Income Taxes (Tables)

12 Months Ended

Jun. 30, 2013

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,
	2013			2012
Current income taxes:
Federal	$	(89	)	$	11
State		32			57
Foreign		--			--
		(57	)		68
Deferred income tax provision (benefit)		244			199
Provision (benefit) for income taxes	$	187		$	267

Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate

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 (dollars in thousands):

	For the Years Ended June 30,
	2013						2012
	Amount			% of Pre-tax Income			Amount			% of Pre-tax Income
Tax at Federal statutory rate	$	1,091			34.0	%	$	868			34.0	%
Increases (decreases) in taxes resulting from:
Meals and entertainment		59			1.8	%		56			2.2	%
State income taxes, net of Federal income tax benefit		21			0.6	%		39			1.5	%
Foreign source income not subject to tax		(740	)		(23.0	)%		(515	)		(20.2	)%
Stock based compensation expense		--			--			3			0.1	%
Tax reserve reversal		--			--			(61	)		(2.4	)%
R&D Credit refund		(221	)		(6.9	)%		(81	)		(3.2	)%
Other, net		(23	)		(0.7	)%		(42	)		(1.6	)%
Effective tax rate	$	187			5.8	%	$	267			10.4	%

Schedule of Deferred Tax Assets And Liabilities

Deferred tax assets and deferred tax liabilities at June 30, 2013 and 2012 are as follows (in thousands):

	Current Deferred Tax Assets (Liabilities)				Long-term Deferred Tax Assets (Liabilities)
	2013		2012		2013			2012
Accounts receivable	$	24	$	23	$	--		$	--
Inventories		385		399		455			405
Accrued Liabilities		233		228		29			--
Stock based compensation expense		--		--		137			137
Goodwill		--		--		1,623			1,875
R&D credit		--		--		360			225
Property, plant and equipment		--		--		(575	)		(624	)
Other deferred tax liabilities		--		--		(503	)		(256	)
		642		650		1,526			1,762
Valuation allowance		--		--		--			--
Net deferred tax assets	$	642	$	650	$	1,526		$	1,762

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, 2012	$	126	$	--	$	126
Increases to unrecognized tax benefits resulting from the generation of additional R&D credits		27		--		27
Balance of gross unrecognized tax benefits as of June 30, 2013	$	153	$	--	$	153