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Income Taxes (Tables)
 12 Months Ended
Jun. 30, 2024
Income Tax Disclosure [Abstract]  
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
          
   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
          
   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: 

          
   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
          
   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
     
   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