Allied Healthcare Products (AHPIQ) 10-Q 14 May 21 2021 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Mar. 31, 2021	May 03, 2021
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Entity Registrant Name	ALLIED HEALTHCARE PRODUCTS INC
Entity Central Index Key	0000874710
Current Fiscal Year End Date	--06-30
Entity Filer Category	Non-accelerated Filer
Trading Symbol	AHPI
Entity Common Stock, Shares Outstanding		4,013,537
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Shell Company	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock
Security Exchange Name	NASDAQ

STATEMENT OF OPERATIONS

STATEMENT OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
STATEMENT OF OPERATIONS
Net sales	$ 7,967,067	$ 8,097,215	$ 29,260,143	$ 23,382,636
Cost of sales	6,531,777	6,511,688	23,338,847	19,190,237
Gross profit	1,435,290	1,585,527	5,921,296	4,192,399
Selling, general and administrative expenses	1,816,536	1,890,296	5,703,941	6,617,016
Income (loss) from operations	(381,246)	(304,769)	217,355	(2,424,617)
Other (income) expenses:
Interest expense	32,229	25,754	83,932	51,542
Interest income	(30)	(48)	(229)	(100)
Other, net	0	9	0	32
Nonoperating income (expenses)	32,199	25,715	83,703	51,474
Income (loss) before income taxes	(413,445)	(330,484)	133,652	(2,476,091)
Provision for income taxes	0	0	0	0
Net income (loss)	$ (413,445)	$ (330,484)	$ 133,652	$ (2,476,091)
Basic income (loss) per share	$ (0.10)	$ (0.08)	$ 0.03	$ (0.62)
Diluted income (loss) per share	$ (0.10)	$ (0.08)	$ 0.03	$ (0.62)
Weighted average shares outstanding - basic	4,013,537	4,013,537	4,013,537	4,013,537
Weighted average shares outstanding - diluted	4,013,537	4,013,537	4,027,310	4,013,537

BALANCE SHEET

BALANCE SHEET - USD ($)	Mar. 31, 2021	Jun. 30, 2020
Current assets:
Cash and cash equivalents	$ 276,455	$ 2,600,083
Accounts receivable, net of allowances of $170,000	3,152,523	3,103,819
Inventories, net	9,642,959	8,928,688
Income tax receivable	23,458	12,178
Other current assets	436,669	229,805
Total current assets	13,532,064	14,874,573
Property, plant and equipment, net	3,852,773	4,139,693
Operating lease assets	14,187	17,326
Deferred income taxes	640,767	640,767
Total assets	18,039,791	19,672,359
Current liabilities:
Current portion of Payroll Protection Program loan	2,239,712	1,042,655
Current portion of operating lease liability	4,639	4,249
Revolving credit facility	1,461,180	0
Accounts payable	1,878,222	2,940,006
Customer deposits	647,739	2,832,370
Other accrued liabilities	2,642,267	2,106,131
Total current liabilities	8,873,759	8,925,411
Long-term portion of Payroll Protection Program loan	135,147	1,332,204
Long-term operating lease liability	9,548	13,077
Long-term environmental liability	0	523,000
Commitments and contingencies
Stockholders' equity:
Preferred stock	0	0
Common stock; $0.01 par value; 30,000,000 shares authorized; 5,213,902 shares issued at March 31, 2021 and June 30, 2020; 4,013,537 shares outstanding at March 31, 2021 and June 30, 2020	52,139	52,139
Additional paid-in capital	48,502,750	48,493,732
Accumulated deficit	(18,552,764)	(18,686,416)
Less treasury stock, at cost; 1,200,365 shares at March 31, 2021 and June 30, 2020, respectively	(20,980,788)	(20,980,788)
Total stockholders' equity	9,021,337	8,878,667
Total liabilities and stockholders' equity	18,039,791	19,672,359
Series A Preferred Stock
Stockholders' equity:
Preferred stock	$ 0	$ 0

BALANCE SHEET (Parenthetical)

BALANCE SHEET (Parenthetical) - USD ($)	Mar. 31, 2021	Jun. 30, 2020
Allowances for accounts receivable (in dollars)	$ 170,000	$ 170,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,500,000	1,500,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares issued	5,213,902	5,213,902
Common stock, shares outstanding	4,013,537	4,013,537
Treasury stock, at cost	1,200,365	1,200,365
Series A Preferred Stock
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	200,000	200,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

STATEMENT OF CHANGES IN STOCKHO

STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY - USD ($)	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Treasury Stock	Total
Balance at Beginning of period at Jun. 30, 2019	$ 52,139	$ 48,491,317	$ (15,672,316)	$ (20,980,788)	$ 11,890,352
Stock based compensation	0	1,886	0	0	1,886
Net income (loss)	0	0	(2,476,091)	0	(2,476,091)
Balance at End of period at Mar. 31, 2020	52,139	48,493,203	(18,148,407)	(20,980,788)	9,416,147
Balance at Beginning of period at Dec. 31, 2019	52,139	48,492,674	(17,817,923)	(20,980,788)	9,746,102
Stock based compensation	0	529	0	0	529
Net income (loss)	0	0	(330,484)	0	(330,484)
Balance at End of period at Mar. 31, 2020	52,139	48,493,203	(18,148,407)	(20,980,788)	9,416,147
Balance at Beginning of period at Jun. 30, 2020	52,139	48,493,732	(18,686,416)	(20,980,788)	8,878,667
Stock based compensation	0	9,018	0	0	9,018
Net income (loss)	0	0	133,652	0	133,652
Balance at End of period at Mar. 31, 2021	52,139	48,502,750	(18,552,764)	(20,980,788)	9,021,337
Balance at Beginning of period at Dec. 31, 2020	52,139	48,497,762	(18,139,319)	(20,980,788)	9,429,794
Stock based compensation	0	4,988	0	0	4,988
Net income (loss)	0	0	(413,445)	0	(413,445)
Balance at End of period at Mar. 31, 2021	$ 52,139	$ 48,502,750	$ (18,552,764)	$ (20,980,788)	$ 9,021,337

STATEMENT OF CASH FLOWS

STATEMENT OF CASH FLOWS - USD ($)	9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities:
Net income (loss)	$ 133,652	$ (2,476,091)
Adjustments to reconcile net income (loss) to net cash from operating activities:
Depreciation and amortization	454,083	462,274
Stock based compensation	9,018	1,886
Provision for doubtful accounts and sales returns and allowances	17,549	21,623
Changes in operating assets and liabilities:
Accounts receivable	(66,253)	(501,100)
Inventories	(714,271)	511,884
Income tax receivable	(11,280)	(6,275)
Other current assets	(206,864)	(67,094)
Accounts payable	(1,061,784)	221,731
Customer deposits	(2,184,631)	2,174,731
Other accrued liabilities	13,136	663,239
Net cash provided by (used in) operating activities	(3,617,645)	1,006,808
Cash flows from investing activities:
Capital expenditures	(167,163)	(47,163)
Net cash used in investing activities	(167,163)	(47,163)
Cash flows from financing activities:
Borrowings under revolving credit agreement	29,137,202	24,224,054
Payments under revolving credit agreement	(27,676,022)	(24,224,054)
Net cash provided by financing activities	1,461,180	0
Net increase (decrease) in cash and cash equivalents	(2,323,628)	959,645
Cash and cash equivalents at beginning of period	2,600,083	195,454
Cash and cash equivalents at end of period	$ 276,455	$ 1,155,099

Summary of Significant Accounti

Summary of Significant Accounting and Reporting Policies	9 Months Ended
	Mar. 31, 2021
Summary of Significant Accounting and Reporting Policies
Summary of Significant Accounting and Reporting Policies	1. Summary of Significant Accounting and Reporting Policies Basis of Presentation The accompanying unaudited financial statements of Allied Healthcare Products, Inc. (the “Company”) have been prepared in accordance with the instructions for Form 10‑Q and do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for a fair presentation, have been included. Operating results for any quarter are not necessarily indicative of the results for any other quarter or for the full year. These statements should be read in conjunction with the financial statements and notes to the financial statements thereto included in the Company’s Annual Report on Form 10‑K for the year ended June 30, 2020. Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and the revolving credit facility. The carrying amounts for cash and cash equivalents, accounts receivable and accounts payable approximate their fair value due to the short maturity of these instruments. The carrying amount of the revolving credit facility approximates fair value due to the debt having a variable interest rate. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which changes the way companies evaluate credit losses for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other specified instruments, entities will be required to use a new forward-looking “expected loss” model to evaluate impairment, potentially resulting in earlier recognition of allowances for losses. The new standard also requires enhanced disclosures, including the requirement to disclose the information used to track credit quality by year of origination for most financing receivables. The guidance must be applied using a cumulative-effect transition method. ASU 2016-13 is effective for fiscal years beginning after December 15, 2020, and for interim periods within those fiscal years (the fiscal year ending June 30, 2022 for the Company), with early adoption permitted. The Company is currently evaluating the impact that adopting this guidance may have on its financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this update eliminate the need for an organization to analyze whether certain exceptions apply for tax purposes. It also simplifies GAAP for certain taxes. The amendments in these updates are effective for us for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We do not expect the adoption of this standard to have a material impact on our financial statements. Risk and Uncertainties, Liquidity and Management’s Plan A novel strain of coronavirus (“COVID-19”) was first identified in Wuhan, China in December 2019. On March 11, 2020, the World Health Organization designated COVID-19 as a global pandemic. To date, COVID-19 has surfaced in nearly all regions around the world and resulted in business slowdowns or shutdowns in affected areas. Despite our efforts to manage and remedy the effects of this pandemic, the significance depends on factors beyond our control, including the duration and severity of the outbreak as well as third-party actions taken to contain the spread and mitigate public health efforts. For the Company this creates additional economic uncertainty. Risks for the Company include disruption in operations if a significant percentage of our workforce is unable to work due to illness, forced curtailment of business operations and business travel by governmental authorities, and failure of others in our supply chain and distribution channel to meet their obligations to us, or significant disruptions in their ability to do so, which may be caused by their own financial or operational difficulties. Management believes that the combination of cash on hand at March 31, 2021, additional borrowings available on the credit facility (Note 6), reductions in inventory levels and future earnings will be sufficient to meet its obligations as they become due in the ordinary course of business for at least 12 months following the date these financial statements are issued. If additional liquidity would be required, the Company would consider additional borrowings through the sale leaseback of its corporate headquarters and delaying certain expenditures until sufficient capital becomes available.

Revenues

Revenues	9 Months Ended
	Mar. 31, 2021
Revenues
Revenues	2. Revenues The Company’s revenues are derived primarily from the sales of respiratory products, medical gas equipment and emergency medical products. The products are generally sold directly to distributors, customers affiliated with buying groups, individual customers and construction contractors, throughout the world. The Company recognizes revenue from product sales upon the transfer of control, which is generally upon shipment or delivery, depending on the delivery terms set forth in the customer contract. Payment terms between Allied and its customers vary by the type of customer, country of sale, and the products offered. The term between invoicing and the payment due date is not significant. For certain customers or product orders, Allied may require advance payments. The contract liabilities are reflected as customer deposits on the Company's balance sheet. Management exercises judgment in estimating variable consideration. Provisions for early payment discounts, rebates and returns and other adjustments are provided for in the period the related sales are recorded. Historical data is readily available and reliable, and is used for estimating the amount of the reduction in gross sales. The Company provides rebates to wholesalers. Rebate amounts are based upon purchases using contractual amount for each product sold. Factors used in the rebate calculations include the identification of which products have been sold subject to a rebate and the customer or price terms that apply. Using known contractual allowances, the Company estimates the amount of the rebate that will be paid, and records the liability as a reduction of gross sales when it records the sale of the product. Settlement of the rebate generally occurs in the month following the sale. The Company regularly analyzes the historical rebate trends and makes adjustments to reserves for changes in trends and terms of rebate programs. Historically, adjustments to prior years’ rebate accruals have not been material to net income. Other allowances charged against gross sales include cash discounts and returns, which are not significant. Cash discounts are known within 15 to 30 days of sale, and therefore can be reliably estimated. Returns can be reliably estimated because the Company’s historical returns are low, and because sales return terms and other sales terms have remained relatively unchanged for several periods. Product warranties are also not significant. The Company does not allocate transaction price as the Company has only one performance obligation and its contracts do not span multiple periods. The Company operates in one segment consisting of the manufacturing, marketing and distribution of a variety of respiratory products used in the health care industry to hospitals, hospital equipment dealers, hospital construction contractors, home health care dealers and emergency medical product dealers. The Company’s product lines include respiratory care products, medical gas equipment and emergency medical products. Sales by region, and by product, are as follows: Sales by Region Three months ended Nine months ended March 31, March 31, 2021 2020 2021 2020 Domestic United States $ 5,981,994 $ 6,142,406 $ 18,882,774 $ 17,338,254 Europe 506,703 148,255 3,953,776 545,372 Canada 232,994 186,032 1,113,527 555,410 Latin America 491,897 782,650 2,287,691 2,345,441 Middle East 66,105 205,633 1,084,087 429,590 Far East 687,374 632,239 1,937,057 2,167,995 Other International — — 1,231 574 $ 7,967,067 $ 8,097,215 $ 29,260,143 $ 23,382,636 Sales by Product Three months ended Nine months ended March 31, March 31, 2021 2020 2021 2020 Respiratory care products $ 2,130,073 $ 2,289,920 $ 6,116,737 $ 6,507,371 Medical gas equipment 3,902,729 3,848,923 12,215,799 11,453,496 Emergency medical products 1,934,265 1,958,372 10,927,607 5,421,769 $ 7,967,067 $ 8,097,215 $ 29,260,143 $ 23,382,636

Inventories

Inventories	9 Months Ended
	Mar. 31, 2021
Inventories
Inventories	3. Inventories Inventories are comprised as follows: March 31, 2021 June 30, 2020 Work-in progress $ 964,487 $ 817,692 Component parts 8,795,232 8,299,972 Finished goods 1,732,374 1,660,158 Reserve for obsolete and excess inventories (1,849,134) (1,849,134) $ 9,642,959 $ 8,928,688

Earnings per share

Earnings per share	9 Months Ended
	Mar. 31, 2021
Earnings Per Share
Earnings Per Share	4. Earnings per share Basic earnings per share are based on the weighted average number of shares of all common stock outstanding during the period. Diluted earnings per share are based on the sum of the weighted average number of shares of common stock and common stock equivalents outstanding during the period. The number of basic shares outstanding for the three and nine months ended March 31, 2021 and 2020 were 4,013,537. The number of diluted shares outstanding for the three months ended March 31, 2021 and 2020 were 4,013,537. The number of diluted shares outstanding for the nine months ended March 31, 2021 and 2020 were 4,027,310 and 4,013,537, respectively.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Mar. 31, 2021
Commitments and Contingencies
Commitments and Contingencies	5. Commitments and Contingencies Legal Claims The Company is subject to various investigations, claims and legal proceedings covering a wide range of matters that arise in the ordinary course of its business activities. The Company has recognized costs and associated liabilities only for those investigations, claims and legal proceedings for which in its view it is probable that liabilities have been incurred and the related amounts are estimable. Environmental Remediation The Company is party to a Brownfield Cleanup Program Agreement with the New York Department of Environmental Conservation under its Brownfield Cleanup Program with respect to the Company’s property in Stuyvesant Falls, New York. The agreement recognizes that the soil and groundwater at the Stuyvesant Falls facility is impacted by chemical compounds exceeding regulatory standards. Pursuant to the agreement, the Company will conduct, at its expense, investigation and remediation at the site. The Company’s best estimate of the expected cost to remediate the site is $1.1 million. This amount was recorded as an expense during fiscal 2020 and is reflected in other accrued liabilities and selling, general and administrative expenses in the Company’s financial statements. As of March 31, 2021, the Company has paid approximately $98,000 in remediation expenses which have been charged to the initial reserve. Liability for future environmental expenditures Balance - July 1, 2020 $ 1,037,000 Charges to income — Remedial and investigatory spending 15,806 Balance - March 31 , 2021 $ 1,021,194 March 31, 2021 June 30, 2020 Reflected in the Balance Sheet as: Current, included in Other Liabilities $ 1,021,194 $ 514,000 Long-term environmental — 523,000 Total liability $ 1,021,194 $ 1,037,000 Employment Contract On April 20, 2021, the Company entered into an employment contract with its chief executive officer, Joseph F. Ondrus, Jr., which provides for an initial term of three years with annual renewals. The contract includes termination without cause and change of control provisions, under which the chief executive officer is entitled to continued payments of annual salary and benefits if the Company terminates his employment without cause or he voluntarily terminates his employment with “good reason.” “Good Reason” generally includes changes in the scope of his duties or location of employment but also includes (i) the Company’s written election not to renew the Employment Agreement and (ii) certain voluntary resignations by the chief executive officer following a “Change of Control” as defined in the Agreement.

Financing

Financing	9 Months Ended
	Mar. 31, 2021
Financing
Financing	6. Financing North Mill Loan The Company is party to a Loan and Security Agreement with North Mill Capital, LLC (“North Mill”), as successor in interest to Summit Financial Resources, L.P., dated effective February 27, 2017, as amended April 16, 2018, April 24, 2019 and December 18, 2020 (as amended, the “Credit Agreement”). Pursuant to the Credit Agreement, the Company obtained a secured revolving credit facility (the “Credit Facility”). The Company’s obligations under the Credit Facility are secured by all of the Company’s personal property, both tangible and intangible, pursuant to the terms and subject to the conditions set forth in the Credit Agreement. Availability of funds under the Credit Agreement is based on the Company’s accounts receivable and inventory but will not exceed $4,000,000. At March 31, 2021 availability under the agreement was $1.7 million. The Credit Facility will be available, subject to its terms, on a revolving basis until it expires on February 27, 2023, at which time all amounts outstanding under the Credit Facility will be due and payable. Advances will bear interest at a rate equal to 2.00% in excess of the prime rate as reported in the Wall Street Journal. Interest is computed based on the actual number of days elapsed over a year of 360 days. In addition to interest, the Credit facility requires that the Company pay the lender a monthly administration fee in an amount equal to forty-seven hundredths percent (0.47%) of the average outstanding daily principal amount of loan advances for each calendar month, or portion thereof. Regardless of the amount borrowed under the Credit Facility, the Company will pay a minimum amount of .25% (25 basis points) per month on the maximum availability ($10,000 per month). In the event the Company prepays or terminates the Credit Facility prior to February 27, 2022, the Company will be obligated to pay an amount equal to the minimum monthly payment multiplied by the number of months remaining between February 27, 2022 and the date of such prepayment or termination. Under the Credit Agreement, advances are generally subject to customary borrowing conditions and to North Mill’s sole discretion to fund the advances. The Credit Agreement also contains covenants with which the Company must comply during the term of the Credit Facility. Among other things, such covenants require the Company to maintain insurance on the collateral, operate in the ordinary course and not engage in a change of control, dissolve or wind up the Company. The Credit Agreement also contains certain events of default including, without limitation: the failure to make payments when due; the material breach of representations or warranties contained in the Credit Agreement or other loan documents; cross-default with other indebtedness of the Company; the entry of judgments or fines that may have a material adverse effect on the Company; failure to comply with the observance or performance of covenants contained in the Credit Agreement or other loan documents; insolvency of the Company, appointment of a receiver, commencement of bankruptcy or other insolvency proceedings; dissolution of the Company; the attachment of any state or federal tax lien; attachment or levy upon or seizure of the Company’s property; or any change in the Company’s condition that may have a material adverse effect. After an event of default, and upon the continuation thereof, the principal amount of all loans made under the Credit Facility would bear interest at a rate per annum equal to 20.00% above the otherwise applicable interest rate (provided, that the interest rate may not exceed the highest rate permissible under law), and would have the option to accelerate maturity and payment of the Company’s obligations under the Credit Facility. The Company was in compliance with all of the covenants associated with the Credit Facility at March 31, 2021. PPP Loan On April 22, 2020, the Company entered into a Payroll Protection Program (PPP) loan agreement (the “SBA Loan”) with Jefferson Bank and Trust Company under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) administered by the U.S. Small Business Administration (the “SBA”). The Company received total proceeds of $2.375 million from the SBA Loan. In accordance with the requirements of the CARES Act, the Company used proceeds from the SBA Loan for payroll costs and other permitted uses. The SBA Loan is scheduled to mature on April 13, 2022 and has a 1.00% interest rate and is subject to the terms and conditions applicable to loans administered by the U.S. Small Business Administration under the CARES Act. All or a portion of the SBA Loan may be forgiven by the SBA upon application by the Company upon documentation of expenditures in accordance with the SBA requirements. Under the CARES Act, loan forgiveness is available for the sum of documented payroll costs, covered rent payments, covered mortgage interest and covered utilities during the eight week or at the Company’s election 24 week period beginning on the loan origination date, subject to regulations and guidance provided by the United States Treasury. For purposes of the CARES Act, payroll costs exclude compensation of an individual employee in excess of $100,000, prorated annually. Not more than 40% of the forgiven amount may be for non-payroll costs. Forgiveness is reduced if full-time headcount declines, or if salaries and wages for employees with salaries of $100,000 or less annually are reduced by more than 25%. The Company has submitted its application for forgiveness and is awaiting approval from the SBA. In the event the SBA Loan, or any portion thereof, is forgiven pursuant to the CARES Act, the amount forgiven is applied to outstanding principal. The Company has filed an application for forgiveness of the entire principal of the SBA Loan but cannot guarantee whether or to what extent such forgiveness will be granted. Payments of unforgiven principal and interest are deferred until the date that SBA remits the Company's loan forgiveness amount to the lender, at which point the Company is required to repay such amounts in equal monthly payments over the remainder of the two year term of the SBA Loan. The SBA Loan is evidenced by a promissory note, which contains customary events of default relating to, among other things, payment defaults and breaches of representations and warranties. The SBA Loan may be prepaid by the Company at any time prior to maturity with no prepayment penalties. At March 31, 2021 the Company had $3.9 million of indebtedness outstanding, including lease obligations, short-term debt, and long term debt. The prime rate as reported in the Wall Street Journal was 3.25% on March 31, 2021.

Income Taxes

Income Taxes	9 Months Ended
	Mar. 31, 2021
Income Taxes
Income Taxes	7. Income Taxes The Company accounts for income taxes under ASC Topic 740: “Income Taxes.” Under ASC 740, the deferred tax provision is determined using the liability method, whereby deferred tax assets and liabilities are recognized based upon temporary differences between the financial statement and income tax bases of assets and liabilities using presently enacted tax rates. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. As a result of the Consolidated Appropriations Act of 2021 signed by the President on December 27, 2020, approximately $2,400,000 of expenses incurred that were attributed to the Company’s PPP loan became deductible in the three months ended December 31, 2020. The deductibility of these expenses created a tax loss for the nine months ended March 31, 2021. In the three and nine months ended March 31, 2021 the Company recorded the tax benefit of losses incurred in the amount of approximately $133,000 and $582,000, respectively. As the realization of the tax benefit of the net operating loss is not assured, an additional valuation allowance of a like amount was recorded. For the three and nine months ended March 31, 2020 the Company recorded the tax benefit of losses incurred in the amount of approximately $82,000 and $623,000. As the realization of the tax benefit of the net operating loss is not assured an additional valuation allowance of a like amount was recorded. The total valuation allowance recorded by the Company as of March 31, 2021 and 2020 was approximately $3, 357,000 and $3,348,000, respectively. To the extent that the Company incurs losses in future quarters, the tax benefit of those losses will be subject to a valuation allowance. To the extent the Company has taxable income, the taxable income will be offset by net operating loss carryforwards.

Summary of Significant Accoun_2

Summary of Significant Accounting and Reporting Policies (Policies)	9 Months Ended
	Mar. 31, 2021
Summary of Significant Accounting and Reporting Policies
Basis of Presentation	Basis of Presentation The accompanying unaudited financial statements of Allied Healthcare Products, Inc. (the “Company”) have been prepared in accordance with the instructions for Form 10‑Q and do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for a fair presentation, have been included. Operating results for any quarter are not necessarily indicative of the results for any other quarter or for the full year. These statements should be read in conjunction with the financial statements and notes to the financial statements thereto included in the Company’s Annual Report on Form 10‑K for the year ended June 30, 2020.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and the revolving credit facility. The carrying amounts for cash and cash equivalents, accounts receivable and accounts payable approximate their fair value due to the short maturity of these instruments. The carrying amount of the revolving credit facility approximates fair value due to the debt having a variable interest rate.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“ASU 2016-13”), which changes the way companies evaluate credit losses for most financial assets and certain other instruments. For trade and other receivables, held-to-maturity debt securities, loans and other specified instruments, entities will be required to use a new forward-looking “expected loss” model to evaluate impairment, potentially resulting in earlier recognition of allowances for losses. The new standard also requires enhanced disclosures, including the requirement to disclose the information used to track credit quality by year of origination for most financing receivables. The guidance must be applied using a cumulative-effect transition method. ASU 2016-13 is effective for fiscal years beginning after December 15, 2020, and for interim periods within those fiscal years (the fiscal year ending June 30, 2022 for the Company), with early adoption permitted. The Company is currently evaluating the impact that adopting this guidance may have on its financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in this update eliminate the need for an organization to analyze whether certain exceptions apply for tax purposes. It also simplifies GAAP for certain taxes. The amendments in these updates are effective for us for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We do not expect the adoption of this standard to have a material impact on our financial statements.
Risk and Uncertainties, Liquidity and Management's Plan	Risk and Uncertainties, Liquidity and Management’s Plan A novel strain of coronavirus (“COVID-19”) was first identified in Wuhan, China in December 2019. On March 11, 2020, the World Health Organization designated COVID-19 as a global pandemic. To date, COVID-19 has surfaced in nearly all regions around the world and resulted in business slowdowns or shutdowns in affected areas. Despite our efforts to manage and remedy the effects of this pandemic, the significance depends on factors beyond our control, including the duration and severity of the outbreak as well as third-party actions taken to contain the spread and mitigate public health efforts. For the Company this creates additional economic uncertainty. Risks for the Company include disruption in operations if a significant percentage of our workforce is unable to work due to illness, forced curtailment of business operations and business travel by governmental authorities, and failure of others in our supply chain and distribution channel to meet their obligations to us, or significant disruptions in their ability to do so, which may be caused by their own financial or operational difficulties. Management believes that the combination of cash on hand at March 31, 2021, additional borrowings available on the credit facility (Note 6), reductions in inventory levels and future earnings will be sufficient to meet its obligations as they become due in the ordinary course of business for at least 12 months following the date these financial statements are issued. If additional liquidity would be required, the Company would consider additional borrowings through the sale leaseback of its corporate headquarters and delaying certain expenditures until sufficient capital becomes available.

Revenues (Tables)

Revenues (Tables)	9 Months Ended
	Mar. 31, 2021
Revenues
Schedule of Revenue from external customers by geographic areas	Sales by region, and by product, are as follows: Sales by Region Three months ended Nine months ended March 31, March 31, 2021 2020 2021 2020 Domestic United States $ 5,981,994 $ 6,142,406 $ 18,882,774 $ 17,338,254 Europe 506,703 148,255 3,953,776 545,372 Canada 232,994 186,032 1,113,527 555,410 Latin America 491,897 782,650 2,287,691 2,345,441 Middle East 66,105 205,633 1,084,087 429,590 Far East 687,374 632,239 1,937,057 2,167,995 Other International — — 1,231 574 $ 7,967,067 $ 8,097,215 $ 29,260,143 $ 23,382,636
Schedule of Revenue from external customers by products and services	Sales by Product Three months ended Nine months ended March 31, March 31, 2021 2020 2021 2020 Respiratory care products $ 2,130,073 $ 2,289,920 $ 6,116,737 $ 6,507,371 Medical gas equipment 3,902,729 3,848,923 12,215,799 11,453,496 Emergency medical products 1,934,265 1,958,372 10,927,607 5,421,769 $ 7,967,067 $ 8,097,215 $ 29,260,143 $ 23,382,636

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Mar. 31, 2021
Inventories
Schedule of Inventories	Inventories are comprised as follows: March 31, 2021 June 30, 2020 Work-in progress $ 964,487 $ 817,692 Component parts 8,795,232 8,299,972 Finished goods 1,732,374 1,660,158 Reserve for obsolete and excess inventories (1,849,134) (1,849,134) $ 9,642,959 $ 8,928,688

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Mar. 31, 2021
Commitments and Contingencies
Schedule of liability for future environmental expenditures	Balance - July 1, 2020 $ 1,037,000 Charges to income — Remedial and investigatory spending 15,806 Balance - March 31 , 2021 $ 1,021,194 March 31, 2021 June 30, 2020 Reflected in the Balance Sheet as: Current, included in Other Liabilities $ 1,021,194 $ 514,000 Long-term environmental — 523,000 Total liability $ 1,021,194 $ 1,037,000

Revenues - Sales By Region (Det

Revenues - Sales By Region (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Net sales	$ 7,967,067	$ 8,097,215	$ 29,260,143	$ 23,382,636
Domestic United States
Net sales	5,981,994	6,142,406	18,882,774	17,338,254
Europe
Net sales	506,703	148,255	3,953,776	545,372
Canada
Net sales	232,994	186,032	1,113,527	555,410
Latin America
Net sales	491,897	782,650	2,287,691	2,345,441
Middle East
Net sales	66,105	205,633	1,084,087	429,590
Far East
Net sales	$ 687,374	$ 632,239	1,937,057	2,167,995
Other International
Net sales			$ 1,231	$ 574

Revenues - Revenue from Externa

Revenues - Revenue from External Customers (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Net sales	$ 7,967,067	$ 8,097,215	$ 29,260,143	$ 23,382,636
Respiratory care products
Net sales	2,130,073	2,289,920	6,116,737	6,507,371
Medical gas equipment
Net sales	3,902,729	3,848,923	12,215,799	11,453,496
Emergency medical products
Net sales	$ 1,934,265	$ 1,958,372	$ 10,927,607	$ 5,421,769

Revenues (Details)

Revenues (Details)	9 Months Ended
	Mar. 31, 2021segment
Number of operating segments	1
Minimum
Cash discount term	15 days
Maximum
Cash discount term	30 days

Inventories (Details)

Inventories (Details) - USD ($)	Mar. 31, 2021	Jun. 30, 2020
Inventories
Work-in progress	$ 964,487	$ 817,692
Component parts	8,795,232	8,299,972
Finished goods	1,732,374	1,660,158
Reserve for obsolete and excess inventories	(1,849,134)	(1,849,134)
Inventories	$ 9,642,959	$ 8,928,688

Earnings per share (Details)

Earnings per share (Details) - shares	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Earnings Per Share
Number of basic shares outstanding	4,013,537	4,013,537	4,013,537	4,013,537
Number of diluted shares outstanding	4,013,537	4,013,537	4,027,310	4,013,537

Commitments and Contingencies -

Commitments and Contingencies - Liability for future environmental expenditures (Details) - USD ($)	9 Months Ended	12 Months Ended
	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2021	Jun. 30, 2020
Commitments and Contingencies
Beginning Balance	$ 1,037,000
Charges to income		$ 1,100,000
Remedial and investigatory spending	15,806
Ending Balance	1,021,194	1,037,000
Current, included in Other Liabilities			$ 1,021,194	$ 514,000
Long-term environmental			0	523,000
Total liability	$ 1,021,194	$ 1,037,000	$ 1,021,194	$ 1,037,000

Commitments and Contingencies_2

Commitments and Contingencies (Details) - USD ($)	9 Months Ended	12 Months Ended
	Mar. 31, 2021	Jun. 30, 2020
Commitments and Contingencies
Environmental Remediation Expense		$ 1,100,000
Payments for Environmental Liabilities	$ 98,000

Financing (Details)

Financing (Details) - USD ($)	Apr. 22, 2020	Feb. 27, 2017	Mar. 31, 2021
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage			20.00%
Line of Credit Facility, Expiration Date		Feb. 27, 2023
Line of Credit Facility, Frequency of Payment and Payment Terms			the Company will pay a minimum amount of .25% (25 basis points) per month on the maximum availability ($10,000 per month).
Total indebtedness			$ 3,900,000
Summit Financial Resources Lp [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line Of Credit Facility, Maximum Borrowing Capacity		$ 4,000,000
Debt Instrument, Basis Spread on Variable Rate		2.00%
Line of Credit Facility, Remaining Borrowing Capacity			$ 1,700,000
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage		0.47%
Summit Financial Resources Lp [Member] | Revolving Credit Facility [Member] | Prime Rate [Member]
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Effective Percentage			3.25%
Payroll Protection Program loan
Debt Instrument [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	1.00%
Loan proceeds	$ 2,375,000

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Income Taxes
Deferred Other Tax Expense (Benefit)	$ (133,000)	$ (82,000)	$ (582,000)	$ (623,000)
Deferred Tax Assets, Valuation Allowance	3,357,000	$ 3,348,000	$ 3,357,000	$ 3,348,000
Deductible expenses attributed to PPP loan	$ 2,400,000