Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Dec. 31, 2015 | Feb. 04, 2016 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Electromed, Inc. | |
Entity Central Index Key | 1,488,917 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2015 | |
Amendment Flag | false | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 8,187,112 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,016 |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) | Dec. 31, 2015 | Jun. 30, 2015 |
Current Assets | ||
Cash | $ 4,528,580 | $ 3,598,240 |
Accounts receivable (net of allowances for doubtful accounts of $45,000) | 6,903,378 | 6,518,816 |
Inventories | 2,393,622 | 2,072,108 |
Prepaid expenses and other current assets | 341,507 | 397,833 |
Total current assets | 14,167,087 | 12,586,997 |
Property and equipment, net | 3,460,979 | 3,635,516 |
Finite-life intangible assets, net | 948,512 | 999,842 |
Other assets | 185,375 | 182,699 |
Deferred income taxes | 288,000 | |
Total assets | 19,049,953 | 17,405,054 |
Current Liabilities | ||
Current maturities of long-term debt | 48,774 | 48,749 |
Accounts payable | 620,922 | 538,518 |
Accrued compensation | 836,322 | 700,370 |
Income tax payable | 77,124 | 122,657 |
Warranty reserve | 640,000 | 660,000 |
Other accrued liabilities | 207,287 | 208,983 |
Total current liabilities | 2,430,429 | 2,279,277 |
Long-term debt, less current maturities | 1,178,375 | 1,202,446 |
Total liabilities | $ 3,608,804 | $ 3,481,723 |
Commitments and Contingencies | ||
Equity | ||
Common stock, $0.01 par value; authorized: 13,000,000 shares; 8,187,112 and 8,133,857 issued and outstanding at December 31, 2015 and June 30, 2015, respectively | $ 81,871 | $ 81,339 |
Additional paid-in capital | 13,435,952 | 13,327,320 |
Retained earnings | 1,923,326 | 514,672 |
Total shareholders' equity | 15,441,149 | 13,923,331 |
Total liabilities and shareholders' equity | $ 19,049,953 | $ 17,405,054 |
Condensed Balance Sheets (Unau3
Condensed Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Dec. 31, 2015 | Jun. 30, 2015 |
Statement of Financial Position [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 | 8,187,112 | 8,133,857 |
Common stock, shares outstanding | 8,187,112 | 8,133,857 |
Condensed Statements Of Operati
Condensed Statements Of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | ||||
Net revenues | $ 6,262,106 | $ 4,881,723 | $ 11,263,295 | $ 9,652,262 |
Cost of revenues | 1,363,509 | 1,478,290 | 2,505,268 | 2,954,087 |
Gross profit | 4,898,597 | 3,403,433 | 8,758,027 | 6,698,175 |
Operating expenses | ||||
Selling, general and administrative | 3,591,934 | 2,872,402 | 6,824,653 | 5,693,897 |
Research and development | 57,090 | 83,643 | 98,634 | 158,909 |
Total operating expenses | 3,649,024 | 2,956,045 | 6,923,287 | 5,852,806 |
Operating income | 1,249,573 | 447,388 | 1,834,740 | 845,369 |
Interest expense, net of interest income of $2,924, $461 $3,548 and $1,673 respectively | 17,880 | 24,677 | 38,086 | 45,129 |
Net income before income taxes | 1,231,693 | $ 422,711 | 1,796,654 | $ 800,240 |
Income tax expense | (164,000) | (388,000) | ||
Net income | $ 1,067,693 | $ 422,711 | $ 1,408,654 | $ 800,240 |
Income per share: | ||||
Basic | $ .13 | $ 0.05 | $ .17 | $ 0.10 |
Diluted | $ .13 | $ 0.05 | $ .17 | $ 0.10 |
Weighted-average common shares outstanding: | ||||
Basic | 8,133,857 | 8,114,252 | 8,133,857 | 8,114,252 |
Diluted | 8,195,389 | 8,130,245 | 8,185,196 | 8,119,575 |
Condensed Statements Of Operat5
Condensed Statements Of Operations (Unaudited) (Parenthetical) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | ||||
Interest income | $ 2,924 | $ 461 | $ 3,548 | $ 1,673 |
Condensed Statements Of Cash Fl
Condensed Statements Of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows From Operating Activities | ||
Net income | $ 1,408,654 | $ 800,240 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 307,778 | 308,525 |
Amortization of finite-life intangible assets | 61,272 | 61,654 |
Amortization of debt issuance costs | 9,327 | 9,883 |
Share-based compensation expense | 109,164 | $ 38,511 |
Deferred taxes | (288,000) | |
Loss on disposal of property and equipment and intangibles assets | 24,965 | $ 139,732 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (384,562) | (141,593) |
Inventories | (290,582) | 1,004 |
Prepaid expenses and other assets | 57,843 | 32,161 |
Accounts payable and accrued liabilities | 151,127 | 73,961 |
Net cash provided by operating activities | 1,166,986 | 1,324,078 |
Cash Flows From Investing Activities | ||
Expenditures for property and equipment | (181,290) | (285,760) |
Expenditures for finite-life intangible assets | (17,790) | (51,073) |
Net cash used in investing activities | (199,080) | (336,833) |
Cash Flows From Financing Activities | ||
Principal payments on long-term debt including capital lease obligations | (24,046) | (22,789) |
Payment of deferred financing fees | (13,520) | (14,797) |
Net cash used in financing activities | (37,566) | (37,586) |
Net increase in cash | 930,340 | 949,659 |
Cash | ||
Beginning of period | 3,598,240 | 1,502,702 |
End of period | $ 4,528,580 | $ 2,452,361 |
Interim Financial Reporting
Interim Financial Reporting | 6 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Interim Financial Reporting | Note 1. Interim Financial Reporting Basis of presentation: The accompanying unaudited condensed financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles for interim financial statements and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission. In the opinion of management, the accompanying unaudited condensed financial statements reflect all adjustments consisting of normal recurring adjustments necessary for a fair presentation of the Company’s financial position and results of operations as required by Regulation S-X. Interim results of operations are not necessarily indicative of the results that may be achieved for the full year. The financial statements and related notes do not include all information and footnotes required by U.S. generally accepted accounting principles for annual reports. This interim report should be read in conjunction with the financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2015 (“fiscal 2015”). A summary of the Company’s significant accounting policies follows: Use of estimates: Net income per common share: New accounting pronouncements: In April 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” This standard, which will become 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 December 31, 2015, the Company had approximately $25,000 of unamortized debt issuance costs recorded in other non-current assets on the balance sheet. In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330) Related to Simplifying the Measurement of Inventory,” which 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. In November 2015, the FASB issued ASU No. 2015-17, “ Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes Reclassifications: |
Inventories
Inventories | 6 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 2. Inventories The components of inventory were approximately as follows: December 31, 2015 June 30, 2015 Parts inventory $ 1,661,000 $ 1,527,000 Work in process 163,000 245,000 Finished goods 725,000 440,000 Less: Reserve for obsolescence (155,000 ) (140,000 ) Total $ 2,394,000 $ 2,072,000 |
Finite-Life Intangible Assets
Finite-Life Intangible Assets | 6 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-Life Intangible Assets | Note 3. 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 and 12 years, respectively. During the six months ended December 31, 2015 and the year ended June 30, 2015, the Company abandoned certain domestic and foreign patents with net values of approximately $8,000 and $32,000, respectively, which was included as an expense in selling, general and administrative expense on the statements of operations. The patents covered technology that management considered outdated and was no longer in use. Accumulated amortization was $759,000 and $698,000 at December 31, 2015 and June 30, 2015, respectively. The activity and balances of finite-life intangible assets were approximately as follows: December 31, 2015 June 30, 2015 Balance, beginning $ 1,000,000 $ 1,039,000 Additions 18,000 116,000 Abandonments (8,000 ) (32,000 ) Amortization expense (61,000 ) (123,000 ) Balance, ending $ 949,000 $ 1,000,000 |
Warranty Liability
Warranty Liability | 6 Months Ended |
Dec. 31, 2015 | |
Product Warranties Disclosures [Abstract] | |
Warranty Liability | Note 4. Warranty Liability The Company provides a lifetime warranty on its products to the prescribed patient for sales within the United States and a three-year warranty for all institutional sales and sales to individuals outside the United States. The Company estimates the costs that may be incurred under its warranty and records a liability in the amount of such costs at the time the product is shipped. Factors that affect the Company’s warranty liability include the number of units shipped, historical and anticipated rates of warranty claims, the product's useful life and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary. Changes in the Company’s warranty liability were approximately as follows: Six Months Ended December 31, 2015 Fiscal Year Ended June 30, 2015 Beginning warranty reserve $ 660,000 $ 700,000 Accrual for products sold 53,000 139,000 Expenditures and costs incurred for warranty claims (73,000 ) (179,000 ) Ending warranty reserve $ 640,000 $ 660,000 |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 5. Income Taxes On a quarterly basis, the Company estimates its effective tax rate for the full fiscal year and records a quarterly income tax provision based on the anticipated rate. As the year progresses, the Company refines its estimate based on the facts and circumstances by each tax jurisdiction. Income tax expense was estimated at approximately $388,000 and the effective tax rate was 21.6% for the six months ended December 31, 2015. Estimated income tax expense during the six months ended December 31, 2015 includes a current tax expense of $682,000 and a discrete tax benefit of $294,000 due primarily to the Company’s release of the full valuation allowance against all of its net U.S. federal and state deferred tax assets. For the six months ended December 31, 2014, the Company recorded zero tax expense. As income was earned the Company’s net operating loss carryforwards were applied to reduce taxable income to zero. Accordingly, the application of the net operating losses to reduce taxable income reduced the Company’s gross deferred tax assets. This reduction of the Company’s gross deferred tax assets caused a corresponding decrease in the respective valuation allowance. For the three and six months ended December 31, 2014, the Company recorded an income tax expense of zero and the decrease in its deferred tax assets and the corresponding reduction in its deferred tax asset valuation allowance was approximately $176,000 and $331,000, respectively. During the fiscal year ended June 30, 2014, the Company recorded a full valuation allowance against all of its net U.S. federal and state deferred tax assets. 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. Future sources of taxable income considered in determining the amount of recorded valuation allowance include: · 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. On a quarterly basis, the Company evaluates all positive and negative evidence, as described above, in determining if the valuation allowance is fairly stated. At December 31, 2015, the Company determined that, based on the profitability it has achieved, historical cumulative profits and estimates of future income, there is sufficient positive evidence to conclude that the likelihood of realization of deferred tax assets outweighs the negative evidence. The full valuation allowance was released, which resulted in the recognition of $288,000 in net deferred tax assets and a decrease in income tax expense for the three- and six-month periods. |
Financing Arrangements
Financing Arrangements | 6 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Note 6. Financing Arrangements The Company has a credit facility that provides for a revolving line of credit and a term loan. Effective December 18, 2015, the Company renewed its $2,500,000 revolving line of credit. There was no outstanding principal balance on the line of credit as of December 31, 2015 or June 30, 2015. Interest on borrowings under the line of credit, if any, would accrue at the prime rate (3.50% at December 31, 2015) and is payable monthly. The amount eligible for borrowing on the line of credit is limited to the lesser of $2,500,000 or 57.00% of eligible accounts receivable and the line of credit expires on December 18, 2016, if not renewed. At December 31, 2015, the maximum $2,500,000 was eligible for borrowing. The line of credit is secured by a security interest in substantially all of the tangible and intangible assets of the Company. In connection with the line of credit, the Company also has a term loan, which had an outstanding principal balance of approximately $1,221,000 at December 31, 2015. The term loan bears interest at 5.00%, with monthly payments of principal and interest of approximately $8,600 and a final payment of principal and interest of approximately $1,090,000 due on the maturity date of December 18, 2018. Payment obligations under the term loan are secured by a mortgage on the Companys real property. The documents governing the line of credit and term loan contain certain financial and nonfinancial covenants that include a minimum tangible net worth covenant of not less than $10,125,000 and restrictions on the Companys ability to incur certain additional indebtedness or pay dividends. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Note 7. Stock-Based Compensation The Company recorded $109,164, and $38,511 of compensation expense related to current and past grants of stock options and restricted stock for the six months ended December 31, 2015 and 2014, respectively. This expense is included in selling, general and administrative expense. As of December 31, 2015, approximately $213,000 of total unrecognized compensation expense related to non-vested equity awards is expected to be recognized over a weighted average period of approximately 1.2 years. Stock Options The Company issued 143,500 stock options pursuant to its 2014 Stock Compensation Plan during the six-month period ended December 31, 2015. The following is a summary of employee stock option activity during the six months ended December 31, 2015: Number of shares Weighted average exercise price Outstanding at June 30, 2015 450,800 $2.80 Granted 143,500 $1.80 Exercised Cancelled or Forfeited (4,500 ) $1.80 Outstanding at December 31, 2015 589,800 $2.56 The intrinsic value of an option is the amount by which the fair value of the underlying stock exceeds its exercise price. At December 31, 2015, the weighted average remaining contractual term for all outstanding stock options was 5.79 years and their aggregate intrinsic value was approximately $76,000. During the six months ended December 31, 2015, 190,000 options issued in conjunction with the Companys 2010 initial public offering and 44,100 warrants issued with convertible debt, prior to 2010, expired. The only remaining options outstanding at December 31, 2015 are the 589,800 employee stock options, of which approximately 389,000 are exercisable and have an aggregate intrinsic value of approximately $32,000. Restricted Stock The Companys 2014 Stock Compensation Plan permits its Compensation Committee to grant other stock-based awards. The Company makes restricted stock grants to key employees and non-employee directors that vest over six months to three years. During the six-month period ended December 31, 2015, the Company issued restricted stock awards to employees totaling 30,000 shares of common stock, with a vesting term of one to three years and a fair value of $1.80 per share and to directors totaling 23,255 shares of common stock, with a vesting term of six months and a fair value of $2.15 per share. Restricted stock transactions during the six-month period ended December 31, 2015 are summarized as follows: Number of shares Weighted average grant date fair value Unvested shares at June 30, 2015 Granted 53,255 $1.95 Vested Forfeited Unvested at December 31, 2015 53,255 $1.95 |
Commitments And Contingencies
Commitments And Contingencies | 6 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Note 8. Commitments and Contingencies The Company is occasionally involved in claims and disputes arising in the ordinary course of business. The Company insures its business risks where possible to mitigate the financial impact of individual claims, and establishes reserves for an estimate of any probable cost of settlement or other disposition. |
Interim Financial Reporting (Po
Interim Financial Reporting (Policies) | 6 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | Use of estimates: |
Net Income Per Common Share | Net income per common share: |
New Accounting Pronouncements | New accounting pronouncements: In April 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-03, “Simplifying the Presentation of Debt Issuance Costs.” This standard, which will become 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 December 31, 2015, the Company had approximately $25,000 of unamortized debt issuance costs recorded in other non-current assets on the balance sheet. In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330) Related to Simplifying the Measurement of Inventory,” which 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. In November 2015, the FASB issued ASU No. 2015-17, “ Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes |
Reclassifications | Reclassifications: |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule Of Components Of Inventory | The components of inventory were approximately as follows: December 31, 2015 June 30, 2015 Parts inventory $ 1,661,000 $ 1,527,000 Work in process 163,000 245,000 Finished goods 725,000 440,000 Less: Reserve for obsolescence (155,000 ) (140,000 ) Total $ 2,394,000 $ 2,072,000 |
Finite-Life Intangible Assets (
Finite-Life Intangible Assets (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Finite-Life Intangible Assets | The activity and balances of finite-life intangible assets were approximately as follows: December 31, 2015 June 30, 2015 Balance, beginning $ 1,000,000 $ 1,039,000 Additions 18,000 116,000 Abandonments (8,000 ) (32,000 ) Amortization expense (61,000 ) (123,000 ) Balance, ending $ 949,000 $ 1,000,000 |
Warranty Liability (Tables)
Warranty Liability (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Product Warranties Disclosures [Abstract] | |
Schedule Of Warranty Liability | Changes in the Companys warranty liability were approximately as follows: Six Months Ended December 31, 2015 Fiscal Year Ended June 30, 2015 Beginning warranty reserve $ 660,000 $ 700,000 Accrual for products sold 53,000 139,000 Expenditures and costs incurred for warranty claims (73,000 ) (179,000 ) Ending warranty reserve $ 640,000 $ 660,000 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule Of Stock Compensation Plan Activity | The following is a summary of employee stock option activity during the six months ended December 31, 2015: Number of shares Weighted average exercise price Outstanding at June 30, 2015 450,800 $2.80 Granted 143,500 $1.80 Exercised Cancelled or Forfeited (4,500 ) $1.80 Outstanding at December 31, 2015 589,800 $2.56 |
Schedule Of Restricted Stock Awards Activity | Restricted stock transactions during the six-month period ended December 31, 2015 are summarized as follows: Number of shares Weighted average grant date fair value Unvested shares at June 30, 2015 Granted 53,255 $1.95 Vested Forfeited Unvested at December 31, 2015 53,255 $1.95 |
Interim Financial Reporting (De
Interim Financial Reporting (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Sales | $ 6,262,106 | $ 4,881,723 | $ 11,263,295 | $ 9,652,262 |
Common stock equivalents excluded from calculation of diluted earnings per share | 305,800 | 539,900 | 305,800 | 559,900 |
Unamortized debt issuance costs recorded in other non-current assets | $ 25,000 | $ 25,000 | ||
International [Member] | ||||
Sales | $ 352,000 | $ 439,000 |
Inventories (Details)
Inventories (Details) - USD ($) | Dec. 31, 2015 | Jun. 30, 2015 |
Inventory Disclosure [Abstract] | ||
Parts inventory | $ 1,661,000 | $ 1,527,000 |
Work in process | 163,000 | 245,000 |
Finished goods | 725,000 | 440,000 |
Less: Reserve for obsolescence | (155,000) | (140,000) |
Total | $ 2,393,622 | $ 2,072,108 |
Finite-Life Intangible Assets22
Finite-Life Intangible Assets (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | $ 759,000 | $ 698,000 |
Abandonment [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Abandonment expense of patents | $ 8,000 | $ 32,000 |
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 Assets23
Finite-Life Intangible Assets (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Balance, beginning | $ 999,842 | $ 1,039,000 | $ 1,039,000 |
Additions | 18,000 | 116,000 | |
Abandonments | (8,000) | (32,000) | |
Amortization expense | (61,272) | $ (61,654) | (123,000) |
Balance, ending | $ 948,512 | $ 999,842 |
Warranty Liability (Details Nar
Warranty Liability (Details Narrative) | 6 Months Ended |
Dec. 31, 2015 | |
Institutional Sales and Sales Outside United States [Member] | |
Warranty term | 3 years |
Warranty Liability (Details)
Warranty Liability (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Jun. 30, 2015 | |
Product Warranties Disclosures [Abstract] | ||
Beginning warranty reserve | $ 660,000 | $ 700,000 |
Accrual for products sold | 53,000 | 139,000 |
Expenditures and costs incurred for warranty claims | (73,000) | (179,000) |
Ending warranty reserve | $ 640,000 | $ 660,000 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) ) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 21.60% | |||
Income tax expense (benefit) | $ 164,000 | $ 388,000 | ||
Current tax expense (benefit) | 682,000 | |||
Change in valuation allowance on deferred tax assets | $ (176,000) | $ (294,000) | $ (331,000) |
Financing Arrangements (Details
Financing Arrangements (Details Narrative) | 6 Months Ended |
Dec. 31, 2015USD ($) | |
Term Loan [Member] | |
Line of Credit Facility [Line Items] | |
Principal loan amount | $ 1,221,000 |
Term loan, interest rate | 5.00% |
Monthly payments of principal and interest | $ 8,600 |
Final payment of principal and interest | $ 1,090,000 |
Term loan maturity date | Dec. 18, 2018 |
Minimum tangible net worth to be maintained | $ 10,125,000 |
Venture Bank [Member] | Revolving Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $ 2,500,000 |
Credit facility effective date | Dec. 18, 2015 |
Credit facility expiration date | Dec. 18, 2016 |
Effective interest rate including prime rate | 3.50% |
Borrowing capacity of eligible accounts receivable | $ 2,500,000 |
Borrowing capacity of eligible accounts receivable (percent) | 57.00% |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Narrative) - USD ($) | 6 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 109,164 | $ 38,511 |
Unrecognized compensation expense | $ 213,000 | |
Unrecognized compensation expense, period for recognition | 1 year 2 months 12 days | |
Options expired | 190,000 | |
Warrants expired | 44,100 | |
Employee Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average remaining contractual term | 5 years 9 months 14 days | |
Aggregate intrinsic value | $ 76,000 | |
Options exercisable | 389,000 | |
Options exercisable, intrinsic value | $ 32,000 | |
Restricted Stock Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Issuance of shares for restricted stock awards | 30,000 | |
Fair value of restricted stock awards issued | $ 1.80 | |
Restricted Stock Awards [Member] | Directors [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 6 months | |
Issuance of shares for restricted stock awards | 23,255 | |
Fair value of restricted stock awards issued | $ 2.15 | |
Restricted Stock Awards [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 1 year | |
Restricted Stock Awards [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 3 years |
Stock-Based Compensation (Det29
Stock-Based Compensation (Details) - Employee Stock Options [Member] | 6 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Number of Shares | |
Options outstanding, beginning of year | shares | 450,800 |
Granted | shares | 143,500 |
Cancelled or Forfeited | shares | (4,500) |
Options outstanding, end of year | shares | 589,800 |
Weighted Average Exercise Price | |
Options outstanding, beginning of year | $ / shares | $ 2.80 |
Granted | $ / shares | 1.80 |
Cancelled or Forfeited | $ / shares | 1.80 |
Options outstanding, end of year | $ / shares | $ 2.56 |
Stock-Based Compensation (Det30
Stock-Based Compensation (Details 1) - Restricted Stock Awards [Member] | 6 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Number of Shares | |
Granted | shares | 53,255 |
Unvested shares, end of year | shares | 53,255 |
Weighted Average Exercise Price | |
Granted | $ / shares | $ 1.95 |
Unvested shares, end of year | $ / shares | $ 1.95 |