v3.25.2
Income Taxes (Tables)
12 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Schedule of Components of Income Tax Expense
The income tax expense for the fiscal years ended June 30, 2025 and 2024 consists of the following (in thousands):
Years ended June 30,
20252024
Income before income taxes:
Domestic$10,397 $2,940 
International1,846 1,410 
$12,243 $4,350 
Current taxes:
Federal$2,925 $1,457 
State708 246 
Foreign491 984 
Total current income tax provision$4,124 $2,687 
Deferred taxes:
Federal$(1,464)$(1,281)
State(341)(151)
Foreign119 158 
Total deferred income tax provision$(1,686)$(1,274)
Net income tax provision$2,438 $1,413 
Schedule of The Effective Income Tax Rate Differs from the U.S. Federal Statutory Income Tax Rate
The effective income tax rate for the fiscal years ended June 30, 2025 and 2024 differs from the U.S. Federal statutory income tax rate due to the following:
Years ended June 30,
20252024
Federal statutory income tax rate21.0 %21.0 %
State income taxes, net of federal benefit3.4 %1.2 %
Foreign tax rate difference(0.4)%8.0 %
Tax return to provision true-up0.4 %(4.3)%
Limit on future stock compensation due to 162(m)4.0 %2.8 %
Foreign withholding tax0.8 %2.6 %
Other differences0.7 %1.6 %
Revalue of deferred for change in federal tax rate0.0 %0.0 %
Permanent differences:
— stock-based compensation(6.2)%(8.3)%
— current year section 162(m) limitation0.9 %7.0 %
— foreign derived intangible income deduction(1.4)%(0.7)%
— tax credits(4.8)%(12.1)%
— meals and entertainment0.6 %1.3 %
— removal of additional permanent reinvestment assertions
0.6 %1.2 %
— change in uncertain tax positions
(0.4)%1.2 %
— accrual for foreign tax audits
0.4 %7.7 %
— other permanent differences0.7 %1.8 %
Change in valuation allowance(0.4)%0.5 %
Net income tax provision 19.9 %32.5 %
Schedule of The Components of the Deferred Tax Assets and Liabilities
The components of the deferred tax assets and liabilities as of June 30, 2025 and 2024 are as follows (in thousands):
June 30,
20252024
Deferred tax assets:
Federal, state, and foreign net operating loss carryovers$234 $271 
Stock option compensation628 360 
Section 174 costs2,798 2,578 
Lease liability2,798 3,223 
Accrued vacation, allowance for returns, bonuses & other2,819 2,119 
Gross deferred tax asset$9,277 $8,551 
Deferred tax liabilities:
Patents and trademarks$(16)$(30)
Property & equipment(239)(798)
Right of use asset(1,942)(2,263)
Other(468)(472)
Gross deferred tax liabilities(2,665)(3,563)
Less: valuation allowance(642)(720)
Deferred tax assets, net$5,970 $4,268 
Summary of Valuation Allowance
The change in the valuation allowance were as follows (in thousands):
Years ended June 30,
20252024
Beginning balance$720 $704 
Increases(78)16 
Ending balance$642 $720