Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Sep. 30, 2014 | Nov. 07, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'QUALSTAR CORP | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--06-30 | ' |
Entity Common Stock, Shares Outstanding | ' | 12,253,117 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000758938 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2015 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $6,266 | $5,462 |
Marketable securities, short-term | 450 | 1,763 |
Accounts receivables, net of allowances of $92 at September 30, 2014, and at June 30, 2014 | 1,800 | 1,412 |
Inventories | 3,046 | 3,177 |
Prepaid expenses and other current assets | 401 | 241 |
Total current assets | 11,963 | 12,055 |
Property and equipment, net | 653 | 663 |
Other assets | 67 | 67 |
Total assets | 12,683 | 12,785 |
Accounts payable | 1,213 | 952 |
Accrued payroll and related liabilities | 341 | 322 |
Deferred service revenue, short term | 1,015 | 954 |
Other accrued liabilities | 1,085 | 1,174 |
Total current liabilities | 3,654 | 3,402 |
Other long term liabilities | 17 | 17 |
Deferred service revenue, long term | 173 | 243 |
Total long term liabilities | 190 | 260 |
Commitments and contingencies | ' | ' |
Shareholders’ equity: | ' | ' |
Preferred stock, no par value; 5,000 shares authorized; no shares issued | ' | ' |
Common stock, no par value; 50,000 shares authorized, 12,253 shares issued and outstanding as of September 30, 2014 and June 30, 2014 | 18,981 | 18,943 |
Accumulated other comprehensive income | 1 | 1 |
Accumulated deficit | -10,143 | -9,821 |
Total shareholders’ equity | 8,839 | 9,123 |
Total liabilities and shareholders’ equity | $12,683 | $12,785 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
In Thousands, except Per Share data, unless otherwise specified | ||
Receivable, allowance (in Dollars) | $92 | $92 |
Preferred stock, par value (in Dollars per share) | $0 | $0 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in Dollars per share) | $0 | $0 |
Common stock, shares authorized | 50,000 | 50,000 |
Common stock, shares issued | 12,253 | 12,253 |
Common stock, shares outstanding | 12,253 | 12,253 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) (USD $) | 3 Months Ended | |
Share data in Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Net revenues | $3,320,000 | $2,191,000 |
Cost of goods sold | 2,094,000 | 1,730,000 |
Gross profit | 1,226,000 | 461,000 |
Operating expenses: | ' | ' |
Engineering | 359,000 | 874,000 |
Sales and marketing | 505,000 | 733,000 |
General and administrative | 684,000 | 1,394,000 |
Total operating expenses | 1,548,000 | 3,001,000 |
Loss from operations | -322,000 | -2,540,000 |
Other income | ' | 13,000 |
Loss before income taxes | -322,000 | -2,527,000 |
Provision for income taxes | 0 | 0 |
Net loss | -322,000 | -2,527,000 |
Change in unrealized gains on investments | 0 | 10,000 |
Comprehensive loss | ($322,000) | ($2,517,000) |
Loss per common share: | ' | ' |
Basic and diluted (in Dollars per share) | ($0.03) | ($0.21) |
Weighted average common shares outstanding: | ' | ' |
Basic and diluted (in Shares) | 12,253 | 12,253 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
OPERATING ACTIVITIES: | ' | ' |
Net loss | ($322,000) | ($2,527,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 45,000 | 46,000 |
Loss on disposal of assets | 5,000 | ' |
Provision for inventory reserve and adjustments | -188,000 | -133,000 |
Stock based compensation | 38,000 | 4,000 |
Loss on sale of marketable securities | 9,000 | 0 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -387,000 | 943,000 |
Receivable from CTS for manufacturing inventories | ' | 644,000 |
Inventories | 319,000 | -1,050,000 |
Prepaid expenses and other current assets | -160,000 | 63,000 |
Accounts payable | 261,000 | 149,000 |
Accrued payroll and related liabilities | 19,000 | -92,000 |
Deferred service revenue | -9,000 | 334,000 |
Other accrued liabilities | -89,000 | -304,000 |
Total adjustments | -137,000 | 604,000 |
Net cash used in operating activities | -459,000 | -1,923,000 |
INVESTING ACTIVITIES: | ' | ' |
Purchases of equipment | -40,000 | -86,000 |
Proceeds from the sale of marketable securities | 1,303,000 | 1,688,000 |
Net cash provided by investing activities | 1,263,000 | 1,602,000 |
NET INCREASE(DECREASE) IN CASH AND CASH EQUIVALENTS | 804,000 | -321,000 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 5,462,000 | 1,966,000 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 6,266,000 | 1,645,000 |
SUPPLEMENTAL CASH FLOW DISCLOSURES: | ' | ' |
Income taxes paid | $0 | $0 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement of Shareholders’ Equity (Unaudited) (USD $) | Common Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Total |
Share data in Thousands | ||||
Balance at Jun. 30, 2014 | $18,943,000 | $1,000 | ($9,821,000) | $9,123,000 |
Shares balance (in Shares) at Jun. 30, 2014 | 12,253 | ' | ' | ' |
Share-based compensation | 38,000 | ' | ' | 38,000 |
Net loss | ' | ' | -322,000 | -322,000 |
Comprehensive loss | ' | ' | ' | -322,000 |
Balance at Sep. 30, 2014 | $18,981,000 | $1,000 | ($10,143,000) | $8,839,000 |
Shares balance (in Shares) at Sep. 30, 2014 | 12,253 | ' | ' | ' |
Note_1_Summary_of_Significant_
Note 1 - Summary of Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies [Text Block] | ' |
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | |
In the opinion of management, the accompanying unaudited condensed consolidated financial statements, including balance sheets and related interim statements of comprehensive loss, cash flows, and shareholders’ equity, include all adjustments, consisting primarily of normal recurring items, which are necessary for their fair presentation in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). | |
Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Examples include estimates of loss contingencies, product life cycles and inventory obsolescence, bad debts, sales returns, share-based compensation, forfeiture rates, the potential outcome of future tax consequences of events that have been recognized in our financial statements or tax returns, and determining when investment impairments are other-than-temporary. Actual results and outcomes may differ from management’s estimates and assumptions. | |
Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with information included in the Qualstar Corporation Annual Report on Form 10-K for the fiscal year ended June 30, 2014, filed with the U.S. Securities and Exchange Commission (“SEC”) on September 29, 2014. | |
Risks and Uncertainties | |
We are subject to a number of risks and uncertainties that may significantly impact our future operating results. These risks and uncertainties are discussed under Part II, Item 1A, “Risk Factors” included in this Form 10-Q. As our interim description of risks and uncertainties only includes any material changes to our annual description, we refer you to our risk factors previously disclosed in Item 1A of our Annual Report on Form 10-K for the fiscal year ended June 30, 2014, as filed with the SEC. | |
Revenue Recognition | |
We recognize revenue when there is persuasive evidence that an arrangement exists, title and risk of loss have passed, delivery has occurred or the services have been rendered, the sales price is fixed or determinable and collection of the related receivable is reasonably assured. Title and risk of loss generally pass to our customers upon shipment. In limited circumstances where either title or risk of loss pass upon destination or acceptance or when collection is not reasonably assured, we defer revenue recognition until such events occur. | |
Revenue for established products that have previously satisfied a customer’s acceptance requirements and provide for full payment tied to shipment is generally recognized upon shipment and passage of title. In limited cases where a prior history of customer acceptance cannot be demonstrated or sales where customer payment dates are not determinable or when collection is not reasonably assured, revenue is deferred until customer acceptance occurs or payment has been received. On the limited shipments where sales are not recognized, gross profit is generally recorded as deferred profit in our consolidated balance sheet representing the difference between the receivable recorded and the inventory shipped. | |
Deferred revenue is shown separately in the balance sheet, and deferred profit is included in other accrued liabilities in the balance sheet. At September 30, 2014, we had deferred revenue of approximately $1,188,000, and deferred profit of approximately $4,000. At June 30, 2014, we had deferred revenue of approximately $1,197,000 and deferred profit of approximately $8,000. | |
Marketable Securities | |
Marketable securities consist primarily of high-quality U.S. corporate securities, U.S. federal government debt securities, corporate and municipal bonds. Our marketable securities portfolio consists of short-term securities with original maturities of greater than three months from the date of purchase and remaining maturities of less than one year. Marketable securities are classified as “available-for-sale” and are recorded at fair value using the specific identification method; unrealized gains and losses are reflected in other comprehensive income until realized; realized gains and losses are included in earnings when the underlying securities are sold and are derived using the specific identification method for determining the cost of securities sold. If the credit ratings of the security issuers deteriorate or if market conditions deteriorate, we may be required to reduce the value of our investments through an impairment charge. | |
Fair Value of Financial Instruments | |
We measure fair value on all financial assets and liabilities and nonfinancial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least quarterly). See “Note 5 – Fair Value Measurements.” | |
Allowance for Doubtful Accounts | |
We estimate our allowance for doubtful accounts based on an assessment of the collectability of specific accounts and the overall condition of accounts receivable. In evaluating the adequacy of the allowance for doubtful accounts, we analyze specific trade receivables, historical bad debts, customer credits, customer credit-worthiness and changes in customers’ payment terms and patterns. If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make additional payments, then we may need to make additional allowances. Likewise, if we determine that we could realize more of our receivables in the future than previously estimated, we would adjust the allowance to increase income in the period we made this determination. | |
Inventory Valuation | |
We record inventories at the lower of cost or market value. We assess the value of our inventories periodically based upon numerous factors including expected product or material demand, current market conditions, technological obsolescence, current cost and net realizable value. If necessary, we write down our inventory for estimated obsolescence, potential shrinkage, or unmarketable inventory equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. If technology changes more rapidly than expected, or market conditions become less favorable than those projected by management, additional inventory write-downs may be required. | |
Warranty Obligations | |
We provide for the estimated cost of product warranties at the time revenue is recognized. We engage in extensive product quality programs and processes, including active monitoring and evaluation of product failure rates, material usage and estimation of service delivery costs incurred in correcting a product failure. However, should actual product failure rates, material usage, or service delivery costs differ from our estimates; revisions to the estimated warranty liability would be required. Historically our warranty costs have not been significant. | |
Legal and Other Contingencies | |
The outcomes of legal proceedings and claims brought against us are subject to significant uncertainty. An estimated loss from a loss contingency such as a legal proceeding or claim is accrued by a charge to income if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. When legal costs that the entity expects to incur in defending itself in connection with a loss contingency accrual are expected to be material, the loss should factor in all costs and, if the legal costs are reasonably estimable, they should be accrued in accordance with ASC 450, regardless of whether a liability can be estimated for the contingency itself. Disclosure of a contingency is required if there is at least a reasonable possibility that a loss has been incurred. Changes in these factors could materially impact our financial statements. We have accrued $244,000 for such contingencies. | |
Share-Based Compensation | |
Share-based compensation is accounted for in accordance with ASC 718, “Compensation – Stock Compensation.” We use the Black-Scholes option-pricing model to determine fair value of the award at the date of grant and recognize compensation expense over the vesting period. The inputs we use for the model require the use of judgment, estimates and assumptions regarding the expected volatility of the stock, the expected term the average employee will hold the option prior to the date of exercise, expected future dividends, and the amount of share-based awards that are expected to be forfeited. Changes in these inputs and assumptions could occur and actual results could differ from these estimates, and our results of operations could be impacted. | |
Accounting for Income Taxes | |
We estimate our tax liabilities based on current tax laws in the statutory jurisdictions in which we operate in accordance with ASC 740, “Income Taxes.” These estimates include judgments about deferred tax assets and liabilities resulting from temporary differences between assets and liabilities recognized for financial reporting purposes and such amounts recognized for tax purposes, as well as about the realization of deferred tax assets. We may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on derecognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and income tax disclosures. | |
We maintain a valuation allowance to reduce our deferred tax assets due to the uncertainty surrounding the timing of realizing the benefits of net deferred tax assets in future years. We have considered future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for such a valuation allowance. In the event we were to determine that we would be able to realize all or part of our net deferred tax asset in the future, the valuation allowance would be decreased accordingly. | |
We may periodically undergo examinations by the federal and state regulatory authorities and the Internal Revenue Service. We may be assessed additional taxes and/or penalties contingent on the outcome of these examinations. Our previous examinations have not resulted in any unfavorable or significant assessments. |
Note_2_Recent_Accounting_Prono
Note 2 - Recent Accounting Pronouncements | 3 Months Ended |
Sep. 30, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | ' |
NOTE 2 – RECENT ACCOUNTING PRONOUNCEMENTS | |
Recent accounting guidance not yet adopted | |
In March 2013, the FASB issued ASU 2013-05, which applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. The new guidance will be effective for us beginning July 1, 2015, and is not expected to impact our consolidated financial statements. | |
In July 2013, the FASB issued ASU 2013-11, which provides guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The new guidance will be effective for us beginning July 1, 2015, and is not expected to impact our consolidated financial statements. | |
In May 2014, the FASB issued ASU 2014-09 to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and IFRS that will remove inconsistencies and weaknesses in revenue requirements, provide a more robust framework for addressing revenue issues, improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets, provide more useful information to users of financial statements through improved disclosure requirements, and simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. The new guidance will be effective for us beginning July 1, 2015, and is not expected to impact our consolidated financial statements. | |
In June 2014, the FASB issued ASU 2014-12 to resolve the diverse accounting treatment of share-based payment awards that require specific performance targets to be achieved in order for employees to become eligible to vest in the awards. The new guidance will be effective for us beginning July 1, 2015, and is not expected to impact our consolidated financial statements. |
Note_3_Significant_Customers_C
Note 3 - Significant Customers, Concentration of Credit Risk, and Geographic Information | 3 Months Ended |
Sep. 30, 2014 | |
Risks and Uncertainties [Abstract] | ' |
Concentration Risk Disclosure [Text Block] | ' |
NOTE 3 – SIGNIFICANT CUSTOMERS, CONCENTRATION OF CREDIT RISK, AND GEOGRAPHIC INFORMATION | |
We are exposed to interest rate risks. Our investment income is sensitive to changes in the general level of U.S. interest rates, particularly since the majority of our investments are in shorter duration fixed income securities. We have no outstanding debt nor do we utilize auction rate securities or derivative financial instruments in our investment portfolio. | |
Our financial results could be affected by changes in foreign currency exchange rates or weak economic conditions in foreign markets. As all sales are currently made in U.S. dollars, a strengthening of the dollar could make our products less competitive in foreign markets. Sales within North America represented approximately 52.6% of net revenues in the three months ended September 30, 2014, and 61.2% of net revenues in the three months ended September 30, 2013. Sales outside North America represented approximately 47.4% of net revenues in the three months ended September 30, 2014, and 38.8% of net revenues in the three months ended September 30, 2013. | |
One customer accounted for 10.7% of the Company’s revenue for the three-month period ended September 30, 2014. The customer’s accounts receivable balance, totaled approximately 11.1% of net accounts receivable as of September 30, 2014. One customer accounted for 14.8% of the Company’s revenue for the three-month period ended September 30, 2013. The customer’s accounts receivable balances, totaled approximately 5.7% of net accounts receivable as of September 30, 2013. |
Note_4_Loss_Per_Share
Note 4 - Loss Per Share | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings Per Share [Text Block] | ' | ||||||||
NOTE 4 – LOSS PER SHARE | |||||||||
Basic loss per share has been computed by dividing net loss by the weighted average number of common shares outstanding. Diluted loss per share has not been computed as the effect is antidilutive. | |||||||||
The following table sets forth the computation of basic and diluted net loss per share for the periods indicated: | |||||||||
Three Months Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
In thousands (except per share amounts): | |||||||||
Net loss (a) | $ | (322 | ) | $ | (2,527 | ) | |||
Weighted average outstanding shares of common stock (b) | 12,253 | 12,253 | |||||||
Dilutive potential common shares from employee stock options | - | - | |||||||
Common stock and common stock equivalents (c) | 12,253 | 12,253 | |||||||
Loss per share: | |||||||||
Basic net loss per share (a)/(b) | $ | (0.03 | ) | $ | (0.21 | ) | |||
Diluted net loss per share (a)/(c) | $ | (0.03 | ) | (0.21 | ) | ||||
Note_5_Fair_Value_Measurements
Note 5 - Fair Value Measurements | 3 Months Ended |
Sep. 30, 2014 | |
Fair Value Disclosures [Abstract] | ' |
Fair Value Disclosures [Text Block] | ' |
NOTE 5 – FAIR VALUE MEASUREMENTS | |
Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: | |
Level 1 – Quoted prices in active markets for identical assets or liabilities. | |
Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated observable market data for substantially the full term of the assets or liabilities. | |
Level 3 – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. |
Note_6_Cash_Cash_Equivalents_a
Note 6 - Cash, Cash Equivalents and Marketable Securities Recorded at Fair Value | 3 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | ' | ||||||||||||||||||||||||
Cash and Cash Equivalents Disclosure [Text Block] | ' | ||||||||||||||||||||||||
NOTE 6 – CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES RECORDED AT FAIR VALUE | |||||||||||||||||||||||||
All highly liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents. The Company’s marketable debt securities have been classified and accounted for as available-for-sale. Management determines the appropriate classification of its investments at the time of purchase and re-evaluates the available-for-sale designations as of each balance sheet date. The Company classifies its marketable debt securities as either short-term or long-term based on each instrument’s underlying contractual maturity date. Marketable debt securities with maturities of 12 months or less are classified as short-term and marketable debt securities with maturities greater than 12 months are classified as long-term. | |||||||||||||||||||||||||
Available-for-sale securities are recorded at market value. Unrealized holding gains and losses, net of the related income tax effect, on available-for-sale securities are excluded from earnings and are reported as a separate component of shareholders’ equity until realized. Dividend and interest income are recognized when earned. Realized gains and losses for securities classified as available-for-sale are included in earnings when the underlying securities are sold and are derived using the specific identification method for determining the cost of securities sold. Realized loss on marketable securities for the three months ended September 30, 2014 was $9,000 and for the three months ended September 30, 2013 there was no loss. | |||||||||||||||||||||||||
The following tables summarize the Company’s available-for-sale securities’ adjusted cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as cash and cash equivalents or short-term marketable securities as of September 30, 2014 and June 30, 2014 (in thousands): | |||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||
Adjusted | Unrealized | Unrealized | Fair Value | Cash & | Short-term Marketable Securities | ||||||||||||||||||||
Cost | Gains | Losses | Cash | ||||||||||||||||||||||
Equivalents | |||||||||||||||||||||||||
Level 1: | |||||||||||||||||||||||||
Cash | 596 | - | - | 596 | 596 | - | |||||||||||||||||||
Money Market Funds | 5,670 | - | - | 5,670 | 5,670 | - | |||||||||||||||||||
Subtotal | $ | 6,266 | $ | - | $ | - | $ | 6,266 | $ | 6,266 | $ | - | |||||||||||||
Level 2: | |||||||||||||||||||||||||
Corporate securities | 399 | 1 | - | 400 | - | 400 | |||||||||||||||||||
Municipal securities | 50 | - | - | 50 | - | 50 | |||||||||||||||||||
Subtotal | $ | 449 | $ | 1 | $ | - | $ | 450 | $ | - | $ | 450 | |||||||||||||
Total | $ | 6,715 | $ | 1 | $ | - | $ | 6,716 | $ | 6,266 | $ | 450 | |||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
Adjusted | Unrealized Gains | Unrealized | Fair Value | Cash & | Short-term Marketable Securities | ||||||||||||||||||||
Cost | Losses | Cash | |||||||||||||||||||||||
Equivalents | |||||||||||||||||||||||||
Level 1: | - | ||||||||||||||||||||||||
Cash | 617 | - | - | 617 | 617 | - | |||||||||||||||||||
Money Market Funds | 4,845 | - | - | 4,845 | 4,845 | - | |||||||||||||||||||
Subtotal | $ | 5,462 | $ | - | $ | - | $ | 5,462 | $ | 5,462 | $ | - | |||||||||||||
Level 2: | |||||||||||||||||||||||||
U.S. Agency Securities | 332 | - | - | 332 | - | 332 | |||||||||||||||||||
Corporate securities | 1,354 | 1 | - | 1,355 | - | 1,355 | |||||||||||||||||||
Municipal securities | 76 | - | - | 76 | - | 76 | |||||||||||||||||||
Subtotal | $ | 1,762 | $ | 1 | $ | - | $ | 1,763 | - | $ | 1,763 | ||||||||||||||
Total | $ | 7,224 | $ | 1 | $ | - | $ | 7,225 | $ | 5,462 | $ | 1,763 | |||||||||||||
Note_7_Balance_Sheet_Details
Note 7 - Balance Sheet Details | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||
Supplemental Balance Sheet Disclosures [Text Block] | ' | ||||||||
NOTE 7 - BALANCE SHEET DETAILS | |||||||||
The following tables provide details of selected balance sheet accounts (in thousands): | |||||||||
Inventories | |||||||||
Inventories are stated at the lower of cost (first-in, first-out basis) or market. Inventories are comprised as follows (in thousands): | |||||||||
September 30, | June 30, | ||||||||
2014 | 2014 | ||||||||
Raw materials | $ | 2,937 | $ | 3,116 | |||||
Finished goods | 3,207 | 3,347 | |||||||
Subtotal | 6,144 | 6,463 | |||||||
Less: Inventory reserve | (3,098 | ) | (3,286 | ) | |||||
Net inventory balance | $ | 3,046 | $ | 3,177 | |||||
Other Accrued Liabilities | |||||||||
September 30, | June 30, | ||||||||
2014 | 2014 | ||||||||
Accrued sales tax | $ | 10 | $ | 17 | |||||
Accrued commissions | 68 | 48 | |||||||
Accrued audit fees | 87 | 88 | |||||||
Accrued marketing coop expenses | 27 | 28 | |||||||
Accrued legal expense | 244 | 251 | |||||||
Deferred rent | 72 | 83 | |||||||
Lease abandonment | 364 | 445 | |||||||
Accrued royalty | 49 | 45 | |||||||
Warranty reserve | 159 | 159 | |||||||
Other accruals | 5 | 10 | |||||||
Total other accrued liabilities | $ | 1,085 | $ | 1,174 | |||||
Costs related to the unused square footage under the current lease were expensed in prior periods. The lease abandonment liability relates to the remaining contractual lease through December 2015. |
Note_8_Commitments_and_Conting
Note 8 - Commitments and Contingencies | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||
Commitments and Contingencies Disclosure [Text Block] | ' | ||||||||
NOTE 8 – COMMITMENTS AND CONTINGENCIES | |||||||||
Accrued Warranty | |||||||||
We provide for the estimated costs of hardware warranties at the time the related revenue is recognized. We estimate the costs based on historical and projected product failure rates, historical and projected repair costs, and knowledge of specific product failures (if any). The specific hardware warranty terms and conditions for tape libraries generally include parts and labor over a three-year period. The warranty for power supplies generally is three years. We regularly re-evaluate our estimates to assess the adequacy of the recorded warranty liabilities and adjust the amounts as necessary. | |||||||||
Activity in the liability for product warranty, which is included in other accrued liabilities in the condensed balance sheets, for the periods presented, is as follows (in thousands): | |||||||||
Three Months Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Beginning balance | $ | 159 | $ | 190 | |||||
Cost of warranty claims | (14 | ) | (14 | ) | |||||
Accruals for product warranties | 14 | (2 | ) | ||||||
Ending balance | $ | 159 | $ | 174 | |||||
Note_9_Comprehensive_Loss
Note 9 - Comprehensive Loss | 3 Months Ended |
Sep. 30, 2014 | |
Disclosure Text Block [Abstract] | ' |
Comprehensive Income (Loss) Note [Text Block] | ' |
NOTE 9 – COMPREHENSIVE LOSS | |
For the three months ended September 30, 2014 and 2013, comprehensive loss amounted to approximately $322,000 and $2,517,000, respectively. There is no change between net loss and comprehensive loss for the three months ended September 30, 2014. For the three months ended September 30, 2013 net loss and comprehensive loss changed $10,000, which relates to the changes in the unrealized gains that the Company recorded for its available-for-sale marketable securities. |
Note_10_Stock_Based_Compensati
Note 10 -Stock Based Compensation | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||
NOTE 10 – STOCK BASED COMPENSATION | |||||||||
The Company recorded share-based compensation associated with outstanding stock options and restricted stock grants during the three months ended September 30, 2014 and September 30, 2013 of approximately $38,000 and $4,000, respectively. No income tax benefit was recognized in the statements of comprehensive loss for share-based arrangements in any period presented. | |||||||||
Stock Options | |||||||||
On August 8, 2014, in accordance with Mr. Bronson’s employment agreement for year ended June 30, 2014, the board of directors granted to Mr. Bronson stock options to purchase 100,000 shares of common stock with an exercise price of $1.23. The stock options granted are fully vested on the date of grant and have a term of five years, expiring on August 20, 2019, unless exercised sooner. As a result of the stock options issued to Mr. Bronson, the Company recognized $27,000 non- cash stock compensation expense in the three months ended September 30, 2014. | |||||||||
The Company did not grant any stock options during the three months ended September 30, 2013. | |||||||||
Restricted Stock Awards | |||||||||
The following table summarizes all restricted stock awards activity (in thousands, except per share amounts): | |||||||||
Restricted Stock Awards | Shares | Weighted | |||||||
Average | |||||||||
Fair Value | |||||||||
Price per | |||||||||
Share | |||||||||
Nonvested at June 30, 2014 | 100,000 | $ | 1.61 | ||||||
Granted (1) | — | — | |||||||
Vested | — | — | |||||||
Forfeited or expired | |||||||||
Nonvested at September 30, 2014 | 100,000 | $ | 1.61 | ||||||
-1 | Restricted stock was granted on April 1, 2014 to Daniel K. Jan of 100,000 shares to vest 33,333 on April 1, 2017; 33,333 to vest April 1, 2018 and 33,334 to vest April 1, 2019. The award is part of his employment agreement and the grant price is the closing price of the stock on April 1, 2014 of $1.61. The unvested shares are forfeited upon termination of his employment. | ||||||||
At June 30, 2014, the unrecognized compensation cost related to the non-vested share based compensation for restricted stock is $151,000. |
Note_11_Legal_Proceedings
Note 11 - Legal Proceedings | 3 Months Ended |
Sep. 30, 2014 | |
Disclosure Text Block Supplement [Abstract] | ' |
Legal Matters and Contingencies [Text Block] | ' |
NOTE 11 – LEGAL PROCEEDINGS | |
Overland Storage, Inc. | |
On June 28, 2012, Overland Storage, Inc. (“Overland”) filed a patent infringement lawsuit against Qualstar Corporation (and others) in the U.S. District Court in the Southern District of California, alleging that certain of our automated tape libraries infringe claims of U.S. Patent No. 6,328,766. The lawsuit is entitled: Overland Storage, Inc. (Plaintiff/Counterclaim Defendant) v. Qualstar Corporation (Defendant/Counterclaim Plaintiff), and assigned Case No. 12-cv-1605-JLS-BLM. Overland is seeking injunctive relief as well as the recovery of unspecified monetary damages. We do not believe we infringe the Overland patent and we intend to defend ourselves vigorously. Due to the inherent uncertainty of litigation, we cannot identify probable or estimable damages related to the lawsuit at this time. | |
Lawrence D. Firestone and others | |
On August 12, 2013, Qualstar filed a complaint against former Chief Executive Officer Lawrence D. Firestone and others for breach of fiduciary duty, breach of duty of loyalty, breach of duty of care and the commission of corporate waste that is currently pending in the Superior Court of the State of California, County of Los Angeles. The lawsuit is entitled: Qualstar Corporation v. Lawrence D. Firestone, Stanley Corker, Carl W. Gromada, Robert A. Meyer, Robert Rich, Daniel Molhoek, Allen Alley, Gerald Laber, Steven Wagner, and DOES 1 through 10, inclusive, and assigned Case No.: BC 514889. Qualstar is seeking to enjoin the payment of Defendant Firestone’s severance package and the recovery of monetary damages to be proven at trial. On April 17, 2014, Defendant Firestone filed a cross-complaint against Qualstar for wrongful termination of employment in breach of contract, employer’s breach of the implied covenant of good faith and fair dealing, breach of contract, and conversion. Due to the inherent uncertainty of litigation, we cannot identify probable or estimable damages related to the cross-complaint at this time. Also on April 17, 2014, Qualstar voluntarily withdrew its claims against Defendant Gerald Laber, without prejudice. On April 18, 2014, the Court denied motions filed by the remaining Defendants that had been seeking the dismissal of all causes of action against all Defendants. Subsequent to the April 18, 2014 hearing, Qualstar moved to dismiss the cross-complaint filed by Defendant Firestone. Defendants Allen Alley and Daniel Molhoek again moved to dismiss all causes of action against them in Qualstar’s complaint. The Court heard oral argument on both Qualstar’s and Mr. Alley’s and Mr. Molhoek’s demurrers on September 22, 2014. The Court overruled Mr. Alley’s and Mr. Molhoek’s demurrer seeking the dismissal of the claims alleged against them in Qualstar’s complaint. The Court granted Qualstar’s demurrer to Mr. Firestone’s cross-complaint in part, as to the claims for employer’s breach of the implied covenant of good faith and fair dealing and conversion, and denied it in part, as to the claim for wrongful termination of employment in breach of contract. All parties held a mediation session on October 9, 2014, in an attempt to resolve the claims set forth in both Qualstar’s Complaint and Defendant Lawrence D. Firestone’s Cross-Complaint. The discussions started thereat are ongoing. At this time, no evaluation can be made as to the likelihood of favorable or unfavorable outcome in this litigation, should it not be mutually resolved. Furthermore, due to the uncertainty of litigation, we cannot identify probable or estimable damages related to the lawsuit at this time. | |
On March 11, 2014, Qualstar filed a complaint against Needham & Company, LLC (“Needham”) entitled: Qualstar Corporation v. Needham & Company, LLC, pending in the Supreme Court of the State of New York, New York County and assigned index number 650773/14. Qualstar asserted claims against Needham for breach of contract, breach of the covenant of good faith and fair dealing, unjust enrichment and negligence based on Needham’s provision of financial advisory services to Qualstar, between January 2013 and February 2013, in connection with the unsolicited partial tender offer for Qualstar submitted by BKF Capital Group, Inc. Needham has moved to dismiss the complaint and the court has not yet ruled on Needham’s motion to dismiss. At this time no evaluation can be made as to the likelihood of a favorable or unfavorable outcome in this action. | |
We also are subject to a variety of other claims and legal proceedings that arise from time to time in the ordinary course of our business. Although management currently believes that resolving claims against us, individually or in the aggregate, will not have a material adverse impact on our financial statements, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future. We accrue loss contingencies in connection with our commitments and contingencies, including litigation, when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. As of September 30, 2014, we had accrued aggregate current liabilities of $244,000 in probable fees and costs related to our contingent legal matters. |
Note_12_Income_Taxes
Note 12 - Income Taxes | 3 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Tax Disclosure [Text Block] | ' |
NOTE 12 – INCOME TAXES | |
We did not record a provision or benefit for income taxes for the threee months ended September 30, 2014 and 2013. The Company has recorded a full valuation allowance against its net deferred tax assets based on the Company’s assessment regarding the realizability of these net deferred tax assets in future periods. |
Note_13_Segment_Information
Note 13 - Segment Information | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||
NOTE 13 – SEGMENT INFORMATION | |||||||||
In its operation of the business, management reviews certain financial information, including segmented internal profit and loss statements prepared on a basis consistent with U.S. GAAP. Our two segments are Power Supplies and Storage. The two segments discussed in this analysis are presented in the way we internally managed and monitored performance for the three months ended September 30, 2014 and 2013. Allocations for internal resources were made for the three months ended September 30, 2014 and 2013. The power supplies segment tracks certain assets separately, and all others are recorded in the storage segment for internal reporting presentations. The types of products and services provided by each segment are summarized below: | |||||||||
Power Supplies — We design, develop, and sell small, open frame, high efficiency switching power supplies. These power supplies are used to convert AC line voltage to DC voltages, or DC voltages to other DC voltages for use in a wide variety of electronic equipment such as telecommunications equipment, machine tools, routers, switches, wireless systems and gaming devices. | |||||||||
Data Storage — We design, develop and sell automated magnetic tape libraries used to store, retrieve and manage electronic data primarily in network computing environments. Tape libraries consist of cartridge tape drives, tape cartridges and robotics to move the cartridges from their storage locations to the tape drives under software control. Our tape libraries provide data storage solutions for organizations requiring backup, recovery and archival storage of critical data. | |||||||||
Segment revenue, loss before taxes and total assets were as follows (in thousands): | |||||||||
Three Months Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Revenue | |||||||||
Power Supplies | $ | 1,399 | $ | 953 | |||||
Data Storage: | |||||||||
Product | 1,367 | 824 | |||||||
Service | 554 | 414 | |||||||
Total data storage | $ | 1,921 | $ | 1,238 | |||||
Total revenue | $ | 3,320 | $ | 2,191 | |||||
Three Months Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Loss before Taxes | |||||||||
Power Supplies | $ | (269 | ) | $ | (318 | ) | |||
Data Storage | (53 | ) | (2,209 | ) | |||||
Total loss before taxes | $ | (322 | ) | $ | (2,527 | ) | |||
September 30, | June 30, | ||||||||
2014 | 2014 | ||||||||
Total Assets | |||||||||
Cash and marketable securities: | |||||||||
Cash and cash equivalents | $ | 6,266 | $ | 5,462 | |||||
Marketable securities | 450 | 1,763 | |||||||
Total cash and marketable securities | $ | 6,716 | $ | 7,225 | |||||
Other assets: | |||||||||
Power Supplies | 2,168 | 2,329 | |||||||
Data Storage | 3,799 | 3,231 | |||||||
Total other assets | $ | 5,967 | $ | 5,560 | |||||
Total assets | $ | 12,683 | $ | 12,785 | |||||
Note_14_Related_Party_Transact
Note 14 - Related Party Transactions | 3 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
NOTE 14 – RELATED PARTY TRANSACTIONS | |
The Company entered into a license agreement, dated May 1, 2014 (the “License Agreement”) with BKF Capital Group, Inc. (“BKF”). Pursuant to the License Agreement, commencing on May 1, 2014, BKF shall have a license to occupy and use one furnished office, telephone and other services, located at Qualstar’s executive offices. Pursuant to the License Agreement, BKF shall pay to Qualstar a license fee $1,200 per month. For the three months ended September 30, 2014, BFK paid $3,600 to Qualstar as license fees. Steven N. Bronson, the Company’s Chairman and CEO, is also the Chairman, CEO and majority shareholder of BKF. | |
The Company has agreed to reimburse Interlink Electronics, Inc.(“Interlink”), for expenses paid on behalf of the Company. Steven N. Bronson is also the Chairman and CEO and a majority shareholder of Interlink. For the three months ended September 30, 2014 the Company reimbursed Interlink $21,000, and Interlink reimbursed the Company $7,000 for such expenses. |
Note_15_Subsequent_Event
Note 15 - Subsequent Event | 3 Months Ended |
Sep. 30, 2014 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
NOTE 15 – SUBSEQUENT EVENTS | |
On October 8, 2014, the board of directors approved the issuance of a stock option to Steven N. Bronson to purchase 100,000 shares of Qualstar common stock at an exercise price of $1.27. The stock options shall vest on June 30, 2015 and have a term of five years, expiring on June 30, 2020. |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 3 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Accounting, Policy [Policy Text Block] | ' |
Basis of Presentation | |
In the opinion of management, the accompanying unaudited condensed consolidated financial statements, including balance sheets and related interim statements of comprehensive loss, cash flows, and shareholders’ equity, include all adjustments, consisting primarily of normal recurring items, which are necessary for their fair presentation in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). | |
Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses. Examples include estimates of loss contingencies, product life cycles and inventory obsolescence, bad debts, sales returns, share-based compensation, forfeiture rates, the potential outcome of future tax consequences of events that have been recognized in our financial statements or tax returns, and determining when investment impairments are other-than-temporary. Actual results and outcomes may differ from management’s estimates and assumptions. | |
Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with information included in the Qualstar Corporation Annual Report on Form 10-K for the fiscal year ended June 30, 2014, filed with the U.S. Securities and Exchange Commission (“SEC”) on September 29, 2014. | |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' |
Risks and Uncertainties | |
We are subject to a number of risks and uncertainties that may significantly impact our future operating results. These risks and uncertainties are discussed under Part II, Item 1A, “Risk Factors” included in this Form 10-Q. As our interim description of risks and uncertainties only includes any material changes to our annual description, we refer you to our risk factors previously disclosed in Item 1A of our Annual Report on Form 10-K for the fiscal year ended June 30, 2014, as filed with the SEC. | |
Revenue Recognition, Policy [Policy Text Block] | ' |
Revenue Recognition | |
We recognize revenue when there is persuasive evidence that an arrangement exists, title and risk of loss have passed, delivery has occurred or the services have been rendered, the sales price is fixed or determinable and collection of the related receivable is reasonably assured. Title and risk of loss generally pass to our customers upon shipment. In limited circumstances where either title or risk of loss pass upon destination or acceptance or when collection is not reasonably assured, we defer revenue recognition until such events occur. | |
Revenue for established products that have previously satisfied a customer’s acceptance requirements and provide for full payment tied to shipment is generally recognized upon shipment and passage of title. In limited cases where a prior history of customer acceptance cannot be demonstrated or sales where customer payment dates are not determinable or when collection is not reasonably assured, revenue is deferred until customer acceptance occurs or payment has been received. On the limited shipments where sales are not recognized, gross profit is generally recorded as deferred profit in our consolidated balance sheet representing the difference between the receivable recorded and the inventory shipped. | |
Deferred revenue is shown separately in the balance sheet, and deferred profit is included in other accrued liabilities in the balance sheet. At September 30, 2014, we had deferred revenue of approximately $1,188,000, and deferred profit of approximately $4,000. At June 30, 2014, we had deferred revenue of approximately $1,197,000 and deferred profit of approximately $8,000. | |
Marketable Securities, Policy [Policy Text Block] | ' |
Marketable Securities | |
Marketable securities consist primarily of high-quality U.S. corporate securities, U.S. federal government debt securities, corporate and municipal bonds. Our marketable securities portfolio consists of short-term securities with original maturities of greater than three months from the date of purchase and remaining maturities of less than one year. Marketable securities are classified as “available-for-sale” and are recorded at fair value using the specific identification method; unrealized gains and losses are reflected in other comprehensive income until realized; realized gains and losses are included in earnings when the underlying securities are sold and are derived using the specific identification method for determining the cost of securities sold. If the credit ratings of the security issuers deteriorate or if market conditions deteriorate, we may be required to reduce the value of our investments through an impairment charge. | |
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' |
Fair Value of Financial Instruments | |
We measure fair value on all financial assets and liabilities and nonfinancial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least quarterly). See “Note 5 – Fair Value Measurements.” | |
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | ' |
Allowance for Doubtful Accounts | |
We estimate our allowance for doubtful accounts based on an assessment of the collectability of specific accounts and the overall condition of accounts receivable. In evaluating the adequacy of the allowance for doubtful accounts, we analyze specific trade receivables, historical bad debts, customer credits, customer credit-worthiness and changes in customers’ payment terms and patterns. If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make additional payments, then we may need to make additional allowances. Likewise, if we determine that we could realize more of our receivables in the future than previously estimated, we would adjust the allowance to increase income in the period we made this determination. | |
Inventory, Policy [Policy Text Block] | ' |
Inventory Valuation | |
We record inventories at the lower of cost or market value. We assess the value of our inventories periodically based upon numerous factors including expected product or material demand, current market conditions, technological obsolescence, current cost and net realizable value. If necessary, we write down our inventory for estimated obsolescence, potential shrinkage, or unmarketable inventory equal to the difference between the cost of inventory and the estimated market value based upon assumptions about future demand and market conditions. If technology changes more rapidly than expected, or market conditions become less favorable than those projected by management, additional inventory write-downs may be required. | |
Standard Product Warranty, Policy [Policy Text Block] | ' |
Warranty Obligations | |
We provide for the estimated cost of product warranties at the time revenue is recognized. We engage in extensive product quality programs and processes, including active monitoring and evaluation of product failure rates, material usage and estimation of service delivery costs incurred in correcting a product failure. However, should actual product failure rates, material usage, or service delivery costs differ from our estimates; revisions to the estimated warranty liability would be required. Historically our warranty costs have not been significant. | |
Commitments and Contingencies, Policy [Policy Text Block] | ' |
Legal and Other Contingencies | |
The outcomes of legal proceedings and claims brought against us are subject to significant uncertainty. An estimated loss from a loss contingency such as a legal proceeding or claim is accrued by a charge to income if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. When legal costs that the entity expects to incur in defending itself in connection with a loss contingency accrual are expected to be material, the loss should factor in all costs and, if the legal costs are reasonably estimable, they should be accrued in accordance with ASC 450, regardless of whether a liability can be estimated for the contingency itself. Disclosure of a contingency is required if there is at least a reasonable possibility that a loss has been incurred. Changes in these factors could materially impact our financial statements. We have accrued $244,000 for such contingencies. | |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' |
Share-Based Compensation | |
Share-based compensation is accounted for in accordance with ASC 718, “Compensation – Stock Compensation.” We use the Black-Scholes option-pricing model to determine fair value of the award at the date of grant and recognize compensation expense over the vesting period. The inputs we use for the model require the use of judgment, estimates and assumptions regarding the expected volatility of the stock, the expected term the average employee will hold the option prior to the date of exercise, expected future dividends, and the amount of share-based awards that are expected to be forfeited. Changes in these inputs and assumptions could occur and actual results could differ from these estimates, and our results of operations could be impacted. | |
Income Tax, Policy [Policy Text Block] | ' |
Accounting for Income Taxes | |
We estimate our tax liabilities based on current tax laws in the statutory jurisdictions in which we operate in accordance with ASC 740, “Income Taxes.” These estimates include judgments about deferred tax assets and liabilities resulting from temporary differences between assets and liabilities recognized for financial reporting purposes and such amounts recognized for tax purposes, as well as about the realization of deferred tax assets. We may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. ASC 740 also provides guidance on derecognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and income tax disclosures. | |
We maintain a valuation allowance to reduce our deferred tax assets due to the uncertainty surrounding the timing of realizing the benefits of net deferred tax assets in future years. We have considered future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for such a valuation allowance. In the event we were to determine that we would be able to realize all or part of our net deferred tax asset in the future, the valuation allowance would be decreased accordingly. | |
We may periodically undergo examinations by the federal and state regulatory authorities and the Internal Revenue Service. We may be assessed additional taxes and/or penalties contingent on the outcome of these examinations. Our previous examinations have not resulted in any unfavorable or significant assessments. | |
New Accounting Pronouncements, Policy [Policy Text Block] | ' |
Recent accounting guidance not yet adopted | |
In March 2013, the FASB issued ASU 2013-05, which applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. The new guidance will be effective for us beginning July 1, 2015, and is not expected to impact our consolidated financial statements. | |
In July 2013, the FASB issued ASU 2013-11, which provides guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The new guidance will be effective for us beginning July 1, 2015, and is not expected to impact our consolidated financial statements. | |
In May 2014, the FASB issued ASU 2014-09 to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and IFRS that will remove inconsistencies and weaknesses in revenue requirements, provide a more robust framework for addressing revenue issues, improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets, provide more useful information to users of financial statements through improved disclosure requirements, and simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer. The new guidance will be effective for us beginning July 1, 2015, and is not expected to impact our consolidated financial statements. | |
In June 2014, the FASB issued ASU 2014-12 to resolve the diverse accounting treatment of share-based payment awards that require specific performance targets to be achieved in order for employees to become eligible to vest in the awards. The new guidance will be effective for us beginning July 1, 2015, and is not expected to impact our consolidated financial statements. |
Note_4_Loss_Per_Share_Tables
Note 4 - Loss Per Share (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||
Three Months Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
In thousands (except per share amounts): | |||||||||
Net loss (a) | $ | (322 | ) | $ | (2,527 | ) | |||
Weighted average outstanding shares of common stock (b) | 12,253 | 12,253 | |||||||
Dilutive potential common shares from employee stock options | - | - | |||||||
Common stock and common stock equivalents (c) | 12,253 | 12,253 | |||||||
Loss per share: | |||||||||
Basic net loss per share (a)/(b) | $ | (0.03 | ) | $ | (0.21 | ) | |||
Diluted net loss per share (a)/(c) | $ | (0.03 | ) | (0.21 | ) |
Note_6_Cash_Cash_Equivalents_a1
Note 6 - Cash, Cash Equivalents and Marketable Securities Recorded at Fair Value (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | ' | ||||||||||||||||||||||||
Available-for-sale Securities [Table Text Block] | ' | ||||||||||||||||||||||||
30-Sep-14 | |||||||||||||||||||||||||
Adjusted | Unrealized | Unrealized | Fair Value | Cash & | Short-term Marketable Securities | ||||||||||||||||||||
Cost | Gains | Losses | Cash | ||||||||||||||||||||||
Equivalents | |||||||||||||||||||||||||
Level 1: | |||||||||||||||||||||||||
Cash | 596 | - | - | 596 | 596 | - | |||||||||||||||||||
Money Market Funds | 5,670 | - | - | 5,670 | 5,670 | - | |||||||||||||||||||
Subtotal | $ | 6,266 | $ | - | $ | - | $ | 6,266 | $ | 6,266 | $ | - | |||||||||||||
Level 2: | |||||||||||||||||||||||||
Corporate securities | 399 | 1 | - | 400 | - | 400 | |||||||||||||||||||
Municipal securities | 50 | - | - | 50 | - | 50 | |||||||||||||||||||
Subtotal | $ | 449 | $ | 1 | $ | - | $ | 450 | $ | - | $ | 450 | |||||||||||||
Total | $ | 6,715 | $ | 1 | $ | - | $ | 6,716 | $ | 6,266 | $ | 450 | |||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
Adjusted | Unrealized Gains | Unrealized | Fair Value | Cash & | Short-term Marketable Securities | ||||||||||||||||||||
Cost | Losses | Cash | |||||||||||||||||||||||
Equivalents | |||||||||||||||||||||||||
Level 1: | - | ||||||||||||||||||||||||
Cash | 617 | - | - | 617 | 617 | - | |||||||||||||||||||
Money Market Funds | 4,845 | - | - | 4,845 | 4,845 | - | |||||||||||||||||||
Subtotal | $ | 5,462 | $ | - | $ | - | $ | 5,462 | $ | 5,462 | $ | - | |||||||||||||
Level 2: | |||||||||||||||||||||||||
U.S. Agency Securities | 332 | - | - | 332 | - | 332 | |||||||||||||||||||
Corporate securities | 1,354 | 1 | - | 1,355 | - | 1,355 | |||||||||||||||||||
Municipal securities | 76 | - | - | 76 | - | 76 | |||||||||||||||||||
Subtotal | $ | 1,762 | $ | 1 | $ | - | $ | 1,763 | - | $ | 1,763 | ||||||||||||||
Total | $ | 7,224 | $ | 1 | $ | - | $ | 7,225 | $ | 5,462 | $ | 1,763 |
Note_7_Balance_Sheet_Details_T
Note 7 - Balance Sheet Details (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Disclosure Text Block Supplement [Abstract] | ' | ||||||||
Schedule of Inventory, Current [Table Text Block] | ' | ||||||||
September 30, | June 30, | ||||||||
2014 | 2014 | ||||||||
Raw materials | $ | 2,937 | $ | 3,116 | |||||
Finished goods | 3,207 | 3,347 | |||||||
Subtotal | 6,144 | 6,463 | |||||||
Less: Inventory reserve | (3,098 | ) | (3,286 | ) | |||||
Net inventory balance | $ | 3,046 | $ | 3,177 | |||||
Schedule of Other Accrued Liabilities [Table Text Block] | ' | ||||||||
September 30, | June 30, | ||||||||
2014 | 2014 | ||||||||
Accrued sales tax | $ | 10 | $ | 17 | |||||
Accrued commissions | 68 | 48 | |||||||
Accrued audit fees | 87 | 88 | |||||||
Accrued marketing coop expenses | 27 | 28 | |||||||
Accrued legal expense | 244 | 251 | |||||||
Deferred rent | 72 | 83 | |||||||
Lease abandonment | 364 | 445 | |||||||
Accrued royalty | 49 | 45 | |||||||
Warranty reserve | 159 | 159 | |||||||
Other accruals | 5 | 10 | |||||||
Total other accrued liabilities | $ | 1,085 | $ | 1,174 |
Note_8_Commitments_and_Conting1
Note 8 - Commitments and Contingencies (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||
Schedule of Product Warranty Liability [Table Text Block] | ' | ||||||||
Three Months Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Beginning balance | $ | 159 | $ | 190 | |||||
Cost of warranty claims | (14 | ) | (14 | ) | |||||
Accruals for product warranties | 14 | (2 | ) | ||||||
Ending balance | $ | 159 | $ | 174 |
Note_10_Stock_Based_Compensati1
Note 10 -Stock Based Compensation (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | ' | ||||||||
Restricted Stock Awards | Shares | Weighted | |||||||
Average | |||||||||
Fair Value | |||||||||
Price per | |||||||||
Share | |||||||||
Nonvested at June 30, 2014 | 100,000 | $ | 1.61 | ||||||
Granted (1) | — | — | |||||||
Vested | — | — | |||||||
Forfeited or expired | |||||||||
Nonvested at September 30, 2014 | 100,000 | $ | 1.61 |
Note_13_Segment_Information_Ta
Note 13 - Segment Information (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Note 13 - Segment Information (Tables) [Line Items] | ' | ||||||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | ' | ||||||||
Three Months Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Revenue | |||||||||
Power Supplies | $ | 1,399 | $ | 953 | |||||
Data Storage: | |||||||||
Product | 1,367 | 824 | |||||||
Service | 554 | 414 | |||||||
Total data storage | $ | 1,921 | $ | 1,238 | |||||
Total revenue | $ | 3,320 | $ | 2,191 | |||||
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | ' | ||||||||
September 30, | June 30, | ||||||||
2014 | 2014 | ||||||||
Total Assets | |||||||||
Cash and marketable securities: | |||||||||
Cash and cash equivalents | $ | 6,266 | $ | 5,462 | |||||
Marketable securities | 450 | 1,763 | |||||||
Total cash and marketable securities | $ | 6,716 | $ | 7,225 | |||||
Other assets: | |||||||||
Power Supplies | 2,168 | 2,329 | |||||||
Data Storage | 3,799 | 3,231 | |||||||
Total other assets | $ | 5,967 | $ | 5,560 | |||||
Total assets | $ | 12,683 | $ | 12,785 | |||||
(Loss) Income Before Taxes By Segment [Member] | ' | ||||||||
Note 13 - Segment Information (Tables) [Line Items] | ' | ||||||||
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated [Table Text Block] | ' | ||||||||
Three Months Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Loss before Taxes | |||||||||
Power Supplies | $ | (269 | ) | $ | (318 | ) | |||
Data Storage | (53 | ) | (2,209 | ) | |||||
Total loss before taxes | $ | (322 | ) | $ | (2,527 | ) |
Note_1_Summary_of_Significant_1
Note 1 - Summary of Significant Accounting Policies (Details) (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
Accounting Policies [Abstract] | ' | ' |
Deferred Revenue | $1,188,000 | $1,197,000 |
Deferred Profit | 4,000 | 8,000 |
Loss Contingency, Estimate of Possible Loss | $244,000 | ' |
Note_3_Significant_Customers_C1
Note 3 - Significant Customers, Concentration of Credit Risk, and Geographic Information (Details) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Customer 1 [Member] | Sales Revenue, Net [Member] | ' | ' |
Note 3 - Significant Customers, Concentration of Credit Risk, and Geographic Information (Details) [Line Items] | ' | ' |
Concentration Risk, Percentage | 10.70% | 14.80% |
Number Of Major Customers, Concentration Risk | 1 | 1 |
Customer 1 [Member] | Accounts Receivable [Member] | ' | ' |
Note 3 - Significant Customers, Concentration of Credit Risk, and Geographic Information (Details) [Line Items] | ' | ' |
Concentration Risk, Percentage | 11.10% | 5.70% |
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | North America [Member] | ' | ' |
Note 3 - Significant Customers, Concentration of Credit Risk, and Geographic Information (Details) [Line Items] | ' | ' |
Concentration Risk, Percentage | 52.60% | 61.20% |
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | Outside North America [Member] | ' | ' |
Note 3 - Significant Customers, Concentration of Credit Risk, and Geographic Information (Details) [Line Items] | ' | ' |
Concentration Risk, Percentage | 47.40% | 38.80% |
Note_4_Loss_Per_Share_Details_
Note 4 - Loss Per Share (Details) - Computation of Basic and Diluted Net Loss Per Share (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Computation of Basic and Diluted Net Loss Per Share [Abstract] | ' | ' |
Net loss (a) (in Dollars) | ($322) | ($2,527) |
Weighted average outstanding shares of common stock (b) | 12,253 | 12,253 |
Dilutive potential common shares from employee stock options | 0 | 0 |
Common stock and common stock equivalents (c) | 12,253 | 12,253 |
Basic net loss per share (a)/(b) (in Dollars per share) | ($0.03) | ($0.21) |
Diluted net loss per share (a)/(c) (in Dollars per share) | ($0.03) | ($0.21) |
Note_6_Cash_Cash_Equivalents_a2
Note 6 - Cash, Cash Equivalents and Marketable Securities Recorded at Fair Value (Details) (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Cash and Cash Equivalents [Abstract] | ' | ' |
Marketable Securities, Realized Gain (Loss) | ($9,000) | $0 |
Note_6_Cash_Cash_Equivalents_a3
Note 6 - Cash, Cash Equivalents and Marketable Securities Recorded at Fair Value (Details) - Summary of Available-For-Sale Securities (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 |
Level 1: | ' | ' |
Adjusted Cost | $6,715 | $7,224 |
Unrealized Gains | 1 | 1 |
Fair Value | 6,716 | 7,225 |
Cash & Cash Equivalents | 6,266 | 5,462 |
Short-term Marketable Securities | 450 | 1,763 |
Fair Value, Inputs, Level 1 [Member] | Cash [Member] | ' | ' |
Level 1: | ' | ' |
Adjusted Cost | 596 | 617 |
Fair Value | 596 | 617 |
Cash & Cash Equivalents | 596 | 617 |
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | ' | ' |
Level 1: | ' | ' |
Adjusted Cost | 5,670 | 4,845 |
Fair Value | 5,670 | 4,845 |
Cash & Cash Equivalents | 5,670 | 4,845 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Level 1: | ' | ' |
Adjusted Cost | 6,266 | 5,462 |
Fair Value | 6,266 | 5,462 |
Cash & Cash Equivalents | 6,266 | 5,462 |
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | ' | ' |
Level 1: | ' | ' |
Adjusted Cost | 399 | 1,354 |
Unrealized Gains | 1 | 1 |
Fair Value | 400 | 1,355 |
Short-term Marketable Securities | 400 | 1,355 |
Fair Value, Inputs, Level 2 [Member] | US States and Political Subdivisions Debt Securities [Member] | ' | ' |
Level 1: | ' | ' |
Adjusted Cost | 50 | 76 |
Fair Value | 50 | 76 |
Short-term Marketable Securities | 50 | 76 |
Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member] | ' | ' |
Level 1: | ' | ' |
Adjusted Cost | ' | 332 |
Fair Value | ' | 332 |
Short-term Marketable Securities | ' | 332 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Level 1: | ' | ' |
Adjusted Cost | 449 | 1,762 |
Unrealized Gains | 1 | 1 |
Fair Value | 450 | 1,763 |
Short-term Marketable Securities | $450 | $1,763 |
Note_7_Balance_Sheet_Details_D
Note 7 - Balance Sheet Details (Details) - Inventories at Lower of FIFO Cost or Market (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Inventories at Lower of FIFO Cost or Market [Abstract] | ' | ' |
Raw materials | $2,937 | $3,116 |
Finished goods | 3,207 | 3,347 |
Subtotal | 6,144 | 6,463 |
Less: Inventory reserve | -3,098 | -3,286 |
Net inventory balance | $3,046 | $3,177 |
Note_7_Balance_Sheet_Details_D1
Note 7 - Balance Sheet Details (Details) - Other Accrued Liabilities (USD $) | Sep. 30, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Note 7 - Balance Sheet Details (Details) - Other Accrued Liabilities [Line Items] | ' | ' |
Accrued sales tax | $10 | $17 |
Accrued commissions | 68 | 48 |
Deferred rent | 72 | 83 |
Lease abandonment | 364 | 445 |
Accrued royalty | 49 | 45 |
Warranty reserve | 159 | 159 |
Other accruals | 5 | 10 |
Total other accrued liabilities | 1,085 | 1,174 |
Accrued marketing coop expenses | 27 | 28 |
Accrued Audit [Member] | ' | ' |
Note 7 - Balance Sheet Details (Details) - Other Accrued Liabilities [Line Items] | ' | ' |
Accrued professional fees | 87 | 88 |
Accrued Contingent Legal Fees [Member] | ' | ' |
Note 7 - Balance Sheet Details (Details) - Other Accrued Liabilities [Line Items] | ' | ' |
Accrued professional fees | $244 | $251 |
Note_8_Commitments_and_Conting2
Note 8 - Commitments and Contingencies (Details) - Product Warranty Liability (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Product Warranty Liability [Abstract] | ' | ' |
Beginning balance | $159 | $190 |
Cost of warranty claims | -14 | -14 |
Accruals for product warranties | 14 | -2 |
Ending balance | $159 | $174 |
Note_9_Comprehensive_Loss_Deta
Note 9 - Comprehensive Loss (Details) (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Disclosure Text Block [Abstract] | ' | ' |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | ($322,000) | ($2,517,000) |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | $0 | $10,000 |
Note_10_Stock_Based_Compensati2
Note 10 -Stock Based Compensation (Details) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | |||||||
Sep. 30, 2014 | Sep. 30, 2013 | Apr. 01, 2014 | Aug. 08, 2014 | Sep. 30, 2014 | Apr. 01, 2014 | Apr. 01, 2017 | Apr. 01, 2018 | Apr. 01, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Aug. 08, 2014 | ||
Employee Stock Option [Member] | Employee Stock Option [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Chief Executive Officer [Member] | |||||
Chief Executive Officer [Member] | Chief Executive Officer [Member] | Share-based Compensation Award, Tranche One [Member] | Share-based Compensation Award, Tranche Two [Member] | Share-based Compensation Award, Tranche Three [Member] | Executive Vice President [Member] | ||||||||
Executive Vice President [Member] | Executive Vice President [Member] | Executive Vice President [Member] | |||||||||||
Note 10 -Stock Based Compensation (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Allocated Share-based Compensation Expense | $38,000 | $4,000 | ' | ' | $27,000 | ' | ' | ' | ' | ' | ' | ' | |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.23 | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | [1] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | ' | ' | ' | ' | ' | 33,333 | 33,333 | 33,334 | ' | ' | ' | ' | |
Share Price | ' | ' | $1.61 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $151,000 | ' | |
[1] | Restricted stock was granted on April 1, 2014 to Daniel K. Jan of 100,000 shares to vest 33,333 on April 1, 2017; 33,333 to vest April 1, 2018 and 33,334 to vest April 1, 2019. The award is part of his employment agreement and the grant price is the closing price of the stock on April 1, 2014 of $1.61. The unvested shares are forfeited upon termination of his employment. |
Note_10_Stock_Based_Compensati3
Note 10 -Stock Based Compensation (Details) - Restricted Stock Awards Activity (Restricted Stock [Member], USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | |
Restricted Stock [Member] | ' | |
Note 10 -Stock Based Compensation (Details) - Restricted Stock Awards Activity [Line Items] | ' | |
Nonvested at June 30, 2014 | 100,000 | |
Nonvested at June 30, 2014 | $1.61 | |
Granted (1) | ' | [1] |
Granted (1) | ' | [1] |
Nonvested at September 30, 2014 | 100,000 | |
Nonvested at September 30, 2014 | $1.61 | |
[1] | Restricted stock was granted on April 1, 2014 to Daniel K. Jan of 100,000 shares to vest 33,333 on April 1, 2017; 33,333 to vest April 1, 2018 and 33,334 to vest April 1, 2019. The award is part of his employment agreement and the grant price is the closing price of the stock on April 1, 2014 of $1.61. The unvested shares are forfeited upon termination of his employment. |
Note_11_Legal_Proceedings_Deta
Note 11 - Legal Proceedings (Details) (USD $) | Sep. 30, 2014 |
Disclosure Text Block Supplement [Abstract] | ' |
Loss Contingency, Accrual, Current | $244,000 |
Note_12_Income_Taxes_Details
Note 12 - Income Taxes (Details) (USD $) | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' |
Income Tax Expense (Benefit) | $0 | $0 |
Note_13_Segment_Information_De
Note 13 - Segment Information (Details) | 3 Months Ended |
Sep. 30, 2014 | |
Segment Reporting [Abstract] | ' |
Number of Reportable Segments | 2 |
Note_13_Segment_Information_De1
Note 13 - Segment Information (Details) - Segment Revenue (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Revenue | $3,320 | $2,191 |
Power Supplies [Member] | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Revenue | 1,399 | 953 |
Tape Libraries [Member] | Product [Member] | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Revenue | 1,367 | 824 |
Tape Libraries [Member] | Service [Member] | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Revenue | 554 | 414 |
Tape Libraries [Member] | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' |
Revenue | $1,921 | $1,238 |
Note_13_Segment_Information_De2
Note 13 - Segment Information (Details) - (Loss) Income Before Taxes by Segment (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Loss before Taxes | ' | ' |
(Loss) Income Before Taxes | ($322) | ($2,527) |
Power Supplies [Member] | ' | ' |
Loss before Taxes | ' | ' |
(Loss) Income Before Taxes | -269 | -318 |
Tape Libraries [Member] | ' | ' |
Loss before Taxes | ' | ' |
(Loss) Income Before Taxes | ($53) | ($2,209) |
Note_13_Segment_Information_De3
Note 13 - Segment Information (Details) - Total Assets by Segment (USD $) | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||||
Cash and marketable securities: | ' | ' | ' | ' |
Cash and cash equivalents | $6,266 | $5,462 | $1,645 | $1,966 |
Marketable securities | 450 | 1,763 | ' | ' |
Total cash and marketable securities | 6,716 | 7,225 | ' | ' |
Other assets: | ' | ' | ' | ' |
Total other assets | 5,967 | 5,560 | ' | ' |
Total assets | 12,683 | 12,785 | ' | ' |
Power Supplies [Member] | ' | ' | ' | ' |
Other assets: | ' | ' | ' | ' |
Power Supplies and Tape Libraries | 2,168 | 2,329 | ' | ' |
Tape Libraries [Member] | ' | ' | ' | ' |
Other assets: | ' | ' | ' | ' |
Power Supplies and Tape Libraries | $3,799 | $3,231 | ' | ' |
Note_14_Related_Party_Transact1
Note 14 - Related Party Transactions (Details) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2014 | 2-May-14 | Sep. 30, 2014 | |
Interlink Electronics, Inc. [Member] | Interlink Electronics, Inc. [Member] | Per Month [Member] | License Agreement [Member] | |
Reimbursement of Expenses Paid by Company[Member] | Reimbursement of Expenses Paid to Company [Member] | License Agreement [Member] | ||
Note 14 - Related Party Transactions (Details) [Line Items] | ' | ' | ' | ' |
Operating Leases, Income Statement, Sublease Revenue | ' | ' | $1,200 | ' |
Related Party Transaction, Expenses from Transactions with Related Party | ' | ' | ' | 3,600 |
Related Party Transaction, Amounts of Transaction | $21,000 | ($7,000) | ' | ' |
Note_15_Subsequent_Event_Detai
Note 15 - Subsequent Event (Details) (USD $) | 3 Months Ended | 0 Months Ended | |||
Sep. 30, 2013 | Oct. 08, 2014 | Aug. 08, 2014 | Oct. 08, 2014 | Aug. 08, 2014 | |
Employee Stock Option [Member] | Employee Stock Option [Member] | Subsequent Event [Member] | Chief Executive Officer [Member] | ||
Subsequent Event [Member] | Chief Executive Officer [Member] | Chief Executive Officer [Member] | |||
Chief Executive Officer [Member] | |||||
Note 15 - Subsequent Event (Details) [Line Items] | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | ' | ' | 100,000 | 100,000 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | ' | ' | ' | $1.27 | $1.23 |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | ' | '5 years | '5 years | ' | ' |