Income Taxes

3 Months Ended

Sep. 30, 2011

Income Taxes

Income Taxes

11.       Income Taxes

We utilize the asset and liability method of accounting for income taxes. We recognize deferred tax liabilities or assets for the expected future tax consequences of temporary differences between the book and tax basis of assets and liabilities. We recognize accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense.

         As of June 30, 2011, the liability for gross unrecognized tax benefits was $15,000.  During the three-month period ended September 30, 2011, there were no significant changes to the total gross unrecognized tax benefits.  It is expected that the amount of unrecognized tax benefits for positions which we have identified will not change significantly in the next twelve months. 

We file income tax returns in the United States (U.S.) federal jurisdiction as well as various state jurisdictions. We are subject to U.S. federal income tax examinations by tax authorities for fiscal years after 1996. We may also be subject to state income tax examinations whose regulations vary by jurisdiction.