INCOME TAXES (Tables)

12 Months Ended

Jul. 01, 2023

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

Income tax benefit consists of the following:

	Fiscal Year Ended
	July 1, 2023		July 2, 2022
	(in thousands)
Current income tax provision (benefit):
United States	$	998	$	(2,179)
Foreign	2,134		2,012
	3,132		(167)
Deferred income tax provision (benefit):
United States	(2,130)		443
Foreign	141		38
	(1,989)		481
Total income tax provision	$	1,143	$	314

Schedule of Effective Tax Rate Reconciliation

The Company’s effective tax rate differs from the federal tax rate as follows:

	Fiscal Year Ended
	July 1, 2023		July 2, 2022
	(in thousands)
Federal income tax provision at statutory rates	$	1,322	$	775
State income taxes, net of federal tax effect	(25)		86
Foreign tax rate differences	137		336
Federal rate differences applied to net operating loss carryback	—		(593)
Effect of income tax credits	(1,020)		(920)
Previously unrecognized tax benefits	(75)		146
Inflation adjustments	118		178
Tax penalties & interest	—		179
Global Intangible Low-Taxed Income (GILTI) tax	33		59
Provision to return reconciliation	52		(91)
Equity compensation shortfall	73		104
Foreign Exchange Gains/Losses Unrealized for Tax Purposes	277		23
Other	251		32
Income tax provision (benefit)	$	1,143	$	314

Schedule of Income before Income Tax, Domestic and Foreign

The domestic and foreign components of income before income taxes were:

	Fiscal Year Ended
	July 1, 2023		July 2, 2022
	(in thousands)
Domestic	$	(1,086)	$	(2,890)
Foreign	7,386		6,581
Income before income taxes	$	6,300	$	3,691

Schedule of Deferred Tax Assets and Liabilities

Deferred income tax assets and liabilities consist of the following at:

	July 1, 2023		July 2, 2022
	(in thousands)
Deferred tax assets:
Net operating loss	$	—	$	486
Tax credit carryforwards, net	6,812		7,990
Inventory	267		247
Identifiable intangibles	308		370
Accruals	2,421		2,406
PPE	1,328		1,200
ASC 606 deferred costs	4,802		4,216
Lease liabilities	3,775		3,671
Interest expense deduction carryforward	977		580
Research and development expenses	3,860		—
Other	271		465
Deferred income tax assets	$	24,821	$	21,631
Deferred tax liabilities:
Accrued withholding tax - unremitted earnings	(754)		(754)
Right-of-use assets	(3,857)		(3,663)
Tax capital lease liabilities	(2,832)		(2,385)
ASC 606 accelerated revenue	(4,599)		(3,736)
Other	(799)		(1,102)
Deferred income tax liabilities	$	(12,841)	$	(11,640)
Net deferred income tax assets	$	11,980	$	9,991
Balance sheet caption reported in:
Long-term deferred income tax asset	$	12,254	$	10,055
Long-term deferred income tax liability	(274)		(64)
Net deferred income tax asset	$	11,980	$	9,991

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Fiscal Year Ended
	July 1, 2023		July 2, 2022
	(in thousands)
Beginning Balance	$	2,998	$	4,863
Additions based on tax positions related to the current year	120		286
Adjustment to prior year tax positions & amended tax returns	(15)		(2,296)
Lapse of statute of limitations	(75)		145
Ending Balance	$	3,028	$	2,998