Precision Optics (POCI) S-1 20 Jul 23 IPO registration Financial data

Cover

Cover	9 Months Ended
	Mar. 31, 2023
Cover [Abstract]
Document Type	S-1
Amendment Flag	false
Entity Registrant Name	PRECISION OPTICS CORPORATION, INC.
Entity Central Index Key	0000867840
Entity Tax Identification Number	04-2795294
Entity Incorporation, State or Country Code	MA
Entity Address, Address Line One	22 East Broadway
Entity Address, City or Town	Gardner
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01440
City Area Code	(978)
Local Phone Number	630-1800
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Mar. 31, 2023	Jun. 30, 2022
Current Assets:
Cash and cash equivalents	$ 612,095	$ 605,749
Accounts receivable, net of allowance for doubtful accounts of $74,593 at March 31, 2023 and $44,135 at June 30, 2022	4,389,907	2,663,872
Inventories	2,959,732	3,079,938
Prepaid expenses	307,663	213,448
Total current assets	8,269,397	6,563,007
Fixed Assets:
Machinery and equipment	3,225,483	3,215,412
Leasehold improvements	794,894	786,112
Furniture and fixtures	233,547	219,999
Total fixed assets	4,253,924	4,221,523
Less—Accumulated depreciation and amortization	3,809,303	3,651,843
Net fixed assets	444,621	569,680
Operating lease right-to-use asset	399,007	517,725
Patents, net	249,408	229,398
Goodwill	8,824,210	8,824,210
TOTAL ASSETS	18,186,643	16,704,020
Current Liabilities:
Current portion of financing lease obligation	42,397	40,705
Current maturities of long-term debt	371,429	367,714
Current portion of acquisition earn out liabilities	571,838	166,667
Accounts payable	2,649,248	2,239,175
Contract liabilities	1,387,806	905,113
Accrued compensation and other	1,305,678	716,702
Operating lease liability	166,316	150,565
Total current liabilities	6,494,712	4,586,641
Financing lease obligation, net of current portion	79,701	111,691
Long-term debt, net of current maturities and debt issuance costs	1,681,642	1,961,141
Acquisition earn out liability, net of current portion	0	705,892
Operating lease liability, net of current portion	232,691	367,160
Stockholders’ Equity:
Common stock, $0.01 par value: 50,000,000 shares authorized; issued and outstanding – 5,640,995 shares at March 31, 2023 and 5,638,302 June 30, 2022	56,410	56,383
Additional paid-in capital	57,784,369	57,009,506
Accumulated deficit	(48,142,882)	(48,094,394)
Total stockholders’ equity	9,697,897	8,971,495
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 18,186,643	$ 16,704,020

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($)	Mar. 31, 2023	Jun. 30, 2022
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 74,593	$ 44,135
Common Stock par value	$ 0.01	$ 0.01
Common Stock shares authorized	50,000,000	50,000,000
Common Stock shares issued	5,640,995	5,638,302
Common Stock shares outstanding	5,640,995	5,638,302

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Revenues	$ 5,048,065	$ 4,651,352	$ 16,020,327	$ 10,884,737
Cost of goods sold	3,311,967	2,923,143	10,045,316	7,397,914
Gross profit	1,736,098	1,728,209	5,975,011	3,486,823
Research and development expenses, net	206,375	214,898	660,518	433,248
Selling, general and administrative expenses	2,022,991	1,574,432	5,338,498	3,974,824
Business acquisition expenses	0	0	0	172,174
Total operating expenses	2,229,366	1,789,330	5,999,016	4,580,246
Operating income (loss)	(493,268)	(61,121)	(24,005)	(1,093,423)
Other income (expense)
Interest expense	(48,124)	(52,778)	(167,443)	(104,290)
Gain on revaluation of contingent earn-out liability	142,960	0	142,960	0
Net income (loss)	$ (398,432)	$ (113,899)	$ (48,488)	$ (1,197,713)

CONSOLIDATED STATEMENTS OF OP_2

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Parenthetical) - $ / shares	3 Months Ended				9 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Income Statement [Abstract]
Earnings Per Share, Basic	$ (0.07)	$ 0.09	$ (0.03)	$ (0.02)	$ (0.01)	$ (0.23)
Earnings Per Share, Diluted	$ (0.07)	$ 0.09	$ (0.03)	$ (0.02)	$ (0.01)	$ (0.23)
Basic	5,640,473			5,600,953	5,639,015	5,181,896
Fully Diluted	5,640,473			5,600,953	5,639,015	5,181,896

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Common Stock Subscribed [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Jun. 30, 2021	$ 44,274	$ 50,552,831		$ (47,165,978)	$ 3,431,127
Beginning balance, shares at Jun. 30, 2021	4,427,432
Stock-based compensation		160,071			160,071
Proceeds from private placement of common stock subscribed, net of estimated issuance costs of $10,000		(10,000)	1,030,000		1,020,000
Net loss				(576,801)	(576,801)
Ending balance, value at Sep. 30, 2021	$ 44,274	50,702,902	1,030,000	(47,742,779)	4,034,397
Ending balance, shares at Sep. 30, 2021	4,427,432
Beginning balance, value at Jun. 30, 2021	$ 44,274	50,552,831		(47,165,978)	3,431,127
Beginning balance, shares at Jun. 30, 2021	4,427,432
Net loss					(1,197,713)
Ending balance, value at Mar. 31, 2022	$ 56,292	56,835,740	0	(48,363,691)	8,528,341
Ending balance, shares at Mar. 31, 2022	5,629,219
Beginning balance, value at Sep. 30, 2021	$ 44,274	50,702,902	1,030,000	(47,742,779)	4,034,397
Beginning balance, shares at Sep. 30, 2021	4,427,432
Stock-based compensation		330,451			330,451
Net loss				(507,013)	(507,013)
Proceeds from exercise of stock options	$ 50	16,600			16,650
Exercise of stock options net of 32,018 shares withheld, shares	875
Proceeds from exercise of stock option, shares	5,000
Exercise of stock options net of 32,018 shares withheld	$ 9	(9)	0	0	0
Exercise Of Stock Options Net Of Shares Withheld Value
Proceeds from private placement of common stock	$ 3,125	1,496,875	(1,030,000)		470,000
Proceeds from private placement of common stock, shares	312,500
Issuance of common stock in business acquisition	$ 8,333	4,816,667			4,825,000
Issuance of common stock in business acquisition, shares	833,333
Issuance of common stock for employee services	$ 30	19,970			20,000
Issuance of common stock for employee services, shares	3,031
Ending balance, value at Dec. 31, 2021	$ 55,821	57,383,456		(48,249,792)	9,189,485
Ending balance, shares at Dec. 31, 2021	5,582,171
Correction of error in valuation of stock issued in business acquisition		(825,000)			(825,000)
Stock-based compensation		231,115			231,115
Net loss				(113,899)	(113,899)
Proceeds from exercise of stock options	$ 144	46,496			46,640
Exercise of stock options net of 32,018 shares withheld, shares	32,648
Proceeds from exercise of stock option, shares	14,400
Exercise of stock options net of 32,018 shares withheld	$ 327	(327)	0	0	0
Ending balance, value at Mar. 31, 2022	$ 56,292	56,835,740	0	(48,363,691)	8,528,341
Ending balance, shares at Mar. 31, 2022	5,629,219
Beginning balance, value at Jun. 30, 2022	$ 56,383	57,009,506		(48,094,394)	8,971,495
Beginning balance, shares at Jun. 30, 2022	5,638,302
Stock-based compensation		74,990			74,990
Net loss				(158,724)	(158,724)
Ending balance, value at Sep. 30, 2022	$ 56,383	57,084,496		(48,253,118)	8,887,761
Ending balance, shares at Sep. 30, 2022	5,638,302
Beginning balance, value at Jun. 30, 2022	$ 56,383	57,009,506		(48,094,394)	8,971,495
Beginning balance, shares at Jun. 30, 2022	5,638,302
Net loss					(48,488)
Ending balance, value at Mar. 31, 2023	$ 56,410	57,784,369	0	(48,142,882)	9,697,897
Ending balance, shares at Mar. 31, 2023	5,640,995
Beginning balance, value at Sep. 30, 2022	$ 56,383	57,084,496		(48,253,118)	8,887,761
Beginning balance, shares at Sep. 30, 2022	5,638,302
Stock-based compensation		244,786			244,786
Net loss				508,668	508,668
Ending balance, value at Dec. 31, 2022	$ 56,383	57,329,282		(47,744,450)	9,641,215
Ending balance, shares at Dec. 31, 2022	5,638,302
Stock-based compensation		450,014			450,014
Net loss				(398,432)	(398,432)
Proceeds from exercise of stock options	$ 20	5,080			5,100
Exercise of stock options net of 32,018 shares withheld, shares	693
Proceeds from exercise of stock option, shares	2,000
Exercise of stock options net of 32,018 shares withheld	$ 7	(7)	0	0	0
Ending balance, value at Mar. 31, 2023	$ 56,410	$ 57,784,369	$ 0	$ (48,142,882)	$ 9,697,897
Ending balance, shares at Mar. 31, 2023	5,640,995

CONSOLIDATED STATEMENTS OF ST_2

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021
Statement of Stockholders' Equity [Abstract]
Share-Based Payment Arrangement, Shares Withheld for Tax Withholding Obligation	307	32,018	478
Payment of stock issuance costs				$ 10,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss	$ (48,488)	$ (1,197,713)
Adjustments to Reconcile Net Loss to Net Cash Used In Operating Activities -
Gain on revaluation of contingent earn-out liability	(142,960)	0
Depreciation and amortization	157,460	173,887
Stock-based compensation expense	769,790	741,637
Non-cash interest expense	8,906	0
Changes in Operating Assets and Liabilities, net of effects of business acquisition -
Accounts receivable, net	(1,726,035)	(791,959)
Inventories, net	120,206	(623,817)
Due from related party	0	84,210
Prepaid expenses	(94,215)	(85,791)
Accounts payable	410,073	1,118,149
Customer advances	482,693	(258,487)
Accrued compensation and other	588,976	(40,083)
Net Cash Provided By (Used In) Operating Activities	526,406	(879,967)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additional patent costs	(20,010)	(23,098)
Purchases of fixed assets	(32,401)	(59,562)
Acquisition of business	0	(421,729)
Net Cash Used In Investing Activities	(52,411)	(504,389)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of financing lease obligation	(30,298)	(28,546)
Payments of long-term debt	(275,784)	(154,453)
Payment of debt issuance costs	0	(26,000)
Payment of acquisition earn-out liability	(166,667)	0
Gross proceeds from private placement of common stock	0	1,500,000
Gross proceeds from exercise of stock options	5,100	63,290
Net Cash (Used In) Provided By Financing Activities	(467,649)	1,354,291
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	6,346	(30,065)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	605,749	861,650
CASH AND CASH EQUIVALENTS, END OF PERIOD	612,095	831,585
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES:
Offering costs included in accrued compensation and other	0	10,000
Issuance of common stock for services	0	0
Acquisition of business financed with long-term debt	$ 0	$ 2,600,000

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Mar. 31, 2023
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 2023. 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, 2022, together with the Report of Independent Registered Public Accounting Firm filed under cover of the Company’s 2022 Annual Report on Form 10-K, filed with the Securities and Exchange Commission on September 27, 2022. Reclassifications Certain reclassifications have been made to conform the prior period consolidated financial statements to the current period. Reverse Stock Split In February 2022, the Company’s Board of Directors authorized a reverse split of the Company’s outstanding shares of common stock within a stated range of 1:1.5 to 1:3, which was subsequently approved by stockholders holding more than a majority of the outstanding shares of Common Stock at the Company’s Annual Meeting on April 8, 2022. The Company effected the reverse stock split on a one-for-three As a result of the reverse stock split, every three shares of issued and outstanding common stock were automatically combined into one issued and outstanding share of common stock, without any change in the par value per share or the number of the Company’s authorized shares. The reverse stock split reduced the number of shares of common stock outstanding from 16,915,089 5,638,302 Unless otherwise noted, all prior year share amounts and per share calculations throughout these financial statements have been restated to reflect the impact of this 1:3 reverse stock split and to provide data on a comparable basis. Such restatements include calculations regarding the Company’s weighted-average shares, and earnings per share, as well as disclosures regarding the Company’s stock-based compensation plans. 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. 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 (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. For the three and nine months ended March 31, 2023 and 2022, the effect of such securities was antidilutive and not included in the fully diluted calculation because of the net loss generated during those periods. The following is the calculation of income (loss) per share for the three and nine months ended March 31, 2023 and 2022: Schedule of earnings per share Three Months Nine Months 2023 2022 2023 2022 Net Income (Loss) - Basic and Diluted $ (398,432 ) $ (113,899 ) $ (48,488 ) $ (1,197,713 ) Weighted Average Shares Outstanding Basic and Fully Diluted 5,640,473 5,600,953 5,639,015 5,181,896 Income (Loss) Per Share Basic and Fully Diluted $ (0.07 ) $ (0.02 ) $ (0.01 ) $ (0.23 ) The number of shares issuable upon the exercise of outstanding stock options that were excluded from the computation as their effect was antidilutive was 1,058,630 939,166 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. Goodwill and Patents Long-lived assets such as goodwill and patents are capitalized when acquired and reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable. Impairment of the carrying value of long-lived assets such as goodwill and patents would be indicated if the best estimate of future undiscounted cash flows expected to be generated by the asset grouping is less than its carrying value. If an impairment is indicated, any loss is measured as the difference between estimated fair value and carrying value and is recognized in operating income or loss. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. No such impairments of goodwill or patents have been estimated by management as of March 31, 2023.

REVISION OF THE FIRST AND SECON

REVISION OF THE FIRST AND SECOND QUARTER FISCAL YEAR 2023 UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	9 Months Ended
	Mar. 31, 2023
Accounting Changes and Error Corrections [Abstract]
REVISION OF THE FIRST AND SECOND QUARTER FISCAL YEAR 2023 UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	2. REVISION OF THE FIRST AND SECOND QUARTER FISCAL YEAR 2023 UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS During the third quarter of fiscal year 2023, the Company identified errors in the accrual of certain costs for the fiscal quarters ended September 30, 2022 and December 31, 2022, which resulted in an understatement of accounts payable and costs of goods sold for those two quarters. The corrections of these errors impacted the unaudited condensed consolidated financial statements for the first and second quarters of fiscal year 2023. The Company assessed the applicable guidance issued by the Securities and Exchange Commission (SEC) and the Financial Accounting Standards Board (FASB) and concluded these misstatements were not material, individually or in the aggregate, to its unaudited condensed consolidated financial statements for the aforementioned interim periods. However, because of the significance of these items, and to facilitate comparisons among periods, the Company decided to revise the previously issued first and second quarter unaudited condensed consolidated financial information by increasing accounts payable and cost of goods sold by $85,213 and $125,752 in the quarters ended September 30, 2022 and December 31, 2022, respectively. These quarterly and year to date financial statements will be revised in subsequent filings with the Securities and Exchange Commission that include such statements, including when the first and second quarter Form 10-Q’s are filed for fiscal year 2024. Accumulated deficit at January 1, 2023 in the accompanying statement of stockholders’ equity for the quarter ended March 31, 2023 was made larger by $210,965 due to the effects of the increased expense accruals for the first and second quarters of fiscal year 2023. The following are selected line items from the financial statements illustrating the effect of the error corrections for the quarters ended September 30, 2022 and December 31, 2022: Schedule of error corrections Quarter Ended September 30, 2022 As Previously Reported Adjustment(1) As Revised Revenues $ 5,085,301 $ – $ 5,085,301 Cost of goods sold 3,360,647 85,213 3,445,860 Gross Profit 1,724,654 (85,213 ) 1,639,441 Operating loss (16,589 ) (85,213 ) (101,802 ) Net loss (73,511 ) (85,213 ) (158,724 ) Net loss per share, basic and fully diluted (0.01 ) (0.02 ) (0.03 ) Quarter Ended December 31, 2022 As Previously Reported Adjustment(1) As Revised Revenues $ 5,886,961 $ – $ 5,886,961 Cost of goods sold 3,161,737 125,752 3,287,489 Gross Profit 2,725,224 (125,752 ) 2,599,472 Operating income 696,817 (125,752 ) 571,065 Net income 634,420 (125,752 ) 508,668 Net income per share, basic 0.11 (0.02 ) 0.09 Net income per share, fully diluted 0.11 (0.02 ) 0.09 (1) The errors in each of the two fiscal quarters resulted from the omission of invoices from a small identifiable group of outside contractors used for certain services relating to research and development activities. In addition to the above adjustments, trade accounts payable will be increased in future filings by $85,213 and $210,965 as of September 30, 2022 and December 31, 2022, respectively.

BUSINESS ACQUISITION

BUSINESS ACQUISITION	9 Months Ended
	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
BUSINESS ACQUISITION	3. BUSINESS ACQUISITION On October 4, 2021, the Company acquired substantially all of the assets of Lighthouse Imaging, LLC, of Windham, Maine, a medical optics and digital imaging business operating as a designer and manufacturer of advanced optical imaging systems and accessories with a strong expertise in electrical engineering and development of end-to-end medical visualization devices. The actual results of operations of the Lighthouse division are included in the accompanying consolidated financial statements as of, and for the three and nine months ended, March 31, 2023, and for the six months ended March 31, 2022. The purchase price for Lighthouse Imaging included $ 1,500,000 750,000 The second $ 750,000 600,000 150,000 600,000 Consolidated unaudited actual and pro forma results of operations for the Company are presented below assuming that the acquisition of the Lighthouse division had occurred on July 1, 2021. Pro forma operating results include net adjustments resulting from the acquisition transaction during the three months ended September 30, 2021. Schedule of consolidated pro forma results Three Months Nine Months 2023 2022 2023 2022 (Actual) (Actual) (Actual) (Pro Forma) Revenues $ 5,048,065 $ 4,651,352 $ 16,020,327 $ 12,329,074 Net loss (398,432 ) (113,899 ) (48,488 ) (1,140,418 ) Net loss per share: Basic and fully diluted $ (0.07 ) $ (0.02 ) $ (0.01 ) $ (0.20 ) Pro forma financial information is not necessarily indicative of the Company’s actual results of operations if the acquisition had been completed at the date indicated, nor is it necessarily an indication of future operating results. Amounts do not include any operating efficiencies or cost saving that the Company believes may be achievable.

INVENTORIES

INVENTORIES	9 Months Ended
	Mar. 31, 2023
Inventory Disclosure [Abstract]
INVENTORIES	4. INVENTORIES Inventories are stated at the lower of cost (first-in, first-out) or market and consisted of the following: Schedule of inventory March 31, June 30, Raw Materials $ 1,402,292 $ 1,414,996 Work-In-Progress 393,078 518,251 Finished Goods 1,164,362 1,146,691 Total Inventories $ 2,959,732 $ 3,079,938

BANK FINANCING ACTIVITIES

BANK FINANCING ACTIVITIES	9 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
BANK FINANCING ACTIVITIES	5. BANK FINANCING ACTIVITIES Bank Line of Credit On October 4, 2021, the Company entered into a Loan Agreement with Main Street Bank of Marlborough, Massachusetts, which provided for a $ 2,600,000 250,000 500,000 9.50 Long-Term Debt Long-term debt consists of the following at March 31, 2023: Schedule of long-term debt Amount Term Loan Note payable to Main Street Bank with monthly 30,952 7.00 October 15, 2028 $ 2,073,808 Less current maturities (371,429 ) Less debt issuance costs, net of accumulated amortization of $ 2,789 (20,737 ) Long-term debt, net of current portion of debt issuance costs $ 1,681,642 At March 31, 2023 principal payments due on the Term Loan Note payable are as follows: Schedule of principal payments due term loan note payable Fiscal Year Ending June 30: 2023 $ 92,856 2024 371,429 2025 371,429 2026 371,429 2027 371,429 Thereafter 495,236 Total long term debt $ 2,073,808

LEASE OBLIGATIONS

LEASE OBLIGATIONS	9 Months Ended
	Mar. 31, 2023
Lease Obligations
LEASE OBLIGATIONS	6. LEASE OBLIGATIONS In March 2021 the Company entered into a five-year financing lease in the amount of $ 161,977 47,750 114,695 On July 1, 2019 the Company entered into a three-year operating lease for its facility in El Paso, Texas, and in February 2022 the Company entered into an extension of the lease for an additional three years through June 2025. Remaining minimum lease payments at March 31, 2023 total $ 101,928 15,973 15,705 On October 4, 2021 the Company assumed the remaining term of the Windham, Maine lease as part of the Lighthouse acquisition. The lease expires on July 31, 2025. Remaining minimum lease payments at March 31, 2023 total $ 321,365 36,495 Included in the accompanying balance sheet at March 31, 2023 is a right-of-use asset of $ 399,007 166,316 232,691 At March 31, 2023 future minimum lease payments under the financing lease and operating lease obligations are as follows: Future minimum lease payments Fiscal Year Ending June 30: Financing Leases Operating Lease 2023 $ 12,155 $ 45,389 2024 48,619 182,652 2025 43,917 183,775 2026 28,028 11,477 Total Minimum Payments 132,719 $ 423,293 Less: amount representing interest 10,621 Present value of minimum lease payments 122,098 Less: current portion 42,397 $ 79,701 The Company’s operating leases for its Gardner, Massachusetts office, production and storage spaces plus an equipment lease have expired and are continuing on a month-to-month tenant at will basis. Rent expense on these operating leases was $ 150,862 152,078

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
	Mar. 31, 2023
Equity [Abstract]
STOCK-BASED COMPENSATION	7. STOCK-BASED COMPENSATION Stock Options The following table summarizes stock-based compensation expense for the three and nine months ended March 31, 2023 and 2022: Schedule of stock-based compensation expense Three Months Nine Months 2023 2022 2023 2022 Cost of Goods Sold $ 9,556 $ 34,712 $ 25,410 $ 91,542 Research and Development 41,140 70,237 122,198 164,036 Selling, General and Administrative 399,318 126,166 622,182 466,059 Stock Based Compensation Expense $ 450,014 $ 231,115 $ 769,790 $ 721,637 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, 2023: Schedule of stock option activity Options Outstanding Number of Weighted Average Weighted Average Outstanding at June 30, 2022 904,626 $ 4.00 7.08 Exercised (3,000 ) 2.55 – Granted 179,003 6.03 – Cancelled (21,999 ) 5.84 – Outstanding at March 31, 2023 1,058,630 $ 4.31 6.79 Information related to the stock options outstanding as of March 31, 2023 is as follows: Schedule of stock options outstanding by exercise price range Range of Number of Weighted- Weighted- Exercisable Exercisable $ 1.44 20,000 3.00 $ 1.44 20,000 $ 1.44 $ 1.50 26,666 3.22 $ 1.50 26,666 $ 1.50 $ 1.65 5,000 5.01 $ 1.65 5,000 $ 1.65 $ 2.10 33,333 5.35 $ 2.10 33,333 $ 2.10 $ 2.19 208,996 3.92 $ 2.19 208,996 $ 2.19 $ 2.70 12,000 1.19 $ 2.70 12,000 $ 2.70 $ 3.75 15,000 6.97 $ 3.75 15,000 $ 3.75 $ 3.90 146,325 6.20 $ 3.90 146,325 $ 3.90 $ 4.20 23,332 7.64 $ 4.20 23,332 $ 4.20 $ 4.26 33,333 6.45 $ 4.26 33,333 $ 4.26 $ 4.35 1,666 7.94 $ 4.35 1,666 $ 4.35 $ 4.50 23,332 6.69 $ 4.50 23,332 $ 4.50 $ 5.04 179,997 8.18 $ 5.04 179,997 $ 5.04 $ 5.43 10,000 8.51 $ 5.43 10,000 $ 5.43 $ 5.61 10,000 9.12 $ 5.61 – $ – $ 5.85 58,336 8.76 $ 5.85 2,780 $ 5.85 $ 5.93 4,000 9.78 $ 5.93 4,000 $ 5.93 $ 6.00 29,997 7.97 $ 6.00 10,000 $ 6.00 $ 6.26 90,000 9.75 $ 6.26 90,000 $ 6.26 $ 6.27 80,653 8.86 $ 6.27 26,884 $ 6.27 $ 6.78 46,664 8.64 $ 6.78 35,554 $ 6.78 1.44 6.78 1,058,630 6.79 $ 4.31 908,198 $ 4.02 The aggregate intrinsic value of the Company’s in-the-money outstanding and exercisable options as of March 31, 2023 was $ 2,623,768 2,515,877

REVENUE RECOGNITION

REVENUE RECOGNITION	9 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
REVENUE RECOGNITION	8. REVENUE RECOGNITION 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 with over 93% of all revenues to customers 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. Other selling costs to obtain and fulfill contracts are expensed as incurred due to the short-term nature of a majority of its contracts. 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 revenue. 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. Technology rights revenue represents amounts paid by customers for rights to use the Company’s intellectual property including product designs, patents, and know-how to manufacture and commercialize their products under specified contractual conditions. Revenues are comprised of the following for the three and nine months ended March 31, 2023 and 2022: Schedule of disaggregation of revenues Three Months Nine Months 2023 2022 2023 2022 Engineering Design Services $ 1,400,780 $ 1,532,414 $ 4,745,358 $ 3,659,667 Optical Components 2,609,983 1,927,963 7,842,804 4,873,294 Medical Device Products and Assemblies 1,037,302 1,190,975 2,832,165 2,351,776 Technology Rights – – 600,000 – Total Revenues $ 5,048,065 $ 4,651,352 $ 16,020,327 $ 10,884,737 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 March 31, 2023, there were no contract assets recorded in the Company’s Consolidated Balance Sheets. The Company’s contract liabilities arise from 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. Contract liabilities, which were recorded as customer advances in the Company’s Consolidated Balance Sheets, and unearned revenue are comprised of the following: Schedule of contract liabilities Three Months Nine Months 2023 2022 2023 2022 Contract Liabilities, Beginning of Period $ 794,981 $ 1,137,470 $ 905,113 $450,084 Assumed in Business Acquisition – – – 826,679 Unearned Revenue Received from Customers 1,020,669 774,316 1,917,775 1,388,700 Revenue Recognized (427,844 ) (893,511 ) (1,435,082 ) (1,647,188) Contract Liabilities, End of Period $ 1,387,806 $ 1,018,275 $ 1,387,806 $1,018,275

COVID-19 PANDEMIC

COVID-19 PANDEMIC	9 Months Ended
	Mar. 31, 2023
Covid-19 Pandemic
COVID-19 PANDEMIC	9. COVID-19 PANDEMIC The COVID-19 world-wide pandemic that began during the quarter ended March 31, 2020 and the domestic and international impact of policy decisions being made in major countries around the world has had, and could continue to have, an adverse impact on the Company’s sources of supply, current and future orders from its customers, collection of amounts owed to the Company from its customers, its internal operating procedures, and the Company’s overall financial condition.

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Principles of Consolidation and Operations	Principles of Consolidation and Operations The accompanying consolidated financial statements include the accounts of Precision Optics Corporation, Inc. and its wholly-owned subsidiaries (the “Company”). All significant intercompany accounts and transactions have been eliminated in consolidation. These consolidated financial statements have been prepared by the Company, without audit, and reflect normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of the results of the third quarter and nine months of the Company’s fiscal year 2023. 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, 2022, together with the Report of Independent Registered Public Accounting Firm filed under cover of the Company’s 2022 Annual Report on Form 10-K, filed with the Securities and Exchange Commission on September 27, 2022.
Reclassifications	Reclassifications Certain reclassifications have been made to conform the prior period consolidated financial statements to the current period.
Reverse Stock Split	Reverse Stock Split In February 2022, the Company’s Board of Directors authorized a reverse split of the Company’s outstanding shares of common stock within a stated range of 1:1.5 to 1:3, which was subsequently approved by stockholders holding more than a majority of the outstanding shares of Common Stock at the Company’s Annual Meeting on April 8, 2022. The Company effected the reverse stock split on a one-for-three As a result of the reverse stock split, every three shares of issued and outstanding common stock were automatically combined into one issued and outstanding share of common stock, without any change in the par value per share or the number of the Company’s authorized shares. The reverse stock split reduced the number of shares of common stock outstanding from 16,915,089 5,638,302 Unless otherwise noted, all prior year share amounts and per share calculations throughout these financial statements have been restated to reflect the impact of this 1:3 reverse stock split and to provide data on a comparable basis. Such restatements include calculations regarding the Company’s weighted-average shares, and earnings per share, as well as disclosures regarding the Company’s stock-based compensation plans.
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.
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 (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. For the three and nine months ended March 31, 2023 and 2022, the effect of such securities was antidilutive and not included in the fully diluted calculation because of the net loss generated during those periods. The following is the calculation of income (loss) per share for the three and nine months ended March 31, 2023 and 2022: Schedule of earnings per share Three Months Nine Months 2023 2022 2023 2022 Net Income (Loss) - Basic and Diluted $ (398,432 ) $ (113,899 ) $ (48,488 ) $ (1,197,713 ) Weighted Average Shares Outstanding Basic and Fully Diluted 5,640,473 5,600,953 5,639,015 5,181,896 Income (Loss) Per Share Basic and Fully Diluted $ (0.07 ) $ (0.02 ) $ (0.01 ) $ (0.23 ) The number of shares issuable upon the exercise of outstanding stock options that were excluded from the computation as their effect was antidilutive was 1,058,630 939,166
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.
Goodwill and Patents	Goodwill and Patents Long-lived assets such as goodwill and patents are capitalized when acquired and reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable. Impairment of the carrying value of long-lived assets such as goodwill and patents would be indicated if the best estimate of future undiscounted cash flows expected to be generated by the asset grouping is less than its carrying value. If an impairment is indicated, any loss is measured as the difference between estimated fair value and carrying value and is recognized in operating income or loss. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. No such impairments of goodwill or patents have been estimated by management as of March 31, 2023.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Schedule of earnings per share	Schedule of earnings per share Three Months Nine Months 2023 2022 2023 2022 Net Income (Loss) - Basic and Diluted $ (398,432 ) $ (113,899 ) $ (48,488 ) $ (1,197,713 ) Weighted Average Shares Outstanding Basic and Fully Diluted 5,640,473 5,600,953 5,639,015 5,181,896 Income (Loss) Per Share Basic and Fully Diluted $ (0.07 ) $ (0.02 ) $ (0.01 ) $ (0.23 )

REVISION OF THE FIRST AND SEC_2

REVISION OF THE FIRST AND SECOND QUARTER FISCAL YEAR 2023 UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Tables)	9 Months Ended
	Mar. 31, 2023
Accounting Changes and Error Corrections [Abstract]
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block]	Schedule of error corrections Quarter Ended September 30, 2022 As Previously Reported Adjustment(1) As Revised Revenues $ 5,085,301 $ – $ 5,085,301 Cost of goods sold 3,360,647 85,213 3,445,860 Gross Profit 1,724,654 (85,213 ) 1,639,441 Operating loss (16,589 ) (85,213 ) (101,802 ) Net loss (73,511 ) (85,213 ) (158,724 ) Net loss per share, basic and fully diluted (0.01 ) (0.02 ) (0.03 ) Quarter Ended December 31, 2022 As Previously Reported Adjustment(1) As Revised Revenues $ 5,886,961 $ – $ 5,886,961 Cost of goods sold 3,161,737 125,752 3,287,489 Gross Profit 2,725,224 (125,752 ) 2,599,472 Operating income 696,817 (125,752 ) 571,065 Net income 634,420 (125,752 ) 508,668 Net income per share, basic 0.11 (0.02 ) 0.09 Net income per share, fully diluted 0.11 (0.02 ) 0.09 (1) The errors in each of the two fiscal quarters resulted from the omission of invoices from a small identifiable group of outside contractors used for certain services relating to research and development activities. In addition to the above adjustments, trade accounts payable will be increased in future filings by $85,213 and $210,965 as of September 30, 2022 and December 31, 2022, respectively.

BUSINESS ACQUISITION (Tables)

BUSINESS ACQUISITION (Tables)	9 Months Ended
	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Schedule of consolidated pro forma results	Schedule of consolidated pro forma results Three Months Nine Months 2023 2022 2023 2022 (Actual) (Actual) (Actual) (Pro Forma) Revenues $ 5,048,065 $ 4,651,352 $ 16,020,327 $ 12,329,074 Net loss (398,432 ) (113,899 ) (48,488 ) (1,140,418 ) Net loss per share: Basic and fully diluted $ (0.07 ) $ (0.02 ) $ (0.01 ) $ (0.20 )

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Mar. 31, 2023
Inventory Disclosure [Abstract]
Schedule of inventory	Schedule of inventory March 31, June 30, Raw Materials $ 1,402,292 $ 1,414,996 Work-In-Progress 393,078 518,251 Finished Goods 1,164,362 1,146,691 Total Inventories $ 2,959,732 $ 3,079,938

BANK FINANCING ACTIVITIES (Tabl

BANK FINANCING ACTIVITIES (Tables)	9 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Schedule of long-term debt	Schedule of long-term debt Amount Term Loan Note payable to Main Street Bank with monthly 30,952 7.00 October 15, 2028 $ 2,073,808 Less current maturities (371,429 ) Less debt issuance costs, net of accumulated amortization of $ 2,789 (20,737 ) Long-term debt, net of current portion of debt issuance costs $ 1,681,642
Schedule of principal payments due term loan note payable	Schedule of principal payments due term loan note payable Fiscal Year Ending June 30: 2023 $ 92,856 2024 371,429 2025 371,429 2026 371,429 2027 371,429 Thereafter 495,236 Total long term debt $ 2,073,808

LEASE OBLIGATIONS (Tables)

LEASE OBLIGATIONS (Tables)	9 Months Ended
	Mar. 31, 2023
Lease Obligations
Future minimum lease payments	Future minimum lease payments Fiscal Year Ending June 30: Financing Leases Operating Lease 2023 $ 12,155 $ 45,389 2024 48,619 182,652 2025 43,917 183,775 2026 28,028 11,477 Total Minimum Payments 132,719 $ 423,293 Less: amount representing interest 10,621 Present value of minimum lease payments 122,098 Less: current portion 42,397 $ 79,701

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Schedule of stock-based compensation expense	Schedule of stock-based compensation expense Three Months Nine Months 2023 2022 2023 2022 Cost of Goods Sold $ 9,556 $ 34,712 $ 25,410 $ 91,542 Research and Development 41,140 70,237 122,198 164,036 Selling, General and Administrative 399,318 126,166 622,182 466,059 Stock Based Compensation Expense $ 450,014 $ 231,115 $ 769,790 $ 721,637
Schedule of stock option activity	Schedule of stock option activity Options Outstanding Number of Weighted Average Weighted Average Outstanding at June 30, 2022 904,626 $ 4.00 7.08 Exercised (3,000 ) 2.55 – Granted 179,003 6.03 – Cancelled (21,999 ) 5.84 – Outstanding at March 31, 2023 1,058,630 $ 4.31 6.79
Schedule of stock options outstanding by exercise price range	Schedule of stock options outstanding by exercise price range Range of Number of Weighted- Weighted- Exercisable Exercisable $ 1.44 20,000 3.00 $ 1.44 20,000 $ 1.44 $ 1.50 26,666 3.22 $ 1.50 26,666 $ 1.50 $ 1.65 5,000 5.01 $ 1.65 5,000 $ 1.65 $ 2.10 33,333 5.35 $ 2.10 33,333 $ 2.10 $ 2.19 208,996 3.92 $ 2.19 208,996 $ 2.19 $ 2.70 12,000 1.19 $ 2.70 12,000 $ 2.70 $ 3.75 15,000 6.97 $ 3.75 15,000 $ 3.75 $ 3.90 146,325 6.20 $ 3.90 146,325 $ 3.90 $ 4.20 23,332 7.64 $ 4.20 23,332 $ 4.20 $ 4.26 33,333 6.45 $ 4.26 33,333 $ 4.26 $ 4.35 1,666 7.94 $ 4.35 1,666 $ 4.35 $ 4.50 23,332 6.69 $ 4.50 23,332 $ 4.50 $ 5.04 179,997 8.18 $ 5.04 179,997 $ 5.04 $ 5.43 10,000 8.51 $ 5.43 10,000 $ 5.43 $ 5.61 10,000 9.12 $ 5.61 – $ – $ 5.85 58,336 8.76 $ 5.85 2,780 $ 5.85 $ 5.93 4,000 9.78 $ 5.93 4,000 $ 5.93 $ 6.00 29,997 7.97 $ 6.00 10,000 $ 6.00 $ 6.26 90,000 9.75 $ 6.26 90,000 $ 6.26 $ 6.27 80,653 8.86 $ 6.27 26,884 $ 6.27 $ 6.78 46,664 8.64 $ 6.78 35,554 $ 6.78 1.44 6.78 1,058,630 6.79 $ 4.31 908,198 $ 4.02

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	9 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Schedule of disaggregation of revenues	Schedule of disaggregation of revenues Three Months Nine Months 2023 2022 2023 2022 Engineering Design Services $ 1,400,780 $ 1,532,414 $ 4,745,358 $ 3,659,667 Optical Components 2,609,983 1,927,963 7,842,804 4,873,294 Medical Device Products and Assemblies 1,037,302 1,190,975 2,832,165 2,351,776 Technology Rights – – 600,000 – Total Revenues $ 5,048,065 $ 4,651,352 $ 16,020,327 $ 10,884,737
Schedule of contract liabilities	Schedule of contract liabilities Three Months Nine Months 2023 2022 2023 2022 Contract Liabilities, Beginning of Period $ 794,981 $ 1,137,470 $ 905,113 $450,084 Assumed in Business Acquisition – – – 826,679 Unearned Revenue Received from Customers 1,020,669 774,316 1,917,775 1,388,700 Revenue Recognized (427,844 ) (893,511 ) (1,435,082 ) (1,647,188) Contract Liabilities, End of Period $ 1,387,806 $ 1,018,275 $ 1,387,806 $1,018,275

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Loss per share) - USD ($)	3 Months Ended				9 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Accounting Policies [Abstract]
Net Income (Loss) - Basic and Diluted	$ (398,432)			$ (113,899)	$ (48,488)	$ (1,197,713)
Weighted Average Shares Outstanding
Weighted Average Number of Shares Outstanding, Basic	5,640,473			5,600,953	5,639,015	5,181,896
Weighted Average Number of Shares Outstanding, Diluted	5,640,473			5,600,953	5,639,015	5,181,896
Earnings Per Share, Basic	$ (0.07)	$ 0.09	$ (0.03)	$ (0.02)	$ (0.01)	$ (0.23)
Earnings Per Share, Diluted	$ (0.07)	$ 0.09	$ (0.03)	$ (0.02)	$ (0.01)	$ (0.23)

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - shares		3 Months Ended		9 Months Ended
	Nov. 01, 2022	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Oct. 31, 2022	Jun. 30, 2022
Accounting Policies [Abstract]
Stockholders' Equity, Reverse Stock Split	one-for-three
Common Stock, Shares, Outstanding	5,638,302	5,640,995		5,640,995		16,915,089	5,638,302
Outstanding stock options and warrants that were excluded from the computation as their effect was antidilutive		1,058,630	939,166	1,058,630	939,166

REVISION OF FINANCIAL INFORMATI

REVISION OF FINANCIAL INFORMATION (Details) - USD ($)	3 Months Ended						9 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Mar. 31, 2022	Dec. 31, 2021	Sep. 30, 2021	Mar. 31, 2023	Mar. 31, 2022
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenues	$ 5,048,065	$ 5,886,961	$ 5,085,301	$ 4,651,352			$ 16,020,327	$ 10,884,737
Cost of Revenue	3,311,967	3,287,489	3,445,860	2,923,143			10,045,316	7,397,914
Gross Profit	1,736,098	2,599,472	1,639,441	1,728,209			5,975,011	3,486,823
Operating Income (Loss)	(493,268)	571,065	(101,802)	(61,121)			(24,005)	(1,093,423)
Net Income (Loss) Attributable to Parent	$ (398,432)	$ 508,668	$ (158,724)	$ (113,899)	$ (507,013)	$ (576,801)	$ (48,488)	$ (1,197,713)
Earnings Per Share, Basic	$ (0.07)	$ 0.09	$ (0.03)	$ (0.02)			$ (0.01)	$ (0.23)
Earnings Per Share, Diluted	$ (0.07)	$ 0.09	$ (0.03)	$ (0.02)			$ (0.01)	$ (0.23)
Previously Reported [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenues		$ 5,886,961	$ 5,085,301
Cost of Revenue		3,161,737	3,360,647
Gross Profit		2,725,224	1,724,654
Operating Income (Loss)		696,817	(16,589)
Net Income (Loss) Attributable to Parent		$ 634,420	$ (73,511)
Earnings Per Share, Basic		$ 0.11	$ (0.01)
Earnings Per Share, Diluted		$ 0.11	$ (0.01)
Revision of Prior Period, Adjustment [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenues		$ 0	$ 0
Cost of Revenue		125,752	85,213
Gross Profit		(125,752)	(85,213)
Operating Income (Loss)		(125,752)	(85,213)
Net Income (Loss) Attributable to Parent		$ (125,752)	$ (85,213)
Earnings Per Share, Basic		$ (0.02)	$ (0.02)
Earnings Per Share, Diluted		$ (0.02)	$ (0.02)

BUSINESS ACQUISITION (Details -

BUSINESS ACQUISITION (Details - Pro Forma results) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Business Combination and Asset Acquisition [Abstract]
Revenues	$ 5,048,065	$ 4,651,352	$ 16,020,327	$ 12,329,074
Net loss	$ (398,432)	$ (113,899)	$ (48,488)	$ (1,140,418)
Net income (loss) per share Basic	$ (0.07)	$ (0.02)	$ (0.01)	$ (0.20)
Net income (loss) per share Fully diluted	$ (0.07)	$ (0.02)	$ (0.01)	$ (0.20)

BUSINESS ACQUISITION (Details N

BUSINESS ACQUISITION (Details Narrative) - USD ($)		9 Months Ended
	Oct. 04, 2021	Mar. 31, 2023	Oct. 02, 2022	Jun. 30, 2022
Business Acquisition [Line Items]
Contingent liability		$ 750,000	$ 600,000	$ 750,000
Adjusted contingent liability		600,000
Other income		$ 150,000
Lighthouse Imaging [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred, Other	$ 1,500,000

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	Mar. 31, 2023	Jun. 30, 2022
Inventory Disclosure [Abstract]
Raw Materials	$ 1,402,292	$ 1,414,996
Work-In-Progress	393,078	518,251
Finished Goods	1,164,362	1,146,691
Total Inventories	$ 2,959,732	$ 3,079,938

BANK FINANCING ACTIVITIES (Deta

BANK FINANCING ACTIVITIES (Details-Long term debt) - USD ($)	9 Months Ended
	Mar. 31, 2023	Jun. 30, 2022	Oct. 04, 2021
Debt Instrument [Line Items]
Term Loan Note payable	$ 2,073,808
Less current maturities	(371,429)
Accumulated amortization of debt issuance costs	2,789
Debt issuance costs, net of accumulated amortization	(20,737)
Long-term Debt, net of current portion of debt issuance costs	$ 1,681,642	$ 1,961,141
Main Street Bank [Member]
Debt Instrument [Line Items]
Debt Instrument, Frequency of Periodic Payment	monthly
Debt instrument periodic payment	$ 30,952
Interest rate	7%
Term loan matures	Oct. 15, 2028
Term Loan Note payable			$ 2,600,000

BANK FINANCING ACTIVITIES (De_2

BANK FINANCING ACTIVITIES (Details-PRINCIPAL PAYMENT)	Mar. 31, 2023 USD ($)
Debt Disclosure [Abstract]
2023	$ 92,856
2024	371,429
2025	371,429
2026	371,429
2027	371,429
Thereafter	495,236
Total long term debt	$ 2,073,808

BANK FINANCING ACTIVITIES (De_3

BANK FINANCING ACTIVITIES (Details Narrative) - USD ($)	Mar. 31, 2023	Oct. 04, 2021
Debt Instrument [Line Items]
Term Loan	$ 2,073,808
Line of credit interest rate	9.50%
Main Street Bank [Member]
Debt Instrument [Line Items]
Revolving Line of Credit	$ 500,000	$ 250,000
Main Street Bank [Member]
Debt Instrument [Line Items]
Term Loan		$ 2,600,000

LEASE OBLIGATION (Details)

LEASE OBLIGATION (Details) - USD ($)	Mar. 31, 2023	Jun. 30, 2022
Total minimum payments	$ 101,928
Capital lease obligation, current	42,397	$ 40,705
Capital lease obligation, noncurrent	79,701	$ 111,691
Operating Lease [Member]
2022	45,389
2023	182,652
2024	183,775
2025	11,477
Total minimum payments	423,293
Capital Lease Obligations [Member]
2022	12,155
2023	48,619
2024	43,917
2025	28,028
Total minimum payments	132,719
Less: amount representing interest	10,621
Present value of minimum lease payments	122,098
Capital lease obligation, current	42,397
Capital lease obligation, noncurrent	$ 79,701

LEASE OBLIGATIONS (Details Narr

LEASE OBLIGATIONS (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2022	Mar. 31, 2021	Jan. 31, 2020
Net book value of fixed assets under capital lease obligations	$ 114,695		$ 114,695
Lease payments	101,928		101,928
Operating Lease, Right-of-Use Asset	399,007		399,007		$ 517,725
Operating Lease, Liability, Current	166,316		166,316
Operating Lease, Liability, Noncurrent	232,691		232,691		$ 367,160
El Paso Texas [Member]
Operating lease expense	15,973	$ 15,705
Windham Maine [Member]
Lease payments	321,365		321,365
Windham Maine Lease [Member]
Operating lease expense	$ 36,495
Gardner Ma [Member]
Operating lease expense			$ 150,862	$ 152,078
Manufacturing Equipment [Member]
Capital lease obligation						$ 161,977
Manufacturing Equipment 2 [Member]
Capital lease obligation							$ 47,750

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details - Stock based compensation) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Stock based compensation expense	$ 450,014	$ 231,115	$ 769,790	$ 721,637
Cost of Sales [Member]
Stock based compensation expense	9,556	34,712	25,410	91,542
Research and Development Expense [Member]
Stock based compensation expense	41,140	70,237	122,198	164,036
Selling, General and Administrative Expenses [Member]
Stock based compensation expense	$ 399,318	$ 126,166	$ 622,182	$ 466,059

STOCK-BASED COMPENSATION (Det_2

STOCK-BASED COMPENSATION (Details - Option activity) - Equity Option [Member]	9 Months Ended
	Mar. 31, 2023 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of stock options outstanding - at beginning | shares	904,626
Weighted average exercise price options outstanding- at beginning | $ / shares	$ 4
Weighted Average Contractual Life	7 years 29 days
Number of options exercised | shares	(3,000)
Weighted average exercise price - exercised | $ / shares	$ 2.55
Number of options granted | shares	179,003
Weighted average exercise price - grants | $ / shares	$ 6.03
Number of options cancelled | shares	(21,999)
Weighted average exercise price - cancelled | $ / shares	$ 5.84
Number of stock options outstanding - at ending | shares	1,058,630
Weighted average exercise price options outstanding- at ending | $ / shares	$ 4.31
Weighted average contractual life	6 years 9 months 14 days

STOCK-BASED COMPENSATION (Det_3

STOCK-BASED COMPENSATION (Details - Options by exercise price)	6 Months Ended
	Dec. 31, 2022 $ / shares shares
Option 1 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices	$ 1.44
Number of shares outstanding | shares	20,000
Weighted average contractual life	3 years
Weighted average exercise price	$ 1.44
Exercisable number of shares | shares	20,000
Exercisable weighted average exercise price	$ 1.44
Option 2 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices	$ 1.50
Number of shares outstanding | shares	26,666
Weighted average contractual life	3 years 2 months 19 days
Weighted average exercise price	$ 1.50
Exercisable number of shares | shares	26,666
Exercisable weighted average exercise price	$ 1.50
Option 3 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices	$ 1.65
Number of shares outstanding | shares	5,000
Weighted average contractual life	5 years 3 days
Weighted average exercise price	$ 1.65
Exercisable number of shares | shares	5,000
Exercisable weighted average exercise price	$ 1.65
Option 4 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices	$ 2.10
Number of shares outstanding | shares	33,333
Weighted average contractual life	5 years 4 months 6 days
Weighted average exercise price	$ 2.10
Exercisable number of shares | shares	33,333
Exercisable weighted average exercise price	$ 2.10
Option 5 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices	$ 2.19
Number of shares outstanding | shares	208,996
Weighted average contractual life	3 years 11 months 1 day
Weighted average exercise price	$ 2.19
Exercisable number of shares | shares	208,996
Exercisable weighted average exercise price	$ 2.19
Option 6 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices	$ 2.70
Number of shares outstanding | shares	12,000
Weighted average contractual life	1 year 2 months 8 days
Weighted average exercise price	$ 2.70
Exercisable number of shares | shares	12,000
Exercisable weighted average exercise price	$ 2.70
Option 7 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices	$ 3.75
Number of shares outstanding | shares	15,000
Weighted average contractual life	6 years 11 months 19 days
Weighted average exercise price	$ 3.75
Exercisable number of shares | shares	15,000
Exercisable weighted average exercise price	$ 3.75
Option 8 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices	$ 3.90
Number of shares outstanding | shares	146,325
Weighted average contractual life	6 years 2 months 12 days
Weighted average exercise price	$ 3.90
Exercisable number of shares | shares	146,325
Exercisable weighted average exercise price	$ 3.90
Option 9 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices	$ 4.20
Number of shares outstanding | shares	23,332
Weighted average contractual life	7 years 7 months 20 days
Weighted average exercise price	$ 4.20
Exercisable number of shares | shares	23,332
Exercisable weighted average exercise price	$ 4.20
Option 10 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices	$ 4.26
Number of shares outstanding | shares	33,333
Weighted average contractual life	6 years 5 months 12 days
Weighted average exercise price	$ 4.26
Exercisable number of shares | shares	33,333
Exercisable weighted average exercise price	$ 4.26
Option 11 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices	$ 4.35
Number of shares outstanding | shares	1,666
Weighted average contractual life	7 years 11 months 8 days
Weighted average exercise price	$ 4.35
Exercisable number of shares | shares	1,666
Exercisable weighted average exercise price	$ 4.35
Option 12 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices	$ 4.50
Number of shares outstanding | shares	23,332
Weighted average contractual life	6 years 8 months 8 days
Weighted average exercise price	$ 4.50
Exercisable number of shares | shares	23,332
Exercisable weighted average exercise price	$ 4.50
Option 13 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices	$ 5.04
Number of shares outstanding | shares	179,997
Weighted average contractual life	8 years 2 months 4 days
Weighted average exercise price	$ 5.04
Exercisable number of shares | shares	179,997
Exercisable weighted average exercise price	$ 5.04
Option 14 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices	$ 5.43
Number of shares outstanding | shares	10,000
Weighted average contractual life	8 years 6 months 3 days
Weighted average exercise price	$ 5.43
Exercisable number of shares | shares	10,000
Exercisable weighted average exercise price	$ 5.43
Option 15 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices	$ 5.61
Number of shares outstanding | shares	10,000
Weighted average contractual life	9 years 1 month 13 days
Weighted average exercise price	$ 5.61
Exercisable number of shares | shares	0
Exercisable weighted average exercise price	$ 0
Option 16 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices	$ 5.85
Number of shares outstanding | shares	58,336
Weighted average contractual life	8 years 9 months 3 days
Weighted average exercise price	$ 5.85
Exercisable number of shares | shares	2,780
Exercisable weighted average exercise price	$ 5.85
Option 17 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices	$ 5.93
Number of shares outstanding | shares	4,000
Weighted average contractual life	9 years 9 months 10 days
Weighted average exercise price	$ 5.93
Exercisable number of shares | shares	4,000
Exercisable weighted average exercise price	$ 5.93
Option 18 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices	$ 6
Number of shares outstanding | shares	29,997
Weighted average contractual life	7 years 11 months 19 days
Weighted average exercise price	$ 6
Exercisable number of shares | shares	10,000
Exercisable weighted average exercise price	$ 6
Option 19 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices	$ 6.26
Number of shares outstanding | shares	90,000
Weighted average contractual life	9 years 9 months
Weighted average exercise price	$ 6.26
Exercisable number of shares | shares	90,000
Exercisable weighted average exercise price	$ 6.26
Option 20 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices	$ 6.27
Number of shares outstanding | shares	80,653
Weighted average contractual life	8 years 10 months 9 days
Weighted average exercise price	$ 6.27
Exercisable number of shares | shares	26,884
Exercisable weighted average exercise price	$ 6.27
Option 21 [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices	$ 6.78
Number of shares outstanding | shares	46,664
Weighted average contractual life	8 years 7 months 20 days
Weighted average exercise price	$ 6.78
Exercisable number of shares | shares	35,554
Exercisable weighted average exercise price	$ 6.78
Options [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Number of shares outstanding | shares	1,058,630
Weighted average contractual life	6 years 9 months 14 days
Weighted average exercise price	$ 4.31
Exercisable number of shares | shares	908,198
Exercisable weighted average exercise price	$ 4.02
Options [Member] | Minimum [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices	1.44
Options [Member] | Maximum [Member]
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items]
Range of exercise prices	$ 6.78

STOCK-BASED COMPENSATION (Det_4

STOCK-BASED COMPENSATION (Details Narrative) - Equity Option [Member]	Mar. 31, 2023 USD ($)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Aggregate intrinsic value of "in the money" outstanding	$ 2,623,768
Aggregate intrinsic value of "in the money" exercisable	$ 2,515,877

REVENUE RECOGNITION (Details -

REVENUE RECOGNITION (Details - Revenues) - USD ($)	3 Months Ended				9 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Sep. 30, 2022	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Revenues	$ 5,048,065	$ 5,886,961	$ 5,085,301	$ 4,651,352	$ 16,020,327	$ 10,884,737
Engineering Design Services [Member]
Disaggregation of Revenue [Line Items]
Revenues	1,400,780			1,532,414	4,745,358	3,659,667
Optical Components [Member]
Disaggregation of Revenue [Line Items]
Revenues	2,609,983			1,927,963	7,842,804	4,873,294
Medical Device [Member]
Disaggregation of Revenue [Line Items]
Revenues	1,037,302			1,190,975	2,832,165	2,351,776
Technology Rights [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 0			$ 0	$ 600,000	$ 0

REVENUE RECOGNITION (Details _2

REVENUE RECOGNITION (Details - Contract liabilities) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2023	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
Contract Liabilities, Beginning of Period	$ 794,981	$ 1,137,470	$ 905,113	$ 450,084
Assumed in business acquisition	0	0	0	826,679
Unearned revenue received from customers	1,020,669	774,316	1,917,775	1,388,700
Revenue recognized	(427,844)	(893,511)	(1,435,082)	(1,647,188)
Contract Liabilities, End of Period	$ 1,387,806	$ 1,018,275	$ 1,387,806	$ 1,018,275