v3.25.2
Income Taxes
 12 Months Ended
Jun. 30, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Sources of Pretax Income (Loss)Fiscal Years Ended
 June 30,
2025		June 30,
2024		June 30,
2023
 (In thousands)
Domestic$(26,917)$(27,119)$(52,636)
Foreign(2,081)2,107 (125)
Total$(28,998)$(25,012)$(52,761)
Components of the Provision for Income Tax Expense (Benefit)Fiscal Years Ended
 June 30,
2025		June 30,
2024		June 30,
2023
 (In thousands)
Current:
Federal$91 $(80)$(369)
State354 44 (31)
Foreign19 — — 
Current Total464 (36)(400)
Deferred Total— — — 
Total$464 $(36)$(400)
Reconciliation Between the Expected Income Tax Provision Applying the Domestic Federal Statutory Tax Rate and the Reported Income Tax ProvisionFiscal Years Ended
June 30,
2025		June 30,
2024		June 30,
2023
 (In thousands)
Expected benefit for federal income taxes at the statutory rate$(6,089)$(5,253)$(11,080)
State income taxes, net of federal benefit(716)(2,065)(2,320)
Charges without tax benefit, net of non-taxable income1,042 384 358 
Change in valuation allowance(1)
6,472 8,542 12,595 
Excess tax expense (benefit) on stock-based compensation1,063 (61)1,216 
Research and development and other tax credits(952)(1,299)(1,175)
Foreign tax differential88 388 50 
Change in uncertain tax positions— (81)(90)
Other(444)(591)46 
Provision (benefit) for federal, state and foreign income taxes$464 $(36)$(400)


(1)Due to the existence of a cumulative loss over a three-year period, we recorded a full valuation allowance against our deferred tax assets in fiscal 2022 and recorded additional valuation allowances against newly generated deferred tax assets in fiscal 2023, 2024, and 2025. These assets are primarily comprised of federal net operating losses, which have an indefinite carryforward, federal tax credits and state net operating losses. To the extent we generate taxable income in the future, or cumulative losses are no longer present and our future projections for growth or tax planning strategies are demonstrated, we will realize the benefit associated with the net operating losses for which the valuation allowance has been provided.
Significant Components of our Deferred Tax Assets and Liabilities

June 30,
2025		June 30,
2024
 (In thousands)
Deferred tax assets:
Accruals and reserves$2,267 $283 
Bad debt reserve65 52 
Insurance reserve971 941 
Net operating loss benefit and credit carryforwards32,043 29,626 
Accrued compensation and pension1,487 1,273 
Stock compensation expense on nonvested restricted stock units3,353 3,438 
Book over tax amortization4,033 5,607 
Research and development capitalization14,882 12,425 
Foreign currency translation and other1,271 1,324 
Total deferred tax assets60,372 54,969 
Valuation allowance(55,973)(49,434)
Deferred tax assets, net4,399 5,535 
Deferred tax liabilities:
Tax over book depreciation3,920 5,081 
Other504 479 
Total deferred tax liabilities4,424 5,560 
Net deferred tax liability$(25)$(25)
Valuation Allowance
We recorded a valuation allowance on our deferred tax assets due to the existence of a cumulative loss over a three-year period. We will continue to place valuation allowances on newly generated deferred tax assets. We will realize the benefit associated with the deferred tax assets for which the valuation allowance has been provided as we generate taxable income.
Operating Loss and Tax Credit Carryforwards
We have net operating loss carryforwards and tax credit carryforwards in federal, state and foreign jurisdictions. The valuation allowance at June 30, 2025 and June 30, 2024 reduces the recognized tax benefit of these carryforwards to an amount that is more likely than not to be realized. The gross carryforwards will generally expire as shown below for each jurisdiction:
Operating Loss and Tax Credit CarryforwardsExpiration PeriodAmount (in thousands)
Federal net operating lossIndefinite$41,388 
Federal tax creditsJune 2041 to June 2045$6,056 
Federal foreign tax creditsJune 2035$16 
State net operating lossesJune 2026 to indefinite$120,732 
State tax creditsJune 2033 to indefinite$641 
Foreign net operating lossesJune 2029 to June 2045$34,117 
Foreign tax creditsJune 2035 to June 2045$701 

Other
In general, it is our practice and intention to reinvest the earnings of our foreign subsidiaries in our foreign operations. We do not provide for outside basis differences under the indefinite reinvestment assertion of ASC 740-30.
We file tax returns in multiple domestic and foreign taxing jurisdictions. With a few exceptions, we are no longer subject to examination by taxing authorities through fiscal 2020. At June 30, 2025, we updated our evaluation of our open tax years in all known jurisdictions. As of June 30, 2025, we have a $0.1 million liability for unrecognized tax positions and the payment of related interest and penalties. We treat the related interest and penalties as income tax expense. Due to the uncertainties related to these tax matters, we are unable to make a reasonably reliable estimate as to when cash settlement with a taxing authority will occur.
On July 4, 2025, a budget and reconciliation package commonly known as the One Big Beautiful Bill Act (“OBBBA”) was signed into law. Under United States GAAP, changes in tax law are accounted for in the period of enactment, our fiscal 2026. OBBBA is not expected to have a material impact on our fiscal 2026 financial statements due to our valuation allowance. We expect to benefit primarily from changes which include the immediate expensing of United States research and development expenditures and 100 percent bonus depreciation for certain capital expenditures.
One Big Beautiful Bill Act
On July 4, 2025, a budget and reconciliation package commonly known as the One Big Beautiful Bill Act (“OBBBA”) was signed into law. Under United States GAAP, changes in tax law are accounted for in the period of enactment, our fiscal 2026. OBBBA is not expected to have a material impact on our fiscal 2026 financial statements due to our valuation allowance. We expect to benefit primarily from changes which include the immediate expensing of United States research and development expenditures and 100 percent bonus depreciation for certain capital expenditures.