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Income Taxes

12 Months Ended

Jun. 30, 2013

NOTE E - INCOME TAXES:

Provision for income taxes from continuing operations consists of the following (in thousands):

	Year Ended
	June 30,			June 24,
	2013			2012
Current - Federal	$	-		$	310
Current - State		33			26
Deferred - Federal		(555	)		67
Deferred - State		(4	)		16
Provision for income taxes	$	(526	)	$	419

Included in loss from discontinued operations is $72,000 and $32,000 of tax benefit for the fiscal years ended June 30, 2013 and June 24, 2012, respectively.

The effective income tax rate varied from the statutory rate for the years ended June 30, 2013 and June 24, 2012 as reflected below (in thousands):

	June 30,			June 24,
	2013			2012
Federal income taxes based on 34%
of pre-tax income	$	(560	)	$	269
State income tax, net of federal effect		22			28
Permanent adjustments		13			127
Other		(1	)		(5	)
	$	(526	)	$	419

The tax effects of temporary differences that give rise to the net deferred tax assets consisted of the following (in thousands):

	June 30,			June 24,
	2013			2012


Current
Reserve for bad debt	$	81		$	88
Deferred fees		52			62
Other reserves and accruals		749			625
Credit carryforwards		-			26
Net operating loss carryforwards		-			277
		882			1,078
Non Current
Credit carryforwards		129			-
Net operating loss carryforwards		300			-
Depreciable assets		(261	)		(699	)

Total gross deferred tax asset		1,050			379

Valuation allowance		-			-

Net deferred tax asset	$	1,050		$	379

At the end of fiscal 2013 the Company had net operating loss carryforwards totaling $0.9 million that are available to reduce future taxable income and will begin to expire in 2013. Management believes that future operations will generate sufficient taxable income, along with the reversal of temporary differences, to fully realize the net deferred tax asset.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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