6. INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

Schedule of Income tax provision from continuing operations

Income tax provision for the years ended June 30, 2019 and 2018 consists of the following:

	Year Ended June 30,
	2019			2018
Current income tax expense (benefit):
Federal	$	–		$	3,750
State		801			800
		801			4,550
Deferred income tax expense (benefit):
Federal		(345,083	)		(27,460	)
State		–			–
Foreign		(84,463	)		(164,063	)
		(429,546	)		(191,523	)
Benefit for income taxes	$	(428,745	)	$	(186,973	)

Schedule of effective income tax rate

The provision (benefit) for income taxes reconciles to the amount computed by applying the effective federal statutory income tax rate to the income before provision for income taxes as follows:

	Year Ended June 30,
	2019			2018
Federal tax benefit, at statutory rate of 21% for the year ended June 30, 2019 and 34% for the year ended June 30, 2018	$	(438,706	)	$	(799,696	)
State tax, net of federal tax benefit		(50,881	)		(54,642	)
Nondeductible expenses		4,129			6,753
R&D credits		(36,127	)		(36,733	)
Foreign rate difference		40,660			(54,332	)
Other		666			34,878
Rate reduction		51,514			661,629
Change in valuation allowance		–			55,170
Benefit for income taxes	$	(428,745	)	$	(186,973	)

Schedule of deferred tax assets

Significant components of our deferred tax assets are as follows:

	June 30, 2019			June 30, 2018
Deferred tax asset:
Net operating losses	$	1,767,365		$	1,417,549
State tax		169			169
Intangibles		22,678			44,200
Tax credits		666,380			589,206
Inventory reserve		165,160			76,663
Other, net		44,853			48,687
Total deferred tax assets		2,666,605			2,176,474
Deferred tax liabilities:
Fixed asset		(25,100	)		(17,123	)
Total deferred tax liabilities		(25,100	)		(17,123	)
Less valuation allowance		(358,530	)		(305,922	)
Net deferred tax asset	$	2,282,975		$	1,853,429

Schedule of unrecognized tax benefits

A reconciliation of the beginning and ending balance of unrecognized tax benefits, which have been considered in the Company's computation of its deferred tax assets, is as follows: 

Balance as of June 30, 2017	$	221,145
Gross increase		35,894
Relief of ASC 740 reserve/adjustment		(14,852	)
Balance as of June 30, 2018		242,187
Gross increase		33,075
Balance as of June 30, 2019	$	275,262