Income Taxes (Tables)

12 Months Ended

Jun. 30, 2022

Schedule of Components of Income Tax Expense

The income tax expense for the fiscal years ended June 30, 2022, 2021 and 2020 consists of the following (in thousands):


	Year ended June 30,
	2022		2021		2020
Income Before Income Taxes:
Domestic	$	1,613	$	15,233	$	12,817
International	3,078		1,999		1,844
	$	4,691	$	17,232	$	14,661
Current Taxes:
Federal	$	255	$	2,146	$	1,297
State	237		510		332
Foreign	1,195		730		1,113
Total Current Income Tax Provision	$	1,687	$	3,386	$	2,742
Deferred Taxes:
Federal	$	(391)	$	897	$	316
State	(43)		197		71
Foreign	318		(142)		(17)
Total Deferred Income Tax Provision	$	(116)	$	952	$	370
Net Income Tax Provision	$	1,571	$	4,338	$	3,112

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, 2022, 2021 and 2020 differs from the U.S. Federal statutory income tax rate due to the following:


	Year ended June 30,
	2022		2021		2020
Federal statutory income tax rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal benefit	0.1	%	3.6	%	3.8	%
Foreign tax rate difference	12.9	%	2.1	%	1.4	%
Tax return to provision true-up	(4.3)	%	(0.7)	%	0.0	%
Limit on future stock compensation due to 162(m)	0.1	%	1.7	%	2.3	%
Foreign withholding tax	1.3	%	0.4	%	3.3	%
Other differences	1.0	%	1.5	%	1.9	%
Revalue of deferred for change in federal tax rate	0.1	%	0.1	%	(0.1)	%
Permanent differences:
— stock based compensation	3.9	%	(2.3)	%	(13.6)	%
— current year section 162(m) limitation	0.0	%	0.0	%	1.6	%
— foreign derived intangible income deduction	(6.5)	%	(0.6)	%	(0.5)	%

— tax credits	(16.0)	%	(1.4)	%	(2.3)	%
— meals and entertainment	0.1	%	0.1	%	0.4	%
— removal of permanent reinvestment assertion in Japan	4.6	%	0.0	%	0.0	%
— other permanent differences	2.2	%	0.9	%	1.8	%
Change in valuation allowance	13.1	%	(1.2)	%	0.2	%
Net income tax provision	33.5	%	25.2	%	21.2	%

Schedule of The Components of the Deferred Tax Assets and Liabilities

The components of the deferred tax assets and liabilities as of June 30, 2022 and 2021 are as follows (in thousands):


	June 30,
	2022		2021
Deferred tax assets:
Federal, state, and foreign net operating loss carryovers	$	292	$	271
Stock option compensation	232		444
Accrued vacation, allowance for returns, bonuses & other	3,923		2,104
Gross deferred tax asset	$	4,447	$	2,819

Deferred tax liabilities:
Patents and trademarks	$	(78)	$	(99)

Property & equipment	(1,996)		(1,250)
Other	(409)		(189)
Gross deferred tax liabilities	(2,483)		(1,538)
Less: valuation allowance	(675)		(73)
Deferred tax assets, net	$	1,289	$	1,208

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,
	2022		2021
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	—		—
Settlement	—		—
Lapse of statute of limitations	—		—
Currency adjustment	—		—
Unrecognized tax benefits, end of period	$	—	$	—