11.

INCOME TAXES

The provision (benefit) for income taxes on continuing operations are as follows:


	Year ended June 30,
	2013			2012			2011
Current	$	(4,220	)	$	(768	)	$	(1,211	)
Deferred		2,914			203			(7,861	)

Total income tax benefit	$	(1,306	)	$	(565	)	$	(9,072	)

Net deferred income tax assets recorded in the consolidated balance sheets are as follows:


	June 30,
	2013			2012
Net operating loss carryforward	$	3,279		$	5,624
Depreciation expense		(2,546	)		(3,385	)
Allowances for receivables		2,571			3,217
EHR Deferred gain		461			13
Accrued expenses		1,868			2,675
Intangible assets		3,762			4,273
Pension liabilities		313			208
Other		564			485

		10,272			13,110
Less valuation allowance		(2,151	)		(2,045	)

Net deferred income tax assets	$	8,121		$	11,065

The differences between income taxes at the Federal statutory rate and the effective tax rate were as follows:


	Year ended June 30,
	2013			2012			2011
Income tax at Federal statutory rate	$	(983	)	$	(909	)	$	(8,674	)
Changes in valuation allowance—continuing operations		106			(33	)		588
U.S. state income taxes, net of federal benefit		(476	)		(9	)		(1,046	)
Share option expense		29			31			2
Amortization		0			316			9
Other		18			39			49

Total income tax expense (benefit)—continuing operations	$	(1,306	)	$	(565	)	$	(9,072	)

The Company provided a $2,151 deferred tax valuation allowance as of June 30, 2013 so that the net deferred income tax assets were $8,121 as of June 30, 2013. Based upon management’s assessment, the Company determined that it was more likely than not that a portion of its deferred tax asset would not be recovered. The increase in the valuation allowance during the fiscal year ended June 30, 2013 resulted from reserving for certain state net operating loss carryforwards that were not reserved for in prior periods. It is more likely than not that these net operating loss carryforwards will not be realized in future years. The Company provided a $2,045 deferred tax valuation allowance as of June 30, 2012 so that the net deferred tax assets were $11,065 as June 30, 2012. The net operating loss carryforwards expire in 2023.

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. The Company classifies interest and penalties related to unrecognized tax benefits as part of its provision for income taxes. Accordingly, included in the liability for unrecognized tax benefits was a liability of $229 as of June 30, 2013.

A reconciliation of the beginning and ending amounts of unrecognized tax benefits, included interest and penalties from July 1, 2010 through June 30, 2013 is presented below:


Balance at June 30, 2010	$	71
Reductions for tax positions of prior years		(34	)

Balance at June 30, 2011		37
Reductions for tax positions of prior years		(18	)

Balance at June 30, 2012		19
Additions based on tax positions related to current year		218
Reductions for tax positions related to current year		(1	)
Reductions for tax positions of prior years		(7	)

Balance at June 30, 2013	$	229