Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Sep. 13, 2021 | Dec. 31, 2020 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
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 Voluntary Filers | No | ||
Entity Public Float | $ 15,968,116 | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Common Stock, $.01 | ||
Entity File Number | 0-19266 | ||
Document Annual Report | true | ||
Security Exchange Name | NASDAQ |
STATEMENT OF OPERATIONS
STATEMENT OF OPERATIONS - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
STATEMENT OF OPERATIONS | |||
Net sales | $ 36,279,476 | $ 31,894,262 | $ 31,381,521 |
Cost of sales | 29,169,980 | 26,323,646 | 26,342,894 |
Gross profit | 7,109,496 | 5,570,616 | 5,038,627 |
Selling, general and administrative expenses | 7,636,318 | 8,632,795 | 7,812,649 |
Loss from operations | (526,822) | (3,062,179) | (2,774,022) |
Other (income) expenses: | |||
Interest expense | 115,975 | 64,682 | 56,223 |
Interest income | 233 | 654 | 138 |
Payroll Protection Program loan forgiveness | (2,402,236) | 0 | 0 |
Legal settlement | 0 | 0 | (750,000) |
Other, net | 0 | 18,252 | 130 |
Nonoperating income (expenses) | (2,286,494) | 82,280 | (693,785) |
Income (loss) before provision for income taxes | 1,759,672 | (3,144,459) | (2,080,237) |
Provision for (benefit from) income taxes | 72,484 | (130,359) | 29,448 |
Net income (loss) | $ 1,687,188 | $ (3,014,100) | $ (2,109,685) |
Basic income (loss) per share: | $ 0.42 | $ (0.75) | $ (0.53) |
Diluted income (loss) per share: | $ 0.42 | $ (0.75) | $ (0.53) |
Weighted average shares outstanding - Basic | 4,013,537 | 4,013,537 | 4,013,537 |
Weighted average shares outstanding - Diluted | 4,026,446 | 4,013,537 | 4,013,537 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 726,223 | $ 2,600,083 |
Accounts receivable, net of allowances of $170,000 | 2,929,751 | 3,103,819 |
Inventories, net | 9,450,731 | 8,928,688 |
Income tax receivable | 9,800 | 12,178 |
Other current assets | 268,136 | 229,805 |
Total current assets | 13,384,641 | 14,874,573 |
Property, plant and equipment, net | 3,727,384 | 4,139,693 |
Operating lease assets | 13,078 | 17,326 |
Deferred income taxes | 577,088 | 640,767 |
Total assets | 17,702,191 | 19,672,359 |
Current liabilities: | ||
Current portion of Payroll Protection Program loan | 0 | 1,042,655 |
Revolving credit facility | 2,077,440 | 0 |
Current portion of operating lease liability | 4,777 | 4,249 |
Accounts payable | 1,898,747 | 2,940,006 |
Customer deposits | 575,930 | 2,832,370 |
Other accrued liabilities | 2,557,135 | 2,106,131 |
Total current liabilities | 7,114,029 | 8,925,411 |
Long-term operating lease liability | 8,301 | 13,077 |
Long-term portion of Payroll Protection Program | 0 | 1,332,204 |
Long-term environmental liability | 0 | 523,000 |
Commitments and contingencies (Notes 4 and 9) | ||
Stockholders' equity: | ||
Preferred stock | 0 | 0 |
Common stock; $0.01 par value; 30,000,000 shares authorized; 5,213,902 shares issued at June 30, 2021 and June 30, 2020; 4,013,537 shares outstanding at June 30, 2021 and June 30, 2020 | 52,139 | 52,139 |
Additional paid-in capital | 48,507,738 | 48,493,732 |
Accumulated deficit | (16,999,228) | (18,686,416) |
Less: treasury stock, at cost; 1,200,365 shares at June 30, 2021 and 2020 | (20,980,788) | (20,980,788) |
Total stockholders' equity | 10,579,861 | 8,878,667 |
Total liabilities and stockholders' equity | 17,702,191 | 19,672,359 |
Series A preferred stock [Member] | ||
Stockholders' equity: | ||
Preferred stock | $ 0 | $ 0 |
BALANCE SHEET (Parenthetical)
BALANCE SHEET (Parenthetical) - USD ($) | Jun. 30, 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 [Member] | ||
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, 2018 | $ 52,139 | $ 48,488,220 | $ (13,562,631) | $ (20,980,788) | $ 13,996,940 |
Stock based compensation | 0 | 3,097 | 0 | 0 | 3,097 |
Net income (loss) | 0 | 0 | (2,109,685) | 0 | (2,109,685) |
Balance at End of period at Jun. 30, 2019 | 52,139 | 48,491,317 | (15,672,316) | (20,980,788) | 11,890,352 |
Stock based compensation | 0 | 2,415 | 0 | 0 | 2,415 |
Net income (loss) | 0 | 0 | (3,014,100) | 0 | (3,014,100) |
Balance at End of period at Jun. 30, 2020 | 52,139 | 48,493,732 | (18,686,416) | (20,980,788) | 8,878,667 |
Stock based compensation | 0 | 14,006 | 0 | 0 | 14,006 |
Net income (loss) | 0 | 0 | 1,687,188 | 0 | 1,687,188 |
Balance at End of period at Jun. 30, 2021 | $ 52,139 | $ 48,507,738 | $ (16,999,228) | $ (20,980,788) | $ 10,579,861 |
STATEMENT OF CASH FLOWS
STATEMENT OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 1,687,188 | $ (3,014,100) | $ (2,109,685) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 579,472 | 619,801 | 822,068 |
Stock based compensation | 14,006 | 2,415 | 3,097 |
Provision for doubtful accounts and sales returns and allowances | 19,001 | 21,750 | 19,649 |
PPP loan forgiveness | (2,402,236) | 0 | 0 |
Deferred tax provision | 63,679 | (138,876) | 18,772 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 155,067 | 39,720 | 563,055 |
Inventories | (522,043) | (1,595,593) | 497,446 |
Income tax receivable | 2,378 | 0 | 0 |
Customer deposits | (2,256,440) | 2,269,465 | 192,020 |
Other current assets | (38,331) | 15,103 | 5,697 |
Accounts payable | (1,041,259) | 1,330,172 | (4,386) |
Other accrued liabilities | (44,619) | 1,097,724 | 51,609 |
Net cash provided by (used in) operating activities | (3,784,137) | 647,581 | 59,342 |
Cash flows from investing activities: | |||
Capital expenditures | (167,163) | (617,811) | 0 |
Net cash used in investing activities | (167,163) | (617,811) | 0 |
Cash flows from financing activities: | |||
Borrowings under revolving credit agreement | 36,717,068 | 32,856,428 | 32,176,067 |
Payments under revolving credit agreement | (34,639,628) | (32,856,428) | (32,176,067) |
Proceeds from Payroll Protection Program loan | 0 | 2,374,859 | 0 |
Net cash provided by financing activities | 2,077,440 | 2,374,859 | 0 |
Net increase (decrease) in cash and cash equivalents | (1,873,860) | 2,404,629 | 59,342 |
Cash and cash equivalents at beginning of year | 2,600,083 | 195,454 | 136,112 |
Cash and cash equivalents at end of year | 726,223 | 2,600,083 | 195,454 |
Supplemental disclosures of cash flow information: | |||
Income taxes | 6,428 | 8,517 | 10,675 |
Interest | 115,975 | 64,682 | 56,223 |
Non-cash investing and financing activities | |||
Lease liability and right of use asset arising from operating leases | 0 | 17,326 | 0 |
Capital expenditures included in accounts payable at year end | $ 0 | $ 140,602 | $ 0 |
Organization
Organization | 12 Months Ended |
Jun. 30, 2021 | |
Organization | |
Organization | 1. Organization Allied Healthcare Products, Inc. (the “Company” or “Allied”) is a manufacturer of respiratory products used in the health care industry in a wide range of hospital and alternate site settings, including post-acute care facilities, home health care and trauma care. The Company’s product lines include respiratory care products, medical gas equipment and emergency medical products. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2021 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies The significant accounting policies followed by the Company are described below. Use of estimates The policies utilized by the Company in the preparation of the financial statements conform to accounting principles generally accepted in the United States of America, and require management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from those estimates. Revenue recognition 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 satisfaction of its performance obligation which occurs on the transfer of control of the product, 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. 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 adjusts 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. All taxes imposed on and concurrent with revenue producing transactions and collected by the Company are excluded from the measurement of transaction price. Marketing and Advertising Costs Promotional and advertising costs are expensed as incurred and are included in selling, general and administrative expenses in the Statement of Operations. Advertising expenses for the years ended June 30, 2021, 2020 and 2019 were $0, $3,550, and $0, respectively. Cash and cash equivalents For purposes of the statement of cash flows, the Company considers all highly liquid investments with a maturity of three months or less when acquired to be cash equivalents. The Company maintains funds in bank accounts that, at times, may exceed the limit insured by the Federal Deposit Insurance Corporation. The risk of loss attributable to these uninsured balances is mitigated by depositing funds only in high credit quality financial institutions. The Company has not experienced any losses in such accounts. Foreign currency transactions Allied has international sales which are denominated in U.S. dollars, the functional currency for these transactions. Accounts receivable and concentrations of credit risk Accounts receivable are recorded at the invoiced amount. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. The Company maintains reserves for potential credit losses based on past experience and an analysis of current amounts due, and historically such losses have been within management’s expectations. The Company maintains an allowance for doubtful accounts to reflect the uncollectibility of accounts receivable based on past collection history and specific risks identified among uncollected accounts. Accounts receivable are charged to the allowance for doubtful accounts when the Company determines that the receivable will not be collected and/or when the account has been referred to a third party collection agency. The Company’s customers can be grouped into three main categories: medical equipment distributors, construction contractors and health care institutions. At June 30, 2021, the Company believes that it has no significant concentration of credit risk. Inventories Inventories are stated at the lower of cost, determined using the last-in, first-out (“LIFO”) method, or market. If the first-in, first-out method (which approximates replacement cost) had been used in determining cost, inventories would have been $2,149,560 and $2,408,878 higher at June 30, 2021 and 2020, respectively. Changes in the LIFO reserve are included in cost of sales. Cost of sales was reduced by $0, $0, and $120,965 in fiscal 2021, 2020, and 2019 respectively, as a result of LIFO liquidations. Costs in inventory include raw materials, direct labor and manufacturing overhead. Inventory is recorded net of a reserve for obsolete and excess inventory which is determined primarily based on an analysis of inventory items with no usage in the preceding year and for inventory items for which there is greater than two years’ usage on hand. The reserve for obsolete and excess inventory was $2,174,149 and $1,849,134 at June 30, 2021 and 2020, respectively. Property, plant and equipment Property, plant and equipment are recorded at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, which range from 3 to 35 years. Expenditures for repairs, maintenance and renewals are charged to income as incurred. Expenditures, which improve an asset or extend its estimated useful life, are capitalized. When properties are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is included in income. Impairment of long-lived assets The Company evaluates impairment of long-lived assets under the provisions of ASC Topic 360: “Property, Plant and Equipment.” ASC 360 provides a single accounting model for long-lived assets to be disposed of and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Under ASC 360, if the sum of the expected future cash flows (undiscounted and without interest charges) of the long-lived assets is less than the carrying amount of such assets, an impairment loss will be recognized. No impairment losses of long-lived assets or identifiable intangibles were recorded by the Company for fiscal years ended June 30, 2021, 2020, and 2019. Collective Bargaining Agreement At June 30, 2021, the Company had approximately 189 full-time employees. Approximately 114 employees in the Company’s principal manufacturing facility located in St. Louis, Missouri, are covered by a collective bargaining agreement that will expire on July 31, 2024. Self-insurance The Company maintains a self-insurance program for a portion of its health care costs. Self-insurance costs are accrued based upon the aggregate of the liability for reported claims and the estimated liability for claims incurred but not reported. As of June 30, 2021 and 2020, the Company had $120,000 and $150,000, respectively, of accrued liabilities related to health care claims. In order to establish the self-insurance reserves, the Company utilized actuarial estimates of expected claims based on analyses of historical data. Fair value of financial instruments The Company’s financial instruments include cash, accounts receivable , the revolving line of credit and accounts payable. The carrying amounts for cash, accounts receivable , the revolving line of credit and accounts payable approximate their fair value due to the short maturity of these instruments. 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 enacted tax rates that are expected to apply to taxable income when such assets and liabilities are anticipated to be settled or realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as tax expense or benefit in the period that includes the enactment date of the change. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. In assessing the need for a valuation allowance the Company first considers the reversals of existing temporary deferred tax liabilities and available tax planning strategies. To the extent these items are not sufficient to cause the realization of deferred tax assets, the Company considers the availability of future taxable income to the extent such income is considered likely to occur based on the Company’s earnings history, current income trends and projections. In light of its history of operating losses the Company does not rely on the existence of future taxable income as it currently cannot conclude future taxable income is likely to occur. The Company does rely on reversals of existing temporary deferred tax liabilities and tax planning strategies to the extent available to support the value of its existing deferred tax assets. To the extent the Company’s deferred tax assets exceeded the amount supportable through reversals of existing deferred tax liabilities and tax planning strategies, a valuation allowance is recorded against the excess deferred tax assets. The Company recognizes tax liabilities when, despite the Company’s belief that its tax return positions are supportable, the Company believes that certain positions may not be fully sustained upon review by tax authorities. Benefits from tax positions are measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement. To the extent the Company deems it necessary to record a liability for its tax positions, the current portion of the liability is included in income taxes payable and the noncurrent portion is included in other liabilities on the balance sheet. If upon the final tax outcome of these matters the ultimate liability is different than the amounts recorded, such differences are reflected in income tax expense in the period in which such determination is made. The Company files a federal and multiple state income tax returns. With few exceptions, the Company’s federal and state income tax returns are open for fiscal years ending after June 30, 2018. The Company classifies interest expenses on taxes payable as interest expense. Penalties are classified as a component of other expenses. Research and development costs Research and development costs are expensed as incurred and are included in selling, general and administrative expenses. Research and development expenses for the years ended June 30, 2021, 2020 and 2019 were $571,535, $595,236, and $459,455, respectively. Earnings per share Basic earnings per share are based on the weighted average number of shares of common stock outstanding during the year. 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 year. The weighted average number of basic shares outstanding for the years ended June 30, 2021, 2020 and 2019 was 4,013,537 shares. The weighted average number of diluted shares outstanding for the years ended June 30, 2021, 2020 and 2019 was 4,026,446, 4,013,537 and 4,013,537 shares, respectively. The dilutive effect of the Company’s employee and director stock option plans are determined by use of the treasury stock method. There are 20,250 potential common shares excluded from the calculation of net income per share, as their effect would be anti-dilutive for the year ended June 30, 2021. There are no potential common shares excluded from the calculation of net loss per share, as their effect would be anti-dilutive for the years ended June 30, 2020 and 2019. The following information is necessary to calculate earnings per share for the periods presented: Year ended June 30, 2021 2020 2019 Net income (loss), as reported $ 1,687,188 $ (3,014,100) $ (2,109,685) Weighted average common shares outstanding 4,013,537 4,013,537 4,013,537 Effect of dilutive stock options 12,909 - - Weighted average diluted common shares outstanding 4,026,446 4,013,537 4,013,537 Net Income (loss) per common share Basic $ 0.42 $ (0.75) $ (0.53) Diluted $ 0.42 $ (0.75) $ (0.53) Employee stock options excluded from computation of diluted income per share amounts because their effect would be anti-dilutive — — Employee stock-based compensation The company follows the provisions of ASC Topic 718: “Compensation – Stock Compensation”, which sets accounting requirements for “share-based” compensation to employees, including employee stock purchase plans, and requires companies to recognize in the statement of operations the grant-date fair value of the stock options and other equity-based compensation. The fair value of options granted is estimated on the date of grant using the Black-Scholes option-pricing model. The following table summarizes the weighted average assumptions utilized in the Black-Scholes option pricing model for options granted during the fiscal years ended June 30, 2021, 2020 and 2019. 2021 2020 2019 Weighted-average fair value $ 6.44 $ 0.61 $ 1.06 Weighted-average volatility 109 % 53 % 48 % Weighted-average expected life (in years) 6.0 6.0 6.0 Weighted-average risk-free interest rate 0.52 % 1.77 % 3.03 % Dividend yield 0 % 0 % 0 % Expected volatility is based on the historical volatility of the Company’s common stock to estimate future volatility. The risk-free rates are taken from rates as published by the Federal Reserve and represent the yields on actively traded treasury securities for terms equal or approximately equal to the expected terms of the options. The expected term is calculated using the SEC Staff Accounting Bulletin 107 (ASC 718‑10‑S99) simplified method. Forfeitures are recognized as they occur. The dividend yield is zero based on the fact that the Company has no intention of paying dividends in the near term. Share-based compensation expense included in the Statement of Operations for the fiscal years ended June 30, 2021, 2020 and 2019 was approximately $14,000, $2,000 and $3,000, respectively. Unrecognized shared-based compensation cost related to unvested stock options as of June 30, 2021 amounts to approximately $9,000. The cost is expected to be recognized through fiscal 2025. The Company recognized an income tax benefit for share-based compensation arrangements of approximately $6,000, $1,000 and $1,000 respectively for the years ended June 30, 2021, 2020 and 2019, all of which were fully offset by an increase in the deferred tax asset valuation allowance. No stock options were exercised during fiscal years 2021, 2020 and 2019. Leases In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842), which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. The standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The new standard was effective for Allied on July 1, 2019. The Company adopted the new standard on its effective date and used the effective date as our date of initial application. Consequently, financial information recorded and the disclosures required under the new standard are not provided for dates and periods before July 1, 2019. Additionally, the Company determined that as of the effective date of the standard, it had no material impact on the financial statements or disclosures of the Company. The new standard provides a number of optional practical expedients in transition. The Company elected the package of practical expedients which does not require us to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. Leasing activities are not significant to Allied’s business and there is no significant change in the Company’s leasing activities upon adoption. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company elected the short-term lease recognition exemption for all leases with terms of less than 12 months. 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. Environmental Remediation The Company is subject to federal and state requirements for protection of the environment, including the remediation of contaminated sites. The Company’s policy is to accrue and charge to current expense identified exposures related to environmental remediation sites when it is probable that a liability has been incurred and the amount can be reasonably estimated. The amount of the liability is based on the best estimate or the low end of a range of reasonably possible exposure for investigation, cleanup, and monitoring costs to be incurred. Estimated remediation costs are not discounted to present value. On January 30, 2020, the Company filed a Citizen Participation Plan with the New York Department of Environmental Conservation under its Brownfield Cleanup Program. The plan was filed with respect to the Company’s property in Stuyvesant Falls, New York. The plan recognizes that the soil and groundwater at the Stuyvesant Falls facility is impacted by chemical compounds exceeding regulatory standards. On October 13, 2020, the Company executed a Brownfield Cleanup Program Agreement with the Department of Environmental Conservation with respect to the property. Under the agreement, the Company has voluntarily agreed to conduct, at its expense, certain remedial investigations and remedial actions with respect to suspected soil and groundwater contamination at the site with oversight by the department. The Company’s best estimate of the expected cost to remediate the site is $1.1 million. This amount was recorded as an expense in the fiscal year ended June 30, 2020 and is reflected in other accrued liabilities and selling, general and administrative expenses in the Company’s financial statements. As of June 30, 2021, the Company has paid approximately $142,000 in remediation expenses which have been charged to the initial reserve. Risk and Uncertainties, Going Concern, 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. |
Financing
Financing | 12 Months Ended |
Jun. 30, 2021 | |
Financing | |
Financing | 3. 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 June 30, 2021 availability under the agreement was approximately $630,000. 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 June 30, 2021. PPP Loan On April 13, 2020, the Company entered into a Payroll Protection Program (PPP) loan agreement (the “SBA Loan”) with Jefferson Bank and Trust Company under the recently enacted 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 was 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. The loan, including all principal and accrued interest, was forgiven on June 11, 2021. The company elected to account for the PPP Loan using FASB ASC 470, Debt. The related forgiveness income is included in other income for the year ended June 30, 2021. According to the rules of the SBA, the Company is required to retain PPP Loan documentation for six years after the date the loan is forgiven or repaid in full, and permit authorized representatives of the SBA, including representatives of its Office of Inspector General, to access such files upon request. Should the SBA conduct such a review and reject all or some of the Company’s judgments pertaining to satisfying PPP Loan eligibility or forgiveness conditions, the Company may be required to adjust previously reported amounts and disclosures in the financial statements. At June 30, 2021, the Company had $2.1 million indebtedness, including lease obligations and short-term debt. The prime rate as reported in the Wall Street Journal was 3.25% on June 30, 2021. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Jun. 30, 2021 | |
Lease Commitments | |
Lease Commitments | 4. Lease Commitments The Company leases vehicles and equipment, generally for terms of three to five years. As described in Note 2, “Summary of Significant Accounting Policies” the Company adopted ASC Topic 842, Leases (“ASC 842” or “Topic 842”), utilizing the modified retrospective adoption method with an effective date of July 1, 2019. The Company made the election to not apply the recognition requirements in Topic 842 to short-term leases (i.e., leases of 12 months or less). Instead, as permitted by Topic 842, the Company recognizes the lease payments under its short-term leases in profit or loss on a straight-line basis over the lease term. The Company elected this accounting policy for all classes of underlying assets. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company generally uses the rate implicit in the lease to discount lease payments to present value. As of June 30, 2021, the Company had vehicles and equipment financed under operating leases with lease terms expiring through 2024. Rent expense consists of monthly rental payments under the terms of the Company’s lease agreements recognized on a straight-line basis. The following table sets forth the Company’s future minimum lease payments under operating lease liabilities recorded on the Company’s balance sheet as of June 30, 2021. Maturity of Operating Lease Fiscal years ending Liabilities 2022 $ 6,065 2023 6,065 2024 3,032 Total lease payments 15,162 Less: amounts representing interest 2,084 Present value of lease liabilities 13,078 Less: current portion 4,777 Long-term portion $ 8,301 The Company’s operating lease cost amounted to $59,432 in 2021 and $74,009 in 2020. Expenses are classified within selling, general and administrative expenses in the Company’s statement of operations for the year ended June 30, 2021 and 2020. The table below presents lease-related terms and discount rates as of June 30, 2021. June 30, 2021 Weighted average remaining lease terms Operating leases 2.5 years Weighted average discount rate Operating leases 12 % |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2021 | |
Income Taxes | |
Income Taxes | 5. Income Taxes The provision for (benefit from) income taxes consists of the following: 2021 2020 2019 Current: Federal $ — $ 84,420 $ — State 8,805 23,093 10,676 Less net operating loss carryforward applied — (98,996) — Total current 8,805 8,517 10,676 Deferred: Federal (644,606) (182,517) (451,591) State (78,641) 4,405 (65,877) Valuation allowance 786,926 39,236 536,240 Total deferred 63,679 (138,876) 18,772 Provision (benefit) $ 72,484 $ (130,359) $ 29,448 A reconciliation of income taxes, with the amounts computed at the statutory federal rate is as follows: 2021 2020 2019 Computed tax at federal statutory rate $ 367,682 $ (662,125) $ (436,850) State income taxes, net of federal tax (benefit) provision (13,771) (17,475) (61,974) Non deductible expenses 1,570 506,798 7,699 Federal research credit (28,428) (31,076) (22,906) Non taxable income from PPP Loan forgiveness (504,470) — — State NOLs 11,602 30,397 6,772 Stock Options - Expired 5,243 3,763 2,536 Change in tax law allowing deductibilty of PPP Loan related expenses (553,653) — — Other, net (217) 123 (2,069) Valuation Allowance 786,926 39,236 536,240 Total $ 72,484 $ (130,359) $ 29,448 The deferred tax assets and deferred tax liabilities recorded on the balance sheet as of June 30, 2021 and 2020 are as follows: 2021 2020 Deferred tax assets Bad debts $ 25,500 $ 25,500 Intangible assets 745 1,340 Accrued liabilities 458,337 491,605 Stock options 23,403 25,276 Net operating loss and credit carryforwards 4,505,628 3,807,813 Total Assets 5,013,613 4,351,534 Deferred tax liabilities Prepaid expenses 10,341 10,587 Inventory 529,045 614,184 Depreciation 209,997 194,920 Other 125,147 116,007 Total Liabilities 874,530 935,698 Valuation Allowance (3,561,995) (2,775,069) Total deferred taxes $ 577,088 $ 640,767 At June 30, 2021, there were $13.2 million dollars of federal net operating loss carryforwards which will expire in 2031 through 2038 and $3.8 million subject to indefinite carryforward. In addition, the Company has state tax net operating losses of approximately $8.3 million that expire in varying years from 2021 through 2041 and $0.7 million subject to indefinite carryforward. The Company files a federal and multiple state income tax returns. With few exceptions the Company’s federal and state income tax returns are open for fiscal years ending after June 30, 2018. The Company has not taken any uncertain tax positions on its federal or state income tax filings for open tax years. |
Employee Retirement Benefits
Employee Retirement Benefits | 12 Months Ended |
Jun. 30, 2021 | |
Employee Retirement Benefits | |
Employee Retirement Benefits | 6. Employee Retirement Benefits The Company offers a retirement savings plan under Section 401(k) of the Internal Revenue Code to certain eligible salaried employees. Each employee may elect to enter a written salary deferral agreement under which a portion of such employee’s pre-tax earnings may be contributed to the plan. During the fiscal years ended June 30, 2021, 2020 and 2019, the Company made contributions of $186,366, $185,000, and $190,965, respectively, to the retirement savings plan. The Company contributes 2% of eligible salaried employee’s annual income to the plan. In addition, the Company provides a 25% match on the first 8% of employee deferrals for eligible employees. The risk of participating in multi-employer pension plan is different from single-employer plans. Assets contributed to a multi-employer plan by one employer may be used to provide benefits to employees of other participating employers. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. The Company’s participation in a multi-employer pension plan for the year ended June 30, 2021, is outlined in the table below. The “EIN/PN” column provides the Employee Identification Number (EIN) and the three-digit plan number (PN). The most recent Pension Protection Act (PPA) zone status for 2020 and 2019 is for the plan year-ends as indicated below. The zone status is based on information that the Company obtained from the annual funding notice for District No. 9 International Association of Machinists and Aerospace Workers Pension Trust. Among other factors, plans in the red zone are less than 65 percent funded, plans in the yellow zone are between 65 and 80 percent funded, and plans in the green zone are at least 80 percent funded. The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented. In addition to regular plan contributions, the Company may be subject to a surcharge if the plan is in the red zone. The “Surcharge Imposed” column indicates whether a surcharge has been imposed on contributions to the plan. The last column lists the expiration date(s) of the collective-bargaining agreement (CBA) to which the plan is subject. PPA Zone Status Contributions by the Company FIP/RP Status Pending/ Surcharge Expiration Pension Trust Fund EIN/PN 2020 2019 Implemented 2021 2020 2019 Imposed Date of CBA District No. 9 51‑0138317/001 Yellow Yellow Implemented International Association of Machinists and Aerospace Workers Pension Plan 12/31/2020 12/31/2019 N/A $ 315,342 $ 245,824 $ 236,256 No 7/31/2024 The Company was not listed in the Form 5500 for the above plan as of the plan year ends as providing more than 5 percent of total contributions. Under federal pension law, a plan generally is in “endangered” status if its funded percentage is less than 80% (other factors may apply). If a pension plan enters endangered status, the trustees of the plan are required to adopt a funding improvement plan. Funding improvement plans establish benchmarks for pension plans to improve their funding status over a specified period of time. The plan was first certified as being in endangered status in the 2019 Plan Year because the Plan was projected to have a funding deficiency in the 2023 Plan Year. The Plan continues to be in endangered status in the 2020 Plan Year because funding improvement plan contribution rate increases are required to eliminate the Plan’s projected deficiency. In an effort to improve the Plan’s funding situation, the Board of Trustees adopted a funding improvement plan that includes increases in the contribution by employers and/or decreases in the benefit accrual rate for members. As a result, Allied Healthcare Products, Inc. and District 9 of the International Association of Machinist were required to collectively bargain the required Contribution Rate Increase and the impact on the Future Benefit Accrual. On June 30, 2021 the two parties reached agreement on the Funding Improvement Plan. Under the plan, future benefit accruals are eliminated for members and the monthly employer contribution rate will increase by 80%. Additional contributions under the plan will begin on December 1, 2021. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Jun. 30, 2021 | |
Stock Based Compensation | |
Stock Based Compensation | 7. Stock Based Compensation The Company has established a 2009 Incentive Stock Plan. The Employee Plan provides for the granting of options to the Company’s executive officers and key employees to purchase shares of common stock at prices equal to the fair market value of the stock on the date of grant. Options to purchase up to 300,000 shares of common stock may be granted under the Employee Plan. Options generally become exercisable ratably over a four-year period or one-fourth of the shares covered thereby on each anniversary of the date of grant, commencing on the first or second anniversary of the date granted. The right to exercise the options generally expires in ten years from the date of grant, or earlier if an option holder ceases to be employed by the Company. In addition, the Company has established a 2005 Directors Non-Qualified Stock Option Plan and a 2013 Incentive Plan for Non-Employee Directors (collectively the “Directors Plans”). The Directors Plans provide for the granting of options to the Company’s directors who are not employees of the Company to purchase shares of common stock at prices equal to the fair market value of the stock on the date of grant. Options to purchase up to 75,000 shares of common stock may be granted under the Directors Plans. Options shall become exercisable with respect to one-fourth of the shares covered thereby on each anniversary of the date of grant, commencing on the second anniversary of the date granted, except for certain options which become exercisable with respect to all of the shares covered thereby one year after the grant date. The right to exercise the options expires in ten years from the date of grant, or earlier if an option holder ceases to be a director of the Company. Upon stock-settled compensation exercises and awards, the Company issues new shares of common stock. A summary of stock option transactions in fiscal 2019, 2020 and 2021, respectively, pursuant to the Employee Plans and the Directors Plans is as follows: Weighted Average Weighted Remaining Aggregate Average Contractual Intrinsic Shares Exercise Price Term (years) Value June 30, 2018 45,000 $ 5.92 Options Granted 3,000 $ 2.13 Options Exercised — $ 0.00 Options Forfeited or Expired (3,000) $ 8.10 June 30, 2019 45,000 $ 5.52 4.0 $ — Options Granted 7,500 $ 1.20 Options Exercised — $ 0.00 Options Forfeited or Expired (9,750) $ 6.00 June 30, 2020 42,750 $ 4.65 4.1 $ 304,768 Options Granted 3,000 $ 7.86 Options Exercised — $ 0.00 Options Forfeited or Expired (2,250) $ 8.68 June 30, 2021 43,500 $ 4.66 3.8 $ 41,915 Exercisable at June 30, 2021 35,500 $ 4.88 2.6 $ 27,165 The following table provides additional information for options outstanding and exercisable at June 30, 2021: Options Outstanding Weighted Average Weighted Average Range of Exercise Prices Number Remaining Life Exercise Price $1.17 - 6.99 23,250 5.7 years $ $7.00 15,000 0.2 years $ $7.01 - 8.68 5,250 5.5 years $ $1.17 - 8.68 43,500 3.8 years $ Options Exercisable Weighted Average Range of Exercise Prices Number Exercise Price $1.17 - 6.99 18,250 $ $7.00 15,000 $ $7.01 -8.68 2,250 $ $1.17 - 8.68 35,500 $ See Note 2 for discussion of accounting for stock awards and related fair value disclosures. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 12 Months Ended |
Jun. 30, 2021 | |
Supplemental Balance Sheet Information | |
Supplemental Balance Sheet Information | 8. Supplemental Balance Sheet Information June 30, 2021 2020 Inventories Work in progress $ 829,962 $ 817,692 Component parts 8,994,457 8,299,972 Finished goods 1,800,461 1,660,158 Reserve for obsolete and excess inventory (2,174,149) (1,849,134) $ 9,450,731 $ 8,928,688 Estimated Useful Life (years) Property, plant and equipment Machinery and equipment 3‑10 $ 18,998,928 $ 18,831,765 Buildings 28‑35 13,055,628 13,055,628 Land and land improvements 5‑7 919,566 919,566 Total property, plant and equipment at cost 32,974,122 32,806,959 Less accumulated depreciation and amortization (29,246,738) (28,667,266) $ 3,727,384 $ 4,139,693 Depreciation and amortization expense was approximately $0.6 million, $0.6 million, and $0.8 million for the fiscal years ended June 30, 2021, 2020 and 2019, respectively. Other accrued liabilities Accrued compensation expense $ 1,323,901 $ 1,257,332 Environmental remediation 976,720 514,000 Other 256,514 334,799 $ 2,557,135 $ 2,106,131 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies | |
Commitments and Contingencies | 9. 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 intends to continue to conduct business in such a manner as to avert any FDA action seeking to interrupt or suspend manufacturing or require any recall or modification of products. The Company has recognized the 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. Based upon information currently available, management believes that existing accrued liabilities are sufficient. On January 30, 2020, the Company filed a Citizen Participation Plan with the New York Department of Environmental Conservation under its Brownfield Cleanup Program. The plan was with respect to the Company’s property in Stuyvesant Falls, New York. The plan recognizes that the soil and groundwater at the Stuyvesant Falls facility is impacted by chemical compounds exceeding regulatory standards. The Company has applied to the Brownfield Cleanup Program. Pursuant to the plan, the Company will conduct, at its expense, investigation and remediation at the site with oversight by the Department of Environmental Conservation. The Company’s best estimate of the expected cost to remediate the site is $1.1 million. This amount was recorded as an expense in the fiscal year ended June 30, 2020 and is reflected in other accrued liabilities and selling, general and administrative expenses in the Company’s financial statements. As of June 30, 2021, the Company has paid approximately $142,000 in remediation expenses which have been charged to the initial reserve. Liability for future environmental expenditures 2021 2020 Beginning Balance $ 1,037,000 $ — Charges to income — 1,119,155 Remedial and investigatory spending 60,280 82,155 Ending Balance $ 976,720 $ 1,037,000 Reflected in the Balance sheet as: Current, included in Other Liabilities $ 976,720 $ 514,000 Long-term environmental — 523,000 Total $ 976,720 $ 1,037,000 Stuyvesant Falls Power Litigation. The Company has been involved in litigation with Niagara Mohawk Power Corporation d/b/a National Grid (“Niagara”), which provides electrical power to the Company’s facility in Stuyvesant Falls, New York, and one other party. The Company maintained in its defense of the lawsuit that it is entitled to a certain amount of free electricity based on covenants running with the land which have been honored for more than a century. After the commencement of the litigation, Niagara began sending invoices to the Company for electricity used at the Company’s Stuyvesant Falls plant. Niagara’s attempts to collect such invoices were stopped in December 2010 by a temporary restraining order. Among other things, Niagara sought as damages the value of electricity received by the Company without charge. The total value of electricity at issue in the litigation was not known with certainty and Niagara alleged different amounts of damages. Niagara alleged in its Second Amended Verified Complaint, dated February 6, 2012, damages of approximately $469,000 in free electricity from May 2003 through May 2010. Niagara also alleged in its Motion For Summary Judgment, filed on March 14, 2014, damages of approximately $492,000 in free electricity from May 2010 through the date of the filing. In April 2015, Allied received an invoice for electrical power at the Stuyvesant Falls plant with an “Amount Due” balance of $696,000 as of March 31, 2015 without any description as to the period of time covered by the invoice. The Company filed a Motion for Summary Judgment on March 14, 2014, seeking dismissal of Niagara’s claims and oral arguments on the motions were held on June 13, 2014. On October 1, 2014, the Court granted the Company’s motion, denied Niagara’s motion and ruled that the Company is entitled to receive electrical power pursuant to the power covenants. On October 26 and October 30, 2014, Niagara and the other party filed separate notices of appeal of the Court’s decision. On March 31, 2016 the Supreme Court of New York, Appellate Division, Third Department reversed the trial court decision and held that the free power covenants are no longer enforceable. The Company’s application for leave to appeal this ruling was dismissed as premature by the New York Court of Appeals on September 20, 2016. On May 26, 2017 the Company again moved for leave to appeal the March 31, 2016 decision. That motion was granted on October 7, 2017 by the New York State Court of Appeals. The Company filed its brief and record on January 26, 2018. Niagara and the other party to the lawsuit, Albany Engineering Corporation, filed their responses on July 16, 2018 and the Company filed its reply on August 14, 2018. On February 20, 2019, the Company, Niagara and Albany entered into a Final Settlement Agreement pursuant to which the Company agreed, among other things, to cancel and forgo its rights to free power from either Niagara or Albany under the power covenants. The New York State Court of Appeals granted a request of all parties to withdraw the appeal on March 5, 2019 and all parties entered a Stipulation of Discontinuance on March 7, 2019 which discontinued the litigation. By separate agreement, Niagara paid the Company $750,000 as consideration for the Company’s agreements pursuant to the settlement. On March 15, 2019 the Appellate Division of the Supreme Court of New York granted Niagara’s request to withdraw its pending appeal. The matter is now fully concluded. 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. |
Segment Information
Segment Information | 12 Months Ended |
Jun. 30, 2021 | |
Segment Information | |
Segment Information | 10. Segment Information 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. The Company does not have any one single customer that represents more than 10 percent of total sales. Disaggregation information of sales by region, and by product, are as follows: Sales by Region 2021 2020 2019 Domestic United States $ 24,162,321 $ 23,138,276 $ 23,541,614 Europe 4,069,672 1,422,660 877,308 Canada 1,310,440 829,901 758,145 Latin America 2,819,165 3,122,929 2,450,969 Middle East 1,189,139 693,716 464,470 Far East 2,727,508 2,686,206 3,259,905 Other International 1,231 574 29,110 $ 36,279,476 $ 31,894,262 $ 31,381,521 Sales by Product 2021 2020 2019 Respiratory care products $ 8,082,974 $ 8,555,954 $ 8,993,216 Medical gas equipment 15,943,246 15,282,732 16,031,109 Emergency medical products 12,253,256 8,055,576 6,357,196 $ 36,279,476 $ 31,894,262 $ 31,381,521 |
Quarterly Financial Data (unaud
Quarterly Financial Data (unaudited) | 12 Months Ended |
Jun. 30, 2021 | |
Quarterly Financial Data (unaudited) | |
Quarterly Financial Data (unaudited) | 11. Quarterly Financial Data (unaudited) Summarized quarterly financial data for fiscal 2021 and 2020 appears below (all amounts in thousands except per share amounts): June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, Three months ended, 2021 2021 2020 2020 2020 2020 2019 2019 Net sales $ 7,018 $ 7,967 $ 11,104 $ 10,190 $ 8,511 $ 8,097 $ 7,310 $ 7,976 Gross profit 1,188 1,435 2,612 1,874 1,378 1,586 1,347 1,260 Income (loss) from operations (745) (381) 734 (135) (638) (305) (1,512) (607) Net income (loss) 1,553 (413) 700 (153) (539) (330) (1,531) (614) Basic earnings (loss) per share 0.39 (0.10) 0.17 (0.04) (0.14) (0.08) (0.38) (0.15) Diluted earnings (loss) per share 0.39 (0.10) 0.17 (0.04) (0.14) (0.08) (0.38) (0.15) Earnings per share is computed independently for each of the quarters presented. Therefore, the sum of the quarterly amounts will not necessarily equal the total for the year. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2021 | |
Summary of Significant Accounting Policies | |
Use of estimates | Use of estimates The policies utilized by the Company in the preparation of the financial statements conform to accounting principles generally accepted in the United States of America, and require management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from those estimates. |
Revenue recognition | Revenue recognition 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 satisfaction of its performance obligation which occurs on the transfer of control of the product, 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. 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 adjusts 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. All taxes imposed on and concurrent with revenue producing transactions and collected by the Company are excluded from the measurement of transaction price. |
Marketing and Advertising Costs | Marketing and Advertising Costs Promotional and advertising costs are expensed as incurred and are included in selling, general and administrative expenses in the Statement of Operations. Advertising expenses for the years ended June 30, 2021, 2020 and 2019 were $0, $3,550, and $0, respectively. |
Cash and cash equivalents | Cash and cash equivalents For purposes of the statement of cash flows, the Company considers all highly liquid investments with a maturity of three months or less when acquired to be cash equivalents. The Company maintains funds in bank accounts that, at times, may exceed the limit insured by the Federal Deposit Insurance Corporation. The risk of loss attributable to these uninsured balances is mitigated by depositing funds only in high credit quality financial institutions. The Company has not experienced any losses in such accounts. |
Foreign currency transactions | Foreign currency transactions Allied has international sales which are denominated in U.S. dollars, the functional currency for these transactions. |
Accounts receivable and concentrations of credit risk | Accounts receivable and concentrations of credit risk Accounts receivable are recorded at the invoiced amount. The Company performs ongoing credit evaluations of its customers and generally does not require collateral. The Company maintains reserves for potential credit losses based on past experience and an analysis of current amounts due, and historically such losses have been within management’s expectations. The Company maintains an allowance for doubtful accounts to reflect the uncollectibility of accounts receivable based on past collection history and specific risks identified among uncollected accounts. Accounts receivable are charged to the allowance for doubtful accounts when the Company determines that the receivable will not be collected and/or when the account has been referred to a third party collection agency. The Company’s customers can be grouped into three main categories: medical equipment distributors, construction contractors and health care institutions. At June 30, 2021, the Company believes that it has no significant concentration of credit risk. |
Inventories | Inventories Inventories are stated at the lower of cost, determined using the last-in, first-out (“LIFO”) method, or market. If the first-in, first-out method (which approximates replacement cost) had been used in determining cost, inventories would have been $2,149,560 and $2,408,878 higher at June 30, 2021 and 2020, respectively. Changes in the LIFO reserve are included in cost of sales. Cost of sales was reduced by $0, $0, and $120,965 in fiscal 2021, 2020, and 2019 respectively, as a result of LIFO liquidations. Costs in inventory include raw materials, direct labor and manufacturing overhead. Inventory is recorded net of a reserve for obsolete and excess inventory which is determined primarily based on an analysis of inventory items with no usage in the preceding year and for inventory items for which there is greater than two years’ usage on hand. The reserve for obsolete and excess inventory was $2,174,149 and $1,849,134 at June 30, 2021 and 2020, respectively. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment are recorded at cost and are depreciated using the straight-line method over the estimated useful lives of the assets, which range from 3 to 35 years. Expenditures for repairs, maintenance and renewals are charged to income as incurred. Expenditures, which improve an asset or extend its estimated useful life, are capitalized. When properties are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is included in income. |
Impairment of long-lived assets | Impairment of long-lived assets The Company evaluates impairment of long-lived assets under the provisions of ASC Topic 360: “Property, Plant and Equipment.” ASC 360 provides a single accounting model for long-lived assets to be disposed of and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Under ASC 360, if the sum of the expected future cash flows (undiscounted and without interest charges) of the long-lived assets is less than the carrying amount of such assets, an impairment loss will be recognized. No impairment losses of long-lived assets or identifiable intangibles were recorded by the Company for fiscal years ended June 30, 2021, 2020, and 2019. |
Collective Bargaining Agreement | Collective Bargaining Agreement At June 30, 2021, the Company had approximately 189 full-time employees. Approximately 114 employees in the Company’s principal manufacturing facility located in St. Louis, Missouri, are covered by a collective bargaining agreement that will expire on July 31, 2024. |
Self-insurance | Self-insurance The Company maintains a self-insurance program for a portion of its health care costs. Self-insurance costs are accrued based upon the aggregate of the liability for reported claims and the estimated liability for claims incurred but not reported. As of June 30, 2021 and 2020, the Company had $120,000 and $150,000, respectively, of accrued liabilities related to health care claims. In order to establish the self-insurance reserves, the Company utilized actuarial estimates of expected claims based on analyses of historical data. |
Fair Value of Financial Instruments | Fair value of financial instruments The Company’s financial instruments include cash, accounts receivable , the revolving line of credit and accounts payable. The carrying amounts for cash, accounts receivable , the revolving line of credit and accounts payable approximate their fair value due to the short maturity of these instruments. |
Income taxes | 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 enacted tax rates that are expected to apply to taxable income when such assets and liabilities are anticipated to be settled or realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as tax expense or benefit in the period that includes the enactment date of the change. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. In assessing the need for a valuation allowance the Company first considers the reversals of existing temporary deferred tax liabilities and available tax planning strategies. To the extent these items are not sufficient to cause the realization of deferred tax assets, the Company considers the availability of future taxable income to the extent such income is considered likely to occur based on the Company’s earnings history, current income trends and projections. In light of its history of operating losses the Company does not rely on the existence of future taxable income as it currently cannot conclude future taxable income is likely to occur. The Company does rely on reversals of existing temporary deferred tax liabilities and tax planning strategies to the extent available to support the value of its existing deferred tax assets. To the extent the Company’s deferred tax assets exceeded the amount supportable through reversals of existing deferred tax liabilities and tax planning strategies, a valuation allowance is recorded against the excess deferred tax assets. The Company recognizes tax liabilities when, despite the Company’s belief that its tax return positions are supportable, the Company believes that certain positions may not be fully sustained upon review by tax authorities. Benefits from tax positions are measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement. To the extent the Company deems it necessary to record a liability for its tax positions, the current portion of the liability is included in income taxes payable and the noncurrent portion is included in other liabilities on the balance sheet. If upon the final tax outcome of these matters the ultimate liability is different than the amounts recorded, such differences are reflected in income tax expense in the period in which such determination is made. The Company files a federal and multiple state income tax returns. With few exceptions, the Company’s federal and state income tax returns are open for fiscal years ending after June 30, 2018. The Company classifies interest expenses on taxes payable as interest expense. Penalties are classified as a component of other expenses. |
Research and development costs | Research and development costs Research and development costs are expensed as incurred and are included in selling, general and administrative expenses. Research and development expenses for the years ended June 30, 2021, 2020 and 2019 were $571,535, $595,236, and $459,455, respectively. |
Earnings per share | Earnings per share Basic earnings per share are based on the weighted average number of shares of common stock outstanding during the year. 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 year. The weighted average number of basic shares outstanding for the years ended June 30, 2021, 2020 and 2019 was 4,013,537 shares. The weighted average number of diluted shares outstanding for the years ended June 30, 2021, 2020 and 2019 was 4,026,446, 4,013,537 and 4,013,537 shares, respectively. The dilutive effect of the Company’s employee and director stock option plans are determined by use of the treasury stock method. There are 20,250 potential common shares excluded from the calculation of net income per share, as their effect would be anti-dilutive for the year ended June 30, 2021. There are no potential common shares excluded from the calculation of net loss per share, as their effect would be anti-dilutive for the years ended June 30, 2020 and 2019. The following information is necessary to calculate earnings per share for the periods presented: Year ended June 30, 2021 2020 2019 Net income (loss), as reported $ 1,687,188 $ (3,014,100) $ (2,109,685) Weighted average common shares outstanding 4,013,537 4,013,537 4,013,537 Effect of dilutive stock options 12,909 - - Weighted average diluted common shares outstanding 4,026,446 4,013,537 4,013,537 Net Income (loss) per common share Basic $ 0.42 $ (0.75) $ (0.53) Diluted $ 0.42 $ (0.75) $ (0.53) Employee stock options excluded from computation of diluted income per share amounts because their effect would be anti-dilutive — — |
Employee stock-based compensation | Employee stock-based compensation The company follows the provisions of ASC Topic 718: “Compensation – Stock Compensation”, which sets accounting requirements for “share-based” compensation to employees, including employee stock purchase plans, and requires companies to recognize in the statement of operations the grant-date fair value of the stock options and other equity-based compensation. The fair value of options granted is estimated on the date of grant using the Black-Scholes option-pricing model. The following table summarizes the weighted average assumptions utilized in the Black-Scholes option pricing model for options granted during the fiscal years ended June 30, 2021, 2020 and 2019. 2021 2020 2019 Weighted-average fair value $ 6.44 $ 0.61 $ 1.06 Weighted-average volatility 109 % 53 % 48 % Weighted-average expected life (in years) 6.0 6.0 6.0 Weighted-average risk-free interest rate 0.52 % 1.77 % 3.03 % Dividend yield 0 % 0 % 0 % Expected volatility is based on the historical volatility of the Company’s common stock to estimate future volatility. The risk-free rates are taken from rates as published by the Federal Reserve and represent the yields on actively traded treasury securities for terms equal or approximately equal to the expected terms of the options. The expected term is calculated using the SEC Staff Accounting Bulletin 107 (ASC 718‑10‑S99) simplified method. Forfeitures are recognized as they occur. The dividend yield is zero based on the fact that the Company has no intention of paying dividends in the near term. Share-based compensation expense included in the Statement of Operations for the fiscal years ended June 30, 2021, 2020 and 2019 was approximately $14,000, $2,000 and $3,000, respectively. Unrecognized shared-based compensation cost related to unvested stock options as of June 30, 2021 amounts to approximately $9,000. The cost is expected to be recognized through fiscal 2025. The Company recognized an income tax benefit for share-based compensation arrangements of approximately $6,000, $1,000 and $1,000 respectively for the years ended June 30, 2021, 2020 and 2019, all of which were fully offset by an increase in the deferred tax asset valuation allowance. No stock options were exercised during fiscal years 2021, 2020 and 2019. |
Leases | Leases In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842), which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. The standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The new standard was effective for Allied on July 1, 2019. The Company adopted the new standard on its effective date and used the effective date as our date of initial application. Consequently, financial information recorded and the disclosures required under the new standard are not provided for dates and periods before July 1, 2019. Additionally, the Company determined that as of the effective date of the standard, it had no material impact on the financial statements or disclosures of the Company. The new standard provides a number of optional practical expedients in transition. The Company elected the package of practical expedients which does not require us to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. Leasing activities are not significant to Allied’s business and there is no significant change in the Company’s leasing activities upon adoption. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company elected the short-term lease recognition exemption for all leases with terms of less than 12 months. |
Environmental Remediation | Environmental Remediation The Company is subject to federal and state requirements for protection of the environment, including the remediation of contaminated sites. The Company’s policy is to accrue and charge to current expense identified exposures related to environmental remediation sites when it is probable that a liability has been incurred and the amount can be reasonably estimated. The amount of the liability is based on the best estimate or the low end of a range of reasonably possible exposure for investigation, cleanup, and monitoring costs to be incurred. Estimated remediation costs are not discounted to present value. On January 30, 2020, the Company filed a Citizen Participation Plan with the New York Department of Environmental Conservation under its Brownfield Cleanup Program. The plan was filed with respect to the Company’s property in Stuyvesant Falls, New York. The plan recognizes that the soil and groundwater at the Stuyvesant Falls facility is impacted by chemical compounds exceeding regulatory standards. On October 13, 2020, the Company executed a Brownfield Cleanup Program Agreement with the Department of Environmental Conservation with respect to the property. Under the agreement, the Company has voluntarily agreed to conduct, at its expense, certain remedial investigations and remedial actions with respect to suspected soil and groundwater contamination at the site with oversight by the department. The Company’s best estimate of the expected cost to remediate the site is $1.1 million. This amount was recorded as an expense in the fiscal year ended June 30, 2020 and is reflected in other accrued liabilities and selling, general and administrative expenses in the Company’s financial statements. As of June 30, 2021, the Company has paid approximately $142,000 in remediation expenses which have been charged to the initial reserve. |
Risk and Uncertainties, Liquidity and Management's Plan | Risk and Uncertainties, Going Concern, 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. |
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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Summary of Significant Accounting Policies | |
Schedule of information is necessary to calculate earnings per share | The following information is necessary to calculate earnings per share for the periods presented: Year ended June 30, 2021 2020 2019 Net income (loss), as reported $ 1,687,188 $ (3,014,100) $ (2,109,685) Weighted average common shares outstanding 4,013,537 4,013,537 4,013,537 Effect of dilutive stock options 12,909 - - Weighted average diluted common shares outstanding 4,026,446 4,013,537 4,013,537 Net Income (loss) per common share Basic $ 0.42 $ (0.75) $ (0.53) Diluted $ 0.42 $ (0.75) $ (0.53) Employee stock options excluded from computation of diluted income per share amounts because their effect would be anti-dilutive — — |
Schedule of the weighted average assumptions utilized in the Black-Scholes option pricing model for options granted | The following table summarizes the weighted average assumptions utilized in the Black-Scholes option pricing model for options granted during the fiscal years ended June 30, 2021, 2020 and 2019. 2021 2020 2019 Weighted-average fair value $ 6.44 $ 0.61 $ 1.06 Weighted-average volatility 109 % 53 % 48 % Weighted-average expected life (in years) 6.0 6.0 6.0 Weighted-average risk-free interest rate 0.52 % 1.77 % 3.03 % Dividend yield 0 % 0 % 0 % |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Lease Commitments | |
Schedule of Company's future minimum lease payments under operating lease liabilities | The following table sets forth the Company’s future minimum lease payments under operating lease liabilities recorded on the Company’s balance sheet as of June 30, 2021. Maturity of Operating Lease Fiscal years ending Liabilities 2022 $ 6,065 2023 6,065 2024 3,032 Total lease payments 15,162 Less: amounts representing interest 2,084 Present value of lease liabilities 13,078 Less: current portion 4,777 Long-term portion $ 8,301 |
Schedule of lease-related terms and discount rates | The table below presents lease-related terms and discount rates as of June 30, 2021. June 30, 2021 Weighted average remaining lease terms Operating leases 2.5 years Weighted average discount rate Operating leases 12 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Income Taxes | |
Schedule of provision for (benefit from) income taxes | The provision for (benefit from) income taxes consists of the following: 2021 2020 2019 Current: Federal $ — $ 84,420 $ — State 8,805 23,093 10,676 Less net operating loss carryforward applied — (98,996) — Total current 8,805 8,517 10,676 Deferred: Federal (644,606) (182,517) (451,591) State (78,641) 4,405 (65,877) Valuation allowance 786,926 39,236 536,240 Total deferred 63,679 (138,876) 18,772 Provision (benefit) $ 72,484 $ (130,359) $ 29,448 |
Schedule of reconciliation of income taxes, with the amounts computed at the statutory federal rate | A reconciliation of income taxes, with the amounts computed at the statutory federal rate is as follows: 2021 2020 2019 Computed tax at federal statutory rate $ 367,682 $ (662,125) $ (436,850) State income taxes, net of federal tax (benefit) provision (13,771) (17,475) (61,974) Non deductible expenses 1,570 506,798 7,699 Federal research credit (28,428) (31,076) (22,906) Non taxable income from PPP Loan forgiveness (504,470) — — State NOLs 11,602 30,397 6,772 Stock Options - Expired 5,243 3,763 2,536 Change in tax law allowing deductibilty of PPP Loan related expenses (553,653) — — Other, net (217) 123 (2,069) Valuation Allowance 786,926 39,236 536,240 Total $ 72,484 $ (130,359) $ 29,448 |
Schedule of deferred tax assets and liabilities recorded on the balance sheet | The deferred tax assets and deferred tax liabilities recorded on the balance sheet as of June 30, 2021 and 2020 are as follows: 2021 2020 Deferred tax assets Bad debts $ 25,500 $ 25,500 Intangible assets 745 1,340 Accrued liabilities 458,337 491,605 Stock options 23,403 25,276 Net operating loss and credit carryforwards 4,505,628 3,807,813 Total Assets 5,013,613 4,351,534 Deferred tax liabilities Prepaid expenses 10,341 10,587 Inventory 529,045 614,184 Depreciation 209,997 194,920 Other 125,147 116,007 Total Liabilities 874,530 935,698 Valuation Allowance (3,561,995) (2,775,069) Total deferred taxes $ 577,088 $ 640,767 |
Employee Retirement Benefits (T
Employee Retirement Benefits (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Employee Retirement Benefits | |
Schedule of multi-employer pension plan | PPA Zone Status Contributions by the Company FIP/RP Status Pending/ Surcharge Expiration Pension Trust Fund EIN/PN 2020 2019 Implemented 2021 2020 2019 Imposed Date of CBA District No. 9 51‑0138317/001 Yellow Yellow Implemented International Association of Machinists and Aerospace Workers Pension Plan 12/31/2020 12/31/2019 N/A $ 315,342 $ 245,824 $ 236,256 No 7/31/2024 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Stock Based Compensation | |
Schedule of stock option plan activity under employee plans and the directors plans | A summary of stock option transactions in fiscal 2019, 2020 and 2021, respectively, pursuant to the Employee Plans and the Directors Plans is as follows: Weighted Average Weighted Remaining Aggregate Average Contractual Intrinsic Shares Exercise Price Term (years) Value June 30, 2018 45,000 $ 5.92 Options Granted 3,000 $ 2.13 Options Exercised — $ 0.00 Options Forfeited or Expired (3,000) $ 8.10 June 30, 2019 45,000 $ 5.52 4.0 $ — Options Granted 7,500 $ 1.20 Options Exercised — $ 0.00 Options Forfeited or Expired (9,750) $ 6.00 June 30, 2020 42,750 $ 4.65 4.1 $ 304,768 Options Granted 3,000 $ 7.86 Options Exercised — $ 0.00 Options Forfeited or Expired (2,250) $ 8.68 June 30, 2021 43,500 $ 4.66 3.8 $ 41,915 Exercisable at June 30, 2021 35,500 $ 4.88 2.6 $ 27,165 |
Schedule of additional information for options outstanding and exercisable | The following table provides additional information for options outstanding and exercisable at June 30, 2021: Options Outstanding Weighted Average Weighted Average Range of Exercise Prices Number Remaining Life Exercise Price $1.17 - 6.99 23,250 5.7 years $ $7.00 15,000 0.2 years $ $7.01 - 8.68 5,250 5.5 years $ $1.17 - 8.68 43,500 3.8 years $ Options Exercisable Weighted Average Range of Exercise Prices Number Exercise Price $1.17 - 6.99 18,250 $ $7.00 15,000 $ $7.01 -8.68 2,250 $ $1.17 - 8.68 35,500 $ |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Supplemental Balance Sheet Information | |
Schedule of supplemental balance sheet information | June 30, 2021 2020 Inventories Work in progress $ 829,962 $ 817,692 Component parts 8,994,457 8,299,972 Finished goods 1,800,461 1,660,158 Reserve for obsolete and excess inventory (2,174,149) (1,849,134) $ 9,450,731 $ 8,928,688 Estimated Useful Life (years) Property, plant and equipment Machinery and equipment 3‑10 $ 18,998,928 $ 18,831,765 Buildings 28‑35 13,055,628 13,055,628 Land and land improvements 5‑7 919,566 919,566 Total property, plant and equipment at cost 32,974,122 32,806,959 Less accumulated depreciation and amortization (29,246,738) (28,667,266) $ 3,727,384 $ 4,139,693 Depreciation and amortization expense was approximately $0.6 million, $0.6 million, and $0.8 million for the fiscal years ended June 30, 2021, 2020 and 2019, respectively. Other accrued liabilities Accrued compensation expense $ 1,323,901 $ 1,257,332 Environmental remediation 976,720 514,000 Other 256,514 334,799 $ 2,557,135 $ 2,106,131 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies | |
Schedule of liability for future environmental expenditures | 2021 2020 Beginning Balance $ 1,037,000 $ — Charges to income — 1,119,155 Remedial and investigatory spending 60,280 82,155 Ending Balance $ 976,720 $ 1,037,000 Reflected in the Balance sheet as: Current, included in Other Liabilities $ 976,720 $ 514,000 Long-term environmental — 523,000 Total $ 976,720 $ 1,037,000 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Segment Information | |
Schedule of disaggregation information of sales by region and by product | Disaggregation information of sales by region, and by product, are as follows: Sales by Region 2021 2020 2019 Domestic United States $ 24,162,321 $ 23,138,276 $ 23,541,614 Europe 4,069,672 1,422,660 877,308 Canada 1,310,440 829,901 758,145 Latin America 2,819,165 3,122,929 2,450,969 Middle East 1,189,139 693,716 464,470 Far East 2,727,508 2,686,206 3,259,905 Other International 1,231 574 29,110 $ 36,279,476 $ 31,894,262 $ 31,381,521 Sales by Product 2021 2020 2019 Respiratory care products $ 8,082,974 $ 8,555,954 $ 8,993,216 Medical gas equipment 15,943,246 15,282,732 16,031,109 Emergency medical products 12,253,256 8,055,576 6,357,196 $ 36,279,476 $ 31,894,262 $ 31,381,521 |
Quarterly Financial Data (una_2
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Quarterly Financial Data (unaudited) | |
Schedule of quarterly financial data | Summarized quarterly financial data for fiscal 2021 and 2020 appears below (all amounts in thousands except per share amounts): June 30, March 31, Dec. 31, Sept. 30, June 30, March 31, Dec. 31, Sept. 30, Three months ended, 2021 2021 2020 2020 2020 2020 2019 2019 Net sales $ 7,018 $ 7,967 $ 11,104 $ 10,190 $ 8,511 $ 8,097 $ 7,310 $ 7,976 Gross profit 1,188 1,435 2,612 1,874 1,378 1,586 1,347 1,260 Income (loss) from operations (745) (381) 734 (135) (638) (305) (1,512) (607) Net income (loss) 1,553 (413) 700 (153) (539) (330) (1,531) (614) Basic earnings (loss) per share 0.39 (0.10) 0.17 (0.04) (0.14) (0.08) (0.38) (0.15) Diluted earnings (loss) per share 0.39 (0.10) 0.17 (0.04) (0.14) (0.08) (0.38) (0.15) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Summary of information is necessary to calculate earnings per share (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Summary of Significant Accounting Policies | |||||||||||
Net loss, as reported | $ 1,553,000 | $ (413,000) | $ 700,000 | $ (153,000) | $ (539,000) | $ (330,000) | $ (1,531,000) | $ (614,000) | $ 1,687,188 | $ (3,014,100) | $ (2,109,685) |
Weighted average shares outstanding - Basic | 4,013,537 | 4,013,537 | 4,013,537 | ||||||||
Effect of dilutive stock options | 12,909 | 0 | 0 | ||||||||
Weighted average shares outstanding - Diluted | 4,026,446 | 4,013,537 | 4,013,537 | ||||||||
Net Income (loss) per common share | |||||||||||
Basic (in dollars per share) | $ 0.39 | $ (0.10) | $ 0.17 | $ (0.04) | $ (0.14) | $ (0.08) | $ (0.38) | $ (0.15) | $ 0.42 | $ (0.75) | $ (0.53) |
Diluted (in dollars per share) | $ 0.39 | $ (0.10) | $ 0.17 | $ (0.04) | $ (0.14) | $ (0.08) | $ (0.38) | $ (0.15) | $ 0.42 | $ (0.75) | $ (0.53) |
Employee stock options excluded from computation of diluted income per share amounts because their effect would be anti-dilutive | 20,250 | 0 | 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of the weighted average assumptions utilized in the Black-Scholes option pricing model for options granted (Details) - $ / shares | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Summary of Significant Accounting Policies | |||
Weighted-average fair value | $ 6.44 | $ 0.61 | $ 1.06 |
Weighted-average volatility | 109.00% | 53.00% | 48.00% |
Weighted-average expected life (in years) | 6 years | 6 years | 6 years |
Weighted-average risk-free interest rate | 0.52% | 1.77% | 3.03% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | |
Advertising Expense | $ 0 | $ 3,550 | $ 0 |
FIFO Inventory Amount | 2,149,560 | 2,408,878 | |
Decreases In Cost Of Goods Sold | 0 | 0 | 120,965 |
Inventory Valuation Reserves | $ 2,174,149 | 1,849,134 | |
Entity Number of Employees | 189 | ||
Collective Bargaining Period Expiry Date | Jul. 31, 2024 | ||
Health Care Insurance Accrued Liabilities | $ 120,000 | 150,000 | |
Research and Development Expense | 571,535 | 595,236 | 459,455 |
Share-based Compensation | 14,006 | 2,415 | 3,097 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 9,000 | ||
Effective Income Tax Rate Reconciliation, Share-based Compensation, Excess Tax Benefit, Amount | 6,000 | 1,000 | $ 1,000 |
Environmental Remediation Expense | 1,100,000 | 1,119,155 | |
Payment of environmental liabilities | 60,280 | $ 82,155 | |
Total payments for environmental liabilities | $ 142,000 | ||
Minimum | |||
Cash discount term | 15 days | ||
Property, Plant and Equipment, Useful Life | 3 years | ||
Maximum | |||
Cash discount term | 30 days | ||
Property, Plant and Equipment, Useful Life | 35 years | ||
Collective Bargaining Agreement [Member] | |||
Entity Number of Employees | 114 |
Financing (Details)
Financing (Details) - USD ($) | Apr. 13, 2020 | Feb. 27, 2017 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 |
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 | pay a minimum amount of .25% (25 basis points) per month on the maximum availability ($10,000 per month). | ||||
Loan proceeds | $ 0 | $ 2,374,859 | $ 0 | ||
Total indebtedness | 2,100,000 | ||||
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 | $ 630,000 | ||||
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] | |||||
Loan proceeds | $ 2,375,000 |
Lease Commitments - Future mini
Lease Commitments - Future minimum lease payments under operating lease liabilities (Details) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Lease Commitments | ||
2022 | $ 6,065 | |
2023 | 6,065 | |
2024 | 3,032 | |
Total lease payments | 15,162 | |
Less: amounts representing interest | 2,084 | |
Present value of lease liabilities | 13,078 | |
Less: current portion | 4,777 | $ 4,249 |
Long-term portion | $ 8,301 | $ 13,077 |
Lease Commitments - Additional
Lease Commitments - Additional Information (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Lease Commitments | ||
Operating Leases, Rent Expense, Net | $ 59,432 | $ 74,009 |
Lease Commitments - Lease-relat
Lease Commitments - Lease-related terms and discount rates (Details) | Jun. 30, 2021 |
Lease Commitments | |
Operating leases | 2 years 5 months |
Operating leases | 12.00% |
Income Taxes - Summary of provi
Income Taxes - Summary of provision for (benefit from) income taxes (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Current: | |||
Federal | $ 0 | $ 84,420 | $ 0 |
State | 8,805 | 23,093 | 10,676 |
Less net operating loss carryforward applied | 0 | (98,996) | 0 |
Total current | 8,805 | 8,517 | 10,676 |
Deferred: | |||
Federal | (644,606) | (182,517) | (451,591) |
State | (78,641) | 4,405 | (65,877) |
Valuation allowance | 786,926 | 39,236 | 536,240 |
Total deferred | 63,679 | (138,876) | 18,772 |
Provision (benefit) | $ 72,484 | $ (130,359) | $ 29,448 |
Income Taxes - Summary of recon
Income Taxes - Summary of reconciliation of income taxes, with the amounts computed at the statutory federal rate (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Taxes | |||
Computed tax at federal statutory rate | $ 367,682 | $ (662,125) | $ (436,850) |
State income taxes, net of federal tax (benefit) provision | (13,771) | (17,475) | (61,974) |
Non deductible expenses | 1,570 | 506,798 | 7,699 |
Federal research credit | (28,428) | (31,076) | (22,906) |
Non taxable income from PPP Loan forgiveness | (504,470) | 0 | 0 |
State NOLs | 11,602 | 30,397 | 6,772 |
Stock Options - Expired | 5,243 | 3,763 | 2,536 |
Change in tax law allowing deductibilty of PPP Loan related expeses | (553,653) | 0 | 0 |
Other, net | (217) | 123 | (2,069) |
Valuation Allowance | 786,926 | 39,236 | 536,240 |
Provision (benefit) | $ 72,484 | $ (130,359) | $ 29,448 |
Income Taxes - Summary of defer
Income Taxes - Summary of deferred tax assets and liabilities recorded on the balance sheet (Details) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Deferred tax assets | ||
Bad debts | $ 25,500 | $ 25,500 |
Intangible assets | 745 | 1,340 |
Accrued liabilities | 458,337 | 491,605 |
Stock options | 23,403 | 25,276 |
Net operating loss and credit carryforwards | 4,505,628 | 3,807,813 |
Total Assets | 5,013,613 | 4,351,534 |
Deferred tax liabilities | ||
Prepaid expenses | 10,341 | 10,587 |
Inventory | 529,045 | 614,184 |
Depreciation | 209,997 | 194,920 |
Other | 125,147 | 116,007 |
Total Liabilities | 874,530 | 935,698 |
Valuation Allowance | (3,561,995) | (2,775,069) |
Total deferred taxes | $ 577,088 | $ 640,767 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Schedule Of Income Tax Disclosure [Line Items] | |||
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $ 13,200,000 | ||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 8,300,000 | ||
Income Tax Expense (Benefit) | 72,484 | $ (130,359) | $ 29,448 |
Maximum | |||
Schedule Of Income Tax Disclosure [Line Items] | |||
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | 3,800,000 | ||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | $ 700,000 | ||
Domestic Tax Authority [Member] | Minimum | |||
Schedule Of Income Tax Disclosure [Line Items] | |||
Operating Loss Carryforward Expiration Date | 2031 | ||
Domestic Tax Authority [Member] | Maximum | |||
Schedule Of Income Tax Disclosure [Line Items] | |||
Operating Loss Carryforward Expiration Date | 2038 | ||
State and Local Jurisdiction [Member] | Minimum | |||
Schedule Of Income Tax Disclosure [Line Items] | |||
Operating Loss Carryforward Expiration Date | 2021 | ||
State and Local Jurisdiction [Member] | Maximum | |||
Schedule Of Income Tax Disclosure [Line Items] | |||
Operating Loss Carryforward Expiration Date | 2041 |
Employee Retirement Benefits -
Employee Retirement Benefits - Summary of multi-employer pension plan (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Employee Retirement Benefits | |||
Contributions by the Company | $ 315,342 | $ 245,824 | $ 236,256 |
Expiration Date of CBA | Jul. 31, 2024 | ||
Surcharge Imposed | No |
Employee Retirement Benefits _2
Employee Retirement Benefits - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Employee Retirement Benefits | |||
Contribution to retirement savings plan | $ 186,366 | $ 185,000 | $ 190,965 |
Percentage of eligible salaried employees annual income | 2.00% | ||
Percentage of annual income to plan | 25.00% | ||
Percentage of employee deferrals | 8.00% | ||
Percentage of increase in monthly employer contribution rate | 80.00% |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of stock option plan activity under employee plans and the directors plans (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Stock Based Compensation | |||
Beginning Balance, Shares | 42,750 | 45,000 | 45,000 |
Options Granted, Shares | 3,000 | 7,500 | 3,000 |
Options Forfeited or Expired, Shares | (2,250) | (9,750) | (3,000) |
Ending Balance, Shares | 43,500 | 42,750 | 45,000 |
Exercisable, Shares | 35,500 | ||
Beginning Balance, Weighted Average Exercise Price | $ 4.65 | $ 5.52 | $ 5.92 |
Options Granted, Weighted Average Exercise Price | 7.86 | 1.20 | 2.13 |
Options Exercised, Weighted Average Exercise Price | 0 | 0 | 0 |
Options Forfeited or Expired, Weighted Average Exercise Price | 8.68 | 6 | 8.10 |
Ending Balance, Weighted Average Exercise Price | 4.66 | $ 4.65 | $ 5.52 |
Exercisable, Weighted Average Exercise Price | $ 4.88 | ||
Options, Weighted Average Remaining Contractual Terms (years) | 3 years 9 months 18 days | 4 years 1 month 6 days | 4 years |
Exercisable, Weighted Average Remaining Contractual Terms (years) | 2 years 7 months 6 days | ||
Options, Aggregate Intrinsic Value | $ 41,915 | $ 304,768 | $ 0 |
Exercisable, Aggregate Intrinsic Value | $ 27,165 |
Stock Based Compensation - Su_2
Stock Based Compensation - Summary of additional information for options outstanding and exercisable (Details) | 12 Months Ended |
Jun. 30, 2021$ / sharesshares | |
1.17 - 6.99 Exercise Prices | |
Schedule Of Share Based Compensation Stock Options Activity [Line Items] | |
Options Outstanding, Number | shares | 23,250 |
Options Outstanding, Weighted Average Remaining Life | 5 years 8 months 12 days |
Option Outstanding, Weighted Average Exercise Price | $ / shares | $ 2.51 |
Options Exercisable, Number | shares | 18,250 |
Options Exercisable, Weighted Average Exercise Price | $ / shares | $ 2.86 |
7.00 Exercise Prices | |
Schedule Of Share Based Compensation Stock Options Activity [Line Items] | |
Options Outstanding, Number | shares | 15,000 |
Options Outstanding, Weighted Average Remaining Life | 2 months 12 days |
Option Outstanding, Weighted Average Exercise Price | $ / shares | $ 7 |
Options Exercisable, Number | shares | 15,000 |
Options Exercisable, Weighted Average Exercise Price | $ / shares | $ 7 |
7.01 - 8.68 Exercise Prices | |
Schedule Of Share Based Compensation Stock Options Activity [Line Items] | |
Options Outstanding, Number | shares | 5,250 |
Options Outstanding, Weighted Average Remaining Life | 5 years 6 months |
Option Outstanding, Weighted Average Exercise Price | $ / shares | $ 7.53 |
Options Exercisable, Number | shares | 2,250 |
Options Exercisable, Weighted Average Exercise Price | $ / shares | $ 7.10 |
1.17 - 8.68 Exercise Prices | |
Schedule Of Share Based Compensation Stock Options Activity [Line Items] | |
Options Outstanding, Number | shares | 43,500 |
Options Outstanding, Weighted Average Remaining Life | 3 years 9 months 18 days |
Option Outstanding, Weighted Average Exercise Price | $ / shares | $ 4.66 |
Options Exercisable, Number | shares | 35,500 |
Options Exercisable, Weighted Average Exercise Price | $ / shares | $ 4.88 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Details) | 12 Months Ended |
Jun. 30, 2021shares | |
Employee Plan [Member] | |
Schedule Of Share Based Compensation Stock Options Activity [Line Items] | |
Options to purchase of common stock (Shares) | 300,000 |
Director Plan [Member] | |
Schedule Of Share Based Compensation Stock Options Activity [Line Items] | |
Options to purchase of common stock (Shares) | 75,000 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information - Summary of inventories and property plant and equipment (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Inventories | ||
Work in progress | $ 829,962 | $ 817,692 |
Component parts | 8,994,457 | 8,299,972 |
Finished goods | 1,800,461 | 1,660,158 |
Reserve for obsolete and excess inventory | (2,174,149) | (1,849,134) |
Inventories | 9,450,731 | 8,928,688 |
Property, plant and equipment | ||
Total property, plant and equipment at cost | 32,974,122 | 32,806,959 |
Less accumulated depreciation and amortization | (29,246,738) | (28,667,266) |
Property, Plant and Equipment, Net, Total | 3,727,384 | 4,139,693 |
Other accrued liabilities | ||
Accrued compensation expense | 1,323,901 | 1,257,332 |
Environmental remediation | 976,720 | 514,000 |
Other | 256,514 | 334,799 |
Accrued Liabilities, Current, Total | $ 2,557,135 | 2,106,131 |
Minimum | ||
Property, plant and equipment | ||
Estimated Useful Life | 3 years | |
Maximum | ||
Property, plant and equipment | ||
Estimated Useful Life | 35 years | |
Machinery and equipment | ||
Property, plant and equipment | ||
Total property, plant and equipment at cost | $ 18,998,928 | 18,831,765 |
Machinery and equipment | Minimum | ||
Property, plant and equipment | ||
Estimated Useful Life | 3 years | |
Machinery and equipment | Maximum | ||
Property, plant and equipment | ||
Estimated Useful Life | 10 years | |
Buildings | ||
Property, plant and equipment | ||
Total property, plant and equipment at cost | $ 13,055,628 | 13,055,628 |
Buildings | Minimum | ||
Property, plant and equipment | ||
Estimated Useful Life | 28 years | |
Buildings | Maximum | ||
Property, plant and equipment | ||
Estimated Useful Life | 35 years | |
Land and land improvements | ||
Property, plant and equipment | ||
Total property, plant and equipment at cost | $ 919,566 | $ 919,566 |
Land and land improvements | Minimum | ||
Property, plant and equipment | ||
Estimated Useful Life | 5 years | |
Land and land improvements | Maximum | ||
Property, plant and equipment | ||
Estimated Useful Life | 7 years |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Supplemental Balance Sheet Information | |||
Depreciation and amortization | $ 0.6 | $ 0.6 | $ 0.8 |
Commitments and Contingencies -
Commitments and Contingencies - Liability for future environmental expenditures (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Commitments and Contingencies | ||
Beginning Balance | $ 1,037,000 | |
Charges to income | 1,100,000 | $ 1,119,155 |
Remedial and investigatory spending | 60,280 | 82,155 |
Ending Balance | 976,720 | 1,037,000 |
Current, included in Other Liabilities | 976,720 | 514,000 |
Long-term environmental | 0 | 523,000 |
Total liability | $ 976,720 | $ 1,037,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) | Mar. 07, 2019 | Mar. 14, 2014 | Feb. 06, 2012 | Mar. 31, 2015 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 |
Commitments and Contingencies | |||||||
Environmental Remediation Expense | $ 1,100,000 | $ 1,119,155 | |||||
Payments for Environmental Liabilities | 60,280 | 82,155 | |||||
Total payments for environmental liabilities | 142,000 | ||||||
Loss contingency damages sought value | $ 492,000 | $ 469,000 | $ 696,000 | ||||
Gain (Loss) Related to Litigation Settlement | $ 750,000 | $ 0 | $ 0 | $ 750,000 |
Segment Information - Disaggreg
Segment Information - Disaggregation information of sales by region (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 7,018,000 | $ 7,967,000 | $ 11,104,000 | $ 10,190,000 | $ 8,511,000 | $ 8,097,000 | $ 7,310,000 | $ 7,976,000 | $ 36,279,476 | $ 31,894,262 | $ 31,381,521 |
Domestic United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 24,162,321 | 23,138,276 | 23,541,614 | ||||||||
Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 4,069,672 | 1,422,660 | 877,308 | ||||||||
Canada | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,310,440 | 829,901 | 758,145 | ||||||||
Latin America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 2,819,165 | 3,122,929 | 2,450,969 | ||||||||
Middle East | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,189,139 | 693,716 | 464,470 | ||||||||
Far East | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 2,727,508 | 2,686,206 | 3,259,905 | ||||||||
Other International | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 1,231 | $ 574 | $ 29,110 |
Segment Information - Disaggr_2
Segment Information - Disaggregation information of sales by product (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 7,018,000 | $ 7,967,000 | $ 11,104,000 | $ 10,190,000 | $ 8,511,000 | $ 8,097,000 | $ 7,310,000 | $ 7,976,000 | $ 36,279,476 | $ 31,894,262 | $ 31,381,521 |
Respiratory care products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 8,082,974 | 8,555,954 | 8,993,216 | ||||||||
Medical gas equipment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 15,943,246 | 15,282,732 | 16,031,109 | ||||||||
Emergency medical products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 12,253,256 | $ 8,055,576 | $ 6,357,196 |
Quarterly Financial Data (una_3
Quarterly Financial Data (unaudited) - Summary of quarterly financial data (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Quarterly Financial Data (unaudited) | |||||||||||
Net sales | $ 7,018,000 | $ 7,967,000 | $ 11,104,000 | $ 10,190,000 | $ 8,511,000 | $ 8,097,000 | $ 7,310,000 | $ 7,976,000 | $ 36,279,476 | $ 31,894,262 | $ 31,381,521 |
Gross profit | 1,188,000 | 1,435,000 | 2,612,000 | 1,874,000 | 1,378,000 | 1,586,000 | 1,347,000 | 1,260,000 | 7,109,496 | 5,570,616 | 5,038,627 |
Loss from operations | (745,000) | (381,000) | 734,000 | (135,000) | (638,000) | (305,000) | (1,512,000) | (607,000) | (526,822) | (3,062,179) | (2,774,022) |
Net income (loss) | $ 1,553,000 | $ (413,000) | $ 700,000 | $ (153,000) | $ (539,000) | $ (330,000) | $ (1,531,000) | $ (614,000) | $ 1,687,188 | $ (3,014,100) | $ (2,109,685) |
Basic income (loss) per share: | $ 0.39 | $ (0.10) | $ 0.17 | $ (0.04) | $ (0.14) | $ (0.08) | $ (0.38) | $ (0.15) | $ 0.42 | $ (0.75) | $ (0.53) |
Diluted income (loss) per share: | $ 0.39 | $ (0.10) | $ 0.17 | $ (0.04) | $ (0.14) | $ (0.08) | $ (0.38) | $ (0.15) | $ 0.42 | $ (0.75) | $ (0.53) |