Annual report pursuant to section 13 and 15(d)

Income Taxes

v2.4.0.8
Income Taxes
 12 Months Ended
Sep. 29, 2013
Income Tax Disclosure [Abstract]  
Income Taxes

Note 12 - Income Taxes

 

The income tax provisions as of September 29, 2013 and September 30, 2012 include the following:

 

    (Thousands)  
    2013     2012  
Current income tax expense:                
Federal   $ —     $ —  
State                
    $ —     $ —  
Deferred income tax provision (benefit):                
Federal   $ 80     $ (105 )
State                
Change in valuation allowance     —       153  
                 
Provision for (Benefit from) income taxes, net   $ 80     $ 48  

 

The income tax provision for Optex Systems as of September 29, 2013 differs from those computed using the statutory federal tax rate of 34%, due to the following permanent differences:

 

    2013     %     2012     %  
                         
Tax provision (benefit) at statutory federal rate   $ 74       34 %   $ (109 )     (34 )%
Nondeductible expenses     6       3 %     —       0 %
Change in valuation and other     —       —       157       49 %
 Provision for (Benefit from) income taxes, net   $ 80       37 %   $ 48       15 %

 

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 29,
2013		     As of 
September 30,
2012		  
             
Stock Options   $ 171     $ 128  
Inventory Reserve     189       139  
Unicap     50       47  
Contract Loss Reserve     (279 )     (279 )
Fixed assets     27       26  
Goodwill Amortization     1,773       1,934  
Intangible Asset Amortization     915       1,007  
Net Operating Losses     917       848  
Other     (47 )     (54 )
Subtotal   $ 3,716     $ 3,796  
Valuation allowance     (2,639 )     (2,639 )
Net deferred asset (liability)-long term   $ 1,077     $ 1,157  

 

As of September 29, 2013, the Company has a net operating loss of approximately $2,698 thousand as compared to a net loss carryforwards of $2,494 thousand available as of September 30, 2012.

 

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 29, 2013, September 30, 2012 and October 2, 2011 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 29, 2013, and there were no income taxes paid the fiscal year ended September 30, 2012.