INCOME TAXES (Notes)

6 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The Company files income tax returns in the United States federal jurisdiction and in several state jurisdictions.  The statute of limitations for the Company’s federal tax returns for tax years beginning July 1, 2013 or later are open.  For states in which the Company files state income tax returns, the statute of limitations is generally open for tax years ended June 30, 2013 and forward.

On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (“the Tax Act”) was signed. The Tax Act significantly changed the income tax environment for US corporations, including the reduction of the US federal corporate tax rate from 35% to 21%. Accordingly, we remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21%. For the three and six months ended December 31, 2017, the Company recorded an income tax expense of $3,022,617 and $3,043,082, compared to income tax expense of $82,494 and $126,425 for the three and six months ended December 31, 2016. The income tax expense for the three and six months ended December 31, 2017 includes $713,826 for the write-down of deferred income taxes due to the change in federal statutory tax rate as a result of the passage of the Tax Act. Income tax expense for the three and six months ended December 31, 2017 also includes $2,241,389 related to the recording of a valuation allowance for all deferred tax assets. The valuation allowance was recorded due to uncertainty of the realizability of the deferred tax assets.

The Company does not believe it has any unrecognized tax benefits as of December 31, 2017 and as of June 30, 2017. Any changes to the Company’s unrecognized tax benefits as of December 31, 2017, if recognized, would impact the effective tax rate.