Lantronix (LTRX) 10-Q 13 Nov 20 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2020	Nov. 06, 2020
Cover [Abstract]
Entity Registrant Name	LANTRONIX INC
Entity Central Index Key	0001114925
Document Type	10-Q
Document Period End Date	Sep. 30, 2020
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		28,590,989
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2021
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth	false
Entity Interactive Data Current	Yes
Entity File Number	001-16027
Entity Incorporation State Code	DE

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020
Current assets:
Cash and cash equivalents	$ 7,709	$ 7,691
Accounts receivable, net	12,345	11,411
Inventories, net	13,888	13,781
Contract manufacturers' receivable	551	337
Prepaid expenses and other current assets	1,690	1,290
Total current assets	36,183	34,510
Property and equipment, net	1,555	1,587
Goodwill	15,810	15,810
Purchased intangible assets, net	11,567	12,449
Lease right-of-use assets	2,974	3,345
Other assets	241	232
Total assets	68,330	67,933
Current liabilities:
Accounts payable	6,676	5,331
Accrued payroll and related expenses	2,390	2,658
Short-term debt, net	1,472	1,472
Other current liabilities	6,339	6,308
Total current liabilities	16,877	15,769
Long-term debt, net	3,314	3,682
Other non-current liabilities	1,640	1,962
Total liabilities	21,831	21,413
Commitments and contingencies (Note 8)	0	0
Stockholders' equity:
Common stock	3	3
Additional paid-in capital	246,546	246,265
Accumulated deficit	(200,421)	(200,119)
Accumulated other comprehensive income	371	371
Total stockholders' equity	46,499	46,520
Total liabilities and stockholders' equity	$ 68,330	$ 67,933

UNAUDITED CONDENSED CONSOLIDA_2

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
Net revenue	$ 17,146	$ 12,741
Cost of revenue	8,907	6,546
Gross profit	8,239	6,195
Operating expenses:
Selling, general and administrative	4,899	4,473
Research and development	2,572	2,621
Restructuring, severance and related charges	92	749
Acquisition-related costs	0	643
Amortization of purchased intangible assets	882	144
Total operating expenses	8,445	8,630
Loss from operations	(206)	(2,435)
Interest income (expense), net	(85)	56
Other income (expense), net	39	(43)
Loss before income taxes	(252)	(2,422)
Provision for income taxes	50	48
Net loss	$ (302)	$ (2,470)
Net loss per share - basic and diluted	$ (0.01)	$ (0.11)
Weighted-average common shares - basic and diluted	28,371	22,913

UNAUDITED CONDENSED CONSOLIDA_3

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Other Comprehensive Income / Loss	Total
Beginning balance, shares at Jun. 30, 2019	22,812
Beginning balance, value at Jun. 30, 2019	$ 2	$ 226,274	$ (189,381)	$ 371	$ 37,266
Shares issued pursuant to stock awards, net shares	226
Shares issued pursuant to stock awards, net value		145			145
Tax withholding paid on behalf of employees for restricted shares		(127)			(127)
Share-based compensation		578			578
Net loss			(2,470)		(2,470)
Ending balance, shares at Sep. 30, 2019	23,038
Ending balance, value at Sep. 30, 2019	$ 2	226,870	(191,851)	371	35,392
Beginning balance, shares at Jun. 30, 2020	28,231
Beginning balance, value at Jun. 30, 2020	$ 3	246,265	(200,119)	371	46,520
Shares issued pursuant to stock awards, net shares	354
Shares issued pursuant to stock awards, net value		167			167
Tax withholding paid on behalf of employees for restricted shares		(489)			(489)
Share-based compensation		603			603
Net loss			(302)		(302)
Ending balance, shares at Sep. 30, 2020	28,585
Ending balance, value at Sep. 30, 2020	$ 3	$ 246,546	$ (200,421)	$ 371	$ 46,499

UNAUDITED CONDENSED CONSOLIDA_4

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Operating activities
Net loss	$ (302)	$ (2,470)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Share-based compensation	603	578
Depreciation and amortization	221	147
Amortization of purchased intangible assets	882	144
Amortization of manufacturing profit in acquired inventory associated with acquisition	7	171
Amortization of deferred debt issuance costs	7	0
Changes in operating assets and liabilities:
Accounts receivable	(934)	863
Inventories	(114)	(474)
Contract manufacturers' receivable	(214)	905
Prepaid expenses and other current assets	(400)	(304)
Other assets	362	74
Accounts payable	1,269	(381)
Accrued payroll and related expenses	(268)	279
Other liabilities	(289)	(611)
Net cash provided by (used in) operating activities	830	(1,079)
Investing activities
Purchases of property and equipment	(113)	(118)
Cash payment for acquisitions, net of cash and cash equivalents acquired	0	(5,073)
Net cash used in investing activities	(113)	(5,191)
Financing activities
Net proceeds from issuances of common stock	167	145
Tax withholding paid on behalf of employees for restricted shares	(489)	(127)
Payment of borrowings on term loan	(375)	0
Payment of lease liabilities	(2)	(2)
Net cash provided by (used in) financing activities	(699)	16
Increase (decrease) in cash, cash equivalents, and restricted cash	18	(6,254)
Cash and cash equivalents at beginning of period	7,691	18,282
Cash and cash equivalents at end of period	$ 7,709	$ 12,028

1. Overview, Basis of Presentat

1. Overview, Basis of Presentation and Significant Accounting Policies	3 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Overview, Basis of Presentation and Significant Accounting Policies	1. Overview, Basis of Presentation and Significant Accounting Policies Overview Lantronix, Inc., which we refer to herein as the Company, Lantronix, we, our, or us, is a global provider of software as a service (“SaaS”), engineering services, and hardware for Edge Computing, the Internet of Things (“IoT”), and Remote Environment Management (“REM”). Lantronix enables its customers to provide reliable and secure solutions while accelerating their time to market. Our products and services dramatically simplify operations through the creation, development, deployment, and management of customer projects at scale while providing quality, reliability and security. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Lantronix have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Securities and Exchange Commission (“SEC”) Regulation S-X. Accordingly, they should be read in conjunction with the audited consolidated financial statements and notes thereto for the fiscal year ended June 30, 2020, included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2020, which was filed with the SEC on September 11, 2020. The unaudited condensed consolidated financial statements contain all normal recurring accruals and adjustments that in the opinion of management, are necessary to present fairly the consolidated financial position of Lantronix at September 30, 2020, the consolidated results of our operations for the three months ended September 30, 2020 and our consolidated cash flows for the three months ended September 30, 2020. All intercompany accounts and transactions have been eliminated. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Accounting measurements at interim dates inherently involve greater reliance on estimates than at year-end. The inputs into certain of these estimates and assumptions include the consideration of the economic impact of the COVID-19 pandemic. Actual results could differ materially from these estimates, and such differences could affect the results of operations reported in future periods. As the extent to which the COVID-19 pandemic impacts our business, operations and financial results continues to develop, many of these estimates could require increased judgement and carry a higher degree of variability and volatility, and may change materially in future periods. The results of operations for the three months ended September 30, 2020 are not necessarily indicative of the results to be expected for the full year or any future interim periods. Reclassifications Certain reclassifications have been made to the prior fiscal year financial information to conform with the current fiscal year presentation. Recent Accounting Pronouncements Current Expected Credit Losses In June 2016, the Financial Accounting Standards Board (“FASB”) issued a new standard requiring financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The standard eliminates the threshold for initial recognition in current U.S. GAAP and reflects an entity’s current estimate of all expected credit losses. The measurement of expected credit losses is based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets. The standard is effective for Lantronix beginning in the first quarter of our fiscal year 2024. The adoption of this guidance is not expected to have a material effect on our consolidated financial statements.

2. Revenue

2. Revenue	3 Months Ended
	Sep. 30, 2020
Revenue from Contract with Customer [Abstract]
Revenue	2. Revenue Revenue is recognized upon the transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We apply the following five-step approach in determining the amount and timing of revenue to be recognized: (i) identifying the contract with a customer, (ii) identifying the performance obligations in the contract, (iii) determining the transaction price, (iv) allocating the transaction price to the performance obligations in the contract and (v) recognizing revenue when the performance obligation is satisfied. On occasion we enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of (i) any taxes collected from customers, which are subsequently remitted to governmental authorities and (ii) shipping and handling costs collected from customers. Products Most of our product revenue is recognized as a distinct single performance obligation when products are tendered to a carrier for delivery, which represents the point in time that our customer obtains control of the promised products. A smaller portion of our product revenue is recognized when our customer receives delivery of the promised products. A significant portion of our products are sold to distributors under agreements which contain (i) limited rights to return unsold products and (ii) price adjustment provisions, both of which are accounted for as variable consideration when estimating the amount of revenue to recognize. We base our estimates for returns and price adjustments primarily on historical experience; however, we also consider contractual allowances, approved pricing adjustments and other known or anticipated returns and price adjustments in a given period. Such estimates are generally made at the time of shipment to the customer and updated at the end of each reporting period as additional information becomes available and only to the extent that it is probable that a significant reversal of any incremental revenue will not occur. Our estimates of accrued variable consideration are included in other current liabilities in the accompanying condensed consolidated balance sheets. Services Revenues from our extended warranty and related services are generally recognized ratably over the applicable service period. Although not significant to date, revenues from sales of our SaaS solutions are recognized ratably over the applicable service period as well. Revenues from professional engineering services are generally recognized as services are performed. Revenues from our extended warranty and services are generally recognized ratably over the applicable service period. We expect revenues from future sales of our SaaS solutions to be recognized ratably over the applicable service period as well. Revenues from professional engineering services are generally recognized as services are performed. We derive a portion of our revenues from engineering and related consulting service contracts with customers. These contracts generally include performance obligations in which control is transferred over time because the customer either simultaneously receives and consumes the benefits provided or our performance on the contract creates or enhances an asset that the customer controls. These contracts typically provide services on the following basis: · Time & Materials (“T&M”) – services consist of revenues from software modification, consulting implementation, training and integration services. These services are set forth separately in the contractual arrangements such that the total price of the customer arrangement is expected to vary depending on the actual time and materials incurred based on the customer’s needs. · Fixed Price – arrangements to render specific consulting and software modification services which tend to be more complex. Performance obligations for T&M contracts qualify for the "Right to Invoice" practical expedient within the revenue guidance. Under this practical expedient, we may recognize revenue, over time, in the amount to which we have a right to invoice. In addition, we are not required to estimate variable consideration upon inception of the contract and reassess the estimate each reporting period. We have determined that this method best represents the transfer of services as, upon billing, we have a right to consideration from a customer in an amount that directly corresponds with the value to the customer of our performance completed to date. We recognize revenue on fixed price contracts, over time, using the proportion of our actual costs incurred (generally labor hours expended) to the total costs expected to complete the contract performance obligation. We determined that this method best represents the transfer of services as the proportion closely depicts the efforts or inputs completed towards the satisfaction of a fixed price contract performance obligation. Multiple Performance Obligations From time to time, we may enter into contracts with customers that include promises to transfer multiple deliverables that may include sales of products, professional engineering services and other product qualification or certification services. Determining whether the deliverables in such arrangements are considered distinct performance obligations that should be accounted for separately versus together often requires judgment. We consider performance obligations to be distinct when the customer can benefit from the promised good or service on its own or by combining it with other resources readily available and when the promised good or service is separately identifiable from other promised goods or services in the contract. In such arrangements, we allocate revenue on a relative standalone selling price basis by maximizing the use of observable inputs to determine the standalone selling price for each performance obligation. Net Revenue by Product Line and Geographic Region We organize our products and solutions into three product lines: IoT, REM and Other. Our IoT products typically connect to one or more existing machines or are built into new industrial devices to provide network connectivity. Our REM product line includes out-of-band management, console management, power management, and IP connected keyboard-video-mouse (commonly referred to as “IPKVM”) products that provide remote access to Information Technology (“IT”) and networking infrastructure deployed in test labs, data centers, branch offices and server rooms. We categorize products that are non-focus or end-of-life as Other. We conduct our business globally and manage our sales teams by three geographic regions: the Americas; Europe, Middle East, and Africa (“EMEA”); and Asia Pacific Japan (“APJ”). The following tables present our net revenue by product line and by geographic region. Net revenues by geographic region are based on the “bill-to” location of our customers: Three Months Ended September 30, 2020 2019 (In thousands) IoT $ 14,620 $ 10,221 REM 2,402 2,301 Other 124 219 $ 17,146 $ 12,741 Three Months Ended September 30, 2020 2019 (In thousands) Americas $ 10,929 $ 5,764 EMEA 2,639 4,521 Asia Pacific Japan 3,578 2,456 $ 17,146 $ 12,741 The following table presents product revenues and service revenues as a percentage of our total net revenue: Three Months Ended September 30, 2020 2019 Product revenues 94% 99% Service revenues 6% 1% Service revenue is comprised primarily of professional services, software license subscriptions, and extended warranties. Contract Balances In certain instances, the timing of revenue recognition may differ from the timing of invoicing to our customers. We record a contract asset receivable when revenue is recognized prior to invoicing, and a contract or deferred revenue liability when revenue is recognized subsequent to invoicing. With respec Deferred Revenue Deferred revenue is primarily comprised of unearned revenue related to our extended warranty services and certain software services. These services are generally invoiced at the beginning of the contract period and revenue is recognized ratably over the service period. Current and non-current deferred revenue balances represent revenue allocated to the remaining unsatisfied performance obligations at the end of a reporting period and are respectively included in other current liabilities and other non-current liabilities in the accompanying unaudited condensed consolidated balance sheets. The following table presents the changes in our deferred revenue balance for the three months ended September 30, 2020 (in thousands): Balance, June 30, 2020 $ 1,460 New performance obligations 134 Recognition of revenue as a result of satisfying performance obligations (704 ) Balance, September 30, 2020 $ 890 Less: non-current portion of deferred revenue (166 ) Current portion, September 30, 2020 $ 724 We currently expect to recognize substantially all of the non-current portion of deferred revenue over the next 2 to 4 years.

3. Supplemental Financial Infor

3. Supplemental Financial Information	3 Months Ended
	Sep. 30, 2020
Supplemental Financial Information
Supplemental Financial Information	3. Supplemental Financial Information Inventories Inventories are stated at the lower of cost (first-in, first-out) or net realizable value and consist of the following: September 30, June 30, 2020 2020 (In thousands) Finished goods $ 6,995 $ 7,522 Raw materials 6,893 6,259 Inventories, net $ 13,888 $ 13,781 Other Liabilities The following table presents details of our other liabilities: September 30, June 30, 2020 2020 (In thousands) Current Accrued variable consideration $ 1,395 $ 1,462 Customer deposits and refunds 631 628 Accrued raw materials purchases 103 272 Deferred revenue 724 658 Lease liability 1,285 1,273 Taxes payable 369 395 Warranty reserve 164 181 Accrued operating expenses 1,668 1,439 Total other current liabilities $ 6,339 $ 6,308 Non-current Lease liability $ 1,474 $ 1,796 Deferred revenue 166 166 Total other non-current liabilities $ 1,640 $ 1,962 Computation of Net Loss per Share Basic and diluted net loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the applicable period. The following table presents the computation of net loss per share: Three Months Ended September 30, 2020 2019 (In thousands, except per share data) Numerator: Net loss $ (302 ) $ (2,470 ) Denominator: Weighted-average common shares outstanding - basic and diluted 28,371 22,913 Net loss per share - basic and diluted $ (0.01 ) $ (0.11 ) The following table presents the common stock equivalents excluded from the diluted net loss per share calculation, because they were anti-dilutive for the periods presented. These excluded common stock equivalents could be dilutive in the future. Three Months Ended September 30, 2020 2019 (In thousands) Common stock equivalents 896 1,769 Purchased Intangible Assets The following table presents details of purchased intangible assets: September 30, 2020 June 30, 2020 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value (In thousands) Developed technology $ 3,841 $ (685 ) $ 3,156 $ 3,841 $ (497 ) $ 3,344 Customer relationship 9,030 (1,113 ) 7,917 9,030 (726 ) 8,304 Order backlog 840 (535 ) 305 840 (384 ) 456 Non-compete agreements 400 (280 ) 120 400 (184 ) 216 Trademark and trade name 375 (306 ) 69 375 (246 ) 129 $ 14,486 $ (2,919 ) $ 11,567 $ 14,486 $ (2,037 ) $ 12,449 We do not currently have any purchased intangible assets with indefinite useful lives. As of September 30, 2020, future estimated amortization expense is as follows: Years Ending June 30, (In thousands) 2021 (remainder) $ 2,212 2022 2,240 2023 2,240 2024 2,240 2025 1,784 Thereafter 851 $ 11,567 Restructuring, Severance and Related Charges The following table presents details of the liability we recorded related to restructuring, severance and related activities: Three Months Ended September 30, 2020 (In thousands) Beginning balance $ 615 Charges 92 Payments (682 ) Ending balance $ 25 The ending balance is recorded in accrued payroll and related expenses in the accompanying unaudited condensed consolidated balance sheet at September 30, 2020. Prior Fiscal Year During the three months ended September 30, 2019, we continued to execute on a plan to realign certain personnel resources to better fit our current business needs, primarily related to cost savings and synergies gained from the acquisition of Maestro Wireless Solutions Limited and its subsidiaries (together, “Maestro”). These activities resulted in a total charge of approximately $749,000. Supplemental Cash Flow Information The following table presents non-cash investing transactions excluded from the accompanying unaudited condensed consolidated statements of cash flows: Three Months Ended September 30, 2020 2019 (In thousands) Accrued property and equipment paid for in the subsequent period $ 76 $ 83

4. Warranty Reserve

4. Warranty Reserve	3 Months Ended
	Sep. 30, 2020
Product Warranties Disclosures [Abstract]
Warranty Reserve	4. Warranty Reserve The standard warranty periods we provide for our products typically range from one to five years. We establish reserves for estimated product warranty costs at the time revenue is recognized based upon our historical warranty experience, and for any known or anticipated product warranty issues. The following table presents details of our warranty reserve, which is included in other current liabilities in the unaudited condensed consolidated balance sheet: Three Months Ended Year Ended September 30, June 30, 2020 2020 (In thousands) Beginning balance $ 181 $ 116 Warranty reserve assumed from acquisition of Intrinsyc – 118 Charged to cost of revenue 102 181 Usage (119 ) (234 ) Ending balance $ 164 $ 181

5. Bank Loan Agreements

5. Bank Loan Agreements	3 Months Ended
	Sep. 30, 2020
Debt Disclosure [Abstract]
Bank Loan Agreements	5. Bank Loan Agreements In November 2019, we entered into a Second Amended and Restated Loan and Security Agreement (“Amended Agreement”) with Silicon Valley Bank (“SVB”), which amended, restated and superseded our previous agreement with SVB in its entirety. Pursuant to the Amended Agreement, SVB made available to us a senior secured revolving line of credit of up to $6,000,000 (“Revolving Facility”) and a senior secured term loan of $6,000,000 (“Term Loan Facility”). Advances under the Revolving Facility may be borrowed from time to time prior to November 12, 2021, subject to the satisfaction of certain conditions, and may be used to fund our working capital and general business requirements. The $6,000,000 proceeds of the Term Loan Facility were drawn in full in November 2019 and were used to fund our acquisition of Intrinsyc Technologies Corporation, which occurred in January 2020. The Revolving Facility matures on November 12, 2021. There were no borrowings on the Revolving Facility at September 30, 2020. The Term Loan Facility is repayable over a 48-month period, which commenced in January 2020. The interest rate on the Revolving Facility floats at a rate per annum equal to the greater of the prime rate and 5.00 percent. The interest rate on the Term Loan Facility floats at a rate per annum equal to the greater of 1.00 percent above the prime rate and 6.00 percent. We may elect to repay and reborrow the amounts outstanding under the Revolving Facility at any time prior to the maturity date of the Revolving Facility without premium or penalty. We may elect to repay the Term Loan Facility at any time without premium or penalty in minimum amounts equal to at least $1,000,000. A commitment fee in the amount of $60,000 was paid to SVB on the closing date and a $10,000 anniversary fee is payable to SVB on the earliest to occur of the one year anniversary of the effective date, the termination of the Amended Agreement or the Revolving Facility, or the occurrence of an event of default. The following table summarizes our outstanding debt: September 30, June 30, 2020 2020 (In thousands) Outstanding borrowings on Term Loan Facility $ 4,875 5,250 Less: Unamortized debt issuance costs (89 ) (96 ) Net Carrying amount of debt 4,786 5,154 Less: Current portion (1,472 ) (1,472 ) Non-current portion $ 3,314 3,682 During the three months ended September 30, 2020 we recognized $86,000 of interest expense in the accompanying unaudited condensed consolidated statement of operations related to interest and amortization of debt issuance associated with the outstanding Term Loan Facility. The Amended Agreement includes a financial covenant that requires that we maintain a minimum cash balance of $3,000,000 at SVB, as measured at the end of each month. The Amended Agreement also requires that we do not exceed a maximum leverage ratio, calculated as the ratio of funded debt to the consolidated trailing 12 month earnings before interest, taxes, depreciation and amortization, and certain other allowable exclusions of (i) 3.0 to 1.0 for each calendar quarter ending December 31, 2019 through and including December 31, 2020, (ii) 2.5 to 1.0 for each calendar quarter ending March 31, 2021 through and including December 31, 2021, and (iii) 2.0 to 1.0 for each calendar quarter ending after January 1, 2022. We are currently in compliance with all financial covenants.

6. Stockholders' Equity

6. Stockholders' Equity	3 Months Ended
	Sep. 30, 2020
Equity [Abstract]
Stockholders' Equity	6. Stockholders’ Equity Stock Incentive Plans Our stock incentive plans permit the granting of stock options (both incentive and nonqualified stock options), restricted stock units (“RSUs”), stock appreciation rights, non-vested stock, and performance share units (“PSUs”) to certain employees, directors and consultants. As of September 30, 2020, no stock appreciation rights or non-vested stock was outstanding. Stock Options The following table presents a summary of activity during the three months ended September 30, 2020 with respect to our stock options: Weighted- Average Number of Exercise Price Shares per Share (In thousands) Balance of options outstanding at June 30, 2020 2,055 $ 2.72 Forfeited (32 ) 1.70 Expired (4 ) 0.62 Exercised (199 ) 1.83 Balance of options outstanding at September 30, 2020 1,820 $ 2.83 Restricted Stock Units The following table presents a summary of activity during the three months ended September 30, 2020 with respect to our RSUs: Weighted- Average Grant Date Number of Fair Value Shares per Share (In thousands) Balance of RSUs outstanding at June 30, 2020 927 $ 3.93 Granted 215 4.71 Vested (89 ) 3.38 Forfeited (14 ) 2.80 Balance of RSUs outstanding at September 30, 2020 1,039 $ 4.05 Performance Stock Units The following table presents a summary of activity during the three months ended September 30, 2020 with respect to our PSUs: Number of Shares (In thousands) Balance of PSUs outstanding at June 30, 2020 985 Forfeited (115 ) Vested (201 ) Balance of PSUs outstanding at September 30, 2020 669 Employee Stock Purchase Plan Our 2013 Employee Stock Purchase Plan (“ESPP”) is intended to provide employees with an opportunity to purchase our common stock through accumulated payroll deductions at the end of a specified purchase period. Each of our employees (including officers) is eligible to participate in our ESPP, subject to certain limitations as set forth in our ESPP. The following table presents a summary of activity during the three months ended September 30, 2020 under our ESPP: Number of Shares (In thousands) Shares available for issuance at June 30, 2020 404 Shares issued – Shares available for issuance at September 30, 2020 404 Share-Based Compensation Expense The following table presents a summary of share-based compensation expense included in each functional line item on our accompanying unaudited condensed consolidated statements of operations: Three Months Ended September 30, 2020 2019 (In thousands) Cost of revenue $ 58 $ 24 Selling, general and administrative 445 459 Research and development 100 95 Total share-based compensation expense $ 603 $ 578 The following table presents the remaining unrecognized share-based compensation expense related to our outstanding share-based awards as of September 30, 2020: Remaining Remaining Unrecognized Weighted- Compensation Average Years Expense To Recognize (In thousands) Stock options $ 1,125 2.3 RSUs 3,795 3.3 PSUs 471 1.8 Stock purchase rights under ESPP 49 0.1 $ 5,440 If there are any modifications or cancellations of the underlying unvested share-based awards, we may be required to accelerate, increase or cancel remaining unearned share-based compensation expense. Future share-based compensation expense and unearned share-based compensation will increase to the extent that we grant additional share-based awards.

7. Income Taxes

7. Income Taxes	3 Months Ended
	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	7. Income Taxes We utilize the liability method of accounting for income taxes. The following table presents our effective tax rates based upon our provision for income taxes for the periods shown: Three Months Ended September 30, 2020 2019 Effective tax rate 20% 2% The difference between our effective tax rates in the periods presented above and the federal statutory rate is primarily due to a tax benefit from our domestic losses being recorded with a full valuation allowance, as well as the effect of foreign earnings taxed at rates differing from the federal statutory rate. We record net deferred tax assets to the extent we believe it is more likely than not that these assets will be realized. Due to our cumulative losses and uncertainty of generating future taxable income, we have provided a full valuation allowance against our net deferred tax assets as of September 30, 2020 and June 30, 2020.

8. Commitments and Contingencie

8. Commitments and Contingencies	3 Months Ended
	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	8. Commitments and Contingencies From time to time, we are involved in various legal proceedings and claims arising in the ordinary course of our business. Although the results of legal proceedings and claims cannot be predicted with certainty, we currently believe that the final outcome of these ordinary course matters will not, individually or in the aggregate, have a material adverse effect on our business, operating results, financial condition or cash flows. However, regardless of the outcome, litigation can have an adverse impact on us because of legal costs, diversion of management time and resources, and other factors.

1. Overview, Basis of Present_2

1. Overview, Basis of Presentation and Significant Accounting Policies (Policies)	3 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Overview	Overview Lantronix, Inc., which we refer to herein as the Company, Lantronix, we, our, or us, is a global provider of software as a service (“SaaS”), engineering services, and hardware for Edge Computing, the Internet of Things (“IoT”), and Remote Environment Management (“REM”). Lantronix enables its customers to provide reliable and secure solutions while accelerating their time to market. Our products and services dramatically simplify operations through the creation, development, deployment, and management of customer projects at scale while providing quality, reliability and security.
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Lantronix have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Securities and Exchange Commission (“SEC”) Regulation S-X. Accordingly, they should be read in conjunction with the audited consolidated financial statements and notes thereto for the fiscal year ended June 30, 2020, included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2020, which was filed with the SEC on September 11, 2020. The unaudited condensed consolidated financial statements contain all normal recurring accruals and adjustments that in the opinion of management, are necessary to present fairly the consolidated financial position of Lantronix at September 30, 2020, the consolidated results of our operations for the three months ended September 30, 2020 and our consolidated cash flows for the three months ended September 30, 2020. All intercompany accounts and transactions have been eliminated.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Accounting measurements at interim dates inherently involve greater reliance on estimates than at year-end. The inputs into certain of these estimates and assumptions include the consideration of the economic impact of the COVID-19 pandemic. Actual results could differ materially from these estimates, and such differences could affect the results of operations reported in future periods. As the extent to which the COVID-19 pandemic impacts our business, operations and financial results continues to develop, many of these estimates could require increased judgement and carry a higher degree of variability and volatility, and may change materially in future periods. The results of operations for the three months ended September 30, 2020 are not necessarily indicative of the results to be expected for the full year or any future interim periods.
Reclassifications	Reclassifications Certain reclassifications have been made to the prior fiscal year financial information to conform with the current fiscal year presentation.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Current Expected Credit Losses In June 2016, the Financial Accounting Standards Board (“FASB”) issued a new standard requiring financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The standard eliminates the threshold for initial recognition in current U.S. GAAP and reflects an entity’s current estimate of all expected credit losses. The measurement of expected credit losses is based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets. The standard is effective for Lantronix beginning in the first quarter of our fiscal year 2024. The adoption of this guidance is not expected to have a material effect on our consolidated financial statements.

2. Revenue (Tables)

2. Revenue (Tables)	3 Months Ended
	Sep. 30, 2020
Revenue from Contract with Customer [Abstract]
Net revenue by product lines	Three Months Ended September 30, 2020 2019 (In thousands) IoT $ 14,620 $ 10,221 REM 2,402 2,301 Other 124 219 $ 17,146 $ 12,741
Net revenue by geographic region	Three Months Ended September 30, 2020 2019 (In thousands) Americas $ 10,929 $ 5,764 EMEA 2,639 4,521 Asia Pacific Japan 3,578 2,456 $ 17,146 $ 12,741
Schedule of percentage total net revenue	The following table presents product revenues and service revenues as a percentage of our total net revenue: Three Months Ended September 30, 2020 2019 Product revenues 94% 99% Service revenues 6% 1%
Deferred revenue rollforward	The following table presents the changes in our deferred revenue balance for the three months ended September 30, 2020 (in thousands): Balance, June 30, 2020 $ 1,460 New performance obligations 134 Recognition of revenue as a result of satisfying performance obligations (704 ) Balance, September 30, 2020 $ 890 Less: non-current portion of deferred revenue (166 ) Current portion, September 30, 2020 $ 724

3. Supplemental Financial Inf_2

3. Supplemental Financial Information (Tables)	3 Months Ended
	Sep. 30, 2020
Supplemental Financial Information
Schedule of Inventory	Inventories are stated at the lower of cost (first-in, first-out) or net realizable value and consist of the following: September 30, June 30, 2020 2020 (In thousands) Finished goods $ 6,995 $ 7,522 Raw materials 6,893 6,259 Inventories, net $ 13,888 $ 13,781
Schedule of Other Liabilities	The following table presents details of our other liabilities: September 30, June 30, 2020 2020 (In thousands) Current Accrued variable consideration $ 1,395 $ 1,462 Customer deposits and refunds 631 628 Accrued raw materials purchases 103 272 Deferred revenue 724 658 Lease liability 1,285 1,273 Taxes payable 369 395 Warranty reserve 164 181 Accrued operating expenses 1,668 1,439 Total other current liabilities $ 6,339 $ 6,308 Non-current Lease liability $ 1,474 $ 1,796 Deferred revenue 166 166 Total other non-current liabilities $ 1,640 $ 1,962
Schedule of Computation of Net Income (Loss) per Share	The following table presents the computation of net loss per share: Three Months Ended September 30, 2020 2019 (In thousands, except per share data) Numerator: Net loss $ (302 ) $ (2,470 ) Denominator: Weighted-average common shares outstanding - basic and diluted 28,371 22,913 Net loss per share - basic and diluted $ (0.01 ) $ (0.11 )
Schedule of Common Stock Equivalents	The following table presents the common stock equivalents excluded from the diluted net loss per share calculation, because they were anti-dilutive for the periods presented. These excluded common stock equivalents could be dilutive in the future. Three Months Ended September 30, 2020 2019 (In thousands) Common stock equivalents 896 1,769
Schedule of intangible assets	The following table presents details of purchased intangible assets: September 30, 2020 June 30, 2020 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value (In thousands) Developed technology $ 3,841 $ (685 ) $ 3,156 $ 3,841 $ (497 ) $ 3,344 Customer relationship 9,030 (1,113 ) 7,917 9,030 (726 ) 8,304 Order backlog 840 (535 ) 305 840 (384 ) 456 Non-compete agreements 400 (280 ) 120 400 (184 ) 216 Trademark and trade name 375 (306 ) 69 375 (246 ) 129 $ 14,486 $ (2,919 ) $ 11,567 $ 14,486 $ (2,037 ) $ 12,449
Schedule of estimated amortization expense	As of September 30, 2020, future estimated amortization expense is as follows: Years Ending June 30, (In thousands) 2021 (remainder) $ 2,212 2022 2,240 2023 2,240 2024 2,240 2025 1,784 Thereafter 851 $ 11,567
Schedule of severance and related charges	The following table presents details of the liability we recorded related to restructuring, severance and related activities: Three Months Ended September 30, 2020 (In thousands) Beginning balance $ 615 Charges 92 Payments (682 ) Ending balance $ 25
Schedule of Supplemental Cash Flow Information	The following table presents non-cash investing transactions excluded from the accompanying unaudited condensed consolidated statements of cash flows: Three Months Ended September 30, 2020 2019 (In thousands) Accrued property and equipment paid for in the subsequent period $ 76 $ 83

4. Warranty Reserve (Tables)

4. Warranty Reserve (Tables)	3 Months Ended
	Sep. 30, 2020
Product Warranties Disclosures [Abstract]
Schedule of warranty reserve	The following table presents details of our warranty reserve, which is included in other current liabilities in the unaudited condensed consolidated balance sheet: Three Months Ended Year Ended September 30, June 30, 2020 2020 (In thousands) Beginning balance $ 181 $ 116 Warranty reserve assumed from acquisition of Intrinsyc – 118 Charged to cost of revenue 102 181 Usage (119 ) (234 ) Ending balance $ 164 $ 181

5. Bank Loan Agreements (Tables

5. Bank Loan Agreements (Tables)	3 Months Ended
	Sep. 30, 2020
Debt Disclosure [Abstract]
Summary of outstanding debt	The following table summarizes our outstanding debt: September 30, June 30, 2020 2020 (In thousands) Outstanding borrowings on Term Loan Facility $ 4,875 5,250 Less: Unamortized debt issuance costs (89 ) (96 ) Net Carrying amount of debt 4,786 5,154 Less: Current portion (1,472 ) (1,472 ) Non-current portion $ 3,314 3,682

6. Stockholders' Equity (Tables

6. Stockholders' Equity (Tables)	3 Months Ended
	Sep. 30, 2020
Schedule of share-based compensation expense by functional line item	The following table presents a summary of share-based compensation expense included in each functional line item on our accompanying unaudited condensed consolidated statements of operations: Three Months Ended September 30, 2020 2019 (In thousands) Cost of revenue $ 58 $ 24 Selling, general and administrative 445 459 Research and development 100 95 Total share-based compensation expense $ 603 $ 578
Schedule of unrecognized share-based compensation expense	The following table presents the remaining unrecognized share-based compensation expense related to our outstanding share-based awards as of September 30, 2020: Remaining Remaining Unrecognized Weighted- Compensation Average Years Expense To Recognize (In thousands) Stock options $ 1,125 2.3 RSUs 3,795 3.3 PSUs 471 1.8 Stock purchase rights under ESPP 49 0.1 $ 5,440
Stock Options [Member]
Summary of stock option activity	The following table presents a summary of activity during the three months ended September 30, 2020 with respect to our stock options: Weighted- Average Number of Exercise Price Shares per Share (In thousands) Balance of options outstanding at June 30, 2020 2,055 $ 2.72 Forfeited (32 ) 1.70 Expired (4 ) 0.62 Exercised (199 ) 1.83 Balance of options outstanding at September 30, 2020 1,820 $ 2.83
Restricted Stock Units (RSUs) [Member]
Summary of stock option activity	The following table presents a summary of activity during the three months ended September 30, 2020 with respect to our RSUs: Weighted- Average Grant Date Number of Fair Value Shares per Share (In thousands) Balance of RSUs outstanding at June 30, 2020 927 $ 3.93 Granted 215 4.71 Vested (89 ) 3.38 Forfeited (14 ) 2.80 Balance of RSUs outstanding at September 30, 2020 1,039 $ 4.05
Performance Stock Units [Member]
Summary of stock option activity	The following table presents a summary of activity during the three months ended September 30, 2020 with respect to our PSUs: Number of Shares (In thousands) Balance of PSUs outstanding at June 30, 2020 985 Forfeited (115 ) Vested (201 ) Balance of PSUs outstanding at September 30, 2020 669
ESPP [Member]
Summary of stock option activity	The following table presents a summary of activity during the three months ended September 30, 2020 under our ESPP: Number of Shares (In thousands) Shares available for issuance at June 30, 2020 404 Shares issued – Shares available for issuance at September 30, 2020 404

7. Income Taxes (Tables)

7. Income Taxes (Tables)	3 Months Ended
	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Schedule of Effective Income Tax Reconciliation	The following table presents our effective tax rates based upon our provision for income taxes for the periods shown: Three Months Ended September 30, 2020 2019 Effective tax rate 20% 2%

2. Revenue (Details - Revenues

2. Revenue (Details - Revenues by product line) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Revenues	$ 17,146	$ 12,741
IoT [Member]
Revenues	14,620	10,221
REM [Member]
Revenues	2,402	2,301
Other [Member]
Revenues	$ 124	$ 219

2. Revenue (Details - Revenue b

2. Revenue (Details - Revenue by Geography) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Revenues	$ 17,146	$ 12,741
Americas [Member]
Revenues	10,929	5,764
EMEA [Member]
Revenues	2,639	4,521
Asia Pacific [Member]
Revenues	$ 3,578	$ 2,456

2. Revenue (Details - Percentag

2. Revenue (Details - Percentage of total net revenue)	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Product [Member]
Concentration Risk, Percentage	94.00%	99.00%
Service [Member]
Concentration Risk, Percentage	6.00%	1.00%

2. Revenue (Details - Changes i

2. Revenue (Details - Changes in Deferred Revenue) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2020	Jun. 30, 2020
Revenue from Contract with Customer [Abstract]
Deferred revenue, beginning balance	$ 1,460
New performance obligations	134
Recognition of revenue as a result of satisying performance obligations	(704)
Deferred revenue, ending balance	890
Less: non-current portion of deferred revenue	(166)	$ (166)
Current portion ending balance	$ 724	$ 658

3. Supplemental Financial Inf_3

3. Supplemental Financial Information (Details - Inventories) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020
Supplemental Financial Information
Finished goods	$ 6,995	$ 7,522
Raw materials	6,893	6,259
Inventories, net	$ 13,888	$ 13,781

3. Supplemental Financial Inf_4

3. Supplemental Financial Information (Details - Other liabilities) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020
Current
Accrued variable consideration	$ 1,395	$ 1,462
Customer deposits and refunds	631	628
Accrued raw materials purchases	103	272
Deferred revenue	724	658
Lease liability	1,285	1,273
Taxes payable	369	395
Warranty reserve	164	181
Accrued operating expenses	1,668	1,439
Total other current liabilities	6,339	6,308
Non-current
Lease liability	1,474	1,796
Deferred revenue	166	166
Total other non-current liabilities	$ 1,640	$ 1,962

3. Supplemental Financial Inf_5

3. Supplemental Financial Information (Details - Net Loss per Share) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Numerator:
Net loss	$ (302)	$ (2,470)
Denominator:
Weighted-average common shares outstanding - basic and diluted	28,371	22,913
Net loss per share - basic and diluted	$ (0.01)	$ (0.11)

3. Supplemental Financial Inf_6

3. Supplemental Financial Information (Details - Equivalents) - shares shares in Thousands	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Supplemental Financial Information
Common stock equivalents	896	1,769

3. Supplemental Financial Inf_7

3. Supplemental Financial Information (Details - Purchased intangible assets) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020
Gross Carrying Amount	$ 14,486	$ 14,486
Accumulated Amortization	(2,919)	(2,037)
Net Book Value	11,567	12,449
Developed Technology [Member]
Gross Carrying Amount	3,841	3,841
Accumulated Amortization	(685)	(497)
Net Book Value	3,156	3,344
Customer relationship [Member]
Gross Carrying Amount	9,030	9,030
Accumulated Amortization	(1,113)	(726)
Net Book Value	7,917	8,304
Order backlog [Member]
Gross Carrying Amount	840	840
Accumulated Amortization	(535)	(384)
Net Book Value	305	456
Noncompete Agreements [Member]
Gross Carrying Amount	400	400
Accumulated Amortization	(280)	(184)
Net Book Value	120	216
Trademark and trade name [Member]
Gross Carrying Amount	375	375
Accumulated Amortization	(306)	(246)
Net Book Value	$ 69	$ 129

3. Supplemental Financial Inf_8

3. Supplemental Financial Information (Details - Amortization expense) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020
Supplemental Financial Information Details Amortization Expense Abstract
2021 (remainder)	$ 2,212
2022	2,240
2023	2,240
2024	2,240
2025	1,784
Thereafter	851
Total amortization expense	$ 11,567	$ 12,449

3. Supplemental Financial Inf_9

3. Supplemental Financial Information (Details - Severance of Related Charges) $ in Thousands	3 Months Ended
	Sep. 30, 2020USD ($)
Supplemental Financial Information
Severance payable, beginning balance	$ 615
Charges	92
Payments	(682)
Severance payable, ending balance	$ 25

3. Supplemental Financial In_10

3. Supplemental Financial Information (Details - Non-cash acquisition) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Supplemental Cash Flow Information
Accrued property and equipment paid for in the subsequent period	$ 76	$ 83

3. Supplemental Financial In_11

3. Supplemental Financial Information (Details Narrative) $ in Thousands	3 Months Ended
	Sep. 30, 2019USD ($)
Supplemental Financial Information
Severance costs	$ 749

4. Warranty Reserve (Details -

4. Warranty Reserve (Details - Warranty reserve) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2020	Jun. 30, 2020
Product Warranties Disclosures [Abstract]
Beginning balance	$ 181	$ 116
Warranty reserve assumed from acquisition of Intrinsyc	0	118
Charged to cost of revenue	102	181
Usage	(119)	(234)
Ending balance	$ 164	$ 181

5. Bank Loan Agreements (Detail

5. Bank Loan Agreements (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020
Debt Disclosure [Abstract]
Outstanding borrowings on Term Loan Facility	$ 4,875	$ 5,250
Less: Unamortized debt issuance costs	(89)	(96)
Net Carrying amount of debt	4,786	5,154
Less: Current portion	(1,472)	(1,472)
Non-current portion	$ 3,314	$ 3,682

5. Bank Loan Agreements (Deta_2

5. Bank Loan Agreements (Details Narrative) $ in Thousands	3 Months Ended
	Sep. 30, 2020USD ($)
Commitment fee	$ 60
Interest expense	86
Amended Agreement SVB [Member] | Revolving Facility [Member]
Credit line maximum borrowing amount	6,000
Senior secured term loan	$ 6,000
Maturity date	Nov. 12, 2021
Interest rate description	The interest rate on the Revolving Facility floats at a rate per annum equal to the greater of the prime rate and 5.00 percent.
Amended Agreement SVB [Member] | Term Loan Facility [Member]
Maturity date	Jan. 1, 2024
Interest rate description	The interest rate on the Term Loan Facility floats at a rate per annum equal to the greater of 1.00 percent above the prime rate and 6.00 percent.

6. Stockholders Equity (Details

6. Stockholders Equity (Details - Option activity) - Stock Options [Member] shares in Thousands	3 Months Ended
	Sep. 30, 2020$ / sharesshares
Number of shares
Number of Shares Options Outstanding, Beginning | shares	2,055
Number of Shares Options Forfeited | shares	(32)
Number of Shares Options Expired | shares	(4)
Number of Shares Options Exercised | shares	(199)
Number of Shares Options Outstanding, Ending | shares	1,820
Weighted Average Exercise Price per share
Exercise Price Outstanding, Beginning | $ / shares	$ 2.72
Exercise Price Forfeited | $ / shares	1.7
Exercise Price Expired | $ / shares	0.62
Exercise Price Exercised | $ / shares	1.83
Exercise Price Outstanding, Ending | $ / shares	$ 2.83

6. Stockholders Equity (Detai_2

6. Stockholders Equity (Details - RSU activity) - Restricted Stock Units (RSUs) [Member] shares in Thousands	3 Months Ended
	Sep. 30, 2020$ / sharesshares
Number of RSU's Shares
Balance at beginning | shares	927
Granted | shares	215
Vested | shares	(89)
Forfeited | shares	(14)
Balance at ending | shares	1,039
Weighted Average Grant Date Fair Value per share
RSU Shares Weighted-Average Grant-Date Fair Value per Share, beginning | $ / shares	$ 3.93
RSU Shares Granted, Weighted-Average Grant-Date Fair Value per Share | $ / shares	4.71
RSU Shares Vested, Weighted-Average Grant-Date Fair Value per Share | $ / shares	3.38
RSU Shares Forfeited, Weighed-Average Grant Date Fair Value per Share | $ / shares	2.8
RSU Shares Weighted-Average Grant-Date Fair Value per Share, ending | $ / shares	$ 4.05

6. Stockholders Equity (Detai_3

6. Stockholders Equity (Details - PSU activity) - Performance Stock Units [Member] shares in Thousands	3 Months Ended
	Sep. 30, 2020shares
Number of PSU's Shares
Balance at beginning	985
Forfeited	(115)
Vested	(201)
Balance at ending	669

6. Stockholders Equity (Detai_4

6. Stockholders Equity (Details - ESPP activity) - ESPP [Member] shares in Thousands	3 Months Ended
	Sep. 30, 2020shares
Shares available for issuance, beginning balance	404
Shares issued	0
Shares available for future issuance, ending balance	404

6. Stockholders Equity (Detai_5

6. Stockholders Equity (Details - Share based compensation) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Total share-based compensation	$ 603	$ 578
Cost of revenues [Member]
Total share-based compensation	58	24
Selling, general and administrative [Member]
Total share-based compensation	445	459
Research and development [Member]
Total share-based compensation	$ 100	$ 95

6. Stockholders Equity (Detai_6

6. Stockholders Equity (Details - Unrecognized expense) $ in Thousands	3 Months Ended
	Sep. 30, 2020USD ($)
Unrecognized share-based compensation expense	$ 5,440
Stock Options [Member]
Unrecognized share-based compensation expense	$ 1,125
Weighted average years to recognize	2 years 3 months 19 days
Restricted Stock Units (RSUs) [Member]
Unrecognized share-based compensation expense	$ 3,795
Weighted average years to recognize	3 years 3 months 19 days
Performance Stock Units (PSUs) [Member]
Unrecognized share-based compensation expense	$ 471
Weighted average years to recognize	1 year 9 months 18 days
ESPP [Member]
Unrecognized share-based compensation expense	$ 49
Weighted average years to recognize	1 month 6 days

7. Income Taxes (Details)

7. Income Taxes (Details)	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Effective tax rate	20.00%	2.00%