Cover
Cover - shares | 9 Months Ended | |
Mar. 31, 2024 | Apr. 30, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2024 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --06-30 | |
Entity File Number | 0-14942 | |
Entity Registrant Name | PRO-DEX, INC. | |
Entity Central Index Key | 0000788920 | |
Entity Tax Identification Number | 84-1261240 | |
Entity Incorporation, State or Country Code | CO | |
Entity Address, Address Line One | 2361 McGaw Avenue | |
Entity Address, City or Town | Irvine | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92614 | |
City Area Code | 949 | |
Local Phone Number | 769-3200 | |
Title of 12(b) Security | Common Stock, no par value | |
Trading Symbol | PDEX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 3,419,089 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
Current Assets: | ||
Cash and cash equivalents | $ 3,219 | $ 2,936 |
Investments | 4,577 | 1,134 |
Accounts receivable, net of allowance for expected credit losses of $1 and $0 at March 31, 2024 and at June 30, 2023, respectively | 12,516 | 9,952 |
Deferred costs | 331 | 494 |
Inventory | 14,242 | 16,167 |
Prepaid expenses and other current assets | 1,072 | 296 |
Total current assets | 35,957 | 30,979 |
Land and building, net | 6,179 | 6,249 |
Equipment and leasehold improvements, net | 5,191 | 5,079 |
Right of use asset, net | 1,575 | 1,872 |
Intangibles, net | 61 | 81 |
Investments | 1,543 | 7,521 |
Other assets | 42 | 42 |
Total assets | 50,548 | 51,823 |
Current Liabilities: | ||
Accounts payable | 3,435 | 2,261 |
Accrued expenses | 2,701 | 3,135 |
Deferred revenue | 35 | 0 |
Income taxes payable | 390 | 453 |
Note payable | 3,858 | 3,827 |
Total current liabilities | 10,419 | 9,676 |
Lease liability, net of current portion | 1,299 | 1,638 |
Deferred income taxes, net | 8 | 8 |
Notes payable, net of current portion | 7,884 | 8,911 |
Total non-current liabilities | 9,191 | 10,557 |
Total liabilities | 19,610 | 20,233 |
Shareholders’ equity: | ||
Common shares; no par value; 50,000,000 shares authorized; 3,451,423 and 3,545,309 shares issued and outstanding at March 31, 2024 and June 30, 2023, respectively | 5,575 | 6,767 |
Retained earnings | 25,363 | 24,823 |
Total shareholders’ equity | 30,938 | 31,590 |
Total liabilities and shareholders’ equity | $ 50,548 | $ 51,823 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Net of allowance for expected credit losses | $ 1 | $ 0 |
Common stock, no par value | $ 0 | $ 0 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 3,451,423 | 3,545,309 |
Common stock, shares outstanding | 3,451,423 | 3,545,309 |
CONDENSED CONSOLIDATED INCOME S
CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||||
Net sales | $ 14,293 | $ 13,079 | $ 38,819 | $ 35,448 |
Cost of sales | 10,291 | 9,268 | 28,357 | 26,058 |
Gross profit | 4,002 | 3,811 | 10,462 | 9,390 |
Operating expenses: | ||||
Selling expenses | 17 | 24 | 79 | 146 |
General and administrative expenses | 1,012 | 1,009 | 3,208 | 2,983 |
Research and development costs | 760 | 713 | 2,353 | 2,109 |
Total operating expenses | 1,789 | 1,746 | 5,640 | 5,238 |
Operating income | 2,213 | 2,065 | 4,822 | 4,152 |
Interest expense | 138 | 131 | 409 | 389 |
Unrealized gain (loss) on marketable equity investments | (1,192) | 242 | (3,785) | 3,407 |
Interest and other income | 30 | 11 | 76 | 235 |
Gain on sale of investments | 0 | 0 | 0 | 7 |
Income before income taxes | 913 | 2,187 | 704 | 7,412 |
Income tax expense | 258 | 570 | 164 | 1,840 |
Net income | $ 655 | $ 1,617 | $ 540 | $ 5,572 |
Basic net income per share: | ||||
Net income | $ 0.19 | $ 0.46 | $ 0.15 | $ 1.56 |
Diluted net income per share: | ||||
Net income | $ 0.19 | $ 0.45 | $ 0.15 | $ 1.52 |
Weighted average common shares outstanding: | ||||
Basic | 3,451 | 3,548 | 3,531 | 3,580 |
Diluted | 3,524 | 3,623 | 3,604 | 3,656 |
Common shares outstanding | 3,451 | 3,545 | 3,451 | 3,545 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Retained Earnings [Member] | Total |
Balance, beginning of period at Jun. 30, 2022 | $ 7,682 | $ 17,749 | $ 0 |
Net income (loss) | 5,572 | 5,572 | |
Share-based compensation expense | 584 | ||
Share repurchases | (1,547) | ||
Shares withheld from common stock issued to pay employee payroll taxes | (223) | ||
Exercise of stock options | 11 | ||
ESPP shares issued | 78 | ||
Balance, end of period at Mar. 31, 2023 | 6,585 | 23,321 | 29,906 |
Balance, beginning of period at Dec. 31, 2022 | 6,533 | 21,704 | 0 |
Net income (loss) | 1,617 | 1,617 | |
Share-based compensation expense | 206 | ||
Share repurchases | (198) | ||
ESPP shares issued | 44 | ||
Balance, end of period at Mar. 31, 2023 | 6,585 | 23,321 | 29,906 |
Balance, beginning of period at Jun. 30, 2023 | 6,767 | 24,823 | 31,590 |
Net income (loss) | 540 | 540 | |
Share-based compensation expense | 588 | ||
Share repurchases | (1,830) | ||
ESPP shares issued | 50 | ||
Balance, end of period at Mar. 31, 2024 | 5,575 | 25,363 | 30,938 |
Balance, beginning of period at Dec. 31, 2023 | 7,078 | 24,708 | 0 |
Net income (loss) | 655 | 655 | |
Share-based compensation expense | 201 | ||
Share repurchases | (1,722) | ||
ESPP shares issued | 18 | ||
Balance, end of period at Mar. 31, 2024 | $ 5,575 | $ 25,363 | $ 30,938 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 540 | $ 5,572 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 854 | 594 |
Amortization of loan fees, net | (6) | 8 |
Share-based compensation | 588 | 584 |
Unrealized (gain) loss on marketable equity investments | 3,785 | (3,407) |
Non-cash straight-line lease amortization | (12) | (1) |
Gain on sale of investments | 0 | (7) |
Deferred income taxes | 0 | 905 |
Bad debt expense | 1 | 2 |
Changes in operating assets and liabilities: | ||
Accounts receivable and other current receivables | (2,565) | 4,817 |
Deferred costs | 163 | 431 |
Inventory | 1,925 | (2,467) |
Prepaid expenses and other assets | (776) | (1,129) |
Accounts payable and accrued expenses | 710 | (1,047) |
Deferred revenue | 35 | (956) |
Income taxes payable | (63) | 936 |
Net cash provided by operating activities | 5,179 | 4,835 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of investments | (1,250) | 0 |
Purchases of equipment and improvements | (876) | (822) |
Proceeds from sale of investments | 0 | 89 |
Net cash used in investing activities | (2,126) | (733) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repurchases of common stock | (1,830) | (1,547) |
Proceeds from exercise of options and ESPP contributions | 50 | 89 |
Payment of employee payroll taxes on net issuance of common stock | 0 | (223) |
Proceeds from Minnesota Bank & Trust revolving loan, net of fees | 2,000 | 3,584 |
Principal payments on notes payable and revolving loan | (2,990) | (4,766) |
Net cash used in financing activities | (2,770) | (2,863) |
Net increase in cash and cash equivalents | 283 | 1,239 |
Cash and cash equivalents, beginning of period | 2,936 | 849 |
Cash and cash equivalents, end of period | 3,219 | 2,088 |
Cash paid during the period for: | ||
Interest | 409 | 384 |
Income taxes | $ 980 | $ 1,107 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure [Table] | ||||
Net Income (Loss) Attributable to Parent | $ 655 | $ 1,617 | $ 540 | $ 5,572 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Insider Trading Arrangements [Line Items] | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | NOTE 1. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of Pro-Dex, Inc. (“we,” “us,” “our,” “Pro-Dex,” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and the instructions to Form 10-Q and Regulation S-K. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These financial statements should be read in conjunction with the financial statements presented in our Annual Report on Form 10-K for the fiscal year ended June 30, 2023. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. The results of operations for such interim periods are not necessarily indicative of the results that may be expected for the full year. For further information, refer to the financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended June 30, 2023. Recently Adopted Accounting Pronouncements In March 2022, the FASB issued Accounting Standards Update (“ASU”) No 2022-02 (Topic 326) Financial Instruments – Credit Losses Recent Accounting Pronouncements Not Yet Adopted In December 2023, the FASB issued ASU No 2023-09 (Topic 740) Income Taxes – Improvements to Income Tax Disclosures Correction of Previously Reported Interim Condensed Consolidated Financial Statements As described in more detail in Note 2 to our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended June 30, 2023, we previously restated certain of our financial statements, including our financial statements for the three and nine months ended March 31, 2023, to correct the estimated fair value of our warrant to purchase up to five percent (5%) of the outstanding capital stock of Monogram Orthopaedics Inc. (NasdaqCM: MGRM), calculated on a fully diluted basis (the “Monogram Warrant”). The restatement recorded, for all restated periods, the Monogram Warrant at its estimated fair value, an unrealized gain on investments, and the deferred income tax expense associated with the corresponding unrealized gain on investments. Presented below are the changes to each financial statement line item for the three and nine months ended March 31, 2023 that were affected by the restatement (in thousands except per share amounts). Three months ended March 31, 2023 Unaudited Income Statement (Third Quarter Fiscal 2023) Schedule of changes in financial statement As Previously Reported Restatement As Restated Unrealized gain(loss) on investments $ (177 ) $ 419 (a) $ 242 Total other income (expense) (297 ) 419 122 Income before income taxes 1,768 419 2,187 Income tax expense 455 115 (b) 570 Net income 1,313 304 1,617 Basic income per share $ 0.37 $ 0.09 $ 0.46 Diluted income per share $ 0.36 $ 0.09 $ 0.45 (a) This amount represents the unrealized gain on the Monogram Warrant for the three months ended March 31, 2023. (b) This amount represents the income tax expense related to the unrealized gain on the Monogram Warrant for the three months ended March 31, 2023. Nine months ended March 31, 2023 Unaudited Income Statement As Previously Reported Restatement As Restated Unrealized gain(loss) on investments $ 231 $ 3,176 (a) $ 3,407 Total other income (expense) 84 3,176 3,260 Income before income taxes 4,236 3,176 7,412 Income tax expense 968 872 (b) 1,840 Net income 3,268 2,304 5,572 Basic income per share $ 0.92 $ 0.64 $ 1.56 Diluted income per share $ 0.89 $ 0.63 $ 1.52 (a) This amount represents the unrealized gain on the Monogram Warrant for the nine months ended March 31, 2023. (b) This amount represents the income tax expense related to the unrealized gain on the Monogram Warrant for the nine months ended March 31, 2023. |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 9 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | NOTE 2. DESCRIPTION OF BUSINESS We specialize in the design, development and manufacture of autoclavable, battery-powered and electric, multi-function surgical drivers and shavers used primarily in the orthopedic, thoracic, and maxocranial facial markets. We have patented adaptive torque-limiting software and proprietary sealing solutions which appeal to our customers, primarily medical device distributors. We also manufacture and sell rotary air motors to a wide range of industries. In August 2020, we formed a wholly owned subsidiary, PDEX Franklin, LLC (“PDEX Franklin”), to hold title for an approximate 25,000 square foot industrial building in Tustin, California (the “Franklin Property”) that we acquired on November 6, 2020, in order to allow for the continued growth of our business. The condensed consolidated financial statements include the accounts of the Company and PDEX Franklin and all significant inter-company accounts and transactions have been eliminated. This subsidiary has no separate operations. |
NET SALES
NET SALES | 9 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
NET SALES | NOTE 3. NET SALES The following table presents the disaggregation of net sales by revenue recognition model (in thousands): Schedule of disaggregation of net sales Three Months Ended Nine Months Ended 2024 2023 2024 2023 Net Sales: Over-time revenue recognition $ 234 $ 970 $ 762 $ 2,361 Point-in-time revenue recognition 14,059 12,109 38,057 33,087 Total net sales $ 14,293 $ 13,079 $ 38,819 $ 35,448 The timing of revenue recognition, billings, and cash collections results in billed accounts receivables, unbilled receivables (presented as deferred costs on our condensed consolidated balance sheets) and customer advances and deposits (presented as deferred revenue on our condensed consolidated balance sheets), where applicable. Amounts are generally billed as work progresses in accordance with agreed upon milestones. The over-time revenue recognition model consists of non-recurring engineering (“NRE”) and prototype services and typically relates to NRE services related to the evaluation, design or customization of a medical device and is typically recognized over time utilizing an input measure of progress based on costs incurred compared to the estimated total costs upon completion. During the three and nine months ended March 31, 2024, we did no 405,000 956,000 35,000 The following tables summarize our contract assets and liability balances (in thousands): Schedule of contract assets and liability As of and for the Three Months Ended As of and for the Nine Months Ended 2024 2023 2024 2023 Contract assets beginning balance $ 412 $ 877 $ 494 $ 710 Expenses incurred during the year 106 362 376 1,108 Amounts reclassified to cost of sales (179 ) (935 ) (505 ) (1,497 ) Amounts allocated to discounts for standalone selling price (8 ) (25 ) (34 ) (42 ) Contract assets ending balance $ 331 $ 279 $ 331 $ 279 As of and for the Three Months Ended As of and for the Nine Months Ended 2024 2023 2024 2023 Contract liabilities beginning balance $ — $ 851 $ — $ 1,013 Payments received from customers 225 41 267 741 Amounts reclassified to revenue (190 ) (835 ) (232 ) (1,697 ) Contract liabilities ending balance $ 35 $ 57 $ 35 $ 57 |
COMPOSITION OF CERTAIN FINANCIA
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS | 9 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS | NOTE 4. COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS Inventory Inventory is stated at the lower of cost (first-in, first-out) or net realizable value and consists of the following (in thousands): Schedule of inventory March 31, June 30, Raw materials /purchased components $ 6,383 $ 8,824 Work in process 3,944 3,686 Sub-assemblies/finished components 2,379 2,387 Finished goods 1,536 1,270 Total inventory $ 14,242 $ 16,167 Investments Investments are stated at market value and consist of the following (in thousands): Schedule of investments March 31, 2024 June 30, 2023 Current: Marketable equity securities – short-term $ 4,577 $ 1,134 Long-term: Warrant — 6,160 Marketable equity securities – long-term 1,543 1,361 Total Investments $ 6,120 $ 8,655 Investments at March 31, 2024 and June 30, 2023 had an aggregate cost basis of $ 3,964,000 2,714,000 2.2 2.4 253,000 219,000 286,000 67,000 Of the total marketable equity securities at March 31, 2024 and June 30, 2023, $ 1 1.1 On October 6, 2023, in conjunction with the execution of a supply agreement with Monogram, we exercised the Monogram Warrant in full in cash totaling $ 1,250,000 1,828,551 38,000 We invest surplus cash from time to time through our Investment Committee, which is comprised of one management director, Rick, and two non-management directors, Raymond Cabillot (“Ray”) and Nicholas Swenson (“Nick”), who chairs the committee. Both Nick and Ray are active investors with extensive portfolio management expertise. We leverage the experience of these committee members to make investment decisions for our surplus operating capital or borrowed funds. Additionally, many of our securities holdings include stocks of public companies that Nick or Ray (or both) may own from time to time either individually or through the investment funds they manage, or other companies whose boards they sit on, such as Air T, Inc. Land and building Land and building consist of the following (in thousands): Schedule of land and building March 31, June 30, Land $ 3,684 $ 3,684 Building 2,815 2,815 Total 6,499 6,499 Less: accumulated depreciation (320 ) (250 ) $ 6,179 $ 6,249 On November 6, 2020, we acquired the Franklin Property for a total purchase price of $ 6.5 1.3 5.2 23,000 70,000 Intangibles Intangibles consist of the following (in thousands): Schedule of intangibles March 31, June 30, Patent-related costs $ 208 $ 208 Less accumulated amortization (147 ) (127 ) $ 61 $ 81 Patent-related costs consist of legal fees incurred in connection with both patent applications and a patent issuance and will be amortized over the estimated life of the product(s) that is or will be utilizing the technology or expensed immediately in the event the patent office denies the issuance of the patent. For the three months ended March 31, 2024, and 2023 we recorded $ 7,000 and $ 10,000 of amortization expense, respectively, and for the nine months ended March 31, 2024 and 2023 we recorded $ 21,000 and $ 31,000 of depreciation expense, respectively. Future amortization expense is expected to be $ 7,000 for the remainder of fiscal 2024 and $ 28,000 per fiscal year through fiscal 2026, at which time we expect these costs to be fully amortized. |
WARRANTY
WARRANTY | 9 Months Ended |
Mar. 31, 2024 | |
Guarantees and Product Warranties [Abstract] | |
WARRANTY | NOTE 5. WARRANTY The warranty accrual is based on historical costs of warranty repairs and expected future identifiable warranty expenses and is included in accrued expenses in the accompanying condensed consolidated balance sheets. As of March 31, 2024 and June 30, 2023, the warranty reserve amounted to $ 273,000 200,000 102,000 (77,000 162,000 46,000 Information regarding the accrual for warranty costs for the three and nine months ended March 31, 2024 and 2023, are as follows (in thousands): Schedule of accrual warranty costs As of and for the 2024 2023 Beginning balance $ 194 $ 344 Accruals during the period 102 26 Changes in estimates of prior period warranty accruals — (103 ) Warranty amortization and utilization (23 ) (15 ) Ending balance $ 273 $ 252 As of and for the 2024 2023 Beginning balance $ 200 $ 340 Accruals during the period 155 135 Changes in estimates of prior period warranty accruals 7 (89 ) Warranty amortization and utilization (89 ) (134 ) Ending balance $ 273 $ 252 |
NET INCOME PER SHARE
NET INCOME PER SHARE | 9 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | NOTE 6. NET INCOME PER SHARE We calculate basic net income per share by dividing net income by the weighted-average number of common shares outstanding during the reporting period. The weighted-average number of common shares outstanding used in the calculation of diluted income per share reflects the effects of potentially dilutive securities, in income generating periods, which consist entirely of outstanding stock options and performance awards. The following table presents reconciliations of the numerators and denominators of the basic and diluted earnings per share computations for net income. In the tables below, income amounts represent the numerator, and share amounts represent the denominator (in thousands, except per share amounts): Schedule of net income per share Three Months Ended Nine Months Ended 2024 2023 2024 2023 Basic: (restated) (restated) Net income $ 655 $ 1,617 $ 540 $ 5,572 Weighted average shares outstanding 3,451 3,548 3,531 3,580 Basic income per share $ 0.19 $ 0.46 $ 0.15 $ 1.56 Three Months Ended Nine Months Ended 2024 2023 2024 2023 Diluted: Net income $ 655 $ 1,617 $ 540 $ 5,572 Weighted average shares outstanding 3,451 3,548 3,531 3,580 Effect of dilutive securities 73 75 73 76 Weighted average shares used in calculation of diluted earnings per share 3,524 3,623 3,604 3,656 Diluted income per share $ 0.19 $ 0.45 $ 0.15 $ 1.52 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 7. INCOME TAXES Deferred income taxes are provided on a liability method whereby deferred tax assets and liabilities are recognized for temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Significant management judgment is required in determining our provision for income taxes and the recoverability of our deferred tax assets. Such determination is based primarily on our historical taxable income, with some consideration given to our estimates of future taxable income by jurisdictions in which we operate and the period over which our deferred tax assets would be recoverable. We recognize accrued interest and penalties related to unrecognized tax benefits when applicable. As of March 31, 2024 and 2023, we recognized accrued interest of $ 69,000 59,000 We are subject to U.S. federal income tax, as well as income tax of multiple state tax jurisdictions. We are currently open to audit under the statute of limitations by the Internal Revenue Service for the years ended June 30, 2020 and later. Our state income tax returns are open to audit under the statute of limitations for the years ended June 30, 2019 and later. However, because of our prior net operating losses and research credit carryovers, our tax years from June 30, 2007 are open to audit. We do not anticipate a significant change to the total amount of unrecognized tax benefits within the next 12 months. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 8. SHARE-BASED COMPENSATION Our 2016 Equity Incentive Plan provides for the award of up to 1,500,000 200,000 372,000 Performance Awards In October 2023, the Compensation Committee reallocated an additional 15,200 10.17 31,000 30,000 76,000 91,000 86,000 1.23 On July 1, 2022, it was determined by the Compensation Committee of our Board of Directors that the vesting of performance awards for 37,500 23,641 223,000 Non-Qualified Stock Options In December 2020, the Compensation Committee of our Board of Directors granted 310,000 The vesting of these stock options is tied to the completion of service periods that range from 18 months to 10.5 years from the date of grant and the achievement of our common stock trading at certain pre-determined prices. 16.72 5,000 6.69 168,000 503,000 479,000 1.8 Employee Stock Purchase Plan In September 2014, our Board approved the establishment of an Employee Stock Purchase Plan (the “ESPP”), which was approved by our shareholders at our 2014 Annual Meeting. The ESPP conforms to the provisions of Section 423 of the Internal Revenue Code, has coterminous offering and purchase periods of six months, and bases the pricing to purchase shares of our common stock on a formula so as to result in a per share purchase price that approximates a 15% discount from the market price of a share of our common stock at the end of the purchase period 704,715 During the three months ended March 31, 2024 and 2023, we recorded ESPP share-based compensation expense in the amount of $ 3,000 8,000 983 2,956 18.32 14.79 9,000 14,000 35,502 |
MAJOR CUSTOMERS AND SUPPLIERS
MAJOR CUSTOMERS AND SUPPLIERS | 9 Months Ended |
Mar. 31, 2024 | |
Risks and Uncertainties [Abstract] | |
MAJOR CUSTOMERS AND SUPPLIERS | NOTE 9. MAJOR CUSTOMERS AND SUPPLIERS Information with respect to customers accounted for sales in excess of 10% of our total sales either of three-month and the nine-month periods ended March 31, 2024 and 2023, is as follows (in thousands, except percentages): Schedule of sales by major customers Three Months Ended March 31, 2024 2023 Amount Percent of Total Amount Percent of Total Net sales $ 14,293 100 % $ 13,079 100 % Customer concentration: Customer 1 $ 10,679 75 % $ 8,622 66 % Customer 2 1,385 10 % 2,059 16 % Total $ 12,064 85 % $ 10,681 82 % Nine Months Ended March 31, 2024 2023 Amount Percent of Total Amount Percent of Total Net sales $ 38,819 100 % $ 35,448 100 % Customer concentration: Customer 1 $ 27,491 71 % $ 23,578 66 % Customer 2 4,087 10 % 5,912 17 % Total $ 31,578 81 % $ 29,490 83 % Information with respect to accounts receivable from those customers who comprised more than 10% of our gross accounts receivable at either March 31, 2024 or June 30, 2023, is as follows (in thousands, except percentages): Schedule of accounts receivable March 31, 2024 June 30, 2023 Total gross accounts receivable $ 12,517 100 % $ 9,952 100 % Customer concentration: Customer 1. $ 10,117 81 % $ 7,231 73 % Customer 2. 1,625 13 % 1,951 19 % Total. $ 11,742 94 % $ 9,182 92 % During the three and nine months ended March 31, 2024 and 2023, we had two and three suppliers, respectively, accounting for 10% or more of total inventory purchases. Amounts owed to the suppliers who comprised more than 10% of total accounts payable at either March 31, 2024 or June 30, 2023, is as follows (in thousands, except percentages). Schedule of accounts payable March 31, 2024 June 30, 2023 Total accounts payable $ 3,435 100 % $ 2,261 100 % Supplier concentration: Supplier 1. $ 1,014 29 % $ 620 27 % Supplier 2. 365 11 % 158 7 % Supplier 3. 349 10 % 41 2 % Total. $ 1,728 50 % $ 819 36 % |
NOTES PAYABLE AND FINANCING TRA
NOTES PAYABLE AND FINANCING TRANSACTIONS | 9 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE AND FINANCING TRANSACTIONS | NOTE 10. NOTES PAYABLE AND FINANCING TRANSACTIONS Minnesota Bank & Trust On November 6, 2020 (the “Closing Date”), PDEX Franklin, our wholly owned subsidiary, purchased an approximate 25,000 5.2 26,037 The Property Loan bears interest at a fixed rate of 3.55 30,000 November 1, 2030 3.1 Any prepayment of the Property Loan (other than monthly scheduled interest and principal payments), is subject to a prepayment fee equal to 4% of the principal amount prepaid for any prepayment made during the first or second year, 3% of the principal amount prepaid for any prepayment made during the third or fourth year, 2% of the principal amount prepaid for any prepayment made during the fifth or sixth year, and 1% of the principal amount prepaid for any prepayment made during the seventh or eighth year. 4,599,000 On the Closing Date, we also entered into an Amended and Restated Credit Agreement with MBT (the “Amended Credit Agreement”), providing for a $ 7,525,000 1,000,000 2,000,000 3,770,331 3,000,000 1,000,000 The Term Loan A matures on November 1, 2027 3.84 97,000 4,086,000 The Term Loan B matures on November 1, 2027 3.84 15,000 608,000 On December 29, 2022 (the “Amendment Date”), we entered into Amendment No. 2 to Amended and Restated Credit Agreement (the “Amendment”) with MBT, which amends the Amended Credit Agreement and provides for a supplemental line of credit in the amount of $ 3,000,000 The Revolving Loan was also amended (the “Amended Revolving Loan”) in connection with the Amendment to extend the maturity date from November 5, 2023 to December 29, 2024 2,000,000 7,000,000 2,500,000 16,000 The Amended Revolving Loan and Supplemental Loan bear interest at an annual rate equal to the greater of (a) 5.0 Any payment on the Term Loan A, the Term Loan B, the Amended Revolving Loan or the Supplemental Loan (collectively, the “Loans”) not made within seven days after the due date is subject to a late payment fee equal to 5 3 The Amended Credit Agreement, Amended Security Agreement, Term Note A, Term Note B, Amended Revolving Note and Supplemental Note contain representations and warranties, affirmative, negative and financial covenants, and events of default that are customary for loans of this type. We believe that we are in compliance with all of our debt covenants as of March 31, 2024, but there can be no assurance that we will remain in compliance for the duration of the term of these loans. |
COMMON STOCK
COMMON STOCK | 9 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
COMMON STOCK | NOTE 11. COMMON STOCK Share Repurchase Program 90,605 96,890 1,723,000 1,830,000 11,576 86,422 198,000 1,547,000 1,293,338 19 |
LEASES
LEASES | 9 Months Ended |
Mar. 31, 2024 | |
Leases | |
LEASES | NOTE 12. LEASES Our operating lease right-of-use asset and long-term liability are presented separately on our condensed consolidated balance sheet. The current portion of our operating lease liability as of March 31, 2024, in the amount of $ 445,000 As of March 31, 2024, the maturity of our lease liability is as follows (in thousands): Schedule of maturity of lease liability Operating Lease Fiscal Year: 2024 $ 130 2025 535 2026 551 2027 567 2028 143 Total lease payments 1,926 Less imputed interest: (181 ) Total $ 1,745 As of March 31, 2024, the operating lease for our Irvine, California headquarters has a remaining lease term of three years and six months and an imputed interest rate of 5.53 143,000 425,000 139,000 418,000 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 13. COMMITMENTS AND CONTINGENCIES Legal Matters We may be involved from time to time in various legal proceedings arising either in the ordinary course of our business or incidental to our business. There can be no certainty, however, that we may not ultimately incur liability or that such liability will not be material and adverse. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 14. SUBSEQUENT EVENTS We have evaluated subsequent events through the date of this filing. There were no subsequent events that require disclosure. |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Schedule of changes in financial statement | Schedule of changes in financial statement As Previously Reported Restatement As Restated Unrealized gain(loss) on investments $ (177 ) $ 419 (a) $ 242 Total other income (expense) (297 ) 419 122 Income before income taxes 1,768 419 2,187 Income tax expense 455 115 (b) 570 Net income 1,313 304 1,617 Basic income per share $ 0.37 $ 0.09 $ 0.46 Diluted income per share $ 0.36 $ 0.09 $ 0.45 (a) This amount represents the unrealized gain on the Monogram Warrant for the three months ended March 31, 2023. (b) This amount represents the income tax expense related to the unrealized gain on the Monogram Warrant for the three months ended March 31, 2023. Nine months ended March 31, 2023 Unaudited Income Statement As Previously Reported Restatement As Restated Unrealized gain(loss) on investments $ 231 $ 3,176 (a) $ 3,407 Total other income (expense) 84 3,176 3,260 Income before income taxes 4,236 3,176 7,412 Income tax expense 968 872 (b) 1,840 Net income 3,268 2,304 5,572 Basic income per share $ 0.92 $ 0.64 $ 1.56 Diluted income per share $ 0.89 $ 0.63 $ 1.52 (a) This amount represents the unrealized gain on the Monogram Warrant for the nine months ended March 31, 2023. (b) This amount represents the income tax expense related to the unrealized gain on the Monogram Warrant for the nine months ended March 31, 2023. |
NET SALES (Tables)
NET SALES (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of net sales | Schedule of disaggregation of net sales Three Months Ended Nine Months Ended 2024 2023 2024 2023 Net Sales: Over-time revenue recognition $ 234 $ 970 $ 762 $ 2,361 Point-in-time revenue recognition 14,059 12,109 38,057 33,087 Total net sales $ 14,293 $ 13,079 $ 38,819 $ 35,448 |
Schedule of contract assets and liability | Schedule of contract assets and liability As of and for the Three Months Ended As of and for the Nine Months Ended 2024 2023 2024 2023 Contract assets beginning balance $ 412 $ 877 $ 494 $ 710 Expenses incurred during the year 106 362 376 1,108 Amounts reclassified to cost of sales (179 ) (935 ) (505 ) (1,497 ) Amounts allocated to discounts for standalone selling price (8 ) (25 ) (34 ) (42 ) Contract assets ending balance $ 331 $ 279 $ 331 $ 279 As of and for the Three Months Ended As of and for the Nine Months Ended 2024 2023 2024 2023 Contract liabilities beginning balance $ — $ 851 $ — $ 1,013 Payments received from customers 225 41 267 741 Amounts reclassified to revenue (190 ) (835 ) (232 ) (1,697 ) Contract liabilities ending balance $ 35 $ 57 $ 35 $ 57 |
COMPOSITION OF CERTAIN FINANC_2
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of inventory | Schedule of inventory March 31, June 30, Raw materials /purchased components $ 6,383 $ 8,824 Work in process 3,944 3,686 Sub-assemblies/finished components 2,379 2,387 Finished goods 1,536 1,270 Total inventory $ 14,242 $ 16,167 |
Schedule of investments | Schedule of investments March 31, 2024 June 30, 2023 Current: Marketable equity securities – short-term $ 4,577 $ 1,134 Long-term: Warrant — 6,160 Marketable equity securities – long-term 1,543 1,361 Total Investments $ 6,120 $ 8,655 |
Schedule of land and building | Schedule of land and building March 31, June 30, Land $ 3,684 $ 3,684 Building 2,815 2,815 Total 6,499 6,499 Less: accumulated depreciation (320 ) (250 ) $ 6,179 $ 6,249 |
Schedule of intangibles | Schedule of intangibles March 31, June 30, Patent-related costs $ 208 $ 208 Less accumulated amortization (147 ) (127 ) $ 61 $ 81 |
WARRANTY (Tables)
WARRANTY (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Guarantees and Product Warranties [Abstract] | |
Schedule of accrual warranty costs | Schedule of accrual warranty costs As of and for the 2024 2023 Beginning balance $ 194 $ 344 Accruals during the period 102 26 Changes in estimates of prior period warranty accruals — (103 ) Warranty amortization and utilization (23 ) (15 ) Ending balance $ 273 $ 252 As of and for the 2024 2023 Beginning balance $ 200 $ 340 Accruals during the period 155 135 Changes in estimates of prior period warranty accruals 7 (89 ) Warranty amortization and utilization (89 ) (134 ) Ending balance $ 273 $ 252 |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of net income per share | Schedule of net income per share Three Months Ended Nine Months Ended 2024 2023 2024 2023 Basic: (restated) (restated) Net income $ 655 $ 1,617 $ 540 $ 5,572 Weighted average shares outstanding 3,451 3,548 3,531 3,580 Basic income per share $ 0.19 $ 0.46 $ 0.15 $ 1.56 Three Months Ended Nine Months Ended 2024 2023 2024 2023 Diluted: Net income $ 655 $ 1,617 $ 540 $ 5,572 Weighted average shares outstanding 3,451 3,548 3,531 3,580 Effect of dilutive securities 73 75 73 76 Weighted average shares used in calculation of diluted earnings per share 3,524 3,623 3,604 3,656 Diluted income per share $ 0.19 $ 0.45 $ 0.15 $ 1.52 |
MAJOR CUSTOMERS AND SUPPLIERS (
MAJOR CUSTOMERS AND SUPPLIERS (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Concentration Risk [Line Items] | |
Schedule of sales by major customers | Schedule of sales by major customers Three Months Ended March 31, 2024 2023 Amount Percent of Total Amount Percent of Total Net sales $ 14,293 100 % $ 13,079 100 % Customer concentration: Customer 1 $ 10,679 75 % $ 8,622 66 % Customer 2 1,385 10 % 2,059 16 % Total $ 12,064 85 % $ 10,681 82 % Nine Months Ended March 31, 2024 2023 Amount Percent of Total Amount Percent of Total Net sales $ 38,819 100 % $ 35,448 100 % Customer concentration: Customer 1 $ 27,491 71 % $ 23,578 66 % Customer 2 4,087 10 % 5,912 17 % Total $ 31,578 81 % $ 29,490 83 % |
Accounts Receivable [Member] | |
Concentration Risk [Line Items] | |
Schedule of accounts payable | Schedule of accounts receivable March 31, 2024 June 30, 2023 Total gross accounts receivable $ 12,517 100 % $ 9,952 100 % Customer concentration: Customer 1. $ 10,117 81 % $ 7,231 73 % Customer 2. 1,625 13 % 1,951 19 % Total. $ 11,742 94 % $ 9,182 92 % |
Accounts Payable [Member] | |
Concentration Risk [Line Items] | |
Schedule of accounts payable | Schedule of accounts payable March 31, 2024 June 30, 2023 Total accounts payable $ 3,435 100 % $ 2,261 100 % Supplier concentration: Supplier 1. $ 1,014 29 % $ 620 27 % Supplier 2. 365 11 % 158 7 % Supplier 3. 349 10 % 41 2 % Total. $ 1,728 50 % $ 819 36 % |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Leases | |
Schedule of maturity of lease liability | Schedule of maturity of lease liability Operating Lease Fiscal Year: 2024 $ 130 2025 535 2026 551 2027 567 2028 143 Total lease payments 1,926 Less imputed interest: (181 ) Total $ 1,745 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |||
Unrealized gain(loss) on investments | $ (1,192) | $ 242 | $ (3,785) | $ 3,407 | ||
Total other income (expense) | 122 | 3,260 | ||||
Income before income taxes | 913 | 2,187 | 704 | 7,412 | ||
Income tax expense | 258 | 570 | 164 | 1,840 | ||
Net income | $ 655 | $ 1,617 | $ 540 | $ 5,572 | ||
Basic income per share | $ 0.19 | $ 0.46 | $ 0.15 | $ 1.56 | ||
Diluted income per share | $ 0.19 | $ 0.45 | $ 0.15 | $ 1.52 | ||
Previously Reported [Member] | ||||||
Unrealized gain(loss) on investments | $ (177) | $ 231 | ||||
Total other income (expense) | (297) | 84 | ||||
Income before income taxes | 1,768 | 4,236 | ||||
Income tax expense | 455 | 968 | ||||
Net income | $ 1,313 | $ 3,268 | ||||
Basic income per share | $ 0.37 | $ 0.92 | ||||
Diluted income per share | $ 0.36 | $ 0.89 | ||||
Revision of Prior Period, Error Correction, Adjustment [Member] | ||||||
Unrealized gain(loss) on investments | $ 419 | [1] | $ 3,176 | [2] | ||
Total other income (expense) | 419 | 3,176 | ||||
Income before income taxes | 419 | 3,176 | ||||
Income tax expense | 115 | [3] | 872 | [4] | ||
Net income | $ 304 | $ 2,304 | ||||
Basic income per share | $ 0.09 | $ 0.64 | ||||
Diluted income per share | $ 0.09 | $ 0.63 | ||||
[1]This amount represents the unrealized gain on the Monogram Warrant for the three months ended March 31, 2023.[2]This amount represents the unrealized gain on the Monogram Warrant for the nine months ended March 31, 2023.[3]This amount represents the income tax expense related to the unrealized gain on the Monogram Warrant for the three months ended March 31, 2023.[4]This amount represents the income tax expense related to the unrealized gain on the Monogram Warrant for the nine months ended March 31, 2023. |
NET SALES (Net Sales) (Details)
NET SALES (Net Sales) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Net Sales: | ||||
Over-time revenue recognition | $ 234 | $ 970 | $ 762 | $ 2,361 |
Point-in-time revenue recognition | 14,059 | 12,109 | 38,057 | 33,087 |
Total net sales | $ 14,293 | $ 13,079 | $ 38,819 | $ 35,448 |
NET SALES (Contract Assets and
NET SALES (Contract Assets and Liability) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | ||||
Contract assets beginning balance | $ 412 | $ 877 | $ 494 | $ 710 |
Expenses incurred during the year | 106 | 362 | 376 | 1,108 |
Amounts reclassified to cost of sales | (179) | (935) | (505) | (1,497) |
Amounts allocated to discounts for standalone selling price | (8) | (25) | (34) | (42) |
Contract assets ending balance | 331 | 279 | 331 | 279 |
Contract liabilities beginning balance | 0 | 851 | 0 | 1,013 |
Payments received from customers | 225 | 41 | 267 | 741 |
Amounts reclassified to revenue | (190) | (835) | (232) | (1,697) |
Contract liabilities ending balance | $ 35 | $ 57 | $ 35 | $ 57 |
NET SALES (Details Narrative)
NET SALES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | ||||
Deferred revenue recognized | $ 0 | $ 405,000 | $ 0 | $ 956,000 |
Deferred revenue | $ 35,000 | $ 35,000 |
COMPOSITION OF CERTAIN FINANC_3
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Inventory) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials /purchased components | $ 6,383 | $ 8,824 |
Work in process | 3,944 | 3,686 |
Sub-assemblies/finished components | 2,379 | 2,387 |
Finished goods | 1,536 | 1,270 |
Total inventory | $ 14,242 | $ 16,167 |
COMPOSITION OF CERTAIN FINANC_4
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Investments) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
Current: | ||
Marketable equity securities – short-term | $ 4,577 | $ 1,134 |
Long-term: | ||
Warrant | 0 | 6,160 |
Marketable equity securities – long-term | 1,543 | 1,361 |
Total Investments | $ 6,120 | $ 8,655 |
COMPOSITION OF CERTAIN FINANC_5
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Land and Building) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
Property, Plant and Equipment [Line Items] | ||
Land and building, gross | $ 6,499 | $ 6,499 |
Less: accumulated depreciation | (320) | (250) |
Land and building, net | 6,179 | 6,249 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Land and building, gross | 3,684 | 3,684 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Land and building, gross | $ 2,815 | $ 2,815 |
COMPOSITION OF CERTAIN FINANC_6
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Intangibles) (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Patent-related costs | $ 208 | $ 208 |
Less accumulated amortization | (147) | (127) |
Intangible assets, net | $ 61 | $ 81 |
COMPOSITION OF CERTAIN FINANC_7
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Nov. 06, 2020 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | Oct. 06, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | |||||||
Available for sale securities aggregate cost | $ 3,964,000 | $ 3,964,000 | $ 2,714,000 | ||||
Investments included net unrealized gains (losses) | 2,200,000 | 219,000 | |||||
Gross unrealized gains | 2,400,000 | 67,000 | |||||
Gross unrealized losses | 253,000 | 286,000 | |||||
Marketable equity securities | 1,000,000 | 1,000,000 | $ 1,100,000 | ||||
Cash | $ 1,250,000 | ||||||
Common stock shares | 1,828,551 | ||||||
Exercise unrealized loss investment | 38,000 | ||||||
Payment to acquired property plant equipment | 876,000 | $ 822,000 | |||||
Depreciation expenses | 23,000 | $ 23,000 | 70,000 | 70,000 | |||
Amortization | 7,000 | $ 10,000 | 21,000 | $ 31,000 | |||
Finite-Lived Intangible Asset, Expected Amortization, Remainder of Fiscal Year | 7,000 | 7,000 | |||||
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Two | $ 28,000 | $ 28,000 | |||||
Franklin [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Payment to acquired property plant equipment | $ 6,500,000 | ||||||
Payment of property plant equipment | 1,300,000 | ||||||
Bank financed | $ 5,200,000 |
WARRANTY (Accrual Warranty Cost
WARRANTY (Accrual Warranty Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Guarantees and Product Warranties [Abstract] | ||||
Beginning balance | $ 194 | $ 344 | $ 200 | $ 340 |
Accruals during the period | 102 | 26 | 155 | 135 |
Changes in estimates of prior period warranty accruals | 0 | (103) | 7 | (89) |
Warranty amortization | (23) | (15) | (89) | (134) |
Ending balance | $ 273 | $ 252 | $ 273 | $ 252 |
WARRANTY (Details Narrative)
WARRANTY (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | |
Warranty reserve | $ 273,000 | $ 200,000 | |||
Product Sales and Changes [Member] | |||||
Warranty expense | $ 102,000 | $ (77,000) | $ 162,000 | $ 46,000 |
NET INCOME PER SHARE (Details)
NET INCOME PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Basic: | ||||
Net income | $ 655 | $ 1,617 | $ 540 | $ 5,572 |
Weighted average shares outstanding | 3,451 | 3,548 | 3,531 | 3,580 |
Basic income per share | $ 0.19 | $ 0.46 | $ 0.15 | $ 1.56 |
Diluted: | ||||
Net income | $ 655 | $ 1,617 | $ 540 | $ 5,572 |
Weighted average shares outstanding | 3,451 | 3,548 | 3,531 | 3,580 |
Effect of dilutive securities | 73 | 75 | 73 | 76 |
Weighted average shares used in calculation of diluted earnings per share | 3,524 | 3,623 | 3,604 | 3,656 |
Diluted income per share | $ 0.19 | $ 0.45 | $ 0.15 | $ 1.52 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | Mar. 31, 2024 | Mar. 31, 2023 |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits | $ 69,000 | $ 59,000 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||||
Jul. 02, 2022 | Oct. 31, 2023 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2014 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Weighted-average remaining contractual life | 1 year 2 months 23 days | |||||||||
Performance Awards [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Share-based compensation expense performance awards | $ 31,000 | $ 30,000 | $ 76,000 | $ 91,000 | ||||||
Unrecognized compensation cost | $ 86,000 | $ 86,000 | ||||||||
Number of vesting performance awards | 37,500 | |||||||||
Number of shares issued | 23,641 | |||||||||
Payment for payroll tax liabilities | $ 223,000 | |||||||||
Non Qualified Stock Options [Member] | Directors And Certain Employees [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Weighted average fair value | $ 6.69 | $ 16.72 | ||||||||
Previously Forfeited Awards [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Number of awards granted during period | 15,200 | 5,000 | ||||||||
Weighted average fair value | $ 10.17 | |||||||||
Equity Incentive Plan 2016 [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Number of shares available to be awarded | 1,500,000 | 1,500,000 | ||||||||
Equity Incentive Plan 2016 [Member] | Performance Awards [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Number of awards granted during period | 200,000 | |||||||||
Equity Incentive Plan 2016 [Member] | Non Qualified Stock Options [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Number of awards granted during period | 372,000 | |||||||||
Equity Incentive Plan 2016 [Member] | Non Qualified Stock Options [Member] | Directors And Certain Employees [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Number of awards granted during period | 310,000 | |||||||||
Unrecognized compensation cost | $ 1,800,000 | $ 1,800,000 | ||||||||
Period for award description | The vesting of these stock options is tied to the completion of service periods that range from 18 months to 10.5 years from the date of grant and the achievement of our common stock trading at certain pre-determined prices. | |||||||||
Share-based compensation expense non-qualified stock options | 168,000 | 168,000 | 503,000 | 479,000 | ||||||
Employee Stock Purchase Plan [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Share-based compensation expense performance awards | $ 3,000 | $ 8,000 | $ 9,000 | $ 14,000 | ||||||
Description of employee stock purchase plan | offering and purchase periods of six months, and bases the pricing to purchase shares of our common stock on a formula so as to result in a per share purchase price that approximates a 15% discount from the market price of a share of our common stock at the end of the purchase period | |||||||||
Number of shares reserved for future issuance | 704,715 | |||||||||
Shares purchased | 983 | 2,956 | ||||||||
Contributions price | $ 18.32 | $ 14.79 | ||||||||
Number of shares purchased total | 35,502 |
MAJOR CUSTOMERS AND SUPPLIERS_2
MAJOR CUSTOMERS AND SUPPLIERS (Sales) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Concentration Risk [Line Items] | ||||
Net sales | $ 14,293 | $ 13,079 | $ 38,819 | $ 35,448 |
Sales [Member] | Customer Concentration Risk [Member] | Customer [Member] | ||||
Concentration Risk [Line Items] | ||||
Net sales | $ 14,293 | $ 13,079 | $ 38,819 | $ 35,448 |
Percentage of concentrations risk | 100% | 100% | 100% | 100% |
Sales [Member] | Customer Concentration Risk [Member] | Customer 1 [Member] | ||||
Concentration Risk [Line Items] | ||||
Net sales | $ 10,679 | $ 8,622 | $ 27,491 | $ 23,578 |
Percentage of concentrations risk | 75% | 66% | 71% | 66% |
Sales [Member] | Customer Concentration Risk [Member] | Customer 2 [Member] | ||||
Concentration Risk [Line Items] | ||||
Net sales | $ 1,385 | $ 2,059 | $ 4,087 | $ 5,912 |
Percentage of concentrations risk | 10% | 16% | 10% | 17% |
Sales [Member] | Customer Concentration Risk [Member] | Total Customer [Member] | ||||
Concentration Risk [Line Items] | ||||
Net sales | $ 12,064 | $ 10,681 | $ 31,578 | $ 29,490 |
Percentage of concentrations risk | 85% | 82% | 81% | 83% |
MAJOR CUSTOMERS AND SUPPLIERS_3
MAJOR CUSTOMERS AND SUPPLIERS (Accounts Receivable) (Details) - Accounts Receivable [Member] - Customer Concentration Risk [Member] - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Jun. 30, 2023 | |
Customer [Member] | ||
Concentration Risk [Line Items] | ||
Total gross accounts receivable | $ 12,517 | $ 9,952 |
Percentage of concentrations risk | 100% | 100% |
Customer 1 [Member] | ||
Concentration Risk [Line Items] | ||
Total gross accounts receivable | $ 10,117 | $ 7,231 |
Percentage of concentrations risk | 81% | 73% |
Customer 2 [Member] | ||
Concentration Risk [Line Items] | ||
Total gross accounts receivable | $ 1,625 | $ 1,951 |
Percentage of concentrations risk | 13% | 19% |
Total Customer [Member] | ||
Concentration Risk [Line Items] | ||
Total gross accounts receivable | $ 11,742 | $ 9,182 |
Percentage of concentrations risk | 94% | 92% |
MAJOR CUSTOMERS AND SUPPLIERS_4
MAJOR CUSTOMERS AND SUPPLIERS (Accounts Payable) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Jun. 30, 2023 | |
Concentration Risk [Line Items] | ||
Total accounts payable | $ 3,435 | $ 2,261 |
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Supplier [Member] | ||
Concentration Risk [Line Items] | ||
Total accounts payable | $ 3,435 | $ 2,261 |
Percentage of concentrations risk | 100% | 100% |
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Supplier 1 [Member] | ||
Concentration Risk [Line Items] | ||
Total accounts payable | $ 1,014 | $ 620 |
Percentage of concentrations risk | 29% | 27% |
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Supplier 2 [Member] | ||
Concentration Risk [Line Items] | ||
Total accounts payable | $ 365 | $ 158 |
Percentage of concentrations risk | 11% | 7% |
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Supplier 3 [Member] | ||
Concentration Risk [Line Items] | ||
Total accounts payable | $ 349 | $ 41 |
Percentage of concentrations risk | 10% | 2% |
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Total Supplier [Member] | ||
Concentration Risk [Line Items] | ||
Total accounts payable | $ 1,728 | $ 819 |
Percentage of concentrations risk | 50% | 36% |
NOTES PAYABLE AND FINANCING T_2
NOTES PAYABLE AND FINANCING TRANSACTIONS (Details Narrative) | 3 Months Ended | 9 Months Ended | ||
Nov. 06, 2020 USD ($) ft² | Mar. 31, 2021 USD ($) | Mar. 31, 2024 USD ($) | Dec. 29, 2022 USD ($) | |
Term Loan A [Member] | Minnesota Bank And Trust [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 7,525,000 | |||
Periodic payment of principal and interest | $ 97,000 | |||
Maturity date | Nov. 01, 2027 | |||
Debt outstanding | $ 3,770,331 | $ 4,086,000 | ||
Amount borrowed for repurchase of common stock | $ 3,000,000 | |||
Interest rate | 3.84% | |||
Term Loan B [Member] | Minnesota Bank And Trust [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 1,000,000 | |||
Periodic payment of principal and interest | $ 15,000 | |||
Maturity date | Nov. 01, 2027 | |||
Debt outstanding | 608,000 | |||
Amount borrowed for property improvements | $ 1,000,000 | |||
Interest rate | 3.84% | |||
Revolving Loan [Member] | Minnesota Bank And Trust [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 2,000,000 | |||
Loan origination fees paid | 16,000 | |||
Interest rate | 5% | |||
Debt instrument, maturity date description | the maturity date from November 5, 2023 to December 29, 2024 | |||
Loan payable | 2,500,000 | |||
Revolving Loan [Member] | Minnesota Bank And Trust [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Loan facility amount | $ 2,000,000 | |||
Revolving Loan [Member] | Minnesota Bank And Trust [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Loan facility amount | 7,000,000 | |||
Supplemental Loan [Member] | Restated Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit amount | $ 3,000,000 | |||
Minnesota Bank And Trust [Member] | ||||
Debt Instrument [Line Items] | ||||
Percentage of late payment fee | 5% | |||
Increased percentage of default late payment | 3% | |||
Minnesota Bank And Trust [Member] | Property Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 5,200,000 | |||
Loan origination fees paid | $ 26,037 | |||
Interest rate | 3.55% | |||
Periodic payment of principal and interest | $ 30,000 | |||
Maturity date | Nov. 01, 2030 | |||
Balloon payment | $ 3,100,000 | |||
Description of prepayment | Any prepayment of the Property Loan (other than monthly scheduled interest and principal payments), is subject to a prepayment fee equal to 4% of the principal amount prepaid for any prepayment made during the first or second year, 3% of the principal amount prepaid for any prepayment made during the third or fourth year, 2% of the principal amount prepaid for any prepayment made during the fifth or sixth year, and 1% of the principal amount prepaid for any prepayment made during the seventh or eighth year. | |||
Debt outstanding | $ 4,599,000 | |||
Franklin Property [Member] | ||||
Debt Instrument [Line Items] | ||||
Building land | ft² | 25,000 |
COMMON STOCK (Details Narrative
COMMON STOCK (Details Narrative) - Tenb 51 Plan [Member] - Share Repurchase Program [Member] - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2019 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Number of shares repurchased, shares | 90,605 | 11,576 | 96,890 | 86,422 | |
Number of shares repurchased, value | $ 1,723,000 | $ 198,000 | $ 1,830,000 | $ 1,547,000 | |
Cumulative Basis [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Number of shares repurchased, shares | 1,293,338 | ||||
Number of shares repurchased, value | $ 19,000,000 |
LEASES (Maturity of Lease Liabi
LEASES (Maturity of Lease Liability) (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Leases | |
2024 | $ 130 |
2025 | 535 |
2026 | 551 |
2027 | 567 |
2028 | 143 |
Total lease payments | 1,926 |
Less imputed interest: | (181) |
Total | $ 1,745 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Leases | ||||
Operating lease liability current portion | $ 445,000 | $ 445,000 | ||
Imputed interest rate, percentage | 5.53% | 5.53% | ||
Lease liability | $ 143,000 | $ 139,000 | $ 425,000 | $ 418,000 |