Charles & Colvard (CTHR) 10-Q 8 Nov 19 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2019	Nov. 01, 2019
Cover [Abstract]
Entity Registrant Name	CHARLES & COLVARD LTD
Entity Central Index Key	0001015155
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		28,981,910
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Entity Address, State or Province	NC

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($)	Sep. 30, 2019	Jun. 30, 2019
Current assets:
Cash and cash equivalents	$ 12,243,719	$ 12,465,483
Restricted cash	356,191	541,062
Accounts receivable, net	2,000,613	1,962,471
Inventory, net	11,787,226	11,909,792
Prepaid expenses and other assets	1,408,993	989,559
Total current assets	27,796,742	27,868,367
Long-term assets:
Inventory, net	24,178,349	21,823,928
Property and equipment, net	1,013,308	1,026,098
Intangible assets, net	101,165	97,373
Operating lease right-of-use assets	883,832	0
Other assets	328,328	330,615
Total long-term assets	26,504,982	23,278,014
TOTAL ASSETS	54,301,724	51,146,381
Current liabilities:
Accounts payable	4,563,460	3,372,172
Operating lease liabilities	609,988	0
Accrued expenses and other liabilities	926,118	1,325,608
Total current liabilities	6,099,566	4,697,780
Long-term liabilities:
Noncurrent operating lease liabilities	632,038	0
Deferred rent	0	236,745
Accrued income taxes	498,917	492,832
Total long-term liabilities	1,130,955	729,577
Total liabilities	7,230,521	5,427,357
Commitments and contingencies (Note 9)
Shareholders' equity:
Common stock, no par value; 50,000,000 shares authorized; 28,981,910 and 28,027,569 shares issued and outstanding at September 30, 2019 and June 30, 2019, respectively	54,342,864	54,342,864
Additional paid-in capital	25,633,007	24,488,147
Accumulated deficit	(32,904,668)	(33,111,987)
Total shareholders' equity	47,071,203	45,719,024
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 54,301,724	$ 51,146,381

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares	Sep. 30, 2019	Jun. 30, 2019
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)	28,981,910	28,027,569
Common stock, shares outstanding (in shares)	28,981,910	28,027,569

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) [Abstract]
Net sales	$ 7,608,421	$ 6,594,706
Costs and expenses:
Cost of goods sold	3,876,624	3,613,748
Sales and marketing	2,229,591	1,641,125
General and administrative	1,349,501	1,224,775
Total costs and expenses	7,455,716	6,479,648
Income from operations	152,705	115,058
Other income (expense):
Interest income	61,379	0
Interest expense	(142)	(346)
Loss on foreign currency exchange	(538)	(29)
Other expense	0	(13)
Total other income (expense), net	60,699	(388)
Income before income taxes	213,404	114,670
Income tax expense	(6,085)	(4,767)
Net Income	$ 207,319	$ 109,903
Net income 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 per common share:
Basic (in shares)	28,563,688	21,454,977
Diluted (in shares)	29,222,936	21,658,516

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Jun. 30, 2018	$ 54,243,816	$ 14,962,071	$ (35,387,454)	$ 33,818,433
Balance (in shares) at Jun. 30, 2018	21,705,173
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	$ 0	71,176	0	71,176
Retirement of restricted stock	$ 0	0	0	0
Retirement of restricted stock (in shares)	(109,604)
Stock option exercises	$ 3,480	(1,229)	0	2,251
Stock option exercises (in shares)	2,500
Net income	$ 0	0	109,903	109,903
Balance at Sep. 30, 2018	$ 54,247,296	15,032,018	(35,277,551)	34,001,763
Balance (in shares) at Sep. 30, 2018	21,598,069
Balance at Jun. 30, 2019	$ 54,342,864	24,488,147	(33,111,987)	45,719,024
Balance (in shares) at Jun. 30, 2019	28,027,569
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, , net of offering costs	$ 0	932,480	0	932,480
Issuance of common stock, , net of offering costs (in shares)	630,500
Stock-based compensation	$ 0	212,380	0	212,380
Issuance of restricted stock	$ 0	0	0	0
Issuance of restricted stock (in shares)	325,000
Retirement of restricted stock	$ 0	0	0	0
Retirement of restricted stock (in shares)	(1,159)
Net income	$ 0	0	207,319	207,319
Balance at Sep. 30, 2019	$ 54,342,864	$ 25,633,007	$ (32,904,668)	$ 47,071,203
Balance (in shares) at Sep. 30, 2019	28,981,910

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 207,319	$ 109,903
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	124,637	108,216
Stock-based compensation	212,380	71,176
Recovery of uncollectible accounts	(28,000)	(312)
(Recovery of) Provision for sales returns	(31,000)	25,000
Provision for inventory reserves	23,000	49,000
Provision for (Recovery of) accounts receivable discounts	12,476	(2,936)
Changes in operating assets and liabilities:
Accounts receivable	8,382	(342,076)
Inventory	(2,254,855)	(977,889)
Prepaid expenses and other assets, net	(417,147)	(70,494)
Accounts payable	1,191,288	(77,942)
Deferred rent	0	(38,719)
Accrued income taxes	6,085	4,767
Accrued expenses and other liabilities	(278,041)	168,861
Net cash used in operating activities	(1,223,476)	(973,445)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(111,317)	(164,099)
Payments for intangible assets	(4,322)	(38,111)
Net cash used in investing activities	(115,639)	(202,210)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock, net of offering costs	932,480	0
Proceeds from stock option exercises	0	2,251
Net cash provided by financing activities	932,480	2,251
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(406,635)	(1,173,404)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD	13,006,545	3,393,186
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD	12,599,910	2,219,782
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	142	346
Cash paid during the period for income taxes	$ 2,050	$ 4,748

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	3 Months Ended
	Sep. 30, 2019
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, 2019
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, 2019 and 2018 included in this Quarterly Report on Form 10-Q are unaudited. The balance sheet as of June 30, 2019 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 Annual Report on Form 10-K (the “2019 Annual Report”) for the fiscal year ended June 30, 2019 filed with the SEC on September 6, 2019. The accompanying condensed consolidated financial statements as of and for the three months ended September 30, 2019 and 2018, and as of June 30, 2019, include the accounts of the Company and its wholly owned subsidiaries charlesandcolvard.com, LLC; Charles & Colvard Direct, LLC; 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, 2019 or 2018. Charles & Colvard (HK) Ltd. previously became dormant in the second quarter of 2009 and has had no operating activity since 2008. All intercompany accounts have been eliminated. Significant Accounting Policies Use of Estimates 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, 2019 June 30, 2019 Cash and cash equivalents $ 12,243,719 $ 12,465,483 Restricted cash 356,191 541,062 Total cash, cash equivalents, and restricted cash $ 12,599,910 $ 13,006,545 Recently Adopted/Issued Accounting Pronouncements – The new standard provides a number of practical expedients for transition and policy elections for ongoing accounting. The Company elected the “package of practical expedients”, which permits the Company to not reassess its prior conclusions about lease identification, lease classification, and initial direct costs. The standard provides policy election options for recognition exemption for short-term leases and separation of lease and non-lease components. The Company elected the “short-term lease recognition” exemption and elected not to separate lease and non-lease components for all underlying asset classes. The Company determines lease and non-lease components based on observable information, including terms provided by the lessor. The adoption of the new accounting standard resulted in the recognition of ROU assets and lease liabilities of approximately $983,000 and $1.38 million, respectively, for operating leases as of July 1, 2019. Currently, the Company has no other material leases that qualify as finance, variable, or short-term leases. The adoption did not have a material impact on the Company’s condensed consolidated statement of operations or condensed consolidated statement of cash flows. Subsequent to the date of adoption, the Company determines if a contract is or contains a lease at inception of the agreement. Operating leases are recognized as ROU assets and the related obligations are recognized as current or noncurrent liabilities on the Company’s consolidated balance sheet. Leases with an initial lease term of one year or less are not recorded on the balance sheet. ROU assets, which represent the Company’s right to use an underlying asset, and lease liabilities, which represent the Company’s obligation to make lease payments arising from the lease, are recognized based on the present value of the future lease payments over the lease term at the commencement date. The ROU asset also includes any lease payments made at or before the commencement date and any initial direct costs incurred and excludes lease incentives. Certain of the Company’s leases contain renewal and/or termination options. The Company recognizes renewal or termination options as part of its ROU assets and lease liabilities when the Company has the unilateral right to renew or terminate and it is reasonably certain these options will be exercised. The Company determines the present value of lease payments based on the implicit rate, which may be explicitly stated in the lease if available or the Company’s estimated collateralized incremental borrowing rate based on the term of the lease. For operating leases, lease expense is recognized on a straight-line basis over the lease term. Some leases could require the Company to pay non-lease components, which may include taxes, maintenance, insurance and certain other expenses applicable to the leased property, and are primarily considered variable costs. When applicable, such costs are expensed as incurred. For additional information regarding the Company’s accounting for lease arrangements, see Note 9, “Commitments and Contingencies.” In August 2018, the Financial Accounting Standards Board issued additional guidance in connection with accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. The updated guidance is effective for fiscal years beginning after December 15, 2019. The Company is in the process of conducting its analysis, but currently believes the effect 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, 2019
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 retail, and other pure-play, exclusively e-commerce outlets; and its “Traditional” segment, which consists of wholesale and retail 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 2019 Annual 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. 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, leases, 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 between its Online Channels segment and its Traditional segment based on net sales and number of employees to arrive at segment operating income. Unallocated expenses remain in its Traditional segment. Summary financial information by reportable segment is as follows: Three Months Ended September 30, 2019 Online Channels Traditional Total Net sales Finished jewelry $ 2,977,348 $ 880,647 $ 3,857,995 Loose jewels 728,282 3,022,144 3,750,426 Total $ 3,705,630 $ 3,902,791 $ 7,608,421 Product line cost of goods sold Finished jewelry $ 1,212,873 $ 490,037 $ 1,702,910 Loose jewels 265,194 1,534,258 1,799,452 Total $ 1,478,067 $ 2,024,295 $ 3,502,362 Product line gross profit Finished jewelry $ 1,764,475 $ 390,610 $ 2,155,085 Loose jewels 463,088 1,487,886 1,950,974 Total $ 2,227,563 $ 1,878,496 $ 4,106,059 Operating income $ 45,665 $ 107,040 $ 152,705 Depreciation and amortization $ 49,250 $ 75,387 $ 124,637 Capital expenditures $ 73,725 $ 37,592 $ 111,317 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 The Company does not allocate any assets to the reportable segments, and, therefore, no asset information is reported to the chief operating decision maker or 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, 2019 2018 Product line cost of goods sold $ 3,502,362 $ 3,104,803 Non-capitalized manufacturing and production control expenses 389,877 346,604 Freight out 131,119 99,119 Inventory valuation allowances 23,000 49,000 Other inventory adjustments (169,734 ) 14,222 Cost of goods sold $ 3,876,624 $ 3,613,748 The Company recognizes sales by geographic area based on the country in which the customer is based. Sales to international end consumers made through the Company's transactional website, charlesandcolvard.com, are included in international sales for financial reporting purposes. During periods prior to the quarter ended December 31, 2018, sales to international end consumers made through charlesandcolvard.com were included in U.S. sales because during those prior periods products were shipped and invoiced to a U.S.-based intermediary that assumed all international shipping and credit risks. Currently, sales to international end consumers are made directly by the Company's own transactional website. The following presents net sales data by geographic area: Three Months Ended September 30, 2019 2018 Net sales: United States $ 6,763,876 $ 5,822,870 International 844,545 771,836 Total $ 7,608,421 $ 6,594,706

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Sep. 30, 2019
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. 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, 2019 and 2018, no impairment was recorded.

INVENTORIES

INVENTORIES	3 Months Ended
	Sep. 30, 2019
INVENTORIES [Abstract]
INVENTORIES	5. INVENTORIES The Company’s total inventories, net of reserves, consisted of the following as of the dates presented: September 30, 2019 June 30, 2019 Raw materials $ 4,351,565 $ 4,450,478 Work-in-process 12,266,806 10,871,823 Finished goods 18,639,550 18,557,224 Finished goods on consignment 2,963,009 2,086,084 Supplies inventory 128,645 129,111 Less: inventory reserves (2,384,000 ) (2,361,000 ) Total $ 35,965,575 $ 33,733,720 Short-term portion $ 11,787,226 $ 11,909,792 Long-term portion 24,178,349 21,823,928 Total $ 35,965,575 $ 33,733,720 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, 2019 and June 30, 2019, work-in-process inventories issued to active production jobs approximated $1.95 million and $1.23 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, and product obsolescence is closely monitored and reviewed by management as of and for each financial reporting period. 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. 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 that tend not to be 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 subsidiary carries 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, 2019 June 30, 2019 Finished jewelry: Raw materials $ 772,119 $ 643,797 Work-in-process 1,089,875 487,680 Finished goods 6,810,280 6,332,533 Finished goods on consignment 2,700,443 1,867,549 Total finished jewelry $ 11,372,717 $ 9,331,559 Loose jewels: Raw materials $ 3,579,446 $ 3,806,681 Work-in-process 11,176,931 10,384,143 Finished goods 9,459,270 9,878,691 Finished goods on consignment 248,566 203,535 Total loose jewels 24,464,213 24,273,050 Total supplies inventory 128,645 129,111 Total inventory $ 35,965,575 $ 33,733,720 Total net finished jewelry inventories at September 30, 2019 and June 30, 2019, including inventory on consignment net of reserves and finished jewelry featuring moissanite manufactured by the Company, were $11.37 million and $9.33 million, respectively. Total net loose jewel inventories at September 30, 2019 and June 30, 2019, including inventory on consignment net of reserves, were $24.46 million and $24.27 million, respectively. As of September 30, 2019 and June 30, 2019, management established an obsolescence reserve of $1.82 million and $1.79 million, respectively. Typically, in the jewelry industry, slow-moving or discontinued lines are sold as closeouts or liquidated in sales channels. Regularly, management reviews the legacy loose jewel inventory for any lower of cost or net realizable value and obsolescence issues. Accordingly, as of September 30, 2019 and June 30, 2019, 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 $67,000 and $19,000, respectively, for the carrying costs in excess of any estimated scrap values. Likewise, with respect to the Company’s loose jewels inventory, based on current period demand, and ongoing feedback from distribution 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, during the three months ended September 30, 2019, based on quantity and volume changes, the Company maintained a lower of cost or net realizable value reserve on this remaining inventory of approximately $1.75 million as of September 30, 2019 from $1.77 million as of June 30, 2019. As of September 30, 2019 and June 30, 2019 management established a rework reserve for recut and repairs of loose jewel inventories of $418,000 and $460,000, respectively. As of September 30, 2019 and June 30, 2019 management established a shrinkage reserve of $144,000 and $112,000, respectively. The finished jewelry inventories at September 30, 2019 and June 30, 2019 include shrinkage reserves of $108,000 and $105,000, respectively. The loose jewel inventories at September 30, 2019 and June 30, 2019 include shrinkage reserves of $36,000 and $7,000, 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 $15,000 as of September 30, 2019 and June 30, 2019, respectively, to allow for certain finished jewelry and loose jewels 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. Finished jewelry inventories on consignment at September 30, 2019 and June 30, 2019 include shrinkage reserves of $12,000 and $14,000, respectively. The loose jewel inventories on consignment at September 30, 2019 and June 30, 2019 include shrinkage reserves of $2,000 and $1,000, 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, 2019
RETURNS ASSET AND REFUND LIABILITIES [Abstract]
RETURNS ASSET AND REFUND LIABILITIES	6. RETURNS ASSET AND REFUND LIABILITIES In connection with its revenue recognition accounting policy, the Company provides for 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, 2019 and June 30, 2019, the Company’s refund liabilities balances were $715,000 and $746,000, respectively, and are included as allowances for sales returns within accounts receivable, net, in the accompanying condensed consolidated balance sheets. As of September 30, 2019 and June 30, 2019, the Company’s returns asset balances were $308,000 and $279,000, respectively, and are included within prepaid expenses and other assets in the accompanying condensed consolidated balance sheets.

ACCRUED EXPENSES AND OTHER LIAB

ACCRUED EXPENSES AND OTHER LIABILITIES	3 Months Ended
	Sep. 30, 2019
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, 2019 June 30, 2019 Accrued compensation and related benefits $ 511,484 $ 760,324 Accrued sales tax 190,933 286,864 Deferred rent - 156,306 Accrued cooperative advertising 166,821 73,033 Other 56,880 49,081 Total accrued expenses and other liabilities $ 926,118 $ 1,325,608

INCOME TAXES

INCOME TAXES	3 Months Ended
	Sep. 30, 2019
INCOME TAXES [Abstract]
INCOME TAXES	8. INCOME TAXES As of June 30, 2018, the Company recognized its expected underlying tax benefit relating to the realization of the recoverable portion of its alternative minimum tax (“AMT”)-related deferred tax credit carryforwards, net of an expected sequestration reduction. However, on January 14, 2019, the Internal Revenue Service (the “IRS”) announced that refund payments and refund offset transactions due to refundable minimum tax credits associated with the repeal of corporate AMT as part of the Tax Cuts and Jobs Act enacted in December 2017 (the “Tax Act”) would not be subject to sequestration. Accordingly, following the IRS’s announcement that AMT credit refunds would not be subject to the government sequestration amount, in January 2019 the Company recognized the additional available underlying tax benefit and recorded the sequestered portion of its AMT credit refund in the amount of approximately $23,000. The Company recorded this additional AMT credit refund as a receivable and such amount is included in other long-term assets in the accompanying condensed consolidated balance sheets. The Company recognized an income tax net expense for estimated tax, penalties, and interest associated with uncertain tax positions of approximately $6,000 and $5,000 for the three months ended September 30, 2019 and 2018, respectively. As of each reporting date, the Company’s 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, 2019 and June 30, 2019, 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, the Company continued to maintain a full valuation allowance against its deferred tax assets as of September 30, 2019 and June 30, 2019.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Sep. 30, 2019
COMMITMENTS AND CONTINGENCIES [Abstract]
COMMITMENTS AND CONTINGENCIES	9. COMMITMENTS AND CONTINGENCIES Lease Arrangements On December 9, 2013, the Company entered into a Lease Agreement, as amended on December 23, 2013 and April 15, 2014 (the “Lease Agreement”), for its corporate headquarters, which occupies approximately 36,350 square feet of office, storage and light manufacturing space and is classified as an operating lease for financial reporting purposes. The base term of the Lease Agreement expires on October 31, 2022 and the terms of the Lease Agreement contain no early termination provisions. Provided there is no outstanding uncured event of default under the Lease Agreement, the Company has two options to extend the lease term for a period of five years under each option. The Company’s option to extend the term of the Lease Agreement must be exercised in writing on or before 270 days prior to expiration of the then-current term. If the options are exercised, the monthly minimum rent for each of the extended terms will be adjusted to the then prevailing fair market rate. The Company took possession of the leased property on May 23, 2014, once certain improvements to the leased space were completed and did not have access to the property before this date. These improvements and other lease related incentives offered by the landlord totaled approximately $623,000, of which approximately $393,000 was unamortized as of July 1, 2019, the effective date upon which the Company adopted the new lease accounting standard as described in more detail in Note 2, “Basis of Presentation and Significant Accounting Policies.” The Company has no other material operating leases and is not party to leases that would qualify for classification as a finance lease, variable lease or short-term lease. As of September 30, 2019, the Company’s balance sheet classifications of its leases are as follows: Operating Leases: Noncurrent operating lease ROU assets $ 883,832 Current operating lease liabilities $ 609,988 Noncurrent operating lease liabilities 632,038 Total operating lease liabilities $ 1,242,026 The Company’s total operating lease cost for the three months ended September 30, 2019 was approximately $137,000. The Company’s total rent expense for the three month-period ended September 30, 2018 was $134,000. As of September 30, 2019, the Company’s estimated incremental borrowing rate used and assumed discount rate with respect to operating leases was 7.14% and the remaining operating lease term was 2.08 years. As of September 30, 2019, the Company’s remaining future payments under operating leases for each fiscal year ending June 30 are as follows: 2020 $ 469,699 2021 642,997 2022 219,723 Total lease payments 1,332,419 Less: imputed interest 90,393 Present value of lease payments 1,242,026 Less: current lease obligations 609,988 Total long-term lease obligations $ 632,038 The Company makes cash payments for amounts included in the measurement of its lease liabilities. During the three months ended September 30, 2019, cash paid for operating leases was approximately $164,000 and there were no new ROU assets obtained in exchange for new operating lease liabilities. Lease Disclosures for the fiscal year ended June 30, 2019, as reported The Company recognized rent expense on a straight-line basis, having given consideration to the rent holidays and escalations, the lease signing and moving allowance paid to the Company, and the rent abatement. The Company’s total rent expense for operating leases was approximately $528,000 for the fiscal year ended June 30, 2019. The Company also had future minimum payments as of June 30, 2019 under its operating leases for each fiscal year ending June 30 that were as follows: 2020 $ 625,788 2021 642,997 2022 219,723 Total $ 1,488,508 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 $41.49 remains to be purchased as of September 30, 2019. 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, 2019, the Company purchased approximately $2.49 million of SiC crystals from Cree pursuant to the terms of the Supply Agreement, as amended. During the three months ended September 30, 2018, the Company purchased approximately $2.11 million of SiC crystals from Cree.

LINE OF CREDIT

LINE OF CREDIT	3 Months Ended
	Sep. 30, 2019
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. 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. 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 may be either revolving or non-revolving. As of September 30, 2019, the Company had not borrowed against the White Oak Credit Facility.

SHAREHOLDERS' EQUITY AND STOCK-

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION	3 Months Ended
	Sep. 30, 2019
SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION [Abstract]
SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION	11. SHAREHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION Shelf Registration Statement The Company has an effective shelf registration statement on Form S-3 on file with the SEC which allows it to periodically offer and sell, individually or in any combination, shares of common stock, shares of preferred stock, warrants to purchase shares of common stock or preferred stock, and units consisting of any combination of the foregoing types of securities, up to a total of $25.00 million, of which approximately $13.99 million remains available after giving effect to the Company’s June 2019 public offering, including the impact of the partial exercise of the underwriters’ over-allotment option, as described below. The Company’s ability to issue equity securities under its effective shelf registration statement is subject to market conditions. On June 11, 2019, the Company completed an underwritten public offering of 6,250,000 newly issued shares of common stock, at a price to the public of $1.60 per share, pursuant to its effective shelf registration statement on Form S-3. Net proceeds from the offering were approximately $9.06 million, net of the underwriting discount and fees and expenses in the amount of approximately $941,000. Pursuant to the terms of the underwriting agreement entered in connection with this offering, the underwriters were granted a 30-day option to buy up to an additional 937,500 shares of the Company’s common stock to cover over-allotments. Pursuant to the partial exercise of the underwriters’ over-allotment option, o issued an additional 630,500 shares of its common stock . After giving effect to the partial exercise of the over-allotment option, the Company sold an aggregate of 6,880,500 shares of its common stock at a price of $1.60 per share with total gross proceeds of approximately $11.01 million, before deducting the total underwriting discount and fees and expenses of approximately $1.02 million. Stock-Based Compensation The following table summarizes the components of the Company’s stock-based compensation included in net income for the periods presented: Three Months Ended September 30, 2019 2018 Employee stock options $ 63,876 $ 58,172 Restricted stock awards 148,504 13,004 Totals $ 212,380 $ 71,176 No stock-based compensation was capitalized as a cost of inventory during the three months ended September 30, 2019 or 2018. Stock Options – Shares Weighted Average Exercise Price Outstanding, June 30, 2019 2,523,638 $ 1.41 Granted 70,000 $ 1.33 Expired (15,600 ) $ 0.46 Outstanding, September 30, 2019 2,578,038 $ 1.41 The total fair value of stock options that vested during the three months ended September 30, 2019 was approximately $26,132. The following table summarizes information about stock options outstanding at September 30, 2019: Options Outstanding Options Exercisable Options Vested or Expected to Vest Balance as of 9/30/2019 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Balance as of 9/30/2019 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Balance as of 9/30/2019 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price 2,578,038 6.82 $ 1.41 2,081,763 6.35 $ 1.49 2,497,408 6.75 $ 1.42 As of September 30, 2019, the unrecognized stock-based compensation expense related to unvested stock options was approximately $146,000, which is expected to be recognized over a weighted average period of approximately 23 months. The aggregate intrinsic value of stock options outstanding, exercisable, and vested or expected to vest at September 30, 2019 was approximately $1.09 million. This amount is before applicable income taxes and represents the closing market price of the Company’s common stock at June 30, 2019 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. No stock options were exercised during the three months ended September 30, 2019. During the three months ended September 30, 2018, the aggregate intrinsic value of stock options exercised was approximately $300. Restricted Stock – Shares Weighted Average Grant Date Fair Value Unvested, June 30, 2019 129,500 $ 1.07 Granted 325,000 $ 1.57 Vested (128,341 ) $ 1.07 Canceled (1,159 ) $ 1.07 Unvested, September 30, 2019 325,000 $ 1.57 The unvested restricted shares as of September 30, 2019 are all performance-based restricted shares that are scheduled to vest, subject to achievement of the underlying performance goals, in July 2020. As of September 30, 2019, the estimated unrecognized stock-based compensation expense related to unvested restricted shares subject to achievement of performance goals was approximately $420,000, all of which is expected to be recognized over a weighted average period of approximately nine months. Dividends

NET INCOME PER COMMON SHARE

NET INCOME PER COMMON SHARE	3 Months Ended
	Sep. 30, 2019
NET INCOME PER COMMON SHARE [Abstract]
NET INCOME PER COMMON SHARE	12. NET INCOME PER COMMON SHARE Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the periods. Diluted net income 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. Anti-dilutive stock awards consist of stock options that would have been anti-dilutive in the application of the treasury stock method. The following table reconciles the differences between the basic and diluted net income per share presentations: Three Months Ended September 30, 2019 2018 Numerator: Net income $ 207,319 $ 109,903 Denominator: Weighted average common shares outstanding: Basic 28,563,688 21,454,977 Effect of dilutive securities 659,248 203,539 Diluted 29,222,936 21,658,516 Net income per common share: Basic $ 0.01 $ 0.01 Diluted $ 0.01 $ 0.01 For the three months ended September 30, 2019 and 2018, stock options to purchase approximately 1.99 and 2.23 million shares, respectively, were excluded from the computation of diluted net income per common share because the exercise price of the stock options was greater than the average market price of the common shares.

MAJOR CUSTOMERS AND CONCENTRATI

MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK	3 Months Ended
	Sep. 30, 2019
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. There were no non-interest-bearing amounts on deposit in excess of FDIC insurable limits at September 30, 2019. Interest-bearing amounts on deposit in excess of FDIC insurable limits at September 30, 2019 approximated $11.87 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 90 days, . 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. 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 as of the dates presented: September 30, 2019 June 30, 2019 Customer A 20 % 25 % Customer B 19 % 13 % Customer C * % 15 % * Customer C did not have individual balances that represented 10% or more of total gross accounts receivable as of September 30, 2019. 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 for the periods presented: Three Months Ended September 30, 2019 2018 Customer A 13 % 14 % Customer B 14 % ** % Customer D * % 10 % * Customer D did not have net sales that represented 10% or more of total net sales for the three months ended September 30, 2019. ** Customer B 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, 2019
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, 2019 and 2018 included in this Quarterly Report on Form 10-Q are unaudited. The balance sheet as of June 30, 2019 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 Annual Report on Form 10-K (the “2019 Annual Report”) for the fiscal year ended June 30, 2019 filed with the SEC on September 6, 2019. The accompanying condensed consolidated financial statements as of and for the three months ended September 30, 2019 and 2018, and as of June 30, 2019, include the accounts of the Company and its wholly owned subsidiaries charlesandcolvard.com, LLC; Charles & Colvard Direct, LLC; 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, 2019 or 2018. Charles & Colvard (HK) Ltd. previously became dormant in the second quarter of 2009 and has had no operating activity since 2008. All intercompany accounts have been eliminated.
Significant Accounting Policies	Significant Accounting Policies
Use of Estimates	Use of Estimates
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, 2019 June 30, 2019 Cash and cash equivalents $ 12,243,719 $ 12,465,483 Restricted cash 356,191 541,062 Total cash, cash equivalents, and restricted cash $ 12,599,910 $ 13,006,545
Recently Adopted/Issued Accounting Pronouncements	Recently Adopted/Issued Accounting Pronouncements – The new standard provides a number of practical expedients for transition and policy elections for ongoing accounting. The Company elected the “package of practical expedients”, which permits the Company to not reassess its prior conclusions about lease identification, lease classification, and initial direct costs. The standard provides policy election options for recognition exemption for short-term leases and separation of lease and non-lease components. The Company elected the “short-term lease recognition” exemption and elected not to separate lease and non-lease components for all underlying asset classes. The Company determines lease and non-lease components based on observable information, including terms provided by the lessor. The adoption of the new accounting standard resulted in the recognition of ROU assets and lease liabilities of approximately $983,000 and $1.38 million, respectively, for operating leases as of July 1, 2019. Currently, the Company has no other material leases that qualify as finance, variable, or short-term leases. The adoption did not have a material impact on the Company’s condensed consolidated statement of operations or condensed consolidated statement of cash flows. Subsequent to the date of adoption, the Company determines if a contract is or contains a lease at inception of the agreement. Operating leases are recognized as ROU assets and the related obligations are recognized as current or noncurrent liabilities on the Company’s consolidated balance sheet. Leases with an initial lease term of one year or less are not recorded on the balance sheet. ROU assets, which represent the Company’s right to use an underlying asset, and lease liabilities, which represent the Company’s obligation to make lease payments arising from the lease, are recognized based on the present value of the future lease payments over the lease term at the commencement date. The ROU asset also includes any lease payments made at or before the commencement date and any initial direct costs incurred and excludes lease incentives. Certain of the Company’s leases contain renewal and/or termination options. The Company recognizes renewal or termination options as part of its ROU assets and lease liabilities when the Company has the unilateral right to renew or terminate and it is reasonably certain these options will be exercised. The Company determines the present value of lease payments based on the implicit rate, which may be explicitly stated in the lease if available or the Company’s estimated collateralized incremental borrowing rate based on the term of the lease. For operating leases, lease expense is recognized on a straight-line basis over the lease term. Some leases could require the Company to pay non-lease components, which may include taxes, maintenance, insurance and certain other expenses applicable to the leased property, and are primarily considered variable costs. When applicable, such costs are expensed as incurred. For additional information regarding the Company’s accounting for lease arrangements, see Note 9, “Commitments and Contingencies.” In August 2018, the Financial Accounting Standards Board issued additional guidance in connection with accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. The updated guidance is effective for fiscal years beginning after December 15, 2019. The Company is in the process of conducting its analysis, but currently believes the effect 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, 2019
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, 2019 June 30, 2019 Cash and cash equivalents $ 12,243,719 $ 12,465,483 Restricted cash 356,191 541,062 Total cash, cash equivalents, and restricted cash $ 12,599,910 $ 13,006,545

SEGMENT INFORMATION AND GEOGR_2

SEGMENT INFORMATION AND GEOGRAPHIC DATA (Tables)	3 Months Ended
	Sep. 30, 2019
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, 2019 Online Channels Traditional Total Net sales Finished jewelry $ 2,977,348 $ 880,647 $ 3,857,995 Loose jewels 728,282 3,022,144 3,750,426 Total $ 3,705,630 $ 3,902,791 $ 7,608,421 Product line cost of goods sold Finished jewelry $ 1,212,873 $ 490,037 $ 1,702,910 Loose jewels 265,194 1,534,258 1,799,452 Total $ 1,478,067 $ 2,024,295 $ 3,502,362 Product line gross profit Finished jewelry $ 1,764,475 $ 390,610 $ 2,155,085 Loose jewels 463,088 1,487,886 1,950,974 Total $ 2,227,563 $ 1,878,496 $ 4,106,059 Operating income $ 45,665 $ 107,040 $ 152,705 Depreciation and amortization $ 49,250 $ 75,387 $ 124,637 Capital expenditures $ 73,725 $ 37,592 $ 111,317 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
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, 2019 2018 Product line cost of goods sold $ 3,502,362 $ 3,104,803 Non-capitalized manufacturing and production control expenses 389,877 346,604 Freight out 131,119 99,119 Inventory valuation allowances 23,000 49,000 Other inventory adjustments (169,734 ) 14,222 Cost of goods sold $ 3,876,624 $ 3,613,748
Net Sales Data by Geographic Area	The following presents net sales data by geographic area: Three Months Ended September 30, 2019 2018 Net sales: United States $ 6,763,876 $ 5,822,870 International 844,545 771,836 Total $ 7,608,421 $ 6,594,706

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Sep. 30, 2019
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, 2019 June 30, 2019 Raw materials $ 4,351,565 $ 4,450,478 Work-in-process 12,266,806 10,871,823 Finished goods 18,639,550 18,557,224 Finished goods on consignment 2,963,009 2,086,084 Supplies inventory 128,645 129,111 Less: inventory reserves (2,384,000 ) (2,361,000 ) Total $ 35,965,575 $ 33,733,720 Short-term portion $ 11,787,226 $ 11,909,792 Long-term portion 24,178,349 21,823,928 Total $ 35,965,575 $ 33,733,720
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, 2019 June 30, 2019 Finished jewelry: Raw materials $ 772,119 $ 643,797 Work-in-process 1,089,875 487,680 Finished goods 6,810,280 6,332,533 Finished goods on consignment 2,700,443 1,867,549 Total finished jewelry $ 11,372,717 $ 9,331,559 Loose jewels: Raw materials $ 3,579,446 $ 3,806,681 Work-in-process 11,176,931 10,384,143 Finished goods 9,459,270 9,878,691 Finished goods on consignment 248,566 203,535 Total loose jewels 24,464,213 24,273,050 Total supplies inventory 128,645 129,111 Total inventory $ 35,965,575 $ 33,733,720

ACCRUED EXPENSES AND OTHER LI_2

ACCRUED EXPENSES AND OTHER LIABILITIES (Tables)	3 Months Ended
	Sep. 30, 2019
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, 2019 June 30, 2019 Accrued compensation and related benefits $ 511,484 $ 760,324 Accrued sales tax 190,933 286,864 Deferred rent - 156,306 Accrued cooperative advertising 166,821 73,033 Other 56,880 49,081 Total accrued expenses and other liabilities $ 926,118 $ 1,325,608

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Sep. 30, 2019
COMMITMENTS AND CONTINGENCIES [Abstract]
Balance Sheet Classifications of Leases	As of September 30, 2019, the Company’s balance sheet classifications of its leases are as follows: Operating Leases: Noncurrent operating lease ROU assets $ 883,832 Current operating lease liabilities $ 609,988 Noncurrent operating lease liabilities 632,038 Total operating lease liabilities $ 1,242,026
Remaining Future Payments Under Operating Leases	As of September 30, 2019, the Company’s remaining future payments under operating leases for each fiscal year ending June 30 are as follows: 2020 $ 469,699 2021 642,997 2022 219,723 Total lease payments 1,332,419 Less: imputed interest 90,393 Present value of lease payments 1,242,026 Less: current lease obligations 609,988 Total long-term lease obligations $ 632,038
Future Minimum Payments Under Operating Leases	The Company also had future minimum payments as of June 30, 2019 under its operating leases for each fiscal year ending June 30 that were as follows: 2020 $ 625,788 2021 642,997 2022 219,723 Total $ 1,488,508

SHAREHOLDERS' EQUITY AND STOC_2

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Sep. 30, 2019
SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION [Abstract]
Stock Based Compensation	The following table summarizes the components of the Company’s stock-based compensation included in net income for the periods presented: Three Months Ended September 30, 2019 2018 Employee stock options $ 63,876 $ 58,172 Restricted stock awards 148,504 13,004 Totals $ 212,380 $ 71,176
Stock Option Activity	The following is a summary of the stock option activity for the three months ended September 30, 2019: Shares Weighted Average Exercise Price Outstanding, June 30, 2019 2,523,638 $ 1.41 Granted 70,000 $ 1.33 Expired (15,600 ) $ 0.46 Outstanding, September 30, 2019 2,578,038 $ 1.41
Information About Stock Options Outstanding	The following table summarizes information about stock options outstanding at September 30, 2019: Options Outstanding Options Exercisable Options Vested or Expected to Vest Balance as of 9/30/2019 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Balance as of 9/30/2019 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Balance as of 9/30/2019 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price 2,578,038 6.82 $ 1.41 2,081,763 6.35 $ 1.49 2,497,408 6.75 $ 1.42
Restricted Stock Activity	The following is a summary of the restricted stock activity for the three months ended September 30, 2019: Shares Weighted Average Grant Date Fair Value Unvested, June 30, 2019 129,500 $ 1.07 Granted 325,000 $ 1.57 Vested (128,341 ) $ 1.07 Canceled (1,159 ) $ 1.07 Unvested, September 30, 2019 325,000 $ 1.57

NET INCOME PER COMMON SHARE (Ta

NET INCOME PER COMMON SHARE (Tables)	3 Months Ended
	Sep. 30, 2019
NET INCOME PER COMMON SHARE [Abstract]
Reconciliation of Basic and Diluted Net Income Per Share	The following table reconciles the differences between the basic and diluted net income per share presentations: Three Months Ended September 30, 2019 2018 Numerator: Net income $ 207,319 $ 109,903 Denominator: Weighted average common shares outstanding: Basic 28,563,688 21,454,977 Effect of dilutive securities 659,248 203,539 Diluted 29,222,936 21,658,516 Net income 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, 2019
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 as of the dates presented: September 30, 2019 June 30, 2019 Customer A 20 % 25 % Customer B 19 % 13 % Customer C * % 15 % * Customer C did not have individual balances that represented 10% or more of total gross accounts receivable as of September 30, 2019. 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 for the periods presented: Three Months Ended September 30, 2019 2018 Customer A 13 % 14 % Customer B 14 % ** % Customer D * % 10 % * Customer D did not have net sales that represented 10% or more of total net sales for the three months ended September 30, 2019. ** Customer B 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, 2019	Jun. 30, 2019	Sep. 30, 2018	Jun. 30, 2018
Cash, Cash Equivalents and Restricted Cash [Abstract]
Cash and cash equivalents	$ 12,243,719	$ 12,465,483
Restricted cash	356,191	541,062
Total cash, cash equivalents, and restricted cash	12,599,910	13,006,545	$ 2,219,782	$ 3,393,186
Recently Adopted/Issued Accounting Pronouncements [Abstract]
Operating lease ROU assets	883,832	0
Operating lease liabilities	$ 1,242,026
ASU 2016-02 [Member]
Recently Adopted/Issued Accounting Pronouncements [Abstract]
Operating lease ROU assets		983,000
Operating lease liabilities		$ 1,380,000

SEGMENT INFORMATION AND GEOGR_3

SEGMENT INFORMATION AND GEOGRAPHIC DATA, Product Line (Details)	3 Months Ended
	Sep. 30, 2019USD ($)Segment	Sep. 30, 2018USD ($)
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	$ 7,608,421	$ 6,594,706
Product line cost of goods sold	3,876,624	3,613,748
Operating income	152,705	115,058
Depreciation and amortization	124,637	108,216
Capital expenditures	111,317	164,099
Continuing Operations [Member]
Summary information by segment [Abstract]
Net sales	7,608,421	6,594,706
Product line cost of goods sold	3,502,362	3,104,803
Product line gross profit	4,106,059	3,489,903
Operating income	152,705	115,058
Depreciation and amortization	124,637	108,216
Capital expenditures	111,317	164,099
Continuing Operations [Member] | Finished Jewelry [Member]
Summary information by segment [Abstract]
Net sales	3,857,995	2,554,637
Product line cost of goods sold	1,702,910	1,056,038
Product line gross profit	2,155,085	1,498,599
Continuing Operations [Member] | Loose Jewels [Member]
Summary information by segment [Abstract]
Net sales	3,750,426	4,040,069
Product line cost of goods sold	1,799,452	2,048,765
Product line gross profit	1,950,974	1,991,304
Operating and Reportable Segments [Member] | Continuing Operations [Member] | Online Channels [Member]
Summary information by segment [Abstract]
Net sales	3,705,630	3,083,100
Product line cost of goods sold	1,478,067	1,321,674
Product line gross profit	2,227,563	1,761,426
Operating income	45,665	83,747
Depreciation and amortization	49,250	28,076
Capital expenditures	73,725	1,250
Operating and Reportable Segments [Member] | Continuing Operations [Member] | Online Channels [Member] | Finished Jewelry [Member]
Summary information by segment [Abstract]
Net sales	2,977,348	2,115,940
Product line cost of goods sold	1,212,873	833,389
Product line gross profit	1,764,475	1,282,551
Operating and Reportable Segments [Member] | Continuing Operations [Member] | Online Channels [Member] | Loose Jewels [Member]
Summary information by segment [Abstract]
Net sales	728,282	967,160
Product line cost of goods sold	265,194	488,285
Product line gross profit	463,088	478,875
Operating and Reportable Segments [Member] | Continuing Operations [Member] | Traditional [Member]
Summary information by segment [Abstract]
Net sales	3,902,791	3,511,606
Product line cost of goods sold	2,024,295	1,783,129
Product line gross profit	1,878,496	1,728,477
Operating income	107,040	31,311
Depreciation and amortization	75,387	80,140
Capital expenditures	37,592	162,849
Operating and Reportable Segments [Member] | Continuing Operations [Member] | Traditional [Member] | Finished Jewelry [Member]
Summary information by segment [Abstract]
Net sales	880,647	438,697
Product line cost of goods sold	490,037	222,649
Product line gross profit	390,610	216,048
Operating and Reportable Segments [Member] | Continuing Operations [Member] | Traditional [Member] | Loose Jewels [Member]
Summary information by segment [Abstract]
Net sales	3,022,144	3,072,909
Product line cost of goods sold	1,534,258	1,560,480
Product line gross profit	1,487,886	1,512,429
Segment Reconciling Items [Member] | Continuing Operations [Member]
Summary information by segment [Abstract]
Product line cost of goods sold	3,876,624	3,613,748
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	3,502,362	3,104,803
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	389,877	346,604
Segment Reconciling Items [Member] | Continuing Operations [Member] | Freight Out [Member]
Summary information by segment [Abstract]
Product line cost of goods sold	131,119	99,119
Segment Reconciling Items [Member] | Continuing Operations [Member] | Inventory Valuation Allowances [Member]
Summary information by segment [Abstract]
Product line cost of goods sold	23,000	49,000
Segment Reconciling Items [Member] | Continuing Operations [Member] | Other Inventory Adjustments [Member]
Summary information by segment [Abstract]
Product line cost of goods sold	$ (169,734)	$ 14,222

SEGMENT INFORMATION AND GEOGR_4

SEGMENT INFORMATION AND GEOGRAPHIC DATA, Data by Geographic Area (Details) - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Net sales [Abstract]
Net sales	$ 7,608,421	$ 6,594,706
Continuing Operations [Member]
Net sales [Abstract]
Net sales	7,608,421	6,594,706
Reportable Geographical Components [Member] | Continuing Operations [Member] | United States [Member]
Net sales [Abstract]
Net sales	6,763,876	5,822,870
Reportable Geographical Components [Member] | Continuing Operations [Member] | International [Member]
Net sales [Abstract]
Net sales	$ 844,545	$ 771,836

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
FAIR VALUE MEASUREMENTS [Abstract]
Asset impairment	$ 0	$ 0

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	Sep. 30, 2019	Jun. 30, 2019
Total inventories, net of reserves [Abstract]
Raw materials	$ 4,351,565	$ 4,450,478
Work-in-process	12,266,806	10,871,823
Finished goods	18,639,550	18,557,224
Finished goods on consignment	2,963,009	2,086,084
Total supplies inventory	128,645	129,111
Less: inventory reserves	(2,384,000)	(2,361,000)
Total inventory	35,965,575	33,733,720
Short-term portion	11,787,226	11,909,792
Long-term portion	24,178,349	21,823,928
Inventories issued to active production	1,950,000	1,230,000
Inventory of net jewelry	11,370,000	9,330,000
Inventory of net loose jewels	24,460,000	24,270,000
Inventory reserve for obsolescence	1,820,000	1,790,000
Carrying value of inventory reserve for obsolescence of finished jewelry	67,000	19,000
Lower of cost or market value	1,750,000	1,770,000
Inventory reserve for shrinkage	144,000	112,000
Inventory reserve for shrinkage of finished jewelry	108,000	105,000
Inventory reserve for shrinkage of loose jewels	36,000	7,000
Shrinkage reserve for finished goods on consignment	14,000	15,000
Inventory reserve for shrinkage of loose jewels on consignment	2,000	1,000
Inventory reserve for shrinkage of finished jewelry on consignment	12,000	14,000
Inventory rework reserve for recut of loose jewel	418,000	460,000
Finished Jewelry [Member]
Total inventories, net of reserves [Abstract]
Raw materials	772,119	643,797
Work-in-process	1,089,875	487,680
Finished goods	6,810,280	6,332,533
Finished goods on consignment	2,700,443	1,867,549
Total	11,372,717	9,331,559
Loose Jewels [Member]
Total inventories, net of reserves [Abstract]
Raw materials	3,579,446	3,806,681
Work-in-process	11,176,931	10,384,143
Finished goods	9,459,270	9,878,691
Finished goods on consignment	248,566	203,535
Total	$ 24,464,213	$ 24,273,050

RETURNS ASSET AND REFUND LIAB_2

RETURNS ASSET AND REFUND LIABILITIES (Details) - USD ($)	Sep. 30, 2019	Jun. 30, 2019
RETURNS ASSET AND REFUND LIABILITIES [Abstract]
Refund liabilities	$ 715,000	$ 746,000
Asset returns	$ 308,000	$ 279,000

ACCRUED EXPENSES AND OTHER LI_3

ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($)	Sep. 30, 2019	Jun. 30, 2019
ACCRUED EXPENSES AND OTHER LIABILITIES [Abstract]
Accrued compensation and related benefits	$ 511,484	$ 760,324
Accrued sales tax	190,933	286,864
Deferred rent	0	156,306
Accrued cooperative advertising	166,821	73,033
Other	56,880	49,081
Accrued expenses and other liabilities	$ 926,118	$ 1,325,608

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
INCOME TAXES [Abstract]
Tax benefit of AMT credit refund	$ (23,000)
Income tax expense for estimated tax, penalties, and interest for other uncertain tax positions	$ 6,000	$ 5,000

COMMITMENTS AND CONTINGENCIES,

COMMITMENTS AND CONTINGENCIES, Lease Arrangements (Details)	3 Months Ended
	Sep. 30, 2019USD ($)ft²Option	Sep. 30, 2018USD ($)	Jun. 30, 2019USD ($)	May 23, 2014USD ($)
COMMITMENTS AND CONTINGENCIES [Abstract]
Land subject to leases | ft²	36,350
Number of options to extend lease term | Option	2
Period of extension on each options	5 years
Minimum notice period for extension of lease term	270 days
Leasehold improvements and other lease related incentives offered by landlord				$ 623,000
Unamortized lease assets			$ 393,000
Operating Leases [Abstract]
Noncurrent operating lease ROU assets	$ 883,832		0
Current operating lease liabilities	609,988		0
Noncurrent operating lease liabilities	632,038		0
Total operating lease liabilities	1,242,026
Operating lease cost	$ 137,000
Assumed discount rate	7.14%
Remaining operating lease term	2 years 29 days
Future Lease Payments Under Operating Leases [Abstract]
2020	$ 469,699
2021	642,997
2022	219,723
Total lease payments	1,332,419
Less: imputed interest	90,393
Total operating lease liabilities	1,242,026
Less: current lease obligations	609,988		0
Total long-term lease obligations	632,038		0
Cash paid for operating leases	164,000
Rent expense	$ 528,000	$ 134,000
Future Minimum Payments Under Operating Leases [Abstract]
2020			625,788
2021			642,997
2022			219,723
Total			$ 1,488,508

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES, Purchase Commitments (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
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	41,490
Actual purchases under purchase amendment	2,490	$ 2,110
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 (Details)

LINE OF CREDIT (Details) - White Oak Commercial Finance LLC [Member]	3 Months Ended
	Sep. 30, 2019USD ($)
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
Interest rate in event of default in excess of standard rate	2.00%
Credit facility outstanding	$ 0
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] | 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] | LIBOR [Member]
Line of Credit Facility Disclosure [Abstract]
Line of credit, spread on variable rate	4.75%

SHAREHOLDERS' EQUITY AND STOC_3

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION, Shelf Registration Statement (Details) - USD ($)	Jul. 03, 2019	Jun. 11, 2019	Sep. 30, 2019	Sep. 30, 2018
Shelf Registration Statement [Abstract]
Aggregate value of shares and warrants remaining available for future issuance			$ 13,990,000
Issuance of common stock, , net of offering costs (in shares)	6,880,500	6,250,000
Share price (in dollars per share)	$ 1.60	$ 1.60
Net proceeds from issuance of common stock		$ 9,060,000	932,480	$ 0
Underwriting discount, fees and expenses	$ 1,020,000	$ 941,000
Gross proceeds from issuance of common stock	$ 11,010,000
Maximum [Member]
Shelf Registration Statement [Abstract]
Aggregate value of shares and warrants authorized for future issuance			$ 25,000,000
Over-Allotment [Member]
Shelf Registration Statement [Abstract]
Issuance of common stock, , net of offering costs (in shares)	630,500
Share price (in dollars per share)	$ 1.60
Net proceeds from issuance of common stock	$ 932,480
Underwriting discount, fees and expenses	$ 76,000
Option buying period			30 days
Number of shares available for purchase, Option buying period (in shares)		937,500

SHAREHOLDERS' EQUITY AND STOC_4

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION, Stock-Based Compensation (Details) - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Stock-Based Compensation [Abstract]
Stock-based compensation	$ 212,380	$ 71,176
Employee Stock Options [Member]
Stock-Based Compensation [Abstract]
Stock-based compensation	63,876	58,172
Stock-based compensation capitalized as a cost of inventory	0	0
Restricted Stock Awards [Member]
Stock-Based Compensation [Abstract]
Stock-based compensation	$ 148,504	$ 13,004

SHAREHOLDERS' EQUITY AND STOC_5

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION, Stock Options (Details) - Stock Options [Member] - USD ($)	3 Months Ended
	Sep. 30, 2019	Mar. 31, 2018	Sep. 30, 2019
Stock Option Activity [Roll Forward]
Outstanding, beginning balance (in shares)	2,523,638
Granted (in shares)	70,000
Expired (in shares)	(15,600)
Outstanding, ending balance (in shares)	2,578,038
Weighted Average Exercise Price [Roll Forward]
Outstanding, beginning balance (in dollars per share)	$ 1.41
Granted (in dollars per share)	1.33
Expired (in dollars per share)	0.46
Outstanding, ending balance (in dollars per share)	$ 1.41
Fair value of stock options vested	$ 26,132,000
Options Outstanding [Abstract]
Balance as of end of period (in shares)	2,523,638		2,578,038
Weighted average remaining contractual life	6 years 9 months 25 days
Weighted average exercise price (in dollars per share)	$ 1.41		$ 1.41
Options Exercisable [Abstract]
Balance as of end of period (in shares)			2,081,763
Weighted average remaining contractual life	6 years 4 months 6 days
Weighted average exercise price (in dollars per share)			$ 1.49
Options Vested or Expected to Vest [Abstract]
Balance as of end of period (in shares)			2,497,408
Weighted average remaining contractual life	6 years 9 months
Weighted average exercise price (in dollars per share)			$ 1.42
Additional Disclosures [Abstract]
Unrecognized stock-based compensation expense related to unvested awards			$ 146,000
Total compensation cost not yet recognized, period for recognition	23 months
Aggregate intrinsic value of stock options outstanding			1,090,000
Aggregate intrinsic value of stock options exercisable			1,090,000
Aggregate intrinsic value of stock options vested or expected to vest			$ 1,090,000
Exercised (in shares)	0
Aggregate intrinsic value of stock options exercised		$ 300

SHAREHOLDERS' EQUITY AND STOC_6

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION, Restricted Stock (Details)	3 Months Ended
	Sep. 30, 2019USD ($)$ / sharesshares
Dividends [Abstract]
Cash dividends | $	$ 0
Restricted Stock [Member]
Restricted Stock Activity [Roll Forward]
Unvested, beginning balance (in shares) | shares	129,500
Granted (in shares) | shares	325,000
Vested (in shares) | shares	(128,341)
Canceled (in shares) | shares	(1,159)
Unvested, ending balance (in shares) | shares	325,000
Weighted Average Grant Date Fair Value [Roll Forward]
Unvested, beginning balance (in dollars per share) | $ / shares	$ 1.07
Granted (in dollars per share) | $ / shares	1.57
Vested (in dollars per share) | $ / shares	1.07
Canceled (in dollars per share) | $ / shares	1.07
Unvested, ending balance (in dollars per share) | $ / shares	$ 1.57
Additional Disclosures [Abstract]
Unrecognized stock-based compensation expense related to unvested awards | $	$ 420,000
Total compensation cost not yet recognized, period for recognition	9 months

NET INCOME PER COMMON SHARE (De

NET INCOME PER COMMON SHARE (Details) - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Numerator [Abstract]
Net income	$ 207,319	$ 109,903
Weighted average common shares outstanding [Abstract]
Basic (in shares)	28,563,688	21,454,977
Effect of dilutive securities (in shares)	659,248	203,539
Diluted (in shares)	29,222,936	21,658,516
Net income per common share:
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 income per common share (in shares)	1,990,000	2,230,000

MAJOR CUSTOMERS AND CONCENTRA_3

MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK (Details) - USD ($)	3 Months Ended				12 Months Ended
	Sep. 30, 2019		Sep. 30, 2018		Jun. 30, 2019
Concentration of Credit Risk [Abstract]
Interest bearing amounts on deposit in excess of FDIC insurable limits	$ 250,000
Non-interest-bearing amounts on deposit in excess of FDIC insurable limits	0
Interest-bearing amounts on deposit in excess of FDIC insurable limits	$ 11,870,000
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	90 days
Trade Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer A [Member]
Concentration of Credit Risk [Abstract]
Concentration risk, percentage	20.00%				25.00%
Trade Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer B [Member]
Concentration of Credit Risk [Abstract]
Concentration risk, percentage	19.00%				13.00%
Trade Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer C [Member]
Concentration of Credit Risk [Abstract]
Concentration risk, percentage		[1]			15.00%
Total Net Sales [Member] | Customer Concentration Risk [Member] | Customer A [Member]
Concentration of Credit Risk [Abstract]
Concentration risk, percentage	13.00%		14.00%
Total Net Sales [Member] | Customer Concentration Risk [Member] | Customer B [Member]
Concentration of Credit Risk [Abstract]
Concentration risk, percentage	14.00%			[2]
Total Net Sales [Member] | Customer Concentration Risk [Member] | Customer D [Member]
Concentration of Credit Risk [Abstract]
Concentration risk, percentage		[3]	10.00%
[1]	Customer C did not have individual balances that represented 10% or more of total gross accounts receivable as of September 30, 2019.
[2]	Customer B did not have net sales that represented 10% or more of total net sales for the three months ended September 30, 2018.
[3]	Customer D did not have net sales that represented 10% or more of total net sales for the three months ended September 30, 2019.