v3.26.3
INCOME TAXES (Tables)
 12 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
SUMMARY OF (LOSS) INCOME BEFORE INCOME TAXES

The following table summarizes the loss from continuing operations before income taxes (in thousands):

 

   2026   2025 
   Year Ended June 30, 
   2026   2025 
United States  $(773)  $(6,512)
Foreign   (4,032)   (1,044)
Loss from continuing operations before income taxes  $(4,805)  $(7,556)
SCHEDULE OF BENEFIT FROM (PROVISION FOR) INCOME TAXES

The composition of the benefit from income taxes consisted of the following (in thousands):

 

   2026   2025 
   Year Ended June 30, 
   2026   2025 
United States  $291   $1,302 
Foreign   (14)   260 
Total benefit from income taxes  $277   $1,562 

 

 

   2026   2025 
   Year Ended June 30, 
   2026   2025 
         
Current:          
Federal  $17   $(39)
States   (22)   (16)
Foreign   (16)   7 
Total current   (21)   (48)
Deferred:          
Federal   330    1,356 
States   (34)   1 
Foreign   2    253 
Total deferred   298    1,610 
Total benefit from income taxes  $277   $1,562 
SCHEDULE OF DEFERRED TAX ASSETS

Tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets for the years ended June 30, 2026 and 2025 are presented below (in thousands):

 

   2026   2025 
   June 30, 
   2026   2025 
         
Deferred tax assets:          
Intangible assets - U.S.  $740   $685 
Net operating loss   2,662    2,222 
Capital loss carryover   144    45 
Accruals, reserves and other - U.S. and foreign   485    488 
Gross deferred tax assets  4,031   3,440 
Less: valuation allowance     (432 )     -  
Total deferred tax assets   $ 3,599     $ 3,440  
           
Deferred tax liabilities:          
Intangible assets - foreign  $-   $(195)
Accruals, reserves and other - foreign   -    (26)
Total deferred tax liabilities - foreign  $-   $(221)
Total net deferred tax assets  $3,599   $3,219 
SCHEDULE OF INCOME TAX BENEFIT EXPENSE

 

     

Percentage

 
   Year Ended June 30, 2026 
  

Amount

  

Percentage

 
U.S. federal statutory tax rate  $976    21.0%
State and local income taxes (net of federal benefit)   (51)   (1.1)%

Foreign tax effects:

   

   
United Kingdom          
Statutory tax rate differential between U.K. and U.S.   88    1.9%
Goodwill impairment   (424)   (9.1)%
Change in valuation allowance   (432)   (9.3)%

Canada

          
Gain from sale of business   (82)   (1.8)%

Other

   (16)   (0.3)%
Nontaxable or nondeductible items:          
Gain from sale of business   

201

    

4.3

%
Other   

17

    

0.4

%
Total tax benefit  $277    6.0%

 

The benefit from income taxes for the year ended June 30, 2025, prior to the adoption of ASU 2023-09, differed from the amounts computed by applying the statutory federal income tax rate of 21.0% to pretax loss as a result of the following (in thousands):

 

      Percentage 
   Year Ended June 30, 2025 
  

Amount

   Percentage 
         
Federal tax benefit at statutory tax rate  $1,550    21.0%
State income taxes   (12)   (0.2)%
Permanent differences   (14)   (0.1)%
Foreign rate differential   38    0.5%
Total tax benefit  $1,562    21.2%