INCOME TAXES

3 Months Ended

Sep. 30, 2015

Income Tax Disclosure [Abstract]

INCOME TAXES

11. INCOME TAXES

For the three months ended September 30, 2015, an income tax provision of $27 thousand (substantially all deferred income taxes) was recorded based upon income before provision before income taxes using an estimated annual effective income tax rate of 39% for the fiscal year ending June 30, 2016 net of a benefit for the tax effect of the change in the fair value of warrant liabilities which was treated discretely.

For the three months ended September 30, 2014, an income tax benefit of $360 thousand (substantially all deferred income taxes) was recorded based upon a loss before benefit for income taxes using an estimated annual effective income tax rate of 56% for the fiscal year ended June 30, 2015 and a benefit for the tax effect of the change in the fair value of warrant liabilities which was treated discretely. 

A reconciliation of the federal statutory rate of 34% to the quarterly effective rate for the three months ended September 30, 2015 and 2014 is as follows: 

	2015			2014
Federal statutory rate		34	%		34	%
Effects of permanent differences		2	%		14	%
State income taxes, net of federal benefit		3	%		8	%
Subtotal		39	%		56	%
Change in fair value of warrant liabilities treated discretely		-32	%		29	%
Other		-			1	%
		7	%		86	%

Deferred tax assets recorded on the balance sheets are as follows:

($ in thousands)
Deferred Tax Assets:	September 30,  2015		June 30,  2015
	(unaudited)
Current	$	1,258	$	1,258
Long-Term		25,761		25,788
	$	27,019	$	27,046