Pro-Dex (PDEX) 10-Q 15 Nov 21 2022 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Sep. 30, 2021	Nov. 12, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2021
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--06-30
Entity File Number	0-14942
Entity Registrant Name	PRO-DEX, INC.
Entity Central Index Key	0000788920
Entity Tax Identification Number	84-1261240
Entity Incorporation, State or Country Code	CO
Entity Address, Address Line One	2361 McGaw Avenue
Entity Address, City or Town	Irvine
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92614
City Area Code	(949)
Local Phone Number	769-3200
Title of 12(b) Security	Common Stock, no par value
Trading Symbol	PDEX
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		3,660,161

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021
Current Assets:
Cash and cash equivalents	$ 5,177	$ 3,721
Investments	1,506	1,295
Accounts receivable, net of allowance for doubtful accounts of $7 and $2 at September 30, 2021 and at June 30, 2021, respectively	10,093	10,933
Deferred costs	184	193
Inventory	8,907	8,437
Prepaid expenses and other current assets	151	434
Total current assets	26,018	25,013
Land and building, net	6,413	6,437
Equipment and leasehold improvements, net	4,535	3,845
Right of use asset, net	2,518	2,605
Intangibles, net	195	186
Deferred income taxes, net	463	463
Investments	1,656	1,704
Other assets	67	67
Total assets	41,865	40,320
Current Liabilities:
Accounts payable	2,476	2,288
Accrued expenses	2,195	2,198
Deferred revenue	293	150
Note payable	1,248	1,236
Total current liabilities	6,212	5,872
Lease liability, net of current portion	2,342	2,432
Income taxes payable	709	397
Notes payable, net of current portion	11,219	11,535
Total non-current liabilities	14,270	14,364
Total liabilities	20,482	20,236
Shareholders’ Equity:
Common stock; no par value; 50,000,000 shares authorized; 3,666,319 and 3,645,660 shares issued and outstanding at September 30, 2021 and June 30, 2021, respectively	8,188	7,953
Retained earnings	13,195	12,131
Total shareholders’ equity	21,383	20,084
Total liabilities and shareholders’ equity	$ 41,865	$ 40,320

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2020
Statement of Financial Position [Abstract]
Accounts receivable, net of allowance for doubtful accounts	$ 7	$ 2
Common shares, no par value (in dollars per share)	$ 0	$ 0
Common shares, authorized	50,000,000	50,000,000
Common shares, issued	3,666,319	3,645,660
Common shares, outstanding	3,666,319	3,645,660

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Income Statement [Abstract]
Net sales	$ 9,988	$ 8,590
Cost of sales	6,560	5,115
Gross profit	3,428	3,475
Operating expenses:
Selling expenses	37	130
General and administrative expenses	1,093	705
Research and development costs	980	1,091
Total operating expenses	2,110	1,926
Operating income	1,318	1,549
Other income (expense):
Interest and miscellaneous income	24	53
Unrealized gain (loss) on marketable equity investments	149	(107)
Interest expense	(120)	(54)
Total other expense	53	(108)
Income before income taxes	1,371	1,441
Provision for income taxes	307	283
Net income	$ 1,064	$ 1,158
Basic net income per share	$ 0.29	$ 0.30
Diluted net income per share	$ 0.28	$ 0.29
Weighted average common shares outstanding:
Basic	3,651,334	3,850,838
Diluted	3,777,118	3,975,063
Common shares outstanding	3,666,319	3,858,251

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Retained Earnings [Member]	Total
Balance at beginning at Jun. 30, 2020	$ 12,752	$ 6,310	$ 19,062
Share-based compensation expense	26
Stock option exercise	39
Share repurchases
Shares withheld from common stock issued to pay employee payroll taxes	(259)
ESPP shares issued	25
Net income		1,158	1,158
Balance at end at Sep. 30, 2020	12,583	7,468	20,051
Balance at beginning at Jun. 30, 2021	7,953	12,131	20,084
Share-based compensation expense	300
Stock option exercise
Share repurchases	(95)
Shares withheld from common stock issued to pay employee payroll taxes
ESPP shares issued	30
Net income		1,064	1,064
Balance at end at Sep. 30, 2021	$ 8,188	$ 13,195	$ 21,383

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 1,064	$ 1,158
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	184	150
Share-based compensation	300	26
Unrealized (gain) loss on marketable equity investments	(149)	107
Non-cash lease expense	6	9
Amortization of loan fees	2	2
Gain on sale of investments	0	(12)
Bad debt expense	5	3
Changes in operating assets and liabilities:
Accounts receivable and other receivables	834	(986)
Deferred costs	9	13
Inventory	(470)	(75)
Prepaid expenses and other assets	284	(198)
Accounts payable and accrued expenses	177	(767)
Deferred revenue	143	0
Income taxes payable	312	(318)
Net cash provided by (used in) operating activities	2,701	(888)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of equipment and improvements	(848)	(89)
Purchases of investments	(14)	0
Increase in intangibles	(12)	(1)
Proceeds from sale of investments	0	115
Net cash provided by (used in) investing activities	(874)	25
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on notes payable	(306)	(161)
Payment of employee payroll taxes on net issuance of common stock	0	(259)
Proceeds from stock option exercises and ESPP contributions	30	64
Repurchases of common stock	(95)	0
Net cash used in financing activities	(371)	(356)
Net increase (decrease) in cash and cash equivalents	1,456	(1,219)
Cash and cash equivalents, beginning of period	3,721	6,421
Cash and cash equivalents, end of period	5,177	5,202
Non-cash investing and financing activity:
Cashless stock option exercise	45	0
Interest	121	54
Income taxes, net of refunds	$ 0	$ 747

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Sep. 30, 2021
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 principles generally in United States (“U.S. GAAP”) interim financial information and with the instructions to Form 10-Q and Regulation S-K. Accordingly, they not include all of the information and footnotes required U.S. GAAP for complete financial statements. These financial statements should be read in conjunction with the financial statements presented in our Annual Report Form 10-K for the fiscal year ended June 30, 2021. In the opinion of management, all adjustments considered necessary for 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, 2021. Recently Adopted Accounting Standards In December 2019, the FASB issued ASU 2019-12 Income Taxes (Topic 740)—Simplifying the Accounting for Income Taxes, to remove certain exceptions related to the approach for intraperiod tax allocation, recognition of deferred tax liabilities for outside basis differences and requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The amendments in this update are effective for us beginning with fiscal year 2022. The adoption of the amendments in this update did not have a material impact as of September 30, 2021 and is also not expected to have a material impact for the year ending June 30, 2022.

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	3 Months Ended
	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS	NOTE 2. DESCRIPTION OF BUSINESS 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 condensed 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.

REVISION OF PREVIOUSLY ISSUED F

REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS FOR CORRECTION OF IMMATERIAL ERRORS	3 Months Ended
	Sep. 30, 2021
Accounting Changes and Error Corrections [Abstract]
REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS FOR CORRECTION OF IMMATERIAL ERRORS	NOTE 3. REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS FOR CORRECTION OF IMMATERIAL ERRORS We failed to timely adopt ASU 2016-01 – Accounting for Financial Instruments – Classification and Measurement, which states in part that changes in fair value of equity investments must be recognized in net income. We have completed an evaluation of the quantitative and qualitative impact of this error in our historical financial statements and concluded that our historical financial statements are not materially misstated. Accordingly, the prior year financial statements have been revised to reflect the impact of ASU 2016-1. The revised classification and reported values of our unrealized gains (losses) on marketable equity investments as accounted for under ASU2016-01 are included in the condensed consolidated financial statements herein. The impact to net income for the three months ended September 30, 2020 was a reduction of $107,000 with a corresponding increase in unrealized loss on marketable equity securities of $107,000, previously presented in other comprehensive income (loss). The revision resulted in a reduction to both basic and diluted earnings per share of $.03. As of June 30, 2021, the revision reclassified the remaining accumulated other comprehensive loss of $215,000 to retained earnings.

COMPOSITION OF CERTAIN FINANCIA

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS	3 Months Ended
	Sep. 30, 2021
Composition Of Certain Financial Statement Items
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS	NOTE 4. COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS Investments Investments are stated at fair market value and consist of the following (in thousands): Schedule of investments September 30, June 30, Marketable equity securities - short-term $ 1,506 $ 1,295 Marketable equity securities - long-term 1,656 1,704 Total marketable equity securities $ 3,162 $ 2,999 Investments at September 30, 2021 and June 30, 2021 had an aggregate cost basis $ 3,219,000 3,204,000 66,000 (gross unrealized losses of $ 448,000 382,000 the investments included net unrealized losses of $ 215,000 386,000 171,000 Of the total marketable equity securities at September 30, 2021 and June 30, 2021, $ 1,420,000 1,224,000 We invest surplus cash from time to time through our Investment Committee, which is comprised of one management director, Mr. Van Kirk, and two non-management directors, Mr. Cabillot and Mr. Swenson, who chairs the committee. Both Mr. Cabillot and Mr. Swenson are active investors with extensive portfolio management expertise. We leverage the experience of these committee members to make investment decisions for the investment of our surplus operating capital or borrowed funds. Additionally, many of our securities holdings include stocks of public companies that either Messrs. Swenson or Cabillot or both may own from time to time either individually or through the investment funds that they manage, or other companies whose boards they sit on, such as Air T, Inc. Inventory Inventory is stated at the lower of cost (first-in, first-out) or net realizable value and consists of the following (in thousands): Schedule of inventory September 30, June 30, Raw materials/purchased components $ 3,856 $ 3,967 Work in process 2,833 2,218 Sub-assemblies/finished components 1,791 1,738 Finished goods 427 514 Total inventory $ 8,907 $ 8,437 Intangibles Intangibles consist of the following (in thousands): Schedule of intangibles September 30, June 30, Patent-related costs $ 272 $ 260 Less accumulated amortization (77 ) (74 ) $ 195 $ 186 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	3 Months Ended
	Sep. 30, 2021
Guarantees and Product Warranties [Abstract]
WARRANTY	NOTE 5. WARRANTY The warranty accrual is based on historical costs of warranty repairs and expected future identifiable warranty expenses and is included in accrued expenses in the accompanying balance sheets. As of September 30, 2021 and June 30, 2021, the warranty reserve amounted to $ 232,000 221,000 Information regarding the accrual for warranty costs for the three months ended September 30, 2021 and 2020 are as follows (in thousands): Schedule of accrual warranty costs As of and for the 2021 2020 Beginning balance $ 221 $ 213 Accruals during the period 32 80 Changes in estimates of prior period warranty accruals (8 ) (8 ) Warranty amortization/utilization (13 ) (95 ) Ending balance $ 232 $ 190

NET INCOME PER SHARE

NET INCOME PER SHARE	3 Months Ended
	Sep. 30, 2021
Earnings Per Share [Abstract]
NET INCOME PER SHARE	NOTE 6. 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. Diluted income per share reflects the effects of potentially dilutive securities, 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 income per share computations. In the tables below, income amounts represent the numerator, and share amounts represent the denominator (in thousands, except per share amounts): Schedule of reconciliations of the numerators and denominators of the basic and diluted earnings (loss) per share computations for net income (loss) Three Months Ended 2021 2020 Basic: Net income $ 1,064 $ 1,158 Weighted-average shares outstanding 3,651 3,851 Basic earnings per share $ 0.29 $ 0.30 Diluted: Net income $ 1,064 $ 1,158 Weighted-average shares outstanding 3,651 3,851 Effect of dilutive securities 126 124 Weighted-average shares used in calculation of diluted earnings per share 3,777 3,975 Diluted earnings per share $ 0.28 $ 0.29

INCOME TAXES

INCOME TAXES	3 Months Ended
	Sep. 30, 2021
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 7. INCOME TAXES Deferred income taxes are provided on liability method whereby deferred tax assets and liabilities are recognized for temporary differences. Temporary differences are the differences between the reported amounts assets and liabilities and their tax bases. Deferred assets are reduced by valuation allowance when, in the opinion management, it is more likely than not that some portion or deferred tax assets will not realized. Deferred tax assets and liabilities are adjusted for the effects changes in tax laws and rates the date of enactment. Significant management judgment is required in determining our provision for income taxes and the recoverability our deferred tax assets. Such determination is based primarily on our historical taxable income or loss, with some consideration given our estimates future taxable income loss 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 September 30, 2021, we recognized accrued interest of $ 51,000 22 20 We are subject to U.S. federal income tax, well income tax multiple state tax jurisdictions. We are currently open audit under the statute of limitations by the Internal Revenue Service for the years ended June 30, 2018 and later. Our state income tax returns are open audit under the statute of limitations for the years ended June 30, 2017 and later. However, because of research credit carryovers, substantially all of our tax years are subject to audit. We do not anticipate significant change the total amount unrecognized tax benefits within the next months.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	3 Months Ended
	Sep. 30, 2021
Share-based Payment Arrangement [Abstract]
SHARE-BASED COMPENSATION	NOTE 8. SHARE-BASED COMPENSATION Through 2014, we had two equity compensation plans, the Second Amended and Restated 2004 Stock Option Plan (the “Employee Stock Option Plan”) and the Amended and Restated 2004 Directors’ Stock Option Plan (the “Directors’ Stock Option Plan”) (collectively, the “Former Stock Option Plans”). The Employee Stock Option Plan and Directors’ 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 1,500,000 200,000 372,000 Former Stock Option Plans There were no stock options granted during the three months ended September 30, 2021 and 2020. September 30, 2021, there was no unrecognized compensation cost under our Former Stock Option Plans outstanding stock options under those plans are fully vested. 6,500 1.82 1.04 155,000 25,000 20,000 1.80 1.97 Performance Awards In December 2017, the Compensation Committee of our Board of Directors granted 200,000 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. 48,000 16.90 21,000 139,000 2.73 On July 1, 2020, it was determined by the Compensation Committee of our Board of Directors that the vesting of the second of five tranches of 40,000 40,000 25,629 259,000 Non-Qualified Stock Options In December 2020, the Compensation Committee of our Board of Directors granted 310,000 non-qualified 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. 274,000 0 3.9 In February 2021, the Compensation Committee of our Board of Directors granted 62,000 non-qualified 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 4 months to 1.3 years at inception and the achievement of our common stock trading at certain pre-determined prices. Of these 62,000 stock options, 57,750 vested on July 1, 2021, as our common stock met the pre-determined prices set forth in the underlying agreements. The weighted-average fair value of the stock option awards granted was $3.16, 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”). The ESPP conforms to the provisions of Section 423 of the Internal Revenue Code, has coterminous offering and purchase periods of six months, and bases the pricing to purchase shares of our common stock on a formula so as to result in a per-share purchase price that approximates a 15% discount from the market price of a share of our common stock at the end of the purchase period. The Board of Directors also approved the provision that shares formerly reserved for issuance under the Former Stock Option Plans in excess of shares issuable pursuant to outstanding options, aggregating 704,715 During the first quarters ended September 30, 2021 and 2020, 1,130 1,485 26.17 16.94 25,593 5,000

MAJOR CUSTOMERS & SUPPLIERS

MAJOR CUSTOMERS & SUPPLIERS	3 Months Ended
	Sep. 30, 2021
Risks and Uncertainties [Abstract]
MAJOR CUSTOMERS & SUPPLIERS	NOTE 9. MAJOR CUSTOMERS & SUPPLIERS Information with respect to customers accounted for sales in excess of 10 either of three-month periods ended September 30, 2021 and 2020 is as follows (in thousands, except percentages): Schedule of sales by major customers Three Months Ended September 30, 2021 2020 Amount Percent of Total Amount Percent of Total Total revenue $ 9,988 100 % $ 8,590 100 % Customer concentration: Customer 1 $ 6,991 70 % $ 5,169 60 % Customer 2 879 9 % 2,171 25 % Total $ 7,870 79 % $ 7,340 85 % Information with respect to accounts receivable from those customers that comprised more than 10 Schedule of accounts receivable of major customers September 30, 2021 June 30, 2021 Total gross accounts receivable $ 10,100 100 % $ 10,935 100 % Customer concentration: Customer 1 $ 7,622 75 % $ 6,666 61 % Customer 2 1,311 13 % 3,710 34 % Total $ 8,933 88 % $ 10,376 95 % During the three months ended September 30, 2021 and 2020, we had three and two suppliers, respectively, that each accounted for more than 10% of total inventory purchases. Amounts owed to the fiscal 2022 significant suppliers at September 30, 2021 totaled $233,000, $177,000 and $306,000, respectively, and at June 30, 2021 totaled $184,000, $206,000 and $225,000, respectively.

NOTES PAYABLE AND FINANCING TRA

NOTES PAYABLE AND FINANCING TRANSACTIONS	3 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
NOTES PAYABLE AND FINANCING TRANSACTIONS	NOTE 10. NOTES PAYABLE AND FINANCING TRANSACTIONS Minnesota Bank & Trust (“MBT”) On November 6, 2020 (the “Closing Date”), PDEX Franklin, a newly created wholly owned subsidiary of the Company, purchased an approximate 25,000 square foot industrial building in Tustin, California (the “Franklin Property”). A portion of the purchase price was financed by a loan from MBT to PDEX Franklin in the principal amount of approximately $ 5.2 The Property Loan bears interest at a fixed rate of 3.55 30,000 November 1, 2030 3.1 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. The balance owed on the Property Loan at September 30, 2021 is $5,074,000. On the Closing Date, we also entered into an Amended and Restated Credit Agreement with MBT (the “Amended Credit Agreement”), providing for a $ 7,525,000 1,000,000 2,000,000 3,770,331 3,000,000 The Term Loan A matures on November 1, 2027 3.84 97,000 6,489,000 The Term Loan B matures on November 1, 2027 3.84 15,000 966,000 The Revolving Loan may be borrowed against from time to time through its maturity date of November 5, 2021 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	3 Months Ended
	Sep. 30, 2021
Equity [Abstract]
COMMON STOCK	NOTE 11. COMMON STOCK Share Repurchase Program In December 2019, our Board approved a new share repurchase program authorizing us to repurchase up to 1 3,616 95,000 1,039,112 14.1

LEASES

LEASES	3 Months Ended
	Sep. 30, 2021
Leases
LEASES	NOTE 12. 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 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 September 30, 2021, in the amount of $ 353,000 As of September 30, 2021, our operating lease has a remaining lease term of six 6 5.53 120,000 12,000 As of September 30, 2021, the maturity of our lease liability is as follows (in thousands): Schedule of Maturities of Lease Liabilities Operating Lease Fiscal Year: 2022 $ 369 2023 504 2024 519 2025 535 2026 551 Thereafter 710 Total lease payments 3,188 Less imputed interest (493 ) Total $ 2,695

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 13. COMMITMENTS AND CONTINGENCIES Legal Matters On August 24, 2021, one of our customers, through its counsel, sent notice that it is seeking indemnification from us regarding a pending complaint filed by a third-party claiming patent infringement on one of the products that we manufacture for this customer. Our assessment of the alleged claim is ongoing. As of the date of this filing, our position is that there is no infringement and/or that the patent at issue is invalid. In addition to the above matter, we may be involved in legal proceedings arising either in the ordinary course of our business or 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 or adverse.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Sep. 30, 2021
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 14. SUBSEQUENT EVENTS On November 5, 2021, we entered into Amendment No. 1 to Amended and Restated Credit Agreement (the “Amendment”), which amends our Amended and Restated Credit Agreement with MBT to extend the maturity date of our existing $ 2,000,000 November 5, 2023 annual interest rate to the greater of (a) 2.75% or (b) the prime rate minus 0.5% the Money Rates section of the Wall Street Journal.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	3 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards In December 2019, the FASB issued ASU 2019-12 Income Taxes (Topic 740)—Simplifying the Accounting for Income Taxes, to remove certain exceptions related to the approach for intraperiod tax allocation, recognition of deferred tax liabilities for outside basis differences and requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The amendments in this update are effective for us beginning with fiscal year 2022. The adoption of the amendments in this update did not have a material impact as of September 30, 2021 and is also not expected to have a material impact for the year ending June 30, 2022.

COMPOSITION OF CERTAIN FINANC_2

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Tables)	3 Months Ended
	Sep. 30, 2021
Composition Of Certain Financial Statement Items
Schedule of investments	Schedule of investments September 30, June 30, Marketable equity securities - short-term $ 1,506 $ 1,295 Marketable equity securities - long-term 1,656 1,704 Total marketable equity securities $ 3,162 $ 2,999
Schedule of inventory	Schedule of inventory September 30, June 30, Raw materials/purchased components $ 3,856 $ 3,967 Work in process 2,833 2,218 Sub-assemblies/finished components 1,791 1,738 Finished goods 427 514 Total inventory $ 8,907 $ 8,437
Schedule of intangibles	Schedule of intangibles September 30, June 30, Patent-related costs $ 272 $ 260 Less accumulated amortization (77 ) (74 ) $ 195 $ 186

WARRANTY (Tables)

WARRANTY (Tables)	3 Months Ended
	Sep. 30, 2021
Guarantees and Product Warranties [Abstract]
Schedule of accrual warranty costs	Schedule of accrual warranty costs As of and for the 2021 2020 Beginning balance $ 221 $ 213 Accruals during the period 32 80 Changes in estimates of prior period warranty accruals (8 ) (8 ) Warranty amortization/utilization (13 ) (95 ) Ending balance $ 232 $ 190

NET INCOME PER SHARE (Tables)

NET INCOME PER SHARE (Tables)	3 Months Ended
	Sep. 30, 2021
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)	Schedule of reconciliations of the numerators and denominators of the basic and diluted earnings (loss) per share computations for net income (loss) Three Months Ended 2021 2020 Basic: Net income $ 1,064 $ 1,158 Weighted-average shares outstanding 3,651 3,851 Basic earnings per share $ 0.29 $ 0.30 Diluted: Net income $ 1,064 $ 1,158 Weighted-average shares outstanding 3,651 3,851 Effect of dilutive securities 126 124 Weighted-average shares used in calculation of diluted earnings per share 3,777 3,975 Diluted earnings per share $ 0.28 $ 0.29

MAJOR CUSTOMERS & SUPPLIERS (Ta

MAJOR CUSTOMERS & SUPPLIERS (Tables)	3 Months Ended
	Sep. 30, 2021
Risks and Uncertainties [Abstract]
Schedule of sales by major customers	Schedule of sales by major customers Three Months Ended September 30, 2021 2020 Amount Percent of Total Amount Percent of Total Total revenue $ 9,988 100 % $ 8,590 100 % Customer concentration: Customer 1 $ 6,991 70 % $ 5,169 60 % Customer 2 879 9 % 2,171 25 % Total $ 7,870 79 % $ 7,340 85 %
Schedule of accounts receivable of major customers	Schedule of accounts receivable of major customers September 30, 2021 June 30, 2021 Total gross accounts receivable $ 10,100 100 % $ 10,935 100 % Customer concentration: Customer 1 $ 7,622 75 % $ 6,666 61 % Customer 2 1,311 13 % 3,710 34 % Total $ 8,933 88 % $ 10,376 95 %

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Sep. 30, 2021
Leases
Schedule of Maturities of Lease Liabilities	Schedule of Maturities of Lease Liabilities Operating Lease Fiscal Year: 2022 $ 369 2023 504 2024 519 2025 535 2026 551 Thereafter 710 Total lease payments 3,188 Less imputed interest (493 ) Total $ 2,695

REVISION OF PREVIOUSLY ISSUED_2

REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS FOR CORRECTION OF IMMATERIAL ERRORS (Details Narrative)	3 Months Ended
	Sep. 30, 2020
Accounting Changes and Error Corrections [Abstract]
Immaterial Error Correction	the prior year financial statements have been revised to reflect the impact of ASU 2016-1. The revised classification and reported values of our unrealized gains (losses) on marketable equity investments as accounted for under ASU2016-01 are included in the condensed consolidated financial statements herein. The impact to net income for the three months ended September 30, 2020 was a reduction of $107,000 with a corresponding increase in unrealized loss on marketable equity securities of $107,000, previously presented in other comprehensive income (loss). The revision resulted in a reduction to both basic and diluted earnings per share of $.03. As of June 30, 2021, the revision reclassified the remaining accumulated other comprehensive loss of $215,000 to retained earnings.

COMPOSITION OF CERTAIN FINANC_3

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Marketable Equity Securities) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021
Composition Of Certain Financial Statement Items
Marketable equity securities - short-term	$ 1,506	$ 1,295
Marketable equity securities - long-term	1,656	1,704
Total marketable equity securities	$ 3,162	$ 2,999

COMPOSITION OF CERTAIN FINANC_4

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Inventory) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2021
Composition Of Certain Financial Statement Items
Raw materials/purchased components	$ 3,856	$ 3,967
Work in process	2,833	2,218
Sub-assemblies/finished components	1,791	1,738
Finished goods	427	514
Total inventory	$ 8,907	$ 8,437

COMPOSITION OF CERTAIN FINANC_5

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Intangible Assets) (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Jun. 30, 2020
Finite-Lived Intangible Assets [Line Items]
Less accumulated amortization	$ (77)	$ (74)
Intangible assets,net	195	186
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangibles	$ 272	$ 260

COMPOSITION OF CERTAIN FINANC_6

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2021	Jun. 30, 2021
Composition Of Certain Financial Statement Items
Aggregate cost	$ 3,219,000	$ 3,204,000
Net unrealized losses	66,000	215,000
Gross unrealized losses	448,000	386,000
Gross unrealized gains	382,000	171,000
Marketable equity securities	$ 1,420,000	$ 1,224,000

WARRANTY (Movement in Warranty)

WARRANTY (Movement in Warranty) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Guarantees and Product Warranties [Abstract]
Beginning balance	$ 221	$ 213
Accruals during the period	32	80
Changes in estimates of prior period warranty accruals	(8)	(8)
Warranty amortization and utilization	(13)	(95)
Ending balance	$ 232	$ 190

WARRANTY (Details Narrative)

WARRANTY (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2021	Jun. 30, 2021
Guarantees and Product Warranties [Abstract]
Warranty reserve	$ 232,000	$ 221,000

NET INCOME PER SHARE (Details)

NET INCOME PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Net income	$ 1,064	$ 1,158
Basic earnings per share	$ 0.29	$ 0.30
Diluted earnings per share	$ 0.28	$ 0.29
Basic [Member]
Net income	$ 1,064	$ 1,158
Weighted average shares outstanding	3,651	3,851
Basic earnings per share	$ 0.29	$ 0.30
Diluted [Member]
Net income	$ 1,064	$ 1,158
Weighted average shares outstanding	3,651	3,851
Effect of dilutive securities	126	124
Weighted average shares used in calculation of diluted earnings per share	3,777	3,975
Diluted earnings per share	$ 0.28	$ 0.29

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 51,000
Expected annual effective tax rate	22.00%	20.00%

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details Narrative) - USD ($)	Jul. 02, 2020	Feb. 28, 2021	Dec. 31, 2020	Feb. 28, 2020	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2021	Sep. 30, 2021	Sep. 30, 2016	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of awards granted during period	40,000
Number of shares outstanding					6,500			6,500
Weighted-average exercise prices					$ 1.82			$ 1.82
Weighted-average remaining contractual life					1 year 14 days
Intrinsic value					$ 155,000			$ 155,000
Stock Option Plans were exercised					25,000	20,000
Exercise prices					$ 1.80	$ 1.97		$ 1.80
Shares purchased					1,130	1,485
Contributions discount prices					$ 26.17	$ 16.94
Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of forfeited awards shares during period				48,000
Weighted average fair value				$ 16.90
Non Qualified Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of awards granted during period							372,000
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of awards granted during period	40,000						200,000
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award							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.
Aggregate share-based compensation expense					$ 21,000	$ 21,000
Unrecognized compensation cost					139,000			$ 139,000
Weighted-average period							2 years 8 months 23 days
Number of shares issued	25,629
Participant-related payroll tax liabilities	$ 259,000
Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available to be awarded									1,500,000
Number of awards granted during period							200,000
Equity Incentive Plan [Member] | Directors And Certain Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award			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.
Aggregate share-based compensation expense					274,000	0
Unrecognized compensation cost					3,900,000			$ 3,900,000
Equity Incentive Plan [Member] | Directors And Certain Employees Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award		the completion of service periods that range from 4 months to 1.3 years at inception and the achievement of our common stock trading at certain pre-determined prices. Of these 62,000 stock options, 57,750 vested on July 1, 2021, as our common stock met the pre-determined prices set forth in the underlying agreements. The weighted-average fair value of the stock option awards granted was $3.16, calculated using a Monte Carlo simulation.
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate share-based compensation expense					$ 5,000	$ 5,000
Number of shares reserved for future issuance										704,715
Employee Stock Purchase Plan [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)								25,593

MAJOR CUSTOMERS AND SUPPLIERS (

MAJOR CUSTOMERS AND SUPPLIERS (Sales) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Concentration Risk [Line Items]
Net sales	$ 9,988	$ 8,590
Sales [Member]
Concentration Risk [Line Items]
Net sales	$ 9,988	$ 8,590
Percentage of concentrations risk	100.00%	100.00%
Sales [Member] | Customer Concentration Risk 1 [Member]
Concentration Risk [Line Items]
Net sales	$ 6,991	$ 5,169
Percentage of concentrations risk	70.00%	60.00%
Sales [Member] | Customer Concentration Risk 2 [Member]
Concentration Risk [Line Items]
Net sales	$ 879	$ 2,171
Percentage of concentrations risk	9.00%	25.00%
Sales [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Net sales	$ 7,870	$ 7,340
Percentage of concentrations risk	79.00%	85.00%

MAJOR CUSTOMERS AND SUPPLIERS_2

MAJOR CUSTOMERS AND SUPPLIERS (Acocountsrecivable) (Details1) - Accounts Receivable [Member] - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2021	Jun. 30, 2021
Concentration Risk [Line Items]
Total gross accounts receivable	$ 10,100	$ 10,935
Percentage of concentrations risk	100.00%	100.00%
Customer Concentration Risk 1 [Member]
Concentration Risk [Line Items]
Total gross accounts receivable	$ 7,622	$ 6,666
Percentage of concentrations risk	75.00%	61.00%
Customer Concentration Risk 2 [Member]
Concentration Risk [Line Items]
Total gross accounts receivable	$ 1,311	$ 3,710
Percentage of concentrations risk	13.00%	34.00%
Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Total gross accounts receivable	$ 8,933	$ 10,376
Percentage of concentrations risk	88.00%	95.00%

MAJOR CUSTOMERS & SUPPLIERS (De

MAJOR CUSTOMERS & SUPPLIERS (Details Narrative)	3 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2021
Concentration Risk [Line Items]
Major customers suppliers description	Amounts owed to the fiscal 2022 significant suppliers at September 30, 2021 totaled $233,000, $177,000 and $306,000, respectively, and at June 30, 2021 totaled $184,000, $206,000 and $225,000, respectively.
Purchase [Member] | Supplier Concentration Risk [Member]
Concentration Risk [Line Items]
Percentage of concentrations risk	10.00%	10.00%
Purchase [Member] | Supplier Concentration Risk One [Member]
Concentration Risk [Line Items]
Percentage of concentrations risk	10.00%		10.00%

NOTES PAYABLE AND FINANCING T_2

NOTES PAYABLE AND FINANCING TRANSACTIONS (Details Narrative) - Minnesota Bank And Trust [Member] - USD ($)	Nov. 06, 2020	Mar. 31, 2021	Sep. 30, 2021
Property Loan [Member]
Short-term Debt [Line Items]
Debt instrument, face amount	$ 5,200,000
Interest rate	3.55%
Periodic payment of principal and interest	$ 30,000
Debt instrument, maturity date	Nov. 1, 2030
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. 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. The balance owed on the Property Loan at September 30, 2021 is $5,074,000.
Term Loan One [Member]
Short-term Debt [Line Items]
Debt instrument, face amount	$ 7,525,000
Interest rate	3.84%
Periodic payment of principal and interest	$ 97,000
Debt instrument, maturity date	Nov. 1, 2027
Debt outstanding	$ 3,770,331		$ 6,489,000
Additional amount borrowed		$ 3,000,000
Term Loan Two [Member]
Short-term Debt [Line Items]
Debt instrument, face amount	$ 1,000,000
Interest rate	3.84%
Periodic payment of principal and interest	$ 15,000
Debt instrument, maturity date	Nov. 1, 2027
Debt outstanding			$ 966,000
Revolving Loan [Member]
Short-term Debt [Line Items]
Debt instrument, face amount	$ 2,000,000
Debt instrument, maturity date	Nov. 5, 2021

COMMON STOCK (Details Narrative

COMMON STOCK (Details Narrative) - Share Repurchase Program [Member] - USD ($)	3 Months Ended		96 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021
Cumulative Basis [Member]
Equity, Class of Treasury Stock [Line Items]
Shares repurchased during the year, number of shares			1,039,112
Shares repurchased during year, value			$ 14,100,000
10b5-1 Plan [Member]
Equity, Class of Treasury Stock [Line Items]
Number of authorized shares to repurchase, shares	1,000,000		1,000,000
Shares repurchased during the year, number of shares		3,616
Shares repurchased during year, value	$ 95,000

LEASES (Schedule of Future Mini

LEASES (Schedule of Future Minimum Base Rental Payment) (Details) $ in Thousands	Sep. 30, 2021USD ($)
Leases
2022	$ 369
2023	504
2024	519
2025	535
2026	551
Thereafter	710
Total lease payments	3,188
Less imputed interest	(493)
Total	$ 2,695

LEASES (Details Narrative)

LEASES (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Jul. 01, 2019
Leases
Operating lease right-of-use	$ 2,518,000	$ 2,605,000	$ 3,300,000
Operating lease liability current portion	$ 353,000
Remaining lease term	6 years
Interest rate	5.53%
Cash paid lease liability	$ 120,000
Cash paid for common area maintenance charges	$ 12,000

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member]	Nov. 05, 2021USD ($)	Nov. 05, 2021USD ($)
Subsequent Event [Line Items]
Revolving credit	$ 2,000,000	$ 2,000,000
Maturity date		Nov. 5, 2023
Line of Credit Facility, Interest Rate Description	annual interest rate to the greater of (a) 2.75% or (b) the prime rate minus 0.5%