INCOME TAXES

9 Months Ended

Mar. 31, 2016

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 10:- INCOME TAXES

a. Taxes on income (tax benefit) are comprised as follows:

	Three months ended March 31,					Nine months ended March 31,
	2016			2015		2016			2015
	Unaudited					Unaudited
Current year taxes	$	1,069		$	398	$	2,380		$	1,146
Previous year taxes		-			-		(216	)		-
Deferred tax expense (income)		(100	)		-		(6,627	)		-
Taxes on income (tax benefit)	$	969		$	398	$	(4,463	)	$	1,146

b. Deferred income taxes:

Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

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

	March 31,		June 30,
	2016		2015
	(Unaudited)
Assets in respect of:
Carryforward tax losses	$	-	$	23,033
Research and Development carryforward expenses- temporary differences		4,488		5,173
Stock-based compensation		548		-
Other reserves		1,450		1,346
		6,486		29,552
Valuation allowance (1)		-		(29,552	)
Net deferred tax assets	$	6,486	$	-

(1) ASC 740 requires that deferred tax assets be reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company evaluated the net deferred tax assets for each separate tax entity. As of June 30, 2015, the Company concluded that it is not more likely than not that the net deferred tax assets will be realized and a full valuation allowance has been recorded against these assets. The Company's estimate of future book-taxable income considers available evidence, both positive and negative, about its operating businesses and investments, including an aggregation of individual projections for each significant operating business and investment, estimated apportionment factors for state and local taxing jurisdictions and includes all future years that the Company estimated it would have available net operating loss carryforwards.

During the second fiscal quarter of 2016, the Company determined that the positive evidence outweighs the negative evidence for deferred tax assets and concluded that these deferred tax assets are realizable on a "more likely than not" basis. This determination was mainly due to expected future results of positive operations and earnings history.