Income Taxes (Tables)

12 Months Ended

Jun. 30, 2014

Income Tax Disclosure [Abstract]

Schedule of provision (benefit) for income taxes

The provision for (benefit from) income taxes from continuing operations consists of the following amounts (in thousands):

	Years Ended June 30,
	2014			2013
Current:
Federal	$	—		$	5
State		3			7
Deferred:
Federal		(84	)		(41	)
State		(23	)		(10	)
Benefit from income taxes	$	(104	)	$	(39	)

Schedule of reconciliation federal statutory income tax rates

The effective income tax rate on loss from continuing operations differs from the United States statutory income tax rates for the reasons set forth in the table below (in thousands, except percentages).

	Years Ended June 30,
	2014						2013
	Amount			Percent Pretax Income			Amount			Percent Pretax Income
Loss from continuing operations before income taxes	$	(755	)		100%		$	(1,903	)		100%
Computed “expected” income tax benefit on loss from continuing operations before income taxes	$	257			34%		$	647			34%
State tax, net of federal benefit		(10	)		(1%	)		130			7%
Tax incentives		30			4%			129			7%
Change in valuation allowance		(154	)		(21%	)		(851	)		(45%	)
Permanent differences		(31	)		(4%	)		(29	)		(2%	)
State income tax rate adjustment		12			2%			13			1%
Income tax benefit	$	104			14%		$	39			2%

The total income tax expense recorded for the years ended June 30, 2014 and 2013 was as follows (in thousands):

	June 30,
	2014			2013
Tax benefit from continuing operations	$	(104	)	$	(39	)
Tax expense from discontinued operations		107			51
	$	3		$	12

Schedule of deferred income tax assets and liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at June 30, 2014 and 2013 are as follows (in thousands):

	June 30,
	2014			2013
Deferred tax assets/(liabilities) – current:
Accrued expenses	$	253		$	206
Inventory		486			504
Net operating losses		119			—
State taxes		1			2
Less: valuation allowance		(744	)		(653	)
Net deferred tax assets	$	115		$	59

	June 30,
	2014			2013
Deferred tax assets/(liabilities) – non-current:
Income tax credit carry forwards	$	1,443		$	1,381
Net operating losses		1,299			1,092
Intangible assets		287			350
Deferred rent		132			149
State taxes		16			16
Property and equipment, principally due to differing depreciation methods		(458	)		(291	)
Share based compensation		16			32
Unrealized gain on investment		(85	)		(2	)
Total gross deferred tax assets		2,650			2,727
Less: valuation allowance		(2,765	)		(2,786	)
Net deferred tax liabilities	$	(115	)	$	(59	)

Schedule of valuation allowance

Due to cumulative taxable losses in recent years, we have maintained a full valuation allowance against our deferred tax assets at June 30, 2014 and 2013, information related to which is as follows (in thousands):

		Valuation Allowance
Balance at July 1, 2013	$	(3,439	)
Increase in deferred tax asset valuation allowance		(70	)
Balance at January 31, 2014	$	(3,509	)

Schedule of accrual unrecognized tax benefits

Information with respect to our accrual for unrecognized tax benefits is as follows (in thousands):

Balance at July 1, 2013	$	347
Additions based on tax positions related to the current year		21
Reductions for tax positions of prior years		(5	)
Balance at June 30, 2014	$	363