Pro-Dex (PDEX) 10-Q 31 Oct 24 2025 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Sep. 30, 2024	Oct. 31, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2024
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2025
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		3,259,338

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024
Current Assets:
Cash and cash equivalents	$ 3,081	$ 2,631
Investments	4,738	4,217
Accounts receivable, net of allowance for credit losses of $3 and $0 at September 30, 2024 and at June 30, 2024, respectively	13,456	13,887
Deferred costs	211	262
Inventory	16,604	15,269
Prepaid expenses and other current assets	412	345
Total current assets	38,502	36,611
Land and building, net	6,132	6,155
Equipment and leasehold improvements, net	5,183	5,024
Right-of-use asset, net	1,370	1,473
Intangibles, net	47	54
Deferred income taxes	1,555	1,555
Investments	1,475	1,563
Other assets	44	42
Total assets	54,308	52,477
Current Liabilities:
Accounts payable	4,442	4,513
Accrued liabilities	4,019	3,359
Income taxes payable	423	632
Deferred revenue		14
Notes payable	2,401	4,374
Total current liabilities	11,285	12,892
Lease liability, net of current portion	1,063	1,182
Notes payable, net of current portion	11,083	7,536
Total non-current liabilities	12,146	8,718
Total liabilities	23,431	21,610
Shareholders’ Equity:
Common stock; no par value; 50,000,000 shares authorized; 3,297,510 and 3,363,412 shares issued and outstanding at September 30, 2024 and June 30, 2024, respectively	1,461	3,917
Retained earnings	29,416	26,950
Total shareholders’ equity	30,877	30,867
Total liabilities and shareholders’ equity	$ 54,308	$ 52,477

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024
Statement of Financial Position [Abstract]
Net of allowance for expected credit losses	$ 3	$ 0
Common stock, no par value	$ 0	$ 0
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	3,297,510	3,363,412
Common stock, shares outstanding	3,297,510	3,363,412

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
Net sales	$ 14,892	$ 11,938
Cost of sales	9,742	8,280
Gross profit	5,150	3,658
Operating expenses:
Selling expenses	48	25
General and administrative expenses	1,246	995
Research and development costs	843	805
Total operating expenses	2,137	1,825
Operating income	3,013	1,833
Other income (expense):
Interest and dividend income	25	24
Unrealized gain (loss) on investments	433	(2,553)
Interest expense	(152)	(133)
Total other income (loss)	306	(2,662)
Income (loss) before income taxes	3,319	(829)
Provision for income taxes	853	(214)
Net income (loss)	$ 2,466	$ (615)
Basic and diluted net income per share:
Basic net income (loss) per share	$ 0.76	$ (0.17)
Diluted net income (loss) per share	$ 0.75	$ (0.17)
Weighted-average common shares outstanding:
Basic	3,259,742	3,546,737
Diluted	3,292,142	3,546,737
Common shares outstanding	3,297,510	3,547,330

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Retained Earnings [Member]	Total
Balance, beginning of period at Jun. 30, 2023	$ 6,767	$ 24,823	$ 31,590
Share-based compensation expense	188
ESPP shares issued	32
Net income		(615)	(615)
Balance, end of period at Sep. 30, 2023	6,987	24,208	31,195
Balance, beginning of period at Jun. 30, 2024	3,917	26,950	30,867
Share-based compensation expense	113
Share repurchases	(2,311)
Shares withheld from common stock issued to pay employee payroll taxes	(273)
ESPP shares issued	15
Net income		2,466	2,466
Balance, end of period at Sep. 30, 2024	$ 1,461	$ 29,416	$ 30,877

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 2,466	$ (615)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	302	283
Share-based compensation	113	188
Unrealized (gain) loss on marketable equity investments	(433)	2,553
Non-cash lease (recovery)	(5)	(2)
Amortization of loan fees	10	4
Credit loss expense	3
Changes in operating assets and liabilities:
Accounts receivable and other receivables	428	(1,082)
Deferred costs	51	(97)
Inventory	(1,335)	(97)
Prepaid expenses and other assets	(69)	95
Accounts payable and accrued expenses	579	35
Deferred revenue	(14)
Income taxes	(209)	(873)
Net cash provided by operating activities	1,887	392
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of equipment and improvements	(431)	(126)
Net cash used in investing activities	(431)	(126)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on notes payable	(3,427)	(1,330)
Proceeds from Minnesota Bank & Trust loans, net of origination fees	4,990
Proceeds from stock option exercises and ESPP contributions	15	32
Payments of employee taxes on net issuance of common stock	(273)
Repurchases of common stock	(2,311)
Net cash used in financing activities	(1,006)	(1,298)
Net increase (decrease) in cash and cash equivalents	450	(1,032)
Cash and cash equivalents, beginning of period	2,631	2,936
Cash and cash equivalents, end of period	3,081	1,904
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	162	140
Cash paid during the period for income taxes:
Federal income tax payments	690	565
California income tax payments	372	74
Massachusetts income tax payments		21
Total income tax payments	$ 1,062	$ 660

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure [Table]
Net Income (Loss)	$ 2,466	$ (615)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 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	3 Months Ended
	Sep. 30, 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 principles generally in United States (“U.S. GAAP”) interim financial information and with the instructions to Form 10-Q and Regulation S-K. Accordingly, they not include all of the information and footnotes required U.S. GAAP for complete financial statements. These financial statements should be read in conjunction with the financial statements presented in our Annual Report Form 10-K for the fiscal year ended June 30, 2024. In the opinion of management, all adjustments considered necessary for fair presentation have been included and consist of a normal recurring nature. 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, 2024. Recently Issued and Not Yet Adopted Accounting Pronouncements In December 2023, the FASB issued ASU No. 2023-09, Income Taxes: Improvements to Income Tas Disclosures (Topic 740) In November 2023, the FASB issued ASU 2023-07, Segment Reporting: Improvements to Reportable Segment Disclosures (Topic280)

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	3 Months Ended
	Sep. 30, 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	3 Months Ended
	Sep. 30, 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 September 30, 2024 2023 Net Sales: Over-time revenue recognition $ 47 $ 190 Point-in-time revenue recognition 14,845 11,748 Total net sales $ 14,892 $ 11,938 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 months ended September 30, 2024 and 2023, we recorded $ 14,000 0 The following tables summarize our contract assets and liability balances (in thousands): Schedule of contract assets and liability As of and for the 2024 2023 Contract assets beginning balance $ 262 $ 494 Expenses incurred during the year 57 219 Amounts reclassified to cost of sales (102 ) (105 ) Amounts allocated to discounts for standalone selling price (6 ) (17 ) Contract assets ending balance $ 211 $ 591 As of and for the 2024 2023 Contract liabilities beginning balance $ 14 $ — Payments received from customers — 43 Amounts reclassified to revenue (14 ) (43 ) Contract liabilities ending balance $ — $ —

COMPOSITION OF CERTAIN FINANCIA

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS	3 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS	NOTE 4. COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS Investments Investments are stated at fair market value and consist of the following (in thousands): Schedule of investments September 30, 2024 June 30, Marketable equity securities Short-term $ 4,738 $ 4,217 Long-term 1,475 1,563 Total Investments $ 6,213 $ 5,780 Investments at September 30, 2024 and June 30, 2024 had an aggregate cost basis $ 4.0 2.2 (gross unrealized gains of $ 2.7 518,000 1.8 2.1 261,000 Of the total marketable equity securities at September 30, 2024 and June 30, 2024, $ 748,000 987,000 We invest surplus cash from time to time through our Investment Committee, which is comprised of one management director, Richard (“Rick”) Van Kirk, and two non-management directors, Raymond (“Ray”) Cabillot and Nicholas (“Nick”) Swenson, 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 either Nick or Ray or both may own from time to time either individually or through the investment funds that they manage, or other companies whose boards they sit on, such as Air T, Inc. 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 September 30, June 30, Raw materials/purchased components $ 7,438 $ 6,703 Work in process 5,728 5,103 Sub-assemblies/finished components 2,810 2,342 Finished goods 628 1,121 Total inventory $ 16,604 $ 15,269 Intangibles Intangibles consist of the following (in thousands): Schedule of intangibles September 30, June 30, Patent-related costs $ 208 $ 208 Less accumulated amortization (161 ) (154 ) $ 47 $ 54 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. Future amortization expense is estimated to be $ 27,000 20,000

WARRANTY

WARRANTY	3 Months Ended
	Sep. 30, 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 September 30, 2024 and June 30, 2024, the warranty reserve amounted to $ 300,000 277,000 Information regarding the accrual for warranty costs for the three months ended September 30, 2024 and 2023 are as follows (in thousands): Schedule of accrual warranty costs As of and for the 2024 2023 Beginning balance $ 277 $ 200 Accruals during the period 90 24 Changes in estimates of prior period warranty accruals (18 ) (2 ) Warranty amortization/utilization (49 ) (33 ) Ending balance $ 300 $ 189

NET INCOME (LOSS) PER SHARE

NET INCOME (LOSS) PER SHARE	3 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
NET INCOME (LOSS) PER SHARE	NOTE 6. NET INCOME (LOSS) PER SHARE We calculate basic net income (loss) per share by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period. Diluted income per share reflects the effects of potentially dilutive securities, 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 income per share computations. For the three months ended September 30, 2023, 64,800 dilutive securities, consisting exclusively of performance awards, were excluded from the diluted loss per share because the impact would be anti-dilutive. 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 September 30, 2024 2023 Basic: Net income (loss) $ 2,466 $ (615 ) Weighted-average shares outstanding 3,260 3,547 Basic earnings (loss) per share $ 0.76 $ (0.17 ) Diluted: Net income (loss) $ 2,466 $ (615 ) Weighted-average shares outstanding 3,260 3,547 Effect of dilutive securities 32 — Weighted-average shares used in calculation of diluted earnings per share 3,292 3,547 Diluted earnings (loss) per share $ 0.75 $ (0.17 )

INCOME TAXES

INCOME TAXES	3 Months Ended
	Sep. 30, 2024
Cash paid during the period for income taxes:
INCOME TAXES	NOTE 7. INCOME TAXES Deferred income taxes are provided on liability method whereby deferred tax assets and liabilities are recognized for temporary differences. Temporary differences are the differences between the reported amounts assets and liabilities and their tax bases. Deferred assets are reduced by valuation allowance when, in the opinion management, it is more likely than not that some portion or deferred tax assets will not realized. Deferred tax assets and liabilities are adjusted for the effects changes in tax laws and rates the date of enactment. Significant management judgment is required in determining our provision for income taxes and the recoverability our deferred tax assets. Such determination is based primarily on our historical taxable income or loss, with some consideration given our estimates future taxable income loss by jurisdictions in which we operate and the period over which our deferred tax assets would be recoverable. Our deferred tax asset is net of a valuation allowance in the amount of $ 71,000 We recognize accrued interest and penalties related to unrecognized tax benefits when applicable. As of September 30, 2024 and 2023, we recognized accrued interest of $ 6,000 7,000 26% We are subject to U.S. federal income tax, as well as income tax of California and Colorado, as well as Massachusetts through fiscal year ended June 30, 2024. We are currently open to audit under the statute of limitations by the Internal Revenue Service for the years ended June 30, 2021, and later. However, because of our prior net operating losses and research credit carryovers, our tax years from June 30, 2013, are open to audit. We do not anticipate significant change the total amount unrecognized tax benefits within the next months.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	3 Months Ended
	Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]
SHARE-BASED COMPENSATION	NOTE 8. SHARE-BASED COMPENSATION In September 2016, our Board approved the establishment of the 2016 Equity Incentive Plan, which was approved by our shareholders at our 2016 Annual Meeting. The 2016 Equity Incentive Plan provides for the award of up to 1,500,000 Performance Awards In December 2017, the Compensation Committee of our Board of Directors granted 200,000 completion of service periods that range from 7 months to 9.5 years at inception and the achievement of our common stock trading at certain pre-determined prices. 4.46 48,000 16.90 17,500 20.34 15,200 10.04 7,000 15,000 48,000 1.75 On July 1, 2024, it was determined by the Compensation Committee of our Board of Directors that the vesting of performance awards for 40,000 25,134 273,000 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 inception and the achievement of our common stock trading at certain pre-determined prices. 104,000 168,000 16.72 1.5 Employee Stock Purchase Plan In September 2014, our Board approved the establishment of an Employee Stock Purchase Plan (the “ESPP”). 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 In October 2023, our Board approved an amendment to the ESPP (the “ESPP Amendment”), which extended the term of the ESPP for an additional ten years from January 2025 to January 2035. The ESPP Amendment was approved by our shareholders at our 2023 Annual Meeting. During the three months ended September 30, 2024 and 2023, 940 2,021 16.22 15.82 36,442 3,000 6,000

MAJOR CUSTOMERS & SUPPLIERS

MAJOR CUSTOMERS & SUPPLIERS	3 Months Ended
	Sep. 30, 2024
Risks and Uncertainties [Abstract]
MAJOR CUSTOMERS & SUPPLIERS	NOTE 9. MAJOR CUSTOMERS & SUPPLIERS Information with respect to customers accounted for sales in excess of 10% of our total sales either of three-month periods ended September 30, 2024 and 2023 is as follows (in thousands, except percentages): Schedule of sales by major customers Three Months Ended September 30, 2024 2023 Amount Percent of Total Amount Percent of Total Total revenue $ 14,892 100 % $ 11,938 100 % Customer concentration: Customer 1 $ 11,377 76 % $ 8,375 70 % Customer 2 1,837 12 % 1,209 10 % Customer 3 760 5 % 1,165 10 % Total $ 13,974 93 % $ 10,749 90 % Information with respect to accounts receivable from those customers that comprised more than 10% of our gross accounts receivable at either September 30, 2024 and June 30, 2024 is as follows (in thousands, except percentages): Schedule of accounts receivable September 30, 2024 June 30, 2024 Total gross accounts receivable $ 13,459 100 % $ 13,887 100 % Customer concentration: Customer 1 $ 10,090 75 % $ 10,488 76 % Customer 2 2,581 19 % 2,423 17 % Total $ 12,671 94 % $ 12,911 93 % During the three months ended September 30, 2024 and 2023, we had two and three suppliers, respectively, that each accounted for more than 10% 1.7 248,000 1.4 416,000

NOTES PAYABLE AND FINANCING TRA

NOTES PAYABLE AND FINANCING TRANSACTIONS	3 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
NOTES PAYABLE AND FINANCING TRANSACTIONS	NOTE 10. NOTES PAYABLE AND FINANCING TRANSACTIONS Minnesota Bank & Trust (“MBT”) As previously disclosed, we have several outstanding term loans as well as a revolving loan (the “Amended Revolving Loan”) with MBT. Additionally, 5.0 3.0 10,000 The balance on our outstanding loans (in thousands) is as follows (exclusive of unamortized loan fees): Schedule of unamortized loan September 30, 2024 June 30, Notes Payable: Term Loan A $ 3,579 $ 3,834 Term Loan B 533 571 Term Loan C 4,916 — Property Loan 4,501 4,551 Amended Revolving Loan — 3,000 Total notes payable $ 13,529 $ 11,956 Term Loan A and B both bear interest at a fixed rate of 3.84% 3.55% 5% November 1, 2027 August 1, 2029 November 1, 2030 3.1 December 29, 2025 Any payment on Term Loan A, Term Loan B, Term Loan C, the Property Loan, or Amended Revolving 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, Term Note C, Property Note, and Amended Revolving 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 September 30, 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	3 Months Ended
	Sep. 30, 2024
Equity [Abstract]
COMMON STOCK	NOTE 11. COMMON STOCK Share Repurchase Program In December 2019, our Board approved a new share repurchase program authorizing us to repurchase up to 1 million shares of our common stock, as the prior repurchase plan authorized by our Board in 2013 was nearing completion. In accordance with, and as part of, these share repurchase programs, our Board has approved the adoption of several prearranged share repurchase plans intended to qualify for the safe harbor Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (“10b5-1 Plan” or “Plan”). During the three months ended September 30, 2024, we repurchased 91,976 2.3 1,473,325 23.0

LEASES

LEASES	3 Months Ended
	Sep. 30, 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 September 30, 2024, in the amount of $ 466,000 As of September 30, 2024, our operating lease has a remaining lease term of three years and an imputed interest rate of 5.53% 130,000 41,000 As of September 30, 2024, the maturity of our lease liability is as follows (in thousands): Schedule of maturities of lease liabilities Operating Lease Fiscal Year: 2025 $ 404 2026 551 2027 567 2028 143 Total lease payments 1,665 Less imputed interest (136 ) Total $ 1,529

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Sep. 30, 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 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 or adverse.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Sep. 30, 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.

NET SALES (Tables)

NET SALES (Tables)	3 Months Ended
	Sep. 30, 2024
Revenue from Contract with Customer [Abstract]
Schedule of disaggregation of net sales	Schedule of disaggregation of net sales Three months ended September 30, 2024 2023 Net Sales: Over-time revenue recognition $ 47 $ 190 Point-in-time revenue recognition 14,845 11,748 Total net sales $ 14,892 $ 11,938
Schedule of contract assets and liability	Schedule of contract assets and liability As of and for the 2024 2023 Contract assets beginning balance $ 262 $ 494 Expenses incurred during the year 57 219 Amounts reclassified to cost of sales (102 ) (105 ) Amounts allocated to discounts for standalone selling price (6 ) (17 ) Contract assets ending balance $ 211 $ 591 As of and for the 2024 2023 Contract liabilities beginning balance $ 14 $ — Payments received from customers — 43 Amounts reclassified to revenue (14 ) (43 ) Contract liabilities ending balance $ — $ —

COMPOSITION OF CERTAIN FINANC_2

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Tables)	3 Months Ended
	Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of investments	Schedule of investments September 30, 2024 June 30, Marketable equity securities Short-term $ 4,738 $ 4,217 Long-term 1,475 1,563 Total Investments $ 6,213 $ 5,780
Schedule of inventory	Schedule of inventory September 30, June 30, Raw materials/purchased components $ 7,438 $ 6,703 Work in process 5,728 5,103 Sub-assemblies/finished components 2,810 2,342 Finished goods 628 1,121 Total inventory $ 16,604 $ 15,269
Schedule of intangibles	Schedule of intangibles September 30, June 30, Patent-related costs $ 208 $ 208 Less accumulated amortization (161 ) (154 ) $ 47 $ 54

WARRANTY (Tables)

WARRANTY (Tables)	3 Months Ended
	Sep. 30, 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 $ 277 $ 200 Accruals during the period 90 24 Changes in estimates of prior period warranty accruals (18 ) (2 ) Warranty amortization/utilization (49 ) (33 ) Ending balance $ 300 $ 189

NET INCOME (LOSS) PER SHARE (Ta

NET INCOME (LOSS) PER SHARE (Tables)	3 Months Ended
	Sep. 30, 2024
Earnings Per Share [Abstract]
Schedule of net income per share	Schedule of net income per share Three Months Ended September 30, 2024 2023 Basic: Net income (loss) $ 2,466 $ (615 ) Weighted-average shares outstanding 3,260 3,547 Basic earnings (loss) per share $ 0.76 $ (0.17 ) Diluted: Net income (loss) $ 2,466 $ (615 ) Weighted-average shares outstanding 3,260 3,547 Effect of dilutive securities 32 — Weighted-average shares used in calculation of diluted earnings per share 3,292 3,547 Diluted earnings (loss) per share $ 0.75 $ (0.17 )

MAJOR CUSTOMERS & SUPPLIERS (Ta

MAJOR CUSTOMERS & SUPPLIERS (Tables)	3 Months Ended
	Sep. 30, 2024
Risks and Uncertainties [Abstract]
Schedule of sales by major customers	Schedule of sales by major customers Three Months Ended September 30, 2024 2023 Amount Percent of Total Amount Percent of Total Total revenue $ 14,892 100 % $ 11,938 100 % Customer concentration: Customer 1 $ 11,377 76 % $ 8,375 70 % Customer 2 1,837 12 % 1,209 10 % Customer 3 760 5 % 1,165 10 % Total $ 13,974 93 % $ 10,749 90 %
Schedule of accounts receivable	Schedule of accounts receivable September 30, 2024 June 30, 2024 Total gross accounts receivable $ 13,459 100 % $ 13,887 100 % Customer concentration: Customer 1 $ 10,090 75 % $ 10,488 76 % Customer 2 2,581 19 % 2,423 17 % Total $ 12,671 94 % $ 12,911 93 %

NOTES PAYABLE AND FINANCING T_2

NOTES PAYABLE AND FINANCING TRANSACTIONS (Tables)	3 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
Schedule of unamortized loan	Schedule of unamortized loan September 30, 2024 June 30, Notes Payable: Term Loan A $ 3,579 $ 3,834 Term Loan B 533 571 Term Loan C 4,916 — Property Loan 4,501 4,551 Amended Revolving Loan — 3,000 Total notes payable $ 13,529 $ 11,956

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Sep. 30, 2024
Leases
Schedule of maturities of lease liabilities	Schedule of maturities of lease liabilities Operating Lease Fiscal Year: 2025 $ 404 2026 551 2027 567 2028 143 Total lease payments 1,665 Less imputed interest (136 ) Total $ 1,529

NET SALES (Details)

NET SALES (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Net Sales:
Over-time revenue recognition	$ 47	$ 190
Point-in-time revenue recognition	14,845	11,748
Total net sales	$ 14,892	$ 11,938

NET SALES (Details 1)

NET SALES (Details 1) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Contract assets beginning balance	$ 262	$ 494
Expenses incurred during the year	57	219
Amounts reclassified to cost of sales	(102)	(105)
Amounts allocated to discounts for standalone selling price	(6)	(17)
Contract assets ending balance	211	591
Contract liabilities beginning balance	14
Payments received from customers		43
Amounts reclassified to revenue	(14)	(43)
Contract liabilities ending balance

NET SALES (Details Narrative)

NET SALES (Details Narrative) - USD ($)	Sep. 30, 2024	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Deferred revenue	$ 14,000	$ 0

COMPOSITION OF CERTAIN FINANC_3

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Marketable equity securities - short-term	$ 4,738	$ 4,217
Marketable equity securities - long-term	1,475	1,563
Total Investments	$ 6,213	$ 5,780

COMPOSITION OF CERTAIN FINANC_4

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Details 1) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Raw materials/purchased components	$ 7,438	$ 6,703
Work in process	5,728	5,103
Sub-assemblies/finished components	2,810	2,342
Finished goods	628	1,121
Total inventory	$ 16,604	$ 15,269

COMPOSITION OF CERTAIN FINANC_5

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Details 2) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Patent-related costs	$ 208	$ 208
Less accumulated amortization	(161)	(154)
Intangible assets, net	$ 47	$ 54

COMPOSITION OF CERTAIN FINANC_6

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Details Narrative) - USD ($)	3 Months Ended	12 Months Ended
	Sep. 30, 2024	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Available for sale securities aggregate cost	$ 4,000,000	$ 4,000,000
Investments included net unrealized gains (losses)	2,200,000	1,800,000
Gross unrealized gains	2,700,000	2,100,000
Gross unrealized losses	518,000	261,000
Marketable equity securities	748,000	$ 987,000
Future amortization expense, fiscal 2025	27,000
Future amortization expense, fiscal 2026	$ 20,000

WARRANTY (Details)

WARRANTY (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Guarantees and Product Warranties [Abstract]
Beginning balance	$ 277	$ 200
Accruals during the period	90	24
Changes in estimates of prior period warranty accruals	(18)	(2)
Warranty amortization/utilization	(49)	(33)
Ending balance	$ 300	$ 189

WARRANTY (Details Narrative)

WARRANTY (Details Narrative) - USD ($)	Sep. 30, 2024	Jun. 30, 2024
Guarantees and Product Warranties [Abstract]
Warranty reserve	$ 300,000	$ 277,000

NET INCOME (LOSS) PER SHARE (De

NET INCOME (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Basic:
Net income (loss)	$ 2,466	$ (615)
Weighted-average shares outstanding	3,260	3,547
Basic earnings (loss) per share	$ 0.76	$ (0.17)
Diluted:
Net income (loss)	$ 2,466	$ (615)
Weighted-average shares outstanding	3,260	3,547
Effect of dilutive securities	32
Weighted-average shares used in calculation of diluted earnings per share	3,292	3,547
Diluted earnings (loss) per share	$ 0.75	$ (0.17)

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Jun. 30, 2024
Cash paid during the period for income taxes:
Deferred tax asset is net of valuation allowance	$ 71,000		$ 71,000
Accrued interest related to unrecognized tax benefits	$ 6,000	$ 7,000
Income tax rates	26%	26%

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details Narrative) - USD ($)		1 Months Ended					3 Months Ended
	Jul. 02, 2024	Oct. 31, 2023	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2017	Sep. 30, 2014	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2016
Performance Shares [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of awards granted during period	40,000
Share-based compensation expense performance awards							$ 7,000	$ 15,000
Unrecognized compensation cost							$ 48,000
Weighted-average remaining contractual life							1 year 9 months
Number of shares issued	25,134
Payroll tax liabilities	$ 273,000
Previously Forfeited Awards [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of awards granted during period		15,200	17,500		48,000
Weighted average fair value		$ 10.04	$ 20.34		$ 16.90
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				$ 16.72
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
Equity Incentive Plan 2016 [Member] | Performance Shares [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of awards granted during period					200,000
Period for award description					completion of service periods that range from 7 months to 9.5 years at inception and the achievement of our common stock trading at certain pre-determined prices.
Weighted average fair value					$ 4.46
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
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 inception and the achievement of our common stock trading at certain pre-determined prices.
Share-based compensation expense performance awards							$ 104,000	168,000
Unrecognized compensation cost							1,500,000
Employee Stock Purchase Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-based compensation expense performance awards							$ 3,000	$ 6,000
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
Number of shares purchased and allocated to employee							940	2,021
Exercise price							$ 16.22	$ 15.82
Number of shares purchased total							36,442

MAJOR CUSTOMERS AND SUPPLIERS (

MAJOR CUSTOMERS AND SUPPLIERS (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Concentration Risk [Line Items]
Net sales	$ 14,892	$ 11,938
Sales [Member] | Customer Concentration Risk [Member] | Customer [Member]
Concentration Risk [Line Items]
Net sales	$ 14,892	$ 11,938
Percentage of concentrations risk	100%	100%
Sales [Member] | Customer Concentration Risk [Member] | Customer 1 [Member]
Concentration Risk [Line Items]
Net sales	$ 11,377	$ 8,375
Percentage of concentrations risk	76%	70%
Sales [Member] | Customer Concentration Risk [Member] | Customer 2 [Member]
Concentration Risk [Line Items]
Net sales	$ 1,837	$ 1,209
Percentage of concentrations risk	12%	10%
Sales [Member] | Customer Concentration Risk [Member] | Customer 3 [Member]
Concentration Risk [Line Items]
Net sales	$ 760	$ 1,165
Percentage of concentrations risk	5%	10%
Sales [Member] | Customer Concentration Risk [Member] | Total Customer [Member]
Concentration Risk [Line Items]
Net sales	$ 13,974	$ 10,749
Percentage of concentrations risk	93%	90%

MAJOR CUSTOMERS & SUPPLIERS (De

MAJOR CUSTOMERS & SUPPLIERS (Details 1) - Accounts Receivable [Member] - Customer Concentration Risk [Member] - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2024	Jun. 30, 2024
Customer [Member]
Concentration Risk [Line Items]
Total gross accounts receivable	$ 13,459	$ 13,887
Percentage of concentrations risk	100%	100%
Customer 1 [Member]
Concentration Risk [Line Items]
Total gross accounts receivable	$ 10,090	$ 10,488
Percentage of concentrations risk	75%	76%
Customer 2 [Member]
Concentration Risk [Line Items]
Total gross accounts receivable	$ 2,581	$ 2,423
Percentage of concentrations risk	19%	17%
Total Customer [Member]
Concentration Risk [Line Items]
Total gross accounts receivable	$ 12,671	$ 12,911
Percentage of concentrations risk	94%	93%

MAJOR CUSTOMERS & SUPPLIERS (_2

MAJOR CUSTOMERS & SUPPLIERS (Details Narrative) - Accounts Payable [Member] - Supplier Concentration Risk [Member] - USD ($)	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Jun. 30, 2024
Two Suppliers [Member]
Concentration Risk [Line Items]
Concentration risk percentage	10%	10%
Three Suppliers [Member]
Concentration Risk [Line Items]
Concentration risk percentage	10%	10%
Suppliers [Member]
Concentration Risk [Line Items]
Amounts owed	$ 1,700,000		$ 1,400,000
Suppliers 1 [Member]
Concentration Risk [Line Items]
Amounts owed	$ 248,000		$ 416,000

NOTES PAYABLE AND FINANCING T_3

NOTES PAYABLE AND FINANCING TRANSACTIONS (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Jun. 30, 2024
Short-Term Debt [Line Items]
Total notes payable	$ 13,529	$ 11,956
Term Loan A [Member]
Short-Term Debt [Line Items]
Total notes payable	3,579	3,834
Term Loan B [Member]
Short-Term Debt [Line Items]
Total notes payable	533	571
Term Loan C [Member]
Short-Term Debt [Line Items]
Total notes payable	4,916
Property Loan [Member]
Short-Term Debt [Line Items]
Total notes payable	4,501	4,551
Amended Revolving Loan [Member]
Short-Term Debt [Line Items]
Total notes payable		$ 3,000

NOTES PAYABLE AND FINANCING T_4

NOTES PAYABLE AND FINANCING TRANSACTIONS (Details Narrative) - Minnesota Bank And Trust [Member] - USD ($)	3 Months Ended
	Sep. 30, 2024	Jul. 31, 2024
Debt Instrument [Line Items]
Percentage of late payment fee	5%
Increased percentage of default late payment	3%
Term Loan A and B [Member]
Debt Instrument [Line Items]
Interest rate	3.84%
Maturity date	Nov. 01, 2027
Property Loan [Member]
Debt Instrument [Line Items]
Interest rate	3.55%
Maturity date	Nov. 01, 2030
Balloon payment	$ 3,100,000
Term Loan C [Member]
Debt Instrument [Line Items]
Interest rate	5%
Maturity date	Aug. 01, 2029
Amended Revolving Loan [Member]
Debt Instrument [Line Items]
Interest rate	5%
Maturity date	Dec. 29, 2025
Term Loan C [Member]
Debt Instrument [Line Items]
Loan amount		$ 5,000,000
Loan repaid amount		3,000,000
Loan origination fee		$ 10,000

COMMON STOCK (Details Narrative

COMMON STOCK (Details Narrative) - Tenb 51 Plan [Member] - Share Repurchase Program [Member] - USD ($) $ in Millions		3 Months Ended
	Dec. 31, 2019	Sep. 30, 2024
Share Repurchase Program [Line Items]
Number of shares repurchased, shares		91,976
Number of shares repurchased, value		$ 2.3
Cumulative Basis [Member]
Share Repurchase Program [Line Items]
Number of shares repurchased, shares	1,473,325
Number of shares repurchased, value	$ 23

LEASES (Details)

LEASES (Details) $ in Thousands	Sep. 30, 2024 USD ($)
Leases
2025	$ 404
2026	551
2027	567
2028	143
Total lease payments	1,665
Less imputed interest	(136)
Total	$ 1,529

LEASES (Details Narrative)

LEASES (Details Narrative)	3 Months Ended
	Sep. 30, 2024 USD ($)
Leases
Operating lease liability current portion	$ 466,000
Imputed interest rate, percentage	5.53%
Lease liability	$ 130,000
Maintenance charges	$ 41,000