Income Taxes (Tables)

12 Months Ended

Jun. 30, 2020

The provision for (benefit from) income taxes consists of the following:


	2020		2019		2018
Current:
Federal	$	84,420	$	—	$	—
State		23,093		10,676		9,938
Less net operating loss carryforward applied		(98,996)		—		—
Total current		8,517		10,676		9,938

Deferred:
Federal		(182,517)		(451,591)		424,038
State		4,405		(65,877)		91,789
Valuation Allowance		39,236		536,240		(352,727)
Total deferred		(138,876)		18,772		163,100
Provision (benefit)	$	(130,359)	$	29,448	$	173,038

A reconciliation of income taxes, with the amounts computed at the statutory federal rate is as follows:


	2020		2019		2018

Computed tax at federal statutory rate	$	(662,125)	$	(436,850)	$	(555,261)
State income taxes, net of federal tax (benefit) provision		(17,475)		(61,974)		(54,471)
Non deductible expenses		506,798		7,699		9,775
Federal research credit		(31,076)		(22,906)		(16,880)
Net operating loss carryforward adjustment		—		—		131,244
State NOLs		30,397		6,772		(39,979)
Stock Options - Expired		3,763		2,536		4,424
Changes resulting from the TCJA		—		—		1,080,362
Other, net		123		(2,069)		(33,449)
Valuation Allowance		39,236		536,240		(352,727)
Total	$	(130,359)	$	29,448	$	173,038

The deferred tax assets and deferred tax liabilities recorded on the balance sheet as of June 30, 2020 and 2019 are as follows:


	2020		2019

Deferred tax assets
Bad debts	$	25,500	$	25,500
Intangible assets		1,340		1,935
Accrued liabilities		491,605		262,970
Stock options		25,276		28,568
Net operating loss and credit carryforwards		3,807,811		3,914,655
Total Assets		4,351,532		4,233,628

Deferred tax liabilities
Prepaid expenses		10,587		10,937
Inventory		614,184		652,251
Depreciation		194,920		233,142
Other		116,007		99,575
Total Liabilities		935,698		995,905
Valuation Allowance		(2,775,069)		(2,735,832)
Total deferred taxes	$	640,765	$	501,891