INCOME TAXES (Notes)

9 Months Ended

Mar. 31, 2018

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, 2014 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, 2014 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 nine months ended March 31, 2018, the Company recorded an income tax expense of $5,126 and $3,048,208, respectively, compared to income tax expense of $62,523 and $188,948 for the three and nine months ended March 31, 2017, respectively. The income tax expense for the nine months ended March 31, 2018 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. There was no tax expense in the three months ended March 31, 2018, related to the change in federal statutory tax rate. Income tax expense for the three and nine months ended March 31, 2018, also includes $187,846 and $2,429,235, respectively, 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 March 31, 2018, and as of June 30, 2017. Any changes to the Company’s unrecognized tax benefits as of March 31, 2018, if recognized, would impact the effective tax rate.