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

16. Income Taxes (Tables)

12 Months Ended

Dec. 30, 2017

	For the fiscal years ended
	December 30, 2017			December 31, 2016
Current tax expense (benefit):
Federal	$	–		$	12
State		34			36
Foreign		–			–
Current tax expense (benefit)	$	34		$	48
Deferred tax expense - domestic		(3,475	)		(97	)
Deferred tax expense - foreign		–			–
Benefit of income taxes	$	(3,441	)	$	(49	)

	For the fiscal years ended
	December 30, 2017			December 31, 2016
Income tax expense at statutory rate	$	(995	)	$	(617	)
Portion attributable to noncontrolling interest at statutory rate		–			107
State tax expense, net of federal tax effect		(141	)		(69	)
Permanent differences		55			20
Change in tax rates		(3,107	)		–
Change in valuation allowance		590			414
Other		157			96
	$	(3,441	)	$	(49	)

The components of net deferred tax assets (liabilities) as of December 30, 2017 and December 31, 2016, are as follows:

	December 30, 2017			December 31, 2016
Current deferred tax assets (liabilities):
Allowance for bad debts	$	16		$	21
Accrued expenses		1,107			1,651
Inventory		80			192
Accrued compensation		23			175
Reserves		4			26
Prepaid expenses		(125	)		(56	)
		1,105			2,009
Less: valuation allowance		–			–
Total current deferred tax assets (liabilities)		1,105			2,009

Long term deferred tax assets (liabilities):
Net operating loss		1,217			709
Capital loss		–			104
Tax credits		473			473
Share-based compensation		302			354
Intangibles		(6,615	)		–
Property and equipment		(72	)		(596	)
Deferred rent		16			337
Unrealized losses (gains)		132			600
Section 481(a) adjustment		(44	)		(67	)
Investments		–			(1,269	)
Other		11			(61	)
		(4,580	)		584
Less: valuation allowance		(1,102	)		(512	)
Total long term deferred tax assets (liabilities)		(5,682	)		72
Net deferred tax assets (liabilities)	$	(4,577	)	$	2,081

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