XML 20 R15.htm IDEA: XBRL DOCUMENT
v3.20.2

Provision for Income Taxes | 12 Months Ended
--- | ---
Jun. 30, 2020
Income Tax Disclosure [Abstract] |
Provision for Income Taxes | Note 8. Provision for Income Taxes A summary of the components of the provision for income taxes for the years ended June 30, 2020 and 2019 is as follows:
|  | 2020 |  |  | 2019 |
Current tax expense - federal |  | $ | 190,801 |  |  | $ | 274,889 |
Current tax (benefit) expense - state |  |  | (1,158 | ) |  |  | 6,010 |
Deferred tax (benefit) expense |  |  | (44,122 | ) |  |  | 258,040 |
Provision for income taxes |  | $ | 145,521 |  |  | $ | 538,939 |
Deferred income taxes reflect the impact of "temporary differences" between the amount of assets and liabilities for financial reporting purposes and such amounts measured by tax laws and regulations. These "temporary differences" are determined in accordance with ASC 740-10. The combined U.S. federal and state effective income tax rates of 11.1% and 18.7%, for 2020 and 2019 respectively, differed from the statutory U.S. federal income tax rate for the following reasons:
|  | 2020 |  |  | 2019 |
U.S. federal statutory income tax rate |  |  | 21.0 | % |  |  | 21.0 | %
Increase (reduction) in rate resulting from: |  |  |  |  |  |  |  |
State franchise tax, net of federal income tax benefit |  |  | (0.1 | ) |  |  | 0.2 |
ESOP cost versus Fair Market Value |  |  | 1.6 |  |  |  | 1.3 |
Dividend on allocated ESOP shares |  |  | (14.5 | ) |  |  | (3.0 | )
Stock-based compensation |  |  | 3.0 |  |  |  | 0.2 |
Foreign Derived Intangible Income Deduction |  |  | (0.2 | ) |  |  | (0.3 | )
Other |  |  | 0.3 |  |  |  | (0.7 | )
Effective tax rate |  |  | 11.1 | % |  |  | 18.7 | %
For the years ended June 30, 2020 and 2019 deferred income tax benefit and expense of $44,122 and $258,040, respectively, results from the changes in temporary differences for each year. The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities as of June 30, 2020 and 2019 are presented as follows:
|  | 2020 |  |  | 2019 |
Deferred tax assets: |  |  |  |  |  |  |  |
Accrued expenses |  | $ | 171,880 |  |  | $ | 164,388 |
ESOP |  |  | — |  |  |  | 17,702 |
Stock-based compensation |  |  | 56,280 |  |  |  | 56,382 |
Inventory - effect of uniform capitalization |  |  | 74,352 |  |  |  | 64,148 |
Other |  |  | 1,437 |  |  |  | 1,437 |
Total deferred tax assets |  | $ | 303,949 |  |  | $ | 304,057 |
Deferred tax liability: |  |  |  |  |  |  |  |
Property, plant and equipment - principally due |  |  |  |  |  |  |  |
to differences in depreciation methods |  | $ | 503,009 |  |  | $ | 541,150 |
Prepaid expenses |  |  | 33,893 |  |  |  | 39,982 |
Total deferred tax liability |  | $ | 536,902 |  |  | $ | 581,132 |
Net deferred tax liability |  | $ | (232,953 | ) |  | $ | (277,075 | )
In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projection for future taxable income over the period in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize the benefits of these temporary differences without consideration of a valuation allowance. As the result of the implementation of the FASB interpretation No. 48 (“FIN 48”), Accounting for Uncertainty in Income Taxes – An Interpretation of FASB Statement No. 109, the Company recognized no material adjustments to unrecognized tax benefits. As of June 30, 2020 and 2019, the Company has no unrecognized tax benefits. The Company recognizes interest and penalties in general and administrative expense. As of June 30, 2020 and 2019, the Company has not recorded any provision for accrued interest and penalties. The Company is subject to taxation in the United States and various state jurisdictions. By Federal statute tax returns are subject to audit for three years from date of filing unless the return was audited within that period. In general the majority of state statues follow similar guidelines. As such, the Company’s tax returns for tax years ending June 30, 2020, 2019, 2018, and 2017 remain open to examination by the respective taxing authorities.

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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration