INCOME TAXES (Notes)

9 Months Ended

Mar. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The Company files income tax returns in the United States federal jurisdiction and in several state jurisdictions.  The statute of limitations for the Company’s federal tax returns for tax years beginning July 1, 2014 or later are open.  For states in which the Company files state income tax returns, the statute of limitations is generally open for tax years ended June 30, 2014 or later.

On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (“the Tax Act”) was signed. The Tax Act significantly changed the income tax environment for US corporations, including the reduction of the US federal corporate tax rate from 35% to 21%. For the three and nine months ended March 31, 2019, the Company recorded an income tax benefit of $23,020 and $22,995, respectively, due to refund of the AMT credits not recognized in prior years. This compare to income tax expense of $4,274 and $3,047,356 for the three and nine months ended March 31, 2018. There was no tax expense in the three months ended March 31, 2019, related to the federal statutory tax rate of 21% due to tax net operating loss carryforwards being utilized. The income tax expense for the nine months ended March 31, 2018 includes $713,826 for the write down of deferred income taxes due to the change in federal statutory rate as a result of the passage of the Tax Act and $2,429,235 related to the recording of a valuation allowance for all deferred taxes. The valuation allowance was recorded due to uncertainty of the ability to realize the deferred tax assets.

The Company does not believe it has any unrecognized tax benefits as of March 31, 2019 or June 30, 2018. Any changes to the Company’s unrecognized tax benefits as of March 31, 2019, if recognized, would impact the effective tax rate.