Pro-Dex (PDEX) 10-Q 9 Nov 17 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2017	Nov. 03, 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	Sep. 30, 2017
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		4,360,481
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,018

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017
Current Assets:
Cash and cash equivalents	$ 5,855	$ 4,205
Investments	885	718
Accounts receivable, net of allowance for doubtful accounts of $3 at September 30, 2017 and at June 30, 2017	2,254	3,538
Deferred costs		12
Other current assets	24	86
Inventory	3,512	3,085
Notes receivable	1,150
Prepaid expenses	108	277
Total current assets	13,788	11,921
Equipment and leasehold improvements, net	1,427	1,429
Goodwill	112	112
Intangibles, net	316	320
Deferred income taxes, net	2,003	2,048
Notes receivable	450	450
Other assets	71	71
Total assets	18,167	16,351
Current Liabilities:
Accounts payable	943	1,159
Accrued expenses	763	1,344
Deferred revenue	18	19
Note payable	26	26
Income taxes payable	10
Capital lease obligations	33	32
Total current liabilities	1,793	2,580
Deferred rent, net of current portion	53
Notes and capital leases payable, net of current portion	46	61
Total non-current liabilities	99	61
Total liabilities	1,892	2,641
Shareholders' equity:
Common shares; no par value; 50,000,000 shares authorized; 4,348,292 and 4,025,193 shares issued and outstanding at September 30, 2017 and June 30, 2017, respectively	19,750	17,704
Accumulated other comprehensive income (loss)	(76)	33
Accumulated deficit	(3,399)	(4,027)
Total shareholders' equity	16,275	13,710
Total liabilities and shareholders' equity	$ 18,167	$ 16,351

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 3	$ 3
Common shares, no par value (in dollars per share)	$ 0	$ 0
Common shares, authorized	50,000,000	50,000,000
Common shares, issued	4,348,292	4,025,193
Common shares, outstanding	4,348,292	4,025,193

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Net sales	$ 5,162	$ 5,129
Cost of sales	3,302	3,705
Gross profit	1,860	1,424
Operating expenses:
Selling expenses	87	149
General and administrative expenses	504	564
Impairment of intangible assets		113
Research and development costs	407	304
Total operating expenses	998	1,130
Operating income	862	294
Other income (expense):
Interest and miscellaneous income	30	3
Interest expense	(2)	(3)
Total other income (expense)	28
Income before income taxes	890	294
Provision for income taxes	262	7
Net income from continuing operations	628	287
Net loss from discontinued operations net of tax of $0		(1)
Net income	628	286
Other comprehensive loss, net of tax:
Unrealized loss from marketable equity investments, net of taxes	(109)
Comprehensive income	$ 519	$ 286
Basic and diluted income per share:
Net income from continuing operations	$ 0.15	$ 0.07
Net income from discontinued operations
Net income	$ 0.15	$ 0.07
Weighted average common shares outstanding:
Basic	4,150,099	4,062,475
Diluted	4,189,724	4,103,459
Common shares outstanding	4,348,292	4,063,837

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Parenthetical) $ in Thousands	3 Months Ended
	Sep. 30, 2017USD ($)
Income Statement [Abstract]
Net loss from discontinued operations net of tax	$ 0

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 628	$ 286
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	153	139
Share-based compensation	3	2
Impairment of intangible assets		113
Gain on disposal of equipment	(12)	(3)
Deferred income tax	45
Bad debt expense (recovery)		(18)
Changes in operating assets and liabilities:
Accounts receivable and other receivables	1,284	(683)
Deferred costs	12	(255)
Inventory	(427)	203
Prepaid expenses and other assets	89	27
Accounts payable, accrued expenses and deferred rent	(744)	338
Deferred revenue	(1)	107
Income taxes payable	10	(1)
Net cash provided by operating activities	1,040	255
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of equipment	(139)	(316)
Purchases of investments	(297)
Income tax effect of unrealized gains and losses	21
Increase in notes receivable	(1,150)
Increase in intangibles	(8)	(13)
Proceeds from disposal of equipment	12	3
Net cash used in investing activities	(1,561)	(326)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on capital lease and notes payable	(14)	(16)
Borrowings from Summit Loan		400
Repayments on Summit Loan		(400)
Proceeds from shares issued under ATM, net of commissions and fees	2,169
Proceeds from ESPP Contributions	16	10
Repurchases of common stock		(49)
Net cash provided by (used in) financing activities	2,171	(55)
Net increase (decrease) in cash and cash equivalents	1,650	(126)
Cash and cash equivalents, beginning of period	4,205	2,294
Cash and cash equivalents, end of period	5,855	2,168
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	2	3
Income taxes, net of refunds	$ 118	$ 19

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Sep. 30, 2017
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, 2017. 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, 2017. Recent Accounting Standards In May 2014, the 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. Application of the guidance in ASU 2014-09 is expected to require more judgment and estimates within the revenue recognition process compared to existing GAAP. ASU 2014-09 is required to be adopted by the Company in the first quarter of fiscal 2019. The Company expects to adopt the requirements of ASU 2014-09 using the modified retrospective adoption method. The Company also expects that disclosures related to revenue recognition including judgments made will increase compared to existing GAAP. The Company is currently evaluating the impact of the future adoption of ASU 2014-09 on its consolidated financial statements and does not currently expect significant changes in the timing of revenue recognition compared to existing GAAP. 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, we expect the adoption will lead to a material increase in the assets and liabilities recorded on our consolidated balance sheet. 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. In May 2017, the FASB issued Accounting Standards Update 2017-09, “Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting” (“ASU 2017-09”). The update provides guidance as to which changes to the terms or conditions of a share-based payment award should be accounted for as a modification under Topic 718. Specifically, an entity would not apply modification accounting if the fair value, vesting conditions, and classification of an award as an equity or liability instrument are the same immediately before and after the modification. The standard is effective for the Company for annual periods beginning after December 15, 2017. Early adoption is permitted and prospective application is required. The Company is currently evaluating the impact of the adoption of ASU 2017-09 on its consolidated financial statements. Reclassifications As described in more detail in Note 4 below, we sold our Oregon Micro Systems (“OMS”) division during the third quarter of fiscal 2017. This division has been classified as a discontinued operation in conformity with applicable accounting guidance. The related income statement reclassifications had no impact on our consolidated net income. Accordingly, unless otherwise indicated, OMS’s results have been reported as discontinued operations and removed from all financial discussions of continuing operations. We have also changed the allowance for doubtful accounts adjustment to reconcile net income to net cash provided by operating activities to bad debt expense (recovery) as prescribed by GAAP. This reclassification has no impact on net cash provided by or used in operating activities.

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	3 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS	NOTE 2. DESCRIPTION OF BUSINESS We specialize in the design and manufacture of powered surgical and dental instruments used primarily in the orthopedic, spine, maxocranial facial and dental markets. Our Fineline Molds division, acquired in fiscal 2015, manufactures plastic injection molding for a variety of industries. Pro-Dex’s products are found in hospitals, dental offices, and medical engineering labs around the world. Through January, 2017, through our OMS division, 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 4.) Through April, 2017, we provided engineering consulting and placement services, as well as quality and regulatory consulting services through our Engineering Services Division. Although we continue to provide engineering, quality and regulatory consulting services to our customers, we have ceased placement services and accordingly have disbanded our Engineering Services Division. The cessation of placement services is not expected to have a material impact on our financial position or results of operations. In fiscal 2015, we acquired Huber Precision (“Huber”), a business that made custom machined parts. We made the investment to garner a wider customer base, but the sales to the customers that were serviced by Huber dwindled over time, such that activities have become immaterial. As a result, the intangibles relating to Huber were impaired during the first quarter of fiscal 2017.

COMPOSITION OF CERTAIN FINANCIA

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS	3 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS	NOTE 3. COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS Investments Investments are stated at market value and consist of the following (in thousands): September 30, June 30, 2017 Marketable equity securities $ 885 $ 718 Investments at September 30, 2017 and June 30, 2017 had an aggregate cost basis of $961,000 and $663,000 respectively. During the quarter ended September 30, 2017 the investments incurred gross unrealized losses of $131,000 and related income tax benefit of approximately $22,000 recorded in other comprehensive income. At June 30, 2017 the investments included net unrealized gains of $55,000 (unrealized gains of $57,000 offset by unrealized losses of $2,000) and related tax expense of approximately $22,000 recorded in other comprehensive income. Inventory Inventory is stated at the lower of cost (first-in, first-out) or market and consists of the following (in thousands): September 30, 2017 June 30, 2017 Raw materials /purchased components $ 1,275 $ 1,127 Work in process 960 747 Sub-assemblies /finished components 1,114 1,018 Finished goods 163 193 Total inventory $ 3,512 $ 3,085 Intangibles Intangibles consist of the following (in thousands): September 30, 2017 June 30, 2017 Covenant not to compete $ 52 $ 52 Trade name 50 50 Customer list and backlog 167 167 Patent-related costs 161 153 Total intangibles $ 430 $ 422 Less accumulated amortization (114 ) (102 ) $ 316 $ 320 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. 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.

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS	3 Months Ended
	Sep. 30, 2017
Discontinued Operations and Disposal Groups [Abstract]
DISCONTINUED OPERATIONS	NOTE 4. DISCONTINUED OPERATIONS 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 our Form 8-K filed with the SEC on January 30, 2017. The aggregate sales price received was $636,000, 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. Accordingly, unless otherwise indicated, OMS’s results have been reported as discontinued operations and removed from all financial discussions of continuing operations. Operating results of the OMS division are as follows (in thousands): September 30, 2016 Revenues $ 283 Loss from discontinued operations: Loss from discontinued operations, before taxes (1 ) Income tax (expense) benefit — Net loss from discontinued operations $ (1 ) The divestiture was completed in support of raising capital to invest in our core medical device product development efforts. The loss from discontinued operations consisted 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 were 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.

WARRANTY

WARRANTY	3 Months Ended
	Sep. 30, 2017
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 September 30, 2017 and June 30, 2017, the warranty reserve amounted to $146,000 and $159,000, 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. Information regarding the accrual for warranty costs for the three months ended September 30, 2017 and 2016 are as follows (in thousands): As of and for the Three Months Ended 2017 2016 Beginning balance $ 159 $ 365 Accruals during the period 20 101 Changes in estimates of prior period warranty accruals (20 ) (44 ) Warranty amortization (13 ) (73 ) Ending balance $ 146 $ 349

NET INCOME (LOSS) PER SHARE

NET INCOME (LOSS) PER SHARE	3 Months Ended
	Sep. 30, 2017
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. Diluted income (loss) per share reflects the effects of potentially dilutive securities, which consist entirely of outstanding stock options. As the loss from discontinued operations is negligible for the three months ended September 30, 2016, and generates no loss per share, it is excluded from the table below. The following table presents reconciliations of the numerators and denominators of the basic and diluted income (loss) per share computations. 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 2017 2016 Basic: Net income $ 628 $ 286 Weighted average shares outstanding 4,150 4,062 Basic earnings per share $ 0.15 $ 0.07 Diluted: Net income $ 628 $ 286 Weighted average shares outstanding 4,150 4,062 Effect of dilutive securities – stock options 40 41 Weighted average shares used in calculation of diluted earnings per share 4,190 4,103 Diluted earnings per share $ 0.15 $ 0.07

INCOME TAXES

INCOME TAXES	3 Months Ended
	Sep. 30, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 7. INCOME TAXES Deferred income taxes are provided on a liability method whereby deferred tax assets and liabilities are recognized for temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax 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. As of September 30, 2017, we have accrued $450,000 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, 2017 $ 446 Additions based on tax positions related to the current year 4 Balance at September 30, 2017 $ 450 We recognize accrued interest and penalties related to unrecognized tax benefits when applicable. As of September 30, 2017 and June 30, 2017, 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. The Company 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, 2014 and later. Our state income tax returns are open to audit under the statute of limitations for the years ended June 30, 2013 and later. However, because of net operating losses and research credit carryovers, substantially all of our tax years are subject to audit. We do not anticipate a significant change to the total amount of unrecognized tax benefits within the next 12 months.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	3 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
SHARE-BASED COMPENSATION	NOTE 8. 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 attributable to the Former Stock Option Plans for the three months ended September 30, 2017 and 2016, as all outstanding options under the Former Stock Option Plans are fully vested. The Employee Stock Option Plan and Director’s Stock Option Plan were terminated in June 2015 and September 2014, respectively. 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 September 30, 2017, no awards have been granted under the 2016 Equity Incentive Plan. Stock Options There were no stock options granted during the three months ended September 30, 2017 and 2016. As of September 30, 2017, there was no unrecognized compensation cost under our stock option plans as all outstanding stock options are fully vested. As of September 30, 2017, the options outstanding had a weighted average remaining contractual life of 3.8 years and an intrinsic value of $306,000. The following is a summary of stock option activity for the three months ended September 30, 2017 and 2016: Three Months Ended September 30, 2017 2016 Number of Shares Weighted-Average Exercise Price Number of Shares Weighted-Average Exercise Price Outstanding at beginning of period 57,000 $ 1.88 90,834 $ 1.95 Options granted — — — — Options exercised — — (25,000 ) (1.79 ) Options canceled or expired — — — — Outstanding at end of period 57,000 $ 1.88 65,834 $ 2.01 Stock Options Exercisable at September 30, 57,000 $ 1.88 65,834 $ 2.01 Employee Stock Purchase Plan In September 2014, our Board approved the establishment of an Employee Stock Purchase Plan (the “ESPP”). The ESPP conforms to the provisions of Section 423 of the Internal Revenue Code, has coterminous offering and purchase periods of six months, and bases the pricing to purchase shares of our common stock on a formula so as to result in a per-share purchase price that approximates a 15% discount from the market price of a share of our common stock at the end of the purchase period. 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, aggregating 704,715 shares, be reserved for issuance pursuant to the ESPP. The ESPP was approved by our shareholders at the December 3, 2014 Annual Meeting. On February 2, 2015, the Company filed a Registration Statement on Form S-8 registering the 704,715 shares issuable under the ESPP under the Securities Act of 1933. During the first quarter ended September 30, 2017 and 2016, 3,099 and 2,056 shares were purchased, respectively, and allocated to employees based upon their contributions at prices of $5.21 and $4.91, respectively, per share. On a cumulative basis, since the inception of the ESPP plan, employees have purchased a total of 12,489 shares. During the three months ended September 30, 2017 and 2016, we recorded stock compensation expense in the amount of $3,000 and $2,000, respectively, relating to the ESPP.

MAJOR CUSTOMERS & SUPPLIERS

MAJOR CUSTOMERS & SUPPLIERS	3 Months Ended
	Sep. 30, 2017
Risks and Uncertainties [Abstract]
MAJOR CUSTOMERS & SUPPLIERS	NOTE 9. MAJOR CUSTOMERS & SUPPLIERS Information with respect to customers that accounted for sales in excess of 10% of our total sales in either of the three-month periods ended September 30, 2017 and 2016 is as follows (in thousands, except percentages): Three Months Ended September 30, 2017 2016 Amount Percent of Total Amount Percent of Total Total revenue $ 5,162 100 % $ 5,129 100 % Customer concentration: Customer 1 $ 3,026 59 % $ 2,161 42 % Customer 2 618 12 % 421 8 % Customer 3 184 3 % 608 12 % Total $ 3,828 74 % $ 3,190 62 % Information with respect to accounts receivable from those customers that comprised more than 10 % of our gross accounts receivable at either September 30, 2017 and June 30, 2017, is as follows (in thousands, except percentages): September 30, June 30, Total gross accounts receivable $ 2,257 100 % $ 3,541 100 % Customer concentration: Customer 1 $ 1,360 60 % $ 2,187 62 % Customer 4 131 6 % 554 16 % Customer 5 353 16 % 235 6 % Total. $ 1,844 82 % $ 2,976 84 % We had one different supplier during each of the three months ended September 30, 2017 and 2016 that accounted for 13% and 16% of total purchases, respectively. Amounts owed to the fiscal 2018 significant supplier at September 30, 2017 and June 30, 2017 represented 5% and 12%, respectively, of total accounts payable.

NOTES RECEIVABLE

NOTES RECEIVABLE	3 Months Ended
	Sep. 30, 2017
Notes, Loans and Financing Receivable, Net, Noncurrent [Abstract]
NOTES RECEIVABLE	NOTE 10. NOTES RECEIVABLE Monogram note receivable – long-term On April 19, 2017, we entered into a Secured Convertible Promissory Note (the “Promissory Note”) with Monogram Orthopaedics Inc. (“Monogram”). Monogram is a New York based medical device start-up specializing in precision, patient-specific orthopedic implants. Pursuant to the terms of the Promissory Note, on April 19, 2017, we advanced Monogram $450,000 and upon Monogram’s satisfaction of certain milestones, as determined by us in good faith, we will advance an additional $350,000. The Promissory Note bears interest at 4% per annum calculated on a 360-day year and matures on April 19, 2019, upon which the outstanding principal and accrued interest will become due and payable if not converted to Monogram’s common stock. As of the date of this report, Monogram is still completing certain milestones and we have agreed to extend the original three-month milestone completion date. We currently expect to advance the additional $350,000 within the next 60 days. Loan Participation note receivable – short-term On September 20, 2017 (the “Closing Date”), we entered into a Participation Agreement with FS Special Opportunities I, L.P., a Minnesota limited partnership (“Principal”), pursuant to which we paid Principal $1,150,000 in cash to purchase a 50% (“Participation Percentage”) undivided interest (the “Participation”) in Principal’s $2,300,000 loan (the “Loan”) to 414 New York LLC, a New York limited liability company (“Borrower”). The Participation constitutes the purchase by us of a property interest in the Loan from Principal and does not create a creditor-debtor relationship between us and Borrower. Borrower used the proceeds from the Loan to acquire a leasehold interest in certain real estate operated as a hotel in Manhattan, New York. Pursuant to the loan agreement entered into on the Closing Date between Principal and Borrower, the Loan initially bears interest at a fixed rate of 22% per annum, with payments of all accrued and unpaid interest due monthly commencing on October 1, 2017 and on the first day of each month thereafter. Borrower may reduce the interest rate by 1% for each $100,000 repayment of principal up to a maximum reduction of 2%, thereby reducing the interest rate to a minimum amount equal to 20% per annum. If the principal balance of the Loan is not paid in full by September 30, 2018, commencing on October 1, 2018 and continuing on the first day of the next 83 months thereafter, Borrower shall, in addition to the aforementioned monthly interest payments, pay installments of principal equal to 1/84 th Raymond E. Cabillot, a director of the Company, is the managing partner of Farnam Street Capital, Inc. (“Farnam”) and Farnam is the founding partner of FS Special Opportunities I, L.P.

NOTES PAYABLE AND FINANCING TRA

NOTES PAYABLE AND FINANCING TRANSACTIONS	3 Months Ended
	Sep. 30, 2017
Notes Payable [Abstract]
NOTES PAYABLE AND FINANCING TRANSACTIONS	NOTE 11. NOTES PAYABLE AND FINANCING TRANSACTIONS Farmers & Merchants Bank of Long Beach On April 19, 2017 we entered into a Business Loan Agreement, dated effective March 28, 2017, with Farmers & Merchants Bank of Long Beach, a California corporation, providing for a $500,000 revolving loan facility (the “Revolving Loan Facility”). The Revolving Loan Facility is secured by substantially all of the assets of the Company and bears interest at prime plus 2 percent (6.25%) and matures on March 28, 2018. As of September 30, 2017, we have not borrowed against this Revolving Loan Facility. Summit Financial Resources LP On September 9, 2015 we entered into a Loan and Security Agreement (the “Summit Loan”) with Summit Financial Resources LP, whereby we could borrow up to $1.0 million against our eligible receivables, on a revolving basis, as defined in the agreement. Borrowed funds bore interest at a rate of prime plus 2 percent, and incurred an additional administrative fee of 0.7 percent on the monthly average outstanding balance. The Summit Loan had an initial period of 18 months with successive one-year renewal options and required an annual facility fee of $10,000. During the three months ended September 30, 2016 we borrowed $400,000 under the Summit Loan, which amount was paid in full by September 30, 2016. On March 9, 2017, we terminated the Summit Loan in accordance with its terms. 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 September 30, 2017 is approximately $66,000. Fineline Molds In conjunction with our acquisition 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. The balance owed on the note as of September 30, 2017 is approximately $39,000.

COMMON STOCK

COMMON STOCK	3 Months Ended
	Sep. 30, 2017
Stockholders' Equity Note [Abstract]
COMMON STOCK	NOTE 12. COMMON STOCK Share Repurchase Program In September, 2013 our Board approved a share repurchase program authorizing us 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 the adoption of several prearranged share repurchase plans intended to qualify for the safe harbor provided by Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (“10b5-1 Plan” or “Plan”). During the quarter ended September 30, 2016, our Board approved a 10b5-1 Plan, which became effective on September 8, 2016 and terminated on the earlier of September 8, 2017 or when and if the maximum shares were repurchased. During the quarter ended December 31, 2016, the Investment Committee of our Board approved an additional concurrently running 10b5-1 Plan, which became effective on December 8, 2016 and terminated on the earlier of December 8, 2017 or when and if the maximum shares were repurchased. On a cumulative basis, we have repurchased a total of 232,957 shares under the share repurchase program at an aggregate cost of $920,000. All repurchases under the 10b5-1 Plans were administered through an independent broker. In February, 2017 our Board terminated the two effective 10b5-1 Plans in conjunction with the approval of the Company’s At The Market Offering Agreement (“ATM” or “ATM Agreement”) further described below. At The Market Offering Agreement In February 2017, our Board approved an ATM Agreement with Ascendiant Capital Markets, LLC (“Ascendiant”). The ATM Agreement allows us to sell shares of our common stock pursuant to specific parameters defined by us as well as those defined by the SEC and the ATM Agreement. During the three months ended September 30, 2017 we sold 320,000 shares of common stock at an average price of $6.99 per share and raised proceeds of $2,169,000 net of commissions and fees paid to Ascendiant totaling $67,000. From the inception of the ATM in February 2017 through September 30, 2017 we have sold 328,276 shares of common stock for gross proceeds of $2,287,000 net of commissions and fees paid to Ascendiant totaling $69,000. The ATM allows for quick and agile sales of our common stock to interested investors and provides an opportunity to raise additional capital for working capital requirements or to fund strategic opportunities that may present themselves from time to time.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 13. 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 Manufacturing, Inc. (“Riverside”), a former investment held by the Company. 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 in turn asserted various claims, including slander of title, fraudulent misrepresentation, conversion and theft against one or more of those parties, in turn. In October 2016, the parties filed lawsuits against one another asserting the aforementioned claims. On February 8, 2017, a hearing was held on PDSL and PDR’s request for dismissal of several of Robertson et al.’s claims, which the court dismissed effective May 8, 2017. We proposed a mutual release of all claims to settle this dispute and the court held a hearing on October 6, 2017 to review the matter, as it was our position that Robertson et al. agreed to the settlement. At the hearing, the Court granted the motion to enforce the settlement agreement and all parties’ claims against one another were dismissed with prejudice. 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.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	3 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Recent Accounting Standards	Recent Accounting Standards In May 2014, the 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. Application of the guidance in ASU 2014-09 is expected to require more judgment and estimates within the revenue recognition process compared to existing GAAP. ASU 2014-09 is required to be adopted by the Company in the first quarter of fiscal 2019. The Company expects to adopt the requirements of ASU 2014-09 using the modified retrospective adoption method. The Company also expects that disclosures related to revenue recognition including judgments made will increase compared to existing GAAP. The Company is currently evaluating the impact of the future adoption of ASU 2014-09 on its consolidated financial statements and does not currently expect significant changes in the timing of revenue recognition compared to existing GAAP. 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, we expect the adoption will lead to a material increase in the assets and liabilities recorded on our consolidated balance sheet. 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. In May 2017, the FASB issued Accounting Standards Update 2017-09, “Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting” (“ASU 2017-09”). The update provides guidance as to which changes to the terms or conditions of a share-based payment award should be accounted for as a modification under Topic 718. Specifically, an entity would not apply modification accounting if the fair value, vesting conditions, and classification of an award as an equity or liability instrument are the same immediately before and after the modification. The standard is effective for the Company for annual periods beginning after December 15, 2017. Early adoption is permitted and prospective application is required. The Company is currently evaluating the impact of the adoption of ASU 2017-09 on its consolidated financial statements.
Reclassifications	Reclassifications As described in more detail in Note 4 below, we sold our Oregon Micro Systems (“OMS”) division during the third quarter of fiscal 2017. This division has been classified as a discontinued operation in conformity with applicable accounting guidance. The related income statement reclassifications had no impact on our consolidated net income. Accordingly, unless otherwise indicated, OMS’s results have been reported as discontinued operations and removed from all financial discussions of continuing operations. We have also changed the allowance for doubtful accounts adjustment to reconcile net income to net cash provided by operating activities to bad debt expense (recovery) as prescribed by GAAP. This reclassification has no impact on net cash provided by or used in operating activities.

COMPOSITION OF CERTAIN FINANC21

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Tables)	3 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of investments	Investments are stated at market value and consist of the following (in thousands): September 30, June 30, 2017 Marketable equity securities $ 885 $ 718
Schedule of inventory	Inventory is stated at the lower of cost (first-in, first-out) or market and consists of the following (in thousands): September 30, 2017 June 30, 2017 Raw materials /purchased components $ 1,275 $ 1,127 Work in process 960 747 Sub-assemblies /finished components 1,114 1,018 Finished goods 163 193 Total inventory $ 3,512 $ 3,085
Schedule of intangibles	Intangibles consist of the following (in thousands): September 30, 2017 June 30, 2017 Covenant not to compete $ 52 $ 52 Trade name 50 50 Customer list and backlog 167 167 Patent-related costs 161 153 Total intangibles $ 430 $ 422 Less accumulated amortization (114 ) (102 ) $ 316 $ 320

DISCONTINUED OPERATIONS (Tables

DISCONTINUED OPERATIONS (Tables)	3 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Schedule of operating results of the OMS division	Operating results of the OMS division are as follows (in thousands): September 30, 2016 Revenues $ 283 Loss from discontinued operations: Loss from discontinued operations, before taxes (1 ) Income tax (expense) benefit — Net loss from discontinued operations $ (1 )

WARRANTY (Tables)

WARRANTY (Tables)	3 Months Ended
	Sep. 30, 2017
Product Warranties Disclosures [Abstract]
Schedule of accrual warranty costs	Information regarding the accrual for warranty costs for the three months ended September 30, 2017 and 2016 are as follows (in thousands): As of and for the Three Months Ended 2017 2016 Beginning balance $ 159 $ 365 Accruals during the period 20 101 Changes in estimates of prior period warranty accruals (20 ) (44 ) Warranty amortization (13 ) (73 ) Ending balance $ 146 $ 349

NET INCOME (LOSS) PER SHARE (Ta

NET INCOME (LOSS) PER SHARE (Tables)	3 Months Ended
	Sep. 30, 2017
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 income (loss) per share computations. 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 2017 2016 Basic: Net income $ 628 $ 286 Weighted average shares outstanding 4,150 4,062 Basic earnings per share $ 0.15 $ 0.07 Diluted: Net income $ 628 $ 286 Weighted average shares outstanding 4,150 4,062 Effect of dilutive securities – stock options 40 41 Weighted average shares used in calculation of diluted earnings per share 4,190 4,103 Diluted earnings per share $ 0.15 $ 0.07

INCOME TAXES (Tables)

INCOME TAXES (Tables)	3 Months Ended
	Sep. 30, 2017
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, 2017 $ 446 Additions based on tax positions related to the current year 4 Balance at September 30, 2017 $ 450

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	3 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of stock option activity	The following is a summary of stock option activity for the three months ended September 30, 2017 and 2016: Three Months Ended September 30, 2017 2016 Number of Shares Weighted-Average Exercise Price Number of Shares Weighted-Average Exercise Price Outstanding at beginning of period 57,000 $ 1.88 90,834 $ 1.95 Options granted — — — — Options exercised — — (25,000 ) (1.79 ) Options canceled or expired — — — — Outstanding at end of period 57,000 $ 1.88 65,834 $ 2.01 Stock Options Exercisable at September 30, 57,000 $ 1.88 65,834 $ 2.01

MAJOR CUSTOMERS & SUPPLIERS (Ta

MAJOR CUSTOMERS & SUPPLIERS (Tables)	3 Months Ended
	Sep. 30, 2017
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 periods ended September 30, 2017 and 2016 is as follows (in thousands, except percentages): Three Months Ended September 30, 2017 2016 Amount Percent of Total Amount Percent of Total Total revenue $ 5,162 100 % $ 5,129 100 % Customer concentration: Customer 1 $ 3,026 59 % $ 2,161 42 % Customer 2 618 12 % 421 8 % Customer 3 184 3 % 608 12 % Total $ 3,828 74 % $ 3,190 62 %
Schedule of accounts receivable of major customers	Information with respect to accounts receivable from those customers that comprised more than 10 % of our gross accounts receivable at either September 30, 2017 and June 30, 2017, is as follows (in thousands, except percentages): September 30, June 30, Total gross accounts receivable $ 2,257 100 % $ 3,541 100 % Customer concentration: Customer 1 $ 1,360 60 % $ 2,187 62 % Customer 4 131 6 % 554 16 % Customer 5 353 16 % 235 6 % Total. $ 1,844 82 % $ 2,976 84 %

COMPOSITION OF CERTAIN FINANC28

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Details) (Narrative) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2017	Jun. 30, 2017
Aggregate cost	$ 961	$ 663
Gross unrealized gain losses	(131)	55
Gross unrealized losses		2
Gross unrealized gains		57
Income taxes on investments	$ 22	$ 22
Customer List and Backlog [Member] | Maximum [Member]
Useful life	10 years
Covenant Not To Compete [Member] | Maximum [Member]
Useful life	10 years
Huber Precision [Member] | Customer List and Backlog [Member]
Impairment charge	$ 113

COMPOSITION OF CERTAIN FINANC29

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Marketable Equity Securities) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Marketable equity securities	$ 885	$ 718

COMPOSITION OF CERTAIN FINANC30

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Inventory) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Raw materials /purchased components	$ 1,275	$ 1,127
Work in process	960	747
Sub-assemblies /finished components	1,114	1,018
Finished goods	163	193
Total inventory	$ 3,512	$ 3,085

COMPOSITION OF CERTAIN FINANC31

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Intangible Assets) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017
Finite-Lived Intangible Assets [Line Items]
Total intangibles	$ 430	$ 422
Less accumulated amortization	(114)	(102)
Intangible assets,net	316	320
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	167
Patent-Related Costs [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangibles	$ 161	$ 153

DISCONTINUED OPERATIONS (Narrat

DISCONTINUED OPERATIONS (Narrative) (Details) $ in Thousands	Jan. 27, 2017USD ($)
Oregon Micro Systems ("OMS") [Member] | OREGON [Member]
Aggregate sales price received	$ 636

DISCONTINUED OPERATIONS (Operat

DISCONTINUED OPERATIONS (Operating Results of OMS Division) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Notes to Financial Statements
Revenues		$ 283
Loss from discontinued operations:
Loss from discontinued operations, before taxes		(1)
Income tax (expense) benefit
Net loss from discontinued operations		$ (1)

WARRANTY (Narrative) (Details)

WARRANTY (Narrative) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017	Sep. 30, 2016	Jun. 30, 2016
Product Warranties Disclosures [Abstract]
Warranty reserves	$ 146	$ 159	$ 349	$ 365

WARRANTY (Movement in Warranty)

WARRANTY (Movement in Warranty) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Beginning balance	$ 159	$ 365
Accruals during the period	20	101
Changes in estimates of prior period warranty accruals	(20)	(44)
Warranty amortization	(13)	(73)
Ending balance	$ 146	$ 349

NET INCOME (LOSS) PER SHARE (De

NET INCOME (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Basic:
Net income	$ 628	$ 286
Weighted average shares outstanding	4,150,099	4,062,475
Basic earnings per share	$ 0.15	$ 0.07
Diluted:
Net income	$ 628	$ 286
Weighted average shares outstanding	4,150,099	4,062,475
Effect of dilutive securities - stock options	40,000	41,000
Weighted average shares used in calculation of diluted earnings per share	4,189,724	4,103,459
Diluted earnings per share	$ 0.15	$ 0.07

INCOME TAXES (Narrative) (Detai

INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 450	$ 446

INCOME TAXES (Reconciliation of

INCOME TAXES (Reconciliation of Beginning and Ending Unrecognized Tax Benefits) (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2017USD ($)
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	4
Ending balance	$ 450

SHARE-BASED COMPENSATION (Narra

SHARE-BASED COMPENSATION (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2014	Nov. 29, 2016
2016 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available to be awarded				1,500,000
Employees Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value of stock options outstanding	$ 306
Weighted average remaining contractual life	3 years 9 months 18 days
ESPP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate share-based compensation expense	$ 3	$ 2
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)	3,099	2,056
Exercise price (in dollars per share)	$ 5.21	$ 4.91
Number of shares options purchased (in shares)	12,489

SHARE-BASED COMPENSATION (Summa

SHARE-BASED COMPENSATION (Summary of Stock Option Activity) (Details) - $ / shares	3 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Number of Shares
Outstanding at beginning of period	57,000	90,834
Options granted
Options exercised		(25,000)
Options canceled or expired
Outstanding at end of period	57,000	65,834
Stock Options Exercisable at September 30,	57,000	65,834
Weighted-Average Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 1.88	$ 1.95
Options granted (in dollars per share)
Options exercised (in dollars per share)		(1.79)
Options canceled or expired (in dollars per share)
Outstanding at end of period (in dollars per share)	1.88	2.01
Stock Options Exercisable at September 30, (in dollars per share)	$ 1.88	$ 2.01

MAJOR CUSTOMERS & SUPPLIERS (Na

MAJOR CUSTOMERS & SUPPLIERS (Narrative) (Details)	3 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Jun. 30, 2017
Concentration Risk [Line Items]
Percentage of concentrations risk	100.00%	100.00%	100.00%
Purchase [Member] | Supplier [Member]
Concentration Risk [Line Items]
Percentage of concentrations risk	13.00%	16.00%
Accounts Payable [Member] | Supplier [Member]
Concentration Risk [Line Items]
Percentage of concentrations risk	5.00%	12.00%

MAJOR CUSTOMERS & SUPPLIERS (Sa

MAJOR CUSTOMERS & SUPPLIERS (Sales) (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Jun. 30, 2017
Concentration Risk [Line Items]
Total revenue	$ 5,162	$ 5,129
Percentage of concentrations risk	100.00%	100.00%	100.00%
Total gross accounts receivable	$ 2,257		$ 3,541
Sales [Member]
Concentration Risk [Line Items]
Total revenue	$ 3,828	$ 3,190
Percentage of concentrations risk	74.00%	62.00%
Sales [Member] | Customer 1 [Member]
Concentration Risk [Line Items]
Total revenue	$ 3,026	$ 2,161
Percentage of concentrations risk	59.00%	42.00%
Sales [Member] | Customer 2 [Member]
Concentration Risk [Line Items]
Total revenue	$ 618	$ 421
Percentage of concentrations risk	12.00%	8.00%
Sales [Member] | Customer 3 [Member]
Concentration Risk [Line Items]
Total revenue	$ 184	$ 608
Percentage of concentrations risk	3.00%	12.00%
Accounts Receivable [Member]
Concentration Risk [Line Items]
Percentage of concentrations risk	82.00%		84.00%
Total gross accounts receivable	$ 1,844		$ 2,976
Accounts Receivable [Member] | Customer 1 [Member]
Concentration Risk [Line Items]
Percentage of concentrations risk	60.00%		62.00%
Total gross accounts receivable	$ 1,360		$ 2,187
Accounts Receivable [Member] | Customer 4 [Member]
Concentration Risk [Line Items]
Percentage of concentrations risk	6.00%		16.00%
Total gross accounts receivable	$ 131		$ 554
Accounts Receivable [Member] | Customer 5 [Member]
Concentration Risk [Line Items]
Percentage of concentrations risk	16.00%		6.00%
Total gross accounts receivable	$ 353		$ 235

NOTES RECEIVABLE (Details)

NOTES RECEIVABLE (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended
	Sep. 20, 2017	Apr. 19, 2017	Sep. 30, 2017	Sep. 30, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Principal paid in cash				$ 400
Monogram Orthopaedics Inc. [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Advanced amount		$ 450
Additional amount advanced on promissory note		$ 350
Interest rate		4.00%
Maturity date		Apr. 19, 2019
Monogram Orthopaedics Inc. [Member] | 2,300,000 loan [Member] | New York limited liability company [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Interest rate	22.00%
Principal paid in cash	$ 1,150,000
Participation Percentage of loan	50.00%
Loan amount	$ 2,300,000
Start date of loan	Oct. 1, 2017
Debt instrument term	Borrower may reduce the interest rate by 1% for each $100,000 repayment of principal up to a maximum reduction of 2%, thereby reducing the interest rate to a minimum amount equal to 20% per annum. If the principal balance of the Loan is not paid in full by September 30, 2018, commencing on October 1, 2018 and continuing on the first day of the next 83 months thereafter, Borrower shall, in addition to the aforementioned monthly interest payments, pay installments of principal equal to 1/84th of the principal balance outstanding under the Loan as of September 30, 2018.

NOTES PAYABLE AND FINANCING T44

NOTES PAYABLE AND FINANCING TRANSACTIONS (Details) - USD ($) $ in Thousands	Sep. 09, 2015	Feb. 01, 2015	Apr. 19, 2017	Jul. 21, 2016	Sep. 30, 2017	Sep. 30, 2016	Jun. 30, 2017
Short-term Debt [Line Items]
Borrowed from Summit loan						$ 400
Capital lease obligations					33		$ 32
Fineline Molds [Member]
Short-term Debt [Line Items]
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					39
Jules And Associates, Inc [Member] | Master Equipment Lease Agreement [Member]
Short-term Debt [Line Items]
Interim rent				$ 7,388
Cost of equipment				106
Amount of payment				$ 3,121
Duration of lease payment				36 months
Capital lease obligations					$ 66
Business Loan Agreement ("Loan Agreement") [Member] | Farmers & Merchants Bank of Long Beach [Member]
Short-term Debt [Line Items]
Description of interest rate			bears interest at prime plus 2 percent.
Debt instrument, maturity date			Mar. 28, 2018
Debt instrument, face amount			$ 500
Interest rate			6.25%
Loan and Security Agreement ("Summit Loan") [Member] | Summit Financial Resources LP, (the "Factor") [Member]
Short-term Debt [Line Items]
Description of interest rate	Bore interest at a rate of prime plus 2 percent.
Debt instrument, maturity date						Sep. 30, 2016
Debt instrument, face amount	$ 1,000
Percentage of monthly administrative fee	0.70%
Debt instrument, term	18 months
Debt instrument, renewal term	1 year
Debt instrument, annual facility fee	$ 10
Borrowed from Summit loan						$ 400

COMMON STOCK (Details)

COMMON STOCK (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		8 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2013
Class of Stock [Line Items]
Proceeds from sale of shares	$ 2,169
At The Market Offering Agreement [Member]
Class of Stock [Line Items]
Number of shares sold	320,000		328,276
Proceeds from sale of shares	$ 2,169		$ 2,287
Share issue price	$ 6.99		$ 6.99
Fees paid to Ascendiant	$ 67		$ 69
Share Repurchase Program [Member] | 10b5-1 Plan [Member]
Class of Stock [Line Items]
Number of authorized shares to repurchase				750,000
Expiration date	Dec. 8, 2017
Share Repurchase Program [Member] | 10b5-1 Plan [Member] | Cumulative basis [Member]
Class of Stock [Line Items]
Number of authorized shares to repurchase	232,957		232,957
Number of shares amount	$ 920		$ 920