Koss (KOSS) 10-Q 1 Nov 13 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information Document (USD $)	3 Months Ended
	Sep. 30, 2013	Oct. 25, 2013	Dec. 31, 2012
Document and Entity Information [Abstract]	'	'	'
Entity Registrant Name	'KOSS CORP	'	'
Entity Central Index Key	'0000056701	'	'
Current Fiscal Year End Date	'--06-30	'	'
Entity Filer Category	'Smaller Reporting Company	'	'
Document Type	'10-Q	'	'
Document Period End Date	30-Sep-13	'	'
Document Fiscal Year Focus	'2014	'	'
Document Fiscal Period Focus	'Q1	'	'
Amendment Flag	'false	'	'
Entity Common Stock, Shares Outstanding	'	7,382,706	'
Entity Well-known Seasoned Issuer	'No	'	'
Entity Voluntary Filers	'No	'	'
Entity Current Reporting Status	'Yes	'	'
Entity Public Float	'	'	$12,824,625

CONDENSED_STATEMENTS_OF_INCOME

CONDENSED STATEMENTS OF INCOME (USD $)	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Net sales	$6,824,339	$8,914,862
Cost of goods sold	4,571,370	5,663,690
Gross profit	2,252,969	3,251,172
Operating expenses:	'	'
Selling, general and administrative expenses	2,825,805	3,018,751
Unauthorized transaction related recoveries, net	-708,716	-382,727
Total operating expenses	2,117,089	2,636,024
Income from operations	135,880	615,148
Other income (expense):	'	'
Interest income	0	10
Interest expense	-7,606	-29,309
Total other expense, net	-7,606	-29,299
Income before income tax provision	128,274	585,849
Income tax provision	48,872	219,696
Net income	$79,402	$366,153
Income per common share:	'	'
Basic (in dollars per share)	$0.01	$0.05
Diluted (in dollars per share)	$0.01	$0.05
Dividends declared per common share (in dollars per share)	$0.06	$0.06

CONDENSED_BALANCE_SHEETS

CONDENSED BALANCE SHEETS (USD $)	Sep. 30, 2013	Jun. 30, 2013
Current assets:	'	'
Cash and cash equivalents	$4,454,979	$859,636
Accounts receivable, less allowance for doubtful accounts of $61,322 and $43,405, respectively	3,410,343	12,185,162
Inventories	9,760,809	10,501,172
Prepaid expenses and other current assets	546,333	465,589
Deferred income taxes	900,668	1,171,453
Total current assets	19,073,132	25,183,012
Equipment and leasehold improvements, net	2,363,364	2,337,982
Other assets:	'	'
Product software development expenditures, net	2,308,752	2,673,291
Deferred income taxes	631,785	419,530
Cash surrender value of life insurance	4,936,599	4,612,842
Total other assets	7,877,136	7,705,663
Total assets	29,313,632	35,226,657
Current liabilities:	'	'
Accounts payable	1,759,734	2,685,748
Accrued liabilities	2,013,613	4,705,454
Dividends payable	442,962	442,962
Income taxes payable	697,434	2,732,524
Total current liabilities	4,913,743	10,566,688
Long-term liabilities:	'	'
Deferred compensation	2,292,276	2,375,550
Derivative liability	156,537	154,745
Other liabilities	740,000	740,000
Total long-term liabilities	3,188,813	3,270,295
Total liabilities	8,102,556	13,836,983
Stockholders' equity:	'	'
Common stock, $0.005 par value, authorized 20,000,000 shares; issued and outstanding 7,382,706 shares	36,914	36,914
Paid in capital	3,448,570	3,263,608
Retained earnings	17,725,592	18,089,152
Total stockholders' equity	21,211,076	21,389,674
Total liabilities and stockholders' equity	$29,313,632	$35,226,657

CONDENSED_BALANCE_SHEETS_PAREN

CONDENSED BALANCE SHEETS (PARENTHETICAL) (USD $)	Sep. 30, 2013	Jun. 30, 2013
Allowance for doubtful accounts	$61,322	$43,405
Common stock, par value	$0.01	$0.01
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	7,382,706	7,382,706
Common stock, shares outstanding	7,382,706	7,382,706

CONDENSED_STATEMENTS_OF_CASH_F

CONDENSED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Net income	$79,402	$366,153
Adjustments to reconcile net income to net cash provided by (used in) operating activities:	'	'
Provision for doubtful accounts	-100,060	2,629
Depreciation of equipment and leasehold improvements	209,819	214,984
Amortization of product software development expenditures	364,539	364,540
Stock-based compensation expense	172,530	148,502
Provision for deferred income taxes	70,962	219,695
Change in cash surrender value of life insurance	-81,741	-6,102
Deferred compensation	-81,482	57,749
Net changes in operating assets and liabilities (see note 12)	3,881,553	-2,405,838
Cash provided by (used in) operating activities	4,515,522	-1,037,688
Investing activities:	'	'
Life insurance premiums paid	-242,016	-257,356
Purchase of equipment and leasehold improvements	-235,201	-294,255
Product software development expenditures	0	-22,580
Cash used in investing activities	-477,217	-574,191
Financing activities:	'	'
Net proceeds from line of credit facility	0	2,200,000
Dividends paid to stockholders	-442,962	-442,962
Cash (used in) provided by financing activities	-442,962	1,757,038
Net increase in cash and cash equivalents	3,595,343	145,159
Cash and cash equivalents at beginning of period	859,636	50,027
Cash and cash equivalents at end of period	$4,454,979	$195,186

CONDENSED_FINANCIAL_STATEMENTS

CONDENSED FINANCIAL STATEMENTS (Notes)	3 Months Ended
	Sep. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Condensed Financial Statements	'
	CONDENSED FINANCIAL STATEMENTS
	The condensed balance sheet as of June 30, 2013 has been derived from audited financial statements.  The unaudited condensed financial statements presented herein are based on interim amounts.  Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been condensed or omitted. In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary to present fairly the financial position, results of operations and cash flows for all periods presented have been made.  The operating results for the three months ended September 30, 2013 are not necessarily indicative of the operating results that may be experienced for the full fiscal year ending June 30, 2014.
	These condensed financial statements should be read in conjunction with the financial statements and notes thereto included in the Registrant’s Annual Report on Form 10-K for the fiscal year ended June 30, 2013.

UNAUTHORIZED_TRANSACTION_RELAT

UNAUTHORIZED TRANSACTION RELATED RECOVERIES (Notes)	3 Months Ended
	Sep. 30, 2013
Unauthorized Transactions, Related Recoveries, Net [Abstract]	'
Unauthorized Transaction Related Recoveries	'
	UNAUTHORIZED TRANSACTION RELATED RECOVERIES
	In 2009, Koss Corporation (the "Company") learned of significant unauthorized transactions, details of which have been disclosed in depth in the Company's previous periodic reports filed with the SEC. The unauthorized transaction related recoveries, net line in the Condensed Statements of Income is comprised of legal defense costs, legal fees related to certain claims against third parties (see Note 14), and recoveries related to the unauthorized transactions which are summarized below. For the three months ended September 30, 2013 and 2012, these costs and recoveries were as follows:
		Three Months Ended
		30-Sep
		2013			2012
	Legal fees incurred	$	107,813		$	71,304
	Recoveries:
	Insurance proceeds	—			(13,108		)
	Proceeds from asset forfeitures	(816,529		)	(440,923		)
	Total recoveries	(816,529		)	(454,031		)
	Unauthorized transaction related recoveries, net	$	(708,716	)	$	(382,727	)

INVENTORIES_Notes

INVENTORIES (Notes)	3 Months Ended
	Sep. 30, 2013
Inventory Disclosure [Abstract]	'
Inventories	'
	INVENTORIES
	The components of inventories at September 30, 2013 and June 30, 2013, were as follows:
		September 30, 2013			June 30, 2013
	Raw materials	$	4,901,637		$	5,019,597
	Work-in process	69,680			—
	Finished goods	5,979,004			6,690,301
		10,950,321			11,709,898
	Allowance for obsolete inventory	(1,189,512		)	(1,208,726		)
	Total inventories	$	9,760,809		$	10,501,172

PRODUCT_SOFTWARE_DEVELOPMENT_E

PRODUCT SOFTWARE DEVELOPMENT EXPENDITURES (Notes)	3 Months Ended
	Sep. 30, 2013
Capitalized Computer Software, Net [Abstract]	'
Product Software Development Expenditures	'
	PRODUCT SOFTWARE DEVELOPMENT EXPENDITURES
	The Company follows the guidance of ASC 985-20 “Costs of Software to be Sold, Leased, or Marketed” when capitalizing software development costs associated with software embedded in or to be incorporated into its products.  The cost of purchased software technology is capitalized and stated at the lower of unamortized cost or expected net realizable value.  Software is subject to rapid technological obsolescence and future revenue estimates supporting the capitalized software cost can be negatively affected based upon competitive products, services and pricing.  Such adverse developments could reduce the estimated net realizable value of our product software development costs and could result in impairment or a shorter estimated life.  Such events would require us to take a charge in the period in which the event occurs or to increase the amortization expense in future periods and would have a negative effect on our results of operations. At a minimum, we review for impairment on a quarterly basis.  The Company launched a new product offering utilizing this software in the fourth quarter of fiscal year 2012 and began amortizing the related capitalized software costs. Amortization is being recorded over a three year period or a fixed amount per unit sold, whichever is greater. Amortization expense for the three months ended September 30, 2013 and 2012 was $364,539 and $364,540, respectively. Accumulated amortization as of September 30, 2013 totaled $2,065,725.

INCOME_TAXES_Notes

INCOME TAXES (Notes)	3 Months Ended
	Sep. 30, 2013
Income Tax Disclosure [Abstract]	'
Income Taxes	'
	INCOME TAXES
	The Company files income tax returns in the United States (Federal), Wisconsin (State) and various other state jurisdictions.  Tax years open to examination by tax authorities under the statute of limitations include fiscal years 2008 through 2013 for Federal and fiscal years 2008 through 2013 for most state jurisdictions.
	The Company’s unrecognized tax benefits, excluding interest and penalties, were $696,113 as of September 30, 2013 and as of June 30, 2013. All of the Company’s unrecognized tax benefits as of September 30, 2013, if recognized, would impact the effective tax rate. The Company recognizes interest related to unrecognized tax benefits in interest expense. During the current fiscal year, it is reasonably possible that federal and state tax audit resolutions could reduce unrecognized tax benefits and income tax expense by up to $550,000, either because the Company's tax positions are sustained on audit or settled, or the applicable statute of limitations closes.

CREDIT_FACILITY_Notes

CREDIT FACILITY (Notes)	3 Months Ended
	Sep. 30, 2013
Debt Disclosure [Abstract]	'
Credit Facility	'
	CREDIT FACILITY
	On May 12, 2010, the Company entered into a secured credit facility with JPMorgan Chase Bank, N.A. (“Lender”).  The Credit Agreement dated May 12, 2010 between the Company and the Lender (“Credit Agreement”) provides for an $8,000,000 revolving secured credit facility with interest rates either ranging from 0.0% to 0.75% over the Lender’s most recently publicly announced prime rate or 2.0% to 3.0% over LIBOR, depending on the Company’s leverage ratio.  The Company pays a fee of 0.3% to 0.45% for unused amounts committed in the credit facility.  On July 24, 2013, the Credit Agreement was amended to extend the expiration to July 31, 2015. In addition to the revolving loans, the Credit Agreement also provides that the Company may, from time to time, request the Lender to issue letters of credit for the benefit of the Company of up to a sublimit of $2,000,000 and subject to certain other limitations.  The loans may be used only for general corporate purposes of the Company.
	The Credit Agreement contains certain affirmative, negative and financial covenants customary for financings of this type.  The negative covenants include restrictions on other indebtedness, liens, fundamental changes, certain investments, asset sales, sale and leaseback transactions and transactions with affiliates, among other restrictions.  The financial covenants include a minimum current ratio, minimum tangible net worth and maximum leverage ratio requirements.  The Company and the Lender also entered into the Pledge and Security Agreement dated May 12, 2010 under which the Company granted the Lender a security interest in substantially all of the Company’s assets in connection with the Company’s obligations under the Credit Agreement. The balance on this facility was $0 as of September 30, 2013 and June 30, 2013.

INTEREST_EXPENSE_Notes

INTEREST EXPENSE (Notes)	3 Months Ended
	Sep. 30, 2013
Interest [Abstract]	'
Interest Expense	'
	INTEREST EXPENSE
	The Company incurs interest expense primarily related to its secured credit facility (see Note 6) and to its liabilities for its tax positions related to the unauthorized transactions. As the tax returns have been settled and statutes have closed, the accrued interest expense on certain items has been reversed. Interest expense detail was as follows for the three months ended September 30, 2013 and 2012, respectively:
		Three Months Ended
		30-Sep
		2013			2012
	Interest expense on secured credit facility	$	587		$	(17,369	)
	Interest expense for tax positions related to unauthorized transactions	(8,193		)	(11,940		)
	Interest expense	$	(7,606	)	$	(29,309	)

INCOME_PER_COMMON_AND_COMMON_S

INCOME PER COMMON AND COMMON STOCK EQUIVALENT SHARE (Notes)	3 Months Ended
	Sep. 30, 2013
Earnings Per Share, Basic and Diluted [Abstract]	'
Income Per Common and Common Stock Equivalent Share	'
	INCOME PER COMMON AND COMMON STOCK EQUIVALENT SHARE
	Basic income per share is computed based on the weighted-average number of common shares outstanding.  The weighted-average number of common shares outstanding was 7,382,706 for the quarters ended September 30, 2013 and 2012.  When dilutive, stock options are included in income per share as share equivalents using the treasury stock method.  For the periods ended September 30, 2013 and 2012, there were no common stock equivalents related to stock option grants that were included in the computation of the weighted-average number of shares outstanding for diluted income per share.  Shares issuable upon the exercise of outstanding options of 2,186,000 and 1,944,308 were excluded from the diluted weighted-average common shares outstanding for the periods ended September 30, 2013 and 2012, respectively, as they would be anti-dilutive.

DIVIDENDS_DECLARED_Notes

DIVIDENDS DECLARED (Notes)	3 Months Ended
	Sep. 30, 2013
Dividends, Cash [Abstract]	'
Dividends Declared	'
	DIVIDENDS DECLARED
	On August 6, 2013, the Company declared a quarterly cash dividend of $0.06 per share for the stockholders of record on September 30, 2013, to be paid October 15, 2013.  Such dividend payable has been recorded as of September 30, 2013.

STOCK_OPTIONS_Notes

STOCK OPTIONS (Notes)	3 Months Ended
	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Stock Options	'
	STOCK OPTIONS
	The Company recognizes stock-based compensation expense for options granted under both the 1990 Flexible Incentive Plan and the 2012 Omnibus Incentive Plan. The stock-based compensation relates to stock options granted to employees, non-employee directors and non-employee consultants. In the three months ended September 30, 2013, options to purchase 445,000 shares were granted under the 2012 Omnibus Incentive Plan at a weighted average exercise price of $5.64. In the three months ended September 30, 2012, options to purchase 430,000 shares were granted under the 2012 Omnibus Incentive Plan at a weighted average exercise price of $5.29. Stock-based compensation expense during the three months ended September 30, 2013 and 2012 was $172,530 and $148,502, respectively.

STOCK_PURCHASE_AGREEMENTS_Note

STOCK PURCHASE AGREEMENTS (Notes)	3 Months Ended
	Sep. 30, 2013
Stock Purchase Agreement Disclosure [Abstract]	'
Stock Purchase Agreements	'
	STOCK PURCHASE AGREEMENTS
	The Company has an agreement with its Chairman, John C. Koss, in the event of his death, at the request of the executor of his estate, to repurchase his Company common stock from his estate.  The Company does not have the right to require the estate to sell stock to the Company.  As such, this arrangement is accounted for as a written put option with the fair value of the put option recorded as a derivative liability.
	The fair value of the written put option at September 30, 2013 and June 30, 2013 was $156,537 and $154,745, respectively.  The repurchase price is 95% of the fair market value of the common stock on the date that notice to repurchase is provided to the Company.  The total number of shares to be repurchased will be sufficient to provide proceeds which are the lesser of $2,500,000 or the amount of estate taxes and administrative expenses incurred by the Chairman’s estate.  The Company may elect to pay the purchase price in cash or may elect to pay cash equal to 25% of the total amount due and to execute a promissory note for the balance, payable over four years, at the prime rate of interest.  The Company maintains a $1,150,000 life insurance policy to fund a substantial portion of this obligation.

ADDITIONAL_CASH_FLOW_INFORMATI

ADDITIONAL CASH FLOW INFORMATION (Notes)	3 Months Ended
	Sep. 30, 2013
Supplemental Cash Flow Elements [Abstract]	'
Additional Cash Flow Information	'
	ADDITIONAL CASH FLOW INFORMATION
	The net changes in cash as a result of changes in operating assets and liabilities consist of the following:
		Three Months Ended
		30-Sep
		2013			2012
	Accounts receivable	$	8,874,879		$	511,106
	Inventories	740,363			275,671
	Prepaid expenses and other current assets	(80,744		)	(643,646		)
	Income taxes payable	(2,035,090		)	—
	Accounts payable	(926,014		)	(2,208,481		)
	Accrued liabilities	(2,691,841		)	(340,488		)
	Net change	$	3,881,553		$	(2,405,838	)
	Net cash paid during the period for:
	Income taxes	$	2,013,000		$	6,674
	Interest	$	2,185		$	10,553

STOCKHOLDERS_EQUITY_Notes

STOCKHOLDERS' EQUITY (Notes)	3 Months Ended
	Sep. 30, 2013
Stockholders' Equity Attributable to Parent [Abstract]	'
Stockholders' Equity	'
	STOCKHOLDERS’ EQUITY
	The following table summarizes the changes in stockholders’ equity for the three months ended September 30, 2013 and 2012:
		Three Months Ended
		30-Sep
		2013			2012
	Net income	$	79,402		$	366,153
	Dividends declared	(442,962		)	(442,962		)
	Stock-based compensation expense	172,530			148,502
	Income tax benefit from stock-based compensation expense	12,432			—
	(Decrease) increase in stockholders’ equity	$	(178,598	)	$	71,693

LEGAL_MATTERS_Notes

LEGAL MATTERS (Notes)	3 Months Ended
	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Legal Matters	'
	LEGAL MATTERS
	As of September 30, 2013, the Company is party to the matters related to the unauthorized transactions described below:
	•	On February 18, 2010, the Company filed an action against American Express Company, American Express Travel Related Services Company, Inc., AMEX Card Services Company, Decision Science, and Pamela S. Hopkins in Superior Court of Maricopa County, Arizona, case no. CV2010-006631, alleging various claims of aiding and abetting breach of fiduciary duty, aiding and abetting fraud, conversion, and negligence relating to the unauthorized transactions.  American Express filed a Motion to Dismiss the claims that the Company filed, and the Court granted the Motion to Dismiss.  The Company filed a Motion for New Trial requesting that the Court reconsider its prior ruling that granted the Motion to Dismiss, and the Court denied the Motion for New Trial.  The Company appealed this decision, and the appellate court ruled in the Company's favor regarding the aiding and abetting claims and the conversion claim. As a result, the case is now proceeding in the Superior Court with respect to those claims.
	•	On June 24, 2010, the Company filed an action against its former independent auditor, Grant Thornton, LLP, and Ms. Sachdeva, in Circuit Court of Cook County, Illinois, alleging various claims of accounting malpractice, negligent misrepresentation, and fraud relating to the unauthorized transactions. In June 2013, the Company executed a settlement agreement that settled this lawsuit and as part of the settlement, the parties provided mutual releases that resolved all claims involved in the litigation between the Company and its Directors against Grant Thornton, LLP. Pursuant to the settlement, in July 2013, the Company received gross proceeds of $8,500,000, or $6,380,000 net of associated legal fees.
	•	On December 17, 2010, the Company filed an action against Park Bank in Circuit Court of Milwaukee County, Wisconsin alleging claims of negligence and breach of fiduciary duty relating to the unauthorized transactions. The case is proceeding in the Circuit Court.
	The ultimate resolution of these matters is not determinable unless otherwise noted.

UNAUTHORIZED_TRANSACTION_RELAT1

UNAUTHORIZED TRANSACTION RELATED RECOVERIES (Tables)	3 Months Ended
	Sep. 30, 2013
Unauthorized Transactions, Related Recoveries, Net [Abstract]	'
Unauthorized Transaction Related Recoveries	'
	For the three months ended September 30, 2013 and 2012, these costs and recoveries were as follows:
		Three Months Ended
		30-Sep
		2013			2012
	Legal fees incurred	$	107,813		$	71,304
	Recoveries:
	Insurance proceeds	—			(13,108		)
	Proceeds from asset forfeitures	(816,529		)	(440,923		)
	Total recoveries	(816,529		)	(454,031		)
	Unauthorized transaction related recoveries, net	$	(708,716	)	$	(382,727	)

INVENTORIES_Tables

INVENTORIES (Tables)	3 Months Ended
	Sep. 30, 2013
Inventory Disclosure [Abstract]	'
Inventories	'
	The components of inventories at September 30, 2013 and June 30, 2013, were as follows:
		September 30, 2013			June 30, 2013
	Raw materials	$	4,901,637		$	5,019,597
	Work-in process	69,680			—
	Finished goods	5,979,004			6,690,301
		10,950,321			11,709,898
	Allowance for obsolete inventory	(1,189,512		)	(1,208,726		)
	Total inventories	$	9,760,809		$	10,501,172

INTEREST_EXPENSE_Tables

INTEREST EXPENSE (Tables)	3 Months Ended
	Sep. 30, 2013
Interest Expense [Abstract]	'
Interest Expense	'
	Interest expense detail was as follows for the three months ended September 30, 2013 and 2012, respectively:
		Three Months Ended
		30-Sep
		2013			2012
	Interest expense on secured credit facility	$	587		$	(17,369	)
	Interest expense for tax positions related to unauthorized transactions	(8,193		)	(11,940		)
	Interest expense	$	(7,606	)	$	(29,309	)

ADDITIONAL_CASH_FLOW_INFORMATI1

ADDITIONAL CASH FLOW INFORMATION (Tables)	3 Months Ended
	Sep. 30, 2013
Supplemental Cash Flow Elements [Abstract]	'
Additional Cash Flow Information	'
	The net changes in cash as a result of changes in operating assets and liabilities consist of the following:
		Three Months Ended
		30-Sep
		2013			2012
	Accounts receivable	$	8,874,879		$	511,106
	Inventories	740,363			275,671
	Prepaid expenses and other current assets	(80,744		)	(643,646		)
	Income taxes payable	(2,035,090		)	—
	Accounts payable	(926,014		)	(2,208,481		)
	Accrued liabilities	(2,691,841		)	(340,488		)
	Net change	$	3,881,553		$	(2,405,838	)
	Net cash paid during the period for:
	Income taxes	$	2,013,000		$	6,674
	Interest	$	2,185		$	10,553

STOCKHOLDERS_EQUITY_Tables

STOCKHOLDERS' EQUITY (Tables)	3 Months Ended
	Sep. 30, 2013
Stockholders' Equity Attributable to Parent [Abstract]	'
Stockholders' Equity	'
	The following table summarizes the changes in stockholders’ equity for the three months ended September 30, 2013 and 2012:
		Three Months Ended
		30-Sep
		2013			2012
	Net income	$	79,402		$	366,153
	Dividends declared	(442,962		)	(442,962		)
	Stock-based compensation expense	172,530			148,502
	Income tax benefit from stock-based compensation expense	12,432			—
	(Decrease) increase in stockholders’ equity	$	(178,598	)	$	71,693

UNAUTHORIZED_TRANSACTION_RELAT2

UNAUTHORIZED TRANSACTION RELATED RECOVERIES (Details) (USD $)	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Unauthorized Transactions, Related Recoveries, Net [Abstract]	'	'
Legal fees incurred	$107,813	$71,304
Recoveries:	'	'
Insurance proceeds	0	-13,108
Proceeds from asset forfeitures	-816,529	-440,923
Total recoveries	-816,529	-454,031
Unauthorized transaction related recoveries, net	($708,716)	($382,727)

INVENTORIES_Details

INVENTORIES (Details) (USD $)	Sep. 30, 2013	Jun. 30, 2013
Inventory Disclosure [Abstract]	'	'
Raw materials	$4,901,637	$5,019,597
Work-in process	69,680	0
Finished goods	5,979,004	6,690,301
Gross inventory	10,950,321	11,709,898
Allowance for obsolete inventory	-1,189,512	-1,208,726
Total inventories	$9,760,809	$10,501,172

PRODUCT_SOFTWARE_DEVELOPMENT_E1

PRODUCT SOFTWARE DEVELOPMENT EXPENDITURES (Details) (USD $)	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Capitalized Computer Software, Net [Abstract]	'	'
Amortization period	'3 years	'
Amortization expense	$364,539	$364,540
Accumulated amortization	$2,065,725	'

INCOME_TAXES_Details

INCOME TAXES (Details) (USD $)	Sep. 30, 2013	Jun. 30, 2013
Income Tax Disclosure [Abstract]	'	'
Unrecognized tax benefits	$696,113	$696,113
Maximum reasonably possible reduction of unrecognized tax benefits and income tax expense, during the current fiscal year	$550,000	'

CREDIT_FACILITY_Details

CREDIT FACILITY (Details) (USD $)	Sep. 30, 2013	Jun. 30, 2013	12-May-10
			Rate
Debt Disclosure [Abstract]	'	'	'
Revolving credit maximum	'	'	$8,000,000
Percent over prime, depending on Company's leverage ratio, minimum	'	'	0.00%
Percent over prime, depending on Company's leverage ratio, maximum	'	'	0.75%
Percent over LIBOR, depending on Company's leverage ratio, minimum	'	'	2.00%
Percent over LIBOR, depending on Company's leverage ratio, maximum	'	'	3.00%
Unused capacity, commitment fee percentage, minimum	'	'	0.30%
Unused capacity, commitment fee percentage, maximum	'	'	0.45%
Letter of credit sublimit	'	'	2,000,000
Outstanding balance	$0	$0	'

INTEREST_EXPENSE_Details

INTEREST EXPENSE (Details) (USD $)	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Interest Expense [Abstract]	'	'
Interest expense on secured credit facility	$587	($17,369)
Interest expense for tax positions related to unauthorized transactions	-8,193	-11,940
Interest expense	($7,606)	($29,309)

INCOME_PER_COMMON_AND_COMMON_S1

INCOME PER COMMON AND COMMON STOCK EQUIVALENT SHARE (Details)	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Earnings Per Share, Basic and Diluted [Abstract]	'	'
Weighted average number of shares outstanding	7,382,706	7,382,706
Common stock equivalents related to stock option grants that were included in the computation of the weighted-average number of shares outstanding	0	0
Shares issuable upon the exercise of outstanding options, excluded from the diluted weighted-average common shares outstanding as they would be anti-dilutive	2,186,000	1,944,308

DIVIDENDS_DECLARED_Details

DIVIDENDS DECLARED (Details) (USD $)	0 Months Ended	3 Months Ended
	Aug. 06, 2013	Sep. 30, 2013	Sep. 30, 2012
Dividends Declared [Abstract]	'	'	'
Quarterly cash dividend declared	$0.06	$0.06	$0.06
Dividend declared but not yet paid	'	$0.06	'

STOCK_OPTIONS_Details

STOCK OPTIONS (Details) (USD $)	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'	'
Granted	445,000	430,000
Weighted average exercise price of shares granted in period	$5.64	$5.29
Stock-based compensation expense	$172,530	$148,502

STOCK_PURCHASE_AGREEMENTS_Deta

STOCK PURCHASE AGREEMENTS (Details) (USD $)	3 Months Ended
	Sep. 30, 2013	Jun. 30, 2013
	Rate
Stock Purchase Agreement Disclosure [Abstract]	'	'
Fair value of written put option	$156,537	$154,745
Repurchase price, percent of fair market value	95.00%	'
Maximum proceeds from shares to be repurchased	2,500,000	'
Minimum percent Company may elect to pay in cash upon exercise of put	25.00%	'
Years over which Company may execute a promissory note payable, for the balance, at the prime rate of interest	'4 years	'
Death benefit of life insurance policy Company maintains to fund a substantial portion of the liability	$1,150,000	'

ADDITIONAL_CASH_FLOW_INFORMATI2

ADDITIONAL CASH FLOW INFORMATION (Details) (USD $)	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Supplemental Cash Flow Elements [Abstract]	'	'
Accounts receivable	$8,874,879	$511,106
Inventories	740,363	275,671
Prepaid expenses and other current assets	-80,744	-643,646
Income taxes payable	-2,035,090	0
Accounts payable	-926,014	-2,208,481
Accrued liabilities	-2,691,841	-340,488
Net change	-3,881,553	2,405,838
Net cash paid during the period for:	'	'
Income taxes	2,013,000	6,674
Interest	$2,185	$10,553

STOCKHOLDERS_EQUITY_Details

STOCKHOLDERS' EQUITY (Details) (USD $)	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Stockholders' Equity Attributable to Parent [Abstract]	'	'
Net income	$79,402	$366,153
Dividends declared	-442,962	-442,962
Stock-based compensation expense	172,530	148,502
Income tax benefit from stock-based compensation expense	12,432	0
(Decrease) increase in stockholders' equity	($178,598)	$71,693

LEGAL_MATTERS_Details

LEGAL MATTERS (Details) (USD $)	1 Months Ended
	Jul. 31, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Gain contingency, gross proceeds from legal settlements	$8,500,000
Gain contingency, net proceeds from legal settlements	$6,380,000