INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2014

Income Tax Disclosure [Abstract]

Schedule of income before income taxes

For financial reporting purposes, income before income taxes includes the following components:

	June 30, 2014		June 30, 2013
United States	$	4,291	$	3,752
Foreign	2,864		574
Total	$	7,155	$	4,326

Schedule of income tax provision

Income tax provision for the years ended June 30, 2014, and June 30, 2013, consist of the following (in thousands):

	June 30, 2014			June 30, 2013
Current:
Federal tax expense	$	3,298		$	426
State tax expense	194			64
Foreign tax expense	396			232
Total current	3,888			722
Deferred:
Federal	(1,477		)	—
Total deferred	(1,477		)	—
Provision for income taxes from continuing operations	2,411			722
Federal income tax (benefit) from discontinued operations	—			(132		)
Total provision for income taxes	$	2,411		$	590

Schedule of reconciliation of the federal statutory rate to the effective income tax rate

A reconciliation of the federal statutory rate to the effective income tax rate follows:

	June 30, 2014		June 30, 2013
Federal income taxes	34.0	%	34.0	%
State income taxes	1.8	%	1.1	%
Foreign taxes	—	%	5.9	%
Permanent items	0.4	%	(4.7	)%
Exempt foreign income	(1.4	)%	—	%
Uncertain tax positions	9.4	%	—	%
Utilization of operating loss carryforward	—	%	(13.2	)%
Valuation allowance and other	(10.5	)%	(8.0	)%
Effective rate	33.7	%	15.1	%

Schedule of components of deferred tax assets and liabilities

Components of our deferred tax assets and liabilities were as follows (thousands):

	June 30, 2014			June 30, 2013
Deferred tax assets arising from:
Accrued liabilities and reserves	$	731		$	140
Deferred revenue	51			—
Bad debt reserves	94			96
IRS Code Section 263(a)	287			155
Inventory reserve	170			129
Intangible assets	574			2,530
Other	59			—
Tax effects of net operating loss carry-forwards	2,031			2,119
Less valuation allowances	(609		)	(4,430		)
Deferred tax assets	3,388			739
Deferred tax liabilities arising from:
Property and equipment	(1,911		)	(727		)
Deferred revenue on asset transfer	—			(12		)
Deferred tax liabilities	(1,911		)	(739		)
Net deferred tax asset	$	1,477		$	—

Schedule of unrecognized tax benefits

The following table summarized the changes in the Company's unrecognized tax benefits during the year ended June 30, 2014:

Gross unrecognized tax benefits at June 30, 2013	$	—
Increase in prior year position	568
Gross unrecognized tax benefits at June 30, 2014	$	568