Income Taxes (Tables)

12 Months Ended

Jun. 30, 2021

Schedule of Components of Income Tax Expense

The income tax expense for the fiscal years ended June 30, 2021, 2020 and 2019 consists of the following (in thousands):


	Year ended June 30,
	2021		2020		2019
Income Before Income Taxes:
Domestic	$	15,233	$	12,817	$	6,596
International	1,999		1,844		2,634
	$	17,232	$	14,661	$	9,230
Current Taxes:
Federal	$	2,146	$	1,297	$	222
State	510		332		176
Foreign	730		1,113		833
Total Current Income Tax Provision	$	3,386	$	2,742	$	1,231
Deferred Taxes:
Federal	$	897	$	316	$	502
State	197		71		109
Foreign	(142)		(17)		(41)
Total Deferred Income Tax Provision	$	952	$	370	$	570
Net Income Tax Provision	$	4,338	$	3,112	$	1,801

Schedule of 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, 2021, 2020 and 2019 differs from the U.S. Federal statutory income tax rate due to the following:


	Year ended June 30,
	2021		2020		2019
Federal statutory income tax rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal benefit	3.6	%	3.8	%	3.1	%
Foreign tax rate difference	2.1	%	1.4	%	4.5	%
Tax return to provision true-up	(0.7)	%	0.0	%	(1.1)	%
Limit on future stock compensation due to 162(m)	1.7	%	2.3	%	2.6	%
Foreign withholding tax	0.4	%	3.3	%	0.0	%
Other differences	1.5	%	1.9	%	(0.1)	%
Revalue of deferred for change in federal tax rate	0.1	%	(0.1)	%	(0.6)	%
Permanent differences:
— stock based compensation	(2.3)	%	(13.6)	%	(7.7)	%
— current year section 162(m) limitation	0.0	%	1.6	%	0.0	%
— foreign derived intangible income deduction	(0.6)	%	(0.5)	%	(0.1)	%

— tax credits	(1.4)	%	(2.3)	%	(3.7)	%
— meals and entertainment	0.1	%	0.4	%	0.7	%
— other permanent differences	0.9	%	1.8	%	1.7	%
Change in valuation allowance	(1.2)	%	0.2	%	(0.8)	%
Net income tax provision	25.2	%	21.2	%	19.5	%

Schedule of The Components of the Deferred Tax Assets and Liabilities

The components of the deferred tax assets and liabilities as of June 30, 2021 and 2020 are as follows (in thousands):


	June 30,
	2021		2020
Deferred tax assets:
Federal, state, and foreign net operating loss carryovers	$	271	$	501
Stock option compensation	444		824
Accrued vacation, allowance for returns, bonuses & other	2,104		2,067
Gross deferred tax asset	$	2,819	$	3,392

Deferred tax liabilities:
Patents and trademarks	$	(99)	$	(117)

Property & equipment	(1,250)		(801)
Other	(189)		(59)
Gross deferred tax liabilities	(1,538)		(977)
Less: valuation allowance	(73)		(251)
Deferred tax assets, net	$	1,208	$	2,164

Schedule of Unrecognized Tax Benefits Roll Forward

The beginning balance, ending balance, and changes to the liability for uncertain tax positions for the fiscal years ending June 30, 2021 and 2020 are as follows (in thousands):


	June 30,
	2021		2020
Unrecognized tax benefits, beginning of period	$	480	$	—
Gross increases - tax positions in prior period	—		—
Gross decreases - tax positions in prior period	(480)		—
Gross increases - tax positions in current period	—		480
Settlement	—		—
Lapse of statute of limitations	—		—
Currency adjustment	—		—
Unrecognized tax benefits, end of period	$	—	$	480