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Income Taxes | 12 Months Ended
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Jun. 30, 2022
Income Tax Disclosure [Abstract] |
Income Taxes | 10. Income Taxes The components of (loss) income before income taxes were as follows (in thousands):
|  | Fiscal Year Ended June 30, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
US |  | $ | (6,022 | ) |  | $ | 29,433 |  |  | $ | 17,824 |
Foreign |  |  | 260 |  |  |  | (104 | ) |  |  | 862 |
Total |  | $ | (5,762 | ) |  | $ | 29,329 |  |  | $ | 18,686 |
The components of the (benefit from) provision for income taxes were as follows (in thousands):
|  | Fiscal Year Ended June 30, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | — |  |  | $ | (3 | ) |  | $ | — |
State |  |  | 176 |  |  |  | 252 |  |  |  | (3,110 | )
Foreign |  |  | 195 |  |  |  | 187 |  |  |  | 218 |
Total current provision for (benefit from) income taxes |  |  | 371 |  |  |  | 436 |  |  |  | (2,892 | )
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (1,032 | ) |  |  | 4,732 |  |  |  | 2,504 |
State |  |  | 147 |  |  |  | 606 |  |  |  | 972 |
Foreign |  |  | — |  |  |  | — |  |  |  | — |
Total deferred (benefit from) provision for income taxes |  |  | (885 | ) |  |  | 5,338 |  |  |  | 3,476 |
Total (benefit from) provision for income taxes |  | $ | (514 | ) |  | $ | 5,774 |  |  | $ | 584 |
The fiscal 2021 and 2020 provision for income taxes reconciliations have been recast to dollar amounts versus a percentage of income before taxes for comparability to the fiscal 2022 presentation. The reconciliation between the statutory federal income tax (benefit) expense and the Company’s effective tax (benefit) expense was as follows (in thousands):
|  | Fiscal Year Ended June 30, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Statutory federal tax |  | $ | (1,210 | ) |  | $ | 6,180 |  |  | $ | 3,924 |
States taxes, net of federal (benefit) expense |  |  | (314 | ) |  |  | 206 |  |  |  | (2,124 | )
Foreign rate differential |  |  | 11 |  |  |  | 59 |  |  |  | 390 |
Stock-based compensation benefit |  |  | (774 | ) |  |  | (2,744 | ) |  |  | (1,633 | )
Change in valuation allowance |  |  | (1,034 | ) |  |  | 671 |  |  |  | (444 | )
Research and development credits |  |  | (1,174 | ) |  |  | (1,131 | ) |  |  | (759 | )
Disqualified compensation expense |  |  | 1,806 |  |  |  | 2,219 |  |  |  | 993 |
Uncertain tax position |  |  | 385 |  |  |  | 349 |  |  |  | 333 |
Business divestitures |  |  | — |  |  |  | — |  |  |  | (241 | )
Expired attributes |  |  | 261 |  |  |  | — |  |  |  | — |
Foreign deferred adjustment |  |  | 1,354 |  |  |  | — |  |  |  | — |
Other |  |  | 175 |  |  |  | (35 | ) |  |  | 145 |
Effective income tax |  | $ | (514 | ) |  | $ | 5,774 |  |  | $ | 584 |
The components of the long-term deferred tax assets and liabilities, net were as follows (in thousands):
|  |  |  | June 30, |
|  |  |  | 2022 |  |  | 2021 |
Noncurrent deferred tax assets: |  |  |  |  |  |  |  |  |  |
Reserves and accruals |  |  |  | $ | 1,019 |  |  | $ | 1,608 |
Stock-based compensation expense |  |  |  |  | 3,400 |  |  |  | 3,841 |
Intangible assets |  |  |  |  | — |  |  |  | 4,444 |
Net operating loss |  |  |  |  | 34,684 |  |  |  | 30,440 |
Fixed assets |  |  |  |  | 217 |  |  |  | 135 |
Tax credits |  |  |  |  | 11,748 |  |  |  | 10,279 |
Operating lease liabilities |  |  |  |  | 1,894 |  |  |  | 3,108 |
Other |  |  |  |  | 39 |  |  |  | 38 |
Total noncurrent deferred tax assets |  |  |  |  | 53,001 |  |  |  | 53,893 |
Valuation allowance - long-term |  |  |  |  | (7,160 | ) |  |  | (8,193 | )
Noncurrent deferred tax assets, net |  |  |  |  | 45,841 |  |  |  | 45,700 |
Noncurrent deferred tax liabilities: |  |  |  |  |  |  |  |  |  |
Intangibles |  |  |  |  | (2 | ) |  |  | — |
Deferred acquisition costs |  |  |  |  | (215 | ) |  |  | — |
Operating lease right-of-use assets |  |  |  |  | (1,404 | ) |  |  | (2,364 | )
Noncurrent deferred tax liabilities |  |  |  |  | (1,621 | ) |  |  | (2,364 | )
Total deferred tax assets, net |  |  |  | $ | 44,220 |  |  | $ | 43,336 |
The Company has a gross deferred tax asset balance of $44.2 million and $43.3 million as of June 30, 2022 and 2021, respectively. The Company has a valuation allowance of approximately $7.2 million and $8.2 million as of June 30, 2022, and 2021, respectively primarily related to deferred tax assets of a foreign subsidiary and California research and development tax credits. The Company continues to reassess the ability to realize its deferred tax assets on a quarterly basis, and if there are unfavorable changes to actual operating results or to projections of future income, the Company may determine that it is more likely than not that such deferred tax assets may not be realizable. As of June 30, 2022 and 2021, the Company had a federal operating loss carryforward of approximately $138.1 million and $117.7 million. As of June 30, 2022 and 2021, the Company’s state operating loss carryforward was approximately $78.0 million and $70.4 million. With the exception of $54.7 million of federal net operating losses which can be carried forward indefinitely, the federal and state net operating losses, if not used, will begin to expire on June 30, 2035 and June 30, 2034. The operating loss carryforward in the India jurisdiction was approximately $3.6 million which will begin to expire on June 30, 2023. The Company has federal and California research and development tax credit carry-forwards of approximately $7.3 million and $10.3 million to offset future taxable income. The federal research and development tax credits, if not used, will begin to expire on June 30, 2034, while the state tax credit carry-forwards do not have an expiration date and may be carried forward indefinitely. Utilization of the operating loss carryforwards and credits may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended, and similar state provisions. The annual limitation may result in the expiration of operating loss carryforwards and credits before utilization. A reconciliation of the beginning and ending amounts of unrecognized tax benefits was as follows (in thousands):
|  | Fiscal Year Ended June 30, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Balance at the beginning of the year |  | $ | 4,756 |  |  | $ | 4,236 |  |  | $ | 3,727 |
Gross increases - current period tax positions |  |  | 542 |  |  |  | 535 |  |  |  | 406 |
Gross increases - prior period tax positions |  |  | — |  |  |  | — |  |  |  | 106 |
Gross decreases - prior period tax positions |  |  | — |  |  |  | (7 | ) |  |  | — |
Reductions as a result of lapsed statute of limitations |  |  | (2 | ) |  |  | (8 | ) |  |  | (3 | )
Balance at the end of the year |  | $ | 5,296 |  |  | $ | 4,756 |  |  | $ | 4,236 |
The Company’s policy is to include interest and penalties related to unrecognized tax benefits within the Company’s (benefit from) provision for income taxes. As of June 30, 2022, the Company has accrued $1.4 million for interest and penalties related to the unrecognized tax benefits. The balance of interest and penalties is recorded as a noncurrent liability in the Company’s consolidated balance sheet. As of June 30, 2022, unrecognized tax benefits of $2.9 million, if recognized, would affect the Company’s effective tax rate. The Company does not anticipate that the amount of existing unrecognized tax benefits will significantly increase or decrease within the next 12 months. The Company files income tax returns in the United States, various U.S. states and certain foreign jurisdictions and is no longer subject to U.S. federal, state and local, or non-U.S., income tax examinations by tax authorities for years before 2013. As of June 30, 2022, the tax years 2013 through 2020 remain open in the U.S., and the tax years 2015 through 2019 remain open in various foreign jurisdictions. The Company believes that adequate amounts have been reserved for any adjustments that may ultimately result from our examinations.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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