INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2018

Components of income tax expense (benefit)

The components of income tax expense (benefit) are as follows (in thousands):



	Year ended June 30,
	2018			2017		2016
Current:
Federal	$	—		$	—	$	—
State	29			4		24
Total Current	$	29		$	4	$	24

Deferred:
Federal	$	(8	)	$	—	$	—
State	—			—		—
Total Deferred	(8		)	—		—
Net Income Tax Expense	$	21		$	4	$	24

Effective income tax rate reconciliation

The reconciliation of the statutory income tax rate to the Company’s effective income tax rate for the fiscal years ended June 30, 2018, 2017 and 2016 is as follows :



	Year Ended June 30,
	2018		2017		2016
Statutory rate	27.6	%	34.0	%	34.0	%
State income taxes, net	(3.7	)%	(4.5	)%	(18.6	)%
Impact of 2017 tax reform	(107.0	)%	—	%	—	%
Meals and entertainment	(1.8	)%	(1.5	)%	38.7	%
Stock-based compensation	22.6	%	—	%	—	%
AMT and research and development credits	22.4	%	—	%	(218.9	)%
Other	(2.0	)%	0.2	%	1.5	%
Effective rate before valuation allowance	(41.9	)%	28.2	%	(163.3	)%
Change in valuation allowance	38.7	%	(28.5	)%	228.2	%
Effective tax rate	(3.2	)%	(0.3	)%	64.9	%

Components of deferred tax assets and liabilities

At June 30, 2018 and 2017, the significant components of deferred tax assets and liabilities are approximated as follows (in thousands):



	June 30,
	2018			2017
Deferred tax assets relating to:
Stock-based compensation	$	283		$	398
AMT and research and development credits	668			523
Deferred rent	58			77
Inventory	147			211
Professional fees	91			155
Accrued vacation	31			43
Accounts receivable allowance	26			49
Contribution carryovers	13			12
Net operating loss carryforwards	1,153			1,443
Total deferred tax assets	2,470			2,911
Deferred tax liabilities related to depreciable and amortizable assets	(587		)	(783		)
Net deferred tax assets before valuation allowance	1,883			2,128
Valuation allowance	(1,875		)	(2,128		)
Net deferred tax assets	$	8		$	—