Dynatronics (DYNT) 10-Q 12 Nov 19 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2019	Nov. 06, 2019
Document and Entity Information:
Entity Registrant Name	DYNATRONICS CORP
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Amendment Flag	false
Entity Central Index Key	0000720875
Current Fiscal Year End Date	--06-30
Entity Common Stock, Shares Outstanding		8,849,928
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Current Reporting Status	Yes
Entity Shell Company	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2019	Jun. 30, 2019
Current assets:
Cash and cash equivalents	$ 374,644	$ 155,520
Restricted cash	100,510	100,510
Trade accounts receivable, less allowance for doubtful accounts of $89,500 as of September 30, 2019 and June 30, 2019	7,299,975	7,495,309
Other receivables	6,809	2,776
Inventories, net	11,129,982	11,527,521
Prepaid expenses	642,961	632,061
Income tax receivable	1,349	0
Total current assets	19,556,230	19,913,697
Property and equipment, net	5,499,584	5,677,419
Operating lease assets	3,534,949	0
Intangible assets, net	6,226,279	6,407,374
Goodwill	7,116,614	7,116,614
Other assets	509,891	516,841
Total assets	42,443,547	39,631,945
Current liabilities:
Accounts payable	4,923,221	3,989,546
Accrued payroll and benefits expense	1,229,353	1,373,481
Accrued expenses	1,050,917	1,038,726
Warranty reserve	207,988	207,988
Line of credit	5,076,906	6,540,639
Current portion of long-term debt	173,369	173,921
Current portion of finance lease liability	299,421	283,781
Current portion of deferred gain	150,448	150,448
Current portion of operating lease liability	897,209	0
Acquisition earn-out liability	375,000	500,000
Income tax payable	0	16,751
Total current liabilities	14,383,832	14,275,281
Long-term debt, net of current portion	83,363	129,428
Finance lease liability, net of current portion	2,830,489	2,915,241
Deferred gain, net of current portion	1,341,494	1,379,105
Operating lease liability, net of current portion	2,637,740	0
Other liabilities	182,289	177,181
Total liabilities	21,459,207	18,876,236
Commitments and contingencies
Stockholders' equity:
Preferred stock, no par value: Authorized 50,000,000 shares; 4,899,000 shares issued and outstanding as of September 30, 2019 and June 30, 2019	11,641,816	11,641,816
Common stock, no par value: Authorized 100,000,000 shares; 8,679,231 shares and 8,417,793 shares issued and outstanding as of September 30, 2019 and June 30, 2019, respectively	21,616,803	21,320,106
Accumulated deficit	(12,274,279)	(12,206,213)
Total stockholders' equity	20,984,340	20,755,709
Total liabilities and stockholders' equity	$ 42,443,547	$ 39,631,945

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2019	Jun. 30, 2019
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 89,500	$ 89,500
Preferred stock shares authorized	50,000,000	50,000,000
Preferred stock shares issued	4,899,000	4,899,000
Preferred stock shares outstanding	4,899,000	4,899,000
Common stock shares authorized	100,000,000	100,000,000
Common stock shares issued	8,679,231	8,417,793
Common stock shares outstanding	8,679,231	8,417,793

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Income Statement [Abstract]
Net sales	$ 16,389,549	$ 17,065,836
Cost of sales	11,235,542	11,518,611
Gross profit	5,154,007	5,547,225
Selling, general, and administrative expenses	4,924,692	5,496,623
Operating income	229,315	50,602
Other income (expense):
Interest expense, net	(130,992)	(120,842)
Other income, net	515	385,841
Net other (expense) income	(130,477)	264,999
Income before income taxes	98,838	315,601
Income tax (provision) benefit	0	0
Net income	98,838	315,601
Convertible preferred stock dividend, in common stock	(166,904)	(186,637)
Net (loss) income attributable to common stockholders	$ (68,066)	$ 128,964
Net (loss) income per common share
Basic	$ (0.01)	$ 0.02
Diluted	$ (0.01)	$ 0.02
Weighted-average common shares outstanding:
Basic	8,576,961	8,160,431
Diluted	8,576,961	8,400,824

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($)	Common Stock	Preferred Stock	Accumulated Deficit	Total
Balance at Jun. 30, 2018	$ 20,225,107	$ 11,641,816	$ (10,490,141)	$ 21,376,782
Balance - shares at Jun. 30, 2018	8,089,398	4,899,000
Stock-based compensation	$ 43,658			43,658
Stock-based compensation - shares	5,000
Preferred stock dividend, in common stock, issued or to be issued	$ 186,637		(186,637)
Preferred stock dividend, in common stock, issued or to be issued - shares	66,631
Net income (loss)			315,601	315,601
Balance at Sep. 30, 2018	$ 20,455,402	$ 11,641,816	(10,361,177)	21,736,041
Balance - shares at Sep. 30, 2018	8,161,029	4,899,000
Stock-based compensation	$ 56,082			56,082
Preferred stock dividend, in common stock, issued or to be issued	$ 203,268		(203,268)
Preferred stock dividend, in common stock, issued or to be issued - shares	65,494
Reduction in equity retained for acquisition holdback	$ (37,708)
Net income (loss)			(440,830)	(440,830)
Balance at Dec. 31, 2018	$ 20,714,752	$ 11,641,816	(11,005,275)	21,351,293
Balance - shares at Dec. 31, 2018	8,188,815	4,899,000
Stock-based compensation	$ 85,566			85,566
Stock-based compensation - shares	58,998
Preferred stock dividend, in common stock, issued or to be issued	$ 196,240		(196,240)
Preferred stock dividend, in common stock, issued or to be issued - shares	74,731
Net income (loss)			(563,387)	(563,387)
Balance at Mar. 31, 2019	$ 20,996,558	$ 11,641,816	(11,764,902)	20,873,472
Balance - shares at Mar. 31, 2019	8,322,544	4,899,000
Stock-based compensation	$ 115,343			115,343
Preferred stock dividend, in common stock, issued or to be issued	$ 208,205		(208,205)
Preferred stock dividend, in common stock, issued or to be issued - shares	95,249
Net income (loss)			(233,106)	(233,106)
Balance at Jun. 30, 2019	$ 21,320,106	$ 11,641,816	(12,206,213)	20,755,709
Balance - shares at Jun. 30, 2019	8,417,793	4,899,000
Stock-based compensation	$ 129,793			129,793
Stock-based compensation - shares	135,244
Preferred stock dividend, in common stock, issued or to be issued	$ 166,904		(166,904)
Preferred stock dividend, in common stock, issued or to be issued - shares	126,194
Net income (loss)			98,838	98,838
Balance at Sep. 30, 2019	$ 21,616,803	$ 11,641,816	$ (12,274,279)	$ 20,984,340
Balance - shares at Sep. 30, 2019	8,679,231	4,899,000

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018
Cash flows from operating activities:
Net loss	$ 98,838	$ (233,106)	$ (440,830)	$ 315,601
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization of property and equipment	246,890			198,975
Amortization of intangible assets	181,095			180,886
Amortization of other assets	11,218			12,189
Stock-based compensation expense	129,793	115,343	56,082	43,658
Change in allowance for doubtful accounts receivable	0			(12,483)
Change in allowance for inventory obsolescence	(1,740)			(31,046)
Amortization deferred gain on sale/leaseback	(37,611)			(37,612)
Change in fair value of earn-out liability	0			(375,000)
Change in operating assets and liabilities:
Trade accounts receivable	191,301			(713,704)
Inventories	399,279			255,680
Prepaid expenses	(10,900)			(87,373)
Other assets	(4,268)			(12,458)
Income tax receivable	(18,100)			(1,784)
Accounts payable and accrued expenses	806,846			385,821
Net cash provided by operating activities	1,992,641			121,350
Cash flows from investing activities:
Purchase of property and equipment	(65,969)			(26,065)
Net cash used in investing activities	(65,969)			(26,065)
Cash flows from financing activities:
Principal payments on long-term debt	(46,617)			(40,045)
Principal payments on finance lease liability	(72,198)			(58,334)
Payment of acquisition holdbacks	(125,000)			0
Net change in line of credit	(1,463,733)			(1,256,325)
Net cash used in financing activities	(1,707,548)			(1,354,704)
Net change in cash and cash equivalents	219,124			(1,259,419)
Cash and cash equivalents and restricted cash at beginning of the period	256,030		$ 436,697	1,696,116
Cash and cash equivalents and restricted cash at end of the period	475,154	$ 256,030		436,697
Supplemental disclosure of cash flow information:
Cash paid for interest	141,424			133,811
Supplemental disclosure of non-cash investing and financing activity:
Preferred stock dividends paid or to be paid in common stock	166,904			186,637
Finance lease obligations incurred to obtain ROU assets	3,086			0
Operating lease obligations incurred to obtain ROU assets	3,749,809			0
Inventory reclassified to demonstration equipment	$ 0			$ 239,106

Note 1. Presentation and Summar

Note 1. Presentation and Summary of Significant Accounting Policies	3 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Note 1. Presentation and Summary of Significant Accounting Policies	Business Dynatronics Corporation (“Company,” “Dynatronics”) is a leading medical device company committed to providing high-quality restorative products designed to accelerate optimal health. The Company designs, manufactures, and sells a broad range of restorative products for clinical use in physical therapy, rehabilitation, orthopedics, pain management, and athletic training. Through its distribution channels, Dynatronics markets and sells to orthopedists, physical therapists, chiropractors, athletic trainers, sports medicine practitioners, clinics, hospitals, and consumers. Basis of Presentation The accompanying unaudited condensed consolidated balance sheets as of September 30, 2019, and June 30, 2019, condensed consolidated statements of operations for the three months ended September 30, 2019 and 2018, and condensed consolidated statements of stockholders' equity and cash flows (“Financial Statements”) of Dynatronics for the three months ended September 30, 2019 and 2018, should be read in conjunction with the audited financial statements and notes thereto as of and for the year ended June 30, 2019 included in the Company’s Annual Report on Form 10-K (“Annual Report”) filed with the U.S. Securities and Exchange Commission (the “SEC”) on September 25, 2019. In the opinion of management, the accompanying Financial Statements have been prepared by the Company in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. In the opinion of the Company's management, the Financial Statements reflect all adjustments, consisting of only normal, recurring adjustments, necessary to fairly state our financial position, results of operations, and cash flows. The September 30, 2019 condensed consolidated balance sheet was derived from audited financial statements, but does not include all GAAP disclosures. The results of operations for the first three months of the fiscal year are not necessarily indicative of results for the full year or any future periods. The preparation of these unaudited condensed consolidated financial statements requires our management to make estimates and judgments that affect the amounts reported in the financial statements and the accompanying notes. The Company’s actual results may differ from these estimates under different assumptions or conditions. Reclassification Certain amounts in the prior year's condensed consolidated balance sheet have been reclassified for comparative purposes to conform to the presentation in the current year's condensed consolidated balance sheet. Recent Accounting Pronouncements In February 2016, the Financial Accounting Strandards Board issued ASU No. 2016-02, Leases (Topic 842,) a new guidance on leases. This guidance replaces the prior lease accounting guidance in its entirety. The underlying principle of the new standard is the recognition of right-of-use ("ROU") assets and lease liabilities by lessees for substantially all leases. The standard also requires additional quantitative and qualitative disclosures. The guidance is effective for interim and annual reporting periods beginning after December 15, 2018. The standard requires a modified retrospective approach, which includes several optional practical expedients. Accordingly, the standard is effective for the Company on July 1, 2019. The Company adopted Topic 842 as of July 1, 2019 using a modified retrospective method. Under this method, financial results reported in periods prior to July 1, 2019 are unchanged. The Company elected the ‘package of practical expedients’ which permits the Company to carryforward the historical lease classification. Adoption of the standard resulted in the recording of additional ROU assets and lease liabilities for operating leases of $3,749,809 as of July 1, 2019. The adoption of this guidance did not have an impact on net income.

Note 2. Acquisitions

Note 2. Acquisitions	3 Months Ended
	Sep. 30, 2019
Business Combinations [Abstract]
Note 2. Acquisitions	Bird & Cronin As of September 30, 2019, the earn-out liability was $375,000. On August 19, 2019, the Company entered an agreement to pay the earn-out in four equal monthly payments of $125,000, beginning in September 2019. The first payment was made on September 4, 2019. Subsequent payments were made on October 4, 2019 and on November 4, 2019. The final payment will be made on December 4, 2019.

Note 3. Net Loss per Common Sha

Note 3. Net Loss per Common Share	3 Months Ended
	Sep. 30, 2019
Net (loss) income per common share
Note 3. Net Loss per Common Share	Net income per common share is computed based on the weighted-average number of common shares outstanding and, when appropriate, dilutive potential common stock outstanding during the period. Stock options, convertible preferred stock and warrants are considered to be potential common stock. The computation of diluted net income per common share does not assume exercise or conversion of securities that would have an anti-dilutive effect. Basic net income per common share is the amount of net income for the period available to each weighted-average share of common stock outstanding during the reporting period. Diluted net income per common share is the amount of net income for the period available to each weighted-average share of common stock outstanding during the reporting period and to each share of potential common stock outstanding during the period, unless inclusion of potential common stock would have an anti-dilutive effect. The reconciliations between the basic and diluted weighted-average number of common shares outstanding for the three months ended September 30 are as follows: 2019 2018 Basic weighted-average number of common shares outstanding during the period 8,679,231 8,160,431 Weighted-average number of dilutive potential common shares outstanding during the period - 240,393 Diluted weighted-average number of common and potential common shares outstanding during the period 8,679,231 8,400,824 Certain outstanding options, warrants and convertible preferred stock for common shares are not included in the computation of diluted net income per common share because they were anti-dilutive, which for the three months ended September 30, 2019, and 2018, totaled 11,887,083 and 2,776,106, respectively.

Note 4. Convertible Preferred S

Note 4. Convertible Preferred Stock and Common Stock Warrants	3 Months Ended
	Sep. 30, 2019
Equity [Abstract]
Note 4. Convertible Preferred Stock and Common Stock Warrants	As of September 30, 2019, the Company had issued and outstanding a total of 2,000,000 shares of Series A 8% Convertible Preferred Stock (“Series A Preferred”) and 1,459,000 shares of Series B 8% Convertible Preferred Stock ("Series B Preferred"). The Series A Preferred and Series B Preferred are convertible into a total of 3,459,000 shares of common stock. Dividends payable on these preferred shares accrue at the rate of 8% per year and are payable quarterly in stock or cash at the option of the Company. The Company generally pays the dividends on the preferred stock by issuing shares of our common stock. The formula for paying these dividends using common stock in lieu of cash can change the effective yield on the dividend to more or less than 8% depending on the market price of the common stock at the time of issuance. As of September 30, 2019, there were also issued and outstanding 1,440,000 shares of Series C Non-Voting Convertible Preferred Stock (“Series C Preferred”). The Series C Preferred shares are non-voting, do not receive dividends, and have no liquidation preferences or redemption rights.

Note 5. Comprehensive Income

Note 5. Comprehensive Income	3 Months Ended
	Sep. 30, 2019
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Note 5. Comprehensive Income	For the three months ended September 30, 2019 and 2018, comprehensive income was equal to the net income as presented in the accompanying condensed consolidated statements of operations.

Note 6. Inventories

Note 6. Inventories	3 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
Note 6. Inventories	Inventories consisted of the following: September 30, 2019 June 30, 2019 Raw materials $ 5,798,849 $ 5,830,140 Work in process 840,147 706,128 Finished goods 4,705,477 5,129,806 Inventory obsolescence reserve (214,491 ) (138,553 ) $ 11,129,982 $ 11,527,521

Note 7. Leases

Note 7. Leases	3 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Note 7. Leases	Management determines if a contract is or contains a lease at inception or modification of a contract. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. Control over the use of the identified asset means the lessee has both (a) the right to obtain substantially all of the economic benefits from the use of the asset and (b) the right to direct the use of the asset. Such assets are classified as ROU assets with a corresponding lease liability. Finance and operating lease ROU assets and liabilities are recorded at commencement at the present value of future minimum lease payments over the expected lease term. As the implicit discount rate for the present value calculation is not determinable in most of the Company’s leases, management uses the Company’s incremental borrowing rate based on the information available at commencement of the lease. The expected lease terms include options to extend the lease when it is reasonably certain the Company will exercise such options. Lease expense for minimum lease payments is recognized on a straight-line basis over the expected lease term. Leases with an expected term of 12 months or less are not accounted for on the balance sheet and the related lease expense is recognized on a straight-line basis over the expected lease term. The Company has operating and finance leases for various administrative, manufacturing, and distribution facilities and equipment. Most of the Company’s leases include one or more options to renew and extend the lease term 2 years to 5 years. The exercise of lease renewal options is typically at the Company's sole discretion, however, as a material economic incentive to exercise the option exists, the majority of renewals to extend the lease terms are included in the ROU assets and lease liabilities as they are reasonably certain of exercise. The Company’s lease agreements do not contain any material nonlease components, residual value guarantees, or material restrictive covenants. Leases recorded on the balance sheet consist of the following: Leases Classification on the Balance Sheet September 30, 2019 Assets Operating lease assets Property and equipment, net $ 3,534,949 Finance lease assets Property and equipment, net $ 2,795,834 Liabilities Current Operating Current portion of operating lease liability $ 897,209 Finance Current portion of finance lease liability $ 299,421 Noncurrent Operating Operating lease liability, net of current portion $ 2,637,740 Finance Finance lease liability, net of current portion $ 2,830,489 Other information related to lease term and discount rate is as follows: September 30, 2019 Weighted Average Remaining Lease Term Operating leases 3.8 years Finance leases 9.3 years Weighted Average Discount Rate Operating leases 4.6% Finance leases 5.8% The components of lease expense are as follows: Classification on the Statement of Operations Three Months Ended September 30, 2019 Operating lease cost: Operating lease cost Cost of sales $ 70,515 Operating lease cost Selling, general, and administrative expenses 187,401 Short term lease cost Selling, general, and administrative expenses 15,750 Finance lease cost: Amortization of finance lease assets Cost of sales $ 35,670 Amortization of finance lease assets Selling, general, and administrative expenses 48,857 Interest on finance lease liabilities Interest expense, net 44,867 Total lease cost $ 403,060 Supplemental cash flow information related to leases is as follows: Three Months Ended September 30, 2019 ROU assets obtained in exchange for lease liabilities: Operating leases $ 3,749,809 Finance leases $ 3,086 Future minimum lease payments are summarized as follows: Operating Leases Finance Leases Year ending June 30, 2020 (excluding the three months ended September 30, 2019) $ 486,000 $ 341,250 2021 190,000 462,286 2022 - 469,536 2023 - 443,056 2024 - 384,754 Thereafter - 2,113,348 Total future minimum lease payments $ 676,000 $ 4,214,230 Imputed interest 904,615 Deferred rent 177,181 The Company leases office, manufacturing and warehouse facilities in Northvale, New Jersey; and Eagan, Minnesota from employees, shareholders, and entities controlled by shareholders, who were previously principals of businesses acquired by the Company. The combined expenses associated with these related-party transactions totaled $261,666 and $261,780 for the three months ended September 30, 2019 and 2018, respectively.

Note 8. Line of Credit

Note 8. Line of Credit	3 Months Ended
	Sep. 30, 2019
Line of Credit Facility [Abstract]
Note 8. Line of Credit	The Company has a line of credit (“Line of Credit”) available pursuant to a loan and security agreement (the “Loan and Security Agreement”), as amended, with Bank of the West, that matures on December 15, 2020. The Company’s obligations under the Line of Credit are secured by a first-priority security interest in substantially all of the Company’s assets. The Line of Credit requires a lockbox arrangement and contains affirmative and negative covenants, including covenants that restrict the Company's ability to, among other things, incur or guarantee indebtedness, incur liens, dispose of assets, engage in mergers and consolidations, make acquisitions or other investments, make changes in the nature of its business, and engage in transactions with affiliates. The agreement also contains financial covenants including a maximum monthly consolidated leverage and a minimum monthly consolidated fixed charge coverage ratio. As amended, the Loan and Security Agreement provides for revolving credit borrowings in an amount up to the lesser of $11,000,000 or the calculated borrowing base. The borrowing base is computed monthly and is equal to the sum of stated percentages of eligible accounts receivable and inventory, less a reserve. Amounts outstanding bear interest at LIBOR plus 2.25% (4.6% as of June 30, 2019). The Line of Credit is subject to an unused line fee of .25%. On June 21, 2019, the Company entered into a Fifth Modification of the Loan and Security Agreement (the “Modification”). The Modification includes, among other things, an amendment to certain provisions of the Loan and Security Agreement, including changes to the financial covenants of the Line of Credit, eliminates the consolidated leverage ratio and amends the minimum consolidated fixed charge coverage ratio. As modified, the fixed charge coverage ratio will apply only when the excess availability amount under the Line of Credit is less than the greater of $1,000,000 or 10% of the borrowing base. The Modification also adjusts upward the permissible limits of senior funded indebtedness and capital expenditures. Borrowings on the Line of Credit were $5,076,906 and $ 6,540,639 as of September 30, 2019 and June 30, 2019, respectively. As of September 30, 2019, there was approximately $2,593,000 available to borrow.

Note 9. Accrued Payroll and Ben

Note 9. Accrued Payroll and Benefits Expense	3 Months Ended
	Sep. 30, 2019
Accrued Liabilities [Abstract]
Note 9. Accrued Payroll and Benefits Expense	As of September 30, 2019 and June 30, 2019, the accrued payroll and benefits expense balance included $167,308 and $310,903, respectively, of accrued severance expense. The Company recognized $68,750 and $103,858 in severance expense during the three months ended September 30, 2019 and 2018, respectively. Severance expense is included in selling, general, and administrative expenses.

Note 10. Revenue

Note 10. Revenue	3 Months Ended
	Sep. 30, 2019
Disaggregation of Revenue [Abstract]
Note 10. Revenue	As of September 30, 2019 and June 30, 2019, the rebate liability was $318,449 and $287,430, respectively. The rebate liability is included in accrued expenses in the accompanying condensed consolidated balance sheets. As of September 30, 2019 and June 30, 2019, the allowance for sales discounts was $14,500. The allowance for sales discounts is included in trade accounts receivable, less allowance for doubtful accounts in the accompanying condensed consolidated balance sheets. The following table disaggregates revenue by major product category for the three months ended September 30: 2019 2018 Orthopedic Soft Goods and Medical Supplies $ 6,279,026 $ 5,872,168 Physical Therapy and Rehabilitation Equipment 10,037,720 11,044,841 Other 72,803 148,827 $ 16,389,549 $ 17,065,836

Note 11. Subsequent Events

Note 11. Subsequent Events	3 Months Ended
	Sep. 30, 2019
Subsequent Events [Abstract]
Note 11. Subsequent Events	In October 2019, the Company paid approximately $167,000 of preferred stock dividends with respect to the Series A Preferred and Series B Preferred that accrued during the three months ended September 30, 2019, by issuing 165,251 shares of common stock.

Note 1. Presentation and Summ_2

Note 1. Presentation and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation	The accompanying unaudited condensed consolidated balance sheets as of September 30, 2019, and June 30, 2019, condensed consolidated statements of operations for the three months ended September 30, 2019 and 2018, and condensed consolidated statements of stockholders' equity and cash flows (“Financial Statements”) of Dynatronics for the three months ended September 30, 2019 and 2018, should be read in conjunction with the audited financial statements and notes thereto as of and for the year ended June 30, 2019 included in the Company’s Annual Report on Form 10-K (“Annual Report”) filed with the U.S. Securities and Exchange Commission (the “SEC”) on September 25, 2019. In the opinion of management, the accompanying Financial Statements have been prepared by the Company in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. In the opinion of the Company's management, the Financial Statements reflect all adjustments, consisting of only normal, recurring adjustments, necessary to fairly state our financial position, results of operations, and cash flows. The September 30, 2019 condensed consolidated balance sheet was derived from audited financial statements, but does not include all GAAP disclosures. The results of operations for the first three months of the fiscal year are not necessarily indicative of results for the full year or any future periods. The preparation of these unaudited condensed consolidated financial statements requires our management to make estimates and judgments that affect the amounts reported in the financial statements and the accompanying notes. The Company’s actual results may differ from these estimates under different assumptions or conditions.
Reclassification	Certain amounts in the prior year's condensed consolidated balance sheet have been reclassified for comparative purposes to conform to the presentation in the current year's condensed consolidated balance sheet.
Recent Accounting Pronouncements	In February 2016, the Financial Accounting Strandards Board issued ASU No. 2016-02, Leases (Topic 842,) a new guidance on leases. This guidance replaces the prior lease accounting guidance in its entirety. The underlying principle of the new standard is the recognition of right-of-use ("ROU") assets and lease liabilities by lessees for substantially all leases. The standard also requires additional quantitative and qualitative disclosures. The guidance is effective for interim and annual reporting periods beginning after December 15, 2018. The standard requires a modified retrospective approach, which includes several optional practical expedients. Accordingly, the standard is effective for the Company on July 1, 2019. The Company adopted Topic 842 as of July 1, 2019 using a modified retrospective method. Under this method, financial results reported in periods prior to July 1, 2019 are unchanged. The Company elected the ‘package of practical expedients’ which permits the Company to carryforward the historical lease classification. Adoption of the standard resulted in the recording of additional ROU assets and lease liabilities for operating leases of $3,749,809 as of July 1, 2019. The adoption of this guidance did not have an impact on net income.

Note 3. Net Loss per Common S_2

Note 3. Net Loss per Common Share (Tables)	3 Months Ended
	Sep. 30, 2019
Note 3. Net Loss Per Common Share
Reconciliations between the basic and diluted weighted-average number of common shares outstanding	2019 2018 Basic weighted-average number of common shares outstanding during the period 8,679,231 8,160,431 Weighted-average number of dilutive potential common shares outstanding during the period - 240,393 Diluted weighted-average number of common and potential common shares outstanding during the period 8,679,231 8,400,824

Note 6. Inventories (Tables)

Note 6. Inventories (Tables)	3 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
Schedule of inventory	September 30, 2019 June 30, 2019 Raw materials $ 5,798,849 $ 5,830,140 Work in process 840,147 706,128 Finished goods 4,705,477 5,129,806 Inventory obsolescence reserve (214,491 ) (138,553 ) $ 11,129,982 $ 11,527,521

Note 7. Leases (Tables)

Note 7. Leases (Tables)	3 Months Ended
	Sep. 30, 2019
Leases [Abstract]
Other Information relating to lease	Leases Classification on the Balance Sheet September 30, 2019 Assets Operating lease assets Property and equipment, net $ 3,534,949 Finance lease assets Property and equipment, net $ 2,795,834 Liabilities Current Operating Current portion of operating lease liability $ 897,209 Finance Current portion of finance lease liability $ 299,421 Noncurrent Operating Operating lease liability, net of current portion $ 2,637,740 Finance Finance lease liability, net of current portion $ 2,830,489 Other information related to lease term and discount rate is as follows: September 30, 2019 Weighted Average Remaining Lease Term Operating leases 3.8 years Finance leases 9.3 years Weighted Average Discount Rate Operating leases 4.6% Finance leases 5.8%
Components of lease expense	Classification on the Statement of Operations Three Months Ended September 30, 2019 Operating lease cost: Operating lease cost Cost of sales $ 70,515 Operating lease cost Selling, general, and administrative expenses 187,401 Short term lease cost Selling, general, and administrative expenses 15,750 Finance lease cost: Amortization of finance lease assets Cost of sales $ 35,670 Amortization of finance lease assets Selling, general, and administrative expenses 48,857 Interest on finance lease liabilities Interest expense, net 44,867 Total lease cost $ 403,060
Supplemental cash flow information related to leases	Three Months Ended September 30, 2019 ROU assets obtained in exchange for lease liabilities: Operating leases $ 3,749,809 Finance leases $ 3,086
Future minimum lease payments	Operating Leases Finance Leases Year ending June 30, 2020 (excluding the three months ended September 30, 2019) $ 486,000 $ 341,250 2021 190,000 462,286 2022 - 469,536 2023 - 443,056 2024 - 384,754 Thereafter - 2,113,348 Total future minimum lease payments $ 676,000 $ 4,214,230 Imputed interest 904,615 Deferred rent 177,181

Note 10. Revenue (Tables)

Note 10. Revenue (Tables)	3 Months Ended
	Sep. 30, 2019
Disaggregation of Revenue [Abstract]
Disaggregation of revenue	2019 2018 Orthopedic Soft Goods and Medical Supplies $ 6,279,026 $ 5,872,168 Physical Therapy and Rehabilitation Equipment 10,037,720 11,044,841 Other 72,803 148,827 $ 16,389,549 $ 17,065,836

Note 3. Net Loss per Common S_3

Note 3. Net Loss per Common Share (Details) - shares	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Note 3. Net Loss Per Common Share
Basic weighted-average number of common shares outstanding during the period	8,576,961	8,160,431
Weighted-average number of dilutive potential common shares outstanding during the period	0	240,393
Diluted weighted-average number of common and potential common shares outstanding during the period	8,576,961	8,400,824

Note 3. Net Loss per Common S_4

Note 3. Net Loss per Common Share (Details Narrative) - shares	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Net (loss) income per common share
Antidilutive securities excluded from computation of earnings per share	11,887,083	2,776,106

Note 6. Inventories (Details)

Note 6. Inventories (Details) - USD ($)	Sep. 30, 2019	Jun. 30, 2019
Inventory Disclosure [Abstract]
Raw Materials	$ 5,798,849	$ 5,830,140
Work in Process	840,147	706,128
Finished Goods	4,705,477	5,129,806
Inventory Obsolescence Reserve	(214,491)	(138,553)
Inventories, Net	$ 11,129,982	$ 11,527,521

Note 7. Leases (Details)

Note 7. Leases (Details) - USD ($)	Sep. 30, 2019	Jun. 30, 2019
Assets and liabilities - leased assets
Operating lease assets included in property and equipment	$ 3,534,949	$ 0
Finance lease assets included in property and equipment	2,795,834
Current portion of operating lease liability	897,209	0
Current portion of finance lease liability	299,421	283,781
Operating lease liability, net of current portion	2,637,740	0
Finance lease liability, net of current portion	$ 2,830,489	$ 2,915,241
Weighted Average Remaining Lease Term, Operating leases	3 years 9 months 18 days
Weighted Average Remaining Lease Term, Finance leases	9 years 3 months 18 days
Weighted Average Discount Rate, Operating leases	4.60%
Weighted Average Discount Rate, Finance leases	5.80%

Note 7. Leases (Details 1)

Note 7. Leases (Details 1)	3 Months Ended
	Sep. 30, 2019USD ($)
Total lease cost	$ 403,060
Cost of sales
Operating lease cost	70,515
Amortization of finance lease assets	35,670
Selling, general, and administrative expenses
Operating lease cost	187,401
Short term lease cost	15,750
Amortization of finance lease assets	48,857
Interest expense, net
Interest on finance lease liabilities	$ 44,867

Note 7. Leases (Details 2)

Note 7. Leases (Details 2)	3 Months Ended
	Sep. 30, 2019USD ($)
ROU assets obtained in exchange for lease liabilities:
Operating leases	$ 3,749,809
Finance leases	$ 3,086

Note 7. Leases (Details 3)

Note 7. Leases (Details 3)	Sep. 30, 2019USD ($)
Operating Leases
Operating Leases 2020	$ 486,000
Operating Leases 2021	190,000
Operating Leases total future minimum lease payments	676,000
Finance Leases
2020 (excluding the three months ended September 30, 2019)	341,250
2021	462,286
2022	469,536
2023	443,056
2024	384,754
Thereafter	2,113,348
Total future minimum lease payments	4,214,230
Imputed interest	904,615
Deferred rent	$ 177,181

Note 8. Line of Credit (Details

Note 8. Line of Credit (Details Narrative) - USD ($)	Sep. 30, 2019	Jun. 30, 2019
Line of Credit Facility [Abstract]
Line of credit	$ 5,076,906	$ 6,540,639
Line of credit facility, current borrowing capacity	$ 2,593,000

Note 9. Accrued Payroll and B_2

Note 9. Accrued Payroll and Benefits Expense (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019
Accrued Liabilities [Abstract]
Accrued severance	$ 167,308		$ 310,903
Severance costs	$ 68,750	$ 103,858

Note 10. Revenue (Details)

Note 10. Revenue (Details) - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Net sales	$ 16,389,549	$ 17,065,836
Orthopedic Soft Goods and Medical Supplies
Net sales	6,279,026	5,872,168
Physical Therapy and Rehabilitation Equipment
Net sales	10,037,720	11,044,841
Other
Net sales	$ 72,803	$ 148,827