Pro-Dex (PDEX) 10-Q 11 Feb 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2015	Feb. 03, 2016
Document And Entity Information
Entity Registrant Name	PRO DEX INC
Entity Central Index Key	788,920
Document Type	10-Q
Trading Symbol	PDEX
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		4,149,004
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Dec. 31, 2015	Jun. 30, 2015
Current Assets:
Cash and cash equivalents	$ 1,053	$ 697
Accounts receivable, net of allowance for doubtful accounts of $20 and $36, respectively	1,831	$ 2,326
Due from factor	912
Unbilled receivables	108	$ 853
Other current receivables	10	28
Inventory	4,481	4,310
Prepaid expenses	122	$ 124
Investment in Ramsey property and related notes receivable	1,461
Deferred income taxes	43	$ 70
Total current assets	10,021	8,408
Equipment and leasehold improvements, net	$ 1,225	1,470
Investment in Ramsey property and related notes receivable		1,652
Goodwill	$ 353	353
Intangibles	480	547
Other assets	88	86
Total assets	12,167	12,516
Current Liabilities:
Accounts payable	1,286	1,867
Accrued expenses	1,036	1,202
Deferred revenue	282	594
Notes payable	522	24
Capital lease obligations	1	7
Total current liabilities	3,127	3,694
Deferred income taxes	43	70
Deferred rent	173	204
Note payable, net of current portion	58	70
Total non-current liabilities	274	344
Total liabilities	3,401	4,038
Shareholders' equity:
Common shares; no par value; 50,000,000 shares authorized; 4,149,004 and 4,139,579 shares issued and outstanding at December 31, 2015 and June 30, 2015, respectively	18,434	18,411
Accumulated deficit	(9,668)	(9,933)
Total shareholders' equity	8,766	8,478
Total liabilities and shareholders' equity	$ 12,167	$ 12,516

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2015	Jun. 30, 2015
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 20	$ 36
Common shares, no par value (in dollars per share)
Common shares, shares authorized	50,000,000	50,000,000
Common shares, shares issued	4,149,004	4,139,579
Common shares, shares outstanding	4,149,004	4,139,579

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
Net sales	$ 5,439	$ 2,792	$ 9,535	$ 5,387
Cost of sales	3,900	2,096	6,938	3,863
Gross profit	1,539	696	2,597	1,524
Operating expenses:
Selling expenses	256	186	470	328
General and administrative expenses	452	459	986	950
Research and development costs	435	444	863	829
Total operating expenses	1,143	1,089	2,319	2,107
Operating income (loss)	396	(393)	278	(583)
Interest expense	(20)	(2)	$ (26)	(3)
Interest income	1	4		5
Gain from disposal of equipment	$ 14	1	$ 14	1
Realized gain on sale of investments		59		59
Income (loss) from continuing operations before income taxes	$ 391	(331)	$ 266	(521)
Income tax (expense) benefit		129	(1)	138
Income (loss) from continuing operations	$ 391	(202)	$ 265	(383)
Income from discontinued operations, net of income taxes		10		21
Net income (loss)	$ 391	(192)	$ 265	(362)
Other comprehensive income, net of tax:
Unrealized gain from marketable equity investments		162		173
Less: Reclassification of realized gains included in net loss		(59)		(59)
Comprehensive income (loss)	$ 391	$ (89)	$ 265	$ (248)
Basic and diluted net income (loss) per share:
Income (loss) from continuing operations (in dollars per share)	$ 0.09	$ (0.05)	$ 0.06	$ (0.09)
Income from discontinued operations (in dollars per share)
Net income (loss) (in dollars per share)	$ 0.09	$ (0.05)	$ 0.06	$ (0.09)
Weighted average common shares outstanding:
Basic (in shares)	4,143	4,170	4,142	4,190
Diluted (in shares)	4,165	4,170	4,161	4,190
Common shares outstanding (in shares)	4,149	4,170	4,149	4,170

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 265	$ (362)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	$ 334	259
Gain on sale of investments		(59)
Gain from disposal of equipment	$ (14)	(1)
Share-based compensation	$ 2	11
Deferred income tax benefit		(77)
Bad debt expense (recovery)	$ (16)	(3)
Changes in operating assets and liabilities:
Accounts receivable, due from factor and other current receivables	(383)	673
Unbilled receivables	745	(342)
Inventory	$ (171)	(275)
Prepaid expenses and other assets		(103)
Accounts payable, accrued expenses and deferred rent	$ (778)	326
Deferred revenue	$ (312)	269
Income taxes payable		(53)
Net cash provided by (used in) operating activities	$ (328)	263
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of investments		(12)
Purchases of equipment and leasehold improvements	$ (21)	(209)
Acquisition of Huber Precision		(209)
Purchase of Investment in Ramsey property and related notes receivable	$ (86)	$ (1,205)
Proceeds from liquidation of Ramsey assets	277
Proceeds from sale of equipment	$ 14	$ 1
Proceeds from sale of investments		318
Increase in intangibles	$ (1)	(61)
Net cash provided by (used in) investing activities	$ 183	(1,377)
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchase of common stock		$ (94)
Proceeds from Note Payable	$ 500
Proceeds from exercise of options and ESPP contributions	21
Borrowings from Summit Loan	1,600
Repayments on Summit Loan	$ (1,600)
Payments made for common stock rights offering		$ (3)
Principal payments on notes payable and capital lease	$ (20)	(4)
Net cash provided by (used in) financing activities	501	(101)
Net increase (decrease) in cash and cash equivalents	356	(1,215)
Cash and cash equivalents, beginning of period	697	3,188
Cash and cash equivalents, end of period	1,053	1,973
Cash paid during the period for:
Interest	21	3
Income taxes	$ 3	$ 8

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [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 (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Regulation S-K. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These financial statements should be read in conjunction with the consolidated financial statements presented in our Annual Report on Form 10-K for the fiscal year ended June 30, 2015. 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 consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended June 30, 2015. Recent Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers,” which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASU 2014-09 requires an entity to recognize revenue depicting the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires enhanced revenue related disclosures. In July 2015, the FASB deferred the effective date to fiscal years beginning after December 15, 2018 and early adoption of the standard is permitted, but not before the original effective date of December 15, 2017. This update permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect this guidance will have on the consolidated financial statements and related disclosures. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40). This guidance defines management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. Under the guidance, management is required to evaluate, for each annual and interim reporting period, whether it is probable that the entity will not be able to meet its obligations as they become due within one year after the date that the financial statements are issued or are available to be issued. When management identifies substantial doubt about the entity’s ability to continue as a going concern, additional disclosures are required. This guidance will be effective for annual reporting periods beginning after December 15, 2016. The Company is evaluating the effect this guidance will have on the consolidated financial statements and related disclosures. In February 2015, the FASB issued ASU 2015-02, Consolidation. This guidance amends existing consolidation guidance in which a reporting entity might be required to consolidate another legal entity in situations in which the reporting entity’s contractual rights do not give it the ability to act primarily on its own behalf, the reporting entity does not hold a majority of the legal entity’s voting rights, or the reporting entity is not exposed to a majority of the legal entity’s economic benefits or obligations. The guidance: • modifies the evaluations of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities; • eliminates the presumption that a general partner should consolidate a limited partner; • affects the consolidation analysis of reporting entities that are involved with variable interest entities, particularly those that have fee arrangements and related party relationships; and • provides a scope exception from consolidation guidance for reporting entities with interests in certain investment funds. The guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The Company does not expect the adoption of this guidance to have a material impact on the Company’s consolidated results of operations, financial position or cash flows. In April 2015, the FASB issued ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” to simplify the presentation of debt issuance costs. The amendments in this accounting standard update require debt issuance costs be presented on the balance sheet as a direct reduction from the carrying amount of the related debt liability. The amendments in this accounting standard update are to be applied retrospectively and are effective for interim and annual reporting periods beginning after December 15, 2015. We do not expect the adoption of this accounting standard update to have a material impact on our balance sheet.

BUSINESS ACQUISITIONS

BUSINESS ACQUISITIONS	6 Months Ended
	Dec. 31, 2015
Business Combinations [Abstract]
BUSINESS ACQUISITIONS	NOTE 2. BUSINESS ACQUISITIONS During the fiscal year ended June 30, 2015, we completed two acquisitions. On December 1, 2014, we completed the acquisition of Huber Precision (“Huber”), a manufacturer of machined parts, primarily for the oil and electronics industry. The aggregate purchase price paid was $209,000. On February 1, 2015, we completed the acquisition of Fineline Molds (“Fineline”), a manufacturer of plastic injection molds for a variety of industries. The aggregate purchase price was $757,000, of which $657,000 was paid in cash at closing and $100,000 of which is to be paid by the Company under the terms of a four-year promissory note issued to Fineline at closing. The note bears interest at 4% per annum and requires sixteen equal quarterly payments of principal and accrued interest in the amount of $6,794. The note is secured by all of the assets acquired by us from Fineline and is subordinate to the security interest created by the Summit Financial Resources LP Loan and Security Agreement (see notes 4 and 8). The following summarizes the consideration paid and the estimated fair values of the assets acquired for each acquisition as of the respective acquisition date (in thousands): Huber Purchase Price Allocation Fineline Purchase Price Allocation Consideration: Cash $ 209 $ 657 Promissory note payable to seller — 100 Total consideration $ 209 $ 757 Fair value of assets acquired: Inventory $ 5 $ — Fixed assets 37 149 Covenant not to compete 30 22 Trade name — 54 Customer list and backlog 137 179 Net assets acquired $ 209 $ 404 Goodwill $ — $ 353 The acquisitions were completed to support expansion of the business and broaden the Company’s customer base. We have accounted for these acquisitions as business combinations using the acquisition method of accounting. This method requires, among other things, that assets acquired and liabilities assumed in a business combination be recognized at their fair values as of the acquisition date. There were no liabilities assumed as part of either the Huber or Fineline acquisitions. The results of operations related to the businesses acquired have been included in the Company’s consolidated statements of operations since the date of each respective acquisition. Pro forma historical results of operations related to both acquisitions during the period prior to the acquisition date have not been presented because they are not material to our consolidated statements of operations and comprehensive income (loss). The fair value determination of assets recorded are those of management. The fair value determination of the customer list and backlog was based on the excess of earnings method which is based on the prospective net cash flows of the existing customers. The fair value determination of the trade name was based upon a relief from royalty approach which assesses the royalty savings an entity realizes since it owns the asset and isn’t required to pay a third party license for its use. The fair value determination of the covenants not to compete was based upon a discounted cash flow model.

COMPOSITION OF CERTAIN FINANCIA

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS	6 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS	NOTE 3. COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS Inventory Inventory is stated at the lower of cost (first-in, first-out) or market and consists of the following (in thousands): December 31, June 30, Raw materials /purchased components $ 2,112 $ 2,025 Work in process 924 1,030 Sub-assemblies /finished components 1,189 1,095 Finished goods 256 160 Total inventory $ 4,481 $ 4,310 Intangibles Intangibles consist of the following (in thousands): December 31, June 30, Capitalized software development costs $ 73 $ 73 Covenant not to compete 52 52 Trade name 54 54 Customer list and backlog 316 316 Patent-related costs 97 96 Total intangibles $ 592 $ 591 Less accumulated amortization (112 ) (44 ) $ 480 $ 547 Capitalized software development costs relate to internally developed software, which are being amortized over the estimated minimum unit sales of the underlying product which was released for sale during the fourth quarter of fiscal 2015. Both the covenant not to compete and the customer list and backlog relate to assets acquired in conjunction with the business acquisitions more fully described in Note 2 above and are being amortized over various periods not to exceed ten years. The trade name relates exclusively to Fineline Molds and has an indefinite life, subject to impairment loss assessment annually, or more frequently if certain conditions exist. Patent-related costs consist of legal fees incurred in connection with patent applications, and will be amortized over the life of the applicable patent upon its issuance, or expensed immediately in the event the patent office denies the issuance of the patent.

DUE FROM FACTOR

DUE FROM FACTOR	6 Months Ended
	Dec. 31, 2015
Due From Factor
DUE FROM FACTOR	NOTE 4. DUE FROM FACTOR On September 9, 2015, we entered a Loan and Security Agreement (the “Summit Loan”) with Summit Financial Resources LP, (the “Factor”) whereby we can borrow up to $1.0 million against our eligible receivables, as defined in the agreement. Borrowed funds will bear interest at a rate of prime plus 2 percent, and incur an additional administrative fee of 0.7 percent on the monthly average outstanding balance. The Summit Loan has an initial period of 18 months with successive one year renewal options and requires an annual facility fee of $10,000. As of December 31, 2015, the total amount of receivables that have been assigned to the Factor pursuant to the Summit Loan is $912,000 and we bear the risk of loss in the event of non-payment by the customers. During the three and six months ended December 31, 2015, we borrowed $1.3 million and $1.6 million, respectively, under the Summit Loan, which amounts were paid in full by December 31, 2015. Therefore, at December 31, 2015, we had no outstanding borrowings against the Summit Loan.

WARRANTY

WARRANTY	6 Months Ended
	Dec. 31, 2015
Product Warranties Disclosures [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 consolidated balance sheets. As of December 31, 2015 and June 30, 2015, the warranty reserve amounted to $367,000 and $261,000, respectively. Warranty expenses are included in cost of sales in the accompanying consolidated statements of operations. Changes in estimates to previously established warranty accruals result from current period updates to assumptions regarding repair costs and warranty return rates, and are included in current period warranty expense. Warranty expense relating to new product sales and changes to estimates for the three months ended December 31, 2015 and 2014 was $73,000 and $155,000, respectively, and for the six months ended December 31, 2015 and 2014 was $178,000 and $150,000, respectively. Information regarding the accrual for warranty costs for the three and six months ended December 31, 2015 and 2014 are as follows (in thousands): As of and for the 2015 2014 Beginning balance $ 312 $ 213 Accruals during the period 56 79 Changes in estimates of prior period warranty accruals 17 76 Warranty amortization (18 ) (36 ) Ending balance $ 367 $ 332 As of and for the 2015 2014 Beginning balance $ 261 $ 237 Accruals during the period 151 150 Changes in estimates of prior period warranty accruals 27 — Warranty amortization (72 ) (55 ) Ending balance $ 367 $ 332

NET INCOME (LOSS) PER SHARE

NET INCOME (LOSS) PER SHARE	6 Months Ended
	Dec. 31, 2015
Earnings Per Share [Abstract]
NET INCOME (LOSS) PER SHARE	NOTE 6. NET INCOME (LOSS) PER SHARE The Company calculates basic net income (loss) per share by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period. The weighted-average number of common shares outstanding reflects the effects of potentially dilutive securities, in income generating periods, which consist entirely of outstanding stock options. Potential common shares of 27,683 have been excluded from diluted weighted average common shares for the three months ended December 31, 2014, as the effect would have been anti-dilutive. Similarly, potential common shares of 23,399 have been excluded from diluted weighted average common shares for the six months ended December 31, 2014, as the effect would have been anti-dilutive. The following table presents reconciliations of the numerators and denominators of the basic and diluted earnings (loss) per share computations for net income (loss). In the tables below, income (loss) amounts represent the numerator, and share amounts represent the denominator (in thousands, except per share amounts): Three Months Ended Six Months Ended 2015 2014 2015 2014 Basic: Income (loss) from continuing operations $ 391 $ (202 ) $ 265 $ (383 ) Weighted average shares outstanding 4,143 4,170 4,142 4,190 Basic income (loss) per share from continuing operations $ 0.09 $ (0.05 ) $ 0.06 $ (0.09 ) Income from discontinued operations $ — $ 10 $ — $ 21 Weighted average shares outstanding 4,143 4,170 4,142 4,190 Basic and diluted earnings per share from discontinued operations $ 0.00 $ 0.00 $ 0.00 $ 0.00 Net income (loss) $ 391 $ (192 ) $ 265 $ (362 ) Weighted average shares outstanding 4,143 4,170 4,142 4,190 Basic income (loss) per share $ 0.09 $ (0.05 ) $ 0.06 $ (0.09 ) Three Months Ended Six Months Ended 2015 2014 2015 2014 Diluted: Income (loss) from continuing operations $ 391 $ (202 ) $ 265 $ (383 ) Weighted average shares outstanding 4,143 4,170 4,142 4,190 Effect of dilutive securities – stock options 22 — 19 — Weighted average shares used in calculation of diluted earnings per share 4,165 4,170 4,161 4,190 Basic and diluted loss per share from continuing operations $ 0.09 $ (0.05 ) $ 0.06 $ (0.09 ) Income from discontinued operations $ — $ 10 $ — $ 21 Weighted average shares outstanding 4,165 4,170 4,161 4,190 Diluted earnings per share from discontinued operations $ 0.00 $ 0.00 $ 0.00 $ 0.00 Net income (loss) $ 391 $ (192 ) $ 265 $ (362 ) Weighted average shares outstanding 4,165 4,170 4,161 4,190 Diluted income (loss) per share $ 0.09 $ (0.05 ) $ 0.06 $ (0.09 )

INVESTMENT IN RAMSEY PROPERTY A

INVESTMENT IN RAMSEY PROPERTY AND RELATED NOTES RECEIVABLE AND VARIABLE INTEREST ENTITY CONSIDERATIONS	6 Months Ended
	Dec. 31, 2015
Receivables [Abstract]
INVESTMENT IN RAMSEY PROPERTY AND RELATED NOTES RECEIVABLE AND VARIABLE INTEREST ENTITY CONSIDERATIONS	NOTE 7. INVESTMENT IN RAMSEY PROPERTY AND RELATED NOTES RECEIVABLE AND VARIABLE INTEREST ENTITY CONSIDERATIONS In November 2014, the Company purchased two promissory notes through a Loan Purchase and Sale Agreement in the amount of $1.2 million. The promissory notes were cross-collateralized and originally secured by (collectively, the “Collateral”), among other things, real property consisting of 2.3 acres of land and an approximate 30,000 square foot industrial building and a security interest in substantially all of the assets of Riverside Manufacturing, Inc. (“Riverside”) (consisting primarily of machine shop equipment and accounts receivable). The notes were recorded at their purchase price and since the notes remained in default, they were placed on nonaccrual status, and therefore, the Company has not collected or recognized any interest income since the date of purchase. Additionally, due to uncertainties relating to future cash flows projected to be received on the notes, no accretable yield was recorded. During the third quarter of fiscal 2015, we entered into forbearance agreements with Riverside whereby we agreed to forbear from enforcing our rights under the promissory notes until July 31, 2015. Additionally, we entered into a revolving loan agreement, whereby we agreed to advance Riverside from time-to-time up to an aggregate amount of $200,000 at any time prior to July 31, 2015. During the fourth quarter of fiscal 2015, we amended the revolving loan agreement to provide for advances to Riverside of up to an aggregate amount of $300,000 under a Revolving Loan Modification Agreement. Additionally, during the fourth quarter of fiscal 2015, as disclosed in a Form 8-K filed with the SEC on May 13, 2015, we entered a settlement agreement such that we received the deed to the land and building located in Ramsey, Minnesota (the “Ramsey Property”) which had previously been held as security for notes receivable. The notes are considered impaired because we do not believe the contractual payments will be collected pursuant to contract terms. Accordingly, the recorded investment is reflected at the lesser of the purchase price or the estimated fair value of the collateral (with appropriate reductions for estimated disposal costs). On September 22, 2015 we sent Riverside a proposal to accept the collateral in full satisfaction of Riverside’s debt. On October 13, 2015, title to the collateral transferred to the Company by operation of law. Therefore, on October 13, 2015, we took possession of all assets secured by the revolving loan agreement and promissory notes and Riverside ceased to operate. Since that time we entered into a contract to sell the real property and are in the process of selling all of the machinery and equipment through an equipment broker. Based upon these events we no longer believe that the investments in Riverside create a variable interest entity (“VIE”), especially as Riverside has ceased operations effective October 13, 2015. As of December 31, 2015, we have classified the Investment in Ramsey property and related notes receivable to current assets based upon the events described above. During the three months ended December 31, 2015 we have collected $277,000 from selling inventory and equipment and collecting outstanding receivables, all of which served as collateral for Riverside’s debt.

NOTES PAYABLE AND FINANCING TRA

NOTES PAYABLE AND FINANCING TRANSACTIONS	6 Months Ended
	Dec. 31, 2015
Notes Payable [Abstract]
NOTES PAYABLE AND FINANCING TRANSACTIONS	NOTE 8. NOTES PAYABLE AND FINANCING TRANSACTIONS Fortitude Income Funds The Company borrowed $500,000 from Fortitude Income Funds, LLC under a promissory note dated September 8, 2015. The loan bears interest at 12 percent per annum, contains a loan origination fee of $15,000 plus expenses, and requires monthly interest only payments until its maturity on March 15, 2016. The loan contains two three-month options to extend the principal re-payment, each requiring an up-front payment of $3,750. The loan is secured by a combination mortgage, security agreement and fixture statement covering the Ramsey Property. Summit Financial Resources LP Additionally, as discussed in Note 4, on September 9, 2015 we entered into the Summit Loan, whereby we can borrow up to $1.0 million against our eligible receivables, as defined in the agreement. Borrowed funds will bear interest at a rate of prime plus 2 percent, and incur an additional administrative fee of 0.7 percent on the monthly average outstanding balance. The Summit Loan has an initial period of 18 months with successive one year renewal options and requires an annual facility fee of $10,000. During the three and six months ended December 31, 2015 we borrowed $1.3 million and $1.6 million, respectively, under the Summit Loan, which amounts were paid in full by December 31, 2015. Fineline Molds As discussed in Note 2, in conjunction with our acquisition of the assets of Fineline we issued a promissory note to Fineline in the amount of $100,000 which bears interest at 4% per annum and requires sixteen equal quarterly payments of principal and accrued interest in the amount of $6,794. The note is secured by all of the assets acquired by us from Fineline and is subordinate to the security interest created by the Summit Loan. The balance owed on the note as of December 31, 2015 and June 30, 2015 is approximately $82,000 and $94,000 respectively.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 9. 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 bases. 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 or loss, with some consideration given to our estimates of future taxable income or loss by jurisdictions in which we operate and the period over which our deferred tax assets would be recoverable. Due to cumulative taxable losses during the past three years, we maintained a valuation allowance of $3.9 million against our deferred tax assets as of December 31, 2015. As of December 31, 2015, we have accrued $434,000 of unrecognized tax benefits related to federal and state income tax matters. None of this balance is expected to reduce the Company’s income tax expense if recognized. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Balance at July 1, 2015 $ 399 Additions based on tax positions related to the current year 27 Additions for tax positions of prior years 8 Balance at December 31, 2015 $ 434 We recognize accrued interest and penalties related to unrecognized tax benefits when applicable. As of December 31, 2015, no interest or penalties applicable to our unrecognized tax benefits have been accrued since we have sufficient tax attributes available to fully offset any potential assessment of additional tax. Pro-Dex and its subsidiaries 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, 2012 and later. Our state income tax returns are open to audit under the statute of limitations for the years ended June 30, 2011 and later. 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	6 Months Ended
	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
SHARE-BASED COMPENSATION	NOTE 10. SHARE-BASED COMPENSATION As discussed further below, until June 2014 we had two equity compensation plans, the Second Amended and Restated 2004 Stock Option Plan (the “Employee Stock Option Plan”) and the Amended and Restated 2004 Directors’ Stock Option Plan (the “Directors’ Stock Option Plan”) (collectively, the “Stock Option Plans”), pursuant to which (i) options to purchase shares of common stock, or (ii) restricted shares of common stock, could be granted up to an aggregate amount of 1,333,333 common shares, with 1,066,667 and 266,666 shares distributed between the Employee Stock Option Plan and the Directors’ Stock Option Plan, respectively. The Stock Option Plans were substantially similar, providing for a strike price equal to the closing price for a share of our common stock as of the last business day immediately prior to the grant date, vesting periods as determined by the Board for the Employee Stock Option Plan and six months for the Directors’ Stock Option Plan, and terms of up to ten years, subject to forfeit 30 days after the holder ceases to be an employee or 90 days after the holder ceases to be a director, as the case may be. Share-based compensation expense under the Stock Option Plans for the three months ended December 31, 2015 and 2014 was $0 and $4,000, respectively, and for the six months ended December 31, 2015 and 2014 was $2,000 and $11,000, respectively. In June 2014, our Board of Directors terminated the Employee Stock Option Plan, with the provision that options outstanding under the Employee Stock Option Plan will remain outstanding in accordance with their respective terms. At the date of termination, 531,381 shares were reserved for issuance under the Employee Stock Option Plan in excess of shares issuable pursuant to outstanding options, all of which shares will be available for issuance under the provisions of the Employee Stock Purchase Plan described below. In September 2014, our Board approved the inclusion in our proxy statement for approval by our shareholders at the 2014 Annual Meeting of Shareholders its recommendation to terminate the Directors’ Stock Option Plan, which proposal was approved by our shareholders at the December 3, 2014 Annual Meeting. At September 30, 2014, 173,334 shares were reserved for issuance under the Directors’ Stock Option Plan, all of which will be available for issuance under the provisions of the Employee Stock Purchase Plan described below. Stock Options No options were granted during the three or six months ended December 31, 2015 and 2014. As of December 31, 2015, there was no unrecognized compensation cost under the Stock Option Plans as all outstanding stock options are fully vested. Following is a summary of stock option activity for the six months ended December 31, 2015 and 2014: 2015 2014 Number of Weighted- Number of Weighted- Outstanding at July 1, 106,668 $ 2.41 165,002 $ 2.40 Options granted — — — — Options exercised (7,500 ) 2.14 — — Options forfeited — — (8,334 ) 5.58 Outstanding at end of period 99,168 $ 2.43 156,668 $ 2.23 Stock Options Exercisable at December 31, 99,168 $ 2.43 150,001 $ 2.26 Following is a summary of information regarding options outstanding and options exercisable at December 31, 2015: Options Outstanding & Exercisable Range of Number Weighted-Avg. Weighted-Avg. Aggregate. $0 to 2.50 87,500 5.78 $ 1.86 $ 49,350 2.5 to 5.00 3,334 1.38 4.38 — 7.51 to 10.00 8,334 0.02 7.65 — Total 99,168 5.15 years $ 2.43 $ 49,350 Employee Stock Purchase Plan Also 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. The Board of Directors also approved the provision that shares formerly reserved for issuance under the Employee Stock Option Plan and the Directors’ Stock Option Plan in excess of shares issuable pursuant to outstanding options, aggregating 704,715 shares, be reserved for issuance pursuant to the ESPP. During the first quarter ended September 30, 2015, 1,925 shares were purchased and allocated to employees based upon their contributions at a price of $2.34 per share. There were no share purchases during the second quarter ended December 31, 2015. The next six month offering period is scheduled to occur in the third quarter of fiscal 2016. Restricted Stock The following is a summary of restricted share activity for the six months ended December 31, 2015 and 2014: 2015 2014 Number of Weighted- Number of Weighted- Outstanding at beginning of period 5,000 $ 1.73 13,333 $ 1.73 Granted — — — — Vested (5,000 ) 1.73 (6,667 ) 1.73 Forfeited — — — — Outstanding at end of period — $ — 6,666 $ 1.73

MAJOR CUSTOMERS AND SUPPLIERS

MAJOR CUSTOMERS AND SUPPLIERS	6 Months Ended
	Dec. 31, 2015
Risks and Uncertainties [Abstract]
MAJOR CUSTOMERS AND SUPPLIERS	NOTE 11. MAJOR CUSTOMERS AND SUPPLIERS Information with respect to customers that accounted for sales in excess of 10% of our total sales in either of the three-month and the six-month periods ended December 31, 2015 and 2014, is as follows (in thousands, except percentages): Three Months Ended December 31, 2015 2014 Amount Percent of Amount Percent of Total revenue $ 5,439 100 % $ 2,792 100 % Customer concentration: Customer 1 $ 1,311 24 % $ 11 — Customer 2 1,213 22 % 5 — Customer 3 1,169 22 % 1,691 61 % Total $ 3,693 68 % $ 1,707 61 % Six Months Ended December 31, 2015 2014 Amount Percent of Amount Percent of Total revenue $ 9,535 100 % $ 5,387 100 % Customer concentration: Customer 1 2,421 25 % 25 — Customer 3 1,795 19 % 3,198 59 % Customer 2 1,229 13 % 5 — Customer 4 1,004 11 % 271 5 % Total $ 6,449 68 % $ 3,499 65 % Information with respect to accounts receivable from those customers whom comprised more than 10 % of our gross accounts receivable at either December 31, 2015 or June 30, 2015, is as follows (in thousands, except percentages): December 31, 2015 June 30, 2015 Total gross accounts receivable, including amounts due from factor $ 2,763 100 % $ 2,362 100 % Customer concentration: Customer 1 $ 485 18 % $ 78 3 % Customer 2 754 27 % — — Customer 3 634 23 % 711 30 % Customer 4 314 11 % 303 13 % Customer 5 98 4 % 531 22 % Total $ 2,285 83 % $ 1,623 68 % Information with respect to suppliers that accounted for purchases in excess of 10% of our total purchases in either of the three-month and the six-month periods ended December 31, 2015 and 2014, is as follows (in thousands, except percentages): Three Months Ended December 31, 2015 2014 Amount Percent of Amount Percent of Total purchases $ 2,713 100 % $ 2,235 100 % Supplier concentration: Supplier 1 $ 240 9 % $ 436 20 % Supplier 2 51 2 % 224 10 % Total $ 291 11 % $ 660 30 % Six Months Ended December 31, 2015 2014 Amount Percent of Amount Percent of Total purchases $ 5,380 100 % $ 4,052 100 % Supplier concentration: Supplier 1 $ 693 13 % $ 658 16 % Supplier 2 218 4 % 394 10 % Total $ 911 17 % $ 1,052 26 % Accounts payable due to the current-year significant supplier represented 2% and 36% of total accounts payable as of December 31, 2015 and June 30, 2015, respectively.

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Dec. 31, 2015
Segment Reporting [Abstract]
SEGMENT INFORMATION	NOTE 12. SEGMENT INFORMATION In fiscal 2016, the Company has four reportable segments based on its business activities and organization: • Pro-Dex located in Irvine, California – providing primarily medical and dental instruments using shared production and assembly machines and workforce. This segment also incorporates Huber Precision as the revenues and assets of Huber Precision are not material to the Company’s total revenues and assets. Additionally, effective November 30, 2015 the former San Carlos office of Huber Precision was closed and all orders shipped since that date are manufactured at the Irvine facility. • OMS located in Beaverton, Oregon – providing multi-axis motion control applications. • Fineline located in San Dimas, California. This business was purchased on February 1, 2015 and is a manufacturer of plastic injection molds for a variety of industries. • Engineering Services Division or (“ESD”). This division was launched in fiscal 2015 to provide permanent placement and contract services in the fields of engineering, manufacturing and quality to diverse businesses. In deciding how to allocate resources and assess performance, the Company’s chief executive officer regularly evaluates the sales and operating income of these segments. Operating income is the gross margin of the segment less direct expenses of the segment. Unallocated corporate expenses include our corporate administrative cost center, which primarily includes costs associated with being a public company, as well as general and administrative expenses (“G&A”) incurred related to our investment in the Ramsey property and related notes receivable and is a subset of total general and administrative expenses. Additionally, other costs incurred in our G&A, including salaries and other personnel-related expenses for corporate, accounting, finance and human resource personnel, as well as costs for outsourced information technology services, are not allocated by segment internally and are included in Pro-Dex in the tables below. The following tables summarize segment performance for the three and six months ended December 31, 2015 and 2014 (in thousands): Pro-Dex OMS Fineline ESD Corporate Unallocated Total Three months ended December 31, 2015 Net Sales $ 4,909 $ 208 $ 223 $ 99 $ — $ 5,439 Gross Profit 1,396 90 3 50 — 1,539 Operating Income (loss) 792 (114 ) (51 ) (40 ) (191 ) 396 Depreciation and amortization expense 145 3 18 — — 166 Pro-Dex OMS Fineline ESD Corporate Unallocated Total Three months ended December 31, 2014 Net Sales $ 2,428 $ 359 $ — $ 5 $ — $ 2,792 Gross Profit 449 245 — 2 — 696 Operating Income (loss) (193 ) 48 — (79 ) (169 ) (393 ) Depreciation and amortization expense 129 3 — — — 132 Pro-Dex OMS Fineline ESD Corporate Unallocated Total Six months ended December 31, 2015 Net Sales $ 8,329 $ 512 $ 486 $ 208 $ — $ 9,535 Gross Profit 2,206 244 29 118 — 2,597 Operating Income (loss) 1,011 (167 ) (79 ) (64 ) (423 ) 278 Depreciation and amortization expense 293 5 36 — — 334 Pro-Dex OMS Fineline ESD Corporate Unallocated Total Six months ended December 31, 2014 Net Sales $ 4,660 $ 722 $ — $ 5 $ — $ 5,387 Gross Profit 1,017 505 — 2 — 1,524 Operating Income (loss) (275 ) 134 — (79 ) (363 ) (583 ) Depreciation and amortization expense 254 5 — — — 259

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 13. COMMITMENTS AND CONTINGENCIES Legal Matters In general, we are from time to time a party to various legal proceedings incidental to our business, none of which we currently consider may be material. There can be no certainty, however, that we may not ultimately incur liability or that such liability will not be material and adverse.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	NOTE 14. FAIR VALUE MEASUREMENTS Fair value is measured based on the prices that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are based on a three-tier hierarchy that prioritizes the inputs used to measure fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions. Cash and cash equivalents: The carrying value of cash and cash equivalents is considered to be representative of their fair values based on the short term nature of these instruments. As such, cash and cash equivalents are classified within Level 1 of the valuation hierarchy. Investment in Ramsey property and related notes receivable: These investments are classified within Level 3 of the valuation hierarchy for purposes of evaluating potential impairment of these assets. The fair value of the property and related notes receivable is based upon the valuation of third party appraisals of the land and building as well as the equipment which is security for the notes less estimates of liquidation costs and has been reduced by proceeds collected to date. Although the methods above may produce a fair value calculation that may not be indicative of the net realizable value or reflective of future fair values, we believe the valuation methods are appropriate.

SUBSEQUENT EVENT

SUBSEQUENT EVENT	6 Months Ended
	Dec. 31, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENT	NOTE 15. SUBSEQUENT EVENT On January 6, 2016, the Company entered into a Receipt for Earnest Money Deposit and Real Estate Purchase Contract, as modified by an Addendum to Real Estate Purchase Contract (collectively, the “Purchase Contract”), to sell approximately 2.2 acres of land and an approximately 30,000 square foot building thereon located in the City of Ramsey and included in Investment in Ramsey property and related notes receivable in our condensed consolidated balance sheet, as of December 31, 2015, for an amount of $1,653,000. The Purchase Contract, as reported in the Company’s Current Report on Form 8-K filed with the SEC on January 8, 2016, provides the Purchaser up to 45 days to perform its due diligence. In addition to legal fees and other transaction costs, the Company is obligated to pay broker commissions of $99,180 (6% of the purchase price) at closing.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	6 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recent Accounting Standards	Recent Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers,” which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASU 2014-09 requires an entity to recognize revenue depicting the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires enhanced revenue related disclosures. In July 2015, the FASB deferred the effective date to fiscal years beginning after December 15, 2018 and early adoption of the standard is permitted, but not before the original effective date of December 15, 2017. This update permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect this guidance will have on the consolidated financial statements and related disclosures. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40). This guidance defines management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. Under the guidance, management is required to evaluate, for each annual and interim reporting period, whether it is probable that the entity will not be able to meet its obligations as they become due within one year after the date that the financial statements are issued or are available to be issued. When management identifies substantial doubt about the entity’s ability to continue as a going concern, additional disclosures are required. This guidance will be effective for annual reporting periods beginning after December 15, 2016. The Company is evaluating the effect this guidance will have on the consolidated financial statements and related disclosures. In February 2015, the FASB issued ASU 2015-02, Consolidation. This guidance amends existing consolidation guidance in which a reporting entity might be required to consolidate another legal entity in situations in which the reporting entity’s contractual rights do not give it the ability to act primarily on its own behalf, the reporting entity does not hold a majority of the legal entity’s voting rights, or the reporting entity is not exposed to a majority of the legal entity’s economic benefits or obligations. The guidance: • modifies the evaluations of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities; • eliminates the presumption that a general partner should consolidate a limited partner; • affects the consolidation analysis of reporting entities that are involved with variable interest entities, particularly those that have fee arrangements and related party relationships; and • provides a scope exception from consolidation guidance for reporting entities with interests in certain investment funds. The guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The Company does not expect the adoption of this guidance to have a material impact on the Company’s consolidated results of operations, financial position or cash flows. In April 2015, the FASB issued ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs” to simplify the presentation of debt issuance costs. The amendments in this accounting standard update require debt issuance costs be presented on the balance sheet as a direct reduction from the carrying amount of the related debt liability. The amendments in this accounting standard update are to be applied retrospectively and are effective for interim and annual reporting periods beginning after December 15, 2015. We do not expect the adoption of this accounting standard update to have a material impact on our balance sheet.

BUSINESS ACQUISITIONS (Tables)

BUSINESS ACQUISITIONS (Tables)	6 Months Ended
	Dec. 31, 2015
Business Combinations [Abstract]
Schedule of consideration paid and the estimated fair values of the assets acquired	The following summarizes the consideration paid and the estimated fair values of the assets acquired for each acquisition as of the respective acquisition date (in thousands): Huber Purchase Price Allocation Fineline Purchase Price Allocation Consideration: Cash $ 209 $ 657 Promissory note payable to seller — 100 Total consideration $ 209 $ 757 Fair value of assets acquired: Inventory $ 5 $ — Fixed assets 37 149 Covenant not to compete 30 22 Trade name — 54 Customer list and backlog 137 179 Net assets acquired $ 209 $ 404 Goodwill $ — $ 353

COMPOSITION OF CERTAIN FINANC23

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Tables)	6 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of inventory is stated at the lower of cost (first-in, first-out) or market	Inventory is stated at the lower of cost (first-in, first-out) or market and consists of the following (in thousands): December 31, June 30, Raw materials /purchased components $ 2,112 $ 2,025 Work in process 924 1,030 Sub-assemblies /finished components 1,189 1,095 Finished goods 256 160 Total inventory $ 4,481 $ 4,310
Schedule of intangibles	Intangibles consist of the following (in thousands): December 31, June 30, Capitalized software development costs $ 73 $ 73 Covenant not to compete 52 52 Trade name 54 54 Customer list and backlog 316 316 Patent-related costs 97 96 Total intangibles $ 592 $ 591 Less accumulated amortization (112 ) (44 ) $ 480 $ 547

WARRANTY (Tables)

WARRANTY (Tables)	6 Months Ended
	Dec. 31, 2015
Product Warranties Disclosures [Abstract]
Schedule of accrual warranty costs	Information regarding the accrual for warranty costs for the three and six months ended December 31, 2015 and 2014 are as follows (in thousands): As of and for the 2015 2014 Beginning balance $ 312 $ 213 Accruals during the period 56 79 Changes in estimates of prior period warranty accruals 17 76 Warranty amortization (18 ) (36 ) Ending balance $ 367 $ 332 As of and for the 2015 2014 Beginning balance $ 261 $ 237 Accruals during the period 151 150 Changes in estimates of prior period warranty accruals 27 — Warranty amortization (72 ) (55 ) Ending balance $ 367 $ 332

NET INCOME (LOSS) PER SHARE (Ta

NET INCOME (LOSS) PER SHARE (Tables)	6 Months Ended
	Dec. 31, 2015
Earnings Per Share [Abstract]
Schedule of reconciliations of the numerators and denominators of the basic and diluted earnings (loss) per share computations for net income (loss)	The following table presents reconciliations of the numerators and denominators of the basic and diluted earnings (loss) per share computations for net income (loss). In the tables below, income (loss) amounts represent the numerator, and share amounts represent the denominator (in thousands, except per share amounts): Three Months Ended Six Months Ended 2015 2014 2015 2014 Basic: Income (loss) from continuing operations $ 391 $ (202 ) $ 265 $ (383 ) Weighted average shares outstanding 4,143 4,170 4,142 4,190 Basic income (loss) per share from continuing operations $ 0.09 $ (0.05 ) $ 0.06 $ (0.09 ) Income from discontinued operations $ — $ 10 $ — $ 21 Weighted average shares outstanding 4,143 4,170 4,142 4,190 Basic and diluted earnings per share from discontinued operations $ 0.00 $ 0.00 $ 0.00 $ 0.00 Net income (loss) $ 391 $ (192 ) $ 265 $ (362 ) Weighted average shares outstanding 4,143 4,170 4,142 4,190 Basic income (loss) per share $ 0.09 $ (0.05 ) $ 0.06 $ (0.09 ) Three Months Ended Six Months Ended 2015 2014 2015 2014 Diluted: Income (loss) from continuing operations $ 391 $ (202 ) $ 265 $ (383 ) Weighted average shares outstanding 4,143 4,170 4,142 4,190 Effect of dilutive securities – stock options 22 — 19 — Weighted average shares used in calculation of diluted earnings per share 4,165 4,170 4,161 4,190 Basic and diluted loss per share from continuing operations $ 0.09 $ (0.05 ) $ 0.06 $ (0.09 ) Income from discontinued operations $ — $ 10 $ — $ 21 Weighted average shares outstanding 4,165 4,170 4,161 4,190 Diluted earnings per share from discontinued operations $ 0.00 $ 0.00 $ 0.00 $ 0.00 Net income (loss) $ 391 $ (192 ) $ 265 $ (362 ) Weighted average shares outstanding 4,165 4,170 4,161 4,190 Diluted income (loss) per share $ 0.09 $ (0.05 ) $ 0.06 $ (0.09 )

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Schedule of unrecognized tax benefits	A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Balance at July 1, 2015 $ 399 Additions based on tax positions related to the current year 27 Additions for tax positions of prior years 8 Balance at December 31, 2015 $ 434

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	6 Months Ended
	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of stock option activity	Following is a summary of stock option activity for the six months ended December 31, 2015 and 2014: 2015 2014 Number of Weighted- Number of Weighted- Outstanding at July 1, 106,668 $ 2.41 165,002 $ 2.40 Options granted — — — — Options exercised (7,500 ) 2.14 — — Options forfeited — — (8,334 ) 5.58 Outstanding at end of period 99,168 $ 2.43 156,668 $ 2.23 Stock Options Exercisable at December 31, 99,168 $ 2.43 150,001 $ 2.26
Schedule of options outstanding and options exercisable	Following is a summary of information regarding options outstanding and options exercisable at December 31, 2015: Options Outstanding & Exercisable Range of Number Weighted-Avg. Weighted-Avg. Aggregate. $0 to 2.50 87,500 5.78 $ 1.86 $ 49,350 2.5 to 5.00 3,334 1.38 4.38 — 7.51 to 10.00 8,334 0.02 7.65 — Total 99,168 5.15 years $ 2.43 $ 49,350
Schedule of restricted share activity	The following is a summary of restricted share activity for the six months ended December 31, 2015 and 2014: 2015 2014 Number of Weighted- Number of Weighted- Outstanding at beginning of period 5,000 $ 1.73 13,333 $ 1.73 Granted — — — — Vested (5,000 ) 1.73 (6,667 ) 1.73 Forfeited — — — — Outstanding at end of period — $ — 6,666 $ 1.73

MAJOR CUSTOMERS AND SUPPLIERS (

MAJOR CUSTOMERS AND SUPPLIERS (Tables)	6 Months Ended
	Dec. 31, 2015
Risks and Uncertainties [Abstract]
Schedule of sales by major customers	Information with respect to customers that accounted for sales in excess of 10% of our total sales in either of the three-month and the six-month periods ended December 31, 2015 and 2014, is as follows (in thousands, except percentages): Three Months Ended December 31, 2015 2014 Amount Percent of Amount Percent of Total revenue $ 5,439 100 % $ 2,792 100 % Customer concentration: Customer 1 $ 1,311 24 % $ 11 — Customer 2 1,213 22 % 5 — Customer 3 1,169 22 % 1,691 61 % Total $ 3,693 68 % $ 1,707 61 % Six Months Ended December 31, 2015 2014 Amount Percent of Amount Percent of Total revenue $ 9,535 100 % $ 5,387 100 % Customer concentration: Customer 1 2,421 25 % 25 — Customer 3 1,795 19 % 3,198 59 % Customer 2 1,229 13 % 5 — Customer 4 1,004 11 % 271 5 % Total $ 6,449 68 % $ 3,499 65 % Information with respect to accounts receivable from those customers whom comprised more than 10 % of our gross accounts receivable at either December 31, 2015 or June 30, 2015, is as follows (in thousands, except percentages): December 31, 2015 June 30, 2015 Total gross accounts receivable, including amounts due from factor $ 2,763 100 % $ 2,362 100 % Customer concentration: Customer 1 $ 485 18 % $ 78 3 % Customer 2 754 27 % — — Customer 3 634 23 % 711 30 % Customer 4 314 11 % 303 13 % Customer 5 98 4 % 531 22 % Total $ 2,285 83 % $ 1,623 68 %
Schedule of suppliers that accounted for purchases in excess of 10% of our total purchases	Information with respect to suppliers that accounted for purchases in excess of 10% of our total purchases in either of the three-month and the six-month periods ended December 31, 2015 and 2014, is as follows (in thousands, except percentages): Three Months Ended December 31, 2015 2014 Amount Percent of Amount Percent of Total purchases $ 2,713 100 % $ 2,235 100 % Supplier concentration: Supplier 1 $ 240 9 % $ 436 20 % Supplier 2 51 2 % 224 10 % Total $ 291 11 % $ 660 30 % Six Months Ended December 31, 2015 2014 Amount Percent of Amount Percent of Total purchases $ 5,380 100 % $ 4,052 100 % Supplier concentration: Supplier 1 $ 693 13 % $ 658 16 % Supplier 2 218 4 % 394 10 % Total $ 911 17 % $ 1,052 26 %

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Dec. 31, 2015
Segment Reporting [Abstract]
Schedule of segment performance	The following tables summarize segment performance for the three and six months ended December 31, 2015 and 2014 (in thousands): Pro-Dex OMS Fineline ESD Corporate Unallocated Total Three months ended December 31, 2015 Net Sales $ 4,909 $ 208 $ 223 $ 99 $ — $ 5,439 Gross Profit 1,396 90 3 50 — 1,539 Operating Income (loss) 792 (114 ) (51 ) (40 ) (191 ) 396 Depreciation and amortization expense 145 3 18 — — 166 Pro-Dex OMS Fineline ESD Corporate Unallocated Total Three months ended December 31, 2014 Net Sales $ 2,428 $ 359 $ — $ 5 $ — $ 2,792 Gross Profit 449 245 — 2 — 696 Operating Income (loss) (193 ) 48 — (79 ) (169 ) (393 ) Depreciation and amortization expense 129 3 — — — 132 Pro-Dex OMS Fineline ESD Corporate Unallocated Total Six months ended December 31, 2015 Net Sales $ 8,329 $ 512 $ 486 $ 208 $ — $ 9,535 Gross Profit 2,206 244 29 118 — 2,597 Operating Income (loss) 1,011 (167 ) (79 ) (64 ) (423 ) 278 Depreciation and amortization expense 293 5 36 — — 334 Pro-Dex OMS Fineline ESD Corporate Unallocated Total Six months ended December 31, 2014 Net Sales $ 4,660 $ 722 $ — $ 5 $ — $ 5,387 Gross Profit 1,017 505 — 2 — 1,524 Operating Income (loss) (275 ) 134 — (79 ) (363 ) (583 ) Depreciation and amortization expense 254 5 — — — 259

BUSINESS ACQUISITIONS (Details)

BUSINESS ACQUISITIONS (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Jun. 30, 2015	Feb. 01, 2015	Dec. 01, 2014
Fair value of assets acquired:
Goodwill	$ 353	$ 353
Huber Precision [Member]
Consideration:
Cash		$ 209
Promissory note payable to seller
Total consideration		$ 209		$ 209
Fair value of assets acquired:
Inventory		5
Fixed Assets		37
Net assets acquired		$ 209
Goodwill
Huber Precision [Member] | Covenant Not To Compete [Member]
Fair value of assets acquired:
Intangible assets, other than goodwill		$ 30
Huber Precision [Member] | Trade Names [Member]
Fair value of assets acquired:
Intangible assets, other than goodwill
Huber Precision [Member] | Customer List And Backlog [Member]
Fair value of assets acquired:
Intangible assets, other than goodwill		$ 137
Fineline Molds [Member]
Consideration:
Cash		657
Promissory note payable to seller		100
Total consideration		$ 757	$ 757
Fair value of assets acquired:
Inventory
Fixed Assets		$ 149
Net assets acquired		404
Goodwill		353
Fineline Molds [Member] | Covenant Not To Compete [Member]
Fair value of assets acquired:
Intangible assets, other than goodwill		22
Fineline Molds [Member] | Trade Names [Member]
Fair value of assets acquired:
Intangible assets, other than goodwill		54
Fineline Molds [Member] | Customer List And Backlog [Member]
Fair value of assets acquired:
Intangible assets, other than goodwill		$ 179

BUSINESS ACQUISITIONS (Details

BUSINESS ACQUISITIONS (Details Narrative) $ in Thousands	6 Months Ended	12 Months Ended
	Dec. 31, 2015	Jun. 30, 2015USD ($)Number	Feb. 01, 2015USD ($)	Dec. 01, 2014USD ($)
Business Acquisition [Line Items]
Number of businesses acquired | Number		2
Huber Precision [Member]
Business Acquisition [Line Items]
Description of acquired entity	A manufacturer of machined parts, primarily for the oil and electronics industry.
Aggerate purchase price		$ 209		$ 209
Fineline Molds [Member]
Business Acquisition [Line Items]
Description of acquired entity	A manufacturer of plastic injection molds for a variety of industries.
Aggerate purchase price		$ 757	$ 757

BUSINESS ACQUISITIONS (Detail32

BUSINESS ACQUISITIONS (Details Narrative 1) - Fineline Molds [Member] $ in Thousands	Feb. 01, 2015USD ($)
Business Acquisition [Line Items]
Debt instrument, face amount	$ 100,000
Promissory note payment terms	Sixteen equal quarterly payments.
Promissory note stated percentage	4.00%
Promissory note payment of principal and accrued interest	$ 6,794
Term of promissory note	4 years

COMPOSITION OF CERTAIN FINANC33

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Raw materials / purchased components	$ 2,112	$ 2,025
Work in process	924	1,030
Sub-assemblies / finished components	1,189	1,095
Finished goods	256	160
Total inventory	$ 4,481	$ 4,310

COMPOSITION OF CERTAIN FINANC34

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Details 1) - USD ($) $ in Thousands	Dec. 31, 2015	Jun. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Total intangibles	$ 592	$ 591
Less accumulated amortization	(112)	(44)
Intangible assets, net	480	547
Capitalized Software Development Costs [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangibles	73	73
Covenant Not To Compete [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangibles	52	52
Trade Names [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangibles	54	54
Customer List And Backlog [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangibles	316	316
Patent-Related Costs [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangibles	$ 97	$ 96

DUE FROM FACTOR (Details Narrat

DUE FROM FACTOR (Details Narrative) - USD ($) $ in Thousands	Sep. 09, 2015	Dec. 31, 2015	Dec. 31, 2015	Dec. 31, 2014	Jun. 30, 2015
Short-term Debt [Line Items]
Due from factor		$ 912	$ 912
Proceeds from short term debt			1,600
Loan and Security Agreement ("Summit Loan") [Member]
Short-term Debt [Line Items]
Debt instrument, face amount	$ 1,000
Debt instrument, interest rate description	Bear interest at a rate of prime plus 2 percent.
Percentage of monthly administrative fee	0.70%
Debt instrument, term	18 months
Debt instrument, annual facility fee	$ 10
Due from factor		912	912
Proceeds from short term debt		$ 1,300	$ 1,600

WARRANTY (Details)

WARRANTY (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Beginning balance	$ 312	$ 213	$ 261	$ 237
Accruals during the period	56	79	151	$ 150
Changes in estimates of prior period warranty accruals	17	76	27
Warranty amortization	(18)	(36)	(72)	$ (55)
Ending balance	$ 367	$ 332	$ 367	$ 332

WARRANTY (Details Narrative)

WARRANTY (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Product Warranties Disclosures [Abstract]
Warranty expenses	$ 73	$ 155	$ 178	$ 150

NET INCOME (LOSS) PER SHARE (De

NET INCOME (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Basic:
Income (loss) from continuing operations	$ 391	$ (202)	$ 265	$ (383)
Basic (in shares)	4,143	4,170	4,142	4,190
Basic income (loss) per share from continuing operations	$ 0.09	$ (0.05)	$ 0.06	$ (0.09)
Income from discontinued operations		$ 10		$ 21
Weighted average shares outstanding - Basic	4,143	4,170	4,142	4,190
Basic and diluted earnings per share from discontinued operations	$ 0	$ 0	$ 0	$ 0
Net income (loss)	$ 391	$ (192)	$ 265	$ (362)
Basic income (loss) per share	$ 0.09	$ (0.05)	$ 0.06	$ (0.09)
Diluted:
Income (loss) from continuing operations	$ 391	$ (202)	$ 265	$ (383)
Basic (in shares)	4,143	4,170	4,142	4,190
Effect of dilutive securities - stock options	$ 22		$ 19
Diluted (in shares)	4,165	4,170	4,161	4,190
Basic and diluted loss per share from continuing operations	$ 0.09	$ (0.05)	$ 0.06	$ (0.09)
Income from discontinued operations		$ 10		$ 21
Weighted average shares outstanding	4,165	4,170	4,161	4,190
Diluted earnings per share from discontinued operations	$ 0	$ 0	$ 0	$ 0
Net income (loss)	$ 391	$ (192)	$ 265	$ (362)
Weighted average shares outstanding (in shares)	4,165	4,170	4,161	4,190
Diluted income (loss) per share	$ 0.09	$ (0.05)	$ 0.06	$ (0.09)

NET INCOME (LOSS) PER SHARE (39

NET INCOME (LOSS) PER SHARE (Details Narrative) - shares	3 Months Ended	6 Months Ended
	Dec. 31, 2014	Dec. 31, 2014
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation	27,683	23,399

INVESTMENT IN RAMSEY PROPERTY40

INVESTMENT IN RAMSEY PROPERTY AND RELATED NOTES RECEIVABLE AND VARIABLE INTEREST ENTITY CONSIDERATIONS (Details Narrative) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Dec. 31, 2015	Dec. 31, 2015	Dec. 31, 2014	Jun. 30, 2015	Mar. 31, 2015	Nov. 30, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable net				$ 1,652
Proceeds from liquidation of Ramsey assets		$ 277
Riverside Manufacturing, Inc [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from liquidation of Ramsey assets	$ 277
Riverside Manufacturing, Inc [Member] | Revolving Credit Facility [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Revolving loan agreement aggregate amount					$ 200
Revolving loan modification agreement aggregate amount	$ 300	$ 300
Two Promissory Notes (Loan Purchase and Sale Agreement) [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Notes receivable net						$ 1,200
Description of cross collateral notes		The promissory notes were cross-collateralized and originally secured by (collectively, the “Collateral”), among other things, real property consisting of 2.3 acres of land and an approximate 30,000 square foot industrial building and a security interest in substantially all of the assets of Riverside Manufacturing, Inc. (“Riverside”) (consisting primarily of machine shop equipment and accounts receivable).

NOTES PAYABLE AND FINANCING T41

NOTES PAYABLE AND FINANCING TRANSACTIONS (Details Narrative) - USD ($) $ in Thousands	Sep. 09, 2015	Sep. 08, 2015	Feb. 01, 2015	Dec. 31, 2015	Dec. 31, 2015	Dec. 31, 2014	Mar. 15, 2016	Jun. 30, 2015
Short-term Debt [Line Items]
Proceeds from notes payable					$ 500
Due from factor				$ 912	912
Borrowed from Summit loan					1,600
Fineline Molds [Member]
Short-term Debt [Line Items]
Debt instrument, face amount			$ 100,000
Debt instrument, term			4 years
Promissory note payment terms			Sixteen equal quarterly payments.
Interest rate			4.00%
Promissory note payment of principal and accrued interest			$ 6,794
Short term borrowings				82	82			$ 94
Loan and Security Agreement ("Summit Loan") [Member]
Short-term Debt [Line Items]
Description of interest rate	Bear interest at a rate of prime plus 2 percent.
Debt instrument, face amount	$ 1,000
Percentage of monthly administrative fee	0.70%
Debt instrument, term	18 months
Debt instrument, annual facility fee	$ 10
Due from factor				912	912
Borrowed from Summit loan				1,300	$ 1,600
Fortitude Income Funds, LLC [Member]
Short-term Debt [Line Items]
Proceeds from notes payable		$ 500
Description of interest rate					Bears interest at 12 percent per annum.
Debt instrument, origination fee				$ 15	$ 15
Debt instrument, maturity date					Mar. 15, 2016
Fortitude Income Funds, LLC [Member] | Subsequent Event [Member]
Short-term Debt [Line Items]
Principal up front payment							$ 3,750

INCOME TAXES (Details)

INCOME TAXES (Details) $ in Thousands	6 Months Ended
	Dec. 31, 2015USD ($)
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Beginning balance	$ 399
Additions based on tax positions related to the current year	27
Additions for tax positions of prior years	8
Ending balance	$ 434

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2015	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Deferred tax assets, valuation allowance	$ 3,900
Unrecognized tax benefits	$ 434	$ 399

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details) - $ / shares	6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at beginning of period	106,668	165,002
Options granted
Options exercised	(7,500)
Options forfeited		(8,334)
Outstanding at end of period	99,168	156,668
Stock Options Exercisable at end of period	99,168	150,001
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding at beginning of period (in dollars per share)	$ 2.41	$ 2.40
Options granted (in dollars per share)
Options exercised (in dollars per share)	$ 2.14
Options forfeited (in dollars per share)		$ 5.58
Outstanding at end of period (in dollars per share)	$ 2.43	2.23
Stock Options Exercisable at end of period (in dollars per share)	$ 2.43	$ 2.26

SHARE-BASED COMPENSATION (Det45

SHARE-BASED COMPENSATION (Details 1) $ / shares in Units, $ in Thousands	6 Months Ended
	Dec. 31, 2015USD ($)$ / sharesshares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number Outstanding (in shares) | shares	99,168
Weighted-Average Remaining Contractual Life	5 years 1 month 24 days
Weighted-Average Exercise Price (in dollars per share) | $ / shares	$ 2.43
Aggregate Intrinsic Value | $	$ 49,350
Number Outstanding (in shares) | shares	99,168
Weighted-Average Remaining Contractual Life	5 years 1 month 24 days
Weighted-Average Exercise Price (in dollars per share) | $ / shares	$ 2.43
Aggregate Intrinsic Value | $	$ 49,350
$0 to $2.50 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number Outstanding (in shares) | shares	87,500
Weighted-Average Remaining Contractual Life	5 years 9 months 11 days
Weighted-Average Exercise Price (in dollars per share) | $ / shares	$ 1.86
Aggregate Intrinsic Value | $	$ 49,350
Number Outstanding (in shares) | shares	87,500
Weighted-Average Remaining Contractual Life	5 years 9 months 11 days
Weighted-Average Exercise Price (in dollars per share) | $ / shares	$ 1.86
Aggregate Intrinsic Value | $	$ 49,350
$2.5 to $5.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number Outstanding (in shares) | shares	3,334
Weighted-Average Remaining Contractual Life	1 year 4 months 17 days
Weighted-Average Exercise Price (in dollars per share) | $ / shares	$ 4.38
Aggregate Intrinsic Value | $
Number Outstanding (in shares) | shares	3,334
Weighted-Average Remaining Contractual Life	1 year 4 months 17 days
Weighted-Average Exercise Price (in dollars per share) | $ / shares	$ 4.38
Aggregate Intrinsic Value | $
$7.51 to $10.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number Outstanding (in shares) | shares	8,334
Weighted-Average Remaining Contractual Life	7 days
Weighted-Average Exercise Price (in dollars per share) | $ / shares	$ 7.65
Aggregate Intrinsic Value | $
Number Outstanding (in shares) | shares	8,334
Weighted-Average Remaining Contractual Life	7 days
Weighted-Average Exercise Price (in dollars per share) | $ / shares	$ 7.65
Aggregate Intrinsic Value | $

SHARE-BASED COMPENSATION (Det46

SHARE-BASED COMPENSATION (Details 2) - Restricted Shares [Member] - $ / shares	6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding at beginning of period	5,000	13,333
Granted
Vested	(5,000)	(6,667)
Forfeited
Outstanding at end of period		6,666
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Outstanding at beginning of period (in dollars per share)	$ 1.73	$ 1.73
Granted (in dollars per share)
Vested (in dollars per share)	$ 1.73	$ 1.73
Forfeited (in dollars per share)
Outstanding at end of period (in dollars per share)		$ 1.73

SHARE-BASED COMPENSATION (Det47

SHARE-BASED COMPENSATION (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended			6 Months Ended		12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Jun. 30, 2014	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	$ 0		$ 4	$ 2	$ 11
Employees Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares reserved for future issuance						531,381
Directors Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares reserved for future issuance							173,334
ESPP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Description of 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 (in shares)		1,925
Exercise price (in dollars per share)		$ 2.34
Restricted Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)	1,333,333			1,333,333
Description of vesting period				Vesting periods as determined by the Board for the Employee Stock Option Plan and six months for the Directors’ Stock Option Plan, and terms of up to ten years, subject to forfeit 30 days after the holder ceases to be an employee or 90 days after the holder ceases to be a director, as the case may be.
Restricted Shares [Member] | Employees Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)	1,066,667			1,066,667
Forfeiture period of stock option in case of cessation of employment				30 days
Restricted Shares [Member] | Directors Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)	266,666			266,666
Forfeiture period of stock option in case of cessation of employment				90 days

MAJOR CUSTOMERS AND SUPPLIERS48

MAJOR CUSTOMERS AND SUPPLIERS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Jun. 30, 2015
Concentration Risk [Line Items]
Total revenue	$ 5,439	$ 2,792	$ 9,535	$ 5,387
Sales [Member]
Concentration Risk [Line Items]
Total revenue	$ 5,439	$ 2,792	$ 9,535	$ 5,387
Percentage of concentrations risk	100.00%	100.00%	100.00%	100.00%
Sales [Member] | Customer [Member]
Concentration Risk [Line Items]
Total revenue	$ 3,693	$ 1,707	$ 6,449	$ 3,499
Percentage of concentrations risk	68.00%	61.00%	68.00%	65.00%
Sales [Member] | Customer 1 [Member]
Concentration Risk [Line Items]
Total revenue	$ 1,311	$ 11	$ 2,421	$ 25
Percentage of concentrations risk	24.00%		25.00%
Sales [Member] | Customer 2 [Member]
Concentration Risk [Line Items]
Total revenue	$ 1,213	$ 5	$ 1,229	$ 5
Percentage of concentrations risk	22.00%		13.00%
Sales [Member] | Customer 3 [Member]
Concentration Risk [Line Items]
Total revenue	$ 1,169	$ 1,691	$ 1,795	$ 3,198
Percentage of concentrations risk	22.00%	61.00%	19.00%	59.00%
Sales [Member] | Customer 4 [Member]
Concentration Risk [Line Items]
Total revenue			$ 1,004	$ 271
Percentage of concentrations risk			11.00%	5.00%
Accounts Receivable [Member]
Concentration Risk [Line Items]
Total gross accounts receivable, including amounts due from factor	$ 2,763		$ 2,763		$ 2,362
Percentage of concentrations risk			100.00%		100.00%
Accounts Receivable [Member] | Customer [Member]
Concentration Risk [Line Items]
Total gross accounts receivable, including amounts due from factor	2,285		$ 2,285		$ 1,623
Percentage of concentrations risk			83.00%		68.00%
Accounts Receivable [Member] | Customer 1 [Member]
Concentration Risk [Line Items]
Total gross accounts receivable, including amounts due from factor	485		$ 485		$ 78
Percentage of concentrations risk			18.00%		3.00%
Accounts Receivable [Member] | Customer 2 [Member]
Concentration Risk [Line Items]
Total gross accounts receivable, including amounts due from factor	754		$ 754
Percentage of concentrations risk			27.00%
Accounts Receivable [Member] | Customer 3 [Member]
Concentration Risk [Line Items]
Total gross accounts receivable, including amounts due from factor	634		$ 634		$ 711
Percentage of concentrations risk			23.00%		30.00%
Accounts Receivable [Member] | Customer 4 [Member]
Concentration Risk [Line Items]
Total gross accounts receivable, including amounts due from factor	314		$ 314		$ 303
Percentage of concentrations risk			11.00%		13.00%
Accounts Receivable [Member] | Customer 5 [Member]
Concentration Risk [Line Items]
Total gross accounts receivable, including amounts due from factor	$ 98		$ 98		$ 531
Percentage of concentrations risk			4.00%		22.00%

MAJOR CUSTOMERS AND SUPPLIERS49

MAJOR CUSTOMERS AND SUPPLIERS (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Concentration Risk [Line Items]
Total purchases	$ 3,900	$ 2,096	$ 6,938	$ 3,863
Purchase [Member]
Concentration Risk [Line Items]
Total purchases	$ 2,713	$ 2,235	$ 5,380	$ 4,052
Percentage of concentrations risk	100.00%	100.00%	100.00%	100.00%
Purchase [Member] | Supplier [Member]
Concentration Risk [Line Items]
Total purchases	$ 291	$ 660	$ 911	$ 1,052
Percentage of concentrations risk	11.00%	30.00%	17.00%	26.00%
Purchase [Member] | Supplier 1 [Member]
Concentration Risk [Line Items]
Total purchases	$ 240	$ 436	$ 693	$ 658
Percentage of concentrations risk	9.00%	20.00%	13.00%	16.00%
Purchase [Member] | Supplier 2 [Member]
Concentration Risk [Line Items]
Total purchases	$ 51	$ 224	$ 218	$ 394
Percentage of concentrations risk	2.00%	10.00%	4.00%	10.00%

MAJOR CUSTOMERS AND SUPPLIERS50

MAJOR CUSTOMERS AND SUPPLIERS (Details Narrative)	6 Months Ended	12 Months Ended
	Dec. 31, 2015	Jun. 30, 2015
Accounts Payable [Member] | Supplier [Member]
Concentration Risk [Line Items]
Percentage of accounts payable concentrations risk	2.00%	36.00%

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Segment Reporting Information [Line Items]
Net Sales	$ 5,439	$ 2,792	$ 9,535	$ 5,387
Gross Profit	1,539	696	2,597	1,524
Operating Income (loss)	396	(393)	278	(583)
Depreciation and amortization expense	166	132	334	259
Pro-Dex [Member]
Segment Reporting Information [Line Items]
Net Sales	4,909	2,428	8,329	4,660
Gross Profit	1,396	449	2,206	1,017
Operating Income (loss)	792	(193)	1,011	(275)
Depreciation and amortization expense	145	129	293	254
OMS [Member]
Segment Reporting Information [Line Items]
Net Sales	208	359	512	722
Gross Profit	90	245	244	505
Operating Income (loss)	(114)	48	(167)	134
Depreciation and amortization expense	3	$ 3	5	$ 5
Fineline [Member]
Segment Reporting Information [Line Items]
Net Sales	223		486
Gross Profit	3		29
Operating Income (loss)	(51)		(79)
Depreciation and amortization expense	18		36
ESD [Member]
Segment Reporting Information [Line Items]
Net Sales	99	$ 5	208	$ 5
Gross Profit	50	2	118	2
Operating Income (loss)	$ (40)	$ (79)	$ (64)	$ (79)
Corporate Unallocated [Member]
Segment Reporting Information [Line Items]
Net Sales
Gross Profit
Operating Income (loss)	$ (191)	$ (169)	$ (423)	$ (363)
Depreciation and amortization expense

SEGMENT INFORMATION (Details Na

SEGMENT INFORMATION (Details Narrative)	6 Months Ended
	Dec. 31, 2015Number
Segment Reporting [Abstract]
Number of reportable segments	4

SUBSEQUENT EVENT (Details Narra

SUBSEQUENT EVENT (Details Narrative) $ in Thousands	Jan. 06, 2016USD ($)ft²	Dec. 31, 2015USD ($)	Jun. 30, 2015USD ($)
Purchase price			$ 1,652
Subsequent Event [Member] | Real Estate Purchase Contract (Earnest Money Deposit and Real Estate Purchase Contract) [Member] | Minnesota [Member]
Area of land | ft²	2.2
Area of buliding | ft²	30,000
Purchase price	$ 1,653,000
Broker commissions	$ 99,180
Broker commissions percent of purchase price	6.00%