Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2018 | May 15, 2018 | |
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 | Mar. 31, 2018 | |
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 | 10,095,139 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,018 | |
Entity Small Business | true |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Mar. 31, 2018 | Jun. 30, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 201,897 | $ 118,405 |
Accounts receivable, net | 579,165 | 468,548 |
Inventories, net | 1,124,420 | 1,055,447 |
Prepaid expenses | 88,630 | 55,985 |
Total current assets | 1,994,112 | 1,698,385 |
Property and Equipment: | ||
Machinery and equipment | 2,507,190 | 2,507,190 |
Leasehold improvements | 553,596 | 553,596 |
Furniture and fixtures | 148,303 | 148,303 |
Total | 3,209,089 | 3,209,089 |
Less: Accumulated depreciation and amortization | (3,158,563) | (3,136,835) |
Net fixed assets | 50,526 | 72,254 |
Patents, net | 47,275 | 30,086 |
TOTAL ASSETS | 2,091,913 | 1,800,725 |
Current Liabilities: | ||
Current portion of capital lease obligation | 8,816 | 8,391 |
Accounts payable | 642,579 | 694,958 |
Customer advances | 621,341 | 180,137 |
Accrued employee compensation | 159,975 | 189,783 |
Accrued professional services | 75,500 | 71,000 |
Accrued warranty expense | 25,000 | 25,000 |
Other accrued liabilities | 56,100 | 49,512 |
Total current liabilities | 1,589,311 | 1,218,781 |
Capital lease obligation, net of current portion | 16,897 | 23,564 |
Stockholders' Equity: | ||
Common Stock, $0.01 par value - Authorized - 50,000,000 shares; Issued and Outstanding 10,095,139 shares at March 31, 2018 and 8,872,916 shares at June 30, 2017 | 100,952 | 88,729 |
Additional paid-in capital | 45,423,867 | 45,140,383 |
Accumulated deficit | (45,039,114) | (44,670,732) |
Total stockholders' equity | 485,705 | 558,380 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 2,091,913 | $ 1,800,725 |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2018 | Jun. 30, 2017 |
STOCKHOLDERS' EQUITY | ||
Common Stock par value | $ 0.01 | $ 0.01 |
Common Stock shares authorized | 50,000,000 | 50,000,000 |
Common Stock shares issued | 10,095,139 | 8,872,916 |
Common Stock shares outstanding | 10,095,139 | 8,872,916 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||||
Revenues | $ 735,597 | $ 983,186 | $ 2,577,116 | $ 2,434,324 |
Cost of goods sold | 499,444 | 705,062 | 1,653,999 | 1,840,742 |
Gross profit | 236,153 | 278,124 | 923,117 | 593,582 |
Research and development expenses, net | 126,365 | 122,313 | 334,823 | 358,520 |
Selling, general and administrative expenses | 388,611 | 318,581 | 955,230 | 1,003,590 |
Gain on sale of assets | 0 | 0 | 0 | (1,515) |
Total operating expenses | 514,976 | 440,894 | 1,290,053 | 1,360,595 |
Operating loss | (278,823) | (162,770) | (366,936) | (767,013) |
Interest expense | (448) | (583) | (1,446) | (1,843) |
Net loss | $ (279,271) | $ (163,353) | $ (368,382) | $ (768,856) |
Loss Per Share: | ||||
Basic | $ (.03) | $ (.02) | $ (0.04) | $ (0.09) |
Diluted | $ (0.03) | $ (0.02) | $ (0.04) | $ (0.09) |
Weighted Average Common Shares Outstanding: | ||||
Basic | 10,095,139 | 8,872,916 | 9,724,904 | 8,167,320 |
Diluted | 10,095,139 | 8,872,916 | 9,724,904 | 8,167,320 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (368,382) | $ (768,856) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Depreciation and amortization | 21,728 | 24,909 |
Gain on sale of assets | 0 | (1,515) |
Stock-based compensation expense | 42,002 | 154,743 |
Non-cash consulting expense | 6,588 | 13,500 |
Bad debt expense | 113,750 | (18,377) |
Changes in operating assets and liabilities | ||
Accounts receivable, net | (224,367) | 234,835 |
Inventories, net | (68,973) | 10,229 |
Prepaid expenses | (32,645) | (14,225) |
Accounts payable | (12,379) | (229,445) |
Customer advances | 441,204 | 69,421 |
Accrued liabilities | (25,308) | (107,143) |
Net cash used in operating activities | (106,782) | (631,924) |
Cash Flows from Investing Activities: | ||
Additional patent costs | (17,189) | (5,848) |
Purchases of property and equipment | 0 | (27,719) |
Proceeds from sale of assets | 0 | 1,515 |
Net cash used in investing activities | (17,189) | (32,052) |
Cash Flows from Financing Activities: | ||
Payment of capital lease obligation | (6,242) | (5,844) |
Gross proceeds from private placement of common stock | 210,001 | 780,000 |
Gross proceeds from exercise of stock purchase warrrants | 6,667 | 0 |
Private Placement Expense Paid | (2,963) | (1,650) |
Net cash provided from financing activities | 207,463 | 772,506 |
Net increase in cash and cash equivalents | 83,492 | 108,530 |
Cash and cash equivalents, beginning of period | 118,405 | 50,059 |
Cash and cash equivalents, end of period | 201,897 | 158,589 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 912 | 912 |
Supplemental disclosure of non-cash financing and investing activities: | ||
Issuance of common stock in settlement of accounts payable | 40,000 | 0 |
Offering costs included in accounts payable | $ 0 | $ 22,296 |
1. SUMMARY OF SIGNIFICANT ACCOU
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 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 third quarter and nine months of the Company’s fiscal year 2018. 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, 2017, together with the Report of Independent Registered Public Accounting Firm filed under cover of the Company’s 2017 Annual Report on Form 10-K, filed with the Securities and Exchange Commission on September 28, 2017. 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 nine months ended March 31, 2018 and 2017, 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 nine months ended March 31, 2018 and 2017: Three Months Nine Months 2018 2017 2018 2017 Net Income (Loss) - Basic and Diluted $ (279,271 ) $ (163,353 ) $ (368,382 ) $ (768,856 ) Basic and Dilutive Weighted Average Shares Outstanding 10,095,139 8,872,916 9,724,904 8,167,320 Loss Per Share - Basic and Diluted $ (0.03 ) $ (0.02 ) $ (0.04 ) $ (0.09 ) 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 1,042,200 and 5,152,547 for the three months ended March 31, 2018 and 2017, respectively, and approximately 4,739,960 and 5,152,547 for the nine months ended March 31, 2018 and 2017, 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. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-09, Revenue from Contracts with Customers |
2. INVENTORIES
2. INVENTORIES | 9 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 2. INVENTORIES Inventories are stated at the lower of cost (first-in, first-out) or market and consisted of the following: March 31, June 30, Raw Materials $ 427,859 $ 501,346 Work-In-Progress 500,883 388,614 Finished Goods 195,678 165,487 Total Inventories $ 1,124,420 $ 1,055,447 |
3. CAPITAL LEASE OBLIGATION
3. CAPITAL LEASE OBLIGATION | 9 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
CAPITAL LEASE OBLIGATION | 3. 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 March 31, 2018, future minimum lease payments under the capital lease obligation are as follows: Fiscal Year Ending June 30: Amount 2018 $ 2,562 2019 10,250 2020 10,250 2021 5,126 Total minimum payments 28,188 Less: amount representing interest 2,475 Present value of minimum lease payments 25,713 Less: current portion 8,816 $ 16,897 |
4. STOCK-BASED COMPENSATION
4. STOCK-BASED COMPENSATION | 9 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | 4. STOCK-BASED COMPENSATION The following table summarizes stock-based compensation expense for the three and nine months ended March 31, 2018 and 2017: Three Months Nine Months 2018 2017 2018 2017 Cost of Goods Sold $ – $ 8,669 $ 8,669 $ 26,007 Research and Development Expenses 2,323 6,692 9,335 22,701 Selling, General and Administrative Expenses 6,651 28,949 23,998 106,035 Stock Based Compensation Expense $ 8,974 $ 44,310 $ 42,002 $ 154,743 No compensation has been capitalized because such amounts would have been immaterial. The following tables summarize stock option activity for the nine months ended March 31, 2018: Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Contractual Life Outstanding at June 30, 2017 1,078,400 $ 0.78 7.01 years Granted 25,000 Expired or Cancelled (61,200 ) Outstanding at March 31, 2018 1,042,200 $ 0.77 6.33 years Information related to the stock options outstanding as of March 31, 2018 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 3.29 $ 0.27 40,000 $ 0.27 $ 0.40 15,000 9.08 $ 0.40 10,000 $ 0.40 $ 0.48 60,000 8.00 $ 0.48 60,000 $ 0.48 $ 0.50 80,000 8.23 $ 0.50 45,000 $ 0.50 $ 0.50 20,000 3.22 $ 0.50 20,000 $ 0.50 $ 0.55 29,500 3.87 $ 0.55 29,500 $ 0.55 $ 0.64 25,000 9.62 $ 0.64 15,000 $ 0.64 $ 0.73 514,500 7.13 $ 0.73 494,500 $ 0.73 $ 0.85 9,000 4.76 $ 0.85 9,000 $ 0.85 $ 0.90 9,000 5.76 $ 0.90 9,000 $ 0.90 $ 0.95 30,000 6.28 $ 0.95 30,000 $ 0.95 $ 1.20 207,800 3.92 $ 1.20 207,800 $ 1.20 $ 1.25 1,200 0.65 $ 1.25 1,200 $ 1.25 $ 1.35 1,200 1.65 $ 1.35 1,200 $ 1.35 $ 0.27–1.35 1,042,200 6.33 $ 0.77 972,200 $ 0.78 The aggregate intrinsic value of the Company’s “in-the-money” outstanding and exercisable options as of March 31, 2018 was $22,650 and $20,150, respectively. |
5. WARRANTS
5. WARRANTS | 9 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
WARRANTS | 5. WARRANTS As of September 30, 2017, there were warrants outstanding for the issuance of an aggregate of 666,667 shares of common stock, $0.01 par value, at a purchase price of $0.01 per share. All warrants for 666,667 shares were exercised on or before October 16, 2017, by payment to the Company for the aggregate purchase price of $6,667. There are no warrants for the purchase of the Company’s stock outstanding as of March 31, 2018. |
6. SALE OF STOCK
6. SALE OF STOCK | 9 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
SALE OF STOCK | 6. SALE OF STOCK On August 22, 2017, the Company entered into agreements with accredited investors for the sale and purchase of 466,668 unregistered shares of its common stock, $0.01 par value at a purchase price of $0.45 per share. The Company received $210,001 in gross proceeds from the offering. The Company is using the net proceeds from this placement for general working capital purposes. Concurrently with the placement, the Company entered into an agreement with an investor for the sale of 88,888 unregistered shares of its common stock for services provided to the Company at a price of $0.45 per share. In connection 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 August 22, 2017 to register the resale by the investors of 555,556 shares of our common stock purchased in the placement. The registration statement was filed with the Securities and Exchange Commission on November 20, 2017 and became effective on December 13, 2017. |
1. SUMMARY OF SIGNIFICANT ACC12
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Mar. 31, 2018 | |
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 third quarter and nine months of the Company’s fiscal year 2018. 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, 2017, together with the Report of Independent Registered Public Accounting Firm filed under cover of the Company’s 2017 Annual Report on Form 10-K, filed with the Securities and Exchange Commission on September 28, 2017. |
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 nine months ended March 31, 2018 and 2017, 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 nine months ended March 31, 2018 and 2017: Three Months Nine Months 2018 2017 2018 2017 Net Income (Loss) - Basic and Diluted $ (279,271 ) $ (163,353 ) $ (368,382 ) $ (768,856 ) Basic and Dilutive Weighted Average Shares Outstanding 10,095,139 8,872,916 9,724,904 8,167,320 Loss Per Share - Basic and Diluted $ (0.03 ) $ (0.02 ) $ (0.04 ) $ (0.09 ) 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 1,042,200 and 5,152,547 for the three months ended March 31, 2018 and 2017, respectively, and approximately 4,739,960 and 5,152,547 for the nine months ended March 31, 2018 and 2017, 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. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-09, Revenue from Contracts with Customers |
1. SUMMARY OF SIGNIFICANT ACC13
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Income (Loss) per Share | Three Months Nine Months 2018 2017 2018 2017 Net Income (Loss) - Basic and Diluted $ (279,271 ) $ (163,353 ) $ (368,382 ) $ (768,856 ) Basic and Dilutive Weighted Average Shares Outstanding 10,095,139 8,872,916 9,724,904 8,167,320 Loss Per Share - Basic and Diluted $ (0.03 ) $ (0.02 ) $ (0.04 ) $ (0.09 ) |
2. INVENTORIES (Tables)
2. INVENTORIES (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | March 31, June 30, Raw Materials $ 427,859 $ 501,346 Work-In-Progress 500,883 388,614 Finished Goods 195,678 165,487 Total Inventories $ 1,124,420 $ 1,055,447 |
3. CAPITAL LEASE OBLIGATION (Ta
3. CAPITAL LEASE OBLIGATION (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Future minimum capital lease payments | Fiscal Year Ending June 30: Amount 2018 $ 2,562 2019 10,250 2020 10,250 2021 5,126 Total minimum payments 28,188 Less: amount representing interest 2,475 Present value of minimum lease payments 25,713 Less: current portion 8,816 $ 16,897 |
4. STOCK-BASED COMPENSATION (Ta
4. STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock-based compensation expense | Three Months Nine Months 2018 2017 2018 2017 Cost of Goods Sold $ – $ 8,669 $ 8,669 $ 26,007 Research and Development Expenses 2,323 6,692 9,335 22,701 Selling, General and Administrative Expenses 6,651 28,949 23,998 106,035 Stock Based Compensation Expense $ 8,974 $ 44,310 $ 42,002 $ 154,743 |
Stock option activity | Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Contractual Life Outstanding at June 30, 2017 1,078,400 $ 0.78 7.01 years Granted 25,000 Expired or Cancelled (61,200 ) Outstanding at March 31, 2018 1,042,200 $ 0.77 6.33 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 3.29 $ 0.27 40,000 $ 0.27 $ 0.40 15,000 9.08 $ 0.40 10,000 $ 0.40 $ 0.48 60,000 8.00 $ 0.48 60,000 $ 0.48 $ 0.50 80,000 8.23 $ 0.50 45,000 $ 0.50 $ 0.50 20,000 3.22 $ 0.50 20,000 $ 0.50 $ 0.55 29,500 3.87 $ 0.55 29,500 $ 0.55 $ 0.64 25,000 9.62 $ 0.64 15,000 $ 0.64 $ 0.73 514,500 7.13 $ 0.73 494,500 $ 0.73 $ 0.85 9,000 4.76 $ 0.85 9,000 $ 0.85 $ 0.90 9,000 5.76 $ 0.90 9,000 $ 0.90 $ 0.95 30,000 6.28 $ 0.95 30,000 $ 0.95 $ 1.20 207,800 3.92 $ 1.20 207,800 $ 1.20 $ 1.25 1,200 0.65 $ 1.25 1,200 $ 1.25 $ 1.35 1,200 1.65 $ 1.35 1,200 $ 1.35 $ 0.27–1.35 1,042,200 6.33 $ 0.77 972,200 $ 0.78 |
1. SUMMARY OF SIGNIFICANT ACC17
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Loss per share) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Accounting Policies [Abstract] | ||||
Net Income (Loss) - Basic and Diluted | $ (279,271) | $ (163,353) | $ (368,382) | $ (768,856) |
Basic and Diluted Weighted Average Shares Outstanding | 10,095,139 | 8,872,916 | 9,724,904 | 8,167,320 |
Loss Per Share - Basic and Diluted | $ (0.03) | $ (0.02) | $ (0.04) | $ (0.09) |
1. SUMMARY OF SIGNIFICANT ACC18
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Accounting Policies [Abstract] | ||||
Outstanding stock options and warrants that were excluded from the computation as their effect was antidilutive | 1,042,200 | 5,152,547 | 4,739,960 | 5,152,547 |
2. INVENTORIES (Details)
2. INVENTORIES (Details) - USD ($) | Mar. 31, 2018 | Jun. 30, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 427,859 | $ 501,346 |
Work-in-progress | 500,883 | 388,614 |
Finished goods | 195,678 | 165,487 |
Total inventories | $ 1,124,420 | $ 1,055,447 |
3. CAPITAL LEASE OBLIGATION (De
3. CAPITAL LEASE OBLIGATION (Details) - USD ($) | Mar. 31, 2018 | Jun. 30, 2017 |
Debt Disclosure [Abstract] | ||
2,018 | $ 2,562 | |
2,019 | 10,250 | |
2,020 | 10,250 | |
2,021 | 5,126 | |
Total minimum payments | 28,188 | |
Less: amount representing interest | 2,475 | |
Present value of minimum lease payments | 25,713 | |
Less: current portion | 8,816 | $ 8,391 |
Capital lease obligation, noncurrent | $ 16,897 | $ 23,564 |
3. CAPITAL LEASE OBLIGATION (21
3. CAPITAL LEASE OBLIGATION (Details Narrative) | Jan. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
Capital lease obligation | $ 51,252 |
4. STOCK-BASED COMPENSATION (De
4. STOCK-BASED COMPENSATION (Details - Stock based compensation) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Mar. 31, 2018 | Mar. 31, 2017 | |
Stock based compensation expense | $ 8,974 | $ 44,310 | $ 42,002 | $ 154,743 |
Cost of Goods Sold [Member] | ||||
Stock based compensation expense | 0 | 8,669 | 8,669 | 26,007 |
Research and Development Expenses [Member] | ||||
Stock based compensation expense | 2,323 | 6,692 | 9,335 | 22,701 |
Selling, General and Administrative Expenses [Member] | ||||
Stock based compensation expense | $ 6,651 | $ 28,949 | $ 23,998 | $ 106,035 |
4. STOCK-BASED COMPENSATION (23
4. STOCK-BASED COMPENSATION (Details - Option activity) - Stock Options [Member] | 9 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Number of Shares | |
Options outstanding, beginning | 1,078,400 |
Options granted | 25,000 |
Options expired or cancelled | (61,200) |
Options outstanding, ending | 1,042,200 |
Weighted Average Exercise Price | |
Weighted average exercise price, beginning price | $ / shares | $ 0.78 |
Weighted average exercise price, ending price | $ / shares | $ 0.77 |
Weighted Average Contractual Life | |
Weighted Average Contractual Life, beginning | 7 years 4 days |
Weighted Average Contractual Life, ending | 6 years 3 months 29 days |
4. STOCK-BASED COMPENSATION (24
4. STOCK-BASED COMPENSATION (Details - Options by exercise price) - $ / shares | 9 Months Ended | |
Mar. 31, 2018 | Jun. 30, 2017 | |
Stock Options [Member] | ||
Range of exercise prices | $0.27-$1.35 | |
Number of shares outstanding | 1,042,200 | 1,078,400 |
Weighted average contractual life | 6 years 3 months 29 days | |
Weighted average exercise price | $ 0.77 | $ 0.78 |
Exercisable number of shares | 972,200 | |
Exercisable weighted average exercise price | $ 0.78 | |
Option 1 [Member] | ||
Range of exercise prices | 0.27 | |
Number of shares outstanding | 40,000 | |
Weighted average contractual life | 3 years 3 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 | 0.40 | |
Number of shares outstanding | 15,000 | |
Weighted average contractual life | 9 years 29 days | |
Weighted average exercise price | $ 0.40 | |
Exercisable number of shares | 10,000 | |
Exercisable weighted average exercise price | $ 0.40 | |
Option 3 [Member] | ||
Range of exercise prices | 0.48 | |
Number of shares outstanding | 60,000 | |
Weighted average contractual life | 8 years | |
Weighted average exercise price | $ 0.48 | |
Exercisable number of shares | 60,000 | |
Exercisable weighted average exercise price | $ 0.48 | |
Option 4 [Member] | ||
Range of exercise prices | 0.50 | |
Number of shares outstanding | 80,000 | |
Weighted average contractual life | 8 years 2 months 23 days | |
Weighted average exercise price | $ 0.50 | |
Exercisable number of shares | 45,000 | |
Exercisable weighted average exercise price | $ 0.50 | |
Option 5 [Member] | ||
Range of exercise prices | 0.50 | |
Number of shares outstanding | 20,000 | |
Weighted average contractual life | 3 years 2 months 19 days | |
Weighted average exercise price | $ 0.50 | |
Exercisable number of shares | 20,000 | |
Exercisable weighted average exercise price | $ 0.50 | |
Option 6 [Member] | ||
Range of exercise prices | 0.55 | |
Number of shares outstanding | 29,500 | |
Weighted average contractual life | 3 years 10 months 14 days | |
Weighted average exercise price | $ 0.55 | |
Exercisable number of shares | 29,500 | |
Exercisable weighted average exercise price | $ 0.55 | |
Option 7 [Member] | ||
Range of exercise prices | 0.64 | |
Number of shares outstanding | 25,000 | |
Weighted average contractual life | 9 years 7 months 13 days | |
Weighted average exercise price | $ 0.64 | |
Exercisable number of shares | 15,000 | |
Exercisable weighted average exercise price | $ 0.64 | |
Option 8 [Member] | ||
Range of exercise prices | 0.73 | |
Number of shares outstanding | 514,500 | |
Weighted average contractual life | 7 years 1 month 16 days | |
Weighted average exercise price | $ 0.73 | |
Exercisable number of shares | 494,500 | |
Exercisable weighted average exercise price | $ 0.73 | |
Option 9 [Member] | ||
Range of exercise prices | 0.85 | |
Number of shares outstanding | 9,000 | |
Weighted average contractual life | 4 years 9 months 3 days | |
Weighted average exercise price | $ 0.85 | |
Exercisable number of shares | 9,000 | |
Exercisable weighted average exercise price | $ 0.85 | |
Option 10 [Member] | ||
Range of exercise prices | 0.90 | |
Number of shares outstanding | 9,000 | |
Weighted average contractual life | 5 years 9 months 3 days | |
Weighted average exercise price | $ 0.90 | |
Exercisable number of shares | 9,000 | |
Exercisable weighted average exercise price | $ 0.90 | |
Option 11 [Member] | ||
Range of exercise prices | 0.95 | |
Number of shares outstanding | 30,000 | |
Weighted average contractual life | 6 years 3 months 11 days | |
Weighted average exercise price | $ 0.95 | |
Exercisable number of shares | 30,000 | |
Exercisable weighted average exercise price | $ 0.95 | |
Option 12 [Member] | ||
Range of exercise prices | 1.20 | |
Number of shares outstanding | 207,800 | |
Weighted average contractual life | 3 years 11 months 1 day | |
Weighted average exercise price | $ 1.20 | |
Exercisable number of shares | 207,800 | |
Exercisable weighted average exercise price | $ 1.20 | |
Option 13 [Member] | ||
Range of exercise prices | 1.25 | |
Number of shares outstanding | 1,200 | |
Weighted average contractual life | 7 months 24 days | |
Weighted average exercise price | $ 1.25 | |
Exercisable number of shares | 1,200 | |
Exercisable weighted average exercise price | $ 1.25 | |
Option 14 [Member] | ||
Range of exercise prices | 1.35 | |
Number of shares outstanding | 1,200 | |
Weighted average contractual life | 1 year 7 months 24 days | |
Weighted average exercise price | $ 1.35 | |
Exercisable number of shares | 1,200 | |
Exercisable weighted average exercise price | $ 1.35 |
4. STOCK-BASED COMPENSATION (25
4. STOCK-BASED COMPENSATION (Details Narrative) | Mar. 31, 2018USD ($) |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Aggregate intrinsic value of "in the money" outstanding | $ 22,650 |
Aggregate intrinsic value of "in the money" exercisable | $ 20,150 |
5. WARRANTS (Details - Warrant
5. WARRANTS (Details - Warrant activity) - USD ($) | 9 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Warrants outstanding | 0 | 666,667 | |
Warrants exercised | 666,667 | ||
Proceeds from warrant exercises | $ 6,667 | $ 0 |
6. SALE OF STOCK (Details Narra
6. SALE OF STOCK (Details Narrative) - USD ($) | 9 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Proceeds from sale of stock | $ 210,001 | $ 780,000 |
Private Placement [Member] | Accredited Investors [Member] | ||
Stock issued, new | 466,668 | |
Proceeds from sale of stock | $ 210,001 | |
Stock issued, price per share | $ 0.45 | |
Private Placement [Member] | An Investor [Member] | ||
Stock issued, new | 88,888 | |
Stock issued, price per share | $ 0.45 |