ARC Group Worldwide (ARCW) 10-K 26 Sep 17 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Sep. 08, 2017	Jan. 01, 2017
Document and Entity Information
Entity Registrant Name	ARC Group Worldwide, Inc.
Entity Central Index Key	826,326
Document Type	10-K
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 40.8
Entity Common Stock, Shares Outstanding		18,209,485
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Unaudited Condensed Consolidated Statements of Operations
Sales	$ 99,069	$ 94,124
Cost of sales	89,247	77,261
Gross profit	9,822	16,863
Selling, general and administrative	19,263	16,401
Goodwill impairment charges	3,303
(Loss) income from operations	(12,744)	462
Other income (expense) , net	670	171
Interest expense, net	(4,008)	(4,449)
Loss on extinguishment of debt	(723)
Loss before income taxes	(16,805)	(3,816)
Income tax benefit (expense)	2,631	491
Net loss from continuing operations	(14,174)	(3,325)
Gain on sale of subsidiary and income (loss) from discontinued operations, net of tax	4,001	1,119
Net loss	(10,173)	(2,206)
Net income attributable to non-controlling interests:
Continuing operations	(22)	(58)
Discontinued operations	(4)	(50)
Net income attributable to non-controlling interests	(26)	(108)
Net loss attributable to ARC Group Worldwide, Inc.	$ (10,199)	$ (2,314)
Net loss per common share, basic and diluted:
Continuing operations (in dollars per share)	$ (0.78)	$ (0.19)
Discontinued operations (in dollars per share)	0.22	0.06
Attributable to ARC Group Worldwide, Inc. (in dollars per share)	$ (0.56)	$ (0.13)
Weighted average common shares outstanding:
Basic and diluted (in shares)	18,142,719	18,123,883

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Loss
Net loss	$ (10,173)	$ (2,206)
Foreign currency translation adjustment, net	79	52
Comprehensive loss	(10,094)	(2,154)
Comprehensive income attributable to non-controlling interests	(26)	(108)
Comprehensive loss attributable to ARC Group Worldwide, Inc.	$ (10,120)	$ (2,262)

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2017	Jun. 30, 2016
Current assets:
Cash	$ 593	$ 3,620
Accounts receivable, net	10,488	13,677
Inventories, net	14,369	15,500
Deferred income tax assets		498
Prepaid expenses and other current assets	3,152	3,836
Current assets of discontinued operations	1,452	3,505
Total current assets	30,054	40,636
Property and equipment, net	41,349	41,644
Goodwill	6,412	9,715
Intangible assets, net	19,624	23,066
Other	291	28
Long-term assets of discontinued operations	1,893	5,423
Total assets	99,623	120,512
Current liabilities:
Accounts payable	8,681	8,469
Accrued expenses and other current liabilities	3,273	2,458
Deferred revenue	1,165	1,457
Bank borrowings, current portion of long-term debt	1,701	15,648
Capital lease obligations, current portion	1,470	837
Accrued escrow obligations, current portion	1,212	2,842
Current liabilities of discontinued operations	283	989
Total current liabilities	17,785	32,700
Long-term debt, net of current portion	42,822	36,769
Deferred income tax liabilities		803
Capital lease obligations, net of current portion	1,888	1,930
Accrued escrow obligations, net of current portion	1,184	966
Other long-term liabilities	1,017	2,115
Long-term liabilities of discontinued operations	260	686
Total liabilities	64,956	75,969
Commitments and contingencies (Note 13)
Equity:
Preferred stock, $0.001 par value, 2,000,000 shares authorized, no shares issued and outstanding
Common stock, $0.0005 par value, 250,000,000 shares authorized; 18,180,027 shares issued and 18,171,626 shares issued and outstanding at June 30, 2017, and 18,803,910 shares issued and 18,795,509 shares issued and outstanding at June 30, 2016	10	10
Treasury stock, at cost; 8,401 shares at June 30, 2017 and June 30, 2016	(94)	(94)
Additional paid-in capital	31,109	29,702
Retained earnings	3,569	13,771
Accumulated other comprehensive income (loss)	73	(6)
Total ARC Group Worldwide, Inc. stockholders' equity	34,667	43,383
Non-controlling interest	0	1,160
Total equity	34,667	44,543
Total liabilities and equity	$ 99,623	$ 120,512

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2017	Jun. 30, 2016
Unaudited Condensed Consolidated Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.0005	$ 0.0005
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	18,180,027	18,803,910
Common stock, shares outstanding	18,171,626	18,795,509
Treasury stock, at cost, shares	8,401	8,401

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Treasury Stock	Additional paid-in capital	Retained earnings	Accumulated other comprehensive income (loss)	Non-controlling interest	Total
Balance at Jun. 30, 2015	$ 5	$ (94)	$ 29,751	$ 15,931	$ (58)	$ 1,206	$ 46,741
Balance (in shares) at Jun. 30, 2015	18,539,000	(8,000)
Increase (Decrease) in Stockholders' Equity
Net (loss) income				(2,314)		108	(2,206)
Purchase of membership interest			(195)	154		(154)	(195)
Cancellation of escrow shares (in shares)	(234,000)
Share-based compensation expense			177				177
Shares issued to escrow in connection with previous acquisition (in shares)	499,000
Offering costs			(26)				(26)
Currency translation adjustment					52		52
Other	$ 5		(5)
Balance at Jun. 30, 2016	$ 10	$ (94)	29,702	13,771	(6)	1,160	$ 44,543
Balance (in shares) at Jun. 30, 2016	18,804,000	(8,000)					18,795,509
Increase (Decrease) in Stockholders' Equity
Net (loss) income				(10,199)		26	$ (10,173)
Purchase of membership interest			557			(793)	(236)
Payment of distributions to membership interests						$ (393)	(393)
Cancellation of escrow shares (in shares)	(672,000)
Share-based compensation expense			752				752
Shares issued under employee stock purchase plan			98				98
Shares issued under employee stock purchase plan (in shares)	48,000
Currency translation adjustment					79		79
Other				(3)			(3)
Balance at Jun. 30, 2017	$ 10	$ (94)	$ 31,109	$ 3,569	$ 73		$ 34,667
Balance (in shares) at Jun. 30, 2017	18,180,000	(8,000)					18,171,626

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net loss	$ (10,173)	$ (2,206)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	9,930	9,529
Share-based compensation expense	752	177
Loss on disposal of assets	293
Gain on sale of subsidiaries	(5,485)
Goodwill impairment charges	3,303
Bad debt expense and other	173	98
Deferred income taxes	(407)	565
Changes in working capital:
Accounts receivable	2,597	400
Inventory	1,120	(1,227)
Prepaid expenses and other assets	480	(1,621)
Accounts payable	1,068	1,708
Accrued expenses and other current liabilities	(509)	(1,423)
Deferred revenue	(292)	466
Net cash provided by operating activities	2,850	6,466
Cash flows from investing activities:
Purchases of property and equipment	(6,641)	(2,633)
Proceeds from sale of subsidiary and other assets	10,538	8
Net cash provided by (used in) investing activities	3,897	(2,625)
Cash flows from financing activities:
Proceeds from debt issuance	118,124	5,543
Repayments of long-term debt and capital lease obligations	(127,468)	(10,542)
Payment of distributions to non-controlling membership interests from the sale of subsidiary	(453)
Purchase of non-controlling membership interests	(235)
Issuance of common stock under employee stock purchase plan	98
Net cash used in financing activities	(9,934)	(4,999)
Effect of exchange rates on cash	160	(43)
Net decrease in cash	(3,027)	(1,201)
Cash, beginning of year	3,620	4,821
Cash, end of year	593	3,620
Supplemental disclosures of cash flow information:
Cash paid for interest	3,303	4,058
Cash paid for income taxes, net of refunds	$ (849)	$ 599

Nature of Operations and Basis

Nature of Operations and Basis of Presentation	12 Months Ended
	Jun. 30, 2017
Nature of Operations and Basis of Presentation
Nature of Operations and Basis of Presentation	NOTE 1 – Nature of Operations and Basis of Presentation Nature of Operations ARC Group Worldwide, Inc. (the “Company” or “ARC”) is a global advanced manufacturer offering a full suite of products and services to our customers, with specific expertise in metal injection molding (“MIM”) and metal 3D printing (also referred to herein as additive manufacturing or “AM”). To further advance and support these core capabilities, the Company also offers complementary services associated with: (i) precision metal stamping; (ii) traditional and clean room plastic injection molding; and (iii) advanced rapid and conformal tooling. Through its diverse product offering, the Company provides its customers with a holistic prototyping and full-run production solution for both precision metal and plastic fabrication. The Company further differentiates itself from its competitors by providing innovative, custom capabilities, which improve high-precision manufacturing efficiency and speed-to-market for its customers. Basis of Presentation The Company’s fiscal year begins July 1 and ends June 30, and the quarters for interim reporting consist of thirteen weeks; therefore, the quarter end will not always coincide with the date of the calendar month-end. Principles of Consolidation The consolidated financial statements include the amounts of ARC and its controlled subsidiaries. All material intercompany transactions have been eliminated in consolidation.

Significant Accounting Policies

Significant Accounting Policies	12 Months Ended
	Jun. 30, 2017
Significant Accounting Policies
Significant Accounting Policies	NOTE 2 – Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenue and expenses during the reporting period. Due to the inherent uncertainties in making estimates, actual results could differ from those estimates and such differences may be material to the consolidated financial statements. Reclassifications Certain amounts have been reclassified in the prior year financial statements to conform to the current year presentation. Concentration of Credit Risk The Company places its cash with high credit quality financial institutions and does not believe it is exposed to any significant credit risk on cash. At times, such cash amounts may exceed FDIC limits. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the original invoiced amount due from the Company’s customers less an allowance for any potential uncollectible amounts. ARC controls credit risk related to accounts receivable through credit approvals, credit limits and monitoring processes. In making the determination of the appropriate allowance for doubtful accounts, management considers prior experience with customers, analysis of accounts receivable aging reports, changes in customer payment patterns, and historical write-offs. The allowance for doubtful accounts totaled $0.1 million and $0.2 million as of June 30, 2017 and 2016, respectively. The amounts charged to operations and write-offs were immaterial for the periods presented. Inventories Inventories are stated at the lower of average cost using the first-in, first-out (FIFO) method or market. It is the Company’s practice to provide a valuation allowance for inventories to account for actual market pricing deflation and inventory shrinkage. Management actively reviews this inventory to determine that all materials are for products still in production to determine any potential obsolescence issues. Assets and Liabilities Held for Sale and Discontinued Operations Assets to be disposed of that meet all of the criteria to be classified as held for sale are reported at the lower of their carrying amounts or fair values less cost to sell. Assets are not depreciated while they are classified as held for sale. Assets held for sale that have operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the Company’s assets are reported in discontinued operations when it is determined that the operations and cash flows of the assets will be eliminated from the Company’s ongoing operations and the Company will not have any significant continuing involvement in the operations of the assets after the disposal transaction. As the divestitures of Tekna Seal LLC and General Flange & Forge LLC represented a The divestiture of ARC Wireless, LLC did not represent a Property and Equipment Property and equipment are stated at cost or acquisition date fair value less accumulated depreciation. Depreciation is recognized on a straight-line basis over the estimated useful lives of the related assets and is allocated between cost of sales and selling, general and administrative expenses. Major additions and improvements are capitalized, while replacements, maintenance and repairs, which do not improve or extend the life of the respective assets, are expensed as incurred. Assets held under capital leases are included in property and equipment and are recorded at the lower of the net present value of the minimum lease payments or the fair value of the leased asset at the inception of the lease. Amortization expense is computed using the straight-line method over the shorter of the estimated useful lives of the assets or the lease term and is recorded in depreciation and amortization expense. Goodwill, Intangible Assets and Other Long-lived Assets Goodwill is tested for impairment at least annually in June of each fiscal year, or more frequently if a triggering event occurs between impairment testing dates, and the Company is required to record any necessary impairment adjustments. During the fourth quarter of 2017, we performed our annual impairment test of goodwill for all of our reporting units. The Company determined fair values for each of the reporting units using a discounted cash flow methodology. Based on the results of our testing, the carrying values of certain reporting units exceeded their fair values and goodwill was impaired by $3.3 million (see Note 6, Goodwill and Intangible Assets, for more information). There were no other indicators of impairment for the Company’s remaining reporting units. Intangible assets (identified as patents, tradenames, customer relationships, and non-compete agreements) are recorded at fair value at the time of acquisition. Finite-lived intangibles are stated at cost less accumulated amortization. Amortization is recorded using the straight-line method, which approximates the expected pattern of economic benefit, over the estimated lives of the assets. The Company reviews the carrying value of its finite-lived intangible and long-lived tangible assets whenever events or changes in circumstances indicate that the carrying amount of the asset group may not be recoverable. Factors that would require an impairment assessment include, among other things, a significant change in the extent or manner in which an asset is used, a continual decline in the Company's operating performance, or as a result of fundamental changes in a subsidiary's business condition. Recoverability of long-lived assets is measured by comparing their carrying amount to the projected undiscounted cash flows the assets are expected to generate. If such assets are considered to be impaired, the impairment loss recognized, if any, is the amount by which the carrying amount of the finite-lived intangible assets exceeds fair value. There were no impairments of finite-lived intangible or long-lived assets during the years ended June 30, 2017 or 2016. Non-Controlling Interest During the first quarter of fiscal 2016, the Company purchased approximately 1.9% of the outstanding non-controlling membership interests of Tekna Seal LLC. On September 30, 2016, the Company sold Tekna Seal LLC, which included 95.7% owned by the Company and 4.3% held by minority stakeholders (see Note 3, Divestitures, for more information). Effective October 3, 2016, the Company purchased 3.8% of the outstanding non-controlling membership interests of FloMet LLC, increasing the Company’s ownership to 100%. As a result of these transactions, there is no non-controlling interest on the consolidated balance sheet as of June 30, 2017. The Company has recognized the carrying value of the non-controlling interests as a component of equity for the applicable periods presented. In connection with the purchase of the outstanding non-controlling membership interests of FloMet LLC, we entered into a Consent and Agreement with the seller that provides that if there is any sale of FloMet LLC within three years from October 3, 2016, and if such sale price is higher than the sale of the interests by the Seller, the Seller shall receive a proportionate gross-up payment reflecting such higher price. Accrued Expenses As of June 30, 2017 and 2016, accrued expenses that exceeded 5% of current liabilities consisted of approximately $1.9 million and $1.4 million, respectively, of payroll related costs. Fair Value Measurements The carrying value of the Company’s accounts receivable, accounts payable and accrued expenses approximate fair value because of the short maturity of these items. The carrying value of the Company’s debt outstanding approximates fair value as interest rates on these instruments approximate current market rates. Deferred Revenue Deferred revenue consists of customer deposits for the development of molds used in the manufacturing process. As of June 30, 2017 and 2016, deferred revenue was $1.2 million and $1.5 million, respectively. The Company recognizes revenue and the related expenses when the customer approves the mold for production. Accordingly, as of June 30, 2017 and 2016, the Company has incurred costs of $1.2 million and $1.0 million, respectively, related to molds in the process of being developed which have been deferred and are included as part of the total current assets on the accompanying balance sheets. Revenue Recognition Revenue is measured at the fair value of the consideration received or receivable net of sales tax, trade discounts and customer returns. The Company recognizes revenue when the earnings process is complete. This generally occurs when products are shipped to the customer in accordance with the contract or purchase order, ownership and risk of loss have passed to the customer, collectability is reasonably assured, and pricing is fixed and determinable. In instances where title does not pass to the customer upon shipment, the Company recognizes revenue upon delivery or customer acceptance, depending on terms of the sales agreement. Service sales, representing maintenance and engineering activities, are recognized as services are performed. Products are generally shipped free-on-board from our facilities, the customer pays freight costs and assumes all liability. Research and Development Costs Research and development costs are expensed as incurred. The majority of these expenditures consist of salaries for engineering and manufacturing personnel and outside services. For the years ended June 30, 2017 and 2016, the Company incurred $0.5 million and $0.3 million, respectively, for research and development, which is included in selling, general and administrative expenses on the accompanying statements of operations. The Company is generally compensated by customers for items related to process and material development, thereby reducing our research and development costs. Income Taxes The Company accounts for income taxes in accordance with the asset and liability method of computing income taxes. The objective of this method is to establish deferred tax assets and liabilities for any temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled. The Company also provides for the accounting for uncertainty in income taxes recognized in financial statements and the impact of a tax position in the financial statements if that position is more likely than not of being sustained by the taxing authority. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. Interest and penalties related to uncertain tax positions of $0.1 million were recognized during the years ended June 30, 2017 and 2016, respectively. As of June 30, 2017 and 2016, accrued interest and penalties were $0.4 million and $0.3 million, respectively. In general, the tax returns for the years ending June 30, 2014 through 2017 are open to examination by federal and state authorities. Tax years 2003 and forward are open for certain of the Company's subsidiaries due to the carryforward of unutilized net operating losses. Foreign Currency The financial position and results of operations of AFT-Hungary Kft. (“AFT-Hungary”), a wholly owned subsidiary of the Company, are measured using the Euro. Accordingly, all assets and liabilities of AFT-Hungary are translated into U.S. dollars at the currency exchange rates as of the respective balance sheet dates. Revenue and expense items are translated at the average exchange rates prevailing during the period. Resulting translation adjustments, net of applicable deferred income taxes, are recorded in accumulated other comprehensive income. Foreign currency transaction gains and losses are included in other income (expense), net in our consolidated statements of operations. Such gains and losses were not material for any period presented. Accounting Pronouncements Adopted in the Current Period In November 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”). This update requires an entity to classify deferred tax assets and liabilities as non-current within a classified statement of financial position. ASU 2015-17 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2016, but early adoption is permitted. This update may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company adopted the provisions of ASU 2015-17 on a prospective basis as of July 1, 2016; therefore, the prior period was not retrospectively adjusted. The adoption of ASU 2015-17 did not have an impact on our consolidated results of operations or cash flows. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs to ASC Topic 835, Interest - Imputation of Interest (“ASU 2015-03”). ASU 2015-03 requires an entity to present debt issuance costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of debt issuance costs will continue to be reported as interest expense. ASU 2015-03 is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2015. The Company adopted the provisions of ASU 2015-03 on July 1, 2016, which required retroactive application and represented a change in accounting principle. The deferred financing costs of approximately $1.3 million associated with a portion of our outstanding debt, which were previously included in prepaid expenses and other current assets and other assets on the consolidated balance sheet as of June 30, 2016, are reflected as a reduction to the carrying liability of the Company’s outstanding debt. As a result of this change in accounting principle, the consolidated balance sheet as of June 30, 2016 was adjusted as follows (in thousands): June 30, 2016 Previously Effect of Adoption of Reported Accounting Principle As Adjusted Assets: Prepaid expenses and other current assets $ 4,378 $ (429) $ 3,949 Other assets $ 948 $ (920) $ 28 Total assets $ 121,798 $ (1,349) $ 120,449 Liabilities: Bank borrowings, current portion of long-term debt $ 15,909 $ (261) $ 15,648 Long-term debt, net of current portion $ 37,857 $ (1,088) $ 36,769 Total liabilities $ 77,255 $ (1,349) $ 75,906 In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”), that requires management to evaluate whether there are conditions and events that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the financial statements are issued or available to be issued on both an interim and annual basis. Management is required to provide certain footnote disclosures if it concludes that substantial doubt exists or when its plans alleviate substantial doubt about the Company’s ability to continue as a going concern. ASU 2014-15 is effective for all entities for the annual period ending after December 15, 2016, and for annual and interim periods thereafter, with early adoption permitted. The Company adopted ASU 2014-15 as of June 30, 2017, and its adoption did not have any significant impact on the Company’s financial statements. Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses Topic 326 (“ASU 2016-13”), which requires entities to use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowances for losses. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within that year. Early adoption is permitted. The adoption of ASU 2016-03 is not expected to have a material effect on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases: Topic 842 (“ASU 2016-02”), to supersede nearly all existing lease guidance under GAAP. ASU 2016-02 requires the recognition of lease assets and lease liabilities on the balance sheet by lessees for those leases currently classified as operating leases. ASU 2016-02 also requires qualitative disclosures along with specific quantitative disclosures and is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. Entities are required to apply the amendments at the beginning of the earliest period presented using a modified retrospective approach. The Company is evaluating the requirements of this guidance and has not yet determined the impact of the adoption on its consolidated financial position, results of operations and cash flows; however, the Company’s current operating lease commitments are disclosed in Note 13, Commitments and Contingencies. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606 (“ASU 2014-09”), to supersede nearly all existing revenue recognition guidance under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing GAAP including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In August 2015, the FASB issued ASU 2015-14 which defers the effective date for one year beyond the originally specified effective date. ASU 2014-09 is effective in the Company’s first quarter of fiscal 2019 and may transition to the standard using either the full retrospective approach or retrospectively with a cumulative effect of initially applying the amendments recognized at the date of initial application. The Company has completed its initial assessment of the effect of adoption. Based on this initial assessment, the majority of the Company’s revenues will not be affected upon adoption. The Company is still analyzing the disclosure requirements of this new standard.

Divestitures

Divestitures	12 Months Ended
	Jun. 30, 2017
Divestitures
Divestitures	NOTE 3 – Divestitures General Flange & Forge LLC (“GF&F”) During the quarter ended June 30, 2017, the Company decided to divest its flanges and fittings operations, which comprises the Flanges and Fittings segment. The assets and liabilities of the segment are classified as assets and liabilities held for sale in the consolidated balance sheets and the operations are classified as discontinued operations in the consolidated statements of operations. Th e operating results of GF&F classified as discontinued operations are summarized below (in thousands): For the year ended June 30, 2017 June 30, 2016 Sales $ 4,782 $ 4,757 Cost of sales (3,619) (3,480) Gross profit 1,163 1,277 Selling, general and administrative (671) (764) Income from discontinued operations, before income taxes 492 513 Income tax expense on discontinued operations (168) (172) Income from discontinued operations, net of tax $ 324 $ 341 The following table presents the carrying amount as of June 30, 2017 and 2016, of GF&F’s major classes of assets and liabilities held for sale in the consolidated balance sheets (in thousands): June 30, 2017 June 30, 2016 Current assets: Accounts receivable, net $ 687 $ 509 Inventories, net 717 1,085 Prepaid expenses and other current assets 48 67 Total current assets 1,452 1,661 Property and equipment, net 181 184 Goodwill 1,712 1,712 Total assets of discontinued operations $ 3,345 $ 3,557 Current liabilities: Accounts payable and accrued expenses $ 283 $ 266 Total current liabilities 283 266 Other long-term liabilities 260 225 Total liabilities of discontinued operations $ 543 $ 491 On September 15, 2017, the Company sold substantially all of the assets of GF&F to GFFC Holdings, LLC (“GFFC”) for $3.0 million. GFFC is owned in part by Quadrant Management Inc., which is an affiliate of the Company. The sale of GF&F is therefore a related party transaction. The GF&F sale was made pursuant to an industry-wide auction undertaken on behalf of the Company by a registered investment banking organization that managed the sale process with prospective bidders. GFFC entered into the bidding for the GF&F assets only after the first rounds of the auction indicated uncertainty both in respect to the timing for closing any prospective sale and achieving the Company’s valuation objectives. Mr. Alan Quasha, CEO of Quadrant and Chairman of the Company’s Board of Directors, recused himself from any deliberations or voting by the Board of Directors in respect of the sale of the GF&F assets to GFFC. The Board of Directors appointed a special committee consisting solely of independent directors to oversee and negotiate the sale process. The special committee engaged its own independent legal counsel to advise the special committee in respect of the drafting of the asset sale agreement and ancillary transaction documents in accordance with customary terms and conditions for transactions of this type. In this manner, the special committee was able to conclude that the sale price and the terms and conditions for the transaction were superior to any other offers, as well as fair and reasonable to the Company and its shareholders. Tekna Seal LLC On September 30, 2016, the Company sold its non-core subsidiary, Tekna Seal LLC (“Tekna Seal”), to Winchester Electronics Corporation (“Winchester”) pursuant to a Membership Interests Purchase Agreement for $10.5 million in cash. The sale to Winchester covered all of the membership interests of Tekna Seal, including 95.7% owned by the Company and 4.3% held by the Tekna Seal minority stakeholders. The proceeds of the sale, after giving effect to any working capital adjustments, were allocated among the Company and the minority sellers proportionate to their respective ownership of pre-closing membership interests. The Company used the net cash proceeds of the sale to repay principal outstanding under the Company’s revolving loan. During the second quarter of 2017, the Company finalized the working capital adjustments with Winchester and paid the former minority stakeholders. Below is a summary of the gain on sale of discontinued operations (in thousands): Gross proceeds $ 10,538 Less: Property and equipment, net 218 Accounts receivable 918 Inventory 1,268 Other current assets 54 Accounts payable and accrued expenses (936) Working capital adjustment (184) Total net assets disposed 1,338 Goodwill 3,374 Transaction costs 393 Minority interests (393) Payments to minority stakeholders 452 Gain on sale of discontinued operations, before income taxes $ 5,374 In connection with the sale, the Company recorded a pre-tax gain of approximately $5.4 million, which includes a non-cash charge of $3.4 million related to goodwill associated with Tekna Seal, and transaction costs of approximately $0.4 million. The income from operations of Tekna Seal attributable to the Company was approximately $0.1 million and $1.1 million for the years ended June 30, 2017 and 2016, respectively. The consolidated statements of operations for the year ended June 30, 2017 include the results of operations of Tekna Seal through the sale date of September 30, 2016 and the gain on the sale of Tekna Seal. Financial information for discontinued operations for the years ended June 30, 2017 and 2016 is as follows (in thousands): For the year ended June 30, 2017 June 30, 2016 Sales $ 1,277 $ 4,959 Cost of sales (943) (2,935) Gross profit 334 2,024 Selling, general and administrative (242) (846) Income from discontinued operations, before income taxes 92 1,178 Gain on sale of discontinued operations 5,374 — Total income from discontinued operations, before income taxes 5,466 1,178 Income tax expense on discontinued operations (1,789) (400) Income from discontinued operations, net of tax $ 3,677 $ 778 The following table presents the carrying amount as of June 30, 2016, of Tekna Seal’s major classes of assets and liabilities held for sale in the consolidated balance sheet (in thousands): June 30, 2016 Current assets: Accounts receivable, net $ 727 Inventories, net 1,028 Prepaid expenses and other current assets 89 Total current assets 1,844 Property and equipment, net 153 Goodwill 3,374 Total assets of discontinued operations $ 5,371 Current liabilities: Accounts payable and accrued expenses $ 714 Capital lease obligations 9 Total current liabilities 723 Capital lease obligations 19 Other long-term liabilities 442 Total liabilities of discontinued operations $ 1,184 Cash flows from Tekna Seal for the years ended June 30, 2017 and 2016 are combined with the cash flows from operations within each of the categories presented on the consolidated statements of cash flows. There were no significant operating or investing activities from discontinued operations during the years ended June 30, 2017 and 2016. ARC Wireless, LLC On March 31, 2017, the Company divested its wireless business and sold the majority of its assets. The proceeds and related gain were immaterial .

Inventory

Inventory	12 Months Ended
	Jun. 30, 2017
Inventory
Inventory	NOTE 4 – Inventory Inventories consisted of the following (in thousands): June 30, June 30, 2017 2016 Raw materials and supplies $ 5,357 $ 6,299 Work-in-process 7,767 7,505 Finished goods 4,113 4,664 17,237 Reserve for obsolescence (2,151) Inventory of discontinued operations (717) (2,113) $ 14,369 $ 15,500 During the fourth quarter of fiscal year 2017, the Company increased its inventory reserves for excess and obsolete inventory due to a change in business strategy related to the Company’s pricing structure, returned parts that the Company determined could not be profitably re-worked and sold, and increased reserves for slow moving inventory as a result of lower forecasted demand from certain customers, primarily related to firearms industry.

Property and Equipment

Property and Equipment	12 Months Ended
	Jun. 30, 2017
Property and Equipment
Property and Equipment	NOTE 5 – Property and Equipment Property and equipment consisted of the following (in thousands): Depreciable Life June 30, June 30, (in years) 2017 2016 Land — $ 1,264 $ 1,264 Building and improvements 7 - 40 18,125 17,460 Machinery and equipment 3 - 12 40,715 39,350 Office furniture and equipment 3 - 10 1,280 1,050 Construction-in-process — 2,462 1,838 Assets acquired under capital lease 7,235 5,482 71,081 Accumulated depreciation (27,201) (23,018) Accumulated amortization on capital leases (2,350) (1,445) Property and equipment of discontinued operations (181) (337) $ $ Depreciation expense totaled $6.6 million and $6.2 million in the years ended June 30, 2017 and 2016, respectively. In June 2016, the Company entered into an agreement to purchase two 3D printers valued at $2.2 million. As of June 30, 2016, the Company received one 3D printer valued at $0.6 million, which was included in machinery and equipment, and made payments totaling $1.1 million on the second 3D printer, which was included in construction-in-process. Also in June 2016, the Company entered into a Master Lease Agreement with Citizens Asset Finance, Inc. for $1.7 million of secured financing related to these 3D printers. As of June 30, 2016, the Company had received approximately $1.5 million in cash advances under this financing agreement. The lease commenced upon receipt of the second 3D printer, which was in the first quarter of fiscal year 2017.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	12 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets
Goodwill and Intangible Assets	NOTE 6 – Goodwill and Intangible Assets The following table summarizes the activity in the Company's goodwill account by segment during the years ended 2017 and 2016 (in thousands): Precision Components Group 3DMT Group Flanges and Fittings Group Consolidated Balance, June 30, 2015 $ 10,285 $ 2,804 $ 1,712 $ 14,801 Held for sale (3,374) — (1,712) (5,086) Balance, June 30, 2016 6,911 2,804 — 9,715 Adjustments (1) 2,804 (2,804) — — Impairments (2) (3,303) — — (3,303) Balance, June 30, 2017 $ 6,412 $ — $ — $ 6,412 (1) During the fiscal fourth quarter of 2017, the Company revised its business segments, which resulted in transferring the goodwill related to its ATC subsidiary from the 3DMT Group to the Precision Components Group. (2) The Company reviewed its future projections during the fourth quarter of 2017. By utilization of a discounted cash flow analysis, which takes into account projected revenues and expenses, the Company determined that the goodwill of ATC and Kecy were impaired, resulting in a charge of $3.3 million. The following table summarizes the Company's intangible assets as follows (in thousands): As of June 30, 2017 As of June 30, 2016 Gross Gross Carrying Accumulated Net Carrying Carrying Accumulated Net Carrying Intangible assets: Amount Amortization Amount Amount Amortization Amount Patents and tradenames $ 3,418 (717) $ 2,701 $ 3,773 $ (766) $ 3,007 Customer relationships 24,077 (8,429) 15,648 24,077 (6,021) 18,056 Non-compete agreements 3,642 (2,367) 1,275 3,642 (1,639) 2,003 Total $ 31,137 $ (11,513) $ 19,624 $ 31,492 $ (8,426) $ 23,066 Intangible assets are amortized over estimated useful lives ranging from five to fifteen years. Amortization expense totaled $3.4 million for other identifiable intangible assets for the years ended June 30, 2017 and 2016. Estimated future amortization expense for the next five years as of June 30, 2017, is as follows (in thousands): Fiscal Years Amount 2018 $ 3,364 2019 3,182 2020 2,636 2021 2,636 2022 2,636 Thereafter 5,170 Total $ 19,624

Accrued Escrow Obligations

Accrued Escrow Obligations	12 Months Ended
	Jun. 30, 2017
Accrued Escrow Obligations.
Accrued Escrow Obligations	NOTE 7 – Accrued Escrow Obligations On April 7, 2014, the Company acquired the membership interests of Advance Tooling Concepts, LLC (“ATC”) for approximately $24.3 million, of which: (i) $21.9 million was paid in cash and (ii) $2.4 million, consisting of 233,788 newly issued shares of common stock of the Company, was to be held in escrow for a period of 12 months (“ATC Escrow”) to satisfy certain working capital adjustments and/or indemnification obligations. In July 2014, the ATC Escrow was reduced by $0.7 million following the completion of a working capital adjustment. In October 2015, the Company entered into an agreement to settle and terminate the ATC Escrow in cash. The cash settlement is accrued in current and long-term liabilities. The ATC Escrow shares were returned to the Company and retired in February 2016. On June 25, 2014, the Company acquired substantially all of the assets of Kecy Corporation (“Kecy”) and 411 Munson Holding, LLC for approximately $26.8 million, of which: (i) $24.2 million was paid in cash; and (ii) $2.6 million, consisting of 172,450 newly issued shares of common stock of the Company, was to be held in escrow for a period of 18 months (“Kecy Escrow”) to satisfy certain working capital adjustments and/or indemnification obligations. In August 2015, and in connection with the decline in the Company’s stock price since the date of acquisition, the Company issued 499,176 additional shares for security of the escrow. In December 2016, the Company entered into an agreement to settle and terminate the Kecy Escrow for $2.2 million. The cash settlement is accrued in current and long-term liabilities. The Kecy Escrow shares were returned to the Company and retired in February 2017.

Debt

Debt	12 Months Ended
	Jun. 30, 2017
Debt
Debt	NOTE 8 – Debt Long-term debt payable consists of the following (in thousands): Balance as of June 30, 2017 June 30, 2016 Senior secured revolving loan $ 10,071 $ 7,560 Senior secured mortgage-based term loans 20,493 4,449 Senior secured term loan — 16,248 Senior secured delayed draw term loan — 5,509 Subordinated term loan 15,000 20,000 Total debt 45,564 Unamortized deferred financing costs (1,041) (1,349) Total debt, net 44,523 52,417 Current portion of long-term debt, net of unamortized deferred financing costs (1,701) (15,648) Long-term debt, net of current portion and unamortized deferred financing costs $ 42,822 $ 36,769 Senior Credit Agreement On September 29, 2016, the Company and certain of its subsidiaries, entered into a new senior asset-based lending credit agreement with Citizens Bank, N.A. (the “Senior ABL Credit Facility”). The Senior ABL Credit Facility provides the Company with the following extensions of credit and loans: (1) a Revolving Commitment in the principal amount of $25.0 million (the “Revolving Loan”) and (2) a mortgage-based Term Loan Commitment in the principal amount of $17.5 million (the “Term Loan”). The loans under the Senior ABL Credit Facility are secured by liens on substantially all domestic assets of the Company and guaranteed by the Company’s domestic subsidiaries who are not borrowers under the Senior ABL Credit Facility. The aggregate amount of revolving loans permitted under the Senior ABL Credit Facility may not exceed a borrowing base consisting of: (i) the sum of 85% of certain eligible accounts receivable, plus (ii) the lesser of 65% of the value of certain eligible inventory and 85% of the net orderly liquidation value of certain eligible inventory, plus (iii) an amount not to exceed $4.2 million, which amount will be adjusted based on the face amount of certain letters of credit issued to Citizens Bank, N.A. in connection with certain operating leases and capitalized leases, minus (iv) reserves for any amounts which the lender deems necessary or appropriate. Borrowings under the Senior ABL Credit Facility may be made as Base Rate Loans or Eurodollar Rate Loans. The Base Rate loans will bear interest at the fluctuating rate per annum equal to (i) the highest of (a) the Federal Funds Rate plus 1/2 of 1.00%, (b) Citizens own prime rate; and (c) the adjusted Eurodollar rate on such day for an interest period of one (1) month plus 1.00%; and (ii) plus the Applicable Rate, as described below. Eurodollar Rate Loans will bear interest at the rate per annum equal to (i) the ICE Benchmark Administration LIBOR Rate; plus (ii) the Applicable Rate. The “Applicable Rate” will be (a) 2.50% with respect to Base Rate Loans that are Term Loans and 3.50% with respect to Eurodollar Rate Loans that are Term Loans, and (b) 2.50% with respect to Base Rate Loans that are Revolving Loans and 3.50% with respect to Eurodollar Rate Loans that are Revolving Loans, in each case until December 31, 2016, and thereafter the Applicable Rate will be adjusted quarterly, responsive to the Company’s Quarterly Average Availability Percentage, ranging from 1.25% to 1.75% with respect to Base Rate Loans that are Revolving Loans and from 2.25% to 2.75% with respect to Eurodollar Rate Loans that are Revolving Loans. In addition to interest payments on the Senior ABL Credit Facility loans, the Company will pay commitment fees to the lender of 0.375% per quarter on undrawn Revolving Loans. The Company will also pay other customary fees and reimbursements of costs and disbursements to the lender. The Maturity Date with respect to the Revolving Loan and the Term Loan is August 11, 2019, provided, however, upon repayment of Company subordinated indebtedness the maturity date will automatically extend to five years after the Closing Date for Revolving Loans and Revolving Commitments, and with respect to the Term Loans, the earlier of the date that is (i) ten years after the Closing Date and (ii) the maturity date of the Revolving Loans. The Senior ABL Credit Facility contains certain mandatory prepayment provisions, including mandatory prepayments due in respect of sales of assets, sales of equity securities, events of default and other customary events, with exceptions for non-core business dispositions. The Senior ABL Credit Facility contains customary covenants and negative covenants regarding operation of the Company’s business, including maintenance of certain financial ratios, as well as restrictions on dispositions of Company assets. In connection with the Senior ABL Credit Facility, the Company and the Borrowers together with certain subsidiaries (collectively, the “Guarantors”), have entered into an Amended and Restated Guarantee and Collateral Agreement with Citizens Bank, N.A. dated as of September 29, 2016, which secures all of the loans and credits drawn from the Senior ABL Credit Facility by the Borrowers. The security interests established under the Amended and Restated Guarantee and Collateral Agreement include senior secured liens on substantially all of the assets of the Guarantors. The Guarantors have agreed to guarantee the unconditional payment and performance to the lender of all obligations of the Borrowers under the Senior ABL Credit Facility. On March 21, 2017, the Company entered into a first amendment to the Senior ABL Credit Facility to modify various definitions, including Consolidated EBITDA and the fixed charge coverage ratio, and amend prepayment provisions. On May 12, 2017, the Company entered into a second amendment to the Senior ABL Credit Facility to amend the definition of capital expenditures and amend the fixed charge coverage ratio effective with the fiscal quarter ending April 2, 2017. On September 21, 2017, the Company entered into a third amendment to the Senior ABL Credit Facility and is in compliance with its fixed charge coverage ratio at June 30, 2017, as modified. Prior Amended & Restated Credit Agreement On September 29, 2016, the Company refinanced all of the existing long-term debt obligations with Citizens Bank, N.A. into the Senior ABL Credit Facility described above. The Company accounted for the refinancing as an extinguishment of debt and wrote off $0.7 million of previously deferred financing fees. Subordinated Term Loan Credit Agreement On November 10, 2014, the Company and certain of its subsidiaries entered into a $20.0 million, five-year Subordinated Term Loan Credit Agreement (“Subordinated Loan Agreement”) with McLarty Capital Partners SBIC, L.P. (“McLarty”), which bears interest at 11% annually . Upon an event of default under the Subordinated Loan Agreement, the interest rate increases automatically by 2.00% annually. The proceeds were used to repay certain outstanding loans under the Company’s senior credit facility. ARC’s Chairman is indirectly related to McLarty; therefore, the Board of Directors appointed a special committee consisting solely of independent directors to assure that the Subordinated Loan Agreement is fair and reasonable to the Company and its shareholders. On April 20, 2016, the Company entered into a second amendment to the Subordinated Loan Agreement, as previously amended on December 29, 2014, to modi fy certain terms including: (1) Allows for the exclusion from the fixed charge coverage ratio $1.3 million of certain federal and state taxes paid related to prior years, effective March 27, 2016; (2) Modifies the minimum fixed charge coverage ratio and maximum total leverage ratio in line with the Company’s current financial expectations, effective March 27, 2016; and (3) Establishes mandatory prepayments that will be required upon the completion of asset sales or sale-leaseback transactions, with the amount of the prepayments to be determined based upon achievement of certain leverage ratios. On March 31, 2017, the Company entered into a third amendment to the Subordinated Loan Agreement to amend the Consolidated EBITDA definition to increase the amount of permitted add-backs related to a number of items such as tooling investments and certain non-recurring income and expenses and revise the fixed charge coverage ratio definition. The Subordinated Loan Agreement has been subordinated to the Senior ABL Credit Facility pursuant to a First Lien Subordination Agreement. The Subordinated Loan Agreement contains customary representations and warranties, events of default, affirmative covenants, negative covenants, and prepayment terms that are similar to those contained in the senior ABL Credit Facility described above. On September 22, 2017, the Company entered into a fourth amendment to the Subordinated Loan Agreement and is in compliance with its fixed charge coverage ratio at June 30, 2017, as modified. Loan Contract On March 23, 2016, AFT-Hungary Kft (“AFT-Hungary”) entered into a Loan Contract with Erste Bank Hungary Zrt. in an amount equal to €4.0 million (“Loan Contract”). Approximately $3.0 million of the net proceeds from the Loan Contract were used to partially repay obligations outstanding under the Company’s senior credit facility, with the remaining net proceeds used for capital expenditures and other investments to facilitate the export of goods and services provided by AFT-Hungary. The loan matures on March 7, 2021, and bears interest at a fixed rate of 0.98% per annum. The Company is required to make semi-annual principal payments in an amount equal to approximately €400,000 along with monthly interest payments. The Loan Contract is secured by certain of AFT-Hungary’s assets, including the real estate and selected machinery and equipment located in Retsag, Hungary. Future Debt Payments The following schedule represents the Company's future debt payments as of June 30, 2017 (in thousands): 2018 $ 1,787 2019 1,787 2020 41,077 2021 913 2022 — Total $ 45,564

Income Taxes

Income Taxes	12 Months Ended
	Jun. 30, 2017
Income Taxes
Income Taxes	NOTE 9 - Income Taxes The components of loss before income taxes are as follows (in thousands): June 30, 2017 June 30, 2016 United States $ $ Foreign Total $ $ The benefit for income taxes from continuing operations consisted of the following (in thousands): June 30, 2017 June 30, 2016 Current: Federal $ $ (967) State 62 Foreign 122 Total current benefit Deferred: Federal State 25 Total deferred (benefit) expense Income tax benefit $ $ A reconciliation of the federal statutory rate to the effective income tax rate follows: June 30, 2017 June 30, 2016 Federal income taxes % % State income taxes % % Foreign income inclusions — % % Share-based compensation % % Permanent items % — % Research and development tax credits % % Foreign taxes % % Uncertain tax positions % % Valuation allowance and other % % Effective rate % % Changes in the effective tax rate from the prior year to the current year are due to the allocation of tax expense between continuing operations and discontinued operations when applying intraperiod allocation rules. Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax basis, as well as from net operating loss and tax credit carryforwards, and are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered. Deferred income tax assets and liabilities represent amounts available to reduce or increase taxes payable on taxable income in future years. Management evaluates the recoverability of these future tax deductions and credits by assessing the adequacy of future expected taxable income from all sources, including carrybacks (if applicable), reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. To the extent the Company does not consider it more likely than not that a deferred tax asset will be recovered, a valuation allowance is established. Goodwill recorded as part of an asset purchase agreement is deductible for tax purposes and only recorded as a book charge if it is impaired. A deferred tax liability is recorded as the tax deduction is realized, which will not be reversed unless and until the goodwill is disposed of or impaired. Due to the goodwill impairments recognized during fiscal year 2017, there was no deferred tax liability at June 30, 2017. Significant components of the Company's deferred tax assets at June 30, 2017 and 2016 are shown below. A valuation allowance has been established as realization of such deferred tax assets has not met the more likely-than-not threshold requirement. The Company has recognized a valuation allowance to an amount it expects to realize via carry back based on fiscal year 2017 operations and the reversal of existing temporary differences. The increase in the valuation allowance in fiscal year 2017 represents the increase in deferred tax assets that the Company has determined is not more likely than not of being recovered. If the Company's judgment changes and it is determined that the Company will be able to realize these deferred tax assets, the tax benefits relating to any reversal of the valuation allowance on deferred tax assets will be accounted for as a reduction to income tax expense. Components of our deferred tax assets and liabilities were as follows (in thousands): June 30, 2017 June 30, 2016 Deferred tax assets arising from: Accrued liabilities and reserves $ $ Deferred revenue 95 9 Bad debt reserves Tangible property Inventory reserve Intangible assets Other Share-based compensation Unrealized foreign currency gain — Foreign tax credit carryforward 288 122 Research and development tax credits 311 201 Alternative minimum tax credits Tax effects of net operating loss carryforwards Less valuation allowances Deferred tax assets Deferred tax liabilities arising from: Property and equipment Prepaid expenses Unrealized foreign currency gain (27) — Deferred tax liabilities Net deferred tax asset (liability) $ 260 $ As of June 30, 2017 and 2016, the income tax receivable was $0.5 million and $1.6 million, respectively, which were recorded in other current assets. As of June 30, 2017, the deferred tax asset of $0.3 million is included in other long-term assets. As of June 30, 2017, the Company had federal net operating loss carryforwards of approximately $10.3 million expiring beginning in 2027 and state net operating loss carryforwards of approximately $10.7 million expiring beginning in 2023. Pursuant to the Internal Revenue Code Sections 382 and 383, use of the Company's U.S. federal and state net operating loss carryforwards may be limited in the event of a cumulative change in ownership of more than 50% within a three-year period. The Company had an ownership change in 2012 and, as a result, certain of the Company's net operating loss carryforwards are subject to an annual limitation, reducing the amount available to offset income tax liabilities absent the limitation. As of June 30, 2017, the Company had research and development tax credit carryforwards of approximately $0.3 million, foreign tax credit carryforwards of approximately $0.3 million, and alternative minimum tax credit carryforwards of approximately $0.3 million. If unused, the research and development tax credit carryforwards will begin to expire in 2035 and the foreign tax credit carryforwards will expire in 2026. The alternative minimum tax credits can be carried forward indefinitely. The following table summarizes the changes in the Company's unrecognized tax benefits during the year ended June 30, 2017 and 2016 (in thousands). The Company expects no material changes to unrecognized tax positions within the next twelve months. If recognized, all of these benefits would favorably impact the Company’s income tax expense, before considerations of any related valuation allowance. June 30, 2017 June 30, 2016 Balance, beginning of year $ 783 $ 924 Increase in current year position Decrease in prior year position — Balance, end of year $ $

Earnings Per Share

Earnings Per Share	12 Months Ended
	Jun. 30, 2017
Earnings Per Share
Earnings Per Share	NOTE 10 – Earnings Per Share Basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding during each period. Diluted earnings per share is computed by dividing net income available to common stockholders by the diluted weighted-average shares of common stock outstanding during each period. In connection with the acquisitions of ATC and Kecy, the Company issued a total of 905,414 shares of common stock, which were placed in escrow to satisfy certain working capital adjustments and/or indemnification obligations. As these escrow shares were expected to be returned to the Company, the escrow shares had been excluded from the basic and diluted earnings per share computations. In February 2016, the 233,788 shares of common stock previously issued for the ATC acquisition were returned to the Company and retired. In February 2017, the remaining 671,626 shares of common stock previously issued for the Kecy acquisition were returned to the Company and retired. As a result of the Company’s net loss for the fiscal year ended June 30, 2017 and 2016, potentially dilutive stock options of approximately 376,755 and 8,563 were considered anti-dilutive and were excluded from the computation of diluted earnings per share.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Jun. 30, 2017
Related Party Transactions
Related Party Transactions	NOTE 11 – Related Party Transactions Everest Hill Group Inc. Everest Hill Group Inc. (“Everest Hill Group”) is the controlling shareholder of ARC, owning approximately 49.9% of its shares outstanding as of June 30, 2017. Everest Hill Group also owns 100% of Quadrant Management Inc. (“QMI”), which indirectly owned 74% of the membership interests of Quadrant Metals Technologies LLC (“QMT”) prior to ARC’s acquisition of QMT in August 2012. ARC and QMI are under common control of Everest Hill Group. In addition, the following individuals are also affiliated with QMI and Everest Hill Group: · Mr. Alan Quasha, the Company’s Chairman and an officer of QMI, and Mr. Jason Young, the Company’s former Chief Executive Officer, each served on the Board of Directors of QMT during fiscal 2016 and received fees for such services. · Mr. Eli Davidai, the Company’s General Manager of Operations as of May 2017, has been a Managing Director at QMI since 1992, where he is responsible for making investments and overseeing companies at the firm.

Share-Based Compensation and Em

Share-Based Compensation and Employee Benefit Plans	12 Months Ended
	Jun. 30, 2017
Share-Based Compensation and Employee Benefit Plans
Share-Based Compensation and Employee Benefit Plans	NOTE 12 – Share-Based Compensation and Employee Benefit Plans In November 2015, the Company’s stockholders approved the ARC Group Worldwide, Inc. 2015 Equity Incentive Plan (“2015 Plan”), which is administered by the Compensation Committee (“Committee”) of the Board of Directors. The 2015 Plan reserves for issuance a total of 950,000 shares of common stock, which may be in the form of incentive stock options, non-qualified stock options, restricted stock, restricted stock units, or other types of awards as authorized under the plan. As of June 30, 2017, there were approximately 178,126 shares of common stock available to be granted under the 2015 Plan. In the case of stock options, the exercise price of the options granted may not be less than the fair market value of a share of common stock at the date of grant. The Committee determines the vesting conditions of awards; however, the performance period for an award subject to the satisfaction of performance measures may not exceed five years. The 2015 Plan will terminate ten years after its adoption, unless terminated earlier by the Company’s Board of Directors. In November 2016, the Company’s stockholders approved the 2016 ARC Group Worldwide, Inc. Equity Incentive Plan (“2016 Plan”), which reserves for issuance a total of 950,000 shares of common stock. The 2016 Plan contains terms and conditions substantially similar to the 2015 Plan. As of June 30, 2017, there were 534,295 shares of common stock available to be granted under the 2016 Plan. A summary of stock option activity under the 2015 Plan and 2016 Plan as of June 30, 2017 is as follows: Weighted Weighted Average Average Exercise Remaining Contractual Shares Price Term (in years) Outstanding as of June 30, 2016 759,050 $ 1.51 - Granted 1,065,030 $ 4.06 Forfeited (636,500) $ 3.59 Outstanding as of June 30, 2017 1,187,580 $ 2.68 7.07 Vested and exercisable as of June 30, 2017 451,754 $ 1.90 5.78 Vested and expected to vest as of June 30, 2017 1,093,214 $ 2.65 7.02 The vesting of 415,705 shares granted under the 2016 Plan is contingent upon the achievement of a market condition. If vesting occurs, the compensation expense related to the vested awards that has not been previously amortized will be recognized upon vesting. As of June 30, 2017, the market-based condition has not been achieved. Stock options granted during the year ended June 30, 2017 have contractual lives of seven to ten years. The weighted-average grant date fair value of stock options granted during the years ended June 30, 2017 and 2016 was $2.17 and $0.98, respectively. The total fair value of shares vested during the years ended June 30, 2017 and 2016 was $0.4 million and $0.1 million, respectively. Determining Fair Value The Company estimated the fair value of stock options granted under the 2015 Plan using the Black-Scholes method. The Company estimated the fair value and derived service period of stock options granted under the 2016 Plan with market-based vesting conditions on the date of grant using a Monte Carlo simulation, with assumptions comparable to those used under the Black-Scholes method. The assumptions used to determine the value of the Company’s stock options granted to employees during the years ended June 30, 2017 and 2016 were as follows: 2017 2016 Expected term - years - years Expected volatility % - % % - % Expected dividend yield - % - % Risk-free interest rate % - % % - % Expected Term – The expected term represents the period of time the options are expected to be outstanding. The Company uses the simplified method, as permitted by the SEC, to calculate the expected term, as the Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected life in years. The simplified method is calculated as the average of the time-to-vesting and the contractual life of the options. Expected Volatility – Expected volatility is based on the historical volatility of the Company’s common stock, which we believe will be indicative of future experience. Expected Dividends – The Company has never paid dividends on its common stock and currently does not intend to do so in the near term, and accordingly, the dividend yield percentage is zero. Risk-Free Interest Rate - The risk-free interest rate is based on the U.S. Treasury yield in effect at the time of grant with a term equal to the expected term of the stock option granted. Share-Based Compensation Expense Compensation expense recognized during the years ended June 30, 2017 and 2016 was $0.7 million and $0.2 million, respectively, and is included in selling, general and administrative expense. As of June 30, 2017, there was $0.8 million of total unrecognized compensation expense related to non-vested stock options, which is expected to be recognized over a weighted-average period of 1.7 years. The Company estimated expected forfeitures and is recognizing compensation expense only for those option grants expected to vest. The Company’s estimate of forfeitures may be adjusted throughout the requisite service period based on the extent to which actual forfeitures differ, or are likely to differ, from the Company’s previous estimates. At the end of the service period, compensation cost will have been recognized only for those awards for which the employee has provided the requisite service. 401(k) Plan The Company sponsors a safe harbor 401(k) plan that covers employees in the United States. The Company matches employee contributions based upon the amount of the employees’ contributions subject to certain limitations and may make a discretionary contribution. Company matching contributions to the 401(k) plan totaled $0.6 million for the years ended June 30, 2017 and 2016. Employee Stock Purchase Plan Under the terms of the Company’s employee stock purchase plan ("ESPP"), eligible employees may authorize payroll deductions up to 10% of their base pay to purchase shares of the Company’s common stock at a price equal to 85% of the lower of the closing price at the beginning or end of each six-month purchase period. A total of 750,000 shares were authorized under the ESPP. The purchase period began on August 1, 2016. As of June 30, 2017, there were 702,266 shares available for issuance. During the year ended June 30, 2017, 47,734 shares were purchased under the ESPP at a price of $2.05 and a grant date fair value of $2.42. The assumptions used to value the shares under the ESPP using the Black-Scholes method were as follows: Expected term 6 months Expected volatility % Expected dividend yield - % Risk-free interest rate %

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Jun. 30, 2017
Commitments and Contingencies
Commitments and Contingencies	NOTE 13 – Commitments and Contingencies Leases The Company leases land, facilities, and equipment under various non-cancellable operating lease agreements expiring through 2022, and contain various renewal options. Rent expense was $1.4 million and $0.9 million for the years ended June 30, 2017 and 2016, respectively. The Company also leases equipment and a building under non-cancellable capital lease agreements expiring through 2024. The capital leases have interest rates ranging from 3.0% to 6.3%. At June 30, 2017, approximate future rental commitments were as follows (in thousands): June 30, Capital Leases Operating Leases 2018 $ $ 2019 2020 2021 2022 48 Thereafter 96 — Total minimum lease payments $ Amount representing interest Present value of total minimum lease payments Current portion Capital lease obligation, net of current portion $ Business Interruption Claim During the third quarter of fiscal 2017, Kecy experienced a wind-generated power disruption that temporarily halted production for several days and severely damaged key equipment. The Company is insured for these business interruption and equipment repair costs and filed an insurance claim with its insurance provider. The estimated loss of $0.8 million was covered by insurance and $0.4 million was collected during the fourth quarter of fiscal 2017. The remaining $0.4 million is recorded as an insurance claim receivable at June 30, 2017. Legal Proceedings From time to time, the Company is a party to various litigation matters incidental to the conduct of its business. The Company is not presently a party to any legal proceedings, the resolution of which, management believes, would have a material adverse effect on its business, operating results, financial condition or cash flows.

Segment Information

Segment Information	12 Months Ended
	Jun. 30, 2017
Segment Information
Segment Information	NOTE 14 – Segment Information During fiscal 2017, the Company sold its non-core subsidiaries, Tekna Seal and ARC Wireless. Separately, the Company classified its Flanges and Fittings Group segment as held for sale as of June 30, 2017. The completed and planned divestiture of these non-core businesses, along with the growth in its 3D metal printing business, h as changed the way in which management and its chief operating decision maker evaluate performance and allocate resources. As a result, during the quarter ended June 30, 2017, the Company revised its business segments, consistent with its management of the business and internal financial reporting structure. Specifically, the Precision Components Group now includes the results of its plastic injection molding operations and its tooling product line, which were previously included within the 3DMT Group. Results depicted in its 3DMT Group business unit now solely reflect those operations associated with metal 3D printing and associated services. In addition, its precision metal stamping operations are now reported within the newly created Stamping Group, which were previously included in the Precision Components Group. As a result of the above transactions, the Company will report three segments as part of continuing operations: Precision Components Group, Stamping Group, and 3DMT Group. · The Precision Components Group companies provide highly engineered, precision metal components using processes consisting of metal injection molding. It also includes our tooling product line and plastic injection molding. Industries served include aerospace, automotive, consumer durables, electronic devices, firearms and defense, and medical and dental devices. · The Stamping Group consists of our precision metal stamping operations. · The 3DMT Group consists of 3D Material Technologies, LLC (“3DMT”), our metal 3D printing and additive manufacturing operations. The historical results of Tekna Seal, which were included in the Precision Components Group segment, and the historical results of the Flanges and Fittings Group segment have been reflected as discontinued operations. His torical segment information has been restated. Summarized segment information for the years ended June 30, 2017 and 2016 is as follows (in thousands): Fiscal Year Ended June 30, 2017 2016 Sales: Precision Components Group $ $ Stamping Group 3DMT Group Wireless Group Consolidated sales $ $ Operating costs: Precision Components Group $ $ Stamping Group 3DMT Group Wireless Group Consolidated operating costs $ $ Segment operating income (loss): Precision Components Group $ $ Stamping Group 3DMT Group Wireless Group Corporate (1) Total segment operating income (loss) $ $ Interest expense, net Loss on extinguishment of debt — Other income, net Non-operating expense Consolidated loss before income taxes and non-controlling interest $ $ (3,816) (1) Corporate expense includes compensation and benefits, insurance, legal, accounting, consulting, and board of directors fees. Fiscal Year Ended June 30, 2017 2016 Capital expenditures: Precision Components Group $ $ Stamping Group 3DMT Group Flanges and Fittings Group Consolidated capital expenditures $ $ Depreciation and amortization expense: Precision Components Group $ $ Stamping Group 3DMT Group Flanges and Fittings Group Wireless Group Consolidated depreciation and amortization expense $ $ As of June 30, 2017 2016 Total assets: Precision Components Group $ $ Stamping Group 3DMT Group * Flanges and Fittings Group Wireless Group — Corporate Consolidated total assets $ $ *Negative assets reflect intersegment accounts eliminated in consolidation. Geographic information for the Company is as follows (in thousands): Fiscal Year Ended June 30, 2017 2016 Sales: U.S. $ $ International $ $ As of June 30, 2017 2016 Property and equipment, net: U.S. $ $ International $ $

Significant Customers

Significant Customers	12 Months Ended
	Jun. 30, 2017
Significant Customers
Significant Customers	NOTE 15 – Significant Customers The concentration of the Company’s business with a relatively small number of customers may expose it to a material adverse effect if one or more of these large customers were to experience financial difficulty or were to cease being a customer for non-financial related issues. The Company’s revenue concentrations of 5% or greater are as follows: Percentage of Sales Customer 2017 2016 1 (a) 13.8 % 10.2 % 2 (a) 10.6 % 9.4 % 3 (a) 7.2 % 8.1 % 4 (b) 6.7 % 5.9 % 5 (b) 6.7 % 8.8 % Total 45.0 % 42.4 % (a) Revenue from this customer is generated through our Precision Components Group segment. (b) Revenue from this customer is generated through our Stamping Group segment. The Company’s accounts receivable concentrations of 5% or greater for the above-listed customers are as follows: Percentage of Receivables Customer 2017 2016 1 11.6 % 10.5 % 2 ** % 8.3 % 3 ** % 8.3 % 4 6.8 % ** % 5 ** % 5.2 % Total 18.4 % 32.3 % ** Customer represented less than 5% of accounts receivable for the years presented.

Significant Accounting Polici23

Significant Accounting Policies (Policies)	12 Months Ended
	Jun. 30, 2017
Significant Accounting Policies
Basis of Presentation	Basis of Presentation The Company’s fiscal year begins July 1 and ends June 30, and the quarters for interim reporting consist of thirteen weeks; therefore, the quarter end will not always coincide with the date of the calendar month-end.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the amounts of ARC and its controlled subsidiaries. All material intercompany transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenue and expenses during the reporting period. Due to the inherent uncertainties in making estimates, actual results could differ from those estimates and such differences may be material to the consolidated financial statements.
Reclassifications	Reclassifications Certain amounts have been reclassified in the prior year financial statements to conform to the current year presentation.
Concentration of Credit Risk	Concentration of Credit Risk The Company places its cash with high credit quality financial institutions and does not believe it is exposed to any significant credit risk on cash. At times, such cash amounts may exceed FDIC limits.
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the original invoiced amount due from the Company’s customers less an allowance for any potential uncollectible amounts. ARC controls credit risk related to accounts receivable through credit approvals, credit limits and monitoring processes. In making the determination of the appropriate allowance for doubtful accounts, management considers prior experience with customers, analysis of accounts receivable aging reports, changes in customer payment patterns, and historical write-offs. The allowance for doubtful accounts totaled $0.1 million and $0.2 million as of June 30, 2017 and 2016, respectively. The amounts charged to operations and write-offs were immaterial for the periods presented.
Inventories	Inventories Inventories are stated at the lower of average cost using the first-in, first-out (FIFO) method or market. It is the Company’s practice to provide a valuation allowance for inventories to account for actual market pricing deflation and inventory shrinkage. Management actively reviews this inventory to determine that all materials are for products still in production to determine any potential obsolescence issues.
Assets and Liabilities Held for Sale and Discontinued Operations	Assets and Liabilities Held for Sale and Discontinued Operations Assets to be disposed of that meet all of the criteria to be classified as held for sale are reported at the lower of their carrying amounts or fair values less cost to sell. Assets are not depreciated while they are classified as held for sale. Assets held for sale that have operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the Company’s assets are reported in discontinued operations when it is determined that the operations and cash flows of the assets will be eliminated from the Company’s ongoing operations and the Company will not have any significant continuing involvement in the operations of the assets after the disposal transaction. As the divestitures of Tekna Seal LLC and General Flange & Forge LLC represented a The divestiture of ARC Wireless, LLC did not represent a
Property and Equipment	Property and Equipment Property and equipment are stated at cost or acquisition date fair value less accumulated depreciation. Depreciation is recognized on a straight-line basis over the estimated useful lives of the related assets and is allocated between cost of sales and selling, general and administrative expenses. Major additions and improvements are capitalized, while replacements, maintenance and repairs, which do not improve or extend the life of the respective assets, are expensed as incurred. Assets held under capital leases are included in property and equipment and are recorded at the lower of the net present value of the minimum lease payments or the fair value of the leased asset at the inception of the lease. Amortization expense is computed using the straight-line method over the shorter of the estimated useful lives of the assets or the lease term and is recorded in depreciation and amortization expense.
Goodwill and Intangibles Assets	Goodwill, Intangible Assets and Other Long-lived Assets Goodwill is tested for impairment at least annually in June of each fiscal year, or more frequently if a triggering event occurs between impairment testing dates, and the Company is required to record any necessary impairment adjustments. During the fourth quarter of 2017, we performed our annual impairment test of goodwill for all of our reporting units. The Company determined fair values for each of the reporting units using a discounted cash flow methodology. Based on the results of our testing, the carrying values of certain reporting units exceeded their fair values and goodwill was impaired by $3.3 million (see Note 6, Goodwill and Intangible Assets, for more information). There were no other indicators of impairment for the Company’s remaining reporting units. Intangible assets (identified as patents, tradenames, customer relationships, and non-compete agreements) are recorded at fair value at the time of acquisition. Finite-lived intangibles are stated at cost less accumulated amortization. Amortization is recorded using the straight-line method, which approximates the expected pattern of economic benefit, over the estimated lives of the assets. The Company reviews the carrying value of its finite-lived intangible and long-lived tangible assets whenever events or changes in circumstances indicate that the carrying amount of the asset group may not be recoverable. Factors that would require an impairment assessment include, among other things, a significant change in the extent or manner in which an asset is used, a continual decline in the Company's operating performance, or as a result of fundamental changes in a subsidiary's business condition. Recoverability of long-lived assets is measured by comparing their carrying amount to the projected undiscounted cash flows the assets are expected to generate. If such assets are considered to be impaired, the impairment loss recognized, if any, is the amount by which the carrying amount of the finite-lived intangible assets exceeds fair value. There were no impairments of finite-lived intangible or long-lived assets during the years ended June 30, 2017 or 2016.
Other Long-lived Assets	Goodwill, Intangible Assets and Other Long-lived Assets Goodwill is tested for impairment at least annually in June of each fiscal year, or more frequently if a triggering event occurs between impairment testing dates, and the Company is required to record any necessary impairment adjustments. During the fourth quarter of 2017, we performed our annual impairment test of goodwill for all of our reporting units. The Company determined fair values for each of the reporting units using a discounted cash flow methodology. Based on the results of our testing, the carrying values of certain reporting units exceeded their fair values and goodwill was impaired by $3.3 million (see Note 6, Goodwill and Intangible Assets, for more information). There were no other indicators of impairment for the Company’s remaining reporting units. Intangible assets (identified as patents, tradenames, customer relationships, and non-compete agreements) are recorded at fair value at the time of acquisition. Finite-lived intangibles are stated at cost less accumulated amortization. Amortization is recorded using the straight-line method, which approximates the expected pattern of economic benefit, over the estimated lives of the assets. The Company reviews the carrying value of its finite-lived intangible and long-lived tangible assets whenever events or changes in circumstances indicate that the carrying amount of the asset group may not be recoverable. Factors that would require an impairment assessment include, among other things, a significant change in the extent or manner in which an asset is used, a continual decline in the Company's operating performance, or as a result of fundamental changes in a subsidiary's business condition. Recoverability of long-lived assets is measured by comparing their carrying amount to the projected undiscounted cash flows the assets are expected to generate. If such assets are considered to be impaired, the impairment loss recognized, if any, is the amount by which the carrying amount of the finite-lived intangible assets exceeds fair value. There were no impairments of finite-lived intangible or long-lived assets during the years ended June 30, 2017 or 2016.
Non-Controlling Interest	Non-Controlling Interest During the first quarter of fiscal 2016, the Company purchased approximately 1.9% of the outstanding non-controlling membership interests of Tekna Seal LLC. On September 30, 2016, the Company sold Tekna Seal LLC, which included 95.7% owned by the Company and 4.3% held by minority stakeholders (see Note 3, Divestitures, for more information). Effective October 3, 2016, the Company purchased 3.8% of the outstanding non-controlling membership interests of FloMet LLC, increasing the Company’s ownership to 100%. As a result of these transactions, there is no non-controlling interest on the consolidated balance sheet as of June 30, 2017. The Company has recognized the carrying value of the non-controlling interests as a component of equity for the applicable periods presented. In connection with the purchase of the outstanding non-controlling membership interests of FloMet LLC, we entered into a Consent and Agreement with the seller that provides that if there is any sale of FloMet LLC within three years from October 3, 2016, and if such sale price is higher than the sale of the interests by the Seller, the Seller shall receive a proportionate gross-up payment reflecting such higher price.
Accrued Expenses	Accrued Expenses As of June 30, 2017 and 2016, accrued expenses that exceeded 5% of current liabilities consisted of approximately $1.9 million and $1.4 million, respectively, of payroll related costs.
Fair Value Measurements	Fair Value Measurements The carrying value of the Company’s accounts receivable, accounts payable and accrued expenses approximate fair value because of the short maturity of these items. The carrying value of the Company’s debt outstanding approximates fair value as interest rates on these instruments approximate current market rates.
Deferred Revenue	Deferred Revenue Deferred revenue consists of customer deposits for the development of molds used in the manufacturing process. As of June 30, 2017 and 2016, deferred revenue was $1.2 million and $1.5 million, respectively. The Company recognizes revenue and the related expenses when the customer approves the mold for production. Accordingly, as of June 30, 2017 and 2016, the Company has incurred costs of $1.2 million and $1.0 million, respectively, related to molds in the process of being developed which have been deferred and are included as part of the total current assets on the accompanying balance sheets.
Revenue Recognition	Revenue Recognition Revenue is measured at the fair value of the consideration received or receivable net of sales tax, trade discounts and customer returns. The Company recognizes revenue when the earnings process is complete. This generally occurs when products are shipped to the customer in accordance with the contract or purchase order, ownership and risk of loss have passed to the customer, collectability is reasonably assured, and pricing is fixed and determinable. In instances where title does not pass to the customer upon shipment, the Company recognizes revenue upon delivery or customer acceptance, depending on terms of the sales agreement. Service sales, representing maintenance and engineering activities, are recognized as services are performed. Products are generally shipped free-on-board from our facilities, the customer pays freight costs and assumes all liability.
Research and Development Costs	Research and Development Costs Research and development costs are expensed as incurred. The majority of these expenditures consist of salaries for engineering and manufacturing personnel and outside services. For the years ended June 30, 2017 and 2016, the Company incurred $0.5 million and $0.3 million, respectively, for research and development, which is included in selling, general and administrative expenses on the accompanying statements of operations. The Company is generally compensated by customers for items related to process and material development, thereby reducing our research and development costs.
Income Taxes	Income Taxes The Company accounts for income taxes in accordance with the asset and liability method of computing income taxes. The objective of this method is to establish deferred tax assets and liabilities for any temporary differences between the financial reporting basis and the tax basis of the Company's assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled. The Company also provides for the accounting for uncertainty in income taxes recognized in financial statements and the impact of a tax position in the financial statements if that position is more likely than not of being sustained by the taxing authority. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. Interest and penalties related to uncertain tax positions of $0.1 million were recognized during the years ended June 30, 2017 and 2016, respectively. As of June 30, 2017 and 2016, accrued interest and penalties were $0.4 million and $0.3 million, respectively. In general, the tax returns for the years ending June 30, 2014 through 2017 are open to examination by federal and state authorities. Tax years 2003 and forward are open for certain of the Company's subsidiaries due to the carryforward of unutilized net operating losses.
Foreign Currency	Foreign Currency The financial position and results of operations of AFT-Hungary Kft. (“AFT-Hungary”), a wholly owned subsidiary of the Company, are measured using the Euro. Accordingly, all assets and liabilities of AFT-Hungary are translated into U.S. dollars at the currency exchange rates as of the respective balance sheet dates. Revenue and expense items are translated at the average exchange rates prevailing during the period. Resulting translation adjustments, net of applicable deferred income taxes, are recorded in accumulated other comprehensive income. Foreign currency transaction gains and losses are included in other income (expense), net in our consolidated statements of operations. Such gains and losses were not material for any period presented.
Accounting Pronouncements Adopted in the Current Period and Recent Accounting Pronouncements	Accounting Pronouncements Adopted in the Current Period In November 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”). This update requires an entity to classify deferred tax assets and liabilities as non-current within a classified statement of financial position. ASU 2015-17 is effective for annual reporting periods, and interim periods therein, beginning after December 15, 2016, but early adoption is permitted. This update may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company adopted the provisions of ASU 2015-17 on a prospective basis as of July 1, 2016; therefore, the prior period was not retrospectively adjusted. The adoption of ASU 2015-17 did not have an impact on our consolidated results of operations or cash flows. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs to ASC Topic 835, Interest - Imputation of Interest (“ASU 2015-03”). ASU 2015-03 requires an entity to present debt issuance costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of debt issuance costs will continue to be reported as interest expense. ASU 2015-03 is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2015. The Company adopted the provisions of ASU 2015-03 on July 1, 2016, which required retroactive application and represented a change in accounting principle. The deferred financing costs of approximately $1.3 million associated with a portion of our outstanding debt, which were previously included in prepaid expenses and other current assets and other assets on the consolidated balance sheet as of June 30, 2016, are reflected as a reduction to the carrying liability of the Company’s outstanding debt. As a result of this change in accounting principle, the consolidated balance sheet as of June 30, 2016 was adjusted as follows (in thousands): June 30, 2016 Previously Effect of Adoption of Reported Accounting Principle As Adjusted Assets: Prepaid expenses and other current assets $ 4,378 $ (429) $ 3,949 Other assets $ 948 $ (920) $ 28 Total assets $ 121,798 $ (1,349) $ 120,449 Liabilities: Bank borrowings, current portion of long-term debt $ 15,909 $ (261) $ 15,648 Long-term debt, net of current portion $ 37,857 $ (1,088) $ 36,769 Total liabilities $ 77,255 $ (1,349) $ 75,906 In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”), that requires management to evaluate whether there are conditions and events that raise substantial doubt about the Company’s ability to continue as a going concern within one year after the financial statements are issued or available to be issued on both an interim and annual basis. Management is required to provide certain footnote disclosures if it concludes that substantial doubt exists or when its plans alleviate substantial doubt about the Company’s ability to continue as a going concern. ASU 2014-15 is effective for all entities for the annual period ending after December 15, 2016, and for annual and interim periods thereafter, with early adoption permitted. The Company adopted ASU 2014-15 as of June 30, 2017, and its adoption did not have any significant impact on the Company’s financial statements. Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses Topic 326 (“ASU 2016-13”), which requires entities to use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowances for losses. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within that year. Early adoption is permitted. The adoption of ASU 2016-03 is not expected to have a material effect on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases: Topic 842 (“ASU 2016-02”), to supersede nearly all existing lease guidance under GAAP. ASU 2016-02 requires the recognition of lease assets and lease liabilities on the balance sheet by lessees for those leases currently classified as operating leases. ASU 2016-02 also requires qualitative disclosures along with specific quantitative disclosures and is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. Entities are required to apply the amendments at the beginning of the earliest period presented using a modified retrospective approach. The Company is evaluating the requirements of this guidance and has not yet determined the impact of the adoption on its consolidated financial position, results of operations and cash flows; however, the Company’s current operating lease commitments are disclosed in Note 13, Commitments and Contingencies. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606 (“ASU 2014-09”), to supersede nearly all existing revenue recognition guidance under GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing GAAP including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In August 2015, the FASB issued ASU 2015-14 which defers the effective date for one year beyond the originally specified effective date. ASU 2014-09 is effective in the Company’s first quarter of fiscal 2019 and may transition to the standard using either the full retrospective approach or retrospectively with a cumulative effect of initially applying the amendments recognized at the date of initial application. The Company has completed its initial assessment of the effect of adoption. Based on this initial assessment, the majority of the Company’s revenues will not be affected upon adoption. The Company is still analyzing the disclosure requirements of this new standard.

Significant Accounting Polici24

Significant Accounting Policies (Tables)	12 Months Ended
	Jun. 30, 2017
Significant Accounting Policies
Schedule of the effect of the early adoption of ASU 2015-03	As a result of this change in accounting principle, the consolidated balance sheet as of June 30, 2016 was adjusted as follows (in thousands): June 30, 2016 Previously Effect of Adoption of Reported Accounting Principle As Adjusted Assets: Prepaid expenses and other current assets $ 4,378 $ (429) $ 3,949 Other assets $ 948 $ (920) $ 28 Total assets $ 121,798 $ (1,349) $ 120,449 Liabilities: Bank borrowings, current portion of long-term debt $ 15,909 $ (261) $ 15,648 Long-term debt, net of current portion $ 37,857 $ (1,088) $ 36,769 Total liabilities $ 77,255 $ (1,349) $ 75,906

Divestitures (Tables)

Divestitures (Tables)	12 Months Ended
	Jun. 30, 2017
GF&F | Discontinued Operations, Held-for-sale
Schedule of discontinued operations results	Th e operating results of GF&F classified as discontinued operations are summarized below (in thousands): For the year ended June 30, 2017 June 30, 2016 Sales $ 4,782 $ 4,757 Cost of sales (3,619) (3,480) Gross profit 1,163 1,277 Selling, general and administrative (671) (764) Income from discontinued operations, before income taxes 492 513 Income tax expense on discontinued operations (168) (172) Income from discontinued operations, net of tax $ 324 $ 341
Schedule of assets and liabilities classified as held for sale or disposed	The following table presents the carrying amount as of June 30, 2017 and 2016, of GF&F’s major classes of assets and liabilities held for sale in the consolidated balance sheets (in thousands): June 30, 2017 June 30, 2016 Current assets: Accounts receivable, net $ 687 $ 509 Inventories, net 717 1,085 Prepaid expenses and other current assets 48 67 Total current assets 1,452 1,661 Property and equipment, net 181 184 Goodwill 1,712 1,712 Total assets of discontinued operations $ 3,345 $ 3,557 Current liabilities: Accounts payable and accrued expenses $ 283 $ 266 Total current liabilities 283 266 Other long-term liabilities 260 225 Total liabilities of discontinued operations $ 543 $ 491
TeknaSeal | Discontinued Operations, Held-for-sale or Disposed of by Sale
Schedule of discontinued operations results	Financial information for discontinued operations for the years ended June 30, 2017 and 2016 is as follows (in thousands): For the year ended June 30, 2017 June 30, 2016 Sales $ 1,277 $ 4,959 Cost of sales (943) (2,935) Gross profit 334 2,024 Selling, general and administrative (242) (846) Income from discontinued operations, before income taxes 92 1,178 Gain on sale of discontinued operations 5,374 — Total income from discontinued operations, before income taxes 5,466 1,178 Income tax expense on discontinued operations (1,789) (400) Income from discontinued operations, net of tax $ 3,677 $ 778
TeknaSeal | Discontinued Operations, Disposed of by Sale
Schedule of gain on sale of discontinued operations	Below is a summary of the gain on sale of discontinued operations (in thousands): Gross proceeds $ 10,538 Less: Property and equipment, net 218 Accounts receivable 918 Inventory 1,268 Other current assets 54 Accounts payable and accrued expenses (936) Working capital adjustment (184) Total net assets disposed 1,338 Goodwill 3,374 Transaction costs 393 Minority interests (393) Payments to minority stakeholders 452 Gain on sale of discontinued operations, before income taxes $ 5,374
TeknaSeal | Discontinued Operations, Held-for-sale
Schedule of assets and liabilities classified as held for sale or disposed	The following table presents the carrying amount as of June 30, 2016, of Tekna Seal’s major classes of assets and liabilities held for sale in the consolidated balance sheet (in thousands): June 30, 2016 Current assets: Accounts receivable, net $ 727 Inventories, net 1,028 Prepaid expenses and other current assets 89 Total current assets 1,844 Property and equipment, net 153 Goodwill 3,374 Total assets of discontinued operations $ 5,371 Current liabilities: Accounts payable and accrued expenses $ 714 Capital lease obligations 9 Total current liabilities 723 Capital lease obligations 19 Other long-term liabilities 442 Total liabilities of discontinued operations $ 1,184

Inventory (Tables)

Inventory (Tables)	12 Months Ended
	Jun. 30, 2017
Inventory
Schedule of inventories	Inventories consisted of the following (in thousands): June 30, June 30, 2017 2016 Raw materials and supplies $ 5,357 $ 6,299 Work-in-process 7,767 7,505 Finished goods 4,113 4,664 17,237 Reserve for obsolescence (2,151) Inventory of discontinued operations (717) (2,113) $ 14,369 $ 15,500

Property and Equipment (Tables)

Property and Equipment (Tables)	12 Months Ended
	Jun. 30, 2017
Property and Equipment
Schedule of property and equipment	Property and equipment consisted of the following (in thousands): Depreciable Life June 30, June 30, (in years) 2017 2016 Land — $ 1,264 $ 1,264 Building and improvements 7 - 40 18,125 17,460 Machinery and equipment 3 - 12 40,715 39,350 Office furniture and equipment 3 - 10 1,280 1,050 Construction-in-process — 2,462 1,838 Assets acquired under capital lease 7,235 5,482 71,081 Accumulated depreciation (27,201) (23,018) Accumulated amortization on capital leases (2,350) (1,445) Property and equipment of discontinued operations (181) (337) $ $

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	12 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets
Summary of goodwill activity	The following table summarizes the activity in the Company's goodwill account by segment during the years ended 2017 and 2016 (in thousands): Precision Components Group 3DMT Group Flanges and Fittings Group Consolidated Balance, June 30, 2015 $ 10,285 $ 2,804 $ 1,712 $ 14,801 Held for sale (3,374) — (1,712) (5,086) Balance, June 30, 2016 6,911 2,804 — 9,715 Adjustments (1) 2,804 (2,804) — — Impairments (2) (3,303) — — (3,303) Balance, June 30, 2017 $ 6,412 $ — $ — $ 6,412 (1) During the fiscal fourth quarter of 2017, the Company revised its business segments, which resulted in transferring the goodwill related to its ATC subsidiary from the 3DMT Group to the Precision Components Group. (2) The Company reviewed its future projections during the fourth quarter of 2017. By utilization of a discounted cash flow analysis, which takes into account projected revenues and expenses, the Company determined that the goodwill of ATC and Kecy were impaired, resulting in a charge of $3.3 million.
Summary of intangible assets	The following table summarizes the Company's intangible assets as follows (in thousands): As of June 30, 2017 As of June 30, 2016 Gross Gross Carrying Accumulated Net Carrying Carrying Accumulated Net Carrying Intangible assets: Amount Amortization Amount Amount Amortization Amount Patents and tradenames $ 3,418 (717) $ 2,701 $ 3,773 $ (766) $ 3,007 Customer relationships 24,077 (8,429) 15,648 24,077 (6,021) 18,056 Non-compete agreements 3,642 (2,367) 1,275 3,642 (1,639) 2,003 Total $ 31,137 $ (11,513) $ 19,624 $ 31,492 $ (8,426) $ 23,066
Schedule of estimated future amortization expense of intangible assets	Estimated future amortization expense for the next five years as of June 30, 2017, is as follows (in thousands): Fiscal Years Amount 2018 $ 3,364 2019 3,182 2020 2,636 2021 2,636 2022 2,636 Thereafter 5,170 Total $ 19,624

Debt (Tables)

Debt (Tables)	12 Months Ended
	Jun. 30, 2017
Debt
Schedule of long-term debt payable	Long-term debt payable consists of the following (in thousands): Balance as of June 30, 2017 June 30, 2016 Senior secured revolving loan $ 10,071 $ 7,560 Senior secured mortgage-based term loans 20,493 4,449 Senior secured term loan — 16,248 Senior secured delayed draw term loan — 5,509 Subordinated term loan 15,000 20,000 Total debt 45,564 Unamortized deferred financing costs (1,041) (1,349) Total debt, net 44,523 52,417 Current portion of long-term debt, net of unamortized deferred financing costs (1,701) (15,648) Long-term debt, net of current portion and unamortized deferred financing costs $ 42,822 $ 36,769
Schedule of future debt payments	The following schedule represents the Company's future debt payments as of June 30, 2017 (in thousands): 2018 $ 1,787 2019 1,787 2020 41,077 2021 913 2022 — Total $ 45,564

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Jun. 30, 2017
Income Taxes
Schedule of (loss) income before income taxes	The components of loss before income taxes are as follows (in thousands): June 30, 2017 June 30, 2016 United States $ $ Foreign Total $ $
Schedule of income tax provision	The benefit for income taxes from continuing operations consisted of the following (in thousands): June 30, 2017 June 30, 2016 Current: Federal $ $ (967) State 62 Foreign 122 Total current benefit Deferred: Federal State 25 Total deferred (benefit) expense Income tax benefit $ $
Reconciliation of the federal statutory rate to the effective income tax rate	A reconciliation of the federal statutory rate to the effective income tax rate follows: June 30, 2017 June 30, 2016 Federal income taxes % % State income taxes % % Foreign income inclusions — % % Share-based compensation % % Permanent items % — % Research and development tax credits % % Foreign taxes % % Uncertain tax positions % % Valuation allowance and other % % Effective rate % %
Components of deferred tax assets and liabilities	Components of our deferred tax assets and liabilities were as follows (in thousands): June 30, 2017 June 30, 2016 Deferred tax assets arising from: Accrued liabilities and reserves $ $ Deferred revenue 95 9 Bad debt reserves Tangible property Inventory reserve Intangible assets Other Share-based compensation Unrealized foreign currency gain — Foreign tax credit carryforward 288 122 Research and development tax credits 311 201 Alternative minimum tax credits Tax effects of net operating loss carryforwards Less valuation allowances Deferred tax assets Deferred tax liabilities arising from: Property and equipment Prepaid expenses Unrealized foreign currency gain (27) — Deferred tax liabilities Net deferred tax asset (liability) $ 260 $
Summary of changes in the unrecognized tax benefits	The following table summarizes the changes in the Company's unrecognized tax benefits during the year ended June 30, 2017 and 2016 (in thousands). The Company expects no material changes to unrecognized tax positions within the next twelve months. If recognized, all of these benefits would favorably impact the Company’s income tax expense, before considerations of any related valuation allowance. June 30, 2017 June 30, 2016 Balance, beginning of year $ 783 $ 924 Increase in current year position Decrease in prior year position — Balance, end of year $ $

Share-Based Compensation and 31

Share-Based Compensation and Employee Benefit Plans (Tables)	12 Months Ended
	Jun. 30, 2017
Share-Based Compensation and Employee Benefit Plans
Summary of stock option activity	A summary of stock option activity under the 2015 Plan and 2016 Plan as of June 30, 2017 is as follows: Weighted Weighted Average Average Exercise Remaining Contractual Shares Price Term (in years) Outstanding as of June 30, 2016 759,050 $ 1.51 - Granted 1,065,030 $ 4.06 Forfeited (636,500) $ 3.59 Outstanding as of June 30, 2017 1,187,580 $ 2.68 7.07 Vested and exercisable as of June 30, 2017 451,754 $ 1.90 5.78 Vested and expected to vest as of June 30, 2017 1,093,214 $ 2.65 7.02
Schedule of valuation assumptions for stock options	The assumptions used to determine the value of the Company’s stock options granted to employees during the years ended June 30, 2017 and 2016 were as follows: 2017 2016 Expected term - years - years Expected volatility % - % % - % Expected dividend yield - % - % Risk-free interest rate % - % % - %
Schedule of valuation assumptions for ESPP	The assumptions used to value the shares under the ESPP using the Black-Scholes method were as follows: Expected term 6 months Expected volatility % Expected dividend yield - % Risk-free interest rate %

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Jun. 30, 2017
Commitments and Contingencies
Future rental commitments under non-cancellable capital leases	At June 30, 2017, approximate future rental commitments were as follows (in thousands): June 30, Capital Leases Operating Leases 2018 $ $ 2019 2020 2021 2022 48 Thereafter 96 — Total minimum lease payments $ Amount representing interest Present value of total minimum lease payments Current portion Capital lease obligation, net of current portion $
Future rental commitments under non-cancellable operating leases	At June 30, 2017, approximate future rental commitments were as follows (in thousands): June 30, Capital Leases Operating Leases 2018 $ $ 2019 2020 2021 2022 48 Thereafter 96 — Total minimum lease payments $ Amount representing interest Present value of total minimum lease payments Current portion Capital lease obligation, net of current portion $

Segment Information (Tables)

Segment Information (Tables)	12 Months Ended
	Jun. 30, 2017
Segment Information
Summary of segment information	Summarized segment information for the years ended June 30, 2017 and 2016 is as follows (in thousands): Fiscal Year Ended June 30, 2017 2016 Sales: Precision Components Group $ $ Stamping Group 3DMT Group Wireless Group Consolidated sales $ $ Operating costs: Precision Components Group $ $ Stamping Group 3DMT Group Wireless Group Consolidated operating costs $ $ Segment operating income (loss): Precision Components Group $ $ Stamping Group 3DMT Group Wireless Group Corporate (1) Total segment operating income (loss) $ $ Interest expense, net Loss on extinguishment of debt — Other income, net Non-operating expense Consolidated loss before income taxes and non-controlling interest $ $ (3,816) (1) Corporate expense includes compensation and benefits, insurance, legal, accounting, consulting, and board of directors fees. Fiscal Year Ended June 30, 2017 2016 Capital expenditures: Precision Components Group $ $ Stamping Group 3DMT Group Flanges and Fittings Group Consolidated capital expenditures $ $ Depreciation and amortization expense: Precision Components Group $ $ Stamping Group 3DMT Group Flanges and Fittings Group Wireless Group Consolidated depreciation and amortization expense $ $ As of June 30, 2017 2016 Total assets: Precision Components Group $ $ Stamping Group 3DMT Group * Flanges and Fittings Group Wireless Group — Corporate Consolidated total assets $ $ *Negative assets reflect intersegment accounts eliminated in consolidation.
Schedule of geographic information	Geographic information for the Company is as follows (in thousands): Fiscal Year Ended June 30, 2017 2016 Sales: U.S. $ $ International $ $ As of June 30, 2017 2016 Property and equipment, net: U.S. $ $ International $ $

Significant Customers (Tables)

Significant Customers (Tables)	12 Months Ended
	Jun. 30, 2017
Significant Customers
Schedule of sales and accounts receivable customer concentration risk	The Company’s revenue concentrations of 5% or greater are as follows: Percentage of Sales Customer 2017 2016 1 (a) 13.8 % 10.2 % 2 (a) 10.6 % 9.4 % 3 (a) 7.2 % 8.1 % 4 (b) 6.7 % 5.9 % 5 (b) 6.7 % 8.8 % Total 45.0 % 42.4 % (a) Revenue from this customer is generated through our Precision Components Group segment. (b) Revenue from this customer is generated through our Stamping Group segment. The Company’s accounts receivable concentrations of 5% or greater for the above-listed customers are as follows: Percentage of Receivables Customer 2017 2016 1 11.6 % 10.5 % 2 ** % 8.3 % 3 ** % 8.3 % 4 6.8 % ** % 5 ** % 5.2 % Total 18.4 % 32.3 % ** Customer represented less than 5% of accounts receivable for the years presented.

Nature of Operations and Basi35

Nature of Operations and Basis of Presentation (Details)	12 Months Ended
	Jun. 30, 2017
Basis of Presentation
Length of interim quarterly reporting periods	91 days

Significant Accounting Polici36

Significant Accounting Policies - Rollforward Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions	Jun. 30, 2017	Jun. 30, 2016
Accounts Receivable and Allowance for Doubtful Accounts
Allowance for doubtful accounts	$ 0.1	$ 0.2

Significant Accounting Polici37

Significant Accounting Policies - Non Controlling Interests (Details) - USD ($) $ in Thousands	Oct. 03, 2016	Sep. 27, 2015	Jun. 30, 2017	Sep. 30, 2016	Jun. 30, 2016
Non-Controlling Interest
Non-controlling interest			$ 0		$ 1,160
TeknaSeal
Non-Controlling Interest
Purchase of outstanding non-controlling interest (as a percent)		1.90%
Percentage ownership in subsidiary				95.70%
Third party ownership percentage				4.30%
FloMet
Non-Controlling Interest
Purchase of outstanding non-controlling interest (as a percent)	3.80%
Percentage ownership in subsidiary	100.00%
Contingency period under consent and agreement (in years)	3 years

Significant Accounting Polici38

Significant Accounting Policies - Intangibles, Accruals and Others (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2016
Goodwill, Intangibles and Other Long-lived Assets
Goodwill impairment charges	$ 3,300	$ 3,303
Impairment of finite-lived assets		0	$ 0
Impairments of long-lived assets		0	0
Accrued Expenses
Payroll related costs	1,900	1,900	1,400
Deferred Revenue
Deferred revenue	1,165	1,165	1,457
Deferred costs related to molds in the process of being developed	1,200	1,200	1,000
Research and Development Costs
Research and development expense		500	300
Income Taxes
Interest and penalties related to uncertain tax positions		100	100
Accrued interest and penalties	$ 400	$ 400	$ 300

Significant Accounting Polici39

Significant Accounting Policies - Accounting Pronouncements Adopted in the Current Period (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Jun. 30, 2016
Assets
Prepaid expenses and other current assets	$ 3,152	$ 3,836
Other assets	291	28
Total assets	99,623	120,512
Liabilities
Bank borrowings, current portion of long-term debt	1,701	15,648
Long-term debt, net of current portion	42,822	36,769
Total liabilities	$ 64,956	75,969
Accounting Standards Update 2015-03
Assets
Prepaid expenses and other current assets		3,949
Other assets		28
Total assets		120,449
Liabilities
Bank borrowings, current portion of long-term debt		15,648
Long-term debt, net of current portion		36,769
Total liabilities		75,906
Accounting Standards Update 2015-03 | Previously reported
Assets
Prepaid expenses and other current assets		4,378
Other assets		948
Total assets		121,798
Liabilities
Bank borrowings, current portion of long-term debt		15,909
Long-term debt, net of current portion		37,857
Total liabilities		77,255
Accounting Standards Update 2015-03 | Effect of Adoption of Accounting Principle
Assets
Prepaid expenses and other current assets		(429)
Other assets		(920)
Total assets		(1,349)
Liabilities
Bank borrowings, current portion of long-term debt		(261)
Long-term debt, net of current portion		(1,088)
Total liabilities		$ (1,349)

Divestitures - GF&F Financial D

Divestitures - GF&F Financial Data (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Financial data
Income from discontinued operations, net of tax	$ 4,001	$ 1,119
Flanges and Fittings Group | GF&F | Discontinued Operations, Held-for-sale
Financial data
Sales	4,782	4,757
Cost of sales	(3,619)	(3,480)
Gross profit	1,163	1,277
Selling, general and administrative	(671)	(764)
Income from discontinued operations, before income taxes	492	513
Income tax expense on discontinued operations	(168)	(172)
Income from discontinued operations, net of tax	$ 324	$ 341

Divestitures - GF&F Held for Sa

Divestitures - GF&F Held for Sale (Details) - USD ($) $ in Thousands	Sep. 15, 2017	Jun. 30, 2017	Jun. 30, 2016
Current assets:
Inventories, net		$ 717	$ 2,113
Total current assets		1,452	3,505
Property and equipment, net		181	337
Current liabilities
Total current liabilities		283	989
GF&F | Discontinued Operations, Disposed of by Sale | QMI
Discontinued Operations
Gross proceeds	$ 3,000
Flanges and Fittings Group | GF&F | Discontinued Operations, Held-for-sale
Current assets:
Accounts receivable, net		687	509
Inventories, net		717	1,085
Prepaid expenses and other current assets		48	67
Total current assets		1,452	1,661
Property and equipment, net		181	184
Goodwill		1,712	1,712
Total assets of discontinued operations		3,345	3,557
Current liabilities
Accounts payable and accrued expenses		283	266
Total current liabilities		283	266
Other long-term liabilities		260	225
Total liabilities of discontinued operations		$ 543	$ 491

Divestitures TeknaSeal (Details

Divestitures TeknaSeal (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Less:
Property and equipment, net		$ 181	$ 337
Inventory		717	2,113
Payments to minority stakeholders		453
TeknaSeal | Discontinued Operations, Disposed of by Sale
Discontinued Operations
Percentage ownership in subsidiary	95.70%
Third party ownership percentage	4.30%
Precision Components Group | TeknaSeal | Discontinued Operations, Disposed of by Sale
Discontinued Operations
Gross proceeds	$ 10,538
Less:
Property and equipment, net	218
Accounts receivable	918
Inventory	1,268
Other current assets	54
Accounts payable and accrued expenses	(936)
Working capital adjustment	(184)
Total net assets disposed	1,338
Goodwill	3,374
Transaction costs	393
Minority interests	(393)
Payments to minority stakeholders	452
Gain on sale of discontinued operations, before income taxes	$ 5,374	5,374
Income from operations attributable to Company		$ 100	$ 1,100

Divestitures - TeknaSeal Financ

Divestitures - TeknaSeal Financial Data (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Financial data
Income from discontinued operations, net of tax		$ 4,001	$ 1,119
Precision Components Group | TeknaSeal | Discontinued Operations, Disposed of by Sale
Financial data
Sales		1,277
Cost of sales		(943)
Gross profit		334
Selling, general and administrative		(242)
Income from discontinued operations, before income taxes		92
Gain on sale of discontinued operations	$ 5,374	5,374
Total income from discontinued operations, before income taxes		5,466
Income tax expense on discontinued operations		(1,789)
Income from discontinued operations, net of tax		$ 3,677
Precision Components Group | TeknaSeal | Discontinued Operations, Held-for-sale
Financial data
Sales			4,959
Cost of sales			(2,935)
Gross profit			2,024
Selling, general and administrative			(846)
Income from discontinued operations, before income taxes			1,178
Total income from discontinued operations, before income taxes			1,178
Income tax expense on discontinued operations			(400)
Income from discontinued operations, net of tax			$ 778

Divestitures - TeknaSeal Held f

Divestitures - TeknaSeal Held for Sale (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Jun. 30, 2016
Current assets:
Inventories, net	$ 717	$ 2,113
Total current assets	1,452	3,505
Property and equipment, net	181	337
Current liabilities
Total current liabilities	$ 283	989
Precision Components Group | TeknaSeal | Discontinued Operations, Held-for-sale
Current assets:
Accounts receivable, net		727
Inventories, net		1,028
Prepaid expenses and other current assets		89
Total current assets		1,844
Property and equipment, net		153
Goodwill		3,374
Total assets of discontinued operations		5,371
Current liabilities
Accounts payable and accrued expenses		714
Capital lease obligations		9
Total current liabilities		723
Capital lease obligations		19
Other long-term liabilities		442
Total liabilities of discontinued operations		$ 1,184

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Jun. 30, 2016
Inventory
Raw materials and supplies	$ 5,357	$ 6,299
Work-in-process	7,767	7,505
Finished goods	4,113	4,664
Inventories, gross	17,237	18,468
Reserve for obsolescence	(2,151)	(855)
Inventory of discontinued operations	(717)	(2,113)
Inventories, net	$ 14,369	$ 15,500

Property and Equipment (Details

Property and Equipment (Details) $ in Thousands	1 Months Ended	12 Months Ended
	Jun. 30, 2016USD ($)item	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)item
Property and equipment
Property and equipment, gross	$ 66,444	$ 71,081	$ 66,444
Assets acquired under capital lease	5,482	7,235	5,482
Accumulated depreciation	(23,018)	(27,201)	(23,018)
Accumulated amortization on capital leases	(1,445)	(2,350)	(1,445)
Property and equipment of discontinued operations	(337)	(181)	(337)
Property and equipment, net	$ 41,644	41,349	41,644
Depreciation expense		6,600	$ 6,200
Number of 3D printers purchased | item	2		2
Value of 3D printers	$ 2,200
Payments to acquire printer		6,641	$ 2,633
Cash advances from financing agreement		118,124	5,543
Citizens Asset Finance, Inc.
Property and equipment
Cash advances from financing agreement	1,500
Land
Property and equipment
Property and equipment, gross	1,264	1,264	1,264
Building and improvements
Property and equipment
Property and equipment, gross	17,460	$ 18,125	17,460
Building and improvements | Minimum
Property and equipment
Depreciable Life		7 years
Building and improvements | Maximum
Property and equipment
Depreciable Life		40 years
Machinery and equipment
Property and equipment
Property and equipment, gross	39,350	$ 40,715	39,350
Machinery and equipment | Minimum
Property and equipment
Depreciable Life		3 years
Machinery and equipment | Maximum
Property and equipment
Depreciable Life		12 years
3D Printers
Property and equipment
Property and equipment, gross	600		600
Payments to acquire printer	1,100
3D Printers | Citizens Asset Finance, Inc.
Property and equipment
Secured financing	1,700		1,700
Office furniture and equipment
Property and equipment
Property and equipment, gross	1,050	$ 1,280	1,050
Office furniture and equipment | Minimum
Property and equipment
Depreciable Life		3 years
Office furniture and equipment | Maximum
Property and equipment
Depreciable Life		10 years
Construction-in-process
Property and equipment
Property and equipment, gross	$ 1,838	$ 2,462	$ 1,838

Goodwill and Intangible Asset47

Goodwill and Intangible Assets - Goodwill Activity (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2016
Goodwill
Balance, beginning of period (1)		$ 9,715	$ 14,801
Held for sale			(5,086)
Impairments (2)	$ (3,300)	(3,303)
Balance, end of period	6,412	6,412	9,715
Precision Components Group
Goodwill
Balance, beginning of period (1)		6,911	10,285
Held for sale			(3,374)
Adjustments (1)		2,804
Impairments (2)		(3,303)
Balance, end of period	$ 6,412	6,412	6,911
3DMT Group
Goodwill
Balance, beginning of period (1)		2,804	2,804
Held for sale
Adjustments (1)		(2,804)
Impairments (2)
Balance, end of period			2,804
Flanges and Fittings Group
Goodwill
Balance, beginning of period (1)			1,712
Held for sale			$ (1,712)
Impairments (2)

Goodwill and Intangible Asset48

Goodwill and Intangible Assets - Intangible Assets Summary and Future Amortization (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Intangible assets
Gross Carrying Amount	$ 31,137	$ 31,492
Accumulated Amortization	(11,513)	(8,426)
Net Carrying Amount	19,624	23,066
Amortization expense	3,400	3,400
Estimated future amortization expense
2,018	3,364
2,019	3,182
2,020	2,636
2,021	2,636
2,022	2,636
Thereafter	5,170
Net Carrying Amount	$ 19,624	23,066
Minimum
Intangible assets
Estimated useful life	5 years
Maximum
Intangible assets
Estimated useful life	15 years
Patents and tradenames
Intangible assets
Gross Carrying Amount	$ 3,418	3,773
Accumulated Amortization	(717)	(766)
Net Carrying Amount	2,701	3,007
Estimated future amortization expense
Net Carrying Amount	2,701	3,007
Customer relationships
Intangible assets
Gross Carrying Amount	24,077	24,077
Accumulated Amortization	(8,429)	(6,021)
Net Carrying Amount	15,648	18,056
Estimated future amortization expense
Net Carrying Amount	15,648	18,056
Non-compete agreements
Intangible assets
Gross Carrying Amount	3,642	3,642
Accumulated Amortization	(2,367)	(1,639)
Net Carrying Amount	1,275	2,003
Estimated future amortization expense
Net Carrying Amount	$ 1,275	$ 2,003

Accrued Escrow Obligations (Det

Accrued Escrow Obligations (Details) - USD ($) $ in Millions	Jun. 25, 2014	Apr. 07, 2014	Dec. 31, 2016	Aug. 31, 2015	Jul. 31, 2014
ATC
Purchase price for the acquisition
Aggregate purchase price		$ 24.3
Cash paid		21.9
Common stock placed in escrow, value		$ 2.4
Number of shares issued and placed into escrow		233,788
Escrow period		12 months
Reduction in escrow due to working capital adjustments					$ 0.7
Kecy
Purchase price for the acquisition
Aggregate purchase price	$ 26.8
Cash paid	24.2
Common stock placed in escrow, value	$ 2.6
Number of shares issued and placed into escrow	172,450			499,176
Escrow period	18 months
Liability to settle escrow			$ 2.2

Debt - Long-term Debt Payable (

Debt - Long-term Debt Payable (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Jun. 30, 2016
Debt
Total debt	$ 45,564	$ 53,766
Unamortized deferred financing costs	(1,041)	(1,349)
Total debt, net	44,523	52,417
Current portion of long-term debt, net of unamortized deferred financing costs	(1,701)	(15,648)
Long-term debt, net of current portion and unamortized deferred financing costs	42,822	36,769
Senior Secured Revolving Loan
Debt
Total debt	10,071	7,560
Senior secured mortgage-based term loans
Debt
Total debt	20,493	4,449
Senior secured term loan
Debt
Total debt		16,248
Senior secured delayed draw term loan
Debt
Total debt		5,509
Subordinated term loan
Debt
Total debt	$ 15,000	$ 20,000

Debt - Senior Credit Agreement

Debt - Senior Credit Agreement (Details) $ in Millions	Sep. 29, 2016USD ($)
Senior Secured Revolving Loan
Debt
Commitment fees (as a percent)	0.375%
Senior ABL Credit Facility | Federal Funds Rate
Debt
Spread on variable rate basis (as a percent)	0.50%
Senior ABL Credit Facility | Adjusted Eurodollar rate
Debt
Spread on variable rate basis (as a percent)	1.00%
Senior ABL Credit Facility | Senior Secured Revolving Loan
Debt
Percentage of eligible accounts receivable for determining borrowing base	85.00%
Percentage of eligible inventory for determining borrowing base	65.00%
Percentage of net orderly liquidation value of eligible inventory for determining borrowing base	85.00%
Maximum amount added to borrowing base formula	$ 4.2
Senior ABL Credit Facility | Base Rate Loans | Senior Secured Revolving Loan | ICE Benchmark Administration LIBOR Rate
Debt
Spread on variable rate basis (as a percent)	2.50%
Senior ABL Credit Facility | Base Rate Loans | Senior Secured Revolving Loan | ICE Benchmark Administration LIBOR Rate | Minimum
Debt
Spread on variable rate basis (as a percent)	1.25%
Senior ABL Credit Facility | Base Rate Loans | Senior Secured Revolving Loan | ICE Benchmark Administration LIBOR Rate | Maximum
Debt
Spread on variable rate basis (as a percent)	1.75%
Senior ABL Credit Facility | Base Rate Loans | Senior secured term loan | ICE Benchmark Administration LIBOR Rate
Debt
Spread on variable rate basis (as a percent)	2.50%
Senior ABL Credit Facility | Eurodollar Rate Loans | Senior Secured Revolving Loan | ICE Benchmark Administration LIBOR Rate
Debt
Spread on variable rate basis (as a percent)	3.50%
Senior ABL Credit Facility | Eurodollar Rate Loans | Senior Secured Revolving Loan | ICE Benchmark Administration LIBOR Rate | Minimum
Debt
Spread on variable rate basis (as a percent)	2.25%
Senior ABL Credit Facility | Eurodollar Rate Loans | Senior Secured Revolving Loan | ICE Benchmark Administration LIBOR Rate | Maximum
Debt
Spread on variable rate basis (as a percent)	2.75%
Senior ABL Credit Facility | Eurodollar Rate Loans | Senior secured term loan | ICE Benchmark Administration LIBOR Rate
Debt
Spread on variable rate basis (as a percent)	3.50%
Senior Secured Revolving Loan
Debt
Maximum borrowing capacity	$ 25
Extension of maturity of debt if certain conditions are met	5 years
Term Loan
Debt
Loan amount	$ 17.5
Extension of maturity of debt if certain conditions are met	10 years
Amended & Restated Credit Agreement
Debt
Write-off of deferred financing fees	$ 0.7

Debt - Subordinated Term Loan (

Debt - Subordinated Term Loan (Details) - Subordinated term loan - McLarty - Lender indirectly related to an officer and director - USD ($) $ in Millions	Mar. 27, 2016	Nov. 10, 2014
Debt
Loan amount		$ 20
Maturity term		5 years
Interest rate (as a percent)		11.00%
Interest rate increase upon an event of default (as a percent)		2.00%
Federal and state taxes excluded from fixed charge coverage ratio	$ 1.3

Debt - Loan Contract (Details)

Debt - Loan Contract (Details) - AFT Hungary - Loan Contract - Erste Bank Hungary $ in Millions	Mar. 31, 2016USD ($)	Mar. 23, 2016EUR (€)
Debt
Loan amount		€ 4,000,000
Interest rate (as a percent)		0.98%
Semi-annual payment of debt		€ 400,000
Frequency of payments		semi-annual
Amended & Restated Credit Agreement
Debt
Repayment of debt obligations | $	$ 3

Debt - Future Debt Payments (De

Debt - Future Debt Payments (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Jun. 30, 2016
Future debt payments:
2,018	$ 1,787
2,019	1,787
2,020	41,077
2,021	913
Total	$ 45,564	$ 53,766

Income Taxes - Income Before In

Income Taxes - Income Before Income Taxes and Tax Provision (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Components of loss before income taxes
United States	$ (16,560)	$ (3,053)
Foreign	(245)	(763)
Loss before income taxes	(16,805)	(3,816)
Current:
Federal	(2,272)	(967)
State	15	62
Foreign	166	122
Total current benefit	(2,091)	(783)
Deferred:
Federal	(496)	267
State	(44)	25
Total deferred (benefit) expense	(540)	292
Income tax benefit	$ (2,631)	$ (491)

Income Taxes - Reconciliation (

Income Taxes - Reconciliation (Details)	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Reconciliation of the federal statutory rate to the effective income tax rate
Federal income taxes	34.00%	34.00%
State income taxes	2.10%	1.70%
Foreign income inclusions		(1.30%)
Share-based compensation	(0.70%)	(1.50%)
Permanent items	(0.10%)
Research and development tax credits	0.80%	7.00%
Foreign taxes	(1.00%)	(3.20%)
Uncertain tax positions	(0.10%)	(1.40%)
Valuation allowance and other	(19.30%)	(22.40%)
Effective rate	15.70%	12.90%

Income Taxes - Deferred Tax Ass

Income Taxes - Deferred Tax Assets and Liabilities - (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Jun. 30, 2016
Deferred tax assets arising from:
Accrued liabilities and reserves	$ 492	$ 216
Deferred revenue	95	9
Bad debt reserves	52	93
Tangible property	127	117
Inventory reserves	756	343
Intangible assets	2,381	1,323
Other	43	44
Share-based compensation	161	4
Unrealized foreign currency gain		2
Foreign tax credit carryforward	288	122
Research and development tax credits	311	201
Alternative minimum tax credits	318	319
Tax effects of net operating loss carryforwards	3,855	2,117
Less valuation allowances	(4,933)	(1,925)
Deferred tax assets	3,946	2,985
Deferred tax liabilities arising from:
Property and equipment	(3,533)	(3,136)
Prepaid expenses	(126)	(154)
Unrealized foreign currency gain	(27)
Deferred tax liabilities	(3,686)	(3,290)
Net deferred tax liability		(305)
Net deferred tax asset	260
Other current assets
Income tax receivable
Income tax receivable	$ 500	$ 1,600

Income Taxes - Operating Loss C

Income Taxes - Operating Loss Carryforwards (Details) $ in Millions	Jun. 30, 2017USD ($)
Federal
Operating loss carryforwards
Net operating loss carryforwards	$ 10.3
State
Operating loss carryforwards
Net operating loss carryforwards	$ 10.7

Income Taxes - Unrecognized Tax

Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Changes in the unrecognized tax benefits
Gross unrecognized tax benefits at beginning of period	$ 783	$ 924
Increase in current year position	40	131
Decrease in prior year position		(272)
Gross unrecognized tax benefits at end of period	$ 823	$ 783

Earnings Per Share (Details)

Earnings Per Share (Details) - shares	1 Months Ended		12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings per share
Potentially dilutive stock options			376,755	8,563
ATC and Kecy
Earnings per share
Number of shares issued in acquisitions, held in escrow and excluded from earnings per share calculations			905,414
ATC
Earnings per share
Number of shares returned and retired		233,788
Kecy
Earnings per share
Number of shares returned and retired	671,626

Related Party Transactions (Det

Related Party Transactions (Details)	Jun. 30, 2017	Aug. 07, 2012
Controlling shareholder | Everest Hill Group
Related party transactions
Percentage ownership by related party	49.90%
QMI | QMT
Related party transactions
Percentage ownership of membership interests		74.00%
QMI | Controlling shareholder | Everest Hill Group
Related party transactions
Percentage ownership by related party	100.00%

Share-Based Compensation and 62

Share-Based Compensation and Employee Benefit Plans (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	Nov. 30, 2015	Jun. 30, 2017	Jun. 30, 2016	Nov. 30, 2016
Stock option activity rollforward
Outstanding as of June 30, 2016		759,050
Granted		1,065,030
Forfeited		(636,500)
Outstanding as of June 30, 2017		1,187,580	759,050
Vested and exercisable as of June 30, 2017		451,754
Vested and expected to vest as of June 30, 2017		1,093,214
Weighted average exercise price rollforward
Outstanding as of June 30, 2016		$ 1.51
Granted		4.06
Forfeited		3.59
Outstanding as of June 30, 2017		2.68	$ 1.51
Vested and exercisable as of June 30, 2017		1.90
Vested and expected to vest as of June 30, 2017		$ 2.65
Weighted Average Remaining Contractual Term (in years)
Outstanding		7 years 26 days
Vested and exercisable as of June 30, 2017		5 years 9 months 11 days
Vested and expected to vest as of June 30, 2017		7 years 7 days
Weighted average grant date fair value (in USD per share)		$ 2.17	$ 0.98
Total fair value of shares vested		$ 400	$ 100
Share-Based Compensation Expense
Compensation expense		752	177
Unrecognized compensation cost		$ 800
Weighted-average period that cost is expected to be recognized		1 year 8 months 12 days
401(k) Plan
Amount charged to expense for the 401(k) Plan		$ 600	600
Selling, general and administrative costs
Share-Based Compensation Expense
Compensation expense		$ 700	$ 200
Minimum
Weighted Average Remaining Contractual Term (in years)
Term		7 years
Maximum
Weighted Average Remaining Contractual Term (in years)
Term		10 years
Employee Stock Purchase Plan
Stock-based compensation
Maximum percentage of base compensation contributed to ESPP for stock purchase		10.00%
Purchase price as percentage of fair market value of common stock on the last business day of the six-month purchase period		85.00%
Purchase period		6 months
Shares reserved for issuance under equity incentive plan		750,000
Issuance of common stock under employee stock purchase plan (in shares)		47,734
Purchase price (per share)		$ 2.05
Grant-date fair value (per share)		$ 2.42
Shares available for future grants		702,266
Fair Value
Expected term		6 months
Expected volatility		77.70%
Risk-free interest rate		0.40%
Equity Incentive Plans
Fair Value
Expected volatility - minimum		78.80%	84.00%
Expected volatility - maximum		85.00%	85.10%
Risk-free interest rate - minimum		1.02%	1.37%
Risk-free interest rate - maximum		2.41%	1.41%
Equity Incentive Plans | Minimum
Fair Value
Expected term		3 years 6 months	4 years 6 months
Equity Incentive Plans | Maximum
Fair Value
Expected term		4 years 9 months	4 years 9 months
2015 Equity Incentive Plan
Stock-based compensation
Shares reserved for issuance under equity incentive plan	950,000
Shares available for future grants		178,126
Performance period for an award subject to performance measures	5 years
Years after adoption when plan will terminate	10 years
2016 Equity Incentive Plan
Stock-based compensation
Shares reserved for issuance under equity incentive plan				950,000
Shares available for future grants		534,295
2016 Equity Incentive Plan | Market-based Vesting
Stock option activity rollforward
Granted		415,705

Commitments and Contingencies -

Commitments and Contingencies - Interest Rates (Details) - Capital lease agreements	Jun. 30, 2017
Minimum
Commitments and contingencies
Interest rate (as a percent)	3.00%
Maximum
Commitments and contingencies
Interest rate (as a percent)	6.30%

Commitments and Contingencies _

Commitments and Contingencies _Rental Commitments (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2016
Commitments and Contingencies
Rent expense		$ 1,400	$ 900
Future rental commitments, Capital leases
2,018	$ 1,581	1,581
2,019	1,373	1,373
2,020	354	354
2,021	150	150
2,022	48	48
Thereafter	96	96
Total minimum lease payments	3,602	3,602
Amount representing interest	(244)	(244)
Present value of total minimum lease payments	3,358	3,358
Current portion	(1,470)	(1,470)	(837)
Capital lease obligations, net of current portion	1,888	1,888	$ 1,930
Future rental commitments, Operating leases
2,018	1,846	1,846
2,019	1,679	1,679
2,020	1,106	1,106
2,021	434	434
2,022	74	74
Total minimum lease payments	5,139	5,139
Business Interruption Claim
Estimated loss covered by insurance	800	800
Insurance proceeds	400
Insurance claim receivable	$ 400	$ 400

Segment Information - Summarize

Segment Information - Summarized (Details) $ in Thousands	12 Months Ended
	Jun. 30, 2017USD ($)segment	Jun. 30, 2016USD ($)
Segment information
Reportable business segments | segment	3
Sales	$ 99,069	$ 94,124
Operating costs	106,416	90,046
Segment operating income (loss)	(12,744)	462
Interest expense, net	(4,008)	(4,449)
Loss on extinguishment of debt	(723)
Other income, net	670	171
Non-operating expense	(4,061)	(4,278)
Loss before income taxes	(16,805)	(3,816)
Capital expenditures	6,641	2,633
Depreciation and amortization expense	9,930	9,529
Total assets	99,623	120,512
Corporate
Segment information
Segment operating income (loss)	(5,397)	(3,616)
Total assets	30,889	27,488
Precision Components Group
Segment information
Capital expenditures	4,710	2,016
Depreciation and amortization expense	6,750	6,698
Precision Components Group | Total segments
Segment information
Sales	75,053	68,573
Operating costs	80,133	64,364
Segment operating income (loss)	(5,080)	4,209
Total assets	50,641	69,623
Stamping Group
Segment information
Capital expenditures	1,292	477
Depreciation and amortization expense	2,323	2,249
Stamping Group | Total segments
Segment information
Sales	21,061	22,383
Operating costs	21,766	21,751
Segment operating income (loss)	(705)	632
Total assets	19,944	21,841
3DMT Group
Segment information
Capital expenditures	568	119
Depreciation and amortization expense	765	490
3DMT Group | Total segments
Segment information
Sales	2,528	1,659
Operating costs	3,963	2,541
Segment operating income (loss)	(1,435)	(882)
Total assets	(3,033)	(725)
Flanges and Fittings Group
Segment information
Capital expenditures	71	21
Depreciation and amortization expense	73	71
Flanges and Fittings Group | Total segments
Segment information
Total assets	1,182	1,279
Wireless Group
Segment information
Depreciation and amortization expense	19	21
Wireless Group | Total segments
Segment information
Sales	427	1,509
Operating costs	554	1,390
Segment operating income (loss)	$ (127)	119
Total assets		$ 1,006

Segment Information - Sales and

Segment Information - Sales and Property and Equipment Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Segment information
Sales	$ 99,069	$ 94,124
Property and equipment, net	41,349	41,644
U.S.
Segment information
Sales	90,607	86,776
Property and equipment, net	33,398	33,445
International
Segment information
Sales	8,462	7,348
Property and equipment, net	$ 7,951	$ 8,199

Significant Customers (Details)

Significant Customers (Details)	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Significant customers
Concentration percentage, disclosure threshold	5.00%
Customers | Sales
Significant customers
Concentration percentage	45.00%	42.40%
Customers | Receivables
Significant customers
Concentration percentage	18.40%	32.30%
Customers | Receivables | Customer 1
Significant customers
Concentration percentage	11.60%	10.50%
Customers | Receivables | Customer 2
Significant customers
Concentration percentage		8.30%
Customers | Receivables | Customer 3
Significant customers
Concentration percentage		8.30%
Customers | Receivables | Customer 4
Significant customers
Concentration percentage	6.80%
Customers | Receivables | Customer 5
Significant customers
Concentration percentage		5.20%
Precision Components Group | Customers | Sales | Customer 1
Significant customers
Concentration percentage	13.80%	10.20%
Precision Components Group | Customers | Sales | Customer 2
Significant customers
Concentration percentage	10.60%	9.40%
Precision Components Group | Customers | Sales | Customer 3
Significant customers
Concentration percentage	7.20%	8.10%
Stamping Group | Customers | Sales | Customer 4
Significant customers
Concentration percentage	6.70%	5.90%
Stamping Group | Customers | Sales | Customer 5
Significant customers
Concentration percentage	6.70%	8.80%