Income Taxes (Tables)

12 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Schedule of sources of pretax income (loss)

Sources of Pretax Income (Loss) 

	Fiscal Years Ended
	June 30, 2023		June 30, 2022		June 30, 2021
	(In thousands)
Domestic	$	(52,636)	$	(53,258)	$	(38,867)
Foreign	(125)		(5,025)		(4,396)
Total	$	(52,761)	$	(58,283)	$	(43,263)

Components of the provision for income tax expense (benefit)

Components of the Provision for Income Tax Expense (Benefit)

	Fiscal Years Ended
	June 30, 2023		June 30, 2022		June 30, 2021
	(In thousands)
Current:
Federal	$	(369)	$	230	$	(13,154)
State	(31)		28		465
Foreign	—		1		(239)
	(400)		259		(12,928)
Deferred:
Federal	—		2,504		774
State	—		2,858		(291)
Foreign	—		(4)		406
	—		5,358		889
	$	(400)	$	5,617	$	(12,039)

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, 2023		June 30, 2022		June 30, 2021
	(In thousands)
Expected benefit for federal income taxes at the statutory rate	$	(11,080)	$	(12,239)	$	(9,085)
State income taxes, net of federal benefit	(2,320)		(1,971)		(1,240)
Impairment of non-deductible goodwill(1)	—		1,132		—
Charges without tax benefit	358		265		961
Change in valuation allowance(2)	12,595		17,943		2,797
Excess tax expense (benefit) on stock-based compensation	1,216		1,019		1,826
Research and development and other tax credits	(1,175)		(613)		(1,707)
Foreign tax differential	50		(232)		(96)
Federal rate differential net operating loss carryback(3)	—		141		(5,223)
Change in uncertain tax positions	(90)		(120)		(7)
Other	46		292		(265)
Provision (benefit) for federal, state and foreign income taxes	$	(400)	$	5,617	$	(12,039)

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

(2)Due to the existence of a cumulative loss over a three-year period, we recorded a full valuation allowance against our deferred tax assets in fiscal 2022 and recorded additional valuation allowances against newly generated deferred tax assets in fiscal 2023. 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 history of cumulative losses for a subsidiary.

(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, 2023		June 30, 2022
	(In thousands)
Deferred tax assets:
Accruals and reserves	$	504	$	1,534
Bad debt reserve	273		340
Insurance reserve	913		1,035
Net operating loss benefit and credit carryforwards	26,888		23,717
Accrued compensation and pension	964		1,051
Stock compensation expense on nonvested restricted stock units	1,794		1,910
Book over tax amortization	7,218		5,449
Deferred FICA	—		1,427
Research and development capitalization	6,592		—
Foreign currency translation and other	1,608		1,002
Valuation allowance	(41,060)		(28,615)
Total deferred tax assets	5,694		8,850
Deferred tax liabilities:
Tax over book depreciation	5,472		7,842
Other	248		1,034
Total deferred tax liabilities	5,720		8,876
Net deferred tax liability	$	(26)	$	(26)

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, 2023		June 30, 2022
	(In thousands)
Deferred income tax assets	$	—	$	—
Deferred income tax liabilities	(26)		(26)
Net deferred tax liability	$	(26)	$	(26)

Summary of Operating Loss Carryforwards

Operating Loss and Tax Credit Carryforwards	Expiration Period	Amount (in thousands)
Federal net operating loss	Indefinite	$	38,606
Federal tax credits	June 2041 to June 2043	$	3,270
Federal foreign tax credits	June 2024 to June 2025	$	548
State net operating losses	June 2025 to indefinite	$	95,480
State tax credits	June 2033 to indefinite	$	984
Foreign net operating losses	June 2033 to June 2043	$	31,453
Foreign tax credits	June 2035 to June 2043	$	693