XML 25 R12.htm IDEA: XBRL DOCUMENT
v3.5.0.2

INCOME TAXES (Notes) | 12 Months Ended
--- | ---
Jun. 30, 2016
Income Tax Disclosure [Abstract] |
Income Taxes | The Company utilizes the liability method of accounting for income taxes. The liability method measures the expected income tax impact of future taxable income and deductions implicit in the Consolidated Balance Sheets. The income tax provision in 2016 and 2015 consisted of the following:
Year Ended June 30, |  | 2016 |  | 2015
Current: |  |  |  |  |  |
Federal |  | $ | 169,350 |  |  | $ | (100,126 | )
State |  | 2,675 |  |  | (167,282 | )
Deferred |  | 702,013 |  |  | 284,783 |
Total income tax provision |  | $ | 874,038 |  |  | $ | 17,375 |
The 2016 and 2015 tax results in an effective rate different than the federal statutory rate because of the following:
Year Ended June 30, |  | 2016 |  | 2015
Federal income tax expense at statutory rate |  | $ | 769,433 |  |  | $ | 169,996 |
State income tax expense (benefit), net of federal income tax benefit |  | 91,660 |  |  | (21,442 | )
Decrease in valuation allowance |  | (370,000 | ) |  | — |
Stock-based compensation |  | 447,180 |  |  | 53,596 |
Adjustments for unrecognized tax benefits |  | — |  |  | (175,000 | )
Other |  | (64,235 | ) |  | (9,775 | )
Total income tax provision |  | $ | 874,038 |  |  | $ | 17,375 |
Temporary differences which give rise to deferred income tax assets and liabilities at June 30, 2016 and June 30, 2015 include:
|  | 2016 |  | 2015
Deferred income tax assets: |  |  |  |  |  |
Deferred compensation |  | $ | 864,954 |  |  | $ | 835,270 |
Stock-based compensation |  | 603,159 |  |  | 889,325 |
Accrued expenses and reserves |  | 1,390,910 |  |  | 2,075,601 |
Federal and state net operating loss carryforwards |  | 418,296 |  |  | 463,237 |
Valuation allowance |  | (409 | ) |  | (370,409 | )
Equipment and leasehold improvements |  | — |  |  | 11,566 |
Other |  | 5,979 |  |  | 14,650 |
Total deferred income tax assets |  | 3,282,889 |  |  | 3,919,240 |
Deferred income tax liabilities: |  |  |  |  |  |
Equipment and leasehold improvements |  | (67,390 | ) |  | — |
Other |  | (2,943 | ) |  | (4,671 | )
Net deferred income tax assets |  | $ | 3,212,556 |  |  | $ | 3,914,569 |
Deferred income tax balances reflect the effects of temporary differences between the tax bases of assets and liabilities and their carrying amounts. These differences are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered. The recognition of these deferred tax balances will be realized through normal recurring operations and, as such, the Company has recorded the full value of such expected benefits. The Company has no federal net operating loss carryforwards as of June 30, 2016. The Company has net operating loss carryforwards in the state of Wisconsin totaling $5,892,509 which expire in fiscal years 2030 through 2035. In addition, the Company has operating loss carryforwards in other states totaling $324,326, which expire in fiscal years 2026 through 2035. ASC Topic 740 "Income Taxes" prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken, or expected to be taken, in a tax return. There were no additional significant matters determined to be unrecognized tax benefits taken or expected to be taken in a tax return that have been recorded on the Company’s consolidated financial statements for the year ended June 30, 2016. Additionally, ASC Topic 740 provides guidance on the recognition of interest and penalties related to income taxes. No interest or penalties related to income taxes has been accrued or recognized as of and for the years ended June 30, 2016 and 2015. The Company records interest related to unrecognized tax benefits in interest expense. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
|  | 2016 |  | 2015
Unrecognized tax benefits at beginning of year |  | $ | — |  |  | $ | 175,000 |
Reductions based on settlements with taxing authorities |  | — |  |  | (175,000 | )
Unrecognized tax benefits at end of year |  | $ | — |  |  | $ | — |
In the fiscal year ended June 30, 2015, the Company settled its position with a state tax authority and reduced the unrecognized tax benefits to zero. The Company does not believe it has any unrecognized tax benefits as of June 30, 2016. Any changes to the Company's unrecognized tax benefits during the fiscal years ended June 30, 2016 and 2015 would impact the effective tax rate. The Company files income tax returns in the United States federal jurisdiction and in several state jurisdictions. The Company’s federal tax returns for tax years beginning July 1, 2012 or later are open. For states in which the Company files state income tax returns, the statute of limitations is generally open for tax years ended June 30, 2012 and forward. The following are the changes in the valuation allowance:
Year Ended June 30, |  | Balance, beginning of year |  | Increase in valuation allowance |  | Release of valuation allowance |  | Balance, end of year
2016 |  | $ | (370,409 | ) |  | — |  |  | 370,000 |  |  | $ | (409 | )
2015 |  | $ | (370,409 | ) |  | — |  |  | — |  |  | $ | (370,409 | )

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 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 2: 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=65882285&loc=d3e32559-109319 Reference 3: 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=65882285&loc=d3e32718-109319 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=65882285&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=65882285&loc=d3e32537-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration