v3.26.1
Income Taxes (Tables)
 12 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Schedule of Provision for Income Taxes

The provision for income taxes includes the following:

 

 

For the years ended June 30,

 

(in thousands)

 

2026

 

 

2025

 

Current

 

$

(312

)

 

$

(130

)

Deferred

 

 

(64

)

 

 

216

 

Income tax (benefit) expense

 

$

(376

)

 

$

86

 
Reconciliation of Expected Federal Income Tax Expense

The following table reconciles the expected corporate federal income tax benefit, computed by multiplying the Company's income (loss) before income taxes by the statutory tax rate of 21%, to the total tax expense, after the adoption of ASU 2-23-09.

 

 

For the year ended June 30,

 

(in thousands)

 

2026

 

US federal statutory income tax benefit

 

$

(7,830

)

 

 

21.0

%

Nontaxable or nondeductible items

 

 

 

 

 

 

       Compensation

 

 

150

 

 

 

-0.4

%

       Other

 

 

13

 

 

 

0.0

%

Cross-border tax effects

 

 

56

 

 

 

-0.1

%

Other reconciling items

 

 

 

 

 

 

       Investment in partnerships

 

 

(107

)

 

 

0.3

%

       Passthrough investment in REV

 

 

1,348

 

 

 

-3.6

%

       Other

 

 

(103

)

 

 

0.3

%

Change in valuation allowance

 

 

6,461

 

 

 

-17.3

%

State taxes net of federal impact

 

 

28

 

 

 

-0.1

%

Changes in uncertain tax benefits

 

 

(392

)

 

 

1.1

%

Income tax benefit

 

$

(376

)

 

 

1.2

%

The following table reconciles the expected corporate federal income tax expense, computed by multiplying the Company's income (loss) before income taxes by the statutory tax rate of 21%, to the total tax expense, prior to the adoption of ASU 2023-09.

 

 

For the year ended June 30,

 

(in thousands)

 

2025

 

Federal tax expense (benefit) at statutory rate

 

$

2,777

 

Change in valuation allowance

 

 

(3,848

)

State taxes net of federal impact

 

 

552

 

Provision to return and other deferred tax

 

 

(145

)

Net operating loss and credit expirations

 

 

713

 

Other

 

 

37

 

Income tax expense

 

$

86

 
Schedule of Tax Effect of Temporary Differences of Deferred Tax Assets and Liabilities The tax effect of temporary differences that give rise to significant portions of the Company's deferred tax assets and liabilities are as follows:

 

 

As of June 30,

 

(in thousands)

 

2026

 

 

2025

 

Deferred Tax Assets:

 

 

 

 

 

 

Net operating loss carryforwards

 

$

3,679

 

 

$

2,099

 

Accruals and allowances not deductible for tax purposes

 

 

19

 

 

 

230

 

Identifiable intangible assets

 

 

312

 

 

 

445

 

Stock based and accrued compensation

 

 

1,054

 

 

 

1,665

 

Unrealized loss on investments

 

 

5,646

 

 

 

-

 

Investment in partnerships

 

 

2,887

 

 

 

3,076

 

Interest expense carryforward

 

 

1,106

 

 

 

873

 

Other

 

 

347

 

 

 

450

 

Total deferred tax assets, gross

 

$

15,050

 

 

$

8,838

 

Less: valuation allowance

 

$

(14,821

)

 

$

(6,278

)

Total deferred tax assets, net

 

$

229

 

 

$

2,560

 

Deferred Tax Liabilities:

 

 

 

 

 

 

Unrealized gain on investment

 

 

-

 

 

 

(2,250

)

Other

 

 

(380

)

 

 

(526

)

Total deferred tax liabilities, gross

 

$

(380

)

 

$

(2,776

)

 

 

 

 

 

 

 

Total deferred tax liabilities, net

 

$

(151

)

 

$

(216

)

 
Schedule of Gross Unrecognized Tax Benefit Activity

During the years ended June 30, 2026 and 2025, the total amount of gross unrecognized tax benefit activity was as follows:

(in thousands)

 

 

 

Balance as of June 30, 2024

 

$

508

 

Lapse of statute of limitations

 

 

(176

)

Balance as of June 30, 2025

 

$

332

 

Lapse of statute of limitations

 

 

(332

)

Balance as of June 30, 2026

 

$

-