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Income Taxes (Tables) | 12 Months Ended
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Jun. 30, 2024
Income Tax Disclosure [Abstract] |
Schedule of components of income tax expense |
Schedule of components of income tax expense |  |  |  |  |  |  |  |
|  | Years Ended June 30, |
|  | 2024 |  |  | 2023 |
|  | (In thousands) |
Current: |  |  |  |  |  |  |  |
Federal |  | $ | – |  |  | $ | – |
State |  |  | 380 |  |  |  | 294 |
Foreign |  |  | 332 |  |  |  | 308 |
Total Current taxes |  | $ | 712 |  |  | $ | 602 |
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | 33 |  |  |  | 146 |
State |  |  | – |  |  |  | – |
Foreign |  |  | – |  |  |  | – |
Provision for income taxes |  | $ | 745 |  |  | $ | 748 |
Schedule of income before income taxes |
Schedule of income before income taxes |  |  |  |  |  |  |  |
|  | Years Ended June 30, |
|  | 2024 |  |  | 2023 |
|  | (In thousands) |
United States |  | $ | (4,655 | ) |  | $ | (9,168 | )
Foreign |  |  | 884 |  |  |  | 936 |
Loss before income taxes |  | $ | (3,771 | ) |  | $ | (8,232 | )
Schedule of effective income tax reconciliation |
Schedule of deferred tax assets and liabilities |  |  |  |  |  |  |  |
|  | Years Ended June 30, |
|  | 2024 |  |  | 2023 |
|  | (In thousands) |
Deferred tax assets: |  |  |  |  |  |  |  |
Tax losses and credits |  | $ | 8,984 |  |  | $ | 9,882 |
Reserves not currently deductible |  |  | 2,738 |  |  |  | 2,054 |
Capitalized research and development expenses |  |  | 7,511 |  |  |  | 6,975 |
Deferred compensation |  |  | 1,509 |  |  |  | 1,301 |
Inventory capitalization |  |  | 2,570 |  |  |  | 2,390 |
Lease liabilities |  |  | 2,299 |  |  |  | 2,848 |
Depreciation and amortization |  |  | 172 |  |  |  | – |
Identified intangibles |  |  | 1,172 |  |  |  | 446 |
Other |  |  | 98 |  |  |  | 263 |
Gross deferred tax assets |  |  | 27,053 |  |  |  | 26,159 |
Valuation allowance |  |  | (24,731 | ) |  |  | (22,532 | )
Deferred tax assets, net |  |  | 2,322 |  |  |  | 3,627 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
State taxes |  |  | (395 | ) |  |  | (518 | )
Right-of-use assets |  |  | (2,106 | ) |  |  | (2,676 | )
Depreciation and amortization |  |  | – |  |  |  | (579 | )
Deferred tax liabilities |  |  | (2,501 | ) |  |  | (3,773 | )
Net deferred tax assets (liabilities) |  | $ | (179 | ) |  | $ | (146 | )
Our net deferred tax liability of $179,000 and $146,000 at June 30, 2024 and 2023, respectively, represents the excess of our indefinite-lived deferred tax liabilities over our indefinite-lived deferred tax assets, and are recorded in other non-current liabilities on the accompanying consolidated balance sheets at June 30, 2024 and 2023. Realization of deferred tax assets is dependent upon the generation of future taxable income. As required by ASC 740, we have evaluated the positive and negative evidence bearing upon our ability to realize the deferred tax assets as of June 30, 2024 and 2023. We have determined that it was more likely than not that Lantronix would not realize the deferred tax assets due to our cumulative losses and uncertainty of generating future taxable income. The following table presents a reconciliation of the provision (benefit) for income taxes to taxes computed at the U.S. federal statutory rate:
Schedule of effective income tax reconciliation |  |  |  |  |  |  |  |
|  | Years Ended June 30, |
|  | 2024 |  |  | 2023 |
|  | (In thousands) |
Statutory federal provision (benefit) for income taxes |  | $ | (792 | ) |  | $ | (1,729 | )
Increase (decrease) resulting from: |  |  |  |  |  |  |  |
State taxes |  |  | 300 |  |  |  | 232 |
Stock options |  |  | 431 |  |  |  | (283 | )
Change in valuation allowance |  |  | 349 |  |  |  | 2,222 |
Change in state tax rate |  |  | 261 |  |  |  | – |
Global intangible low-tax income inclusion |  |  | – |  |  |  | 2 |
Foreign tax rate variances |  |  | 146 |  |  |  | 112 |
Other |  |  | 50 |  |  |  | 192 |
Provision for income taxes |  | $ | 745 |  |  | $ | 748 |
Schedule of effective income tax reconciliation |
Schedule of effective income tax reconciliation |  |  |  |  |  |  |  |
|  | Years Ended June 30, |
|  | 2024 |  |  | 2023 |
|  | (In thousands) |
Statutory federal provision (benefit) for income taxes |  | $ | (792 | ) |  | $ | (1,729 | )
Increase (decrease) resulting from: |  |  |  |  |  |  |  |
State taxes |  |  | 300 |  |  |  | 232 |
Stock options |  |  | 431 |  |  |  | (283 | )
Change in valuation allowance |  |  | 349 |  |  |  | 2,222 |
Change in state tax rate |  |  | 261 |  |  |  | – |
Global intangible low-tax income inclusion |  |  | – |  |  |  | 2 |
Foreign tax rate variances |  |  | 146 |  |  |  | 112 |
Other |  |  | 50 |  |  |  | 192 |
Provision for income taxes |  | $ | 745 |  |  | $ | 748 |
Schedule of uncertain tax position |
Schedule of uncertain tax position |  |  |  |
|  | Year Ended |
|  | June 30, 2024 |
|  | (In thousands) |
Balance as of June 30, 2023 |  | $ | 4,813 |
Change in balances related to uncertain tax positions |  |  | (524 | )
Balance as of June 30, 2024 |  | $ | 4,289 |

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