Cover
Cover - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Sep. 06, 2022 | Dec. 31, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Jun. 30, 2022 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity File Number | 000-14942 | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 Public Float | $ 50,100,000 | ||
Entity Common Stock, Shares Outstanding | 3,619,189 | ||
Auditor Name | Moss Adams LLP | ||
Auditor Location | Irvine, California | ||
Auditor Firm ID | 659 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 849 | $ 3,721 |
Investments | 755 | 1,295 |
Accounts receivable, net of allowance for doubtful accounts of $0 and $2 at June 30, 2022 and 2021, respectively | 15,384 | 10,933 |
Deferred costs | 710 | 193 |
Inventory | 12,678 | 8,437 |
Prepaid expenses and other current assets | 790 | 434 |
Total current assets | 31,166 | 25,013 |
Land and building, net | 6,343 | 6,437 |
Equipment and improvements, net | 4,833 | 3,845 |
Right of use asset, net | 2,248 | 2,605 |
Intangibles, net | 118 | 186 |
Deferred income taxes, net | 797 | 463 |
Investments | 1,779 | 1,704 |
Other assets | 42 | 67 |
Total assets | 47,326 | 40,320 |
Current liabilities: | ||
Accounts payable | 3,761 | 2,288 |
Accrued liabilities | 2,751 | 2,198 |
Income taxes payable | 544 | 397 |
Deferred revenue | 1,013 | 150 |
Notes payable | 3,285 | 1,236 |
Total current liabilities | 11,354 | 6,269 |
Non-current liabilities: | ||
Lease liability, net of current portion | 2,054 | 2,432 |
Notes payable, net of current portion | 10,250 | 11,535 |
Total non-current liabilities | 12,304 | 13,967 |
Total liabilities | 23,658 | 20,236 |
Shareholders’ equity: | ||
Common stock, no par value, 50,000,000 shares authorized; 3,596,131 and 3,645,660 shares issued and outstanding at June 30, 2022 and 2021, respectively | 7,682 | 7,953 |
Retained earnings | 15,986 | 12,131 |
Total shareholders’ equity | 23,668 | 20,084 |
Total liabilities and shareholders’ equity | $ 47,326 | $ 40,320 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 0 | $ 2 |
Common shares, par value | $ 0 | $ 0 |
Common shares, authorized | 50,000,000 | 50,000,000 |
Common shares, issued | 3,596,131 | 3,645,660 |
Common shares, outstanding | 3,596,131 | 3,645,660 |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||
Net sales | $ 42,041 | $ 38,029 |
Cost of sales | 28,909 | 24,454 |
Gross profit | 13,132 | 13,575 |
Operating expenses: | ||
Selling expenses | 91 | 590 |
General and administrative expenses | 4,903 | 4,076 |
Loss on disposal of equipment | 35 | |
Research and development costs | 2,980 | 4,384 |
Total operating expenses | 8,009 | 9,050 |
Operating income | 5,123 | 4,525 |
Other income (expense): | ||
Interest and dividend income | 76 | 126 |
Unrealized gain (loss) on marketable equity investments | (57) | 1,371 |
Gain on sale of investments | 28 | 1,327 |
Interest expense | (464) | (352) |
Total other income (expense) | (417) | 2,472 |
Income before income taxes | 4,706 | 6,997 |
Income tax expense | 851 | 1,176 |
Net income | $ 3,855 | $ 5,821 |
Basic & Diluted income per share: | ||
Basic net income per share | $ 1.06 | $ 1.53 |
Diluted net income per share | $ 1.02 | $ 1.48 |
Weighted-average common shares outstanding: | ||
Basic | 3,635,894 | 3,796,516 |
Diluted | 3,763,345 | 3,936,194 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Retained Earnings [Member] | Total | |
Beginning balance, value at Jun. 30, 2020 | $ 12,752 | $ 6,310 | $ 19,062 | |
Balance at beginning (in shares) at Jun. 30, 2020 | 3,811,137 | |||
Net income | 5,821 | 5,821 | ||
ESPP shares issued | $ 57 | 57 | ||
ESPP shares issued (in shares) | 2,677 | |||
Shares issued in connection with performance award vesting | ||||
Shares issued in connection with performance award vesting (in shares) | 40,000 | |||
Shares withheld from common stock issued to pay employee payroll taxes | $ (259) | (259) | ||
Shares withheld from common stock issued to pay employee payroll taxes (in shares) | (14,371) | |||
Exercise of stock options | [1] | $ 39 | 39 | |
Exercise of stock options (in shares) | [1] | 22,388 | ||
Share-based compensation | $ 901 | 901 | ||
Share repurchases | $ (5,537) | (5,537) | ||
Share repurchases (in shares) | (216,171) | |||
Ending balance, value at Jun. 30, 2021 | $ 7,953 | 12,131 | 20,084 | |
Balance at end (in shares) at Jun. 30, 2021 | 3,645,660 | |||
Net income | 3,855 | 3,855 | ||
ESPP shares issued | $ 60 | 60 | ||
ESPP shares issued (in shares) | 2,576 | |||
Exercise of stock options | [2] | |||
Exercise of stock options (in shares) | [2] | 23,145 | ||
Share-based compensation | $ 1,275 | 1,275 | ||
Share repurchases | $ (1,606) | (1,606) | ||
Share repurchases (in shares) | (75,250) | |||
Ending balance, value at Jun. 30, 2022 | $ 7,682 | $ 15,986 | $ 23,668 | |
Balance at end (in shares) at Jun. 30, 2022 | 3,596,131 | |||
[1]Excludes 112 shares forfeited to affect a cashless exercise.[2]Excludes 1,855 shares forfeited to affect a cashless exercise. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 3,855 | $ 5,821 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 726 | 686 |
Unrealized (gain) loss on marketable equity investments | 57 | (1,371) |
Gain on sale of investments | (28) | (1,327) |
Impairment of long-lived assets | 84 | |
Non-cash lease expense | 13 | 26 |
Loss on sale or disposal of equipment | 35 | |
Amortization of loan fees | 9 | 49 |
Share-based compensation | 1,275 | 901 |
Deferred income taxes | (334) | (181) |
Bad debt expense (recovery) | (2) | 5 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (4,449) | (5,783) |
Deferred costs | (517) | (38) |
Inventory | (4,241) | (199) |
Prepaid expenses and other assets | (331) | (314) |
Accounts payable and accrued expenses | 1,991 | 105 |
Deferred revenue | 863 | (50) |
Income taxes payable | 147 | (408) |
Net cash used in operating activities | (847) | (2,078) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of equipment and improvements | (1,638) | (1,769) |
Purchase of land and building | (6,499) | |
Proceeds from sale of investments | 770 | 4,596 |
Increase in intangibles | (33) | (38) |
Purchase of investments | (334) | |
Net cash used in investing activities | (1,235) | (3,710) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Principal payments on notes payable | (1,244) | (351) |
Borrowing from Minnesota Bank & Trust, net of loan origination fees | 2,000 | 9,139 |
Repurchases of common stock | (1,606) | (5,537) |
Payments of employee taxes on net issuance of common stock | (259) | |
Proceeds from exercise of stock options and ESPP contributions | 60 | 96 |
Net cash provided by (used in) financing activities | (790) | 3,088 |
Net decrease in cash and cash equivalents | (2,872) | (2,700) |
Cash and cash equivalents, beginning of year | 3,721 | 6,421 |
Cash and cash equivalents, end of year | 849 | 3,721 |
Non-cash investing and financing activity: | ||
Cashless stock option exercise | 45 | 4 |
Cash paid during the period for: | ||
Income taxes, net of refunds | 1,565 | 1,767 |
Interest | $ 463 | $ 330 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | 1. 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 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. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition Revenue from product sales is recognized as promulgated by the Financial Accounting Standards Board (“FASB”) in Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers Revenue from services, typically non-recurring engineering services related to the design or customization of a medical device, is typically recognized over time. The customer funding for costs incurred for non-recurring engineering services is deferred and subsequently recognized as revenue as under-lying products or services are delivered to the customers. Additionally, expenses incurred, up to the customer agreed funding amount, are deferred as an asset and recognized as cost of sales when the under-lying products or services are delivered to the customer. The deferred customer funding and costs result in recognition of deferred costs (asset) and deferred revenue (liability) on our consolidated balance sheets. One of our customer contracts can give rise to variable consideration due to volume rebates. We estimate variable consideration at the most likely amount we will receive from our customer. Our estimates of variable consideration are based on an assessment of our anticipated performance and all information (historical, current, and forecasted) that is reasonably available to us. Returns of our product for credit are minimal; accordingly, we do not establish a reserve for product returns at the time of sale. Estimated Losses on Product Development Services Cost and revenue estimates related to the product development service portions of development and supply contracts are reviewed and updated quarterly. An expected loss on development service contracts is recognized immediately in cost of sales. Losses recorded in fiscal 2022 and 2021 related to these services totaled $ 0 71,000 Owing to the complexity of many of the contracts we have undertaken, the cost estimation process requires significant judgment. It is based upon the knowledge and experience of our project managers, engineers, and finance professionals. Factors that are considered in estimating the cost of work to be completed and ultimate profitability of the fixed price product development portion of development and supply contracts include the nature and complexity of the work to be performed, availability and productivity of labor, the effect of change orders, the availability of materials, performance of subcontractors, and expected costs for specific regulatory approvals. Warranties Certain of our products are sold with a warranty that provides for repairs or replacement of any defective parts for a period, generally one to two years, after the sale. At the time of the sale, we accrue an estimate of the cost of providing the warranty based on prior experience with such factors as return rates and repair costs, which factors are reviewed quarterly. The warranty accrual is based on historical costs of warranty repairs and expected future identifiable warranty expenses and is included in accrued expenses in the accompanying balance sheets. Warranty expenses are included in cost of sales in the accompanying statements of operations. Changes in estimates to previously established warranty accruals result from current period updates to assumptions regarding repair costs and warranty return rates and are included in current period warranty expense. Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of ninety days or less to be cash equivalents. At June 30, 2022 and 2021, cash equivalents consisted of investments in money market funds. Accounts Receivable Trade receivables are stated at their original invoice amounts, less an allowance for doubtful portions of such accounts. Management determines the allowance for doubtful accounts based on facts and circumstances related to specific accounts and the age of accounts. Trade receivables are written off when deemed uncollectible. Recoveries of trade receivables previously reserved are offset against the allowance when received. Deferred Costs Deferred costs reflect costs incurred related to non-recurring engineering services under the terms of the related development and/or supply contracts. These costs get recorded to cost of sales in the period that the revenue is recognized. Inventories Inventories are stated at the lower of cost (first-in, first-out method) or net realizable value. Cost includes materials, labor, and manufacturing overhead related to the purchase and production of inventories. Reductions to estimated market value are recorded and charged to cost of sales, when indicated based on a formula that compares on-hand quantities to both historical usage and estimated demand over the ensuing 12 months from the measurement date. On an ongoing basis, we evaluate inventory for obsolescence and slow-moving items. This evaluation includes analysis of historical sales and usage, existing demand, as well as specific factors known to management. As of June 30, 2022 and 2021, there was approximately $ 177,000 128,000 Investments Investments at June 30, 2022 and 2021, consist of marketable equity securities of publicly held companies. The investments were made to realize a reasonable return, although there is no assurance that positive returns will be realized. Investments are marked to market at each measurement date, with unrealized gains and losses presented separately within other income and expense on the consolidated income statement. Certain investments consist of common stocks of public companies that are thinly traded. These investments were subject to a valuation analysis as of June 30, 2022 and 2021. Long-lived Assets We review the recoverability of long-lived assets, consisting of the land and building that we own, equipment, and improvements, including leasehold improvements, when events or changes in circumstances occur that indicate carrying values may not be recoverable. Our building, equipment and improvements are recorded at historical cost and depreciation is provided using the straight-line method over the following periods: Schedule of building, equipment and improvements Building Thirty years Equipment Three to ten years Improvements Shorter of the remaining life of the underlying building, lease term, or the asset’s estimated useful life Intangibles Intangibles consist legal fees incurred connection with patent applications. Our patent costs are being amortized over a period of four 4 7 Income Taxes We recognize deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of our assets and liabilities along with net operating losses and tax credit carryovers. Deferred tax assets at both June 30, 2022 and 2021 consisted primarily of basis differences related to unrealized gain/loss related to investments, stock-based compensation, fixed assets, accrued expenses, and inventories. Significant management judgment is required in determining the provision for income taxes and the recoverability of deferred tax assets. Such determination is based on historical taxable income, with consideration given to estimates of future taxable income and the periods over which deferred tax assets will be recoverable. We record a valuation allowance against deferred tax assets to reduce the net carrying value to an amount that we believe is more likely than not to be realized. When we establish or reduce the valuation allowance against deferred tax assets, the provision for income taxes will increase or decrease, respectively, in the period such determination is made. Uncertain Tax Positions We record uncertain tax positions in accordance with Accounting Standards Codification (“ASC”) 740 on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position, and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. Shipping and Handling Payments from customers for shipping and handling are included in net sales . Concentration of Credit Risk Financial instruments that potentially subject us to credit risk consist principally of cash, cash equivalents, and trade receivables. We place our cash and cash equivalents with major financial institutions. At June 30, 2022 and 2021, and throughout the fiscal years then ended, we had deposits in excess of federally insured limits. Credit sales are made to medical device distributors, original equipment manufacturers, and resellers throughout the world, and sales to such customers account for a substantial portion of our trade receivables. While such receivables are not collateralized, we evaluate their collectability based on several factors including customers’ payment histories. Compensation Plans We recognize compensation expense for the share-based awards that vest subject to market conditions under ASC 718, Compensation-Stock Compensation Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Our operations are affected by numerous factors including market acceptance of our products, supply chain disruptions, changes in technologies, and new laws, effects from the COVID-19 pandemic, government regulations, and policies. We cannot predict what impact, if any, the occurrence of these or other events might have on our operations. Significant estimates and assumptions made by management include, but are not limited to, revenue recognition, share-based compensation, the allowance for doubtful accounts, accrued warranty expense, investments, inventory valuation, the carrying value of long-lived assets, and the recoverability of deferred income tax assets. Basic and Diluted Per Share Information Basic per share amounts are computed on the basis of the weighted-average number of common shares outstanding during each period presented. Diluted per share amounts assume the issuance of all potential common stock equivalents, consisting of outstanding stock options and performance awards as discussed in Note 11, unless the effect of such exercise is to increase income, or decrease loss, per common share. Fair Value Measurements Fair value is measured based on the prices that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are based on a three-tier hierarchy that prioritizes the inputs used to measure fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions. Cash and cash equivalents: Investments: Although the methods above may produce a fair value calculation that may not be indicative of the net realizable value or reflective of future fair values, we believe our valuation methods are appropriate. Advertising Advertising costs are charged to selling or general and administrative expense as incurred and amounted to $ 1,000 4,000 Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. Recently Issued and Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses (Topic 326). ASU 2016-13 revises the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in more timely recognition of losses on financial instruments, including, but not limited to, available for sale debt securities and accounts receivable. The guidance is effective for the Company’s annual reporting period beginning after December 15, 2022 and interim reporting periods within that annual reporting period. The Company does not expect the adoption of this ASU to have a material impact on the consolidated financial statements. 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 has not had a material impact on our consolidated financial statements. In October 2020, the FASB issued ASU No. 2020-10, Codification Improvements, which updates various codification topics by clarifying disclosure requirements to align with the SEC's regulations. The guidance is effective for the Company’s annual reporting period beginning after December 15, 2020 and interim reporting periods within the annual period beginning after December 15, 2020. The adoption of the amendments has not had a material impact on the consolidated financial statements or related footnote disclosures. |
REVISION OF PREVIOUSLY ISSUED F
REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS FOR CORRECTION OF IMMATERIAL ERRORS | 12 Months Ended |
Jun. 30, 2022 | |
Revision Of Previously Issued Financial Statements For Correction Of Immaterial Errors | |
REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS FOR CORRECTION OF IMMATERIAL ERRORS | 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. We concluded that our historical financial statements are not materially misstated for several reasons, including the fact that the cumulative three-year error had a negative impact to historical net income in the amount of $ 61,000 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 ASU 2016-01 are included in the consolidated financial statements herein. The impact to net income for the year ended June 30, 2021, was an increase of $1.4 million with a corresponding decrease in unrealized gain on marketable equity securities of $1.4 million, previously presented in other comprehensive income (loss). The revision resulted in an increase to basic earnings per share of $0.36 and diluted earnings per share of $0.35 for the year ended June 30, 2021. As of June 30, 2021, the revision reclassified the remaining accumulated other comprehensive loss of $215,000 to retained earnings. |
NET SALES
NET SALES | 12 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
NET SALES | 4. NET SALES The following table presents the disaggregation of net sales by revenue recognition model (in thousands): Schedule of disaggregation of net sales Year ended June 30, 2022 2021 Net Sales: Over-time revenue recognition $ 1,014 $ 324 Point-in-time revenue recognition 41,027 37,705 Total net sales $ 42,041 $ 38,029 The timing of revenue recognition, billings, and cash collections results in billed accounts receivables, unbilled receivables (presented as deferred costs on our consolidated balance sheets) and customer advances and deposits (presented as deferred revenue on our consolidated balance sheets), where applicable. Amounts are generally billed as work progresses in accordance with agreed upon milestones. The over-time revenue recognition model consists of non-recurring engineering (“NRE”) and prototype services and typically relates to NRE services related to the evaluation, design or customization of a medical device and is typically recognized over time utilizing an input measure of progress based on costs incurred compared to the estimated total costs upon completion. During the fiscal years ended June 30, 2022 and 2021, we recorded $ 98,000 50,000 1.0 million The following tables summarize our contract assets and liability balances (in thousands): Schedule of contract assets and liability June 30, 2022 2021 Contract assets at beginning of year $ 193 $ 155 Expenses incurred during the year 1,319 458 Amounts reclassified to cost of sales (774 ) (395 ) Amounts allocated to discounts for standalone selling price (28 ) (25 ) Contract assets at end of year $ 710 $ 193 June 30, 2022 2021 Contract liabilities at beginning of year $ 150 $ 200 Payments received from customers 1,482 — Amounts reclassified to revenue (619 ) (50 ) Contract liabilities at end of year $ 1,013 $ 150 |
COMPOSITION OF CERTAIN FINANCIA
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS | 12 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS | 5. COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS Investments Investments are stated at market value and consist of the following (in thousands): Schedule of investments June 30, June 30, Marketable equity securities – short-term $ 755 $ 1,295 Marketable equity securities – long-term 1,779 1,704 Total Marketable equity securities $ 2,534 $ 2,999 Investments at June 30, 2022 and 2021 had an aggregate cost basis $ 2,796,000 3,204,000 262,000 369,000 107,000 205,000 376,000 171,000 Of the total marketable equity securities at June 30, 2022 and 2021, $ 755,000 847,000 T, Inc. and both either individually or through affiliates own an equity interest in Air T, Inc. Mr. Swenson, our Chairman, also serves as the chief executive officer and chairman of Air T, Inc. Another of our Board members is employed by Air T as its Chief of Staff. The shares have been purchased through 10b5-1 Plans that, in accordance with our internal policies regarding the approval of related-party transactions, were approved by our then three Board members that are not affiliated with Air T, Inc. We invest surplus cash from time to time through our Investment Committee, which is comprised of one management director, Mr. Van Kirk, and two non-management directors, Mr. Cabillot and Mr. Swenson, who chairs the committee. Both Mr. Cabillot and Mr. Swenson are active investors with extensive portfolio management expertise. We leverage the experience of these committee members to make investment decisions for the investment of our surplus operating capital or borrowed funds. Additionally, many of our securities holdings include stocks of public companies that either Messrs. Swenson or Cabillot or both may own from time to time either individually or through the investment funds that they manage, or other companies whose boards they sit on, such as Air T, Inc. Inventory Inventory is stated at the lower of cost (first-in, first-out) or net realizable value and consists of the following (in thousands): Schedule of inventory June 30, 2022 2021 Raw materials /purchased components $ 6,323 $ 3,967 Work in process 3,463 2,218 Sub-assemblies /finished components 2,118 1,738 Finished goods 774 514 Total inventory $ 12,678 $ 8,437 Land and Building Land and building consist of the following (in thousands): Schedule of Land and Building June 30, June 30, Land $ 3,684 $ 3,684 Building 2,815 2,815 Total 6,499 6,499 Less: accumulated depreciation (156 ) (62 ) $ 6,343 $ 6,437 On November 6, 2020, we acquired the Franklin Property for a total purchase price of $ 6.5 1.3 5.2 Equipment and Improvements Equipment and improvements consist of the following (in thousands): Schedule of equipment and improvements June 30, 2022 2021 Office furnishings and fixtures $ 2,224 $ 2,173 Machinery and equipment 6,661 5,895 Automobiles 21 21 Improvements 4,271 3,536 Total 13,177 11,625 Less: accumulated depreciation and amortization (8,344 ) (7,780 ) $ 4,833 $ 3,845 Depreciation expense for the years ended June 30, 2022 and 2021 amounted to $ 616,000 609,000 87,000 35,000 49,000 Intangibles Intangibles consist of the following (in thousands): Schedule of intangibles June 30, June 30, Patent-related costs $ 208 $ 260 Less accumulated amortization (90 ) (74 ) $ 118 $ 186 Amortization expense for the years ended June 30, 2022 and 2021 amounted to $ 16,000 14,000 Patent-related costs consist of legal fees incurred in connection with both patent applications and patent issuances, 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. During fiscal 2022, we impaired $ 84,000 30,000 Accrued Liabilities Accrued liabilities consist of the following (in thousands): Schedule of accrued liabilities June 30, 2022 2021 Payroll and related items $ 509 $ 505 Accrued inventory in transit 177 128 Accrued legal and professional fees 275 124 Accrued bonuses 430 300 Current portion of lease liability 379 344 Warranty 340 221 Accrued customer rebate 517 394 Other 124 182 Total accrued expenses $ 2,751 $ 2,198 |
WARRANTY ACCRUAL
WARRANTY ACCRUAL | 12 Months Ended |
Jun. 30, 2022 | |
Guarantees and Product Warranties [Abstract] | |
WARRANTY ACCRUAL | 6. WARRANTY ACCRUAL Information relating to the accrual for warranty costs for the years ended June 30, 2022 and 2021, is as follows (in thousands): Schedule of accrual warranty costs June 30, 2022 2021 Balance at beginning of year $ 221 $ 213 Accruals during the year 177 339 Change in estimates of prior period accruals 54 (27 ) Warranty amortization/utilization (112 ) (304 ) Balance at end of year $ 340 $ 221 Warranty expense relating to new product sales and changes to estimates was $ 231,000 312,000 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 7. INCOME TAXES Schedule of provision for income taxes Years Ended June 30, 2022 2021 Current: Federal $ 733 $ 1,040 State 451 340 Deferred: Federal (187 ) (186 ) State (146 ) (18 ) Income tax expense $ 851 $ 1,176 The effective income tax rate from income from continuing operations differs from the United States statutory income tax rates for the reasons set forth in the table below (in thousands, except percentages). Schedule of reconciliation federal statutory income tax rates Years Ended June 30, 2022 2021 Amount Percent Amount Percent Income before income taxes $ 4,706 100 % $ 6,997 100 % Computed “expected” income tax expense on income before income taxes $ 976 21 % $ 1,181 17 % State tax, net of federal benefit 202 4 % 279 4 % Tax incentives (205 ) (4 %) (169 ) (3 %) Uncertain tax position (76 ) (2 %) — — Stock based compensation — — (93 ) (1 %) Other (46 ) (1 %) (22 ) — Income tax expense $ 851 18 % $ 1,176 17 % Deferred income taxes reflect the net effects of loss and credit carryforwards and temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities for federal and state income taxes are as follows (in thousands): Schedule of deferred income tax assets and liabilities June 30, 2022 2021 Deferred tax assets: Federal and state NOL carryforward $ 22 $ 20 Research and other credits 65 65 Reserves 163 120 Accruals 322 293 Stock based compensation 651 268 Unrealized losses 35 61 Lease liability 713 788 Inventory 514 371 Total gross deferred tax assets $ 2,485 $ 1,986 Less: valuation allowance (98 ) (158 ) Total deferred tax assets 2,387 1,828 Deferred tax liabilities: Property and equipment, principally due to differing depreciation methods $ (820 ) $ (523 ) Right of use asset (658 ) (740 ) Deferred state tax (77 ) (38 ) Other (35 ) (64 ) Total gross deferred tax liabilities (1,590 ) (1,365 ) Net deferred tax assets $ 797 $ 463 Realization of our deferred tax assets is dependent upon future earnings, if any, the timing and amount of which are uncertain. As of June 30, 2022, our deferred tax asset valuation allowance primarily consists of unrealized capital loss for investments held and the state net operating loss carryforwards for states in which we have filed a final return. For the fiscal year ended June 30, 2022, we recorded a net decrease to our valuation allowance of $ 60,000 As of June 30, 2022, we did not have any net operating losses for federal and state income tax purposes for state jurisdictions in which we currently operate. We have no federal or state research and development and alternative minimum tax credit carry forwards at June 30, 2022. As of June 30, 2022, we have accrued $ 509,000 Information with respect to our accrual for unrecognized tax benefits is as follows (in thousands): Schedule of accrual unrecognized tax benefits June 30, 2022 2021 Unrecognized tax benefits: Beginning balance $ 550 $ 524 Additions based on federal tax positions related to the current year 33 30 Additions based on state tax positions related to the current year 26 20 Additions for tax positions of prior years 9 6 Reductions due to lapses in statutes of limitation (109 ) (30 ) Ending balance $ 509 $ 550 Although it is reasonably possible that certain unrecognized tax benefits may increase or decrease within the next twelve months due to tax examinations, settlement activities, expirations of statute of limitations, or the impact on recognition and measurement considerations related to the results of published tax cases or other similar activities, we do not anticipate any significant changes to unrecognized tax benefits over the next twelve months. We recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense when applicable. As of June 30, 2022, no We are subject to U.S. federal income tax, as well as income tax of California, Colorado, and Massachusetts. We are currently open to audit under the statute of limitations by the Internal Revenue Service for the years ended June 30, 2019, and later. However, because of our prior net operating losses and research credit carryovers, our tax years from June 30, 2007, years are open to audit. |
NOTES PAYABLE AND FINANCING TRA
NOTES PAYABLE AND FINANCING TRANSACTIONS | 12 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE AND FINANCING TRANSACTIONS | 8. 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 approximately $ 5.2 26,037 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. 4,935,000 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 1,000,000 The Term Loan A matures on November 1, 2027 3.84 97,000 5,792,000 The Term Loan B matures on November 1, 2027 3.84 15,000 862,000 The Revolving Loan may be borrowed against from time to time through its maturity date of November 5, 2023 2.75 2,000,000 Any payment on the Loans not made within seven days after the due date is subject to a late payment fee equal to 5 3 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. As of June 30, 2022, we failed one of the financial covenants required by our Amended Credit Agreement, but we obtained a waiver of default from MBT. Although there can be no assurances, we anticipate that we will be in compliance with our debt covenants for at least the next fiscal year, and therefore we do not believe we will require any future waivers of default from MBT. Scheduled principal maturities of our loans, exclusive of unamortized loan origination fees in the amount of $ 55,000 Schedule of Maturities of Term Loan for Future Fiscal Years Term Loan Fiscal Year: 2023 $ 3,293 2024 1,344 2025 1,397 2026 1,451 2027 1,508 Thereafter 4,597 Total principal payments $ 13,590 |
LEASES
LEASES | 12 Months Ended |
Jun. 30, 2022 | |
Leases | |
LEASES | 9. LEASES Our operating lease ROU asset and long-term liability are presented separately on our balance sheet. The current portion of our operating lease liability, exclusive of imputed interest, as of June 30, 2022, in the amount of $ 379,000 Schedule of Maturities of Lease Liabilities Operating Fiscal Year: 2023 $ 504 2024 519 2025 535 2026 551 2027 567 Thereafter 143 Total lease payments 2,819 Less imputed interest: (386 ) Total $ 2,433 As of June 30, 2022, our operating lease has a remaining lease term of five years and three months and an imputed interest rate of 5.3 489,000 475,000 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 10. COMMITMENTS AND CONTINGENCIES Leases We lease our office, production, and warehouse facility in Irvine, California (our “corporate office”) under an agreement that expires in September 2027. Our corporate office lease requires us to pay insurance, taxes, and other expenses related to the leased space. Rent expense in fiscal 2022 and 2021 was $ 559,000 558,000 Compensation Arrangements Retirement Savings 401(k) Plan The Pro-Dex, Inc. Retirement Savings 401(k) Plan (the “401(k) Plan”) is a defined contribution plan we administer that covers substantially all our employees and is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended. Employees are eligible to participate in the 401(k) Plan when they have attained 19 years of age and then can enter into the 401(k) Plan on the first day of each calendar quarter. Participants are eligible to receive non-discretionary matching contributions by the Company equal to 25 5 72,000 81,000 25,000 17,000 Legal Matters On August 24, 2021, one of our customers, through its counsel, sent notice that it is seeking indemnification from Pro-Dex regarding a pending complaint filed by a third-party claiming patent infringement on one of the products which we manufacture for this customer. Our position is that there is no infringement and/or that the patent at issue is invalid. We have not accrued any amounts related to this claim. On August 26, 2022, the third-party voluntarily dismissed all of its claims with prejudice. 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. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | 11. SHARE-BASED COMPENSATION Stock Option Plans Through 2014, we had two equity compensation plans, the Second Amended and Restated 2004 Stock Option Plan (the “Employee Stock Option Plan”) and the Amended and Restated 2004 Directors’ Stock Option Plan (the “Directors’ Stock Option Plan”) (collectively, the “Former Stock Option Plans”). The Employee Stock Option Plan and Director’s Stock Option Plan were terminated in June 2014 and December 2014, respectively. In September 2016, our Board approved the establishment of the 2016 Equity Incentive Plan, which was approved by our shareholders at our 2016 Annual Meeting. The 2016 Equity Incentive Plan provides for the award of up to 1,500,000 Former Stock Option Plans No June 30, 2022, there was no outstanding stock options are fully vested. The intrinsic value of stock options outstanding and exercisable at June 30, 2022, was approximately $ 92,000 0.29 The following is a summary of stock option activity under the Former Stock Option Plans for the fiscal years ended June 30, 2022 and 2021: Schedule of summary of stock option activity 2022 2021 Number of Weighted-Average Number of Weighted-Average Outstanding at July 1, 31,500 $ 1.81 54,000 $ 1.86 Options granted — — — — Options exercised (25,000 ) 1.80 (22,500 ) 1.94 Options forfeited — — — — Outstanding at end of period 6,500 $ 1.82 31,500 $ 1.81 Stock Options Exercisable at June 30, 6,500 $ 1.82 31,500 $ 1.81 Performance Awards In December 2017, the Compensation Committee of our Board of Directors granted 200,000 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. 4.46 48,000 16.90 17,500 20.34 194,000 84,000 322,000 1.97 On July 1, 2020, it was determined by the Compensation Committee that the second of five tranches of the performance awards had been achieved and participants were awarded 40,000 259,000 25,629 The following is a summary of performance awards activity for the fiscal years ended June 30, 2022 and 2021: Schedule of summary of stock option activity 2022 2021 Number of Weighted-Average Number of Weighted-Average Outstanding at July 1, 105,000 $ 8.73 160,000 $ 8.19 Granted 17,500 20.34 — — Vested — — (40,000 ) 8.19 Forfeited (5,000 ) 4.46 (15,000 ) 4.46 Outstanding at end of period 117,500 $ 10.64 105,000 $ 8.73 Non-Qualified Stock Options In December 2020, the Compensation Committee of our Board of Directors granted 310,000 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. 1,070,000 624,000 16.72 3.1 In February 2021, the Compensation Committee of our Board of Directors granted 62,000 completion of service periods that ranged from 4 months to 1.3 years at inception and the achievement of our common stock trading at certain pre-determined prices. 182,000 3.16 5,000 The following is a summary of non-qualified stock option activity under the 2016 Equity Incentive Plan for the fiscal year ended June 30, 2022 and 2021: Schedule of summary of stock option activity 2022 2021 Number of Weighted-Average Number of Weighted-Average Outstanding at July 1, 346,500 $ 41.83 — $ — Options granted 5,000 44.70 372,000 41.83 Options exercised — — — — Options forfeited (5,000 ) 44.70 (25,500 ) 41.83 Outstanding at end of period 346,500 $ 41.83 346,500 $ 41.83 Stock Options Exercisable at June 30, 57,750 $ 27.50 — — 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 at which participant’s 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. 704,715 During the fiscal years ended June 30, 2022 and 2021, shares totaling 2,576 2,677 23.33 21.47 27,039 11,000 10,000 |
MAJOR CUSTOMERS & SUPPLIERS
MAJOR CUSTOMERS & SUPPLIERS | 12 Months Ended |
Jun. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
MAJOR CUSTOMERS & SUPPLIERS | 12. MAJOR CUSTOMERS & SUPPLIERS Customers accounted for more than 10% of our total sales either of 2022 or 2021, is as follows (in thousands, except percentages): Schedule of sales by major customers Years Ended June 30, 2022 2022 Amount Percent Amount Percent Net sales $ 42,041 100 % $ 38,029 100 % Customer concentration: Customer 1 $ 27,686 66 % $ 22,163 58 % Customer 2 5,788 14 % 10,122 27 % Total $ 33,474 80 % $ 32,285 85 % Information with respect to accounts receivable from those customers who comprised more than 10% of our gross accounts receivable at either June 30, 2022 or June 30, 2021 is as follows (in thousands, except percentages): Schedule of accounts receivable, inventory purchases and accounts payable of major customers and suppliers June 30, 2022 June 30, 2021 Total gross accounts receivable $ 15,384 100 % $ 10,935 100 % Customer concentration: Customer 1 $ 11,551 75 % $ 6,666 61 % Customer 2 2,152 14 % 3,710 34 % Total $ 13,703 89 % $ 10,376 95 % During fiscal 2022 and 2021, we had between two and four suppliers that accounted for more than 10% of total inventory purchases, as follows (in thousands, except percentages): June 30, 2022 June 30, 2021 Total inventory purchases $ 19,640 100 % $ 13,844 100 % Supplier concentration: Supplier 1 $ 2,735 14 % $ 2,238 16 % Supplier 2 2,335 12 % 2,159 16 % Supplier 3 2,199 11 % 1,318 9 % Supplier 4 2,587 13 % 856 6 % Total $ 9,856 50 % $ 6,571 47 % Information with respect to accounts payable due to those suppliers who comprised more than 10% of our accounts payable at either June 30, 2022 or June 30, 2021 is as follows (in thousands, except percentages): June 30, 2022 June 30, 2021 Total accounts payable $ 3,761 100 % $ 2,288 100 % Supplier concentration: Supplier 1 $ 721 19 % $ 225 10 % Supplier 4 430 11 % 153 7 % Supplier 2 372 10 % 206 9 % Total $ 1,523 40 % $ 584 26 % |
NET INCOME PER SHARE
NET INCOME PER SHARE | 12 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | 13. NET INCOME PER SHARE Schedule of weighted average shares outstanding calculation of basic and diluted per share Years Ended June 30, 2022 2021 Basic: Net income $ 3,855 $ 5,821 Weighted-average shares outstanding 3,636 3,797 Basic earnings per share $ 1.06 $ 1.53 Diluted: Net income $ 3,855 $ 5,821 Weighted-average shares outstanding 3,636 3,797 Effect of dilutive securities – stock options & performance awards 127 139 Weighted-average shares used in calculation of diluted earnings per share 3,763 3,936 Diluted earnings per share $ 1.02 $ 1.48 |
COMMON STOCK _ Share Repurchase
COMMON STOCK – Share Repurchase Program | 12 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
COMMON STOCK – Share Repurchase Program | 14. COMMON STOCK – Share Repurchase Program In December 2019, our Board approved a new share repurchase program authorizing us to repurchase up to one million shares of our common stock, as the prior repurchase plan authorized by our 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 fiscal year ended June 30, 2022, we repurchased 75,250 , of $ 1.6 216,171 5.5 1,110,746 15.7 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 15. SUBSEQUENT EVENTS We have evaluated subsequent events through the date of this filing. There were no subsequent events that require disclosure. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Revenue Recognition | Revenue Recognition Revenue from product sales is recognized as promulgated by the Financial Accounting Standards Board (“FASB”) in Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers Revenue from services, typically non-recurring engineering services related to the design or customization of a medical device, is typically recognized over time. The customer funding for costs incurred for non-recurring engineering services is deferred and subsequently recognized as revenue as under-lying products or services are delivered to the customers. Additionally, expenses incurred, up to the customer agreed funding amount, are deferred as an asset and recognized as cost of sales when the under-lying products or services are delivered to the customer. The deferred customer funding and costs result in recognition of deferred costs (asset) and deferred revenue (liability) on our consolidated balance sheets. One of our customer contracts can give rise to variable consideration due to volume rebates. We estimate variable consideration at the most likely amount we will receive from our customer. Our estimates of variable consideration are based on an assessment of our anticipated performance and all information (historical, current, and forecasted) that is reasonably available to us. Returns of our product for credit are minimal; accordingly, we do not establish a reserve for product returns at the time of sale. |
Estimated Losses on Product Development Services | Estimated Losses on Product Development Services Cost and revenue estimates related to the product development service portions of development and supply contracts are reviewed and updated quarterly. An expected loss on development service contracts is recognized immediately in cost of sales. Losses recorded in fiscal 2022 and 2021 related to these services totaled $ 0 71,000 Owing to the complexity of many of the contracts we have undertaken, the cost estimation process requires significant judgment. It is based upon the knowledge and experience of our project managers, engineers, and finance professionals. Factors that are considered in estimating the cost of work to be completed and ultimate profitability of the fixed price product development portion of development and supply contracts include the nature and complexity of the work to be performed, availability and productivity of labor, the effect of change orders, the availability of materials, performance of subcontractors, and expected costs for specific regulatory approvals. |
Warranties | Warranties Certain of our products are sold with a warranty that provides for repairs or replacement of any defective parts for a period, generally one to two years, after the sale. At the time of the sale, we accrue an estimate of the cost of providing the warranty based on prior experience with such factors as return rates and repair costs, which factors are reviewed quarterly. The warranty accrual is based on historical costs of warranty repairs and expected future identifiable warranty expenses and is included in accrued expenses in the accompanying balance sheets. Warranty expenses are included in cost of sales in the accompanying statements of operations. Changes in estimates to previously established warranty accruals result from current period updates to assumptions regarding repair costs and warranty return rates and are included in current period warranty expense. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid investments with an original maturity of ninety days or less to be cash equivalents. At June 30, 2022 and 2021, cash equivalents consisted of investments in money market funds. |
Accounts Receivable | Accounts Receivable Trade receivables are stated at their original invoice amounts, less an allowance for doubtful portions of such accounts. Management determines the allowance for doubtful accounts based on facts and circumstances related to specific accounts and the age of accounts. Trade receivables are written off when deemed uncollectible. Recoveries of trade receivables previously reserved are offset against the allowance when received. |
Deferred Costs | Deferred Costs Deferred costs reflect costs incurred related to non-recurring engineering services under the terms of the related development and/or supply contracts. These costs get recorded to cost of sales in the period that the revenue is recognized. |
Inventories | Inventories Inventories are stated at the lower of cost (first-in, first-out method) or net realizable value. Cost includes materials, labor, and manufacturing overhead related to the purchase and production of inventories. Reductions to estimated market value are recorded and charged to cost of sales, when indicated based on a formula that compares on-hand quantities to both historical usage and estimated demand over the ensuing 12 months from the measurement date. On an ongoing basis, we evaluate inventory for obsolescence and slow-moving items. This evaluation includes analysis of historical sales and usage, existing demand, as well as specific factors known to management. As of June 30, 2022 and 2021, there was approximately $ 177,000 128,000 |
Investments | Investments Investments at June 30, 2022 and 2021, consist of marketable equity securities of publicly held companies. The investments were made to realize a reasonable return, although there is no assurance that positive returns will be realized. Investments are marked to market at each measurement date, with unrealized gains and losses presented separately within other income and expense on the consolidated income statement. Certain investments consist of common stocks of public companies that are thinly traded. These investments were subject to a valuation analysis as of June 30, 2022 and 2021. |
Long-lived Assets | Long-lived Assets We review the recoverability of long-lived assets, consisting of the land and building that we own, equipment, and improvements, including leasehold improvements, when events or changes in circumstances occur that indicate carrying values may not be recoverable. Our building, equipment and improvements are recorded at historical cost and depreciation is provided using the straight-line method over the following periods: Schedule of building, equipment and improvements Building Thirty years Equipment Three to ten years Improvements Shorter of the remaining life of the underlying building, lease term, or the asset’s estimated useful life |
Intangibles | Intangibles Intangibles consist legal fees incurred connection with patent applications. Our patent costs are being amortized over a period of four 4 7 |
Income Taxes | Income Taxes We recognize deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of our assets and liabilities along with net operating losses and tax credit carryovers. Deferred tax assets at both June 30, 2022 and 2021 consisted primarily of basis differences related to unrealized gain/loss related to investments, stock-based compensation, fixed assets, accrued expenses, and inventories. Significant management judgment is required in determining the provision for income taxes and the recoverability of deferred tax assets. Such determination is based on historical taxable income, with consideration given to estimates of future taxable income and the periods over which deferred tax assets will be recoverable. We record a valuation allowance against deferred tax assets to reduce the net carrying value to an amount that we believe is more likely than not to be realized. When we establish or reduce the valuation allowance against deferred tax assets, the provision for income taxes will increase or decrease, respectively, in the period such determination is made. |
Uncertain Tax Positions | Uncertain Tax Positions We record uncertain tax positions in accordance with Accounting Standards Codification (“ASC”) 740 on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position, and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. |
Shipping and Handling | Shipping and Handling Payments from customers for shipping and handling are included in net sales . |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject us to credit risk consist principally of cash, cash equivalents, and trade receivables. We place our cash and cash equivalents with major financial institutions. At June 30, 2022 and 2021, and throughout the fiscal years then ended, we had deposits in excess of federally insured limits. Credit sales are made to medical device distributors, original equipment manufacturers, and resellers throughout the world, and sales to such customers account for a substantial portion of our trade receivables. While such receivables are not collateralized, we evaluate their collectability based on several factors including customers’ payment histories. |
Compensation Plans | Compensation Plans We recognize compensation expense for the share-based awards that vest subject to market conditions under ASC 718, Compensation-Stock Compensation |
Use of Estimates | Use of Estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Our operations are affected by numerous factors including market acceptance of our products, supply chain disruptions, changes in technologies, and new laws, effects from the COVID-19 pandemic, government regulations, and policies. We cannot predict what impact, if any, the occurrence of these or other events might have on our operations. Significant estimates and assumptions made by management include, but are not limited to, revenue recognition, share-based compensation, the allowance for doubtful accounts, accrued warranty expense, investments, inventory valuation, the carrying value of long-lived assets, and the recoverability of deferred income tax assets. |
Basic and Diluted Per Share Information | Basic and Diluted Per Share Information Basic per share amounts are computed on the basis of the weighted-average number of common shares outstanding during each period presented. Diluted per share amounts assume the issuance of all potential common stock equivalents, consisting of outstanding stock options and performance awards as discussed in Note 11, unless the effect of such exercise is to increase income, or decrease loss, per common share. |
Fair Value Measurements | Fair Value Measurements Fair value is measured based on the prices that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are based on a three-tier hierarchy that prioritizes the inputs used to measure fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions. Cash and cash equivalents: Investments: Although the methods above may produce a fair value calculation that may not be indicative of the net realizable value or reflective of future fair values, we believe our valuation methods are appropriate. |
Advertising | Advertising Advertising costs are charged to selling or general and administrative expense as incurred and amounted to $ 1,000 4,000 |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation. |
Recently Issued and Adopted Accounting Standards | Recently Issued and Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses (Topic 326). ASU 2016-13 revises the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in more timely recognition of losses on financial instruments, including, but not limited to, available for sale debt securities and accounts receivable. The guidance is effective for the Company’s annual reporting period beginning after December 15, 2022 and interim reporting periods within that annual reporting period. The Company does not expect the adoption of this ASU to have a material impact on the consolidated financial statements. 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 has not had a material impact on our consolidated financial statements. In October 2020, the FASB issued ASU No. 2020-10, Codification Improvements, which updates various codification topics by clarifying disclosure requirements to align with the SEC's regulations. The guidance is effective for the Company’s annual reporting period beginning after December 15, 2020 and interim reporting periods within the annual period beginning after December 15, 2020. The adoption of the amendments has not had a material impact on the consolidated financial statements or related footnote disclosures. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of building, equipment and improvements | Schedule of building, equipment and improvements Building Thirty years Equipment Three to ten years Improvements Shorter of the remaining life of the underlying building, lease term, or the asset’s estimated useful life |
NET SALES (Tables)
NET SALES (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Schedule of disaggregation of net sales | Schedule of disaggregation of net sales Year ended June 30, 2022 2021 Net Sales: Over-time revenue recognition $ 1,014 $ 324 Point-in-time revenue recognition 41,027 37,705 Total net sales $ 42,041 $ 38,029 |
Schedule of contract assets and liability | Schedule of contract assets and liability June 30, 2022 2021 Contract assets at beginning of year $ 193 $ 155 Expenses incurred during the year 1,319 458 Amounts reclassified to cost of sales (774 ) (395 ) Amounts allocated to discounts for standalone selling price (28 ) (25 ) Contract assets at end of year $ 710 $ 193 June 30, 2022 2021 Contract liabilities at beginning of year $ 150 $ 200 Payments received from customers 1,482 — Amounts reclassified to revenue (619 ) (50 ) Contract liabilities at end of year $ 1,013 $ 150 |
COMPOSITION OF CERTAIN FINANC_2
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of investments | Schedule of investments June 30, June 30, Marketable equity securities – short-term $ 755 $ 1,295 Marketable equity securities – long-term 1,779 1,704 Total Marketable equity securities $ 2,534 $ 2,999 |
Schedule of inventory | Schedule of inventory June 30, 2022 2021 Raw materials /purchased components $ 6,323 $ 3,967 Work in process 3,463 2,218 Sub-assemblies /finished components 2,118 1,738 Finished goods 774 514 Total inventory $ 12,678 $ 8,437 |
Schedule of Land and Building | Schedule of Land and Building June 30, June 30, Land $ 3,684 $ 3,684 Building 2,815 2,815 Total 6,499 6,499 Less: accumulated depreciation (156 ) (62 ) $ 6,343 $ 6,437 |
Schedule of equipment and improvements | Schedule of equipment and improvements June 30, 2022 2021 Office furnishings and fixtures $ 2,224 $ 2,173 Machinery and equipment 6,661 5,895 Automobiles 21 21 Improvements 4,271 3,536 Total 13,177 11,625 Less: accumulated depreciation and amortization (8,344 ) (7,780 ) $ 4,833 $ 3,845 |
Schedule of intangibles | Schedule of intangibles June 30, June 30, Patent-related costs $ 208 $ 260 Less accumulated amortization (90 ) (74 ) $ 118 $ 186 |
Schedule of accrued liabilities | Schedule of accrued liabilities June 30, 2022 2021 Payroll and related items $ 509 $ 505 Accrued inventory in transit 177 128 Accrued legal and professional fees 275 124 Accrued bonuses 430 300 Current portion of lease liability 379 344 Warranty 340 221 Accrued customer rebate 517 394 Other 124 182 Total accrued expenses $ 2,751 $ 2,198 |
WARRANTY ACCRUAL (Tables)
WARRANTY ACCRUAL (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Guarantees and Product Warranties [Abstract] | |
Schedule of accrual warranty costs | Schedule of accrual warranty costs June 30, 2022 2021 Balance at beginning of year $ 221 $ 213 Accruals during the year 177 339 Change in estimates of prior period accruals 54 (27 ) Warranty amortization/utilization (112 ) (304 ) Balance at end of year $ 340 $ 221 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of provision for income taxes | Schedule of provision for income taxes Years Ended June 30, 2022 2021 Current: Federal $ 733 $ 1,040 State 451 340 Deferred: Federal (187 ) (186 ) State (146 ) (18 ) Income tax expense $ 851 $ 1,176 |
Schedule of reconciliation federal statutory income tax rates | Schedule of reconciliation federal statutory income tax rates Years Ended June 30, 2022 2021 Amount Percent Amount Percent Income before income taxes $ 4,706 100 % $ 6,997 100 % Computed “expected” income tax expense on income before income taxes $ 976 21 % $ 1,181 17 % State tax, net of federal benefit 202 4 % 279 4 % Tax incentives (205 ) (4 %) (169 ) (3 %) Uncertain tax position (76 ) (2 %) — — Stock based compensation — — (93 ) (1 %) Other (46 ) (1 %) (22 ) — Income tax expense $ 851 18 % $ 1,176 17 % |
Schedule of deferred income tax assets and liabilities | Schedule of deferred income tax assets and liabilities June 30, 2022 2021 Deferred tax assets: Federal and state NOL carryforward $ 22 $ 20 Research and other credits 65 65 Reserves 163 120 Accruals 322 293 Stock based compensation 651 268 Unrealized losses 35 61 Lease liability 713 788 Inventory 514 371 Total gross deferred tax assets $ 2,485 $ 1,986 Less: valuation allowance (98 ) (158 ) Total deferred tax assets 2,387 1,828 Deferred tax liabilities: Property and equipment, principally due to differing depreciation methods $ (820 ) $ (523 ) Right of use asset (658 ) (740 ) Deferred state tax (77 ) (38 ) Other (35 ) (64 ) Total gross deferred tax liabilities (1,590 ) (1,365 ) Net deferred tax assets $ 797 $ 463 |
Schedule of accrual unrecognized tax benefits | Schedule of accrual unrecognized tax benefits June 30, 2022 2021 Unrecognized tax benefits: Beginning balance $ 550 $ 524 Additions based on federal tax positions related to the current year 33 30 Additions based on state tax positions related to the current year 26 20 Additions for tax positions of prior years 9 6 Reductions due to lapses in statutes of limitation (109 ) (30 ) Ending balance $ 509 $ 550 |
NOTES PAYABLE AND FINANCING T_2
NOTES PAYABLE AND FINANCING TRANSACTIONS (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Term Loan for Future Fiscal Years | Schedule of Maturities of Term Loan for Future Fiscal Years Term Loan Fiscal Year: 2023 $ 3,293 2024 1,344 2025 1,397 2026 1,451 2027 1,508 Thereafter 4,597 Total principal payments $ 13,590 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Leases | |
Schedule of Maturities of Lease Liabilities | Schedule of Maturities of Lease Liabilities Operating Fiscal Year: 2023 $ 504 2024 519 2025 535 2026 551 2027 567 Thereafter 143 Total lease payments 2,819 Less imputed interest: (386 ) Total $ 2,433 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Equity Option [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Schedule of summary of stock option activity | Schedule of summary of stock option activity 2022 2021 Number of Weighted-Average Number of Weighted-Average Outstanding at July 1, 31,500 $ 1.81 54,000 $ 1.86 Options granted — — — — Options exercised (25,000 ) 1.80 (22,500 ) 1.94 Options forfeited — — — — Outstanding at end of period 6,500 $ 1.82 31,500 $ 1.81 Stock Options Exercisable at June 30, 6,500 $ 1.82 31,500 $ 1.81 |
Performance Shares [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Schedule of summary of stock option activity | Schedule of summary of stock option activity 2022 2021 Number of Weighted-Average Number of Weighted-Average Outstanding at July 1, 105,000 $ 8.73 160,000 $ 8.19 Granted 17,500 20.34 — — Vested — — (40,000 ) 8.19 Forfeited (5,000 ) 4.46 (15,000 ) 4.46 Outstanding at end of period 117,500 $ 10.64 105,000 $ 8.73 |
Non Qualified Stock Options [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Schedule of summary of stock option activity | Schedule of summary of stock option activity 2022 2021 Number of Weighted-Average Number of Weighted-Average Outstanding at July 1, 346,500 $ 41.83 — $ — Options granted 5,000 44.70 372,000 41.83 Options exercised — — — — Options forfeited (5,000 ) 44.70 (25,500 ) 41.83 Outstanding at end of period 346,500 $ 41.83 346,500 $ 41.83 Stock Options Exercisable at June 30, 57,750 $ 27.50 — — |
MAJOR CUSTOMERS & SUPPLIERS (Ta
MAJOR CUSTOMERS & SUPPLIERS (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
Schedule of sales by major customers | Schedule of sales by major customers Years Ended June 30, 2022 2022 Amount Percent Amount Percent Net sales $ 42,041 100 % $ 38,029 100 % Customer concentration: Customer 1 $ 27,686 66 % $ 22,163 58 % Customer 2 5,788 14 % 10,122 27 % Total $ 33,474 80 % $ 32,285 85 % |
Schedule of accounts receivable, inventory purchases and accounts payable of major customers and suppliers | Schedule of accounts receivable, inventory purchases and accounts payable of major customers and suppliers June 30, 2022 June 30, 2021 Total gross accounts receivable $ 15,384 100 % $ 10,935 100 % Customer concentration: Customer 1 $ 11,551 75 % $ 6,666 61 % Customer 2 2,152 14 % 3,710 34 % Total $ 13,703 89 % $ 10,376 95 % During fiscal 2022 and 2021, we had between two and four suppliers that accounted for more than 10% of total inventory purchases, as follows (in thousands, except percentages): June 30, 2022 June 30, 2021 Total inventory purchases $ 19,640 100 % $ 13,844 100 % Supplier concentration: Supplier 1 $ 2,735 14 % $ 2,238 16 % Supplier 2 2,335 12 % 2,159 16 % Supplier 3 2,199 11 % 1,318 9 % Supplier 4 2,587 13 % 856 6 % Total $ 9,856 50 % $ 6,571 47 % Information with respect to accounts payable due to those suppliers who comprised more than 10% of our accounts payable at either June 30, 2022 or June 30, 2021 is as follows (in thousands, except percentages): June 30, 2022 June 30, 2021 Total accounts payable $ 3,761 100 % $ 2,288 100 % Supplier concentration: Supplier 1 $ 721 19 % $ 225 10 % Supplier 4 430 11 % 153 7 % Supplier 2 372 10 % 206 9 % Total $ 1,523 40 % $ 584 26 % |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of weighted average shares outstanding calculation of basic and diluted per share | Schedule of weighted average shares outstanding calculation of basic and diluted per share Years Ended June 30, 2022 2021 Basic: Net income $ 3,855 $ 5,821 Weighted-average shares outstanding 3,636 3,797 Basic earnings per share $ 1.06 $ 1.53 Diluted: Net income $ 3,855 $ 5,821 Weighted-average shares outstanding 3,636 3,797 Effect of dilutive securities – stock options & performance awards 127 139 Weighted-average shares used in calculation of diluted earnings per share 3,763 3,936 Diluted earnings per share $ 1.02 $ 1.48 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Jun. 30, 2022 | |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Description of estimated useful lives | Thirty years |
Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Description of estimated useful lives | Three to ten years |
Leaseholds and Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Description of estimated useful lives | Shorter of the remaining life of the underlying building, lease term, or the asset’s estimated useful life |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Losses | $ 0 | $ 71,000 |
Inventory in-transit | 177,000 | 128,000 |
Advertising expense | $ 1,000 | $ 4,000 |
Patents [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Amortization period of assets | 4 years | |
Patents [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Amortization period of assets | 7 years |
REVISION OF PREVIOUSLY ISSUED_2
REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS FOR CORRECTION OF IMMATERIAL ERRORS (Details Narrative) | 12 Months Ended |
Jun. 30, 2022 USD ($) | |
Revision Of Previously Issued Financial Statements For Correction Of Immaterial Errors | |
Net income loss | $ 61,000 |
Immaterial Error Correction | 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 ASU 2016-01 are included in the consolidated financial statements herein. The impact to net income for the year ended June 30, 2021, was an increase of $1.4 million with a corresponding decrease in unrealized gain on marketable equity securities of $1.4 million, previously presented in other comprehensive income (loss). The revision resulted in an increase to basic earnings per share of $0.36 and diluted earnings per share of $0.35 for the year ended June 30, 2021. As of June 30, 2021, the revision reclassified the remaining accumulated other comprehensive loss of $215,000 to retained earnings. |
NET SALES (Net sales) (Details)
NET SALES (Net sales) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Net Sales: | ||
Over-time revenue recognition | $ 1,014 | $ 324 |
Point-in-time revenue recognition | 41,027 | 37,705 |
Total net sales | $ 42,041 | $ 38,029 |
NET SALES (Contract assets and
NET SALES (Contract assets and liability) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Equity [Abstract] | ||
Contract assets at beginning of year | $ 193 | $ 155 |
Expenses incurred during the year | 1,319 | 458 |
Amounts reclassified to cost of sales | (774) | (395) |
Amounts allocated to discounts for standalone selling price | (28) | (25) |
Contract assets at end of year | 710 | 193 |
Contract liabilities at beginning of year | 150 | 200 |
Payments received from customers | 1,482 | |
Amounts reclassified to revenue | (619) | (50) |
Contract liabilities at end of year | $ 1,013 | $ 150 |
NET SALES (Details Narrative)
NET SALES (Details Narrative) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Equity [Abstract] | ||
Deferred revenue | $ 98,000 | $ 50,000 |
Deferred Revenue | $ 1,000,000 |
COMPOSITION OF CERTAIN FINANC_3
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Schedule of investments) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Marketable equity securities – short-term | $ 755 | $ 1,295 |
Marketable equity securities – long-term | 1,779 | 1,704 |
Total Marketable equity securities | $ 2,534 | $ 2,999 |
COMPOSITION OF CERTAIN FINANC_4
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Inventory) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials /purchased components | $ 6,323 | $ 3,967 |
Work in process | 3,463 | 2,218 |
Sub-assemblies /finished components | 2,118 | 1,738 |
Finished goods | 774 | 514 |
Total inventory | $ 12,678 | $ 8,437 |
COMPOSITION OF CERTAIN FINANC_5
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Schedule of Land and Building) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Land and building, gross | $ 6,499 | $ 6,499 |
Accumulated depreciation | (156) | (62) |
Land and building, net | 6,343 | 6,437 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Land and building, gross | 3,684 | 3,684 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Land and building, gross | $ 2,815 | $ 2,815 |
COMPOSITION OF CERTAIN FINANC_6
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Schedule of Equipment and improvements ) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Equipment and improvements, gross | $ 13,177 | $ 11,625 |
Less: accumulated depreciation and amortization | (8,344) | (7,780) |
Equipment and improvements, net | 4,833 | 3,845 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Equipment and improvements, gross | 2,224 | 2,173 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Equipment and improvements, gross | 6,661 | 5,895 |
Automobiles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Equipment and improvements, gross | 21 | 21 |
Leaseholds and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Equipment and improvements, gross | $ 4,271 | $ 3,536 |
COMPOSITION OF CERTAIN FINANC_7
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Intangible Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Less accumulated amortization | $ (90) | $ (74) |
Intangible assets,net | 118 | 186 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangibles | $ 208 | $ 260 |
COMPOSITION OF CERTAIN FINANC_8
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Accrued liabilities) (Details) - USD ($) | Jun. 30, 2022 | Jun. 30, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Payroll and related items | $ 509,000 | $ 505,000 |
Accrued inventory in transit | 177,000 | 128,000 |
Accrued legal and professional fees | 275,000 | 124,000 |
Accrued bonuses | 430,000 | 300,000 |
Current portion of lease liability | 379,000 | 344,000 |
Warranty | 340,000 | 221,000 |
Accrued customer rebate | 517,000 | 394,000 |
Other | 124,000 | 182,000 |
Total accrued expenses | $ 2,751,000 | $ 2,198,000 |
COMPOSITION OF CERTAIN FINANC_9
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Details Narrative) - USD ($) | 12 Months Ended | ||
Nov. 06, 2020 | Jun. 30, 2022 | Jun. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Aggregate cost | $ 2,796,000 | $ 3,204,000 | |
Net unrealized gain (loss) on investments | 262,000 | 205,000 | |
Gross unrealized losses | 369,000 | 376,000 | |
Gross unrealized gains | 107,000 | 171,000 | |
Investment in common stock of company affiliated with company board members | 755,000 | 847,000 | |
Payment to acquired property plant equipment | 1,638,000 | 1,769,000 | |
Payment of property plant equipment | 6,499,000 | ||
Depreciation expenses | 616,000 | 609,000 | |
Retired assets | 87,000 | 49,000 | |
Loss on disposal of equipment | 35,000 | ||
Amortization expense | 16,000 | $ 14,000 | |
Legal fees | 84,000 | ||
Future amortization expense | $ 30,000 | ||
Franklin [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Payment to acquired property plant equipment | $ 6,500,000 | ||
Payment of property plant equipment | 1,300,000 | ||
Bank financed | $ 5,200,000 |
WARRANTY ACCRUAL (Schedule of a
WARRANTY ACCRUAL (Schedule of accrual warranty costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Guarantees and Product Warranties [Abstract] | ||
Balance at beginning of year | $ 221 | $ 213 |
Accruals during the year | 177 | 339 |
Change in estimates of prior period accruals | 54 | (27) |
Warranty amortization | (112) | (304) |
Balance at end of year | $ 340 | $ 221 |
WARRANTY ACCRUAL (Details Narra
WARRANTY ACCRUAL (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Guarantees and Product Warranties [Abstract] | ||
Warranty expenses | $ 231,000 | $ 312,000 |
INCOME TAXES (Provision for inc
INCOME TAXES (Provision for income tax expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Current: | ||
Federal | $ 733 | $ 1,040 |
State | 451 | 340 |
Deferred: | ||
Federal | (187) | (186) |
State | (146) | (18) |
Income tax expense | $ 851 | $ 1,176 |
INCOME TAXES (Effective income
INCOME TAXES (Effective income tax rate on loss from continuing operations) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||
Income before income taxes | $ 4,706 | $ 6,997 |
Income before income taxes | 100% | 100% |
Computed "expected" income tax expense on income before income taxes | $ 976 | $ 1,181 |
Computed "expected" income tax expense on income before income taxes | 21% | 17% |
State tax, net of federal benefit | $ 202 | $ 279 |
State tax, net of federal benefit | 4% | 4% |
Tax incentives | $ (205) | $ (169) |
Tax incentives | (4.00%) | (3.00%) |
Uncertain tax position | $ (76) | |
Uncertain tax position | (2.00%) | |
Share based compensation | $ (93) | |
Share based compensation | (1.00%) | |
Other | $ (46) | $ (22) |
Other | (1.00%) | |
Income tax expense | $ 851 | $ 1,176 |
Income tax expense | 18% | 17% |
INCOME TAXES (Deferred tax asse
INCOME TAXES (Deferred tax assets and liabilities for federal and state income taxes) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Deferred tax assets: | ||
Federal and state NOL carryforward | $ 22 | $ 20 |
Research and other credits | 65 | 65 |
Reserves | 163 | 120 |
Accruals | 322 | 293 |
Stock based compensation | 651 | 268 |
Unrealized losses | 35 | 61 |
Lease liability | 713 | 788 |
Inventory | 514 | 371 |
Total gross deferred tax assets | 2,485 | 1,986 |
Less: valuation allowance | (98) | (158) |
Total deferred tax assets | 2,387 | 1,828 |
Deferred tax liabilities: | ||
Property and equipment, principally due to differing depreciation methods | (820) | (523) |
Right of use asset | (658) | (740) |
Deferred state tax | (77) | (38) |
Other | (35) | (64) |
Total gross deferred tax liabilities | (1,590) | (1,365) |
Net deferred tax assets | $ 797 | $ 463 |
INCOME TAXES (Accrual for unrec
INCOME TAXES (Accrual for unrecognized tax benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||
Beginning balance | $ 550 | $ 524 |
Additions based on federal tax positions related to the current year | 33 | 30 |
Additions based on state tax positions related to the current year | 26 | 20 |
Additions for tax positions of prior years | 9 | 6 |
Reductions due to lapses in statutes of limitation | (109) | (30) |
Ending balance | $ 509 | $ 550 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 12 Months Ended |
Jun. 30, 2022 USD ($) | |
Income Tax Disclosure [Abstract] | |
Increase (Decrease) in deferred tax asset valuation allowance | $ 60,000 |
Unrecognized tax benefits | 509,000 |
Interest or penalties | $ 0 |
NOTES PAYABLE AND FINANCING T_3
NOTES PAYABLE AND FINANCING TRANSACTIONS (Schedule of Maturities of Term Loan for Future Fiscal Years) (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Fiscal Year: | |
2023 | $ 3,293 |
2024 | 1,344 |
2025 | 1,397 |
2026 | 1,451 |
2027 | 1,508 |
Thereafter | 4,597 |
Total principal payments | $ 13,590 |
NOTES PAYABLE AND FINANCING T_4
NOTES PAYABLE AND FINANCING TRANSACTIONS (Details Narrative) - USD ($) | Nov. 06, 2020 | Jun. 30, 2022 | Mar. 31, 2021 |
Debt Instrument [Line Items] | |||
Debt outstanding | $ 13,590,000 | ||
Term Loan One [Member] | Minnesota Bank And Trust [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 7,525,000 | ||
Periodic payment of principal and interest | $ 97,000 | ||
Debt instrument, maturity date | Nov. 01, 2027 | ||
Debt outstanding | $ 3,770,331 | 5,792,000 | |
Amount borrowed for repurchase of common stock | $ 3,000,000 | ||
Interest rate | 3.84% | ||
Term Loan Two [Member] | Minnesota Bank And Trust [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 1,000,000 | ||
Periodic payment of principal and interest | $ 15,000 | ||
Debt instrument, maturity date | Nov. 01, 2027 | ||
Debt outstanding | 862,000 | ||
Amount borrowed for property improvements | $ 1,000,000 | ||
Interest rate | 3.84% | ||
Revolving Loan [Member] | Minnesota Bank And Trust [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 2,000,000 | ||
Debt instrument, maturity date | Nov. 05, 2023 | ||
Interest rate | 2.75% | ||
Amount borrowed on revolving loan | 2,000,000 | ||
Minnesota Bank And Trust [Member] | |||
Debt Instrument [Line Items] | |||
Unamortized loan origination fees | $ 55,000 | ||
Percentage of late payment fee | 5% | ||
Increased percentage of default late payment | 3% | ||
Property Loan [Member] | Minnesota Bank And Trust [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 5,200,000 | ||
Unamortized loan origination fees | $ 26,037 | ||
Interest rate | 3.55% | ||
Periodic payment of principal and interest | $ 30,000 | ||
Debt instrument, maturity date | Nov. 01, 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. | ||
Debt outstanding | $ 4,935,000 |
LEASES (Schedule of Future Mini
LEASES (Schedule of Future Minimum Base Rental Payment) (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Fiscal Year: | |
2023 | $ 504 |
2024 | 519 |
2025 | 535 |
2026 | 551 |
2027 | 567 |
Thereafter | 143 |
Total lease payments | 2,819 |
Less imputed interest: | (386) |
Total | $ 2,433 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Leases | ||
Operating lease liability current portion | $ 379,000 | $ 344,000 |
Interest rate | 5.30% | |
Cash paid lease liability | $ 489,000 | $ 475,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Rent expense | $ 559,000 | $ 558,000 |
401(k) Plan [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Percentage of matching contributions | 25% | |
Percentage of maximum employee contributions | 5% | |
Compensation expense | $ 72,000 | 81,000 |
Forfeited match contributions used to reduce match expense | $ 25,000 | $ 17,000 |
SHARE-BASED COMPENSATION (Summa
SHARE-BASED COMPENSATION (Summary of Stock Option Activity) (Details) - Equity Option [Member] - $ / shares | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Outstanding at beginning of period | 31,500 | 54,000 |
Outstanding at beginning of period (in dollars per share) | $ 1.81 | $ 1.86 |
Options granted | ||
Options granted (in dollars per share) | ||
Options exercised | (25,000) | (22,500) |
Options exercised (in dollars per share) | $ 1.80 | $ 1.94 |
Options forfeited | ||
Options forfeited (in dollars per share) | ||
Outstanding at end of period | 6,500 | 31,500 |
Outstanding at end of period (in dollars per share) | $ 1.82 | $ 1.81 |
Stock Options Exercisable at end of period | 6,500 | 31,500 |
Stock Options Exercisable at end of period (in dollars per share) | $ 1.82 | $ 1.81 |
SHARE-BASED COMPENSATION (Perfo
SHARE-BASED COMPENSATION (Performance awards activity) (Details) - Performance Shares [Member] - $ / shares | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Outstanding at beginning of period | 105,000 | 160,000 |
Weighted-Average Grant Date Fair Value, Beginning | $ 8.73 | $ 8.19 |
Options granted | 17,500 | |
Weighted-Average Grant Date Fair Value, Granted | $ 20.34 | |
Options Vested | (40,000) | |
Weighted-Average Grant Date Fair Value, Granted, Vested | $ 8.19 | |
Options forfeited | (5,000) | (15,000) |
Weighted-Average Grant Date Fair Value, Forfeited | $ 4.46 | $ 4.46 |
Outstanding at end of period | 117,500 | 105,000 |
Weighted-Average Grant Date Fair Value, Ending | $ 10.64 | $ 8.73 |
SHARE-BASED COMPENSATION (Non-q
SHARE-BASED COMPENSATION (Non-qualified stock option activity) (Details) - Non Qualified Stock Option [Member] - $ / shares | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Outstanding at beginning of period | 346,500 | |
Outstanding at beginning of period (in dollars per share) | $ 41.83 | |
Options granted | 5,000 | 372,000 |
Options granted (in dollars per share) | $ 44.70 | $ 41.83 |
Options exercised | ||
Options exercised (in dollars per share) | ||
Options forfeited | (5,000) | (25,500) |
Options forfeited (in dollars per share) | $ 44.70 | $ 41.83 |
Outstanding at end of period | 346,500 | 346,500 |
Outstanding at end of period (in dollars per share) | $ 41.83 | $ 41.83 |
Stock Options Exercisable at end of period | 57,750 | |
Stock Options Exercisable at end of period (in dollars per share) | $ 27.50 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Jul. 02, 2020 | Dec. 31, 2021 | Feb. 28, 2021 | Dec. 31, 2020 | Feb. 28, 2020 | Dec. 31, 2017 | Sep. 30, 2014 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2016 | |
Board of Directors Chairman [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Number of awards granted during period | 5,000 | |||||||||
Performance Shares [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Unrecognized compensation cost | $ 322,000 | |||||||||
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. | |||||||||
Weighted average fair value | $ 4.46 | |||||||||
Aggregate share-based compensation expense | $ 194,000 | $ 84,000 | ||||||||
Weighted-average period | 1 year 11 months 19 days | |||||||||
Payment, Tax Withholding | $ 259,000 | |||||||||
Number of shares issued | 25,629 | |||||||||
Previously Forfeited Awards [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Number of awards granted during period | 17,500 | 48,000 | ||||||||
Weighted average fair value | $ 20.34 | $ 16.90 | ||||||||
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 | |||||||||
Equity Incentive Plan [Member] | Directors And Certain Employees [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Unrecognized compensation cost | $ 3,100,000 | |||||||||
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. | |||||||||
Weighted average fair value | $ 16.72 | |||||||||
Aggregate share-based compensation expense | $ 1,070,000 | 624,000 | ||||||||
Equity Incentive Plan [Member] | Directors And Certain Employees Two [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Number of awards granted during period | 62,000 | |||||||||
Period for award description | completion of service periods that ranged from 4 months to 1.3 years at inception and the achievement of our common stock trading at certain pre-determined prices. | |||||||||
Weighted average fair value | $ 3.16 | |||||||||
Aggregate share-based compensation expense | $ 182,000 | |||||||||
Former Stock Option Plans [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Options granted | 0 | 0 | ||||||||
Unrecognized compensation cost | $ 0 | |||||||||
Employees Stock Option Plan 2004 [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Intrinsic value of stock options outstanding | 92,000 | |||||||||
Intrinsic value of stock options exercisable | $ 92,000 | |||||||||
Weighted average remaining contractual life | 3 months 14 days | |||||||||
Employee Stock Purchase Plan [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Aggregate share-based compensation expense | $ 11,000 | $ 10,000 | ||||||||
Description of plan | offering and purchase periods of six months, and bases the pricing at which participant’s purchase shares of our common stock on a formula so as to result in a per share purchase price that approximates a 15% discount from the market price of a share of our common stock at the end of the purchase period. | |||||||||
Number of shares reserved for future issuance | 704,715 | |||||||||
Number of shares purchased and allocated to employee (in shares) | 2,576 | 2,677 | ||||||||
Exercise price (in dollars per share) | $ 23.33 | $ 21.47 | ||||||||
Number of shares options purchased (in shares) | 27,039 |
MAJOR CUSTOMERS & SUPPLIERS (Sa
MAJOR CUSTOMERS & SUPPLIERS (Sales) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Concentration Risk [Line Items] | ||
Total revenue | $ 42,041 | $ 38,029 |
Sales [Member] | ||
Concentration Risk [Line Items] | ||
Total revenue | $ 42,041 | $ 38,029 |
Percentage of concentrations risk | 100% | 100% |
Sales [Member] | Customer 1 [Member] | ||
Concentration Risk [Line Items] | ||
Total revenue | $ 27,686 | $ 22,163 |
Percentage of concentrations risk | 66% | 58% |
Sales [Member] | Customer 2 [Member] | ||
Concentration Risk [Line Items] | ||
Total revenue | $ 5,788 | $ 10,122 |
Percentage of concentrations risk | 14% | 27% |
Sales [Member] | Customer Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Total revenue | $ 33,474 | $ 32,285 |
Percentage of concentrations risk | 80% | 85% |
MAJOR CUSTOMERS AND SUPPLIERS (
MAJOR CUSTOMERS AND SUPPLIERS (AccountsReceivablePayable) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Concentration Risk [Line Items] | ||
Total accounts payable | $ 3,761 | $ 2,288 |
Accounts Receivable [Member] | ||
Concentration Risk [Line Items] | ||
Total gross accounts receivable | $ 15,384 | $ 10,935 |
Percentage of concentrations risk | 100% | 100% |
Accounts Receivable [Member] | Customer 1 [Member] | ||
Concentration Risk [Line Items] | ||
Total gross accounts receivable | $ 11,551 | $ 6,666 |
Percentage of concentrations risk | 75% | 61% |
Accounts Receivable [Member] | Customer 2 [Member] | ||
Concentration Risk [Line Items] | ||
Total gross accounts receivable | $ 2,152 | $ 3,710 |
Percentage of concentrations risk | 14% | 34% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Total gross accounts receivable | $ 13,703 | $ 10,376 |
Percentage of concentrations risk | 89% | 95% |
Inventory Purchases [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentrations risk | 100% | 100% |
Total inventory purchases | $ 19,640 | $ 13,844 |
Inventory Purchases [Member] | Supplier Concentration Risk 1 [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentrations risk | 14% | 16% |
Total inventory purchases | $ 2,735 | $ 2,238 |
Inventory Purchases [Member] | Warranty amortization | ||
Concentration Risk [Line Items] | ||
Percentage of concentrations risk | 12% | 16% |
Total inventory purchases | $ 2,335 | $ 2,159 |
Inventory Purchases [Member] | Supplier Concentration Risk 3 [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentrations risk | 11% | 9% |
Total inventory purchases | $ 2,199 | $ 1,318 |
Inventory Purchases [Member] | Supplier Concentration Risk 4 [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentrations risk | 13% | 6% |
Total inventory purchases | $ 2,587 | $ 856 |
Inventory Purchases [Member] | Supplier Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentrations risk | 50% | 47% |
Total inventory purchases | $ 9,856 | $ 6,571 |
Accounts Payable [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentrations risk | 100% | 100% |
Total accounts payable | $ 3,761 | $ 2,288 |
Accounts Payable [Member] | Supplier Concentration Risk 1 [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentrations risk | 19% | 10% |
Total accounts payable | $ 721 | $ 225 |
Accounts Payable [Member] | Warranty amortization | ||
Concentration Risk [Line Items] | ||
Percentage of concentrations risk | 10% | 9% |
Total accounts payable | $ 372 | $ 206 |
Accounts Payable [Member] | Supplier Concentration Risk 4 [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentrations risk | 11% | 7% |
Total accounts payable | $ 430 | $ 153 |
Accounts Payable [Member] | Supplier Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Percentage of concentrations risk | 40% | 26% |
Total accounts payable | $ 1,523 | $ 584 |
NET INCOME PER SHARE (Details)
NET INCOME PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Basic: | ||
Net income | $ 3,855 | $ 5,821 |
Weighted-average shares outstanding | 3,636 | 3,797 |
Basic earnings per share | $ 1.06 | $ 1.53 |
Diluted: | ||
Weighted-average shares outstanding | 3,636 | 3,797 |
Effect of dilutive securities – stock options & performance awards | 127 | 139 |
Weighted-average shares used in calculation of diluted earnings per share | 3,763 | 3,936 |
Diluted earnings per share | $ 1.02 | $ 1.48 |
COMMON STOCK _ Share Repurcha_2
COMMON STOCK – Share Repurchase Program (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | 31 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | |
Equity, Class of Treasury Stock [Line Items] | |||
Share repurchases, value | $ 1,606 | $ 5,537 | |
Share Repurchase Program [Member] | 10b5-1 Plan [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Shares repurchased during the year, number of shares | 75,250 | 216,171 | |
Share repurchases, value | $ 1,600 | $ 5,500 | |
Share Repurchase Program [Member] | 10b5-1 Plan [Member] | Cumulative Basis [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Shares repurchased during the year, number of shares | 1,110,746 | ||
Share repurchases, value | $ 15,700 |