Income Taxes (Tables)

12 Months Ended

Jun. 30, 2017

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes for the years ended June 30, 2017 and 2016 consists of the following:



	2017			2016
Current income tax (benefit) provision
Federal	$	—		$	—
State	—			—
	—			—
Deferred income tax provision
Federal	125,468			241,250
State	22,142			42,575
Change in valuation allowance	(147,610		)	(283,825		)
	—			—
Income tax (benefit)	$	—		$	—

Schedule of Effective Income Tax Rate Reconciliation

Income taxes (benefit) as a percentage of income (loss) for the years ended June 30, 2017 and 2016 differ from statutory federal income tax rate due to the following:



	2017		2016
Statutory federal income tax rate	34.00	%	34.00	%
Increase in deductable timing differences	11.00	%	7.00	%
Net operating loss carryforward	(45.00	)%	(41.00	)%
Effective income tax rate	0.00	%	0.00	%

Schedule of Deferred Tax Assets and Liabilities

The components of the net deferred income tax assets and liabilities as of June 30, 2017 and 2016 are as follows:



	2017			2016
Deferred income tax assets:
Net operating loss carryforward	$	11,323,998		$	11,222,477
Executive post retirement costs	306,421			318,743
General business credit	207,698			207,698
Allowance for doubtful accounts	58,521			68,910
Accrued vacation	89,477			105,816
Inventory reserve	117,985			67,361
Accelerated depreciation	38,492			16,340
Warranty reserve	10,907			10,907
Total deferred income tax assets	12,153,499			12,018,252
Valuation allowance	(12,060,831		)	(11,913,221		)
	92,668			105,031
Deferred income tax liabilities:
Accelerated depreciation	(92,668		)	(105,031		)
Total deferred income tax liabilities	(92,668		)	(105,031		)
	$	—		$	—