Income Taxes (Tables)

12 Months Ended

Jun. 30, 2018

Income Taxes

Schedule of (loss) income before income taxes

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

	2018		2017
United States	$	(12,849)	$	(16,560)
Foreign		(90)		(245)
Total	$	(12,939)	$	(16,805)

Schedule of income tax provision

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

	2018		2017
Current:
Federal	$	(472)	$	(2,272)
State		14		15
Foreign		163		166
Total current benefit		(295)		(2,091)
Deferred:
Federal		239		(496)
State		21		(44)
Total deferred (benefit) expense		260		(540)
Income tax benefit	$	(35)	$	(2,631)

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:

	2018		2017
Federal income taxes	27.6	%	34.0	%
State income taxes	2.5	%	2.1	%
Share-based compensation	(0.7)	%	(0.7)	%
Permanent items	(0.1)	%	(0.1)	%
Research and development tax credits	0.0	%	0.8	%
Foreign taxes	(1.3)	%	(1.0)	%
Remeasurement of deferred taxes	(10.1)	%	—	%
Effect of phased-in tax rate	(6.9)	%	—	%
Uncertain tax positions	1.4	%	(0.1)	%
Valuation allowance and other	(12.0)	%	(19.3)	%
Effective rate	0.4	%	15.7	%

Components of deferred tax assets and liabilities

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

	June 30, 2018		June 30, 2017
Deferred tax assets arising from:
Accrued liabilities and reserves	$	157	$	492
Deferred revenue		32		95
Bad debt reserves		20		52
Tangible property		73		127
Inventory reserve		513		756
Intangible assets		1,655		2,381
Other		6		43
Share-based compensation		179		161
Foreign tax credit carryforward		451		288
Research and development tax credits		238		311
Alternative minimum tax credits		—		318
Tax effects of net operating loss carryforwards		5,273		3,855
Less valuation allowances		(6,414)		(4,933)
Deferred tax assets		2,183		3,946
Deferred tax liabilities arising from:
Property and equipment		(2,144)		(3,533)
Prepaid expenses		(28)		(126)
Unrealized foreign currency gain		(11)		(27)
Deferred tax liabilities		(2,183)		(3,686)
Net deferred tax asset (liability)	$	—	$	260

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, 2018 and 2017 (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, 2018		June 30, 2017
Balance, beginning of year	$	823	$	783
Increase in current year position		—		40
Increase in prior year position		106		—
Decrease in prior year position		(50)		—
Lapse in statute of limitations		(76)		—
Balance, end of year	$	803	$	823