Income Taxes (Tables)

12 Months Ended

Jul. 02, 2022

Income Tax Disclosure [Abstract]

Schedule of Income Tax Provision (Benefit)

Income tax provision/(benefit) consisted of the following (in thousands):

	Current			Deferred			Total
Fiscal Year Ended July 2, 2022
Federal	$	—		$	(96	)	$	(96	)
State and local		191			(22	)		169
Total	$	191		$	(118	)	$	73
Fiscal Year Ended June 30, 2021
Federal	$	—		$	20		$	20
State and local		267			4			271
Total	$	267		$	24		$	291
Fiscal Year Ended June 30, 2020
Federal	$	(286	)	$	306		$	20
State and local		196			5			201
Total	$	(90	)	$	311		$	221

Reconciliation of Income Taxes Computed at Blended Statutory Federal Income Tax Rate

A reconciliation between income taxes computed at the statutory federal income tax rate of 21% and taxes recognized in the Consolidated Statements of Operations was as follows (in thousands):

	Fiscal Years Ended
	July 2,			June 30,			June 30,
	2022			2021			2020
Federal income tax (benefit) expense computed at statutory rate	$	(12,375	)	$	687		$	(34,883	)
State income taxes, net of related federal tax benefit (excluding state valuation allowance)		(3,051	)		3,133			(6,874	)
Increase (decrease) in state valuation allowance		3,202			(2,919	)		7,033
Increase (decrease) in federal valuation allowance		11,816			(11,637	)		34,586
Federal tax credits		(244	)		(113	)		(91	)
Stock option expiration or deficiencies		556			250			620
Warrant issue expenses		—			4,324			—
Reorganization expenses		19			6,202			—
Other, net		150			364			(170	)
Provision for income taxes	$	73		$	291		$	221

Schedule of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities as of July 2, 2022, and June 30, 2021, all of which are classified as non-current in our Consolidated Balance Sheets, were comprised of the following (in thousands):

	July 2,			June 30,
	2022			2021
Deferred tax assets:
Other payroll and benefits	$	384		$	1,182
Inventory reserves		604			931
Self-insurance reserves		2,083			2,318
Share-based compensation		1,981			1,800
Other current assets		1,007			1,160
Operating lease liabilities		41,503			52,008
Property and equipment		2,992			727
Disallowed interest expense		6,671			2,954
Net operating loss and tax credits		54,327			41,833
Other noncurrent assets		435			556
Total gross deferred tax assets	$	111,987		$	105,469
Deferred tax liabilities:
Inventory costs	$	3,855		$	2,924
Prepaid supplies		1,436			1,353
Operating lease - right of use		38,681			47,627
Total gross deferred tax liabilities		43,972			51,904
Valuation allowance		(68,015	)		(53,683	)
Net deferred tax liability	$	—		$	(118	)

Schedule of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

Balance at June 30, 2019	$	147
Additions for tax positions of prior years		—
Reductions for lapse of statute of limitations		—
Balance at June 30, 2020	$	147
Additions for tax positions of prior years		—
Reductions for lapse of statute of limitations		—
Balance at June 30, 2021	$	147
Additions for tax positions of prior years		—
Reductions for lapse of statute of limitations		—
Balance at July 2, 2022	$	147