EVI INDUSTRIES, INC. Income Taxes Disclosure
| 10. Income Taxes | The following are the components of income taxes provision (benefit) (in thousands): |
| Fiscal years ended June 30, | 2025 | 2024 | ||||||
| Current | ||||||||
| Federal | $ | 3,200 | $ | 2,195 | ||||
| State | 1,148 | 568 | ||||||
| 4,348 | 2,763 | |||||||
| Deferred | ||||||||
| Federal | (638 | ) | 516 | |||||
| State | (183 | ) | (41 | ) | ||||
| (821 | ) | 475 | ||||||
| $ | 3,527 | $ | 3,238 | |||||
| The reconciliation of income tax expense computed at the federal statutory tax rate of 21% for the fiscal years ended June 30, 2025 and 2024 to the provision for income taxes is as follows (in thousands): |
| Fiscal years ended June 30, | 2025 | 2024 | ||||||
| Tax at the statutory rate | $ | 2,313 | $ | 1,866 | ||||
| State income taxes, net of federal benefit | 745 | 422 | ||||||
| Nondeductible compensation | 518 | 885 | ||||||
| Other | (49 | ) | 65 | |||||
| $ | 3,527 | $ | 3,238 | |||||
| Effective tax rate | 32.0 | % | 36.4 | % | ||||
| Deferred income taxes reflect the net tax effect of temporary differences between the basis of assets and liabilities for financial reporting purposes and the basis used for income tax purposes. Significant components of the Company’s current and noncurrent deferred tax assets and liabilities as of June 30, 2025 and 2024 were as follows (in thousands): |
| As of June 30, | 2025 | 2024 | ||||||
| Deferred tax assets: | ||||||||
| Allowance for credit losses | $ | 472 | $ | 281 | ||||
| Other reserves | 1,048 | |||||||
| Inventory capitalization | 1,303 | 966 | ||||||
| Stock compensation | 1,325 | 1,039 | ||||||
| Accrued liabilities | 1,958 | 1,581 | ||||||
| Other | 443 | 163 | ||||||
| 6,549 | 4,030 | |||||||
| Deferred tax liabilities: | ||||||||
| Goodwill | (6,984 | ) | (5,755 | ) | ||||
| Inventory method changes | (1,366 | ) | ||||||
| Depreciation | (2,701 | ) | (2,228 | ) | ||||
| Intangible assets | (3,189 | ) | (1,348 | ) | ||||
| Other | (197 | ) | ||||||
| (14,240 | ) | (9,528 | ) | |||||
| Net deferred income tax (liabilities) assets | $ | (7,691 | ) | $ | (5,498 | ) | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Sep 11, 2025 | Showing above |
| 2024 | Sep 12, 2024 | |
| 2023 | Oct 5, 2023 | |
| 2022 | Sep 13, 2022 | |
| 2021 | Sep 13, 2021 | |
| 2020 | Sep 14, 2020 | |
| 2019 | Sep 13, 2019 | |
| 2018 | Sep 13, 2018 | |
| 2017 | Sep 28, 2017 | |
| 2016 | Sep 20, 2016 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.