Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2022 | Apr. 29, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Document Transition Report | false | |
Entity File Number | 000-23329 | |
Entity Registrant Name | Charles & Colvard, Ltd. | |
Entity Central Index Key | 0001015155 | |
Entity Incorporation, State or Country Code | NC | |
Entity Tax Identification Number | 56-1928817 | |
Entity Address, Address Line One | 170 Southport Drive | |
Entity Address, City or Town | Morrisville | |
Entity Address, State or Province | NC | |
Entity Address, Postal Zip Code | 27560 | |
City Area Code | 919 | |
Local Phone Number | 468-0399 | |
Title of 12(b) Security | Common Stock, no par value per share | |
Trading Symbol | CTHR | |
Security Exchange Name | NASDAQ | |
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 | 30,688,796 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 16,861,685 | $ 21,302,317 |
Restricted cash | 5,050,000 | 144,634 |
Accounts receivable, net | 1,565,541 | 1,662,074 |
Inventory, net | 13,440,016 | 11,450,141 |
Note receivable | 250,000 | 250,000 |
Prepaid expenses and other assets | 1,328,244 | 952,065 |
Total current assets | 38,495,486 | 35,761,231 |
Long-term assets: | ||
Inventory, net | 19,063,408 | 17,722,579 |
Property and equipment, net | 1,781,966 | 875,897 |
Intangible assets, net | 242,554 | 209,658 |
Operating lease right-of-use assets | 2,935,124 | 3,952,146 |
Deferred income taxes, net | 5,867,662 | 6,350,830 |
Other assets | 49,658 | 49,658 |
Total long-term assets | 29,940,372 | 29,160,768 |
TOTAL ASSETS | 68,435,858 | 64,921,999 |
Current liabilities: | ||
Accounts payable | 3,130,684 | 2,774,373 |
Operating lease liabilities | 850,781 | 566,083 |
Accrued expenses and other liabilities | 2,053,873 | 2,281,807 |
Total current liabilities | 6,035,338 | 5,622,263 |
Long-term liabilities: | ||
Noncurrent operating lease liabilities | 3,039,216 | 3,600,842 |
Accrued income taxes | 11,292 | 9,878 |
Total long-term liabilities | 3,050,508 | 3,610,720 |
Total liabilities | 9,085,846 | 9,232,983 |
Commitments and contingencies (Note 9) | ||
Shareholders' equity: | ||
Common stock, no par value; 50,000,000 shares authorized; 30,688,796 and 29,913,095 shares issued and outstanding at March 31, 2022 and June 30, 2021, respectively | 57,066,143 | 56,057,109 |
Additional paid-in capital | 25,927,410 | 25,608,593 |
Accumulated deficit | (23,643,541) | (25,976,686) |
Total shareholders' equity | 59,350,012 | 55,689,016 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 68,435,858 | $ 64,921,999 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2022 | Jun. 30, 2021 |
Shareholders' equity | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 30,688,796 | 29,913,095 |
Common stock, shares outstanding (in shares) | 30,688,796 | 29,913,095 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ||||
Net sales | $ 9,751,835 | $ 9,436,056 | $ 33,785,281 | $ 29,509,140 |
Costs and expenses: | ||||
Cost of goods sold | 5,296,530 | 5,093,452 | 17,347,026 | 15,457,215 |
Sales and marketing | 2,932,587 | 2,211,350 | 9,741,774 | 6,339,854 |
General and administrative | 1,106,850 | 1,092,683 | 3,880,684 | 3,278,246 |
Total costs and expenses | 9,335,967 | 8,397,485 | 30,969,484 | 25,075,315 |
Income from operations | 415,868 | 1,038,571 | 2,815,797 | 4,433,825 |
Other income (expense): | ||||
Interest income | 1,120 | 540 | 1,964 | 5,126 |
Interest expense | 0 | (2,412) | 0 | (7,318) |
Loss on foreign currency exchange | 0 | 0 | (34) | (603) |
Total other income (expense), net | 1,120 | (1,872) | 1,930 | (2,795) |
Income before income taxes | 416,988 | 1,036,699 | 2,817,727 | 4,431,030 |
Income tax expense | (78,480) | (472) | (484,582) | (1,460) |
Net income | $ 338,508 | $ 1,036,227 | $ 2,333,145 | $ 4,429,570 |
Net income per common share: | ||||
Basic (in dollars per share) | $ 0.01 | $ 0.04 | $ 0.08 | $ 0.15 |
Diluted (in dollars per share) | $ 0.01 | $ 0.03 | $ 0.07 | $ 0.15 |
Weighted average number of shares used in computing net income per common share: | ||||
Basic (in shares) | 30,484,897 | 29,320,434 | 30,286,195 | 28,967,946 |
Diluted (in shares) | 31,268,410 | 30,525,438 | 31,271,677 | 29,667,729 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Total |
Balance at Jun. 30, 2020 | $ 54,342,864 | $ 25,880,165 | $ (38,787,452) | $ 41,435,577 |
Balance (in shares) at Jun. 30, 2020 | 28,949,410 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock-based compensation | $ 0 | 107,355 | 0 | 107,355 |
Issuance of restricted stock | $ 0 | 0 | 0 | 0 |
Issuance of restricted stock (in shares) | 178,750 | |||
Retirement of restricted stock | $ 0 | 0 | 0 | 0 |
Retirement of restricted stock (in shares) | (162,500) | |||
Net income | $ 0 | 0 | 874,266 | 874,266 |
Balance at Sep. 30, 2020 | $ 54,342,864 | 25,987,520 | (37,913,186) | 42,417,198 |
Balance (in shares) at Sep. 30, 2020 | 28,965,660 | |||
Balance at Jun. 30, 2020 | $ 54,342,864 | 25,880,165 | (38,787,452) | 41,435,577 |
Balance (in shares) at Jun. 30, 2020 | 28,949,410 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 4,429,570 | |||
Balance at Mar. 31, 2021 | $ 55,932,808 | 25,575,521 | (34,357,882) | 47,150,447 |
Balance (in shares) at Mar. 31, 2021 | 29,852,950 | |||
Balance at Sep. 30, 2020 | $ 54,342,864 | 25,987,520 | (37,913,186) | 42,417,198 |
Balance (in shares) at Sep. 30, 2020 | 28,965,660 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock-based compensation | $ 0 | 87,938 | 0 | 87,938 |
Stock option exercises | $ 177,325 | (62,326) | 0 | 114,999 |
Stock option exercises (in shares) | 126,666 | |||
Net income | $ 0 | 0 | 2,519,077 | 2,519,077 |
Balance at Dec. 31, 2020 | $ 54,520,189 | 26,013,132 | (35,394,109) | 45,139,212 |
Balance (in shares) at Dec. 31, 2020 | 29,092,326 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock-based compensation | $ 0 | 76,916 | 0 | 76,916 |
Stock option exercises | $ 1,412,619 | (514,527) | 0 | 898,092 |
Stock option exercises (in shares) | 760,624 | |||
Net income | $ 0 | 0 | 1,036,227 | 1,036,227 |
Balance at Mar. 31, 2021 | $ 55,932,808 | 25,575,521 | (34,357,882) | 47,150,447 |
Balance (in shares) at Mar. 31, 2021 | 29,852,950 | |||
Balance at Jun. 30, 2021 | $ 56,057,109 | 25,608,593 | (25,976,686) | 55,689,016 |
Balance (in shares) at Jun. 30, 2021 | 29,913,095 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock-based compensation | $ 0 | 279,407 | 0 | 279,407 |
Issuance of restricted stock | $ 0 | 0 | 0 | 0 |
Issuance of restricted stock (in shares) | 242,725 | |||
Stock option exercises | $ 397,112 | (139,742) | 0 | 257,370 |
Stock option exercises (in shares) | 183,637 | |||
Net income | $ 0 | 0 | 827,025 | 827,025 |
Balance at Sep. 30, 2021 | $ 56,454,221 | 25,748,258 | (25,149,661) | 57,052,818 |
Balance (in shares) at Sep. 30, 2021 | 30,339,457 | |||
Balance at Jun. 30, 2021 | $ 56,057,109 | 25,608,593 | (25,976,686) | 55,689,016 |
Balance (in shares) at Jun. 30, 2021 | 29,913,095 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income | 2,333,145 | |||
Balance at Mar. 31, 2022 | $ 57,066,143 | 25,927,410 | (23,643,541) | 59,350,012 |
Balance (in shares) at Mar. 31, 2022 | 30,688,796 | |||
Balance at Sep. 30, 2021 | $ 56,454,221 | 25,748,258 | (25,149,661) | 57,052,818 |
Balance (in shares) at Sep. 30, 2021 | 30,339,457 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock-based compensation | $ 0 | 199,004 | 0 | 199,004 |
Stock option exercises | $ 447,877 | (159,329) | 0 | 288,548 |
Stock option exercises (in shares) | 255,590 | |||
Net income | $ 0 | 0 | 1,167,612 | 1,167,612 |
Balance at Dec. 31, 2021 | $ 56,902,098 | 25,787,933 | (23,982,049) | 58,707,982 |
Balance (in shares) at Dec. 31, 2021 | 30,595,047 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock-based compensation | $ 0 | 198,523 | 0 | 198,523 |
Stock option exercises | $ 164,045 | (59,046) | 0 | 104,999 |
Stock option exercises (in shares) | 93,749 | |||
Net income | $ 0 | 0 | 338,508 | 338,508 |
Balance at Mar. 31, 2022 | $ 57,066,143 | $ 25,927,410 | $ (23,643,541) | $ 59,350,012 |
Balance (in shares) at Mar. 31, 2022 | 30,688,796 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 2,333,145 | $ 4,429,570 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 350,198 | 419,511 |
Stock-based compensation | 676,934 | 272,209 |
Provision for uncollectible accounts | 26,000 | 53,514 |
(Recovery of) Provision for sales returns | (25,000) | 67,000 |
Inventory write-off | 232,000 | 128,000 |
Provision for accounts receivable discounts | 3,269 | 29,123 |
Deferred income taxes | 483,168 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 92,264 | (1,617,077) |
Inventory | (3,562,704) | 1,559,759 |
Prepaid expenses and other assets, net | 640,843 | (3,451,872) |
Accounts payable | 356,311 | (827,665) |
Accrued income taxes | 1,414 | 1,460 |
Accrued expenses and other liabilities | (504,862) | 3,604,002 |
Net cash provided by operating activities | 1,102,980 | 4,667,534 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (1,250,296) | (346,112) |
Payment to fund note receivable | 0 | (250,000) |
Payments for intangible assets | (38,867) | (26,374) |
Net cash used in investing activities | (1,289,163) | (622,486) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Stock option exercises | 650,917 | 1,013,091 |
Net cash provided by financing activities | 650,917 | 1,013,091 |
NET INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 464,734 | 5,058,139 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF PERIOD | 21,446,951 | 14,617,234 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD | 21,911,685 | 19,675,373 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Additions to right-of-use assets in connection with operating lease liabilities | 0 | 3,908,249 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for income taxes | $ 0 | $ 9,050 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 9 Months Ended |
Mar. 31, 2022 | |
DESCRIPTION OF BUSINESS [Abstract] | |
DESCRIPTION OF BUSINESS | 1. DESCRIPTION OF BUSINESS Charles & Colvard, Ltd. (the “Company”), a North Carolina corporation, was founded in 1995. The Company manufactures, markets, and distributes Charles & Colvard Created Moissanite ® Forever One™ Caydia ® The Company sells loose moissanite jewels, loose lab grown diamonds, and finished jewelry featuring both moissanite and lab grown diamonds at wholesale prices to distributors, manufacturers, retailers, and designers, including some of the largest distributors and jewelry manufacturers in the world. The Company’s finished jewelry and loose moissanite jewels and lab grown diamonds that are mounted into fine jewelry by other manufacturers are sold at retail outlets and via the Internet. The Company sells at retail prices to end-consumers through its wholly owned operating subsidiary, charlesandcolvard.com, LLC, third-party online marketplaces, drop-ship, and other pure-play, exclusively e-commerce outlets. The Company also sells at discount retail prices to end-consumers through moissaniteoutlet.com, LLC, a wholly owned operating subsidiary of charlesandcolvard.com, LLC, and third-party online marketplaces. |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Mar. 31, 2022 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. However, certain information or footnote disclosures normally included in complete financial statements prepared in accordance with U.S. GAAP have been condensed, or omitted, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of the Company’s management, the unaudited condensed consolidated financial statements in this Quarterly Report on Form 10-Q include all normal and recurring adjustments necessary for the fair statement of the results for the interim periods presented. The results for the nine months ended March 31, 2022 are not necessarily indicative of the results to be expected for the fiscal year ending June 30, 2022. The condensed consolidated financial statements as of March 31, 2022 and for the three and nine months ended March 31, 2022 and 2021 included in this Quarterly Report on Form 10-Q are unaudited. The balance sheet as of June 30, 2021 is derived from the audited financial statements as of that date. The accompanying statements should be read in conjunction with the audited financial statements and related notes contained in Item 8 of the Company’s Annual Report on Form 10-K (the “2021 Annual Report”) for the fiscal year ended June 30, 2021 filed with the SEC on September 3, 2021. The accompanying condensed consolidated financial statements as of March 31, 2022, for the three and nine months ended March 31, 2022 and 2021, and as of June 30, 2021, include the accounts of the Company and its wholly owned subsidiaries charlesandcolvard.com, LLC, including its wholly-owned subsidiary, moissaniteoulet.com, LLC, which was formed and incorporated as of February 24, 2022 Significant Accounting Policies – Use of Estimates Cash and Cash Equivalents – Restricted Cash – In accordance with cash management process requirements related to the Company’s asset-based revolving credit facility from White Oak Commercial Finance, LLC (“White Oak”), which the Company had in place prior to obtaining the JPMorgan Chase Credit Facility, there were access and usage restrictions on certain cash deposit balances for periods of up to two The reconciliation of cash, cash equivalents, and restricted cash, as presented on the Condensed Consolidated Statements of Cash Flows, consist of the following as of the dates presented: March 31, 2022 June 30, 2021 Cash and cash equivalents $ 16,861,685 $ 21,302,317 Restricted cash 5,050,000 144,634 Total cash, cash equivalents, and restricted cash $ 21,911,685 $ 21,446,951 Recently Adopted/Issued Accounting Pronouncements – In March 2020, and as updated in January 2021, in response to concerns about structural risks of interbank offered rates (“IBORs”), and, particularly, the risk of cessation of the London Interbank Offered Rate (“LIBOR”), the FASB issued new guidance to ease the burden in accounting for or recognizing the effects of reference interest rate reform on financial reporting. The new guidance is effective as of March 12, 2020 through December 31, 2022. As described in more detail in Note 10, “Debt”, borrowings under the Company’s new line of credit are based on a rate equal to the one-month LIBOR. As of March 31, 2022, the Company had not borrowed against its line of credit, and therefore, is not subject to recognizing or disclosing any effect of reference rate reform as of March 31, 2022. |
SEGMENT INFORMATION AND GEOGRAP
SEGMENT INFORMATION AND GEOGRAPHIC DATA | 9 Months Ended |
Mar. 31, 2022 | |
SEGMENT INFORMATION AND GEOGRAPHIC DATA [Abstract] | |
SEGMENT INFORMATION AND GEOGRAPHIC DATA | 3. SEGMENT INFORMATION AND GEOGRAPHIC DATA The Company reports segment information based on the “management” approach. The management approach designates the internal reporting used by management for making operating decisions and assessing performance as the source of the Company’s operating and reportable segments. The Company manages its business through two operating and reportable segments based on its distribution channels to sell its product lines, loose jewels and finished jewelry: its “Online Channels” segment, which consists of e-commerce outlets including charlesandcolvard.com, moissaniteoutlet.com, third-party online marketplaces, drop-ship retail, and other pure-play, exclusively e-commerce outlets; and its “Traditional” segment, which consists of wholesale and retail customers. The accounting policies of the Online Channels segment and Traditional segment are the same as those described in Note 2, “Basis of Presentation and Significant Accounting Policies” of this Quarterly Report on Form 10-Q and in the Notes to the Consolidated Financial Statements in the 2021 Annual Report. The Company evaluates the financial performance of its segments based on net sales; product line gross profit, or the excess of product line sales over product line cost of goods sold; and operating income. The Company’s product line cost of goods sold is defined as product cost of goods sold, excluding non-capitalized expenses from the Company’s manufacturing and production control departments, comprising personnel costs, depreciation, leases, utilities, and corporate overhead allocations; freight out; inventory write-downs; and other inventory adjustments, comprising costs of quality issues, and damaged goods. The Company allocates certain general and administrative expenses between its Online Channels segment and its Traditional segment based on net sales and number of employees to arrive at segment operating income. Unallocated expenses remain in its Traditional segment. Summary financial information by reportable segment is as follows: Three Months Ended March 31, 2022 Online Channels Traditional Total Net sales Finished jewelry $ 5,720,197 $ 1,700,394 $ 7,420,591 Loose jewels 634,617 1,696,627 2,331,244 Total $ 6,354,814 $ 3,397,021 $ 9,751,835 Product line cost of goods sold Finished jewelry $ 2,560,952 $ 1,148,912 $ 3,709,864 Loose jewels 229,714 784,272 1,013,986 Total $ 2,790,666 $ 1,933,184 $ 4,723,850 Product line gross profit Finished jewelry $ 3,159,245 $ 551,482 $ 3,710,727 Loose jewels 404,903 912,355 1,317,258 Total $ 3,564,148 $ 1,463,837 $ 5,027,985 Operating income $ 350,276 $ 65,592 $ 415,868 Depreciation and amortization $ 52,613 $ 59,374 $ 111,987 Capital expenditures $ 28,145 $ 446,445 $ 474,590 Three Months Ended March 31, 2021 Online Channels Traditional Total Net sales Finished jewelry $ 4,902,964 $ 1,316,928 $ 6,219,892 Loose jewels 680,804 2,535,360 3,216,164 Total $ 5,583,768 $ 3,852,288 $ 9,436,056 Product line cost of goods sold Finished jewelry $ 2,045,519 $ 1,006,417 $ 3,051,936 Loose jewels 246,302 1,222,036 1,468,338 Total $ 2,291,821 $ 2,228,453 $ 4,520,274 Product line gross profit Finished jewelry $ 2,857,445 $ 310,511 $ 3,167,956 Loose jewels 434,502 1,313,324 1,747,826 Total $ 3,291,947 $ 1,623,835 $ 4,915,782 Operating income $ 751,953 $ 286,618 $ 1,038,571 Depreciation and amortization $ 67,373 $ 81,077 $ 148,450 Capital expenditures $ 22,770 $ 55,858 $ 78,628 Nine Months Ended March 31, 2022 Online Channels Traditional Total Net sales Finished jewelry $ 18,659,690 $ 4,986,354 $ 23,646,044 Loose jewels 2,388,584 7,750,653 10,139,237 Total $ 21,048,274 $ 12,737,007 $ 33,785,281 Product line cost of goods sold Finished jewelry $ 7,705,127 $ 3,043,196 $ 10,748,323 Loose jewels 877,604 3,630,393 4,507,997 Total $ 8,582,731 $ 6,673,589 $ 15,256,320 Product line gross profit Finished jewelry $ 10,954,563 $ 1,943,158 $ 12,897,721 Loose jewels 1,510,980 4,120,260 5,631,240 Total $ 12,465,543 $ 6,063,418 $ 18,528,961 Operating income $ 2,104,674 $ 711,123 $ 2,815,797 Depreciation and amortization $ 173,786 $ 176,412 $ 350,198 Capital expenditures $ 114,445 $ 1,135,851 $ 1,250,296 Nine Months Ended March 31, 2021 Online Channels Traditional Total Net sales Finished jewelry $ 15,114,765 $ 3,705,663 $ 18,820,428 Loose jewels 2,520,576 8,168,136 10,688,712 Total $ 17,635,341 $ 11,873,799 $ 29,509,140 Product line cost of goods sold Finished jewelry $ 6,242,635 $ 2,565,737 $ 8,808,372 Loose jewels 947,417 4,070,446 5,017,863 Total $ 7,190,052 $ 6,636,183 $ 13,826,235 Product line gross profit Finished jewelry $ 8,872,130 $ 1,139,926 $ 10,012,056 Loose jewels 1,573,159 4,097,690 5,670,849 Total $ 10,445,289 $ 5,237,616 $ 15,682,905 Operating income $ 3,021,067 $ 1,412,758 $ 4,433,825 Depreciation and amortization $ 180,946 $ 238,565 $ 419,511 Capital expenditures $ 195,695 $ 150,417 $ 346,112 The Company does not allocate any assets to the reportable segments, and, therefore, no asset information is reported to the chief operating decision maker or disclosed in the financial information for each segment. A reconciliation of the Company’s product line cost of goods sold to cost of goods sold as reported in the condensed consolidated financial statements is as follows: Three Months Ended March 31, Nine Months Ended March 31, 2022 2021 2022 2021 Product line cost of goods sold $ 4,723,850 $ 4,520,274 $ 15,256,320 $ 13,826,235 Non-capitalized manufacturing and production control expenses 484,299 398,073 1,243,528 1,122,715 Freight out 294,143 191,700 976,855 683,580 Inventory write-off - 23,000 232,000 128,000 Other inventory adjustments (205,762 ) (39,595 ) (361,677 ) (303,315 ) Cost of goods sold $ 5,296,530 $ 5,093,452 $ 17,347,026 $ 15,457,215 The Company recognizes sales by geographic area based on the country in which the customer is based. Sales to international end consumers made through the Company’s transactional websites, charlesandcolvard.com and moissaniteoutlet.com, are included in international sales for financial reporting purposes. A portion of the Company’s Traditional segment sales made to international wholesale distributors represents products sold internationally that may be re-imported to U.S. retailers. The following presents net sales by geographic area: Three Months Ended March 31, Nine Months Ended March 31, 2022 2021 2022 2021 Net sales United States $ 9,390,774 $ 8,969,267 $ 32,237,221 $ 27,857,667 International 361,061 466,789 1,548,060 1,651,473 Total $ 9,751,835 $ 9,436,056 $ 33,785,281 $ 29,509,140 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Mar. 31, 2022 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
FAIR VALUE MEASUREMENTS | 4. FAIR VALUE MEASUREMENTS Under U.S. GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are obtained from independent sources and can be validated by a third party, whereas unobservable inputs reflect assumptions regarding what a third party would use in pricing an asset or liability. The fair value hierarchy consists of three levels based on the reliability of inputs, as follows: Level 1. Level 2. Level 3. The Company evaluates assets and liabilities subject to fair value measurements on a recurring and non-recurring basis to determine the appropriate level to classify them for each reporting period. This determination requires significant judgments to be made by management of the Company. The financial instruments identified as subject to fair value measurements on a recurring basis are cash and cash equivalents, notes receivable, trade accounts receivable, and trade accounts payable. All financial instruments are reflected in the condensed consolidated balance sheets at carrying value, which approximates fair value due to the short-term nature of these financial instruments. Assets that are measured at fair value on a non-recurring basis include property and equipment, leasehold improvements, and intangible assets comprising patents, license rights, and trademarks. These items are recognized at fair value when they are considered to be impaired. For the three and nine months ended March 31, 2022 and 2021, no impairment was recorded. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Mar. 31, 2022 | |
INVENTORIES [Abstract] | |
INVENTORIES | 5. INVENTORIES The Company’s total inventories, net of reserves, consisted of the following as of the dates presented: March 31, 2022 June 30, 2021 Finished jewelry: Raw materials $ 1,469,003 $ 1,476,514 Work-in-process 1,279,987 779,593 Finished goods 11,386,771 8,025,816 Finished goods on consignment 2,258,071 2,050,372 Total finished jewelry $ 16,393,832 $ 12,332,295 Loose jewels: Raw materials $ 1,692,819 $ 1,775,505 Work-in-process 8,285,457 9,893,443 Finished goods 5,714,303 4,942,192 Finished goods on consignment 328,167 154,968 Total loose jewels 16,020,746 16,766,108 Total supplies inventory 88,846 74,317 Total inventory $ 32,503,424 $ 29,172,720 As of the dates presented, the Company’s total inventories, net of reserves, are classified as follows: March 31, 2022 June 30, 2021 Short-term portion $ 13,440,016 $ 11,450,141 Long-term portion 19,063,408 17,722,579 Total $ 32,503,424 $ 29,172,720 The Company’s work-in-process inventories include raw SiC crystals on which processing costs, such as labor and sawing, have been incurred; and components, such as metal castings and finished goods set with moissanite jewels, that have been issued to jobs in the manufacture of finished jewelry. The Company’s moissanite jewel manufacturing process involves the production of intermediary shapes, called “preforms,” that vary depending upon the expected size and shape of the finished jewel. To maximize manufacturing efficiencies, preforms may be made in advance of current finished inventory needs but remain in work-in-process inventories. As of March 31, 2022 and June 30, 2021, work-in-process inventories issued to active production jobs approximated $2.44 million and $2.23 million, respectively. The Company’s moissanite and lab grown diamond jewels do not degrade in quality over time and inventory generally consists of the shapes and sizes most commonly used in the jewelry industry. In addition, approximately one-half The Company manufactures finished jewelry featuring moissanite and lab grown diamonds. Relative to loose moissanite jewels and lab grown diamonds, finished jewelry is more fashion-oriented and subject to styling trends that could render certain designs obsolete over time. The majority of the Company’s finished jewelry featuring moissanite and lab grown diamonds is held in inventory for resale and largely consists of such core designs as stud earrings, solitaire and three-stone rings, pendants, and bracelets that tend not to be subject to significant obsolescence risk due to their classic styling. In addition, the Company generally holds smaller quantities of designer-inspired and trend moissanite fashion jewelry that is available for resale through retail companies and through its Online Channels segment. The Company also carries a limited amount of inventory as part of its sample line that the Company uses in the selling process to its customers. The Company’s continuing operating subsidiaries carry no net inventories, and inventory is transferred without intercompany markup from the parent entity as product line cost of goods sold when sold to the end consumer. The Company’s inventories are stated at the lower of cost or net realizable value on an average cost basis. Each accounting period the Company evaluates the valuation and classification of inventories including the need for potential adjustments to inventory-related reserves, which include significant estimates by management, including the effect of market factors and sales trends. . |
NOTE RECEIVABLE
NOTE RECEIVABLE | 9 Months Ended |
Mar. 31, 2022 | |
NOTE RECEIVABLE [Abstract] | |
NOTE RECEIVABLE | 6. NOTE RECEIVABLE On March 5, 2021, the Company entered into a $250,000 convertible promissory note agreement (the “Convertible Promissory Note”) with an unrelated third-party strategic marketing partner. The Convertible Promissory Note is unsecured and originally matured on March 5, 2022. In February 2022, the Company entered into an amendment to the Convertible Promissory Note that was effective as of December 9, 2021 and changed the maturity date to September 30, 2022 (the “Maturity Date”). Convertible is accrued at a simple rate of 0.14% per annum and will accrue until the Convertible Promissory Note is converted in accordance with the conversion privileges contained within the Convertible Promissory Note or is repaid. Convertible Promissory Note Subject to the borrower’s completion of a specified equity financing transaction (an “Equity Financing”) on or prior to the Maturity Date, the unpaid principal amount, including accrued and unpaid interest, automatically converts into equity units of the most senior class of equity securities issued to investors in the Equity Financing at the lesser of 80% of the per unit price of the units purchased by investors or the price equal to $33,500,000 divided by the aggregate number of outstanding units of the borrower immediately prior to the closing of the financing. Unless converted as provided in the Convertible Promissory Note, the principal amount, including accrued and unpaid interest, will, on the Maturity Date, at the Company’s option either ( i ii |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 9 Months Ended |
Mar. 31, 2022 | |
ACCRUED EXPENSES AND OTHER LIABILITIES [Abstract] | |
ACCRUED EXPENSES AND OTHER LIABILITIES | 7. ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities consist of the following as of the dates presented: March 31, 2022 June 30, 2021 Accrued sales tax $ 811,366 $ 555,547 Accrued compensation and related benefits 631,117 866,705 Deferred revenue 505,148 774,891 Accrued cooperative advertising 89,763 68,185 Accrued income taxes 16,478 16,478 Other 1 1 Total accrued expenses and other liabilities $ 2,053,873 $ 2,281,807 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Mar. 31, 2022 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 8. INCOME TAXES For each of the three and nine months ended March 31, 2022, the Company’s statutory tax rate was 22.24% and consisted of the federal income tax rate of 21% and a blended state income tax rate of 1.24%, net of the federal benefit. For each of the three and nine months ended March 31 March 31 As of each reporting date, the Company’s management considers new evidence, both positive and negative, that could impact its view with regard to future realization of deferred tax assets. As of June 30, 2021, cumulative positive taxable income over the last three tax years had been generated in the U.S., as compared to the negative evidence of cumulative losses in previous years. The Company’s management also determined that its expectations of future taxable income in upcoming tax years, including estimated growth rates applied to future expected taxable income that included significant management estimates and assumptions, would be sufficient to result in full utilization of the Company’s federal net operating loss carryforwards and certain of the deferred tax assets prior to any statutory expiration. As a result, the Company’s management determined that sufficient positive evidence existed as of June 30, 2021, to conclude that it was more likely than not deferred tax assets of approximately $6.35 million would be realizable, and it reduced the Company’s valuation allowance accordingly. Accordingly, the Company recognized a net income tax expense of approximately $78,000 and $485,000 for the three and nine months ended March 31 1,500 March 31 the Company records estimated taxes $500 for each of the three months ended March 31, 2022 and 2021, respectively, and approximately $1,500 for each of the nine months ended March 31, 2022 and 2021, respectively As of March 31, 2022 March 31 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Mar. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 9. COMMITMENTS AND CONTINGENCIES Lease Arrangements On December 9, 2013, the Company entered into a Lease Agreement, as amended on December 23, 2013, April 15, 2014, and January 29, 2021 (the “Lease Agreement”), for its corporate headquarters, which occupies approximately 36,350 square feet of office, storage and light manufacturing space and is classified as an operating lease for financial reporting purposes. The expiration date of the base term of the Lease Agreement in effect as of March 31, 2022 is October 31, 2026 and the terms of the Lease Agreement contain no early termination provisions. Provided there is no outstanding uncured event of default under the Lease Agreement, the Company has an option to extend the lease term for a period of five years. The Company’s option to extend the term of the Lease Agreement must be exercised in writing on or before 270 days prior to expiration of the then-current term. If the option is exercised, the monthly minimum rent for each of the extended terms will be adjusted to the then prevailing fair market rate. The Company took possession of the leased property on May 23, 2014, once certain improvements to the leased space were completed and did not have access to the property before this date. Upon execution of the third amendment to the Lease Agreement (the “Lease Amendment”) on January 29, 2021, the Lease Amendment included a rent abatement in the amount of approximately $214,000, which is reflected in the rent payments used in the calculation of the right-of-use (“ROU”) asset and lease liability once remeasured upon the execution of the Lease Amendment to extend the lease term. The Lease Amendment also included an allowance for leasehold improvements offered by the landlord in an amount not to exceed approximately $545,000. During the three months ended March 31, 2022, the Company was reimbursed $506,054 by the landlord for qualified leasehold improvements in accordance with the terms of the Lease Amendment. This reimbursement by the landlord reduced the remaining ROU asset by the same amount and will be recognized prospectively over the remaining term of the lease. The Company has no other material operating leases and is not party to leases that would qualify for classification as a finance lease, variable lease, or short-term lease. As of March 31, 2022, the Company’s balance sheet classifications of its leases are as follows: Operating Leases: Noncurrent operating lease ROU assets $ 2,935,124 Current operating lease liabilities $ 850,781 Noncurrent operating lease liabilities 3,039,216 Total operating lease liabilities $ 3,889,997 The Company’s total operating lease cost was approximately $193,000 and $192,000 for the three months ended March 31, 2022 and 2021, respectively. The Company’s total operating lease cost was approximately $596,000 and $473,000 for the nine months ended March 31, 2022 and 2021, respectively. As of March 31, 2021, the Company’s estimated incremental borrowing rate used and assumed discount rate with respect to operating leases was 2.81% and the remaining operating lease term was 4.58 years. As of March 31, 2022, the Company’s remaining future payments under operating leases for each fiscal year ending June 30 are as follows: 2022 $ 213,521 2023 869,742 2024 893,660 2025 918,236 2026 943,487 2027 317,327 Total lease payments 4,155,973 Less: imputed interest 265,976 Present value of lease payments 3,889,997 Less: current lease liability 850,781 Total long-term lease liability $ 3,039,216 The Company makes cash payments for amounts included in the measurement of its lease liabilities. During the three months ended March 31, 2022 and 2021, cash paid for operating leases was approximately $160,000 in each period presented. During the nine months ended March 31, 2022 and 2021, cash paid for operating leases was approximately $330,000 and $481,000, respectively. Upon the execution of the Lease Amendment, the Company recorded additional ROU assets in the amount of approximately $3.9 million obtained in exchange for the additional operating lease liability during the fiscal year ended June 30, 2021. Purchase Commitments On December 12, 2014, the Company entered into an exclusive supply agreement (the “Supply Agreement”) with Cree, Inc., now known as Wolfspeed, Inc. (“Wolfspeed”). Under the Supply Agreement, subject to certain terms and conditions, the Company agreed to exclusively purchase from Wolfspeed, and Wolfspeed agreed to exclusively supply, 100% of the Company’s required SiC materials in quarterly installments that must equal or exceed a set minimum order quantity. The initial term of the Supply Agreement was scheduled to expire on June 24, 2018, unless extended by the parties. Effective June 22, 2018, the Supply Agreement was amended to extend the expiration date to June 25, 2023. The Supply Agreement was also amended to (i) provide the Company with one option, subject to certain conditions, to unilaterally extend the term of the Supply Agreement for an additional two-year period following expiration of the initial term; (ii) establish a process by which Wolfspeed may begin producing alternate SiC material based on the Company’s specifications that will give the Company the flexibility to use the materials in a broader variety of its products; and (iii) permit the Company to purchase certain amounts of SiC materials from third parties under limited conditions. Effective June 30, 2020, the Supply Agreement was further amended to extend the expiration date to June 29, 2025, which may be extended again by mutual agreement of the parties. The Supply Agreement was also amended to, among other things, (i) spread the Company’s total purchase commitment under the Supply Agreement in the amount of approximately $52.95 million over the term of the Supply Agreement, as amended; (ii) establish a process by which Wolfspeed has agreed to accept purchase orders in excess of the agreed-upon minimum purchase commitment, subject to certain conditions; and (iii) permit the Company to purchase revised amounts of SiC materials from third parties under limited conditions. The Company’s total purchase commitment under the Supply Agreement, as amended, until June 2025 is approximately $52.95 million, of which approximately $28.35 million remains to be purchased as of March 31, 2022. Over the life of the Supply Agreement, as amended, the Company’s future minimum annual purchase commitments of SiC crystals range from approximately $4.00 million to $10.00 million each year. During the nine months ended March 31, 2022, the Company purchased approximately $4.49 million of SiC crystals from Wolfspeed pursuant to the terms of the Supply Agreement, as amended. During the nine months ended March 31, 2021, the Company purchased approximately $2.28 million of SiC crystals from Wolfspeed pursuant to the terms of the Supply Agreement, as amended. COVID-19 The evolving COVID-19 pandemic continues to present unprecedented worldwide economic and business challenges in the Company’s fiscal year ending June 30, 2022 (“Fiscal 2022”). The Company’s management has taken measures to protect the health and safety of the Company’s employees, work with its customers and suppliers to minimize disruptions, and support its community in addressing the challenges posed by the ongoing COVID-19 pandemic and its evolving viral variants. The Company has experienced impacts on its business related to the COVID-19 pandemic, primarily in increased coronavirus-related costs, including at times using accelerated payments in some cases to the Company’s suppliers that are due by their terms in future periods. The Company expects to continue accelerating payments to certain suppliers through at least the fourth quarter of Fiscal 2022. The Company is continuing to see a sharp increase in international and domestic freight costs, with limited availability and long delays causing disruption in the global supply chain. Accordingly, the Company’s management is taking steps where possible to mitigate such potential delays in supplier deliveries by accelerating orders and increasing order quantities. Following the government mandated shut down during the early days of the pandemic, work in the Company’s production and distribution facilities has continued throughout the pandemic, consistent with guidance from federal, state, and local officials to minimize the spread of COVID-19. The Company’s management continues to take actions to equip its employees with personal protective equipment, establish minimum staffing and social distancing policies, sanitize workspaces, adopt alternate work schedules, and institute other measures aimed to sustain production and related services while minimizing the transmission of COVID-19, including measures to encourage all employees to be fully vaccinated and to provide evidence of vaccination status in line with state and local guidelines. In addition, the Company has maintained a flexible teleworking policy for its employees who can meet customer commitments remotely, and a portion of the Company’s workforce continues teleworking. Although the COVID-19 pandemic did not have a significant adverse impact on the Company’s financial results in the nine months ended March 31, 2022, the ultimate impact of COVID-19 on the Company’s operations and financial performance in future periods, including management’s ability to execute its strategic initiatives in the expected timeframes, remains uncertain and will depend on future pandemic related developments, including the duration of the pandemic, any potential subsequent waves of COVID-19 and its variant viral infections, the effectiveness, distribution and acceptance of COVID-19 vaccines and boosters, and related government actions to prevent and manage disease spread, all of which are uncertain and cannot be predicted. The Company cannot at this time predict the full impact of the COVID-19 pandemic, but the Company’s management believes there is a risk that the COVID-19 pandemic could adversely impact the Company’s future business, financial condition, results of operations and/or cash flows. |
DEBT
DEBT | 9 Months Ended |
Mar. 31, 2022 | |
DEBT [Abstract] | |
DEBT | 10. DEBT Line of Credit Effective July 7, the Company obtained from JPMorgan Chase Bank, N.A. (“JPMorgan Chase”) a cash collateralized line of credit facility (the “JPMorgan Chase Credit Facility”). The JPMorgan Chase Credit Facility may be used for general corporate and working capital purposes, including permitted acquisitions and certain additional indebtedness for obligations under capital and operating leases. JPMorgan Chase Credit Facility, which is scheduled to mature on July 31, 2022, is secured by a cash deposit in the amount of held by JPMorgan Chase as collateral for the . Each advance accrues interest at a rate equal to JPMorgan Chase’s monthly LIBOR rate multiplied by a statutory reserve rate for eurocurrency funding to which JPMorgan Chase is subject with respect to the adjusted LIBOR rate as established by the U.S. Federal Reserve Board, plus a margin of 1.25% per annum. If the JPMorgan Chase monthly LIBOR rate would no longer be appropriate, JPMorgan Chase would select an alternate rate that gives due consideration to the prevailing market convention for determining a rate of interest for loans in U.S. dollars. Interest is calculated monthly on an actual/ day basis and payable monthly in arrears. Principal outstanding during an event of default, at JPMorgan Chase’s option, accrues interest at a rate of 3% per annum in excess of the above rate. Any advance may be prepaid in whole or in part without penalty at any time. As of March 31, 2022, the Company had not borrowed against the JPMorgan Chase Credit Facility. Prior to obtaining the JPMorgan Chase Credit Facility, the Company and its wholly owned subsidiary, charlesandcolvard.com, LLC (collectively, the “Borrowers”), had a $5.00 million asset-based revolving credit facility (the “White Oak Credit Facility”) from White Oak Commercial Finance, LLC (“White Oak”), which was terminated by the Company in accordance with its terms as of July The effective date of the White Oak Credit Facility was July and it was scheduled to mature on July 13, 2021 Available advances could have been in the form of either revolving or non-revolving. During the first year of the term of the White Oak Credit Facility, any revolving advances would have accrued interest at a rate equal to one-month LIBOR (reset monthly, and subject to a floor) plus 3.75%, and any non-revolving advances would have accrued interest at such LIBOR rate plus 4.75%. Thereafter, the interest margins would have been reduced upon the Company’s achievement of a specified fixed charge coverage ratio during the period of any outstanding advances. However, any advances were in all cases subject to a minimum interest rate of 5.50% and interest would have been calculated on an actual/ basis and payable monthly in arrears. Principal outstanding during an event of default, which did not occur during the term of the White Oak would have accrued interest at a rate in excess of the rate that would have been otherwise applicable The Company had not borrowed against the White Oak Credit Facility . Paycheck Protection Program Loan On June 18, 2020, the Company received the proceeds from a loan pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), as administered by the U.S. Small Business Administration (the “SBA”) . The loan in the principal amount of was disbursed by the Lender pursuant to a promissory note issued by the Company (the “Promissory Note”) on June Pursuant to its terms, the Promissory Note was scheduled to mature on June 18, 2022. However, on June in accordance with applicable provisions of the CARES Act the Company filed its PPP Loan forgiveness application with the Lender for forgiveness of the full amount of the PPP Loan proceeds . Effective June the Company’s PPP Loan forgiveness was approved and processed by the SBA for the full principal of the PPP Loan in the amount of . Accordingly, the full amount of the gain in connection with the extinguishment of this debt was recognized in the In accordance with the terms of the Promissory Note, during the period of time the principal of the PPP Loan was outstanding, interest was accrued by the Company at a fixed rate of 1% per annum. In connection with the Company’s PPP Loan forgiveness, the SBA also approved forgiveness of accrued interest amounts that would have been otherwise payable by the Company to the Lender. Accordingly, the benefit from the forgiveness of the inception to-date interest expense in the amount of approximately was recognized and included within the gain on extinguishment of debt in the consolidated statement of operations for the fiscal year ended June The Company had no outstanding debt as of March 31, 2022 |
SHAREHOLDERS' EQUITY AND STOCK-
SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION | 9 Months Ended |
Mar. 31, 2022 | |
SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION [Abstract] | |
STOCK-BASED COMPENSATION | 11. SHAREHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION Stock-Based Compensation The following table summarizes the components of the Company’s stock-based compensation included in net income for the periods presented: Three Months Ended March 31, Nine Months Ended March 31, 2022 2021 2022 2021 Employee stock options $ 60,045 $ 45,312 $ 187,059 $ 186,528 Restricted stock awards 138,478 31,604 489,875 85,681 Totals $ 198,523 $ 76,916 $ 676,934 $ 272,209 No stock-based compensation was capitalized as a cost of inventory during the three and nine months ended March 31, 2022 and 2021. Stock Options The following is a summary of the stock option activity for the nine months ended March 31, 2022: Shares Weighted Average Exercise Price Outstanding, June 30, 2021 2,235,286 $ 1.24 Granted 249,793 $ 2.66 Exercised (532,976 ) $ 1.22 Forfeited (24,753 ) $ 1.04 Expired (169,297 ) $ 3.12 Outstanding, March 31, 2022 1,758,053 $ 1.27 The total fair value of stock options that vested during the nine months ended March 31, 2022 was approximately $188,000. The following table summarizes information about stock options outstanding at March 31, 2022: Options Outstanding Options Exercisable Options Vested or Expected to Vest Balance as of 3/31/2022 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Balance as of 3/31/2022 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Balance as of 3/31/2022 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price 1,758,053 6.53 $ 1.27 1,289,070 5.64 $ 1.08 1,688,085 6.42 $ 1.25 As of March 31, 2022, the unrecognized stock-based compensation expense related to unvested stock options was approximately $334,000, which is expected to be recognized over a weighted average period of approximately 24 months. The aggregate intrinsic value of stock options outstanding, exercisable, and vested or expected to vest at March 31, 2022 was approximately $973,000. These amounts are before applicable income taxes and represent the closing market price of the Company’s common stock at March 31, 2022 less the grant price, multiplied by the number of stock options that had a grant price that is less than the closing market price. These values represent the amount that would have been received by the optionees had these stock options been exercised on that date. During the nine months ended March 31, 2022 and 2021, the aggregate intrinsic value of stock options exercised was approximately $829,000 and $1.2 million, respectively. During the nine months ended March 31, 2022 and 2021, the total estimated tax benefit associated with certain stock options that were exercised was approximately $93,000 and $0, respectively. Restricted Stock The following is a summary of the restricted stock activity for the nine months ended March 31, 2022: Shares Weighted Average Grant Date Fair Value Unvested, June 30, 2021 178,750 $ 0.72 Granted 242,725 $ 2.75 Vested (242,725 ) $ 1.25 Unvested, March 31, 2022 178,750 $ 2.75 The unvested restricted shares as of March 31, 2022 are all performance-based restricted shares that are scheduled to vest, subject to achievement of the underlying performance goals, in July 2022. As of March 31, 2022, the estimated unrecognized stock-based compensation expense related to unvested restricted shares subject to achievement of performance goals was approximately $188,000, all of which is expected to be recognized over a weighted average period of approximately four months . |
SHAREHOLDERS' EQUITY | Dividends The Company has paid no cash dividends during the current fiscal year through March 31, 2022. |
NET INCOME PER COMMON SHARE
NET INCOME PER COMMON SHARE | 9 Months Ended |
Mar. 31, 2022 | |
NET INCOME PER COMMON SHARE [Abstract] | |
NET INCOME PER COMMON SHARE | 12. NET INCOME PER COMMON SHARE Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the periods. Diluted net income per common share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the periods. Common equivalent shares consist of stock options and unvested restricted shares that are computed using the treasury stock method. Anti-dilutive stock awards consist of stock options that would have been anti-dilutive in the application of the treasury stock method. The following table reconciles the differences between the basic and diluted net income per share presentations: Three Months Ended March 31, Nine Months Ended March 31, 2022 2021 2022 2021 Numerator: Net income $ 338,508 $ 1,036,227 $ 2,333,145 $ 4,429,570 Denominator: Weighted average common shares outstanding: Basic 30,484,897 29,320,434 30,286,195 28,967,946 Effect of dilutive securities 783,513 1,205,004 985,482 699,783 Diluted 31,268,410 30,525,438 31,271,677 29,667,729 Net income per common share: Basic $ 0.01 $ 0.04 $ 0.08 $ 0.15 Diluted $ 0.01 $ 0.03 $ 0.07 $ 0.15 For the three and nine months ended March 31, 2022 stock options to purchase approximately 975,000 and 773,000 shares, respectively, and for the three and nine months ended March 31, 2021, stock options to purchase approximately 1.09 million shares and 1.60 million shares, respectively, |
MAJOR CUSTOMERS AND CONCENTRATI
MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK | 9 Months Ended |
Mar. 31, 2022 | |
MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK [Abstract] | |
MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK | 13. MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash on deposit and cash equivalents held with banks and trade accounts receivable. The Company places cash deposits with federally insured financial institutions and maintains its cash at banks and financial institutions it considers to be of high credit quality. However, the Company’s cash deposits may at times exceed the Federal Deposit Insurance Corporation’s insurable limits. Accordingly, balances in excess of federally insured limitations may not be insured. The Company has not experienced losses on these accounts, and management believes that the Company is not exposed to significant risks on such accounts. Trade receivables potentially subject the Company to credit risk. Payment terms on trade receivables for the Company’s Traditional segment customers are generally between 30 and 90 days, though it may offer extended terms with specific customers and on significant orders from time to time. The Company extends credit to its customers based upon a number of factors, including an evaluation of the customer’s financial condition and credit history that is verified through trade association reference services, the customer’s payment history with the Company, the customer’s reputation in the trade, and/or an evaluation of the Company’s opportunity to introduce its moissanite jewels or finished jewelry featuring moissanite to new or expanded markets. Collateral is not generally required from customers. The need for an allowance for doubtful accounts is determined based upon factors surrounding the credit risk of specific customers, historical trends, and other information. At times, a portion of the Company’s accounts receivable will be due from customers that have individual balances of 10% or more of the Company’s total gross accounts receivable. The following is a summary of customers that represent 10% or more of total gross accounts receivable as of the dates presented: March 31, 2022 June 30, 2021 Customer A 36 % 30 % Customer B 11 % 14 % Customer C * % 22 % * Customer C did not have individual balances that represented 10% or more of total gross accounts receivable as of March 31, 2022. A significant portion of sales is derived from certain customer relationships. The following is a summary of customers that represent greater than or equal to 10% of total net sales for the periods presented: Three Months Ended March 31, Nine Months Ended March 31, 2022 2021 2022 2021 Customer A 13 % 15 % 14 % 13 % Customer C * % 13 % * % 11 % * Customer C did not have net sales that represented 10% or more of total net sales for the three and nine months ended March 31, 2022. |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 9 Months Ended |
Mar. 31, 2022 | |
SUBSEQUENT EVENT [Abstract] | |
SUBSEQUENT EVENT | 14. SUBSEQUENT EVENT Pursuant to authority granted by the Company’s Board of Directors on April 29, 2022, the Company can repurchase up to approximately $5.00 million in shares outstanding of the Company’s common stock over the three-year period ending April 29, 2025. Pursuant to the terms of the repurchase authorization, the common stock share repurchases are generally at the discretion of the Company’s management. At May 5, 2022, no shares of Company’s common stock had been purchased pursuant to the repurchase authorization. |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Mar. 31, 2022 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. However, certain information or footnote disclosures normally included in complete financial statements prepared in accordance with U.S. GAAP have been condensed, or omitted, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of the Company’s management, the unaudited condensed consolidated financial statements in this Quarterly Report on Form 10-Q include all normal and recurring adjustments necessary for the fair statement of the results for the interim periods presented. The results for the nine months ended March 31, 2022 are not necessarily indicative of the results to be expected for the fiscal year ending June 30, 2022. The condensed consolidated financial statements as of March 31, 2022 and for the three and nine months ended March 31, 2022 and 2021 included in this Quarterly Report on Form 10-Q are unaudited. The balance sheet as of June 30, 2021 is derived from the audited financial statements as of that date. The accompanying statements should be read in conjunction with the audited financial statements and related notes contained in Item 8 of the Company’s Annual Report on Form 10-K (the “2021 Annual Report”) for the fiscal year ended June 30, 2021 filed with the SEC on September 3, 2021. |
Principles of Consolidation | The accompanying condensed consolidated financial statements as of March 31, 2022, for the three and nine months ended March 31, 2022 and 2021, and as of June 30, 2021, include the accounts of the Company and its wholly owned subsidiaries charlesandcolvard.com, LLC, including its wholly-owned subsidiary, moissaniteoulet.com, LLC, which was formed and incorporated as of February 24, 2022 |
Use of Estimates | Use of Estimates |
Cash and Cash Equivalents | Cash and Cash Equivalents – |
Restricted Cash | Restricted Cash – In accordance with cash management process requirements related to the Company’s asset-based revolving credit facility from White Oak Commercial Finance, LLC (“White Oak”), which the Company had in place prior to obtaining the JPMorgan Chase Credit Facility, there were access and usage restrictions on certain cash deposit balances for periods of up to two The reconciliation of cash, cash equivalents, and restricted cash, as presented on the Condensed Consolidated Statements of Cash Flows, consist of the following as of the dates presented: March 31, 2022 June 30, 2021 Cash and cash equivalents $ 16,861,685 $ 21,302,317 Restricted cash 5,050,000 144,634 Total cash, cash equivalents, and restricted cash $ 21,911,685 $ 21,446,951 |
Recently Adopted/Issued Accounting Pronouncements | Recently Adopted/Issued Accounting Pronouncements – In March 2020, and as updated in January 2021, in response to concerns about structural risks of interbank offered rates (“IBORs”), and, particularly, the risk of cessation of the London Interbank Offered Rate (“LIBOR”), the FASB issued new guidance to ease the burden in accounting for or recognizing the effects of reference interest rate reform on financial reporting. The new guidance is effective as of March 12, 2020 through December 31, 2022. As described in more detail in Note 10, “Debt”, borrowings under the Company’s new line of credit are based on a rate equal to the one-month LIBOR. As of March 31, 2022, the Company had not borrowed against its line of credit, and therefore, is not subject to recognizing or disclosing any effect of reference rate reform as of March 31, 2022. |
BASIS OF PRESENTATION AND SIG_3
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | The reconciliation of cash, cash equivalents, and restricted cash, as presented on the Condensed Consolidated Statements of Cash Flows, consist of the following as of the dates presented: March 31, 2022 June 30, 2021 Cash and cash equivalents $ 16,861,685 $ 21,302,317 Restricted cash 5,050,000 144,634 Total cash, cash equivalents, and restricted cash $ 21,911,685 $ 21,446,951 |
SEGMENT INFORMATION AND GEOGR_2
SEGMENT INFORMATION AND GEOGRAPHIC DATA (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
SEGMENT INFORMATION AND GEOGRAPHIC DATA [Abstract] | |
Summary Financial Information by Reportable Segment | Summary financial information by reportable segment is as follows: Three Months Ended March 31, 2022 Online Channels Traditional Total Net sales Finished jewelry $ 5,720,197 $ 1,700,394 $ 7,420,591 Loose jewels 634,617 1,696,627 2,331,244 Total $ 6,354,814 $ 3,397,021 $ 9,751,835 Product line cost of goods sold Finished jewelry $ 2,560,952 $ 1,148,912 $ 3,709,864 Loose jewels 229,714 784,272 1,013,986 Total $ 2,790,666 $ 1,933,184 $ 4,723,850 Product line gross profit Finished jewelry $ 3,159,245 $ 551,482 $ 3,710,727 Loose jewels 404,903 912,355 1,317,258 Total $ 3,564,148 $ 1,463,837 $ 5,027,985 Operating income $ 350,276 $ 65,592 $ 415,868 Depreciation and amortization $ 52,613 $ 59,374 $ 111,987 Capital expenditures $ 28,145 $ 446,445 $ 474,590 Three Months Ended March 31, 2021 Online Channels Traditional Total Net sales Finished jewelry $ 4,902,964 $ 1,316,928 $ 6,219,892 Loose jewels 680,804 2,535,360 3,216,164 Total $ 5,583,768 $ 3,852,288 $ 9,436,056 Product line cost of goods sold Finished jewelry $ 2,045,519 $ 1,006,417 $ 3,051,936 Loose jewels 246,302 1,222,036 1,468,338 Total $ 2,291,821 $ 2,228,453 $ 4,520,274 Product line gross profit Finished jewelry $ 2,857,445 $ 310,511 $ 3,167,956 Loose jewels 434,502 1,313,324 1,747,826 Total $ 3,291,947 $ 1,623,835 $ 4,915,782 Operating income $ 751,953 $ 286,618 $ 1,038,571 Depreciation and amortization $ 67,373 $ 81,077 $ 148,450 Capital expenditures $ 22,770 $ 55,858 $ 78,628 Nine Months Ended March 31, 2022 Online Channels Traditional Total Net sales Finished jewelry $ 18,659,690 $ 4,986,354 $ 23,646,044 Loose jewels 2,388,584 7,750,653 10,139,237 Total $ 21,048,274 $ 12,737,007 $ 33,785,281 Product line cost of goods sold Finished jewelry $ 7,705,127 $ 3,043,196 $ 10,748,323 Loose jewels 877,604 3,630,393 4,507,997 Total $ 8,582,731 $ 6,673,589 $ 15,256,320 Product line gross profit Finished jewelry $ 10,954,563 $ 1,943,158 $ 12,897,721 Loose jewels 1,510,980 4,120,260 5,631,240 Total $ 12,465,543 $ 6,063,418 $ 18,528,961 Operating income $ 2,104,674 $ 711,123 $ 2,815,797 Depreciation and amortization $ 173,786 $ 176,412 $ 350,198 Capital expenditures $ 114,445 $ 1,135,851 $ 1,250,296 Nine Months Ended March 31, 2021 Online Channels Traditional Total Net sales Finished jewelry $ 15,114,765 $ 3,705,663 $ 18,820,428 Loose jewels 2,520,576 8,168,136 10,688,712 Total $ 17,635,341 $ 11,873,799 $ 29,509,140 Product line cost of goods sold Finished jewelry $ 6,242,635 $ 2,565,737 $ 8,808,372 Loose jewels 947,417 4,070,446 5,017,863 Total $ 7,190,052 $ 6,636,183 $ 13,826,235 Product line gross profit Finished jewelry $ 8,872,130 $ 1,139,926 $ 10,012,056 Loose jewels 1,573,159 4,097,690 5,670,849 Total $ 10,445,289 $ 5,237,616 $ 15,682,905 Operating income $ 3,021,067 $ 1,412,758 $ 4,433,825 Depreciation and amortization $ 180,946 $ 238,565 $ 419,511 Capital expenditures $ 195,695 $ 150,417 $ 346,112 |
Reconciliation of Product Line Cost of Goods Sold | A reconciliation of the Company’s product line cost of goods sold to cost of goods sold as reported in the condensed consolidated financial statements is as follows: Three Months Ended March 31, Nine Months Ended March 31, 2022 2021 2022 2021 Product line cost of goods sold $ 4,723,850 $ 4,520,274 $ 15,256,320 $ 13,826,235 Non-capitalized manufacturing and production control expenses 484,299 398,073 1,243,528 1,122,715 Freight out 294,143 191,700 976,855 683,580 Inventory write-off - 23,000 232,000 128,000 Other inventory adjustments (205,762 ) (39,595 ) (361,677 ) (303,315 ) Cost of goods sold $ 5,296,530 $ 5,093,452 $ 17,347,026 $ 15,457,215 |
Net Sales by Geographic Area | The following presents net sales by geographic area: Three Months Ended March 31, Nine Months Ended March 31, 2022 2021 2022 2021 Net sales United States $ 9,390,774 $ 8,969,267 $ 32,237,221 $ 27,857,667 International 361,061 466,789 1,548,060 1,651,473 Total $ 9,751,835 $ 9,436,056 $ 33,785,281 $ 29,509,140 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
INVENTORIES [Abstract] | |
Inventories | The Company’s total inventories, net of reserves, consisted of the following as of the dates presented: March 31, 2022 June 30, 2021 Finished jewelry: Raw materials $ 1,469,003 $ 1,476,514 Work-in-process 1,279,987 779,593 Finished goods 11,386,771 8,025,816 Finished goods on consignment 2,258,071 2,050,372 Total finished jewelry $ 16,393,832 $ 12,332,295 Loose jewels: Raw materials $ 1,692,819 $ 1,775,505 Work-in-process 8,285,457 9,893,443 Finished goods 5,714,303 4,942,192 Finished goods on consignment 328,167 154,968 Total loose jewels 16,020,746 16,766,108 Total supplies inventory 88,846 74,317 Total inventory $ 32,503,424 $ 29,172,720 As of the dates presented, the Company’s total inventories, net of reserves, are classified as follows: March 31, 2022 June 30, 2021 Short-term portion $ 13,440,016 $ 11,450,141 Long-term portion 19,063,408 17,722,579 Total $ 32,503,424 $ 29,172,720 |
ACCRUED EXPENSES AND OTHER LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
ACCRUED EXPENSES AND OTHER LIABILITIES [Abstract] | |
Accrued Expenses and Other Liabilities | Accrued expenses and other liabilities consist of the following as of the dates presented: March 31, 2022 June 30, 2021 Accrued sales tax $ 811,366 $ 555,547 Accrued compensation and related benefits 631,117 866,705 Deferred revenue 505,148 774,891 Accrued cooperative advertising 89,763 68,185 Accrued income taxes 16,478 16,478 Other 1 1 Total accrued expenses and other liabilities $ 2,053,873 $ 2,281,807 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Balance Sheet Classifications of Leases | As of March 31, 2022, the Company’s balance sheet classifications of its leases are as follows: Operating Leases: Noncurrent operating lease ROU assets $ 2,935,124 Current operating lease liabilities $ 850,781 Noncurrent operating lease liabilities 3,039,216 Total operating lease liabilities $ 3,889,997 |
Remaining Future Payments Under Operating Leases | As of March 31, 2022, the Company’s remaining future payments under operating leases for each fiscal year ending June 30 are as follows: 2022 $ 213,521 2023 869,742 2024 893,660 2025 918,236 2026 943,487 2027 317,327 Total lease payments 4,155,973 Less: imputed interest 265,976 Present value of lease payments 3,889,997 Less: current lease liability 850,781 Total long-term lease liability $ 3,039,216 |
SHAREHOLDERS' EQUITY AND STOC_2
SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION [Abstract] | |
Stock-Based Compensation | The following table summarizes the components of the Company’s stock-based compensation included in net income for the periods presented: Three Months Ended March 31, Nine Months Ended March 31, 2022 2021 2022 2021 Employee stock options $ 60,045 $ 45,312 $ 187,059 $ 186,528 Restricted stock awards 138,478 31,604 489,875 85,681 Totals $ 198,523 $ 76,916 $ 676,934 $ 272,209 |
Stock Option Activity | The following is a summary of the stock option activity for the nine months ended March 31, 2022: Shares Weighted Average Exercise Price Outstanding, June 30, 2021 2,235,286 $ 1.24 Granted 249,793 $ 2.66 Exercised (532,976 ) $ 1.22 Forfeited (24,753 ) $ 1.04 Expired (169,297 ) $ 3.12 Outstanding, March 31, 2022 1,758,053 $ 1.27 |
Stock Options Outstanding | The following table summarizes information about stock options outstanding at March 31, 2022: Options Outstanding Options Exercisable Options Vested or Expected to Vest Balance as of 3/31/2022 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Balance as of 3/31/2022 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Balance as of 3/31/2022 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price 1,758,053 6.53 $ 1.27 1,289,070 5.64 $ 1.08 1,688,085 6.42 $ 1.25 |
Restricted Stock Activity | The following is a summary of the restricted stock activity for the nine months ended March 31, 2022: Shares Weighted Average Grant Date Fair Value Unvested, June 30, 2021 178,750 $ 0.72 Granted 242,725 $ 2.75 Vested (242,725 ) $ 1.25 Unvested, March 31, 2022 178,750 $ 2.75 |
NET INCOME PER COMMON SHARE (Ta
NET INCOME PER COMMON SHARE (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
NET INCOME PER COMMON SHARE [Abstract] | |
Basic and Diluted Net Income per Share | The following table reconciles the differences between the basic and diluted net income per share presentations: Three Months Ended March 31, Nine Months Ended March 31, 2022 2021 2022 2021 Numerator: Net income $ 338,508 $ 1,036,227 $ 2,333,145 $ 4,429,570 Denominator: Weighted average common shares outstanding: Basic 30,484,897 29,320,434 30,286,195 28,967,946 Effect of dilutive securities 783,513 1,205,004 985,482 699,783 Diluted 31,268,410 30,525,438 31,271,677 29,667,729 Net income per common share: Basic $ 0.01 $ 0.04 $ 0.08 $ 0.15 Diluted $ 0.01 $ 0.03 $ 0.07 $ 0.15 |
MAJOR CUSTOMERS AND CONCENTRA_2
MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK [Abstract] | |
Major Customers | The following is a summary of customers that represent 10% or more of total gross accounts receivable as of the dates presented: March 31, 2022 June 30, 2021 Customer A 36 % 30 % Customer B 11 % 14 % Customer C * % 22 % * Customer C did not have individual balances that represented 10% or more of total gross accounts receivable as of March 31, 2022. A significant portion of sales is derived from certain customer relationships. The following is a summary of customers that represent greater than or equal to 10% of total net sales for the periods presented: Three Months Ended March 31, Nine Months Ended March 31, 2022 2021 2022 2021 Customer A 13 % 15 % 14 % 13 % Customer C * % 13 % * % 11 % * Customer C did not have net sales that represented 10% or more of total net sales for the three and nine months ended March 31, 2022. |
BASIS OF PRESENTATION AND SIG_4
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES, Restricted Cash (Details) - USD ($) | 9 Months Ended | ||||
Mar. 31, 2022 | Jul. 09, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | |
Cash, Cash Equivalents and Restricted Cash [Abstract] | |||||
Cash and cash equivalents | $ 16,861,685 | $ 21,302,317 | |||
Restricted cash | 5,050,000 | 144,634 | |||
Total cash, cash equivalents, and restricted cash | 21,911,685 | $ 21,446,951 | $ 19,675,373 | $ 14,617,234 | |
JPMorgan Chase Credit Facility [Member] | |||||
Restricted Cash [Abstract] | |||||
Borrowing capacity | 5,000,000 | ||||
Cash deposit | $ 5,050,000 | ||||
White Oak Credit Facility [Member] | |||||
Restricted Cash [Abstract] | |||||
Borrowing capacity | $ 5,000,000 | ||||
White Oak Credit Facility [Member] | Maximum [Member] | |||||
Restricted Cash [Abstract] | |||||
Restriction period on access and usage of certain cash deposit balances | 2 days |
BASIS OF PRESENTATION AND SIG_5
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES, Recently Adopted/Issued Accounting Pronouncements (Details) - JPMorgan Chase Credit Facility [Member] | 9 Months Ended |
Mar. 31, 2022USD ($) | |
Recently Adopted/Issued Accounting Pronouncements [Abstract] | |
Borrowings against line of credit | $ 0 |
LIBOR [Member] | |
Recently Adopted/Issued Accounting Pronouncements [Abstract] | |
Term of variable rate | 1 month |
SEGMENT INFORMATION AND GEOGR_3
SEGMENT INFORMATION AND GEOGRAPHIC DATA, Summary Financial Information by Reportable Segment (Details) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2022USD ($)Segment | Mar. 31, 2021USD ($) | |
SEGMENT INFORMATION AND GEOGRAPHIC DATA [Abstract] | ||||
Number of operating segments | Segment | 2 | |||
Number of reportable segments | Segment | 2 | |||
Summary Information by Reportable Segment [Abstract] | ||||
Net sales | $ 9,751,835 | $ 9,436,056 | $ 33,785,281 | $ 29,509,140 |
Product line cost of goods sold | 5,296,530 | 5,093,452 | 17,347,026 | 15,457,215 |
Operating income | 415,868 | 1,038,571 | 2,815,797 | 4,433,825 |
Depreciation and amortization | 111,987 | 148,450 | 350,198 | 419,511 |
Capital expenditures | 474,590 | 78,628 | 1,250,296 | 346,112 |
Product Line [Member] | ||||
Summary Information by Reportable Segment [Abstract] | ||||
Product line cost of goods sold | 4,723,850 | 4,520,274 | 15,256,320 | 13,826,235 |
Product line gross profit | 5,027,985 | 4,915,782 | 18,528,961 | 15,682,905 |
Finished Jewelry [Member] | ||||
Summary Information by Reportable Segment [Abstract] | ||||
Net sales | 7,420,591 | 6,219,892 | 23,646,044 | 18,820,428 |
Product line cost of goods sold | 3,709,864 | 3,051,936 | 10,748,323 | 8,808,372 |
Product line gross profit | 3,710,727 | 3,167,956 | 12,897,721 | 10,012,056 |
Loose Jewels [Member] | ||||
Summary Information by Reportable Segment [Abstract] | ||||
Net sales | 2,331,244 | 3,216,164 | 10,139,237 | 10,688,712 |
Product line cost of goods sold | 1,013,986 | 1,468,338 | 4,507,997 | 5,017,863 |
Product line gross profit | 1,317,258 | 1,747,826 | 5,631,240 | 5,670,849 |
Operating and Reportable Segments [Member] | Online Channels [Member] | ||||
Summary Information by Reportable Segment [Abstract] | ||||
Net sales | 6,354,814 | 5,583,768 | 21,048,274 | 17,635,341 |
Product line cost of goods sold | 2,790,666 | 2,291,821 | 8,582,731 | 7,190,052 |
Product line gross profit | 3,564,148 | 3,291,947 | 12,465,543 | 10,445,289 |
Operating income | 350,276 | 751,953 | 2,104,674 | 3,021,067 |
Depreciation and amortization | 52,613 | 67,373 | 173,786 | 180,946 |
Capital expenditures | 28,145 | 22,770 | 114,445 | 195,695 |
Operating and Reportable Segments [Member] | Online Channels [Member] | Finished Jewelry [Member] | ||||
Summary Information by Reportable Segment [Abstract] | ||||
Net sales | 5,720,197 | 4,902,964 | 18,659,690 | 15,114,765 |
Product line cost of goods sold | 2,560,952 | 2,045,519 | 7,705,127 | 6,242,635 |
Product line gross profit | 3,159,245 | 2,857,445 | 10,954,563 | 8,872,130 |
Operating and Reportable Segments [Member] | Online Channels [Member] | Loose Jewels [Member] | ||||
Summary Information by Reportable Segment [Abstract] | ||||
Net sales | 634,617 | 680,804 | 2,388,584 | 2,520,576 |
Product line cost of goods sold | 229,714 | 246,302 | 877,604 | 947,417 |
Product line gross profit | 404,903 | 434,502 | 1,510,980 | 1,573,159 |
Operating and Reportable Segments [Member] | Traditional [Member] | ||||
Summary Information by Reportable Segment [Abstract] | ||||
Net sales | 3,397,021 | 3,852,288 | 12,737,007 | 11,873,799 |
Product line cost of goods sold | 1,933,184 | 2,228,453 | 6,673,589 | 6,636,183 |
Product line gross profit | 1,463,837 | 1,623,835 | 6,063,418 | 5,237,616 |
Operating income | 65,592 | 286,618 | 711,123 | 1,412,758 |
Depreciation and amortization | 59,374 | 81,077 | 176,412 | 238,565 |
Capital expenditures | 446,445 | 55,858 | 1,135,851 | 150,417 |
Operating and Reportable Segments [Member] | Traditional [Member] | Finished Jewelry [Member] | ||||
Summary Information by Reportable Segment [Abstract] | ||||
Net sales | 1,700,394 | 1,316,928 | 4,986,354 | 3,705,663 |
Product line cost of goods sold | 1,148,912 | 1,006,417 | 3,043,196 | 2,565,737 |
Product line gross profit | 551,482 | 310,511 | 1,943,158 | 1,139,926 |
Operating and Reportable Segments [Member] | Traditional [Member] | Loose Jewels [Member] | ||||
Summary Information by Reportable Segment [Abstract] | ||||
Net sales | 1,696,627 | 2,535,360 | 7,750,653 | 8,168,136 |
Product line cost of goods sold | 784,272 | 1,222,036 | 3,630,393 | 4,070,446 |
Product line gross profit | $ 912,355 | $ 1,313,324 | $ 4,120,260 | $ 4,097,690 |
SEGMENT INFORMATION AND GEOGR_4
SEGMENT INFORMATION AND GEOGRAPHIC DATA, Reconciliation of Cost of Goods Sold (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Reconciliation of Cost of Goods Sold [Abstract] | ||||
Cost of goods sold | $ 5,296,530 | $ 5,093,452 | $ 17,347,026 | $ 15,457,215 |
Inventory write-off | 232,000 | 128,000 | ||
Product Line [Member] | ||||
Reconciliation of Cost of Goods Sold [Abstract] | ||||
Cost of goods sold | 4,723,850 | 4,520,274 | 15,256,320 | 13,826,235 |
Segment Reconciling Item [Member] | ||||
Reconciliation of Cost of Goods Sold [Abstract] | ||||
Non-capitalized manufacturing and production control expenses | 484,299 | 398,073 | 1,243,528 | 1,122,715 |
Freight out | 294,143 | 191,700 | 976,855 | 683,580 |
Inventory write-off | 0 | 23,000 | 232,000 | 128,000 |
Other inventory adjustments | $ (205,762) | $ (39,595) | $ (361,677) | $ (303,315) |
SEGMENT INFORMATION AND GEOGR_5
SEGMENT INFORMATION AND GEOGRAPHIC DATA, Net Sales by Geographic Area (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Net Sales by Geographic Area [Abstract] | ||||
Net sales | $ 9,751,835 | $ 9,436,056 | $ 33,785,281 | $ 29,509,140 |
Reportable Geographical Component [Member] | United States [Member] | ||||
Net Sales by Geographic Area [Abstract] | ||||
Net sales | 9,390,774 | 8,969,267 | 32,237,221 | 27,857,667 |
Reportable Geographical Component [Member] | International [Member] | ||||
Net Sales by Geographic Area [Abstract] | ||||
Net sales | $ 361,061 | $ 466,789 | $ 1,548,060 | $ 1,651,473 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
FAIR VALUE MEASUREMENTS [Abstract] | ||||
Asset impairment | $ 0 | $ 0 | $ 0 | $ 0 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | 9 Months Ended | |
Mar. 31, 2022 | Jun. 30, 2021 | |
Inventories [Abstract] | ||
Total supplies inventory | $ 88,846 | $ 74,317 |
Total inventory | 32,503,424 | 29,172,720 |
Short-term portion | 13,440,016 | 11,450,141 |
Long-term portion | 19,063,408 | 17,722,579 |
Work-in-process inventories issued to active production jobs | $ 2,440,000 | 2,230,000 |
Percentage of jewel inventory not mounted in finished jewelry settings | 50.00% | |
Finished Jewelry [Member] | ||
Inventories [Abstract] | ||
Raw materials | $ 1,469,003 | 1,476,514 |
Work-in-process | 1,279,987 | 779,593 |
Finished goods | 11,386,771 | 8,025,816 |
Finished goods on consignment | 2,258,071 | 2,050,372 |
Total | 16,393,832 | 12,332,295 |
Loose Jewels [Member] | ||
Inventories [Abstract] | ||
Raw materials | 1,692,819 | 1,775,505 |
Work-in-process | 8,285,457 | 9,893,443 |
Finished goods | 5,714,303 | 4,942,192 |
Finished goods on consignment | 328,167 | 154,968 |
Total | $ 16,020,746 | $ 16,766,108 |
NOTE RECEIVABLE (Details)
NOTE RECEIVABLE (Details) - Convertible Promissory Note [Member] - USD ($) | Mar. 31, 2022 | Mar. 05, 2021 |
Note Receivable [Abstract] | ||
Note receivable | $ 250,000 | |
Interest rate | 0.14% | |
Interest rate during event of default | 5.00% | |
Percentage of per unit price of units purchased by investors | 80.00% | |
Value used to compute equity securities received upon conversion | $ 33,500,000 |
ACCRUED EXPENSES AND OTHER LI_3
ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
ACCRUED EXPENSES AND OTHER LIABILITIES [Abstract] | ||
Accrued sales tax | $ 811,366 | $ 555,547 |
Accrued compensation and related benefits | 631,117 | 866,705 |
Deferred revenue | 505,148 | 774,891 |
Accrued cooperative advertising | 89,763 | 68,185 |
Accrued income taxes | 16,478 | 16,478 |
Other | 1 | 1 |
Total accrued expenses and other liabilities | $ 2,053,873 | $ 2,281,807 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | |
INCOME TAXES [Abstract] | |||||
Combined federal and state statutory tax rate | 22.24% | 22.11% | 22.24% | 22.11% | |
Federal income tax rate | 21.00% | 21.00% | 21.00% | 21.00% | |
State income tax rate | 1.24% | 1.11% | 1.24% | 1.11% | |
Effective tax rate | 17.20% | ||||
Deferred tax assets | $ 5,867,662 | $ 5,867,662 | $ 6,350,830 | ||
Income tax expense | 78,480 | $ 472 | 484,582 | $ 1,460 | |
Deferred income tax expense | 78,000 | 483,168 | 0 | ||
Income tax expense (benefit) for estimated tax, penalties, and interest for other uncertain tax positions | $ 500 | $ 500 | $ 1,500 | $ 1,500 |
COMMITMENTS AND CONTINGENCIES,
COMMITMENTS AND CONTINGENCIES, Lease Arrangements (Details) | Jan. 29, 2021USD ($) | Mar. 31, 2022USD ($)ft² | Mar. 31, 2021USD ($) | Mar. 31, 2022USD ($)ft² | Mar. 31, 2021USD ($) | Jun. 30, 2021USD ($) |
COMMITMENTS AND CONTINGENCIES [Abstract] | ||||||
Area leased under operating lease | ft² | 36,350 | 36,350 | ||||
Period of extension on option | 5 years | 5 years | ||||
Minimum notice period for extension of lease term | 270 days | |||||
Rent abatement | $ 214,000 | |||||
Allowance for leasehold improvements | $ 545,000 | |||||
Reimbursement for leasehold improvements | $ 506,054 | |||||
Balance Sheet Classifications of Leases [Abstract] | ||||||
Noncurrent operating lease ROU assets | 2,935,124 | $ 2,935,124 | $ 3,952,146 | |||
Operating Lease Liabilities [Abstract] | ||||||
Current operating lease liabilities | 850,781 | 850,781 | 566,083 | |||
Noncurrent operating lease liabilities | 3,039,216 | 3,039,216 | 3,600,842 | |||
Total operating lease liabilities | 3,889,997 | 3,889,997 | ||||
Operating lease cost | 193,000 | $ 192,000 | 596,000 | $ 473,000 | ||
Assumed discount rate | 2.81% | 2.81% | ||||
Remaining operating lease term | 4 years 6 months 29 days | 4 years 6 months 29 days | ||||
Future Lease Payments Under Operating Leases [Abstract] | ||||||
2022 | 213,521 | 213,521 | ||||
2023 | 869,742 | 869,742 | ||||
2024 | 893,660 | 893,660 | ||||
2025 | 918,236 | 918,236 | ||||
2026 | 943,487 | 943,487 | ||||
2027 | 317,327 | 317,327 | ||||
Total lease payments | 4,155,973 | 4,155,973 | ||||
Less: imputed interest | 265,976 | 265,976 | ||||
Total operating lease liabilities | 3,889,997 | 3,889,997 | ||||
Less: current lease liability | 850,781 | 850,781 | 566,083 | |||
Total long-term lease liability | 3,039,216 | 3,039,216 | 3,600,842 | |||
Cash paid for operating leases | $ 160,000 | $ 160,000 | 330,000 | $ 481,000 | ||
ROU assets obtained in exchange for new operating lease liabilities | $ 0 | $ 3,908,249 | $ 3,900,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES, Purchase Commitments (Details) - SiC Materials [Member] $ in Thousands | 9 Months Ended | |
Mar. 31, 2022USD ($)Option | Mar. 31, 2021USD ($) | |
Purchase Commitments [Abstract] | ||
Percentage of materials committed to be purchased | 100.00% | |
Number of options to extend term of exclusive supply agreement | Option | 1 | |
Extension period of exclusive supply agreement | 2 years | |
Total purchase commitment | $ 52,950 | |
Remaining purchase commitment | 28,350 | |
Purchases | 4,490 | $ 2,280 |
Minimum [Member] | ||
Purchase Commitments [Abstract] | ||
Future minimum annual purchase commitments | 4,000 | |
Maximum [Member] | ||
Purchase Commitments [Abstract] | ||
Future minimum annual purchase commitments | $ 10,000 |
DEBT, JPMorgan Chase Credit Fac
DEBT, JPMorgan Chase Credit Facility (Details) - JPMorgan Chase Credit Facility [Member] $ in Thousands | 9 Months Ended |
Mar. 31, 2022USD ($) | |
Line of Credit [Abstract] | |
Borrowing capacity | $ 5,000 |
Cash deposit | $ 5,050 |
Interest rate premium in excess of rate otherwise applicable charged during an event of default | 3.00% |
Credit facility outstanding | $ 0 |
LIBOR [Member] | |
Line of Credit [Abstract] | |
Basis spread on variable rate | 1.25% |
DEBT, White Oak Credit Facility
DEBT, White Oak Credit Facility (Details) - USD ($) $ in Thousands | Jul. 09, 2021 | Mar. 31, 2022 |
White Oak Credit Facility [Member] | ||
Line of Credit [Abstract] | ||
Borrowing capacity | $ 5,000 | |
Interest rate premium in excess of rate otherwise applicable charged during an event of default | 2.00% | |
Credit facility outstanding | $ 0 | |
White Oak Credit Facility [Member] | Minimum [Member] | ||
Line of Credit [Abstract] | ||
Interest rate | 5.50% | |
Revolving Advances [Member] | ||
Line of Credit [Abstract] | ||
Interest rate floor | 1.25% | |
Revolving Advances [Member] | LIBOR [Member] | ||
Line of Credit [Abstract] | ||
Term of variable rate | 1 month | |
Basis spread on variable rate | 3.75% | |
Non-Revolving Advances [Member] | LIBOR [Member] | ||
Line of Credit [Abstract] | ||
Basis spread on variable rate | 4.75% |
DEBT, Paycheck Protection Progr
DEBT, Paycheck Protection Program Loan (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Mar. 31, 2022 | Jun. 18, 2020 | |
Paycheck Protection Program Loan [Abstract] | |||
Long-term debt | $ 0 | ||
PPP Loan [Member] | |||
Paycheck Protection Program Loan [Abstract] | |||
Principal amount | $ 965,000 | ||
Forgiveness of loan principal amount | $ 965,000 | ||
Fixed interest rate | 1.00% | ||
PPP Loan [Member] | Gain on Extinguishment of Debt [Member] | |||
Paycheck Protection Program Loan [Abstract] | |||
Forgiveness of inception-to-date interest expense | $ 9,000 |
SHAREHOLDERS' EQUITY AND STOC_3
SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION, Dividends (Details) | 9 Months Ended |
Mar. 31, 2022USD ($) | |
Dividends [Abstract] | |
Cash dividends | $ 0 |
SHAREHOLDERS' EQUITY AND STOC_4
SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION, Stock-Based Compensation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Stock-Based Compensation [Abstract] | ||||
Employee stock options | $ 60,045 | $ 45,312 | $ 187,059 | $ 186,528 |
Restricted stock awards | 138,478 | 31,604 | 489,875 | 85,681 |
Totals | 198,523 | 76,916 | 676,934 | 272,209 |
Stock-based compensation capitalized as a cost of inventory | $ 0 | $ 0 | $ 0 | $ 0 |
SHAREHOLDERS' EQUITY AND STOC_5
SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION, Stock Option Activity (Details) - Stock Options [Member] $ / shares in Units, $ in Thousands | 9 Months Ended |
Mar. 31, 2022USD ($)$ / sharesshares | |
Stock Option Activity [Roll Forward] | |
Outstanding, beginning balance (in shares) | shares | 2,235,286 |
Granted (in shares) | shares | 249,793 |
Exercised (in shares) | shares | (532,976) |
Forfeited (in shares) | shares | (24,753) |
Expired (in shares) | shares | (169,297) |
Outstanding, ending balance (in shares) | shares | 1,758,053 |
Weighted Average Exercise Price [Roll Forward] | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 1.24 |
Granted (in dollars per share) | $ / shares | 2.66 |
Exercised (in dollars per share) | $ / shares | 1.22 |
Forfeited (in dollars per share) | $ / shares | 1.04 |
Expired (in dollars per share) | $ / shares | 3.12 |
Outstanding, ending balance (in dollars per share) | $ / shares | $ 1.27 |
Fair Value of Stock Options [Abstract] | |
Fair value of stock options vested | $ | $ 188 |
SHAREHOLDERS' EQUITY AND STOC_6
SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION, Stock Options Outstanding (Details) - Stock Options [Member] - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | |
Stock Options Outstanding and Exercisable [Abstract] | |||
Options outstanding, balance as of end of period (in shares) | 1,758,053 | 2,235,286 | |
Options outstanding, weighted average remaining contractual life | 6 years 6 months 10 days | ||
Options outstanding, weighted average exercise price (in dollars per share) | $ 1.27 | $ 1.24 | |
Options exercisable, balance as of end of period (in shares) | 1,289,070 | ||
Options exercisable, weighted average remaining contractual life | 5 years 7 months 20 days | ||
Options exercisable, weighted average exercise price (in dollars per share) | $ 1.08 | ||
Options Vested or Expected to Vest [Abstract] | |||
Options vested or expected to vest, balance as of end of period (in shares) | 1,688,085 | ||
Options vested or expected to vest, weighted average remaining contractual life | 6 years 5 months 1 day | ||
Options vested or expected to vest, weighted average exercise price (in dollars per share) | $ 1.25 | ||
Unrecognized Stock-Based Compensation Expense [Abstract] | |||
Unrecognized stock-based compensation expense | $ 334 | ||
Unrecognized stock-based compensation expense, period for recognition | 24 months | ||
Options outstanding, aggregate intrinsic value | $ 973 | ||
Options exercisable, aggregate intrinsic value | 973 | ||
Options vested or expected to vest, aggregate intrinsic value | 973 | ||
Options exercised, aggregate intrinsic value | 829 | $ 1,200 | |
Tax benefit associated with stock options exercised | $ 93 | $ 0 |
SHAREHOLDERS' EQUITY AND STOC_7
SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION, Restricted Stock Activity (Details) - Restricted Stock [Member] $ / shares in Units, $ in Thousands | 9 Months Ended |
Mar. 31, 2022USD ($)$ / sharesshares | |
Restricted Stock Activity [Roll Forward] | |
Unvested, beginning balance (in shares) | shares | 178,750 |
Granted (in shares) | shares | 242,725 |
Vested (in shares) | shares | (242,725) |
Unvested, ending balance (in shares) | shares | 178,750 |
Weighted Average Grant Date Fair Value [Roll Forward] | |
Unvested, beginning balance (in dollars per share) | $ / shares | $ 0.72 |
Granted (in dollars per share) | $ / shares | 2.75 |
Vested (in dollars per share) | $ / shares | 1.25 |
Unvested, ending balance (in dollars per share) | $ / shares | $ 2.75 |
Unrecognized Stock-Based Compensation Expense [Abstract] | |
Unrecognized stock-based compensation expense | $ | $ 188 |
Unrecognized stock-based compensation expense, period for recognition | 4 months |
NET INCOME PER COMMON SHARE (De
NET INCOME PER COMMON SHARE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator [Abstract] | ||||||||
Net income | $ 338,508 | $ 1,167,612 | $ 827,025 | $ 1,036,227 | $ 2,519,077 | $ 874,266 | $ 2,333,145 | $ 4,429,570 |
Denominator [Abstract] | ||||||||
Weighted average common shares outstanding, Basic (in shares) | 30,484,897 | 29,320,434 | 30,286,195 | 28,967,946 | ||||
Effect of dilutive securities (in shares) | 783,513 | 1,205,004 | 985,482 | 699,783 | ||||
Weighted average common shares outstanding, Diluted (in shares) | 31,268,410 | 30,525,438 | 31,271,677 | 29,667,729 | ||||
Net income per common share: [Abstract] | ||||||||
Basic (in dollars per share) | $ 0.01 | $ 0.04 | $ 0.08 | $ 0.15 | ||||
Diluted (in dollars per share) | $ 0.01 | $ 0.03 | $ 0.07 | $ 0.15 | ||||
Stock Options [Member] | ||||||||
Net Income per Common Share [Abstract] | ||||||||
Shares excluded from the computation of diluted net income per common share (in shares) | 975,000 | 1,090,000 | 773,000 | 1,600,000 | ||||
Restricted Stock [Member] | ||||||||
Net Income per Common Share [Abstract] | ||||||||
Shares excluded from the computation of diluted net income per common share (in shares) | 179,000 | 179,000 | 179,000 | 179,000 |
MAJOR CUSTOMERS AND CONCENTRA_3
MAJOR CUSTOMERS AND CONCENTRATION OF CREDIT RISK (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | |||
Minimum [Member] | |||||||
Major Customers and Concentration of Credit Risk [Abstract] | |||||||
Payment terms on trade receivables | 30 days | ||||||
Maximum [Member] | |||||||
Major Customers and Concentration of Credit Risk [Abstract] | |||||||
Payment terms on trade receivables | 90 days | ||||||
Trade Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer A [Member] | |||||||
Major Customers and Concentration of Credit Risk [Abstract] | |||||||
Concentration risk, percentage | 36.00% | 30.00% | |||||
Trade Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer B [Member] | |||||||
Major Customers and Concentration of Credit Risk [Abstract] | |||||||
Concentration risk, percentage | 11.00% | 14.00% | |||||
Trade Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer C [Member] | |||||||
Major Customers and Concentration of Credit Risk [Abstract] | |||||||
Concentration risk, percentage | [1] | 22.00% | |||||
Total Net Sales [Member] | Customer Concentration Risk [Member] | Customer A [Member] | |||||||
Major Customers and Concentration of Credit Risk [Abstract] | |||||||
Concentration risk, percentage | 13.00% | 15.00% | 14.00% | 13.00% | |||
Total Net Sales [Member] | Customer Concentration Risk [Member] | Customer C [Member] | |||||||
Major Customers and Concentration of Credit Risk [Abstract] | |||||||
Concentration risk, percentage | [2] | 13.00% | [2] | 11.00% | |||
[1] | Customer C did not have individual balances that represented 10% or more of total gross accounts receivable as of March 31, 2022. | ||||||
[2] | Customer C did not have net sales that represented 10% or more of total net sales for the three and nine months ended March 31, 2022. |
SUBSEQUENT EVENT (Details)
SUBSEQUENT EVENT (Details) - Subsequent Event [Member] - USD ($) $ in Thousands | May 05, 2022 | Apr. 29, 2022 |
Subsequent Event [Abstract] | ||
Period over which common stock can be repurchased | 3 years | |
Number of shares repurchased (in shares) | 0 | |
Maximum [Member] | ||
Subsequent Event [Abstract] | ||
Authorized amount of common stock that can be repurchased | $ 5,000 |