Income Taxes (Tables)

12 Months Ended

Jun. 30, 2021

The provision for income taxes includes the following:

	For the years ended June 30,
(in thousands)	2021		2020
Current	$	1,608	$	8
Deferred	$	205	$	36
Total	$	1,813	$	44

Reconciliation of Expected Federal Income Tax Expense

The following table reconciles the expected corporate federal income tax, computed by multiplying the Company's loss before income taxes by the statutory tax rate of 21% to the total tax expense.

	For the years ended June 30,
(in thousands)	2021			2020
Federal tax benefit at statutory rate	$	(1,578	)	$	(2,747	)
State taxes net of federal impact		(358	)		(459	)
Permanent adjustments		32			33
Change in valuation allowance		(95,038	)		(33,929	)
Provision to return true-up		(61	)		182
Deferred remeasurement		(196	)		-
Net operating loss and credit expirations		99,071			36,724
Stock compensation adjustment		(53	)		156
Other		(6	)		84
Total tax expense	$	1,813		$	44

Schedule of Tax Effect of Temporary Differences of Deferred Tax Assets and Liabilities

The tax effect of temporary differences that give rise to significant portions of the Company's deferred tax assets and liabilities are as follows:

	As of June 30,
(in thousands)	2021			2020
Deferred Tax Assets:
Net operating loss carryforwards	$	217,216		$	322,602
Accruals and allowances not deductible for tax purposes		1,411			2,990
Stock based compensation		621			594
Unrealized loss on investment		5,326			5,422
Lease liability		1,436			1,430
Deferred Gain		11,482			-
Interest expense carryforward		-			1,111
Total deferred tax assets, gross	$	237,492		$	334,149
Less: valuation allowance	$	(231,777	)	$	(325,943	)
Total deferred tax assets, net	$	5,715		$	8,206
Deferred Tax Liabilities:
Right to use asset	$	(1,348	)	$	(1,372	)
Acquired intangibles		(207	)		(1,879	)
Convertible debt discount		(2,990	)		(3,123	)
Lease receivable		-			(385	)
Goodwill		(1,696	)		(1,055	)
Acquired indefinite lived assets		-			(713	)
Total deferred tax liabilities	$	(6,241	)	$	(8,527	)

Total deferred tax liabilities, net (indefinite-lived assets)	$	(526	)	$	(321	)

Schedule of Federal Net Operating Loss Carryforwards

The following table reflects federal NOL carryforwards that will expire beginning in the fiscal year ended June 30, 2022 (in thousands):

Fiscal Year of Expiration	Federal NOL carryforwards
2022	$	143,137
2023		131,077
2024		60,132
2025		117,277
2026 through 2037		486,542
Indefinite		13,436
Total	$	951,601

Schedule of Gross Unrecognized Tax Benefit Activity

During the 2021 and 2020 fiscal years, the total amount of gross unrecognized tax benefit activity was as follows (in thousands):

Balance as of June 30, 2019	$	50,454
Addition for tax positions of prior years		-
Reductions for tax positions of prior years		(94	)
Lapse of statute of limitations		(5,980	)
Balance as of June 30, 2020		44,380
Addition for tax positions of prior years		-
Reductions for tax positions of prior years		(93	)
Lapse of statute of limitations		(8,268	)
Balance as of June 30, 2021	$	36,019