Annual report pursuant to Section 13 and 15(d)

INCOME TAXES (Tables)

v3.20.2
INCOME TAXES (Tables)
 12 Months Ended
Jun. 30, 2020
INCOME TAXES  
Schedule of effective income tax rate reconciliation

For the fiscal years ended June 30, 2020 and 2019, the reconciliation between the income tax benefit computed by applying the statutory U.S. federal income tax rate to the pre-tax loss before income taxes, and total income tax expense recognized in the financial statements is as follows (in thousands):

 

 

 

 

 

 

 

 

    

2020

    

2019

Income tax benefit at statutory U.S. federal rate

 

$

4,270

 

$

6,394

Income tax benefit attributable to U.S. states

 

 

1,420

 

 

1,876

Non-deductible expenses

 

 

(12)

 

 

(1,045)

Stock option expirations

 

 

(52)

 

 

(1,484)

Other

 

 

392

 

 

(328)

Change in valuation allowance

 

 

(6,018)

 

 

(5,413)

 

 

 

 

 

 

 

Total income tax expense

 

$

 —

 

$

 —

 

Schedule of deferred tax assets and liabilities

As of June 30, 2020 and 2019, the income tax effects of temporary differences that give rise to significant deferred income tax assets and liabilities are as follows (in thousands):

 

 

 

 

 

 

 

 

    

2020

    

2019

 

 

 

 

 

 

 

Deferred income tax assets:

 

 

  

 

 

  

Net operating loss carryforwards

 

$

21,651

(1)

$

20,016

Intangible assets

 

 

5,182

(1)

 

 —

Stock-based compensation

 

 

4,592

 

 

3,716

Start-up and organizational expenses

 

 

203

 

 

338

Accrued expenses and other

 

 

47

 

 

1,598

 

 

 

 

 

 

 

Total deferred income tax assets

 

 

31,675

 

 

25,668

Valuation allowance for deferred income tax assets

 

 

(31,674)

 

 

(25,656)

Net deferred income tax assets

 

 

 1

 

 

12

Deferred income tax liability- property, equipment and other

 

 

(1)

 

 

(12)

 

 

 

 

 

 

 

Net deferred income tax assets

 

$

 —

 

$

 —

(1)

Amounts include the impact of giving effect to the reclassification of approximately $4.1 million from net operating loss carryforwards to intangible assets due to license fees that were incorrectly expensed for income tax purposes in previous fiscal years. During the fiscal year ended June 30, 2020, the Company’s income tax returns were corrected whereby these license costs were capitalized and are being amortized over 15 years for income tax purposes. Due to the valuation allowance for deferred income tax assets in previous years, this reclassification did not have any impact on the Company’s previously reported net losses or accumulated deficit.