Income Taxes (Tables)

12 Months Ended

Jun. 30, 2014

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes is comprised of the following (in thousands):

	For the Years Ended June 30,
	2014		2013
Current income taxes:
Federal	$	76	$	(89)
State		31		32
		107		(57)
Deferred income tax provision		424		244
Provision for income taxes	$	531	$	187

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the U.S. Federal statutory income tax rate to our actual effective tax rate on earnings before income taxes is as follows (dollars in thousands):

	For the Years Ended June 30,
	2014					2013
	Amount		% of Pre-tax Income			Amount		% of Pre-tax Income
Tax at Federal statutory rate	$	1,362		34.0	%	$	1,091		34.0	%
Increases (decreases) in taxes resulting from:
Meals and entertainment		63		1.6	%		59		1.8	%
State income taxes, net of Federal income tax benefit		20		0.5	%		21		0.6	%
Foreign source income not subject to tax		(837)		(20.9)	%		(740)		(23.0)	%
R&D Credit refund		(144)		(3.6)	%		(221)		(6.9)	%
Other, net		67		1.7	%		(23)		(0.7)	%
Effective tax rate	$	531		13.3	%	$	187		5.8	%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and deferred tax liabilities at June 30, 2014 and 2013 are as follows (in thousands):

	Current Deferred Tax Assets (Liabilities)				Long-term Deferred Tax Assets (Liabilities)
	2014		2013		2014		2013
Accounts receivable	$	25	$	24	$	—	$	—
Inventories		406		385		336		455
Accrued Liabilities		308		233		64		29
Stock based compensation expense		—		—		139		137
Goodwill		—		—		1,324		1,623
R&D credit		—		—		451		360
Property, plant and equipment		—		—		(527)		(575)
Other deferred tax liabilities		—		—		(782)		(503)
		739		642		1,005		1,526
Valuation allowance		—		—		—		—
Net deferred tax assets	$	739	$	642	$	1,005	$	1,526

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	Tax		Interest		Total
Balance of gross unrecognized tax benefits as of July 1, 2013	$	153	$	—	$	153
Increases to unrecognized tax benefits resulting from the generation of additional R&D credits		16		—		16
Balance of gross unrecognized tax benefits as of June 30, 2014	$	169	$	—	$	169