Income Taxes (Tables)

12 Months Ended

Jun. 30, 2020

Schedule of Income Tax Provision (Benefit)

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

	Current			Deferred			Total
Fiscal Year Ended June 30, 2020
Federal	$	(286	)	$	306		$	20
State and local		196			5			201
Total	$	(90	)	$	311		$	221
Fiscal Year Ended June 30, 2019
Federal	$	(286	)	$	303		$	17
State and local		225			4			229
Total	$	(61	)	$	307		$	246
Fiscal Year Ended June 30, 2018
Federal	$	—		$	(568	)	$	(568	)
State and local		426			3			429
Total	$	426		$	(565	)	$	(139	)

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% in fiscal 2020 and 2019, the blended statutory federal income tax rate of 27.2% in fiscal 2018 and income taxes recognized in the Consolidated Statements of Operations was as follows (in thousands):

	Fiscal Year Ended
	June 30,
	2020			2019			2018
Federal income tax benefit computed at statutory rate		(34,883	)	$	(2,561	)	$	(6,005	)
State income taxes, net of related federal tax benefit		159			181			314
Increase in federal valuation allowance		34,586			2,291			5,182
Federal tax credits		(91	)		(294	)		(200	)
Stock option expiration/deficiencies		620			548			586
Federal tax rate change		—			—			(19	)
Other, net		(170	)		81			3
Provision/(benefit) for income taxes	$	221		$	246		$	(139	)

Schedule of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities for the fiscal years ended June 30, 2020 and 2019, all of which are classified as non-current in our Consolidated Balance Sheets, were comprised of the following (in thousands):

	June 30,
	2020			2019
Deferred tax assets:
Other payroll and benefits	$	189		$	2,093
Inventory reserves		1,516			172
Self-insurance reserves		2,620			2,526
Share-based compensation		1,648			1,968
Other current assets		1,288			2,424
Deferred rent		—			5,895
Operating lease liabilities		87,073			—
Property and equipment		3,208			—
Disallowed interest expense		942			—
Net operating loss and tax credits		38,096			27,358
Other noncurrent assets		191			10
Total gross deferred tax assets	$	136,771		$	42,446
Deferred tax liabilities:
Inventory costs	$	4,371		$	5,609
Prepaid supplies		1,174			1,329
Operating lease - right of use		63,694			—
Property and equipment		—			7,761
Total gross deferred tax liabilities		69,239			14,699
Valuation allowance		(67,626	)		(27,531	)
Net deferred tax asset/(liability)	$	(94	)	$	216

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, 2017	$	147
Additions for tax positions of prior years		—
Reductions for lapse of statute of limitations		—
Balance at June 30, 2018	$	147
Additions for tax positions of prior years		—
Reductions for lapse of statute of limitations		—
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