Chase General (CSGN) 10-Q 13 Nov 18 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2018	Nov. 12, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	CHASE GENERAL CORP
Entity Central Index Key	15,357
Current Fiscal Year End Date	--06-30
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		969,834
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Document Fiscal Year Focus	2,019
Document Fiscal Period Focus	Q1
Entity Small Business	true
Entity Emerging Growth Company	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2018	Jun. 30, 2018
CURRENT ASSETS
Cash and Cash Equivalents	$ 283	$ 2,129
Trade Receivables, Net of Allowance for Doubtful Accounts of $13,689 and $13,389, Respectively	553,964	135,331
Inventories:
Finished Goods	227,449	208,254
Goods in Process	17,936	10,937
Raw Materials	97,322	74,267
Packaging Materials	160,875	152,184
Prepaid Expenses	36,013	12,225
Total Current Assets	1,093,842	595,327
Property and Equipment:
Land	35,000	35,000
Buildings	77,348	77,348
Machinery and Equipment	851,791	851,791
Trucks and Autos	163,039	163,039
Office Equipment	33,025	33,025
Leasehold Improvements	72,068	72,068
Total	1,232,271	1,232,271
Less Accumulated Depreciation	1,011,336	997,091
Total Property and Equipment, Net	220,935	235,180
Total Assets	1,314,777	830,507
CURRENT LIABILITIES
Bank Overdraft	12,846
Accounts Payable	294,706	176,871
Current Maturities of Notes Payable and Line of Credit	321,365	11,224
Accrued Expenses	57,953	30,852
Refund Liability Owed to Customers	18,274
Deferred Income	1,299	1,299
Total Current Liabilities	706,443	220,246
LONG-TERM LIABILITIES
Notes Payable, Less Current Maturities	21,892	24,787
Deferred Income	7,142	7,466
Total Long-Term Liabilities	29,034	32,253
Total Liabilities	735,477	252,499
COMMITMENTS AND CONTINGENCIES
Capital Stock Issued and Outstanding:
Paid-In Capital in Excess of Par	3,134,722	3,134,722
Accumulated Deficit	(5,886,696)	(5,887,988)
Total Stockholders' Equity	579,300	578,008
Total Liabilities and Stockholders' Equity	1,314,777	830,507
Prior Cumulative Preferred Stock, $5 Par Value: | Series A
Capital Stock Issued and Outstanding:
Preferred stock, value	500,000	500,000
Prior Cumulative Preferred Stock, $5 Par Value: | Series B
Capital Stock Issued and Outstanding:
Preferred stock, value	500,000	500,000
Cumulative Preferred Stock, $20 Par Value: | Series A
Capital Stock Issued and Outstanding:
Preferred stock, value	1,170,660	1,170,660
Cumulative Preferred Stock, $20 Par Value: | Series B
Capital Stock Issued and Outstanding:
Preferred stock, value	$ 190,780	$ 190,780

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($)	Sep. 30, 2018	Jun. 30, 2018
Allowance for doubtful accounts on trade receivables (in dollars)	$ 13,689	$ 13,389
Common stock, par value (in dollars per share)	$ 1	$ 1
Prior Cumulative Preferred Stock, $5 Par Value: | Series A
Preferred stock, par value (in dollars per share)	$ 5	$ 5
Preferred stock, liquidation preference (in dollars)	$ 2,317,500	$ 2,310,000
Prior Cumulative Preferred Stock, $5 Par Value: | Series B
Preferred stock, par value (in dollars per share)	$ 5	$ 5
Preferred stock, liquidation preference (in dollars)	$ 2,272,500	$ 2,265,000
Cumulative Preferred Stock, $20 Par Value: | Series A
Preferred stock, par value (in dollars per share)	$ 20	$ 20
Preferred stock, liquidation preference (in dollars)	$ 5,209,430	$ 5,194,796
Cumulative Preferred Stock, $20 Par Value: | Series B
Preferred stock, par value (in dollars per share)	$ 20	$ 20
Preferred stock, liquidation preference (in dollars)	$ 848,979	$ 846,594

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
SALES	$ 741,520	$ 870,430
COST OF SALES	526,321	661,092
Gross Profit on Sales	215,199	209,338
OPERATING EXPENSES
Selling	72,903	112,332
General and Administrative	138,484	147,036
Total Operating Expenses	211,387	259,368
Income (Loss) from Operations	3,812	(50,030)
OTHER EXPENSE
Miscellaneous Income	363	370
Interest Expense	(2,883)	(1,978)
Total Other Income (Expense)	(2,520)	(1,608)
Income (Loss) before Income Taxes	1,292	(51,638)
INCOME TAX EXPENSE (BENEFIT)		5,209
NET INCOME (LOSS)	$ 1,292	$ (56,847)
NET LOSS PER SHARE OF COMMON STOCK
Basic (in dollars per share)	$ (0.03)	$ (0.09)
Diluted (in dollars per share)	$ (0.03)	$ (0.09)

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)	$ 1,292	$ (56,847)
Adjustments to Reconcile Net Income (Loss) to Net Cash Used by Operating Activities:
Depreciation and Amortization	14,245	17,096
Allowance for Bad Debts	300	300
Deferred Income Amortization	(324)	(324)
Deferred Income Taxes		57,740
Effects of Changes in Operating Assets and Liabilities:
Trade Receivables	(418,933)	(531,879)
Inventories	(57,940)	(10,809)
Prepaid Expenses	(23,788)	(18,152)
Income Taxes Receivable		(52,531)
Accounts Payable	117,835	202,414
Accrued Expenses	27,101	25,348
Refund Liability Owed to Customers	18,274
Net Cash Used by Operating Activities	(321,938)	(367,644)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Line-of-Credit	310,000	330,000
Principal Payments on Notes Payable	(2,754)	(3,969)
Bank Overdraft	12,846
Net Cash Provided by Financing Activities	320,092	326,031
NET DECREASE IN CASH AND CASH EQUIVALENTS	(1,846)	(41,613)
Cash and Cash Equivalents - Beginning of Period	2,129	46,182
CASH AND CASH EQUIVALENTS - END OF PERIOD	$ 283	$ 4,569

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Sep. 30, 2018
Nature Of Business And Significant Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 SIGNIFICANT ACCOUNTING POLICIES General The condensed consolidated balance sheet of Chase General Corporation (hereinafter referred to as Chase, we, our, and us) at June 30, 2018 has been condensed from audited consolidated financial statements at that date. The condensed consolidated financial statements as of and for the three months ended September 30, 2018 and for the three months ended September 30, 2017 are unaudited and reflect all normal and recurring accruals and adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position, operating results and cash flows for the interim periods presented in this quarterly report. The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto, together with management’s discussion and analysis of financial condition and results of operations, contained in our Annual Report on Form 10-K for the year ended June 30, 2018. The results of operations for the three months ended September 30, 2018 and cash flows for the three months ended September 30, 2018 are not necessarily indicative of the results for the entire fiscal year ending June 30, 2019. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary to fairly present financial position, results of operations and cash flows for the periods have been included. No events have occurred subsequent to September 30, 2018, through the date of filing this form, that would require disclosure in this Form 10-Q or would be required to be recognized in the condensed consolidated financial statements as of or for the three month period ended September 30, 2018. Revenue Recognition The majority of our revenue is derived by fulfilling customer orders for the purchase of our products, including 1) a candy bar marketed under the trade name “Cherry Mash” and 2) coconut, peanut, chocolate, and fudge confectioneries. The Company recognizes revenue at the point in time that control of the ordered product(s) is transferred to the customer, which is typically upon shipment to the customer. Shipping and handling costs incurred to ship product to the customer are recorded within cost of sales. Amounts billed and due from our customers are classified as accounts receivables on the balance sheet and require payment on a short-term basis. Generally, individual orders from customers are accounted for as a single performance obligation. Revenue is measured as the amount of consideration we expect to receive in exchange for fulfilling product orders. Sales, value add, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. The amount of consideration the Company expects to receive and revenue the Company recognizes includes estimates of variable consideration, including costs for trade promotional programs, customer incentives, and allowances and discounts associated with aged or potentially unsaleable products. These estimates are based upon our analysis of the programs offered, historical trends, and expectations regarding customer and consumer participation, sales and payment trends and our experience with payment patterns associated with similar programs offered in the past. The Company reviews and updates these estimates regularly and the impact of any adjustments are recognized in the period the adjustments are identified. The adjustments recognized in first quarter of the year ending June 30, 2019 resulting from updated estimates of revenue for prior year product sales were not significant. The majority of the Company’s products are confectionery and confectionery-based and, therefore, exhibit similar economic characteristics, such that they are based on similar ingredients and are marketed and sold through the same channels to the same customers. The Company operates two divisions, Chase Candy Products and Seasonal Candy Products. Chase Candy Products involve production and sale of a candy bar marketed under the trade name “Cherry Mash”. The Seasonal Candy Products involve production and sale of coconut, peanut, chocolate, and fudge confectioneries. Both divisions share a common labor force and utilize the same basic equipment and raw materials. Management considers these two divisions as one reportable segment. The various divisions of revenue are as follows for the three months ended September 30: 2018 2017 Sales - Chase Candy $ 294,447 $ 342,763 Sales - Seasonal Candy 447,073 527,667 Sales $ 741,520 $ 870,430 In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (ASC 606), which replaces numerous requirements in U.S. GAAP, including industry-specific requirements, and provides companies with a single revenue recognition model for recognizing revenue from contracts with customers. On July 1, 2018, we adopted the requirements of ASC 606 and all the related amendments to contracts that have not been completed as of the initial adoption date using the modified retrospective method. Upon completing our implementation assessment of ASC 606, we concluded that no adjustment was required to the opening balance of retained earnings at the date of initial application. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company identified certain amounts included in accounts payable that will be separately recorded as a current liability upon adoption of ASC 606. There will be no impact to working capital as a result of these reclassifications. The cumulative effects of the changes made to our consolidated July 1, 2018 balance sheet for the adoption of the new revenue standard were as follows: Balance at Adjustment Balance at June 30, 2018 Upon Adoption July 1, 2018 Balance Sheet Accounts Payable $ 135,311 $ (12,900 ) $ 122,411 Refund Liability Owed to Customers - 12,900 12,900 There is no change in the timing of revenue recognition upon adoption of ASC 606. The Company has identified certain amounts paid to customers which are currently recorded as selling expense. Under ASC 606, these amounts will be recorded as a reduction to revenue as the Company does not receive a distinct good or service in exchange for the payment. The total impact of adoption on our consolidated statement of operation and balance sheet was as follows: As of and for the period ended September 30, 2018 Current Previous Standard Change Standard Balance Sheet Accounts Payable $ 294,706 $ 18,274 $ 312,980 Refund Liability Owed to Customers 18,274 (18,274 ) $ - Statement of Operations Sales $ 741,520 $ 19,802 $ 761,322 Selling Expenses 72,903 19,802 $ 92,705 In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This ASU will require lessees to recognize most leases on their balance sheet as lease liabilities with corresponding right-of-use (ROU) assets. Recognition, measurement, and presentation of expenses will depend on classification as a finance or operating lease. We are currently in the process of evaluating our existing lease portfolio, including accumulating all of the necessary information required to properly account for the leases under the new standard. ASU 2016-02 is effective for us beginning July 1, 2019. The guidance originally required entities to apply ASU 2016-02 on a modified retrospective basis; however, the FASB has recently proposed guidance that would allow adoption of this standard as of the effective date without restating prior periods. We expect adoption to result in a material increase in lease-related assets and liabilities on our consolidated balance sheets; however, we do not expect it to have a significant impact on our consolidated statements of operations or cash flows. There have been no other newly issued or newly applicable accounting pronouncements that have, or are expected to have, a significant impact on the Company’s consolidated financial statements.

Earnings (LOSS) PER SHARE

Earnings (LOSS) PER SHARE	3 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Earnings (LOSS) PER SHARE	NOTE 2 Earnings (LOSS) PER SHARE The loss per share were computed on the weighted average of outstanding common shares during the period. Three Months Ended September 30 2018 2017 Net Income (Loss) $ 1,292 $ (56,847 ) Preferred Dividend Requirements: 6% Prior Cumulative Preferred, $5 Par Value 15,000 15,000 5% Convertible Cumulative Preferred, $20 Par Value 17,018 17,018 Total Dividend Requirements 32,018 32,018 Net Loss - Common Stockholders $ (30,726 ) $ (88,865 ) Diluted earnings per share are calculated by including contingently issuable shares with the weighted average shares outstanding. Three Months Ended September 30 2018 2017 Weighted Average Shares - Basic 969,834 969,834 Dilutive Effect of Contingently Issuable Shares 1,033,334 1,033,334 Weighted Average Shares – Diluted 2,003,168 2,003,168 Basic Loss per Share $ (0.03 ) $ (0.09 ) Diluted Loss per Share $ (0.03 ) $ (0.09 ) The contingently issuable shares were not included in diluted earnings per common share as they would have an antidilutive effect upon earnings per share. Cumulative Preferred Stock dividends in arrears at September 30, 2018 and 2017 totaled $8,236,968 and $8,108,896, respectively. Total dividends in arrears, on a per share basis, consist of the following: Three Months Ended September 30 2018 2017 6% Convertible Series A $ 18 $ 18 Series B $ 17 $ 17 5% Convertible Series A $ 69 $ 68 Series B $ 69 $ 68 The 6% convertible prior cumulative preferred stock may, upon 30 days prior notice, be redeemed by the Corporation at $5.25 a share plus unpaid accrued dividends to date of redemption. In the event of voluntary liquidation, holders of this stock are entitled to receive $5.25 per share plus accrued dividends. It may be exchanged for common stock at the option of the shareholders in the ratio of four common shares for one share of Series A and 3.75 common shares for one share of Series B. The Company has the privilege of redemption of 5% convertible cumulative preferred stock at $21.00 a share plus unpaid accrued dividends. In the event of voluntary or involuntary liquidation, holders of this stock are entitled to receive $20.00 a share plus unpaid accrued dividends. It may be exchanged for common stock at the option of the shareholders, in the ratio of 3.795 common shares for one of preferred.

NOTES PAYABLE AND LINE OF CREDI

NOTES PAYABLE AND LINE OF CREDIT	3 Months Ended
	Sep. 30, 2018
Notes Payable [Abstract]
NOTES PAYABLE AND LINE OF CREDIT	NOTE 3 NOTES PAYABLE AND LINE OF CREDIT The Company’s long-term debt consists of: September 30, June 30, Payee Terms 2018 2018 Nodaway $350,000 line-of-credit agreement Valley Bank expiring on January 4, 2019, with a variable interest rate at prime but not less than 5%. The line-of-credit is collateralized by substantially all assets of the Company. Management anticipates renewal of the line-of-credit agreement at similar terms upon expiration. $ 310,000 $ - Ford Credit $705 monthly payments, interest of 5.8%; final payment due October 2021, secured by a vehicle. 23,810 25,560 Toyota Credit $364 monthly payments, interest of 3.5%; final payment due December 2020, secured by a vehicle. 9,447 10,451 Total 343,257 36,011 Less: Current Portion 321,365 11,224 Long-Term Portion $ 21,892 $ 24,787 Future minimum payments for the twelve months ending September 30 are: Twelve Months Ending September 30, Amount 2019 $ 321,365 2020 11,946 2021 9,245 2022 701 2023 - Total $ 343,257

INCOME TAXES

INCOME TAXES	3 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 4 INCOME TAXES The Company follows the provisions for uncertain tax positions as addressed in Financial Accounting Standards Board Accounting Standards Codification 740-10. The Company recognized no liability for unrecognized tax benefits at September 30, 2018. The Company has no material tax positions at September 30, 2018 for which the ultimate deductibility is highly certain, but for which there is uncertainty about the timing of such deductibility. The Company’s federal income tax returns for the fiscal years ended 2016, 2017, and 2018 are subject to examination by the Internal Revenue Service (IRS) taxing authority.

SUPPLEMENTAL DISCLOSURES OF CAS

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION	3 Months Ended
	Sep. 30, 2018
Supplemental Cash Flow Elements [Abstract]
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION	NOTE 5 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Three Months Ended September 30 2018 2017 Cash Paid for: Interest $ 2,883 $ 1,978

DISCLOSURES ABOUT FAIR VALUE OF

DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS	3 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE 6 DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS The Company’s financial instruments consist principally of cash and cash equivalents, trade receivables and payables, and notes payable. There are no significant differences between the carrying value and fair value of any of these consolidated financial instruments. As of September 30, 2018, the amount of the Company’s long-term debt approximates fair value based on the present value of estimated future cash flows using a discount rate commensurate with a borrowing rate available to the Company.

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Sep. 30, 2018
Nature Of Business And Significant Accounting Policies [Abstract]
General	General The condensed consolidated balance sheet of Chase General Corporation (hereinafter referred to as Chase, we, our, and us) at June 30, 2018 has been condensed from audited consolidated financial statements at that date. The condensed consolidated financial statements as of and for the three months ended September 30, 2018 and for the three months ended September 30, 2017 are unaudited and reflect all normal and recurring accruals and adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position, operating results and cash flows for the interim periods presented in this quarterly report. The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto, together with management’s discussion and analysis of financial condition and results of operations, contained in our Annual Report on Form 10-K for the year ended June 30, 2018. The results of operations for the three months ended September 30, 2018 and cash flows for the three months ended September 30, 2018 are not necessarily indicative of the results for the entire fiscal year ending June 30, 2019. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary to fairly present financial position, results of operations and cash flows for the periods have been included. No events have occurred subsequent to September 30, 2018, through the date of filing this form, that would require disclosure in this Form 10-Q or would be required to be recognized in the condensed consolidated financial statements as of or for the three month period ended September 30, 2018.
Revenue Recognition	Revenue Recognition The majority of our revenue is derived by fulfilling customer orders for the purchase of our products, including 1) a candy bar marketed under the trade name “Cherry Mash” and 2) coconut, peanut, chocolate, and fudge confectioneries. The Company recognizes revenue at the point in time that control of the ordered product(s) is transferred to the customer, which is typically upon shipment to the customer. Shipping and handling costs incurred to ship product to the customer are recorded within cost of sales. Amounts billed and due from our customers are classified as accounts receivables on the balance sheet and require payment on a short-term basis. Generally, individual orders from customers are accounted for as a single performance obligation. Revenue is measured as the amount of consideration we expect to receive in exchange for fulfilling product orders. Sales, value add, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. The amount of consideration the Company expects to receive and revenue the Company recognizes includes estimates of variable consideration, including costs for trade promotional programs, customer incentives, and allowances and discounts associated with aged or potentially unsaleable products. These estimates are based upon our analysis of the programs offered, historical trends, and expectations regarding customer and consumer participation, sales and payment trends and our experience with payment patterns associated with similar programs offered in the past. The Company reviews and updates these estimates regularly and the impact of any adjustments are recognized in the period the adjustments are identified. The adjustments recognized in first quarter of the year ending June 30, 2019 resulting from updated estimates of revenue for prior year product sales were not significant. The majority of the Company’s products are confectionery and confectionery-based and, therefore, exhibit similar economic characteristics, such that they are based on similar ingredients and are marketed and sold through the same channels to the same customers. The Company operates two divisions, Chase Candy Products and Seasonal Candy Products. Chase Candy Products involve production and sale of a candy bar marketed under the trade name “Cherry Mash”. The Seasonal Candy Products involve production and sale of coconut, peanut, chocolate, and fudge confectioneries. Both divisions share a common labor force and utilize the same basic equipment and raw materials. Management considers these two divisions as one reportable segment. The various divisions of revenue are as follows for the three months ended September 30: 2018 2017 Sales - Chase Candy $ 294,447 $ 342,763 Sales - Seasonal Candy 447,073 527,667 Sales $ 741,520 $ 870,430
Recently Adopted Pronouncements	Recently Adopted Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (ASC 606), which replaces numerous requirements in U.S. GAAP, including industry-specific requirements, and provides companies with a single revenue recognition model for recognizing revenue from contracts with customers. On July 1, 2018, we adopted the requirements of ASC 606 and all the related amendments to contracts that have not been completed as of the initial adoption date using the modified retrospective method. Upon completing our implementation assessment of ASC 606, we concluded that no adjustment was required to the opening balance of retained earnings at the date of initial application. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company identified certain amounts included in accounts payable that will be separately recorded as a current liability upon adoption of ASC 606. There will be no impact to working capital as a result of these reclassifications. The cumulative effects of the changes made to our consolidated July 1, 2018 balance sheet for the adoption of the new revenue standard were as follows: Balance at Adjustment Balance at June 30, 2018 Upon Adoption July 1, 2018 Balance Sheet Accounts Payable $ 135,311 $ (12,900 ) $ 122,411 Refund Liability Owed to Customers - 12,900 12,900 There is no change in the timing of revenue recognition upon adoption of ASC 606. The Company has identified certain amounts paid to customers which are currently recorded as selling expense. Under ASC 606, these amounts will be recorded as a reduction to revenue as the Company does not receive a distinct good or service in exchange for the payment. The total impact of adoption on our consolidated statement of operation and balance sheet was as follows: As of and for the period ended September 30, 2018 Current Previous Standard Change Standard Balance Sheet Accounts Payable $ 294,706 $ 18,274 $ 312,980 Refund Liability Owed to Customers 18,274 (18,274 ) $ - Statement of Operations Sales $ 741,520 $ 19,802 $ 761,322 Selling Expenses 72,903 19,802 $ 92,705 Recently Issued Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This ASU will require lessees to recognize most leases on their balance sheet as lease liabilities with corresponding right-of-use (ROU) assets. Recognition, measurement, and presentation of expenses will depend on classification as a finance or operating lease. We are currently in the process of evaluating our existing lease portfolio, including accumulating all of the necessary information required to properly account for the leases under the new standard. ASU 2016-02 is effective for us beginning July 1, 2019. The guidance originally required entities to apply ASU 2016-02 on a modified retrospective basis; however, the FASB has recently proposed guidance that would allow adoption of this standard as of the effective date without restating prior periods. We expect adoption to result in a material increase in lease-related assets and liabilities on our consolidated balance sheets; however, we do not expect it to have a significant impact on our consolidated statements of operations or cash flows. There have been no other newly issued or newly applicable accounting pronouncements that have, or are expected to have, a significant impact on the Company’s consolidated financial statements.

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Sep. 30, 2018
Nature Of Business And Significant Accounting Policies [Abstract]
Schedule of divisions of revenue	2018 2017 Sales - Chase Candy $ 294,447 $ 342,763 Sales - Seasonal Candy 447,073 527,667 Sales $ 741,520 $ 870,430
Schedule of impact of recently adopted pronouncements on our consolidated statement of operation and balance sheet	The cumulative effects of the changes made to our consolidated July 1, 2018 balance sheet for the adoption of the new revenue standard were as follows: Balance at Adjustment Balance at June 30, 2018 Upon Adoption July 1, 2018 Balance Sheet Accounts Payable $ 135,311 $ (12,900 ) $ 122,411 Refund Liability Owed to Customers - 12,900 12,900 The total impact of adoption on our consolidated statement of operation and balance sheet was as follows: As of and for the period ended September 30, 2018 Current Previous Standard Change Standard Balance Sheet Accounts Payable $ 294,706 $ 18,274 $ 312,980 Refund Liability Owed to Customers 18,274 (18,274 ) $ - Statement of Operations Sales $ 741,520 $ 19,802 $ 761,322 Selling Expenses 72,903 19,802 $ 92,705

Earnings (LOSS) PER SHARE (Tabl

Earnings (LOSS) PER SHARE (Tables)	3 Months Ended
	Sep. 30, 2018
Earnings Per Share [Abstract]
Schedule of earnings (loss) per share computed on weighted average of outstanding common shares	Three Months Ended September 30 2018 2017 Net Income (Loss) $ 1,292 $ (56,847 ) Preferred Dividend Requirements: 6% Prior Cumulative Preferred, $5 Par Value 15,000 15,000 5% Convertible Cumulative Preferred, $20 Par Value 17,018 17,018 Total Dividend Requirements 32,018 32,018 Net Loss - Common Stockholders $ (30,726 ) $ (88,865 ) Three Months Ended September 30 2018 2017 Weighted Average Shares - Basic 969,834 969,834 Dilutive Effect of Contingently Issuable Shares 1,033,334 1,033,334 Weighted Average Shares – Diluted 2,003,168 2,003,168 Basic Loss per Share $ (0.03 ) $ (0.09 ) Diluted Loss per Share $ (0.03 ) $ (0.09 )
Schedule of total dividends in arrears, on a per share basis	Three Months Ended September 30 2018 2017 6% Convertible Series A $ 18 $ 18 Series B $ 17 $ 17 5% Convertible Series A $ 69 $ 68 Series B $ 69 $ 68

NOTES PAYABLE AND LINE OF CRE_2

NOTES PAYABLE AND LINE OF CREDIT (Tables)	3 Months Ended
	Sep. 30, 2018
Notes Payable [Abstract]
Schedule of long-term debt	September 30, June 30, Payee Terms 2018 2018 Nodaway $350,000 line-of-credit agreement Valley Bank expiring on January 4, 2019, with a variable interest rate at prime but not less than 5%. The line-of-credit is collateralized by substantially all assets of the Company. Management anticipates renewal of the line-of-credit agreement at similar terms upon expiration. $ 310,000 $ - Ford Credit $705 monthly payments, interest of 5.8%; final payment due October 2021, secured by a vehicle. 23,810 25,560 Toyota Credit $364 monthly payments, interest of 3.5%; final payment due December 2020, secured by a vehicle. 9,447 10,451 Total 343,257 36,011 Less: Current Portion 321,365 11,224 Long-Term Portion $ 21,892 $ 24,787
Schedule of future minimum payments of long term debt	Twelve Months Ending September 30, Amount 2019 $ 321,365 2020 11,946 2021 9,245 2022 701 2023 - Total $ 343,257

SUPPLEMENTAL DISCLOSURES OF C_2

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION (Tables)	3 Months Ended
	Sep. 30, 2018
Supplemental Cash Flow Elements [Abstract]
Schedule of supplemental disclosures of cash flow information	Three Months Ended September 30 2018 2017 Cash Paid for: Interest $ 2,883 $ 1,978

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Nature Of Business And Significant Accounting Policies [Line Items]
Sales	$ 741,520	$ 870,430
Sales - Chase Candy
Nature Of Business And Significant Accounting Policies [Line Items]
Sales	294,447	342,763
Sales - Seasonal Candy
Nature Of Business And Significant Accounting Policies [Line Items]
Sales	$ 447,073	$ 527,667

SIGNIFICANT ACCOUNTING POLICI_5

SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($)	Sep. 30, 2018	Jul. 01, 2018	Jun. 30, 2018
Nature Of Business And Significant Accounting Policies [Line Items]
Accounts Payable	$ 294,706	$ 122,411	$ 176,871
Refund Liability Owed to Customers	$ 18,274	$ 12,900	12,900
Early adoption
Nature Of Business And Significant Accounting Policies [Line Items]
Accounts Payable			135,311
Refund Liability Owed to Customers			0
Adjustment Upon Adoption
Nature Of Business And Significant Accounting Policies [Line Items]
Accounts Payable			(12,900)
Refund Liability Owed to Customers			$ 12,900

SIGNIFICANT ACCOUNTING POLICI_6

SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($)	Sep. 30, 2018	Jul. 01, 2018	Jun. 30, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts Payable	$ 294,706	$ 122,411	$ 176,871
Refund Liability Owed to Customers	18,274	$ 12,900	$ 12,900
Change
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts Payable	18,274
Refund Liability Owed to Customers	(18,274)
Previous Standard
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts Payable	312,980
Refund Liability Owed to Customers	$ 0

SIGNIFICANT ACCOUNTING POLICI_7

SIGNIFICANT ACCOUNTING POLICIES (Details 3) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	$ 741,520	$ 870,430
Selling Expense	72,903	$ 112,332
Change
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	19,802
Selling Expense	19,802
Previous Standard
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Sales	761,322
Selling Expense	$ 92,705

SIGNIFICANT ACCOUNTING POLICI_8

SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals)	3 Months Ended
	Sep. 30, 2018Reportable_Segment
Nature Of Business And Significant Accounting Policies [Abstract]
Number of Reportable Segments	1

LOSS PER SHARE (Details)

LOSS PER SHARE (Details) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Class of Stock [Line Items]
Net Income (Loss)	$ 1,292	$ (56,847)
Preferred Dividend Requirements:
Total Dividend Requirements	32,018	32,018
Net Loss - Common Stockholders	$ (30,726)	$ (88,865)
Weighted Average Shares - Basic	969,834	969,834
Dilutive Effect of Contingently Issuable Shares	1,033,334	1,033,334
Weighted Average Shares - Diluted (in shares)	2,003,168	2,003,168
Basic Loss per Share (in dollars per share)	$ (0.03)	$ (0.09)
Diluted Loss per Share (in dollars per share)	$ (0.03)	$ (0.09)
6% Prior Cumulative Preferred, $5 Par Value
Preferred Dividend Requirements:
Total Dividend Requirements	$ 15,000	$ 15,000
5% Convertible Cumulative Preferred, $20 Par Value
Preferred Dividend Requirements:
Total Dividend Requirements	$ 17,018	$ 17,018

LOSS PER SHARE (Parentheticals)

LOSS PER SHARE (Parentheticals) (Details) - $ / shares	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
6% Prior Cumulative Preferred, $5 Par Value
Class of Stock [Line Items]
Stated percentage of preferred stock	6.00%	6.00%
Preferred stock, par value (in dollars per share)	$ 5	$ 5
5% Convertible Cumulative Preferred, $20 Par Value
Class of Stock [Line Items]
Stated percentage of preferred stock	5.00%	5.00%
Preferred stock, par value (in dollars per share)	$ 20	$ 20

LOSS PER SHARE (Details 1)

LOSS PER SHARE (Details 1) - $ / shares	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
6% Convertible | Series A
Class of Stock [Line Items]
Cumulative preferred stock dividends in arrears	$ 18	$ 18
6% Convertible | Series B
Class of Stock [Line Items]
Cumulative preferred stock dividends in arrears	17	17
5% Convertible | Series A
Class of Stock [Line Items]
Cumulative preferred stock dividends in arrears	69	68
5% Convertible | Series B
Class of Stock [Line Items]
Cumulative preferred stock dividends in arrears	$ 69	$ 68

LOSS PER SHARE (Detail Textuals

LOSS PER SHARE (Detail Textuals)	3 Months Ended
	Sep. 30, 2018USD ($)$ / shares	Sep. 30, 2017USD ($)$ / shares
Class of Stock [Line Items]
Total cumulative preferred stock dividends in arrears | $	$ 8,236,968	$ 8,108,896
6% convertible prior cumulative preferred stock
Class of Stock [Line Items]
Redemption price per share (in dollars per share)	$ 5.25	$ 5.25
Preferred stock, liquidation preference per share (in dollars per share)	$ 5.25	$ 5.25
6% convertible prior cumulative preferred stock | Series A
Class of Stock [Line Items]
Number of common stock exchanged for each preferred stock held	4	4
6% convertible prior cumulative preferred stock | Series B
Class of Stock [Line Items]
Number of common stock exchanged for each preferred stock held	3.75	3.75
5% convertible cumulative preferred stock
Class of Stock [Line Items]
Redemption price per share (in dollars per share)	$ 21	$ 21
Preferred stock, liquidation preference per share (in dollars per share)	$ 20	$ 20
Number of common stock exchanged for each preferred stock held	3.795	3.795

NOTES PAYABLE AND LINE OF CRE_3

NOTES PAYABLE AND LINE OF CREDIT - Long-term debt (Details) - USD ($)	Sep. 30, 2018	Jun. 30, 2018
Debt Instrument [Line Items]
Total	$ 343,257	$ 36,011
Less Current Portion	321,365	11,224
Long-Term Portion	21,892	24,787
Nodaway Valley Bank: $350,000 line-of-credit agreement expiring on January 4, 2019, with a variable interest rate at prime but not less than 5%. The line-of-credit is collateralized by substantially all assets of the Company. Management anticipates renewal of the line-of-credit agreement at similar terms upon expiration.
Debt Instrument [Line Items]
Total	310,000	0
Ford Credit: $705 monthly payments, interest of 5.8%; final payment due October 2021, secured by a vehicle.
Debt Instrument [Line Items]
Total	23,810	25,560
Toyota Credit: $364 monthly payments, interest of 3.5%; final payment due December 2020, secured by a vehicle
Debt Instrument [Line Items]
Total	$ 9,447	$ 10,451

NOTES PAYABLE AND LINE OF CRE_4

NOTES PAYABLE AND LINE OF CREDIT - Long-term debt (Parentheticals) (Details) - USD ($)	3 Months Ended	12 Months Ended
	Sep. 30, 2018	Jun. 30, 2018
Nodaway Valley Bank: $350,000 line-of-credit agreement expiring on January 4, 2019, with a variable interest rate at prime but not less than 5%. The line-of-credit is collateralized by substantially all assets of the Company. Management anticipates renewal of the line-of-credit agreement at similar terms upon expiration.
Debt Instrument [Line Items]
Line-of-credit agreement, amount	$ 350,000	$ 350,000
Interest rate, description	Variable interest rate at prime	Variable interest rate at prime
Line of Credit Facility, Expiration date	Jan. 4, 2019	Jan. 4, 2019
Line of credit facility, Basis for measurement	Prime	Prime
Basis Spread on Variable Rate	5.00%	5.00%
Ford Credit: $705 monthly payments, interest of 5.8%; final payment due October 2021, secured by a vehicle.
Debt Instrument [Line Items]
Notes payable, periodic payment	$ 705	$ 705
Notes payable, frequency	Monthly	Monthly
Interest rate	5.80%	5.80%
Maturity date	Oct. 31, 2021	Oct. 31, 2021
Toyota Credit: $364 monthly payments, interest of 3.5%; final payment due December 2020, secured by a vehicle
Debt Instrument [Line Items]
Notes payable, periodic payment	$ 364	$ 364
Notes payable, frequency	Monthly	monthly
Interest rate	3.50%	3.50%
Maturity date	Dec. 31, 2020	Dec. 31, 2020

NOTES PAYABLE AND LINE OF CRE_5

NOTES PAYABLE AND LINE OF CREDIT - Future minimum payments (Details 1) - USD ($)	Sep. 30, 2018	Jun. 30, 2018
Notes Payable [Abstract]
2,019	$ 321,365
2,020	11,946
2,021	9,245
2,022	701
2,023	0
Total	$ 343,257	$ 36,011

SUPPLEMENTAL DISCLOSURES OF C_3

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION (Details) - USD ($)	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash Paid for:
Interest	$ 2,883	$ 1,978