Charles & Colvard (CTHR) 10-Q 2 Nov 18 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2018	Oct. 26, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	CHARLES & COLVARD LTD
Entity Central Index Key	1,015,155
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		21,598,069
Document Fiscal Year Focus	2,019
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($)	Sep. 30, 2018	Jun. 30, 2018
Current assets:
Cash and cash equivalents	$ 2,086,565	$ 3,393,186
Restricted cash	133,217	0
Accounts receivable, net	2,086,046	1,765,722
Inventory, net	10,782,176	10,979,891
Prepaid expenses and other assets	988,008	916,162
Total current assets	16,076,012	17,054,961
Long-term assets:
Inventory, net	21,975,251	20,848,647
Property and equipment, net	1,200,448	1,144,198
Intangible assets, net	72,577	34,833
Other assets	388,516	389,868
Total long-term assets	23,636,792	22,417,546
TOTAL ASSETS	39,712,804	39,472,507
Current liabilities:
Accounts payable	4,093,010	4,170,952
Accrued expenses and other liabilities	787,806	618,945
Total current liabilities	4,880,816	4,789,897
Long-term liabilities:
Deferred rent	354,332	393,051
Accrued income taxes	475,893	471,126
Total long-term liabilities	830,225	864,177
Total liabilities	5,711,041	5,654,074
Commitments and contingencies (Note 9)
Shareholders' equity:
Common stock, no par value; 50,000,000 shares authorized; 21,598,069 and 21,705,173 shares issued and outstanding at September 30, 2018 and June 30, 2018, respectively	54,247,296	54,243,816
Additional paid-in capital	15,032,018	14,962,071
Accumulated deficit	(35,277,551)	(35,387,454)
Total shareholders' equity	34,001,763	33,818,433
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 39,712,804	$ 39,472,507

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares	Sep. 30, 2018	Jun. 30, 2018
Shareholders' equity
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	21,598,069	21,705,173
Common stock, shares outstanding (in shares)	21,598,069	21,705,173

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) [Abstract]
Net sales	$ 6,594,706	$ 6,208,808
Costs and expenses:
Cost of goods sold	3,613,748	3,483,603
Sales and marketing	1,641,125	1,757,007
General and administrative	1,224,775	1,137,736
Research and development	0	489
Total costs and expenses	6,479,648	6,378,835
Income (Loss) from operations	115,058	(170,027)
Other expense:
Interest expense	(346)	(5)
Loss on foreign currency exchange	(29)	0
Other expense	(13)	0
Total other expense	(388)	(5)
Income (loss) before income taxes	114,670	(170,032)
Income tax expense	(4,767)	(4,507)
Net Income (Loss)	$ 109,903	$ (174,539)
Net income (loss) per common share:
Basic (in dollars per share)	$ 0.01	$ (0.01)
Diluted (in dollars per share)	$ 0.01	$ (0.01)
Weighted average number of shares used in computing net income (loss) per common share:
Basic (in shares)	21,454,977	21,218,468
Diluted (in shares)	21,658,516	21,218,468

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 109,903	$ (174,539)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	108,216	104,558
Stock-based compensation	71,176	119,103
(Recovery of) uncollectible accounts	(312)
Provision for uncollectible accounts		67,000
Provision for (recovery of) sales returns	25,000	(74,000)
Provision for (recovery of) inventory reserves	49,000	(3,000)
Recovery of accounts receivable discounts	(2,936)	0
Changes in operating assets and liabilities:
Accounts receivable	(342,076)	(612,754)
Inventory	(977,889)	(1,662,098)
Prepaid expenses and other assets, net	(70,494)	(91,331)
Accounts payable	(77,942)	1,019,483
Deferred rent	(38,719)	(34,541)
Accrued income taxes	4,767	4,507
Accrued expenses and other liabilities	168,861	196,567
Net cash used in operating activities	(973,445)	(1,141,045)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(164,099)	(19,651)
Intangible assets	(38,111)	(509)
Net cash used in investing activities	(202,210)	(20,160)
CASH FLOWS FROM FINANCING ACTIVITIES:
Stock option exercises	2,251	0
Net cash provided by financing activities	2,251	0
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(1,173,404)	(1,161,205)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD	3,393,186	6,289,111
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD	2,219,782	5,127,906
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	0	0
Cash paid during the period for taxes	$ 0	$ 0

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	3 Months Ended
	Sep. 30, 2018
DESCRIPTION OF BUSINESS [Abstract]
DESCRIPTION OF BUSINESS	1. DESCRIPTION OF BUSINESS Charles & Colvard, Ltd. (the “Company”), a North Carolina corporation founded in 1995, manufactures, markets, and distributes Charles & Colvard Created Moissanite ®

BASIS OF PRESENTATION AND SIGNI

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Sep. 30, 2018
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES [Abstract]
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The condensed consolidated financial statements as of and for the three months ended September 30, 2018 and 2017 included in this Quarterly Report on Form 10-Q are unaudited. The balance sheet as of June 30, 2018 is derived from the audited financial statements as of that date. The accompanying statements should be read in conjunction with the audited financial statements and related notes, together with Management’s Discussion and Analysis of Financial Condition and Results of Operations, contained in the Company’s Transition Report on Form 10-KT (the “2018 Transition Report”) for the six-month period ended June 30, 2018 (the “transition period ended June 30, 2018”) filed with the SEC on September 7, 2018. The accompanying condensed consolidated financial statements as of and for the three months ended September 30, 2018 and 2017 include the accounts of the Company and its wholly owned subsidiaries charlesandcolvard.com, LLC, formed in 2011; Charles & Colvard Direct, LLC, formed in 2011; and Charles & Colvard (HK) Ltd., the Company’s Hong Kong subsidiary, which was re-activated in December 2017. Charles & Colvard Direct, LLC, had no operating activity during the three-month period ended September 30, 2018 or the transition period ended June 30, 2018. Charles & Colvard (HK) Ltd. previously became dormant in the second quarter of 2009 and has had no operating activity since its operations ceased in 2008. All intercompany accounts have been eliminated. Significant Accounting Policies Use of Estimates Reclassifications Cash and Cash Equivalents – Restricted Cash – The Company has full access to its cash balances without restriction following the period of time such cash is held by White Oak. For detailed information regarding the Company’s asset-based revolving credit facility, see Note 10, “Line of Credit.” The reconciliation of cash, cash equivalents, and restricted cash, as presented on the Condensed Consolidated Statements of Cash Flows, consist of the following as of the dates presented: September 30, 2018 June 30, 2018 Cash and cash equivalents $ 2,086,565 $ 3,393,186 Restricted cash 133,217 - Total cash, cash equivalents, and restricted cash $ 2,219,782 $ 3,393,186 Recently Adopted/Issued Accounting Pronouncements In June 2018, the FASB issued guidance that is intended to reduce cost and complexity and to improve financial reporting for share-based payments to nonemployees. This new guidance of the adoption of this new guidance will not be material to the Company’s financial statements. In August 2018, the FASB issued additional guidance in connection with accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. The updated guidance of the adoption of this new pronouncement is not expected to be material to the Company’s financial statements.

SEGMENT INFORMATION AND GEOGRAP

SEGMENT INFORMATION AND GEOGRAPHIC DATA	3 Months Ended
	Sep. 30, 2018
SEGMENT INFORMATION AND GEOGRAPHIC DATA [Abstract]
SEGMENT INFORMATION AND GEOGRAPHIC DATA	3. SEGMENT INFORMATION AND GEOGRAPHIC DATA The Company reports segment information based on the “management” approach. The management approach designates the internal reporting used by management for making operating decisions and assessing performance as the source of the Company’s operating and reportable segments. The Company manages its business through two operating and reportable segments based on its distribution channels to sell its product lines, loose jewels and finished jewelry: its “Online Channels” segment, which consists of e-commerce outlets including charlesandcolvard.com, third-party online marketplaces, drop-ship, and other pure-play, exclusively e-commerce outlets; and its “Traditional” segment, which consists of wholesale, retail, and historically television customers. The accounting policies of the Online Channels segment and Traditional segment are the same as those described in Note 2, “Basis of Presentation and Significant Accounting Policies” of this Quarterly Report on Form 10-Q and in the Notes to the Consolidated Financial Statements in the 2018 Transition Report. The Company evaluates the financial performance of its segments based on net sales; product line gross profit, or the excess of product line sales over product line cost of goods sold; and operating income (loss). The Company’s product line cost of goods sold is defined as product cost of goods sold, excluding non-capitalized expenses from the Company’s manufacturing and production control departments, comprising personnel costs, depreciation, rent, utilities, and corporate overhead allocations; freight out; inventory valuation allowance adjustments; and other inventory adjustments, comprising costs of quality issues, damaged goods, and inventory write-downs. The Company allocates certain general and administrative expenses from its Traditional segment to its Online Channels segment primarily based on net sales and number of employees to arrive at segment operating income (loss). Unallocated expenses, which also include interest and taxes, remain in its Traditional segment. Summary financial information by reportable segment is as follows: Three Months Ended September 30, 2018 Online Channels Traditional Total Net sales Finished jewelry $ 2,115,940 $ 438,697 $ 2,554,637 Loose jewels 967,160 3,072,909 4,040,069 Total $ 3,083,100 $ 3,511,606 $ 6,594,706 Product line cost of goods sold Finished jewelry $ 833,389 $ 222,649 $ 1,056,038 Loose jewels 488,285 1,560,480 2,048,765 Total $ 1,321,674 $ 1,783,129 $ 3,104,803 Product line gross profit Finished jewelry $ 1,282,551 $ 216,048 $ 1,498,599 Loose jewels 478,875 1,512,429 1,991,304 Total $ 1,761,426 $ 1,728,477 $ 3,489,903 Operating income $ 83,747 $ 31,311 $ 115,058 Depreciation and amortization $ 28,076 $ 80,140 $ 108,216 Capital expenditures $ 1,250 $ 162,849 $ 164,099 Three Months Ended September 30, 2017 Online Channels Traditional Total Net sales Finished jewelry $ 1,383,351 $ 726,985 $ 2,110,336 Loose Jewels 691,380 3,407,092 4,098,472 Total $ 2,074,731 $ 4,134,077 6,208,808 Product line cost of goods sold Finished jewelry $ 610,762 $ 378,799 $ 989,561 Loose jewels 367,378 1,877,210 2,244,588 Total $ 978,140 $ 2,256,009 $ 3,234,149 Product line gross profit Finished jewelry $ 772,589 $ 348,186 $ 1,120,775 Loose jewels 324,002 1,529,882 1,853,884 Total $ 1,096,591 $ 1,878,068 $ 2,974,659 Operating (loss) income $ (280,628 ) $ 110,601 $ (170,027 ) Depreciation and amortization $ 30,277 $ 74,281 $ 104,558 Capital expenditures $ - $ 19,651 $ 19,651 The Company does not allocate any assets to the reportable segments, and therefore, no asset information is reported to the chief operating decision maker and disclosed in the financial information for each segment. A reconciliation of the Company’s product line cost of goods sold to cost of goods sold as reported in the condensed consolidated financial statements is as follows: Three Months Ended September 30, 2018 2017 Product line cost of goods sold $ 3,104,803 $ 3,234,149 Non-capitalized manufacturing and production control expenses 346,604 298,858 Freight out 99,119 100,016 Inventory valuation allowances 49,000 - Other inventory adjustments 14,222 (149,420 ) Cost of goods sold $ 3,613,748 $ 3,483,603 The Company recognizes sales by geographic area based on the country in which the customer is based. Sales to international end consumers made through our transactional website, charlesandcolvard.com, are included in U.S. sales because products are shipped and invoiced to a U.S.-based intermediary party that assumes all international shipping and credit risks. A portion of the Company’s Traditional segment sales made to international wholesale distributors represents products sold internationally that may be re-imported to U.S. retailers. All intangible assets, as well as property and equipment, as of September 30, 2018 and September 30, 2017, are held and located in the United States. The following presents net sales data by geographic area: Three Months Ended September 30, 2018 2017 Net sales: United States $ 5,822,870 $ 5,750,825 International 771,836 457,983 Total $ 6,594,706 $ 6,208,808

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Sep. 30, 2018
FAIR VALUE MEASUREMENTS [Abstract]
FAIR VALUE MEASUREMENTS	4. FAIR VALUE MEASUREMENTS Under U.S. GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are obtained from independent sources and can be validated by a third party, whereas unobservable inputs reflect assumptions regarding what a third party would use in pricing an asset or liability. The fair value hierarchy consists of three levels based on the reliability of inputs, as follows: · Level 1 · Level 2 · Level 3 The Company evaluates assets and liabilities subject to fair value measurements on a recurring and non-recurring basis to determine the appropriate level to classify them for each reporting period. This determination requires significant judgments to be made by management of the Company. The financial instruments identified as subject to fair value measurements on a recurring basis are cash, cash equivalents, restricted cash, trade accounts receivable, and trade accounts payable. All financial instruments are reflected in the condensed consolidated balance sheets at carrying value, which approximates fair value due to the short-term nature of these financial instruments. Assets that are measured at fair value on a non-recurring basis include property and equipment, leasehold improvements, and intangible assets comprising patents, license rights, and trademarks. These items are recognized at fair value when they are considered to be impaired. For the three months ended September 30, 2018 and 2017, no impairment was recorded.

INVENTORIES

INVENTORIES	3 Months Ended
	Sep. 30, 2018
INVENTORIES [Abstract]
INVENTORIES	5. INVENTORIES The Company’s total inventories, net of reserves, consisted of the following as of the dates presented: September 30, 2018 June 30, 2018 Raw materials $ 5,323,863 $ 5,083,436 Work-in-process 10,880,711 10,659,786 Finished goods 17,835,924 17,483,773 Finished goods on consignment 695,420 523,971 Supplies inventory 38,509 45,572 Less: inventory reserves (2,017,000 ) (1,968,000 ) Total $ 32,757,427 $ 31,828,538 Short-term portion $ 10,782,176 $ 10,979,891 Long-term portion 21,975,251 20,848,647 Total $ 32,757,427 $ 31,828,538 The Company’s work-in-process inventories include raw SiC crystals on which processing costs, such as labor and sawing, have been incurred; and components, such as metal castings and finished good moissanite jewels, that have been issued to jobs in the manufacture of finished jewelry. The Company’s moissanite jewel manufacturing process involves the production of intermediary shapes, called “preforms,” that vary depending upon the expected size and shape of the finished jewel. To maximize manufacturing efficiencies, preforms may be made in advance of current finished inventory needs but remain in work-in-process inventories. As of September 30, 2018 and June 30, 2018, work-in-process inventories issued to active production jobs approximated $2.62 million and $2.45 million, respectively. The Company’s jewels do not degrade in quality over time and inventory generally consists of the shapes and sizes most commonly used in the jewelry industry. In addition, the majority of jewel inventory is not mounted in finished jewelry settings and is therefore not subject to fashion trends nor is obsolescence a significant factor. The Company manufactures finished jewelry featuring moissanite. Relative to loose moissanite jewels, finished jewelry is more fashion-oriented and subject to styling trends that could render certain designs obsolete over time. While we expect expansion of our finished jewelry product offerings over time, the majority of the Company’s finished jewelry featuring moissanite is held in inventory for resale and largely consists of such core designs as stud earrings, solitaire and three-stone rings, pendants, and bracelets. We believe these finished jewelry products are less subject to significant obsolescence risk due to their classic styling. In addition, the Company generally holds smaller quantities of designer-inspired and trend moissanite fashion jewelry that is available for resale through retail companies and through its Online Channels segment. The Company also carries a limited amount of inventory as part of its sample line that is used in the selling process to its customers. The Company’s continuing operating subsidiaries carry no net inventories, and inventory is transferred without intercompany markup from the parent entity as product line cost of goods sold when sold to the end consumer. The Company’s total inventories, net of reserves, consisted of the following as of the dates presented: September 30, 2018 June 30, 2018 Finished jewelry: Raw materials $ 776,223 $ 595,649 Work-in-process 1,565,659 1,196,268 Finished goods 5,608,897 5,517,951 Finished goods on consignment 669,426 476,648 Total finished jewelry $ 8,620,205 $ 7,786,516 Loose jewels: Raw materials $ 4,547,640 $ 4,487,787 Work-in-process 9,315,052 9,463,518 Finished goods 10,224,027 10,015,822 Finished goods on consignment 11,994 29,323 Total loose jewels 24,098,713 23,996,450 Total supplies inventory 38,509 45,572 Total inventory $ 32,757,427 $ 31,828,538 Total net finished jewelry inventories at September 30, 2018 and June 30, 2018, including inventory on consignment net of reserves and finished jewelry featuring moissanite manufactured by the Company, were $8.62 million and $7.79 million, respectively. Total net loose jewel inventories at September 30, 2018 and June 30, 2018, including inventory on consignment net of reserves, were $24.10 million and $24.00 million, respectively. As of September 30, 2018 and June 30, 2018, management established an obsolescence reserve of $1.36 million and $1.30 million, respectively. Typically, in the jewelry industry, slow-moving or discontinued lines are sold as closeouts or liquidated in sales channels such as third-party online marketplaces, drop-ship, and other pure-play, exclusively e-commerce outlets. Regularly, management reviews the legacy loose jewel inventory for any lower of cost or net realizable value and obsolescence issues. Accordingly, based on current demand during the three months ended September 30, 2018, and ongoing feedback from customers on the value of some of these goods, management identified some of the remaining inventory of these lower quality goods that could not be sold at its current carrying value. Accordingly, management’s analysis revealed that while some of these items were sold during the three months ended September 30, 2018, the remaining items in the Company’s legacy inventory required an increase in the lower of cost or net realizable value reserve to approximately $1.32 million as of September 30, 2018 from $1.29 million as of June 30, 2018. As of September 30, 2018 and June 30, 2018, management identified certain finished jewelry that was obsolete due to damage and other factors that indicate the finished jewelry is unsaleable, and established an obsolescence reserve of $32,000 and $7,000, respectively, for the carrying costs in excess of any estimated scrap values. Management reviews the finished jewelry inventory on an ongoing basis for any lower of cost or net realizable value and obsolescence issues. As of September 30, 2018 and June 30, 2018 management established a rework reserve for recut and repairs of $434,000 and $534,000, respectively. Loose jewel inventories at September 30, 2018 and June 30, 2018 included recut reserves of $434,000 and $418,000, respectively. The finished jewelry inventories at September 30, 2018 and June 30, 2018 include a repairs reserve of $0 and $116,000, respectively. As of September 30, 2018 and June 30, 2018 management established a shrinkage reserve of $228,000 and $136,000, respectively. The loose jewel inventories at September 30, 2018 and June 30, 2018 include shrinkage reserves of $68,000 and $48,000, respectively. The finished jewelry inventories at September 30, 2018 and June 30, 2018 include shrinkage reserves of $160,000 and $88,000, respectively. Periodically, the Company ships finished goods inventory to certain Traditional segment customers on consignment terms. Under these terms, the customer assumes the risk of loss and has an absolute right of return for a specified period. Included in the total shrinkage reserve is the shrinkage reserve for finished goods on consignment of $14,000 and $18,000 as of September 30, 2018 and June 30, 2018, respectively, to allow for certain loose jewels and finished jewelry on consignment with certain Traditional segment customers that may not be returned or may be returned in a condition that does not meet the Company’s current grading or quality standards. The loose jewel inventories on consignment at September 30, 2018 and June 30, 2018 include shrinkage reserves of $8,000 and $11,000, respectively. The finished jewelry inventories on consignment at September 30, 2018 and June 30, 2018 include shrinkage reserves of $6,000 and $7,000, respectively. The need for adjustments to inventory-related reserves and valuation allowances is evaluated on a period-by-period basis. Changes to the Company’s inventory reserves and allowances are accounted for in the current accounting period in which a change in such reserves and allowances is observed and deemed appropriate, including changes in management’s estimates used in the process to determine such reserves and valuation allowances.

RETURNS ASSET AND REFUND LIABIL

RETURNS ASSET AND REFUND LIABILITIES	3 Months Ended
	Sep. 30, 2018
RETURNS ASSET AND REFUND LIABILITIES [Abstract]
RETURNS ASSET AND REFUND LIABILITIES	6. RETURNS ASSET AND REFUND LIABILITIES In connection with the Company’s adoption of the new revenue recognition accounting standard issued by the FASB as of the initial application date of January 1, 2018, the Company established a returns asset account and a refund liabilities account to record the effects of its estimated product returns and sales returns allowance. The Company’s returns asset and refund liabilities are updated at the end of each financial reporting period and the effect of such changes are accounted for in the period in which such changes occur. The Company estimates anticipated product returns in the form of a refund liability based on historical return percentages and current period sales levels. The Company also accrues a related returns asset for goods expected to be returned in salable condition, less any expected costs to recover such goods, including return shipping costs that the Company may incur. As of September 30, 2018 and June 30, 2018, the Company’s refund liabilities balances were $673,000 and $648,000, respectively, and are included within accounts receivable, net, in the accompanying condensed consolidated balance sheets. As of September 30, 2018 and June 30, 2018, the Company’s returns asset balances were $262,000 and $250,000, respectively, and are included within prepaid expenses and other assets in the accompanying condensed consolidated balance sheets. Prior to the adoption of the new revenue recognition accounting standard, the Company reported the net effect of its estimated returns asset as an adjustment to its inventory balances.

ACCRUED EXPENSES AND OTHER LIAB

ACCRUED EXPENSES AND OTHER LIABILITIES	3 Months Ended
	Sep. 30, 2018
ACCRUED EXPENSES AND OTHER LIABILITIES [Abstract]
ACCRUED EXPENSES AND OTHER LIABILITIES	7. ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities, current, consist of the following as of the dates presented: September 30, 2018 June 30, 2018 Accrued compensation and related benefits $ 503,249 $ 359,077 Deferred rent 143,736 139,558 Accrued cooperative advertising 86,881 60,784 Accrued sales tax 10,102 17,149 Other 43,838 42,377 Total accrued expenses and other liabilities $ 787,806 $ 618,945

INCOME TAXES

INCOME TAXES	3 Months Ended
	Sep. 30, 2018
INCOME TAXES [Abstract]
INCOME TAXES	8. INCOME TAXES The Company recognized an income tax net expense for estimated tax, penalties, and interest associated with uncertain tax positions of approximately $5,000 for each of the three months ended September 30, 2018 and 2017, respectively. As of each reporting date, management considers new evidence, both positive and negative, that could impact its view with regard to future realization of deferred tax assets. As of September 30, 2018 and June 30, 2018, the Company’s management determined that sufficient negative evidence continued to exist to conclude it was uncertain that the Company would have sufficient future taxable income to utilize its deferred tax assets. Therefore, as set forth above, notwithstanding the possible effects on its deferred tax assets as a result of the Tax Act, the Company continued to maintain a full valuation allowance against its deferred tax assets as of September 30, 2018 and June 30, 2018.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Sep. 30, 2018
COMMITMENTS AND CONTINGENCIES [Abstract]
COMMITMENTS AND CONTINGENCIES	9. COMMITMENTS AND CONTINGENCIES Purchase Commitments On December 12, 2014, the Company entered into an exclusive supply agreement (the “Supply Agreement”) with Cree, Inc. (“Cree”). Under the Supply Agreement, subject to certain terms and conditions, the Company agreed to exclusively purchase from Cree, and Cree agreed to exclusively supply, 100% of the Company’s required SiC materials in quarterly installments that must equal or exceed a set minimum order quantity. The initial term of the Supply Agreement was scheduled to expire on June 24, 2018, unless extended by the parties. Effective June 22, 2018, the Supply Agreement was amended to extend the expiration date to June 25, 2023. The Supply Agreement was also amended to (i) provide the Company with one option, subject to certain conditions, to unilaterally extend the term of the Supply Agreement for an additional two-year period following expiration of the initial term; (ii) establish a process by which Cree may begin producing alternate SiC material based on the Company’s specifications that will give the Company the flexibility to use the materials in a broader variety of its products; and (iii) permit the Company to purchase certain amounts of SiC materials from third parties under limited conditions. The Company’s total purchase commitment under the Supply Agreement until June 2023 is approximately $52.95 million, of which approximately $50.84 remains to be purchased as of September 30, 2018. Over the life of the Supply Agreement, as amended, the Company’s future minimum annual purchase commitments of SiC crystals range from approximately $9 million to $12 million each year. During the three months ended September 30, 2018, the Company purchased approximately $2.11 million of SiC crystals from Cree pursuant to the terms of the Supply Agreement, as amended. During the three months ended September 30, 2017, the Company purchased approximately $2.49 million of SiC crystals from Cree. These purchases in 2017 were pursuant to the terms and conditions of the Supply Agreement prior to the effective date of its amendment as of June 22, 2018.

LINE OF CREDIT

LINE OF CREDIT	3 Months Ended
	Sep. 30, 2018
LINE OF CREDIT [Abstract]
LINE OF CREDIT	10. LINE OF CREDIT On July 13, 2018, the Company and its wholly-owned subsidiary, charlesandcolvard.com, LLC (collectively, the “Borrowers”), obtained a $5.00 million asset-based revolving credit facility (the “White Oak Credit Facility”) from White Oak Commercial Finance, LLC, (“White Oak”). The White Oak Credit Facility may be used for general corporate and working capital purposes, including permitted acquisitions. The White Oak Credit Facility, which matures on July 13, 2021, is guaranteed by Charles & Colvard Direct, LLC, a wholly-owned subsidiary of the Company (the “Guarantor”). Under the terms of the White Oak Credit Facility, the Borrowers must maintain at least $500,000 in excess availability at all times. The White Oak Credit Facility contains no other financial covenants. Advances under the White Oak Credit Facility are limited to a borrowing base, which is computed by applying specified advance rates to the value of the Borrowers’ eligible accounts receivable and inventory, plus the value of precious metal jewelry components, less reserves. The inclusion of inventory and precious metal jewelry components in the borrowing base was subject to the completion of an inventory appraisal, which was completed subsequent to the execution of the White Oak Credit Facility. Eligible inventory is further limited to 60% of the net borrowing base, while precious metal jewelry components are limited to $500,000. Advances may be either revolving or non-revolving. Non-revolving advances are limited to $1.00 million in aggregate principal amount outstanding and must be repaid on each January 15 (which may be effected by conversion to revolving advances, absent an event of default). There are no other mandatory prepayments or line reductions. The Company may elect to prepay advances in whole or in part at any time without penalty. In addition, the White Oak Credit Facility may be terminated by the Company at any time, subject to a $100,000 fee in the first year of the term of the White Oak Credit Facility, a $50,000 fee in the second year, and no fee thereafter. In connection with the White Oak Credit Facility, the Company is incurring a non-refundable origination fee in the amount of $125,000 that is due and payable to White Oak in three installments. The first installment in the amount of $41,667 was paid upon execution of the White Oak Credit Facility on July 13, 2018. The second installment in the amount of $41,667 will be due and payable on July 13, 2019, or the date of termination, whichever is sooner, and the third and final installment in the amount of $41,666 will be due and payable on July 13, 2020, or the date of termination, whichever is sooner. During the first year of the term of the White Oak Credit Facility, revolving advances will accrue interest at a rate equal to one-month LIBOR (reset monthly, and subject to a 1.25% floor) plus 3.75%, and non-revolving advances will accrue interest at such LIBOR rate plus 4.75%. Thereafter, the interest margins will reduce upon the Company’s achievement of a specified fixed charge coverage ratio. However, advances are in all cases subject to a minimum interest rate of 5.50%. Interest is calculated on an actual/360 basis and payable monthly in arrears. Principal outstanding during an event of default accrues interest at a rate 2% in excess of the rate otherwise applicable. The White Oak Credit Facility is secured by a lien on substantially all assets of the Borrowers, each of which is jointly and severally liable for all obligations thereunder. White Oak’s security interest in certain SiC materials is subordinate to Cree’s security interest in such materials pursuant to the Company’s Supply Agreement and an Intercreditor Agreement by and among the Borrowers and the Guarantor with White Oak. In addition, White Oak’s security interest in certain tangible personal property of the Company is subordinate to its landlord’s security interest in such tangible personal property. The White Oak Credit Facility is evidenced by a credit agreement, dated as of July 13, 2018 (the “Credit Agreement”), a security agreement, dated as of July 13, 2018 (the “Security Agreement”), and customary ancillary documents. The Credit Agreement, Security Agreement, and ancillary documents contain customary covenants, representations, fees, and cash dominion provisions, including a financial reporting covenant and limitations on dividends, distributions, debt, liens, loans, investments, mergers, acquisitions, divestitures, and affiliate transactions. Events of default under the White Oak Credit Facility include, without limitation, a change in control, an event of default under other indebtedness of the Borrowers or Guarantor in excess of $250,000, a material adverse change in the business of the Borrowers or Guarantor or in their ability to perform their obligations under the White Oak Credit Facility, and other defined circumstances that White Oak believes may impair the prospect of repayment. If an event of default occurs, White Oak is entitled to take enforcement action, including acceleration of amounts due under the White Oak Credit Facility and foreclosure upon collateral. The White Oak Credit Facility contains other customary terms that include indemnity, collateral monitoring fee, minimum interest charge, expense reimbursement, yield protection, and confidentiality provisions. As of September 30, 2018, the Company had not borrowed against the White Oak Credit Facility. Prior to obtaining the White Oak Credit Facility, the Company and its wholly owned subsidiaries, Charles & Colvard Direct, LLC, and charlesandcolvard.com, LLC) (collectively, the “Wells Fargo Borrowers”), had a $10.00 million asset-based revolving credit facility from Wells Fargo . This asset-based revolving credit facility (the “ Wells Fargo Credit Facility”) was available for general corporate and working capital purposes, including transaction fees and expenses incurred in connection therewith, and the issuance of letters of credit up to a $1.00 million sublimit. The effective date of the Wells Fargo Credit Facility was June 25, 2014, and it was scheduled to mature on June 25, 2017. Effective June 22, 2017, the Wells Fargo Credit Facility was amended to extend the maturity date to June 25, 2018, the date upon which it matured in accordance with its terms. The Wells Fargo Credit Facility was also amended in June 2017 to reduce the interest rate payable on advances as set forth below and was amended further to include the addition of an EBITDA covenant, whereby the Wells Fargo Borrowers were required to maintain a specified minimum monthly EBITDA through December 2017 if the cash position for the Wells Fargo Borrowers’ demand deposit account maintained at Wells Fargo had fallen below $3.00 million or the Wells Fargo Borrowers had drawn upon the Wells Fargo Credit Facility. In connection with the June 2017 amendment to the Wells Fargo Credit Facility, the Company paid a 3% facility fee to Wells Fargo in the amount of $150,000 that was amortized fully over the term of the underlying amendment through and as of June 25, 2018. The Wells Fargo Wells Fargo Wells Fargo Any advances would have accrued interest at a rate equal to either (i) Wells Fargo’s three-month LIBOR rate plus 2.00%, or (ii) Wells Fargo’s Prime Rate plus 1%, each calculated on an actual/360 basis and would have been payable monthly in arrears. Principal outstanding during an event of default, which did not occur during the term of the Wells Fargo would have accrued interest at a rate of 3% in excess of the above rate. Any advance could have been prepaid in whole or in part at any time and there were no mandatory prepayments or line reductions. The Wells Fargo Credit Facility was secured by a lien on substantially all assets of the Wells Fargo Borrowers, each of which was jointly and severally liable for all obligations thereunder. Wells Fargo’s security interest in certain SiC materials was subordinate to Cree’s security interest in such materials pursuant to the Supply Agreement and an Intercreditor Agreement with Wells Fargo. The Wells Fargo Credit Facility was evidenced by a Credit and Security Agreement, dated as of June 25, 2014, as amended (the “Wells Fargo Credit Agreement”), and customary ancillary documents. The Wells Fargo Credit Agreement contained customary covenants, representations and cash dominion provisions, including a financial reporting covenant and limitations on dividends, distributions, debt, contingent obligations, liens, loans, investments, mergers, acquisitions, divestitures, subsidiaries, affiliate transactions, and changes in control. Events of default under the Wells Fargo Credit Facility included, without limitation, (i) any impairment of the Export-Import Bank guaranty, unless the guaranteed advances were repaid within two business days, (ii) an event of default under any other indebtedness of the Wells Fargo Borrowers in excess of $200,000, and (iii) a material adverse change in the ability of the Wells Fargo Borrowers to perform their obligations under the Wells Fargo Credit Agreement or in the Wells Fargo Borrowers’ assets, liabilities, businesses or prospects, or other circumstances that Wells Fargo believed would have impaired the prospect of repayment. If an event of default had occurred, Wells Fargo would have been entitled to take enforcement action, including an acceleration of any amounts due under the Wells Fargo Credit Agreement and foreclosure upon collateral. The Wells Fargo Credit Agreement contained other customary terms that included indemnity, expense reimbursement, yield protection, and confidentiality provisions. The Company had not borrowed against the Wells Fargo Credit Facility as of June 25, 2018, the date upon which the Wells Fargo Credit Facility matured and was terminated in accordance with its terms.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	Sep. 30, 2018
STOCK-BASED COMPENSATION [Abstract]
STOCK-BASED COMPENSATION	11. STOCK-BASED COMPENSATION The following table summarizes the components of the Company’s stock-based compensation included in net income (loss): Three Months Ended September 30, 2018 2017 Employee stock options $ 58,172 $ 93,631 Restricted stock awards 13,004 25,472 Totals $ 71,176 $ 119,103 No stock-based compensation was capitalized as a cost of inventory during the three months ended September 30, 2018 or 2017. Stock Options – Shares Weighted Average Exercise Price Outstanding, June 30, 2018 2,388,169 $ 1.46 Exercised (2,500 ) $ 0.90 Forfeited (12,500 ) $ 1.05 Expired (41,756 ) $ 1.73 Outstanding, September 30, 2018 2,331,413 $ 1.46 No stock options were granted during the three months ended September 30, 2018. The total fair value of stock options that vested during the three months ended September 30, 2018 was approximately $22,000. The following table summarizes information about stock options outstanding at September 30, 2018: Options Outstanding Options Exercisable Options Vested or Expected to Vest Balance as of 9/30/2018 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Balance as of 9/30/2018 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Balance as of 9/30/2018 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price 2,331,413 7.24 $ 1.46 1,901,506 6.86 $ 1.53 2,227,628 7.17 $ 1.47 As of September 30, 2018, the unrecognized stock-based compensation expense related to unvested stock options was approximately $196,000, which is expected to be recognized over a weighted average period of approximately 25 months. The aggregate intrinsic value of stock options outstanding, exercisable, and vested or expected to vest at September 30, 2018 was approximately $7,000. This amount is before applicable income taxes and represents the closing market price of the Company’s common stock at June 30, 2018 less the grant price, multiplied by the number of stock options that had a grant price that is less than the closing market price. This amount represents the amount that would have been received by the optionees had these stock options been exercised on that date. During the three months ended September 30, 2018, the aggregate intrinsic value of stock options exercised was approximately $300. No stock options were exercised during the three months ended September 30, 2017. Restricted Stock – Shares Weighted Average Grant Date Fair Value Unvested, June 30, 2018 264,000 $ 1.25 Vested (24,896 ) $ 1.31 Canceled (109,604 ) $ 1.31 Unvested, September 30, 2018 129,500 $ 1.18 No restricted stock shares were granted during the three months ended September 30, 2018. As of September 30, 2018, the estimated unrecognized stock-based compensation expense related to unvested restricted shares subject to achievement of performance goals was approximately $82,000, all of which is expected to be recognized over a weighted average period of approximately three months. Dividends

NET INCOME (LOSS) PER COMMON SH

NET INCOME (LOSS) PER COMMON SHARE	3 Months Ended
	Sep. 30, 2018
NET INCOME (LOSS) PER COMMON SHARE [Abstract]
NET INCOME (LOSS) PER COMMON SHARE	12. NET INCOME (LOSS) PER COMMON SHARE Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the periods. Diluted net income (loss) from operations per common share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the periods. Common equivalent shares consist of stock options and unvested restricted shares that are computed using the treasury stock method. Antidilutive stock awards consist of stock options that would have been antidilutive in the application of the treasury stock method. The following table reconciles the differences between the basic and diluted net income (loss) per share presentations: Three Months Ended September 30, 2018 2017 Numerator: Net income (loss) $ 109,903 $ (174,539 ) Denominator: Weighted average common shares outstanding: Basic 21,454,977 21,218,468 Stock options 74,039 - Restricted shares 129,500 - Diluted 21,658,516 21,218,468 Net income (loss) per common share: Basic $ 0.01 $ (0.01 ) Diluted $ 0.01 $ (0.01 ) For the three months ended September 30, 2018 and 2017, stock options to purchase approximately 2.23 and 2.15 million shares, respectively, were excluded from the computation of diluted net income (loss) per common share because the exercise price of the stock options was greater than the average market price of the common shares or the effect of inclusion of such amounts would be anti-dilutive to net income (loss) per common share. For the three months ended September 30, 2018 and 2017, approximately 0 and 374,000 restricted shares, respectively, that have been issued but not yet vested have been excluded from the computation of diluted net income (loss) per common share.

MAJOR CUSTOMERS AND CONCENTRATI

MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK	3 Months Ended
	Sep. 30, 2018
MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK [Abstract]
MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK	13. MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, and restricted cash and trade accounts receivable. At times, cash balances may exceed the Federal Deposit Insurance Corporation (the “FDIC”) insurable limits of $250,000 per depositor at each financial institution. The Company has never experienced any losses related to these balances. Non-interest-bearing amounts on deposit in excess of FDIC insurable limits at September 30, 2018 approximated $1.72 million. Trade receivables potentially subject the Company to credit risk. Payment terms on trade receivables for the Company’s Traditional segment customers are generally between 30 and 120 days, though it may offer extended terms with specific customers and on significant orders from time to time. The Company believes its competitors and other vendors in the wholesale jewelry industry have also expanded their use of extended payment terms and, in aggregate, the Company believes that by expanding its use of extended payment terms, it has provided a competitive response in its market and that its net sales have been favorably impacted. The Company is unable to estimate the impact of this program on its net sales, but if it ceased providing extended payment terms in select instances, the Company believes it would not be competitive for some Traditional segment customers in the marketplace and that its net sales and profits would likely decrease. The Company extends credit to its customers based upon a number of factors, including an evaluation of the customer’s financial condition and credit history that is verified through trade association reference services, the customer’s payment history with the Company, the customer’s reputation in the trade, and/or an evaluation of the Company’s opportunity to introduce its moissanite jewels or finished jewelry featuring moissanite to new or expanded markets. Collateral is not generally required from customers. The need for an allowance for doubtful accounts is determined based upon factors surrounding the credit risk of specific customers, historical trends, and other information. During the three months ended September 30, 2018 and 2017, the Company has not experienced significant accounts receivable write-offs related to revenue arrangements with extended payment terms. At times, a portion of the Company’s accounts receivable will be due from customers that have individual balances of 10% or more of the Company’s total gross accounts receivable. The following is a summary of customers that represent 10% or more of total gross accounts receivable: September 30, 2018 June 30, 2018 Customer A 17 % 10 % Customer B 17 % 23 % Customer C 11 % * % Customer D 11 % * % Customer E 10 % * % * Customer C, Customer D, and Customer E did not have individual balances that represented 10% or more of the total gross accounts receivable as of June 30, 2018. A significant portion of sales is derived from certain customer relationships. The following is a summary of customers that represent 10% or more of total net sales: Three Months Ended September 30, 2018 2017 Customer A * % 11 % Customer B 14 % 23 % Customer C 10 % 10 % * Customer A did not have net sales that represented 10% or more of total net sales for the three months ended September 30, 2018.

BASIS OF PRESENTATION AND SIG_2

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Sep. 30, 2018
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The condensed consolidated financial statements as of and for the three months ended September 30, 2018 and 2017 included in this Quarterly Report on Form 10-Q are unaudited. The balance sheet as of June 30, 2018 is derived from the audited financial statements as of that date. The accompanying statements should be read in conjunction with the audited financial statements and related notes, together with Management’s Discussion and Analysis of Financial Condition and Results of Operations, contained in the Company’s Transition Report on Form 10-KT (the “2018 Transition Report”) for the six-month period ended June 30, 2018 (the “transition period ended June 30, 2018”) filed with the SEC on September 7, 2018. The accompanying condensed consolidated financial statements as of and for the three months ended September 30, 2018 and 2017 include the accounts of the Company and its wholly owned subsidiaries charlesandcolvard.com, LLC, formed in 2011; Charles & Colvard Direct, LLC, formed in 2011; and Charles & Colvard (HK) Ltd., the Company’s Hong Kong subsidiary, which was re-activated in December 2017. Charles & Colvard Direct, LLC, had no operating activity during the three-month period ended September 30, 2018 or the transition period ended June 30, 2018. Charles & Colvard (HK) Ltd. previously became dormant in the second quarter of 2009 and has had no operating activity since its operations ceased in 2008. All intercompany accounts have been eliminated.
Significant Accounting Policies	Significant Accounting Policies
Use of Estimates	Use of Estimates
Reclassifications	Reclassifications
Cash and Cash Equivalents	Cash and Cash Equivalents –
Restricted Cash	Restricted Cash – The Company has full access to its cash balances without restriction following the period of time such cash is held by White Oak. For detailed information regarding the Company’s asset-based revolving credit facility, see Note 10, “Line of Credit.” The reconciliation of cash, cash equivalents, and restricted cash, as presented on the Condensed Consolidated Statements of Cash Flows, consist of the following as of the dates presented: September 30, 2018 June 30, 2018 Cash and cash equivalents $ 2,086,565 $ 3,393,186 Restricted cash 133,217 - Total cash, cash equivalents, and restricted cash $ 2,219,782 $ 3,393,186
Recently Adopted/Issued Accounting Pronouncements	Recently Adopted/Issued Accounting Pronouncements In June 2018, the FASB issued guidance that is intended to reduce cost and complexity and to improve financial reporting for share-based payments to nonemployees. This new guidance of the adoption of this new guidance will not be material to the Company’s financial statements. In August 2018, the FASB issued additional guidance in connection with accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. The updated guidance of the adoption of this new pronouncement is not expected to be material to the Company’s financial statements.

BASIS OF PRESENTATION AND SIG_3

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Sep. 30, 2018
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Cash, Cash Equivalents and Restricted Cash	The reconciliation of cash, cash equivalents, and restricted cash, as presented on the Condensed Consolidated Statements of Cash Flows, consist of the following as of the dates presented: September 30, 2018 June 30, 2018 Cash and cash equivalents $ 2,086,565 $ 3,393,186 Restricted cash 133,217 - Total cash, cash equivalents, and restricted cash $ 2,219,782 $ 3,393,186

SEGMENT INFORMATION AND GEOGR_2

SEGMENT INFORMATION AND GEOGRAPHIC DATA (Tables)	3 Months Ended
	Sep. 30, 2018
SEGMENT INFORMATION AND GEOGRAPHIC DATA [Abstract]
Financial Information by Reportable Segment	Summary financial information by reportable segment is as follows: Three Months Ended September 30, 2018 Online Channels Traditional Total Net sales Finished jewelry $ 2,115,940 $ 438,697 $ 2,554,637 Loose jewels 967,160 3,072,909 4,040,069 Total $ 3,083,100 $ 3,511,606 $ 6,594,706 Product line cost of goods sold Finished jewelry $ 833,389 $ 222,649 $ 1,056,038 Loose jewels 488,285 1,560,480 2,048,765 Total $ 1,321,674 $ 1,783,129 $ 3,104,803 Product line gross profit Finished jewelry $ 1,282,551 $ 216,048 $ 1,498,599 Loose jewels 478,875 1,512,429 1,991,304 Total $ 1,761,426 $ 1,728,477 $ 3,489,903 Operating income $ 83,747 $ 31,311 $ 115,058 Depreciation and amortization $ 28,076 $ 80,140 $ 108,216 Capital expenditures $ 1,250 $ 162,849 $ 164,099 Three Months Ended September 30, 2017 Online Channels Traditional Total Net sales Finished jewelry $ 1,383,351 $ 726,985 $ 2,110,336 Loose Jewels 691,380 3,407,092 4,098,472 Total $ 2,074,731 $ 4,134,077 6,208,808 Product line cost of goods sold Finished jewelry $ 610,762 $ 378,799 $ 989,561 Loose jewels 367,378 1,877,210 2,244,588 Total $ 978,140 $ 2,256,009 $ 3,234,149 Product line gross profit Finished jewelry $ 772,589 $ 348,186 $ 1,120,775 Loose jewels 324,002 1,529,882 1,853,884 Total $ 1,096,591 $ 1,878,068 $ 2,974,659 Operating (loss) income $ (280,628 ) $ 110,601 $ (170,027 ) Depreciation and amortization $ 30,277 $ 74,281 $ 104,558 Capital expenditures $ - $ 19,651 $ 19,651
Reconciliation of Product Line Cost of Goods Sold to Cost of Goods Sold as Reported in Consolidated Financial Statements	A reconciliation of the Company’s product line cost of goods sold to cost of goods sold as reported in the condensed consolidated financial statements is as follows: Three Months Ended September 30, 2018 2017 Product line cost of goods sold $ 3,104,803 $ 3,234,149 Non-capitalized manufacturing and production control expenses 346,604 298,858 Freight out 99,119 100,016 Inventory valuation allowances 49,000 - Other inventory adjustments 14,222 (149,420 ) Cost of goods sold $ 3,613,748 $ 3,483,603
Net Sales by Geographic Area	The following presents net sales data by geographic area: Three Months Ended September 30, 2018 2017 Net sales: United States $ 5,822,870 $ 5,750,825 International 771,836 457,983 Total $ 6,594,706 $ 6,208,808

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Sep. 30, 2018
INVENTORIES [Abstract]
Inventory, Net of Reserves	The Company’s total inventories, net of reserves, consisted of the following as of the dates presented: September 30, 2018 June 30, 2018 Raw materials $ 5,323,863 $ 5,083,436 Work-in-process 10,880,711 10,659,786 Finished goods 17,835,924 17,483,773 Finished goods on consignment 695,420 523,971 Supplies inventory 38,509 45,572 Less: inventory reserves (2,017,000 ) (1,968,000 ) Total $ 32,757,427 $ 31,828,538 Short-term portion $ 10,782,176 $ 10,979,891 Long-term portion 21,975,251 20,848,647 Total $ 32,757,427 $ 31,828,538
Inventories by Product Line Maintained in its Wholesale Distribution Segment	The Company’s total inventories, net of reserves, consisted of the following as of the dates presented: September 30, 2018 June 30, 2018 Finished jewelry: Raw materials $ 776,223 $ 595,649 Work-in-process 1,565,659 1,196,268 Finished goods 5,608,897 5,517,951 Finished goods on consignment 669,426 476,648 Total finished jewelry $ 8,620,205 $ 7,786,516 Loose jewels: Raw materials $ 4,547,640 $ 4,487,787 Work-in-process 9,315,052 9,463,518 Finished goods 10,224,027 10,015,822 Finished goods on consignment 11,994 29,323 Total loose jewels 24,098,713 23,996,450 Total supplies inventory 38,509 45,572 Total inventory $ 32,757,427 $ 31,828,538

ACCRUED EXPENSES AND OTHER LI_2

ACCRUED EXPENSES AND OTHER LIABILITIES (Tables)	3 Months Ended
	Sep. 30, 2018
ACCRUED EXPENSES AND OTHER LIABILITIES [Abstract]
Accrued Expenses and Other Liabilities	Accrued expenses and other liabilities, current, consist of the following as of the dates presented: September 30, 2018 June 30, 2018 Accrued compensation and related benefits $ 503,249 $ 359,077 Deferred rent 143,736 139,558 Accrued cooperative advertising 86,881 60,784 Accrued sales tax 10,102 17,149 Other 43,838 42,377 Total accrued expenses and other liabilities $ 787,806 $ 618,945

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Sep. 30, 2018
STOCK-BASED COMPENSATION [Abstract]
Stock Based Compensation	The following table summarizes the components of the Company’s stock-based compensation included in net income (loss): Three Months Ended September 30, 2018 2017 Employee stock options $ 58,172 $ 93,631 Restricted stock awards 13,004 25,472 Totals $ 71,176 $ 119,103
Stock Option Activity	The following is a summary of the stock option activity for the three months ended September 30, 2018: Shares Weighted Average Exercise Price Outstanding, June 30, 2018 2,388,169 $ 1.46 Exercised (2,500 ) $ 0.90 Forfeited (12,500 ) $ 1.05 Expired (41,756 ) $ 1.73 Outstanding, September 30, 2018 2,331,413 $ 1.46
Information About Stock Options Outstanding	The following table summarizes information about stock options outstanding at September 30, 2018: Options Outstanding Options Exercisable Options Vested or Expected to Vest Balance as of 9/30/2018 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Balance as of 9/30/2018 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Balance as of 9/30/2018 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price 2,331,413 7.24 $ 1.46 1,901,506 6.86 $ 1.53 2,227,628 7.17 $ 1.47
Restricted Stock Activity	The following is a summary of the restricted stock activity for the three months ended September 30, 2018: Shares Weighted Average Grant Date Fair Value Unvested, June 30, 2018 264,000 $ 1.25 Vested (24,896 ) $ 1.31 Canceled (109,604 ) $ 1.31 Unvested, September 30, 2018 129,500 $ 1.18

NET INCOME (LOSS) PER COMMON _2

NET INCOME (LOSS) PER COMMON SHARE (Tables)	3 Months Ended
	Sep. 30, 2018
NET INCOME (LOSS) PER COMMON SHARE [Abstract]
Reconciliation of Basic and Diluted Net Income (Loss) Per Share	The following table reconciles the differences between the basic and diluted net income (loss) per share presentations: Three Months Ended September 30, 2018 2017 Numerator: Net income (loss) $ 109,903 $ (174,539 ) Denominator: Weighted average common shares outstanding: Basic 21,454,977 21,218,468 Stock options 74,039 - Restricted shares 129,500 - Diluted 21,658,516 21,218,468 Net income (loss) per common share: Basic $ 0.01 $ (0.01 ) Diluted $ 0.01 $ (0.01 )

MAJOR CUSTOMERS AND CONCENTRA_2

MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK (Tables)	3 Months Ended
	Sep. 30, 2018
MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK [Abstract]
Customers That Represent Greater Than or Equal to 10% of Total Net Sales and Receivables	The following is a summary of customers that represent 10% or more of total gross accounts receivable: September 30, 2018 June 30, 2018 Customer A 17 % 10 % Customer B 17 % 23 % Customer C 11 % * % Customer D 11 % * % Customer E 10 % * % * Customer C, Customer D, and Customer E did not have individual balances that represented 10% or more of the total gross accounts receivable as of June 30, 2018. A significant portion of sales is derived from certain customer relationships. The following is a summary of customers that represent 10% or more of total net sales: Three Months Ended September 30, 2018 2017 Customer A * % 11 % Customer B 14 % 23 % Customer C 10 % 10 % * Customer A did not have net sales that represented 10% or more of total net sales for the three months ended September 30, 2018.

BASIS OF PRESENTATION AND SIG_4

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Sep. 30, 2018	Jun. 30, 2018	Sep. 30, 2017	Jun. 30, 2017
Cash, Cash Equivalents and Restricted Cash [Abstract]
Cash and cash equivalents	$ 2,086,565	$ 3,393,186
Restricted cash	133,217	0
Total cash, cash equivalents, and restricted cash	$ 2,219,782	$ 3,393,186	$ 5,127,906	$ 6,289,111

SEGMENT INFORMATION AND GEOGR_3

SEGMENT INFORMATION AND GEOGRAPHIC DATA, Product Line (Details)	3 Months Ended
	Sep. 30, 2018USD ($)Segment	Sep. 30, 2017USD ($)
SEGMENT INFORMATION AND GEOGRAPHIC DATA [Abstract]
Number of operating segments | Segment	2
Number of reportable segments | Segment	2
Summary information by segment [Abstract]
Net sales	$ 6,594,706	$ 6,208,808
Product line cost of goods sold	3,613,748	3,483,603
Operating (loss) income	115,058	(170,027)
Depreciation and amortization	108,216	104,558
Capital expenditures	164,099	19,651
Continuing Operations [Member]
Summary information by segment [Abstract]
Net sales	6,594,706	6,208,808
Product line cost of goods sold	3,104,803	3,234,149
Product line gross profit	3,489,903	2,974,659
Operating (loss) income	115,058	(170,027)
Depreciation and amortization	108,216	104,558
Capital expenditures	164,099	19,651
Continuing Operations [Member] | Finished Jewelry [Member]
Summary information by segment [Abstract]
Net sales	2,554,637	2,110,336
Product line cost of goods sold	1,056,038	989,561
Product line gross profit	1,498,599	1,120,775
Continuing Operations [Member] | Loose Jewels [Member]
Summary information by segment [Abstract]
Net sales	4,040,069	4,098,472
Product line cost of goods sold	2,048,765	2,244,588
Product line gross profit	1,991,304	1,853,884
Operating and Reportable Segments [Member] | Continuing Operations [Member] | Online Channels [Member]
Summary information by segment [Abstract]
Net sales	3,083,100	2,074,731
Product line cost of goods sold	1,321,674	978,140
Product line gross profit	1,761,426	1,096,591
Operating (loss) income	83,747	(280,628)
Depreciation and amortization	28,076	30,277
Capital expenditures	1,250	0
Operating and Reportable Segments [Member] | Continuing Operations [Member] | Online Channels [Member] | Finished Jewelry [Member]
Summary information by segment [Abstract]
Net sales	2,115,940	1,383,351
Product line cost of goods sold	833,389	610,762
Product line gross profit	1,282,551	772,589
Operating and Reportable Segments [Member] | Continuing Operations [Member] | Online Channels [Member] | Loose Jewels [Member]
Summary information by segment [Abstract]
Net sales	967,160	691,380
Product line cost of goods sold	488,285	367,378
Product line gross profit	478,875	324,002
Operating and Reportable Segments [Member] | Continuing Operations [Member] | Traditional [Member]
Summary information by segment [Abstract]
Net sales	3,511,606	4,134,077
Product line cost of goods sold	1,783,129	2,256,009
Product line gross profit	1,728,477	1,878,068
Operating (loss) income	31,311	110,601
Depreciation and amortization	80,140	74,281
Capital expenditures	162,849	19,651
Operating and Reportable Segments [Member] | Continuing Operations [Member] | Traditional [Member] | Finished Jewelry [Member]
Summary information by segment [Abstract]
Net sales	438,697	726,985
Product line cost of goods sold	222,649	378,799
Product line gross profit	216,048	348,186
Operating and Reportable Segments [Member] | Continuing Operations [Member] | Traditional [Member] | Loose Jewels [Member]
Summary information by segment [Abstract]
Net sales	3,072,909	3,407,092
Product line cost of goods sold	1,560,480	1,877,210
Product line gross profit	1,512,429	1,529,882
Segment Reconciling Items [Member] | Continuing Operations [Member]
Summary information by segment [Abstract]
Product line cost of goods sold	3,613,748	3,483,603
Segment Reconciling Items [Member] | Continuing Operations [Member] | Product Line Cost of Goods Sold [Member]
Summary information by segment [Abstract]
Product line cost of goods sold	3,104,803	3,234,149
Segment Reconciling Items [Member] | Continuing Operations [Member] | Non-Capitalized Manufacturing and Production Control Expenses [Member]
Summary information by segment [Abstract]
Product line cost of goods sold	346,604	298,858
Segment Reconciling Items [Member] | Continuing Operations [Member] | Freight Out [Member]
Summary information by segment [Abstract]
Product line cost of goods sold	99,119	100,016
Segment Reconciling Items [Member] | Continuing Operations [Member] | Inventory Valuation Allowances [Member]
Summary information by segment [Abstract]
Product line cost of goods sold	49,000	0
Segment Reconciling Items [Member] | Continuing Operations [Member] | Other Inventory Adjustments [Member]
Summary information by segment [Abstract]
Product line cost of goods sold	$ 14,222	$ (149,420)

SEGMENT INFORMATION AND GEOGR_4

SEGMENT INFORMATION AND GEOGRAPHIC DATA, Data by Geographic Area (Details) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Net sales [Abstract]
Net sales	$ 6,594,706	$ 6,208,808
Continuing Operations [Member]
Net sales [Abstract]
Net sales	6,594,706	6,208,808
Reportable Geographical Components [Member] | Continuing Operations [Member] | United States [Member]
Net sales [Abstract]
Net sales	5,822,870	5,750,825
Reportable Geographical Components [Member] | Continuing Operations [Member] | International [Member]
Net sales [Abstract]
Net sales	$ 771,836	$ 457,983

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
FAIR VALUE MEASUREMENTS [Abstract]
Asset impairment	$ 0	$ 0

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	Sep. 30, 2018	Jun. 30, 2018
Total inventories, net of reserves [Abstract]
Raw materials	$ 5,323,863	$ 5,083,436
Work-in-process	10,880,711	10,659,786
Finished goods	17,835,924	17,483,773
Finished goods on consignment	695,420	523,971
Total supplies inventory	38,509	45,572
Less: inventory reserves	(2,017,000)	(1,968,000)
Total inventory	32,757,427	31,828,538
Short-term portion	10,782,176	10,979,891
Long-term portion	21,975,251	20,848,647
Inventories issued to active production	2,620,000	2,450,000
Inventory of net jewelry	8,620,000	7,790,000
Inventory of net loose jewels	24,100,000	24,000,000
Inventory reserve for obsolescence	1,360,000	1,300,000
Lower of cost or market value	1,320,000	1,290,000
Carrying value of inventory reserve for obsolescence of finished jewelry	32,000	7,000
Inventory rework reserve for recut	434,000	534,000
Inventory reserve for recut	434,000	418,000
Inventory reserve for shrinkage of finished jewelry on repairs	0	116,000
Inventory reserve for shrinkage	228,000	136,000
Inventory reserve for shrinkage of loose jewels	68,000	48,000
Inventory reserve for shrinkage of finished jewelry	160,000	88,000
Shrinkage reserve for finished goods on consignment	14,000	18,000
Inventory reserve for shrinkage of loose jewels on consignment	8,000	11,000
Inventory reserve for shrinkage of finished jewelry on consignment	6,000	7,000
Finished Jewelry [Member]
Total inventories, net of reserves [Abstract]
Raw materials	776,223	595,649
Work-in-process	1,565,659	1,196,268
Finished goods	5,608,897	5,517,951
Finished goods on consignment	669,426	476,648
Total finished jewelry and loose jewels	8,620,205	7,786,516
Loose Jewels [Member]
Total inventories, net of reserves [Abstract]
Raw materials	4,547,640	4,487,787
Work-in-process	9,315,052	9,463,518
Finished goods	10,224,027	10,015,822
Finished goods on consignment	11,994	29,323
Total finished jewelry and loose jewels	$ 24,098,713	$ 23,996,450

RETURNS ASSET AND REFUND LIAB_2

RETURNS ASSET AND REFUND LIABILITIES (Details) - USD ($)	Sep. 30, 2018	Jun. 30, 2018
RETURNS ASSET AND REFUND LIABILITIES [Abstract]
Refund liabilities	$ 673,000	$ 648,000
Asset returns	$ 262,000	$ 250,000

ACCRUED EXPENSES AND OTHER LI_3

ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($)	Sep. 30, 2018	Jun. 30, 2018
ACCRUED EXPENSES AND OTHER LIABILITIES [Abstract]
Accrued compensation and related benefits	$ 503,249	$ 359,077
Deferred rent	143,736	139,558
Accrued cooperative advertising	86,881	60,784
Accrued sales tax	10,102	17,149
Other	43,838	42,377
Accrued expenses and other liabilities	$ 787,806	$ 618,945

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
INCOME TAXES [Abstract]
Income tax expense for estimated tax, penalties, and interest for other uncertain tax positions	$ 5,000	$ 5,000

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Purchase Commitment [Abstract]
Percentage committed to be purchased	100.00%
Period of exclusive supply agreement	2 years
Purchase commitment in initial new order	$ 52,950
Remaining purchase commitment	50,840
Actual purchases under purchase amendment	2,110	$ 2,490
Minimum [Member]
Purchase Commitment [Abstract]
Future minimum annual purchase commitments	9,000
Maximum [Member]
Purchase Commitment [Abstract]
Future minimum annual purchase commitments	$ 12,000

LINE OF CREDIT, White Oak Credi

LINE OF CREDIT, White Oak Credit Facility (Details) - White Oak Commercial Finance LLC [Member]	Jul. 13, 2020USD ($)	Jul. 13, 2019USD ($)	Sep. 30, 2018USD ($)Installment
Revolving Credit Facility [Member]
Line Of Credit Facility Disclosure [Abstract]
Revolving line of credit			$ 5,000,000
Line of credit maturity date			Jul. 13, 2021
Termination fee, first year			$ 100,000
Termination fee, second year			50,000
Termination fee, thereafter			0
Non-refundable origination fee			$ 125,000
Number of installments | Installment			3
Non-refundable origination fee, installment			$ 41,667
Interest rate in event of default in excess of standard rate			2.00%
Revolving Credit Facility [Member] | Maximum [Member]
Line Of Credit Facility Disclosure [Abstract]
Percentage of eligible inventory in net borrowing base			60.00%
Eligible inventory of precious metal jewelry components required for advances			$ 500,000
Indebtedness to be maintained in the event of default to avoid triggering of default terms			250,000
Revolving Credit Facility [Member] | Minimum [Member]
Line Of Credit Facility Disclosure [Abstract]
Excess availability covenant			$ 500,000
Debt instrument effective percentage			5.50%
Revolving Credit Facility [Member] | Forecast [Member]
Line Of Credit Facility Disclosure [Abstract]
Non-refundable origination fee, installment	$ 41,667	$ 41,667
Revolving Credit Facility [Member] | LIBOR [Member]
Line Of Credit Facility Disclosure [Abstract]
Debt instrument, term of variable rate			1 month
Line of credit, spread on variable rate			3.75%
Line of credit, description of variable rate basis			one-month LIBOR
Revolving Credit Facility [Member] | Floor Rate [Member]
Line Of Credit Facility Disclosure [Abstract]
Line of credit, spread on variable rate			1.25%
Non-Revolving Credit Facility [Member]
Line Of Credit Facility Disclosure [Abstract]
Revolving line of credit			$ 1,000,000
Non-Revolving Credit Facility [Member] | LIBOR [Member]
Line Of Credit Facility Disclosure [Abstract]
Line of credit, spread on variable rate			4.75%

LINE OF CREDIT, Wells Fargo Cre

LINE OF CREDIT, Wells Fargo Credit Facility (Details) - Wells Fargo [Member] - Line of Credit [Member] - USD ($)	3 Months Ended
	Mar. 31, 2018	Jun. 25, 2018
Credit Facility [Abstract]
Revolving line of credit	$ 10,000,000
Line of credit facility, sublimit for letter of credit	$ 1,000,000
Line of credit maturity date	Jun. 25, 2018
Percentage of facility fee	3.00%
Facility fee	$ 150,000
Line of credit facility, sublimit for advances	$ 5,000,000
Percentage of advances, guaranteed by bank	90.00%
Interest rate in event of default in excess of standard rate	3.00%
Number of business day within which guaranteed advances to be repaid	2 days
Credit facility outstanding		$ 0
Minimum [Member]
Credit Facility [Abstract]
Excess availability covenant	$ 1,000,000
Maximum [Member]
Credit Facility [Abstract]
Borrowers' demand deposit account to be maintained	3,000,000
Advances against inventory	3,000,000
Indebtedness to be maintained in the event of default to avoid triggering of default terms	$ 200,000
LIBOR [Member]
Credit Facility [Abstract]
Line of credit, description of variable rate basis	Wells Fargo’s three-month LIBOR rate
Debt instrument, term of variable rate	3 months
Line of credit, spread on variable rate	2.00%
Prime Rate [Member]
Credit Facility [Abstract]
Line of credit, description of variable rate basis	Wells Fargo’s Prime Rate
Line of credit, spread on variable rate	1.00%

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Stock-Based Compensation [Abstract]
Share-based compensation expense	$ 71,176	$ 119,103
Employee Stock Options [Member]
Stock-Based Compensation [Abstract]
Share-based compensation expense	58,172	93,631
Stock-based compensation capitalized as a cost of inventory	0	0
Restricted Stock Awards [Member]
Stock-Based Compensation [Abstract]
Share-based compensation expense	$ 13,004	$ 25,472

STOCK-BASED COMPENSATION, Stock

STOCK-BASED COMPENSATION, Stock Options (Details) - Stock Options [Member] - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018
Stock Option Activity [Roll Forward]
Outstanding, beginning balance (in shares)	2,388,169
Exercised (in shares)	(2,500)	0
Forfeited (in shares)	(12,500)
Expired (in shares)	(41,756)
Outstanding, ending balance (in shares)	2,331,413
Weighted Average Exercise Price [Roll Forward]
Outstanding, beginning balance (in dollars per share)	$ 1.46
Exercised (in dollars per share)	0.90
Forfeited (in dollars per share)	1.05
Expired (in dollars per share)	1.73
Outstanding, ending balance (in dollars per share)	$ 1.46
Options Outstanding [Abstract]
Balance as of end of period (in shares)	2,388,169		2,331,413
Weighted average remaining contractual life	7 years 2 months 26 days
Weighted average exercise price (in dollars per share)	$ 1.46		$ 1.46
Options Exercisable [Abstract]
Balance as of end of period (in shares)			1,901,506
Weighted average remaining contractual life	6 years 10 months 10 days
Weighted average exercise price (in dollars per share)			$ 1.53
Options Vested or Expected to Vest [Abstract]
Balance as of end of period (in shares)			2,227,628
Weighted average remaining contractual life	7 years 2 months 1 day
Weighted average exercise price (in dollars per share)			$ 1.47
Additional Disclosures [Abstract]
Granted (in shares)	0
Fair value of stock options vested	$ 22,000
Unrecognized stock-based compensation expense related to unvested awards			$ 196,000
Total compensation cost not yet recognized, period for recognition	25 months
Aggregate intrinsic value of stock options outstanding			7,000
Aggregate intrinsic value of stock options exercisable			7,000
Aggregate intrinsic value of stock options vested or expected to vest			$ 7,000
Aggregate intrinsic value of stock options exercised	$ 300

STOCK-BASED COMPENSATION, Restr

STOCK-BASED COMPENSATION, Restricted Stock (Details)	3 Months Ended
	Sep. 30, 2018USD ($)$ / sharesshares
Dividends [Abstract]
Cash dividends | $	$ 0
Restricted Stock [Member]
Restricted Stock Activity [Roll Forward]
Unvested, beginning balance (in shares)	264,000
Vested (in shares)	(24,896)
Canceled (in shares)	(109,604)
Unvested, ending balance (in shares)	129,500
Weighted Average Grant Date Fair Value [Roll Forward]
Unvested, beginning balance (in dollars per share) | $ / shares	$ 1.25
Vested (in dollars per share) | $ / shares	1.31
Canceled (in dollars per share) | $ / shares	1.31
Unvested, ending balance (in dollars per share) | $ / shares	$ 1.18
Additional Disclosures [Abstract]
Granted (in shares)	0
Unrecognized stock-based compensation expense related to unvested awards | $	$ 82,000
Total compensation cost not yet recognized, period for recognition	3 months

NET INCOME (LOSS) PER COMMON _3

NET INCOME (LOSS) PER COMMON SHARE (Details) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Numerator [Abstract]
Net income (loss)	$ 109,903	$ (174,539)
Weighted average common shares outstanding [Abstract]
Basic (in shares)	21,454,977	21,218,468
Stock options (in shares)	74,039	0
Restricted shares (in shares)	129,500	0
Diluted (in shares)	21,658,516	21,218,468
Net income (loss) per common share [Abstract]
Basic (in dollars per share)	$ 0.01	$ (0.01)
Diluted (in dollars per share)	$ 0.01	$ (0.01)
Stock Options [Member]
Antidilutive Securities [Abstract]
Shares excluded from the computation of diluted net loss per common share (in shares)	2,230,000	2,150,000
Restricted Shares [Member]
Antidilutive Securities [Abstract]
Shares excluded from the computation of diluted net loss per common share (in shares)	0	374,000

MAJOR CUSTOMERS AND CONCENTRA_3

MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK (Details) - USD ($)	3 Months Ended			6 Months Ended
	Sep. 30, 2018		Sep. 30, 2017	Jun. 30, 2018
Concentration of Credit Risk [Abstract]
Insurance coverage per depositor at each financial institution	$ 250,000
Interest-bearing amounts on deposit in excess of FDIC insurable limits	$ 1,720,000
Minimum [Member]
Concentration of Credit Risk [Abstract]
Period of customer payments on trade receivables	30 days
Maximum [Member]
Concentration of Credit Risk [Abstract]
Period of customer payments on trade receivables	120 days
Trade Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer A [Member]
Concentration of Credit Risk [Abstract]
Concentration risk, percentage	17.00%			10.00%
Trade Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer B [Member]
Concentration of Credit Risk [Abstract]
Concentration risk, percentage	17.00%			23.00%
Trade Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer C [Member]
Concentration of Credit Risk [Abstract]
Concentration risk, percentage	11.00%				[1]
Trade Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer D [Member]
Concentration of Credit Risk [Abstract]
Concentration risk, percentage	11.00%				[1]
Trade Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer E [Member]
Concentration of Credit Risk [Abstract]
Concentration risk, percentage	10.00%				[1]
Total Gross Sales [Member] | Customer Concentration Risk [Member] | Customer A [Member]
Concentration of Credit Risk [Abstract]
Concentration risk, percentage		[2]	11.00%
Total Gross Sales [Member] | Customer Concentration Risk [Member] | Customer B [Member]
Concentration of Credit Risk [Abstract]
Concentration risk, percentage	14.00%		23.00%
Total Gross Sales [Member] | Customer Concentration Risk [Member] | Customer C [Member]
Concentration of Credit Risk [Abstract]
Concentration risk, percentage	10.00%		10.00%
[1]	Customer C, Customer D, and Customer E did not have individual balances that represented 10% or more of the total gross accounts receivable as of June 30, 2018.
[2]	Customer A did not have net sales that represented 10% or more of total net sales for the three months ended September 30, 2018.