INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2020

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,
	2020			2019
Current:
Federal	$	1,542		$	(140	)
State		270			21
Deferred:
Federal		(243	)		1,079
State		221			339
Income tax expense	$	1,790		$	1,299

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,
	2020						2019
	Amount			Percent Pretax Income			Amount			Percent Pretax Income
Income before income taxes	$	7,902			100	%	$	5,447			100	%
Computed “expected” income tax expense on income before income taxes	$	1,659			21	%	$	1,135			21	%
State tax, net of federal benefit		440			6	%		281			5	%
Tax incentives		(85	)		(1	%)		(85	)		(1	%)
Change in valuation allowance		(227	)		(3	%)		11			—
Tax law changes		—			—			(8	)		—
Domestic production deduction		—			—			8			—
Other		3			—			(43	)		(1	%)
Income tax expense	$	1,790			23	%	$	1,299			24	%

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,
	2020			2019
Deferred tax assets:
Federal & state NOL carryforward	$	21		$	23
Research & other credits		65			347
Reserves and accruals		438			431
Stock based compensation		110			9
Unrealized losses		455			—
Inventory		334			357
Other intangibles		—			37
Other		—			147
Total gross deferred tax assets	$	1,423		$	1,351
Less: valuation allowance		(543	)		(477	)
Total deferred tax assets		880			874

	June 30,
	2020			2019
Deferred tax liabilities:
Property and equipment, principally due to differing depreciation methods	$	(577	)	$	(527	)
Deferred state tax		(33	)		(81	)
Other		(11	)		(6	)
Total gross deferred tax liabilities		(621	)		(614	)
Net deferred tax assets	$	259		$	260

Schedule of accrual unrecognized tax benefits

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

	June 30,
	2020			2019
Unrecognized tax benefits:
Beginning balance	$	490		$	462
Additions based on federal tax positions related to the current year		15			11
Additions based on state tax positions related to the current year		13			11
Additions for tax positions of prior years		55			6
Reductions due to lapses in statutes of limitation		(49	)		—
Ending balance	$	524		$	490