| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business Activity Procyon Corporation has two wholly-owned
subsidiaries, Amerx Health Care Corp. (Amerx) and Sirius Medical Supply, Inc. (Sirius). Amerx manufactures and markets wound and
skin care products primarily in the United States whereas Sirius markets diabetic supplies primarily to Medicare patients in the
United States. As previously reported, in July 2009, we sold substantially all of the assets of Sirius to a third party, such that,
as of July 31, 2009, Sirius no longer has any material operations. Management is considering various options for the future direction
of Sirius. Principles of Consolidation The consolidated financial statements
include the accounts of Procyon Corporation and its wholly-owned subsidiaries, Amerx and Sirius. All material inter-company accounts
and transactions are eliminated. Use of Estimates The preparation of financial statements
in conformity with accounting principles generally accepted in the United States of America requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities, the 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. Revenue Recognition The Company recognizes revenue in accordance
with S.E.C. Staff Accounting Bulletin Topic 13 - Revenue Recognition which requires that four basic criteria must be met before
revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services have been rendered;
(3) the sellers price to the buyer is fixed or determinable; and, (4) collectibility is reasonably assured. The Company recognizes revenue related
to product sales to customers who have placed orders upon shipment of such orders. The Company records revenue at the amounts expected
to be collected directly from customers. In May 2014, the FASB issued a new standard
related to revenue recognition. Under the new standard, recognition of revenue occurs when a customer obtains control of promised
goods or services in an amount that reflects the consideration to which the entity expects to receive in exchange for those goods
or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash
flows arising from contracts with customers. The new standard will be effective for the Company beginning July 1, 2017 and early
adoption is not permitted. We are currently evaluating the impact this standard will have on our consolidated financial statements. Accounts Receivable and Concentration of Credit Risk Amerx grants credit to customers, most
of whom are national pharmaceutical distributors, drug stores nationwide and physicians. Amerx wholesales its products to national
pharmaceutical distributors and drug stores at a sales term of 2/10, net 30 days. Amerx has a written return policy with its customers.
Each return request is reviewed by management for approval. Sales to physicians are at contracted rates and standard payment term
is 2/10 net 30 days. The valuation of accounts receivable is
based upon the credit-worthiness of customers as well as historical collection experience. Estimating the credit worthiness of
customers and recoverability of customer accounts requires us to exercise considerable judgment. Allowances for doubtful accounts
are recorded as a selling, general and administrative expense for estimated amounts expected to be uncollectible from third-party
payers and customers. The Company bases its estimates on its historical collection and write-off experience, current trends, credit
policy, and on analysis of accounts receivable by aging category. As of June 30, 2016 and 2015, accounts receivable allowance was
approximately $2,700 and $14,000, or less than 1% and 6% respectively of gross accounts receivable. Inventories Inventories are valued at the lower of
average cost or market determined by the first-in, first-out method. Property and Equipment Property and equipment are stated at cost.
Depreciation is computed on a straight-line basis over their estimated useful lives. Leased equipment is recorded at its
fair market value at the beginning of the lease term and is depreciated over the life of the equipment. Depreciation on leased
equipment is included in depreciation expense. Cash and Cash Equivalents For the purpose of the Statements of Cash
Flows, the Company considers cash-on-hand, demand deposits in banks and highly liquid investments purchased with an original maturity
of three months or less to be cash equivalents. Concentration of Credit Risk The Company maintains its cash at various
financial institutions. All noninterest-bearing transaction accounts are fully insured by the Federal Deposit Insurance Corporation,
regardless of the balance of the account, at all insured institutions. At June 30, 2016 and 2015, our uninsured cash balance was
$0. Shipping and Handling Costs Shipping and handling costs incurred were
approximately $92,000 and $107,000 for the years ended June 30, 2016, and 2015, respectively, and were included in selling, general
and administrative expenses. Advertising and Marketing The Company records advertising and marketing
expenses in the periods in which they are incurred. During the years ended June 30, 2016 and 2015, approximately $451,000 and $416,000,
of advertising and marketing costs were included in selling, general and administrative expenses for each respective year. Deferred Income Taxes Deferred income taxes
are recognized for the expected tax consequences in future years for differences between the tax bases of assets and liabilities
and their financial reporting amounts, based upon exacted tax laws and statutory tax rates applicable to the periods in which the
differences are expected to affect taxable income. The Company accounts for income taxes under Topic 740 - Income Tax in the Accounting
Standards Codification. A valuation allowance is used to reduce deferred tax assets to the net amount expected to be recovered
in future periods. The estimates for deferred tax assets and the corresponding valuation allowance require us to exercise complex
judgments. We periodically review and adjust those estimates based upon the most current information available. We did not have
a valuation allowance as of June 30, 2016 and 2015. Because the recoverability of deferred tax assets is directly dependent upon
future operating results, actual recover ability of deferred tax assets may differ materially from our estimates. Net Income Per Share The Company computes net income per share
in accordance with Accounting Standards Codification Topic 260 - Earnings per Share (Topic 260). Topic 260 requires presentation
of both basic and diluted earnings per shares (EPS) on the face of the income statement. Basic EPS is computed by dividing net
income available to common shareholders (numerator) by the weighted average number of common shares outstanding (denominator) during
the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period including stock options,
using the treasury stock method, and convertible preferred stock, using the if-converted method. In computing diluted EPS, the
average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock
options. Diluted EPS excludes all dilutive potential common shares if their effect is anti-dilutive. Fair Value of Financial Instruments The carrying value of cash, accounts receivable,
prepaid expenses, deposits, inventory, accounts payable and accrued expenses approximate fair value. Considerable judgement is required in
interpreting market data to develop the estimates of fair value, and accordingly, the estimates are not necessarily indicative
of the amounts that the Company could realize in a current market exchange. Stock Based Compensation The Company maintains the Procyon Corporation
2009 Stock Option Plan (the "2009 Option Plan"). The 2009 Option Plan was approved by the Company's shareholders on December
8, 2009 and will expire on December 8, 2019. The 2009 Option Plan provides for the
granting of incentive stock options, non-qualified stock options, and stock appreciation rights ("SARs") to eligible
officers, directors, employees and consultants of the Company and its subsidiaries. The 2009 Option Plan is administered by the
Compensation Committee. The Board of Directors has authorized the issuance of 500,000 shares of common stock to underlie the granting
of incentive stock options and 500,000 shares of common stock to underlie the granting of non-qualified stock options and SARs
under the 2009 Option Plan. The Board issued 250,000 shares of common stock to underlie Non-Qualified Stock Options, on September
27, 2016, effective June 30, 2016. However, 40,000 Options to purchase common stock were recently awarded to Justice Anderson,
pursuant to the terms of his employment agreement, effective October 1, 2015. As of June 30, 2015, no other stock options or other
awards have been granted under the 2009 Option Plan. The 1,000,000 shares of common stock that have been reserved for the 2009
Option Plan (250,000 recently issued for Non-Qualified Stock Options) have not been registered under the Securities Act of 1933. Eligible participants under the 2009 Option
Plan must be such full or part-time officers and other employees, non-employee directors and key persons (including consultants
and prospective employees) of the Company and its Subsidiaries as are selected from time to time by the Compensation Committee
in its sole discretion. Only employees may receive incentive stock options. Employees, non-employee directors and consultants may
receive non-qualified stock options or SARs. No stock options or SARs have been granted under the 2009 Option Plan. The fair value of a stock option is determined
using the Black-Scholes option-pricing model, which values options based on the stock price at the grant date, the expected life
of the option, the estimated volatility of the stock, the expected dividend payments, and the risk-free interest rate over the
life of the option. The Black-Scholes option valuation model
was developed for estimating the fair value of traded options that have no vesting restrictions and are fully transferable. Because
option valuation models require the use of subjective assumptions, changes in these assumptions can materially affect the fair
value of the options. Our options do not have the characteristics of traded options, therefore, the option valuation models do
not necessarily provide a reliable measure of the fair value of our options. An Agreement to grant 40,000 Options to
purchase common stock was executed and delivered to Justice Anderson, pursuant to his executive employment agreement, on September
27, 2016, but with a grant date of June 30, 2016. Equity instruments issued to non-employees
in exchange for goods, fees and services are accounted for under the fair value-based method of Accounting Standards Codification
Topic 718 - Compensation - Stock Compensation (Topic 718"). Subsequent Events We have evaluated
subsequent events through September 26, 2016, which is the date the financial statements were available to be issued. |
