Annual report pursuant to Section 13 and 15(d)

Income Taxes

v3.7.0.1
Income Taxes
12 Months Ended
Jun. 30, 2017
Income Tax Disclosure [Abstract]  
Income Taxes
11.  Income Taxes The following are the components of income taxes (in thousands):

 

Fiscal years ended June 30,   2017   2016
         
Current                
Federal   $ 1,712     $ 895  
State     314       153  
      2,026       1,048  

 

Fiscal years ended June 30,   2017   2016
Deferred                
Federal     (2 )     4  
State     (1 )     1  
      (3 )     5  
    $ 2,023     $ 1,053  

 

  The reconciliation of income tax expense computed at the federal statutory tax rate of 34% to the provision for income taxes is as follows (in thousands):

 

Fiscal years ended June 30,   2017   2016
         
Tax at the statutory rate   $ 1,765     $ 950  
State income taxes,
     net of federal benefit
    196       101  
Other     62       2  
    $ 2,023     $ 1,053  
                 
Effective tax rate     38.9%       37.7%  

 

  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 are as follows (in thousands):

 

Fiscal years ended June 30,   2017   2016
         
Deferred tax assets:                
Allowance for doubtful accounts   $ 39     $ 60  
Inventory capitalization     94       30  
Stock compensation     159        
Other     86       31  
      378       121  
                 
Deferred tax liabilities:                
Goodwill Amortization     (101 )      
Depreciation     (153 )      
      (254 )      
Net deferred income tax assets   $ 124     $ 121  

  

 

As of June 30, 2017, the Company was subject to potential federal and state tax examinations for the tax years including and subsequent to 2013.