Income Taxes

3 Months Ended

Sep. 30, 2011

Income Taxes [Abstract]

Income Taxes

Note 10. – Income Taxes

Income tax benefit of $193 ($175 federal tax benefit and $18 state tax benefit) and income tax benefit of $693 ($860 federal tax benefit and $167 state tax expense) was recorded for the three months ended September 30, 2011 and 2010, respectively.

We had an estimated net operating loss carry-forward for federal income tax purposes of approximately $6,150 at September 30, 2011. Use of this net operating loss carry-forward is subject to the limitations of the provisions of Internal Revenue Code Section 382. As a result, not all of the net operating loss carry-forward is available to offset federal taxable income in the current year. At September 30, 2011, we have provided a partial valuation allowance against the deferred tax asset so that the net tax asset was $8,324. Based upon management's assessment that it was more likely than not that a portion of its deferred tax asset (primarily its net operating losses subject to limitation) would not be recovered, the Company established a valuation allowance for the portion of the tax asset which management estimates will not be utilized.

The Company accounts for uncertainty in income taxes for a change in judgment related to prior years' tax positions in the quarter of such change. Activity in the unrecognized tax benefit liability account was as follows from July 1, 2008 through September 30, 2011:

Balance at July 1, 2008	$	58
Additions based on tax positions related to current year		31
Reduction for tax positions of prior years		(23	)
Balance at June 30, 2009		66
Additions based on tax positions related to current year		35
Reduction for tax positions of prior years		(30	)
Balance at June 30, 2010		71
Reduction for tax positions of prior years		(34	)
Balance at June 30, 2011		37
Additions based on tax positions related to current year		(6	)
Reduction for tax positions of prior years		2
Balance at September 30, 2011	$	33