Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Sep. 10, 2015 | Dec. 31, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Electromed, Inc. | ||
Entity Central Index Key | 1,488,917 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 16,081,000 | ||
Entity Common Stock, Shares Outstanding | 8,163,857 |
Balance Sheets
Balance Sheets - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 |
Current Assets | ||
Cash | $ 3,598,240 | $ 1,502,702 |
Accounts receivable (net of allowances for doubtful accounts of $45,000) | 6,518,816 | 6,487,267 |
Inventories | 2,072,108 | 2,235,496 |
Prepaid expenses and other current assets | 397,833 | 397,853 |
Total current assets | 12,586,997 | 10,623,318 |
Property and equipment, net | 3,635,516 | 3,935,802 |
Finite-life intangible assets, net | 999,842 | 1,039,413 |
Other assets | 182,699 | 193,633 |
Total assets | 17,405,054 | 15,792,166 |
Current Liabilities | ||
Current maturities of long-term debt | 48,749 | 46,375 |
Accounts payable | 538,518 | 380,582 |
Accrued compensation | 700,370 | 391,040 |
Income tax payable | 122,657 | |
Warranty reserve | 660,000 | 700,000 |
Other accrued liabilities | 208,983 | 302,482 |
Total current liabilities | 2,279,277 | 1,820,479 |
Long-term debt, less current maturities | 1,202,446 | 1,251,192 |
Total liabilities | $ 3,481,723 | $ 3,071,671 |
Commitments and Contingencies | ||
Equity | ||
Common stock, $0.01 par value; authorized: 13,000,000; shares issued and outstanding: 8,133,857 and 8,114,252 at June 30, 2015 and June 30, 2014, respectively | $ 81,339 | $ 81,143 |
Additional paid-in capital | 13,327,320 | 13,217,166 |
Retained earnings (accumulated deficit) | 514,672 | (577,814) |
Total shareholders' equity | 13,923,331 | 12,720,495 |
Total liabilities and shareholders' equity | $ 17,405,054 | $ 15,792,166 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 |
Balance Sheets [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 45,000 | $ 45,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 13,000,000 | 13,000,000 |
Common stock, shares issued | 8,133,857 | 8,114,252 |
Common stock, shares outstanding | 8,133,857 | 8,114,252 |
Statements Of Operations
Statements Of Operations - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Statements Of Operations [Abstract] | ||
Net revenues | $ 19,408,385 | $ 15,487,875 |
Cost of revenues | 5,808,158 | 4,853,873 |
Gross profit | 13,600,227 | 10,634,002 |
Operating expenses | ||
Selling, general and administrative | 11,974,384 | 10,908,531 |
Research and development | 315,647 | 466,063 |
Total operating expenses | 12,290,031 | 11,374,594 |
Operating income (loss) | 1,310,196 | (740,592) |
Interest expense, net of interest income of $2,328 and $12,393, respectively | 85,710 | 79,002 |
Net income (loss) before income taxes | 1,224,486 | (819,594) |
Income tax expense | (132,000) | (469,000) |
Net income (loss) | $ 1,092,486 | $ (1,288,594) |
Income (loss) per share: | ||
Basic | $ 0.13 | $ (0.16) |
Diluted | $ 0.13 | $ (0.16) |
Weighted-average common shares outstanding: | ||
Basic | 8,115,595 | 8,114,252 |
Diluted | 8,153,703 | 8,114,252 |
Statements Of Operations (Paren
Statements Of Operations (Parenthetical) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Statements Of Operations [Abstract] | ||
Interest income | $ 2,328 | $ 12,393 |
Statements Of Shareholders' Equ
Statements Of Shareholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-In Capital [Member] | (Accumulated Deficit) Retained Earnings [Member] | Total |
Balance at Jun. 30, 2013 | $ 81,143 | $ 13,134,938 | $ 710,780 | $ 13,926,861 |
Balance, shares at Jun. 30, 2013 | 8,114,252 | |||
Net income (loss) | (1,288,594) | (1,288,594) | ||
Share-based compensation expense | 82,228 | 82,228 | ||
Balance at Jun. 30, 2014 | $ 81,143 | 13,217,166 | (577,814) | $ 12,720,495 |
Balance, shares at Jun. 30, 2014 | 8,114,252 | 8,114,252 | ||
Net income (loss) | 1,092,486 | $ 1,092,486 | ||
Issuance of restricted stock | $ 196 | (196) | ||
Issuance of restricted stock, shares | 19,605 | |||
Share-based compensation expense | 110,350 | 110,350 | ||
Balance at Jun. 30, 2015 | $ 81,339 | $ 13,327,320 | $ 514,672 | $ 13,923,331 |
Balance, shares at Jun. 30, 2015 | 8,133,857 | 8,133,857 |
Statements Of Cash Flows
Statements Of Cash Flows - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash Flows From Operating Activities | ||
Net income (loss) | $ 1,092,486 | $ (1,288,594) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation | 613,304 | 567,341 |
Amortization of finite-life intangible assets | 122,911 | 128,205 |
Amortization of debt issuance costs | 19,210 | 18,019 |
Share-based compensation expense | 110,350 | 82,228 |
Deferred income taxes | 454,000 | |
Loss on disposal of property and equipment and intangibles assets | 300,530 | 138,827 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (31,549) | 2,526,776 |
Inventories | 163,388 | (855,902) |
Income tax receivable | 538,285 | |
Prepaid expenses and other assets | 6,541 | 60,288 |
Accounts payable and accrued liabilities | 384,043 | (302,285) |
Net cash provided by operating activities | 2,781,214 | 2,067,188 |
Cash Flows From Investing Activities | ||
Expenditures for property and equipment | (523,185) | (895,177) |
Expenditures for finite-life intangible assets | (101,322) | (45,149) |
Net cash used in investing activities | (624,507) | (940,326) |
Cash Flows From Financing Activities | ||
Proceeds from long-term debt | 1,300,000 | |
Principal payments on long-term debt including capital lease obligations | (46,372) | (1,392,428) |
Payments of deferred financing fees | (14,797) | (35,296) |
Net cash used in financing activities | (61,169) | (127,724) |
Net increase in cash | 2,095,538 | 999,138 |
Cash | ||
Beginning of period | 1,502,702 | 503,564 |
End of period | 3,598,240 | 1,502,702 |
Supplemental Disclosures of Cash Flow Information | ||
Cash paid for interest | 68,932 | 78,812 |
Cash paid for income taxes | 2,598 | 7,329 |
Supplemental Disclosures of Noncash Investing and Financing Activities | ||
Property and equipment and finite-life intangible assets acquisitions included in accounts payable | $ 78,081 | $ 5,700 |
Nature Of Business And Summary
Nature Of Business And Summary Of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2015 | |
Nature Of Business And Summary Of Significant Accounting Policies [Abstract] | |
Nature Of Business And Summary Of Significant Accounting Policies | Note 1. Nature of Business and Summary of Significant Accounting Policies Nature of business: 854,000 801,000 A summary of the Company's significant accounting policies follows: Use of estimates: Revenue recognition: Direct patient sales are recorded at amounts to be received from patients under reimbursement arrangements with third-party payers, including private insurers, prepaid health plans, Medicare and Medicaid. In addition, the Company records an estimate for selling price adjustments that often arise from changes in a patient's insurance coverage, changes in a patient's domicile, insurance company coverage limitations or patient death. Other than the installment sales as discussed below, the Company expects to receive payment on the vast majority of accounts receivable within one year and therefore has classified all accounts receivable as current. However, in some instances, payment for direct patient sales can be delayed or interrupted, resulting in a portion of collections occurring later than one year. Certain third-party reimbursement agencies pay the Company on a monthly installment basis, which can span over several years. Due to the length of time over which cash is collected and the inherent uncertainty of collectability with these installment sales, the Company cannot make a reasonable estimate of revenue at the time of sale and does not record accounts receivable or revenue at the time of product shipment. Under the installment method, the Company defers the revenue associated with the sale and, as each installment is received, that amount is recognized as revenue. Deferred costs associated with the sale are amortized to cost of revenue ratably over the estimated period in which collections are scheduled to occur. Sales made under the installment method were as follows: Years Ended June 30, 2015 2014 Revenue recognized under installment sales $ 1,487,000 $ 1,100,000 Amortized cost of revenues recognized 168,000 149,000 Unrecognized installment method sales were as follows: June 30, 2015 2014 Estimated unrecognized sales, net of discounts $ 2,053,000 $ 1,908,000 Unamortized costs of revenues included in prepaid and other current assets and other assets 315,000 305,000 Shipping and handling expense: 295,000 290,000 Cash: Accounts receivable: 45,000 Inventories: Property and equipment: Finite-life intangible assets: Long-lived assets: If the Company believes the carrying value is unrecoverable, it would recognize an impairment charge necessary to reduce the unamortized balance to the estimated fair value of the asset or asset group. The amount of such impairment would be charged to operations in the current period. Warranty liability: three all C hanges in the Company's warranty liability were approximately as follows: Years Ended June 30, 2015 2014 Beginning warranty reserve $ 700,000 $ 680,000 Accrual for products sold 139,000 196,000 Expenditures and costs incurred for warranty claims (179,000 ) (176,000 ) Ending warranty reserve $ 660,000 $ 700,000 Income taxes: The Company recognizes tax liabilities when the Company believes that certain positions may not be fully sustained upon review by tax authorities. Benefits from tax positions are measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences impact income tax expense in the period in which such determination is made. Interest and penalties, if any, related to accrued liabilities for potential tax assessments are included in income tax expense. Research and development: Advertising costs: 336,000 499,000 Share-based payments: Fair value of financial instruments: Basic and diluted earnings (loss) per share: assume the conversion, exercise or issuance of all potential common stock instruments unless their effect is anti-dilutive, thereby reducing the earnings or increasing the earnings per share. Common stock equivalents of 539,900 604,900 New Accounting Pronouncements: In April 2015, the FASB issued ASU 2015-03, "Simplifying the Presentation of Debt Issuance Costs." This standard, which will be effective July 1, 2016 for the Company, requires that debt issuance costs be presented as a direct deduction from the carrying amount of long-term debt on the balance sheet. The new guidance aligns the presentation of debt issuance costs with debt discounts and premiums. The standard is to be applied retrospectively to all prior periods presented. As of June 30, 2015, the Company had approximately $ 21,000 In July 2015, the FASB issued ASU 2015-11, "Inventory (Topic 330) Related to Simplifying the Measurement of Inventory," that applies to all inventory except that which is measured using last-in, first-out (LIFO) or the retail inventory method. Inventory measured using first-in, first-out (FIFO) or average cost is within the scope of the new guidance and should be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable cost of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO of the retail inventory method. The amendments are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The new guidance should be applied prospectively, and earlier application is permitted as of the beginning of an interim or annual reporting period. The Company is evaluating the impact of the standard on its financial statements. Reclassifications: |
Inventories
Inventories | 12 Months Ended |
Jun. 30, 2015 | |
Inventories [Abstract] | |
Inventories | Note 2. Inventories The components of inventories at June 30, 2015 and 2014 were approximately as follows: June 30, 2015 2014 Parts inventory $ 1,527,000 $ 1,491,000 Work in process 245,000 264,000 Finished goods 440,000 510,000 Less: Reserve for obsolescence (140,000 ) (30,000 ) Total $ 2,072,000 $ 2,235,000 |
Property And Equipment
Property And Equipment | 12 Months Ended |
Jun. 30, 2015 | |
Property And Equipment [Abstract] | |
Property And Equipment | Note 3. Property and Equipment Property and equipment, including assets under capital leases, were approximately as follows: Estimated Useful June 30, Lives (Years) 2015 2014 Building and building improvements 15 39 $ 2,236,000 $ 2,236,000 Land N/A 200,000 200,000 Land improvements 15 162,000 162,000 Equipment 3 7 2,596,000 2,476,000 Demonstration and rental equipment 3 1,070,000 1,213,000 6,264,000 6,287,000 Less: Accumulated depreciation (2,628,000 ) (2,351,000 ) Net property and equipment $ 3,636,000 $ 3,936,000 During the years ended June 30, 2015 and 2014, the Company impaired or disposed of certain property and equipment, no longer in use, with a net value of approximately $ 268,000 76,000 118,000 No |
Finite-Life Intangible Assets
Finite-Life Intangible Assets | 12 Months Ended |
Jun. 30, 2015 | |
Finite-Life Intangible Assets [Abstract] | |
Finite-Life Intangible Assets | Note 4. Finite-life Intangible Assets The carrying value of patents and trademarks includes the original cost of obtaining the patents, periodic renewal fees, and other costs associated with maintaining and defending patent and trademark rights. Patents and trademarks are amortized over their estimated useful lives, generally 15 12 698,000 576,000 The activity and balances of finite-life intangible assets were approximately as follows: Years Ended June 30, 2015 2014 Balance, beginning $ 1,039,000 $ 1,186,000 Additions 116,000 45,000 Abandonments (32,000 ) (63,000 ) Amortization expense (123,000 ) (129,000 ) Balance, ending $ 1,000,000 $ 1,039,000 Based on the carrying value at June 30, 2015, future amortization expense is expected to be approximately $ 121,000 |
Financing Arrangements
Financing Arrangements | 12 Months Ended |
Jun. 30, 2015 | |
Financing Arrangements [Abstract] | |
Financing Arrangements | Note 5. Financing Arrangements The Company has a credit facility that provides for a revolving line of credit and a term loan. On December 18, 2014, the Company renewed its $ 2,500,000 no 1.00 4.50 4.50 2,500,000 57.00 2,500,000 December 18, 2015 As a part of the credit facility, the Company has a term loan, which had an outstanding principal balance of approximately $ 1,241,000 1,280,000 5.00 8,600 1,095,000 December 18, 2018 The Company's credit facility contains certain financial and nonfinancial covenants that include a minimum tangible net worth covenant of not less than $ 10,125,000 Long-term debt consists of approximately the following as of June 30, 2015 and 2014: June 30 2015 2014 Mortgage note payable with bank, due in monthly installments of $ 8,632 5.0 December 2018 $ 1,241,000 $ 1,280,000 Capital lease obligation, due in monthly installments of $ 648 6.99 November 2016 10,000 17,000 Total 1,251,000 1,297,000 Less: Current portion 49,000 46,000 Long-term debt $ 1,202,000 $ 1,251,000 Approximate future maturities of long-term debt, including capital lease obligations, as of June 30, 2015 were as follows: Year ending June 30: 2016 $ 49,000 2017 46,000 2018 46,000 2019 1,110,000 Total $ 1,251,000 Capital leases: At June 30, 2015 and 2014, the carrying value of assets under these capital leases was approximately as follows: June 30 2015 2014 Fixtures and office equipment $ 33,000 $ 33,000 Less: Accumulated depreciation (12,000 ) (9,000 ) Total $ 21,000 $ 24,000 Depreciation expense for these assets was approximately $ 3,000 Approximate future minimum payments under capital leases as of June 30, 2015 are as follows: Year ending June 30: 2016 $ 8,000 2017 3,000 Total 11,000 Less: Amount representing interest (1,000 ) Present value of future minimum lease payments (included in long term debt above) $ 10,000 |
Common Stock
Common Stock | 12 Months Ended |
Jun. 30, 2015 | |
Common Stock [Abstract] | |
Common Stock | Note 6. Common Stock Authorized shares: 15,000,000 13,000,000 0.01 2,000,000 |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Jun. 30, 2015 | |
Share-Based Payments [Abstract] | |
Share-Based Payments | Note 7. Share-Based Payments Employee options: four ten five 650,000 450,800 no 630,395 The Company recognizes compensation expense related to share-based payment transactions in the financial statements based on the estimated fair value of the award issued. The fair value of each option is estimated using the Black-Scholes pricing model at the time of award grant. The Company estimates the expected life of options based on the expected holding period by the option holder. The risk-free interest rate is based upon observed U.S. Treasury interest rates for the expected term of the options. The Company makes assumptions with respect to expected stock price volatility based upon the volatility of its stock price and the volatility of similar companies. Forfeitures are estimated at the time of grant and revised in subsequent periods if actual forfeitures differ from initial estimates. Forfeitures are estimated based on the percentage of awards expected to vest, taking into consideration the seniority level of the award recipient. Share-based compensation expense for the years ended June 30, 2015 and 2014 was approximately $ 110,000 82,000 The following assumptions were used to estimate the fair value of options granted: Years Ended June 30, 2015 2014 Risk-free interest rate 2.5 % 2.5 % Expected term (years) 10 10 Expected volatility 57.0 % 57.1 % The following table presents employee option activity for the years ended June 30, 2015 and 2014: Number of Weighted- Weighted- Weighted- Options outstanding at June 30, 2013 365,800 $ 1.97 $ 3.27 5.98 Granted 25,000 0.88 1.31 - Canceled or forfeited (20,000 ) 1.66 3.87 - Options outstanding at June 30, 2014 370,800 1.91 3.11 5.32 Granted 80,000 0.95 1.40 - Options outstanding at June 30, 2015 450,800 1.74 2.80 5.15 Options exercisable at June 30, 2015 389,134 1.87 3.03 4.56 There were no At June 30, 2015, the Company had approximately $ 32,000 1.4 Options issued in conjunction with the initial public offering: 190,000 4.80 August 2015 Warrants issued with convertible debt: 3.00 44,000 3.00 September 2015 no Restricted stock: 6 Restricted Stock Weighted-Average Outstanding at June 30, 2014 - - Granted 19,605 $2.55 Vested (19,605 ) $2.55 Outstanding at June 30, 2015 - |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | Note 8. Income Taxes Components of the provision for income taxes for the years ended June 30, 2015 and 2014 were as follows: Years Ended June 30, 2015 2014 Current $ 132,000 $ 15,000 Deferred — 454,000 Total $ 132,000 $ 469,000 The total income tax (benefit) expense differed from the expected tax (benefit) expense, computed by applying the federal statutory rate to the Company's income (loss) before income taxes, as follows: Years Ended June 30, 2015 2014 Tax expense (benefit) at statutory federal rate $ 416,000 $ (279,000 ) State income tax expense (benefit), net of federal tax effect 46,000 (30,000 ) Change in valuation allowance on deferred tax assets (419,000 ) 727,000 Other permanent items 89,000 51,000 Income tax expense $ 132,000 $ 469,000 The significant components of deferred income taxes were as follows: June 30, 2015 2014 Deferred tax assets (liabilities): Revenue recognition and accounts receivable $ 179,000 $ 224,000 Accrued liabilities 281,000 289,000 Property and equipment (549,000 ) (434,000 ) Finite-life intangible assets (18,000 ) (56,000 ) Stock options 306,000 317,000 Tax credits and net operating loss carryforwards 53,000 368,000 Other 56,000 19,000 Valuation allowance on deferred taxes (308,000 ) (727,000 ) Net deferred tax assets $ — $ — The majority of the Company's tax credits and net operating loss carryforwards will expire in fiscal years ending June 30, 2028 and 2029. The effective tax rates for the years ended June 30, 2015 and 2014 were 10.8 57.2 454,000 The Company assesses whether a valuation allowance should be established against its deferred tax assets based on consideration of all available evidence, using a "more likely than not" standard. In assessing the need for a valuation allowance, the Company considered both positive and negative evidence related to the likelihood of realization of deferred tax assets. In making such assessments, more weight was given to evidence that could be objectively verified. The Company's cumulative losses were given more weight than its recent profits and future outlook. Under this approach, the cumulative loss is significant negative evidence that impairs the Company's ability to rely on future taxable income projections in determining whether a valuation allowance is appropriate. Future sources of taxable income considered in determining the amount of recorded valuation allowance included: • Taxable income in prior carryback years, if carryback is permitted under the tax law; • Future reversals of existing taxable temporary differences, excluding those related to indefinite-lived intangible assets; • Tax planning strategies; and • Future taxable income exclusive of reversing temporary differences and carryforwards. Based on the evaluation of these factors the Company determined that a full valuation allowance remains appropriate at June 30, 2015. However, given the Company's current earnings and anticipated future earnings, it believes that there is a reasonable possibility that within the next 12 months, sufficient positive evidence may become available to allow it to reach a conclusion that a significant portion, if not all, of the valuation allowance will no longer be needed. Release of the valuation allowance would result in the recognition of certain net deferred tax assets and a decrease to income tax expense for the period the release is recorded. The exact timing and amount of the valuation allowance release are subject to change on the basis of the level of profitability that the Company is able to actually achieve. The Company applies the accounting standard for uncertain tax positions pursuant to which a more-likely-than-not threshold is utilized to determine the recognition and derecognition of uncertain tax positions. Once the more-likely-than-not threshold is met, the amount of benefit to be recognized is the largest amount of tax benefit that is greater than 50 percent likely of being ultimately realized upon settlement. It further requires that a change in judgment related to the expected ultimate resolution of uncertain tax positions be recognized in earnings in the period of such a change. We have unrecognized tax benefits in the amounts of $ 38,000 40,000 2,000 22,000 The Company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense. During the fiscal year ended June 30, 2015 and 2014, the amount of recognized interest expense, net of tax benefit, and accrued interest on a gross basis was insignificant. The Company is subject to U.S. federal income tax as well as income tax of multiple state jurisdictions. With limited exceptions, tax years prior to fiscal 2012 are no longer open to federal, state and local examination by taxing authorities. |
Commitments And Contingencies A
Commitments And Contingencies And Subsequent Events | 12 Months Ended |
Jun. 30, 2015 | |
Commitments And Contingencies And Subsequent Events [Abstract] | |
Commitments And Contingencies And Subsequent Events | Note 9. Commitments and Contingencies and Subsequent Events Operating leases: 24 - 48 two 3,700 5,200 June 2017 July 2016 225,000 269,000 Approximate future minimum operating lease payments as of June 30, 2015 were as follows: Year ending June 30: 2016 $ 174,000 2017 93,000 2018 29,000 Total $ 296,000 Litigation: 34,000 211,000 401(k) Profit Sharing Plan: 21 1,000 165,000 154,000 Employment Agreements: one six |
Related Parties
Related Parties | 12 Months Ended |
Jun. 30, 2015 | |
Related Parties [Abstract] | |
Related Parties | Note 10. Related Parties The Company uses a parts supplier whose founder and president is a director of the Company, and is currently chairman of the Company's board of directors. The Company made payments to the supplier of approximately $ 101,000 237,000 |
Nature Of Business And Summar18
Nature Of Business And Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Jun. 30, 2015 | |
Nature Of Business And Summary Of Significant Accounting Policies [Abstract] | |
Nature Of Business | Nature of business: |
Use Of Estimates | Use of estimates: |
Revenue Recognition | Revenue recognition: Direct patient sales are recorded at amounts to be received from patients under reimbursement arrangements with third-party payers, including private insurers, prepaid health plans, Medicare and Medicaid. In addition, the Company records an estimate for selling price adjustments that often arise from changes in a patient's insurance coverage, changes in a patient's domicile, insurance company coverage limitations or patient death. Other than the installment sales as discussed below, the Company expects to receive payment on the vast majority of accounts receivable within one year and therefore has classified all accounts receivable as current. However, in some instances, payment for direct patient sales can be delayed or interrupted, resulting in a portion of collections occurring later than one year. Certain third-party reimbursement agencies pay the Company on a monthly installment basis, which can span over several years. Due to the length of time over which cash is collected and the inherent uncertainty of collectability with these installment sales, the Company cannot make a reasonable estimate of revenue at the time of sale and does not record accounts receivable or revenue at the time of product shipment. Under the installment method, the Company defers the revenue associated with the sale and, as each installment is received, that amount is recognized as revenue. Deferred costs associated with the sale are amortized to cost of revenue ratably over the estimated period in which collections are scheduled to occur. Sales made under the installment method were as follows: Years Ended June 30, 2015 2014 Revenue recognized under installment sales $ 1,487,000 $ 1,100,000 Amortized cost of revenues recognized 168,000 149,000 Unrecognized installment method sales were as follows: June 30, 2015 2014 Estimated unrecognized sales, net of discounts $ 2,053,000 $ 1,908,000 Unamortized costs of revenues included in prepaid and other current assets and other assets 315,000 305,000 |
Shipping And Handling Expense | Shipping and handling expense: 295,000 290,000 |
Cash | Cash: |
Accounts Receivable | Accounts receivable: 45,000 |
Inventories | Inventories: |
Property And Equipment | Property and equipment: |
Finite-Life Intangible Assets | Finite-life intangible assets: |
Long-Lived Assets | Long-lived assets: If the Company believes the carrying value is unrecoverable, it would recognize an impairment charge necessary to reduce the unamortized balance to the estimated fair value of the asset or asset group. The amount of such impairment would be charged to operations in the current period. |
Warranty Liability | Warranty liability: three all C hanges in the Company's warranty liability were approximately as follows: Years Ended June 30, 2015 2014 Beginning warranty reserve $ 700,000 $ 680,000 Accrual for products sold 139,000 196,000 Expenditures and costs incurred for warranty claims (179,000 ) (176,000 ) Ending warranty reserve $ 660,000 $ 700,000 |
Income Taxes | Income taxes: The Company recognizes tax liabilities when the Company believes that certain positions may not be fully sustained upon review by tax authorities. Benefits from tax positions are measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences impact income tax expense in the period in which such determination is made. Interest and penalties, if any, related to accrued liabilities for potential tax assessments are included in income tax expense. |
Research And Development | Research and development: |
Advertising Costs | Advertising costs: 336,000 499,000 |
Share-Based Payments | Share-based payments: |
Fair Value Of Financial Instruments | Fair value of financial instruments: |
Basic And Diluted Earnings (Loss) Per Share | Basic and diluted earnings (loss) per share: assume the conversion, exercise or issuance of all potential common stock instruments unless their effect is anti-dilutive, thereby reducing the earnings or increasing the earnings per share. Common stock equivalents of 539,900 604,900 |
New Accounting Pronouncements | New Accounting Pronouncements: In April 2015, the FASB issued ASU 2015-03, "Simplifying the Presentation of Debt Issuance Costs." This standard, which will be effective July 1, 2016 for the Company, requires that debt issuance costs be presented as a direct deduction from the carrying amount of long-term debt on the balance sheet. The new guidance aligns the presentation of debt issuance costs with debt discounts and premiums. The standard is to be applied retrospectively to all prior periods presented. As of June 30, 2015, the Company had approximately $ 21,000 In July 2015, the FASB issued ASU 2015-11, "Inventory (Topic 330) Related to Simplifying the Measurement of Inventory," that applies to all inventory except that which is measured using last-in, first-out (LIFO) or the retail inventory method. Inventory measured using first-in, first-out (FIFO) or average cost is within the scope of the new guidance and should be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable cost of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO of the retail inventory method. The amendments are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The new guidance should be applied prospectively, and earlier application is permitted as of the beginning of an interim or annual reporting period. The Company is evaluating the impact of the standard on its financial statements. |
Reclassifications | Reclassifications: |
Nature Of Business And Summar19
Nature Of Business And Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Nature Of Business And Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Sales Made Under The Installment Method | Years Ended June 30, 2015 2014 Revenue recognized under installment sales $ 1,487,000 $ 1,100,000 Amortized cost of revenues recognized 168,000 149,000 |
Summary Of Unrecognized Installment Method Sales | June 30, 2015 2014 Estimated unrecognized sales, net of discounts $ 2,053,000 $ 1,908,000 Unamortized costs of revenues included in prepaid and other current assets and other assets 315,000 305,000 |
Schedule Of Warranty Liability | Years Ended June 30, 2015 2014 Beginning warranty reserve $ 700,000 $ 680,000 Accrual for products sold 139,000 196,000 Expenditures and costs incurred for warranty claims (179,000 ) (176,000 ) Ending warranty reserve $ 660,000 $ 700,000 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Inventories [Abstract] | |
Schedule Of Components Of Inventory | June 30, 2015 2014 Parts inventory $ 1,527,000 $ 1,491,000 Work in process 245,000 264,000 Finished goods 440,000 510,000 Less: Reserve for obsolescence (140,000 ) (30,000 ) Total $ 2,072,000 $ 2,235,000 |
Property And Equipment (Tables)
Property And Equipment (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Property And Equipment [Abstract] | |
Schedule Of Property And Equipment | Estimated Useful June 30, Lives (Years) 2015 2014 Building and building improvements 15 39 $ 2,236,000 $ 2,236,000 Land N/A 200,000 200,000 Land improvements 15 162,000 162,000 Equipment 3 7 2,596,000 2,476,000 Demonstration and rental equipment 3 1,070,000 1,213,000 6,264,000 6,287,000 Less: Accumulated depreciation (2,628,000 ) (2,351,000 ) Net property and equipment $ 3,636,000 $ 3,936,000 |
Finite-Life Intangible Assets (
Finite-Life Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Finite-Life Intangible Assets [Abstract] | |
Schedule Of Finite-Life Intangible Assets | Years Ended June 30, 2015 2014 Balance, beginning $ 1,039,000 $ 1,186,000 Additions 116,000 45,000 Abandonments (32,000 ) (63,000 ) Amortization expense (123,000 ) (129,000 ) Balance, ending $ 1,000,000 $ 1,039,000 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Financing Arrangements [Abstract] | |
Schedule Of Long-Term Debt | June 30 2015 2014 Mortgage note payable with bank, due in monthly installments of $ 8,632 5.0 December 2018 $ 1,241,000 $ 1,280,000 Capital lease obligation, due in monthly installments of $ 648 6.99 November 2016 10,000 17,000 Total 1,251,000 1,297,000 Less: Current portion 49,000 46,000 Long-term debt $ 1,202,000 $ 1,251,000 |
Schedule Of Approximate Future Maturities Of Long-Term Debt Including Capital Lease Obligations | Year ending June 30: 2016 $ 49,000 2017 46,000 2018 46,000 2019 1,110,000 Total $ 1,251,000 |
Schedule Of Capital Leased Assets | June 30 2015 2014 Fixtures and office equipment $ 33,000 $ 33,000 Less: Accumulated depreciation (12,000 ) (9,000 ) Total $ 21,000 $ 24,000 |
Schedule Of Approximate Future Minimum Payments Under Capital Leases | Year ending June 30: 2016 $ 8,000 2017 3,000 Total 11,000 Less: Amount representing interest (1,000 ) Present value of future minimum lease payments (included in long term debt above) $ 10,000 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Share-Based Payments [Abstract] | |
Schedule Of Valuation Assumptions To Estimate Fair Value Of Options Granted | Years Ended June 30, 2015 2014 Risk-free interest rate 2.5 % 2.5 % Expected term (years) 10 10 Expected volatility 57.0 % 57.1 % |
Schedule Of Employee Option Activity | Number of Weighted- Weighted- Weighted- Options outstanding at June 30, 2013 365,800 $ 1.97 $ 3.27 5.98 Granted 25,000 0.88 1.31 - Canceled or forfeited (20,000 ) 1.66 3.87 - Options outstanding at June 30, 2014 370,800 1.91 3.11 5.32 Granted 80,000 0.95 1.40 - Options outstanding at June 30, 2015 450,800 1.74 2.80 5.15 Options exercisable at June 30, 2015 389,134 1.87 3.03 4.56 |
Schedule Of Restricted Stock Activity | Restricted Stock Weighted-Average Outstanding at June 30, 2014 - - Granted 19,605 $2.55 Vested (19,605 ) $2.55 Outstanding at June 30, 2015 - |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Income Taxes [Abstract] | |
Schedule Of Components Of The Provision For Income Taxes | Years Ended June 30, 2015 2014 Current $ 132,000 $ 15,000 Deferred — 454,000 Total $ 132,000 $ 469,000 |
Schedule Of Effective Income Tax Reconciliation | Years Ended June 30, 2015 2014 Tax expense (benefit) at statutory federal rate $ 416,000 $ (279,000 ) State income tax expense (benefit), net of federal tax effect 46,000 (30,000 ) Change in valuation allowance on deferred tax assets (419,000 ) 727,000 Other permanent items 89,000 51,000 Income tax expense $ 132,000 $ 469,000 |
Schedule Of Balance Sheet Allocation Of Net Deferred Tax Assets | June 30, 2015 2014 Deferred tax assets (liabilities): Revenue recognition and accounts receivable $ 179,000 $ 224,000 Accrued liabilities 281,000 289,000 Property and equipment (549,000 ) (434,000 ) Finite-life intangible assets (18,000 ) (56,000 ) Stock options 306,000 317,000 Tax credits and net operating loss carryforwards 53,000 368,000 Other 56,000 19,000 Valuation allowance on deferred taxes (308,000 ) (727,000 ) Net deferred tax assets $ — $ — |
Commitments And Contingencies26
Commitments And Contingencies And Subsequent Events (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Commitments And Contingencies And Subsequent Events [Abstract] | |
Schedule Of Future Minimum Rental Payments For Operating Leases | Year ending June 30: 2016 $ 174,000 2017 93,000 2018 29,000 Total $ 296,000 |
Nature Of Business And Summar27
Nature Of Business And Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | ||
Sales | $ 19,408,385 | $ 15,487,875 |
Shipping and handling charges included in cost of goods sold | 295,000 | 290,000 |
Accounts receivable, allowance for doubtful accounts | 45,000 | 45,000 |
Advertising, marketing and trade show costs | $ 336,000 | $ 499,000 |
Common stock equivalents excluded from calculation of diluted earnings per share | 539,900 | 604,900 |
Unamortized debt issuance costs recorded in other non-current assets | $ 21,000 | |
International [Member] | ||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | ||
Sales | $ 854,000 | $ 801,000 |
Warranty term | 3 years | |
United States [Member] | ||
Nature Of Business And Summary Of Significant Accounting Policies [Line Items] | ||
Warranty term | 3 years |
Nature Of Business And Summar28
Nature Of Business And Summary Of Significant Accounting Policies (Summary Of Sales Made Under The Installment Method) (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Nature Of Business And Summary Of Significant Accounting Policies [Abstract] | ||
Revenue recognized under installment sales | $ 1,487,000 | $ 1,100,000 |
Amortized cost of revenues recognized | $ 168,000 | $ 149,000 |
Nature Of Business And Summar29
Nature Of Business And Summary Of Significant Accounting Policies (Summary Of Unrecognized Installment Method Sales) (Details) - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 |
Nature Of Business And Summary Of Significant Accounting Policies [Abstract] | ||
Estimated unrecognized sales, net of discounts | $ 2,053,000 | $ 1,908,000 |
Unamortized costs of revenues included in prepaid and other current assets and other assets | $ 315,000 | $ 305,000 |
Nature Of Business And Summar30
Nature Of Business And Summary Of Significant Accounting Policies (Schedule Of Warranty Liability) (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Nature Of Business And Summary Of Significant Accounting Policies [Abstract] | ||
Beginning warranty reserve | $ 700,000 | $ 680,000 |
Accrual for products sold | 139,000 | 196,000 |
Expenditures and costs incurred for warranty claims | (179,000) | (176,000) |
Ending warranty reserve | $ 660,000 | $ 700,000 |
Inventories (Details)
Inventories (Details) - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 |
Inventories [Abstract] | ||
Parts inventory | $ 1,527,000 | $ 1,491,000 |
Work in process | 245,000 | 264,000 |
Finished goods | 440,000 | 510,000 |
Less: Reserve for obsolescence | (140,000) | (30,000) |
Total | $ 2,072,108 | $ 2,235,496 |
Property And Equipment (Narrati
Property And Equipment (Narrative) (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Property And Equipment [Abstract] | ||
Net value of property and equipment disposed | $ 268,000 | $ 76,000 |
Impairment charges associated with tooling no longer used | $ 118,000 | $ 0 |
Property And Equipment (Schedul
Property And Equipment (Schedule Of Property And Equipment) (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 6,264,000 | $ 6,287,000 |
Less: Accumulated depreciation | (2,628,000) | (2,351,000) |
Net property and equipment | 3,635,516 | 3,935,802 |
Building And Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,236,000 | 2,236,000 |
Building And Building Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 15 years | |
Building And Building Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 39 years | |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 200,000 | 200,000 |
Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 162,000 | 162,000 |
Estimated useful life | 15 years | |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,596,000 | 2,476,000 |
Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 7 years | |
Demonstration And Rental Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,070,000 | $ 1,213,000 |
Estimated useful life | 3 years |
Finite-Life Intangible Assets34
Finite-Life Intangible Assets (Narrative) (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Net value of certain domestic and foreign patents that were abandoned | $ 32,000 | $ 63,000 |
Accumulated amortization | 698,000 | $ 576,000 |
Expected annual future amortization expense | $ 121,000 | |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life | 15 years | |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life | 12 years |
Finite-Life Intangible Assets35
Finite-Life Intangible Assets (Schedule Of Finite-Life Intangible Assets) (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Finite-Life Intangible Assets [Abstract] | ||
Balance, beginning | $ 1,039,413 | $ 1,186,000 |
Additions | 116,000 | 45,000 |
Abandonments | (32,000) | (63,000) |
Amortization expense | (122,911) | (128,205) |
Balance, ending | $ 999,842 | $ 1,039,413 |
Financing Arrangements (Narrati
Financing Arrangements (Narrative) (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Line of Credit Facility [Line Items] | ||
Capital leases, depreciation expense | $ 3,000 | $ 3,000 |
Venture Bank [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 2,500,000 | |
Outstanding principal balance | $ 0 | |
Amount added to prime rate for interest rate | 1.00% | |
Interest rate, floor | 4.50% | |
Effective interest rate including prime rate | 4.50% | |
Borrowing restriction, revolving line of credit | $ 2,500,000 | |
Borrowing restriction, percent of eligible accounts receivable | 57.00% | |
Amount eligible for borrowing, revolving line of credit | $ 2,500,000 | |
Credit facility expiration date | Dec. 18, 2015 | |
Interest rate | 4.50% | |
Term loan | $ 1,241,000 | $ 1,280,000 |
Term loan, interest rate | 5.00% | |
Monthly payments of principal and interest | $ 8,600 | |
Final payment of principal and interest | $ 1,095,000 | |
Term loan maturity date | Dec. 18, 2018 | |
Minimum tangible net worth to be maintained | $ 10,125,000 |
Financing Arrangements (Schedul
Financing Arrangements (Schedule Of Long-Term Debt) (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Debt Instrument [Line Items] | ||
Total | $ 1,251,000 | $ 1,297,000 |
Less: Current portion | 48,749 | 46,375 |
Long-term debt | 1,202,446 | 1,251,192 |
Mortgage Note [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, carrying amount | 1,241,000 | 1,280,000 |
Monthly installment | $ 8,632 | $ 8,632 |
Interest rate | 5.00% | 5.00% |
Maturity date | Dec. 1, 2018 | |
Capital Lease Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, carrying amount | $ 10,000 | $ 17,000 |
Monthly installment | $ 648 | |
Interest rate | 6.99% | |
Maturity date | Nov. 1, 2016 |
Financing Arrangements (Sched38
Financing Arrangements (Schedule Of Approximate Future Maturities Of Long-Term Debt Including Capital Lease Obligations) (Details) - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 |
Financing Arrangements [Abstract] | ||
2,016 | $ 49,000 | |
2,017 | 46,000 | |
2,018 | 46,000 | |
2,019 | 1,110,000 | |
Total | $ 1,251,000 | $ 1,297,000 |
Financing Arrangements (Sched39
Financing Arrangements (Schedule Of Capital Leased Assets) (Details) - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 |
Financing Arrangements [Abstract] | ||
Fixtures and office equipment | $ 33,000 | $ 33,000 |
Less: Accumulated depreciation | (12,000) | (9,000) |
Total | $ 21,000 | $ 24,000 |
Financing Arrangements (Sched40
Financing Arrangements (Schedule Of Approximate Future Minimum Payments Under Capital Leases) (Details) | Jun. 30, 2015USD ($) |
Financing Arrangements [Abstract] | |
2,016 | $ 8,000 |
2,017 | 3,000 |
Total | 11,000 |
Less: Amount representing interest | (1,000) |
Present value of future minimum lease payments (included in long term debt above) | $ 10,000 |
Common Stock (Details)
Common Stock (Details) - $ / shares | Jun. 30, 2015 | Jun. 30, 2014 |
Common Stock [Line Items] | ||
Common stock, shares authorized | 13,000,000 | 13,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Capital Stock [Member] | ||
Common Stock [Line Items] | ||
Common stock, shares authorized | 15,000,000 | |
Authorized Shares, Common Stock [Member] | ||
Common Stock [Line Items] | ||
Common stock, shares authorized | 13,000,000 | |
Common stock, par value | $ 0.01 | |
Authorized Shares, Undesignated Stock [Member] | ||
Common Stock [Line Items] | ||
Common stock, shares authorized | 2,000,000 |
Share-Based Payments (Narrative
Share-Based Payments (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2009 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted | 80,000 | 25,000 | |
Number of options exercised | 0 | 0 | |
Employee Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 5 years | ||
Options available for grant | 630,395 | ||
Options issued | 0 | ||
Share-based compensation expense | $ 110,000 | $ 82,000 | |
Unrecognized compensation expense | $ 32,000 | ||
Unrecognized compensation expense, period for recognition | 1 year 4 months 24 days | ||
IPO [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Additional shares available for purchase | 190,000 | ||
Exercise price | $ 4.80 | ||
Options expiration date | 2015-08 | ||
Convertible Debt With Warrants Attached [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Exercise price | $ 3 | $ 3 | |
Warrants outstanding and exercisable | 44,000 | ||
Warrants exercised | 0 | 0 | |
Warrants expiration date | 2015-09 | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 6 months | ||
2012 Stock Incentive Plan [Member] | Employee Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted | 450,800 | ||
Minimum [Member] | Employee Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award expiration period | 4 years | ||
Maximum [Member] | Employee Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award expiration period | 10 years | ||
Shares available for issuance | 650,000 |
Share-Based Payments (Schedule
Share-Based Payments (Schedule Of Valuation Assumptions To Estimate Fair Value Of Options Granted) (Details) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Share-Based Payments [Abstract] | ||
Risk-free interest rate | 2.50% | 2.50% |
Expected term (years) | 10 years | 10 years |
Expected volatility | 57.00% | 57.10% |
Share-Based Payments (Schedul44
Share-Based Payments (Schedule Of Employee Option Activity) (Details) - $ / shares | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Share-Based Payments [Abstract] | |||
Options outstanding, Number of Shares, Beginning Of Year | 370,800 | 365,800 | |
Granted, Number of Shares | 80,000 | 25,000 | |
Canceled or forfeited, Number of Shares | (20,000) | ||
Options outstanding, Number of Shares, End Of Year | 450,800 | 370,800 | 365,800 |
Options exercisable at June 30, 2015, Number of Shares | 389,134 | ||
Options outstanding, Weighted Average Grant Date Fair Value, Beginning Of Year | $ 1.91 | $ 1.97 | |
Granted, Weighted Average Grant Date Fair Value | 0.95 | 0.88 | |
Canceled or forfeited, Weighted Average Grant Date Fair Value | 1.66 | ||
Options outstanding, Weighted Average Grant Date Fair Value, End Of Year | 1.74 | 1.91 | $ 1.97 |
Options exercisable at June 30, 2015, Weighted Average Grant Date Fair Value | 1.87 | ||
Options outstanding, Weighted-Average Exercise Price, Beginning Of Year | 3.11 | 3.27 | |
Granted, Weighted-Average Exercise Price | 1.40 | 1.31 | |
Canceled or forfeited, Weighted-Average Exercise Price | 3.87 | ||
Options outstanding, Weighted-Average Exercise Price, End Of Year | 2.80 | $ 3.11 | $ 3.27 |
Options exercisable at June 30, 2015, Weighted-Average Exercise Price | $ 3.03 | ||
Options outstanding, Weighted-Average Remaining Contractual Life | 5 years 1 month 24 days | 5 years 3 months 26 days | 5 years 11 months 23 days |
Options exercisable at June 30, 2015, Weighted-Average Remaining Contractual Life | 4 years 6 months 22 days |
Share-Based Payments (Schedul45
Share-Based Payments (Schedule Of Restricted Stock Activity) (Details) - 12 months ended Jun. 30, 2015 - Restricted Stock [Member] - $ / shares | Total |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock units Granted, Number of Units | 19,605 |
Stock units Vested, Number of Units | (19,605) |
Stock units Granted, Weighted-Average Grant Date Fair Value per Share | $ 2.55 |
Stock units Vested, Weighted-Average Grant Date Fair Value per Share | $ 2.55 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Income Taxes [Abstract] | ||
Effective tax rate | 10.80% | (57.20%) |
Income tax expense (benefit) | $ 132,000 | $ 469,000 |
Current tax expense (benefit) | 132,000 | 15,000 |
Discrete tax expense | 454,000 | |
Deferred Tax Assets, Valuation Allowance | 308,000 | 727,000 |
Unrecognized tax benefits | 38,000 | 40,000 |
Lapse of the statute of limitations | $ 2,000 | $ 22,000 |
Income Taxes (Schedule Of Compo
Income Taxes (Schedule Of Components Of The Provision For Income Taxes) (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Income Taxes [Abstract] | ||
Current | $ 132,000 | $ 15,000 |
Deferred | 454,000 | |
Total income tax expense | $ 132,000 | $ 469,000 |
Income Taxes (Schedule Of Effec
Income Taxes (Schedule Of Effective Income Tax Reconciliation) (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Income Taxes [Abstract] | ||
Tax expense (benefit) at statutory federal rate | $ 416,000 | $ (279,000) |
State income tax expense (benefit), net of federal tax benefit | 46,000 | (30,000) |
Change in valuation allowance on deferred tax assets | (419,000) | 727,000 |
Other permanent items | 89,000 | 51,000 |
Total income tax expense | $ 132,000 | $ 469,000 |
Income Taxes (Significant Compo
Income Taxes (Significant Components Of Deferred Income Taxes) (Details) - USD ($) | Jun. 30, 2015 | Jun. 30, 2014 |
Income Taxes [Abstract] | ||
Revenue recognition and accounts receivable | $ 179,000 | $ 224,000 |
Accrued liabilities | 281,000 | 289,000 |
Property and equipment | (549,000) | (434,000) |
Finite-life intangible assets | (18,000) | (56,000) |
Stock options | 306,000 | 317,000 |
Tax credits and net operating loss carryforwards | 53,000 | 368,000 |
Other | 56,000 | 19,000 |
Valuation allowance on deferred taxes | $ (308,000) | $ (727,000) |
Net deferred tax assets |
Commitments And Contingencies50
Commitments And Contingencies And Subsequent Events (Narrative) (Details) | 12 Months Ended | |
Jun. 30, 2015USD ($)item | Jun. 30, 2014USD ($) | |
Number of operating leases | item | 2 | |
Operating leases, rent expense | $ 225,000 | $ 269,000 |
Litigation reimbursement | $ 34,000 | 211,000 |
Employee benefit plan, minimum age requirement | 21 years | |
Employee benefit plan, requisite service hours | 1000 hours | |
Employee benefit plan, employer contribution | $ 165,000 | $ 154,000 |
Period of base salary that is provided upon termination without cause | 1 year | |
Maximum period affecting benefits after change in control | 6 months | |
Minimum [Member] | ||
Term of operating lease for vehicles | 24 months | |
Escalating payments per month | $ 3,700 | |
Lease expiration | Jul. 1, 2016 | |
Maximum [Member] | ||
Term of operating lease for vehicles | 48 months | |
Escalating payments per month | $ 5,200 | |
Lease expiration | Jun. 1, 2017 |
Commitments And Contingencies51
Commitments And Contingencies And Subsequent Events (Schedule Of Future Minimum Rental Payments For Operating Leases) (Details) | Jun. 30, 2015USD ($) |
Commitments And Contingencies And Subsequent Events [Abstract] | |
2,016 | $ 174,000 |
2,017 | 93,000 |
2,018 | 29,000 |
Total | $ 296,000 |
Related Parties (Details)
Related Parties (Details) | 12 Months Ended | |
Jun. 30, 2015USD ($)item | Jun. 30, 2014USD ($) | |
Related Party Transaction [Line Items] | ||
Payments to related party parts supplier | $ | $ 101,000 | $ 237,000 |
Member Of Electromed's Board Of Directors [Member] | ||
Related Party Transaction [Line Items] | ||
Number of related parties | 1 |