Charles & Colvard (CTHR) 10-Q 5 Nov 21 2022 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2021	Oct. 29, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Document Transition Report	false
Entity File Number	000-23329
Entity Registrant Name	Charles & Colvard, Ltd.
Entity Central Index Key	0001015155
Entity Incorporation, State or Country Code	NC
Entity Tax Identification Number	56-1928817
Entity Address, Address Line One	170 Southport Drive
Entity Address, City or Town	Morrisville
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	27560
City Area Code	919
Local Phone Number	468-0399
Title of 12(b) Security	Common Stock, no par value per share
Trading Symbol	CTHR
Security Exchange Name	NASDAQ
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		30,414,952

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2021	Jun. 30, 2021
Current assets:
Cash and cash equivalents	$ 14,116,632	$ 21,302,317
Restricted cash	5,050,000	144,634
Accounts receivable, net	2,671,701	1,662,074
Inventory, net	12,043,187	11,450,141
Note receivable	250,000	250,000
Prepaid expenses and other assets	1,427,801	952,065
Total current assets	35,559,321	35,761,231
Long-term assets:
Inventory, net	19,571,239	17,722,579
Property and equipment, net	1,151,725	875,897
Intangible assets, net	207,739	209,658
Operating lease right-of-use assets	3,779,395	3,952,146
Deferred income taxes, net	6,228,672	6,350,830
Other assets	49,658	49,658
Total long-term assets	30,988,428	29,160,768
TOTAL ASSETS	66,547,749	64,921,999
Current liabilities:
Accounts payable	3,752,907	2,774,373
Operating lease liabilities	612,988	566,083
Accrued expenses and other liabilities	1,700,577	2,281,807
Total current liabilities	6,066,472	5,622,263
Long-term liabilities:
Noncurrent operating lease liabilities	3,418,110	3,600,842
Accrued income taxes	10,349	9,878
Total long-term liabilities	3,428,459	3,610,720
Total liabilities	9,494,931	9,232,983
Commitments and contingencies (Note 9)
Shareholders' equity:
Common stock, no par value; 50,000,000 shares authorized; 30,339,457 and 29,913,095 shares issued and outstanding at September 30, 2021 and June 30, 2021, respectively	56,454,221	56,057,109
Additional paid-in capital	25,748,258	25,608,593
Accumulated deficit	(25,149,661)	(25,976,686)
Total shareholders' equity	57,052,818	55,689,016
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 66,547,749	$ 64,921,999

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2021	Jun. 30, 2021
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)	30,339,457	29,913,095
Common stock, shares outstanding (in shares)	30,339,457	29,913,095

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract]
Net sales	$ 10,280,311	$ 7,926,293
Costs and expenses:
Cost of goods sold	5,016,550	4,196,055
Sales and marketing	2,730,153	1,647,933
General and administrative	1,584,275	1,208,035
Total costs and expenses	9,330,978	7,052,023
Income from operations	949,333	874,270
Other income (expense):
Interest income	355	3,459
Interest expense	0	(2,439)
Loss on foreign currency exchange	(34)	(530)
Total other income (expense), net	321	490
Income before income taxes	949,654	874,760
Income tax expense	(122,629)	(494)
Net Income	$ 827,025	$ 874,266
Net income per common share:
Basic (in dollars per share)	$ 0.03	$ 0.03
Diluted (in dollars per share)	$ 0.03	$ 0.03
Weighted average number of shares used in computing net income per common share:
Basic (in shares)	29,971,178	28,786,910
Diluted (in shares)	31,097,540	28,839,897

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Total
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
Balance at Jun. 30, 2021	$ 56,057,109	25,608,593	(25,976,686)	55,689,016
Balance (in shares) at Jun. 30, 2021	29,913,095
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	$ 0	279,407	0	279,407
Issuance of restricted stock	$ 0	0	0	0
Issuance of restricted stock (in shares)	242,725
Stock option exercises	$ 397,112	(139,742)	0	257,370
Stock option exercises (in shares)	183,637
Net income	$ 0	0	827,025	827,025
Balance at Sep. 30, 2021	$ 56,454,221	$ 25,748,258	$ (25,149,661)	$ 57,052,818
Balance (in shares) at Sep. 30, 2021	30,339,457

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 827,025	$ 874,266
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	124,212	132,456
Stock-based compensation	279,407	107,355
Provision for uncollectible accounts	32,000	32,514
Provision for sales returns	27,000	96,000
Inventory write-off	232,000	80,000
Provision for accounts receivable discounts	16,419	1,688
Deferred income taxes	122,158	0
Changes in operating assets and liabilities:
Accounts receivable	(1,085,046)	(1,084,999)
Inventory	(2,673,706)	829,199
Prepaid expenses and other assets, net	(302,985)	27,920
Accounts payable	978,534	(1,165,697)
Accrued income taxes	471	494
Accrued expenses and other liabilities	(717,057)	(573,120)
Net cash used in operating activities	(2,139,568)	(641,924)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(398,121)	(101,459)
Payments for intangible assets	0	(12,142)
Net cash used in investing activities	(398,121)	(113,601)
CASH FLOWS FROM FINANCING ACTIVITIES:
Stock option exercises	257,370	0
Net cash provided by financing activities	257,370	0
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(2,280,319)	(755,525)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD	21,446,951	14,617,234
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD	19,166,632	13,861,709
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	0	2,439
Cash paid during the period for income taxes	$ 0	$ 3,350

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	3 Months Ended
	Sep. 30, 2021
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 ® The Company sells loose moissanite jewels, loose lab grown diamonds, and finished jewelry featuring both moissanite and lab grown diamonds at wholesale prices to distributors, manufacturers, retailers, and designers, including some of the largest distributors and jewelry manufacturers in the world. The Company’s finished jewelry and loose moissanite jewels and lab grown diamonds that are mounted into fine jewelry by other manufacturers are sold at retail outlets and via the Internet. The Company sells at retail prices to end-consumers through its wholly owned operating subsidiary, charlesandcolvard.com, LLC, third-party online marketplaces, drop-ship, and other pure-play, exclusively e-commerce outlets. The Company also sells at discount retail prices to end-consumers on its own transactional website, moissaniteoutlet.com, through charlesandcolvard.com, LLC.

BASIS OF PRESENTATION AND SIGNI

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Sep. 30, 2021
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 September 30, 2021 and for the three months ended September 30, 2021 and 2020 included in this Quarterly Report on Form 10-Q are unaudited. The balance sheet as of June 30, 2021 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 “2021 Annual Report”) for the fiscal year ended June 30, 2021 filed with the SEC on September 3, 2021. The accompanying condensed consolidated financial statements as of and for the three months ended September 30, 2021 and 2020, and as of the fiscal year ended June 30, 2021, 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 (HK) Ltd. previously became dormant in the second quarter of 2009 and has had no operating activity since 2008. Charles & Colvard Direct, LLC, had no operating activity during the three-month periods ended September 30, 2021 or 2020. All intercompany accounts have been eliminated. Significant Accounting Policies – Use of Estimates Cash and Cash Equivalents – Restricted Cash – In accordance with cash management process requirements related to the Company’s asset-based revolving credit facility from White Oak Commercial Finance, LLC (“White Oak”), which the Company had in place prior to obtaining the JPMorgan Chase Credit Facility, there were access and usage restrictions on certain cash deposit balances for periods of up to two 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, 2021 June 30, 2021 Cash and cash equivalents $ 14,116,632 $ 21,302,317 Restricted cash 5,050,000 144,634 Total cash, cash equivalents, and restricted cash $ 19,166,632 $ 21,446,951 Recently Adopted/Issued Accounting Pronouncements – In March 2020, and as updated in January 2021, 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 new line of credit are based on a rate equal to the one-month LIBOR. As of September 30, 2021, 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 September 30, 2021.

SEGMENT INFORMATION AND GEOGRAP

SEGMENT INFORMATION AND GEOGRAPHIC DATA	3 Months Ended
	Sep. 30, 2021
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, moissaniteoutlet.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 2021 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-downs; 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, 2021 Online Channels Traditional Total Net sales Finished jewelry $ 4,486,958 $ 1,199,329 $ 5,686,287 Loose jewels 882,847 3,711,177 4,594,024 Total $ 5,369,805 $ 4,910,506 $ 10,280,311 Product line cost of goods sold Finished jewelry $ 1,711,224 $ 623,258 $ 2,334,482 Loose jewels 314,105 1,745,341 2,059,446 Total $ 2,025,329 $ 2,368,599 $ 4,393,928 Product line gross profit Finished jewelry $ 2,775,734 $ 576,071 $ 3,351,805 Loose jewels 568,742 1,965,836 2,534,578 Total $ 3,344,476 $ 2,541,907 $ 5,886,383 Operating income $ 321,671 $ 627,662 $ 949,333 Depreciation and amortization $ 67,702 $ 56,510 $ 124,212 Capital expenditures $ 59,260 $ 338,861 $ 398,121 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 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, 2021 2020 Product line cost of goods sold $ 4,393,928 $ 3,498,211 Non-capitalized manufacturing and production control expenses 342,401 329,406 Freight out 217,506 175,338 Inventory write-off 232,000 80,000 Other inventory adjustments (169,285 ) 113,100 Cost of goods sold $ 5,016,550 $ 4,196,055

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Sep. 30, 2021
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, notes receivable, trade accounts receivable, and trade accounts payable. All financial instruments, including but not limited to the note receivable, 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, 2021 and 2020, no impairment was recorded.

INVENTORIES

INVENTORIES	3 Months Ended
	Sep. 30, 2021
INVENTORIES [Abstract]
INVENTORIES	5. INVENTORIES The Company’s total inventories, net of reserves, consisted of the following as of the dates presented: September 30, 2021 June 30, 2021 Finished jewelry: Raw materials $ 1,681,561 $ 1,476,514 Work-in-process 2,034,428 779,593 Finished goods 9,993,963 8,025,816 Finished goods on consignment 2,131,244 2,050,372 Total finished jewelry $ 15,841,196 $ 12,332,295 Loose jewels: Raw materials $ 1,683,330 $ 1,775,505 Work-in-process 9,058,183 9,893,443 Finished goods 4,783,702 4,942,192 Finished goods on consignment 169,879 154,968 Total loose jewels 15,695,094 16,766,108 Total supplies inventory 78,136 74,317 Total inventory $ 31,614,426 $ 29,172,720 As of the dates presented, the Company’s total inventories, net of reserves, are classified as follows: September 30, 2021 June 30, 2021 Short-term portion $ 12,043,187 $ 11,450,141 Long-term portion 19,571,239 17,722,579 Total $ 31,614,426 $ 29,172,720 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, 2021 and June 30, 2021, work-in-process inventories issued to active production jobs approximated $2.95 million and $2.23 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 the Company uses 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, including the effect of market factors and sales trends. .

NOTE RECEIVABLE

NOTE RECEIVABLE	3 Months Ended
	Sep. 30, 2021
NOTE RECEIVABLE [Abstract]
NOTE RECEIVABLE	6. NOTE RECEIVABLE In March 2021, the Company entered into a $250,000 convertible promissory note agreement (the “ Convertible Promissory Not e”) with an unrelated third-party strategic marketing partner. The Convertible Promissory Note is unsecured and matures on March 5, 2022 (the “Maturity Date”). Convertible is accrued at a simple rate of 0.14% per annum and will accrue until the Convertible Promissory Note is converted in accordance with the conversion privileges contained within the Convertible Promissory Note or is repaid. Convertible Promissory Note Subject to the borrower’s completion of a specified equity financing transaction (an “Equity Financing”) on or prior to the Maturity Date, the unpaid principal amount, including accrued and unpaid interest, automatically converts into equity units of the most senior class of equity securities issued to investors in the Equity Financing at the lesser of 80% of the per unit price of the units purchased by investors or the price equal to $33,500,000 divided by the aggregate number of outstanding units of the borrower immediately prior to the closing of the financing. Unless converted as provided in the Convertible Promissory Note, the principal amount, including accrued and unpaid interest, will, on the Maturity Date, at the Company’s option either ( i ii

ACCRUED EXPENSES AND OTHER LIAB

ACCRUED EXPENSES AND OTHER LIABILITIES	3 Months Ended
	Sep. 30, 2021
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, 2021 June 30, 2021 Accrued sales tax $ 658,863 $ 555,547 Deferred revenue 559,150 774,891 Accrued compensation and related benefits 303,675 866,705 Accrued cooperative advertising 80,681 68,185 Accrued income taxes 16,478 16,478 Other 81,730 1 Total accrued expenses and other liabilities $ 1,700,577 $ 2,281,807

INCOME TAXES

INCOME TAXES	3 Months Ended
	Sep. 30, 2021
INCOME TAXES [Abstract]
INCOME TAXES	8. INCOME TAXES For the three months ended September 30, 2021, the Company’s statutory tax rate was 22.24% and consisted of the federal income tax rate of 21% and a blended state income tax rate of 1.24%, net of the federal benefit. For the three months ended September 30, 2020, the Company’s statutory tax rate was 22.11% and consisted of the federal income tax rate of 21% and a blended state income tax rate of 1.11%, net of the federal benefit. The Company’s effective income tax rate reflects the effect of federal and state income taxes on earnings and the impact of differences in book and tax accounting arising primarily from the permanent tax benefits associated with stock compensation transactions during the quarter. For the three months ended September 30, 2021, the Company’s effective tax rate was 12.91%. 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 June 30, 2021, cumulative positive taxable income over the last three tax years had been generated in the U.S., as compared to the negative evidence of cumulative losses in previous years. The Company’s management also determined that its expectations of future taxable income in upcoming tax years, including estimated growth rates applied to future expected taxable income that included significant management estimates and assumptions, would be sufficient to result in full utilization of the Company’s federal net operating loss carryforwards and certain of the deferred tax assets prior to any statutory expiration. As a result, the Company’s management determined that sufficient positive evidence existed as of June 30, 2021, to conclude that it was more likely than not deferred tax assets of approximately $6.35 million would be realizable, and it reduced the Company’s valuation allowance accordingly. Accordingly, the Company recognized a net income tax expense of approximately $123,000 for the three months ended September 30, 2021, compared with a net income tax expense of $500 for the three months ended September 30, 2020. With the reduction of its valuation allowance during the fiscal year ended June 30, 2021, the Company records estimated taxes, penalties, and interest associated with uncertain tax positions as income tax expense and recognized such expense related to these items of approximately $500 for each of the three months ended September 30, 2021 and 2020. As of September 30, 2021, the Company’s management determined that its expectations of future taxable income in upcoming tax years, including estimated growth rates applied to future expected taxable income that includes significant management estimates and assumptions, would continue to be sufficient to result in full utilization of the Company’s remaining federal net operating loss carryforwards and certain of the deferred tax assets prior to any statutory expiration. As a result, the Company’s management determined that sufficient positive evidence existed as of September 30, 2021, to conclude that it is more likely than not deferred tax assets of approximately $6.23 million remain realizable. Conversely, the Company’s management further determined that sufficient negative evidence continued to exist to conclude it was uncertain that the Company would have sufficient future taxable income to utilize certain of its deferred tax assets. Therefore, the Company continued to maintain a valuation allowance against the deferred tax assets relating to certain state net operating loss carryforwards from the Company’s e-commerce subsidiary due to the timing uncertainty of when it will generate positive taxable income to utilize the associated deferred tax assets. In addition, a valuation allowance remains against certain deferred tax assets relating to operating loss carryforwards relating to the Company’s dormant subsidiary located in Hong Kong.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Sep. 30, 2021
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, April 15, 2014, and January 29, 2021 (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 expiration date of the base term of the Lease Agreement in effect as of September 30, 2021 is October 31, 2026 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 an option to extend the lease term for a period of five years. 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. Upon execution of the third amendment to the Lease Agreement (the “Lease Amendment”) on January 29, 2021, the Lease Amendment included a rent abatement in the amount of approximately $214,000, which is reflected in the rent payments used in the calculation of the right-of-use (“ROU”) asset and lease liability once remeasured upon the execution of the Lease Amendment to extend the lease term. The Lease Amendment also included an allowance for leasehold improvements offered by the landlord in an amount not to exceed approximately $545,000. Once such costs have been incurred, the Company will be reimbursed for qualified costs by the landlord and the Company will reduce the remaining ROU asset and lease liability by the amount of the reimbursement. Such reductions of the ROU asset and lease liability will be recognized prospectively by the Company over the remaining term of the lease. 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, 2021, the Company’s balance sheet classifications of its leases are as follows: Operating Leases: Noncurrent operating lease ROU assets $ 3,779,395 Current operating lease liabilities $ 612,988 Noncurrent operating lease liabilities 3,418,110 Total operating lease liabilities $ 4,031,098 The Company’s total operating lease cost for the three months ended September 30, 2021 and 2020 was approximately $202,000 and $131,000, respectively. As of September 30, 2021, the Company’s estimated incremental borrowing rate used and assumed discount rate with respect to operating leases was 2.81% and the remaining operating lease term was 5.08 years. As of September 30, 2021, the Company’s remaining future payments under operating leases for each fiscal year ending June 30 are as follows: 2022 $ 410,799 2023 869,742 2024 893,660 2025 918,236 2026 943,487 2027 317,327 Total lease payments 4,353,251 Less: imputed interest 322,153 Present value of lease payments 4,031,098 Less: current lease obligations 612,988 Total long-term lease obligations $ 3,418,110 The Company makes cash payments for amounts included in the measurement of its lease liabilities. During the three months ended September 30, 2021 and 2020, cash paid for operating leases was approximately $162,000 and $170,000, respectively. Upon the execution of the Lease Amendment, the Company recorded additional ROU assets in the amount of approximately $3.9 million obtained in exchange for the additional operating lease liability during the fiscal year ended June 30, 2021. Purchase Commitments On December 12, 2014, the Company entered into an exclusive supply agreement (the “Supply Agreement”) with Cree, Inc., now known as Wolfspeed, Inc. (“Wolfspeed”). Under the Supply Agreement, subject to certain terms and conditions, the Company agreed to exclusively purchase from Wolfspeed, and Wolfspeed 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 Wolfspeed 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) spread the Company’s total purchase commitment under the Supply Agreement in the amount of approximately $52.95 million over the term of the Supply Agreement, as amended; (ii) establish a process by which Wolfspeed has agreed to accept purchase orders in excess of the agreed-upon minimum purchase commitment, subject to certain conditions; and (iii) permit the Company to purchase revised amounts of SiC materials from third parties under limited conditions. The Company’s total purchase commitment under the Supply Agreement, as amended, until June 2025 is approximately $52.95 million, of which approximately $31.35 million remains to be purchased as of September 30, 2021. Over the life of the Supply Agreement, as amended, the Company’s future minimum annual purchase commitments of SiC crystals range from approximately $4.00 million to $10.00 million each year. During the three months ended September 30, 2021, the Company purchased approximately $1.50 million of SiC crystals from Wolfspeed pursuant to the terms of the Supply Agreement, as amended. During the three months ended September 30, 2020, the Company did not purchase SiC crystals from Wolfspeed pursuant to the terms of the Supply Agreement, as amended. COVID-19 Update The COVID-19 pandemic continues to present unprecedented business challenges in the Company’s fiscal year ending June 30, 2022 (“Fiscal 2022”). 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 its expenses, and support its community in addressing the challenges posed by the ongoing COVID-19 pandemic. The Company has experienced impacts on its business related to the COVID-19 pandemic, primarily in increased coronavirus-related costs, including using accelerated payments in some cases to the Company’s suppliers that are due by their terms in future periods and the Company expects to continue accelerating payments to certain suppliers through at least a portion of Fiscal 2022. The Company is also seeing a sharp increase in international freight costs, with limited availability and long delays causing disruption in the global supply chain. Accordingly, the Company’s management is taking steps where possible to mitigate such potential delays in supplier deliveries by accelerating orders and increasing order quantities. Following the government mandated shut down during the early days of the pandemic, work in the Company’s production and distribution facilities has continued throughout the remainder of the pandemic, consistent with guidance from federal, state, and local officials to minimize the spread of COVID-19. The Company’s management continues to take actions to equip its employees with personal protective equipment, establish minimum staffing and social distancing policies, sanitize workspaces more frequently, adopt alternate work schedules, and institute other measures aimed to sustain production and related services while minimizing the transmission of COVID-19, including measures to facilitate the provision of vaccines to the Company’s employees in line with state and local guidelines. In addition, the Company has maintained a flexible teleworking policy for its employees who can meet customer commitments remotely, and a portion of the Company’s workforce continues teleworking. Although the COVID-19 pandemic did not have a significant adverse impact on the Company’s financial results in the quarter ended September 30, 2021, the ultimate impact of COVID-19 on the Company’s operations and financial performance in future periods, including management’s ability to execute its strategic initiatives in the expected timeframes, remains uncertain and will depend on future pandemic related developments, including the duration of the pandemic, any potential subsequent waves of COVID-19 and its variant viral infections, the effectiveness, distribution and acceptance of COVID-19 vaccines, and related government actions to prevent and manage disease spread, all of which are uncertain and cannot be predicted. The Company cannot at this time predict the full impact of the COVID-19 pandemic, but the Company’s management believes there is a risk that the COVID-19 pandemic could adversely impact the Company’s business, financial condition, results of operations and/or cash flows in Fiscal 2022.

DEBT

DEBT	3 Months Ended
	Sep. 30, 2021
DEBT [Abstract]
DEBT	10. DEBT Line of Credit Effective July 7, the Company obtained from JPMorgan Chase Bank, N.A. (“JPMorgan Chase”) a cash collateralized line of credit facility (the “JPMorgan Chase Credit Facility”). The JPMorgan Chase Credit Facility may be used for general corporate and working capital purposes, including permitted acquisitions and certain additional indebtedness for obligations under capital and operating leases. JPMorgan Chase Credit Facility is secured by a cash deposit in the amount of held by JPMorgan Chase as collateral for the . Each advance accrues interest at a rate equal to JPMorgan Chase’s monthly LIBOR rate multiplied by a statutory reserve rate for eurocurrency funding to which JPMorgan Chase is subject with respect to the adjusted LIBOR rate as established by the U.S. Federal Reserve Board, plus a margin of 1.25% per annum. Interest is calculated monthly on an actual/ day basis and payable monthly in arrears. Principal outstanding during an event of default, at JPMorgan Chase’s option, accrues interest at a rate of 3% per annum in excess of the above rate. Any advance may be prepaid in whole or in part without penalty at any time. As of September 30, 2021, the Company had not borrowed against the JPMorgan Chase Credit Facility. Prior to obtaining the JPMorgan Chase Credit Facility, the Company and its wholly owned subsidiary, charlesandcolvard.com, LLC (collectively, the “Borrowers”), had a $5.00 million asset-based revolving credit facility (the “White Oak Credit Facility”) from White Oak Commercial Finance, LLC (“White Oak”), which was terminated by the Company in accordance with its terms as of July The effective date of the White Oak Credit Facility was July and it was scheduled to mature on July 13, 2021 Available advances could have been in the form of either revolving or non-revolving . During the first year of the term of the White Oak Credit Facility, any revolving advances would have accrued interest at a rate equal to one-month LIBOR (reset monthly, and subject to a floor) plus 3.75% , and any non-revolving advances would have accrued interest at such LIBOR rate plus . Thereafter, the interest margins would have been reduced upon the Company’s achievement of a specified fixed charge coverage ratio during the period of any outstanding advances. However, any advances were in all cases subject to a minimum interest rate of and interest would have been calculated on an actual/ basis and payable monthly in arrears. Principal outstanding during an event of default, which did not occur during the term of the White Oak would have accrued interest at a rate in excess of the rate that would have been otherwise applicable The Company had not borrowed against the White Oak Credit Facility . Paycheck Protection Program Loan On June 18, 2020, the Company received the proceeds from a loan pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), as administered by the U.S. Small Business Administration (the “SBA”) . The loan in the principal amount of was disbursed by the Lender pursuant to a promissory note issued by the Company (the “Promissory Note”) on June Pursuant to its terms, the Promissory Note was scheduled to mature on June 18, 2022. However, on June in accordance with applicable provisions of the CARES Act the Company filed its PPP Loan forgiveness application with the Lender for forgiveness of the full amount of the PPP Loan proceeds . Effective June the Company’s PPP Loan forgiveness was approved and processed by the SBA for the full principal of the PPP Loan in the amount of . Accordingly, the full amount of the gain in connection with the extinguishment of this debt was recognized in the In accordance with the terms of the Promissory Note, during the period of time the principal of the PPP Loan was outstanding, interest was accrued by the Company at a fixed rate of 1% per annum. In connection with the Company’s PPP Loan forgiveness, the SBA also approved forgiveness of accrued interest amounts that would have been otherwise payable by the Company to the Lender. Accordingly, the benefit from the forgiveness of the inception to-date interest expense in the amount of approximately was recognized and included within the gain on extinguishment of debt in the consolidated statement of operations for the fiscal year ended June The Company has no outstanding debt as of September 30, 2021.

SHAREHOLDERS' EQUITY AND STOCK-

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION	3 Months Ended
	Sep. 30, 2021
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, 2021 2020 Employee stock options $ 69,565 $ 91,040 Restricted stock awards 209,842 16,315 Totals $ 279,407 $ 107,355 No stock-based compensation was capitalized as a cost of inventory during the three months ended September 30, 2021 or 2020. Stock Options – Shares Weighted Average Exercise Price Outstanding, June 30, 2021 2,235,286 $ 1.24 Granted 72,500 $ 2.67 Exercised (183,637 ) $ 1.40 Forfeited (14,584 ) $ 0.89 Expired (49,079 ) $ 1.27 Outstanding, September 30, 2021 2,060,486 $ 1.28 The total fair value of stock options that vested during the three months ended September 30, 2021 was approximately $38,000. The following table summarizes information about stock options outstanding at September 30, 2021: Options Outstanding Options Exercisable Options Vested or Expected to Vest Balance as of 9/30/2021 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Balance as of 9/30/2021 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Balance as of 9/30/2021 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price 2,060,486 6.35 $ 1.28 1,525,774 5.42 $ 1.30 1,988,851 6.26 $ 1.28 As of September 30, 2021, the unrecognized stock-based compensation expense related to unvested stock options was approximately $208,000, which is expected to be recognized over a weighted average period of approximately 25 months. The aggregate intrinsic value of stock options outstanding, exercisable, and vested or expected to vest at September 30, 2021 was approximately $1.53 million. These amounts are before applicable income taxes and represents the closing market price of the Company’s common stock at September 30, 2021 less the grant price, multiplied by the number of stock options that had a grant price that is less than the closing market price. These values represent 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 Restricted Stock – Shares Weighted Average Grant Date Fair Value Unvested, June 30, 2021 178,750 $ 0.72 Granted 242,725 $ 2.75 Vested (242,725 ) $ 1.25 Unvested, September 30, 2021 178,750 $ 2.75 The unvested restricted shares as of September 30, 2021 are all performance-based restricted shares that are scheduled to vest, subject to achievement of the underlying performance goals, in July 2022. As of September 30, 2021, the estimated unrecognized stock-based compensation expense related to unvested restricted shares subject to achievement of performance goals was approximately $468,000, 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, 2021.

NET INCOME PER COMMON SHARE

NET INCOME PER COMMON SHARE	3 Months Ended
	Sep. 30, 2021
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, 2021 2020 Numerator: Net income $ 827,025 $ 874,266 Denominator: Weighted average common shares outstanding: Basic 29,971,178 28,786,910 Effect of dilutive securities 1,126,362 52,987 Diluted 31,097,540 28,839,897 Net income per common share: Basic $ 0.03 $ 0.03 Diluted $ 0.03 $ 0.03 For the three months ended September 30, 2021 and 2020, stock options to purchase approximately 934,000 and 2.79 million shares, respectively,

MAJOR CUSTOMERS AND CONCENTRATI

MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK	3 Months Ended
	Sep. 30, 2021
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 banks and trade accounts receivable. The Company places cash deposits with federally insured financial institutions and maintains its cash at banks and financial institutions it considers to be of high credit quality. However, the Company’s cash deposits may at times exceed the Federal Deposit Insurance Corporation’s insurable limits. Accordingly, balances in excess of federally insured limitations may not be insured. The Company has not experienced losses on these accounts, and management believes that the Company is not exposed to significant risks on such accounts. 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, 2021 June 30, 2021 Customer A 31 % 30 % Customer B 24 % 22 % Customer C 12 % * % Customer D ** % 14 % * Customer C did not have individual balances that represented 10% or more of total gross accounts receivable as of June 30, 2021. ** Customer D did not have individual balances that represented 10% or more of total gross accounts receivable as of September 30, 2021. 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, 2021 2020 Customer A 14 % * % Customer B 19 % 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, 2021
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 September 30, 2021 and for the three months ended September 30, 2021 and 2020 included in this Quarterly Report on Form 10-Q are unaudited. The balance sheet as of June 30, 2021 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 “2021 Annual Report”) for the fiscal year ended June 30, 2021 filed with the SEC on September 3, 2021.
Principles of Consolidation	The accompanying condensed consolidated financial statements as of and for the three months ended September 30, 2021 and 2020, and as of the fiscal year ended June 30, 2021, 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 (HK) Ltd. previously became dormant in the second quarter of 2009 and has had no operating activity since 2008. Charles & Colvard Direct, LLC, had no operating activity during the three-month periods ended September 30, 2021 or 2020. All intercompany accounts have been eliminated.
Use of Estimates	Use of Estimates
Cash and Cash Equivalents	Cash and Cash Equivalents –
Restricted Cash	Restricted Cash – In accordance with cash management process requirements related to the Company’s asset-based revolving credit facility from White Oak Commercial Finance, LLC (“White Oak”), which the Company had in place prior to obtaining the JPMorgan Chase Credit Facility, there were access and usage restrictions on certain cash deposit balances for periods of up to two 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, 2021 June 30, 2021 Cash and cash equivalents $ 14,116,632 $ 21,302,317 Restricted cash 5,050,000 144,634 Total cash, cash equivalents, and restricted cash $ 19,166,632 $ 21,446,951
Recently Adopted/Issued Accounting Pronouncements	Recently Adopted/Issued Accounting Pronouncements – In March 2020, and as updated in January 2021, 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 new line of credit are based on a rate equal to the one-month LIBOR. As of September 30, 2021, 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 September 30, 2021.

BASIS OF PRESENTATION AND SIG_3

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Sep. 30, 2021
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, 2021 June 30, 2021 Cash and cash equivalents $ 14,116,632 $ 21,302,317 Restricted cash 5,050,000 144,634 Total cash, cash equivalents, and restricted cash $ 19,166,632 $ 21,446,951

SEGMENT INFORMATION AND GEOGR_2

SEGMENT INFORMATION AND GEOGRAPHIC DATA (Tables)	3 Months Ended
	Sep. 30, 2021
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, 2021 Online Channels Traditional Total Net sales Finished jewelry $ 4,486,958 $ 1,199,329 $ 5,686,287 Loose jewels 882,847 3,711,177 4,594,024 Total $ 5,369,805 $ 4,910,506 $ 10,280,311 Product line cost of goods sold Finished jewelry $ 1,711,224 $ 623,258 $ 2,334,482 Loose jewels 314,105 1,745,341 2,059,446 Total $ 2,025,329 $ 2,368,599 $ 4,393,928 Product line gross profit Finished jewelry $ 2,775,734 $ 576,071 $ 3,351,805 Loose jewels 568,742 1,965,836 2,534,578 Total $ 3,344,476 $ 2,541,907 $ 5,886,383 Operating income $ 321,671 $ 627,662 $ 949,333 Depreciation and amortization $ 67,702 $ 56,510 $ 124,212 Capital expenditures $ 59,260 $ 338,861 $ 398,121 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
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, 2021 2020 Product line cost of goods sold $ 4,393,928 $ 3,498,211 Non-capitalized manufacturing and production control expenses 342,401 329,406 Freight out 217,506 175,338 Inventory write-off 232,000 80,000 Other inventory adjustments (169,285 ) 113,100 Cost of goods sold $ 5,016,550 $ 4,196,055
Net Sales by Geographic Area	The following presents net sales data by geographic area: Three Months Ended September 30, 2021 2020 Net sales: United States $ 9,824,730 $ 7,499,720 International 455,581 426,573 Total $ 10,280,311 $ 7,926,293

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Sep. 30, 2021
INVENTORIES [Abstract]
Inventories	The Company’s total inventories, net of reserves, consisted of the following as of the dates presented: September 30, 2021 June 30, 2021 Finished jewelry: Raw materials $ 1,681,561 $ 1,476,514 Work-in-process 2,034,428 779,593 Finished goods 9,993,963 8,025,816 Finished goods on consignment 2,131,244 2,050,372 Total finished jewelry $ 15,841,196 $ 12,332,295 Loose jewels: Raw materials $ 1,683,330 $ 1,775,505 Work-in-process 9,058,183 9,893,443 Finished goods 4,783,702 4,942,192 Finished goods on consignment 169,879 154,968 Total loose jewels 15,695,094 16,766,108 Total supplies inventory 78,136 74,317 Total inventory $ 31,614,426 $ 29,172,720 As of the dates presented, the Company’s total inventories, net of reserves, are classified as follows: September 30, 2021 June 30, 2021 Short-term portion $ 12,043,187 $ 11,450,141 Long-term portion 19,571,239 17,722,579 Total $ 31,614,426 $ 29,172,720

ACCRUED EXPENSES AND OTHER LI_2

ACCRUED EXPENSES AND OTHER LIABILITIES (Tables)	3 Months Ended
	Sep. 30, 2021
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, 2021 June 30, 2021 Accrued sales tax $ 658,863 $ 555,547 Deferred revenue 559,150 774,891 Accrued compensation and related benefits 303,675 866,705 Accrued cooperative advertising 80,681 68,185 Accrued income taxes 16,478 16,478 Other 81,730 1 Total accrued expenses and other liabilities $ 1,700,577 $ 2,281,807

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Sep. 30, 2021
COMMITMENTS AND CONTINGENCIES [Abstract]
Balance Sheet Classifications of Leases	As of September 30, 2021, the Company’s balance sheet classifications of its leases are as follows: Operating Leases: Noncurrent operating lease ROU assets $ 3,779,395 Current operating lease liabilities $ 612,988 Noncurrent operating lease liabilities 3,418,110 Total operating lease liabilities $ 4,031,098
Remaining Future Payments Under Operating Leases	As of September 30, 2021, the Company’s remaining future payments under operating leases for each fiscal year ending June 30 are as follows: 2022 $ 410,799 2023 869,742 2024 893,660 2025 918,236 2026 943,487 2027 317,327 Total lease payments 4,353,251 Less: imputed interest 322,153 Present value of lease payments 4,031,098 Less: current lease obligations 612,988 Total long-term lease obligations $ 3,418,110

SHAREHOLDERS' EQUITY AND STOC_2

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Sep. 30, 2021
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, 2021 2020 Employee stock options $ 69,565 $ 91,040 Restricted stock awards 209,842 16,315 Totals $ 279,407 $ 107,355
Stock Option Activity	Stock Options – Shares Weighted Average Exercise Price Outstanding, June 30, 2021 2,235,286 $ 1.24 Granted 72,500 $ 2.67 Exercised (183,637 ) $ 1.40 Forfeited (14,584 ) $ 0.89 Expired (49,079 ) $ 1.27 Outstanding, September 30, 2021 2,060,486 $ 1.28
Stock Options Outstanding	The following table summarizes information about stock options outstanding at September 30, 2021: Options Outstanding Options Exercisable Options Vested or Expected to Vest Balance as of 9/30/2021 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Balance as of 9/30/2021 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Balance as of 9/30/2021 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price 2,060,486 6.35 $ 1.28 1,525,774 5.42 $ 1.30 1,988,851 6.26 $ 1.28
Restricted Stock Activity	Restricted Stock – Shares Weighted Average Grant Date Fair Value Unvested, June 30, 2021 178,750 $ 0.72 Granted 242,725 $ 2.75 Vested (242,725 ) $ 1.25 Unvested, September 30, 2021 178,750 $ 2.75

NET INCOME PER COMMON SHARE (Ta

NET INCOME PER COMMON SHARE (Tables)	3 Months Ended
	Sep. 30, 2021
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, 2021 2020 Numerator: Net income $ 827,025 $ 874,266 Denominator: Weighted average common shares outstanding: Basic 29,971,178 28,786,910 Effect of dilutive securities 1,126,362 52,987 Diluted 31,097,540 28,839,897 Net income per common share: Basic $ 0.03 $ 0.03 Diluted $ 0.03 $ 0.03

MAJOR CUSTOMERS AND CONCENTRA_2

MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK (Tables)	3 Months Ended
	Sep. 30, 2021
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, 2021 June 30, 2021 Customer A 31 % 30 % Customer B 24 % 22 % Customer C 12 % * % Customer D ** % 14 % * Customer C did not have individual balances that represented 10% or more of total gross accounts receivable as of June 30, 2021. ** Customer D did not have individual balances that represented 10% or more of total gross accounts receivable as of September 30, 2021. 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, 2021 2020 Customer A 14 % * % Customer B 19 % 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_4

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES, Restricted Cash (Details) - USD ($)	3 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Sep. 30, 2020	Jun. 30, 2020
Cash, Cash Equivalents and Restricted Cash [Abstract]
Cash and cash equivalents	$ 14,116,632	$ 21,302,317
Restricted cash	5,050,000	144,634
Total cash, cash equivalents, and restricted cash	19,166,632	$ 21,446,951	$ 13,861,709	$ 14,617,234
JPMorgan Chase Credit Facility [Member]
Restricted Cash [Abstract]
Borrowing capacity	5,000,000
Cash deposit	5,050,000
White Oak Credit Facility [Member]
Restricted Cash [Abstract]
Borrowing capacity	$ 5,000,000
White Oak Credit Facility [Member] | Maximum [Member]
Restricted Cash [Abstract]
Restriction period on access and usage of certain cash deposit balances	2 days

BASIS OF PRESENTATION AND SIG_5

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES, Recently Adopted/Issued Accounting Pronouncements (Details) - JPMorgan Chase Credit Facility [Member]	3 Months Ended
	Sep. 30, 2021USD ($)
Recently Adopted/Issued Accounting Pronouncements [Abstract]
Borrowings against line of credit	$ 0
LIBOR [Member]
Recently Adopted/Issued Accounting Pronouncements [Abstract]
Term of variable rate	1 month

SEGMENT INFORMATION AND GEOGR_3

SEGMENT INFORMATION AND GEOGRAPHIC DATA, Summary Financial Information by Reportable Segment (Details)	3 Months Ended
	Sep. 30, 2021USD ($)Segment	Sep. 30, 2020USD ($)
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	$ 10,280,311	$ 7,926,293
Product line cost of goods sold	5,016,550	4,196,055
Operating income	949,333	874,270
Depreciation and amortization	124,212	132,456
Capital expenditures	398,121	101,459
Product Line [Member]
Summary Information by Reportable Segment [Abstract]
Product line cost of goods sold	4,393,928	3,498,211
Product line gross profit	5,886,383	4,428,082
Finished Jewelry [Member]
Summary Information by Reportable Segment [Abstract]
Net sales	5,686,287	4,335,338
Product line cost of goods sold	2,334,482	1,754,289
Product line gross profit	3,351,805	2,581,049
Loose Jewels [Member]
Summary Information by Reportable Segment [Abstract]
Net sales	4,594,024	3,590,955
Product line cost of goods sold	2,059,446	1,743,922
Product line gross profit	2,534,578	1,847,033
Operating and Reportable Segments [Member] | Online Channels [Member]
Summary Information by Reportable Segment [Abstract]
Net sales	5,369,805	4,465,295
Product line cost of goods sold	2,025,329	1,646,072
Product line gross profit	3,344,476	2,819,223
Operating income	321,671	774,665
Depreciation and amortization	67,702	54,352
Capital expenditures	59,260	59,250
Operating and Reportable Segments [Member] | Online Channels [Member] | Finished Jewelry [Member]
Summary Information by Reportable Segment [Abstract]
Net sales	4,486,958	3,623,462
Product line cost of goods sold	1,711,224	1,333,383
Product line gross profit	2,775,734	2,290,079
Operating and Reportable Segments [Member] | Online Channels [Member] | Loose Jewels [Member]
Summary Information by Reportable Segment [Abstract]
Net sales	882,847	841,833
Product line cost of goods sold	314,105	312,689
Product line gross profit	568,742	529,144
Operating and Reportable Segments [Member] | Traditional [Member]
Summary Information by Reportable Segment [Abstract]
Net sales	4,910,506	3,460,998
Product line cost of goods sold	2,368,599	1,852,139
Product line gross profit	2,541,907	1,608,859
Operating income	627,662	99,605
Depreciation and amortization	56,510	78,103
Capital expenditures	338,861	42,209
Operating and Reportable Segments [Member] | Traditional [Member] | Finished Jewelry [Member]
Summary Information by Reportable Segment [Abstract]
Net sales	1,199,329	711,876
Product line cost of goods sold	623,258	420,906
Product line gross profit	576,071	290,970
Operating and Reportable Segments [Member] | Traditional [Member] | Loose Jewels [Member]
Summary Information by Reportable Segment [Abstract]
Net sales	3,711,177	2,749,122
Product line cost of goods sold	1,745,341	1,431,233
Product line gross profit	$ 1,965,836	$ 1,317,889

SEGMENT INFORMATION AND GEOGR_4

SEGMENT INFORMATION AND GEOGRAPHIC DATA, Reconciliation of Cost of Goods Sold (Details) - USD ($)	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Reconciliation of Cost of Goods Sold [Abstract]
Cost of goods sold	$ 5,016,550	$ 4,196,055
Inventory write-off	232,000	80,000
Product Line [Member]
Reconciliation of Cost of Goods Sold [Abstract]
Cost of goods sold	4,393,928	3,498,211
Segment Reconciling Item [Member]
Reconciliation of Cost of Goods Sold [Abstract]
Non-capitalized manufacturing and production control expenses	342,401	329,406
Freight out	217,506	175,338
Inventory write-off	232,000	80,000
Other inventory adjustments	$ (169,285)	$ 113,100

SEGMENT INFORMATION AND GEOGR_5

SEGMENT INFORMATION AND GEOGRAPHIC DATA, Net Sales by Geographic Area (Details) - USD ($)	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Net Sales by Geographic Area [Abstract]
Net sales	$ 10,280,311	$ 7,926,293
Reportable Geographical Component [Member] | United States [Member]
Net Sales by Geographic Area [Abstract]
Net sales	9,824,730	7,499,720
Reportable Geographical Component [Member] | International [Member]
Net Sales by Geographic Area [Abstract]
Net sales	$ 455,581	$ 426,573

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($)	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
FAIR VALUE MEASUREMENTS [Abstract]
Asset impairment	$ 0	$ 0

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	Sep. 30, 2021	Jun. 30, 2021
Inventories [Abstract]
Total supplies inventory	$ 78,136	$ 74,317
Total inventory	31,614,426	29,172,720
Short-term portion	12,043,187	11,450,141
Long-term portion	19,571,239	17,722,579
Work-in-process inventories issued to active production jobs	2,950,000	2,230,000
Finished Jewelry [Member]
Inventories [Abstract]
Raw materials	1,681,561	1,476,514
Work-in-process	2,034,428	779,593
Finished goods	9,993,963	8,025,816
Finished goods on consignment	2,131,244	2,050,372
Total	15,841,196	12,332,295
Loose Jewels [Member]
Inventories [Abstract]
Raw materials	1,683,330	1,775,505
Work-in-process	9,058,183	9,893,443
Finished goods	4,783,702	4,942,192
Finished goods on consignment	169,879	154,968
Total	$ 15,695,094	$ 16,766,108

NOTE RECEIVABLE (Details)

NOTE RECEIVABLE (Details) - Convertible Promissory Note [Member] - USD ($)	Sep. 30, 2021	Mar. 31, 2021
Note Receivable [Abstract]
Note receivable		$ 250,000
Interest rate	0.14%
Interest rate during event of default	5.00%
Percentage of per unit price of units purchased by investors	80.00%
Value used to compute equity securities received upon conversion	$ 33,500,000

ACCRUED EXPENSES AND OTHER LI_3

ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($)	Sep. 30, 2021	Jun. 30, 2021
ACCRUED EXPENSES AND OTHER LIABILITIES [Abstract]
Accrued sales tax	$ 658,863	$ 555,547
Deferred revenue	559,150	774,891
Accrued compensation and related benefits	303,675	866,705
Accrued cooperative advertising	80,681	68,185
Accrued income taxes	16,478	16,478
Other	81,730	1
Total accrued expenses and other liabilities	$ 1,700,577	$ 2,281,807

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2021
INCOME TAXES [Abstract]
Combined federal and state statutory tax rate	22.24%	22.11%
Federal income tax rate	21.00%	21.00%
State income tax rate	1.24%	1.11%
Effective tax rate	12.91%
Deferred tax assets	$ 6,228,672		$ 6,350,830
Income tax expense	122,629	$ 494
Deferred income tax expense	122,158	0
Income tax expense (benefit) for estimated tax, penalties, and interest for other uncertain tax positions	$ 500	$ 500

COMMITMENTS AND CONTINGENCIES,

COMMITMENTS AND CONTINGENCIES, Lease Arrangements (Details)	Jan. 29, 2021USD ($)	Sep. 30, 2021USD ($)ft²	Sep. 30, 2020USD ($)	Jun. 30, 2021USD ($)	Mar. 31, 2021USD ($)
COMMITMENTS AND CONTINGENCIES [Abstract]
Area leased under operating lease | ft²		36,350
Period of extension on option		5 years
Minimum notice period for extension of lease term		270 days
Rent abatement	$ 214,000
Allowance for leasehold improvements	$ 545,000
Balance Sheet Classifications of Leases [Abstract]
Noncurrent operating lease ROU assets		$ 3,779,395		$ 3,952,146	$ 3,779,395
Operating Lease Liabilities [Abstract]
Current operating lease liabilities		612,988		566,083	612,988
Noncurrent operating lease liabilities		3,418,110		3,600,842	3,418,110
Total operating lease liabilities		4,031,098			4,031,098
Operating lease cost		$ 202,000	$ 131,000
Assumed discount rate		2.81%
Remaining operating lease term		5 years 29 days
Future Lease Payments Under Operating Leases [Abstract]
2022		$ 410,799
2023		869,742
2024		893,660
2025		918,236
2026		943,487
2027		317,327
Total lease payments		4,353,251
Less: imputed interest		322,153
Total operating lease liabilities		4,031,098			4,031,098
Less: current lease obligations		612,988		566,083	612,988
Total long-term lease obligations		3,418,110		3,600,842	$ 3,418,110
Cash paid for operating leases		$ 162,000	$ 170,000
ROU assets obtained in exchange for new operating lease liabilities				$ 3,900,000

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES, Purchase Commitments (Details) - SiC Materials [Member] $ in Thousands	3 Months Ended
	Sep. 30, 2021USD ($)Option	Sep. 30, 2020USD ($)
Purchase Commitments [Abstract]
Percentage of materials committed to be purchased	100.00%
Number of options to extend term of exclusive supply agreement | Option	1
Extension period of exclusive supply agreement	2 years
Total purchase commitment	$ 52,950
Remaining purchase commitment	31,350
Purchases	1,500	$ 0
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, JPMorgan Chase Credit Fac

DEBT, JPMorgan Chase Credit Facility (Details) - JPMorgan Chase Credit Facility [Member] $ in Thousands	3 Months Ended
	Sep. 30, 2021USD ($)
Line of Credit [Abstract]
Borrowing capacity	$ 5,000
Cash deposit	$ 5,050
Interest rate premium in excess of rate otherwise applicable charged during an event of default	3.00%
Credit facility outstanding	$ 0
LIBOR [Member]
Line of Credit [Abstract]
Basis spread on variable rate	1.25%

DEBT, White Oak Credit Facility

DEBT, White Oak Credit Facility (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2021	Jul. 09, 2021
White Oak Credit Facility [Member]
Line of Credit [Abstract]
Borrowing capacity	$ 5,000
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]
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%

DEBT, Paycheck Protection Progr

DEBT, Paycheck Protection Program Loan (Details) - USD ($)	12 Months Ended
	Jun. 30, 2021	Sep. 30, 2021	Jun. 18, 2020
Paycheck Protection Program Loan [Abstract]
Long-term debt		$ 0
PPP Loan [Member]
Paycheck Protection Program Loan [Abstract]
Principal amount			$ 965,000
Forgiveness of loan principal amount	$ 965,000
Fixed interest rate			1.00%
PPP Loan [Member] | Gain on Extinguishment of Debt [Member]
Paycheck Protection Program Loan [Abstract]
Forgiveness of inception-to-date interest expense	$ 9,000

SHAREHOLDERS' EQUITY AND STOC_3

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION, Stock-Based Compensation (Details) - USD ($)	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Stock-Based Compensation [Abstract]
Employee stock options	$ 69,565	$ 91,040
Restricted stock awards	209,842	16,315
Totals	279,407	107,355
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] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Stock Option Activity [Roll Forward]
Outstanding, beginning balance (in shares)	2,235,286
Granted (in shares)	72,500
Exercised (in shares)	(183,637)	0
Forfeited (in shares)	(14,584)
Expired (in shares)	(49,079)
Outstanding, ending balance (in shares)	2,060,486
Weighted Average Exercise Price [Roll Forward]
Outstanding, beginning balance (in dollars per share)	$ 1.24
Granted (in dollars per share)	2.67
Exercised (in dollars per share)	1.40
Forfeited (in dollars per share)	0.89
Expired (in dollars per share)	1.27
Outstanding, ending balance (in dollars per share)	$ 1.28
Fair Value of Stock Options [Abstract]
Fair value of stock options vested	$ 38

SHAREHOLDERS' EQUITY AND STOC_5

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION, Stock Options Outstanding (Details) - Stock Options [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2021
Stock Options Outstanding and Exercisable [Abstract]
Options outstanding, balance as of end of period (in shares)	2,060,486		2,235,286
Options outstanding, weighted average remaining contractual life	6 years 4 months 6 days
Options outstanding, weighted average exercise price (in dollars per share)	$ 1.28		$ 1.24
Options exercisable, balance as of end of period (in shares)	1,525,774
Options exercisable, weighted average remaining contractual life	5 years 5 months 1 day
Options exercisable, weighted average exercise price (in dollars per share)	$ 1.30
Options Vested or Expected to Vest [Abstract]
Options vested or expected to vest, balance as of end of period (in shares)	1,988,851
Options vested or expected to vest, weighted average remaining contractual life	6 years 3 months 3 days
Options vested or expected to vest, weighted average exercise price (in dollars per share)	$ 1.28
Unrecognized Stock-Based Compensation Expense [Abstract]
Unrecognized stock-based compensation expense	$ 208
Unrecognized stock-based compensation expense, period for recognition	25 months
Options outstanding, aggregate intrinsic value	$ 1,530
Options exercisable, aggregate intrinsic value	1,530
Options vested or expected to vest, aggregate intrinsic value	1,530
Options exercised, aggregate intrinsic value	255
Tax benefit associated with stock options exercised	$ 240
Options exercised (in shares)	183,637	0

SHAREHOLDERS' EQUITY AND STOC_6

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION, Restricted Stock Activity (Details) - Restricted Stock [Member] $ / shares in Units, $ in Thousands	3 Months Ended
	Sep. 30, 2021USD ($)$ / sharesshares
Restricted Stock Activity [Roll Forward]
Unvested, beginning balance (in shares) | shares	178,750
Granted (in shares) | shares	242,725
Vested (in shares) | shares	(242,725)
Unvested, ending balance (in shares) | shares	178,750
Weighted Average Grant Date Fair Value [Roll Forward]
Unvested, beginning balance (in dollars per share) | $ / shares	$ 0.72
Granted (in dollars per share) | $ / shares	2.75
Vested (in dollar per share) | $ / shares	1.25
Unvested, ending balance (in dollars per share) | $ / shares	$ 2.75
Unrecognized Stock-Based Compensation Expense [Abstract]
Unrecognized stock-based compensation expense | $	$ 468
Unrecognized stock-based compensation expense, period for recognition	10 months

SHAREHOLDERS' EQUITY AND STOC_7

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION, Shareholders' Equity (Details)	3 Months Ended
	Sep. 30, 2021USD ($)
Dividends [Abstract]
Cash dividends	$ 0

NET INCOME PER COMMON SHARE (De

NET INCOME PER COMMON SHARE (Details) - USD ($)	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Numerator [Abstract]
Net income	$ 827,025	$ 874,266
Denominator [Abstract]
Weighted average common shares outstanding, Basic (in shares)	29,971,178	28,786,910
Effect of dilutive securities (in shares)	1,126,362	52,987
Weighted average common shares outstanding, Diluted (in shares)	31,097,540	28,839,897
Net income per common share: [Abstract]
Basic (in dollars per share)	$ 0.03	$ 0.03
Diluted (in dollars per share)	$ 0.03	$ 0.03
Stock Options [Member]
Net Income per Common Share [Abstract]
Shares excluded from the computation of diluted net income per common share (in shares)	934,000	2,790,000
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	179,000

MAJOR CUSTOMERS AND CONCENTRA_3

MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK (Details)	3 Months Ended				12 Months Ended
	Sep. 30, 2021		Sep. 30, 2020		Jun. 30, 2021
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
Trade Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer A [Member]
Major Customers and Concentration of Credit Risk [Abstract]
Concentration risk, percentage	31.00%				30.00%
Trade Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer B [Member]
Major Customers and Concentration of Credit Risk [Abstract]
Concentration risk, percentage	24.00%				22.00%
Trade Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer C [Member]
Major Customers and Concentration of Credit Risk [Abstract]
Concentration risk, percentage	12.00%					[1]
Trade Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer D [Member]
Major Customers and Concentration of Credit Risk [Abstract]
Concentration risk, percentage		[2]			14.00%
Total Net Sales [Member] | Customer Concentration Risk [Member] | Customer A [Member]
Major Customers and Concentration of Credit Risk [Abstract]
Concentration risk, percentage	14.00%			[3]
Total Net Sales [Member] | Customer Concentration Risk [Member] | Customer B [Member]
Major Customers and Concentration of Credit Risk [Abstract]
Concentration risk, percentage	19.00%		14.00%
[1]	Customer C did not have individual balances that represented 10% or more of total gross accounts receivable as of June 30, 2021.
[2]	Customer D did not have individual balances that represented 10% or more of total gross accounts receivable as of September 30, 2021.
[3]	Customer A did not have net sales that represented 10% or more of total net sales for the three months ended September 30, 2020.