Electromed (ELMD) 10-Q 12 May 20 2020 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Mar. 31, 2020	May 08, 2020
Document And Entity Information [Abstract]
Entity Registrant Name	Electromed, Inc.
Entity Central Index Key	0001488917
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Amendment Flag	false
Entity File Number	001-34839
Entity Incorporation, State Code	MN
Entity Reporting Status Current	Yes
Entity Interactive Data Current	Yes
Current Fiscal Year End Date	--06-30
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		8,483,785
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2020
Entity Emerging Growth Company	false
Entity Smaller Reporting Company	true
Entity Shell Company	false

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2020	Jun. 30, 2019
Current Assets
Cash	$ 9,933,309	$ 7,807,928
Accounts receivable (net of allowances for doubtful accounts of $45,000)	13,290,402	12,760,042
Contract assets	1,146,842	995,847
Inventories, net	2,646,971	2,622,000
Prepaid expenses and other current assets	360,956	353,214
Income tax receivable	409,064
Total current assets	27,787,544	24,539,031
Property and equipment, net	3,878,347	3,604,744
Finite-life intangible assets, net	604,905	581,413
Other assets	100,421	45,044
Deferred income taxes	602,000	629,000
Total assets	32,973,217	29,399,232
Current Liabilities
Current maturities of other long-term liabilities	76,866	30,320
Accounts payable	874,133	586,575
Accrued compensation	1,444,480	1,404,662
Income tax payable		288,511
Warranty reserve	780,000	810,000
Other accrued liabilities	446,573	530,453
Total current liabilities	3,622,052	3,650,521
Other long-term liabilities	24,324	14,737
Total liabilities	3,646,376	3,665,258
Commitments and Contingencies
Shareholders' Equity
Common stock, $0.01 par value; authorized: 13,000,000 shares; 8,483,785 and 8,408,351 issued and outstanding at March 31, 2020 and June 30, 2019, respectively	84,838	84,084
Additional paid-in capital	16,867,053	16,127,826
Retained earnings	12,374,950	9,522,064
Total shareholders' equity	29,326,841	25,733,974
Total liabilities and shareholders' equity	$ 32,973,217	$ 29,399,232

Condensed Balance Sheets (Una_2

Condensed Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Mar. 31, 2020	Jun. 30, 2019
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 45,000	$ 45,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized	13,000,000	13,000,000
Common stock, issued	8,483,785	8,408,351
Common stock, outstanding	8,483,785	8,408,351

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
Net revenues	$ 8,743,897	$ 7,407,779	$ 25,593,337	$ 22,696,149
Cost of revenues	2,150,347	1,833,478	5,981,931	5,516,517
Gross profit	6,593,550	5,574,301	19,611,406	17,179,632
Operating expenses
Selling, general and administrative	5,288,485	4,938,992	15,148,344	15,361,590
Research and development	391,962	170,757	634,376	476,785
Total operating expenses	5,680,447	5,109,749	15,782,720	15,838,375
Operating income	913,103	464,552	3,828,686	1,341,257
Interest income, net	34,171	27,374	111,200	57,348
Net income before income taxes	947,274	491,926	3,939,886	1,398,605
Income tax expense	294,000	139,000	1,087,000	508,000
Net income	$ 653,274	$ 352,926	$ 2,852,886	$ 890,605
Income per share:
Basic (in dollars per share)	$ 0.08	$ 0.04	$ 0.34	$ 0.11
Diluted (in dollars per share)	$ 0.07	$ 0.04	$ 0.33	$ 0.1
Weighted-average common shares outstanding:
Basic (in shares)	8,403,154	8,325,346	8,390,916	8,294,568
Diluted (in shares)	8,880,794	8,612,448	8,759,493	8,637,414

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash Flows From Operating Activities
Net income	$ 2,852,886	$ 890,605
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	469,784	527,472
Amortization of finite-life intangible assets	90,863	89,728
Amortization of debt issuance costs		1,958
Share-based compensation expense	676,558	729,470
Deferred income taxes Changes in operating assets and liabilities:	27,000	27,000
Loss on disposal of property and equipment Changes in operating assets and liabilities:	1,294	1,710
Changes in operating assets and liabilities:
Accounts receivable	(530,360)	(464,400)
Contract assets	(150,995)	(67,463)
Inventories	(13,852)	(205,524)
Prepaid expenses and other assets	50,329	490,147
Income tax receivable	(409,064)	(239,989)
Income tax payable	(288,511)	(397,390)
Accounts payable and accrued liabilities	136,361	(211,371)
Net cash provided by operating activities	2,912,293	1,171,953
Cash Flows From Investing Activities
Expenditures for property and equipment	(752,875)	(197,445)
Expenditures for finite-life intangible assets	(97,460)	(43,309)
Net cash used in investing activities	(850,335)	(240,754)
Cash Flows From Financing Activities
Principal payments on long-term debt including capital lease obligations		(1,103,001)
Issuance of common stock upon exercise of options	63,423	251,849
Net cash provided by (used in) financing activities	63,423	(851,152)
Net increase in cash	2,125,381	80,047
Cash
Beginning of period	7,807,928	7,455,844
End of period	$ 9,933,309	$ 7,535,891

Condensed Statements of Shareho

Condensed Statements of Shareholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Mmeber]	Total
Balance beginning at Jun. 30, 2018	$ 82,887	$ 14,953,103	$ 7,541,734	$ 22,577,724
Balance beginning (in shares) at Jun. 30, 2018	8,288,659
Net income			157,161	157,161
Issuance of restricted stock	$ 300	(300)
Issuance of restricted stock (in shares)	30,000
Issuance of common stock upon exercise of options	$ 112	33,198		33,310
Issuance of common stock upon exercise of options (in shares)	11,167
Share-based compensation expense		257,493		257,493
Balance ending at Sep. 30, 2018	$ 83,299	15,243,494	7,698,895	23,025,688
Balance ending (in shares) at Sep. 30, 2018	8,329,826
Balance beginning at Jun. 30, 2018	$ 82,887	14,953,103	7,541,734	22,577,724
Balance beginning (in shares) at Jun. 30, 2018	8,288,659
Net income				890,605
Balance ending at Mar. 31, 2019	$ 84,084	15,933,225	8,432,338	24,449,647
Balance ending (in shares) at Mar. 31, 2019	8,408,351
Balance beginning at Sep. 30, 2018	$ 83,299	15,243,494	7,698,895	23,025,688
Balance beginning (in shares) at Sep. 30, 2018	8,329,826
Net income			380,517	380,517
Issuance of restricted stock	$ 100	(100)
Issuance of restricted stock (in shares)	10,000
Issuance of common stock upon exercise of options	$ 443	155,068		155,511
Issuance of common stock upon exercise of options (in shares)	44,358
Share-based compensation expense		243,252		243,252
Balance ending at Dec. 31, 2018	$ 83,842	15,641,714	8,079,412	23,804,968
Balance ending (in shares) at Dec. 31, 2018	8,384,184
Net income			352,926	352,926
Issuance of common stock upon exercise of options	$ 242	62,786		63,028
Issuance of common stock upon exercise of options (in shares)	24,167
Share-based compensation expense		228,725		228,725
Balance ending at Mar. 31, 2019	$ 84,084	15,933,225	8,432,338	24,449,647
Balance ending (in shares) at Mar. 31, 2019	8,408,351
Balance beginning at Jun. 30, 2019	$ 84,084	16,127,826	9,522,064	$ 25,733,974
Balance beginning (in shares) at Jun. 30, 2019	8,408,351			8,408,351
Net income			1,014,556	$ 1,014,556
Issuance of restricted stock	$ 325	(325)
Issuance of restricted stock (in shares)	32,500
Issuance of common stock upon exercise of options	$ 50	12,990		13,040
Issuance of common stock upon exercise of options (in shares)	5,000
Share-based compensation expense		209,954		209,954
Balance ending at Sep. 30, 2019	$ 84,459	16,350,445	10,536,620	26,971,524
Balance ending (in shares) at Sep. 30, 2019	8,445,851
Balance beginning at Jun. 30, 2019	$ 84,084	16,127,826	9,522,064	$ 25,733,974
Balance beginning (in shares) at Jun. 30, 2019	8,408,351			8,408,351
Net income				$ 2,852,886
Balance ending at Mar. 31, 2020	$ 84,838	16,867,053	12,374,950	$ 29,326,841
Balance ending (in shares) at Mar. 31, 2020	8,483,785			8,483,785
Balance beginning at Sep. 30, 2019	$ 84,459	16,350,445	10,536,620	$ 26,971,524
Balance beginning (in shares) at Sep. 30, 2019	8,445,851
Net income			1,185,056	1,185,056
Issuance of restricted stock	$ 150	(150)
Issuance of restricted stock (in shares)	15,000
Issuance of common stock upon exercise of options	$ 175	62,721		62,896
Issuance of common stock upon exercise of options (in shares)	17,597
Share-based compensation expense		234,304		234,304
Balance ending at Dec. 31, 2019	$ 84,784	16,647,320	11,721,676	28,453,780
Balance ending (in shares) at Dec. 31, 2019	8,478,448
Net income			653,274	653,274
Issuance of common stock upon exercise of options	$ 54	(12,567)		(12,513)
Issuance of common stock upon exercise of options (in shares)	5,337
Share-based compensation expense		232,300		232,300
Balance ending at Mar. 31, 2020	$ 84,838	$ 16,867,053	$ 12,374,950	$ 29,326,841
Balance ending (in shares) at Mar. 31, 2020	8,483,785			8,483,785

Interim Financial Reporting

Interim Financial Reporting	9 Months Ended
	Mar. 31, 2020
Accounting Policies [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 (“U.S. GAAP”) 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. GAAP 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, 2019 (“fiscal 2019”). Potential impacts of COVID-19 on the Company’s business: The impact of the COVID-19 pandemic on the Company’s business remains uncertain and its effects on its operational and financial performance will depend in large part on future developments, which cannot be reasonably estimated at this time. Such future developments include, but are not limited to, the duration, scope and severity of the COVID-19 pandemic in geographic areas the Company operates or in which its patients live, actions taken to contain or mitigate its impact, the impact on governmental healthcare programs and budgets, the development of treatments or vaccines, and the resumption of widespread economic activity. Due to the inherent uncertainty of the unprecedented and rapidly evolving situation, the Company is unable to predict with confidence the likely impact of the COVID-19 pandemic on its future operations. For a more detailed discussion see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part I, Item 2 of this Quarterly Report on Form 10-Q. A summary of the Company’s significant accounting policies follows: Use of estimates: Net income per common share: New accounting pronouncements: Impact on Previously Reported Results: The following table presents a recast of selected unaudited statement of operations line items after giving effect to the adoption of ASC 842: For the three months ended March 31, 2019 As Previously Effect Reported of Adoption As Adjusted Net revenues $ 7,407,779 $ - $ 7,407,779 Cost of revenues 1,833,478 - 1,833,478 Gross profit 5,574,301 - 5,574,301 Operating expenses Selling, general and administrative 4,941,773 (2,781 ) 4,938,992 Research and development 170,757 - 170,757 Total operating expenses 5,112,530 (2,781 ) 5,109,749 Operating income 461,771 2,781 464,552 Interest income, net 27,374 - 27,374 Net income before income taxes 489,145 2,781 491,926 Income tax expense 139,000 - 139,000 Net income $ 350,145 $ 2,781 $ 352,926 Income per share: Basic $ 0.05 $ 0.00 $ 0.05 Diluted $ 0.04 $ 0.00 $ 0.04 For the nine months ended March 31, 2019 As Previously Effect Reported of Adoption As Adjusted Net revenues $ 22,696,149 $ - $ 22,696,149 Cost of revenues 5,516,517 - 5,516,517 Gross profit 17,179,632 - 17,179,632 Operating expenses Selling, general and administrative 15,369,921 (8,331 ) 15,361,590 Research and development 476,785 - 476,785 Total operating expenses 15,846,706 (8,331 ) 15,838,375 Operating income 1,332,926 8,331 1,341,257 Interest income, net 57,348 - 57,348 Net income before income taxes 1,390,274 8,331 1,398,605 Income tax expense 508,000 - 508,000 Net income $ 882,274 $ 8,331 $ 890,605 Income per share: Basic $ 0.11 $ 0.00 $ 0.11 Diluted $ 0.10 $ 0.00 $ 0.10 The following table presents a recast of selected unaudited balance sheet line items after giving effect to the adoption of ASC 842: June 30, 2019 As Previously Effect Reported of Adoption As Adjusted Assets Other assets $ - $ 45,044 $ 45,044 Liabilities and Shareholder's Equity Current maturities of other long-term liabilities - 30,320 30,320 Other long-term liabilities - 14,737 14,737 Retained earnings 9,522,076 (12 ) 9,522,064 The following table presents a recast of selected unaudited statement of cash flow line items after giving effect to the adoption of ASC 842: For the nine months ended March 31, 2019 As Previously Effect Reported of Adoption As Adjusted Cash Flow from Operating Activities Net income $ 882,274 $ 8,331 $ 890,605 Changes in operating assets and liabilities: Prepaid expenses and other assets 350,881 139,266 490,147 Accounts payable and accrued liabilities (63,774 ) (147,597 ) (211,371 )

Revenues

Revenues	9 Months Ended
	Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
Revenues	Note 2. Revenues Revenue is measured based on consideration specified in the contract with a customer, adjusted for any applicable estimates of variable consideration and other factors affecting the transaction price, including non-cash consideration, consideration paid or payable to customers and significant financing components. Revenue from all customers is recognized when a performance obligation is satisfied by transferring control of a distinct good or service to a customer, as further described below under Performance obligations and transaction price Individual promised goods and services in a contract are considered a performance obligation and accounted for separately if the individual good or service is distinct (i.e., the customer can benefit from the good or service on its own or with other resources that are readily available to the customer and the good or service is separately identifiable from other promises in the arrangement). If an arrangement includes multiple performance obligations, the consideration is allocated between the performance obligations in proportion to their estimated standalone selling price, unless discounts or variable consideration is attributable to one or more but not all the performance obligations. Costs related to products delivered are recognized in the period incurred, unless criteria for capitalization of costs under FASB Accounting Standards Codification (“ASC”) 340-40, “Other Assets and Deferred Costs” (“ASC 340”), or other applicable guidance are met. The Company includes shipping and handling fees in net revenues. Shipping and handling costs associated with the shipment of the Company’s SmartVest® Airway Clearance System (“SmartVest System”) after control has transferred to a customer are accounted for as a fulfillment cost and are included in cost of revenues. The timing of revenue recognition, billings and cash collections results in accounts receivable on the condensed balance sheets as further described below under Accounts receivable Contract assets Disaggregation of revenues. For the three months ended March 31, For the nine months ended March 31, 2020 2019 2020 2019 Home Care $ 7,834,094 $ 6,851,910 $ 22,994,856 $ 20,905,230 Institutional 608,519 414,369 1,726,868 1,235,176 Home Care Distributor 164,564 - 415,933 - International 136,720 141,500 455,680 555,743 Total $ 8,743,897 $ 7,407,779 $ 25,593,337 $ 22,696,149 In the following table, home care revenue is disaggregated by payer type: For the three months ended March 31, For the nine months ended March 31, 2020 2019 2020 2019 Commercial $ 3,486,387 $ 2,807,493 $ 9,474,517 $ 9,641,929 Medicare 3,818,185 3,702,807 11,281,858 9,853,450 Medicaid 300,664 147,731 1,432,074 864,846 Other 228,858 193,879 806,407 545,005 Total $ 7,834,094 $ 6,851,910 $ 22,994,856 $ 20,905,230 Revenues in the Company’s home care, home care distributor and international markets are recognized at a point in time when control passes to the customer upon product shipment or delivery. Revenues in the Company’s institutional market include sales recognized at a point in time upon shipment or delivery as well as revenues recognized over time under operating leases. Performance obligations and transaction price. Home care market The Company makes available to its home care patients limited post-sale services that are not material in the context of the contracts, either individually or taken together, and therefore does not consider them to be performance obligations. The costs associated with the services are accrued and expensed when the related revenues are recognized. As such, transactions in the home care market consist of a single performance obligation, the SmartVest System. Home care patients generally will rely on third-party payers, including commercial payers and governmental payers such as Medicare, Medicaid and the U.S. Department of Veterans Affairs to cover and reimburse all or part of the cost of the SmartVest System. The third-party payers’ reimbursement programs fall into three types, distinguished by the differences in the timing of payments from the payer, consisting of either (i) outright sale, in which payment is received from the payer based on standard terms, (ii) capped installment sale, under which the SmartVest System is sold for a series of payments that are capped not to exceed a prescribed or negotiated amount over a period of time or (iii) installment sale, under which the SmartVest System is paid for over a period of several months as long as the patient continues to use the SmartVest System. Regardless of type of transaction, provided criteria for an enforceable contract are met, it is the Company’s long-standing business practice to regard all home care agreements as transferring control to the patient upon shipment or delivery, in spite of possible payment cancellation under government or commercial programs where the payer is controlling the payment over specified time periods. For home care sales that feature installment payments, the ultimate amount of consideration received from Medicare, Medicaid or commercial payers can be significantly less than expected if the contract is terminated due to changes in the patient’s status, including insurance coverage, hospitalization, death or otherwise becoming unable to use the SmartVest System. However, once delivered to a patient who needs the SmartVest System, the patient is under no obligation to return the SmartVest System should payments be terminated as a result of the described contingencies. As a result, the Company’s product sales qualify for point in time revenue recognition. Control transfers to the patient, and revenue is recognized, upon shipment of the SmartVest System. At this point, physical possession and the significant risks and rewards of ownership are transferred to the patient and either a current or future right to payment is triggered, as further discussed under Accounts receivable Contract assets The Company’s contractually stated transaction prices in the home care market are generally set by the terms of the contracts negotiated with insurance companies or by government programs. The transaction price for the Company’s products may be further impacted by variable consideration. ASC 606 requires the Company to adjust the transaction price at contract inception and throughout the contract duration for the estimated value of payments to be received from insurance payers based on historical experience and other available information, subject to the constraint on estimates of variable consideration. Transactions requiring estimates of variable consideration primarily include (i) capped installment payments, which are subject to the third-party payer’s termination due to changes in insurance coverage, death or the patient’s discontinued use of the SmartVest System, (ii) contracts under appeal and (iii) patient responsibility amounts for deductibles, coinsurance, copays and other similar payments. Although estimates may be made on a contract-by-contract basis, whenever possible, the Company uses all available information including historical collection patterns to estimate variable consideration for portfolios of contracts. The Company’s estimates of variable consideration consist of amounts it may receive from insurance providers in excess of its initial revenue estimate due to patients meeting deductibles or coinsurance during the payment duration, changes to a patient’s insurance status, changes in an insurance allowable, claims in appeals with Medicare and amounts received directly from patients for their allowable or coinsurance. The Company believes it has representative historical information to estimate the amount of variable consideration in relevant portfolios considering the significant experience it has with each portfolio and the similarity of patient accounts within a portfolio. The analysis includes steps to ensure that revenue recognized on a portfolio basis does not result in a material difference when compared with an individual contract approach. The Company also leverages its historical experience and all available relevant information for each portfolio of contracts to minimize the risk its estimates used to arrive at the transaction price will result in a significant reversal in the amount of cumulative revenue recognized when the uncertainty associated with the variable consideration is subsequently resolved. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. For example, for contracts in which the Company believes the criteria for reimbursement under government or commercial payer contracts have been met but for which coverage is unconfirmed or payments are under appeal, the Company has significant observable evidence of relatively consistent claims recovery experience over the prior three to five years. The Company believes the low volatility in historical claims approval rates for populations of patients whose demographics are similar to those of current patients provides reliable predictive value in arriving at estimates of variable consideration in such contracts. Similarly, historical payment trends for recovery of claims subject to payer installments and payments from patients have remained relatively consistent over the past five years. No significant changes in patient demographics or other relevant factors have occurred that would limit the predictive value of such payment trends in estimating variable consideration for current contracts. As a result, the Company believes its estimates of variable consideration are generally not subject to the risk of significant revenue reversal. For each type of variable consideration discussed above, there are a large number of contracts with similar characteristics with a wide range of possible transaction prices. For that reason, the Company uses the probability-weighted expected value method provided under ASC 606 to estimate variable consideration. The Company often receives payment from third-party payers for the SmartVest System sales over a period of time that may exceed one year. Despite these extended payment terms, no significant financing component is deemed to exist because the purpose of such terms is not to provide financing to the patient, the payer or the Company. Rather, the extended payment terms are mandated by the government or commercial insurance programs; the fundamental purpose of which is to avoid paying the full purchase price of equipment that may potentially be used by the patient for only a short period of time. Home Care Distributors. Institutional market. ● Outright sale – Under these transactions, the Company sells its products for a prescribed or negotiated price. Transfer of control of the product, and associated revenue recognition, occurs at the time of shipment and payment is made within normal credit terms, usually within 30 days. ● Rentals – Under these transactions, the customer obtains a right to use the product for a period of time in exchange for consideration as usage occurs. These transactions are treated as operating leases and revenue is recognized ratably over the applicable rental period. Lease revenue recognized during the nine months ended March 31, 2020 and 2019 was approximately $6,000 and $34,000, respectively. International market. Product Warranty. Accounts receivable. Contract assets. Incremental costs to obtain a contract. . Contract balances. March 31, 2020 June 30, 2019 Receivables, included in “Accounts receivable, net of allowance for $ 13,290,402 $ 12,760,042 doubtful accounts" Contract assets $ 1,146,842 $ 995,847 Significant changes in contract assets during the period are as follows: Nine Months Ended Fiscal Year Ended Increase (decrease) Increase (decrease) Contract assets, beginning $ 995,847 $ 776,338 Reclassification of contract assets to accounts receivable (1,413,671 ) (2,012,619 ) Contract assets recognized 1,557,371 2,169,835 Increase as a result of changes in the estimate of amounts to be realized from payers, excluding amounts transferred to receivables during the period 7,295 62,293 Contract assets, ending $ 1,146,842 $ 995,847

Inventories

Inventories	9 Months Ended
	Mar. 31, 2020
Inventory Disclosure [Abstract]
Inventories	Note 3. Inventories The components of inventory were approximately as follows: March 31, 2020 June 30, 2019 Parts inventory $ 2,042,000 $ 1,783,000 Work in process 239,000 444,000 Finished goods 459,000 521,000 Estimated inventory to be returned 187,000 184,000 Less: Reserve for obsolescence (280,000 ) (310,000 ) Total $ 2,647,000 $ 2,622,000

Finite-life Intangible Assets

Finite-life Intangible Assets	9 Months Ended
	Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [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 and 12 years, respectively. Accumulated amortization was $1,101,000 and $1,010,000 at March 31, 2020 and June 30, 2019, respectively. The activity and balances of finite-life intangible assets were approximately as follows: Nine Months Ended Fiscal Year Ended Balance, beginning $ 581,000 $ 649,000 Additions 115,000 58,000 Abandonments - (5,000 ) Amortization expense (91,000 ) (121,000 ) Balance, ending $ 605,000 $ 581,000

Warranty Liability

Warranty Liability	9 Months Ended
	Mar. 31, 2020
Product Warranties Disclosures [Abstract]
Warranty Liability	Note 5. Warranty Liability The Company provides a lifetime warranty on its products to the prescribed patient for sales within the U.S. and a three-year warranty for all institutional sales and sales to individuals outside the U.S. 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: Nine Months Ended Fiscal Year Ended Beginning warranty reserve $ 810,000 $ 760,000 Accrual for products sold 82,000 201,000 Expenditures and costs incurred for warranty claims (112,000 ) (151,000 ) Ending warranty reserve $ 780,000 $ 810,000

Income Taxes

Income Taxes	9 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Note 6. 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 $294,000 and $1,087,000, and the effective tax rate was 31.0% and 27.6%, for the three and nine months ended March 31, 2020, respectively. Estimated income tax expense for the three months ended March 31, 2020 included a $30,000 discrete tax expense as a result of higher federal and state taxes than what was originally estimated in the Company’s fiscal 2019 tax provision. The net impact of this discrete event increased the estimated effective tax rates by 3.2% during the three months ended March 31, 2020. Estimated income tax expense for the nine months ended March 31, 2020 included a $30,000 discrete tax expense as a result of higher federal and state taxes than what was originally estimated in the Company’s fiscal 2019 tax provision and a $13,000 discrete tax benefit related to the exercise of stock options. The net impact of these discrete events increased the estimated effective tax rates by 0.4% during the nine months ended March 31, 2020. Income tax expense was estimated at approximately $139,000 and $508,000, and the effective tax rate was 28.3% and 36.3%, for the three and nine months ended March 31, 2019, respectively. Estimated income tax expense for the nine months ended March 31, 2019 includes a discrete deferred tax expense of approximately $134,000 related to unexercised fully-vested stock options that expired and a discrete current tax benefit of approximately $16,000 related to the excess tax benefit of non-qualified stock options exercised during the period. The net impact of these discrete events increased the estimated effective tax rates by 8.5% during the nine months ended March 31, 2019.

Financing Arrangements

Financing Arrangements	9 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Financing Arrangements	Note 7. Financing Arrangements The Company has a credit facility that provides for a revolving line of credit and a term loan. Effective December 18, 2019, the Company renewed its $2,500,000 revolving line of credit. There was no outstanding principal balance on the line of credit as of March 31, 2020 or June 30, 2019. Interest on borrowings under the line of credit, if any, accrues at the prime rate (3.25% at March 31, 2020) less 1.00% 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, 2020, if not renewed. At March 31, 2020, the maximum $2,500,000 was eligible for borrowing. The line of credit is secured by a security interest in substantially all the tangible and intangible assets of the Company. The documents governing the line of credit 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	9 Months Ended
	Mar. 31, 2020
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	Note 8. Stock-Based Compensation In November 2017, the Company’s shareholders approved the 2017 Omnibus Incentive Plan (the “2017 Plan”), which superseded the 2014 Equity Incentive Plan (the “2014 Plan”). The 2017 Plan allows the Company’s Board of Directors (the “Board of Directors”) to grant stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based awards, as well as cash incentive awards to all employees, non-employee directors, and advisors or consultants of the Company. The vesting schedule and term for each award are determined by the Board of Directors upon each grant. The maximum number of shares of common stock available for issuance under the 2017 Plan is 900,000. There were 469,500 stock options granted under the 2014 Plan and prior plans outstanding as of March 31, 2020. There were 287,932 stock options and 77,498 shares of restricted stock issued under the 2017 Plan outstanding and 504,900 shares available for grant under the 2017 Plan as of March 31, 2020. The Company recorded approximately $677,000 and $729,000 of compensation expense related to current and past grants of stock options and restricted stock for the nine months ended March 31, 2020 and 2019, respectively. This expense is included in selling, general and administrative expense. As of March 31, 2020, approximately $730,000 of total unrecognized compensation expense related to non-vested equity awards was expected to be recognized over a weighted-average period of approximately 0.7 years. 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 historical volatility of its stock price. 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. The following assumptions were used to estimate the fair value of stock options granted: Nine Months Ended Fiscal Year Ended Risk-free interest rate 1.85 % 2.36% - 2.77 % Expected term (years) 6 6 Expected volatility 190.1 % 182.4% - 192.0 % Stock Options The Company issued 149,300 stock options pursuant to the 2017 Plan during the nine months ended March 31, 2020. Stock option transactions during the nine months ended March 31, 2020 are summarized as follows: Number of Shares Weighted Average Outstanding at June 30, 2019 683,000 $ 3.84 Granted 149,300 $ 5.29 Exercised (34,418 ) $ 3.87 Cancelled or Forfeited (40,450 ) $ 5.33 Outstanding at March 31, 2020 757,432 $ 4.05 The intrinsic value of an option is the amount by which the fair value of the underlying stock exceeds its exercise price. At March 31, 2020, the weighted average remaining contractual term for all outstanding stock options was 6.66 years and their aggregate intrinsic value was approximately $6,062,000. Outstanding at March 31, 2020 were 757,432 stock options issued to employees, of which 477,756 were exercisable and had an aggregate intrinsic value of approximately $4,202,000. Restricted Stock The 2017 Plan also permits the grant of other stock-based awards, including shares of restricted stock. Historically, the Company makes restricted stock grants to key employees and non-employee directors that vest over six months to three years. During the nine months ended March 31, 2020, the Company issued restricted stock awards to employees totaling 32,500 shares of common stock, with a vesting term of one to three years and a fair value of $5.29 per share, and to directors totaling 18,000 shares of common stock, with a vesting term of six months and a fair value of $9.74 per share. The restricted stock’s fair value per share represents the closing price of its common stock on the NYSE American on the date of the grant. Restricted stock transactions during the nine months ended March 31, 2020 are summarized as follows: Number of Shares Weighted Average Outstanding Shares of Restricted Stock Unvested at June 30, 2019 29,998 $ 5.46 Granted 50,500 6.88 Vested – – Forfeited (3,000 ) 9.74 Outstanding Shares of Restricted Stock Unvested at March 31, 2020 77,498 $ 6.22

Leases

Leases	9 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Leases	Note 9. Leases The Company has four leases for office and warehouse space that require monthly payments. These leases have escalating payments ranging from approximately $450 to $4,400 per month which expire through July 2022 and are recognized on a straight-line basis over the life of the lease. The Company has a lease for office equipment that requires payments of approximately $1,500 per month through December 2022. All leases are classified as operating leases which do not include renewal options. The Company currently does not have any short-term or variable lease costs. The Company applied the practical expedient to calculate the present value of the fixed payments without having to perform an allocation to lease and non-lease components. The Company has recognized right of use assets associated with its operating leases of approximately $100,000 and $45,000 as of March 31, 2020 and June 30, 2019, respectively, which is included in other assets on the Company’s condensed balance sheet. Operating lease liabilities were $101,000 and $45,000 as of March 31, 2020 and June 30, 2019, respectively, which are included in current maturities of long-term liabilities and other long-term liabilities on the Company’s condensed balance sheet. As of March 31, 2020, the Company has a weighted-average lease term of 0.8 years for its operating leases, which have a weighted-average discount rate of 4.0%. Operating lease payments of $55,000 are included in operating cash flows for the nine months ended March 31, 2020. Maturities of lease liabilities, which are included in current maturities of long-term liabilities and other long-term liabilities on the Company’s condensed balance sheet, are as follows: Fiscal years ending June 30: 2020 * $ 23,000 2021 73,000 2022 9,000 2023 1,000 Total lease payments 106,000 Less: Interest (5,000 ) Present value of lease liabilities $ 101,000 *

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 10. 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.

Subsequent Events

Subsequent Events	9 Months Ended
	Mar. 31, 2020
Subsequent Events [Abstract]
Subsequent Events	Note 11. Subsequent Events On April 10, 2020, the Company received a stimulus payment in the amount of $913,000 related to the Coronavirus Aid Relief, and Economic Security Act (“CARES Act”) Provider Relief Fund which may partially offset losses in revenue due to the impact of the COVID-19 pandemic. The Company’s ability to utilize the full amount received will depend on the guidelines and rules of the CARES Act such as the cost incurred to support healthcare-related expenses or lost revenue attributable to the COVID-19 pandemic in accordance with the guidelines and rules of the CARES Act.

Interim Financial Reporting (Po

Interim Financial Reporting (Policies)	9 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Use of estimates	Use of estimates:
Net income per common share	Net income per common share:
New Accounting Pronouncements	New accounting pronouncements: Impact on Previously Reported Results: The following table presents a recast of selected unaudited statement of operations line items after giving effect to the adoption of ASC 842: For the three months ended March 31, 2019 As Previously Effect Reported of Adoption As Adjusted Net revenues $ 7,407,779 $ - $ 7,407,779 Cost of revenues 1,833,478 - 1,833,478 Gross profit 5,574,301 - 5,574,301 Operating expenses Selling, general and administrative 4,941,773 (2,781 ) 4,938,992 Research and development 170,757 - 170,757 Total operating expenses 5,112,530 (2,781 ) 5,109,749 Operating income 461,771 2,781 464,552 Interest income, net 27,374 - 27,374 Net income before income taxes 489,145 2,781 491,926 Income tax expense 139,000 - 139,000 Net income $ 350,145 $ 2,781 $ 352,926 Income per share: Basic $ 0.05 $ 0.00 $ 0.05 Diluted $ 0.04 $ 0.00 $ 0.04 For the nine months ended March 31, 2019 As Previously Effect Reported of Adoption As Adjusted Net revenues $ 22,696,149 $ - $ 22,696,149 Cost of revenues 5,516,517 - 5,516,517 Gross profit 17,179,632 - 17,179,632 Operating expenses Selling, general and administrative 15,369,921 (8,331 ) 15,361,590 Research and development 476,785 - 476,785 Total operating expenses 15,846,706 (8,331 ) 15,838,375 Operating income 1,332,926 8,331 1,341,257 Interest income, net 57,348 - 57,348 Net income before income taxes 1,390,274 8,331 1,398,605 Income tax expense 508,000 - 508,000 Net income $ 882,274 $ 8,331 $ 890,605 Income per share: Basic $ 0.11 $ 0.00 $ 0.11 Diluted $ 0.10 $ 0.00 $ 0.10 The following table presents a recast of selected unaudited balance sheet line items after giving effect to the adoption of ASC 842: June 30, 2019 As Previously Effect Reported of Adoption As Adjusted Assets Other assets - 45,044.48 45,044 Liabilities and Shareholder's Equity Current maturities of other long-term liabilities - 30,320 30,320 Other long-term liabilities - 14,737 14,737 Retained earnings 9,522,076 (12 ) 9,522,064 The following table presents a recast of selected unaudited statement of cash flow line items after giving effect to the adoption of ASC 842: For the nine months ended March 31, 2019 As Previously Effect Reported of Adoption As Adjusted Cash Flow from Operating Activities Net income $ 882,274 $ 8,331 $ 890,605 Changes in operating assets and liabilities: Prepaid expenses and other assets 350,881 139,266 490,147 Accounts payable and accrued liabilities (63,774 ) (147,597 ) (211,371 )

Interim Financial Reporting (Ta

Interim Financial Reporting (Tables)	9 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Schedule of recast of selected financial information for adoption of ASC 842	The following table presents a recast of selected unaudited statement of operations line items after giving effect to the adoption of ASC 842: For the three months ended March 31, 2019 As Previously Effect Reported of Adoption As Adjusted Net revenues $ 7,407,779 $ - $ 7,407,779 Cost of revenues 1,833,478 - 1,833,478 Gross profit 5,574,301 - 5,574,301 Operating expenses Selling, general and administrative 4,941,773 (2,781 ) 4,938,992 Research and development 170,757 - 170,757 Total operating expenses 5,112,530 (2,781 ) 5,109,749 Operating income 461,771 2,781 464,552 Interest income, net 27,374 - 27,374 Net income before income taxes 489,145 2,781 491,926 Income tax expense 139,000 - 139,000 Net income $ 350,145 $ 2,781 $ 352,926 Income per share: Basic $ 0.05 $ 0.00 $ 0.05 Diluted $ 0.04 $ 0.00 $ 0.04 For the nine months ended March 31, 2019 As Previously Effect Reported of Adoption As Adjusted Net revenues $ 22,696,149 $ - $ 22,696,149 Cost of revenues 5,516,517 - 5,516,517 Gross profit 17,179,632 - 17,179,632 Operating expenses Selling, general and administrative 15,369,921 (8,331 ) 15,361,590 Research and development 476,785 - 476,785 Total operating expenses 15,846,706 (8,331 ) 15,838,375 Operating income 1,332,926 8,331 1,341,257 Interest income, net 57,348 - 57,348 Net income before income taxes 1,390,274 8,331 1,398,605 Income tax expense 508,000 - 508,000 Net income $ 882,274 $ 8,331 $ 890,605 Income per share: Basic $ 0.11 $ 0.00 $ 0.11 Diluted $ 0.10 $ 0.00 $ 0.10 The following table presents a recast of selected unaudited balance sheet line items after giving effect to the adoption of ASC 842: June 30, 2019 As Previously Effect Reported of Adoption As Adjusted Assets Other assets $ - $ 45,044 $ 45,044 Liabilities and Shareholder's Equity Current maturities of other long-term liabilities - 30,320 30,320 Other long-term liabilities - 14,737 14,737 Retained earnings 9,522,076 (12 ) 9,522,064 The following table presents a recast of selected unaudited statement of cash flow line items after giving effect to the adoption of ASC 842: For the nine months ended March 31, 2019 As Previously Effect Reported of Adoption As Adjusted Cash Flow from Operating Activities Net income $ 882,274 $ 8,331 $ 890,605 Changes in operating assets and liabilities: Prepaid expenses and other assets 350,881 139,266 490,147 Accounts payable and accrued liabilities (63,774 ) (147,597 ) (211,371 )

Revenues (Tables)

Revenues (Tables)	9 Months Ended
	Mar. 31, 2020
Revenue from Contract with Customer [Abstract]
Schedule of disaggregated revenue	For the three months ended March 31, For the nine months ended March 31, 2020 2019 2020 2019 Home Care $ 7,834,094 $ 6,851,910 $ 22,994,856 $ 20,905,230 Institutional 608,519 414,369 1,726,868 1,235,176 Home Care Distributor 164,564 - 415,933 - International 136,720 141,500 455,680 555,743 Total $ 8,743,897 $ 7,407,779 $ 25,593,337 $ 22,696,149 In the following table, home care revenue is disaggregated by payer type: For the three months ended March 31, For the nine months ended March 31, 2020 2019 2020 2019 Commercial $ 3,486,387 $ 2,807,493 $ 9,474,517 $ 9,641,929 Medicare 3,818,185 3,702,807 11,281,858 9,853,450 Medicaid 300,664 147,731 1,432,074 864,846 Other 228,858 193,879 806,407 545,005 Total $ 7,834,094 $ 6,851,910 $ 22,994,856 $ 20,905,230
Schedule of contract assets	March 31, 2020 June 30, 2019 Receivables, included in “Accounts receivable, net of allowance for $ 13,290,402 $ 12,760,042 doubtful accounts" Contract assets $ 1,146,842 $ 995,847 Significant changes in contract assets during the period are as follows: Nine Months Ended Fiscal Year Ended Increase (decrease) Increase (decrease) Contract assets, beginning $ 995,847 $ 776,338 Reclassification of contract assets to accounts receivable (1,413,671 ) (2,012,619 ) Contract assets recognized 1,557,371 2,169,835 Increase as a result of changes in the estimate of amounts to be realized from payers, excluding amounts transferred to receivables during the period 7,295 62,293 Contract assets, ending $ 1,146,842 $ 995,847

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Mar. 31, 2020
Inventory Disclosure [Abstract]
Schedule of components of inventories	The components of inventory were approximately as follows: March 31, 2020 June 30, 2019 Parts inventory $ 2,042,000 $ 1,783,000 Work in process 239,000 444,000 Finished goods 459,000 521,000 Estimated inventory to be returned 187,000 184,000 Less: Reserve for obsolescence (280,000 ) (310,000 ) Total $ 2,647,000 $ 2,622,000

Finite-life Intangible Assets (

Finite-life Intangible Assets (Tables)	9 Months Ended
	Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of activity and balances of finite-life intangible assets	The activity and balances of finite-life intangible assets were approximately as follows: Nine Months Ended Fiscal Year Ended Balance, beginning $ 581,000 $ 649,000 Additions 115,000 58,000 Abandonments - (5,000 ) Amortization expense (91,000 ) (121,000 ) Balance, ending $ 605,000 $ 581,000

Warranty Liability (Tables)

Warranty Liability (Tables)	9 Months Ended
	Mar. 31, 2020
Product Warranties Disclosures [Abstract]
Schedule of changes in warranty liability	Changes in the Company’s warranty liability were approximately as follows: Nine Months Ended Fiscal Year Ended Beginning warranty reserve $ 810,000 $ 760,000 Accrual for products sold 82,000 201,000 Expenditures and costs incurred for warranty claims (112,000 ) (151,000

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Mar. 31, 2020
Share-based Payment Arrangement [Abstract]
Schedule of assumptions used to estimate fair value of options granted	The following assumptions were used to estimate the fair value of stock options granted: Nine Months Ended Fiscal Year Ended Risk-free interest rate 1.85 % 2.36% - 2.77 % Expected term (years) 6 6 Expected volatility 190.1 % 182.4% - 192.0 %
Schedule of stock option transactions	The Company issued 149,300 stock options pursuant to the 2017 Plan during the nine months ended March 31, 2020. Stock option transactions during the nine months ended March 31, 2020 are summarized as follows: Number of Shares Weighted Average Outstanding at June 30, 2019 683,000 $ 3.84 Granted 149,300 $ 5.29 Exercised (34,418 ) $ 3.87 Cancelled or Forfeited (40,450 ) $ 5.33 Outstanding at March 31, 2020 757,432 $ 4.05
Schedule of restricted stock transactions	Restricted stock transactions during the nine months ended March 31, 2020 are summarized as follows: Number of Shares Weighted Average Outstanding Shares of Restricted Stock Unvested at June 30, 2019 29,998 $ 5.46 Granted 50,500 6.88 Vested – – Forfeited (3,000 ) 9.74 Outstanding Shares of Restricted Stock Unvested at March 31, 2020 77,498 $ 6.22

Leases (Tables)

Leases (Tables)	9 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Schedule of the maturity of lease liabilities	Maturities of lease liabilities, which are included in current maturities of long-term liabilities and other long-term liabilities on the Company’s condensed balance sheet, are as follows: Fiscal years ending June 30: 2020 * $ 23,000 2021 73,000 2022 9,000 2023 1,000 Total lease payments 106,000 Less: Interest (5,000 ) Present value of lease liabilities $ 101,000

Interim Financial Reporting (De

Interim Financial Reporting (Details) - USD ($)	3 Months Ended						9 Months Ended
	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Mar. 31, 2020	Mar. 31, 2019	Jun. 30, 2019
Net revenues	$ 8,743,897			$ 7,407,779			$ 25,593,337	$ 22,696,149
Cost of revenues	2,150,347			1,833,478			5,981,931	5,516,517
Gross profit	6,593,550			5,574,301			19,611,406	17,179,632
Operating expenses
Selling, general and administrative	5,288,485			4,938,992			15,148,344	15,361,590
Research and development	391,962			170,757			634,376	476,785
Total operating expenses	5,680,447			5,109,749			15,782,720	15,838,375
Operating income	913,103			464,552			3,828,686	1,341,257
Interest income, net	34,171			27,374			111,200	57,348
Net income before income taxes	947,274			491,926			3,939,886	1,398,605
Income tax expense	294,000			139,000			1,087,000	508,000
Net income	$ 653,274	$ 1,185,056	$ 1,014,556	$ 352,926	$ 380,517	$ 157,161	$ 2,852,886	$ 890,605
Income per share:
Basic (in dollars per share)	$ 0.08			$ 0.04			$ 0.34	$ 0.11
Diluted (in dollars per share)	$ 0.07			$ 0.04			$ 0.33	$ 0.1
Cash Flow from Operating Activities
Net income	$ 653,274	$ 1,185,056	$ 1,014,556	$ 352,926	$ 380,517	$ 157,161	$ 2,852,886	$ 890,605
Changes in operating assets and liabilities:
Prepaid expenses and other assets							50,329	490,147
Accounts payable and accrued liabilities							136,361	(211,371)
Assets
Other assets	100,421						100,421		$ 45,044
Liabilities and Shareholder's Equity
Current maturities of other long-term liabilities	76,866						76,866		30,320
Other long-term liabilities	24,324						24,324		14,737
Retained earnings	$ 12,374,950						$ 12,374,950		9,522,064
Effect of Adoption [Member]
Operating expenses
Selling, general and administrative				(2,781)				(8,331)
Total operating expenses				(2,781)				(8,331)
Operating income				2,781				8,331
Net income before income taxes				2,781				8,331
Net income				$ 2,781				$ 8,331
Income per share:
Basic (in dollars per share)				$ 0				$ 0
Diluted (in dollars per share)				$ 0				$ 0
Cash Flow from Operating Activities
Net income				$ 2,781				$ 8,331
Changes in operating assets and liabilities:
Prepaid expenses and other assets								139,266
Accounts payable and accrued liabilities								(147,597)
Assets
Other assets									45,044
Liabilities and Shareholder's Equity
Current maturities of other long-term liabilities									30,320
Other long-term liabilities									14,737
Retained earnings									(12)
As Previously Reported[Member]
Net revenues				7,407,779				22,696,149
Cost of revenues				1,833,478				5,516,517
Gross profit				5,574,301				17,179,632
Operating expenses
Selling, general and administrative				4,941,773				15,369,921
Research and development				170,757				476,785
Total operating expenses				5,112,530				15,846,706
Operating income				461,771				1,332,926
Interest income, net				27,374				57,348
Net income before income taxes				489,145				1,390,274
Income tax expense				139,000				508,000
Net income				$ 350,145				$ 882,274
Income per share:
Basic (in dollars per share)				$ 0.05				$ 0.11
Diluted (in dollars per share)				$ 0.04				$ 0.10
Cash Flow from Operating Activities
Net income				$ 350,145				$ 882,274
Changes in operating assets and liabilities:
Prepaid expenses and other assets								350,881
Accounts payable and accrued liabilities								$ (63,774)
Liabilities and Shareholder's Equity
Retained earnings									$ 9,522,076

Interim Financial Reporting (_2

Interim Financial Reporting (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Common stock equivalents excluded from calculation of diluted earnings per share	0	323,750	134,100	323,750
Sales	$ 8,743,897	$ 7,407,779	$ 25,593,337	$ 22,696,149
International [Member]
Sales			$ 455,000	$ 556,000

Revenues (Details)

Revenues (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Revenue	$ 8,743,897	$ 7,407,779	$ 25,593,337	$ 22,696,149
Home Care [Member]
Revenue	7,834,094	6,851,910	22,994,856	20,905,230
Home Care [Member]
Revenue	7,834,094	6,851,910	22,994,856	20,905,230
Home Care [Member] | Commercial [Member]
Revenue	3,486,387	2,807,493	9,474,517	9,641,929
Home Care [Member] | Medicare [Member]
Revenue	3,818,185	3,702,807	11,281,858	9,853,450
Home Care [Member] | Medicaid [Member]
Revenue	300,664	147,731	1,432,074	864,846
Home Care [Member] | Other [Member]
Revenue	228,858	193,879	806,407	545,005
Institutional [Member]
Revenue	608,519	414,369	1,726,868	1,235,176
Home Care Distributor [Member]
Revenue	164,564		415,933
International [Member]
Revenue	$ 136,720	$ 141,500	$ 455,680	$ 555,743

Revenues (Details 1)

Revenues (Details 1) - USD ($)	9 Months Ended	12 Months Ended
	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2020	Jun. 30, 2019
Revenue from Contract with Customer [Abstract]
Receivables, included in "Accounts receivable, net of allowance for doubtful accounts"			$ 13,290,402	$ 12,760,042
Contract assets	$ 1,146,842	$ 995,847	$ 1,146,842	$ 995,847
Contract assets, beginning	995,847	776,338
Reclassification of contract assets to accounts receivable	(1,413,671)	(2,012,619)
Contract assets recognized	1,557,371	2,169,835
Increase as a result of changes in the estimate of amounts to be realized from payers, excluding amounts transferred to receivables during the period	7,295	62,293
Contract assets, ending	$ 1,146,842	$ 995,847

Revenues (Details Narrative)

Revenues (Details Narrative) - USD ($)	9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
Operating lease revenue	$ 6,000	$ 34,000

Inventories (Details)

Inventories (Details) - USD ($)	Mar. 31, 2020	Jun. 30, 2019
Inventory Disclosure [Abstract]
Parts inventory	$ 2,042,000	$ 1,783,000
Work in process	239,000	444,000
Finished goods	459,000	521,000
Estimated Inventory to be returned	187,000	184,000
Less: Reserve for obsolescence	(280,000)	(310,000)
Total	$ 2,646,971	$ 2,622,000

Finite-life Intangible Assets_2

Finite-life Intangible Assets (Details) - USD ($)	9 Months Ended	12 Months Ended
	Mar. 31, 2020	Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Balance, beginning	$ 581,413	$ 649,000
Additions	115,000	58,000
Abandonments		(5,000)
Amortization expense	(91,000)	(121,000)
Balance, ending	$ 604,905	$ 581,413

Finite-life Intangible Assets_3

Finite-life Intangible Assets (Details Narrative) - USD ($)	9 Months Ended
	Mar. 31, 2020	Jun. 30, 2019
Finite-Lived Intangible Assets [Line Items]
Accumulated amortization	$ 1,101,000	$ 1,010,000
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

Warranty Liability (Details)

Warranty Liability (Details) - USD ($)	9 Months Ended	12 Months Ended
	Mar. 31, 2020	Jun. 30, 2019
Warranty reserve:
Beginning warranty reserve	$ 810,000	$ 760,000
Accrual for products sold	82,000	201,000
Expenditures and costs incurred for warranty claims	(112,000)	(151,000)
Ending warranty reserve	$ 780,000	$ 810,000

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Effective tax rate	31.00%	28.30%	27.60%	36.30%
Income tax expense	$ 294,000	$ 139,000	$ 1,087,000	$ 508,000
Impact of discrete deferred tax benefit			13,000	$ 16,000
Impact of discrete deferred tax expense	$ 30,000		$ 30,000
Impact of discrete deferred tax benefit (expense) on effective tax rates	3.20%		0.40%	8.50%

Financing Arrangements (Details

Financing Arrangements (Details Narrative) - USD ($)	9 Months Ended
	Mar. 31, 2020	Jun. 30, 2019
Minimum tangible net worth to be maintained	$ 10,125,000
Credit Facility [Member]
Maximum borrowing capacity	2,500,000
Line of credit balance	$ 0	$ 0
Credit facility effective date	Dec. 18, 2019
Credit facility expiration date	Dec. 18, 2020
Basis spread on rate	(1.00%)
Borrowing capacity of eligible accounts receivable	$ 2,500,000
Borrowing capacity of eligible accounts receivable (percent)	57.00%
Available borrowing capacity	$ 2,500,000
Credit Facility [Member] | Prime Rate [Member]
Interest rate	3.25%

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - Stock Options [Member]	9 Months Ended	12 Months Ended
	Mar. 31, 2020	Jun. 30, 2019
Risk free interest rate - minimum		2.36%
Risk free interest rate - maximum		2.77%
Risk free interest rate	1.85%
Expected term (year)	6 years	6 years
Expected volatility	190.10%
Expected volatility - minimum		182.40%
Expected volatility - maximum		192.00%

Stock-Based Compensation (Det_2

Stock-Based Compensation (Details 1) - Stock Options [Member]	9 Months Ended
	Mar. 31, 2020$ / sharesshares
Number of Shares
Options outstanding, beginning | shares	683,000
Granted | shares	149,300
Exercised | shares	(34,418)
Cancelled or Forfeited | shares	(40,450)
Options outstanding, ending | shares	757,432
Weighted Average Grant Date Fair Value
Options outstanding, beginning | $ / shares	$ 3.84
Granted | $ / shares	5.29
Exercised | $ / shares	3.87
Cancelled or Forfeited | $ / shares	5.33
Options outstanding, ending | $ / shares	$ 4.05

Stock-Based Compensation (Det_3

Stock-Based Compensation (Details 2) - Restricted Stock [Member]	9 Months Ended
	Mar. 31, 2020$ / sharesshares
Number of Shares
Outstanding, beginning | shares	29,998
Granted | shares	50,500
Forfeited | shares	(3,000)
Outstanding, ending | shares	77,498
Weighted Average Grant Date Fair Value
Outstanding, beginning | $ / shares	$ 5.46
Granted | $ / shares	6.88
Forfeited | $ / shares	9.74
Outstanding, ending | $ / shares	$ 6.22

Stock-Based Compensation (Det_4

Stock-Based Compensation (Details Narrative) - USD ($)	9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share-based compensation expense	$ 676,558	$ 729,470
Unrecognized compensation expense	$ 730,000
Unrecognized compensation expense, period for recognition	8 months 12 days
Stock Options [Member]
Options outstanding, intrinsic value	$ 6,062,000
Options exercisable, intrinsic value	$ 4,202,000
Outstanding exercisable	477,756
Weighted average contractual term outstanding stock options	6 years 7 months 28 days
Restricted Stock [Member]
Fair value on grant date	$ 6.88
Restricted Stock [Member] | Directors [Member]
Vesting term of awards	6 months
Fair value on grant date	$ 9.74
Restricted stock issued	18,000
2017 Plan [Member] | Stock Options [Member]
Options outstanding (shares)	149,300
Restricted stock issued	149,300
2017 Plan [Member]
Shares available for issuance	900,000
Available for grant, shares	504,900
Options outstanding (shares)	287,932
Restricted Stock outstanding (shares)	77,498
2014 Plan [Member]
Options outstanding (shares)	469,500
Employees [Member] | Restricted Stock [Member]
Fair value on grant date	$ 5.29
Restricted stock issued	32,500
Employees [Member] | Restricted Stock [Member] | Minimum [Member]
Vesting term of awards	1 year
Employees [Member] | Restricted Stock [Member] | Maximum [Member]
Vesting term of awards	3 years

Leases (Details)

Leases (Details) - USD ($)		Mar. 31, 2020	Jun. 30, 2019
Year ending June 30:
2020	[1]	$ 23,000
2021		73,000
2022		9,000
2023		1,000
Total lease payments		106,000
Less: interest		(5,000)
Present value of lease liabilities		$ 101,000	$ 45,000
[1]	Three months ending June 30, 2020

Leases (Details Narrative)

Leases (Details Narrative)	9 Months Ended
	Mar. 31, 2020USD ($)Number	Jun. 30, 2019USD ($)
Number of operating leases | Number	4
Right of use asset - Operating leases	$ 100,000	$ 45,000
Operating lease liabilities	$ 101,000	$ 45,000
Weighted average lease term	9 months 18 days
Weighted average discount rate	4.00%
Operating lease payments included in cash flows	$ 55,000
Office Equipment [Member]
Monthly lease payment	1,500
Minimum [Member]
Escalating payments per month	450
Maximum [Member]
Escalating payments per month	$ 4,400

Subsequent Events (Details Narr

Subsequent Events (Details Narrative)	Apr. 10, 2020USD ($)
Subsequent Event [Member] | Coronavirus Aid Relief And Economic Security Act ("CARES Act") [Member]
Grants received	$ 913,000