INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

Schedule of provision for income taxes

The provision for income taxes consists of the following amounts (in thousands):

	Years Ended June 30,
	2019			2018
Current:
Federal	$	(140	)	$	579
State		21			19
Deferred:
Federal		1,079			247
State		339			144
Income tax expense	$	1,299		$	989

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,
	2019						2018
	Amount			Percent Pretax Income			Amount			Percent Pretax Income
Income before income taxes	$	5,447			100	%	$	2,610			100	%
Computed “expected” income tax expense on income before income taxes	$	1,135			21	%	$	719			28	%
State tax, net of federal benefit		281			5	%		73			3	%
Tax incentives		(85	)		(1	%)		(47	)		(2	%)
Change in valuation allowance		11			—			202			8	%
Tax law changes		(8	)		—			119			5	%
Domestic production deduction		8			—			(84	)		(4	%)
Other		(43	)		(1	%)		7			—
Income tax expense	$	1,299			24	%	$	989			38	%

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,
	2019			2018
Deferred tax assets:
Federal & State NOL carryforward	$	23		$	23
Research & other credits		347			1,517
Reserves and accruals		431			438
Stock based compensation		9			55
Inventory		357			371
Other intangibles		37			70
Other		147			48
Total gross deferred tax assets	$	1,351		$	2,522
Less: valuation allowance		(477	)		(368	)
Total deferred tax assets		874			2,154

	June 30,
	2019			2018
Deferred tax liabilities:
Property and equipment, principally due to differing depreciation methods	$	(527	)	$	(318	)
Deferred state tax		(81	)		(152	)
Other		(6	)		(6	)
Total gross deferred tax liabilities		(614	)		(476	)
Net deferred tax assets	$	260		$	1,678

Schedule of accrual unrecognized tax benefits

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

	June 30,
	2019		2018
Unrecognized tax benefits:
Beginning balance	$	462	$	446
Additions based on federal tax positions related to the current year		11		8
Additions based on state tax positions related to the current year		11		8
Additions for tax positions of prior years		6		—
Reductions for tax positions of prior years		—		—
Ending balance	$	490	$	462