INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2014

Income Taxes Tables

Components of income tax provision (benefits)

On a consolidated basis, the Company’s net income tax provisions (benefits) were as follows:

	For the Year Ended June 30,
	2014			2013
Current:
Federal	$	-		$	-
State		5			2
Foreign		(175	)		(956	)
	$	(170	)	$	(954	)
Deferred:
Federal	$	-		$	-
State		-			-
Foreign		(174	)		694
		(174	)		694
Total provision	$	(344	)	$	(260	)

Reconciliation of income tax rate

The reconciliation between the U.S. federal tax rate and the effective income tax rate was as follows:

	Year Ended June 30,
	2014			2013
Statutory federal tax rate		(34	)%		(34	)%
State taxes, net of federal benefit		(6	)		(6	)
Foreign tax related to profits making subsidiaries		(400	)		(1	)
NOL Expiration		5			0
Other		5			5
Changes in valuation allowance		95			0
Effective rate		(335	)%		(41	)%

Deferred income tax assets (liabilities)

	For the Year Ended June 30,
	2014		2013
Deferred tax assets:
Net operating losses and credits	$	1,572	$	956
Inventory valuation		99		99
Depreciation		-		-
Provision for bad debts		788		3
Accrued vacation		15		16
Capital loss		78		-
Accrued expenses		217		135
Investment in subsidiaries		182		-
Deferred Income		201		-
Other		112		3
Total deferred tax assets	$	3,264	$	1,212

Deferred tax liabilities:
Accrued expenses		(10	)		-
Depreciation		(192	)		(191	)
Other		-			-
Total deferred income tax liabilities	$	(202	)	$	(191	)
Subtotal		3,062			1,019
Valuation allowance		(2,876	)		(1,007	)
Net deferred tax assets	$	186		$	12
Presented as follows in the balance sheets:
Deferred tax assets		388			203
Deferred tax liabilities		(202	)		(191	)
Net deferred tax assets	$	186		$	12