Income Taxes (Tables)

12 Months Ended

Jun. 30, 2018

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,
	2018		2017
Current income taxes:
Federal	$	567	$	280
State		37		55
		604		335
Deferred income tax provision		80		361
Provision for income taxes	$	684	$	696

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):

	2018						2017
	Amount			% of Pre-tax Income			Amount			% of Pre-tax Income
Tax at Federal statutory rate	$	2,296			27.6	%	$	2,140			34.0	%

Increases (decreases) in taxes resulting from:
Meals and entertainment		56			0.6	%		68			1.1	%
State income taxes, net of Federal income tax benefit		29			0.3	%		28			0.4	%
Foreign source income not subject to tax		(1,895	)		(22.7	)%		(1,286	)		(20.4	)%
R&D Credit		(314	)		(3.8	)%		(286	)		(4.5	)%
Transition tax		381			4.6	%		—			—
Foreign withholding tax		256			3.1	%		—			—
U.S. Federal Tax rate reduction		(136	)		(1.6	%)		—			—
Other, net		11			0.1	%		32			0.5	%
Effective tax rate	$	684			8.2	%	$	696			11.1	%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and deferred tax liabilities at June 30, 2018 and 2017 are as follows (in thousands):

	Deferred Tax Assets (Liabilities)
	2018			2017
Accounts receivable	$	17		$	26
Inventories		437			586
Accrued Liabilities		233			453
Stock based compensation expense		15			28
Intangibles		(324	)		(258	)
R&D credit		781			1,427
Property, plant and equipment		(339	)		(579	)
Other deferred tax liabilities		(256	)		(1,039	)
		564			644
Valuation allowance		—			—
Net deferred tax assets	$	564		$	644

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, 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

Increases to unrecognized tax benefits resulting from the generation of additional R&D credits		38		—		38

Balance of gross unrecognized tax benefits as of June 30, 2018	$	221	$	—	$	221