Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.22.4
Income Taxes (Tables)
12 Months Ended
Oct. 02, 2022
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Provision

The income tax provision for the years ended October 2, 2022 and October 3, 2021 include the following:

 

    2022     2021  
    (Thousands)  
    2022     2021  
Current income tax expense:                
Current year federal income tax   $ 331     $ -  
Prior year tax adjustment     -       (62 )
Current income tax expense     331       (62 )
Deferred income tax provision (benefit):                
Federal     33       (39 )
                 
Provision for (Benefit from) income taxes, net   $ 364     $ (101 )
Schedule of Effective Income Tax Rate Reconciliation

The income tax provision for Optex Systems as of October 2, 2022 and October 3, 2021 differs from those computed using the statutory federal tax rate in the respective years due to the following permanent differences:

 

    2022     %     2021     %  
                         
Tax provision (benefit) at statutory federal rate   $ 346       21     $ 426       21  
Nondeductible expenses     1       -       (531 )     (26 )
Other temporary adjustments     (17 )     (1 )     221       11  
Prior year federal income tax adjustment     -       -       (62 )     (3 )
Change in deferred tax valuation allowance     34       2       (155 )     (8 )
Provision for (benefit from) income taxes, net   $ 364       22     $ (101 )     (5 )
Schedule of Deferred Income Taxes

Deferred income taxes recorded in the balance sheets result from differences between financial statement and tax reporting of income and deductions. A summary of the composition of the deferred income tax assets (liabilities) follows:

 

   

As of

October 2, 2022

   

As of

October 3, 2021

 
    (Thousands)  
    Deferred Tax Asset  
   

As of

October 2, 2022

   

As of

October 3, 2021

 
             
Stock Compensation   $ 76     $ 73  
Inventory Reserve     170       134  
Unicap     34       27  
Deferred Compensation     29       -  
Fixed assets     (219 )     (226 )
Goodwill Amortization     100       199  
Intangible Asset Amortization     57       113  
Contract Loss Reserve     61       11  
Accrued Paid Time Off     85       79  
Net Operating Losses     1,327       1,657  
Other     65       29  
Subtotal   $ 1,785     $ 2,096  
Valuation allowance     (843 )     (808 )
Net deferred asset   $ 942     $ 1,288