Pro-Dex (PDEX) 10-Q 9 May 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Mar. 31, 2019	May 01, 2019
Document And Entity Information
Entity Registrant Name	PRO DEX INC
Entity Central Index Key	0000788920
Document Type	10-Q
Trading Symbol	PDEX
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity's Reporting Status Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		4,112,663
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2019

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2019	Jun. 30, 2018
Current Assets:
Cash and cash equivalents	$ 9,661	$ 5,188
Investments	2,814	2,220
Accounts receivable, net of allowance for doubtful accounts of $0 and $14 at March 31, 2019 and at June 30, 2018, respectively	3,742	2,955
Deferred costs	267	32
Inventory	4,805	4,393
Notes receivable	65	1,176
Prepaid expenses and other current assets	707	269
Total current assets	22,061	16,233
Equipment and leasehold improvements, net	2,511	1,755
Intangibles, net	133	140
Deferred income taxes, net	652	1,678
Investments	234
Notes receivable, net of current portion		43
Other assets	40	68
Total assets	25,631	19,917
Current Liabilities:
Accounts payable	1,543	1,083
Accrued expenses	1,121	1,266
Deferred revenue	200	31
Note payable and capital lease obligations	622	35
Income taxes payable	265	123
Total current liabilities	3,751	2,538
Deferred rent	135	97
Notes and capital leases payable, net of current portion	4,091	6
Total non-current liabilities	4,226	103
Total liabilities	7,977	2,641
Shareholders' equity:
Common shares; no par value; 50,000,000 shares authorized; 4,136,191 and 4,331,089 shares issued and outstanding at March 31, 2019 and June 30, 2018, respectively	17,116	19,835
Accumulated other comprehensive loss	(316)	(153)
Retained earnings (accumulated deficit)	854	(2,406)
Total shareholders' equity	17,654	17,276
Total liabilities and shareholders' equity	$ 25,631	$ 19,917

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2019	Jun. 30, 2018
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 0	$ 14
Common shares, no par value (in dollars per share)
Common shares, authorized	50,000,000	50,000,000
Common shares, issued	4,136,191	4,331,089
Common shares, outstanding	4,136,191	4,331,089

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Income Statement [Abstract]
Net sales	$ 6,854	$ 5,494	$ 20,168	$ 16,217
Cost of sales	4,591	3,518	12,930	10,663
Gross profit	2,263	1,976	7,238	5,554
Operating (income) expenses:
Selling expenses	122	83	252	257
General and administrative expenses	641	701	1,838	1,781
Impairment of goodwill and long-lived assets				230
Gain from disposal of equipment			(7)	(16)
Research and development costs	603	560	1,337	1,445
Total operating expenses	1,366	1,344	3,420	3,697
Operating income	897	632	3,818	1,857
Interest expense	(67)	(2)	(156)	(6)
Gain on sale of investments			356
Interest and other income	93	73	261	166
Income before income taxes	923	703	4,279	2,017
Income tax expense	(191)	(223)	(1,019)	(564)
Net income	732	480	3,260	1,453
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) from marketable equity investments, net of income taxes	33	60	(163)	(64)
Comprehensive income	$ 765	$ 540	$ 3,097	$ 1,389
Basic net income per share:
Net income	$ 0.18	$ 0.11	$ 0.77	$ 0.34
Diluted net income per share:
Net income	$ 0.17	$ 0.11	$ 0.75	$ 0.34
Weighted average common shares outstanding:
Basic	4,143	4,363	4,224	4,290
Diluted	4,257	4,403	4,338	4,330
Common shares outstanding	4,136	4,361	4,136	4,361

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands		Common Shares [Member]	Accumulated other comprehensive income (loss): [Member]	Retained earnings/(accumulated deficit): [Member]	Total
Balance at beginning at Jun. 30, 2017		$ 17,704	$ 33	$ (4,027)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation expense		191
Shares issued under ATM	[1]	2,120
Share repurchases		(18)
Shares withheld from common stock issued to pay employee payroll taxes
Exercise of stock options (in shares)
ESPP shares issued		37
Net income				1,453	$ 1,453
Net change in unrealized gain (loss) from marketable equity investments, net of taxes			(64)
Balance at end at Mar. 31, 2018		20,034	(31)	(2,574)	17,429
Balance at beginning at Dec. 31, 2017		19,889	(91)	(3,054)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation expense		142
Shares issued under ATM
Share repurchases		(18)
Exercise of stock options
ESPP shares issued		21
Net income				480
Net change in unrealized gain (loss) from marketable equity investments, net of taxes			60
Shares issued in connection with performance award vesting
Balance at end at Mar. 01, 2018		20,034	(31)	(2,574)	17,429
Balance at beginning at Dec. 31, 2017		19,889	(91)	(3,054)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income					480
Balance at end at Mar. 31, 2018		20,034	(31)	(2,574)	17,429
Balance at beginning at Jun. 30, 2018		19,835	(153)	(2,406)	$ 17,276
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation expense		28
Shares issued under ATM
Share repurchases		(2,675)
Shares withheld from common stock issued to pay employee payroll taxes		(101)
Exercise of stock options		7
Exercise of stock options (in shares)					3,000
ESPP shares issued		22
Net income				3,260	$ 3,260
Net change in unrealized gain (loss) from marketable equity investments, net of taxes			(163)
Balance at end at Mar. 31, 2019		17,116	(316)	854	17,654
Balance at beginning at Dec. 31, 2018		17,209	(349)	122
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation expense		10
Shares issued under ATM
Share repurchases		(115)
Shares withheld from common stock issued to pay employee payroll taxes
Exercise of stock options
ESPP shares issued		12
Net income				732	732
Net change in unrealized gain (loss) from marketable equity investments, net of taxes			33
Balance at end at Mar. 31, 2019		$ 17,116	$ (316)	$ 854	$ 17,654
[1]	Of the proceeds raised from the ATM shares issued during the first quarter of fiscal 2018, $142,000 were accounted for as a reduction of prepaid expenses.

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) $ in Thousands	9 Months Ended
	Mar. 31, 2019USD ($)
Statement of Stockholders' Equity [Abstract]
Proceeds raised from ATM, accounted for as reduction of prepaid expenses	$ 142

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 3,260	$ 1,453
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	309	472
Amortization of loan fees	5
Gain on disposal of equipment	(7)	(16)
Gain on sale of investments	(356)
Share-based compensation	28	191
Impairment of goodwill and long-lived assets		230
Deferred income taxes	1,026	224
Bad debt recovery	(14)
Changes in operating assets and liabilities:
Accounts receivable	(773)	103
Deferred costs	(235)	12
Assets held for sale		(84)
Inventory	(412)	(298)
Prepaid expenses and other assets	(410)	21
Accounts payable, accrued expenses and deferred rent	353	(576)
Deferred revenue	169	57
Income taxes payable	142
Net cash provided by operating activities	3,085	1,789
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of investments	(2,562)	(806)
Purchases of equipment and leasehold improvements	(1,048)	(820)
Proceeds from dividend reclassified as return of principal	23
Increase in notes receivable		(1,500)
Proceeds from collection of notes receivable	1,154
Proceeds from sale of investments	1,905
Proceeds from sale of equipment	7	30
Increase in intangibles	(11)	(11)
Net cash used in investing activities	(532)	(3,107)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchases of common stock	(2,675)	(18)
Proceeds from shares issued under ATM, net of commissions and fees		2,262
Proceeds from exercise of options and ESPP contributions	29	38
Borrowings from Minnesota Bank & Trust, net of loan origination fees	4,940
Payments of employee payroll taxes on net issuance of common stock	(101)
Principal payments on notes payable and capital lease	(273)	(70)
Net cash provided by financing activities	1,920	2,212
Net increase in cash and cash equivalents	4,473	894
Cash and cash equivalents, beginning of period	5,188	4,205
Cash and cash equivalents, end of period	9,661	5,099
Noncash investing and financing activity:
Value of shares issued to employees under performance awards	266
Cash paid during the period for:
Interest	134	6
Income taxes	$ 315	$ 287

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
BASIS OF PRESENTATION	NOTE 1. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of Pro-Dex, Inc. (“we,” “us,” “our,” “Pro-Dex” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Regulation S-K. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These financial statements should be read in conjunction with the consolidated financial statements presented in our Annual Report on Form 10-K for the fiscal year ended June 30, 2018. 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, 2018. Recent Accounting Standards In February 2016, the FASB issued ASU 2016-02, (Topic 842) “ Leases Recently Adopted Accounting Standards Effective July 1, 2018, we adopted new revenue recognition guidance issued by the FASB related to contracts with customers. Under ASU 2014-09, (Topic 606) “ Revenue From Contracts with Customers Reclassifications We have reclassified the gain on disposal of equipment in the amount of $16,000 for the nine months ended March 31, 2018, to operating income (expense) from other income (expense) as prescribed by U.S. GAAP. This reclassification has no impact on our net income. We have also reclassified the tax effect of unrealized losses from marketable equity investments in the amount of $21,000 for the nine months ended March 31, 2018 from a separate line item to deferred income taxes on the statement of cash flows. This reclassification has no impact on our net increase or decrease in cash.

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	9 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS	NOTE 2. DESCRIPTION OF BUSINESS We specialize in the design, development and manufacture of autoclavable, battery-powered and electric, multi-function surgical drivers and shavers used primarily in the orthopedic and maxocranial facial markets. We have patented adaptive torque-limiting software and proprietary sealing solutions which appeal to our customers, primarily medical device distributors. We also manufacture and sell rotary air motors to a wide range of industries. Our Fineline Molds division (“Fineline”), acquired in fiscal 2015, manufactured plastic injection molding for a variety of industries. As disclosed in our Form 8-K filed with the SEC on May 30, 2018, we sold substantially all of the assets of Fineline on May 23, 2018. Management reviewed ASU 2014-08 Reporting Discontinued Operations and Disposals of Components of an Entity

COMPOSITION OF CERTAIN FINANCIA

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS	9 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS	NOTE 3. COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS Inventory Inventory is stated at the lower of cost (first-in, first-out) or net realizable value and consists of the following (in thousands): March 31, June 30, Raw materials /purchased components $ 2,099 $ 1,878 Work in process 1,431 974 Sub-assemblies /finished components 1,157 1,193 Finished goods 118 348 Total inventory $ 4,805 $ 4,393 Investments Investments are stated at market value and consist of the following (in thousands): March 31, June 30, Marketable equity securities – short-term $ 2,814 $ 2,220 Marketable equity securities – long-term 234 — Total Marketable equity securities $ 3,048 $ 2,220 Investments at March 31, 2019 and June 30, 2018 had an aggregate cost basis of $3,364,000 and $2,373,000, respectively. The long-term investments include an equity security purchased during the third quarter of fiscal 2019 that is thinly traded and therefore we classified the asset as long term in nature because even if we decide to sell the stock we may not be able to sell our position within one year. At March 31, 2019, the investments included gross unrealized losses of $316,000 and no unrealized gains. At June 30, 2018, the investments included net unrealized losses of $153,000 (gross unrealized losses of $196,000 offset by gross unrealized gains of $43,000). Of the total short-term marketable equity securities at March 31, 2019 and June 30, 2018, $997,000 and $285,000, respectively, represent an investment in the common stock of Air T, Inc. Two of our Board members are also board members of Air T, Inc. and both either individually or through affiliates own an equity interest in Air T, Inc. Our Chairman, one of the two Board members aforementioned, also serves as the Chief Executive Officer and Chairman of Air T, Inc. The shares have been purchased through 10b5-1 Plans, which in accordance with our internal policies regarding the approval of related party transactions, was approved by our three Board members that are not affiliated with Air T, Inc. We invest surplus cash from time to time through our Investment Committee, which is comprised of one management director, Mr. Van Kirk, and two non-management directors, Mr. Cabillot and Mr. Swenson, who chairs the committee. Both Mr. Cabillot and Mr. Swenson are active investors with extensive portfolio management expertise. We leverage the experience of these committee members to make investment decisions for the investment of our surplus operating capital or borrowed funds. Additionally, many of our securities holdings include stocks of public companies that either Messrs. Swenson or Cabillot or both may own from time to time either individually or through the investment funds that they manage, or other companies whose boards they sit on, such as Air T, Inc. Intangibles Intangibles consist of the following (in thousands): March 31, June 30, Covenant not to compete — 30 Patent-related costs 175 164 Total intangibles $ 175 $ 194 Less accumulated amortization (42 ) (54 ) $ 133 $ 140 The covenant not to compete relates to assets acquired in conjunction with a business acquisition. The covenant not to compete and related accumulated amortization were retired during the second quarter of fiscal 2019. 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. Since we do not know when, or if, our patent applications will be issued, the future amortization expense is not predictable.

WARRANTY

WARRANTY	9 Months Ended
	Mar. 31, 2019
Product Warranties Disclosures [Abstract]
WARRANTY	NOTE 4. 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 March 31, 2019 and June 30, 2018, the warranty reserve amounted to $136,000 and $107,000, 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 March 31, 2019 and 2018 was $52,000 and $8,000, respectively, and for the nine months ended March 31, 2019 and 2018 was $82,000 and $36,000, respectively. Information regarding the accrual for warranty costs for the three and nine months ended March 31, 2019 and 2018 are as follows (in thousands): As of and for the 2019 2018 Beginning balance $ 99 $ 150 Accruals during the period 39 24 Changes in estimates of prior period warranty accruals 13 (16 ) Warranty amortization (15 ) (21 ) Ending balance $ 136 $ 137 As of and for the 2019 2018 Beginning balance $ 107 $ 159 Accruals during the period 93 76 Changes in estimates of prior period warranty accruals (11 ) (40 ) Warranty amortization (53 ) (58 ) Ending balance $ 136 $ 137

NET INCOME (LOSS) PER SHARE

NET INCOME (LOSS) PER SHARE	9 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
NET INCOME (LOSS) PER SHARE	NOTE 5. NET INCOME (LOSS) PER SHARE We calculate basic net income (loss) per share by dividing net income (loss) by the weighted-average number of common shares outstanding during the reporting period. 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 and performance awards. 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 Nine Months Ended 2019 2018 2019 2018 Basic: Net income $ 732 $ 480 $ 3,260 $ 1,453 Weighted average shares outstanding 4,143 4,363 4,224 4,290 Basic income per share $ 0.18 $ 0.11 $ 0.77 $ 0.34 Diluted: Net income $ 732 $ 480 $ 3,260 $ 1,453 Weighted average shares outstanding 4,143 4,363 4,224 4,290 Effect of dilutive securities – stock options & performance awards 114 40 114 40 Weighted average shares outstanding used in calculation of diluted earnings per share 4,257 4,403 4,338 4,330 Diluted income per share $ 0.17 $ 0.11 $ 0.75 $ 0.34

INCOME TAXES

INCOME TAXES	9 Months Ended
	Mar. 31, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 6. INCOME TAXES Deferred income taxes are provided on a liability method whereby deferred tax assets and liabilities are recognized for temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Significant management judgment is required in determining our provision for income taxes and the recoverability of our deferred tax assets. Such determination is based primarily on our historical taxable income, with some consideration given to our estimates of future taxable income by jurisdictions in which we operate and the period over which our deferred tax assets would be recoverable. As of March 31, 2019, we have accrued $479,000 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): March 31, 2019 2018 Unrecognized tax benefits: Beginning balance $ 462 $ 446 Additions based on tax positions related to the current year 17 12 Additions for tax positions of prior years — — Ending balance $ 479 $ 458 We recognize accrued interest and penalties related to unrecognized tax benefits when applicable. As of March 31, 2019, 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. We are subject to U.S. federal income tax, as well as income tax of multiple state tax jurisdictions. We are currently open to audit under the statute of limitations by the Internal Revenue Service for the years ended June 30, 2016 and later. Our state income tax returns are open to audit under the statute of limitations for the years ended June 30, 2015 and later. We do not anticipate a significant change to the total amount of unrecognized tax benefits within the next 12 months. On December 22, 2017, the Tax Cuts and Jobs Act was enacted into law. The new legislation represented a fundamental and dramatic shift in US taxation. The new legislation contains several key tax provisions that have impacted us including the reduction of the corporate tax rate to 21% effective January 1, 2018. The new legislation also included a variety of other changes including, but not limited to, a limitation on the tax deductibility of interest expense, acceleration of business asset expensing, and a reduction in the amount of executive pay that could qualify as a deduction.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	9 Months Ended
	Mar. 31, 2019
Share-based Payment Arrangement [Abstract]
SHARE-BASED COMPENSATION	NOTE 7. 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 and nine months ended March 31, 2019 and 2018, 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 March 31, 2019, 200,000 performance awards have been granted under the 2016 Equity Incentive Plan. Stock Options No options were granted during the three or nine months ended March 31, 2019 and 2018. As of March 31, 2019, there was no unrecognized compensation cost under the Former Stock Option Plans as all outstanding stock options are fully vested. As of March 31, 2019, the options had a weighted average contractual life of 2.3 years and an intrinsic value of $552,000. Following is a summary of stock option activity for the nine months ended March 31, 2019 and 2018: 2019 2018 Number of Shares Weighted-Average Number of Shares Weighted-Average Outstanding at July 1, 57,000 $ 1.88 57,000 $ 1.88 Options granted — — — — Options exercised (3,000 ) 2.14 — — Options forfeited — — — — Outstanding at end of period 54,000 $ 1.86 57,000 $ 1.88 Stock Options Exercisable at March 31, 54,000 $ 1.86 57,000 $ 1.88 Performance Awards In December 2017, the Compensation Committee of the Board of Directors granted 200,000 performance awards to our employees, which upon vesting will generally be paid in shares of our common stock. Whether any performance awards vest, and the amount that does vest, is tied to the completion of service periods that range from 7 months to 9.5 years at inception and the achievement of our common stock trading at certain pre-determined prices. The weighted average fair value of the performance awards granted was $4.46, calculated using the weighted average fair market value for each award, using a Monte Carlo simulation. On July 1, 2018, it was determined by the Compensation Committee of our Board of Directors that the first of five tranches of 40,000 performance awards had been achieved and participants were awarded an aggregate of 40,000 shares of common stock. Each participant elected a net issuance to cover their individual withholding taxes and therefore we issued 24,727 shares of common stock and paid $101,000 of participant-related payroll tax liabilities. 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 three months ended March 31, 2019 and 2018, we recorded share-based compensation expense in the amount of $2,000 and $4,000, respectively and 923 and 3,634 shares were purchased, respectively, and allocated to employees based upon their contributions at prices of $12.96 and $5.93, respectively, per share. On a cumulative basis, since the inception of the ESPP plan, employees have purchased a total of 18,866 shares. During the nine months ended March 31, 2019 and 2018, we recorded share-based compensation expense in the amount of $4,000 and $7,000, respectively, relating to the ESPP.

MAJOR CUSTOMERS AND SUPPLIERS

MAJOR CUSTOMERS AND SUPPLIERS	9 Months Ended
	Mar. 31, 2019
Risks and Uncertainties [Abstract]
MAJOR CUSTOMERS AND SUPPLIERS	NOTE 8. 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 nine-month periods ended March 31, 2019 and 2018, is as follows (in thousands, except percentages): Three Months Ended March 31, 2019 2018 Amount Percent of Total Amount Percent of Total Net sales $ 6,854 100 % $ 5,494 100 % Customer concentration: Customer 1 $ 4,116 60 % $ 2,960 54 % Customer 2 1,077 16 % 534 10 % Customer 3 905 13 % 324 6 % Customer 4 192 3 % 535 10 % Total $ 6,290 92 % $ 4,353 80 % Nine Months Ended March 31, 2019 2018 Amount Percent of Total Amount Percent of Total Net sales $ 20,168 100 % $ 16,217 100 % Customer concentration: Customer 1 $ 12,566 62 % $ 9,048 56 % Customer 2 2,601 13 % 1,629 10 % Customer 3 1,751 9 % 1,566 10 % Total $ 16,918 84 % $ 12,243 76 % Information with respect to accounts receivable from those customers whom comprised more than 10% of our gross accounts receivable at either March 31, 2019 or June 30, 2018, is as follows (in thousands, except percentages): March 31, 2019 June 30, 2018 Total gross accounts receivable $ 3,742 100 % $ 2,969 100 % Customer concentration: Customer 1 $ 1,887 50 % $ 1,673 56 % Customer 2 872 23 % 679 23 % Customer 3 459 12 % 279 9 % Total. $ 3,218 85 % $ 2,631 88 % We had one supplier that accounted for more than 10% of our purchases in either of the three-month and nine-month periods ended March 31, 2019 and 2018. Our purchases from this supplier ranged from 9% to 16% for the three and nine months ended March 31, 2019 and 2018. Accounts payable due to that supplier represented 18% and 17% of total accounts payable as of March 31, 2019 and June 30, 2018, respectively.

NOTES RECEIVABLE

NOTES RECEIVABLE	9 Months Ended
	Mar. 31, 2019
Financing Receivable, after Allowance for Credit Loss, Noncurrent [Abstract]
NOTES RECEIVABLE	NOTE 9. NOTES RECEIVABLE 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 constituted the purchase by us of a property interest in the Loan from Principal and did 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 bore 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. If the principal balance of the Loan was 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 would, 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 the Principal. In accordance with our internal policies regarding the approval of related party transactions, the Participation was approved by our four Board members that are not affiliated with Farnam. Fineline note receivable On May 23, 2018, we completed the sale of substantially all of the assets of Fineline, which was engaged in the manufacture of plastic injection molds serving customers in a variety of industries. The aggregate purchase price was $310,000, of which $30,000 was paid in cash at closing and the balance of $280,000 was to be paid to us under the terms of a five-year promissory note, which bore interest at 4% per annum and required sixty equal monthly payments of principal and accrued interest in the amount of approximately $5,000 each, beginning February 15, 2019. We determined that there was uncertainty regarding the collectability of this note. Therefore, during fiscal 2018 we offset the gain on the sale of the division in the amount of approximately $211,000, against the impairment of the note receivable because we believed that the fair market value of the collateral securing the note was less than the face amount of the note. As of March 31, 2019, the loan is in default. The loan balance in the amount of $65,000 has been classified as a current asset as we expect to recover the value of the note through the sale of the underlying collateral during the fourth fiscal quarter of 2019.

NOTES PAYABLE AND FINANCING TRA

NOTES PAYABLE AND FINANCING TRANSACTIONS	9 Months Ended
	Mar. 31, 2019
Notes Payable [Abstract]
NOTES PAYABLE AND FINANCING TRANSACTIONS	NOTE 10. NOTES PAYABLE AND FINANCING TRANSACTIONS Minnesota Bank & Trust On September 6, 2018, we entered into a Credit Agreement with Minnesota Bank & Trust, a Minnesota state banking corporation (“MBT”), providing for a $5,000,000 term loan (the “Term Loan”) as well as a $2,000,000 revolving loan (the “Revolving Loan” and together with the Term Loan, collectively the “Loans”), evidenced by a Term Note A and a Revolving Credit Note made by us in favor of MBT. The Loans are secured by substantially all of our assets pursuant to a Security Agreement entered into on September 6, 2018 between us and MBT. We paid loan origination fees to MBT in the amount of $60,000. The Term Loan matures on October 1, 2025 and bears interest at a fixed rate of 5.53% per annum. An initial payment of interest only in the amount of $18,433 was paid on October 1, 2018. Commencing November 1, 2018 and continuing on the first day of each subsequent month thereafter until the maturity date, we are required to make payments of principal and interest on the Term Loan of approximately $72,000, plus any additional accrued and unpaid interest through the date of payment. The balance owed on the Term Loan at March 31, 2019 is $4.7 million, which amount is net of unamortized loan fees. The Revolving Loan matures on September 6, 2019 unless earlier terminated pursuant to its terms and bears interest at the greater of (a) 4.5% or (b) the difference of the prime rate as published in the Money Rates section of the Wall Street Journal minus 0.50%. Commencing on the first day of each month after we initially borrow against the Revolving Loan, which we have yet to do, and each month thereafter until maturity, we are required to pay all accrued and unpaid interest on the Revolving Loan through the date of payment. Any principal on the Revolving Loan that is not previously prepaid shall be due and payable on the maturity date (or earlier termination of the Revolving Loan). Any payment on the Loans not made within seven days after the due date is subject to a late payment fee equal to 5% of the overdue amount. Upon the occurrence and during the continuance of an event of default, the interest rate of both Loans will be increased by 3% and MBT may, at its option, declare the Loans immediately due and payable in full. The Credit Agreement and Security Agreement contain representations and warranties, affirmative, negative and financial covenants, and events of default that are customary for loans of this type. 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 (“FMB”), providing for a $500,000 revolving loan facility. The loan was secured by substantially all of our assets and bore interest at prime plus 2 percent. The loan had an original maturity of March 28, 2018, which was subsequently extended to March 28, 2019. We did not at any time borrow funds under this facility. This loan was terminated by us on September 4, 2018 in conjunction with the MBT Loans described above. 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 March 31, 2019 is approximately $15,000.

COMMON STOCK

COMMON STOCK	9 Months Ended
	Mar. 31, 2019
Stockholders' Equity Note [Abstract]
COMMON STOCK	NOTE 11. 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 three and nine months ended March 31, 2019 we repurchased 7,914 and 225,368 shares, respectively at an aggregate cost, inclusive of fees under the plan, of $115,000 and $2,675,000, respectively On a cumulative basis, we have repurchased a total of 491,351 shares under the share repurchase program at an aggregate cost of $3.8 million. 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 March 31, 2018, we did not sell any common stock under the ATM. During the nine months ended March 31, 2018, we sold 332,189 shares of common stock under the ATM at average prices of $7.02 per share, resulting in proceeds to us of $2.2 million, net of commissions and fees. From the inception of the ATM in February 2017 through March 31, 2018 we have sold 340,465 shares of common stock for net proceeds of $2,311,000 net of commissions and fees paid to Ascendiant totaling $72,000. 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. In December 2017, the Board suspended the ATM indefinitely. The Board has the discretion to reactivate the ATM prior to February 16, 2020, the expiration of the ATM Agreement, unless earlier terminated by Ascendiant or us.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 12. COMMITMENTS AND CONTINGENCIES Legal Matters 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)	9 Months Ended
	Mar. 31, 2019
Accounting Policies [Abstract]
Recent Accounting Standards	Recent Accounting Standards In February 2016, the FASB issued ASU 2016-02, (Topic 842) “ Leases
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards Effective July 1, 2018, we adopted new revenue recognition guidance issued by the FASB related to contracts with customers. Under ASU 2014-09, (Topic 606) “ Revenue From Contracts with Customers
Reclassifications	Reclassifications We have reclassified the gain on disposal of equipment in the amount of $16,000 for the nine months ended March 31, 2018, to operating income (expense) from other income (expense) as prescribed by GAAP. This reclassification has no impact on our net income. We have also reclassified the tax effect of unrealized losses from marketable equity investments in the amount of $21,000 for the nine months ended March 31, 2018 from a separate line item to deferred income taxes on the statement of cash flows. This reclassification has no impact on our net increase or decrease in cash.

COMPOSITION OF CERTAIN FINANC_2

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Tables)	9 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of inventory	Inventory is stated at the lower of cost (first-in, first-out) or net realizable value and consists of the following (in thousands): March 31, June 30, Raw materials /purchased components $ 2,099 $ 1,878 Work in process 1,431 974 Sub-assemblies /finished components 1,157 1,193 Finished goods 118 348 Total inventory $ 4,805 $ 4,393
Schedule of investments	Investments are stated at market value and consist of the following (in thousands): March 31, June 30, Marketable equity securities – short-term $ 2,814 $ 2,220 Marketable equity securities – long-term 234 — Total Marketable equity securities $ 3,048 $ 2,220
Schedule of intangibles	Intangibles consist of the following (in thousands): March 31, June 30, Covenant not to compete — 30 Patent-related costs 175 164 Total intangibles $ 175 $ 194 Less accumulated amortization (42 ) (54 ) $ 133 $ 140

WARRANTY (Tables)

WARRANTY (Tables)	9 Months Ended
	Mar. 31, 2019
Product Warranties Disclosures [Abstract]
Schedule of accrual warranty costs	Information regarding the accrual for warranty costs for the three and nine months ended March 31, 2019 and 2018 are as follows (in thousands): As of and for the 2019 2018 Beginning balance $ 99 $ 150 Accruals during the period 39 24 Changes in estimates of prior period warranty accruals 13 (16 ) Warranty amortization (15 ) (21 ) Ending balance $ 136 $ 137 As of and for the 2019 2018 Beginning balance $ 107 $ 159 Accruals during the period 93 76 Changes in estimates of prior period warranty accruals (11 ) (40 ) Warranty amortization (53 ) (58 ) Ending balance $ 136 $ 137

NET INCOME (LOSS) PER SHARE (Ta

NET INCOME (LOSS) PER SHARE (Tables)	9 Months Ended
	Mar. 31, 2019
Earnings Per Share [Abstract]
Schedule of reconciliations of the numerators and denominators of the basic and diluted earnings (loss) per share computations for net income (loss)	The following table presents reconciliations of the numerators and denominators of the basic and diluted earnings (loss) per share computations for net income (loss). In the tables below, income (loss) amounts represent the numerator, and share amounts represent the denominator (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Basic: Net income $ 732 $ 480 $ 3,260 $ 1,453 Weighted average shares outstanding 4,143 4,363 4,224 4,290 Basic income per share $ 0.18 $ 0.11 $ 0.77 $ 0.34 Diluted: Net income $ 732 $ 480 $ 3,260 $ 1,453 Weighted average shares outstanding 4,143 4,363 4,224 4,290 Effect of dilutive securities – stock options & performance awards 114 40 114 40 Weighted average shares outstanding used in calculation of diluted earnings per share 4,257 4,403 4,338 4,330 Diluted income per share $ 0.17 $ 0.11 $ 0.75 $ 0.34

INCOME TAXES (Tables)

INCOME TAXES (Tables)	9 Months Ended
	Mar. 31, 2019
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): March 31, 2019 2018 Unrecognized tax benefits: Beginning balance $ 462 $ 446 Additions based on tax positions related to the current year 17 12 Additions for tax positions of prior years — — Ending balance $ 479 $ 458

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	9 Months Ended
	Mar. 31, 2019
Share-based Payment Arrangement [Abstract]
Schedule of stock option activity	Following is a summary of stock option activity for the nine months ended March 31, 2019 and 2018: 2019 2018 Number of Shares Weighted-Average Number of Shares Weighted-Average Outstanding at July 1, 57,000 $ 1.88 57,000 $ 1.88 Options granted — — — — Options exercised (3,000 ) 2.14 — — Options forfeited — — — — Outstanding at end of period 54,000 $ 1.86 57,000 $ 1.88 Stock Options Exercisable at March 31, 54,000 $ 1.86 57,000 $ 1.88

MAJOR CUSTOMERS AND SUPPLIERS (

MAJOR CUSTOMERS AND SUPPLIERS (Tables)	9 Months Ended
	Mar. 31, 2019
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 nine-month periods ended March 31, 2019 and 2018, is as follows (in thousands, except percentages): Three Months Ended March 31, 2019 2018 Amount Percent of Total Amount Percent of Total Net sales $ 6,854 100 % $ 5,494 100 % Customer concentration: Customer 1 $ 4,116 60 % $ 2,960 54 % Customer 2 1,077 16 % 534 10 % Customer 3 905 13 % 324 6 % Customer 4 192 3 % 535 10 % Total $ 6,290 92 % $ 4,353 80 % Nine Months Ended March 31, 2019 2018 Amount Percent of Total Amount Percent of Total Net sales $ 20,168 100 % $ 16,217 100 % Customer concentration: Customer 1 $ 12,566 62 % $ 9,048 56 % Customer 2 2,601 13 % 1,629 10 % Customer 3 1,751 9 % 1,566 10 % Total $ 16,918 84 % $ 12,243 76 %
Schedule of accounts receivable of major customers	Information with respect to accounts receivable from those customers whom comprised more than 10% of our gross accounts receivable at either March 31, 2019 or June 30, 2018, is as follows (in thousands, except percentages): March 31, 2019 June 30, 2018 Total gross accounts receivable $ 3,742 100 % $ 2,969 100 % Customer concentration: Customer 1 $ 1,887 50 % $ 1,673 56 % Customer 2 872 23 % 679 23 % Customer 3 459 12 % 279 9 % Total. $ 3,218 85 % $ 2,631 88 %

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Accounting Policies [Abstract]
Gain on disposal of equipment			$ 7	$ 16
Tax effect of unrealized losses on marketable equity investments				$ 21

COMPOSITION OF CERTAIN FINANC_3

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Details) (Narrative) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Mar. 31, 2019	Jun. 30, 2018
Aggregate cost	$ 3,364	$ 2,373
Net unrealized gains (losses)		(153)
Gross unrealized losses	316	196
Gross unrealized gains		43
Marketable equity securities	2,814	2,220
Air T, Inc. [Member]
Marketable equity securities	$ 997	$ 285

COMPOSITION OF CERTAIN FINANC_4

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Inventory) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Raw materials /purchased components	$ 2,099	$ 1,878
Work in process	1,431	974
Sub-assemblies /finished components	1,157	1,193
Finished goods	118	348
Total inventory	$ 4,805	$ 4,393

COMPOSITION OF CERTAIN FINANC_5

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Marketable Equity Securities) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Marketable equity securities - short-term	$ 2,814	$ 2,220
Marketable equity securities - long-term	234
Total Marketable equity securities	$ 3,048	$ 2,220

COMPOSITION OF CERTAIN FINANC_6

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Intangible Assets) (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jun. 30, 2018
Finite-Lived Intangible Assets [Line Items]
Total intangibles	$ 175	$ 194
Less accumulated amortization	(42)	(54)
Intangible assets,net	133	140
Covenant not to compete [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangibles		30
Patent-related costs [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangibles	$ 175	$ 164

WARRANTY (Narrative) (Details)

WARRANTY (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Product Warranties Disclosures [Abstract]
Warranty expense	$ 52	$ 8	$ 82	$ 36

WARRANTY (Movement in Warranty)

WARRANTY (Movement in Warranty) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Beginning balance	$ 99	$ 150	$ 107	$ 159
Accruals during the period	39	24	93	76
Changes in estimates of prior period warranty accruals	13	(16)	(11)	(40)
Warranty amortization	(15)	(21)	(53)	(58)
Ending balance	$ 136	$ 137	$ 136	$ 137

NET INCOME (LOSS) PER SHARE (De

NET INCOME (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Basic:
Net income	$ 732	$ 480	$ 3,260	$ 1,453
Weighted average shares outstanding	4,143	4,363	4,224	4,290
Basic income per share	$ 0.18	$ 0.11	$ 0.77	$ 0.34
Diluted:
Net income	$ 732	$ 480	$ 3,260	$ 1,453
Weighted average shares outstanding	4,143	4,363	4,224	4,290
Effect of dilutive securities - stock options & performance awards	114	40	114	40
Weighted average shares outstanding used in calculation of diluted earnings per share	4,257	4,403	4,338	4,330
Diluted income per share	$ 0.17	$ 0.11	$ 0.75	$ 0.34

INCOME TAXES (Narrative) (Detai

INCOME TAXES (Narrative) (Details)	9 Months Ended
	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Corporate tax rate	21.00%

INCOME TAXES (Reconciliation of

INCOME TAXES (Reconciliation of Beginning and Ending Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Unrecognized tax benefits:
Beginning balance	$ 462	$ 446
Additions based on tax positions related to the current year	17	12
Additions for tax positions of prior years
Ending balance	$ 479	$ 458

SHARE-BASED COMPENSATION (Narra

SHARE-BASED COMPENSATION (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		3 Months Ended			9 Months Ended
	Jul. 31, 2018	Dec. 31, 2017	Mar. 31, 2019	Mar. 31, 2018	Sep. 30, 2014	Mar. 31, 2019	Mar. 31, 2018	Jun. 30, 2018	Jun. 30, 2017	Nov. 29, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding			54,000	57,000		54,000	57,000	57,000	57,000
Weighted-average exercise price			$ 1.86	$ 1.88		$ 1.86	$ 1.88	$ 1.88	$ 1.88
Performance Award [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate share-based compensation expense			$ 8	$ 138		$ 24	$ 184
Number of awards granted during period	40,000	200,000
Period for award description						Whether any performance awards vest, and the amount that does vest, is tied to the completion of service periods that range from 7 months to 9.5 years and the achievement of our common stock trading at certain pre-determined prices.
Unrecognized compensation cost			$ 75			$ 75
Weighted-average period						4 years 1 month 16 days
Weighted average fair value						$ 4.46
Shares issued	24,727
Payment of payroll tax liabilities	$ 101
Common Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of awards granted during period	40,000
2016 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available to be awarded			200,000			200,000				1,500,000
Employees Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average remaining contractual life						2 years 3 months 19 days
Intrinsic value of stock options exercisable			$ 552			$ 552
ESPP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate share-based compensation expense			$ 2	$ 4		$ 4	$ 7
Description of plan					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.
Number of shares reserved for future issuance					704,715
Number of shares purchased and allocated to employee (in shares)						923	3,634
Exercise price (in dollars per share)						$ 12.96	$ 5.93
Number of shares options purchased (in shares)						18,866

SHARE-BASED COMPENSATION (Summa

SHARE-BASED COMPENSATION (Summary of Stock Option Activity) (Details) - $ / shares	9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Number of Shares
Outstanding at beginning of period	57,000	57,000
Options granted
Options exercised	(3,000)
Options forfeited
Outstanding at end of period	54,000	57,000
Stock Options Exercisable at end of period	54,000	57,000
Weighted- Average Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 1.88	$ 1.88
Options granted (in dollars per share)
Options exercised (in dollars per share)	2.14
Options forfeited (in dollars per share)
Outstanding at end of period (in dollars per share)	1.86	1.88
Stock Options Exercisable at end of period (in dollars per share)	$ 1.86	$ 1.88

MAJOR CUSTOMERS AND SUPPLIERS_2

MAJOR CUSTOMERS AND SUPPLIERS (Narrative) (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Jun. 30, 2018
Concentration Risk [Line Items]
Percentage of concentrations risk	100.00%	100.00%	100.00%	100.00%	100.00%
Accounts Payable [Member] | Supplier One [Member]
Concentration Risk [Line Items]
Percentage of concentrations risk			18.00%		17.00%
Purchase [Member] | Supplier One [Member] | Minimum [Member]
Concentration Risk [Line Items]
Percentage of concentrations risk	9.00%	9.00%	9.00%	9.00%
Purchase [Member] | Supplier One [Member] | Maximum [Member]
Concentration Risk [Line Items]
Percentage of concentrations risk	16.00%	16.00%	16.00%	16.00%

MAJOR CUSTOMERS AND SUPPLIERS_3

MAJOR CUSTOMERS AND SUPPLIERS (Sales) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Jun. 30, 2018
Concentration Risk [Line Items]
Net sales	$ 6,854	$ 5,494	$ 20,168	$ 16,217
Total gross accounts receivable	$ 3,742		$ 3,742		$ 2,969
Percentage of concentrations risk	100.00%	100.00%	100.00%	100.00%	100.00%
Sales [Member]
Concentration Risk [Line Items]
Net sales	$ 6,290	$ 4,353	$ 16,918	$ 12,243
Percentage of concentrations risk	92.00%	80.00%	84.00%	76.00%
Sales [Member] | Customer 1 [Member]
Concentration Risk [Line Items]
Net sales	$ 4,116	$ 2,960	$ 12,566	$ 9,048
Percentage of concentrations risk	60.00%	54.00%	62.00%	56.00%
Sales [Member] | Customer 2 [Member]
Concentration Risk [Line Items]
Net sales	$ 1,077	$ 534	$ 2,601	$ 1,629
Percentage of concentrations risk	16.00%	10.00%	13.00%	10.00%
Sales [Member] | Customer 3 [Member]
Concentration Risk [Line Items]
Net sales	$ 905	$ 324	$ 1,751	$ 1,566
Percentage of concentrations risk	13.00%	6.00%	9.00%	10.00%
Sales [Member] | Customer 4 [Member]
Concentration Risk [Line Items]
Net sales	$ 192	$ 535
Percentage of concentrations risk	3.00%	10.00%
Accounts Receivable [Member]
Concentration Risk [Line Items]
Total gross accounts receivable	$ 3,218		$ 3,218		$ 2,631
Percentage of concentrations risk	100.00%		85.00%		88.00%
Accounts Receivable [Member] | Customer 1 [Member]
Concentration Risk [Line Items]
Total gross accounts receivable	$ 1,887		$ 1,887		$ 1,673
Percentage of concentrations risk			50.00%		56.00%
Accounts Receivable [Member] | Customer 2 [Member]
Concentration Risk [Line Items]
Total gross accounts receivable	872		$ 872		$ 679
Percentage of concentrations risk			23.00%		23.00%
Accounts Receivable [Member] | Customer 3 [Member]
Concentration Risk [Line Items]
Total gross accounts receivable	$ 459		$ 459		$ 279
Percentage of concentrations risk			12.00%		9.00%

NOTES RECEIVABLE (Details)

NOTES RECEIVABLE (Details) - USD ($)	1 Months Ended		3 Months Ended
	May 23, 2018	Sep. 20, 2017	Mar. 31, 2019
Fineline Notes Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Aggregate purchase price	$ 310,000
Paid in cash	30,000
Debt instrument face amount	$ 280,000
Debt instrument term	5 years
Interest rate	4.00%
Periodic payment	$ 5,000
Gain on sale of assets	$ 211,000
Note Receivable current			$ 65,000
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 would, 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.
Payments received representing the value of warrants issued to company in conjunction with the loan extensions			$ 35,000

NOTES PAYABLE AND FINANCING T_2

NOTES PAYABLE AND FINANCING TRANSACTIONS (Details) - USD ($)	Oct. 02, 2018	Sep. 06, 2018	Apr. 19, 2017	Jul. 21, 2016	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Debt Instrument [Line Items]
Interest expense					$ 67,000	$ 2,000	$ 156,000	$ 6,000
Minnesota Bank & Trust [Member]
Debt Instrument [Line Items]
Debt instrument, origination fee		$ 60,000
Percentage of late payment fee							5.00%
Increased percentage of default late payment							3.00%
Minnesota Bank & Trust [Member] | Business Loan Agreement ("Revolving Loan Agreement") [Member]
Debt Instrument [Line Items]
Debt instrument, maturity date		Sep. 6, 2019
Debt instrument, face amount		$ 2,000,000
Interest rate		4.50%
Minnesota Bank & Trust [Member] | Business Loan Agreement ("Term Loan Agreement") [Member]
Debt Instrument [Line Items]
Debt instrument, maturity date		Oct. 1, 2025
Debt instrument, face amount		$ 5,000,000
Interest rate		5.53%
Interest expense	$ 18,433
Debt instrument, periodic payment of principal and interest beginning November 1, 2018		$ 72,000
Note payable balance					4,700,000		$ 4,700,000
Farmers & Merchants Bank of Long Beach [Member] | Business Loan Agreement ("Revolving Loan Agreement") [Member]
Debt Instrument [Line Items]
Description of interest rate			Bore interest at prime plus 2 percent.
Debt instrument, maturity date			Mar. 28, 2019
Debt instrument, face amount			$ 500,000
Jules And Associates, Inc [Member] | Master Equipment Lease Agreement [Member]
Debt Instrument [Line Items]
Interim rent				$ 7,388
Cost of equipment				106,000
Amount of payment				$ 3,121
Duration of lease payment				36 months
Capital lease obligations					$ 15,000		$ 15,000

COMMON STOCK (Details)

COMMON STOCK (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended		14 Months Ended	67 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2018	Mar. 31, 2019	Sep. 30, 2013
Class of Stock [Line Items]
Proceeds from sale of shares				$ 2,262
At The Market Offering Agreement [Member]
Class of Stock [Line Items]
Expiration date				Feb. 16, 2020
Number of shares sold				332,189	340,465
Proceeds from sale of shares				$ 2,200	$ 2,311
Average share price				$ 7.02
Fees paid to Ascendiant					$ 72
Share Repurchase Program [Member] | Cumulative basis [Member]
Class of Stock [Line Items]
Shares repurchased during the year, number of shares						491,351
Shares repurchased during year, value						$ 3,800
Share Repurchase Program [Member] | 10b5-1 Plan [Member]
Class of Stock [Line Items]
Shares repurchased during the year, number of shares	7,914	2,636	225,368	2,636
Shares repurchased during year, value	$ 115	$ 18	$ 2,675	$ 18
Number of authorized shares to repurchase, shares							750,000