Sharps Compliance (SMED) 10-Q 30 Jan 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Dec. 31, 2013	Jan. 27, 2014
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	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	15,239,517
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q2	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	31-Dec-13	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $)	Dec. 31, 2013		Jun. 30, 2013
In Thousands, unless otherwise specified
CURRENT ASSETS	'		'
Cash and cash equivalents	$15,280		$15,503
Restricted cash	111		111
Accounts receivable, net of allowance for doubtful accounts of $26 and $26, respectively	3,075		2,595
Inventory	1,367		1,632
Prepaid and other current assets	704		583
TOTAL CURRENT ASSETS	20,537		20,424
PROPERTY, PLANT AND EQUIPMENT, net	4,142		4,440
INTANGIBLE ASSETS, net of accumulated amortization of $303 and $275, respectively	748		668
TOTAL ASSETS	25,427		25,532
CURRENT LIABILITIES	'		'
Accounts payable	1,143		1,085
Accrued liabilities	1,490		1,345
Deferred revenue	1,389		1,351
TOTAL CURRENT LIABILITIES	4,022		3,781
LONG-TERM DEFERRED REVENUE	493		579
OTHER LONG-TERM LIABILITIES	7		102
TOTAL LIABILITIES	4,522		4,462
COMMITMENTS AND CONTINGENCIES	'		'
STOCKHOLDERS' EQUITY	'		'
Common stock, $0.01 par value per share; 20,000,000 shares authorized; 15,401,318 and 15,370,320 shares issued and outstanding, respectively	154		154
Treasury stock, at cost, 161,801 and 25,360 shares repurchased, respectively	-681		-74
Additional paid-in capital	23,411		23,211
Accumulated deficit	-1,979		-2,221
TOTAL STOCKHOLDERS' EQUITY	20,905	[1]	21,070
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$25,427		$25,532
[1]	unaudited

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $)	Dec. 31, 2013	Jun. 30, 2013
In Thousands, except Share data, unless otherwise specified
CURRENT ASSETS	'	'
Accounts receivable, allowance for doubtful accounts	$26	$26
INTANGIBLE ASSETS, accumulated amortization	$303	$275
STOCKHOLDERS' EQUITY	'	'
Common stock, par value (in dollars per share)	$0.01	$0.01
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares issued (in shares)	15,401,318	15,370,320
Common stock, shares outstanding (in shares)	15,401,318	15,370,320
Treasury stock, shares repurchased (in shares)	161,801	25,360

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013		Dec. 31, 2012
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) [Abstract]	'	'	'		'
REVENUES	$7,649	$5,717	$13,922		$10,870
Cost of revenues	4,960	4,017	8,908		7,618
GROSS PROFIT	2,689	1,700	5,014		3,252
Selling, general and administrative	2,452	2,020	4,531		4,100
Depreciation and amortization	117	111	233		224
OPERATING INCOME (LOSS)	120	-431	250		-1,072
OTHER INCOME	'	'	'		'
Interest income	5	8	10		16
TOTAL OTHER INCOME	5	8	10		16
INCOME (LOSS) BEFORE INCOME TAXES	125	-423	260		-1,056
INCOME TAX EXPENSE	'	'	'		'
Current	5	5	18		10
Deferred	0	0	0		1
TOTAL INCOME TAX EXPENSE	5	5	18		11
NET INCOME (LOSS)	$120	($428)	$242	[1]	($1,067)
NET INCOME (LOSS) PER COMMON SHARE	'	'	'		'
Basic (in dollars per share)	$0.01	($0.03)	$0.02		($0.07)
Diluted (in dollars per share)	$0.01	($0.03)	$0.02		($0.07)
WEIGHTED AVERAGE SHARES USED IN COMPUTING NET INCOME (LOSS) PER COMMON SHARE:	'	'	'		'
Basic (in shares)	15,295	15,232	15,319		15,221
Diluted (in shares)	15,438	15,232	15,402		15,221
[1]	unaudited

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (USD $)		Common Stock [Member]		Treasury Stock [Member]		Additional Paid-in Capital [Member]	Retained Earnings (Accumulated Deficit) [Member]	Total
In Thousands, except Share data
Balances at Jun. 30, 2012		$152		$0		$22,537	$491	$23,180
Balances (in shares) at Jun. 30, 2012		15,206,127		0		'	'	'
Exercise of stock options		1		0		161	0	162
Exercise of stock options (in shares)		100,445		0		'	'	'
Stock-based compensation		0		0		514	0	514
Issuance of restricted stock		1		0		-1	0	0
Issuance of restricted stock (in shares)		63,748		0		'	'	'
Stock repurchased		0		-74		0	0	-74
Stock repurchased (in shares)		0		-25,360		'	'	'
Net income (loss)		0		0		0	-2,712	-2,712
Balances at Jun. 30, 2013		154		-74		23,211	-2,221	21,070
Balances (in shares) at Jun. 30, 2013		15,370,320		-25,360		'	'	15,370,320
Exercise of stock options (in shares)		'		'		'	'	0
Stock-based compensation	[1]	0		0		200	0	200
Issuance of restricted stock	[1]	0		0		0	0	0
Issuance of restricted stock (in shares)	[1]	30,998		0		'	'	'
Stock repurchased	[1]	0		-607		0	0	-607
Stock repurchased (in shares)		0	[1]	-136,441	[1]	'	'	-136,441
Net income (loss)	[1]	0		0		0	242	242
Balances at Dec. 31, 2013	[1]	$154		($681)		$23,411	($1,979)	$20,905
Balances (in shares) at Dec. 31, 2013		15,401,318	[1]	-161,801	[1]	'	'	15,401,318
[1]	unaudited

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013		Dec. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES	'		'
Net income (loss)	$242	[1]	($1,067)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities	'		'
Depreciation and amortization	556		553
Stock-based compensation expense	200		323
Deferred tax expense	0		1
Changes in operating assets and liabilities:	'		'
Accounts receivable	-480		-474
Inventory	265		252
Prepaid and other current assets	-121		83
Accounts payable and accrued liabilities	108		95
Deferred revenue	-48		55
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	722		-179
CASH FLOWS FROM INVESTING ACTIVITIES	'		'
Purchase of property, plant and equipment	-230		-402
Additions to intangible assets	-108		-134
NET CASH USED IN INVESTING ACTIVITIES	-338		-536
CASH FLOWS FROM FINANCING ACTIVITIES	'		'
Proceeds from exercise of stock options	0		2
Shares repurchased	-607		0
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES	-607		2
NET DECREASE IN CASH AND CASH EQUIVALENTS	-223		-713
CASH AND CASH EQUIVALENTS, beginning of period	15,503		17,498
CASH AND CASH EQUIVALENTS, end of period	15,280		16,785
SUPPLEMENTAL CASH FLOW DISCLOSURES:	'		'
Income taxes paid	$8		$0
[1]	unaudited

ORGANIZATION_AND_BACKGROUND

ORGANIZATION AND BACKGROUND	6 Months Ended
	Dec. 31, 2013
ORGANIZATION AND BACKGROUND [Abstract]	'
ORGANIZATION AND BACKGROUND	'
	NOTE 1 - ORGANIZATION AND BACKGROUND
	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.) and Sharps Safety, Inc. (collectively, “Sharps” or the “Company”).  All significant intercompany accounts and transactions have been eliminated upon consolidation.

BASIS_OF_PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Dec. 31, 2013
BASIS OF PRESENTATION [Abstract]	'
BASIS OF PRESENTATION	'
	NOTE 2 - 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 accounting principles generally accepted in the United States of America for complete financial statements.  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 December 31, 2013, the results of its operations and cash flows for the three and six months ended December 31, 2013 and 2012 and stockholders’ equity for the six months ended December 31, 2013. The results of operations for the three and six months ended December 31, 2013 are not necessarily indicative of the results to be expected for the entire fiscal year ending June 30, 2014.  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, 2013.

SIGNIFICANT_ACCOUNTING_POLICIE

SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Dec. 31, 2013
SIGNIFICANT ACCOUNTING POLICIES [Abstract]	'
SIGNIFICANT ACCOUNTING POLICIES	'
	NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES
	Revenue Recognition:  The Company recognizes revenue from product sales when goods are shipped or delivered, and title and risk of loss pass to the customer except for those sales via multiple-deliverable arrangements. Provisions for certain rebates, product returns and discounts to customers are 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.
	The Company recognizes revenue in accordance with guidance on revenue recognition of multiple-deliverable arrangements. Under this guidance, certain products offered by the Company have revenue producing components that are recognized over multiple delivery points (Sharps Recovery System™ (formerly the Sharps Disposal by Mail Systems®) and various TakeAway Environmental Return Systems™ referred to as “Mailbacks” and Sharps® Pump and Asset Return Boxes, referred to as “Pump Returns”) and can consist of up to three separate elements, or units of measure, as follows: (1) the sale of the compliance and container system, (2) return transportation  and (3) treatment service.
	In accordance with the relative selling price methodology, an estimated selling price is determined for all deliverables that qualify for separate units of accounting.  The actual consideration received in a multiple-deliverable arrangement is then allocated to the units based on their relative sales price.  The selling price for the transportation revenue and the treatment revenue utilizes third party evidence. The Company estimates the selling price of the compliance and container system based on the product and services provided including compliance with local, state and Federal laws, adherence to stringent manufacturing and testing requirements, safety to the patient and the community as well as storage and containment capabilities.
	Revenue for the sale of the compliance and container is recognized upon delivery to the customer, at which time the customer takes title and assumes risk of ownership.  Transportation 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. Treatment revenue is recognized upon the destruction or conversion and proof of receipt and treatment having been performed on the container.  Since the transportation element and the treatment elements are undelivered services at the point of initial sale of the compliance and container, transportation and treatment revenue is deferred until the services are performed.  The current and long-term portions of deferred revenues are determined through regression analysis and historical trends.  Furthermore, 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 transportation and treatment elements are recognized at the point of sale.
	Income Taxes:  The liability method is used in accounting for deferred income taxes. Under this method, 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 and development of projected annual effective tax rates 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.
	Accounts Receivable:  Accounts receivable consist primarily of amounts due to the Company from our 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 expected uncollectibility of 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_STA

RECENTLY ISSUED ACCOUNTING STANDARDS	6 Months Ended
	Dec. 31, 2013
RECENTLY ISSUED ACCOUNTING STANDARDS [Abstract]	'
RECENTLY ISSUED ACCOUNTING STANDARDS	'
	NOTE 4 – RECENTLY ISSUED ACCOUNTING STANDARDS
	There are no recently issued accounting pronouncements that will have a significant impact on the Company’s consolidated financial statements as of December 31, 2013.

INCOME_TAXES

INCOME TAXES	6 Months Ended
	Dec. 31, 2013
INCOME TAXES [Abstract]	'
INCOME TAXES	'
	NOTE 5 - INCOME TAXES
	The establishment of valuation allowances and development of projected annual effective tax rates 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. Under generally accepted accounting principles, the valuation allowance has been recorded to reduce the Company’s net deferred tax asset 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 assets related to net operating loss carryforwards and other tax attributes.  The Company’s net deferred tax assets have been fully reserved by valuation allowance.
	The Company’s effective tax rate for the six months ended December 31, 2013 and 2012 was 6.9% and (1.0%), respectively, reflecting estimated state income taxes. The Company’s tax expense associated with taxable income during the six months ended December 31, 2013 was offset by the utilization of net operating loss carryforwards.  The Company’s tax benefit associated with taxable losses during the year ended June 30, 2013 was offset by a deferred tax valuation allowance of $0.9 million.

NOTES_PAYABLE_AND_LONGTERM_DEB

NOTES PAYABLE AND LONG-TERM DEBT	6 Months Ended
	Dec. 31, 2013
NOTES PAYABLE AND LONG-TERM DEBT [Abstract]	'
NOTES PAYABLE AND LONG-TERM DEBT	'
	NOTE 6 - NOTES PAYABLE AND LONG-TERM DEBT
	On January 28, 2014, the Company entered into a Credit Agreement with a commercial bank.  The Credit Agreement, which replaces the Prior Credit Agreement executed effective April 30, 2013 with another commercial bank, provides for a two-year, $3.0 million line of credit facility, the proceeds of which may be utilized for working capital, letters of credit (up to $500,000) and general corporate purposes.  Indebtedness under the Credit Agreement is secured by the Company’s accounts receivable and inventory with advances outstanding at any time limited to a Borrowing Base (as defined in the Credit Agreement) equal to 80% of eligible accounts receivable plus 50% of eligible inventory.  Borrowings bear interest at WSJ Prime, which we estimate to be approximately 3.25% as of January 30, 2014.  The Company will pay a fee of 0.25% per annum on the unused amount of the line of credit.   As of January 30, 2014, the Company had no outstanding borrowings, and is in the process of executing $335 thousand in letters of credit, which will leave $2.7 million of credit available.
	The Credit Agreement contains affirmative and negative covenants that, among other things, require the Company to maintain a minimum level of tangible net worth of $10.5 million and minimum liquidity of $5.0 million.  The Company is in compliance with all the financial covenants as of January 30, 2014.  The Credit Agreement, which expires on January 28, 2016, 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 Prior Credit Agreement, which was in effect as of December 31, 2013, provided for a cash-collateralized $200,000 line of credit facility with a maturity date of July 15, 2015.  No amounts related to the Prior Credit Agreement were outstanding as of December 31, 2013 other than letters of credit of approximately $110 thousand.

STOCKBASED_COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Dec. 31, 2013
STOCK-BASED COMPENSATION [Abstract]	'
STOCK-BASED COMPENSATION	'
	NOTE 7 – STOCK-BASED COMPENSATION
	Stock-based compensation cost is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the employee’s requisite service period (generally the vesting period of the equity grant).  Reductions in taxes payable resulting from tax deductions that exceed the recognized tax benefit associated with compensation expense (excess tax benefits) are classified as financing cash flows and as an increase to additional paid in capital.   During the three and six months ended December 31, 2013 and 2012, stock-based compensation amounts are as follows (in thousands):
		Three-Months Ended				Six-Months Ended
		December 31,				December 31,
		2013		2012		2013		2012
		(Unaudited)				(Unaudited)
	Stock-based compensation expense included in:
	Cost of revenue	$	4	$	7	$	10	$	8
	General and administrative expense		115		143		190		315
	Total	$	119	$	150	$	200	$	323
	For the three and six months ended December 31, 2013, excess tax benefits have been eliminated by the valuation allowance on the deferred tax assets.

EARNINGS_PER_SHARE

EARNINGS PER SHARE	6 Months Ended
	Dec. 31, 2013
EARNINGS PER SHARE [Abstract]	'
EARNINGS PER SHARE	'
	NOTE 8 - EARNINGS PER SHARE
	Earnings per share are measured at two levels: basic per share and diluted per share. Basic per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted 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. Vested restricted shares are included in basic common shares outstanding, and unvested restricted shares are included in the diluted common shares outstanding, if the effect is dilutive.
	The following information is necessary to calculate earnings per share for the periods presented (in thousands, except per-share data):
		Three-Months Ended					Six-Months Ended
		December 31,					December 31,
		2013		2012			2013		2012
		(Unaudited)					(Unaudited)
	Net income (loss), as reported	$	120	$	(428	)	$	242	$	(1,067	)
	Weighted average common shares outstanding		15,295		15,232			15,319		15,221
	Effect of dilutive stock options		143		-			83		-
	Weighted average diluted common shares outstanding		15,438		15,232			15,402		15,221
	Net income (loss) per common share
	Basic	$	0.01	$	(0.03	)	$	0.02	$	(0.07	)
	Diluted	$	0.01	$	(0.03	)	$	0.02	$	(0.07	)
	Employee stock options excluded from computation of dilutive income (loss) per share amounts because their effect would be anti-dilutive		445		851			653		831

EQUITY_TRANSACTIONS

EQUITY TRANSACTIONS	6 Months Ended
	Dec. 31, 2013
EQUITY TRANSACTIONS [Abstract]	'
EQUITY TRANSACTIONS	'
	NOTE 9 - EQUITY TRANSACTIONS
	During the three and six months ended December 31, 2013 and 2012, stock options to purchase shares of the Company’s common stock were exercised as follows:
		Three-Months Ended				Six-Months Ended
		December 31,				December 31,
		2013		2012		2013		2012
		(Unaudited)				(Unaudited)
	Options exercised		-		-		-		3,500
	Proceeds (in thousands)	$	-	$	-	$	-	$	2
	Average exercise price per share	$	-	$	-	$	-	$	0.68
	As of December 31, 2013, there was $624 thousand of stock option and restricted stock compensation expense related to non-vested awards which is expected to be recognized over a weighted average period of 2.91 years.
	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.During the three and six months ended December 31, 2013 and 2012, shares were repurchased as follows:
		Three-Months Ended				Six-Months Ended
		December 31,				December 31,
		2013		2012		2013		2012
		(Unaudited)				(Unaudited)
	Shares repurchased		117,441		-		136,441		-
	Cash paid for shares repurchased (in thousands)	$	555	$	-	$	607	$	-
	Average price paid per share	$	4.73	$	-	$	4.45	$	-
	Total shares repurchased under the program are 161,801 shares at a cost of $0.7 million.  As of December 31, 2013, approximately $2.3 million remained of the Company’s $3.0 million repurchase program.  Sharps purchased all shares with cash resources.

INVENTORY

INVENTORY	6 Months Ended
	Dec. 31, 2013
INVENTORY [Abstract]	'
INVENTORY	'
	NOTE 10 – INVENTORY
	The components of inventory are as follows (in thousands):
		December 31,		June 30,
		2013		2013
		(Unaudited)
	Raw materials	$	776	$	887
	Finished goods		591		745
	Total	$	1,367	$	1,632

FAIR_VALUE_OF_FINANCIAL_INSTRU

FAIR VALUE OF FINANCIAL INSTRUMENTS	6 Months Ended
	Dec. 31, 2013
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]	'
FAIR VALUE OF FINANCIAL INSTRUMENTS	'
	NOTE 11 – FAIR VALUE OF FINANCIAL INSTRUMENTS
	The Company considers the fair value of all financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, not to be materially different from their carrying values at December 31, 2013 due to their short-term nature.

SIGNIFICANT_ACCOUNTING_POLICIE1

SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Dec. 31, 2013
SIGNIFICANT ACCOUNTING POLICIES [Abstract]	'
Revenue Recognition	'
	Revenue Recognition:  The Company recognizes revenue from product sales when goods are shipped or delivered, and title and risk of loss pass to the customer except for those sales via multiple-deliverable arrangements. Provisions for certain rebates, product returns and discounts to customers are 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.
	The Company recognizes revenue in accordance with guidance on revenue recognition of multiple-deliverable arrangements. Under this guidance, certain products offered by the Company have revenue producing components that are recognized over multiple delivery points (Sharps Recovery System™ (formerly the Sharps Disposal by Mail Systems®) and various TakeAway Environmental Return Systems™ referred to as “Mailbacks” and Sharps® Pump and Asset Return Boxes, referred to as “Pump Returns”) and can consist of up to three separate elements, or units of measure, as follows: (1) the sale of the compliance and container system, (2) return transportation  and (3) treatment service.
	In accordance with the relative selling price methodology, an estimated selling price is determined for all deliverables that qualify for separate units of accounting.  The actual consideration received in a multiple-deliverable arrangement is then allocated to the units based on their relative sales price.  The selling price for the transportation revenue and the treatment revenue utilizes third party evidence. The Company estimates the selling price of the compliance and container system based on the product and services provided including compliance with local, state and Federal laws, adherence to stringent manufacturing and testing requirements, safety to the patient and the community as well as storage and containment capabilities.
	Revenue for the sale of the compliance and container is recognized upon delivery to the customer, at which time the customer takes title and assumes risk of ownership.  Transportation 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. Treatment revenue is recognized upon the destruction or conversion and proof of receipt and treatment having been performed on the container.  Since the transportation element and the treatment elements are undelivered services at the point of initial sale of the compliance and container, transportation and treatment revenue is deferred until the services are performed.  The current and long-term portions of deferred revenues are determined through regression analysis and historical trends.  Furthermore, 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 transportation and treatment elements are recognized at the point of sale.
Income Taxes	'
	Income Taxes:  The liability method is used in accounting for deferred income taxes. Under this method, 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 and development of projected annual effective tax rates 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.
Accounts Receivable	'
	Accounts Receivable:  Accounts receivable consist primarily of amounts due to the Company from our 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 expected uncollectibility of 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.

STOCKBASED_COMPENSATION_Tables

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Dec. 31, 2013
STOCK-BASED COMPENSATION [Abstract]	'
Allocated cost of share based compensation	'
	During the three and six months ended December 31, 2013 and 2012, stock-based compensation amounts are as follows (in thousands):
		Three-Months Ended				Six-Months Ended
		December 31,				December 31,
		2013		2012		2013		2012
		(Unaudited)				(Unaudited)
	Stock-based compensation expense included in:
	Cost of revenue	$	4	$	7	$	10	$	8
	General and administrative expense		115		143		190		315
	Total	$	119	$	150	$	200	$	323

EARNINGS_PER_SHARE_Tables

EARNINGS PER SHARE (Tables)	6 Months Ended
	Dec. 31, 2013
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 data):
		Three-Months Ended					Six-Months Ended
		December 31,					December 31,
		2013		2012			2013		2012
		(Unaudited)					(Unaudited)
	Net income (loss), as reported	$	120	$	(428	)	$	242	$	(1,067	)
	Weighted average common shares outstanding		15,295		15,232			15,319		15,221
	Effect of dilutive stock options		143		-			83		-
	Weighted average diluted common shares outstanding		15,438		15,232			15,402		15,221
	Net income (loss) per common share
	Basic	$	0.01	$	(0.03	)	$	0.02	$	(0.07	)
	Diluted	$	0.01	$	(0.03	)	$	0.02	$	(0.07	)
	Employee stock options excluded from computation of dilutive income (loss) per share amounts because their effect would be anti-dilutive		445		851			653		831

EQUITY_TRANSACTIONS_Tables

EQUITY TRANSACTIONS (Tables)	6 Months Ended
	Dec. 31, 2013
EQUITY TRANSACTIONS [Abstract]	'
Stock options exercised to purchase common stock	'
	During the three and six months ended December 31, 2013 and 2012, stock options to purchase shares of the Company’s common stock were exercised as follows:
		Three-Months Ended				Six-Months Ended
		December 31,				December 31,
		2013		2012		2013		2012
		(Unaudited)				(Unaudited)
	Options exercised		-		-		-		3,500
	Proceeds (in thousands)	$	-	$	-	$	-	$	2
	Average exercise price per share	$	-	$	-	$	-	$	0.68
Schedule of share repurchases	'
	During the three and six months ended December 31, 2013 and 2012, shares were repurchased as follows:
		Three-Months Ended				Six-Months Ended
		December 31,				December 31,
		2013		2012		2013		2012
		(Unaudited)				(Unaudited)
	Shares repurchased		117,441		-		136,441		-
	Cash paid for shares repurchased (in thousands)	$	555	$	-	$	607	$	-
	Average price paid per share	$	4.73	$	-	$	4.45	$	-

INVENTORY_Tables

INVENTORY (Tables)	6 Months Ended
	Dec. 31, 2013
INVENTORY [Abstract]	'
Components of inventory	'
	The components of inventory are as follows (in thousands):
		December 31,		June 30,
		2013		2013
		(Unaudited)
	Raw materials	$	776	$	887
	Finished goods		591		745
	Total	$	1,367	$	1,632

INCOME_TAXES_Details

INCOME TAXES (Details) (USD $)	6 Months Ended		12 Months Ended
In Millions, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Jun. 30, 2013
Effective income tax rate reconciliation [Abstract]	'	'	'
Effective income tax rate (in hundredths)	6.90%	-1.00%	'
Deferred tax valuation allowance on net deferred tax assets	'	'	$0.90

NOTES_PAYABLE_AND_LONGTERM_DEB1

NOTES PAYABLE AND LONG-TERM DEBT (Details) (USD $)	Dec. 31, 2013	Jan. 30, 2014	Jan. 30, 2014	Dec. 31, 2013
	Letters of Credit [Member]	Letters of Credit [Member]	Credit Agreement [Member]	Prior Agreement [Member]
		Subsequent Event [Member]	Subsequent Event [Member]
Line of Credit Facility [Line Items]	'	'	'	'
Maximum borrowing capacity	$200,000	$500,000	$3,000,000	'
Period of line of credit	'	'	'2 years	'
Amount outstanding	110,000	335,000	0	0
Remaining borrowing capacity	'	'	2,700,000	'
Percentage of eligible accounts receivable considered for borrowing base (in hundredths)	'	'	80.00%	'
Percentage of eligible inventory considered for borrowing base (in hundredths)	'	'	50.00%	'
Minimum amount of tangible net worth to be maintained under financial covenants	'	'	10,500,000	'
Minimum amount of liquidity to be maintained under financial covenants	'	'	$5,000,000	'
Maturity date	'	'	28-Jan-16	'
Unused capacity, commitment fee percentage (in hundredths)	'	'	0.25%	'
Interest rate (in hundredths)	'	'	3.25%	'

STOCKBASED_COMPENSATION_Detail

STOCK-BASED COMPENSATION (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Stock-based compensation expense	$119	$150	$200	$323
Cost of Revenue [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Stock-based compensation expense	4	7	10	8
General and Administrative Expense [Member]	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Stock-based compensation expense	$115	$143	$190	$315

EARNINGS_PER_SHARE_Details

EARNINGS PER SHARE (Details) (USD $)	3 Months Ended		6 Months Ended			12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013		Dec. 31, 2012	Jun. 30, 2013
EARNINGS PER SHARE [Abstract]	'	'	'		'	'
Net income (loss), as reported	$120	($428)	$242	[1]	($1,067)	($2,712)
Weighted average common shares outstanding (in shares)	15,295	15,232	15,319		15,221	'
Effect of dilutive stock options (in shares)	143	0	83		0	'
Weighted average diluted common shares outstanding (in shares)	15,438	15,232	15,402		15,221	'
Net income (loss) per common share [Abstract]	'	'	'		'	'
Basic (in dollars per share)	$0.01	($0.03)	$0.02		($0.07)	'
Diluted (in dollars per share)	$0.01	($0.03)	$0.02		($0.07)	'
Employee stock options excluded from computation of dilutive income (loss) per share amounts because their effect would be anti-dilutive (in shares)	445	851	653		831	'
[1]	unaudited

EQUITY_TRANSACTIONS_Details

EQUITY TRANSACTIONS (Details) (USD $)	3 Months Ended		6 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Jun. 30, 2013
Stock options exercised [Abstract]	'	'	'	'	'
Options exercised (in shares)	0	0	0	3,500	'
Proceeds	$0	$0	$0	$2,000	'
Average exercise price per share (in dollars per share)	$0	$0	$0	$0.68	'
Compensation expense related to non-vested awards	624,000	'	624,000	'	'
Weighted average period	'	'	'2 years 10 months 28 days	'	'
Stock repurchase program, authorized amount	'	'	3,000,000	'	'
Stock repurchase program, period	'	'	'2 years	'	'
Shares repurchased [Abstract]	'	'	'	'	'
Shares repurchased (in shares)	117,441	0	136,441	0	'
Cash paid for shares repurchased	555,000	0	607,000	0	'
Average price paid per share (in dollars per share)	$4.73	$0	$4.45	$0	'
Total shares repurchased under the program (in shares)	161,801	'	161,801	'	25,360
Total shares repurchased under the program, at cost	681,000	'	681,000	'	74,000
Amount remaining under repurchase program	'	'	$2,300,000	'	'

INVENTORY_Details

INVENTORY (Details) (USD $)	Dec. 31, 2013	Jun. 30, 2013
In Thousands, unless otherwise specified
Components of inventory [Abstract]	'	'
Raw materials	$776	$887
Finished goods	591	745
Total	$1,367	$1,632