Cover
Cover - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Aug. 15, 2023 | Dec. 31, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Jun. 30, 2023 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2023 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity File Number | 001-34839 | ||
Entity Registrant Name | Electromed, Inc. | ||
Entity Central Index Key | 0001488917 | ||
Entity Tax Identification Number | 41-1732920 | ||
Entity Incorporation, State or Country Code | MN | ||
Entity Address, Address Line One | 500 Sixth Avenue NW | ||
Entity Address, City or Town | New Prague | ||
Entity Address, State or Province | MN | ||
Entity Address, Postal Zip Code | 56071 | ||
City Area Code | 952 | ||
Local Phone Number | 758-9299 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | ELMD | ||
Security Exchange Name | NYSEAMER | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 Public Float | $ 80,606,901 | ||
Entity Common Stock, Shares Outstanding | 8,555,238 | ||
Document Financial Statement Error Correction [Flag] | false | ||
Auditor Name | RSM US | ||
Auditor Location | Rochester, MN | ||
Auditor Firm ID | 49 |
Balance Sheets
Balance Sheets - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
Current Assets | ||
Cash and cash equivalents | $ 7,372,000 | $ 8,153,000 |
Accounts receivable (net of allowances for doubtful accounts of $45,000) | 24,130,000 | 21,052,000 |
Contract assets | 487,000 | 286,000 |
Inventories | 4,221,000 | 3,178,000 |
Prepaid expenses and other current assets | 1,577,000 | 1,870,000 |
Total current assets | 37,787,000 | 34,539,000 |
Property and equipment, net | 5,672,000 | 4,568,000 |
Finite-life intangible assets, net | 605,000 | 599,000 |
Other assets | 161,000 | 120,000 |
Deferred income taxes | 1,581,000 | 1,538,000 |
Total assets | 45,806,000 | 41,364,000 |
Current Liabilities | ||
Accounts payable | 1,372,000 | 1,261,000 |
Accrued compensation | 3,018,000 | 2,742,000 |
Income tax payable | 336,000 | 51,000 |
Warranty reserve | 1,378,000 | 1,256,000 |
Other accrued liabilities | 1,949,000 | 1,840,000 |
Total current liabilities | 8,053,000 | 7,150,000 |
Other long-term liabilities | 86,000 | 41,000 |
Total liabilities | 8,139,000 | 7,191,000 |
Shareholders’ Equity | ||
Common stock, $0.01 par value, 13,000,000 shares authorized; 8,555,238 and 8,475,438 issued and outstanding, as of June 30, 2023 and June 30, 2022, respectively | 86,000 | 85,000 |
Additional paid-in capital | 18,788,000 | 18,308,000 |
Retained earnings | 18,793,000 | 15,780,000 |
Total shareholders’ equity | 37,667,000 | 34,173,000 |
Total liabilities and shareholders’ equity | $ 45,806,000 | $ 41,364,000 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 45,000 | $ 45,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized | 13,000,000 | 13,000,000 |
Common stock, issued | 8,555,238 | 8,475,438 |
Common stock, outstanding | 8,555,238 | 8,475,438 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||
Net revenues | $ 48,067,000 | $ 41,659,000 |
Cost of revenues | 11,548,000 | 10,217,000 |
Gross profit | 36,519,000 | 31,442,000 |
Operating expenses | ||
Selling, general and administrative | 31,595,000 | 27,114,000 |
Research and development | 916,000 | 1,356,000 |
Total operating expenses | 32,511,000 | 28,470,000 |
Operating income | 4,008,000 | 2,972,000 |
Interest income, net | 78,000 | 25,000 |
Net income before income taxes | 4,086,000 | 2,997,000 |
Income tax expense | 920,000 | 692,000 |
Net income | $ 3,166,000 | $ 2,305,000 |
Income per share: | ||
Basic | $ 0.37 | $ 0.27 |
Diluted | $ 0.36 | $ 0.26 |
Weighted-average common shares outstanding: | ||
Basic | 8,463,684 | 8,471,320 |
Diluted | 8,700,833 | 8,768,703 |
Statements of Shareholders' Equ
Statements of Shareholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Jun. 30, 2021 | $ 85,000 | $ 17,409,000 | $ 14,922,000 | $ 32,416,000 |
Balance at beginning (in shares) at Jun. 30, 2021 | 8,533,209 | |||
Net income | 2,305,000 | 2,305,000 | ||
Issuance of restricted stock, net | $ 1,000 | 1,000 | ||
Issuance of restricted stock, net (in shares) | 49,400 | |||
Issuance of common stock upon exercise of options | ||||
Issuance of common stock upon exercise of options (in shares) | 13,245 | |||
Taxes paid on stock option exercised on a net basis | (77,000) | (77,000) | ||
Share-based compensation expense | 976,000 | 976,000 | ||
Repurchase of common stock | $ (1,000) | (1,447,000) | (1,448,000) | |
Repurchase of common stock (in shares) | (120,416) | |||
Ending balance, value at Jun. 30, 2022 | $ 85,000 | 18,308,000 | 15,780,000 | $ 34,173,000 |
Balance at ending (in shares) at Jun. 30, 2022 | 8,475,438 | 8,475,438 | ||
Net income | 3,166,000 | $ 3,166,000 | ||
Issuance of restricted stock, net | ||||
Issuance of restricted stock, net (in shares) | 28,701 | |||
Issuance of common stock upon exercise of options | $ 1,000 | 82,000 | 83,000 | |
Issuance of common stock upon exercise of options (in shares) | 66,467 | |||
Taxes paid on stock option exercised on a net basis | (310,000) | (310,000) | ||
Share-based compensation expense | 708,000 | 708,000 | ||
Repurchase of common stock | (153,000) | $ (153,000) | ||
Repurchase of common stock (in shares) | (15,368) | (239,995) | ||
Ending balance, value at Jun. 30, 2023 | $ 86,000 | $ 18,788,000 | $ 18,793,000 | $ 37,667,000 |
Balance at ending (in shares) at Jun. 30, 2023 | 8,555,238 | 8,555,238 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash Flows from Operating Activities | ||
Net income | $ 3,166,000 | $ 2,305,000 |
Adjustments to reconcile net income to net cash provided by (used in operating activities: | ||
Depreciation | 550,000 | 503,000 |
Amortization of finite-life intangible assets | 63,000 | 125,000 |
Share-based compensation expense | 708,000 | 976,000 |
Deferred income taxes | (43,000) | (489,000) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (3,078,000) | (4,020,000) |
Contract assets | (201,000) | 107,000 |
Inventories | (1,033,000) | (1,072,000) |
Prepaid expenses and other current assets | 202,000 | (1,322,000) |
Income tax payable | 285,000 | (237,000) |
Accounts payable and accrued liabilities | 420,000 | 2,170,000 |
Accrued compensation | 276,000 | 268,000 |
Net cash provided by (used in) operating activities | 1,315,000 | (686,000) |
Cash Flows from Investing Activities | ||
Expenditures for property and equipment | (1,648,000) | (1,425,000) |
Expenditures for finite-life intangible assets | (68,000) | (100,000) |
Net cash used in investing activities | (1,716,000) | (1,525,000) |
Cash Flows from Financing Activities | ||
Issuance of common stock upon exercise of options | 83,000 | |
Taxes paid on stock options exercised on a net basis | (310,000) | (77,000) |
Repurchase of common stock | (153,000) | (1,448,000) |
Net cash used in financing activities | (380,000) | (1,525,000) |
Net decrease in cash | (781,000) | (3,736,000) |
Cash and cash equivalents | ||
Beginning of period | 8,153,000 | 11,889,000 |
End of period | 7,372,000 | 8,153,000 |
Supplemental Disclosures of Cash Flow Information | ||
Cash paid for income taxes | 676,000 | 1,418,000 |
Supplemental Disclosures of Noncash Investing and Financing Activities | ||
Property and equipment acquisitions in accounts payable | 60,000 | 44,000 |
Intangible asset acquisitions in accounts payable | 4,000 | 3,000 |
Lease assets obtained in exchange for new operating lease liabilities | 120,000 | 117,000 |
Demonstration equipment returned to inventory | $ 10,000 | $ 8,000 |
Nature of Business and Summary
Nature of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Nature of Business and Summary of Significant Accounting Policies | Note 1. Nature of Business and Summary of Significant Accounting Policies Nature of business: 424,000 521,000 Impacts of COVID-19 on the Company’s business The Company did not receive any direct financial assistance from any government program during fiscal 2022 or fiscal 2023 in connection with COVID-19 relief measures. In response to the COVID-19 pandemic and the U.S. federal government’s declaration of a public health emergency, the Centers for Medicare and Medicaid Services (“CMS”) implemented a number of temporary rule changes and waivers to allow prescribers to best treat patients during the period of the public health emergency. These waivers were made retroactively effective to March 1, 2020 and were in place for the duration of fiscal 2021 and fiscal 2022 and through May 11, 2023. Clinical indications and documentation typically required were not enforced for respiratory related products including the Company’s SmartVest® Airway Clearance System (“SmartVest System”) (solely with respect to direct Medicare covered patients) applicable for the Company’s home care prescriptions. The potential impact of the COVID-19 pandemic and its effects on our operational and financial performance will depend in large part on future developments, which cannot be reasonably estimated at this time. A summary of the Company’s significant accounting policies follows: Use of estimates Revenue recognition Shipping and handling expense 896,000 982,000 Cash and cash equivalents Accounts receivable 45,000 Contract assets Inventories Property and equipment Leases Finite-life intangible assets Long-lived assets If the Company believes the carrying value is unrecoverable, then it recognizes an impairment charge necessary to reduce the unamortized balance to the estimated fair value of the asset or asset group. The amount of such impairment is charged to operations in the current period. Warranty liability Changes in the Company’s warranty liability were as follows: Schedule of changes in warranty liability Years Ended June 30, 2023 2022 Beginning warranty reserve $ 1,256,000 $ 940,000 Accrual for products sold 416,000 494,000 Expenditures and costs incurred for warranty claims (294,000 ) (178,000 ) Ending warranty reserve $ 1,378,000 $ 1,256,000 Income taxes The Company recognizes tax liabilities when the Company believes that certain positions may not be fully sustained upon review by tax authorities. Benefits from tax positions are measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences impact income tax expense in the period in which such determination is made. Interest and penalties, if any, related to accrued liabilities for potential tax assessments are included in income tax expense. Research and development Advertising costs 1,244,000 936,000 Share-based payments Fair value of financial instruments Net income per common share 237,149 297,383 194,154 113,646 Recently Issued Accounting Standards In June 2016, the Financial Accounting Board issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments -- Credit Losses: Measurement of Credit Losses on Financial Instruments, which was subsequently amended by ASU 2018-19, ASU 2019-04, 2019-05, 2019-10, 2019-11, and 2020-02. The standard introduces new accounting guidance for credit losses on financial instruments within its scope, including trade receivables. This new guidance adds an impairment model that is based on expected losses rather than incurred losses. It is effective for interim and annual reporting periods beginning after December 15, 2022, with early adoption permitted. Adoption of the standard is not expected to have a material impact on the financial statements. |
Revenues
Revenues | 12 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Note 2. Revenues Revenue is measured based on consideration specified in the contract with a customer, adjusted for any applicable estimates of variable consideration and other factors affecting the transaction price, including consideration paid or payable from customers and significant financing components. Revenue from all customers is recognized when a performance obligation is satisfied by transferring control of a distinct good or service to a customer, as further described below under Performance obligations and transaction price Individual promised goods and services in a contract are considered a performance obligation and accounted for separately if the individual good or service is distinct (i.e., the customer can benefit from the good or service on its own or with other resources that are readily available to the customer and the good or service is separately identifiable from other promises in the arrangement). If an arrangement includes multiple performance obligations, the consideration is allocated between the performance obligations in proportion to their estimated standalone selling price, unless discounts or variable consideration is attributable to one or more but not all the performance obligations. Costs related to products delivered are recognized in the period incurred, unless criteria for capitalization of costs under Accounting Standards Codification (“ASC”) 340-40, “Other Assets and Deferred Costs” (“ASC 340”), or other applicable guidance are met. The Company includes shipping and handling fees in net revenues. Shipping and handling costs associated with the shipment of the SmartVest System after control has transferred to a customer are accounted for as a fulfillment cost and are included in cost of revenues in the Statements of Operations. The timing of revenue recognition, billings and cash collections results in accounts receivable on the Balance Sheets as further described below under Accounts receivable Contract assets Disaggregation of revenues. Schedule of disaggregated revenue Years Ended June 30, 2023 2022 Home care $ 43,945,000 $ 38,004,000 Institutional 2,080,000 1,660,000 Home care distributor 1,618,000 1,474,000 International 424,000 521,000 Total $ 48,067,000 $ 41,659,000 In the following table, home care revenue is disaggregated by payer type: Years Ended June 30, 2023 2022 Commercial $ 18,481,000 $ 14,937,000 Medicare 18,682,000 16,692,000 Medicare Supplemental 5,000,000 4,484,000 Medicaid 941,000 1,028,000 Other 841,000 863,000 Total $ 43,945,000 $ 38,004,000 Revenues in the Company’s home care, home care distributor and international markets are recognized at a point in time when control passes to the customer upon product shipment or delivery. Revenues in the Company’s institutional market include sales recognized at a point in time upon shipment or delivery. Performance obligations and transaction price. Home care market The Company makes available to its home care patients limited post-sale services that are not material in the context of the contracts, either individually or taken together, and therefore does not consider them to be performance obligations. The costs associated with the services are accrued and expensed when the related revenues are recognized. As such, transactions in the home care market consist of a single performance obligation: the SmartVest System. Home care patients generally will rely on third-party payers, including commercial payers and governmental payers such as Medicare, Medicaid and the U.S. Department of Veterans Affairs to cover and reimburse all or part of the cost of the SmartVest System. The third-party payers’ reimbursement programs fall into three types, distinguished by the differences in the timing of payments from the payer, consisting of either (i) outright sale, in which payment is received from the payer based on standard terms, (ii) capped installment sale, under which the SmartVest System is sold for a series of payments that are capped not to exceed a prescribed or negotiated amount over a period of time or (iii) installment sale, under which the SmartVest System is paid for over a period of several months as long as the patient continues to use the SmartVest System. Regardless of the type of transaction, provided criteria for an enforceable contract are met, it is the Company’s long-standing business practice to regard all home care agreements as transferring control to the patient upon shipment or delivery, in spite of possible payment cancellation under government or commercial programs where the payer is controlling the payment over specified time periods. For home care sales that feature installment payments, the ultimate amount of consideration received from Medicare, Medicaid or commercial payers can be significantly less than expected if the contract is terminated due to changes in the patient’s status, including insurance coverage, hospitalization, death or otherwise becoming unable to use the SmartVest System. However, once delivered to a patient who needs the SmartVest System, the patient is under no obligation to return the SmartVest System should payments be terminated as a result of the described contingencies. As a result, the Company’s product sales qualify for point in time revenue recognition. Control transfers to the patient, and revenue is recognized, upon shipment or delivery of the SmartVest System. At this point, physical possession and the significant risks and rewards of ownership are transferred to the patient and either a current or future right to payment is triggered, as further discussed under Accounts receivable Contract assets The Company’s contractually stated transaction prices in the home care market are generally set by the terms of the contracts negotiated with insurance companies or by government programs. The transaction price for the Company’s products may be further impacted by variable consideration. ASC 606 requires the Company to adjust the transaction price at contract inception and throughout the contract duration for the estimated value of payments to be received from insurance payers based on historical experience and other available information, subject to the constraint on estimates of variable consideration. Transactions requiring estimates of variable consideration primarily include (i) capped installment payments, which are subject to the third-party payer’s termination due to changes in insurance coverage, death or the patient’s discontinued use of the SmartVest System, (ii) contracts under appeal and (iii) patient responsibility amounts for deductibles, coinsurance, copays and other similar payments. Although estimates may be made on a contract-by-contract basis, whenever possible, the Company uses all available information including historical collection patterns to estimate variable consideration for portfolios of contracts. The Company’s estimates of variable consideration consist of amounts it may receive from insurance providers in excess of its initial revenue estimate due to patients meeting deductibles or coinsurance during the payment duration, changes to a patient’s insurance status, changes in an insurance allowable, claims in appeals with Medicare and amounts received directly from patients for their allowable or coinsurance. The Company believes it has representative historical information to estimate the amount of variable consideration in relevant portfolios considering the significant experience it has with each portfolio and the similarity of patient accounts within a portfolio. The analysis includes steps to ensure that revenue recognized on a portfolio basis does not result in a material difference when compared with an individual contract approach. The Company also leverages its historical experience and all available relevant information for each portfolio of contracts to minimize the risk its estimates used to arrive at the transaction price will result in a significant reversal in the amount of cumulative revenue recognized when the uncertainty associated with the variable consideration is subsequently resolved. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. For contracts in which the Company believes the criteria for reimbursement under government or commercial payer contracts have been met but for which coverage is unconfirmed or payments are under appeal, the Company has significant observable evidence of relatively consistent claims recovery experience over the prior three to five years. The Company believes the low volatility in historical claims approval rates for populations of patients whose demographics are similar to those of current patients provides reliable predictive value in arriving at estimates of variable consideration in such contracts. Similarly, historical payment trends for recovery of claims subject to payer installments and payments from patients have remained relatively consistent over the past five years. No significant changes in patient demographics or other relevant factors have occurred that would limit the predictive value of such payment trends in estimating variable consideration for current contracts. As a result, the Company believes its estimates of variable consideration are generally not subject to the risk of significant revenue reversal. For each type of variable consideration discussed above, there are a large number of contracts with similar characteristics with a wide range of possible transaction prices. For that reason, the Company uses the probability-weighted expected value method provided under ASC 606 to estimate variable consideration. The Company often receives payment from third-party payers for the SmartVest System sales over a period of time that may exceed one year. Despite these extended payment terms, no significant financing component is deemed to exist because the purpose of such terms is not to provide financing to the patient, the payer or the Company. Rather, the extended payment terms are mandated by the government or commercial insurance programs, the fundamental purpose of which is to avoid paying the full purchase price of equipment that may potentially be used by the patient for only a short period of time. Home care distributors. Institutional market. ● Outright sale – Under these transactions, the Company sells its products for a prescribed or negotiated price. Transfer of control of the product, and associated revenue recognition, occurs at the time of shipment and payment is made within normal credit terms, usually within 30 days. ● Wrap usage agreements – Under these transactions, the Company provides a generator device at no cost to the hospital in return for a fixed annual commitment to purchase consumable wraps. These agreements are cancellable upon at least sixty days prior written notice by either party. If cancelled, the generator is returned to the Company, where it can be refurbished and used again at a later date. Revenue for the consumable wraps is recognized when control transfers to the customer. International market. Product warranty. Accounts receivable. Contract assets. Contract balances. Schedule of contract assets June 30, 2023 2022 Receivables, included in “Accounts receivable, net of allowance for doubtful accounts” $ 24,130,000 $ 21,052,000 Contract Assets $ 487,000 $ 286,000 Significant changes in contract assets during the period are as follows: Year Ended June 30, 2023 Year Ended June 30, 2022 Increase (decrease) Increase (decrease) Contract assets, beginning $ 286,000 $ 393,000 Reclassification of contract assets to accounts receivable (1,220,000 ) (833,000 ) Contract assets recognized 1,351,000 784,000 Increase (decrease) as a result of changes in the estimate of amounts to be realized from payers, excluding amounts transferred to receivables during the period 71,000 (58,000 ) Contract assets, ending $ 488,000 $ 286,000 |
Inventories
Inventories | 12 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 3. Inventories The components of inventory were as follows: Schedule of components of inventories June 30, 2023 2022 Parts inventory $ 3,420,000 $ 2,672,000 Work in process 470,000 100,000 Finished goods 323,000 469,000 Estimated inventory to be returned 265,000 228,000 Less: Reserve for obsolescence (257,000 ) (291,000 ) Total $ 4,221,000 $ 3,178,000 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 4. Property and Equipment Property and equipment were as follows: Schedule of property and equipment, including assets under capital leases Estimated Useful Lives June 30, (Years) 2023 2022 Building and building improvements 15 40 $ 3,427,000 $ 3,420,000 Land N/A 200,000 200,000 Land improvements 15 20 173,000 162,000 Equipment 3 10 3,024,000 2,356,000 Software 3 7 2,166,000 396,000 Demonstration and rental equipment 3 1,090,000 1,036,000 Construction in progress N/A 8,000 957,000 10,088,000 8,527,000 Less: Accumulated depreciation (4,416,000 ) (3,959,000 ) Net property and equipment $ 5,672,000 $ 4,568,000 |
Finite-life Intangible Assets
Finite-life Intangible Assets | 12 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-life Intangible Assets | Note 5. Finite-life Intangible Assets The carrying value of patents and trademarks includes the original cost of obtaining the patents, periodic renewal fees, and other costs associated with maintaining and defending patent and trademark rights. Patents and trademarks are amortized over their estimated useful lives, generally 15 12 224,000 433,000 The activity and net balances of finite-life intangible assets were as follows: Schedule of activity and balances of finite-life intangible assets Years Ended June 30, 2023 2022 Balance, beginning $ 599,000 $ 663,000 Additions 69,000 61,000 Amortization expense (63,000 ) (125,000 ) Balance, ending $ 605,000 $ 599,000 Based on the carrying value as of June 30, 2023, future amortization is expected to be as follows: Schedule of future amortization of finite-life intangible assets Fiscal years ending June 30: 2024 $ 46,000 2025 44,000 2026 44,000 2027 43,000 2028 41,000 Thereafter 387,000 Total $ 605,000 |
Financing Arrangements
Financing Arrangements | 12 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Note 6. Financing Arrangements The Company has a credit facility that provides for a revolving line of credit and a term loan. Effective December 17, 2021 2,500,000 no 8.25 1.0 2,500,000 57.0 December 18, 2023 2,500,000 The documents governing the line of credit contain certain financial and nonfinancial covenants that include a minimum tangible net worth covenant of not less than $ 10,125,000 |
Common Stock
Common Stock | 12 Months Ended |
Jun. 30, 2023 | |
Common Stock | |
Common Stock | Note 7. Common Stock Authorized shares: 15,000,000 13,000,000 0.01 2,000,000 On May 26, 2021 the Company’s Board of Directors (the “Board”) approved a stock repurchase authorization. Under the authorization, the Company was originally able to repurchase up to $ 3.0 239,995 2,725,000 11.36 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Note 8. Share-Based Compensation Share-based compensation expense for fiscal 2023 and 2022 was $ 708,000 976,000 296,000 1.5 1.84 Employee options: 900,000 163,500 288,070 291,245 The Company recognizes compensation expense related to share-based payment transactions in the financial statements based on the estimated fair value of the award issued. The fair value of each option is estimated using the Black-Scholes pricing model at the time of award grant. The Company estimates the expected life of options based on the expected holding period by the option holder. The risk-free interest rate is based upon observed U.S. Treasury interest rates for the expected term of the options. The Company makes assumptions with respect to expected stock price volatility based upon the historical volatility of its stock price. Forfeitures are accounted for as they occur. The following assumptions were used to estimate the fair value of options granted: Schedule of assumptions used to estimate fair value of options granted Years Ended June 30, 2023 2022 Risk-free interest rate 2.88 4.23 0.89 2.52 Expected term (years) 6 6 Expected volatility 53 54 55 64 The following table presents employee stock option activity for fiscal 2023 and 2022: Schedule of stock option transactions Number of Shares Weighted-Average Grant Date Fair Value Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life (in Years) Options outstanding as of June 30, 2021 468,049 $ 4.61 $ 4.98 5.82 Granted 81,901 $ 6.63 $ 11.52 — Exercised (32,000 ) $ 3.70 $ 5.44 — Canceled or forfeited (15,866 ) $ 6.63 $ 11.30 — Options outstanding as of June 30, 2022 502,084 $ 3.71 $ 5.82 5.35 Options exercisable as of June 30, 2022 429,888 $ 3.16 $ 4.77 4.76 Granted 104,325 $ 5.35 $ 9.93 — Exercised (101,357 ) $ 1.44 $ 2.21 — Canceled or forfeited (53,482 ) $ 6.33 $ 11.29 — Options outstanding as of June 30, 2023 451,570 $ 4.28 $ 6.93 5.53 Options exercisable as of June 30, 2023 377,875 $ 4.00 $ 6.25 4.90 The intrinsic value of a stock option is the amount by which the fair value of the underlying stock exceeds its exercise price. At June 30, 2023, the weighted average remaining contractual term for all outstanding stock options was 5.5 1,862,000 451,570 377,875 1,820,000 Restricted stock: The Company issued restricted stock awards to employees totaling 32,400 31,400 one three 9.92 11.48 21,000 18,000 9.86 12.09 Schedule of restricted stock transactions Shares of Restricted Stock Weighted-Average Grant Date Fair Value per Share Outstanding as of June 30, 2021 30,503 $ 12.57 Granted 49,400 $ 11.70 Vested (45,219 ) $ 11.61 Outstanding as of June 30, 2022 34,684 $ 12.59 Granted 53,400 $ 9.90 Vested (45,152 ) $ 11.05 Canceled or forfeited (24,699 ) $ 11.33 Outstanding as of June 30, 2023 18,233 $ 10.23 |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9. Income Taxes Components of the provision for income taxes were as follows: Schedule of components of the provision for income taxes Years Ended June 30, 2023 2022 Current: Current Federal $ 744,000 $ 891,000 Current State 219,000 290,000 Total Current 963,000 1,181,000 Deferred: Deferred Federal (20,000 ) (348,000 ) Deferred State (23,000 ) (141,000 ) Total Deferred (43,000 ) (489,000 ) Total Income Tax Expense $ 920,000 $ 692,000 Actual income tax expense differs from the expected tax expense, computed by applying the statutory federal income tax rate to the Company’s earnings before income taxes, as follows: Schedule of effective income tax reconciliation Years Ended June 30, 2023 2022 Tax expense at statutory federal rate $ 858,000 $ 629,000 State income tax expense, net of federal tax effect 155,000 105,000 Share based compensation (212,000 ) (10,000 ) Change in valuation allowance on deferred tax assets 11,000 27,000 Other permanent items 108,000 (59,000 ) Income tax expense $ 920,000 $ 692,000 The effective tax rates for fiscal 2023 and 2022 were 22.5 23.1 The significant components of deferred income taxes were as follows: Schedule of significant components of deferred income taxes June 30, 2023 2022 Deferred tax assets: Revenue recognition and accounts receivable reserves $ 1,292,000 $ 917,000 Accrued liabilities 252,000 325,000 Finite-life intangible assets 126,000 — Stock options 516,000 532,000 Tax credits 221,000 152,000 Other 35,000 51,000 Subtotal 2,442,000 1,977,000 Less: Valuation allowance (221,000 ) (152,000 ) Net deferred tax assets 2,221,000 1,825,000 Deferred tax liabilities: Finite-life intangible assets — (41,000 ) Property and equipment (640,000 ) (246,000 ) Total deferred tax liabilities (640,000 ) (287,000 ) Net deferred tax assets $ 1,581,000 $ 1,538,000 The Company has research and development state tax credit carryforwards of $ 221,000 152,000 221,000 152,000 The Company applies the accounting standard for uncertain tax positions pursuant to which a more-likely-than-not threshold is utilized to determine the recognition and derecognition of uncertain tax positions. Once the more-likely-than-not threshold is met, the amount of benefit to be recognized is the largest amount of tax benefit that is greater than 50 percent likely of being ultimately realized upon settlement. It further requires that a change in judgment related to the expected ultimate resolution of uncertain tax positions be recognized in earnings in the period of such a change. The Company does not believe that it has any material uncertain tax positions as of June 30, 2023 and June 30, 2022. The Company is subject to U.S. federal income tax as well as income tax of multiple state jurisdictions. With limited exceptions, the Company is no longer subject to federal and state income tax examinations by tax authorities for fiscal year ended prior to June 30, 2020. The Internal Revenue Service has completed its examination of the Company’s U.S. federal income tax return for the fiscal year ended June 30, 2020 without proposing any adjustments. The Company is not under any current income tax examinations by any other state or local taxing authority. If any issues addressed in the Company’s tax audits are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs. |
Leases
Leases | 12 Months Ended |
Jun. 30, 2023 | |
Leases | |
Leases | Note 10. Leases The Company has leases for office and warehouse space and office equipment that require monthly payments. These leases have payments ranging from $ 200 5,300 The Company has recognized right of use assets associated with its operating leases of $161,000 and $120,000 161,000 120,000 As of June 30, 2023, the Company has a weighted-average lease term of 1.5 4.0 82,000 Maturities of lease liabilities, which are included in other accrued liabilities and other long-term liabilities on the Balance Sheet, are as follows: Schedule of maturities of lease liabilities Fiscal years ending June 30: 2024 $ 80,000 2025 80,000 2026 8,000 2027 — 2028 — Total lease payments 168,000 Less: Interest (7,000 ) Present value of lease liabilities $ 161,000 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11. Commitments and Contingencies Litigation: On September 8, 2021, a state court putative class action lawsuit was filed in Minnesota against the Company asserting injury resulting from the previously announced data breach that impacted the Company’s customer protected health information and employee personal information and seeking compensatory damages, equitable relief, and attorneys’ fees and costs. On October 6, 2021, the proceeding was removed to the District of Minnesota. The Company believes the plaintiff was not injured as a result of the data privacy incident and, as a result, the claims are without merit. Accordingly, on November 11, 2021, the Company moved to dismiss the complaint in its entirety. Prior to the hearing on the motion to dismiss, the parties agreed in principle to settle the case. The parties have executed a settlement agreement and submitted a motion to settle the class action. During January 2023, the settlement was preliminarily approved. The hearing for final approval took place on June 5, 2023. Following the final approval hearing, the court issued a judgment on July 10, 2023 granting a motion for final approval of the settlement. As a result of the judgement, there was no additional impact on the financial statements as of or for the year ended June 30, 2023. 401(k) Profit Sharing Plan: 21 524,000 461,000 Employment Agreements: |
Related Parties
Related Parties | 12 Months Ended |
Jun. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Parties | Note 12. Related Parties The Company uses a parts supplier whose founder and president was a director of the Company through November 12, 2021. The Company made payments to the supplier of $ 1,857,000 360,000 247,000 160,000 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 13. Subsequent Events The Company evaluates, as of each reporting period, events or transactions that occur after the balance sheet date through the date the financial statements are issued for either disclosure or adjustment to the Company’s financial results. Except as described below, there have been no events subsequent to June 30, 2023 which would require recognition in the Financial Statements or Notes to the Financial Statements. |
Nature of Business and Summar_2
Nature of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Use of estimates | Use of estimates |
Revenue recognition | Revenue recognition |
Shipping and handling expense | Shipping and handling expense 896,000 982,000 |
Cash and cash equivalents | Cash and cash equivalents |
Accounts receivable | Accounts receivable 45,000 |
Contract assets | Contract assets |
Inventories | Inventories |
Property and equipment | Property and equipment |
Leases | Leases |
Finite-life intangible assets | Finite-life intangible assets |
Long-lived assets | Long-lived assets If the Company believes the carrying value is unrecoverable, then it recognizes an impairment charge necessary to reduce the unamortized balance to the estimated fair value of the asset or asset group. The amount of such impairment is charged to operations in the current period. |
Warranty liability | Warranty liability Changes in the Company’s warranty liability were as follows: Schedule of changes in warranty liability Years Ended June 30, 2023 2022 Beginning warranty reserve $ 1,256,000 $ 940,000 Accrual for products sold 416,000 494,000 Expenditures and costs incurred for warranty claims (294,000 ) (178,000 ) Ending warranty reserve $ 1,378,000 $ 1,256,000 |
Income taxes | Income taxes The Company recognizes tax liabilities when the Company believes that certain positions may not be fully sustained upon review by tax authorities. Benefits from tax positions are measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon settlement. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences impact income tax expense in the period in which such determination is made. Interest and penalties, if any, related to accrued liabilities for potential tax assessments are included in income tax expense. |
Research and development | Research and development |
Advertising costs | Advertising costs 1,244,000 936,000 |
Share-based payments | Share-based payments |
Fair value of financial instruments | Fair value of financial instruments |
Net income per common share | Net income per common share 237,149 297,383 194,154 113,646 |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In June 2016, the Financial Accounting Board issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments -- Credit Losses: Measurement of Credit Losses on Financial Instruments, which was subsequently amended by ASU 2018-19, ASU 2019-04, 2019-05, 2019-10, 2019-11, and 2020-02. The standard introduces new accounting guidance for credit losses on financial instruments within its scope, including trade receivables. This new guidance adds an impairment model that is based on expected losses rather than incurred losses. It is effective for interim and annual reporting periods beginning after December 15, 2022, with early adoption permitted. Adoption of the standard is not expected to have a material impact on the financial statements. |
Nature of Business and Summar_3
Nature of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of changes in warranty liability | Changes in the Company’s warranty liability were as follows: Schedule of changes in warranty liability Years Ended June 30, 2023 2022 Beginning warranty reserve $ 1,256,000 $ 940,000 Accrual for products sold 416,000 494,000 Expenditures and costs incurred for warranty claims (294,000 ) (178,000 ) Ending warranty reserve $ 1,378,000 $ 1,256,000 |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregated revenue | Disaggregation of revenues. Schedule of disaggregated revenue Years Ended June 30, 2023 2022 Home care $ 43,945,000 $ 38,004,000 Institutional 2,080,000 1,660,000 Home care distributor 1,618,000 1,474,000 International 424,000 521,000 Total $ 48,067,000 $ 41,659,000 In the following table, home care revenue is disaggregated by payer type: Years Ended June 30, 2023 2022 Commercial $ 18,481,000 $ 14,937,000 Medicare 18,682,000 16,692,000 Medicare Supplemental 5,000,000 4,484,000 Medicaid 941,000 1,028,000 Other 841,000 863,000 Total $ 43,945,000 $ 38,004,000 |
Schedule of contract assets | Contract balances. Schedule of contract assets June 30, 2023 2022 Receivables, included in “Accounts receivable, net of allowance for doubtful accounts” $ 24,130,000 $ 21,052,000 Contract Assets $ 487,000 $ 286,000 Significant changes in contract assets during the period are as follows: Year Ended June 30, 2023 Year Ended June 30, 2022 Increase (decrease) Increase (decrease) Contract assets, beginning $ 286,000 $ 393,000 Reclassification of contract assets to accounts receivable (1,220,000 ) (833,000 ) Contract assets recognized 1,351,000 784,000 Increase (decrease) as a result of changes in the estimate of amounts to be realized from payers, excluding amounts transferred to receivables during the period 71,000 (58,000 ) Contract assets, ending $ 488,000 $ 286,000 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of components of inventories | The components of inventory were as follows: Schedule of components of inventories June 30, 2023 2022 Parts inventory $ 3,420,000 $ 2,672,000 Work in process 470,000 100,000 Finished goods 323,000 469,000 Estimated inventory to be returned 265,000 228,000 Less: Reserve for obsolescence (257,000 ) (291,000 ) Total $ 4,221,000 $ 3,178,000 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment, including assets under capital leases | Property and equipment were as follows: Schedule of property and equipment, including assets under capital leases Estimated Useful Lives June 30, (Years) 2023 2022 Building and building improvements 15 40 $ 3,427,000 $ 3,420,000 Land N/A 200,000 200,000 Land improvements 15 20 173,000 162,000 Equipment 3 10 3,024,000 2,356,000 Software 3 7 2,166,000 396,000 Demonstration and rental equipment 3 1,090,000 1,036,000 Construction in progress N/A 8,000 957,000 10,088,000 8,527,000 Less: Accumulated depreciation (4,416,000 ) (3,959,000 ) Net property and equipment $ 5,672,000 $ 4,568,000 |
Finite-life Intangible Assets (
Finite-life Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of activity and balances of finite-life intangible assets | The activity and net balances of finite-life intangible assets were as follows: Schedule of activity and balances of finite-life intangible assets Years Ended June 30, 2023 2022 Balance, beginning $ 599,000 $ 663,000 Additions 69,000 61,000 Amortization expense (63,000 ) (125,000 ) Balance, ending $ 605,000 $ 599,000 |
Schedule of future amortization of finite-life intangible assets | Based on the carrying value as of June 30, 2023, future amortization is expected to be as follows: Schedule of future amortization of finite-life intangible assets Fiscal years ending June 30: 2024 $ 46,000 2025 44,000 2026 44,000 2027 43,000 2028 41,000 Thereafter 387,000 Total $ 605,000 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of assumptions used to estimate fair value of options granted | The following assumptions were used to estimate the fair value of options granted: Schedule of assumptions used to estimate fair value of options granted Years Ended June 30, 2023 2022 Risk-free interest rate 2.88 4.23 0.89 2.52 Expected term (years) 6 6 Expected volatility 53 54 55 64 |
Schedule of stock option transactions | The following table presents employee stock option activity for fiscal 2023 and 2022: Schedule of stock option transactions Number of Shares Weighted-Average Grant Date Fair Value Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life (in Years) Options outstanding as of June 30, 2021 468,049 $ 4.61 $ 4.98 5.82 Granted 81,901 $ 6.63 $ 11.52 — Exercised (32,000 ) $ 3.70 $ 5.44 — Canceled or forfeited (15,866 ) $ 6.63 $ 11.30 — Options outstanding as of June 30, 2022 502,084 $ 3.71 $ 5.82 5.35 Options exercisable as of June 30, 2022 429,888 $ 3.16 $ 4.77 4.76 Granted 104,325 $ 5.35 $ 9.93 — Exercised (101,357 ) $ 1.44 $ 2.21 — Canceled or forfeited (53,482 ) $ 6.33 $ 11.29 — Options outstanding as of June 30, 2023 451,570 $ 4.28 $ 6.93 5.53 Options exercisable as of June 30, 2023 377,875 $ 4.00 $ 6.25 4.90 |
Schedule of restricted stock transactions | Schedule of restricted stock transactions Shares of Restricted Stock Weighted-Average Grant Date Fair Value per Share Outstanding as of June 30, 2021 30,503 $ 12.57 Granted 49,400 $ 11.70 Vested (45,219 ) $ 11.61 Outstanding as of June 30, 2022 34,684 $ 12.59 Granted 53,400 $ 9.90 Vested (45,152 ) $ 11.05 Canceled or forfeited (24,699 ) $ 11.33 Outstanding as of June 30, 2023 18,233 $ 10.23 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of the provision for income taxes | Components of the provision for income taxes were as follows: Schedule of components of the provision for income taxes Years Ended June 30, 2023 2022 Current: Current Federal $ 744,000 $ 891,000 Current State 219,000 290,000 Total Current 963,000 1,181,000 Deferred: Deferred Federal (20,000 ) (348,000 ) Deferred State (23,000 ) (141,000 ) Total Deferred (43,000 ) (489,000 ) Total Income Tax Expense $ 920,000 $ 692,000 |
Schedule of effective income tax reconciliation | Actual income tax expense differs from the expected tax expense, computed by applying the statutory federal income tax rate to the Company’s earnings before income taxes, as follows: Schedule of effective income tax reconciliation Years Ended June 30, 2023 2022 Tax expense at statutory federal rate $ 858,000 $ 629,000 State income tax expense, net of federal tax effect 155,000 105,000 Share based compensation (212,000 ) (10,000 ) Change in valuation allowance on deferred tax assets 11,000 27,000 Other permanent items 108,000 (59,000 ) Income tax expense $ 920,000 $ 692,000 |
Schedule of significant components of deferred income taxes | The significant components of deferred income taxes were as follows: Schedule of significant components of deferred income taxes June 30, 2023 2022 Deferred tax assets: Revenue recognition and accounts receivable reserves $ 1,292,000 $ 917,000 Accrued liabilities 252,000 325,000 Finite-life intangible assets 126,000 — Stock options 516,000 532,000 Tax credits 221,000 152,000 Other 35,000 51,000 Subtotal 2,442,000 1,977,000 Less: Valuation allowance (221,000 ) (152,000 ) Net deferred tax assets 2,221,000 1,825,000 Deferred tax liabilities: Finite-life intangible assets — (41,000 ) Property and equipment (640,000 ) (246,000 ) Total deferred tax liabilities (640,000 ) (287,000 ) Net deferred tax assets $ 1,581,000 $ 1,538,000 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Leases | |
Schedule of maturities of lease liabilities | Maturities of lease liabilities, which are included in other accrued liabilities and other long-term liabilities on the Balance Sheet, are as follows: Schedule of maturities of lease liabilities Fiscal years ending June 30: 2024 $ 80,000 2025 80,000 2026 8,000 2027 — 2028 — Total lease payments 168,000 Less: Interest (7,000 ) Present value of lease liabilities $ 161,000 |
Schedule of changes in warranty
Schedule of changes in warranty liability (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Accounting Policies [Abstract] | ||
Beginning warranty reserve | $ 1,256,000 | $ 940,000 |
Accrual for products sold | 416,000 | 494,000 |
Expenditures and costs incurred for warranty claims | (294,000) | (178,000) |
Ending warranty reserve | $ 1,378,000 | $ 1,256,000 |
Nature of Business and Summar_4
Nature of Business and Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
AccountingPoliciesLineItem [Line Items] | ||
Net revenues | $ 48,067,000 | $ 41,659,000 |
Cost of revenues | 11,548,000 | 10,217,000 |
Accounts receivable, allowance for doubtful accounts | 45,000 | 45,000 |
Advertising, marketing and trade show costs | $ 1,244,000 | $ 936,000 |
Common stock equivalents included from calculation of diluted earnings per share | 237,149 | 297,383 |
Antidilutive securities excluded from computation of earnings per share | 194,154 | 113,646 |
Shipping and Handling [Member] | ||
AccountingPoliciesLineItem [Line Items] | ||
Cost of revenues | $ 896,000 | $ 982,000 |
International [Member] | ||
AccountingPoliciesLineItem [Line Items] | ||
Net revenues | $ 424,000 | $ 521,000 |
Schedule of disaggregated reven
Schedule of disaggregated revenue (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 48,067,000 | $ 41,659,000 |
Home Care [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 43,945,000 | 38,004,000 |
Home Care [Member] | Commercial [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 18,481,000 | 14,937,000 |
Home Care [Member] | Medicare [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 18,682,000 | 16,692,000 |
Home Care [Member] | Medicare Supplemental [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 5,000,000 | 4,484,000 |
Home Care [Member] | Medicaid [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 941,000 | 1,028,000 |
Home Care [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 841,000 | 863,000 |
Institutional [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 2,080,000 | 1,660,000 |
Home Care Distributor [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,618,000 | 1,474,000 |
International One [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 424,000 | $ 521,000 |
Schedule of contract assets (De
Schedule of contract assets (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Receivables, included in “Accounts receivable, net of allowance for doubtful accounts” | $ 24,130,000 | $ 21,052,000 |
Contract Assets | 487,000 | 286,000 |
Contract assets, beginning | 286,000 | 393,000 |
Reclassification of contract assets to accounts receivable | (1,220,000) | (833,000) |
Contract assets recognized | 1,351,000 | 784,000 |
Increase (decrease) as a result of changes in the estimate of amounts to be realized frompayers, excluding amounts transferred to receivables during the period | 71,000 | (58,000) |
Contract assets, ending | $ 487,000 | $ 286,000 |
Schedule of components of inven
Schedule of components of inventories (Details) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
Inventory Disclosure [Abstract] | ||
Parts inventory | $ 3,420,000 | $ 2,672,000 |
Work in process | 470,000 | 100,000 |
Finished goods | 323,000 | 469,000 |
Estimated inventory to be returned | 265,000 | 228,000 |
Less: Reserve for obsolescence | (257,000) | (291,000) |
Total | $ 4,221,000 | $ 3,178,000 |
Schedule of property and equipm
Schedule of property and equipment, including assets under capital leases (Details) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 10,088,000 | $ 8,527,000 |
Less: Accumulated depreciation | (4,416,000) | (3,959,000) |
Net property and equipment | 5,672,000 | 4,568,000 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 3,427,000 | 3,420,000 |
Building and Building Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 15 years | |
Building and Building Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 40 years | |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 200,000 | 200,000 |
Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 173,000 | 162,000 |
Land Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 15 years | |
Land Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 20 years | |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 3,024,000 | 2,356,000 |
Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 10 years | |
Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 2,166,000 | 396,000 |
Software [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Software [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 7 years | |
Demonstration and Rental Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 3 years | |
Gross property and equipment | $ 1,090,000 | 1,036,000 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 8,000 | $ 957,000 |
Schedule of activity and balanc
Schedule of activity and balances of finite-life intangible assets (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Balance, beginning | $ 599,000 | $ 663,000 |
Additional | 69,000 | 61,000 |
Amortization expense | (63,000) | (125,000) |
Balance, ending | $ 605,000 | $ 599,000 |
Schedule of future amortization
Schedule of future amortization of finite-life intangible assets (Details) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
2024 | $ 46,000 | ||
2025 | 44,000 | ||
2026 | 44,000 | ||
2027 | 43,000 | ||
2028 | 41,000 | ||
Thereafter | 387,000 | ||
Total | $ 605,000 | $ 599,000 | $ 663,000 |
Finite-life Intangible Assets_2
Finite-life Intangible Assets (Details Narrative) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | $ 224,000 | $ 433,000 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 15 years | |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, useful life | 12 years |
Financing Arrangements (Details
Financing Arrangements (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Line of Credit Facility [Line Items] | ||
Minimum tangible net worth to be maintained | $ 10,125,000 | |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit facility effective date | Dec. 17, 2021 | |
Maximum borrowing capacity | $ 2,500,000 | |
Line of credit balance | $ 0 | $ 0 |
Basis spread on rate | 1% | |
Borrowing capacity of eligible accounts receivable | $ 2,500,000 | |
Available borrowing capacity | 57% | |
Credit facility expiration date | Dec. 18, 2023 | |
Available borrowing capacity | $ 2,500,000 | |
Revolving Credit Facility [Member] | Prime Rate [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate | 8.25% |
Common Stock (Details Narrative
Common Stock (Details Narrative) - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | May 26, 2021 | |
Common stock, authorized | 13,000,000 | 13,000,000 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Number of share repurchased | 239,995 | ||
Repurchase of common stock | $ (153,000) | $ (1,448,000) | |
Share price | $ 11.36 | ||
Board of Directors Chairman [Member] | |||
Common stock, authorized | 3,000,000 | ||
Common Stock [Member] | |||
Common stock, authorized | 13,000,000 | ||
Common stock, par value (in dollars per share) | $ 0.01 | ||
Number of share repurchased | 15,368 | 120,416 | |
Repurchase of common stock | $ (1,000) | ||
Capital Stock [Member] | |||
Common stock, authorized | 15,000,000 | ||
Authorized Shares Undesignated Stock [Member] | |||
Common stock, authorized | 2,000,000 |
Schedule of assumptions used to
Schedule of assumptions used to estimate fair value of options granted (Details) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Risk free interest rate - minimum | 2.88% | 0.89% |
Risk free interest rate - maximum | 4.23% | 2.52% |
Expected term (years) | 6 years | 6 years |
Expected volatility - minimum | 53% | 55% |
Expected volatility - maximum | 54% | 64% |
Schedule of stock option transa
Schedule of stock option transactions (Details) - $ / shares | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Option outstanding, ending | 451,570 | |
Option outstanding, ending | 377,875 | |
Share-Based Payment Arrangement, Option [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Number of shares, beginning | 502,084 | 468,049 |
Weighted average grant date fair value, beginning | $ 3.71 | $ 4.61 |
Weighted average exercise price, beginning | $ 5.82 | $ 4.98 |
Options outstanding at beginning (in years) | 5 years 9 months 25 days | |
Options exercisable, granted | 104,325 | 81,901 |
Options exercisable, granted | $ 5.35 | $ 6.63 |
Options exercisable, granted | $ 9.93 | $ 11.52 |
Options exercisable, exercised | (101,357) | (32,000) |
Options exercisable, exercised | $ 1.44 | $ 3.70 |
Options exercisable, exercised | $ 2.21 | $ 5.44 |
Options exercisable, canceled or forfeited | (53,482) | (15,866) |
Options exercisable, canceled or forfeited | $ 6.33 | $ 6.63 |
Options exercisable, canceled or forfeited | $ 11.29 | $ 11.30 |
Option outstanding, ending | 451,570 | 502,084 |
Weighted average grant date fair value, ending | $ 4.28 | $ 3.71 |
Weighted average exercise price, ending | $ 6.93 | $ 5.82 |
Option outstanding at ending (in Years) | 5 years 6 months 10 days | 5 years 4 months 6 days |
Option outstanding, ending | 377,875 | 429,888 |
Options exercisable , ending | $ 4 | $ 3.16 |
Options exercisable , ending | $ 6.25 | $ 4.77 |
Option exercisable at ending | 4 years 9 months 3 days | |
Options exercisable, ending (in years) | 4 years 10 months 25 days |
Schedule of restricted stock tr
Schedule of restricted stock transactions (Details) - Restricted Stock [Member] - $ / shares | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Outstanding, beginning | 34,684 | 30,503 |
Outstanding, beginning | $ 12.59 | $ 12.57 |
Granted | 53,400 | 49,400 |
Granted | $ 9.90 | $ 11.70 |
Vested | (45,152) | (45,219) |
Vested | $ 11.05 | $ 11.61 |
Canceled or forfeited | (24,699) | |
Canceled or forfeited | $ 11.33 | |
Outstanding, ending | 18,233 | 34,684 |
Weighted average grant date fair value, ending | $ 10.23 |
Share-Based Compensation (Detai
Share-Based Compensation (Details Narrative) - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Share-based compensation expense | $ 708,000 | $ 976,000 | |
Unrecognized compensation expense | $ 296,000 | ||
Weighted average contractual term outstanding stock options | 5 years 6 months | ||
Options exercisable, intrinsic value | $ 1,862,000 | ||
Outstanding exercisable | 451,570 | ||
Vested and exercisable | 377,875 | ||
Options exercisable, intrinsic value | $ 1,820,000 | ||
Restricted Stock [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Fair value of per share | $ 9.92 | $ 11.48 | |
Share-Based Payment Arrangement, Option [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Outstanding exercisable | 451,570 | 502,084 | 468,049 |
Vested and exercisable | 377,875 | 429,888 | |
Current Plan [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Shares available for issuance | 900,000 | ||
Options outstanding (shares) | 288,070 | ||
Available for grant, shares | $ 291,245 | ||
Prior Plans [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Number of shares granted under the 2014 plan | 163,500 | ||
Employee [Member] | Restricted Stock [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Stock issued | 32,400 | 31,400 | |
Employee [Member] | Share-Based Payment Arrangement, Option [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Vesting term | 1 year | 3 years | |
Directors [Member] | Restricted Stock [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Stock issued | 21,000 | 18,000 | |
Fair value of per share | $ 9.86 | $ 12.09 | |
Minimum [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Weighted average contractual term outstanding stock options | 1 year 6 months | ||
Maximum [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Weighted average contractual term outstanding stock options | 1 year 10 months 3 days |
Schedule of components of the p
Schedule of components of the provision for income taxes (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Current: | ||
Current Federal | $ 744,000 | $ 891,000 |
Current State | 219,000 | 290,000 |
Total Current | 963,000 | 1,181,000 |
Deferred: | ||
Deferred Federal | (20,000) | (348,000) |
Deferred State | (23,000) | (141,000) |
Total Deferred | (43,000) | (489,000) |
Total Income Tax Expense | $ 920,000 | $ 692,000 |
Schedule of effective income ta
Schedule of effective income tax reconciliation (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||
Tax expense at statutory federal rate | $ 858,000 | $ 629,000 |
State income tax expense, net of federal tax effect | 155,000 | 105,000 |
Share based compensation | 708,000 | 976,000 |
Change in valuation allowance on deferred tax assets | 11,000 | 27,000 |
Other permanent items | 108,000 | (59,000) |
Income tax expense | $ 920,000 | $ 692,000 |
Schedule of significant compone
Schedule of significant components of deferred income taxes (Details) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
Deferred tax assets: | ||
Revenue recognition and accounts receivable reserves | $ 1,292,000 | $ 917,000 |
Accrued liabilities | 252,000 | 325,000 |
Finite-life intangible assets | 126,000 | |
Stock options | 516,000 | 532,000 |
Tax credits | 221,000 | 152,000 |
Other | 35,000 | 51,000 |
Subtotal | 2,442,000 | 1,977,000 |
Less: Valuation allowance | (221,000) | (152,000) |
Net deferred tax assets | 2,221,000 | 1,825,000 |
Deferred tax liabilities: | ||
Finite-life intangible assets | (41,000) | |
Property and equipment | (640,000) | (246,000) |
Total deferred tax liabilities | (640,000) | (287,000) |
Net deferred tax assets | $ 1,581,000 | $ 1,538,000 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Operating Loss Carryforwards [Line Items] | ||
Effective tax rate | 22.50% | 23.10% |
Valuation allowance | $ 221,000 | $ 152,000 |
State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Tax credit carryforwards | $ 221,000 | $ 152,000 |
Schedule of maturities of lease
Schedule of maturities of lease liabilities (Details) - USD ($) | Jun. 30, 2023 | Jun. 30, 2022 |
Leases | ||
2024 | $ 80,000 | |
2025 | 80,000 | |
2026 | 8,000 | |
Total lease payments | 168,000 | |
Less: Interest | (7,000) | |
Present value of lease liabilities | $ 161,000 | $ 120,000 |
Leases (Details Narrative)
Leases (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Property, Plant and Equipment [Line Items] | ||
Operating lease payment | $ 82,000 | |
Operating lease liability | $ 161,000 | $ 120,000 |
Weighted-average lease term | 1 year 6 months | |
Weighted-average discount rate | 4% | |
Office and Warehouse Space [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Operating lease payment | $ 200 | |
Office and Warehouse Space [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Operating lease payment | $ 5,300 |
Commitments and Contingencies (
Commitments and Contingencies (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Employee benefit plan, minimum age requirement | 21 years | |
Employee benefit plan, employer contribution | $ 524,000 | $ 461,000 |
Related Parties (Details Narrat
Related Parties (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Related Party Transactions [Abstract] | ||
Payments to the supplier | $ 1,857,000 | $ 360,000 |
Payments due to supplier | $ 247,000 | $ 160,000 |