INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2016

INCOME TAXES [Abstract]

Components of income tax expense

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

	Year ended June 30,
	2016		2015		2014
Current
Federal	$	-	$	29	$	13
State		24		83		20
	$	24	$	112	$	33

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, 2016, 2015 and 2014 is as follows:

	Year Ended June 30,
	2016			2015			2014
Statutory rate		34.0	%		34.0	%		34.0	%
State income taxes, net		(18.6	%)		5.3	%		(6.9	%)
Meals and entertainment		38.7	%		1.2	%		1.2	%
AMT and research and development credits		(218.9	%)		0.0	%		0.0	%
Other		1.5	%		0.0	%		(4.0	%)
Effective rate before valuation allowance		(163.3	%)		40.5	%		24.3	%
Change in valuation allowance		228.2	%		(31.7	%)		(21.0	%)
Effective tax rate		64.9	%		8.8	%		3.3	%

Components of deferred tax assets and liabilities

At June 30, 2016 and 2015, the significant components of deferred tax assets and liabilities are approximated as follows (in thousands):

	June 30,
	2016			2015
Deferred tax assets relating to:
Stock compensation	$	627		$	892
AMT and research and development credits		523			455
Deferred rent		82			44
Inventory		169			92
Professional fees		140			163
Accrued vacation		33			23
Accounts receivable allowance		24			13
Contribution carryovers		8			31
Net operating loss carryforwards		1,044			1,124
Total deferred tax assets		2,650			2,837
Deferred tax liablities related to depreciation differences		(621	)		(555	)
Net deferred tax assets before valuation allowance		2,029			2,282
Valuation allowance		(2,029	)		(2,282	)
Net deferred tax assets	$	-		$	-