Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Mar. 31, 2014 | 5-May-14 | |
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 | ' | 15,268,141 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 | |
In Thousands, unless otherwise specified | |||
CURRENT ASSETS | ' | ' | |
Cash and cash equivalents | $14,430 | $15,503 | |
Restricted cash | 111 | 111 | |
Accounts receivable, net of allowance for doubtful accounts of $23 and $26, respectively | 2,976 | 2,595 | |
Inventory | 1,376 | 1,632 | |
Prepaid and other current assets | 904 | 583 | |
TOTAL CURRENT ASSETS | 19,797 | 20,424 | |
PROPERTY, PLANT AND EQUIPMENT, net | 3,954 | 4,440 | |
INTANGIBLE ASSETS, net of accumulated amortization of $316 and $275, respectively | 729 | 668 | |
TOTAL ASSETS | 24,480 | 25,532 | |
CURRENT LIABILITIES | ' | ' | |
Accounts payable | 1,486 | 1,085 | |
Accrued liabilities | 1,196 | 1,345 | |
Deferred revenue | 1,174 | 1,351 | |
TOTAL CURRENT LIABILITIES | 3,856 | 3,781 | |
LONG-TERM DEFERRED REVENUE | 435 | 579 | |
OTHER LONG-TERM LIABILITIES | 50 | 102 | |
TOTAL LIABILITIES | 4,341 | 4,462 | |
COMMITMENTS AND CONTINGENCIES | ' | ' | |
STOCKHOLDERS' EQUITY | ' | ' | |
Common stock, $0.01 par value per share; 20,000,000 shares authorized;15,429,942 and 15,370,320 shares issued and outstanding, respectively | 155 | 154 | |
Treasury stock, at cost, 161,801 and 25,360 shares repurchased, respectively | -681 | -74 | |
Additional paid-in capital | 23,579 | 23,211 | |
Accumulated deficit | -2,914 | -2,221 | |
TOTAL STOCKHOLDERS' EQUITY | 20,139 | [1] | 21,070 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $24,480 | $25,532 | |
[1] | unaudited |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
CURRENT ASSETS | ' | ' |
Accounts receivable, allowance for doubtful accounts | $23 | $26 |
INTANGIBLE ASSETS, accumulated amortization | $316 | $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) | 15,429,942 | 15,370,320 |
Common stock, shares outstanding (in shares) | 15,429,942 | 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 | 9 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) [Abstract] | ' | ' | ' | ' | |
REVENUES | $5,553 | $5,410 | $19,474 | $16,280 | |
Cost of revenues | 4,144 | 3,894 | 13,052 | 11,512 | |
GROSS PROFIT | 1,409 | 1,516 | 6,422 | 4,768 | |
Selling, general and administrative | 2,225 | 2,351 | 6,756 | 6,451 | |
Depreciation and amortization | 119 | 107 | 351 | 331 | |
OPERATING LOSS | -935 | -942 | -685 | -2,014 | |
OTHER INCOME | ' | ' | ' | ' | |
Interest income | 6 | 6 | 16 | 22 | |
TOTAL OTHER INCOME | 6 | 6 | 16 | 22 | |
LOSS BEFORE INCOME TAXES | -929 | -936 | -669 | -1,992 | |
INCOME TAX EXPENSE | ' | ' | ' | ' | |
Current | 6 | 5 | 24 | 15 | |
Deferred | 0 | 14 | 0 | 15 | |
TOTAL INCOME TAX EXPENSE | 6 | 19 | 24 | 30 | |
NET LOSS | ($935) | ($955) | ($693) | [1] | ($2,022) |
NET LOSS PER COMMON SHARE | ' | ' | ' | ' | |
Basic (in dollars per share) | ($0.06) | ($0.06) | ($0.05) | ($0.13) | |
Diluted (in dollars per share) | ($0.06) | ($0.06) | ($0.05) | ($0.13) | |
WEIGHTED AVERAGE SHARES USED IN COMPUTING NET LOSS PER COMMON SHARE: | ' | ' | ' | ' | |
Basic (in shares) | 15,248 | 15,246 | 15,296 | 15,229 | |
Diluted (in shares) | 15,248 | 15,246 | 15,296 | 15,229 | |
[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 | ' | ' | ' | |||
Shares repurchased | 0 | -74 | 0 | 0 | -74 | |||
Shares repurchased (in shares) | 0 | -25,360 | ' | ' | ' | |||
Net 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 | [1] | 1 | 0 | 46 | 0 | 47 | ||
Exercise of stock options (in shares) | 13,125 | [1] | 0 | [1] | ' | ' | 13,125 | |
Stock-based compensation | [1] | 0 | 0 | 322 | 0 | 322 | ||
Issuance of restricted stock | [1] | 0 | 0 | 0 | 0 | 0 | ||
Issuance of restricted stock (in shares) | [1] | 46,497 | 0 | ' | ' | ' | ||
Shares repurchased | [1] | 0 | -607 | 0 | 0 | -607 | ||
Shares repurchased (in shares) | 0 | [1] | -136,441 | [1] | ' | ' | -136,441 | |
Net loss | [1] | 0 | 0 | 0 | -693 | -693 | ||
Balances at Mar. 31, 2014 | [1] | $155 | ($681) | $23,579 | ($2,914) | $20,139 | ||
Balances (in shares) at Mar. 31, 2014 | 15,429,942 | [1] | -161,801 | [1] | ' | ' | 15,429,942 | |
[1] | unaudited |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' | |
Net loss | ($693) | [1] | ($2,022) |
Adjustments to reconcile net loss to net cash in operating activities | ' | ' | |
Depreciation and amortization | 835 | 827 | |
Stock-based compensation expense | 322 | 414 | |
Deferred tax expense | 0 | 15 | |
Changes in operating assets and liabilities: | ' | ' | |
Accounts receivable | -381 | -617 | |
Inventory | 256 | 315 | |
Prepaid and other current assets | -321 | -104 | |
Accounts payable and accrued liabilities | 200 | 626 | |
Deferred revenue | -321 | -135 | |
NET CASH USED IN OPERATING ACTIVITIES | -103 | -681 | |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' | |
Purchase of property, plant and equipment | -308 | -548 | |
Additions to intangible assets | -102 | -158 | |
NET CASH USED IN INVESTING ACTIVITIES | -410 | -706 | |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' | |
Proceeds from exercise of stock options | 47 | 42 | |
Shares repurchased | -607 | -74 | |
NET CASH USED IN FINANCING ACTIVITIES | -560 | -32 | |
NET DECREASE IN CASH AND CASH EQUIVALENTS | -1,073 | -1,419 | |
CASH AND CASH EQUIVALENTS, beginning of period | 15,503 | 17,498 | |
CASH AND CASH EQUIVALENTS, end of period | 14,430 | 16,079 | |
SUPPLEMENTAL CASH FLOW DISCLOSURES: | ' | ' | |
Income taxes paid | $11 | $0 | |
[1] | unaudited |
ORGANIZATION_AND_BACKGROUND
ORGANIZATION AND BACKGROUND | 9 Months Ended |
Mar. 31, 2014 | |
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 | 9 Months Ended |
Mar. 31, 2014 | |
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 March 31, 2014, the results of its operations and cash flows for the three and nine months ended March 31, 2014 and 2013 and stockholders' equity for the nine months ended March 31, 2014. The results of operations for the three and nine months ended March 31, 2014 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 | 9 Months Ended |
Mar. 31, 2014 | |
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 | 9 Months Ended |
Mar. 31, 2014 | |
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 March 31, 2014. |
INCOME_TAXES
INCOME TAXES | 9 Months Ended |
Mar. 31, 2014 | |
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 nine months ended March 31, 2014 and 2013 was (3.6%) and (1.5%), respectively, reflecting estimated state income taxes. The Company's tax benefit associated with taxable losses during the nine months ended March 31, 2014 and the year ended June 30, 2013, was offset by a deferred tax valuation allowance. |
NOTES_PAYABLE_AND_LONGTERM_DEB
NOTES PAYABLE AND LONG-TERM DEBT | 9 Months Ended |
Mar. 31, 2014 | |
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 ("Credit Agreement"). The Credit Agreement, which replaces the prior credit agreement executed effective April 30, 2013 with another commercial bank ("Prior Credit Agreement"), 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 March 31, 2014. The Company will pay a fee of 0.25% per annum on the unused amount of the line of credit. As of March 31, 2014, the Company had no outstanding borrowings, other than $335 thousand in letters of credit, which leaves $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 March 31, 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 effective through January 28, 2014, 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 March 31, 2014 other than letters of credit of approximately $110 thousand, which are in the process of being released. | |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
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 nine months ended March 31, 2014 and 2013, stock-based compensation amounts are as follows (in thousands): | |||||||||||||||||
Three-Months Ended | Nine-Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||
Stock-based compensation expense included in: | |||||||||||||||||
Cost of revenue | $ | 4 | $ | 6 | $ | 14 | $ | 14 | |||||||||
General and administrative expense | 118 | 85 | 308 | 400 | |||||||||||||
Total | $ | 122 | $ | 91 | $ | 322 | $ | 414 | |||||||||
For the three and nine months ended March 31, 2014, excess tax benefits have been eliminated by the valuation allowance on the deferred tax assets. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 9 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
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 loss by the weighted average number of common shares outstanding during the period. Diluted per share is computed by dividing net loss by the weighted average number of common shares after considering the additional dilution related to common stock options and restricted stock. In computing diluted earnings per share, the outstanding common stock options are considered dilutive using the treasury stock method. 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 | Nine-Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||
Net loss, as reported | $ | (935 | ) | $ | (955 | ) | $ | (693 | ) | $ | (2,022 | ) | |||||
Weighted average common shares outstanding | 15,248 | 15,246 | 15,296 | 15,229 | |||||||||||||
Effect of dilutive stock options | - | - | - | - | |||||||||||||
Weighted average diluted common shares outstanding | 15,248 | 15,246 | 15,296 | 15,229 | |||||||||||||
Net loss per common share | |||||||||||||||||
Basic | $ | (0.06 | ) | $ | (0.06 | ) | $ | (0.05 | ) | $ | (0.13 | ) | |||||
Diluted | $ | (0.06 | ) | $ | (0.06 | ) | $ | (0.05 | ) | $ | (0.13 | ) | |||||
Employee stock options excluded from computation of dilutive loss per share amounts because their effect would be anti-dilutive | 206 | 887 | 648 | 883 | |||||||||||||
EQUITY_TRANSACTIONS
EQUITY TRANSACTIONS | 9 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
EQUITY TRANSACTIONS [Abstract] | ' | ||||||||||||||||
EQUITY TRANSACTIONS | ' | ||||||||||||||||
NOTE 9 - EQUITY TRANSACTIONS | |||||||||||||||||
During the three and nine months ended March 31, 2014 and 2013, stock options to purchase shares of the Company's common stock were exercised as follows: | |||||||||||||||||
Three-Months Ended | Nine-Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||
Options exercised | 13,125 | 46,945 | 13,125 | 50,445 | |||||||||||||
Proceeds (in thousands) | $ | 46 | $ | 40 | $ | 47 | $ | 42 | |||||||||
Average exercise price per share | $ | 3.53 | $ | 0.85 | $ | 3.53 | $ | 0.84 | |||||||||
As of March 31, 2014, there was $497 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 2.86 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 nine months ended March 31, 2014 and 2013, shares were repurchased as follows: | |||||||||||||||||
Three-Months Ended | Nine-Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||
Shares repurchased | - | 25,360 | 136,441 | 25,360 | |||||||||||||
Cash paid for shares repurchased (in thousands) | $ | - | $ | 74 | $ | 607 | $ | 74 | |||||||||
Average price paid per share | $ | - | $ | 2.93 | $ | 4.45 | $ | 2.93 | |||||||||
Total shares repurchased under the program are 161,801 shares at a cost of $0.7 million. As of March 31, 2014, approximately $2.3 million remained of the Company's $3.0 million repurchase program. Sharps purchased all shares with cash resources. | |||||||||||||||||
INVENTORY
INVENTORY | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
INVENTORY [Abstract] | ' | ||||||||
INVENTORY | ' | ||||||||
NOTE 10 – INVENTORY | |||||||||
The components of inventory are as follows (in thousands): | |||||||||
March 31, | June 30, | ||||||||
2014 | 2013 | ||||||||
(Unaudited) | |||||||||
Raw materials | $ | 821 | $ | 887 | |||||
Finished goods | 555 | 745 | |||||||
Total | $ | 1,376 | $ | 1,632 |
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Mar. 31, 2014 | |
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 March 31, 2014 due to their short-term nature. |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Mar. 31, 2014 | |
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) | 9 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
STOCK-BASED COMPENSATION [Abstract] | ' | ||||||||||||||||
Allocated cost of share based compensation | ' | ||||||||||||||||
During the three and nine months ended March 31, 2014 and 2013, stock-based compensation amounts are as follows (in thousands): | |||||||||||||||||
Three-Months Ended | Nine-Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||
Stock-based compensation expense included in: | |||||||||||||||||
Cost of revenue | $ | 4 | $ | 6 | $ | 14 | $ | 14 | |||||||||
General and administrative expense | 118 | 85 | 308 | 400 | |||||||||||||
Total | $ | 122 | $ | 91 | $ | 322 | $ | 414 | |||||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
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 | Nine-Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||
Net loss, as reported | $ | (935 | ) | $ | (955 | ) | $ | (693 | ) | $ | (2,022 | ) | |||||
Weighted average common shares outstanding | 15,248 | 15,246 | 15,296 | 15,229 | |||||||||||||
Effect of dilutive stock options | - | - | - | - | |||||||||||||
Weighted average diluted common shares outstanding | 15,248 | 15,246 | 15,296 | 15,229 | |||||||||||||
Net loss per common share | |||||||||||||||||
Basic | $ | (0.06 | ) | $ | (0.06 | ) | $ | (0.05 | ) | $ | (0.13 | ) | |||||
Diluted | $ | (0.06 | ) | $ | (0.06 | ) | $ | (0.05 | ) | $ | (0.13 | ) | |||||
Employee stock options excluded from computation of dilutive loss per share amounts because their effect would be anti-dilutive | 206 | 887 | 648 | 883 |
EQUITY_TRANSACTIONS_Tables
EQUITY TRANSACTIONS (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
EQUITY TRANSACTIONS [Abstract] | ' | ||||||||||||||||
Stock options exercised to purchase common stock | ' | ||||||||||||||||
During the three and nine months ended March 31, 2014 and 2013, stock options to purchase shares of the Company's common stock were exercised as follows: | |||||||||||||||||
Three-Months Ended | Nine-Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||
Options exercised | 13,125 | 46,945 | 13,125 | 50,445 | |||||||||||||
Proceeds (in thousands) | $ | 46 | $ | 40 | $ | 47 | $ | 42 | |||||||||
Average exercise price per share | $ | 3.53 | $ | 0.85 | $ | 3.53 | $ | 0.84 | |||||||||
Schedule of share repurchases | ' | ||||||||||||||||
During the three and nine months ended March 31, 2014 and 2013, shares were repurchased as follows: | |||||||||||||||||
Three-Months Ended | Nine-Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(Unaudited) | (Unaudited) | ||||||||||||||||
Shares repurchased | - | 25,360 | 136,441 | 25,360 | |||||||||||||
Cash paid for shares repurchased (in thousands) | $ | - | $ | 74 | $ | 607 | $ | 74 | |||||||||
Average price paid per share | $ | - | $ | 2.93 | $ | 4.45 | $ | 2.93 |
INVENTORY_Tables
INVENTORY (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
INVENTORY [Abstract] | ' | ||||||||
Components of inventory | ' | ||||||||
The components of inventory are as follows (in thousands): | |||||||||
March 31, | June 30, | ||||||||
2014 | 2013 | ||||||||
(Unaudited) | |||||||||
Raw materials | $ | 821 | $ | 887 | |||||
Finished goods | 555 | 745 | |||||||
Total | $ | 1,376 | $ | 1,632 |
INCOME_TAXES_Details
INCOME TAXES (Details) | 9 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Effective income tax rate reconciliation [Abstract] | ' | ' |
Effective income tax rate (in hundredths) | -3.60% | -1.50% |
NOTES_PAYABLE_AND_LONGTERM_DEB1
NOTES PAYABLE AND LONG-TERM DEBT (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Credit Agreement [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Period of line of credit | '2 years |
Maximum borrowing capacity | $3,000,000 |
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% |
Interest rate (in hundredths) | 3.25% |
Unused capacity, commitment fee percentage (in hundredths) | 0.25% |
Amount outstanding | 0 |
Remaining borrowing capacity | 2,700,000 |
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 |
Prior Agreement [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Amount outstanding | 0 |
Letters of Credit [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Maximum borrowing capacity | 500,000 |
Letters of Credit [Member] | Credit Agreement [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Amount outstanding | 335,000 |
Letters of Credit [Member] | Prior Agreement [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Maximum borrowing capacity | 200,000 |
Amount outstanding | $110,000 |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $122 | $91 | $322 | $414 |
Cost of Revenue [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | 4 | 6 | 14 | 14 |
General and Administrative Expense [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expense | $118 | $85 | $308 | $400 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Jun. 30, 2013 | |
EARNINGS PER SHARE [Abstract] | ' | ' | ' | ' | ' | |
Net loss, as reported | ($935) | ($955) | ($693) | [1] | ($2,022) | ($2,712) |
Weighted average common shares outstanding (in shares) | 15,248 | 15,246 | 15,296 | 15,229 | ' | |
Effect of dilutive stock options (in shares) | 0 | 0 | 0 | 0 | ' | |
Weighted average diluted common shares outstanding (in shares) | 15,248 | 15,246 | 15,296 | 15,229 | ' | |
Net loss per common share [Abstract] | ' | ' | ' | ' | ' | |
Basic (in dollars per share) | ($0.06) | ($0.06) | ($0.05) | ($0.13) | ' | |
Diluted (in dollars per share) | ($0.06) | ($0.06) | ($0.05) | ($0.13) | ' | |
Employee stock options excluded from computation of dilutive loss per share amounts because their effect would be anti-dilutive | 206 | 887 | 648 | 883 | ' | |
[1] | unaudited |
EQUITY_TRANSACTIONS_Details
EQUITY TRANSACTIONS (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Jun. 30, 2013 | |
Stock options exercised [Abstract] | ' | ' | ' | ' | ' |
Options exercised (in shares) | 13,125 | 46,945 | 13,125 | 50,445 | ' |
Proceeds | $46,000 | $40,000 | $47,000 | $42,000 | ' |
Average exercise price per share (in dollars per share) | $3.53 | $0.85 | $3.53 | $0.84 | ' |
Compensation expense related to non-vested awards | 497,000 | ' | 497,000 | ' | ' |
Weighted average period | ' | ' | '2 years 10 months 10 days | ' | ' |
Stock repurchase program, authorized amount | ' | ' | 3,000,000 | ' | ' |
Stock repurchase program, period | ' | ' | '2 years | ' | ' |
Shares repurchased [Abstract] | ' | ' | ' | ' | ' |
Shares repurchased (in shares) | 0 | 25,360 | 136,441 | 25,360 | ' |
Cash paid for shares repurchased | 0 | 74,000 | 607,000 | 74,000 | ' |
Average price paid per share (in dollars per share) | $0 | $2.93 | $4.45 | $2.93 | ' |
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 $) | Mar. 31, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Components of inventory [Abstract] | ' | ' |
Raw materials | $821 | $887 |
Finished goods | 555 | 745 |
Total | $1,376 | $1,632 |