INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2021

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,
	2021			2020
Current:
Federal	$	1,040		$	1,542
State		340			270
Deferred:
Federal		(186	)		(243	)
State		(18	)		221
Income tax expense	$	1,176		$	1,790

Schedule of reconciliation federal statutory income tax rates

The effective income tax rate from income 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,
	2021						2020
	Amount			Percent Pretax Income			Amount			Percent Pretax Income
Income before income taxes	$	5,626			100	%	$	7,902			100	%
Computed “expected” income tax expense on income before income taxes	$	1,181			21	%	$	1,659			21	%
State tax, net of federal benefit		279			5	%		440			6	%
Tax incentives		(169	)		(3	%)		(85	)		(1	%)
Change in valuation allowance		—			—			(227	)		(3	%)
Stock based compensation		(93	)		(2	%)		—			—
Other		(22	)		—			3			—
Income tax expense	$	1,176			21	%	$	1,790			23	%

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,
	2021			2020
Deferred tax assets:
Federal and state NOL carryforward	$	20		$	21
Research and other credits		65			65
Reserves and accruals		461			438
Stock based compensation		268			110
Unrealized losses		61			455
Inventory		371			334
Total gross deferred tax assets	$	1,246		$	1,423
Less: valuation allowance		(158	)		(543	)
Total deferred tax assets		1,088			880
Deferred tax liabilities:
Property and equipment, principally due to differing depreciation methods	$	(523	)	$	(577	)
Deferred state tax		(38	)		(33	)
Other		(64	)		(11	)
Total gross deferred tax liabilities		(625	)		(621	)
Net deferred tax assets	$	463		$	259

Schedule of accrual unrecognized tax benefits

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

	June 30,
	2021			2020
Unrecognized tax benefits:
Beginning balance	$	524		$	490
Additions based on federal tax positions related to the current year		30			15
Additions based on state tax positions related to the current year		20			13
Additions for tax positions of prior years		6			55
Reductions due to lapses in statutes of limitation		(30	)		(49	)
Ending balance	$	550		$	524