Dynatronics (DYNT) 10-Q 13 Feb 15 2015 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Dec. 31, 2014	Feb. 10, 2015
Document and Entity Information
Entity Registrant Name	DYNATRONICS CORP
Document Type	10-Q
Document Period End Date	31-Dec-14
Amendment Flag	FALSE
Entity Central Index Key	720875
Current Fiscal Year End Date	-24
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Entity Common Stock, Shares Outstanding		2,520,389

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Dec. 31, 2014	Jun. 30, 2014
Current assets:
Cash and cash equivalents	$199,593	$332,800
Trade accounts receivable, less allowance for doubtful accounts of $373,150 as of December 31, 2014 and $325,355 as of June 30, 2014	2,957,485	3,165,396
Other receivables	9,983	15,594
Inventories, net	5,980,659	6,157,848
Prepaid expenses and other	640,060	298,370
Current portion of deferred income tax assets	453,775	408,919
Total current assets	10,241,555	10,378,927
Property and equipment, net	5,280,003	2,980,677
Intangible assets, net	213,122	235,440
Other assets	698,090	396,456
Deferred income tax assets, net of current portion	1,243,978	303,644
Total assets	17,676,748	14,295,144
Current liabilities:
Current portion of long-term debt	122,760	302,274
Current portion of capital lease	168,588
Current portion of deferred gain	150,448
Line of credit	1,522,691	3,521,209
Warranty reserve	152,520	157,753
Accounts payable	2,031,767	2,433,534
Accrued expenses	348,764	342,716
Accrued payroll and benefits expense	309,178	243,394
Income tax payable	575,948	30,452
Total current liabilities	5,382,664	7,031,332
Long-term debt, net of current portion	718,795	1,255,133
Capital lease, net of current portion	3,552,737
Deferred gain, net of current portion	2,056,121
Capital Lease Timing Differental	16,460
Total liabilities	11,726,777	8,286,465
Commitments and contingencies
Stockholders' equity:
Common stock, no par value: Authorized 50,000,000 shares; 2,520,389 shares issued and outstanding for both December 31, 2014 and June 30, 2014	7,183,723	7,149,812
Accumulated deficit	-1,233,752	-1,141,133
Total stockholders' equity	5,949,971	6,008,679
Total liabilities and stockholders' equity	$17,676,748	$14,295,144

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets Parenthetical (USD $)	Dec. 31, 2014	Jun. 30, 2014
Consolidated Balance Sheets Parenthetical
Allowance for doubtful accounts	$373,150	$325,355
Common stock par value
Common stock shares authorized	50,000,000	50,000,000
Common stock shares issued	2,520,389	2,520,389
Common stock shares outstanding	2,520,389	2,520,389

Consolidated_Statements_of_Inc

Consolidated Statements of Income (USD $)	3 Months Ended		6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Consolidated Statements of Income
Net sales	$7,303,189	$7,146,787	$14,519,513	$14,202,215
Cost of sales	4,839,578	4,469,256	9,488,330	8,943,615
Gross profit	2,463,611	2,677,531	5,031,183	5,258,600
Selling, general, and administrative expenses	2,379,720	2,315,463	4,631,349	4,694,833
Research and development expenses	234,674	238,711	451,500	553,534
Operating income (loss)	-150,783	123,357	-51,666	10,233
Other income (expense):
Interest income	1,280	34	3,601	38
Interest expense	-79,736	-56,045	-128,029	-115,958
Other income, net	3,113	6,238	6,455	10,762
Net other income (expense)	-75,343	-49,773	-117,973	-105,158
Income (loss) before income taxes	-226,126	73,584	-169,639	-94,925
Income tax benefit (provision)	92,583	-29,489	77,020	31,236
Net income (loss)	($133,543)	$44,095	($92,619)	($63,689)
Basic and diluted net loss per common share	($0.05)	$0.02	($0.04)	($0.03)
Weighted-average common shares outstanding:
Basic	2,520,389	2,518,904	2,520,389	2,518,904
Diluted	2,520,389	2,521,242	2,520,389	2,518,904

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net income (loss)	($92,619)	($63,689)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization of property and equipment	175,318	214,289
Amortization of intangible	152,976	41,525
Stock-based compensation expense	33,911	35,647
Change in deferred income tax assets	-985,190	-31,236
Provision for doubtful accounts receivable	48,000	48,000
Provision for inventory obsolescence	60,000	60,000
Deferred gain on UT building	-62,686
Change in operating assets and liabilities:
Change in Receivables	165,522	203,381
Change in Inventories	117,189	-220,839
Change in Prepaid expenses and other assets	-632,399	-187,348
Change in Other assets	-327,320
Change in Prepaid income taxes		20,248
Change in Income tax payable	545,496
Change in Accounts payable and accrued expenses	-318,708	22,599
Net cash provided by (used in)operating activities	-1,120,510	142,577
Cash flows from investing activities:
Purchase of property and equipment	-19,652	-45,500
Proceeds from sale of property and equipment	3,800,000
Net cash provided by (used in) investing activities	3,780,348	-45,500
Cash flows from financing activities:
Principal payments on long-term debt	-715,852	-160,951
Principal payments on long-term capital lease	-78,675
Net change in line of credit	-1,998,518	180,202
Net cash provided by (used in) financing activities	-2,793,045	19,251
Net change in cash and cash equivalents	-133,207	116,328
Cash and cash equivalents at beginning of the year	332,800	302,050
Cash and cash equivalents at end of the year	199,593	418,378
Supplemental disclosure of cash flow information:
Cash paid for interest	85,469	116,619
Cash paid for income taxes	356,151
Supplemental disclosure of non-cash investing and financing activities:
Capital lease	$3,800,000

Note_1_Presentation_and_Summar

Note 1. Presentation and Summary of Significant Accounting Policies	6 Months Ended
	Dec. 31, 2014
Notes
Note 1. Presentation and Summary of Significant Accounting Policies	NOTE 1.  PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	Basis of Presentation
	The condensed consolidated balance sheets as of December 31, 2014 and June 30, 2014, and the condensed consolidated statements of operations and cash flows for the three and six months ended December 31, 2014 and 2013 were prepared by Dynatronics Corporation (the “Company”) without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).  Certain information and disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations.  In the opinion of management, all necessary adjustments, which consist only of normal recurring adjustments, to the financial statements have been made to present fairly the Company’s financial position, results of operations and cash flows.  The results of operations for the three and six months ended December 31, 2014 are not necessarily indicative of the results of operations for the fiscal year ending June 30, 2015.  The Company previously filed with the SEC an annual report on Form 10-K, as amended, which included audited financial statements for each of the two years ended June 30, 2014 and 2013.  It is suggested that the financial statements contained in this Form 10-Q be read in conjunction with the financial statements and notes thereto contained in the Company’s most recent Form 10-K.
	Reverse Stock Split
	On December 19, 2012, the Company completed a 1-for-5 reverse split of its common stock. All common stock share and per share information in the accompanying condensed consolidated interim financial statements and notes thereto have been adjusted to reflect retrospective application of the reverse stock split, except for par value per share and the number of authorized shares, which were not affected by the reverse stock split.
	Use of Estimates
	The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. Some of the more significant estimates relate to inventory, allowance for doubtful accounts, stock-based compensation and valuation allowance for deferred income taxes.
	Significant Accounting Policies
	There have been no significant changes to the Company’s significant accounting policies as described in the Company’s Annual Report on Form 10-K, as amended, for the fiscal year ended June 30, 2014.

Note_2_Net_Income_loss_Per_Com

Note 2. Net Income (loss) Per Common Share	6 Months Ended
	Dec. 31, 2014
Notes
Note 2. Net Income (loss) Per Common Share	NOTE 2.  NET INCOME (LOSS) PER COMMON SHARE
	Net income (loss) per common share is computed based on the weighted-average number of common shares outstanding and, when appropriate, dilutive common stock equivalents outstanding during the period.  Stock options are considered to be common stock equivalents.  The computation of diluted net income (loss) per common share does not assume exercise or conversion of securities that would have an anti-dilutive effect.
	Basic net income (loss) per common share is the amount of net income (loss) for the period available to each weighted-average share of common stock outstanding during the reporting period. Diluted net income (loss) per common share is the amount of net income (loss) for the period available to each weighted-average share of common stock outstanding during the reporting period and to each common stock equivalent outstanding during the period, unless inclusion of common stock equivalents would have an anti-dilutive effect.
	The reconciliations between the basic and diluted weighted-average number of common shares outstanding for the six months ended December 31, 2014 and 2013 are as follows:
		Three Months Ended		Six Months Ended
		31-Dec		31-Dec
		2014	2013	2014	2013
	Basic weighted-average number of common shares outstanding during the period	2,520,389	2,518,904	2,520,389	2,518,904
	Weighted-average number of dilutive common stock options outstanding during the period	-	2,338	-	-
	Diluted weighted-average number of common and common equivalent shares outstanding during the period	2,520,389	2,521,242	2,520,389	2,518,904
	Outstanding options for common shares not included in the computation of diluted net income (loss) per common share, because they were anti-dilutive, for the three months ended December 31, 2014 and 2013 totaled 139,610 and 145,607, respectively, and for the six months ended December 31, 2014 and 2013 totaled 139,610 and 152,726, respectively.

Note_3_Stockbased_Compensation

Note 3. Stock-based Compensation	6 Months Ended
	Dec. 31, 2014
Notes
Note 3. Stock-based Compensation	NOTE 3. STOCK-BASED COMPENSATION
	Stock-based compensation cost is measured at the grant date, based on the estimated fair value of the award, and is recognized over the employee’s requisite service period. The Company recognized $16,457 and $17,728 in stock-based compensation expense during the three months ended December 31, 2014 and 2013, respectively, and recognized $33,911 and $35,647 in stock-based compensation expense during the six months ended December 31, 2014 and 2013, respectively. These expenses were recorded as selling, general and administrative expenses in the condensed consolidated statements of operations.
	Stock Options.  The Company maintains a 2005 equity incentive plan for the benefit of employees.  Incentive and nonqualified stock options, restricted common stock, stock appreciation rights, and other stock-based awards may be granted under the plan.  Awards granted under the plan may be performance-based.  As of December 31, 2014, there were 120,508 shares of common stock authorized and reserved for issuance, but not granted under the terms of the 2005 equity incentive plan, as amended.
	The following table summarizes the Company’s stock option activity during the six-month period ended December 31, 2014.
		Number of Options		Weighted-Average Exercise Price
	Outstanding at beginning of period	155,604	$	6.45
	Granted	-		-
	Exercised	-		-
	Cancelled	-2,620		4.93
	Outstanding at end of period	152,984		6.48
	Exercisable at end of period	145,935		6.86
	The Black-Scholes option-pricing model is used to estimate the fair value of options granted under the Company’s stock option plan. There were no options granted during the six months ended December 31, 2014.
	Expected option lives and volatilities are based on historical data of the Company. The risk-free interest rate is based on the U.S. Treasury Bills rate on the grant date for constant maturities that correspond with the option life. Historically, the Company has not declared dividends and there are no future plans to do so.
	As of December 31, 2014, there was $369,594 of unrecognized stock-based compensation cost related to grants under the stock option plan that is expected to be expensed over a weighted-average period of four to ten years. There was $9,868 of intrinsic value for options outstanding as of December 31, 2014.

Note_4_Comprehensive_Income_lo

Note 4. Comprehensive Income (loss)	6 Months Ended
	Dec. 31, 2014
Notes
Note 4. Comprehensive Income (loss)	NOTE 4.  COMPREHENSIVE INCOME (LOSS)
	For the six months ended December 31, 2014 and 2013, comprehensive income (loss) was equal to the net income (loss) as presented in the accompanying condensed consolidated statements of operations.

Note_5_Inventories

Note 5. Inventories	6 Months Ended
	Dec. 31, 2014
Notes
Note 5. Inventories	NOTE 5.  INVENTORIES
	Inventories consisted of the following:
			31-Dec-14	June 30, 2014
	Raw materials	$	2,641,942	2,783,306
	Finished goods		3,699,900	3,709,897
	Inventory obsolescence reserve		-361,183	-335,355
		$	5,980,659	6,157,848

Note_6_Relatedparty_Transactio

Note 6. Related-party Transactions	6 Months Ended
	Dec. 31, 2014
Notes
Note 6. Related-party Transactions	NOTE 6.  RELATED-PARTY TRANSACTIONS
	The Company currently leases office and warehouse space in Detroit, Michigan and Hopkins, Minnesota from two shareholders and former independent distributors on an annual basis under operating lease arrangements. Management believes the lease agreements are on an arms-length basis and the terms are equal to or more favorable than would be available to third parties. The expense associated with these related-party transactions totaled $17,700 and $17,250 for the three months ended December 31, 2014 and 2013, respectively, $35,400 and $34,500 for the six months ended December 31, 2014 and 2013, respectively.

Note_7_Line_of_Credit

Note 7. Line of Credit	6 Months Ended
	Dec. 31, 2014
Notes
Note 7. Line of Credit	NOTE 7.  LINE OF CREDIT
	The outstanding balance on our line of credit decreased $1,998,518 to $1,522,691 as of December 31, 2014, compared to $3,521,209 as of June 30, 2014.  This reduction was made possible by the sale and leaseback of our Cottonwood Heights, Utah facilities in which we generated approximately $2,100,000 in net cash to pay down our line of credit.  Interest on the line of credit is based on the 90-day LIBOR rate (0.26% as of December 31, 2014) plus 3.5%.  The line of credit is collateralized by accounts receivable and inventories.  Borrowing limitations are based on approximately 45% of eligible inventory and up to 80% of eligible accounts receivable, up to a maximum credit facility of approximately $2,400,000.  The maximum borrowing limit on our line of credit facility was reduced in August 2014 from $4,500,000 to $2,400,000 to reflect the reduction achieved through the previously reported payment of $2,100,000 on the line from the sale-leaseback of our Utah facilities.  Interest payments on the line are due monthly.  All borrowings under the line of credit are presented as current liabilities in the accompanying consolidated balance sheet.
	The line of credit agreement includes covenants requiring us to maintain certain financial ratios.  As of December 31, 2014, we were not in compliance with all loan covenants.  The line of credit matured on January 31, 2015.  The bank has agreed to leave the line open until February 28, 2015 to allow us to replace the line of credit with a new credit facility with another lender.  We are working with a new lender who has agreed in principle to pay off the bank by the end of February.   The terms of this new credit facility are not as favorable as our bank line of credit had been.  We expect that when fees are considered together with interest payable under the new line of credit agreement, the effective interest rate on borrowed money will be approximately 10%, compared to the rate payable on the bank line of credit which was approximately 4% per annum.  The lending limit on the new line of credit will be approximately $3,000,000.  Should we be unable to obtain this financing, we have offers from other lenders to provide financing.  We believe that amounts available under the new line of credit with the new lender as well as cash generated from operating activities will continue to be sufficient to meet our annual operating requirements.  Failure to obtain replacement financing would have a material adverse effect on our business operations and would raise doubt in regards to our ability to continue our normal business operations.

Note_8_Sale_Leaseback_Transact

Note 8. Sale Leaseback Transaction Disclosure	6 Months Ended
	Dec. 31, 2014
Notes
Note 8. Sale Leaseback Transaction Disclosure
	NOTE 8.  SALE OF UTAH FACILITY AND LEASE COMMITMENTS
	The Company entered into a lease agreement on August 8, 2014 for the sale-leaseback of its Utah facility which houses its executive offices and manufacturing facility. The agreement provided for the sale of the Utah facility for a purchase price of $3,800,000 and the subsequent leaseback for 180 monthly payments starting at $26,917 with an annual increase of two percent. The Company recorded a deferred gain of approximately $2,250,000 that will be amortized into income over the term of the lease. The cash proceeds from the sale were used primarily to pay down the Company’s line of credit.
	The lease is accounted for under the capital lease method of accounting and is being amortized over the 15-year term of the lease. The capital lease required a 5-year security deposit of $323,000 which is classified as an “other asset.” The deferred gain also triggered an increase in the deferred income tax. The actual lease payments will be split between interest expense and the capital lease payable. Annual future maturities of the capital lease (per FAS 13) are as follows: 2016, $173,357; 2017, $183,302; 2018, $193,818; 2019, $204,937; 2020, $216,694 and thereafter $2,666,097.

Note_9_Recent_Accounting_Prono

Note 9. Recent Accounting Pronouncements	6 Months Ended
	Dec. 31, 2014
Notes
Note 9. Recent Accounting Pronouncements	NOTE 9.  RECENT ACCOUNTING PRONOUNCEMENTS
	In August 2014, the Financial Accounting Standards Board (FASB) issued Accounting Stand Update (ASU) 2014-15, Presentation of Financial Statements – Going Concern: Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern. This ASU requires management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards, but not currently in GAAP. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). This ASU is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company is currently evaluating the impact that this ASU will have on its financial statements and believes no additional footnote disclosure will be required when adopted.
	In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2014-09 – Revenue from Contracts with Customers, which provides a single, comprehensive revenue recognition model for all contracts with customers. The core principal of this ASU is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. This ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. Early adoption is not permitted and companies can transition to the new standard under the full retrospective method or the modified retrospective method. The Company does not believe adoption of this ASU will have a material impact on its financial statements.

Note_1_Presentation_and_Summar1

Note 1. Presentation and Summary of Significant Accounting Policies: Basis of Presentation (Policies)	6 Months Ended
	Dec. 31, 2014
Policies
Basis of Presentation	Basis of Presentation
	The condensed consolidated balance sheets as of December 31, 2014 and June 30, 2014, and the condensed consolidated statements of operations and cash flows for the three and six months ended December 31, 2014 and 2013 were prepared by Dynatronics Corporation (the “Company”) without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).  Certain information and disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations.  In the opinion of management, all necessary adjustments, which consist only of normal recurring adjustments, to the financial statements have been made to present fairly the Company’s financial position, results of operations and cash flows.  The results of operations for the three and six months ended December 31, 2014 are not necessarily indicative of the results of operations for the fiscal year ending June 30, 2015.  The Company previously filed with the SEC an annual report on Form 10-K, as amended, which included audited financial statements for each of the two years ended June 30, 2014 and 2013.  It is suggested that the financial statements contained in this Form 10-Q be read in conjunction with the financial statements and notes thereto contained in the Company’s most recent Form 10-K.

Note_1_Presentation_and_Summar2

Note 1. Presentation and Summary of Significant Accounting Policies: Use of Estimates (Policies)	6 Months Ended
	Dec. 31, 2014
Policies
Use of Estimates	Use of Estimates
	The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. Some of the more significant estimates relate to inventory, allowance for doubtful accounts, stock-based compensation and valuation allowance for deferred income taxes.

Note_1_Presentation_and_Summar3

Note 1. Presentation and Summary of Significant Accounting Policies: Significant Accounting Policies (Policies)	6 Months Ended
	Dec. 31, 2014
Policies
Significant Accounting Policies	Significant Accounting Policies
	There have been no significant changes to the Company’s significant accounting policies as described in the Company’s Annual Report on Form 10-K, as amended, for the fiscal year ended June 30, 2014.

Note_2_Net_Income_loss_Per_Com1

Note 2. Net Income (loss) Per Common Share: Schedule of Earnings Per Share, Basic and Diluted (Tables)	6 Months Ended
	Dec. 31, 2014
Tables/Schedules
Schedule of Earnings Per Share, Basic and Diluted
		Three Months Ended		Six Months Ended
		31-Dec		31-Dec
		2014	2013	2014	2013
	Basic weighted-average number of common shares outstanding during the period	2,520,389	2,518,904	2,520,389	2,518,904
	Weighted-average number of dilutive common stock options outstanding during the period	-	2,338	-	-
	Diluted weighted-average number of common and common equivalent shares outstanding during the period	2,520,389	2,521,242	2,520,389	2,518,904

Note_3_Stockbased_Compensation1

Note 3. Stock-based Compensation: Summary of Stock Option Activity (Tables)	6 Months Ended
	Dec. 31, 2014
Tables/Schedules
Summary of Stock Option Activity		Number of Options		Weighted-Average Exercise Price
	Outstanding at beginning of period	155,604	$	6.45
	Granted	-		-
	Exercised	-		-
	Cancelled	-2,620		4.93
	Outstanding at end of period	152,984		6.48
	Exercisable at end of period	145,935		6.86

Note_5_Inventories_Schedule_of

Note 5. Inventories: Schedule of Inventory, Current (Tables)	6 Months Ended
	Dec. 31, 2014
Tables/Schedules
Schedule of Inventory, Current
			31-Dec-14	June 30, 2014
	Raw materials	$	2,641,942	2,783,306
	Finished goods		3,699,900	3,709,897
	Inventory obsolescence reserve		-361,183	-335,355
		$	5,980,659	6,157,848

Note_1_Presentation_and_Summar4

Note 1. Presentation and Summary of Significant Accounting Policies (Details)	6 Months Ended
	Dec. 31, 2014
Details
Reverse Stock Split	the Company completed a 1-for-5 reverse split of its common stock

Note_2_Net_Income_loss_Per_Com2

Note 2. Net Income (loss) Per Common Share: Schedule of Earnings Per Share, Basic and Diluted (Details)	3 Months Ended		6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Details
Basic weighted-average number of common shares outstanding during the year	2,520,389	2,518,904	2,520,389	2,518,904
Weighted-average number of dilutive common stock options outstandings during the year		2,338
Diluted weighted-average number of common and common equivalent shares outstanding during the year	2,520,389	2,521,242	2,520,389	2,518,904

Note_2_Net_Income_loss_Per_Com3

Note 2. Net Income (loss) Per Common Share (Details)	3 Months Ended		6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Details
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	139,610	145,607	139,610	152,726

Note_3_Stockbased_Compensation2

Note 3. Stock-based Compensation (Details) (USD $)	3 Months Ended		6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Details
Allocated Share-based Compensation Expense	$16,457	$17,728	$33,911	$35,647
Common Stock, Capital Shares Reserved for Future Issuance	120,508		120,508
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	369,594		369,594
Employee Service Share Based Compensation Unrecognized Compensation Costs On Nonvested Awards Weighted Average Period Of Recognition			four to ten years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value	$9,868		$9,868

Note_3_Stockbased_Compensation3

Note 3. Stock-based Compensation: Summary of Stock Option Activity (Details) (USD $)	6 Months Ended
	Dec. 31, 2014
Details
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance	155,604
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance	$6.45
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period	-2,620
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price	$4.93
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	152,984
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance	$6.48
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options	145,935
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price	$6.86

Note_5_Inventories_Schedule_of1

Note 5. Inventories: Schedule of Inventory, Current (Details) (USD $)	Dec. 31, 2014	Jun. 30, 2014
Details
Inventory, Raw Materials, Gross	$2,641,942	$2,783,306
Inventory, Finished Goods, Gross	3,699,900	3,709,897
Inventory Valuation Reserves	-361,183	-335,355
Inventories, net	$5,980,659	$6,157,848

Note_6_Relatedparty_Transactio1

Note 6. Related-party Transactions (Details) (USD $)	3 Months Ended		6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Details
Related Party Transaction, Expenses from Transactions with Related Party	$17,700	$17,250	$35,400	$34,500

Note_7_Line_of_Credit_Details

Note 7. Line of Credit (Details) (USD $)	6 Months Ended
	Dec. 31, 2014	Jun. 30, 2014
Details
Line of credit	$1,522,691	$3,521,209
Line of Credit Facility, Interest Rate Description	Interest on the line of credit is based on the 90-day LIBOR rate (0.26% as of December 31, 2014) plus 3.5%.
Line of Credit Facility, Collateral	Borrowing limitations are based on approximately 45% of eligible inventory and up to 80% of eligible accounts receivable,
Line of Credit Facility, Maximum Borrowing Capacity	2,400,000
Potential new lending limit	$3,000,000

Note_8_Sale_Leaseback_Transact1

Note 8. Sale Leaseback Transaction Disclosure: Leaseback transaction (Details) (USD $)	6 Months Ended
	Dec. 31, 2014
Details
Sale Leaseback Transaction, Date	8-Aug-14
Proceeds from sale of property and equipment	$3,800,000
Sale Leaseback Transaction, Monthly Rental Payments	$26,917

Note_8_Sale_Leaseback_Transact2

Note 8. Sale Leaseback Transaction Disclosure: Leaseback accounting description (Details) (USD $)	Dec. 31, 2014
Details
Sale Leaseback Transaction, Deferred Gain, Gross	$2,250,000
Security Deposit	323,000
Capital Leases, Future Minimum Payments Due, Next Twelve Months	173,357
Capital Leases, Future Minimum Payments Due in Two Years	183,302
Capital Leases, Future Minimum Payments Due in Three Years	193,818
Capital Leases, Future Minimum Payments Due in Four Years	204,937
Capital Leases, Future Minimum Payments Due in Five Years	216,694
Capital Leases, Future Minimum Payments Due Thereafter	$2,666,097