INCOME TAXES (Tables)
|
12 Months Ended |
Jun. 30, 2026 |
| INCOME TAXES |
|
| Schedule of Income Before Income Taxes |
Income before income tax (provision) benefit consisted of the following (in thousands): | | | | | | | | | Fiscal Year Ended June 30, | | | 2026 | | 2025 | United States | | $ | 7,579 | | $ | 3,636 | Foreign | | | 3,217 | | | 2,001 | Income before income tax (provision) benefit | | $ | 10,796 | | $ | 5,637 |
|
| Schedule of Components of Income Tax (Benefit) Provision |
The components of the income tax (provision) benefit are as follows (in thousands): | | | | | | | | | Fiscal Year Ended June 30, | | | 2026 | | 2025 | Current provision: | | | | | | | Federal | | $ | (194) | | $ | (14) | State | | | (635) | | | (101) | Foreign | | | (761) | | | (521) | Total current: | | | (1,590) | | | (636) | Deferred: | | | | | | | Federal | | | (560) | | | 24,280 | State | | | 466 | | | 3,094 | Foreign | | | (236) | | | (121) | Total deferred: | | | (330) | | | 27,253 | Income tax (provision) benefit | | $ | (1,920) | | $ | 26,617 |
|
| Reconciliation of Federal Statutory Tax Rate to Effective Tax Rate |
The reconciliation of the U.S. federal statutory income tax rate and amount to the Company’s effective income tax rate and income tax (provision) benefit is as follows (in thousands): | | | | | | | | | Fiscal Year Ended June 30, 2026 | | | Amount | | Percent | Income taxes provision at statutory federal rate | | $ | (2,267) | | | (21.00)% | State and local taxes, net of federal income tax effect (1) | | | (169) | | | (1.57)% | Foreign tax effects | | | | | | | India | | | | | | | Statutory tax rate difference between India and the United States | | | (168) | | | (1.55)% | Other | | | 63 | | | 0.58% | United Kingdom | | | | | | | Stock-based compensation | | | (241) | | | (2.23)% | Other | | | 31 | | | 0.29% | Other Foreign | | | (6) | | | (0.05)% | Tax credits | | | | | | |
R&D credit, net of reserve | | | 1,037 | | | 9.61% | Nontaxable or nondeductible items | | | | | | | Other | | | 9 | | | 0.08% | Stock-based compensation | | | (160) | | | (1.48)% | Changes in unrecognized tax benefits | | | (98) | | | (0.90)% | Other Adjustments | | | 49 | | | 0.45% | Income tax provision | | $ | (1,920) | | | (17.77)% |
| (1) | State taxes in Illinois, Missouri, New Hampshire, and New York made up the majority (greater than 50 percent) of the tax effect in this category. |
For the year ended June 30, 2025, prior to the adoption of ASU 2023-09, the effective income tax rate differs from the statutory federal income tax rate as follows (in thousands): | | | | | | | | | | | | Fiscal Year Ended June 30, 2025 | Federal statutory income tax rate | | | $ | (1,184) | Current state taxes, net of federal benefit | | | | (713) | Foreign rate differential | | | | (222) | Research and development credits | | | | (127) | Stock-based compensation | | | | (981) | Deferred return to provision | | | | 51 | Other items | | | | (41) | Net change in valuation allowance | | | | 30,079 | Foreign income | | | | (245) | Income tax (provision) benefit | | | $ | 26,617 |
|
| Schedule of Cash Income Taxes Paid by the Company (Net of Refunds Received) |
The amounts of cash income taxes paid by the Company (net of refunds received) are as follows (in thousands): | | | | | | | | Fiscal Year Ended June 30, 2026 | Federal | | | $ | — | State: | | | | | Colorado | | | | (80) | Florida | | | | 47 | New Hampshire | | | | 61 | Other | | | | 135 | State subtotal | | | | 163 | Foreign: | | | | | India | | | | 425 | UK | | | | 179 | Foreign total | | | | 604 | Total cash paid for income taxes (net of refunds) | | | $ | 767 |
|
| Schedule of Components of Deferred Tax Assets and Liabilities |
Significant components of our deferred tax assets and liabilities for federal, state and foreign income taxes are as follows (in thousands): | | | | | | | | | As of June 30, | | | 2026 | | 2025 | Deferred tax assets: | | | | | | | Net operating loss carryforwards | | $ | 4,312 | | $ | 850 | Research credits | | | 11,130 | | | 10,064 | Other credits | | | — | | | 3 | Deferred revenue | | | 3,526 | | | 770 | Stock-based compensation | | | 4,048 | | | 4,054 | Accruals and reserves | | | 882 | | | 1,178 | Lease liability | | | 176 | | | 286 | Intangibles | | | — | | | 3 | Other | | | 107 | | | 85 | Section 267 payables | | | 2,004 | | | 2,335 | Capitalized research and development | | | 8,155 | | | 14,453 | Gross deferred tax assets | | | 34,340 | | | 34,081 | Less valuation allowance | | | (6,219) | | | (5,529) | Net deferred tax assets | | | 28,121 | | | 28,552 | Gross deferred tax liabilities | | | | | | | Right-of-use asset | | | (171) | | | (298) | Fixed assets | | | (54) | | | (28) | Gross deferred tax liabilities | | | (225) | | | (326) | Total deferred tax assets, net * | | $ | 27,896 | | $ | 28,226 | | | | | | | | *included in other assets, net, on consolidated balance sheets | | | | | | |
|
| Schedule of Aggregate Changes in the Balance of the Valuation Allowance |
The aggregate changes in the balance of the valuation allowance during fiscal years 2026 and 2025 were as follows (in thousands): | | | | | | | | | Fiscal Year Ended June 30, | | | 2026 | | 2025 | Valuation Allowance Beginning Balance | | $ | (5,529) | | $ | (35,608) | Change in Valuation Allowance | | | (690) | | | 30,079 | Valuation Allowance Ending Balance | | $ | (6,219) | | $ | (5,529) |
|
| Schedule of Aggregate Changes in the Balance of Gross Unrecognized Tax Benefits |
The aggregate changes in the balance of our gross unrecognized tax benefits during fiscal years 2026 and 2025 were as follows (in thousands): | | | | | | | | | Fiscal Year Ended June 30, | | | 2026 | | 2025 | Beginning balance | | $ | 4,627 | | $ | 1,641 | Increases in balances related to tax positions taken during current periods | | | 658 | | | 2,986 | Expired Attributes | | | (2) | | | — | Ending balance | | $ | 5,283 | | $ | 4,627 |
|