Oakridge (OKRG) 10-Q 22 Dec 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Sep. 30, 2015USD ($)shares
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Trading Symbol	okrg
Entity Registrant Name	OAKRIDGE HOLDINGS INC
Entity Central Index Key	73,605
Current Fiscal Year End Date	--06-30
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding | shares	1,431,503
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well Known Seasoned Issuer	No
Entity Public Float | $	$ 214,725
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2015	Jun. 30, 2015
Current assets
Cash	$ 170,866	$ 55,042
Trade accounts receivable, net	564,233	463,852
Inventories, net	2,024,431	2,382,634
Other current assets	31,960	36,032
Deferred income taxes, current	126,000	126,000
Total current assets	2,917,490	3,063,560
Property, plant & equipment
Property, plant & equipment at cost	3,133,118	3,128,577
Less accumulated depreciation	(2,034,534)	(2,016,840)
Total property, plant & equipment	1,098,584	1,111,737
Other assets, non-current
Deferred long-term income taxes	129,000	129,000
Deferred financing costs	40,569	44,402
Other asset, non-current	8,783	8,783
Total other assets	178,352	182,185
Total assets	4,194,426	4,357,482
Current liabilities
Trade accounts payable	810,328	825,288
Due to finance company	185,461	297,188
Accrued liabilities	677,185	594,767
Deferred revenue	195,982	293,685
Current maturities of long-term debt	305,353	317,990
Total current liabilities	2,174,309	2,328,918
Long-term liabilities
Long term debt less current portion	1,905,363	1,955,328
Total Long-term liabilities and non-controlling interest	1,905,363	1,955,328
Total liabilities	4,079,672	4,284,246
Stockholders' equity
Common Stock	143,151	143,151
Paid-in-capital	2,457,975	2,457,975
Accumulated deficit	(2,486,372)	(2,527,890)
Total stockholders' equity	114,754	73,236
Total liabilities and stockholders' equity	$ 4,194,426	$ 4,357,482

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Revenue, net:
Net Revenue	$ 1,406,737	$ 1,369,775
Cost of Revenue:
Cost of sales	1,140,959	1,161,036
Gross profit	265,778	208,739
Operating expenses
Sales & marketing	25,005	24,675
General & Administrative	136,006	115,605
Total operating expenses	161,011	140,280
Operating income	104,767	68,459
Other income (expenses)
Interest Income	0	237
Interest Expense	(36,249)	(44,653)
Total other expenses	(36,249)	(44,416)
Net income	68,518	24,043
Income tax expense	(27,000)	(9,000)
Net income	41,518	15,043
Discontinued Operation:
Net income (loss)	$ 41,518	$ 15,043
Weighted -average common shares used in the computation of EPS
Basic and diluted	1,431,503	1,431,503
Basic and diluted net income per share	$ 0.03	$ 0.01

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net income	$ 41,518	$ 15,043
Net cash flows from operating activities	182,967	69,566
Net cash flows from operating activities:
Depreciation and amortization	17,694	19,585
Deferred income taxes	0	(22,000)
Receivables	(100,381)	(42,436)
Inventories	358,203	(21,068)
Prepaids & other assets	7,905	(23,868)
Accounts payable and due to finance company	(126,678)	115,812
Deferred revenue	(97,703)	(41,103)
Accrued liabilities	(82,418)	69,601
Cash flows used in investing activities:
Purchases of property and equipment	(4,541)	(4,233)
Changes in restricted cash	0	(6)
Net cash flows used in investing activities	(4,541)	(4,239)
Cash flows used in financing activities:
Increase (decrease) in line of credit	0	42,803
Principal payments on long-term debt	(62,602)	(83,032)
Net cash flows used in financing activities	(62,602)	(40,229)
Net change in cash	115,824	25,098
Cash position
Beginning of year	55,042	324,291
End of period	$ 170,866	$ 349,389

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - 3 months ended Sep. 30, 2015	USD ($)
Beginning Balance at Jun. 30, 2015	$ 73,236
Net Income (Loss)	41,518
Ending Balance at Sep. 30, 2015	$ 114,754

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Sep. 30, 2015
Summary of Significant Accounting Policies [Text Block]	6. RECENTLY ISSUED ACCOUNTING GUIDANCE (a) Revenue Recognition In August 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-14, "Revenue Recognition - Revenue from Contracts with Customers," which extended the effective date of a comprehensive revenue recognition standard that will supersede nearly all existing revenue recognition guidance under U.S. GAAP. The new standard will now be effective for interim and annual periods beginning after December 15, 2017, and either full retrospective adoption or modified retrospective adoption is permitted. The Company is evaluating the impact of this standard. (b) Going Concern In August 2014, the FASB issued ASU 2014-15 "Presentation of Financial Statements—Going Concern (Subtopic 205-40) (Topic 718): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern". This ASU requires an entity to evaluate whether conditions or events, in the aggregate, raise substantial doubt about the entity's ability to continue as a going concern for one year from the date the financial statements are issued or are available to be issued. The new guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2016. The adoption of this ASU is not expected to have an impact on the Company's consolidated financial position, results of operations or cash flows. (c) Disclosure of Discontinued Operations In April 2014, the FASB issued ASU 2014-08 “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”. The amendments in this Update improve the definition of discontinued operations by limiting discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entity’s operations and financial results. The adoption of this ASU is not expected to have an impact on the Company’s consolidated financial position, results of operations or cash flows. (d) Leases In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842 ” (“ASU 2016-02”), which requires lessees to put most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. The standard states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. Early adoption is permitted. We are currently evaluating the timing of our adoption and the impact that the updated standard will have on our consolidated financial statements. (e) Statement of Cash Flow In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, to address diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The amendments should be applied using a retrospective transition method to each period presented. If retrospective application is impractical for some of the issues addressed by the update, the amendments for those issues would be applied prospectively as of the earliest date practicable. Early adoption is permitted, including adoption in an interim period. The Company does not expect the adoption of ASU 2016-15 to have a material impact on its consolidated financial statements.

Inventories

Inventories	3 Months Ended
	Sep. 30, 2015
Inventories [Text Block]	4. INVENTORIES The table below summarizes information about reported components of inventory for as of September 30, 2015 and as of June 30, 2015: September 30, 2015 June 30, 2015 Raw Material $723,763 $984,376 Work in Process 1,300,668 1,398,258 Finished Goods - - Inventory $2,024,431 $2,382,634

Debt

Debt	3 Months Ended
	Sep. 30, 2015
Debt [Text Block]	5. DEBT Lines of Credit — Bank The Company had a line of credit agreement with the Signature Bank allowing borrowings up to $1,000,000, subject to certain borrowing base limitations, with interest at 2% over the reference rate with a floor of 7% ( 7% at June 30, 2015), matured in Aug, 2015. The reference rate was the rate announced by U.S. Bank National Association referred to as the “U.S. Bancorp Prime Lending Rate”. As of September 30, 2015 and June 30, 2015, the outstanding borrowings under this line of credit were $0 and $0 respectively. The proceeds could only be used to finance inventory destined for export outside the United States and to support performance bonds associated with related contract down payments. The note was secured by the foreign accounts receivable and export inventory of the Company’s wholly-owned subsidiary, Stinar HG, Inc., continuing commercial guarantees from the Company, the Chief Executive Officer and VP of Marketing and Sales and the assignment of a life insurance policy on the Chief Executive Officer. Long-term debt consisted of the following: September 30, 2015 June 30, 2015 Note payable — bank, payable in monthly installments of $6,672 including interest at 6.0% with a balloon payment in January 2023. The note is secured by the first mortgage on property owned by the Company, continuing commercial guarantees from both the Company and the chief executive officer/key stockholder and by the assignment of a life insurance policy on the chief executive officer/key stockholder. $858,674 $859,542 Note payable — SBA, payable in monthly installments of $20,503 including interest at the prime rate (as published by the Wall Street Journal) plus 1% adjusted every calendar quarter (4.25% at September 30, 2015), maturing in May 2018. The note is secured by the assets of the Company and the unconditional guarantee of the chief executive officer/key stockholder. 638,109 674,376 Note payable — SBA, payable in monthly installments of $5,107, including interest and SBA fees for an interest rate of 5.2%, maturing March 2033. The note is secured by a second mortgage on property owned by the Company and an unconditional guarantee from both the Company and the chief executive officer/key stockholder. 683,959 691,903 Note payable — bank, payable in monthly installments of $6,091 with interest at 2.75% over the U.S Bancorp Prime Lending Rate through February 2016. Effective June 2015, the interest rate is7.25% due to payment default in accordance with the terms of the note. The note is secured by the assets of the Company, the unconditional guarantee of the chief executive officer/key stockholder, and by the assignment of a life insurance policy on the chief executive officer/key stockholder. 29,974 47,497 Total Debt 2,210,716 2,273,318 Less current maturities 305,353 317,990 Long term Debt $1,905,363 $1,955,328 The Company’s credit agreements with its bank contain certain annual covenants, which were not met at June 30, 2013 and 2014, but which were subsequently waived by the bank. The covenants for June 2015 were not met and were not waived by the bank. However, due to the passage of time the notes have not been reclassified as due on demand as of June 30, 2015. The covenants for June 2016 were not met and were not waived by the bank. The next covenant calculation date will be June 30, 2017.

Earnings Per Common Share

Earnings Per Common Share	3 Months Ended
	Sep. 30, 2015
Earnings Per Common Share [Text Block]	2. EARNINGS PER COMMON SHARE Earnings per Common Share (EPS) are presented on both a basic and diluted basis in accordance with the provisions of Accounting Standards Codification Topic 260 - Earnings per Share. Basic EPS is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted EPS reflects the maximum dilution that would result after giving effect to dilutive convertible debentures. The following table presents the computation of basic and diluted EPS: Three Months Ended September 30, 2015 September 30, 2014, Net income $41,518 $15,043 Weighted -average common shares used in the computation of EPS Basic and diluted 1,431,503 1,431,503 Basic and diluted net income per share 0.03 0.01

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Sep. 30, 2015
BASIS OF PRESENTATION [Text Block]	1. BASIS OF PRESENTATION The accompanying Condensed Consolidated Financial Statements include the accounts of Oakridge Holdings, Inc. (the “Company”) and its wholly owned subsidiary. All significant intercompany transactions and balances have been eliminated. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, necessary to present such information fairly. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to Securities and Exchange Commission rules and regulations. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2015. Operating results for the three-month period ended September 30, 2015 may not necessarily be indicative of the results to be expected for any other interim period or for the full year. The preparation of financial statements in conformity with generally accepted accounting principles 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 revenues and expenses during the reporting period. The most significant estimates in the financial statements include, but are not limited to, accounts receivable and inventory reserves, investments, depreciation and accruals. Actual results could differ from those estimates.

COMPREHENSIVE INCOME (LOSS)

COMPREHENSIVE INCOME (LOSS)	3 Months Ended
	Sep. 30, 2015
COMPREHENSIVE INCOME (LOSS) [Text Block]	3. COMPREHENSIVE INCOME The Company has no significant components of other comprehensive income and accordingly, comprehensive income is the same as net income for all periods.

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Sep. 30, 2015
Schedule of Inventory, Current [Table Text Block]	September 30, 2015 June 30, 2015 Raw Material $723,763 $984,376 Work in Process 1,300,668 1,398,258 Finished Goods - - Inventory $2,024,431 $2,382,634

Debt (Tables)

Debt (Tables)	3 Months Ended
	Sep. 30, 2015
Schedule of Debt [Table Text Block]	September 30, 2015 June 30, 2015 Note payable — bank, payable in monthly installments of $6,672 including interest at 6.0% with a balloon payment in January 2023. The note is secured by the first mortgage on property owned by the Company, continuing commercial guarantees from both the Company and the chief executive officer/key stockholder and by the assignment of a life insurance policy on the chief executive officer/key stockholder. $858,674 $859,542 Note payable — SBA, payable in monthly installments of $20,503 including interest at the prime rate (as published by the Wall Street Journal) plus 1% adjusted every calendar quarter (4.25% at September 30, 2015), maturing in May 2018. The note is secured by the assets of the Company and the unconditional guarantee of the chief executive officer/key stockholder. 638,109 674,376 Note payable — SBA, payable in monthly installments of $5,107, including interest and SBA fees for an interest rate of 5.2%, maturing March 2033. The note is secured by a second mortgage on property owned by the Company and an unconditional guarantee from both the Company and the chief executive officer/key stockholder. 683,959 691,903 Note payable — bank, payable in monthly installments of $6,091 with interest at 2.75% over the U.S Bancorp Prime Lending Rate through February 2016. Effective June 2015, the interest rate is7.25% due to payment default in accordance with the terms of the note. The note is secured by the assets of the Company, the unconditional guarantee of the chief executive officer/key stockholder, and by the assignment of a life insurance policy on the chief executive officer/key stockholder. 29,974 47,497 Total Debt 2,210,716 2,273,318 Less current maturities 305,353 317,990 Long term Debt $1,905,363 $1,955,328

Earnings Per Common Share (Tabl

Earnings Per Common Share (Tables)	3 Months Ended
	Sep. 30, 2015
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended September 30, 2015 September 30, 2014, Net income $41,518 $15,043 Weighted -average common shares used in the computation of EPS Basic and diluted 1,431,503 1,431,503 Basic and diluted net income per share 0.03 0.01

Debt (Narrative) (Details)

Debt (Narrative) (Details)	3 Months Ended
	Sep. 30, 2015USD ($)
Debt 1	5
Debt 2	$ 1,000,000
Debt 3	2.00%
Debt 4	7.00%
Debt 5	7.00%

Schedule of Inventory, Current

Schedule of Inventory, Current (Details)	3 Months Ended
	Sep. 30, 2015USD ($)
Inventories Schedule Of Inventory, Current 1	$ 723,763
Inventories Schedule Of Inventory, Current 2	984,376
Inventories Schedule Of Inventory, Current 3	1,300,668
Inventories Schedule Of Inventory, Current 4	1,398,258
Inventories Schedule Of Inventory, Current 5	0
Inventories Schedule Of Inventory, Current 6	0
Inventories Schedule Of Inventory, Current 7	2,024,431
Inventories Schedule Of Inventory, Current 8	$ 2,382,634

Schedule of Debt (Details)

Schedule of Debt (Details)	3 Months Ended
	Sep. 30, 2015USD ($)
Debt Schedule Of Debt 1	$ 6,672
Debt Schedule Of Debt 2	6.00%
Debt Schedule Of Debt 3	$ 858,674
Debt Schedule Of Debt 4	859,542
Debt Schedule Of Debt 5	$ 20,503
Debt Schedule Of Debt 6	1.00%
Debt Schedule Of Debt 7	(4.25%)
Debt Schedule Of Debt 8	$ 638,109
Debt Schedule Of Debt 9	674,376
Debt Schedule Of Debt 10	$ 5,107
Debt Schedule Of Debt 11	5.20%
Debt Schedule Of Debt 12	$ 683,959
Debt Schedule Of Debt 13	691,903
Debt Schedule Of Debt 14	$ 6,091
Debt Schedule Of Debt 15	2.75%
Debt Schedule Of Debt 16	7.25%
Debt Schedule Of Debt 17	$ 29,974
Debt Schedule Of Debt 18	47,497
Debt Schedule Of Debt 19	2,210,716
Debt Schedule Of Debt 20	2,273,318
Debt Schedule Of Debt 21	305,353
Debt Schedule Of Debt 22	317,990
Debt Schedule Of Debt 23	1,905,363
Debt Schedule Of Debt 24	$ 1,955,328

Schedule of Earnings Per Share,

Schedule of Earnings Per Share, Basic and Diluted (Details)	3 Months Ended
	Sep. 30, 2015USD ($)
Earnings Per Common Share Schedule Of Earnings Per Share, Basic And Diluted 1	$ 41,518
Earnings Per Common Share Schedule Of Earnings Per Share, Basic And Diluted 2	15,043
Earnings Per Common Share Schedule Of Earnings Per Share, Basic And Diluted 3	1,431,503
Earnings Per Common Share Schedule Of Earnings Per Share, Basic And Diluted 4	$ 1,431,503
Earnings Per Common Share Schedule Of Earnings Per Share, Basic And Diluted 5	0.03
Earnings Per Common Share Schedule Of Earnings Per Share, Basic And Diluted 6	0.01