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Income Taxes
9 Months Ended
Mar. 31, 2017
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
 
The Company accounts for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Valuation allowances are established, when necessary, to reduce deferred tax assets to amounts that are more likely than not to be realized. As of March 31, 2017, and June 30, 2016, the Company established a full valuation allowance against all of its net deferred tax assets.

For the three months ended March 31, 2017, and 2016, the Company incurred pre-tax losses in the amount of $2.8 million and $3.9 million, respectively. For the nine months ended March 31, 2017, and 2016, the Company incurred pre-tax losses in the amount of $9.0 million and $9.9 million, respectively. The total effective tax rate was approximately 0% for each of the nine months ended March 31, 2017, and 2016.
   
For each of the nine months ended March 31, 2017, and 2016, the Company’s effective tax rate differed from the federal statutory rate of 35%, primarily due to recording of the valuation allowance placed against its net deferred tax assets. 

FASB ASC 740, “Income Taxes” addresses the accounting for uncertainty in income tax recognized in an entity’s financial statements and prescribes a recognition threshold and measurement attribute for financial statement disclosure of tax positions taken or expected to be taken on a tax return. The Company had an unrecognized tax benefit of $0 and $0.1 million for the nine months ended March 31, 2017, and 2016, respectively.
 
Loss carryovers are generally subject to modification by tax authorities until three years after they have been utilized; as such, the Company is subject to examination for the fiscal years ended 2000 through present for federal purposes and fiscal years ended 2006 through present for state purposes. The reason for this extended examination period is due to the utilization of the loss carryovers generated by the sale of our Astrotech Space Operations business unit in fiscal year 2015.