Pro-Dex (PDEX) 10-Q 3 Nov 22 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Sep. 30, 2022	Nov. 02, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2022
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--06-30
Entity File Number	0-14942
Entity Registrant Name	PRO-DEX, INC.
Entity Central Index Key	0000788920
Entity Tax Identification Number	84-1261240
Entity Incorporation, State or Country Code	CO
Entity Address, Address Line One	2361 McGaw Avenue
Entity Address, City or Town	Irvine
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92614
City Area Code	(949)
Local Phone Number	769-3200
Title of 12(b) Security	Common Stock, no par value
Trading Symbol	PDEX
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		3,580,316

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022
Current Assets:
Cash and cash equivalents	$ 2,798	$ 849
Investments	813	755
Accounts receivable, net of allowance for doubtful accounts of $2 and $0 at September 30, 2022 and at June 30, 2022, respectively	11,045	15,384
Deferred costs	587	710
Inventory	15,664	12,678
Prepaid expenses and other current assets	928	790
Total current assets	31,835	31,166
Land and building, net	6,319	6,343
Equipment and leasehold improvements, net	4,852	4,833
Right of use asset, net	2,156	2,248
Intangibles, net	108	118
Deferred income taxes, net	764	797
Investments	1,889	1,779
Other assets	42	42
Total assets	47,965	47,326
Current Liabilities:
Accounts payable	3,549	3,761
Accrued liabilities	3,245	2,751
Income taxes payable	731	544
Deferred revenue	851	1,013
Note payable	3,297	3,285
Total current liabilities	11,673	11,354
Lease liability, net of current portion	1,954	2,054
Notes payable, net of current portion	9,922	10,250
Total non-current liabilities	11,876	12,304
Total liabilities	23,549	23,658
Shareholders’ Equity:
Common stock; no par value; 50,000,000 shares authorized; 3,606,422 and 3,596,131 shares issued and outstanding at September 30, 2022 and June 30, 2022, respectively	7,354	7,682
Retained earnings	17,062	15,986
Total shareholders’ equity	24,416	23,668
Total liabilities and shareholders’ equity	$ 47,965	$ 47,326

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 2	$ 0
Common shares, par value	$ 0	$ 0
Common shares, authorized	50,000,000	50,000,000
Common shares, issued	3,606,422	3,596,131
Common shares, outstanding	3,606,422	3,596,131

CONDENSED CONSOLIDATED INCOME S

CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Net sales	$ 11,087	$ 9,988
Cost of sales	8,131	6,560
Gross profit	2,956	3,428
Operating expenses:
Selling expenses	53	37
General and administrative expenses	1,024	1,093
Research and development costs	929	980
Total operating expenses	2,006	2,110
Operating income	950	1,318
Other income (expense):
Interest and dividend income	218	24
Realized gain on sale of marketable equity investments	6
Unrealized gain on marketable equity investments	250	149
Interest expense	(130)	(120)
Total other income	344	53
Income before income taxes	1,294	1,371
Provision for income taxes	218	307
Net income	$ 1,076	$ 1,064
Basic net income per share	$ 0.30	$ 0.29
Diluted net income per share	$ 0.29	$ 0.28
Basic	3,616,392	3,651,334
Diluted	3,694,959	3,777,118
Common shares outstanding	3,606,422	3,666,319

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY - USD ($) $ in Thousands	Common Stock [Member]	Retained Earnings [Member]	Total
Balance at beginning at Jun. 30, 2021	$ 7,953	$ 12,131
Share-based compensation expense	300
Stock option exercise
Share repurchases	(95)
Shares withheld from common stock issued to pay employee payroll taxes
ESPP shares issued	30
Net income		1,064	1,064
Balance at end at Sep. 30, 2021	8,188	13,195	21,383
Balance at beginning at Jun. 30, 2022	7,682	15,986	23,668
Share-based compensation expense	207
Stock option exercise	8
Share repurchases	(354)
Shares withheld from common stock issued to pay employee payroll taxes	(223)
ESPP shares issued	34
Net income		1,076	1,076
Balance at end at Sep. 30, 2022	$ 7,354	$ 17,062	$ 24,416

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 1,076	$ 1,064
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	193	184
Share-based compensation	207	300
Unrealized (gain) loss on marketable equity investments	(250)	(149)
Non-cash lease expense	2	6
Amortization of loan fees	2	2
Gain on sale of investments	(6)
Deferred income taxes	32
Bad debt expense	2	5
Changes in operating assets and liabilities:
Accounts receivable and other receivables	4,337	834
Deferred costs	123	9
Inventory	(2,986)	(470)
Prepaid expenses and other assets	(138)	284
Accounts payable and accrued expenses	273	177
Deferred revenue	(162)	143
Income taxes payable	187	312
Net cash provided by operating activities	2,892	2,701
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of equipment and improvements	(178)	(848)
Purchases of investments		(14)
Increase in intangibles		(12)
Proceeds from sale of investments	88
Net cash used in investing activities	(90)	(874)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on notes payable	(1,318)	(306)
Proceeds from Minnesota Bank & Trust loans, net of origination fees	1,000
Proceeds from stock option exercises and ESPP contributions	42	30
Payments of employee taxes on net issuance of common stock	(223)
Repurchases of common stock	(354)	(95)
Net cash used in financing activities	(853)	(371)
Net increase in cash and cash equivalents	1,949	1,456
Cash and cash equivalents, beginning of period	849	3,721
Cash and cash equivalents, end of period	2,798	5,177
Non-cash investing and financing activity:
Cashless stock option exercise		45
Cash paid during the period for:
Interest	89	121
Income taxes, net of refunds	$ 241

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
BASIS OF PRESENTATION	NOTE 1. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of Pro-Dex, Inc. (“we,” “us,” “our,” “Pro-Dex,” or the “Company”) have been prepared in accordance with principles generally in United States (“U.S. GAAP”) interim financial information and with the instructions to Form 10-Q and Regulation S-K. Accordingly, they not include all of the information and footnotes required U.S. GAAP for complete financial statements. These financial statements should be read in conjunction with the financial statements presented in our Annual Report Form 10-K for the fiscal year ended June 30, 2022. In the opinion of management, all adjustments considered necessary for fair presentation have been included. The results of operations for such interim periods are not necessarily indicative of the results that may be expected for the full year. For further information, refer to the financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended June 30, 2022.

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	3 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS	NOTE 2. DESCRIPTION OF BUSINESS We specialize in the design, development and manufacture of autoclavable, battery-powered and electric, multi-function surgical drivers and shavers used primarily in the orthopedic, thoracic, and maxocranial facial markets. We have patented adaptive torque-limiting software and proprietary sealing solutions which appeal to our customers, primarily medical device distributors. We also manufacture and sell rotary air motors to a wide range of industries. In August 2020, we formed a wholly owned subsidiary, PDEX Franklin, LLC (“PDEX Franklin”), to hold title for an approximate 25,000 square foot industrial building in Tustin, California (the “Franklin Property”) that we acquired on November 6, 2020, in order to allow for the continued growth of our business. The condensed consolidated financial statements include the accounts of the Company and PDEX Franklin and all significant inter-company accounts and transactions have been eliminated. This subsidiary has no separate operations.

NET SALES

NET SALES	3 Months Ended
	Sep. 30, 2022
Equity [Abstract]
NET SALES	NOTE 3. NET SALES The following table presents the disaggregation of net sales by revenue recognition model (in thousands): Schedule of disaggregation of net sales Three months ended 2022 2021 Net Sales: Over-time revenue recognition $ 907 $ 196 Point-in-time revenue recognition 10,180 9,792 Total net sales $ 11,087 $ 9,988 The timing of revenue recognition, billings, and cash collections results in billed accounts receivables, unbilled receivables (presented as deferred costs on our condensed consolidated balance sheets) and customer advances and deposits (presented as deferred revenue on our condensed 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 three months ended September 30, 2022 and 2021, we recorded $ 551,000 0 851,000 The following tables summarize our contract assets and liability balances (in thousands): Schedule of contract assets and liability As of and for the 2022 2021 Contract assets beginning balance $ 710 $ 212 Expenses incurred during the year 333 96 Amounts reclassified to cost of sales (448 ) (111 ) Amounts allocated to discounts for standalone selling price (8 ) (12 ) Contract assets ending balance $ 587 $ 185 As of and for the 2022 2021 Contract liabilities beginning balance $ 1,013 $ 150 Payments received from customers 389 143 Amounts reclassified to revenue (551 ) — Contract liabilities ending balance $ 851 $ 293

COMPOSITION OF CERTAIN FINANCIA

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS	3 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS	NOTE 4. COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS Investments Investments are stated at fair market value and consist of the following (in thousands): Schedule of investments September 30, June 30, Marketable equity securities - short-term $ 813 $ 755 Marketable equity securities - long-term 1,889 1,779 Total marketable equity securities $ 2,702 $ 2,534 Investments at September 30, 2022 and June 30, 2022 had an aggregate cost basis $ 2,714,000 2,796,000 12,000 (gross unrealized losses of $ 325,000 313,000 the investments included net unrealized losses of $ 262,000 369,000 107,000 Of the total marketable equity securities at September 30, 2022 and June 30, 2022, $ 813,000 755,000 We invest surplus cash from time to time through our Investment Committee, which is comprised of one management director, Mr. Van Kirk, and two non-management directors, Mr. Cabillot and Mr. Swenson, who chairs the committee. Both Mr. Cabillot and Mr. Swenson are active investors with extensive portfolio management expertise. We leverage the experience of these committee members to make investment decisions for the investment of our surplus operating capital or borrowed funds. Additionally, many of our securities holdings include stocks of public companies that either Messrs. Swenson or Cabillot or both may own from time to time either individually or through the investment funds that they manage, or other companies whose boards they sit on, such as Air T, Inc. Inventory Inventory is stated at the lower of cost (first-in, first-out) or net realizable value and consists of the following (in thousands): Schedule of inventory September 30, June 30, Raw materials/purchased components $ 7,641 $ 6,323 Work in process 4,104 3,463 Sub-assemblies/finished components 2,183 2,118 Finished goods 1,736 774 Total inventory $ 15,664 $ 12,678 Intangibles Intangibles consist of the following (in thousands): Schedule of intangibles September 30, June 30, Patent-related costs $ 208 $ 208 Less accumulated amortization (100 ) (90 ) $ 108 $ 118 Patent-related costs consist of legal fees incurred in connection with both patent applications and a patent issuance, and will be amortized over the estimated life of the product(s) that is or will be utilizing the technology, or expensed immediately in the event the patent office denies the issuance of the patent. Future amortization expense is estimated to be $ 27,000 3

WARRANTY

WARRANTY	3 Months Ended
	Sep. 30, 2022
Guarantees and Product Warranties [Abstract]
WARRANTY	NOTE 5. WARRANTY The warranty accrual is based on historical costs of warranty repairs and expected future identifiable warranty expenses and is included in accrued expenses in the accompanying balance sheets. As of September 30, 2022 and June 30, 2022, the warranty reserve amounted to $ 366,000 340,000 Information regarding the accrual for warranty costs for the three months ended September 30, 2022 and 2021 are as follows (in thousands): Schedule of accrual warranty costs As of and for the 2022 2021 Beginning balance $ 340 $ 221 Accruals during the period 54 32 Changes in estimates of prior period warranty accruals 14 (8 ) Warranty amortization/utilization (42 ) (13 ) Ending balance $ 366 $ 232

NET INCOME PER SHARE

NET INCOME PER SHARE	3 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
NET INCOME PER SHARE	NOTE 6. NET INCOME PER SHARE We calculate basic net income per share by dividing net income by the weighted-average number of common shares outstanding during the reporting period. Diluted income per share reflects the effects of potentially dilutive securities, which consist entirely of outstanding stock options and performance awards. The following table presents reconciliations of the numerators and denominators of the basic and diluted income per share computations. In the tables below, income amounts represent the numerator, and share amounts represent the denominator (in thousands, except per share amounts): Schedule of weighted average shares outstanding calculation of basic and diluted per share Three Months Ended 2021 2021 Basic: Net income $ 1,076 $ 1,064 Weighted-average shares outstanding 3,616 3,651 Basic earnings per share $ 0.30 $ 0.29 Diluted: Net income $ 1,076 $ 1,064 Weighted-average shares outstanding 3,616 3,651 Effect of dilutive securities 79 126 Weighted-average shares used in calculation of diluted earnings per share 3,695 3,777 Diluted earnings per share $ 0.29 $ 0.28

INCOME TAXES

INCOME TAXES	3 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 7. INCOME TAXES Deferred income taxes are provided on liability method whereby deferred tax assets and liabilities are recognized for temporary differences. Temporary differences are the differences between the reported amounts assets and liabilities and their tax bases. Deferred assets are reduced by valuation allowance when, in the opinion management, it is more likely than not that some portion or deferred tax assets will not realized. Deferred tax assets and liabilities are adjusted for the effects changes in tax laws and rates the date of enactment. Significant management judgment is required in determining our provision for income taxes and the recoverability our deferred tax assets. Such determination is based primarily on our historical taxable income or loss, with some consideration given our estimates future taxable income loss by jurisdictions in which we operate and the period over which our deferred tax assets would be recoverable. We recognize accrued interest and penalties related to unrecognized tax benefits when applicable. As of September 30, 2022 and 2021, we recognized accrued interest of $ 5,000 51,000 17 22 We are subject to U.S. federal income tax, well income tax multiple state tax jurisdictions. We are currently open audit under the statute of limitations by the Internal Revenue Service for the years ended June 30, 2019 and later. Our state income tax returns are open audit under the statute of limitations for the years ended June 30, 2018 and later. However, because of our prior net operating losses and research credit carryovers, our tax years from June 30, 2007 are open to audit. We do not anticipate significant change the total amount unrecognized tax benefits within the next months.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	3 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
SHARE-BASED COMPENSATION	NOTE 8. SHARE-BASED COMPENSATION Through 2014, we had two equity compensation plans, the Second Amended and Restated 2004 Stock Option Plan (the “Employee Stock Option Plan”) and the Amended and Restated 2004 Directors’ Stock Option Plan (the “Directors’ Stock Option Plan”) (collectively, the “Former Stock Option Plans”). The Employee Stock Option Plan and Directors’ Stock Option Plan were terminated in June 2014 and December 2014, respectively. In September 2016, our Board approved the establishment of the 2016 Equity Incentive Plan, which was approved by our shareholders at our 2016 Annual Meeting. The 2016 Equity Incentive Plan provides for the award of up to 1,500,000 200,000 372,000 Former Stock Option Plans There were no during the three months ended September 30, 2022 and 2021. September 30, 2022, there was no outstanding stock options under those plans are fully vested. 1,500 2.14 0.35 23,000 5,000 25,000 1.73 1.80 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 30,000 21,000 292,000 2.76 On July 1, 2022, it was determined by the Compensation Committee of our Board of Directors that the vesting of performance awards for 37,500 23,641 223,000 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. 171,000 274,000 16.72 2.9 In February 2021, the Compensation Committee of our Board of Directors granted 62,000 completion of service periods that range from 4 months to 1.3 years at inception and the achievement of our common stock trading at certain pre-determined prices. 3.16 Employee Stock Purchase Plan In September 2014, our Board approved the establishment of an Employee Stock Purchase Plan (the “ESPP”). The ESPP conforms to the provisions of Section 423 of the Internal Revenue Code, has coterminous offering and purchase periods of six months, and bases the pricing to purchase shares of our common stock on a formula so as to result in a per-share purchase price that approximates a 15% discount from the market price of a share of our common stock at the end of the purchase period. 704,715 During the first quarters ended September 30, 2022 and 2021, 2,503 1,130 13.52 26.17 29,542 6,000 5,000

MAJOR CUSTOMERS & SUPPLIERS

MAJOR CUSTOMERS & SUPPLIERS	3 Months Ended
	Sep. 30, 2022
Risks and Uncertainties [Abstract]
MAJOR CUSTOMERS & SUPPLIERS	NOTE 9. MAJOR CUSTOMERS & SUPPLIERS Information with respect to customers accounted for sales in excess of 10 either of three-month periods ended September 30, 2022 and 2021 is as follows (in thousands, except percentages): Schedule of sales by major customers Three Months Ended September 30, 2022 2021 Amount Percent of Amount Percent of Total revenue $ 11,087 100 % $ 9,988 100 % Customer concentration: Customer 1 $ 7,481 68 % $ 6,991 70 % Customer 2 2,156 19 % 879 9 % Total $ 9,637 87 % $ 7,870 79 % Information with respect to accounts receivable from those customers that comprised more than 10 Schedule of accounts receivable of major customers September 30, 2022 June 30, 2022 Total gross accounts receivable $ 11,047 100 % $ 15,384 100 % Customer concentration: Customer 1 $ 9,055 82 % $ 11,551 75 % Customer 2 1,890 17 % 2,152 14 % Total $ 10,945 99 % $ 13,703 89 % During the three months ended September 30, 2022 and 2021, we had three suppliers that each accounted for more than 10% of total inventory purchases. Amounts owed to the fiscal 2022 significant suppliers at September 30, 2022 totaled $970,000, $266,000 and $368,000, respectively, and at June 30, 2022 totaled $721,000, $430,000 and $372,000, respectively.

NOTES PAYABLE AND FINANCING TRA

NOTES PAYABLE AND FINANCING TRANSACTIONS	3 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
NOTES PAYABLE AND FINANCING TRANSACTIONS	NOTE 10. NOTES PAYABLE AND FINANCING TRANSACTIONS Minnesota Bank & Trust (“MBT”) On November 6, 2020 (the “Closing Date”), PDEX Franklin, a newly created wholly owned subsidiary of the Company, purchased an approximate 25,000 square foot industrial building in Tustin, California (the “Franklin Property”). A portion of the purchase price was financed by a loan from MBT to PDEX Franklin in the principal amount of approximately $ 5.2 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. 4,889,000 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 5,556,000 The Term Loan B matures on November 1, 2027 3.84 15,000 827,000 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.

COMMON STOCK

COMMON STOCK	3 Months Ended
	Sep. 30, 2022
Equity [Abstract]
COMMON STOCK	NOTE 11. COMMON STOCK Share Repurchase Program In December 2019, our Board approved a new share repurchase program authorizing us to repurchase up to 1 million 20,853 354,000 3,616 95,000 1,131,599 16.0

LEASES

LEASES	3 Months Ended
	Sep. 30, 2022
Leases
LEASES	NOTE 12. LEASES Our operating lease right-of-use asset and long-term liability are presented separately on our condensed consolidated balance sheet. The current portion of our operating lease liability as of September 30, 2022, in the amount of $ 388,000 As of September 30, 2022, our operating lease has a remaining lease term of five years and an imputed interest rate of 5.53 123,000 12,000 As of September 30, 2022, the maturity of our lease liability is as follows (in thousands): Schedule of Maturities of Lease Liabilities Operating Fiscal Year: 2023 $ 381 2024 519 2025 535 2026 551 2027 567 Thereafter 143 Total lease payments 2,696 Less imputed interest (353 ) Total $ 2,343

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 13. COMMITMENTS AND CONTINGENCIES Legal Matters We may be involved from time to time 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.

NET SALES (Tables)

NET SALES (Tables)	3 Months Ended
	Sep. 30, 2022
Equity [Abstract]
Schedule of disaggregation of net sales	Schedule of disaggregation of net sales Three months ended 2022 2021 Net Sales: Over-time revenue recognition $ 907 $ 196 Point-in-time revenue recognition 10,180 9,792 Total net sales $ 11,087 $ 9,988
Schedule of contract assets and liability	Schedule of contract assets and liability As of and for the 2022 2021 Contract assets beginning balance $ 710 $ 212 Expenses incurred during the year 333 96 Amounts reclassified to cost of sales (448 ) (111 ) Amounts allocated to discounts for standalone selling price (8 ) (12 ) Contract assets ending balance $ 587 $ 185 As of and for the 2022 2021 Contract liabilities beginning balance $ 1,013 $ 150 Payments received from customers 389 143 Amounts reclassified to revenue (551 ) — Contract liabilities ending balance $ 851 $ 293

COMPOSITION OF CERTAIN FINANC_2

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Tables)	3 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of investments	Schedule of investments September 30, June 30, Marketable equity securities - short-term $ 813 $ 755 Marketable equity securities - long-term 1,889 1,779 Total marketable equity securities $ 2,702 $ 2,534
Schedule of inventory	Schedule of inventory September 30, June 30, Raw materials/purchased components $ 7,641 $ 6,323 Work in process 4,104 3,463 Sub-assemblies/finished components 2,183 2,118 Finished goods 1,736 774 Total inventory $ 15,664 $ 12,678
Schedule of intangibles	Schedule of intangibles September 30, June 30, Patent-related costs $ 208 $ 208 Less accumulated amortization (100 ) (90 ) $ 108 $ 118

WARRANTY (Tables)

WARRANTY (Tables)	3 Months Ended
	Sep. 30, 2022
Guarantees and Product Warranties [Abstract]
Schedule of accrual warranty costs	Schedule of accrual warranty costs As of and for the 2022 2021 Beginning balance $ 340 $ 221 Accruals during the period 54 32 Changes in estimates of prior period warranty accruals 14 (8 ) Warranty amortization/utilization (42 ) (13 ) Ending balance $ 366 $ 232

NET INCOME PER SHARE (Tables)

NET INCOME PER SHARE (Tables)	3 Months Ended
	Sep. 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 Three Months Ended 2021 2021 Basic: Net income $ 1,076 $ 1,064 Weighted-average shares outstanding 3,616 3,651 Basic earnings per share $ 0.30 $ 0.29 Diluted: Net income $ 1,076 $ 1,064 Weighted-average shares outstanding 3,616 3,651 Effect of dilutive securities 79 126 Weighted-average shares used in calculation of diluted earnings per share 3,695 3,777 Diluted earnings per share $ 0.29 $ 0.28

MAJOR CUSTOMERS & SUPPLIERS (Ta

MAJOR CUSTOMERS & SUPPLIERS (Tables)	3 Months Ended
	Sep. 30, 2022
Risks and Uncertainties [Abstract]
Schedule of sales by major customers	Schedule of sales by major customers Three Months Ended September 30, 2022 2021 Amount Percent of Amount Percent of Total revenue $ 11,087 100 % $ 9,988 100 % Customer concentration: Customer 1 $ 7,481 68 % $ 6,991 70 % Customer 2 2,156 19 % 879 9 % Total $ 9,637 87 % $ 7,870 79 %
Schedule of accounts receivable of major customers	Schedule of accounts receivable of major customers September 30, 2022 June 30, 2022 Total gross accounts receivable $ 11,047 100 % $ 15,384 100 % Customer concentration: Customer 1 $ 9,055 82 % $ 11,551 75 % Customer 2 1,890 17 % 2,152 14 % Total $ 10,945 99 % $ 13,703 89 %

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Sep. 30, 2022
Leases
Schedule of Maturities of Lease Liabilities	Schedule of Maturities of Lease Liabilities Operating Fiscal Year: 2023 $ 381 2024 519 2025 535 2026 551 2027 567 Thereafter 143 Total lease payments 2,696 Less imputed interest (353 ) Total $ 2,343

NET SALES (Net sales) (Details)

NET SALES (Net sales) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Net Sales:
Over-time revenue recognition	$ 907	$ 196
Point-in-time revenue recognition	10,180	9,792
Total net sales	$ 11,087	$ 9,988

NET SALES (Contract assets and

NET SALES (Contract assets and liability) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Equity [Abstract]
Contract assets at beginning balance	$ 710	$ 212
Expenses incurred during the year	333	96
Amounts reclassified to cost of sales	(448)	(111)
Amounts allocated to discounts for standalone selling price	(8)	(12)
Contract assets at ending balance	587	185
Contract liabilities at beginning balance	1,013	150
Payments received from customers	389	143
Amounts reclassified to revenue	(551)
Contract liabilities at ending balance	$ 851	$ 293

NET SALES (Details Narrative)

NET SALES (Details Narrative) - USD ($)	Sep. 30, 2022	Sep. 30, 2021
Equity [Abstract]
Deferred revenue	$ 551,000	$ 0
Deferred Revenue	$ 851,000

COMPOSITION OF CERTAIN FINANC_3

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Schedule of investments) (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Marketable equity securities - short-term	$ 813	$ 755
Marketable equity securities - long-term	1,889	1,779
Total marketable equity securities	$ 2,702	$ 2,534

COMPOSITION OF CERTAIN FINANC_4

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Inventory) (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Raw materials/purchased components	$ 7,641	$ 6,323
Work in process	4,104	3,463
Sub-assemblies/finished components	2,183	2,118
Finished goods	1,736	774
Total inventory	$ 15,664	$ 12,678

COMPOSITION OF CERTAIN FINANC_5

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Intangible Assets) (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Jun. 30, 2022
Finite-Lived Intangible Assets [Line Items]
Less accumulated amortization	$ (100)	$ (90)
Intangible assets,net	108	118
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Total intangibles	$ 208	$ 208

COMPOSITION OF CERTAIN FINANC_6

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Details Narrative) - USD ($)	Sep. 30, 2022	Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Aggregate cost	$ 2,714,000	$ 2,796,000
Net unrealized gain (loss) on investments	12,000	262,000
Gross unrealized losses	325,000	369,000
Gross unrealized gains	313,000	107,000
Investment in common stock of company affiliated with company board members	813,000	$ 755,000
Future amortization expense	$ 27,000
Amortization years	3 years

WARRANTY (Schedule of accrual w

WARRANTY (Schedule of accrual warranty costs) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Guarantees and Product Warranties [Abstract]
Beginning balance	$ 340	$ 221
Accruals during the period	54	32
Changes in estimates of prior period warranty accruals	14	(8)
Warranty amortization and utilization	(42)	(13)
Ending balance	$ 366	$ 232

WARRANTY (Details Narrative)

WARRANTY (Details Narrative) - USD ($)	Sep. 30, 2022	Sep. 30, 2021
Guarantees and Product Warranties [Abstract]
Warranty reserve	$ 366,000	$ 340,000

NET INCOME PER SHARE (Details)

NET INCOME PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Basic:
Net income	$ 1,076	$ 1,064
Weighted-average shares outstanding	3,616	3,651
Basic earnings per share	$ 0.30	$ 0.29
Diluted:
Weighted-average shares outstanding	3,616	3,651
Effect of dilutive securities	79	126
Weighted-average shares used in calculation of diluted earnings per share	3,695	3,777
Diluted earnings per share	$ 0.29	$ 0.28

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Unrecognized tax benefits	$ 5,000	$ 51,000
Expected annual effective tax rate	17%	22%

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details Narrative) - USD ($)		1 Months Ended					3 Months Ended
	Jul. 02, 2020	Dec. 31, 2021	Feb. 28, 2021	Dec. 31, 2020	Feb. 28, 2020	Dec. 31, 2017	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2014	Sep. 30, 2016
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares outstanding							1,500
Weighted-average exercise prices							$ 2.14
Weighted-average remaining contractual life							4 months 6 days
Intrinsic value							$ 23,000
Stock Option Plans were exercised							5,000	25,000
Exercise prices							$ 1.73	$ 1.80
Non Qualified Stock Options [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of awards granted during period							372,000
Performance Shares [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of awards granted during period	37,500					200,000
Unrecognized compensation cost							$ 292,000
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							$ 30,000	$ 21,000
Weighted-average period							2 years 9 months 3 days
Number of shares issued	23,641
Payment, Tax Withholding	$ 223,000
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
Number of awards granted during period							200,000
Equity Incentive Plan [Member] | Directors And Certain Employees [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of awards granted during period				310,000
Unrecognized compensation cost							$ 2,900,000
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							$ 171,000	$ 274,000
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 range 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
Former Stock Option Plans [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options granted							0	0
Unrecognized compensation cost							$ 0
Employee Stock Purchase Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Aggregate share-based compensation expense							$ 6,000	$ 5,000
Description of plan									offering and purchase periods of six months, and bases the pricing to purchase shares of our common stock on a formula so as to result in a per-share purchase price that approximates a 15% discount from the market price of a share of our common stock at the end of the purchase period.
Number of shares reserved for future issuance									704,715
Number of shares purchased and allocated to employee (in shares)							2,503	1,130
Exercise price (in dollars per share)							$ 13.52	$ 26.17
Number of shares options purchased (in shares)							29,542

MAJOR CUSTOMERS & SUPPLIERS (Sa

MAJOR CUSTOMERS & SUPPLIERS (Sales) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Concentration Risk [Line Items]
Total revenue	$ 11,087	$ 9,988
Sales [Member]
Concentration Risk [Line Items]
Total revenue	$ 11,087	$ 9,988
Percentage of concentrations risk	100%	100%
Sales [Member] | Customer Concentration Risk 1 [Member]
Concentration Risk [Line Items]
Total revenue	$ 7,481	$ 6,991
Percentage of concentrations risk	68%	70%
Sales [Member] | Customer Concentration Risk 2 [Member]
Concentration Risk [Line Items]
Total revenue	$ 2,156	$ 879
Percentage of concentrations risk	19%	9%
Sales [Member] | Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Total revenue	$ 9,637	$ 7,870
Percentage of concentrations risk	87%	79%

MAJOR CUSTOMERS AND SUPPLIERS (

MAJOR CUSTOMERS AND SUPPLIERS (AccountsReceivablePayable) (Details) - Accounts Receivable [Member] - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2022	Jun. 30, 2022
Concentration Risk [Line Items]
Total gross accounts receivable	$ 11,047	$ 15,384
Percentage of concentrations risk	100%	100%
Customer Concentration Risk 1 [Member]
Concentration Risk [Line Items]
Total gross accounts receivable	$ 9,055	$ 11,551
Percentage of concentrations risk	82%	75%
Customer Concentration Risk 2 [Member]
Concentration Risk [Line Items]
Total gross accounts receivable	$ 1,890	$ 2,152
Percentage of concentrations risk	17%	14%
Customer Concentration Risk [Member]
Concentration Risk [Line Items]
Total gross accounts receivable	$ 10,945	$ 13,703
Percentage of concentrations risk	99%	89%

MAJOR CUSTOMERS & SUPPLIERS (De

MAJOR CUSTOMERS & SUPPLIERS (Details Narrative)	3 Months Ended		12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Jun. 30, 2022
Concentration Risk [Line Items]
Major customers suppliers description	Amounts owed to the fiscal 2022 significant suppliers at September 30, 2022 totaled $970,000, $266,000 and $368,000, respectively, and at June 30, 2022 totaled $721,000, $430,000 and $372,000, respectively.
Purchase [Member] | Supplier Concentration Risk [Member]
Concentration Risk [Line Items]
Percentage of concentrations risk	10%	10%
Purchase [Member] | Supplier Concentration Risk One [Member]
Concentration Risk [Line Items]
Percentage of concentrations risk	10%		10%

NOTES PAYABLE AND FINANCING T_2

NOTES PAYABLE AND FINANCING TRANSACTIONS (Details Narrative) - USD ($)	Nov. 06, 2020	Sep. 30, 2022	Mar. 31, 2021
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	$ 5,556,000
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		827,000
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]
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		$ 4,889,000

COMMON STOCK (Details Narrative

COMMON STOCK (Details Narrative) - Share Repurchase Program [Member] - 10b5-1 Plan [Member] - USD ($)	3 Months Ended		31 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Jun. 30, 2022
Equity, Class of Treasury Stock [Line Items]
Number of authorized shares to repurchase, shares	1,000,000
Shares repurchased during the year, number of shares	20,853	3,616
Share repurchases, value	$ 354,000	$ 95,000
Cumulative Basis [Member]
Equity, Class of Treasury Stock [Line Items]
Shares repurchased during the year, number of shares			1,131,599
Share repurchases, value			$ 16,000,000

LEASES (Schedule of Future Mini

LEASES (Schedule of Future Minimum Base Rental Payment) (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Fiscal Year:
2023	$ 381
2024	519
2025	535
2026	551
2027	567
Thereafter	143
Total lease payments	2,696
Less imputed interest	(353)
Total	$ 2,343

LEASES (Details Narrative)

LEASES (Details Narrative)	3 Months Ended
	Sep. 30, 2022 USD ($)
Leases
Operating lease liability current portion	$ 388,000
Interest rate	5.53%
Cash paid lease liability	$ 123,000
Cash paid for common area maintenance charges	$ 12,000