INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2017

INCOME TAXES [Abstract]

Components of income tax expense

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

	Year ended June 30,
	2017		2016		2015
Current
Federal	$	-	$	-	$	29
State		4		24		83
	$	4	$	24	$	112

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, 2017, 2016 and 2015 is as follows:

	Year Ended June 30,
	2017			2016			2015
Statutory rate		34.0	%		34.0	%		34.0	%
State income taxes, net		(4.5	%)		(18.6	%)		5.3	%
Meals and entertainment		(1.5	%)		38.7	%		1.2	%
AMT and research and development credits		0.0	%		(218.9	%)		0.0	%
Other		0.2	%		1.5	%		0.0	%
Effective rate before valuation allowance		28.2	%		(163.3	%)		40.5	%
Change in valuation allowance		(28.5	%)		228.2	%		(31.7	%)
Effective tax rate		(0.3	%)		64.9	%		8.8	%

Components of deferred tax assets and liabilities

At June 30, 2017 and 2016, the significant components of deferred tax assets and liabilities are approximated as follows (in thousands):

	June 30,
	2017			2016
Deferred tax assets relating to:
Stock compensation	$	398		$	627
AMT and research and development credits		523			523
Deferred rent		77			82
Inventory		211			169
Professional fees		155			140
Accrued vacation		43			33
Accounts receivable allowance		49			24
Contribution carryovers		12			8
Net operating loss carryforwards		1,443			1,044
Total deferred tax assets		2,911			2,650
Deferred tax liablities related to depreciation differences		(783	)		(621	)
Net deferred tax assets before valuation allowance		2,128			2,029
Valuation allowance		(2,128	)		(2,029	)
Net deferred tax assets	$	-		$	-