Misonix (MSON) 10-Q 7 Nov 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2019	Nov. 04, 2019
Cover [Abstract]
Entity Registrant Name	MISONIX INC
Entity Central Index Key	0000880432
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2019
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding		15,355,310
Entity File Number	1-10986
Entity Interactive Data Current	Yes
Entity Incorporation State Country Code	NY

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2019	Jun. 30, 2019
Current assets:
Cash and cash equivalents	$ 12,860,578	$ 7,842,403
Accounts receivable, less allowance for doubtful accounts of $100,000 and $100,000, respectively	12,727,152	5,360,454
Inventories, net	8,907,354	7,353,562
Prepaid expenses and other current assets	999,710	835,044
Total current assets	35,494,794	21,391,463
Property, plant and equipment, net of accumulated amortization and depreciation of $10,973,868 and $10,545,810, respectively	5,316,691	4,198,721
Patents, net of accumulated amortization of $1,236,829 and $1,204,589, respectively	774,010	779,100
Goodwill	110,787,776	1,701,094
Contract assets	960,000	960,000
Intangible assets	20,400,000
Lease right of use and other assets	1,669,775	920,921
Total assets	175,403,046	29,951,299
Current liabilities:
Accounts payable	8,596,981	5,357,736
Accrued expenses and other current liabilities	4,820,229	2,488,514
Current portion of lease liabilities	448,158
Total current liabilities	13,865,368	7,846,250
Non current liabilities:
Notes payable	29,050,722
Lease right of use liabilities	872,341
Other non-current liabilities	401,000	401,000
Total liabilities	44,189,431	8,247,250
Commitments and contingencies
Shareholders' equity:
Common stock, $.0001 and $.01 par value-shares authorized 40,000,000; 15,353,185 and 9,646,728 shares issued and outstanding in each period	1,535	96,468
Additional paid-in capital	151,308,485	43,500,478
Accumulated deficit	(20,096,405)	(21,892,897)
Total shareholders' equity	131,213,615	21,704,049
Total liabilities and shareholders' equity	$ 175,403,046	$ 29,951,299

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Sep. 30, 2019	Jun. 30, 2019
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 100,000	$ 100,000
Accumulated amortization and depreciation	10,973,868	10,545,810
Patents, Accumulated amortization	$ 1,236,829	$ 1,204,589
Common stock, par value (in dollars per share)	$ .0001	$ 0.01
Common stock, authorized	40,000,000	40,000,000
Common stock, issued	15,353,185	9,646,728
Common stock, outstanding	15,353,185	9,646,728

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Revenues
Product	$ 11,145,922	$ 9,361,164
Total revenue	11,145,922	9,361,164
Cost of revenue	3,236,647	2,750,543
Gross profit	7,909,275	6,610,621
Operating expenses:
Selling expenses	5,200,582	4,735,005
General and administrative expenses	4,207,807	3,183,384
Research and development expenses	771,411	1,304,766
Total operating expenses	10,179,800	9,223,155
Loss from operations	(2,270,525)	(2,612,534)
Other income (expense):
Interest income	18,877	19,813
Interest expense	(36,097)
Other	(763)	(18,265)
Total other (expense) income	(17,983)	1,548
Loss from operations before income taxes	(2,288,508)	(2,610,986)
Income tax benefit	4,085,000
Net income (loss)	$ 1,796,492	$ (2,610,986)
Net income (loss) per share:
Basic	$ 0.18	$ (0.29)
Diluted	$ 0.17	$ (0.29)
Weighted average shares - Basic	9,686,402	9,100,123
Weighted average shares - Diluted	10,213,085	9,100,123

Condensed Consolidated Statem_2

Condensed Consolidated Statement of Shareholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Total
Balance at beginning at Jun. 30, 2018	$ 94,305	$ 39,772,973	$ (15,466,100)	$ 24,401,178
Balance at beginning (in shares) at Jun. 30, 2018	9,430,466
Cumulative effect of the adoption of ASC 606 - revenue recognition			960,000	960,000
Net Income (loss)			(2,610,986)	(2,610,986)
Proceeds from exercise of stock options	$ 517	415,230		415,747
Proceeds from exercise of stock options (in shares)	51,660
Stock-based compensation		1,004,498		1,004,498
Balance at ending at Sep. 30, 2018	$ 94,822	41,192,701	(17,117,086)	24,170,437
Balance at ending (in shares) at Sep. 30, 2018	9,482,126
Balance at beginning at Jun. 30, 2019	$ 96,468	43,500,478	(21,892,897)	21,704,049
Balance at beginning (in shares) at Jun. 30, 2019	9,646,728
Net Income (loss)			1,796,492	1,796,492
Proceeds from exercise of stock options	$ 33	10,803		10,836
Proceeds from exercise of stock options (in shares)	3,375
Change in par value of common stock	$ (151,997)	151,997
Change in par value of common stock (in shares)
Issuance of shares for acquisition of Solsys	$ 57,031	108,586,679		108,643,710
Issuance of shares for acquisition of Solsys (in shares)	5,703,082
Stock registration fees		(1,286,556)		(1,286,556)
Stock-based compensation		345,084		345,084
Balance at ending at Sep. 30, 2019	$ 1,535	$ 151,308,485	$ (20,096,405)	$ 131,213,615
Balance at ending (in shares) at Sep. 30, 2019	15,353,185

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Operating activities
Net income (loss)	$ 1,796,492	$ (2,610,986)
Adjustments to reconcile net loss to net cash and cash equivalents used in operating activities:
Depreciation and amortization	460,296	366,588
Bad debt expense
Stock-based compensation	345,084	1,004,498
Release of valuation allowance on deferred tax assets	(4,085,000)
Changes in operating assets and liabilities:
Accounts receivable	(1,885,808)	(289,722)
Inventories	(2,188,560)	(104,135)
Prepaid expenses and other current assets	29,200	28,333
Lease and other assets	(237,938)	49,282
Accounts payable, accrued expenses and other current liabilities	415,588	(178,663)
Net cash used in operating activities	(5,350,646)	(1,734,805)
Investing activities
Acquisition of property, plant and equipment	(112,379)	(287,506)
Additional patents	(27,149)	(50,080)
Cash from acquisition of Solsys Medical, LLC	5,525,601
Net cash provided by (used in) investing activities	5,386,073	(337,586)
Financing activities
Proceeds from notes payable	4,999,117
Stock registration fees	(27,205)
Proceeds from exercise of stock options	10,836	415,747
Net cash provided by financing activities	4,982,748	415,747
Net increase (decrease) in cash and cash equivalents	5,018,175	(1,656,644)
Cash and cash equivalents at beginning of year	7,842,403	10,979,455
Cash and cash equivalents at end of year	12,860,578	9,322,811
Cash paid for:
Interest	10,751
Income taxes	550	7,678
Transfer of inventory to property, plant and equipment for consignment of product	733,679	203,671
Stock issued for the acquisition of Solsys Medical, LLC	108,643,710
Stock registration fees not paid	$ 1,259,351

Basis of Presentation, Organiza

Basis of Presentation, Organization and Business and Summary of Significant Accounting Policies	3 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation, Organization and Business and Summary of Significant Accounting Policies	1. Basis of Presentation, Organization and Business and Summary of Significant Accounting Policies Basis of Presentation These condensed consolidated financial statements of Misonix, Inc. (“Misonix” or the “Company”) include the accounts of Misonix and its 100% owned subsidiaries. All significant intercompany balances and transactions have been eliminated. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these financial statements do not include all the information and footnotes required by U.S. GAAP for complete financial statements. As such, they should be read with reference to the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2019 (the “2019 Form 10-K”), which provides a more complete explanation of the Company’s accounting policies, financial position, operating results, business properties and other matters. In the opinion of management, these financial statements reflect all adjustments considered necessary for a fair statement of interim results. Organization and Business Misonix designs, manufactures, and markets minimally invasive surgical ultrasonic medical devices and markets, sells and distributes Theraskin, a biologically active human skin allograft used to support healing of wound which compliments Misonix’s ultrasonic medical devices. Misonix’s ultrasonic products are used for precise bone sculpting, removal of soft and hard tumors, and tissue debridement, primarily in the areas of neurosurgery, orthopedic surgery, plastic surgery, wound care and maxillo-facial surgery. The Company strives to help proprietary procedural solutions become the standard of care and enhance patient outcomes throughout the world. Misonix intends to accomplish this, in part, by utilizing its best in class surgical ultrasonic technology to change patient outcomes in Spine, Neuro and Wound Care. Misonix is currently developing proprietary procedural solutions around its recently FDA cleared Nexus Ultrasonic Generator. In addition, through its acquisition of Solsys Medical LLC (“Solsys”), Misonix completed its first procedural expansion of its ultrasonic surgical technology, adding the TheraSkin product, a leading cellular skin substitute indicated for all wounds, to its product portfolio. In the United States, Misonix sells its products through its direct sales force, in addition to a network of commissioned agents assisted by Misonix personnel. Outside of the United States, the Company generally sells to distributors who then resell the products to hospitals. The Misonix sales force operates as two groups, Surgical (Neuro and Spine Applications) and Wound. The Company operates with one business segment. Acquisition of Solsys Medical, LLC On September 27, 2019, the Company completed the acquisition (the “Solsys Acquisition”) of Solsys Medical, LLC (“Solsys”), a privately held regenerative medical company, in an all-stock transaction valued at approximately $109 million. Solsys is the exclusive marketer and distributor of TheraSkin® in the U.S., through an agreement with LifeNet. Solsys owns the TheraSkin® brand name, which was commercially launched in January 2010. TheraSkin is a biologically active human skin allograft which has all of the relevant characteristics of human skin, including living cells, growth factors, and a collagen matrix, needed to heal wounds. TheraSkin is derived from human skin tissue from consenting and highly screened donors and is manufactured by LifeNet. As a result of the Solsys Acquisition, Misonix, Inc. formerly known as New Misonix, Inc. (“New Misonix”) became the parent public-reporting company of the combined company; Misonix, Inc., now known as Misonix Opco, Inc., and Solsys became direct, wholly owned subsidiaries of New Misonix. The acquisition of Solsys is expected to broaden substantially Misonix’s addressable market through wound care solutions that are complementary to its existing products. After the completion of the Solsys Acquisition, Misonix shareholders immediately prior to the closing owned 64% of the combined entity, and Solsys unitholders owned 36%. The Company issued 5,703,082 shares in connection with this transaction. Transaction fees were approximately $4.4 million, of which $1.3 million were capitalized as additional paid in capital in connection with the registration of these shares. The Solsys assets, liabilities and results of operations are included in the Company’s financial statements from the acquisition date. The common stock of New Misonix was created with a par value per share of $.0001, whereas the par value of Misonix Opco, Inc. is $.01. Accordingly, the Company has recorded a reclassification of $151,997 between common stock and additional paid in capital during the three months ended September 30, 2019 to account for this change. High Intensity Focused Ultrasound Technology The Company sold its rights to the high intensity focused ultrasound technology to SonaCare Medical, LLC (“SonaCare”) in May 2010. The Company may receive up to approximately $5.8 million in payment for the sale. SonaCare is required to pay the Company 7% of the gross revenues received from its sales of the (i) prostate product in Europe and (ii) kidney and liver products worldwide, until the Company has received payments of $3 million, and thereafter 5% of the gross revenues, up to an aggregate payment of $5.8 million, all subject to a minimum annual royalty of $250,000. Cumulative payments through September 30, 2019 were $2,542,579. Currently, SonaCare is in default of its royalty payment due March 31, 2019. Although the Company is in discussions with SonaCare regarding this default, there can be no assurance that the payments will be received on a timely basis or at all. Due to this default, the Company has not recorded any income relating to this payment. Major Customers and Concentration of Credit Risk Included in revenues are sales to the Company distributor of Bone Scalpel in China of approximately $1.5 million and $1.5 million, for the three months ended September 30, 2019 and 2018, respectively. Accounts receivable from this customer were $2.0 million and $0.5 million at September 30, 2019 and June 30, 2019, respectively. At September 30, 2019 and June 30, 2019, the Company’s accounts receivable with customers outside the United States were approximately $4.2 million and $2.2 million, respectively, $0.6 million of which is over 90 days at September 30, 2019. Earnings Per Share Earnings per share (“EPS”) is calculated using the two class method, which allocates earnings among common stock and participating securities to calculate EPS when an entity’s capital structure includes either two or more classes of common stock or common stock and participating securities. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities. As such, unvested restricted stock awards of the Company are considered participating securities. The dilutive effect of options and their equivalents (including non-vested stock issued under stock based compensation plans), is computed using the “treasury” method. Basic income per common share is based on the weighted average number of common shares outstanding during the period. Diluted income per common share includes the dilutive effect of potential common shares outstanding. The following table sets forth the reconciliation of the Company’s basic and diluted earning per share calculation: For the three months ended September 30, 2019 2018 Numerator for basic earning per share: Net Income (loss) $ 1,796,492 $ (2,610,986 ) Less allocation of earnings to participating securities (38,725 ) - Net Income (loss) available to common shareholders $ 1,757,767 $ (2,610,986 ) Numerator for diluted earning per share: Net Income (loss) available to common shareholders $ 1,757,767 $ (2,610,986 ) Effect of dilutive options (36,769 ) - Net Income (loss) available to common shareholders $ 1,720,998 $ (2,610,986 ) Denominator for basic earnings per share 9,686,402 9,100,123 Dilutive effect of stock options 526,683 - Diluted weighted average shares outstanding 10,213,085 9,100,123 Diluted EPS for the three months ended September 30, 2018 as presented is the same as basic EPS as the inclusion of the effect of common share equivalents then outstanding would be anti-dilutive. Accordingly, excluded from the calculation of diluted EPS are the dilutive effect of options to purchase 632,301 shares of common stock for the three months ended September 30, 2018. Also excluded from the calculation of earnings per share for the three months ended September 30, 2019 and 2018 are the unvested restricted stock awards that were issued in December 2016. Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instrument (“ASU 2016-13”). ASU 2016-13 replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 is effective for SEC filers for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted only as of annual reporting periods beginning after December 15, 2018. Management is currently assessing the impact ASU 2016-13 will have on the Company. There are no other recently issued accounting pronouncements that are expected to have a material effect on the Company’s financial position, results of operations or cash flows. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), and has since issued amendments thereto, related to the accounting for leases (collectively referred to as “ASC 842”). ASC 842 establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The Company adopted ASC 842 on July 1, 2019. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. Entities have the option to continue to apply historical accounting under Topic 840, including its disclosure requirements, in comparative periods presented in the year of adoption. An entity that elects this option will recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption instead of the earliest period presented. The Company adopted the optional ASC 842 transition provisions beginning on July 1, 2019. Accordingly, the Company will continue to apply Topic 840 prior to July 1, 2019, including Topic 840 disclosure requirements, in the comparative periods presented. The Company elected the package of practical expedients for all its leases that commenced before July 1, 2019. The Company has evaluated its real estate lease, its copier leases and its generator rental agreements. The adoption of ASC 842 did not materially impact the Company’s balance sheet and had an immaterial impact on its results of operations. Based on the Company’s current agreements, upon the adoption of ASC 842 on July 1, 2019, the Company recorded an operating lease liability of approximately $436,000 and corresponding ROU assets based on the present value of the remaining minimum rental payments associated with the Company’s leases. As the Company’s leases do not provide an implicit rate, nor is one readily available, the Company used its incremental borrowing rate based on information available at July 1, 2019 to determine the present value of its future minimum rental payments. Critical Accounting Policies and Use of Estimates Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and judgments that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions are used for but not limited to establishing the allowance for doubtful accounts, valuation of inventory, depreciation, asset impairment evaluations and establishing deferred tax assets and related valuation allowances, and stock-based compensation. Actual results could differ from those estimates.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Sep. 30, 2019
Revenue Recognition and Deferred Revenue [Abstract]
Revenue Recognition	2. Revenue Recognition On July 1, 2018 the Company adopted Accounting Standards Codification (“ASC”) Topic 606 “Revenue from Contracts with Customers, as amended” (“ASC Topic 606”), using the modified retrospective method applied to those contracts which were not completed as of the adoption date. The reported results for the year ended June 30, 2019 reflect the application of Topic 606 guidance while the reported results for fiscal year 2018 were prepared under the guidance of ASC Topic 605, “Revenue Recognition”. The adoption of ASC Topic 606 resulted in a cumulative prior period adjustment in the amount of $960,000 related to the Company’s License and Exclusive Manufacturing Agreement described below, but the remainder of the adoption did not have a material impact on the timing or amount of revenue recognized. The Company has made the following accounting policy elections and elected to use certain practical expedients, as permitted by the FASB, in applying ASC Topic 606: 1) the Company accounts for amounts collected from customers for sales and other taxes net of related amounts remitted to tax authorities; 2) the Company expenses costs to obtain a contract as they are incurred if the expected period of benefit, and therefore the amortization period, is one year or less; 3) the Company accounts for shipping and handling activities that occur after control transfers to the customer as a fulfillment cost rather than an additional promised service and these fulfillment costs fall within selling, general and administrative expenses; 4) the Company does not assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract with the customer; 5) the Company will utilize the right-to-invoice practical expedient with regard to the recognition of revenue upon the purchase of consumable goods in connection with a product placement/consignment arrangement. Recognition of Revenue The Company satisfies performance obligations either over time, or at a point in time, upon which control transfers to the customer. Revenue derived from the shipping and billing of product is recorded upon shipment, when transfer of control occurs for products shipped freight on board (“F.O.B.”) shipping point. Products shipped F.O.B. destination point are recorded as revenue when received at the point of destination when the transfer of control is completed. Shipments under agreements with distributors are not subject to return, and payment for these shipments is not contingent on sales by the distributor. Accordingly, the Company recognizes revenue on shipments to distributors in the same manner as with other customers under the ship and bill process. Revenue derived from the rental of equipment is recorded on a monthly basis over the term of the lease. Shipments of consumable products to these rental customers is recorded as orders are received and shipments are made F.O.B. destination or F.O.B. shipping point. Revenue derived from consignment agreements is earned as consumables product orders are fulfilled. Therefore, revenue is recognized as shipments are made F.O B shipping point or F.O.B destination. Revenue derived from service and maintenance contracts is recognized evenly over the life of the service agreement as the services are performed. The Company generates revenue from the sale and leasing of medical equipment, from the sale of consumable products used with medical equipment in surgical procedures as well as through product licensing arrangements, and from the sale of Theraskin, a regenerative skin product. In the United States, the Company’s products are marketed primarily through a hybrid sales approach that includes direct sales representatives, managed by regional sales managers, along with independent distributors. Outside the United States, the Company sells BoneScalpel and SonaStar to specialty distributors who purchase products to resell to their clinical customer bases. The Company sells to all major markets in the Americas, Europe, Middle East, Asia Pacific, and Africa. Revenue is disaggregated from contracts between products under ship and bill arrangements and licensing agreements, and by geography, which the Company believes best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by economic factors. The Company also provides an immaterial amount of service revenue that is recognized over time, but not stated separately because the amounts are immaterial. The following table disaggregates the Company’s product revenue by classification and geographic location: For the three months ended September 30, 2019 2018 Total Surgical $ 9,611,298 $ 8,140,395 Wound 1,534,624 1,220,769 Total $ 11,145,922 $ 9,361,164 Domestic: Surgical $ 5,115,022 $ 4,241,463 Wound 1,429,886 1,163,055 Total $ 6,544,908 $ 5,404,518 International: Surgical $ 4,496,276 $ 3,898,932 Wound 104,738 57,714 Total $ 4,601,014 $ 3,956,646 Beginning with the fiscal first quarter of 2020, Misonix adopted certain changes in the quarterly financial results related to the presentation of its sales performance supplemental data to more accurately reflect the Company’s two separate sales channels - its surgical and wound product divisions. The surgical division includes the Company's Nexus, BoneScalpel and SonaStar product lines, and the Wound division includes the Company's SonicOne and TheraSkin product lines. Going forward, the Company will present total, domestic and international sales performance supplemental data for its surgical and wound divisions. As a result, the Company will no longer present total, domestic and international sales performance supplemental data based on its consumables and equipment products. Contract Assets The timing of revenue recognition, customer invoicing, and collections produces accounts receivable and contract assets on the Company’s consolidated balance sheet. Contract liabilities are not material to the operations of the Company as of September 30, 2019. The Company invoices in accordance with contract payment terms. Invoices to customers represent an unconditional right of the Company to receive consideration. When revenue is recognized in advance of customer invoicing a contract asset is recorded. Unpaid customer invoices are reflected as accounts receivable. The Company has established a contract asset in conjunction with the Company’s Licensing & Manufacturing Agreement based upon its assessment of the most likely variable consideration to be received by the Company as a result of the royalty provisions in the contract. The asset is recorded as a long-term asset as the Company believes that payment will be made on this asset in a duration exceeding one year. Contract assets as of September 30, 2019 and June 30, 2019 were $960,000, respectively.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Sep. 30, 2019
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	3. Fair Value of Financial Instruments The Company follows a three-level fair value hierarchy that prioritizes the inputs to measure fair value of financial instruments. This hierarchy requires entities to maximize the use of “observable inputs” and minimize the use of “unobservable inputs.” The three levels of inputs used to measure fair value are as follows: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Significant unobservable inputs that reflect assumptions that market participants would use in pricing an asset or liability. At September 30, 2019 and June 30, 2019, all of the Company’s cash and cash equivalents, trade accounts receivable and trade accounts payable were short term in nature, and their carrying amounts approximate fair value.

Inventories

Inventories	3 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
Inventories	4. Inventories Inventories are summarized as follows: September 30, June 30, 2019 2019 Raw material $ 4,879,729 $ 4,830,207 Work-in-process 279,413 224,252 Finished goods 4,192,470 2,743,361 9,351,612 7,797,820 Less valuation reserve (444,258 ) (444,258 ) $ 8,907,354 $ 7,353,562

Property, Plant and Equipment

Property, Plant and Equipment	3 Months Ended
	Sep. 30, 2019
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	5. Property, Plant and Equipment Depreciation and amortization of property, plant and equipment was $428,000 and $333,000 for the three months ended September 30, 2019 and 2018, respectively. Inventory items used for demonstration purposes, rental or on consignment are included in property, plant and equipment and are depreciated using the straight-line method over estimated useful lives of 3 to 5 years. Depreciation of generators that are consigned to customers is expensed over a 5-year period, and depreciation is charged to selling expenses.

Goodwill

Goodwill	3 Months Ended
	Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	6. Goodwill Under accounting guidelines, goodwill is not amortized, but must be tested for impairment annually, or more frequently if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below the carrying amount. The Company reviews goodwill for impairment annually and whenever events or changes indicate that the carrying value of an asset may not be recoverable. These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of significant assets or products. Application of these impairment tests requires significant judgments, including estimation of cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the Company’s business, the useful lives over which cash flows will occur and determination of the Company’s weighted average cost of capital. The Company primarily utilizes the Company’s market capitalization and a discounted cash flow model in determining the fair value, which consists of Level 3 inputs. Changes in the projected cash flows and discount rate estimates and assumptions underlying the valuation of goodwill could materially affect the determination of fair value at acquisition or during subsequent periods when tested for impairment. The Company completed its annual goodwill impairment tests for fiscal 2019 and 2018 as of June 30 of each year. There were no triggering events identified during the quarter ended September 30, 2019. Goodwill increased by $109,086,682 at September 30, 2019 as a result of the Solsys Acquisition.

Patents

Patents	3 Months Ended
	Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Patents	7. Patents The costs of acquiring or processing patents are capitalized at cost. These amounts are being amortized using the straight-line method over the estimated useful lives of the underlying assets, which is approximately 17 years. Patents, net of accumulated amortization, totaled $774,010 and $773,668 at September 30, 2019 and June 30, 2019, respectively. Amortization expense for the three months ended September 30, 2019 and 2018 was $32,000 and $34,000, respectively. The following is a schedule of estimated future patent amortization expenses by fiscal year as of September 30, 2019: 2020 $ 90,509 2021 115,414 2022 77,931 2023 76,840 2024 69,085 Thereafter 344,231 $ 774,010

Intangible Assets

Intangible Assets	3 Months Ended
	Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	8. Intangible Assets In connection with the Solsys Acquisition, the Company acquired intangible assets primarily consisting of customer relationships, trade names and non-competition agreements. The table below summarizes the intangible assets acquired: September 30, June 30, Amortization 2019 2019 Period Customer relationships $ 7,400,000 - 15 years Trade names 12,800,000 - 15 years Non-competition agreements 200,000 - 1 year Total $ 20,400,000 $ - The following is a schedule of estimated future intangible asset amortization expense by fiscal year as of September 30, 2019: 2020 $ 1,160,000 2021 1,396,667 2022 1,346,667 2023 1,346,667 2024 1,346,667 Thereafter 13,803,332 $ 20,400,000

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	3 Months Ended
	Sep. 30, 2019
Payables and Accruals [Abstract]
Accrued Expenses and Other Current Liabilities	9. Accrued Expenses and Other Current Liabilities The following summarizes accrued expenses and other current liabilities: September 30, June 30, 2019 2019 Accrued payroll, payroll taxes and vacation $ 700,143 $ 488,339 Accrued bonus 450,000 622,115 Accrued commissions 1,505,408 662,007 Professional fees 279,990 181,313 Vendor, tax and other accruals 1,884,688 534,740 $ 4,820,229 $ 2,488,514

Stock-Based Compensation Plans

Stock-Based Compensation Plans	3 Months Ended
	Sep. 30, 2019
Equity [Abstract]
Stock-Based Compensation Plans	10. Stock-Based Compensation Plans Stock Option Awards For the three months ended September 30, 2019 and 2018, the compensation cost relating to stock option awards that has been charged against income for the Company’s stock option plans, excluding the compensation cost for restricted stock, was $221,335 and $278,121 respectively. As of September 30, 2019, there was $2,141,145 of total unrecognized compensation cost related to non-vested share-based compensation arrangements to be recognized over a weighted-average period of 2.5 years. Stock options typically expire 10 years from the date of grant and vest over service periods, which typically are 4 years. All options are granted at fair market value, as defined in the applicable plans. The fair value of each option award was estimated on the date of grant using the Black-Scholes option valuation model that uses the assumptions noted in the following table. The expected volatility represents the historical price changes of the Company’s stock over a period equal to that of the expected term of the option. The Company uses the simplified method for determining the option term. The risk-free rate was based on the U.S. Treasury yield curve in effect at the time of grant. The expected dividend yield is based upon historical and projected dividends. The Company has historically not paid dividends, and is not expected to do so in the near term. There were options to purchase 0 and 137,000 shares granted during the three months ended September 30, 2019 and 2018, respectively. The fair value was estimated based on the weighted average assumptions of: For the three months ended September 30, 2019 2018 Risk-free interest rates - 2.87 % Expected option life in years - 6.25 Expected stock price volatility - 55.39 % Expected dividend yield - 0 % A summary of option activity under the Company’s equity plans as of September 30, 2019, and changes during the three months ended September 30, 2019 is presented below: Options Weighted Average Aggregate Outstanding Exercise Intrinsic Shares Price Value Vested and exercisable at June 30, 2019 1,163,856 $ 10.28 $ 17,617,231 Granted - - Exercised (3,375 ) 3.21 Forfeited (37,500 ) 13.40 Expired - - Outstanding as of September 30, 2019 1,122,981 $ 10.20 $ 11,117,267 Vested and exercisable at September 30, 2019 731,231 $ 8.81 $ 8,255,617 The total fair value of stock options vested during the three months ended September 30, 2019 was $510,776. The number and weighted-average grant-date fair value of non-vested stock options at September 30, 2019 was 391,750 and $7.05, respectively. The number and weighted-average grant-date fair value of stock options which vested during the three months ended September 30, 2019 was 77,876 and $6.56, respectively. Restricted Stock Awards On December 15, 2016, the Company issued 400,000 shares of restricted stock to its Chief Executive Officer. These awards vest over a period of up to five years, subject to meeting certain service, performance and market conditions. These awards were valued at approximately $3.6 million. Compensation expense recorded in the three months ended September 30, 2019 and 2018 related to these awards was $123,749 and $726,377 respectively. As of September 30, 2019, there was approximately $1,009,994 of total unrecognized compensation cost related to non-vested restricted stock awards to be recognized over a weighted-average period of 2.07 years. The awards contain a combination of vesting terms that include time vesting, performance vesting relating to revenue achievement, and market vesting related to obtaining certain levels of Company stock prices. At September 30, 2019, the Company has estimated that it is probable that the performance conditions will be met. The awards were valued using a Monte Carlo valuation model using a stock price at the date of grant of $9.60, a term of 3 to 5 years, a risk free interest rate of 1.6% to 2.1% and a volatility factor of 66.5%. As of September 30, 2019, 186,600 shares from this set of awards have vested.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	11. Commitments and Contingencies Leases The Company has entered into operating leases primarily for real estate and office copiers. These leases generally have terms that range from 1 year to 6 years. These operating leases are included in “Other current assets” and “Other non-current assets” on the Company’s September 30, 2019 consolidated balance sheet, and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make lease payments are included in “Accrued expenses and other liabilities” and “Other non-current liabilities” on the Company’s September 30, 2019 consolidated balance sheet. Based on the present value of the lease payments for the remaining lease term of the Company’s existing leases, the Company recognized right-of-use assets of approximately $0.5 million and lease liabilities for operating leases of approximately $0.5 million on July 1, 2019. Operating lease right-of-use assets and liabilities commencing after January 1, 2019 are recognized at their commencement date based on the present value of lease payments over the lease term. As of September 30, 2019, total right-of-use assets and operating lease liabilities were approximately $1.3 million and $1.3 million, respectively. The Company has entered into various short-term operating leases with an initial term of twelve months or less. These leases are not recorded on the Company’s balance sheet. All operating lease expense is recognized on a straight-line basis over the lease term. During the three months ended September 30, 2019, the Company recognized approximately $0.1 million in total lease costs, which was composed of $0.1 million in operating lease costs for right-of-use assets and $-0- in short-term lease costs related to short-term operating leases. Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments. Information related to the Company’s right-of-use assets and related lease liabilities were as follows: Three months ended September 30, Cash paid for operating lease liabilities $ 93,420 Right of use assets obtained in exchange for new operating lease obligations $ 1,301,009 As of September 30, Weighted-average remaining lease term 4.0 years Weighted-average discount rate 10.5% Maturities of lease liabilities as of September 30, 2019 were as follows: 2020 $ 413,893 2021 348,252 2020 247,359 2023 254,199 2024 254,794 Thereafter 109,493 1,627,990 Less imputed interest (322,662 ) Total lease liabilities $ 1,305,328 Former Chinese Distributor - Litigation On March 23, 2017, the Company’s former distributor in China, Cicel (Beijing) Science & Technology Co., Ltd., filed a lawsuit against the Company and certain officers and directors of the Company in the United States District Court for the Eastern District of New York, alleging that the Company improperly terminated its contract with the former distributor. The complaint sought various remedies, including compensatory and punitive damages, specific performance and preliminary and post judgment injunctive relief, and asserted various causes of action, including breach of contract, unfair competition, tortious interference with contract, fraudulent inducement, and conversion. On October 7, 2017, the court granted the Company’s motion to dismiss all of the tort claims asserted against it, and also granted the individual defendants’ motion to dismiss all claims asserted against them. The only claim currently remaining in the case is for breach of contract against the Company; the plaintiff has moved to amend its complaint to add tort claims, which the Company has opposed. The court has not yet ruled on the motion to amend. The Company believes it has various legal and factual defenses to the allegations in the complaint, and intends to defend the action vigorously. Fact discovery in the case is ongoing, and there is no trial date currently set.

Financing Arrangements

Financing Arrangements	3 Months Ended
	Sep. 30, 2019
Notes Payable, Noncurrent [Abstract]
Financing Arrangements	12. Financing Arrangements Note payable consists of the following as of June 30, 2019 and December 31, 2018: September 30, June 30, 2019 2019 Revolving credit facility $ 3,750,000 $ - Notes payable 25,300,722 - $ 29,050,722 $ - Following are the scheduled maturities of the notes payable for the twelve-month period ending June 30: 2020 $ - 2021 6,250,000 2022 5,000,000 2023 17,800,722 2024 - $ 29,050,722 Revolving Credit Facility Through the acquisition of Solsys, the Company became party to a $5,000,000 revolving line of credit loan agreement (LOC) with Silicon Valley Bank, originally effective January 22, 2019. Borrowings on the line are limited to 85% of eligible Solsys accounts receivable as defined in the LOC agreement. Interest is calculated at .25% over prime or 5.25%, whichever is higher, and is automatically paid on the last day of each month. The LOC calls for a final payment fee of 1.50% of the line, due upon termination or maturity of the LOC. The LOC also calls for an unused facility fee of .25% of average unused portion of the line paid quarterly. The Company is required to meet certain financial covenants related to the LOC. The line of credit matures January 22, 2021. Notes Payable On September 27, 2019, Misonix entered into an amended and restated credit agreement (“SWK Credit Agreement”) with SWK Holdings Corporation pursuant to a commitment letter whereby SWK (a) consented to the transactions contemplated by the Solsys merger agreement and (b) agreed to provide additional financing to Misonix. The SWK credit Facility provides for $25,095,761 in financing and matures on June 30, 2023. The interest rate applicable to the loans made under the SWK Credit Agreement will vary between LIBOR plus 7.00% and LIBOR plus 10.25%, depending on Misonix’s consolidated EBITDA or market capitalization. Interest is payable in cash. Principal payments are capped at $1,250,000 per quarter and commence during the quarter ended March 31, 2021. The Company may not prepay the loans under the SWK Credit Agreement until September 27, 2020. On and after September 27, 2020, the Company may prepay the loans subject to a prepayment fee of (a) $800,000 if such prepayment is made prior to September 27, 2021, (b) 1.00% of the amount prepaid if such prepayment is on or after September 27, 2021 and prior to September 27, 2022 and (c) $0 if such prepayment is made on or after September 27, 2022. The SWK Credit Agreement contains financial covenants requiring (a) a minimum amount of unencumbered liquid assets that will vary based on the Company’s market capitalization, (b) minimum annual revenue of $50 million (determined on a quarterly basis for the prior four fiscal quarters) and (c) minimum EBITDA at levels that will vary based on the Company’s market capitalization. The obligations of the Company under the SWK Credit Agreement are guaranteed by the Company and are secured by a lien on substantially all of its assets.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Sep. 30, 2019
Related Party Transactions [Abstract]
Related Party Transactions	13. Related Party Transactions Minoan Medical (Pty) Ltd. (“Minoan”) (formerly Applied BioSurgical) is an independent distributor for the Company in South Africa. The chief executive officer of Minoan is also the brother of Stavros G. Vizirgianakis, the Company’s Chief Executive Officer. Set forth below is a table showing the Company’s net revenues for the three months ended September 30, 2019 and 2018 and accounts receivable at September 30, 2019 and 2018 with Minoan: For the three months as of and ended September 30, 2019 2018 Sales $ 625,134 $ 296,881 Accounts receivable $ 426,142 $ 236,478

Income Taxes

Income Taxes	3 Months Ended
	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	14. Income Taxes For the three months ended September 30, 2019 and 2018, the Company recorded an income tax expense benefit, as follows: For the three months ended September 30, 2019 2018 Income tax benefit $ (515,000 ) $ (427,000 ) Income tax expense (benefit) - Solsys Acquisition (4,085,000 ) - Valuation allowance on deferred tax assets 515,000 427,000 Net income tax benefit $ (4,085,000 ) $ - For the three months ended September 30, 2019 and 2018, the Company recorded an income tax benefit of $4.1 million and $0, respectively. For the three months ended September 30, 2019 and 2018, the effective rate of 178% and 0%, respectively, varied from the U.S. federal statutory rate primarily due to the recording of a full valuation allowance on the deferred tax assets, and the business combination related to the Solsys Acquisition. The acquisition of Solsys resulted in the recognition of deferred tax liabilities of approximately $4.1 million, related primarily to intangible assets. Prior to the business combination, the Company had a full valuation allowance on its deferred tax assets. The deferred tax liabilities generated from the business combination is netted against the Company’s pre-existing deferred tax assets. Consequently, this resulted in a release of $4.1 million of the pre-existing valuation allowance against the deferred tax assets and corresponding deferred tax benefit. Valuation Allowance on Deferred Tax Assets Deferred tax assets refer to assets that are attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets in essence represent future savings of taxes that would otherwise be paid in cash. The realization of the deferred tax assets is dependent upon the generation of sufficient future taxable income, including capital gains. If it is determined that the deferred tax assets cannot be realized, a valuation allowance must be established, with a corresponding charge to net income. In accordance with ASC Topic 740, the Company establishes valuation allowances for deferred tax assets that, in its judgment are not more likely-than-not realizable. The guidance requires entities to evaluate all available positive and negative evidence, including cumulative results in recent periods, weighted based on its objectivity, in determining whether its deferred tax assets are more likely than not realizable. The Company regularly assesses its ability to realize its deferred tax assets. The Company is in a three-year cumulative loss position at June 30, 2019, and it expects to be in a cumulative pretax loss position as of June 30, 2020. Management evaluated available positive evidence, including the continued growth of the Company’s revenues and gross profit margins, the completion of the development of its next generation Nexus product, its SonaStar technology license to its Chinese partner and the reduction in investigative and professional fees, along with available negative evidence, including the Company’s continuing investment in building a direct sales force and payment of transaction fees for the Company’s Solsys acquisition. After weighing both the positive and negative evidence, management concluded that the Company’s deferred tax assets are not more likely-than-not realizable. Accordingly, the Company recorded an increase in the valuation allowance for the three months ended September 30, 2019 of $515,000 against its remaining deferred tax assets at September 30, 2019. As a result of the Solsys Acquisition, the Company recorded a valuation allowance release of $4.1 million. The remaining cumulative valuation allowance at September 30, 2019 is $1.8 million. The Company will continue to assess its ability to utilize its net operating loss carryforwards, and will reverse this valuation allowance when sufficient evidence is achieved to allow the realizability of such deferred tax assets. As of September 30, 2019 and June 30, 2019, the Company had no material unrecognized tax benefits or accrued interest and penalties.

Segment Reporting

Segment Reporting	3 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Segment Reporting	15. Segment Reporting Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated on a regular basis by the chief operating decision-maker (“CODM”) in deciding how to allocate resources to an individual segment and in assessing performance of the segment. The Company has concluded that its Chief Executive Officer is the CODM as he is the ultimate decision maker for key operating decisions, determining the allocation of resources and assessing the financial performance of the Company. These decisions, allocations and assessments are performed by the CODM using consolidated financial information. Consolidated financial information is utilized by the CODM as the Company’s current product offering primarily consists of minimally invasive therapeutic ultrasonic medical devices. The Company’s products are relatively consistent and manufacturing is centralized and consistent across product offerings. Based on these factors, key operating decisions and resource allocations are made by the CODM using consolidated financial data and as such the Company has concluded that it operates as one segment. Worldwide revenue for the Company’s product revenue is categorized as follows: For the three months ended September 30 2019 2018 Product revenue: Domestic $ 6,544,908 $ 5,404,518 International 4,601,014 3,956,646 Total $ 11,145,922 $ 9,361,164 Substantially all of the Company’s long-lived assets are located in the United States.

Acquisitions

Acquisitions	3 Months Ended
	Sep. 30, 2019
Business Combinations [Abstract]
Acquisitions	16. Acquisitions Solsys Medical, LLC On September 27, 2019, the Company completed the Solsys Acquisition. The purchase was approximately $108.6 million, representing 5,703,082 shares of Misonix common stock, valued at $19.05 per share. In addition, business transaction costs incurred in connection with the acquisition of $4.4 million, of which $1.8 million were incurred in the quarter ended September 30, 2019. These fees were charged to general and administrative expenses on the Statement of Operations. In addition, approximately $1.3 million of the transaction costs were capitalized to additional paid in capital, in connection with the registration of the underlying stock issued in the transaction. The transaction was accounted for using the acquisition method of accounting in accordance with FASB ASC Topic 805. US GAAP requires that one of the companies in the transactions be designated as the acquirer for accounting purposes based on the evidence available. Misonix was treated as the acquiring entity for accounting purposes. The preliminary Solsys purchase price allocation as of September 27, 2019, is shown in the following table: Cash $ 5,525,601 Accounts receivable 5,480,890 Inventory 98,911 Prepaid expenses 193,866 Property and equipment 699,969 Lease assets 946,617 Customer relationships 7,400,000 Trade names 12,800,000 Non-competition agreements 200,000 Accounts payable and other current liabilities (4,794,878 ) Lease liabilities (858,111 ) Deferred tax liability (4,085,000 ) Notes payable (24,050,837 ) Total identifiable net assets (442,972 ) Goodwill 109,086,682 Total consideration $ 108,643,710 The fair values of the Solsys assets and liabilities are provisional and were determined based on preliminary estimates and assumptions that management believes are reasonable. The preliminary purchase price allocation is subject to further refinement and may require significant adjustments to arrive at the final purchase price allocation. These adjustments will primarily relate to certain short-term assets, intangible assets, and certain liabilities. The final determination of the fair value of certain assets and liabilities will be completed as soon as the necessary information is available, including the completion of a valuation of the tangible and intangible assets, but no later than one year from the acquisition date. The goodwill from the acquisition of Solsys, which is fully deductible for tax purposes, consists largely of synergies and economies of scale expected from combining the operations of Solsys and the Company’s existing business. The estimate of fair value of the Solsys identifiable intangible assets was determined primarily using the “income approach,” which requires a forecast of all of the expected future cash flows either through the use of the multi-period excess earnings method or the relief-from-royalty method. Some of the more significant assumptions inherent in the development of intangible asset values include: the amount and timing of projected future cash flows, the discount rate selected to measure the risks inherent in the future cash flows, the assessment of the intangible asset’s life cycle, as well as other factors. The following table summarizes key information underlying intangible assets related to the Solsys acquisition: Asset Amortization Value Period Customer relationships $ 7,400,000 15 years Trade names 12,800,000 15 years Non-competition agreements 200,000 1 year Total $ 20,400,000 Solsys’ operations were consolidated with those of the Company for the period September 27, 2019 through September 30, 2019. For that period, revenue and operating loss were $0.3 million and ($0.1) million, respectively. Had the acquisition occurred as of the beginning of each of fiscal 2018, revenue and net loss, on a pro forma basis excluding transaction fees and the one time tax benefit, for the combined company would have been as follows: For the three months ended September 30, 2019 2018 Revenue $ 19,490,717 $ 14,789,313 Net income (loss) $ (4,601,195) $ (4,866,467 )

Basis of Presentation, Organi_2

Basis of Presentation, Organization and Business and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation These condensed consolidated financial statements of Misonix, Inc. (“Misonix” or the “Company”) include the accounts of Misonix and its 100% owned subsidiaries. All significant intercompany balances and transactions have been eliminated. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these financial statements do not include all the information and footnotes required by U.S. GAAP for complete financial statements. As such, they should be read with reference to the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2019 (the “2019 Form 10-K”), which provides a more complete explanation of the Company’s accounting policies, financial position, operating results, business properties and other matters. In the opinion of management, these financial statements reflect all adjustments considered necessary for a fair statement of interim results.
Organization and Business	Organization and Business Misonix designs, manufactures, and markets minimally invasive surgical ultrasonic medical devices and markets, sells and distributes Theraskin, is a biologically active human skin allograft used to support healing of wounds. Misonix’s ultrasonic products are used for precise bone sculpting, removal of soft and hard tumors, and tissue debridement, primarily in the areas of neurosurgery, orthopedic surgery, plastic surgery, wound care and maxillo-facial surgery. The Company strives to help proprietary procedural solutions become the standard of care and enhance patient outcomes throughout the world. Misonix intends to accomplish this, in part, by utilizing its best in class surgical ultrasonic technology to change patient outcomes in Spine, Neuro and Wound Care. Misonix is currently developing proprietary procedural solutions around its recently FDA cleared Nexus Ultrasonic Generator. In addition, through its acquisition of Solsys Medical LLC (“Solsys”), Misonix completed its first procedural expansion of its ultrasonic surgical technology, adding the TheraSkin product, a leading cellular skin substitute indicated for all wounds, to its product portfolio. In the United States, Misonix sells its products through its direct sales force, in addition to a network of commissioned agents assisted by Misonix personnel. Outside of the United States, the Company generally sells to distributors who then resell the products to hospitals. The Misonix sales force operates as two groups, Surgical (Neuro and Spine Applications) and Wound. The Company operates with one business segment.
Acquisition of Solsys Medical, LLC	Acquisition of Solsys Medical, LLC On September 27, 2019, the Company completed the acquisition (the “Solsys Acquisition”) of Solsys Medical, LLC (“Solsys”), a privately held regenerative medical company, in an all-stock transaction valued at approximately $109 million. Solsys is the exclusive marketer and distributor of TheraSkin® in the U.S., through an agreement with LifeNet. Solsys owns the TheraSkin® brand name, which was commercially launched in January 2010. TheraSkin is a biologically active human skin allograft which has all of the relevant characteristics of human skin, including living cells, growth factors, and a collagen matrix, needed to heal wounds. TheraSkin is derived from human skin tissue from consenting and highly screened donors and is manufactured by LifeNet. As a result of the Solsys Acquisition, Misonix, Inc. formerly known as New Misonix, Inc. (“New Misonix”) became the parent public-reporting company of the combined company; Misonix, Inc., now known as Misonix Opco, Inc., and Solsys became direct, wholly owned subsidiaries of New Misonix. The acquisition of Solsys is expected to broaden substantially Misonix’s addressable market through wound care solutions that are complementary to its existing products. After the completion of the Solsys Acquisition, Misonix shareholders immediately prior to the closing owned 64% of the combined entity, and Solsys unitholders owned 36%. The Company issued 5,703,082 shares in connection with this transaction. Transaction fees were approximately $4.4 million, of which $1.3 million were capitalized as additional paid in capital in connection with the registration of these shares. The Solsys assets, liabilities and results of operations are included in the Company’s financial statements from the acquisition date. The common stock of New Misonix was created with a par value per share of $.0001, whereas the par value of Misonix Opco, Inc. is $.01. Accordingly, the Company has recorded a reclassification of $151,997 between common stock and additional paid in capital during the three months ended September 30, 2019 to account for this change.
High Intensity Focused Ultrasound Technology	High Intensity Focused Ultrasound Technology The Company sold its rights to the high intensity focused ultrasound technology to SonaCare Medical, LLC (“SonaCare”) in May 2010. The Company may receive up to approximately $5.8 million in payment for the sale. SonaCare is required to pay the Company 7% of the gross revenues received from its sales of the (i) prostate product in Europe and (ii) kidney and liver products worldwide, until the Company has received payments of $3 million, and thereafter 5% of the gross revenues, up to an aggregate payment of $5.8 million, all subject to a minimum annual royalty of $250,000. Cumulative payments through September 30, 2019 were $2,542,579. Currently, SonaCare is in default of its royalty payment due March 31, 2019. Although the Company is in discussions with SonaCare regarding this default, there can be no assurance that the payments will be received on a timely basis or at all. Due to this default, the Company has not recorded any income relating to this payment.
Major Customers and Concentration of Credit Risk	Major Customers and Concentration of Credit Risk Included in revenues are sales to the Company distributor of Bone Scalpel in China of approximately $1.5 million and $1.5 million, for the three months ended September 30, 2019 and 2018, respectively. Accounts receivable from this customer were $2.0 million and $0.5 million at September 30, 2019 and June 30, 2019, respectively. At September 30, 2019 and June 30, 2019, the Company’s accounts receivable with customers outside the United States were approximately $4.2 million and $2.2 million, respectively, $0.6 million of which is over 90 days at September 30, 2019.
Earnings Per Share	Earnings Per Share Earnings per share (“EPS”) is calculated using the two class method, which allocates earnings among common stock and participating securities to calculate EPS when an entity’s capital structure includes either two or more classes of common stock or common stock and participating securities. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities. As such, unvested restricted stock awards of the Company are considered participating securities. The dilutive effect of options and their equivalents (including non-vested stock issued under stock based compensation plans), is computed using the “treasury” method. Basic income per common share is based on the weighted average number of common shares outstanding during the period. Diluted income per common share includes the dilutive effect of potential common shares outstanding. The following table sets forth the reconciliation of the Company’s basic and diluted earning per share calculation: For the three months ended September 30, 2019 2018 Numerator for basic earning per share: Net Income (loss) $ 1,796,492 $ (2,610,986 ) Less allocation of earnings to participating securities (38,725 ) - Net Income (loss) available to common shareholders $ 1,757,767 $ (2,610,986 ) Numerator for diluted earning per share: Net Income (loss) available to common shareholders $ 1,757,767 $ (2,610,986 ) Effect of dilutive options (36,769 ) - Net Income (loss) available to common shareholders $ 1,720,998 $ (2,610,986 ) Denominator for basic earnings per share 9,686,402 9,100,123 Dilutive effect of stock options 526,683 - Diluted weighted average shares outstanding 10,213,085 9,100,123 Diluted EPS for the three months ended September 30, 2018 as presented is the same as basic EPS as the inclusion of the effect of common share equivalents then outstanding would be anti-dilutive. Accordingly, excluded from the calculation of diluted EPS are the dilutive effect of options to purchase 632,301 shares of common stock for the three months ended September 30, 2018. Also excluded from the calculation of earnings per share for the three months ended September 30, 2019 and 2018 are the unvested restricted stock awards that were issued in December 2016.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instrument (“ASU 2016-13”). ASU 2016-13 replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 is effective for SEC filers for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted only as of annual reporting periods beginning after December 15, 2018. Management is currently assessing the impact ASU 2016-13 will have on the Company. There are no other recently issued accounting pronouncements that are expected to have a material effect on the Company’s financial position, results of operations or cash flows.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), and has since issued amendments thereto, related to the accounting for leases (collectively referred to as “ASC 842”). ASC 842 establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The Company adopted ASC 842 on July 1, 2019. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. Entities have the option to continue to apply historical accounting under Topic 840, including its disclosure requirements, in comparative periods presented in the year of adoption. An entity that elects this option will recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption instead of the earliest period presented. The Company adopted the optional ASC 842 transition provisions beginning on July 1, 2019. Accordingly, the Company will continue to apply Topic 840 prior to July 1, 2019, including Topic 840 disclosure requirements, in the comparative periods presented. The Company elected the package of practical expedients for all its leases that commenced before July 1, 2019. The Company has evaluated its real estate lease, its copier leases and its generator rental agreements. The adoption of ASC 842 did not materially impact the Company’s balance sheet and had an immaterial impact on its results of operations. Based on the Company’s current agreements, upon the adoption of ASC 842 on July 1, 2019, the Company recorded an operating lease liability of approximately $436,000 and corresponding ROU assets based on the present value of the remaining minimum rental payments associated with the Company’s leases. As the Company’s leases do not provide an implicit rate, nor is one readily available, the Company used its incremental borrowing rate based on information available at July 1, 2019 to determine the present value of its future minimum rental payments.
Critical Accounting Policies and Use of Estimates	Critical Accounting Policies and Use of Estimates Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and judgments that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions are used for but not limited to establishing the allowance for doubtful accounts, valuation of inventory, depreciation, asset impairment evaluations and establishing deferred tax assets and related valuation allowances, and stock-based compensation. Actual results could differ from those estimates.

Basis of Presentation, Organi_3

Basis of Presentation, Organization and Business and Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Schedule of weighted average shares outstanding and diluted weighted average shares outstanding	The following table sets forth the reconciliation of the Company’s basic and diluted earning per share calculation: For the three months ended September 30, 2019 2018 Numerator for basic earning per share: Net Income (loss) $ 1,796,492 $ (2,610,986 ) Less allocation of earnings to participating securities (38,725 ) - Net Income (loss) available to common shareholders $ 1,757,767 $ (2,610,986 ) Numerator for diluted earning per share: Net Income (loss) available to common shareholders $ 1,757,767 $ (2,610,986 ) Effect of dilutive options (36,769 ) - Net Income (loss) available to common shareholders $ 1,720,998 $ (2,610,986 ) Denominator for basic earnings per share 9,686,402 9,100,123 Dilutive effect of stock options 526,683 - Diluted weighted average shares outstanding 10,213,085 9,100,123

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
Schedule of inventories	Inventories are summarized as follows: September 30, June 30, 2019 2019 Raw material $ 4,879,729 $ 4,830,207 Work-in-process 279,413 224,252 Finished goods 4,192,470 2,743,361 9,351,612 7,797,820 Less valuation reserve (444,258 ) (444,258 ) $ 8,907,354 $ 7,353,562

Patents (Tables)

Patents (Tables)	3 Months Ended
	Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of estimated future patent amortization expenses	The following is a schedule of estimated future patent amortization expenses by fiscal year as of September 30, 2019: 2020 $ 90,509 2021 115,414 2022 77,931 2023 76,840 2024 69,085 Thereafter 344,231 $ 774,010

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible assets acquired	In connection with the Solsys Acquisition, the Company acquired intangible assets primarily consisting of customer relationships, trade names and non-competition agreements. The table below summarizes the intangible assets acquired: September 30, June 30, Amortization 2019 2019 Period Customer relationships $ 7,400,000 - 15 years Trade names 12,800,000 - 15 years Non-competition agreements 200,000 - 1 year Total $ 20,400,000 $ -
Schedule of estimated future intangible asset amortization expense	The following is a schedule of estimated future intangible asset amortization expense by fiscal year as of September 30, 2019: 2020 $ 1,160,000 2021 1,396,667 2022 1,346,667 2023 1,346,667 2024 1,346,667 Thereafter 13,803,332 $ 20,400,000

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	3 Months Ended
	Sep. 30, 2019
Payables and Accruals [Abstract]
Schedule of accrued expenses and other current liabilities	The following summarizes accrued expenses and other current liabilities: September 30, June 30, 2019 2019 Accrued payroll, payroll taxes and vacation $ 700,143 $ 488,339 Accrued bonus 450,000 622,115 Accrued commissions 1,505,408 662,007 Professional fees 279,990 181,313 Vendor, tax and other accruals 1,884,688 534,740 $ 4,820,229 $ 2,488,514

Stock-Based Compensation Plans

Stock-Based Compensation Plans (Tables)	3 Months Ended
	Sep. 30, 2019
Equity [Abstract]
Schedule of weighted average fair value at date of grant for options	There were options to purchase 0 and 137,000 shares granted during the three months ended September 30, 2019 and 2018, respectively. The fair value was estimated based on the weighted average assumptions of: For the three months ended September 30, 2019 2018 Risk-free interest rates - 2.87 % Expected option life in years - 6.25 Expected stock price volatility - 55.39 % Expected dividend yield - 0 %
Schedule of option activity	A summary of option activity under the Company’s equity plans as of September 30, 2019, and changes during the three months ended September 30, 2019 is presented below: Options Weighted Average Aggregate Outstanding Exercise Intrinsic Shares Price Value Vested and exercisable at June 30, 2019 1,163,856 $ 10.28 $ 17,617,231 Granted - - Exercised (3,375 ) 3.21 Forfeited (37,500 ) 13.40 Expired - - Outstanding as of September 30, 2019 1,122,981 $ 10.20 $ 11,117,267 Vested and exercisable at September 30, 2019 731,231 $ 8.81 $ 8,255,617

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Schedule of right-of-use assets and related lease liabilities	Information related to the Company’s right-of-use assets and related lease liabilities were as follows: Three months ended September 30, Cash paid for operating lease liabilities $ 93,420 Right of use assets obtained in exchange for new operating lease obligations $ 1,301,009 As of September 30, Weighted-average remaining lease term 4.0 years Weighted-average discount rate 10.5%
Schedule of future minimum lease payments	Maturities of lease liabilities as of September 30, 2019 were as follows: 2020 $ 413,893 2021 348,252 2020 247,359 2023 254,199 2024 254,794 Thereafter 109,493 1,627,990 Less imputed interest (322,662 ) Total lease liabilities $ 1,305,328

Financing Arrangements (Tables)

Financing Arrangements (Tables)	3 Months Ended
	Sep. 30, 2019
Notes Payable, Noncurrent [Abstract]
Schedule of note payable	Note payable consists of the following as of June 30, 2019 and December 31, 2018: September 30, June 30, 2019 2019 Revolving credit facility $ 3,750,000 $ - Notes payable 25,300,722 - $ 29,050,722 $ -
Scheduled maturities of the notes payable	Following are the scheduled maturities of the notes payable for the twelve-month period ending June 30: 2020 $ - 2021 6,250,000 2022 5,000,000 2023 17,800,722 2024 - $ 29,050,722

Related Party Transactions (Tab

Related Party Transactions (Tables)	3 Months Ended
	Sep. 30, 2019
Related Party Transactions [Abstract]
Schedule of net sales and accounts receivables	Set forth below is a table showing the Company’s net revenues for the three months ended September 30, 2019 and 2018 and accounts receivable at September 30, 2019 and 2018 with Minoan: For the three months as of and ended September 30, 2019 2018 Sales $ 625,134 $ 296,881 Accounts receivable $ 426,142 $ 236,478

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Schedule of significant components of the income tax expense benefit	For the three months ended September 30, 2019 and 2018, the Company recorded an income tax expense benefit, as follows: For the three months ended September 30, 2019 2018 Income tax benefit $ (515,000 ) $ (427,000 ) Income tax expense (benefit) - Solsys Acquisition (4,085,000 ) - Valuation allowance on deferred tax assets 515,000 427,000 Net income tax benefit $ (4,085,000 ) $ -

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Sep. 30, 2019
Segment Reporting [Abstract]
Schedule of revenue	Worldwide revenue for the Company’s product revenue is categorized as follows: For the three months ended September 30 2019 2018 Product revenue: Domestic $ 6,544,908 $ 5,404,518 International 4,601,014 3,956,646 Total $ 11,145,922 $ 9,361,164

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
	Sep. 30, 2019
Business Combinations [Abstract]
Schedule of preliminary Solsys purchase price allocation	The preliminary Solsys purchase price allocation as of September 27, 2019, is shown in the following table: Cash $ 5,525,601 Accounts receivable 5,480,890 Inventory 98,911 Prepaid expenses 193,866 Property and equipment 699,969 Lease assets 946,617 Customer relationships 7,400,000 Trade names 12,800,000 Non-competition agreements 200,000 Accounts payable and other current liabilities (4,794,878 ) Lease liabilities (858,111 ) Deferred tax liability (4,085,000 ) Notes payable (24,050,837 ) Total identifiable net assets (442,972 ) Goodwill 109,086,682 Total consideration $ 108,643,710
Schedule of intangible assets	The following table summarizes key information underlying intangible assets related to the Solsys acquisition: Asset Amortization Value Period Customer relationships $ 7,400,000 15 years Trade names 12,800,000 15 years Non-competition agreements 200,000 1 year Total $ 20,400,000
Schedule of revenue and net loss, on a pro forma basis	Had the acquisition occurred as of the beginning of each of fiscal 2018, revenue and net loss, on a pro forma basis excluding transaction fees and the one time tax benefit, for the combined company would have been as follows: For the three months ended September 30, 2019 2018 Revenue $ 19,490,717 $ 14,789,313 Net income (loss) $ (4,601,195) $ (4,866,467 )

Basis of Presentation, Organi_4

Basis of Presentation, Organization and Business and Summary of Significant Accounting Policies (Details) - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Numerator for basic earning per share:
Net Income (loss)	$ 1,796,492	$ (2,610,986)
Less allocation of earnings to participating securities	(38,725)
Net Income (loss) available to common shareholders	1,757,767	(2,610,986)
Numerator for diluted earning per share:
Net Income (loss) available to common shareholders	1,757,767	(2,610,986)
Effect of dilutive options	(36,769)
Net Income (loss) available to common shareholders	$ 1,720,998	$ (2,610,986)
Denominator for basic earnings per share	9,686,402	9,100,123
Dilutive effect of stock options	526,683
Diluted weighted average shares outstanding	10,213,085	9,100,123

Basis of Presentation, Organi_5

Basis of Presentation, Organization and Business and Summary of Significant Accounting Policies (Details Narrative)	Sep. 27, 2019USD ($)shares	May 10, 2010USD ($)	Sep. 30, 2019USD ($)Number$ / shares	Sep. 30, 2018USD ($)shares	Jun. 30, 2019USD ($)$ / shares
Ownership percentage			100.00%
Number of operating segment | Number			1
Revenues			$ 11,145,922	$ 9,361,164
Percentage of Ownership before Transaction	64.00%
Stock transaction value	$ 108,600,000
Transaction fees			4,400,000
Additional paid in capital	$ 1,300,000		$ 1,300,000
Common stock, par value (in dollars per share) | $ / shares			$ .0001		$ 0.01
Reclassification amount of common stock and additional paid in capital			$ 151,997
Misonix Opco, Inc. [Member]
Common stock, par value (in dollars per share) | $ / shares			$ .01
New Misonix, Inc. [Member]
Common stock, par value (in dollars per share) | $ / shares			$ .0001
International [Member]
Revenues			$ 4,601,014	$ 3,956,646
Accounts receivable			4,200,000		$ 2,200,000
International [Member] | Over 90 Days [Member]
Accounts receivable			600,000
Stock Options [Member]
Excluded from the calculation of Diluted EPS (in shares) | shares				632,301
Solsys Medical, LLC [Member]
Percentage of Ownership before Transaction	36.00%
Stock transaction value	$ 109,000,000
Number of shares issued | shares	5,703,082
SonaCare Medical, LLC ("SonaCare") [Member]
Proceeds from sale of intangible assets		$ 5,800,000	2,542,579
Earn-out percentage		7.00%
Earn-out percentage		5.00%
Proceeds from sale of intangible assets		$ 5,800,000
Annual Royalty		$ 250,000
Distribution Rights [Member] | Bone Scapel Generators [Member]
Revenues			1,500,000	$ 1,500,000
Accounts receivable			$ 2,000,000		$ 500,000

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Total	$ 11,145,922	$ 9,361,164
International [Member]
Total	4,601,014	3,956,646
US [Member]
Total	6,544,908	5,404,518
Surgical [Member]
Total	9,611,298	8,140,395
Surgical [Member] | International [Member]
Total	4,496,276	3,898,932
Surgical [Member] | US [Member]
Total	5,115,022	4,241,463
Wound [Member]
Total	1,534,624	1,220,769
Wound [Member] | International [Member]
Total	104,738	57,714
Wound [Member] | US [Member]
Total	$ 1,429,886	$ 1,163,055

Revenue Recognition (Details Na

Revenue Recognition (Details Narrative) - USD ($)	Jul. 02, 2018	Sep. 30, 2019	Jun. 30, 2019
Contract assets		$ 960,000	$ 960,000
License And Exclusive Manufacturing Agreement [Member]
Cumulative prior period adjustment	$ 960,000

Inventories (Details)

Inventories (Details) - USD ($)	Sep. 30, 2019	Jun. 30, 2019
Inventory Disclosure [Abstract]
Raw material	$ 4,830,207	$ 4,830,207
Work-in-process	279,413	224,252
Finished goods	4,192,470	2,743,361
Inventory, gross	9,351,612	7,797,820
Less valuation reserve	(444,258)	(444,258)
Inventory, net	$ 8,907,354	$ 7,353,562

Property, Plant and Equipment (

Property, Plant and Equipment (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Depreciation and amortization	$ 428,000	$ 333,000
Inventory [Member] | Customer [Member]
Estimated useful life	5 years
Inventory [Member] | Maximum [Member]
Estimated useful life	5 years
Inventory [Member] | Minimum [Member]
Estimated useful life	3 years

Goodwill (Details Narrative)

Goodwill (Details Narrative) - USD ($)	Sep. 30, 2019	Sep. 27, 2019	Jun. 30, 2019
Goodwill	$ 110,787,776	$ 109,086,682	$ 1,701,094
Acquisition-related Costs [Member]
Goodwill	$ 109,086,682

Patents (Details)

Patents (Details) - USD ($)	Sep. 30, 2019	Jun. 30, 2019
Finite-Lived Intangible Assets [Line Items]
2020	$ 1,160,000
2021	1,396,667
2022	1,346,667
2023	1,346,667
2024	1,346,667
Thereafter	13,803,332
Total	774,010	$ 779,100
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
2020	90,509
2021	115,414
2022	77,931
2023	76,840
2024	69,085
Thereafter	344,231
Total	$ 774,010	$ 773,668

Patents (Details Narrative)

Patents (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019
Patents totaled	$ 774,010		$ 779,100
Patents [Member]
Intangible assets estimated useful lives	17 years
Patents totaled	$ 774,010		$ 773,668
Amortization expense	$ 32,000	$ 34,000

Intangible Assets (Details)

Intangible Assets (Details) - USD ($)	3 Months Ended
	Sep. 30, 2019	Jun. 30, 2019
Total	$ 20,400,000
Customer Relationships [Member]
Total
Customer Relationships [Member] | Solsys Medical, LLC [Member]
Total	$ 7,400,000
Amortization period	15 years
Trade Names [Member]
Total
Trade Names [Member] | Solsys Medical, LLC [Member]
Total	$ 12,800,000
Amortization period	15 years
Noncompete Agreements [Member]
Total
Noncompete Agreements [Member] | Solsys Medical, LLC [Member]
Total	$ 200,000
Amortization period	1 year

Intangible Assets (Details 1)

Intangible Assets (Details 1) - USD ($)	Sep. 30, 2019	Jun. 30, 2019
Intangible Assets Details 1Abstract
2020	$ 1,160,000
2021	1,396,667
2022	1,346,667
2023	1,346,667
2024	1,346,667
Thereafter	13,803,332
Total	$ 20,400,000

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities (Details) - USD ($)	Sep. 30, 2019	Jun. 30, 2019
Payables and Accruals [Abstract]
Accrued payroll, payroll taxes and vacation	$ 700,143	$ 488,339
Accrued bonus	450,000	622,115
Accrued commissions	1,505,408	662,007
Professional fees	279,990	181,313
Vendor, tax and other accruals	1,884,688	534,740
Accrued expenses and other current liabilities	$ 4,820,229	$ 2,488,514

Stock-Based Compensation Plan_2

Stock-Based Compensation Plans (Details )	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Equity [Abstract]
Risk-free interest rates		2.87%
Expected option life in years		6 years 3 months
Expected stock price volatility		55.39%
Expected dividend yield		0.00%

Stock-Based Compensation Plan_3

Stock-Based Compensation Plans (Details 1) - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Outstanding Shares [Roll Forward]
Outstanding at beginning	1,163,856
Granted		137,000
Excercised	(3,375)
Forfeited	(37,500)
Expired
Outstanding at ending	1,122,981
Vested and exercisable at ending	731,231
Weighted Average Exercise Price [Roll Forward]
Outstanding at beginning	$ 10.28
Granted
Excercised	3.21
Forfeited	13.40
Expired
Outstanding at ending	10.20
Vested and exercisable at ending	$ 8.81
Aggregate Intrinsic Value [Roll Forward]
Outstanding at beginning	$ 17,617,231
Outstanding at ending	11,117,267
Vested and exercisable at ending	$ 8,255,617

Stock-Based Compensation Plan_4

Stock-Based Compensation Plans (Details Narrative) - USD ($)	Dec. 15, 2016	Sep. 30, 2019	Sep. 30, 2018
Compensation cost		$ 345,084	$ 1,004,498
Unrecognized compensation cost		$ 2,141,145
Non-vested share-based compensation weighted-average period		2 years 6 months
Number of shares granted			137,000
Fair value of shares vested		$ 510,776
Number of non-vested stock options			391,750
Weighted-average grant-date fair value of non-vested stock options (in dollars per share)			$ 7.05
Number of shares vested		77,876
Expected term			6 years 3 months
Expected volatility rate			55.39%
Restricted Stock [Member]
Unrecognized compensation cost related to non-vested restricted stock awards		$ 1,009,994
Period of recognition		2 years 25 days
Stock price		$ 9.60
Risk free interest rate, minimum		1.60%
Risk free interest rate, maximum		2.10%
Expected volatility rate		66.50%
Restricted Stock [Member] | Chief Executive Officer [Member]
Compensation cost		$ 123,749	$ 726,377
Option vesting period	5 years
Fair value of shares vested	$ 3,600,000
Number of stock issued	400,000
Stock Options [Member]
Compensation cost		$ 221,335	$ 278,121
Option Expiration period		10 years
Option vesting period		4 years
Number of non-vested stock options		77,876
Weighted-average grant-date fair value of vested stock options		$ 6.56
Minimum [Member] | Restricted Stock [Member]
Expected term		3 years
Maximum [Member] | Restricted Stock [Member]
Expected term		5 years

Commitments and Contingencies_2

Commitments and Contingencies (Details)	3 Months Ended
	Sep. 30, 2019USD ($)
Commitments and Contingencies Disclosure [Abstract]
Cash paid for operating lease liabilities	$ 93,420
Right of use assets obtained in exchange for new operating lease obligations	$ 1,301,009

Commitments and Contingencies_3

Commitments and Contingencies (Details 1)	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Weighted-average remaining lease term	4 years
Weighted-average discount rate	10.50%

Commitments and Contingencies_4

Commitments and Contingencies (Details 2) - USD ($)	Sep. 30, 2019	Jul. 02, 2019
Commitments and Contingencies Disclosure [Abstract]
2020	$ 413,893
2021	348,252
2020	247,359
2023	254,199
2024	254,794
Thereafter	109,493
total	1,627,990
Less imputed interest	(322,662)
Total lease liabilities	$ 1,305,328	$ 500,000

Commitments and Contingencies_5

Commitments and Contingencies (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2019	Jul. 02, 2019	Jun. 30, 2019
Right-of-use assets	$ 1,669,775	$ 500,000	$ 920,921
Operating leases liabilities	$ 1,305,328	$ 500,000
Description of method used	straight-line
Lease description	Short-term operating leases with an initial term of twelve months or less.
Operating lease cost	$ 100,000
Short-term lease costs	$ 0
Maximum [Member] | Real Estate And Office Member [Member]
Operating lease term	6 years
Minimum [Member] | Real Estate And Office Member [Member]
Operating lease term	1 year

Financing Arrangements (Details

Financing Arrangements (Details) - USD ($)	Sep. 30, 2019	Jun. 30, 2019
Notes payable	$ 25,300,722
Total	29,050,722
Revolving Credit Facility [Member]
Total	$ 3,750,000

Financing Arrangements (Detai_2

Financing Arrangements (Details 1) - USD ($)	Sep. 30, 2019	Jun. 30, 2019
Notes Payable, Noncurrent [Abstract]
2020
2021	6,250,000
2022	5,000,000
2023	17,800,722
2024
Total	$ 29,050,722

Financing Arrangements (Detai_3

Financing Arrangements (Details Narrative) - USD ($)	Sep. 27, 2019	Sep. 30, 2019	Sep. 30, 2018
Minimum annual revenue		$ 11,145,922	$ 9,361,164
SWK Credit Agreement [Member] | Convertible Notes Payable [Member]
Line of credit	$ 25,095,761
Prime rate	7.00%
Maturity date	Jun. 30, 2023
Principal payments	$ 1,250,000
Prepayment description	(a) $800,000 if such prepayment is made prior to September 27, 2021, (b) 1.00% of the amount prepaid if such prepayment is on or after September 27, 2021 and prior to September 27, 2022 and (c) $0 if such prepayment is made on or after September 27, 2022.
Minimum annual revenue	$ 50,000,000
SWK Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | Convertible Notes Payable [Member]
Prime rate	7.00%
Libor plus rate	10.25%
Revolving Credit Facility [Member] | Credit Loan Agreement [Member]
Prime rate		0.25%
Interest description		Interest is calculated at .25% over prime or 5.25%, whichever is higher, and is automatically paid on the last day of each month.
Payment fee		1.50%
Facility fee		0.25%
Maturity date		Jan. 22, 2021
Revolving Credit Facility [Member] | Solsys Medical, LLC [Member] | Credit Loan Agreement [Member]
Line of credit		$ 5,000,000

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Related Party Transactions [Abstract]
Sales	$ 625,134	$ 296,881
Accounts receivable	$ 426,142	$ 236,478

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ (515,000)	$ (427,000)
Income tax expense (benefit) - Solsys Acquisition	(4,085,000)
Valuation allowance on deferred tax assets	515,000	$ 427,000
Net income tax benefit	$ (4,085,000)

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
U.S. federal statutory effective rate	1.78%	0.00%
Income tax benefit	$ 4,100,000	$ 0
Deferred tax liabilities	4,100,000
Valuation allowance on deferred tax assets	515,000	$ 427,000
Solsys Medical, LLC [Member]
Valuation allowance on deferred tax assets	$ 1,800,000

Segment Reporting (Details)

Segment Reporting (Details) - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Product revenue:
Total	$ 11,145,922	$ 9,361,164
Product [Member] | US [Member]
Product revenue:
Total	6,544,908	5,404,518
Product [Member] | International [Member]
Product revenue:
Total	$ 4,601,014	$ 3,956,646

Acquisitions (Details)

Acquisitions (Details) - USD ($)	Sep. 30, 2019	Sep. 27, 2019	Jun. 30, 2019
Business Combinations [Abstract]
Cash		$ 5,525,601
Accounts receivable		5,480,890
Inventory		98,911
Prepaid expenses		193,866
Property and equipment		699,969
Lease assets		946,617
Customer relationships		7,400,000
Trade names		12,800,000
Non-competition agreements		200,000
Accounts payable and other current liabilities		(4,794,878)
Lease liabilities		(858,111)
Deferred tax liability		(4,085,000)
Notes payable		(24,050,837)
Total identifiable net assets		(442,972)
Goodwill	$ 110,787,776	109,086,682	$ 1,701,094
Total consideration		$ 108,643,710

Acquisition (Details1)

Acquisition (Details1) - USD ($)	3 Months Ended
	Sep. 30, 2019	Jun. 30, 2019
Total	$ 20,400,000
Customer Relationships [Member]
Total
Customer Relationships [Member] | Solsys Medical, LLC [Member]
Total	$ 7,400,000
Amortization period	15 years
Trade Names [Member]
Total
Trade Names [Member] | Solsys Medical, LLC [Member]
Total	$ 12,800,000
Amortization period	15 years
Noncompete Agreements [Member]
Total
Noncompete Agreements [Member] | Solsys Medical, LLC [Member]
Total	$ 200,000
Amortization period	1 year

Acquisition (Details 2)

Acquisition (Details 2) - USD ($)	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Business Combinations [Abstract]
Revenue	$ 19,490,717	$ 14,789,313
Net income (loss)	$ (4,601,195)	$ (4,866,467)

Acquisitions (Details Narrative

Acquisitions (Details Narrative) - USD ($)	Sep. 27, 2019	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019
Common stock share	5,703,082	15,353,185		9,646,728
Value of common stock	$ 108,600,000
Per share value	$ 19.05
Business transaction costs with acqisition	$ 1,800,000
Additional paid in capital	1,300,000	$ 1,300,000
Revenue	300,000
Operating loss	100,000	$ (2,270,525)	$ (2,612,534)
Solsys Medical, LLC [Member]
Acquisition amount	$ 4,400,000