Income Taxes (Tables)
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12 Months Ended |
Jun. 30, 2026 |
| Income Taxes |
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| Schedule of income before income taxes attributable to domestic and foreign operations |
The amounts of income before income taxes attributable to domestic and foreign operations were as follows (in thousands): | | | | | | | | | | | | For the Year ended June 30, | | | 2026 | | 2025 | | 2024 | | | | | | | | | | | Domestic | | $ | 13,331 | | $ | 12,038 | | $ | 6,936 | Foreign | | | 36,491 | | | 38,031 | | | 49,450 | | | | | | | | | | | Total | | $ | 49,822 | | $ | 50,069 | | $ | 56,386 |
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| Schedule of provision for income taxes |
The provision for income taxes is comprised of the following (in thousands): | | | | | | | | | | | | For the Year ended June 30, | | | 2026 | | 2025 | | 2024 | Current income taxes: | | | | | | | | | | Federal | | $ | 3,254 | | $ | 6,817 | | $ | 8,329 | State | | | 1,170 | | | 894 | | | 1,015 | | | | 4,424 | | | 7,711 | | | 9,344 | Deferred income taxes: | | | | | | | | | | Federal | | | 2,664 | | | (1,046) | | | (2,367) | State | | | (293) | | | (2) | | | (409) | | | | 2,371 | | | (1,048) | | | (2,776) | | | | | | | | | | | Provision for income taxes | | $ | 6,795 | | $ | 6,663 | | $ | 6,568 |
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| Schedule of effective income tax rate reconciliation |
The items accounting for the difference between income taxes computed at the U.S. federal statutory rate and our effective rate for the year ended June 30, 2026, pursuant to the requirements of ASU 2023-09, were as follows: (in thousands, except for percentages): | | | | | | | | | 2026 | | | | | | % of Pre-tax | | | | Amount | | Income | | U.S. federal statutory income tax rate | | $ | 10,463 | | 21.0 | % | State and local income taxes, net(1) | | | 633 | | 1.3 | % | | | | | | | | Increases (decreases) in taxes resulting from: | | | | | | | Foreign tax effects | | | | | | | Dominican Republic (DR) | | | | | | | Statutory tax rate difference between DR and U.S. | | | (7,663) | | (15.4) | % | Withholding tax | | | 463 | | 0.9 | % | | | | | | | | Effects of cross-board tax laws | | | | | | | Global intangible low-taxed income | | | 3,762 | | 7.6 | | | | | | | | | Nontaxable or Nondeductible items | | | | | | | Share-based payment awards | | | (37) | | (0.1) | % | Executive compensation | | | 157 | | 0.3 | % | Other, net | | | 73 | | 0.2 | % | | | | | | | | Tax credits | | | (735) | | (1.5) | | Change in uncertain tax positions | | | (27) | | (0.1) | % | Other adjustments | | | (294) | | (0.6) | % | Effective tax rate | | $ | 6,795 | | 13.6 | % | | | | | | | | (1) State taxes in California, Massachusetts, New Jersey and New York make up greater than 50% of the tax effect in this category. |
As previously disclosed for the years ended June 30, 2025 and 2024, prior to the adoption of ASU 2023-09, the items accounting for the difference between income taxes computed at the U.S. federal statutory rate and our effective rate were as follows (in thousands, except for percentages): | | | | | | | | | | | | | | | 2025 | | | 2024 | | | | | | | % of | | | | | | % of | | | | | | | Pre-tax | | | | | | Pre-tax | | | | Amount | | Income | | | Amount | | Income | | Tax at Federal statutory rate | | $ | 10,515 | | 21.0 | % | | $ | 11,841 | | 21.0 | % | | | | | | | | | | | | | | Increases (decreases) in taxes resulting from: | | | | | | | | | | | | | Meals and entertainment | | | 68 | | 0.1 | % | | | 66 | | 0.1 | % | State income taxes, net of Federal income tax benefit | | | 704 | | 1.4 | % | | | 935 | | 1.7 | % | Global intangible low-taxed income | | | 3,981 | | 8.0 | % | | | 5,259 | | 9.3 | % | R&D Credit | | | (461) | | (0.9) | % | | | (632) | | (1.1) | % | Executive Compensation | | | 183 | | 0.4 | % | | | 47 | | 0 | % | Foreign Source income not subject to Tax | | | (7,986) | | (16.0) | % | | | (10,518) | | (18.7) | % | Uncertain Tax Positions | | | (825) | | (1.6) | % | | | 78 | | 0.1 | % | Other, net | | | 484 | | 0.8 | % | | | (508) | | (0.9) | % | Effective tax rate | | $ | 6,663 | | 13.3 | % | | $ | 6,568 | | 11.6 | % |
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| Schedule of deferred tax assets and liabilities |
Deferred tax assets and deferred tax liabilities at June 30, 2026 and 2025 are as follows (in thousands): | | | | | | | | | Deferred Tax Assets (Liabilities) | | | 2026 | | 2025 | Accounts receivable | | $ | 25 | | $ | 6 | Inventories | | | 598 | | | 633 | Accrued liabilities | | | 675 | | | 675 | Stock based compensation expense | | | 358 | | | 474 | Revenue reserves | | | 282 | | | 520 | Unrealized loss on marketable securities | | | 69 | | | 69 | Capitalized research and development cost | | | 948 | | | 6,181 | Litigation settlement | | | 3,888 | | | — | Total Deferred Tax Assets | | $ | 6,843 | | $ | 8,558 | Valuation allowance | | | — | | | — | Deferred income tax assets, net of valuation allowance | | $ | 6,843 | | $ | 8,558 | | | | | | | | Intangibles | | | (726) | | | (802) | Property, plant and equipment | | | (934) | | | (667) | Other deferred tax liabilities | | | (1,078) | | | (613) | Total Deferred Tax Liability | | $ | (2,738) | | $ | (2,082) | | | | | | | | Net Deferred Tax Asset | | $ | 4,105 | | $ | 6,476 |
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| Schedule of income taxes paid, net of refunds |
| | | | | | June 30, 2026 | | | | | Federal | | $ | 2,693 | State | | | | New York | | | 294 | Other States | | | 518 | | | | | Total cash paid for income taxes, net of refunds received | | $ | 3,505 |
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| Schedule of recognized tax benefits roll forward |
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): | | | | | | | | | | | | 2026 | | 2025 | | 2024 | Balance of gross unrecognized tax benefits as of Beginning of Year | | $ | 22 | | $ | 700 | | $ | 700 | Increase to unrecognized tax benefits resulting from a state filing tax position | | | — | | | — | | | — | Decrease to unrecognized tax benefits resulting from an expiration of a statute | | | (22) | | | (678) | | | — | Balance of gross unrecognized tax benefits as of End of Year | | $ | — | | $ | 22 | | $ | 700 |
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