Precision Optics (POCI) 10-Q 14 Nov 24 2025 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Sep. 30, 2024	Nov. 12, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2024
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2025
Current Fiscal Year End Date	--06-30
Entity File Number	001-10647
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	01440-3338
City Area Code	978
Local Phone Number	630-1800
Trading Symbol	POCI
Security Exchange Name	NASDAQ
Title of 12(g) Security	Common Stock, $0.01 par value
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		6,350,170

CONSOLIDATED BALANCE SHEETS (UN

CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)	Sep. 30, 2024	Jun. 30, 2024
Current Assets:
Cash and cash equivalents	$ 635,572	$ 405,278
Accounts receivable, net of allowance for doubtful accounts of $103,224 at September 30, 2024 and $118,872 at June 30, 2024	3,123,595	3,545,491
Inventories	3,460,621	2,868,100
Prepaid expenses	288,475	299,364
Total current assets	7,508,263	7,118,233
Fixed Assets:
Machinery and equipment	3,346,694	3,341,194
Leasehold improvements	819,954	810,914
Furniture and fixtures	426,234	416,425
Total fixed assets	4,592,882	4,568,533
Less—accumulated depreciation and amortization	4,123,250	4,074,960
Net fixed assets	469,632	493,573
Operating lease right-to-use asset	146,247	189,999
Patents, net	290,309	286,559
Goodwill	8,824,210	8,824,210
Total other assets	9,260,766	9,300,768
TOTAL ASSETS	17,238,661	16,912,574
Current Liabilities:
Revolving line of credit	500,000	1,000,000
Current portion of capital lease obligation	38,886	41,113
Current maturities of long-term debt	285,901	276,928
Accounts payable	2,143,351	1,397,313
Contract liabilities	1,106,546	1,172,350
Accrued compensation and other	1,115,135	840,662
Operating lease liability	146,247	178,450
Total current liabilities	5,336,066	4,906,816
Capital lease obligation, net of current portion	18,384	27,369
Long-term debt, net of current maturities and debt issuance costs	1,746,764	1,899,052
Operating lease liability, net of current portion	0	11,549
Total liabilities	7,101,214	6,844,786
Stockholders’ Equity:
Common stock, $0.01 par value: 50,000,000 shares authorized; issued and outstanding – 6,350,170 shares at September 30, 2024 and 6,073,939 at June 30, 2024	63,502	60,739
Additional paid-in capital	62,575,576	61,197,433
Accumulated deficit	(52,501,631)	(51,190,384)
Total stockholders’ equity	10,137,447	10,067,788
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 17,238,661	$ 16,912,574

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($)	Sep. 30, 2024	Jun. 30, 2024
Statement of Financial Position [Abstract]
Accounts receivable, net of allowance for doubtful losses	$ 103,224	$ 118,872
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	6,350,170	6,073,939
Common stock, shares outstanding	6,350,170	6,073,939

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
Revenues	$ 4,197,053	$ 4,321,255
Cost of Goods Sold	3,079,723	2,857,644
Gross Profit	1,117,330	1,463,611
Research and Development Expenses	400,659	212,758
Selling, General and Administrative Expenses	1,963,612	1,656,146
Total Operating Expenses	2,364,271	1,868,904
Operating Loss	(1,246,941)	(405,293)
Interest Expense	(64,306)	(59,122)
Net Loss	$ (1,311,247)	$ (464,415)
Loss Per Share:
Loss per share, Basic	$ (0.21)	$ (0.08)
Loss per share, Fully diluted	$ (0.21)	$ (0.08)
Weighted Average Common Shares Outstanding:
Weighted average common shares outstanding, Basic	6,216,630	6,066,518
Weighted average common shares outstanding, Fully diluted	6,216,630	6,066,518

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Jun. 30, 2023	$ 60,665	$ 60,224,934	$ (48,239,007)	$ 12,046,592
Beginning balance, shares at Jun. 30, 2023	6,066,518
Stock-based compensation		108,746		108,746
Net loss			(464,415)	(464,415)
Ending balance, value at Sep. 30, 2023	$ 60,665	60,333,680	(48,703,422)	11,690,923
Ending balance, shares at Sep. 30, 2023	6,066,518
Beginning balance, value at Jun. 30, 2024	$ 60,739	61,197,433	(51,190,384)	10,067,788
Beginning balance, shares at Jun. 30, 2024	6,073,939
Issuance of common stock in registered direct offering	$ 2,659	1,201,883		1,204,542
Issuance of common stock in registered direct offering, shares	265,868
Proceeds from exercise of stock option	$ 104	26,896		27,000
Proceeds from exercise of stock option, shares	10,363
Stock-based compensation		149,364		149,364
Net loss			(1,311,247)	(1,311,247)
Ending balance, value at Sep. 30, 2024	$ 63,502	$ 62,575,576	$ (52,501,631)	$ 10,137,447
Ending balance, shares at Sep. 30, 2024	6,350,170

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash Flows from Operating Activities:
Net Loss	$ (1,311,247)	$ (464,415)
Adjustments to reconcile net loss to net cash used in by operating activities -
Depreciation and amortization	48,290	51,564
Stock-based compensation expense	149,364	108,746
Non-cash interest expense	4,376	4,376
Changes in operating assets and liabilities -
Accounts receivable, net	421,896	(625,719)
Inventories, net	(592,521)	(194,995)
Prepaid expenses	10,889	(112,120)
Accounts payable	746,038	(698,603)
Contract liabilities	(65,804)	250,293
Accrued compensation and other	270,097	307,884
Net cash used in operating activities	(318,622)	(1,372,989)
Cash Flows from Investing Activities:
Purchases of fixed assets	(24,349)	(30,770)
Additional patent costs	(3,750)	(12,747)
Net cash used in investing activities	(28,099)	(43,517)
Cash Flows from Financing Activities:
Payments of capital lease obligations	(11,212)	(10,562)
Payments of long-term debt	(128,315)	(128,315)
Payment of debt modification costs	(15,000)	0
Payment on revolving line of credit	(500,000)	0
Proceeds from registered direct sale of common stock, net	1,204,542	0
Gross proceeds from the exercise of stock options	27,000	0
Net cash provided by (used in) financing activities	577,015	(138,876)
Net increase(decrease) in cash and cash equivalents	230,294	(1,555,383)
Cash and cash equivalents, beginning of period	405,278	2,925,852
Cash and cash equivalents, end of period	$ 635,572	$ 1,370,469

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($)	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure [Table]
Net Income (Loss)	$ (1,311,247)	$ (464,415)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2024
Insider Trading Arrangements [Line Items]
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Sep. 30, 2024
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 three months of the Company’s fiscal year 2025. 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, 2024, together with the Report of Independent Registered Public Accounting Firm filed under cover of the Company’s 2024 Annual Report on Form 10-K, filed with the Securities and Exchange Commission on September 30, 2024. 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 months ended September 30, 2024 and 2023, potentially dilutive securities outstanding have been excluded from the computations of weighted-average shares outstanding because such securities have an antidilutive impact due to the net loss reported during those periods. The number of shares issuable upon the exercise of outstanding stock options that were excluded from the computation of fully dilutive weighted average shares outstanding was approximately 1,329,236 1,123,140 The following is the calculation of income (loss) per share for the three months ended September 30, 2024 and 2023: Schedule of income loss per share Three Months 2024 2023 Net Income (Loss) Basic and Fully Diluted $ (1,311,247 ) $ (464,415 ) Weighted Average Shares Outstanding Basic & Fully Diluted 6,216,630 6,066,518 Loss Per Share – Basic & Fully Diluted $ (0.21 ) (0.08 ) 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 the 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

INVENTORIES

INVENTORIES	3 Months Ended
	Sep. 30, 2024
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: Schedule of inventories September 30, June 30, Raw Materials $ 1,965,096 $ 1,570,135 Work-In-Progress 153,223 157,406 Finished Goods 1,342,302 1,140,559 Total Inventories $ 3,460,621 $ 2,868,100

BANK FINANCING ACTIVITIES

BANK FINANCING ACTIVITIES	3 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
BANK FINANCING ACTIVITIES	3. 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 Term Loan and a $250,000 Revolving Line of Credit Loan Facility (the “Revolver”), which was increased to $500,000 effective May 17, 2022, and $1,250,000 effective June 2, 2023. 1.5 500,000 750,000 The Company’s Loan Agreement with the Lender contains a minimum annual debt service coverage ratio covenant of 1.2x, for the period ending June 30, 2024. The Company did not meet this annual debt service coverage ratio as of such fiscal year end date. The Company’s Lender has agreed to waive compliance with such debt service ratio covenant for the period ending June 30, 2024. In addition to such waiver, the Lender and the Company have entered into an amendment dated September 30, 2024 to that certain Term Loan dated October 4, 2021, as amended and that certain Promissory Note dated June 2, 2023 (collectively, the “Notes”) which amendments provide for a six month period of interest only payments from October 15, 2024 through March 15, 2025 for the Notes. The Company will begin to pay principal and interest under the Notes beginning with the payments due on April 15, 2025, with a new amortization schedule for the remaining term for such Notes through their maturity date. There were no other changes to or modifications to the Loan Agreement or the Notes. Long-Term Debt Long-term debt consists of the following at September 30, 2024: Schedule of long-term debt Amount Term Loan Note payable to Main Street Bank with monthly 35,173 7.0 October 15, 2028 $ 1,516,667 Permanent Working Capital Loan payable to Main Street Bank with monthly 14,375 8.625 June 15, 2028 562,500 Less current maturities (285,901 ) Less debt issuance and modification costs, net of accumulated amortization of $ 18,736 (46,502 ) Long-term debt, net of current maturities and debt issuance costs $ 1,746,764 At September 30, 2024 principal payments due on the Term Loan Note payable are as follows: Schedule of principal payments due on term loan note payable Fiscal Year Ending June 30: 2025 $ 148,644 2026 594,578 2027 594,578 2028 594,578 2029 146,789 Total long-term debt $ 2,079,167

LEASE OBLIGATIONS

LEASE OBLIGATIONS	3 Months Ended
	Sep. 30, 2024
Lease Obligations
LEASE OBLIGATIONS	4. LEASE OBLIGATIONS In March 2021 the Company entered into a five-year capital lease in the amount of $ 161,977 47,750 51,776 On July 1, 2019, the Company entered into a three-year operating lease for its facility in El Paso, Texas, and in February 2022 extended the lease through June 2025. Remaining minimum lease payments at September 30, 2024 total $ 34,060 16,340 15,973 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 on September 30, 2024 total $ 112,187 34,432 146,247 146,247 At September 30, 2024 future minimum lease payments under the capital lease and operating lease obligations are as follows: Schedule of future minimum lease payments under capital lease and operating lease obligations Fiscal Year Ending June 30: Capital Leases Operating Lease 2025 $ 31,764 $ 137,950 2026 28,004 11,478 Total Minimum Payments 59,768 149,428 Less: amount representing interest 2,498 3,181 Present value of minimum lease payments 57,270 146,247 Less: current portion 38,886 146,247 Lease Obligation, net of current portion $ 18,384 $ – The Company’s four facilities in Gardner, Massachusetts which are used for offices, production and storage spaces are leased primarily on a tenant-at-will basis. Rent expense on these operating leases was $ 51,797 48,799

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	3 Months Ended
	Sep. 30, 2024
Equity [Abstract]
STOCK-BASED COMPENSATION	5. STOCK-BASED COMPENSATION Stock Options The following table summarizes stock-based compensation expense for the three months ended September 30, 2024 and 2023. The share amounts and prices shown below reflect adjustment for a 1-for-3 reverse stock split Schedule of stock-based compensation expense Three Months 2024 2023 Cost of Goods Sold $ 39,226 $ 22,625 Selling, General and Administrative 110,138 86,121 Stock Based Compensation Expense $ 149,364 $ 108,746 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, 2024: Schedule of stock option activity Options Outstanding Number of Weighted Average Weighted Average Outstanding at June 30, 2024 1,357,735 $ 4.72 6.60 Exercised (10,999 ) 2.81 – Cancelled, forfeited, or expired (17,500 ) 4.62 Outstanding at September 30, 2024 1,329,236 $ 4.72 6.35 The aggregate intrinsic value of the Company’s in-the-money outstanding and exercisable options as of September 30, 2024 were $ 1,533,439 1,511,239

REVENUE RECOGNITION

REVENUE RECOGNITION	3 Months Ended
	Sep. 30, 2024
Revenue from Contract with Customer [Abstract]
REVENUE RECOGNITION	6. REVENUE RECOGNITION The Company determines revenue recognition for arrangements that we determine are within the scope of Accounting Standards Codification Topic 606, “Revenue from Contracts with Customers,” or ASC 606, by performing the following five steps: (i) identify the contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when, or as, the Company satisfies the performance obligations. At contract inception, once the contract is determined to be within the scope of ASC 606, the Company assesses the goods or services promised within the contract and determine those that are performance obligations and assess whether each promised good or service is distinct based on the contract. The Company disaggregates revenues by product and service types as it believes best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by economic factors. Revenues are comprised of the following for the three months ended September 30, 2024 and 2023: Schedule of disaggregation of revenues Three Months 2024 2023 Engineering Design Services $ 1,851,371 $ 1,900,999 Optical Components 2,080,188 1,903,311 Medical Device Products and Assemblies 265,494 516,945 Total Revenues $ 4,197,053 $ 4,321,255 Other selling costs to obtain and fulfill contracts are expensed as incurred due to the short-term nature of a majority of 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. Revenue recognition policies for each of the four product and service types appear below. Engineering Design Services The Company enters into contractual agreements with its customers, including design services agreements, statements of work and receive purchase orders for development projects. These agreements provide costs on an estimated basis for the services the Company has agreed to provide. Engineering Design Services are rendered on a time and materials basis. The Company recognizes revenue as customers are invoiced for the actual engineering services provided in the period. Revenue is also recognized on materials purchased for development projects at the time of receipt. Engineering Design Services are provided on a best-efforts basis; no warranty is provided as there is no guarantee that the work will result in the attainment of the customer’s project objectives. The Company may obtain customer deposits in advance of rendering engineering design services. Customer deposits are treated as contractual liabilities until the terms of customer agreements are satisfied and are not a component of revenue. Optical Components, Finished Products and Assemblies The Company provides fixed price quotations to its customers and requires purchase orders for all purchased optical components, finished devices and assemblies. Revenue is recognized at the time title passes to the Company’s customers based on its review of the customer contract, generally at the time of shipment from its facilities. Occasionally the Company may enter into “bill and hold” contractual arrangements where title is held by its customers while goods are stored at our facilities for their convenience. Technology Rights and Royalties The Company may recognize revenue for the sale of technology rights and through the receipt of royalties obtained under a license of our intellectual property. These revenues are recognized in the period in which, in our judgment, they are earned and no longer contingent under the terms and conditions of the relevant customer contract. 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, 2024, 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’s inception date. Contract liabilities, which are recorded in the Company’s Consolidated Balance Sheets, and unearned revenue are comprised of the following: Schedule of contract liabilities Three Months 2024 2023 Contract liabilities, beginning of period $ 1,172,350 $ 1,174,690 Unearned revenue received from customers 471,617 433,119 Revenue recognized (537,421 ) (182,826 ) Contract liabilities, end of period $ 1,106,546 $ 1,424,983

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Sep. 30, 2024
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 first three months of the Company’s fiscal year 2025. 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, 2024, together with the Report of Independent Registered Public Accounting Firm filed under cover of the Company’s 2024 Annual Report on Form 10-K, filed with the Securities and Exchange Commission on September 30, 2024.
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 months ended September 30, 2024 and 2023, potentially dilutive securities outstanding have been excluded from the computations of weighted-average shares outstanding because such securities have an antidilutive impact due to the net loss reported during those periods. The number of shares issuable upon the exercise of outstanding stock options that were excluded from the computation of fully dilutive weighted average shares outstanding was approximately 1,329,236 1,123,140 The following is the calculation of income (loss) per share for the three months ended September 30, 2024 and 2023: Schedule of income loss per share Three Months 2024 2023 Net Income (Loss) Basic and Fully Diluted $ (1,311,247 ) $ (464,415 ) Weighted Average Shares Outstanding Basic & Fully Diluted 6,216,630 6,066,518 Loss Per Share – Basic & Fully Diluted $ (0.21 ) (0.08 )
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 the 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

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
Schedule of income loss per share	Schedule of income loss per share Three Months 2024 2023 Net Income (Loss) Basic and Fully Diluted $ (1,311,247 ) $ (464,415 ) Weighted Average Shares Outstanding Basic & Fully Diluted 6,216,630 6,066,518 Loss Per Share – Basic & Fully Diluted $ (0.21 ) (0.08 )

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Sep. 30, 2024
Inventory Disclosure [Abstract]
Schedule of inventories	Schedule of inventories September 30, June 30, Raw Materials $ 1,965,096 $ 1,570,135 Work-In-Progress 153,223 157,406 Finished Goods 1,342,302 1,140,559 Total Inventories $ 3,460,621 $ 2,868,100

BANK FINANCING ACTIVITIES (Tabl

BANK FINANCING ACTIVITIES (Tables)	3 Months Ended
	Sep. 30, 2024
Debt Disclosure [Abstract]
Schedule of long-term debt	Schedule of long-term debt Amount Term Loan Note payable to Main Street Bank with monthly 35,173 7.0 October 15, 2028 $ 1,516,667 Permanent Working Capital Loan payable to Main Street Bank with monthly 14,375 8.625 June 15, 2028 562,500 Less current maturities (285,901 ) Less debt issuance and modification costs, net of accumulated amortization of $ 18,736 (46,502 ) Long-term debt, net of current maturities and debt issuance costs $ 1,746,764
Schedule of principal payments due on term loan note payable	Schedule of principal payments due on term loan note payable Fiscal Year Ending June 30: 2025 $ 148,644 2026 594,578 2027 594,578 2028 594,578 2029 146,789 Total long-term debt $ 2,079,167

LEASE OBLIGATIONS (Tables)

LEASE OBLIGATIONS (Tables)	3 Months Ended
	Sep. 30, 2024
Lease Obligations
Schedule of future minimum lease payments under capital lease and operating lease obligations	Schedule of future minimum lease payments under capital lease and operating lease obligations Fiscal Year Ending June 30: Capital Leases Operating Lease 2025 $ 31,764 $ 137,950 2026 28,004 11,478 Total Minimum Payments 59,768 149,428 Less: amount representing interest 2,498 3,181 Present value of minimum lease payments 57,270 146,247 Less: current portion 38,886 146,247 Lease Obligation, net of current portion $ 18,384 $ –

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	3 Months Ended
	Sep. 30, 2024
Equity [Abstract]
Schedule of stock-based compensation expense	Schedule of stock-based compensation expense Three Months 2024 2023 Cost of Goods Sold $ 39,226 $ 22,625 Selling, General and Administrative 110,138 86,121 Stock Based Compensation Expense $ 149,364 $ 108,746
Schedule of stock option activity	Schedule of stock option activity Options Outstanding Number of Weighted Average Weighted Average Outstanding at June 30, 2024 1,357,735 $ 4.72 6.60 Exercised (10,999 ) 2.81 – Cancelled, forfeited, or expired (17,500 ) 4.62 Outstanding at September 30, 2024 1,329,236 $ 4.72 6.35

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	3 Months Ended
	Sep. 30, 2024
Revenue from Contract with Customer [Abstract]
Schedule of disaggregation of revenues	Schedule of disaggregation of revenues Three Months 2024 2023 Engineering Design Services $ 1,851,371 $ 1,900,999 Optical Components 2,080,188 1,903,311 Medical Device Products and Assemblies 265,494 516,945 Total Revenues $ 4,197,053 $ 4,321,255
Schedule of contract liabilities	Schedule of contract liabilities Three Months 2024 2023 Contract liabilities, beginning of period $ 1,172,350 $ 1,174,690 Unearned revenue received from customers 471,617 433,119 Revenue recognized (537,421 ) (182,826 ) Contract liabilities, end of period $ 1,106,546 $ 1,424,983

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Income loss per share) - USD ($)	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Accounting Policies [Abstract]
Net Income (Loss) Basic	$ (1,311,247)	$ (464,415)
Net Income (Loss) Fully Diluted	$ (1,311,247)	$ (464,415)
Weighted Average Shares Outstanding, Basic	6,216,630	6,066,518
Weighted Average Shares Outstanding, Fully Diluted	6,216,630	6,066,518
Loss Per Share - Basic	$ (0.21)	$ (0.08)
Loss Per Share - Fully Diluted	$ (0.21)	$ (0.08)

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Accounting Policies [Abstract]
Antidilutive weighted average shares outstanding	1,329,236	1,123,140
Impairments of goodwill or patents	$ 0	$ 0

INVENTORIES (Details)

INVENTORIES (Details) - USD ($)	Sep. 30, 2024	Jun. 30, 2024
Inventory Disclosure [Abstract]
Raw Materials	$ 1,965,096	$ 1,570,135
Work-In-Progress	153,223	157,406
Finished Goods	1,342,302	1,140,559
Total Inventories	$ 3,460,621	$ 2,868,100

BANK FINANCING ACTIVITIES (Deta

BANK FINANCING ACTIVITIES (Details - Long term debt) - USD ($)	Sep. 30, 2024	Jun. 30, 2024
Debt Disclosure [Abstract]
Term loan note payable	$ 1,516,667
Working capital loan payable	562,500
Less current maturities	(285,901)	$ (276,928)
Less debt issuance costs, net of accumulated amortization	(46,502)
Long-term debt, net of current portion of debt issuance costs	$ 1,746,764	$ 1,899,052

BANK FINANCING ACTIVITIES (De_2

BANK FINANCING ACTIVITIES (Details - Principal payments)	Sep. 30, 2024 USD ($)
Debt Disclosure [Abstract]
2025	$ 148,644
2026	594,578
2027	594,578
2028	594,578
2029	146,789
Total long-term debt	$ 2,079,167

BANK FINANCING ACTIVITIES (De_3

BANK FINANCING ACTIVITIES (Details Narrative) - USD ($)		3 Months Ended
	Oct. 04, 2021	Sep. 30, 2024
Debt Instrument [Line Items]
Accumulated amortization of debt issuance costs		$ 18,736
Main Street Bank [Member]
Debt Instrument [Line Items]
Term loan	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 Term Loan and a $250,000 Revolving Line of Credit Loan Facility (the “Revolver”), which was increased to $500,000 effective May 17, 2022, and $1,250,000 effective June 2, 2023.
Line of credit bear interest rate		1.50%
Debt periodic payment term		monthly
Debt instrument periodic payment		$ 35,173
Interest rate		7%
Term loan maturity		Oct. 15, 2028
Main Street Bank [Member] | Revolver [Member]
Debt Instrument [Line Items]
Revolving line of credit balance		$ 500,000
Credit line remaining borrowing capacity		$ 750,000
Main Street Bank 1 [Member]
Debt Instrument [Line Items]
Debt periodic payment term		monthly
Debt instrument periodic payment		$ 14,375
Interest rate		8.625%
Term loan maturity		Jun. 15, 2028

LEASE OBLIGATIONS (Details - Fu

LEASE OBLIGATIONS (Details - Future minimum lease payments) - USD ($)	Sep. 30, 2024	Jun. 30, 2024
Present value of minimum lease payments, operating leases	$ 146,247	$ 178,450
Less: current portion, capital leases	38,886	41,113
Less: current portion, operating leases	146,247
Lease Obligation, net of current portion, capital leases	18,384	27,369
Lease Obligation, net of current portion, operating leases	0	$ 11,549
Operating Lease [Member]
2025	137,950
2026	11,478
Total minimum payments, operating leases	149,428
Less: amount representing interest, operating leases	3,181
Present value of minimum lease payments, operating leases	146,247
Less: current portion, operating leases	146,247
Lease Obligation, net of current portion, operating leases	0
Capital Lease Obligations [Member]
2025	31,764
2026	28,004
Total minimum payments, capital leases	59,768
Less: amount representing interest, capital leases	2,498
Present value of minimum lease payments, capital leases	57,270
Less: current portion, capital leases	38,886
Lease Obligation, net of current portion, capital leases	$ 18,384

LEASE OBLIGATIONS (Details Narr

LEASE OBLIGATIONS (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Jun. 30, 2024	Mar. 31, 2021	Jan. 31, 2020
Property, Plant and Equipment [Line Items]
Operating lease, right-of-use asset	$ 146,247		$ 189,999
Operating lease, liability current	146,247
El Paso Texas [Member]
Property, Plant and Equipment [Line Items]
Lease payments	34,060
Operating lease expense	16,340	$ 15,973
Windham Maine [Member]
Property, Plant and Equipment [Line Items]
Lease payments	112,187
Operating lease expense	34,432	34,432
Gardner Massachusetts Office [Member]
Property, Plant and Equipment [Line Items]
Operating lease expense	51,797	$ 48,799
Manufacturing Equipment [Member]
Property, Plant and Equipment [Line Items]
Capital lease obligation				$ 161,977	$ 47,750
Net book value of fixed assets under capital lease obligations	$ 51,776

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) - USD ($)	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Stock based compensation expense	$ 149,364	$ 108,746
Cost of Sales [Member]
Stock based compensation expense	39,226	22,625
Selling, General and Administrative Expenses [Member]
Stock based compensation expense	$ 110,138	$ 86,121

STOCK-BASED COMPENSATION (Det_2

STOCK-BASED COMPENSATION (Details - Option activity) - Equity Option [Member]	3 Months Ended
	Sep. 30, 2024 $ / shares shares
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of stock options outstanding - at beginning | shares	1,357,735
Weighted average exercise price options outstanding- at beginning | $ / shares	$ 4.72
Weighted average contractual life	6 years 7 months 6 days
Number of stock options exercised | shares	(10,999)
Weighted average exercise price - exercised | $ / shares	$ 2.81
Number of stock options cancelled, forfeited, or expired | shares	(17,500)
Weighted average exercise price cancelled, forfeited, or expired | $ / shares	$ 4.62
Number of stock options outstanding - at ending | shares	1,329,236
Weighted average exercise price options outstanding- at ending | $ / shares	$ 4.72
Weighted average contractual life	6 years 4 months 6 days

STOCK-BASED COMPENSATION (Det_3

STOCK-BASED COMPENSATION (Details Narrative)	3 Months Ended
	Sep. 30, 2024 USD ($)
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Reverse stock split	1-for-3 reverse stock split
Equity Option [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Aggregate intrinsic value outstanding	$ 1,533,439
Aggregate intrinsic value exercisable	$ 1,511,239

REVENUE RECOGNITION (Details -

REVENUE RECOGNITION (Details - Revenue) - USD ($)	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Revenues	$ 4,197,053	$ 4,321,255
Engineering Design Services [Member]
Disaggregation of Revenue [Line Items]
Revenues	1,851,371	1,900,999
Optical Components [Member]
Disaggregation of Revenue [Line Items]
Revenues	2,080,188	1,903,311
Medical Device Products And Assemblies [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 265,494	$ 516,945

REVENUE RECOGNITION (Details _2

REVENUE RECOGNITION (Details - Contract liabilities) - USD ($)	3 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Revenue from Contract with Customer [Abstract]
Contract liabilities, beginning of period	$ 1,172,350	$ 1,174,690
Unearned revenue received from customers	471,617	433,119
Revenue recognized	(537,421)	(182,826)
Contract liabilities, end of period	$ 1,106,546	$ 1,424,983