Document and Entity Information
Document and Entity Information Document - USD ($) | 9 Months Ended | ||
Mar. 31, 2018 | May 07, 2018 | Dec. 31, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | KOSS CORP | ||
Entity Central Index Key | 56,701 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Smaller Reporting Company | ||
Document Type | 10-Q | ||
Document Period End Date | Mar. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | Q3 | ||
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 | $ 5,950,766 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Net sales | $ 4,326,674 | $ 4,773,915 | $ 16,277,181 | $ 17,810,418 |
Cost of goods sold | 3,363,121 | 3,823,613 | 11,753,719 | 12,711,146 |
Gross profit | 963,553 | 950,302 | 4,523,462 | 5,099,272 |
Operating expenses: | ||||
Selling, general and administrative expenses | 1,772,560 | 1,965,698 | 5,220,570 | 5,728,860 |
Unauthorized transaction related (recoveries) costs, net | (1,265) | 39,663 | (17,445) | 73,759 |
Interest expense | 0 | 0 | 5,218 | 964 |
(Loss) before income tax provision | (807,742) | (1,055,059) | (684,881) | (704,311) |
Income tax provision | 5,126 | 62,523 | 3,048,208 | 188,948 |
Net (loss) | $ (812,868) | $ (1,117,582) | $ (3,733,089) | $ (893,259) |
Income (loss) per common share: | ||||
Basic | $ (0.11) | $ (0.15) | $ (0.51) | $ (0.12) |
Diluted | $ (0.11) | $ (0.15) | $ (0.51) | $ (0.12) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2018 | Jun. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 1,569,909 | $ 432,283 |
Accounts receivable, less allowance for doubtful accounts of $58,960 and $55,872, respectively | 3,008,988 | 3,931,541 |
Inventories | 6,356,456 | 8,345,343 |
Prepaid expenses and other current assets | 330,066 | 206,395 |
Income taxes receivable | 26,863 | 32,814 |
Total current assets | 11,292,282 | 12,948,376 |
Equipment and leasehold improvements, net | 1,273,145 | 1,408,091 |
Other assets: | ||
Deferred income taxes | 0 | 3,042,257 |
Cash surrender value of life insurance | 6,337,390 | 6,024,929 |
Total other assets | 6,337,390 | 9,067,186 |
Total assets | 18,902,817 | 23,423,653 |
Current liabilities: | ||
Accounts payable | 828,541 | 2,243,110 |
Accrued liabilities | 1,507,422 | 1,149,395 |
Total current liabilities | 2,335,963 | 3,392,505 |
Long-term liabilities: | ||
Deferred compensation | 2,319,636 | 2,294,418 |
Other liabilities | 159,371 | 164,418 |
Total long-term liabilities | 2,479,007 | 2,458,836 |
Total liabilities | 4,814,970 | 5,851,341 |
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 | 5,669,334 | 5,420,710 |
Retained earnings | 8,381,599 | 12,114,688 |
Total stockholders' equity | 14,087,847 | 17,572,312 |
Total liabilities and stockholders' equity | $ 18,902,817 | $ 23,423,653 |
CONDENSED CONSOLIDATED BALANCE4
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) | Mar. 31, 2018 | Jun. 30, 2017 |
Allowance for doubtful accounts | $ 58,960 | $ 55,872 |
Common stock, par value | $ 0.005 | $ 0.005 |
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 STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Operating activities: | ||
Net (loss) | $ (3,733,089) | $ (893,259) |
Adjustments to reconcile net (loss) to net cash provided by operating activities: | ||
Provision for (recovery of) doubtful accounts | 2,626 | (4,843) |
Loss on disposal of equipment and leasehold improvements | (343) | (6,230) |
Depreciation of equipment and leasehold improvements | 385,221 | 375,786 |
Stock-based compensation expense | 248,624 | 265,568 |
Deferred income taxes | 3,042,257 | 190,016 |
Change in cash surrender value of life insurance | (181,403) | (187,563) |
Change in deferred compensation accrual | 137,718 | 116,331 |
Deferred compensation paid | 112,500 | 112,500 |
Net changes in operating assets and liabilities (see note 10) | 1,729,505 | 761,846 |
Cash provided by operating activities | 1,519,302 | 517,612 |
Investing activities: | ||
Purchase of equipment and leasehold improvements | (250,618) | (365,081) |
Life insurance premiums paid | (131,058) | (133,767) |
Cash (used in) investing activities | (381,676) | (498,848) |
Financing activities: | ||
Net increase in cash and cash equivalents | 1,137,626 | 18,764 |
Cash and cash equivalents at beginning of period | 432,283 | 735,393 |
Cash and cash equivalents at end of period | $ 1,569,909 | $ 754,157 |
CONDENSED CONSOLIDATED FINANCIA
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Notes) | 9 Months Ended |
Mar. 31, 2018 | |
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, 2017 , 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 nine months ended March 31, 2018 , are not necessarily indicative of the operating results that may be experienced for the full fiscal year ending June 30, 2018 . 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, 2017 . |
NEW ACCOUNTING PRONOUNCEMENTS N
NEW ACCOUNTING PRONOUNCEMENTS NEW ACCOUNTING PRONOUNCEMENTS (Notes) | 9 Months Ended |
Mar. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09 (Topic 606), Revenue from Contracts with Customers. This new standard supersedes nearly all existing revenue recognition guidance and provides a five-step analysis to determine when and how revenue is recognized. The underlying principle is to recognize revenue when promised goods or services transfer to the customer. The amount of revenue recognized will reflect the consideration expected to be received for those goods or services. The new standard also requires additional disclosures about the nature, amount, timing and uncertainty of revenues and cash flows arising from customer contracts. The standard permits the use of either the full or modified retrospective transition method. The Company will adopt the new standard in the first quarter of fiscal 2019 and anticipates using the full retrospective method. The Company has begun the assessment of the new revenue standard through review of customer contracts, identification of what performance obligations exist, and calculation of the required adjustments. The preliminary results of our assessment indicate that the Company expects an immaterial impact on its consolidated financial statements and related disclosures. The Company is continuing its assessment and may identify other impacts. In February 2016, the FASB issued ASU 2016-02 (Topic 842), Leases. This new standard revises existing lease guidance and requires all leases to be recorded on a company's balance sheet as right-of-use assets and lease liabilities. The new guidance also requires additional disclosures about leases. The Company plans to early adopt the new standard in the first quarter of fiscal 2019. The Company has begun the assessment of the new lease standard through review of lease contracts and calculation of the required adjustments. The preliminary result of our assessment is that the Company expects an immaterial impact on its consolidated statements of operations and a material impact as a result of recording the right-of-use asset and corresponding lease liability on the Company's consolidated balance sheets. The Company is continuing its assessment and may identify other impacts. |
UNAUTHORIZED TRANSACTION RELATE
UNAUTHORIZED TRANSACTION RELATED COSTS AND RECOVERIES UNAUTHORIZED TRANSACTION RELATED COSTS AND RECOVERIES (Notes) | 9 Months Ended |
Mar. 31, 2018 | |
Unauthorized Transaction Related Costs and Recoveries [Abstract] | |
Unauthorized Transaction Related Costs and Recoveries [Text Block] | 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 and nine months ended March 31, 2017 , the costs incurred were for legal fees related to claims initiated against a third party (see Note 13 ). For the three and nine months ended March 31, 2018 and 2017 , the costs and recoveries were as follows: Three Months Ended Nine Months Ended March 31 March 31 2018 2017 2018 2017 Legal fees incurred $ — $ 40,000 $ — $ 77,500 Proceeds from asset forfeitures (1,265 ) (337 ) (17,445 ) (3,741 ) Unauthorized transaction related (recoveries) costs, net $ (1,265 ) $ 39,663 $ (17,445 ) $ 73,759 |
INVENTORIES (Notes)
INVENTORIES (Notes) | 9 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES The components of inventories were as follows: March 31, 2018 June 30, 2017 Raw materials $ 2,741,338 $ 2,900,499 Work-in process 5,644 — Finished goods 6,278,088 7,895,561 9,025,070 10,796,060 Allowance for obsolete inventory (2,668,614 ) (2,450,717 ) Total inventories $ 6,356,456 $ 8,345,343 |
INCOME TAXES (Notes)
INCOME TAXES (Notes) | 9 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company files income tax returns in the United States federal jurisdiction and in several state jurisdictions. The statute of limitations for the Company’s federal tax returns for tax years beginning July 1, 2014 or later are open. For states in which the Company files state income tax returns, the statute of limitations is generally open for tax years ended June 30, 2014 and forward. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (“the Tax Act”) was signed. The Tax Act significantly changed the income tax environment for US corporations, including the reduction of the US federal corporate tax rate from 35% to 21%. Accordingly, we remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21%. For the three and nine months ended March 31, 2018 , the Company recorded an income tax expense of $5,126 and $3,048,208 , respectively, compared to income tax expense of $62,523 and $188,948 for the three and nine months ended March 31, 2017 , respectively. The income tax expense for the nine months ended March 31, 2018 includes $713,826 for the write-down of deferred income taxes due to the change in federal statutory tax rate as a result of the passage of the Tax Act. There was no tax expense in the three months ended March 31, 2018 , related to the change in federal statutory tax rate. Income tax expense for the three and nine months ended March 31, 2018 , also includes $187,846 and $2,429,235 , respectively, related to the recording of a valuation allowance for all deferred tax assets. The valuation allowance was recorded due to uncertainty of the realizability of the deferred tax assets. The Company does not believe it has any unrecognized tax benefits as of March 31, 2018 , and as of June 30, 2017 . Any changes to the Company’s unrecognized tax benefits as of March 31, 2018 , if recognized, would impact the effective tax rate. |
CREDIT FACILITY (Notes)
CREDIT FACILITY (Notes) | 9 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Credit Facility | CREDIT FACILITY On May 12, 2010, the Company entered into a secured credit facility (“Credit Agreement”) with JPMorgan Chase Bank, N.A. (“Lender”). The 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 June 29, 2017, the Credit Agreement was amended to reduce the facility to $4,000,000 and to eliminate the financial covenants. On May 9, 2018, the Credit Agreement was amended to extend the expiration to July 31, 2019. 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 loan may be used only for general corporate purposes of the Company. 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 Company is currently in compliance with all covenants related to the Credit Agreement. As of March 31, 2018 , and June 30, 2017 , there were no outstanding borrowings on the facility. The Company incurs interest expense primarily related to its secured credit facility. Interest expense was $5,218 and $964 for the nine months ended March 31, 2018 and 2017 , respectively. There was no interest expense in the three months ended March 31, 2018 and 2017 . |
ACCRUED LIABILITIES (Notes)
ACCRUED LIABILITIES (Notes) | 9 Months Ended |
Mar. 31, 2018 | |
Accrued Liabilities [Abstract] | |
Accrued Liabilities [Text Block] | ACCRUED LIABILITIES Accrued liabilities were as follows: March 31, 2018 June 30, 2017 Cooperative advertising and promotion allowances $ 462,082 $ 415,050 Product warranty obligations 193,578 220,541 Customer credit balances 344,663 21,175 Current deferred compensation 150,000 150,000 Accrued returns 48,508 53,915 Employee benefits 60,272 54,074 Legal and professional fees 66,000 86,500 Sales commissions and bonuses 130,347 83,654 Other 51,972 64,486 Total accrued liabilities $ 1,507,422 $ 1,149,395 |
INCOME (LOSS) PER COMMON AND CO
INCOME (LOSS) PER COMMON AND COMMON STOCK EQUIVALENT SHARE (Notes) | 9 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share, Basic and Diluted [Abstract] | |
Income (Loss) Per Common and Common Stock Equivalent Share | LOSS PER COMMON AND COMMON STOCK EQUIVALENT SHARE Basic 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 periods ended March 31, 2018 and 2017 . When dilutive, stock options are included in income per share as share equivalents using the treasury stock method. For the periods ended March 31, 2018 and 2017 , 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 2,395,000 and 2,345,000 were excluded from the diluted weighted-average common shares outstanding for the periods ended March 31, 2018 and 2017 , respectively, as they would be anti-dilutive. |
STOCK OPTIONS (Notes)
STOCK OPTIONS (Notes) | 9 Months Ended |
Mar. 31, 2018 | |
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 and non-employee directors. In the nine months ended March 31, 2018 , options to purchase 490,000 shares were granted under the 2012 Omnibus Incentive Plan at a weighted average exercise price of $1.89 . In the nine months ended March 31, 2017 , options to purchase 485,000 shares were granted under the 2012 Omnibus Incentive Plan at a weighted average exercise price of $2.33 . Stock-based compensation expense during the three and nine months ended March 31, 2018 was $82,792 and $248,624 , respectively. Stock-based compensation expense during the three and nine months ended March 31, 2017 was $88,523 and $265,568 , respectively. |
ADDITIONAL CASH FLOW INFORMATIO
ADDITIONAL CASH FLOW INFORMATION (Notes) | 9 Months Ended |
Mar. 31, 2018 | |
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: Nine Months Ended March 31 2018 2017 Accounts receivable $ 919,927 $ 585,803 Inventories 1,988,887 641,211 Prepaid expenses and other current assets (123,671 ) (93,147 ) Income taxes receivable 5,951 529,378 Accounts payable (1,414,569 ) (551,606 ) Accrued liabilities 358,027 (338,137 ) Other liabilities (5,047 ) (11,656 ) Net change $ 1,729,505 $ 761,846 Net cash paid (refunded) during the period for: Income taxes $ 3,182 $ (523,342 ) Interest $ 5,218 $ 964 |
STOCKHOLDERS' EQUITY (Notes)
STOCKHOLDERS' EQUITY (Notes) | 9 Months Ended |
Mar. 31, 2018 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY The following table summarizes the changes in stockholders’ equity: Nine Months Ended March 31 2018 2017 Net (loss) $ (3,733,089 ) $ (893,259 ) Stock-based compensation expense 248,624 265,568 (Decrease) in stockholders' equity $ (3,484,465 ) $ (627,691 ) |
COMMITMENTS AND CONTINGENCIES C
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES (Notes) | 9 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | COMMITMENTS AND CONTINGENCIES The Company leases its facility in Milwaukee, Wisconsin from Koss Holdings, LLC, which is wholly-owned by the former Chairman. On January 5, 2017 , the lease was renewed for a period of five years, ending June 30, 2023 , and is being accounted for as an operating lease. The lease extension maintained the rent at a fixed rate of $380,000 per year. The Company is responsible for all property maintenance, insurance, taxes and other normal expenses related to ownership. |
LEGAL MATTERS (Notes)
LEGAL MATTERS (Notes) | 9 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters | LEGAL MATTERS As of March 31, 2018 , the Company is party to the following matter related to the unauthorized transactions described below: • On December 17, 2010, the Company filed an action against Park Bank in Circuit Court of Milwaukee County, Wisconsin alleging a claim of breach of the Uniform Fiduciaries Act relating to the unauthorized transactions, as previously reported. In 2015, Park Bank filed third party claims based on contribution and subrogation against Grant Thornton LLP and Michael Koss. The Court granted motions to dismiss the contribution claims against Grant Thornton LLP and Michael Koss, but determined that it was premature to decide the subrogation claims at this stage of the proceedings. On or around March 11, 2016, the Court entered an order granting Park Bank's motion for summary judgment that dismissed the case. On March 22, 2016, the Company filed a Notice of Appeal that appeals the order granting Park Bank's motion for summary judgment and the Court's denial of the motion to dismiss the subrogation claims. Park Bank also filed a cross–appeal that appeals the Court's order that granted the motions to dismiss the contribution claims against Grant Thornton LLP and Michael Koss. On December 12, 2017, the Court of Appeals issued its decision that affirmed the Circuit Court’s judgment dismissing the Company’s claim against Park Bank. The Company filed a Petition for Review of that decision before the Supreme Court of Wisconsin. On March 14, 2018, the Court granted the Petition. The case is currently pending before the Wisconsin Supreme Court. The ultimate resolution of this matter is not determinable unless otherwise noted. |
UNAUTHORIZED TRANSACTION RELA19
UNAUTHORIZED TRANSACTION RELATED COSTS AND RECOVERIES UNAUTHORIZED TRANSACTION RELATED COSTS AND RECOVERIES (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Unauthorized Transaction Related Costs and Recoveries [Abstract] | |
Unauthorized Transactions, Related Costs and Recoveries, net [Table Text Block] | For the three and nine months ended March 31, 2018 and 2017 , the costs and recoveries were as follows: Three Months Ended Nine Months Ended March 31 March 31 2018 2017 2018 2017 Legal fees incurred $ — $ 40,000 $ — $ 77,500 Proceeds from asset forfeitures (1,265 ) (337 ) (17,445 ) (3,741 ) Unauthorized transaction related (recoveries) costs, net $ (1,265 ) $ 39,663 $ (17,445 ) $ 73,759 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | The components of inventories were as follows: March 31, 2018 June 30, 2017 Raw materials $ 2,741,338 $ 2,900,499 Work-in process 5,644 — Finished goods 6,278,088 7,895,561 9,025,070 10,796,060 Allowance for obsolete inventory (2,668,614 ) (2,450,717 ) Total inventories $ 6,356,456 $ 8,345,343 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Accrued Liabilities [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued liabilities were as follows: March 31, 2018 June 30, 2017 Cooperative advertising and promotion allowances $ 462,082 $ 415,050 Product warranty obligations 193,578 220,541 Customer credit balances 344,663 21,175 Current deferred compensation 150,000 150,000 Accrued returns 48,508 53,915 Employee benefits 60,272 54,074 Legal and professional fees 66,000 86,500 Sales commissions and bonuses 130,347 83,654 Other 51,972 64,486 Total accrued liabilities $ 1,507,422 $ 1,149,395 |
ADDITIONAL CASH FLOW INFORMAT22
ADDITIONAL CASH FLOW INFORMATION (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
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: Nine Months Ended March 31 2018 2017 Accounts receivable $ 919,927 $ 585,803 Inventories 1,988,887 641,211 Prepaid expenses and other current assets (123,671 ) (93,147 ) Income taxes receivable 5,951 529,378 Accounts payable (1,414,569 ) (551,606 ) Accrued liabilities 358,027 (338,137 ) Other liabilities (5,047 ) (11,656 ) Net change $ 1,729,505 $ 761,846 Net cash paid (refunded) during the period for: Income taxes $ 3,182 $ (523,342 ) Interest $ 5,218 $ 964 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity | The following table summarizes the changes in stockholders’ equity: Nine Months Ended March 31 2018 2017 Net (loss) $ (3,733,089 ) $ (893,259 ) Stock-based compensation expense 248,624 265,568 (Decrease) in stockholders' equity $ (3,484,465 ) $ (627,691 ) |
UNAUTHORIZED TRANSACTION RELA24
UNAUTHORIZED TRANSACTION RELATED COSTS AND RECOVERIES UNAUTHORIZED TRANSACTION RELATED COSTS AND RECOVERIES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Unauthorized Transaction Related Costs and Recoveries [Abstract] | ||||
Legal fees incurred | $ 0 | $ 40,000 | $ 0 | $ 77,500 |
Proceeds from asset forfeitures | (1,265) | (337) | (17,445) | (3,741) |
Unauthorized transaction related costs (recoveries), net | $ (1,265) | $ 39,663 | $ (17,445) | $ 73,759 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Mar. 31, 2018 | Jun. 30, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,741,338 | $ 2,900,499 |
Work-in process | 5,644 | 0 |
Finished goods | 6,278,088 | 7,895,561 |
Gross inventory | 9,025,070 | 10,796,060 |
Allowance for obsolete inventory | (2,668,614) | (2,450,717) |
Total inventories | $ 6,356,456 | $ 8,345,343 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Jun. 30, 2017 | |
Income Tax Contingency [Line Items] | |||||
Income tax provision | $ 5,126 | $ 62,523 | $ 3,048,208 | $ 188,948 | |
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | 0 | 713,826 | |||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 187,846 | 2,429,235 | |||
Unrecognized tax benefits | 0 | 0 | $ 0 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 0 | $ 0 |
CREDIT FACILITY (Details)
CREDIT FACILITY (Details) - USD ($) | May 12, 2010 | Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | Jun. 30, 2017 | Jun. 29, 2017 |
Line of Credit Facility [Line Items] | |||||||
Revolving secured credit facility, maximum borrowing available | $ 8,000,000 | $ 4,000,000 | |||||
Line of credit sublimit | $ 2,000,000 | ||||||
Line of credit facility | $ 0 | $ 0 | $ 0 | ||||
Interest Expense, Debt | $ 0 | $ 0 | $ 5,218 | $ 964 | |||
Minimum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Unused capacity, commitment fee percentage | 0.30% | ||||||
Minimum [Member] | Prime Rate [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Interest rate, percentage spread, depending on Company's leverage ratio | 0.00% | ||||||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Interest rate, percentage spread, depending on Company's leverage ratio | 2.00% | ||||||
Maximum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Unused capacity, commitment fee percentage | 0.45% | ||||||
Maximum [Member] | Prime Rate [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Interest rate, percentage spread, depending on Company's leverage ratio | 0.75% | ||||||
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Interest rate, percentage spread, depending on Company's leverage ratio | 3.00% |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) | Mar. 31, 2018 | Jun. 30, 2017 |
Accrued Liabilities [Abstract] | ||
Cooperative advertising and promotion allowances | $ 462,082 | $ 415,050 |
Product warranty obligations | 193,578 | 220,541 |
Customer credit balances | 344,663 | 21,175 |
Current deferred compensation | 150,000 | 150,000 |
Accrued returns | 48,508 | 53,915 |
Employee benefits | 60,272 | 54,074 |
Legal and professional fees | 66,000 | 86,500 |
Sales commissions and bonuses | 130,347 | 83,654 |
Other | 51,972 | 64,486 |
Total accrued liabilities | $ 1,507,422 | $ 1,149,395 |
INCOME (LOSS) PER COMMON AND 29
INCOME (LOSS) PER COMMON AND COMMON STOCK EQUIVALENT SHARE (Details) - shares | 9 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
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 | 2,395,000 | 2,345,000 |
STOCK OPTIONS (Details)
STOCK OPTIONS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Granted (in shares) | 490,000 | 485,000 | ||
Weighted average exercise price of shares granted in period | $ 1.89 | $ 2.33 | ||
Stock-based compensation expense | $ 82,792 | $ 88,523 | $ 248,624 | $ 265,568 |
ADDITIONAL CASH FLOW INFORMAT31
ADDITIONAL CASH FLOW INFORMATION (Details) - USD ($) | 9 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | ||
Accounts receivable | $ 919,927 | $ 585,803 |
Inventories | 1,988,887 | 641,211 |
Prepaid expenses and other current assets | (123,671) | (93,147) |
Income taxes receivable | 5,951 | 529,378 |
Accounts payable | (1,414,569) | (551,606) |
Accrued liabilities | 358,027 | (338,137) |
Other liabilities | (5,047) | (11,656) |
Net change | (1,729,505) | (761,846) |
Net cash (refunded) paid during the period for: | ||
Income taxes | 3,182 | (523,342) |
Interest | $ 5,218 | $ 964 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Stockholders' Equity Attributable to Parent [Abstract] | ||||
Net (loss) | $ (812,868) | $ (1,117,582) | $ (3,733,089) | $ (893,259) |
Stock-based compensation expense | 248,624 | 265,568 | ||
(Decrease) in stockholders' equity | $ (3,484,465) | $ (627,691) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | 9 Months Ended |
Mar. 31, 2018USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating leases, annual lease commitment | $ 380,000 |