Income Taxes (Tables)

12 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

The income tax expense for the fiscal years ended June 30, 2018, 2017 and 2016 consists of the following (in thousands):

	Year ended June 30,
	2018		2017			2016
Income Before Income Taxes:
Domestic	$	8,234	$	1,642		$	7,518
International	1,315		1,268			1,166
	$	9,549	$	2,910		$	8,684
Current Taxes:
Federal	$	2,413	$	1,324		$	4,180
State	407		137			561
Foreign	150		510			455
Total Current Income Tax Provision	$	2,970	$	1,971		$	5,196
Deferred Taxes:
Federal	$	377	$	(473	)	$	(2,326	)
State	59		(21		)	(105		)
Foreign	381		(175		)	(187		)
Total Deferred Income Tax Provision	$	817	$	(669	)	$	(2,618	)
Net Income Tax Provision	$	3,787	$	1,302		$	2,578

The Company has recorded the following items as part of its fiscal 2018 income tax provision (in thousands):

Revalue of Deferred Tax Assets for the Corporate Tax Rate Change	$	1,419
Deemed Repatriation Tax on All Untaxed Offshore Earnings	$	—

The Effective Income Tax Rate Differs from the U.S. Federal Statutory Income Tax Rate

The effective income tax rate for the fiscal years ended June 30, 2018, 2017 and 2016 differs from the U.S. Federal statutory income tax rate due to the following:

	Year ended June 30,
	2018		2017		2016
Federal statutory income tax rate	28.0	%	34.0	%	35.0	%
State income taxes, net of federal benefit	2.5	%	5.9	%	2.8	%
Foreign tax rate difference	1.6	%	(4.6	)%	(2.3	)%
Tax return to provision true-up	(7.4	)%	0.6	%	0.7	%
Other differences	0.2	%	(2.1	)%	0.0	%
Revalue of deferred for change in federal tax rate	14.9	%	0.0	%	0.0	%
Permanent differences:
— stock based compensation	0.7	%	4.6	%	0.9	%
— domestic production activities deduction	(1.5	)%	(3.3	)%	(4.4	)%
— tax credits	(1.3	)%	(0.9	)%	(0.7	)%
— meals and entertainment	0.9	%	3.4	%	1.0	%
— penalties	0.1	%	1.5	%	0.0	%
— other	0.9	%	4.3	%	(3.9	)%
Change in valuation allowance	0.1	%	1.3	%	0.6	%
Net income tax provision	39.7	%	44.7	%	29.7	%

The Components of the Deferred Tax Assets and Liabilities

The components of the deferred tax assets and liabilities as of June 30, 2018 and 2017 are as follows (in thousands):

	June 30,
	2018			2017
Deferred tax assets:
Federal, state, and foreign net operating loss carryovers	$	574		$	536
Stock option compensation	1,367			1,531
Accrued vacation, allowance for returns, bonuses & other	2,615			3,173
Gross deferred tax asset	$	4,556		$	5,240
Deferred tax liabilities:
Patents and trademarks	$	(145	)	$	(253	)
Property & equipment	(823		)	(588		)
Other	(13		)	—
Gross deferred tax liabilities	(981		)	(841		)
Less: valuation allowance	(320		)	(312		)
Deferred tax assets, net	$	3,255		$	4,087