Document And Entity Information
Document And Entity Information | 3 Months Ended |
Sep. 30, 2020shares | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | ESCALON MEDICAL CORP. |
Entity Central Index Key | 0000862668 |
Current Fiscal Year End Date | --06-30 |
Entity Filer Category | Non-accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Sep. 30, 2020 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Entity Small Business | true |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 7,415,329 |
Entity Interactive Data Current | Yes |
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Sep. 30, 2020 | Jun. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 1,365,954 | $ 825,958 |
Restricted Cash, Current | 255,475 | 255,281 |
Accounts receivable, net | 1,045,537 | 1,312,935 |
Inventory, net | 1,584,961 | 1,785,030 |
Other current assets | 178,820 | 154,193 |
Total current assets | 4,430,747 | 4,333,397 |
Property and equipment, net | 90,824 | 97,214 |
Operating Lease, Right-of-Use Asset | 1,041,665 | 1,107,127 |
Finite-Lived Intangible Assets, Net | 117,137 | 122,050 |
Deposits Assets, Noncurrent | 62,792 | 62,789 |
Total assets | 5,743,165 | 5,722,577 |
Current liabilities: | ||
Short-term Debt | 201,575 | 201,575 |
Other Notes Payable, Current | 3,491 | 3,401 |
Unsecured Debt, Current | 304,664 | 221,297 |
Secured Debt, Current | 942 | 0 |
Accounts payable | 919,567 | 760,621 |
Accrued expenses | 814,062 | 681,047 |
Interest Payable, Current | 112,389 | 112,389 |
Operating Lease, Liability, Current | 273,153 | 278,634 |
Deferred Revenue, Current | 467,500 | 516,053 |
Liabilities of discontinued operations | 93,654 | 89,990 |
Total current liabilities | 3,190,997 | 2,865,007 |
Other Notes Payable, Noncurrent | 10,524 | 11,503 |
Operating Lease, Liability, Noncurrent | 837,108 | 896,533 |
Liabilities, Other than Long-term Debt, Noncurrent | 44,736 | 8,872 |
Total long-term liabilities | 1,236,762 | 1,345,611 |
Total liabilities | 4,427,759 | 4,210,618 |
Shareholders equity: | ||
Series A convertible preferred stock, $0.001 par value; 2,000,000 shares authorized;2,000,000 issued and outstanding | 645,000 | 645,000 |
Common stock, $0.001 par value; 35,000,000 shares authorized; 7,415,329 shares issued and outstanding | 7,415 | 7,415 |
Additional paid-in capital | 69,702,043 | 69,702,043 |
Accumulated deficit | (69,039,052) | (68,842,499) |
Total shareholders' equity | 1,315,406 | 1,511,959 |
Total liabilities and shareholders' equity | 5,743,165 | 5,722,577 |
Payroll Protection Program Loan [Member] | ||
Current liabilities: | ||
Unsecured Long-term Debt, Noncurrent | 195,336 | 278,703 |
Secured Debt [Member] | ||
Current liabilities: | ||
Secured Debt, Current | $ 149,058 | $ 150,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2020 | Jun. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred Stock, Shares Issued | 2,000,000 | 2,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 35,000,000 | 35,000,000 |
Common stock, shares issued | 7,415,329 | 7,415,329 |
Common stock, shares outstanding | 7,415,329 | 7,415,329 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) | 3 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue from External Customer [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 2,413,794 | $ 2,287,988 |
Costs and expenses: | ||
Cost of Goods and Services Sold | 1,503,869 | 1,176,670 |
Marketing, general and administrative | 892,177 | 999,427 |
Research and development | 209,322 | 245,638 |
Total costs and expenses | 2,605,368 | 2,421,735 |
Loss from operations | (191,574) | (133,747) |
Other (expense) income: | ||
Other Nonoperating Income (Expense) | 0 | 758,021 |
Interest income | 539 | 1,083 |
Interest expense | (5,518) | (3,984) |
Total other (expense) income | (4,979) | 755,120 |
Net (loss) income | (196,553) | 621,373 |
Preferred Stock Dividends, Income Statement Impact | 12,970 | 13,006 |
Net Income (Loss) Available to Common Stockholders, Basic | $ (209,523) | $ 608,367 |
Net income (loss) per share | ||
Earnings (Loss) Per Share, Basic | $ (0.03) | $ 0.08 |
Earnings (Loss) Per Share, Diluted | $ (0.03) | $ 0.05 |
Weighted average shares - basic | 7,415,329 | 7,415,329 |
Weighted average shares - diluted | 7,415,329 | 12,188,449 |
Product [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 2,184,256 | $ 2,052,779 |
Service [Member] | ||
Revenue from External Customer [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 229,538 | $ 235,209 |
Consolidated Statements Of Shar
Consolidated Statements Of Shareholders' Equity and Comprehensive Loss - USD ($) | Total | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Preferred Stock, Shares Outstanding | 2,000,000 | ||||
Preferred Stock, Value, Issued | $ 645,000 | ||||
Balance at Jun. 30, 2019 | $ 2,162,239 | $ 7,415 | $ 69,702,043 | $ (68,192,219) | |
Balance, shares at Jun. 30, 2019 | 7,415,329 | ||||
Net (loss) income | 621,373 | $ 0 | $ 0 | 0 | 621,373 |
Balance at Sep. 30, 2019 | 2,783,612 | $ 7,415 | 69,702,043 | (67,570,846) | |
Balance, shares at Sep. 30, 2019 | 7,415,329 | ||||
Preferred Stock, Shares Outstanding | 2,000,000 | ||||
Preferred Stock, Value, Issued | $ 645,000 | ||||
Preferred Stock, Shares Outstanding | 2,000,000 | ||||
Preferred Stock, Value, Issued | 645,000 | $ 645,000 | |||
Balance at Jun. 30, 2020 | 1,511,959 | $ 7,415 | 69,702,043 | (68,842,499) | |
Balance, shares at Jun. 30, 2020 | 7,415,329 | ||||
Net (loss) income | (196,553) | $ 0 | $ 0 | 0 | (196,553) |
Balance at Sep. 30, 2020 | $ 1,315,406 | $ 7,415 | $ 69,702,043 | $ (69,039,052) | |
Balance, shares at Sep. 30, 2020 | 7,415,329 | ||||
Preferred Stock, Shares Outstanding | 2,000,000 | ||||
Convertible Preferred Stock, Shares Issued upon Conversion | 2.15 | ||||
Preferred Stock, Value, Issued | $ 645,000 | $ 645,000 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) | 3 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash Flows from Operating Activities: | ||
Net (loss) income | $ (196,553) | $ 621,373 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization | 11,303 | 11,906 |
Other Nonoperating Income (Expense) | 0 | (758,021) |
Change in operating assets and liabilities: | ||
Increaser(Decrease) in Accounts Receivable | 267,398 | 141,000 |
Increase (Decrease) in Inventories | 200,069 | (21,820) |
Increase (Decrease) in Other Operating Assets | (24,630) | (4,585) |
Increase (Decrease) in Other Noncurrent Assets | 0 | (10,873) |
Increase (Decrease) in Deferred Revenue | (48,553) | (333) |
Increase (decrease) in liabilities of discontinued operations | 3,664 | (3,439) |
Increase (Decrease) in Accounts Payable | 158,946 | 24,851 |
Increase (Decrease) in Accrued Liabilities | 133,015 | 33,295 |
Change in accrued post-retirement benefits | 0 | (25,473) |
Payments for Leasing Costs | (73,754) | (82,910) |
Other Operating Activities, Cash Flow Statement | 74,310 | 82,195 |
Increase (Decrease) in Other Deferred Liability | 35,864 | 0 |
Net Cash Provided by (Used in) Operating Activities | 541,079 | 7,166 |
Net Cash provided by (used in) Financing Activities: | ||
Repayments of Notes Payable | (889) | (822) |
Net Cash Provided by (Used in) Financing Activities | (889) | (822) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 540,190 | 6,344 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 1,621,429 | |
Cash and cash equivalents, beginning of period | 1,365,954 | |
Restricted Cash | 255,475 | |
Cash, cash equivalent and restricted cash, end of period | 1,621,429 | |
Supplemental Schedule of Cash Flow Information: | ||
Interest Paid, Excluding Capitalized Interest, Operating Activities | $ 2,854 | $ 5,827 |
Organization and Description of
Organization and Description of Business | 3 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business and Business Conditions | Escalon Medical Corp. ("Escalon" or "Company") is a Pennsylvania corporation initially incorporated in California in 1987, and reincorporated in Pennsylvania in November 2001. Within this document, the “Company” collectively shall mean Escalon, which includes its division called "Trek" and its wholly owned subsidiaries: Sonomed, Inc. (“Sonomed”), Escalon Digital Solutions, Inc. (“EMI”), Escalon Holdings, Inc. (“EHI”), Escalon IP Holdings, Inc., and Sonomed IP Holdings, Inc. The Company operates in the healthcare market, specializing in the development, manufacture, marketing and distribution of medical devices and pharmaceuticals in the area of ophthalmology. The Company and its products are subject to regulation and inspection by the United States Food and Drug Administration (the “FDA”). The FDA and other government authorities require extensive testing of new products prior to sale and has jurisdiction over the safety, efficacy and manufacture of products, as well as product labeling and marketing. The unaudited condensed consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission, and reflect all adjustments (consisting of only normal and recurring adjustments) which are, in the opinion of management, necessary to present fairly the unaudited condensed consolidated financial information required herein. Certain information and note disclosures normally included in financial statement prepared in accordance with accounting principles generally accepted in the United Statements of America ("US GAAP") have been condensed or omitted pursuant to such rules and regulations. While management believes that the disclosures are adequate to make the information presented not misleading, it is suggested that these unaudited condensed consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company's Annual Report on Form 10-K filed with the Security and Exchange Commission for the fiscal year ended June 30, 2020. The results of operations for the three months ended September 30, 2020 are not necessarily indicative of the results to be expected for the full year. On March 11, 2020, the World Health Organization declared the outbreak of a coronavirus (COVID-19) a pandemic. This pandemic has had a significant impact on the global and domestics economy, and is likely to impact the operations of the Company. The Company has been assessing the impact of the COVID-19 pandemic on the business, including the impact on the financial condition and results of operations, financial resources, changes in accounting judgment as well as the impact on the supply and demand, etc. The Company is considered an essential business and has been able to maintain operations during the lockdown. The Company applied for and received $500,000 in April 2020 under the Payroll Protection Program (PPP loan) which will help reverse the negative impact in terms of the liquidity. The maturity date is two years from the date of the note. The interest rate is 1.00% per year. The Company remains in strong communications with the customers and there is no evidence showing that COVID-19 will greatly affect collection of accounts receivable as of date of this filing. However, the Company does not know the extent and duration of the impact of COVID-19 on its business due to the uncertainty about the spread of the virus. The Company’s common stock trades on the OTCQB Market under the symbol “ESMC.” |
Going concern (Notes)
Going concern (Notes) | 3 Months Ended |
Sep. 30, 2020 | |
Going concern [Abstract] | |
Liquidity Disclosure [Policy Text Block] | . Going Concern The Company’s operations are subject to a number of factors that can affect its operating results and financial condition. Such factors include, but are not limited to: the continuous enhancement of the current products, development of new products; changes in domestic and foreign regulations; ability of manufacture successfully; competition from products manufactured and sold or being developed by other companies; the price of, and demand for, the Company’s products and its ability to raise capital to support its operations. To date, the Company’s operations have not generated sufficient revenues to enable profitability. As of September 30, 2020, the Company had an accumulated deficit of $69.0 million , and incurred recurring losses from operations and incurred negative cash flows from operating activities in prior years. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. The accompanying unaudited condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. These unaudited condensed consolidated financial statements do not include any adjustments relating to the realization of the carrying value of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company's continuance as a going concern is dependent on its future profitability and on the on-going support of its shareholders, affiliates and creditors. In order to mitigate the going concern issues, the Company is actively pursuing business partnerships, managing its continuing operations, implementing cost-cutting measures and seeking to sell certain assets. The Company may not be successful in any of these efforts. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. Use of Estimates The preparation of financial statements in conformity with accounting principles generally affected in the US Generally Accepted Accounting Principles ("US GAAP") requires management to make estimates and assumptions that impact the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents For the purposes of reporting cash flows, the Company considers all cash accounts, which are not subject to withdrawal restrictions or penalties, and highly liquid investments with original maturities of 90 days or less to be cash and cash equivalents. From time to time cash balances exceed federal insurance limits. Restricted Cash As of September 30, 2020 and June 30, 2020 restricted cash included $255,475 and $ 255,281 respectively, which was pursuant to the requirements in the TD Bank Loan entered into June 2018 (see Note 7). Foreign Currency Translation The Company's functional currency is the US dollar. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Foreign currency transaction gains or losses included in net income (loss) were immaterial for the three months ended September 30, 2020 and 2019. Accounts Receivable Accounts receivable are recorded at net realizable value. The Company performs ongoing credit evaluations of customers’ financial condition and does not require collateral for accounts receivable arising in the normal course of business. The Company maintains allowances for potential credit losses based on the Company’s historical trends, specific customer issues and current economic trends. Accounts are written off against the allowance when they are determined to be uncollectible based on management’s assessment of individual accounts. The Company recorded an allowance for doubtful accounts of approximately $105,000 and $123,000 as of September 30, 2020 and June 30, 2020, respectively. Inventories Inventories include freight-in materials, labor and overhead costs, and are stated at the lower of cost (first-in, first-out) or net realizable value. The Company writes down its inventories as it becomes aware of any situation whereas the carrying amount exceeds the estimated realizable value based on assumptions about future demands and market conditions. Intangible Assets and Long-Lived Assets Intangible assets deemed to have indefinite lives (including trademark and trade names) are not amortized but, instead, are subject to an annual impairment assessment. Additionally, if events or conditions were to indicate the carrying value or a reporting unit may not be recoverable, the Company would evaluate the other intangible assets for impairment at that time. Long-lived assets including intangible assets deemed to have finite lives, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Impairment indicators include, among other conditions, cash flow deficits, historic or anticipated declines in revenue or operating profit or material adverse changes in the business climate that indicate that the carrying amount of an asset may be impaired. When impairment indicators are present, the recoverability of the asset is measured by comparing the carrying value of the asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the projected undiscounted cash flows from the asset are less than the carrying value of the asset the asset is considered to be impaired. The impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of the asset. The Company tests indefinite-life intangible assets for possible impairment on an annual basis at June 30, and at any other time events occur or circumstances indicate that the carrying amount of intangible assets may be impaired. During the three months ended September 30, 2020 and September 30, 2019, no impairments were recorded. Accrued Warranties The Company provides a limited one-year warranty against manufacturer’s defects on its products sold to customers. The Company’s standard warranties require the Company to repair or replace, at the Company’s discretion, defective parts during such warranty period. The Company accrues for its product warranty liabilities based on estimates of costs to be incurred during the warranty period, based on historical repair information for warranty costs. PPP Loans The Company's policy is to account for the PPP loan (See Note 8) as debt. The Company will continue to record the loan as debt until either (1) the loan is partially or entirely forgiven and the Company has been legally released , at which point the amount forgiven will be recorded as income or (2) the Company pays off the loan. Fair Value of Financial Instruments The carrying amounts for cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities approximate their fair value because of their short-term maturity. The Company determined that the carrying amount of the note payable and lease liabilities approximates fair value since such debt borrowing bears interest at the approximate current market rate. While the Company believes the carrying value of the assets and liabilities are reasonable, considerable judgment is used to develop estimates of fair value; thus the estimates are not necessarily indicative of the amounts that could be realized in a current market exchange. Revenue Recognition The Company recognizes revenue when its performance obligations with its customers have been satisfied. At contract inception, the Company determines if the contract is within the scope of Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers, and then evaluates the contract using the following five steps: (1) identify the contract with the customer; (2) identify the performance obligations; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only recognizes revenue to the extent that it is probable that a significant revenue reversal will not occur in a future period. The Company generates product revenue from the sale of medical device products and the sale and installation of the Company's AXIS image management system software. Revenue for service plans relate to the customer care plans for the Company’s equipment and AXIS image management system software. Revenue is recognized upon transfer of control of the promised goods or services to the customer for an amount that reflects the consideration that the Company expects to be entitled in exchange for those goods or services. The Company’s performance obligations are for product sales, installation of AXIS image management system software and customer care plans. The performance obligations are determined at contract inception based upon promises within the contract that are distinct. The product sales and installation of AXIS image management system software performance obligations are satisfied at a point in time, which is upon shipment for product sales and upon successful installation for the AXIS image management system. The performance obligation for customer care plans is satisfied over time as the customer receives and consumes the Company’s services. The Company invoices its customers upon shipment for product sales. For the installation of AXIS image management system software and customer care plans, the Company invoices its customers upon successful installation. Invoice payments are generally due within 30 days of invoice date. The transaction price is determined based on fixed consideration in the Company’s customer contracts and is recorded net of variable consideration. In determining the transaction price, a significant financing component does not exist since the timing from when the Company invoices its customers to when payment is received as it is less than one year. Revenue for product sales and installation of AXIS image management system software is recognized when delivered or installed. The customer care plan revenues are recognized proportionately over the service period, which is a 12-month period. The Company has elected the following practical expedients in applying ASC 606: • Unsatisfied Performance Obligations - all performance obligations relate to contracts with a duration of less than one year, the Company has elected to apply the optional exemption provided in ASC 606 and therefore, is not required to disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. • Contract Costs - all incremental customer contract acquisition costs are expensed as they are incurred as the amortization period of the asset that the Company otherwise would have recognized is one year or less in duration. • Significant Financing Component - the Company does not adjust the promised amount of consideration for the effects of a significant financing component as the Company expects, at contract inception, that the period between when the entity transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. • Sales Tax Exclusion from the Transaction Price - the Company excludes from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from the customer. • Shipping and Handling Activities - the Company elected to account for shipping and handling activities as a fulfillment cost rather than as a separate performance obligation. • Portfolio Approach - the Company applied the Portfolio Approach to contract reviews within its identified revenue streams that have similar characteristics and the Company believes this approach would not differ materially than if applying Topic 606 to each individual contract. Deferred Revenues The Company records deferred revenues when cash payments are received or due in advance of its performance. The Company’s deferred revenues relate to payments received for the customer care plans for a 12-month period. The consideration received is recognized monthly over the service period. (in thousands) Three Months Ended September 30, 2020 2019 Beginning of Period $ 516 $ 427 Additions 181 235 Revenue Recognized 230 235 End of Period $ 467 $ 427 Earnings (Loss) Per Share Earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the year. All outstanding stock options are considered potential common stock. All outstanding convertible preferred stock are considered common stock at the beginning of the period or at the time of issuance, if later, pursuant to the if-converted method. The dilutive effect, if any, of stock options is calculated using the treasury stock method. As of September, 2020 and 2019, the average market prices for the three-month period then ended are less than the exercise price of all the outstanding stock options and, therefore, the inclusion of the stock options would be anti-dilutive. In addition, since the effect of common stock equivalents is anti-dilutive with respect to losses, the convertible preferred stock has also been excluded from the Company’s computation of loss per common for the three-month period ended September 30, 2020. Therefore, basic and diluted loss per common share for the three-month period ended September 30, 2020 are the same. For the three-month period ended September 30, 2019, the if-converted method was used for the convertible preferred stock to calculate the dilutive earnings per share. For the Three Months Ended September 30, 2020 2019 Numerator: Numerator for basic (loss) earnings per share: Net (loss) income $ (196,553 ) $ 621,373 Undeclared dividends on preferred stock 12,970 13,006 Net (loss) income applicable to common shareholders $ (209,523 ) $ 608,367 Numerator for diluted earnings per share: Net (loss) income applicable to common shareholders $ (209,523 ) $ 608,367 Undeclared dividends on preferred stock — 13,006 Net (loss) income $ (209,523 ) $ 621,373 Denominator: Denominator for basic (loss) earnings per share - weighted average shares outstanding 7,415,329 7,415,329 Weighted average preferred stock converted to common stock — 4,773,120 Denominator for diluted (loss) earnings per share - weighted average and assumed conversion 7,415,329 — 12,188,449 Net (loss) income per share: Basic net (loss) income per share $ (0.03 ) $ 0.08 Diluted net (loss) income per share $ (0.03 ) $ 0.05 The following table summarizes convertible preferred stock and securities that, if exercised would have an anti-dilutive effect on earnings per share. For the Three Months Ended September 30, 2020 2019 Stock options 157,000 213,000 Convertible preferred stock 5,204,527 — Total potential dilutive securities not included in income per share 5,361,527 213,000 Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the unaudited condensed consolidated financial statements. Under this method, the Company determines deferred tax assets and liabilities on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize its deferred tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. As of September 30, 2020 and June 30, 2020, the Company has a fully recorded valuation allowance against its deferred tax assets. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company recognizes interest and penalties related to unrecognized tax benefits on the income tax expense line in the accompanying unaudited condensed consolidated statements of operations. As of September 30, 2020 and June 30, 2020, no accrued interest or penalties were required to be included on the related tax liability line in the unaudited condensed consolidated balance sheets. Leases The Company determines if an arrangement is a lease at the inception of a contract. Operating lease right-of-use ("ROU") assets are included in right-of-use assets on the unaudited condensed consolidated balance sheets. The current and long-term components of operating lease liabilities are included in the current portion of operating lease liabilities and operating lease liabilities, net of current portion, respectively on the unaudited condensed consolidated balance sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term. As most of the Company's leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. Certain leases may include options to extend or terminate the lease. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. New Accounting Pronouncements Recently Issued Accounting Standards The Company considers the applicability and impact of all accounting standards updates ("ASUs"). Management periodically reviews new accounting standards that are issued. New Accounting Pronouncements Not yet Adopted In June 2016 the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which adds a new Topic 326 to the Codification and removes the thresholds that companies apply to measure credit losses on financial instruments measured at amortized cost, such as loans, receivables, and held-to-maturity debt securities. The guidance in ASU 2016-13 is effective for “public business entities,” as defined, that are SEC filers for fiscal years and for interim periods with those fiscal years beginning after December 15, 2022. Early adoption of the guidance is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The adoption of this standard is not expected to have a material impact to the Company’s consolidated financial statements. |
Inventory (Notes)
Inventory (Notes) | 3 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | September 30, June 30, (in thousands) 2020 2020 Inventories, net: Raw Material $ 655 $ 613 Work-In-Process 139 323 Finished Goods 791 849 Total $ 1,585 $ 1,785 |
Discontinued operation (Notes)
Discontinued operation (Notes) | 3 Months Ended |
Sep. 30, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Discontinued Operations BH Holdings, S.A.S ("BHH") Drew Scientific, Inc. ("Drew"), an inactive subsidiary of the Company which was sold in 2012, has a controlling interest in BHH Holdings, S.A.S ("BHH). On January 12, 2012 BHH, initiated the filing of an insolvency declaration with the Tribunal de Commerce de Rennes, France ("Commercial Court"). The Commercial Court on January 18, 2012 opened the liquidation proceedings with continuation of BHH's activity for three months and named an administrator to manage BHH . Since Drew no longer had a controlling financial interest in BHH it was deconsolidated in the December 31, 2011 quarterly unaudited condensed consolidated financial statements and prior period amounts are presented as discontinued operations. Assets and liabilities of discontinued operations of BHH included in the unaudited condensed consolidated balance sheets are summarized as follows at September 30, 2020 and June 30, 2020 (in thousands): September 30, June 30, 2020 2020 Assets Total assets $ — $ — Liabilities Accrued lease termination costs 94 90 Total liabilities 94 90 Net liabilities of discontinued operations $ (94 ) $ (90 ) During fiscal year 2015 the Company was informed by French Counsel that the total amount claimed by the BHH landlord in the liquidation of BHH was approximately $86,000 . The Company did not have insight into the French liquidation process due to the Liquidator's reticence to communicate with the Company. As such, the Company had accrued the present value of the maximum amount potentially due under the lease guaranteed by the Company on behalf of BHH. The landlord's claim under liquidation of approximately $86,000 cannot be revisited by the landlord and can only be potentially increased by interest or sundry expenses. Beginning in 2016 any changes to this liability are included in continuing operations. As of September 30, 2020 and June 30, 2020 the liability was approximately $ 94,000 and $ 90,000 , respectively. |
BH Holdings, S.A.S [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | September 30, June 30, 2020 2020 Assets Total assets $ — $ — Liabilities Accrued lease termination costs 94 90 Total liabilities 94 90 Net liabilities of discontinued operations $ (94 ) $ (90 ) |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions and Preferred Stock On February 14, 2018, the Company entered into a Debt Exchange Agreement (the “Exchange Agreement”) with Richard DePiano, Sr.,(Mr. DePiano Sr.), the Company's former Chairman and DP Associates Inc. Profit-Sharing Plan of which Mr. DePiano Sr. is the sole owner and sole trustee (the “Holders”). Pursuant to the terms of the Exchange Agreement, effective February 15, 2018, the Holders exchanged a total of $645,000 principal amount of debt related to the accounts receivable factoring program the Company owes the Holders for 2,000,000 shares of Series A Convertible Preferred Stock (the “Preferred Stock”). Each share of Preferred Stock entitles the Holder thereof to 13 votes per share and will vote together with all other classes and series of stock of the Company as a single class on all actions to be taken by the Company’s stockholders. As a result of this voting power, the Holders as of September 30, 2020 beneficially own approximately 77.81% of the voting power on all actions to be taken by the Company’s shareholders. Subject to the terms and conditions of Preferred Stock, the holder of any share or shares of the Preferred Stock has the right, at its option at any time, to convert each such share of Preferred Stock (except that, upon any liquidation of the Company, the right of conversion will terminate at the close of business on the business day fixed for payment of the amounts distributable on the Preferred Stock) into 2.15 shares of Common Stock (the “Conversion Ratio”). The Conversion Ratio is subject to standard provisions for adjustment in the event of a subdivision or combination of the Company’s Common Stock and upon any reorganization or reclassification of the capital stock of the Company. If the Holders were to convert their shares of Preferred Stock into Common Stock at the Conversion Ratio the Holders would receive a total of 4,300,000 shares of Common Stock, or approximately 36.70% of the then outstanding shares of Common Stock assuming such conversion. Each outstanding share of the Preferred Stock accrues dividends calculated cumulatively at the annual rate of $.0258 per share (such amount subject to equitable adjustment in the event of any stock dividend, stock split, combination, reclassification other similar event), payable upon the earlier of (i) a liquidation, dissolution or winding up of the Company or (ii) conversion of the Preferred Stock into Common Stock. Upon either of such events, all such accrued and unpaid dividends, whether or not earned or declared, to and until the date of such event, will become immediately due and payable and will be paid in full. The dividends payable to the holders of the Preferred Stock is payable in cash or, at the election of any such holder, in a number of additional shares of Common Stock equal to the amount of the dividend expressed in dollars divided by the then applicable Conversion Ratio, described above. As of September 30, 2020 and June 30, 2020 the cumulative dividends payable is $135,679 ( $0.0678 per share) and $122,709 ( $0.0614 per share), respectively. Mr. DePiano Sr. passed away on October 3, 2019 and left a will by which he appointed Richard J. DePiano, Jr., the Chief Executive Officer of the Company, as executor. Richard DePiano Jr. was elected to serve as chairman of the Company's board. Mr. DePiano, Jr. qualified as executor and has control over the listed shares in his capacity as executor of Mr. DePiano Sr.'s estate. |
Line of credit (Notes)
Line of credit (Notes) | 3 Months Ended |
Sep. 30, 2020 | |
Line of Credit Facility [Line Items] | |
Debt Disclosure [Text Block] | Line of Credit On June 29, 2018 the Company entered a business loan agreement with TD bank receiving a line of credit evidenced by a promissory note of $250,000 . The interest is subject to change based on changes in an independent index which the Wall Street Journal Prime. The index rate at the date of the agreement is 5.000% per annum. Interest on the unpaid principal balance of the note is calculated using a rate of 0.740 percentage points over the index, adjusted if necessary for any minimum and maximum rate limitations, resulting in an initial rate of 5.740% per annum based on a year of 360 days. The interest rate was 6.24% as of September 30, 2020. The Company was required to put $250,000 in the TD bank savings account as collateral. Mr. Richard J. DePiano Sr., former Chairman of the Company executed a guarantee of the loan in favor of TD Bank. Mr. DePiano Sr. passed away on October 3, 2019, therefore the guarantee is now assumed by his estate. As of September 30, 2020 and June 30, 2020, the line of credit balance was $201,575 with TD bank. The line of credit interest expense was approximately $ 3,000 and $4,000 for the three months ended September 30, 2020 and 2019, respectively. |
Long term debt (Notes)
Long term debt (Notes) | 3 Months Ended |
Sep. 30, 2020 | |
Debt Instrument [Line Items] | |
Long-term Debt [Text Block] | Paycheck Protection Program ("PPP") loan On April 27, 2020, the Company entered into a PPP loan for $500,000 in connection with the CARES Act related to COVID-19. $ 304,664 of the PPP loan is classified as current. The promissory note has a fixed payment schedule, commencing seven months following the funding of the note and consisting of seventeen monthly payments of principal and interest, with the principal component of each payment based upon the level of amortization of principal over a two year period from the funding date. The PPP loan is unsecured. A final payment for the unpaid principal and accrued interest will be payable no later than April 26, 2022. The note will bear interest at a rate of 1.00% per annum and is deferred for the first six months of the loan. Major portions of the loan and accrued interest may qualify for loan forgiveness based on the terms of the program. No assurance is provided that the Company will in fact obtain forgiveness of the PPP loan in whole or in part. Economic Injury Disaster ("EIDL") Loan EIDL is designed to provide economic relief to businesses that are currently experiencing a temporary loss of revenue due to the Coronavirus (COVID-19) pandemic. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation to health care benefits, rent, utilities, and fixed debt payments. The Company received $150,000 EIDL loan. The annual interest rate is 3.75% . The payment term is 30 years and the monthly payment will be $731 .The EIDL loan is secured by the tangible and intangible personal property of the Company. The accrued interest as of September 30, 2020 is $1,406. The future annual principal amounts to be paid as of September 30, 2020 are as follows: Year ending June 30, EIDL Loan Payment 2021(remainder of 2021) $ 234 2022 2,870 2023 2,980 2024 3,094 2025 3,212 Thereafter 137,610 Total $ 150,000 Other Long-term Liabilities The CARES Act allows employers to defer the deposit and payment of the employer share of Social Security tax that would otherwise be due on or after March 27, 2020, and before January 1, 2021. The Company has deferred approximately $45,000 of the social security tax as of September 30, 2020. |
Concentration of credit risk (N
Concentration of credit risk (Notes) | 3 Months Ended |
Sep. 30, 2020 | |
Concentration Risk [Line Items] | |
Concentration Risk Disclosure [Text Block] | Concentration of Credit Risk Credit Risk Financial Instruments, which potentially subject the Company to concentration of credit risk, consist principally of cash and cash equivalents, restricted cash and trade receivables. Concentration of credit risk with respect to trade receivables is generally diversified due to the large number of entities comprising the Company's customer base and their dispersion across geographic areas principally within the United States and international. The Company routinely address the financial strength of its customer and, as a consequence, believes that its receivable credit risk exposure is limited. The Company does not require customers to post collateral. Major Customer One customer accounted for 21% of net sales during the three months ended September 30, 2020. One customer accounted for 13% of net sales during the three months ended September 30, 2019. As of September 30, 2020 the Company had one customer that represents 24% of the total accounts receivable balance. As of June 30, 2020 the Company had one customer that represents 18% of the total accounts receivable balance. Major Supplier The Company's three largest suppliers accounted for 33% , 16% and 13% of the total purchase for the three-month period ended September 30, 2020. The Company's two largest suppliers accounted for of total purchases for 15% and 25% of total purchase for the three-month period ended September 30, 2019. As of September 30, 2020 the Company had two suppliers that represents 34% and 13% of the total accounts payable balance. As of June 30, 2020 the Company had three suppliers that represent approximately 38% , 12% and 11% of the total accounts payable balance. Foreign Sales Domestic and international sales from continuing operations are as follows: ( in thousands) For the Three Months Ended September 30, 2020 2019 Domestic $ 1,542 63.9 % $ 1,467 64.1 % Foreign 872 36.1 % 821 35.9 % Total $ 2,414 100.0 % $ 2,288 100.0 % |
Retirement and post retirement
Retirement and post retirement plans (Notes) | 3 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Postemployment Benefit Plans, Policy [Policy Text Block] | Retirement and Post-Retirement Plans On June 23, 2005 the Company entered into a Supplemental Executive Retirement Benefit Agreement with its former Chairman, Mr. DePiano Sr.. The agreement provided for the payment of supplemental retirement benefits to the covered executive in the event of the covered executive’s termination of services. In January 2013 the covered executive retired and the Company was obligated to pay the executive $8,491 per month for life, with payments commencing the month after retirement. As of June 30, 2019 approximately $ 792,000 was accrued for Mr. DePiano Sr.'s retirement benefits. The amount represented the approximate present value of the supplemental retirement benefits awarded using a discount rate of 4.5% as of June 30, 2019. Mr. DePiano Sr. passed away on October 3, 2019. According to the agreement, the benefits terminate upon Mr. DePiano Sr.'s death. Therefore, the Company recognized a gain with the termination of the retirement benefit obligation of approximately $758,000 , which has been reported as other income for the three-month period ended September 30, 2019. |
Leases (Notes)
Leases (Notes) | 3 Months Ended |
Sep. 30, 2020 | |
Lease disclosure [Abstract] | |
Leases of Lessee Disclosure [Text Block] | September 30, June 30, Leases (operating) Classification on the Balance Sheet 2020 2020 Assets Operating lease ROU assets Right-of-use asset $ 1,041,665 $ 1,107,127 Liabilities Current Current portion of operating lease liabilities $ 273,153 $ 278,634 Non-current Operating lease liabilities $ 837,108 $ 896,533 The Company adopted ASC Topic 842-Leases as of July 1, 2019, using the cumulative effective adjustment method wherein the Company applied the new lease standard at adoption date. Accordingly, all periods prior to July 1, 2019 were presented in accordance with the previous ASC Topic 840, Leases, and no retrospective adjustments were made to the comparative periods presented. Adoption of ASC 842 resulted in an increase to total assets and liabilities due to the recording of operating lease ROU and operating lease liabilities of approximately $ 1,138,000 and $ 1,208,000 respectively, as of July 1, 2019. The adoption did not materially impact the Company's unaudited condensed consolidated statements of operations or cash flows. The Company determines if a contract contains a lease at inception. US GAAP requires that the Company's leases be evaluated and classified as operating or finance leases for financial reporting purposes. The classification evaluation begins at the commencement date and the lease term used in the evaluation includes the non-cancellable period for which the Company has the right to use the underlying asset, together with renewal option periods when the exercise of the renewal option is reasonable certain and failure to exercise such option which result in an economic penalty. The Company has operating leases for manufacturing, research and corporate office facilities and certain equipment. Leases with an initial term of 12 months or less are not recorded in the balance sheet. The Company has elected the practical expedient to account for each separate lease component of a contract and its associated non-lease components as a single lease component, thus causing all fixed payments to be capitalized. The Company also elected the package of practical expedients permitted within the new standard, which among other things, allows the Company to carry forward historical lease classification. Variable lease payment amounts that cannot be determined at the commencement of the lease such as increases in lease payments based on changes in index rates or usage, are not included in the ROU assets or liabilities. these are expensed as incurred and recorded as variable lease expense. ROU assets represent the Company's right to use an underlying asset during the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at commencement date based on the net present value of fixed lease payments over the lease term. The Company's lease term includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. As the Company's operating leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the comment date in determining the present value of future lease payments. The components of lease costs included in cost of goods sold and marketing, general and administrative costs were as follows: Three Months Ended September 30, 2020 2019 Operating lease costs: Fixed 93,861 104,449 Total: $ 93,861 $ 104,449 Supplemental cash flow information was as follows: Three Months Ended September 30, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases 89,800 99,569 Total $ 89,800 $ 99,569 Leases recorded on the balance sheet consist of the following: September 30, June 30, Leases (operating) Classification on the Balance Sheet 2020 2020 Assets Operating lease ROU assets Right-of-use asset $ 1,041,665 $ 1,107,127 Liabilities Current Current portion of operating lease liabilities $ 273,153 $ 278,634 Non-current Operating lease liabilities $ 837,108 $ 896,533 The table below reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable operating leases with terms of more than one year to the total operating lease liabilities recognized on the unaudited condensed consolidated balance sheets as of September 30, 2020: The aggregate future lease payments for operating leases as of September 30, 2020 were as follows: Operating 2021 (excluding the three months ending September 30, 2020) $ 245,356 2022 321,029 2023 262,579 2024 267,788 2025 141,282 Thereafter 2,728 Total lease payments 1,240,762 Less interest 130,501 Present value of lease liabilities $ 1,110,261 Average lease terms and discount rates were as follows: September 30, 2020 Weighted-average remaining lease terms (years) Operating leases 3.95 Weighted-average discount rate Operating leases 5.65 % |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Restrictions on Cash and Cash Equivalents [Table Text Block] | As of September 30, 2020 and June 30, 2020 restricted cash included $255,475 and $ 255,281 respectively, which was pursuant to the requirements in the TD Bank Loan entered into June 2018 (see Note 7). |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | The Company's functional currency is the US dollar. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. Foreign currency transaction gains or losses included in net income (loss) were immaterial for the three months ended September 30, 2020 and 2019. |
Principles of Consolidation | The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated. |
Use of Estimates | The preparation of financial statements in conformity with accounting principles generally affected in the US Generally Accepted Accounting Principles ("US GAAP") requires management to make estimates and assumptions that impact the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | For the purposes of reporting cash flows, the Company considers all cash accounts, which are not subject to withdrawal restrictions or penalties, and highly liquid investments with original maturities of 90 days or less to be cash and cash equivalents. From time to time cash balances exceed federal insurance limits. |
Fair Value of Financial Instruments | The carrying amounts for cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities approximate their fair value because of their short-term maturity. The Company determined that the carrying amount of the note payable and lease liabilities approximates fair value since such debt borrowing bears interest at the approximate current market rate. While the Company believes the carrying value of the assets and liabilities are reasonable, considerable judgment is used to develop estimates of fair value; thus the estimates are not necessarily indicative of the amounts that could be realized in a current market exchange. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when its performance obligations with its customers have been satisfied. At contract inception, the Company determines if the contract is within the scope of Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers, and then evaluates the contract using the following five steps: (1) identify the contract with the customer; (2) identify the performance obligations; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. The Company only recognizes revenue to the extent that it is probable that a significant revenue reversal will not occur in a future period. The Company generates product revenue from the sale of medical device products and the sale and installation of the Company's AXIS image management system software. Revenue for service plans relate to the customer care plans for the Company’s equipment and AXIS image management system software. Revenue is recognized upon transfer of control of the promised goods or services to the customer for an amount that reflects the consideration that the Company expects to be entitled in exchange for those goods or services. The Company’s performance obligations are for product sales, installation of AXIS image management system software and customer care plans. The performance obligations are determined at contract inception based upon promises within the contract that are distinct. The product sales and installation of AXIS image management system software performance obligations are satisfied at a point in time, which is upon shipment for product sales and upon successful installation for the AXIS image management system. The performance obligation for customer care plans is satisfied over time as the customer receives and consumes the Company’s services. The Company invoices its customers upon shipment for product sales. For the installation of AXIS image management system software and customer care plans, the Company invoices its customers upon successful installation. Invoice payments are generally due within 30 days of invoice date. The transaction price is determined based on fixed consideration in the Company’s customer contracts and is recorded net of variable consideration. In determining the transaction price, a significant financing component does not exist since the timing from when the Company invoices its customers to when payment is received as it is less than one year. Revenue for product sales and installation of AXIS image management system software is recognized when delivered or installed. The customer care plan revenues are recognized proportionately over the service period, which is a 12-month period. The Company has elected the following practical expedients in applying ASC 606: • Unsatisfied Performance Obligations - all performance obligations relate to contracts with a duration of less than one year, the Company has elected to apply the optional exemption provided in ASC 606 and therefore, is not required to disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. • Contract Costs - all incremental customer contract acquisition costs are expensed as they are incurred as the amortization period of the asset that the Company otherwise would have recognized is one year or less in duration. • Significant Financing Component - the Company does not adjust the promised amount of consideration for the effects of a significant financing component as the Company expects, at contract inception, that the period between when the entity transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. • Sales Tax Exclusion from the Transaction Price - the Company excludes from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the Company from the customer. • Shipping and Handling Activities - the Company elected to account for shipping and handling activities as a fulfillment cost rather than as a separate performance obligation. • Portfolio Approach - the Company applied the Portfolio Approach to contract reviews within its identified revenue streams that have similar characteristics and the Company believes this approach would not differ materially than if applying Topic 606 to each individual contract. Deferred Revenues The Company records deferred revenues when cash payments are received or due in advance of its performance. The Company’s deferred revenues relate to payments received for the customer care plans for a 12-month period. The consideration received is recognized monthly over the service period. (in thousands) Three Months Ended September 30, 2020 2019 Beginning of Period $ 516 $ 427 Additions 181 235 Revenue Recognized 230 235 End of Period $ 467 $ 427 |
Inventory | Inventories include freight-in materials, labor and overhead costs, and are stated at the lower of cost (first-in, first-out) or net realizable value. The Company writes down its inventories as it becomes aware of any situation whereas the carrying amount exceeds the estimated realizable value based on assumptions about future demands and market conditions. |
Accounts Receivable | Accounts receivable are recorded at net realizable value. The Company performs ongoing credit evaluations of customers’ financial condition and does not require collateral for accounts receivable arising in the normal course of business. The Company maintains allowances for potential credit losses based on the Company’s historical trends, specific customer issues and current economic trends. Accounts are written off against the allowance when they are determined to be uncollectible based on management’s assessment of individual accounts. The Company recorded an allowance for doubtful accounts of approximately $105,000 and $123,000 as of September 30, 2020 and June 30, 2020, respectively. |
Intangible Assets | ntangible assets deemed to have indefinite lives (including trademark and trade names) are not amortized but, instead, are subject to an annual impairment assessment. Additionally, if events or conditions were to indicate the carrying value or a reporting unit may not be recoverable, the Company would evaluate the other intangible assets for impairment at that time. Long-lived assets including intangible assets deemed to have finite lives, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Impairment indicators include, among other conditions, cash flow deficits, historic or anticipated declines in revenue or operating profit or material adverse changes in the business climate that indicate that the carrying amount of an asset may be impaired. When impairment indicators are present, the recoverability of the asset is measured by comparing the carrying value of the asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the projected undiscounted cash flows from the asset are less than the carrying value of the asset the asset is considered to be impaired. The impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of the asset. The Company tests indefinite-life intangible assets for possible impairment on an annual basis at June 30, and at any other time events occur or circumstances indicate that the carrying amount of intangible assets may be impaired. During the three months ended September 30, 2020 and September 30, 2019, no impairments were recorded. |
Accrued Warranties | The Company provides a limited one-year warranty against manufacturer’s defects on its products sold to customers. The Company’s standard warranties require the Company to repair or replace, at the Company’s discretion, defective parts during such warranty period. The Company accrues for its product warranty liabilities based on estimates of costs to be incurred during the warranty period, based on historical repair information for warranty costs. |
Net Income (loss) Per Share | Earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the year. All outstanding stock options are considered potential common stock. All outstanding convertible preferred stock are considered common stock at the beginning of the period or at the time of issuance, if later, pursuant to the if-converted method. The dilutive effect, if any, of stock options is calculated using the treasury stock method. As of September, 2020 and 2019, the average market prices for the three-month period then ended are less than the exercise price of all the outstanding stock options and, therefore, the inclusion of the stock options would be anti-dilutive. In addition, since the effect of common stock equivalents is anti-dilutive with respect to losses, the convertible preferred stock has also been excluded from the Company’s computation of loss per common for the three-month period ended September 30, 2020. Therefore, basic and diluted loss per common share for the three-month period ended September 30, 2020 are the same. For the three-month period ended September 30, 2019, the if-converted method was used for the convertible preferred stock to calculate the dilutive earnings per share. For the Three Months Ended September 30, 2020 2019 Numerator: Numerator for basic (loss) earnings per share: Net (loss) income $ (196,553 ) $ 621,373 Undeclared dividends on preferred stock 12,970 13,006 Net (loss) income applicable to common shareholders $ (209,523 ) $ 608,367 Numerator for diluted earnings per share: Net (loss) income applicable to common shareholders $ (209,523 ) $ 608,367 Undeclared dividends on preferred stock — 13,006 Net (loss) income $ (209,523 ) $ 621,373 Denominator: Denominator for basic (loss) earnings per share - weighted average shares outstanding 7,415,329 7,415,329 Weighted average preferred stock converted to common stock — 4,773,120 Denominator for diluted (loss) earnings per share - weighted average and assumed conversion 7,415,329 — 12,188,449 Net (loss) income per share: Basic net (loss) income per share $ (0.03 ) $ 0.08 Diluted net (loss) income per share $ (0.03 ) $ 0.05 The following table summarizes convertible preferred stock and securities that, if exercised would have an anti-dilutive effect on earnings per share. For the Three Months Ended September 30, 2020 2019 Stock options 157,000 213,000 Convertible preferred stock 5,204,527 — Total potential dilutive securities not included in income per share 5,361,527 213,000 Earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the year. All outstanding stock options are considered potential common stock. All outstanding convertible preferred stock are considered common stock at the beginning of the period or at the time of issuance, if later, pursuant to the if-converted method. The dilutive effect, if any, of stock options is calculated using the treasury stock method. As of September, 2020 and 2019, the average market prices for the three-month period then ended are less than the exercise price of all the outstanding stock options and, therefore, the inclusion of the stock options would be anti-dilutive. In addition, since the effect of common stock equivalents is anti-dilutive with respect to losses, the convertible preferred stock has also been excluded from the Company’s computation of loss per common for the three-month period ended September 30, 2020. Therefore, basic and diluted loss per common share for the three-month period ended September 30, 2020 are the same. For the three-month period ended September 30, 2019, the if-converted method was used for the convertible preferred stock to calculate the dilutive earnings per share. For the Three Months Ended September 30, 2020 2019 Numerator: Numerator for basic (loss) earnings per share: Net (loss) income $ (196,553 ) $ 621,373 Undeclared dividends on preferred stock 12,970 13,006 Net (loss) income applicable to common shareholders $ (209,523 ) $ 608,367 Numerator for diluted earnings per share: Net (loss) income applicable to common shareholders $ (209,523 ) $ 608,367 Undeclared dividends on preferred stock — 13,006 Net (loss) income $ (209,523 ) $ 621,373 Denominator: Denominator for basic (loss) earnings per share - weighted average shares outstanding 7,415,329 7,415,329 Weighted average preferred stock converted to common stock — 4,773,120 Denominator for diluted (loss) earnings per share - weighted average and assumed conversion 7,415,329 — 12,188,449 Net (loss) income per share: Basic net (loss) income per share $ (0.03 ) $ 0.08 Diluted net (loss) income per share $ (0.03 ) $ 0.05 The following table summarizes convertible preferred stock and securities that, if exercised would have an anti-dilutive effect on earnings per share. For the Three Months Ended September 30, 2020 2019 Stock options 157,000 213,000 Convertible preferred stock 5,204,527 — Total potential dilutive securities not included in income per share 5,361,527 213,000 |
Income Taxes | The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the unaudited condensed consolidated financial statements. Under this method, the Company determines deferred tax assets and liabilities on the basis of the differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company recognizes deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If the Company determines that it would be able to realize its deferred tax assets in the future in excess of their net recorded amount, the Company would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. As of September 30, 2020 and June 30, 2020, the Company has a fully recorded valuation allowance against its deferred tax assets. The Company records uncertain tax positions in accordance with ASC 740 on the basis of a two-step process in which (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The Company recognizes interest and penalties related to unrecognized tax benefits on the income tax expense line in the accompanying unaudited condensed consolidated statements of operations. As of September 30, 2020 and June 30, 2020, no accrued interest or penalties were required to be included on the related tax liability line in the unaudited condensed consolidated balance sheets. |
Lessee, Leases [Policy Text Block] | The Company determines if an arrangement is a lease at the inception of a contract. Operating lease right-of-use ("ROU") assets are included in right-of-use assets on the unaudited condensed consolidated balance sheets. The current and long-term components of operating lease liabilities are included in the current portion of operating lease liabilities and operating lease liabilities, net of current portion, respectively on the unaudited condensed consolidated balance sheets. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term. As most of the Company's leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. Certain leases may include options to extend or terminate the lease. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. |
New Accounting Pronouncements | The Company considers the applicability and impact of all accounting standards updates ("ASUs"). Management periodically reviews new accounting standards that are issued. New Accounting Pronouncements Not yet Adopted In June 2016 the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which adds a new Topic 326 to the Codification and removes the thresholds that companies apply to measure credit losses on financial instruments measured at amortized cost, such as loans, receivables, and held-to-maturity debt securities. The guidance in ASU 2016-13 is effective for “public business entities,” as defined, that are SEC filers for fiscal years and for interim periods with those fiscal years beginning after December 15, 2022. Early adoption of the guidance is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The adoption of this standard is not expected to have a material impact to the Company’s consolidated financial statements. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 3 Months Ended |
Sep. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The following table summarizes convertible preferred stock and securities that, if exercised would have an anti-dilutive effect on earnings per share. For the Three Months Ended September 30, 2020 2019 Stock options 157,000 213,000 Convertible preferred stock 5,204,527 — Total potential dilutive securities not included in income per share 5,361,527 213,000 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For the Three Months Ended September 30, 2020 2019 Numerator: Numerator for basic (loss) earnings per share: Net (loss) income $ (196,553 ) $ 621,373 Undeclared dividends on preferred stock 12,970 13,006 Net (loss) income applicable to common shareholders $ (209,523 ) $ 608,367 Numerator for diluted earnings per share: Net (loss) income applicable to common shareholders $ (209,523 ) $ 608,367 Undeclared dividends on preferred stock — 13,006 Net (loss) income $ (209,523 ) $ 621,373 Denominator: Denominator for basic (loss) earnings per share - weighted average shares outstanding 7,415,329 7,415,329 Weighted average preferred stock converted to common stock — 4,773,120 Denominator for diluted (loss) earnings per share - weighted average and assumed conversion 7,415,329 — 12,188,449 Net (loss) income per share: Basic net (loss) income per share $ (0.03 ) $ 0.08 Diluted net (loss) income per share $ (0.03 ) $ 0.05 |
Schedule of Inventory, Current [Table Text Block] | September 30, June 30, (in thousands) 2020 2020 Inventories, net: Raw Material $ 655 $ 613 Work-In-Process 139 323 Finished Goods 791 849 Total $ 1,585 $ 1,785 |
Deferred Revenue, by Arrangement, Disclosure [Table Text Block] | (in thousands) Three Months Ended September 30, 2020 2019 Beginning of Period $ 516 $ 427 Additions 181 235 Revenue Recognized 230 235 End of Period $ 467 $ 427 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | September 30, June 30, (in thousands) 2020 2020 Inventories, net: Raw Material $ 655 $ 613 Work-In-Process 139 323 Finished Goods 791 849 Total $ 1,585 $ 1,785 |
Long term debt (Tables)
Long term debt (Tables) | 3 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt [Table Text Block] | Year ending June 30, EIDL Loan Payment 2021(remainder of 2021) $ 234 2022 2,870 2023 2,980 2024 3,094 2025 3,212 Thereafter 137,610 Total $ 150,000 |
Concentration of credit risk (T
Concentration of credit risk (Tables) | 3 Months Ended |
Sep. 30, 2020 | |
Concentration Risk [Line Items] | |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | Concentration of Credit Risk Credit Risk Financial Instruments, which potentially subject the Company to concentration of credit risk, consist principally of cash and cash equivalents, restricted cash and trade receivables. Concentration of credit risk with respect to trade receivables is generally diversified due to the large number of entities comprising the Company's customer base and their dispersion across geographic areas principally within the United States and international. The Company routinely address the financial strength of its customer and, as a consequence, believes that its receivable credit risk exposure is limited. The Company does not require customers to post collateral. Major Customer One customer accounted for 21% of net sales during the three months ended September 30, 2020. One customer accounted for 13% of net sales during the three months ended September 30, 2019. As of September 30, 2020 the Company had one customer that represents 24% of the total accounts receivable balance. As of June 30, 2020 the Company had one customer that represents 18% of the total accounts receivable balance. Major Supplier The Company's three largest suppliers accounted for 33% , 16% and 13% of the total purchase for the three-month period ended September 30, 2020. The Company's two largest suppliers accounted for of total purchases for 15% and 25% of total purchase for the three-month period ended September 30, 2019. As of September 30, 2020 the Company had two suppliers that represents 34% and 13% of the total accounts payable balance. As of June 30, 2020 the Company had three suppliers that represent approximately 38% , 12% and 11% of the total accounts payable balance. Foreign Sales Domestic and international sales from continuing operations are as follows: ( in thousands) For the Three Months Ended September 30, 2020 2019 Domestic $ 1,542 63.9 % $ 1,467 64.1 % Foreign 872 36.1 % 821 35.9 % Total $ 2,414 100.0 % $ 2,288 100.0 % |
Retirement and post retiremen_2
Retirement and post retirement plans (Tables) | 3 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Changes in Fair Value of Plan Assets [Table Text Block] |
Leases (Tables)
Leases (Tables) - USD ($) | 3 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Leases 842 [Abstract] | ||
Schedule of Future Minimum Rental Payments for Operating Leases | Operating 2021 (excluding the three months ending September 30, 2020) $ 245,356 2022 321,029 2023 262,579 2024 267,788 2025 141,282 Thereafter 2,728 Total lease payments 1,240,762 Less interest 130,501 Present value of lease liabilities $ 1,110,261 | |
Lease, Cost [Table Text Block] | September 30, 2020 Weighted-average remaining lease terms (years) Operating leases 3.95 Weighted-average discount rate Operating leases 5.65 % Three Months Ended September 30, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases 89,800 99,569 Total $ 89,800 $ 99,569 Three Months Ended September 30, 2020 2019 Operating lease costs: Fixed 93,861 104,449 Total: $ 93,861 $ 104,449 | |
Short-term Lease Payments | $ 89,800 | $ 99,569 |
Leases of Lessee Disclosure [Text Block] | September 30, June 30, Leases (operating) Classification on the Balance Sheet 2020 2020 Assets Operating lease ROU assets Right-of-use asset $ 1,041,665 $ 1,107,127 Liabilities Current Current portion of operating lease liabilities $ 273,153 $ 278,634 Non-current Operating lease liabilities $ 837,108 $ 896,533 The Company adopted ASC Topic 842-Leases as of July 1, 2019, using the cumulative effective adjustment method wherein the Company applied the new lease standard at adoption date. Accordingly, all periods prior to July 1, 2019 were presented in accordance with the previous ASC Topic 840, Leases, and no retrospective adjustments were made to the comparative periods presented. Adoption of ASC 842 resulted in an increase to total assets and liabilities due to the recording of operating lease ROU and operating lease liabilities of approximately $ 1,138,000 and $ 1,208,000 respectively, as of July 1, 2019. The adoption did not materially impact the Company's unaudited condensed consolidated statements of operations or cash flows. The Company determines if a contract contains a lease at inception. US GAAP requires that the Company's leases be evaluated and classified as operating or finance leases for financial reporting purposes. The classification evaluation begins at the commencement date and the lease term used in the evaluation includes the non-cancellable period for which the Company has the right to use the underlying asset, together with renewal option periods when the exercise of the renewal option is reasonable certain and failure to exercise such option which result in an economic penalty. The Company has operating leases for manufacturing, research and corporate office facilities and certain equipment. Leases with an initial term of 12 months or less are not recorded in the balance sheet. The Company has elected the practical expedient to account for each separate lease component of a contract and its associated non-lease components as a single lease component, thus causing all fixed payments to be capitalized. The Company also elected the package of practical expedients permitted within the new standard, which among other things, allows the Company to carry forward historical lease classification. Variable lease payment amounts that cannot be determined at the commencement of the lease such as increases in lease payments based on changes in index rates or usage, are not included in the ROU assets or liabilities. these are expensed as incurred and recorded as variable lease expense. ROU assets represent the Company's right to use an underlying asset during the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at commencement date based on the net present value of fixed lease payments over the lease term. The Company's lease term includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. As the Company's operating leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the comment date in determining the present value of future lease payments. The components of lease costs included in cost of goods sold and marketing, general and administrative costs were as follows: Three Months Ended September 30, 2020 2019 Operating lease costs: Fixed 93,861 104,449 Total: $ 93,861 $ 104,449 Supplemental cash flow information was as follows: Three Months Ended September 30, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows for operating leases 89,800 99,569 Total $ 89,800 $ 99,569 Leases recorded on the balance sheet consist of the following: September 30, June 30, Leases (operating) Classification on the Balance Sheet 2020 2020 Assets Operating lease ROU assets Right-of-use asset $ 1,041,665 $ 1,107,127 Liabilities Current Current portion of operating lease liabilities $ 273,153 $ 278,634 Non-current Operating lease liabilities $ 837,108 $ 896,533 The table below reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancelable operating leases with terms of more than one year to the total operating lease liabilities recognized on the unaudited condensed consolidated balance sheets as of September 30, 2020: The aggregate future lease payments for operating leases as of September 30, 2020 were as follows: Operating 2021 (excluding the three months ending September 30, 2020) $ 245,356 2022 321,029 2023 262,579 2024 267,788 2025 141,282 Thereafter 2,728 Total lease payments 1,240,762 Less interest 130,501 Present value of lease liabilities $ 1,110,261 Average lease terms and discount rates were as follows: September 30, 2020 Weighted-average remaining lease terms (years) Operating leases 3.95 Weighted-average discount rate Operating leases 5.65 % |
Going concern (Details)
Going concern (Details) - USD ($) | Sep. 30, 2020 | Jun. 30, 2020 |
Going concern [Abstract] | ||
Retained Earnings (Accumulated Deficit) | $ (69,039,052) | $ (68,842,499) |
Significant Accounting Polici_4
Significant Accounting Policies (Cash and Cash Equivalents) (Details) - USD ($) | 3 Months Ended | |||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2018 | Jun. 30, 2018 | |
Accounting Policies [Abstract] | ||||
Restricted Cash | $ 255,475 | $ 255,281 | $ 253,404 | $ 253,135 |
Maximum maturity of highly liquid investments, period | 90 days |
Significant Accounting Polici_5
Significant Accounting Policies (Inventory) (Details) - USD ($) | Sep. 30, 2020 | Jun. 30, 2020 |
schedule of inventory [Abstract] | ||
Inventory, Raw Materials, Net of Reserves | $ 655,000 | $ 613,000 |
Inventory, Work in Process, Net of Reserves | 139,000 | 323,000 |
Inventory, Finished Goods, Net of Reserves | 791,000 | 849,000 |
Inventory, net | $ 1,584,961 | $ 1,785,030 |
Significant Accounting Polici_6
Significant Accounting Policies (Accounts Receivable) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 |
Accounting Policies [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss | $ 105 | $ 123 |
Significant Accounting Polici_7
Significant Accounting Policies (Net Income (loss) Per Share) (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net (loss) income | $ (196,553) | $ 621,373 |
Net Income (Loss) from Continuing Operations Available to Common Shareholders, Basic | $ (209,523) | $ 608,367 |
Basic Weighted average shares outstanding | 7,415,329 | 7,415,329 |
Weighted average shares - diluted | 7,415,329 | 12,188,449 |
Significant Accounting Polici_8
Significant Accounting Policies Earning per share details (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net (loss) income | $ (196,553) | $ 621,373 |
Preferred Stock Dividends, Income Statement Impact | 12,970 | 13,006 |
Net Income (Loss) Available to Common Stockholders, Diluted | $ (209,523) | $ 621,373 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 5,361,527 | 213,000 |
Net Income (Loss) from Continuing Operations Available to Common Shareholders, Basic | $ (209,523) | $ 608,367 |
Convertible Preferred Dividends, Net of Tax | $ 0 | |
Dilutive Securities, Effect on Basic Earnings Per Share, Dilutive Convertible Securities | $ 13,006 | |
Weighted average shares - basic | 7,415,329 | 7,415,329 |
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Preferred Stock | 0 | 4,773,120 |
Weighted average shares - diluted | 7,415,329 | 12,188,449 |
Earnings (Loss) Per Share, Basic | $ (0.03) | $ 0.08 |
Earnings (Loss) Per Share, Diluted | $ (0.03) | $ 0.05 |
Convertible Preferred Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 157,000 | 213,000 |
Equity Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 5,204,527 | 0 |
Significant Accounting Polici_9
Significant Accounting Policies Goodwill and intangible assets (Details) | 3 Months Ended |
Sep. 30, 2020USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment of Intangible Assets (Excluding Goodwill) | $ 0 |
Significant Accounting Polic_10
Significant Accounting Policies deferred revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | ||||
Deferred Revenue | $ 467 | $ 427 | $ 516 | $ 427 |
Deferred Revenue, Additions | 181 | 235 | ||
Deferred Revenue, Revenue Recognized | $ 230 | $ 235 |
Significant Accounting Polic_11
Significant Accounting Policies New accounting pronouncements recently adopted (Details) - USD ($) | Sep. 30, 2020 | Jun. 30, 2020 | Jul. 01, 2019 |
New accounting pronouncements recently adopted [Abstract] | |||
Operating Lease, Right-of-Use Asset | $ 1,041,665 | $ 1,107,127 | $ 1,137,878 |
Operating Lease, Liability | $ 1,208,000 |
Inventory (Details)
Inventory (Details) - USD ($) | Sep. 30, 2020 | Jun. 30, 2020 |
Inventory Disclosure [Abstract] | ||
Inventory, Raw Materials, Net of Reserves | $ 655,000 | $ 613,000 |
Work in process | 139,000 | 323,000 |
Finished goods | 791,000 | 849,000 |
Inventory, net | $ 1,584,961 | $ 1,785,030 |
Discontinued operation (Details
Discontinued operation (Details) - USD ($) $ in Thousands | Jan. 18, 2012 | Sep. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2015 |
BH Holdings, S.A.S [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Assets | $ 0 | $ 0 | ||
Disposal Group, Including Discontinued Operation, Other Liabilities, Current | 94 | 90 | $ 86 | |
Disposal Group, Including Discontinued Operation, Liabilities | 94 | 90 | ||
Assets (Liabilities) of Disposal Group, Including Discontinued Operation, Net | $ (94) | $ (90) | ||
BH Holdings, S.A.S [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Bankruptcy Proceedings, Operating Period During Liquidation | 3 months |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Jun. 30, 2020 | Feb. 14, 2018 | |
Related Party Transaction [Line Items] | |||
Related Party Transaction, Due from (to) Related Party | $ 645,000 | ||
Preferred Stock, Shares Issued | 2,000,000 | 2,000,000 | 2,000,000 |
Common Stock, Voting Rights | 0.7781 | ||
Convertible Preferred Stock, Shares Issued upon Conversion | 2.15 | ||
Common Stock, Conversion Basis | 4300000 | ||
Equity Method Investment, Ownership Percentage | 36.70% | ||
Dividends Payable, Date to be Paid | $ 135,679 | $ 122,709 | |
Dividends Payable, Amount Per Share | $ (0.0678) | $ (0.06) | $ (0.03) |
Line of credit (Details)
Line of credit (Details) - USD ($) | 3 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Jun. 29, 2018 | |
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 201,575 | |||
Line of Credit Facility, Periodic Payment, Interest | $ 2,576 | $ 3,639 | ||
Line of Credit Facility, Interest Rate at Period End | 6.24% | |||
Accrued expenses | $ 814,062 | $ 681,047 | ||
Notes Payable to Banks [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Notes Payable to Bank | $ 250,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |||
Debt Instrument, Basis Spread on Variable Rate | 74.00% | |||
Debt Instrument, Interest Rate During Period | 5.74% | |||
Line of Credit Facility, Collateral Fees, Amount | $ 250,000 |
Long term debt (Details)
Long term debt (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2020 | Jun. 30, 2020 | |
Debt Instrument [Line Items] | ||
Other Long-term Debt | $ 45,000 | |
PPP loan amount | 500,000 | |
Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Unsecured Long-term Debt, Noncurrent | $ 304,664 | |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 1.00% | |
Long-term Debt, Maturities, Repayment Terms | six | |
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long-Term Debt, Maturity, Year One | $ 234 | |
Long-Term Debt, Maturity, Year Two | $ 2,870 | |
Long-Term Debt, Maturity, Year Three | 2,980 | |
Long-Term Debt, Maturity, Year Four | 3,094 | |
Long-Term Debt, Maturity, Year Five | $ 3,212 | |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.75% | |
Long-term Debt | 150,000 | $ 150,000 |
EIDL Monthly Payment including Principal and Interest | $ 731 | |
Long-Term Debt, Maturity, after Year Five | $ 137,610 |
Concentration of credit risk (D
Concentration of credit risk (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | |
Concentration Risk [Line Items] | ||||
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | Concentration of Credit Risk Credit Risk Financial Instruments, which potentially subject the Company to concentration of credit risk, consist principally of cash and cash equivalents, restricted cash and trade receivables. Concentration of credit risk with respect to trade receivables is generally diversified due to the large number of entities comprising the Company's customer base and their dispersion across geographic areas principally within the United States and international. The Company routinely address the financial strength of its customer and, as a consequence, believes that its receivable credit risk exposure is limited. The Company does not require customers to post collateral. Major Customer One customer accounted for 21% of net sales during the three months ended September 30, 2020. One customer accounted for 13% of net sales during the three months ended September 30, 2019. As of September 30, 2020 the Company had one customer that represents 24% of the total accounts receivable balance. As of June 30, 2020 the Company had one customer that represents 18% of the total accounts receivable balance. Major Supplier The Company's three largest suppliers accounted for 33% , 16% and 13% of the total purchase for the three-month period ended September 30, 2020. The Company's two largest suppliers accounted for of total purchases for 15% and 25% of total purchase for the three-month period ended September 30, 2019. As of September 30, 2020 the Company had two suppliers that represents 34% and 13% of the total accounts payable balance. As of June 30, 2020 the Company had three suppliers that represent approximately 38% , 12% and 11% of the total accounts payable balance. Foreign Sales Domestic and international sales from continuing operations are as follows: ( in thousands) For the Three Months Ended September 30, 2020 2019 Domestic $ 1,542 63.9 % $ 1,467 64.1 % Foreign 872 36.1 % 821 35.9 % Total $ 2,414 100.0 % $ 2,288 100.0 % | |||
Concentration Risk, Supplier | three | two | ||
Customer Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 21.00% | 13.00% | ||
Customer Concentration Risk [Member] | Customer One [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Customer | 1 | 1 | ||
Geographic Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 100.00% | 100.00% | ||
Revenues | $ 2,287,988 | |||
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenues | $ 2,413,794 | |||
Accounts Payable Benchmark [Member] | Supplier Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 11.00% | |||
Concentration Risk, Supplier | two | three | ||
Accounts Receivable Benchmark [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Customer | 1 | 1 | ||
Concentration Risk, Percentage | 24.00% | 18.00% | ||
Domestic [Member] | Geographic Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 63.89% | 64.10% | ||
Revenues | $ 1,542,238 | $ 1,466,540 | ||
International [Member] | Geographic Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 36.11% | 35.90% | ||
Revenues | $ 871,556 | $ 821,448 | ||
Supplier one [Member] | Supplier Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 33.00% | 15.00% | ||
Supplier one [Member] | Accounts Payable Benchmark [Member] | Supplier Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 34.00% | 38.00% | ||
Supplier two [Member] [Member] | Supplier Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 16.00% | 25.00% | ||
Supplier two [Member] [Member] | Accounts Payable Benchmark [Member] | Supplier Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 13.00% | 12.00% | ||
Supplier three [Member] | Supplier Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 13.00% |
Retirement and post retiremen_3
Retirement and post retirement plans (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
Accrued expenses [Abstract] | |||
Payment for Pension and Other Postretirement Benefits | $ 8,491 | ||
Liability, Retirement and Postemployment Benefits | $ 791,985 | ||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.50% | ||
Other Income | $ 758,000 |
Leases (Details)
Leases (Details) - USD ($) | 3 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Jul. 01, 2019 | |
Leases 842 [Abstract] | ||||
Short-term Lease Payments | $ 89,800 | $ 99,569 | ||
Net present value of new lease future payments | $ 1,110,261 | |||
Operating Lease, Weighted Average Remaining Lease Term | 3 years 11 months 12 days | |||
Operating Leases, Future Minimum Payments Receivable, Remainder of Fiscal Year | $ 245,356 | |||
Finance Lease, Liability, to be Paid, Year Two | 321,029 | |||
Operating Leases, Rent Expense | 93,861 | $ 104,449 | ||
Operating Lease, Right-of-Use Asset | $ 1,041,665 | $ 1,107,127 | $ 1,137,878 | |
Operating Lease, Liability | $ 1,208,000 | |||
Lessor, Operating Lease, Term of Contract | 12 months | |||
Finance Lease, Liability, to be Paid, Year Three | $ 262,579 | |||
Finance Lease, Liability, to be Paid, Year Four | 267,788 | |||
Finance Lease, Liability, to be Paid, Year Five | 141,282 | |||
Operating Leases, Future Minimum Payments, Due Thereafter | 2,728 | |||
Operating Leases, Future Minimum Payments Due | 1,240,762 | |||
Interest portion in the future lease payments | $ 130,501 | |||
Operating Lease, Weighted Average Discount Rate, Percent | 0.00% | |||
Operating Lease, Liability, Current | $ 273,153 | 278,634 | ||
Operating Lease, Liability, Noncurrent | $ 837,108 | $ 896,533 |
Uncategorized Items - esmc-2020
Label | Element | Value |
Cash | us-gaap_Cash | $ 662,878 |
Cash | us-gaap_Cash | 669,222 |
Cash | us-gaap_Cash | 1,081,239 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | 662,878 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | 669,222 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 1,081,239 |