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Income Taxes
 12 Months Ended
Jun. 30, 2018
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]
5.
Income Taxes
 
The provision for income taxes consists of the following:
 
 
 
2018
 
 
2017
 
 
2016
 
Current:
 
 
 
 
 
 
 
 
 
 
 
 
Federal
 
$
-
 
 
$
-
 
 
$
-
 
State
 
 
9,938
 
 
 
7,299
 
 
 
11,286
 
Total current
 
 
9,938
 
 
 
7,299
 
 
 
11,286
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred:
 
 
 
 
 
 
 
 
 
 
 
 
Federal
 
 
424,038
 
 
 
(625,953
)
 
 
(100,174
)
State
 
 
91,789
 
 
 
(84,424
)
 
 
(3,495
)
Valuation Allowance
 
 
(352,727
)
 
 
739,578
 
 
 
393,814
 
Total deferred
 
 
163,100
 
 
 
29,201
 
 
 
290,145
 
 
 
$
173,038
 
 
$
36,500
 
 
$
301,431
 
 
A reconciliation of income taxes, with the amounts computed at the statutory federal rate is as follows:
 
 
 
2018
 
 
2017
 
 
2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Computed tax at federal statutory rate
 
$
(555,261
)
 
$
(697,736
)
 
$
(681,156
)
State income taxes, net of federal tax (benefit) provision
 
 
(54,471
)
 
 
(49,124
)
 
 
(38,971
)
Non deductible expenses
 
 
9,775
 
 
 
15,491
 
 
 
13,915
 
Federal research credit
 
 
(16,880
)
 
 
(9,661
)
 
 
(15,144
)
Net operating loss carryforward adjustment 
 
 
 131,244
 
 
 
 -
 
 
 
-
 
Book tax depreciation adjustment
 
 
-
 
 
 
-
 
 
 
517,736
 
State NOLs
 
 
(39,979
)
 
 
39,697
 
 
 
 
 
Stock Options - Expired
 
 
4,424
 
 
 
15,308
 
 
 
122,508
 
Changes resulting from new tax law
 
 
1,080,362
 
 
 
-
 
 
 
-
 
Other, net
 
 
(33,449
)
 
 
(17,053
)
 
 
(11,271
)
Valuation Allowance
 
 
(352,727
)
 
 
739,578
 
 
 
393,814
 
Total
 
$
173,038
 
 
$
36,500
 
 
$
301,431
 
 
On December 22, 2017, President Trump signed into law new tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “TCJA”), which became effective 
on that date.
 The TCJA significantly revises U.S. tax law by lowering the U.S. federal statutory income tax rate from 35% to 21
% effective January 1, 2018
.
 
ASC Topic 740, requires the effects of changes in tax laws to be recognized in the period in which the legislation is enacted. Accordingly, in the second quarter of fiscal 2018, the Company recorded a one-time charge of $136,386 within its income tax provision in connection with the TCJA
. The net expense
of
$136,386 relates
to revaluation of the Company’s valuation allowance.
 
The deferred tax assets and deferred tax liabilities recorded on the balance sheet as of June 30, 2018 and 2017 are as follows:
 
 
 
2018
 
 
2017
 
 
 
 
 
 
 
 
Deferred tax assets
 
 
 
 
 
 
 
 
Bad debts
 
$
25,500
 
 
$
38,500
 
Intangible assets
 
 
2,530
 
 
 
4,620
 
Accrued liabilities
 
 
257,692
 
 
 
347,079
 
Accrued pension liability
 
 
-
 
 
 
18,031
 
Stock options
 
 
30,411
 
 
 
52,211
 
Net operating loss and credit carryforwards
 
 
3,511,943
 
 
 
4,554,491
 
Total Assets
 
 
3,828,076
 
 
 
5,014,932
 
 
 
 
 
 
 
 
 
 
Deferred tax liabilities
 
 
 
 
 
 
 
 
Prepaid expenses
 
 
11,606
 
 
 
9,179
 
Inventory
 
 
697,669
 
 
 
1,057,326
 
Depreciation
 
 
317,360
 
 
 
628,017
 
Other
 
 
81,186
 
 
 
84,328
 
Total Liabilities
 
 
1,107,821
 
 
 
1,778,850
 
Valuation Allowance
 
 
(2,199,592
)
 
 
(2,552,319
)
Total deferred taxes
 
$
520,663
 
 
$
683,763
 
 
At June 30, 2018, there were $13.2 million dollars of federal net operating loss carryforwards which will expire in 2031 through 2038. In addition, the Company has state tax net operating losses of approximately $7.9 million that expire in varying years from 2018 through 2038.
 
The Company files a federal and multiple state income tax returns. With few exceptions the Company’s federal and state income tax returns are open for fiscal years ending after June 30, 2015.
 
The Company has not taken any uncertain tax positions on its federal or state income tax filings for open tax years.