INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2012

Income Taxes Tables

Income or loss before income taxes and non-controlling interest

The summarized income or loss before income taxes and non-controlling interest in the U.S. and foreign countries for fiscal 2012 and 2011 were as follows:

	For the Year Ended June 30,
	2012			2011
U.S.	$	(206	)	$	(413	)
Foreign		(4,219	)		286
Total	$	(4,425	)	$	(127	)

Companys net income tax provisions (benefits)

On a consolidated basis, the Company’s net income tax provisions (benefits) were as follows:

	For the Year Ended June 30,
	2012			2011
Current:
Federal	$	-		$	-
State		8			2
Foreign		(473	)		428
	$	(465	)	$	430
Deferred:
Federal	$	-		$	-
State		-			-
Foreign		400			(235	)
	$	400		$	(235	)
Total provision	$	(65	)	$	195

Reconciliation between the U.S. federal tax rate and the effective income tax rate

The reconciliation between the U.S. federal tax rate and the effective income tax rate was as follows:

	For the Year Ended June 30,
	2012			2011
Statutory federal tax rate		(34	)%		(34)	%
State taxes, net of federal benefit		(6	)		(6)
Foreign tax related to profits making subsidiaries		36			64
Other		3			24
Changes in valuation allowance		0			107
Effective rate		(1	)%		155	%

Deferred income tax assets (liabilities)

The components of deferred income tax assets (liabilities) were as follows:

	For the Year Ended June 30,
	2012			2011
Deferred tax assets:
Net operating losses and credits	$	1,086		$	998
Inventory valuation		99			112
Depreciation		-			-
Provision for bad debts		53			2
Accrued vacation		15			12
Accrued expenses		(103	)		314
Other		24			(31	)
Total deferred tax assets	$	1,174		$	1,407
Deferred tax liabilities:
Depreciation		(714	)		(630	)
Other		(2	)		-
Total deferred income tax liabilities	$	(716	)	$	(630	)
Subtotal		458			777
Valuation allowance		(1,342	)		(1,261	)
Net deferred tax liabilities	$	(884	)	$	(484	)