INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2024

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, 2024			June 25, 2023
Current - Federal	$	—		$	—
Current - State		(33	)		(107	)
Deferred - Federal		(530	)		(394	)
Deferred - State		(56	)		(36	)
Provision for income taxes	$	(619	)	$	(537	)

Effective Income Tax Rate Reconciliation

The effective income tax rate varied from the statutory rate for the fiscal years ended June 30, 2024 and June 25, 2023 as reflected below (in thousands):

	June 30, 2024			June 25, 2023
Federal income taxes based on a statutory rate of 21%	$	(649	)	$	(452	)
State income taxes (net of federal benefit)		(82	)		(119	)
Permanent adjustments		128			(7	)
Return to provision		(16	)		49
Other		—			(8	)
Provision for income taxes	$	(619	)	$	(537	)

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, 2024		June 25, 2023
Allowance for bad debt	$	13	$	13
Deferred fees		58		49
Other reserves and accruals		475		619
Operating lease liabilities		222		330
Credit carryforwards		156		156
Net operating loss carryforwards		4,057		4,521
Total deferred tax assets	$	4,981	$	5,688

Right-of-use asset		(190	)		(285	)
Other deferred tax liabilities		(35	)		(61	)
Total deferred tax liabilities	$	(225	)	$	(346	)

Net deferred tax asset $ 4,756 $ 5,342