Koss (KOSS) 10-Q 4 Feb 22 2022 Q2 Quarterly report Financial data

Document Information Statement

Document Information Statement - shares	6 Months Ended
	Dec. 31, 2021	Jan. 31, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 31, 2021
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--06-30
Document Transition Report	false
Entity File Number	0-3295
Entity Registrant Name	KOSS CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	4129 North Port Washington Avenue
Entity Address, City or Town	Milwaukee
Entity Address, State or Province	WI
Entity Tax Identification Number	39-1168275
Entity Address, Postal Zip Code	53212
City Area Code	414
Local Phone Number	964-5000
Title of 12(b) Security	Common Stock, par value $0.005 per share
Trading Symbol	KOSS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		9,147,795
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000056701
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Dec. 31, 2021	Jun. 30, 2021
Current assets:
Cash and cash equivalents	$ 7,788,804	$ 6,950,215
Accounts receivable, less allowance for doubtful accounts of $5,736 and $41,499, respectively	1,458,066	2,240,785
Life insurance receivable	2,007,769
Inventories, net	7,746,449	5,901,512
Prepaid expenses and other current assets	470,561	456,004
Total current assets	19,471,649	15,548,516
Equipment and leasehold improvements, net	1,195,240	1,281,180
Other assets:
Operating lease right-of-use assets	2,162,513	2,305,455
Cash surrender value of life insurance	5,701,844	7,188,994
Total other assets	7,864,357	9,494,449
Total assets	28,531,246	26,324,145
Current liabilities:
Accounts payable	866,195	398,433
Accrued liabilities	751,643	665,567
Deferred revenue	606,794	694,632
Operating lease liability	295,144	288,949
Income taxes payable	6,605	4,543
Total current liabilities	2,526,381	2,052,124
Long-term liabilities:
Deferred compensation	2,264,909	2,491,482
Deferred revenue	164,745	188,932
Operating lease liability	1,867,369	2,016,506
Total long-term liabilities	4,297,023	4,696,920
Total liabilities	6,823,404	6,749,044
Stockholders' equity:
Common stock, $0.005 par value, authorized 20,000,000 shares; issued and outstanding 9,137,795 and 8,608,706, respectively	45,739	43,044
Paid in capital	12,452,554	10,802,118
Retained earnings	9,209,549	8,729,939
Total stockholders' equity	21,707,842	19,575,101
Total liabilities and stockholders' equity	$ 28,531,246	$ 26,324,145

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parentheticals) - USD ($)	Dec. 31, 2021	Jun. 30, 2021
Condensed Consolidated Balance Sheets [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 5,736	$ 41,499
Common stock, par value (in dollars per share)	$ 0.005	$ 0.005
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares issued (in shares)	9,147,795	8,608,706
Common stock, shares outstanding (in shares)	9,147,795	8,608,706

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Condensed Consolidated Statements of Income [Abstract]
Net sales	$ 4,415,886	$ 4,929,789	$ 8,780,953	$ 10,138,084
Cost of goods sold	2,866,193	3,311,892	5,649,423	6,883,960
Gross profit	1,549,693	1,617,897	3,131,530	3,254,124
Selling, general and administrative expenses	1,229,294	1,615,824	3,010,091	3,121,595
Income from operations	320,399	2,073	121,439	132,529
Other income	255,975	506,700	355,975	506,700
Interest income	3,626	2,660	4,258	609
Income before income tax provision	580,000	511,433	481,672	639,838
Income tax provision	1,031	2,543	2,062	4,019
Net income	$ 578,969	$ 508,890	$ 479,610	$ 635,819
Income per common share:
Basic (in dollars per share)	$ 0.06	$ 0.07	$ 0.05	$ 0.09
Diluted (in dollars per share)	$ 0.06	$ 0.07	$ 0.05	$ 0.09
Weighted-average number of shares:
Basic (in shares)	9,144,099	7,405,758	8,994,023	7,405,295
Diluted (in shares)	10,064,713	7,453,450	10,062,915	7,424,239

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Operating activities:
Net income	$ 479,610	$ 635,819
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
(Recovery of) provision for doubtful accounts of accounts receivable	(35,764)	8,108
Depreciation of equipment and leasehold improvements	161,095	153,559
Stock-based compensation expense	262,785	309,756
Change in cash surrender value of life insurance	(168,756)	(158,521)
Provision for deferred compensation	167,560	58,000
Deferred compensation paid	(71,250)	(75,000)
Deferred compensation relieved	(472,883)
Other income - SBA loan forgiveness		(506,700)
Other income - Net gain from life insurance benefits	(255,975)
Net changes in operating assets and liabilities:
Accounts receivable	818,483	(234,090)
Inventories	(1,844,937)	(264,220)
Prepaid expenses and other current assets	(14,557)	(135,479)
Income taxes receivable		4,019
Income taxes payable	2,062
Accounts payable	467,762	282,535
Accrued liabilities	236,076	474,481
Deferred revenue	(112,025)	232,413
Net cash (used in) provided by operating activities	(380,714)	784,680
Investing activities:
Purchase of equipment and leasehold improvements	(75,155)	(374,558)
Life insurance premiums paid	(95,888)	(103,730)
Net cash (used in) investing activities	(171,043)	(478,288)
Financing activities:
Proceeds from exercise of stock options	1,390,346	88,918
Net cash provided by financing activities	1,390,346	88,918
Net increase in cash and cash equivalents	838,589	395,310
Cash and cash equivalents at beginning of period	6,950,215	3,999,409
Cash and cash equivalents at end of period	7,788,804	$ 4,394,719
Non-cash financing and investing activity:
Reclassification of cash surrender value of life insurance to life insurance receivable	$ 1,751,794

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity - USD ($)	Common Stock [Member]	Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Jun. 30, 2020	7,404,831
Balance at Jun. 30, 2020	$ 37,024	$ 6,882,729	$ 8,236,345	$ 15,156,098
Net income			635,819	635,819
Stock-based compensation expense		309,756		309,756
Stock option exercises (in shares)	42,658
Stock option exercises	$ 213	88,705		88,918
Balance at Dec. 31, 2020	$ 37,237	7,281,190	8,872,164	16,190,591
Balance (in shares) at Dec. 31, 2020	7,447,489
Balance (in shares) at Sep. 30, 2020	7,404,831
Balance at Sep. 30, 2020	$ 37,024	7,035,723	8,363,274	15,436,021
Net income			508,890	508,890
Stock-based compensation expense		156,762		156,762
Stock option exercises (in shares)	42,658
Stock option exercises	$ 213	88,705		88,918
Balance at Dec. 31, 2020	$ 37,237	7,281,190	8,872,164	$ 16,190,591
Balance (in shares) at Dec. 31, 2020	7,447,489
Balance (in shares) at Jun. 30, 2021	8,608,706			8,608,706
Balance at Jun. 30, 2021	$ 43,044	10,802,118	8,729,939	$ 19,575,101
Net income			479,610	479,610
Stock-based compensation expense		262,785		262,785
Stock option exercises (in shares)	539,089
Stock option exercises	$ 2,695	1,387,651		1,390,346
Balance at Dec. 31, 2021	$ 45,739	12,452,554	9,209,549	$ 21,707,842
Balance (in shares) at Dec. 31, 2021	9,147,795			9,147,795
Balance (in shares) at Sep. 30, 2021	9,137,795
Balance at Sep. 30, 2021	$ 45,689	12,302,395	8,630,580	$ 20,978,664
Net income			578,969	578,969
Stock-based compensation expense		123,909		123,909
Stock option exercises (in shares)	10,000
Stock option exercises	$ 50	26,250		26,300
Balance at Dec. 31, 2021	$ 45,739	$ 12,452,554	$ 9,209,549	$ 21,707,842
Balance (in shares) at Dec. 31, 2021	9,147,795			9,147,795

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Dec. 31, 2021
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	1.    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A)    BASIS OF PRESENTATION The condensed consolidated balance sheets as of December 31, 2021 and June 30, 2021, the condensed consolidated statements of income for the three and six months ended December 31, 2021 and 2020, the condensed consolidated statements of cash flows for the six months ended December 31, 2021 and 2020, and the condensed consolidated statements of stockholders' equity for the three and six months ended December 31, 2021 and 2020, have been prepared by the Company in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and have not been audited.  In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for all periods presented have been made.  The operating results for any interim period are not necessarily indicative of the operating results that may be experienced for the full fiscal year. Certain information and footnote disclosure normally included in consolidated financial statements prepared in accordance with U.S. GAAP  have been condensed or omitted.  These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2021. The preparation of financial statements in conformity with U.S. GAAP requires the company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses. Significant estimates and assumptions are used for, but are not limited to, allowances for doubtful accounts, reserves for excess and obsolete inventories, long-lived and intangible assets, income tax valuation allowance, non-cash stock-based compensation and deferred compensation. Actual results could differ from the Company's estimates.  B)    INCOME TAXES A state tax provision of $1,031 and $2,062 was recorded for the three and six months ended December 31, 2021.  For the three and six months ended December 31, 2020, the state tax provision was $2,543 and $4,019, respectively. The federal income tax expense was zero for the three and six months ended December 31, 2021 and the three and six months ended December 31, 2020. In the six months ended December 31, 2021, stock option exercises resulted in tax deductible compensation expense of approximately $8,000,000. The deduction of this stock option exercise compensation expense is expected to cause a tax loss in the year ended June 30, 2022, which will be carried forward to future tax years. The tax loss carryforward for the year ending June 30, 2022, including the stock-based compensation expense deductions in the six months ended December 31, 2021, is expected to be approximately $39,800,000. The additional estimated tax loss carryforward increased the deferred tax asset to approximately $12,000,000 as of December 31, 2021, and the future realization of this is uncertain. The valuation allowance was increased to fully offset the deferred tax asset. C) OTHER INCOME In December 2021, the Company recognized approximately $256,000 of other income related to the proceeds from company-owned life insurance policies on its founder, who passed away on December 21, 2021. In July 2021, the Company entered into a license agreement with a headphone manufacturer (whereby the manufacturer licensed the use of certain patents in certain of their headphones). The one-time license fee of $100,000 was also treated as other income. Other income is shown as a separate line on the condensed consolidated statement of income. There was a related payment of $100,000 to a third party that was charged to legal expense in the first quarter. D) DEFERRED COMPENSATION The Company’s deferred compensation liabilities are for a current and former officer and are calculated based on various assumptions which may include compensation, years of service, expected retirement date, discount rates, and mortality tables. The related expense is calculated using the net present value of the expected payments and is included in selling, general and administrative expenses in the Condensed Consolidated Statement of Operations. The Company’s current and non-current compensation obligations are included in accrued liabilities and deferred compensation, respectively, in the Condensed Consolidated Balance Sheets. In December 2021, the Company’s founder and former officer passed away. The Company had a total deferred compensation liability of $472,883 recorded at June 30, 2021 related to the former officer, which at his death was relieved. Deferred compensation income of $472,883 was recognized in selling, general and administrative expenses as a result. Payments of $71,250 made under this arrangement during the six months ended December 31, 2021 were expensed as paid. The remaining deferred compensation liability of $2,264,909 and $2,168,599 recorded at December 31, 2021 and June 30, 2021, respectively, relates to the current officer’s plan. Deferred compensation expense of $45,000 and $96,310 was recognized under this arrangement in the three and six months ended December 31, 2021.

Inventories

Inventories	6 Months Ended
	Dec. 31, 2021
Inventories [Abstract]
Inventories	2.    INVENTORIES The components of inventories were as follows:  December 31, 2021 June 30, 2021Raw materials$ 2,227,757 $ 2,067,572Finished goods 7,312,653 5,621,228Inventories, gross 9,540,410 7,688,800Reserve for obsolete inventory (1,793,961) (1,787,288)Inventories, net$ 7,746,449 $ 5,901,512

Credit Facility and SBA Loan

Credit Facility and SBA Loan	6 Months Ended
	Dec. 31, 2021
Credit Facility and SBA Loan [Abstract]
Credit Facility and SBA Loan	3.    CREDIT FACILITY AND SBA LOAN On May 14, 2019, the Company entered into a secured credit facility ("Credit Agreement") with Town Bank (“Lender”). The Credit Agreement provides for a $5,000,000 revolving secured credit facility with an interest rate of 1.50% over LIBOR. The Credit Agreement also provides for letters of credit for the benefit of the Company of up to a sublimit of $1,000,000. There are no unused line fees in the credit facility. On January 28, 2021, the Credit Agreement was amended to extend the expiration to October 31, 2022, and to change the interest rate to Wall Street Journal Prime less 1.50%. The Company and the Lender also entered into a General Business Security Agreement dated May 14, 2019 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 Credit Agreement contains certain affirmative and negative covenants customary for financings of this type. The negative covenants include restrictions on other indebtedness, liens, fundamental changes, certain investments, disposition of assets, mergers and liquidations, among other restrictions. As of December 31, 2021, the Company was in material compliance with all covenants related to the Credit Agreement. As of December 31, 2021, and June 30, 2021, there were no outstanding borrowings on the facility.  On April 13, 2020, the Company received an unsecured loan (the "SBA Loan") for $506,700 under the Small Business Administration ("SBA") Paycheck Protection Program (the “PPP”) of the CARES Act through Town Bank. On November 3, 2020, the Company was notified that the full principal amount of $506,700 had been forgiven and was recorded as other income in the accompanying condensed statements of income for the three and six months ended December 31, 2020.  ‎

Revenue Recognition

Revenue Recognition	6 Months Ended
	Dec. 31, 2021
Revenue Recognition [Abstract]
Revenue Recognition	4.    REVENUE RECOGNITION The Company disaggregates its net sales by geographical location as it believes it best depicts how the nature, timing and uncertainty of net sales and cash flows are affected by economic factors. The following table summarizes net sales by geographical location:  Three Months Ended Six Months Ended December 31, December 31, 2021 2020 2021 2020United States$ 3,191,867 $ 3,652,303 $ 6,003,559 $ 7,598,576Export 1,224,019 1,277,486 2,777,394 2,539,508Net Sales$ 4,415,886 $ 4,929,789 $ 8,780,953 $ 10,138,084 Deferred revenue relates primarily to consumer and customer warranties. These constitute future performance obligations and the Company defers revenue related to these future performance obligations. In the six months ended December 31, 2021 and 2020, the Company recognized revenue, which was included in the deferred revenue liability at the beginning of the periods, of $335,578 and $200,424, respectively, for performance obligations related to consumer and customer warranties.  The deferred revenue liability was $593,920 as of June 30, 2020. The Company estimates that the deferred revenue performance obligations are satisfied within one year to three years and therefore uses that same time frame for recognition of the deferred revenue.

(Loss) Income Per Common and Co

(Loss) Income Per Common and Common Stock Equivalent Share	6 Months Ended
	Dec. 31, 2021
(Loss) Income Per Common and Common Stock Equivalent Share [Abstract]
(Loss) Income Per Common and Common Stock Equivalent Share	5.    INCOME PER COMMON AND COMMON STOCK EQUIVALENT SHARE Basic income per share is computed based on the weighted-average number of common shares outstanding.  Diluted income per common share is calculated assuming the exercise of stock options except where the result would be anti-dilutive.  The following table reconciles the numerator and denominator used to calculate basic and diluted income per share: Three Months Ended December 31, Six Months Ended December 31, 2021 2020 2021 2020Numerator Net income$ 578,969 $ 508,890 $ 479,610 $ 635,819 Denominator Weighted average shares, basic 9,144,099 7,405,758 8,994,023 7,405,295Dilutive effect of stock compensation awards (1) 920,614 47,692 1,068,892 18,944Diluted shares 10,064,713 7,453,450 10,062,915 7,424,239 Net income attributable to common shareholders per share: Basic$ 0.06 $ 0.07 $ 0.05 $ 0.09Diluted$ 0.06 $ 0.07 $ 0.05 $ 0.09 (1) Excludes approximately 2,490,061 and 2,564,584 weighted average stock options during the three and six months ended December 31, 2020, respectively, as the impact of such awards was anti-dilutive. For the three and six months ended December 31, 2021, no stock options were anti-dilutive.

Related Party Leases

Related Party Leases	6 Months Ended
	Dec. 31, 2021
Related Party Leases [Abstract]
Related Party Leases	6.    RELATED PARTY LEASE The Company leases its facility in Milwaukee, Wisconsin from Koss Holdings, LLC, which is wholly-owned by the Company’s former Chairman’s revocable trust.  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 and included an option to renew at the same rate for an additional five years ending June 30, 2028.  The Company is responsible for all property maintenance, insurance, taxes and other normal expenses related to ownership.

Accounts Receivable Concentrati

Accounts Receivable Concentrations	6 Months Ended
	Dec. 31, 2021
Accounts Receivable Concentrations [Abstract]
Accounts Receivable Concentrations	7.    ACCOUNTS RECEIVABLE CONCENTRATIONS As of December 31, 2021 the Company’s top three accounts receivable customers represented approximately 26%, 23%, and 13% of trade accounts receivables. These same customers represented approximately 24%, 19%, and 0% of trade accounts receivable at June 30, 2021.

Legal Matters

Legal Matters	6 Months Ended
	Dec. 31, 2021
Legal Matters [Abstract]
Legal Matters	8.    LEGAL MATTERS As of December 31, 2021, the Company is involved in the matters described below: • In July 2020, the Company filed complaints in United States District Court against each of Apple Inc., Bose Corporation, PEAG, LLC d/b/a JLab Audio, Plantronics, Inc. and Polycom, Inc., and Skullcandy, Inc. The complaints allege infringement on the Company’s patents relating to its wireless audio technology. In the event that a monetary award or judgment is received by the Company in connection with these complaints, all or portions of such amounts will be due to third parties. The Company does not expect to incur additional fees and costs related to these lawsuits that will have a material impact to its financial statements. Depending on the response to and the underlying results of the enforcement program, the Company may continue to litigate its claims, enter into licensing arrangements or reach some other outcome potentially advantageous to its competitive position. • Early in fiscal year 2020, the Company was notified by One E-Way, Inc. that some of the Company's wireless products may infringe on certain One E-Way patents. No lawsuits involving these allegations have yet been filed and served on the Company. The ultimate resolution of these matters is not determinable unless otherwise noted. We also are subject to a variety of other claims and suits that arise from time to time in the ordinary course of our business. Although management currently believes that resolving these claims against us, individually or in aggregate, will not have a material adverse impact on our Condensed Consolidated Financial Statements, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Dec. 31, 2021
Summary of Significant Accounting Policies [Abstract]
Basis of Presentation	A)    BASIS OF PRESENTATION The condensed consolidated balance sheets as of December 31, 2021 and June 30, 2021, the condensed consolidated statements of income for the three and six months ended December 31, 2021 and 2020, the condensed consolidated statements of cash flows for the six months ended December 31, 2021 and 2020, and the condensed consolidated statements of stockholders' equity for the three and six months ended December 31, 2021 and 2020, have been prepared by the Company in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and have not been audited.  In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for all periods presented have been made.  The operating results for any interim period are not necessarily indicative of the operating results that may be experienced for the full fiscal year. Certain information and footnote disclosure normally included in consolidated financial statements prepared in accordance with U.S. GAAP  have been condensed or omitted.  These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2021. The preparation of financial statements in conformity with U.S. GAAP requires the company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses. Significant estimates and assumptions are used for, but are not limited to, allowances for doubtful accounts, reserves for excess and obsolete inventories, long-lived and intangible assets, income tax valuation allowance, non-cash stock-based compensation and deferred compensation. Actual results could differ from the Company's estimates.
Income Taxes	B)    INCOME TAXES A state tax provision of $1,031 and $2,062 was recorded for the three and six months ended December 31, 2021.  For the three and six months ended December 31, 2020, the state tax provision was $2,543 and $4,019, respectively. The federal income tax expense was zero for the three and six months ended December 31, 2021 and the three and six months ended December 31, 2020. In the six months ended December 31, 2021, stock option exercises resulted in tax deductible compensation expense of approximately $8,000,000. The deduction of this stock option exercise compensation expense is expected to cause a tax loss in the year ended June 30, 2022, which will be carried forward to future tax years. The tax loss carryforward for the year ending June 30, 2022, including the stock-based compensation expense deductions in the six months ended December 31, 2021, is expected to be approximately $39,800,000. The additional estimated tax loss carryforward increased the deferred tax asset to approximately $12,000,000 as of December 31, 2021, and the future realization of this is uncertain. The valuation allowance was increased to fully offset the deferred tax asset.
Other Income	C) OTHER INCOME In December 2021, the Company recognized approximately $256,000 of other income related to the proceeds from company-owned life insurance policies on its founder, who passed away on December 21, 2021. In July 2021, the Company entered into a license agreement with a headphone manufacturer (whereby the manufacturer licensed the use of certain patents in certain of their headphones). The one-time license fee of $100,000 was also treated as other income. Other income is shown as a separate line on the condensed consolidated statement of income. There was a related payment of $100,000 to a third party that was charged to legal expense in the first quarter.
Deferred Compensation	D) DEFERRED COMPENSATION The Company’s deferred compensation liabilities are for a current and former officer and are calculated based on various assumptions which may include compensation, years of service, expected retirement date, discount rates, and mortality tables. The related expense is calculated using the net present value of the expected payments and is included in selling, general and administrative expenses in the Condensed Consolidated Statement of Operations. The Company’s current and non-current compensation obligations are included in accrued liabilities and deferred compensation, respectively, in the Condensed Consolidated Balance Sheets. In December 2021, the Company’s founder and former officer passed away. The Company had a total deferred compensation liability of $472,883 recorded at June 30, 2021 related to the former officer, which at his death was relieved. Deferred compensation income of $472,883 was recognized in selling, general and administrative expenses as a result. Payments of $71,250 made under this arrangement during the six months ended December 31, 2021 were expensed as paid. The remaining deferred compensation liability of $2,264,909 and $2,168,599 recorded at December 31, 2021 and June 30, 2021, respectively, relates to the current officer’s plan. Deferred compensation expense of $45,000 and $96,310 was recognized under this arrangement in the three and six months ended December 31, 2021.

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Dec. 31, 2021
Inventories [Abstract]
Components of Inventories	December 31, 2021 June 30, 2021Raw materials$ 2,227,757 $ 2,067,572Finished goods 7,312,653 5,621,228Inventories, gross 9,540,410 7,688,800Reserve for obsolete inventory (1,793,961) (1,787,288)Inventories, net$ 7,746,449 $ 5,901,512

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Dec. 31, 2021
Revenue Recognition [Abstract]
Disaggregation of Revenue	Three Months Ended Six Months Ended December 31, December 31, 2021 2020 2021 2020United States$ 3,191,867 $ 3,652,303 $ 6,003,559 $ 7,598,576Export 1,224,019 1,277,486 2,777,394 2,539,508Net Sales$ 4,415,886 $ 4,929,789 $ 8,780,953 $ 10,138,084

(Loss) Income Per Common and _2

(Loss) Income Per Common and Common Stock Equivalent Sharee (Tables)	6 Months Ended
	Dec. 31, 2021
(Loss) Income Per Common and Common Stock Equivalent Share [Abstract]
(Loss) Income Per Common and Common Stock Equivalent Share	Three Months Ended December 31, Six Months Ended December 31, 2021 2020 2021 2020Numerator Net income$ 578,969 $ 508,890 $ 479,610 $ 635,819 Denominator Weighted average shares, basic 9,144,099 7,405,758 8,994,023 7,405,295Dilutive effect of stock compensation awards (1) 920,614 47,692 1,068,892 18,944Diluted shares 10,064,713 7,453,450 10,062,915 7,424,239 Net income attributable to common shareholders per share: Basic$ 0.06 $ 0.07 $ 0.05 $ 0.09Diluted$ 0.06 $ 0.07 $ 0.05 $ 0.09 (1) Excludes approximately 2,490,061 and 2,564,584 weighted average stock options during the three and six months ended December 31, 2020, respectively, as the impact of such awards was anti-dilutive. For the three and six months ended December 31, 2021, no stock options were anti-dilutive.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details) - USD ($)	1 Months Ended		3 Months Ended		6 Months Ended
	Dec. 31, 2021	Jul. 31, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Jun. 30, 2021
Operating Loss Carryforwards [Line Items]
Other income - Net gain from life insurance benefits	$ 256,000				$ 255,975
Income Tax Expense (Benefit)			$ 1,031	$ 2,543	2,062	$ 4,019
Share based tax expense					8,000,000
Tax Credit Carryforward, Amount	39,800,000		39,800,000		39,800,000
Deferred Tax Assets, Gross	12,000,000		12,000,000		12,000,000
Other income		$ 100,000	255,975	506,700	355,975	506,700
Legal Fees					100,000
Deferred Compensation Arrangement with Individual, Distribution Paid					71,250	75,000
Deferred Compensation Arrangement with Individual, Compensation Expense					(472,883)
Current Officer's Plan [Member]
Operating Loss Carryforwards [Line Items]
Deferred Compensation Liability, Current and Noncurrent	$ 2,264,909		2,264,909		2,264,909		$ 2,168,599
Deferred Compensation Arrangement with Individual, Compensation Expense			45,000		96,310
Former Officer [Member]
Operating Loss Carryforwards [Line Items]
Deferred Compensation Liability, Current and Noncurrent							472,883
Deferred Income							$ 472,883
Deferred Compensation Arrangement with Individual, Distribution Paid					71,250
State and Local Jurisdiction [Member]
Operating Loss Carryforwards [Line Items]
Income Tax Expense (Benefit)			1,031	2,543	2,062	4,019
Federal [Member]
Operating Loss Carryforwards [Line Items]
Income Tax Expense (Benefit)			$ 0	$ 0	$ 0	$ 0

Inventories (Details)

Inventories (Details) - USD ($)	Dec. 31, 2021	Jun. 30, 2021
Inventories [Abstract]
Raw materials	$ 2,227,757	$ 2,067,572
Finished goods	7,312,653	5,621,228
Inventories, gross	9,540,410	7,688,800
Reserve for obsolete inventory	(1,793,961)	(1,787,288)
Inventories, net	$ 7,746,449	$ 5,901,512

Credit Facility and SBA Loan (D

Credit Facility and SBA Loan (Details) - USD ($)	6 Months Ended
	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
SBA Loan [Member]
Line of Credit Facility [Line Items]
Principal amount			$ 506,700
Town Bank [Member] | Credit Agreement [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.00%
Long-term Line of Credit, Total	$ 0	$ 0
Town Bank [Member] | Credit Agreement [Member] | Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 5,000,000
Town Bank [Member] | Credit Agreement [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.50%
Town Bank [Member] | Credit Agreement [Member] | Letter of Credit [Member]
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,000,000
Town Bank [Member] | Amended Credit Agreement [Member] | Revolving Credit Facility [Member] | Prime Rate [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.50%

Revenue Recognition (Narrative)

Revenue Recognition (Narrative) (Details) - USD ($)	6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Jun. 30, 2020
Revenue recognized	$ 335,578	$ 200,424
Deferred revenue liability			$ 593,920
Minimum [Member]
Contract with Customer, Liability, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year)	1 year
Maximum [Member]
Contract with Customer, Liability, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year)	3 years

Revenue Recognition (Disaggrega

Revenue Recognition (Disaggregation of Revenue) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
Net Sales	$ 4,415,886	$ 4,929,789	$ 8,780,953	$ 10,138,084
United States [Member]
Disaggregation of Revenue [Line Items]
Net Sales	3,191,867	3,652,303	6,003,559	7,598,576
Export [Member]
Disaggregation of Revenue [Line Items]
Net Sales	$ 1,224,019	$ 1,277,486	$ 2,777,394	$ 2,539,508

(Loss) Income Per Common and _3

(Loss) Income Per Common and Common Stock Equivalent Share (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2021	Dec. 31, 2020
(Loss) Income Per Common and Common Stock Equivalent Share [Abstract]
Net (loss) income	$ 578,969	$ 508,890	$ 479,610	$ 635,819
Weighted average shares, basic (in shares)	9,144,099	7,405,758	8,994,023	7,405,295
Dilutive effect of stock compensation awards (in shares)	920,614	47,692	1,068,892	18,944
Diluted shares (in shares)	10,064,713	7,453,450	10,062,915	7,424,239
Basic (in dollars per share)	$ 0.06	$ 0.07	$ 0.05	$ 0.09
Diluted (in dollars per share)	$ 0.06	$ 0.07	$ 0.05	$ 0.09
Anti-dilutive shares	0	2,490,061	0	2,564,584

Related Party Leases (Details)

Related Party Leases (Details)	6 Months Ended
	Dec. 31, 2021USD ($)
Lessee, Lease, Description [Line Items]
Lease Extension Per Year	$ 380,000
Lessee, Operating Lease, Renewal Term (Year)	5 years
Additional Renewal [Member]
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Renewal Term (Year)	5 years

Accounts Receivable Concentra_2

Accounts Receivable Concentrations (Details) - Customer Concentration Risk [Member]	6 Months Ended
	Dec. 31, 2021customer
Trade Accounts Receivable [Member] | Company 1 [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	24.00%
Trade Accounts Receivable [Member] | Company 2 [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	19.00%
Trade Accounts Receivable [Member] | Company 3 [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	0.00%
Accounts Receivable [Member]
Concentration Risk [Line Items]
Number Of Major Customers	3
Accounts Receivable [Member] | Company 1 [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	26.00%
Accounts Receivable [Member] | Company 2 [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	23.00%
Accounts Receivable [Member] | Company 3 [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	13.00%

Legal Matters (Details)

Legal Matters (Details)	6 Months Ended
	Dec. 31, 2021item
Legal Matters [Abstract]
Number of lawsuits	0