Income Taxes (Tables)

12 Months Ended

Jun. 30, 2016

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,
	2016		2015
Current income taxes:
Federal	$	(31)	$	(49)
State		27		35
		(4)		(14)
Deferred income tax provision		375		230
Provision for income taxes	$	371	$	216

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):

	2016					2015
	Amount		% of Pre-tax Income			Amount		% of Pre-tax Income
Tax at Federal statutory rate	$	2,089		34.0	%	$	1,721	34.0	%
Increases (decreases) in taxes resulting from:
Meals and entertainment		61		1.0	%		66	1.3	%
State income taxes, net of Federal income tax benefit		20		0.3	%		21	0.4	%
Foreign source income not subject to tax		(1,278)		(20.8)	%		(1,069)	(21.1)	%
R&D Credit refund		(415)		(6.8)	%		(328)	(6.5)	%
Undistributed foreign earnings		(90)		(1.4)	%		(93)	(1.8)	%
Other, net		(16)		(0.3)	%		(102)	(2.0)	%
Effective tax rate	$	371		6.0	%	$	216	4.3	%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and deferred tax liabilities at June 30, 2016 and 2015 are as follows (in thousands):

	Current Deferred Tax Assets (Liabilities)				Long-term Deferred Tax Assets (Liabilities)
	2016		2015		2016		2015
Accounts receivable	$	26	$	36	$	—	$	—
Inventories		364		533		200		261
Accrued Liabilities		313		311		87		86
Stock based compensation expense		—		—		154		147
Goodwill		—		—		(14)		214
R&D credit		—		—		1,214		804
Property, plant and equipment		—		—		(503)		(512)
Other deferred tax liabilities		—		—		(702)		(366)
		703		880		436		634
Valuation allowance		—		—		—		—
Net deferred tax assets	$	703	$	880	$	436	$	634

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, 2015	$	102	$	—	$	102
Increases to unrecognized tax benefits resulting from the generation of additional R&D credits		46		—		46
Balance of gross unrecognized tax benefits as of June 30, 2016	$	148	$	—	$	148