ARC Group Worldwide (ARCW) 10-Q 17 May 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Mar. 31, 2019	May 17, 2019
Document and Entity Information
Entity Registrant Name	ARC Group Worldwide, Inc.
Entity Central Index Key	0000826326
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		23,377,256
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Small Business	true
Entity Emerging Growth Company	false

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Apr. 01, 2018	Mar. 31, 2019	Apr. 01, 2018
Consolidated Statements of Operations
Sales	$ 19,856	$ 21,046	$ 61,328	$ 57,559
Cost of sales	20,086	19,365	56,958	54,984
Gross profit (deficit)	(230)	1,681	4,370	2,575
Selling, general and administrative	2,909	3,062	9,388	9,734
Loss from operations	(3,139)	(1,381)	(5,018)	(7,159)
Other income (expense), net	103	(104)	193	24
Interest expense, net	(936)	(857)	(2,765)	(2,744)
Loss before income taxes	(3,972)	(2,342)	(7,590)	(9,879)
Income tax benefit	796	13	728	207
Net loss from continuing operations	(3,176)	(2,329)	(6,862)	(9,672)
Loss on sale of subsidiaries and loss from discontinued operations, net of tax	(3,005)	(787)	(4,559)	(1,321)
Net loss	$ (6,181)	$ (3,116)	$ (11,421)	$ (10,993)
Net loss per common share, basic and diluted:
Continuing operations (in dollars per share)	$ (0.14)	$ (0.12)	$ (0.29)	$ (0.51)
Discontinued operations (in dollars per share)	(0.12)	(0.04)	(0.20)	(0.07)
ARC Group Worldwide, Inc. (in dollars per share)	$ (0.26)	$ (0.16)	$ (0.49)	$ (0.58)
Weighted average common shares outstanding:
Basic and diluted (in shares)	23,366,267	20,051,710	23,355,074	18,832,365

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2019	Jun. 30, 2018
Current assets:
Cash	$ 222	$ 365
Accounts receivable, net	11,243	11,103
Inventories, net	14,664	12,102
Prepaid expenses and other current assets	1,578	2,781
Current assets of discontinued operations		547
Total current assets	27,707	26,898
Property and equipment, net	35,069	36,879
Goodwill	6,412	6,412
Intangible assets, net	13,738	16,270
Other	264	347
Long-term assets of discontinued operations		3,127
Total assets	83,190	89,933
Current liabilities:
Accounts payable	13,770	11,345
Accrued expenses and other current liabilities	2,486	2,000
Deferred revenue	262	825
Bank borrowings, current portion of long-term debt and unamortized financing costs	1,604	1,721
Capital lease obligations, current portion	1,176	456
Accrued escrow obligations, current portion	595	943
Current liabilities of discontinued operations		1,422
Total current liabilities	19,893	18,712
Long-term debt, net of current portion and unamortized financing costs	41,015	37,013
Capital lease obligations, net of current portion	1,363	617
Other long-term liabilities	27	965
Long-term liabilities of discontinued operations		462
Total liabilities	62,298	57,769
Commitments and contingencies (Note 11)
Stockholders' 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; 23,385,657 shares issued and 23,377,256 shares issued and outstanding at March 31, 2019, and 23,324,316 shares issued and 23,315,915 shares issued and outstanding at June 30, 2018	12	12
Treasury stock, at cost; 8,401 shares at March 31, 2019 and June 30, 2018	(94)	(94)
Additional paid-in capital	42,087	41,829
Accumulated deficit	(21,047)	(9,627)
Accumulated other comprehensive income (loss)	(66)	44
Total stockholders' equity	20,892	32,164
Total liabilities and stockholders' equity	$ 83,190	$ 89,933

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2019	Jun. 30, 2018
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	23,385,657	23,324,316
Common stock, shares outstanding	23,377,256	23,315,915
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 deficit)	Accumulated other comprehensive income (loss)	Total
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)
Increase (Decrease) in Stockholders' Equity
Net loss				(3,555)		(3,555)
Shares issuance for exercise of options (in shares)	22,000
Share-based compensation expense			287			287
Shares issued under employee stock purchase plan			92			92
Shares issued under employee stock purchase plan (in shares)	38,000
Currency translation adjustment					62	62
Other			15	(14)		1
Balance at Oct. 01, 2017	$ 10	$ (94)	31,503	0	135	31,554
Balance (in shares) at Oct. 01, 2017	18,240,000	(8,000)
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)
Increase (Decrease) in Stockholders' Equity
Net loss						(10,993)
Balance at Apr. 01, 2018	$ 12	$ (94)	41,598	(7,438)	262	34,340
Balance (in shares) at Apr. 01, 2018	23,314,000	(8,000)
Balance at Oct. 01, 2017	$ 10	$ (94)	31,503	0	135	31,554
Balance (in shares) at Oct. 01, 2017	18,240,000	(8,000)
Increase (Decrease) in Stockholders' Equity
Net loss				(4,322)		(4,322)
Shares issuance for exercise of options			63			63
Shares issuance for exercise of options (in shares)	43,000
Share-based compensation expense			109			109
Currency translation adjustment					65	65
Other				1		1
Balance at Dec. 31, 2017	$ 10	$ (94)	31,675	(4,321)	200	27,470
Balance (in shares) at Dec. 31, 2017	18,283,000	(8,000)
Increase (Decrease) in Stockholders' Equity
Net loss				(3,116)		(3,116)
Proceeds from rights offering, net	$ 2		9,781			9,783
Proceeds from rights offering, net (in shares)	5,000,000
Share-based compensation expense			87			87
Shares issued under employee stock purchase plan			55			55
Shares issued under employee stock purchase plan (in shares)	31,000
Currency translation adjustment					62	62
Other				(1)		(1)
Balance at Apr. 01, 2018	$ 12	$ (94)	41,598	(7,438)	262	34,340
Balance (in shares) at Apr. 01, 2018	23,314,000	(8,000)
Balance at Jun. 30, 2018	$ 12	$ (94)	41,829	(9,627)	44	$ 32,164
Balance (in shares) at Jun. 30, 2018	23,324,000	(8,000)				23,324,316
Increase (Decrease) in Stockholders' Equity
Net loss				(1,697)		$ (1,697)
Shares issuance for exercise of options (in shares)	34,000
Share-based compensation expense			61			61
Currency translation adjustment					(47)	(47)
Balance at Sep. 30, 2018	$ 12	$ (94)	41,890	(11,324)	(3)	30,481
Balance (in shares) at Sep. 30, 2018	23,358,000	(8,000)
Balance at Jun. 30, 2018	$ 12	$ (94)	41,829	(9,627)	44	$ 32,164
Balance (in shares) at Jun. 30, 2018	23,324,000	(8,000)				23,324,316
Increase (Decrease) in Stockholders' Equity
Net loss						$ (11,421)
Balance at Mar. 31, 2019	$ 12	$ (94)	42,087	(21,047)	(66)	$ 20,892
Balance (in shares) at Mar. 31, 2019	23,386,000	(8,000)				23,385,657
Balance at Sep. 30, 2018	$ 12	$ (94)	41,890	(11,324)	(3)	$ 30,481
Balance (in shares) at Sep. 30, 2018	23,358,000	(8,000)
Increase (Decrease) in Stockholders' Equity
Net loss				(3,542)		(3,542)
Share-based compensation expense			137			137
Currency translation adjustment					9	9
Balance at Dec. 30, 2018	$ 12	$ (94)	42,027	(14,866)	6	27,085
Balance (in shares) at Dec. 30, 2018	23,358,000	(8,000)
Increase (Decrease) in Stockholders' Equity
Net loss				(6,181)		(6,181)
Share-based compensation expense			31			31
Shares issued under employee stock purchase plan			29			29
Shares issued under employee stock purchase plan (in shares)	28,000
Currency translation adjustment					(72)	(72)
Balance at Mar. 31, 2019	$ 12	$ (94)	$ 42,087	$ (21,047)	$ (66)	$ 20,892
Balance (in shares) at Mar. 31, 2019	23,386,000	(8,000)				23,385,657

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2019	Apr. 01, 2018
Cash flows from operating activities:
Net loss	$ (11,421)	$ (10,993)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	7,707	7,630
Share-based compensation expense	229	484
Loss on sale of asset	62	170
Loss on sale of subsidiaries	2,126	109
Bad debt expense and other	75	12
Changes in operating assets and liabilities:
Accounts receivable	(172)	(469)
Inventory	(2,560)	1,247
Prepaid expenses and other assets	1,677	124
Accounts payable	2,857	3,148
Accrued expenses and other liabilities	(766)	(1,758)
Deferred revenue	(563)	(35)
Net cash used in operating activities	(749)	(331)
Cash flows from investing activities:
Purchases of property and equipment	(1,174)	(4,432)
Proceeds from sale of subsidiary		3,000
Net cash (used in) provided by investing activities	(1,174)	(1,432)
Cash flows from financing activities:
Proceeds from debt issuance	56,276	74,956
Repayments of long-term debt and capital lease obligations	(54,308)	(83,772)
Proceeds from rights offering, net		9,783
Issuance of common stock under employee stock purchase plan and exercise of stock options	29	210
Net cash provided by financing activities	1,997	1,177
Effect of exchange rates on cash	(217)	461
Net decrease in cash	(143)	(125)
Cash, Beginning of period	365	593
Cash, End of period	222	468
Supplemental disclosures of cash flow information:
Cash paid for interest	1,874	2,079
Cash paid for income taxes, net of refunds	$ 24	$ 52

Nature of Operations and Basis

Nature of Operations and Basis of Presentation	9 Months Ended
	Mar. 31, 2019
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”). To further advance and support our core capabilities, the Company also offers complementary services including: (i) precision metal stamping; (ii) traditional and clean room plastic injection molding; and (iii) advanced rapid and conformal tooling. Through its diverse product offerings, 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 that 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. The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial reporting and pursuant to the applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Pursuant to these rules and regulations, certain information and note disclosures, normally included in financial statements prepared in accordance with GAAP, have been condensed or omitted. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments necessary for a fair presentation of its financial position and results of operations. Interim results of operations are not necessarily indicative of the results that may be achieved for the full year. The consolidated balance sheet as of June 30, 2018, was derived from the audited financial statements as of that date, but does not include all disclosures, including notes required by GAAP. As such, this quarterly report should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2018. The Company follows the same accounting policies for preparing quarterly and annual reports. Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of ARC and its wholly-owned subsidiaries. All material intercompany transactions have been eliminated in consolidation. Correction of Immaterial Errors In the first quarter of fiscal year 2019, the Company's management determined that there was an error with respect to the recording of the full cost absorption adjustment for inventory. The Company assessed the materiality of the misstatement both quantitatively and qualitatively and determined that the error was immaterial to all prior consolidated financial statements taken as a whole. Accordingly, prior period amounts have not been adjusted to reflect the correction of the error. The correction resulted in an increase in gross profit for the nine months ended March 31, 2019 of $1.0 million which related to the reporting period for the three months ended September 30, 2018.

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Mar. 31, 2019
Significant Accounting Policies
Significant Accounting Policies	NOTE 2 – Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with 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. The Company’s significant estimates include allowance for doubtful accounts, reserve for inventory obsolescence, valuation of share-based compensation, useful lives of long-lived assets, valuation of long-lived assets, and income taxes. Comprehensive Income (Loss) For each of the quarters ended March 31, 2019 and April 1, 2018, there were no material differences between net loss and comprehensive loss. Accounting Pronouncements Adopted in the Current Period In May 2014, the FASB issued Accounting Standards Update (“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. ASU 2014-09 is effective in the Company’s first quarter of fiscal 2019 and the Company 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 adopted ASU 2014-09 as of July 1, 2018 and no cumulative effect of the adoption was required. We obtained an understanding of the new standard and determined that the Company will retain much of the same accounting treatment used to recognize revenue as compared to the then existing standards. See below for the Company’s updated revenue recognition policy. Revenue Recognition On January 1, 2018, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers and all the related amendments (the “new revenue standard”) with respect to all contracts using the modified retrospective method. As a majority of the Company’s sales revenue continues to be recognized when products are shipped from its manufacturing facility, and there was no material change in the recognition model historically applied to contracts with customers under the new revenue standard, and there was no adjustment to the opening balance of retained earnings. The impact to the Company’s results of operations is not expected to be material, on an on-going basis, because the analysis of the Company’s contracts under the new revenue standard supports a recognition model consistent with the Company’s current revenue recognition model. The Company has historically recognized revenue from two streams, product revenue and tooling revenue. Product revenues are primarily generated from the sale of MIM and related products. Revenue from product sales is recognized as products are shipped, as the Company transfers control to the customer and is entitled to payment upon shipment. Tooling revenue is earned from manufacturing multiple tools, molds, and assembly equipment as part of a tooling program for that customer. Each tooling program consists of a significant service of production, with highly customized products being produced for each customer. As such, each tooling agreement consists of a single performance obligation. Based on the arrangement with the customer, the Company recognizes revenue at the time products are shipped, as the Company transfers control of the tooling product to the customer and is entitled payment upon shipment. The Company has elected to exclude from measurement of the transaction price all taxes (e.g., sales, use, value added and certain excise taxes) that are assessed by a governmental authority in connection with a specific revenue-producing transaction and collected by the Company from the customer. Accordingly, the Company recognizes revenue net of sales taxes. The revenue and cost for freight and shipping is recorded when control over the sale of goods passes to the Company’s customers. The Company offers assurance-type warranties for its products and does not have any material separate performance obligations related to these warranties. The Company’s historical rates of return are insignificant as a percentage of sales and, as a result, the Company does not record a reserve for returns at the time the Company recognizes revenue. Applying the practical expedient in ASC 340-40-25-4, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred since the amortization period of the assets that the Company otherwise would have recognized is one year or less. The Company has elected the practical expedient detailed at ASC 606-10-50-13, whereas revenue for unsatisfied performance obligations that will be billed in future periods has not been disclosed. Deferred revenue consists of customer deposits for the development of the tooling revenue component for the purpose of manufacturing the assembly part. However, as this does not trigger any income as no products have changed hands and this is done more as a collectability measure with the Customer, no other actions other than recording the deposit occur at the time of the transaction. The Company recognizes revenue and the related expenses when the customer approves and accepts delivery of the tooling part component, which is the time when the performance obligation of providing product to the customer occurs. Costs incurred related to tooling components in the process of being developed are deferred and are included as a current assets on the balance sheet. The Company does not have material amounts of contract assets since revenue is recognized as control of goods is transferred. Contract liabilities consist of customer deposits and deferred revenue. For the nine months ended March 31, 2019, the Company recognized revenue of $0.6 million related to the deferred revenue at June 30, 2018. In regards to the assembly parts, revenue is recognized when the assembly parts are shipped at the Company’s loading dock, which is when the customer takes control of the goods and the performance obligation is satisfied. The Company does not examine the effects of a financing component as the timing difference between performance and payment is less than 12 months. The Company applies this practical expedient to all contracts entered into for all products. We did not record any adjustments to our financial statements as part of the adoption of ASU 2014-09. The Company reported segment disclosures at Note 12, which presents disaggregated revenue information for financial reporting purposes. Recent Accounting Pronouncements 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. We are evaluating additional changes to our processes and internal controls to ensure we meet the standard’s reporting and disclosure requirements. While we continue to evaluate the effect of the standard on our consolidated financial statements, the adoption of the ASU will result in the recognition of a right of use asset and related liability with an estimated immaterial effect to our retained earnings. 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 operating lease commitments are disclosed in Note 12, Commitments and Contingencies, of the Company’s Form 10-K for the fiscal year ended June 30, 2018. In June 2016, the FASB issued ASU No. 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 January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other : Topic 350 (“ASU 2017-04”), which eliminates Step 2 from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. ASU 2017-04 also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative step, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. ASU 2017-04 is effective for all public businesses that are SEC filers for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company is currently evaluating the impact of ASU 2017-04 on the financial statements. There was no impairment noted during nine months ended March 31, 2019, but the Company expects that this standard will impact the financial statements if an impairment is indicated.

Divestitures

Divestitures	9 Months Ended
	Mar. 31, 2019
Divestitures
Divestitures	NOTE 3 – Divestitures General Flange & Forge LLC (“GF&F”) On September 15, 2017, the Company sold substantially all of the assets of GF&F to GFFC Holdings, LLC (“GFFC”) for $3.0 million in cash. GFFC was owned, in part, by Quadrant Management Inc., which is an affiliate of the Company. The sale of GF&F was 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 Management Inc. 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. Below is a summary of the loss on sale of discontinued operations (in thousands): Gross proceeds $ 3,000 Less: Property and equipment, net 181 Accounts receivable 561 Inventory 882 Other current assets 42 Accounts payable and accrued expenses (269) Total net assets disposed 1,397 Goodwill 1,712 Transaction costs 394 Loss on sale of discontinued operations, before income taxes $ (503) The condensed consolidated statement of operations for the three and nine months ended April 1, 2018, includes the results of operations of GF&F through the sale date of September 15, 2017 and the loss on the sale of GF&F. Financial information for discontinued operations for the three and nine months ended March 31, 2019 and April 1, 2018 is as follows (in thousands): For the three months ended For the nine months ended March 31, 2019 April 1, 2018 March 31, 2019 April 1, 2018 Sales $ — $ — $ — $ 726 Cost of sales — — — (615) Gross profit — — — 111 Selling, general and administrative — — — (108) Income from discontinued operations, before income taxes — — — 3 Loss on sale of discontinued operations — — — (503) Total loss from discontinued operations, before income taxes — — — (500) Income tax benefit on discontinued operations — — — 224 Loss from discontinued operations, net of tax $ — $ — $ — $ (276) Cash flows from GF&F for the nine months ended April 1, 2018 are combined with the cash flows from operations within each of the categories presented on the condensed consolidated statements of cash flows. 3D Material Technologies (“3DMT”) On July 18, 2018, the Company’s Board of Directors approved a plan to explore hiring a third party to help market and sell 3DMT. On July 25, 2018, the Board of Directors entered into an agreement with a third party to transact the activities of marketing and selling 3DMT. On March 29, 2019, the Company finalized an agreement with Aerojet Rocketdyne, Inc. (“Aerojet”) for the purchase of substantially all of the assets of 3DMT. As part of the sale, Aerojet assumed all assets and liabilities of 3DMT, including future operating lease obligations in lieu of cash proceeds. The condensed consolidated statements of operations for the three and nine months ended March 31, 2019 and April 1, 2018, respectively, include the results of operations of 3DMT disclosed as discontinued operations. Financial information for discontinued operations for the three and nine months ended March 31, 2019 and April 1, 2018 are as follows (in thousands): For the three months ended For the nine months ended March 31, 2019 April 1, 2018 March 31, 2019 April 1, 2018 Sales $ 204 $ 415 $ 872 $ 2,205 Cost of sales (742) (989) (2,134) (2,621) Gross profit (538) (574) (1,262) (416) Selling, general and administrative (223) (199) (626) (566) Loss from discontinued operations, before income taxes (761) (773) (1,888) (982) Interest expense (7) (14) (37) (65) Other expense, net (2,237) — (2,634) 2 Total loss from discontinued operations, before income taxes (3,005) (787) (4,559) (1,045) Income tax benefit on discontinued operations — — — — Loss from discontinued operations, net of tax $ (3,005) $ (787) $ (4,559) $ (1,045) The condensed consolidated balance sheets for March 31, 2019 and June 30, 2018 include assets related to discontinued operations as follows (in thousands): March 31, 2019 June 30, 2018 Current assets: Accounts receivable, net $ — $ 148 Inventories, net — 225 Prepaid expenses and other current assets — 174 Total current assets of discontinued operations — 547 Property and equipment, net — 3,101 Other Assets — 26 Total assets of discontinued operations $ — $ 3,674 Current liabilities: Accounts payable and accrued expenses $ — $ 449 Capital lease obligations, current portion — 973 Total current liabilities of discontinued operations — 1,422 Capital lease obligations, net of current portion — 462 Total liabilities of discontinued operations $ — $ 1,884 The Company did not reclassify its Statements of Cash Flows to reflect the various discontinued operations. Cash flows from 3DMT for the nine months ended March 31, 2019 and April 1, 2018 are combined within each of the categories presented. March 31, 2019 April 1, 2018 Net Cash Used in Operating Activities $ 1,432 $ 530 Net Cash Used in Investing Activities — 45 Net Cash Used in Financing Activities 828 831

Inventory

Inventory	9 Months Ended
	Mar. 31, 2019
Inventory
Inventory	NOTE 4– Inventory Inventories consisted of the following (in thousands): March 31, 2019 June 30, 2018 Raw materials and supplies $ 5,442 $ 5,414 Work-in-process 6,739 5,907 Finished goods 4,011 3,144 16,192 14,465 Reserve for obsolescence (1,528) Inventory of discontinued operations — (225) $ 14,664 $ 12,102

Property and Equipment

Property and Equipment	9 Months Ended
	Mar. 31, 2019
Property and Equipment
Property and Equipment	NOTE 5 – Property and Equipment Property and equipment consisted of the following (in thousands): Depreciable Life March 31, June 30, (in years) 2019 2018 Land — $ 1,264 $ 1,264 Building and improvements 7 - 40 18,326 18,188 Machinery and equipment 3 - 12 45,317 42,899 Office furniture and equipment 3 - 10 1,639 1,267 Construction-in-process — 1,156 3,910 Assets acquired under capital lease 5,654 2,735 73,356 Accumulated depreciation (36,600) (32,124) Accumulated amortization on capital leases (1,687) (1,260) $ 35,069 $ Depreciation expense totaled $1.8 million and $1.7 million for the three months ended March 31, 2019 and April 1, 2018, respectively, and $5.1 million for both the nine months ended March 31, 2019 and April 1, 2018.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Mar. 31, 2019
Goodwill and Intangible Assets
Goodwill and Intangible Assets	NOTE 6 – Goodwill and Intangible Assets Goodwill Total goodwill of $6.4 million is assigned to the Company’s Precision Components Group. The Company performs a goodwill impairment assessment on at least an annual basis. The Company conducts its annual goodwill impairment assessment during the fourth quarter, or more frequently, if indicators of impairment exist. During the fiscal quarter ended March 31, 2019, the Company assessed whether any such indicators of impairment existed and concluded there were none. Intangible Assets The following table summarizes the Company's intangible assets (in thousands): As of March 31, 2019 As of June 30, 2018 Gross Gross Carrying Accumulated Net Carrying Carrying Accumulated Net Carrying Intangible assets: Amount Amortization Amount Amount Amortization Amount Patents and tradenames $ 3,418 (1,116) $ 2,302 $ 3,418 $ (945) $ 2,473 Customer relationships 24,077 (12,653) 11,424 24,077 (10,838) 13,239 Non-compete agreements 3,654 (3,642) 12 3,654 (3,096) 558 Total $ 31,149 $ (17,411) $ 13,738 $ 31,149 $ (14,879) $ 16,270 Intangible assets are amortized using the straight-line method over estimated useful lives ranging from five to fifteen years. Amortization expense for identifiable intangible assets totaled $0.8 million for the three months ended March 31, 2019 and April 1, 2018, respectively, and $2.5 million for the nine months ended March 31, 2019 and April 1, 2018, respectively. Estimated future amortization expense for the next five years as of March 31 is as follows (in thousands): Fiscal Years Amount Remainder of 2019 $ 660 2020 2,636 2021 2,636 2022 2,636 2023 2,636 Thereafter 2,534 Total $ 13,738 There were no impairments of long-lived assets during the three and nine months ended March 31, 2019 and April 1, 2018.

Debt

Debt	9 Months Ended
	Mar. 31, 2019
Debt
Debt	NOTE 7 – Debt Long-term debt payable consists of the following (in thousands): Balance as of March 31, 2019 June 30, 2018 Senior secured revolving loan $ 10,926 $ 5,692 Senior secured mortgage-based term loans 17,179 18,765 Subordinated term loan 15,000 15,000 Total debt 43,105 39,457 Unamortized deferred financing costs (486) (723) Total debt, net 42,619 38,734 Current portion of long-term debt, net of unamortized deferred financing costs (1,604) (1,721) Long-term debt, net of current portion and unamortized deferred financing costs $ 41,015 $ 37,013 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. (“Citizens”) subsequently amended by amendments one through eight (collectively, 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 “Senior 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 Senior 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 in connection with certain operating leases and capitalized leases, minus (iv) reserves for any amounts which the lender deems necessary or appropriate. As of March 31, 2019, the Company had $2.0 million available under the borrowing base. 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 Senior Revolving Loans and 3.50% with respect to Eurodollar Rate Loans that are Senior 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 Senior Revolving Loans and from 2.25% to 2.75% with respect to Eurodollar Rate Loans that are Senior 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 Senior Revolving Loans. The Company will also pay other customary fees and reimbursements of costs and disbursements to the lender. 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 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 to amend the definition of Consolidated EBITDA. On November 12, 2017, the Company entered into the Fourth Amendment to the Senior ABL Credit Facility (the “Fourth Senior Amendment”). The Fourth Senior Amendment suspended the Company’s fixed charge coverage ratio covenant through December 31, 2018. The Fourth Senior Amendment permitted the Company to make infusions of junior capital, which may consist of subordinated debt and/or equity issuances. The junior capital infusions made under the Fourth Senior Amendment will not be subject to mandatory prepayment of the Senior ABL Credit Facility, but are subject to certain limitations in respect of outstanding subordinated indebtedness. The Fourth Senior Amendment imposed a minimum revolving credit availability covenant requiring the Company to maintain at least $3,500,000 of revolving credit available at all times. The Fourth Senior Amendment also reduced the Line Cap (consisting of the lesser of the aggregate revolving credit commitment and the borrowing base) in respect of certain prepayment obligations and conditions precedent to borrowing, by reducing the borrowing base by $1,250,000. The Fourth Senior Amendment contains customary representations and warranties regarding the status of the Company and compliance with all terms and conditions of the Senior ABL Credit Facility. On November 13, 2018, the Company entered into the Fifth Amendment to the Senior ABL Credit Facility (the “Fifth Senior Amendment”). The Fifth Senior Amendment extended the maturity date of the Senior ABL Credit Facility from August 10, 2019 to November 11, 2019. On February 12, 2019, the Company entered into the Sixth Amendment to the Senior ABL Credit Facility (the “Sixth Senior Amendment”). The Sixth Senior Amendment extended the maturity date of the Senior ABL Credit Facility from November 11, 2019 to February 11, 2020. Additionally, it extended the effective date of the Fixed Charge Ratio to March 31, 2019 with a ratio of 1.10 to 1.00. Subsequent to the period covered by this report, on April 12, 2019, the Company entered into the Seventh Amendment to the Senior ABL Credit Facility (the “Seventh Senior Amendment”). The Seventh Senior Amendment authorized the Company to obtain a bridge loan of $1.0 million (the “Bridge Loan”) from Quadrant Management, Inc. (“QMI”). Additionally, it permitted the Company’s minimum liquidity to be reduced to $1,750,000 effective March 31, 2019 through May 3, 2019 and waived all covenants as of March 31, 2019 until May 3, 2019. Subsequent to the period covered by this report, on May 15, 2019, the Company entered into the Eighth Amendment to the Senior ABL Credit Facility (the “Eighth Senior Amendment”). The Eighth Senior Amendment extended the maturity date of both the Term Loan and Senior Revolving Loan to December 31, 2020. The Eighth Senior Amendment also authorized the Company to enter into a new $7.5 million junior credit agreement with QMI (the “Junior Revolving Credit Facility”). The Junior Revolving Credit Facility is described below. The Senior Revolving Loan principal amount of $25.0 million was reduced to $17.5 million by reference to the new $7.5 million Junior Revolving Credit Facility principal amount made available to the Company by QMI. In connection with the Eighth Senior Amendment, the maturity date with respect to the Senior Revolving Loan and the Term Loan was extended to December 31, 2020, 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, or (ii) the maturity date of the Revolving Loans. The Company’s Senior ABL Credit Facility contains certain financial covenants that require the Company’s compliance. As of March 31, 2019, these financial covenants have not been met, and as part of the Seventh Senior Amendment, Citizens has waived such noncompliance. 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 ; subsequently the Company entered into amendments one through nine. In May 2018, McLarty rebranded to become The Firmament Group (“Firmament”). 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 previous 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. 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 to amend the definition of Consolidated EBITDA and the Maximum Total Leverage Ratio. On February 9, 2018, the Company entered into a Fifth Amendment to the Subordinated Loan Agreement to authorize discretionary omission by the administrative agent of certain non-cash items from the definition of Consolidated EBITDA and to include cash proceeds from the Rights Offering as excluded contributions of capital that will not be subject to mandatory prepayment under the terms of the Subordinated Loan Agreement. On November 13, 2018, the Company entered into the Sixth Amendment to the Subordinated Loan Agreement (the “Sixth Subordinated Amendment”). The Sixth Subordinated Amendment extended the maturity date of the Subordinated Loan Agreement from November 11, 2019 to February 11, 2020. On February 12, 2019, the Company entered into the Seventh Amendment to the Subordinated Loan Agreement (the “Seventh Subordinated Amendment”). The Seventh Subordinated Amendment extended the maturity date of the Subordinated Loan Agreement from February 11, 2020 to May 11, 2020. Subsequent to the period covered by this report, on April 12, 2019, the Company entered into the Eighth Amendment to the Subordinated Loan Agreement (the “Eighth Subordinated Amendment”). The terms of the Eighth Subordinated Amendment permitted the Company to obtain the Bridge Loan and adjusted other unsecured indebtedness limitations, not to exceed in the aggregate $575,000. Additionally, the Eighth Subordinated Amendment modified the minimum availability requirements incumbent upon the Company, as defined in the Senior ABL Credit Facility, requiring availability not to be less than $2,975,000 at any time prior to June 30, 2019 (or less than $1,487,500 until May 3, 2019). The Eighth Subordinated Amendment also waived all covenants as of March 31, 2019 until May 3, 2019. Subsequent to the period covered by this report, on May 15, 2019, the Company entered into the Ninth Amendment to the Subordinated Loan Agreement (the “Ninth Subordinated Amendment”). The Ninth Subordinated Amendment extended the maturity date of the Subordinated Loan Agreement to March 31, 2021. The Ninth Subordinated Amendment also authorized the Company to enter into the Junior Revolving Credit Facility, described below. The ranking of the Subordinated Loan Agreement remains junior to the Senior ABL Credit Facility in repayment and lien priority, however, in conjunction with the Ninth Subordinated Amendment, the Subordinated Loan Agreement ranking was modified to be junior to the Junior Revolving Credit Facility in payment priority and pari passu to the Junior Revolving Credit Facility in lien priority. Subject to such priorities and rankings applicable to the Subordinated Loan Agreement, McLarty has established liens and security interests in substantially all of the personal property of the Company’s domestic subsidiaries. The Company’s Subordinated Loan Agreement contains certain financial covenants that require the Company’s compliance. As of March 31, 2019, these financial covenants have not been met, and as part of the Eighth Subordinated Amendment, McLarty has waived such noncompliance. Junior Revolving Credit Facility Subsequent to the period covered by this report, on May 15, 2019, the Company, as borrower, entered into the $7.5 million Junior Revolving Credit Facility with QMI. At the closing of the Junior Revolving Credit Facility, the liability of the Company to repay the $1.0 million Bridge Loan was rolled into the Company’s repayment obligations of the Junior Revolving Credit Facility and an additional $6.5 million was made available by QMI to the Company. The Bridge Loan terminated upon rollover of its repayment obligation into the Junior Revolving Credit Facility. The Junior Revolving Credit Facility is not limited by any borrowing base or similar requirement. The Junior Revolving Credit Facility has an interest rate of 4.5% per annum on drawn capital, to be paid in kind and capitalized in lieu of cash payments. The maturity date of the Junior Revolving Credit Facility is March 31, 2021. No financial covenants apply to the Junior Revolving Credit Facility. There are no mandatory prepayments in respect of the Junior Revolving Credit Facility. Pursuant to agreement with Citizens under the terms of the Eighth Senior Amendment entered into simultaneously with the Junior Revolving Credit Facility, the entire availability of the Junior Revolving Credit Facility was drawn in full by the Company and utilized to repay the outstanding amounts previously drawn by the Company from the Citizens Revolving Loan facility. The replenished availability under the Citizens Revolving Loan became immediately available again for the Company to draw upon. Each one dollar of proceeds from the fully drawn Junior Revolving Credit Facility will therefore remain available to the Company through the Senior Revolving Facility on a dollar-for-dollar basis. After the payment in full of the Citizens Revolving Loan facility , the proceeds of the Junior Revolving Credit Facility will be used for general corporate and working capital purposes of the Company and its subsidiaries. The Junior Revolving Credit Facility ranks (i) junior to the Senior ABL Credit Facility in repayment and lien priority; (ii) senior to the Subordinated Loan Agreement in payment priority; and (iii) pari passu to the Subordinated Loan Agreement in lien priority. Subject to such r epayment and lien priorities applicable to the Junior Revolving Credit Facility, QMI has established liens and security interests in substantially all of the personal property of the Company and its domestic subsidiaries. Voluntary repayments of the Junior Revolving Credit Facility are permitted only when no loans are outstanding under the Citizens Revolving Loan facility and only if no default or event of default is continuing under the Senior ABL Credit Facility or would result therefrom (including on a pro forma basis). The Junior Revolving Credit Facility contains cross default provisions to the Senior ABL Credit Facility and the Subordinated Loan Agreement, as well as other material indebtedness. On May 15, 2019, the Company also entered into (i) an Amended and Restated Subordination Agreement with Citizens, McLarty and QMI (the “Subordination Agreement”); and (ii) a Guarantee and Collateral Agreement with McLarty, together with the Company’s domestic subsidiaries (the “McLarty Guarantee Agreement”); (iii) a Guarantee and Collateral Agreement with QMI, together with the Company’s domestic subsidiaries (the “QMI Guarantee Agreement”); and an Intercreditor Agreement, among the Company, each of its domestic subsidiaries, McLarty and QMI (the “Intercreditor Agreement”), in each case reflecting with respect to the priorities of security interests among Citizens, McLarty and QMI, and the terms and conditions applicable to the guarantees and the collateral granted by the Company and its subsidiaries to Citizens, McLarty and QMI, in each case responsive to the terms and conditions of the Eighth Senior Amendment, the Ninth Subordinated Amendment, and the QMI Junior Revolving Credit Facility, respectively. Related Party Transactions Subsequent to the period covered by this report, t he Bridge Loan, the Junior Revolving Credit Facility and an Intercreditor Agreement were entered into by the Company with QMI as a counterparty (collectively, the “QMI Credit Agreements”). QMI is an affiliate of the Company. The QMI Credit Agreements are therefore related party transactions. Mr. Alan Quasha, CEO of QMI and Chairman of the Company’s Board of Directors, and Mr. Eli Davidai, also affiliated with QMI and serving on the Company Board of Directors, respectively recused themselves from any deliberations or voting by the Board of Directors in respect of review and approval of the QMI Credit Agreements. The Board of Directors convened a special committee consisting solely of independent directors to review and assess the terms, conditions and fairness of the QMI Credit Agreements to the Company and its shareholders. In the course of undertaking such assessments, the special committee reviewed similarly situated credit facility transactions. The special committee concluded that all terms and conditions for the QMI Credit Agreements are fair and reasonable to the Company and its shareholders. Loan Contract On March 23, 2016, AFT-Hungary Kft. (“AFT Hungary”), a wholly owned subsidiary of the Company, entered into a Loan Contract with Erste Bank Hungary Zrt. in an amount equal to €4.0 million (“Loan Contract”). The initial funding of €4.0 million drawn on the Loan Contract occurred on March 31, 2016. Approximately $3.0 million of the net proceeds from the Loan Contract were used to partially repay obligations outstanding under the Senior ABL Credit Facility, with the remaining net proceeds to be 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 March 31, 2019 (in thousands): Remainder of 2019 $ 219 2020 1,772 2021 41,114 2022 — Total $ 43,105

Income Taxes

Income Taxes	9 Months Ended
	Mar. 31, 2019
Income Taxes
Income Taxes	NOTE 8 – Income Taxes The income tax receivable was $ 0.1 million and $0.5 million at March 31, 2019 and June 30, 2018, respectively, which are included in other current assets. The long-term income tax receivable was $0.2 million at March 31, 2019, which is included in other non-current assets. The Company had unrecognized tax benefits for uncertain tax positions of $0.1 and $1.0 million on March 31, 2019 and June 30, 2018, respectively, which are included in other long-term liabilities. On December 22, 2017, the U.S. Tax Cuts and Jobs Act (the “Tax Reform Act”) was signed into law by the President of the United States. The Tax Reform Act significantly revised the U.S. corporate income tax regime by, among other things, lowering the U.S. corporate tax rate from 35% to 21% effective January 1, 2018. GAAP requires that the impact of tax legislation be recognized in the period in which the law was enacted. As a result of the Tax Reform Act, the Company recorded tax expense of $1.4 million due to a remeasurement of deferred tax assets and liabilities at a blended rate in the three months ended December 31, 2017, which is fully offset by a reduction in valuation allowance. In addition, the Company recorded a tax benefit of $0.3 million due to a reduction in the valuation allowance previously recognized on alternative minimum tax (“AMT”) credit carryforwards. Under the Tax Reform Act, AMT credit carryforwards are refundable credits. The tax expense and benefit are provisional amounts and the Company’s current best estimate. Any adjustments recorded to the provisional amounts will be included in income from operations as an adjustment to tax expense, net of any related valuation allowance. The provisional amount incorporates assumptions made based upon the Company’s current interpretation of the Tax Reform Act and may change as the Company receives additional clarification and implementation guidance. The Company and its subsidiaries are subject to U.S. Federal income tax, as well as income tax of multiple state and foreign jurisdictions. As of March 31, 2019, the Company is subject to U.S. Federal income tax examinations for the years 2016 through 2018 and income tax examinations from various other jurisdictions for the years 2012 through 2018.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Mar. 31, 2019
Earnings Per Share
Earnings Per Share	NOTE 9 – Earnings Per Share Net Income (Loss) Per Share – Basic and Diluted 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. As a result of the Company’s net loss from continuing operations, for the three months ended March 31, 2019 and April 1, 2018, approximately 91,168 and 43,938 shares, respectively, and f or the nine months ended March 31, 2019 and April 1, 2018, approximately 66,179 and 85,316 shares, respectively, were considered anti-dilutive and were excluded from the computation of diluted earnings per share.

Share-Based Compensation

Share-Based Compensation	9 Months Ended
	Mar. 31, 2019
Share-Based Compensation.
Share-Based Compensation	NOTE 10 – Share-Based Compensation The Company’s share-based compensation arrangements include grants of stock options under the ARC Group Worldwide, Inc. 2015 Equity Incentive Plan, the 2016 ARC Group Worldwide, Inc. Equity Incentive Plan, and the Employee Stock Purchase Plan. The share-based compensation expense recognized during the three months ended March 31, 2019 and April 1, 2018 was $0.1 million, and during the nine months ended March 31, 2019 and April 1, 2018 was $0.2 and $0.5 million, respectively. These expenses are included in selling, general and administrative expense. As of March 31, 2019, there was $0.4 million of total unrecognized compensation expense related to non-vested stock options, which is expected to be recognized over a weighted-average period of 2.3 years.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Mar. 31, 2019
Commitments and Contingencies
Commitments and Contingencies	NOTE 11 – Commitments and Contingencies The Company leases land, facilities, and equipment under various non-cancellable operating lease agreements expiring through 2022, which contain various renewal options. 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 2.90% to 8.72%. In the normal course of business, the Company is subject to proceedings, lawsuits, regulatory agency inquiries and other claims. All such matters are subject to uncertainties and outcomes that are not predictable with assurance. As of March 31, 2019, the Company was involved in two legal matters related to fiscal 2016 and 2017. During Q3 2019, both matters were settled resulting in payments of approximately $0.5 million, which was accrued as of March 31, 2019. Other matters may exist that could materially affect operating results when resolved in future periods. However, management believes that, after final disposition, including anticipated insurance recoveries in certain cases, any monetary liability or financial impact to the Company beyond that provided in the unaudited condensed consolidated balance sheet as of March 31, 2019, would not be material to the Company’s financial position or annual results of operations.

Segment Information

Segment Information	9 Months Ended
	Mar. 31, 2019
Segment Information
Segment Information	NOTE 12 – Segment Information During fiscal 2017, the Company sold its non-core subsidiaries, Tekna Seal and ARC Wireless. Subsequently, in September 2017, the Company sold its non-core subsidiary, GF&F, which comprised the Flanges and Fittings Group segment. The completed divestiture of these non-core businesses has 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, 2018, 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. During July 2018, the Company entered into an agreement to market 3DMT for possible sale. The Company completed the sale of the non-core 3DMT on March 29, 2019. Based on this, 3DMT is included in discontinued operations for the three and nine month periods ended March 31, 2019 and April 1, 2018, respectively. 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 two segments as part of continuing operations: the Precision Components Group and the Stamping 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, primarily servicing the automotive industry. Summarized segment information for the three and nine months ended March 31, 2019 and April 1, 2018 is as follows (in thousands): Three months ended Nine months ended March 31, April 1, March 31, April 1, 2019 2018 2019 2018 Sales: Precision Components Group $ 15,032 $ 16,248 $ 46,667 $ 43,650 Stamping Group 4,824 4,798 14,661 13,909 Consolidated sales $ 19,856 $ 21,046 $ 61,328 $ 57,559 Operating costs: Precision Components Group $ 16,665 $ 16,747 $ 47,600 $ 47,369 Stamping Group 5,757 4,910 16,328 14,657 Consolidated operating costs $ 22,422 $ 21,657 $ 63,928 $ 62,026 Segment operating income (loss): Precision Components Group $ $ $ $ Stamping Group Corporate (1) (770) Total segment operating loss $ $ $ $ Interest expense, net (857) Other income (expense), net 103 (104) 193 24 Non-operating expense Consolidated loss before income taxes $ $ $ $ (1) Corporate expense includes compensation and benefits, insurance, legal, accounting, consulting, and board of directors fees.

Significant Customers

Significant Customers	9 Months Ended
	Mar. 31, 2019
Significant Customers
Significant Customers	NOTE 13 – 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 Three months ended Nine months ended March 31, April 1, March 31, April 1, Customer 2019 2018 2019 2018 1 (a) 8.0 % 11.7 % 11.4 % 8.6 % 2 (b) 10.7 % 8.2 % 10.8 % 8.9 % 3 (a) 9.6 % 6.0 % 9.1 % 7.9 % 4 (a) 6.6 % 12.3 % 8.8 % 8.7 % 5 (b) 5.8 % * % * % * % Total 40.7 % 38.2 % 40.1 % 34.1 % * Customer represented less than 5% of sales for the periods presented. (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 and additional customers with holdings above 5% are as follows: Percentage of Receivables March 31, June 30, Customer 2019 2018 1 6.8 % 8.6 % 2 8.2 % 8.8 % 3 10.4 % ** % 4 ** % 11.5 % 5 ** 5.3 % 6 6.0 % ** 7 5.1 ** Total 36.5 % 34.2 % ** Customer represented less than 5% of accounts receivable for the periods presented.

Subsequent Events

Subsequent Events	9 Months Ended
	Mar. 31, 2019
Subsequent Events
Subsequent Events	NOTE 14 – Subsequent Events On April 12, 2019, the Company entered into the Bridge Loan, the Seventh Senior Amendment and the Eighth Subordinated Amendment. The interest rate of the Bridge Loan was 4.5% and the maturity date was stated as June 30, 2019. On May 15, 2019, the Bridge Loan terminated upon rollover of its repayment obligations into the Junior Revolving Credit Facility. See discussion under Note 7 above. On May 15, 2019, the Company entered into the Eighth Senior Amendment, the Ninth Subordinated Amendment, the Junior Revolving Credit Facility, the Subordination Agreement, the McLarty Guarantee Agreement, the QMI Guarantee Agreement, and the Intercreditor Agreement. On the same date, the Bridge Loan terminated upon being rolled into the obligations due and payable under the Junior Revolving Credit Facility. See discussion under Note 7 above. On April 18, 2019, the Company received notification from the Listing Qualifications Department of the NASDAQ Stock Market LLC (“NASDAQ”) that for the previous 30 consecutive business days, the bid price for the Company’s common stock had closed below the minimum $1.00 per share requirement for continued listing on The NASDAQ Global Market under NASDAQ’s listing rule 5550 (a)(2), requiring minimum bid price of $1.00 per share (the “Minimum Bid Requirement”). The notification of noncompliance has no immediate effect on the listing or trading of the Company’s common stock on the NASDAQ Global Market. In accordance with NASDAQ Listing Rule 5810 (c)(3)(A), if during the 180 calendar days following the date of the notification, or prior to October 15, 2019, the closing bid price of the Company’s common stock is at or above $1.00 for a minimum of 10 consecutive business days, the NASDAQ Staff (“the Staff”) will provide the Company with written confirmation of compliance. If the Company does not achieve compliance with the Minimum Bid Requirement by October 15, 2019, the Company may be eligible for an additional 180 calendar days compliance period if it elects to transfer to the NASDAQ Capital Market, so as to take advantage of the additional compliance period offered on that market. To qualify, the Company would be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for the NASDAQ Capital Market, with the exception of the bid price requirement, and would need to provide written notice of its intention to cure the deficiency during the second compliance period. However, if it appears to the Staff that the Company will not be able to cure the deficiency, or if the Company is otherwise not eligible, the Staff would notify the Company that its securities would be subject to delisting. In the event of such notifications, the Company may appeal the Staff’s determination to delist its securities, but there can be no assurance the Staff would grant the Company’s request for continued listing. On May 14, 2019, Mr. Aaron Willman accepted updated terms of employment offered by the Company in respect of his services as Chief Financial Officer of the Company and as General Manager of the Company’s subsidiary ARC Metal Stamping, LLC. Mr. Willman will continue to serve in all capacities as an employee at will. Mr. Willman will receive an annual combined base salary for all services in the aggregate amount of $200,000 per annum, subject to increase to match the salary of any new Company Chief Executive Officer if such person is employed by the Company or an affiliate of the Company prior to his or her appointment as CEO. Mr. Willman will continue to be eligible to participate in all employee benefit plans, practices, and programs maintained by the Company. Mr. Willman will be eligible for bonuses which could range from $80,000 to $475,000 in the aggregate, subject to accomplishing certain value enhancement milestones for the Company. The Company has evaluated subsequent events through May 17, 2019, the date the financial statements were issued.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	9 Months Ended
	Mar. 31, 2019
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. The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial reporting and pursuant to the applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Pursuant to these rules and regulations, certain information and note disclosures, normally included in financial statements prepared in accordance with GAAP, have been condensed or omitted. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments consisting of normal recurring adjustments necessary for a fair presentation of its financial position and results of operations. Interim results of operations are not necessarily indicative of the results that may be achieved for the full year. The consolidated balance sheet as of June 30, 2018, was derived from the audited financial statements as of that date, but does not include all disclosures, including notes required by GAAP. As such, this quarterly report should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2018. The Company follows the same accounting policies for preparing quarterly and annual reports.
Principles of Consolidation	Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of ARC and its wholly-owned subsidiaries. All material intercompany transactions have been eliminated in consolidation.
Correction of Immaterial Errors	Correction of Immaterial Errors In the first quarter of fiscal year 2019, the Company's management determined that there was an error with respect to the recording of the full cost absorption adjustment for inventory. The Company assessed the materiality of the misstatement both quantitatively and qualitatively and determined that the error was immaterial to all prior consolidated financial statements taken as a whole. Accordingly, prior period amounts have not been adjusted to reflect the correction of the error. The correction resulted in an increase in gross profit for the nine months ended March 31, 2019 of $1.0 million which related to the reporting period for the three months ended September 30, 2018.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with 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. The Company’s significant estimates include allowance for doubtful accounts, reserve for inventory obsolescence, valuation of share-based compensation, useful lives of long-lived assets, valuation of long-lived assets, and income taxes.
Comprehensive Income (Loss)	Comprehensive Income (Loss) For each of the quarters ended March 31, 2019 and April 1, 2018, there were no material differences between net loss and comprehensive loss.
Revenue Recognition	Revenue Recognition On January 1, 2018, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers and all the related amendments (the “new revenue standard”) with respect to all contracts using the modified retrospective method. As a majority of the Company’s sales revenue continues to be recognized when products are shipped from its manufacturing facility, and there was no material change in the recognition model historically applied to contracts with customers under the new revenue standard, and there was no adjustment to the opening balance of retained earnings. The impact to the Company’s results of operations is not expected to be material, on an on-going basis, because the analysis of the Company’s contracts under the new revenue standard supports a recognition model consistent with the Company’s current revenue recognition model. The Company has historically recognized revenue from two streams, product revenue and tooling revenue. Product revenues are primarily generated from the sale of MIM and related products. Revenue from product sales is recognized as products are shipped, as the Company transfers control to the customer and is entitled to payment upon shipment. Tooling revenue is earned from manufacturing multiple tools, molds, and assembly equipment as part of a tooling program for that customer. Each tooling program consists of a significant service of production, with highly customized products being produced for each customer. As such, each tooling agreement consists of a single performance obligation. Based on the arrangement with the customer, the Company recognizes revenue at the time products are shipped, as the Company transfers control of the tooling product to the customer and is entitled payment upon shipment. The Company has elected to exclude from measurement of the transaction price all taxes (e.g., sales, use, value added and certain excise taxes) that are assessed by a governmental authority in connection with a specific revenue-producing transaction and collected by the Company from the customer. Accordingly, the Company recognizes revenue net of sales taxes. The revenue and cost for freight and shipping is recorded when control over the sale of goods passes to the Company’s customers. The Company offers assurance-type warranties for its products and does not have any material separate performance obligations related to these warranties. The Company’s historical rates of return are insignificant as a percentage of sales and, as a result, the Company does not record a reserve for returns at the time the Company recognizes revenue. Applying the practical expedient in ASC 340-40-25-4, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred since the amortization period of the assets that the Company otherwise would have recognized is one year or less. The Company has elected the practical expedient detailed at ASC 606-10-50-13, whereas revenue for unsatisfied performance obligations that will be billed in future periods has not been disclosed. Deferred revenue consists of customer deposits for the development of the tooling revenue component for the purpose of manufacturing the assembly part. However, as this does not trigger any income as no products have changed hands and this is done more as a collectability measure with the Customer, no other actions other than recording the deposit occur at the time of the transaction. The Company recognizes revenue and the related expenses when the customer approves and accepts delivery of the tooling part component, which is the time when the performance obligation of providing product to the customer occurs. Costs incurred related to tooling components in the process of being developed are deferred and are included as a current assets on the balance sheet. The Company does not have material amounts of contract assets since revenue is recognized as control of goods is transferred. Contract liabilities consist of customer deposits and deferred revenue. For the nine months ended March 31, 2019, the Company recognized revenue of $0.6 million related to the deferred revenue at June 30, 2018. In regards to the assembly parts, revenue is recognized when the assembly parts are shipped at the Company’s loading dock, which is when the customer takes control of the goods and the performance obligation is satisfied. The Company does not examine the effects of a financing component as the timing difference between performance and payment is less than 12 months. The Company applies this practical expedient to all contracts entered into for all products. We did not record any adjustments to our financial statements as part of the adoption of ASU 2014-09. The Company reported segment disclosures at Note 12, which presents disaggregated revenue information for financial reporting purposes.
Accounting Pronouncements Adopted in the Current Period and Recent Accounting Pronouncements	Accounting Pronouncements Adopted in the Current Period In May 2014, the FASB issued Accounting Standards Update (“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. ASU 2014-09 is effective in the Company’s first quarter of fiscal 2019 and the Company 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 adopted ASU 2014-09 as of July 1, 2018 and no cumulative effect of the adoption was required. We obtained an understanding of the new standard and determined that the Company will retain much of the same accounting treatment used to recognize revenue as compared to the then existing standards. See below for the Company’s updated revenue recognition policy. Revenue Recognition On January 1, 2018, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers and all the related amendments (the “new revenue standard”) with respect to all contracts using the modified retrospective method. As a majority of the Company’s sales revenue continues to be recognized when products are shipped from its manufacturing facility, and there was no material change in the recognition model historically applied to contracts with customers under the new revenue standard, and there was no adjustment to the opening balance of retained earnings. The impact to the Company’s results of operations is not expected to be material, on an on-going basis, because the analysis of the Company’s contracts under the new revenue standard supports a recognition model consistent with the Company’s current revenue recognition model. The Company has historically recognized revenue from two streams, product revenue and tooling revenue. Product revenues are primarily generated from the sale of MIM and related products. Revenue from product sales is recognized as products are shipped, as the Company transfers control to the customer and is entitled to payment upon shipment. Tooling revenue is earned from manufacturing multiple tools, molds, and assembly equipment as part of a tooling program for that customer. Each tooling program consists of a significant service of production, with highly customized products being produced for each customer. As such, each tooling agreement consists of a single performance obligation. Based on the arrangement with the customer, the Company recognizes revenue at the time products are shipped, as the Company transfers control of the tooling product to the customer and is entitled payment upon shipment. The Company has elected to exclude from measurement of the transaction price all taxes (e.g., sales, use, value added and certain excise taxes) that are assessed by a governmental authority in connection with a specific revenue-producing transaction and collected by the Company from the customer. Accordingly, the Company recognizes revenue net of sales taxes. The revenue and cost for freight and shipping is recorded when control over the sale of goods passes to the Company’s customers. The Company offers assurance-type warranties for its products and does not have any material separate performance obligations related to these warranties. The Company’s historical rates of return are insignificant as a percentage of sales and, as a result, the Company does not record a reserve for returns at the time the Company recognizes revenue. Applying the practical expedient in ASC 340-40-25-4, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred since the amortization period of the assets that the Company otherwise would have recognized is one year or less. The Company has elected the practical expedient detailed at ASC 606-10-50-13, whereas revenue for unsatisfied performance obligations that will be billed in future periods has not been disclosed. Deferred revenue consists of customer deposits for the development of the tooling revenue component for the purpose of manufacturing the assembly part. However, as this does not trigger any income as no products have changed hands and this is done more as a collectability measure with the Customer, no other actions other than recording the deposit occur at the time of the transaction. The Company recognizes revenue and the related expenses when the customer approves and accepts delivery of the tooling part component, which is the time when the performance obligation of providing product to the customer occurs. Costs incurred related to tooling components in the process of being developed are deferred and are included as a current assets on the balance sheet. The Company does not have material amounts of contract assets since revenue is recognized as control of goods is transferred. Contract liabilities consist of customer deposits and deferred revenue. For the nine months ended March 31, 2019, the Company recognized revenue of $0.6 million related to the deferred revenue at June 30, 2018. In regards to the assembly parts, revenue is recognized when the assembly parts are shipped at the Company’s loading dock, which is when the customer takes control of the goods and the performance obligation is satisfied. The Company does not examine the effects of a financing component as the timing difference between performance and payment is less than 12 months. The Company applies this practical expedient to all contracts entered into for all products. We did not record any adjustments to our financial statements as part of the adoption of ASU 2014-09. The Company reported segment disclosures at Note 12, which presents disaggregated revenue information for financial reporting purposes. Recent Accounting Pronouncements 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. We are evaluating additional changes to our processes and internal controls to ensure we meet the standard’s reporting and disclosure requirements. While we continue to evaluate the effect of the standard on our consolidated financial statements, the adoption of the ASU will result in the recognition of a right of use asset and related liability with an estimated immaterial effect to our retained earnings. 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 operating lease commitments are disclosed in Note 12, Commitments and Contingencies, of the Company’s Form 10-K for the fiscal year ended June 30, 2018. In June 2016, the FASB issued ASU No. 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 January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other: Topic 350 (“ASU 2017-04”), which eliminates Step 2 from the goodwill impairment test. The annual, or interim, goodwill impairment test is performed by comparing fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. ASU 2017-04 also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative step, to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. ASU 2017-04 is effective for all public businesses that are SEC filers for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company is currently evaluating the impact of ASU 2017-04 on the financial statements. There was no impairment noted during nine months ended March 31, 2019, but the Company expects that this standard will impact the financial statements if an impairment is indicated.

Divestitures (Tables)

Divestitures (Tables) - Discontinued Operations, Disposed of by Sale	9 Months Ended
	Mar. 31, 2019
GF&F
Schedule of loss on sale of discontinued operations	Below is a summary of the loss on sale of discontinued operations (in thousands): Gross proceeds $ 3,000 Less: Property and equipment, net 181 Accounts receivable 561 Inventory 882 Other current assets 42 Accounts payable and accrued expenses (269) Total net assets disposed 1,397 Goodwill 1,712 Transaction costs 394 Loss on sale of discontinued operations, before income taxes $ (503)
Schedule of discontinued operations results	Financial information for discontinued operations for the three and nine months ended March 31, 2019 and April 1, 2018 is as follows (in thousands): For the three months ended For the nine months ended March 31, 2019 April 1, 2018 March 31, 2019 April 1, 2018 Sales $ — $ — $ — $ 726 Cost of sales — — — (615) Gross profit — — — 111 Selling, general and administrative — — — (108) Income from discontinued operations, before income taxes — — — 3 Loss on sale of discontinued operations — — — (503) Total loss from discontinued operations, before income taxes — — — (500) Income tax benefit on discontinued operations — — — 224 Loss from discontinued operations, net of tax $ — $ — $ — $ (276)
3DMT
Schedule of discontinued operations results	Financial information for discontinued operations for the three and nine months ended March 31, 2019 and April 1, 2018 are as follows (in thousands): For the three months ended For the nine months ended March 31, 2019 April 1, 2018 March 31, 2019 April 1, 2018 Sales $ 204 $ 415 $ 872 $ 2,205 Cost of sales (742) (989) (2,134) (2,621) Gross profit (538) (574) (1,262) (416) Selling, general and administrative (223) (199) (626) (566) Loss from discontinued operations, before income taxes (761) (773) (1,888) (982) Interest expense (7) (14) (37) (65) Other expense, net (2,237) — (2,634) 2 Total loss from discontinued operations, before income taxes (3,005) (787) (4,559) (1,045) Income tax benefit on discontinued operations — — — — Loss from discontinued operations, net of tax $ (3,005) $ (787) $ (4,559) $ (1,045)
Schedule of assets and liabilities classified as held for sale	The condensed consolidated balance sheets for March 31, 2019 and June 30, 2018 include assets related to discontinued operations as follows (in thousands): March 31, 2019 June 30, 2018 Current assets: Accounts receivable, net $ — $ 148 Inventories, net — 225 Prepaid expenses and other current assets — 174 Total current assets of discontinued operations — 547 Property and equipment, net — 3,101 Other Assets — 26 Total assets of discontinued operations $ — $ 3,674 Current liabilities: Accounts payable and accrued expenses $ — $ 449 Capital lease obligations, current portion — 973 Total current liabilities of discontinued operations — 1,422 Capital lease obligations, net of current portion — 462 Total liabilities of discontinued operations $ — $ 1,884
Schedule of cash flows of discontinued operations	March 31, 2019 April 1, 2018 Net Cash Used in Operating Activities $ 1,432 $ 530 Net Cash Used in Investing Activities — 45 Net Cash Used in Financing Activities 828 831

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Mar. 31, 2019
Inventory
Schedule of inventories	Inventories consisted of the following (in thousands): March 31, 2019 June 30, 2018 Raw materials and supplies $ 5,442 $ 5,414 Work-in-process 6,739 5,907 Finished goods 4,011 3,144 16,192 14,465 Reserve for obsolescence (1,528) Inventory of discontinued operations — (225) $ 14,664 $ 12,102

Property and Equipment (Tables)

Property and Equipment (Tables)	9 Months Ended
	Mar. 31, 2019
Property and Equipment
Schedule of property and equipment	Property and equipment consisted of the following (in thousands): Depreciable Life March 31, June 30, (in years) 2019 2018 Land — $ 1,264 $ 1,264 Building and improvements 7 - 40 18,326 18,188 Machinery and equipment 3 - 12 45,317 42,899 Office furniture and equipment 3 - 10 1,639 1,267 Construction-in-process — 1,156 3,910 Assets acquired under capital lease 5,654 2,735 73,356 Accumulated depreciation (36,600) (32,124) Accumulated amortization on capital leases (1,687) (1,260) $ 35,069 $

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Mar. 31, 2019
Goodwill and Intangible Assets
Summary of intangible assets	The following table summarizes the Company's intangible assets (in thousands): As of March 31, 2019 As of June 30, 2018 Gross Gross Carrying Accumulated Net Carrying Carrying Accumulated Net Carrying Intangible assets: Amount Amortization Amount Amount Amortization Amount Patents and tradenames $ 3,418 (1,116) $ 2,302 $ 3,418 $ (945) $ 2,473 Customer relationships 24,077 (12,653) 11,424 24,077 (10,838) 13,239 Non-compete agreements 3,654 (3,642) 12 3,654 (3,096) 558 Total $ 31,149 $ (17,411) $ 13,738 $ 31,149 $ (14,879) $ 16,270
Schedule of estimated future amortization expense of intangible assets	Estimated future amortization expense for the next five years as of March 31 is as follows (in thousands): Fiscal Years Amount Remainder of 2019 $ 660 2020 2,636 2021 2,636 2022 2,636 2023 2,636 Thereafter 2,534 Total $ 13,738

Debt (Tables)

Debt (Tables)	9 Months Ended
	Mar. 31, 2019
Debt
Schedule of long-term debt payable	Long-term debt payable consists of the following (in thousands): Balance as of March 31, 2019 June 30, 2018 Senior secured revolving loan $ 10,926 $ 5,692 Senior secured mortgage-based term loans 17,179 18,765 Subordinated term loan 15,000 15,000 Total debt 43,105 39,457 Unamortized deferred financing costs (486) (723) Total debt, net 42,619 38,734 Current portion of long-term debt, net of unamortized deferred financing costs (1,604) (1,721) Long-term debt, net of current portion and unamortized deferred financing costs $ 41,015 $ 37,013
Schedule of future debt payments	The following schedule represents the Company’s future debt payments as of March 31, 2019 (in thousands): Remainder of 2019 $ 219 2020 1,772 2021 41,114 2022 — Total $ 43,105

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Mar. 31, 2019
Segment Information
Summary of segment information	Summarized segment information for the three and nine months ended March 31, 2019 and April 1, 2018 is as follows (in thousands): Three months ended Nine months ended March 31, April 1, March 31, April 1, 2019 2018 2019 2018 Sales: Precision Components Group $ 15,032 $ 16,248 $ 46,667 $ 43,650 Stamping Group 4,824 4,798 14,661 13,909 Consolidated sales $ 19,856 $ 21,046 $ 61,328 $ 57,559 Operating costs: Precision Components Group $ 16,665 $ 16,747 $ 47,600 $ 47,369 Stamping Group 5,757 4,910 16,328 14,657 Consolidated operating costs $ 22,422 $ 21,657 $ 63,928 $ 62,026 Segment operating income (loss): Precision Components Group $ $ $ $ Stamping Group Corporate (1) (770) Total segment operating loss $ $ $ $ Interest expense, net (857) Other income (expense), net 103 (104) 193 24 Non-operating expense Consolidated loss before income taxes $ $ $ $ Corporate expense includes compensation and benefits, insurance, legal, accounting, consulting, and board of directors fees.

Significant Customers (Tables)

Significant Customers (Tables)	9 Months Ended
	Mar. 31, 2019
Significant Customers
Schedule of sales and accounts receivable customer concentration risk	Percentage of Sales Three months ended Nine months ended March 31, April 1, March 31, April 1, Customer 2019 2018 2019 2018 1 (a) 8.0 % 11.7 % 11.4 % 8.6 % 2 (b) 10.7 % 8.2 % 10.8 % 8.9 % 3 (a) 9.6 % 6.0 % 9.1 % 7.9 % 4 (a) 6.6 % 12.3 % 8.8 % 8.7 % 5 (b) 5.8 % * % * % * % Total 40.7 % 38.2 % 40.1 % 34.1 % * Customer represented less than 5% of sales for the periods presented. (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 and additional customers with holdings above 5% are as follows: Percentage of Receivables March 31, June 30, Customer 2019 2018 1 6.8 % 8.6 % 2 8.2 % 8.8 % 3 10.4 % ** % 4 ** % 11.5 % 5 ** 5.3 % 6 6.0 % ** 7 5.1 ** Total 36.5 % 34.2 % ** Customer represented less than 5% of accounts receivable for the periods presented.

Nature of Operations and Basi_2

Nature of Operations and Basis of Presentation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Apr. 01, 2018	Mar. 31, 2019	Apr. 01, 2018
Correction of immaterial errors
Gross Profit	$ (230)	$ 1,681	$ 4,370	$ 2,575
Basis of Presentation
Length of interim quarterly reporting periods			91 days
Adjustment
Correction of immaterial errors
Gross Profit			$ 1,000

Significant Accounting Polici_3

Significant Accounting Policies (Details) $ in Millions	9 Months Ended
	Mar. 31, 2019USD ($)item
Revenue recognition
Number of revenue streams | item	2
Financing component - practical expedient	true
Revenue recognized that was in deferred revenue | $	$ 0.6

Divestitures - GF&F Sale (Detai

Divestitures - GF&F Sale (Details) - USD ($) $ in Thousands	Sep. 15, 2017	Apr. 01, 2018	Jun. 30, 2018
Less:
Inventory			$ 225
GF&F | Discontinued Operations, Disposed of by Sale | QMI
Discontinued Operations
Gross proceeds	$ 3,000
Less:
Property and equipment, net	181
Accounts receivable	561
Inventory	882
Other current assets	42
Accounts payable and accrued expenses	(269)
Total net assets disposed	1,397
Goodwill	1,712
Transaction costs	394
Loss on sale of discontinued operations, before income taxes	$ (503)	$ (503)

Divestitures - GF&F Operation R

Divestitures - GF&F Operation Results (Details) - USD ($) $ in Thousands	Sep. 15, 2017	Mar. 31, 2019	Apr. 01, 2018	Mar. 31, 2019	Apr. 01, 2018
Financial data
Income (loss) from discontinued operations, net of tax		$ (3,005)	$ (787)	$ (4,559)	$ (1,321)
GF&F | QMI | Discontinued Operations, Disposed of by Sale
Financial data
Sales					726
Cost of sales					(615)
Gross profit					111
Selling, general and administrative					(108)
Income (loss) from discontinued operations, before income taxes					3
Loss on sale of discontinued operations, before income taxes	$ (503)				(503)
Total income (loss) from discontinued operations, before income taxes					(500)
Income tax benefit on discontinued operations					224
Income (loss) from discontinued operations, net of tax					$ (276)

Divestitures - 3DMT Discontinue

Divestitures - 3DMT Discontinued Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Apr. 01, 2018	Mar. 31, 2019	Apr. 01, 2018
Financial data
Income (loss) from discontinued operations, net of tax	$ (3,005)	$ (787)	$ (4,559)	$ (1,321)
3DMT | Discontinued Operations, Disposed of by Sale
Financial data
Sales	204		872
Cost of sales	(742)		(2,134)
Gross profit	(538)		(1,262)
Selling, general and administrative	(223)		(626)
Income (loss) from discontinued operations, before income taxes	(761)		(1,888)
Interest expense	(7)		(37)
Other expense, net	(2,237)		(2,634)
Total income (loss) from discontinued operations, before income taxes	(3,005)		(4,559)
Income (loss) from discontinued operations, net of tax	$ (3,005)		$ (4,559)
3DMT | Discontinued Operations, Held-for-sale
Financial data
Sales		415		2,205
Cost of sales		(989)		(2,621)
Gross profit		(574)		(416)
Selling, general and administrative		(199)		(566)
Income (loss) from discontinued operations, before income taxes		(773)		(982)
Interest expense		(14)		(65)
Other expense, net				2
Total income (loss) from discontinued operations, before income taxes		(787)		(1,045)
Income (loss) from discontinued operations, net of tax		$ (787)		$ (1,045)

Divestitures - 3DMT Balance She

Divestitures - 3DMT Balance Sheet (Details) $ in Thousands	Jun. 30, 2018USD ($)
Current assets:
Inventories, net	$ 225
Total current assets of discontinued operations	547
Current liabilities
Total current liabilities of discontinued operations	1,422
3DMT | Discontinued Operations, Held-for-sale
Current assets:
Accounts receivable, net	148
Inventories, net	225
Prepaid expenses and other current assets	174
Total current assets of discontinued operations	547
Property and equipment, net	3,101
Other assets	26
Total assets of discontinued operations	3,674
Current liabilities
Accounts payable and accrued expenses	449
Capital lease obligations, current portion	973
Total current liabilities of discontinued operations	1,422
Capital lease obligations, net of current portion	462
Total liabilities of discontinued operations	$ 1,884

Divestitures - 3DMT Cash Flows

Divestitures - 3DMT Cash Flows (Details) - 3DMT - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2019	Apr. 01, 2018
Discontinued Operations, Disposed of by Sale
Discontinued operations - cash flows
Net Cash Used in Operating Activities	$ 1,432
Net Cash Used in Financing Activities	$ 828
Discontinued Operations, Held-for-sale
Discontinued operations - cash flows
Net Cash Used in Operating Activities		$ 530
Net Cash Used in Investing Activities		45
Net Cash Used in Financing Activities		$ 831

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jun. 30, 2018
Inventory
Raw materials and supplies	$ 5,442	$ 5,414
Work-in-process	6,739	5,907
Finished goods	4,011	3,144
Inventories, gross	16,192	14,465
Reserve for obsolescence	(1,528)	(2,138)
Inventory of discontinued operations		(225)
Inventories, net	$ 14,664	$ 12,102

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Apr. 01, 2018	Mar. 31, 2019	Apr. 01, 2018	Jun. 30, 2018
Property and equipment
Property and equipment, gross	$ 73,356		$ 73,356		$ 70,263
Assets acquired under capital lease	5,654		5,654		2,735
Accumulated depreciation	(36,600)		(36,600)		(32,124)
Accumulated amortization on capital leases	(1,687)		(1,687)		(1,260)
Property and equipment, net	35,069		35,069		36,879
Depreciation expense	1,800	$ 1,700	5,100	$ 5,100
Capital expenditures			1,174	4,432
Proceeds from debt issuance			56,276	$ 74,956
Land
Property and equipment
Property and equipment, gross	1,264		1,264		1,264
Building and improvements
Property and equipment
Property and equipment, gross	18,326		$ 18,326		18,188
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	45,317		$ 45,317		42,899
Machinery and equipment | Minimum
Property and equipment
Depreciable Life			3 years
Machinery and equipment | Maximum
Property and equipment
Depreciable Life			12 years
Office furniture and equipment
Property and equipment
Property and equipment, gross	1,639		$ 1,639		1,267
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	$ 1,156		$ 1,156		$ 3,910

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Goodwill (Details) $ in Millions	Mar. 31, 2019USD ($)
Precision Components Group
Goodwill
Goodwill	$ 6.4

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Intangible Assets Summary and Future Amortization (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Apr. 01, 2018	Mar. 31, 2019	Apr. 01, 2018	Jun. 30, 2018
Intangible assets
Gross Carrying Amount	$ 31,149		$ 31,149		$ 31,149
Accumulated Amortization	(17,411)		(17,411)		(14,879)
Net Carrying Amount	13,738		13,738		16,270
Amortization expense	800	$ 800	2,500	$ 2,500
Estimated future amortization expense
2019	660		660
2020	2,636		2,636
2021	2,636		2,636
2022	2,636		2,636
2023	2,636		2,636
Thereafter	2,534		2,534
Net Carrying Amount	13,738		13,738		16,270
Impairments of long-lived assets	0	$ 0	$ 0	$ 0
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		$ 3,418		3,418
Accumulated Amortization	(1,116)		(1,116)		(945)
Net Carrying Amount	2,302		2,302		2,473
Estimated future amortization expense
Net Carrying Amount	2,302		2,302		2,473
Customer relationships
Intangible assets
Gross Carrying Amount	24,077		24,077		24,077
Accumulated Amortization	(12,653)		(12,653)		(10,838)
Net Carrying Amount	11,424		11,424		13,239
Estimated future amortization expense
Net Carrying Amount	11,424		11,424		13,239
Non-compete agreements
Intangible assets
Gross Carrying Amount	3,654		3,654		3,654
Accumulated Amortization	(3,642)		(3,642)		(3,096)
Net Carrying Amount	12		12		558
Estimated future amortization expense
Net Carrying Amount	$ 12		$ 12		$ 558

Debt - Long-term Debt Payable (

Debt - Long-term Debt Payable (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jun. 30, 2018
Debt
Total debt	$ 43,105	$ 39,457
Unamortized deferred financing costs	(486)	(723)
Total debt, net	42,619	38,734
Current portion of long-term debt, net of unamortized deferred financing costs	(1,604)	(1,721)
Long-term debt, net of current portion and unamortized deferred financing costs	41,015	37,013
Senior Secured Revolving Loan
Debt
Total debt	10,926	5,692
Senior secured mortgage-based term loans
Debt
Total debt	17,179	18,765
Subordinated term loan
Debt
Total debt	$ 15,000	$ 15,000

Debt - Senior Credit Agreement

Debt - Senior Credit Agreement (Details) $ in Thousands	May 15, 2019USD ($)	Nov. 12, 2017USD ($)	Sep. 29, 2016USD ($)	Apr. 12, 2019USD ($)	Mar. 31, 2019USD ($)	Feb. 12, 2019
Junior Revolving Credit Facility | QMI
Debt
Maximum borrowing capacity	$ 7,500
Loan amount	6,500
Term bridge loan
Debt
Loan amount				$ 1,000
Senior ABL Credit Facility
Debt
Minimum revolving credit availability after the initial junior capital infusion is completed		$ 3,500
Decrease in borrow base		$ 1,250
Fixed charge ratio						1.10
Minimum liquidity					$ 1,750
Senior ABL Credit Facility | Federal Funds Rate
Debt
Spread on variable rate basis (as a percent)			0.50%
Senior ABL Credit Facility | 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			$ 4,200
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	$ 17,500		$ 25,000		25,000
Commitment fees (as a percent)			0.375%
Extension of maturity of debt if certain conditions are met	5 years
Senior Secured Revolving Loan | Senior Secured Revolving Loan
Debt
Amount available					$ 2,000
Term Loan
Debt
Loan amount			$ 17,500
Extension of maturity of debt if certain conditions are met	10 years

Debt - Subordinated Term Loan (

Debt - Subordinated Term Loan (Details) - USD ($)	Nov. 10, 2014	May 15, 2019	May 04, 2019	May 03, 2019	Apr. 12, 2019
Subordinated term loan | Senior ABL Credit Facility
Debt
Availability requirement			$ 2,975,000	$ 1,487,500
Subordinated term loan | Firmament | Lender indirectly related to an officer and director
Debt
Loan amount	$ 20,000,000
Maturity term	5 years
Interest rate (as a percent)	11.00%
Interest rate increase upon an event of default (as a percent)	2.00%
Unsecured debt
Debt
Maximum borrowing capacity		$ 1,000,000
Unsecured debt | Lender indirectly related to an officer and director
Debt
Maximum borrowing capacity					$ 575,000
Junior Revolving Credit Facility | QMI
Debt
Loan amount		$ 6,500,000
Interest rate (as a percent)		4.50%
Maximum borrowing capacity		$ 7,500,000

Debt - Loan Contract (Details)

Debt - Loan Contract (Details) $ in Thousands	Mar. 31, 2016EUR (€)	Mar. 31, 2016USD ($)	Mar. 23, 2016EUR (€)	Mar. 31, 2019USD ($)	Apr. 01, 2018USD ($)
Debt
Proceeds from debt issuance | $				$ 56,276	$ 74,956
AFT Hungary | Loan Contract | Erste Bank Hungary
Debt
Loan amount			€ 4,000,000
Proceeds from debt issuance	€ 4,000,000
Interest rate (as a percent)			0.98%
Semi-annual payment of debt			€ 400,000
Frequency of payments			semi-annual
AFT Hungary | Loan Contract | Erste Bank Hungary | Amended & Restated Credit Agreement
Debt
Repayment of debt obligations | $		$ 3,000

Debt - Future Debt Payments (De

Debt - Future Debt Payments (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jun. 30, 2018
Future debt payments:
Remainder of 2019	$ 219
2020	1,772
2021	41,114
Total	$ 43,105	$ 39,457

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	Jan. 01, 2018	Dec. 31, 2017	Jun. 30, 2017	Mar. 31, 2019	Jun. 30, 2018
Income tax receivable
Current income tax receivable				$ 0.1	$ 0.5
Long-term income tax receivable				0.2
Uncertain tax positions					$ 1
Tax Reform Act
Federal income tax rate	21.00%		35.00%
Income tax expense due to remeasurement of deferred tax assets and liabilities		$ 1.4
Income tax benefit due to reduction in the valuation allowance previously recognized on AMT credit carryforwards		$ (0.3)
Other Long-term Liabilities
Income tax receivable
Uncertain tax positions				$ 0.1

Earnings Per Share (Details)

Earnings Per Share (Details) - shares	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Apr. 01, 2018	Mar. 31, 2019	Apr. 01, 2018
Earnings Per Share
Potentially dilutive stock options	91,168	43,938	66,179	85,316

Share-Based Compensation (Detai

Share-Based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Apr. 01, 2018	Mar. 31, 2019	Apr. 01, 2018
Stock-based compensation
Compensation expense			$ 229	$ 484
Unrecognized compensation cost	$ 400		$ 400
Weighted-average period that cost is expected to be recognized			2 years 3 months 18 days
Selling, general and administrative costs
Stock-based compensation
Compensation expense	$ 100	$ 100	$ 200	$ 500

Commitments and Contingencies (

Commitments and Contingencies (Details) - Capital lease agreements	Mar. 31, 2019
Minimum
Commitments and contingencies
Interest rate (as a percent)	2.90%
Maximum
Commitments and contingencies
Interest rate (as a percent)	8.72%

Commitments and Contingencies -

Commitments and Contingencies - Legal Matters (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019USD ($)item
Legal matters
Number of legal matters settled | item	2
Amount paid in settlement for both matters	$ 0.5
Accrued payable for legal matters	$ 0.5

Segment Information - Summarize

Segment Information - Summarized (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019USD ($)	Apr. 01, 2018USD ($)	Mar. 31, 2019USD ($)segment	Apr. 01, 2018USD ($)	Jun. 30, 2018USD ($)
Segment information
Reportable business segments | segment			2
Sales	$ 19,856	$ 21,046	$ 61,328	$ 57,559
Operating costs	22,422	21,657	63,928	62,026
Segment operating loss	(3,139)	(1,381)	(5,018)	(7,159)
Interest expense, net	(936)	(857)	(2,765)	(2,744)
Other income, net	103	(104)	193	24
Non-operating expense	(833)	(961)	(2,572)	(2,720)
Loss before income taxes	(3,972)	(2,342)	(7,590)	(9,879)
Depreciation and amortization			7,707	7,630
Assets	83,190		83,190		$ 89,933
Corporate
Segment information
Segment operating loss	(573)	(770)	(2,418)	(2,692)
Precision Components Group | Total segments
Segment information
Sales	15,032	16,248	46,667	43,650
Operating costs	16,665	16,747	47,600	47,369
Segment operating loss	(1,633)	(499)	(933)	(3,719)
Stamping Group | Total segments
Segment information
Sales	4,824	4,798	14,661	13,909
Operating costs	5,757	4,910	16,328	14,657
Segment operating loss	$ (933)	$ (112)	$ (1,667)	$ (748)

Significant Customers (Details)

Significant Customers (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2019	Apr. 01, 2018	Mar. 31, 2019	Apr. 01, 2018	Jun. 30, 2018
Significant customers
Concentration percentage, disclosure threshold			5.00%	5.00%
Customers | Sales
Significant customers
Concentration percentage	40.70%	38.20%	40.10%	34.10%
Customers | Receivables
Significant customers
Concentration percentage			36.50%		34.20%
Customers | Receivables | Customer 1
Significant customers
Concentration percentage			6.80%		8.60%
Customers | Receivables | Customer 2
Significant customers
Concentration percentage			8.20%		8.80%
Customers | Receivables | Customer 3
Significant customers
Concentration percentage			10.40%
Customers | Receivables | Customer 4
Significant customers
Concentration percentage					11.50%
Customers | Receivables | Customer 5
Significant customers
Concentration percentage					5.30%
Customers | Receivables | Customer 6
Significant customers
Concentration percentage			6.00%
Customers | Receivables | Customer 7
Significant customers
Concentration percentage			5.10%
Precision Components Group | Customers | Sales | Customer 1
Significant customers
Concentration percentage	8.00%	11.70%	11.40%	8.60%
Precision Components Group | Customers | Sales | Customer 3
Significant customers
Concentration percentage	9.60%	6.00%	9.10%	7.90%
Precision Components Group | Customers | Sales | Customer 4
Significant customers
Concentration percentage	6.60%	12.30%	8.80%	8.70%
Stamping Group | Customers | Sales | Customer 2
Significant customers
Concentration percentage	10.70%	8.20%	10.80%	8.90%
Stamping Group | Customers | Sales | Customer 5
Significant customers
Concentration percentage	5.80%

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Events - USD ($)	May 14, 2019	Apr. 18, 2019	Apr. 12, 2019
Subsequent Events
Number of consecutive days the bid price of the Company has been below the Minimum Bid Requirement		30 days
Minimum Bid Requirement (price per share)		$ 1
Period of time following notification of noncompliance (in days)		180 days
Number of consecutive business days the closing bid price is in compliance		10 days
Additional compliance period (in days)		180 days
Mr. Willman
Subsequent Events
Annual salary	$ 200,000
Mr. Willman | Minimum
Subsequent Events
Potential bonus	80,000
Mr. Willman | Maximum
Subsequent Events
Potential bonus	$ 475,000
Unsecured debt
Subsequent Events
Interest rate (as a percent)			4.50%