Chase General (CSGN) 10-K 30 Sep 19 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Jun. 30, 2019	Sep. 29, 2019	Dec. 31, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	CHASE GENERAL CORP
Entity Central Index Key	0000015357
Entity Voluntary Filers	No
Current Fiscal Year End Date	--06-30
Entity Filer Category	Non-accelerated Filer
Entity Well-known Seasoned Issuer	No
Entity Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding		969,834
Entity Public Float			$ 0
Document Type	10-K
Document Period End Date	Jun. 30, 2019
Amendment Flag	false
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Current Reporting Status	Yes

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2019	Jun. 30, 2018
CURRENT ASSETS
Cash and Cash Equivalents	$ 18,800	$ 2,129
Trade Receivables, Net of Allowance for Doubtful Accounts of $12,849 and $13,389, Respectively	137,869	135,331
Inventories:
Finished Goods	200,085	208,254
Goods in Process	12,999	10,937
Raw Materials	45,456	74,267
Packaging Materials	151,795	152,184
Prepaid Expenses	7,653	12,225
Total Current Assets	574,657	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	158,632	163,039
Office Equipment	33,025	33,025
Leasehold Improvements	72,068	72,068
Total	1,227,864	1,232,271
Less Accumulated Depreciation	1,016,764	997,091
Total Property and Equipment, Net	211,100	235,180
Total Assets	785,757	830,507
CURRENT LIABILITIES
Accounts Payable	78,549	176,871
Current Maturities of Notes Payable	97,133	11,224
Accrued Expenses	28,851	30,852
Refund Liability Owed to Customers	10,403
Deferred Income	1,299	1,299
Total Current Liabilities	216,235	220,246
LONG-TERM LIABILITIES
Notes Payable, Less Current Maturities	20,408	24,787
Deferred Income	6,168	7,466
Total Long-Term Liabilities	26,576	32,253
Total Liabilities	242,811	252,499
COMMITMENTS AND CONTINGENCIES (NOTE 8)
Capital Stock Issued and Outstanding:
Common Stock, $1 Par Value	969,834	969,834
Paid-In Capital in Excess of Par	3,134,722	3,134,722
Accumulated Deficit	(5,923,050)	(5,887,988)
Total Stockholders' Equity	542,946	578,008
Total Liabilities and Stockholders' Equity	785,757	830,507
Prior Cumulative Preferred Stock - Series A
Capital Stock Issued and Outstanding:
Preferred stock, value	500,000	500,000
Prior Cumulative Preferred Stock - Series B
Capital Stock Issued and Outstanding:
Preferred stock, value	500,000	500,000
Cumulative Preferred Stock - Series A
Capital Stock Issued and Outstanding:
Preferred stock, value	1,170,660	1,170,660
Cumulative Preferred Stock - Series B
Capital Stock Issued and Outstanding:
Preferred stock, value	$ 190,780	$ 190,780

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Allowance for doubtful accounts on trade receivables (in dollars)	$ 12,849	$ 13,389
Common stock, par value (in dollars per share)	$ 1	$ 1
Prior Cumulative Preferred
Preferred stock, par value (in dollars per share)	$ 5	$ 5
Prior Cumulative Preferred Stock - Series A
Preferred stock, liquidation preference (in dollars)	$ 2,340,000	$ 2,310,000
Prior Cumulative Preferred Stock - Series B
Preferred stock, liquidation preference (in dollars)	$ 2,295,000	$ 2,265,000
Convertible Cumulative Preferred
Preferred stock, par value (in dollars per share)	$ 20	$ 20
Cumulative Preferred Stock - Series A
Preferred stock, liquidation preference (in dollars)	$ 5,253,329	$ 5,194,796
Cumulative Preferred Stock - Series B
Preferred stock, liquidation preference (in dollars)	$ 856,133	$ 846,594

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
CONSOLIDATED STATEMENTS OF OPERATIONS
SALES	$ 2,520,633	$ 2,680,236
COST OF SALES	1,873,249	2,085,405
Gross Profit on Sales	647,384	594,831
OPERATING EXPENSES
Selling Expenses	284,410	389,373
General and Administrative Expenses	410,999	470,092
(Gain)/Loss on Sale of Equipment	(14,841)	3,339
Total Operating Expenses	680,568	862,804
Loss from Operations	(33,184)	(267,973)
OTHER INCOME (EXPENSE)
Miscellaneous Income	4,832	2,051
Interest Expense	(6,710)	(5,341)
Total Other Expense	(1,878)	(3,290)
Loss before Income Taxes	(35,062)	(271,263)
INCOME TAXES BENEFIT	0	(26,022)
NET LOSS	$ (35,062)	$ (245,241)
NET LOSS PER SHARE OF COMMON STOCK
BASIC	$ (0.17)	$ (0.38)
DILUTED	$ (0.17)	$ (0.38)

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)	Prior Cumulative Preferred Stock - Series APreferred Stock	Prior Cumulative Preferred Stock - Series BPreferred Stock	Cumulative Preferred Stock - Series APreferred Stock	Cumulative Preferred Stock - Series BPreferred Stock	Common Stock	Paid-In Capital	Accumulated Deficit	Total
BALANCE at Jun. 30, 2017	$ 500,000	$ 500,000	$ 1,170,660	$ 190,780	$ 969,834	$ 3,134,722	$ (5,642,747)	$ 823,249
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Loss							(245,241)	(245,241)
BALANCE at Jun. 30, 2018	500,000	500,000	1,170,660	190,780	969,834	3,134,722	(5,887,988)	578,008
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Loss							(35,062)	(35,062)
BALANCE at Jun. 30, 2019	$ 500,000	$ 500,000	$ 1,170,660	$ 190,780	$ 969,834	$ 3,134,722	$ (5,923,050)	$ 542,946

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Collections from Customers	$ 2,518,095	$ 2,672,112
Cost of Sales, Selling, General and Administrative Expenses Paid	(2,560,469)	(2,652,853)
Interest Paid	(6,710)	(5,341)
Net Cash Provided (Used) by Operating Activities	(49,084)	13,918
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from Sale of Property and Equipment		34,000
Purchases of Property and Equipment	(1,310)	(72,585)
Net Cash Used by Investing Activities	(1,310)	(38,585)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Line-of-Credit	425,000	330,000
Principal Payments on Line-of-Credit	(340,000)	(330,000)
Principal Payments on Notes Payable	(17,935)	(19,386)
Net Cash Provided (Used) by Financing Activities	67,065	(19,386)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	16,671	(44,053)
Cash and Cash Equivalents, Beginning of Year	2,129	46,182
CASH AND CASH EQUIVALENTS, END OF YEAR	18,800	2,129
RECONCILIATION OF NET LOSS TO NET CASH PROVIDED BY OPERATING ACTIVITIES
Net Loss	(35,062)	(245,241)
Adjustments to Reconcile Net Loss to Net Cash Provided by Operating Activities:
Depreciation and Amortization	54,696	65,204
Allowance for Bad Debts	(540)	(2,916)
Deferred Income Amortization	(1,298)	(1,299)
Deferred Income Taxes		27,163
(Gain)/Loss on Sale of Equipment	(14,841)	3,339
Effects of Changes in Operating Assets and Liabilities:
Trade Receivables	(1,998)	(5,208)
Inventories	35,307	34,396
Prepaid Expenses	4,572	12,464
Income Taxes Receivable		11,160
Accounts Payable	(98,322)	113,243
Refund Liability Owed to Customers	10,403
Accrued Expenses	(2,001)	1,613
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES	$ (49,084)	$ 13,918

NATURE OF BUSINESS AND SIGNIFIC

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Jun. 30, 2019
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES Nature of Business Chase General Corporation (the Company) was incorporated on November 6, 1944 in the state of Missouri for the purpose of manufacturing confectionery products. The Company grants credit terms to substantially all customers, consisting of repackers, grocery accounts, and national syndicate accounts, who are primarily located in the Midwest region of the United States. Significant accounting policies are as follows: Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Dye Candy Company. All intercompany transactions and balances have been eliminated in consolidation. Segment Reporting of the Business The subsidiary, Dye Candy 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. The products of both divisions are sold to the same type of customers in the same geographical areas. In addition, 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 in these consolidated financial statements. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all liquid investments with a maturity of three months or less when purchased to be cash equivalents. Shipping and Handling Costs Shipping and handling costs for freight expense on goods shipped are included in cost of sales. Freight expense on goods shipped for the years ended June 30, 2019 and 2018 was $147,635 and $155,421, respectively. Trade Receivables Trade receivables are uncollateralized customer obligations which generally require payment within thirty days from the invoice date. Trade receivables are stated at the invoice amount as no interest is charged to the customer for any past due amounts. Payments of trade receivables are applied to the specific invoices identified on the customer’s remittance advice or, if unspecified, to the earliest unpaid invoices. The carrying amount of trade receivables is reduced by a valuation allowance that reflects management’s best estimate of amounts that will not be collected. The allowance for doubtful accounts is based on management’s assessment of the collectability of specific customer accounts and the aging of the trade receivables. If there is a deterioration of a major customer’s credit worthiness or actual defaults are higher than the historical experience, management’s estimates of the recoverability of amounts due to the Company could be adversely affected. All accounts or portions thereof deemed to be uncollectible, or that require an excessive collection cost, are written off to the allowance for doubtful accounts. Inventories Inventories are carried at the “lower of cost or net realizable value,” with cost being determined on the “first-in, first-out” basis of accounting. The cost of goods in process include an estimate for manufacturing overhead. Finished goods inventory are valued using the lower of cost or market value, determined by the retail inventory method. Under the retail inventory method, the valuation of finished goods inventory at cost and the resulting gross margins are calculated by applying a cost-to-retail ratio to the retail value of inventories. Property and Equipment The Company’s property and equipment is recorded at cost and is being depreciated on straight-line and accelerated methods over the following estimated useful lives: Buildings 39 years Machinery and equipment 5 – 7 years Trucks and autos 5 years Office equipment 5 – 7 years Leasehold improvements Lesser of estimated useful life or the lease term Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceed the fair value of the assets. Income Taxes Deferred income taxes are provided using the liability method for temporary differences between financial statement and income tax reporting. Temporary differences are differences between the amounts of assets and liabilities reported for financial statement purposes and their tax bases. Deferred income tax assets are recognized for temporary differences that will be deductible in future years’ tax returns and for operating loss and tax credit carryforwards. Deferred income tax assets are only recognized if it is more likely than not that a tax position will be realized or sustained upon examination by the relevant taxing authority. Deferred income tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some or all of the deferred income tax assets will not be realized. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement with a taxing authority that has full knowledge of relevant information. Deferred income tax liabilities are recognized for temporary differences that will be taxable in future years’ tax returns. Deferred income tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the dates of enactment. Based on the facts, the Company has determined it necessary to reduce their deferred income tax asset with a valuation allowance due it being more likely than not that the Company will be able to realize all of the deferred income tax asset. The Company’s policy is to evaluate uncertain tax positions under the guidance as prescribed by Accounting Standards Codification (ASC) 740, Income Taxes . As of June 30, 2019 and 2018, the Company has not identified any uncertain tax positions requiring recognition in the consolidated financial statements. The Company had no accruals for interest or penalties as of June 30, 2019 and 2018. Earnings Per Common Share Basic earnings per common share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share shall be computed by including contingently issuable shares with the weighted average shares outstanding during the period. When inclusion of the contingently issuable shares would have an antidilutive effect upon earnings per share, diluted earnings per share will be calculated in the same manner as basic earnings per share. The following table details out the contingently issuable shares for the years ended June 30, 2019 and 2018. For 2019 and 2018, the contingently issuable shares were not included in diluted earnings per common share as they would have an antidilutive effect upon earnings per share. 2019 2018 Shares Issuable Upon Conversion of Series A Prior Cumulative Preferred Stock 400,000 400,000 Shares Issuable Upon Conversion of Series B Prior Cumulative Preferred Stock 375,000 375,000 Shares Issuable Upon Conversion of Series A Cumulative Preferred Stock 222,133 222,133 Shares Issuable Upon Conversion of Series B Cumulative Preferred Stock 36,201 36,201 Total Dilutive Effect of Contingently Issuable Shares 1,033,334 1,033,334 Advertising Expense Advertising is expensed when incurred. Advertising expense was $15,603 and $14,779 for the years ended June 30, 2019 and 2018, respectively. Going Concern The Company follows ASU No. 2014‑15, “Presentation of Financial Statements – Going Concern (Subtopic 205‑40)”. ASU 2014‑15 provides guidance related to management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosure for the year ended June 30, 2019. Management determined that, when considered in the aggregate, the current conditions and events do not raise substantial doubt about the Company’s ability to continue as a going concern for at least one year after the date the consolidated financial statements are available for issuance. 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 the third 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 year ended June 30, 2019 2018 Sales - Chase Candy $ 1,408,187 $ 1,481,267 Sales - Seasonal Candy 1,112,446 1,198,969 Sales $ 2,520,633 $ 2,680,236 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 are separately recorded as a current liability upon adoption of ASC 606. There was 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 year ended June 30, 2019 Current Previous Standard Change Standard Balance Sheet Accounts Payable $ 78,549 $ 10,403 $ 88,952 Refund Liability Owed to Customers 10,403 (10,403) — Statement of Operations Sales $ 2,520,633 $ 66,978 $ 2,587,611 Selling Expenses 284,410 66,978 351,388 Recently Issued Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases, (“ASC 842”) which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. The new standard establishes a right-of-use model (“ROU”) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The new standard is effective for the Company on July 1, 2019, with early adoption permitted. The Company plans to adopt the guidance on July 1, 2019, using a modified retrospective transition approach with the cumulative effect recognized at the date of initial application, whereby comparative prior period financial information and disclosures will not be adjusted to reflect the new standard. In January 2018, the FASB issued ASU No. 2018-01, Leases, which permits an entity to elect an optional transition practical expedient to not evaluate under ASU 842 land easements that exist or expired before the entity’s adoption of ASC 842 and that were not previously accounted for as leases. The Company expects that this standard will have a material effect on its consolidated financial statements. While the Company is continuing to assess the effect of adoption, the Company currently believes the most significant changes relate to the recognition of new ROU assets and lease liabilities on its balance sheet for a building currently subject to operating leases and providing new disclosures about the Company’s leasing activities. On July 1, 2019, the Company expects to recognize additional operating liabilities of approximately $376,000, with corresponding ROU assets of the same amount based on the present value of the remaining minimum rental payments for the Company’s existing operating leases. The Company has not finalized the effects of these expected changes from the new standard and expects that this estimated range of impact will narrow as the Company continues its assessment of the adoption of ASC 842. The Company does not expect a significant change in its leasing activity between now and adoption. 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.

FORGIVABLE LOAN AND DEFERRED IN

FORGIVABLE LOAN AND DEFERRED INCOME	12 Months Ended
	Jun. 30, 2019
FORGIVABLE LOAN AND DEFERRED INCOME
FORGIVABLE LOAN AND DEFERRED INCOME	NOTE 2 FORGIVABLE LOAN AND DEFERRED INCOME During 2004, the Company received a $25,000 economic development incentive from Buchanan County, which is a five year forgivable loan at a rate of $5,000 per year. The Nodaway Valley Bank established an Irrevocable Standby Letter of Credit in the amount of $25,000 as collateral for this loan, with a maturity date of January 3, 2010. The Company met the criteria of occupying a 20,000 square foot building and creating a minimum of two new full-time equivalent jobs during the first year of operation in the new facility. In addition, the Company maintained 19 existing jobs during the five year term. Notice was received February 6, 2009 from the Buchanan County Commission, that the Company had fulfilled its minimum loan requirements so that the loan was forgiven in full and has no further obligations. Since the Company was no longer legally required to return the monies, the liability was reclassified as deferred revenue and amortized into income over the life of the lease term of the new facility. Deferred revenue is recognized on a straight line basis over the lease term of 20 years. During the years ended June 30, 2019 and 2018, deferred revenue of $1,298 and $1,299, respectively, was amortized into income.

NOTES PAYABLE

NOTES PAYABLE	12 Months Ended
	Jun. 30, 2019
NOTES PAYABLE
NOTES PAYABLE	NOTE 3 NOTES PAYABLE The Company’s long-term debt at June 30, 2019 and 2018 consists of: Payee Terms 2019 2018 Nodaway Valley Bank $350,000 line-of-credit agreement expiring on January 4, 2020, 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. $ 85,000 $ — Ford Credit $705 monthly payments, interest of 5.8%; final payment due October 2021, secured by a vehicle. 18,407 25,560 Toyota Credit $364 monthly payments, interest of 3.5%; final payment due December 2020, secured by a vehicle. — 10,451 Toyota Credit $444 monthly payments, interest of 6.49%; final payment due May 2022, secured by a vehicle. 14,134 — Total 117,541 36,011 Less current portion 97,133 11,224 Long-term portion $ 20,408 $ 24,787 Future minimum payments for the years ended June 30 are: Year Ended June 30, Amount 2020 $ 97,133 2021 12,893 2022 7,515 Total $ 117,541

CAPITAL STOCK

CAPITAL STOCK	12 Months Ended
	Jun. 30, 2019
CAPITAL STOCK
CAPITAL STOCK	NOTE 4 CAPITAL STOCK Capital stock authorized, issued, and outstanding as of June 30, 2019 is as follows: Shares Issued and Authorized Outstanding Prior Cumulative Preferred Stock, $5 Par Value: 6% Convertible 240,000 Series A 100,000 Series B 100,000 Cumulative Preferred Stock, $20 Par Value: 5% Convertible 150,000 Series A 58,533 Series B 9,539 Common Stock, $1 Par Value: Reserved for Conversion of Preferred Stock - 1,030,166 shares 2,000,000 969,834 Cumulative Preferred Stock dividends in arrears at June 30, 2019 and 2018 totaled $8,333,022 and $8,204,950, respectively. Total dividends in arrears, on a per share basis, consist of the following at June 30, 2019 and 2018: 2019 2018 6% Convertible Series A $ 18.15 $ 17.85 Series B $ 17.70 $ 17.40 5% Convertible Series A $ 69.75 $ 68.75 Series B $ 69.75 $ 68.75 The 6% convertible prior cumulative preferred stock may, upon thirty 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. Cumulative preferred stock may be exchanged for common stock at the option of the shareholders in the ratio of 4 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.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Jun. 30, 2019
INCOME TAXES
INCOME TAXES	NOTE 5 INCOME TAXES Management believes the income tax positions taken for open years are appropriately stated and supported for all open years. The Company’s federal tax returns for the years ended June 30, 2018, 2017, and 2016 are subject to examination by the IRS taxing authority. The sources of deferred income tax assets and liability at June 30, 2019 and 2018 are as follows: 2019 2018 Deferred Income Tax Assets: Net Operating Loss Carryover $ 66,741 $ 66,580 Valuation Allowance on Net Operating Loss (39,682) (29,460) Trade Receivables 3,333 3,473 Deferred Income 1,937 2,273 Contribution Carryover 1,297 830 Inventories — 540 Total Deferred Income Tax Assets 33,626 44,236 Deferred Income Tax Liability: Property and Equipment (33,626) (44,236) NET DEFERRED INCOME TAX ASSET $ — $ — The net deferred income tax asset is presented in the accompanying June 30, 2019 and 2018 consolidated balance sheets as follows: 2019 2018 Deferred Income Tax Asset $ — $ — The benefit for income taxes for the years ended June 30, 2019 and 2018 consists of the following: 2019 2018 Current Income Tax $ — $ — Change in Deferred Taxes Due to Enacted Changes in Tax Law — (19,369) Deferred Income Tax Credit — (6,653) Total $ — $ (26,022) The income tax provision differs from the amount of income tax determined by applying the statutory federal income tax rate to pretax loss for the years ended June 30, 2019 and 2018 due to the following: 2019 2018 Computed at Federal Statutory Rates $ (7,363) $ (55,176) Increase (Decrease) in Income Taxes Resulting from: Non-Deductible Expenses 138 3,288 Change in Deferred Taxes Due to Enacted Changes in Tax Law — (19,369) Adjustment of Deferred Tax Balances — 15,857 Changes in Judgment on Realizability of Deferred Tax Assets 7,225 24,207 State Income Taxes — 5,171 Total $ — $ (26,022) On December 22, 2017, the President signed into law The Tax Cuts and Jobs Act (the Act), which enacts significant changes to U.S. income tax and related laws. Among other things, the Act reduces the top U.S. corporate income tax rate from 35.0% to 21.0% effective January 1, 2018, and makes changes to certain other business-related exclusions, deductions, and credits. Because a change in tax law is accounted for in the period of enactment, the effect of the Act was recorded in the Company’s fiscal second quarter ending December 31, 2017 which caused a net provision adjustment to deferred income taxes of $19,369 for the year ended June 30, 2018. The Company has available at June 30, 2019, $256,075 of unused operating loss that may be carried forward and applied against future taxable income. Of the net operating loss carryforward, $16,460 expires on June 30, 2038, the remaining balance does not expire.

LOSS PER SHARE

LOSS PER SHARE	12 Months Ended
	Jun. 30, 2019
LOSS PER SHARE
LOSS PER SHARE	NOTE 6 LOSS PER SHARE The loss per share for the years ended June 30, 2019 and 2018, respectively, was computed on the weighted average of outstanding common shares during the year as follows: 2019 2018 Net Loss $ (35,062) $ (245,241) Preferred Dividend Requirements: 6% Prior Cumulative Preferred, $5 Par Value 60,000 60,000 5% Convertible Cumulative Preferred, $20 Par Value 68,072 68,072 Total Dividend Requirements 128,072 128,072 Net Loss - Common Stockholders $ (163,134) $ (373,313) 2019 2018 Weighted Average of 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 $ (0.17) $ (0.38) Diluted Loss per Share $ (0.17) $ (0.38)

SUPPLEMENTAL DISCLOSURES OF CAS

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION	12 Months Ended
	Jun. 30, 2019
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION	NOTE 7 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION 2019 2018 Cash Paid for: Interest $ 6,710 $ 5,341 Non-Cash Transactions: Financing of New Vehicles $ 14,465 $ —

COMMITMENTS, CONTINGENCIES AND

COMMITMENTS, CONTINGENCIES AND RELATED PARTY TRANSACTIONS	12 Months Ended
	Jun. 30, 2019
COMMITMENTS, CONTINGENCIES AND RELATED PARTY TRANSACTIONS
COMMITMENTS, CONTINGENCIES AND RELATED PARTY TRANSACTIONS	NOTE 8 COMMITMENTS, CONTINGENCIES AND RELATED PARTY TRANSACTIONS Dye Candy Company leases its office and manufacturing facility, located at 1307 South 59 th , St. Joseph, Missouri, from an entity that is partially owned by the son of the Chief Executive Officer of the Company. The lease term is from February 1, 2005 through March 31, 2025, with an option to extend for an additional term of five years, and currently requires payments of $6,500 per month. At the end of the first five years, the base rent may be increased an amount not greater than 30%, at the sole discretion of lessor and for each additional term of five years. Rental expense was $78,000 for each year ended June 30, 2019 and 2018. The amounts are included in cost of sales. Future minimum lease payments under this lease are as follows: Year Ending June 30, Amount 2020 $ 78,000 2021 78,000 2022 78,000 2023 78,000 2024 78,000 Thereafter 58,500 $ 448,500 As of June 30, 2019, the Company had raw materials purchase commitments with five vendors totaling approximately $216,900.

DISCLOSURES ABOUT FAIR VALUE OF

DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS	12 Months Ended
	Jun. 30, 2019
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE 9 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 June 30, 2019, 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.

CONCENTRATION OF CREDIT RISK

CONCENTRATION OF CREDIT RISK	12 Months Ended
	Jun. 30, 2019
CONCENTRATION OF CREDIT RISK
CONCENTRATION OF CREDIT RISK	NOTE 10 CONCENTRATION OF CREDIT RISK For the years ended June 30, 2019 and 2018, two customers accounted for 53% and 54%, respectively, of the sales. As of June 30, 2019 and 2018, three customers accounted for 52% and four customers accounted for 63%, respectively, of trade receivables.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Jun. 30, 2019
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 11 SUBSEQUENT EVENTS The Company monitors significant events occurring after June 30, 2019 and prior to the issuance of the financial statements to determine the impact, if any, of the events on the financial statements to be issued. All subsequent events of which the Company is aware were evaluated through the filing date of this Form 10‑K.

NATURE OF BUSINESS AND SIGNIF_2

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Jun. 30, 2019
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Dye Candy Company. All intercompany transactions and balances have been eliminated in consolidation.
Segment Reporting of the Business	Segment Reporting of the Business The subsidiary, Dye Candy 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. The products of both divisions are sold to the same type of customers in the same geographical areas. In addition, 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 in these consolidated financial statements.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all liquid investments with a maturity of three months or less when purchased to be cash equivalents.
Shipping and Handling Costs	Shipping and Handling Costs Shipping and handling costs for freight expense on goods shipped are included in cost of sales. Freight expense on goods shipped for the years ended June 30, 2019 and 2018 was $147,635 and $155,421, respectively.
Trade Receivables	Trade Receivables Trade receivables are uncollateralized customer obligations which generally require payment within thirty days from the invoice date. Trade receivables are stated at the invoice amount as no interest is charged to the customer for any past due amounts. Payments of trade receivables are applied to the specific invoices identified on the customer’s remittance advice or, if unspecified, to the earliest unpaid invoices. The carrying amount of trade receivables is reduced by a valuation allowance that reflects management’s best estimate of amounts that will not be collected. The allowance for doubtful accounts is based on management’s assessment of the collectability of specific customer accounts and the aging of the trade receivables. If there is a deterioration of a major customer’s credit worthiness or actual defaults are higher than the historical experience, management’s estimates of the recoverability of amounts due to the Company could be adversely affected. All accounts or portions thereof deemed to be uncollectible, or that require an excessive collection cost, are written off to the allowance for doubtful accounts.
Inventories	Inventories Inventories are carried at the “lower of cost or net realizable value,” with cost being determined on the “first-in, first-out” basis of accounting. The cost of goods in process include an estimate for manufacturing overhead. Finished goods inventory are valued using the lower of cost or market value, determined by the retail inventory method. Under the retail inventory method, the valuation of finished goods inventory at cost and the resulting gross margins are calculated by applying a cost-to-retail ratio to the retail value of inventories.
Property and Equipment	Property and Equipment The Company’s property and equipment is recorded at cost and is being depreciated on straight-line and accelerated methods over the following estimated useful lives: Buildings 39 years Machinery and equipment 5 – 7 years Trucks and autos 5 years Office equipment 5 – 7 years Leasehold improvements Lesser of estimated useful life or the lease term
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceed the fair value of the assets.
Income Taxes	Income Taxes Deferred income taxes are provided using the liability method for temporary differences between financial statement and income tax reporting. Temporary differences are differences between the amounts of assets and liabilities reported for financial statement purposes and their tax bases. Deferred income tax assets are recognized for temporary differences that will be deductible in future years’ tax returns and for operating loss and tax credit carryforwards. Deferred income tax assets are only recognized if it is more likely than not that a tax position will be realized or sustained upon examination by the relevant taxing authority. Deferred income tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some or all of the deferred income tax assets will not be realized. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement with a taxing authority that has full knowledge of relevant information. Deferred income tax liabilities are recognized for temporary differences that will be taxable in future years’ tax returns. Deferred income tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the dates of enactment. Based on the facts, the Company has determined it necessary to reduce their deferred income tax asset with a valuation allowance due it being more likely than not that the Company will be able to realize all of the deferred income tax asset. The Company’s policy is to evaluate uncertain tax positions under the guidance as prescribed by Accounting Standards Codification (ASC) 740, Income Taxes . As of June 30, 2019 and 2018, the Company has not identified any uncertain tax positions requiring recognition in the consolidated financial statements. The Company had no accruals for interest or penalties as of June 30, 2019 and 2018.
Earnings Per Common Share	Earnings Per Common Share Basic earnings per common share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share shall be computed by including contingently issuable shares with the weighted average shares outstanding during the period. When inclusion of the contingently issuable shares would have an antidilutive effect upon earnings per share, diluted earnings per share will be calculated in the same manner as basic earnings per share. The following table details out the contingently issuable shares for the years ended June 30, 2019 and 2018. For 2019 and 2018, the contingently issuable shares were not included in diluted earnings per common share as they would have an antidilutive effect upon earnings per share. 2019 2018 Shares Issuable Upon Conversion of Series A Prior Cumulative Preferred Stock 400,000 400,000 Shares Issuable Upon Conversion of Series B Prior Cumulative Preferred Stock 375,000 375,000 Shares Issuable Upon Conversion of Series A Cumulative Preferred Stock 222,133 222,133 Shares Issuable Upon Conversion of Series B Cumulative Preferred Stock 36,201 36,201 Total Dilutive Effect of Contingently Issuable Shares 1,033,334 1,033,334
Advertising Expense	Advertising Expense Advertising is expensed when incurred. Advertising expense was $15,603 and $14,779 for the years ended June 30, 2019 and 2018, respectively.
Going Concern	Going Concern The Company follows ASU No. 2014‑15, “Presentation of Financial Statements – Going Concern (Subtopic 205‑40)”. ASU 2014‑15 provides guidance related to management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosure for the year ended June 30, 2019. Management determined that, when considered in the aggregate, the current conditions and events do not raise substantial doubt about the Company’s ability to continue as a going concern for at least one year after the date the consolidated financial statements are available for issuance.
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 the third 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 year ended June 30, 2019 2018 Sales - Chase Candy $ 1,408,187 $ 1,481,267 Sales - Seasonal Candy 1,112,446 1,198,969 Sales $ 2,520,633 $ 2,680,236
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 are separately recorded as a current liability upon adoption of ASC 606. There was 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 year ended June 30, 2019 Current Previous Standard Change Standard Balance Sheet Accounts Payable $ 78,549 $ 10,403 $ 88,952 Refund Liability Owed to Customers 10,403 (10,403) — Statement of Operations Sales $ 2,520,633 $ 66,978 $ 2,587,611 Selling Expenses 284,410 66,978 351,388 Recently Issued Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases, (“ASC 842”) which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. The new standard establishes a right-of-use model (“ROU”) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The new standard is effective for the Company on July 1, 2019, with early adoption permitted. The Company plans to adopt the guidance on July 1, 2019, using a modified retrospective transition approach with the cumulative effect recognized at the date of initial application, whereby comparative prior period financial information and disclosures will not be adjusted to reflect the new standard. In January 2018, the FASB issued ASU No. 2018-01, Leases, which permits an entity to elect an optional transition practical expedient to not evaluate under ASU 842 land easements that exist or expired before the entity’s adoption of ASC 842 and that were not previously accounted for as leases. The Company expects that this standard will have a material effect on its consolidated financial statements. While the Company is continuing to assess the effect of adoption, the Company currently believes the most significant changes relate to the recognition of new ROU assets and lease liabilities on its balance sheet for a building currently subject to operating leases and providing new disclosures about the Company’s leasing activities. On July 1, 2019, the Company expects to recognize additional operating liabilities of approximately $376,000, with corresponding ROU assets of the same amount based on the present value of the remaining minimum rental payments for the Company’s existing operating leases. The Company has not finalized the effects of these expected changes from the new standard and expects that this estimated range of impact will narrow as the Company continues its assessment of the adoption of ASC 842. The Company does not expect a significant change in its leasing activity between now and adoption. 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.

NATURE OF BUSINESS AND SIGNIF_3

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Jun. 30, 2019
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES
Schedule of property plant and equipment depreciated over the estimated useful life	Buildings 39 years Machinery and equipment 5 – 7 years Trucks and autos 5 years Office equipment 5 – 7 years Leasehold improvements Lesser of estimated useful life or the lease term
Schedule of antidilutive shares excluded from computation of earnings per share	2019 2018 Shares Issuable Upon Conversion of Series A Prior Cumulative Preferred Stock 400,000 400,000 Shares Issuable Upon Conversion of Series B Prior Cumulative Preferred Stock 375,000 375,000 Shares Issuable Upon Conversion of Series A Cumulative Preferred Stock 222,133 222,133 Shares Issuable Upon Conversion of Series B Cumulative Preferred Stock 36,201 36,201 Total Dilutive Effect of Contingently Issuable Shares 1,033,334 1,033,334
Schedule of divisions of revenue	For the year ended June 30, 2019 2018 Sales - Chase Candy $ 1,408,187 $ 1,481,267 Sales - Seasonal Candy 1,112,446 1,198,969 Sales $ 2,520,633 $ 2,680,236
Schedule of impact of recently adopted pronouncements on our consolidated statement of operation and balance sheet	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 As of and for the year ended June 30, 2019 Current Previous Standard Change Standard Balance Sheet Accounts Payable $ 78,549 $ 10,403 $ 88,952 Refund Liability Owed to Customers 10,403 (10,403) — Statement of Operations Sales $ 2,520,633 $ 66,978 $ 2,587,611 Selling Expenses 284,410 66,978 351,388

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	12 Months Ended
	Jun. 30, 2019
NOTES PAYABLE
Schedule of long-term debt	Payee Terms 2019 2018 Nodaway Valley Bank $350,000 line-of-credit agreement expiring on January 4, 2020, 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. $ 85,000 $ — Ford Credit $705 monthly payments, interest of 5.8%; final payment due October 2021, secured by a vehicle. 18,407 25,560 Toyota Credit $364 monthly payments, interest of 3.5%; final payment due December 2020, secured by a vehicle. — 10,451 Toyota Credit $444 monthly payments, interest of 6.49%; final payment due May 2022, secured by a vehicle. 14,134 — Total 117,541 36,011 Less current portion 97,133 11,224 Long-term portion $ 20,408 $ 24,787
Schedule of future minimum payments of long term debt	Year Ended June 30, Amount 2020 $ 97,133 2021 12,893 2022 7,515 Total $ 117,541

CAPITAL STOCK (Tables)

CAPITAL STOCK (Tables)	12 Months Ended
	Jun. 30, 2019
CAPITAL STOCK
Schedule of capital stock authorized, issued, and outstanding	Shares Issued and Authorized Outstanding Prior Cumulative Preferred Stock, $5 Par Value: 6% Convertible 240,000 Series A 100,000 Series B 100,000 Cumulative Preferred Stock, $20 Par Value: 5% Convertible 150,000 Series A 58,533 Series B 9,539 Common Stock, $1 Par Value: Reserved for Conversion of Preferred Stock - 1,030,166 shares 2,000,000 969,834
Schedule of preferred stock dividends in arrears on a per share basis	2019 2018 6% Convertible Series A $ 18.15 $ 17.85 Series B $ 17.70 $ 17.40 5% Convertible Series A $ 69.75 $ 68.75 Series B $ 69.75 $ 68.75

INCOME TAX (Tables)

INCOME TAX (Tables)	12 Months Ended
	Jun. 30, 2019
INCOME TAXES
Schedule of sources of deferred tax assets and liability	2019 2018 Deferred Income Tax Assets: Net Operating Loss Carryover $ 66,741 $ 66,580 Valuation Allowance on Net Operating Loss (39,682) (29,460) Trade Receivables 3,333 3,473 Deferred Income 1,937 2,273 Contribution Carryover 1,297 830 Inventories — 540 Total Deferred Income Tax Assets 33,626 44,236 Deferred Income Tax Liability: Property and Equipment (33,626) (44,236) NET DEFERRED INCOME TAX ASSET $ — $ —
Schedule of net deferred income tax asset (liability)	2019 2018 Deferred Income Tax Asset $ — $ —
Schedule of provision (benefit) for income taxes	2019 2018 Current Income Tax $ — $ — Change in Deferred Taxes Due to Enacted Changes in Tax Law — (19,369) Deferred Income Tax Credit — (6,653) Total $ — $ (26,022)
Schedule of effective income tax rate reconciliation	2019 2018 Computed at Federal Statutory Rates $ (7,363) $ (55,176) Increase (Decrease) in Income Taxes Resulting from: Non-Deductible Expenses 138 3,288 Change in Deferred Taxes Due to Enacted Changes in Tax Law — (19,369) Adjustment of Deferred Tax Balances — 15,857 Changes in Judgment on Realizability of Deferred Tax Assets 7,225 24,207 State Income Taxes — 5,171 Total $ — $ (26,022)

LOSS PER SHARE (Tables)

LOSS PER SHARE (Tables)	12 Months Ended
	Jun. 30, 2019
LOSS PER SHARE
Schedule of income per share computed on the weighted average of outstanding common shares	2019 2018 Net Loss $ (35,062) $ (245,241) Preferred Dividend Requirements: 6% Prior Cumulative Preferred, $5 Par Value 60,000 60,000 5% Convertible Cumulative Preferred, $20 Par Value 68,072 68,072 Total Dividend Requirements 128,072 128,072 Net Loss - Common Stockholders $ (163,134) $ (373,313) 2019 2018 Weighted Average of 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 $ (0.17) $ (0.38) Diluted Loss per Share $ (0.17) $ (0.38)

SUPPLEMENTAL DISCLOSURES OF C_2

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION (Tables)	12 Months Ended
	Jun. 30, 2019
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Schedule of supplemental disclosures of cash flow information	2019 2018 Cash Paid for: Interest $ 6,710 $ 5,341 Non-Cash Transactions: Financing of New Vehicles $ 14,465 $ —

COMMITMENTS, CONTINGENCIES AN_2

COMMITMENTS, CONTINGENCIES AND RELATED PARTY TRANSACTIONS (Tables)	12 Months Ended
	Jun. 30, 2019
COMMITMENTS, CONTINGENCIES AND RELATED PARTY TRANSACTIONS
Schedule of future minimum lease payments	Year Ending June 30, Amount 2020 $ 78,000 2021 78,000 2022 78,000 2023 78,000 2024 78,000 Thereafter 58,500 $ 448,500

NATURE OF BUSINESS AND SIGNIF_4

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Estimated useful lives (Details)	12 Months Ended
	Jun. 30, 2019
Buildings
Property, Plant and Equipment [Line Items]
Estimated useful lives	39 years
Machinery and equipment | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives	7 years
Machinery and equipment | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives	5 years
Trucks and autos
Property, Plant and Equipment [Line Items]
Estimated useful lives	5 years
Office equipment | Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives	7 years
Office equipment | Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives	5 years
Leasehold improvements
Property, Plant and Equipment [Line Items]
Estimated useful lives	Lesser of estimated useful life or the useful life or the lease term lease term

NATURE OF BUSINESS AND SIGNIF_5

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Antidilutive effect of contingently issuable shares (Details) - shares	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares Issuable Upon Conversion of Cumulative Preferred Stock	1,033,334	1,033,334
Prior Cumulative Preferred Stock - Series A
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares Issuable Upon Conversion of Cumulative Preferred Stock	400,000	400,000
Prior Cumulative Preferred Stock - Series B
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares Issuable Upon Conversion of Cumulative Preferred Stock	375,000	375,000
Cumulative Preferred Stock - Series A
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares Issuable Upon Conversion of Cumulative Preferred Stock	222,133	222,133
Cumulative Preferred Stock - Series B
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares Issuable Upon Conversion of Cumulative Preferred Stock	36,201	36,201

NATURE OF BUSINESS AND SIGNIF_6

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Divisions of Revenue (Details) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Revenue from Contract with Customer, Including Assessed Tax	$ 2,520,633	$ 2,680,236
Sales - Chase Candy
Revenue from Contract with Customer, Including Assessed Tax	1,408,187	1,481,267
Sales - Seasonal Candy
Revenue from Contract with Customer, Including Assessed Tax	$ 1,112,446	$ 1,198,969

NATURE OF BUSINESS AND SIGNIF_7

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Cumulative effects of the changes made to consolidated balance sheet for the adoption of the new revenue standard (Details) - USD ($)	Jun. 30, 2019	Jul. 01, 2018	Jun. 30, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts Payable	$ 78,549	$ 122,411	$ 176,871
Refund Liability Owed to Customers	$ 10,403	12,900
Early adoption
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts Payable			135,311
Refund Liability Owed to Customers			$ 0
Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts Payable		(12,900)
Refund Liability Owed to Customers		$ 12,900

NATURE OF BUSINESS AND SIGNIF_8

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Total impact of adoption on consolidated statement of operation and balance sheet (Details) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jul. 01, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts Payable	$ 78,549	$ 176,871	$ 122,411
Refund Liability Owed to Customers	10,403
Sales	2,520,633	2,680,236
Selling Expenses	284,410	$ 389,373
Change
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts Payable	10,403
Refund Liability Owed to Customers	(10,403)
Sales	66,978
Selling Expenses	66,978
Previous Standard
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts Payable	88,952
Refund Liability Owed to Customers	0
Sales	2,587,611
Selling Expenses	$ 351,388

NATURE OF BUSINESS AND SIGNIF_9

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details)	Jul. 01, 2019USD ($)	Jun. 30, 2019USD ($)segmentdivision	Jun. 30, 2018USD ($)
Nature Of Business And Significant Accounting Policies [Line Items]
Number of product divisions | division		2
Number of reportable segments | segment		1
Cost of sales		$ 1,873,249	$ 2,085,405
Advertising expense		15,603	14,779
Additional operating liabilities	$ 376,000
Freight costs
Nature Of Business And Significant Accounting Policies [Line Items]
Cost of sales		$ 147,635	$ 155,421

FORGIVABLE LOAN AND DEFERRED _2

FORGIVABLE LOAN AND DEFERRED INCOME (Details)	1 Months Ended	12 Months Ended
	Jun. 30, 2004USD ($)ft²	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)
Line of Credit Facility [Line Items]
Lease term of deferred revenue		20 years
Amortized deferred revenue into income for each period		$ 1,298	$ 1,299
Nodaway Valley Bank | Standby Letters of Credit
Line of Credit Facility [Line Items]
Economic development incentive, forgivable loan	$ 25,000
Term of forgivable loan	5 years
Loan rate per year	$ 5,000
Letter of credit, collateral amount	$ 25,000
Area of land occupying | ft²	20,000

NOTES PAYABLE AND LINE OF CREDI

NOTES PAYABLE AND LINE OF CREDIT - Long-term debt (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Debt Instrument [Line Items]
Total	$ 117,541	$ 36,011
Less Current Portion	97,133	11,224
Long-Term Portion	20,408	24,787
Nodaway Valley Bank: $350,000 line-of-credit agreement expiring on January 4, 2020, 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.
Debt Instrument [Line Items]
Total	85,000	0
Ford Credit: $705 monthly payments, interest of 5.8%; final payment due October 2021, secured by a vehicle.
Debt Instrument [Line Items]
Total	18,407	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	0	10,451
Toyota Credit: $444 monthly payments, interest of 6.49%; final payment due May 2022, secured by a vehicle.
Debt Instrument [Line Items]
Total	$ 14,134	$ 0

NOTES PAYABLE AND LINE OF CRE_2

NOTES PAYABLE AND LINE OF CREDIT - Long-term debt (Parentheticals) (Details) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Nodaway Valley Bank: $350,000 line-of-credit agreement expiring on January 4, 2020, 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.
Debt Instrument [Line Items]
Line-of-credit agreement, amount	$ 350,000	$ 350,000
Line of Credit Facility, Expiration date	Jan. 4, 2020	Jan. 4, 2020
Interest 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]
Line-of-credit agreement, amount	$ 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]
Line-of-credit agreement, amount	$ 364	$ 364
Notes payable, frequency	Monthly	Monthly
Interest rate	3.50%	3.50%
Maturity date	Dec. 31, 2020	Dec. 31, 2020
Toyota Credit: $444 monthly payments, interest of 6.49%; final payment due May 2022, secured by a vehicle.
Debt Instrument [Line Items]
Line-of-credit agreement, amount	$ 444	$ 444
Notes payable, frequency	monthly	monthly
Interest rate	6.49%	6.49%
Maturity date	May 1, 2022	May 1, 2022

NOTES PAYABLE AND LINE OF CRE_3

NOTES PAYABLE AND LINE OF CREDIT - Future minimum payments (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
NOTES PAYABLE
2020	$ 97,133
2021	12,893
2022	7,515
Total	$ 117,541	$ 36,011

CAPITAL STOCK - Shares authoriz

CAPITAL STOCK - Shares authorized, issued, and outstanding (Details)	Jun. 30, 2019shares
Class of Stock [Line Items]
Common stock- reserved for conversion of preferred shares authorized	2,000,000
Common stock- reserved for conversion of preferred shares issued	969,834
Common stock- reserved for conversion of preferred shares outstanding	969,834
Prior Cumulative Preferred
Class of Stock [Line Items]
Preferred shares authorized	240,000
Prior Cumulative Preferred Stock - Series A
Class of Stock [Line Items]
Preferred shares issued	100,000
Preferred shares outstanding	100,000
Prior Cumulative Preferred Stock - Series B
Class of Stock [Line Items]
Preferred shares issued	100,000
Preferred shares outstanding	100,000
Convertible Cumulative Preferred
Class of Stock [Line Items]
Preferred shares authorized	150,000
Cumulative Preferred Stock - Series A
Class of Stock [Line Items]
Preferred shares issued	58,533
Preferred shares outstanding	58,533
Cumulative Preferred Stock - Series B
Class of Stock [Line Items]
Preferred shares issued	9,539
Preferred shares outstanding	9,539

CAPITAL STOCK - Shares author_2

CAPITAL STOCK - Shares authorized, issued, and outstanding (Parenthetical) (Details) - $ / shares	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Class of Stock [Line Items]
Common stock, par value (in dollars per share)	$ 1	$ 1
Reserved for conversion of preferred stock (in shares)	1,030,166
Prior Cumulative Preferred
Class of Stock [Line Items]
Preferred stock, par value (in dollars per share)	$ 5	5
Stated percentage of preferred stock	6.00%
Convertible Cumulative Preferred
Class of Stock [Line Items]
Preferred stock, par value (in dollars per share)	$ 20	$ 20
Stated percentage of preferred stock	5.00%

CAPITAL STOCK - Preferred Stock

CAPITAL STOCK - Preferred Stock dividends in arrears on a per share basis (Details 1) - $ / shares	Jun. 30, 2019	Jun. 30, 2018
Prior Cumulative Preferred Stock - Series A
Class of Stock [Line Items]
Cumulative preferred stock dividends in arrears	$ 18.15	$ 17.85
Prior Cumulative Preferred Stock - Series B
Class of Stock [Line Items]
Cumulative preferred stock dividends in arrears	17.70	17.40
Cumulative Preferred Stock - Series A
Class of Stock [Line Items]
Cumulative preferred stock dividends in arrears	69.75	68.75
Cumulative Preferred Stock - Series B
Class of Stock [Line Items]
Cumulative preferred stock dividends in arrears	$ 69.75	$ 68.75

CAPITAL STOCK - Additional Info

CAPITAL STOCK - Additional Information (Details)	12 Months Ended
	Jun. 30, 2019USD ($)$ / shares	Jun. 30, 2018USD ($)
Class of Stock [Line Items]
Total cumulative preferred stock dividends in arrears | $	$ 8,333,022	$ 8,204,950
6% Prior Cumulative Preferred, $5 Par Value
Class of Stock [Line Items]
Redemption price per share (in dollars per share)	$ 5.25
Preferred stock, liquidation preference per share (in dollars per share)	$ 5.25
Prior Cumulative Preferred Stock - Series A
Class of Stock [Line Items]
Number of common stock exchanged for each preferred stock held	4
Prior Cumulative Preferred Stock - Series B
Class of Stock [Line Items]
Number of common stock exchanged for each preferred stock held	3.75
5% Convertible Cumulative Preferred, $20 Par Value
Class of Stock [Line Items]
Redemption price per share (in dollars per share)	$ 21
Preferred stock, liquidation preference per share (in dollars per share)	$ 20
Number of common stock exchanged for each preferred stock held	3.795

INCOME TAXES - Sources of defer

INCOME TAXES - Sources of deferred tax assets and liability (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Deferred Income Tax Assets:
Net Operating Loss Carryover	$ 66,741	$ 66,580
Valuation Allowance on Net Operating Loss	(39,682)	(29,460)
Trade Receivables	3,333	3,473
Deferred Income	1,937	2,273
Contribution Carryover	1,297	830
Inventories	0	540
Total Deferred Income Tax Assets	33,626	44,236
Deferred Income Tax Liability:
Property and Equipment	(33,626)	(44,236)
NET DEFERRED INCOME TAX ASSET	$ 0	$ 0

INCOME TAXES - Net deferred tax

INCOME TAXES - Net deferred tax assets (liability) (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
INCOME TAXES
Deferred Income Tax Asset	$ 0	$ 0

INCOME TAXES - Provision for in

INCOME TAXES - Provision for income taxes (Details) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
INCOME TAXES
Current Income Tax	$ 0	$ 0
Change in Deferred Taxes Due to Enacted Changes in Tax Law	0	(19,369)
Deferred Income Tax Credit	0	(6,653)
Total	$ 0	$ (26,022)

INCOME TAXES - Effective income

INCOME TAXES - Effective income tax rate reconciliation (Details) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
INCOME TAXES
Computed at Federal Statutory Rates	$ (7,363)	$ (55,176)
Increase (Decrease) in Income Taxes Resulting from:
Non-Deductible Expenses	138	3,288
Change in Deferred Taxes Due to Enacted Changes in Tax Law	0	(19,369)
Adjustment of Deferred Tax Balances	0	15,857
Changes in Judgment on Realizability of Deferred Tax Assets	7,225	24,207
State Income Taxes	0	5,171
Total	$ 0	$ (26,022)

INCOME TAXES - Additional Infor

INCOME TAXES - Additional Information (Details) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
INCOME TAXES
Federal statutory income tax rate, percent	21.00%	35.00%
Net provision adjustment to deferred income taxes	$ 0	$ 19,369
Operating loss carryforwards	256,075
Operating loss carry forwards expires	$ 16,460
Date of operating loss carry forwards expires	Jun. 30, 2038

LOSS PER SHARE (Details)

LOSS PER SHARE (Details) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Class of Stock [Line Items]
Net Loss	$ (35,062)	$ (245,241)
Preferred Dividend Requirements:
Total Dividend Requirements	128,072	128,072
Net Loss - Common Stockholders	$ (163,134)	$ (373,313)
Weighted Average Shares - Basic (in shares)	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)	$ (0.17)	$ (0.38)
Diluted Loss per Share (in dollars per share)	$ (0.17)	$ (0.38)
6% Prior Cumulative Preferred, $5 Par Value
Preferred Dividend Requirements:
Total Dividend Requirements	$ 60,000	$ 60,000
5% Convertible Cumulative Preferred, $20 Par Value
Preferred Dividend Requirements:
Total Dividend Requirements	$ 68,072	$ 68,072

LOSS PER SHARE (Parentheticals)

LOSS PER SHARE (Parentheticals) (Details) - $ / shares	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
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%
Preferred stock, par value (in dollars per share)	$ 20

SUPPLEMENTAL DISCLOSURES OF C_3

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION (Details) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash Paid for:
Interest	$ 6,710	$ 5,341
Non-Cash Transactions:
Financing of New Vehicles	$ 14,465	$ 0

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Future minimum lease payments (Details)	Jun. 30, 2019USD ($)
COMMITMENTS, CONTINGENCIES AND RELATED PARTY TRANSACTIONS
2020	$ 78,000
2021	78,000
2022	78,000
2023	78,000
2024	78,000
Thereafter	58,500
Future minimum payments due, Total	$ 448,500

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES - Additional Information (Details)	12 Months Ended
	Jun. 30, 2019USD ($)item	Jun. 30, 2018USD ($)
Long-term Purchase Commitment [Line Items]
Additional lease period	5 years
Lease payments per month	$ 6,500
Percentage of base rent to be increased	30.00%
Rental expense	$ 78,000	$ 78,000
Raw material
Long-term Purchase Commitment [Line Items]
Raw materials purchase commitments, number of vendors | item	5
Raw materials purchase commitments	$ 216,900

CONCENTRATION OF CREDIT RISK (D

CONCENTRATION OF CREDIT RISK (Details) - Customer concentration risk - customer	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Gross sales
Concentration Risk [Line Items]
Number of customers accounted credit risk	2	2
Customer concentration risk, percentage	53.00%	54.00%
Trade receivables
Concentration Risk [Line Items]
Number of customers accounted credit risk	3	4
Customer concentration risk, percentage	52.00%	63.00%