Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2021 | Nov. 15, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 2-5916 | |
Entity Registrant Name | CHASE GENERAL CORP | |
Entity Incorporation, State or Country Code | MO | |
Entity Tax Identification Number | 36-2667734 | |
Entity Address, Address Line One | 1307 South 59th, | |
Entity Address, City or Town | St. Joseph, | |
Entity Address, State or Province | MO | |
Entity Address, Postal Zip Code | 64507 | |
City Area Code | 816 | |
Local Phone Number | 279-1625 | |
Title of 12(b) Security | None | |
Trading Symbol | Not Applicable | |
Security Exchange Name | NONE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 969,834 | |
Entity Central Index Key | 0000015357 | |
Current Fiscal Year End Date | --06-30 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 |
CURRENT ASSETS | ||
Cash and Cash Equivalents | $ 5,804 | $ 7,115 |
Trade Receivables, Net of Allowance for Doubtful Accounts of $15,248 and $14,948, Respectively | 666,951 | 196,802 |
Inventories: | ||
Finished Goods | 256,710 | 287,245 |
Goods in Process | 16,823 | 11,254 |
Raw Materials | 158,442 | 97,324 |
Packaging Materials | 210,641 | 224,318 |
Prepaid Expenses | 31,627 | 10,137 |
Total Current Assets | 1,346,998 | 834,195 |
PROPERTY AND EQUIPMENT | ||
Land | 35,000 | 35,000 |
Buildings | 77,348 | 77,348 |
Machinery and Equipment | 867,691 | 867,691 |
Trucks and Autos | 158,632 | 158,632 |
Office Equipment | 33,025 | 33,025 |
Leasehold Improvements | 72,068 | 72,068 |
Total | 1,243,764 | 1,243,764 |
Less: Accumulated Depreciation | 1,121,057 | 1,111,377 |
Total Property and Equipment, Net | 122,707 | 132,387 |
Other Long-Term Assets: | ||
Right of Use Assets | 243,879 | 259,293 |
Total Long-Term Assets | 366,586 | 391,680 |
Total Assets | 1,713,584 | 1,225,875 |
CURRENT LIABILITIES | ||
Accounts Payable | 234,398 | 40,274 |
Current Maturities of Notes Payable | 338,467 | 124,730 |
Current Maturities of Lease Liability | 64,188 | 63,137 |
Accrued Expenses | 56,553 | 26,285 |
Refund Liability Owed to Customers | 28,000 | 9,794 |
Deferred Income | 1,299 | 1,299 |
Total Current Liabilities | 722,905 | 265,519 |
LONG-TERM LIABILITIES | ||
Lease Liabilities, Less Current Maturities | 179,691 | 196,156 |
Deferred Income | 3,246 | 3,570 |
Total Long-Term Liabilities | 182,937 | 199,726 |
Total Liabilities | 905,842 | 465,245 |
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 | (5,658,254) | (5,705,366) |
Total Stockholders' Equity | 807,742 | 760,630 |
Total Liabilities and Stockholders' Equity | 1,713,584 | 1,225,875 |
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 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 |
Allowance for doubtful accounts on trade receivables (in dollars) | $ 15,248 | $ 14,948 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Prior Cumulative Preferred Stock | ||
Preferred stock, par value (in dollars per share) | $ 5 | $ 5 |
Prior Cumulative Preferred Stock - Series A | ||
Preferred stock, liquidation preference (in dollars) | $ 2,407,500 | $ 2,400,000 |
Prior Cumulative Preferred Stock - Series B | ||
Preferred stock, liquidation preference (in dollars) | $ 2,362,500 | $ 2,355,000 |
Convertible Cumulative Preferred | ||
Preferred stock, par value (in dollars per share) | $ 20 | $ 20 |
Cumulative Preferred Stock - Series A | ||
Preferred stock, liquidation preference (in dollars) | $ 5,385,029 | $ 5,370,395 |
Cumulative Preferred Stock - Series B | ||
Preferred stock, liquidation preference (in dollars) | $ 877,595 | $ 875,211 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | ||
SALES | $ 877,576 | $ 865,247 |
COST OF SALES | 582,867 | 502,836 |
Gross Profit on Sales | 294,709 | 362,411 |
OPERATING EXPENSES | ||
Selling | 85,890 | 79,708 |
General and Administrative | 159,438 | 180,042 |
Total Operating Expenses | 245,328 | 259,750 |
Income (Loss) from Operations | 49,381 | 102,661 |
OTHER INCOME (EXPENSE) | ||
Miscellaneous Income | 368 | 4,400 |
Interest Expense | (2,637) | (1,198) |
Total Other Income (Expense) | (2,269) | 3,202 |
Income before Income Taxes | 47,112 | 105,863 |
INCOME TAX BENEFIT (PROVISION) | 0 | |
NET INCOME | $ 47,112 | $ 105,863 |
EARNINGS PER SHARE | ||
Basic (in dollars per share) | $ 0.02 | $ 0.08 |
Diluted (in dollars per share) | $ 0.01 | $ 0.08 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net Income | $ 47,112 | $ 105,863 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Depreciation and Amortization | 9,680 | 10,249 |
Allowance for Bad Debts | 300 | 300 |
Deferred Income Amortization | (324) | (325) |
Effects of Changes in Operating Assets and Liabilities: | ||
Trade Receivables | (470,449) | (505,591) |
Inventories | (22,475) | (117,896) |
Prepaid Expenses | (21,490) | (27,732) |
Accounts Payable | 194,124 | 185,926 |
Refund Liability Owed to Customers | 18,206 | 12,866 |
Accrued Expenses | 30,268 | 32,180 |
Net Cash Used by Operating Activities | (215,048) | (304,160) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Outstanding Checks in Excess of Bank Balance | 43,921 | |
Proceeds from Line-of-Credit | 215,000 | 210,000 |
Principal Payments on Notes Payable | (1,263) | (3,151) |
Net Cash Provided by Financing Activities | 213,737 | 250,770 |
DECREASE IN CASH AND CASH EQUIVALENTS | (1,311) | (53,390) |
Cash and Cash Equivalents - Beginning of Period | 7,115 | $ 53,390 |
CASH AND CASH EQUIVALENTS - END OF PERIOD | $ 5,804 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Sep. 30, 2021 | |
SIGNIFICANT ACCOUNTING POLICIES | |
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, 2021 has been taken from audited consolidated financial statements at that date and condensed. The condensed consolidated financial statements as of and for the three months ended September 30, 2021 and for the three months ended September 30, 2020 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, 2021. The results of operations for the three months ended September 30, 2021 and cash flows for the three months ended September 30, 2021 are not necessarily indicative of the results for the entire fiscal year ending June 30, 2022. 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. 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 added, 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 first quarter of the year ending June 30, 2022 resulting from updated estimates of revenue for prior year product sales were not significant. The Company has elected a practical expedient to recognize incremental costs incurred to obtain contracts, which primarily represent sales commissions where the amortization period would be less than one year, as a selling expense when incurred in the financial statements. NOTE 1 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Revenue Recognition (Continued) 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, 2021 2020 Sales - Chase Candy $ 366,788 $ 380,205 Sales - Seasonal Candy 510,788 485,042 Sales $ 877,576 $ 865,247 Recently Issued Pronouncements There have been no newly issued or newly applicable accounting pronouncements that have, or are expected to have, a significant impact on the Company’s consolidated financial statements. Subsequent Events No other events have occurred subsequent to September 30, 2021, 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, 2021. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Sep. 30, 2021 | |
EARNINGS PER SHARE | |
EARNINGS PER SHARE | NOTE 2 EARNINGS PER SHARE The earnings per share was computed on the weighted average of outstanding common shares during the period. Diluted earnings per share are calculated by including contingently issuable shares with the weighted average shares outstanding. Three Months Ended September 30, 2021 2020 Net Income $ 47,112 $ 105,863 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 Income - Common Stockholders $ 15,094 $ 73,845 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 Earnings per Share $ 0.02 $ 0.08 Diluted Earnings per Share $ 0.01 $ 0.08 Cumulative Preferred Stock dividends in arrears at September 30, 2021 and 2020 totaled $8,621,184 and $8,493,112, respectively. Total dividends in arrears, on a per share basis, consist of the following: Three Months Ended September 30, 2021 2020 6% Convertible: Series A $ 19 $ 19 Series B $ 18 $ 18 5% Convertible: Series A $ 72 $ 71 Series B $ 72 $ 71 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. 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, 2021 | |
NOTES PAYABLE AND LINE OF CREDIT | |
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 2021 2021 Nodaway Valley Bank $350,000 line-of-credit agreement expiring on January 4, 2022, 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. $ 335,000 $ 120,000 Toyota Credit $444 monthly payments, interest of 6.49%; final payment due May 2022, secured by a vehicle. 3,467 4,730 Total 338,467 124,730 Less Current Portion 338,467 124,730 Long-Term Portion $ — $ — Future minimum payments for the twelve months ending September 30 are: September 30, Amount 2022 $ 338,467 2023 — Total $ 338,467 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Sep. 30, 2021 | |
INCOME TAXES | |
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 |
SUPPLEMENTAL DISCLOSURES OF CAS
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | 3 Months Ended |
Sep. 30, 2021 | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | NOTE 5 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Three Months Ended September 30, 2021 2020 Cash Paid for: Interest $ 70 $ 1,198 |
DISCLOSURES ABOUT FAIR VALUE OF
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Sep. 30, 2021 | |
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS | |
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, 2021, 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. |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND RELATED PARTY TRANSACTIONS | 3 Months Ended |
Sep. 30, 2021 | |
COMMITMENTS, CONTINGENCIES AND RELATED PARTY TRANSACTIONS | |
COMMITMENTS, CONTINGENCIES AND RELATED PARTY TRANSACTIONS | NOTE 7 COMMITMENT, CONTINGENCIES, AND RELATED PARTY TRANSACTIONS The Company leases its office and manufacturing facility, located at 1307 South 59 th Operating lease right-of-use assets and lease liabilities were recognized upon adoption of the lease standard based on the present value of minimum lease payments over the remaining lease term. The Company’s operating lease has a remaining term of 3.5 years and the present value of the lease payments is calculated using the lessor’s implicit rate of 6.43%. Operating lease expense is recognized on a straight-line basis over the lease term. The Company’s lease agreement does not contain any residual value guarantees. Additionally, any other short-term leases are immaterial. The Company elected the practical expedient to not separate lease and non-lease components and also elected the short-term practical expedient for all leases that qualify. As a result, the Company will not recognize right-of-use assets or liabilities for short-term leases that qualify for the short-term practical expedient, but instead will recognize the lease payments as lease cost on a straight-line basis over the lease term. Operating lease expenses and cash paid for operating lease liabilities were $19,500 for the three months ended September 30, 2021, of which, $17,891 is included in cost of sales and $1,609 is included in general and administrative expenses. Minimum annual payments required under existing operating lease liabilities that have initial or remaining noncancelable terms in excess of one year as of September 30, 2021 are as follows: Twelve Months Ending September 30, Amount 2022 $ 78,000 2023 78,000 2024 78,000 2025 39,000 Total Lease Payments 273,000 Less: Imputed Interest 29,121 Total Lease Liabilities $ 243,879 |
CURRENT ECONOMIC CONDITIONS
CURRENT ECONOMIC CONDITIONS | 3 Months Ended |
Sep. 30, 2021 | |
CURRENT ECONOMIC CONDITIONS | |
CURRENT ECONOMIC CONDITIONS | NOTE 8 CURRENT ECONOMIC CONDITIONS The COVID-19 pandemic is having significant effects on global markets, supply chains, businesses, and communities. The Company put preparedness plans in place at the manufacturing facility. They have adjusted the number of people allowed at their facilities, enforced social distancing, maintained proper sanitation protocol and have asked that any high risk or employees feeling ill to not come in. The office and sales staff continues to work, while adhering to social distancing guidelines, implementing flexible hours, reducing person-to-person interaction and increasing safety measures. The Company believes they have sufficient liquidity to satisfy current cash needs, however, they continue to evaluate and take action, as necessary, to preserve adequate liquidity and ensure that the business can continue to operate during these uncertain times. The potential impact to the Company’s consolidated financial statements could occur as early as the second quarter of fiscal year ending June 30, 2022 and include, but not limited to: impairment of long lived assets; including property and equipment and operating lease right-of-use assets related to the Company’s fair value and collectability of receivables and other financial assets. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Sep. 30, 2021 | |
SIGNIFICANT ACCOUNTING POLICIES | |
General | General The condensed consolidated balance sheet of Chase General Corporation (hereinafter referred to as Chase, we, our, and us) at June 30, 2021 has been taken from audited consolidated financial statements at that date and condensed. The condensed consolidated financial statements as of and for the three months ended September 30, 2021 and for the three months ended September 30, 2020 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, 2021. The results of operations for the three months ended September 30, 2021 and cash flows for the three months ended September 30, 2021 are not necessarily indicative of the results for the entire fiscal year ending June 30, 2022. 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. |
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 added, 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 first quarter of the year ending June 30, 2022 resulting from updated estimates of revenue for prior year product sales were not significant. The Company has elected a practical expedient to recognize incremental costs incurred to obtain contracts, which primarily represent sales commissions where the amortization period would be less than one year, as a selling expense when incurred in the financial statements. NOTE 1 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Revenue Recognition (Continued) 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, 2021 2020 Sales - Chase Candy $ 366,788 $ 380,205 Sales - Seasonal Candy 510,788 485,042 Sales $ 877,576 $ 865,247 |
Recently Adopted And Issued Pronouncements | Recently Issued Pronouncements There have been no newly issued or newly applicable accounting pronouncements that have, or are expected to have, a significant impact on the Company’s consolidated financial statements. |
Subsequent Events | Subsequent Events No other events have occurred subsequent to September 30, 2021, 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, 2021. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of divisions of revenue | For the three months ended September 30, 2021 2020 Sales - Chase Candy $ 366,788 $ 380,205 Sales - Seasonal Candy 510,788 485,042 Sales $ 877,576 $ 865,247 |
NOTES PAYABLE AND LINE OF CRE_2
NOTES PAYABLE AND LINE OF CREDIT (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
NOTES PAYABLE AND LINE OF CREDIT | |
Schedule of long-term debt | September 30, June 30, Payee Terms 2021 2021 Nodaway Valley Bank $350,000 line-of-credit agreement expiring on January 4, 2022, 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. $ 335,000 $ 120,000 Toyota Credit $444 monthly payments, interest of 6.49%; final payment due May 2022, secured by a vehicle. 3,467 4,730 Total 338,467 124,730 Less Current Portion 338,467 124,730 Long-Term Portion $ — $ — |
Schedule of future minimum payments of long term debt | September 30, Amount 2022 $ 338,467 2023 — Total $ 338,467 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
EARNINGS PER SHARE | |
Schedule of earnings per share computed on the weighted average of outstanding common shares | Three Months Ended September 30, 2021 2020 Net Income $ 47,112 $ 105,863 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 Income - Common Stockholders $ 15,094 $ 73,845 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 Earnings per Share $ 0.02 $ 0.08 Diluted Earnings per Share $ 0.01 $ 0.08 |
Schedule of total dividends in arrears, on a per share basis | Three Months Ended September 30, 2021 2020 6% Convertible: Series A $ 19 $ 19 Series B $ 18 $ 18 5% Convertible: Series A $ 72 $ 71 Series B $ 72 $ 71 |
SUPPLEMENTAL DISCLOSURES OF C_2
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |
Schedule of supplemental disclosures of cash flow information | Three Months Ended September 30, 2021 2020 Cash Paid for: Interest $ 70 $ 1,198 |
COMMITMENTS, CONTINGENCIES AN_2
COMMITMENTS, CONTINGENCIES AND RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
COMMITMENTS, CONTINGENCIES AND RELATED PARTY TRANSACTIONS | |
Schedule of annual payments | Twelve Months Ending September 30, Amount 2022 $ 78,000 2023 78,000 2024 78,000 2025 39,000 Total Lease Payments 273,000 Less: Imputed Interest 29,121 Total Lease Liabilities $ 243,879 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract [true false] | true | |
Sales | $ 877,576 | $ 865,247 |
Sales - Chase Candy | ||
Disaggregation of Revenue [Line Items] | ||
Sales | 366,788 | 380,205 |
Sales - Seasonal Candy | ||
Disaggregation of Revenue [Line Items] | ||
Sales | $ 510,788 | $ 485,042 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Additional information (Details) | 3 Months Ended |
Sep. 30, 2021divisionsegment | |
SIGNIFICANT ACCOUNTING POLICIES | |
Number of product divisions | division | 2 |
Number of reportable segment | segment | 1 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Class of Stock [Line Items] | ||
Net Income | $ 47,112 | $ 105,863 |
Preferred Dividend Requirements: | ||
Total Dividend Requirements | 32,018 | 32,018 |
Net Income - Common Stockholders | $ 15,094 | $ 73,845 |
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 Earnings per Share | $ 0.02 | $ 0.08 |
Diluted Earnings per Share | $ 0.01 | $ 0.08 |
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 |
EARNINGS PER SHARE (Parenthetic
EARNINGS PER SHARE (Parentheticals) (Details) - $ / shares | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
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 |
EARNINGS PER SHARE - Cumulative
EARNINGS PER SHARE - Cumulative Preferred Stock dividends (Details) - $ / shares | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Prior Cumulative Preferred Stock - Series A | ||
Class of Stock [Line Items] | ||
Total dividends in arrears | $ 19 | $ 19 |
Prior Cumulative Preferred Stock - Series B | ||
Class of Stock [Line Items] | ||
Total dividends in arrears | 18 | 18 |
Cumulative Preferred Stock - Series A | ||
Class of Stock [Line Items] | ||
Total dividends in arrears | 72 | 71 |
Cumulative Preferred Stock - Series B | ||
Class of Stock [Line Items] | ||
Total dividends in arrears | $ 72 | $ 71 |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional information (Details) | 3 Months Ended | |
Sep. 30, 2021USD ($)$ / sharesshares | Sep. 30, 2020USD ($)$ / sharesshares | |
Class of Stock [Line Items] | ||
Total cumulative preferred stock dividends in arrears | $ | $ 8,621,184 | $ 8,493,112 |
6% Prior Cumulative Preferred, $5 par value | ||
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 |
Prior Cumulative Preferred Stock - Series A | ||
Class of Stock [Line Items] | ||
Number of common stock exchanged for each preferred stock held | shares | 1 | 1 |
Number of common stock exchanged for each preferred stock held | 4 | 4 |
Prior Cumulative Preferred Stock - Series B | ||
Class of Stock [Line Items] | ||
Number of common stock exchanged for each preferred stock held | shares | 1 | 1 |
Number of common stock exchanged for each preferred stock held | 3.75 | 3.75 |
5% Convertible Cumulative Preferred, $20 Par Value | ||
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 | shares | 1 | 1 |
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, 2021 | Jun. 30, 2021 |
Debt Instrument [Line Items] | ||
Total | $ 338,467 | $ 124,730 |
Less Current Portion | 338,467 | 124,730 |
Nodaway Valley Bank: $350,000 line-of-credit agreement expiring on January 4, 2022, 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 | 335,000 | 120,000 |
Toyota Credit: $444 monthly payments, interest of 6.49%; final payment due May 2022, secured by a vehicle. | ||
Debt Instrument [Line Items] | ||
Total | $ 3,467 | $ 4,730 |
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, 2021 | Jun. 30, 2021 | |
Nodaway Valley Bank: $350,000 line-of-credit agreement expiring on January 4, 2022, 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, 2022 | Jan. 4, 2022 |
Interest rate | 5.00% | 5.00% |
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 |
Line of Credit Facility, Expiration date | May 1, 2022 | May 1, 2022 |
Interest rate | 6.49% | 6.49% |
NOTES PAYABLE AND LINE OF CRE_5
NOTES PAYABLE AND LINE OF CREDIT - Future minimum payments (Details) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 |
NOTES PAYABLE AND LINE OF CREDIT | ||
2022 | $ 338,467 | |
Total | $ 338,467 | $ 124,730 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended |
Sep. 30, 2021USD ($) | |
INCOME TAXES | |
Provision for income tax | $ 0 |
Unrecognized Tax Benefits | 0 |
Accruals for interest or penalties | $ 0 |
SUPPLEMENTAL DISCLOSURES OF C_3
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Paid for: | ||
Interest | $ 70 | $ 1,198 |
COMMITMENTS, CONTINGENCIES AN_3
COMMITMENTS, CONTINGENCIES AND RELATED PARTY TRANSACTIONS - Future minimum lease payments (Details) | Sep. 30, 2021USD ($) |
COMMITMENTS, CONTINGENCIES AND RELATED PARTY TRANSACTIONS | |
2022 | $ 78,000 |
2023 | 78,000 |
2024 | 78,000 |
2025 | 39,000 |
Total Lease Payments | 273,000 |
Less: Imputed Interest | 29,121 |
Total Lease Liabilities | $ 243,879 |
COMMITMENTS, CONTINGENCIES AN_4
COMMITMENTS, CONTINGENCIES AND RELATED PARTY TRANSACTIONS - Additional Information (Details) | 3 Months Ended |
Sep. 30, 2021USD ($) | |
Long-term Purchase Commitment [Line Items] | |
Additional lease period | 5 years |
Option to extend | true |
Lease payments per month | $ 6,500 |
Lease, Practical Expedient, Lessor Single Lease Component [true false] | true |
Operating lease remaining term | 3 years 6 months |
Operating Lease lessor's implicit rate | 6.43% |
Operating lease liabilities | $ 19,500 |
Cost of sales | |
Long-term Purchase Commitment [Line Items] | |
Operating lease liabilities | 17,891 |
General and administrative expenses | |
Long-term Purchase Commitment [Line Items] | |
Operating lease liabilities | $ 1,609 |