Electromed (ELMD) 10-Q 9 Feb 16 2016 Q2 Quarterly report Financial data

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 Company’s 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 Company’s 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 Company’s 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 Company’s 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 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

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