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Note 13 - Income Taxes | 12 Months Ended
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Jun. 30, 2022
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | NOTE 13. 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 |
|  | As Restated |  |  |
United States |  | $ | 5,493 |  |  | $ | 17,889 |
Canada |  |  | (525 | ) |  |  | 19,549 |
Total |  | $ | 4,968 |  |  | $ | 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 |
|  |  | As Restated |  |  |  | As Restated |  |  |  |  |  |  |  |  |
Tax expense at statutory rate |  | $ | 1,042 |  |  |  | 21.0 | % |  | $ | 7,862 |  |  |  | 21.0 | %
Tax expense (benefit) from change in foreign unrealized gain/loss |  |  | (281 | ) |  |  | (5.7 | )% |  |  | 281 |  |  |  | 0.7 | %
Non-taxable investment income (loss) |  |  | 294 |  |  |  | 5.9 | % |  |  | (3,302 | ) |  |  | (8.8 | )%
Change in valuation allowance |  |  | - |  |  |  | 0.0 | % |  |  | (2,762 | ) |  |  | (7.4 | )%
Income from controlled foreign corporation |  |  | 307 |  |  |  | 6.2 | % |  |  | 3,534 |  |  |  | 9.4 | %
Rate difference on foreign deferred income (loss) |  |  | (262 | ) |  |  | (5.3 | )% |  |  | 777 |  |  |  | 2.1 | %
Rate difference on foreign income (loss) |  |  | (29 | ) |  |  | (0.6 | )% |  |  | 1,075 |  |  |  | 2.9 | %
Foreign tax credit |  |  | (153 | ) |  |  | (3.1 | )% |  |  | (1,825 | ) |  |  | (4.9 | )%
Other |  |  | 231 |  |  |  | 4.7 | % |  |  | (163 | ) |  |  | (0.4 | )%
Total tax expense |  | $ | 1,149 |  |  |  | 23.1 | % |  | $ | 5,477 |  |  |  | 14.6 | %
Components of total tax expense (benefit) are as follows:
|  | Year ended June 30, |
(dollars in thousands) |  | 2022 |  |  | 2021 |
|  | As Restated |  |  |
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 |  |  | (2,657 | ) |  |  | 576 |
Deferred tax expense (benefit) - Non-U.S. |  |  | (234 | ) |  |  | 479 |
Total tax expense |  | $ | 1,149 |  |  | $ | 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 |
|  | As Restated |  |  |
Deferred Income Tax Assets: |  |  |  |  |  |  |  |
Accumulated depreciation |  | $ | 102 |  |  | $ | 110 |
Investments in securities at fair value |  |  | 837 |  |  |  | - |
Accrued expenses |  |  | 407 |  |  |  | 320 |
Product start-up costs |  |  | 99 |  |  |  | 84 |
Stock-based compensation expense |  |  | 164 |  |  |  | - |
Other |  |  | 16 |  |  |  | 25 |
Total Deferred Tax Assets |  |  | 1,625 |  |  |  | 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) |  | $ | 872 |  |  | $ | (2,799 | )

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