Annual report pursuant to Section 13 and 15(d)

Income Taxes (Tables)

v3.21.2
Income Taxes (Tables)
12 Months Ended
Jun. 30, 2021
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Taxes

The following are the components of income taxes (benefit) (in thousands):

Fiscal years ended June 30,

2021

2020

 

Current

Federal

$

(186

)

$

489

State

97

262

(89

)

751

 

Deferred

Federal

1,402

(37

)

State

191

(141

)

1,593

(178

)

$

1,504

$

573

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% for the fiscal years ended June 30, 2021 and 2020 to the provision for income taxes is as follows (in thousands):

Fiscal years ended June 30,

2021

2020

 

Tax at the statutory rate

$

2,076

$

283

State income taxes, net of federal benefit

265

67

Nondeductible compensation

348

340

PPP Loan forgiveness

(1,462

)

-

Other

277

(117

)

$

1,504

$

573

 

Effective tax rate

15.2

%

42.5

%

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 basis of assets and liabilities for financial reporting purposes and the basis used for income tax purposes. Significant components of the Company’s current and noncurrent deferred tax assets and liabilities as of June 30, 2021 and 2020 were as follows (in thousands):

Fiscal years ended June 30,

2021

2020

 

Deferred tax assets:

Allowance for doubtful accounts

$

182

$

106

Inventory capitalization

353

385

Stock compensation

557

705

Accrued liabilities

605

221

Other

69

554

1,766

1,971

 

Deferred tax liabilities:

Goodwill

(2,974

)

(2,120

)

Depreciation

(1,533

)

(412

)

Intangible assets

(1,268

)

(1,167

)

Other

(199

)

-

(5,974

)

(3,699

)

Net deferred income tax (liabilities) assets

$

(4,208

)

$

(1,728

)