6. INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Schedule of Income tax provision from continuing operations

Income tax provision for the years ended June 30, 2020 and 2019 consists of the following:

	Year Ended June 30,
	2020			2019
Current income tax expense:
Federal	$	33,039		$	–
State		2,475			801
		35,514			801
Deferred income tax expense (benefit):
Federal		1,323,265			(345,083	)
State		(293,773	)		–
Foreign		315,295			(84,463	)
		1,344,787			(429,546	)
Provision (benefit) for income taxes	$	1,380,301		$	(428,745	)

Schedule of effective income tax rate

The provision (benefit) for income taxes reconciles to the amount computed by applying the effective federal statutory income tax rate to the income before provision for income taxes as follows:

	Year Ended June 30,
	2020			2019
Federal income tax (benefit), at statutory rate of 21% applied to earnings before income taxes and extraordinary items	$	1,533,352		$	(438,706	)
State tax, net of federal tax benefit		128,406			(50,881	)
Nondeductible expenses		(45,345	)		4,129
R&D credits		(36,841	)		(36,127	)
Global intangible low-taxed income		31,060			–
Foreign rate difference		74,256			40,660
Other		53,943			666
Rate reduction		–			51,514
Change in valuation allowance		(358,530	)		–
Provision (benefit) for income taxes	$	1,380,301		$	(428,745	)

Schedule of deferred tax assets

Significant components of our deferred tax assets are as follows:

	June 30, 2020			June 30, 2019
Deferred tax asset:
Net operating losses	$	507,402		$	1,767,365
State tax		520			169
Lease accounting		10,078			–
Intangibles		38,154			22,678
Tax credits		346,091			666,380
Inventory reserve		103,450			165,160
Other, net		38,085			44,853
Total deferred tax assets		1,043,780			2,666,605
Deferred tax liabilities:
Deferred state taxes		(61,692	)		–
Fixed asset		(43,900	)		(25,100	)
Total deferred tax liabilities		(105,592	)		(25,100	)
Less valuation allowance		–			(358,530	)
Net deferred tax asset	$	938,188		$	2,282,975

Schedule of unrecognized tax benefits

A reconciliation of the beginning and ending balance of unrecognized tax benefits, which have been considered in the Company's computation of its deferred tax assets, is as follows:

Balance as of June 30, 2018	$	242,187
Gross increase		33,075
Balance as of June 30, 2019		275,262
Gross increase		21,570
Balance as of June 30, 2020	$	296,832