Document_And_Entity_Informatio
Document And Entity Information | 6 Months Ended | |
Dec. 31, 2014 | Jan. 29, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | QUALSTAR CORP | |
Document Type | 10-Q | |
Current Fiscal Year End Date | -24 | |
Entity Common Stock, Shares Outstanding | 12,253,117 | |
Amendment Flag | FALSE | |
Entity Central Index Key | 758938 | |
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 | 31-Dec-14 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q2 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) (USD $) | Dec. 31, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $5,242 | $5,462 |
Marketable securities | 1,763 | |
Accounts receivables, net of allowances of $73 at December 31, 2014, and $92 at June 30, 2014 | 2,625 | 1,412 |
Inventories | 3,069 | 3,177 |
Prepaid expenses and other current assets | 351 | 241 |
Total current assets | 11,287 | 12,055 |
Property and equipment, net | 628 | 663 |
Other assets | 43 | 67 |
Total assets | 11,958 | 12,785 |
Current liabilities: | ||
Accounts payable | 1,262 | 952 |
Accrued payroll and related liabilities | 348 | 322 |
Deferred service revenue, short term | 1,049 | 954 |
Other accrued liabilities | 508 | 1,174 |
Total current liabilities | 3,167 | 3,402 |
Other long term liabilities | 18 | 17 |
Deferred service revenue, long term | 162 | 243 |
Total long term liabilities | 180 | 260 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Preferred stock, no par value; 5,000 shares authorized; no shares issued | 0 | 0 |
Common stock, no par value; 50,000 shares authorized, 12,253 shares issued and outstanding as of December 31, 2014 and June 30, 2014 | 18,999 | 18,943 |
Accumulated other comprehensive income | 1 | |
Accumulated deficit | -10,388 | -9,821 |
Total shareholders’ equity | 8,611 | 9,123 |
Total liabilities and shareholders’ equity | $11,958 | $12,785 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) | Dec. 31, 2014 | Jun. 30, 2014 |
In Thousands, except Per Share data, unless otherwise specified | ||
Accounts Receivables, allowances (in Dollars) | $73 | $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 | 6 Months Ended | ||
Share data in Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Net revenues | $3,528,000 | $3,440,000 | $6,848,000 | $5,631,000 |
Cost of goods sold | 2,428,000 | 1,931,000 | 4,522,000 | 3,661,000 |
Gross profit | 1,100,000 | 1,509,000 | 2,326,000 | 1,970,000 |
Operating expenses: | ||||
Engineering | 326,000 | 604,000 | 685,000 | 1,478,000 |
Sales and marketing | 591,000 | 512,000 | 1,096,000 | 1,245,000 |
General and administrative | 684,000 | 623,000 | 1,368,000 | 2,017,000 |
Restructuring | -245,000 | 26,000 | -245,000 | 26,000 |
Total operating expenses | 1,356,000 | 1,765,000 | 2,904,000 | 4,766,000 |
Loss from operations | -256,000 | -256,000 | -578,000 | -2,796,000 |
Other income | 11,000 | 5,000 | 11,000 | 18,000 |
Loss before income taxes | -245,000 | -251,000 | -567,000 | -2,778,000 |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net loss | -245,000 | -251,000 | -567,000 | -2,778,000 |
Change in unrealized (losses) gains on investments | -4,000 | -1,000 | 6,000 | |
Comprehensive loss | ($245,000) | ($255,000) | ($568,000) | ($2,772,000) |
Loss per common share: | ||||
Basic and Diluted (in Dollars per share) | ($0.02) | ($0.02) | ($0.05) | ($0.23) |
Weighted average common shares outstanding: | ||||
Basic and Diluted (in Shares) | 12,253 | 12,253 | 12,253 | 12,253 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
OPERATING ACTIVITIES: | ||
Net loss | ($567,000) | ($2,778,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 104,000 | 91,000 |
Loss on disposal of assets | 5,000 | 4,000 |
Provision for bad debts and returns, net | -19,000 | 7,000 |
Provision for inventory reserve and adjustments | -287,000 | -60,000 |
Share based compensation | 56,000 | -6,000 |
Loss on sale of marketable securities | 8,000 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | -1,193,000 | 489,000 |
Receivable from CTS for manufacturing inventories | 644,000 | |
Inventories | 395,000 | -1,031,000 |
Prepaid expenses and other current assets | -86,000 | 63,000 |
Accounts payable | 310,000 | -449,000 |
Accrued payroll and related liabilities | 26,000 | -217,000 |
Deferred service revenue | 14,000 | |
Other accrued liabilities | -665,000 | -75,000 |
Total adjustments | -1,332,000 | -540,000 |
Net cash used in operating activities | -1,899,000 | -3,318,000 |
INVESTING ACTIVITIES: | ||
Purchases of equipment | -74,000 | -89,000 |
Proceeds from the sale of marketable securities | 1,753,000 | 3,363,000 |
Net cash provided by investing activities | 1,679,000 | 3,274,000 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | -220,000 | -44,000 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 5,462,000 | 1,966,000 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 5,242,000 | 1,922,000 |
SUPPLEMENTAL CASH FLOW DISCLOSURES: | ||
Income taxes paid | $0 | $2,000 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement of Changes in Shareholders’ Equity (Unaudited) (USD $) | Common Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] | Total |
Share data in Thousands | ||||
Balance at June 30, 2014 at Jun. 30, 2014 | $18,943,000 | $1,000 | ($9,821,000) | $9,123,000 |
Balance at June 30, 2014 (in Shares) at Jun. 30, 2014 | 12,253 | |||
Share-based compensation | 56,000 | 56,000 | ||
Change in unrealized gains on investments | -1,000 | -1,000 | ||
Net loss | -567,000 | -567,000 | ||
Comprehensive loss | -568,000 | |||
Balance at December 31, 2014 at Dec. 31, 2014 | $18,999,000 | ($10,388,000) | $8,611,000 | |
Balance at December 31, 2014 (in Shares) at Dec. 31, 2014 | 12,253 |
Note_1_Summary_of_Significant_
Note 1 - Summary of Significant Accounting Policies | 6 Months Ended |
Dec. 31, 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. | |
The consolidated financial statements include our accounts and the accounts of our wholly-owned subisidiary in Singapore. All significant intercompany accounts and transactions have been eliminated in consolidation. | |
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 December 31, 2014, we had deferred revenue of approximately $1,211,000, and no deferred profit. 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, then 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 $48,000 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 | 6 Months Ended |
Dec. 31, 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, 2017, and the Company is in the process of determining the potential impact and to 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, 2016, and is not expected to impact our consolidated financial statements. | |
In August 2014, the FASB issued ASU 2014-15, This standard sets forth management’s responsibility to evaluate, each reporting period, whether there is substantial doubt about our ability to continue as a going concern, and if so, to provide related footnote disclosures. The standard is effective for annual reporting periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016. We are currently evaluating this new standard and after adoption, we will incorporate this guidance in our assessment of going concern. |
Note_3_Significant_Customers_C
Note 3 - Significant Customers, Concentration of Credit Risk, and Geographic Information | 6 Months Ended |
Dec. 31, 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. 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 outside North America represented approximately 54.9% of net revenues in the three months ended December 31, 2014, and 41.2% of net revenues in the three months ended December 31, 2013. Sales outside North America represented approximately 51.3% of net revenues in the six months ended December 31, 2014, and 40.3% of net revenues in the six months ended December 31, 2013. | |
Two customers accounted for 14.4% and 10.4% of the Company’s net revenue for the three month period ended December 31, 2014. The customers’ accounts receivable balance totaled approximately 31.1% and 7.9%, respectively, of net accounts receivable as of December 31, 2014. Two customers accounted for 15.1% and 10.5% of the Company’s net revenue for the three month period ended December 31, 2013. The customers’ accounts receivable balances totaled approximately 10.1% and 17.0%, respectively, of net accounts receivable as of December 31, 2013. | |
Two customers accounted for 11.9% and 10.6% of the Company’s net revenue for the six month period ended December 31, 2014. The customers’ accounts receivable balance, totaled approximately 31.1% and 7.9%, respectively, of net accounts receivable as of December 31, 2014. Two customers accounted for 15.0% and 9.5% of the Company’s net revenue for the six month period ended December 31, 2013. The customers’ accounts receivable balances totaled approximately 10.1% and 17.0%, respectively, of net accounts receivable as of December 31, 2013. |
Note_4_Loss_Per_Share
Note 4 - Loss Per Share | 6 Months Ended | ||||||||||||||||
Dec. 31, 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 | Six Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
In thousands (except per share amounts): | |||||||||||||||||
Net loss (a) | $ | (245 | ) | $ | (251 | ) | $ | (567 | ) | $ | (2,778 | ) | |||||
Weighted average outstanding shares of common stock (b) | 12,253 | 12,253 | 12,253 | 12,253 | |||||||||||||
Dilutive potential common shares from employee stock options | — | — | — | — | |||||||||||||
Common stock and common stock equivalents (c) | 12,253 | 12,253 | 12,253 | 12,253 | |||||||||||||
Loss per share: | |||||||||||||||||
Basic net loss per share (a)/(b) | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.05 | ) | $ | (0.23 | ) | |||||
Diluted net loss per share (a)/(c) | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.05 | ) | $ | (0.23 | ) | |||||
Note_5_Fair_Value_Measurements
Note 5 - Fair Value Measurements | 6 Months Ended |
Dec. 31, 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 | 6 Months Ended | ||||||||||||||||||||||||
Dec. 31, 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 six months ended December 31, 2014 was $8,000 and for the six months ended December 31, 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 December 31, 2014 and June 30, 2014 (in thousands): | |||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||
Adjusted | Unrealized | Unrealized | Fair | Cash & | Short-term Marketable Securities | ||||||||||||||||||||
Cost | Gains | Losses | Value | Cash | |||||||||||||||||||||
Equivalents | |||||||||||||||||||||||||
Level 1: | |||||||||||||||||||||||||
Cash | 609 | - | - | 609 | 609 | - | |||||||||||||||||||
Money Market Funds | 4,633 | - | - | 4,633 | 4,633 | - | |||||||||||||||||||
Total | $ | 5,242 | $ | - | $ | - | $ | 5,242 | $ | 5,242 | $ | - | |||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
Adjusted | Unrealized | Unrealized | Fair | Cash & | Short-term Marketable Securities | ||||||||||||||||||||
Cost | Gains | Losses | Value | 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 | 6 Months Ended | ||||||||
Dec. 31, 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): | |||||||||
December 31, | June 30, | ||||||||
2014 | 2014 | ||||||||
Raw materials | $ | 3,129 | $ | 3,116 | |||||
Finished goods | 2,939 | 3,347 | |||||||
Subtotal | 6,068 | 6,463 | |||||||
Less: Inventory reserve | (2,999 | ) | (3,286 | ) | |||||
Net inventory balance | $ | 3,069 | $ | 3,177 | |||||
Other Accrued Liabilities | |||||||||
December 31, | June 30, | ||||||||
2014 | 2014 | ||||||||
Accrued sales and use tax | $ | 12 | $ | 17 | |||||
Accrued commissions | 72 | 48 | |||||||
Accrued audit fees | 71 | 87 | |||||||
Accrued marketing coop expenses | 39 | 28 | |||||||
Accrued legal expense | 48 | 251 | |||||||
Deferred rent | - | 84 | |||||||
Lease abandonment | 48 | 445 | |||||||
Accrued royalty | 49 | 45 | |||||||
Warranty reserve | 168 | 159 | |||||||
Other accruals | 1 | 10 | |||||||
Total other accrued liabilities | $ | 508 | $ | 1,174 | |||||
Note_8_Contingencies
Note 8 - Contingencies | 6 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Loss Contingency [Abstract] | |||||||||
Contingencies Disclosure [Text Block] | NOTE 8 –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): | |||||||||
Six months Ended | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Beginning balance | $ | 159 | $ | 190 | |||||
Cost of warranty claims | (26 | ) | (27 | ) | |||||
Accruals for product warranties | 35 | 10 | |||||||
Ending balance | $ | 168 | $ | 173 | |||||
Note_9_Commitments
Note 9 - Commitments | 6 Months Ended | ||||
Dec. 31, 2014 | |||||
Disclosure Text Block Supplement [Abstract] | |||||
Commitments Disclosure [Text Block] | NOTE 9 –COMMITMENTS | ||||
Lease Termination | |||||
On December 15, 2014, Qualstar signed a lease termination agreement with the landlord of the facility at 3990B Heritage Oak Ct, Simi Valley, California. The lease termination agreement amends the original lease term expiration date from December 31, 2015 to February 28, 2015. In accordance with the termination agreement, the Company was required to pay $184,000 in termination fee. The Company has reduced costs and the total square footage from 56,000 square feet to 20,560 square feet to better align our current needs while still allowing space for growth. The current monthly rent payment for this lease is $44,000 plus additional fees. The combined payments for the new leases beginning February 1, 2015 is $20,000. | |||||
In the three and six months ended December 31, 2014, $70,000 was included in operating expenses attributed to the termination of the lease, with the $184,000 termination fee reduced by prepaid rent of $54,000 and offset by deferred rent of $60,000. The prepaid rent will be expensed February, 2015 as outlined in the agreement. The accrual for lease abandonment taken in prior periods as a restructuring expense was reversed in the amount of $245,000. | |||||
Lease Agreements | |||||
On December 8, 2014, the Company entered into a lease agreement with K-Swiss Inc., to lease approximately 5,400 square feet of office space at 31248 Oak Crest Drive, Westlake Village, California. The five year lease commences February 1, 2015 and ends January 31, 2020. | |||||
On December 15, 2014, the Company entered into a lease agreement with Cypress Pointe Simi Valley, LLC, to lease approximately 15,160 square feet of office/warehouse space at 130 West Cochran Street, Unit C, Simi Valley, California. The thirty-seven month lease commences February 1, 2015 and ends February 28, 2018. | |||||
The future lease payments are as follows: | |||||
Year ended June 30, | Lease commitments | ||||
(in thousands) | |||||
2015 | $ | 79 | |||
2016 | 231 | ||||
2017 | 248 | ||||
2018 | 212 | ||||
2019 | 133 | ||||
Thereafter | 79 | ||||
Total | 982 | ||||
Note_10_Comprehensive_Loss
Note 10 - Comprehensive Loss | 6 Months Ended |
Dec. 31, 2014 | |
Disclosure Text Block [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | NOTE 10 – COMPREHENSIVE LOSS |
For the six months ended December 31, 2014 and 2013, comprehensive loss amounted to approximately $568,000 and $2,772,000, respectively. The difference in net loss and comprehensive loss for the six months ended December 31, 2014 was $1,000, which relates to the realized loss from the sale of marketable securities. For the six months ended December 31, 2013 net loss and comprehensive loss differed by $6,000, which relates to the changes in the unrealized gains that the Company recorded for its available-for-sale marketable securities. |
Note_11_Stock_Based_Compensati
Note 11 - Stock Based Compensation | 6 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 11 – STOCK BASED COMPENSATION | ||||||||
The Company recorded share-based compensation associated with outstanding stock options and restricted stock grants during the three and six months ended December 31, 2014 of approximately $38,000 and $56,000, respectively, and for the three and six months ended December 31, 2013 of ($10,000) and ($6,000), 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 the 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 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 six months ended December 31, 2014. | |||||||||
On October 8, 2014, the board of directors approved the issuance of stock options 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 unless exercised sooner. As a result of the stock options issued to Mr. Bronson, the Company recognized $9,000 noncash stock compensation expense in the six months ended December 31, 2014. | |||||||||
The Company did not grant any stock options during the six months ended December 31, 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 December 31, 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 December 31, 2014, the unrecognized compensation cost related to the non-vested share based compensation for restricted stock is $130,000. |
Note_12_Legal_Proceedings
Note 12 - Legal Proceedings | 6 Months Ended |
Dec. 31, 2014 | |
Disclosure Text Block Supplement [Abstract] | |
Legal Matters and Contingencies [Text Block] | NOTE 12 – 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 Qualstar’s automated tape libraries infringe claims of U.S. Patent No. 6,328,766 (the “’766 Patent”). 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 (the “Patent Litigation”). Overland is seeking injunctive relief as well as the recovery of unspecified monetary damages. Qualstar denies that it infringed the Overland patent and filed a counterclaim against Overland. The litigation was stayed pending Inter Partes Review (“IPR”) before the Patent Trial and Appeals Board (“PTAB”) (Case IPR 2013-00357). On November 7, 2014, the PTAB issued its final written decision finding that all eleven claims by Overland related to the ‘766 Patent were “unpatentable.” The PTAB denied Overland’s request for leave to amend its claims. Overland moved for reconsideration of the PTAB’s decision, but the request was denied by the PTAB on January 8, 2015. Overland has until March 12, 2015 to file an appeal of the PTAB’s decision with the Court of Appeals for the Federal Circuit. 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 in the Superior Court of the State of California, County of Los Angeles 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, Case No.: BC 514889. On April 17, 2014, Defendant Firestone filed a cross-complaint against Qualstar. The matter has been resolved by the parties, and the claims subject to the Qualstar’s complaint and Lawrence D. Firestone’s cross-complaint have been withdrawn. | |
Needham & Company, LLC | |
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 moved to dismiss the complaint, and on January 5, 2015, the court granted Needham’s motion, thereby dismissing the entirety of the complaint. Qualstar has filed an appeal of the court’s ruling dismissing the complaint. | |
Other legal matters | |
Qualstar is also 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 December 31, 2014, we had accrued aggregate current liabilities of $48,000 in probable fees and costs related to these legal matters. |
Note_13_Income_Taxes
Note 13 - Income Taxes | 6 Months Ended |
Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 13 – INCOME TAXES |
We did not record a provision or benefit for income taxes for the three and six months ended December 31, 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_14_Segment_Information
Note 14 - Segment Information | 6 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Segment Reporting Disclosure [Text Block] | NOTE 14 – 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 Data Storage. The two segments discussed in this analysis are presented in the way we internally manage and monitor performance for the three and six months ended December 31, 2014 and 2013. Allocations for internal resources were made for the three and six months ended December 31, 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 | Six Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenue | |||||||||||||||||
Power Supplies | $ | 1,553 | $ | 1,843 | $ | 2,952 | $ | 2 ,796 | |||||||||
Data Storage: | |||||||||||||||||
Product | 1,457 | 1,020 | 2,824 | 1,844 | |||||||||||||
Service | 518 | 577 | 1,072 | 991 | |||||||||||||
Total data storage | $ | 1,975 | $ | 1,597 | $ | 3,896 | $ | 2,835 | |||||||||
Total revenue | $ | 3,528 | $ | 3,440 | $ | 6,848 | $ | 5,631 | |||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Loss before Taxes | |||||||||||||||||
Power Supplies | $ | (164 | ) | $ | (69 | ) | $ | (406 | ) | $ | (387 | ) | |||||
Data Storage | (81 | ) | (182 | ) | (161 | ) | (2,391 | ) | |||||||||
Total loss before taxes | $ | (245 | ) | $ | (251 | ) | $ | (567 | ) | $ | (2,778 | ) | |||||
December 31, | June 30, | ||||||||||||||||
2014 | 2014 | ||||||||||||||||
Total Assets | |||||||||||||||||
Cash and marketable securities: | |||||||||||||||||
Cash and cash equivalents | $ | 5,242 | $ | 5,462 | |||||||||||||
Marketable securities | - | 1,763 | |||||||||||||||
Total cash and marketable securities | $ | 5,242 | $ | 7,225 | |||||||||||||
Other assets: | |||||||||||||||||
Power Supplies | 2,386 | 2,329 | |||||||||||||||
Data Storage | 4,330 | 3,231 | |||||||||||||||
Total other assets | $ | 6,716 | $ | 5,560 | |||||||||||||
Total assets | $ | 11,958 | $ | 12,785 | |||||||||||||
Note_15_Related_Party_Transact
Note 15 - Related Party Transactions | 6 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 15 – 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 and six months ended December 31, 2014, BFK paid $3,600 and $7,200 to Qualstar as license fees, respectively. 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 or to be reimbursed by Interlink Electronics, Inc. (“Interlink”), for IT, sales and marketing support and other expenses paid on behalf of the Company or Interlink. For the three months ended December 31, 2014 the Company reimbursed Interlink $16,000, net, and for the three months ended December 31, 2013 the Company reimbursed Interlink $63,000. For the six months ended December 31, 2014 the Company reimbursed Interlink $30,000, net, and for the six months ended December 31, 2013 the Company reimbursed Interlink $63,000. Steven N. Bronson is also the Chairman and CEO and a majority shareholder of Interlink. |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Dec. 31, 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. | |
The consolidated financial statements include our accounts and the accounts of our wholly-owned subisidiary in Singapore. All significant intercompany accounts and transactions have been eliminated in consolidation. | |
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 December 31, 2014, we had deferred revenue of approximately $1,211,000, and no deferred profit. 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, then 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 $48,000 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, 2017, and the Company is in the process of determining the potential impact and to 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, 2016, and is not expected to impact our consolidated financial statements. | |
In August 2014, the FASB issued ASU 2014-15, This standard sets forth management’s responsibility to evaluate, each reporting period, whether there is substantial doubt about our ability to continue as a going concern, and if so, to provide related footnote disclosures. The standard is effective for annual reporting periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016. We are currently evaluating this new standard and after adoption, we will incorporate this guidance in our assessment of going concern. |
Note_4_Loss_Per_Share_Tables
Note 4 - Loss Per Share (Tables) | 6 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended | Six Months Ended | |||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
In thousands (except per share amounts): | |||||||||||||||||
Net loss (a) | $ | (245 | ) | $ | (251 | ) | $ | (567 | ) | $ | (2,778 | ) | |||||
Weighted average outstanding shares of common stock (b) | 12,253 | 12,253 | 12,253 | 12,253 | |||||||||||||
Dilutive potential common shares from employee stock options | — | — | — | — | |||||||||||||
Common stock and common stock equivalents (c) | 12,253 | 12,253 | 12,253 | 12,253 | |||||||||||||
Loss per share: | |||||||||||||||||
Basic net loss per share (a)/(b) | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.05 | ) | $ | (0.23 | ) | |||||
Diluted net loss per share (a)/(c) | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.05 | ) | $ | (0.23 | ) |
Note_6_Cash_Cash_Equivalents_a1
Note 6 - Cash, Cash Equivalents and Marketable Securities Recorded at Fair Value (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||
Available-for-sale Securities [Table Text Block] | 31-Dec-14 | ||||||||||||||||||||||||
Adjusted | Unrealized | Unrealized | Fair | Cash & | Short-term Marketable Securities | ||||||||||||||||||||
Cost | Gains | Losses | Value | Cash | |||||||||||||||||||||
Equivalents | |||||||||||||||||||||||||
Level 1: | |||||||||||||||||||||||||
Cash | 609 | - | - | 609 | 609 | - | |||||||||||||||||||
Money Market Funds | 4,633 | - | - | 4,633 | 4,633 | - | |||||||||||||||||||
Total | $ | 5,242 | $ | - | $ | - | $ | 5,242 | $ | 5,242 | $ | - | |||||||||||||
30-Jun-14 | |||||||||||||||||||||||||
Adjusted | Unrealized | Unrealized | Fair | Cash & | Short-term Marketable Securities | ||||||||||||||||||||
Cost | Gains | Losses | Value | 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) | 6 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure Text Block Supplement [Abstract] | |||||||||
Schedule of Inventory, Current [Table Text Block] | December 31, | June 30, | |||||||
2014 | 2014 | ||||||||
Raw materials | $ | 3,129 | $ | 3,116 | |||||
Finished goods | 2,939 | 3,347 | |||||||
Subtotal | 6,068 | 6,463 | |||||||
Less: Inventory reserve | (2,999 | ) | (3,286 | ) | |||||
Net inventory balance | $ | 3,069 | $ | 3,177 | |||||
Schedule of Other Accrued Liabilities [Table Text Block] | December 31, | June 30, | |||||||
2014 | 2014 | ||||||||
Accrued sales and use tax | $ | 12 | $ | 17 | |||||
Accrued commissions | 72 | 48 | |||||||
Accrued audit fees | 71 | 87 | |||||||
Accrued marketing coop expenses | 39 | 28 | |||||||
Accrued legal expense | 48 | 251 | |||||||
Deferred rent | - | 84 | |||||||
Lease abandonment | 48 | 445 | |||||||
Accrued royalty | 49 | 45 | |||||||
Warranty reserve | 168 | 159 | |||||||
Other accruals | 1 | 10 | |||||||
Total other accrued liabilities | $ | 508 | $ | 1,174 |
Note_8_Contingencies_Tables
Note 8 - Contingencies (Tables) | 6 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Loss Contingency [Abstract] | |||||||||
Schedule of Product Warranty Liability [Table Text Block] | Six months Ended | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Beginning balance | $ | 159 | $ | 190 | |||||
Cost of warranty claims | (26 | ) | (27 | ) | |||||
Accruals for product warranties | 35 | 10 | |||||||
Ending balance | $ | 168 | $ | 173 |
Note_9_Commitments_Tables
Note 9 - Commitments (Tables) | 6 Months Ended | ||||
Dec. 31, 2014 | |||||
Disclosure Text Block Supplement [Abstract] | |||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Year ended June 30, | Lease commitments | |||
(in thousands) | |||||
2015 | $ | 79 | |||
2016 | 231 | ||||
2017 | 248 | ||||
2018 | 212 | ||||
2019 | 133 | ||||
Thereafter | 79 | ||||
Total | 982 |
Note_11_Stock_Based_Compensati1
Note 11 - Stock Based Compensation (Tables) | 6 Months Ended | ||||||||
Dec. 31, 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 December 31, 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. |
Note_14_Segment_Information_Ta
Note 14 - Segment Information (Tables) | 6 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Note 14 - Segment Information (Tables) [Line Items] | |||||||||||||||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Three Months Ended | Six Months Ended | |||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenue | |||||||||||||||||
Power Supplies | $ | 1,553 | $ | 1,843 | $ | 2,952 | $ | 2 ,796 | |||||||||
Data Storage: | |||||||||||||||||
Product | 1,457 | 1,020 | 2,824 | 1,844 | |||||||||||||
Service | 518 | 577 | 1,072 | 991 | |||||||||||||
Total data storage | $ | 1,975 | $ | 1,597 | $ | 3,896 | $ | 2,835 | |||||||||
Total revenue | $ | 3,528 | $ | 3,440 | $ | 6,848 | $ | 5,631 | |||||||||
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | December 31, | June 30, | |||||||||||||||
2014 | 2014 | ||||||||||||||||
Total Assets | |||||||||||||||||
Cash and marketable securities: | |||||||||||||||||
Cash and cash equivalents | $ | 5,242 | $ | 5,462 | |||||||||||||
Marketable securities | - | 1,763 | |||||||||||||||
Total cash and marketable securities | $ | 5,242 | $ | 7,225 | |||||||||||||
Other assets: | |||||||||||||||||
Power Supplies | 2,386 | 2,329 | |||||||||||||||
Data Storage | 4,330 | 3,231 | |||||||||||||||
Total other assets | $ | 6,716 | $ | 5,560 | |||||||||||||
Total assets | $ | 11,958 | $ | 12,785 | |||||||||||||
(Loss) Income Before Taxes By Segment [Member] | |||||||||||||||||
Note 14 - Segment Information (Tables) [Line Items] | |||||||||||||||||
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated [Table Text Block] | Three Months Ended | Six Months Ended | |||||||||||||||
December 31, | December 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Loss before Taxes | |||||||||||||||||
Power Supplies | $ | (164 | ) | $ | (69 | ) | $ | (406 | ) | $ | (387 | ) | |||||
Data Storage | (81 | ) | (182 | ) | (161 | ) | (2,391 | ) | |||||||||
Total loss before taxes | $ | (245 | ) | $ | (251 | ) | $ | (567 | ) | $ | (2,778 | ) |
Note_1_Summary_of_Significant_1
Note 1 - Summary of Significant Accounting Policies (Details) (USD $) | Dec. 31, 2014 | Jun. 30, 2014 |
Accounting Policies [Abstract] | ||
Deferred Profit | $0 | $8,000 |
Deferred Revenue | 1,211,000 | 1,197,000 |
Loss Contingency, Estimate of Possible Loss | $48,000 |
Note_3_Significant_Customers_C1
Note 3 - Significant Customers, Concentration of Credit Risk, and Geographic Information (Details) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Customer 1 [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||||
Note 3 - Significant Customers, Concentration of Credit Risk, and Geographic Information (Details) [Line Items] | ||||
Concentration Risk, Percentage | 14.40% | 15.10% | 11.90% | 15.00% |
Customer 1 [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Note 3 - Significant Customers, Concentration of Credit Risk, and Geographic Information (Details) [Line Items] | ||||
Concentration Risk, Percentage | 31.10% | 10.10% | 31.10% | 10.10% |
Customer 2 [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||||
Note 3 - Significant Customers, Concentration of Credit Risk, and Geographic Information (Details) [Line Items] | ||||
Concentration Risk, Percentage | 10.40% | 10.50% | 10.60% | 9.50% |
Customer 2 [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Note 3 - Significant Customers, Concentration of Credit Risk, and Geographic Information (Details) [Line Items] | ||||
Concentration Risk, Percentage | 7.90% | 17.00% | 7.90% | 17.00% |
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 | 54.90% | 41.20% | 51.30% | 40.30% |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | ||||
Note 3 - Significant Customers, Concentration of Credit Risk, and Geographic Information (Details) [Line Items] | ||||
Number Of Major Customers, Concentration Risk | 2 | 2 | 2 | 2 |
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 | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Computation of Basic and Diluted Net Loss Per Share [Abstract] | ||||
Net loss (a) (in Dollars) | ($245) | ($251) | ($567) | ($2,778) |
Weighted average outstanding shares of common stock (b) | 12,253 | 12,253 | 12,253 | 12,253 |
Dilutive potential common shares from employee stock options | 0 | 0 | 0 | 0 |
Common stock and common stock equivalents (c) | 12,253 | 12,253 | 12,253 | 12,253 |
Loss per share: | ||||
Basic net loss per share (a)/(b) (in Dollars per share) | ($0.02) | ($0.02) | ($0.05) | ($0.23) |
Diluted net loss per share (a)/(c) (in Dollars per share) | ($0.02) | ($0.02) | ($0.05) | ($0.23) |
Note_6_Cash_Cash_Equivalents_a2
Note 6 - Cash, Cash Equivalents and Marketable Securities Recorded at Fair Value (Details) (USD $) | 6 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Cash and Cash Equivalents [Abstract] | ||
Marketable Securities, Realized Gain (Loss) | ($8,000) | $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 $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Dec. 31, 2014 |
Level 1: | ||
Adjusted Cost | $7,224 | $5,242 |
Unrealized Gains | 1 | |
Fair Value | 7,225 | 5,242 |
Cash & Cash Equivalents | 5,462 | 5,242 |
Short-term Marketable Securities | 1,763 | |
Fair Value, Inputs, Level 1 [Member] | Cash [Member] | ||
Level 1: | ||
Adjusted Cost | 617 | 609 |
Fair Value | 617 | 609 |
Cash & Cash Equivalents | 617 | 609 |
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | ||
Level 1: | ||
Adjusted Cost | 4,845 | 4,633 |
Fair Value | 4,845 | 4,633 |
Cash & Cash Equivalents | 4,845 | 4,633 |
Fair Value, Inputs, Level 1 [Member] | ||
Level 1: | ||
Adjusted Cost | 5,462 | |
Fair Value | 5,462 | |
Cash & Cash Equivalents | 5,462 | |
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] | Corporate Debt Securities [Member] | ||
Level 1: | ||
Adjusted Cost | 1,354 | |
Unrealized Gains | 1 | |
Fair Value | 1,355 | |
Short-term Marketable Securities | 1,355 | |
Fair Value, Inputs, Level 2 [Member] | US States and Political Subdivisions Debt Securities [Member] | ||
Level 1: | ||
Adjusted Cost | 76 | |
Fair Value | 76 | |
Short-term Marketable Securities | 76 | |
Fair Value, Inputs, Level 2 [Member] | ||
Level 1: | ||
Adjusted Cost | 1,762 | |
Unrealized Gains | 1 | |
Fair Value | 1,763 | |
Short-term Marketable Securities | $1,763 |
Note_7_Balance_Sheet_Details_D
Note 7 - Balance Sheet Details (Details) - Inventories at Lower of FIFO Cost or Market (USD $) | Dec. 31, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Inventories at Lower of FIFO Cost or Market [Abstract] | ||
Raw materials | $3,129 | $3,116 |
Finished goods | 2,939 | 3,347 |
Subtotal | 6,068 | 6,463 |
Less: Inventory reserve | -2,999 | -3,286 |
Net inventory balance | $3,069 | $3,177 |
Note_7_Balance_Sheet_Details_D1
Note 7 - Balance Sheet Details (Details) - Other Accrued Liabilities (USD $) | Dec. 31, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | ||
Note 7 - Balance Sheet Details (Details) - Other Accrued Liabilities [Line Items] | ||
Accrued sales and use tax | $12 | $17 |
Accrued commissions | 72 | 48 |
Deferred rent | 84 | |
Lease abandonment | 48 | 445 |
Accrued royalty | 49 | 45 |
Warranty reserve | 168 | 159 |
Other accruals | 1 | 10 |
Total other accrued liabilities | 508 | 1,174 |
Accrued marketing coop expenses | 39 | 28 |
Accrued Audit [Member] | ||
Note 7 - Balance Sheet Details (Details) - Other Accrued Liabilities [Line Items] | ||
Accrued professional fees | 71 | 87 |
Accrued Contingent Legal Fees [Member] | ||
Note 7 - Balance Sheet Details (Details) - Other Accrued Liabilities [Line Items] | ||
Accrued professional fees | $48 | $251 |
Note_8_Contingencies_Details_P
Note 8 - Contingencies (Details) - Product Warranty Liability (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Product Warranty Liability [Abstract] | ||
Beginning balance | $159 | $190 |
Cost of warranty claims | -26 | -27 |
Accruals for product warranties | 35 | 10 |
Ending balance | $168 | $173 |
Note_9_Commitments_Details
Note 9 - Commitments (Details) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2014 | Feb. 01, 2015 | Feb. 28, 2015 | Dec. 15, 2014 | Dec. 08, 2014 | |
sqft | ||||||
Note 9 - Commitments (Details) [Line Items] | ||||||
Gain (Loss) on Contract Termination | ($70,000) | ($70,000) | ||||
Increase (Decrease) in Prepaid Rent | -54,000 | -54,000 | ||||
Deferred Rent Credit | 60,000 | 60,000 | ||||
Restructuring Reserve, Accrual Adjustment | 245,000 | |||||
Subsequent Event [Member] | Simi Valley, California [Member] | ||||||
Note 9 - Commitments (Details) [Line Items] | ||||||
Area of Real Estate Property (in Square Feet) | 20,560 | |||||
Operating Lease Monthly Rent | 20,000 | |||||
Simi Valley, California [Member] | Cypress Pointe Simi Valley, LLC [Member] | ||||||
Note 9 - Commitments (Details) [Line Items] | ||||||
Area of Real Estate Property (in Square Feet) | 15,160 | |||||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 37 months | |||||
Simi Valley, California [Member] | ||||||
Note 9 - Commitments (Details) [Line Items] | ||||||
Payment for Early Termination Fee, Operating Leases | 184,000 | |||||
Area of Real Estate Property (in Square Feet) | 56,000 | |||||
Operating Lease Monthly Rent | $44,000 | |||||
Westlake Village, California [Member] | K-Swiss, Inc. [Member] | ||||||
Note 9 - Commitments (Details) [Line Items] | ||||||
Area of Real Estate Property (in Square Feet) | 5,400 | |||||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 5 years |
Note_9_Commitments_Details_Fut
Note 9 - Commitments (Details) - Future Lease Payments (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Future Lease Payments [Abstract] | |
2015 | $79 |
2016 | 231 |
2017 | 248 |
2018 | 212 |
2019 | 133 |
Thereafter | 79 |
Total | $982 |
Note_10_Comprehensive_Loss_Det
Note 10 - Comprehensive Loss (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure Text Block [Abstract] | ||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | ($245,000) | ($255,000) | ($568,000) | ($2,772,000) |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | ($4,000) | ($1,000) | $6,000 |
Note_11_Stock_Based_Compensati2
Note 11 - Stock Based Compensation (Details) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | ||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 08, 2014 | Apr. 01, 2017 | Apr. 01, 2018 | Apr. 01, 2019 | Apr. 01, 2014 | Oct. 08, 2014 | ||
Note 11 - Stock Based Compensation (Details) [Line Items] | |||||||||||
Allocated Share-based Compensation Expense | $38,000 | ($10,000) | $56,000 | ($6,000) | |||||||
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 (in Shares) | 0 | ||||||||||
Share Price (in Dollars per share) | 1.61 | ||||||||||
Employee Stock Option [Member] | Chief Executive Officer [Member] | |||||||||||
Note 11 - Stock Based Compensation (Details) [Line Items] | |||||||||||
Allocated Share-based Compensation Expense | 27,000 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | ||||||||||
Restricted Stock [Member] | Share-based Compensation Award, Tranche One [Member] | Executive Vice President [Member] | |||||||||||
Note 11 - Stock Based Compensation (Details) [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in Shares) | 33,333 | ||||||||||
Restricted Stock [Member] | Share-based Compensation Award, Tranche Two [Member] | Executive Vice President [Member] | |||||||||||
Note 11 - Stock Based Compensation (Details) [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in Shares) | 33,333 | ||||||||||
Restricted Stock [Member] | Share-based Compensation Award, Tranche Three [Member] | Executive Vice President [Member] | |||||||||||
Note 11 - Stock Based Compensation (Details) [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in Shares) | 33,334 | ||||||||||
Restricted Stock [Member] | Executive Vice President [Member] | |||||||||||
Note 11 - Stock Based Compensation (Details) [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in Shares) | 100,000 | ||||||||||
Restricted Stock [Member] | |||||||||||
Note 11 - Stock Based Compensation (Details) [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in Shares) | 0 | [1] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in Shares) | 0 | ||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 130,000 | 130,000 | |||||||||
Chief Executive Officer [Member] | |||||||||||
Note 11 - Stock Based Compensation (Details) [Line Items] | |||||||||||
Allocated Share-based Compensation Expense | $9,000 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares) | 100,000 | 100,000 | |||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) | 1.23 | $1.27 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | ||||||||||
[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_Stock_Based_Compensati3
Note 11 - Stock Based Compensation (Details) - Restricted Stock Awards Activity (Restricted Stock [Member], USD $) | 6 Months Ended | |
Dec. 31, 2014 | ||
Restricted Stock [Member] | ||
Note 11 - Stock Based Compensation (Details) - Restricted Stock Awards Activity [Line Items] | ||
Nonvested at June 30, 2014 | 100,000,000 | |
Nonvested at June 30, 2014 | $1.61 | |
Granted (1) | 0 | [1] |
Granted (1) | $0 | [1] |
Vested | 0 | |
Vested | $0 | |
Nonvested at December 31, 2014 | 100,000,000 | |
Nonvested at December 31, 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_12_Legal_Proceedings_Deta
Note 12 - Legal Proceedings (Details) (USD $) | Dec. 31, 2014 |
Disclosure Text Block Supplement [Abstract] | |
Loss Contingency, Accrual, Current | $48,000 |
Note_13_Income_Taxes_Details
Note 13 - Income Taxes (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ||||
Income Tax Expense (Benefit) | $0 | $0 | $0 | $0 |
Note_14_Segment_Information_De
Note 14 - Segment Information (Details) | 6 Months Ended |
Dec. 31, 2014 | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Note_14_Segment_Information_De1
Note 14 - Segment Information (Details) - Segment Revenue (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue | $3,528 | $3,440 | $6,848 | $5,631 |
Power Supplies [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue | 1,553 | 1,843 | 2,952 | 2,796 |
Tape Libraries [Member] | Product [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue | 1,457 | 1,020 | 2,824 | 1,844 |
Tape Libraries [Member] | Service [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue | 518 | 577 | 1,072 | 991 |
Tape Libraries [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue | $1,975 | $1,597 | $3,896 | $2,835 |
Note_14_Segment_Information_De2
Note 14 - Segment Information (Details) - (Loss) Income Before Taxes by Segment (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Loss before Taxes | ||||
(Loss) Income Before Taxes | ($245) | ($251) | ($567) | ($2,778) |
Power Supplies [Member] | ||||
Loss before Taxes | ||||
(Loss) Income Before Taxes | -164 | -69 | -406 | -387 |
Tape Libraries [Member] | ||||
Loss before Taxes | ||||
(Loss) Income Before Taxes | ($81) | ($182) | ($161) | ($2,391) |
Note_14_Segment_Information_De3
Note 14 - Segment Information (Details) - Total Assets by Segment (USD $) | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||||
Cash and marketable securities: | ||||
Cash and cash equivalents | $5,242 | $5,462 | $1,922 | $1,966 |
Marketable securities | 1,763 | |||
Total cash and marketable securities | 5,242 | 7,225 | ||
Other assets: | ||||
Total other assets | 6,716 | 5,560 | ||
Total assets | 11,958 | 12,785 | ||
Power Supplies [Member] | ||||
Other assets: | ||||
Power Supplies and Tape Libraries | 2,386 | 2,329 | ||
Tape Libraries [Member] | ||||
Other assets: | ||||
Power Supplies and Tape Libraries | $4,330 | $3,231 |
Note_15_Related_Party_Transact1
Note 15 - Related Party Transactions (Details) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | 1-May-14 | |
Interlink Electronics, Inc. [Member] | Reimbursement of Expenses Paid by Company[Member] | |||||
Note 15 - Related Party Transactions (Details) [Line Items] | |||||
Related Party Transaction, Amounts of Transaction | $16,000 | $63,000 | $30,000 | $63,000 | |
Per Month [Member] | License Agreement [Member] | |||||
Note 15 - Related Party Transactions (Details) [Line Items] | |||||
Operating Leases, Income Statement, Sublease Revenue | 1,200 | ||||
License Agreement [Member] | |||||
Note 15 - Related Party Transactions (Details) [Line Items] | |||||
Related Party Transaction, Expenses from Transactions with Related Party | $3,600 | $7,200 |