INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2019

Components of income tax expense (benefit)

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



	Year ended June 30,
	2019			2018			2017
Current:
Federal	$	(123	)	$	—		$	—
State	42			29			4
Total Current	$	(81	)	$	29		$	4

Deferred:
Federal	$	217		$	(8	)	$	—
State	34			—			—
Total Deferred	251			(8		)	—
Net Income Tax Expense	$	170		$	21		$	4

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, 2019, 2018 and 2017 is as follows:



	Year Ended June 30,
	2019		2018		2017
Statutory rate	21.0	%	27.6	%	34.0	%
State income taxes, net	22.9	%	(3.7	)%	(4.5	)%
Impact of 2017 tax reform	—	%	(107.0	)%	—	%
Meals and entertainment	2.7	%	(1.8	)%	(1.5	)%
Stock-based compensation	16.1	%	22.6	%	—	%
Research and development credits	7.3	%	22.4	%	—	%
Other	1.5	%	(2.0	)%	0.2	%
Effective rate before valuation allowance	71.5	%	(41.9	)%	28.2	%
Change in valuation allowance	(27.2	)%	38.7	%	(28.5	)%
Effective tax rate	44.3	%	(3.2	)%	(0.3	)%

Components of deferred tax assets and liabilities

At June 30, 2019 and 2018, the significant components of deferred tax assets and liabilities are as follows (in thousands):



	June 30,
	2019			2018
Deferred tax assets relating to:
Stock-based compensation	$	261		$	283
AMT and research and development credits	517			668
Deferred rent	41			58
Inventory	158			147
Professional fees	124			91
Accrued vacation	27			31
Accounts receivable allowance	33			26
Contribution carryovers	8			13
Net operating loss carryforwards	1,067			1,153
Total deferred tax assets	2,236			2,470
Deferred tax liabilities related to depreciable and amortizable assets	(728		)	(587		)
Deferred tax liabilities related to other items	(63		)	—
Net deferred tax assets before valuation allowance	1,445			1,883
Valuation allowance	(1,688		)	(1,875		)
Net deferred tax (liability) asset	$	(243	)	$	8