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INCOME TAXES (Tables)
 12 Months Ended
Jun. 30, 2020
Income Tax Disclosure [Abstract]  
Components of income tax expense (benefit)
The components of income tax expense (benefit) are as follows (in thousands):
 Year ended June 30,
 202020192018
Current:   
Federal$(122)$(123)$— 
State35 42 29 
Total current$(87)$(81)$29 
Deferred:   
Federal$(1,406)$217 $(8)
State(89)34 — 
Total deferred(1,495)251 (8)
Net income tax expense (benefit)$(1,582)$170 $21 
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, 2020, 2019 and 2018 is as follows:
 Year Ended June 30,
 202020192018
Statutory rate21.0 %21.0 %27.6 %
State income taxes, net(1.0)%22.9 %(3.7)%
Impact of 2017 tax reform— %— %(107.0)%
Meals and entertainment1.6 %2.7 %(1.8)%
Stock-based compensation0.7 %16.1 %22.6 %
Research and development credits(5.3)%7.3 %22.4 %
Other(1.5)%1.5 %(2.0)%
Effective rate before valuation allowance15.5 %71.5 %(41.9)%
Change in valuation allowance(247.1)%(27.2)%38.7 %
Effective tax rate(231.6)%44.3 %(3.2)%
Components of deferred tax assets and liabilities
At June 30, 2020 and 2019, the significant components of deferred tax assets and liabilities are as follows (in thousands):
 June 30,
 2020
2019 (1)
Deferred tax assets relating to: 
Stock-based compensation$211 $261 
AMT and research and development credits490 517 
Inventory98 158 
Professional fees175 124 
Deferred tax assets related to other items140 109 
Net operating loss carryforwards1,016 1,067 
Total deferred tax assets2,130 2,236 
Deferred tax liabilities related to depreciable and amortizable assets(836)(728)
Deferred tax liabilities related to other items(42)(63)
Net deferred tax assets before valuation allowance1,252 1,445 
Valuation allowance— (1,688)
Net deferred tax (liability) asset$1,252 $(243)
(1) Certain prior year amounts have been reclassified to conform to current year presentation.