EVI Industries (EVI) 10-K 23 Sep 15 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Jun. 30, 2015	Sep. 17, 2015	Dec. 31, 2014
Document And Entity Information
Entity Registrant Name	EnviroStar, Inc.
Entity Central Index Key	65,312
Document Type	10-K
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 9,488,704
Entity Common Stock, Shares Outstanding		7,033,732
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,015

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Current assets
Cash and cash equivalents	$ 3,908,974	$ 9,224,340
Accounts and trade notes receivable, net of allowance for doubtful accounts of $134,000 and $140,000, respectively	1,924,517	923,788
Inventories, net	2,808,910	2,836,220
Lease and mortgage receivables, net	15,277	12,494
Refundable income taxes	197,764	62,880
Deferred income taxes	109,261	100,777
Other current assets	72,144	414,079
Total current assets	9,036,847	13,574,578
Leases and mortgages receivable - due after one year	7,533	14,033
Equipment and improvements, net	188,243	181,629
Intangible assets, net	33,482	40,880
Deferred income taxes	16,667	6,967
Total assets	9,282,772	13,818,087
Current liabilities
Accounts payable and accrued expenses	1,403,583	4,750,266
Accrued employee expenses	623,671	$ 906,381
Deferred income	20,464
Customer deposits	2,479,508	$ 3,670,965
Total current liabilities	4,527,226	9,327,612
Total liabilities	$ 4,527,226	$ 9,327,612
Commitments and contingencies
Shareholders' equity
Preferred stock, $1.00 par value; Authorized shares - 200,000; none issued and outstanding
Common stock, $0.025 par value: Authorized shares - 15,000,000; 7,065,500, shares issued, including shares held in treasury	$ 176,638	$ 176,638
Additional paid-in capital	2,095,069	2,095,069
Retained earnings	2,487,777	2,222,706
Treasury stock, 31,768 shares, at cost	(3,938)	(3,938)
Total shareholders' equity	4,755,546	4,490,475
Total liabilities and shareholders' equity	$ 9,282,772	$ 13,818,087

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Consolidated Balance Sheets [Abstract]
Accounts and trade notes receivable, allowance for doubtful accounts	$ 134,000	$ 140,000
Preferred stock, par value	$ 1	$ 1
Preferred stock, shares authorized	200,000	200,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.025	$ 0.025
Common stock, shares authorized	15,000,000	15,000,000
Common stock, shares issued	7,065,500	7,065,500
Treasury stock, shares	31,768	31,768

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Revenues:
Net sales	$ 30,176,957	$ 33,110,753
Development fees, franchise and license fees, commission income and other revenue	577,613	722,665
Total revenues	30,754,570	33,833,418
Cost of sales, net of discounts	22,806,878	26,038,664
Selling, general and administrative expenses	5,269,247	5,196,045
Total	28,076,125	31,234,709
Operating income	2,678,445	2,598,709
Other income and expense:
Interest income	4,303	6,016
Earnings before provision for income taxes	2,682,748	2,604,725
Provision for income taxes	1,010,931	984,421
Net earnings	$ 1,671,817	$ 1,620,304
Net earnings per share - basic and diluted	$ 0.24	$ 0.23
Weighted average number of basic and diluted common shares outstanding	7,033,732	7,033,732

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($)	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Retained Earnings [Member]
Balance, beginning at Jun. 30, 2013	$ 5,683,665	$ 176,638	$ 2,095,069	$ (3,938)	$ 3,415,896
Balance, shares, beginning at Jun. 30, 2013		7,065,500		31,768
Dividends paid ($.20 and $.40 per share for the year ended 2015 and 2014, respectively)	(2,813,494)				(2,813,494)
Net earnings	1,620,304				1,620,304
Balance, ending at Jun. 30, 2014	4,490,475	$ 176,638	2,095,069	$ (3,938)	2,222,706
Balance, shares, ending at Jun. 30, 2014		7,065,500		31,768
Dividends paid ($.20 and $.40 per share for the year ended 2015 and 2014, respectively)	(1,406,746)				(1,406,746)
Net earnings	1,671,817				1,671,817
Balance, ending at Jun. 30, 2015	$ 4,755,546	$ 176,638	$ 2,095,069	$ (3,938)	$ 2,487,777
Balance, shares, ending at Jun. 30, 2015		7,065,500		31,768

Consolidated Statements of Sha6

Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Consolidated Statements of Shareholders' Equity [Abstract]
Dividends paid per share	$ 0.20	$ 0.40

Consolidated Statements of Cash

Consolidated Statements of Cash Flow - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating activities:
Net earnings	$ 1,671,817	$ 1,620,304
Adjustments to reconcile net income to net cash and cash equivalents provided (used) by operating activities:
Depreciation and amortization	58,806	59,870
Bad debt expense	25,173	5,541
Inventory reserve	10,653	(2,577)
Provision for deferred income taxes	(18,185)	10,356
(Increase) decrease in operating assets:
Accounts and trade notes receivables	(1,025,902)	1,311,303
Inventories	16,657	(835,826)
Lease and mortgage receivables	3,717	53,761
Refundable income taxes	(134,884)	(62,880)
Other current assets	341,935	39,885
Increase (decrease) in operating liabilities:
Accounts payable and accrued expenses	(3,346,683)	3,496,840
Accrued employee expenses	$ (282,710)	(553,493)
Income taxes payable		(166,250)
Deferred income	$ 20,464	(16,782)
Customer deposits	(1,191,457)	1,198,632
Net cash (used) provided by operating activities	(3,850,599)	6,158,684
Investing activities:
Capital expenditures	(58,021)	(65,110)
Net cash used by investing activities	(58,021)	(65,110)
Financing activities:
Dividends paid	(1,406,746)	(2,813,494)
Net cash used by financing activities	(1,406,746)	(2,813,494)
Net (decrease) increase in cash and cash equivalents	(5,315,366)	3,280,080
Cash and cash equivalents at beginning of period	9,224,340
Cash and cash equivalents at end of period	3,908,974	9,224,340
Supplemental disclosure of cash flow information:
Cash paid for income taxes	$ 1,164,000	$ 1,124,000

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Jun. 30, 2015
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	1. Summary of Significant Nature of Business EnviroStar, Inc. and its subsidiaries (collectively, the “Company”) sell commercial and industrial laundry and dry cleaning equipment, steam and hot water boilers manufactured by others, as well as replacement parts and accessories and provides maintenance services. The Company also sells individual and area franchises under the DRYCLEAN USA name and develops new turn-key dry cleaning establishments for resale to third parties. The Company primarily sells to customers located in the United States, the Caribbean and Latin America. Principles of The accompanying consolidated financial statements include the accounts of EnviroStar, Inc. and its wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated in consolidation. Revenue Products are generally shipped Free on Board (“FOB”) from the Company's warehouse or drop shipped from the Company's vendor as FOB, at which time risk of loss and title passes to the purchaser. Sales are reported net of any discounts. Revenue is recognized when there is persuasive evidence of the arrangement, shipment or delivery has occurred, the price is fixed and determinable and collectability is reasonably assured. In some cases, the Company collects non-income related taxes, including sales and use tax, from its customers and remits those taxes to governmental authorities. The Company presents revenues net of these taxes. Shipping, delivery and handling fee income of approximately $ 1,052,000 1,069,000 Individual franchise arrangements include a license and provide for payment of initial franchise fees, as well as continuing royalties. Initial franchise fees are generally recognized upon the opening of the franchised store, which is evidenced by a certificate from the franchisee, indicating that the store has opened, substantial performance has been completed and collectability is reasonably assured. Continuing royalties represent regular contractual payments received for the use of the “DRYCLEAN USA” marks, which are recognized as revenue when earned, generally on a straight line basis. Royalty fees recognized during the years ended June 30, 2015 and 2014 were approximately $ 116,000 169,000 43,000 415,000 Commissions and development fees are recorded when earned, generally when the services are performed or the transaction is closed. Accounts and Trade Accounts and trade notes receivable are customer obligations due under normal trade terms. The Company sells its products primarily to independent and franchise dry cleaning stores and chains, laundry plants, hotels, motels, cruise lines, hospitals, nursing homes, government institutions, coin laundry stores and distributors. equipment as collateral for the receivable. 134,000 140,000 Cash and cash The Company considers all short term instruments with an original maturity of three months or less to be cash equivalents. Leases and The Company sells products to certain customers under lease and mortgage arrangements for terms typically ranging from one five Inventories Inventories consist principally of equipment and spare parts. Equipment is valued at the lower of cost, determined on the specific identification method, or market. Spare parts are valued at the lower of average cost or market. Equipment, Property and equipment are stated at cost. Depreciation and amortization are calculated on straight-line methods over useful lives of five seven the shorter of ten Franchise License, The Company follows ASC Topic 350, “Intangibles – Goodwill and Other” (“ASC 350”), which requires that finite-lived intangibles be amortized over their estimated useful life while indefinite-lived intangibles and goodwill are not amortized. Franchise license, trademark, and other finite-lived intangible assets are stated at cost less accumulated amortization, and are amortized on a straight-line basis over the estimated future periods to be benefited ( 10 15 Asset Impairments ASC Topic 360, “Property, Plant, and Equipment” (“ASC 360”) and ASC 350 require the Company to periodically review the carrying amounts of its long-lived assets, including property, plant and equipment and certain identifiable intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If the assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of their carrying amount or fair value less estimated costs to sell. The Company has concluded that there was no Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates which are particularly significant to the consolidated financial statements include estimates relating to the determination of impairment of assets, the useful life of property and equipment, recoverability of deferred income tax assets, allowance for doubtful accounts and inventory valuations. Earnings Per Share Basic earnings per share are computed on the basis of the weighted average number of common shares outstanding during each year. Diluted earnings per share are computed on the basis of the weighted average number of common shares and dilutive securities outstanding during each year. The Company had no Supplier The Company purchases laundry, drycleaning machines, boilers and other products from a number of manufacturers and suppliers. Two 27 35 15 Advertising Costs The Company expenses the cost of advertising as of the first date an advertisement is run. The Company expensed approximately $ 18,400 54,000 Fair Value of The Company's financial instruments consist principally of cash and cash equivalents and accounts and trade notes receivable. Due to their relatively short-term nature or variable rates, the carrying amounts of those financial instruments, as reflected in the accompanying consolidated balance sheets, approximate their estimated fair value. Their estimated fair value is not necessarily indicative of the amounts the Company could realize from those assets in a current market exchange or of future earnings or cash flows. Customer Deposits Customer deposits represent advances paid by certain customers when placing orders for equipment with the Company. Income Taxes The Company follows ASC Topic 740, “Income Taxes” (“ASC 740”). Significant judgment is required in developing the Company's provision for income taxes, deferred tax assets and liabilities and any valuation allowances that might be required against the deferred tax assets. The Company follows ASC Topic 740-10-25 “Accounting for Uncertainty in Income” which contains a two-step approach to recognizing and measuring uncertain tax positions. Adopted Accounting In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers.” The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” The ASU is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2017. Early application is not permitted. The Company is currently evaluating the impact, if any, that adopting this standard will have on our consolidated financial statements. Management believes the impact of other issued standards and updates, which are not yet effective, will not have a material impact on the Company's consolidated financial position, results of operations or cash flows upon adoption.

Inventories

Inventories	12 Months Ended
	Jun. 30, 2015
Inventories [Abstract]
Inventories	2. Inventories Inventories are comprised of: June 30, 2015 2014 Equipment and parts $ 2,868,636 $ 2,885,293 Reserve (59,726 ) (49,073 ) $ 2,808,910 $ 2,836,220 The Company has established reserves of $ 59,726 49,073 11,600 14,800

Equipment and Improvements

Equipment and Improvements	12 Months Ended
	Jun. 30, 2015
Equipment and Improvements [Abstract]
Equipment and Improvements	3. Equipment and Major classes of equipment and improvements consist of the following: June 30, 2015 2014 Furniture and equipment $ 451,069 $ 583,245 Leasehold improvements 434,869 399,179 885,938 982,424 Accumulated depreciation and amortization (697,695 ) (800,795 ) $ 188,243 $ 181,629 Depreciation and amortization of equipment and improvements amounted to $ 51,407 47,551 154,507 no

Intangible Assets, net

Intangible Assets, net	12 Months Ended
	Jun. 30, 2015
Intangible Assets, net [Abstract]
Intangible Assets, net	4. Intangible Assets, Franchise license, trademarks and other intangible assets consist of the following: Estimated June 30, June 30, Franchise license agreements 10 $ 529,500 $ 529,500 Trademarks, patents and 10 15 230,075 230,075 759,575 759,575 Accumulated amortization (726,093 ) (718,695 ) $ 33,482 $ 40,880 Amortization expense was $ 7,399 12,319 Based on the carrying amount of intangibles as of June 30, 2015, and assuming no future impairment of the underlying assets, the estimated future amortization at Years ending June 30, 2016 $ 7,017 2017 7,017 2018 6,915 2019 6,468 2020 6,065 Total $ 33,482

Leases and Mortgages Receivable

Leases and Mortgages Receivable	12 Months Ended
	Jun. 30, 2015
Leases and Mortgages Receivable [Abstract]
Lease and Mortgage Receivables	5. Leases and Leases and mortgages receivable result from customer leases of equipment under arrangements which qualify as sales type leases. At June 30, 2015 and 2014 , future lease payments, net of deferred interest ($ 2,564 and $ 4,952 at June 30, 2015 and 2014 , respectively), due under these leases was $ 22,810 and $ 26,527 , respectively.

Income Taxes

Income Taxes	12 Months Ended
	Jun. 30, 2015
Income Taxes [Abstract]
Income Taxes	6. Income Taxes The following are the components of income taxes: Years ended June 30, 2015 2014 Current Federal $ 878,700 $ 831,695 State 150,416 142,370 1,029,116 974,065 Deferred Federal (15,527 ) 8,843 State (2,658 ) 1,513 (18,185 ) 10,356 $ 1,010,931 $ 984,421 The reconciliation of income tax expense computed at the Federal statutory tax rate of 34 Years ended June 30, 2015 2014 Tax at the statutory rate $ 912,134 $ 885,607 State income taxes, 97,384 94,551 Other 1,413 4,263 $ 1,010,931 $ 984,421 Effective tax rate 37.7 % 37.8 % Deferred income taxes reflect the net tax effect of temporary differences between the bases of assets and liabilities for financial reporting purposes and the bases used for income tax purposes. Significant components of the Company's current and noncurrent deferred tax assets and liabilities are as follows: Years ended June 30, 2015 2014 Current deferred tax assets: Allowance for doubtful accounts $ 50,425 $ 52,683 Inventory capitalization 36,361 29,627 Inventory reserves 22,475 18,467 109,261 100,777 Noncurrent deferred tax assets (liabilities): Equipment and improvements 16,667 5,685 Franchise, trademarks and other — 1,282 16,667 6,967 Total net deferred income tax assets $ 125,928 $ 107,744 As of June 30, 2015, the Company was subject to potential Federal and State tax examinations for the tax years 2011 through 2014.

Credit Agreement and Term Loan

Credit Agreement and Term Loan	12 Months Ended
	Jun. 30, 2015
Credit Agreement and Term Loan [Abstract]
Credit Agreement and Term Loan	7. Credit The Company is a party to a bank loan agreement which provides the Company with a revolving credit facility of $ 2,250,000 2.50 November 1, 2015

Related Party Transactions

Related Party Transactions	12 Months Ended
	Jun. 30, 2015
Related Party Transactions [Abstract]
Related Party Transactions	8. Related Party The Company's wholly-owned subsidiary, Steiner-Atlantic Corp. (“Steiner Atlantic”) leases warehouse and office space under an operating lease from 290 NE 68 Street, LLC (the “Landlord”), which is owned by Michael S. Steiner and Robert Steiner. On November 1, 2014, Steiner-Atlantic entered into a new three November 1, 2014 123,300 126,960 130,800 130,600 126,900 The Company paid a law firm, in which a director is Senior Counsel, $ 83,500 60,000

Concentrations of Credit Risk

Concentrations of Credit Risk	12 Months Ended
	Jun. 30, 2015
Concentrations of Credit Risk [Abstract]
Concentrations of Credit Risk	9. Concentrations Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, accounts and trade receivables and leases and mortgages receivable. The Company maintains its cash and cash equivalents, including a money market account, at a large bank. At June 30, 2015, bank deposits exceeded Federal Deposit Insurance Corporation limits by approximately $ 3,400,000 . Concentrations of credit risk with respect to trade receivables are limited due to a large customer base. Also, based on the Company's credit evaluation, trade receivables are often collateralized by the equipment sold. No customers provided more than 10 % of fiscal 2015 revenues.

Commitments

Commitments	12 Months Ended
	Jun. 30, 2015
Commitments [Abstract]
Commitments	10. Commitments In addition to the warehouse and office space leased from 290 NE 68 Street, LLC (see Note 8), the Company leases an additional warehouse facility from an unrelated third party under an operating lease expiring in December 2017. Minimum future rental commitments for both leases approximate the following: Years ending June 30, 2016 $ 190,000 2017 194,000 2018 74,400 2019 — 2020 — Total $ 458,400 Rent expense under all leases aggregated approximately $ 186,000 177,000 The Company, through its manufacturers, provides parts warranties for products sold. These warranties are mainly the responsibility of the manufacturer. As such, warranty related expenses are insignificant to the consolidated financial statements.

Retirement Plan

Retirement Plan	12 Months Ended
	Jun. 30, 2015
Retirement Plan [Abstract]
Retirement Plan	11. Retirement Plan The Company has a participatory deferred compensation plan under which it matches employee contributions up to 3 one 21,900 21,600

Segment Information

Segment Information	12 Months Ended
	Jun. 30, 2015
Segment Information [Abstract]
Segment Information	12. Segment The Company's reportable segments are strategic businesses that offer different products and services. They are managed separately because each business requires different technology and marketing strategies. Steiner-Atlantic Corp., a wholly-owned subsidiary of the Company, comprises the commercial and industrial laundry and dry cleaning equipment and boiler segment. DRYCLEAN USA License Corp., a wholly-owned subsidiary of the Company, comprises the license and franchise operations segment. The Company primarily evaluates the operating performance of its segments based on the categories noted in the table below. The Company has no sales between segments. Financial information for the Company's business segments is as follows Year ended June 30, 2015 2014 Revenues: Commercial and industrial laundry and $ 30,578,038 $ 33,234,641 License and franchise operations 176,532 598,777 Total revenues $ 30,754,570 $ 33,833,418 Operating income (loss): Commercial and industrial laundry and $ 3,015,727 $ 2,613,258 License and franchise operations 47,056 329,069 Corporate (384,338 ) (343,618 ) Total operating income $ 2,678,445 $ 2,598,709 Identifiable assets: Commercial and industrial laundry and $ 8,392,268 $ 13,067,091 License and franchise operations 556,331 576,891 Corporate 334,173 174,105 Total assets $ 9,282,772 $ 13,818,087 For the years ended June 30, 2015 and 2014, export revenues, principally to the Caribbean and Latin America, aggregated approximately $ 8,520,000 9,414,000 8,372,000 8,855,000

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Jun. 30, 2015
Summary of Significant Accounting Policies [Abstract]
Principles of Consolidation	Principles of The accompanying consolidated financial statements include the accounts of EnviroStar, Inc. and its wholly-owned subsidiaries. Intercompany transactions and balances have been eliminated in consolidation.
Revenue Recognition	Revenue Products are generally shipped Free on Board (“FOB”) from the Company's warehouse or drop shipped from the Company's vendor as FOB, at which time risk of loss and title passes to the purchaser. Sales are reported net of any discounts. Revenue is recognized when there is persuasive evidence of the arrangement, shipment or delivery has occurred, the price is fixed and determinable and collectability is reasonably assured. In some cases, the Company collects non-income related taxes, including sales and use tax, from its customers and remits those taxes to governmental authorities. The Company presents revenues net of these taxes. Shipping, delivery and handling fee income of approximately $ 1,052,000 1,069,000 Individual franchise arrangements include a license and provide for payment of initial franchise fees, as well as continuing royalties. Initial franchise fees are generally recognized upon the opening of the franchised store, which is evidenced by a certificate from the franchisee, indicating that the store has opened, substantial performance has been completed and collectability is reasonably assured. Continuing royalties represent regular contractual payments received for the use of the “DRYCLEAN USA” marks, which are recognized as revenue when earned, generally on a straight line basis. Royalty fees recognized during the years ended June 30, 2015 and 2014 were approximately $ 116,000 169,000 43,000 415,000 Commissions and development fees are recorded when earned, generally when the services are performed or the transaction is closed.
Accounts and Trade Notes Receivable	Accounts and Trade Accounts and trade notes receivable are customer obligations due under normal trade terms. The Company sells its products primarily to independent and franchise dry cleaning stores and chains, laundry plants, hotels, motels, cruise lines, hospitals, nursing homes, government institutions, coin laundry stores and distributors. equipment as collateral for the receivable. 134,000 140,000
Cash and cash Equivalents	Cash and cash The Company considers all short term instruments with an original maturity of three months or less to be cash equivalents.
Leases and Mortgages Receivable	Leases and The Company sells products to certain customers under lease and mortgage arrangements for terms typically ranging from one five
Inventories	Inventories Inventories consist principally of equipment and spare parts. Equipment is valued at the lower of cost, determined on the specific identification method, or market. Spare parts are valued at the lower of average cost or market.
Equipment, Improvements and Depreciation	Equipment, Property and equipment are stated at cost. Depreciation and amortization are calculated on straight-line methods over useful lives of five seven the shorter of ten
Franchise License, Trademark and Other Intangible Assets	Franchise License, The Company follows ASC Topic 350, “Intangibles – Goodwill and Other” (“ASC 350”), which requires that finite-lived intangibles be amortized over their estimated useful life while indefinite-lived intangibles and goodwill are not amortized. Franchise license, trademark, and other finite-lived intangible assets are stated at cost less accumulated amortization, and are amortized on a straight-line basis over the estimated future periods to be benefited ( 10 15
Asset Impairments	Asset Impairments ASC Topic 360, “Property, Plant, and Equipment” (“ASC 360”) and ASC 350 require the Company to periodically review the carrying amounts of its long-lived assets, including property, plant and equipment and certain identifiable intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If the assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of their carrying amount or fair value less estimated costs to sell. The Company has concluded that there was no
Estimates	Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates which are particularly significant to the consolidated financial statements include estimates relating to the determination of impairment of assets, the useful life of property and equipment, recoverability of deferred income tax assets, allowance for doubtful accounts and inventory valuations.
Earnings Per Share	Earnings Per Share Basic earnings per share are computed on the basis of the weighted average number of common shares outstanding during each year. Diluted earnings per share are computed on the basis of the weighted average number of common shares and dilutive securities outstanding during each year. The Company had no
Supplier Concentration	Supplier The Company purchases laundry, drycleaning machines, boilers and other products from a number of manufacturers and suppliers. Two 27 35 15
Advertising Costs	Advertising Costs The Company expenses the cost of advertising as of the first date an advertisement is run. The Company expensed approximately $ 18,400 54,000
Fair Value of Financial Instruments	Fair Value of The Company's financial instruments consist principally of cash and cash equivalents and accounts and trade notes receivable. Due to their relatively short-term nature or variable rates, the carrying amounts of those financial instruments, as reflected in the accompanying consolidated balance sheets, approximate their estimated fair value. Their estimated fair value is not necessarily indicative of the amounts the Company could realize from those assets in a current market exchange or of future earnings or cash flows.
Customer Deposits	Customer Deposits Customer deposits represent advances paid by certain customers when placing orders for equipment with the Company.
Income Taxes	Income Taxes The Company follows ASC Topic 740, “Income Taxes” (“ASC 740”). Significant judgment is required in developing the Company's provision for income taxes, deferred tax assets and liabilities and any valuation allowances that might be required against the deferred tax assets. The Company follows ASC Topic 740-10-25 “Accounting for Uncertainty in Income” which contains a two-step approach to recognizing and measuring uncertain tax positions.
Adopted Accounting Guidance	Adopted Accounting In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers.” The standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of the revenue model is that “an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.” The ASU is effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2017. Early application is not permitted. The Company is currently evaluating the impact, if any, that adopting this standard will have on our consolidated financial statements. Management believes the impact of other issued standards and updates, which are not yet effective, will not have a material impact on the Company's consolidated financial position, results of operations or cash flows upon adoption.

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Jun. 30, 2015
Inventories [Abstract]
Schedule of Inventories	June 30, 2015 2014 Equipment and parts $ 2,868,636 $ 2,885,293 Reserve (59,726 ) (49,073 ) $ 2,808,910 $ 2,836,220

Equipment and Improvements (Tab

Equipment and Improvements (Tables)	12 Months Ended
	Jun. 30, 2015
Equipment and Improvements [Abstract]
Schedule of Major Classes of Equipment and Improvements	June 30, 2015 2014 Furniture and equipment $ 451,069 $ 583,245 Leasehold improvements 434,869 399,179 885,938 982,424 Accumulated depreciation and amortization (697,695 ) (800,795 ) $ 188,243 $ 181,629

Intangible Assets, net (Tables)

Intangible Assets, net (Tables)	12 Months Ended
	Jun. 30, 2015
Intangible Assets, net [Abstract]
Schedule of Franchise License, Trademarks and Other Intangible Assets	Estimated June 30, June 30, Franchise license agreements 10 $ 529,500 $ 529,500 Trademarks, patents and 10 15 230,075 230,075 759,575 759,575 Accumulated amortization (726,093 ) (718,695 ) $ 33,482 $ 40,880
Schedule of Estimated Future Amortization	Based on the carrying amount of intangibles as of June 30, 2015, and assuming no future impairment of the underlying assets, the estimated future amortization at Years ending June 30, 2016 $ 7,017 2017 7,017 2018 6,915 2019 6,468 2020 6,065 Total $ 33,482

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Jun. 30, 2015
Income Taxes [Abstract]
Schedule of Components of Income Taxes	Years ended June 30, 2015 2014 Current Federal $ 878,700 $ 831,695 State 150,416 142,370 1,029,116 974,065 Deferred Federal (15,527 ) 8,843 State (2,658 ) 1,513 (18,185 ) 10,356 $ 1,010,931 $ 984,421
Schedule of Reconciliation of Income Tax Expense Computed at the Federal Statutory Tax Rate of 34% to the Provision for Income Taxes	The reconciliation of income tax expense computed at the Federal statutory tax rate of 34 Years ended June 30, 2015 2014 Tax at the statutory rate $ 912,134 $ 885,607 State income taxes, 97,384 94,551 Other 1,413 4,263 $ 1,010,931 $ 984,421 Effective tax rate 37.7 % 37.8 %
Schedule of Significant Components of the Company's Current and Noncurrent Deferred Tax Assets and Liabilities	Years ended June 30, 2015 2014 Current deferred tax assets: Allowance for doubtful accounts $ 50,425 $ 52,683 Inventory capitalization 36,361 29,627 Inventory reserves 22,475 18,467 109,261 100,777 Noncurrent deferred tax assets (liabilities): Equipment and improvements 16,667 5,685 Franchise, trademarks and other — 1,282 16,667 6,967 Total net deferred income tax assets $ 125,928 $ 107,744

Commitments (Tables)

Commitments (Tables)	12 Months Ended
	Jun. 30, 2015
Commitments [Abstract]
Schedule of Minimum Future Rental Commitments	Years ending June 30, 2016 $ 190,000 2017 194,000 2018 74,400 2019 — 2020 — Total $ 458,400

Segment Information (Tables)

Segment Information (Tables)	12 Months Ended
	Jun. 30, 2015
Segment Information [Abstract]
Schedule of Financial Information for the Company's Business Segments	Financial information for the Company's business segments is as follows Year ended June 30, 2015 2014 Revenues: Commercial and industrial laundry and $ 30,578,038 $ 33,234,641 License and franchise operations 176,532 598,777 Total revenues $ 30,754,570 $ 33,833,418 Operating income (loss): Commercial and industrial laundry and $ 3,015,727 $ 2,613,258 License and franchise operations 47,056 329,069 Corporate (384,338 ) (343,618 ) Total operating income $ 2,678,445 $ 2,598,709 Identifiable assets: Commercial and industrial laundry and $ 8,392,268 $ 13,067,091 License and franchise operations 556,331 576,891 Corporate 334,173 174,105 Total assets $ 9,282,772 $ 13,818,087

Summary of Significant Accoun27

Summary of Significant Accounting Policies (Details) - Finite-Lived Intangible Assets, Major Class Name [Domain] - USD ($) None in scaling factor is -9223372036854775296	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Summary of Significant Accounting Policies [Line Items]
Shipping, delivery and handling fee income	$ 1,052,000	$ 1,069,000
Royalty fees	116,000	169,000
License and initial fees	43,000	415,000
Allowance for doubtful accounts	$ 134,000	$ 140,000
Impairment of long-lived assets
Dilutive securities outstanding
Advertising costs	$ 18,400	$ 54,000
Income tax valuation allowances
Supplier Concentration Risk [Member] | Supplier 1 [Member]
Summary of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage	27.00%	35.00%
Supplier Concentration Risk [Member] | Supplier 2 [Member]
Summary of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage	27.00%	15.00%
Leasehold improvements [Member]
Summary of Significant Accounting Policies [Line Items]
Useful life of property and equipment	the shorter of ten
Minimum [Member]
Summary of Significant Accounting Policies [Line Items]
Leases and mortgages receivable term	1 year
Useful life of finite-lived intangibles	10 years
Minimum [Member] | Furniture and equipment [Member]
Summary of Significant Accounting Policies [Line Items]
Useful life of property and equipment	5 years
Maximum [Member]
Summary of Significant Accounting Policies [Line Items]
Leases and mortgages receivable term	5 years
Useful life of finite-lived intangibles	15 years
Maximum [Member] | Furniture and equipment [Member]
Summary of Significant Accounting Policies [Line Items]
Useful life of property and equipment	7 years

Inventories (Details)

Inventories (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Inventories [Abstract]
Equipment and parts	$ 2,868,636	$ 2,885,293
Reserve	(59,726)	(49,073)
Inventories, net	2,808,910	2,836,220
Inventory written-down	$ 11,600	$ 14,800

Equipment and Improvements (Det

Equipment and Improvements (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Equipment and Improvements [Line Items]
Equipment and improvements, gross	$ 885,938	$ 982,424
Accumulated depreciation and amortization	(697,695)	(800,795)
Equipment and improvements, net	188,243	181,629
Depreciation and amortization of equipment and improvements	51,407	$ 47,551
Wrote off of the fully depreciated equipment	154,507
Furniture and equipment [Member]
Equipment and Improvements [Line Items]
Equipment and improvements, gross	451,069	$ 583,245
Leasehold improvements [Member]
Equipment and Improvements [Line Items]
Equipment and improvements, gross	$ 434,869	$ 399,179

Intangible Assets, net (Schedul

Intangible Assets, net (Schedule of Franchise License, Trademarks and Other Intangible Assets) (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Intangible Assets, net [Line Items]
Intangible Assets, gross	$ 759,575	$ 759,575
Accumulated amortization	(726,093)	(718,695)
Intangible assets, net	33,482	40,880
Amortization expense	$ 7,399	12,319
Minimum [Member]
Intangible Assets, net [Line Items]
Useful Life of Intangible Assets	10 years
Maximum [Member]
Intangible Assets, net [Line Items]
Useful Life of Intangible Assets	15 years
Franchise license agreements [Member]
Intangible Assets, net [Line Items]
Intangible Assets, gross	$ 529,500	529,500
Useful Life of Intangible Assets	10 years
Trademarks, patents and Tradenames [Member]
Intangible Assets, net [Line Items]
Intangible Assets, gross	$ 230,075	$ 230,075
Trademarks, patents and Tradenames [Member] | Minimum [Member]
Intangible Assets, net [Line Items]
Useful Life of Intangible Assets	10 years
Trademarks, patents and Tradenames [Member] | Maximum [Member]
Intangible Assets, net [Line Items]
Useful Life of Intangible Assets	15 years

Intangible Assets, net (Sched31

Intangible Assets, net (Schedule of Estimated Future Amortization) (Details) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Expected amortization expense for the years ending June 30,
2,016	$ 7,017
2,017	7,017
2,018	6,915
2,019	6,468
2,020	6,065
Intangible assets, net	$ 33,482	$ 40,880

Leases and Mortgages Receivab32

Leases and Mortgages Receivable (Details) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Leases and Mortgages Receivable [Abstract]
Future lease payments, net of deferred interest	$ 22,810	$ 26,527
Deferred interest	$ 2,564	$ 4,952

Income Taxes (Schedule of Compo

Income Taxes (Schedule of Components of Income Taxes) (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Current
Federal	$ 878,700	$ 831,695
State	150,416	142,370
Current	1,029,116	974,065
Deferred
Federal	(15,527)	8,843
State	(2,658)	1,513
Deferred	(18,185)	10,356
Total	$ 1,010,931	$ 984,421

Income Taxes (Schedule of Recon

Income Taxes (Schedule of Reconciliation of Income Tax Expense) (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Income Taxes [Abstract]
Federal statutory tax rate	34.00%
Reconciliation of income tax expense computed at the Federal statutory tax rate of 34% to the provision for income taxes
Tax at the statutory rate	$ 912,134	$ 885,607
State income taxes, net of federal benefit	97,384	94,551
Other	1,413	4,263
Total	$ 1,010,931	$ 984,421
Effective tax rate	37.70%	37.80%

Income Taxes (Schedule of Signi

Income Taxes (Schedule of Significant Components of Company's Current and Noncurrent Deferred Tax Assets and Liabilities) (Details) - USD ($)	Jun. 30, 2015	Jun. 30, 2014
Current deferred tax assets:
Allowance for doubtful accounts	$ 50,425	$ 52,683
Inventory capitalization	36,361	29,627
Inventory reserves	22,475	18,467
Current deferred tax assets	109,261	100,777
Noncurrent deferred tax assets (liabilities):
Equipment and improvements	$ 16,667	5,685
Franchise, trademarks and other intangible assets		1,282
Noncurrent deferred tax assets (liabilities)	$ 16,667	6,967
Total net deferred income tax assets	$ 125,928	$ 107,744

Credit Agreement and Term Loan

Credit Agreement and Term Loan (Details) - Jun. 30, 2015 - Revolving credit facility [Member] - USD ($)	Total
Credit Agreement and Term Loan [Line items]
Revolving line of credit facility amount	$ 2,250,000
Basis of variable interest rate	Adjusted Libor Market Index Rate
Spread on variable interest rate basis	2.50%
Expiration date	Nov. 1, 2015

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Related Party Transaction [Line Items]
Annual rent payment, year one	$ 190,000
Annual rent payment, year two	194,000
Annual rent payment, year three	74,400
Rental expense	$ 186,000	$ 177,000
Michael S. Steiner and Robert Steiner [Member]
Related Party Transaction [Line Items]
Original lease term	3 years
Lease start date	Nov. 1, 2014
Annual rent payment, year one	$ 123,300
Annual rent payment, year two	126,960
Annual rent payment, year three	130,800
Rental expense	130,600	126,900
A law firm, in which a director is Senior Counsel [Member]
Related Party Transaction [Line Items]
Legal services	$ 83,500	$ 60,000

Concentrations of Credit Risk (

Concentrations of Credit Risk (Details) - Jun. 30, 2015 - USD ($)	Total
Concentrations of Credit Risk [Line Items]
Bank deposits above FDIC limits	$ 3,400,000
Revenues [Member] | Customer Concentration Risk [Member]
Concentrations of Credit Risk [Line Items]
Concentration risk, additional description	No customers provided more than 10% of fiscal 2015 revenues.

Commitments (Schedule of Minimu

Commitments (Schedule of Minimum Future Rental Commitments) (Details)	Jun. 30, 2015USD ($)
Minimum future rental commitments for the years ending June 30,
2,016	$ 190,000
2,017	194,000
2,018	$ 74,400
2,019
2,020
Total	$ 458,400

Commitments (Narrative) (Detail

Commitments (Narrative) (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Commitments [Abstract]
Rental expense	$ 186,000	$ 177,000

Retirement Plan (Details)

Retirement Plan (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Retirement Plan [Abstract]
Employer matching contribution percentage	3.00%
Period after which employees are eligible to participate in the plan	1 year
Plan contributions	$ 21,900	$ 21,600

Segment Information (Schedule o

Segment Information (Schedule of Financial Information for Company's Business Segments) (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Financial information:
Revenues:	$ 30,754,570	$ 33,833,418
Operating income (loss):	2,678,445	2,598,709
Identifiable assets:	9,282,772	13,818,087
Commercial and industrial laundry and dry cleaning equipment and boilers [Member]
Financial information:
Revenues:	30,578,038	33,234,641
Operating income (loss):	3,015,727	2,613,258
Identifiable assets:	8,392,268	13,067,091
License and franchise operations [Member]
Financial information:
Revenues:	176,532	598,777
Operating income (loss):	47,056	329,069
Identifiable assets:	556,331	576,891
Corporate [Member]
Financial information:
Operating income (loss):	(384,338)	(343,618)
Identifiable assets:	$ 334,173	$ 174,105

Segment Information (Narrative)

Segment Information (Narrative) (Details) - USD ($)	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Segment Information [Line Items]
Revenues:	$ 30,754,570	$ 33,833,418
Commercial and industrial laundry and dry cleaning equipment and boilers [Member]
Segment Information [Line Items]
Revenues:	30,578,038	33,234,641
Caribbean and Latin America [Member]
Segment Information [Line Items]
Revenues:	8,520,000	9,414,000
Caribbean and Latin America [Member] | Commercial and industrial laundry and dry cleaning equipment and boilers [Member]
Segment Information [Line Items]
Revenues:	$ 8,372,000	$ 8,855,000