Procyon (PCYN) 10-Q 15 May 18 2018 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Mar. 31, 2018	May 10, 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	Mar. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Mar. 31, 2018	Jun. 30, 2017
CURRENT ASSETS
Cash	$ 166,578	$ 173,173
Certificates of Deposit, plus accrued interest	153,259	102,141
Accounts Receivable, less allowance for doubtful accounts of $2,855 and $1,001 respectively	359,071	391,539
Inventories	580,275	506,719
Prepaid Expenses	295,869	175,206
TOTAL CURRENT ASSETS	1,555,052	1,348,778
CERTIFICATES OF DEPOSIT, PLUS ACCRUED INTEREST		111,669
PROPERTY AND EQUIPMENT, NET	487,779	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	234,364	663,738
	326,211	755,585
TOTAL ASSETS	2,369,042	2,729,811
CURRENT LIABILITIES
Accounts Payable	187,513	120,584
Capital Lease Liability	3,057	3,788
Accrued Expenses	200,578	315,829
TOTAL CURRENT LIABILITIES	391,148	440,201
CAPITAL LEASE LIABILITY		2,110
COMMITMENTS AND CONTINGENCIES (NOTE G)
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	(2,609,617)	(2,300,011)
TOTAL STOCKHOLDERS' EQUITY	1,977,894	2,287,500
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	2,369,042	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	Mar. 31, 2018	Jun. 30, 2017
Accounts receivable, allowance for doubtful accounts	$ 2,855	$ 1,001
Valuation allowance	$ 108,150	$ 0
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)	177,100	177,100
Preferred stock, no par value (in dollars per share)	$ 0	$ 0
Preferred stock, outstanding (in shares)	177,100	177,100

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
NET SALES	$ 1,107,018	$ 928,636	$ 2,955,868	$ 2,848,204
COST OF SALES	297,889	259,591	793,622	829,244
GROSS PROFIT	809,129	669,045	2,162,246	2,018,960
OPERATING EXPENSES
Salaries and Benefits	390,860	374,153	1,119,944	1,115,406
Selling, General and Administrative	335,590	309,836	923,174	830,964
	726,450	683,989	2,043,118	1,946,370
INCOME / (LOSS) FROM OPERATIONS	82,679	(14,944)	119,128	72,590
OTHER INCOME (EXPENSE)
Interest Expense		(36)		(2,846)
Interest Income	178	339	639	1,505
	178	303	639	(1,341)
INCOME / (LOSS) BEFORE INCOME TAXES	82,857	(14,641)	119,767	71,249
INCOME TAX (EXPENSE) / BENEFIT	(23,933)	3,979	(429,374)	(30,700)
NET INCOME / (LOSS)	58,924	(10,662)	(309,607)	40,549
Dividend requirements on preferred stock	(4,428)	(4,853)	(13,283)	(14,558)
Basic net income (loss) available to common shares	$ 54,496	$ (15,515)	$ (322,890)	$ 25,991
Basic net income (loss) per common share (in dollars per share)	$ 0.01	$ 0	$ (0.04)	$ 0
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)	$ 0.01	$ 0	$ (0.04)	$ 0
Weighted average number of common shares outstanding, diluted (in shares)	8,300,669	8,060,388	8,077,388	8,284,488

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net (Loss) / Income	$ (309,607)	$ 40,549
Adjustments to reconcile net (loss) / income to net cash (used in) / provided by operating activities:
Depreciation	35,375	33,877
Increase in Allowance for Doubtful Accounts	1,854	10,632
Deferred Income Taxes	429,374	30,700
Accrued Interest on Certificates of Deposit		(335)
Decrease (increase) in:
Accounts Receivable	30,614	174,262
Other Receivables		150,000
Inventory	(73,556)	55,385
Prepaid Expenses	(120,663)	(63,391)
Increase (decrease) in:
Accounts Payable	66,931	(211,032)
Accrued Expenses	(115,251)	(134,296)
NET CASH (USED IN) / PROVIDED BY OPERATING ACTIVITIES	(54,929)	86,351
CASH FLOW FROM INVESTING ACTIVITIES
Redemption of CD	60,551	79,194
Purchase of property & equipment	(9,376)	(8,995)
NET CASH PROVIDED BY INVESTING ACTIVITIES	51,175	70,199
CASH FLOW FROM FINANCING ACTIVITIES
Capital Lease Liability payments	(2,841)	(2,841)
Repayment of Line of Credit		(125,000)
NET CASH (USED IN) FINANCING ACTIVITIES	(2,841)	(127,841)
NET CHANGE IN CASH	(6,595)	28,709
CASH AT BEGINNING OF PERIOD	173,173	59,173
CASH AT END OF PERIOD	166,578	87,882
SUPPLEMENTAL DISCLOSURES
Interest Paid		2,846
Taxes Paid

Note A - Summary of Accounting

Note A - Summary of Accounting Policies	9 Months Ended
	Mar. 31, 2018
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 Management 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 March 31, 2018, 65,000 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. There were no nine March 31, 2018. The Black-Scholes option valuation model was developed for estimating the fair value of traded options that have no not not EARNINGS PER SHARE Basic 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. For the nine March 31, 2018,

Note B - Inventories

Note B - Inventories	9 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Inventory Disclosure [Text Block]	NOTE B - INVENTORIES Inventories consisted of the following: March 31, 2018 June 30, 2017 Finished Goods $ 460,975 $ 384,350 Raw Materials 189,955 193,024 $ 650,930 $ 577,374 At March 31, 2018 June 30, 2017, $70,655 not one

Note C - Stockholders' Equity

Note C - Stockholders' Equity	9 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	NOTE C - STOCKHOLDERS' EQUITY During January 1995, 4,000,000 $.10 March 31, 2018, no $370,709 March 31, 2018. 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	9 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Income Tax Disclosure [Text Block]	NOTE D - INCOME TAXES AND AVAILABLE CARRYFORWARD As of March 31, 2018, $1,560,000. 2035. 382 The components of the (provision) for income tax expense attributable to continuing operations are as follows: Nine Months 3/31/2018 Nine Months 3/31/2017 Current Federal $ 0 $ 0 State 0 0 $ 0 $ 0 Deferred Federal $ (376,305 ) $ (26,015 ) State (53,069 ) (4,685 ) $ (429,374 ) $ (30,700 ) Total Income Tax (Expense) $ (429,374 ) $ (30,700 ) 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: Non-Current Deferred tax assets NOL and contribution carryforwards $ 323,759 Accrued compensated absences 8,657 Accrued bonus 9,965 Allowance for doubtful accounts 914 Total deferred tax assets 343,294 Deferred tax (liabilities) Excess of tax over book depreciation (781 ) Total deferred tax (liabilities) (781 ) Total deferred tax asset $ 342,514 Valuation Allowance $ (108,150 ) Net deferred tax asset $ 234,364 The change in valuation allowance is as follows: March 31, 2018 $ (108,150 ) June 30, 2017 0 $ (108,150 ) Management believes it is more likely than not $322,000 not $108,150 During the nine March 31, 2018, 35% 21%, December 22, 2017. 28.06%. first nine $278,999 nine March 31, 2018 The accounting for the effects of the rate change on deferred tax balances is complete and no Income taxes for the nine March 31, 2018 2017 32.01% 37.63%, Nine Months March 31, 2018 Nine Months March 31, 2017 Expected (provision) at US statutory rate $ (33,604 ) $ (24,224 ) State income tax net of federal (provision) (4,740 ) (2,586 ) Nondeductible Expense (3,881 ) (3,890 ) Change in valuation allowance $ (108,150 ) - Effect of remeasurement due to tax reform $ (278,999 ) - Income Tax (Expense) $ (429,374 ) $ (30,700 ) 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 Uncertainty in Income Taxes not no no

Note E - Line of Credit

Note E - Line of Credit	9 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Debt Disclosure [Text Block]	NOTE E - LINE OF CREDIT The Company had a $250,000, $650,930 $359,071. April 2018.

Note F - Related Party Transact

Note F - Related Party Transactions	9 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	NOTE F - RELATED PARTY TRANSACTIONS Our Chairman of the Board , Regina W. Anderson, guaranteed a $250,000 April 2018.

Note G - Subsequent Events

Note G - Subsequent Events	9 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Subsequent Events [Text Block]	NOTE G - SUBSEQUENT EVENTS We have evaluated subsequent events through May 15, 2018,

Note H - Recent Accounting Pron

Note H - Recent Accounting Pronouncements	9 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	NOTE H - RECENT ACCOUNTING PRONOUNCEMENTS In May 2017, No. 2017 09, 718 June 30, 2019 No. 2017 09 On June 16, 2016, 2016 13, 326 December 15, 2019, December 15, 2018. No. 2016 13 In 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, 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)	9 Months Ended
	Mar. 31, 2018
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 March 31, 2018, 65,000 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. There were no nine March 31, 2018. 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]	EARNINGS PER SHARE Basic 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. For the nine March 31, 2018,

Note B - Inventories (Tables)

Note B - Inventories (Tables)	9 Months Ended
	Mar. 31, 2018
Notes Tables
Schedule of Inventory, Current and Noncorrent [Table Text Block]	Inventories consisted of the following: March 31, 2018 June 30, 2017 Finished Goods $ 460,975 $ 384,350 Raw Materials 189,955 193,024 $ 650,930 $ 577,374

Note D - Income Taxes and Ava16

Note D - Income Taxes and Available Carryforward (Tables)	9 Months Ended
	Mar. 31, 2018
Notes Tables
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	Nine Months 3/31/2018 Nine Months 3/31/2017 Current Federal $ 0 $ 0 State 0 0 $ 0 $ 0 Deferred Federal $ (376,305 ) $ (26,015 ) State (53,069 ) (4,685 ) $ (429,374 ) $ (30,700 ) Total Income Tax (Expense) $ (429,374 ) $ (30,700 )
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]	Non-Current Deferred tax assets NOL and contribution carryforwards $ 323,759 Accrued compensated absences 8,657 Accrued bonus 9,965 Allowance for doubtful accounts 914 Total deferred tax assets 343,294 Deferred tax (liabilities) Excess of tax over book depreciation (781 ) Total deferred tax (liabilities) (781 ) Total deferred tax asset $ 342,514 Valuation Allowance $ (108,150 ) Net deferred tax asset $ 234,364 The change in valuation allowance is as follows: March 31, 2018 $ (108,150 ) June 30, 2017 0 $ (108,150 )
Comprehensive Income (Loss) [Table Text Block]	Nine Months March 31, 2018 Nine Months March 31, 2017 Expected (provision) at US statutory rate $ (33,604 ) $ (24,224 ) State income tax net of federal (provision) (4,740 ) (2,586 ) Nondeductible Expense (3,881 ) (3,890 ) Change in valuation allowance $ (108,150 ) - Effect of remeasurement due to tax reform $ (278,999 ) - Income Tax (Expense) $ (429,374 ) $ (30,700 )

Note A - Summary of Accountin17

Note A - Summary of Accounting Policies (Details Textual) - shares	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance		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 ($)	Mar. 31, 2018	Jun. 30, 2017
Inventory, Noncurrent, Total	$ 70,655	$ 70,655

Note B - Inventories - Inventor

Note B - Inventories - Inventories (Details) - USD ($)	Mar. 31, 2018	Jun. 30, 2017
Finished Goods	$ 460,975	$ 384,350
Raw Materials	189,955	193,024
	$ 650,930	$ 577,374

Note C - Stockholders' Equity (

Note C - Stockholders' Equity (Details Textual) - USD ($)	1 Months Ended	9 Months Ended
	Jan. 31, 1995	Mar. 31, 2018	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, Total		$ 0
Preferred Stock, Amount of Preferred Dividends in Arrears		$ 370,709
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	Mar. 31, 2018	Mar. 31, 2017
Operating Loss Carryforwards, Total						$ 1,560,000
Operating Loss Carryforwards, Portion Estimated to Expire before Utilization					$ 322,000
Operating Loss Carryforwards, Valuation Allowance, Total					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		$ 278,999
Effective Income Tax Rate Reconciliation, Percent, Total		32.01%	37.63%
Unrecognized Tax Benefits, Ending Balance					$ 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		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2016	Mar. 31, 2018	Mar. 31, 2017
Current
Federal					$ 0	$ 0
State					0	0
					0	0
Deferred
Federal					(376,305)	(26,015)
State					(53,069)	(4,685)
					(429,374)	(30,700)
Total Income Tax (Expense)	$ (23,933)	$ 3,979	$ (429,374)	$ (30,700)	$ (429,374)	$ (30,700)

Note D - Income Taxes and Ava23

Note D - Income Taxes and Available Carryforward - Deferred Tax Assets and Liabilities (Details) - USD ($)	9 Months Ended	12 Months Ended
	Mar. 31, 2018	Jun. 30, 2017
Deferred tax assets
NOL and contribution carryforwards	$ 323,759
Accrued compensated absences	8,657
Accrued bonus	9,965
Allowance for doubtful accounts	914
Total deferred tax assets	343,294
Deferred tax (liabilities)
Excess of tax over book depreciation	(781)
Total deferred tax (liabilities)	(781)
Total deferred tax asset	342,514
Valuation Allowance	(108,150)
Net deferred tax asset	234,364
Change in 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		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2016	Mar. 31, 2018	Mar. 31, 2017
Expected (provision) at US statutory rate			$ (33,604)	$ (24,224)
State income tax net of federal (provision)			(4,740)	(2,586)
Nondeductible Expense			(3,881)	(3,890)
Change in valuation allowance			(108,150)
Effect of remeasurement due to tax reform			(278,999)
Total Income Tax (Expense)	$ (23,933)	$ 3,979	$ (429,374)	$ (30,700)	$ (429,374)	$ (30,700)

Note E - Line of Credit (Detail

Note E - Line of Credit (Details Textual)	Mar. 31, 2018USD ($)
Line of Credit Facility, Maximum Borrowing Capacity	$ 250,000
Inventory [Member]
Debt Instrument, Collateral Amount	650,930
Net Accounts Receivable Assets [Member]
Debt Instrument, Collateral Amount	$ 359,071

Note F - Related Party Transa26

Note F - Related Party Transactions (Details Textual)	Mar. 31, 2018USD ($)
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
Previously Reported [Member]
Deferred Tax Assets, Net, Current	242,841
Deferred Tax Assets, Net, Noncurrent	$ 420,897