Income Taxes

12 Months Ended

Sep. 24, 2024

Income Taxes [Abstract]

Income Taxes

7. Income Taxes

Deferred tax assets (liabilities) are comprised of the following at the period end (in thousands):

	September 24, 2024 Long Term			September 26, 2023 Long Term
Deferred income tax assets (liabilities):
Tax effect of net operating loss carry-forward	$	3,426		$	3,622
General business credits		7,399			6,262
Deferred revenue		52			29
Intangibles basis differences		547			925
Long-term lease liability		9,443			10,613
Other future benefits		664			668
Deferred tax assets		21,531			22,119
Less valuation allowance		-			-
Deferred tax assets, net of valuation allowance		21,531			22,119
Partnership/joint venture basis differences		(95	)		(64	)
Property and Equipment basis differences		(1,599	)		(1,731	)
ROU asset		(7,630	)		(8,741	)
Deferred tax liabilities		(9,324	)		(10,536	)
Net deferred tax assets	$	12,207		$	11,583

The Company has Federal net operating loss carry-forwards available for future periods, as discussed below, of approximately $11,643,000 from 2019, $0 from 2018, and $1,035,000 from 2017 and prior for income tax purposes. The net operating loss carry-forwards from periods prior to 2019 expire between 2029 and 2038. Based on the changes in control, which occurred in 2011, 2013, and 2017, the utilization of the loss carry-forwards incurred for periods prior to 2017 is limited to approximately $163,000 per year. The Company has general business tax credits of $7,399,000 from 2014 through 2024 which expire from 2034 through 2043. As of September 24, 2024, our deferred tax assets were primarily the result of net operating loss and tax credit carry-forwards. No valuation allowance was recorded against our gross deferred tax asset balance as of September 24, 2024 or September 26, 2023. As of each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. As of September 24, 2024, management determined that there is sufficient positive evidence, including the recent cumulative pretax income, potential future taxable income from the acquisition of the non-controlling interests in several joint interests in fiscal year 2023, recent performance improvement and tempering of macroeconomic risks, and the utilization of net operating loss carry-forwards on the most recently filed tax return. Based on the review of this evidence, management determined that there is sufficient positive evidence to conclude that it is more likely than not deferred taxes assets are realizable and therefore no valuation allowance is necessary. The total amount of deferred tax benefit recorded to additional paid-in capital as a result of the purchase of the non-controlling interests during the year ended September 26, 2023 was $792,000.

The following table summarizes the components of the provision for income taxes (in thousands):

	Fiscal 2024			Fiscal 2023
Current:
Federal	$	-		$	-
State		-			4
		-			4
Deferred:
Federal		(632	)		(9,925	)
State		8			(866	)
		(624	)		(10,791	)
Total income tax benefit	$	(624	)	$	(10,787	)

The income tax expense for years ended September 24, 2024 and September 26, 2023 differed from the amounts computed by applying the U.S. Federal statutory tax rate to pre-tax income as follows (in thousands):

	Fiscal 2024			Fiscal 2023
U.S. Federal tax provision at statutory rate	$	208		$	182
State (tax benefit) income tax, net of federal tax benefit		(2	)		344
FICA/WOTC tax credits		(1,126	)		(989	)
Effect of change in valuation allowance		-			(10,535	)
Permanent differences		281			383
Other		15			(172	)
Provision for income taxes	$	(624	)	$	(10,787	)