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Income taxes | 12 Months Ended
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Mar. 25, 2023
Income Tax Disclosure [Abstract] |
Income taxes |
9. | Income taxes:
(a) | The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of March 25, 2023, the Company did not have any accrued interest or penalties related to uncertain tax positions due to available tax loss carry forwards. The tax years 2016 through 2023 remain open to examination by the major taxing jurisdictions to which the Company is subject.
The Company evaluates its deferred tax assets to determine if any adjustments to its valuation allowances are required. As part of this analysis, the Company could not reach the required conclusion that it would be able to more likely than not realize the value of net deferred tax assets in the future. As a result, the Company has a non-cash valuation allowance of $24.8 million (March 26, 2022 - $22.7 million) against the Company’s net deferred tax assets. The significant items comprising the Company’s net deferred tax assets at March 25, 2023 and March 26, 2022 are as follows:
|  | Fiscal Year Ended |
|  | March 25, 2023 |  |  | March 26, 2022 |
|  | (In thousands) |
Deferred tax assets: |  |  |  |
Loss and tax credit carry forwards |  | $ | 13,282 |  |  | $ | 12,745 |
Difference between book and tax basis of property and equipment |  |  | 7,396 |  |  |  | 6,024 |
Operating lease right-of-use asset |  |  | 3,690 |  |  |  | 4,082 |
Other reserves not currently deductible |  |  | 1,195 |  |  |  | 212 |
Other |  |  | (743 | ) |  |  | (403 | )
Net deferred tax asset before valuation allowance |  |  | 24,820 |  |  |  | 22,660 |
Valuation allowance |  |  | (24,820 | ) |  |  | (22,660 | )
Net deferred tax asset |  | $ | — |  |  | $ | — |
The Company’s income tax expense (benefit) consists of the following components:
|  | Fiscal Year Ended |
|  | March 25, 2023 |  |  | March 26, 2022 |  |  | March 27, 2021 |
|  |  |  |  | (In thousands) |  |  |  |
Income tax expense (benefit): |  |  |  |  |  |  |  |  |  |  |  |
Current |  | $ | — |  |  | $ | — |  |  | $ | — |
Deferred |  |  | (1,860 | ) |  |  | 1,781 |  |  |  | (1,606 | )
Valuation allowance |  |  | 1,860 |  |  |  | (1,781 | ) |  |  | 1,606 |
Income tax expense |  | $ | — |  |  | $ | — |  |  | $ | — |
The Company’s current tax payable was nil at March 25, 2023, March 26, 2022 and March 27, 2021. The Company’s provision for income taxes varies from the amount computed by applying the statutory income tax rates for the reasons summarized below:
|  | Fiscal Year Ended |
| March 25, 2023 |  |  | March 26, 2022 |  |  | March 27, 2021 |
Canadian statutory rate |  |  | 25.9% |  |  |  | 26.1% |  |  |  | 26.2% |
Utilization of unrecognized losses and other tax attributes |  |  | (25.0% | ) |  |  | (130.8% | ) |  |  | (27.3% | )
Permanent differences and other |  |  | (0.9% | ) |  |  | 104.7% |  |  |  | (1.1% | )
Total |  |  | 0% |  |  |  | 0% |  |  |  | 0% |
(b) | At March 25, 2023, the Company had federal non-capital losses of $45.9 million available to reduce future Canadian federal taxable income and investment tax credits (“ITC’s”) in Canada of $0.2 million available to reduce future Canadian federal income taxes payable which will expire in accordance with their respective terms between 2023 and 2031 of which nil expires in calendar 2023. The Company also has capital losses of $1.4 million available to reduce future Canadian capital gains. These capital losses do not have an expiration date.
|  | Non Capital losses as of March 25, 2023 |
|  | (in thousands) |
Year ending March: |  |  | Operating |
Expiring in 2024 |  |  | — |
Expiring in 2025 |  |  | — |
Expiring in 2026 |  |  | 3,390 |
Expiring in 2027 |  |  | — |
Expiring in 2028 |  |  | — |
Expiring in 2029 |  |  | — |
Expiring in 2030 |  |  | 5,095 |
Expiring in 2031 |  |  | 3,575 |
Expiring after 2031 |  |  | 33,762 |
Total non-capital losses as of March 25, 2023 |  |  | 45,937 |

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- 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. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI https://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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