Income Taxes

6 Months Ended

Dec. 31, 2011

Income Tax Disclosure [Text Block]

Note 18: Income Taxes

	Three Months Ended December 31,										Six Months Ended December 31,
	2011					2010					2011					2010
	Amount		Tax Rate %			Amount		Tax Rate %			Amount		Tax Rate %			Amount		Tax Rate %
Income tax expense	$	823		11	%	$	111		2	%	$	1,609		10	%	$	754		8	%

Income tax expense for the three and six months ended December 31, 2011 and 2010 related primarily to foreign and state income tax expense. There was no current United States (“U.S.”) federal income tax expense due to our net operating loss (“NOL”) carryforwards and the valuation allowance on those NOL’s. During fiscal 2011, we also recognized $725 of tax benefit from an adjustment of valuation allowances on our deferred tax assets associated with the Richmond asset acquisition. The Company is subject to U.S. federal income tax as well as income tax in multiple state and foreign jurisdictions. The Company is no longer subject to U.S. federal income tax audit or tax adjustments for years prior to June 30, 2007, except to the extent there are NOL’s and credits arising from any of those years. Those years are subject to audit at the time the NOL or credit is utilized. The Company is no longer subject to state and foreign income tax audit or tax adjustments for years prior to June 30, 2006.

We utilize the asset and liability method of accounting for income taxes. The Company records deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and recent financial performance. Based upon the Company’s review of all positive and negative evidence, including our three year U.S. cumulative pre-tax book loss and taxable loss, we concluded that a full valuation allowance should continue to be recorded against our U.S. net deferred tax assets at December 31, 2011. In the future, if we determine that it is more likely than not that we will realize our U.S. net deferred tax assets, we will reverse the applicable portion of the valuation allowance and recognize an income tax benefit in the period during which such determination is made.

In the normal course of business, we provide for uncertain tax positions and adjust our unrecognized tax benefits or liabilities accordingly. For the three and six months ended December 31, 2011, we recognized additional liability of $523 for changes in our tax positions. We are not aware of any tax positions that would create a material adjustment to the unrecognized tax benefits during the next twelve months.