Moving iMage (MITQ) 10-Q15 Nov 212022 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Sep. 30, 2021	Nov. 04, 2021
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2021
Entity File Number	001-40511
Entity Registrant Name	Moving iMage Technologies, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-0232845
Entity Address State Or Province	CA
Entity Address, Address Line One	17760 Newhope Street
Entity Address, City or Town	Fountain Valley
Entity Address, Postal Zip Code	92708
City Area Code	714
Local Phone Number	751-7998
Title of 12(b) Security	Common Stock, $0.00001 par value
Trading Symbol	MITQ
Security Exchange Name	NYSEAMER
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		10,636,278
Entity Central Index Key	0001770236
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021
Current Assets:
Cash and cash equivalents	$ 11,029	$ 1,269
Accounts receivable, net	898	454
Inventories, net	1,911	1,534
Prepaid expenses and other	642	86
Total Current Assets	14,480	3,343
Long-Term Assets:
Property, plant and equipment, net	8	21
Intangibles, net	911	935
Goodwill	287	287
Other assets	16	1,133
Total Long-Term Assets	1,222	2,376
Total Assets	15,702	5,719
Current Liabilities:
Accounts payable	1,841	1,911
Accrued expenses	402	620
Customer deposits	2,709	1,339
Line of credit		590
Notes payable - related party		1,272
Notes payable - current	110	237
Unearned warranty revenue	34	34
Total Current Liabilities	5,096	6,003
Long-Term Liabilities:
Notes payable, net of current portion	588	1,702
Deferred rent	25	25
Total Long-Term Liabilities	613	1,727
Total Liabilities	5,709	7,730
Stockholders' Equity/Member's Deficit
Common stock, $0.00001 par value, 100,000,000 shares authorized, 10,636,278 shares issued and outstanding at September 30, 2021
Additional paid in capital	10,172
Members' Deficit		(2,011)
Accumulated deficit	(179)
Total Stockholders' Equity/Members' Deficit	9,993	(2,011)
Total Liabilities and Stockholders' Equity/Members' Deficit	$ 15,702	$ 5,719

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical)	Sep. 30, 2021$ / sharesshares
CONSOLIDATED BALANCE SHEETS
Common stock par value \| $ / shares	$ 0.00001
Common stock, Authorized	100,000,000
Common stock, Issued	10,636,278
Common stock, Outstanding	10,636,278

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
CONSOLIDATED STATEMENTS OF OPERATIONS
Net sales	$ 3,474	$ 1,757
Cost of goods sold	2,752	1,304
Gross profit	722	453
Operating expenses:
Research and development	54	27
Selling and marketing	544	283
General and administrative	663	450
Total operating expenses	1,261	760
Loss from operations	(539)	(307)
Other expense:
Interest expense	37	82
Total other expense	37	82
Net loss	$ (576)	$ (389)
Weighted average shares outstanding, basic and diluted	9,809,264	5,666,667	[1]
Net loss per share, basic and diluted	$ (0.06)	$ (0.07)

[1]	The weighted average shares outstanding and net loss per share at September 30, 2020 are proforma information.

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' AND MEMBERS EQUITY - USD ($)	Common Stock	Additional Paid-in Capital	Retained Earnings (Accumulated Deficit)	LLC Members Equity (Deficit)	Total
Balance at the beginning at Jun. 30, 2020				$ (969,000)	$ (969,000)
Net loss				(389,000)	(389,000)
Balance at the end at Sep. 30, 2020				(1,358,000)	(1,358,000)
Balance at the beginning at Jun. 30, 2021				(2,011,000)	(2,011,000)
Reverse recapitalization				1,280,000	1,280,000
Reverse recapitalization (in shares)	3,316,667
Common shares issued for LLC Members interest		$ (1,128,000)	$ 397,000	$ 731,000
Common shares issued for LLC Members interest (in shares)	2,350,000
Shares of common stock issued for cash, net of costs		11,244,000			11,244,000
Shares of common stock issued for cash, net of costs (in shares)	4,830,000
Cashless exercise of warrants (in shares)	139,611
Stock option compensation expense		56,000			56,000
Net loss			(576,000)		(576,000)
Balance at the end at Sep. 30, 2021		$ 10,172,000	$ (179,000)		$ 9,993,000
Balance at the end (in shares) at Sep. 30, 2021	10,636,278

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net loss	$ (576,000)	$ (389,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Provision for doubtful accounts	(90,000)	40,000
Depreciation expense	13,000	34,000
Amortization expense	24,000	24,000
Deferred rent		2,000
Stock option compensation expense	56,000
Changes in operating assets and liabilities
Accounts receivable	(354,000)	171,000
Inventories	(377,000)	(25,000)
Prepaid expenses and other	(554,000)	(148,000)
Accounts payable	(70,000)	(167,000)
Accrued expenses	(219,000)	(133,000)
Unearned warranty revenue		(9,000)
Customer deposits	1,370,000	(249,000)
Net cash used in operating activities	(777,000)	(849,000)
Cash flows from financing activities
Cash acquired through Exchange Agreement	8,000
Proceeds from equity raises, net of offering costs	12,360,000
Net borrowings (payments) on notes payable	(1,241,000)	14,000
Payments on line of credit	(590,000)	(60,000)
Proceeds from PPP notes payable		784,000
Net cash provided by financing activities	10,537,000	738,000
Net increase (decrease) in cash and cash equivalents	9,760,000	(111,000)
Cash and cash equivalents, beginning of the period	1,269,000	1,058,000
Cash and cash equivalents, end of the period	11,029,000	947,000
Non-cash investing and financing activities:
Deferred IPO costs		121,000
Reclassification of IPO related costs from other assets to equity	1,116,000
Reverse Capitalization, net of cash received	1,272,000
Cash paid during the period:
Interest	$ 37,000	$ 82,000

BUSINESS ACTIVITY AND SUMMARY O

BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Sep. 30, 2021
BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 — BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization: Moving iMage Acquisition Co. (DBA “Caddy Products”), designs, develops and manufactures innovative products for the entertainment, cinema, grocery, worship, restaurant, sports and restroom industries. Share Exchange: In connection with the Exchange Agreement, the outstanding Notes Payable of $1,272,000 between PubCo and MiT LLC was forgiven and eliminated in consolidation. As a result of the Share Exchange, MiT LLC became a wholly-owned subsidiary of PubCo and is the entity where the Company’s business operations are located. Because the Share Exchange occurred subsequent to the Company’s fiscal year ended June 30, 2021, the historical financial statements presented in this Quarterly Report on Form 10-Q includes information derived from the audited consolidated financial statements of MiT LLC at June 30, 2021 and the unaudited results of operations and cash flows of MT, LLC for the three months ended September 30, 2020. Initial Public Offering: per share. None of the potentially dilutive securities were included in the computation of diluted earnings per share as their impact would be anti-dilutive. In connection with the IPO, all MiT LLC membership units were exchanged for 2,350,000 shares of the Company’s common stock. On July 12, 2021, in connection with the IPO, warrants to purchase 139,611 shares of the Company’s common stock were exercised on a cashless basis. NOTE 1 — BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) COVID-19 Impact and Liquidity The repercussions of the COVID-19 global pandemic resulted in a significant impact to our customers, specifically those in the entertainment and cinema industries. Cinemas have been shuttered since March 2020 in an effort to stem the spread of COVID-19 and studios, for the most part, have rescheduled their film releases until cinemas can reopen. Specifically, the pandemic has had a material adverse effect on our business. A significant number of our customers have temporarily ceased operations and others have cancelled or pushed back the delivery of pending product orders and/or delayed the start of scheduled theater refurbishing and construction projects. In addition, we have experienced increased challenges in, or cost of, acquiring new customers and increased risk in collectability of accounts receivable. As a result of the aforementioned factors, our financial and operating results for the quarters ended September 30, 2021 and 2020, have been adversely affected. Additionally, our projected financial and operating results for the remainder of fiscal 2022 are expected to be materially adversely affected. The ultimate impact of the COVID-19 pandemic on our business and results of operations in fiscal 2022 and beyond is unknown and will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration and severity of the COVID-19 pandemic and any additional preventative and protective actions that governments, or we, or our customers, may direct, which may result in an extended period of continued business disruption and reduced operations. We expect that our results of operations, including revenues, in future periods will continue to be adversely impacted by the COVID-19 pandemic and its negative effects on global economic conditions, which include the possibility of a global recession. Recently, several of the larger theater chains have reopened in many parts of the United States. The ability of these chains to reopen was predicated in large part on decisions by state and local officials to allow, limit or prohibit the reopening of establishments such as cinemas in response to regionally specific COVID-19 outbreaks. Such reopenings have been done on a gradual basis with limited occupancy and specific procedures, products, and technologies required to be implemented to protect the safety and health of returning patrons and employees. In response to uncertainties associated with the COVID-19 pandemic, we have taken, and are continuing to take, significant steps to preserve cash and remain in a strong competitive position when the current crisis subsides by eliminating non-essential costs, reducing employee hours and deferring all non-essential capital expenditures to minimum levels. Among other mitigating actions, we have implemented targeted furloughs, significantly reduced our service and distribution activities and temporarily reduced compensation of our executive officers and certain other employees. NOTE 1 — BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) We have also implemented remote work policies for many employees, and the resources available to such employees may not enable them to maintain the same level of productivity and efficiency, and these and other employees may face additional demands on their time, such as increased responsibilities resulting from school closures or illness of family members. Our increased reliance on remote access to our information systems also increases our exposures to potential cybersecurity breaches. As of the date these Condensed Consolidated Financial Statements were issued, with the actions taken above, existing cash, including the cash raised from our initial public offering (See Initial Public Offering), the Company will have sufficient liquidity to fund operations and essential capital expenditures for the 12 months from the date these condensed consolidated financial statements were available to be issued. Principles of Consolidation Basis of Presentation: Unaudited Interim Consolidated Financial Statements: Measurement of Fair Values : — Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. — Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices). — Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. Deferred Offering Costs: As of June 30, 2021, $1.1 million of deferred offering costs are capitalized in other assets. After completion of the IPO in July 2021, these costs have been recorded in Stockholder’s Equity as a reduction of proceeds received as a result of the offering. NOTE 1 — BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Use of Estimates: Concentration of Cash: Accounts Receivable: Inventories: Revenue Recognition: Revenue from Contracts with Customers (“ASC 606”). Revenue is recognized when control of the promised goods is transferred at the point of shipment to a customer and when performance conditions are satisfied as per the agreement, in an amount that reflects the consideration that we expect to receive in exchange for those goods as per the agreement with the customer. We generate all our revenue from agreements with customers. In case there are agreements with multiple performance obligations, we identify each performance obligation and evaluate whether the performance obligations are distinct within the context of the agreement at the agreement’s inception. Performance obligations that are not distinct at agreement inception are combined. We allocate the transaction price to each distinct performance obligation proportionately based on the estimated standalone selling price for each performance obligation and then evaluate how the services are transferred to the customer to determine the timing of revenue recognition. The Company considers the U.S. GAAP criteria for determining whether to report revenue gross as a principal versus net as an agent. Factors considered include whether the Company is the primary obligor, has risks and rewards of ownership, and bears the risk that a customer may not pay for the products provided or services performed. If there are circumstances where the above criteria are not met, revenues recognized are presented net of cost of goods sold. Contract assets consist of conditional or unconditional rights to consideration. Accounts receivable represent amounts billed to customers where the Company has an enforceable right to payment for performance completed to date (i.e., unconditional rights to consideration). Accounts receivable balance as of July 1, 2020 was $.809 million. The Company does not have contract assets that represent conditional rights to consideration. NOTE 1 — BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Contract liabilities consist of refund and warranty liabilities, as well as deposits received in advance on sales to certain customers. Such deposits are reflected as customer deposits and recognized in revenue when control of the products is transferred or when performance conditions are satisfied per the agreement. The change in contract liabilities (customer deposits and unearned warranty revenue) during the three months ended September 30, 2021 included $.573 million for revenue recognized that was included in contract liability as of July Cost of goods sold includes cost of inventory sold during the period, net of vendor discounts and allowances, and shipping and handling costs, and sales taxes. Taxes collected from customers are included in accounts payable on a net basis (excluded from revenues) until remitted to the government. Deferred contract acquisition costs consist of sales commissions paid to the sales force and the related employer payroll taxes, collectively “deferred contract acquisition costs”, are considered incremental and recoverable costs of obtaining a contract with a customer. The Company has determined that sales commissions paid are an immaterial component of obtaining a customer’s contract and has elected to expense sales commissions when earned. For the three For the three Months ended Months ended Disaggregation of Revenue (in 000’s): September 30 2021 September 30 2020 Equipment upon delivery (point in time) $ 3,433 $ 1,722 Installation (point in time) 41 35 Total revenues $ 3,474 $ 1,757 Revenue from the sale of equipment is recognized upon delivery of such equipment to customers and performance conditions are satisfied. Revenue from installation is recognized upon completion of installation project and performance obligation is complete. Software subscription revenue for remote monitoring services is recognized on a straight-line basis over the term of the contract, usually one year. Services revenues are generally recognized over time as the contracts are performed. Returns and Allowances: Shipping and Handling Costs: Advertising Costs: are expensed as incurred within selling and marketing expenses. NOTE 1 — BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Goodwill and Intangible Assets: The Company tested goodwill impairment in relation to the COVID-19 pandemic and no impairments were identified for the three months ended September 30, 2021 or 2020. Goodwill is at risk of future impairment in the event of significant unexpected changes in the Company’s forecasted future results and cash flows, or if there is a negative change in the long-term outlook for the business or in other factors such as the discount rate, or if there is a decline in the stock price. Intangible assets arising from business combinations, such as customer relationships, trade names, and/or intellectual property, are initially recorded at fair value. The Company amortizes these intangible assets over the determined useful life which generally ranges from 11 to 20 years. The Company reviews its intangible assets for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be fully recoverable. There were no intangible asset impairments recognized for the three months ended September 30, 2021 or 2020. Business Combinations: Income Taxes: The Company evaluates the recoverability of deferred tax assets and establishes a valuation allowance when it is more likely than not that some portion or all the deferred tax assets will not be realized. Because the Company has had recurring losses from operations, at September 30, 2021 it has taken a full valuation allowance against all potential deferred tax assets. Prior to July 7, 2021, MiT LLC was a limited liability company treated as a partnership for federal and state income tax purposes with all income tax liabilities and/or benefits of the Company being passed through to the members. As such, there is no recognition of federal or state income taxes in the financial statements prior to July 7 th NOTE 1 — BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Product Warranty: The changes in the Company’s aggregate warranty liabilities were as follows for the following periods (in thousands): September 30, June 30, 2021 2021 Product warranty liability, beginning of period $ 29 65 Accruals for warranties issued 7 29 Change in estimates — (37) Settlements made (3) (28) Product warranty liability, end of the period $ 33 $ 29 Research and Development: Recently Issued Accounting Pronouncements: Leases (Topic 842 In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes Other pronouncements issued by the FASB with future effective dates are either not applicable or not significant to the consolidated financial statements of the consolidated company.

LOSS PER SHARE

LOSS PER SHARE	3 Months Ended
LOSS PER SHARE	Sep. 30, 2021
LOSS PER SHARE
LOSS PER SHARE	NOTE 2 — LOSS PER SHARE Basic earnings/(loss) per share data for each period presented is computed using the weighted average number of shares of common stock outstanding during each such period. Diluted earnings/(loss) per share data is computed using the weighted average number of common shares outstanding during each period. Dilutive common equivalent shares consist of shares that would be issued upon the exercise of stock options and warrants, computed using the treasury stock method. A reconciliation of basic and diluted earnings/(loss) per share is as follows: For the Three Months Ended September 30, 2021 Numerator: Net loss $ (576,000) Denominator: Weighted average common shares outstanding, basic and diluted 9,809,264 Earnings/(loss) per share Basic and diluted $ (0.06) The following securities were excluded from the calculation of diluted loss per share in each period because their inclusion would have been anti-dilutive: For the Three Months Ended September 30, 2021 Options 150,000 Warrants 241,500 Total potentially dilutive shares 391,500 The Pro forma weighted average shares outstanding and net loss per share has been presented for the three months ended September 30, 2020, to show the effect of the exchange of Class B Membership Interests of MIT LLC for shares of common stock of PubCo prior to the initial public offering.

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	3 Months Ended
PROPERTY, PLANT AND EQUIPMENT	Sep. 30, 2021
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT	NOTE 3 — PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consist of the following (in thousands): September 30, June 30, 2021 2021 Production equipment $ 307 $ 307 Leasehold improvements 202 202 Furniture and fixtures 45 45 Computer equipment 44 44 Other equipment 114 114 712 712 Accumulated depreciation (704) (691) Net property plant and equipment $ 8 $ 21 Depreciation expense related to property, plant and equipment was $13,000 and $34,000 for the three NOTE 3 — PROPERTY, PLANT AND EQUIPMENT (continued) Depreciation of property, plant and equipment is calculated using the straight-line method over their estimated useful lives as follows: Useful Lives Leasehold improvements 5 years or remaining lease term Furniture and fixtures 5 years Production equipment 3 – 7 years Computer equipment 3 years Other equipment 3 – 7 years

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	3 Months Ended
GOODWILL AND INTANGIBLE ASSETS	Sep. 30, 2021
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS	NOTE 4 — GOODWILL AND INTANGIBLE ASSETS The following table summarizes the Company’s intangible assets as of September 30, 2021 (in thousands): Amortization Gross Asset Accumulated Net Book Period Cost Amortization Value Customer relationships 11 years $ 970 $ 191 $ 779 Patents 20 years 70 8 62 Trademark 20 years 78 8 70 $ 1,118 $ 207 $ 911 The following table summarizes the Company’s intangible assets as of June 30, 2021 (in thousands): Amortization Gross Asset Accumulated Net Book Period Cost Amortization Value Customer relationships 11 years $ 970 $ 169 $ 801 Patents 20 years 70 7 63 Trademark 20 years 78 7 71 $ 1,118 $ 183 $ 935 Amortization expense was $24,000 and $24,000 for the three Estimated amortization expense related to intangible assets subject to amortization at September 30,2021 in each of the five fiscal years subsequent to September 30, 2021, and thereafter is as follows (amounts in thousands): 2022 remaining $ 72 2023 96 2024 96 2025 96 2026 96 Thereafter 455 Total $ 911

ACCRUED EXPENSES

ACCRUED EXPENSES	3 Months Ended
ACCRUED EXPENSES	Sep. 30, 2021
ACCRUED EXPENSES
ACCRUED EXPENSES	NOTE 5 — ACCRUED EXPENSES Accrued expenses consist of the following (in thousands): September 30, June 30, 2021 2021 Employee compensation $ 228 $ 485 Others 174 135 Total $ 402 $ 620

DEBT

DEBT	3 Months Ended
DEBT	Sep. 30, 2021
DEBT
DEBT	NOTE 6 — DEBT Line of Credit In October 2019, MiT LLC executed a line of credit agreement with an unaffiliated lender to provide a $1.0 million asset-based bridge loan to be used for working capital purposes. Funds borrowed bore interest at 13% per annum and were due and payable one year from the origination date of the loan. The loan was secured by all assets of MiT LLC and was personally guaranteed by Phil Rafnson, our CEO and Chairman of the Board. Sound Management Investors, LLC, an entity controlled by Mr. Rafnson, pledged all membership units of MiT LLC held by it as further security for the repayment of such loan. In connection with this borrowing, the lender was issued warrants to acquire shares of the Company's common stock upon completion of its IPO. On the effective date of the IPO, the lender exercised these warrants to acquire 94,723 shares of the common stock on a cashless basis. Approximately $400,000 of the proceeds from the loan were used to pay amounts owed to Caddy for the closing note further to the Caddy acquisition. No further borrowings are available under this agreement from March 31, 2020. As of June 30, 2021, the outstanding balance of this line of credit was $590,000. In July 2021, the outstanding balance, and all accrued interest, was paid in full. Long-term debt at September 30, 2021 was as follows (in thousands): September 30, 2021 Balance Current Long Term PPP loan $ 698 $ 110 $ 588 Total $ 698 $ 110 $ 588 Long-term debt at June 30, 2021 was as follows (in thousands): June 30, 2021 Balance Current Long Term Caddy promissory note $ 1,059 $ 142 $ 917 PPP loan 698 73 625 Caddy indemnity promissory note 182 22 160 Total $ 1,939 $ 237 $ 1,702 The Caddy Promissory note is payable in monthly installments through August 2024 at an interest rate of Prime plus 2.75%. The Caddy Indemnity note is payable in monthly installments due July 2024 at an interest rate of Prime plus 2.75%. On January 1, 2020, the interest rate margin increased to 3.75% on both notes. All of the notes are collateralized by Caddy assets. In addition, the notes are guaranteed by Phil Rafnson, the Company’s majority shareholder. In August 2021, all related notes and balances were paid in full. NOTE 6 — DEBT (continued) Paycheck Protection Program On May 6, 2020, the Company received loan proceeds in the amount of approximately $694,000 under the Paycheck Protection Program (“PPP”). On March 13, 2021, the Company received a second PPP loan receiving proceeds in the amount of approximately $698,000. The PPP, established as part of the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), provides for loans to qualifying businesses for amounts up to 2.5 times of the average monthly payroll expenses of the qualifying business. The loans and accrued interest are forgivable as long as the borrower uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. The amount of loan forgiveness will be reduced if the borrower terminates employees or reduces salaries during the eight-week period. In May 2021, the Company received notification from the Small Business Administration that the first loan in the amount of $694,000, including accrued interest, has been fully forgiven. As of June 30, 2021, the outstanding balance of the second PPP loan was $698,000, of which $110,000 is included in notes payable current in the condensed consolidated balance sheets. Any unforgiven portion of a PPP loan is payable over two years at an interest rate of 1%, with a deferral of payments for the first six months. The Company used the proceeds for purposes consistent with the PPP. While the Company currently believes that its use of the second loan proceeds will meet the conditions for forgiveness of the loan, we cannot assure you that we will not take actions that could cause the Company to be ineligible for forgiveness of the second loan, in whole or in part.

STOCKHOLDERS' MEMBERS' EQUITY A

STOCKHOLDERS' MEMBERS' EQUITY AND STOCK BASED COMPENSATION	3 Months Ended
STOCKHOLDERS' MEMBERS' EQUITY AND STOCK BASED COMPENSATION	Sep. 30, 2021
STOCKHOLDERS'/MEMBERS' EQUITY AND STOCK BASED COMPENSATION
STOCKHOLDERS'/MEMBERS' EQUITY AND STOCK BASED COMPENSATION	NOTE 7 — STOCKHOLDERS’/MEMBERS' EQUITY AND STOCK BASED COMPENSATION In 2019, the Company adopted the 2019 Omnibus Incentive Plan (the “Plan”). The Plan, as amended, provides for the issuance of stock based awards to employees. As of September 30, 2021, the Plan provides for the issuance of up to 750,000 stock based awards. There are 600,000 stock based awards available to grant under the Plan at September 30, 2021. In connection with the Company’s IPO, the underwriters received warrants to acquire 241,500 shares of the Company’s common stock at an exercise price of $3.75 per share. None of the potentially dilutive securities were included in the computation of diluted earnings per share as their impact would be anti-dilutive. In July 2021, the Company granted options to non-employee directors to purchase an aggregate of 150,000 shares of its common stock at an exercise price of $3.00 per shares. The options vest one year from the date of grant, expire ten years from the date of grant and had an aggregate grant date fair value of $244,200, which will be recognized ratably over the vesting period. These options, which were the only options granted during the three months ended September 30, 2021, had a grant-date fair value of $ 1.63 per share. The Company recognized compensation expense for stock option awards of $56,000 during the three months ended September 30, 2021 in its condensed consolidated statements of operations. None of the these potentially dilutive securities were included in the computation of diluted earnings per share as their impact would be anti-dilutive. At June 30, 2021, there was $188,000 of total unrecognized compensation cost related to nonvested stock option awards that is expected to be recognized over a weighted average period of 9 months. During the three months ended September 30, 2021, warrant holders exercised 139,611 warrants on a cashless basis.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
RELATED PARTY TRANSACTIONS	Sep. 30, 2021
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	NOTE 8 — RELATED PARTY TRANSACTIONS As of June 30, 2021, there was an outstanding balance of $1.272 million owed to the PubCo by MiT LLC, which is reflected in the June 30, 2021 balance sheet as Note payable – related party. Per terms of the loan agreement, this entire amount was forgiven in conjunction with the Company’s IPO in July 2021 and eliminated in consolidation in connection with the Exchange Agreement. In July 2021, the Company provided a discretionary $50,000 payment to the Company’s CEO and Chairman of the Board of Directors for personal guarantees provided in conjunction with financing Company debt. See Note 6.

CUSTOMER AND VENDOR CONCENTRATI

CUSTOMER AND VENDOR CONCENTRATIONS	3 Months Ended
CUSTOMER AND VENDOR CONCENTRATIONS	Sep. 30, 2021
CUSTOMER AND VENDOR CONCENTRATIONS
CUSTOMER AND VENDOR CONCENTRATIONS	NOTE 9 — CUSTOMER AND VENDOR CONCENTRATIONS Customers : Two customers accounted for 49% and 10% of the Company’s sales for the three months ended September 30, 2020. There was no outstanding balances related to these customers at June 30, 2021. Vendors: Approximately 25% and 12% of the Company’s purchases were provided by two vendors for the three months ended September 30, 2020.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
COMMITMENTS AND CONTINGENCIES	Sep. 30, 2021
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	NOTE 10 — COMMITMENTS AND CONTINGENCIES Operating Leases: Future minimum lease payments at September 30, 2021 under these arrangements are as follows: (in thousands) Total Operating leases Payments 2022 remaining $ 214 2023 293 2024 302 2025 174 Total future minimum lease payments $ 983 Legal Matters:

BUSINESS ACTIVITY AND SUMMARY_2

BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Sep. 30, 2021
BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization	Organization: Moving iMage Acquisition Co. (DBA “Caddy Products”), designs, develops and manufactures innovative products for the entertainment, cinema, grocery, worship, restaurant, sports and restroom industries.
Share Exchange	Share Exchange: In connection with the Exchange Agreement, the outstanding Notes Payable of $1,272,000 between PubCo and MiT LLC was forgiven and eliminated in consolidation. As a result of the Share Exchange, MiT LLC became a wholly-owned subsidiary of PubCo and is the entity where the Company’s business operations are located. Because the Share Exchange occurred subsequent to the Company’s fiscal year ended June 30, 2021, the historical financial statements presented in this Quarterly Report on Form 10-Q includes information derived from the audited consolidated financial statements of MiT LLC at June 30, 2021 and the unaudited results of operations and cash flows of MT, LLC for the three months ended September 30, 2020.
Initial Public Offering	Initial Public Offering: per share. None of the potentially dilutive securities were included in the computation of diluted earnings per share as their impact would be anti-dilutive. In connection with the IPO, all MiT LLC membership units were exchanged for 2,350,000 shares of the Company’s common stock. On July 12, 2021, in connection with the IPO, warrants to purchase 139,611 shares of the Company’s common stock were exercised on a cashless basis. NOTE 1 — BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
COVID19 Impact and Liquidity	COVID-19 Impact and Liquidity The repercussions of the COVID-19 global pandemic resulted in a significant impact to our customers, specifically those in the entertainment and cinema industries. Cinemas have been shuttered since March 2020 in an effort to stem the spread of COVID-19 and studios, for the most part, have rescheduled their film releases until cinemas can reopen. Specifically, the pandemic has had a material adverse effect on our business. A significant number of our customers have temporarily ceased operations and others have cancelled or pushed back the delivery of pending product orders and/or delayed the start of scheduled theater refurbishing and construction projects. In addition, we have experienced increased challenges in, or cost of, acquiring new customers and increased risk in collectability of accounts receivable. As a result of the aforementioned factors, our financial and operating results for the quarters ended September 30, 2021 and 2020, have been adversely affected. Additionally, our projected financial and operating results for the remainder of fiscal 2022 are expected to be materially adversely affected. The ultimate impact of the COVID-19 pandemic on our business and results of operations in fiscal 2022 and beyond is unknown and will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration and severity of the COVID-19 pandemic and any additional preventative and protective actions that governments, or we, or our customers, may direct, which may result in an extended period of continued business disruption and reduced operations. We expect that our results of operations, including revenues, in future periods will continue to be adversely impacted by the COVID-19 pandemic and its negative effects on global economic conditions, which include the possibility of a global recession. Recently, several of the larger theater chains have reopened in many parts of the United States. The ability of these chains to reopen was predicated in large part on decisions by state and local officials to allow, limit or prohibit the reopening of establishments such as cinemas in response to regionally specific COVID-19 outbreaks. Such reopenings have been done on a gradual basis with limited occupancy and specific procedures, products, and technologies required to be implemented to protect the safety and health of returning patrons and employees. In response to uncertainties associated with the COVID-19 pandemic, we have taken, and are continuing to take, significant steps to preserve cash and remain in a strong competitive position when the current crisis subsides by eliminating non-essential costs, reducing employee hours and deferring all non-essential capital expenditures to minimum levels. Among other mitigating actions, we have implemented targeted furloughs, significantly reduced our service and distribution activities and temporarily reduced compensation of our executive officers and certain other employees. NOTE 1 — BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) We have also implemented remote work policies for many employees, and the resources available to such employees may not enable them to maintain the same level of productivity and efficiency, and these and other employees may face additional demands on their time, such as increased responsibilities resulting from school closures or illness of family members. Our increased reliance on remote access to our information systems also increases our exposures to potential cybersecurity breaches. As of the date these Condensed Consolidated Financial Statements were issued, with the actions taken above, existing cash, including the cash raised from our initial public offering (See Initial Public Offering), the Company will have sufficient liquidity to fund operations and essential capital expenditures for the 12 months from the date these condensed consolidated financial statements were available to be issued.
Principles of Consolidation	Principles of Consolidation
Basis of Presentation	Basis of Presentation:
Unaudited Interim Consolidated Financial Statements	Unaudited Interim Consolidated Financial Statements:
Measurement of Fair Values	Measurement of Fair Values : — Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. — Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices). — Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
Deferred Offering Costs	Deferred Offering Costs: As of June 30, 2021, $1.1 million of deferred offering costs are capitalized in other assets. After completion of the IPO in July 2021, these costs have been recorded in Stockholder’s Equity as a reduction of proceeds received as a result of the offering.
Use of Estimates	NOTE 1 — BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Use of Estimates:
Concentration of Cash	Concentration of Cash:
Accounts Receivable	Accounts Receivable:
Inventories	Inventories:
Revenue Recognition	Revenue Recognition: Revenue from Contracts with Customers (“ASC 606”). Revenue is recognized when control of the promised goods is transferred at the point of shipment to a customer and when performance conditions are satisfied as per the agreement, in an amount that reflects the consideration that we expect to receive in exchange for those goods as per the agreement with the customer. We generate all our revenue from agreements with customers. In case there are agreements with multiple performance obligations, we identify each performance obligation and evaluate whether the performance obligations are distinct within the context of the agreement at the agreement’s inception. Performance obligations that are not distinct at agreement inception are combined. We allocate the transaction price to each distinct performance obligation proportionately based on the estimated standalone selling price for each performance obligation and then evaluate how the services are transferred to the customer to determine the timing of revenue recognition. The Company considers the U.S. GAAP criteria for determining whether to report revenue gross as a principal versus net as an agent. Factors considered include whether the Company is the primary obligor, has risks and rewards of ownership, and bears the risk that a customer may not pay for the products provided or services performed. If there are circumstances where the above criteria are not met, revenues recognized are presented net of cost of goods sold. Contract assets consist of conditional or unconditional rights to consideration. Accounts receivable represent amounts billed to customers where the Company has an enforceable right to payment for performance completed to date (i.e., unconditional rights to consideration). Accounts receivable balance as of July 1, 2020 was $.809 million. The Company does not have contract assets that represent conditional rights to consideration. NOTE 1 — BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Contract liabilities consist of refund and warranty liabilities, as well as deposits received in advance on sales to certain customers. Such deposits are reflected as customer deposits and recognized in revenue when control of the products is transferred or when performance conditions are satisfied per the agreement. The change in contract liabilities (customer deposits and unearned warranty revenue) during the three months ended September 30, 2021 included $.573 million for revenue recognized that was included in contract liability as of July Cost of goods sold includes cost of inventory sold during the period, net of vendor discounts and allowances, and shipping and handling costs, and sales taxes. Taxes collected from customers are included in accounts payable on a net basis (excluded from revenues) until remitted to the government. Deferred contract acquisition costs consist of sales commissions paid to the sales force and the related employer payroll taxes, collectively “deferred contract acquisition costs”, are considered incremental and recoverable costs of obtaining a contract with a customer. The Company has determined that sales commissions paid are an immaterial component of obtaining a customer’s contract and has elected to expense sales commissions when earned. For the three For the three Months ended Months ended Disaggregation of Revenue (in 000’s): September 30 2021 September 30 2020 Equipment upon delivery (point in time) $ 3,433 $ 1,722 Installation (point in time) 41 35 Total revenues $ 3,474 $ 1,757 Revenue from the sale of equipment is recognized upon delivery of such equipment to customers and performance conditions are satisfied. Revenue from installation is recognized upon completion of installation project and performance obligation is complete. Software subscription revenue for remote monitoring services is recognized on a straight-line basis over the term of the contract, usually one year. Services revenues are generally recognized over time as the contracts are performed.
Returns and Allowances	Returns and Allowances:
Shipping and Handling Costs	Shipping and Handling Costs:
Goodwill and Intangible Assets	Goodwill and Intangible Assets: The Company tested goodwill impairment in relation to the COVID-19 pandemic and no impairments were identified for the three months ended September 30, 2021 or 2020. Goodwill is at risk of future impairment in the event of significant unexpected changes in the Company’s forecasted future results and cash flows, or if there is a negative change in the long-term outlook for the business or in other factors such as the discount rate, or if there is a decline in the stock price. Intangible assets arising from business combinations, such as customer relationships, trade names, and/or intellectual property, are initially recorded at fair value. The Company amortizes these intangible assets over the determined useful life which generally ranges from 11 to 20 years. The Company reviews its intangible assets for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be fully recoverable. There were no intangible asset impairments recognized for the three months ended September 30, 2021 or 2020.
Business Combinations	Business Combinations:
Product Warranty	Product Warranty: The changes in the Company’s aggregate warranty liabilities were as follows for the following periods (in thousands): September 30, June 30, 2021 2021 Product warranty liability, beginning of period $ 29 65 Accruals for warranties issued 7 29 Change in estimates — (37) Settlements made (3) (28) Product warranty liability, end of the period $ 33 $ 29
Research and Development	Research and Development:
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements: Leases (Topic 842 In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes Other pronouncements issued by the FASB with future effective dates are either not applicable or not significant to the consolidated financial statements of the consolidated company.

BUSINESS ACTIVITY AND SUMMARY_3

BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Sep. 30, 2021
BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Summary of disaggregation of Revenue	For the three For the three Months ended Months ended Disaggregation of Revenue (in 000’s): September 30 2021 September 30 2020 Equipment upon delivery (point in time) $ 3,433 $ 1,722 Installation (point in time) 41 35 Total revenues $ 3,474 $ 1,757
Summary of warranty liabilities	The changes in the Company’s aggregate warranty liabilities were as follows for the following periods (in thousands): September 30, June 30, 2021 2021 Product warranty liability, beginning of period $ 29 65 Accruals for warranties issued 7 29 Change in estimates — (37) Settlements made (3) (28) Product warranty liability, end of the period $ 33 $ 29

LOSS PER SHARE (Tables)

LOSS PER SHARE (Tables)	3 Months Ended
LOSS PER SHARE (Tables)	Sep. 30, 2021
LOSS PER SHARE
Schedule of basic and diluted earnings (loss) per share	For the Three Months Ended September 30, 2021 Numerator: Net loss $ (576,000) Denominator: Weighted average common shares outstanding, basic and diluted 9,809,264 Earnings/(loss) per share Basic and diluted $ (0.06)
Schedule of antidilutive securities excluded	For the Three Months Ended September 30, 2021 Options 150,000 Warrants 241,500 Total potentially dilutive shares 391,500

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	3 Months Ended
PROPERTY, PLANT AND EQUIPMENT (Tables)	Sep. 30, 2021
PROPERTY, PLANT AND EQUIPMENT
Schedule of property, plant and equipment	Property, plant and equipment consist of the following (in thousands): September 30, June 30, 2021 2021 Production equipment $ 307 $ 307 Leasehold improvements 202 202 Furniture and fixtures 45 45 Computer equipment 44 44 Other equipment 114 114 712 712 Accumulated depreciation (704) (691) Net property plant and equipment $ 8 $ 21
Schedule of estimated useful lives of the assets	NOTE 3 — PROPERTY, PLANT AND EQUIPMENT (continued) Depreciation of property, plant and equipment is calculated using the straight-line method over their estimated useful lives as follows: Useful Lives Leasehold improvements 5 years or remaining lease term Furniture and fixtures 5 years Production equipment 3 – 7 years Computer equipment 3 years Other equipment 3 – 7 years

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	3 Months Ended
GOODWILL AND INTANGIBLE ASSETS (Tables)	Sep. 30, 2021
GOODWILL AND INTANGIBLE ASSETS
Summary of intangible assets	The following table summarizes the Company’s intangible assets as of September 30, 2021 (in thousands): Amortization Gross Asset Accumulated Net Book Period Cost Amortization Value Customer relationships 11 years $ 970 $ 191 $ 779 Patents 20 years 70 8 62 Trademark 20 years 78 8 70 $ 1,118 $ 207 $ 911 The following table summarizes the Company’s intangible assets as of June 30, 2021 (in thousands): Amortization Gross Asset Accumulated Net Book Period Cost Amortization Value Customer relationships 11 years $ 970 $ 169 $ 801 Patents 20 years 70 7 63 Trademark 20 years 78 7 71 $ 1,118 $ 183 $ 935
Summary of estimated amortization expense related to intangible assets	Estimated amortization expense related to intangible assets subject to amortization at September 30,2021 in each of the five fiscal years subsequent to September 30, 2021, and thereafter is as follows (amounts in thousands): 2022 remaining $ 72 2023 96 2024 96 2025 96 2026 96 Thereafter 455 Total $ 911

ACCRUED EXPENSES (Tables)

ACCRUED EXPENSES (Tables)	3 Months Ended
ACCRUED EXPENSES (Tables)	Sep. 30, 2021
ACCRUED EXPENSES
Schedule of accrued expenses	Accrued expenses consist of the following (in thousands): September 30, June 30, 2021 2021 Employee compensation $ 228 $ 485 Others 174 135 Total $ 402 $ 620

DEBT (Tables)

DEBT (Tables)	3 Months Ended
DEBT (Tables)	Sep. 30, 2021
DEBT
Summary of long-term debt	Long-term debt at September 30, 2021 was as follows (in thousands): September 30, 2021 Balance Current Long Term PPP loan $ 698 $ 110 $ 588 Total $ 698 $ 110 $ 588 Long-term debt at June 30, 2021 was as follows (in thousands): June 30, 2021 Balance Current Long Term Caddy promissory note $ 1,059 $ 142 $ 917 PPP loan 698 73 625 Caddy indemnity promissory note 182 22 160 Total $ 1,939 $ 237 $ 1,702

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
COMMITMENTS AND CONTINGENCIES (Tables)	Sep. 30, 2021
COMMITMENTS AND CONTINGENCIES
Summary of future minimum lease payments	(in thousands) Total Operating leases Payments 2022 remaining $ 214 2023 293 2024 302 2025 174 Total future minimum lease payments $ 983

BUSINESS ACTIVITY AND SUMMARY_4

BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Deferred Offering Costs (Details) - USD ($)	Jul. 12, 2021	Sep. 30, 2021	Jul. 07, 2021	Jun. 30, 2021	Jul. 01, 2020
Subsidiary or Equity Method Investee [Line Items]
Share Price	$ 3.75
Warrants exercised for number of shares		139,611
Deferred offering costs				$ 1,100,000
Allowance for bad debts		$ 266,000		356,000
Accounts Receivable, after Allowance for Credit Loss, Current		898,000		$ 454,000	$ 809,000
Revenue recognized		$ 573,000
Initial public offering
Subsidiary or Equity Method Investee [Line Items]
Number of Shares Exchanged	2,350,000
Number of shares issued	4,830,000
Share Price	$ 3
Net proceeds	$ 12,583,900
Underwriting discounts, commissions and other expenses	1,906,100
Other assets to additional paid in capital	$ 1,340,000
Warrants exercised for number of shares	139,611
Share Exchange Agreement with PubCo
Subsidiary or Equity Method Investee [Line Items]
Number of Shares Exchanged			2,350,000
Notes payable			$ 1,272,000
Common Stock
Subsidiary or Equity Method Investee [Line Items]
Number of shares issued		2,350,000
Common Stock \| Initial public offering
Subsidiary or Equity Method Investee [Line Items]
Share Price	$ 3.75
Warrants exercised for number of shares	241,500

BUSINESS ACTIVITY AND SUMMARY_5

BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Deferred contract acquisition costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Total revenues	$ 3,474	$ 1,757
Equipment upon delivery \| Point in time
Disaggregation of Revenue [Line Items]
Total revenues	3,433	1,722
Installation \| Point in time
Disaggregation of Revenue [Line Items]
Total revenues	$ 41	$ 35

BUSINESS ACTIVITY AND SUMMARY_6

BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Advertising Costs (Details) - USD ($)	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Finite-Lived Intangible Assets [Line Items]
Advertising Expense	$ 1,000	$ 2,000
Impairment on goodwill	0	0
Impairment on intangible assets	0	$ 0
Federal or state income taxes	$ 0
Maximum
Finite-Lived Intangible Assets [Line Items]
Amortization Period	20 years
Minimum
Finite-Lived Intangible Assets [Line Items]
Amortization Period	11 years

BUSINESS ACTIVITY AND SUMMARY_7

BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - warranty liabilities (Details) - USD ($)	3 Months Ended	12 Months Ended
	Sep. 30, 2021	Jun. 30, 2021
Product Warranty Liability [Line Items]
Period of right to return defective products	3 years
Product warranty liability beginning of period	$ 29,000	$ 65,000
Accruals for warranties issued	7,000	29,000
Change in estimates		(37,000)
Settlements made	(3,000)	(28,000)
Product warranty liability end of the period	$ 33,000	$ 29,000
Maximum
Product Warranty Liability [Line Items]
Warranty period	3 years
Minimum
Product Warranty Liability [Line Items]
Warranty period	1 year

LOSS PER SHARE (Details)

LOSS PER SHARE (Details) - USD ($)	3 Months Ended
LOSS PER SHARE (Details) - USD ($)	Sep. 30, 2021	Sep. 30, 2020
Numerator:
Net loss	$ (576,000)	$ (389,000)
Denominator:
Weighted average common shares outstanding, basic	9,809,264
Weighted average common shares outstanding, diluted	9,809,264
Earnings/(loss) per share
Basic	$ (0.06)
Diluted	$ (0.06)

LOSS PER SHARE - Antidilutive s

LOSS PER SHARE - Antidilutive shares (Details)	3 Months Ended
LOSS PER SHARE - Antidilutive shares (Details)	Sep. 30, 2021shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares	391,500
Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares	150,000
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total potentially dilutive shares	241,500

PROPERTY, PLANT AND EQUIPMENT_2

PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 712	$ 712
Accumulated depreciation	(704)	(691)
Net property plant and equipment	8	21
Production equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	307	307
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	202	202
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	45	45
Computer equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	44	44
Other equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 114	$ 114

PROPERTY, PLANT AND EQUIPMENT -

PROPERTY, PLANT AND EQUIPMENT - Depreciation expense (Details) - USD ($)	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Property, Plant and Equipment [Line Items]
Depreciation	$ 13,000	$ 34,000
Cost of goods sold
Property, Plant and Equipment [Line Items]
Depreciation	9,000	30,000
General and administrative expense
Property, Plant and Equipment [Line Items]
Depreciation	$ 4,000	$ 4,000

PROPERTY, PLANT AND EQUIPMENT_3

PROPERTY, PLANT AND EQUIPMENT - Useful lives (Details)	3 Months Ended
PROPERTY, PLANT AND EQUIPMENT - Useful lives (Details)	Sep. 30, 2021
Leasehold improvements
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Production equipment \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	7 years
Production equipment \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Computer equipment
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Other equipment \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	7 years
Other equipment \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years

GOODWILL AND INTANGIBLE ASSET_2

GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2021	Jun. 30, 2021
Intangible assets
Gross Asset Cost	$ 1,118	$ 1,118
Accumulated Amortization	207	183
Net Book Value	$ 911	$ 935
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Amortization Period	11 years	11 years
Intangible assets
Gross Asset Cost	$ 970	$ 970
Accumulated Amortization	191	169
Net Book Value	$ 779	$ 801
Patents
Finite-Lived Intangible Assets [Line Items]
Amortization Period	20 years	20 years
Intangible assets
Gross Asset Cost	$ 70	$ 70
Accumulated Amortization	8	7
Net Book Value	$ 62	$ 63
Trademark
Finite-Lived Intangible Assets [Line Items]
Amortization Period	20 years	20 years
Intangible assets
Gross Asset Cost	$ 78	$ 78
Accumulated Amortization	8	7
Net Book Value	$ 70	$ 71

GOODWILL AND INTANGIBLE ASSET_3

GOODWILL AND INTANGIBLE ASSETS - Amortization expense (Details) - USD ($)	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 24,000	$ 24,000
General and administrative expense
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 24,000	$ 24,000

GOODWILL AND INTANGIBLE ASSET_4

GOODWILL AND INTANGIBLE ASSETS - Estimated amortization expense related to intangible assets subject to amortization (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2022 remaining	$ 72
2023	96
2024	96
2025	96
2026	96
Thereafter	455
Net Book Value	$ 911	$ 935

ACCRUED EXPENSES (Details)

ACCRUED EXPENSES (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021
ACCRUED EXPENSES
Employee compensation	$ 228	$ 485
Others	174	135
Total	$ 402	$ 620

DEBT - Line of Credit (Details)

DEBT - Line of Credit (Details) - USD ($)	1 Months Ended
DEBT - Line of Credit (Details) - USD ($)	Oct. 31, 2019	Sep. 30, 2021	Jul. 12, 2021	Jun. 30, 2021	Mar. 31, 2020
Debt Instrument [Line Items]
Term of debt	1 year
Number of shares for which warrants exercised		139,611
Initial public offering price			$ 3.75
Outstanding balance of line of credit				$ 590,000
Line of Credit [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 1,000,000
Interest rate	13.00%
Number of shares for which warrants exercised	94,723
Amount of proceeds from loan used to pay business combination	$ 400,000
Available borrowing capacity					$ 0
Outstanding balance of line of credit				$ 590,000

DEBT - Long term debt (Details)

DEBT - Long term debt (Details) - USD ($)	Sep. 30, 2021	Jun. 30, 2021
Debt Instrument [Line Items]
Balance	$ 698,000	$ 1,939,000
Current	110,000	237,000
Long Term	588,000	1,702,000
Closing promissory note
Debt Instrument [Line Items]
Balance		1,059,000
Current		142,000
Long Term		917,000
PPP loan
Debt Instrument [Line Items]
Balance	698,000	698,000
Current	110,000	73,000
Long Term	$ 588,000	625,000
Caddy indemnity promissory note
Debt Instrument [Line Items]
Balance		182,000
Current		22,000
Long Term		$ 160,000

DEBT - Caddy Promissory (Detail

DEBT - Caddy Promissory (Details)	3 Months Ended
DEBT - Caddy Promissory (Details)	Sep. 30, 2021
Debt Instrument [Line Items]
Spread on variable interest rate	3.75%
Closing promissory note \| Prime Rate [Member]
Debt Instrument [Line Items]
Spread on variable interest rate	2.75%
Caddy indemnity promissory note \| Prime Rate [Member]
Debt Instrument [Line Items]
Spread on variable interest rate	2.75%

DEBT - Paycheck Protection Prog

DEBT - Paycheck Protection Program (Details) - USD ($)	Mar. 13, 2021	May 06, 2020	May 31, 2021	Sep. 30, 2021	Jun. 30, 2021
Debt Instrument [Line Items]
Debt forgiven			$ 694,000
Outstanding balance				$ 698,000	$ 1,939,000
Notes payable current				110,000	237,000
PPP loan
Debt Instrument [Line Items]
Proceeds from loan	$ 698,000	$ 694,000
Outstanding balance				$ 698,000	698,000
Notes payable current					$ 110,000
Interest rate				1.00%

STOCKHOLDERS' MEMBERS' EQUITY_2

STOCKHOLDERS' MEMBERS' EQUITY AND STOCK BASED COMPENSATION (Details) - USD ($)	Jul. 12, 2021	Jul. 31, 2021	Sep. 30, 2021	Jun. 30, 2021
STOCKHOLDERS'/MEMBERS' EQUITY AND STOCK BASED COMPENSATION
Maximum stock based awards available for issuance			750,000
Share based payment award option outstanding			600,000
Number of warrants received to acquire common stock	241,500
Share Price	$ 3.75
Options granted		150,000
Exercise price, options granted		$ 3
Vesting period		1 year
Option expiration period		10 years
Aggregate grant date fair value		$ 244,200
Grant-date fair value			$ 1.63
Compensation expense			$ 56,000
Total unrecognized compensation				$ 188,000
Weighted average period				9 months
Warrants exercised for number of shares			139,611

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)	1 Months Ended
RELATED PARTY TRANSACTIONS (Details) - USD ($)	Jul. 31, 2021	Jun. 30, 2021
Related Party Transaction [Line Items]
Discretionary payment to the related parties for personal guarantees provided in conjunction with financing company debt	$ 50,000
MIT LLC
Related Party Transaction [Line Items]
Outstanding balance		$ 1,272,000

CUSTOMER AND VENDOR CONCENTRA_2

CUSTOMER AND VENDOR CONCENTRATIONS (Details) - USD ($)	3 Months Ended
CUSTOMER AND VENDOR CONCENTRATIONS (Details) - USD ($)	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2021	Jul. 01, 2020
Concentration Risk [Line Items]
Outstanding receivables	$ 898,000		$ 454,000	$ 809,000
Sales \| Customer concentration \| Customer one
Concentration Risk [Line Items]
Concentration risk percentage	27.00%	49.00%
Sales \| Customer concentration \| Customer two
Concentration Risk [Line Items]
Concentration risk percentage	13.00%	10.00%
Outstanding receivables \| Customer concentration
Concentration Risk [Line Items]
Outstanding receivables	$ 132,000		$ 0

CUSTOMER AND VENDOR CONCENTRA_3

CUSTOMER AND VENDOR CONCENTRATIONS (continued) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2021
Concentration Risk [Line Items]
Outstanding payables	$ 1,841		$ 1,911
Purchases \| Supplier concentration \| Vendor one
Concentration Risk [Line Items]
Concentration risk percentage	21.00%	25.00%
Purchases \| Supplier concentration \| Vendor two
Concentration Risk [Line Items]
Concentration risk percentage		12.00%

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	3 Months Ended
COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	Sep. 30, 2021	Sep. 30, 2020
Executive office lease
Operating Leased Assets [Line Items]
Rent expense	$ 70,000	$ 70,000

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES (Future minimum lease payments) (Details) $ in Thousands	Sep. 30, 2021USD ($)
Future minimum lease payments
2022 remaining	$ 214
2023	293
2024	302
2025	174
Total future minimum lease payments	$ 983