Income Taxes (Tables)

12 Months Ended

Jun. 30, 2019

Income Taxes

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,
	2019		2018
Current income taxes:
Federal	$	310	$	567
State		141		37
		451		604
Deferred income tax provision		771		80
Provision for income taxes	$	1,222	$	684

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):

	2019				2018
			% of				% of
			Pre-tax				Pre-tax
	Amount		Income		Amount		Income
Tax at Federal statutory rate	$	2,822	21.0	%	$	2,296	27.6	%
Increases (decreases) in taxes resulting from:
Meals and entertainment		49	0.3	%		56	0.6	%
State income taxes, net of Federal income tax benefit		103	0.8	%		29	0.3	%
Foreign source income not subject to tax		(1,219)	(9.1)	%		(1,895)	(22.7)	%
R&D Credit		(408)	(3.0)	%		(314)	(3.8)	%
Transition tax		0	0.0	%		381	4.6	%
Foreign withholding tax		0	0.0	%		256	3.1	%
Release of accrued tax reserves		(151)	(1.1)	%		0	0	%
U.S. Federal Tax rate reduction		0	0.0	%		(136)	(1.6)	%
Audit Settlements		12	0.1	%		0	0	%
Other, net		14	0.1	%		11	0.1	%
Effective tax rate	$	1,222	9.1	%	$	684	8.2	%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and deferred tax liabilities at June 30, 2019 and 2018 are as follows (in thousands):

	Deferred Tax Assets (Liabilities)
	2019		2018
Accounts receivable	$	17	$	17
Inventories		246		437
Accrued liabilities		250		233
Stock based compensation expense		36		15
Intangibles		(502)		(324)
R&D credit		378		781
Property, plant and equipment		(407)		(339)
Revenue reserves		319		0
Other deferred tax liabilities		(409)		(256)
		(72)		564
Valuation allowance		—		—
Net deferred tax liabilities	$	(72)	$	564

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, 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
Decrease to unrecognized tax benefits resulting from the release of R&D credits due to the IRS audit		(151)		—		(151)
Increases to unrecognized tax benefits resulting from the generation of additional R&D credits		55		—		55
Balance of gross unrecognized tax benefits as of June 30, 2019	$	125	$	—	$	125