Income Taxes (Tables)

12 Months Ended

Jun. 30, 2024

Income Taxes

Schedule of income before income taxes attributable to domestic and foreign operations

	For the Year ended June 30,
	2024		2023		2022
Domestic	$	6,936	$	4,926	$	6,461
Foreign		49,450		26,302		15,385
Total	$	56,386	$	31,228	$	21,846

Schedule of provision for income taxes

The provision for income taxes is comprised of the following (in thousands):

	For the Year ended June 30,
	2024		2023		2022
Current income taxes:
Federal	$	8,329	$	5,899	$	2,161
State		1,015		1,020		300
		9,344		6,919		2,461
Deferred income taxes:
Federal		(2,367)		(2,334)		(214)
State		(409)		(484)		—
		(2,776)		(2,818)		(214)
Provision for income taxes	$	6,568	$	4,101	$	2,247

Schedule of effective income tax rate reconciliation

A reconciliation of the U.S. Federal statutory income tax rate to our actual effective tax rate on earnings before income taxes is as follows for the years ended June 30, (dollars in thousands):

	2024				2023				2022
			% of				% of				% of
			Pre-tax				Pre-tax				Pre-tax
	Amount		Income		Amount		Income		Amount		Income
Tax at Federal statutory rate	$	11,841	21.0	%	$	6,558	21.0	%	$	4,588	21.0	%
Increases (decreases) in taxes resulting from:
Meals and entertainment		66	0.1	%		48	0.2	%		29	0.1	%
State income taxes, net of Federal income tax benefit		935	1.7	%		436	1.4	%		238	1.1	%
Global intangible low-taxed income		5,259	9.3	%		2,739	8.8	%		1,697	7.8	%
R&D Credit		(632)	(1.1)	%		(661)	(2.1)	%		(554)	(2.5)	%
Executive Compensation		47	0.1	%		—	—	%		—	—	%
Foreign Source income not subject to Tax		(10,518)	(18.7)	%		(5,524)	(17.7)	%		(3,231)	(14.8)	%
Non-taxable debt extinguishment		—	—	%		—	—	%		(820)	(3.8)	%
Uncertain Tax Positions		78	0.1	%		63	0.2	%		20	0.1	%
Other, net		(508)	(0.9)	%		442	1.4	%		280	1.3	%
Effective tax rate	$	6,568	11.6	%	$	4,101	13.1	%	$	2,247	10.3	%

Schedule of deferred tax assets and liabilities

Deferred tax assets and deferred tax liabilities at June 30, 2024 and 2023 are as follows (in thousands):

	Deferred Tax Assets (Liabilities)
	2024		2023
Accounts receivable	$	8	$	22
Inventories		541		397
Accrued liabilities		676		857
Stock based compensation expense		452		250
Revenue reserves		439		333
Unrealized loss on marketable securities		136		124
Capitalized research and development cost		5,447		2,923
Other		2		4
Total Deferred Tax Assets	$	7,701	$	4,910
Valuation allowance		—		—
Deferred income tax assets, net of valuation allowance	$	7,701	$	4,910
Intangibles		(874)		(916)
Property, plant and equipment		(786)		(729)
Other deferred tax liabilities		(613)		(613)
Total Deferred Tax Liability	$	(2,273)	$	(2,258)
Net Deferred Tax Asset	$	5,428	$	2,652

Schedule of recognized tax benefits roll forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	2024		2023		2022
Balance of gross unrecognized tax benefits as of Beginning of Year	$	700	$	678	$	678
Increase to unrecognized tax benefits resulting from a state filing tax position		—		22		—
Balance of gross unrecognized tax benefits as of End of Year	$	700	$	700	$	678