Pro-Dex (PDEX) 10-Q 9 Feb 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2016	Feb. 07, 2017
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, 2016
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		4,020,204
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,017

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Dec. 31, 2016	Jun. 30, 2016
Current Assets:
Cash and cash equivalents	$ 2,180	$ 2,294
Investments	291
Accounts receivable, net of allowance for doubtful accounts of $25 and $20, respectively	1,026	1,469
Due from factor	2,409	1,419
Deferred costs	582	238
Assets held for sale	310	287
Other current receivables	32	91
Inventory	3,272	3,364
Prepaid expenses	123	129
Total current assets	10,225	9,291
Equipment and leasehold improvements, net	1,458	1,222
Deferred income taxes	2,837
Goodwill	112	112
Intangibles, net	331	451
Other assets	71	71
Total assets	15,034	11,147
Current Liabilities:
Accounts payable	761	841
Accrued expenses	1,446	1,076
Deferred revenue	452	212
Notes payable	26	26
Income taxes payable	3	1
Capital lease obligations	31
Total current liabilities	2,719	2,156
Deferred rent, net of current portion	23	68
Notes and capital leases payable, net of current portion	91	46
Total non-current liabilities	114	114
Total liabilities	2,833	2,270
Shareholders' equity:
Common shares; no par value; 50,000,000 shares authorized; 4,040,169 and 4,052,987 shares issued and outstanding at December 31, 2016 and June 30, 2016, respectively	17,838	17,988
Accumulated comprehensive loss	(6)
Accumulated deficit	(5,631)	(9,111)
Total shareholders' equity	12,201	8,877
Total liabilities and shareholders' equity	$ 15,034	$ 11,147

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2016	Jun. 30, 2016
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 25	$ 20
Common shares, no par value (in dollars per share)	$ 0	$ 0
Common shares, authorized	50,000,000	50,000,000
Common shares, issued	4,040,169	4,052,987
Common shares, outstanding	4,040,169	4,052,987

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Income Statement [Abstract]
Net sales	$ 4,599	$ 5,231	$ 9,728	$ 9,023
Cost of sales	3,288	3,806	6,995	6,694
Gross profit	1,311	1,425	2,733	2,329
Operating expenses:
Selling expenses	159	223	421	394
General and administrative expenses	605	452	1,169	986
Research and development costs	278	264	581	528
Total operating expenses	1,042	939	2,171	1,908
Operating income	269	486	562	421
Interest expense	(4)	(20)	(7)	(26)
Interest income	11	1	12
Gain from disposal of equipment		14	3	14
Income from continuing operations before income taxes	276	481	570	409
Income tax (expense) benefit	2,859		2,852	(1)
Income from continuing operations	3,135	481	3,422	408
Income (loss) from discontinued operations, net of income taxes	59	(90)	58	(143)
Net income	3,194	391	3,480	265
Other comprehensive income (loss), net of tax:
Unrealized loss from marketable equity investments	(6)		(6)
Comprehensive income	$ 3,188	$ 391	$ 3,474	$ 265
Basic net income per share:
Income from continuing operations (in dollars per share)	$ 0.77	$ 0.11	$ 0.84	$ 0.1
Income (loss) from discontinued operations (in dollars per share)	0.02	(0.02)	0.01	(0.04)
Net income (in dollars per share)	0.79	0.09	0.85	0.06
Diluted net income per share:
Income from continuing operations (in dollars per share)	0.77	0.11	0.84	0.1
Income (loss) from discontinued operations (in dollars per share)	0.01	(0.02)	0.01	(0.04)
Net income (in dollars per share)	$ 0.78	$ 0.09	$ 0.85	$ 0.06
Weighted average common shares outstanding:
Basic (in shares)	4,057	4,143	4,060	4,142
Diluted (in shares)	4,092	4,165	4,098	4,161
Common shares outstanding (in shares)	4,040	4,149	4,040	4,149

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 3,480	$ 265
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	275	334
Gain from disposal of equipment	(3)	(14)
Share-based compensation	2	2
Impairment of intangible assets	113
Deferred income tax benefit	(2,837)
Bad debt expense (recovery)	5	(16)
Changes in operating assets and liabilities:
Accounts receivable, due from factor and other current receivables	(493)	(383)
Deferred costs	(344)	745
Assets held for sale	(23)
Inventory	92	(171)
Prepaid expenses and other assets	6
Accounts payable, accrued expenses and deferred rent	245	(778)
Deferred revenue	240	(312)
Income taxes payable	2
Net cash provided by (used in) operating activities	760	(328)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of investments	(300)
Purchases of equipment and leasehold improvements	(376)	(21)
Purchase of Investment in Ramsey property and related notes receivable		(86)
Proceeds from liquidation of Ramsey assets		277
Proceeds from sale of equipment	3	14
Increase in intangibles	(20)	(1)
Net cash provided by (used in) investing activities	(693)	183
CASH FLOWS FROM FINANCING ACTIVITIES:
Purchase of common stock	(168)
Proceeds from Note Payable		500
Proceeds from exercise of options and ESPP contributions	16	21
Borrowings from Summit Loan	600	1,600
Repayments on Summit Loan	(600)	(1,600)
Principal payments on notes payable and capital lease	(29)	(20)
Net cash provided by (used in) financing activities	(181)	501
Net increase (decrease) in cash and cash equivalents	(114)	356
Cash and cash equivalents, beginning of period	2,294	697
Cash and cash equivalents, end of period	2,180	1,053
Noncash investing and financing activity:
Capital lease for the acquisition of equipment	105
Value of shares surrendered in connection with a stock option exercise	45
Cash paid during the period for:
Interest	7	21
Income taxes	$ 27	$ 3

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
BASIS OF PRESENTATION	NOTE 1. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of Pro-Dex, Inc. (“we”, “us”, “our”, “Pro-Dex” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States (“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, 2016. 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, 2016. 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. Subsequently, the FASB has issued the following standards related to ASU 2014-09: ASU 2016-08, Revenue from Contracts with Customers (Topic 606): “Principal versus Agent Considerations”; ASU 2016-10, Revenue from Contracts with Customers (Topic 606): “Identifying Performance Obligations and Licensing”; and ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): “Narrow-Scope Improvements and Practical Expedients”. 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 ASU also requires expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required about customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. While we are still in the process of evaluating the effect of adoption on our consolidated financial statements and are currently assessing our contracts with customers, we do not currently expect a material impact on our results of operations, cash flows or financial position. We anticipate we will expand our consolidated financial statement disclosures in order to comply with the new ASU. We have not yet concluded on our transition method upon adoption, but plan to select a transition method by the end of fiscal 2017. In February 2016, the FASB issued ASU 2016-02, (Topic 842) “Leases”. The objective of this update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those annual periods and is to be applied utilizing a modified retrospective approach. While we are still in the process of evaluating the effect of adoption on our consolidated financial statements and are currently assessing our leases, In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718) “Improvements to Employee Share-Based Payment Accounting”. This update simplifies the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. Based on the fact that all of our issued and outstanding options are fully vested, this guidance will impact our accounting based upon future grants of stock based awards, if any. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), “Classification of Certain Cash Receipts and Cash Payments”. This update provides guidance on eight specific cash flow issues: (1) debt prepayment or debt extinguishment costs; (2) settlement of zero-coupon bonds; (3) contingent consideration payments made after a business combination; (4) proceeds from the settlement of insurance claims; (5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; (6) distributions received from equity method investees; (7) beneficial interests in securitization transactions; and (8) separately identifiable cash flows and application of the predominance principle. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. We do not expect the application of this guidance to have a material impact on our consolidated financial statements. Reclassifications The short-term portion of deferred rent, in the amount of $79,000 as of June 30, 2016, has been reclassified to accrued liabilities to conform to the current period presentation. As described in more detail in Note 3 below, the assets sold subsequent to December 31, 2016 relating to the Company’s Oregon Micro Systems (“OMS”) division have been reclassified as assets held for sale in accordance with applicable accounting guidance. These balance sheet reclassifications had no impact on our condensed consolidated statement of operations.

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	6 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
DESCRIPTION OF BUSINESS	NOTE 2. DESCRIPTION OF BUSINESS We specialize in the design and manufacture of powered surgical and dental instruments, and serve such markets as medical, research and industrial. Pro-Dex’s products are found in hospitals, dental offices, and medical engineering labs around the world. During fiscal 2015 we acquired Fineline Molds (“Fineline”) and Huber Precision (“Huber”), businesses that manufacture plastic injection molds and machined parts, respectively, for a wide variety of industries. We also provide engineering consulting and placement services, as well as quality and regulatory consulting services through our Engineering Services Division. Through January 27, 2017, we also designed and manufactured multi-axis motion control systems used in factory automation and scientific research markets and these products can be found in scientific research facilities and high tech manufacturing operations around the world. (See Note 3)

ASSETS HELD FOR SALE

ASSETS HELD FOR SALE	6 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
ASSETS HELD FOR SALE	NOTE 3. ASSETS HELD FOR SALE On January 27, 2017, we sold certain of the assets and the business operations of our OMS division located in Beaverton Oregon. We sold the business to our long time general manager of the division. The sale was structured as an asset sale as disclosed in a Form 8-K filed with the SEC on January 30, 2017. The aggregate sales price received was $640,000, subject to adjustment based upon the value of the OMS receivables at the date of close and no liabilities other than warranty obligations were assumed by the buyer. As a result of the sale, this division has been classified as a discontinued operation in conformity with applicable accounting guidance and the assets that were sold have been reclassified as assets held for sale on our condensed consolidated balance sheets. Accordingly, unless otherwise indicated, OMS’s results have been reported as discontinued operations and removed from all financial discussions of continuing operations. The following summarizes the carrying values of the assets sold as of each respective balance sheet date (in thousands): December 31, June 30, Assets held for sale: Inventory $ 242 $ 209 Fixed assets 57 64 Prepaid expenses 2 5 Other assets 9 9 Assets held for sale $ 310 $ 287 The divestiture was completed in support of raising capital to invest in our core medical device product development efforts. Operating results of the OMS division are as follows (in thousands): T hree Months Ended Six Months Ended 2016 2015 2016 2015 Revenues $ 381 $ 208 $ 664 $ 512 Income (loss) from discontinued operations: Income (loss) from discontinued operations, before taxes $ 97 $ (90 ) $ 96 $ (143 ) Income tax expense 38 — 38 — Net income (loss) from discontinued operations $ 59 $ (90 ) $ 58 $ (143 ) Income from discontinued operations consists of direct revenues and direct expenses of the OMS business, including cost of revenues, as well as other fixed costs to the extent that such costs will be eliminated as a result of the sale. The Company historically did not allocate corporate overhead to this division. Additionally, the OMS division has historically been the only division that was significant enough to require segment disclosures and as such, effective with this divestiture, we no longer require segment disclosure as our business is currently run.

COMPOSITION OF CERTAIN FINANCIA

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS	6 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS	NOTE 4. COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS Inventory Inventory is stated at the lower of cost (first-in, first-out) or market and consists of the following (in thousands): D ecember 31, June 30, Raw materials /purchased components $ 1,252 $ 1,462 Work in process 813 818 Sub-assemblies /finished components 1,001 1,010 Finished goods 206 74 Total inventory $ 3,272 $ 3,364 Investments Investments are stated at market value and consist of the following (in thousands): December 31, June 30, Marketable equity securities $ 291 $ — Investments at December 31, 2016 had an aggregate cost basis of $300,000 and gross unrealized losses of $9,000, net of income taxes of $3,000. Intangibles Intangibles consist of the following (in thousands): December 31, June 30, Capitalized software development costs $ — $ 73 Covenant not to compete 52 52 Trade name 50 50 Customer list and backlog 167 316 Patent-related costs 140 121 Total intangibles $ 409 $ 612 Less accumulated amortization (78 ) (161 ) $ 331 $ 451 Capitalized software development costs relate to internally developed software, which was fully amortized during last fiscal year and both the software development costs and corresponding accumulated amortization were offset during the first quarter of fiscal 2017. Both the covenant not to compete and the customer list and backlog relate to assets acquired in conjunction with the business acquisitions described in Note 2 above and are being amortized over various periods not to exceed ten years. The customer backlog has been fully amortized and both the cost and related accumulated amortization have been offset during the current fiscal year. During the first quarter of fiscal 2017, we recognized an impairment charge for the remaining un-amortized customer list related to the Huber business in the amount of $113,000, as we do not expect there to be any significant future cash flows resulting from these customer relationships. The trade name relates exclusively to Fineline 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 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.

DUE FROM FACTOR

DUE FROM FACTOR	6 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
DUE FROM FACTOR	NOTE 5. 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 (5.75%), 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. Pursuant to the terms of the Summit Loan, during the third quarter of fiscal 2017 we informed Summit of our intent to terminate the loan in accordance with its initial loan commitment period ending on March 9, 2017. We have commenced preliminary discussions with our bank to obtain a revolving credit facility with them. As of the present time, there is no additional facility available to us, nor can we provide any assurance that there will be in the future. As of December 31, 2016, the total amount of receivables that have been assigned to the Factor pursuant to the Summit Loan is $2.4 million 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, 2016, we borrowed $200,000 and $600,000, respectively, under the Summit Loan, which amounts were paid in full by December 31, 2016. Therefore, at December 31, 2016, we had no outstanding borrowings against the Summit Loan.

WARRANTY

WARRANTY	6 Months Ended
	Dec. 31, 2016
Product Warranties Disclosures [Abstract]
WARRANTY	NOTE 6. 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, 2016 and June 30, 2016, the warranty reserve amounted to $418,000 and $365,000, 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, 2016 and 2015 was $144,000 and $73,000, respectively, and for the six months ended December 31, 2016 and 2015 was $214,000 and $178,000, respectively. Information regarding the accrual for warranty costs for the three and six months ended December 31, 2016 and 2015 are as follows (in thousands): As of and for the 2016 2015 Beginning balance $ 349 $ 312 Accruals during the period 126 56 Changes in estimates of prior period warranty accruals 18 17 Warranty amortization (75 ) (18 ) Ending balance $ 418 $ 367 As of and for the 2016 2015 Beginning balance $ 365 $ 261 Accruals during the period 227 151 Changes in estimates of prior period warranty accruals (13 ) 27 Warranty amortization (161 ) (72 ) Ending balance $ 418 $ 367

NET INCOME (LOSS) PER SHARE

NET INCOME (LOSS) PER SHARE	6 Months Ended
	Dec. 31, 2016
Basic net income per share:
NET INCOME (LOSS) PER SHARE	NOTE 7. 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. 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 December 31, Six Months Ended December 31, 2016 2015 2016 2015 Basic: Income from continuing operations $ 3,135 $ 481 $ 3,422 $ 408 Weighted average shares outstanding 4,057 4,143 4,060 4,142 Basic income per share from continuing operations $ 0.77 $ 0.11 $ 0.84 $ 0.10 Income (loss) from discontinued operations $ 59 $ (90 ) $ 58 $ (143 ) Weighted average shares outstanding 4,057 4,143 4,060 4,142 Basic and diluted earnings (loss) per share from discontinued operations $ 0.02 $ (0.02 ) $ 0.01 $ (0.04 ) Net income $ 3,194 $ 391 $ 3,480 $ 265 Weighted average shares outstanding 4,057 4,143 4,060 4,142 Basic income per share $ 0.79 $ 0.09 $ 0.85 $ 0.06 Diluted: Income from continuing operations $ 3,135 $ 481 $ 3,422 $ 408 Weighted average shares outstanding 4,057 4,143 4,060 4,142 Effect of dilutive securities – stock options 35 22 38 19 Weighted average shares used in calculation of diluted earnings per share 4,092 4,165 4,098 4,161 Diluted loss per share from continuing operations $ 0.77 $ 0.11 $ 0.84 $ 0.10 Income (loss) from discontinued operations $ 59 $ (90 ) $ 58 $ (143 ) Weighted average shares outstanding 4,092 4,165 4,098 4,161 Diluted earnings (loss) per share from discontinued operations $ 0.01 $ (0.02 ) $ 0.01 $ (0.04 ) Net income $ 3,194 $ 391 $ 3,480 $ 265 Weighted average shares outstanding 4,092 4,165 4,098 4,161 Diluted income per share $ 0.78 $ 0.09 $ 0.85 $ 0.06

INVESTMENT IN RAMSEY PROPERTY A

INVESTMENT IN RAMSEY PROPERTY AND RELATED NOTES RECEIVABLE	6 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
INVESTMENT IN RAMSEY PROPERTY AND RELATED NOTES RECEIVABLE	NOTE 8. INVESTMENT IN RAMSEY PROPERTY AND RELATED NOTES RECEIVABLE 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). 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. The $86,000 reflected on the Company’s condensed consolidated statement of cash flows for the nine months ended December 31, 2015 as Purchase of Investment in Ramsey property and related notes receivable represents an extension of credit under the amended revolving loan agreement. Additionally, during the fourth quarter of fiscal 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 were considered impaired because we did not receive any contractual payments. Accordingly, the recorded investment was 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. During the six months ended December 31, 2015 we collected $277,000 from selling inventory and equipment and collecting outstanding receivables, all of which served as collateral for Riverside’s debt.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Dec. 31, 2016
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, with some consideration given to our estimates of future taxable income by jurisdictions in which we operate and the period over which our deferred tax assets would be recoverable. During the second quarter of fiscal year ending June 30, 2017, we released approximately $3.8 million of valuation allowance because we now believe it is more likely than not that we will be able to generate sufficient levels of profitability to realize substantially all of our deferred tax assets. As of December 31, 2016, we have accrued $459,000 of unrecognized tax benefits related to federal and state income tax matters. This entire balance is expected to reduce the Company’s income tax expense if recognized and result in a corresponding decrease in the Company’s effective tax rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Balance at July 1, 2016 $ 446 Additions based on tax positions related to the current year 13 Additions for tax positions of prior years — Balance at December 31, 2016 $ 459 We recognize accrued interest and penalties related to unrecognized tax benefits when applicable. As of December 31, 2016, 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, 2013 and later. Our state income tax returns are open to audit under the statute of limitations for the years ended June 30, 2012 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, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
SHARE-BASED COMPENSATION	NOTE 10. SHARE-BASED COMPENSATION Through 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 “Former Stock Option Plans”). There was no share-based compensation expense for the three and six months ended December 31, 2016 as all outstanding options are fully vested. Share-based compensation expense for the three and six months ended December 31, 2015 was $0 and $2,000, 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 were reallocated 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 shares were reallocated for issuance under the provisions of the Employee Stock Purchase Plan described below. In September 2016, our Board approved the establishment of the 2016 Equity Incentive Plan, which was approved by our shareholders at the November 29, 2016 Annual Meeting. The 2016 Equity Incentive Plan provides for the award of up to 1,500,000 shares of the Company’s common stock in the form of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted shares, restricted stock units, performance awards and other stock-based awards. As of December 31, 2016, no awards have been granted from the 2016 Equity Incentive Plan. Stock Options No options were granted during the three or six months ended December 31, 2016 and 2015. As of December 31, 2016, there was no unrecognized compensation cost under the Former 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, 2016 and 2015: 2016 2015 Number of Weighted-Average Number of Weighted-Average Outstanding at July 1, 90,834 $ 1.95 106,668 $ 2.41 Options granted — — — — Options exercised (28,000 ) 1.82 (7,500 ) 2.14 Options forfeited — — — — Outstanding at end of period 62,834 $ 2.00 99,168 $ 2.43 Stock Options Exercisable at December 31, 62,834 $ 2.00 99,168 $ 2.43 Following is a summary of information regarding options outstanding and options exercisable at December 31, 2016: Options Outstanding & Exercisable Range of Number Outstanding Weighted-Avg. Weighted- Aggregate. Intrinsic $0 to 2.50 59,500 4.66 $ 1.87 $ 168,320 2.5 to 5.00 3,334 0.38 4.38 $ 1,067 Total 62,834 4.43years $ 2.00 $ 169,387 Employee Stock Purchase Plan In September 2014, our Board approved the establishment of an Employee Stock Purchase Plan (the “ESPP”), which was approved by our shareholders at the December 3, 2014 Annual Meeting. The ESPP conforms to the provisions of Section 423 of the Internal Revenue Code, has coterminous offering and purchase periods of six months, and bases the pricing to purchase shares of our common stock on a formula so as to result in a per share purchase price that approximates a 15% discount from the market price of a share of our common stock at the end of the purchase period. The Board of Directors also approved the provision that shares formerly reserved for issuance under the Former Stock Option Plans in excess of shares issuable pursuant to outstanding options under those plans, aggregating 704,715 shares, be reserved for issuance pursuant to the ESPP. During the first quarter ended September 30, 2016 and 2015, 2,056 and 1,925 shares were purchased, respectively, and allocated to employees based upon their contributions at prices of $4.91 and $2.34, respectively, per share. On a cumulative basis, since the inception of the ESPP plan, employees have purchased a total of 7,652 shares. During the three months ended December 31, 2016 and 2015 we did not record any stock compensation expense, due to the fact that no six month offering period ended during either quarter. During the six months ended December 31, 2016 and 2015, we recorded stock compensation expense in the amount of $2,000 and $1,000, respectively, relating to the ESPP.

MAJOR CUSTOMERS & SUPPLIERS

MAJOR CUSTOMERS & SUPPLIERS	6 Months Ended
	Dec. 31, 2016
Risks and Uncertainties [Abstract]
MAJOR CUSTOMERS & 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, 2016 and 2015, is as follows (in thousands, except percentages): Three Months Ended December 31, 2016 2015 Amount Percent of Amount Percent of Total sales $ 4,599 100 % $ 5,231 100 % Customer concentration: Customer 1 $ 2,487 54 % $ 1,311 25 % Customer 2 496 11 % 1,213 23 % Customer 3 271 6 % 1,169 22 % Total $ 3,254 71 % $ 3,693 70 % Six Months Ended December 31, 2016 2015 Amount Percent of Amount Percent of Total sales $ 9,728 100 % $ 9,023 100 % Customer concentration: Customer 1 4,648 48 % 2,421 27 % Customer 3 878 9 % 1,795 20 % Customer 2 758 8 % 1,229 13 % Customer 4 458 4 % 1,004 11 % Total $ 6,742 69 % $ 6,449 71 % Information with respect to accounts receivable from those customers whom comprised more than 10 % of our gross accounts receivable at either December 31, 2016 or June 30, 2016, is as follows (in thousands, except percentages): December 31, 2016 June 30, 2016 Total gross accounts receivable, including amounts due from factor $ 3,460 100 % $ 2,908 100 % Customer concentration: Customer 1 $ 2,044 59 % $ 850 29 % Customer 2 492 14 % 573 20 % Customer 5 361 11 % 337 12 % Total $ 2,897 84 % $ 1,760 61 % Information with respect to suppliers that accounted for purchases in excess of 10% of our total purchases either of three-month and the six-month periods ended December 31, 2016 and 2015, is as follows (in thousands, except percentages): Three Months Ended December 31, 2016 2015 Amount Percent of Total Amount Percent of Total Total purchases $ 2,887 100 % $ 2,713 100 % Supplier concentration: Supplier 1 $ 294 10 % $ 240 9 % Six Months Ended December 31, 2016 2015 Amount Percent of Total Amount Percent of Total Total purchases $ 6,285 100 % $ 5,380 100 % Supplier concentration: Supplier 1 $ 515 8 % $ 693 13 % Supplier 2 725 12 % 305 6 % Total $ 1,240 20 % $ 998 19 % Accounts payable due to Supplier 1 and Supplier 2 each represented 6% and 4% of total accounts payable as of December 31, 2016 and June 30, 2016, respectively.

NOTES PAYABLE AND FINANCING TRA

NOTES PAYABLE AND FINANCING TRANSACTIONS	6 Months Ended
	Dec. 31, 2016
Notes Payable [Abstract]
NOTES PAYABLE AND FINANCING TRANSACTIONS	NOTE 12. NOTES PAYABLE AND FINANCING TRANSACTIONS Summit Financial Resources LP As discussed in Note 5, 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 (5.75%), 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, 2016 we borrowed $200,000 and 600,000, respectively, under the Summit Loan, which amounts were paid in full by December 31, 2016. Pursuant to the terms of the Summit Loan, during the third quarter of fiscal 2017 we informed Summit of our intent to terminate the loan in accordance with its initial loan commitment period ending on March 9, 2017. Jules & Associates On July 21, 2016, we entered a master equipment lease agreement with Jules and Associates, Inc. to lease a specific machine used in our inspection process. The cost of the equipment was approximately $106,000 and the lease provides for 36 monthly payments in the amount of $3,121, as well as interim rent in the amount of $7,388. The lease was subsequently assigned to Hitachi Capital America Corporation. The balance owed on the lease as of December 31, 2016 is approximately $89,000. Fineline Molds In conjunction with our acquisition of the assets of Fineline (see Note 2), 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, 2016 and June 30, 2016 was approximately $58,000 and $70,000 respectively. Fortitude Income Funds The Company borrowed $500,000 from Fortitude Income Funds, LLC (“Fortitude”) under a promissory note dated September 8, 2015. The loan bore interest at 12 percent per annum, contained a loan origination fee of $15,000 plus expenses, and required monthly interest only payments until its maturity originally scheduled on March 15, 2016. The loan was repaid in full on February 22, 2016.

SHARE REPURCHASE PROGRAM

SHARE REPURCHASE PROGRAM	6 Months Ended
	Dec. 31, 2016
Equity [Abstract]
SHARE REPURCHASE PROGRAM	NOTE 13. SHARE REPURCHASE PROGRAM In September, 2013 our Board approved a share repurchase program authorizing the Company to repurchase up to 750,000 shares of our common stock. In accordance with, and as part of, this share repurchase program, our Board approved, on March 22, 2016, the adoption of a prearranged share repurchase plan intended to qualify for the safe harbor Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (“10b5-1 Plan” or “Plan”). The Plan became effective on March 23, 2016 and terminated on July 6, 2016 in accordance with its provisions. During the quarter ended September 30, 2016, we repurchased 9,107 shares at an aggregate cost of $49,000, inclusive of fees pursuant to this Plan. Additionally, during the quarter ended September 30, 2016, the Board approved a subsequent 10b5-1 Plan, which became effective on September 8, 2016 and terminates on the earlier of September 8, 2017 or when and if the maximum shares are repurchased. During the quarter ended December 31, 2016, the Investment Committee of the Board approved an additional concurrently running 10b5-1 Plan, which became effective on December 8, 2016 and terminates on the earlier of December 8, 2017 or when and if the maximum shares are repurchased. During the quarter ended December 31, 2016, we repurchased 26,668 shares at an aggregate cost of $119,000 inclusive of fees under the Plans. On a cumulative basis, we have repurchased a total of 205,236 shares under the share repurchase program at an aggregate cost of $777,000. All repurchases under the 10b5-1 Plans were administered through an independent broker.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 14. COMMITMENTS AND CONTINGENCIES Legal Matters In September 2015, Pro-Dex Sunfish Lake, LLC (“PDSL”) a subsidiary of the Company foreclosed its lien against the assets of Riverside (see Note 8). After the foreclosure, Scott Robertson (the former president of Riverside), Riverside and Heron Enterprises, LLC, an affiliated entity, asserted claims of breach of contract, fraudulent inducement and wrongful self-help eviction among others, against PDSL and another subsidiary of the Company, Pro-Dex Riverside LLC (“PDR”). PDSL and PDR asserted various claims, including slander of title, fraudulent misrepresentation, conversion and theft against each of those parties, in turn. In October 2016, the parties filed lawsuits against one another asserting the aforementioned claims. We are unable to quantify the value of the respective claims at this time, as the damages are unspecified in the pleadings. However, prior to the filing of the lawsuits, Mr. Robertson requested payment of $250,000 to fully settle the matter. We intend to pursue our claims and vigorously defend against the claims against us. While we believe that we are likely to prevail should this matter go to trial, there can be no assurances that we will prevail. In addition to the matter described above we are from time to time a party to various legal proceedings incidental to our business. There can be no certainty, however, that we may not ultimately incur liability or that such liability will not be material and adverse.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	NOTE 15. 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. Investments: Investments consist of marketable equity securities of publicly traded companies. As such, investments are classified within Level 1 of the valuation hierarchy. 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, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENT	NOTE 16. SUBSEQUENT EVENT On January 27, 2017, the Company entered into an Agreement for Sale and Purchase of Business Assets (the “Sale Agreement”), to sell certain assets of the OMS division as well as the operations of the business, for an amount of $640,000, subject to adjustment based upon the value of the OMS receivables at the date of close. The Sales Agreement is included in the Company’s Current Report on Form 8-K filed with the SEC on January 30, 2017, and the sale of the OMS division is expected to generate a gain on sale of the division in an amount of approximately $0.3 million to be recorded in the third quarter of fiscal 2017. See Note 3 for additional details.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	6 Months Ended
	Dec. 31, 2016
Accounting Policies [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. Subsequently, the FASB has issued the following standards related to ASU 2014-09: ASU 2016-08, Revenue from Contracts with Customers (Topic 606): “Principal versus Agent Considerations”; ASU 2016-10, Revenue from Contracts with Customers (Topic 606): “Identifying Performance Obligations and Licensing”; and ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): “Narrow-Scope Improvements and Practical Expedients”. 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 ASU also requires expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required about customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. While we are still in the process of evaluating the effect of adoption on our consolidated financial statements and are currently assessing our contracts with customers, we do not currently expect a material impact on our results of operations, cash flows or financial position. We anticipate we will expand our consolidated financial statement disclosures in order to comply with the new ASU. We have not yet concluded on our transition method upon adoption, but plan to select a transition method by the end of fiscal 2017. In February 2016, the FASB issued ASU 2016-02, (Topic 842) “Leases”. The objective of this update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those annual periods and is to be applied utilizing a modified retrospective approach. While we are still in the process of evaluating the effect of adoption on our consolidated financial statements and are currently assessing our leases, In March 2016, the FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718) “Improvements to Employee Share-Based Payment Accounting”. This update simplifies the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted. Based on the fact that all of our issued and outstanding options are fully vested, this guidance will impact our accounting based upon future grants of stock based awards, if any. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), “Classification of Certain Cash Receipts and Cash Payments”. This update provides guidance on eight specific cash flow issues: (1) debt prepayment or debt extinguishment costs; (2) settlement of zero-coupon bonds; (3) contingent consideration payments made after a business combination; (4) proceeds from the settlement of insurance claims; (5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; (6) distributions received from equity method investees; (7) beneficial interests in securitization transactions; and (8) separately identifiable cash flows and application of the predominance principle. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. We do not expect the application of this guidance to have a material impact on our consolidated financial statements.
Reclassifications	Reclassifications The short-term portion of deferred rent, in the amount of $79,000 as of June 30, 2016, has been reclassified to accrued liabilities to conform to the current period presentation. As described in more detail in Note 3 below, the assets sold subsequent to December 31, 2016 relating to the Company’s Oregon Micro Systems (“OMS”) division have been reclassified as assets held for sale in accordance with applicable accounting guidance. These balance sheet reclassifications had no impact on our condensed consolidated statement of operations.

ASSETS HELD FOR SALE (Tables)

ASSETS HELD FOR SALE (Tables)	6 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Schedule of the carrying values of the assets sold	The following summarizes the carrying values of the assets sold as of each respective balance sheet date (in thousands): December 31, June 30, Assets held for sale: Inventory $ 242 $ 209 Fixed assets 57 64 Prepaid expenses 2 5 Other assets 9 9 Assets held for sale $ 310 $ 287
Schedule of operating results of the OMS division	Operating results of the OMS division are as follows (in thousands): T hree Months Ended December 31, Six Months Ended December 31, 2016 2015 2016 2015 Revenues $ 381 $ 208 $ 664 $ 512 Income (loss) from discontinued operations: Income (loss) from discontinued operations, before taxes $ 97 $ (90 ) $ 96 $ (143 ) Income tax expense 38 — 38 — Net income (loss) from discontinued operations $ 59 $ (90 ) $ 58 $ (143 )

COMPOSITION OF CERTAIN FINANC24

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Tables)	6 Months Ended
	Dec. 31, 2016
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 $ 1,252 $ 1,462 Work in process 813 818 Sub-assemblies /finished components 1,001 1,010 Finished goods 206 74 Total inventory $ 3,272 $ 3,364
Schedule of investments are stated at market value	Investments are stated at market value and consist of the following (in thousands): December 31, June 30, Marketable equity securities $ 291 $ —
Schedule of intangibles	Intangibles consist of the following (in thousands): December 31, 2016 June 30, Capitalized software development costs $ — $ 73 Covenant not to compete 52 52 Trade name 50 50 Customer list and backlog 167 316 Patent-related costs 140 121 Total intangibles $ 409 $ 612 Less accumulated amortization (78 ) (161 ) $ 331 $ 451

WARRANTY (Tables)

WARRANTY (Tables)	6 Months Ended
	Dec. 31, 2016
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, 2016 and 2015 are as follows (in thousands): As of and for the Three Months Ended December 31, 2016 2015 Beginning balance $ 349 $ 312 Accruals during the period 126 56 Changes in estimates of prior period warranty accruals 18 17 Warranty amortization (75 ) (18 ) Ending balance $ 418 $ 367 As of and for the Six Months Ended December 31, 2016 2015 Beginning balance $ 365 $ 261 Accruals during the period 227 151 Changes in estimates of prior period warranty accruals (13 ) 27 Warranty amortization (161 ) (72 ) Ending balance $ 418 $ 367

NET INCOME (LOSS) PER SHARE (Ta

NET INCOME (LOSS) PER SHARE (Tables)	6 Months Ended
	Dec. 31, 2016
Basic net income per share:
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 December 31, Six Months Ended December 31, 2016 2015 2016 2015 Basic: Income from continuing operations $ 3,135 $ 481 $ 3,422 $ 408 Weighted average shares outstanding 4,057 4,143 4,060 4,142 Basic income per share from continuing operations $ 0.77 $ 0.11 $ 0.84 $ 0.10 Income (loss) from discontinued operations $ 59 $ (90 ) $ 58 $ (143 ) Weighted average shares outstanding 4,057 4,143 4,060 4,142 Basic and diluted earnings (loss) per share from discontinued operations $ 0.02 $ (0.02 ) $ 0.01 $ (0.04 ) Net income $ 3,194 $ 391 $ 3,480 $ 265 Weighted average shares outstanding 4,057 4,143 4,060 4,142 Basic income per share $ 0.79 $ 0.09 $ 0.85 $ 0.06 Diluted: Income from continuing operations $ 3,135 $ 481 $ 3,422 $ 408 Weighted average shares outstanding 4,057 4,143 4,060 4,142 Effect of dilutive securities – stock options 35 22 38 19 Weighted average shares used in calculation of diluted earnings per share 4,092 4,165 4,098 4,161 Diluted loss per share from continuing operations $ 0.77 $ 0.11 $ 0.84 $ 0.10 Income (loss) from discontinued operations $ 59 $ (90 ) $ 58 $ (143 ) Weighted average shares outstanding 4,092 4,165 4,098 4,161 Diluted earnings (loss) per share from discontinued operations $ 0.01 $ (0.02 ) $ 0.01 $ (0.04 ) Net income $ 3,194 $ 391 $ 3,480 $ 265 Weighted average shares outstanding 4,092 4,165 4,098 4,161 Diluted income per share $ 0.78 $ 0.09 $ 0.85 $ 0.06

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
	Dec. 31, 2016
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, 2016 $ 446 Additions based on tax positions related to the current year 13 Additions for tax positions of prior years — Balance at December 31, 2016 $ 459

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	6 Months Ended
	Dec. 31, 2016
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, 2016 and 2015: 2016 2015 Number of Weighted-Average Number of Weighted-Average Outstanding at July 1, 90,834 $ 1.95 106,668 $ 2.41 Options granted — — — — Options exercised (28,000 ) 1.82 (7,500 ) 2.14 Options forfeited — — — — Outstanding at end of period 62,834 $ 2.00 99,168 $ 2.43 Stock Options Exercisable at December 31, 62,834 $ 2.00 99,168 $ 2.43
Schedule of options outstanding and options exercisable	Following is a summary of information regarding options outstanding and options exercisable at December 31, 2016: Options Outstanding & Exercisable Range of Number Outstanding Weighted-Avg. Weighted- Aggregate. Intrinsic $0 to 2.50 59,500 4.66 $ 1.87 $ 168,320 2.5 to 5.00 3,334 0.38 4.38 $ 1,067 Total 62,834 4.43years $ 2.00 $ 169,387

MAJOR CUSTOMERS & SUPPLIERS (Ta

MAJOR CUSTOMERS & SUPPLIERS (Tables)	6 Months Ended
	Dec. 31, 2016
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, 2016 and 2015, is as follows (in thousands, except percentages): Three Months Ended December 31, 2016 2015 Amount Percent of Amount Percent of Total sales $ 4,599 100 % $ 5,231 100 % Customer concentration: Customer 1 $ 2,487 54 % $ 1,311 25 % Customer 2 496 11 % 1,213 23 % Customer 3 271 6 % 1,169 22 % Total $ 3,254 71 % $ 3,693 70 % Six Months Ended December 31, 2016 2015 Amount Percent of Amount Percent of Total sales $ 9,728 100 % $ 9,023 100 % Customer concentration: Customer 1 4,648 48 % 2,421 27 % Customer 3 878 9 % 1,795 20 % Customer 2 758 8 % 1,229 13 % Customer 4 458 4 % 1,004 11 % Total $ 6,742 69 % $ 6,449 71 %
Schedule of accounts receivable from those customers whom comprised more than 10 % of gross accounts receivable	Information with respect to accounts receivable from those customers whom comprised more than 10 % of our gross accounts receivable at either December 31, 2016 or June 30, 2016, is as follows (in thousands, except percentages): December 31, 2016 June 30, 2016 Total gross accounts receivable, including amounts due from factor $ 3,460 100 % $ 2,908 100 % Customer concentration: Customer 1 $ 2,044 59 % $ 850 29 % Customer 2 492 14 % 573 20 % Customer 5 361 11 % 337 12 % Total $ 2,897 84 % $ 1,760 61 %
Schedule of suppliers accounted for purchases in excess	Information with respect to suppliers that accounted for purchases in excess of 10% of our total purchases either of three-month and the six-month periods ended December 31, 2016 and 2015, is as follows (in thousands, except percentages): Three Months Ended December 31, 2016 2015 Amount Percent of Total Amount Percent of Total Total purchases $ 2,887 100 % $ 2,713 100 % Supplier concentration: Supplier 1 $ 294 10 % $ 240 9 % Six Months Ended December 31, 2016 2015 Amount Percent of Total Amount Percent of Total Total purchases $ 6,285 100 % $ 5,380 100 % Supplier concentration: Supplier 1 $ 515 8 % $ 693 13 % Supplier 2 725 12 % 305 6 % Total $ 1,240 20 % $ 998 19 %

BASIS OF PRESENTATION (Details

BASIS OF PRESENTATION (Details Narrative) $ in Thousands	Jun. 30, 2016USD ($)
Accrued Liabilities [Member]
Deferred rent, current portion	$ 79

ASSETS HELD FOR SALE (Details)

ASSETS HELD FOR SALE (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Jun. 30, 2016
Assets held for sale:
Inventory	$ 242	$ 209
Fixed assets	57	64
Prepaid expenses	2	5
Other assets	9	9
Assets held for sale	$ 310	$ 287

ASSETS HELD FOR SALE (Details 1

ASSETS HELD FOR SALE (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Notes to Financial Statements
Revenues	$ 381	$ 208	$ 664	$ 512
Income (loss) from discontinued operations:
Income (loss) from discontinued operations, before taxes	97	(90)	96	(143)
Income tax expense	38		38
Net income (loss) from discontinued operations	$ 59	$ (90)	$ 58	$ (143)

ASSETS HELD FOR SALE (Details N

ASSETS HELD FOR SALE (Details Narrative) $ in Thousands	Jan. 27, 2017USD ($)
Subsequent Event [Member] | Oregon Micro Systems ("OMS") [Member] | OREGON [Member]
Aggregate sales price received	$ 640

COMPOSITION OF CERTAIN FINANC34

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Raw materials /purchased components	$ 1,252	$ 1,462
Work in process	813	818
Sub-assemblies /finished components	1,001	1,010
Finished goods	206	74
Total inventory	$ 3,272	$ 3,364

COMPOSITION OF CERTAIN FINANC35

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Details 1) - USD ($) $ in Thousands	Dec. 31, 2016	Jun. 30, 2016	Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Marketable equity securities	$ 291

COMPOSITION OF CERTAIN FINANC36

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Details 2) - USD ($) $ in Thousands	Dec. 31, 2016	Jun. 30, 2016
Finite-Lived Intangible Assets [Line Items]
Total intangibles	$ 409	$ 612
Less accumulated amortization	(78)	(161)
Intangible assets,net	331	451
Capitalized Software Development Costs [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangibles		73
Covenant Not To Compete [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangibles	52	52
Trade Name [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangibles	50	50
Customer List and Backlog [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangibles	167	316
Patent-Related Costs [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangibles	$ 140	$ 121

COMPOSITION OF CERTAIN FINANC37

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Details Narrative) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Sep. 30, 2016	Dec. 31, 2016
Aggregate cost		$ 300
Gross unrealized losses		9
Income taxes		$ 3
Covenant Not To Compete [Member] | Maximum [Member]
Useful life	10 years
Customer List and Backlog [Member] | Huber Precision [Member]
Impairment charge	$ 113
Customer List and Backlog [Member] | Maximum [Member]
Useful life	10 years

DUE FROM FACTOR (Details Narrat

DUE FROM FACTOR (Details Narrative) - USD ($) $ in Thousands	Sep. 09, 2015	Dec. 31, 2016	Dec. 31, 2016	Dec. 31, 2015	Jun. 30, 2016
Short-term Debt [Line Items]
Due from factor		$ 2,409	$ 2,409		$ 1,419
Proceeds from short term debt			600	$ 1,600
Loan and Security Agreement ("Summit Loan") [Member] | Summit Financial Resources LP, (the "Factor") [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		2,400	2,400
Proceeds from short term debt		$ 200	$ 600
Interest rate	5.75%

WARRANTY (Details)

WARRANTY (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Beginning balance	$ 349	$ 312	$ 365	$ 261
Accruals during the period	126	56	227	151
Changes in estimates of prior period warranty accruals	18	17	(13)	27
Warranty amortization	(75)	(18)	(161)	(72)
Ending balance	$ 418	$ 367	$ 418	$ 367

WARRANTY (Details Narrative)

WARRANTY (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016	Jun. 30, 2016	Sep. 30, 2015	Jun. 30, 2015
Product Warranties Disclosures [Abstract]
Warranty reserves	$ 418	$ 367	$ 418	$ 367	$ 349	$ 365	$ 312	$ 261
Warranty expense	$ 144	$ 73	$ 214	$ 178

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, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Basic:
Income from continuing operations	$ 3,135	$ 481	$ 3,422	$ 408
Weighted average shares outstanding	4,057	4,143	4,060	4,142
Basic income per share from continuing operations	$ 0.77	$ 0.11	$ 0.84	$ 0.1
Income (loss) from discontinued operations	$ 59	$ (90)	$ 58	$ (143)
Weighted average shares outstanding	4,057	4,143	4,060	4,142
Basic and diluted earnings (loss) per share from discontinued operations (in dollars per share)	$ 0.02	$ (0.02)	$ 0.01	$ (0.04)
Net income	$ 3,194	$ 391	$ 3,480	$ 265
Basic income per share (in dollars per share)	$ 0.79	$ 0.09	$ 0.85	$ 0.06
Diluted:
Income from continuing operations	$ 3,135	$ 481	$ 3,422	$ 408
Weighted average shares outstanding	4,057	4,143	4,060	4,142
Effect of dilutive securities - stock options	35	22	38	19
Diluted loss per share from continuing operations	$ 0.77	$ 0.11	$ 0.84	$ 0.1
Income (loss) from discontinued operations	$ 59	$ (90)	$ 58	$ (143)
Diluted (in shares)	4,092	4,165	4,098	4,161
Diluted earnings (loss) per share from discontinued operations (in dollars per share)	$ 0.01	$ (0.02)	$ 0.01	$ (0.04)
Net income	$ 3,194	$ 391	$ 3,480	$ 265
Weighted average shares outstanding (in shares)	4,092	4,165	4,098	4,161
Diluted income per share (in dollars per share)	$ 0.78	$ 0.09	$ 0.85	$ 0.06

INVESTMENT IN RAMSEY PROPERTY42

INVESTMENT IN RAMSEY PROPERTY AND RELATED NOTES RECEIVABLE (Details Narrative) - USD ($) $ in Thousands	Nov. 30, 2014	Dec. 31, 2015	Dec. 31, 2015	Jun. 30, 2015	Mar. 31, 2015
Riverside Manufacturing Inc [Member] | Revolving Credit Facility [Member]
Revolving loan agreement aggregate amount					$ 200
Revolving loan modification agreement aggregate amount				$ 300
Purchase of Investment in Ramsey property and related notes receivable			$ 86
Proceeds from liquidation of Ramsey assets		$ 277
Two Promissory Notes (Loan Purchase and Sale Agreement) [Member]
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).

INCOME TAXES (Details)

INCOME TAXES (Details) $ in Thousands	6 Months Ended
	Dec. 31, 2016USD ($)
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Beginning balance	$ 446
Additions based on tax positions related to the current year	13
Additions for tax positions of prior years
Ending balance	$ 459

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2016	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Deferred tax assets, valuation allowance	$ 3,800
Unrecognized tax benefits	$ 459	$ 446

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details) - $ / shares	6 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at beginning of period	90,834	106,668
Options granted
Options exercised	(28,000)	(7,500)
Options forfeited
Outstanding at end of period	62,834	99,168
Stock Options Exercisable at end of period	62,834	99,168
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding at beginning of period	$ 1.95	$ 2.41
Options granted
Options exercised	1.82	2.14
Options forfeited
Outstanding at end of period	2	2.43
Stock Options Exercisable at end of period	$ 2	$ 2.43

SHARE-BASED COMPENSATION (Det46

SHARE-BASED COMPENSATION (Details 1) $ / shares in Units, $ in Thousands	6 Months Ended
	Dec. 31, 2016USD ($)$ / sharesshares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number Outstanding | shares	62,834
Weighted-Average Remaining Contractual Life	4 years 5 months 5 days
Weighted-Average Exercise Price | $ / shares	$ 2
Aggregate Intrinsic Value | $	$ 169,387
Number Outstanding | shares	62,834
Weighted-Average Remaining Contractual Life	4 years 5 months 5 days
Weighted-Average Exercise Price | $ / shares	$ 2
Aggregate Intrinsic Value | $	$ 169,387
$0 to $2.50 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number Outstanding | shares	59,500
Weighted-Average Remaining Contractual Life	4 years 7 months 28 days
Weighted-Average Exercise Price | $ / shares	$ 1.87
Aggregate Intrinsic Value | $	$ 168,320
Number Outstanding | shares	59,500
Weighted-Average Remaining Contractual Life	4 years 7 months 28 days
Weighted-Average Exercise Price | $ / shares	$ 1.87
Aggregate Intrinsic Value | $	$ 168,320
$2.5 to $5.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number Outstanding | shares	3,334
Weighted-Average Remaining Contractual Life	4 months 17 days
Weighted-Average Exercise Price | $ / shares	$ 4.38
Aggregate Intrinsic Value | $	$ 1,067
Number Outstanding | shares	3,334
Weighted-Average Remaining Contractual Life	4 months 17 days
Weighted-Average Exercise Price | $ / shares	$ 4.38
Aggregate Intrinsic Value | $	$ 1,067

SHARE-BASED COMPENSATION (Det47

SHARE-BASED COMPENSATION (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended				6 Months Ended
	Dec. 31, 2014	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2016	Dec. 31, 2015	Nov. 29, 2016	Sep. 30, 2014	Jun. 30, 2014
Allocated share-based compensation expense		$ 0		$ 0		$ 0	$ 2
Employees Stock Option Plan [Member]
Number of shares reserved for future issuance										531,381
Directors Stock Option Plan [Member]
Number of shares reserved for future issuance									173,334
ESPP [Member]
Number of shares options purchased (in shares)						7,652
Allocated share-based compensation expense		$ 0		$ 0		$ 2	$ 1
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)			2,056		1,925
Exercise price (in dollars per share)			$ 4.91		$ 2.34
2016 Equity Incentive Plan [Member]
Number of shares awarded								1,500,000

MAJOR CUSTOMERS & SUPPLIERS (De

MAJOR CUSTOMERS & SUPPLIERS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Jun. 30, 2016
Concentration Risk [Line Items]
Total sales	$ 4,599	$ 5,231	$ 9,728	$ 9,023
Sales [Member]
Concentration Risk [Line Items]
Total sales	$ 4,599	$ 5,231	$ 9,728	$ 9,023
Percentage of concentrations risk	100.00%	100.00%	100.00%	100.00%
Sales [Member] | Customer [Member]
Concentration Risk [Line Items]
Total sales	$ 3,254	$ 3,693	$ 6,742	$ 6,449
Percentage of concentrations risk	71.00%	70.00%	69.00%	71.00%
Sales [Member] | Customer 1 [Member]
Concentration Risk [Line Items]
Total sales	$ 2,487	$ 1,311	$ 4,648	$ 2,421
Percentage of concentrations risk	54.00%	25.00%	48.00%	27.00%
Sales [Member] | Customer 2 [Member]
Concentration Risk [Line Items]
Total sales	$ 496	$ 1,213	$ 758	$ 1,229
Percentage of concentrations risk	11.00%	23.00%	8.00%	13.00%
Sales [Member] | Customer 3 [Member]
Concentration Risk [Line Items]
Total sales	$ 271	$ 1,169	$ 878	$ 1,795
Percentage of concentrations risk	6.00%	22.00%	9.00%	20.00%
Sales [Member] | Customer 4 [Member]
Concentration Risk [Line Items]
Total sales			$ 458	$ 1,004
Percentage of concentrations risk			4.00%	11.00%
Accounts Receivable [Member]
Concentration Risk [Line Items]
Total gross accounts receivable, including amounts due from factor	$ 3,460		$ 3,460		$ 2,908
Percentage of concentrations risk			100.00%		100.00%
Accounts Receivable [Member] | Customer [Member]
Concentration Risk [Line Items]
Total sales			$ 2,897		$ 1,760
Percentage of concentrations risk			84.00%		61.00%
Accounts Receivable [Member] | Customer 1 [Member]
Concentration Risk [Line Items]
Total sales			$ 2,044		$ 850
Percentage of concentrations risk			59.00%		29.00%
Accounts Receivable [Member] | Customer 2 [Member]
Concentration Risk [Line Items]
Total sales			$ 492		$ 573
Percentage of concentrations risk			14.00%		20.00%
Accounts Receivable [Member] | Customer 5 [Member]
Concentration Risk [Line Items]
Total sales			$ 361		$ 337
Percentage of concentrations risk			11.00%		12.00%

MAJOR CUSTOMERS & SUPPLIERS (49

MAJOR CUSTOMERS & SUPPLIERS (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Jun. 30, 2016
Supplier 1 [Member]
Concentration Risk [Line Items]
Percentage of concentration risk			6.00%		6.00%
Supplier 2 [Member]
Concentration Risk [Line Items]
Percentage of concentration risk			4.00%		4.00%
Purchase [Member]
Concentration Risk [Line Items]
Total purchases	$ 2,887	$ 2,713	$ 6,285	$ 5,380
Percentage of concentration risk	100.00%	100.00%	100.00%	100.00%
Purchase [Member] | Supplier [Member]
Concentration Risk [Line Items]
Total purchases			$ 1,240	$ 998
Percentage of concentration risk			20.00%	19.00%
Purchase [Member] | Supplier 1 [Member]
Concentration Risk [Line Items]
Total purchases	$ 294	$ 240	$ 515	$ 693
Percentage of concentration risk	10.00%	9.00%	8.00%	13.00%
Purchase [Member] | Supplier 2 [Member]
Concentration Risk [Line Items]
Total purchases			$ 725	$ 305
Percentage of concentration risk			12.00%	6.00%

MAJOR CUSTOMERS & SUPPLIERS (50

MAJOR CUSTOMERS & SUPPLIERS (Details Narrative)	6 Months Ended	12 Months Ended
	Dec. 31, 2016	Jun. 30, 2016
Supplier 1 [Member]
Concentration Risk [Line Items]
Percentage of concentration risk	6.00%	6.00%
Supplier 2 [Member]
Concentration Risk [Line Items]
Percentage of concentration risk	4.00%	4.00%

NOTES PAYABLE AND FINANCING T51

NOTES PAYABLE AND FINANCING TRANSACTIONS (Details Narrative) - USD ($) $ in Thousands	Jul. 21, 2016	Sep. 09, 2015	Sep. 08, 2015	Feb. 01, 2015	Dec. 31, 2016	Dec. 31, 2016	Dec. 31, 2015	Jun. 30, 2016
Proceeds from notes payable							$ 500
Borrowed from Summit loan						600	$ 1,600
Capital lease obligations					$ 31	31
Fineline Molds [Member]
Debt instrument, face amount				$ 100
Promissory note payment terms				Sixteen equal quarterly payments.
Interest rate				4.00%
Promissory note payment of principal and accrued interest				$ 6,794
Note payable balance					58	$ 58		$ 70
Fortitude Income Funds, LLC [Member]
Proceeds from notes payable			$ 500
Description of interest rate						The loan bore interest at 12 percent per annum.
Debt instrument, origination fee					15	$ 15
Debt instrument, maturity date						Mar. 15, 2016
Jules And Associates, Inc [Member] | Master Equipment Lease Agreement [Member]
Interim rent	$ 7,388
Cost of equipment					106	$ 106
Amount of payment					3,121	3,121
Duration of lease payment	36 months
Capital lease obligations					89	89
Loan and Security Agreement ("Summit Loan") [Member] | Summit Financial Resources LP, (the "Factor") [Member]
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
Borrowed from Summit loan					$ 200	$ 600
Interest rate		5.75%

SHARE REPURCHASE PROGRAM (Detai

SHARE REPURCHASE PROGRAM (Details Narrative) - Share Repurchase Program [Member] - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016	Sep. 30, 2013
Number of shares to authorized			750,000
10b5-1 Plan [Member]
Number of shares repurchased	26,668	9,107
Number of shares amount	$ 119	$ 49
Total number of repurchase shares	205,236
Total number of shares amount	$ 777

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Narrative) $ in Thousands	1 Months Ended
	Oct. 31, 2016USD ($)
Riverside and Heron Enterprises, LLC [Member] | Scott Robertson [Member]
Amount of loss contingency	$ 250

SUBSEQUENT EVENT (Details Narra

SUBSEQUENT EVENT (Details Narrative) - Subsequent Event [Member] - Oregon Micro Systems ("OMS") [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Jan. 27, 2017
Sale Agreement [Member]
Gain on sale of the division	$ 300
OREGON [Member]
Aggregate sales price received		$ 640