Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Mar. 31, 2016 | Apr. 29, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | ALLIED HEALTHCARE PRODUCTS INC | |
Entity Central Index Key | 874,710 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | AHPI | |
Entity Common Stock, Shares Outstanding | 8,027,147 |
STATEMENT OF OPERATIONS
STATEMENT OF OPERATIONS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Net sales | $ 8,840,222 | $ 8,503,173 | $ 26,149,418 | $ 26,348,102 |
Cost of sales | 7,214,133 | 6,803,879 | 21,046,428 | 20,915,540 |
Gross profit | 1,626,089 | 1,699,294 | 5,102,990 | 5,432,562 |
Selling, general and administrative expenses | 2,388,566 | 2,188,457 | 7,187,936 | 6,654,245 |
Loss from operations | (762,477) | (489,163) | (2,084,946) | (1,221,683) |
Other (income) expenses: | ||||
Interest income | (521) | (532) | (2,423) | (2,086) |
Other, net | 22,510 | 14,661 | 64,172 | 36,619 |
Nonoperating Income | 21,989 | 14,129 | 61,749 | 34,533 |
Loss before benefit from income taxes | (784,466) | (503,292) | (2,146,695) | (1,256,216) |
Benefit from income taxes | 0 | 0 | (123,907) | 0 |
Net loss | $ (784,466) | $ (503,292) | $ (2,022,788) | $ (1,256,216) |
Basic loss per share (in dollars per share) | $ (0.10) | $ (0.06) | $ (0.25) | $ (0.16) |
Diluted loss per share (in dollars per share) | $ (0.10) | $ (0.06) | $ (0.25) | $ (0.16) |
Weighted average shares outstanding - basic (in shares) | 8,027,147 | 8,027,147 | 8,027,147 | 8,027,147 |
Weighted average shares outstanding - diluted (in shares) | 8,027,147 | 8,027,147 | 8,027,147 | 8,027,147 |
BALANCE SHEET
BALANCE SHEET - USD ($) | Mar. 31, 2016 | Jun. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 1,733,754 | $ 2,039,946 |
Accounts receivable, net of allowances of $170,000 | 4,143,502 | 3,574,674 |
Inventories, net | 9,042,289 | 9,190,911 |
Income tax receivable | 23,841 | 12,487 |
Other current assets | 316,665 | 328,756 |
Total current assets | 15,260,051 | 15,146,774 |
Property, plant and equipment, net | 7,023,072 | 7,821,206 |
Deferred income taxes | 1,966,056 | 1,889,872 |
Other assets, net | 89,952 | 131,615 |
Total assets | 24,339,131 | 24,989,467 |
Current liabilities: | ||
Accounts payable | 2,462,407 | 1,368,797 |
Other accrued liabilities | 2,483,767 | 2,159,566 |
Deferred income taxes | 839,039 | 767,907 |
Total current liabilities | $ 5,785,213 | $ 4,296,270 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock | $ 0 | $ 0 |
Common stock; $0.01 par value; 30,000,000 shares authorized; 10,427,878 shares issued at March 31, 2016 and June 30, 2015; 8,027,147 shares outstanding at March 31, 2016 and June 30, 2015 | 104,279 | 104,279 |
Additional paid-in capital | 48,430,179 | 48,546,670 |
Accumulated deficit | (8,999,752) | (6,976,964) |
Less treasury stock, at cost; 2,400,731 shares at March 31, 2016 and June 30, 2015 | (20,980,788) | (20,980,788) |
Total stockholders' equity | 18,553,918 | 20,693,197 |
Total liabilities and stockholders' equity | 24,339,131 | 24,989,467 |
Series A Preferred Stock [Member] | ||
Stockholders' equity: | ||
Preferred stock | $ 0 | $ 0 |
BALANCE SHEET _Parenthetical_
BALANCE SHEET [Parenthetical] - USD ($) | Mar. 31, 2016 | Jun. 30, 2015 |
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 | 10,427,878 | 10,427,878 |
Common stock, shares outstanding | 8,027,147 | 8,027,147 |
Treasury stock, at cost | 2,400,731 | 2,400,731 |
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 CASH FLOWS
STATEMENT OF CASH FLOWS - USD ($) | 9 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net loss | $ (2,022,788) | $ (1,256,216) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 939,095 | 988,564 |
Stock based compensation | 2,367 | 3,905 |
Provision for doubtful accounts and sales returns and allowances | 2,625 | 55,080 |
Deferred taxes | (123,907) | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (571,452) | (94,756) |
Inventories | 148,622 | 22,831 |
Income tax receivable | (11,354) | (11,917) |
Other current assets | 12,091 | 9,939 |
Accounts payable | 1,093,610 | 330,795 |
Other accrued liabilities | 324,199 | 553,922 |
Net cash provided by (used in) operating activities | (206,892) | 602,147 |
Cash flows from investing activities: | ||
Capital expenditures | (99,300) | (141,166) |
Net cash used in investing activities | (99,300) | (141,166) |
Net increase (decrease) in cash and cash equivalents | (306,192) | 460,981 |
Cash and cash equivalents at beginning of period | 2,039,946 | 1,366,762 |
Cash and cash equivalents at end of period | $ 1,733,754 | $ 1,827,743 |
Summary of Significant Accounti
Summary of Significant Accounting and Reporting Policies | 9 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 1. Summary of Significant Accounting and Reporting Policies The accompanying unaudited financial statements of Allied Healthcare Products, Inc. (the “Company”) have been prepared in accordance with the instructions for Form 10-Q and do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for a fair presentation, have been included. Operating results for any quarter are not necessarily indicative of the results for any other quarter or for the full year. These statements should be read in conjunction with the financial statements and notes to the financial statements thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2015. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU” or “Update”) No. 2014-09, “Revenue from Contracts with Customers.” This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. This ASU is effective for annual reporting periods beginning after December 15, 2016 and early adoption is not permitted. On July 9, 2015 the FASB voted to defer the effective date of this standard by one year to December 15, 2017 for the interim and annual reporting periods beginning after that date and permitted early adoption of the standard, but not before the original effective date of December 15, 2016. Companies may use either a full retrospective or modified retrospective approach to adopt this ASU. We are currently evaluating which transition approach to use and the full impact this ASU will have on our future financial statements. In August 2014, the FASB issued ASU No. 2014-15, to communicate amendments to FASB Account Standards Codification Subtopic 205-40, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” The ASU requires management to evaluate relevant conditions, events and certain management plans that are known or reasonably knowable as of the evaluation date when determining whether substantial doubt about an entity’s ability to continue as a going concern exists. Management will be required to make this evaluation for both annual and interim reporting periods. Management will have to make certain disclosures if it concludes that substantial doubt exists or when it plans to alleviate substantial doubt about the entity’s ability to continue as a going concern. The standard is effective for annual periods ending after December 15, 2016 and for interim reporting periods starting in 2017. Early adoption is permitted. We currently believe there will be no impact on our financial statement disclosures. In April 2015, the FASB issued ASU No. 2015-03, “Interest Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs”. This ASU requires companies to present debt issuance costs as a direct deduction from the carrying value of that debt liability. ASU 2015-03 does not impact the recognition and measurement guidance for debt issuance costs. This ASU was further amended by ASU No. 2015-15, “Interest-Imputation of Interest” to provide guidance with respect to debt issuance costs associated with line-of-credit arrangements. These ASUs are effective for annual reporting periods beginning after December 15, 2015 and early adoption is permitted. Accordingly, we will adopt this ASU on July 1, 2016. When implementing this ASU companies are required to use a retrospective approach and we are currently evaluating the impact to our future financial statements. In July 2015, the FASB issued ASU No. 2015-11 to simplify the subsequent measurement of inventory. Under this new standard, an entity should measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments in this guidance should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently evaluating the impact to our future financial statements. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740). This update requires that entities with a classified balance sheet present all deferred tax assets and liabilities as noncurrent. This update is effective for annual and interim periods for fiscal years beginning after December 15, 2016, which will require us to adopt these provisions in the first quarter of fiscal 2018. Early adoption is permitted for financial statements that have not been previously issued. This update can be applied on either a prospective or retrospective basis. We do not expect the adoption of this update to have a material impact on our financial In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” which requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. ASU 2016-02 is effective for the Company on July 1, 2020. The Company is currently evaluating the impact to our future financial statements. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606) Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” (“ASU 2016-08”). ASU 2016-08 further clarifies principal and agent relationships within ASU 2014-09. Similar to ASU 2014-09, the effective date will be the first quarter of fiscal year 2019 with early adoption permitted in the first quarter of fiscal year 2018. The Company is evaluating the impact that adoption of this new standard will have on its financial In March 2016, the FASB issued ASU 2016-09, “Compensation-Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting,” (“ASU 2016-09”). ASU 2016-09 is intended to simplify several aspects of accounting for share-based payment awards. The effective date will be the first quarter of fiscal year 2018, with early adoption permitted. The Company is evaluating the impact that adoption of this new standard will have on its financial In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing,” (“ASU 2016-10”). The amendments in ASU 2016-10 are expected to reduce the cost and complexity of applying the guidance on identifying promised goods or services in contracts with customers and to improve the operability and understandability of licensing implementation guidance related to the entity's intellectual property. Similar to ASU 2014-09, the effective date will be the first quarter of fiscal year 2019 with early adoption permitted in the first quarter of fiscal year 2018. The Company is evaluating the impact that adoption of this new standard will have on its financial The Company’s financial instruments consist of cash and cash equivalents, accounts receivable and accounts payable. The carrying amounts for cash and cash equivalents, accounts receivable and accounts payable approximate their fair value due to the short maturity of these instruments. |
Inventories
Inventories | 9 Months Ended |
Mar. 31, 2016 | |
Inventory, Net [Abstract] | |
Inventory Disclosure [Text Block] | 2. Inventories March 31, 2016 June 30, 2015 Work-in progress $ 616,878 $ 545,410 Component parts 7,575,251 7,721,413 Finished goods 2,310,280 2,397,044 Reserve for obsolete and excess inventory (1,460,120) (1,472,956) $ 9,042,289 $ 9,190,911 |
Earnings per share
Earnings per share | 9 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | 3. Earnings per share Basic earnings per share are based on the weighted average number of shares of all common stock outstanding during the period. Diluted earnings per share are based on the sum of the weighted average number of shares of common stock and common stock equivalents outstanding during the period. The number of basic and diluted shares outstanding for the three and nine months ended March 31, 2016 and 2015 were 8,027,147 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 4. 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. Stuyvesant Falls Power Litigation is currently 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 maintains 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 seeks as damages the value of electricity received by the Company without charge. The total value of electricity at issue in the litigation is not known with certainty and Niagara has alleged different amounts of damages. Niagara alleged in its Second Amended Verified Complaint, dated February 6, 2012, damages of approximately $ 469,000 492,000 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 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 intends to appeal this ruling and exercise all available options to enforce the free power covenants which have been in place for over 100 years. The appellate decision terminated the enforceability of the free power covenants as of March 31, 2016. The appellate decision did not order the Company to pay any amounts for power consumed prior to such date and the Company believes that it is not liable for any such damages as a result of the appellate decision. As of March 31, 2016, the Company has not recorded a provision for this matter. Dräger Patent Litigation Carbolime On October 25, 2013, the Dräger Plaintiffs filed a motion for preliminary injunction requesting that the Company be enjoined from selling certain models of its Litholyme and Carbolime cartridges during the pendency of the litigation. A hearing on the motion for preliminary injunction was held on February 7, 2014. On March 24, 2014, the Court ruled in Allied’s favor and denied Dräger’s motion for a preliminary injunction, stating among other things that Dräger had not carried its burden of showing that Allied had infringed Dräger’s patents. On June 20, 2014, the Company filed a motion seeking summary judgment based on the repair doctrine, which was the basis for the Court’s denial of Dräger’s motion for preliminary injunction. On March 27, 2015, the Court granted the Company’s motion for summary judgment of non-infringement. The Dräger Plaintiffs appealed the Court’s Order granting the motion for summary judgment on April 21, 2015. On October 13, 2015, the Dräger Plaintiffs filed a new patent infringement lawsuit (the “2015 Dräger Suit”) against the Company in the District of Delaware asserting that the Company infringes United States Reissue Patent No. RE45745, a reissue of the ‘633 Patent. The 2015 Dräger Suit alleged that the Company’s sales of the “Dräger Style” models of its Litholyme and Carbolime single-use carbon dioxide absorption cartridges infringed the claims of the reissued patent. On January 29, 2016, the Company and the Dräger Plaintiffs resolved the 2013 Dräger Suit and the 2015 Dräger Suit pursuant to a mutually satisfactory settlement agreement. The appeal of the 2013 Dräger Suit was dismissed on February 1, 2016 and the 2015 Dräger Suit was resolved by a consent judgment and permanent injunction on February 12, 2016. The Company was not required to make any payments under the settlement agreement, however, it discontinued the manufacture of Dräger Style models of its Litholyme and Carbolime single-use carbon dioxide absorption cartridges as of October 13, 2015. The Company does not believe that this settlement agreement will have a material effect on its business, financial position, results of operations or cash flows. Employment Contract The Company has entered into an employment contract with its chief executive officer with annual renewals. The contract includes termination without cause and change of control provisions, under which the chief executive officer is entitled to receive specified severance payments generally equal to two times ending annual salary if the Company terminates his employment without cause or he voluntarily terminates his employment with “good reason.” “Good Reason” generally includes changes in the scope of his duties or location of employment but also includes (i) the Company’s written election not to renew the Employment Agreement and (ii) certain voluntary resignations by the chief executive officer following a “Change of Control” as defined in the Agreement. |
Financing
Financing | 9 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 5. Financing As of March 31, 2016, the Company is party to a Loan and Security Agreement, dated November 17, 2009, with Enterprise Bank & Trust (the “Credit Agreement”) pursuant to which the Company obtained a secured revolving credit facility. Currently, the agreement provides for borrowing availability of up to $ 5,000,000 The Credit Agreement was amended on November 9, 2015 extending the maturity date to November 9, 2016. Subject to the conditions and limitations set forth in the Credit Agreement, the Credit Facility will be available on a revolving basis until it expires on November 9, 2016, at which time all amounts outstanding under the Credit Facility will be due and payable. Advances under the Credit Facility will be made pursuant to a Revolving Credit Note (as defined in the Credit Agreement) executed by the Company in favor of Enterprise Bank & Trust. Such advances will bear interest at a rate equal to 3.50 While the Credit Agreement provides for stated availability of $ 5.0 a new covenant was added requiring the Company to maintain minimum “liquidity” of $1.25 million. Liquidity is defined as the difference between cash and cash equivalents and the aggregate principal balance of borrowings under the Credit Agreement and is measured at the last day of each fiscal quarter, commencing on December 31, 2015. Based on the Company’s cash and cash equivalents as of March 31, 2016, Under the Credit Agreement, advances are generally subject to customary borrowing conditions. The Credit Agreement also contains covenants with which the Company must comply during the term of the Credit Facility. Among other things, such covenants restrict the Company’s ability to incur certain additional debt; make specified restricted payments, dividends and capital expenditures; authorize or issue capital stock; enter into certain transactions with affiliates; consolidate or merge with or acquire another business; sell certain of its assets or dissolve or wind up the Company. In addition, effective November 9, 2015, the Credit Agreement includes the minimum liquidity requirement described above. The Credit Agreement also contains certain events of default that are customary for financings of this type including, without limitation: the failure to pay principal, interest, fees or other amounts when due; the breach of specified representations or warranties contained in the loan documents; cross-default with certain other indebtedness of the Company; the entry of uninsured judgments that are not bonded or stayed; failure to comply with the observance or performance of specified agreements contained in the loan documents; commencement of bankruptcy or other insolvency proceedings; and the failure of any of the loan documents entered into in connection with the Credit Facility to be in full force and 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 4.00 The 30-day LIBOR rate was 0.43 At March 31, 2016, the Company had no aggregate indebtedness, including capital lease obligations, short-term debt and long term debt. The Company was in compliance with all of the covenants associated with the Credit Facility at March 31, 2016. |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 6. Income Taxes The Company accounts for income taxes under ASC Topic 740: “Income Taxes.” Under ASC 740, the deferred tax provision is determined using the liability method, whereby deferred tax assets and liabilities are recognized based upon temporary differences between the financial statement and income tax bases of assets and liabilities using presently enacted tax rates. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. In the three and nine months ended March 31, 2016 the Company recorded the tax benefit of losses incurred in the amount of approximately $ 233,000 660,000 233,000 660,000 10,000 35,000 0 124,000 192,000 471,000 1,920,000 1,271,000 |
Summary of Significant Accoun12
Summary of Significant Accounting and Reporting Policies (Policies) | 9 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited financial statements of Allied Healthcare Products, Inc. (the “Company”) have been prepared in accordance with the instructions for Form 10-Q and do not include all of the information and disclosures required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments considered necessary for a fair presentation, have been included. Operating results for any quarter are not necessarily indicative of the results for any other quarter or for the full year. These statements should be read in conjunction with the financial statements and notes to the financial statements thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2015. |
New Accounting Pronouncements, Policy [Policy Text Block] | In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU” or “Update”) No. 2014-09, “Revenue from Contracts with Customers.” This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. This ASU is effective for annual reporting periods beginning after December 15, 2016 and early adoption is not permitted. On July 9, 2015 the FASB voted to defer the effective date of this standard by one year to December 15, 2017 for the interim and annual reporting periods beginning after that date and permitted early adoption of the standard, but not before the original effective date of December 15, 2016. Companies may use either a full retrospective or modified retrospective approach to adopt this ASU. We are currently evaluating which transition approach to use and the full impact this ASU will have on our future financial statements. In August 2014, the FASB issued ASU No. 2014-15, to communicate amendments to FASB Account Standards Codification Subtopic 205-40, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” The ASU requires management to evaluate relevant conditions, events and certain management plans that are known or reasonably knowable as of the evaluation date when determining whether substantial doubt about an entity’s ability to continue as a going concern exists. Management will be required to make this evaluation for both annual and interim reporting periods. Management will have to make certain disclosures if it concludes that substantial doubt exists or when it plans to alleviate substantial doubt about the entity’s ability to continue as a going concern. The standard is effective for annual periods ending after December 15, 2016 and for interim reporting periods starting in 2017. Early adoption is permitted. We currently believe there will be no impact on our financial statement disclosures. In April 2015, the FASB issued ASU No. 2015-03, “Interest Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs”. This ASU requires companies to present debt issuance costs as a direct deduction from the carrying value of that debt liability. ASU 2015-03 does not impact the recognition and measurement guidance for debt issuance costs. This ASU was further amended by ASU No. 2015-15, “Interest-Imputation of Interest” to provide guidance with respect to debt issuance costs associated with line-of-credit arrangements. These ASUs are effective for annual reporting periods beginning after December 15, 2015 and early adoption is permitted. Accordingly, we will adopt this ASU on July 1, 2016. When implementing this ASU companies are required to use a retrospective approach and we are currently evaluating the impact to our future financial statements. In July 2015, the FASB issued ASU No. 2015-11 to simplify the subsequent measurement of inventory. Under this new standard, an entity should measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The amendments in this guidance should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently evaluating the impact to our future financial statements. In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740). This update requires that entities with a classified balance sheet present all deferred tax assets and liabilities as noncurrent. This update is effective for annual and interim periods for fiscal years beginning after December 15, 2016, which will require us to adopt these provisions in the first quarter of fiscal 2018. Early adoption is permitted for financial statements that have not been previously issued. This update can be applied on either a prospective or retrospective basis. We do not expect the adoption of this update to have a material impact on our financial In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” which requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. ASU 2016-02 is effective for the Company on July 1, 2020. The Company is currently evaluating the impact to our future financial statements. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers (Topic 606) Principal versus Agent Considerations (Reporting Revenue Gross versus Net),” (“ASU 2016-08”). ASU 2016-08 further clarifies principal and agent relationships within ASU 2014-09. Similar to ASU 2014-09, the effective date will be the first quarter of fiscal year 2019 with early adoption permitted in the first quarter of fiscal year 2018. The Company is evaluating the impact that adoption of this new standard will have on its financial In March 2016, the FASB issued ASU 2016-09, “Compensation-Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting,” (“ASU 2016-09”). ASU 2016-09 is intended to simplify several aspects of accounting for share-based payment awards. The effective date will be the first quarter of fiscal year 2018, with early adoption permitted. The Company is evaluating the impact that adoption of this new standard will have on its financial In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing,” (“ASU 2016-10”). The amendments in ASU 2016-10 are expected to reduce the cost and complexity of applying the guidance on identifying promised goods or services in contracts with customers and to improve the operability and understandability of licensing implementation guidance related to the entity's intellectual property. Similar to ASU 2014-09, the effective date will be the first quarter of fiscal year 2019 with early adoption permitted in the first quarter of fiscal year 2018. The Company is evaluating the impact that adoption of this new standard will have on its financial |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, accounts receivable and accounts payable. The carrying amounts for cash and cash equivalents, accounts receivable and accounts payable approximate their fair value due to the short maturity of these instruments. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Mar. 31, 2016 | |
Inventory, Net [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories are comprised as follows: March 31, 2016 June 30, 2015 Work-in progress $ 616,878 $ 545,410 Component parts 7,575,251 7,721,413 Finished goods 2,310,280 2,397,044 Reserve for obsolete and excess inventory (1,460,120) (1,472,956) $ 9,042,289 $ 9,190,911 |
Inventories (Details)
Inventories (Details) - USD ($) | Mar. 31, 2016 | Jun. 30, 2015 |
Inventory [Line Items] | ||
Work-in progress | $ 616,878 | $ 545,410 |
Component parts | 7,575,251 | 7,721,413 |
Finished goods | 2,310,280 | 2,397,044 |
Reserve for obsolete and excess inventory | (1,460,120) | (1,472,956) |
Inventory, Net | $ 9,042,289 | $ 9,190,911 |
Earnings per share (Details Tex
Earnings per share (Details Textual) - shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Line Items] | ||||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 8,027,147 | 8,027,147 | 8,027,147 | 8,027,147 |
Commitments and Contingencies (
Commitments and Contingencies (Details Textual) - USD ($) | Mar. 14, 2014 | Feb. 06, 2012 | Mar. 31, 2015 |
Commitments and Contingencies [Line Items] | |||
Loss Contingency, Damages Sought, Value | $ 492,000 | $ 469,000 | $ 696,000 |
Financing (Details Textual)
Financing (Details Textual) - USD ($) | 9 Months Ended | ||
Mar. 31, 2016 | Nov. 09, 2015 | Nov. 17, 2009 | |
Debt Instrument [Line Items] | |||
Line Of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 | $ 5,000,000 | |
Line of Credit Facility, Current Borrowing Capacity | $ 480,000 | ||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 3.50% | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | ||
Debt Instrument, Basis Spread on Variable Rate | 0.43% | ||
Line of Credit Facility, Covenant Terms | a new covenant was added requiring the Company to maintain minimum liquidity of $1.25 million. Liquidity is defined as the difference between cash and cash equivalents and the aggregate principal balance of borrowings under the Credit Agreement and is measured at the last day of each fiscal quarter, commencing on December 31, 2015. Based on the Companys cash and cash equivalents as of March 31, 2016, |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule Of Income Tax Disclosure [Line Items] | ||||
Deferred Other Tax Expense (Benefit) | $ 233,000 | $ 660,000 | ||
Deferred Tax Assets Valuation Allowance Addition Amount | 233,000 | 660,000 | ||
Deferred Tax Assets, Valuation Allowance | 1,920,000 | $ 1,271,000 | 1,920,000 | $ 1,271,000 |
Excess Tax Benefit From Shares Based Compensation Operating Activities | 0 | 124,000 | ||
Current Income Tax Expense (Benefit), Total | $ 192,000 | $ 471,000 | ||
Deferred Income Tax Expense Benefits | $ 10,000 | $ 35,000 |