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INCOME TAXES
 12 Months Ended
Jun. 28, 2026
INCOME TAXES [Abstract]  
INCOME TAXES
NOTE D - INCOME TAXES:
 
Income before taxes consists of the following (in thousands):
 
                
 
Fiscal Year Ended
    June 28,
2026 		  June 29,
2025 		  June 30,
2024
Domestic
 $3,884   $3,620   $3,092 
Foreign
   -      -      -  
Income before taxes
 $3,884   $3,620   $3,092 
 
Provision for income taxes from continuing operations consists of the following (in thousands):
 
                
 
Fiscal Year Ended
    June 28,
2026 		  June 29,
2025 		  June 30,
2024
 
Current - Federal
 $ -    $ -    $ -  
Current - State
  114    156    33 
Deferred - Federal
  880    793    530 
Deferred - State
  12    (31)    56 
Provision for income taxes
 $1,006   $918   $619 
 
The effective income tax rate varied from the statutory rate for the fiscal years ended June 28, 2026, June 29, 2025, and June 30, 2024 as reflected below (in thousands):
 
           
 
Fiscal Year Ended
 
June 28,
2026
         
US federal statutory rate
 $816    21.0%
State income taxes (net of federal benefit)
  102    2.6 
Expiration of foreign tax credits
   24    0.6 
Nontaxable or nondeductible items
         
Executive compensation
  61    1.6 
Other
  3    0.1 
Provision for income taxes
 $1,006    25.9%
 
         
 

Fiscal Year Ended  
   
June 29,
2025
  
June 30,
2024
Federal income based on statutory rate of 21%
  $
760
   $
649
 
State income taxes (net of federal benefit)
   99    82 
Permanent Adjustments
   (31)    (128) 
Return to Provision
    -     16 
Other
   90     -  
Provision for income taxes
  $918   $619 
 
There was no jurisdiction, other than Federal, to which taxes were paid that exceeded 5% of the Company's total tax expense.
 
The tax effects of temporary differences that give rise to the net deferred tax assets consisted of the following (in thousands):
 
         
    June 28, 2026   June 29, 2025
Allowance for credit losses
 $7   $7 
Deferred fees
  68    55 
Other reserves and accruals
  445    420 
Operating lease liabilities
  48    135 
Credit carryforwards
  32    56 
Net operating loss carryforwards
  2,643    3,503 
Total deferred tax assets
 $3,243   $4,176 
Right-of-use assets
  (41)    (115) 
Other deferred tax liabilities
  (99)    (66) 
Total deferred tax liabilities
 $(140)   $(181) 
Net deferred tax asset
 $3,103   $3,995 
The Company utilized net operating losses to offset federal taxes. At the end of tax year June 28, 2026, the Company had federal net operating loss carryforwards totaling $12 million that are available to reduce future taxable income and will begin to expire in 2035. Under the Tax Cuts and Jobs Act, approximately $1.3 million of the loss carryforwards are limited to 80% and do not expire. Tax years that remain subject to examination by the IRS are the years ended June 25, 2023 through June 29, 2025. Tax years that remain subject to examination by state authorities are the years ended June 26, 2022 through June 29, 2025.
 
The Company continually reviews the realizability of its deferred tax assets, including an analysis of factors such as future taxable income, reversal of existing taxable temporary differences, and tax planning strategies. In assessing the need for a valuation allowance, the Company considers both positive and negative evidence related to the likelihood of realization of deferred tax assets. Future sources of taxable income are also considered in determining the amount of any required valuation allowance. As of June 28, 2026 and June 29, 2025, the Company determined that no valuation allowance was necessary.
 
There are no material uncertain tax positions. Management’s position is that all relevant requirements are met and necessary returns have been filed, and therefore the tax positions taken on the tax returns would be sustained upon examination.