Income Taxes (Tables)

12 Months Ended

Jun. 30, 2015

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,
	2015		2014
Current income taxes:
Federal	$	(49)	$	76
State		35		31
		(14)		107
Deferred income tax provision		230		424
Provision for income taxes	$	216	$	531

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 for the years ended June 30, (dollars in thousands):

	2015					2014
			% of					% of
			Pre-tax					Pre-tax
	Amount		Income			Amount		Income
Tax at Federal statutory rate	$	1,721		34.0	%	$	1,362		34.0	%
Increases (decreases) in taxes resulting from:
Meals and entertainment		66		1.3	%		63		1.6	%
State income taxes, net of Federal income tax benefit		21		0.4	%		20		0.5	%

Foreign source income not subject to tax		(1,069)		(21.1)	%		(837)		(20.9)	%
R&D Credit refund		(328)		(6.5)	%		(144)		(3.6)	%
Income tax reserve adjustments		(93)		(1.8)	%		—		—
Other, net		(102)		(2.0)	%		67		1.7	%
Effective tax rate	$	216		4.3	%	$	531		13.3	%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and deferred tax liabilities at June 30, 2015 and 2014 are as follows (in thousands):

	Current Deferred Tax Assets				Long-term Deferred Tax
	(Liabilities)				Assets (Liabilities)
	2015		2014		2015		2014
Accounts receivable	$	36	$	25	$	—	$	—
Inventories		533		406		261		336
Accrued Liabilities		311		308		86		64
Stock based compensation expense		—		—		147		139
Goodwill		—		—		214		1,324
R&D credit		—		—		804		451
Property, plant and equipment		—		—		(512)		(527)
Other deferred tax liabilities		—		—		(366)		(782)
		880		739		634		1,005
Valuation allowance		—		—		—		—
Net deferred tax assets	$	880	$	739	$	634	$	1,005

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, 2014	$	169	$	—	$	169
Decreases to unrecognized tax benefits resulting from expiring statutes		(67)		—		(67)
Balance of gross unrecognized tax benefits as of June 30, 2015	$	102	$	—	$	102