INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

Schedule of provision (benefit) for income taxes

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

	Years Ended June 30,
	2018		2017
Current:
Federal	$	579	$	34
State		19		40
Deferred:
Federal		247		(1,263	)
State		144		(900	)
Income tax expense (benefit)	$	989	$	(2,089	)

Schedule of reconciliation federal statutory income tax rates

The effective income tax rate from income (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,
	2018						2017
	Amount			Percent Pretax Income			Amount			Percent Pretax Income
Income (loss) from continuing operations before income taxes	$	2,610			100	%	$	2,752			100	%
Computed “expected” income tax expense (benefit) on income (loss) from continuing operations before income taxes	$	719			28	%	$	936			34	%
State tax, net of federal benefit		73			3	%		270			10	%
Tax incentives		(47	)		(2	%)		(36	)		(1	%)
Change in valuation allowance		202			8	%		(3,252	)		(118	%)
Tax law changes		119			5	%		—			—
Domestic production deduction		(84	)		(4	%)		—			—
Other		7			—			(7	)		(1	%)
Income tax expense (benefit)	$	989			38	%	$	(2,089	)		(76	%)

Schedule of deferred income tax assets and liabilities

Significant components of our deferred tax assets and liabilities for federal and state income taxes are as follows (in thousands):

	June 30,
	2018			2017
Deferred tax assets:
Federal & State NOL carryforward	$	23		$	181
Research & other credits		1,517			1,832
Reserves and accruals		438			180
Stock based compensation		55			—
Inventory		371			446
Other intangibles		70			178
Goodwill		—			77
Other		48			1
Total gross deferred tax assets	$	2,522		$	2,895
Less: valuation allowance		(368	)		(89	)
Total deferred tax assets		2,154			2,806

	June 30,
	2018			2017
Deferred tax liabilities:
Property and equipment, principally due to differing depreciation methods	$	(318	)	$	(438	)
Deferred state tax		(152	)		(295	)
Other intangibles		—			(2	)
Other		(6	)		(23	)
Total gross deferred tax liabilities		(476	)		(758	)
Net deferred tax assets	$	1,678		$	2,048

Schedule of accrual unrecognized tax benefits

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

	June 30,
	2018		2017
Unrecognized tax benefits:
Beginning balance	$	446	$	446
Additions based on federal tax positions related to the current year		16		18
Additions based on state tax positions related to the current year		—		—
Additions for tax positions of prior years		—		1
Reductions for tax positions of prior years		—		(19	)
Ending balance	$	462	$	446