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 tax provision
Income (loss) from operations before provision for income taxes is shown below:
in thousands
 
 
 
 
 
Years Ended June 30,
 
2019
 
2018
 
U.S.
 
$
3,251

 
$
(3,446
)
 
Foreign
 
26

 
35

 
Net income (loss) before provision for income taxes
 
$
3,277

 
$
(3,411
)
 
 
 
 
 
 
 

The Company files a consolidated federal income tax return based on a June 30 tax year end. The provision for income tax expense for the years ended June 30, 2019 and 2018 consists of the following:
in thousands
 
 
 
 
 
Years Ended June 30,
 
2019
 
2018
 
Current:
 
 
 
 
 
Federal
 
(4
)
 
42

 
State and local
 
304

 
(96
)
 
Foreign
 
6

 
(27
)
 
 
 
306

 
(81
)
 
Deferred:
 
 
 
 
 
Federal
 
668

 
361

 
State and local
 
41

 
(272
)
 
Foreign
 
—

 
—

 
 
 
709

 
89

 
 
 
 
 
 
 
Provision for income tax expense
 
$
1,015

 
$
8

 
 
 
 
 
 
 
Schedule of effective income tax rate
A reconciliation of the income tax provisions to the amounts computed by applying the statutory federal income tax rate (21.00% for 2019, and 28.06% for 2018) to income before income tax provisions for the years ended June 30, 2019 and 2018, are set forth below:
in thousands
 
 
 
 
 
 
Years Ended June 30,
 
2019
 
2018
 
Federal income tax
 
$
688

 
$
(957
)
 
State tax, net of federal benefit
 
291

 
(98
)
 
Uncertain tax positions
 
69

 
(50
)
 
Change in valuation allowance
 
—

 
(56
)
 
Tax Act (1)
 
—

 
1,244

 
Other
 
(33
)
 
(75
)
 
Provision for income taxes
 
$
1,015

 
$
8

 
_________________________________
 
 
 
 
 
(1)
During the year ended June 30, 2018, our Federal income tax statutory rate decreased from 35.00% to 28.06% as a result of the "Tax Act", which became effective for the Company starting in our second quarter of fiscal 2018. The Tax Act required the Company to record an one-time revaluation tax charge to reduce our net deferred tax assets based on the newly enacted corporate tax rate of 21.00%. The 28.06% tax rate was a blended rate based on the Company's fiscal year applied pursuant to IRS guidance.
 
Schedule of deferred tax assets and liabilities
The schedule of deferred taxes presented below summarizes the components of deferred taxes that have been classified as deferred tax assets and deferred tax liabilities related to taxable temporary differences as of June 30, 2019 and June 30, 2018:
in thousands
 
 
 
 
 
 
June 30, 2019
 
June 30, 2018
Accrued compensation
 
$
108

 
$
86

Deferred rent
 
230

 
236

Unrealized loss on open purchase and sale commitments
 
—

 
2,351

Stock-based compensation
 
902

 
635

State tax accrual
 
1

 
37

Net operating loss carry forwards
 
3,077

 
1,657

Fixed assets
 
23

 
—

Other
 
109

 
141

Deferred tax assets
 
4,450

 
5,143

 
 
 
 
 
Intangible assets
 
(324
)
 
(206
)
Unrealized gain on futures and forward contracts
 
—

 
(146
)
Fixed assets
 
—

 
(5
)
Inventories
 
—

 
(319
)
Earnings from equity method investment
 
(569
)
 
(283
)
Investment in LLC. taxed as a partnership
 
(387
)
 
(287
)
Other
 
(7
)
 
(27
)
Deferred tax liabilities
 
(1,287
)
 
(1,273
)
 
 
 
 
 
Net deferred tax asset
 
$
3,163

 
$
3,870