Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.19.2
Income Taxes (Tables)
12 Months Ended
Jun. 30, 2019
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Taxes
The following are the components of income taxes (in thousands):

 

Fiscal years ended June 30,   2019   2018
         
Current                
Federal   $ 673     $ 1,192  
State     339       542  
      1,012       1,734  
                 
Deferred                
Federal     663       562  
State     198       120  
      861       682  
    $ 1,873     $ 2,416
Schedule of Reconciliation of Income Tax Expense Computed at the Federal Statutory Tax Rate of Provision for Income Taxes

The reconciliation of income tax expense computed at the federal statutory tax rate of 21% and 28% for the fiscal years ended June 30, 2019 and 2018, respectively, to the provision for income taxes is as follows (in thousands):

Fiscal years ended June 30,   2019   2018
         
Tax at the statutory rate   $ 1,180     $ 1,788  
State income taxes,
     net of federal benefit
    323       319  
Other     370       309  
    $ 1,873     $ 2,416  
                 
Effective tax rate     33.4 %     37.9 %
Schedule of Significant Components of the Company's Current and Noncurrent Deferred Tax Assets and Liabilities

Deferred income taxes reflect the net tax effect of temporary differences between the bases of assets and liabilities for financial reporting purposes and the bases used for income tax purposes.  Significant components of the Company’s current and noncurrent deferred tax assets and liabilities as of June 30, 2019 and 2018 were as follows (in thousands):

Fiscal years ended June 30,   2019   2018
         
Deferred tax assets:                
Allowance for doubtful accounts   $ 116     $ 66  
Inventory capitalization     471       303  
Stock compensation     499       277  
Other     46       74  
      1,132       720  
                 
Deferred tax liabilities:                
Goodwill     (1,375 )     (664 )
Depreciation     (1,217 )     (614 )
Intangible assets     (248 )      
      (2,840 )     (1,278 )
Net deferred income tax (liabilities) assets   $ (1,708 )   $ (558 )