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INCOME TAXES
 12 Months Ended
Sep. 28, 2025
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 9. INCOME TAXES

 

The Company reported income (loss) before income taxes in the amount of $1,920,309 and $(1,479,797) for the year ended September 28, 2025 and September 29, 2024, respectively.

 

The components of the provision for (benefit from) income taxes consisted of the following:

 SCHEDULE OF PROVISION FOR INCOME TAX

   September 28, 2025   September 29, 2024 
   For the year ended 
   September 28, 2025   September 29, 2024 
Current:        
Federal  $5,658  $(1,610)
State   11,655    4,635
Total current   17,313    3,025
           
Deferred:          
Federal   370,402   (290,287) 
State   74,511    (98,054) 
Total deferred   444,913   (388,341) 
Total provision (benefit)  $462,226   $(385,316)

 

A reconciliation of the federal corporate income tax rate and the effective tax rate on income (loss) before income taxes consists of the following:

 SCHEDULE OF FEDERAL CORPORATE STATUTORY INCOME TAX RATE AND THE EFFECTIVE RATE 

   September 28, 2025   September 29, 2024 
   For the year ended 
   September 28, 2025   September 29, 2024 
Federal statutory rate   21.0%   21.0%
State taxes, net of federal benefit   4.3    4.3
Non-deductible expenses   0.1   (0.1)
Permanent differences   (0.5)   — 
Change in valuation allowance   

(0.8

)    0.7 
Other   —    0.1 
Effective income tax rate   24.1%   26.0%

 

Deferred tax assets and liabilities arise from temporary differences between financial reporting and tax reporting bases of assets and liabilities, and operating loss carryforwards for tax purposes. The components of deferred income tax assets and liabilities are as follows:

 

 SCHEDULE OF DEFERRED INCOME TAX ASSETS AND LIABILITIES

   September 28, 2025   September 29, 2024 
Deferred tax assets (liabilities)          
Net operating loss carryforwards  $1,314,603   $1,388,557 
Accrued liabilities   40,809    266,269 
Inventory   11,711    — 
Property and equipment   (1,571,584)   (1,397,861)
Intangibles assets   (267)   (2,434)
Valuation allowance   (84,173)   (98,519)
Net deferred tax (liability) asset  $(288,901)   $156,012

 

GAAP requires a valuation allowance be recorded against a deferred tax asset (liability) if it is more likely than not that the tax benefit associated with the asset will not be realized in the future. As shown in the table above, the Company had a valuation allowance of $84,173 and $98,519 as of September 28, 2025 and September 29, 2024, respectively. This valuation allowance is based on the Company’s State of Missouri net operating loss carryforwards totaling $2.66 million as of September 28, 2025, which expire in varying amounts from 2030 through 2045. While significantly improved during the year ended September 28, 2025, due to the Company’s history of losses in the State of Missouri, the Company has established a full valuation allowance against the related net operating loss carryforward asset as of September 28, 2025 and September 29, 2024, respectively.

 

 

PARKS! AMERICA, INC. and SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

September 28, 2025 and September 29, 2024

 

NOTE 9. INCOME TAXES (CONTINUED)

 

The Company had net operating loss carryforwards available for federal and State of Georgia tax purposes of $5.64 million and $1.10 million, respectively, as of September 28, 2025. Each of these has an indefinite carryforward period; however, each is limited to offset 80% of taxable income any period applied.

 

The Company follows guidance issued by the FASB ASC 740 with respect to accounting for uncertainty in income taxes. A tax position is recognized as a benefit only if it is “more-likely-than-not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than fifty percent likely of being realized on examination. For tax positions not meeting the “more-likely-than-not” test, no tax benefit is recorded. The Company has no unrecognized tax benefits under guidance related to tax uncertainties. The Company does not anticipate its unrecognized tax benefits will significantly change in the next twelve months. Any tax penalties or interest expense will be recognized in income tax expense. No interest and penalties related to unrecognized tax benefits were accrued as of September 28, 2025 and September 29, 2024.

 

The Company and one of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. The Company is open to federal and state tax audits until the applicable statute of limitations expire; however, the Company currently has no federal or state income tax examinations underway. The tax years 2021 through 2024 remain open to examination by the major taxing jurisdictions in which the Company and its subsidiaries operate.