Lantronix (LTRX) 10-Q 12 Feb 21 2021 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2020	Feb. 05, 2021
Cover [Abstract]
Entity Registrant Name	LANTRONIX INC
Entity Central Index Key	0001114925
Document Type	10-Q
Document Period End Date	Dec. 31, 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		28,775,165
Document Fiscal Period Focus	Q2
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	Dec. 31, 2020	Jun. 30, 2020
Current assets:
Cash and cash equivalents	$ 7,621	$ 7,691
Accounts receivable, net	13,298	11,411
Inventories	14,304	13,781
Contract manufacturers' receivables	646	337
Prepaid expenses and other current assets	1,622	1,290
Total current assets	37,491	34,510
Property and equipment, net	1,589	1,587
Goodwill	15,810	15,810
Purchased intangible assets, net	10,688	12,449
Lease right-of-use assets	2,599	3,345
Other assets	244	232
Total assets	68,421	67,933
Current liabilities:
Accounts payable	7,472	5,331
Accrued payroll and related expenses	2,317	2,658
Short-term debt, net	1,472	1,472
Other current liabilities	6,808	6,308
Total current liabilities	18,069	15,769
Long-term debt, net	2,946	3,682
Other non-current liabilities	1,293	1,962
Total liabilities	22,308	21,413
Commitments and contingencies (Note 8)
Stockholders' equity:
Common stock	3	3
Additional paid-in capital	247,619	246,265
Accumulated deficit	(201,880)	(200,119)
Accumulated other comprehensive income	371	371
Total stockholders' equity	46,113	46,520
Total liabilities and stockholders' equity	$ 68,421	$ 67,933

UNAUDITED CONDENSED CONSOLIDA_2

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Income Statement [Abstract]
Net revenue	$ 16,585	$ 13,228	$ 33,731	$ 25,969
Cost of revenue	9,589	6,451	18,496	12,997
Gross profit	6,996	6,777	15,235	12,972
Operating expenses:
Selling, general and administrative	4,853	4,871	9,752	9,344
Research and development	2,449	2,336	5,021	4,957
Restructuring, severance and related charges	137	354	229	1,103
Acquisition-related costs	0	353	0	996
Amortization of purchased intangible assets	879	151	1,761	295
Total operating expenses	8,318	8,065	16,763	16,695
Loss from operations	(1,322)	(1,288)	(1,528)	(3,723)
Interest income (expense), net	(82)	(16)	(167)	40
Other income (expense), net	2	(10)	41	(53)
Loss before income taxes	(1,402)	(1,314)	(1,654)	(3,736)
Provision for income taxes	57	37	107	85
Net loss	$ (1,459)	$ (1,351)	$ (1,761)	$ (3,821)
Net loss per share - basic and diluted	$ (0.05)	$ (0.06)	$ (0.06)	$ (0.17)
Weighted-average common shares - basic and diluted	28,661	23,145	28,516	23,029

UNAUDITED CONDENSED CONSOLIDA_3

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Income	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	505
Shares issued pursuant to stock awards, net value		480			480
Tax withholding paid on behalf of employees for restricted shares		(163)			(163)
Share-based compensation		1,516			1,516
Net loss			(3,821)		(3,821)
Ending balance, shares at Dec. 31, 2019	23,317
Ending balance, value at Dec. 31, 2019	$ 2	228,107	(193,202)	371	35,278
Beginning balance, shares at Sep. 30, 2019	23,038
Beginning balance, value at Sep. 30, 2019	$ 2	226,870	(191,851)	371	35,392
Shares issued pursuant to stock awards, net shares	279
Shares issued pursuant to stock awards, net value		336			336
Tax withholding paid on behalf of employees for restricted shares		(37)			(37)
Share-based compensation		938			938
Net loss			(1,351)		(1,351)
Ending balance, shares at Dec. 31, 2019	23,317
Ending balance, value at Dec. 31, 2019	$ 2	228,107	(193,202)	371	35,278
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	536
Shares issued pursuant to stock awards, net value		435			435
Tax withholding paid on behalf of employees for restricted shares		(575)			(575)
Share-based compensation		1,494			1,494
Net loss			(1,761)		(1,761)
Ending balance, shares at Dec. 31, 2020	28,767
Ending balance, value at Dec. 31, 2020	$ 3	247,619	(201,880)	371	46,113
Beginning balance, shares at Sep. 30, 2020	28,585
Beginning balance, value at Sep. 30, 2020	$ 3	246,546	(200,421)	371	46,499
Shares issued pursuant to stock awards, net shares	182
Shares issued pursuant to stock awards, net value		268			268
Tax withholding paid on behalf of employees for restricted shares		(86)			(86)
Share-based compensation		891			891
Net loss			(1,459)		(1,459)
Ending balance, shares at Dec. 31, 2020	28,767
Ending balance, value at Dec. 31, 2020	$ 3	$ 247,619	$ (201,880)	$ 371	$ 46,113

UNAUDITED CONDENSED CONSOLIDA_4

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Operating activities
Net loss	$ (1,761)	$ (3,821)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Share-based compensation	1,494	1,516
Depreciation and amortization	442	303
Amortization of purchased intangible assets	1,761	295
Amortization of manufacturing profit in acquired inventory associated with acquisition	7	171
Amortization of deferred debt issuance costs	14	4
Changes in operating assets and liabilities:
Accounts receivable	(1,887)	(671)
Contract manufacturers' receivable	(530)	925
Inventories	(309)	951
Prepaid expenses and other current assets	(332)	(337)
Other assets	734	338
Accounts payable	1,986	(1,352)
Accrued payroll and related expenses	(341)	(61)
Other liabilities	(165)	(2,040)
Net cash provided by (used in) operating activities	1,113	(3,779)
Investing activities
Purchases of property and equipment	(289)	(280)
Cash payment for acquisition, net of cash and cash equivalents acquired	0	(5,073)
Net cash used in investing activities	(289)	(5,353)
Financing activities
Net proceeds from issuances of common stock	435	480
Tax withholding paid on behalf of employees for restricted shares	(575)	(163)
Net proceeds from issuance of debt	0	5,886
Payment of borrowings on term loan	(750)	0
Payment of lease liabilities	(4)	(6)
Net cash provided by (used in) financing activities	(894)	6,197
Increase (decrease) in cash, cash equivalents, and restricted cash	(70)	(2,935)
Cash and cash equivalents at beginning of period	7,691	18,282
Cash and cash equivalents at end of period	$ 7,621	$ 15,347

1. Overview, Basis of Presentat

1. Overview, Basis of Presentation and Significant Accounting Policies	6 Months Ended
	Dec. 31, 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 December 31, 2020, the consolidated results of our operations for the three and six months ended December 31, 2020 and our consolidated cash flows for the six months ended December 31, 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 impact of the COVID-19 pandemic 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 and six months ended December 31, 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	6 Months Ended
	Dec. 31, 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 unaudited 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. 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 December 31, Six Months Ended December 31, 2020 2019 2020 2019 (In thousands) (In thousands) IoT $ 13,402 $ 11,180 $ 28,022 $ 21,401 REM 3,095 1,832 5,497 4,133 Other 88 216 212 435 $ 16,585 $ 13,228 $ 33,731 $ 25,969 Three Months Ended December 31, Six Months Ended December 31, 2020 2019 2020 2019 (In thousands) (In thousands) Americas $ 8,023 $ 5,840 $ 18,952 $ 11,604 EMEA 4,740 4,362 7,379 8,883 Asia Pacific Japan 3,822 3,026 7,400 5,482 $ 16,585 $ 13,228 $ 33,731 $ 25,969 The following table presents product revenues and service revenues as a percentage of our total net revenue: Three Months Ended December 31, Six Months Ended December 31, 2020 2019 2020 2019 Product revenues 93% 99% 93% 99% Service revenues 7% 1% 7% 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 respect to product shipments, we expect to fulfill contract obligations within one year and so we have elected not to separately disclose the amount nor the timing of recognition of these remaining performance obligations. For contract balances related to contracts that include services and multiple performance obligations, refer to the deferred revenue discussion below. 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 six months ended December 31, 2020 (in thousands): Balance, June 30, 2020 $ 1,460 New performance obligations 356 Recognition of revenue as a result of satisfying performance obligations (912 ) Balance, December 31, 2020 $ 904 Less: non-current portion of deferred revenue (163 ) Current portion, December 31, 2020 $ 741 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	6 Months Ended
	Dec. 31, 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: December 31, June 30, 2020 2020 (In thousands) Finished goods $ 8,251 $ 7,522 Raw materials 6,053 6,259 Inventories $ 14,304 $ 13,781 Other Liabilities The following table presents details of our other liabilities: December 31, June 30, 2020 2020 (In thousands) Current Accrued variable consideration $ 1,451 $ 1,462 Customer deposits and refunds 796 628 Accrued raw materials purchases 110 272 Deferred revenue 741 658 Lease liability 1,292 1,273 Taxes payable 389 395 Warranty reserve 167 181 Accrued operating expenses 1,862 1,439 Total other current liabilities $ 6,808 $ 6,308 Non-current Lease liability $ 1,130 $ 1,796 Deferred revenue 163 166 Total other non-current liabilities $ 1,293 $ 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 Six Months Ended December 31, December 31, 2020 2019 2020 2019 (In thousands, except per share data) Numerator: Net loss $ (1,459 ) $ (1,351 ) $ (1,761 ) $ (3,821 ) Denominator: Weighted-average common shares outstanding - basic and diluted 28,661 23,145 28,516 23,029 Net loss per share - basic and diluted $ (0.05 ) $ (0.06 ) $ (0.06 ) $ (0.17 ) 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 Six Months Ended December 31, December 31, 2020 2019 2020 2019 (In thousands) Common stock equivalents 693 1,659 917 1,726 Purchased Intangible Assets The following table presents details of purchased intangible assets: December 31, 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 $ (873 ) $ 2,968 $ 3,841 $ (497 ) $ 3,344 Customer relationship 9,030 (1,498 ) 7,532 9,030 (726 ) 8,304 Order backlog 840 (686 ) 154 840 (384 ) 456 Non-compete agreements 400 (376 ) 24 400 (184 ) 216 Trademark and trade name 375 (365 ) 10 375 (246 ) 129 $ 14,486 $ (3,798 ) $ 10,688 $ 14,486 $ (2,037 ) $ 12,449 We do not currently have any purchased intangible assets with indefinite useful lives. As of December 31, 2020, future estimated amortization expense is as follows: Years Ending June 30, (In thousands) 2021 (remainder) $ 1,333 2022 2,240 2023 2,240 2024 2,240 2025 1,784 Thereafter 851 $ 10,688 Restructuring, Severance and Related Charges The following table presents details of the liability we recorded related to restructuring, severance and related activities: Six Months Ended December 31, 2020 (In thousands) Beginning balance $ 615 Charges 229 Payments (740 ) Ending balance $ 104 The ending balance is recorded in accrued payroll and related expenses in the accompanying unaudited condensed consolidated balance sheet at December 31, 2020. Prior Fiscal Year During the six months ended December 31, 2019, we continued a plan to realign certain personnel resources, particularly related to identifying cost savings and synergies to be gained from the acquisition of Maestro. These activities resulted in a total charge of approximately $1,103,000. Supplemental Cash Flow Information The following table presents non-cash investing transactions excluded from the accompanying unaudited condensed consolidated statements of cash flows: Six Months Ended December 31, 2020 2019 (In thousands) Accrued property and equipment paid for in the subsequent period $ 155 $ 133

4. Warranty Reserve

4. Warranty Reserve	6 Months Ended
	Dec. 31, 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: Six Months Ended Year Ended December 31, June 30, 2020 2020 (In thousands) Beginning balance $ 181 $ 116 Warranty reserve assumed from acquisition of Intrinsyc – 118 Charged to cost of revenue 184 181 Usage (198 ) (234 ) Ending balance $ 167 $ 181

5. Bank Loan Agreements

5. Bank Loan Agreements	6 Months Ended
	Dec. 31, 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 December 31, 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 was paid to SVB on the one-year anniversary of the effective date. The following table summarizes our outstanding debt: December 31, June 30, 2020 2020 (In thousands) Outstanding borrowings on Term Loan Facility $ 4,500 $ 5,250 Less: Unamortized debt issuance costs (82 ) (96 ) Net Carrying amount of debt 4,418 5,154 Less: Current portion (1,472 ) (1,472 ) Non-current portion $ 2,946 $ 3,682 During the three and six months ended December 31, 2020 we recognized $78,000 and $162,000 of interest expense, respectively, in the accompanying unaudited condensed consolidated statements 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	6 Months Ended
	Dec. 31, 2020
Equity [Abstract]
Stockholders' Equity	6. Stockholders’ Equity Stock Incentive Plans In November 2020, our stockholders voted to approve the 2020 Performance Incentive Plan (the “2020 Plan”), replacing our Amended and Restated 2010 Stock Incentive Plan (the “2010 Plan”), which expired in September 2020. At the 2010 Plan’s expiration date, approximately 1,097,000 shares of our common stock that remained available for award grants under the 2010 Plan became available for award grants under the 2020 Plan. An additional 2,500,000 shares our common stock are also available for award grants under the 2020 Plan. In addition, any shares of common stock subject to outstanding awards under the 2010 Plan that expire, are cancelled, or otherwise terminate after the expiration date of the 2010 Plan will be available for award grant purposes under the 2020 Plan. 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 December 31, 2020, no stock appreciation rights or non-vested stock was outstanding. Stock Options The following table presents a summary of activity during the six months ended December 31, 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 Granted 50 4.41 Forfeited (37 ) 1.80 Expired (10 ) 2.14 Exercised (249 ) 1.80 Balance of options outstanding at December 31, 2020 1,809 $ 2.91 Restricted Stock Units The following table presents a summary of activity during the six months ended December 31, 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 329 4.65 Vested (165 ) 3.71 Forfeited (18 ) 3.02 Balance of RSUs outstanding at December 31, 2020 1,073 $ 4.00 Performance Stock Units During the three months ended December 31, 2020, we granted 415,000 PSUs to certain executive employees. One third of the PSUs will be eligible to vest in each of the three years beginning in fiscal year ending June 30, 2021 if certain earnings per share and revenue targets are met. The following table presents a summary of activity during the six months ended December 31, 2020 with respect to our PSUs: Number of Shares (In thousands) Balance of PSUs outstanding at June 30, 2020 985 Granted 415 Forfeited (115 ) Vested (201 ) Balance of PSUs outstanding at December 31, 2020 1,084 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 six months ended December 31, 2020 under our ESPP: Number of Shares (In thousands) Shares available for issuance at June 30, 2020 404 Shares issued (69 ) Shares available for issuance at December 31, 2020 335 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 Six Months Ended December 31, December 31, 2020 2019 2020 2019 (In thousands) Cost of revenue $ 85 $ 48 $ 143 $ 72 Selling, general and administrative 671 777 1,116 1,236 Research and development 135 113 235 208 Total share-based compensation expense $ 891 $ 938 $ 1,494 $ 1,516 The following table presents the remaining unrecognized share-based compensation expense related to our outstanding share-based awards as of December 31, 2020: Remaining Remaining Unrecognized Weighted- Compensation Average Years Expense To Recognize (In thousands) Stock options $ 1,125 2.0 RSUs 3,926 2.9 PSUs 1,897 2.0 Stock purchase rights under ESPP 92 0.4 $ 7,040 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	6 Months Ended
	Dec. 31, 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 Six Months Ended December 31, December 31, 2020 2019 2020 2019 Effective tax rate 4% 3% 6% 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 December 31, 2020 and June 30, 2020.

8. Commitments and Contingencie

8. Commitments and Contingencies	6 Months Ended
	Dec. 31, 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)	6 Months Ended
	Dec. 31, 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 December 31, 2020, the consolidated results of our operations for the three and six months ended December 31, 2020 and our consolidated cash flows for the six months ended December 31, 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 impact of the COVID-19 pandemic 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 and six months ended December 31, 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)	6 Months Ended
	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Net revenue by product lines	Three Months Ended December 31, Six Months Ended December 31, 2020 2019 2020 2019 (In thousands) (In thousands) IoT $ 13,402 $ 11,180 $ 28,022 $ 21,401 REM 3,095 1,832 5,497 4,133 Other 88 216 212 435 $ 16,585 $ 13,228 $ 33,731 $ 25,969
Net revenue by geographic region	Three Months Ended December 31, Six Months Ended December 31, 2020 2019 2020 2019 (In thousands) (In thousands) Americas $ 8,023 $ 5,840 $ 18,952 $ 11,604 EMEA 4,740 4,362 7,379 8,883 Asia Pacific Japan 3,822 3,026 7,400 5,482 $ 16,585 $ 13,228 $ 33,731 $ 25,969
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 December 31, Six Months Ended December 31, 2020 2019 2020 2019 Product revenues 93% 99% 93% 99% Service revenues 7% 1% 7% 1%
Deferred revenue rollforward	The following table presents the changes in our deferred revenue balance for the six months ended December 31, 2020 (in thousands): Balance, June 30, 2020 $ 1,460 New performance obligations 356 Recognition of revenue as a result of satisfying performance obligations (912 ) Balance, December 31, 2020 $ 904 Less: non-current portion of deferred revenue (163 ) Current portion, December 31, 2020 $ 741

3. Supplemental Financial Inf_2

3. Supplemental Financial Information (Tables)	6 Months Ended
	Dec. 31, 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: December 31, June 30, 2020 2020 (In thousands) Finished goods $ 8,251 $ 7,522 Raw materials 6,053 6,259 Inventories $ 14,304 $ 13,781
Schedule of Other Liabilities	Other Liabilities The following table presents details of our other liabilities: December 31, June 30, 2020 2020 (In thousands) Current Accrued variable consideration $ 1,451 $ 1,462 Customer deposits and refunds 796 628 Accrued raw materials purchases 110 272 Deferred revenue 741 658 Lease liability 1,292 1,273 Taxes payable 389 395 Warranty reserve 167 181 Accrued operating expenses 1,862 1,439 Total other current liabilities $ 6,808 $ 6,308 Non-current Lease liability $ 1,130 $ 1,796 Deferred revenue 163 166 Total other non-current liabilities $ 1,293 $ 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 Six Months Ended December 31, December 31, 2020 2019 2020 2019 (In thousands, except per share data) Numerator: Net loss $ (1,459 ) $ (1,351 ) $ (1,761 ) $ (3,821 ) Denominator: Weighted-average common shares outstanding - basic and diluted 28,661 23,145 28,516 23,029 Net loss per share - basic and diluted $ (0.05 ) $ (0.06 ) $ (0.06 ) $ (0.17 )
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 Six Months Ended December 31, December 31, 2020 2019 2020 2019 (In thousands) Common stock equivalents 693 1,659 917 1,726
Schedule of intangible assets	The following table presents details of purchased intangible assets: December 31, 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 $ (873 ) $ 2,968 $ 3,841 $ (497 ) $ 3,344 Customer relationship 9,030 (1,498 ) 7,532 9,030 (726 ) 8,304 Order backlog 840 (686 ) 154 840 (384 ) 456 Non-compete agreements 400 (376 ) 24 400 (184 ) 216 Trademark and trade name 375 (365 ) 10 375 (246 ) 129 $ 14,486 $ (3,798 ) $ 10,688 $ 14,486 $ (2,037 ) $ 12,449
Schedule of estimated amortization expense	As of December 31, 2020, future estimated amortization expense is as follows: Years Ending June 30, (In thousands) 2021 (remainder) $ 1,333 2022 2,240 2023 2,240 2024 2,240 2025 1,784 Thereafter 851 $ 10,688
Schedule of severance and related charges	The following table presents details of the liability we recorded related to restructuring, severance and related activities: Six Months Ended December 31, 2020 (In thousands) Beginning balance $ 615 Charges 229 Payments (740 ) Ending balance $ 104
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: Six Months Ended December 31, 2020 2019 (In thousands) Accrued property and equipment paid for in the subsequent period $ 155 $ 133

4. Warranty Reserve (Tables)

4. Warranty Reserve (Tables)	6 Months Ended
	Dec. 31, 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: Six Months Ended Year Ended December 31, June 30, 2020 2020 (In thousands) Beginning balance $ 181 $ 116 Warranty reserve assumed from acquisition of Intrinsyc – 118 Charged to cost of revenue 184 181 Usage (198 ) (234 ) Ending balance $ 167 $ 181

5. Bank Loan Agreements (Tables

5. Bank Loan Agreements (Tables)	6 Months Ended
	Dec. 31, 2020
Debt Disclosure [Abstract]
Summary of outstanding debt	The following table summarizes our outstanding debt: December 31, June 30, 2020 2020 (In thousands) Outstanding borrowings on Term Loan Facility $ 4,500 $ 5,250 Less: Unamortized debt issuance costs (82 ) (96 ) Net Carrying amount of debt 4,418 5,154 Less: Current portion (1,472 ) (1,472 ) Non-current portion $ 2,946 $ 3,682

6. Stockholders' Equity (Tables

6. Stockholders' Equity (Tables)	6 Months Ended
	Dec. 31, 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 Six Months Ended December 31, December 31, 2020 2019 2020 2019 (In thousands) Cost of revenue $ 85 $ 48 $ 143 $ 72 Selling, general and administrative 671 777 1,116 1,236 Research and development 135 113 235 208 Total share-based compensation expense $ 891 $ 938 $ 1,494 $ 1,516
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 December 31, 2020: Remaining Remaining Unrecognized Weighted- Compensation Average Years Expense To Recognize (In thousands) Stock options $ 1,125 2.0 RSUs 3,926 2.9 PSUs 1,897 2.0 Stock purchase rights under ESPP 92 0.4 $ 7,040
Stock Options [Member]
Summary of stock option activity	The following table presents a summary of activity during the six months ended December 31, 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 Granted 50 4.41 Forfeited (37 ) 1.80 Expired (10 ) 2.14 Exercised (249 ) 1.80 Balance of options outstanding at December 31, 2020 1,809 $ 2.91
Restricted Stock Units (RSUs) [Member]
Summary of stock option activity	The following table presents a summary of activity during the six months ended December 31, 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 329 4.65 Vested (165 ) 3.71 Forfeited (18 ) 3.02 Balance of RSUs outstanding at December 31, 2020 1,073 $ 4.00
Performance Stock Units [Member]
Summary of stock option activity	The following table presents a summary of activity during the six months ended December 31, 2020 with respect to our PSUs: Number of Shares (In thousands) Balance of PSUs outstanding at June 30, 2020 985 Granted 415 Forfeited (115 ) Vested (201 ) Balance of PSUs outstanding at December 31, 2020 1,084
ESPP [Member]
Summary of stock option activity	The following table presents a summary of activity during the six months ended December 31, 2020 under our ESPP: Number of Shares (In thousands) Shares available for issuance at June 30, 2020 404 Shares issued (69 ) Shares available for issuance at December 31, 2020 335

7. Income Taxes (Tables)

7. Income Taxes (Tables)	6 Months Ended
	Dec. 31, 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 Six Months Ended December 31, December 31, 2020 2019 2020 2019 Effective tax rate 4% 3% 6% 2%

2. Revenue (Details - Revenues

2. Revenue (Details - Revenues by product line) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Revenues	$ 16,585	$ 13,228	$ 33,731	$ 25,969
IoT [Member]
Revenues	13,402	11,180	28,022	21,401
REM [Member]
Revenues	3,095	1,832	5,497	4,133
Other [Member]
Revenues	$ 88	$ 216	$ 212	$ 435

2. Revenue (Details - Revenue b

2. Revenue (Details - Revenue by Geography) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Revenues	$ 16,585	$ 13,228	$ 33,731	$ 25,969
Americas [Member]
Revenues	8,023	5,840	18,952	11,604
EMEA [Member]
Revenues	4,740	4,362	7,379	8,883
Asia Pacific [Member]
Revenues	$ 3,822	$ 3,026	$ 7,400	$ 5,482

2. Revenue (Details - Percentag

2. Revenue (Details - Percentage of total net revenue)	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Product [Member]
Concentration Risk, Percentage	93.00%	99.00%	93.00%	99.00%
Service [Member]
Concentration Risk, Percentage	7.00%	1.00%	7.00%	1.00%

2. Revenue (Details - Changes i

2. Revenue (Details - Changes in Deferred Revenue) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2020	Jun. 30, 2020
Revenue from Contract with Customer [Abstract]
Deferred revenue, beginning balance	$ 1,460
New performance obligations	356
Recognition of revenue as a result of satisying performance obligations	(912)
Deferred revenue, ending balance	904
Less: non-current portion of deferred revenue	(163)	$ (166)
Current portion ending balance	$ 741	$ 658

3. Supplemental Financial Inf_3

3. Supplemental Financial Information (Details - Inventories) - USD ($) $ in Thousands	Dec. 31, 2020	Jun. 30, 2020
Supplemental Financial Information
Finished goods	$ 8,251	$ 7,522
Raw materials	6,053	6,259
Inventories	$ 14,304	$ 13,781

3. Supplemental Financial Inf_4

3. Supplemental Financial Information (Details - Other liabilities) - USD ($) $ in Thousands	Dec. 31, 2020	Jun. 30, 2020
Current
Accrued variable consideration	$ 1,451	$ 1,462
Customer deposits and refunds	796	628
Accrued raw materials purchases	110	272
Deferred revenue	741	658
Lease liability	1,292	1,273
Taxes payable	389	395
Warranty reserve	167	181
Accrued operating expenses	1,862	1,439
Total other current liabilities	6,808	6,308
Non-current
Lease liability	1,130	1,796
Deferred revenue	163	166
Total other non-current liabilities	$ 1,293	$ 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		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Numerator:
Net loss	$ (1,459)	$ (1,351)	$ (1,761)	$ (3,821)
Denominator:
Weighted-average common shares outstanding - basic and diluted	28,661	23,145	28,516	23,029
Net loss per share - basic and diluted	$ (0.05)	$ (0.06)	$ (0.06)	$ (0.17)

3. Supplemental Financial Inf_6

3. Supplemental Financial Information (Details - Equivalents) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Supplemental Financial Information
Common stock equivalents	693	1,659	917	1,726

3. Supplemental Financial Inf_7

3. Supplemental Financial Information (Details - Purchased intangible assets) - USD ($) $ in Thousands	Dec. 31, 2020	Jun. 30, 2020
Gross Carrying Amount	$ 14,486	$ 14,486
Accumulated Amortization	(3,798)	(2,037)
Net Book Value	10,688	12,449
Developed Technology [Member]
Gross Carrying Amount	3,841	3,841
Accumulated Amortization	(873)	(497)
Net Book Value	2,968	3,344
Customer relationship [Member]
Gross Carrying Amount	9,030	9,030
Accumulated Amortization	(1,498)	(726)
Net Book Value	7,532	8,304
Order backlog [Member]
Gross Carrying Amount	840	840
Accumulated Amortization	(686)	(384)
Net Book Value	154	456
Noncompete Agreements [Member]
Gross Carrying Amount	400	400
Accumulated Amortization	(376)	(184)
Net Book Value	24	216
Trademark and trade name [Member]
Gross Carrying Amount	375	375
Accumulated Amortization	(365)	(246)
Net Book Value	$ 10	$ 129

3. Supplemental Financial Inf_8

3. Supplemental Financial Information (Details - Amortization expense) - USD ($) $ in Thousands	Dec. 31, 2020	Jun. 30, 2020
Supplemental Financial Information Details Amortization Expense Abstract
2021 (remainder)	$ 1,333
2022	2,240
2023	2,240
2024	2,240
2025	1,784
Thereafter	851
Total amortization expense	$ 10,688	$ 12,449

3. Supplemental Financial Inf_9

3. Supplemental Financial Information (Details - Severance of Related Charges) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Supplemental Financial Information
Severance payable, beginning balance	$ 615
Charges	229	$ 1,103
Payments	(740)
Severance payable, ending balance	$ 104

3. Supplemental Financial In_10

3. Supplemental Financial Information (Details - Non-cash acquisition) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Supplemental Cash Flow Information
Accrued property and equipment paid for in the subsequent period	$ 155	$ 133

3. Supplemental Financial In_11

3. Supplemental Financial Information (Details Narrative) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Supplemental Financial Information
Severance Costs	$ 229	$ 1,103

4. Warranty Reserve (Details -

4. Warranty Reserve (Details - Warranty reserve) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Dec. 31, 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	184	181
Usage	(198)	(234)
Ending balance	$ 167	$ 181

5. Bank Loan Agreements (Detail

5. Bank Loan Agreements (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Jun. 30, 2020
Debt Disclosure [Abstract]
Outstanding borrowings on Term Loan Facility	$ 4,500	$ 5,250
Less: Unamortized debt issuance costs	(82)	(96)
Net Carrying amount of debt	4,418	5,154
Less: Current portion	(1,472)	(1,472)
Non-current portion	$ 2,946	$ 3,682

5. Bank Loan Agreements (Deta_2

5. Bank Loan Agreements (Details Narrative) - USD ($) $ in Thousands	3 Months Ended	5 Months Ended		6 Months Ended
	Dec. 31, 2020	Nov. 30, 2020	Nov. 30, 2019	Dec. 31, 2020
Interest expense	$ 78			$ 162
Silicon Valley Bank [Member]
Commitment fee		$ 10	$ 60
Amended Agreement SVB [Member] | Revolving Facility [Member]
Credit line maximum borrowing amount	6,000			6,000
Senior secured term loan	$ 6,000			$ 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	6 Months Ended
	Dec. 31, 2020$ / sharesshares
Number of shares
Number of Shares Options Outstanding, Beginning | shares	2,055
Number of Shares Options Granted | shares	50
Number of Shares Options Forfeited | shares	(37)
Number of Shares Options Expired | shares	(10)
Number of Shares Options Exercised | shares	(249)
Number of Shares Options Outstanding, Ending | shares	1,809
Weighted Average Exercise Price per share
Exercise Price Outstanding, Beginning | $ / shares	$ 2.72
Exercise Price Granted | $ / shares	4.41
Exercise Price Forfeited | $ / shares	1.8
Exercise Price Expired | $ / shares	2.14
Exercise Price Exercised | $ / shares	1.8
Exercise Price Outstanding, Ending | $ / shares	$ 2.91

6. Stockholders Equity (Detai_2

6. Stockholders Equity (Details - RSU activity) - Restricted Stock Units (RSUs) [Member] shares in Thousands	6 Months Ended
	Dec. 31, 2020$ / sharesshares
Number of RSU's Shares
Balance at beginning | shares	927
Granted | shares	329
Vested | shares	(165)
Forfeited | shares	(18)
Balance at ending | shares	1,073
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	4.65
RSU Shares Vested, Weighted-Average Grant-Date Fair Value per Share | $ / shares	3.71
RSU Shares Forfeited, Weighed-Average Grant Date Fair Value per Share | $ / shares	3.02
RSU Shares Weighted-Average Grant-Date Fair Value per Share, ending | $ / shares	$ 4

6. Stockholders Equity (Detai_3

6. Stockholders Equity (Details - PSU activity) - Performance Stock Units [Member] shares in Thousands	6 Months Ended
	Dec. 31, 2020shares
Number of PSU's Shares
Balance at beginning	985
Granted	415
Forfeited	(115)
Vested	(201)
Balance at ending	1,084

6. Stockholders Equity (Detai_4

6. Stockholders Equity (Details - ESPP activity) - ESPP [Member] shares in Thousands	6 Months Ended
	Dec. 31, 2020shares
Shares available for issuance, beginning balance	404
Shares issued	(69)
Shares available for future issuance, ending balance	335

6. Stockholders Equity (Detai_5

6. Stockholders Equity (Details - Share based compensation) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Total share-based compensation	$ 891	$ 938	$ 1,494	$ 1,516
Cost of revenues [Member]
Total share-based compensation	85	48	143	72
Selling, general and administrative [Member]
Total share-based compensation	671	777	1,116	1,236
Research and development [Member]
Total share-based compensation	$ 135	$ 113	$ 235	$ 208

6. Stockholders Equity (Detai_6

6. Stockholders Equity (Details - Unrecognized expense) $ in Thousands	6 Months Ended
	Dec. 31, 2020USD ($)
Unrecognized share-based compensation expense	$ 7,040
Stock Options [Member]
Unrecognized share-based compensation expense	$ 1,125
Weighted average years to recognize	2 years
Restricted Stock Units (RSUs) [Member]
Unrecognized share-based compensation expense	$ 3,926
Weighted average years to recognize	2 years 10 months 25 days
Performance Stock Units (PSUs) [Member]
Unrecognized share-based compensation expense	$ 1,897
Weighted average years to recognize	2 years
ESPP [Member]
Unrecognized share-based compensation expense	$ 92
Weighted average years to recognize	4 months 24 days

6. Stockholders' Equity (Detail

6. Stockholders' Equity (Details Narrative) - shares shares in Thousands	6 Months Ended
	Dec. 31, 2020	Sep. 30, 2020
Performance Stock Units [Member]
Shares Granted	415
2020 Plan [Member]
Shares available for grant		1,097
Additional shares available for grant		2,500

7. Income Taxes (Details)

7. Income Taxes (Details)	3 Months Ended		6 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Effective tax rate	4.00%	3.00%	6.00%	2.00%