INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2013

Income Taxes Tables

Companys net income tax provisions (benefits) (In Thousands)

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

	For the Year Ended June 30,
	2013			2012
Current:
Federal	$	-		$	-
State		2			8
Foreign		(956	)		(473	)
	$	(954	)	$	(465	)
Deferred:
Federal	$	-		$	-
State		-			-
Foreign		694			400
		694			400
Total provision	$	(260	)	$	(65	)

Reconciliation between the U.S. federal tax rate and the effective income tax rate (In Thousands)

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

	For the Year Ended June 30,
	2013			2012
Statutory federal tax rate		(34	)%		(34	)%
State taxes, net of federal benefit		(6	)%		(6	)%
Foreign tax related to profits making subsidiaries		(1	)%		36	%
Other		5	%		3	%
Changes in valuation allowance		0	%		0	%
Effective rate		(41	)%		(1	)%

Deferred income tax assets (liabilities)

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

	For the Year Ended June 30,
	2013			2012
Deferred tax assets:
Net operating losses and credits	$	956		$	1,086
Inventory valuation		99			99
Depreciation		-			-
Provision for bad debts		3			53
Accrued vacation		16			15
Accrued expenses		135			147
Other		3			24
Total deferred tax assets	$	1,212		$	1,424
Deferred tax liabilities:
Accrued expenses	$	-		$	(251	)
Depreciation		(193	)		(715	)
Other		-			-
Total deferred income tax liabilities	$	(193	)	$	(966	)
Subtotal	$	1,019		$	458
Valuation allowance		(1,208	)		(1,342	)
Net deferred tax liabilities	$	(191	)	$	(884	)