Income Taxes

9 Months Ended

Mar. 27, 2022

Income Taxes [Abstract]

Income Taxes

Note G - Income Taxes

For the three and nine months ended March 27, 2022, the Company recorded an income tax expense of $3 thousand and $10 thousand, respectively, all of which is attributable to current state taxes. The Company utilized net operating losses to offset federal income taxes.

The Company continually reviews the realizability of its deferred tax assets, including an analysis of factors such as future taxable income, reversal of existing taxable temporary differences, and tax planning strategies. In assessing the need for a valuation allowance, the Company considers both positive and negative evidence related to the likelihood of realization of deferred tax assets. Future sources of taxable income are also considered in determining the amount of the recorded valuation allowance. As of March 27, 2022, the Company had established a full valuation allowance of $6.1 million against its deferred tax assets. The Company will continue to review the need for an adjustment to the valuation allowance.