Income Taxes (Tables)

12 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Schedule of Components of Income Taxes (Benefit)

The following are the components of income taxes (benefit) (in thousands):

Fiscal years ended June 30,	2023		2022
Current
Federal	$	3,137	$	1,510
State		786		269
		3,923		1,779
Deferred
Federal		220		(118	)
State		137		(46	)
		357		(164	)
	$	4,280	$	1,615

Schedule of Reconciliation of Income Tax Expense Computed at the Federal Statutory Tax Rate of Provision for Income Taxes

The reconciliation of income tax expense computed at the federal statutory tax rate of 21% for the fiscal years ended June 30, 2023 and 2022 to the provision for income taxes is as follows (in thousands):

Fiscal years ended June 30,	2023		2022
Tax at the statutory rate	$	2,940	$	1,198
State income taxes, net of federal benefit		747		143
Nondeductible compensation		558		251
Other		35		23
	$	4,280	$	1,615
Effective tax rate		30.6%		28.3%

Schedule of Significant Components of the Company’s Current and Noncurrent Deferred Tax Assets and Liabilities

Significant components of the Company’s current and noncurrent deferred tax assets and liabilities

As of June 30,	2023			2022
Deferred tax assets:
Allowance for doubtful accounts	$	418		$	298
Inventory capitalization		1,074			711
Stock compensation		1,013			697
Accrued liabilities		1,073			978
Other		116			58
		3,694			2,742
Deferred tax liabilities:
Goodwill		(4,946	)		(3,850	)
Depreciation		(2,104	)		(1,855	)
Intangible assets		(1,472	)		(1,544	)
Other		(195	)		(159	)
		(8,717	)		(7,408	)
Net deferred income tax (liabilities) assets	$	(5,023	)	$	(4,666	)