Microphase 10-Q 14 Nov 16 2017 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Sep. 30, 2016	Nov. 11, 2016
Document Information [Line Items]
Entity Registrant Name	Microphase Corp
Entity Central Index Key	1,574,969
Current Fiscal Year End Date	--06-30
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		6,882,461
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,017

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2016	Jun. 30, 2016
CURRENT ASSETS
Cash	$ 16,389	$ 81,224
Accounts receivable, net of allowance of $5,000 September 30, 2016 and June 30, 2016	367,019	1,092,482
Inventory	753,059	872,014
Due from related parties	33,295	33,295
Prepaid and other current assets	3,262	63,742
TOTAL CURRENT ASSETS	1,173,024	2,142,757
Property and equipment, net	140,985	158,979
OTHER ASSETS
Cash - restricted	100,000	100,000
Intangible assets	2,625,292	2,629,170
Marketable securities	385,667	200,000
Deferred offering costs	400,000	260,000
Other assets-lease deposit	43,479	43,479
TOTAL OTHER ASSETS	3,554,438	3,232,649
TOTAL ASSETS	4,868,447	5,534,385
CURRENT LIABILITIES
Credit Facility - Revolving Loan	844,926	1,474,129
Accounts payable	534,567	553,331
Accrued expenses	1,187,217	1,134,729
Deferred Revenue & Customer Deposits	73,200	117,800
Notes Payable - Related Parties, current portion	212,490	137,150
Asset Acquisition Note Payable-current portion	975,345	975,345
Equity Lines of Credit-current portion	38,236	38,132
Other termed debts - current portion	13,714	13,714
TOTAL CURRENT LIABILITIES	3,879,695	4,444,330
Other termed debts, net of current portion	324,009	26,975
Notes Payable - Related Parties, net of current portion	186,639	257,857
Asset Acquisition Note Payable, net of current portion	1,045,080	1,045,080
Equity Lines of Credit, net of current portion	277,896	281,161
Deferred Lease Obligation	95,441	81,189
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' DEFICIT
6% cumulative preferred stock, $100 par value, 200,000 shares authorized, 15,382 shares issued and outstanding on September 30, 2016 (unaudited) and June 30, 2016, respectively	1,538,200	1,538,200
Common stock, no par value 7,800,000 shares authorized 6,299,123 and, 6,200,789 shares issued and outstanding at September 30, 2016 (unaudited) and June 30, 2016, respectively	9,509,633	9,367,133
Additional Paid In Capital	2,432,111	2,432,111
Accumulated Other Comprehensive Income	185,667	0
Accumulated Deficit	(14,605,924)	(13,939,651)
TOTAL STOCKHOLDERS' DEFICIT	(940,313)	(602,207)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$ 4,868,447	$ 5,534,385

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	3 Months Ended	12 Months Ended
	Sep. 30, 2016	Jun. 30, 2016
Allowance for Doubtful Accounts Receivable, Current	$ 5,000	$ 5,000
Preferred Stock, Dividend Rate, Percentage	6.00%	6.00%
Preferred Stock, Par or Stated Value Per Share	$ 100	$ 100
Preferred Stock, Shares Authorized	200,000	200,000
Preferred Stock, Shares Issued	15,382	15,382
Preferred Stock, Shares Outstanding	15,382	15,382
Common Stock, Par Value	$ 0	$ 0
Common Stock, Shares Authorized	7,800,000	7,800,000
Common Stock, Shares, Issued	6,299,123	6,200,789
Common Stock, Shares, Outstanding	6,299,123	6,200,789

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Revenues	$ 1,373,064	$ 2,451,855
Cost of Sales	979,882	1,415,183
Gross Profit	393,182	1,036,672
Selling, General and Administrative Expenses (including non-cash stock related charges of $97,500 and $0 in Fiscal 2016 and 2015)	738,850	703,000
Engineering and Research expenses	207,660	206,314
Other Income (Loss)	0	2,250
Interest (Expense and Credit costs) net	(111,895)	(58,171)
Net Income (Loss) before Income Taxes	(665,223)	71,437
Income Taxes	(1,050)	(1,050)
Net Income (Loss)	$ (666,273)	$ 70,387
Basic Net income (loss) per share: (in dollars per share)	$ (0.107)	$ 0.015
Diluted Net income (loss) per share: (in dollars per share)	$ (0.107)	$ 0.011
Weighted Average Number of Shares Outstanding:
Basic (in shares)	6,201,858	4,775,306
Diluted (in shares)	6,201,858	6,122,456

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Operations (Parenthetical) - USD ($)	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Non-cash stock related charges	$ 97,500
Selling, General and Administrative Expenses [Member]
Non-cash stock related charges	$ 97,500	$ 0

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($)	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Net income (loss)	$ (666,273)	$ 70,387
Other comprehensive income (loss):
Net unrealized gain (loss) on securities available-for-sale, net of income taxes	185,667	(37,067)
Total comprehensive income (loss)	$ (480,606)	$ 33,320

Condensed Consolidated Stateme7

Condensed Consolidated Statement of Changes in Stockholders' Deficit - 3 months ended Sep. 30, 2016 - USD ($)	Total	Preferred Stock [Member]	Common Stock [Member]	Additional Paid In Capital [Member]	Other Comprehensive Loss [Member]	Accumulated Deficit [Member]
Balance at Jun. 30, 2016	$ (602,207)	$ 1,538,200	$ 9,367,133	$ 2,432,111	$ 0	$ (13,939,651)
Balance (in shares) at Jun. 30, 2016		15,382	6,200,789
Issuance of common stock and options for services	97,500		$ 97,500	0
Issuance of common stock and options for services (in shares)			65,000
Issuance of Common Stock and warrants in Private Placements, net of $5,000 costs	45,000		$ 45,000
Issuance of Common Stock and warrants in Private Placements, net of $5,000 costs (in shares)			33,334
Unrealized gain on marketable securities	185,667				185,667
Net Loss For the Three Months Ended September 30, 2016	(666,273)					(666,273)
Balance at Sep. 30, 2016	$ (940,313)	$ 1,538,200	$ 9,509,633	$ 2,432,111	$ 185,667	$ (14,605,924)
Balance (in shares) at Sep. 30, 2016		15,382	6,299,123

Condensed Consolidated Stateme8

Condensed Consolidated Statement of Changes in Stockholders' Deficit (Parenthetical)	3 Months Ended
	Sep. 30, 2016USD ($)
Private Placement [Member]
Payments of Stock Issuance Costs	$ 5,000

Condensed Consolidated Stateme9

Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash Flow Provided by (Used In) Operating Activities:
Net (Loss) Income From Operations	$ (666,273)	$ 70,387
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities:
Depreciation and amortization	21,872	23,266
Non-cash charges relating to issuance of common stock for services	97,500	0
Changes in assets and liabilities:
Accounts receivable	725,463	(224,429)
Inventories	118,955	12,755
Other current assets	60,480	(4,413)
Deferred Rent	14,252	0
Accounts payable	(158,763)	(61,823)
Accrued Expenses	56,609	98,519
Customer deposits & deferred revenue	(44,600)	0
Due to/from related parties mPhase & Edson Realty	0	(2,250)
Net cash provided by (used in) operating activities	225,495	(87,988)
Cash Flow Used in Investing Activities:
Purchase of fixed assets	0	(35,919)
Net Cash used in investing activities	0	(35,919)
Cash Flow Provided by (Used in) Financing Activities:
Proceeds from issuance of common stock	45,000	0
(Payments) Proceeds from revolving credit facility (net)	(629,203)	212,060
Payments of equity lines of credit	(3,161)	(9,090)
Payments of long-term debt	(871)	(1,858)
Proceeds from EDA loan	300,000	0
Payments of capital lease obligations	0	(3,934)
Payments of extended term arrangement	(2,095)	(1,993)
Net cash provided by (used in) financing activities	(290,330)	195,185
Net (decrease) increase in cash	(64,835)	71,278
CASH, beginning of period	81,224	127,093
CASH, end of period	$ 16,389	$ 198,371

BASIS OF PRESENTATION AND SUMMA

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	NATURE OF OPERATIONS Microphase Corporation (the “Company”) is a design to manufacture original equipment manufacturer (OEM) industry leader delivering world-class radio frequency (RF) and microwave filters, diplexers, multiplexers, detectors, switch filters, integrated assemblies and detector logarithmic video amplifiers (DLVA) to the military, aerospace and telecommunications industries. Sales to military markets represent 100 The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and pursuant to the regulations of the Securities Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the three months ending September 30, 2016 are not necessarily indicative of the results that may be expected for a full fiscal year. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries which include Microphase West LLC and Microphase Instruments, LLC, as of October 23, 2015. All intercompany accounts and transactions have been eliminated. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2016. As of June 30, 2016, we had an accumulated deficit of $ 13,939,651 602,207 14,605,924 940,313 The Company’s ability to continue as a going concern and its future success is dependent upon its ability to raise capital in the near term to: (1) satisfy its current obligations, (2) continue its research and development efforts, and (3) allow the successful wide scale development, deployment and marketing of its products. Method Years Leasehold Improvements Straight Line 7 Property held under capital leases Straight Line 5 Furniture and fixtures Straight Line 7 Machinery and equipment Straight Line 5 Computer equipment Straight Line 3 Transportation equipment Straight Line 5 GRANT INCOME — During the three months ended September 30, 2016 the Company was awarded and received the proceeds of a Small Business Express Matching Grant in an amount 100,000 the move of our California operation to Connecticut and with the development of the T & M products to be acquired in the Company’s Microphase Instruments, LLC, subsidiary. State grant funding requires a dollar for dollar match on behalf of the Company, which the Company’s obligation was considered funded in full prior to the Grant award. During the three months ended September 30, 2016 the Company recorded $ 26,800 as a reduction in Selling, General & Administrative expenses 73,200 RECLASSIFICATIONS- Certain prior year amounts have been reclassified in our Condensed Consolidated Financial Statements to conform to current year classifications EARNINGS (LOSS) PER SHARE — Basic earnings (loss) per share (“EPS”) is determined by dividing the net earnings (loss) by the weighted-average number of shares of common shares outstanding during the period. Diluted EPS is determined by dividing net earnings (loss) by the weighted average number of common shares used in the basic EPS calculation plus the number of common shares that would be issued assuming conversion of all potentially dilutive securities (such as stock options, preferred stock and convertible securities) outstanding under the treasury stock method. As of September 30, 2016 we have outstanding (i) options to purchase 75,000 15,382 1,025,467 479,129 312,420 RECENT ACCOUNTING PRONOUNCEMENTS— The Company is evaluating several pronouncements issued by the FASB which may result in the adoption by the Company of these standards in upcoming accounting periods as follows: ADOPTION OF NEW ACCOUNTING STANDARDS — On April 7, 2015, the FASB issued Accounting Standards Update 2015-03, Interest — Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires entities to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability. The guidance in Update 2015-03 (see below) does not address presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. Given the absence of authoritative guidance within Update 2015-03 for debt issuance costs related to line-of-credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement to be effective for Fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015; which for us is 1 st ASU 2014-12 — Compensation Stock-Compensation (Topic 718): Accounting for Share Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force) to be effective for Annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2015; which for us would be our 1 st ACCOUNTING STANDARDS ISSUED BUT NOT YET EFFECTIVE — The Company is evaluating several pronouncements issued by the FASB which may result in the adoption by the Company of these standards in upcoming accounting periods as follows: ASU 2014-09 — Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date-In May 2014, the FASB issued a comprehensive new revenue recognition standard that supersedes nearly all revenue recognition guidance under U.S. GAAP and supersedes some cost guidance for construction-type and production-type contracts. The guidance in this standard is principles-based, and accordingly, entities will be required to use more judgment and make more estimates than under prior guidance, including identifying contract performance obligations, estimating variable consideration to include in the contract price and allocating the transaction price to separate performance obligations. The guidance in this standard is applicable to all contracts with customers, regardless of industry-specific or transaction-specific fact patterns. Additionally, this standard provides guidance for transactions that were not previously addressed comprehensively (e.g., service revenue, contract modifications and licenses of intellectual property) and modifies guidance for multiple-element arrangements. The core principle of this standard is that entities should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. To help financial statement users better understand the nature, amount, timing and potential uncertainty of the revenue that is recognized, this standard requires significantly more interim and annual disclosures. This standard allows for either “full retrospective” adoption (application to all periods presented) or “modified retrospective” adoption (application to only the most current period presented in the financial statements, as well as certain additional required footnote disclosures). On July 9, 2015, the FASB approved a one-year deferral of the effective date, while permitting entities to elect to adopt one year earlier on the original effective date. As a result, this standard is now effective for fiscal years, and interim reporting periods within those years, beginning after December 15, 2017, which for us is our fiscal 2019. We are currently evaluating the impact this standard, if any, will have on our financial position, results of operations and cash flows. ASU 2015-11 — Inventory (Topic 330): Simplifying the Measurement of Inventory. For public business entities, the content that links to this paragraph shall be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, which for us is our first quarter of fiscal 2018. We are currently evaluating the impact this standard will have on our financial position, results of operations and cash flows. ASU 2016-02 — In February 2016, the FASB issued a new lease standard that supersedes existing lease guidance under GAAP. This standard requires lessees to record most leases on their balance sheets but recognize expenses on their income statements in a manner similar to existing lease guidance under GAAP. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, with the option to use certain relief. Full retrospective application is prohibited. This standard is effective for fiscal years, and interim reporting periods within those years, beginning after December 15, 2018, which for us is our fiscal 2020. We are currently evaluating the impact this standard will have on our financial position, results of operations and cash flows. ASU 2014-15 — Presentation of Financial Statements Going Concern (Subtopic 20540): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern to be effective for Annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016; which for us would be our fiscal 2017 and although early adoption is permitted for this standard, the Company has not adopted nor determined its applicability. ASU 2016-09 — In March 2016, the FASB issued an accounting standards update making final targeted amendments to the accounting for employee share-based payments. These amendments will require entities to recognize the income tax effects of awards when the awards vest or are settled, will change an employer’s accounting for an employee’s use of shares to satisfy the employer’s statutory income tax withholding obligation and will require entities to elect whether to account for forfeitures of share-based payments by either recognizing forfeitures of awards as they occur or estimating the number of awards expected to be forfeited as is currently required. The required method of adoption varies by amendment. This accounting standards update is effective for fiscal years, and interim reporting periods within those years, beginning after December 15, 2016, which for us is our first quarter of fiscal 2018. Early adoption is permitted in any annual or interim period, but all of the guidance is required to be adopted in the same period and any adjustments must be reflected as of the beginning of the fiscal year. We are currently evaluating the impact this accounting standards update will have on our financial position, results of operations and cash flows. ASU 2015-17 — Deferred Taxes (topic 740): For a particular tax-paying component of an entity and within a particular tax jurisdiction, all current deferred tax liabilities and assets shall be offset and presented as a single amount and all noncurrent deferred tax liabilities and assets, as well as any related valuation allowance, shall be offset and presented as a single noncurrent amount. However, an entity shall not offset deferred tax liabilities and assets attributable to different tax-paying components of the entity or to different tax jurisdictions. For public business entities, the amendments in this Update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods, which for us is our first quarter of fiscal 2018. Early adoption is permitted in any annual or interim period, but all of the guidance is required to be adopted in the same period and any adjustments must be reflected as of the beginning of the fiscal year. We are currently evaluating the impact this accounting standards update will have on our financial position, results of operations and cash flows. ASU 2016-15 The FASB recently issued ASU 2016-15 to clarify whether the certain items should be categorized as operating, investing or financing in the statement of cash flows.

SUPPLEMENTAL CASH FLOW INFORMAT

SUPPLEMENTAL CASH FLOW INFORMATION	3 Months Ended
	Sep. 30, 2016
Supplemental Cash Flow Elements [Abstract]
Cash Flow, Supplemental Disclosures [Text Block]	NOTE 2 — SUPPLEMENTAL CASH FLOW INFORMATION For the three months ended September 30, 2016 2015 (Unaudited) (Unaudited) Statement of Operation Information: Cash paid for income taxes $ 1,850 $ 1,850 Interest Paid $ 72,417 $ 51,233 Non Cash Investing and Financing Activities: Assets acquired with debt financing $ - $ 300,000 Accrued Deferred Offering Costs $ 140,000 $ -

INVENTORIES

INVENTORIES	3 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Inventory Disclosure [Text Block]	NOTE 3 — INVENTORIES September 30, June 30, 2016 2016 Amount Amount (unaudited) Raw materials $ 411,582 $ 423,670 Work-in-process 378,477 485,344 Reserve (37,000) (37,000) Total $ 753,059 $ 872,014 In August 2016, Microphase West operations were transferred to the Shelton Connecticut plant. As of September 30, 2016 Microphase West inventory was combined with the Shelton Connecticut inventory. The inventory reserves were similarly combined to equal 37,000

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	3 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment Disclosure [Text Block]	NOTE 4 — PROPERTY AND EQUIPMENT: September 30, June 30, 2016 2016 Amount Amount (unaudited) Leasehold Improvements $ 40,288 $ 40,288 Computers, machinery & equipment 3,210,147 3,210,147 Furniture and fixtures 122,350 122,350 Transportation equipment 40,438 40,438 Property held under capital leases 56,013 56,013 3,469,236 3,469,236 Less: accumulated depreciation and amortization (3,328,251) (3,310,257) Total $ 140,985 $ 158,979 Depreciation expense was $ 17,994 19,389 September

ACCRUED EXPENSES

ACCRUED EXPENSES	3 Months Ended
	Sep. 30, 2016
Payables and Accruals [Abstract]
Accounts Payable and Accrued Liabilities Disclosure [Text Block]	NOTE 5 — ACCRUED EXPENSES: Accrued expenses were comprised of the following: September 30, June 30, 2016 2016 (unaudited) Salaries, wages and other compensation, including $80,000 to related parties at September 30, 2016 and June 30, 2016 $ 354,497 $ 470,273 Royalties 150,386 146,449 Professional fees 529,162 372,500 Commissions 37,936 37,936 Interest 35,358 47,144 Other miscellaneous accruals 79,878 60,427 $ 1,187,217 $ 1,134,729 401 (K) Employee Benefit Plan: The Company sponsors a 401(K) plan for all eligible employees. Employee contributions are based on a percentage of compensation. Employer contributions for both matching and profit sharing are discretionary and determined annually by management. Deferred Lease Obligation At September 30, 2016 the Company has $ 95,441

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	3 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	NOTE 6 — FAIR VALUE OF FINANCIAL INSTRUMENTS: The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Quoted market prices are used to establish fair value when they are available and other valuation techniques are utilized to estimate the fair value of financial instruments that do not have quoted market prices. The Company has long term debt with fixed interest rates, the carrying amount of which may be different from fair value as of September 30, 2016 and June 30, 2016. The Company decided that it is not practical to estimate the fair value of these financial instruments on the basis that they are held-to-maturity debts which have no immediately available market information on the fair value and the cost of making assumptions and applying estimation methodologies to assess the fair value estimates exceeds the benefit. Information pertinent to estimating the fair value such as carrying amount, effective interest rate, maturity and repayment term are disclosed in Notes 7, 8, 9. The Company has applied the fair value concepts to its available-for-sale securities. As such, the valuation techniques used to measure fair value is based on the source of the data used to develop the prices. The priority of these sources is defined as follows: Level 1 — quoted prices in active markets. Level 2 — other than quoted prices that are directly or indirectly observable. Level 3 — unobservable inputs for the asset or liability. Marketable securities, classified as available-for-sale securities, are measured at fair market value (Level 1) on a recurring basis. As of September 30, 2016 these amounted to $ 385,667

REVOLVING CREDIT LINE

REVOLVING CREDIT LINE	3 Months Ended
	Sep. 30, 2016
Line of Credit Facility [Abstract]
Short-term Debt [Text Block]	NOTE 7 — REVOLVING CREDIT LINE September 30, June 30, 2016 2016 (unaudited) The Company entered into a revolving loan agreement with Gerber Finance, Inc. (Gerber) in February of 2012 for a maximum of $1,500,000, which was amended to $1,150,000 in November of 2013, and then to $1,400,000 in September 2015. Under this agreement, the Company can receive funds based on a borrowing base, which consists of various percentages of accounts receivable, inventories, a restricted cash account held by Gerber, and equipment. In connection with this agreement, the Company is subject to an annual facility fee (1.75%) on each anniversary, monthly collateral monitoring fees of $1,500 and other fees. As of September 30, 2016, this line has a limit of $1,400,000 and the interest is currently at the base rate of 7.25%. For the months of March through September 2016, we incurred an additional 2.5% interest charge on over-advance amounts that exceeded the collateral borrowing base and briefly (less than one week) a separate additional charge of 2.5% for exceeding the limit of $1,400,000 in June 2016. This excess utilization was eliminated in early July 2016. $ 844,926 $ 1,474,129 The interest expense for the three months ended September 30, 2016 and 2015, respectively, was $ 45,579 27,433 10,625 9,710 18.15 9.65 There are financial covenants set forth in the Gerber agreement of February 3, 2012 and as amended on February 24, 2012. As of September 30, 2016 the Company was not in compliance with three financial covenants regarding minimum levels of net worth, net income and subordinated debt. The Company has not received a notice of default from Gerber regarding these covenants and has been in discussions with Gerber regarding resolving the noncompliance. The Company expects to meet the minimum level of net worth covenant upon completion of the Offering. Approximate Value of collateral at balance sheet dates — September 30, June 30, 2016 2016 (unaudited) Inventories $ 753,059 $ 872,014 Accounts Receivable 367,019 1,092,482 Total $ 1,120,078 $ 1,964,496

EQUITY LINES OF CREDIT, OTHER T

EQUITY LINES OF CREDIT, OTHER TERMED DEBTS & ACQUISITION NOTES	3 Months Ended
	Sep. 30, 2016
Line of Credit Facility [Abstract]
Equity Line Of Credit [Text Block]	NOTE 8 — EQUITY LINES OF CREDIT, OTHER TERMED DEBTS & ACQUISITION NOTES: EQUITY LINES OF CREDIT: The Company had previously guaranteed the payment under the terms of an assumption agreement, as amended, of an Equity Line of Credit with Wells Fargo Bank totaling up to $ 250,000 250,000 218,290 3.35 250,000 217,259 3.35 1,839 1,940 Effective June 30, 2014, the Company also has guaranteed to the CEO, under the terms of an assumption agreement, as amended, the repayment of a second Equity Line of Credit with Wells Fargo Bank. The Company received working capital loans from the CEO which were from funds drawn against this Equity Line of Credit. As of June 30, 2016 the second line of credit had $ 150,000 101,003 3.0 150,000 98,873 3.0 757 910 Other termed debts consist of: (i) Long-term Debt, (ii) Capital Leases, & (iii) Extended Payment Arrangements. Long-term Debt: September 30, June 30, 2016 2016 (unaudited) Ford Credit Company: Payable in monthly payments of $499, including interest at 4.90% through April, 2019 secured by transportation equipment. $ 14,952 $ 15,823 Total $ 14,952 $ 15,823 Less: current portion (5,336) (5,336) Long-term portion $ 9,616 $ 10,487 The Company charged operations $ 127 533 Extended Payment arrangements: The Company is responsible for paying a former employee, disability benefits under a prior self-insured plan, through April, 2019. The plan requires monthly payments until the participant attains age 65. Interest has been imputed on this obligation at 5%. September 30, June 30, 2016 2016 (unaudited) Total of extended disability benefits $ 24,363 $ 26,721 Less: amount representing interest (1,592) (1,855) Present value of disability benefits 22,771 24,866 Less: current portion (8,378) (8,378) Long-term portion $ 14,393 $ 16,488 Interest expense charged to operations for the extended disability payments was $ 302 402 September 30, June 30, Small Business Express Job Creation Incentive loan: 2016 2016 (unaudited) State of Connecticut Small Business Express Program loan, funded August 2016, initial amount of $300,000 at an interest rate of 3.0% for a term of 10 years. Principal and interest payments are deferred for the first year of the loan. $ 300,000 $ - Total $ 300,000 $ - Less: current portion - - Long-term portion $ 300,000 $ - Summary totals for Other termed debts consist of: (i) Long-term Debt & (ii) Extended Payment Arrangements. September 30, June 30, 2016 2016 (unaudited) Total minimum long term debt, capital lease & extended disability payments $ 337,723 $ 40,689 Less: current portion (13,714) (13,714) Long-term portion $ 324,009 $ 26,975 ACQUIRED INTANGIBLE ASSETS & ACQUISITION NOTES PAYABLE: The Company acquired certain assets including specific inventory and fixed assets from a RF services provider, Microsemi Corp-RF Integrated Solutions (“Microsemi”); which had eliminated providing certain RF services similar to that of the Company for approximately 10 customers. The acquisition was pursuant to a contract, originally dated March 27, 2013, which provided for a $ 100,000 650,000 750,000 155,277 5 On August 8, 2014 the Company initially signed a strategic partnership agreement with Dynamac, Inc. to develop, manufacture and market a portfolio of low cost RF/Microwave and Millimeter-wave calibrated test probes and related universal test platforms. On January 21, 2016, Microphase Instruments LLC, a subsidiary of Microphase Corporation (the “Company”) entered into a Purchase Agreement (the “Agreement”) with Dynamac, Inc. (the “Seller”), pursuant to which the Company agreed to acquire certain assets in a line of proprietary RF and microwave test and measurement products, as well as related intellectual property (the “Dynamac Assets”). On November 2, 2016, the Company entered into that certain First Amendment to Purchase Agreement with Dynamac (the “Dynamac Amendment”), pursuant to which, among other things, the Company agreed that Dynamac would retain ownership of the Dynamac assets until the Company has paid all amounts owed pursuant to the Dynamac agreement, with such amounts due within 10 days of the closing of the offering of the Company’s common stock as contemplated in the Registration Statement on Form S-1 filed with the SEC on July 28, 2016 (the “Offering”). Asset allocation on Acquisition date Microsemi The Exclusive License associated with the Microsemi Inc. (“Microsemi”) asset acquisition was valued at $56,861, was ascribed a perpetual life and is subject to evaluation annually for impairment. Management has determined that there was no impairment charge to be recorded for the three months ended September 30, 2016 and 2015. Customer Lists and Non-Compete agreements associated with the Microsemi asset acquisition were ascribed useful lives of 7 5 155,277 5 10 3,878 3,878 Dynamac The Dynamac License was recorded at cost. The Company deposited $ 50,000 300,000 The assets acquired in the Dynamac agreement of January 21, 2016 have been valued at the contract price in our initial measurement, resulting in intangible assets other than goodwill, primarily Intellectual Property consisting of two (2) patents with remaining lives of over 12 Our accounting for the allocation of the relative fair value of the intangible assets, other than goodwill, acquired in the Dynamac acquisition is still preliminary. The fair value estimates for the assets acquired were based on preliminary calculations, and our estimates and assumptions of the allocation of the relative fair value of these assets to possibly amortizable components, and if any, what period of amortization would be appropriate, are subject to change as we obtain additional information for our estimates during the measurement period (up to one year from the acquisition date). These assets will be subject to periodic evaluation and at a minimum will be reviewed annually for impairment. The Company assesses these assets for impairment based on their future cash flows. September 30, June 30, 2016 2016 (unaudited) Intellectual Property $ 2,520,425 $ 2,520,425 Customer List 73,017 73,017 Non-Compete Clause 25,399 25,399 Exclusive License 56,861 56,861 Total 2,675,702 2,675,702 Accumulated Amortization (50,410) (46,532) Net Total $ 2,625,292 $ 2,629,170 September 30, June 30, 2016 2016 (unaudited) Asset Acquisition Note Payable-current portion - Dynamac agreement $ 975,345 $ 975,345 Asset Acquisition Note Payable, net of current portion - Dynamac agreement 1,045,080 1,045,080 Total Asset acquisition note payable $ 2,020,425 $ 2,020,425 The acquisition of Microsemi on March 27, 2013, provided for a $ 100,000 650,000 The Dynamac agreement, as revised, of January 21, 2016 was funded by the $ 50,000 350,000 100,000 7 2,020,425 On November 2, 2016 the Agreement was extended whereby the initial payment is due November 22, 2016. See Note 13 – Subsequent Events.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	NOTE 9 — RELATED PARTY TRANSACTIONS: The Company had activities with related parties during the fiscal years 2016 and 2015. The Company sublet office space until March 31, 2015 and a vehicle in fiscal 2015 to mPhase. In fiscal 2016, the rent recorded was $ 0 9,000 33,295 Notes Payable — Related Parties: September 30, June 30, 2016 2016 (unaudited) Former Employee: Note payable to a Note Holder formerly employed by the Company, payable in monthly payments of $7,600 as revised in November 2015, with interest at 6% until paid in full. This Note Holder subordinated his debt to the revolving line discussed in Note 7, in February 2012, and converted $170,000 of his debt into 113,333 shares of common stock during the Fiscal year ended June 30, 2015. During FY 2016, the Company has sought to revise the payment schedule with the Note Holder, and to date the parties have not agreed to a revised repayment schedule and the note is in arrears. In May 2016, this lender initiated a Notice of Default and Demand for Payment, and in July 2016 the Note Holder initiated litigation to collect this debt in full. While the Company still seeks a mutually agreeable settlement, the Company believes this debt will be settled for an amount substantially the same as recorded in the financial statement. $ 154,732 152,434 Stockholders: Two notes previously payable to individuals with monthly payments of $2,715 and $2,750 as revised, including interest at 6% through September 2017. In January 2016, these two notes and loan amortization schedules were revised with monthly payments of $910 and $980 respectively, including interest at 3% through August 2019. The monthly payment amounts increase by $130 and $140 every 4 months, per the revised schedule. $ 119,656 118,762 Other Related Parties: Previously payable to this individual in monthly payments of $875 as revised, including interest at 6% through September 2017. In January 2016, this note and loan amortization schedule was revised with a monthly payment of $280, including interest at 3% through August 2019. The monthly payment amount increases by $40 every 4 months, per the revised schedule. $ 18,894 18,754 Two notes previously payable to two individuals with identical monthly payments of $2,425 each as revised, including interest at 6% through April 2017. In January 2016, these two notes and loan amortization schedules were revised with monthly payments of $840 each, including interest at 3% through August 2019. The monthly payment amount increases by $120 every 4 months, per the revised schedule. $ 105,847 105,057 Total $ 399,129 $ 395,007 Less: current portion (212,490) (137,150) Long-term portion $ 186,639 $ 257,857 The Company and the note holders (except for the former employee as discussed above) have agreed to revised repayment schedules for 42 months commencing December 2015. As of September 30, 2016, the Company was in arrears on four payments of the revised repayment schedules for each of the note holders. The Company charged operations $ 4,122 6,938 THE COMPANY HAS MATERIAL DEBT SERVICE COMMITMENTS AT SEPTEMBER 30, 2016 AS DISCUSSED IN NOTES 8 & 9 SUMMARIZED AS FOLLOWS: SMALL BUSINESS EXPRESS RELATED OTHER EQUITY CREATION PARTY TERMED LINES OF ACQUISITION INCENTIVE LOANS DEBT CREDIT NOTES LOAN TOTAL EFFECTIVE INTEREST RATE 4.1 % 5.5 % 3.3 % 7 % 3 % Fiscal Years: 2017 $ 141,272 $ 13,714 $ 38,236 $ 975,345 $ — $ 1,168,567 2018 118,645 14,410 39,363 1,045,080 26,996 1,244,494 2019 104,112 9,599 238,533 — 30,308 382,552 2020 35,100 — — — 31,229 66,329 2021 — — — — 32,179 32,179 thereafter — — — — 179,288 179,288 Total $ 399,129 $ 37,723 $ 316,132 $ 2,020,425 $ 300,000 $ 3,073,409

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	NOTE 10 — STOCKHOLDERS’ EQUITY: Microphase Corporation has authorized capital of 7,800,000 200,000 100 6 On October 4, 2014, at a special meeting of the shareholders of the Company, the shareholders approved amendments to the Certificate of Incorporation of the Company to: (1) Increase its authorized common stock from 4,800,000 50,000,000 7,800,000 200,000 100 2,000,000 6 100 Common Stock During the three months ended September 30, 2016 the Company issued 10,000 55,000 97,500 During the three months ended September 30, 2015, the Company issued no shares of its common stock. During the three months ended September 30, 2016 the Company received net $ 45,000 33,334 33,334 2.50 1.50 Preferred Stock The Preferred Stock, with respect to dividends, liquidation payments, and liquidation rights, ranks senior to the common stock and of the Company. Holders of Preferred Stock are entitled to receive, when and as declared by the Board of Directors, dividends, at the annual rate of 6 100 As of September 30, 2016, 15,382 267,051 Reserved Shares Stock Options The Board approved the implementation of a stock option plan in January 2015, for which the Company will not seek ratification by the shareholders, reserving 250,000 75,000 2.00 7 25,000 25,000 106,200 112.5 35,400 35,400 Series A Preferred Shares currently convertible As of September 30, 2016, 15,382 267,051 1,025,467 1.50 178,034 1.50 Certain Debts currently convertible As of September 30, 2016, 399,129 80,000 266,086 53,334 1.50

MAJOR CUSTOMERS AND SEGMENTS

MAJOR CUSTOMERS AND SEGMENTS	3 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Segment Reporting Disclosure [Text Block]	NOTE 11 — MAJOR CUSTOMERS AND SEGMENTS: The Company recorded sales of $ 796,996 1,428,581 58 58 122,598 Sales to U.S. customers represented 87 86

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	NOTE 12 — COMMITMENTS AND CONTINGENCIES: The Company moved to Shelton, Connecticut on April 21, 2015, to a facility with 15,000 15,000 7 3 18,400 24,740 297,000 Employment and Consultant Contracts: The Company had previously entered into employment contracts with two long term officers through 2015 that provided for a stated salary of $ 250,000 225,000 80,000 80,000 In Fiscal 2015 the Company also entered into three year employment contracts with two new officers for at will employment with base compensation of $ 160,000 150,000 175,000 165,000 Effective July 1, 2016 the Company executed a modification to the consulting contract with the general manager through February 1, 2019. The updated contract includes base compensation of $ 192,000 The Company leases 5 vehicles under operating leases expiring in 2016 through 2018. As of September 30, 2016 the future minimum rental payments for fiscal 2017 are $ 27,221 Fiscal year Shelton Facility Lease Car leases Total 2017 $ 298,358 $ 27,221 $ 325,579 2018 307,240 16,567 323,807 2019 316,361 4,491 320,852 2020 325,721 0 325,721 2021 335,348 0 335,348 Thereafter 691,126 0 691,126 Total $ 2,274,154 $ 48,279 $ 2,322,433 We are subject to legal proceedings and other claims arising out of the conduct of our business, including proceedings and claims relating to commercial and financial transactions; government contracts and sub-contracts; alleged lack of compliance with applicable laws and regulations; production partners; product liability; patent and trademark infringement; employment disputes; and environmental, safety and health matters. Some potential legal proceedings and claims could seek damages, fines or penalties in substantial amounts or remediation of environmental contamination. As a government sub-contractor, we are subject to audits, reviews and investigations to determine whether our operations are being conducted in accordance with applicable regulatory requirements. Under federal government procurement regulations, certain claims brought by the U.S. Government could result in our suspension or debarment from U.S. Government contracting for a period of time. On the basis of information presently available, we do not believe that there are any existing proceedings or potential claims that would have a material effect on our financial position or results of operations.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
Subsequent Events [Text Block]	NOTE 13 — SUBSEQUENT EVENTS: During September and October 2016, the Company commenced a private placement for 333,334 450,000 50,000 333,334 2.50 60,000 50,000 Through November 9, 2016 the Company has received $ 400,000 50,000 Also in October 2016, the Company has offered to issue notes for bridge loans for a total of $ 700,000 630,000 70,000 120,000 90,000 The terms of this bridge debt will be pursuant to note purchase agreements with purchasers that are accredited investors, for notes up to in the aggregate amount of $700,000, at an interest rate of 10 On November 2, 2016, we entered into that certain First Amendment to Purchase Agreement with Dynamac (the “Dynamac Amendment” and, the January Dynamac Agreement, as amended by the Dynamac Amendment, the “Dynamac Transaction”), pursuant to which, among other things, the Company agreed that Dynamac would retain ownership in the Dynamac Assets until the Company has delivered all amounts owed pursuant to the Dynamac Transaction, with such amounts due within 10 days of the closing of the Offering and the Company to pay such amounts from the proceeds thereof. In connection with this amendment the Company has agreed to issue 300,000

BASIS OF PRESENTATION AND SUM23

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and pursuant to the regulations of the Securities Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the three months ending September 30, 2016 are not necessarily indicative of the results that may be expected for a full fiscal year. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries which include Microphase West LLC and Microphase Instruments, LLC, as of October 23, 2015. All intercompany accounts and transactions have been eliminated. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2016. As of June 30, 2016, we had an accumulated deficit of $ 13,939,651 602,207 14,605,924 940,313 The Company’s ability to continue as a going concern and its future success is dependent upon its ability to raise capital in the near term to: (1) satisfy its current obligations, (2) continue its research and development efforts, and (3) allow the successful wide scale development, deployment and marketing of its products.
Property, Plant and Equipment, Policy [Policy Text Block]	Method Years Leasehold Improvements Straight Line 7 Property held under capital leases Straight Line 5 Furniture and fixtures Straight Line 7 Machinery and equipment Straight Line 5 Computer equipment Straight Line 3 Transportation equipment Straight Line 5
Maintenance Cost, Policy [Policy Text Block]	MAINTENANCE AND REPAIRS — Charged to expenses as incurred. Cost of major replacements and renewals are capitalized. Upon retirement or other disposition of equipment and improvements, the cost and related depreciation is removed from the accounts, and any gain or loss is recognized in income.
Inventory, Policy [Policy Text Block]	INVENTORIES — are stated at the lower of average cost or market under the first-in, first-out method. The Company regularly reviews inventory quantities on hand and records a provision for excess and obsolete inventory primarily based on our estimated forecast of product demand, anticipated end of product life and production requirements.
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]	OTHER LONG LIVED ASSETS — The Company reviews long-term assets for impairment whenever events or circumstances indicate that the carrying amount of those assets may not be recoverable. The Company assesses these assets for impairment based on their future cash flows. Management has determined that there was no impairment charge to be recorded for the three months ended September 30, 2016.
Trade and Other Accounts Receivable, Policy [Policy Text Block]
Use of Estimates, Policy [Policy Text Block]	ACCOUNTING ESTIMATES — Management uses estimates and assumptions in preparing financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could vary from the estimates that were assumed in preparing the financial statements.
Compensated Absences Policy [Policy Text Block]	COMPENSATED ABSENCES — Employees of the Company are entitled to vacation pay depending on length of service and current salary. Vacation days accrued in a given year are available in the following year. A limit of 5 days of unused vacation may be carried over to a subsequent year. The Company has provided for vacation liabilities in the accompanying financial statements.
Research and Development Expense, Policy [Policy Text Block]	RESEARCH AND DEVELOPMENT EXPENSES — The Company charges the cost of research and development to operations when incurred.
Revenue Recognition, Policy [Policy Text Block]	REVENUE RECOGNITION — The Company recognizes revenues when persuasive evidence of an arrangement exists, the product has been shipped, the price is fixed and collectability is reasonably assured. Revenue is recognized net of estimated sales returns and allowances.
Grant Income [Policy Text Block]	GRANT INCOME — During the three months ended September 30, 2016 the Company was awarded and received the proceeds of a Small Business Express Matching Grant in an amount 100,000 the move of our California operation to Connecticut and with the development of the T & M products to be acquired in the Company’s Microphase Instruments, LLC, subsidiary. State grant funding requires a dollar for dollar match on behalf of the Company, which the Company’s obligation was considered funded in full prior to the Grant award. During the three months ended September 30, 2016 the Company recorded $ 26,800 as a reduction in Selling, General & Administrative expenses 73,200
Reclassification, Policy [Policy Text Block]	RECLASSIFICATIONS- Certain prior year amounts have been reclassified in our Condensed Consolidated Financial Statements to conform to current year classifications
Earnings Per Share, Policy [Policy Text Block]	EARNINGS (LOSS) PER SHARE — Basic earnings (loss) per share (“EPS”) is determined by dividing the net earnings (loss) by the weighted-average number of shares of common shares outstanding during the period. Diluted EPS is determined by dividing net earnings (loss) by the weighted average number of common shares used in the basic EPS calculation plus the number of common shares that would be issued assuming conversion of all potentially dilutive securities (such as stock options, preferred stock and convertible securities) outstanding under the treasury stock method. As of September 30, 2016 we have outstanding (i) options to purchase 75,000 15,382 1,025,467 479,129 312,420
New Accounting Pronouncements, Policy [Policy Text Block]	RECENT ACCOUNTING PRONOUNCEMENTS— The Company is evaluating several pronouncements issued by the FASB which may result in the adoption by the Company of these standards in upcoming accounting periods as follows: ADOPTION OF NEW ACCOUNTING STANDARDS — On April 7, 2015, the FASB issued Accounting Standards Update 2015-03, Interest — Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires entities to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability. The guidance in Update 2015-03 (see below) does not address presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements. Given the absence of authoritative guidance within Update 2015-03 for debt issuance costs related to line-of-credit arrangements, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement to be effective for Fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015; which for us is 1 st ASU 2014-12 — Compensation Stock-Compensation (Topic 718): Accounting for Share Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force) to be effective for Annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2015; which for us would be our 1 st ACCOUNTING STANDARDS ISSUED BUT NOT YET EFFECTIVE — The Company is evaluating several pronouncements issued by the FASB which may result in the adoption by the Company of these standards in upcoming accounting periods as follows: ASU 2014-09 — Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date-In May 2014, the FASB issued a comprehensive new revenue recognition standard that supersedes nearly all revenue recognition guidance under U.S. GAAP and supersedes some cost guidance for construction-type and production-type contracts. The guidance in this standard is principles-based, and accordingly, entities will be required to use more judgment and make more estimates than under prior guidance, including identifying contract performance obligations, estimating variable consideration to include in the contract price and allocating the transaction price to separate performance obligations. The guidance in this standard is applicable to all contracts with customers, regardless of industry-specific or transaction-specific fact patterns. Additionally, this standard provides guidance for transactions that were not previously addressed comprehensively (e.g., service revenue, contract modifications and licenses of intellectual property) and modifies guidance for multiple-element arrangements. The core principle of this standard is that entities should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. To help financial statement users better understand the nature, amount, timing and potential uncertainty of the revenue that is recognized, this standard requires significantly more interim and annual disclosures. This standard allows for either “full retrospective” adoption (application to all periods presented) or “modified retrospective” adoption (application to only the most current period presented in the financial statements, as well as certain additional required footnote disclosures). On July 9, 2015, the FASB approved a one-year deferral of the effective date, while permitting entities to elect to adopt one year earlier on the original effective date. As a result, this standard is now effective for fiscal years, and interim reporting periods within those years, beginning after December 15, 2017, which for us is our fiscal 2019. We are currently evaluating the impact this standard, if any, will have on our financial position, results of operations and cash flows. ASU 2015-11 — Inventory (Topic 330): Simplifying the Measurement of Inventory. For public business entities, the content that links to this paragraph shall be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, which for us is our first quarter of fiscal 2018. We are currently evaluating the impact this standard will have on our financial position, results of operations and cash flows. ASU 2016-02 — In February 2016, the FASB issued a new lease standard that supersedes existing lease guidance under GAAP. This standard requires lessees to record most leases on their balance sheets but recognize expenses on their income statements in a manner similar to existing lease guidance under GAAP. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, with the option to use certain relief. Full retrospective application is prohibited. This standard is effective for fiscal years, and interim reporting periods within those years, beginning after December 15, 2018, which for us is our fiscal 2020. We are currently evaluating the impact this standard will have on our financial position, results of operations and cash flows. ASU 2014-15 — Presentation of Financial Statements Going Concern (Subtopic 20540): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern to be effective for Annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016; which for us would be our fiscal 2017 and although early adoption is permitted for this standard, the Company has not adopted nor determined its applicability. ASU 2016-09 — In March 2016, the FASB issued an accounting standards update making final targeted amendments to the accounting for employee share-based payments. These amendments will require entities to recognize the income tax effects of awards when the awards vest or are settled, will change an employer’s accounting for an employee’s use of shares to satisfy the employer’s statutory income tax withholding obligation and will require entities to elect whether to account for forfeitures of share-based payments by either recognizing forfeitures of awards as they occur or estimating the number of awards expected to be forfeited as is currently required. The required method of adoption varies by amendment. This accounting standards update is effective for fiscal years, and interim reporting periods within those years, beginning after December 15, 2016, which for us is our first quarter of fiscal 2018. Early adoption is permitted in any annual or interim period, but all of the guidance is required to be adopted in the same period and any adjustments must be reflected as of the beginning of the fiscal year. We are currently evaluating the impact this accounting standards update will have on our financial position, results of operations and cash flows. ASU 2015-17 — Deferred Taxes (topic 740): For a particular tax-paying component of an entity and within a particular tax jurisdiction, all current deferred tax liabilities and assets shall be offset and presented as a single amount and all noncurrent deferred tax liabilities and assets, as well as any related valuation allowance, shall be offset and presented as a single noncurrent amount. However, an entity shall not offset deferred tax liabilities and assets attributable to different tax-paying components of the entity or to different tax jurisdictions. For public business entities, the amendments in this Update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods, which for us is our first quarter of fiscal 2018. Early adoption is permitted in any annual or interim period, but all of the guidance is required to be adopted in the same period and any adjustments must be reflected as of the beginning of the fiscal year. We are currently evaluating the impact this accounting standards update will have on our financial position, results of operations and cash flows. ASU 2016-15 The FASB recently issued ASU 2016-15 to clarify whether the certain items should be categorized as operating, investing or financing in the statement of cash flows.

BASIS OF PRESENTATION AND SUM24

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Schedule of Business Acquisitions, by Acquisition [Table Text Block]	Are stated at cost. Provision for depreciation and amortization for financial reporting and income tax purposes is made by annual charges to operations principally under the following methods and estimated useful lives: Method Years Leasehold Improvements Straight Line 7 Property held under capital leases Straight Line 5 Furniture and fixtures Straight Line 7 Machinery and equipment Straight Line 5 Computer equipment Straight Line 3 Transportation equipment Straight Line 5

SUPPLEMENTAL CASH FLOW INFORM25

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)	3 Months Ended
	Sep. 30, 2016
Supplemental Cash Flow Elements [Abstract]
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]	For the three months ended September 30, 2016 2015 (Unaudited) (Unaudited) Statement of Operation Information: Cash paid for income taxes $ 1,850 $ 1,850 Interest Paid $ 72,417 $ 51,233 Non Cash Investing and Financing Activities: Assets acquired with debt financing $ - $ 300,000 Accrued Deferred Offering Costs $ 140,000 $ -

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Schedule of Inventory, Current [Table Text Block]	Inventories consist of the following: September 30, June 30, 2016 2016 Amount Amount (unaudited) Raw materials $ 411,582 $ 423,670 Work-in-process 378,477 485,344 Reserve (37,000) (37,000) Total $ 753,059 $ 872,014

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	3 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment [Table Text Block]	Property and equipment was comprised of the following: September 30, June 30, 2016 2016 Amount Amount (unaudited) Leasehold Improvements $ 40,288 $ 40,288 Computers, machinery & equipment 3,210,147 3,210,147 Furniture and fixtures 122,350 122,350 Transportation equipment 40,438 40,438 Property held under capital leases 56,013 56,013 3,469,236 3,469,236 Less: accumulated depreciation and amortization (3,328,251) (3,310,257) Total $ 140,985 $ 158,979

ACCRUED EXPENSES (Tables)

ACCRUED EXPENSES (Tables)	3 Months Ended
	Sep. 30, 2016
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities [Table Text Block]	Accrued expenses were comprised of the following: September 30, June 30, 2016 2016 (unaudited) Salaries, wages and other compensation, including $80,000 to related parties at September 30, 2016 and June 30, 2016 $ 354,497 $ 470,273 Royalties 150,386 146,449 Professional fees 529,162 372,500 Commissions 37,936 37,936 Interest 35,358 47,144 Other miscellaneous accruals 79,878 60,427 $ 1,187,217 $ 1,134,729

REVOLVING CREDIT LINE (Tables)

REVOLVING CREDIT LINE (Tables)	3 Months Ended
	Sep. 30, 2016
Line of Credit Facility [Abstract]
Schedule of Line of Credit Facilities [Table Text Block]	September 30, June 30, 2016 2016 (unaudited) The Company entered into a revolving loan agreement with Gerber Finance, Inc. (Gerber) in February of 2012 for a maximum of $1,500,000, which was amended to $1,150,000 in November of 2013, and then to $1,400,000 in September 2015. Under this agreement, the Company can receive funds based on a borrowing base, which consists of various percentages of accounts receivable, inventories, a restricted cash account held by Gerber, and equipment. In connection with this agreement, the Company is subject to an annual facility fee (1.75%) on each anniversary, monthly collateral monitoring fees of $1,500 and other fees. As of September 30, 2016, this line has a limit of $1,400,000 and the interest is currently at the base rate of 7.25%. For the months of March through September 2016, we incurred an additional 2.5% interest charge on over-advance amounts that exceeded the collateral borrowing base and briefly (less than one week) a separate additional charge of 2.5% for exceeding the limit of $1,400,000 in June 2016. This excess utilization was eliminated in early July 2016. $ 844,926 $ 1,474,129
Schedule Of Line Of Credit Facility Financial Covenants [Table Text Block]	There are financial covenants set forth in the Gerber agreement of February 3, 2012 and as amended on February 24, 2012. As of September 30, 2016 the Company was not in compliance with three financial covenants regarding minimum levels of net worth, net income and subordinated debt. The Company has not received a notice of default from Gerber regarding these covenants and has been in discussions with Gerber regarding resolving the noncompliance. The Company expects to meet the minimum level of net worth covenant upon completion of the Offering. Approximate Value of collateral at balance sheet dates — September 30, June 30, 2016 2016 (unaudited) Inventories $ 753,059 $ 872,014 Accounts Receivable 367,019 1,092,482 Total $ 1,120,078 $ 1,964,496

EQUITY LINES OF CREDIT, OTHER30

EQUITY LINES OF CREDIT, OTHER TERMED DEBTS & ACQUISITION NOTES (Tables)	3 Months Ended
	Sep. 30, 2016
Schedule of Long-term Debt Instruments [Table Text Block]	Long-term Debt: September 30, June 30, 2016 2016 (unaudited) Ford Credit Company: Payable in monthly payments of $499, including interest at 4.90% through April, 2019 secured by transportation equipment. $ 14,952 $ 15,823 Total $ 14,952 $ 15,823 Less: current portion (5,336) (5,336) Long-term portion $ 9,616 $ 10,487
Schedule of Defined Benefit Plans Disclosures [Table Text Block]	The Company is responsible for paying a former employee, disability benefits under a prior self-insured plan, through April, 2019. The plan requires monthly payments until the participant attains age 65. Interest has been imputed on this obligation at 5%. September 30, June 30, 2016 2016 (unaudited) Total of extended disability benefits $ 24,363 $ 26,721 Less: amount representing interest (1,592) (1,855) Present value of disability benefits 22,771 24,866 Less: current portion (8,378) (8,378) Long-term portion $ 14,393 $ 16,488
Schedule of Debt [Table Text Block]	September 30, June 30, 2016 2016 (unaudited) Total minimum long term debt, capital lease & extended disability payments $ 337,723 $ 40,689 Less: current portion (13,714) (13,714) Long-term portion $ 324,009 $ 26,975
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]	Our Acquisitions have resulted in the following Asset allocation: September 30, June 30, 2016 2016 (unaudited) Intellectual Property $ 2,520,425 $ 2,520,425 Customer List 73,017 73,017 Non-Compete Clause 25,399 25,399 Exclusive License 56,861 56,861 Total 2,675,702 2,675,702 Accumulated Amortization (50,410) (46,532) Net Total $ 2,625,292 $ 2,629,170
Small Business Express Program loan [Member]
Schedule of Debt [Table Text Block]	September 30, June 30, Small Business Express Job Creation Incentive loan: 2016 2016 (unaudited) State of Connecticut Small Business Express Program loan, funded August 2016, initial amount of $300,000 at an interest rate of 3.0% for a term of 10 years. Principal and interest payments are deferred for the first year of the loan. $ 300,000 $ - Total $ 300,000 $ - Less: current portion - - Long-term portion $ 300,000 $ -
Acquisition Note Payable [Member]
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]	Asset Acquisition Note Payable is comprised of the following: September 30, June 30, 2016 2016 (unaudited) Asset Acquisition Note Payable-current portion - Dynamac agreement $ 975,345 $ 975,345 Asset Acquisition Note Payable, net of current portion - Dynamac agreement 1,045,080 1,045,080 Total Asset acquisition note payable $ 2,020,425 $ 2,020,425

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	3 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
Schedule of Related Party Transactions [Table Text Block]	Notes Payable — Related Parties: September 30, June 30, 2016 2016 (unaudited) Former Employee: Note payable to a Note Holder formerly employed by the Company, payable in monthly payments of $7,600 as revised in November 2015, with interest at 6% until paid in full. This Note Holder subordinated his debt to the revolving line discussed in Note 7, in February 2012, and converted $170,000 of his debt into 113,333 shares of common stock during the Fiscal year ended June 30, 2015. During FY 2016, the Company has sought to revise the payment schedule with the Note Holder, and to date the parties have not agreed to a revised repayment schedule and the note is in arrears. In May 2016, this lender initiated a Notice of Default and Demand for Payment, and in July 2016 the Note Holder initiated litigation to collect this debt in full. While the Company still seeks a mutually agreeable settlement, the Company believes this debt will be settled for an amount substantially the same as recorded in the financial statement. $ 154,732 152,434 Stockholders: Two notes previously payable to individuals with monthly payments of $2,715 and $2,750 as revised, including interest at 6% through September 2017. In January 2016, these two notes and loan amortization schedules were revised with monthly payments of $910 and $980 respectively, including interest at 3% through August 2019. The monthly payment amounts increase by $130 and $140 every 4 months, per the revised schedule. $ 119,656 118,762 Other Related Parties: Previously payable to this individual in monthly payments of $875 as revised, including interest at 6% through September 2017. In January 2016, this note and loan amortization schedule was revised with a monthly payment of $280, including interest at 3% through August 2019. The monthly payment amount increases by $40 every 4 months, per the revised schedule. $ 18,894 18,754 Two notes previously payable to two individuals with identical monthly payments of $2,425 each as revised, including interest at 6% through April 2017. In January 2016, these two notes and loan amortization schedules were revised with monthly payments of $840 each, including interest at 3% through August 2019. The monthly payment amount increases by $120 every 4 months, per the revised schedule. $ 105,847 105,057 Total $ 399,129 $ 395,007 Less: current portion (212,490) (137,150) Long-term portion $ 186,639 $ 257,857
Schedule of Maturities of Long-term Debt [Table Text Block]	RELATED OTHER EQUITY ACQUISITION SMALL EXPRESS JOB TOTAL EFFECTIVE INTEREST RATE 4.1 % 5.5 % 3.3 % 7 % 3 % Fiscal Years: 2017 $ 141,272 $ 13,714 $ 38,236 $ 975,345 $ — $ 1,168,567 2018 118,645 14,410 39,363 1,045,080 26,996 1,244,494 2019 104,112 9,599 238,533 — 30,308 382,552 2020 35,100 — — — 31,229 66,329 2021 — — — — 32,179 32,179 thereafter — — — — 179,288 179,288 Total $ 399,129 $ 37,723 $ 316,132 $ 2,020,425 $ 300,000 $ 3,073,409

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Operating Leases of Lessee Disclosure [Table Text Block]	5 year Shelton Facility lease and Car lease schedules as of September 30, 2016: Fiscal year Shelton Facility Lease Car leases Total 2017 $ 298,358 $ 27,221 $ 325,579 2018 307,240 16,567 323,807 2019 316,361 4,491 320,852 2020 325,721 0 325,721 2021 335,348 0 335,348 Thereafter 691,126 0 691,126 Total $ 2,274,154 $ 48,279 $ 2,322,433

BASIS OF PRESENTATION AND SUM33

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	3 Months Ended
	Sep. 30, 2016
Assets Held under Capital Leases [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Property, Plant and Equipment, Depreciation Methods	Straight Line
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	7 years
Property, Plant and Equipment, Depreciation Methods	Straight Line
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Property, Plant and Equipment, Depreciation Methods	Straight Line
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Property, Plant and Equipment, Depreciation Methods	Straight Line
Transportation Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Property, Plant and Equipment, Depreciation Methods	Straight Line
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	7 years
Property, Plant and Equipment, Depreciation Methods	Straight Line

BASIS OF PRESENTATION AND SUM34

BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($)	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Jun. 30, 2016
Significant Accounting Policies Disclosure [Line Items]
Stockholders' Equity Attributable to Parent	$ (940,313)		$ (602,207)
Retained Earnings (Accumulated Deficit)	$ (14,605,924)		$ (13,939,651)
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	75,000
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Preferred Stock	15,382
Conversion of Stock, Shares Issued	1,025,467
Debt Conversion, Converted Instrument, Amount	$ 479,129
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities	312,420
Revenue from Grants	$ 100,000
Nonoperating Income (Expense)	0	$ 2,250
Deferred Revenue	$ 73,200
Sales [Member] | Sales Revenue, Net [Member]
Significant Accounting Policies Disclosure [Line Items]
Concentration Risk, Percentage	100.00%
Selling, General and Administrative Expenses [Member]
Significant Accounting Policies Disclosure [Line Items]
Nonoperating Income (Expense)	$ 26,800

SUPPLEMENTAL CASH FLOW INFORM35

SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($)	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Statement of Operation Information:
Cash paid for income taxes	$ 1,850	$ 1,850
Interest Paid	72,417	51,233
Non Cash Investing and Financing Activities:
Assets acquired with debt financing	0	300,000
Accrued Deferred Offering Costs	$ 140,000	$ 0

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	Sep. 30, 2016	Jun. 30, 2016
Inventory [Line Items]
Raw materials	$ 411,582	$ 423,670
Work-in-process	378,477	485,344
Reserve	(37,000)	(37,000)
Total	$ 753,059	$ 872,014

INVENTORIES (Details Textual)

INVENTORIES (Details Textual) - USD ($)	Sep. 30, 2016	Jun. 30, 2016
Inventory [Line Items]
Inventory Valuation Reserves	$ 37,000	$ 37,000

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($)	Sep. 30, 2016	Jun. 30, 2016
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 3,469,236	$ 3,469,236
Less: accumulated depreciation and amortization	(3,328,251)	(3,310,257)
Total	140,985	158,979
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	40,288	40,288
Computers, Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	3,210,147	3,210,147
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	122,350	122,350
Transportation Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	40,438	40,438
Property held under capital leases [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 56,013	$ 56,013

PROPERTY AND EQUIPMENT (Detai39

PROPERTY AND EQUIPMENT (Details Textual) - USD ($)	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Property, Plant and Equipment [Line Items]
Depreciation	$ 17,994	$ 19,389

ACCRUED EXPENSES (Details)

ACCRUED EXPENSES (Details) - USD ($)	Sep. 30, 2016	Jun. 30, 2016
Accrued And Other Expenses [Line Items]
Salaries, wages and other compensation, including $80,000 to related parties at September 30, 2016 and June 30, 2016	$ 354,497	$ 470,273
Royalties	150,386	146,449
Professional fees	529,162	372,500
Commissions	37,936	37,936
Interest	35,358	47,144
Other miscellaneous accruals	79,878	60,427
Accrued Liabilities, Current	$ 1,187,217	$ 1,134,729

ACCRUED EXPENSES (Details Textu

ACCRUED EXPENSES (Details Textual) - USD ($)	Sep. 30, 2016	Jun. 30, 2016
Accrued And Other Expenses [Line Items]
Capital Lease Obligations, Noncurrent	$ 95,441	$ 81,189
Shelton Connecticut facility [Member]
Accrued And Other Expenses [Line Items]
Capital Lease Obligations, Noncurrent	$ 95,441

FAIR VALUE OF FINANCIAL INSTR42

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details Textual)	Sep. 30, 2016USD ($)
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities	$ 385,667

REVOLVING CREDIT LINE (Details)

REVOLVING CREDIT LINE (Details) - USD ($)	Sep. 30, 2016	Jun. 30, 2016
Line of Credit Facility [Line Items]
Credit Facility - Revolving Loan	$ 844,926	$ 1,474,129
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Credit Facility - Revolving Loan	$ 844,926	$ 1,474,129

REVOLVING CREDIT LINE (Details

REVOLVING CREDIT LINE (Details 1) - USD ($)	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Line of Credit Facility [Line Items]
Line Of Credit Facility, Collateral Fees, Amount	$ 1,120,078	$ 1,964,496
Inventories [Member]
Line of Credit Facility [Line Items]
Line Of Credit Facility, Collateral Fees, Amount	753,059	872,014
Accounts Receivable [Member]
Line of Credit Facility [Line Items]
Line Of Credit Facility, Collateral Fees, Amount	$ 367,019	$ 1,092,482

REVOLVING CREDIT LINE (Detail45

REVOLVING CREDIT LINE (Details Textual) - USD ($)	1 Months Ended	3 Months Ended		7 Months Ended
	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Nov. 30, 2013	Feb. 29, 2012
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		$ 1,400,000		$ 1,400,000
Line of Credit Facility, Commitment Fee Percentage		7.25%
Debt Instrument, Interest Rate, Increase (Decrease)				2.50%
Gerber Finance, Inc [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity					$ 1,150,000	$ 1,500,000
Line of Credit Facility, Commitment Fee Percentage		1.75%
Debt Instrument, Collateral Fee		$ 1,500
Interest Expense		$ 45,579	$ 27,433
Debt Instrument, Interest Rate, Effective Percentage	9.65%	18.15%	9.65%	18.15%
Line of Credit Facility, Commitment Fee Amount		$ 10,625	$ 9,710
Line of Credit Facility, Increase (Decrease), Net	$ 1,400,000

EQUITY LINES OF CREDIT, OTHER46

EQUITY LINES OF CREDIT, OTHER TERMED DEBTS & ACQUISITION NOTES (Details) - USD ($)	Sep. 30, 2016	Jun. 30, 2016
Debt Instrument [Line Items]
Long-term portion	$ 3,073,409
Ford Credit Company [Member]
Debt Instrument [Line Items]
Long-term portion	14,952	$ 15,823
Less: current portion	(5,336)	(5,336)
Long-term portion	$ 9,616	$ 10,487

EQUITY LINES OF CREDIT, OTHER47

EQUITY LINES OF CREDIT, OTHER TERMED DEBTS & ACQUISITION NOTES (Details 1) - USD ($)	3 Months Ended	12 Months Ended
	Sep. 30, 2016	Jun. 30, 2016
Long-term Debt [Line Items]
Total of extended disability benefits	$ 24,363	$ 26,721
Less: amount representing interest	(1,592)	(1,855)
Present value of disability benefits	22,771	24,866
Less: current portion	(8,378)	(8,378)
Long-term portion	$ 14,393	$ 16,488

EQUITY LINES OF CREDIT, OTHER48

EQUITY LINES OF CREDIT, OTHER TERMED DEBTS & ACQUISITION NOTES (Details 2) - USD ($)	Sep. 30, 2016	Jun. 30, 2016
Long-term Debt	$ 3,073,409
Small Business Express Program loan [Member]
Long-term Debt	300,000	$ 0
Less: current portion	0	0
Long-term portion	$ 300,000	$ 0

EQUITY LINES OF CREDIT, OTHER49

EQUITY LINES OF CREDIT, OTHER TERMED DEBTS & ACQUISITION NOTES (Details 3) - USD ($)	Sep. 30, 2016	Jun. 30, 2016
Defined Benefit Plan Disclosure [Line Items]
Total minimum long term debt, capital lease & extended disability payments	$ 337,723	$ 40,689
Less: current portion	(13,714)	(13,714)
Long-term portion	$ 324,009	$ 26,975

EQUITY LINES OF CREDIT, OTHER50

EQUITY LINES OF CREDIT, OTHER TERMED DEBTS & ACQUISITION NOTES (Details 4) - USD ($)	Sep. 30, 2016	Jun. 30, 2016
Finite-Lived Intangible Assets, Gross	$ 2,675,702	$ 2,675,702
Accumulated Amortization	(50,410)	(46,532)
Net Total	2,625,292	2,629,170
Intellectual Property [Member]
Finite-Lived Intangible Assets, Gross	2,520,425	2,520,425
Customer List [Member]
Finite-Lived Intangible Assets, Gross	73,017	73,017
Non-Compete Clause [Member]
Finite-Lived Intangible Assets, Gross	25,399	25,399
Exclusive License [Member]
Finite-Lived Intangible Assets, Gross	$ 56,861	$ 56,861

EQUITY LINES OF CREDIT, OTHER51

EQUITY LINES OF CREDIT, OTHER TERMED DEBTS & ACQUISITION NOTES (Details 5) - USD ($)	Sep. 30, 2016	Jun. 30, 2016
Asset Acquisition Note Payable, net of current portion
Total Asset acquisition note payable	$ 2,020,425	$ 2,020,425
Dynamac agreement [Member]
Asset Acquisition Note Payable-current portion
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable	975,345	975,345
Asset Acquisition Note Payable, net of current portion
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Financial Liabilities	$ 1,045,080	$ 1,045,080

EQUITY LINES OF CREDIT, OTHER52

EQUITY LINES OF CREDIT, OTHER TERMED DEBTS & ACQUISITION NOTES (Details Textual)	1 Months Ended				3 Months Ended				12 Months Ended
	Feb. 28, 2016USD ($)	Jan. 21, 2016USD ($)	Mar. 31, 2013USD ($)	Mar. 27, 2013USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Dec. 31, 2014USD ($)	Sep. 30, 2014USD ($)	Jun. 30, 2016USD ($)
Amortization of Intangible Assets					$ 3,878	$ 3,878
Interest Expense, Long-term Debt					$ 127	533
Description of Postemployment Benefits					The Company is responsible for paying a former employee, disability benefits under a prior self-insured plan, through April, 2019. The plan requires monthly payments until the participant attains age 65. Interest has been imputed on this obligation at 5%.
Interest Expense, Lessee, Assets under Capital Lease					$ 302	402
Debt Instrument, Interest Rate, Stated Percentage					10.00%
State of Connecticut [Member] | Small Business Express Program loan [Member]
Debt Instrument, Interest Rate, Stated Percentage					3.00%
Debt Instrument, Face Amount					$ 300,000
Debt Instrument, Term					10 years
April 2019 [Member]
Debt Instrument, Periodic Payment					$ 499
Debt Instrument, Interest Rate, Stated Percentage					4.90%
Residential Real Estate [Member]
Long-term Line of Credit					$ 250,000				$ 250,000
Line of Credit Facility, Average Outstanding Amount					$ 217,259				$ 218,290
Line of Credit Facility, Interest Rate During Period					3.35%				3.35%
Interest Expense, Long-term Debt					$ 1,839	1,940
Principal Residence [Member]
Long-term Line of Credit					150,000				$ 150,000
Line of Credit Facility, Average Outstanding Amount					$ 98,873				$ 101,003
Line of Credit Facility, Interest Rate During Period					3.00%				3.00%
Interest Expense, Long-term Debt					$ 757	$ 910
Microphase Corp [Member]
Cost of Services, Licenses and Services							$ 50,000	$ 300,000
Well Fargo Bank [Member]
Long-term Line of Credit					$ 250,000
Microsemi Inc. [Member]
Business Acquisition Down Payment				$ 100,000
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Liabilities Accounts Payable				$ 155,277
Royalty Percentage				5.00%
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment				$ 750,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles				$ 155,277
Microsemi Inc. [Member] | Customer Lists [Member]
Finite-Lived Intangible Assets, Remaining Amortization Period					7 years
Microsemi Inc. [Member] | Noncompete Agreements [Member]
Finite-Lived Intangible Assets, Remaining Amortization Period					5 years
Dynamac Inc [Member]
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Liabilities Accounts Payable					$ 975,345				$ 975,345
Finite-Lived Intangible Assets, Remaining Amortization Period					12 years
Initial contract Price Deposit		$ 50,000
Business Acquisition Deposit Paid	$ 100,000				$ 350,000
Interest Accrual Rate Associated with Amortization Method of Present Value of Future Insurance Profits					7.00%
Present Value of Future Insurance ,Unrealized Investment					$ 2,020,425
Business Acquisition Deposit Paid Terms					series of four $550,000 payments payable on the note semi-annually, due in August 2016 & 2017 and February 2017 & 2018.
Business Acquisition Number Of Patents Acquired					2
Dynamac Inc [Member] | Additional Patents [Member]
Business Acquisition Number Of Patents Acquired					18
Dynamac Inc [Member] | Minimum [Member]
Finite-Lived Intangible Assets, Remaining Amortization Period				5 years
Dynamac Inc [Member] | Maximum [Member]
Finite-Lived Intangible Assets, Remaining Amortization Period				10 years
Notes Payable to Banks [Member] | Microsemi Inc. [Member]
Business Acquisition Down Payment			$ 100,000
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Current Liabilities Accounts Payable			$ 650,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities				$ 650,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)	Sep. 30, 2016	Jun. 30, 2016
Related Party Transaction [Line Items]
Total	$ 399,129	$ 395,007
Less: current portion	(212,490)	(137,150)
Notes Payable - Related Parties, net of current portion	186,639	257,857
Former Employee [Member]
Related Party Transaction [Line Items]
Total	154,732	152,434
Stockholders [Member]
Related Party Transaction [Line Items]
Total	119,656	118,762
Other Related Parties 1 [Member]
Related Party Transaction [Line Items]
Total	18,894	18,754
Other Related Parties 2 [Member]
Related Party Transaction [Line Items]
Total	$ 105,847	$ 105,057

RELATED PARTY TRANSACTIONS (D54

RELATED PARTY TRANSACTIONS (Details 1) - USD ($)	Sep. 30, 2016	Jun. 30, 2016
2,017	$ 1,168,567
2,018	1,244,494
2,019	382,552
2,020	66,329
2,021	32,179
thereafter	179,288
Total	$ 3,073,409
RELATED PARTY LOANS [Member]
EFFECTIVE INTEREST RATE as of September 30, 2016 Fiscal Years:	4.10%
2,017	$ 141,272
2,018	118,645
2,019	104,112
2,020	35,100
2,021	0
thereafter	0
Total	$ 399,129
OTHER TERMED DEBT [Member]
EFFECTIVE INTEREST RATE as of September 30, 2016 Fiscal Years:	5.50%
2,017	$ 13,714
2,018	14,410
2,019	9,599
2,020	0
2,021	0
thereafter	0
Total	$ 37,723
EQUITY LINES OF CREDIT [Member]
EFFECTIVE INTEREST RATE as of September 30, 2016 Fiscal Years:	3.30%
2,017	$ 38,236
2,018	39,363
2,019	238,533
2,020	0
2,021	0
thereafter	0
Total	$ 316,132
ACQUISITION NOTES [Member]
EFFECTIVE INTEREST RATE as of September 30, 2016 Fiscal Years:	7.00%
2,017	$ 975,345
2,018	1,045,080
2,019	0
2,020	0
2,021	0
thereafter	0
Total	$ 2,020,425
SMALL BUSINESS EXPRESS JOB CREATION INCENTIVE LOAN [Member]
EFFECTIVE INTEREST RATE as of September 30, 2016 Fiscal Years:	3.00%
2,017	$ 0
2,018	26,996
2,019	30,308
2,020	31,229
2,021	32,179
thereafter	179,288
Total	$ 300,000	$ 0

RELATED PARTY TRANSACTIONS (D55

RELATED PARTY TRANSACTIONS (Details Textual) - USD ($)	1 Months Ended		3 Months Ended		4 Months Ended	12 Months Ended
	Jan. 31, 2016	Nov. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Jun. 30, 2016	Jun. 30, 2015
Related Party Transaction [Line Items]
Due from Related Parties, Current			$ 33,295		$ 33,295	$ 33,295
Rental Income, Nonoperating			9,000			0
Interest Expense, Related Party			4,122	$ 6,938
Debt Conversion, Converted Instrument, Amount			479,129
MPhase Technologies, Inc [Member]
Related Party Transaction [Line Items]
Due from Related Parties, Current			33,295		33,295	$ 33,295
Stockholders [Member] | Convertible Notes Payable [Member]
Related Party Transaction [Line Items]
Debt Instrument, Periodic Payment			130
Stockholders [Member] | Convertible Notes Payable [Member] | Monthly Payments Through September 2017 [Member]
Related Party Transaction [Line Items]
Debt Instrument, Periodic Payment			$ 2,715
Debt Instrument, Interest Rate During Period			6.00%
Stockholders [Member] | Convertible Notes Payable [Member] | Monthly Payments Through August 2019 [Member]
Related Party Transaction [Line Items]
Debt Instrument, Periodic Payment			$ 910
Debt Instrument, Interest Rate During Period			3.00%
Stockholders [Member] | Convertible Notes Payable 1 [Member]
Related Party Transaction [Line Items]
Debt Instrument, Periodic Payment			$ 140
Stockholders [Member] | Convertible Notes Payable 1 [Member] | Monthly Payments Through September 2017 [Member]
Related Party Transaction [Line Items]
Debt Instrument, Periodic Payment			2,750
Stockholders [Member] | Convertible Notes Payable 1 [Member] | Monthly Payments Through August 2019 [Member]
Related Party Transaction [Line Items]
Debt Instrument, Periodic Payment			980
Former Employee [Member]
Related Party Transaction [Line Items]
Debt Instrument, Periodic Payment		$ 7,600
Debt Instrument, Interest Rate During Period		6.00%
Debt Conversion, Converted Instrument, Amount							$ 170,000
Debt Conversion, Converted Instrument, Shares Issued							113,333
Other Related Parties 1 [Member]
Related Party Transaction [Line Items]
Debt Instrument, Periodic Payment	$ 280		$ 875		$ 40
Debt Instrument, Interest Rate During Period	3.00%		6.00%
Debt Instrument, Frequency of Periodic Payment					4 months
Other Related Parties 1 [Member] | Related Party Debt [Member]
Related Party Transaction [Line Items]
Debt Instrument, Maturity Date, Description	August 2,019		September 2,017
Other Related Parties 2 [Member]
Related Party Transaction [Line Items]
Debt Instrument, Periodic Payment	$ 840		$ 2,425		$ 120
Debt Instrument, Interest Rate During Period	3.00%		6.00%
Debt Instrument, Frequency of Periodic Payment					4 months
Other Related Parties 2 [Member] | Related Party Debt [Member]
Related Party Transaction [Line Items]
Debt Instrument, Maturity Date, Description	August 2,019		April 2,017

STOCKHOLDERS' EQUITY (Details T

STOCKHOLDERS' EQUITY (Details Textual)	Oct. 04, 2014$ / sharesshares	Sep. 30, 2016USD ($)$ / sharesshares	Jun. 30, 2016USD ($)$ / sharesshares	Oct. 01, 2017shares	Oct. 02, 2016shares
Stockholders Equity [Line Items]
Common Stock, Shares Authorized	50,000,000	7,800,000	7,800,000
Preferred Stock, Shares Authorized	200,000	200,000	200,000
Preferred Stock, Par or Stated Value Per Share | $ / shares		$ 100	$ 100
Preferred Stock, Dividend Rate, Percentage		6.00%	6.00%
Preferred Stock, Shares Outstanding		15,382	15,382
Debt Conversion, Original Debt, Amount | $		$ 399,129
Stock Issued During Period, Value, Issued for Services | $		97,500
Preferred Stock, Value, Issued | $		$ 1,538,200	$ 1,538,200
Conversion of Stock, Shares Issued		1,025,467
Deferred Compensation Equity | $		$ 80,000
Stock Issued During Period, Shares, New Issues		300,000
Certain Debts Currently Convertible [Member]
Stockholders Equity [Line Items]
Debt Instrument, Convertible, Conversion Price | $ / shares		$ 1.50
Debt Instrument, Convertible, Number of Equity Instruments		53,334
Related Party Debt [Member]
Stockholders Equity [Line Items]
Debt Instrument, Convertible, Number of Equity Instruments		266,086
Scenario, Forecast [Member]
Stockholders Equity [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number				25,000	25,000
Private Placement [Member] | Warrant [Member]
Stockholders Equity [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares		$ 2.50
Warrant Term		5 years
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		33,334
2015 Stock Option Plan [Member]
Stockholders Equity [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance		250,000
Officers And Directors [Member] | Private Placement [Member]
Stockholders Equity [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		75,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares		$ 2
Board of Directors Chairman [Member]
Stockholders Equity [Line Items]
Common Stock, Shares Authorized	7,800,000
Common Stock [Member]
Stockholders Equity [Line Items]
Common Stock, Shares Authorized	4,800,000
Stock Issued During Period, Shares, Issued for Services		65,000
Stock Issued During Period, Value, Issued for Services | $		$ 97,500
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period		7 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $		$ 106,200
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate		112.50%
Deferred Compensation Arrangement with Individual, Compensation Expense | $		$ 35,400
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate		0.09%
Common Stock [Member] | Private Placement [Member]
Stockholders Equity [Line Items]
Stock Issued During Period, Shares, New Issues		33,334
Share Price | $ / shares		$ 1.50
Stock Issued During Period, Value, New Issues | $		$ 45,000
Common Stock [Member] | Director [Member]
Stockholders Equity [Line Items]
Stock Issued During Period, Shares, Issued for Services		55,000
Common Stock [Member] | Two Officer [Member]
Stockholders Equity [Line Items]
Stock Issued During Period, Shares, Issued for Services		10,000
Preferred Stock [Member]
Stockholders Equity [Line Items]
Preferred Stock, Par or Stated Value Per Share | $ / shares		$ 100
Preferred Stock, Dividend Rate, Percentage		6.00%
Cumulative Dividend To Be Declared | $		$ 267,051
Preferred Stock, Shares Outstanding		15,382
Convertible Preferred Stock [Member]
Stockholders Equity [Line Items]
Preferred Stock, Shares Authorized	2,000,000
Preferred Stock, Par or Stated Value Per Share | $ / shares	$ 100
Preferred Stock, Dividend Rate, Percentage	6.00%
Preferred Stock, Liquidation Preference Per Share | $ / shares	$ 100
Series A Preferred Stock [Member]
Stockholders Equity [Line Items]
Preferred Stock, Shares Outstanding		15,382
Convertible Preferred Stock Conversion Price | $ / shares		$ 1.50
Preferred Stock, Value, Issued | $		$ 267,051
Conversion of Stock, Shares Issued		1,025,467
Series A Preferred Stock [Member] | Dividend Declared [Member]
Stockholders Equity [Line Items]
Convertible Preferred Stock, Shares Issued upon Conversion		178,034
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares		$ 1.50

MAJOR CUSTOMERS AND SEGMENTS (D

MAJOR CUSTOMERS AND SEGMENTS (Details Textual) - USD ($)	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Revenue, Major Customer [Line Items]
Revenues	$ 1,373,064	$ 2,451,855
Customer Concentration Risk [Member]
Revenue, Major Customer [Line Items]
Accounts Receivable, Net	$ 122,598
Sales Revenue, Net [Member] | Customer Concentration Risk [Member]
Revenue, Major Customer [Line Items]
Concentration Risk, Percentage	58.00%	58.00%
US Customers [Member] | Sales Revenue, Net [Member]
Revenue, Major Customer [Line Items]
Concentration Risk, Percentage	87.00%	86.00%
Three Customers | Sales Revenue, Net [Member]
Revenue, Major Customer [Line Items]
Revenues		$ 1,428,581
Four Customers | Sales Revenue, Net [Member]
Revenue, Major Customer [Line Items]
Revenues	$ 796,996

COMMITMENTS AND CONTINGENCIES58

COMMITMENTS AND CONTINGENCIES (Details)	Sep. 30, 2016USD ($)
2,017	$ 325,579
2,018	323,807
2,019	320,852
2,020	325,721
2,021	335,348
Thereafter	691,126
Total	2,322,433
Shelton Facility Lease [Member]
2,017	298,358
2,018	307,240
2,019	316,361
2,020	325,721
2,021	335,348
Thereafter	691,126
Total	2,274,154
Car leases [Member]
2,017	27,221
2,018	16,567
2,019	4,491
2,020	0
2,021	0
Thereafter	0
Total	$ 48,279

COMMITMENTS AND CONTINGENCIES59

COMMITMENTS AND CONTINGENCIES (Details Textual)	1 Months Ended
	Aug. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Apr. 21, 2015USD ($)a	Dec. 31, 2017USD ($)	Sep. 30, 2016USD ($)	Jul. 02, 2016USD ($)	Jun. 30, 2015USD ($)
Schedule of Commitment and Contingencies [Line Items]
Operating Leases, Future Minimum Payments Due					$ 2,322,433
Two Officer [Member]
Schedule of Commitment and Contingencies [Line Items]
Accrued Salaries, Current							$ 250,000
Officer and Consultant [Member]
Schedule of Commitment and Contingencies [Line Items]
Accrued Salaries, Current							225,000
Due to Officers or Stockholders, Current		$ 80,000			$ 80,000
Officer One [Member]
Schedule of Commitment and Contingencies [Line Items]
Accrued Salaries, Current							160,000
Officer Two [Member]
Schedule of Commitment and Contingencies [Line Items]
Accrued Salaries, Current							$ 150,000
New Officer One [Member]
Schedule of Commitment and Contingencies [Line Items]
Accrued Salaries, Current						$ 175,000
New Officer Two [Member]
Schedule of Commitment and Contingencies [Line Items]
Accrued Salaries, Current						165,000
General Manager [Member]
Schedule of Commitment and Contingencies [Line Items]
Accrued Salaries, Current						$ 192,000
June 2016 [Member]
Schedule of Commitment and Contingencies [Line Items]
Sale Leaseback Transaction, Monthly Rental Payments		$ 18,400
August 2016 [Member]
Schedule of Commitment and Contingencies [Line Items]
Sale Leaseback Transaction, Monthly Rental Payments	$ 24,740
Scenario, Forecast [Member] | Fiscal Year 2017 [Member]
Schedule of Commitment and Contingencies [Line Items]
Other Commitment				$ 297,000
Connecticut Avenue LLC [Member] | Shelton [Member]
Schedule of Commitment and Contingencies [Line Items]
Area of Land | a			15,000
Operating Leases, Rent Expense			$ 15,000
Annual Escalations Percentage			3.00%
Lease Expiration Terms			7 years

SUBSEQUENT EVENTS (Details Text

SUBSEQUENT EVENTS (Details Textual) - USD ($)	Nov. 09, 2016	Oct. 31, 2016	Oct. 31, 2016	Sep. 30, 2016	Sep. 30, 2015
Debt Instrument, Interest Rate, Stated Percentage				10.00%
Proceeds from Issuance of Common Stock				$ 45,000	$ 0
Stock Issued During Period, Shares, New Issues				300,000
Debt Instrument, Description				(A) the entire original principal amount of such Note multiplied by 1.25 plus (B) the interest, if any, accrued quarterly, every 90 days, beginning on the date that is 90 days from the issuance date of such Note on the entire outstanding principal amount, will be due and payable by no later than five days from the date of the Offering; or (ii) in the event that the Offering has not closed prior to the first anniversary of the issuance date of such Note, on such first anniversary of the issuance date of such Note, the amount that is equal to (A) the amount that is equal to the entire original principal amount of such Note multiplied by 1.25, plus (B) the interest accrued quarterly, every 90 days, beginning on the date that is 90 days from the issuance date of such Note on the entire outstanding principal amount will be due and payable. In the event that the Offering closes on a date that is sooner than 90 days from the issuance date of the Notes, no interest will accrue.
Subsequent Event [Member]
Proceeds from Issuance of Common Stock	$ 400,000
Subsequent Event [Member] | Bridge Loan [Member]
Debt Instrument, Face Amount		$ 700,000	$ 700,000
Proceeds from Issuance of Debt		630,000
Payments of Debt Issuance Costs		70,000
Consulting Fees Payable		120,000	120,000
Interim Private Placement Amount Payable In Common Stock		$ 90,000	90,000
Subsequent Event [Member] | Private Placement [Member]
Placement Fees Payable			$ 50,000
Common Stock, Shares Subscribed but Unissued		333,334	333,334
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		333,334	333,334
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 2.50	$ 2.50
Consulting Fees Payable		$ 60,000	$ 60,000
Interim Private Placement Amount Payable In Common Stock		50,000	50,000
Common Stock, Share Subscribed but Unissued, Subscriptions Receivable		$ 450,000	$ 450,000