Charles & Colvard (CTHR) 10-Q 6 Nov 20 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2020	Oct. 30, 2020
Cover [Abstract]
Entity Registrant Name	CHARLES & COLVARD LTD
Entity Central Index Key	0001015155
Current Fiscal Year End Date	--06-30
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2020
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Entity Address, State or Province	NC
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		28,965,660

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($)	Sep. 30, 2020	Jun. 30, 2020
Current assets:
Cash and cash equivalents	$ 13,756,695	$ 13,993,032
Restricted cash	105,014	624,202
Accounts receivable, net	1,625,515	670,718
Inventory, net	8,975,998	7,443,257
Prepaid expenses and other assets	1,260,322	1,177,860
Total current assets	25,723,544	23,909,069
Long-term assets:
Inventory, net	20,748,762	23,190,702
Property and equipment, net	969,635	999,061
Intangible assets, net	180,722	170,151
Operating lease right-of-use assets	475,113	584,143
Other assets	50,109	51,461
Total long-term assets	22,424,341	24,995,518
TOTAL ASSETS	48,147,885	48,904,587
Current liabilities:
Accounts payable	2,582,538	3,748,235
Operating lease liabilities	626,763	622,493
Current maturity of long-term debt	386,000	193,000
Accrued expenses and other liabilities	1,496,755	1,922,332
Total current liabilities	5,092,056	6,486,060
Long-term liabilities:
Long-term debt	579,000	772,000
Noncurrent operating lease liabilities	51,190	203,003
Accrued income taxes	8,441	7,947
Total long-term liabilities	638,631	982,950
Total liabilities	5,730,687	7,469,010
Commitments and contingencies (Note 9)
Shareholders' equity:
Common stock, no par value; 50,000,000 shares authorized; 28,965,660 and 28,949,410 shares issued and outstanding at September 30, 2020 and June 30, 2020, respectively	54,342,864	54,342,864
Additional paid-in capital	25,987,520	25,880,165
Accumulated deficit	(37,913,186)	(38,787,452)
Total shareholders' equity	42,417,198	41,435,577
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 48,147,885	$ 48,904,587

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares	Sep. 30, 2020	Jun. 30, 2020
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)	28,965,660	28,949,410
Common stock, shares outstanding (in shares)	28,965,660	28,949,410

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($)	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) [Abstract]
Net sales	$ 7,926,293	$ 7,608,421
Costs and expenses:
Cost of goods sold	4,196,055	3,876,624
Sales and marketing	1,647,933	2,229,591
General and administrative	1,208,035	1,349,501
Total costs and expenses	7,052,023	7,455,716
Income from operations	874,270	152,705
Other income (expense):
Interest income	3,459	61,379
Interest expense	(2,439)	(142)
Loss on foreign currency exchange	(530)	(538)
Total other income (expense), net	490	60,699
Income before income taxes	874,760	213,404
Income tax expense	(494)	(6,085)
Net Income	$ 874,266	$ 207,319
Net income per common share:
Basic (in dollars per share)	$ 0.03	$ 0.01
Diluted (in dollars per share)	$ 0.03	$ 0.01
Weighted average number of shares used in computing net income per common share:
Basic (in shares)	28,786,910	28,563,688
Diluted (in shares)	28,839,897	29,222,936

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, 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
Balance at Jun. 30, 2020	$ 54,342,864	25,880,165	(38,787,452)	41,435,577
Balance (in shares) at Jun. 30, 2020	28,949,410
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	$ 0	107,355	0	107,355
Issuance of restricted stock	$ 0	0	0	0
Issuance of restricted stock (in shares)	178,750
Retirement of restricted stock	$ 0	0	0	0
Retirement of restricted stock (in shares)	(162,500)
Net income	$ 0	0	874,266	874,266
Balance at Sep. 30, 2020	$ 54,342,864	$ 25,987,520	$ (37,913,186)	$ 42,417,198
Balance (in shares) at Sep. 30, 2020	28,965,660

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 874,266	$ 207,319
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	132,456	124,637
Stock-based compensation	107,355	212,380
Provision for (Recovery of) uncollectible accounts	32,514	(28,000)
Provision for (Recovery of) sales returns	96,000	(31,000)
Inventory write-off	80,000	23,000
Provision for accounts receivable discounts	1,688	12,476
Changes in operating assets and liabilities:
Accounts receivable	(1,084,999)	8,382
Inventory	829,199	(2,254,855)
Prepaid expenses and other assets, net	27,920	(417,147)
Accounts payable	(1,165,697)	1,048,990
Accrued income taxes	494	6,085
Accrued expenses and other liabilities	(573,120)	(135,743)
Net cash used in operating activities	(641,924)	(1,223,476)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(101,459)	(111,317)
Payments for intangible assets	(12,142)	(4,322)
Net cash used in investing activities	(113,601)	(115,639)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock, net of offering costs	0	932,480
Net cash provided by financing activities	0	932,480
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(755,525)	(406,635)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD	14,617,234	13,006,545
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD	13,861,709	12,599,910
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	2,439	142
Cash paid during the period for income taxes	$ 3,350	$ 2,050

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	3 Months Ended
	Sep. 30, 2020
DESCRIPTION OF BUSINESS [Abstract]
DESCRIPTION OF BUSINESS	1. DESCRIPTION OF BUSINESS Charles & Colvard, Ltd. (the “Company”), a North Carolina corporation, was founded in 1995. The Company manufactures, markets, and distributes Charles & Colvard Created Moissanite ® Forever One™ Caydia

BASIS OF PRESENTATION AND SIGNI

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Sep. 30, 2020
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, 2020 and 2019 included in this Quarterly Report on Form 10-Q are unaudited. The balance sheet as of June 30, 2020 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 contained in Item 8 of the Company’s Annual Report on Form 10-K (the “2020 Annual Report”) for the fiscal year ended June 30, 2020 filed with the SEC on September 4, 2020. The accompanying condensed consolidated financial statements as of and for the three months ended September 30, 2020 and 2019, and as of the fiscal year ended June 30, 2020, 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 entered into dormancy as of September 30, 2020 following its re-activation in December 2017. Charles & Colvard Direct, LLC, had no operating activity during the three-month period ended September 30, 2020 or 2019. 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 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 additional information regarding the Company’s asset-based revolving credit facility, see Note 10, “Debt.” 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, 2020 June 30, 2020 Cash and cash equivalents $ 13,756,695 $ 13,993,032 Restricted cash 105,014 624,202 Total cash, cash equivalents, and restricted cash $ 13,861,709 $ 14,617,234 Recently Adopted/Issued Accounting Pronouncements – to the measurement and disclosure of credit losses on financial instruments. The new guidance includes a current expected credit loss (“CECL”) model that requires an entity to estimate credit losses expected over the life of an exposure or pool of exposures based on historical information, current conditions, and supportable forecasts at the time the asset is recognized and is measured at each reporting period. The new guidance principally The adoption of the new accounting standard did not have a material impact on the Company’s financial position or results of operations and the Company did not record a cumulative-effect adjustment to retained earnings. The Company amended its allowance for credit losses policy, as set forth below, for the implementation of the new accounting standard. The Company records an allowance for credit losses, which includes a provision for expected losses based on historical write-offs, adjusted for current conditions as deemed necessary, and a specific reserve for accounts deemed at risk. The allowance is the Company’s estimate for accounts receivable as of the balance sheet date that ultimately will not be collected. Any changes in the allowance are reflected in the results of operations in the period in which the change occurs. The Company writes-off accounts receivable when it becomes probable, based upon customer facts and circumstances, that such amounts will not be collected. Effective July 1, 2020, the Company also adopted the new accounting standard in connection with accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. The new standard provides guidance to determine the accounting for fees paid in connection with a cloud computing arrangement that may include a software license. In December 2019, the FASB issued guidance on simplifying the accounting for income taxes that is intended to reduce the complexity while maintaining or improving the usefulness of tax disclosure information in financial statements. The new guidance is effective for fiscal years beginning after December 15, 2020. The Company does not expect the impact of the new guidance to have a material impact to the Company’s financial statements. In March 2020, in response to concerns about structural risks of interbank offered rates (“IBORs”), and, particularly, the risk of cessation of the London Interbank Offered Rate (“LIBOR”), the FASB issued new guidance to ease the burden in accounting for or recognizing the effects of referenced interest rate reform on financial reporting. The new guidance is effective as of March 12, 2020 through December 31, 2022. As described in more detail in Note 10, “Debt”, borrowings under the Company’s line of credit are based on a rate equal to the one-month LIBOR. As of September 30, 2020, the Company had not borrowed against its line of credit, and therefore, is not subject to recognizing or disclosing any effect of referenced rate reform as of its quarterly period ended September 30, 2020 .

SEGMENT INFORMATION AND GEOGRAP

SEGMENT INFORMATION AND GEOGRAPHIC DATA	3 Months Ended
	Sep. 30, 2020
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 the chief operating decision maker 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 2020 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 write-offs; and other inventory adjustments, comprising costs of quality issues, and damaged goods. 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, 2020 Online Channels Traditional Total Net sales Finished jewelry $ 3,623,462 $ 711,876 $ 4,335,338 Loose jewels 841,833 2,749,122 3,590,955 Total $ 4,465,295 $ 3,460,998 $ 7,926,293 Product line cost of goods sold Finished jewelry $ 1,333,383 $ 420,906 $ 1,754,289 Loose jewels 312,689 1,431,233 1,743,922 Total $ 1,646,072 $ 1,852,139 $ 3,498,211 Product line gross profit Finished jewelry $ 2,290,079 $ 290,970 $ 2,581,049 Loose jewels 529,144 1,317,889 1,847,033 Total $ 2,819,223 $ 1,608,859 $ 4,428,082 Operating income $ 774,665 $ 99,605 $ 874,270 Depreciation and amortization $ 54,352 $ 78,103 $ 132,456 Capital expenditures $ 59,250 $ 42,209 $ 101,459 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 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, 2020 2019 Product line cost of goods sold $ 3,498,211 $ 3,502,362 Non-capitalized manufacturing and production control expenses 329,406 389,877 Freight out 175,338 131,119 Inventory write-off 80,000 23,000 Other inventory adjustments 113,100 (169,734 ) Cost of goods sold $ 4,196,055 $ 3,876,624 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. 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, 2020 and June 30, 2020, are held and located in the United States. The following presents net sales data by geographic area: Three Months Ended September 30, 2020 2019 Net sales: United States $ 7,499,720 $ 6,763,876 International 426,573 844,545 Total $ 7,926,293 $ 7,608,421

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Sep. 30, 2020
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 and cash equivalents, trade accounts receivable, and trade accounts payable. All financial instruments are reflected in the 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, 2020 and 2019, no impairment was recorded. See Note 2, “Basis of Presentation and Significant Accounting Policies”, Recently Adopted/Issued Accounting Pronouncements

INVENTORIES

INVENTORIES	3 Months Ended
	Sep. 30, 2020
INVENTORIES [Abstract]
INVENTORIES	5. INVENTORIES The Company’s total inventories, net of reserves, consisted of the following as of the dates presented: September 30, 2020 June 30, 2020 Finished jewelry: Raw materials $ 903,745 $ 821,536 Work-in-process 1,535,064 602,390 Finished goods 6,565,932 6,019,985 Finished goods on consignment 2,222,092 2,297,907 Total finished jewelry $ 11,226,833 $ 9,741,818 Loose jewels: Raw materials $ 2,314,759 $ 3,526,399 Work-in-process 10,212,689 10,453,586 Finished goods 5,682,606 6,619,487 Finished goods on consignment 205,675 204,635 Total loose jewels 18,415,729 20,804,107 Total supplies inventory 82,198 88,034 Total inventory $ 29,724,760 $ 30,633,959 As of the dates presented, the Company’s total inventories, net of reserves, are classified as follows: September 30, 2020 June 30, 2020 Short-term portion $ 8,975,998 $ 7,443,257 Long-term portion 20,748,762 23,190,702 Total $ 29,724,760 $ 30,633,959 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, 2020 and June 30, 2020, work-in-process inventories issued to active production jobs approximated $2.51 million and $1.34 million, respectively. The Company’s moissanite and lab grown diamond 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 and lab grown diamonds. Relative to loose moissanite jewels and lab grown diamonds, 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 and lab grown diamonds 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 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 inventories are stated at the lower of cost or net realizable value on an average cost basis. Each accounting period the Company evaluates the valuation and classification of inventories including the need for potential adjustments to inventory-related reserves, which also include significant estimates by management. 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, 2020
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, 2020 and June 30, 2020, the Company’s refund liabilities balances were $800,000 and $704,000, respectively, and are included as allowances for sales returns within accounts receivable, net, in the accompanying condensed consolidated balance sheets. As of September 30, 2020 and June 30, 2020, the Company’s returns asset balances were $319,000 and $289,000, 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, 2020
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, 2020 June 30, 2020 Deferred revenue $ 414,525 $ 794,740 Accrued compensation and related benefits 406,587 395,006 Accrued sales tax 358,339 295,651 Accrued severance 211,157 338,355 Accrued cooperative advertising 106,146 89,517 Other 1 9,063 Total accrued expenses and other liabilities $ 1,496,755 $ 1,922,332

INCOME TAXES

INCOME TAXES	3 Months Ended
	Sep. 30, 2020
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 $500 and $6,100 for the three months ended September 30, 2020 and 2019, 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, 2020 and June 30, 2020, 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, the Company continued to maintain a full valuation allowance against its deferred tax assets as of September 30, 2020 and June 30, 2020.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Sep. 30, 2020
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, 2021 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 current lease accounting standard. 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, 2020, the Company’s balance sheet classifications of its leases are as follows: Operating Leases: Noncurrent operating lease ROU assets $ 475,113 Current operating lease liabilities $ 626,763 Noncurrent operating lease liabilities 51,190 Total operating lease liabilities $ 677,953 The Company’s total operating lease cost for the three months ended September 30, 2020 and 2019 was approximately $131,000 and $137,000, respectively. As of September 30, 2020, 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 1.08 years. As of September 30, 2020, the Company’s remaining future payments under operating leases for each fiscal year ending June 30 are as follows: 2021 $ 482,615 2022 219,723 Total lease payments 702,338 Less: imputed interest 24,385 Present value of lease payments 677,953 Less: current lease obligations 626,763 Total long-term lease obligations $ 51,190 The Company makes cash payments for amounts included in the measurement of its lease liabilities. During the three months ended September 30, 2020 and 2019, cash paid for operating leases was approximately $170,000 and $164,000, respectively, and, except for the ROU assets recorded upon adoption of the current lease accounting standard as of July 1, 2019, there were no new ROU assets obtained in exchange for new operating lease liabilities. 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. Effective June 30, 2020, the Supply Agreement was further amended to extend the expiration date to June 29, 2025, which may be extended again by mutual agreement of the parties. The Supply Agreement was also amended to, among other things, ( i ii iii The Company’s total purchase commitment under the Supply Agreement, as amended, until June 2025 is approximately $52.95 million, of which approximately $36.60 remains to be purchased as of September 30, 2020. Over the life of the Supply Agreement, as amended, the Company’s future minimum annual purchase commitments of SiC crystals range from approximately $4 million to $10 million each year. During the three months ended September 30, 2020, the Company did not purchase SiC crystals from Cree pursuant to the terms of the Supply Agreement, as amended. During the three months ended September 30, 2019, the Company purchased approximately $2.49 million of SiC crystals from Cree. COVID-19 Update The global outbreak of the coronavirus disease 2019, or COVID-19, was declared a pandemic by the World Health Organization and a national emergency by the U.S. Government in March 2020 and has negatively affected the U.S. and global economies, disrupted global supply chains, resulted in significant travel and transport restrictions, including mandated closures and orders to “shelter-in-place” and quarantine restrictions, and created significant disruption of the financial markets. Certain jurisdictions have begun re-opening only to return to restrictions due to increases in new COVID-19 cases. Even in the absence of legal restrictions, businesses and individuals may voluntarily continue to limit in-person interactions and practice social distancing, and such behaviors may continue beyond the formal end of the pandemic. The level and nature of the disruption caused by COVID-19 is unpredictable, may be cyclical and long-lasting and may vary from location to location. The Company’s management has taken measures to protect the health and safety of the Company’s employees, work with its customers and suppliers to minimize disruptions, reduce the Company’s expenses, and support its community in addressing the challenges posed by this ongoing COVID-19 pandemic. The pandemic continues to present unprecedented business challenges, and the Company has experienced impacts on its business related to the COVID-19 pandemic, primarily in increased coronavirus-related costs, delays in supplier deliveries, impacts of travel restrictions, access to some locations, the effects on net revenue related to reduced demand and store closures, and the impacts of remote work and adjusted work schedules. Despite these challenges, the Company’s efforts, especially with regard to product fulfillment and supply chain, helped to partially mitigate the disruptions caused by the COVID-19 pandemic on the Company’s operations in the first quarter of its fiscal year ending June 30, 2021, or Fiscal 2021. However, the ultimate impact of the COVID-19 pandemic on the Company’s operations and financial performance in Fiscal 2021, and future periods, including management’s ability to execute its business plan and strategic initiatives in the expected timeframe, remains uncertain and will depend on future developments, including the duration and spread of the COVID-19 pandemic and related actions taken by the U.S. Government, state and local government officials, and international governments to prevent and manage disease spread, all of which are uncertain and cannot be predicted. The long-term impacts of the COVID-19 pandemic on global consumer buying behaviors, which impacts demand for the Company’s products and services, are also difficult to predict.

DEBT

DEBT	3 Months Ended
	Sep. 30, 2020
DEBT [Abstract]
DEBT	10. DEBT Paycheck Protection Program Loan The Company received a loan pursuant to the Paycheck Protection Program under the CARES Act, as administered by the U.S. Small Business Administration (the “SBA”). The loan in the principal amount of $965,000 (the “PPP Loan”) was disbursed by Newtek Small Business Finance, LLC, (the “Lender”), a nationally licensed lender under the SBA, on June 18, 2020 pursuant to a promissory note issued by the Company (the “Promissory Note”) on June 15, 2020. The Company accounted for the Promissory Note as debt within the accompanying consolidated financial statements. The Promissory Note matures June 18, 2022 and may be extended with the consent of the Lender under the provisions of the CARES Act. The Promissory Note bears interest at a fixed rate of 1% per annum. Pursuant to the terms of the Promissory Note, monthly principal and interest payments in the amount of approximately $41,000 will commence on April 1, 2021. For financial reporting purposes, as of September 30, 2020, the classification of the current maturity of long-term debt assumes there will be no principal forgiveness, as allowed under certain conditions by the agreement, and principal repayment for the full outstanding principal amount of the PPP Loan is assumed to be spread in equal monthly installments over the period from April 1, 2021 through the maturity date of the Promissory Note. As of the dates presented, the Company’s total long-term debt is classified as follows: September 30, 2020 June 30, 2020 Current maturity of long-term debt $ 386,000 $ 193,000 Long-term debt, net 579,000 772,000 Total long-term debt $ 965,000 $ 965,000 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. During the first year of the term of the White Oak Credit Facility, revolving advances accrued 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 accrued 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. As of September 30, 2020, 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, 2020
SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION [Abstract]
STOCK-BASED COMPENSATION	11. SHAREHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION 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, 2020 2019 Employee stock options $ 91,040 $ 63,876 Restricted stock awards 16,315 148,504 Totals $ 107,355 $ 212,380 No stock-based compensation was capitalized as a cost of inventory during the three months ended September 30, 2020 or 2019. Stock Options – Shares Weighted Average Exercise Price Outstanding, June 30, 2020 2,809,095 $ 1.19 Granted 90,000 $ 0.73 Expired (56,000 ) $ 1.90 Outstanding, September 30, 2020 2,843,095 $ 1.16 The total fair value of stock options that vested during the three months ended September 30, 2020 was approximately $490,000. The following table summarizes information about stock options outstanding at September 30, 2020: Options Outstanding Options Exercisable Options Vested or Expected to Vest Balance as of 9/30/2020 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Balance as of 9/30/2020 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Balance as of 9/30/2020 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price 2,843,095 5.94 $ 1.16 2,381,458 5.29 $ 1.19 2,772,524 5.86 $ 1.17 As of September 30, 2020, the unrecognized stock-based compensation expense related to unvested stock options was approximately $135,000, which is expected to be recognized over a weighted average period of approximately 21 months. The aggregate intrinsic value of stock options outstanding, exercisable, and vested or expected to vest at September 30, 2020 was approximately $115,000. This amount is before applicable income taxes and represents the closing market price of the Company’s common stock at September 30, 2020 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, 2020 and 2019. Restricted Stock – Shares Weighted Average Grant Date Fair Value Unvested, June 30, 2020 162,500 $ 1.57 Granted 178,750 $ 0.72 Canceled (162,500 ) $ 1.57 Unvested, September 30, 2020 178,750 $ 0.72 The unvested restricted shares as of September 30, 2020 are all performance-based restricted shares that are scheduled to vest, subject to achievement of the underlying performance goals, in July 2021. As of September 30, 2020, the estimated unrecognized stock-based compensation expense related to unvested restricted shares subject to achievement of performance goals was approximately $112,000, all of which is expected to be recognized over a weighted average period of approximately ten months.
SHAREHOLDERS' EQUITY	Dividends The Company has paid no cash dividends during the current fiscal year through September 30, 2020.

NET INCOME PER COMMON SHARE

NET INCOME PER COMMON SHARE	3 Months Ended
	Sep. 30, 2020
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, 2020 2019 Numerator: Net income $ 874,266 $ 207,319 Denominator: Weighted average common shares outstanding: Basic 28,786,910 28,563,688 Effect of dilutive securities 52,987 659,248 Diluted 28,839,897 29,222,936 Net income per common share: Basic $ 0.03 $ 0.01 Diluted $ 0.03 $ 0.01 For the three months ended September 30, 2020 and 2019, stock options to purchase approximately 2.79 million and 1.99 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 or the effect of inclusion of such amounts would be anti-dilutive to net income per common share. Approximately 179,000 and 325,000 shares of unvested restricted stock are excluded from the computation of diluted net income per common share as of September 30, 2020 and 2019, respectively, because the shares are performance-based and the underlying conditions have not been met as of the periods presented and the effects of the inclusion of such shares would be anti-dilutive to net income per common share.

MAJOR CUSTOMERS AND CONCENTRATI

MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK	3 Months Ended
	Sep. 30, 2020
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 principally of cash on deposit and cash equivalents held with one bank and trade accounts receivable. At times, cash and cash equivalents balances may exceed the Federal Deposit Insurance Corporation (“FDIC”) insurable limits. The Company’s money market fund investment account (recognized as cash and cash equivalents) is invested with what the Company believes to be a high-quality issuer. 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, 2020 and June 30, 2020 approximated $2.77 million and $2.01 million, respectively. Interest-bearing amounts on deposit in excess of FDIC insurable limits at September 30, 2020 and June 30, 2020 approximated $10.64 million and $11.64 million, respectively. 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, though it may offer extended terms with specific customers and on significant orders from time to time. 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. For additional information regarding the Company’s measurement and disclosure of credit losses on financial assets, including trade accounts receivable, see Note 4, “Fair Value Measurements.” 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, 2020 June 30, 2020 Customer A 26 % 26 % Customer B 17 % 14 % Customer C 11 % 13 % Customer D 11 % * % * Customer D did not have individual balances that represented 10% or more of total gross accounts receivable as of June 30, 2020. 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, 2020 2019 Customer B 14 % 13 % Customer A * % 14 % * Customer A did not have net sales that represented 10% or more of total net sales for the three months ended September 30, 2020.

BASIS OF PRESENTATION AND SIG_2

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Sep. 30, 2020
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Basis of Presentation	Basis of Presentation and Principles of Consolidation The condensed consolidated financial statements as of and for the three months ended September 30, 2020 and 2019 included in this Quarterly Report on Form 10-Q are unaudited. The balance sheet as of June 30, 2020 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 contained in Item 8 of the Company’s Annual Report on Form 10-K (the “2020 Annual Report”) for the fiscal year ended June 30, 2020 filed with the SEC on September 4, 2020.
Principles of Consolidation	The accompanying condensed consolidated financial statements as of and for the three months ended September 30, 2020 and 2019, and as of the fiscal year ended June 30, 2020, 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 entered into dormancy as of September 30, 2020 following its re-activation in December 2017. Charles & Colvard Direct, LLC, had no operating activity during the three-month period ended September 30, 2020 or 2019. 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.
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 additional information regarding the Company’s asset-based revolving credit facility, see Note 10, “Debt.” 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, 2020 June 30, 2020 Cash and cash equivalents $ 13,756,695 $ 13,993,032 Restricted cash 105,014 624,202 Total cash, cash equivalents, and restricted cash $ 13,861,709 $ 14,617,234
Credit Losses on Financial Instruments	Effective July 1, 2020, the Company adopted the new accounting standard related to the measurement and disclosure of credit losses on financial instruments. The new guidance includes a current expected credit loss (“CECL”) model that requires an entity to estimate credit losses expected over the life of an exposure or pool of exposures based on historical information, current conditions, and supportable forecasts at the time the asset is recognized and is measured at each reporting period. The new guidance principally The adoption of the new accounting standard did not have a material impact on the Company’s financial position or results of operations and the Company did not record a cumulative-effect adjustment to retained earnings. The Company amended its allowance for credit losses policy, as set forth below, for the implementation of the new accounting standard.
Cloud Computing Arrangement Implementation Costs	Effective July 1, 2020, the Company also adopted the new accounting standard in connection with accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. The new standard provides guidance to determine the accounting for fees paid in connection with a cloud computing arrangement that may include a software license.
Recently Issued Accounting Pronouncements	In December 2019, the FASB issued guidance on simplifying the accounting for income taxes that is intended to reduce the complexity while maintaining or improving the usefulness of tax disclosure information in financial statements. The new guidance is effective for fiscal years beginning after December 15, 2020. The Company does not expect the impact of the new guidance to have a material impact to the Company’s financial statements. In March 2020, in response to concerns about structural risks of interbank offered rates (“IBORs”), and, particularly, the risk of cessation of the London Interbank Offered Rate (“LIBOR”), the FASB issued new guidance to ease the burden in accounting for or recognizing the effects of referenced interest rate reform on financial reporting. The new guidance is effective as of March 12, 2020 through December 31, 2022. As described in more detail in Note 10, “Debt”, borrowings under the Company’s line of credit are based on a rate equal to the one-month LIBOR. As of September 30, 2020, the Company had not borrowed against its line of credit, and therefore, is not subject to recognizing or disclosing any effect of referenced rate reform as of its quarterly period ended September 30, 2020 .

BASIS OF PRESENTATION AND SIG_3

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Sep. 30, 2020
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, 2020 June 30, 2020 Cash and cash equivalents $ 13,756,695 $ 13,993,032 Restricted cash 105,014 624,202 Total cash, cash equivalents, and restricted cash $ 13,861,709 $ 14,617,234

SEGMENT INFORMATION AND GEOGR_2

SEGMENT INFORMATION AND GEOGRAPHIC DATA (Tables)	3 Months Ended
	Sep. 30, 2020
SEGMENT INFORMATION AND GEOGRAPHIC DATA [Abstract]
Summary Financial Information by Reportable Segment	Summary financial information by reportable segment is as follows: Three Months Ended September 30, 2020 Online Channels Traditional Total Net sales Finished jewelry $ 3,623,462 $ 711,876 $ 4,335,338 Loose jewels 841,833 2,749,122 3,590,955 Total $ 4,465,295 $ 3,460,998 $ 7,926,293 Product line cost of goods sold Finished jewelry $ 1,333,383 $ 420,906 $ 1,754,289 Loose jewels 312,689 1,431,233 1,743,922 Total $ 1,646,072 $ 1,852,139 $ 3,498,211 Product line gross profit Finished jewelry $ 2,290,079 $ 290,970 $ 2,581,049 Loose jewels 529,144 1,317,889 1,847,033 Total $ 2,819,223 $ 1,608,859 $ 4,428,082 Operating income $ 774,665 $ 99,605 $ 874,270 Depreciation and amortization $ 54,352 $ 78,103 $ 132,456 Capital expenditures $ 59,250 $ 42,209 $ 101,459 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
Reconciliation of Cost of Goods Sold	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, 2020 2019 Product line cost of goods sold $ 3,498,211 $ 3,502,362 Non-capitalized manufacturing and production control expenses 329,406 389,877 Freight out 175,338 131,119 Inventory write-off 80,000 23,000 Other inventory adjustments 113,100 (169,734 ) Cost of goods sold $ 4,196,055 $ 3,876,624
Net Sales by Geographic Area	The following presents net sales data by geographic area: Three Months Ended September 30, 2020 2019 Net sales: United States $ 7,499,720 $ 6,763,876 International 426,573 844,545 Total $ 7,926,293 $ 7,608,421

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Sep. 30, 2020
INVENTORIES [Abstract]
Inventories	The Company’s total inventories, net of reserves, consisted of the following as of the dates presented: September 30, 2020 June 30, 2020 Finished jewelry: Raw materials $ 903,745 $ 821,536 Work-in-process 1,535,064 602,390 Finished goods 6,565,932 6,019,985 Finished goods on consignment 2,222,092 2,297,907 Total finished jewelry $ 11,226,833 $ 9,741,818 Loose jewels: Raw materials $ 2,314,759 $ 3,526,399 Work-in-process 10,212,689 10,453,586 Finished goods 5,682,606 6,619,487 Finished goods on consignment 205,675 204,635 Total loose jewels 18,415,729 20,804,107 Total supplies inventory 82,198 88,034 Total inventory $ 29,724,760 $ 30,633,959 As of the dates presented, the Company’s total inventories, net of reserves, are classified as follows: September 30, 2020 June 30, 2020 Short-term portion $ 8,975,998 $ 7,443,257 Long-term portion 20,748,762 23,190,702 Total $ 29,724,760 $ 30,633,959

ACCRUED EXPENSES AND OTHER LI_2

ACCRUED EXPENSES AND OTHER LIABILITIES (Tables)	3 Months Ended
	Sep. 30, 2020
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, 2020 June 30, 2020 Deferred revenue $ 414,525 $ 794,740 Accrued compensation and related benefits 406,587 395,006 Accrued sales tax 358,339 295,651 Accrued severance 211,157 338,355 Accrued cooperative advertising 106,146 89,517 Other 1 9,063 Total accrued expenses and other liabilities $ 1,496,755 $ 1,922,332

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Sep. 30, 2020
COMMITMENTS AND CONTINGENCIES [Abstract]
Balance Sheet Classifications of Leases	As of September 30, 2020, the Company’s balance sheet classifications of its leases are as follows: Operating Leases: Noncurrent operating lease ROU assets $ 475,113 Current operating lease liabilities $ 626,763 Noncurrent operating lease liabilities 51,190 Total operating lease liabilities $ 677,953
Remaining Future Payments Under Operating Leases	As of September 30, 2020, the Company’s remaining future payments under operating leases for each fiscal year ending June 30 are as follows: 2021 $ 482,615 2022 219,723 Total lease payments 702,338 Less: imputed interest 24,385 Present value of lease payments 677,953 Less: current lease obligations 626,763 Total long-term lease obligations $ 51,190

DEBT (Tables)

DEBT (Tables)	3 Months Ended
	Sep. 30, 2020
DEBT [Abstract]
Long-Term Debt	As of the dates presented, the Company’s total long-term debt is classified as follows: September 30, 2020 June 30, 2020 Current maturity of long-term debt $ 386,000 $ 193,000 Long-term debt, net 579,000 772,000 Total long-term debt $ 965,000 $ 965,000

SHAREHOLDERS' EQUITY AND STOC_2

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Sep. 30, 2020
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, 2020 2019 Employee stock options $ 91,040 $ 63,876 Restricted stock awards 16,315 148,504 Totals $ 107,355 $ 212,380
Stock Option Activity	The following is a summary of the stock option activity for the three months ended September 30, 2020: Shares Weighted Average Exercise Price Outstanding, June 30, 2020 2,809,095 $ 1.19 Granted 90,000 $ 0.73 Expired (56,000 ) $ 1.90 Outstanding, September 30, 2020 2,843,095 $ 1.16
Stock Options Outstanding	The following table summarizes information about stock options outstanding at September 30, 2020: Options Outstanding Options Exercisable Options Vested or Expected to Vest Balance as of 9/30/2020 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Balance as of 9/30/2020 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Balance as of 9/30/2020 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price 2,843,095 5.94 $ 1.16 2,381,458 5.29 $ 1.19 2,772,524 5.86 $ 1.17
Restricted Stock Activity	The following is a summary of the restricted stock activity for the three months ended September 30, 2020: Shares Weighted Average Grant Date Fair Value Unvested, June 30, 2020 162,500 $ 1.57 Granted 178,750 $ 0.72 Canceled (162,500 ) $ 1.57 Unvested, September 30, 2020 178,750 $ 0.72

NET INCOME PER COMMON SHARE (Ta

NET INCOME PER COMMON SHARE (Tables)	3 Months Ended
	Sep. 30, 2020
NET INCOME PER COMMON SHARE [Abstract]
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, 2020 2019 Numerator: Net income $ 874,266 $ 207,319 Denominator: Weighted average common shares outstanding: Basic 28,786,910 28,563,688 Effect of dilutive securities 52,987 659,248 Diluted 28,839,897 29,222,936 Net income per common share: Basic $ 0.03 $ 0.01 Diluted $ 0.03 $ 0.01

MAJOR CUSTOMERS AND CONCENTRA_2

MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK (Tables)	3 Months Ended
	Sep. 30, 2020
MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK [Abstract]
Major Customers	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, 2020 June 30, 2020 Customer A 26 % 26 % Customer B 17 % 14 % Customer C 11 % 13 % Customer D 11 % * % * Customer D did not have individual balances that represented 10% or more of total gross accounts receivable as of June 30, 2020. 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, 2020 2019 Customer B 14 % 13 % Customer A * % 14 %

BASIS OF PRESENTATION AND SIG_4

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Sep. 30, 2020	Jun. 30, 2020	Sep. 30, 2019	Jun. 30, 2019
Reclassifications [Abstract]
Accounts payable	$ 2,582,538	$ 3,748,235
Accrued expenses and other liabilities	1,496,755	1,922,332
Cash, Cash Equivalents and Restricted Cash [Abstract]
Cash and cash equivalents	13,756,695	13,993,032
Restricted cash	105,014	624,202
Total cash, cash equivalents, and restricted cash	$ 13,861,709	$ 14,617,234	$ 12,599,910	$ 13,006,545
Reclassification [Member]
Reclassifications [Abstract]
Accounts payable			(142,000)
Accrued expenses and other liabilities			$ 142,000

SEGMENT INFORMATION AND GEOGR_3

SEGMENT INFORMATION AND GEOGRAPHIC DATA, Summary Financial Information by Reportable Segment (Details)	3 Months Ended
	Sep. 30, 2020USD ($)Segment	Sep. 30, 2019USD ($)
SEGMENT INFORMATION AND GEOGRAPHIC DATA [Abstract]
Number of operating segments | Segment	2
Number of reportable segments | Segment	2
Summary Information by Reportable Segment [Abstract]
Net sales	$ 7,926,293	$ 7,608,421
Product line cost of goods sold	4,196,055	3,876,624
Operating income	874,270	152,705
Depreciation and amortization	132,456	124,637
Capital expenditures	101,459	111,317
Product Line [Member]
Summary Information by Reportable Segment [Abstract]
Product line cost of goods sold	3,498,211	3,502,362
Product line gross profit	4,428,082	4,106,059
Finished Jewelry [Member]
Summary Information by Reportable Segment [Abstract]
Net sales	4,335,338	3,857,995
Product line cost of goods sold	1,754,289	1,702,910
Product line gross profit	2,581,049	2,155,085
Loose Jewels [Member]
Summary Information by Reportable Segment [Abstract]
Net sales	3,590,955	3,750,426
Product line cost of goods sold	1,743,922	1,799,452
Product line gross profit	1,847,033	1,950,974
Operating and Reportable Segments [Member] | Online Channels [Member]
Summary Information by Reportable Segment [Abstract]
Net sales	4,465,295	3,705,630
Product line cost of goods sold	1,646,072	1,478,067
Product line gross profit	2,819,223	2,227,563
Operating income	774,665	45,665
Depreciation and amortization	54,352	49,250
Capital expenditures	59,250	73,725
Operating and Reportable Segments [Member] | Online Channels [Member] | Finished Jewelry [Member]
Summary Information by Reportable Segment [Abstract]
Net sales	3,623,462	2,977,348
Product line cost of goods sold	1,333,383	1,212,873
Product line gross profit	2,290,079	1,764,475
Operating and Reportable Segments [Member] | Online Channels [Member] | Loose Jewels [Member]
Summary Information by Reportable Segment [Abstract]
Net sales	841,833	728,282
Product line cost of goods sold	312,689	265,194
Product line gross profit	529,144	463,088
Operating and Reportable Segments [Member] | Traditional [Member]
Summary Information by Reportable Segment [Abstract]
Net sales	3,460,998	3,902,791
Product line cost of goods sold	1,852,139	2,024,295
Product line gross profit	1,608,859	1,878,496
Operating income	99,605	107,040
Depreciation and amortization	78,103	75,387
Capital expenditures	42,209	37,592
Operating and Reportable Segments [Member] | Traditional [Member] | Finished Jewelry [Member]
Summary Information by Reportable Segment [Abstract]
Net sales	711,876	880,647
Product line cost of goods sold	420,906	490,037
Product line gross profit	290,970	390,610
Operating and Reportable Segments [Member] | Traditional [Member] | Loose Jewels [Member]
Summary Information by Reportable Segment [Abstract]
Net sales	2,749,122	3,022,144
Product line cost of goods sold	1,431,233	1,534,258
Product line gross profit	$ 1,317,889	$ 1,487,886

SEGMENT INFORMATION AND GEOGR_4

SEGMENT INFORMATION AND GEOGRAPHIC DATA, Reconciliation of Cost of Goods Sold (Details) - USD ($)	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Reconciliation of Cost of Goods Sold [Abstract]
Cost of goods sold	$ 4,196,055	$ 3,876,624
Inventory write-off	80,000	23,000
Product Line [Member]
Reconciliation of Cost of Goods Sold [Abstract]
Cost of goods sold	3,498,211	3,502,362
Segment Reconciling Item [Member]
Reconciliation of Cost of Goods Sold [Abstract]
Non-capitalized manufacturing and production control expenses	329,406	389,877
Freight out	175,338	131,119
Inventory write-off	80,000	23,000
Other inventory adjustments	$ 113,100	$ (169,734)

SEGMENT INFORMATION AND GEOGR_5

SEGMENT INFORMATION AND GEOGRAPHIC DATA, Net Sales by Geographic Area (Details) - USD ($)	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Net Sales by Geographic Area [Abstract]
Net sales	$ 7,926,293	$ 7,608,421
Reportable Geographical Component [Member] | United States [Member]
Net Sales by Geographic Area [Abstract]
Net sales	7,499,720	6,763,876
Reportable Geographical Component [Member] | International [Member]
Net Sales by Geographic Area [Abstract]
Net sales	$ 426,573	$ 844,545

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($)	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
FAIR VALUE MEASUREMENTS [Abstract]
Asset impairment	$ 0	$ 0

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	Sep. 30, 2020	Jun. 30, 2020
Inventories [Abstract]
Total supplies inventory	$ 82,198	$ 88,034
Total inventory	29,724,760	30,633,959
Short-term portion	8,975,998	7,443,257
Long-term portion	20,748,762	23,190,702
Work-in-process inventories issued to active production jobs	2,510,000	1,340,000
Finished Jewelry [Member]
Inventories [Abstract]
Raw materials	903,745	821,536
Work-in-process	1,535,064	602,390
Finished goods	6,565,932	6,019,985
Finished goods on consignment	2,222,092	2,297,907
Total	11,226,833	9,741,818
Loose Jewels [Member]
Inventories [Abstract]
Raw materials	2,314,759	3,526,399
Work-in-process	10,212,689	10,453,586
Finished goods	5,682,606	6,619,487
Finished goods on consignment	205,675	204,635
Total	$ 18,415,729	$ 20,804,107

RETURNS ASSET AND REFUND LIAB_2

RETURNS ASSET AND REFUND LIABILITIES (Details) - USD ($)	Sep. 30, 2020	Jun. 30, 2020
RETURNS ASSET AND REFUND LIABILITIES [Abstract]
Refund liabilities	$ 800,000	$ 704,000
Asset returns	$ 319,000	$ 289,000

ACCRUED EXPENSES AND OTHER LI_3

ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($)	Sep. 30, 2020	Jun. 30, 2020
ACCRUED EXPENSES AND OTHER LIABILITIES [Abstract]
Deferred revenue	$ 414,525	$ 794,740
Accrued compensation and related benefits	406,587	395,006
Accrued sales tax	358,339	295,651
Accrued severance	211,157	338,355
Accrued cooperative advertising	106,146	89,517
Other	1	9,063
Total accrued expenses and other liabilities	$ 1,496,755	$ 1,922,332

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
INCOME TAXES [Abstract]
Income tax expense for estimated tax, penalties, and interest for other uncertain tax positions	$ 500	$ 6,100

COMMITMENTS AND CONTINGENCIES,

COMMITMENTS AND CONTINGENCIES, Lease Arrangements (Details)	3 Months Ended		12 Months Ended
	Sep. 30, 2020USD ($)ft²Option	Sep. 30, 2019USD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	May 23, 2014USD ($)
COMMITMENTS AND CONTINGENCIES [Abstract]
Area leased under operating lease | 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
Balance Sheet Classifications of Leases [Abstract]
Noncurrent operating lease ROU assets	$ 475,113		$ 584,143
Operating Lease Liabilities [Abstract]
Current operating lease liabilities	626,763		622,493
Noncurrent operating lease liabilities	51,190		203,003
Total operating lease liabilities	677,953
Operating lease cost	$ 131,000	$ 137,000
Assumed discount rate	7.14%
Remaining operating lease term	1 year 29 days
Future Lease Payments Under Operating Leases [Abstract]
2021	$ 482,615
2022	219,723
Total lease payments	702,338
Less: imputed interest	24,385
Total operating lease liabilities	677,953
Less: current lease obligations	626,763		622,493
Total long-term lease obligations	51,190		203,003
Cash paid for operating leases	$ 170,000	$ 164,000
ROU assets obtained in exchange for new operating lease liabilities			$ 0

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES, Purchase Commitments (Details) - SiC Materials [Member] - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Purchase Commitments [Abstract]
Percentage of materials committed to be purchased	100.00%
Extension period of exclusive supply agreement	2 years
Total purchase commitment	$ 52,950
Remaining purchase commitment	36,600
Purchases	0	$ 2,490
Minimum [Member]
Purchase Commitments [Abstract]
Future minimum annual purchase commitments	4,000
Maximum [Member]
Purchase Commitments [Abstract]
Future minimum annual purchase commitments	$ 10,000

DEBT, Paycheck Protection Progr

DEBT, Paycheck Protection Program Loan (Details) - USD ($)	3 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Jun. 18, 2020
Paycheck Protection Program Loan [Abstract]
Current maturity of long-term debt	$ 386,000	$ 193,000
Long-term debt, net	$ 579,000	772,000
PPP Loan [Member]
Paycheck Protection Program Loan [Abstract]
Principal amount			$ 965,000
Fixed interest rate	1.00%
Monthly principal and interest payment	$ 41,000
Current maturity of long-term debt	386,000	193,000
Long-term debt, net	579,000	772,000
Total long-term debt	$ 965,000	$ 965,000

DEBT, Line of Credit (Details)

DEBT, Line of Credit (Details)	3 Months Ended
	Sep. 30, 2020USD ($)
White Oak Credit Facility [Member]
Line of Credit [Abstract]
Borrowing capacity	$ 5,000,000
Maturity date	Jul. 13, 2021
Interest rate premium in excess of rate otherwise applicable charged during an event of default	2.00%
Credit facility outstanding	$ 0
White Oak Credit Facility [Member] | Minimum [Member]
Line of Credit [Abstract]
Excess availability	$ 500,000
Interest rate	5.50%
Revolving Advances [Member]
Line of Credit [Abstract]
Interest rate floor	1.25%
Revolving Advances [Member] | LIBOR [Member]
Line of Credit [Abstract]
Term of variable rate	1 month
Basis spread on variable rate	3.75%
Non-Revolving Advances [Member] | LIBOR [Member]
Line of Credit [Abstract]
Basis spread on variable rate	4.75%

SHAREHOLDERS' EQUITY AND STOC_3

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION, Stock-Based Compensation (Details) - USD ($)	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Stock-Based Compensation [Abstract]
Employee stock options	$ 91,040	$ 63,876
Restricted stock awards	16,315	148,504
Total	107,355	212,380
Stock-based compensation capitalized as a cost of inventory	$ 0	$ 0

SHAREHOLDERS' EQUITY AND STOC_4

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION, Stock Option Activity (Details) - Stock Options [Member]	3 Months Ended
	Sep. 30, 2020USD ($)$ / sharesshares
Stock Option Activity [Roll Forward]
Outstanding, beginning balance (in shares) | shares	2,809,095
Granted (in shares) | shares	90,000
Expired (in shares) | shares	(56,000)
Outstanding, ending balance (in shares) | shares	2,843,095
Weighted Average Exercise Price [Roll Forward]
Outstanding, beginning balance (in dollars per share) | $ / shares	$ 1.19
Granted (in dollars per share) | $ / shares	0.73
Expired (in dollars per share) | $ / shares	1.90
Outstanding, ending balance (in dollars per share) | $ / shares	$ 1.16
Fair Value of Stock Options [Abstract]
Fair value of stock options vested | $	$ 490,000

SHAREHOLDERS' EQUITY AND STOC_5

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION, Stock Options Outstanding (Details) - Stock Options [Member] - USD ($)	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Jun. 30, 2020
Stock Options Outstanding and Exercisable [Abstract]
Options outstanding, balance as of end of period (in shares)	2,843,095		2,809,095
Options outstanding, weighted average remaining contractual life	5 years 11 months 8 days
Options outstanding, weighted average exercise price (in dollars per share)	$ 1.16		$ 1.19
Options exercisable, balance as of end of period (in shares)	2,381,458
Options exercisable, weighted average remaining contractual life	5 years 3 months 14 days
Options exercisable, weighted average exercise price (in dollars per share)	$ 1.19
Options Vested or Expected to Vest [Abstract]
Options vested or expected to vest, balance as of end of period (in shares)	2,772,524
Options vested or expected to vest, weighted average remaining contractual life	5 years 10 months 10 days
Options vested or expected to vest, weighted average exercise price (in dollars per share)	$ 1.17
Unrecognized Stock-Based Compensation Expense [Abstract]
Unrecognized stock-based compensation expense	$ 135,000
Unrecognized stock-based compensation expense, period for recognition	21 months
Options outstanding, aggregate intrinsic value	$ 115,000
Options exercisable, aggregate intrinsic value	115,000
Options vested or expected to vest, aggregate intrinsic value	$ 115,000
Options exercised (in shares)	0	0

SHAREHOLDERS' EQUITY AND STOC_6

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION, Restricted Stock Activity (Details) - Restricted Stock [Member]	3 Months Ended
	Sep. 30, 2020USD ($)$ / sharesshares
Restricted Stock Activity [Roll Forward]
Unvested, beginning balance (in shares) | shares	162,500
Granted (in shares) | shares	178,750
Canceled (in shares) | shares	(162,500)
Unvested, ending balance (in shares) | shares	178,750
Weighted Average Grant Date Fair Value [Roll Forward]
Unvested, beginning balance (in dollars per share) | $ / shares	$ 1.57
Granted (in dollars per share) | $ / shares	0.72
Canceled (in dollars per share) | $ / shares	1.57
Unvested, ending balance (in dollars per share) | $ / shares	$ 0.72
Unrecognized Stock-Based Compensation Expense [Abstract]
Unrecognized stock-based compensation expense | $	$ 112,000
Unrecognized stock-based compensation expense, period for recognition	10 months

SHAREHOLDERS' EQUITY AND STOC_7

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION, Dividends (Details)	3 Months Ended
	Sep. 30, 2020USD ($)
Dividends [Abstract]
Cash dividends	$ 0

NET INCOME PER COMMON SHARE (De

NET INCOME PER COMMON SHARE (Details) - USD ($)	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Numerator [Abstract]
Net income	$ 874,266	$ 207,319
Denominator [Abstract]
Weighted average common shares outstanding, Basic (in shares)	28,786,910	28,563,688
Effect of dilutive securities (in shares)	52,987	659,248
Weighted average common shares outstanding, Diluted (in shares)	28,839,897	29,222,936
Net income per common share [Abstract]
Basic (in dollars per share)	$ 0.03	$ 0.01
Diluted (in dollars per share)	$ 0.03	$ 0.01
Stock Options [Member]
Net Income per Common Share [Abstract]
Shares excluded from the computation of diluted net income per common share (in shares)	2,790,000	1,990,000
Restricted Stock [Member]
Net Income per Common Share [Abstract]
Shares excluded from the computation of diluted net income per common share (in shares)	179,000	325,000

MAJOR CUSTOMERS AND CONCENTRA_3

MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK (Details) - USD ($) $ in Thousands	3 Months Ended			12 Months Ended
	Sep. 30, 2020		Sep. 30, 2019	Jun. 30, 2020
Minimum [Member]
Major Customers and Concentration of Credit Risk [Abstract]
Payment terms on trade receivables	30 days
Maximum [Member]
Major Customers and Concentration of Credit Risk [Abstract]
Payment terms on trade receivables	90 days
Non-Interest-bearing Deposits [Member]
Major Customers and Concentration of Credit Risk [Abstract]
Amounts on deposit in excess of FDIC insurable limits	$ 2,770			$ 2,010
Interest-bearing Deposits [Member]
Major Customers and Concentration of Credit Risk [Abstract]
Amounts on deposit in excess of FDIC insurable limits	$ 10,640			$ 11,640
Trade Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer A [Member]
Major Customers and Concentration of Credit Risk [Abstract]
Concentration risk, percentage	26.00%			26.00%
Trade Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer B [Member]
Major Customers and Concentration of Credit Risk [Abstract]
Concentration risk, percentage	17.00%			14.00%
Trade Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer C [Member]
Major Customers and Concentration of Credit Risk [Abstract]
Concentration risk, percentage	11.00%			13.00%
Trade Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer D [Member]
Major Customers and Concentration of Credit Risk [Abstract]
Concentration risk, percentage	11.00%				[1]
Total Net Sales [Member] | Customer Concentration Risk [Member] | Customer A [Member]
Major Customers and Concentration of Credit Risk [Abstract]
Concentration risk, percentage		[2]	14.00%
Total Net Sales [Member] | Customer Concentration Risk [Member] | Customer D [Member]
Major Customers and Concentration of Credit Risk [Abstract]
Concentration risk, percentage	14.00%		13.00%
[1]	Customer D did not have individual balances that represented 10% or more of total gross accounts receivable as of September 30, 2020.
[2]	Customer D did not have net sales that represented 10% or more of total net sales for the three months ended September 30, 2020.