Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.21.4
Income Taxes (Tables)
12 Months Ended
Oct. 03, 2021
Income Tax Disclosure [Abstract]  
Schedule of Income Tax Provision

The income tax provision for the years ended October 3, 2021 and September 27, 2020 include the following:

 

    2021     2020  
    (Thousands)  
    2021     2020  
Current income tax expense:                
Current year federal income tax   $ -     $ 403  
Prior year tax adjustment     (62 )     (59 )
Current income tax expense     (62 )     344  
Deferred income tax provision (benefit):                
Federal     (39 )     187  
                 
Provision for (Benefit from) income taxes, net   $ (101 )   $ 531  
Schedule of Effective Income Tax Rate Reconciliation

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

 

    2021     %     2020     %  
                         
Tax provision (benefit) at statutory federal rate   $ 426       21     $ 495       21  
Nondeductible expenses     (531 )     (26)     108       5  
Other temporary adjustments     221       11       35       1  
Prior year federal income tax adjustment     (62 )     (3)     (59 )     (2)
Change in deferred tax valuation allowance     (155 )     (8)     (48 )     (2)
Provision for (benefit from) income taxes, net   $ (101 )     (5)   $ 531       23  
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:

 

         
    (Thousands)  
    Deferred Tax Asset  
    As of
October 3, 2021
    As of
September 27, 2020
 
             
Stock Compensation   $ 73     $ 64  
Inventory Reserve     134       119  
Unicap     27       31  
Deferred Compensation     -       39  
Fixed assets     (226 )     (18 )
Goodwill Amortization     199       299  
Intangible Asset Amortization     113       170  
Net Operating Losses     1,657       1,362  
Other     119       124  
Subtotal   $ 2,096     $ 2,190  
Valuation allowance     (808 )     (963 )
Net deferred asset   $ 1,288     $ 1,227