Misonix (MSON) 10-K 13 Sep 18 2018 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Jun. 30, 2018	Aug. 29, 2018	Dec. 31, 2017
Document And Entity Information
Entity Registrant Name	MISONIX INC
Entity Central Index Key	880,432
Document Type	10-K
Trading Symbol	MSON
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 71,441,583
Entity Common Stock, Shares Outstanding		9,442,095
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,018

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jun. 30, 2018	Jun. 30, 2017
Current assets:
Cash and cash equivalents	$ 10,979,455	$ 11,557,071
Accounts receivable, less allowance for doubtful accounts of $200,000 and $96,868, respectively	5,245,549	5,133,389
Inventories, net	5,019,886	4,992,434
Prepaid expenses and other current assets	611,647	918,899
Total current assets	21,856,537	22,601,793
Property, plant and equipment, net of accumulated amortization and depreciation of $9,023,235 and $6,976,282, respectively	4,188,378	3,730,203
Patents, net of accumulated amortization of $1,063,393 and $885,394, respectively	757,447	719,136
Goodwill	1,701,094	1,701,094
Intangible and other assets	517,295	282,876
Deferred income tax		4,334,547
Total assets	29,020,751	33,369,649
Current liabilities:
Accounts payable	1,794,098	1,861,228
Accrued expenses and other current liabilities	2,812,172	3,346,138
Total current liabilities	4,606,270	5,207,366
Deferred lease liability		9,354
Deferred income	13,303	13,087
Total liabilities	4,619,573	5,229,807
Commitments and contingencies (Note 7)
Shareholders' equity:
Common stock, $.01 par value-shares authorized 40,000,000; 9,430,466 and 9,357,166 shares issued and outstanding in each period	94,305	93,572
Additional paid-in capital	39,772,973	36,808,810
Accumulated deficit	(15,466,100)	(8,762,540)
Total shareholders' equity	24,401,178	28,139,842
Total liabilities and shareholders' equity	$ 29,020,751	$ 33,369,649

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2018	Jun. 30, 2017
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 200,000	$ 96,868
Accumulated amortization and depreciation	9,023,235	6,976,282
Patents, Accumulated amortization	$ 1,063,393	$ 885,394
Common stock, par value (in dollars per share)	$ .01	$ .01
Common stock, authorized	40,000,000	40,000,000
Common stock, issued	9,430,466	9,357,166
Common stock, outstanding	9,430,466	9,357,166

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Revenues
Total revenue	$ 36,679,826	$ 27,269,963	$ 23,113,194
Cost of goods sold	9,794,898	8,217,439	7,640,626
Gross profit	26,884,928	19,052,524	15,472,568
Operating expenses:
Selling expenses	16,368,381	14,220,907	12,632,961
General and administrative expenses	9,063,139	9,595,206	6,829,516
Research and development expenses	4,394,149	1,837,497	1,839,479
Total operating expenses	29,825,669	25,653,610	21,301,956
Loss from operations	(2,940,741)	(6,601,086)	(5,829,388)
Other income (expense):
Interest income	26,123	75	81
Royalty income	525,438	3,771,610	3,948,757
Other	2,274	(36,211)	(21,878)
Total other income	553,835	3,735,474	3,926,960
(Loss) from continuing operations before income taxes	(2,386,906)	(2,865,612)	(1,902,428)
Income tax expense (benefit)	5,416,646	(1,022,808)	(573,351)
Net (loss) from continuing operations	(7,803,552)	(1,842,804)	(1,329,077)
Discontinued operations:
Gain from sale of discontinued operations net of tax of $58,883, $88,375 and $93,069, respectively	191,117	161,625	156,931
Net income from discontinued operations	191,117	161,625	156,931
Net (loss)	$ (7,612,435)	$ (1,681,179)	$ (1,172,146)
Continuing operations:
Basic (in dollars per share)	$ (0.87)	$ (0.22)	$ (0.17)
Diluted (in dollars per share)	(0.87)	(0.22)	(0.17)
Discontinued operations
Basic (in dollars per share)	0.02	0.02	0.02
Diluted (in dollars per share)	0.02	0.02	0.02
Combined
Basic (in dollars per share)	(0.85)	(0.20)	(0.15)
Diluted (in dollars per share)	$ (0.85)	$ (0.20)	$ (0.15)
Weighted average shares - Basic (in shares)	9,009,189	8,398,778	7,776,949
Weighted average shares - Diluted (in shares)	9,009,189	8,398,778	7,776,949
Product [Member]
Revenues
Total revenue	$ 32,669,826	$ 27,269,963	$ 23,113,194
License [Member]
Revenues
Total revenue	$ 4,010,000

Consolidated Statements of Ope5

Consolidated Statements of Operations (Parenthetical) - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Gain from sale of discontinued operations tax	$ 58,883	$ 88,375	$ 93,069

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($)	Common Stock [Member]	Treasury Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Total
Balance at beginning at Jun. 30, 2015	$ 78,691	$ (946,260)	$ 30,531,129	$ (5,909,215)	$ 23,754,345
Balance at beginning (in shares) at Jun. 30, 2015	7,869,095	(124,982)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss)				(1,172,146)	(1,172,146)
Proceeds from exercise of stock options	$ 791	$ (153,092)	341,748		$ 189,447
Proceeds from exercise of stock options (in shares)	79,139	(13,867)			82,737
Stock-based compensation			1,629,644		$ 1,629,644
Balance at ending at Jun. 30, 2016	$ 79,482	$ (1,099,352)	32,502,521	(7,081,361)	24,401,290
Balance at ending (in shares) at Jun. 30, 2016	7,948,234	(138,849)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss)				(1,681,179)	(1,681,179)
Sale of common stock	$ 7,615		3,992,385		4,000,000
Sale of common stock (in shares)	761,469
Issuance of restricted stock	$ 4,000		(4,000)
Issuance of restricted stock (in shares)	400,000
Proceeds from exercise of stock options	$ 2,475	$ 1,099,352	(768,235)		$ 333,592
Proceeds from exercise of stock options (in shares)	247,463	138,849			527,663
Stock-based compensation			1,086,139		$ 1,086,139
Balance at ending at Jun. 30, 2017	$ 93,572		36,808,810	(8,762,540)	28,139,842
Balance at ending (in shares) at Jun. 30, 2017	9,357,166
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Implementation of new accounting standard				908,875	908,875
Net (loss)				(7,612,435)	(7,612,435)
Proceeds from exercise of stock options	$ 733		335,335		$ 336,068
Proceeds from exercise of stock options (in shares)	73,300				76,418
Stock-based compensation			2,628,828		$ 2,628,828
Balance at ending at Jun. 30, 2018	$ 94,305		$ 39,772,973	$ (15,466,100)	$ 24,401,178
Balance at ending (in shares) at Jun. 30, 2018	9,430,466

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Operating activities
Net (loss)	$ (7,612,435)	$ (1,681,179)	$ (1,172,146)
Net (income) from discontinued operations	(191,117)	(161,625)	(156,931)
Adjustments to reconcile net (loss) to net cash used in continuing operating activities:
Depreciation and amortization	1,427,225	1,066,844	1,651,972
Bad debt expense	55,390		(30,000)
Deferred income tax expense (benefit)	5,243,422	(939,857)	(502,262)
Stock-based compensation	2,628,828	1,086,139	1,629,644
Deferred income	216	(18,598)	(8,966)
Deferred lease liability	(9,354)	92	9,262
Changes in operating assets and liabilities:
Accounts receivable	(167,550)	(1,263,962)	641,820
Inventories	(1,410,356)	(873,136)	(2,823,304)
Prepaid expenses and other assets	72,833	(404,608)	(186,211)
Accounts payable, accrued expenses	(601,096)	1,917,232	630,882
Net cash used in continuing operations	(563,994)	(1,272,658)	(316,240)
Investing activities
Acquisition of property, plant and equipment	(375,419)	(490,421)	(471,829)
Additional patents	(165,388)	(224,394)	(132,731)
Net cash used in investing continuing activities	(540,807)	(714,815)	(604,560)
Net cash provided by investing activities - discontinued operations	191,117	161,625	156,931
Net cash used in investing activities	(349,690)	(553,190)	(447,629)
Financing activities
Proceeds from sale of common stock		4,000,000
Proceeds from exercise of stock options	336,068	333,592	189,447
Net cash provided by financing activities from continuing operations	336,068	4,333,592	189,447
Net (decrease)/increase in cash and cash equivalents	(577,616)	2,507,744	(574,422)
Cash and cash equivalents at beginning of period	11,557,071	9,049,327	9,623,749
Cash and cash equivalents at end of period	10,979,455	11,557,071	9,049,327
Cash paid for:
Income taxes	704	10,179	140,931
Transfer of inventory to property, plant and equipment for the consignment of product	$ 1,382,904	$ 1,703,637	$ 1,303,532

Basis of Presentation, Organiza

Basis of Presentation, Organization and Business and Summary of Significant Accounting Policies	12 Months Ended
	Jun. 30, 2018
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 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. Organization and Business Misonix designs, manufactures, develops and markets therapeutic ultrasonic devices. These products are used for precise bone sculpting, removal of soft tumors, and tissue debridement in the fields of orthopedic surgery, plastic surgery, neurosurgery, podiatry and vascular surgery. In the United States, our products are marketed primarily through a hybrid sales approach. This includes direct sales representatives, managed by regional sales managers, along with independent distributors. Outside the United States, we sell BoneScalpel and SonaStar to specialty distributors who purchase products from us to resell to their clinical customer bases. We sell to all major markets in the Americas, Europe, Middle East, Asia Pacific and Africa. The Company operates as one business segment. 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 will 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 June 30, 2018 were $2,542,579. Cash and Cash Equivalents The Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. All of the Company’s cash is maintained in bank accounts and accordingly it does not have cash equivalents at June 30, 2018. The Company’s cash balance at June 30, 2018 was $10,979,455. The Company maintains cash balances at various financial institutions. At June 30, 2018, these financial institutions held cash that was approximately $10,729,455 in excess of amounts insured by the Federal Deposit Insurance Corporation and other government agencies. Major Customers and Concentration of Credit Risk Included in sales from continuing operations are sales to the Company distributor of SonaStar in China of $6,969,258, $0 and $0, for the fiscal years ended June 30, 2018, 2017 and 2016, respectively, inclusive of product licensing fees of $4,010,000. Accounts receivable from this customer were $293,915 at June 30, 2018. Total royalties from Medtronic Minimally Invasive Therapies (“MMIT”) related to their sales of the Company’s ultrasonic cutting and sculpting products, which use high frequency sound waves to coagulate and divide tissue for both open and laparoscopic surgery, were $525,000, $3,764,000 and $3,903,000 for the fiscal years ended June 30, 2018, 2017 and 2016, respectively. Accounts receivable from MMIT royalties were $0 and $925,000 at June 30, 2018 and 2017, respectively. The license agreement with MMIT expired in August 2017. At June 30, 2018 and 2017, the Company’s accounts receivable with customers outside the United States were approximately $1,630,000 and $860,000, respectively, none of which is over 90 days. 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. Accounts Receivable Accounts receivable, principally trade, are generally due within 30 to 90 days and are stated at amounts due from customers, net of an allowance for doubtful accounts. The Company performs ongoing credit evaluations and adjusts credit limits based upon payment history and the customer’s current credit worthiness, as determined by a review of their current credit information. The Company continuously monitors aging reports, collections and payments from customers and maintains a provision for estimated credit losses based upon historical experience and any specific customer collection issues that have been identified. While such credit losses have historically been within expectations and the provisions established, the Company cannot guarantee that the same credit loss rates will be experienced in the future. The Company writes off accounts receivable when they become uncollectible. Inventories Inventories are stated at the lower of cost (first-in, first-out) or net realizable value and consist of raw materials, work-in process and finished goods and include purchased materials, direct labor and manufacturing overhead. Management evaluates the need to record adjustments to write down inventory to the lower of cost or net realizable value on a quarterly basis. The Company’s policy is to assess the valuation of all inventories, including raw materials, work-in-process and finished goods and it writes down its inventory for estimated obsolescence based upon the age of inventory and assumptions about future demand and usage. Inventory items used for demonstration purposes, rentals or on consignment are classified as property, plant and equipment. Property, Plant and Equipment Property, plant and equipment are recorded at cost. Minor replacements and maintenance and repair expenses are charged to expense as incurred. Depreciation of property and equipment is provided using the straight-line method over estimated useful lives ranging from 3 to 5 years. Leasehold improvements are amortized over the life of the lease or the useful life of the related asset, whichever is shorter. The Company’s policy is to periodically evaluate the appropriateness of the lives assigned to property, plant and equipment and make adjustments if necessary. Inventory items included in property, plant and equipment are depreciated using the straight line method over estimated useful lives of 3 to 5 years. Depreciation of BoneScapel and Sonic OneOR generators which are consigned to customers are depreciated over a 5 year period, and depreciation is charged to selling expenses. See Note 4. Revenue Recognition The Company records revenue upon shipment for products shipped F.O.B. shipping point. Products shipped F.O.B. destination points are recorded as revenue when received at the point of destination. 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. Service contracts and royalty income are recognized when earned. The Company generally warrantees its product for a 12 month period, and accordingly records a related warranty reserve. Historical warranty costs have not been significant. The Company presents taxes collected from customers and remitted to governmental authorities in the consolidated statements of operations on a net basis. License revenue is recorded when 1) a contract has been executed, 2) the underlying intellectual property has been transferred, 3) the payment terms are identified and 4) the risk of a reversal of revenue from lack of receipt of consideration or other factors has passed. License revenue for the years ended June 30, 2018, 2017 and 2016 was $4,010,000, $0 and $0, respectively. On October 19, 2017, the Company entered into a License and Exclusive Manufacturing Agreement (the “Agreement”) with Hunan Xing Hang Rui Kang Bio-technologies Co., Ltd., a Chinese corporation (the “Licensee”or “Hunan” ) under which Misonix has licensed certain manufacturing and distribution rights to its SonaStar product line in China, Hong Kong and Macau (the “Territory”) in exchange for payments totaling at least $11,000,000. The Agreement with Hunan provides for the following three primary revenue streams: a) Sales of Misonix SonaStar products, totaling $990,000, which have been recognized as product revenue when the products were shipped. For the quarters ended September 30, 2017, December 31, 2017 and March 31, 2018, revenue of $270,000, $570,000 and $150,000, respectively, was recognized from these product shipments, which completed the initial product shipment requirement under the Agreement. b) A technology license fee of $4,010,000, relating to the granting of a technology license to Hunan, allowing Hunan to manufacture and sell SonaStar products in China. The applicable technology was delivered to Hunan in the quarter ended March 31, 2018, and the license fee was recorded in full in that quarter. This technology license fee will be accounted for as “Revenue - License” in our statement of operations in the quarter ended March 31, 2018. c) A royalty fee based on the number of generators manufactured and sold by Hunan in China during the initial 10 year term of the Agreement. For the calendar years 2019, 2020 and 2021, Hunan will pay a minimum royalty fee of $2 million per year. After 2021, there are no minimum royalties. These royalty payments will be recorded as “Revenue – Royalty” when the royalties are earned. In addition, the Agreement contains a provision allowing for Misonix to be reimbursed by Hunan for it’s out of pocket costs to assist Hunan with training to build the product, to the extent Hunan requests any training. We consider this option to be a substantive option which should be accounted for as a separate event as the event occurs rather than as a deliverable in the original arrangement. We also believe that this will be an immaterial portion of this contract. During the year ended June 30, 2018, the Company delivered the licensed SonaStar technology to the Licensee, and recorded license revenue of $4,010,000. Long-Lived Assets The carrying values of intangible and other long-lived assets, excluding goodwill, are periodically reviewed to determine if any impairment indicators are present. If it is determined that such indicators are present and the review indicates that the assets will not be fully recoverable, based on undiscounted estimated cash flows over the remaining amortization and depreciation period, their carrying values are reduced to estimated fair value. Impairment indicators include, among other conditions, cash flow deficits, historic or anticipated decline in revenue or operating profit, adverse legal or regulatory developments, accumulation of costs significantly in excess of amounts originally expected to acquire the asset and a material decrease in the fair value of some or all of the assets. Assets are grouped at the lowest levels for which there are identifiable cash flows that are largely independent of the cash flows generated by other asset groups. No such impairment was deemed to exist in fiscal 2018 and 2017. Goodwill Goodwill is not amortized. We review 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 this impairment test 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 also compares its market capitalization to the value of its goodwill to view for evidence of impairment. The Company completed its annual goodwill impairment tests for fiscal 2018 and 2017 as of June 30th each year. No impairment of goodwill was deemed to exist in fiscal 2018 and 2017. Patents The cost of acquiring or processing patents is capitalized at cost. This amount is being amortized using the straight-line method over the estimated useful lives of the underlying assets, which is approximately 17 years. Patents totaled $757,447 and $719,136 at June 30, 2018 and 2017, respectively. Amortization expense for the years ended June 30, 2018, 2017 and 2016 was approximately $127,000, $110,000 and $94,000, respectively. The following is a schedule of estimated future patent amortization expense as of June 30, 2018 during the following fiscal years: 2019 $ 125,961 2020 101,483 2021 95,312 2022 62,765 2023 61,695 Thereafter 310,231 $ 757,447 Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in those periods in which temporary differences become deductible. Should management determine that it is more likely than not that some portion of the deferred tax asset will not be realized, a valuation allowance against the deferred tax asset would be established in the period such determination was made. The Company recognizes a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. The Company classifies income tax related interest and penalties as a component of income tax expense. 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 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 weighted average shares outstanding and diluted weighted average shares outstanding: For the twelve months ended June 30, 2018 2017 2016 Basic weighted average shares outstanding 9,009,189 8,398,778 7,776,949 Dilutive effect of resticted stock awards (participating securities) — — — Denominator for basic earnings per share 9,009,189 8,398,778 7,776,949 Dilutive effect of stock options — — — Diluted weighted average shares outstanding 9,009,189 8,398,778 7,776,949 Diluted EPS for the three years ended June 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 211,801, 473,848, and 467,733 shares of common stock for the years ended June 30, 2018, 2017 and 2016, respectively. Also excluded from the calculation of both basic and diluted earnings per share for the years ended June 30, 2018 and 2017 are the 400,000 shares of restricted common stock which were issued in December 2016. Research and Development All research and development expenses are expensed as incurred and are included in operating expenses. Advertising Expense The cost of advertising is expensed in the period the advertising first takes place. The Company incurred approximately $0, $76,000 and $386,000 in advertising costs during the fiscal years ended June 30, 2018, 2017 and 2016, respectively. Advertising costs are reported in selling expenses on the statement of operations. Depreciation Expense for Consigned Inventory The Company typically provides to its United States customers, on a consignment basis, the generators used to power its BoneScapel and SonicOne products. Title to these generators remains at all times with the Company. When these generators are deployed in the field at customer locations, the Company depreciates these units over a five year period and charges the depreciation to selling expenses. Depreciation expense relating to consigned generators for the three years ended June 30, 2018 was $487,000, $425,000 and $416,000, respectively. Prior to fiscal 2017, consigned units were depreciated over a three year period. The impact of this change in accounting estimate was a reduction in expense of approximately $283,000 for the year ended June 30, 2017, compared to what the expense would have been without this change. Shipping and Handling Shipping and handling fees for the fiscal years ended June 30, 2018, 2017 and 2016 were approximately $99,000, $119,000 and $109,000 respectively, and are reported as a component of net sales. Shipping and handling costs for the fiscal years ended June 30, 2018, 2017 and 2016 were approximately $289,000, $337,000 and $142,000, respectively, and are reported as a component of selling expenses. Stock-Based Compensation The Company measures compensation cost for all share based payments at fair value and recognizes the cost over the vesting period. The Company uses the Black-Scholes method to value awards and utilizes the straight line amortization method to recognize the expense associated with the awards with graded vesting terms. Restricted Stock Awards The Company measures compensation cost for all restricted stock awards at fair value and recognizes the cost over the vesting period. For awards that have market conditions, the Company uses the Monte Carlo valuation method to value awards and utilizes the straight line amortization method to recognize the expense associated with the awards with graded vesting terms. Where awards have performance conditions, the Company will determine the probability of achieving those conditions and will record compensation expense when it is probable that the conditions will be met. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (the “FASB”) issued ASC Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), which was subsequently updated. This purpose of the updated standard is to provide enhancements to the quality and consistency of revenue recognition between companies using U.S. GAAP and International Financial Reporting Standards. The new five-step recognition model introduces the core principle of recognizing revenue in an amount that reflects the consideration to which the entity expects to be entitled in exchange for the promised goods or services. When effective, as amended, ASU 2014-09 will require us to use either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients; or (ii) a modified retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures to describe the nature, amount, timing and uncertainty of revenue, certain costs and cash flows arising from our contracts with customers). This standard became effective for the Company on July 1, 2018 and we will adopt the new pronouncement under the modified retrospective approach. We have reviewed our various revenue streams within our reporting segment and have gathered data regarding the segregation of those revenue streams into the following types for analysis (i) sale of medical device products under standard ship and bill practices, (ii) consignment and leasing of medical device products, and (iii) licensing agreements related to medical technology. We have gathered data and quantified the amount of sales by type of revenue stream and categorized the types of sales for the purpose of comparing how we currently recognize revenue to the new standard in order to quantify the impact of this ASU. We have finalized our review on our medical device product sales and the consignment and leasing of medical devices. We generally anticipate having substantially similar performance obligations under the new guidance as compared with deliverables and units of account currently being recognized. We expect to recognize an immaterial adjustment to retained earnings reflecting the cumulative impact for the above described revenue streams. Due to the nature of the licensing agreements that the Company enters into, the revenue recognition treatment required under the new standard will depend on contract-specific terms. The Company is in the process of concluding on the impact that the standard will have on this revenue stream and will need to consistently evaluate the nature of any implicit price concession granted on a major license and IP agreement with the Company’s Chinese partner which will impact the timing of royalty revenue to be recorded under the contract. This may result in revenue being recognized on this license earlier than current practice although such revenue has not yet been recorded and the Company has not yet concluded on any necessary adjustment to retained earnings upon adoption. In February 2016, the FASB issued guidance on lease accounting requiring lessees to recognize a right-of-use asset and a lease liability for long-term leases. The liability will be equal to the present value of lease payments. This guidance must be applied using a modified retrospective transition approach to all annual and interim periods presented and is effective for the Company beginning in fiscal 2019. The Company is currently in the early stages of evaluating this guidance to determine the impact it will have on its consolidated financial statements. In August 2016, the FASB issued guidance on the Statement of Cash Flows Classification of certain cash receipts and cash payments (a consensus of the Emerging Issues Task Force). This guidance addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. This guidance will be effective for the Company beginning in fiscal 2019. As this guidance only affects the classification within the statement of cash flows, ASU 2016-15 is not expected to have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations: Clarifying the Definition of a Business 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 March 2016, the FASB issued Accounting Standards Update No. 2016-09 “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” intended to simplify several aspects of accounting for share-based payment transactions. The Company adopted these amendments beginning in the first quarter of fiscal 2018. The guidance requires that all excess tax benefits and tax deficiencies previously recorded as additional paid-in capital be prospectively recorded in income tax expense. The guidance allows for an increase in the threshold for net share settlement up to the maximum statutory rate in employees’ applicable jurisdictions without triggering liability classification. The adoption of this guidance had an immaterial impact on income taxes on the Company’s Consolidated Statement of Operations for the year ended June 30, 2018. The Company elected to apply the presentation requirement for cash flows related to excess tax benefits prospectively, which had an immaterial impact on both net cash from operating activities and net cash used in financing activities for the year ended June 30, 2018. The presentation requirements for cash flows related to employee taxes paid for withheld shares had no impact on any of the periods presented on the Company’s Consolidated Statements of Cash Flows since such cash flows have historically been presented as a financing activity. Finally, the Company has elected to account for forfeitures as they occur, rather than estimate expected forfeitures. As a result, the Company recorded the cumulative impact of $908,875 as an increase to Deferred Income Taxes with a corresponding decrease to Accumulated Deficit.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	12 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	2. Fair Value of Financial Instruments We follow a three-level fair value hierarchy that prioritizes the inputs to measure fair value. 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 June 30, 2018 and 2017, all of our cash, trade accounts receivable and trade accounts payable were short term in nature, and their carrying amounts approximate fair value.

Inventories

Inventories	12 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
Inventories	3. Inventories Inventories are summarized as follows: June 30, June 30, Raw material $ 3,540,205 $ 2,409,148 Work-in-process 180,442 741,994 Finished goods 1,743,497 3,267,232 5,464,144 6,418,374 Less valuation reserve 444,258 1,425,940 $ 5,019,886 $ 4,992,434

Property, Plant and Equipment

Property, Plant and Equipment	12 Months Ended
	Jun. 30, 2018
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	4. Property, Plant and Equipment Property, plant and equipment consist of the following: June 30, June 30, Demonstration and consignment inventory $ 8,227,878 $ 6,951,583 Machinery and equipment 2,582,244 2,452,363 Furniture and fixtures 1,464,325 1,406,758 Leasehold improvements 691,751 691,751 Software systems 223,087 — Automobiles 22,328 22,328 13,211,613 11,524,783 Less: accumulated depreciation and amortization (9,023,235 ) (7,794,580 ) $ 4,188,378 $ 3,730,203 Depreciation and amortization of property, plant and equipment totaled approximately $1,300,000, $957,000 and $1,339,000 for the fiscal years ended June 30, 2018, 2017 and 2016, respectively.

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	12 Months Ended
	Jun. 30, 2018
Payables and Accruals [Abstract]
Accrued Expenses and Other Current Liabilities	5. Accrued Expenses and Other Current Liabilities The following summarizes accrued expenses and other current liabilities: June 30, June 30, Accrued payroll, payroll taxes and vacation $ 351,435 $ 715,245 Accrued bonus 552,988 343,400 Accrued commissions 742,807 751,000 Professional fees 102,065 662,537 Litigation settlement — 500,000 Deferred income 13,303 27,901 Deferred foreign taxes 401,000 — Vendor and sales tax accruals 648,574 346,055 $ 2,812,172 $ 3,346,138

Stock-Based Compensation Plans

Stock-Based Compensation Plans	12 Months Ended
	Jun. 30, 2018
Equity [Abstract]
Stock-Based Compensation Plans	6. Stock-Based Compensation Plans At June 30, 2018, the Company had outstanding equity-linked grants under eight stock-based compensation plans (the “Plans”), as follows: Plan Initial Granted Exercised Expired / Outstanding Available 2001 Employee Stock Option Plan 1,000,000 1,251,261 376,368 868,955 5,938 — 2005 Employee Equity Incentive Plan 500,000 547,125 490,550 48,925 7,650 — 2005 Non Employee Director Stock Option Plan 200,000 195,000 112,500 37,500 45,000 — 2009 Employee Equity Incentive Plan 500,000 624,925 386,350 125,600 112,975 675 2009 Non Employee Director Stock Option Plan 200,000 225,000 56,250 75,000 93,750 50,000 2012 Employee Equity Incentive Plan 500,000 695,000 122,370 196,000 376,630 1,000 2012 Non Employee Director Stock Option Plan 200,000 222,500 3,750 45,000 173,750 22,500 2014 Employee Equity Incentive Plan 750,000 505,000 3,625 158,875 342,500 3,875 2017 Equity Incentive Plan 750,000 172,000 — — 172,000 578,000 Total 1,330,193 656,050 The compensation cost that has been charged against income for these plans was $1,728,491, $1,086,139 and $1,629,644 for the fiscal years ended June 30, 2018, 2017 and 2016, respectively, and is recorded in the department associated with the employee to which the grants are issued. The expense for fiscal 2018 included a reversal of stock compensation from prior periods due to forfeitures of unvested options of $625,202. As of June 30, 2018, there was $4,617,767 of total unrecognized compensation cost related to non-vested share-based compensation arrangements to be recognized over a weighted-average period of 2.4 years, which includes $2,248,649 of unrecognized compensation expense on restricted stock awards. 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 the price of the Common Stock on the NASDAQ Stock Market on the date of grant as set forth in the 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. The weighted average fair value at date of grant for options granted during the fiscal years ended June 30, 2018, 2017 and 2016 was $5.50, $4.46 and $4.68 per share, respectively. The fair value was estimated based on the weighted average assumptions of: For the three years ended June 30, 2018 2017 2016 Risk-free interest rates 1.98 % 1.80 % 1.71 % Expected option life in years 5.95 6.25 6.25 Expected stock price volatility 57.42 % 54.68 % 55.41 % Expected dividend yield 0 % 0 % 0 % A summary of option activity under the Plans as of June 30, 2018, 2017 and 2016, and changes during the years ended on those dates is presented below: Options Outstanding Weighted Aggregate Outstanding as of June 30, 2015 1,557,616 5.80 $ 6,553,821 Vested and exercisable at June 30, 2015 620,256 3.19 $ 3,911,604 Granted 320,000 8.80 Exercised (82,737 ) 4.60 Forfeited (4,375 ) 9.23 Expired (280 ) 5.82 Outstanding as of June 30, 2016 1,790,224 $ 6.38 $ 1,675,072 Vested and exercisable at June 30, 2016 813,349 $ 3.82 $ 1,501,208 Granted 327,500 8.34 Exercised (527,663 ) 3.30 Forfeited (383,625 ) 8.23 Expired (15,200 ) 8.51 Outstanding as of June 30, 2017 1,191,236 $ 7.66 $ 2,748,956 Vested and exercisable at June 30, 2017 517,361 $ 6.33 $ 1,923,794 Granted 305,500 10.10 Exercised (76,418 ) 5.47 Forfeited (15,125 ) 7.89 Expired (75,000 ) 4.87 Outstanding as of June 30, 2018 1,330,193 $ 8.47 $ 5,369,557 Vested and exercisable at June 30, 2018 681,316 $ 7.67 $ 3,355,240 The total fair value of shares vested during the year ended June 30, 2018 was $1,553,905. The number and weighted-average grant-date fair value of non-vested stock options at the beginning of fiscal 2018 was 673,875 and $4.77, respectively. The number and weighted-average grant-date fair value of stock options which vested during fiscal 2018 was 648,777 and $5.08, respectively. Stock options are granted with exercise prices not less than the fair market value of the Company’s Common Stock, at the time of the grant, with an exercise term as determined by the compensation committee of the Company’s board of directors (the “Committee”) not to exceed 10 years. The Committee determines the vesting period for the Company’s stock options. Generally, such stock options have vesting periods of immediate to four years. Certain option awards provide for accelerated vesting upon meeting specific retirement, death or disability criteria, and upon change of control. 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 $3.4 million and compensation expense recorded for the year ended June 30, 2018 was $900,337. At June 30, 2018, there was $2,248,649 of unrecognized compensation cost to non-vested restricted stock awards to be recognized over a weighted-average period of 2.8 years. The awards contain a combination of vesting terms which include time vesting, performance vesting relating to revenue achievement, and market vesting related to obtaining certain levels of Company stock prices. At June 30, 2018, 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%.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	7. Commitments and Contingencies Leases The Company has entered into several non-cancellable operating leases for the rental of certain manufacturing and office space, equipment and automobiles expiring in various years through 2021. The principal building lease provides for a monthly rental of approximately $28,000. The following is a schedule of future minimum lease payments, by year and in the aggregate, under operating leases with initial or remaining terms of one year or more at June 30, 2018: Operating 2019 $ 359,353 2020 115,324 2021 12,488 2022 — Total mimimun lease payments $ 487,165 Certain of the leases provide for escalation clauses, renewal options and the payment of real estate taxes and other occupancy costs. Rent expense for all operating leases was approximately $435,000, $428,000 and $411,000 for the fiscal years ended June 30, 2018, 2017 and 2016, respectively. Purchase Commitments As of June 30, 2018, 2017, and 2016, the Company had purchase and inventory commitments totaling $3,841,641, $2,859,718 and $2,507,125, respectively. Class Action Securities Litigation On September 19, 2016, Richard Scalfani, an individual shareholder of Misonix, filed a lawsuit against the Company and its former CEO and CFO in the U.S. District Court for the Eastern District of New York, alleging violations of the federal securities laws. The complaint alleges that the Company’s stock price was artificially inflated between November 5, 2015 and September 14, 2016 as a result of alleged false and misleading statements in the Company’s securities filings concerning the Company’s business, operations, and prospects and the Company’s internal control over financial reporting. Scalfani filed the action seeking to represent a putative class of all persons (other than defendants, officers and directors of the Company, and their affiliates) who purchased publicly traded Misonix securities between November 5, 2015 and September 14, 2016. Scalfani was seeking an unspecified amount of damages for himself and for the putative class under the federal securities laws. On March 24, 2017, the Court appointed Scalfani and another individual Misonix shareholder, Tracey Angiuoli, as lead plaintiffs for purposes of pursuing the action on behalf of the putative class. The lead plaintiffs, on behalf of the putative class, and the Company reached a settlement in principle under which the Company would pay $500,000 to resolve the matter. The district court approved the settlement and dismissed the lawsuit with prejudice in an order dated December 16, 2017. The Company has paid its $250,000, representing its insurance retention. The balance was paid by the Company’s insurance carrier. Former Chinese Distributor - FCPA With the assistance of outside counsel, the Company conducted a voluntary investigation into the business practices of the independent Chinese entity that previously distributed its products in China and the Company’s knowledge of those business practices, which may have implications under the FCPA, as well as into various internal controls issues identified during the investigation. On September 27, 2016 and September 28, 2016, the Company voluntarily contacted the SEC and the DOJ, respectively, to advise both agencies of these potential issues. The Company has provided and will continue to provide documents and other information to the SEC and the DOJ, and is cooperating fully with these agencies in their ongoing investigations of these matters. Although the Company’s investigation is complete, additional issues or facts could arise which may expand the scope or severity of the potential violations. The Company has no current information derived from the investigation or otherwise to suggest that its previously reported financial statements and results are incorrect. At this stage, the Company is unable to predict what, if any, action the DOJ or the SEC may take or what, if any, penalties or remedial measures these agencies may seek. Nor can the Company predict the impact on the Company as a result of these matters, which may include the imposition of fines, civil and criminal penalties, which are not currently estimable, as well as equitable remedies, including disgorgement of any profits earned from improper conduct and injunctive relief, limitations on the Company’s conduct, and the imposition of a compliance monitor. The DOJ and the SEC periodically have based the amount of a penalty or disgorgement in connection with an FCPA action, at least in part, on the amount of profits that a company obtained from the business in which the violations of the FCPA occurred. During its distributorship relationship with the prior Chinese distributor from 2010 through 2016, the Company generated revenues of approximately $8 million. Further, the Company may suffer other civil penalties or adverse impacts, including lawsuits by private litigants in addition to the lawsuits that already have been filed, or investigations and fines imposed by local authorities. The investigative costs to date are approximately $3.0 million, of which approximately $0.5 million, $2.4 million and $0.1 million was charged to general and administrative expenses during the years ended June 30, 2018, 2017 and 2016 respectively. Former Chinese Distributor – Litigation On April 5, 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 remaining in the case is for breach of contract against the Company. The Company believes it has various legal and factual defenses to the allegations in the complaint, and intends to vigorously defend the action. The case is at its earliest stages; discovery is just beginning and there is no trial date. Stockholder Derivative Litigation On June 6, 2017, Irving Feldbaum, an individual shareholder of Misonix, filed a lawsuit in the U.S. District Court for the Eastern District of New York. The complaint alleges claims against the Company’s board of directors, its former CEO and CFO, certain of its former directors, and the Company as a nominal defendant for alleged violations of Section 14(a) of the Securities Exchange Act of 1934 and state law claims for breach of fiduciary duty, waste of corporate assets, and unjust enrichment. The complaint alleges that the Company incurred damages as a result of alleged false and misleading statements in the Company’s securities filings concerning the Company’s business, operations, and prospects and the Company’s internal control over financial reporting. The complaint also alleges that the Company’s February 4, 2016 Proxy Statement contained false and misleading statements regarding executive compensation. The complaint seeks the recovery of damages on behalf of the Company and the implementation of changes to corporate governance procedures. On June 16, 2017, Michael Rubin, another individual shareholder of Misonix, filed a case alleging similar claims in the same district court. On July 21, 2017, the district court consolidated the two actions for all purposes. On July 16, 2018, the Company and counsel for Mr. Feldbaum and Mr. Rubin informed the District Court that the parties had reached a settlement in principle. There are aspects of the settlement that remain to be negotiated and documented, and the settlement is subject to approval by the District Court after notice to the Company’s shareholders.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Jun. 30, 2018
Related Party Transactions [Abstract]
Related Party Transactions	8. Related Party Transactions OrthoXact Proprietary Limited (“OrthoXact”) (formerly Applied BioSurgical) is an independent distributor for the Company in South Africa. The chief executive officer of OrthoXact is also the brother of Stavros G. Vizirgianakis, the CEO of Misonix, Inc. Set forth below is a table showing the Company’s net revenues for the years ended June 30 and accounts receivable at June 30 for the indicated time periods below with OrthoXact: For the years ended June 30: Applied BioSurgical 2018 2017 2016 Sales $ 999,719 $ 580,888 $ 559,787 Accounts receivable $ 239,062 $ 192,984 $ 272,421 On October 25, 2016, the Company sold 761,469 shares of Common Stock in a private placement to Stavros G. Vizirgianakis, the Company’s current Chief Executive Officer, at a price per share of $5.253, representing total cash proceeds to the Company of approximately $4.0 million.

Income Taxes

Income Taxes	12 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	9. Income Taxes Open tax years related to federal and state income tax filings are for the years ended June 30, 2015, 2016, and 2017. The Company’s net operating loss carryforwards from closed years can be adjusted by the tax authorities when they are utilized in an open year. The Company files state tax returns in California, Florida, New Jersey, New York, Pennsylvania, Texas and various other states. The Company was examined by the Internal Revenue Service for the year ended June 30, 2015 and such examination had been closed with no change in taxes. The Company’s former foreign subsidiary, Misonix Ltd. filed tax return in the United Kingdom and it was dissolved in June 2018. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below: June 30, 2018 2017 Deferred tax assets / (liabilities) Bad debt reserves $ 45,817 $ 34,243 Inventory reserves 194,363 676,733 Accruals and allowances 18,938 269,539 Net operating loss carryforwards 2,738,775 3,500,826 Tax credits 496,898 455,916 Foreign tax credits 401,000 — Stock based compensation 516,733 451,892 Deferred gain - HIFU and Labcaire 91,862 149,222 Amortization (378,818 ) (594,306 ) Depreciation (36,088 ) 16,030 Other 6,873 3,182 4,096,353 4,963,277 Valuation Allowance (4,096,353 ) (628,730 ) Total net deferred tax assets $ — $ 4,334,547 Tax Cuts and Jobs Act of 2017 The Tax Cuts and Jobs Act of 2017 (the “Tax Legislation”), enacted on December 22, 2017, contains significant changes to U.S. tax law, including lowering the U.S. corporate income tax rate to 21%, implementing a territorial tax system, and imposing a one-time tax on deemed repatriated earnings of foreign subsidiaries. The Tax Legislation reduces the U.S. statutory tax rate from 35% to 21%, effective January 1, 2018. U.S. tax law requires that taxpayers with a fiscal year that begins before and ends after the effective date of a rate change calculate a blended tax rate based on the pro rata number of days in the fiscal year before and after the effective date. As a result, for the fiscal year ended June 30, 2018, the Company’s U.S. statutory income tax rate is 27.55%. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Legislation. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Legislation enactment date for companies to complete the accounting under ASC 740, Income Taxes. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Legislation for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Legislation is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. The Company recorded $1,755,823 discrete tax expense representing the expense of remeasuring its U.S. deferred tax assets at the lower 21% U.S. statutory tax rate. In addition, the Company had approximately $169,000 of alternative minimum tax credit which was reclassed to tax receivable. 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. While the Company had positive cumulative pretax income as of June 30, 2017, based on actual results for fiscal 2018 and the Company’s current forecast for fiscal 2019 the Company is in a three year cumulative loss position at June 30, 2018, and it expects to be in a cumulative pretax loss position as of June 30, 2019. Management evaluated available positive evidence, including the continued growth of the Company’s revenues and gross profit margins, its recent SonaStar technology license to its Chinese partner and the reduction in investigative and professional fees recognized in fiscal 2017, along with available negative evidence, including the Company’s continuing investment in building its next generation Nexus platform and its continuing investment in building a direct sales force, while at the same time paying commissions to its domestic sales distributors. 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 a full valuation allowance of $4,096,353 against its remaining deferred tax assets at June 30, 2018. 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 June 30, 2018, the Company had approximately $12,175,000 of U.S. federal net operating loss carryforwards of which $10,504,000 will expire in tax years between 2031 and 2037 and $1,671,000 will not expire. Included in U.S. Federal net operating loss carryforward amount are windfall tax benefits related to exercised stock options of approximately $2,571,000, the benefit of which was recorded in equity when the Company adopted ASU 2016-09 beginning in fiscal 2018. The Company has approximately $497,000 of research and development tax credit carryforwards which expire in the tax years between 2026 and 2038. Significant components of the income tax expense (benefit) attributable to continuing operations are as follows: Year Ended June 30, 2018 2017 2016 Current: Federal $ — $ — $ 4,962 Foreign 401,000 5,424 17,012 Total current 401,000 5,424 21,974 Deferred: Federal 5,116,778 (990,016 ) (558,133 ) State (101,132 ) (38,216 ) (37,192 ) Total deferred 5,015,646 (1,028,232 ) (595,325 ) $ 5,416,646 $ (1,022,808 ) $ (573,351 ) The reconciliation of income tax expense (benefit) computed at the Federal statutory tax rates to income tax expense (benefit) is as follows: Year ended June 30, 2018 2017 2016 Tax at federal statutory rates $ (483,207 ) $ (974,308 ) $ (646,828 ) State income taxes, net of federal benefit (102,812 ) (34,636 ) (13,319 ) Research credit (216,099 ) (50,000 ) (49,593 ) Stock-based compensation 306,678 6,692 191,827 Deferred tax asset adjustments (1) — — (100,939 ) Valuation allowance 4,096,353 — — Reduction of deferred tax asset related to Tax Legislation 1,755,823 — — Travel and entertainment 12,458 34,743 35,010 Other 47,452 (5,299 ) 10,491 $ 5,416,646 $ (1,022,808 ) $ (573,351 ) (1) Relates to the correction of error from the fiscal 2016 tax provision as the net impact was not material.

Employee Profit Sharing Plan

Employee Profit Sharing Plan	12 Months Ended
	Jun. 30, 2018
Employee Profit Sharing Plan
Employee Profit Sharing Plan	10. Employee Profit Sharing Plan The Company sponsors a retirement plan pursuant to Section 401(k) of the Internal Revenue Code of 1986, as amended (the “Code”) for all full-time employees. Participants may contribute a percentage of compensation not to exceed the maximum allowed under the Code, which was $24,000 if the employee was over 50 years of age for the year ended June 30, 2018. The plan provides for a matching contribution by the Company of 10% of annual eligible compensation contributed by the participants based on years of service, which amounted to $58,162, $57,465 and $52,145 for the fiscal years ended June 30, 2018, 2017 and 2016, respectively.

Segment Reporting

Segment Reporting	12 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Segment Reporting	11. 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 products is categorized as follows: For the Year Ended June 30, 2018 2017 2016 Total Consumables $ 23,596,476 $ 20,328,676 $ 16,091,651 Equipment 9,073,350 6,941,287 7,021,543 License 4,010,000 — — Total $ 36,679,826 $ 27,269,963 $ 23,113,194 Domestic: Consumables $ 17,735,749 $ 14,866,772 $ 11,277,449 Equipment 2,308,614 1,593,999 1,809,357 License — — — Total $ 20,044,363 $ 16,460,771 $ 13,086,806 International: Consumables $ 5,860,727 $ 5,461,904 $ 4,814,202 Equipment 6,764,736 5,347,288 5,212,186 License 4,010,000 — — Total $ 16,635,463 $ 10,809,192 $ 10,026,388 Substantially all of the Company’s long-lived assets are located in the United States.

Quarterly Results (unaudited)

Quarterly Results (unaudited)	12 Months Ended
	Jun. 30, 2018
Quarterly Financial Information Disclosure [Abstract]
Quarterly Results (unaudited)	12. Quarterly Results (unaudited) Fiscal 2018 Q1 Q2 Q3 Q4 Year Revenue Product $ 7,280,723 $ 8,323,845 $ 8,429,132 $ 8,636,126 $ 32,669,826 License — — 4,010,000 — 4,010,000 Total revenue 7,280,723 8,323,845 12,439,132 8,636,126 36,679,826 Cost of goods sold 2,177,355 2,465,826 2,631,893 2,519,824 9,794,898 Gross profit 5,103,368 5,858,019 9,807,239 6,116,302 26,884,928 Operating expenses: Selling expenses 3,570,713 3,919,515 4,447,421 4,430,732 16,368,381 General and administrative expenses 2,573,131 2,380,860 1,925,086 2,184,062 9,063,139 Research and development expenses 901,274 957,204 1,199,895 1,335,776 4,394,149 Total operating expenses 7,045,118 7,257,579 7,572,402 7,950,570 29,825,669 Income (loss) from operations (1,941,750 ) (1,399,560 ) 2,234,837 (1,834,268 ) (2,940,741 ) Other income (expense): Interest income 13 45 9,074 16,991 26,123 Royalty income and license fees 452,971 71,550 916 1 525,438 Other (4,458 ) (4,387 ) (5,712 ) 16,831 2,274 Total other income 448,526 67,208 4,278 33,823 553,835 — Loss from continuing operations before income taxes (1,493,224 ) (1,332,352 ) 2,239,115 (1,800,445 ) (2,386,906 ) — Income tax expense (benefit) (281,000 ) 5,524,422 — 173,224 5,416,646 — Net income from continuing operations (1,212,224 ) (6,856,774 ) 2,239,115 (1,973,669 ) (7,803,552 ) Income from discontinued operations net of tax — — — 191,117 191,117 Net loss $ (1,212,224 ) $ (6,856,774 ) $ 2,239,115 $ (1,782,552 ) $ (7,612,435 ) Net income (loss) per share: Continuing operations: Basic $ (0.14 ) $ (0.76 ) $ 0.24 $ (0.22 ) $ (0.87 ) Diluted $ (0.14 ) $ (0.76 ) $ 0.23 $ (0.22 ) $ (0.87 ) Discontinued operations Basic $ — $ — $ — $ 0.02 $ 0.02 Diluted $ — $ — $ — $ 0.02 $ 0.02 Combined Basic $ (0.14 ) $ (0.76 ) $ 0.24 $ (0.20 ) $ (0.85 ) Diluted $ (0.14 ) $ (0.76 ) $ 0.23 $ (0.20 ) $ (0.85 ) Weighted average shares - Basic 8,958,405 8,977,984 9,028,506 9,037,046 9,009,189 Weighted average shares - Diluted 8,958,405 8,977,984 9,549,144 9,037,046 9,009,189 Fiscal 2017 Q1 Q2 Q3 Q4 Year Revenue $ 6,171,625 $ 6,030,380 $ 7,177,763 $ 7,890,195 $ 27,269,963 Cost of goods sold 1,912,007 1,818,672 2,112,099 2,374,661 8,217,439 Gross profit 4,259,618 4,211,708 5,065,664 5,515,534 19,052,524 Operating expenses: Selling expenses 3,325,687 3,271,134 3,587,859 4,036,227 14,220,907 General and administrative expenses 1,931,821 2,087,419 2,484,962 3,091,004 9,595,206 Research and development expenses 492,084 440,364 465,863 439,186 1,837,497 Total operating expenses 5,749,592 5,798,917 6,538,684 7,566,417 25,653,610 Loss from operations (1,489,974 ) (1,587,209 ) (1,473,020 ) (2,050,883 ) (6,601,086 ) Other income/(expense): Interest income 19 19 18 19 75 Royalty income and license fees 944,068 949,048 953,235 925,259 3,771,610 Other (1,996 ) (6,640 ) (6,940 ) (20,635 ) (36,211 ) Total other income 942,091 942,427 946,313 904,643 3,735,474 (Loss) from continuing operations before income taxes (547,883 ) (644,782 ) (526,707 ) (1,146,240 ) (2,865,612 ) Income tax (benefit) (26,000 ) (30,000 ) (219,000 ) (747,808 ) (1,022,808 ) Net (loss) from continuing operations $ (521,883 ) $ (614,782 ) $ (307,707 ) $ (398,432 ) $ (1,842,804 ) Net income from discontinued operations: Net income (loss) from discontinued operations, net of tax — — 161,861 (236 ) 161,625 Net income from discontinued operations — — 161,861 (236 ) 161,625 Net (loss) $ (521,883 ) $ (614,782 ) $ (145,846 ) $ (398,668 ) $ (1,681,179 ) Net (loss) per share from continuing operations - Basic $ (0.07 ) $ (0.07 ) $ (0.04 ) $ (0.05 ) $ (0.22 ) Net income per share from discontinued operations - Basic — — 0.02 — 0.02 Net (loss) per share - Basic $ (0.07 ) $ (0.07 ) $ (0.02 ) $ (0.05 ) $ (0.20 ) Net (loss) per share from continuing operations - Diluted $ (0.07 ) $ (0.07 ) $ (0.04 ) $ (0.05 ) $ (0.22 ) Net income per share from discontinued operations - Diluted — — 0.02 — 0.02 Net (loss) per share - Diluted $ (0.07 ) $ (0.07 ) $ (0.02 ) $ (0.05 ) $ (0.20 ) Weighted average shares - Basic 7,809,385 8,374,900 8,613,354 8,806,570 8,398,778 Weighted average shares - Diluted 7,809,385 8,374,900 8,613,354 8,806,570 8,398,778

Schedule II

Schedule II	12 Months Ended
	Jun. 30, 2018
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]
Schedule II	Schedule II Description Balance at Additions (Deductions) Balance at Allowance for doubtful accounts years ended June 30: 2018 $ 96,868 $ 103,132 $ — $ 200,000 2017 $ 96,868 $ — $ — $ 96,868 2016 $ 126,868 $ (30,000 ) (A) $ — $ 96,868 (A) Reduction in allowance for doubtful accounts due to adjustment in reserve balance. Description Balance at Additions (Deductions) Balance at Deferred tax valuation allowance years ended June 30: 2018 $ 628,730 $ 3,467,623 $ 4,096,353 2017 $ 628,730 — — $ 628,730 2016 $ 628,730 $ — $ — $ 628,730

Basis of Presentation, Organi21

Basis of Presentation, Organization and Business and Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation These 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.
Organization and Business	Organization and Business Misonix designs, manufactures, develops and markets therapeutic ultrasonic devices. These products are used for precise bone sculpting, removal of soft tumors, and tissue debridement in the fields of orthopedic surgery, plastic surgery, neurosurgery, podiatry and vascular surgery. In the United States, our products are marketed primarily through a hybrid sales approach. This includes direct sales representatives, managed by regional sales managers, along with independent distributors. Outside the United States, we sell BoneScalpel and SonaStar to specialty distributors who purchase products from us to resell to their clinical customer bases. We sell to all major markets in the Americas, Europe, Middle East, Asia Pacific and Africa. The Company operates as one business segment.
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 will 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 June 30, 2018 were $2,542,579.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. All of the Company’s cash is maintained in bank accounts and accordingly it does not have cash equivalents at June 30, 2018. The Company’s cash balance at June 30, 2018 was $10,979,455. The Company maintains cash balances at various financial institutions. At June 30, 2018, these financial institutions held cash that was approximately $10,729,455 in excess of amounts insured by the Federal Deposit Insurance Corporation and other government agencies.
Major Customers and Concentration of Credit Risk	Major Customers and Concentration of Credit Risk Included in sales from continuing operations are sales to the Company distributor of SonaStar in China of $6,969,258, $0 and $0, for the fiscal years ended June 30, 2018, 2017 and 2016, respectively, inclusive of product licensing fees of $4,010,000. Accounts receivable from this customer were $293,915 at June 30, 2018. Total royalties from Medtronic Minimally Invasive Therapies (“MMIT”) related to their sales of the Company’s ultrasonic cutting and sculpting products, which use high frequency sound waves to coagulate and divide tissue for both open and laparoscopic surgery, were $525,000, $3,764,000 and $3,903,000 for the fiscal years ended June 30, 2018, 2017 and 2016, respectively. Accounts receivable from MMIT royalties were $0 and $925,000 at June 30, 2018 and 2017, respectively. The license agreement with MMIT expired in August 2017. At June 30, 2018 and 2017, the Company’s accounts receivable with customers outside the United States were approximately $1,630,000 and $860,000, respectively, none of which is over 90 days.
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.
Accounts Receivable	Accounts Receivable Accounts receivable, principally trade, are generally due within 30 to 90 days and are stated at amounts due from customers, net of an allowance for doubtful accounts. The Company performs ongoing credit evaluations and adjusts credit limits based upon payment history and the customer’s current credit worthiness, as determined by a review of their current credit information. The Company continuously monitors aging reports, collections and payments from customers and maintains a provision for estimated credit losses based upon historical experience and any specific customer collection issues that have been identified. While such credit losses have historically been within expectations and the provisions established, the Company cannot guarantee that the same credit loss rates will be experienced in the future. The Company writes off accounts receivable when they become uncollectible.
Inventories	Inventories Inventories are stated at the lower of cost (first-in, first-out) or net realizable value and consist of raw materials, work-in process and finished goods and include purchased materials, direct labor and manufacturing overhead. Management evaluates the need to record adjustments to write down inventory to the lower of cost or net realizable value on a quarterly basis. The Company’s policy is to assess the valuation of all inventories, including raw materials, work-in-process and finished goods and it writes down its inventory for estimated obsolescence based upon the age of inventory and assumptions about future demand and usage. Inventory items used for demonstration purposes, rentals or on consignment are classified as property, plant and equipment.
Property, Plant and Equipment	Property, Plant and Equipment Property, plant and equipment are recorded at cost. Minor replacements and maintenance and repair expenses are charged to expense as incurred. Depreciation of property and equipment is provided using the straight-line method over estimated useful lives ranging from 3 to 5 years. Leasehold improvements are amortized over the life of the lease or the useful life of the related asset, whichever is shorter. The Company’s policy is to periodically evaluate the appropriateness of the lives assigned to property, plant and equipment and make adjustments if necessary. Inventory items included in property, plant and equipment are depreciated using the straight line method over estimated useful lives of 3 to 5 years. Depreciation of BoneScapel and Sonic OneOR generators which are consigned to customers are depreciated over a 5 year period, and depreciation is charged to selling expenses. See Note 4.
Revenue Recognition	Revenue Recognition The Company records revenue upon shipment for products shipped F.O.B. shipping point. Products shipped F.O.B. destination points are recorded as revenue when received at the point of destination. 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. Service contracts and royalty income are recognized when earned. The Company generally warrantees its product for a 12 month period, and accordingly records a related warranty reserve. Historical warranty costs have not been significant. The Company presents taxes collected from customers and remitted to governmental authorities in the consolidated statements of operations on a net basis. License revenue is recorded when 1) a contract has been executed, 2) the underlying intellectual property has been transferred, 3) the payment terms are identified and 4) the risk of a reversal of revenue from lack of receipt of consideration or other factors has passed. License revenue for the years ended June 30, 2018, 2017 and 2016 was $4,010,000, $0 and $0, respectively. On October 19, 2017, the Company entered into a License and Exclusive Manufacturing Agreement (the “Agreement”) with Hunan Xing Hang Rui Kang Bio-technologies Co., Ltd., a Chinese corporation (the “Licensee”or “Hunan” ) under which Misonix has licensed certain manufacturing and distribution rights to its SonaStar product line in China, Hong Kong and Macau (the “Territory”) in exchange for payments totaling at least $11,000,000. The Agreement with Hunan provides for the following three primary revenue streams: a) Sales of Misonix SonaStar products, totaling $990,000, which have been recognized as product revenue when the products were shipped. For the quarters ended September 30, 2017, December 31, 2017 and March 31, 2018, revenue of $270,000, $570,000 and $150,000, respectively, was recognized from these product shipments, which completed the initial product shipment requirement under the Agreement. b) A technology license fee of $4,010,000, relating to the granting of a technology license to Hunan, allowing Hunan to manufacture and sell SonaStar products in China. The applicable technology was delivered to Hunan in the quarter ended March 31, 2018, and the license fee was recorded in full in that quarter. This technology license fee will be accounted for as “Revenue - License” in our statement of operations in the quarter ended March 31, 2018. c) A royalty fee based on the number of generators manufactured and sold by Hunan in China during the initial 10 year term of the Agreement. For the calendar years 2019, 2020 and 2021, Hunan will pay a minimum royalty fee of $2 million per year. After 2021, there are no minimum royalties. These royalty payments will be recorded as “Revenue – Royalty” when the royalties are earned. In addition, the Agreement contains a provision allowing for Misonix to be reimbursed by Hunan for it’s out of pocket costs to assist Hunan with training to build the product, to the extent Hunan requests any training. We consider this option to be a substantive option which should be accounted for as a separate event as the event occurs rather than as a deliverable in the original arrangement. We also believe that this will be an immaterial portion of this contract. During the year ended June 30, 2018, the Company delivered the licensed SonaStar technology to the Licensee, and recorded license revenue of $4,010,000.
Long-Lived Assets	Long-Lived Assets The carrying values of intangible and other long-lived assets, excluding goodwill, are periodically reviewed to determine if any impairment indicators are present. If it is determined that such indicators are present and the review indicates that the assets will not be fully recoverable, based on undiscounted estimated cash flows over the remaining amortization and depreciation period, their carrying values are reduced to estimated fair value. Impairment indicators include, among other conditions, cash flow deficits, historic or anticipated decline in revenue or operating profit, adverse legal or regulatory developments, accumulation of costs significantly in excess of amounts originally expected to acquire the asset and a material decrease in the fair value of some or all of the assets. Assets are grouped at the lowest levels for which there are identifiable cash flows that are largely independent of the cash flows generated by other asset groups. No such impairment was deemed to exist in fiscal 2018 and 2017.
Goodwill	Goodwill Goodwill is not amortized. We review 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 this impairment test 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 also compares its market capitalization to the value of its goodwill to view for evidence of impairment. The Company completed its annual goodwill impairment tests for fiscal 2018 and 2017 as of June 30th each year. No impairment of goodwill was deemed to exist in fiscal 2018 and 2017.
Patents	Patents The cost of acquiring or processing patents is capitalized at cost. This amount is being amortized using the straight-line method over the estimated useful lives of the underlying assets, which is approximately 17 years. Patents totaled $757,447 and $719,136 at June 30, 2018 and 2017, respectively. Amortization expense for the years ended June 30, 2018, 2017 and 2016 was approximately $127,000, $110,000 and $94,000, respectively. The following is a schedule of estimated future patent amortization expense as of June 30, 2018 during the following fiscal years: 2019 $ 125,961 2020 101,483 2021 95,312 2022 62,765 2023 61,695 Thereafter 310,231 $ 757,447
Income Taxes	Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in those periods in which temporary differences become deductible. Should management determine that it is more likely than not that some portion of the deferred tax asset will not be realized, a valuation allowance against the deferred tax asset would be established in the period such determination was made. The Company recognizes a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. The Company classifies income tax related interest and penalties as a component of income tax expense.
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 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 weighted average shares outstanding and diluted weighted average shares outstanding: For the twelve months ended June 30, 2018 2017 2016 Basic weighted average shares outstanding 9,009,189 8,398,778 7,776,949 Dilutive effect of resticted stock awards (participating securities) — — — Denominator for basic earnings per share 9,009,189 8,398,778 7,776,949 Dilutive effect of stock options — — — Diluted weighted average shares outstanding 9,009,189 8,398,778 7,776,949 Diluted EPS for the three years ended June 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 211,801, 473,848, and 467,733 shares of common stock for the years ended June 30, 2018, 2017 and 2016, respectively. Also excluded from the calculation of both basic and diluted earnings per share for the years ended June 30, 2018 and 2017 are the 400,000 shares of restricted common stock which were issued in December 2016.
Research and Development	Research and Development All research and development expenses are expensed as incurred and are included in operating expenses.
Advertising Expense	Advertising Expense The cost of advertising is expensed in the period the advertising first takes place. The Company incurred approximately $0, $76,000 and $386,000 in advertising costs during the fiscal years ended June 30, 2018, 2017 and 2016, respectively. Advertising costs are reported in selling expenses on the statement of operations.
Depreciation Expense for Consigned Inventory	Depreciation Expense for Consigned Inventory The Company typically provides to its United States customers, on a consignment basis, the generators used to power its BoneScapel and SonicOne products. Title to these generators remains at all times with the Company. When these generators are deployed in the field at customer locations, the Company depreciates these units over a five year period and charges the depreciation to selling expenses. Depreciation expense relating to consigned generators for the three years ended June 30, 2018 was $487,000, $425,000 and $416,000, respectively. Prior to fiscal 2017, consigned units were depreciated over a three year period. The impact of this change in accounting estimate was a reduction in expense of approximately $283,000 for the year ended June 30, 2017, compared to what the expense would have been without this change.
Shipping and Handling	Shipping and Handling Shipping and handling fees for the fiscal years ended June 30, 2018, 2017 and 2016 were approximately $99,000, $119,000 and $109,000 respectively, and are reported as a component of net sales. Shipping and handling costs for the fiscal years ended June 30, 2018, 2017 and 2016 were approximately $289,000, $337,000 and $142,000, respectively, and are reported as a component of selling expenses.
Stock-Based Compensation	Stock-Based Compensation The Company measures compensation cost for all share based payments at fair value and recognizes the cost over the vesting period. The Company uses the Black-Scholes method to value awards and utilizes the straight line amortization method to recognize the expense associated with the awards with graded vesting terms.
Restricted Stock Awards	Restricted Stock Awards The Company measures compensation cost for all restricted stock awards at fair value and recognizes the cost over the vesting period. For awards that have market conditions, the Company uses the Monte Carlo valuation method to value awards and utilizes the straight line amortization method to recognize the expense associated with the awards with graded vesting terms. Where awards have performance conditions, the Company will determine the probability of achieving those conditions and will record compensation expense when it is probable that the conditions will be met.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (the “FASB”) issued ASC Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), which was subsequently updated. This purpose of the updated standard is to provide enhancements to the quality and consistency of revenue recognition between companies using U.S. GAAP and International Financial Reporting Standards. The new five-step recognition model introduces the core principle of recognizing revenue in an amount that reflects the consideration to which the entity expects to be entitled in exchange for the promised goods or services. When effective, as amended, ASU 2014-09 will require us to use either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients; or (ii) a modified retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures to describe the nature, amount, timing and uncertainty of revenue, certain costs and cash flows arising from our contracts with customers). This standard became effective for the Company on July 1, 2018 and we will adopt the new pronouncement under the modified retrospective approach. We have reviewed our various revenue streams within our reporting segment and have gathered data regarding the segregation of those revenue streams into the following types for analysis (i) sale of medical device products under standard ship and bill practices, (ii) consignment and leasing of medical device products, and (iii) licensing agreements related to medical technology. We have gathered data and quantified the amount of sales by type of revenue stream and categorized the types of sales for the purpose of comparing how we currently recognize revenue to the new standard in order to quantify the impact of this ASU. We have finalized our review on our medical device product sales and the consignment and leasing of medical devices. We generally anticipate having substantially similar performance obligations under the new guidance as compared with deliverables and units of account currently being recognized. We expect to recognize an immaterial adjustment to retained earnings reflecting the cumulative impact for the above described revenue streams. Due to the nature of the licensing agreements that the Company enters into, the revenue recognition treatment required under the new standard will depend on contract-specific terms. The Company is in the process of concluding on the impact that the standard will have on this revenue stream and will need to consistently evaluate the nature of any implicit price concession granted on a major license and IP agreement with the Company’s Chinese partner which will impact the timing of royalty revenue to be recorded under the contract. This may result in revenue being recognized on this license earlier than current practice although such revenue has not yet been recorded and the Company has not yet concluded on any necessary adjustment to retained earnings upon adoption. In February 2016, the FASB issued guidance on lease accounting requiring lessees to recognize a right-of-use asset and a lease liability for long-term leases. The liability will be equal to the present value of lease payments. This guidance must be applied using a modified retrospective transition approach to all annual and interim periods presented and is effective for the Company beginning in fiscal 2019. The Company is currently in the early stages of evaluating this guidance to determine the impact it will have on its consolidated financial statements. In August 2016, the FASB issued guidance on the Statement of Cash Flows Classification of certain cash receipts and cash payments (a consensus of the Emerging Issues Task Force). This guidance addresses the following eight specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. This guidance will be effective for the Company beginning in fiscal 2019. As this guidance only affects the classification within the statement of cash flows, ASU 2016-15 is not expected to have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations: Clarifying the Definition of a Business 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 March 2016, the FASB issued Accounting Standards Update No. 2016-09 “Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” intended to simplify several aspects of accounting for share-based payment transactions. The Company adopted these amendments beginning in the first quarter of fiscal 2018. The guidance requires that all excess tax benefits and tax deficiencies previously recorded as additional paid-in capital be prospectively recorded in income tax expense. The guidance allows for an increase in the threshold for net share settlement up to the maximum statutory rate in employees’ applicable jurisdictions without triggering liability classification. The adoption of this guidance had an immaterial impact on income taxes on the Company’s Consolidated Statement of Operations for the year ended June 30, 2018. The Company elected to apply the presentation requirement for cash flows related to excess tax benefits prospectively, which had an immaterial impact on both net cash from operating activities and net cash used in financing activities for the year ended June 30, 2018. The presentation requirements for cash flows related to employee taxes paid for withheld shares had no impact on any of the periods presented on the Company’s Consolidated Statements of Cash Flows since such cash flows have historically been presented as a financing activity. Finally, the Company has elected to account for forfeitures as they occur, rather than estimate expected forfeitures. As a result, the Company recorded the cumulative impact of $908,875 as an increase to Deferred Income Taxes with a corresponding decrease to Accumulated Deficit.

Basis of Presentation, Organi22

Basis of Presentation, Organization and Business and Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Schedule of estimated future patent amortization expense	The following is a schedule of estimated future patent amortization expense as of June 30, 2018 during the following fiscal years: 2019 $ 125,961 2020 101,483 2021 95,312 2022 62,765 2023 61,695 Thereafter 310,231 $ 757,447
Schedule of number of weighted average common shares used in the calculation of Basic EPS and Diluted EPS	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 weighted average shares outstanding and diluted weighted average shares outstanding: For the twelve months ended June 30, 2018 2017 2016 Basic weighted average shares outstanding 9,009,189 8,398,778 7,776,949 Dilutive effect of resticted stock awards (participating securities) — — — Denominator for basic earnings per share 9,009,189 8,398,778 7,776,949 Dilutive effect of stock options — — — Diluted weighted average shares outstanding 9,009,189 8,398,778 7,776,949

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
Schedule of inventories	Inventories are summarized as follows: June 30, June 30, Raw material $ 3,540,205 $ 2,409,148 Work-in-process 180,442 741,994 Finished goods 1,743,497 3,267,232 5,464,144 6,418,374 Less valuation reserve 444,258 1,425,940 $ 5,019,886 $ 4,992,434

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	12 Months Ended
	Jun. 30, 2018
Property, Plant and Equipment [Abstract]
Schedule of property, plant and equipment	Property, plant and equipment consist of the following: June 30, June 30, Demonstration and consignment inventory $ 8,227,878 $ 6,951,583 Machinery and equipment 2,582,244 2,452,363 Furniture and fixtures 1,464,325 1,406,758 Leasehold improvements 691,751 691,751 Software systems 223,087 — Automobiles 22,328 22,328 13,211,613 11,524,783 Less: accumulated depreciation and amortization (9,023,235 ) (7,794,580 ) $ 4,188,378 $ 3,730,203

Accrued Expenses and Other Cu25

Accrued Expenses and Other Current Liabilities (Tables)	12 Months Ended
	Jun. 30, 2018
Payables and Accruals [Abstract]
Schedule of accrued expenses and other current liabilities	The following summarizes accrued expenses and other current liabilities: June 30, June 30, Accrued payroll, payroll taxes and vacation $ 351,435 $ 715,245 Accrued bonus 552,988 343,400 Accrued commissions 742,807 751,000 Professional fees 102,065 662,537 Litigation settlement — 500,000 Deferred income 13,303 27,901 Deferred foreign taxes 401,000 — Vendor and sales tax accruals 648,574 346,055 $ 2,812,172 $ 3,346,138

Stock-Based Compensation Plans

Stock-Based Compensation Plans (Tables)	12 Months Ended
	Jun. 30, 2018
Equity [Abstract]
Schedule of Share-based compensation plan	At June 30, 2018, the Company had outstanding equity-linked grants under eight stock-based compensation plans (the “Plans”), as follows: Plan Initial Granted Exercised Expired / Outstanding Available 2001 Employee Stock Option Plan 1,000,000 1,251,261 376,368 868,955 5,938 — 2005 Employee Equity Incentive Plan 500,000 547,125 490,550 48,925 7,650 — 2005 Non Employee Director Stock Option Plan 200,000 195,000 112,500 37,500 45,000 — 2009 Employee Equity Incentive Plan 500,000 624,925 386,350 125,600 112,975 675 2009 Non Employee Director Stock Option Plan 200,000 225,000 56,250 75,000 93,750 50,000 2012 Employee Equity Incentive Plan 500,000 695,000 122,370 196,000 376,630 1,000 2012 Non Employee Director Stock Option Plan 200,000 222,500 3,750 45,000 173,750 22,500 2014 Employee Equity Incentive Plan 750,000 505,000 3,625 158,875 342,500 3,875 2017 Equity Incentive Plan 750,000 172,000 — — 172,000 578,000 Total 1,330,193 656,050
Schedule of weighted average fair value at date of grant for options	The weighted average fair value at date of grant for options granted during the fiscal years ended June 30, 2018, 2017 and 2016 was $5.50, $4.46 and $4.68 per share, respectively. The fair value was estimated based on the weighted average assumptions of: For the three years ended June 30, 2018 2017 2016 Risk-free interest rates 1.98 % 1.80 % 1.71 % Expected option life in years 5.95 6.25 6.25 Expected stock price volatility 57.42 % 54.68 % 55.41 % Expected dividend yield 0 % 0 % 0 %
Schedule of summary of option activity	A summary of option activity under the Plans as of June 30, 2018, 2017 and 2016, and changes during the years ended on those dates is presented below: Options Outstanding Weighted Aggregate Outstanding as of June 30, 2015 1,557,616 5.80 $ 6,553,821 Vested and exercisable at June 30, 2015 620,256 3.19 $ 3,911,604 Granted 320,000 8.80 Exercised (82,737 ) 4.60 Forfeited (4,375 ) 9.23 Expired (280 ) 5.82 Outstanding as of June 30, 2016 1,790,224 $ 6.38 $ 1,675,072 Vested and exercisable at June 30, 2016 813,349 $ 3.82 $ 1,501,208 Granted 327,500 8.34 Exercised (527,663 ) 3.30 Forfeited (383,625 ) 8.23 Expired (15,200 ) 8.51 Outstanding as of June 30, 2017 1,191,236 $ 7.66 $ 2,748,956 Vested and exercisable at June 30, 2017 517,361 $ 6.33 $ 1,923,794 Granted 305,500 10.10 Exercised (76,418 ) 5.47 Forfeited (15,125 ) 7.89 Expired (75,000 ) 4.87 Outstanding as of June 30, 2018 1,330,193 $ 8.47 $ 5,369,557 Vested and exercisable at June 30, 2018 681,316 $ 7.67 $ 3,355,240

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Schedule of future minimum lease payments	The following is a schedule of future minimum lease payments, by year and in the aggregate, under operating leases with initial or remaining terms of one year or more at June 30, 2018: Operating 2019 $ 359,353 2020 115,324 2021 12,488 2022 — Total mimimun lease payments $ 487,165

Related Party Transactions (Tab

Related Party Transactions (Tables)	12 Months Ended
	Jun. 30, 2018
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 years ended June 30 and accounts receivable at June 30 for the indicated time periods below with OrthoXact: For the years ended June 30: Applied BioSurgical 2018 2017 2016 Sales $ 999,719 $ 580,888 $ 559,787 Accounts receivable $ 239,062 $ 192,984 $ 272,421

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Schedule of deferred tax assets and liabilities	The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below: June 30, 2018 2017 Deferred tax assets / (liabilities) Bad debt reserves $ 45,817 $ 34,243 Inventory reserves 194,363 676,733 Accruals and allowances 18,938 269,539 Net operating loss carryforwards 2,738,775 3,500,826 Tax credits 496,898 455,916 Foreign tax credits 401,000 — Stock based compensation 516,733 451,892 Deferred gain - HIFU and Labcaire 91,862 149,222 Amortization (378,818 ) (594,306 ) Depreciation (36,088 ) 16,030 Other 6,873 3,182 4,096,353 4,963,277 Valuation Allowance (4,096,353 ) (628,730 ) Total net deferred tax assets $ — $ 4,334,547
Schedule of significant components of the income tax expense (benefit)	Significant components of the income tax expense (benefit) attributable to continuing operations are as follows: Year Ended June 30, 2018 2017 2016 Current: Federal $ — $ — $ 4,962 Foreign 401,000 5,424 17,012 Total current 401,000 5,424 21,974 Deferred: Federal 5,116,778 (990,016 ) (558,133 ) State (101,132 ) (38,216 ) (37,192 ) Total deferred 5,015,646 (1,028,232 ) (595,325 ) $ 5,416,646 $ (1,022,808 ) $ (573,351 )
Schedule of reconciliation of income tax expense (benefit)	The reconciliation of income tax expense (benefit) computed at the Federal statutory tax rates to income tax expense (benefit) is as follows: Year ended June 30, 2018 2017 2016 Tax at federal statutory rates $ (483,207 ) $ (974,308 ) $ (646,828 ) State income taxes, net of federal benefit (102,812 ) (34,636 ) (13,319 ) Research credit (216,099 ) (50,000 ) (49,593 ) Stock-based compensation 306,678 6,692 191,827 Deferred tax asset adjustments (1) — — (100,939 ) Valuation allowance 4,096,353 — — Reduction of deferred tax asset related to Tax Legislation 1,755,823 — — Travel and entertainment 12,458 34,743 35,010 Other 47,452 (5,299 ) 10,491 $ 5,416,646 $ (1,022,808 ) $ (573,351 )

Segment Reporting (Tables)

Segment Reporting (Tables)	12 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Schedule of revenue	Worldwide revenue for the Company’s products is categorized as follows: For the Year Ended June 30, 2018 2017 2016 Total Consumables $ 23,596,476 $ 20,328,676 $ 16,091,651 Equipment 9,073,350 6,941,287 7,021,543 License 4,010,000 — — Total $ 36,679,826 $ 27,269,963 $ 23,113,194 Domestic: Consumables $ 17,735,749 $ 14,866,772 $ 11,277,449 Equipment 2,308,614 1,593,999 1,809,357 License — — — Total $ 20,044,363 $ 16,460,771 $ 13,086,806 International: Consumables $ 5,860,727 $ 5,461,904 $ 4,814,202 Equipment 6,764,736 5,347,288 5,212,186 License 4,010,000 — — Total $ 16,635,463 $ 10,809,192 $ 10,026,388

Quarterly Results (unaudited) (

Quarterly Results (unaudited) (Tables)	12 Months Ended
	Jun. 30, 2018
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]
Schedule of quarterly results	Fiscal 2018 Q1 Q2 Q3 Q4 Year Revenue Product $ 7,280,723 $ 8,323,845 $ 8,429,132 $ 8,636,126 $ 32,669,826 License — — 4,010,000 — 4,010,000 Total revenue 7,280,723 8,323,845 12,439,132 8,636,126 36,679,826 Cost of goods sold 2,177,355 2,465,826 2,631,893 2,519,824 9,794,898 Gross profit 5,103,368 5,858,019 9,807,239 6,116,302 26,884,928 Operating expenses: Selling expenses 3,570,713 3,919,515 4,447,421 4,430,732 16,368,381 General and administrative expenses 2,573,131 2,380,860 1,925,086 2,184,062 9,063,139 Research and development expenses 901,274 957,204 1,199,895 1,335,776 4,394,149 Total operating expenses 7,045,118 7,257,579 7,572,402 7,950,570 29,825,669 Income (loss) from operations (1,941,750 ) (1,399,560 ) 2,234,837 (1,834,268 ) (2,940,741 ) Other income (expense): Interest income 13 45 9,074 16,991 26,123 Royalty income and license fees 452,971 71,550 916 1 525,438 Other (4,458 ) (4,387 ) (5,712 ) 16,831 2,274 Total other income 448,526 67,208 4,278 33,823 553,835 — Loss from continuing operations before income taxes (1,493,224 ) (1,332,352 ) 2,239,115 (1,800,445 ) (2,386,906 ) — Income tax expense (benefit) (281,000 ) 5,524,422 — 173,224 5,416,646 — Net income from continuing operations (1,212,224 ) (6,856,774 ) 2,239,115 (1,973,669 ) (7,803,552 ) Income from discontinued operations net of tax — — — 191,117 191,117 Net loss $ (1,212,224 ) $ (6,856,774 ) $ 2,239,115 $ (1,782,552 ) $ (7,612,435 ) Net income (loss) per share: Continuing operations: Basic $ (0.14 ) $ (0.76 ) $ 0.24 $ (0.22 ) $ (0.87 ) Diluted $ (0.14 ) $ (0.76 ) $ 0.23 $ (0.22 ) $ (0.87 ) Discontinued operations Basic $ — $ — $ — $ 0.02 $ 0.02 Diluted $ — $ — $ — $ 0.02 $ 0.02 Combined Basic $ (0.14 ) $ (0.76 ) $ 0.24 $ (0.20 ) $ (0.85 ) Diluted $ (0.14 ) $ (0.76 ) $ 0.23 $ (0.20 ) $ (0.85 ) Weighted average shares - Basic 8,958,405 8,977,984 9,028,506 9,037,046 9,009,189 Weighted average shares - Diluted 8,958,405 8,977,984 9,549,144 9,037,046 9,009,189 Fiscal 2017 Q1 Q2 Q3 Q4 Year Revenue $ 6,171,625 $ 6,030,380 $ 7,177,763 $ 7,890,195 $ 27,269,963 Cost of goods sold 1,912,007 1,818,672 2,112,099 2,374,661 8,217,439 Gross profit 4,259,618 4,211,708 5,065,664 5,515,534 19,052,524 Operating expenses: Selling expenses 3,325,687 3,271,134 3,587,859 4,036,227 14,220,907 General and administrative expenses 1,931,821 2,087,419 2,484,962 3,091,004 9,595,206 Research and development expenses 492,084 440,364 465,863 439,186 1,837,497 Total operating expenses 5,749,592 5,798,917 6,538,684 7,566,417 25,653,610 Loss from operations (1,489,974 ) (1,587,209 ) (1,473,020 ) (2,050,883 ) (6,601,086 ) Other income/(expense): Interest income 19 19 18 19 75 Royalty income and license fees 944,068 949,048 953,235 925,259 3,771,610 Other (1,996 ) (6,640 ) (6,940 ) (20,635 ) (36,211 ) Total other income 942,091 942,427 946,313 904,643 3,735,474 (Loss) from continuing operations before income taxes (547,883 ) (644,782 ) (526,707 ) (1,146,240 ) (2,865,612 ) Income tax (benefit) (26,000 ) (30,000 ) (219,000 ) (747,808 ) (1,022,808 ) Net (loss) from continuing operations $ (521,883 ) $ (614,782 ) $ (307,707 ) $ (398,432 ) $ (1,842,804 ) Net income from discontinued operations: Net income (loss) from discontinued operations, net of tax — — 161,861 (236 ) 161,625 Net income from discontinued operations — — 161,861 (236 ) 161,625 Net (loss) $ (521,883 ) $ (614,782 ) $ (145,846 ) $ (398,668 ) $ (1,681,179 ) Net (loss) per share from continuing operations - Basic $ (0.07 ) $ (0.07 ) $ (0.04 ) $ (0.05 ) $ (0.22 ) Net income per share from discontinued operations - Basic — — 0.02 — 0.02 Net (loss) per share - Basic $ (0.07 ) $ (0.07 ) $ (0.02 ) $ (0.05 ) $ (0.20 ) Net (loss) per share from continuing operations - Diluted $ (0.07 ) $ (0.07 ) $ (0.04 ) $ (0.05 ) $ (0.22 ) Net income per share from discontinued operations - Diluted — — 0.02 — 0.02 Net (loss) per share - Diluted $ (0.07 ) $ (0.07 ) $ (0.02 ) $ (0.05 ) $ (0.20 ) Weighted average shares - Basic 7,809,385 8,374,900 8,613,354 8,806,570 8,398,778 Weighted average shares - Diluted 7,809,385 8,374,900 8,613,354 8,806,570 8,398,778

Basis of Presentation, Organi32

Basis of Presentation, Organization and Business and Summary of Significant Accounting Policies (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017
Finite-Lived Intangible Assets [Line Items]
Total	$ 757,447	$ 719,136
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
2,019	125,961
2,020	101,483
2,021	95,312
2,022	62,765
2,023	61,695
Thereafter	310,231
Total	$ 757,447	$ 719,136

Basis of Presentation, Organi33

Basis of Presentation, Organization and Business and Summary of Significant Accounting Policies (Details 1) - shares	Dec. 22, 2017	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Accounting Policies [Abstract]
Basic weighted average shares outstanding									9,009,189	8,398,778	7,776,949
Dilutive effect of resticted stock awards (participating securities)
Denominator for basic earnings per share	8,977,984	9,037,046	9,028,506	8,958,405	8,806,570	8,613,354	8,374,900	7,809,385	9,009,189	8,398,778	7,776,949
Dilutive effect of stock options
Diluted weighted average shares outstanding	8,977,984	9,037,046	9,549,144	8,958,405	8,806,570	8,613,354	8,374,900	7,809,385	9,009,189	8,398,778	7,776,949

Basis of Presentation, Organi34

Basis of Presentation, Organization and Business and Summary of Significant Accounting Policies (Details Narrative)	Dec. 22, 2017USD ($)	Oct. 19, 2017USD ($)Number	May 10, 2010USD ($)	Dec. 31, 2016shares	Jun. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Sep. 30, 2017USD ($)	Jun. 30, 2017USD ($)	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Sep. 30, 2016USD ($)	Jun. 30, 2018USD ($)Segmentshares	Jun. 30, 2017USD ($)shares	Jun. 30, 2016USD ($)shares
Ownership percentage					100.00%								100.00%
Number of operating segment | Segment													1
Cash and cash equivalents					$ 10,979,455								$ 10,979,455
Cash held uninsured amount					10,729,455								10,729,455
Sales from continuing operations	$ 8,323,845				8,636,126	$ 12,439,132		$ 7,280,723	$ 7,890,195	$ 7,177,763	$ 6,030,380	$ 6,171,625	36,679,826	$ 27,269,963	$ 23,113,194
Accounts receivable					293,915								293,915
Finite lived intangible assets, net					757,447				719,136				$ 757,447	$ 719,136
Excluded from the calculation of diluted EPS | shares													211,801	473,848	467,733
Advertising expense													$ 0	$ 76,000	$ 386,000
Shipping and handling fees	$ 2,465,826				2,519,824	2,631,893		2,177,355	2,374,661	$ 2,112,099	$ 1,818,672	$ 1,912,007	9,794,898	8,217,439	7,640,626
Deferred income taxes													908,875
Payments of manufacturing and distribution rights													165,388	224,394	$ 132,731
Restricted Stock [Member]
Excluded from the calculation of diluted EPS | shares				400,000
Generators [Member]
Estimated useful lives															P3Y
Depreciation expense													$ 487,000	425,000	$ 416,000
Impact of change in accounting estimate reduction in expenses														283,000
Distribution Rights [Member]
Payments of manufacturing and distribution rights		$ 11,000,000
Amount of upfront fees and stocking orders		5,000,000
Monthly installments of upfront fees and stocking orders		$ 1,000,000
Number of monthly installments | Number		5
Minimum royalty payments in 2019		$ 2,000,000
Minimum royalty payments in 2020		2,000,000
Minimum royalty payments in 2021		2,000,000
Reimbursement of technology transfer costs		$ 1,000,000
Patents [Member]
Intangible assets estimated useful lives													17 years
Finite lived intangible assets, net					757,447				719,136				$ 757,447	719,136
Amortization expense													$ 127,000	110,000	94,000
BoneScapel Generators [Member]
Estimated useful lives													P5Y
Sonic OneOR Generators [Member]
Estimated useful lives													P5Y
Shipping and Handling [Member] | Net Sales [Member]
Shipping and handling fees													$ 99,000	119,000	109,000
Shipping and Handling [Member] | Selling Expenses [Member]
Shipping and handling fees													289,000	337,000	142,000
Royalty [Member]
Royalty fee													$ 2,000,000
Term of the Agreement													10 years
License [Member]
Sales from continuing operations						4,010,000							$ 4,010,000
Minimum [Member]
Estimated useful lives													P3Y
Maximum [Member]
Estimated useful lives													P5Y
International [Member]
Sales from continuing operations													$ 16,635,463	10,809,192	10,026,388
Accounts receivable					1,630,000				860,000				1,630,000	860,000
SonaCare Medical ("SonaCare") [Member]
Proceeds from sale of intangible assets			$ 5,800,000										2,542,579
Earn-out percentage			7.00%
Proceeds from sale of intangible assets			$ 3,000,000
Earn-out percentage			5.00%
Proceeds from sale of intangible assets			$ 5,800,000
Annual Royalty			$ 250,000
SonaStar Surgical Aspirator (SonaStar) [Member]
Sales from continuing operations													6,969,258	0	0
Medtronic Minimally Invasive Therapies ("MMIT) [Member]
Accounts receivable					$ 0				$ 925,000				0	$ 925,000
Medtronic Minimally Invasive Therapies ("MMIT) [Member] | License Agreement [Member]
Agreement expiration date														2017-08
Medtronic Minimally Invasive Therapies ("MMIT) [Member] | Royalty [Member] | License Agreement [Member]
Sales from continuing operations													525,000	$ 3,764,000	$ 3,903,000
SonaStar productSonaStar) [Member]
Sales from continuing operations						$ 150,000	$ 570,000	$ 270,000					$ 990,000

Inventories (Details)

Inventories (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017
Inventory Disclosure [Abstract]
Raw material	$ 3,540,205	$ 2,409,148
Work-in-process	180,442	741,994
Finished goods	1,743,497	3,267,232
Inventory, gross	5,464,144	6,418,374
Less valuation reserve	444,258	1,425,940
Inventory, net	$ 5,019,886	$ 4,992,434

Property, Plant and Equipment36

Property, Plant and Equipment (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 13,211,613	$ 11,524,783
Less: accumulated depreciation and amortization	(9,023,235)	(6,976,282)
Property, plant and equipment, net	4,188,378	3,730,203
Demonstration and consignment inventory [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	8,227,878	6,951,583
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	2,582,244	2,452,363
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	1,464,325	1,406,758
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	691,751	691,751
Software Systems [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	223,087
Automobiles [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 22,328	$ 22,328

Property, Plant and Equipment37

Property, Plant and Equipment (Details Narrative) - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
Depreciation and amortization	$ 1,300,000	$ 957,000	$ 1,339,000

Accrued Expenses and Other Cu38

Accrued Expenses and Other Current Liabilities (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017
Payables and Accruals [Abstract]
Accrued payroll, payroll taxes and vacation	$ 351,435	$ 715,245
Accrued bonus	552,988	343,400
Accrued commissions	742,807	751,000
Professional fees	102,065	662,537
Litigation settlement		500,000
Deferred income	13,303	27,901
Deferred foreign taxes	401,000
Vendor and sales tax accruals	648,574	346,055
Accrued expenses and other current liabilities	$ 2,812,172	$ 3,346,138

Stock-Based Compensation Plan39

Stock-Based Compensation Plans (Details) - shares	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted	305,500	327,500	320,000
Exercised	76,418	527,663	82,737
Outstanding	1,330,193	1,191,236	1,790,224	1,557,616
Available For Issuance	656,050
2001 Employee Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Initial Shares	1,000,000
Granted	1,251,261
Exercised	376,368
Expired/ Forfeited	868,955
Outstanding	5,938
Available For Issuance
2005 Employee Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Initial Shares	500,000
Granted	547,125
Exercised	490,550
Expired/ Forfeited	48,925
Outstanding	7,650
Available For Issuance
2005 Non Employee Director Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Initial Shares	200,000
Granted	195,000
Exercised	112,500
Expired/ Forfeited	37,500
Outstanding	45,000
Available For Issuance
2009 Employee Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Initial Shares	500,000
Granted	624,925
Exercised	386,350
Expired/ Forfeited	125,600
Outstanding	112,975
Available For Issuance	675
2009 Non Employee Director Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Initial Shares	200,000
Granted	225,000
Exercised	56,250
Expired/ Forfeited	75,000
Outstanding	93,750
Available For Issuance	50,000
2012 Employee Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Initial Shares	500,000
Granted	695,000
Exercised	122,370
Expired/ Forfeited	196,000
Outstanding	376,630
Available For Issuance	1,000
2012 Non Employee Director Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Initial Shares	200,000
Granted	222,500
Exercised	3,750
Expired/ Forfeited	45,000
Outstanding	173,750
Available For Issuance	22,500
2014 Employee Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Initial Shares	750,000
Granted	505,000
Exercised	3,625
Expired/ Forfeited	158,875
Outstanding	342,500
Available For Issuance	3,875
2017 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Initial Shares	750,000
Granted	172,000
Exercised
Expired/ Forfeited
Outstanding	172,000
Available For Issuance	578,000

Stock-Based Compensation Plan40

Stock-Based Compensation Plans (Details 1)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Equity [Abstract]
Risk-free interest rates	1.98%	1.80%	1.71%
Expected option life in years	5 years 11 months 12 days	6 years 3 months	6 years 3 months
Expected stock price volatility	57.42%	54.68%	55.41%
Expected dividend yield	0.00%	0.00%	0.00%

Stock-Based Compensation Plan41

Stock-Based Compensation Plans (Details 2) - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at beginning	1,191,236	1,790,224	1,557,616
Vested and exercisable at beginning	517,361	813,349	620,256
Granted	305,500	327,500	320,000
Excercised	(76,418)	(527,663)	(82,737)
Forfeited	(15,125)	(383,625)	(4,375)
Expired	(75,000)	(15,200)	(280)
Outstanding at ending	1,330,193	1,191,236	1,790,224
Vested and exercisable at ending	681,316	517,361	813,349
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Outstanding at beginning	$ 7.66	$ 6.38	$ 5.80
Vested and exercisable at beginning	6.33	3.82	3.19
Granted	10.1	8.34	8.80
Excercised	5.47	3.30	4.60
Forfeited	7.89	8.23	9.23
Expired	4.87	8.51	5.82
Outstanding at ending	8.47	7.66	6.38
Vested and exercisable at ending	$ 7.67	$ 6.33	$ 3.82
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value [Roll Forward]
Outstanding at beginning	$ 2,748,956	$ 1,675,072	$ 6,553,821
Vested and exercisable at beginning	1,923,794	1,501,208	6,553,821
Outstanding at ending	5,369,557	2,748,956	1,675,072
Vested and exercisable at ending	$ 3,355,240	$ 1,923,794	$ 1,501,208

Stock-Based Compensation Plan42

Stock-Based Compensation Plans (Details Narrative) - USD ($)	Dec. 15, 2016	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Compensation cost		$ 2,628,828	$ 1,086,139	$ 1,629,644
Unrecognized compensation cost		$ 4,617,767
Period of recognition			2 years 4 months 24 days
Option expiration period		2 years 9 months 18 days
Weighted average fair value at date of grant (in dollars per share)		$ 5.50	$ 4.46	$ 4.68
Fair value of shares vested		$ 1,553,905
Compensation expense		$ 2,248,649
Number of non-vested stock options		648,777	673,875
Weighted-average grant-date fair value of non-vested stock options (in dollars per share)		$ 5.08	$ 4.77
Amount of non-vested options forfeited			$ 625,202
Modified of certain stock options			81,765
Restricted Stock [Member]
Unrecognized compensation cost			$ 2,248,649
Restricted Stock [Member] | Chief Executive Officer [Member]
Option vesting period	5 years
Fair value of shares vested	$ 3,400,000
Compensation expense		$ 900,337
Number of stock issued	400,000
Description of restricted stock awards		At June 30, 2018, 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%.
Stock Options [Member]
Option expiration period		10 years
Option vesting period		4 years

Commitments and Contingencies43

Commitments and Contingencies (Details)	Jun. 30, 2018USD ($)
Commitments and Contingencies Disclosure [Abstract]
2,019	$ 359,353
2,020	115,324
2,021	12,488
2,022
Total minimum lease payments	$ 487,165

Commitments and Contingencies44

Commitments and Contingencies (Details Narrative) - USD ($)	Mar. 24, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Rent expense		$ 435,000	$ 428,000	$ 411,000
Settlement amount	$ 500,000
Former Chinese Distributor - FCPA [Member]
Investigative costs		250,000
Former Chinese Distributor - FCPA [Member] | General and Administrative Expense [Member]
Investigative costs		50,000	240,000	100,000
Inventories [Member]
Purchase and inventory commitments		$ 3,841,641	$ 2,859,718	$ 2,507,125
Office Equipment & Automobiles [Member]
Description of operating lease expiration term		Expiring through fiscal 2018.
Building [Member]
Rent expense		$ 28,000
Frequency of rent expense		Monthly

Related Party Transactions (Det

Related Party Transactions (Details) - Mr. Stavros G. Vizirgianakis [Member] - Applied BioSurgical [Member] - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Sales	$ 999,719	$ 580,888	$ 559,787
Accounts receivable	$ 239,062	$ 192,984	$ 272,421

Related Party Transactions (D46

Related Party Transactions (Details Narrative) - Mr. Stavros G. Vizirgianakis [Member] - Private Placement [Member]	Oct. 25, 2016USD ($)$ / sharesshares
Number of shares sold | shares	761,469
Share price (in dollars per share) | $ / shares	$ 5.253
Proceeds from stock sold | $	$ 4,000,000

Income Taxes (Details)

Income Taxes (Details) - USD ($)	Jun. 30, 2018	Jun. 30, 2017
Deferred tax assets / (liabilities)
Bad debt reserves	$ 45,817	$ 34,243
Inventory reserves	194,363	676,733
Accruals and allowances	18,938	269,539
Net operating loss carryforwards	2,738,775	3,500,826
Tax credits	496,898	455,916
Foreign tax credits	401,000
Stock based compensation	516,733	451,892
Deferred gain - HIFU and Labcaire	91,862	149,222
Amortization	(378,818)	(594,306)
Depreciation	(36,088)	16,030
Other	6,873	3,182
Total deferred tax assets liabilities non-current	4,096,353	4,963,277
Valuation Allowance	(4,096,353)	(628,730)
Total net deferred tax assets		$ 4,334,547

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($)	Dec. 22, 2017	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Current:
Federal											$ 4,962
Foreign									401,000	5,424	17,012
Total current									401,000	5,424	21,974
Deferred:
Federal	$ 1,755,823								5,116,778	(990,016)	(558,133)
State									(101,132)	(38,216)	(37,192)
Total deferred									5,015,646	(1,028,232)	(595,325)
Total income tax expense (benefit)	$ 5,524,422	$ 173,224		$ (281,000)	$ (747,808)	$ (219,000)	$ (30,000)	$ (26,000)	$ 5,416,646	$ (1,022,808)	$ (573,351)

Income Taxes (Details 2)

Income Taxes (Details 2) - USD ($)		Dec. 22, 2017	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Tax at federal statutory rates										$ (483,207)	$ (974,308)	$ (646,828)
State income taxes, net of federal benefit										(102,812)	(34,636)	(13,319)
Research credit										(216,099)	(50,000)	(49,593)
Stock-based compensation										306,678	6,692	191,827
Deferred tax asset adjustments	[1]											(100,939)
Valuation allowance										4,096,353
Reduction of deferred tax asset related to Tax Legislation										1,755,823
Travel and entertainment										12,458	34,743	35,010
Other										47,452	(5,299)	10,491
Total income tax expense (benefit)		$ 5,524,422	$ 173,224		$ (281,000)	$ (747,808)	$ (219,000)	$ (30,000)	$ (26,000)	$ 5,416,646	$ (1,022,808)	$ (573,351)
[1]	Relates to the correction of error from the fiscal 2016 tax provision as the net impact was not material.

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	Dec. 22, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Discrete tax expense	$ 1,755,823	$ 5,116,778	$ (990,016)	$ (558,133)
Description of statutory tax rate		The Tax Legislation reduces the U.S. statutory tax rate from 35% to 21%, effective January 1, 2018. U.S. tax law requires that taxpayers with a fiscal year that begins before and ends after the effective date of a rate change calculate a blended tax rate based on the pro rata number of days in the fiscal year before and after the effective date. As a result, for the fiscal year ending June 30, 2018, the Company’s statutory income tax rate will be 29.03%. For the fiscal year ended June 30, 2019, the Company’s statutory income tax rate is 27.55%.
Minimum tax credit		$ 169,000
Deferred tax assets, valuation allowance		4,096,353
Domestic operating loss carryforwards		12,175,000
U.S. federal net operating loss carryforwards		10,504,000
Unexpired carryforwards amount		1,671,000
Tax benefits related to exercised stock options		2,571,000
Research and development tax credits carryforwards		$ 497,000
U.S. deferred tax assets at lower	21.00%
Minimum [Member]
U.S. federal net operating loss carryforwards expiration year		2,031
Research and development net operating loss carryforwards expiration year		2,026
Maximum [Member]
U.S. federal net operating loss carryforwards expiration year		2,037
Research and development net operating loss carryforwards expiration year		2,038

Employee Profit Sharing Plan (D

Employee Profit Sharing Plan (Details Narrative) - Retirement Plan 401(k) [Member] - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Exceed age limit of employee	P50Y
Amount of maximum annual contributions by employee	$ 24,000
Pecentage of employer contribution	10.00%
Contribution amount	$ 58,162	$ 57,465	$ 52,145

Segment Reporting (Details)

Segment Reporting (Details) - USD ($)	Dec. 22, 2017	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Total	$ 8,323,845	$ 8,636,126	$ 12,439,132	$ 7,280,723	$ 7,890,195	$ 7,177,763	$ 6,030,380	$ 6,171,625	$ 36,679,826	$ 27,269,963	$ 23,113,194
Domestic [Member]
Total									20,044,363	16,460,771	13,086,806
International [Member]
Total									16,635,463	10,809,192	10,026,388
Consumables [Member]
Total									23,596,476	20,328,676	16,091,651
Consumables [Member] | Domestic [Member]
Total									17,735,749	14,866,772	11,277,449
Consumables [Member] | International [Member]
Total									5,860,727	5,461,904	4,814,202
Equipment [Member]
Total									9,073,350	6,941,287	7,021,543
Equipment [Member] | Domestic [Member]
Total									2,308,614	1,593,999	1,809,357
Equipment [Member] | International [Member]
Total									6,764,736	$ 5,347,288	$ 5,212,186
License [Member]
Total									4,010,000
License [Member] | Domestic [Member]
Total
License [Member] | International [Member]
Total									$ 4,010,000

Segment Reporting (Details Narr

Segment Reporting (Details Narrative)	12 Months Ended
	Jun. 30, 2018Segment
Segment Reporting [Abstract]
Number of operating segment	1

Quarterly Results (unaudited)54

Quarterly Results (unaudited) (Details) - USD ($)	Dec. 22, 2017	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
Total revenue	$ 8,323,845	$ 8,636,126	$ 12,439,132		$ 7,280,723	$ 7,890,195	$ 7,177,763	$ 6,030,380	$ 6,171,625	$ 36,679,826	$ 27,269,963	$ 23,113,194
Cost of goods sold	2,465,826	2,519,824	2,631,893		2,177,355	2,374,661	2,112,099	1,818,672	1,912,007	9,794,898	8,217,439	7,640,626
Gross profit	5,858,019	6,116,302	9,807,239		5,103,368	5,515,534	5,065,664	4,211,708	4,259,618	26,884,928	19,052,524	15,472,568
Operating expenses:
Selling expenses	3,919,515	4,430,732	4,447,421		3,570,713	4,036,227	3,587,859	3,271,134	3,325,687	16,368,381	14,220,907	12,632,961
General and administrative expenses	2,380,860	2,184,062	1,925,086		2,573,131	3,091,004	2,484,962	2,087,419	1,931,821	9,063,139	9,595,206	6,829,516
Research and development expenses	957,204	1,335,776	1,199,895		901,274	439,186	465,863	440,364	492,084	4,394,149	1,837,497	1,839,479
Total operating expenses	7,257,579	7,950,570	7,572,402		7,045,118	7,566,417	6,538,684	5,798,917	5,749,592	29,825,669	25,653,610	21,301,956
Loss from operations	(1,399,560)	(1,834,268)	2,234,837		(1,941,750)	(2,050,883)	(1,473,020)	(1,587,209)	(1,489,974)	(2,940,741)	(6,601,086)	(5,829,388)
Other income/(expense):
Interest income	45	16,991	9,074		13	19	18	19	19	26,123	75	81
Royalty income and license fees	71,550	1	916		452,971	925,259	953,235	949,048	944,068	525,438	3,771,610	3,948,757
Other	(4,387)	16,831	(5,712)		(4,458)	(20,635)	(6,940)	(6,640)	(1,996)	2,274	(36,211)	(21,878)
Total other income	67,208	33,823	4,278		448,526	904,643	946,313	942,427	942,091	553,835	3,735,474	3,926,960
(Loss) from continuing operations before income taxes	(1,332,352)	(1,800,445)	2,239,115		(1,493,224)	(1,146,240)	(526,707)	(644,782)	(547,883)	(2,386,906)	(2,865,612)	(1,902,428)
Income tax (benefit)	5,524,422	173,224			(281,000)	(747,808)	(219,000)	(30,000)	(26,000)	5,416,646	(1,022,808)	(573,351)
Net (loss) from continuing operations	(6,856,774)	(1,973,669)	2,239,115		(1,212,224)	(398,432)	(307,707)	(614,782)	(521,883)	(7,803,552)	(1,842,804)	(1,329,077)
Discontinued operations:
Net income (loss) from discontinued operations, net of tax		191,117				(236)	161,861			191,117	161,625	156,931
Net income from discontinued operations		191,117				(236)	161,861			191,117	161,625	156,931
Net (loss)	$ (6,856,774)	$ (1,782,552)	$ 2,239,115		$ (1,212,224)	$ (398,668)	$ (145,846)	$ (614,782)	$ (521,883)	$ (7,612,435)	$ (1,681,179)	$ (1,172,146)
Net (loss) per share from continuing operations - Basic (in dollars per share)	$ (0.76)	$ (0.22)	$ 0.24		$ (0.14)	$ (0.05)	$ (0.04)	$ (0.07)	$ (0.07)	$ (0.87)	$ (0.22)	$ (0.17)
Net income per share from discontinued operations - Basic (in dollars per share)		0.02					0.02			0.02	0.02	0.02
Net (loss) per share - Basic (in dollars per share)	(0.76)	(0.20)	0.24		(0.14)	(0.05)	(0.02)	(0.07)	(0.07)	(0.85)	(0.20)	(0.15)
Net (loss) per share from continuing operations - Diluted (in dollars per share)	(0.76)	(0.22)	0.23		(0.14)	(0.05)	(0.04)	(0.07)	(0.07)	(0.87)	(0.22)	(0.17)
Net income per share from discontinued operations - Diluted (in dollars per share)		0.02					0.02			0.02	0.02	0.02
Net (loss) per share - Diluted (in dollars per share)	$ (0.76)	$ (0.20)	$ 0.23		$ (0.14)	$ (0.05)	$ (0.02)	$ (0.07)	$ (0.07)	$ (0.85)	$ (0.20)	$ (0.15)
Weighted average shares - Basic (in shares)	8,977,984	9,037,046	9,028,506		8,958,405	8,806,570	8,613,354	8,374,900	7,809,385	9,009,189	8,398,778	7,776,949
Weighted average shares - Diluted (in shares)	8,977,984	9,037,046	9,549,144		8,958,405	8,806,570	8,613,354	8,374,900	7,809,385	9,009,189	8,398,778	7,776,949
Product [Member]
Total revenue		$ 8,636,126	$ 8,429,132	$ 8,323,845	$ 7,280,723					$ 32,669,826	$ 27,269,963	$ 23,113,194
License [Member]
Total revenue			$ 4,010,000							$ 4,010,000

Schedule II (Details)

Schedule II (Details) - USD ($)	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
SEC Schedule, 12-09, Allowance, Credit Loss [Member]
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	$ 96,868	$ 96,868	$ 126,868
Additions charged (credited) to cost and expenses	103,132		(30,000)	[1]
(Deductions)
Balance at end of period	200,000	96,868	96,868
Deferred Tax Valuation Allowance [Member]
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	628,730	628,730	628,730
Additions charged (credited) to cost and expenses	3,467,623
(Deductions)
Balance at end of period	$ 4,096,353	$ 628,730	$ 628,730
[1]	Reduction in allowance for doubtful accounts due to adjustment in reserve balance.