INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2019

INCOME TAXES [Abstract]

Provision for Income Taxes

Provision for income taxes from continuing operations consists of the following (in thousands):

	Fiscal Year Ended
	June 30, 2019			June 24, 2018
Current - Federal	$	-		$	(33	)
Current - Foreign		131			51
Current - State		15			30
Deferred - Federal		(189	)		(3,370	)
Deferred - State		(8	)		-
Provision for income taxes	$	(51	)	$	(3,322	)

Effective Income Tax Rate Reconciliation

The effective income tax rate varied from the statutory rate for the fiscal years ended June 30, 2019 and June 24, 2018 as reflected below (in thousands):

	June 30, 2019			June 24, 2018
Federal income taxes based on a statutory rate of 21.0% and 27.6%, repectively of pre-tax loss	$	(168	)	$	(291	)
State income tax, net of federal effect		93			51
Foreign taxes		15			30
Permanent adjustments		8			35
Rate change		-			3,416
Change in valuation allowance		-			(6,597	)
Other		1			34
	$	(51	)	$	(3,322	)

Deferred Tax Assets

The tax effects of temporary differences that give rise to the net deferred tax assets consisted of the following (in thousands):

	June 30, 2019			June 24, 2018
Current
Reserve for bad debt	$	48		$	36
Deferred fees		17			15
Other reserves and accruals		795			562
		860			613
Non Current
Credit carryforwards		156			152
Net operating loss carryforwards		5,206			5,122
Depreciable assets		263			17
Total gross deferred tax asset		6,485			5,904
Valuation allowance		(2,425	)		(2,425	)
Net deferred tax asset	$	4,060		$	3,479