Cover
Cover - USD ($) | 12 Months Ended | ||
Jun. 30, 2024 | Aug. 20, 2024 | Dec. 31, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Jun. 30, 2024 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2024 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity File Number | 001-34839 | ||
Entity Registrant Name | Electromed, Inc. | ||
Entity Central Index Key | 0001488917 | ||
Entity Tax Identification Number | 41-1732920 | ||
Entity Incorporation, State or Country Code | MN | ||
Entity Address, Address Line One | 500 Sixth Avenue NW | ||
Entity Address, City or Town | New Prague | ||
Entity Address, State or Province | MN | ||
Entity Address, Postal Zip Code | 56071 | ||
City Area Code | (952) | ||
Local Phone Number | 758-9299 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | ELMD | ||
Security Exchange Name | NYSEAMER | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 83,862,301 | ||
Entity Common Stock, Shares Outstanding | 8,638,917 | ||
Document Financial Statement Error Correction [Flag] | false | ||
Auditor Name | RSM US LLP | ||
Auditor Location | Rochester, Minnesota | ||
Auditor Firm ID | 49 |
Balance Sheets
Balance Sheets - USD ($) | Jun. 30, 2024 | Jun. 30, 2023 |
Current Assets | ||
Cash and cash equivalents | $ 16,080,000 | $ 7,372,000 |
Accounts receivable (net of allowances for credit losses of $45,000) | 23,333,000 | 24,130,000 |
Contract assets | 719,000 | 487,000 |
Inventories | 3,712,000 | 4,221,000 |
Prepaid expenses and other current assets | 329,000 | 1,577,000 |
Total current assets | 44,173,000 | 37,787,000 |
Property and equipment, net | 5,165,000 | 5,672,000 |
Finite-life intangible assets, net | 657,000 | 605,000 |
Other assets | 87,000 | 161,000 |
Deferred income taxes | 2,152,000 | 1,581,000 |
Total assets | 52,234,000 | 45,806,000 |
Current Liabilities | ||
Accounts payable | 1,010,000 | 1,372,000 |
Accrued compensation | 3,893,000 | 3,018,000 |
Income tax payable | 277,000 | 336,000 |
Warranty reserve | 1,567,000 | 1,378,000 |
Other accrued liabilities | 930,000 | 1,949,000 |
Total current liabilities | 7,677,000 | 8,053,000 |
Other long-term liabilities | 12,000 | 86,000 |
Total liabilities | 7,689,000 | 8,139,000 |
Shareholders’ Equity | ||
Common stock, $0.01 par value, 13,000,000 shares authorized; 8,637,883 and 8,555,236 issued and outstanding, as of June 30, 2024 and June 30, 2023, respectively | 87,000 | 86,000 |
Additional paid-in capital | 20,790,000 | 18,788,000 |
Retained earnings | 23,668,000 | 18,793,000 |
Total shareholders’ equity | 44,545,000 | 37,667,000 |
Total liabilities and shareholders’ equity | $ 52,234,000 | $ 45,806,000 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2024 | Jun. 30, 2023 |
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 | 8,637,883 | 8,555,236 |
Common stock, outstanding | 8,637,883 | 8,555,236 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||
Net revenues | $ 54,716,000 | $ 48,067,000 |
Cost of revenues | 12,990,000 | 11,548,000 |
Gross profit | 41,726,000 | 36,519,000 |
Operating expenses | ||
Selling, general and administrative | 34,489,000 | 31,595,000 |
Research and development | 656,000 | 916,000 |
Total operating expenses | 35,145,000 | 32,511,000 |
Operating income | 6,581,000 | 4,008,000 |
Interest income, net | 455,000 | 78,000 |
Net income before income taxes | 7,036,000 | 4,086,000 |
Income tax expense | 1,886,000 | 920,000 |
Net income | $ 5,150,000 | $ 3,166,000 |
Income per share: | ||
Basic | $ 0.60 | $ 0.37 |
Diluted | $ 0.58 | $ 0.36 |
Weighted-average common shares outstanding: | ||
Basic | 8,562,245 | 8,463,684 |
Diluted | 8,864,585 | 8,700,833 |
Statements of Shareholders' Equ
Statements of Shareholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Jun. 30, 2022 | $ 85,000 | $ 18,308,000 | $ 15,780,000 | $ 34,173,000 |
Balance at beginning (in shares) at Jun. 30, 2022 | 8,475,436 | |||
Net income | 3,166,000 | 3,166,000 | ||
Issuance of restricted stock, net | ||||
Issuance of restricted stock, net (in shares) | 28,701 | |||
Issuance of common stock upon exercise of options | $ 1,000 | 82,000 | 83,000 | |
Issuance of common stock upon exercise of options (in shares) | 66,467 | |||
Taxes paid on stock option exercised on a net basis | (310,000) | (310,000) | ||
Share-based compensation expense | 708,000 | 708,000 | ||
Repurchase of common stock | (153,000) | (153,000) | ||
Repurchase of common stock (in shares) | (15,368) | |||
Ending balance, value at Jun. 30, 2023 | $ 86,000 | 18,788,000 | 18,793,000 | $ 37,667,000 |
Balance at ending (in shares) at Jun. 30, 2023 | 8,555,236 | 8,555,236 | ||
Net income | 5,150,000 | $ 5,150,000 | ||
Issuance of restricted stock, net | ||||
Issuance of restricted stock, net (in shares) | 44,428 | |||
Issuance of common stock upon exercise of options | $ 1,000 | 310,000 | 311,000 | |
Issuance of common stock upon exercise of options (in shares) | 56,580 | |||
Share-based compensation expense | 1,692,000 | 1,692,000 | ||
Repurchase of common stock | (275,000) | $ (275,000) | ||
Repurchase of common stock (in shares) | (18,361) | (258,356) | ||
Ending balance, value at Jun. 30, 2024 | $ 87,000 | $ 20,790,000 | $ 23,668,000 | $ 44,545,000 |
Balance at ending (in shares) at Jun. 30, 2024 | 8,637,883 | 8,637,883 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash Flows from Operating Activities | ||
Net income | $ 5,150,000 | $ 3,166,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 789,000 | 550,000 |
Amortization of finite-life intangible assets | 52,000 | 63,000 |
Share-based compensation expense | 1,692,000 | 708,000 |
Deferred income taxes | (571,000) | (43,000) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 797,000 | (3,078,000) |
Contract assets | (232,000) | (201,000) |
Inventories | 459,000 | (1,033,000) |
Prepaid expenses and other current assets | 1,321,000 | 202,000 |
Income tax payable | (59,000) | 285,000 |
Accounts payable and accrued liabilities | (1,206,000) | 420,000 |
Accrued compensation | 875,000 | 276,000 |
Net cash provided by operating activities | 9,067,000 | 1,315,000 |
Cash Flows from Investing Activities | ||
Expenditures for property and equipment | (287,000) | (1,648,000) |
Expenditures for finite-life intangible assets | (108,000) | (68,000) |
Net cash used in investing activities | (395,000) | (1,716,000) |
Cash Flows from Financing Activities | ||
Issuance of common stock upon exercise of options | 311,000 | 83,000 |
Taxes paid on stock options exercised on a net basis | (310,000) | |
Repurchase of common stock | (275,000) | (153,000) |
Net cash provided by (used in) financing activities | 36,000 | (380,000) |
Net increase (decrease) in cash | 8,708,000 | (781,000) |
Cash and cash equivalents | ||
Beginning of period | 7,372,000 | 8,153,000 |
End of period | 16,080,000 | 7,372,000 |
Supplemental Disclosures of Cash Flow Information | ||
Cash paid for income taxes | 2,514,000 | 676,000 |
Supplemental Disclosures of Noncash Investing and Financing Activities | ||
Property and equipment acquisitions in accounts payable | 4,000 | 60,000 |
Intangible asset acquisitions in accounts payable | 4,000 | |
Lease assets obtained in exchange for new operating lease liabilities | 120,000 | |
Demonstration equipment transferred from inventory to property and equipment | $ 50,000 | $ 10,000 |
Nature of Business and Summary
Nature of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Summary of Significant Accounting Policies | Note 1. Nature of Business and Summary of Significant Accounting Policies Nature of business: 470,000 424,000 Since its inception, the Company has operated in a single industry segment: developing, manufacturing, and marketing medical equipment. A summary of the Company’s significant accounting policies follows: Use of estimates Revenue recognition Shipping and handling expense 383,000 896,000 Cash and cash equivalents Accounts receivable Contract assets Inventories Property and equipment Leases Finite-life intangible assets Long-lived assets The amount of the impairment loss to be recorded, if any, is calculated as the excess of the asset’s or assets group’s carrying amount over its estimated fair value. In addition, we periodically reassess the estimated remaining useful lives of our long-lived and finite-life intangible assets. Changes to estimated useful lives would impact the amount of depreciation and amortization expense recorded in earnings. We have experienced no significant changes in the carrying amount or estimated remaining useful lives of our long-lived or amortizable intangible assets. Warranty liability Changes in the Company’s warranty liability were as follows Schedule of changes in warranty liability Years Ended June 30, 2024 2023 Beginning warranty reserve $ 1,378,000 $ 1,256,000 Accrual for products sold 559,000 416,000 Expenditures and costs incurred for warranty claims (370,000 ) (294,000 ) Ending warranty reserve $ 1,567,000 $ 1,378,000 Income taxes The Company recognizes tax liabilities when the Company believes that certain positions may not be fully sustained upon review by tax authorities. Benefits from tax positions are measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences impact income tax expense in the period in which such determination is made. Interest and penalties, if any, related to accrued liabilities for potential tax assessments are included in income tax expense. Research and development Advertising costs 1,487,000 1,244,000 Share-based payments Fair value of financial instruments Net income per common share 302,340 237,149 288,792 194,154 Recently Issued Accounting Standards Accounting Standards Update (“ASU”) 2016-13 – Credit Losses: Measurement of Credit Losses on Financial Instruments (subsequently amended by ASU 2018-19, 2019-04, 2019-05, 2019-10, 2019-11, and 2020-02) The standard introduces new accounting guidance for credit losses on financial instruments within its scope, including trade receivables. This new guidance adds an impairment model that is based on expected losses rather than incurred losses. This standard was adopted July 1, 2023 and does not have a material impact on the financial statements. ASU 2023-07 - Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures The standard introduces increased disclosure requirements primarily related to significant segment expenses, along with disclosure of key criteria and metrics utilized by the Chief Operating Decision Maker (“CODM”). It is effective for annual periods beginning after December 15, 2023, with early adoption permitted. The Company is currently evaluating the impact of adoption and additional disclosure requirements. ASU 2023-09 - Income Taxes (Topic 740): Improvements to Income Tax Disclosures The standard introduces increased transparency about income tax information through the requirement of increased disclosures around specific categories in the rate reconciliation and requiring additional information on reconciling items. It is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of adoption and additional disclosure requirements. |
Revenues
Revenues | 12 Months Ended |
Jun. 30, 2024 | |
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 consideration paid or payable from 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 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 SmartVest System after control has transferred to a customer are accounted for as a fulfillment cost and are included in cost of revenues in the Statements of Operations. The timing of revenue recognition, billings and cash collections results in accounts receivable on the Balance Sheets as further described above under Accounts receivable Contract assets Disaggregation of revenues. Schedule of disaggregated revenue Years Ended June 30, 2024 2023 Homecare $ 49,503,000 $ 43,945,000 Hospital 2,535,000 2,080,000 Homecare distributor 1,852,000 1,618,000 Other 826,000 424,000 Total $ 54,716,000 $ 48,067,000 In the following table, homecare revenue is disaggregated by payer type: Years Ended June 30, 2024 2023 Commercial $ 24,215,000 $ 18,481,000 Medicare 18,627,000 18,682,000 Medicare Supplemental 4,706,000 5,000,000 Medicaid 1,114,000 941,000 Other 841,000 841,000 Total $ 49,503,000 $ 43,945,000 Revenues are recognized at a point in time when control passes to the customer upon product shipment or delivery. Performance obligations and transaction price. Homecare market The Company makes available to its homecare 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 homecare market consist of a single performance obligation: the SmartVest System. Homecare 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 the type of transaction, provided criteria for an enforceable contract are met, it is the Company’s long-standing business practice to regard all homecare agreements as transferring control to the patient upon shipment or delivery, despite possible payment cancellation under government or commercial programs where the payer is controlling the payment over specified time periods. For homecare 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 or delivery 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 homecare 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, 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. 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 many 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 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. Homecare distributors. Hospital 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. ● Wrap usage agreements – Under these transactions, the Company provides a generator device at no cost to the hospital in return for a fixed annual commitment to purchase consumable wraps. These agreements are cancellable upon at least sixty days prior written notice by either party. If cancelled, the generator is returned to the Company, where it can be refurbished and used again later. Revenue for the consumable wraps is recognized when control transfers to the customer. Other Revenue. Product warranty. Contract balances. Schedule of contract assets June 30, 2024 2023 Receivables, included in “Accounts receivable, net of allowance for credit losses” $ 23,333,000 $ 24,130,000 Contract Assets $ 719,000 $ 487,000 Total Accounts receivable, net of allowances for credit losses, as of June 30, 2022 were $21,052,000. Significant changes in contract assets during the period are as follows: Year Ended June 30, 2024 Year Ended June 30, 2023 Increase (decrease) Increase (decrease) Contract assets, beginning $ 487,000 $ 286,000 Reclassification of contract assets to accounts receivable (2,325,000 ) (1,220,000 ) Contract assets recognized 2,840,000 1,351,000 Increase (decrease) as a result of changes in the estimate of amounts to be realized from payers, excluding amounts transferred to receivables during the period (283,000 ) 70,000 Contract assets, ending $ 719,000 $ 487,000 |
Inventories
Inventories | 12 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 3. Inventories The components of inventory were as follows: Schedule of components of inventories June 30, 2024 2023 Parts inventory $ 2,556,000 $ 3,420,000 Work in process 454,000 470,000 Finished goods 834,000 323,000 Estimated inventory to be returned 265,000 265,000 Less: Reserve for obsolescence (397,000 ) (257,000 ) Total $ 3,712,000 $ 4,221,000 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 4. Property and Equipment Property and equipment were as follows: Schedule of property and equipment, including assets under capital leases Estimated Useful June 30, 2024 2023 Building and building improvements 15 40 $ 3,448,000 $ 3,427,000 Land N/A 200,000 200,000 Land improvements 15 20 173,000 173,000 Equipment 3 10 3,101,000 3,024,000 Software 3 7 2,236,000 2,166,000 Demonstration and rental equipment 3 1,105,000 1,090,000 Construction in progress N/A 72,000 8,000 10,335,000 10,088,000 Less: Accumulated depreciation (5,170,000 ) (4,416,000 ) Net property and equipment $ 5,165,000 $ 5,672,000 |
Finite-life Intangible Assets
Finite-life Intangible Assets | 12 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-life Intangible Assets | Note 5. Finite-life Intangible Assets The carrying value of patents and trademarks includes the original cost of obtaining the patents, periodic renewal fees, and other costs associated with maintaining and defending patent and trademark rights. Patents and trademarks are amortized over their estimated useful lives, generally 15 12 273,000 224,000 The activity and net balances of finite-life intangible assets were as follows: Schedule of activity and balances of finite-life intangible assets Years Ended June 30, 2024 2023 Balance, beginning $ 605,000 $ 599,000 Additions 104,000 69,000 Amortization expense (52,000 ) (63,000 ) Balance, ending $ 657,000 $ 605,000 Based on the carrying value as of June 30, 2024, future amortization is expected to be as follows: Schedule of future amortization of finite-life intangible assets Fiscal years ending June 30: 2025 $ 49,000 2026 49,000 2027 48,000 2028 47,000 2029 44,000 Thereafter 420,000 Total $ 657,000 |
Financing Arrangements
Financing Arrangements | 12 Months Ended |
Jun. 30, 2024 | |
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 13, 2023 2,500,000 no 8.50 1.0 2,500,000 57.0 December 18, 2025 2,500,000 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 |
Common Stock
Common Stock | 12 Months Ended |
Jun. 30, 2024 | |
Common Stock | |
Common Stock | Note 7. Common Stock Authorized shares: 15,000,000 13,000,000 0.01 2,000,000 On May 26, 2021, the Company’s Board of Directors (the “Board”) approved a stock repurchase authorization. Under the authorization, the Company was originally able to repurchase up to $ 3.0 258,356 3,000,000 11.61 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Note 8. Share-Based Compensation Share-based compensation expense for fiscal 2024 and 2023 was $ 1,692,000 708,000 1,659,000 3.0 1.99 2.59 Employee options: 850,000 458,973 1,100 1,031,734 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 accounted for as they occur. The following assumptions were used to estimate the fair value of options granted: Schedule of assumptions used to estimate fair value of options granted Years Ended June 30, 2024 2023 Risk-free interest rate 3.85 4.64 2.88 4.23 Expected term (years) 6 6 Expected volatility 51 52 53 54 The following table presents employee stock option activity for fiscal 2024 and 2023: Schedule of stock option transactions Number of Shares Weighted- Average Grant Date Fair Value Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (in Years) Options outstanding as of June 30, 2022 502,084 $ 3.71 $ 5.82 5.35 Granted 104,325 $ 5.35 $ 9.93 — Exercised (101,357 ) $ 1.44 $ 2.21 — Canceled or forfeited (53,482 ) $ 6.33 $ 11.29 — Options outstanding as of June 30, 2023 451,570 $ 4.28 $ 6.93 5.53 Options exercisable as of June 30, 2023 377,875 $ 4.00 $ 6.25 4.90 Granted 263,162 $ 5.78 $ 10.70 — Exercised (56,580 ) $ 3.66 $ 5.50 — Canceled or forfeited (23,079 ) $ 5.81 $ 10.46 — Options outstanding as of June 30, 2024 635,073 $ 4.91 $ 8.49 6.40 Options exercisable as of June 30, 2024 378,270 $ 4.34 $ 7.03 4.68 The intrinsic value of a stock option is the amount by which the fair value of the underlying stock exceeds its exercise price. At June 30, 2024, the weighted average remaining contractual term for all outstanding stock options was 6.4 4,154,000 635,073 378,270 3,029,000 Restricted stock: The Company issued restricted stock awards to employees totaling 23,428 32,400 three 10.74 9.92 21,000 21,000 10.44 9.86 Schedule of restricted stock transactions Shares of Restricted Stock Weighted-Average Grant Date Fair Value per Share Unvested awards outstanding as of June 30, 2022 34,684 $ 12.59 Granted 53,400 $ 9.90 Vested (45,152 ) $ 11.05 Canceled or forfeited (24,699 ) $ 11.33 Unvested awards outstanding as of June 30, 2023 18,233 $ 10.23 Granted 44,428 $ 10.60 Vested (40,034 ) $ 10.45 Canceled or forfeited — — Unvested awards outstanding as of June 30, 2024 22,627 $ 10.57 Performance-Based Restricted Stock Units The Company granted 175,000 The performance-based restricted stock units will be eligible to vest and settle into shares of common stock on a 1-for-1 basis with respect to one-half of the shares upon achieving a total shareholder return of 50% and the remaining shares upon a total shareholder return of 100%, in each case within four years of the date of grant. The grant date fair value of the awards was determined using a Monte Carlo valuation model with an expected term of four years. The weighted average grant date fair value per unit was $ 6.58 175,000 863,000 3.00 |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9. Income Taxes Components of the provision for income taxes were as follows: Schedule of components of the provision for income taxes Years Ended June 30, 2024 2023 Current: Current Federal $ 1,935,000 $ 744,000 Current State 522,000 219,000 Total Current 2,457,000 963,000 Deferred: Deferred Federal (516,000 ) (20,000 ) Deferred State (55,000 ) (23,000 ) Total Deferred (571,000 ) (43,000 ) Total Income Tax Expense $ 1,886,000 $ 920,000 Actual income tax expense differs from the expected tax expense, computed by applying the statutory federal income tax rate to the Company’s earnings before income taxes, as follows: Schedule of effective income tax reconciliation Years Ended June 30, 2024 2023 Tax expense at statutory federal rate $ 1,477,000 $ 858,000 State income tax expense, net of federal tax effect 369,000 155,000 Share based compensation (82,000 ) (212,000 ) Disallowed meal expenses 169,000 69,000 Change in valuation allowance on deferred tax assets — 11,000 Other permanent items (47,000 ) 39,000 Income tax expense $ 1,886,000 $ 920,000 The effective tax rates for fiscal 2024 and 2023 were 26.8 22.5 The significant components of deferred income taxes were as follows: Schedule of significant components of deferred income taxes June 30, 2024 2023 Deferred tax assets: Revenue recognition and accounts receivable reserves $ 1,361,000 $ 1,292,000 Accrued liabilities 335,000 252,000 Finite-life intangible assets 262,000 126,000 Stock based compensation 768,000 516,000 Tax credits 258,000 221,000 Other 77,000 35,000 Subtotal 3,061,000 2,442,000 Less: Valuation allowance (258,000 ) (221,000 ) Net deferred tax assets 2,803,000 2,221,000 Deferred tax liabilities: Property and equipment (651,000 ) (640,000 ) Total deferred tax liabilities (651,000 ) (640,000 ) Net deferred tax assets $ 2,152,000 $ 1,581,000 The Company has research and development state tax credit carryforwards of $ 258,000 221,000 258,000 221,000 The Company applies the accounting standard for uncertain tax positions pursuant to which a more-likely-than-not threshold is utilized to determine the recognition and derecognition of uncertain tax positions. Once the more-likely-than-not threshold is met, the amount of benefit to be recognized is the largest amount of tax benefit that is greater than 50 percent likely of being ultimately realized upon settlement. It further requires that a change in judgment related to the expected ultimate resolution of uncertain tax positions be recognized in earnings in the period of such a change. The Company does not believe that it has any material uncertain tax positions as of June 30, 2024, and June 30, 2023. The Company is subject to U.S. federal income tax as well as income tax of multiple state jurisdictions. With limited exceptions, the Company is no longer subject to federal and state income tax examinations by tax authorities for fiscal year ended prior to June 30, 2021. The Internal Revenue Service has completed its examination of the Company’s U.S. federal income tax return for the fiscal year ended June 30, 2021, without proposing any adjustments. The Company is not under any current income tax examinations by any other state or local taxing authority. If any issues addressed in the Company’s tax audits are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs. |
Leases
Leases | 12 Months Ended |
Jun. 30, 2024 | |
Leases | |
Leases | Note 10. Leases The Company has leases for office and warehouse space and office equipment that require monthly payments. These leases have payments ranging from $ 200 5,300 The Company has recognized right of use assets associated with its operating leases of $ 87,000 161,000 As of June 30, 2024, and June 30, 2023, the Company had a weighted-average lease term of 1.1 1.5 4.0 4.0 78,000 Maturities of lease liabilities, which are included in other accrued liabilities and other long-term liabilities on the Balance Sheet, are as follows: Schedule of maturities of lease liabilities Fiscal years ending June 30: 2025 $ 80,000 2026 9,000 Total lease payments 89,000 Less: Interest (2,000 ) Present value of lease liabilities $ 87,000 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11. Commitments and Contingencies Litigation: 401(k) Profit Sharing Plan: 21 598,000 524,000 Employment Agreements: |
Related Parties
Related Parties | 12 Months Ended |
Jun. 30, 2024 | |
Related Party Transactions [Abstract] | |
Related Parties | Note 12. Related Parties The Company uses a parts supplier whose founder and president was a director of the Company through November 12, 2021. The former director has remained a beneficial owner of greater than 5% of the Company’s outstanding common stock through June 30, 2024. The Company made payments to the supplier of $ 2,051,000 1,857,000 18,000 247,000 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 13. Segment Reporting Our President and Chief Executive Officer is our chief operating decision maker (“CODM”). The CODM reviews financial information, including long-lived assets, presented on a consolidated basis, accompanied by information about revenue by market, for purposes of allocating resources and evaluating financial performance. We have a single active product and engage in the single business activity of [selling and supporting that single product]. There are no segment managers who are held accountable for operations, operating results or plans for levels or components below the consolidated level. Accordingly, we have determined that we have a single reportable and operating segment structure. We and our CODM evaluate performance based on revenue from our single product in the markets in which the Company operates. Revenue by market is described above in Note 2. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 14. Subsequent Events The Company evaluates, as of each reporting period, events or transactions that occur after the balance sheet date through the date the financial statements are issued for either disclosure or adjustment to the Company’s financial results. Except as described below, there have been no events subsequent to June 30, 2024, which would require recognition in the Financial Statements or Notes to the Financial Statements. |
Nature of Business and Summar_2
Nature of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of estimates | Use of estimates |
Revenue recognition | Revenue recognition |
Shipping and handling expense | Shipping and handling expense 383,000 896,000 |
Cash and cash equivalents | Cash and cash equivalents |
Accounts receivable | Accounts receivable |
Contract assets | Contract assets |
Inventories | Inventories |
Property and equipment | Property and equipment |
Leases | Leases |
Finite-life intangible assets | Finite-life intangible assets |
Long-lived assets | Long-lived assets The amount of the impairment loss to be recorded, if any, is calculated as the excess of the asset’s or assets group’s carrying amount over its estimated fair value. In addition, we periodically reassess the estimated remaining useful lives of our long-lived and finite-life intangible assets. Changes to estimated useful lives would impact the amount of depreciation and amortization expense recorded in earnings. We have experienced no significant changes in the carrying amount or estimated remaining useful lives of our long-lived or amortizable intangible assets. |
Warranty liability | Warranty liability Changes in the Company’s warranty liability were as follows Schedule of changes in warranty liability Years Ended June 30, 2024 2023 Beginning warranty reserve $ 1,378,000 $ 1,256,000 Accrual for products sold 559,000 416,000 Expenditures and costs incurred for warranty claims (370,000 ) (294,000 ) Ending warranty reserve $ 1,567,000 $ 1,378,000 |
Income taxes | Income taxes The Company recognizes tax liabilities when the Company believes that certain positions may not be fully sustained upon review by tax authorities. Benefits from tax positions are measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences impact income tax expense in the period in which such determination is made. Interest and penalties, if any, related to accrued liabilities for potential tax assessments are included in income tax expense. |
Research and development | Research and development |
Advertising costs | Advertising costs 1,487,000 1,244,000 |
Share-based payments | Share-based payments |
Fair value of financial instruments | Fair value of financial instruments |
Net income per common share | Net income per common share 302,340 237,149 288,792 194,154 |
Recently Issued Accounting Standards | Recently Issued Accounting Standards Accounting Standards Update (“ASU”) 2016-13 – Credit Losses: Measurement of Credit Losses on Financial Instruments (subsequently amended by ASU 2018-19, 2019-04, 2019-05, 2019-10, 2019-11, and 2020-02) The standard introduces new accounting guidance for credit losses on financial instruments within its scope, including trade receivables. This new guidance adds an impairment model that is based on expected losses rather than incurred losses. This standard was adopted July 1, 2023 and does not have a material impact on the financial statements. ASU 2023-07 - Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures The standard introduces increased disclosure requirements primarily related to significant segment expenses, along with disclosure of key criteria and metrics utilized by the Chief Operating Decision Maker (“CODM”). It is effective for annual periods beginning after December 15, 2023, with early adoption permitted. The Company is currently evaluating the impact of adoption and additional disclosure requirements. ASU 2023-09 - Income Taxes (Topic 740): Improvements to Income Tax Disclosures The standard introduces increased transparency about income tax information through the requirement of increased disclosures around specific categories in the rate reconciliation and requiring additional information on reconciling items. It is effective for annual periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of adoption and additional disclosure requirements. |
Nature of Business and Summar_3
Nature of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of changes in warranty liability | Changes in the Company’s warranty liability were as follows Schedule of changes in warranty liability Years Ended June 30, 2024 2023 Beginning warranty reserve $ 1,378,000 $ 1,256,000 Accrual for products sold 559,000 416,000 Expenditures and costs incurred for warranty claims (370,000 ) (294,000 ) Ending warranty reserve $ 1,567,000 $ 1,378,000 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregated revenue | Disaggregation of revenues. Schedule of disaggregated revenue Years Ended June 30, 2024 2023 Homecare $ 49,503,000 $ 43,945,000 Hospital 2,535,000 2,080,000 Homecare distributor 1,852,000 1,618,000 Other 826,000 424,000 Total $ 54,716,000 $ 48,067,000 In the following table, homecare revenue is disaggregated by payer type: Years Ended June 30, 2024 2023 Commercial $ 24,215,000 $ 18,481,000 Medicare 18,627,000 18,682,000 Medicare Supplemental 4,706,000 5,000,000 Medicaid 1,114,000 941,000 Other 841,000 841,000 Total $ 49,503,000 $ 43,945,000 |
Schedule of contract assets | Contract balances. Schedule of contract assets June 30, 2024 2023 Receivables, included in “Accounts receivable, net of allowance for credit losses” $ 23,333,000 $ 24,130,000 Contract Assets $ 719,000 $ 487,000 Total Accounts receivable, net of allowances for credit losses, as of June 30, 2022 were $21,052,000. Significant changes in contract assets during the period are as follows: Year Ended June 30, 2024 Year Ended June 30, 2023 Increase (decrease) Increase (decrease) Contract assets, beginning $ 487,000 $ 286,000 Reclassification of contract assets to accounts receivable (2,325,000 ) (1,220,000 ) Contract assets recognized 2,840,000 1,351,000 Increase (decrease) as a result of changes in the estimate of amounts to be realized from payers, excluding amounts transferred to receivables during the period (283,000 ) 70,000 Contract assets, ending $ 719,000 $ 487,000 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of components of inventories | The components of inventory were as follows: Schedule of components of inventories June 30, 2024 2023 Parts inventory $ 2,556,000 $ 3,420,000 Work in process 454,000 470,000 Finished goods 834,000 323,000 Estimated inventory to be returned 265,000 265,000 Less: Reserve for obsolescence (397,000 ) (257,000 ) Total $ 3,712,000 $ 4,221,000 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment, including assets under capital leases | Property and equipment were as follows: Schedule of property and equipment, including assets under capital leases Estimated Useful June 30, 2024 2023 Building and building improvements 15 40 $ 3,448,000 $ 3,427,000 Land N/A 200,000 200,000 Land improvements 15 20 173,000 173,000 Equipment 3 10 3,101,000 3,024,000 Software 3 7 2,236,000 2,166,000 Demonstration and rental equipment 3 1,105,000 1,090,000 Construction in progress N/A 72,000 8,000 10,335,000 10,088,000 Less: Accumulated depreciation (5,170,000 ) (4,416,000 ) Net property and equipment $ 5,165,000 $ 5,672,000 |
Finite-life Intangible Assets (
Finite-life Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of activity and balances of finite-life intangible assets | The activity and net balances of finite-life intangible assets were as follows: Schedule of activity and balances of finite-life intangible assets Years Ended June 30, 2024 2023 Balance, beginning $ 605,000 $ 599,000 Additions 104,000 69,000 Amortization expense (52,000 ) (63,000 ) Balance, ending $ 657,000 $ 605,000 |
Schedule of future amortization of finite-life intangible assets | Based on the carrying value as of June 30, 2024, future amortization is expected to be as follows: Schedule of future amortization of finite-life intangible assets Fiscal years ending June 30: 2025 $ 49,000 2026 49,000 2027 48,000 2028 47,000 2029 44,000 Thereafter 420,000 Total $ 657,000 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
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 options granted: Schedule of assumptions used to estimate fair value of options granted Years Ended June 30, 2024 2023 Risk-free interest rate 3.85 4.64 2.88 4.23 Expected term (years) 6 6 Expected volatility 51 52 53 54 |
Schedule of stock option transactions | The following table presents employee stock option activity for fiscal 2024 and 2023: Schedule of stock option transactions Number of Shares Weighted- Average Grant Date Fair Value Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (in Years) Options outstanding as of June 30, 2022 502,084 $ 3.71 $ 5.82 5.35 Granted 104,325 $ 5.35 $ 9.93 — Exercised (101,357 ) $ 1.44 $ 2.21 — Canceled or forfeited (53,482 ) $ 6.33 $ 11.29 — Options outstanding as of June 30, 2023 451,570 $ 4.28 $ 6.93 5.53 Options exercisable as of June 30, 2023 377,875 $ 4.00 $ 6.25 4.90 Granted 263,162 $ 5.78 $ 10.70 — Exercised (56,580 ) $ 3.66 $ 5.50 — Canceled or forfeited (23,079 ) $ 5.81 $ 10.46 — Options outstanding as of June 30, 2024 635,073 $ 4.91 $ 8.49 6.40 Options exercisable as of June 30, 2024 378,270 $ 4.34 $ 7.03 4.68 |
Schedule of restricted stock transactions | Schedule of restricted stock transactions Shares of Restricted Stock Weighted-Average Grant Date Fair Value per Share Unvested awards outstanding as of June 30, 2022 34,684 $ 12.59 Granted 53,400 $ 9.90 Vested (45,152 ) $ 11.05 Canceled or forfeited (24,699 ) $ 11.33 Unvested awards outstanding as of June 30, 2023 18,233 $ 10.23 Granted 44,428 $ 10.60 Vested (40,034 ) $ 10.45 Canceled or forfeited — — Unvested awards outstanding as of June 30, 2024 22,627 $ 10.57 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of the provision for income taxes | Components of the provision for income taxes were as follows: Schedule of components of the provision for income taxes Years Ended June 30, 2024 2023 Current: Current Federal $ 1,935,000 $ 744,000 Current State 522,000 219,000 Total Current 2,457,000 963,000 Deferred: Deferred Federal (516,000 ) (20,000 ) Deferred State (55,000 ) (23,000 ) Total Deferred (571,000 ) (43,000 ) Total Income Tax Expense $ 1,886,000 $ 920,000 |
Schedule of effective income tax reconciliation | Actual income tax expense differs from the expected tax expense, computed by applying the statutory federal income tax rate to the Company’s earnings before income taxes, as follows: Schedule of effective income tax reconciliation Years Ended June 30, 2024 2023 Tax expense at statutory federal rate $ 1,477,000 $ 858,000 State income tax expense, net of federal tax effect 369,000 155,000 Share based compensation (82,000 ) (212,000 ) Disallowed meal expenses 169,000 69,000 Change in valuation allowance on deferred tax assets — 11,000 Other permanent items (47,000 ) 39,000 Income tax expense $ 1,886,000 $ 920,000 |
Schedule of significant components of deferred income taxes | The significant components of deferred income taxes were as follows: Schedule of significant components of deferred income taxes June 30, 2024 2023 Deferred tax assets: Revenue recognition and accounts receivable reserves $ 1,361,000 $ 1,292,000 Accrued liabilities 335,000 252,000 Finite-life intangible assets 262,000 126,000 Stock based compensation 768,000 516,000 Tax credits 258,000 221,000 Other 77,000 35,000 Subtotal 3,061,000 2,442,000 Less: Valuation allowance (258,000 ) (221,000 ) Net deferred tax assets 2,803,000 2,221,000 Deferred tax liabilities: Property and equipment (651,000 ) (640,000 ) Total deferred tax liabilities (651,000 ) (640,000 ) Net deferred tax assets $ 2,152,000 $ 1,581,000 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Leases | |
Schedule of maturities of lease liabilities | Maturities of lease liabilities, which are included in other accrued liabilities and other long-term liabilities on the Balance Sheet, are as follows: Schedule of maturities of lease liabilities Fiscal years ending June 30: 2025 $ 80,000 2026 9,000 Total lease payments 89,000 Less: Interest (2,000 ) Present value of lease liabilities $ 87,000 |
Schedule of changes in warranty
Schedule of changes in warranty liability (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Beginning warranty reserve | $ 1,378,000 | $ 1,256,000 |
Accrual for products sold | 559,000 | 416,000 |
Expenditures and costs incurred for warranty claims | (370,000) | (294,000) |
Ending warranty reserve | $ 1,567,000 | $ 1,378,000 |
Nature of Business and Summar_4
Nature of Business and Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Net revenues | $ 54,716,000 | $ 48,067,000 |
Cost of revenues | 12,990,000 | 11,548,000 |
Advertising, marketing and trade show costs | $ 1,487,000 | $ 1,244,000 |
Common stock equivalents included from calculation of diluted earnings per share | 302,340 | 237,149 |
Antidilutive securities excluded from computation of earnings per share | 288,792 | 194,154 |
Shipping and Handling [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Cost of revenues | $ 383,000 | $ 896,000 |
International [Member] | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Net revenues | $ 470,000 | $ 424,000 |
Schedule of disaggregated reven
Schedule of disaggregated revenue (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 54,716,000 | $ 48,067,000 |
Home Care [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 49,503,000 | 43,945,000 |
Home Care [Member] | Commercial [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 24,215,000 | 18,481,000 |
Home Care [Member] | Medicare [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 18,627,000 | 18,682,000 |
Home Care [Member] | Medicare Supplemental [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 4,706,000 | 5,000,000 |
Home Care [Member] | Medicaid [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,114,000 | 941,000 |
Home Care [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 841,000 | 841,000 |
Hospital [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 2,535,000 | 2,080,000 |
Home Care Distributor [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,852,000 | 1,618,000 |
Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 826,000 | $ 424,000 |
Schedule of contract assets (De
Schedule of contract assets (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Receivables, included in “Accounts receivable, net of allowance for credit losses” | $ 23,333,000 | $ 24,130,000 |
Contract Assets | 719,000 | 487,000 |
Contract assets beginning | 487,000 | 286,000 |
Reclassification of contract assets to accounts receivable | (2,325,000) | (1,220,000) |
Contract assets recognized | 2,840,000 | 1,351,000 |
Increase (decrease) as a result of changes in the estimate of amounts to be realized frompayers, excluding amounts transferred to receivables during the period | (283,000) | 70,000 |
Contract assets, ending | $ 719,000 | $ 487,000 |
Schedule of components of inven
Schedule of components of inventories (Details) - USD ($) | Jun. 30, 2024 | Jun. 30, 2023 |
Inventory Disclosure [Abstract] | ||
Parts inventory | $ 2,556,000 | $ 3,420,000 |
Work in process | 454,000 | 470,000 |
Finished goods | 834,000 | 323,000 |
Estimated inventory to be returned | 265,000 | 265,000 |
Less: Reserve for obsolescence | (397,000) | (257,000) |
Total | $ 3,712,000 | $ 4,221,000 |
Schedule of property and equipm
Schedule of property and equipment, including assets under capital leases (Details) - USD ($) | Jun. 30, 2024 | Jun. 30, 2023 |
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 10,335,000 | $ 10,088,000 |
Less: Accumulated depreciation | (5,170,000) | (4,416,000) |
Net property and equipment | 5,165,000 | 5,672,000 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 3,448,000 | 3,427,000 |
Building and Building Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 15 years | |
Building and Building Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 40 years | |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 200,000 | 200,000 |
Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 173,000 | 173,000 |
Land Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 15 years | |
Land Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 20 years | |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 3,101,000 | 3,024,000 |
Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 10 years | |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 2,236,000 | 2,166,000 |
Software [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Software [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 7 years | |
Demonstration and Rental Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Gross property and equipment | $ 1,105,000 | 1,090,000 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 72,000 | $ 8,000 |
Schedule of activity and balanc
Schedule of activity and balances of finite-life intangible assets (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Balance, beginning | $ 605,000 | $ 599,000 |
Additions | 104,000 | 69,000 |
Amortization expense | (52,000) | (63,000) |
Balance, ending | $ 657,000 | $ 605,000 |
Schedule of future amortization
Schedule of future amortization of finite-life intangible assets (Details) - USD ($) | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
2025 | $ 49,000 | ||
2026 | 49,000 | ||
2027 | 48,000 | ||
2028 | 47,000 | ||
2029 | 44,000 | ||
Thereafter | 420,000 | ||
Total | $ 657,000 | $ 605,000 | $ 599,000 |
Finite-life Intangible Assets_2
Finite-life Intangible Assets (Details Narrative) - USD ($) | Jun. 30, 2024 | Jun. 30, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | $ 273,000 | $ 224,000 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 15 years | |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 12 years |
Financing Arrangements (Details
Financing Arrangements (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Line of Credit Facility [Line Items] | ||
Minimum tangible net worth to be maintained | $ 10,125,000 | |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility effective date | Dec. 13, 2023 | |
Maximum borrowing capacity | $ 2,500,000 | |
Line of credit balance | $ 0 | $ 0 |
Basis spread on rate | 1% | |
Borrowing capacity of eligible accounts receivable | $ 2,500,000 | |
Available borrowing capacity | 57% | |
Credit facility expiration date | Dec. 18, 2025 | |
Available borrowing capacity | $ 2,500,000 | |
Revolving Credit Facility [Member] | Prime Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 8.50% |
Common Stock (Details Narrative
Common Stock (Details Narrative) - USD ($) | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | May 26, 2021 | |
Common stock, authorized | 13,000,000 | 13,000,000 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Number of share repurchased | 258,356 | ||
Repurchase of common stock | $ (275,000) | $ (153,000) | |
Share price | $ 11.61 | ||
Board of Directors Chairman [Member] | |||
Common stock, authorized | 3,000,000 | ||
Common Stock [Member] | |||
Common stock, authorized | 13,000,000 | ||
Common stock, par value (in dollars per share) | $ 0.01 | ||
Number of share repurchased | 18,361 | 15,368 | |
Repurchase of common stock | |||
Capital Stock [Member] | |||
Common stock, authorized | 15,000,000 | ||
Authorized Shares Undesignated Stock [Member] | |||
Common stock, authorized | 2,000,000 |
Schedule of assumptions used to
Schedule of assumptions used to estimate fair value of options granted (Details) | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | ||
Risk free interest rate - minimum | 3.85% | 2.88% |
Risk free interest rate - maximum | 4.64% | 4.23% |
Expected term (years) | 6 years | 6 years |
Expected volatility - minimum | 51% | 53% |
Expected volatility - maximum | 52% | 54% |
Schedule of stock option transa
Schedule of stock option transactions (Details) - $ / shares | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Option outstanding, ending | 635,073 | |
Option outstanding, ending | 378,270 | |
Share-Based Payment Arrangement, Option [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of shares, beginning | 451,570 | 502,084 |
Weighted average grant date fair value, beginning | $ 4.28 | $ 3.71 |
Weighted average exercise price, beginning | $ 6.93 | $ 5.82 |
Options outstanding at beginning (in years) | 5 years 4 months 6 days | |
Options exercisable, granted | 263,162 | 104,325 |
Options exercisable, granted | $ 5.78 | $ 5.35 |
Options exercisable, granted | $ 10.70 | $ 9.93 |
Options exercisable, exercised | (56,580) | (101,357) |
Options exercisable, exercised | $ 3.66 | $ 1.44 |
Options exercisable, exercised | $ 5.50 | $ 2.21 |
Options exercisable, canceled or forfeited | (23,079) | (53,482) |
Options exercisable, canceled or forfeited | $ 5.81 | $ 6.33 |
Options exercisable, canceled or forfeited | $ 10.46 | $ 11.29 |
Option outstanding, ending | 635,073 | 451,570 |
Weighted average grant date fair value, ending | $ 4.91 | $ 4.28 |
Weighted average exercise price, ending | $ 8.49 | $ 6.93 |
Option outstanding at ending (in Years) | 6 years 4 months 24 days | 5 years 4 months 6 days |
Option outstanding, ending | 378,270 | 377,875 |
Options exercisable , ending | $ 4.34 | $ 4 |
Options exercisable , ending | $ 7.03 | $ 6.25 |
Option exercisable at ending | 4 years 10 months 25 days | |
Options exercisable, ending (in years) | 4 years 8 months 5 days |
Schedule of restricted stock tr
Schedule of restricted stock transactions (Details) - Restricted Stock [Member] - $ / shares | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Outstanding, beginning | 18,233 | 34,684 |
Outstanding, beginning | $ 10.23 | $ 12.59 |
Granted | 44,428 | 53,400 |
Granted | $ 10.60 | $ 9.90 |
Vested | (40,034) | (45,152) |
Vested | $ 10.45 | $ 11.05 |
Canceled or forfeited | (24,699) | |
Canceled or forfeited | $ 11.33 | |
Outstanding, ending | 22,627 | 18,233 |
Weighted average grant date fair value, ending | $ 10.57 |
Share-Based Compensation (Detai
Share-Based Compensation (Details Narrative) - USD ($) | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Share-based compensation expense | $ 1,692,000 | $ 708,000 | |
Unrecognized compensation expense | $ 1,659,000 | ||
Unrecognized compensation expense, period for recognition | 6 years 4 months 24 days | ||
Options exercisable, intrinsic value | $ 4,154,000 | ||
Shares outstanding | 635,073 | ||
Vested and exercisable | 378,270 | ||
Options exercisable, intrinsic value | $ 3,029,000 | ||
Restricted Stock [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Fair value of per share | $ 10.74 | $ 9.92 | |
Share-Based Payment Arrangement, Option [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares outstanding | 635,073 | 451,570 | 502,084 |
Vested and exercisable | 378,270 | 377,875 | |
Granted | 263,162 | 104,325 | |
Restricted Stock Units (RSUs) [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Unrecognized compensation expense | $ 863,000 | ||
Unrecognized compensation expense, period for recognition | 3 years | ||
Shares outstanding | 175,000 | ||
Granted | 175,000 | ||
Other description | The performance-based restricted stock units will be eligible to vest and settle into shares of common stock on a 1-for-1 basis with respect to one-half of the shares upon achieving a total shareholder return of 50% and the remaining shares upon a total shareholder return of 100%, in each case within four years of the date of grant. The grant date fair value of the awards was determined using a Monte Carlo valuation model with an expected term of four years. | ||
Weighted Average Grant Date Fair Value Per Unit | $ 6.58 | ||
Current Plan [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares available for issuance | 850,000 | ||
Options outstanding (shares) | 1,100 | ||
Available for grant, shares | 1,031,734 | ||
Prior Plans [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Number of shares granted under the 2017 plan | 458,973 | ||
Employee [Member] | Restricted Stock [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Stock issued | 23,428 | 32,400 | |
Employee [Member] | Share-Based Payment Arrangement, Option [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Vesting term | 3 years | ||
Directors [Member] | Restricted Stock [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Stock issued | 21,000 | 21,000 | |
Fair value of per share | $ 10.44 | $ 9.86 | |
Maximum [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Unrecognized compensation expense, period for recognition | 3 years | ||
Minimum [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Unrecognized compensation expense, period for recognition | 1 year 11 months 26 days | ||
Weighted Average [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Unrecognized compensation expense, period for recognition | 2 years 7 months 2 days |
Schedule of components of the p
Schedule of components of the provision for income taxes (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Current: | ||
Current Federal | $ 1,935,000 | $ 744,000 |
Current State | 522,000 | 219,000 |
Total Current | 2,457,000 | 963,000 |
Deferred: | ||
Deferred Federal | (516,000) | (20,000) |
Deferred State | (55,000) | (23,000) |
Total Deferred | (571,000) | (43,000) |
Total Income Tax Expense | $ 1,886,000 | $ 920,000 |
Schedule of effective income ta
Schedule of effective income tax reconciliation (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||
Tax expense at statutory federal rate | $ 1,477,000 | $ 858,000 |
State income tax expense, net of federal tax effect | 369,000 | 155,000 |
Share-Based Payment Arrangement, Noncash Expense | 1,692,000 | 708,000 |
Disallowed meal expenses | 169,000 | 69,000 |
Change in valuation allowance on deferred tax assets | 11,000 | |
Other permanent items | (47,000) | 39,000 |
Income tax expense | $ 1,886,000 | $ 920,000 |
Schedule of significant compone
Schedule of significant components of deferred income taxes (Details) - USD ($) | Jun. 30, 2024 | Jun. 30, 2023 |
Deferred tax assets: | ||
Revenue recognition and accounts receivable reserves | $ 1,361,000 | $ 1,292,000 |
Accrued liabilities | 335,000 | 252,000 |
Finite-life intangible assets | 262,000 | 126,000 |
Stock based compensation | 768,000 | 516,000 |
Tax credits | 258,000 | 221,000 |
Other | 77,000 | 35,000 |
Subtotal | 3,061,000 | 2,442,000 |
Less: Valuation allowance | (258,000) | (221,000) |
Net deferred tax assets | 2,803,000 | 2,221,000 |
Deferred tax liabilities: | ||
Property and equipment | (651,000) | (640,000) |
Total deferred tax liabilities | (651,000) | (640,000) |
Net deferred tax assets | $ 2,152,000 | $ 1,581,000 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Effective Income Tax Rate Reconciliation [Line Items] | ||
Effective tax rate | 26.80% | 22.50% |
Valuation allowance | $ 258,000 | $ 221,000 |
State and Local Jurisdiction [Member] | ||
Effective Income Tax Rate Reconciliation [Line Items] | ||
Tax credit carryforwards | $ 258,000 | $ 221,000 |
Schedule of maturities of lease
Schedule of maturities of lease liabilities (Details) - USD ($) | Jun. 30, 2024 | Jun. 30, 2023 |
Leases | ||
2025 | $ 80,000 | |
2026 | 9,000 | |
Total lease payments | 89,000 | |
Less: Interest | (2,000) | |
Present value of lease liabilities | $ 87,000 | $ 161,000 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Property, Plant and Equipment [Line Items] | ||
Operating lease payment | $ 78,000 | |
Present value of lease liabilities | $ 87,000 | $ 161,000 |
Weighted-average lease term | 1 year 1 month 6 days | 1 year 6 months |
Weighted-average discount rate | 4% | 4% |
Office And Warehouse Space [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Operating lease payment | $ 200 | |
Office And Warehouse Space [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Operating lease payment | $ 5,300 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Employee benefit plan, minimum age requirement | 21 years | |
Employee benefit plan, employer contribution | $ 598,000 | $ 524,000 |
Related Parties (Details Narrat
Related Parties (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Related Party Transactions [Abstract] | ||
Payments to the supplier | $ 2,051,000 | $ 1,857,000 |
Payments due to supplier | $ 18,000 | $ 247,000 |