Provision for Income Taxes (Tables)

12 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Schedule of components of the provision for income taxes

A summary of the components of the provision for income taxes for the years ended June 30, 2020 and 2019 is as follows:

	2020			2019
Current tax expense - federal	$	190,801		$	274,889
Current tax (benefit) expense - state		(1,158	)		6,010
Deferred tax (benefit) expense		(44,122	)		258,040
Provision for income taxes	$	145,521		$	538,939

Schedule of effective income tax rates

The combined U.S. federal and state effective income tax rates of 11.1% and 18.7%, for 2020 and 2019 respectively, differed from the statutory U.S. federal income tax rate for the following reasons:

	2020			2019
U.S. federal statutory income tax rate		21.0	%		21.0	%
Increase (reduction) in rate resulting from:
State franchise tax, net of federal income tax benefit		(0.1	)		0.2
ESOP cost versus Fair Market Value		1.6			1.3
Dividend on allocated ESOP shares		(14.5	)		(3.0	)
Stock-based compensation		3.0			0.2
Foreign Derived Intangible Income Deduction		(0.2	)		(0.3	)
Other		0.3			(0.7	)
Effective tax rate		11.1	%		18.7	%

Schedule of deferred tax assets and liabilities

For the years ended June 30, 2020 and 2019 deferred income tax benefit and expense of $44,122 and $258,040, respectively, results from the changes in temporary differences for each year. The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities as of June 30, 2020 and 2019 are presented as follows:

	2020			2019
Deferred tax assets:
Accrued expenses	$	171,880		$	164,388
ESOP		—			17,702
Stock-based compensation		56,280			56,382
Inventory - effect of uniform capitalization		74,352			64,148
Other		1,437			1,437
Total deferred tax assets	$	303,949		$	304,057
Deferred tax liability:
Property, plant and equipment - principally due
to differences in depreciation methods	$	503,009		$	541,150
Prepaid expenses		33,893			39,982
Total deferred tax liability	$	536,902		$	581,132
Net deferred tax liability	$	(232,953	)	$	(277,075	)