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Income Taxes | 12 Months Ended
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Jun. 30, 2013
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes As of June 30, 2013, the Company had a Federal net operating loss (“NOL”) carry-forward of approximately $3.3 million. The net operating losses expire in 2029 and are subject to review by the Internal Revenue Service, and are subject to U.S. Internal Revenue Code Section 382 limitations. State NOLs are $9.9 million. Foreign NOLs are $1.0 million. The income tax expense (benefit) for the years ended June 30, 2013, 2012, and 2011 consists of the following (in thousands):
| 2013 |  | 2012 |  | 2011
Income / (Loss) Before Income Taxes: |  |  |  |  |
Domestic | $ | 11,250 |  |  | $ | 14,556 |  |  | $ | (50,535 | )
International | (97 | ) |  | 116 |  |  | (165 | )
| $ | 11,153 |  |  | $ | 14,672 |  |  | $ | (50,700 | )
Current Taxes: |  |  |  |  |
Federal | $ | 4,087 |  |  | $ | 3,758 |  |  | $ | — |
State | 383 |  |  | 1,121 |  |  | 92 |
Foreign | (33 | ) |  | 47 |  |  | — |
Total Current Income Tax Provision | $ | 4,437 |  |  | $ | 4,926 |  |  | $ | 92 |
Deferred Taxes: |  |  |  |  |
Federal | (706 | ) |  | (2,110 | ) |  | — |
State | (77 | ) |  | (601 | ) |  | — |
Foreign | (109 | ) |  | (12 | ) |  | — |
Total Deferred Income Tax Provision | $ | (892 | ) |  | $ | (2,723 | ) |  | $ | — |
Net Income Tax Provision | $ | 3,545 |  |  | $ | 2,203 |  |  | $ | 92 |
The effective income tax rate for the years ended June 30, 2013 , 2012 and 2011 differs from the U.S. Federal statutory income tax rate due to the following:
| 2013 |  | 2012 |  | 2011
Federal statutory income tax rate | 35.00 | % |  | 35.00 | % |  | (34.00 | )%
State income taxes, net of federal benefit | 1.76 | % |  | 5.50 | % |  | 0.24 | %
Tax return to provision true-up | (2.51 | )% |  | (1.01 | )% |  | (1.35 | )%
Permanent differences: |  |  |  |  |
— interest on convertible debt | 0.00 | % |  | 0.00 | % |  | 3.44 | %
— change in derivative liability | 0.00 | % |  | 16.14 | % |  | 32.44 | %
— stock option compensation | 0.78 | % |  | 0.30 | % |  | 0.21 | %
— domestic production activities deduction | (2.73 | )% |  | 0.00 | % |  | 0.00 | %
— credit for increasing research activities | (0.67 | )% |  | 0.00 | % |  | 0.00 | %
— other | 0.08 | % |  | (0.44 | )% |  | 0.12 | %
Decrease in valuation allowance | 0.00 | % |  | (39.45 | )% |  | (0.91 | )%
Net income tax provision (benefit) | 31.71 | % |  | 16.04 | % |  | (0.18 | )%
The components of the deferred tax assets and liabilities as of June 30, 2013 and 2012 are as follows (in thousands):
| 2013 |  | 2012
Deferred tax assets: |  |  |
Federal, state, and foreign net operating loss carryovers | $ | 1,768 |  |  | $ | 2,453 |
Stock option compensation | 1,212 |  |  | 988 |
Accrued vacation, allowance for returns, bonuses & other | 2,493 |  |  | 600 |
Gross deferred tax asset | $ | 5,473 |  |  | $ | 4,041 |
Deferred tax liabilities: |  |  |
Patents and trademarks | (536 | ) |  | (587 | )
Change in tax accounting methods | (297 | ) |  | (44 | )
Property & equipment | (824 | ) |  | (540 | )
Gross deferred tax liabilities | (1,657 | ) |  | (1,171 | )
Less: valuation allowance | (201 | ) |  | (147 | )
Deferred tax assets, net | $ | 3,615 |  |  | $ | 2,723 |
The Company has adopted accounting guidance for uncertain tax positions which provides that in order to recognize an uncertain tax benefit, the taxpayer must be more likely than not of sustaining the position, and the measurement of the benefit is calculated as the largest amount that is more than 50% likely to be realized upon recognition of the benefit. We believe the Company has no material uncertain tax positions and do not expect significant changes within the next twelve months in the amount of unrecognized tax benefits. Accordingly, we have not reserved for interest or penalties. The tax years open for examination by the Internal Revenue Service (“IRS”) include returns for fiscal years June 30, 2010 through present and the open tax years by state tax authorities include returns for fiscal years June 30, 2009 through present. In addition, the IRS and state tax authorities may examine NOLs for any previous years if utilized by the Company. The total recognized tax benefit from settlement of stock based awards for the period ending June 30, 2013 was $1.7 million. The Company conducts its business globally. As a result, the Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions, and are subject to examination for the open tax years of June 30, 2009 through June 30, 2012. The Company recognizes interest expense and penalties related to income tax matters in income tax expense. No significant amounts were recorded related to interest expense and penalties related to income tax matters by the Company during the years ended June 30, 2013, 2012, or 2011, respectively.

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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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