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Income Taxes (Tables)

12 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense

The income tax expense for the fiscal years ended June 30, 2024 and 2023 consists of the following (in thousands):

			Years ended June 30,
			2024						2023
Income Before Income Taxes:
Domestic			$	2,940					$	2,464
International			1,410						1,535
			$	4,350					$	3,999
Current Taxes:
Federal			$	1,457					$	2,012
State			246						436
Foreign			984						686
Total Current Income Tax Provision			$	2,687					$	3,134
Deferred Taxes:
Federal			$	(1,281)					$	(1,400)
State			(151)						(303)
Foreign			158						28
Total Deferred Income Tax Provision			$	(1,274)					$	(1,675)
Net Income Tax Provision			$	1,413					$	1,459

Schedule of The Effective Income Tax Rate Differs from the U.S. Federal Statutory Income Tax Rate

The effective income tax rate for the fiscal years ended June 30, 2024 and 2023 differs from the U.S. Federal statutory income tax rate due to the following:

			Years ended June 30,
			2024						2023
Federal statutory income tax rate			21.0		%				21.0		%
State income taxes, net of federal benefit			1.2		%				0.8		%
Foreign tax rate difference			8.0		%				8.3		%
Tax return to provision true-up			(4.3)		%				3.2		%
Limit on future stock compensation due to 162(m)			2.8		%				4.3		%
Foreign withholding tax			2.6		%				0.4		%
Other differences			1.6		%				(0.3)		%
Revalue of deferred for change in federal tax rate			0.0		%				0.1		%
Permanent differences:
— stock-based compensation			(8.3)		%				5.8		%
— current year section 162(m) limitation			7.0		%				0.0		%
— foreign derived intangible income deduction			(0.7)		%				(5.8)		%
— tax credits			(12.1)		%				(5.3)		%
— meals and entertainment			1.3		%				0.8		%
— removal of additional permanent reinvestment assertions			1.2		%				0.3		%
— change in uncertain tax positions			1.2		%				0.0		%
— accrual for foreign tax audits			7.7		%				0.0		%
— other permanent differences			1.8		%				2.1		%
Change in valuation allowance			0.5		%				0.7		%
Net income tax provision			32.5		%				36.5		%

Schedule of The Components of the Deferred Tax Assets and Liabilities

The components of the deferred tax assets and liabilities as of June 30, 2024 and 2023 are as follows (in thousands):

			June 30,
			2024						2023
Deferred tax assets:
Federal, state, and foreign net operating loss carryovers			$	271					$	250
Stock option compensation			360						549
Section 174 costs			2,578						955
Lease liability			3,223						3,100
Accrued vacation, allowance for returns, bonuses & other			2,119						3,005
Gross deferred tax asset			$	8,551					$	7,859
Deferred tax liabilities:
Patents and trademarks			$	(30)					$	(66)
Property & equipment			(798)						(1,571)
Right of use asset			(2,263)						(2,057)
Other			(472)						(470)
Gross deferred tax liabilities			(3,563)						(4,164)
Less: valuation allowance			(720)						(704)
Deferred tax assets, net			$	4,268					$	2,991

Summary of Valuation Allowance

The change in the valuation allowance were as follows (in thousands):

			Years ended June 30,
			2023						2022
Beginning balance			$	704					$	675
Increases			16						29
Ending balance			$	720					$	704

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance.

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