Quarterly report pursuant to Section 13 or 15(d)

Income Taxes

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Income Taxes
 9 Months Ended
Mar. 31, 2022
Income Tax Disclosure [Abstract]  
Income Taxes

Note 15. Income Taxes 

 

On October 15, 2021, the Company acquired a majority ownership position in RFMi, a fabless supplier of acoustic wave RF resonators and filters. The Company acquired a 51% ownership interest in RFMi from Tai-Saw Technology Co., Ltd. (“TST”) in exchange for $6.0 million in cash and approximately $2.5 million payable of common stock of the Company. The Company’s preliminary allocation of purchase price for this acquisition is included in Note 7 – Business Acquisition, and includes an approximately $2.0 million deferred tax liability related to the acquired identifiable intangible assets. AKTS and RFMi will not file a consolidated tax return. Therefore, the valuation allowance remains in place on the net AKTS deferred tax assets.

 

The Company’s income tax expense (benefit) was ($128) thousand and ($70) thousand for the three and nine months ended March 31, 2022 respectively and ($0) for the three and nine months ended March 31, 2021. The Company’s effective tax rate was 0.9% and 0.2% for the three and nine months ended March 31, 2022 and 0.0% for the three and nine months ended March 31, 2021.

 

The Company’s effective tax rate for the three and nine months ended March 31, 2022 and March 31, 2021, differed from the statutory rate primarily due to state taxes and the recording of a valuation allowance against certain separate company deferred tax assets.