Sharps Compliance (SMED) 10-Q 12 May 22 2022 Q3 Quarterly report Financial data

COVER

COVER - shares	9 Months Ended
	Mar. 31, 2022	May 10, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
Entity File Number	001-34269
Entity Registrant Name	SHARPS COMPLIANCE CORP
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	74-2657168
Entity Address, Address Line One	9220 Kirby Drive
Entity Address, Address Line Two	Suite 500
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77054
City Area Code	713
Local Phone Number	432-0300
Title of 12(b) Security	Common Shares, $0.01 Par Value
Trading Symbol	SMED
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		19,430,063
Entity Central Index Key	0000898770
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2022	Jun. 30, 2021
CURRENT ASSETS
Cash	$ 26,744	$ 27,767
Accounts receivable, net	14,790	9,738
Inventory	6,979	6,114
Contract asset	16	20
Prepaid and other current assets	3,446	1,459
TOTAL CURRENT ASSETS	51,975	45,098
PROPERTY, PLANT AND EQUIPMENT, net	11,786	10,843
OPERATING LEASE RIGHT OF USE ASSET	12,424	8,353
FINANCING LEASE RIGHT OF USE ASSET, net	932	907
INVENTORY, net of current portion	987	989
OTHER ASSETS	325	110
GOODWILL	10,216	6,735
INTANGIBLE ASSETS, net	4,541	2,239
DEFERRED TAX ASSET, net	150	157
TOTAL ASSETS	93,336	75,431
CURRENT LIABILITIES
Accounts payable	3,090	2,922
Accrued liabilities	4,104	3,940
Operating lease liability	2,872	2,368
Financing lease liability	189	160
Current maturities of long-term debt	307	735
Contract liability	4,285	7,028
TOTAL CURRENT LIABILITIES	14,847	17,153
CONTRACT LIABILITY, net of current portion	523	1,461
OPERATING LEASE LIABILITY, net of current portion	9,701	6,118
FINANCING LEASE LIABILITY, net of current portion	756	741
OTHER LIABILITIES	0	45
LONG-TERM DEBT, net of current portion	3,095	3,329
TOTAL LIABILITIES	28,922	28,847
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Common stock, $0.01 par value per share; 40,000,000 shares authorized; 19,725,678 and 17,454,859 shares issued, respectively and 19,430,063 and 17,159,244 shares outstanding, respectively	199	176
Treasury stock, at cost, 295,615 shares repurchased	(1,554)	(1,554)
Additional paid-in capital	53,186	34,333
Retained earnings	12,583	13,629
TOTAL STOCKHOLDERS' EQUITY	64,414	46,584
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 93,336	$ 75,431

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2022	Jun. 30, 2021
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	40,000,000
Common stock, shares issued (in shares)	19,725,678	17,454,859
Common stock, shares outstanding (in shares)	19,430,063	17,159,244
Treasury stock, shares repurchased (in shares)	295,615	295,615

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
REVENUES	$ 17,579	$ 27,528	$ 50,372	$ 57,690
Cost of revenues	12,601	14,129	37,266	35,031
GROSS PROFIT	4,978	13,399	13,106	22,659
Selling, general and administrative	4,713	4,181	13,301	11,725
Depreciation and amortization	272	216	726	625
OPERATING INCOME (LOSS)	(7)	9,002	(921)	10,309
OTHER INCOME (EXPENSE)
Interest income	16	0	30	0
Interest expense	(53)	(55)	(167)	(134)
Income associated with derivative instrument	44	26	78	41
TOTAL OTHER INCOME (EXPENSE)	7	(29)	(59)	(93)
INCOME (LOSS) BEFORE INCOME TAXES	0	8,973	(980)	10,216
INCOME TAX EXPENSE
Current	34	1,083	59	1,147
Deferred	253	1,040	7	1,284
TOTAL INCOME TAX EXPENSE	287	2,123	66	2,431
NET INCOME (LOSS)	$ (287)	$ 6,850	$ (1,046)	$ 7,785
NET INCOME (LOSS) PER COMMON SHARE
Basic (in dollars per share)	$ (0.01)	$ 0.41	$ (0.06)	$ 0.47
Diluted (in dollars per share)	$ (0.01)	$ 0.40	$ (0.06)	$ 0.46
WEIGHTED AVERAGE SHARES USED IN COMPUTING NET INCOME (LOSS) PER COMMON SHARE:
Basic (in shares)	19,412	16,556	18,842	16,481
Diluted (in shares)	19,412	17,187	18,842	16,978

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-in Capital	Retained Earnings
Balance at beginning (in shares) at Jun. 30, 2020		16,667,572	295,615
Balances at beginning at Jun. 30, 2020	$ 29,578	$ 168	$ (1,554)	$ 30,203	$ 761
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)	141,281	141,281
Exercise of stock options	$ 625	$ 2		623
Stock-based compensation	832			832
Issuance of restricted stock (in shares)		73,180
Issuance of restricted stock	0	$ 1		(1)
Net income (loss)	7,785				7,785
Balance at end (in shares) at Mar. 31, 2021		16,882,033	295,615
Balances at end at Mar. 31, 2021	38,820	$ 171	$ (1,554)	31,657	8,546
Balance at beginning (in shares) at Dec. 31, 2020		16,799,702	295,615
Balances at beginning at Dec. 31, 2020	$ 31,126	$ 170	$ (1,554)	30,814	1,696
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)	72,750	72,750
Exercise of stock options	$ 314	$ 1		313
Stock-based compensation	530			530
Issuance of restricted stock (in shares)		9,581
Net income (loss)	6,850				6,850
Balance at end (in shares) at Mar. 31, 2021		16,882,033	295,615
Balances at end at Mar. 31, 2021	38,820	$ 171	$ (1,554)	31,657	8,546
Balance at beginning (in shares) at Jun. 30, 2021		17,454,859	295,615
Balances at beginning at Jun. 30, 2021	$ 46,584	$ 176	$ (1,554)	34,333	13,629
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)	0
Exercise of stock options	$ 0
Issuance of common stock pursuant to secondary offering, net (in shares)		2,070,000
Issuance of common stock pursuant to secondary offering, net	16,771	$ 21		16,750
Issuance of stock, acquisition (in shares)		164,821
Issuance of stock, acquisition	1,088	$ 2		1,086
Stock-based compensation	1,017			1,017
Issuance of restricted stock (in shares)		35,998
Net income (loss)	(1,046)				(1,046)
Balance at end (in shares) at Mar. 31, 2022		19,725,678	295,615
Balances at end at Mar. 31, 2022	64,414	$ 199	$ (1,554)	53,186	12,583
Balance at beginning (in shares) at Dec. 31, 2021		19,542,858	295,615
Balances at beginning at Dec. 31, 2021	$ 63,225	$ 197	$ (1,554)	51,712	12,870
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)	0
Exercise of stock options	$ 0
Issuance of stock, acquisition (in shares)		164,821
Issuance of stock, acquisition	1,088	$ 2		1,086
Stock-based compensation	388			388
Issuance of restricted stock (in shares)		17,999
Net income (loss)	(287)				(287)
Balance at end (in shares) at Mar. 31, 2022		19,725,678	295,615
Balances at end at Mar. 31, 2022	$ 64,414	$ 199	$ (1,554)	$ 53,186	$ 12,583

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ (1,046)	$ 7,785
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	1,820	1,445
Bad debt expense	79	141
Inventory write-off	19	76
Loss on disposal of property, plant and equipment	0	1
Stock-based compensation expense	1,017	832
Income associated with derivative instrument	(67)	(41)
Deferred tax expense	7	1,284
Changes in operating assets and liabilities, net of business combinations:
Accounts receivable	(4,914)	(11,767)
Inventory	(882)	1,260
Prepaid and other assets	(2,127)	885
Accounts payable and accrued liabilities	7	846
Contract asset and contract liability	(3,677)	4,721
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	(9,764)	7,468
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment	(1,576)	(2,566)
Payments for business acquisitions, net of cash acquired	(5,533)	0
Additions to intangible assets	(111)	(79)
NET CASH USED IN INVESTING ACTIVITIES	(7,220)	(2,645)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of stock options	0	625
Proceeds from issuance of common stock, net	16,771	0
Proceeds from long-term debt	0	961
Repayments of long-term debt	(516)	(545)
Payments on financing lease liabilities	(148)	(64)
Payments of debt issuance costs	(146)	0
NET CASH PROVIDED BY FINANCING ACTIVITIES	15,961	977
NET INCREASE (DECREASE) IN CASH	(1,023)	5,800
CASH, beginning of period	27,767	5,416
CASH, end of period	26,744	11,216
SUPPLEMENTAL CASH FLOW DISCLOSURES:
Income taxes paid, net of refunds	187	(210)
Interest paid on long-term debt	171	120
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Issuance of common stock for acquisition	1,088	0
Property, plant and equipment financed through accounts payable	215	(295)
Purchase of previously leased property, plant and equipment financed with note payable	$ 0	$ 873

ORGANIZATION AND BACKGROUND

ORGANIZATION AND BACKGROUND	9 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND BACKGROUND	ORGANIZATION AND BACKGROUND Organization : The accompanying unaudited condensed 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, Citiwaste, LLC, Sharps Properties, LLC, Affordable Medical Waste LLC and Midwest Medical Waste, Inc. (collectively, “Sharps” or the “Company”). All significant intercompany accounts and transactions have been eliminated upon consolidation. Business : Sharps is a full-service national provider of comprehensive waste management services including medical, pharmaceutical and hazardous for small and medium quantity generators. The Company’s solutions include Sharps Recovery System™ (formerly Sharps Disposal by Mail System ® ), TakeAway Recovery 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 Recovery System . The Company also offers its route-based pick-up services in a thirty-seven (37) state region of the South, Southeast, Southwest, Midwest and Northeast portions of the United States.

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information and with instructions to Form 10-Q and, accordingly, do not include all information and footnotes required under generally accepted accounting principles in the United States of America ("GAAP") for complete financial statements. Additionally, the preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts. In the opinion of management, these interim condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the consolidated financial position of the Company as of March 31, 2022, the results of its operations for the three and nine months ended March 31, 2022 and 2021, cash flows for the nine months ended March 31, 2022 and 2021, and stockholders’ equity for the three and nine months ended March 31, 2022 and 2021. The results of operations for the three and nine months ended March 31, 2022 are not necessarily indicative of the results to be expected for the entire fiscal year ending June 30, 2022. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended June 30, 2021. Effects of COVID-19 A novel strain of coronavirus ("COVID-19") was first identified in December 2019, and subsequently declared a global pandemic by the World Health Organization on March 11, 2020. As a result of the outbreak, many companies have experienced disruptions in their operations and in servicing customers. The Company has implemented some and may take additional precautionary measures intended to help ensure the well-being of its employees, facilitate continued uninterrupted servicing of customers and minimize business disruptions. The full extent of the future impacts of COVID-19 on the Company's operations is uncertain. A prolonged outbreak could have a material adverse impact on the financial results and business operations of the Company. To date, the Company has not identified any material adverse impact of COVID-19 on its financial position and results of operations.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition: The components of revenues by solution which reflect a disaggregation of revenue by contract type are as follows (in thousands): Three-Months Ended March 31, 2022 % Total 2021 % Total REVENUES BY SOLUTION: Mailbacks $ 9,476 53.9 % $ 20,893 75.9 % Route-based pickup services 4,044 23.0 % 3,597 13.1 % Unused medications 2,098 12.0 % 2,078 7.5 % Third party treatment services 180 1.0 % 76 0.3 % Other (1) 1,781 10.1 % 884 3.2 % Total revenues $ 17,579 100.0 % $ 27,528 100.0 % Nine-Months Ended March 31, 2022 % Total 2021 % Total REVENUES BY SOLUTION: Mailbacks 28,294 56.2 % $ 37,507 64.9 % Route-based pickup services 10,794 21.4 % 10,244 17.8 % Unused medications 6,592 13.1 % 6,152 10.7 % Third party treatment services 265 0.5 % 390 0.7 % Other (1) 4,427 8.8 % 3,397 5.9 % Total revenues $ 50,372 100.0 % $ 57,690 100.0 % (1) The Company’s other products include IV poles, accessories, containers, asset return boxes and other miscellaneous items with single performance obligations. Vendor Managed Inventory ("VMI") - 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. During the three and nine months ended March 31, 2022, the Company recorded billings from inventory builds that are held in VMI under these service agreements of $1.1 million and $2.9 million, respectively. During the three and nine months ended March 31, 2021, the Company recorded billings from inventory builds that are held in VMI under these service agreements of $0.3 million and $3.8 million, respectively. As of March 31, 2022 and June 30, 2021, $4.4 million and $3.7 million , respectively, of solutions sold through that date were held in VMI pending fulfillment or shipment to patients of pharmaceutical manufacturers who offer these solutions to patients in an ongoing patient support program. The contract asset is related to VMI service agreements within the maibacks 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. The amount recognized during the nine months ended March 31, 2022 and 2021 related to contract liabilities recorded as of June 30, 2021 and 2020 were $6.4 million and $2.4 million, respectively. 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 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. No such allowance was deemed necessary based on the Company's assessment of the recoverability of its deferred tax assets.

RECENTLY ISSUED ACCOUNTING STAN

RECENTLY ISSUED ACCOUNTING STANDARDS	9 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
RECENTLY ISSUED ACCOUNTING STANDARDS	RECENTLY ISSUED ACCOUNTING STANDARDSIn June 2016, guidance for credit losses of financial instruments was issued, which requires entities to measure credit losses for financial assets measured at amortized cost and certain other instruments based on expected losses rather than incurred losses. The provisions of the new guidance are effective for annual periods beginning after December 15, 2022 (effective July 1, 2023 for the Company), including interim periods within the reporting period, and early application is permitted. The Company is in the initial stages of evaluating the impact of the new guidance on its consolidated financial statements and related disclosures as well as evaluating the available transition methods. The Company will continue to evaluate the standard as well as additional changes, modifications or interpretations which may impact the Company.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Mar. 31, 2022
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXESThe Company’s effective tax rate for the nine months ended March 31, 2022 and 2021 was (6.7)% and 23.8%, respectively. During the nine months ended March 31, 2022, the estimated annual effective tax rate was 4.4%, and the primary components of the rate were federal tax at the statutory rate of 21%, the tax effect of non-deductible expenses and the impact of state income taxes. Tax expense for the current year to date period also includes $0.1 million of discrete items such as return to provision adjustments and the tax effects of stock-based compensation and as such have been excluded from the Company’s estimated annual effective tax rate. During the nine months ended March 31, 2021, the effective tax rate was based on the statutory federal tax rate of 21% as well as an approximated state income tax rate net of the federal benefit.

LEASES

LEASES	9 Months Ended
	Mar. 31, 2022
Leases [Abstract]
LEASES	LEASES The Company has operating leases for real estate, field equipment, office equipment and vehicles and financing leases for vehicles and office equipment. Operating leases are included in Operating Lease Right of Use ("ROU") Asset and Operating Lease Liability on our Condensed Consolidated Balance Sheets. Financing leases are included in Financing Lease ROU Asset and Financing Lease Liability on the Condensed Consolidated Balance Sheets. During the three and nine months ended March 31, 2022 and 2021, lease cost amounts, which reflect the fixed rent expense associated with operating and financing leases, are as follows (in thousands): Three-Months Ended March 31, Nine-Months Ended March 31, 2022 2021 2022 2021 Lease cost (1) - fixed rent expense: Operating lease cost included in: Cost of revenues $ 739 $ 613 $ 2,063 $ 1,805 Selling, general and administrative 106 107 328 333 Financing lease cost included in: Cost of revenues (amortization expense) 48 19 137 54 Interest expense 8 4 23 12 Total $ 901 $ 743 $ 2,551 $ 2,204 (1) Short-term lease cost and variable lease cost were not significant during the period. During the nine months ended March 31, 2022 and 2021, the Company had the following cash and non-cash activities associated with leases (in thousands): Nine-Months Ended March 31, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow for operating leases $ 2,372 $ 2,080 Non-cash changes to the Operating ROU Asset and Operating Lease Liability Additions and modifications to ROU asset obtained from new operating lease liabilities $ 6,263 $ 2,382 Additions to ROU asset obtained from new financing lease liabilities $ 179 $ 314 As of March 31, 2022, the weighted average remaining lease term for all operating and financing leases is 5.40 years and 4.83 years, respectively. The weighted average discount rate associated with operating and financing leases as of March 31, 2022 is 3% for each. The future payments due under operating leases as of March 31, 2022 is as follows (in thousands): Future payments due in the twelve months ended March 31, Operating lease Financing lease 2023 $ 3,239 $ 216 2024 2,970 215 2025 2,653 215 2026 1,733 202 2027 849 159 Thereafter 2,233 28 Total undiscounted lease payments 13,677 1,035 Less effects of discounting (1,104) (90) Lease liability recognized $ 12,573 $ 945

NOTES PAYABLE AND LONG-TERM DEB

NOTES PAYABLE AND LONG-TERM DEBT	9 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
NOTES PAYABLE AND LONG-TERM DEBT	NOTES PAYABLE AND LONG-TERM DEBT On March 18, 2022, certain wholly owned subsidiaries of the Company amended and restated its existing Credit and Loan Agreements with its existing commercial bank ("Credit Agreement"). The Credit Agreement expands the facility available to the Company, extends the maturity date of the Credit Agreement from December 28, 2023 to March 18, 2027 and increases the maximum Cash Flow Leverage Ratio from 3.00 to 3.50. The Credit Agreement provides for a $36.0 million committed credit facility. The proceeds of the credit facility may be utilized as follows: (i) $6.0 million for working capital, letters of credit (up to $1.0 million) and general corporate purposes that can be increased to $10.0 million upon the Company’s request, and (ii) $30.0 million for acquisitions. The Company paid a facility fee of $0.1 million upon execution of the Credit Agreement. 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 end of a three-year advancing period. Borrowings bear interest at the greater of (a) zero percent or (b) the SOFR AVG 30 Day in Advance ("SOFR30A") plus a credit spread adjustment of 0.10% and a margin of 2.5%. The interest rate as of March 31, 2022 was approximately 2.85%. The Company pays a fee of 0.25% per annum on the unused amount of the committed credit facility. The Credit Agreement also aggregated certain debt agreements previously executed by the Company with its existing commercial agreement, changing the interest rate but retaining the original maturity and monthly payment requirements as shown below including: • Equipment loan which is secured by equipment at the Texas Treatment Facility. • Real estate loan which is secured by the Company’s real estate investment at the Texas Treatment Facility. • Real estate loan which is secured by property in Pennsylvania which had previously been leased by the Company for its operations. Each of these agreements bears interest at rates consistent with the Credit Agreement. At March 31, 2022 and June 30, 2021, long-term debt consisted of the following (in thousands): March 31, 2022 June 30, 2021 Acquisition loan, monthly payments of $43; matured March 2022 $ — $ 431 Equipment loan, monthly payments of $17; maturing August 2024, net of debt issuance costs of $31 682 830 Real estate loans, monthly payments of $9; maturing August 2024 and January 2026 2,720 2,803 Total long-term debt 3,402 4,064 Less: current portion 307 735 Long-term debt, net of current portion $ 3,095 $ 3,329 The Company has availability under the Credit Agreement of $35.3 million ($5.3 million for the working capital and $30.0 million for acquisitions) as of March 31, 2022 with the option to extend the availability up to $40.0 million. The Company has $0.7 million in letters of credit outstanding as of March 31, 2022. 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 3.5 to 1.0 and a minimum debt service coverage ratio of not less than 1.15 to 1.00. The Credit Agreement also contains customary events of default which, if incurred, may terminate the agreement and require immediate repayment of all indebtedness to the lenders. The leverage ratio covenant may limit the amount available under the agreement. The Company was in compliance with all the financial covenants under the Credit Agreement as of March 31, 2022. Payments due on long-term debt subsequent to March 31, 2022 are as follows (in thousands): Twelve Months Ending March 31, 2023 $ 307 2024 $ 320 2025 $ 2,111 2026 $ 695 $ 3,433

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
	Mar. 31, 2022
Share-based Payment Arrangement [Abstract]
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). Contingently issued awards with a requisite service period that precedes the grant date are measured and recognized at the start of the requisite service period and remeasured each reporting period until the grant date. Total stock-based compensation expense for the three and nine months ended March 31, 2022 and 2021 is as follows (in thousands): Three-Months Ended March 31, Nine-Months Ended March 31, 2022 2021 2022 2021 Stock-based compensation expense included in: Cost of revenues $ 19 $ — $ 33 $ — Selling, general and administrative 369 530 984 832 Total $ 388 $ 530 $ 1,017 $ 832

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Mar. 31, 2022
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 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 considered participating securities as the shares have full voting rights and are entitled to participate in dividends declared on common shares, if any, and undistributed earnings. The two-class method presentation of the basic and diluted EPS is not presented as the amount of earnings allocated to the participating securities was not material for the periods presented. Instead, the unvested awards are included in the diluted EPS. The following information is necessary to calculate earnings per share for the periods presented (in thousands, except per-share amounts): Three-Months Ended March 31, Nine-Months Ended March 31, 2022 2021 2022 2021 Net income (loss) as reported $ (287) $ 6,850 $ (1,046) $ 7,785 Weighted average common shares outstanding 19,412 16,556 18,842 16,481 Effect of dilutive stock options — 631 — 497 Weighted average diluted common shares outstanding 19,412 17,187 18,842 16,978 Net income (loss) per common share Basic $ (0.01) $ 0.41 $ (0.06) $ 0.47 Diluted $ (0.01) $ 0.40 $ (0.06) $ 0.46 Employee stock options excluded from computation of dilutive income per share amounts because their effect would be anti-dilutive 924 — 924 —

EQUITY TRANSACTIONS

EQUITY TRANSACTIONS	9 Months Ended
	Mar. 31, 2022
Stockholders' Equity Note [Abstract]
EQUITY TRANSACTIONS	EQUITY TRANSACTIONS During the three and nine months ended March 31, 2022 and 2021, respectively, stock options to purchase shares of the Company's common stock were exercised as follows: Three-Months Ended March 31, Nine-Months Ended March 31, 2022 2021 2022 2021 Options exercised — 72,750 — 141,281 Proceeds (in thousands) $ — $ 314 $ — $ 625 Average exercise price per share $ — $ 4.32 $ — $ 4.42 As of March 31, 2022, there was $1.1 million and $0.8 million of stock compensation expense related to non-vested options and non-vested restricted stock awards, respectively, which is expected to be recognized over weighted average periods of 2.49 years for each . On August 30, 2021, the Company closed its previously announced underwritten secondary offering of a total of 2,070,000 shares of its common stock at a public offering price of $8.65 per share, including the exercise in full by the underwriter of its option to purchase an additional 270,000 shares to cover over-allotments in connection with the offering. After the underwriting discount and offering expenses payable by the Company of $1.1 million, the Company received net proceeds of approximately $16.8 million.

INVENTORY

INVENTORY	9 Months Ended
	Mar. 31, 2022
Inventory Disclosure [Abstract]
INVENTORY	INVENTORY The components of inventory are as follows (in thousands): March 31, 2022 June 30, 2021 Raw materials $ 2,530 $ 2,040 Finished goods 5,436 5,063 Total inventory 7,966 7,103 Less: current portion 6,979 6,114 Inventory, net of current portion $ 987 $ 989 The current portion of inventory includes amounts which the Company expects to sell in the next twelve month period based on historical sales.

ACQUISITIONS

ACQUISITIONS	9 Months Ended
	Mar. 31, 2022
Business Combination and Asset Acquisition [Abstract]
ACQUISITIONS	ACQUISITIONS Affordable Medical Waste LLC On October 22, 2021, the Company acquired Affordable Medical Waste LLC, a route-based provider of medical waste solutions with about 500 route-based customer locations in the Midwest, primarily in Indi ana, for $2.2 million, net of cash acquired of $0.1 million, paid in cash from funds on hand. This tuck-in acquisition enhances the Company's presence in the Midwest and improves route density in the service area. The following amounts represent the fair value of the assets acquired and liabilities assumed (in thousands): Accounts receivable $ 65 Fixed assets 145 Intangibles 771 Goodwill 1,261 Accounts payable and accrued liabilities (61) Total purchase price, net of cash acquired $ 2,181 Intangibles is primarily comprised of amounts allocated to customer relationships in the amount of $0.8 million. The fair value of the fixed assets were determined using the market approach (level 2 inputs) whereas the fair value of the customer relationships was determined using the income approach (level 3 inputs). Midwest Medical Waste, Inc. On February 4, 2022, the Company acquired Midwest Medical Waste, Inc., a route-based provider of medical waste management solutions with about 600 locations in Kansas for a total purchase price of $4.4 million , net of cash acquired of $0.3 million. The purchase price consisted of 25% in Company stock (164,821 shares of the Company's stock valued at $1.1 million (the "Common Stock Consideration")) and 75% in cash, paid from funds on hand. The issuance of the Common Stock Consideration was not registered under the Securities Act of 1933, as amended, and was issued pursuant to an exemption from the registration requirements thereunder. The following amounts represent the fair value of the assets acquired and liabilities assumed (in thousands): Accounts receivable $ 152 Other current assets 75 Fixed assets 140 Intangibles 1,940 Goodwill 2,220 Accounts payable and accrued liabilities (87) Total purchase price, net of cash acquired $ 4,440 Intangibles is primarily comprised of amounts allocated to customer relationships in the amount of $1.9 million. The fair value of the fixed assets were determined using the market approach (level 2 inputs) whereas the fair value of the customer relationships was determined using the income approach (level 3 inputs). Acquisitions in General During the three and nine months ended March 31, 2022, the Company incurred $0.2 million and $0.4 million, respectively, of acquisition related expenses for investment banking, legal and accounting fees which are included within selling, general and administrative expenses on our condensed consolidated statements of operations. The results of operations of the acquired business have been included in the condensed consolidated statements of operations from the date of acquisition. Pro forma results of operations for Affordable Medical Waste LLC and Midwest Medical Waste, Inc., are not presented because the pro forma effects were not material to the Company's consolidated results of operations, either individually or in the aggregate. The goodwill recorded for the acquisition will be deductible for income taxes.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Mar. 31, 2022
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTSOn April 4, 2022, the Company announced that it appointed W. Patrick Mulloy as President and Chief Executive Officer. Mr. Mulloy, a director of the Company since February 2021, succeeded David P. Tusa, who resigned from the role effective April 1, 2022 to pursue other endeavors. In connection with his appointment, Mr. Mulloy was granted: a Sign-On Bonus of $100,000, a Restricted Stock Award of 20,000 shares of the Company’s common stock and an option to purchase 20,000 shares of the Company’s common stock. The Restricted Stock Award and option vest over a period of four years. Under a Separation and Release Agreement executed on April 1, 2022, Mr. Tusa received: (i) a cash payment of $600,000 in exchange for cancellation of his employment agreement dated July 14, 2003, (ii) acceleration of the vesting of all unvested stock options (202,400 shares with value of approximately $0.4 million) held by Mr. Tusa and (iii) continuation certain benefits for up to 18 months including medical and dental insurance, automobile lease and automobile insurance with value of less than $0.1 million.

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
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 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. No such allowance was deemed necessary based on the Company's assessment of the recoverability of its deferred tax assets.
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. The Company has a history of minimal uncollectible accounts.
Recently Issued Accounting Standards	In June 2016, guidance for credit losses of financial instruments was issued, which requires entities to measure credit losses for financial assets measured at amortized cost and certain other instruments based on expected losses rather than incurred losses. The provisions of the new guidance are effective for annual periods beginning after December 15, 2022 (effective July 1, 2023 for the Company), including interim periods within the reporting period, and early application is permitted. The Company is in the initial stages of evaluating the impact of the new guidance on its consolidated financial statements and related disclosures as well as evaluating the available transition methods. The Company will continue to evaluate the standard as well as additional changes, modifications or interpretations which may impact the Company.

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Mar. 31, 2022
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 (in thousands): Three-Months Ended March 31, 2022 % Total 2021 % Total REVENUES BY SOLUTION: Mailbacks $ 9,476 53.9 % $ 20,893 75.9 % Route-based pickup services 4,044 23.0 % 3,597 13.1 % Unused medications 2,098 12.0 % 2,078 7.5 % Third party treatment services 180 1.0 % 76 0.3 % Other (1) 1,781 10.1 % 884 3.2 % Total revenues $ 17,579 100.0 % $ 27,528 100.0 % Nine-Months Ended March 31, 2022 % Total 2021 % Total REVENUES BY SOLUTION: Mailbacks 28,294 56.2 % $ 37,507 64.9 % Route-based pickup services 10,794 21.4 % 10,244 17.8 % Unused medications 6,592 13.1 % 6,152 10.7 % Third party treatment services 265 0.5 % 390 0.7 % Other (1) 4,427 8.8 % 3,397 5.9 % Total revenues $ 50,372 100.0 % $ 57,690 100.0 % (1) The Company’s other products include IV poles, accessories, containers, asset return boxes and other miscellaneous items with single performance obligations.

LEASES (Tables)

LEASES (Tables)	9 Months Ended
	Mar. 31, 2022
Leases [Abstract]
Summary of lease components and other information	During the three and nine months ended March 31, 2022 and 2021, lease cost amounts, which reflect the fixed rent expense associated with operating and financing leases, are as follows (in thousands): Three-Months Ended March 31, Nine-Months Ended March 31, 2022 2021 2022 2021 Lease cost (1) - fixed rent expense: Operating lease cost included in: Cost of revenues $ 739 $ 613 $ 2,063 $ 1,805 Selling, general and administrative 106 107 328 333 Financing lease cost included in: Cost of revenues (amortization expense) 48 19 137 54 Interest expense 8 4 23 12 Total $ 901 $ 743 $ 2,551 $ 2,204 (1) Short-term lease cost and variable lease cost were not significant during the period. During the nine months ended March 31, 2022 and 2021, the Company had the following cash and non-cash activities associated with leases (in thousands): Nine-Months Ended March 31, 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow for operating leases $ 2,372 $ 2,080 Non-cash changes to the Operating ROU Asset and Operating Lease Liability Additions and modifications to ROU asset obtained from new operating lease liabilities $ 6,263 $ 2,382 Additions to ROU asset obtained from new financing lease liabilities $ 179 $ 314
Schedule of maturities of operating lease liabilities	The future payments due under operating leases as of March 31, 2022 is as follows (in thousands): Future payments due in the twelve months ended March 31, Operating lease Financing lease 2023 $ 3,239 $ 216 2024 2,970 215 2025 2,653 215 2026 1,733 202 2027 849 159 Thereafter 2,233 28 Total undiscounted lease payments 13,677 1,035 Less effects of discounting (1,104) (90) Lease liability recognized $ 12,573 $ 945

NOTES PAYABLE AND LONG-TERM D_2

NOTES PAYABLE AND LONG-TERM DEBT (Tables)	9 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Schedule of long-term debt	At March 31, 2022 and June 30, 2021, long-term debt consisted of the following (in thousands): March 31, 2022 June 30, 2021 Acquisition loan, monthly payments of $43; matured March 2022 $ — $ 431 Equipment loan, monthly payments of $17; maturing August 2024, net of debt issuance costs of $31 682 830 Real estate loans, monthly payments of $9; maturing August 2024 and January 2026 2,720 2,803 Total long-term debt 3,402 4,064 Less: current portion 307 735 Long-term debt, net of current portion $ 3,095 $ 3,329
Schedule of payments due on long-term debt	Payments due on long-term debt subsequent to March 31, 2022 are as follows (in thousands): Twelve Months Ending March 31, 2023 $ 307 2024 $ 320 2025 $ 2,111 2026 $ 695 $ 3,433

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Mar. 31, 2022
Share-based Payment Arrangement [Abstract]
Schedule of stock-based compensation	Total stock-based compensation expense for the three and nine months ended March 31, 2022 and 2021 is as follows (in thousands): Three-Months Ended March 31, Nine-Months Ended March 31, 2022 2021 2022 2021 Stock-based compensation expense included in: Cost of revenues $ 19 $ — $ 33 $ — Selling, general and administrative 369 530 984 832 Total $ 388 $ 530 $ 1,017 $ 832

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Schedule of earnings per share	The following information is necessary to calculate earnings per share for the periods presented (in thousands, except per-share amounts): Three-Months Ended March 31, Nine-Months Ended March 31, 2022 2021 2022 2021 Net income (loss) as reported $ (287) $ 6,850 $ (1,046) $ 7,785 Weighted average common shares outstanding 19,412 16,556 18,842 16,481 Effect of dilutive stock options — 631 — 497 Weighted average diluted common shares outstanding 19,412 17,187 18,842 16,978 Net income (loss) per common share Basic $ (0.01) $ 0.41 $ (0.06) $ 0.47 Diluted $ (0.01) $ 0.40 $ (0.06) $ 0.46 Employee stock options excluded from computation of dilutive income per share amounts because their effect would be anti-dilutive 924 — 924 —

EQUITY TRANSACTIONS (Tables)

EQUITY TRANSACTIONS (Tables)	9 Months Ended
	Mar. 31, 2022
Stockholders' Equity Note [Abstract]
Schedule of stock option activity	During the three and nine months ended March 31, 2022 and 2021, respectively, stock options to purchase shares of the Company's common stock were exercised as follows: Three-Months Ended March 31, Nine-Months Ended March 31, 2022 2021 2022 2021 Options exercised — 72,750 — 141,281 Proceeds (in thousands) $ — $ 314 $ — $ 625 Average exercise price per share $ — $ 4.32 $ — $ 4.42

INVENTORY (Tables)

INVENTORY (Tables)	9 Months Ended
	Mar. 31, 2022
Inventory Disclosure [Abstract]
Schedule of inventory	The components of inventory are as follows (in thousands): March 31, 2022 June 30, 2021 Raw materials $ 2,530 $ 2,040 Finished goods 5,436 5,063 Total inventory 7,966 7,103 Less: current portion 6,979 6,114 Inventory, net of current portion $ 987 $ 989

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	9 Months Ended
	Mar. 31, 2022
Business Combination and Asset Acquisition [Abstract]
Schedule of assets acquired and liabilities assumed	The following amounts represent the fair value of the assets acquired and liabilities assumed (in thousands): Accounts receivable $ 65 Fixed assets 145 Intangibles 771 Goodwill 1,261 Accounts payable and accrued liabilities (61) Total purchase price, net of cash acquired $ 2,181 The following amounts represent the fair value of the assets acquired and liabilities assumed (in thousands): Accounts receivable $ 152 Other current assets 75 Fixed assets 140 Intangibles 1,940 Goodwill 2,220 Accounts payable and accrued liabilities (87) Total purchase price, net of cash acquired $ 4,440

ORGANIZATION AND BACKGROUND (De

ORGANIZATION AND BACKGROUND (Details)	9 Months Ended
	Mar. 31, 2022stateRegion
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of route-based pick-up services in state region	37

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES - Summary of Revenue by Solution (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Disaggregation of Revenue [Line Items]
Total revenues	$ 17,579	$ 27,528	$ 50,372	$ 57,690
Revenue benchmark | Product concentration risk
Disaggregation of Revenue [Line Items]
Revenue percentage	100.00%	100.00%	100.00%	100.00%
Mailbacks
Disaggregation of Revenue [Line Items]
Total revenues	$ 9,476	$ 20,893	$ 28,294	$ 37,507
Mailbacks | Revenue benchmark | Product concentration risk
Disaggregation of Revenue [Line Items]
Revenue percentage	53.90%	75.90%	56.20%	64.90%
Route-based pickup services
Disaggregation of Revenue [Line Items]
Total revenues	$ 4,044	$ 3,597	$ 10,794	$ 10,244
Route-based pickup services | Revenue benchmark | Product concentration risk
Disaggregation of Revenue [Line Items]
Revenue percentage	23.00%	13.10%	21.40%	17.80%
Unused medications
Disaggregation of Revenue [Line Items]
Total revenues	$ 2,098	$ 2,078	$ 6,592	$ 6,152
Unused medications | Revenue benchmark | Product concentration risk
Disaggregation of Revenue [Line Items]
Revenue percentage	12.00%	7.50%	13.10%	10.70%
Third party treatment services
Disaggregation of Revenue [Line Items]
Total revenues	$ 180	$ 76	$ 265	$ 390
Third party treatment services | Revenue benchmark | Product concentration risk
Disaggregation of Revenue [Line Items]
Revenue percentage	1.00%	0.30%	0.50%	0.70%
Other
Disaggregation of Revenue [Line Items]
Total revenues	$ 1,781	$ 884	$ 4,427	$ 3,397
Other | Revenue benchmark | Product concentration risk
Disaggregation of Revenue [Line Items]
Revenue percentage	10.10%	3.20%	8.80%	5.90%

SIGNIFICANT ACCOUNTING POLICI_5

SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021	Jun. 30, 2021
Accounting Policies [Abstract]
Billings recorded from inventory builds	$ 1.1	$ 0.3	$ 2.9	$ 3.8
Solutions sold that were held in vendor managed inventory	$ 4.4		4.4		$ 3.7
Contract with customer, liability, revenue recognized			$ 6.4	$ 2.4

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended		12 Months Ended
	Mar. 31, 2022	Mar. 31, 2022	Mar. 31, 2021	Jun. 30, 2022
Income Tax Contingency [Line Items]
Effective income tax rate		(6.70%)	23.80%
Discrete tax expense	$ 0.1
Forecast
Income Tax Contingency [Line Items]
Effective income tax rate				4.40%

LEASES - Components of Net Leas

LEASES - Components of Net Lease (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Lessee, Lease, Description [Line Items]
Cost of revenues (amortization expense)	$ 48	$ 19	$ 137	$ 54
Interest expense	8	4	23	12
Total	$ 901	743	2,551	2,204
Operating cash outflow for operating leases			2,372	2,080
Additions and modifications to ROU asset obtained from new operating lease liabilities			6,263	2,382
Additions to ROU asset obtained from new financing lease liabilities			$ 179	314
Weighted average remaining lease term, operating leases	5 years 4 months 24 days		5 years 4 months 24 days
Weighted average remaining lease term, financing leases	4 years 9 months 29 days		4 years 9 months 29 days
Weighted average discount rate, operating leases	3.00%		3.00%
Weighted average discount rate, financing leases	3.00%		3.00%
Cost of revenues
Lessee, Lease, Description [Line Items]
Operating lease cost	$ 739	613	$ 2,063	1,805
Selling, general and administrative
Lessee, Lease, Description [Line Items]
Operating lease cost	$ 106	$ 107	$ 328	$ 333

LEASES - Maturities of Leases (

LEASES - Maturities of Leases (Details) $ in Thousands	Mar. 31, 2022USD ($)
Operating lease
2023	$ 3,239
2024	2,970
2025	2,653
2026	1,733
2027	849
Thereafter	2,233
Total undiscounted lease payments	13,677
Less effects of discounting	(1,104)
Lease liability recognized	12,573
Financing lease
2023	216
2024	215
2025	215
2026	202
2027	159
Thereafter	28
Total undiscounted lease payments	1,035
Less effects of discounting	(90)
Lease liability recognized	$ 945

NOTES PAYABLE AND LONG-TERM D_3

NOTES PAYABLE AND LONG-TERM DEBT - Narrative (Details)	Mar. 18, 2022USD ($)	Mar. 17, 2022	Mar. 31, 2022USD ($)	Mar. 31, 2021USD ($)
Line of Credit Facility [Line Items]
Facility fee			$ 146,000	$ 0
Letter of Credit
Line of Credit Facility [Line Items]
Amount outstanding			$ 700,000
Credit Agreement
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 36,000,000
Facility fee	$ 100,000
Percentage of eligible accounts receivable considered for borrowing base	80.00%
Percentage of eligible inventory considered for borrowing base	50.00%
Borrowing base, monetary benchmark	$ 3,000,000
Advancing term	3 years
Basis spread of variable rate	0.00%
Interest rate			2.85%
Unused capacity, commitment fee percentage			0.25%
Remaining borrowing capacity			$ 35,300,000
Maximum borrowing capacity, option			40,000,000
Credit Agreement | Working Capital
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 6,000,000
Accordion feature, increase limit	10,000,000
Remaining borrowing capacity			5,300,000
Credit Agreement | Business Acquisitions
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 30,000,000
Percentage of portion allocated to acquisition purchase price	75.00%
Remaining borrowing capacity			$ 30,000,000
Credit Agreement | Maximum
Line of Credit Facility [Line Items]
Debt cash flow leverage ratio	3.50	3	3.5
Credit Agreement | Minimum
Line of Credit Facility [Line Items]
Debt service coverage ratio			1.15
Credit Agreement | Term Loan
Line of Credit Facility [Line Items]
Maturity period	5 years
Credit Agreement | Letter of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 1,000,000
Credit Agreement | Secured Overnight Financing Rate (SOFR)
Line of Credit Facility [Line Items]
Basis spread of variable rate	2.50%
Credit spread adjustment on basis spread on variable rate	0.10%

NOTES PAYABLE AND LONG-TERM D_4

NOTES PAYABLE AND LONG-TERM DEBT - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2022	Jun. 30, 2021
Debt Instrument [Line Items]
Total long-term debt	$ 3,402	$ 4,064
Less: current portion	307	735
Long-term debt, net of current portion	3,095	3,329
Acquisition loan | Term Loan
Debt Instrument [Line Items]
Monthly payments	43
Total long-term debt	0	431
Equipment loan | Term Loan
Debt Instrument [Line Items]
Monthly payments	17
Debt issuance costs, net	31
Total long-term debt	682	830
Real estate loan | Term Loan
Debt Instrument [Line Items]
Monthly payments	9
Total long-term debt	$ 2,720	$ 2,803

NOTES PAYABLE AND LONG-TERM D_5

NOTES PAYABLE AND LONG-TERM DEBT - Schedule of Payments Due on Long-term Debt (Details) - Term Loan $ in Thousands	Mar. 31, 2022USD ($)
Long-term Debt, Fiscal Year Maturity [Abstract]
2023	$ 307
2024	320
2025	2,111
2026	695
Total long-term debt	$ 3,433

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	$ 388	$ 530	$ 1,017	$ 832
Cost of revenues
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	19	0	33	0
Selling, general and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation	$ 369	$ 530	$ 984	$ 832

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Earnings Per Share [Abstract]
Net income (loss) as reported	$ (287)	$ 6,850	$ (1,046)	$ 7,785
Net income (loss) as reported	$ (287)	$ 6,850	$ (1,046)	$ 7,785
Weighted average common shares outstanding (in shares)	19,412	16,556	18,842	16,481
Effect of dilutive stock options (in shares)	0	631	0	497
Weighted average diluted common shares outstanding (in shares)	19,412	17,187	18,842	16,978
Net income (loss) per common share
Basic (in dollars per share)	$ (0.01)	$ 0.41	$ (0.06)	$ 0.47
Diluted (in dollars per share)	$ (0.01)	$ 0.40	$ (0.06)	$ 0.46
Employee stock options excluded from computation of dilutive income per share amounts because their effect would be anti-dilutive (in shares)	924	0	924	0

EQUITY TRANSACTIONS - Exercised

EQUITY TRANSACTIONS - Exercised (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Stockholders' Equity Note [Abstract]
Options exercised (in shares)	0	72,750	0	141,281
Proceeds	$ 0	$ 314	$ 0	$ 625
Average exercise price per share (in dollars per share)	$ 0	$ 4.32	$ 0	$ 4.42

EQUITY TRANSACTIONS - Narrative

EQUITY TRANSACTIONS - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	Aug. 30, 2021	Mar. 31, 2022	Mar. 31, 2021
Class of Stock [Line Items]
Issuance of common stock (in shares)	2,070,000
Shares price (in dollars per share)	$ 8.65
Underwriting discount and offering expenses	$ 1,100
Proceeds from issuance of common stock, net	$ 16,800	$ 16,771	$ 0
Over-Allotment Option
Class of Stock [Line Items]
Issuance of common stock (in shares)	270,000
Non-vested options
Class of Stock [Line Items]
Compensation expense related to non-vested awards		$ 1,100
Weighted average period		2 years 5 months 26 days
Non-vested restricted stock awards
Class of Stock [Line Items]
Compensation expense related to non-vested awards		$ 800
Weighted average period		2 years 5 months 26 days

INVENTORY (Details)

INVENTORY (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Jun. 30, 2021
Components of inventory [Abstract]
Raw materials	$ 2,530	$ 2,040
Finished goods	5,436	5,063
Total inventory	7,966	7,103
Less: current portion	6,979	6,114
Inventory, net of current portion	$ 987	$ 989

ACQUISITIONS - Narrative (Detai

ACQUISITIONS - Narrative (Details) $ in Thousands	Feb. 04, 2022USD ($)locationshares	Oct. 22, 2021USD ($)location	Mar. 31, 2022USD ($)	Mar. 31, 2022USD ($)
Business Acquisition [Line Items]
Acquisition related expenses			$ 200	$ 400
Affordable Medical Waste LLC
Business Acquisition [Line Items]
Number of locations | location		500
Business combination, consideration transferred		$ 2,200
Cash acquired from acquisition		100
Intangibles		771
Affordable Medical Waste LLC | Customer relationships
Business Acquisition [Line Items]
Intangibles		$ 800
Midwest Medical Waste, Inc.
Business Acquisition [Line Items]
Number of locations | location	600
Business combination, consideration transferred	$ 4,400
Cash acquired from acquisition	300
Intangibles	$ 1,940
Business combination, consideration transferred, equity	25.00%
Business acquisition, equity interest issued or issuable, number of shares (in shares) | shares	164,821
Business combination, consideration transferred, equity interests issued and issuable	$ 1,100
Business combination, consideration transferred, cash	75.00%
Midwest Medical Waste, Inc. | Customer relationships
Business Acquisition [Line Items]
Intangibles	$ 1,900

ACQUISITIONS - Assets Acquired

ACQUISITIONS - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Feb. 04, 2022	Oct. 22, 2021	Jun. 30, 2021
Business Acquisition [Line Items]
Goodwill	$ 10,216			$ 6,735
Affordable Medical Waste LLC
Business Acquisition [Line Items]
Accounts receivable			$ 65
Fixed assets			145
Intangibles			771
Goodwill			1,261
Accounts payable and accrued liabilities			(61)
Total purchase price, net of cash acquired			$ 2,181
Midwest Medical Waste, Inc.
Business Acquisition [Line Items]
Accounts receivable		$ 152
Other current assets		75
Fixed assets		140
Intangibles		1,940
Goodwill		2,220
Accounts payable and accrued liabilities		(87)
Total purchase price, net of cash acquired		$ 4,440

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - Subsequent Event - USD ($) $ in Thousands	Apr. 04, 2022	Apr. 01, 2022
Current Chief Executive Officer
Subsequent Event [Line Items]
Sign-on bonus	$ 100
Options granted (in shares)	20,000
Current Chief Executive Officer | Restricted stock
Subsequent Event [Line Items]
Equity instruments other than options granted (in shares)	20,000
Award vesting period	4 years
Current Chief Executive Officer | Options
Subsequent Event [Line Items]
Award vesting period	4 years
Former Chief Executive Officer
Subsequent Event [Line Items]
Payments for cancellation of employee agreement		$ 600
Share-based compensation arrangement by share-based payment award, accelerated vesting, number (in shares)		202,400
Share-based compensation arrangement by share-based payment award, accelerated vesting, value		$ 400
Postemployment benefit liability, benefit coverage period		18 months
Postemployment benefits liability (less then)		$ 100