6. INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Schedule of Income tax provision from continuing operations

Income tax provision for the years ended June 30, 2021, and 2020 consists of the following:

	Year Ended June 30,
	2021			2020
Current income tax expense (benefit):
Federal	$	4,217,883		$	33,039
State		(525	)		2,475
Foreign		256,636			–
		4,473,994			35,514
Deferred income tax expense (benefit):
Federal		142,242			1,323,265
State		155,410			(293,773	)
Foreign		267,649			315,295
		565,301			1,344,787
Provision for income taxes	$	5,039,295		$	1,380,301

Schedule of effective income tax rate

The provisions 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,
	2021			2020
Federal income tax, at statutory rate of 21% applied to earnings before income taxes and extraordinary items	$	4,929,611		$	1,533,352
State tax, net of federal tax benefit		125,237			128,406	)
Nondeductible expenses		22,688			(45,345	)
R&D credits		(56,950	)		(36,841	)
Global intangible low-taxed income		95,419			31,060
Foreign rate difference		39,146			74,256
Other		(13,523	)		53,943
Forgiveness of payroll protection plan loan		(102,333	)		–
Change in valuation allowance		–			(358,530	)
Provision (benefit) for income taxes	$	5,039,295		$	1,380,301

Schedule of deferred tax assets

Significant components of our deferred tax assets are as follows:

	June 30, 2021			June 30, 2020
Deferred tax asset:
Net operating losses	$	170,649		$	507,402
State tax		–			520
Lease accounting		7,035			10,078
Intangibles		84,831			38,154
Tax credits		133,451			346,091
Inventory reserve		30,591			103,450
Other, net		12,693			38,085
Total deferred tax assets		439,250			1,043,780
Deferred tax liabilities:
Deferred state taxes		(29,056	)		(61,692	)
State tax		(110	)		–
Fixed asset		(22,536	)		(43,900	)
Total deferred tax liabilities		(51,702	)		(105,592	)
Less valuation allowance		–			–
Net deferred tax asset	$	387,548		$	938,188

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, 2019	$	275,262
Gross increase		21,570
Balance as of June 30, 2020		296,832
Gross increase		38,427
Balance as of June 30, 2021	$	335,259