Income Taxes (Tables)

12 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Schedule of sources of pretax income (loss)

Sources of Pretax Income (Loss) 

	Fiscal Years Ended
	June 30, 2022		June 30, 2021		June 30, 2020
	(In thousands)
Domestic	$	(53,258)	$	(38,867)	$	(32,660)
Foreign	(5,025)		(4,396)		(3,984)
Total	$	(58,283)	$	(43,263)	$	(36,644)

Components of the provision for income tax expense (benefit)

Components of the Provision for Income Tax Expense (Benefit)

	Fiscal Years Ended
	June 30, 2022		June 30, 2021		June 30, 2020
	(In thousands)
Current:
Federal	$	230	$	(13,154)	$	(376)
State	28		465		412
Foreign	1		(239)		23
	259		(12,928)		59
Deferred:
Federal	2,504		774		(5,000)
State	2,858		(291)		(1,091)
Foreign	(4)		406		2,462
	5,358		889		(3,629)
	$	5,617	$	(12,039)	$	(3,570)

Reconciliation between the expected income tax provision applying the domestic federal statutory tax rate and the reported income tax provision

Reconciliation Between the Expected Income Tax Provision Applying the Domestic Federal Statutory Tax Rate and the Reported Income Tax Provision 

	Fiscal Years Ended
	June 30, 2022		June 30, 2021		June 30, 2020
	(In thousands)
Expected benefit for federal income taxes at the statutory rate	$	(12,239)	$	(9,085)	$	(7,695)
State income taxes, net of federal benefit	(1,971)		(1,240)		(768)
Impairment of non-deductible goodwill(1)	1,132		—		1,813
Charges without tax benefit	265		961		1,707
Change in valuation allowance(2)	17,943		2,797		3,062
Excess tax expense (benefit) on stock-based compensation	1,019		1,826		230
Research and development and other tax credits	(613)		(1,707)		(1,724)
Foreign tax differential	(232)		(96)		(132)
Federal rate differential net operating loss carryback(3)	141		(5,223)		—
Change in uncertain tax positions	(120)		(7)		20
Other	292		(265)		(83)
Provision (benefit) for federal, state and foreign income taxes	$	5,617	$	(12,039)	$	(3,570)

(1)In fiscal 2022, we impaired $18.3 million of goodwill, which included $5.4 million of non-deductible goodwill. In fiscal 2020, we impaired $32.9 million of goodwill, which included $8.6 million of non-deductible goodwill. See Note 4 - Goodwill and Other Intangible Assets for more information about the impairments.

(2)In fiscal 2022, due to the existence of a cumulative loss over a three-year period, we recorded a full valuation allowance of $17.9 million against our deferred tax assets. These assets are primarily comprised of federal net operating losses, which have an indefinite carryforward, federal tax credits and state net operating losses. To the extent we generate taxable income in the future, or cumulative losses are no longer present and our future projections for growth or tax planning strategies are demonstrated, we will realize the benefit associated with the net operating losses for which the valuation allowance has been provided. In fiscal 2021, we placed $2.8 million of valuation allowances, including $1.5 million on certain state net operating loss carryforwards due to a recent history of cumulative losses for a subsidiary. In fiscal 2020, we placed $3.1 million of valuation allowances on net operating loss carryforwards and foreign tax credits primarily related to Canada.

(3)Relates to fiscal 2021 net operating losses carried back under provisions of the CARES Act to fiscal years 2016 and 2017 which had a 35% federal tax rate.

Significant components of the Company's deferred tax assets and liabilities

Significant Components of our Deferred Tax Assets and Liabilities

	June 30, 2022		June 30, 2021
	(In thousands)
Deferred tax assets:
Warranty reserve	$	206	$	206
Bad debt reserve	340		231
Paid-time-off accrual	315		747
Insurance reserve	1,019		1,229
Legal reserve	79		146
Net operating loss benefit and credit carryforwards	23,717		14,966
Accrued compensation and pension	736		690
Prepaid insurance	16		27
Stock compensation expense on nonvested deferred shares	1,910		1,895
Accrued losses	1,089		64
Restructuring reserve	160		725
Book over tax amortization	5,449		3,765
Deferred FICA	1,427		1,920
Foreign currency translation and other	1,002		665
Valuation allowance	(28,615)		(11,104)
Total deferred tax assets	8,850		16,172
Deferred tax liabilities:
Tax over book depreciation	7,842		10,315
Receivable holdbacks and other	1,034		596
Total deferred tax liabilities	8,876		10,911
Net deferred tax asset (liability)	$	(26)	$	5,261

Significant components of the Company's deferred tax assets and liabilities as reported in the Consolidated Balance Sheets

As reported in the Consolidated Balance Sheets:

	June 30, 2022	June 30, 2021
	(In thousands)
Deferred income tax assets	—	5,295
Deferred income tax liabilities	(26)	(34)
Net deferred tax asset (liability)	(26)	$	5,261

Summary of Operating Loss Carryforwards

Operating Loss and Tax Credit Carryforwards	Expiration Period	Amount (in thousands)
Federal net operating loss	Indefinite	$	27,207
Federal tax credits	June 2041 to June 2042	$	1,700
Federal foreign tax credits	June 2023 to June 2025	$	655
State net operating losses	June 2025 to indefinite	$	73,889
State tax credits	June 2033 to indefinite	$	912
Foreign net operating losses	June 2029 to June 2042	$	37,379
Foreign tax credits	June 2035 to June 2042	$	676