Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2018 | Oct. 31, 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 | Sep. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 11,897,139 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,019 | |
Entity Small Business | true | |
Entity Emerging Growth | false |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Sep. 30, 2018 | Jun. 30, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 351,314 | $ 402,738 |
Accounts receivable, net | 655,720 | 796,923 |
Inventories, net | 1,113,618 | 1,144,068 |
Prepaid expenses | 57,867 | 70,991 |
Total current assets | 2,178,519 | 2,414,720 |
Property and Equipment: | ||
Machinery and equipment | 2,553,207 | 2,511,638 |
Leasehold improvements | 554,836 | 553,596 |
Furniture and fixtures | 148,303 | 148,303 |
Total | 3,256,346 | 3,213,537 |
Less: Accumulated depreciation and amortization | (3,171,007) | (3,164,051) |
Net fixed assets | 85,339 | 49,486 |
Patents, net | 47,275 | 47,275 |
TOTAL ASSETS | 2,311,133 | 2,511,481 |
Current Liabilities: | ||
Current portion of capital lease obligation | 9,111 | 8,962 |
Accounts payable | 963,581 | 703,538 |
Customer advances | 400,704 | 857,842 |
Accrued employee compensation | 197,765 | 238,590 |
Accrued professional services | 94,970 | 98,000 |
Accrued warranty expense | 25,000 | 25,000 |
Other accrued liabilities | 0 | 912 |
Total current liabilities | 1,691,131 | 1,932,844 |
Capital lease obligation, net of current portion | 12,267 | 14,601 |
Stockholders' Equity: | ||
Common Stock, $0.01 par value - Authorized - 50,000,000 shares; Issued and Outstanding - 10,297,139 shares at September 30, 2018 and 10,197,139 shares at June 30, 2018 | 102,972 | 101,972 |
Additional paid-in capital | 45,826,170 | 45,484,186 |
Accumulated deficit | (45,321,407) | (45,022,122) |
Total stockholders' equity | 607,735 | 564,036 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 2,311,133 | $ 2,511,481 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2018 | Jun. 30, 2018 |
STOCKHOLDERS' EQUITY | ||
Common Stock par value | $ 0.01 | $ 0.01 |
Common Stock shares authorized | 50,000,000 | 50,000,000 |
Common Stock shares issued | 10,297,139 | 10,197,139 |
Common Stock shares outstanding | 10,297,139 | 10,197,139 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||
Revenues | $ 1,559,458 | $ 1,028,746 |
Cost of goods sold | 1,096,951 | 642,004 |
Gross profit | 462,507 | 386,742 |
Research and development expenses, net | 100,798 | 118,427 |
Selling, general and administrative expenses | 660,489 | 296,584 |
Total operating expenses | 761,287 | 415,011 |
Operating loss | (298,780) | (28,269) |
Interest expense | (505) | (516) |
Net loss | $ (299,285) | $ (28,785) |
Loss Per Share: | ||
Basic | $ (0.03) | $ 0 |
Diluted | $ (0.03) | $ 0 |
Weighted Average Common Shares Outstanding: | ||
Basic | 10,261,269 | 9,108,423 |
Diluted | 10,261,269 | 9,108,423 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (299,285) | $ (28,785) |
Adjustments to reconcile net loss to net cash provided from (used in) operating activities | ||
Depreciation and amortization | 6,956 | 8,750 |
Stock-based compensation expense | 342,984 | 26,057 |
Non-cash consulting expense | 0 | (7,425) |
Changes in operating assets and liabilities | ||
Accounts receivable, net | 141,203 | (145,413) |
Inventories, net | 30,450 | 88,162 |
Prepaid expenses | 13,124 | 4,591 |
Accounts payable | 260,043 | 5,381 |
Customer advances | (457,138) | (57,642) |
Accrued liabilities | (44,767) | (25,322) |
Net cash used in operating activities | (6,430) | (131,646) |
Cash Flows from Investing Activities: | ||
Purchases of property and equipment | (42,809) | 0 |
Net cash used in investing activities | (42,809) | 0 |
Cash Flows from Financing Activities: | ||
Payment of capital lease obligation | (2,185) | (2,046) |
Gross proceeds from private placement of common stock | 0 | 210,001 |
Net cash provided from (used in) financing activities | (2,185) | 207,955 |
Net increase (decrease) in cash and cash equivalents | (51,424) | 76,309 |
Cash and cash equivalents, beginning of period | 402,738 | 118,405 |
Cash and cash equivalents, end of period | 351,314 | 194,714 |
Supplemental disclosure of non-cash financing and investing activities: | ||
Issuance of common stock in settlement of accounts payable | 0 | 40,000 |
Offering costs included in accounts payable | $ 0 | $ 2,963 |
1. SUMMARY OF SIGNIFICANT ACCOU
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Sep. 30, 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 first quarter of the Company’s fiscal year 2019. 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, 2018, together with the Report of Independent Registered Public Accounting Firm filed under cover of the Company’s 2018 Annual Report on Form 10-K, filed with the Securities and Exchange Commission on September 27, 2018. 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 months ended September 30, 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 months ended September 30, 2018 and 2017: Three Months 2018 2017 Net Income (Loss) – Basic and Diluted $ (299,285 ) $ (28,785 ) Basic and Diluted Weighted Average Shares Outstanding 10,261,269 9,108,423 Loss Per Share Basic $ (0.03 ) $ (0.00 ) Diluted $ (0.03 ) $ (0.00 ) 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 1,493,200 and 1,745,067 for the three months ended September 30, 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. Accounting Pronouncements Recently Adopted On July 1, 2018, we adopted ASU 2014-09, Revenue from Contracts with Customers. Refer to Note 6 for further information. |
2. INVENTORIES
2. INVENTORIES | 3 Months Ended |
Sep. 30, 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: September 30, June 30, Raw Materials $ 530,079 $ 500,908 Work-In-Progress 371,282 434,536 Finished Goods 212,257 208,624 Total Inventories $ 1,113,618 $ 1,144,068 |
3. CAPITAL LEASE OBLIGATION
3. CAPITAL LEASE OBLIGATION | 3 Months Ended |
Sep. 30, 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 September 30, 2018, future minimum lease payments under the capital lease obligation are as follows: Fiscal Year Ending June 30: Amount 2019 $ 7,688 2020 10,250 2021 5,126 Total minimum payments 23,064 Less: amount representing interest 1,686 Present value of minimum lease payments 21,378 Less: current portion 9,111 $ 12,267 |
4. STOCK-BASED COMPENSATION
4. STOCK-BASED COMPENSATION | 3 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | 4. STOCK-BASED COMPENSATION Stock Options The measurement and recognition of compensation costs for all stock-based awards made to employees and the Board of Directors are based upon fair value over the requisite service period for awards expected to vest. The Company estimates the fair value of share-based awards on the date of grant using the Black-Scholes option-pricing model. The following table summarizes stock-based compensation expense resulting from outstanding stock options for the three months ended September 30, 2018 and 2017: Three Months 2018 2017 Cost of Goods Sold $ – $ 8,669 Research and Development Expenses 2,411 6,692 Selling, General and Administrative Expenses 130,573 10,696 Stock Based Compensation Expense $ 132,984 $ 26,057 No compensation has been capitalized because such amounts would have been immaterial. The following tables summarize stock option activity for the three months ended September 30, 2018: Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Contractual Life Outstanding at June 30, 2018 1,055,700 $ 0.76 6.13 years Granted 450,000 Expired or Cancelled (12,500 ) Outstanding at September 30, 2018 1,493,200 $ 0.75 7.07 years Information related to the stock options outstanding as of September 30, 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 2.79 $ 0.27 40,000 $ 0.27 $ 0.40 15,000 8.58 $ 0.40 10,000 $ 0.40 $ 0.48 60,000 7.50 $ 0.48 60,000 $ 0.48 $ 0.50 100,000 6.73 $ 0.50 100,000 $ 0.50 $ 0.55 42,000 5.56 $ 0.55 37,000 $ 0.55 $ 0.64 25,000 9.12 $ 0.64 15,000 $ 0.64 $ 0.70 100,000 9.85 $ 0.70 – $ 0.70 $ 0.73 853,000 7.95 $ 0.73 658,000 $ 0.73 $ 0.85 9,000 4.26 $ 0.85 9,000 $ 0.85 $ 0.90 9,000 5.26 $ 0.90 9,000 $ 0.90 $ 0.95 30,000 5.78 $ 0.95 30,000 $ 0.95 $ 1.20 207,800 3.42 $ 1.20 207,800 $ 1.20 $ 1.25 1,200 0.15 $ 1.25 1,200 $ 1.25 $ 1.35 1,200 1.15 $ 1.35 1,200 $ 1.35 $ 0.27–$1.35 1,493,200 7.07 $ 0.76 1,178,200 $ 0.78 The aggregate intrinsic value of the Company’s “in-the-money” outstanding and exercisable options as of September 30, 2018 was $1,265,000 and $984,500, respectively. Common Stock Award On August 2, 2018, the Company awarded its Chief Executive Officer 300,000 shares of common stock for services performed through June 30, 2018. As of September 30, 2018, 100,000 shares have been issued. The fair market value of the 300,000 shares on the award date equal to $210,000 has been recorded as general and administrative stock-based compensation expense in the quarter ended September 30, 2018. |
5. WARRANTS
5. WARRANTS | 3 Months Ended |
Sep. 30, 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 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 September 30, 2018. |
6. REVENUE RECOGNITION
6. REVENUE RECOGNITION | 3 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | 6. REVENUE RECOGNITION On July 1, 2018, the Company adopted ASU 2014-09 Revenue from Contracts with Customers (ASC 606) using the modified retrospective method for contracts that were not completed as of July 1, 2018. The adoption of this guidance did not have a material impact on the Company’s consolidated financial statements. With the adoption of ASC 606, the Company elected to apply certain permitted practical expedients. In evaluating the cumulative-effect adjustment to retained earnings, the Company adopted the standard only for contracts that were not complete as of the date of adoption. The impact of ASC 606 on the Company’s results of operations for the three months ended September 30, 2018 was not material. Revenues are recognized as the performance obligations to deliver products or services are satisfied and are recorded based on the amount of consideration the Company expects to receive in exchange for satisfying the performance obligations. Most of the Company’s products and services are marketed to medical device companies almost exclusively in the United States. Products and services are primarily transferred to customers at a point in time based upon when services are performed or product is shipped. Revenues represent the amount of consideration we expect to receive from customers in exchange for transferring products and services. Other selling costs to obtain and fulfill contracts are expensed as incurred due to the short-term nature of a majority of our revenues. The Company extends terms of payment to its customers based on commercially reasonable terms for the markets of its customers, while also considering their credit quality. Shipping and handling costs charged to customers are included in revenues. The Company disaggregates revenues by product and service types as it believes it best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by economic factors. Three Months 2018 2017 Engineering Design Services $ 511,898 $ 419,924 Optical Components 298,057 443,591 Medical Device Products & Assemblies 749,503 165,231 Total Revenues $ 1,559,458 $ 1,028,746 Contract Assets and Liabilities The nature of the Company’s products and services does not generally give rise to contract assets as it typically does not incur costs to fulfill a contract before a product or service is provided to a customer. The Company’s costs to obtain contracts are typically in the form of sales commissions paid to employees. The Company has elected to expense sales commissions associated with obtaining a contract as incurred as the amortization period is generally less than one year. These costs have been recorded in selling, general and administrative expenses. As of September 30, 2018 there were no contract assets recorded in the Company’s Consolidated Balance Sheets. The Company’s contract liabilities arise as a result of unearned revenue received from customers at inception of contracts or where the timing of billing for services precedes satisfaction of our performance obligations. The Company generally satisfies performance obligations within one year from the contract inception date. As of July 1, 2018, contract liabilities were $857,842, which were recorded as customer advances in the Company’s Consolidated Balance Sheets, $481,438 of which was recognized in sales during the three months ended September 30, 2018. As of September 30, 2018, contract liabilities recorded as customer advances were $400,704. |
7. SUBSEQUENT EVENT
7. SUBSEQUENT EVENT | 3 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | 7. SUBSEQUENT EVENT On October 16, 2018 the Company entered into agreements with accredited investors for the sale and purchase of 1,600,000 shares of our common stock, $0.01 par value at a purchase price of $1.25 per share. The Company received $2,000,000 in gross proceeds from the offering. The Company intends to use 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 it is obligated to file a registration statement with the Securities Exchange Commission on or before 90 calendar days after October 16, 2018 to register the resale by the investors of 1,600,000 shares of our common stock purchased in the placement. |
1. SUMMARY OF SIGNIFICANT ACC_2
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Sep. 30, 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 first quarter of the Company’s fiscal year 2019. 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, 2018, together with the Report of Independent Registered Public Accounting Firm filed under cover of the Company’s 2018 Annual Report on Form 10-K, filed with the Securities and Exchange Commission on September 27, 2018. |
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 months ended September 30, 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 months ended September 30, 2018 and 2017: Three Months 2018 2017 Net Income (Loss) – Basic and Diluted $ (299,285 ) $ (28,785 ) Basic and Diluted Weighted Average Shares Outstanding 10,261,269 9,108,423 Loss Per Share Basic $ (0.03 ) $ (0.00 ) Diluted $ (0.03 ) $ (0.00 ) 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 1,493,200 and 1,745,067 for the three months ended September 30, 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. |
Accounting Pronouncements Recently Adopted | Accounting Pronouncements Recently Adopted On July 1, 2018, we adopted ASU 2014-09, Revenue from Contracts with Customers. Refer to Note 6 for further information. |
1. SUMMARY OF SIGNIFICANT ACC_3
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Income (Loss) per Share | Three Months 2018 2017 Net Income (Loss) – Basic and Diluted $ (299,285 ) $ (28,785 ) Basic and Diluted Weighted Average Shares Outstanding 10,261,269 9,108,423 Loss Per Share Basic $ (0.03 ) $ (0.00 ) Diluted $ (0.03 ) $ (0.00 ) |
2. INVENTORIES (Tables)
2. INVENTORIES (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | September 30, June 30, Raw Materials $ 530,079 $ 500,908 Work-In-Progress 371,282 434,536 Finished Goods 212,257 208,624 Total Inventories $ 1,113,618 $ 1,144,068 |
3. CAPITAL LEASE OBLIGATION (Ta
3. CAPITAL LEASE OBLIGATION (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Future minimum capital lease payments | Fiscal Year Ending June 30: Amount 2019 $ 7,688 2020 10,250 2021 5,126 Total minimum payments 23,064 Less: amount representing interest 1,686 Present value of minimum lease payments 21,378 Less: current portion 9,111 $ 12,267 |
4. STOCK-BASED COMPENSATION (Ta
4. STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock-based compensation expense | Three Months 2018 2017 Cost of Goods Sold $ – $ 8,669 Research and Development Expenses 2,411 6,692 Selling, General and Administrative Expenses 130,573 10,696 Stock Based Compensation Expense $ 132,984 $ 26,057 |
Stock option activity | Options Outstanding Number of Shares Weighted Average Exercise Price Weighted Average Contractual Life Outstanding at June 30, 2018 1,055,700 $ 0.76 6.13 years Granted 450,000 Expired or Cancelled (12,500 ) Outstanding at September 30, 2018 1,493,200 $ 0.75 7.07 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 2.79 $ 0.27 40,000 $ 0.27 $ 0.40 15,000 8.58 $ 0.40 10,000 $ 0.40 $ 0.48 60,000 7.50 $ 0.48 60,000 $ 0.48 $ 0.50 100,000 6.73 $ 0.50 100,000 $ 0.50 $ 0.55 42,000 5.56 $ 0.55 37,000 $ 0.55 $ 0.64 25,000 9.12 $ 0.64 15,000 $ 0.64 $ 0.70 100,000 9.85 $ 0.70 – $ 0.70 $ 0.73 853,000 7.95 $ 0.73 658,000 $ 0.73 $ 0.85 9,000 4.26 $ 0.85 9,000 $ 0.85 $ 0.90 9,000 5.26 $ 0.90 9,000 $ 0.90 $ 0.95 30,000 5.78 $ 0.95 30,000 $ 0.95 $ 1.20 207,800 3.42 $ 1.20 207,800 $ 1.20 $ 1.25 1,200 0.15 $ 1.25 1,200 $ 1.25 $ 1.35 1,200 1.15 $ 1.35 1,200 $ 1.35 $ 0.27–$1.35 1,493,200 7.07 $ 0.76 1,178,200 $ 0.78 |
6. REVENUE RECOGNITION (Tables)
6. REVENUE RECOGNITION (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenues | Three Months 2018 2017 Engineering Design Services $ 511,898 $ 419,924 Optical Components 298,057 443,591 Medical Device Products & Assemblies 749,503 165,231 Total Revenues $ 1,559,458 $ 1,028,746 |
1. SUMMARY OF SIGNIFICANT ACC_4
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Loss per share) - USD ($) | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Accounting Policies [Abstract] | ||
Net Income (Loss) - Basic and Diluted | $ (299,285) | $ (28,785) |
Basic and Diluted Weighted Average Shares Outstanding | 10,261,269 | 9,108,423 |
Loss Per Share - Basic | $ (0.03) | $ 0 |
Loss Per Share - Diluted | $ (0.03) | $ 0 |
1. SUMMARY OF SIGNIFICANT ACC_5
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - shares | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Accounting Policies [Abstract] | ||
Outstanding stock options and warrants that were excluded from the computation as their effect was antidilutive | 1,493,200 | 1,745,067 |
2. INVENTORIES (Details)
2. INVENTORIES (Details) - USD ($) | Sep. 30, 2018 | Jun. 30, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 530,079 | $ 500,908 |
Work-in-progress | 371,282 | 434,536 |
Finished goods | 212,257 | 208,624 |
Total inventories | $ 1,113,618 | $ 1,144,068 |
3. CAPITAL LEASE OBLIGATION (De
3. CAPITAL LEASE OBLIGATION (Details) - USD ($) | Sep. 30, 2018 | Jun. 30, 2018 |
Debt Disclosure [Abstract] | ||
2,019 | $ 7,688 | |
2,020 | 10,250 | |
2,021 | 5,126 | |
Total minimum payments | 23,064 | |
Less: amount representing interest | 1,686 | |
Present value of minimum lease payments | 21,378 | |
Less: current portion | 9,111 | $ 8,962 |
Capital lease obligation, noncurrent | $ 12,267 | $ 14,601 |
3. CAPITAL LEASE OBLIGATION (_2
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 | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Stock based compensation expense | $ 132,984 | $ 26,057 |
Cost of Goods Sold [Member] | ||
Stock based compensation expense | 0 | 8,669 |
Research and Development Expenses [Member] | ||
Stock based compensation expense | 2,411 | 6,692 |
Selling, General and Administrative Expenses [Member] | ||
Stock based compensation expense | $ 130,573 | $ 10,696 |
4. STOCK-BASED COMPENSATION (_2
4. STOCK-BASED COMPENSATION (Details - Option activity) - Stock Options [Member] | 3 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Number of Shares | |
Options outstanding, beginning | 1,055,700 |
Options granted | 450,000 |
Options expired or cancelled | (12,500) |
Options outstanding, ending | 1,493,200 |
Weighted Average Exercise Price | |
Weighted average exercise price, beginning price | $ / shares | $ .76 |
Weighted average exercise price, ending price | $ / shares | $ 0.76 |
Weighted Average Contractual Life | |
Weighted Average Contractual Life, beginning | 6 years 1 month 17 days |
Weighted Average Contractual Life, ending | 7 years 25 days |
4. STOCK-BASED COMPENSATION (_3
4. STOCK-BASED COMPENSATION (Details - Options by exercise price) - $ / shares | 3 Months Ended | |
Sep. 30, 2018 | Jun. 30, 2018 | |
Stock Options [Member] | ||
Range of exercise prices | $0.27-$1.35 | |
Number of shares outstanding | 1,493,200 | 1,055,700 |
Weighted average contractual life | 7 years 25 days | |
Weighted average exercise price | $ 0.76 | $ .76 |
Exercisable number of shares | 1,178,200 | |
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 | 2 years 9 months 14 days | |
Weighted average exercise price | $ 0.27 | |
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 | 8 years 6 months 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 | 7 years 6 months | |
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 | 100,000 | |
Weighted average contractual life | 6 years 8 months 23 days | |
Weighted average exercise price | $ 0.50 | |
Exercisable number of shares | 100,000 | |
Exercisable weighted average exercise price | $ 0.50 | |
Option 5 [Member] | ||
Range of exercise prices | 0.55 | |
Number of shares outstanding | 42,000 | |
Weighted average contractual life | 5 years 6 months 22 days | |
Weighted average exercise price | $ 0.55 | |
Exercisable number of shares | 37,000 | |
Exercisable weighted average exercise price | $ 0.55 | |
Option 6 [Member] | ||
Range of exercise prices | 0.64 | |
Number of shares outstanding | 25,000 | |
Weighted average contractual life | 9 years 1 month 13 days | |
Weighted average exercise price | $ 0.64 | |
Exercisable number of shares | 15,000 | |
Exercisable weighted average exercise price | $ 0.64 | |
Option 7 [Member] | ||
Range of exercise prices | 0.70 | |
Number of shares outstanding | 100,000 | |
Weighted average contractual life | 9 years 10 months 6 days | |
Weighted average exercise price | $ 0.70 | |
Exercisable number of shares | 0 | |
Exercisable weighted average exercise price | $ 0.70 | |
Option 8 [Member] | ||
Range of exercise prices | 0.73 | |
Number of shares outstanding | 853,000 | |
Weighted average contractual life | 7 years 11 months 12 days | |
Weighted average exercise price | $ 0.73 | |
Exercisable number of shares | 658,000 | |
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 3 months 4 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 3 months 4 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 | 5 years 9 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 5 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 | 1 month 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 1 month 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 (_4
4. STOCK-BASED COMPENSATION (Details Narrative) | Sep. 30, 2018USD ($) |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Aggregate intrinsic value of "in the money" outstanding | $ 1,265,000 |
Aggregate intrinsic value of "in the money" exercisable | $ 984,500 |
5. WARRANTS (Details - Warrant
5. WARRANTS (Details - Warrant activity) | Sep. 30, 2018shares |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Warrants outstanding | 0 |
6. REVENUE RECOGNITION (Details
6. REVENUE RECOGNITION (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues | $ 1,559,458 | $ 1,028,746 |
Engineering Design Services [Member] | ||
Revenues | 511,898 | 419,924 |
Optical Components [Member] | ||
Revenues | 298,057 | 443,591 |
Medical Device Products and Assemblies [Member] | ||
Revenues | $ 749,503 | $ 165,231 |
6. REVENUE RECOGNITION (Detai_2
6. REVENUE RECOGNITION (Details Narrative) | 3 Months Ended |
Sep. 30, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Contract liabilities, beginning balance | $ 857,842 |
Decrease in contract liabilities, recognized in sales | (481,438) |
Contract liabilities, ending balance | $ 400,704 |