Provision (Benefit) for Income Taxes (Tables)

12 Months Ended

Jun. 30, 2022

Schedule of components of the provision for income taxes

A summary of the components of the provision (benefit) for income taxes for the years ended June 30, 2022 and 2021 is as follows:

	2022		2021
Current tax expense (benefit) - federal	$	313,705	$	(122,221	)
Current tax expense (benefit) - state		4,978		(37	)
Deferred tax expense (benefit)		9,271		(64,396	)
Provision (benefit) for income taxes	$	327,954	$	(186,654	)

Schedule of effective income tax rates

The combined U.S. federal and state effective income tax rates of 20.6% and 50.7%, for 2022 and 2021 respectively, differed from the statutory U.S. federal income tax rate for the following reasons:

	2022			2021
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		0.3			0.1
ESOP cost versus Fair Market Value		(1.3	)		1.3
Dividend on allocated ESOP shares		(3.1	)		25.9
Stock-based compensation		4.0			(6.7	)
Foreign Derived Intangible Income Deduction		—			—
Rate Differential on Net Operating Loss Carryback		(0.1	)		10.5
Other		(0.2	)		(1.4	)
Effective tax rate		20.6	%		50.7	%

Schedule of deferred tax assets and liabilities

For the years ended June 30, 2022 and 2021 deferred income tax expense (benefit) of $9,271 and ($64,396), 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, 2022 and 2021 are presented as follows:

	2022			2021
Deferred tax assets:
Accrued expenses	$	204,774		$	186,339
ESOP		14,237			2,190
Stock-based compensation		33,719			59,659
Inventory - effect of uniform capitalization		—			46,197
Total deferred tax assets	$	252,730		$	294,385
Deferred tax liability:
Property, plant and equipment - principally due to differences in depreciation methods	$	374,566		$	422,771
Inventory - effect of uniform capitalization		19,276			—
Prepaid expenses		36,716			40,171
Total deferred tax liability	$	430,558		$	462,942

Net deferred tax liability	$	(177,828	)	$	(168,557	)