Koss (KOSS) 10-Q 31 Oct 14 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information Document (USD $)	3 Months Ended
	Sep. 30, 2014	Oct. 27, 2014	Dec. 31, 2013
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-14	'	'
Document Fiscal Year Focus	'2015	'	'
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	'	'	$13,728,925

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Net sales	$5,469,486	$6,824,339
Cost of goods sold	3,626,769	4,512,694
Gross profit	1,842,717	2,311,645
Operating expenses:	'	'
Selling, general and administrative expenses	1,938,993	2,884,481
Unauthorized transaction related costs and (recoveries), net	52,492	-708,716
Total operating expenses	1,991,485	2,175,765
Income (loss) from operations	-148,768	135,880
Other expense:	'	'
Interest expense	4,333	7,606
Income (loss) before income tax provision (benefit)	-153,101	128,274
Income tax provision (benefit)	-58,103	48,872
Net income (loss)	($94,998)	$79,402
Income (loss) per common share:	'	'
Basic (in dollars per share)	($0.01)	$0.01
Diluted (in dollars per share)	($0.01)	$0.01
Dividends declared per common share (in dollars per share)	$0	$0.06

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2014	Jun. 30, 2014
Current assets:	'	'
Cash and cash equivalents	$125,404	$1,899,411
Accounts receivable, less allowance for doubtful accounts of $28,560 and $20,501, respectively	2,770,956	3,160,887
Inventories	7,178,995	7,054,932
Prepaid expenses and other current assets	267,570	148,200
Income taxes receivable	1,264,281	1,109,276
Deferred income taxes	2,414,152	2,576,023
Total current assets	14,021,358	15,948,729
Equipment and leasehold improvements, net	1,856,016	1,840,491
Other assets:	'	'
Deferred income taxes	1,688,298	1,623,329
Cash surrender value of life insurance	5,315,751	4,977,409
Total other assets	7,004,049	6,600,738
Total assets	22,881,423	24,389,958
Current liabilities:	'	'
Accounts payable	1,510,474	2,464,755
Accrued liabilities	1,975,376	3,853,473
Income taxes payable	175,000	175,000
Line of credit facility	1,300,000	0
Total current liabilities	4,960,850	6,493,228
Long-term liabilities:	'	'
Deferred compensation	2,320,826	2,320,091
Other liabilities	292,291	336,772
Total long-term liabilities	2,613,117	2,656,863
Total liabilities	7,573,967	9,150,091
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	4,158,829	3,996,242
Retained earnings	11,111,713	11,206,711
Total stockholders' equity	15,307,456	15,239,867
Total liabilities and stockholders' equity	$22,881,423	$24,389,958

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) (USD $)	Sep. 30, 2014	Jun. 30, 2014
Allowance for doubtful accounts	$28,560	$20,501
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_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Operating activities:	'	'
Net income (loss)	($94,998)	$79,402
Adjustments to reconcile net income (loss) to net cash provided by operating activities:	'	'
Provision for (recoveries of previously written off) doubtful accounts	11,023	-100,060
Loss on disposals of fixed assets	-3,359	0
Depreciation of equipment and leasehold improvements	161,653	209,819
Amortization of product software development expenditures	0	364,539
Stock-based compensation expense	162,587	172,530
Deferred income taxes	96,902	70,962
Change in cash surrender value of life insurance	-106,884	-81,741
Deferred compensation	735	-81,482
Net changes in operating assets and liabilities (see note 11)	-2,896,388	3,881,553
Cash provided by (used in) operating activities	-2,662,011	4,515,522
Investing activities:	'	'
Life insurance premiums paid	-231,458	-242,016
Purchase of equipment and leasehold improvements	-180,538	-235,201
Cash used in investing activities	-411,996	-477,217
Financing activities:	'	'
Net proceeds from line of credit facility	1,300,000	0
Dividends paid to stockholders	0	-442,962
Cash provided by (used in) financing activities	1,300,000	-442,962
Net increase (decrease) in cash and cash equivalents	-1,774,007	3,595,343
Cash and cash equivalents at beginning of period	1,899,411	859,636
Cash and cash equivalents at end of period	$125,404	$4,454,979

CONDENSED_CONSOLIDATED_FINANCI

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Notes)	3 Months Ended
	Sep. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Condensed Consolidated Financial Statements	'
	CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
	The condensed consolidated balance sheet of Koss Corporation (the "Company") as of June 30, 2014 has been derived from audited financial statements.  The unaudited condensed consolidated 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, 2014 are not necessarily indicative of the operating results that may be experienced for the full fiscal year ending June 30, 2015.
	In the three months ended December 31, 2013, the Company formed Koss U.K. Limited to comply with certain European Union (EU) requirements. The entity is non-operating and holds no assets.
	These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Registrant’s Annual Report on Form 10-K for the fiscal year ended June 30, 2014.

UNAUTHORIZED_TRANSACTION_RELAT

UNAUTHORIZED TRANSACTION RELATED COSTS AND RECOVERIES (Notes)	3 Months Ended
	Sep. 30, 2014
Unauthorized Transactions, Costs and Related Recoveries, Net [Abstract]	'
Unauthorized Transaction Related Costs and Recoveries	'
	UNAUTHORIZED TRANSACTION RELATED COSTS AND RECOVERIES
	In December 2009, the Company learned of significant unauthorized transactions as previously reported.  The Company has ongoing costs and recoveries associated with the unauthorized transactions. For the three months ended September 30, 2014 and 2013, the costs incurred were for legal fees related to claims initiated against third parties (see Note 13). The Company has received recoveries related to the unauthorized transactions, which are summarized below. The Company will continue to incur legal fees for the claims initiated against third parties. The Company expects to receive additional forfeiture related funds in the fiscal year ended June 30, 2015.  However, the remaining amounts to be received are not expected to be significant. For the three months ended September 30, 2014 and 2013, the costs and recoveries were as follows:
		Three Months Ended
		30-Sep
		2014		2013
	Legal fees incurred	$	52,492	$	107,813
	Proceeds from asset forfeitures	—		(816,529		)
	Unauthorized transaction related costs and (recoveries), net	$	52,492	$	(708,716	)

INVENTORIES_Notes

INVENTORIES (Notes)	3 Months Ended
	Sep. 30, 2014
Inventory Disclosure [Abstract]	'
Inventories	'
	INVENTORIES
	The components of inventories at September 30, 2014 and June 30, 2014 were as follows:
		September 30, 2014			June 30, 2014
	Raw materials	$	5,394,907		$	5,593,159
	Work-in process	6,841			—
	Finished goods	6,577,205			6,327,221
		11,978,953			11,920,380
	Allowance for obsolete inventory	(4,799,958		)	(4,865,448		)
	Total inventories	$	7,178,995		$	7,054,932

PRODUCT_SOFTWARE_DEVELOPMENT_E

PRODUCT SOFTWARE DEVELOPMENT EXPENDITURES (Notes)	3 Months Ended
	Sep. 30, 2014
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 in 2012 and began amortization of the related capitalized software. Amortization was being recorded over a three year period or a fixed amount per unit sold, whichever is greater. In the three months ended December 31, 2013, the Company determined that the capitalized software needed to be replaced by a new architecture under development. As a result, the remaining asset value of $2,308,752 was expensed during the three months ended December 31, 2013 (charged to the Condensed Consolidated Statements of Operations line item titled "Impairment of capitalized software, inventory and related items"). The Company continues to believe in the viability of this technology but has temporarily suspended its research and development effort until the base business is restored to more profitable levels. Software development costs expended to develop future Wi-Fi based products will be expensed as incurred and charged to research and development.
	Capitalized software amortization recorded in Cost of Goods Sold in the three months ended September 30, 2013 totaled $364,539.

INCOME_TAXES_Notes

INCOME TAXES (Notes)	3 Months Ended
	Sep. 30, 2014
Income Tax Disclosure [Abstract]	'
Income Taxes	'
	INCOME TAXES
	For the three months ended September 30, 2014, the company recorded an income tax benefit of $58,103, compared to an income tax expense of $48,872 for the three months ended September 30, 2013. The decrease in the company's tax expense for the three months ended September 30, 2014 relative to the prior year resulted from pre-tax book losses. The Company files income tax returns in the United States federal jurisdiction and in several state jurisdictions.  The Company’s federal tax returns through tax year June 30, 2010 are settled and the income tax returns for tax years beginning July 1, 2010 are open.  For states in which the Company files state income tax returns, the statue of limitations is generally open for tax years ended June 30, 2010 and forward.  The Company's Federal return for the fiscal year ended June 30, 2013 is currently under examination.
	The Company’s unrecognized tax benefits, excluding interest and penalties, were $175,000 as of September 30, 2014 and as of June 30, 2014. All of the Company’s unrecognized tax benefits as of September 30, 2014, if recognized, would impact the effective tax rate.

CREDIT_FACILITY_Notes

CREDIT FACILITY (Notes)	3 Months Ended
	Sep. 30, 2014
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”) provided 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. On July 23, 2014 the Credit Agreement was amended to reduce the facility to $5,000,000 and to amend certain financial covenants. 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 minimum EBITDA and minimum tangible net worth 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 $1,300,000 as of September 30, 2014 and $0 as of June 30, 2014.

INTEREST_EXPENSE_Notes

INTEREST EXPENSE (Notes)	3 Months Ended
	Sep. 30, 2014
Interest Expense [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 statute of limitations have expired, the accrued interest expense on certain items has been reversed. Interest expense detail was as follows for the three months ended September 30, 2014 and 2013, respectively:
		Three Months Ended
		30-Sep
		2014			2013
	Interest (expense) benefit on secured credit facility	$	(4,333	)	$	587
	Interest expense for tax positions related to unauthorized transactions	—			(8,193		)
	Interest expense	$	(4,333	)	$	(7,606	)

INCOME_LOSS_PER_COMMON_AND_COM

INCOME (LOSS) PER COMMON AND COMMON STOCK EQUIVALENT SHARE (Notes)	3 Months Ended
	Sep. 30, 2014
Earnings Per Share, Basic and Diluted [Abstract]	'
Income (Loss) Per Common and Common Stock Equivalent Share	'
	INCOME (LOSS) PER COMMON AND COMMON STOCK EQUIVALENT SHARE
	Basic income (loss) 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, 2014 and 2013.  When dilutive, stock options are included in income (loss) per share as share equivalents using the treasury stock method.  For the periods ended September 30, 2014 and 2013, 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 (loss) per share.  Shares issuable upon the exercise of outstanding options of 2,411,000 and 2,186,000 were excluded from the diluted weighted-average common shares outstanding for the periods ended September 30, 2014 and 2013, respectively, as they would be anti-dilutive.

STOCK_OPTIONS_Notes

STOCK OPTIONS (Notes)	3 Months Ended
	Sep. 30, 2014
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, 2014, options to purchase 445,000 shares were granted under the 2012 Omnibus Incentive Plan at a weighted average exercise price of $3.19. 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. Stock-based compensation expense during the three months ended September 30, 2014 and 2013 was $162,587 and $172,530, respectively.

STOCK_PURCHASE_AGREEMENTS_Note

STOCK PURCHASE AGREEMENTS (Notes)	3 Months Ended
	Sep. 30, 2014
Derivative Instruments and Hedging Activities 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.
	As of September 30, 2014, John C. Koss did not hold a material amount of Company stock. As such, there is no exposure that the executor of John C. Koss' estate may require the Company to repurchase a material amount of stock in the event of his death. The fair value of the written put option was $0 at September 30, 2014 and at June 30, 2014.  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, 2014
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
		2014			2013
	Accounts receivable	$	378,909		$	8,874,879
	Inventories	(124,063		)	740,363
	Income taxes receivable	(155,005		)	—
	Prepaid expenses and other current assets	(119,370		)	(80,744		)
	Income taxes payable	—			(2,035,090		)
	Accounts payable	(954,281		)	(926,014		)
	Accrued liabilities	(1,878,097		)	(2,691,841		)
	Other liabilities	(44,481		)	—
	Net change	$	(2,896,388	)	$	3,881,553
	Net cash paid during the period for:
	Income taxes	$	10,510		$	2,013,000
	Interest	$	1,011		$	2,185

STOCKHOLDERS_EQUITY_Notes

STOCKHOLDERS' EQUITY (Notes)	3 Months Ended
	Sep. 30, 2014
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, 2014 and 2013:
		Three Months Ended
		30-Sep
		2014			2013
	Net income (loss)	$	(94,998	)	$	79,402
	Dividends declared	—			(442,962		)
	Stock-based compensation expense	162,587			172,530
	Income tax benefit from dividends paid to employee stock ownership plan	—			12,432
	Increase (decrease) in stockholders' equity	$	67,589		$	(178,598	)

LEGAL_MATTERS_Notes

LEGAL MATTERS (Notes)	3 Months Ended
	Sep. 30, 2014
Commitments and Contingencies Disclosure [Abstract]	'
Legal Matters	'
	LEGAL MATTERS
	As of September 30, 2014, the Company is party to the matters related to the unauthorized transactions and the termination of a vendor contract 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. The claims alleged include aiding and abetting breach of fiduciary duty, aiding and abetting fraud, and conversion relating to the unauthorized transactions.  The case is proceeding in the Superior Court with respect to those claims.
	•	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 Company voluntarily dismissed the negligence claim and the case is proceeding in the Circuit Court.
	•	On March 6, 2014, the Company filed an action against Red Fusion Studios, Inc. ("Red Fusion") in Circuit Court of Milwaukee County, Wisconsin, Case No. 14CV001885, seeking the return of the Company's property and damages following the termination of the agreement that the Company had with Red Fusion for the development of the Company's Striva Technology. Red Fusion filed counterclaims relating to fees that Red Fusion alleges it is owed as a result of the termination. 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 COSTS AND RECOVERIES (Tables)	3 Months Ended
	Sep. 30, 2014
Unauthorized Transactions, Costs and Related Recoveries, Net [Abstract]	'
Unauthorized Transaction Related Costs and Recoveries	'
	For the three months ended September 30, 2014 and 2013, the costs and recoveries were as follows:
		Three Months Ended
		30-Sep
		2014		2013
	Legal fees incurred	$	52,492	$	107,813
	Proceeds from asset forfeitures	—		(816,529		)
	Unauthorized transaction related costs and (recoveries), net	$	52,492	$	(708,716	)

INVENTORIES_Tables

INVENTORIES (Tables)	3 Months Ended
	Sep. 30, 2014
Inventory Disclosure [Abstract]	'
Inventories	'
	The components of inventories at September 30, 2014 and June 30, 2014 were as follows:
		September 30, 2014			June 30, 2014
	Raw materials	$	5,394,907		$	5,593,159
	Work-in process	6,841			—
	Finished goods	6,577,205			6,327,221
		11,978,953			11,920,380
	Allowance for obsolete inventory	(4,799,958		)	(4,865,448		)
	Total inventories	$	7,178,995		$	7,054,932

INTEREST_EXPENSE_Tables

INTEREST EXPENSE (Tables)	3 Months Ended
	Sep. 30, 2014
Interest Expense [Abstract]	'
Interest Expense	'
	Interest expense detail was as follows for the three months ended September 30, 2014 and 2013, respectively:
		Three Months Ended
		30-Sep
		2014			2013
	Interest (expense) benefit on secured credit facility	$	(4,333	)	$	587
	Interest expense for tax positions related to unauthorized transactions	—			(8,193		)
	Interest expense	$	(4,333	)	$	(7,606	)

ADDITIONAL_CASH_FLOW_INFORMATI1

ADDITIONAL CASH FLOW INFORMATION (Tables)	3 Months Ended
	Sep. 30, 2014
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
		2014			2013
	Accounts receivable	$	378,909		$	8,874,879
	Inventories	(124,063		)	740,363
	Income taxes receivable	(155,005		)	—
	Prepaid expenses and other current assets	(119,370		)	(80,744		)
	Income taxes payable	—			(2,035,090		)
	Accounts payable	(954,281		)	(926,014		)
	Accrued liabilities	(1,878,097		)	(2,691,841		)
	Other liabilities	(44,481		)	—
	Net change	$	(2,896,388	)	$	3,881,553
	Net cash paid during the period for:
	Income taxes	$	10,510		$	2,013,000
	Interest	$	1,011		$	2,185

STOCKHOLDERS_EQUITY_Tables

STOCKHOLDERS' EQUITY (Tables)	3 Months Ended
	Sep. 30, 2014
Stockholders' Equity Attributable to Parent [Abstract]	'
Stockholders' Equity	'
	The following table summarizes the changes in stockholders’ equity for the three months ended September 30, 2014 and 2013:
		Three Months Ended
		30-Sep
		2014			2013
	Net income (loss)	$	(94,998	)	$	79,402
	Dividends declared	—			(442,962		)
	Stock-based compensation expense	162,587			172,530
	Income tax benefit from dividends paid to employee stock ownership plan	—			12,432
	Increase (decrease) in stockholders' equity	$	67,589		$	(178,598	)

UNAUTHORIZED_TRANSACTION_RELAT2

UNAUTHORIZED TRANSACTION RELATED COSTS AND RECOVERIES (Details) (USD $)	3 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Unauthorized Transactions, Costs and Related Recoveries, Net [Abstract]	'	'
Legal fees incurred	$52,492	$107,813
Proceeds from asset forfeitures	0	-816,529
Unauthorized transaction related costs and (recoveries), net	$52,492	($708,716)

INVENTORIES_Details

INVENTORIES (Details) (USD $)	Sep. 30, 2014	Jun. 30, 2014
Inventory Disclosure [Abstract]	'	'
Raw materials	$5,394,907	$5,593,159
Work-in process	6,841	0
Finished goods	6,577,205	6,327,221
Gross inventory	11,978,953	11,920,380
Allowance for obsolete inventory	-4,799,958	-4,865,448
Total inventories	$7,178,995	$7,054,932

PRODUCT_SOFTWARE_DEVELOPMENT_E1

PRODUCT SOFTWARE DEVELOPMENT EXPENDITURES (Details) (USD $)	3 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Capitalized Computer Software, Net [Abstract]	'	'
Remaining 9/30/13 asset value charged to Statement of Operations line item titled Impairment of capitalized software, inventory and related items	'	$2,308,752
Capitalized software amortization recorded in Cost of Good Sold in the three months ended September 30, 2013	$0	$364,539

INCOME_TAXES_Details

INCOME TAXES (Details) (USD $)	3 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Jun. 30, 2014
Income Tax Disclosure [Abstract]	'	'	'
Income tax provision (benefit)	($58,103)	$48,872	'
Unrecognized tax benefits	175,000	'	175,000
Amount of the Companybs unrecognized tax benefits that if recognized, would impact the effective tax rate	$175,000	'	'

CREDIT_FACILITY_Details

CREDIT FACILITY (Details) (USD $)	Sep. 30, 2014	Jul. 23, 2014	Jun. 30, 2014	12-May-10	12-May-10	12-May-10	12-May-10	12-May-10	12-May-10	12-May-10
					Minimum [Member]	Minimum [Member]	Minimum [Member]	Maximum [Member]	Maximum [Member]	Maximum [Member]
					Rate	Prime Rate [Member]	London Interbank Offered Rate (LIBOR) [Member]	Rate	Prime Rate [Member]	London Interbank Offered Rate (LIBOR) [Member]
						Rate	Rate		Rate	Rate
Line of Credit Facility [Line Items]	'	'	'	'	'	'	'	'	'	'
Revolving secured credit facility, maximum borrowing available	'	$5,000,000	'	$8,000,000	'	'	'	'	'	'
Interest rate, percentage spread, depending on Company's leverage ratio	'	'	'	'	'	0.00%	2.00%	'	0.75%	3.00%
Unused capacity, commitment fee percentage	'	'	'	'	0.30%	'	'	0.45%	'	'
Line of credit sublimit	'	'	'	2,000,000	'	'	'	'	'	'
Line of credit outstanding balance	$1,300,000	'	$0	'	'	'	'	'	'	'

INTEREST_EXPENSE_Details

INTEREST EXPENSE (Details) (USD $)	3 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Interest Expense [Abstract]	'	'
Interest (expense) benefit on secured credit facility	($4,333)	$587
Interest expense for tax positions related to unauthorized transactions	0	-8,193
Interest expense	($4,333)	($7,606)

INCOME_LOSS_PER_COMMON_AND_COM1

INCOME (LOSS) PER COMMON AND COMMON STOCK EQUIVALENT SHARE (Details)	3 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
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	2,411,000	2,186,000

STOCK_OPTIONS_Details

STOCK OPTIONS (Details) (USD $)	3 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'	'
Granted (in shares)	445,000	445,000
Weighted average exercise price of shares granted in period	$3.19	$5.64
Stock-based compensation expense	$162,587	$172,530

STOCK_PURCHASE_AGREEMENTS_Deta

STOCK PURCHASE AGREEMENTS (Details) (USD $)	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2014	Jun. 30, 2014
		Rate
Derivative Instruments and Hedging Activities Disclosure [Abstract]	'	'	'
Fair value of written put option	'	$0	$0
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, 2014	Sep. 30, 2013
Supplemental Cash Flow Elements [Abstract]	'	'
Accounts receivable	$378,909	$8,874,879
Inventories	-124,063	740,363
Income taxes receivable	155,005	0
Prepaid expenses and other current assets	-119,370	-80,744
Income taxes payable	0	-2,035,090
Accounts payable	-954,281	-926,014
Accrued liabilities	-1,878,097	-2,691,841
Other liabilities	-44,481	0
Net change	2,896,388	-3,881,553
Net cash paid during the period for:	'	'
Income taxes	10,510	2,013,000
Interest	$1,011	$2,185

STOCKHOLDERS_EQUITY_Details

STOCKHOLDERS' EQUITY (Details) (USD $)	3 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Stockholders' Equity Attributable to Parent [Abstract]	'	'
Net income (loss)	($94,998)	$79,402
Dividends declared	0	-442,962
Stock-based compensation expense	162,587	172,530
Income tax benefit from dividends paid to employee stock ownership plan	0	12,432
Increase (decrease) in stockholders' equity	$67,589	($178,598)