Income Taxes (Tables)

12 Months Ended

Jun. 30, 2017

Income Taxes

Schedule of (loss) income before income taxes

The components of loss before income taxes are as follows (in thousands):

	June 30, 2017		June 30, 2016
United States	$	(16,560)	$	(3,053)
Foreign		(245)		(763)
Total	$	(16,805)	$	(3,816)

Schedule of income tax provision

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

	June 30, 2017		June 30, 2016
Current:
Federal	$	(2,272)	$	(967)
State		15		62
Foreign		166		122
Total current benefit		(2,091)		(783)
Deferred:
Federal		(496)		267
State		(44)		25
Total deferred (benefit) expense		(540)		292
Income tax benefit	$	(2,631)	$	(491)

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, 2017		June 30, 2016
Federal income taxes	34.0	%	34.0	%
State income taxes	2.1	%	1.7	%
Foreign income inclusions	—	%	(1.3)	%
Share-based compensation	(0.7)	%	(1.5)	%
Permanent items	(0.1)	%	—	%
Research and development tax credits	0.8	%	7.0	%
Foreign taxes	(1.0)	%	(3.2)	%
Uncertain tax positions	(0.1)	%	(1.4)	%
Valuation allowance and other	(19.3)	%	(22.4)	%
Effective rate	15.7	%	12.9	%

Components of deferred tax assets and liabilities

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

	June 30, 2017		June 30, 2016
Deferred tax assets arising from:
Accrued liabilities and reserves	$	492	$	216
Deferred revenue		95		9
Bad debt reserves		52		93
Tangible property		127		117
Inventory reserve		756		343
Intangible assets		2,381		1,323
Other		43		44
Share-based compensation		161		4
Unrealized foreign currency gain		—		2
Foreign tax credit carryforward		288		122
Research and development tax credits		311		201
Alternative minimum tax credits		318		319
Tax effects of net operating loss carryforwards		3,855		2,117
Less valuation allowances		(4,933)		(1,925)
Deferred tax assets		3,946		2,985
Deferred tax liabilities arising from:
Property and equipment		(3,533)		(3,136)
Prepaid expenses		(126)		(154)
Unrealized foreign currency gain		(27)		—
Deferred tax liabilities		(3,686)		(3,290)
Net deferred tax asset (liability)	$	260	$	(305)

Summary of changes in the unrecognized tax benefits

The following table summarizes the changes in the Company's unrecognized tax benefits during the year ended June 30, 2017 and 2016 (in thousands).  The Company expects no material changes to unrecognized tax positions within the next twelve months.  If recognized, all of these benefits would favorably impact the Company’s income tax expense, before considerations of any related valuation allowance.

		June 30, 2017		June 30, 2016
Balance, beginning of year	$	783	$	924
Increase in current year position		40		131
Decrease in prior year position		—		(272)
Balance, end of year	$	823	$	783