Procyon (PCYN) 10-Q 14 Feb 18 2018 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Dec. 31, 2017	Feb. 08, 2018
Document Information [Line Items]
Entity Registrant Name	PROCYON CORP
Entity Central Index Key	812,306
Trading Symbol	pcyn
Current Fiscal Year End Date	--06-30
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		8,077,388
Document Type	10-Q
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Amendment Flag	false

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Dec. 31, 2017	Jun. 30, 2017
CURRENT ASSETS
Cash	$ 71,484	$ 173,173
Certificates of Deposit, plus accrued interest	153,089	102,141
Accounts Receivable, less allowance for doubtful accounts of $566 and $1,001 respectively.	314,634	391,539
Inventories	606,217	506,719
Prepaid Expenses	251,638	175,206
TOTAL CURRENT ASSETS	1,397,062	1,348,778
CERTIFICATES OF DEPOSIT, PLUS ACCRUED INTEREST		111,669
PROPERTY AND EQUIPMENT, NET	499,681	513,779
OTHER ASSETS
Deposits	4,192	4,192
Inventories	70,655	70,655
Intangible Asset	17,000	17,000
Deferred Tax Asset, net valuation allowance of $108,150 and $0, respectively	258,297	663,738
	350,144	755,585
TOTAL ASSETS	2,246,887	2,729,811
CURRENT LIABILITIES
Accounts Payable	148,459	120,584
Capital Lease Liability	1,894	3,788
Accrued Expenses	175,453	315,829
TOTAL CURRENT LIABILITIES	325,806	440,201
CAPITAL LEASE LIABILITY	2,110	2,110
COMMITMENTS AND CONTINGENCIES (NOTE I)
STOCKHOLDERS' EQUITY
Preferred Stock
Common Stock, no par value, 80,000,000 shares authorized; 8,077,388 shares issued and outstanding.	4,434,766	4,434,766
Paid-in Capital	15,885	15,885
Accumulated Deficit	(2,668,540)	(2,300,011)
TOTAL STOCKHOLDERS' EQUITY	1,918,971	2,287,500
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	2,246,887	2,729,811
Convertible Preferred Stock [Member]
STOCKHOLDERS' EQUITY
Preferred Stock	$ 136,860	$ 136,860

Consolidated Balance Sheets (C3

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ / shares in Thousands	Dec. 31, 2017	Jun. 30, 2017
Accounts Receivable, allowance for doubtful accounts	$ 566	$ 1,001
Valuation allowance
Preferred stock, authorized (in shares)	496,000,000	496,000,000
Preferred stock, issued (in shares)	0	0
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock, authorized (in shares)	80,000,000	80,000,000
Common stock, issued (in shares)	8,077,388	8,077,388
Common stock, outstanding (in shares)	8,077,388	8,077,388
Convertible Preferred Stock [Member]
Preferred stock, authorized (in shares)	4,000,000	4,000,000
Preferred stock, issued (in shares)	194,100	194,100
Preferred stock, no par value (in dollars per share)	$ 0	$ 0
Preferred stock, outstanding (in shares)	194,100	194,100

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
NET SALES	$ 1,017,779	$ 1,039,835	$ 1,848,850	$ 1,919,568
COST OF SALES	272,904	312,861	495,732	569,653
GROSS PROFIT	744,875	726,974	1,353,118	1,349,915
OPERATING EXPENSES
Salaries and Benefits	397,645	402,989	729,085	741,253
Selling, General and Administrative	325,807	285,338	587,584	521,128
	723,452	688,327	1,316,669	1,262,381
INCOME / (LOSS) FROM OPERATIONS	21,423	38,647	36,449	87,534
OTHER INCOME (EXPENSE)
Interest Expense		(1,081)		(2,811)
Interest Income	193	396	462	1,166
	193	(685)	462	(1,645)
INCOME / (LOSS) BEFORE INCOME TAXES	21,616	37,962	36,911	85,889
INCOME TAX (EXPENSE) / BENEFIT	(398,011)	(15,634)	(405,441)	(34,678)
NET INCOME / (LOSS)	(376,395)	22,328	(368,530)	51,211
Dividend requirements on preferred stock	(4,427)	(4,853)	(8,855)	(9,705)
Basic net income (loss) available to common shares	$ (380,822)	$ 17,475	$ (377,385)	$ 41,506
Basic net income (loss) per common share (in dollars per share)	$ (0.05)	$ 0	$ (0.05)	$ 0.01
Weighted average number of common shares outstanding (in shares)	8,077,388	8,060,388	8,077,388	8,060,388
Diluted net income (loss) per common share (in dollars per share)	$ (0.05)	$ 0	$ (0.05)	$ 0.01
Weighted average number of common shares outstanding, diluted (in shares)	8,077,388	8,264,488	8,077,388	8,274,488

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net (Loss) / Income	$ (368,530)	$ 51,211
Adjustments to reconcile net (loss) / income to net cash provided by (used in) operating activities:
Depreciation	23,472	22,421
Deferred Income Taxes	405,441	34,678
Decrease (increase) in:
Accounts Receivable	76,905	229,773
Other Receivables		75,000
Inventory	(99,498)	183,928
Prepaid Expenses	(76,432)	(66,393)
Increase (decrease) in:
Accounts Payable	27,877	(235,003)
Accrued Expenses	(140,375)	(147,088)
NET CASH (USED IN) / PROVIDED BY OPERATING ACTIVITIES	(151,140)	148,527
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of property & equipment	(9,376)	(6,162)
NET CASH (USED IN) INVESTING ACTIVITIES	(9,376)	(6,162)
CASH FLOW FROM FINANCING ACTIVITIES
Redemption of CD	60,721	79,194
Capital Lease Liability payments	(1,894)	(1,894)
Repayment of Line of Credit		(125,000)
NET CASH PROVIDED BY / (USED IN) FINANCING ACTIVITIES	58,827	(47,700)
NET CHANGE IN CASH	(101,689)	94,665
CASH AT BEGINNING OF PERIOD	173,173	59,173
CASH AT END OF PERIOD	71,484	153,838
SUPPLEMENTAL DISCLOSURES
Interest Paid		2,811
Taxes Paid

Note A - Summary of Accounting

Note A - Summary of Accounting Policies	6 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Significant Accounting Policies [Text Block]	NOTE A - SUMMARY OF ACCOUNTING POLICIES The interim consolidated financial statements included herein have been prepared by the Company without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in the financial statements prepared in accordance with generally accepted accounting principles ("GAAP") have been condensed or omitted as allowed by such rules and regulations. The Company believes that the disclosures are adequate to make the information presented not June 30, 2017. not may Mana gement of the Company has prepared the accompanying unaudited condensed consolidated financial statements prepared in conformity with generally accepted accounting principles, which require the use of management estimates, contain all adjustments (including normal recurring adjustments) necessary to present fairly the operations and cash flows for the period presented and to make the financial statements not STOCK- BASED COMPENSATION Stock based compensation is accounted for in accordance with Topic 718 718, 718 December 2009, On December 31, 2017, 65,000 options to purchase shares of our common stock. The fair value of a stock option is determined using the Black-Scholes option-pricing model, which values based on the stock price at the grant date, the expected life of the option, the estimated volatility of the stock, expected dividend payments, and the risk-free interest rate over the life of the option. There were no December 31, 2017. The Black-Scholes option valuation model was developed for estimating the fair value of traded options that have no not not EARN INGS PER SHARE Ba sic earnings per share (EPS) is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that would occur if dilutive securities such as stock options and other contracts to issue Common Stock were exercised or converted into Common Stock or resulted in the issuance of Common Stock that then shared in earnings. We use the treasury stock method to compute potential common shares from stock options and the as-if-converted method to compute potential common shares from Preferred Stock. F or the six December 31, 2017,

Note B - Inventories

Note B - Inventories	6 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Inventory Disclosure [Text Block]	NOTE B - INVENTORIES I nventories consisted of the following: December 31, 2017 J une 30, 2017 F inished Goods $ 484,413 $ 384,350 Raw Materials 192,459 193,024 $ 676,872 $ 577,374 At December 31, 2017 June 30, 2017, $70,655 not one

Note C - Stockholders' Equity

Note C - Stockholders' Equity	6 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	NOTE C - STOCKHO LDERS' EQUITY During January 1995, 4,000,000 $.10 December 31, 2017, no $366,281 December 31, 2017. Holders of the Preferred Stock have the right to convert their shares of Preferred Stock into an equal number of shares of Common Stock of the Company. In addition, Preferred Stock holders have the right to vote the number of shares into which their shares are convertible into Common Stock. Such preferred shares will automatically convert into one $1,000,000, $1 no

Note D - Income Taxes and Avail

Note D - Income Taxes and Available Carryforward	6 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Income Tax Disclosure [Text Block]	NOTE D - INCOME TAXES AND AVAILABLE CARRYFORWARD As of December 31, 2017, yforwards for federal income tax purposes of approximately $1,695,000. through the year 2035. 382 nternal Revenue Code. The components of the provision for income tax expense attributable to continuing operations are as follows: Six Months 12/31/2017 Six Months 12/31/2016 Current F ederal $ 0 $ 0 State 0 0 $ 0 $ 0 Deferred F ederal $ (355,330 ) $ (29,610 ) State (50,111 ) (5,068 ) $ (405,441 ) $ (34,678 ) Total Income Tax (Expense) $ (405,441 ) $ (34,678 ) Deferred income taxes reflect the net tax effects of the temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax assets and liabilities are as follows: N on-Current Deferred tax assets NOL and contribution carryforwards $ 361,755 Accrued compensated absences 7,153 Allowance for doubtful accounts 181 Total deferred tax assets 369,089 Deferred tax (liabilities) Excess of tax over book depreciation (2,642 ) Total deferred tax (liabilities) (2,642 ) Total deferred tax asset $ 366,447 Valuation Allowance $ (108,150 ) Net deferred tax asset $ 258,297 The chan ge in valuation allowance is as follows: December 31, 2017 $ (108,150 ) J une 30, 2017 0 $ (108,150 ) Mana gement believes it is more likely than not $338,000 not $108,150 During the six December 31, 2017, 35% 21%, December 22, 2017. 28.06%. first six $282,782 six December 31, 2017 The accounting for the effects of the rate change on deferred tax balances is complete and no I ncome taxes for the six December 31, 2017 2016 32.01% 37.63%, Six Months Six Months December 31, 2016 December 31, 2017 Expected (provision) at US statutory rate $ (10,356 ) $ (29,202 ) State income tax net of federal (provision) (1,461 ) (3,118 ) Nondeductible Expense (2,692 ) (2,358 ) Change in valuation allowance $ (108,150 ) - Effect of remeasurement due to tax reform $ (282,782 ) - Income Tax (Expense) $ (405,441 ) $ (34,678 ) The earliest tax year still subject to examination by a major taxing jurisdiction is fiscal year end June 30, 2015. The Company performed a review of its uncertain tax positions in accordance with Accounting Standards Codification ASC 740 10 that has not no no

Note E - Line of Credit

Note E - Line of Credit	6 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Debt Disclosure [Text Block]	NOTE E - LINE OF CREDIT The Company has a $250,000, $676,872 $314,634. April. December 31, 2017 June 30, 2017, $0

Note F - Related Party Transact

Note F - Related Party Transactions	6 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	NOTE F - RELATED PARTY TRANSACTIONS Our Chairman of the Board , Regina W. Anderson, guarantees a $250,000

Note G - Subsequent Events

Note G - Subsequent Events	6 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
Subsequent Events [Text Block]	NOTE G - SUBSEQUENT EVENTS W e have evaluated subsequent events through February 12, 2018,

Note H - Recent Accounting Pron

Note H - Recent Accounting Pronouncements	6 Months Ended
	Dec. 31, 2017
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	NOTE H - RECENT ACCOUNT ING PRONOUNCEMENTS I n May 2017, No. 2017 09, 718 June 30, 2019 No. 2017 09 I n February 2016, No. 2016 02, not July 1, 2019, No. 2016 02 On November 20, 2015, No. 2015 17, 740 one No. 2015 17 December 15, 2016, applied this standard on a retrospective basis and the balance sheet at June 30, 2017, $242,841 $420,897, $663,738. On May 28, 2014, No. 2014 09, 606 December 15, 2017,

Significant Accounting Policies

Significant Accounting Policies (Policies)	6 Months Ended
	Dec. 31, 2017
Accounting Policies [Abstract]
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]	STOCK- BASED COMPENSATION Stock based compensation is accounted for in accordance with Topic 718 718, 718 December 2009, On December 31, 2017, 65,000 options to purchase shares of our common stock. The fair value of a stock option is determined using the Black-Scholes option-pricing model, which values based on the stock price at the grant date, the expected life of the option, the estimated volatility of the stock, expected dividend payments, and the risk-free interest rate over the life of the option. There were no December 31, 2017. The Black-Scholes option valuation model was developed for estimating the fair value of traded options that have no not not
Earnings Per Share, Policy [Policy Text Block]	EARN INGS PER SHARE Ba sic earnings per share (EPS) is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that would occur if dilutive securities such as stock options and other contracts to issue Common Stock were exercised or converted into Common Stock or resulted in the issuance of Common Stock that then shared in earnings. We use the treasury stock method to compute potential common shares from stock options and the as-if-converted method to compute potential common shares from Preferred Stock. F or the six December 31, 2017,

Note B - Inventories (Tables)

Note B - Inventories (Tables)	6 Months Ended
	Dec. 31, 2017
Notes Tables
Schedule of Inventory, Current and Noncorrent [Table Text Block]	I nventories consisted of the following: December 31, 2017 J une 30, 2017 F inished Goods $ 484,413 $ 384,350 Raw Materials 192,459 193,024 $ 676,872 $ 577,374

Note D - Income Taxes and Ava16

Note D - Income Taxes and Available Carryforward (Tables)	6 Months Ended
	Dec. 31, 2017
Notes Tables
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	Six Months 12/31/2017 Six Months 12/31/2016 Current F ederal $ 0 $ 0 State 0 0 $ 0 $ 0 Deferred F ederal $ (355,330 ) $ (29,610 ) State (50,111 ) (5,068 ) $ (405,441 ) $ (34,678 ) Total Income Tax (Expense) $ (405,441 ) $ (34,678 )
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]	N on-Current Deferred tax assets NOL and contribution carryforwards $ 361,755 Accrued compensated absences 7,153 Allowance for doubtful accounts 181 Total deferred tax assets 369,089 Deferred tax (liabilities) Excess of tax over book depreciation (2,642 ) Total deferred tax (liabilities) (2,642 ) Total deferred tax asset $ 366,447 Valuation Allowance $ (108,150 ) Net deferred tax asset $ 258,297 The chan ge in valuation allowance is as follows: December 31, 2017 $ (108,150 ) J une 30, 2017 0 $ (108,150 )
Comprehensive Income (Loss) [Table Text Block]	Six Months Six Months December 31, 2016 December 31, 2017 Expected (provision) at US statutory rate $ (10,356 ) $ (29,202 ) State income tax net of federal (provision) (1,461 ) (3,118 ) Nondeductible Expense (2,692 ) (2,358 ) Change in valuation allowance $ (108,150 ) - Effect of remeasurement due to tax reform $ (282,782 ) - Income Tax (Expense) $ (405,441 ) $ (34,678 )

Note A - Summary of Accountin17

Note A - Summary of Accounting Policies (Details Textual)	3 Months Ended
	Dec. 31, 2017shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	65,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	0

Note B - Inventories (Details T

Note B - Inventories (Details Textual) - USD ($)	Dec. 31, 2017	Jun. 30, 2017
Inventory, Noncurrent	$ 70,655	$ 70,655

Note B - Inventories - Inventor

Note B - Inventories - Inventories (Details) - USD ($)	Dec. 31, 2017	Jun. 30, 2017
Finished Goods	$ 484,413	$ 384,350
Raw Materials	192,459	193,024
	$ 676,872	$ 577,374

Note C - Stockholders' Equity (

Note C - Stockholders' Equity (Details Textual) - USD ($)	1 Months Ended	6 Months Ended
	Jan. 31, 1995	Dec. 31, 2017	Jun. 30, 2017
Preferred Stock, Shares Authorized		496,000,000	496,000,000
Conversion of Stock, Shares Converted		0
Minimum [Member]
Proceeds From Public Offering Required for Mandatory Conversion		$ 1,000,000
Share Price		$ 1
Convertible Preferred Stock [Member]
Preferred Stock, Shares Authorized	4,000,000	4,000,000	4,000,000
Preferred Stock, Dividend Rate, Per-Dollar-Amount	$ 0.10
Dividends, Preferred Stock		$ 0
Preferred Stock, Amount of Preferred Dividends in Arrears		$ 366,281
Convertible Preferred Stock, Shares Issued upon Conversion		1

Note D - Income Taxes and Ava21

Note D - Income Taxes and Available Carryforward (Details Textual) - USD ($)	6 Months Ended			12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017	Dec. 31, 2016	Jun. 30, 2018
Operating Loss Carryforwards		$ 1,695,000
Operating Loss Carryforwards, Portion Estimated to Expire before Utilization		338,000
Operating Loss Carryforwards, Valuation Allowance		$ 108,150
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent		35.00%
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability		$ 282,782
Effective Income Tax Rate Reconciliation, Percent		32.01%	37.63%
Unrecognized Tax Benefits		$ 0
Scenario, Forecast [Member]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%			28.06%

Note D - Income Taxes and Ava22

Note D - Income Taxes and Available Carryforward - Provision for Income Tax Expense (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Current
Federal			$ 0	$ 0
State			0	0
			0	0
Deferred
Federal			355,330	29,610
State			50,111	5,068
			(405,441)	(34,678)
Total Income Tax (Expense)	$ (398,011)	$ (15,634)	$ (405,441)	$ (34,678)

Note D - Income Taxes and Ava23

Note D - Income Taxes and Available Carryforward - Deferred Tax Assets and Liabilities (Details) - USD ($)	6 Months Ended
	Dec. 31, 2017	Jun. 30, 2017
Deferred tax assets
NOL and contribution carryforwards	$ 361,755
Accrued compensated absences	7,153
Allowance for doubtful accounts	181
Total deferred tax assets	369,089
Deferred tax (liabilities)
Excess of tax over book depreciation	(2,642)
Total deferred tax (liabilities)	(2,642)
Total deferred tax asset	366,447
Valuation Allowance	(108,150)	$ 0
Net deferred tax asset	258,297
The change in valuation allowance is as follows:
Valuation Allowance	(108,150)	$ 0
	$ (108,150)

Note D - Income Taxes and Ava24

Note D - Income Taxes and Available Carryforward - Income Taxes Reconciliation (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Expected (provision) at US statutory rate			$ (10,356)	$ (29,202)
State income tax net of federal (provision)			(1,461)	(3,118)
Nondeductible Expense			(2,692)	(2,358)
Change in valuation allowance			(108,150)
Effect of remeasurement due to tax reform			(282,782)
Total Income Tax (Expense)	$ (398,011)	$ (15,634)	$ (405,441)	$ (34,678)

Note E - Line of Credit (Detail

Note E - Line of Credit (Details Textual) - USD ($)	Dec. 31, 2017	Jun. 30, 2017
Line of Credit Facility, Maximum Borrowing Capacity	$ 250,000
Long-term Line of Credit	0	$ 0
Inventory [Member]
Debt Instrument, Collateral Amount	676,872
Net Accounts Receivable Assets [Member]
Debt Instrument, Collateral Amount	$ 314,634

Note F - Related Party Transa26

Note F - Related Party Transactions (Details Textual)	Dec. 31, 2017USD ($)
Line of Credit Facility, Maximum Borrowing Capacity	$ 250,000
Chief Executive Officer [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 250,000

Note H - Recent Accounting Pr27

Note H - Recent Accounting Pronouncements (Details Textual) - Accounting Standards Update 2015-07 [Member]	Jun. 30, 2017USD ($)
Deferred Tax Assets, Net, Noncurrent	$ 663,738
Scenario, Previously Reported [Member]
Deferred Tax Assets, Net, Current	242,841
Deferred Tax Assets, Net, Noncurrent	$ 420,897