Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2020 | Feb. 02, 2021 | |
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, 2020 | |
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 | 3,860,639 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2021 | |
Entity Incorporation State Country Code | CO | |
Entity File Number | 0-14942 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 5,523 | $ 6,421 |
Investments | 2,884 | 2,560 |
Accounts receivable, net of allowance for doubtful accounts of $4 and $6 at December 31, 2020 and at June 30, 2020, respectively | 4,621 | 5,155 |
Deferred costs | 138 | 155 |
Inventory | 9,152 | 8,238 |
Prepaid expenses and other current assets | 392 | 145 |
Total current assets | 22,710 | 22,674 |
Land and building, net | 6,484 | |
Equipment and leasehold improvements, net | 2,704 | 2,686 |
Right of use asset, net | 2,777 | 2,943 |
Intangibles, net | 158 | 162 |
Deferred income taxes, net | 259 | 259 |
Investments | 3,238 | 2,360 |
Other assets | 42 | 42 |
Total assets | 38,372 | 31,126 |
Current Liabilities: | ||
Accounts payable | 2,470 | 1,965 |
Accrued expenses | 1,785 | 2,411 |
Deferred revenue | 200 | 200 |
Note payable and capital lease obligations | 479 | 651 |
Total current liabilities | 4,934 | 5,227 |
Lease liability, net of current portion | 2,609 | 2,750 |
Income taxes payable | 615 | 804 |
Notes and capital leases payable, net of current portion | 8,375 | 3,283 |
Total non-current liabilities | 11,599 | 6,837 |
Total liabilities | 16,533 | 12,064 |
Shareholders' equity: | ||
Common shares; no par value; 50,000,000 shares authorized; 3,860,639 and 3,811,137 shares issued and outstanding at December 31, 2020 and June 30, 2020, respectively | 12,621 | 12,752 |
Accumulated other comprehensive income (loss) | (280) | (1,586) |
Retained earnings | 9,498 | 7,896 |
Total shareholders' equity | 21,839 | 19,062 |
Total liabilities and shareholders' equity | $ 38,372 | $ 31,126 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, net of allowance for doubtful accounts | $ 4 | $ 6 |
Common shares, no par value (in dollars per share) | $ 0 | $ 0 |
Common shares, authorized | 50,000,000 | 50,000,000 |
Common shares, issued | 3,860,639 | 3,811,137 |
Common shares, outstanding | 3,860,639 | 3,811,137 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 8,265 | $ 7,961 | $ 16,855 | $ 15,201 |
Cost of sales | 5,669 | 5,097 | 10,784 | 9,557 |
Gross profit | 2,596 | 2,864 | 6,071 | 5,644 |
Operating expenses: | ||||
Selling expenses | 150 | 135 | 280 | 277 |
General and administrative expenses | 936 | 664 | 1,641 | 1,327 |
Research and development costs | 989 | 397 | 2,080 | 881 |
Total operating expenses | 2,075 | 1,196 | 4,001 | 2,485 |
Operating income | 521 | 1,668 | 2,070 | 3,159 |
Interest expense | (75) | (63) | (129) | (122) |
Interest and other income | 20 | 33 | 61 | 68 |
Gain on sale of investments | 12 | |||
Income from operations before income taxes | 466 | 1,638 | 2,014 | 3,105 |
Income tax expense | (129) | (389) | (412) | (751) |
Net income | 337 | 1,249 | 1,602 | 2,354 |
Other comprehensive income, net of tax: | ||||
Unrealized income from marketable equity investments | 1,413 | 705 | 1,306 | 649 |
Comprehensive income | $ 1,750 | $ 1,954 | $ 2,908 | $ 3,003 |
Basic net income per share: | ||||
Net income | $ 0.09 | $ 0.32 | $ 0.42 | $ 0.59 |
Diluted net income per share: | ||||
Net income | $ 0.08 | $ 0.31 | $ 0.4 | $ 0.58 |
Weighted average common shares outstanding: | ||||
Basic | 3,861 | 3,950 | 3,856 | 3,979 |
Diluted | 4,012 | 4,053 | 4,014 | 4,082 |
Common shares outstanding | 3,861 | 3,884 | 3,861 | 3,884 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common shares [Member] | Accumulated other comprehensive income (loss) [Member] | Retained earnings [Member] | Total |
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 (in shares) | (2,215) | |||
Shares withheld from common stock issued to pay employee payroll taxes, shares | ||||
Exercise of stock options | ||||
ESPP shares issued (in shares) | 15 | |||
Cumulative effect of change in accounting principle | 42 | |||
Net income | $ 2,354 | $ 2,354 | ||
Net change in unrealized gain from marketable securities, net of taxes | $ 649 | |||
Balance at end (in shares) 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 (in shares) | (1,535) | |||
Shares withheld from common stock issued to pay employee payroll taxes, shares | ||||
Exercise of stock options | ||||
ESPP shares issued (in shares) | ||||
Cumulative effect of change in accounting principle | ||||
Net income | $ 1,249 | $ 1,249 | ||
Net change in unrealized gain from marketable securities, net of taxes | $ 705 | |||
Balance at end (in shares) at Dec. 31, 2019 | 13,634 | 100 | 4,138 | 17,872 |
Balance at beginning at Jun. 30, 2020 | $ 12,752 | $ (1,586) | $ 7,896 | $ 19,062 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Share-based compensation expense | 64 | |||
Share repurchases | ||||
Shares withheld from common stock issued to pay employee payroll taxes, shares | (259) | |||
Exercise of stock options | $ 39 | |||
ESPP shares issued (in shares) | 25 | |||
Cumulative effect of change in accounting principle | ||||
Net income | 1,602 | 1,602 | ||
Net change in unrealized gain from marketable securities, net of taxes | 1,306 | |||
Balance at end at Dec. 31, 2020 | $ 12,621 | (280) | 9,498 | 21,839 |
Balance at beginning at Sep. 30, 2020 | 12,583 | (1,693) | 9,161 | 20,051 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Share-based compensation expense | 38 | |||
Share repurchases | ||||
Shares withheld from common stock issued to pay employee payroll taxes, shares | ||||
Exercise of stock options | ||||
ESPP shares issued (in shares) | ||||
Cumulative effect of change in accounting principle | ||||
Net income | 337 | 337 | ||
Net change in unrealized gain from marketable securities, net of taxes | 1,413 | 1,413 | ||
Balance at end at Dec. 31, 2020 | $ 12,621 | $ (280) | $ 9,498 | $ 21,839 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 1,602 | $ 2,354 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 320 | 282 |
Share-based compensation | 64 | 19 |
Non-cash lease expense | 15 | 22 |
Amortization of loan fees | 5 | 4 |
Gain on sale of investments | (12) | |
Deferred income taxes | 97 | |
Bad debt expense (recovery) | (2) | 17 |
Changes in operating assets and liabilities: | ||
Accounts receivable and other current receivables | 535 | 1,400 |
Deferred costs | 18 | (62) |
Inventory | (913) | (1,569) |
Prepaid expenses and other assets | (247) | 430 |
Accounts payable and accrued expenses | (110) | (771) |
Deferred revenue | 145 | |
Income taxes payable | (190) | 190 |
Net cash provided by operating activities | 1,085 | 2,558 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of investments | (1,271) | |
Purchases of equipment and leasehold improvements | (316) | (317) |
Proceeds from sale of investments | 115 | |
Purchase of land and building | (6,499) | |
Increase in intangibles | (3) | (23) |
Net cash used in investing activities | (6,703) | (1,611) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repurchases of common stock | (2,215) | |
Proceeds from exercise of options and ESPP contributions | 64 | 15 |
Payment of employee payroll taxes on net issuance of common stock | (259) | |
Proceeds from Minnesota Bank & Trust long-term debt, net of fees | 5,176 | |
Principal payments on notes payable and capital lease | (261) | (314) |
Net cash provided by (used in) financing activities | 4,720 | (2,514) |
Net decrease in cash and cash equivalents | (898) | (1,567) |
Cash and cash equivalents, beginning of period | 6,421 | 7,742 |
Cash and cash equivalents, end of period | 5,523 | 6,175 |
Cash paid during the period for: | ||
Interest | 101 | 103 |
Income taxes | 754 | 13 |
Non-cash investing and financing activity: | ||
Cashless stock option exercise | $ 4 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | NOTE 1. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of Pro-Dex, Inc. (“we,” “us,” “our,” “Pro-Dex,” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and the instructions to Form 10-Q and Regulation S-K. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These financial statements should be read in conjunction with the financial statements presented in our Annual Report on Form 10-K for the fiscal year ended June 30, 2020. 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, 2020. 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, 2020 | |
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, thoracic, 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. In August 2020, we formed a wholly-owned subsidiary, PDEX Franklin, LLC (“PDEX Franklin”), to hold title for an approximate 25,000 square foot industrial building in Tustin, California (the “Franklin Property”) that we acquired on November 6, 2020 in order to allow for the continued growth of our business. The consolidated financial statements include the accounts of the Company and PDEX Franklin and all significant inter-company accounts and transactions have been eliminated. This subsidiary has no separate operations. |
COMPOSITION OF CERTAIN FINANCIA
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS | 6 Months Ended |
Dec. 31, 2020 | |
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 $ 4,019 $ 4,241 Work in process 2,328 2,339 Sub-assemblies/finished components 2,226 1,438 Finished goods 579 220 Total inventory $ 9,152 $ 8,238 Investments Investments are stated at market value and consist of the following (in thousands): December 31, June 30, Marketable equity securities - short-term $ 2,884 $ 2,560 Marketable equity securities - long-term 3,238 2,360 Total marketable equity securities $ 6,122 $ 4,920 Investments at December 31, 2020 and June 30, 2020 had an aggregate cost basis of $6,380,000 and $6,483,000, respectively. The long-term investments include equity investments of thinly traded securities that we classified as long term in nature because if we decide to sell these securities we may not be able to sell our position within one year. At December 31, 2020, the investments included net unrealized losses of $258,000 (gross unrealized losses of $789,000 offset by gross unrealized gains of $531,000). During the quarter ended December 31, 2020, we incurred net unrealized gains of $1,413,000. At June 30, 2020, the investments included net unrealized losses of $1,563,000 (gross unrealized losses of $1,703,000 offset by gross unrealized gains of $140,000). Of the total marketable equity securities at December 31, 2020 and June 30, 2020, $1,510,000 and $847,000, 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 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, the 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. Land and building Land and building consist of the following (in thousands): December 31, June 30, Land $ 3,684 $ — Building 2,815 — Total 6,499 — Less: accumulated depreciation (15 ) — $ 6,484 $ — On November 6, 2020 we acquired the Franklin Property for a total purchase price of $6.5 million, of which we paid $1.3 million in cash and the balance of $5.2 we financed through Minnesota Bank & Trust (“MBT”) (see Note 9). As of the date of this filing, we are continuing our build-out of the property, which we expect to complete in the fourth quarter of this fiscal year. The building is being amortized on a straight-line basis over a period of 30 years. Intangibles Intangibles consist of the following (in thousands): December 31, June 30, Patent-related costs $ 225 $ 222 Less accumulated amortization (67 ) (60 ) $ 158 $ 162 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, 2020 | |
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, 2020, the warranty reserve amounted to $347,000 and $213,000, 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, 2020 and 2019 was $182,000 and $44,000, respectively, and for the six months ended December 31, 2020 and 2019 was $254,000 and $56,000, respectively. Information regarding the accrual for warranty costs for the three and six months ended December 31, 2020 and 2019 are as follows (in thousands): As of and for the 2020 2019 Beginning balance $ 190 $ 126 Accruals during the period 175 28 Changes in estimates of prior period warranty accruals 7 16 Warranty amortization (25 ) (29 ) Ending balance $ 347 $ 141 As of and for the 2020 2019 Beginning balance $ 213 $ 136 Accruals during the period 255 53 Changes in estimates of prior period warranty accruals (1 ) 3 Warranty amortization (120 ) (51 ) Ending balance $ 347 $ 141 |
NET INCOME PER SHARE
NET INCOME PER SHARE | 6 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | NOTE 5. NET INCOME PER SHARE We calculate 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 2020 2019 2020 2019 Basic: Net income $ 337 $ 1,249 $ 1,602 $ 2,354 Weighted average shares outstanding 3,861 3,950 3,856 3,979 Basic income per share $ 0.09 $ 0.32 $ 0.42 $ 0.59 Diluted: Net income $ 337 $ 1,249 $ 1,602 $ 2,354 Weighted average shares outstanding 3,861 3,950 3,856 3,979 Effect of dilutive securities 151 103 158 103 Weighted average shares used in calculation of diluted earnings per share 4,012 4,053 4,014 4,082 Diluted income per share $ 0.08 $ 0.31 $ 0.40 $ 0.58 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Dec. 31, 2020 | |
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. We recognize accrued interest and penalties related to unrecognized tax benefits when applicable. As of December 31, 2020, 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, 2017 and later. Our state income tax returns are open to audit under the statute of limitations for the years ended June 30, 2016 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, 2020 | |
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 our 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, 2020, 200,000 performance awards and 310,000 non-qualified stock options have been granted under the 2016 Equity Incentive Plan. Former Stock Option Plans No options were granted under the Former Stock Option Plans during the three or six months ended December 31, 2020 and 2019. As of December 31, 2020, there was no unrecognized compensation cost under the Former Stock Option Plans, as all outstanding stock options are fully vested. As of December 31, 2020, the options outstanding had a weighted average remaining contractual life of 0.92 years and an intrinsic value of $919,000. Following is a summary of stock option activity for the six months ended December 31, 2020 and 2019: Six Months Ended December 31, 2020 2019 Number of Shares Weighted-Average Number of Shares Weighted-Average Outstanding at July 1, 54,000 $ 1.86 54,000 $ 1.86 Options granted — — — — Options exercised (22,500 ) 1.94 — — Options forfeited — — — — Outstanding at end of period 31,500 $ 1.81 54,000 $ 1.86 Stock Options Exercisable at December 31, 31,500 $ 1.81 54,000 $ 1.86 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. In February 2020, the Compensation Committee reallocated 48,000 previously forfeited awards, having the same remaining terms and conditions, to certain other employees. The weighted average fair value of the performance awards reallocated in 2020 was $16.90, calculated using the weighted average fair market value for each award, using a Monte Carlo simulation. During the three months ended December 31, 2020 and 2019, we recorded share-based compensation expense of $21,000 and $8,000, respectively, related to outstanding performance awards. During the six months ended December 31, 2020 and 2019, we recorded share-based compensation expense of $42,000 and $16,000, respectively, related to outstanding performance awards. On December 31, 2020, there was approximately $202,000 of unrecognized compensation cost related to non-vested performance awards expected to be expensed over the weighted-average period of 3.49 years. On July 1, 2020, it was determined by the Compensation Committee of our Board of Directors that the second of five tranches of 40,000 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 25,629 shares and paid $259,000 of participant-related payroll tax liabilities. Non-Qualified Stock Options In December 2020, the Compensation Committee of our Board of Directors granted 310,000 stock options to our directors and certain employees under the 2016 Equity Incentive Plan. Whether any stock options vest, and the amount that does vest, is tied to the completion of service periods that range from 18 months to 10.5 years at inception and the achievement of our common stock trading at certain pre-determined prices. We recorded compensation expense of $18,000 for the three and six months ended December 31, 2020, related to these options. The weighted average fair value of the stock option awards granted was calculated using a Monte Carlo simulation. 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 our 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, 2020 and 2019, 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, 2020 and 2019, 1,485 and 1,292 shares of our common stock were purchased under the ESPP, respectively, and allocated to employees based upon their contributions at prices of $16.94 and $11.76, respectively, per share. On a cumulative basis, since the inception of the ESPP, employees have purchased a total of 23,271 shares of our common stock. During the six months ended December 31, 2020 and 2019, we recorded share-based compensation expense in the amount of $4,000 and $3,000, respectively, relating to the ESPP. |
MAJOR CUSTOMERS & SUPPLIERS
MAJOR CUSTOMERS & SUPPLIERS | 6 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019 is as follows (in thousands, except percentages): Three Months Ended December 31, 2020 2019 Amount Percent of Amount Percent of Net sales $ 8,265 100 % $ 7,961 100 % Customer concentration: Customer 1 $ 5,809 70 % $ 5,655 71 % Customer 2 1,221 15 % 697 9 % Customer 3 658 8 % 797 10 % Total $ 7,688 93 % $ 7,149 90 % Six Months Ended December 31, 2020 2019 Amount Percent of Amount Percent of Net sales $ 16,855 100 % $ 15,201 100 % Customer concentration: Customer 1 10,978 65 % 11,067 73 % Customer 2 3,391 20 % 1,121 7 % Customer 3 1,127 7 % 1,340 9 % Total $ 15,496 92 % $ 13,528 89 % Information with respect to accounts receivable from those customers who comprised more than 10 % of our gross accounts receivable at either December 31, 2020 or June 30, 2020, is as follows (in thousands, except percentages): December 31, 2020 June 30, 2020 Total gross accounts receivable $ 4,625 100 % $ 5,161 100 % Customer concentration: Customer 1 $ 2,616 57 % $ 2,205 42 % Customer 2 1,385 30 % 1,593 31 % Customer 3 309 6 % 972 19 % Total $ 4,310 93 % $ 4,770 92 % During the three months ended December 31, 2020, we had three suppliers accounting for 10% or more of total inventory purchases, and during the six months ended December 31, 2020, we had two suppliers that accounted for more than 10% of our total inventory purchases. During the three and six months ended December 31, 2019, we had two suppliers that accounted for more than 10% of our total inventory purchases. Amounts owed to the fiscal 2021 two most significant suppliers at December 31, 2020 totaled $656,000 and $345,000, respectively, and at June 30, 2020 totaled $161,000 and $245,000, respectively. |
NOTES PAYABLE AND FINANCING TRA
NOTES PAYABLE AND FINANCING TRANSACTIONS | 6 Months Ended |
Dec. 31, 2020 | |
Notes Payable [Abstract] | |
NOTES PAYABLE AND FINANCING TRANSACTIONS | NOTE 9. NOTES PAYABLE AND FINANCING TRANSACTIONS Minnesota Bank & Trust On November 6, 2020 (the “Closing Date”), PDEX Franklin, a newly created wholly owned subsidiary of the Company, purchased the Franklin Property. A portion of the purchase price was financed by a loan from MBT to PDEX Franklin in the principal amount of $5,207,472 (the “Property Loan”) pursuant to a Loan Agreement, dated as of the Closing Date, between PDEX Franklin and MBT (the “Property Loan Agreement”) and corresponding Term Note (the “Property Note”) issued by PDEX Franklin in favor of MBT on the Closing Date. The Property Loan is secured by the Franklin Property pursuant to a Deed of Trust with Assignment of Leases and Rents, Security Agreement and Fixture Filing in favor of MBT (the “Deed”) and by an Assignment of Leases and Rents by PDEX Franklin in favor of MBT (the “Rents Assignment”). We paid loan origination fees to MBT on the Closing Date in the amount of $26,037. The Property Loan bears interest at a fixed rate of 3.55% per annum, which is subject to a 3% increase upon an event of default. Accrued interest is payable monthly beginning on December 1, 2020 and both principal and interest in the amount of approximately $30,000 are due and payable on the first day of each subsequent month until the maturity date of November 1, 2030 (the “Maturity Date”), at which time a balloon payment in the amount of $3.1 million is due. Any prepayment of the Property Loan (other than monthly scheduled interest and principal payments), is subject to a prepayment fee equal to 4% of the principal amount prepaid for any prepayment made during the first or second year, 3% of the principal amount prepaid for any prepayment made during the third or fourth year, 2% of the principal amount prepaid for any prepayment made during the fifth or sixth year, and 1% of the principal amount prepaid for any prepayment made during the seventh or eighth year. The Property Loan Agreement, Property Note, Deed, and Rents Assignment each contain representations, warranties, covenants, and events of default that are customary for a loan of this type. On the Closing Date, we also entered into an The Term Loan A matures on November 1, 2027 and bears interest at a fixed rate of 3.84% per annum. Initial payments on the Term Loan A of interest only are due on December 1, 2020 through June 1, 2021. Commencing July 1, 2021 and continuing on the first day of each month thereafter until the maturity date, we are required to make payments of principal and interest on Term Loan A of $109,168.18 (if the outstanding principal balance on June 1, 2021 is the full $7,525,000) and proportionately reduced if the principal balance is less than that amount plus any additional accrued and unpaid interest through the date of payment. As of the date of this filing, we have not borrowed any additional amounts against Term Loan A. The balance owed on Term Loan A as of December 31, 2020 is $3.7 million. The Term Loan B matures on November 1, 2027 and bears interest at a fixed rate of 3.84% per annum. Initial payments on the Term Loan B of interest only are due on December 1, 2020 through June 1, 2021. Commencing July 1, 2021 and continuing on the first day of each month thereafter until the maturity date, we are required to make payments of principal and interest on Term Loan B of $14,507.40, (if the outstanding principal balance on June 1, 2021 is the full $1,000,000) and proportionately reduced if the principal balance is less than that amount plus any additional accrued and unpaid interest through the date of payment. As of December 31, 2020, we had not made any draws against Term Note B. The Revolving Loan may be borrowed against from time to time through its maturity date of November 5, 2021, unless earlier terminated pursuant to its terms, and bears interest at an annual rate equal to the greater of (a) 3.25% or (b) the prime rate as published in the Money Rates section of the Wall Street Journal. Commencing on the first day of each month after we initially borrow against the Revolving Loan 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 in full on the maturity date (or earlier termination of the Revolving Loan). No amounts have been drawn against 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 all Loans will be increased by 3% and MBT may, at its option, declare the Loans immediately due and payable in full. The Amended Credit Agreement, Security Agreement, Term Note A, Term Note B, and Revolving Note 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, 2020 | |
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, 2020, we did not repurchase any shares under the repurchase program. 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. On a cumulative basis, since implementation of the share repurchase program in 2013, we have repurchased a total of 819,325 shares under the share repurchase program at an aggregate cost, inclusive of fees, of $8.5 million. All repurchases under the 10b5-1 Plans were administered through an independent broker. At The Market Offering Agreement In December 2020, our Board approved an ATM Agreement with Ascendiant Capital Markets, LLC (“Ascendiant”). The ATM Agreement allows us to sell shares of our common stock in transactions that are deemed to be “at-the-market” equity offerings as defined in Rule 415 under the Securities Act of 1933, as amended, including sales made by means of ordinary brokers’ transactions, including on Nasdaq. In connection with the ATM Agreement, we entered into a prearranged stock sales plan with Ascendiant, which is intended to qualify for the safe harbor under Rule 10b5-1 under the Exchange Act (“ATM 10b5-1 Plan”). No sales of common stock have been made under the ATM Agreement as of the date of this report, but future sales may occur pursuant to the parameters of the ATM 10b5-1 Plan or otherwise at the direction of our Board in accordance with the terms of the ATM Agreement. |
LEASES
LEASES | 6 Months Ended |
Dec. 31, 2020 | |
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 operating lease ROU asset and long-term liability are presented separately on our condensed consolidated balance sheet. The current portion of our operating lease liability as of December 31, 2020, in the amount of $328,000, is presented within accrued expenses on the condensed consolidated balance sheet. As of December 31, 2020, the maturity of our lease liability is as follows: Operating Lease Fiscal Year: 2021 $ 239 2022 489 2023 504 2024 519 2025 535 Thereafter 1,261 Total lease payments 3,547 Less imputed interest: (610 ) Total $ 2,937 As of December 31, 2020, our operating lease has a remaining lease term of six years and nine months and an imputed interest rate of 5.53%. Cash paid for amounts included in the lease liability for the three and six months ended December 31, 2020 totaled $120,000 and $236,000, respectively, and for December 31, 2019 totaled $116,000 and $229,000, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Dec. 31, 2020 | |
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, 2020 | |
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, 2020 | |
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 $ 4,019 $ 4,241 Work in process 2,328 2,339 Sub-assemblies/finished components 2,226 1,438 Finished goods 579 220 Total inventory $ 9,152 $ 8,238 |
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 $ 2,884 $ 2,560 Marketable equity securities - long-term 3,238 2,360 Total marketable equity securities $ 6,122 $ 4,920 |
Schedule of land and building | Land and building consist of the following (in thousands): December 31, June 30, Land $ 3,684 $ — Building 2,815 — Total 6,499 — Less: accumulated depreciation (15 ) — $ 6,484 $ — |
Schedule of intangibles | Intangibles consist of the following (in thousands): December 31, June 30, Patent-related costs $ 225 $ 222 Less accumulated amortization (67 ) (60 ) $ 158 $ 162 |
WARRANTY (Tables)
WARRANTY (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019 are as follows (in thousands): As of and for the 2020 2019 Beginning balance $ 190 $ 126 Accruals during the period 175 28 Changes in estimates of prior period warranty accruals 7 16 Warranty amortization (25 ) (29 ) Ending balance $ 347 $ 141 As of and for the 2020 2019 Beginning balance $ 213 $ 136 Accruals during the period 255 53 Changes in estimates of prior period warranty accruals (1 ) 3 Warranty amortization (120 ) (51 ) Ending balance $ 347 $ 141 |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
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 2020 2019 2020 2019 Basic: Net income $ 337 $ 1,249 $ 1,602 $ 2,354 Weighted average shares outstanding 3,861 3,950 3,856 3,979 Basic income per share $ 0.09 $ 0.32 $ 0.42 $ 0.59 Diluted: Net income $ 337 $ 1,249 $ 1,602 $ 2,354 Weighted average shares outstanding 3,861 3,950 3,856 3,979 Effect of dilutive securities 151 103 158 103 Weighted average shares used in calculation of diluted earnings per share 4,012 4,053 4,014 4,082 Diluted income per share $ 0.08 $ 0.31 $ 0.40 $ 0.58 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019: Six Months Ended December 31, 2020 2019 Number of Shares Weighted-Average Number of Shares Weighted-Average Outstanding at July 1, 54,000 $ 1.86 54,000 $ 1.86 Options granted — — — — Options exercised (22,500 ) 1.94 — — Options forfeited — — — — Outstanding at end of period 31,500 $ 1.81 54,000 $ 1.86 Stock Options Exercisable at December 31, 31,500 $ 1.81 54,000 $ 1.86 |
MAJOR CUSTOMERS & SUPPLIERS (Ta
MAJOR CUSTOMERS & SUPPLIERS (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
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, 2020 and 2019 is as follows (in thousands, except percentages): Three Months Ended December 31, 2020 2019 Amount Percent of Amount Percent of Net sales $ 8,265 100 % $ 7,961 100 % Customer concentration: Customer 1 $ 5,809 70 % $ 5,655 71 % Customer 2 1,221 15 % 697 9 % Customer 3 658 8 % 797 10 % Total $ 7,688 93 % $ 7,149 90 % Six Months Ended December 31, 2020 2019 Amount Percent of Amount Percent of Net sales $ 16,855 100 % $ 15,201 100 % Customer concentration: Customer 1 10,978 65 % 11,067 73 % Customer 2 3,391 20 % 1,121 7 % Customer 3 1,127 7 % 1,340 9 % Total $ 15,496 92 % $ 13,528 89 % |
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, 2020 or June 30, 2020, is as follows (in thousands, except percentages): December 31, 2020 June 30, 2020 Total gross accounts receivable $ 4,625 100 % $ 5,161 100 % Customer concentration: Customer 1 $ 2,616 57 % $ 2,205 42 % Customer 2 1,385 30 % 1,593 31 % Customer 3 309 6 % 972 19 % Total $ 4,310 93 % $ 4,770 92 % |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Maturities of Lease Liabilities | As of December 31, 2020, the maturity of our lease liability is as follows: Operating Lease Fiscal Year: 2021 $ 239 2022 489 2023 504 2024 519 2025 535 Thereafter 1,261 Total lease payments 3,547 Less imputed interest: (610 ) Total $ 2,937 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 | Jul. 01, 2019 |
Accounting Policies [Abstract] | |||
Long-term assets | $ 3,300 | ||
Total liabilities | $ 16,533 | $ 12,064 | $ 3,300 |
COMPOSITION OF CERTAIN FINANC_3
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Details) (Narrative) - USD ($) $ in Thousands | Nov. 06, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Jun. 30, 2020 |
Aggregate cost | $ 6,380 | $ 6,380 | $ 6,483 | |
Net unrealized losses | 1,413 | 258 | 1,563 | |
Gross unrealized losses | 789 | 1,703 | ||
Gross unrealized gains | 531 | 140 | ||
Marketable equity securities | 2,884 | 2,884 | 2,560 | |
Purchase of franklin property | $ 6,500 | $ 316 | ||
Cash paid to purchase Franklin Property | 1,300 | |||
Building [Member] | ||||
Useful life | 30 years | |||
Financed through Minnesota Bank & Trust [Member] | ||||
Cash paid to purchase Franklin Property | $ 5,200 | |||
Air T, Inc. [Member] | ||||
Marketable equity securities | $ 1,510 | $ 1,510 | $ 847 |
COMPOSITION OF CERTAIN FINANC_4
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Inventory) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials/purchased components | $ 4,019 | $ 4,241 |
Work in process | 2,328 | 2,339 |
Sub-assemblies/finished components | 2,226 | 1,438 |
Finished goods | 579 | 220 |
Total inventory | $ 9,152 | $ 8,238 |
COMPOSITION OF CERTAIN FINANC_5
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Marketable Equity Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Marketable equity securities - short-term | $ 2,884 | $ 2,560 |
Marketable equity securities - long-term | 3,238 | 2,360 |
Total marketable equity securities | $ 6,122 | $ 4,920 |
COMPOSITION OF CERTAIN FINANC_6
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Land and Building) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 6,499 | |
Less: accumulated depreciation | (15) | |
Land and building, net | 6,484 | |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 3,684 | |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 2,815 |
COMPOSITION OF CERTAIN FINANC_7
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Jun. 30, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Less accumulated amortization | $ (67) | $ (60) |
Intangible assets,net | 158 | 162 |
Patent-related costs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangibles | $ 225 | $ 222 |
WARRANTY (Narrative) (Details)
WARRANTY (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | |
Product Warranties Disclosures [Abstract] | ||||||||
Warranty expense | $ 182 | $ 44 | $ 254 | $ 56 | ||||
Warranty reserves | $ 347 | $ 141 | $ 347 | $ 141 | $ 190 | $ 213 | $ 126 | $ 136 |
WARRANTY (Movement in Warranty)
WARRANTY (Movement in Warranty) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||||
Beginning balance | $ 190 | $ 126 | $ 213 | $ 136 |
Accruals during the period | 175 | 28 | 255 | 53 |
Changes in estimates of prior period warranty accruals | 7 | 16 | (1) | 3 |
Warranty amortization | (25) | (29) | (120) | (51) |
Ending balance | $ 347 | $ 141 | $ 347 | $ 141 |
NET INCOME PER SHARE (Details)
NET INCOME PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Basic: | ||||
Net income - Basic | $ 337 | $ 1,249 | $ 1,602 | $ 2,354 |
Weighted average shares outstanding | 3,861 | 3,950 | 3,856 | 3,979 |
Basic income per share | $ 0.09 | $ 0.32 | $ 0.42 | $ 0.59 |
Diluted: | ||||
Net income - Diluted | $ 337 | $ 1,249 | $ 1,602 | $ 2,354 |
Weighted average shares outstanding | 3,861 | 3,950 | 3,856 | 3,979 |
Effect of dilutive securities | 151 | 103 | 158 | 103 |
Weighted average shares used in calculation of diluted earnings per share | 4,012 | 4,053 | 4,014 | 4,082 |
Diluted income per share | $ 0.08 | $ 0.31 | $ 0.4 | $ 0.58 |
SHARE-BASED COMPENSATION (Narra
SHARE-BASED COMPENSATION (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 02, 2020 | Dec. 31, 2020 | Feb. 28, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2014 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of awards granted during period | 40,000 | ||||||||
Performance Award [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Aggregate share-based compensation expense | $ 21 | $ 8 | $ 42 | $ 16 | |||||
Number of awards granted during period | 40,000 | 200,000 | |||||||
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 | $ 202 | 202 | $ 202 | ||||||
Weighted-average period | 3 years 5 months 27 days | ||||||||
Number of shares issued | 25,629 | ||||||||
Participant-related payroll tax liabilities | $ 259 | ||||||||
Non-qualified stock options [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of awards granted during period | 310,000 | ||||||||
Previously forfeited awards [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of awards granted during period | 48,000 | ||||||||
Weighted average fair value | $ 16.90 | ||||||||
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 | ||||||||
2016 Equity Incentive Plan [Member] | Directors and certain employees [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Aggregate share-based compensation expense | 18 | $ 18 | |||||||
Number of awards granted during period | 310,000 | ||||||||
Period for award description | completion of service periods that range from 18 months to 10.5 years at inception and the achievement of our common stock trading at certain pre-determined prices. | ||||||||
Employees Stock Option Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Intrinsic value of stock options outstanding | $ 919 | $ 919 | $ 919 | ||||||
Weighted average remaining contractual life | 11 months 1 day | ||||||||
ESPP [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Aggregate share-based compensation expense | $ 4 | $ 3 | |||||||
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) | 1,485 | 1,292 | |||||||
Exercise price (in dollars per share) | $ 16.94 | $ 11.76 | |||||||
ESPP [Member] | Cumulative basis [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares purchased and allocated to employee (in shares) | 23,271 |
SHARE-BASED COMPENSATION (Summa
SHARE-BASED COMPENSATION (Summary of Stock Option Activity) (Details) - $ / shares | 6 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding at July 1, | 54,000 | 54,000 |
Options granted | ||
Options exercised | (22,500) | |
Options forfeited | ||
Outstanding at end of period | 31,500 | 54,000 |
Stock Options Exercisable at end December 31, | 31,500 | 54,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Outstanding at July 1, (in dollars per share) | $ 1.86 | $ 1.86 |
Options granted (in dollars per share) | ||
Options exercised (in dollars per share) | 1.94 | |
Options forfeited (in dollars per share) | ||
Outstanding at end of period (in dollars per share) | 1.81 | 1.86 |
Stock Options Exercisable at December 31, (in dollars per share) | $ 1.81 | $ 1.86 |
MAJOR CUSTOMERS AND SUPPLIERS (
MAJOR CUSTOMERS AND SUPPLIERS (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | |
Concentration Risk [Line Items] | |||||
Accounts payable | $ 2,470 | $ 2,470 | $ 1,965 | ||
Purchase [Member] | Supplier One [Member] | |||||
Concentration Risk [Line Items] | |||||
Percentage of concentrations risk | 10.00% | 10.00% | 10.00% | 10.00% | |
Accounts payable | $ 656 | $ 656 | 161 | ||
Purchase [Member] | Supplier Two [Member] | |||||
Concentration Risk [Line Items] | |||||
Percentage of concentrations risk | 10.00% | 10.00% | 10.00% | 10.00% | |
Accounts payable | $ 345 | $ 345 | $ 245 | ||
Purchase [Member] | Supplier Three [Member] | |||||
Concentration Risk [Line Items] | |||||
Percentage of concentrations risk | 10.00% |
MAJOR CUSTOMERS AND SUPPLIERS_2
MAJOR CUSTOMERS AND SUPPLIERS (Sales) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | |
Concentration Risk [Line Items] | |||||
Net sales | $ 8,265 | $ 7,961 | $ 16,855 | $ 15,201 | |
Sales [Member] | |||||
Concentration Risk [Line Items] | |||||
Net sales | $ 8,265 | $ 7,961 | $ 16,855 | $ 15,201 | |
Percentage of concentrations risk | 100.00% | 100.00% | 100.00% | 100.00% | |
Sales [Member] | Customer 1 [Member] | |||||
Concentration Risk [Line Items] | |||||
Net sales | $ 5,809 | $ 5,655 | $ 10,978 | $ 11,067 | |
Percentage of concentrations risk | 70.00% | 71.00% | 65.00% | 73.00% | |
Sales [Member] | Customer 2 [Member] | |||||
Concentration Risk [Line Items] | |||||
Net sales | $ 1,221 | $ 697 | $ 3,391 | $ 1,121 | |
Percentage of concentrations risk | 15.00% | 9.00% | 20.00% | 7.00% | |
Sales [Member] | Customer 3 [Member] | |||||
Concentration Risk [Line Items] | |||||
Net sales | $ 658 | $ 797 | $ 1,127 | $ 1,340 | |
Percentage of concentrations risk | 8.00% | 10.00% | 7.00% | 9.00% | |
Sales [Member] | Customer [Member] | |||||
Concentration Risk [Line Items] | |||||
Net sales | $ 7,688 | $ 7,149 | $ 15,496 | $ 13,528 | |
Percentage of concentrations risk | 93.00% | 90.00% | 92.00% | 89.00% | |
Accounts Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Total gross accounts receivable | $ 4,625 | $ 4,625 | $ 5,161 | ||
Percentage of concentrations risk | 100.00% | 100.00% | |||
Accounts Receivable [Member] | Customer 1 [Member] | |||||
Concentration Risk [Line Items] | |||||
Total gross accounts receivable | 2,616 | $ 2,616 | $ 2,205 | ||
Percentage of concentrations risk | 57.00% | 42.00% | |||
Accounts Receivable [Member] | Customer 2 [Member] | |||||
Concentration Risk [Line Items] | |||||
Total gross accounts receivable | 1,385 | $ 1,385 | $ 1,593 | ||
Percentage of concentrations risk | 30.00% | 31.00% | |||
Accounts Receivable [Member] | Customer 3 [Member] | |||||
Concentration Risk [Line Items] | |||||
Total gross accounts receivable | 309 | $ 309 | $ 972 | ||
Percentage of concentrations risk | 6.00% | 19.00% | |||
Accounts Receivable [Member] | Customer [Member] | |||||
Concentration Risk [Line Items] | |||||
Total gross accounts receivable | $ 4,310 | $ 4,310 | $ 4,770 | ||
Percentage of concentrations risk | 93.00% | 92.00% |
NOTES PAYABLE AND FINANCING T_2
NOTES PAYABLE AND FINANCING TRANSACTIONS (Narrative) (Details) - Minnesota Bank & Trust [Member] - USD ($) | Nov. 06, 2020 | Dec. 31, 2020 |
Property Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, origination fee | $ 26,037 | |
Debt instrument, maturity date | Nov. 1, 2030 | |
Periodic payment of principal and interest | $ 30,000 | |
Balloon payment | $ 3,100,000 | |
Description of prepayment | Any prepayment of the Property Loan (other than monthly scheduled interest and principal payments), is subject to a prepayment fee equal to 4% of the principal amount prepaid for any prepayment made during the first or second year, 3% of the principal amount prepaid for any prepayment made during the third or fourth year, 2% of the principal amount prepaid for any prepayment made during the fifth or sixth year, and 1% of the principal amount prepaid for any prepayment made during the seventh or eighth year. | |
Debt instrument, face amount | $ 5,207,472 | |
Interest rate | 3.55% | |
Term Loan A [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date | Nov. 1, 2027 | |
Periodic payment of principal and interest | $ 109,168 | |
Debt instrument, face amount | 7,525,000 | |
Debt outstanding | $ 3,770,331 | $ 3,700,000 |
Interest rate | 3.84% | |
Term Loan B [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date | Nov. 1, 2027 | |
Periodic payment of principal and interest | $ 14,507 | |
Debt instrument, face amount | 1,000,000 | |
Debt outstanding | $ 0 | $ 0 |
Interest rate | 3.84% | |
Revolving Loan [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, maturity date | Nov. 5, 2021 | |
Debt instrument, face amount | $ 2,000,000 | |
Interest rate | 3.25% |
COMMON STOCK (Details)
COMMON STOCK (Details) - Share Repurchase Program [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cumulative basis [Member] | |||
Class of Stock [Line Items] | |||
Shares repurchased during the year, number of shares | 819,325 | ||
Shares repurchased during year, value | $ 8,500 | ||
10b5-1 Plan [Member] | |||
Class of Stock [Line Items] | |||
Number of authorized shares to repurchase, shares | 1,000,000 | ||
Shares repurchased during the year, number of shares | 106,897 | 156,685 | |
Shares repurchased during year, value | $ 1,535 | $ 2,215 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | Jul. 01, 2019 | |
Leases [Abstract] | ||||||
Operating lease right-of-use | $ 2,777 | $ 2,777 | $ 2,943 | $ 3,300 | ||
Operating lease liability current portion | $ 328 | $ 328 | ||||
Interest rate | 5.53% | 5.53% | ||||
Cash paid lease liability | $ 120 | $ 116 | $ 236 | $ 229 | ||
Remaining lease term | 6 years 9 months | 6 years 9 months |
LEASES (Schedule of Future Mini
LEASES (Schedule of Future Minimum Base Rental Payment) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 239 |
2022 | 489 |
2023 | 504 |
2024 | 519 |
2025 | 535 |
Thereafter | 1,261 |
Total lease payments | 3,547 |
Less imputed interest: | (610) |
Total | $ 2,937 |