INCOME TAXES (Tables)
|
12 Months Ended |
Jun. 30, 2026 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of the Sources of Income (Loss) Before Income Tax Expense |
For the years ended June 30, the sources of income (loss) before income tax expense were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2026 |
|
|
2025 |
|
|
2024 |
|
Domestic income |
|
$ |
1,275 |
|
|
$ |
13,560 |
|
|
$ |
29,956 |
|
Foreign income (loss) |
|
|
72 |
|
|
|
(25 |
) |
|
|
17 |
|
Total income from continuing operations before income tax expense: |
|
$ |
1,347 |
|
|
$ |
13,535 |
|
|
$ |
29,973 |
|
|
| Schedule of Components of Provision for Income Taxes |
For the years ended June 30, the components of the provision for income taxes for continuing operations are as follows:
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|
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|
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2026 |
|
|
2025 |
|
|
2024 |
|
Current income tax (benefit) expense: |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
(936 |
) |
|
$ |
3,827 |
|
|
$ |
6,870 |
|
State |
|
|
786 |
|
|
|
1,182 |
|
|
|
1,860 |
|
Total current tax (benefit) expense |
|
$ |
(150 |
) |
|
$ |
5,009 |
|
|
$ |
8,730 |
|
Deferred tax expense (benefit): |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
2,491 |
|
|
$ |
(1,923 |
) |
|
$ |
(2,072 |
) |
Foreign |
|
|
10 |
|
|
|
— |
|
|
|
— |
|
State |
|
|
597 |
|
|
|
(266 |
) |
|
|
72 |
|
Total deferred tax expense (benefit) |
|
|
3,098 |
|
|
|
(2,189 |
) |
|
|
(2,000 |
) |
Income tax expense |
|
$ |
2,948 |
|
|
$ |
2,820 |
|
|
$ |
6,730 |
|
|
| Schedule of Difference Between Statutory and Effective Federal Tax Rate |
For the year ended June 30, 2026, a reconciliation of the expected tax provision at the statutory federal income tax rate to the Company’s recorded tax provision consisted of the following, subsequent to the adoption of ASU No. 2023-09 (in thousands, except percentages):
|
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|
|
|
|
|
|
|
|
|
2026 |
|
|
|
Amount |
|
|
Percent |
|
U.S. Federal Statutory Rate |
|
|
279 |
|
|
|
21.00 |
% |
State and local income taxes, net of federal effect |
|
|
|
|
|
|
State income tax expense, net of federal benefit(1) |
|
|
867 |
|
|
|
65.25 |
% |
Foreign taxes, other |
|
|
(5 |
) |
|
|
(0.39 |
%) |
Effect of cross-border tax laws |
|
|
(24 |
) |
|
|
(1.79 |
%) |
Tax credits |
|
|
(539 |
) |
|
|
(40.51 |
%) |
Nontaxable or nondeductible items, net |
|
|
|
|
|
|
Meals and entertainment |
|
|
40 |
|
|
|
3.01 |
% |
Nondeductible executive compensation |
|
|
347 |
|
|
|
26.14 |
% |
Nondeductible transaction costs |
|
|
2,250 |
|
|
|
169.22 |
% |
Excess tax (benefits) on equity awards |
|
|
(238 |
) |
|
|
(17.88 |
%) |
Other |
|
|
7 |
|
|
|
0.51 |
% |
Changes in unrecognized tax benefits |
|
|
(20 |
) |
|
|
(1.53 |
%) |
Other |
|
|
(16 |
) |
|
|
(4.17 |
%) |
Effective income tax rate from continuing operations |
|
|
2,948 |
|
|
|
218.86 |
% |
(1)State and local income taxes in Florida and Utah comprise the majority (greater than 50%) of the state and local income taxes, net of federal effect category. For the years ended June 30, a reconciliation of the expected tax provision at the statutory federal income tax rate to the Company’s recorded provision consisted of the following, prior to the adoption of ASU No. 2023-09:
|
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|
|
|
|
|
|
|
|
|
2025 |
|
|
2024 |
|
Statutory income tax rate |
|
|
21.00 |
% |
|
|
21.00 |
% |
State taxes (net of federal income tax benefit and valuation allowance) |
|
|
2.41 |
% |
|
|
2.17 |
% |
Uncertain tax positions |
|
|
4.34 |
% |
|
|
3.26 |
% |
Tax credits |
|
|
(6.03 |
%) |
|
|
(3.10 |
%) |
Return to provision true-ups and rate changes |
|
|
(0.52 |
%) |
|
|
(1.15 |
%) |
Permanent differences |
|
|
(0.35 |
%) |
|
|
0.49 |
% |
Other |
|
|
(0.02 |
%) |
|
|
(0.22 |
%) |
Effective income tax rate |
|
|
20.83 |
% |
|
|
22.45 |
% |
|
| Schedule of Significant Components of Company's Deferred Tax Assets and Liabilities |
As of June 30, 2026, and 2025, a summary of the significant components of the Company’s deferred tax assets and liabilities was as follows:
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|
|
|
|
|
|
|
|
|
|
2026 |
|
|
2025 |
|
Deferred tax assets: |
|
|
|
|
|
|
Capitalized research costs |
|
$ |
718 |
|
|
$ |
8,499 |
|
Warranty reserves |
|
|
6,964 |
|
|
|
6,031 |
|
Accrued selling |
|
|
1,976 |
|
|
|
2,210 |
|
Intangible asset basis difference |
|
|
— |
|
|
|
1,923 |
|
Unrecognized tax benefits |
|
|
3,551 |
|
|
|
1,637 |
|
Accrued compensation |
|
|
1,039 |
|
|
|
912 |
|
Net operating loss |
|
|
7,217 |
|
|
|
1,003 |
|
Stock compensation |
|
|
2,660 |
|
|
|
713 |
|
Other |
|
|
3,392 |
|
|
|
1,972 |
|
Total deferred tax assets |
|
|
27,517 |
|
|
|
24,900 |
|
Valuation allowance |
|
|
— |
|
|
|
— |
|
Total deferred tax assets, net of the valuation allowance |
|
|
27,517 |
|
|
|
24,900 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
Depreciation |
|
|
(16,816 |
) |
|
|
(4,983 |
) |
Intangible asset basis difference |
|
|
(10,912 |
) |
|
|
— |
|
Other |
|
|
(1,167 |
) |
|
|
(1,003 |
) |
Total deferred tax liabilities |
|
|
(28,895 |
) |
|
|
(5,986 |
) |
Net deferred tax assets (liabilities) |
|
$ |
(1,378 |
) |
|
$ |
18,914 |
|
As of June 30, 2026, the Company has gross federal net operating loss (NOL) carryforwards of $29.6 million, which can be carried forward indefinitely.
|
| Schedule of Reconciliation of Unrecognized Tax Benefits Excluding Accrued Amounts for Interest and Penalties |
A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding accrued amounts for interest and penalties, is as follows:
|
|
|
|
|
|
|
|
|
|
|
2026 |
|
|
2025 |
|
Balance at July 1 |
|
$ |
6,853 |
|
|
$ |
6,861 |
|
Additions based on tax positions related to the current year |
|
|
321 |
|
|
|
348 |
|
Additions for tax positions of prior years |
|
|
6,882 |
|
|
|
— |
|
Reductions for tax positions of prior years |
|
|
(679 |
) |
|
|
(356 |
) |
Balance at June 30 |
|
$ |
13,377 |
|
|
$ |
6,853 |
|
|
| Schedule of The Amounts Cash Taxes Paid Net of Refunds |
The amounts of cash taxes paid, net of refunds, for the year ended June 30, 2026, included the following, subsequent to the adoption of ASU 2023-09:
|
|
|
|
|
Federal |
|
$ |
1,660 |
|
State and local |
|
|
398 |
|
Net income taxes paid |
|
$ |
2,058 |
|
|