Truett-Hurst (THST) 10-Q 14 Feb 17 2017 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information	6 Months Ended
	Dec. 31, 2016shares
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Entity Registrant Name	Truett-Hurst, Inc.
Entity Central Index Key	1,564,709
Current Fiscal Year End Date	--06-30
Entity Filer Category	Smaller Reporting Company
Trading Symbol	THST
Entity Common Stock, Shares Outstanding	4,351,789

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2016	Jun. 30, 2016
Current assets:
Cash and cash equivalents	$ 26	$ 4,043
Accounts receivable	2,011	2,678
Inventories, net	19,755	19,918
Bulk wine deposits	0	271
Other current assets	111	125
Total current assets	21,903	27,035
Property and equipment, net	5,437	5,583
Intangible assets, net	501	496
Other assets, net	334	391
Total assets	28,175	33,505
Current liabilities:
Lines of credit	4,881	10,311
Accounts payable	1,492	1,351
Accrued expenses	667	1,348
Depletion allowance	500	610
Due to related parties	32	0
Current maturities of long term debt	516	475
Total current liabilities	8,088	14,095
Long term debt, net of current maturities	3,233	3,189
Total liabilities	11,321	17,284
Commitments and contingencies (Note 5)
Stockholders’ equity
Preferred stock, par value of $0.001 per share, 5,000,000 shares authorized, none issued and outstanding at December 31, 2016 and June 30, 2016	0	0
Additional paid-in capital	15,945	15,794
Accumulated deficit	(5,330)	(5,600)
Total Truett-Hurst, Inc. equity	10,619	10,198
Noncontrolling interest	6,235	6,023
Total equity	16,854	16,221
Total liabilities and equity	28,175	33,505
Common Class A [Member]
Stockholders’ equity
Common Stock, Value	4	4
Common Class B [Member]
Stockholders’ equity
Common Stock, Value	$ 0	$ 0

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares	Dec. 31, 2016	Jun. 30, 2016
Preferred Stock, Par or Stated Value Per Share (In dollars per share)	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Class A [Member]
Common Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.001	$ 0.001
Common Stock, Shares Authorized	15,000,000	15,000,000
Common Stock, Shares Issued	4,351,789	4,306,609
Common Stock, Shares Outstanding	4,351,789	4,306,609
Common Class B [Member]
Common Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.001	$ 0.001
Common Stock, Shares Authorized	1,000	1,000
Common Stock, Shares Issued	7	7
Common Stock, Shares Outstanding	7	7

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Sales	$ 5,958	$ 8,748	$ 12,060	$ 15,280
Less excise tax	(221)	(242)	(438)	(405)
Net sales	5,737	8,506	11,622	14,875
Cost of sales	3,700	5,866	7,756	10,086
Gross profit	2,037	2,640	3,866	4,789
Operating expenses:
Sales and marketing	1,380	1,384	2,604	2,822
General and administrative	706	719	1,518	1,609
Loss (gain) on disposal of assets	26	0	43	(1)
Total operating expenses	2,112	2,103	4,165	4,430
(Loss) income from operations	(75)	537	(299)	359
Other income (expense):
Interest expense, net	(96)	(86)	(176)	(169)
Other	101	25	959	(69)
Total other income (expense), net	5	(61)	783	(238)
Net (loss) income before income taxes	(70)	476	484	121
Income tax expense	(1)	(1)	(2)	(1)
Net (loss) income from continuing operations	(71)	475	482	120
Income from discontinued operations, net of tax	$ 0	$ 30	0	45
Net (loss) income attributable to Truett-Hurst, Inc. and H.D.D. LLC			$ 482	$ 165
Net (loss) income per share:
Basic per share	$ (0.01)	$ 0.06	$ 0.06	$ 0.01
Diluted per share	$ (0.01)	$ 0.03	$ 0.04	$ 0
Weighted average shares used in computing net (loss) income per share:
Basic weighted average shares	4,314,553	4,062,341	4,310,559	4,045,634
Diluted weighted average shares	4,314,553	7,239,918	7,510,936	7,200,405
Truett-Hurst, Inc and H.D.D. LLC [Member]
Other income (expense):
Net (loss) income attributable to Truett-Hurst, Inc. and H.D.D. LLC	$ (71)	$ 505	$ 482	$ 165
H.D.D. LLC [Member]
Other income (expense):
Net (loss) income attributable to noncontrolling interest: H.D.D. LLC	(25)	270	212	(144)
Truett-Hurst, Inc [Member]
Other income (expense):
Net (loss) income attributable to Truett-Hurst, Inc.	$ (46)	$ 235	$ 270	$ 21

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Net income	$ 482	$ 165
Income from discontinued operations, net of tax	0	(45)
Net income from continuing operations	482	120
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	410	295
Reserve for assets to be abandoned	127	0
Stock-based compensation	151	172
(Gain) loss on fair value of interest rate swap	(130)	37
Loss (gain) on disposal of assets	43	(1)
Changes in operating assets and liabilities, net
Accounts receivable	667	(836)
Inventories	163	1,930
Bulk wine deposits	271	320
Other current assets	22	104
Accounts payable	141	(248)
Accrued expenses	(557)	228
Depletion allowance	(110)	120
Due to related parties	32	104
Cash provided by discontinued operations	0	55
Net cash provided by operating activities	1,712	2,400
Cash flows from investing activities:
Acquisition of property and equipment	(371)	(368)
Acquisition of intangible and other assets	(18)	(53)
Proceeds from sale of assets	5	2
Net cash used in investing activities	(384)	(419)
Cash flows from financing activities:
Net (payments on) proceeds from line of credit	(5,430)	1,229
Proceeds from long term debt	387	443
Payments on long-term debt	(302)	(214)
Net cash (used in) provided by financing activities	(5,345)	1,458
Net change in cash and cash equivalents	(4,017)	3,439
Cash and cash equivalents at beginning of period	4,043	1,578
Cash and cash equivalents at end of period	26	5,017
Supplemental disclosure of cash flow information:
Cash paid for interest	174	169
Cash paid for income taxes	2	0
Non-cash financing activity:
Conversion of equipment line of credit to term loan	$ 387	$ 500

BASIS OF PRESENTATION AND SIGNI

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations [Text Block]	NOTE 1 – BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES The unaudited interim condensed consolidated financial statements include the results of Truett-Hurst, Inc. (“THI”) and its subsidiary H.D.D. LLC (“LLC”). They have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with general instructions for quarterly reports filed on Form 10-Q and Article 8 of Regulation S-X. THI consolidates the financial results of the LLC and records a noncontrolling interest representing the portion of equity ownership in the LLC that is not attributable to THI. On January 25, 2016, the LLC sold its fifty percent interest in The Wine Spies, LLC (“Wine Spies”) with an effective date of December 31, 2015. The results from Wine Spies, which were previously consolidated, have been deconsolidated in the unaudited interim condensed consolidated financial statements. The gain on the sale along with the current year results have been recorded in the condensed consolidated statements of operations as part of discontinued operations. The accompanying unaudited condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. The accompanying unaudited condensed consolidated financial statements were prepared on the same basis as the audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2016, and, in the opinion of management, these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented. The operating results for the interim period presented are not necessarily indicative of the results expected for the full fiscal year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Annual Report on Form 10-K for the fiscal year ended June 30, 2016 filed with the SEC on September 28, 2016. Quantities or results referred to as “to date” or “as of this date” mean as of or to December 31, 2016, unless otherwise specifically noted. References to “FY” or “fiscal year” refer to the fiscal year ending on June 30 th There have been no material changes to the critical accounting policies and estimates previously disclosed in the Annual Report on Form 10-K for the fiscal year ended June 30, 2016. Certain prior period amounts in the condensed consolidated financial statements and notes thereto have been reclassified to conform to the current year presentation. These reclassifications had no effect on the reported consolidated results of continuing operations. In November 2015, the FASB issued ASU No. 2015-17: Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. In February 2016, the FASB issued ASU No. 2016-02: Leases (Topic 842). In March 2016, the FASB issued ASU No. 2016-09: Improvements to Employee Share-Based Payment Accounting Compensation – Stock Compensation. In August 2016, the FASB issued ASU No. 2016-15: Statement of Cash Flows (Topic 230) – Classification of Certain Cash Receipts and Cash Payments In January 2017, the FASB issued ASU No. 2017-01: Business Combinations (Topic 805) – Clarifying the Definition of a Business.

INVENTORIES

INVENTORIES	6 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
Inventory Disclosure [Text Block]	NOTE 2 – INVENTORIES Inventories comprise: December 31, 2016 June 30, 2016 (in thousands) Grapes and bulk wine $ 7,757 $ 8,413 Bottled wine 11,779 11,262 Bottling materials and other 242 322 19,778 19,997 Less: inventory reserves (23) (79) Total inventories $ 19,755 $ 19,918

PROPERTY AND EQUIPMENT, net

PROPERTY AND EQUIPMENT, net	6 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment Disclosure [Text Block]	NOTE 3 – PROPERTY AND EQUIPMENT, net December 31, 2016 June 30, 2016 (in thousands) Land and land improvements $ 3,260 $ 3,231 Building and improvements 1,402 1,380 Machinery and equipment 1,985 1,935 Vineyard development 554 554 Vineyard equipment 88 88 Furniture and fixtures 286 262 Leasehold improvements 24 190 Vehicles 85 85 7,684 7,725 Less: accumulated depreciation and amortization (2,247) (2,142) Total property and equipment, net $ 5,437 $ 5,583 Total depreciation and amortization expense for the three and six months ended December 31, 2016 were $ 0.2 0.4 0.1 0.3

BORROWINGS

BORROWINGS	6 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	NOTE 4 – BORROWINGS The Company’s indebtedness is comprised primarily of bank loans including lines of credit and long term debt. Lines of Credit The credit facilities, which mature on July 31, 2017 10.0 2.25 0.5 0.1 The credit facilities are secured by a pledge of substantially all of the Company’s assets with guarantees from the LLC members. The bank borrowings contain usual and customary covenants, including, among others, limitations on incurrence of senior indebtedness, the making of loans and advances, investments, acquisitions, and capital expenditures, the incurrence of liens, and the consummation of mergers and asset sales. The loan maintains the minimum current assets to current liabilities ratio covenant (measured quarterly) and the maximum debt to effective tangible net worth ratio covenant (measured quarterly). Long Term Debt December 31, 2016 June 30, 2016 (in thousands except payment information) Long term debt: Note 1 (1) $ 2,784 $ 2,851 Note 2 (2) 83 120 Note 3 (3) 201 244 Note 4 (4) - 57 Note 5 (5) 332 392 Note 6 (6) 349 - 3,749 3,664 Less: current maturities (516) (475) Total long term debt $ 3,233 $ 3,189 (1) Note payable to a bank, secured by a deed of trust on property, payable monthly with principal payments of $ 11,270 May 31, 2022 2.25 (2) Note payable to a bank, secured by equipment, payable monthly with principal and interest payments of $ 6,535 January 15, 2018 3.75 (3) Note payable to a bank, secured by equipment, payable monthly with principal and interest payments of $ 7,783 March 1, 2019 3.75 (4) On November 30, 2014, the Company acquired the unrestricted use of the Stonegate trademark in exchange for a trademark release payment which is to be made over time and is accounted for as a note payable. The note payable has three equal installments: a) within five days of November 30, 2014, b) on October 31, 2015, and c) on July 31, 2016. The note does not accrue interest outstanding on the principal. An imputed interest rate of 5.5 (5) Note payable to a bank, secured by equipment, payable monthly with principal and interest payments of $ 11,267 July 1, 2019 3.90 (6) Note payable to a bank, secured by equipment, payable monthly with principal and interest payments of $ 8,729 July 1, 2020 3.95 Years ending June 30, (in thousands) 2017 (remaining six months) $ 256 2018 491 2019 434 2020 249 2021 144 Thereafter 2,175 3,749 Add: estimated interest payments 579 Total future principal and interest payments $ 4,328

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	NOTE 5 – COMMITMENTS AND CONTINGENCIES Leases The Company leases one of its tasting rooms and a winery production facility. The lease for both of these facilities was modified in July 2016. The modification calls for the Company to vacate the tasting room portion of the property no later than December 31, 2016, and the balance of the space no later than May 31, 2017. The tasting room located on Westside Rd. was vacated as of December 31, 2016. The Company has two lease agreements for administrative office space. Both are three-year leases with an end date of October 31, 2019. One of these leases contains three one-year renewal options with adjustment to market rates. Lease payments for these facilities were $ 0.09 0.2 0.1 0.2 Years ending June 30, (in thousands) 2017 (remaining six months) $ 96 2018 84 2019 90 2020 31 Thereafter - Total future lease payments $ 301 Supply Contracts The Company enters into short and long term contracts with third-parties and related party growers to supply a portion of its future grape and bulk wine inventory requirements. The grape commitments for the fiscal year 2017 were received in the first quarter of FY17. The Company did not extend a large contract for the purchase of bulk wine to future years. Years ending June 30, Third-Parties Related Parties Total (in thousands) 2017 $ 1,652 $ - $ 1,652 2018 531 57 588 2019 310 - 310 Thereafter - - - Total grape and bulk purchase commitments $ 2,493 $ 57 $ 2,550 At December 31, 2016, total future purchase commitments for finished goods were approximately $ 1.8 0.03 Production & Storage The Company enters into various contracts with third-party service providers for grape crushing, wine storage, and bottling. The costs are recorded in the period for which the service is provided. The actual costs related to custom crush services are based on volume. The Company’s current contracts for custom crush services cover the 2016 harvest. The current bottling contract requires a minimum of 200,000 cases at $2.40 per case to be bottled in a one year period. 57 Litigation From time to time, the Company may be subject to various litigation matters arising in the ordinary course of business. Other than discussed below, the Company is not aware of any current pending legal matters or claims, individually or in the aggregate, that are expected to have a material adverse impact on the Company’s consolidated financial position, results of operations, or cash flows. On January 29, 2016, Mendocino Wine Group (“MWG”) filed a complaint against Phil Hurst (“Hurst”) and H.D.D., LLC (“LLC”). The complaint alleges that, prior to January 2012, Hurst and LLC aided and abetted Paul Dolan in his alleged breach of fiduciary duties to MWG and that they interfered with Dolan's contract with Thornhill Management Company (the manager of MWG), and aided and abetted Dolan's interference with MWG's economic advantage. LLC denies the claims, denies all wrongdoing, and denies that they caused any harm to MWG. On November 10, 2016, the Court granted MWG’s Motion to Consolidate the Hurst/LLC case with a second complaint MWG filed against a law firm for legal malpractice and breach of fiduciary duty. The Court ruled the cases were sufficiently related and should be tried together. A new trial date has been set for November 3, 2017. No amount has been recorded in the condensed consolidated financial statements related to this suit. The Company settled outstanding litigation related to the lease of one of its tasting rooms and a winery production facility, in exchange for payment of $ 1.0 0.7 0.3 0.3 1.0 0.1 0.1 Exchange and Tax Receivable Agreement The Company has an exchange agreement with the existing owners of the LLC, several of whom are directors and/or officers. Under the exchange agreement, each LLC member (and certain permitted transferees thereof) may (subject to the terms of the exchange agreement), exchange their LLC Units for shares of Class A common stock of the Company on a one-for-one basis, subject to customary conversion rate adjustments for stock splits, stock dividends and reclassifications, or for cash, at the Company’s election. In connection with the exchange agreement, the Company has a tax receivable agreement (“TRA”) with the LLC members. The agreement provides for the payment from time to time, as “corporate taxpayer,” to holders of LLC Units of 90 Indemnification From time to time the Company enters into certain types of contracts that contingently require it to indemnify various parties against claims from third-parties. Historically, the Company has not been required to make payments under these obligations, and no liabilities have been recorded at December 31, 2016 and June 30, 2016 for these obligations on the consolidated balance sheets.

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS	6 Months Ended
	Dec. 31, 2016
Discontinued Operations and Disposal Groups [Abstract]
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]	NOTE 6 – DISCONTINUED OPERATIONS On January 25, 2016, the LLC sold its fifty percent interest in The Wine Spies, LLC (“Wine Spies”) with an effective date of December 31, 2015. The results from Wine Spies, which were previously consolidated, have been deconsolidated in the condensed consolidated financial statements. The gain on the sale along with the prior year results have been recorded in the consolidated statement of operations as part of discontinued operations. 0.05

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	NOTE 7 – STOCK-BASED COMPENSATION Equity Incentive Plan The Company has granted restricted stock awards, stock options and restricted stock units to employees, directors and non-employees under its 2012 Stock Incentive Plan. As of December 31, 2016, the 2012 Plan has 1.0 0.1 Number Weighted Avg Grant Weighted Avg Aggregate Intrinsic Outstanding at June 30, 2016 5,263 $ 3.80 - $ 9 Granted - - - - Released - - - - Forfeited, cancelled or expired - - - - Outstanding at December 31, 2016 5,263 $ 3.80 1.00 $ 9 RSAs vested 2,632 3.80 - 5 Expected to vest at December 31, 2016 2,631 $ 3.80 1.00 $ 9 Number Weighted Avg Grant Weighted Avg Aggregate Intrinsic Outstanding at June 30, 2016 88,930 $ 3.30 - $ 158 Granted - - - - Released (45,180) 1.66 - 80 Vested - - - - Forfeited, cancelled or expired (43,750) 5.00 - 78 Outstanding at December 31, 2016 - $ - - $ - Expected to vest at December 31, 2016 - $ - - $ - Number Weighted Avg Grant Weighted Avg Aggregate Intrinsic Outstanding at June 30, 2016 465,000 $ 2.95 - $ (542) Granted 70,000 1.64 - 10 Forfeited, cancelled or expired (175,000) 3.58 - (314) Outstanding at December 31, 2016 360,000 $ 2.39 8.90 $ (218) Options Vested 147,500 $ 3.50 (253) Options Non-Vested 212,500 $ 1.61 - $ 36 Options Exercisable 147,500 $ 3.50 - (253) Three Months Ended Six Months Ended December 31, December 31, (in thousands) 2016 2015 2016 2015 Sales and marketing $ 10 $ 7 $ 20 $ 19 General and administrative 46 78 131 153 Total stock-based compensation $ 56 $ 85 $ 151 $ 172

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	6 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	NOTE 8 – FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The carrying amount reflected in the condensed consolidated balance sheets of financial assets and liabilities are all categorized as Level 1. They include cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, which approximated their fair values due to the short-term nature of these financial assets and liabilities. The carrying amount of the Company’s debt approximates its fair value based on prevailing interest rates and time to maturity. In October 2012, the Company executed an interest rate swap obligation that was measured using observable inputs such as the LIBOR and Ten-year Treasury interest rates, and therefore has been categorized as Level 2. This derivative is not designated as a hedging instrument and has been recorded at fair value in the condensed consolidated balance sheets. Changes in the fair value of this instrument have been recognized in the condensed consolidated statements of operations in other expense. The maturity date of the swap is May 31, 2022. At December 31, 2016 and June 30, 2016, the interest rate swap balance was $ 0.008

INCOME TAXES

INCOME TAXES	6 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	NOTE 9 – INCOME TAXES For the six months ended December 31, 2016, the Company recorded income tax expense of $. 002 1 · A rate benefit attributable to the fact that HDD operates as a limited liability company which is not subject to federal or state income tax. Accordingly, a portion of the earnings are not subject to corporate level taxes. · Operating losses for the periods or utilization of net operating loss carryforwards. · Recording a full valuation allowance against net deferred tax assets as the Company has determined that it is more likely than not that the future tax benefits would not be realized. The Company did not record a deferred tax asset as of December 31, 2016. There were no unrecognized tax benefits at December 31, 2016 and the Company did not incur any income tax related interest expense or penalties related to uncertain tax positions.

SIGNIFICANT CUSTOMER INFORMATIO

SIGNIFICANT CUSTOMER INFORMATION, SEGMENT REPORTING AND GEOGRAPHIC INFORMATION	6 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
Segment Reporting Disclosure [Text Block]	NOTE 10 – SIGNIFICANT CUSTOMER INFORMATION, SEGMENT REPORTING AND GEOGRAPHIC INFORMATION The Company’s primary reporting segments are identified as wholesale and direct to consumer. Wholesale sales include the retail exclusive brand label model and other brands sold through the three-tier distribution system. Direct to consumer sales occur through the Company’s tasting rooms and wine clubs. Operating and other expenses are not allocated between operating segments; therefore, operating and net income (loss) information for the respective segments is not available. In addition, discrete financial information related to segment specific assets is not available. Sales and cost of sales are reported by segment. Three Months Ended December 31, (in thousands) Wholesale Direct to Consumer Total 2016 2015 2016 2015 2016 2015 Net Sales $ 3,951 $ 6,852 $ 1,786 $ 1,654 $ 5,737 $ 8,506 Cost of Sales 3,064 5,272 636 594 3,700 5,866 Gross Profit $ 887 $ 1,580 $ 1,150 $ 1,060 $ 2,037 $ 2,640 Gross Profit % 22.4 % 23.1 % 64.4 % 64.1 % 35.5 % 31.0 % Six Months Ended December 31, (in thousands) Wholesale Direct to Consumer Total 2016 2015 2016 2015 2016 2015 Net Sales $ 8,461 $ 11,960 $ 3,161 $ 2,915 $ 11,622 $ 14,875 Cost of Sales 6,603 9,072 1,153 1,014 7,756 10,086 Gross Profit $ 1,858 $ 2,888 $ 2,008 $ 1,901 $ 3,866 $ 4,789 Gross Profit % 22.0 % 24.1 % 63.5 % 65.2 % 33.3 % 32.2 % Significant Customer Information: The following tables set forth concentrations of wholesale sales and accounts receivable as a percent of each total: Percentage of Total Percentage of Wholesale Sales Accounts Receivable Three Months Ended Six Months Ended December 31, December 31, December 31, 2016 2015 2016 2015 2016 2015 Customer A 28 % 44 % 21 % 41 % 35 % 53 % Customer B 26 % 14 % 32 % 19 % 9 % 18 % International sales were $ 0.2 0.5 0.2 0.5

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Dec. 31, 2016
Subsequent Events [Abstract]
Subsequent Events [Text Block]	NOTE 11 – SUBSEQUENT EVENTS The Company has evaluated all subsequent event activity through the issue date of these condensed consolidated financial statements and concluded that no additional subsequent events have occurred that would require recognition in the condensed consolidated financial statements or disclosure in the notes to the condensed consolidated financial statements.

BASIS OF PRESENTATION AND SIG17

BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation The unaudited interim condensed consolidated financial statements include the results of Truett-Hurst, Inc. (“THI”) and its subsidiary H.D.D. LLC (“LLC”). They have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with general instructions for quarterly reports filed on Form 10-Q and Article 8 of Regulation S-X. THI consolidates the financial results of the LLC and records a noncontrolling interest representing the portion of equity ownership in the LLC that is not attributable to THI. On January 25, 2016, the LLC sold its fifty percent interest in The Wine Spies, LLC (“Wine Spies”) with an effective date of December 31, 2015. The results from Wine Spies, which were previously consolidated, have been deconsolidated in the unaudited interim condensed consolidated financial statements. The gain on the sale along with the current year results have been recorded in the condensed consolidated statements of operations as part of discontinued operations. The accompanying unaudited condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. The accompanying unaudited condensed consolidated financial statements were prepared on the same basis as the audited financial statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2016, and, in the opinion of management, these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented. The operating results for the interim period presented are not necessarily indicative of the results expected for the full fiscal year. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Annual Report on Form 10-K for the fiscal year ended June 30, 2016 filed with the SEC on September 28, 2016. Quantities or results referred to as “to date” or “as of this date” mean as of or to December 31, 2016, unless otherwise specifically noted. References to “FY” or “fiscal year” refer to the fiscal year ending on June 30 th
Use of Estimates, Policy [Policy Text Block]	Critical Accounting Policies and Estimates There have been no material changes to the critical accounting policies and estimates previously disclosed in the Annual Report on Form 10-K for the fiscal year ended June 30, 2016.
Reclassification, Policy [Policy Text Block]	Reclassifications Certain prior period amounts in the condensed consolidated financial statements and notes thereto have been reclassified to conform to the current year presentation. These reclassifications had no effect on the reported consolidated results of continuing operations.
New Accounting Pronouncements, Policy [Policy Text Block]	Accounting Pronouncements In November 2015, the FASB issued ASU No. 2015-17: Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. In February 2016, the FASB issued ASU No. 2016-02: Leases (Topic 842). In March 2016, the FASB issued ASU No. 2016-09: Improvements to Employee Share-Based Payment Accounting Compensation – Stock Compensation. In August 2016, the FASB issued ASU No. 2016-15: Statement of Cash Flows (Topic 230) – Classification of Certain Cash Receipts and Cash Payments In January 2017, the FASB issued ASU No. 2017-01: Business Combinations (Topic 805) – Clarifying the Definition of a Business.

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
Schedule of Inventory, Current [Table Text Block]	Inventories comprise: December 31, 2016 June 30, 2016 (in thousands) Grapes and bulk wine $ 7,757 $ 8,413 Bottled wine 11,779 11,262 Bottling materials and other 242 322 19,778 19,997 Less: inventory reserves (23) (79) Total inventories $ 19,755 $ 19,918

PROPERTY AND EQUIPMENT, net (Ta

PROPERTY AND EQUIPMENT, net (Tables)	6 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment [Table Text Block]	Property and equipment, net comprise: December 31, 2016 June 30, 2016 (in thousands) Land and land improvements $ 3,260 $ 3,231 Building and improvements 1,402 1,380 Machinery and equipment 1,985 1,935 Vineyard development 554 554 Vineyard equipment 88 88 Furniture and fixtures 286 262 Leasehold improvements 24 190 Vehicles 85 85 7,684 7,725 Less: accumulated depreciation and amortization (2,247) (2,142) Total property and equipment, net $ 5,437 $ 5,583

BORROWINGS (Tables)

BORROWINGS (Tables)	6 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Schedule Of Long Term Debt Borrowings [Table Text Block]	Long term debt comprises: December 31, 2016 June 30, 2016 (in thousands except payment information) Long term debt: Note 1 (1) $ 2,784 $ 2,851 Note 2 (2) 83 120 Note 3 (3) 201 244 Note 4 (4) - 57 Note 5 (5) 332 392 Note 6 (6) 349 - 3,749 3,664 Less: current maturities (516) (475) Total long term debt $ 3,233 $ 3,189 (1) Note payable to a bank, secured by a deed of trust on property, payable monthly with principal payments of $ 11,270 May 31, 2022 2.25 (2) Note payable to a bank, secured by equipment, payable monthly with principal and interest payments of $ 6,535 January 15, 2018 3.75 (3) Note payable to a bank, secured by equipment, payable monthly with principal and interest payments of $ 7,783 March 1, 2019 3.75 (4) On November 30, 2014, the Company acquired the unrestricted use of the Stonegate trademark in exchange for a trademark release payment which is to be made over time and is accounted for as a note payable. The note payable has three equal installments: a) within five days of November 30, 2014, b) on October 31, 2015, and c) on July 31, 2016. The note does not accrue interest outstanding on the principal. An imputed interest rate of 5.5 (5) Note payable to a bank, secured by equipment, payable monthly with principal and interest payments of $ 11,267 July 1, 2019 3.90 (6) Note payable to a bank, secured by equipment, payable monthly with principal and interest payments of $ 8,729 July 1, 2020 3.95
Schedule Of Future Principal And Interest Payments [Table Text Block]	Future principal and interest payments for the long term debt as of December 31, 2016 are as follows: Years ending June 30, (in thousands) 2017 (remaining six months) $ 256 2018 491 2019 434 2020 249 2021 144 Thereafter 2,175 3,749 Add: estimated interest payments 579 Total future principal and interest payments $ 4,328

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block]	Future lease commitments are: Years ending June 30, (in thousands) 2017 (remaining six months) $ 96 2018 84 2019 90 2020 31 Thereafter - Total future lease payments $ 301
Purchase Commitment, Excluding Long-term Commitment [Table Text Block]	Future minimum grape and bulk wine inventory purchase commitments are as follows: Years ending June 30, Third-Parties Related Parties Total (in thousands) 2017 $ 1,652 $ - $ 1,652 2018 531 57 588 2019 310 - 310 Thereafter - - - Total grape and bulk purchase commitments $ 2,493 $ 57 $ 2,550

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Dec. 31, 2016
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]	A summary of the activity for stock options is presented below: Number Weighted Avg Grant Weighted Avg Aggregate Intrinsic Outstanding at June 30, 2016 465,000 $ 2.95 - $ (542) Granted 70,000 1.64 - 10 Forfeited, cancelled or expired (175,000) 3.58 - (314) Outstanding at December 31, 2016 360,000 $ 2.39 8.90 $ (218) Options Vested 147,500 $ 3.50 (253) Options Non-Vested 212,500 $ 1.61 - $ 36 Options Exercisable 147,500 $ 3.50 - (253)
Schedule Of Stock Based Compensation Expense [Table Text Block]	The following table summarizes stock-based compensation included in the condensed consolidated statements of operations for the three and six months ended December 31, 2016 and December 31, 2015: Three Months Ended Six Months Ended December 31, December 31, (in thousands) 2016 2015 2016 2015 Sales and marketing $ 10 $ 7 $ 20 $ 19 General and administrative 46 78 131 153 Total stock-based compensation $ 56 $ 85 $ 151 $ 172
Restricted Stock Units (RSUs) [Member]
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]	A summary of the activity for restricted stock units is presented below: Number Weighted Avg Grant Weighted Avg Aggregate Intrinsic Outstanding at June 30, 2016 88,930 $ 3.30 - $ 158 Granted - - - - Released (45,180) 1.66 - 80 Vested - - - - Forfeited, cancelled or expired (43,750) 5.00 - 78 Outstanding at December 31, 2016 - $ - - $ - Expected to vest at December 31, 2016 - $ - - $ -
Restricted Stock [Member] | Discontinued Operations [Member]
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]	A summary of the activity for restricted stock awards is presented below: Number Weighted Avg Grant Weighted Avg Aggregate Intrinsic Outstanding at June 30, 2016 5,263 $ 3.80 - $ 9 Granted - - - - Released - - - - Forfeited, cancelled or expired - - - - Outstanding at December 31, 2016 5,263 $ 3.80 1.00 $ 9 RSAs vested 2,632 3.80 - 5 Expected to vest at December 31, 2016 2,631 $ 3.80 1.00 $ 9

SIGNIFICANT CUSTOMER INFORMAT23

SIGNIFICANT CUSTOMER INFORMATION, SEGMENT REPORTING AND GEOGRAPHIC INFORMATION (Tables)	6 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment [Table Text Block]	The following tables reflect net sales, cost of sales and gross profit by segment for continuing operations for each of the three and six months ended December 31, 2016 and 2015, respectively: Three Months Ended December 31, (in thousands) Wholesale Direct to Consumer Total 2016 2015 2016 2015 2016 2015 Net Sales $ 3,951 $ 6,852 $ 1,786 $ 1,654 $ 5,737 $ 8,506 Cost of Sales 3,064 5,272 636 594 3,700 5,866 Gross Profit $ 887 $ 1,580 $ 1,150 $ 1,060 $ 2,037 $ 2,640 Gross Profit % 22.4 % 23.1 % 64.4 % 64.1 % 35.5 % 31.0 % Six Months Ended December 31, (in thousands) Wholesale Direct to Consumer Total 2016 2015 2016 2015 2016 2015 Net Sales $ 8,461 $ 11,960 $ 3,161 $ 2,915 $ 11,622 $ 14,875 Cost of Sales 6,603 9,072 1,153 1,014 7,756 10,086 Gross Profit $ 1,858 $ 2,888 $ 2,008 $ 1,901 $ 3,866 $ 4,789 Gross Profit % 22.0 % 24.1 % 63.5 % 65.2 % 33.3 % 32.2 %
Schedule Of Concentrations Of Wholesale Sales And Accounts Receivable As A Percent Of Each [Table Text Block]	The following tables set forth concentrations of wholesale sales and accounts receivable as a percent of each total: Percentage of Total Percentage of Wholesale Sales Accounts Receivable Three Months Ended Six Months Ended December 31, December 31, December 31, 2016 2015 2016 2015 2016 2015 Customer A 28 % 44 % 21 % 41 % 35 % 53 % Customer B 26 % 14 % 32 % 19 % 9 % 18 %

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Jun. 30, 2016
Inventory [Line Items]
Grapes and bulk wine	$ 7,757	$ 8,413
Bottled wine	11,779	11,262
Bottling materials and other	242	322
Inventory, Gross	19,778	19,997
Less: inventory reserves	(23)	(79)
Total inventories	$ 19,755	$ 19,918

PROPERTY AND EQUIPMENT, net (De

PROPERTY AND EQUIPMENT, net (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Jun. 30, 2016
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 7,684	$ 7,725
Less: accumulated depreciation and amortization	(2,247)	(2,142)
Total property and equipment, net	5,437	5,583
Land and Land Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	3,260	3,231
Building and improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	1,402	1,380
Machinery and equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	1,985	1,935
Vineyard development [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	554	554
Vineyard equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	88	88
Furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	286	262
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	24	190
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 85	$ 85

PROPERTY AND EQUIPMENT, net (26

PROPERTY AND EQUIPMENT, net (Details Textual) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Depreciation, Depletion and Amortization, Nonproduction, Total	$ 0.2	$ 0.1	$ 0.4	$ 0.3

BORROWINGS (Details)

BORROWINGS (Details) - USD ($) $ in Thousands		Dec. 31, 2016	Jun. 30, 2016
Long term debt:
Total notes payable		$ 3,749	$ 3,664
Less: current maturities		(516)	(475)
Total long term debt		3,233	3,189
Notes Payable One [Member]
Long term debt:
Total notes payable	[1]	2,784	2,851
Notes Payable Two [Member]
Long term debt:
Total notes payable	[2]	83	120
Notes Payable Three [Member]
Long term debt:
Total notes payable	[3]	201	244
Notes Payable Four [Member]
Long term debt:
Total notes payable	[4]	0	57
Notes Payable Five [Member]
Long term debt:
Total notes payable	[5]	332	392
Notes Payable Six [Member]
Long term debt:
Total notes payable	[6]	$ 349	$ 0
[1]	Note payable to a bank, secured by a deed of trust on property, payable monthly with principal payments of $11,270 plus interest, matures May 31, 2022, variable interest of 2.25% above LIBOR.
[2]	Note payable to a bank, secured by equipment, payable monthly with principal and interest payments of $6,535, matures January 15, 2018 at 3.75% interest.
[3]	Note payable to a bank, secured by equipment, payable monthly with principal and interest payments of $7,783, matures March 1, 2019; at 3.75% interest.
[4]	On November 30, 2014, the Company acquired the unrestricted use of the Stonegate trademark in exchange for a trademark release payment which is to be made over time and is accounted for as a note payable. The note payable has three equal installments: a) within five days of November 30, 2014, b) on October 31, 2015, and c) on July 31, 2016. The note does not accrue interest outstanding on the principal. An imputed interest rate of 5.5% was assessed under GAAP and the impact was considered immaterial.
[5]	Note payable to a bank, secured by equipment, payable monthly with principal and interest payments of $11,267, matures July 1, 2019; at 3.90% interest.
[6]	Note payable to a bank, secured by equipment, payable monthly with principal and interest payments of $8,729, matures July 1, 2020; at 3.95% interest.

BORROWINGS (Details 1)

BORROWINGS (Details 1) - USD ($) $ in Thousands	Dec. 31, 2016	Jun. 30, 2016
Long Term Debt, Fiscal Year Maturity [Line Items]
2017 (remaining six months)	$ 256
2,018	491
2,019	434
2,020	249
2,021	144
Thereafter	2,175
Long-term Debt, Total	3,749	$ 3,664
Add: estimated interest payments	579
Total future principal and interest payments	$ 4,328

BORROWINGS (Details Textual)

BORROWINGS (Details Textual) - USD ($) $ in Thousands	1 Months Ended	6 Months Ended
	Jul. 31, 2016	Dec. 31, 2016
Equipment Line Of Credit [Member]
Line of Credit Facility, Interest Rate Description		interest at a rate of 2.25% above the floating One-Month LIBOR Rate.
Line of Credit Facility, Maximum Borrowing Capacity		$ 500
Foreign Line of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity		$ 100
Revolving Credit Facility [Member]
Debt Instrument, Maturity Date	Jul. 31, 2017
Debt Instrument, Interest Rate During Period		2.25%
Line of Credit Facility, Maximum Borrowing Capacity		$ 10,000
Notes Payable To Bank One [Member]
Debt Instrument, Maturity Date		May 31, 2022
Debt Instrument, Periodic Payment,Interest		$ 11,270
Debt Instrument, Interest Rate During Period		2.25%
Notes Payable To Bank Two [Member]
Debt Instrument, Maturity Date		Jan. 15, 2018
Debt Instrument, Periodic Payment,Interest		$ 6,535
Debt Instrument, Interest Rate During Period		3.75%
Notes Payable To Bank Three [Member]
Debt Instrument, Maturity Date		Mar. 1, 2019
Debt Instrument, Periodic Payment,Interest		$ 7,783
Debt Instrument, Interest Rate During Period		3.75%
Notes Payable To Bank Four [Member]
Debt Instrument, Interest Rate During Period		5.50%
Notes Payable To Bank Five [Member]
Debt Instrument, Maturity Date		Jul. 1, 2019
Debt Instrument, Periodic Payment,Interest		$ 11,267
Debt Instrument, Interest Rate During Period		3.90%
Notes Payable To Bank Six [Member]
Debt Instrument, Maturity Date		Jul. 1, 2020
Debt Instrument, Periodic Payment,Interest		$ 8,729
Debt Instrument, Interest Rate During Period		3.95%

COMMITMENTS AND CONTINGENCIES30

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	Jun. 30, 2016USD ($)
Line of Credit Facility [Line Items]
2017 (remaining six months)	$ 96
2,018	84
2,019	90
2,020	31
Thereafter	0
Total future lease payments	$ 301

COMMITMENTS AND CONTINGENCIES31

COMMITMENTS AND CONTINGENCIES (Details 1) $ in Thousands	Jun. 30, 2016USD ($)
Purchase Obligation, Fiscal Year Maturity [Line Items]
2,017	$ 1,652
2,018	588
2,019	310
Thereafter	0
Total grape and bulk purchase commitments	2,550
Third Parties [Member]
Purchase Obligation, Fiscal Year Maturity [Line Items]
2,017	1,652
2,018	531
2,019	310
Thereafter	0
Total grape and bulk purchase commitments	2,493
Related Parties [Member]
Purchase Obligation, Fiscal Year Maturity [Line Items]
2,017	0
2,018	57
2,019	0
Thereafter	0
Total grape and bulk purchase commitments	$ 57

COMMITMENTS AND CONTINGENCIES32

COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Commitments And Contingencies [Line Items]
Operating Leases, Rent Expense, Net	$ 90	$ 100	$ 200	$ 200
Tax Benefit Tax Receivable Percent			90.00%
Inventory, Finished Goods, Gross	$ 1,800		$ 1,800
Service Agreement Description			The Company enters into various contracts with third-party service providers for grape crushing, wine storage, and bottling. The costs are recorded in the period for which the service is provided. The actual costs related to custom crush services are based on volume. The Companys current contracts for custom crush services cover the 2016 harvest. The current bottling contract requires a minimum of 200,000 cases at $2.40 per case to be bottled in a one year period.
Percentage Of Inventory Storage	57.00%		57.00%
Litigation Settlement, Amount			$ 1,000
Proceeds from Legal Settlements			700
Reserve For Assets Abandoned			127	$ 0
Assets under Lease, Carrying Amount	$ 100		100
Accounts Receivable, Net	300		300
Other Income [Member]
Commitments And Contingencies [Line Items]
Gain (Loss) Related to Litigation Settlement			1,000
Accounts Receivable [Member]
Commitments And Contingencies [Line Items]
Escrow Deposit	300		300
H.D.D. LLC [Member]
Commitments And Contingencies [Line Items]
Reserve For Assets Abandoned			100
Related Party [Member]
Commitments And Contingencies [Line Items]
Inventory, Work in Process, Gross	$ 30		$ 30

DISCONTINUED OPERATIONS (Detail

DISCONTINUED OPERATIONS (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income Loss From Discontinued Operations Net Of Tax	$ 0	$ 30	$ 0	$ 45
Wine Spies, LLC [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income Loss From Discontinued Operations Net Of Tax			$ 50

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Employee Stock Option [Member]
Number of Shares, Outstanding at June 30, 2016	465,000
Number of Shares, Granted	70,000
Number of Shares, Forfeited, cancelled or expired	(175,000)
Number of Shares, Outstanding at December 31, 2016	360,000
Number of Shares, Expected to vest at December 31, 2016	147,500
Number of Shares, Options Vested	147,500
Number of Shares, Options Non-Vested	212,500
Number of Shares, Options Exercisable	147,500
Weighted Avg Grant Date Fair Value per Share, Outstanding at June 30, 2016	$ 2.95
Weighted Avg Grant Date Fair Value per Share, Granted	1.64
Weighted Avg Grant Date Fair Value per Share, Forfeited, cancelled or expired	3.58
Weighted Avg Grant Date Fair Value per Share, Outstanding at December 31, 2016	2.39
Weighted Avg Grant Date Fair Value per Share, Expected to vest at December 31, 2016	3.5
Weighted Avg Grant Date Fair Value Per Share, Options Vested	3.5
Weighted Avg Grant Date Fair Value per Share, Options Non-Vested	1.61
Weighted Avg Grant Date Fair Value per Share, Options Exercisable	$ 3.5
Weighted Avg Contractual Term in Years, Outstanding	8 years 10 months 24 days	0 years
Weighted Avg Contractual Term in Years, Granted	0 years
Weighted Avg Contractual Term in Years, Forfeited, cancelled or expired	0 years
Weighted Avg Contractual Term in Years, Options Non-Vested	0 years
Weighted Avg Contractual Term in Years, Options Exercisable	0 years
Aggregate Intrinsic Value, Outstanding at June 30, 2016	$ (542)
Aggregate Intrinsic Value, Granted	10
Aggregate Intrinsic Value, Forfeited, cancelled or expired	(314)
Aggregate Intrinsic Value, Outstanding at June 30, 2016	(218)
Aggregate Intrinsic Value, Options Vested	(253)
Aggregate Intrinsic Value, Options Non-Vested	36
Aggregate Intrinsic Value, Options Exercisable	$ (253)
Restricted Stock Units (RSUs) [Member]
Number of Shares, Outstanding at June 30, 2016	88,930
Number of Shares, Granted	0
Number of Shares, Released	(45,180)
Number of Shares, Forfeited, cancelled or expired	(43,750)
Number of Shares, Outstanding at December 31, 2016	0
Number of Shares, RSAs Vested	0
Number of Shares, Expected to vest at December 31, 2016	0
Number of Shares, Options Vested	0
Weighted Avg Grant Date Fair Value per Share, Outstanding at June 30, 2016	$ 3.3
Weighted Avg Grant Date Fair Value per Share, Granted	0
Weighted Avg Grant Date Fair Value per Share, Released	1.66
Weighted Avg Grant Date Fair Value per Share, Forfeited, cancelled or expired	5
Weighted Avg Grant Date Fair Value per Share, Outstanding at December 31, 2016	0
Weighted Avg Grant Date Fair Value per Share, RSAs Vested	0
Weighted Avg Grant Date Fair Value per Share, Expected to vest at December 31, 2016	0
Weighted Avg Grant Date Fair Value Per Share, Options Vested	$ 0
Weighted Avg Contractual Term in Years, Outstanding	0 years	0 years
Weighted Avg Contractual Term in Years, Granted	0 years
Weighted Avg Contractual Term in Years, Released	0 years
Weighted Avg Contractual Term in Years, Forfeited, cancelled or expired	0 years
Weighted Avg Contractual Term in Years, RSAs Vested	0 years
Weighted Avg Contractual Term in Years, Expected to vest at December 31, 2016	0 years
Aggregate Intrinsic Value, Outstanding at June 30, 2016	$ 158
Aggregate Intrinsic Value, Granted	0
Aggregate Intrinsic Value, Released	80
Aggregate Intrinsic Value, Forfeited, cancelled or expired	78
Aggregate Intrinsic Value, Outstanding at June 30, 2016	0
Aggregate Intrinsic Value, RSAs Vested	0
Aggregate Intrinsic Value, Expected to vest at December 31, 2016	$ 0
Restricted Stock [Member]
Number of Shares, Outstanding at June 30, 2016	5,263
Number of Shares, Granted	0
Number of Shares, Released	0
Number of Shares, Forfeited, cancelled or expired	0
Number of Shares, Outstanding at December 31, 2016	5,263
Number of Shares, RSAs Vested	2,632
Number of Shares, Expected to vest at December 31, 2016	2,631
Number of Shares, Options Vested	2,631
Weighted Avg Grant Date Fair Value per Share, Outstanding at June 30, 2016	$ 3.8
Weighted Avg Grant Date Fair Value per Share, Granted	0
Weighted Avg Grant Date Fair Value per Share, Released	0
Weighted Avg Grant Date Fair Value per Share, Forfeited, cancelled or expired	0
Weighted Avg Grant Date Fair Value per Share, Outstanding at December 31, 2016	3.8
Weighted Avg Grant Date Fair Value per Share, RSAs Vested	3.80
Weighted Avg Grant Date Fair Value per Share, Expected to vest at December 31, 2016	3.8
Weighted Avg Grant Date Fair Value Per Share, Options Vested	$ 3.8
Weighted Avg Contractual Term in Years, Outstanding	1 year	0 years
Weighted Avg Contractual Term in Years, Granted	0 years
Weighted Avg Contractual Term in Years, Released	0 years
Weighted Avg Contractual Term in Years, Forfeited, cancelled or expired	0 years
Weighted Avg Contractual Term in Years, RSAs Vested	0 years
Weighted Avg Contractual Term in Years, Expected to vest at December 31, 2016	1 year
Aggregate Intrinsic Value, Outstanding at June 30, 2016	$ 9
Aggregate Intrinsic Value, Granted	0
Aggregate Intrinsic Value, Released	0
Aggregate Intrinsic Value, Forfeited, cancelled or expired	0
Aggregate Intrinsic Value, Outstanding at June 30, 2016	9
Aggregate Intrinsic Value, RSAs Vested	5
Aggregate Intrinsic Value, Expected to vest at December 31, 2016	$ 9

STOCK-BASED COMPENSATION (Det35

STOCK-BASED COMPENSATION (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 56	$ 85	$ 151	$ 172
Selling and Marketing Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	10	7	20	19
General and Administrative Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense	$ 46	$ 78	$ 131	$ 153

STOCK-BASED COMPENSATION (Det36

STOCK-BASED COMPENSATION (Details Textual) - 2012 Stock Incentive Plan [Member] shares in Millions	Dec. 31, 2016shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance	1
Increase In Common Stock Capital Shares Reserved For Future Issuance	0.1

FAIR VALUE OF FINANCIAL INSTR37

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details Textual) - Interest Rate Swap [Member] - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2016	Jun. 30, 2016
Fair Value By Balance Sheet Group [Line Items]
Debt Instrument, Maturity Date	May 31, 2022
Fair Value, Inputs, Level 2 [Member]
Fair Value By Balance Sheet Group [Line Items]
Accrued Liabilities	$ 8	$ (100)

INCOME TAXES (Details Textual)

INCOME TAXES (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate [Line Items]
Effective Income Tax Rate Reconciliation, Percent			1.00%
Income Tax Expense (Benefit)	$ 1	$ 1	$ 2	$ 1

SIGNIFICANT CUSTOMER INFORMAT39

SIGNIFICANT CUSTOMER INFORMATION, SEGMENT REPORTING AND GEOGRAPHIC INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Net Sales	$ 5,737	$ 8,506	$ 11,622	$ 14,875
Cost of Sales	3,700	5,866	7,756	10,086
Gross Profit	$ 2,037	$ 2,640	$ 3,866	$ 4,789
Gross Profit %	35.50%	31.00%	33.30%	32.20%
Wholesale [Member]
Segment Reporting Information [Line Items]
Net Sales	$ 3,951	$ 6,852	$ 8,461	$ 11,960
Cost of Sales	3,064	5,272	6,603	9,072
Gross Profit	$ 887	$ 1,580	$ 1,858	$ 2,888
Gross Profit %	22.40%	23.10%	22.00%	24.10%
Direct To Consumer [Member]
Segment Reporting Information [Line Items]
Net Sales	$ 1,786	$ 1,654	$ 3,161	$ 2,915
Cost of Sales	636	594	1,153	1,014
Gross Profit	$ 1,150	$ 1,060	$ 2,008	$ 1,901
Gross Profit %	64.40%	64.10%	63.50%	65.20%

SIGNIFICANT CUSTOMER INFORMAT40

SIGNIFICANT CUSTOMER INFORMATION, SEGMENT REPORTING AND GEOGRAPHIC INFORMATION (Details 1)	3 Months Ended		6 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Wholesale [Member] | Customer A [Member]
Revenue, Major Customer [Line Items]
Concentration Risk Percentage	28.00%	44.00%	21.00%	41.00%
Wholesale [Member] | Customer B [Member]
Revenue, Major Customer [Line Items]
Concentration Risk Percentage	26.00%	14.00%	32.00%	19.00%
Accounts Receivable [Member] | Customer A [Member]
Revenue, Major Customer [Line Items]
Concentration Risk Percentage			35.00%	53.00%
Accounts Receivable [Member] | Customer B [Member]
Revenue, Major Customer [Line Items]
Concentration Risk Percentage			9.00%	18.00%

SIGNIFICANT CUSTOMER INFORMAT41

SIGNIFICANT CUSTOMER INFORMATION, SEGMENT REPORTING AND GEOGRAPHIC INFORMATION (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Revenue, Net, Total	$ 5,737	$ 8,506	$ 11,622	$ 14,875
International Sales [Member]
Segment Reporting Information [Line Items]
Revenue, Net, Total	$ 200	$ 200	$ 500	$ 500