INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2022

INCOME TAXES

Summary of deferred tax assets and liabilities

The following table summarizes deferred tax assets and liabilities as of the date of the Exchange Agreement and through June 30, 2022:


		Deferred						Existing valuation allowance
		Tax Assets			Deferred Tax Liabilities			Prior to business combination			Net Position
Deferred tax assets		$	910		$	—		$	—		$	910
Deferred tax liabilities			—			(18)			—			(18)
Valuation allowance			—			—			(892)			(892)
Total MiT Inc. June 30, 2022		$	910		$	(18)		$	(892)		$	—

MiT Inc.		$	—		$	—		$	—		$	—
MiT LLC			248			(13)			(235)			—
Total July 7, 2021 (see note 1)		$	248		$	(13)		$	(235)		$	—

The following table summarizes the components of deferred tax assets and deferred tax liabilities:


		Deferred Tax
		Assets (Liabilities)
Inventory reserve		$	122
Accumulated depreciation			(6)
Accumulated goodwill amortization			(12)
Accumulated intangible amortization			8
Unrealized loss on investments			68
Deferred rent			6
Warranty reserve			5
Stock compensation			68
Net operating loss carryforward			594
Allowance for doubtful accounts			39
Net			892
Valuation allowance			(892)
Total June 30, 2022		$	—

Inventory reserve		$	133
Accumulated depreciation			(7)
Accumulated goodwill amortization			(6)
Deferred rent			7
Warranty reserve			8
Allowance for doubtful accounts			100
Net			235
Valuation allowance			(235)
Total July 7, 2021 (see note 1)		$	—

Summary of reconciliation of income taxes


		2022			2021
Net loss before tax		$	(1,345)		$	(645)
United States corporate tax rate			21	%		21	%
Tax Benefit at statutory rate			282			135
Differences due to:
State taxes			119			58
PPP Loan Forgiveness			210			—
Other, permanent differences			46			42
Change in valuation allowance			(657)			(235)
Income Tax (Benefit) Expense		$	—		$	—
Effective Tax Rate			(0)	%		(0)	%