Income Taxes (Tables)

12 Months Ended

Jun. 30, 2017

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,
	2017		2016		2015
Current income taxes:
Federal	$	280	$	(31)	$	(49)
State		55		27		35
		335		(4)		(14)
Deferred income tax provision		361		375		230
Provision for income taxes	$	696	$	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):

	2017					2016					2015
	Amount		% of Pre-tax Income			Amount		% of Pre-tax Income			Amount		% of Pre-tax Income

Tax at Federal statutory rate	$	2,140		34.0	%	$	2,089		34.0	%	$	1,721		34.0	%

Increases (decreases) in taxes resulting from:
Meals and entertainment		68		1.1	%		61		1.0	%		66		1.3	%
State income taxes, net of Federal income tax benefit		28		0.4	%		20		0.3	%		21		0.4	%
Foreign source income not subject to tax		(1,286)		(20.4)	%		(1,278)		(20.8)	%		(1,069)		(21.1)	%
R&D Credit refund		(286)		(4.5)	%		(415)		(6.8)	%		(328)		(6.5)	%
Undistributed foreign earnings		—		—	%		(90)		(1.4)	%		(93)		(1.8)	%
Other, net		32		0.5	%		(16)		(0.3)	%		(102)		(2.0)	%

Effective tax rate	$	696		11.1	%	$	371		6.0	%	$	216		4.3	%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and deferred tax liabilities at June 30, 2017 and 2016 are as follows (in thousands):

	Deferred Tax Assets (Liabilities)
	2017		2016
Accounts receivable	$	26	$	26
Inventories		586		564
Accrued Liabilities		453		400
Stock based compensation expense		28		154
Intangibles		(258)		(14)
R&D credit		1,427		1,214
Property, plant and equipment		(579)		(503)
Other deferred tax liabilities		(1,039)		(702)
		644		1,139
Valuation allowance		—		—
Net deferred tax assets	$	644	$	1,139

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
Increases to unrecognized tax benefits resulting from the generation of additional R&D credits		35		—		35

Balance of gross unrecognized tax benefits as of June 30, 2017	$	183	$	—	$	183