Income Taxes

12 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Income Taxes

13. Income Taxes

The components of the Company’s overall deferred tax assets and liabilities are as follows:

	June 30,
	2020		2019
Deferred tax assets
Stock-based compensation	$	4,536	$	3,803
Deferred revenue	1,596		2,032
Accrued expenses and compensation	1,144		1,058
Other	2,150		1,062
Research and development credit carryforwards	6,006		5,161
Net operating loss carryforwards	71,925		65,628
Total deferred tax assets	87,357		78,744
Valuation allowance	(87,357)		(78,744)
Net deferred tax assets	$	—	$	—

The Company has established valuation allowances to fully offset its deferred tax assets due to the uncertainty about the Company’s ability to generate the future taxable income necessary to realize these deferred assets, particularly in light of the Company’s historical losses. The future use of net operating loss carryforwards is dependent on the Company attaining profitable operations, and may be limited in any one year under Internal Revenue Code Section 382 due to significant

ownership changes, as defined under such Section, as a result of the Company’s equity financings. A summary of the valuation allowances are as follows:

Balances at June 30, 2017	$	101,031
Reductions	(24,901)
Balance at June 30, 2018	76,130
Additions	2,614
Balance at June 30, 2019	78,744
Additions	8,613
Balance at June 30, 2020	$	87,357

As of June 30, 2020 and 2019, the Company had federal tax net operating loss carryforwards of approximately $296,409 and $269,433, respectively. These net operating loss carryforwards are available to offset taxable income through 2037. The Company also had various state net operating loss carryforwards available to offset future state taxable income. These state net operating loss carryforwards typically have the same expirations as the Company’s federal tax net operating loss carryforwards.

As of June 30, 2020 and 2019, the Company had approximately $5,039 and $4,314 of federal research and development credit carryforwards, respectively. As of June 30, 2020 and 2019, the Company had approximately $2,069 and $1,798 of state research and development credit carryforwards. The federal and state research and development credit carryforwards will expire through fiscal 2039 and 2034, respectively.

As required by ASC Topic 740, “Income Taxes,” the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more likely than not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company recorded a liability relating to unrecognized tax benefits of $711 and $611 at June 30, 2020 and 2019, respectively. Due to the Company having a full valuation allowance, this liability has been netted against the deferred tax asset. The Company recognizes interest and penalties related to uncertain tax provisions as part of the provision for income taxes. The Company has not currently reserved for any interest or penalties for such reserves due to the Company being in an net operating loss position. The Company does not expect to recognize any benefits from the unrecognized tax benefits within the next twelve months. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

Balances at June 30, 2017	$	570
Decreases related to prior year tax positions	(3)
Increases related to current year tax positions	30
Balances at June 30, 2018	597
Decreases related to prior year tax positions	(11)
Increases related to current year tax positions	25
Balance at June 30, 2019	611
Decreases related to prior year tax positions	36
Increases related to current year tax positions	64
Balance at June 30, 2020	$	711

The Company is subject to income taxes in the U.S. federal jurisdiction and various state jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. The Company is potentially subject to income tax examinations by tax authorities for the tax years ended June 30, 2020, 2019, 2018, and 2017. The Company is not currently under examination by any taxing jurisdiction.