Charles & Colvard (CTHR) 10-Q 3 Nov 22 2023 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2022	Oct. 28, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2023
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		30,344,955

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2022	Jun. 30, 2022
Current assets:
Cash and cash equivalents	$ 11,568,995	$ 15,668,361
Restricted cash	5,054,778	5,510,979
Accounts receivable, net	1,558,401	2,220,816
Inventory, net	12,092,385	11,024,276
Note receivable	0	250,000
Prepaid expenses and other assets	1,375,093	1,190,012
Total current assets	31,649,652	35,864,444
Long-term assets:
Inventory, net	24,476,083	22,488,524
Property and equipment, net	2,196,099	1,901,176
Intangible assets, net	265,710	265,730
Operating lease right-of-use assets	2,638,400	2,787,419
Deferred income taxes, net	6,154,860	5,851,904
Note receivable	250,000	0
Other assets	50,212	49,658
Total long-term assets	36,031,364	33,344,411
TOTAL ASSETS	67,681,016	69,208,855
Current liabilities:
Accounts payable	4,718,048	4,401,229
Operating lease liabilities, current portion	862,401	856,571
Accrued expenses and other liabilities	1,135,536	1,546,483
Total current liabilities	6,715,985	6,804,283
Long-term liabilities:
Noncurrent operating lease liabilities	2,653,039	2,846,805
Total long-term liabilities	2,653,039	2,846,805
Total liabilities	9,369,024	9,651,088
Commitments and contingencies (Note 9)
Shareholders' equity:
Common stock, no par value; 50,000,000 shares authorized; 30,733,358 shares issued and 30,344,955 shares outstanding at September 30, 2022 and 30,778,046 shares issued and 30,747,759 shares outstanding at June 30, 2022	57,242,211	57,242,211
Additional paid-in capital	26,052,723	25,956,491
Treasury stock, at cost, 388,403 shares and 30,287 shares at September 30, 2022 and June 30, 2022, respectively	(489,979)	(38,164)
Accumulated deficit	(24,492,963)	(23,602,771)
Total shareholders' equity	58,311,992	59,557,767
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 67,681,016	$ 69,208,855

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2022	Jun. 30, 2022
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)	30,733,358	30,778,046
Common stock, shares outstanding (in shares)	30,344,955	30,747,759
Treasury stock (in shares)	388,403	30,287

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract]
Net sales	$ 7,374,083	$ 10,280,311
Costs and expenses:
Cost of goods sold	4,086,010	5,016,550
Sales and marketing	3,107,946	2,730,153
General and administrative	1,413,476	1,584,275
Total costs and expenses	8,607,432	9,330,978
(Loss) Income from operations	(1,233,349)	949,333
Other income (expense):
Interest income	40,201	355
Loss on foreign currency exchange	0	(34)
Total other income (expense), net	40,201	321
(Loss) Income before income taxes	(1,193,148)	949,654
Income tax benefit (expense)	302,956	(122,629)
Net (loss) income	$ (890,192)	$ 827,025
Net (loss) 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 (loss) income per common share:
Basic (in shares)	30,433,195	29,971,178
Diluted (in shares)	30,433,195	31,097,540

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Accumulated Deficit [Member]	Total
Balance at Jun. 30, 2021	$ 56,057,109	$ 25,608,593	$ 0	$ (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	0	$ 279,407
Repurchases of common stock (in shares)					0
Issuance of restricted stock	$ 0	0	0	0	$ 0
Issuance of restricted stock (in shares)	242,725
Stock option exercises	$ 397,112	(139,742)	0	0	257,370
Stock option exercises (in shares)	183,637
Net (loss) income	$ 0	0	0	827,025	827,025
Balance at Sep. 30, 2021	56,454,221	25,748,258	0	(25,149,661)	$ 57,052,818
Balance (in shares) at Sep. 30, 2021					30,339,457
Balance at Jun. 30, 2022	57,242,211	25,956,491	(38,164)	(23,602,771)	$ 59,557,767
Balance (in shares) at Jun. 30, 2022					30,747,759
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	0	96,232	0	0	$ 96,232
Cancellation of restricted stock	$ 0	0	0	0	0
Cancellation of restricted stock (in shares)	(44,688)
Repurchases of common stock	$ 0	0	$ (451,815)	0	$ (451,815)
Repurchases of common stock (in shares)			(358,116)		(358,116)
Net (loss) income	0	0	$ 0	(890,192)	$ (890,192)
Balance at Sep. 30, 2022	$ 57,242,211	$ 26,052,723	$ (489,979)	$ (24,492,963)	$ 58,311,992
Balance (in shares) at Sep. 30, 2022					30,344,955

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income	$ (890,192)	$ 827,025
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Depreciation and amortization	137,711	124,212
Stock-based compensation	96,232	279,407
Provision for uncollectible accounts	0	32,000
(Recovery of) Provision for sales returns	(36,000)	27,000
Inventory write-downs	119,000	232,000
Provision for accounts receivable discounts	3,250	16,419
Deferred income taxes	(302,956)	122,158
Changes in operating assets and liabilities:
Accounts receivable	695,165	(1,085,046)
Inventory	(3,174,668)	(2,673,706)
Prepaid expenses and other assets, net	(36,616)	(302,985)
Accounts payable	316,819	978,534
Accrued income taxes	0	471
Accrued expenses and other liabilities	(598,883)	(717,057)
Net cash used in operating activities	(3,671,138)	(2,139,568)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment	(430,400)	(398,121)
Payments for intangible assets	(2,214)	0
Net cash used in investing activities	(432,614)	(398,121)
CASH FLOWS FROM FINANCING ACTIVITIES:
Stock option exercises	0	257,370
Repurchases of common stock	(451,815)	0
Net cash (used in) provided by financing activities	(451,815)	257,370
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(4,555,567)	(2,280,319)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD	21,179,340	21,446,951
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD	16,623,773	19,166,632
Supplemental disclosure of cash flow information:
Cash paid during the period for income taxes	$ 5,900	$ 0

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	3 Months Ended
	Sep. 30, 2022
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 through moissaniteoutlet.com, LLC, a wholly owned operating subsidiary of charlesandcolvard.com, LLC, and third-party online marketplaces.

BASIS OF PRESENTATION AND SIGNI

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Sep. 30, 2022
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 accompanying unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. However, certain information or footnote disclosures normally included in complete financial statements prepared in accordance with U.S. GAAP have been condensed, or omitted, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of the Company’s management, the unaudited condensed consolidated financial statements in this Quarterly Report on Form 10-Q include all normal and recurring adjustments necessary for the fair statement of the results for the interim periods presented. The results for the three months ended September 30, 2022 are not necessarily indicative of the results to be expected for the fiscal year ending June 30, 2023. The condensed consolidated financial statements as of September 30, 2022 and for the three months ended September 30, 2022 and 2021 included in this Quarterly Report on Form 10-Q are unaudited. The balance sheet as of June 30, 2022 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 “2022 Annual Report”) for the fiscal year ended June 30, 2022 filed with the SEC on September 2, 2022. The accompanying condensed consolidated financial statements as of and for the three months ended September 30, 2022 and 2021, and as of the fiscal year ended June 30, 2022, include the accounts of the Company and its wholly owned subsidiaries charlesandcolvard.com, LLC, including its wholly-owned subsidiary, moissaniteoulet.com, LLC, which was formed and incorporated as of February 24, 2022; 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 September 30, 2022 or 2021. All intercompany accounts have been eliminated. Significant Accounting Policies – Use of Estimates Cash and Cash Equivalents – Restricted Cash – Pursuant to the terms and conditions of the Company’s broker-dealer agreement with Oppenheimer & Co., Inc. (“Oppenheimer”), with whom the Company has engaged to transact common stock share repurchases in connection with its stock repurchase program, the Company is required to maintain a funded liquid margin account held by Oppenheimer for the benefit of the Company. The purpose of this account is to fund the Company’s common stock purchases and any underlying transaction costs and fees. Depending upon the level and timing of stock repurchase activity, the funded margin account cash balance will fluctuate from time to time. At September 30, 2022 and June 30, 2022, cash in the amount of approximately $30 and approximately $461,000, respectively, was held by Oppenheimer. Such cash amount held by Oppenheimer was classified as restricted cash for financial reporting purposes on the Company’s condensed consolidated balance sheets. For additional information regarding the Company’s stock repurchase program, see Note 11, “Shareholders’ Equity and Stock-Based Compensation.” 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, 2022 June 30, 2022 Cash and cash equivalents $ 11,568,995 $ 15,668,361 Restricted cash 5,054,778 5,510,979 Total cash, cash equivalents, and restricted cash $ 16,623,773 $ 21,179,340 Recently Adopted/Issued Accounting Pronouncements – Financial Accounting Standards Board (“ ”) Accounting Standards Update (“ ”) Reference Rate Reform (Topic 848)

SEGMENT INFORMATION AND GEOGRAP

SEGMENT INFORMATION AND GEOGRAPHIC DATA	3 Months Ended
	Sep. 30, 2022
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 2022 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, 2022 Online Channels Traditional Total Net sales Finished jewelry $ 4,403,589 $ 1,136,817 $ 5,540,406 Loose jewels 448,897 1,384,780 1,833,677 Total $ 4,852,486 $ 2,521,597 $ 7,374,083 Product line cost of goods sold Finished jewelry $ 1,970,111 $ 636,588 $ 2,606,699 Loose jewels 162,699 662,924 825,623 Total $ 2,132,810 $ 1,299,512 $ 3,432,322 Product line gross profit Finished jewelry $ 2,433,478 $ 500,229 $ 2,933,707 Loose jewels 286,198 721,856 1,008,054 Total $ 2,719,676 $ 1,222,085 $ 3,941,761 Operating loss $ (609,545 ) $ (623,804 ) $ (1,233,349 ) Depreciation and amortization $ 63,387 $ 74,324 $ 137,711 Capital expenditures $ 136,988 $ 293,412 $ 430,400 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 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, 2022 2021 Product line cost of goods sold $ 3,432,322 $ 4,393,928 Non-capitalized manufacturing and production control expenses 377,053 342,401 Freight out 275,737 217,506 Inventory write-downs 119,000 232,000 Other inventory adjustments (118,102 ) (169,285 ) Cost of goods sold $ 4,086,010 $ 5,016,550 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 websites, charlesandcolvard.com and moissaniteoutlet.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. The following presents net sales data by geographic area: Three Months Ended September 30, 2022 2021 Net sales: United States $ 7,095,373 $ 9,824,730 International 278,710 455,581 Total $ 7,374,083 $ 10,280,311

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Sep. 30, 2022
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 are reflected in the condensed consolidated balance sheets at carrying value, which approximates fair value due to the 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, 2022 and 2021, no impairment was recorded.

INVENTORIES

INVENTORIES	3 Months Ended
	Sep. 30, 2022
INVENTORIES [Abstract]
INVENTORIES	5. INVENTORIES The Company’s total inventories, net of reserves, consisted of the following as of the dates presented: September 30, 2022 June 30, 2022 Finished jewelry: Raw materials $ 1,380,713 $ 1,697,361 Work-in-process 1,622,170 1,260,728 Finished goods 14,421,069 12,100,910 Finished goods on consignment 2,440,245 2,135,856 Total finished jewelry $ 19,864,197 $ 17,194,855 Loose jewels: Raw materials $ 1,987,296 $ 1,985,355 Work-in-process 9,070,743 8,485,713 Finished goods 5,297,794 5,454,266 Finished goods on consignment 265,338 303,491 Total loose jewels 16,621,171 16,228,825 Total supplies inventory 83,100 89,120 Total inventory $ 36,568,468 $ 33,512,800 As of the dates presented, the Company’s total inventories, net of reserves, are classified as follows: September 30, 2022 June 30, 2022 Short-term portion $ 12,092,385 $ 11,024,276 Long-term portion 24,476,083 22,488,524 Total $ 36,568,468 $ 33,512,800 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 goods set with 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, 2022 and June 30, 2022, work-in-process inventories issued to active production jobs approximated $2.87 million and $2.76 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, approximately one-half 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 include significant estimates by management, including the effect of market factors and sales trends. .

NOTE RECEIVABLE

NOTE RECEIVABLE	3 Months Ended
	Sep. 30, 2022
NOTE RECEIVABLE [Abstract]
NOTE RECEIVABLE	6. NOTE RECEIVABLE On March 5, 2021, the Company entered into a $250,000 Interest is accrued at a simple rate of 0.14% per annum and will continue to accrue until the Convertible Promissory Note is converted in accordance with the conversion privileges contained within the Convertible Promissory Note or is repaid. 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, 2022
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, 2022 June 30, 2022 Deferred revenue $ 504,919 $ 452,866 Accrued compensation and related benefits 325,121 614,443 Accrued sales taxes 142,216 295,743 Accrued cooperative advertising 139,694 137,467 Accrued franchise taxes 23,585 45,963 Other accrued expenses 1 1 Total accrued expenses and other liabilities $ 1,135,536 $ 1,546,483

INCOME TAXES

INCOME TAXES	3 Months Ended
	Sep. 30, 2022
INCOME TAXES [Abstract]
INCOME TAXES	8. INCOME TAXES For the three months ended September 30, 2022, the Company’s statutory tax rate was 22.98% and consisted of the federal income tax rate of 21.00% and a blended state income tax rate of 1.98%, net of the federal benefit. 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 21.00% and a blended state income tax rate of 1.24%, net of the federal benefit. For the three months ended September 30, 2022, the Company’s effective tax rate was 25.39%. 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-based compensation transactions during the accounting period then ended. The Company recognized a net income tax benefit of approximately $303,000 for the quarter ended September 30, 2022, compared with a net income tax expense of approximately $123,000 for the quarter ended September 30, 2021. 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 , 2022 September 30

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Sep. 30, 2022
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, 2022 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 option is 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. As of the quarter ended September 30, 2022, the Company has been reimbursed approximately $506,000 by the landlord for qualified leasehold improvements in accordance with the terms of the Lease Amendment. This reimbursement by the landlord reduced the remaining ROU asset by the same amount and is being recognized prospectively 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, 2022, the Company’s balance sheet classifications of its leases are as follows: Operating Leases: Noncurrent operating lease ROU assets $ 2,638,400 Current operating lease liabilities $ 862,401 Noncurrent operating lease liabilities 2,653,039 Total operating lease liabilities $ 3,515,440 The Company’s total operating lease cost for the three months ended September 30, 2022 and 2021 was approximately $175,000 and $202,000, respectively. As of September 30, 2022, 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 4.08 years. As of September 30, 2022, the Company’s remaining future payments under operating leases for each fiscal year ending June 30 are as follows: 2023 $ 656,221 2024 893,660 2025 918,236 2026 943,487 2027 317,327 Total lease payments 3,728,931 Less: imputed interest 213,491 Present value of lease payments 3,515,440 Less: current lease obligations 862,401 Total long-term lease obligations $ 2,653,039 The Company makes cash payments for amounts included in the measurement of its lease liabilities. During the three months ended September 30, 2022 and 2021, cash paid for operating leases was approximately $231,414 and $162,000 respectively. Purchase Commitments On December 12, 2014, the Company entered into an exclusive supply agreement (the “Supply Agreement”) with Wolfspeed, Inc. (“Wolfspeed”), formerly known as Cree, Inc. 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 $24.75 million remains to be purchased as of September 30, 2022. 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, 2022 and 2021, the Company purchased approximately $1.80 million and $1.50 million, respectively, of SiC crystals from Wolfspeed pursuant to the terms of the Supply Agreement, as amended. COVID-19 Update The COVID-19 pandemic continues to present business challenges and the Company expects these to continue throughout the fiscal year ending June 30, 2023 (“Fiscal 2023”). The Company’s management has reintroduced employees to the workplace, including in some cases permitting a hybrid blend of remote and onsite work for certain sectors of the workforce, as vaccine and related booster shot rates have increased and COVID-19 infection levels have decreased. The Company continues working with its customers and suppliers to minimize disruptions, including at times accelerating payments to key suppliers that are due by their terms in future periods. The Company expects to continue accelerating payments to its suppliers in some cases into Fiscal 2023. T

DEBT

DEBT	3 Months Ended
	Sep. 30, 2022
DEBT [Abstract]
DEBT	10. DEBT Line of Credit Effective July 7, 2021, the Company obtained from JPMorgan Chase a $5.00 million 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 borrowed money, installment obligations, and obligations under capital and operating leases. The JPMorgan Chase Credit Facility is secured by a cash deposit in the amount of $5.05 million held by JPMorgan Chase as collateral for the line of credit facility and was scheduled to mature on July 31, 2022. Effective July 28, 2022, the JPMorgan Chase Credit Facility was amended to, among other things, extend the maturity date to July 31, 2023, and append the Company’s obligations under the JPMorgan Chase Credit Facility to be guaranteed by the Company’s wholly owned subsidiaries, Charles & Colvard Direct, LLC, charlesandcolvard.com, LLC, and moissaniteoutlet.com, LLC . Each advance under the JPMorgan Chase Credit Facility, as amended, accrues interest at a rate equal to the sum of JPMorgan Chase’s monthly secured overnight financing rate (“SOFR rate”) to which JPMorgan Chase is subject with respect to the adjusted SOFR rate as established by the U.S. Federal Reserve Board, plus a margin of 1.25% per annum and an unsecured to secured interest rate adjustment of 0.10% per annum. Prior to its amendment, each advance under the JPMorgan Chase Credit Facility would have accrued 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/360-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, 2022, the Company had not borrowed against the JPMorgan Chase Credit Facility and had no outstanding debt as of the period then ended .

SHAREHOLDERS' EQUITY AND STOCK-

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION	3 Months Ended
	Sep. 30, 2022
SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION [Abstract]
SHAREHOLDERS' EQUITY	11. SHAREHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION Repurchases of Common Stock Pursuant to authority granted by the Company’s Board of Directors on April 29, 2022, the Company can repurchase up to approximately $5.00 million in shares outstanding of the Company’s common stock over the three-year period ending April 29, 2025. Pursuant to the terms of the repurchase authorization, the common stock share repurchases are generally at the discretion of the Company’s management. As the Company repurchases its common shares, which have no par value, the Company reports such shares held as treasury stock in the accompanying condensed consolidated balance sheets with the purchase price recorded within treasury stock. During the three-month period ended September 30, 2022, the Company repurchased 358,116 shares of the Company’s common stock for an aggregate price of $451,815 pursuant to the repurchase authorization. The Company repurchased no shares of its common stock during the three-month period ended September 30, 2021. Dividends The Company has paid no cash dividends during the current fiscal year through September 30, 2022.
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, 2022 2021 Employee stock options $ 72,498 $ 69,565 Restricted stock awards 23,734 209,842 Totals $ 96,232 $ 279,407 No stock-based compensation was capitalized as a cost of inventory during the three months ended September 30, 2022 or 2021. Stock Options – Shares Weighted Average Exercise Price Outstanding, June 30, 2022 1,658,803 $ 1.32 Granted 55,000 $ 1.30 Forfeited (3,001 ) $ 1.96 Expired (999 ) $ 0.88 Outstanding, September 30, 2022 1,709,803 $ 1.32 The weighted average grant date fair value of stock options granted during the three months ended September 30, 2022 and 2021 was approximately $0.70 and $1.32, respectively. The total fair value of stock options that vested during the three months ended September 30, 2022 and 2021 was approximately $53,000 and $38,000, respectively. The following table summarizes information about stock options outstanding at September 30, 2022: Options Outstanding Options Exercisable Options Vested or Expected to Vest Balance as of 9/30/2022 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Balance as of 9/30/2022 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Balance as of 9/30/2022 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price 1,709,803 6.75 $ 1.32 1,315,087 6.07 $ 1.11 1,645,429 6.65 $ 1.30 As of September 30, 2022, the unrecognized stock-based compensation expense related to unvested stock options was approximately $267,000, which is expected to be recognized over a weighted average period of approximately 26 months. The aggregate intrinsic value of stock options outstanding, exercisable, and vested or expected to vest at September 30, 2022 and 2021 was approximately $157,000 and $1.53 million, respectively. These amounts are before applicable income taxes and represents the closing market price of the Company’s common stock at September 30, 2022 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. There were no stock options exercised during the three-month-period ended September 30, 2022. During the three months ended September 30, 2021, the aggregate intrinsic value of stock options exercised was approximately $255,000, respectively, and the total tax benefit associated with the stock options that were exercised was approximately $77,000. Restricted Stock – Shares Weighted Average Grant Date Fair Value Unvested, June 30, 2022 178,750 $ 2.75 Cancelled (44,688 ) $ 2.75 Vested (134,062 ) $ 2.75 Unvested, September 30, 2022 - $ - During the three-month period ended September 30, 2022, there were no restricted stock shares awarded to plan participants. Therefore, as of September 30, 2022, the Company had no unrecognized stock-based compensation expense related to unvested restricted shares that would be otherwise subject to achievement of performance goals.

NET (LOSS) INCOME PER COMMON SH

NET (LOSS) INCOME PER COMMON SHARE	3 Months Ended
	Sep. 30, 2022
NET (LOSS) INCOME PER COMMON SHARE [Abstract]
NET (LOSS) INCOME PER COMMON SHARE	12. NET (LOSS) INCOME PER COMMON SHARE Basic net (loss) income per common share is computed by dividing net (loss) 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 (loss) income per share presentations: Three Months Ended September 30, 2022 2021 Numerator: Net (loss) income $ (890,192 ) $ 827,025 Denominator: Weighted average common shares outstanding: Basic 30,433,195 29,971,178 Effect of dilutive securities - 1,126,362 Diluted 30,433,195 31,097,540 Net (loss) income per common share: Basic $ (0.03 ) $ 0.03 Diluted $ (0.03 ) $ 0.03 For the three months ended September 30, 2022, stock options to purchase approximately 1.71 million shares were excluded from the computation of diluted net loss per common share because the effect of inclusion of such amounts would be anti-dilutive to net loss per common share. For the three months ended September 30, 2021, stock options to purchase approximately 934,000 shares were excluded from the computation of diluted net income per common share. These shares are excluded from the computation of diluted net income per common share because the exercise price of the stock options for the period presented herein 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 shares of unvested restricted stock are excluded from the computation of diluted net income per common share as of September 30, 2021, because the shares are performance-based and the underlying conditions had not been met as of the periods presented herein. There were no shares of unvested restricted stock outstanding as of September 30, 2022.

MAJOR CUSTOMERS AND CONCENTRATI

MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK	3 Months Ended
	Sep. 30, 2022
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 and lab grown diamonds 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, 2022 June 30, 2022 Customer A 11 % 29 % Customer B 31 % 20 % Customer C 16 % 13 % 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, 2022 2021 Customer A * % 19 % Customer B 17 % 14 % * Customer A did not have net sales that represented 10% or more of total net sales for the three months ended September 30, 2022.

BASIS OF PRESENTATION AND SIG_2

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Sep. 30, 2022
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Basis of Presentation	The accompanying unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. However, certain information or footnote disclosures normally included in complete financial statements prepared in accordance with U.S. GAAP have been condensed, or omitted, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of the Company’s management, the unaudited condensed consolidated financial statements in this Quarterly Report on Form 10-Q include all normal and recurring adjustments necessary for the fair statement of the results for the interim periods presented. The results for the three months ended September 30, 2022 are not necessarily indicative of the results to be expected for the fiscal year ending June 30, 2023. The condensed consolidated financial statements as of September 30, 2022 and for the three months ended September 30, 2022 and 2021 included in this Quarterly Report on Form 10-Q are unaudited. The balance sheet as of June 30, 2022 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 “2022 Annual Report”) for the fiscal year ended June 30, 2022 filed with the SEC on September 2, 2022.
Principles of Consolidation	The accompanying condensed consolidated financial statements as of and for the three months ended September 30, 2022 and 2021, and as of the fiscal year ended June 30, 2022, include the accounts of the Company and its wholly owned subsidiaries charlesandcolvard.com, LLC, including its wholly-owned subsidiary, moissaniteoulet.com, LLC, which was formed and incorporated as of February 24, 2022; 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 September 30, 2022 or 2021. All intercompany accounts have been eliminated.
Use of Estimates	Use of Estimates
Cash and Cash Equivalents	Cash and Cash Equivalents –
Restricted Cash	Restricted Cash – Pursuant to the terms and conditions of the Company’s broker-dealer agreement with Oppenheimer & Co., Inc. (“Oppenheimer”), with whom the Company has engaged to transact common stock share repurchases in connection with its stock repurchase program, the Company is required to maintain a funded liquid margin account held by Oppenheimer for the benefit of the Company. The purpose of this account is to fund the Company’s common stock purchases and any underlying transaction costs and fees. Depending upon the level and timing of stock repurchase activity, the funded margin account cash balance will fluctuate from time to time. At September 30, 2022 and June 30, 2022, cash in the amount of approximately $30 and approximately $461,000, respectively, was held by Oppenheimer. Such cash amount held by Oppenheimer was classified as restricted cash for financial reporting purposes on the Company’s condensed consolidated balance sheets. For additional information regarding the Company’s stock repurchase program, see Note 11, “Shareholders’ Equity and Stock-Based Compensation.” 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, 2022 June 30, 2022 Cash and cash equivalents $ 11,568,995 $ 15,668,361 Restricted cash 5,054,778 5,510,979 Total cash, cash equivalents, and restricted cash $ 16,623,773 $ 21,179,340
Recently Adopted/Issued Accounting Pronouncements	Recently Adopted/Issued Accounting Pronouncements – Financial Accounting Standards Board (“ ”) Accounting Standards Update (“ ”) Reference Rate Reform (Topic 848)

BASIS OF PRESENTATION AND SIG_3

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Sep. 30, 2022
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, 2022 June 30, 2022 Cash and cash equivalents $ 11,568,995 $ 15,668,361 Restricted cash 5,054,778 5,510,979 Total cash, cash equivalents, and restricted cash $ 16,623,773 $ 21,179,340

SEGMENT INFORMATION AND GEOGR_2

SEGMENT INFORMATION AND GEOGRAPHIC DATA (Tables)	3 Months Ended
	Sep. 30, 2022
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, 2022 Online Channels Traditional Total Net sales Finished jewelry $ 4,403,589 $ 1,136,817 $ 5,540,406 Loose jewels 448,897 1,384,780 1,833,677 Total $ 4,852,486 $ 2,521,597 $ 7,374,083 Product line cost of goods sold Finished jewelry $ 1,970,111 $ 636,588 $ 2,606,699 Loose jewels 162,699 662,924 825,623 Total $ 2,132,810 $ 1,299,512 $ 3,432,322 Product line gross profit Finished jewelry $ 2,433,478 $ 500,229 $ 2,933,707 Loose jewels 286,198 721,856 1,008,054 Total $ 2,719,676 $ 1,222,085 $ 3,941,761 Operating loss $ (609,545 ) $ (623,804 ) $ (1,233,349 ) Depreciation and amortization $ 63,387 $ 74,324 $ 137,711 Capital expenditures $ 136,988 $ 293,412 $ 430,400 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
Reconciliation of Product Line 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, 2022 2021 Product line cost of goods sold $ 3,432,322 $ 4,393,928 Non-capitalized manufacturing and production control expenses 377,053 342,401 Freight out 275,737 217,506 Inventory write-downs 119,000 232,000 Other inventory adjustments (118,102 ) (169,285 ) Cost of goods sold $ 4,086,010 $ 5,016,550
Net Sales by Geographic Area	The following presents net sales data by geographic area: Three Months Ended September 30, 2022 2021 Net sales: United States $ 7,095,373 $ 9,824,730 International 278,710 455,581 Total $ 7,374,083 $ 10,280,311

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Sep. 30, 2022
INVENTORIES [Abstract]
Inventories	The Company’s total inventories, net of reserves, consisted of the following as of the dates presented: September 30, 2022 June 30, 2022 Finished jewelry: Raw materials $ 1,380,713 $ 1,697,361 Work-in-process 1,622,170 1,260,728 Finished goods 14,421,069 12,100,910 Finished goods on consignment 2,440,245 2,135,856 Total finished jewelry $ 19,864,197 $ 17,194,855 Loose jewels: Raw materials $ 1,987,296 $ 1,985,355 Work-in-process 9,070,743 8,485,713 Finished goods 5,297,794 5,454,266 Finished goods on consignment 265,338 303,491 Total loose jewels 16,621,171 16,228,825 Total supplies inventory 83,100 89,120 Total inventory $ 36,568,468 $ 33,512,800 As of the dates presented, the Company’s total inventories, net of reserves, are classified as follows: September 30, 2022 June 30, 2022 Short-term portion $ 12,092,385 $ 11,024,276 Long-term portion 24,476,083 22,488,524 Total $ 36,568,468 $ 33,512,800

ACCRUED EXPENSES AND OTHER LI_2

ACCRUED EXPENSES AND OTHER LIABILITIES (Tables)	3 Months Ended
	Sep. 30, 2022
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, 2022 June 30, 2022 Deferred revenue $ 504,919 $ 452,866 Accrued compensation and related benefits 325,121 614,443 Accrued sales taxes 142,216 295,743 Accrued cooperative advertising 139,694 137,467 Accrued franchise taxes 23,585 45,963 Other accrued expenses 1 1 Total accrued expenses and other liabilities $ 1,135,536 $ 1,546,483

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Sep. 30, 2022
COMMITMENTS AND CONTINGENCIES [Abstract]
Balance Sheet Classifications of Leases	As of September 30, 2022, the Company’s balance sheet classifications of its leases are as follows: Operating Leases: Noncurrent operating lease ROU assets $ 2,638,400 Current operating lease liabilities $ 862,401 Noncurrent operating lease liabilities 2,653,039 Total operating lease liabilities $ 3,515,440
Remaining Future Payments Under Operating Leases	As of September 30, 2022, the Company’s remaining future payments under operating leases for each fiscal year ending June 30 are as follows: 2023 $ 656,221 2024 893,660 2025 918,236 2026 943,487 2027 317,327 Total lease payments 3,728,931 Less: imputed interest 213,491 Present value of lease payments 3,515,440 Less: current lease obligations 862,401 Total long-term lease obligations $ 2,653,039

SHAREHOLDERS' EQUITY AND STOC_2

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Sep. 30, 2022
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, 2022 2021 Employee stock options $ 72,498 $ 69,565 Restricted stock awards 23,734 209,842 Totals $ 96,232 $ 279,407
Stock Option Activity	Stock Options – Shares Weighted Average Exercise Price Outstanding, June 30, 2022 1,658,803 $ 1.32 Granted 55,000 $ 1.30 Forfeited (3,001 ) $ 1.96 Expired (999 ) $ 0.88 Outstanding, September 30, 2022 1,709,803 $ 1.32
Stock Options Outstanding	The following table summarizes information about stock options outstanding at September 30, 2022: Options Outstanding Options Exercisable Options Vested or Expected to Vest Balance as of 9/30/2022 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Balance as of 9/30/2022 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Balance as of 9/30/2022 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price 1,709,803 6.75 $ 1.32 1,315,087 6.07 $ 1.11 1,645,429 6.65 $ 1.30
Restricted Stock Activity	Restricted Stock – Shares Weighted Average Grant Date Fair Value Unvested, June 30, 2022 178,750 $ 2.75 Cancelled (44,688 ) $ 2.75 Vested (134,062 ) $ 2.75 Unvested, September 30, 2022 - $ -

NET (LOSS) INCOME PER COMMON _2

NET (LOSS) INCOME PER COMMON SHARE (Tables)	3 Months Ended
	Sep. 30, 2022
NET (LOSS) INCOME PER COMMON SHARE [Abstract]
Basic and Diluted Net (Loss) Income per Share	The following table reconciles the differences between the basic and diluted net (loss) income per share presentations: Three Months Ended September 30, 2022 2021 Numerator: Net (loss) income $ (890,192 ) $ 827,025 Denominator: Weighted average common shares outstanding: Basic 30,433,195 29,971,178 Effect of dilutive securities - 1,126,362 Diluted 30,433,195 31,097,540 Net (loss) 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, 2022
MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK [Abstract]
Major Customers	The following is a summary of customers that represent 10% or more of total gross accounts receivable as of the dates presented: September 30, 2022 June 30, 2022 Customer A 11 % 29 % Customer B 31 % 20 % Customer C 16 % 13 % 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, 2022 2021 Customer A * % 19 % Customer B 17 % 14 % * Customer A did not have net sales that represented 10% or more of total net sales for the three months ended September 30, 2022.

BASIS OF PRESENTATION AND SIG_4

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES, Restricted Cash (Details) - USD ($)	Sep. 30, 2022	Jun. 30, 2022	Sep. 30, 2021	Jun. 30, 2021
Restricted Cash [Abstract]
Funded liquid margin account	$ 30	$ 461,000
Cash, Cash Equivalents and Restricted Cash [Abstract]
Cash and cash equivalents	11,568,995	15,668,361
Restricted cash	5,054,778	5,510,979
Total cash, cash equivalents, and restricted cash	16,623,773	$ 21,179,340	$ 19,166,632	$ 21,446,951
JPMorgan Chase Credit Facility [Member]
Restricted Cash [Abstract]
Borrowing capacity	5,000,000
Cash deposit	$ 5,050,000

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, 2022 USD ($)
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, 2022 USD ($) Segment	Sep. 30, 2021 USD ($)
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	$ 7,374,083	$ 10,280,311
Product line cost of goods sold	4,086,010	5,016,550
Operating income (loss)	(1,233,349)	949,333
Depreciation and amortization	137,711	124,212
Capital expenditures	430,400	398,121
Product Line [Member]
Summary Information by Reportable Segment [Abstract]
Product line cost of goods sold	3,432,322	4,393,928
Product line gross profit	3,941,761	5,886,383
Finished Jewelry [Member]
Summary Information by Reportable Segment [Abstract]
Net sales	5,540,406	5,686,287
Product line cost of goods sold	2,606,699	2,334,482
Product line gross profit	2,933,707	3,351,805
Loose Jewels [Member]
Summary Information by Reportable Segment [Abstract]
Net sales	1,833,677	4,594,024
Product line cost of goods sold	825,623	2,059,446
Product line gross profit	1,008,054	2,534,578
Operating and Reportable Segments [Member] | Online Channels [Member]
Summary Information by Reportable Segment [Abstract]
Net sales	4,852,486	5,369,805
Product line cost of goods sold	2,132,810	2,025,329
Product line gross profit	2,719,676	3,344,476
Operating income (loss)	(609,545)	321,671
Depreciation and amortization	63,387	67,702
Capital expenditures	136,988	59,260
Operating and Reportable Segments [Member] | Online Channels [Member] | Finished Jewelry [Member]
Summary Information by Reportable Segment [Abstract]
Net sales	4,403,589	4,486,958
Product line cost of goods sold	1,970,111	1,711,224
Product line gross profit	2,433,478	2,775,734
Operating and Reportable Segments [Member] | Online Channels [Member] | Loose Jewels [Member]
Summary Information by Reportable Segment [Abstract]
Net sales	448,897	882,847
Product line cost of goods sold	162,699	314,105
Product line gross profit	286,198	568,742
Operating and Reportable Segments [Member] | Traditional [Member]
Summary Information by Reportable Segment [Abstract]
Net sales	2,521,597	4,910,506
Product line cost of goods sold	1,299,512	2,368,599
Product line gross profit	1,222,085	2,541,907
Operating income (loss)	(623,804)	627,662
Depreciation and amortization	74,324	56,510
Capital expenditures	293,412	338,861
Operating and Reportable Segments [Member] | Traditional [Member] | Finished Jewelry [Member]
Summary Information by Reportable Segment [Abstract]
Net sales	1,136,817	1,199,329
Product line cost of goods sold	636,588	623,258
Product line gross profit	500,229	576,071
Operating and Reportable Segments [Member] | Traditional [Member] | Loose Jewels [Member]
Summary Information by Reportable Segment [Abstract]
Net sales	1,384,780	3,711,177
Product line cost of goods sold	662,924	1,745,341
Product line gross profit	$ 721,856	$ 1,965,836

SEGMENT INFORMATION AND GEOGR_4

SEGMENT INFORMATION AND GEOGRAPHIC DATA, Reconciliation of Cost of Goods Sold (Details) - USD ($)	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Reconciliation of Cost of Goods Sold [Abstract]
Cost of goods sold	$ 4,086,010	$ 5,016,550
Inventory write-downs	119,000	232,000
Product Line [Member]
Reconciliation of Cost of Goods Sold [Abstract]
Cost of goods sold	3,432,322	4,393,928
Segment Reconciling Item [Member]
Reconciliation of Cost of Goods Sold [Abstract]
Non-capitalized manufacturing and production control expenses	377,053	342,401
Freight out	275,737	217,506
Inventory write-downs	119,000	232,000
Other inventory adjustments	$ (118,102)	$ (169,285)

SEGMENT INFORMATION AND GEOGR_5

SEGMENT INFORMATION AND GEOGRAPHIC DATA, Net Sales by Geographic Area (Details) - USD ($)	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Net Sales by Geographic Area [Abstract]
Net sales	$ 7,374,083	$ 10,280,311
Reportable Geographical Component [Member] | United States [Member]
Net Sales by Geographic Area [Abstract]
Net sales	7,095,373	9,824,730
Reportable Geographical Component [Member] | International [Member]
Net Sales by Geographic Area [Abstract]
Net sales	$ 278,710	$ 455,581

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($)	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
FAIR VALUE MEASUREMENTS [Abstract]
Asset impairment	$ 0	$ 0

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	3 Months Ended
	Sep. 30, 2022	Jun. 30, 2022
Inventories [Abstract]
Total supplies inventory	$ 83,100	$ 89,120
Total inventory	36,568,468	33,512,800
Short-term portion	12,092,385	11,024,276
Long-term portion	24,476,083	22,488,524
Work-in-process inventories issued to active production jobs	$ 2,870,000	2,760,000
Percentage of jewel inventory not mounted in finished jewelry settings	50%
Finished Jewelry [Member]
Inventories [Abstract]
Raw materials	$ 1,380,713	1,697,361
Work-in-process	1,622,170	1,260,728
Finished goods	14,421,069	12,100,910
Finished goods on consignment	2,440,245	2,135,856
Total	19,864,197	17,194,855
Loose Jewels [Member]
Inventories [Abstract]
Raw materials	1,987,296	1,985,355
Work-in-process	9,070,743	8,485,713
Finished goods	5,297,794	5,454,266
Finished goods on consignment	265,338	303,491
Total	$ 16,621,171	$ 16,228,825

NOTE RECEIVABLE (Details)

NOTE RECEIVABLE (Details) - Convertible Promissory Note [Member] - USD ($)	Sep. 30, 2022	Mar. 05, 2021
Note Receivable [Abstract]
Note receivable		$ 250,000
Interest rate	0.14%
Interest rate during event of default	5%
Percentage of per unit price of units purchased by investors	80%
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, 2022	Jun. 30, 2022
ACCRUED EXPENSES AND OTHER LIABILITIES [Abstract]
Deferred revenue	$ 504,919	$ 452,866
Accrued compensation and related benefits	325,121	614,443
Accrued sales tax	142,216	295,743
Accrued cooperative advertising	139,694	137,467
Accrued franchise taxes	23,585	45,963
Other accrued expenses	1	1
Total accrued expenses and other liabilities	$ 1,135,536	$ 1,546,483

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Jun. 30, 2022
INCOME TAXES [Abstract]
Combined federal and state statutory tax rate	22.98%	22.24%
Federal income tax rate	21%	21%
State income tax rate	1.98%	1.24%
Effective tax rate	25.39%
Income tax (benefit) expense	$ (302,956)	$ 122,629
Deferred tax assets	$ 6,154,860		$ 5,851,904

COMMITMENTS AND CONTINGENCIES,

COMMITMENTS AND CONTINGENCIES, Lease Arrangements (Details)		3 Months Ended
	Jan. 29, 2021 USD ($)	Sep. 30, 2022 USD ($) ft²	Sep. 30, 2021 USD ($)	Jun. 30, 2022 USD ($)
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
Reimbursement for leasehold improvements		$ 506,000
Balance Sheet Classifications of Leases [Abstract]
Noncurrent operating lease ROU assets		2,638,400		$ 2,787,419
Operating Lease Liabilities [Abstract]
Current operating lease liabilities		862,401		856,571
Noncurrent operating lease liabilities		2,653,039		2,846,805
Total operating lease liabilities		3,515,440
Operating lease cost		$ 175,000	$ 202,000
Assumed discount rate		2.81%
Remaining operating lease term		4 years 29 days
Future Lease Payments Under Operating Leases [Abstract]
2023		$ 656,221
2024		893,660
2025		918,236
2026		943,487
2027		317,327
Total lease payments		3,728,931
Less: imputed interest		213,491
Total operating lease liabilities		3,515,440
Less: current lease obligations		862,401		856,571
Total long-term lease obligations		2,653,039		$ 2,846,805
Cash paid for operating leases		$ 231,414	$ 162,000

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES, Purchase Commitments (Details) - SiC Materials [Member] $ in Thousands	3 Months Ended
	Sep. 30, 2022 USD ($) Option	Sep. 30, 2021 USD ($)
Purchase Commitments [Abstract]
Percentage of materials committed to be purchased	100%
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	24,750
Purchases	1,800	$ 1,500
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 (Details)

DEBT (Details) - USD ($)		3 Months Ended
	Jul. 28, 2022	Sep. 30, 2022
Line of Credit [Abstract]
Long-term debt		$ 0
JPMorgan Chase Credit Facility [Member]
Line of Credit [Abstract]
Borrowing capacity		5,000,000
Cash deposit		$ 5,050,000
Interest rate premium in excess of rate otherwise applicable charged during an event of default		3%
Credit facility outstanding		$ 0
JPMorgan Chase Credit Facility [Member] | SOFR Rate [Member]
Line of Credit [Abstract]
Basis spread on variable rate	1.25%
Interest rate adjustment	0.10%
JPMorgan Chase Credit Facility [Member] | LIBOR [Member]
Line of Credit [Abstract]
Basis spread on variable rate		1.25%

SHAREHOLDERS' EQUITY AND STOC_3

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION, Repurchases of Common Stock (Details) - USD ($)	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Jun. 30, 2022	Apr. 29, 2022
Repurchases of Common Stock [Abstract]
Period over which common stock can be repurchased	3 years
Common stock, par value (in dollars per share)	$ 0		$ 0
Repurchases of common stock (in shares)	358,116	0
Repurchases of common stock	$ 451,815
Maximum [Member]
Repurchases of Common Stock [Abstract]
Authorized amount of common stock that can be repurchased				$ 5,000,000

SHAREHOLDERS' EQUITY AND STOC_4

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION, Dividends (Details)	3 Months Ended
	Sep. 30, 2022 USD ($)
Dividends [Abstract]
Cash dividends	$ 0

SHAREHOLDERS' EQUITY AND STOC_5

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION, Stock-Based Compensation (Details) - USD ($)	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Stock-Based Compensation [Abstract]
Employee stock options	$ 72,498	$ 69,565
Restricted stock awards	23,734	209,842
Totals	96,232	279,407
Stock-based compensation capitalized as a cost of inventory	$ 0	$ 0

SHAREHOLDERS' EQUITY AND STOC_6

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION, Stock Option Activity (Details) - Stock Options [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Stock Option Activity [Roll Forward]
Outstanding, beginning balance (in shares)	1,658,803
Granted (in shares)	55,000
Forfeited (in shares)	(3,001)
Expired (in shares)	(999)
Outstanding, ending balance (in shares)	1,709,803
Weighted Average Exercise Price [Roll Forward]
Outstanding, beginning balance (in dollars per share)	$ 1.32
Granted (in dollars per share)	1.3
Forfeited (in dollars per share)	1.96
Expired (in dollars per share)	0.88
Outstanding, ending balance (in dollars per share)	1.32
Fair Value of Stock Options [Abstract]
Fair value of stock options (in dollars per share)	$ 0.7	$ 1.32
Fair value of stock options vested	$ 53	$ 38

SHAREHOLDERS' EQUITY AND STOC_7

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION, Stock Options Outstanding (Details) - Stock Options [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Jun. 30, 2022
Stock Options Outstanding and Exercisable [Abstract]
Options outstanding, balance as of end of period (in shares)	1,709,803		1,658,803
Options outstanding, weighted average remaining contractual life	6 years 9 months
Options outstanding, weighted average exercise price (in dollars per share)	$ 1.32		$ 1.32
Options exercisable, balance as of end of period (in shares)	1,315,087
Options exercisable, weighted average remaining contractual life	6 years 25 days
Options exercisable, weighted average exercise price (in dollars per share)	$ 1.11
Options Vested or Expected to Vest [Abstract]
Options vested or expected to vest, balance as of end of period (in shares)	1,645,429
Options vested or expected to vest, weighted average remaining contractual life	6 years 7 months 24 days
Options vested or expected to vest, weighted average exercise price (in dollars per share)	$ 1.3
Unrecognized Stock-Based Compensation Expense [Abstract]
Unrecognized stock-based compensation expense	$ 267
Unrecognized stock-based compensation expense, period for recognition	26 months
Options outstanding, aggregate intrinsic value	$ 157	$ 1,530
Options exercisable, aggregate intrinsic value	157	1,530
Options vested or expected to vest, aggregate intrinsic value	$ 157	1,530
Exercised (in shares)	0
Options exercised, aggregate intrinsic value		255
Tax benefit associated with stock options exercised		$ 77

SHAREHOLDERS' EQUITY AND STOC_8

SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION, Restricted Stock Activity (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Sep. 30, 2022 USD ($) $ / shares shares
Unrecognized Stock-Based Compensation Expense [Abstract]
Shares awarded (in shares)	0
Restricted Stock [Member]
Restricted Stock Activity [Roll Forward]
Unvested, beginning balance (in shares)	178,750
Canceled (in shares)	(44,688)
Vested (in shares)	(134,062)
Unvested, ending balance (in shares)	0
Weighted Average Grant Date Fair Value [Roll Forward]
Unvested, beginning balance (in dollars per share) | $ / shares	$ 2.75
Canceled (in dollars per share) | $ / shares	2.75
Vested (in dollars per share) | $ / shares	2.75
Unvested, ending balance (in dollars per share) | $ / shares	$ 0
Unrecognized Stock-Based Compensation Expense [Abstract]
Unrecognized stock-based compensation expense | $	$ 0

NET (LOSS) INCOME PER COMMON _3

NET (LOSS) INCOME PER COMMON SHARE (Details) - USD ($)	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Numerator [Abstract]
Net (loss) income	$ (890,192)	$ 827,025
Denominator [Abstract]
Weighted average common shares outstanding, Basic (in shares)	30,433,195	29,971,178
Effect of dilutive securities (in shares)	0	1,126,362
Weighted average common shares outstanding, Diluted (in shares)	30,433,195	31,097,540
Net (Loss) 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)	1,710,000	934,000
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
Unvested restricted stock outstanding (in shares)	0

MAJOR CUSTOMERS AND CONCENTRA_3

MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK (Details)	3 Months Ended			12 Months Ended
	Sep. 30, 2022		Sep. 30, 2021	Jun. 30, 2022
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	11%			29%
Trade Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer B [Member]
Major Customers and Concentration of Credit Risk [Abstract]
Concentration risk, percentage	31%			20%
Trade Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer C [Member]
Major Customers and Concentration of Credit Risk [Abstract]
Concentration risk, percentage	16%			13%
Total Net Sales [Member] | Customer Concentration Risk [Member] | Customer A [Member]
Major Customers and Concentration of Credit Risk [Abstract]
Concentration risk, percentage		[1]	19%
Total Net Sales [Member] | Customer Concentration Risk [Member] | Customer B [Member]
Major Customers and Concentration of Credit Risk [Abstract]
Concentration risk, percentage	17%		14%
[1]Customer A did not have net sales that represented 10% or more of total net sales for the three months ended September 30, 2022.