Note 12 - Income Taxes

12 Months Ended

Dec. 28, 2024

Notes to Financial Statements

Income Tax Disclosure [Text Block]

(12) Income Taxes

Components of income tax expense (benefit) for each year are as follows:

	2024			2023
Current:
Federal	$	-		$	81,919
State		456			456
Current income tax provision (benefit):		456			82,375
Deferred:
Federal		(727,390	)		357,507
State		(231,566	)		142,203
Deferred income tax provision (benefit), net		(958,956	)		499,710
Total	$	(958,500	)	$	582,085

Deferred tax assets as of December 28, 2024 and December 30, 2023 are as follows:

	December 28, 2024		December 30, 2023
Deferred Tax Assets:
Net operating loss carryforwards	$	766,023	$	-
Stock compensation		117,453		209,609
Credit carryforwards		899,441		865,928
Inventory		141,615		84,955
Accrued liabilities		6,468		-
Depreciation		120,452		143,081
Capitalized R&D, net		474,088		263,421
Other		3,142		2,732
Net deferred tax assets	$	2,528,682	$	1,569,726

A summary of the change in the deferred tax asset is as follows:

	2024		2023
Gross deferred tax balance at beginning of year	$	1,569,726	$	2,069,436
Deferred tax benefit (provision)		958,956		(499,710	)
Balance at end of year, net	$	2,528,682	$	1,569,726

Income tax expense is different from the amounts computed by applying the U.S. federal statutory income tax rate of 21 percent to pretax income as a result of the following:

	2024			2023
Tax at statutory rate	$	(857,216	)	$	416,663
State tax, net of federal benefit		(231,204	)		142,562
Other		129,920			22,860
Total	$	958,500		$	582,085

The Company’s income tax filings are subject to review and examination by federal and state taxing authorities. The Company is currently open to audit under the applicable statutes of limitations for the years 2020 through 2023.