Pro-Dex (PDEX) 10-K 12 Sep 19 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2019	Sep. 06, 2019	Dec. 31, 2018
Document And Entity Information
Entity Registrant Name	PRO DEX INC
Entity Central Index Key	0000788920
Document Type	10-K
Document Period End Date	Jun. 30, 2019
Amendment Flag	false
Document Fiscal Year Focus	2019
Current Fiscal Year End Date	--06-30
Document Fiscal Period Focus	FY
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
EntityShellCompany	false
Entity Public Float			$ 30.6
Entity Common Stock, Shares Outstanding		3,989,703
Entity Incorporation State Code	CO
Entity File Number	000-14942

BALANCE SHEETS

BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
Current assets:
Cash and cash equivalents	$ 7,742	$ 5,188
Investments	2,649	2,220
Accounts receivable, net of allowance for doubtful accounts of $0 and $14 at June 30, 2019 and 2018, respectively	4,100	2,955
Deferred costs	430	32
Notes receivable (See Note 6)		1,176
Inventory	6,239	4,393
Prepaid expenses and other current assets	623	269
Total current assets	21,783	16,233
Plant, equipment and leasehold improvements, net	2,726	1,755
Intangibles, net	129	140
Deferred income taxes, net	260	1,678
Investments	582
Notes receivable, net of current portion (See Note 6)		43
Other assets	40	68
Total assets	25,520	19,917
Current liabilities:
Accounts payable	1,996	1,083
Accrued liabilities	1,437	1,266
Deferred revenue	215	31
Note payable and capital lease obligations	622	35
Total current liabilities	4,270	2,415
Non-current liabilities:
Deferred rent	146	97
Income taxes payable	162	123
Notes and capital lease payable, net of current portion	3,934	6
Total non-current liabilities	4,242	226
Total liabilities	8,512	2,641
Commitments and Contingencies:
Shareholders' equity:
Common stock, no par value, 50,000,000 shares authorized; 4,039,491 and 4,331,089 shares issued and outstanding at June 30, 2019 and 2018, respectively	15,815	19,835
Accumulated other comprehensive loss	(549)	(153)
Retained earnings (accumulated deficit)	1,742	(2,406)
Total shareholders' equity	17,008	17,276
Total liabilities and shareholders' equity	$ 25,520	$ 19,917

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 0	$ 14
Common shares, par value	$ 0	$ 0
Common shares, authorized	50,000,000	50,000,000
Common shares, issued	4,039,491	4,331,089
Common shares, outstanding	4,039,491	4,331,089

STATEMENTS OF OPERATIONS AND CO

STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Income Statement [Abstract]
Net sales	$ 27,172	$ 22,465
Cost of sales	17,392	14,522
Gross profit	9,780	7,943
Operating (income) expenses:
Selling expenses	415	358
General and administrative expenses	2,492	2,287
Asset impairment charges		1,029
Gain on disposal of equipment	(7)	(16)
Research and development costs	1,882	1,893
Total operating expenses	4,782	5,551
Operating income	4,998	2,392
Other income (expense):
Interest and dividend income	268	225
Other income	45
Gain on sale of investments	356
Interest expense	(220)	(7)
Total other income	449	218
Income before income taxes	5,447	2,610
Income tax expense	1,299	989
Net income	4,148	1,621
Other comprehensive loss, net of tax:
Unrealized loss from marketable equity investments, net of income taxes	(396)	(186)
Comprehensive income	$ 3,752	$ 1,435
Basic & Diluted income per share:
Basic net income per share	$ 0.99	$ 0.38
Diluted net income per share	$ 0.97	$ 0.37
Weighted average common shares outstanding:
Basic	4,192,365	4,304,602
Diluted	4,298,332	4,344,765

STATEMENTS OF SHAREHOLDERS' EQU

STATEMENTS OF SHAREHOLDERS' EQUITY - 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)	$ 13,710
Balance at beginning (in shares) at Jun. 30, 2017		4,025,193
Net income				1,621	$ 1,621
Exercise of stock options (in shares)
Net change in unrealized gain (loss) from marketable equity investments			(186)		$ (186)
ESPP shares issued		$ 37			37
ESPP shares issued (in shares)		6,733
Share-based compensation		$ 194			194
Shares issued under ATM	[1]	$ 2,120			2,120
Shares issued under ATM, (in shares)	[1]	332,189
Share repurchases		$ (220)			(220)
Share repurchases (in shares)		(33,026)
Balance at end at Jun. 30, 2018		$ 19,835	(153)	(2,406)	17,276
Balance at end (in shares) at Jun. 30, 2018		4,331,089
Net income				4,148	4,148
Exercise of stock options		$ 6			$ 6
Exercise of stock options (in shares)		3,000			3,000
Net change in unrealized gain (loss) from marketable equity investments			(396)		$ (396)
ESPP shares issued		$ 22			22
ESPP shares issued (in shares)		2,743
Shares issued in connection with performance award vesting
Shares issued in connection with performance award vesting (in shares)		40,000
Shares withheld from common stock issued to pay employee payroll taxes		$ (101)			(101)
Shares withheld from common stock issued to pay employee payroll taxes (in shares)		(15,273)
Share-based compensation		$ 37			37
Share repurchases		$ (3,984)			(3,984)
Share repurchases (in shares)		(322,068)
Balance at end at Jun. 30, 2019		$ 15,815	$ (549)	$ 1,742	$ 17,008
Balance at end (in shares) at Jun. 30, 2019		4,039,491
[1]	$142,000 of the proceeds raised from the ATM shares issued during fiscal 2018, were accounted for as a reduction of prepaid expenses related to establishing the ATM.

STATEMENTS OF SHAREHOLDERS' E_2

STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) $ in Thousands	12 Months Ended
	Jun. 30, 2018USD ($)
Statement of Stockholders' Equity [Abstract]
Proceeds raised from ATM, accounted for as reduction of prepaid expenses	$ 142

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 4,148	$ 1,621
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	438	557
Gain on sale of investments	(356)
Gain on sale or disposal of equipment	(7)	(16)
Amortization of loan fees	7
Asset impairment charges		1,029
Share-based compensation	37	194
Deferred income taxes	1,418	391
Bad debt expense (recovery)	(14)	14
Changes in operating assets and liabilities:
Accounts receivable	(1,131)	569
Deferred costs	(398)	(19)
Assets held for sale		31
Inventory	(1,846)	(1,309)
Prepaid expenses and other assets	(326)	(45)
Accounts payable, accrued expenses and deferred rent	1,133	(57)
Deferred revenue	184	13
Income taxes payable	39	123
Net cash provided by operating activities	3,326	3,096
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of equipment and leasehold improvements	(1,387)	(923)
Purchase of notes receivable		(350)
Investment in Loan Participation (See Note 6)		(1,150)
Proceeds from dividend reclassified as return of principal	23
Proceeds from sale of equipment	7	30
Proceeds from collection of notes receivable	1,219
Proceeds from sale of investments	1,905
Increase in intangibles	(11)	(11)
Purchase of investments	(2,978)	(1,711)
Net cash used in investing activities	(1,222)	(4,115)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on capital lease and note payable	(433)	(78)
Proceeds from shares issued under ATM		2,262
Borrowing from Minnesota Bank & Trust, net of loan origination fees	4,940
Repurchases of common stock	(3,984)	(220)
Payments of employee taxes on net issuance of common stock	(101)
Proceeds from exercise of stock options and ESPP contributions	28	38
Net cash provided by financing activities	450	2,002
Net increase in cash and cash equivalents	2,554	983
Cash and cash equivalents, beginning of year	5,188	4,205
Cash and cash equivalents, end of year	7,742	5,188
Noncash investing and financing activities:
Promissory note issued in connection with sale of Fineline		280
Supplemental disclosures of cash flow information:
Cash paid for income taxes, net of refunds	320	401
Cash paid for interest	$ 199	$ 7

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	12 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS	1. 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 a 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

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The summary of significant accounting policies presented below is designed to assist the reader in understanding our financial statements. Such financial statements and related notes are the representations of management, who is responsible for their integrity and objectivity. In the opinion of management, these accounting policies conform to accounting principles generally accepted in the United States of America (“GAAP”) in all material respects, and have been consistently applied in preparing the accompanying financial statements. Revenue Recognition Revenue from product sales is recognized as promulgated by the Financial Accounting Standards Board (FASB) in Accounting Standards Update (“ASU”) 2014-09 Revenue from Contracts with Customers Revenue from services, typically non-recurring engineering services related to the design or customization of a medical device, is typically recognized over-time. Returns of our product for credit are minimal; accordingly, we do not establish a reserve for product returns at the time of sale. Estimated Losses on Product Development Services Cost and revenue estimates related to the product development service portions of development and supply contracts are reviewed and updated quarterly. An expected loss on development service contracts is recognized immediately in cost of sales. Owing to the complexity of many of the contracts we have undertaken, the cost estimation process requires significant judgment. It is based upon the knowledge and experience of our project managers, engineers, and finance professionals. Factors that are considered in estimating the cost of work to be completed and ultimate profitability of the fixed price product development portion of development and supply contracts include the nature and complexity of the work to be performed, availability and productivity of labor, the effect of change orders, the availability of materials, performance of subcontractors, and expected costs for specific regulatory approvals. Warranties Certain of our products are sold with a warranty that provides for repairs or replacement of any defective parts for a period, generally one to two years, after the sale. At the time of the sale, we accrue an estimate of the cost of providing the warranty based on prior experience with such factors as return rates and repair costs, which factors are reviewed quarterly. 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 balance sheets. Warranty expenses are included in cost of sales in the accompanying 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. Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of ninety days or less to be cash equivalents. At June 30, 2019 and 2018, cash equivalents consisted of investments in money market funds. Accounts Receivable Trade receivables are stated at their original invoice amounts, less an allowance for doubtful portions of such accounts. Management determines the allowance for doubtful accounts based on facts and circumstances related to specific accounts and the age of accounts. Trade receivables are written off when deemed uncollectible. Recoveries of trade receivables previously reserved are offset against the allowance when received. Deferred Costs Deferred costs reflect costs incurred related to non-recurring engineering services under the terms of the related development and/or supply contracts. These costs get recorded to cost of sales in the period that the revenue is recognized. Inventories Inventories are stated at the lower of cost (first-in, first-out method) or net realizable value. Cost includes materials, labor and manufacturing overhead related to the purchase and production of inventories. Reductions to estimated market value are recorded, and charged to cost of sales, when indicated based on a formula that compares on-hand quantities to both historical usage and estimated demand over the ensuing 12 months from the measurement date. On an on-going basis, we evaluate inventory for obsolescence and slow-moving items. This evaluation includes analysis of historical sales and usage, existing demand, as well as specific factors known to management. As of June 30, 2019, there was approximately $276,000 of inventory in-transit. Investments Investments at June 30, 2019 and 2018 consist of marketable equity securities of publicly held companies. The investments were made to realize a reasonable return, although there is no assurance that positive returns will be realized. Investments are marked to market at each measurement date, with unrealized gains and losses, net of income taxes, presented as adjustments to accumulated other comprehensive income or loss. During fiscal 2019, we invested in the common stock of a public company that is listed on the Over-the-Counter market and is thinly traded. This investment was subject to an independent valuation as of June 30, 2019. Long-lived Assets We review the recoverability of long-lived assets, consisting of equipment and leasehold improvements, when events or changes in circumstances occur that indicate carrying values may not be recoverable. Equipment and leasehold improvements are recorded at historical cost and depreciation is provided using the straight-line method over the following periods: Equipment Three to ten years Leasehold improvements Shorter of the lease term or the asset’s estimated useful life Intangibles Intangibles consist of legal fees incurred in connection with patent applications. Certain of our patent costs are being amortized over a period of seven years, the estimated life of the product that is currently utilizing the patented technology. The remaining patent costs will be amortized over the estimated life of the product(s) that will be utilizing the technology, or expensed immediately in the event the patent office denies the issuance of the patent. The expense associated with the amortization of the patent costs is recognized in research and development costs. Notes Receivable Notes receivable are stated at unpaid principal balance and are subject to impairment losses. Management considers a note impaired when either i) based upon current information or factors it is probable that the principal and interest payments will not be collected, or converted to equity, according to the terms of the secured convertible promissory note or ii) the fair market of the underlying collateral securing the note is less than the book value of the note receivable. Income Taxes We recognize deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of our assets and liabilities along with net operating losses and tax credit carryovers. Deferred tax assets at both June 30, 2019 and 2018 consisted primarily of basis differences related to research and development tax credit utilization, accrued expenses, inventories and intangible assets. Significant management judgment is required in determining the provision for income taxes and the recoverability of deferred tax assets. Such determination is based on historical taxable income, with consideration given to estimates of future taxable income and the periods over which deferred tax assets will be recoverable. We record a valuation allowance against deferred tax assets to reduce the net carrying value to an amount that we believe is more likely than not to be realized. When we establish or reduce the valuation allowance against deferred tax assets, the provision for income taxes will increase or decrease, respectively, in the period such determination is made. Uncertain Tax Positions We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. Shipping and Handling Payments from customers for shipping and handling are included in net sales . Concentration of Credit Risk Financial instruments that potentially subject us to credit risk consist principally of cash, cash equivalents, and trade receivables. We place our cash and cash equivalents with major financial institutions. At June 30, 2019 and 2018, and throughout the fiscal years then ended, we had deposits in excess of federally insured limits. Credit sales are made to original equipment manufacturers and resellers throughout the world, and sales to such customers account for a substantial portion of our trade receivables. While such receivables are not collateralized, we evaluate their collectability based on several factors including customers’ payment histories. Compensation Plans We recognize compensation expense for the share-based awards that vest subject to market conditions under ASC 718 Compensation-Stock Compensation Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Our operations are affected by numerous factors including market acceptance of our products, changes in technologies, and new laws, government regulations and policies. We cannot predict what impact, if any, the occurrence of these or other events might have on our operations. Significant estimates and assumptions made by management include, but are not limited to, revenue recognition, share-based compensation, the allowance for doubtful accounts, accrued warranty expense, inventory valuation, the carrying value of long-lived assets, the recoverability of notes receivable and the recovery of deferred income tax assets. Basic and Diluted Per Share Information Basic per share amounts are computed on the basis of the weighted-average number of common shares outstanding during each period presented. Diluted per share amounts assume the issuance of all potential common stock equivalents, consisting of outstanding stock options and performance awards as discussed in Note 11, unless the effect of such exercise is to increase income, or decrease loss, per common share. Fair Value Measurements Fair value is measured based on the prices that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are based on a three-tier hierarchy that prioritizes the inputs used to measure fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions. Cash and cash equivalents: Investments: Notes receivable: Although the methods above may produce a fair value calculation that may not be indicative of the net realizable value or reflective of future fair values, we believe our valuation methods are appropriate. Advertising Advertising costs are charged to selling or general and administrative expense as incurred and amounted to $2,000 and $36,000 for the fiscal years ended June 30, 2019 and 2018, respectively. 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 our income taxes payable, which consists of uncertain tax positions, from current liabilities to non-current liabilities as prescribed by GAAP. This balance sheet reclassification had no impact on our net income.

COMPOSITION OF CERTAIN FINANCIA

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS	12 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS	3. COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS Investments Investments are stated at market value and consist of the following (in thousands): June 30, June 30, Marketable equity securities – short-term $ 2,649 $ 2,220 Marketable equity securities – long-term 582 — Total Marketable equity securities $ 3,231 $ 2,220 Investments at June 30, 2019 and 2018 had an aggregate cost basis of $3,780,000 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 June 30, 2019, the investments included gross unrealized losses of $549,000 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 June 30, 2019 and 2018, $938,000 and $285,000, respectively, represent an investment in the common and preferred 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. Inventory Inventory is stated at the lower of cost (first-in, first-out) or net realizable value and consists of the following (in thousands): June 30, 2019 2018 Raw materials /purchased components $ 3,132 $ 1,878 Work in process 1,511 974 Sub-assemblies /finished components 1,524 1,193 Finished goods 72 348 Total inventory $ 6,239 $ 4,393 Equipment and Leasehold Improvements Equipment and leasehold improvements consist of the following (in thousands): June 30, 2019 2018 Office furnishings and fixtures $ 2,067 $ 1,821 Machinery and equipment 5,119 4,488 Automobiles 21 — Leasehold improvements 2,276 2,170 Total 9,483 8,479 Less: Accumulated depreciation and amortization (6,757 ) (6,724 ) $ 2,726 $ 1,755 Depreciation expense for the years ended June 30, 2019 and 2018 amounted to $416,000 and $522,000, respectively. During fiscal 2019, fully depreciated assets in the amount of $103,000 were retired and an additional $280,000 of fully depreciated assets were sold. During fiscal 2018, assets in the amount of approximately $1.2 million were retired and an additional $359,000 of fully depreciated assets were sold. Intangibles Intangibles consist of the following (in thousands): June 30, June 30, Covenant not to compete $ — $ 30 Patent-related costs 175 164 Total intangibles 175 194 Less accumulated amortization (46 ) (54 ) $ 129 $ 140 Amortization expense for the years ended June 30, 2019 and 2018 amounted to $22,000 and $20,000, respectively. The covenant not to compete related 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. Accrued Liabilities Accrued liabilities consist of the following (in thousands): June 30, 2019 2018 Payroll and related items $ 480 $ 438 Accrued inventory in transit 276 301 Accrued legal and professional fees 130 155 Accrued bonuses 221 109 Warranty 136 107 Accrued losses on development contracts 83 83 Accrued sales, use and excise taxes 2 6 Other 109 67 $ 1,437 $ 1,266

WARRANTY ACCRUAL

WARRANTY ACCRUAL	12 Months Ended
	Jun. 30, 2019
Product Warranties Disclosures [Abstract]
WARRANTY ACCRUAL	4. WARRANTY ACCRUAL Information relating to the accrual for warranty costs for the years ended June 30, 2019 and 2018 is as follows (in thousands): June 30, 2019 2018 Balance at beginning of year $ 107 $ 159 Accruals during the year 119 102 Change in estimates of prior period accruals (18 ) (97 ) Warranty amortization (72 ) (57 ) Balance at end of year $ 136 $ 107 Warranty expense relating to new product sales and changes to estimates was $101,000 and $5,000, respectively, for the fiscal years ended June 30, 2019 and 2018.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	5. INCOME TAXES On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted into law. The new legislation represents a fundamental and dramatic shift in US taxation. The new legislation contained several key tax provisions that impacted us including the reduction of the corporate income 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 deductibility of interest expense, acceleration of business asset expensing and reduction in the amount of executive pay that could qualify as a tax deduction. The provision for income taxes consists of the following amounts (in thousands): Years Ended June 30, 2019 2018 Current: Federal $ (140 ) $ 579 State 21 19 Deferred: Federal 1,079 247 State 339 144 Income tax expense $ 1,299 $ 989 Section 15 of the Internal Revenue Code stipulated that our fiscal year ended June 30, 2018 have a blended federal statutory tax rate of 27.55%, which was based on the applicable tax rates before and after the effectiveness of the Tax Act and the number of days in the year. The effective income tax rate from income (loss) from continuing operations differs from the United States statutory income tax rates for the reasons set forth in the table below (in thousands, except percentages). Years Ended June 30, 2019 2018 Amount Percent Pretax Income Amount Percent Pretax Income Income before income taxes $ 5,447 100 % $ 2,610 100 % Computed “expected” income tax expense on income before income taxes $ 1,135 21 % $ 719 28 % State tax, net of federal benefit 281 5 % 73 3 % Tax incentives (85 ) (1 %) (47 ) (2 %) Change in valuation allowance 11 — 202 8 % Tax law changes (8 ) — 119 5 % Domestic production deduction 8 — (84 ) (4 %) Other (43 ) (1 %) 7 — Income tax expense $ 1,299 24 % $ 989 38 % Deferred income taxes reflect the net effects of loss and credit carryforwards and temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities for federal and state income taxes are as follows (in thousands): June 30, 2019 2018 Deferred tax assets: Federal & State NOL carryforward $ 23 $ 23 Research & other credits 347 1,517 Reserves and accruals 431 438 Stock based compensation 9 55 Inventory 357 371 Other intangibles 37 70 Other 147 48 Total gross deferred tax assets $ 1,351 $ 2,522 Less: valuation allowance (477 ) (368 ) Total deferred tax assets 874 2,154 June 30, 2019 2018 Deferred tax liabilities: Property and equipment, principally due to differing depreciation methods $ (527 ) $ (318 ) Deferred state tax (81 ) (152 ) Other (6 ) (6 ) Total gross deferred tax liabilities (614 ) (476 ) Net deferred tax assets $ 260 $ 1,678 Realization of our deferred tax assets is dependent upon future earnings, if any, the timing and amount of which are uncertain. As of June 30, 2019, our deferred tax asset valuation allowance primarily consists of unrealized capital loss for investments held and the state net operating loss carryforwards for states in which we have filed a final return. For the year ended June 30, 2019, we recorded a net valuation allowance of $109,000, on the basis of management’s reassessment of the amount of our deferred tax assets that are more likely than not to be realized. As of June 30, 2019, we did not have any net operating losses for federal and state income tax purposes for state jurisdictions in which we currently operate. We have no federal research and development and alternative minimum tax credit carry forwards at June 30, 2019. State tax research credit carry forwards at June 30, 2019 amount to $347,000, the majority of which do not expire. As of June 30, 2019, we have accrued $490,000 of unrecognized tax benefits related to federal and state income tax matters that would reduce our income tax expense if recognized. If we are eventually able to recognize our uncertain tax positions, our effective tax rate would be reduced. Any adjustment to our uncertain tax positions would result in an adjustment of our tax credit carryforwards rather than resulting in a cash outlay. Information with respect to our accrual for unrecognized tax benefits is as follows (in thousands): June 30, 2019 2018 Unrecognized tax benefits: Beginning balance $ 462 $ 446 Additions based on federal tax positions related to the current year 11 8 Additions based on state tax positions related to the current year 11 8 Additions for tax positions of prior years 6 — Reductions for tax positions of prior years — — Ending balance $ 490 $ 462 Although it is reasonably possible that certain unrecognized tax benefits may increase or decrease within the next twelve months due to tax examinations, settlement activities, expirations of statute of limitations, or the impact on recognition and measurement considerations related to the results of published tax cases or other similar activities, we do not anticipate any significant changes to unrecognized tax benefits over the next twelve months. We recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense when applicable. As of June 30, 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 California and Colorado. 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. However, because of net operating losses and research credit carryovers, substantially all of our tax years are open to audit.

NOTES RECEIVABLE

NOTES RECEIVABLE	12 Months Ended
	Jun. 30, 2019
Financing Receivable, after Allowance for Credit Loss, Noncurrent [Abstract]
NOTES RECEIVABLE	6. 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 “Loan Participation”) in Principal’s $2,300,000 loan (the “Loan”) to 414 New York LLC, a New York limited liability company (“Borrower”). The Loan 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 Loan 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. During the third quarter ended March 31, 2019, the loan fell into default. During the fourth quarter ended June 30, 2019 we sold the collateral securing the loan for $75,000 cash, eliminated the note receivable balance and recorded approximately $10,000, the amount in excess of the note receivable balance, to other income in our statement of operations and comprehensive income.

NOTES PAYABLE AND FINANCING TRA

NOTES PAYABLE AND FINANCING TRANSACTIONS	12 Months Ended
	Jun. 30, 2019
Notes Payable [Abstract]
NOTES PAYABLE AND FINANCING TRANSACTIONS	7. 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, which is being amortized to loan fees over the term of the underlying debt. 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 June 30, 2019 is $4.6 million. 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. Scheduled maturities of our Term Loan for future fiscal years ending June 30 are as follows (in thousands): Term Fiscal Year: 2020 $ 624 2021 660 2022 697 2023 737 2024 778 Thereafter 1,107 Total principal payments $ 4,603 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 “Revolving Loan Facility”). The Revolving Loan Facility was secured by substantially all of our assets and bore interest at prime plus 2 percent and matured on March 28, 2018. During the initial loan period, we did not borrow any funds. As disclosed in a Form 8-K filed with the SEC on April 17, 2018, we entered into a Change in Terms Agreement and an Amendment #1 to Business Loan Agreement, each dated effective April 6, 2018, which extended the maturity date of the Revolving Loan Facility to March 28, 2019. This loan was terminated by us on September 4, 2018 in conjunction with the MBT Loans described above. Jules & Associates/Hitachi Capital America Corporation 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 June 30, 2019 is approximately $6,000.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	8. COMMITMENTS AND CONTINGENCIES Leases We lease our office, production and warehouse facility in Irvine, California, (our “corporate office”) under an agreement that expires in September 2027. We leased our former San Dimas, California office until the sale of our Fineline division in May 2018 at which time it terminated. Our corporate office lease requires us to pay insurance, taxes, and other expenses related to the leased space. Rent expense in fiscal 2019 and 2018 was $548,000 and $551,000, respectively. Minimum lease payments for future fiscal years ending June 30 are as follows (in thousands): Operating Fiscal Year: 2020 $ 461 2021 475 2022 489 2023 504 2024 519 Thereafter 1,796 Total minimum lease payments $ 4,244 Compensation Arrangements Retirement Savings 401(k) Plan The Pro-Dex, Inc. Retirement Savings 401(k) Plan (the “401(k) Plan”) is a defined contribution plan we administer that covers substantially all our employees and is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended. Employees are eligible to participate in the 401(k) Plan when they have attained 19 years of age and then can enter into the 401(k) Plan on the first day of each calendar quarter. Participants are eligible to receive non-discretionary Pro-Dex matching contributions of 25% of their contributions up to 5% of eligible compensation. For the fiscal years ended June 30, 2019 and 2018, we recognized compensation expense amounting to $42,000 and $54,000, respectively, in connection with the 401(k) Plan. During our fiscal year ended June 30, 2019, we used approximately $16,000 of forfeited match contributions to reduce our match expense. 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.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	12 Months Ended
	Jun. 30, 2019
Share-based Payment Arrangement [Abstract]
SHARE-BASED COMPENSATION	9. SHARE-BASED COMPENSATION Stock Option Plans Through 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”). The Employee Stock Option Plan and Director’s Stock Option Plan were terminated in June 2014 and December 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 our 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 June 30, 2019, 200,000 performance awards have been granted under the 2016 Equity Incentive Plan. Stock Options There were no stock options granted during the fiscal years ended June 30, 2019 and 2018. As of June 30, 2019, there was no unrecognized compensation cost under the Former Stock Option Plans as all outstanding stock options are fully vested. The intrinsic value of stock options outstanding and exercisable at June 30, 2019 was approximately $600,000. The following is a summary of stock option activity under the stock option plans for the fiscal years ended June 30, 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 June 30, 54,000 $ 1.86 57,000 $ 1.88 Performance Awards In December 2017, the Compensation Committee of our Board of Directors granted 200,000 performance awards to our employees which 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. We recorded share-based compensation expense of $33,000 and $187,000 for the fiscal years ended June 30, 2019 and 2018, respectively, related to these performance awards. On June 30, 2019, there was approximately $67,000 of unrecognized compensation cost related to these non-vested performance awards expected to be expensed over the weighted-average period of 3.88 years. On July 1, 2018, it was determined by the Compensation Committee of our Board of Directors that the first of five tranches of the performance awards had been achieved and participants were awarded 40,000 shares of common stock. Each participant elected a net issuance to cover their individual withholding taxes and therefore the Company issued 24,727 shares. 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. Our 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 fiscal years ended June 30, 2019 and 2018, shares totaling 2,743 and 6,733, respectively, were purchased pursuant to the ESPP and allocated to participating employees based upon their contributions at weighted average prices of $8.02 and $5.60, respectively. On a cumulative basis, since the inception of the ESPP, employees have purchased a total of 18,866 shares. During the fiscal years ended June 30, 2019 and 2018, we recorded stock compensation expense in the amount of $4,000 and $7,000, respectively, relating to the ESPP.

MAJOR CUSTOMERS & SUPPLIERS

MAJOR CUSTOMERS & SUPPLIERS	12 Months Ended
	Jun. 30, 2019
Risks and Uncertainties [Abstract]
MAJOR CUSTOMERS & SUPPLIERS	10. MAJOR CUSTOMERS & SUPPLIERS Customers that accounted for sales in excess of 10% of our total sales in either of fiscal year 2019 or 2018, is as follows (in thousands, except percentages): Years Ended June 30, 2019 2018 Amount Percent of Total Amount Percent of Total Total revenue $ 27,172 100 % $ 22,465 100 % Customer concentration: Customer 1 $ 17,091 63 % $ 12,530 56 % Customer 2 3,489 13 % 2,625 11 % Customer 3 2,352 8 % 2,232 10 % Total $ 22,932 84 % $ 17,387 77 % Information with respect to accounts receivable from those customers who comprised more than 10% of our gross accounts receivable at either June 30, 2019 or June 30, 2018 is as follows (in thousands, except percentages): June 30, 2019 June 30, 2018 Total gross accounts receivable $ 4,100 100 % $ 2,969 100 % Customer concentration: Customer 1 $ 2,587 63 % $ 1,673 56 % Customer 2 780 19 % 679 23 % Total. $ 3,367 82 % $ 2,352 79 % During fiscal 2019 and 2018, we had two suppliers that accounted for more than 10% of total inventory purchases, as follows (in thousands, except percentages): June 30, 2019 June 30, 2018 Total Inventory Purchases $ 12,234 100 % $ 9,262 100 % Supplier concentration: Portescap $ 2,184 18 % $ 1,578 17 % Fischer Connectors Inc. 1,800 15 % 1,069 12 % Total $ 3,984 33 % $ 2,647 29 % Information with respect to accounts payable due to the suppliers who comprised more than 10% of our accounts payable at either June 30, 2019 or June 30, 2018 is as follows (in thousands, except percentages): June 30, 2019 June 30, 2018 Total accounts payable $ 1,996 100 % $ 1,083 100 % Supplier concentration: Portescap $ 373 19 % $ 183 17 % Fischer Connectors Inc. 304 15 % 30 3 % Total $ 677 34 % $ 213 20 %

NET INCOME PER SHARE

NET INCOME PER SHARE	12 Months Ended
	Jun. 30, 2019
Earnings Per Share [Abstract]
NET INCOME PER SHARE	11. NET INCOME PER SHARE We calculate basic earnings per share by dividing net income by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per share reflects the effects of potentially dilutive securities. The summary of the basic and diluted earnings per share calculations for the years ended June 30, 2019 and 2018 is as follows (in thousands, except per share data): Years Ended June 30, 2019 2018 Basic: Net income $ 4,148 $ 1,621 Weighted average shares outstanding 4,192 4,305 Basic earnings per share $ 0.99 $ 0.38 Diluted: Net income $ 4,148 $ 1,621 Weighted average shares outstanding 4,192 4,305 Effect of dilutive securities – stock options & performance awards 106 40 Weighted average shares used in calculation of diluted earnings per share 4,298 4,345 Diluted earnings per share $ 0.97 $ 0.37

COMMON STOCK

COMMON STOCK	12 Months Ended
	Jun. 30, 2019
Stockholders' Equity Note [Abstract]
COMMON STOCK	12. COMMON STOCK Share Repurchase Program In September 2013, our Board approved a share repurchase program authorizing the Company to repurchase up to 750,000 shares of our common stock. In accordance with, and as part of, this share repurchase program, our Board has approved the adoption of several prearranged share repurchase plans intended to qualify for the safe harbor Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (“10b5-1 Plan” or “Plan”). During the fiscal year ended June 30, 2018, we repurchased 33,026 shares at an aggregate cost, inclusive of fees under the Plan, of $220,000. During the fiscal year ended June 30, 2019, we repurchased 322,068 shares at an aggregate cost, inclusive of fees under the Plan, of $4.0 million. On a cumulative basis, we have repurchased a total of 588,051 shares under the share repurchase program at an aggregate cost, inclusive of fess under the Plan, of $5.1 million. All repurchases under the 10b5-1 Plans were administered through an independent broker. 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 fiscal year ended June 30, 2017, we sold 8,276 shares of common stock at average prices of $6.04 and raised net proceeds of $48,000. The proceeds collected were accounted for as a reduction of the prepaid expenses relating to establishing the ATM. During the fiscal year ended June 30, 2018, during periods when we did not have a 10b5-1 Plan in place, 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 $2.3 million, net of commissions and fees. From the inception of the ATM in February 2017 through December 31, 2017, we sold 340,465 shares of common stock for gross proceeds of $2,311,000 net of commissions and fees paid to Ascendiant totaling $72,000. In December 2017, our Board suspended the ATM indefinitely. Our 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.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Revenue Recognition	Revenue Recognition Revenue from product sales is recognized as promulgated by the Financial Accounting Standards Board (FASB) in Accounting Standards Update (“ASU”) 2014-09 Revenue from Contracts with Customers Revenue from services, typically non-recurring engineering services related to the design or customization of a medical device, is typically recognized over-time. Returns of our product for credit are minimal; accordingly, we do not establish a reserve for product returns at the time of sale.
Estimated Losses on Product Development Services	Estimated Losses on Product Development Services Cost and revenue estimates related to the product development service portions of development and supply contracts are reviewed and updated quarterly. An expected loss on development service contracts is recognized immediately in cost of sales. Owing to the complexity of many of the contracts we have undertaken, the cost estimation process requires significant judgment. It is based upon the knowledge and experience of our project managers, engineers, and finance professionals. Factors that are considered in estimating the cost of work to be completed and ultimate profitability of the fixed price product development portion of development and supply contracts include the nature and complexity of the work to be performed, availability and productivity of labor, the effect of change orders, the availability of materials, performance of subcontractors, and expected costs for specific regulatory approvals.
Warranties	Warranties Certain of our products are sold with a warranty that provides for repairs or replacement of any defective parts for a period, generally one to two years, after the sale. At the time of the sale, we accrue an estimate of the cost of providing the warranty based on prior experience with such factors as return rates and repair costs, which factors are reviewed quarterly. 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 balance sheets. Warranty expenses are included in cost of sales in the accompanying 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.
Cash and Cash Equivalents	Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of ninety days or less to be cash equivalents. At June 30, 2019 and 2018, cash equivalents consisted of investments in money market funds.
Accounts Receivable	Accounts Receivable Trade receivables are stated at their original invoice amounts, less an allowance for doubtful portions of such accounts. Management determines the allowance for doubtful accounts based on facts and circumstances related to specific accounts and the age of accounts. Trade receivables are written off when deemed uncollectible. Recoveries of trade receivables previously reserved are offset against the allowance when received.
Deferred Costs	Deferred Costs Deferred costs reflect costs incurred related to non-recurring engineering services under the terms of the related development and/or supply contracts. These costs get recorded to cost of sales in the period that the revenue is recognized.
Inventories	Inventories Inventories are stated at the lower of cost (first-in, first-out method) or net realizable value. Cost includes materials, labor and manufacturing overhead related to the purchase and production of inventories. Reductions to estimated market value are recorded, and charged to cost of sales, when indicated based on a formula that compares on-hand quantities to both historical usage and estimated demand over the ensuing 12 months from the measurement date. On an on-going basis, we evaluate inventory for obsolescence and slow-moving items. This evaluation includes analysis of historical sales and usage, existing demand, as well as specific factors known to management. As of June 30, 2019, there was approximately $276,000 of inventory in-transit.
Investments	Investments Investments at June 30, 2019 and 2018 consist of marketable equity securities of publicly held companies. The investments were made to realize a reasonable return, although there is no assurance that positive returns will be realized. Investments are marked to market at each measurement date, with unrealized gains and losses, net of income taxes, presented as adjustments to accumulated other comprehensive income or loss. During fiscal 2019, we invested in the common stock of a public company that is listed on the Over-the-Counter market and is thinly traded. This investment was subject to an independent valuation as of June 30, 2019.
Long-lived Assets	Long-lived Assets We review the recoverability of long-lived assets, consisting of equipment and leasehold improvements, when events or changes in circumstances occur that indicate carrying values may not be recoverable. Equipment and leasehold improvements are recorded at historical cost and depreciation is provided using the straight-line method over the following periods: Equipment Three to ten years Leasehold improvements Shorter of the lease term or the asset’s estimated useful life
Intangibles	Intangibles Other intangibles consist of legal fees incurred in connection with patent applications. The legal fees will be amortized over the estimated life of the product(s) that will be utilizing the technology, or expensed immediately in the event the patent office denies the issuance of the patent. The expense associated with the amortization of the patent costs is recognized in research and development costs.
Notes Receivable	Notes Receivable Notes receivable are stated at unpaid principal balance and are subject to impairment losses. Management considers a note impaired when either i) based upon current information or factors it is probable that the principal and interest payments will not be collected, or converted to equity, according to the terms of the secured convertible promissory note or ii) the fair market of the underlying collateral securing the note is less than the book value of the note receivable.
Income Taxes	Income Taxes We recognize deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of our assets and liabilities along with net operating losses and tax credit carryovers. Deferred tax assets at both June 30, 2019 and 2018 consisted primarily of basis differences related to research and development tax credit utilization, accrued expenses, inventories and intangible assets. Significant management judgment is required in determining the provision for income taxes and the recoverability of deferred tax assets. Such determination is based on historical taxable income, with consideration given to estimates of future taxable income and the periods over which deferred tax assets will be recoverable. We record a valuation allowance against deferred tax assets to reduce the net carrying value to an amount that we believe is more likely than not to be realized. When we establish or reduce the valuation allowance against deferred tax assets, the provision for income taxes will increase or decrease, respectively, in the period such determination is made.
Uncertain Tax Positions	Uncertain Tax Positions We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority.
Shipping and Handling	Shipping and Handling Payments from customers for shipping and handling are included in net sales .
Concentration of Credit Risk	Concentration of Credit Risk Financial instruments that potentially subject us to credit risk consist principally of cash, cash equivalents, and trade receivables. We place our cash and cash equivalents with major financial institutions. At June 30, 2019 and 2018, and throughout the fiscal years then ended, we had deposits in excess of federally insured limits. Credit sales are made to original equipment manufacturers and resellers throughout the world, and sales to such customers account for a substantial portion of our trade receivables. While such receivables are not collateralized, we evaluate their collectability based on several factors including customers’ payment histories.
Compensation Plans	Compensation Plans We recognize compensation expense for the share-based awards that vest subject to market conditions under ASC 718 Compensation-Stock Compensation
Use of Estimates	Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Our operations are affected by numerous factors including market acceptance of our products, changes in technologies, and new laws, government regulations and policies. We cannot predict what impact, if any, the occurrence of these or other events might have on our operations. Significant estimates and assumptions made by management include, but are not limited to, revenue recognition, share-based compensation, the allowance for doubtful accounts, accrued warranty expense, inventory valuation, the carrying value of long-lived assets, the recoverability of notes receivable and the recovery of deferred income tax assets.
Basic and Diluted Per Share Information	Basic and Diluted Per Share Information Basic per share amounts are computed on the basis of the weighted-average number of common shares outstanding during each period presented. Diluted per share amounts assume the issuance of all potential common stock equivalents, consisting of outstanding stock options and performance awards as discussed in Note 11, unless the effect of such exercise is to increase income, or decrease loss, per common share.
Fair Value Measurements	Fair Value Measurements Fair value is measured based on the prices that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are based on a three-tier hierarchy that prioritizes the inputs used to measure fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions. Cash and cash equivalents: Investments: Notes receivable: Although the methods above may produce a fair value calculation that may not be indicative of the net realizable value or reflective of future fair values, we believe our valuation methods are appropriate.
Advertising	Advertising Advertising costs are charged to selling or general and administrative expense as incurred and amounted to $2,000 and $36,000 for the fiscal years ended June 30, 2019 and 2018, respectively.
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 our income taxes payable, which consists of uncertain tax positions, from current liabilities to non-current liabilities as prescribed by GAAP. This balance sheet reclassification had no impact on our net income.

COMPOSITION OF CERTAIN FINANC_2

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Tables)	12 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of investments	Investments are stated at market value and consist of the following (in thousands): June 30, June 30, Marketable equity securities – short-term $ 2,649 $ 2,220 Marketable equity securities – long-term 582 — Total Marketable equity securities $ 3,231 $ 2,220
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): June 30, 2019 2018 Raw materials /purchased components $ 3,132 $ 1,878 Work in process 1,511 974 Sub-assemblies /finished components 1,524 1,193 Finished goods 72 348 Total inventory $ 6,239 $ 4,393
Schedule of equipment and leasehold improvements	Equipment and leasehold improvements consist of the following (in thousands): June 30, 2019 2018 Office furnishings and fixtures $ 2,067 $ 1,821 Machinery and equipment 5,119 4,488 Automobiles 21 — Leasehold improvements 2,276 2,170 Total 9,483 8,479 Less: Accumulated depreciation and amortization (6,757 ) (6,724 ) $ 2,726 $ 1,755
Schedule of intangibles	Intangibles consist of the following (in thousands): June 30, June 30, Covenant not to compete $ — $ 30 Patent-related costs 175 164 Total intangibles 175 194 Less accumulated amortization (46 ) (54 ) $ 129 $ 140
Schedule of accrued liabilities	Accrued liabilities consist of the following (in thousands): June 30, 2019 2018 Payroll and related items $ 480 $ 438 Accrued inventory in transit 276 301 Accrued legal and professional fees 130 155 Accrued bonuses 221 109 Warranty 136 107 Accrued losses on development contracts 83 83 Accrued sales, use and excise taxes 2 6 Other 109 67 $ 1,437 $ 1,266

WARRANTY ACCRUAL (Tables)

WARRANTY ACCRUAL (Tables)	12 Months Ended
	Jun. 30, 2019
Product Warranties Disclosures [Abstract]
Schedule of accrual warranty costs	Information relating to the accrual for warranty costs for the years ended June 30, 2019 and 2018 is as follows (in thousands): June 30, 2019 2018 Balance at beginning of year $ 107 $ 159 Accruals during the year 119 102 Change in estimates of prior period accruals (18 ) (97 ) Warranty amortization (72 ) (57 ) Balance at end of year $ 136 $ 107

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Schedule of provision for income taxes	The provision for income taxes consists of the following amounts (in thousands): Years Ended June 30, 2019 2018 Current: Federal $ (140 ) $ 579 State 21 19 Deferred: Federal 1,079 247 State 339 144 Income tax expense $ 1,299 $ 989
Schedule of reconciliation federal statutory income tax rates	The effective income tax rate from income (loss) from continuing operations differs from the United States statutory income tax rates for the reasons set forth in the table below (in thousands, except percentages). Years Ended June 30, 2019 2018 Amount Percent Pretax Income Amount Percent Pretax Income Income before income taxes $ 5,447 100 % $ 2,610 100 % Computed “expected” income tax expense on income before income taxes $ 1,135 21 % $ 719 28 % State tax, net of federal benefit 281 5 % 73 3 % Tax incentives (85 ) (1 %) (47 ) (2 %) Change in valuation allowance 11 — 202 8 % Tax law changes (8 ) — 119 5 % Domestic production deduction 8 — (84 ) (4 %) Other (43 ) (1 %) 7 — Income tax expense $ 1,299 24 % $ 989 38 %
Schedule of deferred income tax assets and liabilities	Significant components of our deferred tax assets and liabilities for federal and state income taxes are as follows (in thousands): June 30, 2019 2018 Deferred tax assets: Federal & State NOL carryforward $ 23 $ 23 Research & other credits 347 1,517 Reserves and accruals 431 438 Stock based compensation 9 55 Inventory 357 371 Other intangibles 37 70 Other 147 48 Total gross deferred tax assets $ 1,351 $ 2,522 Less: valuation allowance (477 ) (368 ) Total deferred tax assets 874 2,154 June 30, 2019 2018 Deferred tax liabilities: Property and equipment, principally due to differing depreciation methods $ (527 ) $ (318 ) Deferred state tax (81 ) (152 ) Other (6 ) (6 ) Total gross deferred tax liabilities (614 ) (476 ) Net deferred tax assets $ 260 $ 1,678
Schedule of accrual unrecognized tax benefits	Information with respect to our accrual for unrecognized tax benefits is as follows (in thousands): June 30, 2019 2018 Unrecognized tax benefits: Beginning balance $ 462 $ 446 Additions based on federal tax positions related to the current year 11 8 Additions based on state tax positions related to the current year 11 8 Additions for tax positions of prior years 6 — Reductions for tax positions of prior years — — Ending balance $ 490 $ 462

NOTES PAYABLE AND FINANCING T_2

NOTES PAYABLE AND FINANCING TRANSACTIONS (Tables)	12 Months Ended
	Jun. 30, 2019
Notes Payable [Abstract]
Schedule of Maturities of Term Loan for Future Fiscal Years	Scheduled maturities of our Term Loan for future fiscal years ending June 30 are as follows (in thousands): Term Fiscal Year: 2020 $ 624 2021 660 2022 697 2023 737 2024 778 Thereafter 1,107 Total principal payments $ 4,603

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Schedule of operating lease minimum lease payments	Rent expense in fiscal 2019 and 2018 was $548,000 and $551,000, respectively. Minimum lease payments for future fiscal years ending June 30 are as follows (in thousands): Operating Fiscal Year: 2020 $ 461 2021 475 2022 489 2023 504 2024 519 Thereafter 1,796 Total minimum lease payments $ 4,244

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	12 Months Ended
	Jun. 30, 2019
Share-based Payment Arrangement [Abstract]
Schedule of summary of stock option activity	The following is a summary of stock option activity under the stock option plans for the fiscal years ended June 30, 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 June 30, 54,000 $ 1.86 57,000 $ 1.88

MAJOR CUSTOMERS & SUPPLIERS (Ta

MAJOR CUSTOMERS & SUPPLIERS (Tables)	12 Months Ended
	Jun. 30, 2019
Risks and Uncertainties [Abstract]
Schedule of sales by major customers	Customers that accounted for sales in excess of 10% of our total sales in either of fiscal year 2019 or 2018, is as follows (in thousands, except percentages): Years Ended June 30, 2019 2018 Amount Percent of Total Amount Percent of Total Total revenue $ 27,172 100 % $ 22,465 100 % Customer concentration: Customer 1 $ 17,091 63 % $ 12,530 56 % Customer 2 3,489 13 % 2,625 11 % Customer 3 2,352 8 % 2,232 10 % Total $ 22,932 84 % $ 17,387 77 %
Schedule of accounts receivable, inventory purchases and accounts payable of major customers and suppliers	Information with respect to accounts receivable from those customers who comprised more than 10% of our gross accounts receivable at either June 30, 2019 or June 30, 2018 is as follows (in thousands, except percentages): June 30, 2019 June 30, 2018 Total gross accounts receivable $ 4,100 100 % $ 2,969 100 % Customer concentration: Customer 1 $ 2,587 63 % $ 1,673 56 % Customer 2 780 19 % 679 23 % Total. $ 3,367 82 % $ 2,352 79 % During fiscal 2019 and 2018, we had two suppliers that accounted for more than 10% of total inventory purchases, as follows (in thousands, except percentages): June 30, 2019 June 30, 2018 Total Inventory Purchases $ 12,234 100 % $ 9,262 100 % Supplier concentration: Portescap $ 2,184 18 % $ 1,578 17 % Fischer Connectors Inc. 1,800 15 % 1,069 12 % Total $ 3,984 33 % $ 2,647 29 % Information with respect to accounts payable due to the suppliers who comprised more than 10% of our accounts payable at either June 30, 2019 or June 30, 2018 is as follows (in thousands, except percentages): June 30, 2019 June 30, 2018 Total accounts payable $ 1,996 100 % $ 1,083 100 % Supplier concentration: Portescap $ 373 19 % $ 183 17 % Fischer Connectors Inc. 304 15 % 30 3 % Total $ 677 34 % $ 213 20 %

NET INCOME PER SHARE (Tables)

NET INCOME PER SHARE (Tables)	12 Months Ended
	Jun. 30, 2019
Earnings Per Share [Abstract]
Schedule of weighted average shares outstanding calculation of basic and diluted per share	The summary of the basic and diluted earnings per share calculations for the years ended June 30, 2019 and 2018 is as follows (in thousands, except per share data): Years Ended June 30, 2019 2018 Basic: Net income $ 4,148 $ 1,621 Weighted average shares outstanding 4,192 4,305 Basic earnings per share $ 0.99 $ 0.38 Diluted: Net income $ 4,148 $ 1,621 Weighted average shares outstanding 4,192 4,305 Effect of dilutive securities – stock options & performance awards 106 40 Weighted average shares used in calculation of diluted earnings per share 4,298 4,345 Diluted earnings per share $ 0.97 $ 0.37

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Property, Plant and Equipment [Line Items]
Inventory in-transit	$ 276
Advertising expense	$ 2	$ 36
Increase in assets and liabilities		$ 3,300
Patent-related costs [Member]
Property, Plant and Equipment [Line Items]
Amortization period of assets	7 years
Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful life	10 years
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Description of estimated useful lives	Shorter of the lease term or the asset’s estimated useful life

COMPOSITION OF CERTAIN FINANC_3

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Aggregate cost	$ 3,780	$ 2,373
Net unrealized gain (loss) on investments		(153)
Gross unrealized losses	549	196
Gross unrealized gains	0	43
Investment in common stock of company affiliated with company board members	938	285
Depreciation expenses	416	522
Retired assets	103	1,200
Depreciated assets	280	359
Amortization expense	$ 22	$ 20

COMPOSITION OF CERTAIN FINANC_4

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Schedule of investments) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Marketable equity securities - short-term	$ 2,649	$ 2,220
Marketable equity securities - long-term	582
Total Marketable equity securities	$ 3,231	$ 2,220

COMPOSITION OF CERTAIN FINANC_5

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Inventory) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Raw materials /purchased components	$ 3,132	$ 1,878
Work in process	1,511	974
Sub-assemblies /finished components	1,524	1,193
Finished goods	72	348
Total inventory	$ 6,239	$ 4,393

COMPOSITION OF CERTAIN FINANC_6

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Schedule of Equipment and leasehold improvements) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
Property, Plant and Equipment [Line Items]
Total	$ 9,483	$ 8,479
Less: Accumulated depreciation and amortization	(6,757)	(6,724)
Property, plant and equipment, net	2,726	1,755
Office Furnishings and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Total	2,067	1,821
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Total	5,119	4,488
Automobiles [Member]
Property, Plant and Equipment [Line Items]
Total	21
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Total	$ 2,276	$ 2,170

COMPOSITION OF CERTAIN FINANC_7

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Intangible Assets) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
Finite-Lived Intangible Assets [Line Items]
Total intangibles	$ 175	$ 194
Less accumulated amortization	(46)	(54)
Intangible assets,net	129	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

COMPOSITION OF CERTAIN FINANC_8

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Accrued liabilities) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Payroll and related items	$ 480	$ 438
Accrued inventory in transit	276	301
Accrued legal and professional fees	130	155
Accrued bonuses	221	109
Warranty	136	107
Accrued losses on development contracts	83	83
Accrued sales, use and excise taxes	2	6
Other	109	67
Total accrued expenses	$ 1,437	$ 1,266

WARRANTY ACCRUAL (Narrative) (D

WARRANTY ACCRUAL (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Product Warranties Disclosures [Abstract]
Warranty expenses	$ 101	$ 5

WARRANTY ACCRUAL (Schedule of a

WARRANTY ACCRUAL (Schedule of accrual warranty costs) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Balance at beginning of year	$ 107	$ 159
Accruals during the year	119	102
Change in estimates of prior period accruals	(18)	(97)
Warranty amortization	(72)	(57)
Balance at end of year	$ 136	$ 107

INCOME TAXES (Narrative) (Detai

INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jan. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Corporate tax rate	21.00%	24.00%	38.00%
Federal statutory rate		21.00%	28.00%
Increase (Decrease) in deferred tax asset valuation allowance		$ 109
Unrecognized tax benefits		490	$ 462	$ 446
States Tax Authority [Member]
Tax credit carryforward		$ 347
Federal Tax Authority [Member]
Federal statutory rate			27.55%

INCOME TAXES (Provision for inc

INCOME TAXES (Provision for income tax expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Current:
Federal	$ (140)	$ 579
State	21	19
Deferred:
Federal	1,079	247
State	339	144
Income tax expense	$ 1,299	$ 989

INCOME TAXES (Effective income

INCOME TAXES (Effective income tax rate on loss from continuing operations) (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Jan. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Income before income taxes		$ 5,447	$ 2,610
Computed "expected" income tax expense on income before income taxes		1,135	719
State tax, net of federal benefit		281	73
Tax incentives		(85)	(47)
Change in valuation allowance		11	202
Tax law changes		(8)	119
Domestic production deduction		8	(84)
Other		(43)	7
Income tax expense		$ 1,299	$ 989
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Income before income taxes		100.00%	100.00%
Computed "expected" income tax expense on income before income taxes		21.00%	28.00%
State tax, net of federal benefit		5.00%	3.00%
Tax incentives		(1.00%)	(2.00%)
Change in valuation allowance			8.00%
Tax law changes			5.00%
Domestic production deduction			(4.00%)
Other		(1.00%)
Income tax expense	21.00%	24.00%	38.00%

INCOME TAXES (Deferred tax asse

INCOME TAXES (Deferred tax assets and liabilities for federal and state income taxes) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
Deferred tax assets:
Federal & State NOL carryforward	$ 23	$ 23
Research & other credits	347	1,517
Reserves and accruals	431	438
Stock based compensation	9	55
Inventory	357	371
Other intangibles	37	70
Other	147	48
Total gross deferred tax assets	1,351	2,522
Less: valuation allowance	(477)	(368)
Total deferred tax assets	874	2,154
Deferred tax liabilities:
Property and equipment, principally due to differing depreciation methods	(527)	(318)
Deferred state tax	(81)	(152)
Other	(6)	(6)
Total gross deferred tax liabilities	(614)	(476)
Net deferred tax assets	$ 260	$ 1,678

INCOME TAXES (Accrual for unrec

INCOME TAXES (Accrual for unrecognized tax benefits) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Beginning balance	$ 462	$ 446
Additions based on federal tax positions related to the current year	11	8
Additions based on state tax positions related to the current year	11	8
Additions for tax positions of prior years	6
Reductions for tax positions of prior years
Ending balance	$ 490	$ 462

NOTES RECEIVABLE (Details)

NOTES RECEIVABLE (Details) - USD ($)	1 Months Ended		3 Months Ended		12 Months Ended
	May 23, 2018	Sep. 20, 2017	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018
FS Special Opportunities I, L.P. [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
Fineline note 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
Sale of collateral securing loan			$ 75,000
Amount in excess of note receivable balance			$ 10,000

NOTES PAYABLE AND FINANCING T_3

NOTES PAYABLE AND FINANCING TRANSACTIONS (Narrative) (Details) - USD ($)	Oct. 02, 2018	Sep. 06, 2018	Apr. 19, 2017	Jul. 21, 2016	Jun. 30, 2019	Jun. 30, 2018
Debt Instrument [Line Items]
Interest expense					$ 220,000	$ 7,000
Cost of equipment					$ 9,483,000	$ 8,479,000
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					$ 4,600,000
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					$ 6,000

NOTES PAYABLE AND FINANCING T_4

NOTES PAYABLE AND FINANCING TRANSACTIONS (Schedule of Maturities of Term Loan for Future Fiscal Years) (Details) $ in Thousands	Jun. 30, 2019USD ($)
Fiscal Year:
2020	$ 624
2021	660
2022	697
2023	737
2024	778
Thereafter	1,107
Total principal payments	$ 4,603

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Rent expense	$ 548	$ 551
401(k) Plan [Member]
Percentage of matching contributions	25.00%
Percentage of maximum employee contributions	5.00%
Compensation expense	$ 42	$ 54
Forfeited match contributions used to reduce match expense	$ 16

COMMITMENTS AND CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES (Schedule of operating lease minimum lease payments) (Details) $ in Thousands	Jun. 30, 2019USD ($)
Fiscal Year:
2020	$ 461
2021	475
2022	489
2023	504
2024	519
Thereafter	1,796
Total minimum lease payments	$ 4,244

SHARE-BASED COMPENSATION (Narra

SHARE-BASED COMPENSATION (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended	12 Months Ended
	Dec. 31, 2017	Sep. 30, 2014	Jun. 30, 2019	Jun. 30, 2018	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
Number of awards granted during period			200,000
Employees Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value of stock options outstanding			$ 600
Intrinsic value of stock options exercisable			600
ESPP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate share-based compensation expense			$ 4	$ 7
Description of plan		Offering and purchase periods of six months, and bases the pricing to purchase shares of our common stock on a formula so as to result in a per share purchase price that approximates a 15% discount from the market price of a share of our common stock at the end of the purchase period.
Number of shares reserved for future issuance		704,715
Number of shares purchased and allocated to employee (in shares)			2,743	6,733
Exercise price (in dollars per share)			$ 8.02	$ 5.60
Number of shares options purchased (in shares)			18,866
Performance Award [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate share-based compensation expense			$ 33	$ 187
Number of awards granted during period	200,000		40,000
Period for award description			Completion of service periods that range from 7 months to 9.5 years at inception and the achievement of our common stock trading at certain pre-determined prices.
Unrecognized compensation cost			$ 67
Weighted-average period			3 years 10 months 17 days
Weighted average fair value			$ 4.46
Number of shares issued			24,727

SHARE-BASED COMPENSATION (Summa

SHARE-BASED COMPENSATION (Summary of Stock Option Activity) (Details) - $ / shares	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
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
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding at beginning of period (in dollars per share)	$ 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 & SUPPLIERS (Sa

MAJOR CUSTOMERS & SUPPLIERS (Sales, Accounts receivable, Inventory Purchases and Accounts Payable) (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Concentration Risk [Line Items]
Total revenue	$ 27,172	$ 22,465
Percentage of concentrations risk	100.00%	100.00%
Total accounts payable	$ 1,996	$ 1,083
Accounts Receivable [Member]
Concentration Risk [Line Items]
Total gross accounts receivable	$ 4,100	$ 2,969
Percentage of concentrations risk	100.00%	100.00%
Accounts Receivable [Member] | Customer 1 [Member]
Concentration Risk [Line Items]
Total gross accounts receivable	$ 2,587	$ 1,673
Percentage of concentrations risk	63.00%	56.00%
Accounts Receivable [Member] | Customer 2 [Member]
Concentration Risk [Line Items]
Total gross accounts receivable	$ 780	$ 679
Percentage of concentrations risk	19.00%	23.00%
Accounts Receivable [Member] | Customer [Member]
Concentration Risk [Line Items]
Total gross accounts receivable	$ 3,367	$ 2,352
Percentage of concentrations risk	82.00%	79.00%
Sales [Member] | Customer 1 [Member]
Concentration Risk [Line Items]
Total revenue	$ 17,091	$ 12,530
Percentage of concentrations risk	63.00%	56.00%
Sales [Member] | Customer 2 [Member]
Concentration Risk [Line Items]
Total revenue	$ 3,489	$ 2,625
Percentage of concentrations risk	13.00%	11.00%
Sales [Member] | Customer [Member]
Concentration Risk [Line Items]
Total revenue	$ 22,932	$ 17,387
Percentage of concentrations risk	84.00%	77.00%
Sales [Member] | Customer 3 [Member]
Concentration Risk [Line Items]
Total revenue	$ 2,352	$ 2,232
Percentage of concentrations risk	8.00%	10.00%
Accounts Payable [Member]
Concentration Risk [Line Items]
Percentage of concentrations risk	100.00%	100.00%
Total accounts payable	$ 1,996	$ 1,083
Accounts Payable [Member] | Portescap [Member]
Concentration Risk [Line Items]
Percentage of concentrations risk	19.00%	17.00%
Total accounts payable	$ 373	$ 183
Accounts Payable [Member] | Fischer Connectors Inc. [Member]
Concentration Risk [Line Items]
Percentage of concentrations risk	15.00%	3.00%
Total accounts payable	$ 304	$ 30
Accounts Payable [Member] | Supplier [Member]
Concentration Risk [Line Items]
Percentage of concentrations risk	34.00%	20.00%
Total accounts payable	$ 677	$ 213
Inventory Purchases [Member]
Concentration Risk [Line Items]
Percentage of concentrations risk	100.00%	100.00%
Total Inventory Purchases	$ 12,234	$ 9,262
Inventory Purchases [Member] | Portescap [Member]
Concentration Risk [Line Items]
Percentage of concentrations risk	18.00%	17.00%
Total Inventory Purchases	$ 2,184	$ 1,578
Inventory Purchases [Member] | Fischer Connectors Inc. [Member]
Concentration Risk [Line Items]
Percentage of concentrations risk	15.00%	12.00%
Total Inventory Purchases	$ 1,800	$ 1,069
Inventory Purchases [Member] | Supplier [Member]
Concentration Risk [Line Items]
Percentage of concentrations risk	33.00%	29.00%
Total Inventory Purchases	$ 3,984	$ 2,647

NET INCOME PER SHARE (Details)

NET INCOME PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Basic:
Net income	$ 4,148	$ 1,621
Weighted average shares outstanding	4,192,365	4,304,602
Basic earnings per share	$ 0.99	$ 0.38
Diluted:
Net income	$ 4,148	$ 1,621
Weighted average shares outstanding	4,192,365	4,304,602
Effect of dilutive securities - stock options & performance awards	106,000	40,000
Weighted average shares used in calculation of diluted earnings per share	4,298,332	4,344,765
Diluted earnings per share	$ 0.97	$ 0.37

COMMON STOCK (Details)

COMMON STOCK (Details) - USD ($) $ / shares in Units, $ in Thousands	11 Months Ended	12 Months Ended
	Dec. 31, 2017	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017	Sep. 30, 2013
Class of Stock [Line Items]
Shares repurchased during the year, value		$ 3,984	$ 220
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	340,465		332,189	8,276
Proceeds from sale of shares	$ 2,311		$ 2,300	$ 48
Average share price			$ 7.02	$ 6.04
Fees paid to Ascendiant	$ 72
Share Repurchase Program [Member] | 10b5-1 Plan [Member]
Class of Stock [Line Items]
Number of authorized shares to repurchase, shares					750,000
Shares repurchased during the year, number of shares		322,068	33,026
Shares repurchased during the year, value		$ 4,000	$ 220
Share Repurchase Program [Member] | 10b5-1 Plan [Member] | Cumulative basis [Member]
Class of Stock [Line Items]
Shares repurchased during the year, number of shares		588,051
Shares repurchased during the year, value		$ 5,100