Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2016 | Feb. 14, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | PRECISION OPTICS CORPORATION, INC. | |
Entity Central Index Key | 867,840 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2016 | |
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 | 8,872,916 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,017 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Dec. 31, 2016 | Jun. 30, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 516,578 | $ 50,059 |
Accounts receivable, net | 442,087 | 750,380 |
Inventories, net | 1,097,891 | 1,133,451 |
Prepaid expenses | 94,044 | 88,129 |
Total current assets | 2,150,600 | 2,022,019 |
Property and Equipment: | ||
Machinery and equipment | 2,505,314 | 2,479,471 |
Leasehold improvements | 553,596 | 553,596 |
Furniture and fixtures | 148,303 | 148,303 |
Vehicles | 0 | 19,674 |
Total | 3,207,213 | 3,201,044 |
Less: Accumulated depreciation and amortization | (3,119,194) | (3,122,849) |
Net fixed assets | 88,019 | 78,195 |
Patents, net | 28,722 | 22,874 |
TOTAL ASSETS | 2,267,341 | 2,123,088 |
Current Liabilities: | ||
Current portion of capital lease obligation | 8,120 | 7,857 |
Accounts payable | 983,128 | 1,151,561 |
Customer advances | 37,100 | 0 |
Accrued employee compensation | 194,451 | 238,381 |
Accrued professional services | 66,600 | 65,550 |
Accrued warranty expense | 25,000 | 25,000 |
Other accrued liabilities | 63,012 | 15,612 |
Total current liabilities | 1,377,411 | 1,503,961 |
Capital lease obligation, net of current portion | 27,828 | 31,955 |
Stockholders' Equity: | ||
Common Stock, $0.01 par value - Authorized - 50,000,000 shares; Issued and Outstanding - 8,872,916 shares at December 31, 2016 and 7,539,582 shares at June 30, 2016 | 88,729 | 75,396 |
Additional paid-in capital | 45,043,151 | 44,176,051 |
Accumulated deficit | (44,269,778) | (43,664,275) |
Total stockholders' equity | 862,102 | 587,172 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 2,267,341 | $ 2,123,088 |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Dec. 31, 2016 | Jun. 30, 2016 |
STOCKHOLDERS' EQUITY | ||
Common Stock par value | $ 0.01 | $ 0.01 |
Common Stock shares authorized | 50,000,000 | 50,000,000 |
Common Stock shares issued | 8,872,916 | 7,539,582 |
Common Stock shares outstanding | 8,872,916 | 7,539,582 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | ||||
Revenues | $ 601,590 | $ 954,772 | $ 1,451,138 | $ 1,813,199 |
Cost of goods sold | 453,183 | 737,750 | 1,135,680 | 1,463,839 |
Gross profit | 148,407 | 217,022 | 315,458 | 349,360 |
Research and development expenses, net | 119,215 | 108,146 | 236,207 | 258,914 |
Selling, general and administrative expenses | 342,487 | 407,088 | 686,269 | 772,114 |
Gain on sale of assets | (1,200) | (16,902) | (1,515) | (18,468) |
Total operating expenses | 460,502 | 498,332 | 920,961 | 1,012,560 |
Net loss | $ (312,095) | $ (281,310) | $ (605,503) | $ (663,200) |
Loss Per Share: | ||||
Basic | $ (.04) | $ (.04) | $ (.08) | $ (.10) |
Diluted | $ (.04) | $ (.04) | $ (.08) | $ (.10) |
Weighted Average Common Shares Outstanding: | ||||
Basic | 8,104,800 | 7,230,169 | 7,822,191 | 6,809,988 |
Diluted | 8,104,800 | 7,230,169 | 7,822,191 | 6,809,988 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (605,503) | $ (663,200) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization | 16,019 | 10,847 |
Gain on sale of assets | (1,515) | (18,468) |
Stock-based compensation expense | 110,433 | 142,428 |
Non-cash consulting expense | 17,400 | 47,850 |
Changes in operating assets and liabilities | ||
Accounts receivable, net | 308,293 | 162,309 |
Inventories | 35,560 | (20,500) |
Prepaid expenses | (5,915) | (24,030) |
Accounts payable | (168,433) | (59,369) |
Customer advances | 37,100 | (70,830) |
Accrued expenses | (22,880) | (31,968) |
Net cash used in operating activities | (279,441) | (524,931) |
Cash Flows from Investing Activities: | ||
Additional patent costs | (5,848) | (2,871) |
Purchases of property and equipment | (25,843) | (4,372) |
Proceeds from sale of assets | 1,515 | 18,468 |
Net cash provided by (used in) investing activities | (30,176) | 11,225 |
Cash Flows from Financing Activities: | ||
Payment of capital lease obligation | (3,864) | 0 |
Gross proceeds from private placement of common stock | 780,000 | 700,000 |
Private placement expenses incurred | 0 | (16,452) |
Net cash provided by financing activities | 776,136 | 683,548 |
Net increase in cash and cash equivalents | 466,519 | 169,842 |
Cash and cash equivalents, beginning of period | 50,059 | 241,051 |
Cash and cash equivalents, end of period | 516,578 | 410,893 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash paid for income taxes | $ 0 | $ 912 |
1. SUMMARY OF SIGNIFICANT ACCOU
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
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 2017. 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, 2016 together with the Report of Independent Registered Public Accounting Firm filed under cover of the Company’s 2016 Annual Report on Form 10-K, filed with the Securities and Exchange Commission on September 28, 2016. 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 and warrants. For the three and six months ended December 31, 2016 and 2015, the effect of such securities was antidilutive and not included in the diluted calculation because of the net loss generated in these periods. The following is the calculation of loss per share for the three and six months ended December 31, 2016 and 2015: Three Months Six Months 2016 2015 2016 2015 Net Income (Loss) – Basic and Diluted $ (312,095 ) $ (281,310 ) $ (605,503 ) $ (663,200 ) Basic Weighted Average Shares Outstanding 8,104,800 7,230,169 7,822,191 6,809,988 Potentially Dilutive Securities – – – – Diluted Weighted Average Shares Outstanding 8,104,800 7,230,169 7,822,191 6,809,988 Loss Per Share Basic $ (0.04 ) $ (0.04 ) $ (0.08 ) $ (0.10 ) Diluted $ (0.04 ) $ (0.04 ) $ (0.08 ) $ (0.10 ) 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 5,113,224 and 4,478,000 for the three months ended December 31, 2016 and 2015, respectively, and approximately 5,113,224 and 4,478,000 for the six months ended December 31, 2016 and 2015, 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, 2016 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | Inventories are stated at the lower of cost (first-in, first-out) or market and consisted of the following: December 31, June 30, Raw Materials $ 572,318 $ 520,490 Work-In-Progress 317,294 383,889 Finished Goods 208,279 229,072 Total Inventories $ 1,097,891 $ 1,133,451 |
3. CAPITAL LEASE OBLIGATION
3. CAPITAL LEASE OBLIGATION | 6 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
CAPITAL LEASE OBLIGATION | The Company entered into a five-year capital lease obligation in January 2016 for the acquisition of manufacturing equipment totaling $51,252. At December 31, 2016, future minimum lease payments under the capital lease obligation are as follows: Fiscal Year Ending June 30: Amount 2017 $ 5,125 2018 10,250 2019 10,250 2020 10,250 2021 5,126 Total minimum payments 41,001 Less: amount representing interest 5,053 Present value of minimum lease payments 35,948 Less: current portion 8,120 $ 27,828 |
4. STOCK-BASED COMPENSATION
4. STOCK-BASED COMPENSATION | 6 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | Stock-based compensation costs recognized during the quarters ended December 31, 2016 and 2015 amounted to $49,532 and $42,105 respectively, and the costs were included in the accompanying consolidated statements of operations in: selling, general and administrative expenses (2016 - $34,171; 2015 - $24,121), research and development expenses (2016 - $6,692, 2015 - $9,316) and cost of goods sold (2016 - $8,669; 2015 - $8,668). Stock-based compensation costs recognized during the six month periods ended December 31, 2016 and 2015 amounted to $110,433 and $142,428, respectively, and were included in the accompanying consolidated statements of operations in: selling, general and administrative expenses (2016 - $77,086; 2015 - $60,378), research and development expenses (2016 - $16,009, 2015 - $38,707) and cost of goods sold (2016 - $17,338, 2015 - $43,343). No compensation has been capitalized because such amounts would have been immaterial. The following tables summarize stock option activity for the six months ended December 31, 2016: Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Contractual Life Outstanding at June 30, 2016 1,136,000 $ 0.79 7.74 years Cancellations (1,600) $ 6.25 Outstanding at December 31, 2016 1,134,400 $ 0.78 7.50 years Information related to the stock options outstanding as of December 31, 2016 is as follows: Range of Exercise Prices Number of Shares Weighted-Average Remaining Contractual Life (years) Weighted-Average Exercise Price Exercisable Number of Shares Exercisable Weighted-Average Exercise Price $ 0.27 40,000 4.54 $ 0.27 40,000 $ 0.27 $ 0.48 60,000 9.25 $ 0.48 20,000 $ 0.48 $ 0.50 80,000 9.47 $ 0.50 35,000 $ 0.50 $ 0.50 20,000 4.47 $ 0.50 20,000 $ 0.50 $ 0.55 37,000 5.11 $ 0.55 37,000 $ 0.55 $ 0.73 603,000 8.38 $ 0.73 402,000 $ 0.73 $ 0.85 9,000 6.01 $ 0.85 9,000 $ 0.85 $ 0.90 9,000 7.01 $ 0.90 9,000 $ 0.90 $ 0.95 65,000 7.53 $ 0.95 65,000 $ 0.95 $ 1.20 207,800 5.17 $ 1.20 207,800 $ 1.20 $ 1.25 1,200 1.90 $ 1.25 1,200 $ 1.25 $ 1.35 1,200 2.90 $ 1.35 1,200 $ 1.35 $ 7.75 1,200 0.09 $ 7.75 1,200 $ 7.75 $ 0.27–$7.75 1,134,400 7.50 $ 0.78 848,400 $ 0.83 The aggregate intrinsic value of the Company’s “in-the-money” outstanding and exercisable options as of December 31, 2016 was $48,840 and $35,590, respectively. |
5. SALE OF STOCK
5. SALE OF STOCK | 6 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
SALE OF STOCK | November 2016 On November 22, 2016, the Company entered into agreements with accredited investors for the sale and purchase of 1,333,334 units with each unit consisting of one share of the Company’s common stock, $0.01 par value and one warrant to purchase one-half of one share of the Company’s common stock, at a purchase price of $0.60 per unit. The Company received $780,000 in gross cash proceeds from the offering and settled an outstanding accounts payable balance with a consultant in the amount of $20,000 by issuing units. The Company is using the net proceeds from this placement for general working capital purposes. The warrants issued in this offering will vest on October 2, 2017 and expire on October 16, 2017. The warrant exercise price is variable and depends on the Company’s achievement of certain performance criteria (both defined below). The warrant exercise price will be $0.40 per share if the Company achieves both of the revenue and income performance criteria, the exercise price will be $0.20 per share if the Company achieves one of the performance criteria, and the exercise price will be $0.01 if the Company does not achieve either of the performance criteria. Pursuant to the revenue criterion, the Company must achieve at least $1.85 million of revenue in any one quarter during the fiscal year ending June 30, 2017. Pursuant to the income criterion, the Company must achieve positive net income in any two quarters during the fiscal year ending June 30, 2017. Both criteria will be determined under U.S. Generally Accepted Accounting Principles and by the Company’s audited consolidated annual financial statements and the Company’s quarterly financial statements. In conjunction with the offering, the Company also entered into a registration rights agreement with the investors, whereby the Company was obligated to file a registration statement with the Securities Exchange Commission on or before 90 calendar days after November 22, 2016 to register the resale by the investors of the 1,333,334 shares and warrant shares purchased in the offering. The registration statement was filed with the Securities and Exchange Commission on February 3, 2017. In conjunction with the offering, certain anti-dilution provisions of the warrants issued in conjunction with our June 25, 2008 and September 28, 2012 financing transactions were triggered. For purposes of this calculation, all warrants issued in this offering are assumed to be exercised at an exercise price of $0.40. As a result, the number of existing June 25, 2008 warrants increased from 517,222 to 568,776 and the related exercise price of the warrants decreased from $0.98 to $0.89 per share. Also, as a result of the offering, the number of existing September 28, 2012 warrants increased from 2,293,013 to 2,503,237 and 222,559 to 240,144, respectively, and the related exercise price decreased from $1.06 to $0.97 and from $0.83 to $0.77, respectively. October 2015 On October 19, 2015, the Company entered into agreements with accredited investors for the sale and purchase of 1,044,776 shares of the Company’s common stock, $0.01 par value at a purchase price of $0.67 per share. The Company received $700,000 in gross proceeds from the offering. The Company used the net proceeds from this placement for general working capital purposes. In conjunction with the placement, the Company also entered into a registration rights agreement with the investors, whereby the Company was obligated to file a registration statement with the Securities Exchange Commission on or before 90 calendar days after October 19, 2015 to register the resale by the investors of the 1,044,776 shares of the Company’s common stock purchased in the placement. The registration statement was filed with the Securities and Exchange Commission on January 19, 2016 and became effective on February 1, 2016. In conjunction with the offering, certain anti-dilution provisions of the warrants issued in conjunction with the Company’s June 25, 2008 and September 28, 2012 financing transactions were triggered. As a result, the number of existing June 25, 2008 warrants increased from 493,398 to 517,222 and the related exercise price of the warrants decreased from $1.03 to $0.98 per share. Also, as a result of the offering, the number of existing September 28, 2012 warrants increased from 2,189,724 to 2,293,013 and 217,322 to 222,559, respectively, and the related exercise price decreased from $1.11 to $1.06 and from $0.85 to $0.83, respectively. |
6. SALE OF ASSETS
6. SALE OF ASSETS | 6 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract] | |
SALE OF ASSETS | During the six months ended December 31, 2016 and 2015, the Company sold equipment that was previously written off for proceeds totaling $1,515 and $18,468, respectively, and recorded gains of $1,515 and $18,468, respectively, which are included within operating expenses in the accompanying consolidated statements of operations. |
1. SUMMARY OF SIGNIFICANT ACC12
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | 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 2017. 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, 2016 together with the Report of Independent Registered Public Accounting Firm filed under cover of the Company’s 2016 Annual Report on Form 10-K, filed with the Securities and Exchange Commission on September 28, 2016. |
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 and warrants. For the three and six months ended December 31, 2016 and 2015, the effect of such securities was antidilutive and not included in the diluted calculation because of the net loss generated in these periods. The following is the calculation of loss per share for the three and six months ended December 31, 2016 and 2015: Three Months Six Months 2016 2015 2016 2015 Net Income (Loss) – Basic and Diluted $ (312,095 ) $ (281,310 ) $ (605,503 ) $ (663,200 ) Basic Weighted Average Shares Outstanding 8,104,800 7,230,169 7,822,191 6,809,988 Potentially Dilutive Securities – – – – Diluted Weighted Average Shares Outstanding 8,104,800 7,230,169 7,822,191 6,809,988 Loss Per Share Basic $ (0.04 ) $ (0.04 ) $ (0.08 ) $ (0.10 ) Diluted $ (0.04 ) $ (0.04 ) $ (0.08 ) $ (0.10 ) 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 5,113,224 and 4,478,000 for the three months ended December 31, 2016 and 2015, respectively, and approximately 5,113,224 and 4,478,000 for the six months ended December 31, 2016 and 2015, 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 ACC13
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Income (Loss) per Share | Three Months Six Months 2016 2015 2016 2015 Net Income (Loss) – Basic and Diluted $ (312,095 ) $ (281,310 ) $ (605,503 ) $ (663,200 ) Basic Weighted Average Shares Outstanding 8,104,800 7,230,169 7,822,191 6,809,988 Potentially Dilutive Securities – – – – Diluted Weighted Average Shares Outstanding 8,104,800 7,230,169 7,822,191 6,809,988 Loss Per Share Basic $ (0.04 ) $ (0.04 ) $ (0.08 ) $ (0.10 ) Diluted $ (0.04 ) $ (0.04 ) $ (0.08 ) $ (0.10 ) |
2. INVENTORIES (Tables)
2. INVENTORIES (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | December 31, June 30, Raw Materials $ 572,318 $ 520,490 Work-In-Progress 317,294 383,889 Finished Goods 208,279 229,072 Total Inventories $ 1,097,891 $ 1,133,451 |
3. CAPITAL LEASE OBLIGATION (Ta
3. CAPITAL LEASE OBLIGATION (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Future minimum capital lease payments | Fiscal Year Ending June 30: Amount 2017 $ 5,125 2018 10,250 2019 10,250 2020 10,250 2021 5,126 Total minimum payments 41,001 Less: amount representing interest 5,053 Present value of minimum lease payments 35,948 Less: current portion 8,120 $ 27,828 |
4. STOCK-BASED COMPENSATION (Ta
4. STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock option activity | Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Contractual Life Outstanding at June 30, 2016 1,136,000 $ 0.79 7.74 years Cancellations (1,600) $ 6.25 Outstanding at December 31, 2016 1,134,400 $ 0.78 7.50 years |
Stock options outstanding by exercise price range | Range of Exercise Prices Number of Shares Weighted-Average Remaining Contractual Life (years) Weighted-Average Exercise Price Exercisable Number of Shares Exercisable Weighted-Average Exercise Price $ 0.27 40,000 4.54 $ 0.27 40,000 $ 0.27 $ 0.48 60,000 9.25 $ 0.48 20,000 $ 0.48 $ 0.50 80,000 9.47 $ 0.50 35,000 $ 0.50 $ 0.50 20,000 4.47 $ 0.50 20,000 $ 0.50 $ 0.55 37,000 5.11 $ 0.55 37,000 $ 0.55 $ 0.73 603,000 8.38 $ 0.73 402,000 $ 0.73 $ 0.85 9,000 6.01 $ 0.85 9,000 $ 0.85 $ 0.90 9,000 7.01 $ 0.90 9,000 $ 0.90 $ 0.95 65,000 7.53 $ 0.95 65,000 $ 0.95 $ 1.20 207,800 5.17 $ 1.20 207,800 $ 1.20 $ 1.25 1,200 1.90 $ 1.25 1,200 $ 1.25 $ 1.35 1,200 2.90 $ 1.35 1,200 $ 1.35 $ 7.75 1,200 0.09 $ 7.75 1,200 $ 7.75 $ 0.27–$7.75 1,134,400 7.50 $ 0.78 848,400 $ 0.83 |
1. SUMMARY OF SIGNIFICANT ACC17
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Loss per share) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | ||||
Net Loss - Basic and Diluted | $ (312,095) | $ (281,310) | $ (605,503) | $ (663,200) |
Basic Weighted Average Shares Outstanding | 8,104,800 | 7,230,169 | 7,822,191 | 6,809,988 |
Potentially Dilutive Securities | 0 | 0 | 0 | 0 |
Diluted Weighted Average Shares Outstanding | 8,104,800 | 7,230,169 | 7,822,191 | 6,809,988 |
Loss Per Share | ||||
Basic | $ (.04) | $ (.04) | $ (.08) | $ (.10) |
Diluted | $ (.04) | $ (.04) | $ (.08) | $ (.10) |
1. SUMMARY OF SIGNIFICANT ACC18
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - shares | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | ||||
Outstanding stock options and warrants that were excluded from the computation as their effect was antidilutive | 5,113,224 | 4,478,000 | 5,113,224 | 4,478,000 |
2. INVENTORIES (Details)
2. INVENTORIES (Details) - USD ($) | Dec. 31, 2016 | Jun. 30, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 572,318 | $ 520,490 |
Work-in-progress | 317,294 | 383,889 |
Finished goods | 208,279 | 229,072 |
Total inventories | $ 1,097,891 | $ 1,133,451 |
3. CAPITAL LEASE OBLIGATION (De
3. CAPITAL LEASE OBLIGATION (Details) - USD ($) | Dec. 31, 2016 | Jun. 30, 2016 |
Debt Disclosure [Abstract] | ||
2,017 | $ 5,125 | |
2,018 | 10,250 | |
2,019 | 10,250 | |
2,020 | 10,250 | |
2,021 | 5,126 | |
Total minimum payments | 41,001 | |
Less: amount representing interest | 5,053 | |
Present value of minimum lease payments | 35,948 | |
Less: current portion | 8,120 | $ 7,857 |
Capital lease obligation, noncurrent | $ 27,828 | $ 31,955 |
4. STOCK-BASED COMPENSATION (De
4. STOCK-BASED COMPENSATION (Details - Option activity) - Stock Options [Member] | 6 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Number of Shares | |
Options outstanding, beginning | shares | 1,136,000 |
Options cancelled | shares | (1,600) |
Options outstanding, ending | shares | 1,134,400 |
Weighted Average Exercise Price | |
Weighted average exercise price, beginning price | $ / shares | $ .79 |
Weighted average exercise price, cancellations | $ / shares | 6.25 |
Weighted average exercise price, ending price | $ / shares | $ .78 |
Weighted Average Contractual Life | |
Weighted Average Contractual Life, beginning | 7 years 8 months 27 days |
Weighted Average Contractual Life, ending | 7 years 6 months |
4. STOCK-BASED COMPENSATION (22
4. STOCK-BASED COMPENSATION (Details - Options by exercise price) - $ / shares | 6 Months Ended | |
Dec. 31, 2016 | Jun. 30, 2016 | |
Stock Options [Member] | ||
Range of exercise prices | $0.27-$7.75 | |
Number of shares outstanding | 1,134,400 | 1,136,000 |
Weighted average contractual life | 7 years 6 months | |
Weighted average exercise price | $ .78 | $ .79 |
Exercisable number of shares | 848,400 | |
Exercisable weighted average exercise price | $ .83 | |
Option 1 [Member] | ||
Range of exercise prices | .27 | |
Number of shares outstanding | 40,000 | |
Weighted average contractual life | 4 years 6 months 15 days | |
Weighted average exercise price | $ .27 | |
Exercisable number of shares | 40,000 | |
Exercisable weighted average exercise price | $ 0.27 | |
Option 2 [Member] | ||
Range of exercise prices | .48 | |
Number of shares outstanding | 60,000 | |
Weighted average contractual life | 9 years 3 months | |
Weighted average exercise price | $ .48 | |
Exercisable number of shares | 20,000 | |
Exercisable weighted average exercise price | $ 0.48 | |
Option 3 [Member] | ||
Range of exercise prices | .50 | |
Number of shares outstanding | 80,000 | |
Weighted average contractual life | 9 years 5 months 19 days | |
Weighted average exercise price | $ .50 | |
Exercisable number of shares | 35,000 | |
Exercisable weighted average exercise price | $ 0.50 | |
Option 4 [Member] | ||
Range of exercise prices | .50 | |
Number of shares outstanding | 20,000 | |
Weighted average contractual life | 4 years 5 months 19 days | |
Weighted average exercise price | $ .50 | |
Exercisable number of shares | 20,000 | |
Exercisable weighted average exercise price | $ .50 | |
Option 5 [Member] | ||
Range of exercise prices | .55 | |
Number of shares outstanding | 37,000 | |
Weighted average contractual life | 5 years 1 month 10 days | |
Weighted average exercise price | $ .55 | |
Exercisable number of shares | 37,000 | |
Exercisable weighted average exercise price | $ .55 | |
Option 6 [Member] | ||
Range of exercise prices | .73 | |
Number of shares outstanding | 603,000 | |
Weighted average contractual life | 8 years 4 months 17 days | |
Weighted average exercise price | $ .73 | |
Exercisable number of shares | 402,000 | |
Exercisable weighted average exercise price | $ .73 | |
Option 7 [Member] | ||
Range of exercise prices | .85 | |
Number of shares outstanding | 9,000 | |
Weighted average contractual life | 6 years 4 days | |
Weighted average exercise price | $ .85 | |
Exercisable number of shares | 9,000 | |
Exercisable weighted average exercise price | $ .85 | |
Option 8 [Member] | ||
Range of exercise prices | .90 | |
Number of shares outstanding | 9,000 | |
Weighted average contractual life | 7 years 4 days | |
Weighted average exercise price | $ .90 | |
Exercisable number of shares | 9,000 | |
Exercisable weighted average exercise price | $ .90 | |
Option 9 [Member] | ||
Range of exercise prices | .95 | |
Number of shares outstanding | 65,000 | |
Weighted average contractual life | 7 years 6 months 11 days | |
Weighted average exercise price | $ .95 | |
Exercisable number of shares | 65,000 | |
Exercisable weighted average exercise price | $ .95 | |
Option 10 [Member] | ||
Range of exercise prices | 1.20 | |
Number of shares outstanding | 207,800 | |
Weighted average contractual life | 5 years 2 months 1 day | |
Weighted average exercise price | $ 1.20 | |
Exercisable number of shares | 207,800 | |
Exercisable weighted average exercise price | $ 1.20 | |
Option 11 [Member] | ||
Range of exercise prices | 1.25 | |
Number of shares outstanding | 1,200 | |
Weighted average contractual life | 1 year 10 months 24 days | |
Weighted average exercise price | $ 1.25 | |
Exercisable number of shares | 1,200 | |
Exercisable weighted average exercise price | $ 1.25 | |
Option 12 [Member] | ||
Range of exercise prices | 1.35 | |
Number of shares outstanding | 1,200 | |
Weighted average contractual life | 2 years 10 months 24 days | |
Weighted average exercise price | $ 1.35 | |
Exercisable number of shares | 1,200 | |
Exercisable weighted average exercise price | $ 1.35 | |
Option 13 [Member] | ||
Range of exercise prices | 7.75 | |
Number of shares outstanding | 1,200 | |
Weighted average contractual life | 1 month 2 days | |
Weighted average exercise price | $ 7.75 | |
Exercisable number of shares | 1,200 | |
Exercisable weighted average exercise price | $ 7.75 |
4. STOCK-BASED COMPENSATION (23
4. STOCK-BASED COMPENSATION (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock-based compensation costs | $ 49,532 | $ 42,105 | $ 110,433 | $ 142,428 |
Options granted | 0 | |||
Aggregate intrinsic value of "in the money" outstanding | 48,840 | $ 48,840 | ||
Aggregate intrinsic value of "in the money" exercisable | 35,590 | 35,590 | ||
Selling, General and Administrative Expenses [Member] | ||||
Stock-based compensation costs | 34,171 | 24,121 | 77,086 | 60,378 |
Research and Development Expenses [Member] | ||||
Stock-based compensation costs | 6,692 | 9,316 | 16,009 | 38,707 |
Cost of Goods Sold [Member] | ||||
Stock-based compensation costs | $ 8,669 | $ 8,668 | $ 17,338 | $ 43,343 |
5. SALE OF STOCK (Details Narra
5. SALE OF STOCK (Details Narrative) - USD ($) | 6 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Proceeds from sale of stock | $ 780,000 | $ 700,000 |
Private Placement [Member] | Accredited Investors [Member] | ||
Stock issued, new | 1,333,334 | |
Proceeds from sale of stock | $ 780,000 | |
Warrants issued, new | 666,667 |
6. SALE OF ASSETS (Details Narr
6. SALE OF ASSETS (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract] | ||||
Proceeds from sale of assets | $ 1,515 | $ 18,468 | ||
Gain on sale of assets | $ 1,200 | $ 16,902 | $ 1,515 | $ 18,468 |