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6. INCOME TAXES (Tables) | 12 Months Ended
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Jun. 30, 2020
Income Tax Disclosure [Abstract] |
Schedule of Income tax provision from continuing operations | Income tax provision for the years ended June 30, 2020 and 2019 consists of the following:
|  | Year Ended June 30, |
|  | 2020 |  |  | 2019 |
Current income tax expense: |  |  |  |  |  |  |  |
Federal |  | $ | 33,039 |  |  | $ | – |
State |  |  | 2,475 |  |  |  | 801 |
|  |  | 35,514 |  |  |  | 801 |
Deferred income tax expense (benefit): |  |  |  |  |  |  |  |
Federal |  |  | 1,323,265 |  |  |  | (345,083 | )
State |  |  | (293,773 | ) |  |  | – |
Foreign |  |  | 315,295 |  |  |  | (84,463 | )
|  |  | 1,344,787 |  |  |  | (429,546 | )
Provision (benefit) for income taxes |  | $ | 1,380,301 |  |  | $ | (428,745 | )
Schedule of effective income tax rate | The provision (benefit) for income taxes reconciles to the amount computed by applying the effective federal statutory income tax rate to the income before provision for income taxes as follows:
|  | Year Ended June 30, |
|  | 2020 |  |  | 2019 |
Federal income tax (benefit), at statutory rate of 21% applied to earnings before income taxes and extraordinary items |  | $ | 1,533,352 |  |  | $ | (438,706 | )
State tax, net of federal tax benefit |  |  | 128,406 |  |  |  | (50,881 | )
Nondeductible expenses |  |  | (45,345 | ) |  |  | 4,129 |
R&D credits |  |  | (36,841 | ) |  |  | (36,127 | )
Global intangible low-taxed income |  |  | 31,060 |  |  |  | – |
Foreign rate difference |  |  | 74,256 |  |  |  | 40,660 |
Other |  |  | 53,943 |  |  |  | 666 |
Rate reduction |  |  | – |  |  |  | 51,514 |
Change in valuation allowance |  |  | (358,530 | ) |  |  | – |
Provision (benefit) for income taxes |  | $ | 1,380,301 |  |  | $ | (428,745 | )
Schedule of deferred tax assets | Significant components of our deferred tax assets are as follows:
|  | June 30, 2020 |  |  | June 30, 2019 |
Deferred tax asset: |  |  |  |  |  |  |  |
Net operating losses |  | $ | 507,402 |  |  | $ | 1,767,365 |
State tax |  |  | 520 |  |  |  | 169 |
Lease accounting |  |  | 10,078 |  |  |  | – |
Intangibles |  |  | 38,154 |  |  |  | 22,678 |
Tax credits |  |  | 346,091 |  |  |  | 666,380 |
Inventory reserve |  |  | 103,450 |  |  |  | 165,160 |
Other, net |  |  | 38,085 |  |  |  | 44,853 |
Total deferred tax assets |  |  | 1,043,780 |  |  |  | 2,666,605 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Deferred state taxes |  |  | (61,692 | ) |  |  | – |
Fixed asset |  |  | (43,900 | ) |  |  | (25,100 | )
Total deferred tax liabilities |  |  | (105,592 | ) |  |  | (25,100 | )
Less valuation allowance |  |  | – |  |  |  | (358,530 | )
Net deferred tax asset |  | $ | 938,188 |  |  | $ | 2,282,975 |
Schedule of unrecognized tax benefits | A reconciliation of the beginning and ending balance of unrecognized tax benefits, which have been considered in the Company's computation of its deferred tax assets, is as follows:
Balance as of June 30, 2018 |  | $ | 242,187 |
Gross increase |  |  | 33,075 |
Balance as of June 30, 2019 |  |  | 275,262 |
Gross increase |  |  | 21,570 |
Balance as of June 30, 2020 |  | $ | 296,832 |

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- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
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