INCOME TAXES

12 Months Ended

Mar. 28, 2014

Income Tax Disclosure [Abstract]

INCOME TAXES

Note 7 - INCOME TAXES:

The Company accounts for income taxes under the provisions of ASC Topic 740, Income Taxes which includes the provisions of SFAS No. 109 (“SFAS 109”). Under SFAS 109, deferred income tax assets or liabilities are computed based upon the temporary differences between the financial statement and income tax bases of assets and liabilities using the currently enacted marginal income tax rates. Deferred income tax expenses or credits are based on the changes in the deferred income tax assets or liabilities from period to period.

The provision for income taxes consists of the following:

	March 28,
	2014
Current:
Federal	$	489,997
State and local		346,492
Total current tax provision		836,489
Deferred:
Federal		242,708
State and local		68,419
Total deferred tax benefit		311,127
Total provision (benefit)	$	1,147,616

The components of the Company’s deferred taxes at March 28, 2014 are as follows:

Deferred tax assets:
Accounts receivable reserves	$	11,562
Accrued expenses		551,538
Prepaid expenses		(48,019	)
		515,081
Deferred tax liabilities:
Depreciation		17,224
Net deferred tax assets  before valuation allowance		532,305
Valuation allowance		(532,305	)
Net deferred tax assets	$	—

The Company has fully utilized its net operating loss carryovers in prior years.

The foregoing amounts are management’s estimates and the actual results could differ from those estimates. Future profitability in this competitive industry depends on continually obtaining and fulfilling net profitable contracts or the failure of the Company’s engineering development efforts could reduce estimates of future profitability, which could affect the Company’s ability to realize the deferred tax assets.

A reconciliation of the income tax benefit at the statutory Federal tax rate of 34 % to the income tax benefit recognized in the financial statements is as follows:

	March 28,
	2014
Income tax expense (benefit) – statutory rate		34	%
Income tax expenses – state and local, net of federal benefit		12	%
Income tax expense (benefit)		46	%