Income Taxes (Tables)

12 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

Components of Income Tax Expense

The income tax expense for the fiscal years ended June 30, 2019, 2018 and 2017 consists of the following (in thousands):

	Year ended June 30,
	2019			2018		2017
Income Before Income Taxes:
Domestic	$	6,596		$	8,234	$	1,642
International	2,634			1,315		1,268
	$	9,230		$	9,549	$	2,910
Current Taxes:
Federal	$	222		$	2,413	$	1,324
State	176			407		137
Foreign	833			150		510
Total Current Income Tax Provision	$	1,231		$	2,970	$	1,971
Deferred Taxes:
Federal	$	502		$	377	$	(473	)
State	109			59		(21		)
Foreign	(41		)	381		(175		)
Total Deferred Income Tax Provision	$	570		$	817	$	(669	)
Net Income Tax Provision	$	1,801		$	3,787	$	1,302

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, 2019, 2018 and 2017 differs from the U.S. Federal statutory income tax rate due to the following:

	Year ended June 30,
	2019		2018		2017
Federal statutory income tax rate	21.0	%	28.0	%	34.0	%
State income taxes, net of federal benefit	3.1	%	2.5	%	5.9	%
Foreign tax rate difference	4.5	%	1.6	%	(4.6	)%
Tax return to provision true-up	(1.1	)%	(7.4	)%	0.6	%
Limit on future stock compensation due to 162(m)	2.6	%	0.0	%	0.0	%
Other differences	(0.1	)%	0.2	%	(2.1	)%
Revalue of deferred for change in federal tax rate	(0.6	)%	14.9	%	0.0	%
Permanent differences:
— stock based compensation	(7.7	)%	0.7	%	4.6	%
— foreign derived intangible income deduction	(0.1	)%	0.0	%	0.0	%
— domestic production activities deduction	0.0	%	(1.5	)%	(3.3	)%
— tax credits	(3.7	)%	(1.3	)%	(0.9	)%
— meals and entertainment	0.7	%	0.9	%	3.4	%
— penalties	0.1	%	0.1	%	1.5	%
— other	1.6	%	0.9	%	4.3	%
Change in valuation allowance	(0.8	)%	0.1	%	1.3	%
Net income tax provision	19.5	%	39.7	%	44.7	%

The Components of the Deferred Tax Assets and Liabilities

The components of the deferred tax assets and liabilities as of June 30, 2019 and 2018 are as follows (in thousands):

	June 30,
	2019			2018
Deferred tax assets:
Federal, state, and foreign net operating loss carryovers	$	448		$	574
Stock option compensation	1,262			1,367
Accrued vacation, allowance for returns, bonuses & other	2,672			2,615
Gross deferred tax asset	$	4,382		$	4,556
Deferred tax liabilities:
Patents and trademarks	$	(132	)	$	(145	)
Property & equipment	(1,194		)	(823		)
Other	(104		)	(13		)
Gross deferred tax liabilities	(1,430		)	(981		)
Less: valuation allowance	(259		)	(320		)
Deferred tax assets, net	$	2,693		$	3,255