Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Dec. 31, 2013 | Jan. 31, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'PRECISION OPTICS Corp INC | ' |
Entity Central Index Key | '0000867840 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Dec-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--06-30 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 4,455,134 |
Document Fiscal Period Focus | 'Q2 | ' |
Document Fiscal Year Focus | '2014 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
CURRENT ASSETS | ' | ' |
Cash and Cash Equivalents | $577,588 | $1,034,587 |
Accounts Receivable, net | 518,751 | 278,700 |
Inventories, net | 771,451 | 896,173 |
Prepaid Expenses | 76,316 | 61,567 |
Total Current Assets | 1,944,106 | 2,271,027 |
PROPERTY AND EQUIPMENT | ' | ' |
Machinery and Equipment | 2,367,029 | 2,367,029 |
Leasehold Improvements | 553,596 | 553,596 |
Furniture and Fixtures | 148,303 | 148,303 |
Vehicles | 19,674 | 19,674 |
Total | 3,088,602 | 3,088,602 |
Less: Accumulated Depreciation | -3,069,503 | -3,056,554 |
Net Property and Equipment | 19,099 | 32,048 |
Patents, net | 8,098 | 0 |
TOTAL ASSETS | 1,971,303 | 2,303,075 |
CURRENT LIABILITIES | ' | ' |
Accounts Payable | 390,115 | 289,255 |
Customer Advances | 7,065 | 38,044 |
Accrued Employee Compensation | 165,555 | 151,915 |
Accrued Professional Services | 34,274 | 70,000 |
Accrued Warranty Expense | 25,000 | 25,000 |
Other Accrued Liabilities | 35,063 | 18,672 |
Total Current Liabilities | 657,072 | 592,886 |
STOCKHOLDERS' EQUITY (DEFICIT) | ' | ' |
Common Stock | 44,551 | 44,551 |
Additional Paid-in Capital | 42,022,933 | 41,955,717 |
Accumulated Deficit | -40,753,253 | -40,290,079 |
Total Stockholders' Equity (Deficit) | 1,314,231 | 1,710,189 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | $1,971,303 | $2,303,075 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Common Stock par value | $0.01 | $0.01 |
Common Stock shares authorized | 50,000,000 | 50,000,000 |
Common Stock shares issued | 4,455,134 | 4,455,134 |
Common Stock shares outstanding | 4,455,134 | 4,455,134 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Statement [Abstract] | ' | ' | ' | ' |
Revenues | $1,007,717 | $498,667 | $1,915,143 | $1,062,065 |
Cost of Goods Sold | 802,301 | 418,329 | 1,449,493 | 852,254 |
Gross Profit | 205,416 | 80,338 | 465,650 | 209,811 |
Research and Development Expenses, net | 92,142 | 166,661 | 227,055 | 373,952 |
Selling, General and Administrative Expenses | 366,874 | 268,916 | 702,916 | 549,880 |
Gain on Sale of Assets | -1,147 | -1,764 | -1,147 | -3,702 |
Total Operating Expenses | 457,869 | 433,813 | 928,824 | 920,130 |
Operating Loss | -252,453 | -353,475 | -463,174 | -710,319 |
Non-cash Provision for Claims for Liquidated Damages | 0 | -629,000 | 0 | -629,000 |
Other Income | 0 | 76,149 | 0 | 76,149 |
Interest Expense | 0 | -158 | 0 | -1,408 |
Net Loss | ($252,453) | ($906,484) | ($463,174) | ($1,264,578) |
Loss Per Share: | ' | ' | ' | ' |
Basic | ($0.06) | ($0.22) | ($0.10) | ($0.47) |
Diluted | ($0.06) | ($0.22) | ($0.10) | ($0.47) |
Weighted Average Common Shares Outstanding: | ' | ' | ' | ' |
Basic | 4,455,134 | 4,035,656 | 4,455,134 | 2,688,788 |
Diluted | 4,455,134 | 4,035,656 | 4,455,134 | 2,688,788 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net Loss | ($463,174) | ($1,264,578) |
Adjustments to Reconcile Net Loss to Net Cash Used In Operating Activities - | ' | ' |
Depreciation and Amortization | 13,375 | 10,435 |
Gain on Sale of Assets | -1,147 | -3,702 |
Gain on Settlement of Accounts Payable | 0 | -76,149 |
Stock-based Compensation Expense | 67,216 | 21,016 |
Non-cash Provision for Settlement of Claims for Liquidated Damages | 0 | 629,000 |
Non-cash Interest Expense | 0 | 1,250 |
Changes in Operating Assets and Liabilities - | ' | ' |
Accounts Receivable, net | -240,051 | 117,518 |
Inventories | 124,722 | -9,239 |
Prepaid Expenses | -14,749 | -56,433 |
Accounts Payable | 100,860 | -96,243 |
Customer Advances | -30,979 | 20,396 |
Accrued Expenses | -5,695 | -6,939 |
Net Cash Used In Operating Activities | -449,622 | -713,668 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchases of Property and Equipment | 0 | -3,550 |
Additional Patent Costs | -8,524 | 0 |
Proceeds from Sale of Assets | 1,147 | 3,702 |
Net Cash (Used For) Provided By Investing Activities | -7,377 | 152 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Gross Proceeds from September 2012 Private Placement of Common Stock and Warrants | 0 | 2,500,015 |
Private Placement Expenses Incurred and Paid as of December 31, 2012 | 0 | -294,500 |
Proceeds From Exercise of Warrants to Purchase Common Stock (50,000 Shares) | 0 | 50,000 |
Payment of Principal and Interest on 10% Senior Convertible Notes | 0 | -52,500 |
Net Cash Provided by Financing Activities | 0 | 2,203,015 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | -456,999 | 1,489,499 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 1,034,587 | 145,923 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 577,588 | 1,635,422 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ' | ' |
Cash Paid for Income Taxes | 912 | 912 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ' | ' |
Private Placement Expenses Incurred But Not Yet Paid as of December 31, 2012 | $0 | $14,396 |
1_SUMMARY_OF_SIGNIFICANT_ACCOU
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||||||||
Principles of Consolidation and Operations | |||||||||||||||||
The accompanying consolidated financial statements include the accounts of Precision Optics Corporation, Inc. and its wholly-owned subsidiaries (the “Company”). All significant intercompany accounts and transactions have been eliminated in consolidation. | |||||||||||||||||
These consolidated financial statements have been prepared by the Company, without audit, and reflect normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of the results of the second quarter and six months of the Company’s fiscal year 2014. These consolidated financial statements do not include all disclosures associated with annual consolidated financial statements and, accordingly, should be read in conjunction with footnotes contained in the Company’s consolidated financial statements for the year ended June 30, 2013, together with the Report of Independent Registered Public Accounting Firm filed under cover of the Company’s 2013 Annual Report on Form 10-K, filed with the Securities and Exchange Commission on September 30, 2013. | |||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of these consolidated financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. | |||||||||||||||||
Income (Loss) Per Share | |||||||||||||||||
Basic income (loss) per share is computed by dividing net income or net loss by the weighted average number of shares of common stock outstanding during the period. Diluted income (loss) per share is computed by dividing net income or net loss by the weighted average number of shares of common stock outstanding during the period, plus the number of potentially dilutive securities outstanding during the period such as stock options, warrants, or shares issuable upon conversion of the Company’s 10% Senior Convertible Notes, which were retired in September 2012. For the three and six months ended December 31, 2013 and 2012, the effect of such securities was antidilutive and not included in the diluted calculation because of the net loss generated in those periods. | |||||||||||||||||
The following is the calculation of income (loss) per share for the three and six months ended December 31, 2013 and 2012: | |||||||||||||||||
Three Months | Six Months | ||||||||||||||||
Ended December 31 | Ended December 31 | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net Loss – Basic and Diluted | $ | (252,453 | ) | $ | (906,484 | ) | $ | (463,174 | ) | $ | (1,264,578 | ) | |||||
Basic Weighted Average Shares Outstanding | 4,455,134 | 4,035,656 | 4,455,134 | 2,688,788 | |||||||||||||
Potentially Dilutive Securities | – | – | – | – | |||||||||||||
Diluted Weighted Average Shares Outstanding | 4,455,134 | 4,035,656 | 4,455,134 | 2,688,788 | |||||||||||||
Loss Per Share | |||||||||||||||||
Basic | $ | (0.06 | ) | $ | (0.22 | ) | $ | (0.10 | ) | $ | (0.47 | ) | |||||
Diluted | $ | (0.06 | ) | $ | (0.22 | ) | $ | (0.10 | ) | $ | (0.47 | ) | |||||
The number of shares issuable upon the exercise of outstanding stock options and warrants that were excluded from the computation as their effect was antidilutive was approximately 3,382,000 and 3,056,000 for the three months ended December 31, 2013 and 2012, respectively, and approximately 3,382,000 and 3,056,000 for the six months ended December 31, 2013 and 2012, respectively. | |||||||||||||||||
Income Taxes | |||||||||||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | |||||||||||||||||
In assessing the likelihood of utilization of existing deferred tax assets, management has considered historical results of operations and the current operating environment. Based on this evaluation, a full valuation reserve has been provided for the deferred tax assets. |
2_INVENTORIES
2. INVENTORIES | 6 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
2. INVENTORIES | ' | ||||||||
Inventories are stated at the lower of cost (first-in, first-out) or market and consisted of the following: | |||||||||
December 31, | June 30, | ||||||||
2013 | 2013 | ||||||||
Raw Materials | $ | 359,550 | $ | 302,448 | |||||
Work-In-Progress | 306,563 | 392,991 | |||||||
Finished Goods | 105,338 | 200,734 | |||||||
Total Inventories | $ | 771,451 | $ | 896,173 | |||||
3_STOCKBASED_COMPENSATION
3. STOCK-BASED COMPENSATION | 6 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||
3. STOCK-BASED COMPENSATION | ' | ||||||||||||||||||||||
Stock-based compensation costs recognized during the quarters ended December 31, 2013 and 2012 amounted to $33,608 and $10,508, respectively, and the costs were included in the accompanying consolidated statements of operations in: selling, general and administrative expenses (2013 - $32,050; 2012 - $8,050), research and development expenses (2013 - $550, 2012 - $550) and cost of goods sold (2013 - $1,008; 2012 - $1,908). Stock-based compensation costs recognized during the six months ended December 31, 2013 and 2012 amounted to $67,216 and $21,016, respectively, and were included in the accompanying consolidated statements of operations in: selling, general and administrative expenses (2013 - $64,100; 2012 - $16,100), research and development expenses (2013 - $1,100, 2012 - $1,100) and cost of goods sold (2013 - $2,016, 2012 - $3,816). No compensation has been capitalized because such amounts would have been immaterial. No income tax provision was recorded in the second quarter or first six months of fiscal years 2014 or 2013 because of the losses generated or the availability of loss carryforwards to offset any anticipated taxable income. | |||||||||||||||||||||||
There were no stock option grants or cancellations during the quarter ended December 31, 2013. | |||||||||||||||||||||||
As of December 31, 2013, the unrecognized compensation costs related to options vesting of $65,717 will be recognized over a period of approximately 0.5 years. | |||||||||||||||||||||||
Information related to the stock options outstanding as of December 31, 2013 is as follows: | |||||||||||||||||||||||
Range of Exercise Prices | Number of | Weighted-Average | Weighted-Average | Exercisable | Exercisable | ||||||||||||||||||
Shares | Remaining | Exercise Price | Number | Weighted-Average | |||||||||||||||||||
Contractual | of Shares | Exercise Price | |||||||||||||||||||||
Life (years) | |||||||||||||||||||||||
$ | 0.85 | 9,000 | 9.01 | $ | 0.85 | 9,000 | $ | 0.85 | |||||||||||||||
$ | 1.2 | 207,800 | 8.17 | $ | 1.2 | 157,800 | $ | 1.2 | |||||||||||||||
$ | 0.55 | 49,500 | 8.12 | $ | 0.55 | 34,667 | $ | 0.55 | |||||||||||||||
$ | 0.27 | 40,000 | 7.54 | $ | 0.27 | 40,000 | $ | 0.27 | |||||||||||||||
$ | 1.35 | 1,200 | 5.9 | $ | 1.35 | 1,200 | $ | 1.35 | |||||||||||||||
$ | 1.25 | 1,200 | 4.9 | $ | 1.25 | 1,200 | $ | 1.25 | |||||||||||||||
$ | 6.25 | 1,600 | 2.91 | $ | 6.25 | 1,600 | $ | 6.25 | |||||||||||||||
$ | 7.75 | 1,200 | 3.91 | $ | 7.75 | 1,200 | $ | 7.75 | |||||||||||||||
$ | 11.5 | 800 | 1.91 | $ | 11.5 | 800 | $ | 11.5 | |||||||||||||||
$ | 13.75 | 50,427 | 2.36 | $ | 13.75 | 50,427 | $ | 13.75 | |||||||||||||||
$ | 20.75 | 37,360 | 1.46 | $ | 20.75 | 37,360 | $ | 20.75 | |||||||||||||||
$ | 0.27–$20.75 | 400,087 | 6.7 | $ | 4.49 | 335,254 | $ | 5.15 | |||||||||||||||
The aggregate intrinsic value of the Company’s “in-the-money” outstanding and exercisable options as of December 31, 2013 was $42,975 and $37,783, respectively. |
4_SALE_OF_STOCK
4. SALE OF STOCK | 6 Months Ended |
Dec. 31, 2013 | |
Stockholders' Equity Note [Abstract] | ' |
4. SALE OF STOCK | ' |
On September 28, 2012, the Company closed on agreements with accredited investors (the “Investors”) for the sale and purchase of units consisting of an aggregate of (i) 2,777,795 shares of the Company’s common stock, and (ii) warrants to purchase an aggregate of 1,944,475 shares of common stock, at a per unit price of $0.90. Each unit consisted of one share of common stock and 70% warrant coverage. The warrants have an exercise price of $1.25 per share, subject to adjustment and a call provision if certain market price targets are reached, an expiration date of September 28, 2017, and are exercisable in whole or in part, at any time prior to expiration. Certain directors and officers participated in the offering and purchased a total aggregate amount of approximately $80,000 of units in the offering. | |
The Company received $2.5 million in gross proceeds from the offering. The Company retained Loewen, Ondaatje, McCutcheon USA LTD as the exclusive placement agent for the offering. In addition to the payment of certain cash fees upon closing of the offering, the Company issued a warrant to the placement agent to purchase up to 194,446 shares of common stock on substantially similar terms to the warrants issued in the offering, except that the placement agent warrant has an exercise price of $0.95 per share. | |
In conjunction with the offering, the Company also entered into a registration rights agreement dated September 28, 2012 with the Investors, whereby it was obligated to file a registration statement with the Securities and Exchange Commission (the “SEC”) on or before thirty calendar days after September 28, 2012 to register the resale by the Investors of the 2,777,795 shares of common stock purchased in the offering, and the 1,944,475 shares of common stock underlying the warrants purchased in the offering. The Company filed a registration statement with the SEC on October 26, 2012, prior to the filing deadline. The registration statement became effective on December 14, 2012. The Company is obligated to continue to keep the securities registered and, in the event the Company does not comply with such provision of the registration rights agreement, it may have to pay damages to the Investors. | |
In conjunction with the offering, certain anti-dilution provisions of the warrants issued in conjunction with the Company’s June 25, 2008 financing transaction were triggered. As a result, the number of existing June 25, 2008 warrants increased from 318,621 to 469,831 and the related exercise price of the warrants decreased from $1.74 per share to $1.18 per share. 39,153 of these warrants expire on June 25, 2015, and the remaining 430,678 warrants expire on May 11, 2017. |
5_SALE_OF_ASSETS
5. SALE OF ASSETS | 6 Months Ended |
Dec. 31, 2013 | |
Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract] | ' |
5. SALE OF ASSETS | ' |
During the six months ended December 31, 2013 and 2012, respectively, the Company sold equipment that was previously written off for proceeds totaling $1,147 and $3,702, respectively, and recorded a gain of $1,147 and $3,702, respectively, which is included within operating expenses in the accompanying consolidated statements of operations. |
1_SUMMARY_OF_SIGNIFICANT_ACCOU1
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Principles of Consolidation and Operations | ' | ||||||||||||||||
Principles of Consolidation and Operations | |||||||||||||||||
The accompanying consolidated financial statements include the accounts of Precision Optics Corporation, Inc. and its wholly-owned subsidiaries (the “Company”). All significant intercompany accounts and transactions have been eliminated in consolidation. | |||||||||||||||||
These consolidated financial statements have been prepared by the Company, without audit, and reflect normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of the results of the second quarter and six months of the Company’s fiscal year 2014. These consolidated financial statements do not include all disclosures associated with annual consolidated financial statements and, accordingly, should be read in conjunction with footnotes contained in the Company’s consolidated financial statements for the year ended June 30, 2013, together with the Report of Independent Registered Public Accounting Firm filed under cover of the Company’s 2013 Annual Report on Form 10-K, filed with the Securities and Exchange Commission on September 30, 2013. | |||||||||||||||||
Use of Estimates | ' | ||||||||||||||||
Use of Estimates | |||||||||||||||||
The preparation of these consolidated financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. | |||||||||||||||||
Income (Loss) Per Share | ' | ||||||||||||||||
Income (Loss) Per Share | |||||||||||||||||
Basic income (loss) per share is computed by dividing net income or net loss by the weighted average number of shares of common stock outstanding during the period. Diluted income (loss) per share is computed by dividing net income or net loss by the weighted average number of shares of common stock outstanding during the period, plus the number of potentially dilutive securities outstanding during the period such as stock options, warrants, or shares issuable upon conversion of the Company’s 10% Senior Convertible Notes, which were retired in September 2012. For the three and six months ended December 31, 2013 and 2012, the effect of such securities was antidilutive and not included in the diluted calculation because of the net loss generated in those periods. | |||||||||||||||||
The following is the calculation of income (loss) per share for the three and six months ended December 31, 2013 and 2012: | |||||||||||||||||
Three Months | Six Months | ||||||||||||||||
Ended December 31 | Ended December 31 | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net Loss – Basic and Diluted | $ | (252,453 | ) | $ | (906,484 | ) | $ | (463,174 | ) | $ | (1,264,578 | ) | |||||
Basic Weighted Average Shares Outstanding | 4,455,134 | 4,035,656 | 4,455,134 | 2,688,788 | |||||||||||||
Potentially Dilutive Securities | – | – | – | – | |||||||||||||
Diluted Weighted Average Shares Outstanding | 4,455,134 | 4,035,656 | 4,455,134 | 2,688,788 | |||||||||||||
Loss Per Share | |||||||||||||||||
Basic | $ | (0.06 | ) | $ | (0.22 | ) | $ | (0.10 | ) | $ | (0.47 | ) | |||||
Diluted | $ | (0.06 | ) | $ | (0.22 | ) | $ | (0.10 | ) | $ | (0.47 | ) | |||||
The number of shares issuable upon the exercise of outstanding stock options and warrants that were excluded from the computation as their effect was antidilutive was approximately 3,382,000 and 3,056,000 for the three months ended December 31, 2013 and 2012, respectively, and approximately 3,382,000 and 3,056,000 for the six months ended December 31, 2013 and 2012, respectively. | |||||||||||||||||
Income Taxes | ' | ||||||||||||||||
Income Taxes | |||||||||||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | |||||||||||||||||
In assessing the likelihood of utilization of existing deferred tax assets, management has considered historical results of operations and the current operating environment. Based on this evaluation, a full valuation reserve has been provided for the deferred tax assets. |
1_SUMMARY_OF_SIGNIFICANT_ACCOU2
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Income (Loss) per Share | ' | ||||||||||||||||
Three Months | Six Months | ||||||||||||||||
Ended December 31 | Ended December 31 | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net Loss – Basic and Diluted | $ | (252,453 | ) | $ | (906,484 | ) | $ | (463,174 | ) | $ | (1,264,578 | ) | |||||
Basic Weighted Average Shares Outstanding | 4,455,134 | 4,035,656 | 4,455,134 | 2,688,788 | |||||||||||||
Potentially Dilutive Securities | – | – | – | – | |||||||||||||
Diluted Weighted Average Shares Outstanding | 4,455,134 | 4,035,656 | 4,455,134 | 2,688,788 | |||||||||||||
Loss Per Share | |||||||||||||||||
Basic | $ | (0.06 | ) | $ | (0.22 | ) | $ | (0.10 | ) | $ | (0.47 | ) | |||||
Diluted | $ | (0.06 | ) | $ | (0.22 | ) | $ | (0.10 | ) | $ | (0.47 | ) |
2_INVENTORIES_Tables
2. INVENTORIES (Tables) | 6 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
December 31, | June 30, | ||||||||
2013 | 2013 | ||||||||
Raw Materials | $ | 359,550 | $ | 302,448 | |||||
Work-In-Progress | 306,563 | 392,991 | |||||||
Finished Goods | 105,338 | 200,734 | |||||||
Total Inventories | $ | 771,451 | $ | 896,173 | |||||
3_STOCKBASED_COMPENSATION_Tabl
3. STOCK-BASED COMPENSATION (Tables) | 6 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||
Information related to stock options outstanding | ' | ||||||||||||||||||||||
Range of Exercise Prices | Number of | Weighted-Average | Weighted-Average | Exercisable | Exercisable | ||||||||||||||||||
Shares | Remaining | Exercise Price | Number | Weighted-Average | |||||||||||||||||||
Contractual | of Shares | Exercise Price | |||||||||||||||||||||
Life (years) | |||||||||||||||||||||||
$ | 0.85 | 9,000 | 9.01 | $ | 0.85 | 9,000 | $ | 0.85 | |||||||||||||||
$ | 1.2 | 207,800 | 8.17 | $ | 1.2 | 157,800 | $ | 1.2 | |||||||||||||||
$ | 0.55 | 49,500 | 8.12 | $ | 0.55 | 34,667 | $ | 0.55 | |||||||||||||||
$ | 0.27 | 40,000 | 7.54 | $ | 0.27 | 40,000 | $ | 0.27 | |||||||||||||||
$ | 1.35 | 1,200 | 5.9 | $ | 1.35 | 1,200 | $ | 1.35 | |||||||||||||||
$ | 1.25 | 1,200 | 4.9 | $ | 1.25 | 1,200 | $ | 1.25 | |||||||||||||||
$ | 6.25 | 1,600 | 2.91 | $ | 6.25 | 1,600 | $ | 6.25 | |||||||||||||||
$ | 7.75 | 1,200 | 3.91 | $ | 7.75 | 1,200 | $ | 7.75 | |||||||||||||||
$ | 11.5 | 800 | 1.91 | $ | 11.5 | 800 | $ | 11.5 | |||||||||||||||
$ | 13.75 | 50,427 | 2.36 | $ | 13.75 | 50,427 | $ | 13.75 | |||||||||||||||
$ | 20.75 | 37,360 | 1.46 | $ | 20.75 | 37,360 | $ | 20.75 | |||||||||||||||
$ | 0.27–$20.75 | 400,087 | 6.7 | $ | 4.49 | 335,254 | $ | 5.15 |
1_SUMMARY_OF_SIGNIFICANT_ACCOU3
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accounting Policies [Abstract] | ' | ' | ' | ' |
Net Loss - Basic and Diluted | ($252,453) | ($906,484) | ($463,174) | ($1,264,578) |
Basic Weighted Average Shares Outstanding | 4,455,134 | 4,035,656 | 4,455,134 | 2,688,788 |
Potentially Dilutive Securities | 0 | 0 | 0 | 0 |
Diluted Weighted Average Shares Outstanding | 4,455,134 | 4,035,656 | 4,455,134 | 2,688,788 |
Loss Per Share | ' | ' | ' | ' |
Basic | ($0.06) | ($0.22) | ($0.10) | ($0.47) |
Diluted | ($0.06) | ($0.22) | ($0.10) | ($0.47) |
1_SUMMARY_OF_SIGNIFICANT_ACCOU4
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accounting Policies [Abstract] | ' | ' | ' | ' |
Antidilutive shares issuable upon exercise of stock options and warrants and excluded from computation of earnings per share | 3,382,000 | 3,056,000 | 3,382,000 | 3,056,000 |
2_INVENTORIES_Details
2. INVENTORIES (Details) (USD $) | Dec. 31, 2013 | Jun. 30, 2013 |
Total Inventories | $771,451 | $896,173 |
Raw Materials | ' | ' |
Total Inventories | 359,550 | 302,448 |
Work-In-Progress | ' | ' |
Total Inventories | 306,563 | 392,991 |
Finished Goods | ' | ' |
Total Inventories | $105,338 | $200,734 |
3_STOCKBASED_COMPENSATION_Deta
3. STOCK-BASED COMPENSATION (Details - Stock Options Outstanding) (USD $) | 6 Months Ended |
Dec. 31, 2013 | |
Range of exercise prices | '0.27 to 20.75 |
Number of shares | 400,087 |
Weighted average contractual life | '6 years 8 months 12 days |
Weighted average exercise price | $4.49 |
Exercisable number of shares related to stock options outstanding | 335,254 |
Exercisable weighted average exercise price | $5.15 |
Option 1 | ' |
Range of exercise prices | '0.85 |
Number of shares | 9,000 |
Weighted average contractual life | '8 years 11 months 30 days |
Weighted average exercise price | $0.85 |
Exercisable number of shares related to stock options outstanding | 9,000 |
Exercisable weighted average exercise price | $0.85 |
Option 2 | ' |
Range of exercise prices | '1.20 |
Number of shares | 207,800 |
Weighted average contractual life | '8 years 1 month 29 days |
Weighted average exercise price | $1.20 |
Exercisable number of shares related to stock options outstanding | 157,800 |
Exercisable weighted average exercise price | $1.20 |
Option 3 | ' |
Range of exercise prices | '0.55 |
Number of shares | 49,500 |
Weighted average contractual life | '8 years 1 month 10 days |
Weighted average exercise price | $0.55 |
Exercisable number of shares related to stock options outstanding | 34,667 |
Exercisable weighted average exercise price | $0.55 |
Option 4 | ' |
Range of exercise prices | '0.27 |
Number of shares | 40,000 |
Weighted average contractual life | '7 years 6 months 14 days |
Weighted average exercise price | $0.27 |
Exercisable number of shares related to stock options outstanding | 40,000 |
Exercisable weighted average exercise price | $0.27 |
Option 5 | ' |
Range of exercise prices | '1.35 |
Number of shares | 1,200 |
Weighted average contractual life | '5 years 10 months 24 days |
Weighted average exercise price | $1.35 |
Exercisable number of shares related to stock options outstanding | 1,200 |
Exercisable weighted average exercise price | $1.35 |
Option 6 | ' |
Range of exercise prices | '1.25 |
Number of shares | 1,200 |
Weighted average contractual life | '4 years 10 months 24 days |
Weighted average exercise price | $1.25 |
Exercisable number of shares related to stock options outstanding | 1,200 |
Exercisable weighted average exercise price | $1.25 |
Option 7 | ' |
Range of exercise prices | '6.25 |
Number of shares | 1,600 |
Weighted average contractual life | '2 years 10 months 28 days |
Weighted average exercise price | $6.25 |
Exercisable number of shares related to stock options outstanding | 1,600 |
Exercisable weighted average exercise price | $6.25 |
Option 8 | ' |
Range of exercise prices | '7.75 |
Number of shares | 1,200 |
Weighted average contractual life | '3 years 10 months 28 days |
Weighted average exercise price | $7.75 |
Exercisable number of shares related to stock options outstanding | 1,200 |
Exercisable weighted average exercise price | $7.75 |
Option 9 | ' |
Range of exercise prices | '11.50 |
Number of shares | 800 |
Weighted average contractual life | '1 year 10 months 28 days |
Weighted average exercise price | $11.50 |
Exercisable number of shares related to stock options outstanding | 800 |
Exercisable weighted average exercise price | $11.50 |
Option 10 | ' |
Range of exercise prices | '13.75 |
Number of shares | 50,427 |
Weighted average contractual life | '2 years 4 months 10 days |
Weighted average exercise price | $13.75 |
Exercisable number of shares related to stock options outstanding | 50,427 |
Exercisable weighted average exercise price | $13.75 |
Option 11 | ' |
Range of exercise prices | '20.75 |
Number of shares | 37,360 |
Weighted average contractual life | '1 year 5 months 16 days |
Weighted average exercise price | $20.75 |
Exercisable number of shares related to stock options outstanding | 37,360 |
Exercisable weighted average exercise price | $20.75 |
3_STOCKBASED_COMPENSATION_Narr
3. STOCK-BASED COMPENSATION (Narrative) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock-based compensation costs | $33,608 | $10,508 | $67,216 | $21,016 |
Stock options granted | 0 | ' | ' | ' |
Stock options cancelled | 0 | ' | ' | ' |
Unrecognized compensation costs related to options vesting | 65,717 | ' | 65,717 | ' |
Unrecognized compensation costs recognition period | ' | ' | '6 months | ' |
Aggregate intrinsic value of "in the money" outstanding options | 42,975 | ' | 42,975 | ' |
Aggregate intrinsic value of "in the money" exercisable options | 37,783 | ' | 37,783 | ' |
Selling, General and Administrative Expenses | ' | ' | ' | ' |
Stock-based compensation costs | 32,050 | 8,050 | 64,100 | 16,100 |
Research and Development Expenses | ' | ' | ' | ' |
Stock-based compensation costs | 550 | 550 | 1,100 | 1,100 |
Cost of Goods Sold | ' | ' | ' | ' |
Stock-based compensation costs | $1,008 | $1,908 | $2,016 | $3,816 |
5_SALE_OF_ASSETS_Narrative
5. SALE OF ASSETS (Narrative) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract] | ' | ' | ' | ' |
Gain on sale of assets | $1,147 | $1,764 | $1,147 | $3,702 |