Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Aug. 26, 2019 | Dec. 31, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | SHARPS COMPLIANCE CORP | ||
Entity Central Index Key | 0000898770 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 45.6 | ||
Entity Common Stock, Shares Outstanding | 16,137,513 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2019 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
CURRENT ASSETS | ||
Cash | $ 4,512 | $ 5,155 |
Accounts receivable, net | 9,289 | 6,370 |
Inventory | 3,770 | 3,986 |
Contract asset | 260 | 0 |
Prepaid and other current assets | 922 | 739 |
TOTAL CURRENT ASSETS | 18,753 | 16,250 |
PROPERTY, PLANT AND EQUIPMENT, net | 5,867 | 6,572 |
INVENTORY, net of current portion | 1,046 | 0 |
OTHER ASSETS | 443 | 149 |
GOODWILL | 6,735 | 6,735 |
INTANGIBLE ASSETS, net | 3,196 | 3,525 |
TOTAL ASSETS | 36,040 | 33,231 |
CURRENT LIABILITIES | ||
Accounts payable | 2,946 | 1,500 |
Accrued liabilities | 2,213 | 2,061 |
Current maturities of long-term debt | 517 | 537 |
Contract liability | 2,502 | 1,894 |
TOTAL CURRENT LIABILITIES | 8,178 | 5,992 |
CONTRACT LIABILITY, net of current portion | 503 | 470 |
OTHER LIABILITIES | 42 | 130 |
DEFERRED TAX LIABILITY | 243 | 0 |
LONG-TERM DEBT, net of current portion | 948 | 1,465 |
TOTAL LIABILITIES | 9,914 | 8,057 |
COMMITMENTS AND CONTINGENCIES (Note 8) | ||
STOCKHOLDERS’ EQUITY | ||
Common stock, $0.01 par value per share; 40,000,000 and 20,000,000 shares authorized, respectively; 16,433,128 and 16,377,636 shares issued, respectively, and 16,137,513 and 16,082,021 shares outstanding, respectively | 165 | 164 |
Treasury stock, at cost, 295,615 shares repurchased | (1,554) | (1,554) |
Additional paid-in capital | 29,020 | 28,621 |
Accumulated deficit | (1,505) | (2,057) |
TOTAL STOCKHOLDERS’ EQUITY | 26,126 | 25,174 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 36,040 | $ 33,231 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2019 | Jun. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 40,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 16,433,128 | 16,377,636 |
Common stock, shares outstanding (in shares) | 16,137,513 | 16,082,021 |
Treasury stock, shares repurchased (in shares) | 295,615 | 295,615 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | |||
REVENUES | $ 44,312 | $ 40,141 | $ 38,188 |
Cost of revenues | 31,042 | 28,739 | 26,351 |
GROSS PROFIT | 13,270 | 11,402 | 11,837 |
Selling, general and administrative | 12,003 | 11,168 | 12,223 |
Depreciation and amortization | 820 | 811 | 801 |
OPERATING INCOME (LOSS) | 447 | (577) | (1,187) |
OTHER INCOME (EXPENSE) | |||
Interest income | 24 | 20 | 13 |
Interest expense | (87) | (94) | (115) |
TOTAL OTHER EXPENSE | (63) | (74) | (102) |
INCOME (LOSS) BEFORE INCOME TAXES | 384 | (651) | (1,289) |
INCOME TAX EXPENSE (BENEFIT) | |||
Current | (81) | 29 | 4 |
Deferred | 251 | (8) | 0 |
TOTAL INCOME TAX EXPENSE | 170 | 21 | 4 |
NET INCOME (LOSS) | $ 214 | $ (672) | $ (1,293) |
NET INCOME (LOSS) PER COMMON SHARE | |||
Basic and diluted (in dollars per share) | $ 0.01 | $ (0.04) | $ (0.08) |
WEIGHTED AVERAGE SHARES USED IN COMPUTING NET INCOME (LOSS) PER COMMON SHARE: | |||
Basic (in shares) | 16,116 | 16,055 | 15,949 |
Diluted (in shares) | 16,123 | 16,055 | 15,949 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid- in Capital | Accumulated Deficit |
Balances (in shares) at Jun. 30, 2016 | 15,740,458 | 295,615 | |||
Balances at Jun. 30, 2016 | $ 23,843 | $ 158 | $ (1,554) | $ 25,331 | $ (92) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options (in shares) | 95,000 | 95,050 | |||
Exercise of stock options | $ 342 | $ 1 | 341 | ||
Stock-based compensation | 496 | 496 | |||
Issuance of common shares for acquisition (in shares) | 415,527 | ||||
Issuance of common shares for acquisition | 1,899 | $ 4 | 1,895 | ||
Issuance of restricted stock (in shares) | 52,992 | ||||
Issuance of restricted stock | 0 | ||||
Net income (loss) | (1,293) | (1,293) | |||
Balances (in shares) at Jun. 30, 2017 | 16,304,027 | 295,615 | |||
Balances at Jun. 30, 2017 | 25,287 | $ 163 | $ (1,554) | 28,063 | (1,385) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | $ 476 | 476 | |||
Issuance of common shares for lease (in shares) | 20,617 | 20,617 | |||
Issuance of common shares for lease | $ 83 | 83 | |||
Issuance of restricted stock (in shares) | 52,992 | ||||
Issuance of restricted stock | 0 | $ 1 | (1) | ||
Net income (loss) | (672) | (672) | |||
Balances (in shares) at Jun. 30, 2018 | 16,377,636 | 295,615 | |||
Balances at Jun. 30, 2018 | 25,174 | $ 164 | $ (1,554) | 28,621 | (2,057) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 400 | 400 | |||
Issuance of restricted stock (in shares) | 55,492 | ||||
Issuance of restricted stock | 0 | $ 1 | (1) | ||
Net income (loss) | 214 | 214 | |||
Balances (in shares) at Jun. 30, 2019 | 16,433,128 | 295,615 | |||
Balances at Jun. 30, 2019 | $ 26,126 | $ 165 | $ (1,554) | $ 29,020 | $ (1,505) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net income (loss) | $ 214,000 | $ (672,000) | $ (1,293,000) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 1,663,000 | 1,561,000 | 1,485,000 |
Bad debt expense | 81,000 | 62,000 | 20,000 |
Non-cash lease expense | 46,000 | 37,000 | 0 |
Inventory write-offs | 55,000 | 0 | 0 |
Loss on disposal of property, plant and equipment | 21,000 | 13,000 | 10,000 |
Stock-based compensation expense | 400,000 | 476,000 | 496,000 |
Deferred tax expense (benefit) | 251,000 | (8,000) | 0 |
Changes in operating assets and liabilities, net of effects of business acquisitions: | |||
Accounts receivable | (3,000,000) | 1,121,000 | (1,264,000) |
Inventory | (492,000) | 305,000 | (61,000) |
Prepaid and other assets | (531,000) | (20,000) | (35,000) |
Accounts payable and accrued liabilities | 1,498,000 | 29,000 | 125,000 |
Contract asset and contract liability | 719,000 | (535,000) | (61,000) |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 925,000 | 2,369,000 | (578,000) |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Purchase of property, plant and equipment | (749,000) | (1,212,000) | (2,486,000) |
Cash proceeds from sale of property, plant and equipment | 0 | 10,000 | 23,000 |
Additions to intangible assets | (282,000) | (86,000) | (163,000) |
Payments for business acquisition, net of cash acquired | 0 | 0 | (7,314,000) |
NET CASH USED IN INVESTING ACTIVITIES | (1,031,000) | (1,288,000) | (9,940,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from exercise of stock options | 0 | 0 | 342,000 |
Repayments of long-term debt | (537,000) | (601,000) | (3,184,000) |
Proceeds from long-term debt | 0 | 0 | 5,600,000 |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (537,000) | (601,000) | 2,758,000 |
NET INCREASE (DECREASE) IN CASH | (643,000) | 480,000 | (7,760,000) |
CASH, beginning of year | 5,155,000 | 4,675,000 | 12,435,000 |
CASH, end of year | 4,512,000 | 5,155,000 | 4,675,000 |
SUPPLEMENTAL CASH FLOW DISCLOSURES: | |||
Income taxes paid | 37,000 | 3,000 | 9,000 |
Interest paid on long-term debt | 89,000 | 87,000 | 107,000 |
NON-CASH INVESTING ACTIVITIES: | |||
Issuance of common stock for acquisition | 0 | 0 | 1,899,000 |
Issuance of common stock for lease | 0 | 83,000 | 0 |
Transfer of equipment to inventory | 393,000 | 193,000 | 118,000 |
Property, plant and equipment financed through accounts payable | $ 12,000 | $ (13,000) | $ 28,000 |
ORGANIZATION AND BACKGROUND
ORGANIZATION AND BACKGROUND | 12 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BACKGROUND | ORGANIZATION AND BACKGROUND Organization : The accompanying consolidated financial statements include the financial transactions and accounts of Sharps Compliance Corp. and its wholly owned subsidiaries, Sharps Compliance, Inc. of Texas (dba Sharps Compliance, Inc.), Sharps e-Tools.com Inc. (“Sharps e-Tools”), Sharps Manufacturing, Inc., Sharps Environmental Services, Inc. (dba Sharps Environmental Services of Texas, Inc.), Sharps Safety, Inc., Alpha Bio/Med Services LLC, Bio-Team Mobile LLC and Citiwaste, LLC (collectively, “Sharps” or the “Company”). All significant intercompany accounts and transactions have been eliminated upon consolidation. Business : Sharps is a leading full-service national provider of comprehensive waste management services including medial, pharmaceutical and hazardous for small and medium quantity generators. The Company’s solutions include Sharps Recovery System™ (formerly Sharps Disposal by Mail System ® ), TakeAway Medication Recovery System™, MedSafe ® , TakeAway Recycle System™, ComplianceTRAC SM , SharpsTracer ® , Sharps Secure ® Needle Disposal System, Complete Needle™ Collection & Disposal System, TakeAway Environmental Return System™, Pitch-It IV™ Poles, Asset Return System and Spill Kit and Recovery System . The Company also offers route-based pickup services in a twenty-four (24) state region of the South, Southeast and Northeast portions of the United States. Concentration of Customers and Service Providers : There is an inherent concentration of credit risk associated with accounts receivable arising from sales to major customers. For the fiscal year ended June 30, 2019 , two customers represented approximately 27% of revenues. One of these customers also represented approximately 19% , or $1.7 million , of the total accounts receivable balance as of June 30, 2019 . For the fiscal year ended June 30, 2018 , one customer represented approximately 17% of revenues and 13% , or $0.8 million , of the total accounts receivable balance as of June 30, 2018 . For the fiscal year ended June 30, 2017 , one customer represented approximately 17% of revenues. In the event a major customer is lost, the Company may be adversely affected by its dependence on a limited number of high volume customers. Currently, the majority of Sharps transportation is sourced with the United States Postal Service (“USPS”), which consists of delivering the Sharps Recovery System from the end user to the Company’s facilities. The Company also has an arrangement with United Parcel Service Inc. (“UPS”) whereby UPS transports certain of the Company’s products from the end user to the Company’s facilities. Sharps maintains relationships with multiple raw materials suppliers and vendors in order to meet customer demands and assure availability of our products and solutions. With respect to the Sharps Recovery System solutions, the Company owns proprietary molds and dies and utilizes several contract manufacturers for the production of the primary raw materials. Sharps believes that alternative suitable contract manufacturers are readily available to meet the production specifications of our products and solutions. The Company utilizes national suppliers for the majority of the raw materials used in our other products and solutions and international suppliers for Pitch-It IV Poles. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition: In May 2014 and as subsequently amended, guidance for revenue recognition was issued which supersedes the revenue recognition requirements previously followed by the Company. The new guidance provides for a single five-step model to be applied in determining the amount and timing of the recognition of revenue related to contracts with customers. The new standard also requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts. The Company adopted the standard on July 1, 2018 using the modified retrospective approach, which involves retrospectively adopting the standard by recording a cumulative effect adjustment for all uncompleted contracts at July 1, 2018. This cumulative effect was $0.3 million which decreased accumulated deficit (and increased stockholders' equity) and increased contract assets by $0.3 million . The impact that the new accounting guidance had on its consolidated financial statements and related disclosures included the following: • The transportation and treatment performance obligations related to the mail back and unused medication solutions, which were historically accounted for as separate performance obligations, will be accounted for as a single performance obligation under the new revenue recognition guidance. The impact of this was not material. • Certain costs associated with obtaining long-term contracts with customers will be capitalized and amortized over the expected economic life of the contract in future periods. The impact of this was not material. • The new guidance changed the timing of revenue recognition on certain of the Company’s vendor managed inventory contracts. This constituted a material portion of the cumulative effect noted above as under the new guidance, revenue recognition is no longer limited to the amounts that may be billed to the customer at the point in time in which performance obligations are satisfied. • The Company made a number of practical expedient elections related to the new accounting guidance, including: (i) right to invoice practical expedient that allows revenue for route-based pickup services to be recognized in the amount to which the Company has a right to invoice over time; (ii) sales and use taxes have been excluded from the transaction price; (iii) for incremental costs to obtain a contract that would be recognized over one year or less, the Company expenses those costs as incurred; and (iv) at the implementation date, new guidance was applied only to contracts that were not completed as of the date of initial application. The components of revenues by solution which reflect a disaggregation of revenue by contract type are as follows (dollar amounts in thousands): Year Ended June 30, 2019 % Total 2018 (2) % Total 2017 (2) % Total REVENUES BY SOLUTION: Mailbacks $ 24,501 55.2 % $ 22,272 55.5 % $ 24,625 64.5 % Route-based pickup services 9,029 20.4 % 7,492 18.7 % 6,348 16.6 % Unused medications 6,936 15.7 % 5,907 14.7 % 3,377 8.8 % Third party treatment services 290 0.7 % 891 2.2 % 413 1.1 % Other (1) 3,556 8.0 % 3,579 8.9 % 3,425 9.0 % Total revenues $ 44,312 100.0 % $ 40,141 100.0 % $ 38,188 100.0 % (1) The Company’s other products include IV poles, accessories, containers, asset return boxes and other miscellaneous items with single performance obligations. (2) Certain prior year amounts have been reclassified to conform to current year presentation. The Company recognizes revenue, net of applicable sales tax, when performance obligations are satisfied through the transfer of control of promised goods or services to the Company’s customers. Control transfers once a customer has the ability to direct the use of, and obtain substantially all of the benefits from, the promised goods or services. Outbound shipping and handling activities to customers are considered fulfillment activities with the exception of mailbacks sold as part of the vendor managed inventory ("VMI") program. Shipping and handling are considered separate performance obligations for mailbacks sold under the VMI program. For performance obligations satisfied at a point in time, which applies to all contracts except for route-based pickup services, revenue recognition occurs when there is a transfer of control or completion of service. For performance obligations satisfied over time, which applies to the route-based pickup services, revenue is recognized in the amount to which the Company has a right to invoice pursuant to the right to invoice practical expedient. Provisions for certain rebates, product returns and discounts to customers are estimated at the inception of the contract, updated as needed throughout the contract term, and accounted for as reductions in sales in the same period the related sales are recorded. Product discounts granted are based on the terms of arrangements with direct, indirect and other market participants, as well as market conditions, including prices charged by competitors. Rebates are estimated based on contractual terms, historical experience, trend analysis and projected market conditions in the various markets served. Other than the Company’s mailbacks and unused medication solutions, the Company’s solutions have a single performance obligation. The Company's mailbacks and unused medication solutions have revenue producing components that are recognized over multiple delivery points (Sharps Recovery System and various other solutions like the MedSafe and TakeAway Medication Recovery Systems referred to as “mailbacks” or "unused medications") and can consist of up to two performance obligations, or units of measure, as follows: (1) the sale of the compliance and container system, and (2) return transportation and treatment service. For mailbacks that are p art of the VMI program, there is an additional element, or unit of measure, for outbound transportation. For contracts with multiple performance obligations, an estimated stand-alone selling price is determined for all performance obligations. The consideration is then allocated to the performance obligations based on their relative stand-alone selling price. The selling price for performance obligations for transportation and treatment utilizes third party evidence. The Company estimates the selling price of the compliance and container system based on the product and services provided, including the expected cost plus a margin. The allocated transaction price for the sale of the compliance and container system is recognized upon delivery to the customer, at which time the customer has control. The allocated transaction price for the return transportation and treatment revenue is recognized when the customer returns the compliance and container system and the container has been received at the Company’s owned or contracted facilities. The compliance and container system is mailed or delivered by an alternative logistics provider to the Company’s owned or contracted facilities at which point the destruction or conversion and proof of receipt and treatment are performed on the container. Consideration received and allocated to the transportation and treatment performance obligation is recorded as a contract liability until the services are performed. Through regression analysis of historical data, the Company has determined that a certain percentage of all compliance and container systems sold may not be returned. Accordingly, a portion of the return transportation and treatment element is recognized at the point of sale. Furthermore, the current and long-term portions of amounts historically referred to deferred revenues (shown as Contract Liability on the condensed consolidated balance sheets) are determined through regression analysis and historical trends. The VMI program includes terms that meet the “bill and hold” criteria and as such are recognized when the order is placed, title has transferred, there are no acceptance provisions and amounts are segregated in the Company’s warehouse for the customer. For the fiscal years ended June 30, 2019 and 2018, the Company recorded billings from inventory builds that are held in vendor managed inventory under these service agreements of $2.7 million and $2.4 million , respectively. As of June 30, 2019 and 2018, $1.9 million and $2.1 million , respectively, of solutions sold through that date were held in vendor managed inventory pending fulfillment or shipment to patients of pharmaceutical manufacturers who offer these solutions to patients in an ongoing patient support program. The impact of adopting the new accounting guidance on the Company's consolidated balance sheet as of June 30, 2019 was as follows (in thousands): June 30, 2019 As Reported Adjustments Balance Without Adoption Current contract asset $ 260 $ (260 ) $ — Prepaid and other current assets 922 (49 ) 873 Total current assets 18,753 (309 ) 18,444 Total assets 36,040 (309 ) 35,731 Current contract liability (1) 2,502 (27 ) 2,475 Total current liabilities 8,178 (27 ) 8,151 Contract liability, net of current portion (1) 503 — 503 Total liabilities 9,914 (27 ) 9,887 Accumulated deficit (1,505 ) (282 ) (1,787 ) Total stockholders' equity 26,126 (282 ) 25,844 Total liabilities and stockholders' equity $ 36,040 $ (309 ) $ 35,731 (1): Prior period contract liabilities were referred to as deferred revenue. The impact of adopting the new accounting guidance on the Company's consolidated statement of operations for the year ended June 30, 2019 was as follows (in thousands): Year Ended June 30, 2019 As Reported Adjustments Balance Without Adoption Revenues $ 44,312 $ 267 $ 44,579 Cost of revenues 31,042 162 31,204 Gross profits 13,270 105 13,375 Selling, general and administrative 12,003 49 12,052 Operating income 447 56 503 Net income $ 214 $ 56 $ 270 The estimated timing of recognition of amounts included at June 30, 2019 are as follows: for the twelve months ending June 30, 2020 - contract asset of $0.3 million and contract liability of $2.5 million and for the twelve months ending June 30, 2021 - contract liability of $0.5 million . The contract asset is related to VMI service agreements within the mailbacks contract type category when the revenue recognition exceeds the amount of consideration the Company was entitled to at the point in time of satisfying the performance obligation associated with the sale of the compliance and container system. The contract liability is related to the mailbacks and unused medications contract type categories in which cash consideration exceeds the transaction price allocated to completed performance obligations. Incremental costs to obtain contracts that are deemed to be recoverable under the new accounting guidance, primarily related to the payment of sales incentives for contracts in the route-based pickup service category, are capitalized as contract costs and included in prepaids and other current assets in the amount of $59 thousand for the year ended June 30, 2019 . The amortization of capitalized sales incentives, which is included in selling, general and administrative expense, totaled $10 thousand for the year ended June 30, 2019 . Business Combinations : The Company includes the results of operations of the businesses that are acquired as of the respective dates of acquisition. The Company allocates the fair value of the purchase price of acquisitions to the assets acquired and liabilities assumed based on their estimated fair values. The Company estimates and records the fair value of purchased intangible assets, which primarily consists of customer relationships, trade-names, and non-competes. The excess of the fair value of the purchase price over the fair values of these identifiable assets, both tangible and intangible, and liabilities is recorded as goodwill. Income Taxes : Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is established when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The establishment of a valuation allowance requires significant judgment and is impacted by various estimates. Both positive and negative evidence, as well as the objectivity and verifiability of that evidence, is considered in determining the appropriateness of recording a valuation allowance on deferred tax assets. A valuation allowance has been recorded to reduce the Company’s deferred tax assets to an amount that is more likely than not to be realized and is based upon the uncertainty of the realization of certain federal and state deferred tax assets related to net operating loss carryforwards and other tax attributes. The Company is subject to income taxes in the United States and in numerous state tax jurisdictions. Significant judgment is required in evaluating the Company’s tax positions and determining its provision for income taxes. The Company accounts for uncertain tax positions in accordance with FASB ASC 740, which prescribes the minimum recognition threshold a tax position taken or expected to be taken in a tax return is required to meet before being recognized in the financial statements. The Company has not recognized any material uncertain tax positions for the years ended June 30, 2019 , 2018 and 2017 . Tax return filings which are subject to review by federal and state tax authorities by jurisdiction are as follows: • United States – fiscal years ended June 30, 2016 and after • State of Texas – fiscal years ended June 30, 2014 and after • State of Georgia – fiscal years ended June 30, 2016 and after • State of Pennsylvania – fiscal years ended June 30, 2016 and after • Other States – fiscal years ended June 30, 2015 and after None of the Company’s federal or state tax returns are currently under examination. The Company records income tax related interest and penalties, if applicable, as a component of the provision for income tax expense. However, there were no such amounts recognized in the consolidated statements of operations in the years ended June 30 , 2019 , 2018 and 2017 . Accounts Receivable : Accounts receivable consist primarily of amounts due to the Company from normal business activities. Accounts receivable balances are determined to be delinquent when the amount is past due based on the contractual terms with the customer. The Company maintains an allowance for doubtful accounts to reflect the likelihood of not collecting certain accounts receivable based on past collection history and specific risks identified among uncollected accounts. Accounts receivable are charged to the allowance for doubtful accounts when the Company determines that the receivable will not be collected and/or when the account has been referred to a third-party collection agency. See rollforward of allowance activity below: Allowance for Doubtful Accounts Balance Beginning of Year Charges to Expense Write-offs /Recoveries Balance End of Year 2019 $ 102 $ 81 $ (51 ) $ 132 2018 $ 78 $ 62 $ (38 ) $ 102 2017 $ 63 $ 20 $ (5 ) $ 78 Stock-Based Compensation: Stock-based compensation cost for options and restricted stock awarded to employees and directors is measured at the grant date based on the calculated fair value of the award and is recognized as an expense over the requisite service period (generally the vesting period of the equity grant). Total stock-based compensation expense for the fiscal years ended June 30, 2019 , 2018 and 2017 are as follows: Year Ended June 30, 2019 2018 2017 Stock-based compensation expense included in: Cost of revenue $ 9 $ 43 $ 41 Selling, general and administrative 391 433 455 Total $ 400 $ 476 $ 496 The Company estimates the fair value of restricted stock awards based on the closing price of the Company’s common stock on the date of the grant. The Company estimates the fair value of stock options using the Black-Scholes valuation model. Key input assumptions used to estimate the fair value of stock options include the exercise price of the award, the expected option term, the expected volatility of the Company’s stock over the option’s expected term, the risk free interest rate over the option’s expected term and the Company’s expected annual dividend yield. The risk free interest rate is derived using the U.S. Treasury yield curve in effect at date of grant. Volatility, expected life and dividend yield are based on historical experience and activity. The fair value of the Company’s stock options was estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions: Year Ended June 30, 2019 2018 2017 Weighted average risk-free interest rate 2.6 % 1.2 % 1.1 % Weighted average expected volatility 44 % 48 % 47 % Weighted average expected life (in years) 3.08 3.03 5.15 Dividend yield — — — The Company considers an estimated forfeiture rate for stock options based on historical experience and the anticipated forfeiture rates during the future contract life. Cash : The Company maintains funds in bank accounts that, at times, may exceed the limit insured by the Federal Deposit Insurance Corporation (“FDIC”). The risk of loss attributable to these uninsured balances is mitigated by depositing funds only in high credit quality financial institutions. The Company has not experienced any losses in such accounts. Inventory : Inventory consists primarily of raw materials and finished goods held for sale and are stated at the lower of cost or net realizable value using the average cost method. The Company periodically reviews the value and classification of items in inventory and provides write-downs or write-offs of inventory based on its assessment of physical deterioration, obsolescence, changes in price levels and other causes. At June 30, 2019 , total inventory was $4.8 million of which $3.5 million was finished goods, and $1.3 million was raw materials. At June 30, 2018 , total inventory was $4.0 million of which $2.7 million was finished goods, and $1.3 million was raw materials. The current portion of inventory was $3.8 million which includes amounts which the Company expects to sell in the next twelve month period based on historical sales. Total write-offs for the fiscal year ended June 30, 2019 were $0.1 million and were included in cost of goods sold. There were no write-offs of inventory for the fiscal years ended June 30, 2018 and 2017. Property, Plant and Equipment : Property, plant and equipment, including third party software and implementation costs, is stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method based on the estimated useful lives of the assets. Additions, improvements and renewals significantly adding to the asset value or extending the life of the asset are capitalized. Ordinary maintenance and repairs, which do not extend the physical or economic life of the property or equipment, are charged to expense as incurred. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in the results of operations for the period. Computer and software development costs, which include costs of computer software developed or obtained for internal use, all programming, implementation and costs incurred with developing internal-use software, are capitalized during the development project stage. External direct costs of materials and services consumed in developing or obtaining internal-use computer software are capitalized. The Company expenses costs associated with developing or obtaining internal-use software during the preliminary project stage. Training and maintenance costs associated with system changes or internal-use software are expensed as incurred. Additionally, the costs of data cleansing, reconciliation, balancing of old data to the new system, creation of new/additional data and data conversion costs are expensed as incurred. Impairment of Long-lived Assets : The Company evaluates the recoverability of property, plant and equipment and intangible or other assets if facts and circumstances indicate that any of those assets might be impaired. If an evaluation is required, the estimated future undiscounted cash flows associated with the asset are compared to the asset’s carrying amount to determine if a write-down to fair value is necessary. No impairment loss was recognized during the years ended June 30, 2019 , 2018 and 2017 . Goodwill and Other Identifiable Intangible Assets: Finite-lived intangible assets are amortized over their respective estimated useful lives and evaluated for impairment periodically whenever events or changes in circumstances indicate that their related carrying values may not be fully recoverable. Goodwill is assessed for impairment at least annually. The Company generally performs its annual goodwill impairment analysis using a quantitative approach. The quantitative goodwill impairment test identifies the existence of potential impairment by comparing the fair value of our single reporting unit with its carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying value, the reporting unit’s goodwill is considered not to be impaired. If the carrying value of a reporting unit exceeds its fair value, an impairment charge is recognized in an amount equal to that excess. The impairment charge recognized is limited to the amount of goodwill present in our single reporting unit. These estimates and assumptions could have a significant impact on whether or not an impairment charge is recognized and the amount of any such charge. The Company performs its annual impairment assessment of goodwill during the fourth quarter of each fiscal year. The Company determined that there was no impairment during the years ended June 30, 2019 , 2018 and 2017 . Intangible Assets : Intangible assets consist of (i) acquired customer relationships, (ii) permit costs related to the Company’s treatment facilities and transfer stations, (iii) twelve patents and (iv) defense costs related to certain existing patents. Accrued Liabilities : The components of Accrued Liabilities on the balance sheet as of June 30, 2019 and 2018 are as follows: As of June 30, 2019 2018 Accrued payroll $ 376 $ 389 Customer-related payables 341 334 Accrued rebates 493 327 Other 1,003 1,011 Total $ 2,213 $ 2,061 Shipping and Handling Fees and Costs : The Company records amounts billed to customers for shipping and handling as revenue. Costs incurred by the Company for shipping and handling have been classified as cost of revenues. Advertising Costs : Advertising costs are charged to expenses when incurred and totaled $0.9 million , $0.7 million and $0.8 million for the fiscal years ended June 30, 2019 , 2018 and 2017 , respectively. Research and Development Costs : Research and development costs are charged to expense when incurred. Research activities represent an important part of the Company’s business and include both internal labor costs and payments to third parties related to the processes of discovering, testing and developing new products, improving existing products, as well as demonstrating product efficacy and regulatory compliance prior to launch of new products and services. Research and development expenses paid to third parties totaled less than $0.1 million for each of the fiscal years ended June 30, 2019 , 2018 and 2017 . Employee Benefit Plans : In addition to group health-related benefits, the Company maintains a 401(k) employee savings plan available to all full-time employees. The Company matches a portion of employee contributions with cash ( 25% of employee contribution up to 6% ). Company contributions to the 401(k) plan were less than $0.1 million in each of the fiscal years ended June 30, 2019 , 2018 and 2017 , respectively and are included in selling, general and administrative expenses. For purposes of the group health benefit plan and beginning February 1, 2016, the Company self-insures an amount equal to the excess of the employees’ deductible (range from $2,500 for each individual and family member covered) up to the amount by which the third-party insurance coverage begins (ranges from $2,500 for individual up to $10,000 for family coverage). The amount of liability at June 30, 2019 and 2018 was less than $0.1 million and is included in accrued liabilities. The Company also has an incentive plan for executives of the Company, which provides for performance based cash and stock-based compensation awards. No expense was recognized during the years ended June 30, 2019 , 2018 and 2017 for cash awards pursuant to the plan. Net Income (Loss) Per Share : Basic earnings per share excludes dilution and is determined by dividing net income (loss) by the weighted average number of common shares outstanding including participating securities during the period. Diluted EPS reflects the potential dilution that could occur if securities and other contracts to issue common stock were exercised or converted into common stock. Fair Value of Financial Instruments : The Company considers the fair value of all financial instruments, including cash, accounts receivable and accounts payable to approximate their carrying values at year-end due to their short-term nature. The carrying value of the Company’s debt approximates fair value due to the market rates of interest. Fair Value Measurements : The Company employs a hierarchy which prioritizes the inputs used to measure recurring fair value into three distinct categories based on the lowest level of input that is significant to the fair value measurement. In accordance with GAAP, the methodology for categorizing assets and liabilities that are measured at fair value pursuant to this hierarchy gives the highest priority to unadjusted quoted prices in active markets and the lowest levels to unobservable inputs, summarized as follows: • Level 1 – Quoted prices in active markets for identical assets or liabilities. • Level 2 – Other significant observable inputs (including quoted prices in active markets for similar assets or liabilities). • Level 3 – Significant unobservable inputs (including our own assumptions in determining fair value). We use the cost, income or market valuation approaches to estimate the fair value of our assets and liabilities when insufficient market-observable data is available to support our valuation assumptions. The purchase price allocations relating to the acquisitions completed during the year ended June 30, 2017 utilized level 3 inputs. Segment Reporting : The Company operates in a single segment, focusing on developing cost-effective management solutions for medical waste and unused dispensed medications generated by small and medium quantity generators. Use of Estimates : The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expense during the reporting period. The Company uses estimates to determine many reported amounts, including but not limited to allowance for doubtful accounts, recoverability of long-lived assets and intangibles, useful lives used in depreciation and amortization, income taxes and valuation allowances, stock-based compensation, fair values of assets and liabilities acquired in business combinations, selling price used in multiple-deliverable arrangements and return rates used to estimate the percentage of container systems sold that will not be returned. Actual results could differ from these estimates. Recently Issued Accounting Standards : In February 2016, guidance for leases was issued, which requires balance sheet recognition of lease assets and lease liabilities for all leases. The new guidance also requires additional disclosures about the amount, timing and uncertainty of cash flows arising from leases. The provisions of the new guidance are effective for annual periods beginning after December 15, 2018 (effective July 1, 2019 for the Company), including interim periods within the reporting period, and early application is permitted. The Company has substantially completed its analysis to evaluate the impact that the new guidance will have on its consolidated financial statements and related disclosures. The Company intends to adopt the standard using the modified retrospective approach and recognize a cumulative effect adjustment to assets and liabilities for existing leases as of July 1, 2019. As a result of our analysis, the Company determined the following: • Approximately 50 leases have been identified, substantially all of which are expected to be classified as operating leases. For these real estate, equipment and vehicle operating leases, we expect to recognize new right of use (“ROU”) assets and lease liabilities on our balance sheet. • The Company intends to apply the package of practical expedients to not reassess prior conclusions related to (i) contracts containing leases, (ii) lease classification and (iii) initial direct costs. The Company will not adopt the practical expediency surrounding the use of hindsight to determine lease term, termination and purchase options, or in assessing impairment of ROU assets. • The Company also intends to make the accounting policy election for short-term leases, or leases with terms of twelve months or less, therefore the lease payments will be recorded as an expense on a straight-line basis over the lease term with no ROU asset or lease liability recorded. • The Company has elected to exclude non-lease components of a lease arrangement from the ROU asset and liability for certain asset classes such as real estate and field equipment leases but will include non-lease components of a lease arrangement in the ROU asset and liability for office equipment and automobiles. On adoption, we currently expect to recognize additional operating liabilities ranging from $4.0 million to $5.0 million , with corresponding ROU assets of the same amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT At June 30, 2019 and 2018 , property, plant and equipment consisted of the following (in thousands): June 30, Useful Life 2019 2018 Furniture and fixtures 3 to 5 years $ 245 $ 245 Plant and equipment 3 to 17 years 8,683 8,241 Manufacturing 15 years 169 169 Computers and software 3 to 5 years 2,179 2,064 Leasehold improvements Life of Lease 2,792 2,729 Land 19 19 Construction-in-progress 275 716 14,362 14,183 Less: accumulated depreciation 8,495 7,611 Net property, plant and equipment $ 5,867 $ 6,572 Total depreciation expense in the fiscal years ended June 30, 2019 , 2018 and 2017 was $1.1 million , $1.0 million and $0.9 million , respectively. Depreciation expense included in cost of revenues in the fiscal years ended 2019 , 2018 and 2017 was $0.8 million , $0.8 million and $0.7 million , respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of income tax expense (benefit) are as follows (in thousands): Year ended June 30, 2019 2018 2017 Current: Federal $ (123 ) $ — $ — State 42 29 4 Total Current $ (81 ) $ 29 $ 4 Deferred: Federal $ 217 $ (8 ) $ — State 34 — — Total Deferred 251 (8 ) — Net Income Tax Expense $ 170 $ 21 $ 4 The reconciliation of the statutory income tax rate to the Company’s effective income tax rate for the fiscal years ended June 30, 2019 , 2018 and 2017 is as follows : Year Ended June 30, 2019 2018 2017 Statutory rate 21.0 % 27.6 % 34.0 % State income taxes, net 22.9 % (3.7 )% (4.5 )% Impact of 2017 tax reform — % (107.0 )% — % Meals and entertainment 2.7 % (1.8 )% (1.5 )% Stock-based compensation 16.1 % 22.6 % — % Research and development credits 7.3 % 22.4 % — % Other 1.5 % (2.0 )% 0.2 % Effective rate before valuation allowance 71.5 % (41.9 )% 28.2 % Change in valuation allowance (27.2 )% 38.7 % (28.5 )% Effective tax rate 44.3 % (3.2 )% (0.3 )% The statutory rate for the year ended June 30, 2018 is a blended rate which was calculated based on the Company's fiscal year and the date that the tax rate changes were effective. A valuation allowance has been recorded to reduce the Company’s net deferred tax assets to an amount that is more likely than not to be realized and is based upon the uncertainty of the realization of certain federal and state deferred tax assets related to net operating loss carryforwards and other tax attributes. The establishment of valuation allowances requires significant judgment and is impacted by various estimates. Both positive and negative evidence, as well as the objectivity and verifiability of that evidence, is considered in determining the appropriateness of recording a valuation allowance on deferred tax assets. At June 30, 2019 and 2018 , the significant components of deferred tax assets and liabilities are as follows (in thousands): June 30, 2019 2018 Deferred tax assets relating to: Stock-based compensation $ 261 $ 283 AMT and research and development credits 517 668 Deferred rent 41 58 Inventory 158 147 Professional fees 124 91 Accrued vacation 27 31 Accounts receivable allowance 33 26 Contribution carryovers 8 13 Net operating loss carryforwards 1,067 1,153 Total deferred tax assets 2,236 2,470 Deferred tax liabilities related to depreciable and amortizable assets (728 ) (587 ) Deferred tax liabilities related to other items (63 ) — Net deferred tax assets before valuation allowance 1,445 1,883 Valuation allowance (1,688 ) (1,875 ) Net deferred tax (liability) asset $ (243 ) $ 8 At June 30, 2019 , the Company had net operating loss carryforwards of $5.0 million , which will expire, if unused, between June 30, 2032 and June 30, 2038 . At June 30, 2019 , the Company had various tax credit carryforwards of $0.5 million , of which $0.4 million will expire beginning on June 30, 2030 and $0.1 million related to alternative minimum tax credits which will be refunded as described below. The Tax Cuts and Jobs Act of 2017, enacted on December 22, 2017, contained significant changes to U.S. tax law, including lowering the U.S. corporate tax rate to 21% and the repeal of the corporate alternative minimum tax for tax years beginning on or after January 1, 2018. Other provisions in the 2017 tax reform such as interest deductibility, changes to executive compensation plans, full expensing provisions for business assets, other new minimum taxes and international taxation modifications are not expected to have material implications to the Company's financial statements. Given the repeal of the corporate alternative minimum tax, existing alternative minimum tax credit carryovers are to be refunded beginning in 2018. Therefore, a deferred tax asset is recorded for $0.1 million as of June 30, 2019 and no valuation allowance is in place related to this deferred tax asset. The deferred tax asset is offset by deferred tax liabilities related to indefinite lived assets, such as goodwill, in the amount of $0.3 million , which cannot be used as a source of future taxable income in evaluating the need for a valuation allowance against deferred tax assets for a net deferred tax liability of $0.2 million . A deferred tax asset of $0.2 million was recorded as of June 30, 2018 for the alternative minimum tax credit carryforward which was offset by deferred tax liabilities related to indefinite lived assets, such as goodwill, in the amount of $0.2 million for a net deferred tax asset of $8,000 . |
NOTES PAYABLE AND LONG-TERM DEB
NOTES PAYABLE AND LONG-TERM DEBT | 12 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE AND LONG-TERM DEBT | NOTES PAYABLE AND LONG-TERM DEBT On March 29, 2017, the Company entered into to a credit agreement with a commercial bank which was subsequently amended on June 29, 2018 to extend the maturity date by two years (“the Credit Agreement”). The Credit Agreement, provides for a $14.0 million credit facility, the proceeds of which may be utilized as follows: (i) $6.0 million for working capital, letters of credit (up to $2.0 million ) and general corporate purposes and (ii) $8.0 million for acquisitions. Indebtedness under the Credit Agreement is secured by substantially all of the Company’s assets with advances outstanding under the working capital portion of the credit facility at any time limited to a Borrowing Base (as defined in the Credit Agreement) equal to 80% of eligible accounts receivable plus the lesser of (i) 50% of eligible inventory and (ii) $3.0 million . Advances under the acquisition portion of the credit facility are limited to 75% of the purchase price of an acquired company and convert to a five -year term note at the time of the borrowing. Borrowings bear interest at the greater of (a) zero percent or (b) the One Month ICE LIBOR plus a LIBOR Margin of 2.5% . The LIBOR Margin may increase to as high as 3.0% depending on the Company’s cash flow leverage ratio. The interest rate as of June 30, 2019 was approximately 5.05% . The Company pays a fee of 0.25% per annum on the unused amount of the credit facility. At June 30, 2019 , long-term debt consisted of the following (in thousands): Acquisition loan, bearing interest at 5.05%, monthly payments of $43; maturing March 2022. $ 1,465 Less: current portion 517 Long-term debt, net of current portion $ 948 The Company has availability under the Credit Agreement of $12.4 million ( $5.9 million for the working capital portion and $6.5 million for the acquisitions) as of June 30, 2019 . The Company also has $0.1 million in letters of credit outstanding as of June 30, 2019 . The Credit Agreement contains affirmative and negative covenants that, among other things, require the Company to maintain a maximum cash flow leverage ratio of no more than 3.0 to 1.0 and a minimum debt service coverage ratio of not less than 1.15 to 1.00 . The Credit Agreement, which expires on March 29, 2021 for the working capital portion of the Credit Agreement, also contains customary events of default which, if uncured, may terminate the Credit Agreement and require immediate repayment of all indebtedness to the lenders. The leverage ratio covenant may limit the amount available under the Credit Agreement. The Company was in compliance with all the financial covenants under the Credit Agreement as of June 30, 2019. Payments due on long-term debt over the five years subsequent to June 30, 2019 are as follows (in thousands): Twelve Months Ending June 30, 2020 $ 517 2021 517 2022 431 $ 1,465 On August 21, 2019, certain subsidiaries of the Company entered into a Construction and Term Loan Agreement and a Master Equipment Finance Agreement with its existing commercial bank (collectively, the “Loan Agreement”). The Loan Agreement provides for a five -year, $3.2 million facility, the proceeds of which are to be utilized for expenditures to facilitate future growth at the Company’s treatment facility in Carthage, Texas (the “Texas Treatment Facility”) as follows: (i) $2.0 million for planned improvements and (ii) $1.2 million for equipment. Indebtedness under the Loan Agreement is secured by the Company’s real estate investment and equipment at the Texas Treatment Facility. Advances under the Loan Agreement mature five years from the Closing Date ("August 21, 2019") with monthly payments based on a 20 -year amortization for the real estate portion and on a 6 -year amortization for the equipment portion of the Loan Agreement. Borrowings during the advancing period for the real estate portion and for the entire term of the equipment portion of the Loan Agreement bear interest computed at the One Month ICE LIBOR, plus two-hundred and fifty ( 250 ) basis points which would be a rate of 4.79% on August 21, 2019. The Company has entered into a forward rate lock to fix the rate on the real estate portion of the Loan Agreement at the expiration of the advancing period at 4.15% .The Loan Agreement contains affirmative and negative covenants that, among other things, require the Company to maintain a maximum cash flow leverage ratio and a minimum debt service coverage ratio as described therein consistent with the current Credit Agreement. Both the Credit Agreement and Loan Agreement also contain customary events of the Company's default which, if uncured, may terminate the Credit Agreement or Loan Agreement and require, among other things immediate repayment of all indebtedness to the lenders. |
EQUITY TRANSACTIONS
EQUITY TRANSACTIONS | 12 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
EQUITY TRANSACTIONS | EQUITY TRANSACTIONS On January 7, 2013, the Company announced that its Board of Directors approved a stock repurchase program effective January 3, 2013, authorizing the Company to repurchase in the aggregate up to $3 million of its outstanding common stock over a two -year period. On March 5, 2015, the Board approved a two -year extension of the stock repurchase program through January 1, 2017. The program has not been extended. During the years ended June 30, 2019 , 2018 and 2017 , no shares were repurchased. Total shares repurchased under the program are 295,615 shares at a cost of $1.6 million . During the year ended June 30, 2018 , the Company issued 20,617 shares of common stock as a portion of consideration for a third-party lease agreement. The shares were issued at $4.00 per share based on the closing price on the date of grant. This issuance was exempt from registration pursuant to Section 4(a)(2) of the Securities Act. Non-cash expense recorded during the year ended June 30, 2019 and 2018 was $ 46,000 and $37,000 , respectively. On November 15, 2018, the Company's stockholders approved an amendment to the Company's certificate of incorporation to increase the authorized shares of common stock from 20,000,000 to 40,000,000 shares. |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 12 Months Ended |
Jun. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK BASED COMPENSATION | STOCK BASED COMPENSATION The Company sponsors the Sharps Compliance Corp. 2010 Stock Plan (the “2010 Plan”) covering employees, consultants and non-employee directors. The 2010 Plan provides for the granting of stock-based compensation (stock options or restricted stock) of up to 3,000,000 shares of the Company’s common stock of which 1,293,449 options and restricted shares are outstanding as of June 30, 2019 . Options granted generally vest over a period of four years and expire seven years after the date of grant. Restricted stock generally vests over one year. As of June 30, 2019 , there were 1,037,862 options available for grant under the 2010 Plan. The summary of activity for all restricted stock during the fiscal years ended June 30, 2019 , 2018 and 2017 is presented in the table below (in thousands): Year ended June 30, 2019 2018 2017 Unvested at beginning of the year 13 13 13 Granted 63 53 53 Vested (55 ) (53 ) (53 ) Forfeited (8 ) — — Unvested at end of the year 13 13 13 The weighted average fair value per share of restricted stock granted during the fiscal years ended June 30, 2019 , 2018 and 2017 was $3.53 , $4.17 and $4.38 , respectively. The weighted average fair value per share of restricted stock which vested during the fiscal years ended June 30, 2019 , 2018 and 2017 was $3.69 , $4.22 and $5.29 , respectively. The summary of activity for all stock options during the fiscal years ended June 30, 2019 , 2018 and 2017 is presented in the table below (in thousands except per share amounts): Options Outstanding Weighted Average Exercise Price Options Outstanding at June 30, 2016 1,290 $ 4.69 Granted 38 $ 4.55 Exercised (95 ) $ 3.60 Forfeited or canceled (368 ) $ 5.32 Options Outstanding at June 30, 2017 865 $ 4.53 Granted 137 $ 4.79 Forfeited or canceled (82 ) $ 4.50 Options Outstanding at June 30, 2018 920 $ 4.57 Granted 578 $ 3.73 Forfeited or canceled (218 ) $ 4.16 Options Outstanding at June 30, 2019 1,280 $ 4.26 Options Exercisable at June 30, 2019 591 $ 4.67 The following table summarizes information about stock options outstanding as of June 30, 2019 (in thousands except per share amounts): Options Outstanding Range of Exercise Outstanding as of June 30, 2019 Weighted Average Remaining Life (in Years) Weighted Average Exercise Price $2.51 - $3.75 107 4.77 $ 3.18 $3.76 - $5.00 1,044 4.70 $ 4.17 $5.01 - $7.50 129 2.81 $ 5.95 1,280 $ 4.26 The following table summarizes information about stock options exercisable as of June 30, 2019 (in thousands except per share amounts): Options Exercisable Range of Exercise Price Exercisable as of June 30, 2019 Weighted Average Remaining Life (in Years) Weighted Average Exercise Price $2.51 - $3.75 32 0.57 $ 2.92 $3.76 - $5.00 437 2.41 $ 4.45 $5.01 - $7.50 122 2.78 $ 5.90 591 $ 4.67 As of June 30. 2019 , there was $0.6 million of stock option and restricted stock compensation expense related to non-vested awards. This expense is expected to be recognized over a weighted average period of 3.4 years . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Operating Leases: The Company operates in a number of locations across the U.S. including space for corporate offices in Houston, Texas. Sharps has manufacturing, assembly, storage, distribution and warehousing operations as well as two (2) fully-permitted facilities that house our processing and treatment operations. The Company owns one processing and treatment facility and leases all other spaces. The Company also leases a number of trucks and office equipment. The leases expire between fiscal years 2019 to 2024 with options to renew ranging from 1 years to 5 years. Rent expense for the fiscal years ended June 30, 2019 , 2018 and 2017 was $2.2 million , $2.0 million and $1.5 million , respectively. Future minimum lease payments under non-cancelable operating leases as of June 30, 2019 are as follows (in thousands): Year Ended June 30, 2020 2021 2022 2023 2024 Total Operating lease obligations $ 2,059 $ 1,322 $ 532 $ 155 $ 38 $ 4,106 On August 21, 2019, the Company amended the corporate office lease agreement pursuant to the lease agreement originally dated July 13, 2006. This fifth amendment to the lease extends the term of the lease from February 29, 2020 to February 28, 2025 and sets base rent amounts for the extended term of the lease (“Extended Term”). The blended base rent for the first year of the Extended Term is $14.00 per square foot with subsequent annual increases of 3% . The future minimum lease payments for the extended lease will be an additional $0.1 million , $0.3 million , $0.4 million , $0.4 million , $0.4 million and $0.3 million for fiscal years ending June 30, 2020, 2021, 2022, 2023, 2024 and 2025, respectively. Performance Bonds: The Company utilizes performance bonds to support operations based on certain state requirements. At June 30, 2019 , the Company had performance bonds outstanding covering financial assurance up to $1.0 million . Other : From time to time, the Company is involved in legal proceedings and litigation in the ordinary course of business. In the opinion of management, the outcome of such matters is not anticipated to have a material adverse effect on the Company’s consolidated financial position or consolidated results of operations. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income (loss) by the weighted average number of common shares after considering the additional dilution related to common stock options and restricted stock. In computing diluted earnings per share, the outstanding common stock options are considered dilutive using the treasury stock method. The Company’s restricted stock awards are treated as outstanding for earnings per share calculations since these shares have full voting rights and are entitled to participate in dividends declared on common shares, if any, and undistributed earnings. As participating securities, the shares of restricted stock are included in the calculation of basic and diluted EPS using the two-class method. For the periods presented, the amount of earnings allocated to the participating securities was not material. The following information is necessary to calculate earnings per share for the periods presented (in thousands, except per share amounts): Year ended June 30, 2019 2018 2017 Net income (loss), as reported $ 214 $ (672 ) $ (1,293 ) Weighted average common shares outstanding 16,116 16,055 15,949 Effect of dilutive stock options 7 — — Weighted average diluted common shares outstanding 16,123 16,055 15,949 Net income (loss) per common share Basic and diluted $ 0.01 $ (0.04 ) $ (0.08 ) Employee stock options excluded from computation of diluted income per share amounts because their effect would be anti-dilutive 1,173 402 304 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS At June 30, 2019 and 2018 , intangible assets consisted of the following (in thousands): June 30, 2019 2018 Estimated Useful Lives Original Amount Accumulated Amortization Net Amount Original Amount Accumulated Amortization Net Amount Customer relationships 7 years $ 3,007 $ (1,348 ) $ 1,659 $ 3,007 $ (919 ) $ 2,088 Permits 6 - 15 years 1,704 (492 ) 1,212 1,459 (390 ) 1,069 Patents 5 - 17 years 420 (296 ) 124 383 (278 ) 105 Tradename 7 years 270 (116 ) 154 270 (77 ) 193 Non-compete 5 years 117 (70 ) 47 117 (47 ) 70 Total intangible assets, net $ 5,518 $ (2,322 ) $ 3,196 $ 5,236 $ (1,711 ) $ 3,525 During the years ended June 30, 2019 , 2018 and 2017 amortization expense was $0.6 million , $0.6 million and $0.6 million , respectively. As of June 30, 2019 , future amortization of intangible assets is as follows (in thousands): Year Ending June 30, 2020 612 2021 636 2022 611 2023 551 2024 140 Thereafter 646 $ 3,196 |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Jun. 30, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) The following tables show quarterly financial information for the years ended June 30, 2019 and 2018 . The Company believes that all necessary adjustments have been included in the amounts below to present fairly the results of such periods (in thousands expect per share amounts). Quarter Ended September 30, December 31, March 31, June 30, Total revenues $ 10,293 $ 12,394 $ 9,451 $ 12,174 Gross profit $ 3,352 $ 3,991 $ 2,035 $ 3,892 Operating income (loss) $ 125 $ 827 $ (1,073 ) $ 568 Net income (loss) $ 70 $ 779 $ (1,125 ) $ 490 Net income (loss) per share - basic and diluted $ 0.00 $ 0.05 $ (0.07 ) $ 0.03 Weighted average shares - diluted 16,089 16,106 16,138 16,150 Quarter Ended September 30, December 31, March 31, June 30, Total revenues $ 9,683 $ 11,119 $ 9,427 $ 9,912 Gross profit $ 3,028 $ 3,131 $ 2,296 $ 2,947 Operating income (loss) $ 101 $ 107 $ (707 ) $ (78 ) Net income (loss) $ 75 $ 156 $ (757 ) $ (146 ) Net income (loss) per share - basic and diluted $ 0.00 $ 0.01 $ (0.05 ) $ (0.01 ) Weighted average shares - diluted 16,093 16,068 16,082 16,082 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Revenue Recognition | Shipping and Handling Fees and Costs : The Company records amounts billed to customers for shipping and handling as revenue. Costs incurred by the Company for shipping and handling have been classified as cost of revenues. The Company recognizes revenue, net of applicable sales tax, when performance obligations are satisfied through the transfer of control of promised goods or services to the Company’s customers. Control transfers once a customer has the ability to direct the use of, and obtain substantially all of the benefits from, the promised goods or services. Outbound shipping and handling activities to customers are considered fulfillment activities with the exception of mailbacks sold as part of the vendor managed inventory ("VMI") program. Shipping and handling are considered separate performance obligations for mailbacks sold under the VMI program. For performance obligations satisfied at a point in time, which applies to all contracts except for route-based pickup services, revenue recognition occurs when there is a transfer of control or completion of service. For performance obligations satisfied over time, which applies to the route-based pickup services, revenue is recognized in the amount to which the Company has a right to invoice pursuant to the right to invoice practical expedient. Provisions for certain rebates, product returns and discounts to customers are estimated at the inception of the contract, updated as needed throughout the contract term, and accounted for as reductions in sales in the same period the related sales are recorded. Product discounts granted are based on the terms of arrangements with direct, indirect and other market participants, as well as market conditions, including prices charged by competitors. Rebates are estimated based on contractual terms, historical experience, trend analysis and projected market conditions in the various markets served. Other than the Company’s mailbacks and unused medication solutions, the Company’s solutions have a single performance obligation. The Company's mailbacks and unused medication solutions have revenue producing components that are recognized over multiple delivery points (Sharps Recovery System and various other solutions like the MedSafe and TakeAway Medication Recovery Systems referred to as “mailbacks” or "unused medications") and can consist of up to two performance obligations, or units of measure, as follows: (1) the sale of the compliance and container system, and (2) return transportation and treatment service. For mailbacks that are p art of the VMI program, there is an additional element, or unit of measure, for outbound transportation. For contracts with multiple performance obligations, an estimated stand-alone selling price is determined for all performance obligations. The consideration is then allocated to the performance obligations based on their relative stand-alone selling price. The selling price for performance obligations for transportation and treatment utilizes third party evidence. The Company estimates the selling price of the compliance and container system based on the product and services provided, including the expected cost plus a margin. The allocated transaction price for the sale of the compliance and container system is recognized upon delivery to the customer, at which time the customer has control. The allocated transaction price for the return transportation and treatment revenue is recognized when the customer returns the compliance and container system and the container has been received at the Company’s owned or contracted facilities. The compliance and container system is mailed or delivered by an alternative logistics provider to the Company’s owned or contracted facilities at which point the destruction or conversion and proof of receipt and treatment are performed on the container. Consideration received and allocated to the transportation and treatment performance obligation is recorded as a contract liability until the services are performed. Through regression analysis of historical data, the Company has determined that a certain percentage of all compliance and container systems sold may not be returned. Accordingly, a portion of the return transportation and treatment element is recognized at the point of sale. Furthermore, the current and long-term portions of amounts historically referred to deferred revenues (shown as Contract Liability on the condensed consolidated balance sheets) are determined through regression analysis and historical trends. The VMI program includes terms that meet the “bill and hold” criteria and as such are recognized when the order is placed, title has transferred, there are no acceptance provisions and amounts are segregated in the Company’s warehouse for the customer. Revenue Recognition: In May 2014 and as subsequently amended, guidance for revenue recognition was issued which supersedes the revenue recognition requirements previously followed by the Company. The new guidance provides for a single five-step model to be applied in determining the amount and timing of the recognition of revenue related to contracts with customers. The new standard also requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts. The Company adopted the standard on July 1, 2018 using the modified retrospective approach, which involves retrospectively adopting the standard by recording a cumulative effect adjustment for all uncompleted contracts at July 1, 2018. This cumulative effect was $0.3 million which decreased accumulated deficit (and increased stockholders' equity) and increased contract assets by $0.3 million . The impact that the new accounting guidance had on its consolidated financial statements and related disclosures included the following: • The transportation and treatment performance obligations related to the mail back and unused medication solutions, which were historically accounted for as separate performance obligations, will be accounted for as a single performance obligation under the new revenue recognition guidance. The impact of this was not material. • Certain costs associated with obtaining long-term contracts with customers will be capitalized and amortized over the expected economic life of the contract in future periods. The impact of this was not material. • The new guidance changed the timing of revenue recognition on certain of the Company’s vendor managed inventory contracts. This constituted a material portion of the cumulative effect noted above as under the new guidance, revenue recognition is no longer limited to the amounts that may be billed to the customer at the point in time in which performance obligations are satisfied. • The Company made a number of practical expedient elections related to the new accounting guidance, including: (i) right to invoice practical expedient that allows revenue for route-based pickup services to be recognized in the amount to which the Company has a right to invoice over time; (ii) sales and use taxes have been excluded from the transaction price; (iii) for incremental costs to obtain a contract that would be recognized over one year or less, the Company expenses those costs as incurred; and (iv) at the implementation date, new guidance was applied only to contracts that were not completed as of the date of initial application. |
Business Combinations | Business Combinations : The Company includes the results of operations of the businesses that are acquired as of the respective dates of acquisition. The Company allocates the fair value of the purchase price of acquisitions to the assets acquired and liabilities assumed based on their estimated fair values. The Company estimates and records the fair value of purchased intangible assets, which primarily consists of customer relationships, trade-names, and non-competes. The excess of the fair value of the purchase price over the fair values of these identifiable assets, both tangible and intangible, and liabilities is recorded as goodwill. |
Income Taxes | Income Taxes : Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is established when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The establishment of a valuation allowance requires significant judgment and is impacted by various estimates. Both positive and negative evidence, as well as the objectivity and verifiability of that evidence, is considered in determining the appropriateness of recording a valuation allowance on deferred tax assets. A valuation allowance has been recorded to reduce the Company’s deferred tax assets to an amount that is more likely than not to be realized and is based upon the uncertainty of the realization of certain federal and state deferred tax assets related to net operating loss carryforwards and other tax attributes. The Company is subject to income taxes in the United States and in numerous state tax jurisdictions. Significant judgment is required in evaluating the Company’s tax positions and determining its provision for income taxes. The Company accounts for uncertain tax positions in accordance with FASB ASC 740, which prescribes the minimum recognition threshold a tax position taken or expected to be taken in a tax return is required to meet before being recognized in the financial statements. The Company has not recognized any material uncertain tax positions for the years ended June 30, 2019 , 2018 and 2017 . Tax return filings which are subject to review by federal and state tax authorities by jurisdiction are as follows: • United States – fiscal years ended June 30, 2016 and after • State of Texas – fiscal years ended June 30, 2014 and after • State of Georgia – fiscal years ended June 30, 2016 and after • State of Pennsylvania – fiscal years ended June 30, 2016 and after • Other States – fiscal years ended June 30, 2015 and after None of the Company’s federal or state tax returns are currently under examination. The Company records income tax related interest and penalties, if applicable, as a component of the provision for income tax expense. |
Accounts Receivable | Accounts Receivable : Accounts receivable consist primarily of amounts due to the Company from normal business activities. Accounts receivable balances are determined to be delinquent when the amount is past due based on the contractual terms with the customer. The Company maintains an allowance for doubtful accounts to reflect the likelihood of not collecting certain accounts receivable based on past collection history and specific risks identified among uncollected accounts. Accounts receivable are charged to the allowance for doubtful accounts when the Company determines that the receivable will not be collected and/or when the account has been referred to a third-party collection agency. |
Stock-Based Compensation | Stock-Based Compensation: Stock-based compensation cost for options and restricted stock awarded to employees and directors is measured at the grant date based on the calculated fair value of the award and is recognized as an expense over the requisite service period (generally the vesting period of the equity grant). Total stock-based compensation expense for the fiscal years ended June 30, 2019 , 2018 and 2017 are as follows: Year Ended June 30, 2019 2018 2017 Stock-based compensation expense included in: Cost of revenue $ 9 $ 43 $ 41 Selling, general and administrative 391 433 455 Total $ 400 $ 476 $ 496 The Company estimates the fair value of restricted stock awards based on the closing price of the Company’s common stock on the date of the grant. The Company estimates the fair value of stock options using the Black-Scholes valuation model. Key input assumptions used to estimate the fair value of stock options include the exercise price of the award, the expected option term, the expected volatility of the Company’s stock over the option’s expected term, the risk free interest rate over the option’s expected term and the Company’s expected annual dividend yield. The risk free interest rate is derived using the U.S. Treasury yield curve in effect at date of grant. Volatility, expected life and dividend yield are based on historical experience and activity. The fair value of the Company’s stock options was estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions: Year Ended June 30, 2019 2018 2017 Weighted average risk-free interest rate 2.6 % 1.2 % 1.1 % Weighted average expected volatility 44 % 48 % 47 % Weighted average expected life (in years) 3.08 3.03 5.15 Dividend yield — — — The Company considers an estimated forfeiture rate for stock options based on historical experience and the anticipated forfeiture rates during the future contract life. |
Cash | Cash : The Company maintains funds in bank accounts that, at times, may exceed the limit insured by the Federal Deposit Insurance Corporation (“FDIC”). The risk of loss attributable to these uninsured balances is mitigated by depositing funds only in high credit quality financial institutions. The Company has not experienced any losses in such accounts. |
Inventory | Inventory : Inventory consists primarily of raw materials and finished goods held for sale and are stated at the lower of cost or net realizable value using the average cost method. The Company periodically reviews the value and classification of items in inventory and provides write-downs or write-offs of inventory based on its assessment of physical deterioration, obsolescence, changes in price levels and other causes. |
Property, Plant and Equipment | Property, Plant and Equipment : Property, plant and equipment, including third party software and implementation costs, is stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method based on the estimated useful lives of the assets. Additions, improvements and renewals significantly adding to the asset value or extending the life of the asset are capitalized. Ordinary maintenance and repairs, which do not extend the physical or economic life of the property or equipment, are charged to expense as incurred. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in the results of operations for the period. Computer and software development costs, which include costs of computer software developed or obtained for internal use, all programming, implementation and costs incurred with developing internal-use software, are capitalized during the development project stage. External direct costs of materials and services consumed in developing or obtaining internal-use computer software are capitalized. The Company expenses costs associated with developing or obtaining internal-use software during the preliminary project stage. Training and maintenance costs associated with system changes or internal-use software are expensed as incurred. Additionally, the costs of data cleansing, reconciliation, balancing of old data to the new system, creation of new/additional data and data conversion costs are expensed as incurred. |
Impairment of Long-lived Assets | Impairment of Long-lived Assets : The Company evaluates the recoverability of property, plant and equipment and intangible or other assets if facts and circumstances indicate that any of those assets might be impaired. If an evaluation is required, the estimated future undiscounted cash flows associated with the asset are compared to the asset’s carrying amount to determine if a write-down to fair value is necessary. |
Goodwill and Other Identifiable Intangible Assets | Goodwill and Other Identifiable Intangible Assets: Finite-lived intangible assets are amortized over their respective estimated useful lives and evaluated for impairment periodically whenever events or changes in circumstances indicate that their related carrying values may not be fully recoverable. Goodwill is assessed for impairment at least annually. The Company generally performs its annual goodwill impairment analysis using a quantitative approach. The quantitative goodwill impairment test identifies the existence of potential impairment by comparing the fair value of our single reporting unit with its carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying value, the reporting unit’s goodwill is considered not to be impaired. If the carrying value of a reporting unit exceeds its fair value, an impairment charge is recognized in an amount equal to that excess. The impairment charge recognized is limited to the amount of goodwill present in our single reporting unit. These estimates and assumptions could have a significant impact on whether or not an impairment charge is recognized and the amount of any such charge. The Company performs its annual impairment assessment of goodwill during the fourth quarter of each fiscal year. |
Intangible Assets | Intangible Assets : Intangible assets consist of (i) acquired customer relationships, (ii) permit costs related to the Company’s treatment facilities and transfer stations, (iii) twelve patents and (iv) defense costs related to certain existing patents. |
Advertising Costs | Advertising Costs : Advertising costs are charged to expenses when incurred and totaled $0.9 million , $0.7 million and $0.8 million for the fiscal years ended June 30, 2019 , 2018 and 2017 , respectively. |
Research and Development Costs | Research and Development Costs : Research and development costs are charged to expense when incurred. Research activities represent an important part of the Company’s business and include both internal labor costs and payments to third parties related to the processes of discovering, testing and developing new products, improving existing products, as well as demonstrating product efficacy and regulatory compliance prior to launch of new products and services. |
Employee Benefit Plans | Employee Benefit Plans : In addition to group health-related benefits, the Company maintains a 401(k) employee savings plan available to all full-time employees. The Company matches a portion of employee contributions with cash ( 25% of employee contribution up to 6% ). Company contributions to the 401(k) plan were less than $0.1 million in each of the fiscal years ended June 30, 2019 , 2018 and 2017 , respectively and are included in selling, general and administrative expenses. For purposes of the group health benefit plan and beginning February 1, 2016, the Company self-insures an amount equal to the excess of the employees’ deductible (range from $2,500 for each individual and family member covered) up to the amount by which the third-party insurance coverage begins (ranges from $2,500 for individual up to $10,000 for family coverage). The amount of liability at June 30, 2019 and 2018 was less than $0.1 million and is included in accrued liabilities. The Company also has an incentive plan for executives of the Company, which provides for performance based cash and stock-based compensation awards. |
Net Income (Loss) Per Share | Net Income (Loss) Per Share : Basic earnings per share excludes dilution and is determined by dividing net income (loss) by the weighted average number of common shares outstanding including participating securities during the period. Diluted EPS reflects the potential dilution that could occur if securities and other contracts to issue common stock were exercised or converted into common stock. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments : The Company considers the fair value of all financial instruments, including cash, accounts receivable and accounts payable to approximate their carrying values at year-end due to their short-term nature. The carrying value of the Company’s debt approximates fair value due to the market rates of interest. |
Fair Value Measurements | Fair Value Measurements : The Company employs a hierarchy which prioritizes the inputs used to measure recurring fair value into three distinct categories based on the lowest level of input that is significant to the fair value measurement. In accordance with GAAP, the methodology for categorizing assets and liabilities that are measured at fair value pursuant to this hierarchy gives the highest priority to unadjusted quoted prices in active markets and the lowest levels to unobservable inputs, summarized as follows: • Level 1 – Quoted prices in active markets for identical assets or liabilities. • Level 2 – Other significant observable inputs (including quoted prices in active markets for similar assets or liabilities). • Level 3 – Significant unobservable inputs (including our own assumptions in determining fair value). We use the cost, income or market valuation approaches to estimate the fair value of our assets and liabilities when insufficient market-observable data is available to support our valuation assumptions. |
Segment Reporting | Segment Reporting : The Company operates in a single segment, focusing on developing cost-effective management solutions for medical waste and unused dispensed medications generated by small and medium quantity generators. |
Use of Estimates | Use of Estimates : The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expense during the reporting period. The Company uses estimates to determine many reported amounts, including but not limited to allowance for doubtful accounts, recoverability of long-lived assets and intangibles, useful lives used in depreciation and amortization, income taxes and valuation allowances, stock-based compensation, fair values of assets and liabilities acquired in business combinations, selling price used in multiple-deliverable arrangements and return rates used to estimate the percentage of container systems sold that will not be returned. Actual results could differ from these estimates. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards : In February 2016, guidance for leases was issued, which requires balance sheet recognition of lease assets and lease liabilities for all leases. The new guidance also requires additional disclosures about the amount, timing and uncertainty of cash flows arising from leases. The provisions of the new guidance are effective for annual periods beginning after December 15, 2018 (effective July 1, 2019 for the Company), including interim periods within the reporting period, and early application is permitted. The Company has substantially completed its analysis to evaluate the impact that the new guidance will have on its consolidated financial statements and related disclosures. The Company intends to adopt the standard using the modified retrospective approach and recognize a cumulative effect adjustment to assets and liabilities for existing leases as of July 1, 2019. As a result of our analysis, the Company determined the following: • Approximately 50 leases have been identified, substantially all of which are expected to be classified as operating leases. For these real estate, equipment and vehicle operating leases, we expect to recognize new right of use (“ROU”) assets and lease liabilities on our balance sheet. • The Company intends to apply the package of practical expedients to not reassess prior conclusions related to (i) contracts containing leases, (ii) lease classification and (iii) initial direct costs. The Company will not adopt the practical expediency surrounding the use of hindsight to determine lease term, termination and purchase options, or in assessing impairment of ROU assets. • The Company also intends to make the accounting policy election for short-term leases, or leases with terms of twelve months or less, therefore the lease payments will be recorded as an expense on a straight-line basis over the lease term with no ROU asset or lease liability recorded. • The Company has elected to exclude non-lease components of a lease arrangement from the ROU asset and liability for certain asset classes such as real estate and field equipment leases but will include non-lease components of a lease arrangement in the ROU asset and liability for office equipment and automobiles. On adoption, we currently expect to recognize additional operating liabilities ranging from $4.0 million to $5.0 million , with corresponding ROU assets of the same amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of revenue by solution | The components of revenues by solution which reflect a disaggregation of revenue by contract type are as follows (dollar amounts in thousands): Year Ended June 30, 2019 % Total 2018 (2) % Total 2017 (2) % Total REVENUES BY SOLUTION: Mailbacks $ 24,501 55.2 % $ 22,272 55.5 % $ 24,625 64.5 % Route-based pickup services 9,029 20.4 % 7,492 18.7 % 6,348 16.6 % Unused medications 6,936 15.7 % 5,907 14.7 % 3,377 8.8 % Third party treatment services 290 0.7 % 891 2.2 % 413 1.1 % Other (1) 3,556 8.0 % 3,579 8.9 % 3,425 9.0 % Total revenues $ 44,312 100.0 % $ 40,141 100.0 % $ 38,188 100.0 % (1) The Company’s other products include IV poles, accessories, containers, asset return boxes and other miscellaneous items with single performance obligations. (2) Certain prior year amounts have been reclassified to conform to current year presentation. |
Schedule of impact of new accounting guidance | The impact of adopting the new accounting guidance on the Company's consolidated statement of operations for the year ended June 30, 2019 was as follows (in thousands): Year Ended June 30, 2019 As Reported Adjustments Balance Without Adoption Revenues $ 44,312 $ 267 $ 44,579 Cost of revenues 31,042 162 31,204 Gross profits 13,270 105 13,375 Selling, general and administrative 12,003 49 12,052 Operating income 447 56 503 Net income $ 214 $ 56 $ 270 The impact of adopting the new accounting guidance on the Company's consolidated balance sheet as of June 30, 2019 was as follows (in thousands): June 30, 2019 As Reported Adjustments Balance Without Adoption Current contract asset $ 260 $ (260 ) $ — Prepaid and other current assets 922 (49 ) 873 Total current assets 18,753 (309 ) 18,444 Total assets 36,040 (309 ) 35,731 Current contract liability (1) 2,502 (27 ) 2,475 Total current liabilities 8,178 (27 ) 8,151 Contract liability, net of current portion (1) 503 — 503 Total liabilities 9,914 (27 ) 9,887 Accumulated deficit (1,505 ) (282 ) (1,787 ) Total stockholders' equity 26,126 (282 ) 25,844 Total liabilities and stockholders' equity $ 36,040 $ (309 ) $ 35,731 (1): Prior period contract liabilities were referred to as deferred revenue. |
Allowance for doubtful accounts | See rollforward of allowance activity below: Allowance for Doubtful Accounts Balance Beginning of Year Charges to Expense Write-offs /Recoveries Balance End of Year 2019 $ 102 $ 81 $ (51 ) $ 132 2018 $ 78 $ 62 $ (38 ) $ 102 2017 $ 63 $ 20 $ (5 ) $ 78 |
Schedule of stock-based compensation expense | Total stock-based compensation expense for the fiscal years ended June 30, 2019 , 2018 and 2017 are as follows: Year Ended June 30, 2019 2018 2017 Stock-based compensation expense included in: Cost of revenue $ 9 $ 43 $ 41 Selling, general and administrative 391 433 455 Total $ 400 $ 476 $ 496 |
Schedule of stock option valuation assumptions | The fair value of the Company’s stock options was estimated on the grant date using the Black-Scholes option-pricing model with the following assumptions: Year Ended June 30, 2019 2018 2017 Weighted average risk-free interest rate 2.6 % 1.2 % 1.1 % Weighted average expected volatility 44 % 48 % 47 % Weighted average expected life (in years) 3.08 3.03 5.15 Dividend yield — — — |
Schedule of accrued liabilities | The components of Accrued Liabilities on the balance sheet as of June 30, 2019 and 2018 are as follows: As of June 30, 2019 2018 Accrued payroll $ 376 $ 389 Customer-related payables 341 334 Accrued rebates 493 327 Other 1,003 1,011 Total $ 2,213 $ 2,061 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment | At June 30, 2019 and 2018 , property, plant and equipment consisted of the following (in thousands): June 30, Useful Life 2019 2018 Furniture and fixtures 3 to 5 years $ 245 $ 245 Plant and equipment 3 to 17 years 8,683 8,241 Manufacturing 15 years 169 169 Computers and software 3 to 5 years 2,179 2,064 Leasehold improvements Life of Lease 2,792 2,729 Land 19 19 Construction-in-progress 275 716 14,362 14,183 Less: accumulated depreciation 8,495 7,611 Net property, plant and equipment $ 5,867 $ 6,572 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of income tax expense (benefit) | The components of income tax expense (benefit) are as follows (in thousands): Year ended June 30, 2019 2018 2017 Current: Federal $ (123 ) $ — $ — State 42 29 4 Total Current $ (81 ) $ 29 $ 4 Deferred: Federal $ 217 $ (8 ) $ — State 34 — — Total Deferred 251 (8 ) — Net Income Tax Expense $ 170 $ 21 $ 4 |
Effective income tax rate reconciliation | The reconciliation of the statutory income tax rate to the Company’s effective income tax rate for the fiscal years ended June 30, 2019 , 2018 and 2017 is as follows : Year Ended June 30, 2019 2018 2017 Statutory rate 21.0 % 27.6 % 34.0 % State income taxes, net 22.9 % (3.7 )% (4.5 )% Impact of 2017 tax reform — % (107.0 )% — % Meals and entertainment 2.7 % (1.8 )% (1.5 )% Stock-based compensation 16.1 % 22.6 % — % Research and development credits 7.3 % 22.4 % — % Other 1.5 % (2.0 )% 0.2 % Effective rate before valuation allowance 71.5 % (41.9 )% 28.2 % Change in valuation allowance (27.2 )% 38.7 % (28.5 )% Effective tax rate 44.3 % (3.2 )% (0.3 )% |
Components of deferred tax assets and liabilities | At June 30, 2019 and 2018 , the significant components of deferred tax assets and liabilities are as follows (in thousands): June 30, 2019 2018 Deferred tax assets relating to: Stock-based compensation $ 261 $ 283 AMT and research and development credits 517 668 Deferred rent 41 58 Inventory 158 147 Professional fees 124 91 Accrued vacation 27 31 Accounts receivable allowance 33 26 Contribution carryovers 8 13 Net operating loss carryforwards 1,067 1,153 Total deferred tax assets 2,236 2,470 Deferred tax liabilities related to depreciable and amortizable assets (728 ) (587 ) Deferred tax liabilities related to other items (63 ) — Net deferred tax assets before valuation allowance 1,445 1,883 Valuation allowance (1,688 ) (1,875 ) Net deferred tax (liability) asset $ (243 ) $ 8 |
NOTES PAYABLE AND LONG-TERM D_2
NOTES PAYABLE AND LONG-TERM DEBT (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | At June 30, 2019 , long-term debt consisted of the following (in thousands): Acquisition loan, bearing interest at 5.05%, monthly payments of $43; maturing March 2022. $ 1,465 Less: current portion 517 Long-term debt, net of current portion $ 948 |
Schedule of payments due on long-term debt | Payments due on long-term debt over the five years subsequent to June 30, 2019 are as follows (in thousands): Twelve Months Ending June 30, 2020 $ 517 2021 517 2022 431 $ 1,465 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of activity for all restricted stock | The summary of activity for all restricted stock during the fiscal years ended June 30, 2019 , 2018 and 2017 is presented in the table below (in thousands): Year ended June 30, 2019 2018 2017 Unvested at beginning of the year 13 13 13 Granted 63 53 53 Vested (55 ) (53 ) (53 ) Forfeited (8 ) — — Unvested at end of the year 13 13 13 |
Schedule of activity for all stock options | The summary of activity for all stock options during the fiscal years ended June 30, 2019 , 2018 and 2017 is presented in the table below (in thousands except per share amounts): Options Outstanding Weighted Average Exercise Price Options Outstanding at June 30, 2016 1,290 $ 4.69 Granted 38 $ 4.55 Exercised (95 ) $ 3.60 Forfeited or canceled (368 ) $ 5.32 Options Outstanding at June 30, 2017 865 $ 4.53 Granted 137 $ 4.79 Forfeited or canceled (82 ) $ 4.50 Options Outstanding at June 30, 2018 920 $ 4.57 Granted 578 $ 3.73 Forfeited or canceled (218 ) $ 4.16 Options Outstanding at June 30, 2019 1,280 $ 4.26 Options Exercisable at June 30, 2019 591 $ 4.67 |
Schedule of information about stock options outstanding | The following table summarizes information about stock options outstanding as of June 30, 2019 (in thousands except per share amounts): Options Outstanding Range of Exercise Outstanding as of June 30, 2019 Weighted Average Remaining Life (in Years) Weighted Average Exercise Price $2.51 - $3.75 107 4.77 $ 3.18 $3.76 - $5.00 1,044 4.70 $ 4.17 $5.01 - $7.50 129 2.81 $ 5.95 1,280 $ 4.26 |
Schedule of information about stock options exercisable | The following table summarizes information about stock options exercisable as of June 30, 2019 (in thousands except per share amounts): Options Exercisable Range of Exercise Price Exercisable as of June 30, 2019 Weighted Average Remaining Life (in Years) Weighted Average Exercise Price $2.51 - $3.75 32 0.57 $ 2.92 $3.76 - $5.00 437 2.41 $ 4.45 $5.01 - $7.50 122 2.78 $ 5.90 591 $ 4.67 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating lease obligations | Future minimum lease payments under non-cancelable operating leases as of June 30, 2019 are as follows (in thousands): Year Ended June 30, 2020 2021 2022 2023 2024 Total Operating lease obligations $ 2,059 $ 1,322 $ 532 $ 155 $ 38 $ 4,106 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per share | The following information is necessary to calculate earnings per share for the periods presented (in thousands, except per share amounts): Year ended June 30, 2019 2018 2017 Net income (loss), as reported $ 214 $ (672 ) $ (1,293 ) Weighted average common shares outstanding 16,116 16,055 15,949 Effect of dilutive stock options 7 — — Weighted average diluted common shares outstanding 16,123 16,055 15,949 Net income (loss) per common share Basic and diluted $ 0.01 $ (0.04 ) $ (0.08 ) Employee stock options excluded from computation of diluted income per share amounts because their effect would be anti-dilutive 1,173 402 304 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets, amortization expense | At June 30, 2019 and 2018 , intangible assets consisted of the following (in thousands): June 30, 2019 2018 Estimated Useful Lives Original Amount Accumulated Amortization Net Amount Original Amount Accumulated Amortization Net Amount Customer relationships 7 years $ 3,007 $ (1,348 ) $ 1,659 $ 3,007 $ (919 ) $ 2,088 Permits 6 - 15 years 1,704 (492 ) 1,212 1,459 (390 ) 1,069 Patents 5 - 17 years 420 (296 ) 124 383 (278 ) 105 Tradename 7 years 270 (116 ) 154 270 (77 ) 193 Non-compete 5 years 117 (70 ) 47 117 (47 ) 70 Total intangible assets, net $ 5,518 $ (2,322 ) $ 3,196 $ 5,236 $ (1,711 ) $ 3,525 |
Schedule of future amortization of intangible assets | As of June 30, 2019 , future amortization of intangible assets is as follows (in thousands): Year Ending June 30, 2020 612 2021 636 2022 611 2023 551 2024 140 Thereafter 646 $ 3,196 |
SELECTED QUARTERLY FINANCIAL _2
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information | The following tables show quarterly financial information for the years ended June 30, 2019 and 2018 . The Company believes that all necessary adjustments have been included in the amounts below to present fairly the results of such periods (in thousands expect per share amounts). Quarter Ended September 30, December 31, March 31, June 30, Total revenues $ 10,293 $ 12,394 $ 9,451 $ 12,174 Gross profit $ 3,352 $ 3,991 $ 2,035 $ 3,892 Operating income (loss) $ 125 $ 827 $ (1,073 ) $ 568 Net income (loss) $ 70 $ 779 $ (1,125 ) $ 490 Net income (loss) per share - basic and diluted $ 0.00 $ 0.05 $ (0.07 ) $ 0.03 Weighted average shares - diluted 16,089 16,106 16,138 16,150 Quarter Ended September 30, December 31, March 31, June 30, Total revenues $ 9,683 $ 11,119 $ 9,427 $ 9,912 Gross profit $ 3,028 $ 3,131 $ 2,296 $ 2,947 Operating income (loss) $ 101 $ 107 $ (707 ) $ (78 ) Net income (loss) $ 75 $ 156 $ (757 ) $ (146 ) Net income (loss) per share - basic and diluted $ 0.00 $ 0.01 $ (0.05 ) $ (0.01 ) Weighted average shares - diluted 16,093 16,068 16,082 16,082 |
ORGANIZATION AND BACKGROUND (De
ORGANIZATION AND BACKGROUND (Details) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019USD ($)customerstate_region | Jun. 30, 2018USD ($)customer | Jun. 30, 2017customer | |
Concentration Risk [Line Items] | |||
Number of state regions where route-based pick-up services are offered | state_region | 24,000 | ||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% |
Accounts receivable | $ | $ 9,289 | $ 6,370 | |
Customer concentration risk | Revenue | |||
Concentration Risk [Line Items] | |||
Number of customers | customer | 2 | 1 | 1 |
Concentration risk, percentage | 27.00% | ||
Credit concentration risk | Accounts receivable | |||
Concentration Risk [Line Items] | |||
Number of customers | customer | 1 | ||
One customer | Customer concentration risk | Revenue | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 17.00% | 17.00% | |
One customer | Credit concentration risk | Accounts receivable | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 19.00% | 13.00% | |
Accounts receivable | $ | $ 1,700 | $ 800 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jul. 01, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Property, Plant and Equipment [Line Items] | |||||
Cumulative effect of new accounting standard | $ 338 | ||||
Decrease to accumulated deficit | $ (1,505) | $ (2,057) | |||
Increase to stockholders' equity | 26,126 | 25,174 | $ 25,287 | $ 23,843 | |
Revenue recorded from bill and hold inventory | 2,700 | 2,400 | |||
Bill and hold inventory | 1,900 | 2,100 | |||
Contract asset | 260 | 0 | |||
Contract liability | 2,502 | 1,894 | |||
Contract liability, net of current portion | 503 | 470 | |||
Capitalized contract cost, incremental costs to obtain contracts | 59 | ||||
Capitalized contract cost, amortization | 10 | ||||
Retained Earnings | |||||
Property, Plant and Equipment [Line Items] | |||||
Cumulative effect of new accounting standard | 338 | ||||
Increase to stockholders' equity | (1,505) | $ (2,057) | $ (1,385) | $ (92) | |
Adjustments | Accounting Standards Update 2014-09 | |||||
Property, Plant and Equipment [Line Items] | |||||
Cumulative effect of new accounting standard | 300 | ||||
Decrease to accumulated deficit | (282) | 300 | |||
Increase to stockholders' equity | (282) | 300 | |||
Increase to contract asset | $ 300 | ||||
Contract asset | (260) | ||||
Contract liability | (27) | ||||
Contract liability, net of current portion | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Revenue by Solution (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 44,312 | $ 40,141 | $ 38,188 |
Revenue Percentage | 100.00% | 100.00% | 100.00% |
Mailbacks | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 24,501 | $ 22,272 | $ 24,625 |
Revenue Percentage | 55.20% | 55.50% | 64.50% |
Route-based pickup services | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 9,029 | $ 7,492 | $ 6,348 |
Revenue Percentage | 20.40% | 18.70% | 16.60% |
Unused medications | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 6,936 | $ 5,907 | $ 3,377 |
Revenue Percentage | 15.70% | 14.70% | 8.80% |
Third party treatment services | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 290 | $ 891 | $ 413 |
Revenue Percentage | 0.70% | 2.20% | 1.10% |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Total revenues | $ 3,556 | $ 3,579 | $ 3,425 |
Revenue Percentage | 8.00% | 8.90% | 9.00% |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Impact of New Accounting Guidance (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jul. 01, 2018 | Jun. 30, 2016 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Current contract asset | $ 260 | $ 0 | $ 260 | $ 0 | |||||||||
Prepaid and other current assets | 922 | 739 | 922 | 739 | |||||||||
Total current assets | 18,753 | 16,250 | 18,753 | 16,250 | |||||||||
Total assets | 36,040 | 33,231 | 36,040 | 33,231 | |||||||||
Contract liability | 2,502 | 1,894 | 2,502 | 1,894 | |||||||||
Total current liabilities | 8,178 | 5,992 | 8,178 | 5,992 | |||||||||
CONTRACT LIABILITY, net of current portion | 503 | 470 | 503 | 470 | |||||||||
Total liabilities | 9,914 | 8,057 | 9,914 | 8,057 | |||||||||
Accumulated deficit | (1,505) | (2,057) | (1,505) | (2,057) | |||||||||
Total stockholders' equity | 26,126 | 25,174 | 26,126 | 25,174 | $ 25,287 | $ 23,843 | |||||||
Total liabilities and stockholders' equity | 36,040 | 33,231 | 36,040 | 33,231 | |||||||||
Revenues | 44,312 | 40,141 | 38,188 | ||||||||||
Cost of revenues | 31,042 | 28,739 | 26,351 | ||||||||||
Gross profits | 3,892 | $ 2,035 | $ 3,991 | $ 3,352 | 2,947 | $ 2,296 | $ 3,131 | $ 3,028 | 13,270 | 11,402 | 11,837 | ||
Selling, general and administrative | 12,003 | 11,168 | 12,223 | ||||||||||
Operating income | 568 | (1,073) | 827 | 125 | (78) | (707) | 107 | 101 | 447 | (577) | (1,187) | ||
Net income | 490 | $ (1,125) | $ 779 | $ 70 | $ (146) | $ (757) | $ 156 | $ 75 | 214 | $ (672) | $ (1,293) | ||
Adjustments | Accounting Standards Update 2014-09 | |||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Current contract asset | (260) | (260) | |||||||||||
Prepaid and other current assets | (49) | (49) | |||||||||||
Total current assets | (309) | (309) | |||||||||||
Total assets | (309) | (309) | |||||||||||
Contract liability | (27) | (27) | |||||||||||
Total current liabilities | (27) | (27) | |||||||||||
CONTRACT LIABILITY, net of current portion | 0 | 0 | |||||||||||
Total liabilities | (27) | (27) | |||||||||||
Accumulated deficit | (282) | (282) | $ 300 | ||||||||||
Total stockholders' equity | (282) | (282) | $ 300 | ||||||||||
Total liabilities and stockholders' equity | (309) | (309) | |||||||||||
Revenues | 267 | ||||||||||||
Cost of revenues | 162 | ||||||||||||
Gross profits | 105 | ||||||||||||
Selling, general and administrative | 49 | ||||||||||||
Operating income | 56 | ||||||||||||
Net income | 56 | ||||||||||||
Balance Without Adoption | |||||||||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||||||||||||
Current contract asset | 0 | 0 | |||||||||||
Prepaid and other current assets | 873 | 873 | |||||||||||
Total current assets | 18,444 | 18,444 | |||||||||||
Total assets | 35,731 | 35,731 | |||||||||||
Contract liability | 2,475 | 2,475 | |||||||||||
Total current liabilities | 8,151 | 8,151 | |||||||||||
CONTRACT LIABILITY, net of current portion | 503 | 503 | |||||||||||
Total liabilities | 9,887 | 9,887 | |||||||||||
Accumulated deficit | (1,787) | (1,787) | |||||||||||
Total stockholders' equity | 25,844 | 25,844 | |||||||||||
Total liabilities and stockholders' equity | $ 35,731 | 35,731 | |||||||||||
Revenues | 44,579 | ||||||||||||
Cost of revenues | 31,204 | ||||||||||||
Gross profits | 13,375 | ||||||||||||
Selling, general and administrative | 12,052 | ||||||||||||
Operating income | 503 | ||||||||||||
Net income | $ 270 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounts Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance Beginning of Year | $ 102 | $ 78 | $ 63 |
Charges to Expense | 81 | 62 | 20 |
Write-offs /Recoveries | (51) | (38) | (5) |
Balance End of Year | $ 132 | $ 102 | $ 78 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Stock-Based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 400 | $ 476 | $ 496 |
Valuation assumptions [Abstract] | |||
Weighted average risk-free interest rate | 2.60% | 1.20% | 1.10% |
Weighted average expected volatility | 44.00% | 48.00% | 47.00% |
Weighted average expected life (in years) | 3 years 29 days | 3 years 11 days | 5 years 1 month 24 days |
Dividend yield | 0.00% | 0.00% | 0.00% |
Cost of revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 9 | $ 43 | $ 41 |
Selling, general and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 391 | $ 433 | $ 455 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Inventory (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Inventory [Abstract] | |||
Total inventory | $ 4,800,000 | $ 4,000,000 | |
Finished goods | 3,500,000 | 2,700,000 | |
Raw materials | 1,300,000 | 1,300,000 | |
Inventory, current | 3,770,000 | 3,986,000 | |
Inventory write-offs | $ 55,000 | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Goodwill and Other Identifiable Intangible Assets (Details) | 12 Months Ended | 253 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2019patent | |
Intangible Assets [Abstract] | ||||
Goodwill impairment loss | $ | $ 0 | $ 0 | $ 0 | |
Number of patents acquired | patent | 12 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Accounting Policies [Abstract] | ||
Accrued payroll | $ 376 | $ 389 |
Customer-related payables | 341 | 334 |
Accrued rebates | 493 | 327 |
Other | 1,003 | 1,011 |
Total | $ 2,213 | $ 2,061 |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Impairment of Long-lived Assets, Advertising Costs and Research and Development Costs (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accounting Policies [Abstract] | |||
Asset impairment losses recognized | $ 0 | $ 0 | $ 0 |
Advertising costs | 900,000 | 700,000 | 800,000 |
Research and development expenses paid to third parties, less than | $ 100,000 | $ 100,000 | $ 100,000 |
SUMMARY OF SIGNIFICANT ACCOU_13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Employee Benefit Plans (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Employers match percentage | 25.00% | ||
Maximum annual percentage contribution per employee | 6.00% | ||
Company contributions to the 401(k) plan, less than | $ 100,000 | $ 100,000 | $ 100,000 |
Prior group health benefit plan, individual deductible | 2,500 | ||
Group health benefit plan, family deductible | 2,500 | ||
Group health benefit plan, third party insurance company coverage beginning amount, individual | 2,500 | ||
Group health benefit plan, third party insurance company coverage beginning amount, family | 10,000 | ||
Self-insured liability, health insurance, less than | 100,000 | 100,000 | |
Executive officer | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Aggregate stock-based compensation expense | $ 0 | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOU_14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recently Issued Accounting Standards (Details) $ in Millions | Jul. 01, 2019USD ($)contract |
Forecast | Accounting Standards Update 2016-02 | Minimum | |
Lessee, Lease, Description [Line Items] | |
Operating liabilities | $ 4 |
ROU assets | 4 |
Forecast | Accounting Standards Update 2016-02 | Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating liabilities | 5 |
ROU assets | $ 5 |
Subsequent Event | |
Lessee, Lease, Description [Line Items] | |
Number of leases | contract | 50 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | $ 14,362 | $ 14,183 | |
Less: accumulated depreciation | 8,495 | 7,611 | |
Net property, plant and equipment | 5,867 | 6,572 | |
Depreciation expense | 1,100 | 1,000 | $ 900 |
Depreciation included in cost of revenues | 800 | 800 | $ 700 |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | $ 245 | 245 | |
Furniture and fixtures | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life | 3 years | ||
Furniture and fixtures | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life | 5 years | ||
Plant and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | $ 8,683 | 8,241 | |
Plant and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life | 3 years | ||
Plant and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life | 17 years | ||
Manufacturing | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life | 15 years | ||
Gross property, plant and equipment | $ 169 | 169 | |
Computers and software | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | $ 2,179 | 2,064 | |
Computers and software | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life | 3 years | ||
Computers and software | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful Life | 5 years | ||
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | $ 2,792 | 2,729 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | 19 | 19 | |
Construction-in-progress | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | $ 275 | $ 716 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Current: | |||
Federal | $ (123) | $ 0 | $ 0 |
State | 42 | 29 | 4 |
Total Current | (81) | 29 | 4 |
Deferred: | |||
Federal | 217 | (8) | 0 |
State | 34 | 0 | 0 |
Total Deferred | 251 | (8) | 0 |
TOTAL INCOME TAX EXPENSE | $ 170 | $ 21 | $ 4 |
INCOME TAXES - Effective Income
INCOME TAXES - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Statutory rate | 21.00% | 27.60% | 34.00% |
State income taxes, net | 22.90% | (3.70%) | (4.50%) |
Impact of 2017 tax reform | 0.00% | (107.00%) | 0.00% |
Meals and entertainment | 2.70% | (1.80%) | (1.50%) |
Stock-based compensation | 16.10% | 22.60% | 0.00% |
Research and development credits | 7.30% | 22.40% | (0.00%) |
Other | 1.50% | (2.00%) | 0.20% |
Effective rate before valuation allowance | 71.50% | (41.90%) | 28.20% |
Change in valuation allowance | (27.20%) | 38.70% | (28.50%) |
Effective tax rate | 44.30% | (3.20%) | (0.30%) |
INCOME TAXES - Components of De
INCOME TAXES - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Income Tax Disclosure [Abstract] | ||
Stock-based compensation | $ 261 | $ 283 |
AMT and research and development credits | 517 | 668 |
Deferred rent | 41 | 58 |
Inventory | 158 | 147 |
Professional fees | 124 | 91 |
Accrued vacation | 27 | 31 |
Accounts receivable allowance | 33 | 26 |
Contribution carryovers | 8 | 13 |
Net operating loss carryforwards | 1,067 | 1,153 |
Total deferred tax assets | 2,236 | 2,470 |
Deferred tax liabilities related to depreciable and amortizable assets | (728) | (587) |
Deferred tax liabilities related to other items | (63) | 0 |
Net deferred tax assets before valuation allowance | 1,445 | 1,883 |
Valuation allowance | (1,688) | (1,875) |
Net deferred tax (liability) asset | $ (243) | |
Net deferred tax (liability) asset | $ 8 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 5,000 | |
Tax credit carryforward, amount | 500 | |
Tax credit carryforward subject to expiration | 400 | |
Tax credit carryforward not subject to expiration | 100 | |
Deferred tax assets for recoverable alternative minimum tax credits | 100 | $ 200 |
Deferred tax liability related to indefinite lived assets | 300 | 200 |
Deferred tax liability | $ 243 | |
Deferred tax asset | $ 8 |
NOTES PAYABLE AND LONG-TERM D_3
NOTES PAYABLE AND LONG-TERM DEBT - Narrative (Details) | Aug. 21, 2019USD ($) | Jun. 29, 2018USD ($) | Jun. 30, 2019USD ($) |
Line of Credit Facility [Line Items] | |||
Interest rate | 5.05% | ||
Term loan | |||
Line of Credit Facility [Line Items] | |||
Term at time of borrowing | 5 years | ||
Interest rate | 5.05% | ||
Credit Agreement | |||
Line of Credit Facility [Line Items] | |||
Extension of maturity date | 2 years | ||
Maximum borrowing capacity | $ 14,000,000 | ||
Percentage of eligible accounts receivable considered for borrowing base | 80.00% | ||
Percentage of eligible inventory considered for borrowing base | 50.00% | ||
Amount of covenant for borrowing base | $ 3,000,000 | ||
Basis spread of variable rate | 0.00% | ||
Unused capacity, commitment fee percentage | 0.25% | ||
Remaining borrowing capacity | $ 12,400,000 | ||
Credit Agreement | Maximum | |||
Line of Credit Facility [Line Items] | |||
Debt cash flow leverage ratio | 3 | ||
Credit Agreement | Minimum | |||
Line of Credit Facility [Line Items] | |||
Debt service coverage ratio | 1.15 | ||
Credit Agreement | LIBOR | |||
Line of Credit Facility [Line Items] | |||
Basis spread of variable rate | 2.50% | ||
Credit Agreement | LIBOR | Maximum | |||
Line of Credit Facility [Line Items] | |||
Basis spread of variable rate | 3.00% | ||
Credit Agreement | Working Capital | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 6,000,000 | ||
Remaining borrowing capacity | 5,900,000 | ||
Credit Agreement | Letter of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 2,000,000 | ||
Amount outstanding | 100,000 | ||
Credit Agreement | Acquisitions | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 8,000,000 | ||
Percentage of portion allocated to acquisition purchase price | 75.00% | ||
Remaining borrowing capacity | $ 6,500,000 | ||
Subsequent Event | Loan Agreement | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 3,200,000 | ||
Term at time of borrowing | 5 years | ||
Interest rate | 4.79% | ||
Interest rate at expiration of advance period | 4.15% | ||
Subsequent Event | Loan Agreement | LIBOR | |||
Line of Credit Facility [Line Items] | |||
Basis spread of variable rate | 2.50% | ||
Subsequent Event | Improvements | Loan Agreement | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 2,000,000 | ||
Amortization period by which monthly payment is determined | 20 years | ||
Subsequent Event | Equipment | Loan Agreement | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 1,200,000 | ||
Amortization period by which monthly payment is determined | 6 years |
NOTES PAYABLE AND LONG-TERM D_4
NOTES PAYABLE AND LONG-TERM DEBT - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Debt Disclosure [Abstract] | ||
Total long-term debt | $ 1,465 | |
Less: current portion | 517 | $ 537 |
Long-term debt, net of current portion | $ 948 | $ 1,465 |
Interest rate | 5.05% | |
Monthly payments | $ 43 |
NOTES PAYABLE AND LONG-TERM D_5
NOTES PAYABLE AND LONG-TERM DEBT - Payments Due on Long-term Debt (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2020 | $ 517 |
2021 | 517 |
2022 | 431 |
Total long-term debt | $ 1,465 |
EQUITY TRANSACTIONS (Details)
EQUITY TRANSACTIONS (Details) - USD ($) | Mar. 05, 2015 | Jan. 07, 2013 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Nov. 15, 2018 | Nov. 14, 2018 |
Equity [Abstract] | |||||||
Stock repurchase program, authorized amount | $ 3,000,000 | ||||||
Stock repurchase program, period | 2 years | ||||||
Stock repurchase program term extension | 2 years | ||||||
Shares repurchased (in shares) | 0 | 0 | 0 | ||||
Total shares repurchased under the program (in shares) | 295,615 | 295,615 | |||||
Total shares repurchased under the program, at cost | $ 1,554,000 | $ 1,554,000 | |||||
Issuance of common shares for lease (in shares) | 20,617 | ||||||
Price per share (in dollars per share) | $ 4 | ||||||
Non-cash lease expense | $ 46,000 | $ 37,000 | |||||
Common stock, shares authorized (in shares) | 40,000,000 | 20,000,000 | 40,000,000 | 20,000,000 |
STOCK BASED COMPENSATION - Narr
STOCK BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense for non-vested awards | $ 0.6 | ||
Weighted average period for expense recognition | 3 years 4 months 24 days | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value of granted (in dollars per share) | $ 3.53 | $ 4.17 | $ 4.38 |
Weighted average fair value vested (in dollars per share) | $ 3.69 | $ 4.22 | $ 5.29 |
2010 Stock Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of common shares authorized (in shares) | 3,000,000 | ||
2010 Stock Plan | Restricted stock and stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares outstanding (in shares) | 1,293,449 | ||
2010 Stock Plan | Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Expiration period | 7 years | ||
Options available for grant (in shares) | 1,037,862 | ||
2010 Stock Plan | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 1 year |
STOCK BASED COMPENSATION - Rest
STOCK BASED COMPENSATION - Restricted Stock Activity (Details) - Restricted Stock - shares shares in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Unvested at beginning of the year (in shares) | 13 | 13 | 13 |
Granted (in shares) | 63 | 53 | 53 |
Vested (in shares) | (55) | (53) | (53) |
Forfeited (in shares) | (8) | 0 | 0 |
Unvested at end of the year (in shares) | 13 | 13 | 13 |
STOCK BASED COMPENSATION - Stoc
STOCK BASED COMPENSATION - Stock Option Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Options Outstanding | |||
Options outstanding at beginning of period (in shares) | 920 | 865 | 1,290 |
Granted (in shares) | 578 | 137 | 38 |
Exercised (in shares) | (95) | ||
Forfeited or canceled (in shares) | (218) | (82) | (368) |
Options outstanding at end of period (in shares) | 1,280 | 920 | 865 |
Options exercisable (in shares) | 591 | ||
Weighted Average Exercise Price | |||
Options outstanding at beginning of period (in dollars per share) | $ 4.57 | $ 4.53 | $ 4.69 |
Granted (in dollars per share) | 3.73 | 4.79 | 4.55 |
Exercised (in dollars per share) | 3.60 | ||
Forfeited or canceled (in dollars per share) | 4.16 | 4.50 | 5.32 |
Options outstanding at end of period (in dollars per share) | 4.26 | $ 4.57 | $ 4.53 |
Options exercisable (in dollars per share) | $ 4.67 |
STOCK BASED COMPENSATION - Summ
STOCK BASED COMPENSATION - Summary of Stock Options Outstanding and Exercisable (Details) shares in Thousands | 12 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Options Outstanding | |
Outstanding (in shares) | shares | 1,280 |
Weighted average exercise price (in dollars per share) | $ 4.26 |
Options Exercisable | |
Exercisable (in shares) | shares | 591 |
Weighted average exercise price (in dollars per share) | $ 4.67 |
$2.51 - $3.75 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Price, minimum (in dollars per share) | 2.51 |
Range of Exercise Price, maximum (in dollars per share) | $ 3.75 |
Options Outstanding | |
Outstanding (in shares) | shares | 107 |
Weighted average remaining life | 4 years 9 months 7 days |
Weighted average exercise price (in dollars per share) | $ 3.18 |
Options Exercisable | |
Exercisable (in shares) | shares | 32 |
Weighted average remaining life | 6 months 25 days |
Weighted average exercise price (in dollars per share) | $ 2.92 |
$3.76 - $5.00 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Price, minimum (in dollars per share) | 3.76 |
Range of Exercise Price, maximum (in dollars per share) | $ 5 |
Options Outstanding | |
Outstanding (in shares) | shares | 1,044 |
Weighted average remaining life | 4 years 8 months 12 days |
Weighted average exercise price (in dollars per share) | $ 4.17 |
Options Exercisable | |
Exercisable (in shares) | shares | 437 |
Weighted average remaining life | 2 years 4 months 28 days |
Weighted average exercise price (in dollars per share) | $ 4.45 |
$5.01 - $7.50 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Price, minimum (in dollars per share) | 5.01 |
Range of Exercise Price, maximum (in dollars per share) | $ 7.50 |
Options Outstanding | |
Outstanding (in shares) | shares | 129 |
Weighted average remaining life | 2 years 9 months 22 days |
Weighted average exercise price (in dollars per share) | $ 5.95 |
Options Exercisable | |
Exercisable (in shares) | shares | 122 |
Weighted average remaining life | 2 years 9 months 11 days |
Weighted average exercise price (in dollars per share) | $ 5.90 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) | Aug. 21, 2019USD ($) | Jun. 30, 2019USD ($)Facility | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) |
Lessee, Lease, Description [Line Items] | ||||
Number of fully-permitted facilities | Facility | 2 | |||
Number of processing and treatment facilities | Facility | 1 | |||
Rent expense | $ 2,200,000 | $ 2,000,000 | $ 1,500,000 | |
Performance bonds outstanding covering financial assurance | $ 1,000,000 | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Option to renew lease, term | 1 year | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Option to renew lease, term | 5 years | |||
Subsequent Event | ||||
Lessee, Lease, Description [Line Items] | ||||
Base rent per square foot | $ 14 | |||
Base rent per square foot, annual increase | 3.00% |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Operating Lease Obligations (Details) - USD ($) $ in Thousands | Aug. 21, 2019 | Jun. 30, 2019 |
Lessee, Lease, Description [Line Items] | ||
2020 | $ 2,059 | |
2021 | 1,322 | |
2022 | 532 | |
2023 | 155 | |
2024 | 38 | |
Total | $ 4,106 | |
Subsequent Event | Pro Forma | ||
Lessee, Lease, Description [Line Items] | ||
2020 | $ 100 | |
2021 | 300 | |
2022 | 400 | |
2023 | 400 | |
2024 | 400 | |
2025 | $ 300 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net income (loss), as reported | $ 490 | $ (1,125) | $ 779 | $ 70 | $ (146) | $ (757) | $ 156 | $ 75 | $ 214 | $ (672) | $ (1,293) |
Weighted average common shares outstanding (in shares) | 16,116 | 16,055 | 15,949 | ||||||||
Effect of dilutive stock options (in shares) | 7 | 0 | 0 | ||||||||
Weighted average diluted common shares outstanding (in shares) | 16,150 | 16,138 | 16,106 | 16,089 | 16,082 | 16,082 | 16,068 | 16,093 | 16,123 | 16,055 | 15,949 |
Net income (loss) per common share | |||||||||||
Basic and diluted (in dollars per share) | $ 0.03 | $ (0.07) | $ 0.05 | $ 0 | $ (0.01) | $ (0.05) | $ 0.01 | $ 0 | $ 0.01 | $ (0.04) | $ (0.08) |
Employee stock options excluded from computation of diluted income per share amounts because their effect would be anti-dilutive (in shares) | 1,173 | 402 | 304 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Original Amount | $ 5,518 | $ 5,236 | |
Accumulated Amortization | (2,322) | (1,711) | |
Net Amount | 3,196 | 3,525 | |
Intangible assets, amortization expense | $ 600 | 600 | $ 600 |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated Useful Lives | 7 years | ||
Original Amount | $ 3,007 | 3,007 | |
Accumulated Amortization | (1,348) | (919) | |
Net Amount | 1,659 | 2,088 | |
Permits | |||
Finite-Lived Intangible Assets [Line Items] | |||
Original Amount | 1,704 | 1,459 | |
Accumulated Amortization | (492) | (390) | |
Net Amount | $ 1,212 | 1,069 | |
Permits | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated Useful Lives | 6 years | ||
Permits | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated Useful Lives | 15 years | ||
Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Original Amount | $ 420 | 383 | |
Accumulated Amortization | (296) | (278) | |
Net Amount | $ 124 | 105 | |
Patents | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated Useful Lives | 5 years | ||
Patents | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated Useful Lives | 17 years | ||
Tradename | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated Useful Lives | 7 years | ||
Original Amount | $ 270 | 270 | |
Accumulated Amortization | (116) | (77) | |
Net Amount | $ 154 | 193 | |
Non-compete | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated Useful Lives | 5 years | ||
Original Amount | $ 117 | 117 | |
Accumulated Amortization | (70) | (47) | |
Net Amount | $ 47 | $ 70 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2020 | $ 612 | |
2021 | 636 | |
2022 | 611 | |
2023 | 551 | |
2024 | 140 | |
Thereafter | 646 | |
Net Amount | $ 3,196 | $ 3,525 |
SELECTED QUARTERLY FINANCIAL _3
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Total revenues | $ 12,174 | $ 9,451 | $ 12,394 | $ 10,293 | $ 9,912 | $ 9,427 | $ 11,119 | $ 9,683 | |||
Gross profit | 3,892 | 2,035 | 3,991 | 3,352 | 2,947 | 2,296 | 3,131 | 3,028 | $ 13,270 | $ 11,402 | $ 11,837 |
Operating income (loss) | 568 | (1,073) | 827 | 125 | (78) | (707) | 107 | 101 | 447 | (577) | (1,187) |
Net income (loss) | $ 490 | $ (1,125) | $ 779 | $ 70 | $ (146) | $ (757) | $ 156 | $ 75 | $ 214 | $ (672) | $ (1,293) |
Net income (loss) per share - basic and diluted (in dollars per share) | $ 0.03 | $ (0.07) | $ 0.05 | $ 0 | $ (0.01) | $ (0.05) | $ 0.01 | $ 0 | $ 0.01 | $ (0.04) | $ (0.08) |
Weighted average shares - diluted (in shares) | 16,150 | 16,138 | 16,106 | 16,089 | 16,082 | 16,082 | 16,068 | 16,093 | 16,123 | 16,055 | 15,949 |