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Income Taxes
 12 Months Ended
Jun. 30, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Sources of Pretax Income (Loss)Fiscal Years Ended
 June 30,
2024		June 30,
2023		June 30,
2022
 (In thousands)
Domestic$(27,119)$(52,636)$(53,258)
Foreign2,107 (125)(5,025)
Total$(25,012)$(52,761)$(58,283)
Components of the Provision for Income Tax Expense (Benefit)Fiscal Years Ended
 June 30,
2024		June 30,
2023		June 30,
2022
 (In thousands)
Current:
Federal$(80)$(369)$230 
State44 (31)28 
Foreign— — 1 
Current Total(36)(400)259 
Deferred:
Federal— — 2,504 
State— — 2,858 
Foreign— — (4)
Deferred Total— — 5,358 
Total$(36)$(400)$5,617 
Reconciliation Between the Expected Income Tax Provision Applying the Domestic Federal Statutory Tax Rate and the Reported Income Tax ProvisionFiscal Years Ended
June 30,
2024		June 30,
2023		June 30,
2022
 (In thousands)
Expected benefit for federal income taxes at the statutory rate$(5,253)$(11,080)$(12,239)
State income taxes, net of federal benefit(2,065)(2,320)(1,971)
Impairment of non-deductible goodwill(1)
— — 1,132 
Charges without tax benefit, net of non-taxable income384 358 265 
Change in valuation allowance(2)
8,542 12,595 17,943 
Excess tax expense (benefit) on stock-based compensation(61)1,216 1,019 
Research and development and other tax credits(1,299)(1,175)(613)
Foreign tax differential388 50 (232)
Federal rate differential net operating loss carryback— — 141 
Change in uncertain tax positions(81)(90)(120)
Other(591)46 292 
Provision (benefit) for federal, state and foreign income taxes$(36)$(400)$5,617 


(1)In fiscal 2022, we impaired $18.3 million of goodwill, which included $5.4 million of non-deductible goodwill. See Note 4 - Goodwill and Other Intangible Assets for more information about the impairments.
(2)Due to the existence of a cumulative loss over a three-year period, we recorded a full valuation allowance against our deferred tax assets in fiscal 2022 and recorded additional valuation allowances against newly generated deferred tax assets in fiscal 2023 and 2024. These assets are primarily comprised of federal net operating losses, which have an indefinite carryforward, federal tax credits and state net operating losses. To the extent we generate taxable income in the future, or cumulative losses are no longer present and our future projections for growth or tax planning strategies are demonstrated, we will realize the benefit associated with the net operating losses for which the valuation allowance has been provided.
Significant Components of our Deferred Tax Assets and Liabilities

June 30,
2024		June 30,
2023
 (In thousands)
Deferred tax assets:
Accruals and reserves$283 $504 
Bad debt reserve52 273 
Insurance reserve941 913 
Net operating loss benefit and credit carryforwards29,626 26,888 
Accrued compensation and pension1,273 964 
Stock compensation expense on nonvested restricted stock units3,438 1,794 
Book over tax amortization5,607 7,218 
Research and development capitalization12,425 6,592 
Foreign currency translation and other1,324 1,608 
Valuation allowance(49,434)(41,060)
Total deferred tax assets5,535 5,694 
Deferred tax liabilities:
Tax over book depreciation5,081 5,472 
Other479 248 
Total deferred tax liabilities5,560 5,720 
Net deferred tax liability$(25)$(26)

As reported in the Consolidated Balance Sheets:

June 30,
2024		June 30,
2023
 (In thousands)
Deferred income tax assets$— $— 
Deferred income tax liabilities(25)(26)
Net deferred tax liability$(25)$(26)

Valuation Allowance
We placed a valuation allowance on our deferred tax assets in the second quarter of fiscal 2022 due to the existence of a cumulative loss over a three-year period. We will continue to place valuation allowances on newly generated deferred tax assets and will realize the benefit associated with the deferred tax assets for which the valuation allowance has been provided to the extent we generate taxable income in the future.
Operating Loss and Tax Credit Carryforwards
We have net operating loss carryforwards and tax credit carryforwards in federal, state and foreign jurisdictions. The valuation allowance at June 30, 2024 and June 30, 2023 reduces the recognized tax benefit of these carryforwards to an amount that is more likely than not to be realized. The gross carryforwards will generally expire as shown below for each jurisdiction:
Operating Loss and Tax Credit CarryforwardsExpiration PeriodAmount (in thousands)
Federal net operating lossIndefinite$40,554 
Federal tax creditsJune 2041 to June 2044$4,849 
Federal foreign tax creditsJune 2025$270 
State net operating lossesJune 2025 to indefinite$106,191 
State tax creditsJune 2033 to indefinite$984 
Foreign net operating lossesJune 2033 to June 2044$31,883 
Foreign tax creditsJune 2035 to June 2044$682 

Other
In general, it is our practice and intention to reinvest the earnings of our foreign subsidiaries in our foreign operations. We do not provide for outside basis differences under the indefinite reinvestment assertion of ASC 740-30.
We file tax returns in multiple domestic and foreign taxing jurisdictions. With a few exceptions, we are no longer subject to examination by taxing authorities through fiscal 2019. At June 30, 2024, we updated our evaluation of our open tax years in all known jurisdictions. As of June 30, 2024, we have a $0.1 million liability for unrecognized tax positions and the payment of related interest and penalties. We treat the related interest and penalties as income tax expense. Due to the uncertainties related to these tax matters, we are unable to make a reasonably reliable estimate as to when cash settlement with a taxing authority will occur.