Napco Security (NSSC) 10-Q 7 May 20 2020 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Mar. 31, 2020	May 05, 2020
Document And Entity Information
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Entity Registrant Name	NAPCO SECURITY TECHNOLOGIES, INC
Entity Central Index Key	0000069633
Current Fiscal Year End Date	--06-30
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Interactive Data Current	Yes
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Trading Symbol	NSSC
Entity Common Stock, Shares Outstanding		18,345,977

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2020	Jun. 30, 2019
CURRENT ASSETS
Cash and cash equivalents	$ 11,040	$ 8,028
Accounts receivable, net of allowance for doubtful accounts of $326 and $88 at March 31, 2020 and June 30, 2019, respectively, and other reserves	23,346	25,970
Inventories	34,615	29,576
Prepaid expenses and other current assets	1,920	1,881
Total Current Assets	70,921	65,455
Inventories - non-current	8,022	5,262
Property, plant and equipment, net	8,105	7,694
Intangible assets, net	7,034	7,232
Operating lease asset (See Note 11)	7,401
Other assets	257	265
TOTAL ASSETS	101,740	85,908
CURRENT LIABILITIES
Accounts payable	5,348	5,135
Accrued expenses	5,849	6,273
Accrued salaries and wages	2,212	2,416
Accrued income taxes	462	548
Total Current Liabilities	13,871	14,372
Deferred income taxes	649	72
Accrued income taxes	292	292
Long term operating lease liabilities (See Note 11)	7,118
Total Liabilities	21,930	14,736
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Common Stock, par value $0.01 per share; 40,000,000 shares authorized; 21,239,692 and 21,227,094 shares issued; and 18,353,079 and 18,477,784 shares outstanding, respectively	212	212
Additional paid-in capital	17,671	17,103
Retained earnings	81,344	70,924
Less: Treasury Stock, at cost (2,886,613 and 2,749,310 shares)	(19,417)	(17,067)
TOTAL STOCKHOLDERS' EQUITY	79,810	71,172
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 101,740	$ 85,908

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Jun. 30, 2019
CONDENSED CONSOLIDATED BALANCE SHEETS
Allowance for Doubtful Accounts Receivable	$ 326	$ 88
Common Stock, Par Value (in dollars per share)	$ 0.01	$ 0.01
Common Stock, shares authorized	40,000,000	40,000,000
Common Stock, shares issued	21,239,692	21,227,094
Common Stock, shares outstanding	18,353,079	18,477,784
Treasury Stock, shares	2,886,613	2,749,310

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Net sales:
Equipment revenues	$ 20,007,000	$ 20,597,000	$ 60,973,000	$ 60,872,000
Service revenues	6,232,000	4,546,000	17,380,000	12,476,000
Total Revenues	26,239,000	25,143,000	78,353,000	73,348,000
Cost of sales:
Equipment related expenses	13,285,000	13,471,000	39,525,000	39,681,000
Service related expenses	998,000	943,000	3,227,000	2,708,000
Cost of sales	14,283,000	14,414,000	42,752,000	42,389,000
Gross Profit	11,956,000	10,729,000	35,601,000	30,959,000
Research and development	1,815,000	1,851,000	5,387,000	5,358,000
Selling, general, and administrative expenses	6,096,000	5,231,000	18,566,000	16,901,000
Operating expenses	7,911,000	7,082,000	23,953,000	22,259,000
Operating Income	4,045,000	3,647,000	11,648,000	8,700,000
Other expense:
Interest expense, net	5,000	5,000	3,000	18,000
Income before Provision for Income Taxes	4,040,000	3,642,000	11,645,000	8,682,000
Provision for Income Taxes	425,000	520,000	1,225,000	1,187,000
Net Income	$ 3,615,000	$ 3,122,000	$ 10,420,000	$ 7,495,000
Income per share:
Basic (in dollars per share)	$ 0.20	$ 0.17	$ 0.56	$ 0.40
Diluted (in dollars per share)	$ 0.20	$ 0.17	$ 0.56	$ 0.40
Weighted average number of shares outstanding:
Basic (per share)	18,472,000	18,489,000	18,476,000	18,607,000
Diluted (per share)	18,516,000	18,533,000	18,530,000	18,654,000

CONSOLIDATED STATEMENT OF STOCK

CONSOLIDATED STATEMENT OF STOCKHOLDERS EQUITY - USD ($)	Common Stock	Additional Paid-in Capital	Treasury Stock	Retained Earnings	Total
BALANCE at Jun. 30, 2018	$ 212,000	$ 16,890,000	$ (13,069,000)	$ 59,420,000	$ 63,453,000
BALANCE (in shares) at Jun. 30, 2018	21,204,327		(2,475,245)
Net income	$ 0	0	$ 0	1,504,000	1,504,000
Implementation of ASC606 (see Note 2)	0	0	0	(719,000)	(719,000)
Repurchase of Treasury Shares	$ 0	0	$ (549,000)	0	(549,000)
Repurchase of Treasury Shares (in shares)	0		(39,163)
Stock Options Exercised	$ 0	15,000	$ 0	0	15,000
Stock Options Exercised (in shares)	2,500		0
Stock-based compensation expense	$ 0	5,000	$ 0	0	5,000
BALANCE at Sep. 30, 2018	$ 212,000	16,910,000	$ (13,618,000)	60,205,000	63,709,000
BALANCE (in shares) at Sep. 30, 2018	21,206,827		(2,514,408)
BALANCE at Jun. 30, 2018	$ 212,000	16,890,000	$ (13,069,000)	59,420,000	63,453,000
BALANCE (in shares) at Jun. 30, 2018	21,204,327		(2,475,245)
Net income					7,495,000
BALANCE at Mar. 31, 2019	$ 212,000	17,066,000	$ (17,067,000)	66,196,000	66,407,000
BALANCE (in shares) at Mar. 31, 2019	21,224,189		(2,749,310)
BALANCE at Sep. 30, 2018	$ 212,000	16,910,000	$ (13,618,000)	60,205,000	63,709,000
BALANCE (in shares) at Sep. 30, 2018	21,206,827		(2,514,408)
Net income	$ 0	0	$ 0	2,869,000	2,869,000
Repurchase of Treasury Shares	0	0	$ (2,089,000)	0	(2,089,000)
Repurchase of Treasury Shares (in shares)			(147,230)
Stock Options Exercised	$ 0	9,000	$ 0	0	9,000
Stock Options Exercised (in shares)	12,515		0
Stock-based compensation expense	$ 0	147,000	$ 0	0	147,000
BALANCE at Dec. 31, 2018	$ 212,000	17,066,000	$ (15,707,000)	63,074,000	64,645,000
BALANCE (in shares) at Dec. 31, 2018	21,219,342		(2,661,638)
Net income	$ 0	0	$ 0	3,122,000	3,122,000
Repurchase of Treasury Shares	$ 0	0	$ (1,360,000)	0	(1,360,000)
Repurchase of Treasury Shares (in shares)			(87,672)
Stock-based compensation expense (in shares)	4,847
Stock-based compensation expense	$ 0	0	$ 0	0	0
BALANCE at Mar. 31, 2019	$ 212,000	17,066,000	$ (17,067,000)	66,196,000	66,407,000
BALANCE (in shares) at Mar. 31, 2019	21,224,189		(2,749,310)
BALANCE at Jun. 30, 2019	$ 212,000	17,103,000	$ (17,067,000)	70,924,000	71,172,000
BALANCE (in shares) at Jun. 30, 2019	21,227,094		(2,749,310)
Net income	$ 0	0	$ 0	3,233,000	3,233,000
Stock-based compensation expense	0	17,000	0	0	17,000
BALANCE at Sep. 30, 2019	$ 212,000	17,120,000	$ (17,067,000)	74,157,000	74,422,000
BALANCE (in shares) at Sep. 30, 2019	21,227,094		(2,749,310)
BALANCE at Jun. 30, 2019	$ 212,000	17,103,000	$ (17,067,000)	70,924,000	71,172,000
BALANCE (in shares) at Jun. 30, 2019	21,227,094		(2,749,310)
Net income					10,420,000
Repurchase of Treasury Shares (in shares)			137,303
BALANCE at Mar. 31, 2020	$ 212,000	17,671,000	$ (19,417,000)	81,344,000	79,810,000
BALANCE (in shares) at Mar. 31, 2020	21,239,692		2,886,613
BALANCE at Sep. 30, 2019	$ 212,000	17,120,000	$ (17,067,000)	74,157,000	74,422,000
BALANCE (in shares) at Sep. 30, 2019	21,227,094		(2,749,310)
Net income	$ 0	0	$ 0	3,572,000	3,572,000
Stock-based compensation expense	0	308,000	0	0	308,000
BALANCE at Dec. 31, 2019	$ 212,000	17,428,000	$ (17,067,000)	77,729,000	78,302,000
BALANCE (in shares) at Dec. 31, 2019	21,227,094		(2,749,310)
Net income	$ 0	0	$ 0	3,615,000	3,615,000
Repurchase of Treasury Shares	0	0	$ (2,350,000)	0	(2,350,000)
Repurchase of Treasury Shares (in shares)			137,303
Stock Options Exercised	$ 0	71,000	$ 0	0	71,000
Stock Options Exercised (in shares)	12,598		0
Stock-based compensation expense	$ 0	172,000	$ 0	0	172,000
BALANCE at Mar. 31, 2020	$ 212,000	$ 17,671,000	$ (19,417,000)	$ 81,344,000	$ 79,810,000
BALANCE (in shares) at Mar. 31, 2020	21,239,692		2,886,613

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 10,420,000	$ 7,495,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,118,000	1,032,000
Provision for doubtful acccounts	238,000	3,000
Deferred income taxes	577,000	673,000
Stock based compensation expense	497,000	152,000
Changes in operating assets and liabilities:
Accounts receivable	2,386,000	2,131,000
Inventories	(7,799,000)	(5,999,000)
Prepaid expenses and other current assets	(39,000)	307,000
Other assets	0	(11,000)
Accounts payable, accrued expenses, accrued salaries and wages, accrued income taxes	(784,000)	(20,000)
Net Cash Provided by Operating Activities	6,614,000	5,763,000
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant, and equipment	(1,323,000)	(1,598,000)
Net Cash Used in Investing Activities	(1,323,000)	(1,598,000)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from stock option exercises	71,000	24,000
Cash paid for purchase of treasury stock	(2,350,000)	(3,998,000)
Net Cash Used in Financing Activities	(2,279,000)	(3,974,000)
Net Change in Cash and Cash Equivalents	3,012,000	191,000
CASH AND CASH EQUIVALENTS - Beginning	8,028,000	5,308,000
CASH AND CASH EQUIVALENTS - Ending	11,040,000	5,499,000
SUPPLEMENTAL CASH FLOW INFORMATION
Interest paid, net	24,000	18,000
Income taxes paid	735,000	258,000
Surrender of Common Shares	$ 0	$ 8,000

Nature of Business and Summary

Nature of Business and Summary of Significant Accounting Policies	9 Months Ended
	Mar. 31, 2020
Nature of Business and Summary of Significant Accounting Policies
Nature of Business and Summary of Significant Accounting Policies	NOTE 1 - Nature of Business and Summary of Significant Accounting Policies Nature of Business : Napco Security Technologies, Inc. and Subsidiaries (the "Company") is a diversified manufacturer of security products, encompassing access control systems, door-locking products, intrusion and fire alarm systems and video surveillance products for commercial and residential use. The Company also provides wireless communication service for intrusion and fire alarm systems. These products are used for commercial, residential, institutional, industrial and governmental applications, and are sold worldwide principally to independent distributors, dealers and installers of security equipment. The Company’s fiscal year begins on July 1 and ends on June 30. Historically, the end users of the Company's products want to install its products prior to the summer; therefore sales of its products historically peak in the period April 1 through June 30, the Company’s fiscal fourth quarter, and are reduced in the period July 1 through September 30, the Company’s fiscal first quarter. In addition, demand is affected by the housing and construction markets. Significant Accounting Policies : Principles of Consolidation The unaudited condensed consolidated financial statements of the Company, including these notes, have been prepared by the Company in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the rules and regulations promulgated by the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been omitted or condensed. However, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended June 30, 2019 and the notes thereto included in the Company’s Annual Report on Form 10‑K filed with the SEC on September 13, 2019. Results of consolidated operations for the interim periods are not necessarily indicative of a full year’s operating results. The unaudited condensed consolidated financial statements include the accounts of Napco Security Technologies, Inc. and all of its wholly-owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation. Accounting Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent gains and losses at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Critical estimates include management’s judgments associated with reserves for sales returns and allowances, allowance for doubtful accounts, inventory reserves, intangible assets and income taxes. Actual results could differ from those estimates. Fair Value of Financial Instruments The methods and assumptions used to estimate the fair value of the following classes of financial instruments were: Current Assets and Current Liabilities - The carrying amount of cash and cash equivalents, certificates of deposits, current receivables and payables and certain other short-term financial instruments approximate their fair value as of March 31, 2020 and June 30, 2019 due to their short-term maturities. Cash and Cash Equivalents Cash and cash equivalents include approximately $460,000 of short-term time deposits at March 31, 2020 and June 30, 2019. The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company has cash balances in banks in excess of the maximum amount insured by the Federal Deposit Insurance Corporation ("FDIC") and other international agencies as of March 31, 2020 and June 30, 2019. The Company has not historically experienced any credit losses with balances in excess of FDIC limits. Accounts Receivable Accounts receivable is stated net of the allowances for doubtful accounts of $326,000 as of March 31, 2020 and $88,000 at June 30, 2019. Our allowances for doubtful accounts are subjective critical estimates that have a direct impact on reported net income. These allowances are based upon the evaluation of our accounts receivable aging, specific exposures, sales levels and historical trends. Inventories Inventories are valued at the lower of cost or net realizable value, with cost being determined on the first-in, first-out ("FIFO") method. The reported net value of inventory includes finished saleable products, work-in-process and raw materials that will be sold or used in future periods. Inventory costs include raw materials, direct labor and overhead. The Company’s overhead expenses are applied based, in part, upon estimates of the proportion of those expenses that are related to procuring and storing raw materials as compared to the manufacture and assembly of finished products. These proportions, the method of their application, and the resulting overhead included in ending inventory, are based in part on subjective estimates and actual results could differ from those estimates. In addition, the Company records an inventory obsolescence reserve, which represents any excess of the cost of the inventory over its estimated realizable value, based on various product sales projections. This reserve is calculated using an estimated obsolescence percentage applied to the inventory based on age, historical trends, requirements to support forecasted sales, and the ability to find alternate applications of its raw materials and to convert finished product into alternate versions of the same product to better match customer demand. In addition, and as necessary, the Company may establish specific reserves for future known or anticipated events. There is inherent professional judgment and subjectivity made by both production and engineering members of management in determining the estimated obsolescence percentage. The Company also regularly reviews the period over which its inventories will be converted to sales. Any inventories expected to convert to sales beyond 12 months from the balance sheet date are classified as non-current. Property, Plant, and Equipment Property, plant, and equipment are carried at cost less accumulated depreciation. Expenditures for maintenance and repairs are charged to expense as incurred; costs of major renewals and improvements are capitalized. At the time property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are eliminated from the asset and accumulated depreciation accounts and the profit or loss on such disposition is reflected in income. Depreciation is recorded over the estimated service lives of the related assets using primarily the straight-line method. Amortization of leasehold improvements is calculated by using the straight-line method over the estimated useful life of the asset or lease term, whichever is shorter. Intangible Assets Intangible assets with definite lives are amortized over their useful lives. Indefinite-lived intangible assets are reviewed for impairment at least annually at the Company’s fiscal year end of June 30 or more often whenever there is an indication that the carrying amount may not be recovered. The Company’s acquisition of substantially all of the assets and certain liabilities of G. Marks Hardware, Inc. (“Marks”) in August 2008 included intangible assets recorded at fair value on the date of acquisition. The customer relationships are amortized over their estimated useful lives of twenty years. The Marks trade name was deemed to have an indefinite life. Changes in intangible assets are as follows (in thousands): March 31, 2020 June 30, 2019 Accumulated Net book Accumulated Net book Cost amortization value Cost amortization value Customer relationships $ 9,800 $ (8,666) $ 1,134 $ 9,800 $ (8,468) $ 1,332 Trade name 5,900 — 5,900 5,900 — 5,900 $ 15,700 $ (8,666) $ 7,034 $ 15,700 $ (8,468) $ 7,232 Amortization expense for intangible assets subject to amortization was approximately $66,000 and $78,000 for the three months ended March 31, 2020 and 2019, respectively. Amortization expense for intangible assets subject to amortization was approximately $198,000 and $235,000 for the nine months ended March 31, 2020 and 2019, respectively. Amortization expense for each of the next five fiscal years is estimated to be as follows: 2020 -$264,000; 2021 - $223,000; 2022 - $188,000; 2023 - $159,000 and 2024 - $134,000. The remaining weighted average amortization period for intangible assets was 8.4 years and 9.4 years at March 31, 2020 and 2019, respectively. During the nine months ended March 31, 2020, the Company experienced a decline in revenues related to the Trade Name intangible asset compared to the nine months ended March 31, 2019. Management considered whether the decline in revenues and loss from continuing operations related to this intangible asset during the three and nine months ended March 31, 2020 constituted a triggering event requiring the assessment of the Trade Name for impairment. It was determined that such decline in revenues did constitute a triggering event. Management performed a preliminary impairment analysis, developing a fair value of the Trade Name as of March 31, 2020, utilizing estimates and assumptions related to future revenue growth, discount rates, and royalty rates and determined that no impairment was necessary to be recorded. Based on the Company’s seasonal sales cycle, management believes that it is too early to assess if the unfavorable conditions are short-term in nature that will be recovered in the future. The fourth quarter of the fiscal year is typically the Company’s strongest quarter for revenue and gross margin generated from the Trade Name. As a result, management will continue to evaluate its forward projections, on-going operations and growth initiatives in light of the current economic conditions, which re-evaluation is scheduled to be completed in the fourth quarter in connection with the annual impairment test. The continuing adverse economic conditions in the U.S. may reduce revenues and gross margins associated with the Company’s intangible assets and result in a reduction of future expected cash flows. If declines occur, they would likely affect the discount and royalty rates used in the annual impairment analysis of the Trade Name. If any impairment is identified, the related adjustment to identifiable intangible assets will be recorded against the operations of the period in which such identification is made and may be material. Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets in question may not be recoverable. Impairment would be recorded in circumstances where undiscounted cash flows expected to be generated by an asset are less than the carrying value of that asset. Leases Effective July 1, 2019, in accordance with Accounting Standards Codification ("ASC"), Topic 842, Leases at the inception of a contract, we assess whether the contract is, or contains, a lease. The assessment is based on (1) whether the contract involves the use of a distinct identified asset, (2) whether the Company obtains the right to substantially all the economic benefit from the use of the asset throughout the period, and (3) whether the Company has the right to direct the use of the asset. All significant lease arrangements are generally recognized at lease commencement. Operating lease right-of-use (“ROU”) assets and lease liabilities are recognized at commencement. An ROU asset and corresponding lease liability are not recorded for leases with an initial term of 12 months or less (short term leases) and we recognize lease expense for these leases as incurred over the lease term. ROU assets represent our right to use an underlying asset during the reasonably certain lease term and lease liabilities represent our obligation to make lease payments arising from the lease. We primarily use our incremental borrowing rate based on information available at the lease commencement date, in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Lease payments may be fixed or variable, however, only fixed payments or in-substance fixed payments are included in determining the lease liability. See Note 11 - Commitments for additional accounting policies and transition disclosures. Revenue Recognition The Company recognizes revenue when its customers obtain control of its products or services, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods and services. See Note 2 – Revenue Recognition for additional accounting policies and transition disclosures. Advertising and Promotional Costs Advertising and promotional costs are included in "Selling, General and Administrative" expenses in the consolidated statements of income and are expensed as incurred. Advertising expense for the three months ended March 31, 2020 and 2019 was $307,000 and $190,000, respectively. Advertising expense for the nine months ended March 31, 2020 and 2019 was $1,448,000 and $1,278,000, respectively. Research and Development Costs Research and development costs incurred by the Company are charged to expense as incurred and are included in operating expenses in the consolidated statements of income. Company-sponsored research and development expense for the three months ended March 31, 2020 and 2019 was $1,816,000 and $1,851,000, respectively. Company-sponsored research and development expense for the nine months ended March 31, 2020 and 2019 was $5,387,000 and $5,358,000, respectively. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company measures and recognizes the tax implications of positions taken or expected to be taken in its tax returns on an ongoing basis. Net Income per Share Basic net income per common share ("Basic EPS") is computed by dividing net income by the weighted average number of common shares outstanding. Diluted net income per common share ("Diluted EPS") is computed by dividing net income by the weighted average number of common shares and dilutive common share equivalents and convertible securities then outstanding. The following provides a reconciliation of information used in calculating the per share amounts for the three months ended December 31 (in thousands, except per share data): Net Income Weighted Average Shares Net Income per Share 2020 2019 2020 2019 2020 2019 Basic EPS $ 3,615 $ 3,122 18,472 18,489 $ 0.20 $ 0.17 Effect of Dilutive Securities: Stock Options — — 44 44 — — Diluted EPS $ 3,615 $ 3,122 18,516 18,533 $ 0.20 $ 0.17 Options to purchase 44,000 and 0 shares of common stock were excluded for the three months ended March 31, 2020 and 2019, respectively were not included in the computation of Diluted EPS because their inclusion would be anti-dilutive. These options were still outstanding at the end of the respective periods. The following provides a reconciliation of information used in calculating the per share amounts for the nine months ended March 31 (in thousands, except per share data): Net Income Weighted Average Shares Net Income per Share 2020 2019 2020 2019 2020 2019 Basic EPS $ 10,420 $ 7,495 18,476 18,607 $ 0.56 $ 0.40 Effect of Dilutive Securities: Stock Options — — 54 47 — — Diluted EPS $ 10,420 $ 7,495 18,530 18,654 $ 0.56 $ 0.40 Options to purchase 27,000 and 3,942 shares of common stock were excluded for the nine months ended March 31, 2020 and 2019, respectively were not included in the computation of Diluted EPS because their inclusion would be anti-dilutive. These options were still outstanding at the end of the respective periods. Stock-Based Compensation The Company has established three share incentive programs as discussed in Note 8. Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense on a straight-line basis over the vesting period. Determining the fair value of share-based awards at the grant date requires assumptions and judgments about expected volatility and forfeiture rates, among other factors. Stock-based compensation costs of $172,000 and $0 were recognized for the three months ended March 31, 2020 and 2019, respectively. Stock-based compensation costs of $497,000 and $152,000 were recognized for the nine months ended March 31, 2020 and 2019, respectively. Foreign Currency The Company has determined the functional currency of all foreign subsidiaries is the U.S Dollar. All foreign operations are considered a direct and integral part or extension of the Company’s operations. The day-to-day operations of all foreign subsidiaries are dependent on the economic environment of the U.S Dollar. Therefore, no realized or unrealized gains and losses associated with foreign currency translation are recorded for the nine months ended March 31, 2020 or 2019. Comprehensive Income For the nine months ended March 31, 2020 and 2019, the Company’s operations did not give rise to material items includable in comprehensive income, which were not already included in net income. Accordingly, the Company’s comprehensive income approximates its net income for all periods presented. Segment Reporting The Company’s reportable operating segments are determined based on the Company’s management approach. The management approach is based on the way that the chief operating decision maker organizes the segments within an enterprise for making operating decisions and assessing performance. The Company’s results of operations are reviewed by the chief operating decision maker on a consolidated basis and the Company operates in only one segment. The Company has presented required geographical data in Note 12. Shipping and Handling Revenues and Costs The Company records the amount billed to customers for shipping and handling in net sales ($135,000 and $109,000 in the three months ended March 31, 2020 and 2019, respectively and $355,000 and $313,000 in the nine months ended March 31, 2020 and 2019, respectively) and classifies the costs associated with these revenues in cost of sales ($300,000 and $280,000 in the three months ended March 31, 2020 and 2019, respectively and $831,000 and $827,000 in the nine months ended March 31, 2020 and 2019, respectively). Recently Issued and Adopted Accounting Standards On July 1, 2019, we adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02), as amended, which supersedes the lease accounting guidance under Topic 840, and generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. We adopted the new guidance using the modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application and not restating comparative periods. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases. For information regarding the impact of Topic 842 adoption, see Significant Accounting Policies - Leases and Note 11— Leases.

Revenue Recognition and Contrac

Revenue Recognition and Contracts with Customers	9 Months Ended
	Mar. 31, 2020
Revenue Recognition and Contracts with Customers
Revenue Recognition and Contracts with Customers	NOTE 2 – Revenue Recognition and Contracts with Customers On July 1, 2018, the Company adopted new guidance on revenue from contracts with customers using the modified retrospective method applied to contracts that were not completed as of July 1, 2018. Results for reporting periods beginning after July 1, 2018 are presented under the new guidance, while prior period amounts are not adjusted and continue to be reported in accordance with previous guidance. The Company recorded a net decrease to opening retained earnings of approximately $719,000 (net of tax benefit of $191,000) as of July 1, 2018, for the cumulative impact of adopting the new guidance. The impact primarily related to the change in the recognition and measurement of certain types of variable consideration, which resulted in the increase in sales allowance reserves (i.e. refund liabilities) by a net of $1,627,000 and increased other assets (i.e. return related assets) by approximately $716,000. As of March 31, 2020, the Company included return-related assets of approximately $890,000 in other current assets. Also, due to the adoption of the new standard, the Company classified certain reserves in respect of refund liabilities that were previously presented as a reduction from receivables, to current liabilities amounting to approximately $3,714,000 as of March 31, 2020. Further, amounts related to promotion payments to customers are now classified as a reduction of sales. Net Sales The Company is engaged in one major line of business: the development, manufacture, and distribution of security products, encompassing access control systems, door security products, intrusion and fire alarm systems, alarm communication services, and video surveillance products for commercial and residential use. The Company also provides wireless communication service for intrusion and fire alarm systems on a monthly basis. These products are used for commercial, residential, institutional, industrial and governmental applications, and are sold worldwide principally to independent distributors, dealers and installers of security equipment. Sales to unaffiliated customers are primarily shipped from the United States. The Company has customers worldwide with major concentrations in North America. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. For product sales the Company typically transfers control at a point in time upon shipment or delivery of the product. For monthly communication services the Company satisfies its performance obligation as the services are rendered and therefore recognizes revenue over the monthly period. Typically timing of revenue recognition coincides with the timing of invoicing to the customers, at which time the Company has an unconditional right to consideration. As such, the Company typically records a receivable when revenue is recognized. The contract with the customer states the final terms of the sale, including the description, quantity, and price of each product purchased. Payment for product sales is typically due within 30 and 180 days of the delivery date. Payment for monthly communication services is billed on a monthly basis and is typically due at the beginning of the month of service. The Company provides limited standard warranty for defective products, usually for a period of 24 to 36 months. The Company accepts returns for such defective products as well as for other limited circumstances. The Company also provides rebates to customers for meeting specified purchasing targets and other coupons or credits in limited circumstances. The Company establishes reserves for the estimated returns, rebates and credits and measures such variable consideration based on the expected value method using an analysis of historical data. Changes to the estimated variable consideration in subsequent periods are not material. The Company analyzes sales returns and is able to make reasonable and reliable estimates of product returns based on the Company’s past history. Estimates for sales returns are based on several factors including actual returns and based on expected return data communicated to it by its customers. Accordingly, the Company believes that its historical returns analysis is an accurate basis for its allowance for sales returns. Actual results could differ from those estimates. As a percentage of gross sales, sales returns, rebates and allowances were 9% and 8% for the three months ended March 31, 2020 and 2019, respectively. As a percentage of gross sales, sales returns, rebates and allowances were 9% and 7% for the nine months ended March 31, 2020 and 2019, respectively. In accordance with ASC 606‑10‑50, the Company disaggregates revenue from contracts with customers into major product lines. The Company determines that disaggregating revenue into these categories achieves the disclosure objective to depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. As noted in the accounting policy footnote, the Company’s business consists of one operating segment. Following is the disaggregation of revenues based on major product lines (in thousands): Three months ended March 31, Nine months ended March 31, 2020 2019 2020 2019 Major Product Lines: Intrusion and access alarm products $ 8,409 $ 8,113 $ 24,163 $ 22,928 Door locking devices 11,598 12,484 36,810 37,944 Services 6,232 4,546 17,380 12,476 Total Revenues $ 26,239 $ 25,143 $ 78,353 $ 73,348

Business and Credit Concentrati

Business and Credit Concentrations	9 Months Ended
	Mar. 31, 2020
Business and Credit Concentrations
Business and Credit Concentrations	NOTE 3 - Business and Credit Concentrations An entity is more vulnerable to concentrations of credit risk if it is exposed to risk of loss greater than it would have had if it mitigated its risk through diversification of customers. Such risks of loss manifest themselves differently, depending on the nature of the concentration, and vary in significance. The Company had one customer with an accounts receivable balance that comprised 24% and 19% of the Company’s accounts receivable at March 31, 2020 and June 30, 2019, respectively. Sales to this customer comprised 12% and 14% of net sales in the three months ended March 31, 2020 and 2019, respectively. Sales to this customer comprised 11% and 12% of net sales in the nine months ended March 31, 2020 and 2019, respectively. The Company had another customer with an accounts receivable balance that comprised 13% of the Company’s accounts receivable balance at March 31, 2020. The customer’s accounts receivable balance did not exceed 10% at June 30, 2019. Sales to this customer comprised 12% of net sales during the three months ended March 31, 2020. Sales to this customer did not exceed 10% of net sales in either the three months ended March 31, 2019 or the nine months ended March 31, 2020 and 2019.

Inventories

Inventories	9 Months Ended
	Mar. 31, 2020
Inventories
Inventories	NOTE 4 - Inventories Inventories, net of reserves are valued at lower of cost (first-in, first-out method) or net realizable value. The Company regularly reviews parts and finished goods inventories on hand and, when necessary, records a provision for excess or obsolete inventories. The Company also regularly reviews the period over which its inventories will be converted to sales. Any inventories expected to convert to sales beyond 12 months from the balance sheet date are classified as non-current. Inventories, net of reserves consist of the following (in thousands): March 31, June 30, 2020 2019 Component parts $ 26,366 $ 21,543 Work-in-process 6,581 5,377 Finished products 9,690 7,918 $ 42,637 $ 34,838 Classification of inventories, net of reserves (in thousands): Current $ 34,615 $ 29,576 Non-current 8,022 5,262 $ 42,637 $ 34,838

Property, Plant and Equipment

Property, Plant and Equipment	9 Months Ended
	Mar. 31, 2020
Property, Plant and Equipment
Property, Plant and Equipment	NOTE 5 – Property, Plant and Equipment Property, plant and equipment consist of the following (in thousands): March 31, June 30, 2020 2019 Useful Life in Years Land $ 904 $ 904 — Buildings 8,911 8,911 30 to 40 Molds and dies 7,337 7,333 3 to 5 Furniture and fixtures 2,789 2,691 5 to 10 Machinery and equipment 24,588 23,915 7 to 10 Leasehold improvements 2,173 1,625 Shorter of the lease term or life of asset 46,702 45,379 Less: accumulated depreciation and amortization (38,597) (37,685) $ 8,105 $ 7,694 Depreciation and amortization expense on property, plant, and equipment was approximately $306,000 and $281,000 for the three months ended March 31, 2020 and 2019, respectively. Depreciation and amortization expense on property, plant, and equipment was approximately $912,000 and $787,000 for the nine months ended March 31, 2020 and 2019, respectively.

Income Taxes

Income Taxes	9 Months Ended
	Mar. 31, 2020
Income Taxes
Income Taxes	NOTE 6 - Income Taxes The provision for income taxes represents Federal, foreign, and state and local income taxes. The effective rate differs from statutory rates due to the effect of state and local income taxes, tax rates in foreign jurisdictions, global intangible low-taxed income (“GILTI”), tax benefit of R&D credits and certain nondeductible expenses. Our effective tax rate will change from quarter to quarter based on recurring and non-recurring factors including, but not limited to, the geographical mix of earnings, enacted tax legislation, and state and local income taxes. In addition, changes in judgment from the evaluation of new information resulting in the recognition de-recognition or re-measurement of a tax position taken in a prior annual period is recognized separately in the quarter of the change. On December 22, 2017, the U.S. government passed the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act is comprehensive tax legislation effective January 1, 2018 that implements complex changes to the U.S. tax code including, but not limited to, the reduction of the corporate tax rate from 35% to 21% and includes provisions to tax GILTI. We were subject to the GILTI provisions effective for the fiscal year ended June 30, 2019. The Tax Act also imposed a one-time transition tax on its unremitted foreign earnings. ASC 740 requires filers to record the effects of tax law changes in the period enacted. However, the SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”), that permits filers to record provisional amounts during a measurement period ending no later than one year from the date of the Act’s enactment. As of March 31, 2019, the Company finalized its accounting for the income tax effects of the Tax Act and no additional expense was recorded since the final transition tax expense was equal to the $381,000 provisional expense reported in the fiscal year ended June 30, 2018. The net section 965 tax liability was $442,000 which is payable over 8 years. For the nine months ended March 31, 2020, the Company recognized a net income tax expense of $1,225,000. During the nine months ended March 31, 2020, the Company increased its reserve for uncertain income tax positions by $45,000. The Company’s practice is to recognize interest and penalties related to income tax matters in income tax expense and accrued income taxes. As of March 31, 2020, the Company had accrued interest totaling $0 as well as $171,000 of unrecognized net tax benefits that, if recognized, would favorably affect the Company’s effective income tax rate in any future period. The Company claims R&D tax credits on eligible development R&D expenditures. The R&D tax credits are recognized as a reduction to income tax expense. The Company does not expect that our unrecognized tax benefits will significantly change within the next twelve months. We file a consolidated U.S. income tax return and tax returns in certain state and local and foreign jurisdictions. As of March 31, 2020, we remain subject to examination in all tax jurisdictions for all relevant jurisdictional statutes for fiscal years 2016 and thereafter. In January 2020, the Company received a letter from the IRS (“IRS”) notifying it that the IRS would be examining the Company’s income tax return for fiscal year ended June 30, 2017. Management believes that its provision for income taxes for this period is adequate. However, the outcome cannot be predicted with certainty. In July 2019, the Company received a Form 4549-A, Income Tax Examination Changes (“IRS Notice”) from the IRS proposing an adjustment to income for the fiscal 2016 tax year regarding deemed dividends based on its interpretation under Internal Revenue Code (“IRC”) Section 956 arising from the intercompany balances on the books of the Company. The incremental tax liability associated with the income adjustment proposed in the IRS Notice would be approximately $1.8 million, excluding any interest and penalties. The Company filed a protest with the IRS in August 2019. The Company believes that the position of the IRS with regard to this matter is inconsistent with the provisions of the IRC Section 956 and management believes that the Company will prevail, and that the tax originally paid in fiscal 2016 is correct, as such no additional reserve for this tax uncertainty has been recognized. However, there can be no assurance that this matter will ultimately be resolved in the Company's favor. The Company has identified its U.S. Federal income tax return and its State return in New York as its major tax jurisdictions.

Long-Term Debt

Long-Term Debt	9 Months Ended
	Mar. 31, 2020
Long-Term Debt
Long-Term Debt	NOTE 7 - Long-Term Debt As of March 31, 2020, the Company’s primary source of outside financing consisted of a revolving line of credit of $11,000,000 (“Agreement”), which expires in June 2021. There were no outstanding borrowings under the revolving line of credit at March 31, 2020 or June 30, 2019. The Agreement also provides for an interest rate option of London Interbank Offered Rate ("LIBOR") plus 1.15% to 2.00%, depending on the ratio of outstanding debt to earnings before interest, taxes, depreciation and amortization ("EBITDA"), which is to be measured and adjusted quarterly, a prime rate-based option of the prime rate plus 0.25% and other terms and conditions as more fully described in the Agreement. In addition, the Agreement provides for availability to be limited to the lesser of $11,000,000 or the result of a borrowing base formula based upon the Company’s Accounts Receivables and Inventory values net of certain deductions. The Company’s obligations under the Agreement continue to be secured by all of its assets, including but not limited to, deposit accounts, accounts receivable, inventory, and the Company’s corporate headquarters in Amityville, NY, equipment and fixtures and intangible assets. In addition, the Company’s wholly-owned subsidiaries, with the exception of the Company’s foreign subsidiaries, have issued guarantees and pledges of all of their assets to secure the Company’s obligations under the Agreement. All of the outstanding common stock of the Company’s domestic subsidiaries and 65% of the common stock of the Company’s foreign subsidiaries has been pledged to secure the Company’s obligations under the Agreement. The Agreement contains various restrictions and covenants including, among others, restrictions on payment of dividends, restrictions on borrowings and compliance with certain financial ratios, as defined in the Agreement.

Stock Options

Stock Options	9 Months Ended
	Mar. 31, 2020
Stock Options
Stock Options	NOTE 8 - Stock Options The Company follows ASC Topic 718, "Compensation-Stock Compensation", which requires that all share based payments to employees, including stock options, be recognized as compensation expense in the consolidated financial statements based on their fair values and over the requisite service period. The Company recorded non-cash compensation expense relating to stock-based compensation of $172,000 and $0 for the three months ended March 31, 2020 and 2019, respectively ($0.02 and $0.00 per basic and diluted share for each period, respectively) and $497,000 and $152,000 for the nine months ended March 31, 2020 and 2019, respectively ($0.04 and $0.01 per basic and diluted share for each period, respectively). 2012 Employee Stock Option Plan In December 2012, the stockholders approved the 2012 Employee Stock Option Plan (" 2012 Employee Plan"). The 2012 Employee Plan authorizes the granting of awards, the exercise of which would allow up to an aggregate of 950,000 shares of the Company’s common stock to be acquired by the holders of such awards. Under this plan, the Company may grant stock options, which are intended to qualify as incentive stock options ("ISOs"), to valued employees. Any plan participant who is granted ISOs and possesses more than 10% of the voting rights of the Company’s outstanding common stock must be granted an option with a price of at least 110% of the fair market value on the date of grant. Under the 2012 Employee Plan, stock options may be granted to valued employees with a term of up to 10 years at an exercise price equal to or greater than the fair market value on the date of grant and are exercisable, in whole or in part, at 20% per year beginning on the date of grant. An option granted under this plan shall vest in full upon a “change in control” as defined in the plan. At March 31, 2020, 99,400 stock options were outstanding, 36,900 stock options were exercisable and 751,900 stock options were available for grant under this plan. The fair value of each option granted during the nine months ended March 31 was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: 2020 2019 Risk-free interest rates 1.30% - 2.10 % 3.10 % Expected lives 10 years 10 years Expected volatility 44% - 46 % 52 % Expected dividend yields 0 % 0 % The following table reflects activity under the 2012 Employee Plan for the nine months ended March 31,: 2020 2019 Weighted average Weighted average Options exercise price Options exercise price Outstanding, beginning of year 72,500 $ 11.01 57,200 $ 7.09 Granted 41,000 27.76 24,000 15.28 Exercised (14,100) 7.57 (13,200) 6.43 Outstanding, end of period 99,400 $ 18.41 68,000 $ 10.11 Exercisable, end of period 36,900 $ 13.27 33,000 $ 7.84 Weighted average fair value at grant date of options granted $ 15.28 $ 8.76 Total intrinsic value of options exercised $ 255,000 $ 150,000 Total intrinsic value of options outstanding $ 241,000 $ 723,000 Total intrinsic value of options exercisable $ 172,000 $ 430,000 14,100 and 3,700 stock options were exercised during the three months ended March 31, 2020 and 2019, respectively. $71,000 and $3,000 of cash was received from option exercises during the three months ended March 31, 2020 and 2019, respectively, and the actual tax benefit realized for the tax deductions from option exercises was $8,000 and $3,000, respectively. 14,100 and 13,200 stock options were exercised during the nine months ended March 31, 2020 and 2019, respectively. $71,000 and $27,000 of cash was received from option exercises during the nine months ended March 31, 2020 and 2019, respectively, and the actual tax benefit realized for the tax deductions from option exercises was $8,000 and $7,000, respectively. The following table summarizes information about stock options outstanding under the 2012 Employee Plan at March 31, 2020: Options outstanding Options exercisable Weighted average Number remaining Weighted average Number Weighted average Range of exercise prices outstanding contractual life exercise price exercisable exercise price $4.37‑$33.59 99,400 8.2 $ 18.41 36,900 $ 13.27 99,400 8.2 $ 18.41 36,900 $ 13.27 As of March 31, 2020, there was $646,000 of unearned stock-based compensation cost related to share-based compensation arrangements granted under the 2012 Employee Plan. 41,000 and 24,000 options were granted during the nine months ended March 31, 2020 and 2019, respectively. 17,200 and 15,600 options vested during the nine months ended March 31, 2020 and 2019, respectively. 13,000 and 0 options were granted during the three months ended March 31, 2020 and 2019, respectively. 2,600 and 0 options vested during the three months ended March 31, 2020 and 2019, respectively. The total fair value of the options vesting during the three months ended March 31, 2020 and 2019 under this plan was $33,000 and $0, respectively. The total fair value of the options vesting during the nine months ended March 31, 2020 and 2019 under this plan was $183,000 and $86,000, respectively. 2012 Non-Employee Stock Option Plan In December 2012, the stockholders approved the 2012 Non-Employee Stock Option Plan (the “2012 Non-Employee Plan”). This plan authorizes the granting of awards, the exercise of which would allow up to an aggregate of 50,000 shares of the Company’s common stock to be acquired by the holders of such awards. Under this plan, the Company may grant stock options to non-employee directors and consultants to the Company and its subsidiaries. Under the 2012 Non-Employee Plan, stock options may be granted with a term of up to 10 years at an exercise price equal to or greater than the fair market value on the date of grant and are exercisable in whole or in part at 20% per year beginning on the date of grant. An option granted under this plan shall vest in full upon a “change in control” as defined in the plan. At March 31, 2020, 12,000 stock options were outstanding, 5,760 stock options were exercisable and no further stock options were available for grant under this plan. The fair value of each option granted during the nine months ended March 31 was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: 2020 Risk-free interest rates 1.60 % Expected lives 10 years Expected volatility 44 % Expected dividend yields — % The following table reflects activity under the 2012 Non-Employee Plan for the nine months ended March 31,: 2020 2019 Weighted average Weighted average Options exercise price Options exercise price Outstanding, beginning of year 10,200 $ 7.99 27,800 $ 6.85 Granted 1,800 23.35 — — Exercised — — (14,600) 5.68 Outstanding, end of period 12,000 $ 10.29 13,200 $ 8.15 Exercisable, end of period 5,760 $ 8.35 4,200 $ 6.97 Weighted average fair value at grant date of options granted $ 12.94 n/a Total intrinsic value of options exercised n/a $ 167,000 Total intrinsic value of options outstanding $ 73,000 $ 166,000 Total intrinsic value of options exercisable $ 42,000 $ 58,000 0 and 3,600 stock options were exercised during the three months ended March 31, 2020 and 2019, respectively. No cash was received from option exercises during either of the three months ended March 31, 2020 or 2019 and the actual tax benefit realized for the tax deductions from option exercises was $0 and $10,000, respectively. 0 and 14,600 stock options were exercised during the nine months ended March 31, 2020 and 2019, respectively. No cash was received from option exercises during either of the nine months ended March 31, 2020 or 2019 and the actual tax benefit realized for the tax deductions from option exercises was $0 and $35,000, respectively. The following table summarizes information about stock options outstanding under the 2012 Non-Employee Plan at March 31, 2020: Options outstanding Options exercisable Weighted average Weighted Weighted Number remaining average exercise Number average exercise Range of exercise prices outstanding contractual life price exercisable price $4.37 - $23.35 12,000 7.5 $ 10.29 5,760 $ 8.35 12,000 7.5 $ 10.29 5,760 $ 8.35 As of March 31, 2020, there was $52,000 of unearned stock-based compensation cost related to share-based compensation arrangements granted under the 2012 Non-Employee Plan. 1,800 and 0 options were granted during the three months ended March 31, 2020 and 2019, respectively. 360 and 0 options vested during the three months ended March 31, 2020 and 2019, respectively. 1,800 and 0 options were granted during the nine months ended March 31, 2020 and 2019, respectively. 2,760 and 5,000 options vested during the nine months ended March 31, 2020 and 2019, respectively. The total fair value of the options vesting during the three months ended March 31, 2020 and 2019 under this plan was $3,000 and $0, respectively. The total fair value of the options vesting during the nine months ended March 31, 2020 and 2019 under this plan was $18,000 and $22,000, respectively. 2018 Non-Employee Stock Option Plan In December 2018, the stockholders approved the 2018 Non-Employee Stock Option Plan (the “2018 Non-Employee Plan”). This plan authorizes the granting of awards, the exercise of which would allow up to an aggregate of 50,000 shares of the Company’s common stock to be acquired by the holders of such awards. Under this plan, the Company may grant stock options to non-employee directors and consultants to the Company and its subsidiaries. Under the 2018 Non-Employee Plan, stock options may be granted with a term of up to 10 years at an exercise price equal to or greater than the fair market value on the date of grant and are exercisable in whole or in part at 20% per year beginning on the date of grant. An option granted under this plan shall vest in full upon a “change in control” as defined in the plan. At March 31, 2020, 48,400 stock options were outstanding, 12,240 stock options were exercisable and 0 stock options were available for grant under this plan. The fair value of each option granted during the nine months ended March 31 was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: 2020 2019 Risk-free interest rates 1.60% - 1.80 % 2.9 % Expected lives years years Expected volatility 44% - 45 % 50 % Expected dividend yields — % — % The following table reflects activity under the 2018 Non-Employee Plan for the nine months ended March 31,: 2020 2019 Weighted average Weighted average Options exercise price Options exercise price Outstanding, beginning of year 15,200 $ 16.20 — $ — Granted 33,200 26.82 20,000 16.20 Outstanding, end of period 48,400 $ 23.48 20,000 $ 16.20 Exercisable, end of period 12,240 $ 21.96 4,000 $ 16.20 Weighted average fair value at grant date of options granted $ 15.09 $ Total intrinsic value of options exercised n/a n/a Total intrinsic value of options outstanding $ 0 $ 91,000 Total intrinsic value of options exercisable $ 0 $ 18,000 No stock options were exercised during the nine months ended March 31, 2020 and 2019. No cash was received from option exercises during either of the nine months ended March 31, 2020 or 2019 and the actual tax benefit realized for the tax deductions from option exercises was $0 for each of these periods. The following table summarizes information about stock options outstanding under the 2018 Non-Employee Plan at March 31, 2020: Options outstanding Options exercisable Weighted average Weighted Weighted Number remaining average exercise Number average exercise Range of exercise prices outstanding contractual life price exercisable price $16.20-$30.54 48,400 9.4 $ 23.48 12,240 $ 21.96 48,400 9.4 $ 23.48 12,240 $ 21.96 As of March 31, 2020, there was $444,000 of unearned stock-based compensation cost related to share-based compensation arrangements granted under the 2018 Non-Employee Plan. 17,200 and 0 options were granted during the three months ended March 31, 2020 and 2019, respectively. 3,440 and 0 options vested during the three months ended March 31, 2020 and 2019, respectively. 33,200 and 20,000 options were granted during the nine months ended March 31, 2020 and 2019, respectively. 2,400 and 4,000 options vested during the nine months ended March 31, 2020 and 2019, respectively. The total fair value of the options vesting during the three months ended March 31, 2020 and 2019 under this plan was $45,000 and $0, respectively. The total fair value of the options vesting during the nine months ended March 31, 2020 and 2019 under this plan was $133,000 and $41,000, respectively.

Stockholders' Equity Transactio

Stockholders' Equity Transactions	9 Months Ended
	Mar. 31, 2020
Stockholders' Equity Transactions
Stockholders' Equity Transactions	NOTE 9 – Stockholders’ Equity Transactions On September 16, 2014, the Company’s board of directors authorized the repurchase of up to 1 million of the approximately 19.4 million shares of the Company’s common stock outstanding. On December 21, 2018, the Company’s board of directors authorized the repurchase of up to an additional 500,000 shares. As of March 31, 2020, there was an aggregate 297,422 shares that may yet be purchased under the two repurchase plans. The repurchase will be made from time to time in the open market or in privately negotiated transactions subject to market conditions and the market price of the common stock. The Company repurchased 137,303 shares of its common stock during the nine months ended March 31, 2020 at a weighted average price of $17.12. Shares repurchased under the two plans from inception through March 31, 2020 are included in the Company’s Treasury Stock as of March 31, 2020.

401(k) Plan

401(k) Plan	9 Months Ended
	Mar. 31, 2020
401(k) Plan
401(k) Plan	NOTE 10 - 401(k) Plan The Company maintains a 401(k) plan (“the Plan”) that covers all U.S. non-union employees with one or more years of service and is qualified under Sections 401(a) and 401(k) of the Internal Revenue Code. Company contributions to this plan are discretionary and totaled $33,000 and $34,000 for the three months ended March 31, 2020 and 2019, respectively, and $98,000 and $99,000 for the nine months ended March 31, 2020 and 2019, respectively.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Mar. 31, 2020
Commitments and Contingencies
Commitments and Contingencies	NOTE 11 - Commitments and Contingencies Leases Effective July 1, 2019, the Company adopted the new lease accounting standard using the modified retrospective transition option of applying the new standard at the adoption date. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to not reassess (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases, and (3) initial direct costs for any existing leases. Adoption of the new standard resulted in the recording of an operating ROU asset and lease liabilities of approximately $7.7 million. Given the length of the lease term, the right-of-use asset and corresponding liability assume a weighted discount rate as disclosed below. A change in the rate utilized could have a material effect on the amounts reported. Financial positions for reporting periods beginning on or after July 1, 2019 are presented under new guidance, while prior period amounts are not adjusted and continue to be reported in accordance with previous guidance. Our lease obligation consists of a 99 year lease which commenced on April 26, 1993 with one of the Company’s foreign subsidiaries, expiring in 2092, for approximately four acres of land in the Dominican Republic at an annual cost of $288,000, on which the Company’s principal production facility is located. Operating leases are included in operating lease right-of-use assets, accrued expenses and operating lease liabilities, non-current on our condensed consolidated balance sheets For the three and nine months ended March 31, 2020 cash payments against operating lease liabilities totaled $72,000 and $240,000, respectively. Supplemental balance sheet information related to operating leases was as follows: Weighted-average remaining lease term 72 years Weighted-average discount rate 3.55 % The following is a schedule, by years, of maturities of lease liabilities as of March 31, 2020 (in thousands): Year Ending June 30, Amount 2020 $ 72 2021 280 2022 270 2023 261 2024 251 Thereafter 6,267 Total $ 7,401 As previously disclosed in our 2019 Annual Report on Form 10-K and under the previous lease accounting standard, undiscounted future minimum lease payments for operating leases having initial or remaining non-cancellable lease terms in excess of one year are as follows (in thousands): Year Ending June 30, Amount 2020 $ 315 2021 314 2022 311 2023 297 2024 288 Thereafter 19,536 Total $ 21,061 Operating lease expense totaled approximately $79,000 and $84,000, for the three months ended March 31, 2020 and 2019, respectively. Operating lease expense totaled approximately $237,000 and $250,000, for the nine months ended March 31, 2020 and 2019, respectively. Litigation In the normal course of business, the Company is a party to claims and/or litigation. Management believes that the settlement of such claims and/or litigation, considered in the aggregate, will not have a material adverse effect on the Company’s financial position and results of operations. Employment and Severance Agreements As of March 31, 2020, the Company was obligated under three employment agreements and one severance agreement. The employment agreements are with the Company’s CEO, Senior Vice President of Sales and Marketing (“the SVP of Sales”) and the Senior Vice President of Engineering (“the SVP of Engineering”). The employment agreement with the CEO provides for an annual salary of $806,000, as adjusted for inflation; incentive compensation as may be approved by the Board of Directors from time to time and a termination payment in an amount up to 299% of the average of the prior five calendar year's compensation, subject to certain limitations, as defined in the agreement. The employment agreement renews annually in August unless either party gives the other notice of non-renewal at least six months prior to the end of the applicable term. The employment agreement with the SVP of Sales was terminated by mutual agreement and replaced with a Consulting Agreement that does not provide for severance. The employment agreement with the SVP of Engineering expires in August 2022 and provides for an annual salary of $334,000 and provides for payment equal to nine months of salary and six months of health insurance in the event of a non-voluntary termination of employment without cause or for any reason within three months of a change in control of the Company. The severance agreement with the Senior Vice President of Operations and Finance and provides for severance of nine month’s salary, continued company-sponsored health insurance for six months from the date of termination and certain non-compete and other restrictive provisions if termination occurs by the Company without cause or for any reason within three months of a change in corporate control of the Registrant.

COVID-19 and Current Economic C

COVID-19 and Current Economic Conditions and Subsequent Event	9 Months Ended
	Mar. 31, 2020
COVID-19 and Current Economic Conditions and Subsequent Event
COVID-19 and Current Economic Conditions and Subsequent Event	Note 13 - COVID-19 and Current Economic Conditions and Subsequent Event On March 11, 2020, the World Health Organization announced that the COVID-19 outbreak was deemed a pandemic, and on March 13, 2020, the President of the United States declared the ongoing COVID-19 pandemic of sufficient magnitude to warrant an emergency declaration. The extent of COVID-19's effect on the Company's operational and financial performance will depend on future developments, including the duration, spread and intensity of the pandemic, and when state and local economies will return to operational norms, all of which are uncertain and difficult to predict considering the rapidly evolving landscape. In particular, certain of our customers are in or have exposure areas that have reduced or suspended operations, or are located in areas that have been subject to stay-at-home orders. A prolonged stay-at-home order, or any other continued decrease in economic activity as a result of COVID-19, would have a negative adverse impact on our customers and their financial condition, which could impact their ability to meet their financial obligations and could result in elevated levels of delinquencies and bad debt losses. In addition, we rely upon our third-party vendors to provide parts and materials for us to produce our products. If any of these vendors are unable to continue to provide us with these parts and materials, it could negatively impact our ability to serve our customers. We also could be adversely affected if key personnel or a significant number of employees were to become unavailable due to the effects and restrictions of a COVID-19 outbreak in our market areas. In April 2020, the Company received $1,054,000 in loan proceeds pursuant to the Paycheck Protection Program (“PPP”) administered by the U.S. Small Business Administration. The loan will bear interest at 1% per annum, mature in April 2022 and contains no collateral or guarantee requirements. Subject to certain eligibility and certification requirements under the PPP, some or all of the loan amount may be forgiven; however, the amount and timing of any forgiveness is uncertain. It is not currently possible to ascertain the overall impact of COVID-19 on the Company's business. However, if the pandemic continues to evolve into a prolonged worldwide health crisis, the disease could have a material adverse effect on the Company's business, results of operations, financial condition and cash flows.

Nature of Business and Summar_2

Nature of Business and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Mar. 31, 2020
Nature of Business and Summary of Significant Accounting Policies
Nature of Business	Nature of Business : Napco Security Technologies, Inc. and Subsidiaries (the "Company") is a diversified manufacturer of security products, encompassing access control systems, door-locking products, intrusion and fire alarm systems and video surveillance products for commercial and residential use. The Company also provides wireless communication service for intrusion and fire alarm systems. These products are used for commercial, residential, institutional, industrial and governmental applications, and are sold worldwide principally to independent distributors, dealers and installers of security equipment. The Company’s fiscal year begins on July 1 and ends on June 30. Historically, the end users of the Company's products want to install its products prior to the summer; therefore sales of its products historically peak in the period April 1 through June 30, the Company’s fiscal fourth quarter, and are reduced in the period July 1 through September 30, the Company’s fiscal first quarter. In addition, demand is affected by the housing and construction markets.
Principles of Consolidation	Principles of Consolidation The unaudited condensed consolidated financial statements of the Company, including these notes, have been prepared by the Company in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the rules and regulations promulgated by the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been omitted or condensed. However, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended June 30, 2019 and the notes thereto included in the Company’s Annual Report on Form 10‑K filed with the SEC on September 13, 2019. Results of consolidated operations for the interim periods are not necessarily indicative of a full year’s operating results. The unaudited condensed consolidated financial statements include the accounts of Napco Security Technologies, Inc. and all of its wholly-owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation.
Accounting Estimates	Accounting Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent gains and losses at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Critical estimates include management’s judgments associated with reserves for sales returns and allowances, allowance for doubtful accounts, inventory reserves, intangible assets and income taxes. Actual results could differ from those estimates.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The methods and assumptions used to estimate the fair value of the following classes of financial instruments were: Current Assets and Current Liabilities - The carrying amount of cash and cash equivalents, certificates of deposits, current receivables and payables and certain other short-term financial instruments approximate their fair value as of March 31, 2020 and June 30, 2019 due to their short-term maturities.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include approximately $460,000 of short-term time deposits at March 31, 2020 and June 30, 2019. The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company has cash balances in banks in excess of the maximum amount insured by the Federal Deposit Insurance Corporation ("FDIC") and other international agencies as of March 31, 2020 and June 30, 2019. The Company has not historically experienced any credit losses with balances in excess of FDIC limits.
Accounts Receivable	Accounts Receivable Accounts receivable is stated net of the allowances for doubtful accounts of $326,000 as of March 31, 2020 and $88,000 at June 30, 2019. Our allowances for doubtful accounts are subjective critical estimates that have a direct impact on reported net income. These allowances are based upon the evaluation of our accounts receivable aging, specific exposures, sales levels and historical trends.
Inventories	Inventories Inventories are valued at the lower of cost or net realizable value, with cost being determined on the first-in, first-out ("FIFO") method. The reported net value of inventory includes finished saleable products, work-in-process and raw materials that will be sold or used in future periods. Inventory costs include raw materials, direct labor and overhead. The Company’s overhead expenses are applied based, in part, upon estimates of the proportion of those expenses that are related to procuring and storing raw materials as compared to the manufacture and assembly of finished products. These proportions, the method of their application, and the resulting overhead included in ending inventory, are based in part on subjective estimates and actual results could differ from those estimates. In addition, the Company records an inventory obsolescence reserve, which represents any excess of the cost of the inventory over its estimated realizable value, based on various product sales projections. This reserve is calculated using an estimated obsolescence percentage applied to the inventory based on age, historical trends, requirements to support forecasted sales, and the ability to find alternate applications of its raw materials and to convert finished product into alternate versions of the same product to better match customer demand. In addition, and as necessary, the Company may establish specific reserves for future known or anticipated events. There is inherent professional judgment and subjectivity made by both production and engineering members of management in determining the estimated obsolescence percentage. The Company also regularly reviews the period over which its inventories will be converted to sales. Any inventories expected to convert to sales beyond 12 months from the balance sheet date are classified as non-current.
Property, Plant, and Equipment	Property, Plant, and Equipment Property, plant, and equipment are carried at cost less accumulated depreciation. Expenditures for maintenance and repairs are charged to expense as incurred; costs of major renewals and improvements are capitalized. At the time property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are eliminated from the asset and accumulated depreciation accounts and the profit or loss on such disposition is reflected in income. Depreciation is recorded over the estimated service lives of the related assets using primarily the straight-line method. Amortization of leasehold improvements is calculated by using the straight-line method over the estimated useful life of the asset or lease term, whichever is shorter.
Intangible Assets	Intangible Assets Intangible assets with definite lives are amortized over their useful lives. Indefinite-lived intangible assets are reviewed for impairment at least annually at the Company’s fiscal year end of June 30 or more often whenever there is an indication that the carrying amount may not be recovered. The Company’s acquisition of substantially all of the assets and certain liabilities of G. Marks Hardware, Inc. (“Marks”) in August 2008 included intangible assets recorded at fair value on the date of acquisition. The customer relationships are amortized over their estimated useful lives of twenty years. The Marks trade name was deemed to have an indefinite life. Changes in intangible assets are as follows (in thousands): March 31, 2020 June 30, 2019 Accumulated Net book Accumulated Net book Cost amortization value Cost amortization value Customer relationships $ 9,800 $ (8,666) $ 1,134 $ 9,800 $ (8,468) $ 1,332 Trade name 5,900 — 5,900 5,900 — 5,900 $ 15,700 $ (8,666) $ 7,034 $ 15,700 $ (8,468) $ 7,232 Amortization expense for intangible assets subject to amortization was approximately $66,000 and $78,000 for the three months ended March 31, 2020 and 2019, respectively. Amortization expense for intangible assets subject to amortization was approximately $198,000 and $235,000 for the nine months ended March 31, 2020 and 2019, respectively. Amortization expense for each of the next five fiscal years is estimated to be as follows: 2020 -$264,000; 2021 - $223,000; 2022 - $188,000; 2023 - $159,000 and 2024 - $134,000. The remaining weighted average amortization period for intangible assets was 8.4 years and 9.4 years at March 31, 2020 and 2019, respectively. During the nine months ended March 31, 2020, the Company experienced a decline in revenues related to the Trade Name intangible asset compared to the nine months ended March 31, 2019. Management considered whether the decline in revenues and loss from continuing operations related to this intangible asset during the three and nine months ended March 31, 2020 constituted a triggering event requiring the assessment of the Trade Name for impairment. It was determined that such decline in revenues did constitute a triggering event. Management performed a preliminary impairment analysis, developing a fair value of the Trade Name as of March 31, 2020, utilizing estimates and assumptions related to future revenue growth, discount rates, and royalty rates and determined that no impairment was necessary to be recorded. Based on the Company’s seasonal sales cycle, management believes that it is too early to assess if the unfavorable conditions are short-term in nature that will be recovered in the future. The fourth quarter of the fiscal year is typically the Company’s strongest quarter for revenue and gross margin generated from the Trade Name. As a result, management will continue to evaluate its forward projections, on-going operations and growth initiatives in light of the current economic conditions, which re-evaluation is scheduled to be completed in the fourth quarter in connection with the annual impairment test. The continuing adverse economic conditions in the U.S. may reduce revenues and gross margins associated with the Company’s intangible assets and result in a reduction of future expected cash flows. If declines occur, they would likely affect the discount and royalty rates used in the annual impairment analysis of the Trade Name. If any impairment is identified, the related adjustment to identifiable intangible assets will be recorded against the operations of the period in which such identification is made and may be material.
Long-Lived Assets	Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets in question may not be recoverable. Impairment would be recorded in circumstances where undiscounted cash flows expected to be generated by an asset are less than the carrying value of that asset.
Leases	Leases Effective July 1, 2019, in accordance with Accounting Standards Codification ("ASC"), Topic 842, Leases at the inception of a contract, we assess whether the contract is, or contains, a lease. The assessment is based on (1) whether the contract involves the use of a distinct identified asset, (2) whether the Company obtains the right to substantially all the economic benefit from the use of the asset throughout the period, and (3) whether the Company has the right to direct the use of the asset. All significant lease arrangements are generally recognized at lease commencement. Operating lease right-of-use (“ROU”) assets and lease liabilities are recognized at commencement. An ROU asset and corresponding lease liability are not recorded for leases with an initial term of 12 months or less (short term leases) and we recognize lease expense for these leases as incurred over the lease term. ROU assets represent our right to use an underlying asset during the reasonably certain lease term and lease liabilities represent our obligation to make lease payments arising from the lease. We primarily use our incremental borrowing rate based on information available at the lease commencement date, in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Lease payments may be fixed or variable, however, only fixed payments or in-substance fixed payments are included in determining the lease liability. See Note 11 - Commitments for additional accounting policies and transition disclosures.
Revenue Recognition	Revenue Recognition The Company recognizes revenue when its customers obtain control of its products or services, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods and services. See Note 2 – Revenue Recognition for additional accounting policies and transition disclosures.
Advertising and Promotional Costs	Advertising and Promotional Costs Advertising and promotional costs are included in "Selling, General and Administrative" expenses in the consolidated statements of income and are expensed as incurred. Advertising expense for the three months ended March 31, 2020 and 2019 was $307,000 and $190,000, respectively. Advertising expense for the nine months ended March 31, 2020 and 2019 was $1,448,000 and $1,278,000, respectively.
Research and Development Costs	Research and Development Costs Research and development costs incurred by the Company are charged to expense as incurred and are included in operating expenses in the consolidated statements of income. Company-sponsored research and development expense for the three months ended March 31, 2020 and 2019 was $1,816,000 and $1,851,000, respectively. Company-sponsored research and development expense for the nine months ended March 31, 2020 and 2019 was $5,387,000 and $5,358,000, respectively.
Income Taxes	Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company measures and recognizes the tax implications of positions taken or expected to be taken in its tax returns on an ongoing basis.
Net Income per Share	Net Income per Share Basic net income per common share ("Basic EPS") is computed by dividing net income by the weighted average number of common shares outstanding. Diluted net income per common share ("Diluted EPS") is computed by dividing net income by the weighted average number of common shares and dilutive common share equivalents and convertible securities then outstanding. The following provides a reconciliation of information used in calculating the per share amounts for the three months ended December 31 (in thousands, except per share data): Net Income Weighted Average Shares Net Income per Share 2020 2019 2020 2019 2020 2019 Basic EPS $ 3,615 $ 3,122 18,472 18,489 $ 0.20 $ 0.17 Effect of Dilutive Securities: Stock Options — — 44 44 — — Diluted EPS $ 3,615 $ 3,122 18,516 18,533 $ 0.20 $ 0.17 Options to purchase 44,000 and 0 shares of common stock were excluded for the three months ended March 31, 2020 and 2019, respectively were not included in the computation of Diluted EPS because their inclusion would be anti-dilutive. These options were still outstanding at the end of the respective periods. The following provides a reconciliation of information used in calculating the per share amounts for the nine months ended March 31 (in thousands, except per share data): Net Income Weighted Average Shares Net Income per Share 2020 2019 2020 2019 2020 2019 Basic EPS $ 10,420 $ 7,495 18,476 18,607 $ 0.56 $ 0.40 Effect of Dilutive Securities: Stock Options — — 54 47 — — Diluted EPS $ 10,420 $ 7,495 18,530 18,654 $ 0.56 $ 0.40 Options to purchase 27,000 and 3,942 shares of common stock were excluded for the nine months ended March 31, 2020 and 2019, respectively were not included in the computation of Diluted EPS because their inclusion would be anti-dilutive. These options were still outstanding at the end of the respective periods.
Stock-Based Compensation	Stock-Based Compensation The Company has established three share incentive programs as discussed in Note 8. Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense on a straight-line basis over the vesting period. Determining the fair value of share-based awards at the grant date requires assumptions and judgments about expected volatility and forfeiture rates, among other factors. Stock-based compensation costs of $172,000 and $0 were recognized for the three months ended March 31, 2020 and 2019, respectively. Stock-based compensation costs of $497,000 and $152,000 were recognized for the nine months ended March 31, 2020 and 2019, respectively.
Foreign Currency	Foreign Currency The Company has determined the functional currency of all foreign subsidiaries is the U.S Dollar. All foreign operations are considered a direct and integral part or extension of the Company’s operations. The day-to-day operations of all foreign subsidiaries are dependent on the economic environment of the U.S Dollar. Therefore, no realized or unrealized gains and losses associated with foreign currency translation are recorded for the nine months ended March 31, 2020 or 2019.
Comprehensive Income	Comprehensive Income For the nine months ended March 31, 2020 and 2019, the Company’s operations did not give rise to material items includable in comprehensive income, which were not already included in net income. Accordingly, the Company’s comprehensive income approximates its net income for all periods presented.
Segment Reporting	Segment Reporting The Company’s reportable operating segments are determined based on the Company’s management approach. The management approach is based on the way that the chief operating decision maker organizes the segments within an enterprise for making operating decisions and assessing performance. The Company’s results of operations are reviewed by the chief operating decision maker on a consolidated basis and the Company operates in only one segment. The Company has presented required geographical data in Note 12.
Shipping and Handling Revenues and Costs	Shipping and Handling Revenues and Costs The Company records the amount billed to customers for shipping and handling in net sales ($135,000 and $109,000 in the three months ended March 31, 2020 and 2019, respectively and $355,000 and $313,000 in the nine months ended March 31, 2020 and 2019, respectively) and classifies the costs associated with these revenues in cost of sales ($300,000 and $280,000 in the three months ended March 31, 2020 and 2019, respectively and $831,000 and $827,000 in the nine months ended March 31, 2020 and 2019, respectively).
Recently Issued and Adopted Accounting Standards	Recently Issued and Adopted Accounting Standards On July 1, 2019, we adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02), as amended, which supersedes the lease accounting guidance under Topic 840, and generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. We adopted the new guidance using the modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application and not restating comparative periods. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases. For information regarding the impact of Topic 842 adoption, see Significant Accounting Policies - Leases and Note 11— Leases.

Nature of Business and Summar_3

Nature of Business and Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Mar. 31, 2020
Nature of Business and Summary of Significant Accounting Policies
Schedule of intangible assets	Changes in intangible assets are as follows (in thousands): March 31, 2020 June 30, 2019 Accumulated Net book Accumulated Net book Cost amortization value Cost amortization value Customer relationships $ 9,800 $ (8,666) $ 1,134 $ 9,800 $ (8,468) $ 1,332 Trade name 5,900 — 5,900 5,900 — 5,900 $ 15,700 $ (8,666) $ 7,034 $ 15,700 $ (8,468) $ 7,232
Schedule of Earnings Per Share Reconciliation	The following provides a reconciliation of information used in calculating the per share amounts for the three months ended December 31 (in thousands, except per share data): Net Income Weighted Average Shares Net Income per Share 2020 2019 2020 2019 2020 2019 Basic EPS $ 3,615 $ 3,122 18,472 18,489 $ 0.20 $ 0.17 Effect of Dilutive Securities: Stock Options — — 44 44 — — Diluted EPS $ 3,615 $ 3,122 18,516 18,533 $ 0.20 $ 0.17 The following provides a reconciliation of information used in calculating the per share amounts for the nine months ended March 31 (in thousands, except per share data): Net Income Weighted Average Shares Net Income per Share 2020 2019 2020 2019 2020 2019 Basic EPS $ 10,420 $ 7,495 18,476 18,607 $ 0.56 $ 0.40 Effect of Dilutive Securities: Stock Options — — 54 47 — — Diluted EPS $ 10,420 $ 7,495 18,530 18,654 $ 0.56 $ 0.40

Revenue Recognition and Contr_2

Revenue Recognition and Contracts with Customers (Tables)	9 Months Ended
	Mar. 31, 2020
Revenue Recognition and Contracts with Customers
Schedule of disaggregation of revenues	Following is the disaggregation of revenues based on major product lines (in thousands): Three months ended March 31, Nine months ended March 31, 2020 2019 2020 2019 Major Product Lines: Intrusion and access alarm products $ 8,409 $ 8,113 $ 24,163 $ 22,928 Door locking devices 11,598 12,484 36,810 37,944 Services 6,232 4,546 17,380 12,476 Total Revenues $ 26,239 $ 25,143 $ 78,353 $ 73,348

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Mar. 31, 2020
Inventories
Schedule of Inventories, net	Inventories, net of reserves consist of the following (in thousands): March 31, June 30, 2020 2019 Component parts $ 26,366 $ 21,543 Work-in-process 6,581 5,377 Finished products 9,690 7,918 $ 42,637 $ 34,838 Classification of inventories, net of reserves (in thousands): Current $ 34,615 $ 29,576 Non-current 8,022 5,262 $ 42,637 $ 34,838

Property, Plant, and Equipment

Property, Plant, and Equipment (Tables)	9 Months Ended
	Mar. 31, 2020
Property, Plant and Equipment
Schedule of Property, Plant and Equipment	Property, plant and equipment consist of the following (in thousands): March 31, June 30, 2020 2019 Useful Life in Years Land $ 904 $ 904 — Buildings 8,911 8,911 30 to 40 Molds and dies 7,337 7,333 3 to 5 Furniture and fixtures 2,789 2,691 5 to 10 Machinery and equipment 24,588 23,915 7 to 10 Leasehold improvements 2,173 1,625 Shorter of the lease term or life of asset 46,702 45,379 Less: accumulated depreciation and amortization (38,597) (37,685) $ 8,105 $ 7,694

Stock Options (Tables)

Stock Options (Tables)	9 Months Ended
	Mar. 31, 2020
2012 Employee Stock Option Plan [Member]
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	The fair value of each option granted during the nine months ended March 31 was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: 2020 2019 Risk-free interest rates 1.30% - 2.10 % 3.10 % Expected lives 10 years 10 years Expected volatility 44% - 46 % 52 % Expected dividend yields 0 % 0 %
Schedule of Share-based Compensation, Stock Options, Activity	The following table reflects activity under the 2012 Employee Plan for the nine months ended March 31,: 2020 2019 Weighted average Weighted average Options exercise price Options exercise price Outstanding, beginning of year 72,500 $ 11.01 57,200 $ 7.09 Granted 41,000 27.76 24,000 15.28 Exercised (14,100) 7.57 (13,200) 6.43 Outstanding, end of period 99,400 $ 18.41 68,000 $ 10.11 Exercisable, end of period 36,900 $ 13.27 33,000 $ 7.84 Weighted average fair value at grant date of options granted $ 15.28 $ 8.76 Total intrinsic value of options exercised $ 255,000 $ 150,000 Total intrinsic value of options outstanding $ 241,000 $ 723,000 Total intrinsic value of options exercisable $ 172,000 $ 430,000
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range	The following table summarizes information about stock options outstanding under the 2012 Employee Plan at March 31, 2020: Options outstanding Options exercisable Weighted average Number remaining Weighted average Number Weighted average Range of exercise prices outstanding contractual life exercise price exercisable exercise price $4.37‑$33.59 99,400 8.2 $ 18.41 36,900 $ 13.27 99,400 8.2 $ 18.41 36,900 $ 13.27
2012 Non-Employee Stock Option Plan [Member]
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	The fair value of each option granted during the nine months ended March 31 was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: 2020 Risk-free interest rates 1.60 % Expected lives 10 years Expected volatility 44 % Expected dividend yields — %
Schedule of Share-based Compensation, Stock Options, Activity	The following table reflects activity under the 2012 Non-Employee Plan for the nine months ended March 31,: 2020 2019 Weighted average Weighted average Options exercise price Options exercise price Outstanding, beginning of year 10,200 $ 7.99 27,800 $ 6.85 Granted 1,800 23.35 — — Exercised — — (14,600) 5.68 Outstanding, end of period 12,000 $ 10.29 13,200 $ 8.15 Exercisable, end of period 5,760 $ 8.35 4,200 $ 6.97 Weighted average fair value at grant date of options granted $ 12.94 n/a Total intrinsic value of options exercised n/a $ 167,000 Total intrinsic value of options outstanding $ 73,000 $ 166,000 Total intrinsic value of options exercisable $ 42,000 $ 58,000
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range	The following table summarizes information about stock options outstanding under the 2012 Non-Employee Plan at March 31, 2020: Options outstanding Options exercisable Weighted average Weighted Weighted Number remaining average exercise Number average exercise Range of exercise prices outstanding contractual life price exercisable price $4.37 - $23.35 12,000 7.5 $ 10.29 5,760 $ 8.35 12,000 7.5 $ 10.29 5,760 $ 8.35
2018 Non-Employee Stock Option Plan
Schedule of Share-based Compensation, Stock Options, Activity	The following table reflects activity under the 2018 Non-Employee Plan for the nine months ended March 31,: 2020 2019 Weighted average Weighted average Options exercise price Options exercise price Outstanding, beginning of year 15,200 $ 16.20 — $ — Granted 33,200 26.82 20,000 16.20 Outstanding, end of period 48,400 $ 23.48 20,000 $ 16.20 Exercisable, end of period 12,240 $ 21.96 4,000 $ 16.20 Weighted average fair value at grant date of options granted $ 15.09 $ Total intrinsic value of options exercised n/a n/a Total intrinsic value of options outstanding $ 0 $ 91,000 Total intrinsic value of options exercisable $ 0 $ 18,000
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range	The following table summarizes information about stock options outstanding under the 2018 Non-Employee Plan at March 31, 2020: Options outstanding Options exercisable Weighted average Weighted Weighted Number remaining average exercise Number average exercise Range of exercise prices outstanding contractual life price exercisable price $16.20-$30.54 48,400 9.4 $ 23.48 12,240 $ 21.96 48,400 9.4 $ 23.48 12,240 $ 21.96
Fair Value Measurement Inputs and Valuation Techniques	The fair value of each option granted during the nine months ended March 31 was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: 2020 2019 Risk-free interest rates 1.60% - 1.80 % 2.9 % Expected lives years years Expected volatility 44% - 45 % 50 % Expected dividend yields — % — %

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Mar. 31, 2020
Commitments and Contingencies
Summary of cash payments against operating lease liabilities	Supplemental balance sheet information related to operating leases was as follows: Weighted-average remaining lease term 72 years Weighted-average discount rate 3.55 %
Schedule of maturities of lease liabilities	The following is a schedule, by years, of maturities of lease liabilities as of March 31, 2020 (in thousands): Year Ending June 30, Amount 2020 $ 72 2021 280 2022 270 2023 261 2024 251 Thereafter 6,267 Total $ 7,401
Summary of future minimum lease payments for operating leases	As previously disclosed in our 2019 Annual Report on Form 10-K and under the previous lease accounting standard, undiscounted future minimum lease payments for operating leases having initial or remaining non-cancellable lease terms in excess of one year are as follows (in thousands): Year Ending June 30, Amount 2020 $ 315 2021 314 2022 311 2023 297 2024 288 Thereafter 19,536 Total $ 21,061

Geographical Data (Tables)

Geographical Data (Tables)	9 Months Ended
	Mar. 31, 2020
Geographical Data
Schedule Of Revenue From External Customers And Identifiable Assets By Geographical Areas	Financial Information Relating to Domestic and Foreign Operations (in thousands) Three months ended March 31, Nine months ended March 31, 2020 2019 2020 2019 Sales to external customers(1): Domestic $ 25,662 $ 24,763 $ 76,717 $ 71,649 Foreign 577 380 1,636 1,699 Total Net Sales $ 26,239 $ 25,143 $ 78,353 $ 73,348 March 31, June 30, Identifiable assets: 2020 2019 United States $ 63,128 $ 59,683 Dominican Republic (2) 38,612 26,225 Total Identifiable Assets $ 101,740 $ 85,908 (1) All of the Company’s sales originate in the United States and are shipped primarily from the Company’s facilities in the United States. There were no sales into any one foreign country in excess of 10% of total Net Sales. Consists primarily of inventories (March 31, 2020 = $27,494, June 30, 2019 = $22,549) and long-lived assets (March 31, 2020 = $3,489, June 30, 2019 = $3,443) located at the Company’s principal manufacturing facility in the Dominican Republic.

Nature of Business and Summar_4

Nature of Business and Summary of Significant Accounting Policies - Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Jun. 30, 2019
Intangible Assets by Major Class [Line Items]
Finite-lived intangible assets, Cost	$ 15,700	$ 15,700
Finite-lived intangible assets, Accumulated amortization	(8,666)	(8,468)
Finite-lived intangible assets, Net book value	7,034	7,232
Trade name [Member]
Intangible Assets by Major Class [Line Items]
Finite-lived intangible assets, Cost	5,900	5,900
Finite-lived intangible assets, Accumulated amortization	0	0
Finite-lived intangible assets, Net book value	5,900	5,900
Customer relationships [Member]
Intangible Assets by Major Class [Line Items]
Finite-lived intangible assets, Cost	9,800	9,800
Finite-lived intangible assets, Accumulated amortization	(8,666)	(8,468)
Finite-lived intangible assets, Net book value	$ 1,134	$ 1,332

Nature of Business and Summar_5

Nature of Business and Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Nature of Business and Summary of Significant Accounting Policies
Basic EPS	$ 3,615	$ 3,122	$ 10,420	$ 7,495
Weighted Average Shares, Basic EPS	18,472,000	18,489,000	18,476,000	18,607,000
Stock Options	44,000	44,000	54,000	47,000
Diluted EPS	$ 3,615	$ 3,122	$ 10,420	$ 7,495
Weighted Average Shares, Diluted EPS	18,516,000	18,533,000	18,530,000	18,654,000
Net Income Per Share, Basic	$ 0.20	$ 0.17	$ 0.56	$ 0.40
Net Income Per Share, Diluted	$ 0.20	$ 0.17	$ 0.56	$ 0.40

Nature of Business and Summar_6

Nature of Business and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Jun. 30, 2019
Significant Accounting Policies [Line Items]
Short-term time deposits	$ 460,000		$ 460,000		$ 460,000
Intangible assets amortization expense	66,000	$ 78,000	198,000	$ 235,000
Estimated amortization expense- 2020	264,000		264,000
Estimated amortization expense - 2021	223,000		223,000
Estimated amortization expense - 2022	188,000		188,000
Estimated amortization expense - 2023	159,000		159,000
Estimated amortization expense- 2024	134,000		$ 134,000
Remaining weighted average amortization period for acquired intangible assets			8 years 4 months 24 days		9 years 4 months 24 days
Research and development costs	$ 1,815,000	$ 1,851,000	$ 5,387,000	$ 5,358,000
Antidilutive options outstanding excluded from diluted EPS computations	0	0	27,000	3,942
Stock-based compensation costs	$ 172,000	$ 0	$ 497,000	$ 152,000
Foreign Currency Transaction Gain (Loss), before Tax			$ 0	$ 0
Stock-based compensation costs, effect on EPS	$ 0.02	$ 0	$ 0.04	$ 0.01
Number of Operating Segments			1
Cost of Goods and Services Sold	$ 14,283,000	$ 14,414,000	$ 42,752,000	$ 42,389,000
Selling, General and Administrative Expenses [Member]
Significant Accounting Policies [Line Items]
Advertising and promotion costs	307,000	190,000	1,448,000	1,278,000
Sales revenue, net [Member] | Shipping and Handling [Member]
Significant Accounting Policies [Line Items]
Cost of Goods and Services Sold	300,000	280,000	831,000	827,000
Cost of sales [Member]
Significant Accounting Policies [Line Items]
Research and development costs	1,816,000	1,851,000	5,387,000	5,358,000
Cost of sales [Member] | Shipping and Handling [Member]
Significant Accounting Policies [Line Items]
Cost of Goods and Services Sold	135,000	$ 109,000	355,000	$ 313,000
Allowance for doubtful accounts current [Member]
Significant Accounting Policies [Line Items]
Valuation allowances and reserves, balance	$ 326,000		$ 326,000		$ 88,000

Revenue Recognition and Contr_3

Revenue Recognition and Contracts with Customers (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Disaggregation of Revenue [Abstract]
Equipment revenues	$ 20,007	$ 20,597	$ 60,973	$ 60,872
Services	6,232	4,546	17,380	12,476
Total Revenues	26,239	25,143	78,353	73,348
Intrusion and Access alarm products [Member]
Disaggregation of Revenue [Abstract]
Equipment revenues	8,409	8,113	24,163	22,928
Door locking devices [Member]
Disaggregation of Revenue [Abstract]
Equipment revenues	$ 11,598	$ 12,484	$ 36,810	$ 37,944

Revenue Recognition and Contr_4

Revenue Recognition and Contracts with Customers - Additional Information (Details) - USD ($)	Jul. 01, 2018	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets	$ 719,000
New Accounting Pronouncement or Change in Accounting Principle Income Tax Expense Benefit	191,000
New Accounting Pronouncement or Change in Accounting Principle Effect of Change In Other Assets	716,000
Return-related assets		$ 890,000		$ 890,000
New Accounting Pronouncement or Change in Accounting Principle Effect of Change on Receivables				$ 3,714,000
New Accounting Pronouncement or Change in Accounting Principle Effect of Change on Refund Liabilities	$ 1,627,000
Sales Revenue, Product Line [Member]
Concentration Risk, Percentage		9.00%	8.00%	9.00%	7.00%

Business and Credit Concentra_2

Business and Credit Concentrations (Details)	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Jun. 30, 2019
Concentration Risk [Line Items]
Percentage Of Single Significant Customer Balance To Total Accounts Receivables	24.00%		24.00%		19.00%
Percentage Of Another Significant Customer Balance To Total Accounts Receivable	13.00%		13.00%		10.00%
Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	10.00%		10.00%	10.00%
Sales Revenue, Net [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	12.00%	14.00%	11.00%	12.00%

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Jun. 30, 2019
Inventories
Component parts	$ 26,366	$ 21,543
Work-in-process	6,581	5,377
Finished products	9,690	7,918
Total Inventory	42,637	34,838
Current	34,615	29,576
Non-current	8,022	5,262
Total Inventory	$ 42,637	$ 34,838

Property, Plant, and Equipmen_2

Property, Plant, and Equipment (Details) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2020	Jun. 30, 2019
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 46,702	$ 45,379
Less: accumulated depreciation and amortization	(38,597)	(37,685)
Property, plant and equipment, net	8,105	7,694
Land [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 904	904
Property, plant and equipment, useful life	0 years
Buildings [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 8,911	8,911
Buildings [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	30 years
Buildings [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	40 years
Molds and dies [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 7,337	7,333
Molds and dies [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	3 years
Molds and dies [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	5 years
Furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 2,789	2,691
Furniture and fixtures [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	5 years
Furniture and fixtures [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	10 years
Machinery and equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 24,588	23,915
Machinery and equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	7 years
Machinery and equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	10 years
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 2,173	$ 1,625
Property, plant and equipment, useful life	Shorter of the lease term or life of asset

Property, Plant, and Equipmen_3

Property, Plant, and Equipment - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Property, Plant and Equipment
Depreciation and amortization	$ 306,000	$ 281,000	$ 912,000	$ 787,000

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($)	Dec. 22, 2017	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Jun. 30, 2018
Income Taxes
Deferred Tax Liabilities, Tax Deferred Income		$ 1,800,000		$ 1,800,000
Taxes Payable		442,000		$ 442,000
Deferred Income Tax Liability Payable period				8 years
Unrecognized Tax Benefits, Interest on Income Taxes Accrued		0		$ 0
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	35.00%			21.00%
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount						$ 381,000
Unrecognized Tax Benefits, Period Increase (Decrease)				$ 45,000
Unrecognized Tax Benefits that Would Impact Effective Tax Rate		171,000		171,000
Income Tax Expense (Benefit)		$ 425,000	$ 520,000	$ 1,225,000	$ 1,187,000

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Details) - USD ($)	9 Months Ended
	Mar. 31, 2020	Jun. 30, 2019
Revolving line of credit expiring June 2021 [Member]
Debt Instrument [Line Items]
Revolving credit loan facility, maximum borrowing capacity	$ 11,000,000
Long-term Line of Credit	$ 0	$ 0
Third Amended and Restated Credit Agreement [Member]
Debt Instrument [Line Items]
Percentage of common stock of foreign subsidiaries pledged as collateral	65.00%
Third Amended and Restated Credit Agreement [Member] | Variable Interest Rate Option One [Member] | Minimum [Member]
Debt Instrument [Line Items]
Interest rate over the reference rate	1.15%
Third Amended and Restated Credit Agreement [Member] | Variable Interest Rate Option One [Member] | Maximum [Member]
Debt Instrument [Line Items]
Interest rate over the reference rate	2.00%
Third Amended and Restated Credit Agreement [Member] | Variable Interest Rate Option Two [Member]
Debt Instrument [Line Items]
Interest rate over the reference rate	0.25%

Stock Options - Weighted Averag

Stock Options - Weighted Average Assumptions of Black-Scholes Option Pricing Model to Estimate Fair Value of Options Granted (Details)	9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
2012 Employee Stock Option Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-free interest rates		3.10%
Expected lives	10 years	10 years
Expected volatility		52.00%
Expected dividend yields	0.00%	0.00%
2012 Employee Stock Option Plan [Member] | Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-free interest rates	1.30%
Expected volatility	44.00%
2012 Employee Stock Option Plan [Member] | Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-free interest rates	2.10%
Expected volatility	46.00%
2012 Non-Employee Stock Option Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-free interest rates	1.60%
Expected lives	10 years
Expected volatility	44.00%
Expected dividend yields	0.00%
2018 Non-Employee Stock Option Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-free interest rates		2.90%
Expected lives	10 years	10 years
Expected volatility		50.00%
2018 Non-Employee Stock Option Plan | Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-free interest rates	1.60%
Expected volatility	44.00%
2018 Non-Employee Stock Option Plan | Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-free interest rates	1.80%
Expected volatility	45.00%

Stock Options - Reflects activi

Stock Options - Reflects activity (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
2012 Employee Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, beginning of year			72,500	57,200
Granted	13,000	0	41,000	24,000
Exercised	(14,100)	(3,700)	(14,100)	(13,200)
Outstanding, end of year	99,400	68,000	99,400	68,000
Exercisable, end of year	36,900	33,000	36,900	33,000
Weighted average fair value at grant date of options granted			$ 15.28	$ 8.76
Total intrinsic value of options exercised			$ 255,000	$ 150,000
Total intrinsic value of options outstanding	$ 241,000	$ 723,000	241,000	723,000
Total intrinsic value of options exercisable	$ 172,000	$ 430,000	$ 172,000	$ 430,000
Outstanding, beginning of year, weighted average exercise price			$ 11.01	$ 7.09
Granted, weighted average exercise price			27.76	15.28
Exercised, weighted average exercise price			7.57	6.43
Outstanding, end of period, weighted average exercise price	$ 18.41	$ 10.11	18.41	10.11
Exercisable, end of period, weighted average exercise price	$ 13.27	$ 7.84	$ 13.27	$ 7.84
2012 Non-Employee Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, beginning of year			10,200	27,800
Granted			1,800
Exercised	0	(3,600)	0	(14,600)
Outstanding, end of year	12,000	13,200	12,000	13,200
Exercisable, end of year	5,760	4,200	5,760	4,200
Weighted average fair value at grant date of options granted			$ 0
Total intrinsic value of options exercised				$ 0
Total intrinsic value of options outstanding	$ 73,000	$ 166,000	$ 73,000	166,000
Total intrinsic value of options exercisable	$ 42,000	$ 58,000	$ 42,000	$ 58,000
Outstanding, beginning of year, weighted average exercise price			$ 7.99	$ 6.85
Granted, weighted average exercise price			23.35
Exercised, weighted average exercise price			0	5.68
Outstanding, end of period, weighted average exercise price	$ 10.29	$ 8.15	10.29	8.15
Exercisable, end of period, weighted average exercise price	$ 8.35	$ 6.97	$ 8.35	$ 6.97
2018 Non-Employee Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, beginning of year			15,200
Granted	17,200	0	33,200	20,000
Exercised			0	0
Outstanding, end of year	48,400	20,000	48,400	20,000
Exercisable, end of year	12,240	4,000	12,240	4,000
Weighted average fair value at grant date of options granted			$ 15.09	$ 10.24
Total intrinsic value of options outstanding	$ 0	$ 91,000	$ 0	$ 91,000
Total intrinsic value of options exercisable	$ 0	$ 18,000	$ 0	$ 18,000
Outstanding, beginning of year, weighted average exercise price			$ 16.20
Granted, weighted average exercise price			26.82	$ 16.20
Outstanding, end of period, weighted average exercise price	$ 23.48	$ 16.20	23.48	16.20
Exercisable, end of period, weighted average exercise price	$ 21.96	$ 16.20	$ 21.96	$ 16.20

Stock Options - Stock options o

Stock Options - Stock options outstanding under the 2012 Employee Plan (Details)	9 Months Ended
	Mar. 31, 2020$ / sharesshares
2012 Employee Stock Option Plan [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, Number outstanding | shares	99,400
Options outstanding, Weighted average remaining contractual life	8 years 2 months 12 days
Options outstanding, Weighted average exercise price	$ 18.41
Options exercisable, Number exercisable | shares	36,900
Options exercisable, Weighted average exercise price	$ 13.27
2012 Employee Stock Option Plan [Member] | Exercise price range $4.37-$33.59 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, Number outstanding | shares	99,400
Options outstanding, Weighted average remaining contractual life	8 years 2 months 12 days
Options outstanding, Weighted average exercise price	$ 18.41
Options exercisable, Number exercisable | shares	36,900
Options exercisable, Weighted average exercise price	$ 13.27
Exercise price upper limit	33.59
Exercise price lower limit	$ 4.37
2012 Non-Employee Stock Option Plan [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, Number outstanding | shares	12,000
Options outstanding, Weighted average remaining contractual life	7 years 6 months
Options outstanding, Weighted average exercise price	$ 10.29
Options exercisable, Number exercisable | shares	5,760
Options exercisable, Weighted average exercise price	$ 8.35
2012 Non-Employee Stock Option Plan [Member] | Exercise price range $4.37 - $8.70 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, Number outstanding | shares	12,000
Options outstanding, Weighted average remaining contractual life	7 years 6 months
Options outstanding, Weighted average exercise price	$ 10.29
Options exercisable, Number exercisable | shares	5,760
Options exercisable, Weighted average exercise price	$ 8.35
Exercise price upper limit	23.35
Exercise price lower limit	$ 4.37
2018 Non-Employee Stock Option Plan
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, Number outstanding | shares	48,400
Options outstanding, Weighted average remaining contractual life	9 years 4 months 24 days
Options outstanding, Weighted average exercise price	$ 23.48
Options exercisable, Number exercisable | shares	12,240
Options exercisable, Weighted average exercise price	$ 21.96
2018 Non-Employee Stock Option Plan | Exercise price range $16.20 - $30.54 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, Number outstanding | shares	48,400
Options outstanding, Weighted average remaining contractual life	9 years 4 months 24 days
Options outstanding, Weighted average exercise price	$ 23.48
Options exercisable, Number exercisable | shares	12,240
Options exercisable, Weighted average exercise price	$ 21.96
Exercise price upper limit	30.54
Exercise price lower limit	$ 16.20

Stock Options - Additional Info

Stock Options - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Jun. 30, 2019	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share Based Compensation Expense	$ 172,000	$ 0	$ 497,000	$ 152,000
Share based Compensation Cost Effect On Earnings Per Share Basic And Diluted	$ 0.02	$ 0	$ 0.04	$ 0.01
Proceeds From Stock Options Exercised			$ 71,000	$ 24,000
2012 Employee Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for issuance under the plan	950,000		950,000
Percentage Applied To Market Price To Set Grant Price For Grantee Owning Ten Percent Or More Of Entity Common Stock Outstanding			110.00%
Term of stock option awards			10 years
Annual rate at which share-based compensation awards vest			20.00%
Number of stock options, exercisable	36,900	33,000	36,900	33,000
Number of stock options available for grant	751,900		751,900
Unearned stock-based compensation cost related to non-vested awards	$ 646,000		$ 646,000
Fair value of stock options that vested during the period	$ 33,000	$ 0	$ 183,000	$ 86,000
Fair value of stock options that vested during the period (shares)	2,600	0	17,200	15,600
Tax benefit from ISO option exercise	$ 8,000	$ 3,000	$ 8,000	$ 7,000
Number of shares outstanding, end of period	99,400	68,000	99,400	68,000	72,500	57,200
Common Stock, Voting Rights			Any plan participant who is granted ISOs and possesses more than 10% of the voting rights of the Company's outstanding common stock
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	14,100	3,700	14,100	13,200
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	13,000	0	41,000	24,000
Proceeds From Stock Options Exercised	$ 71,000	$ 3,000	$ 71,000	$ 27,000
2012 Non-Employee Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for issuance under the plan	50,000		50,000
Term of stock option awards			10 years
Annual rate at which share-based compensation awards vest			20.00%
Number of stock options, exercisable	5,760	4,200	5,760	4,200
Number of stock options available for grant	1,800	0	1,800	0
Fair value of stock options that vested during the period	$ 3,000	$ 0	$ 18,000	$ 22,000
Fair value of stock options that vested during the period (shares)	360	0	0	5,000
Tax benefit from ISO option exercise	$ 0	$ 10,000	$ 0	$ 35,000
Allocated Share Based Compensation Expense			$ 52,000
Number of shares outstanding, end of period	12,000	13,200	12,000	13,200	10,200	27,800
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	0	3,600	0	14,600
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			1,800
Proceeds From Stock Options Exercised	$ 0	$ 0	$ 0	$ 0
2018 Non-Employee Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for issuance under the plan	50,000		50,000
Term of stock option awards			10 years
Annual rate at which share-based compensation awards vest			20.00%
Number of stock options, exercisable	12,240	4,000	12,240	4,000
Number of stock options available for grant	0		0
Fair value of stock options that vested during the period	$ 45,000	$ 0	$ 133,000	$ 41,000
Fair value of stock options that vested during the period (shares)	0	0	2,400	4,000
Tax benefit from ISO option exercise			$ 0	$ 0
Allocated Share Based Compensation Expense			$ 444,000
Number of shares outstanding, end of period	48,400	20,000	48,400	20,000	15,200
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period			0	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	17,200	0	33,200	20,000
Proceeds From Stock Options Exercised			$ 0	$ 0

Stockholders' Equity Transact_2

Stockholders' Equity Transactions (Details) - $ / shares	3 Months Ended				9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Mar. 31, 2020	Jun. 30, 2019	Dec. 21, 2018	Sep. 16, 2014
Equity, Class of Treasury Stock [Line Items]
Stock Repurchase Program, Number of Shares Authorized to be Repurchased							500,000	1,000,000
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased	297,422				297,422
Common Stock Shares Outstanding	18,353,079				18,353,079	18,477,784		19,400,000
Treasury Stock Acquired, Average Cost Per Share					$ 17.12
Treasury Stock
Equity, Class of Treasury Stock [Line Items]
Treasury Stock, Shares, Acquired	137,303	(87,672)	(147,230)	(39,163)	137,303

401(k) Plan (Details)

401(k) Plan (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Napco Technologies 401 k Plan [Member]
Schedule of Deferred Compensation Plans [Line Items]
Deferred compensation plan expense	$ 33,000	$ 34,000	$ 98,000	$ 99,000

Commitments and Contingencies -

Commitments and Contingencies - Weighted - average lease term (Details)	Mar. 31, 2020
Commitments and Contingencies
Weighted-average remaining lease term	72 years
Weighted-average discount rate	3.55%

Commitments and Contingencies_2

Commitments and Contingencies - Lease liabilities (Details) $ in Thousands	Mar. 31, 2020USD ($)
Schedule, by years, of maturities of lease liabilities
2020	$ 72
2021	280
2022	270
2023	261
2024	251
There after	6,267
Total	$ 7,401

Commitments and Contingencies_3

Commitments and Contingencies - Future minimum lease payments (Details) $ in Thousands	Mar. 31, 2020USD ($)
Future minimum lease payments for operating leases
2020	$ 315
2021	314
2022	311
2023	297
2024	288
Thereafter	19,536
Total	$ 21,061

Commitments and Contingencies_4

Commitments and Contingencies - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Jul. 01, 2019
Lessee, Lease, Description [Line Items]
Operating lease right of use asset	$ 7,401,000		$ 7,401,000
Operating Lease Payments	72,000		240,000
Accounting Standards Update 2016-02 [Member]
Lessee, Lease, Description [Line Items]
Operating lease right of use asset					$ 7,700,000
Operating lease liability					$ 7,700,000
Employment and Severance Agreements [Member] | Chief executive officer [Member]
Lessee, Lease, Description [Line Items]
Annual salary commitment			$ 806,000
Termination pay commitment rate applied to the average of the prior five calendar years compensation			299.00%
Employment and Severance Agreements [Member] | Senior Vice President of Engineering [Member]
Lessee, Lease, Description [Line Items]
Expiration Year			2022
Annual salary commitment			$ 334,000
Land lease in Dominican Republic expiring 2092 [Member]
Lessee, Lease, Description [Line Items]
Expiration Year			2092
Annual minimum rent	$ 288,000		$ 288,000
Lessee, Operating Lease, Term of Contract	99 years		99 years
Leased property and equipment, excluding foreign land [Member]
Lessee, Lease, Description [Line Items]
Operating lease expense	$ 79,000	$ 84,000	$ 237,000	$ 250,000

Geographical Data (Details)

Geographical Data (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Jun. 30, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Net Sales	$ 26,239	$ 25,143	$ 78,353	$ 73,348
Total Identifiable Assets	101,740		101,740		$ 85,908
Domestic [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Net Sales	25,662	24,763	76,717	71,649
Foreign [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Net Sales	577	$ 380	1,636	$ 1,699
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Identifiable Assets	63,128		63,128		59,683
Dominican Republic [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Identifiable Assets	$ 38,612		$ 38,612		$ 26,225

Geographical Data - Additional

Geographical Data - Additional Information (Details) - USD ($)	Mar. 31, 2020	Jun. 30, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Inventories	$ 34,615,000	$ 29,576,000
Fixed assets	8,105,000	7,694,000
Dominican Republic [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Inventories	27,494	22,549
Fixed assets	$ 3,489	$ 3,443

COVID-19 and Current Economic_2

COVID-19 and Current Economic Conditions and Subsequent Event (Details) - Subsequent Event [Member]	1 Months Ended
	Apr. 30, 2020USD ($)
Debt Instrument [Line Items]
Proceeds from loan on paycheck protection program	$ 1,054,000
Interest rate per annum	1.00%