JanOne Inc. Annual report pursuant to Section 13 and 15(d)

9. Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

	For the fiscal years ended
	December 31, 2016			January 2, 2016
Current tax expense (benefit):
Federal	$	12		$	(855	)
State		36			(18	)
Foreign		–			(229	)
Current tax expense (benefit)	$	48		$	(1,102	)
Deferred tax expense — domestic		(97	)		(831	)
Deferred tax expense — foreign		–			219
Benefit of income taxes	$	(49	)	$	(1,714	)

	For the fiscal years ended
	December 31, 2016			January 2, 2016
Income tax expense at statutory rate	$	(617	)		(1,920	)
Portion attributable to noncontrolling interest at statutory rate		107			413
State tax expense, net of federal tax effect		(69	)		(288	)
Permanent differences		20			83
Change in valuation allowance		414			(7	)
Recognition of tax effect for the cumulative undistributed earnings from Canada		–			(16	)
Other		95			21
		(49	)		(1,714	)

	December 31, 2016			January 2, 2016
Deferred tax assets:
Net operating loss carryforwards	$	794		$	520
Federal and state tax credits		476			442
Reserves		240			218
Accrued expenses		2,015			1,964
Share-based compensation		355			352
Accumulated other comprehensive loss		361			361
Property and equipment		8			191
Unrealized Currency Exchange		238			–
Other		161			166
Total deferred tax assets		4,648			4,214
Deferred tax liabilities:
Prepaid expenses		(56	)		(89	)
Property and equipment		(162	)		(138	)
Investments		(1,269	)		(1,269	)
Other		(69	)		(137	)
Total deferred tax liabilities		(1,556	)		(1,633	)
Valuation allowance		(1,011	)		(597	)
Net deferred tax assets	$	2,081		$	1,984

The deferred tax amounts have been classified in the accompanying consolidated balance sheets as follows: