XML 30 R19.htm IDEA: XBRL DOCUMENT v3.22.2.2
Note 12 - Income Taxes
 12 Months Ended
Jun. 30, 2022
Notes to Financial Statements  
Income Tax Disclosure [Text Block]

NOTE 12. INCOME TAXES

 

The Company and its non-Canadian subsidiaries file a consolidated U.S. federal income tax return. USCAN files a separate tax return in Canada. Provisions for income taxes include deferred taxes for temporary differences in the bases of assets and liabilities for financial and tax purposes resulting from the use of the liability method of accounting for income taxes.

 

Carryovers

 

For U.S. federal income tax purposes at June 30, 2022, the Company has no U.S. federal net operating loss carryovers and no capital loss carryovers.

 

For Canadian income tax purposes, USCAN has no net operating loss carryovers and no capital loss carryovers.

 

Additional Disclosures

 

A valuation allowance is provided when it is more likely than not that some portion of the deferred tax amount will not be realized. There was no valuation allowance included at June 30, 2022, or June 30, 2021.

 

The Company's components of income (loss) before tax by jurisdiction are as follows:

 

  

Year ended June 30,

 

(dollars in thousands)

 

2022

  

2021

 

United States

 $7,621  $17,889 

Canada

  (525)  19,549 

Total

 $7,096  $37,438 

 

The reconciliation of income tax computed at U.S. federal statutory rates to income tax expense is as follows:

 

  

Year ended June 30,

 
      

% of

      

% of

 

(dollars in thousands)

 

2022

  

Pretax

  

2021

  

Pretax

 

Tax expense at statutory rate

 $1,490   21.0% $7,862   21.0%

Tax expense (benefit) from change in foreign unrealized gain/loss

  (281)  (4.0)%  281   0.7%

Non-taxable investment income (loss)

  294   4.2%  (3,302)  (8.8)%

Change in valuation allowance

  -   0.0%  (2,762)  (7.4)%

Income from controlled foreign corporation

  307   4.3%  3,534   9.4%

Rate difference on foreign deferred income (loss)

  (262)  (3.7)%  777   2.1%

Rate difference on foreign income (loss)

  (29)  (0.4)%  1,075   2.9%

Foreign tax credit

  (153)  (2.2)%  (1,825)  (4.9)%

Other

  231   3.3%  (163)  (0.4)%

Total tax expense

 $1,597   22.5% $5,477   14.6%

 

Components of total tax expense (benefit) are as follows:

 

  

Year ended June 30,

 

(dollars in thousands)

 

2022

  

2021

 

Current tax expense - U.S. Federal

 $3,886  $2,004 

Current tax expense - Non-U.S.

  154   2,418 

Deferred tax expense (benefit) - U.S. Federal

  (2,209)  576 

Deferred tax expense (benefit) - Non-U.S.

  (234)  479 

Total tax expense

 $1,597  $5,477 

 

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Components of the Company’s deferred assets and liabilities are as follows:

 

  

June 30,

 

(dollars in thousands)

 

2022

  

2021

 

Deferred Income Tax Assets:

        

Accumulated depreciation

 $102  $110 

Investments in securities at fair value

  217   - 

Accrued expenses

  407   320 

Product start-up costs

  99   84 

Stock-based compensation expense

  164   - 

Other

  16   25 

Total Deferred Tax Assets

  1,005   539 

Deferred Income Tax Liabilities:

        

Investments in securities at fair value

 $-  $(2,600)

Prepaid expenses

  (64)  (60)

Other investments

  (430)  (389)

Equity method investments

  -   (40)

Foreign tax on undistributed earnings

  (259)  (249)

Total Deferred Tax Liabilities

  (753)  (3,338)

Net Deferred Tax Asset (Liability)

 $252  $(2,799)