| Income Taxes: | 11. Income Taxes: A reconciliation of the expected federal income tax expense based on the federal statutory tax rate to the actual income tax expense is provided below: Year Ended December 30, 2023 December 31, 2022 December 25, 2021 Federal income tax expense at statutory rate (21%, 21%, 21%) $ 10,785,900 $ 10,664,500 $ 10,472,100 Change in valuation allowance (551,600) (6,600) (1,914,400) State and local income taxes, net of federal benefit 1,513,100 1,515,900 1,546,400 Permanent differences, including stock option expenses (1,372,300) (955,900) (2,332,600) Expiration of attributes 528,600 — 2,057,000 Adjustment to uncertain tax positions 240,100 185,300 163,400 Other, net 39,400 (44,600) (44,500) Actual income tax expense $ 11,183,200 $ 11,358,600 $ 9,947,400 Components of the provision for income taxes are as follows: Year Ended December 30, 2023 December 31, 2022 December 25, 2021 Current: Federal $ 9,237,600 $ 8,892,200 $ 8,782,000 State 1,883,900 2,167,900 2,193,900 Foreign 573,800 586,200 333,500 Current provision 11,695,300 11,646,300 11,309,400 Deferred: Federal (504,700) (351,500) (1,435,000) State (7,400) 63,800 73,000 Deferred provision (512,100) (287,700) (1,362,000) Total provision for income taxes $ 11,183,200 $ 11,358,600 $ 9,947,400 The tax effects of temporary differences that give rise to the net deferred income tax assets and liabilities are presented below: December 30, 2023 December 31, 2022 Deferred tax assets: Accounts receivable and lease reserves $ 500 $ 1,900 Non-qualified stock option expense 1,769,200 1,540,100 Deferred revenue 1,612,200 1,584,600 Trademarks 36,900 34,700 Lease deposits 6,700 72,700 Impairment of note investments — 529,500 Lease revenue and initial direct costs 29,200 63,400 Foreign tax credits 631,100 372,100 Valuation allowance (350,000) (901,600) Depreciation and amortization 25,500 — Other 291,100 271,600 Total deferred tax assets 4,052,400 3,569,000 Deferred tax liabilities: Depreciation and amortization — (28,600) Total deferred tax liabilities — (28,600) Total net deferred tax assets $ 4,052,400 $ 3,540,400 The Company has assessed its taxable earnings history and prospective future taxable income. Based upon this assessment, the Company has determined that it is more likely than not that its deferred tax assets will be realized in future periods and no valuation allowance is necessary, except for the deferred tax assets related to the impairment of note investments (which is a capital loss for tax purposes) and the foreign tax credits. The foreign tax credits will expire after 10 years. As a result, valuation allowances of The amount of unrecognized tax benefits, including interest and penalties, as of December 30, 2023 and December 31, 2022, was $1,345,000 and $1,050,300 , respectively, primarily for potential state taxes. All of these unrecognized tax benefits, if recognized, would impact the effective tax rate. The Company recognizes interest accrued related to unrecognized tax benefits and penalties as income tax expense for all periods presented. The Company had accrued approximately The following table summarizes the activity related to the Company’s unrecognized tax benefits: Total Balance at December 25, 2021 $ 677,200 Increases related to current year tax positions 266,800 Expiration of the statute of limitations for the assessment of taxes (72,700) Balance at December 31, 2022 871,300 Increases related to current year tax positions 277,600 Subtractions for tax positions of prior years (65,800) Balance at December 30, 2023 $ 1,083,100 The Company and its subsidiaries file income tax returns in the U.S. federal, numerous state and certain foreign jurisdictions. With few exceptions, we are no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2019. We expect various statutes of limitation to expire during the next 12 months. Due to the uncertain response of taxing authorities, a range of outcomes cannot be reasonably estimated at this time. |
