Annual report pursuant to section 13 and 15(d)

Income Taxes

v2.4.0.6
Income Taxes
 12 Months Ended
Oct. 02, 2011
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]

Note 12 - Income Taxes

 

The income tax provisions as of September 30, 2012 and October 2, 2011 include the following:

 

    (Thousands)  
    2012     2011  
Current income tax expense:            
Federal   $ -     $ -  
State                
    $ -     $ -  
Deferred income tax provision (benefit):                
Federal     (105 )     18  
State                
Change in valuation allowance     153       (605 ) 
                 
Provision for (Benefit from) income taxes, net   $ 48     $ (587 )

 

The income tax provision for Optex Systems as of September 30, 2012 differs from those computed using the statutory federal tax rate of 34%, due to the following permanent differences:

 

    2012     %     2011     %    
                           
Tax provision (benefit) at statutory federal rate   $ (109 )     (34% )   $ 1       34 %  
Change in valuation and other     157       49%       (588 )     (14,647 )%  
 Provision for (Benefit from) income taxes, net   $ 48       15%     $ (587 )     (14,613 )%  

 

Deferred income taxes recorded in the balance sheets results 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:

 

      (Thousands)  
    Deferred Tax Asset - Long Term  
   

As of 

September 30,

2012

    

As of 

October 2,

2011

  
             
Stock Options   $ 128      $ 76  
Inventory Reserve     139        27  
Unicap     47        28  
Contract Loss Reserve     (279)       (280 ) 
Fixed assets     26        (16 )
Goodwill Amortization     1,934        2,095  
Intangible Asset Amortization     1,007        1,098  
Net Operating Losses     848        722  
Other     (54)       (60 )
Subtotal   $ 3,796      $ 3,690  
Valuation allowance     (2,639  )     (2,486 )
Net deferred asset (liability)-long term   $ 1,157      $ 1,204  

 

As of September 30, 2012, the Company has a net operating loss of approximately $2,494 thousand as compared to a net loss carryforwards of $2,122 thousand available as of October 2, 2011.

 

As the result of the application of the FASB ASC 740-10, Optex Systems Holdings has no unrecognized tax benefits. By statute, the tax years ending in September 30, 2012, October 2, 2011 and October 3, 2010 are open to examination by the major taxing jurisdictions to which the Optex Systems Holdings is subject.

 

There were no income taxes paid the fiscal year ended September 30, 2012, and the cash refund for income taxes during the fiscal year ended October 2, 2011 was $376 thousand.