Pro-Dex (PDEX) 10-Q 6 Feb 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2019	Feb. 04, 2020
Document And Entity Information
Entity Registrant Name	PRO DEX INC
Entity Central Index Key	0000788920
Document Type	10-Q
Document Period End Date	Dec. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity's Reporting Status Current	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		3,872,756
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2020
Entity Incorporation State Country Code	CO
Entity File Number	0-14942

CONDENSED BALANCE SHEETS (Unaud

CONDENSED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Dec. 31, 2019	Jun. 30, 2019
Current Assets:
Cash and cash equivalents	$ 6,175	$ 7,742
Investments	3,540	2,649
Accounts receivable, net of allowance for doubtful accounts of $17 and $0 at December 31, 2019 and at June 30, 2019, respectively	2,683	4,100
Deferred costs	492	430
Inventory	7,808	6,239
Prepaid expenses and other current assets	193	623
Total current assets	20,891	21,783
Equipment and leasehold improvements, net	2,768	2,726
Right of use asset, net	3,107
Intangibles, net	145	129
Deferred income taxes, net	163	260
Investments	1,610	582
Other assets	42	40
Total assets	28,726	25,520
Current Liabilities:
Accounts payable	1,672	1,996
Accrued expenses	1,287	1,437
Deferred revenue	360	215
Note payable and capital lease obligations	633	622
Total current liabilities	3,952	4,270
Deferred rent		146
Lease liability, net of current portion	2,937
Income taxes payable	352	162
Notes and capital leases payable, net of current portion	3,613	3,934
Total non-current liabilities	6,902	4,242
Total liabilities	10,854	8,512
Shareholders' equity:
Common shares; no par value; 50,000,000 shares authorized; 3,884,098 and 4,039,491 shares issued and outstanding at December 31, 2019 and June 30, 2019, respectively	13,634	15,815
Accumulated other comprehensive income (loss)	100	(549)
Retained earnings	4,138	1,742
Total shareholders' equity	17,872	17,008
Total liabilities and shareholders' equity	$ 28,726	$ 25,520

CONDENSED BALANCE SHEETS (Paren

CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2019	Jun. 30, 2019
Statement of Financial Position [Abstract]
Accounts receivable, net of allowance for doubtful accounts	$ 17	$ 0
Common shares, no par value (in dollars per share)
Common shares, authorized	50,000,000	50,000,000
Common shares, issued	3,884,098	4,039,491
Common shares, outstanding	3,884,098	4,039,491

CONDENSED STATEMENTS OF OPERATI

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Income Statement [Abstract]
Net sales	$ 7,961	$ 6,399	$ 15,201	$ 13,314
Cost of sales	5,097	4,150	9,557	8,339
Gross profit	2,864	2,249	5,644	4,975
Operating (income) expenses:
Selling expenses	135	97	277	130
General and administrative expenses	664	633	1,327	1,197
Gain from disposal of equipment				(7)
Research and development costs	397	326	881	735
Total operating expenses	1,196	1,056	2,485	2,055
Operating income	1,668	1,193	3,159	2,920
Interest expense	(63)	(69)	(122)	(89)
Interest and other income	33	93	68	168
Gain on sale of investments		356		356
Income from operations before income taxes	1,638	1,573	3,105	3,355
Income tax expense	(389)	(394)	(751)	(827)
Net income	1,249	1,179	2,354	2,528
Other comprehensive income (loss), net of tax:
Unrealized income (loss) from marketable equity investments	705	(494)	649	(349)
Comprehensive income	$ 1,954	$ 685	$ 3,003	$ 2,179
Basic net income per share:
Net income	$ 0.32	$ 0.28	$ 0.59	$ 0.59
Diluted net income per share:
Net income	$ 0.31	$ 0.28	$ 0.58	$ 0.59
Weighted average common shares outstanding:
Basic	3,950	4,195	3,979	4,263
Diluted	4,053	4,242	4,082	4,303
Common shares outstanding	3,884	4,143	3,884	4,143

CONDENSED STATEMENTS OF SHAREHO

CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Common shares [Member]	Accumulated other comprehensive income (loss) [Member]	Retained earnings/(accumulated deficit) [Member]	Total
Balance at beginning at Jun. 30, 2018	$ 19,835	$ (153)	$ (2,406)	$ 17,276
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation expense	18
Share repurchases	(2,560)
Shares withheld from common stock issued to employees to pay employee payroll taxes	(101)
Exercise of stock options	7
Exercise of stock options (in shares)				3,000
ESPP shares issued	10
Cumulative effect of change in accounting principle
Net income			2,528	$ 2,528
Net change in unrealized gain (loss) from marketable securities, net of taxes		(196)
Balance at end at Dec. 31, 2018	17,209	(349)	122	16,982
Balance at beginning at Sep. 30, 2018	18,639	145	(1,057)	17,727
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation expense	8
Share repurchases	(1,445)
Shares withheld from common stock issued to employees to pay employee payroll taxes
Exercise of stock options	7
ESPP shares issued
Cumulative effect of change in accounting principle
Net income			1,179	1,179
Net change in unrealized gain (loss) from marketable securities, net of taxes		(494)
Balance at end at Dec. 31, 2018	17,209	(349)	122	16,982
Balance at beginning at Jun. 30, 2019	15,815	(549)	1,742	$ 17,008
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation expense	19
Share repurchases	(2,215)
Shares withheld from common stock issued to employees to pay employee payroll taxes
Exercise of stock options
Exercise of stock options (in shares)
ESPP shares issued	15
Cumulative effect of change in accounting principle			42
Net income			2,354	$ 2,354
Net change in unrealized gain (loss) from marketable securities, net of taxes		649
Balance at end at Dec. 31, 2019	13,634	100	4,138	17,872
Balance at beginning at Sep. 30, 2019	15,161	(605)	2,889	17,444
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation expense	8
Share repurchases	(1,535)
Shares withheld from common stock issued to employees to pay employee payroll taxes
Exercise of stock options
ESPP shares issued
Cumulative effect of change in accounting principle
Net income			1,249	1,249
Net change in unrealized gain (loss) from marketable securities, net of taxes		705
Balance at end at Dec. 31, 2019	$ 13,634	$ 100	$ 4,138	$ 17,872

CONDENSED STATEMENTS OF CASH FL

CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 2,354	$ 2,528
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	282	195
Gain from disposal of equipment		(7)
Share-based compensation	19	18
Non-cash lease expense	22
Amortization of loan fees	4
Gain on sale of investments		(356)
Deferred income taxes	97	742
Bad debt expense (recovery)	17	(13)
Changes in operating assets and liabilities:
Accounts receivable and other current receivables	1,400	(838)
Deferred costs	(62)	(143)
Inventory	(1,569)	(147)
Prepaid expenses and other assets	430	(46)
Accounts payable and accrued expenses	(771)	(301)
Deferred revenue	145	(1)
Income taxes payable	190	(123)
Net cash provided by operating activities	2,558	1,508
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of investments	(1,271)	(1,365)
Purchases of equipment and leasehold improvements	(317)	(540)
Proceeds from sale of investments		1,905
Proceeds from sale of equipment		7
Increase in intangibles	(23)	(14)
Net cash used in investing activities	(1,611)	(7)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchases of common stock	(2,215)	(2,560)
Proceeds from exercise of options and ESPP contributions	15	17
Payment of employee payroll taxes on net issuance of common stock		(101)
Proceeds from Minnesota Bank & Trust long-term debt, net of fees		4,942
Principal payments on notes payable and capital lease	(314)	(116)
Net cash provided by (used in) financing activities	(2,514)	2,182
Net increase (decrease) in cash and cash equivalents	(1,567)	3,683
Cash and cash equivalents, beginning of period	7,742	5,188
Cash and cash equivalents, end of period	6,175	8,871
Cash paid during the period for:
Interest	103	66
Income taxes	$ 13	$ 305

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
BASIS OF PRESENTATION	NOTE 1. BASIS OF PRESENTATION The accompanying unaudited condensed financial statements of Pro-Dex, Inc. (“we,” “us,” “our,” “Pro-Dex,” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with applicable rules of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These financial statements should be read in conjunction with the financial statements presented in our Annual Report on Form 10-K for the fiscal year ended June 30, 2019. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. The results of operations for such interim periods are not necessarily indicative of the results that may be expected for the full year. For further information, refer to the financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended June 30, 2019. RECENTLY ADOPTED ACCOUNTING STANDARDS On July 1, 2019, we adopted ASU 2016-02 (Topic 842) “Leases,” using a modified retrospective approach through a cumulative effect adjustment to retained earnings as of the beginning of fiscal 2020. The objective of this update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The impact of adoption was an increase to long-term assets and total liabilities of approximately $3.3 million as of July 1, 2019.

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	6 Months Ended
	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS	NOTE 2. DESCRIPTION OF BUSINESS We specialize in the design, development and manufacture of autoclavable, battery-powered and electric, multi-function surgical drivers and shavers used primarily in the orthopedic and maxocranial facial markets. We have patented adaptive torque-limiting software and proprietary sealing solutions which appeal to our customers, primarily medical device distributors. We also manufacture and sell rotary air motors to a wide range of industries.

COMPOSITION OF CERTAIN FINANCIA

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS	6 Months Ended
	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS	NOTE 3. COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS Inventory Inventory is stated at the lower of cost (first-in, first-out) or net realizable value and consists of the following (in thousands): December 31, June 30, Raw materials /purchased components $ 3,649 $ 3,132 Work in process 2,394 1,511 Sub-assemblies/finished components 1,586 1,524 Finished goods 179 72 Total inventory $ 7,808 $ 6,239 Investments Investments are stated at market value and consist of the following (in thousands): December 31, June 30, Marketable equity securities - short-term $ 3,540 $ 2,649 Marketable equity securities - long-term 1,610 582 Total marketable equity securities $ 5,150 $ 3,231 Investments at December 31, 2019 and June 30, 2019 had an aggregate cost basis of $5,050,000 and $3,780,000, respectively. At December 31, 2019, the investments included net unrealized gains of $100,000 (gross unrealized gains of $329,000 offset by gross unrealized losses of $229,000). During the quarter ended December 31, 2019, we incurred net unrealized gains of $705,000. At June 30, 2019, the investments included net unrealized losses of $549,000 and no unrealized gains. Of the total marketable equity securities at December 31, 2019 and June 30, 2019, $1,410,000 and $938,000, 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 common stock was purchased through 10b5-1 Plans, and the purchased preferred stock was purchased through the exercise of issued warrants and in both cases, in accordance with our internal policies regarding the approval of related party transactions, purchases were approved by our three Board members that are not affiliated with Air T, Inc. We invest surplus cash from time to time through our Investment Committee, which is comprised of one management director, Mr. Van Kirk, and two non-management directors, Mr. Cabillot and Mr. Swenson, who chairs the committee. Both Mr. Cabillot and Mr. Swenson are active investors with extensive portfolio management expertise. We leverage the experience of these committee members to make investment decisions for the investment of our surplus operating capital or borrowed funds. Additionally, many of our securities holdings include stocks of public companies that either Messrs. Swenson or Cabillot or both may own from time to time either individually or through the investment funds that they manage, or other companies whose boards they sit on, such as Air T, Inc. Intangibles Intangibles consist of the following (in thousands): December 31, June 30, Patent-related costs $ 198 $ 175 Less accumulated amortization (53 ) (46 ) $ 145 $ 129 Patent-related costs consist of legal fees incurred in connection with both patent applications and a patent issuance, and will be amortized over the estimated life of the product(s) that is or will be utilizing the technology, or expensed immediately in the event the patent office denies the issuance of the patent. Since we do not know when, or if, our patent applications will be issued, the future amortization expense is not predictable.

WARRANTY

WARRANTY	6 Months Ended
	Dec. 31, 2019
Product Warranties Disclosures [Abstract]
WARRANTY	NOTE 4. WARRANTY The warranty accrual is based on historical costs of warranty repairs and expected future identifiable warranty expenses and is included in accrued expenses in the accompanying balance sheets. As of December 31, and June 30, 2019, the warranty reserve amounted to $141,000 and $136,000, respectively. 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. Warranty expense relating to new product sales and changes to estimates for the three months ended December 31, 2019 and 2018 was $44,000 and $16,000, respectively, and for the six months ended December 31, 2019 and 2018 was $56,000 and $30,000, respectively. Information regarding the accrual for warranty costs for the three and six months ended December 31, 2019 and 2018 are as follows (in thousands): As of and for the 2019 2018 Beginning balance $ 126 $ 95 Accruals during the period 28 25 Changes in estimates of prior period warranty accruals 16 (9 ) Warranty amortization (29 ) (12 ) Ending balance $ 141 $ 99 As of and for the 2019 2018 Beginning balance $ 136 $ 107 Accruals during the period 53 54 Changes in estimates of prior period warranty accruals 3 (24 ) Warranty amortization (51 ) (38 ) Ending balance $ 141 $ 99

NET INCOME PER SHARE

NET INCOME PER SHARE	6 Months Ended
	Dec. 31, 2019
Earnings Per Share [Abstract]
NET INCOME PER SHARE	NOTE 5. NET INCOME PER SHARE The Company calculates basic net income per share by dividing net income by the weighted-average number of common shares outstanding during the reporting period. The weighted-average number of common shares outstanding reflects the effects of potentially dilutive securities, in income generating periods, which consist entirely of outstanding stock options and performance awards. The following table presents reconciliations of the numerators and denominators of the basic and diluted earnings per share computations for net income. In the tables below, income amounts represent the numerator, and share amounts represent the denominator (in thousands, except per share amounts): Three Months Ended Six Months Ended 2019 2018 2019 2018 Basic: Net income $ 1,249 $ 1,179 $ 2,354 $ 2,528 Weighted average shares outstanding 3,950 4,195 3,979 4,263 Basic income per share $ 0.32 $ 0.28 $ 0.59 $ 0.59 Diluted: Net income $ 1,249 $ 1,179 $ 2,354 $ 2,528 Weighted average shares outstanding 3,950 4,195 3,979 4,263 Effect of dilutive securities – stock options 103 47 103 40 Weighted average shares used in calculation of diluted earnings per share 4,053 4,242 4,082 4,303 Diluted income per share $ 0.31 $ 0.28 $ 0.58 $ 0.59

INCOME TAXES

INCOME TAXES	6 Months Ended
	Dec. 31, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 6. INCOME TAXES Deferred income taxes are provided on a liability method whereby deferred tax assets and liabilities are recognized for temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Significant management judgment is required in determining our provision for income taxes and the recoverability of our deferred tax assets. Such determination is based primarily on our historical taxable income, with some consideration given to our estimates of future taxable income by jurisdictions in which we operate and the period over which our deferred tax assets would be recoverable. As of December 31, 2019, we have accrued $479,000 of unrecognized tax benefits related to federal and state income tax matters. None of this balance is expected to reduce the Company’s income tax expense if recognized. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): As of and for the 2019 2018 Beginning balance $ 490 $ 462 Additions based on tax positions related to the current year 12 10 Reductions based on tax positions related to prior years (23 ) — Ending balance $ 479 $ 472 We recognize accrued interest and penalties related to unrecognized tax benefits when applicable. As of December 31, 2019, no interest or penalties applicable to our unrecognized tax benefits have been accrued since we have sufficient tax attributes available to fully offset any potential assessment of additional tax. We are subject to U.S. federal income tax, as well as income tax of multiple state tax jurisdictions. We are currently open to audit under the statute of limitations by the Internal Revenue Service for the years ended June 30, 2016 and later. Our state income tax returns are open to audit under the statute of limitations for the years ended June 30, 2015 and later. We do not anticipate a significant change to the total amount of unrecognized tax benefits within the next 12 months.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	6 Months Ended
	Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
SHARE-BASED COMPENSATION	NOTE 7. SHARE-BASED COMPENSATION Through June 2014, we had two equity compensation plans, the Second Amended and Restated 2004 Stock Option Plan (the “Employee Stock Option Plan”) and the Amended and Restated 2004 Directors’ Stock Option Plan (the “Directors’ Stock Option Plan”) (collectively, the “Former Stock Option Plans”). 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 December 31, 2019, we have granted performance awards under the 2016 Equity Incentive Plan for up to 200,000 shares of our common stock, of which 40,000 shares have vested as further described below under the heading “Performance Awards.” Stock Options No options were granted during the three or six months ended December 31, 2019 and 2018. As of December 31, 2019, there was no unrecognized compensation cost under the Former Stock Option Plans, as all outstanding stock options are fully vested. As of December 31, 2019, the options outstanding had a weighted average remaining contractual life of 1.5 years and an intrinsic value of $847,000. Following is a summary of stock option activity for the six months ended December 31, 2019 and 2018: 2019 2018 Number of Shares Weighted-Average Number of Shares Weighted-Average Outstanding at July 1, 54,000 $ 1.86 57,000 $ 1.88 Options granted — — — — Options exercised — — (3,000 ) 2.14 Options forfeited — — — — Outstanding at end of period 54,000 $ 1.86 54,000 $ 1.86 Stock Options Exercisable at December 31, 54,000 $ 1.86 54,000 $ 1.86 Performance Awards In December 2017, the Compensation Committee of the Board of Directors granted performance awards to our employees, for an aggregate of up to 200,000 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 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 $8,000 for each of the three months ended December 31, 2019 and 2018, and $16,000 for each of the six months ended December 31, 2019 and 2018, related to these performance awards. On December 31, 2019, there was approximately $50,000 of unrecognized compensation cost related to these non-vested performance awards expected to be expensed over the weighted-average period of 3.37 years. On July 1, 2018, it was determined by the Compensation Committee of our Board of Directors that the first of five tranches of 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 we issued 24,727 shares of common stock and paid $101,000 of participant related payroll tax liabilities. Employee Stock Purchase Plan In September 2014, our Board approved the establishment of an Employee Stock Purchase Plan (the “ESPP”), which was approved by our shareholders at the December 3, 2014 Annual Meeting. The ESPP conforms to the provisions of Section 423 of the Internal Revenue Code, has coterminous offering and purchase periods of six months, and bases the pricing to purchase shares of our common stock on a formula so as to result in a per share purchase price that approximates a 15% discount from the market price of a share of our common stock at the end of the purchase period. The Board of Directors also approved the provision that shares formerly reserved for issuance under the Former Stock Option Plans in excess of shares issuable pursuant to outstanding options under those plans, aggregating 704,715 shares, be reserved for issuance pursuant to the ESPP. During the three months ended December 31, 2019 and 2018, we did not record any share-based compensation expense relating to the ESPP, due to the fact that no six-month offering period ended during either quarter. During the six months ended December 31, 2019 and 2018, 1,292 and 1,820 shares of our common stock were purchased under the ESPP, respectively, and allocated to employees based upon their contributions at prices of $11.76 and $5.51, respectively, per share. On a cumulative basis, since the inception of the ESPP, employees have purchased a total of 20,158 shares of our common stock. During the six months ended December 31, 2019 and 2018, we recorded share-based compensation expense in the amount of $3,000 and $2,000, respectively, relating to the ESPP.

MAJOR CUSTOMERS AND SUPPLIERS

MAJOR CUSTOMERS AND SUPPLIERS	6 Months Ended
	Dec. 31, 2019
Risks and Uncertainties [Abstract]
MAJOR CUSTOMERS AND SUPPLIERS	NOTE 8. MAJOR CUSTOMERS AND SUPPLIERS Information with respect to customers that accounted for sales in excess of 10% of our total sales in either of the three-month and the six-month periods ended December 31, 2019 and 2018 is as follows (in thousands, except percentages): Three Months Ended December 31, 2019 2018 Amount Percent of Amount Percent of Net sales $ 7,961 100 % $ 6,399 100 % Customer concentration: Customer 1 $ 5,655 71 % $ 4,135 64 % Customer 2 797 10 % 365 6 % Total $ 6,452 81 % $ 4,500 70 % Six Months Ended December 31, 2019 2018 Amount Percent of Amount Percent of Net sales $ 15,201 100 % $ 13,314 100 % Customer concentration: Customer 1 $ 11,067 74 % $ 8,449 64 % Customer 2 1,340 9 % 845 6 % Total $ 12,407 82 % $ 9,294 70 % Information with respect to accounts receivable from those customers who comprised more than 10% of our gross accounts receivable at either December 31, 2019 or June 30, 2019, is as follows (in thousands, except percentages): December 31, 2019 June 30, 2019 Total gross accounts receivable $ 2,700 100 % $ 4,100 100 % Customer concentration: Customer 1 $ 1,754 65 % $ 2,587 63 % Customer 3 237 9 % 780 19 % Total $ 1,991 74 % $ 3,367 82 % During the three months ended December 31, 2019 and 2018, we had two suppliers accounting for 10% or more of total inventory purchases. During the six months ended December 31, 2019, we had two suppliers that accounted for more than 10% of our total inventory purchases, and during the six months ended December 31, 2018, we had one supplier that accounted for more than 10% of our total inventory purchases. Amounts owed to the fiscal 2020 significant suppliers at December 31, 2019 totaled $306,000 and $117,000, respectively, and at June 30, 2019 totaled $304,000 and $373,000, respectively.

NOTES PAYABLE AND FINANCING TRA

NOTES PAYABLE AND FINANCING TRANSACTIONS	6 Months Ended
	Dec. 31, 2019
Notes Payable [Abstract]
NOTES PAYABLE AND FINANCING TRANSACTIONS	NOTE 9. NOTES PAYABLE AND FINANCING TRANSACTIONS Minnesota Bank & Trust On September 6, 2018, we entered into a Credit Agreement with Minnesota Bank & Trust, a Minnesota state banking corporation (“MBT”), providing for a $5,000,000 term loan (the “Term Loan”) as well as a $2,000,000 revolving loan (the “Revolving Loan” and together with the Term Loan, collectively the “Loans”), evidenced by a Term Note A and a Revolving Credit Note made by us in favor of MBT. The Loans are secured by substantially all of our assets pursuant to a Security Agreement entered into on September 6, 2018 between us and MBT. We paid loan origination fees to MBT in the amount of $60,000. The Term Loan matures on October 1, 2025 and bears interest at a fixed rate of 5.53% per annum. An initial payment of interest only in the amount of $18,433 was paid on October 1, 2018. Commencing November 1, 2018 and continuing on the first day of each subsequent month thereafter until the maturity date, we are required to make payments of principal and interest on the Term Loan of approximately $72,000, plus any additional accrued and unpaid interest through the date of payment. The balance owed on the Term Loan at December 31, 2019 is $4.2 million, net of unamortized loan fees. The Revolving Loan had an original maturity date of September 6, 2019 and has since been extended to November 6, 2020 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). As we have yet to borrow under the Revolving Loan, the balance owed under it at December 31, 2019 was $0. 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.

COMMON STOCK

COMMON STOCK	6 Months Ended
	Dec. 31, 2019
Stockholders' Equity Note [Abstract]
COMMON STOCK	NOTE 10. COMMON STOCK Share Repurchase Program In December 2019, our Board approved a new share repurchase program authorizing us to repurchase up to 1 million shares of our common stock, as the prior repurchase plan authorized by the Board in 2013 was nearing completion. In accordance with, and as part of, these share repurchase programs, our Board approved the adoption of several prearranged share repurchase plans intended to qualify for the safe harbor provided by Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (“10b5-1 Plan” or “Plan”). During the three and six months ended December 31, 2019, we repurchased 106,897 and 156,685 shares, respectively, at an aggregate cost, inclusive of fees under the plan, of $1,535,000 and $2,215,000, respectively. During the three and six months ended December 31, 2018, we repurchased 109,366 and 217,454 shares, respectively, at an aggregate cost, inclusive of fees under the plan, of $1,445,000 and $2,560,000, respectively. On a cumulative basis, since implementation of the share repurchase program in 2013, we have repurchased a total of 744,736 shares under the share repurchase program at an aggregate cost of $7.3 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 three and six months ended December 31, 2019 and 2018 we did not issue any shares under the ATM. From the inception of the ATM in February 2017 through December 31, 2017, during periods when we did not make purchases under our share repurchase program, 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, the Board suspended the ATM indefinitely. The Board has the discretion to reactivate the ATM prior to February 16, 2020, the expiration of the ATM Agreement, unless earlier terminated by Ascendiant or us. However, we do not anticipate that the ATM will be reactivated prior to its expiration.

LEASES

LEASES	6 Months Ended
	Dec. 31, 2019
Leases [Abstract]
LEASES	NOTE 11. LEASES Effective July 1, 2019, we adopted the new lease accounting standard using the modified retrospective method of applying the new standard at the adoption date. In addition, we elected the practical expedient which allowed us to carry forward the historical lease classification of our sole operating lease for our corporate office, which includes our manufacturing and research and development facilities. Adoption of this standard resulted in the recording of net operating lease right-of-use (“ROU”) asset and corresponding operating lease liability of $3.3 million. Our financial position for reporting periods beginning on or after July 1, 2019 is presented under the new guidance, while prior period amounts are not adjusted and continue to be reported in accordance with previous guidance. Our operating lease ROU asset and long-term liability are presented separately on our Condensed Balance Sheet. The current portion of our operating lease liability as of December 31, 2019, in the amount of $297,000, is presented within accrued expenses on the Condensed Balance Sheet. As of December 31, 2019, the maturity of our lease liability is as follows: Operating Lease Fiscal Year: 2020 $ 232 2021 475 2022 489 2023 504 2024 519 Thereafter 1,796 Total lease payments 4,015 Less imputed interest: (782 ) Total $ 3,233 As of December 31, 2019, our operating lease has a remaining lease term of seven years and nine months and an imputed interest rate of 5.3%. Cash paid for amounts included in the lease liability for the three and six months ended December 31, 2019 was $116,000 and $229,000, respectively. As previously disclosed in our 2019 Annual Report on Form 10-K and under the previous lease accounting standard, future minimum lease payments for our only operating lease having an initial or remaining noncancellable lease term in excess of one year would have been as follows: Operating Leases at June 30, 2019 Fiscal Year: 2020 $ 461 2021 475 2022 489 2023 504 2024 519 Thereafter 1,796 Total minimum lease payments $ 4,244

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 12. COMMITMENTS AND CONTINGENCIES Legal Matters We are from time to time a party to various legal proceedings incidental to our business. There can be no certainty, however, that we may not ultimately incur liability or that such liability will not be material and adverse.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	6 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Recently Adopted Accounting Standards	RECENTLY ADOPTED ACCOUNTING STANDARDS On July 1, 2019, we adopted ASU 2016-02 (Topic 842) “Leases,” using a modified retrospective approach through a cumulative effect adjustment to retained earnings as of the beginning of fiscal 2020. The objective of this update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The impact of adoption was an increase to long-term assets and total liabilities of approximately $3.3 million as of July 1, 2019.

COMPOSITION OF CERTAIN FINANC_2

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Tables)	6 Months Ended
	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of inventory	Inventory is stated at the lower of cost (first-in, first-out) or net realizable value and consists of the following (in thousands): December 31, June 30, Raw materials /purchased components $ 3,649 $ 3,132 Work in process 2,394 1,511 Sub-assemblies/finished components 1,586 1,524 Finished goods 179 72 Total inventory $ 7,808 $ 6,239
Schedule of investments	Investments are stated at market value and consist of the following (in thousands): December 31, June 30, Marketable equity securities - short-term $ 3,540 $ 2,649 Marketable equity securities - long-term 1,610 582 Total marketable equity securities $ 5,150 $ 3,231
Schedule of intangibles	Intangibles consist of the following (in thousands): December 31, June 30, Patent-related costs $ 198 $ 175 Less accumulated amortization (53 ) (46 ) $ 145 $ 129

WARRANTY (Tables)

WARRANTY (Tables)	6 Months Ended
	Dec. 31, 2019
Product Warranties Disclosures [Abstract]
Schedule of accrual warranty costs	Information regarding the accrual for warranty costs for the three and six months ended December 31, 2019 and 2018 are as follows (in thousands): As of and for the 2019 2018 Beginning balance $ 126 $ 95 Accruals during the period 28 25 Changes in estimates of prior period warranty accruals 16 (9 ) Warranty amortization (29 ) (12 ) Ending balance $ 141 $ 99 As of and for the 2019 2018 Beginning balance $ 136 $ 107 Accruals during the period 53 54 Changes in estimates of prior period warranty accruals 3 (24 ) Warranty amortization (51 ) (38 ) Ending balance $ 141 $ 99

NET INCOME PER SHARE (Tables)

NET INCOME PER SHARE (Tables)	6 Months Ended
	Dec. 31, 2019
Earnings Per Share [Abstract]
Schedule of reconciliations of the numerators and denominators of the basic and diluted earnings (loss) per share computations for net income (loss)	The following table presents reconciliations of the numerators and denominators of the basic and diluted earnings per share computations for net income. In the tables below, income amounts represent the numerator, and share amounts represent the denominator (in thousands, except per share amounts): Three Months Ended Six Months Ended 2019 2018 2019 2018 Basic: Net income $ 1,249 $ 1,179 $ 2,354 $ 2,528 Weighted average shares outstanding 3,950 4,195 3,979 4,263 Basic income per share $ 0.32 $ 0.28 $ 0.59 $ 0.59 Diluted: Net income $ 1,249 $ 1,179 $ 2,354 $ 2,528 Weighted average shares outstanding 3,950 4,195 3,979 4,263 Effect of dilutive securities – stock options 103 47 103 40 Weighted average shares used in calculation of diluted earnings per share 4,053 4,242 4,082 4,303 Diluted income per share $ 0.31 $ 0.28 $ 0.58 $ 0.59

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Schedule of unrecognized tax benefits	A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): As of and for the 2019 2018 Beginning balance $ 490 $ 462 Additions based on tax positions related to the current year 12 10 Reductions based on tax positions related to prior years (23 ) — Ending balance $ 479 $ 472

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	6 Months Ended
	Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
Schedule of Summary of Stock Option Activity	Following is a summary of stock option activity for the six months ended December 31, 2019 and 2018: 2019 2018 Number of Shares Weighted-Average Number of Shares Weighted-Average Outstanding at July 1, 54,000 $ 1.86 57,000 $ 1.88 Options granted — — — — Options exercised — — (3,000 ) 2.14 Options forfeited — — — — Outstanding at end of period 54,000 $ 1.86 54,000 $ 1.86 Stock Options Exercisable at December 31, 54,000 $ 1.86 54,000 $ 1.86

MAJOR CUSTOMERS AND SUPPLIERS (

MAJOR CUSTOMERS AND SUPPLIERS (Tables)	6 Months Ended
	Dec. 31, 2019
Risks and Uncertainties [Abstract]
Schedule of sales by major customers	Information with respect to customers that accounted for sales in excess of 10% of our total sales in either of the three-month and the six-month periods ended December 31, 2019 and 2018 is as follows (in thousands, except percentages): Three Months Ended December 31, 2019 2018 Amount Percent of Amount Percent of Net sales $ 7,961 100 % $ 6,399 100 % Customer concentration: Customer 1 $ 5,655 71 % $ 4,135 64 % Customer 2 797 10 % 365 6 % Total $ 6,452 81 % $ 4,500 70 % Six Months Ended December 31, 2019 2018 Amount Percent of Amount Percent of Net sales $ 15,201 100 % $ 13,314 100 % Customer concentration: Customer 1 $ 11,067 74 % $ 8,449 64 % Customer 2 1,340 9 % 845 6 % Total $ 12,407 82 % $ 9,294 70 %
Schedule of accounts receivable of major customers	Information with respect to accounts receivable from those customers who comprised more than 10% of our gross accounts receivable at either December 31, 2019 or June 30, 2019, is as follows (in thousands, except percentages): December 31, 2019 June 30, 2019 Total gross accounts receivable $ 2,700 100 % $ 4,100 100 % Customer concentration: Customer 1 $ 1,754 65 % $ 2,587 63 % Customer 3 237 9 % 780 19 % Total $ 1,991 74 % $ 3,367 82 %

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Dec. 31, 2019
Leases [Abstract]
Schedule of Maturities of Lease Liabilities	As of December 31, 2019, the maturity of our lease liability is as follows: Operating Lease Fiscal Year: 2020 $ 232 2021 475 2022 489 2023 504 2024 519 Thereafter 1,796 Total lease payments 4,015 Less imputed interest: (782 ) Total $ 3,233 As of December 31, 2019, our operating lease has a remaining lease term of seven years and nine months and an imputed interest rate of 5.3%. Cash paid for amounts included in the lease liability for the three and six months ended December 31, 2019 was $116,000 and $229,000, respectively. As previously disclosed in our 2019 Annual Report on Form 10-K and under the previous lease accounting standard, future minimum lease payments for our only operating lease having an initial or remaining noncancellable lease term in excess of one year would have been as follows: Operating Leases at June 30, 2019 Fiscal Year: 2020 $ 461 2021 475 2022 489 2023 504 2024 519 Thereafter 1,796 Total minimum lease payments $ 4,244

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jul. 02, 2019	Jun. 30, 2019
Accounting Policies [Abstract]
Long-term assets		$ 3,300
Total liabilities	$ 10,854	$ 3,300	$ 8,512

COMPOSITION OF CERTAIN FINANC_3

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Details) (Narrative) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2019	Jun. 30, 2019
Aggregate cost	$ 5,050	$ 5,050	$ 3,780
Net unrealized gains (losses)	705	100	(549)
Gross unrealized losses		329
Gross unrealized gains		229
Marketable equity securities	3,540	3,540	2,649
Air T, Inc. [Member]
Marketable equity securities	$ 1,410	$ 1,410	$ 938

COMPOSITION OF CERTAIN FINANC_4

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Inventory) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Raw materials/purchased components	$ 3,649	$ 3,132
Work in process	2,394	1,511
Sub-assemblies/finished components	1,586	1,524
Finished goods	179	72
Total inventory	$ 7,808	$ 6,239

COMPOSITION OF CERTAIN FINANC_5

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Marketable Equity Securities) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Marketable equity securities - short-term	$ 3,540	$ 2,649
Marketable equity securities - long-term	1,610	582
Total marketable equity securities	$ 5,150	$ 3,231

COMPOSITION OF CERTAIN FINANC_6

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Intangible Assets) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jun. 30, 2019
Finite-Lived Intangible Assets [Line Items]
Total intangibles	$ 198	$ 175
Less accumulated amortization	(53)	(46)
Intangible assets,net	145	129
Patent-related costs [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangibles	$ 198	$ 175

WARRANTY (Narrative) (Details)

WARRANTY (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2019	Jun. 30, 2019	Sep. 30, 2018	Jun. 30, 2018
Product Warranties Disclosures [Abstract]
Warranty expense	$ 44	$ 16	$ 56	$ 30
Warranty reserves	$ 141	$ 99	$ 141	$ 99	$ 126	$ 136	$ 95	$ 107

WARRANTY (Movement in Warranty)

WARRANTY (Movement in Warranty) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
Beginning balance	$ 126	$ 95	$ 136	$ 107
Accruals during the period	28	25	53	54
Changes in estimates of prior period warranty accruals	16	(9)	3	(24)
Warranty amortization	(29)	(12)	(51)	(38)
Ending balance	$ 141	$ 99	$ 141	$ 99

NET INCOME PER SHARE (Details)

NET INCOME PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Basic:
Net income - Basic	$ 1,249	$ 1,179	$ 2,354	$ 2,528
Weighted average shares outstanding	3,950,000	4,195,000	3,979,000	4,263,000
Basic income per share	$ 0.32	$ 0.28	$ 0.59	$ 0.59
Diluted:
Net income - Diluted	$ 1,249	$ 1,179	$ 2,354	$ 2,528
Weighted average shares outstanding	3,950,000	4,195,000	3,979,000	4,263,000
Effect of dilutive securities – stock options	103,000	47,000	103,000	40,000
Weighted average shares used in calculation of diluted earnings per share	4,053,000	4,242,000	4,082,000	4,303,000
Diluted income per share	$ 0.31	$ 0.28	$ 0.58	$ 0.59

INCOME TAXES (Reconciliation of

INCOME TAXES (Reconciliation of Beginning and Ending Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Unrecognized tax benefits:
Beginning balance	$ 490	$ 462
Additions based on tax positions related to the current year	12	10
Reductions based on tax positions related to prior years	(23)
Ending balance	$ 479	$ 472

SHARE-BASED COMPENSATION (Narra

SHARE-BASED COMPENSATION (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		3 Months Ended			6 Months Ended
	Jul. 31, 2018	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2014	Dec. 31, 2019	Dec. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Nov. 29, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding			54,000	54,000		54,000	54,000	54,000	57,000
Weighted-average exercise price			$ 1.86	$ 1.86		$ 1.86	$ 1.86	$ 1.86	$ 1.88
Performance Award [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate share-based compensation expense			$ 8	$ 8		$ 16	$ 16
Number of awards granted during period	40,000	200,000
Period for award description						Whether any performance awards vest, and the amount that does vest, is tied to the completion of service periods that range from 7 months to 9.5 years and the achievement of our common stock trading at certain pre-determined prices.
Unrecognized compensation cost			$ 50			$ 50
Weighted-average period						3 years 4 months 13 days
Weighted average fair value						$ 4.46
Shares issued	24,727
Payment of payroll tax liabilities	$ 101
Common shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of awards granted during period	40,000
2016 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available to be awarded			200,000			200,000				1,500,000
Employees Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value of stock options outstanding			$ 847			$ 847
Weighted average remaining contractual life						1 year 6 months
ESPP [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate share-based compensation expense						$ 3	$ 2
Description of plan					The ESPP conforms to the provisions of Section 423 of the Internal Revenue Code, has coterminous offering and purchase periods of six months, and bases the pricing to purchase shares of our common stock on a formula so as to result in a per share purchase price that approximates a 15% discount from the market price of a share of our common stock at the end of the purchase period.
Number of shares reserved for future issuance					704,715
Number of shares purchased and allocated to employee (in shares)						1,292	1,820
Exercise price (in dollars per share)						$ 11.76	$ 5.51
Number of shares options purchased (in shares)						20,158

SHARE-BASED COMPENSATION (Sched

SHARE-BASED COMPENSATION (Schedule of Summary of Stock Option Activity) (Details) - $ / shares	6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Number of Shares
Outstanding at beginning of period	54,000	57,000
Options granted
Options exercised		(3,000)
Options forfeited
Outstanding at end of period	54,000	54,000
Stock Options Exercisable at end of period	54,000	54,000
Weighted- Average Exercise Price
Outstanding at beginning of period (in dollars per share)	$ 1.86	$ 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	1.86
Stock Options Exercisable at end of period (in dollars per share)	$ 1.86	$ 1.86

MAJOR CUSTOMERS AND SUPPLIERS_2

MAJOR CUSTOMERS AND SUPPLIERS (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Jun. 30, 2019
Concentration Risk [Line Items]
Percentage of concentrations risk	100.00%	100.00%	100.00%	100.00%	100.00%
Accounts payable	$ 1,672		$ 1,672		$ 1,996
Accounts Payable [Member] | Supplier One [Member]
Concentration Risk [Line Items]
Percentage of concentrations risk				10.00%
Accounts Payable [Member] | Supplier Two [Member]
Concentration Risk [Line Items]
Percentage of concentrations risk	10.00%	10.00%	10.00%	10.00%
Purchase [Member] | Supplier One [Member]
Concentration Risk [Line Items]
Accounts payable	$ 306		$ 306		304
Purchase [Member] | Supplier Two [Member]
Concentration Risk [Line Items]
Accounts payable	$ 117		$ 117		$ 373

MAJOR CUSTOMERS AND SUPPLIERS_3

MAJOR CUSTOMERS AND SUPPLIERS (Sales) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Jun. 30, 2019
Concentration Risk [Line Items]
Net sales	$ 7,961	$ 6,399	$ 15,201	$ 13,314
Total gross accounts receivable	$ 2,700		$ 2,700		$ 4,100
Percentage of concentrations risk	100.00%	100.00%	100.00%	100.00%	100.00%
Sales [Member]
Concentration Risk [Line Items]
Net sales	$ 6,452	$ 4,500	$ 12,407	$ 9,294
Percentage of concentrations risk	81.00%	70.00%	82.00%	70.00%
Sales [Member] | Customer 1 [Member]
Concentration Risk [Line Items]
Net sales	$ 5,655	$ 4,135	$ 11,067	$ 8,449
Percentage of concentrations risk	71.00%	64.00%	74.00%	64.00%
Sales [Member] | Customer 2 [Member]
Concentration Risk [Line Items]
Net sales	$ 797	$ 365	$ 1,340	$ 845
Percentage of concentrations risk	10.00%	6.00%	9.00%	6.00%
Accounts Receivable [Member]
Concentration Risk [Line Items]
Total gross accounts receivable	$ 1,991		$ 1,991		$ 3,367
Percentage of concentrations risk			74.00%		82.00%
Accounts Receivable [Member] | Customer 1 [Member]
Concentration Risk [Line Items]
Total gross accounts receivable	1,754		$ 1,754		$ 2,587
Percentage of concentrations risk			65.00%		63.00%
Accounts Receivable [Member] | Customer 3 [Member]
Concentration Risk [Line Items]
Total gross accounts receivable	$ 237		$ 237		$ 780
Percentage of concentrations risk			9.00%		19.00%

NOTES PAYABLE AND FINANCING T_2

NOTES PAYABLE AND FINANCING TRANSACTIONS (Details) - USD ($)	Oct. 02, 2018	Sep. 06, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Interest expense			$ 63,000	$ 69,000	$ 122,000	$ 89,000
Business Loan Agreement ("Revolving Loan Agreement") [Member]
Debt Instrument [Line Items]
Note payable balance			0		$ 0
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%
Note payable balance			$ 4,200,000		$ 4,200,000
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

COMMON STOCK (Details)

COMMON STOCK (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		23 Months Ended	76 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2018	Dec. 31, 2019
At The Market Offering Agreement [Member]
Class of Stock [Line Items]
Expiration date			Feb. 16, 2020
Number of shares sold					340,465
Proceeds from sale of shares					$ 2,311
Fees paid to Ascendiant					$ 72
Share Repurchase Program [Member] | Cumulative basis [Member]
Class of Stock [Line Items]
Shares repurchased during the year, number of shares						744,736
Shares repurchased during year, value						$ 7,300
Share Repurchase Program [Member] | 10b5-1 Plan [Member]
Class of Stock [Line Items]
Shares repurchased during the year, number of shares	106,897	109,366	156,685	217,454
Shares repurchased during year, value	$ 1,535	$ 1,445	$ 2,215	$ 2,560
Number of authorized shares to repurchase, shares	1,000,000		1,000,000			1,000,000

LEASES (Narrative) (Details)

LEASES (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Dec. 31, 2019	Dec. 31, 2019	Jul. 01, 2019	Jun. 30, 2019
Leases [Abstract]
Operating lease right-of-use	$ 3,107	$ 3,107	$ 3,300
Operating lease liability	$ 3,233	$ 3,233	$ 3,300
Interest rate	5.30%	5.30%
Cash paid lease liability	$ 116	$ 229
Remaining lease term	7 years 9 months	7 years 9 months
Operating lease liability current portion	$ 297	$ 297

LEASES (Schedule of Future Mini

LEASES (Schedule of Future Minimum Base Rental Payment) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jul. 01, 2019	Jun. 30, 2019
Leases [Abstract]
2020	$ 232
2021	475
2022	489
2023	504
2024	519
Thereafter	1,796
Total lease payments	4,015
Less imputed interest:	(782)
Total	$ 3,233	$ 3,300
2020			$ 461
2021			475
2022			489
2023			504
2024			519
Thereafter			1,796
Total minimum lease payments			$ 4,244