NOTE 9:- INCOME TAXES

Taxes on income are comprised as follows:

	Three months ended September 30,
	2016		2015
	Unaudited

Current year taxes	$	835	$	370
Deferred tax expense		2,179		-

Taxes on income	$	3,014	$	370

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:

	September 30,		June 30,
	2016		2016
	(Unaudited)

Assets in respect of:

Carryforward tax losses	$	1,059	$	4,186
Research and Development carryforward expenses- temporary differences		698		743
Other reserves		2,370		1,367

Net deferred tax assets	$	4,127	$	6,296

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.