XML 30 R16.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Income Taxes | 12 Months Ended
--- | ---
Jun. 30, 2017
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes As of June 30, 2017, the Company had utilized all of its U.S. Federal net operating loss (“NOL”) carry-forwards. As of June 30, 2017, state NOLs were $8.2 million and foreign NOLs were $1.0 million. The income tax expense for the years ended June 30, 2017, 2016 and 2015 consists of the following (in thousands):
| Year ended June 30,
| 2017 |  | 2016 |  | 2015
|  |  | (As Revised) |  | (As Revised)
Income / (Loss) Before Income Taxes: |  |  |  |  |
Domestic | $ | 1,642 |  |  | $ | 7,518 |  |  | $ | 8,249 |
International | 1,268 |  |  | 1,166 |  |  | 2,404 |
| $ | 2,910 |  |  | $ | 8,684 |  |  | $ | 10,653 |
Current Taxes: |  |  |  |  |
Federal | $ | 1,324 |  |  | $ | 4,180 |  |  | $ | 2,600 |
State | 137 |  |  | 561 |  |  | 446 |
Foreign | 510 |  |  | 455 |  |  | 1,663 |
Total Current Income Tax Provision | $ | 1,971 |  |  | $ | 5,196 |  |  | $ | 4,709 |
Deferred Taxes: |  |  |  |  |
Federal | $ | (473 | ) |  | $ | (2,326 | ) |  | $ | 97 |
State | (21 | ) |  | (105 | ) |  | 4 |
Foreign | (175 | ) |  | (187 | ) |  | (1,282 | )
Total Deferred Income Tax Provision | $ | (669 | ) |  | $ | (2,618 | ) |  | $ | (1,181 | )
Net Income Tax Provision | $ | 1,302 |  |  | $ | 2,578 |  |  | $ | 3,528 |
The effective income tax rate for the years ended June 30, 2017, 2016 and 2015 differs from the U.S. Federal statutory income tax rate due to the following:
| Year ended June 30,
| 2017 |  | 2016 |  | 2015
|  |  | (As Revised) |  | (As Revised)
Federal statutory income tax rate | 34.0 | % |  | 35.0 | % |  | 35.0 | %
State income taxes, net of federal benefit | 5.9 | % |  | 2.8 | % |  | 2.0 | %
Foreign tax rate difference | (4.6 | )% |  | (2.3 | )% |  | (1.3 | )%
Tax return to provision true-up | 0.6 | % |  | 0.7 | % |  | 1.3 | %
Other differences | (2.1 | )% |  | 0.0 | % |  | 0.0 | %
Permanent differences: |  |  |  |  |
— stock based compensation | 4.6 | % |  | 0.9 | % |  | 1.2 | %
— domestic production activities deduction | (3.3 | )% |  | (4.4 | )% |  | (1.6 | )%
— credit for increasing research activities | (0.9 | )% |  | (0.7 | )% |  | (3.8 | )%
— meals and entertainment | 3.4 | % |  | 1.0 | % |  | 1.0 | %
— penalties | 1.5 | % |  | 0.0 | % |  | 0.0 | %
— other | 4.3 | % |  | (3.9 | )% |  | (0.7 | )%
Change in valuation allowance | 1.3 | % |  | 0.6 | % |  | 0.0 | %
Net income tax provision | 44.7 | % |  | 29.7 | % |  | 33.1 | %
The components of the deferred tax assets and liabilities as of June 30, 2017 and 2016 are as follows (in thousands):
| June 30,
| 2017 |  | 2016
|  |  | (As Revised)
Deferred tax assets: |  |  |
Federal, state, and foreign net operating loss carryovers | $ | 536 |  |  | $ | 519 |
Stock option compensation | 1,531 |  |  | 1,098 |
Accrued vacation, allowance for returns, bonuses & other | 3,173 |  |  | 3,081 |
Gross deferred tax asset | $ | 5,240 |  |  | $ | 4,698 |
Deferred tax liabilities: |  |  |
Patents and trademarks | (253 | ) |  | (417 | )
Property & equipment | (588 | ) |  | (722 | )
Gross deferred tax liabilities | (841 | ) |  | (1,139 | )
Less: valuation allowance | (312 | ) |  | (276 | )
Deferred tax assets, net | $ | 4,087 |  |  | $ | 3,283 |
During the year ended June 30, 2016, the Company put into effect a permanent reinvestment assertion on the earnings of its foreign subsidiaries as the Company intends to reinvest all foreign earnings in its foreign operations, with the exception of certain foreign earnings that are subject to U.S. taxation. As of June 30, 2017, the U.S. consolidated group had approximately $2.4 million of permanently reinvested unremitted earnings from the Company's subsidiaries. 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. The Company believes it has no material uncertain tax positions and does not expect significant changes within the next twelve months in the amount of unrecognized tax benefits. Accordingly, The Company has not reserved for interest or penalties. The tax years open for examination by the IRS include returns for fiscal years ended June 30, 2014 through present and the open tax years by state tax authorities include returns for fiscal years ended June 30, 2012 through present. In addition, the IRS and state tax authorities may examine NOLs for any previous years if utilized by the Company. 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 ended June 30, 2012 through June 30, 2016.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration