The following table summarizes income before income taxes:

		Years Ended June 30,
		2017				2016 As Adjusted
U.S.		$	6,227,200			$	8,505,004
Foreign			548,534				339,005
Income before income taxes		$	6,775,734			$	8,855,867

 

 

Provision for income tax as listed on the Consolidated Statements of Operations for the years ended and are $

 

Provision for taxes consisted of the following:

		Years Ended June 30,
		2017				2016
US operations		$	1,419,051			$	3,485,411
Foreign operations			170,352				95,221
Total		$	1,589,403			$	3,580,632

 

 

Deferred income tax assets and liabilities arise from temporary differences associated with differences between the financial statements and tax basis of assets and liabilities, as measured by the enacted tax rates which are expected to be in effect when these differences reverse. The Company has adopted ASU - and classifies all deferred tax assets and liabilities as long-term.

 

The gross deferred tax asset balance as of is approximately $

 

Provisions for income tax consisted of the following as of the years ended:

 

For the year ended:			June 30, 2017				June 30, 2016
Current:
Federal			$	1,573,044			$	2,929,891
States				138,728				324,111
Foreign				191,948				71,407
Total current				1,903,720				3,325,409
Deferred:
Federal				(173,657	)			70,143
States				(119,064	)			162,220
Foreign				(21,596	)			22,860
Total deferred				(314,317	)			255,223
Total			$	1,589,403			$	3,580,632

 

The Company records a liability for uncertain tax positions when it is probable that a loss has been incurred and the amount can be reasonably estimated. The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. T

 

For the year ended:		June 30, 2017				June 30, 2016
Deferred tax assets:
Property and equipment and intangible assets - U.S.		$	1,291,927			$	1,132,920
Net operating loss			111,698				1,204,967
Capital loss carryover			-				6,970
Accruals, reserves and other - foreign			31,840				23,724
Accruals, reserves and other - U.S.			73,884				43,403
Gross deferred tax assets			1,509,349				2,411,984
Less valuation allowance			(29,077	)			(1,232,512	)
Total deferred tax assets		$	1,480,272			$	1,179,472
Deferred tax liabilities:
Intangible assets - foreign		$	(258,601	)		$	(272,095	)
Total deferred tax liabilities		$	(258,601	)		$	(272,095	)

 

 

For the year ended:		June 30, 2017				June 30, 2016
Federal tax expense (benefit) at statutory rate		$	2,321,442			$	3,006,961
State income taxes			(27,503	)			440,396
Permanent differences			399,639				98,271
Change in valuation allowance			(1,128,464	)			55,999
Foreign rate differential			24,289				(20,995	)
Total tax expense/(benefit)		$	1,589,403			$	3,580,632

 

For the year ended:		June 30, 2017				June 30, 2016
		%				%
Federal tax expense (benefit) at statutory rate			34.00	%			34.00	%
State income taxes			(0.40	%	)		4.98	%
Permanent differences			5.85	%			1.11	%
Foreign rate differential			(0.36	%	)		(0.24	%)
Change in valuation allowance			(16.53	%	)		0.63	%
Total tax expense/(benefit)			23.28	%			40.48	%

 

Reconciliation of unrecognized tax benefits per ASC ---

 

Balance at June 30, 2016		$	-
Additions based on tax positions taken during a prior period			-
Reductions based on tax positions taken during a prior period			-
Additions based on tax positions taken during the current period			206,046
Reductions based on tax positions taken during the current period			-
Reductions related to settlement of tax matters			-
Reductions related to a lapse of applicable statute of limitations			-
Balance at June 30, 2017		$	206,046