Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Sep. 26, 2017 | Dec. 31, 2016 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | CHASE GENERAL CORP | ||
Entity Central Index Key | 15,357 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Well-Known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding | 969,834 | ||
Entity Public Float | $ 0 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2017 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2017 | Jun. 30, 2016 |
CURRENT ASSETS | ||
Cash and Cash Equivalents | $ 46,182 | $ 19,259 |
Trade Receivables, Net of Allowance for Doubtful Accounts of $13,733 and $16,549, Respectively | 127,207 | 179,622 |
Inventories: | ||
Finished Goods | 270,352 | 433,043 |
Goods in Process | 13,393 | 6,540 |
Raw Materials | 60,655 | 76,561 |
Packaging Materials | 135,638 | 135,732 |
Prepaid Expenses | 24,689 | 5,689 |
Income Taxes Receivable | 11,160 | 29,111 |
Deferred Income Taxes | 90,469 | 7,533 |
Total Current Assets | 779,745 | 893,090 |
PROPERTY AND EQUIPMENT | ||
Land | 35,000 | 35,000 |
Buildings | 77,348 | 77,348 |
Machinery and Equipment | 838,131 | 820,885 |
Trucks and Autos | 213,116 | 213,116 |
Office Equipment | 31,518 | 31,518 |
Leasehold Improvements | 72,068 | 72,068 |
Total | 1,267,181 | 1,249,935 |
Less Accumulated Depreciation | 1,002,043 | 896,288 |
Total Property and Equipment, Net | 265,138 | 353,647 |
Total Assets | 1,044,883 | 1,246,737 |
CURRENT LIABILITIES | ||
Accounts Payable | 63,628 | 46,718 |
Current Maturities of Notes Payable | 16,133 | 15,460 |
Accrued Expenses | 29,239 | 25,163 |
Deferred Income | 1,299 | 1,299 |
Total Current Liabilities | 110,299 | 88,640 |
LONG-TERM LIABILITIES | ||
Notes Payable, Less Current Maturities | 39,264 | 55,397 |
Deferred Income Taxes | 63,306 | 90,446 |
Deferred Income | 8,765 | 10,064 |
Total Long-Term Liabilities | 111,335 | 155,907 |
Total Liabilities | 221,634 | 244,547 |
COMMITMENTS AND CONTINGENCIES | ||
Capital Stock Issued and Outstanding: | ||
Common Stock, $1 Par Value | 969,834 | 969,834 |
Paid-In Capital in Excess of Par | 3,134,722 | 3,134,722 |
Accumulated Deficit | (5,642,747) | (5,463,806) |
Total Stockholders' Equity | 823,249 | 1,002,190 |
Total Liabilities and Stockholders' Equity | 1,044,883 | 1,246,737 |
Prior Cumulative Preferred Stock, $5 Par Value: | Series A | ||
Capital Stock Issued and Outstanding: | ||
Preferred stock, value | 500,000 | 500,000 |
Prior Cumulative Preferred Stock, $5 Par Value: | Series B | ||
Capital Stock Issued and Outstanding: | ||
Preferred stock, value | 500,000 | 500,000 |
Cumulative Preferred Stock, $20 Par Value: | Series A | ||
Capital Stock Issued and Outstanding: | ||
Preferred stock, value | 1,170,660 | 1,170,660 |
Cumulative Preferred Stock, $20 Par Value: | Series B | ||
Capital Stock Issued and Outstanding: | ||
Preferred stock, value | $ 190,780 | $ 190,780 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) | Jun. 30, 2017 | Jun. 30, 2016 |
Allowance for doubtful accounts on trade receivables (in dollars) | $ 13,733 | $ 16,549 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Prior Cumulative Preferred Stock, $5 Par Value: | Series A | ||
Preferred stock, par value (in dollars per share) | $ 5 | $ 5 |
Preferred stock, liquidation preference (in dollars) | $ 2,280,000 | $ 2,250,000 |
Prior Cumulative Preferred Stock, $5 Par Value: | Series B | ||
Preferred stock, par value (in dollars per share) | $ 5 | $ 5 |
Preferred stock, liquidation preference (in dollars) | $ 2,235,000 | $ 2,205,000 |
Cumulative Preferred Stock, $20 Par Value: | Series A | ||
Preferred stock, par value (in dollars per share) | $ 20 | $ 20 |
Preferred stock, liquidation preference (in dollars) | $ 5,136,263 | $ 5,077,730 |
Cumulative Preferred Stock, $20 Par Value: | Series B | ||
Preferred stock, par value (in dollars per share) | $ 20 | $ 20 |
Preferred stock, liquidation preference (in dollars) | $ 837,055 | $ 827,516 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||
NET SALES | $ 2,753,043 | $ 3,304,604 |
COST OF SALES | 2,259,952 | 2,477,479 |
Gross Profit on Sales | 493,091 | 827,125 |
OPERATING EXPENSES | ||
Selling Expenses | 373,743 | 436,869 |
General and Administrative Expenses | 396,934 | 372,684 |
Gain on Sale of Equipment | (21,364) | |
Total Operating Expenses | 770,677 | 788,189 |
Income (Loss) from Operations | (277,586) | 38,936 |
OTHER INCOME (EXPENSE) | ||
Miscellaneous Income (Expense) | (5,089) | 1,891 |
Interest Expense | (6,377) | (4,758) |
Total Other Expense | (11,466) | (2,867) |
Income (Loss) before Income Taxes | (289,052) | 36,069 |
PROVISION (BENEFIT) FOR INCOME TAXES | (110,111) | 2,473 |
NET INCOME (LOSS) | $ (178,941) | $ 33,596 |
NET LOSS PER SHARE OF COMMON STOCK | ||
- BASIC (in dollars per share) | $ (0.32) | $ (0.10) |
- DILUTED (in dollars per share) | $ (0.32) | $ (0.10) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Preferred StockPrior Cumulative Preferred Stock - Series A | Preferred StockPrior Cumulative Preferred Stock - Series B | Preferred StockCumulative Preferred Stock - Series A | Preferred StockCumulative Preferred Stock - Series B | Common Stock | Paid-In Capital | Accumulated Deficit | Total |
BALANCE at Jun. 30, 2015 | $ 500,000 | $ 500,000 | $ 1,170,660 | $ 190,780 | $ 969,834 | $ 3,134,722 | $ (5,497,402) | $ 968,594 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income (Loss) | 33,596 | 33,596 | ||||||
BALANCE at Jun. 30, 2016 | 500,000 | 500,000 | 1,170,660 | 190,780 | 969,834 | 3,134,722 | (5,463,806) | 1,002,190 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net Income (Loss) | (178,941) | (178,941) | ||||||
BALANCE at Jun. 30, 2017 | $ 500,000 | $ 500,000 | $ 1,170,660 | $ 190,780 | $ 969,834 | $ 3,134,722 | $ (5,642,747) | $ 823,249 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Collections from Customers | $ 2,805,458 | $ 3,312,589 |
Deferred Income | 1,299 | 1,298 |
Cost of Sales, Selling, General and Administrative Expenses Paid | (2,733,995) | (3,269,005) |
Interest Paid | (6,377) | (4,623) |
Income Taxes Paid | (6,757) | (66,408) |
Net Cash Provided (Used) by Operating Activities | 59,628 | (26,149) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of Property and Equipment | (17,245) | (24,671) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from Line-of-Credit | 325,000 | 300,000 |
Principal Payments on Line-of-Credit | (325,000) | (300,000) |
Principal Payments on Notes Payable | (15,460) | (14,125) |
Net Cash Used by Financing Activities | (15,460) | (14,125) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 26,923 | (64,945) |
Cash and Cash Equivalents, Beginning of Year | 19,259 | 84,204 |
CASH AND CASH EQUIVALENTS, END OF YEAR | 46,182 | 19,259 |
RECONCILIATION OF NET INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES | ||
Net Income (Loss) | (178,941) | 33,596 |
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities: | ||
Depreciation and Amortization | 105,754 | 115,832 |
Allowance for Bad Debts | (2,916) | 253 |
Deferred Income Amortization | (1,299) | (1,298) |
Deferred Income Taxes | (110,076) | (8,665) |
Gain on Sale of Equipment | (21,364) | |
Effects of Changes in Operating Assets and Liabilities: | ||
Trade Receivables | 55,331 | 7,732 |
Inventories | 171,838 | (38,976) |
Prepaid Expenses | (19,000) | |
Income Taxes Receivable | 17,951 | (29,111) |
Accounts Payable | 16,910 | (65,226) |
Accrued Expenses | 4,076 | 7,197 |
Income Taxes Payable | (26,119) | |
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES | $ 59,628 | $ (26,149) |
NATURE OF BUSINESS AND SIGNIFIC
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2017 | |
Nature Of Business and Significant Accounting Policies [Abstract] | |
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES Nature of Business Chase General Corporation (the Company) was incorporated on November 6, 1944 in the state of Missouri for the purpose of manufacturing confectionery products. The Company grants credit terms to substantially all customers, consisting of repackers, grocery accounts, and national syndicate accounts, who are primarily located in the Midwest region of the United States. Significant accounting policies are as follows: Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Dye Candy Company. All intercompany transactions and balances have been eliminated in consolidation. Segment Reporting of the Business The subsidiary, Dye Candy Company, operates two divisions, Chase Candy Products and Seasonal Candy Products. Chase Candy Products involve production and sale of a candy bar marketed under the trade name "Cherry Mash". The Seasonal Candy Products involve production and sale of coconut, peanut, chocolate, and fudge confectioneries. The products of both divisions are sold to the same type of customers in the same geographical areas. In addition, both divisions share a common labor force and utilize the same basic equipment and raw materials. Management considers these two divisions as one reportable segment in these consolidated financial statements. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all liquid investments with a maturity of three months or less when purchased to be cash equivalents. Revenue Recognition The Company recognizes revenues as product is shipped to customers. Net sales are comprised of the total sales billed during the period, including shipping and handling charges to customers, less the estimated returns, customer allowances and customer discounts. Shipping and Handling Costs Shipping and handling costs for freight expense on goods shipped are included in cost of sales. Freight expense on goods shipped for the years ended June 30, 2017 and 2016 was $159,851 and $183,456, respectively. Trade Receivables Trade receivables are uncollateralized customer obligations which generally require payment within thirty days from the invoice date. Trade receivables are stated at the invoice amount as no interest is charged to the customer for any past due amounts. Payments of trade receivables are applied to the specific invoices identified on the customer’s remittance advice or, if unspecified, to the earliest unpaid invoices. The carrying amount of trade receivables is reduced by a valuation allowance that reflects management’s best estimate of amounts that will not be collected. The allowance for doubtful accounts is based on management’s assessment of the collectability of specific customer accounts and the aging of the trade receivables. If there is a deterioration of a major customer’s credit worthiness or actual defaults are higher than the historical experience, management’s estimates of the recoverability of amounts due to the Company could be adversely affected. All accounts or portions thereof deemed to be uncollectible, or that require an excessive collection cost, are written off to the allowance for doubtful accounts. Inventories Inventories are carried at the "lower of cost or market value" with cost being determined on the "first-in, first-out" basis of accounting. The cost of finished goods and goods in process inventories include an estimate for manufacturing overhead. Property and Equipment The Company’s property and equipment is recorded at cost and is being depreciated on straight-line and accelerated methods over the following estimated useful lives: Buildings 39 years Machinery and equipment 5 – 7 years Trucks and autos 5 years Office equipment 5 – 7 years Leasehold improvements Lesser of estimated useful life or the lease term Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceed the fair value of the assets. Income Taxes Deferred income taxes are provided using the liability method for temporary differences between financial statement and income tax reporting. Temporary differences are differences between the amounts of assets and liabilities reported for financial statement purposes and their tax bases. Deferred income tax assets are recognized for temporary differences that will be deductible in future years’ tax returns and for operating loss and tax credit carryforwards. Deferred income tax assets are only recognized if it is more likely than not that a tax position will be realized or sustained upon examination by the relevant taxing authority. Deferred income tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some or all of the deferred income tax assets will not be realized. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement with a taxing authority that has full knowledge of relevant information. Deferred income tax liabilities are recognized for temporary differences that will be taxable in future years’ tax returns. Deferred income tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the dates of enactment. The Company’s policy is to evaluate uncertain tax positions under the guidance as prescribed by Accounting Standards Codification (ASC) 740, Income Taxes Earnings Per Common Share Basic earnings per common share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share shall be computed by including contingently issuable shares with the weighted average shares outstanding during the period. When inclusion of the contingently issuable shares would have an antidilutive effect upon earnings per share, diluted earnings per share will be calculated in the same manner as basic earnings per share. Earnings Per Common Share (Continued) The following table details out the contingently issuable shares for the years ended June 30, 2017 and 2016. For 2017 and 2016, the contingently issuable shares were not included in diluted earnings per common share as they would have an antidilutive effect upon earnings per share. 2017 2016 Shares Issuable Upon Conversion of Series A Prior Cumulative Preferred Stock 400,000 400,000 Shares Issuable Upon Conversion of Series B Prior Cumulative Preferred Stock 375,000 375,000 Shares Issuable Upon Conversion of Series A Cumulative Preferred Stock 222,133 222,133 Shares Issuable Upon Conversion of Series B Cumulative Preferred Stock 36,201 36,201 Total Dilutive Effect of Contingently Issuable Shares 1,033,334 1,033,334 Advertising Expense Advertising is expensed when incurred. Advertising expense was $16,049 and $13,941 for the years ended June 30, 2017 and 2016, respectively. Going Concern During the year ended June 30, 2017, the Company adopted ASU No. 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205-40)”. ASU 2014-15 provides guidance related to management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosure. Management determined that there are no conditions or events, when considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for at least one year after the date the consolidated financial statements are available for issuance. |
FORGIVABLE LOAN AND DEFERRED IN
FORGIVABLE LOAN AND DEFERRED INCOME | 12 Months Ended |
Jun. 30, 2017 | |
Forgivable Loan and Deferred Income [Abstract] | |
FORGIVABLE LOAN AND DEFERRED INCOME | NOTE 2 FORGIVABLE LOAN AND DEFERRED INCOME During 2004, the Company received a $25,000 economic development incentive from Buchanan County, which is a five year forgivable loan at a rate of $5,000 per year. The Nodaway Valley Bank established an Irrevocable Standby Letter of Credit in the amount of $25,000 as collateral for this loan, with a maturity date of January 3, 2010. The Company met the criteria of occupying a 20,000 square foot building and creating a minimum of two new full-time equivalent jobs during the first year of operation in the new facility. In addition, the Company maintained 19 existing jobs during the five year term. Notice was received February 6, 2009 from the Buchanan County Commission, that the Company had fulfilled its minimum loan requirements so that the loan was forgiven in full and has no further obligations. Since the Company was no longer legally required to return the monies, the liability was reclassified as deferred revenue and amortized into income over the life of the lease term of the new facility. Deferred revenue is recognized on a straight line basis over the lease term of 20 years. During the years ended June 30, 2017 and 2016, deferred revenue of $1,299 and $1,298, respectively, was amortized into income. |
NOTES PAYABLE
NOTES PAYABLE | 12 Months Ended |
Jun. 30, 2017 | |
Notes Payable [Abstract] | |
NOTES PAYABLE | NOTE 3 NOTES PAYABLE The Company’s long-term debt at June 30, 2017 and 2016 consists of: Payee Terms 2017 2016 Nodaway Valley Bank $350,000 line-of-credit agreement expiring on January 4, 2018, with a variable interest rate at prime but not less than 5%. The line-of-credit is collateralized by substantially all assets of the Company. Management anticipates renewal of the line-of-credit agreement at similar terms upon expiration. $ - $ - Ford Credit $705 monthly payments, interest of 5.8%; final payment due October 2021, secured by a vehicle. 32,308 38,674 Toyota Credit $364 monthly payments, interest of 3.5%; final payment due December 2020, secured by a vehicle. 14,383 18,179 Ford Credit $468 monthly payments, interest of 2.9%; final payment due January 2019, secured by a vehicle. 8,706 14,004 Total 55,397 70,857 Less current portion 16,133 15,460 Long-term portion $ 39,264 $ 55,397 Future minimum payments for the years ended June 30 are: 2018 $ 16,133 2019 14,477 2020 11,798 2021 10,204 2022 2,785 Total $ 55,397 |
CAPITAL STOCK
CAPITAL STOCK | 12 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
CAPITAL STOCK | NOTE 4 CAPITAL STOCK Capital stock authorized, issued, and outstanding as of June 30, 2017 is as follows: Shares Issued and Authorized Outstanding Prior Cumulative Preferred Stock, $5 Par Value: 6% Convertible 240,000 Series A 100,000 Series B 100,000 Cumulative Preferred Stock, $20 Par Value: 5% Convertible 150,000 Series A 58,533 Series B 9,539 Common Stock, $1 Par Value: Reserved for Conversion of Preferred Stock - 1,030,166 shares 2,000,000 969,834 Cumulative Preferred Stock dividends in arrears at June 30, 2017 and 2016 totaled $8,076,878 and $7,948,806, respectively. Total dividends in arrears, on a per share basis, consist of the following at June 30, 2017 and 2016: 2017 2016 6% Convertible Series A $ 17.55 $ 17.25 Series B $ 17.10 $ 16.80 5% Convertible Series A $ 67.50 $ 66.75 Series B $ 67.50 $ 66.75 The 6% convertible prior cumulative preferred stock may, upon thirty days prior notice, be redeemed by the Corporation at $5.25 a share plus unpaid accrued dividends to date of redemption. In the event of voluntary liquidation, holders of this stock are entitled to receive $5.25 per share plus accrued dividends. Cumulative preferred stock may be exchanged for common stock at the option of the shareholders in the ratio of 4 common shares for one share of Series A and 3.75 common shares for one share of Series B. The Company has the privilege of redemption of 5% convertible cumulative preferred stock at $21.00 a share plus unpaid accrued dividends. In the event of voluntary or involuntary liquidation, holders of this stock are entitled to receive $20.00 a share plus unpaid accrued dividends. It may be exchanged for common stock at the option of the shareholders, in the ratio of 3.795 common shares for one of preferred. |
INCOME TAX
INCOME TAX | 12 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | NOTE 5 INCOME TAX ES The income tax positions taken for open years are appropriately stated and supported for all open years. The Company’s federal tax returns for the years ended June 30, 2016, 2015, and 2014 are subject to examination by the IRS taxing authority. The sources of deferred income tax assets and liability at June 30, 2017 and 2016 are as follows: 2017 2016 Deferred Income Tax Assets: Net Operating Loss Carryover $ 83,694 $ - Trade Receivables 5,251 6,310 Deferred Income 3,837 4,332 Inventories 952 1,223 Contribution Carryover 572 - Total Deferred Income Tax Assets 94,306 11,865 Deferred Income Tax Liability: Property and Equipment (67,143 ) (94,778 ) NET DEFERRED INCOME TAX ASSET (LIABILITY) $ 27,163 $ (82,913 ) The net deferred income tax asset (liability) is presented in the accompanying June 30, 2017 and 2016 consolidated balance sheets as follows: 2017 2016 Current Deferred Income Tax Asset $ 90,469 $ 7,533 Noncurrent Deferred Income Tax Liability (63,306 ) (90,446 ) NET DEFERRED INCOME TAX ASSET (LIABILITY) $ 27,163 $ (82,913 ) The provision (benefit) for income taxes for the years ended June 30, 2017 and 2016 consists of the following: 2017 2016 Current Income Tax Expense (Credit) $ (35 ) $ 11,138 Deferred Income Tax Credit (110,076 ) (8,665 ) $ (110,111 ) $ 2,473 The income tax provision differs from the amount of income tax determined by applying the statutory federal income tax rate to pretax income for the years ended June 30, 2017 and 2016 due to the following: 2017 2016 Computed at Federal Statutory Rate of 34% $ (98,278 ) $ 12,309 Increase (Decrease) in Income Taxes Resulting from: Non-Deductible Expenses 111 630 Federal Tax Adjustment Due to Actual Rate vs. Statutory Rate - (9,730 ) Domestic Production Activities Deduction Credit - (1,767 ) Other (36 ) (27 ) State Income Taxes (11,908 ) 1,058 $ (110,111 ) $ 2,473 The Company has available at June 30, 2017, $219,526 of unused operating loss that may be carried back two years to offset prior taxable income or carried forward and applied against future taxable income. The carryforward expires on June 30, 2038. |
INCOME (LOSS) PER SHARE
INCOME (LOSS) PER SHARE | 12 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
LOSS PER SHARE | NOTE 6 LOSS PER SHARE The loss per share for the years ended June 30, 2017 and 2016, respectively, was computed on the weighted average of outstanding common shares during the year as follows: 2017 2016 Net Income (Loss) $ (178,941 ) $ 33,596 Preferred Dividend Requirements: 6% Prior Cumulative Preferred, $5 Par Value 60,000 60,000 5% Convertible Cumulative Preferred, $20 Par Value 68,072 68,072 Total Dividend Requirements 128,072 128,072 Net Loss - Common Stockholders $ (307,013 ) $ (94,476 ) 2017 2016 Weighted Average of Shares - Basic 969,834 969,834 Dilutive Effect of Contingently Issuable Shares 1,033,334 1,033,334 Weighted Average Shares – Diluted 2,003,168 2,003,168 Basic Loss per Share $ (0.32 ) $ (0.10 ) Diluted Loss per Share $ (0.32 ) $ (0.10 ) Contingently issuable shares were not included in the 2017 and 2016 diluted earnings per common share as they would have an antidilutive effect upon earnings per share. |
SUPPLEMENTAL DISCLOSURES OF CAS
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | 12 Months Ended |
Jun. 30, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | NOTE 7 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION 2017 2016 Cash Paid for: Interest $ 6,377 $ 4,623 Income Taxes 6,757 66,408 Non-Cash Transactions: Financing of New Vehicles - 62,681 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 8 COMMITMENTS AND CONTINGENCIES Dye Candy Company leases its office and manufacturing facility, located at 1307 South 59 th Future minimum lease payments under this lease are as follows: Year ending June 30: 2018 $ 78,000 2019 78,000 2020 78,000 2021 78,000 2022 78,000 Thereafter 214,500 $ 604,500 As of June 30, 2017, the Company had raw materials purchase commitments with four vendors totaling approximately $81,000. |
DISCLOSURES ABOUT FAIR VALUE OF
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 9 DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS The Company’s financial instruments consist principally of cash and cash equivalents, trade receivables and payables, and notes payable. There are no significant differences between the carrying value and fair value of any of these consolidated financial instruments. As of June 30, 2017, the amount of the Company’s long-term debt approximates fair value based on the present value of estimated future cash flows using a discount rate commensurate with a borrowing rate available to the Company. |
CONCENTRATION OF CREDIT RISK
CONCENTRATION OF CREDIT RISK | 12 Months Ended |
Jun. 30, 2017 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATION OF CREDIT RISK | NOTE 10 CONCENTRATION OF CREDIT RISK For the years ended June 30, 2017 and 2016, two customers accounted for 54% and 58%, respectively, of the gross sales. As of June 30, 2017 and 2016, two customers accounted for 52% and 60%, respectively, of trade receivables. |
RECENTLY ISSUED ACCOUNTING PRON
RECENTLY ISSUED ACCOUNTING PRONOUONCEMENTS | 12 Months Ended |
Jun. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENTLY ISSUED ACCOUNTING PRONOUONCEMENTS | NOTE 11 RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (“FASB”) issued amended guidance to clarify the principles for recognizing revenue from contracts with customers. The guidance requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. The guidance also requires expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required regarding customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. The guidance will initially be applied retrospectively using one of two methods. The standard will be effective for the entity for annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Early adoption is permitted beginning for annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is evaluating the impact of the amended revenue recognition guidance on its consolidated financial statements. In July 2015, the FASB issued Accounting Standards Update No. 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory,” (“ASU 2015-11”). An entity using an inventory method other than last-in, first out (“LIFO”) or the retail inventory method should measure inventory at the lower of cost and net realizable value. The new guidance clarifies that net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The update is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, with early adoption permitted. The Company does not expect the adoption of ASU 2015-11 to have a material effect on the financial position, results of operations, or cash flows. In February 2016, the FASB issued amended guidance for the treatment of leases. The guidance requires lessees to recognize a right-of-use asset and a corresponding lease liability for all operating and finance leases with lease terms greater than one year. The guidance also requires both qualitative and quantitative disclosures regarding the nature of the entity’s leasing activities. The guidance will initially be applied using a modified retrospective approach. The amendments in the guidance are effective for fiscal years beginning after December 15, 2018. Early adoption is permitted. The Company is evaluating the impact of the amended lease guidance on the its consolidated financial statements. In November 2015, the FASB issued ASC Update No. 2015-17, “Balance Sheet Classification of Deferred Taxes” as part of its simplification initiatives. This update requires deferred tax liabilities and assets to be classified as non-current on the consolidated condensed balance sheet for fiscal years beginning after December 15, 2016, and interim periods within those annual periods. Early application is permitted. An entity can elect to adopt prospectively or retrospectively to all periods presented. The Company does not expect the adoption of ASU 2015-17 to have a material effect on our financial position, results of operations, or cash flows. There have been no other newly issued or newly applicable accounting pronouncements that have, or are expected to have, a significant impact on the Company's consolidated financial statements. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 12 SUBSEQUENT EVENTS The Company monitors significant events occurring after June 30, 2017 and prior to the issuance of the financial statements to determine the impact, if any, of the events on the financial statements to be issued. All subsequent events of which the Company is aware were evaluated through the filing date of this Form 10-K. |
NATURE OF BUSINESS AND SIGNIF19
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2017 | |
Nature Of Business and Significant Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Dye Candy Company. All intercompany transactions and balances have been eliminated in consolidation. |
Segment Reporting of the Business | Segment Reporting of the Business The subsidiary, Dye Candy Company, operates two divisions, Chase Candy Products and Seasonal Candy Products. Chase Candy Products involve production and sale of a candy bar marketed under the trade name "Cherry Mash". The Seasonal Candy Products involve production and sale of coconut, peanut, chocolate, and fudge confectioneries. The products of both divisions are sold to the same type of customers in the same geographical areas. In addition, both divisions share a common labor force and utilize the same basic equipment and raw materials. Management considers these two divisions as one reportable segment in these consolidated financial statements. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all liquid investments with a maturity of three months or less when purchased to be cash equivalents. |
Revenue Recognition | Revenue Recognition The Company recognizes revenues as product is shipped to customers. Net sales are comprised of the total sales billed during the period, including shipping and handling charges to customers, less the estimated returns, customer allowances and customer discounts. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs for freight expense on goods shipped are included in cost of sales. Freight expense on goods shipped for the years ended June 30, 2017 and 2016 was $159,851 and $183,456, respectively. |
Trade Receivables | Trade Receivables Trade receivables are uncollateralized customer obligations which generally require payment within thirty days from the invoice date. Trade receivables are stated at the invoice amount as no interest is charged to the customer for any past due amounts. Payments of trade receivables are applied to the specific invoices identified on the customer’s remittance advice or, if unspecified, to the earliest unpaid invoices. The carrying amount of trade receivables is reduced by a valuation allowance that reflects management’s best estimate of amounts that will not be collected. The allowance for doubtful accounts is based on management’s assessment of the collectability of specific customer accounts and the aging of the trade receivables. If there is a deterioration of a major customer’s credit worthiness or actual defaults are higher than the historical experience, management’s estimates of the recoverability of amounts due to the Company could be adversely affected. All accounts or portions thereof deemed to be uncollectible, or that require an excessive collection cost, are written off to the allowance for doubtful accounts. |
Inventories | Inventories Inventories are carried at the "lower of cost or market value" with cost being determined on the "first-in, first-out" basis of accounting. The cost of finished goods and goods in process inventories include an estimate for manufacturing overhead. |
Property and Equipment | Property and Equipment The Company’s property and equipment is recorded at cost and is being depreciated on straight-line and accelerated methods over the following estimated useful lives: Buildings 39 years Machinery and equipment 5 – 7 years Trucks and autos 5 years Office equipment 5 – 7 years Leasehold improvements Lesser of estimated useful life or the lease term |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceed the fair value of the assets. |
Income Taxes | Income Taxes Deferred income taxes are provided using the liability method for temporary differences between financial statement and income tax reporting. Temporary differences are differences between the amounts of assets and liabilities reported for financial statement purposes and their tax bases. Deferred income tax assets are recognized for temporary differences that will be deductible in future years’ tax returns and for operating loss and tax credit carryforwards. Deferred income tax assets are only recognized if it is more likely than not that a tax position will be realized or sustained upon examination by the relevant taxing authority. Deferred income tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some or all of the deferred income tax assets will not be realized. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement with a taxing authority that has full knowledge of relevant information. Deferred income tax liabilities are recognized for temporary differences that will be taxable in future years’ tax returns. Deferred income tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the dates of enactment. The Company’s policy is to evaluate uncertain tax positions under the guidance as prescribed by Accounting Standards Codification (ASC) 740, Income Taxes |
Earnings Per Common Share | Earnings Per Common Share Basic earnings per common share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share shall be computed by including contingently issuable shares with the weighted average shares outstanding during the period. When inclusion of the contingently issuable shares would have an antidilutive effect upon earnings per share, diluted earnings per share will be calculated in the same manner as basic earnings per share. Earnings Per Common Share (Continued) The following table details out the contingently issuable shares for the years ended June 30, 2017 and 2016. For 2017 and 2016, the contingently issuable shares were not included in diluted earnings per common share as they would have an antidilutive effect upon earnings per share. 2017 2016 Shares Issuable Upon Conversion of Series A Prior Cumulative Preferred Stock 400,000 400,000 Shares Issuable Upon Conversion of Series B Prior Cumulative Preferred Stock 375,000 375,000 Shares Issuable Upon Conversion of Series A Cumulative Preferred Stock 222,133 222,133 Shares Issuable Upon Conversion of Series B Cumulative Preferred Stock 36,201 36,201 Total Dilutive Effect of Contingently Issuable Shares 1,033,334 1,033,334 |
Advertising Expense | Advertising Expense Advertising is expensed when incurred. Advertising expense was $16,049 and $13,941 for the years ended June 30, 2017 and 2016, respectively. |
Going Concern | Going Concern During the year ended June 30, 2017, the Company adopted ASU No. 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205-40)”. ASU 2014-15 provides guidance related to management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosure. Management determined that there are no conditions or events, when considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for at least one year after the date the consolidated financial statements are available for issuance. |
NATURE OF BUSINESS AND SIGNIF20
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Nature Of Business and Significant Accounting Policies [Abstract] | |
Schedule of property plant and equipment depreciated over the estimated useful life | Buildings 39 years Machinery and equipment 5 – 7 years Trucks and autos 5 years Office equipment 5 – 7 years Leasehold improvements Lesser of estimated useful life or the lease term |
Schedule of antidilutive shares excluded from computation of earnings per share | 2017 2016 Shares Issuable Upon Conversion of Series A Prior Cumulative Preferred Stock 400,000 400,000 Shares Issuable Upon Conversion of Series B Prior Cumulative Preferred Stock 375,000 375,000 Shares Issuable Upon Conversion of Series A Cumulative Preferred Stock 222,133 222,133 Shares Issuable Upon Conversion of Series B Cumulative Preferred Stock 36,201 36,201 Total Dilutive Effect of Contingently Issuable Shares 1,033,334 1,033,334 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Notes Payable [Abstract] | |
Schedule of long-term debt | Payee Terms 2017 2016 Nodaway Valley Bank $350,000 line-of-credit agreement expiring on January 4, 2018, with a variable interest rate at prime but not less than 5%. The line-of-credit is collateralized by substantially all assets of the Company. Management anticipates renewal of the line-of-credit agreement at similar terms upon expiration. $ - $ - Ford Credit $705 monthly payments, interest of 5.8%; final payment due October 2021, secured by a vehicle. 32,308 38,674 Toyota Credit $364 monthly payments, interest of 3.5%; final payment due December 2020, secured by a vehicle. 14,383 18,179 Ford Credit $468 monthly payments, interest of 2.9%; final payment due January 2019, secured by a vehicle. 8,706 14,004 Total 55,397 70,857 Less current portion 16,133 15,460 Long-term portion $ 39,264 $ 55,397 |
Schedule of future minimum payments of long term debt | 2018 $ 16,133 2019 14,477 2020 11,798 2021 10,204 2022 2,785 Total $ 55,397 |
CAPITAL STOCK (Tables)
CAPITAL STOCK (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Schedule of capital stock authorized, issued, and outstanding | Shares Issued and Authorized Outstanding Prior Cumulative Preferred Stock, $5 Par Value: 6% Convertible 240,000 Series A 100,000 Series B 100,000 Cumulative Preferred Stock, $20 Par Value: 5% Convertible 150,000 Series A 58,533 Series B 9,539 Common Stock, $1 Par Value: Reserved for Conversion of Preferred Stock - 1,030,166 shares 2,000,000 969,834 |
Schedule of preferred stock dividends in arrears on a per share basis | 2017 2016 6% Convertible Series A $ 17.55 $ 17.25 Series B $ 17.10 $ 16.80 5% Convertible Series A $ 67.50 $ 66.75 Series B $ 67.50 $ 66.75 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of sources of deferred tax assets and liability | 2017 2016 Deferred Income Tax Assets: Net Operating Loss Carryover $ 83,694 $ - Trade Receivables 5,251 6,310 Deferred Income 3,837 4,332 Inventories 952 1,223 Contribution Carryover 572 - Total Deferred Income Tax Assets 94,306 11,865 Deferred Income Tax Liability: Property and Equipment (67,143 ) (94,778 ) NET DEFERRED INCOME TAX ASSET (LIABILITY) $ 27,163 $ (82,913 ) |
Schedule of net deferred income tax asset (liability) | 2017 2016 Current Deferred Income Tax Asset $ 90,469 $ 7,533 Noncurrent Deferred Income Tax Liability (63,306 ) (90,446 ) NET DEFERRED INCOME TAX ASSET (LIABILITY) $ 27,163 $ (82,913 ) |
Schedule of provision (benefit) for income taxes | 2017 2016 Current Income Tax Expense (Credit) $ (35 ) $ 11,138 Deferred Income Tax Credit (110,076 ) (8,665 ) $ (110,111 ) $ 2,473 |
Schedule of effective income tax rate reconciliation | 2017 2016 Computed at Federal Statutory Rate of 34% $ (98,278 ) $ 12,309 Increase (Decrease) in Income Taxes Resulting from: Non-Deductible Expenses 111 630 Federal Tax Adjustment Due to Actual Rate vs. Statutory Rate - (9,730 ) Domestic Production Activities Deduction Credit - (1,767 ) Other (36 ) (27 ) State Income Taxes (11,908 ) 1,058 $ (110,111 ) $ 2,473 |
INCOME (LOSS) PER SHARE (Tables
INCOME (LOSS) PER SHARE (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of income per share computed on the weighted average of outstanding common shares | 2017 2016 Net Income (Loss) $ (178,941 ) $ 33,596 Preferred Dividend Requirements: 6% Prior Cumulative Preferred, $5 Par Value 60,000 60,000 5% Convertible Cumulative Preferred, $20 Par Value 68,072 68,072 Total Dividend Requirements 128,072 128,072 Net Loss - Common Stockholders $ (307,013 ) $ (94,476 ) 2017 2016 Weighted Average of Shares - Basic 969,834 969,834 Dilutive Effect of Contingently Issuable Shares 1,033,334 1,033,334 Weighted Average Shares – Diluted 2,003,168 2,003,168 Basic Loss per Share $ (0.32 ) $ (0.10 ) Diluted Loss per Share $ (0.32 ) $ (0.10 ) |
SUPPLEMENTAL DISCLOSURES OF C25
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental disclosures of cash flow information | 2017 2016 Cash Paid for: Interest $ 6,377 $ 4,623 Income Taxes 6,757 66,408 Non-Cash Transactions: Financing of New Vehicles - 62,681 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments | Year ending June 30: 2018 $ 78,000 2019 78,000 2020 78,000 2021 78,000 2022 78,000 Thereafter 214,500 $ 604,500 |
NATURE OF BUSINESS AND SIGNIF27
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Estimated useful lives (Details) | 12 Months Ended |
Jun. 30, 2017 | |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 39 years |
Machinery and equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 - 7 years |
Trucks and autos | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Office equipment | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 - 7 years |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | Lesser of estimated useful life or the lease term |
NATURE OF BUSINESS AND SIGNIF28
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES - Antidilutive effect of contingently issuable shares (Details 1) - shares | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares Issuable Upon Conversion of Cumulative Preferred Stock | 1,033,334 | 1,033,334 |
Prior Cumulative Preferred Stock - Series A | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares Issuable Upon Conversion of Cumulative Preferred Stock | 400,000 | 400,000 |
Prior Cumulative Preferred Stock - Series B | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares Issuable Upon Conversion of Cumulative Preferred Stock | 375,000 | 375,000 |
Cumulative Preferred Stock - Series A | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares Issuable Upon Conversion of Cumulative Preferred Stock | 222,133 | 222,133 |
Cumulative Preferred Stock - Series B | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares Issuable Upon Conversion of Cumulative Preferred Stock | 36,201 | 36,201 |
NATURE OF BUSINESS AND SIGNIF29
NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals) | 12 Months Ended | |
Jun. 30, 2017USD ($)DivisionSegment | Jun. 30, 2016USD ($) | |
Nature Of Business and Significant Accounting Policies [Abstract] | ||
Number of product divisions | Division | 2 | |
Number of reportable segments | Segment | 1 | |
Freight expense on goods shipped | $ 159,851 | $ 183,456 |
Advertising expense | $ 16,049 | $ 13,941 |
FORGIVABLE LOAN AND DEFERRED 30
FORGIVABLE LOAN AND DEFERRED INCOME (Detail Textuals) | 12 Months Ended | ||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2004USD ($)ft² | |
Line of Credit Facility [Line Items] | |||
Lease term of deferred revenue | 20 years | ||
Amortized deferred revenue into income for each period | $ (1,299) | $ (1,298) | |
Nodaway Valley Bank | Standby Letters of Credit | |||
Line of Credit Facility [Line Items] | |||
Economic development incentive, forgivable loan | $ 25,000 | ||
Term of forgivable loan | 5 years | ||
Loan rate per year | $ 5,000 | ||
Letter of credit, collateral amount | $ 25,000 | ||
Area of land occupying | ft² | 20,000 |
NOTES PAYABLE - Long-term debt
NOTES PAYABLE - Long-term debt (Details) - USD ($) | Jun. 30, 2017 | Jun. 30, 2016 |
Debt Instrument [Line Items] | ||
Total | $ 55,397 | $ 70,857 |
Less current portion | 16,133 | 15,460 |
Long-term portion | 39,264 | 55,397 |
Nodaway Valley Bank: $350,000 line-of-credit agreement expiring on January 4, 2018, with a variable interest rate at prime but not less than 5%. The line-of-credit is collateralized by substantially all assets of the Company. Management anticipates renewal of the line-of-credit agreement at similar terms upon expiration | ||
Debt Instrument [Line Items] | ||
Total | ||
Ford Credit: $705 monthly payments, interest of 5.8%; final payment due October 2021, secured by a vehicle | ||
Debt Instrument [Line Items] | ||
Total | 32,308 | 38,674 |
Toyota Credit: $364 monthly payments, interest of 3.5%; final payment due December 2020, secured by a vehicle | ||
Debt Instrument [Line Items] | ||
Total | 14,383 | 18,179 |
Ford Credit: $468 monthly payments, interest of 2.9%; final payment due January 2019, secured by a vehicle | ||
Debt Instrument [Line Items] | ||
Total | $ 8,706 | $ 14,004 |
NOTES PAYABLE - Long-term deb32
NOTES PAYABLE - Long-term debt (Parentheticals) (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Nodaway Valley Bank: $350,000 line-of-credit agreement expiring on January 4, 2018, with a variable interest rate at prime but not less than 5%. The line-of-credit is collateralized by substantially all assets of the Company. Management anticipates renewal of the line-of-credit agreement at similar terms upon expiration | ||
Debt Instrument [Line Items] | ||
Line-of-credit agreement, amount | $ 350,000 | $ 350,000 |
Interest rate, description | Variable interest rate at prime | Variable interest rate at prime |
Line of Credit Facility, Expiration date | Jan. 4, 2018 | Jan. 4, 2018 |
Line of credit facility, Basis for measurement | Prime | Prime |
Interest rate | 5.00% | 5.00% |
Ford Credit: $705 monthly payments, interest of 5.8%; final payment due October 2021, secured by a vehicle | ||
Debt Instrument [Line Items] | ||
Line-of-credit agreement, amount | $ 705 | $ 705 |
Notes payable, frequency | Monthly | Monthly |
Interest rate | 5.80% | 5.80% |
Maturity date | Oct. 31, 2021 | Oct. 31, 2021 |
Toyota Credit: $364 monthly payments, interest of 3.5%; final payment due December 2020, secured by a vehicle | ||
Debt Instrument [Line Items] | ||
Line-of-credit agreement, amount | $ 364 | $ 364 |
Notes payable, frequency | Monthly | Monthly |
Interest rate | 3.50% | 3.50% |
Maturity date | Dec. 31, 2020 | Dec. 31, 2020 |
Ford Credit: $468 monthly payments, interest of 2.9%; final payment due January 2019, secured by a vehicle | ||
Debt Instrument [Line Items] | ||
Line-of-credit agreement, amount | $ 468 | $ 468 |
Notes payable, frequency | Monthly | Monthly |
Interest rate | 2.90% | 2.90% |
Maturity date | Jan. 31, 2019 | Jan. 31, 2019 |
NOTES PAYABLE - Future minimum
NOTES PAYABLE - Future minimum payments (Details 1) - USD ($) | Jun. 30, 2017 | Jun. 30, 2016 |
Notes Payable [Abstract] | ||
2,018 | $ 16,133 | |
2,019 | 14,477 | |
2,020 | 11,798 | |
2,021 | 10,204 | |
2,022 | 2,785 | |
Total | $ 55,397 | $ 70,857 |
CAPITAL STOCK - Shares authoriz
CAPITAL STOCK - Shares authorized, issued, and outstanding (Details) | Jun. 30, 2017shares |
Class of Stock [Line Items] | |
Common Stock- Reserved for conversion of Preferred Shares Authorized | 2,000,000 |
Common Stock- Reserved for conversion of Preferred Shares Issued | 969,834 |
Common Stock- Reserved for conversion of Preferred Shares Outstanding | 969,834 |
6% Prior Convertible Cumulative Preferred Stock - Series A | |
Class of Stock [Line Items] | |
Preferred Shares Issued | 100,000 |
Preferred Shares Outstanding | 100,000 |
6% Prior Convertible Cumulative Preferred Stock - Series B | |
Class of Stock [Line Items] | |
Preferred Shares Issued | 100,000 |
Preferred Shares Outstanding | 100,000 |
5% Convertible Cumulative Preferred Stock - Series A | |
Class of Stock [Line Items] | |
Preferred Shares Issued | 58,533 |
Preferred Shares Outstanding | 58,533 |
5% Convertible Cumulative Preferred Stock - Series B | |
Class of Stock [Line Items] | |
Preferred Shares Issued | 9,539 |
Preferred Shares Outstanding | 9,539 |
6% Prior Cumulative Preferred, $5 par value | |
Class of Stock [Line Items] | |
Preferred Shares Authorized | 240,000 |
5% Convertible Cumulative Preferred, $20 par value | |
Class of Stock [Line Items] | |
Preferred Shares Authorized | 150,000 |
CAPITAL STOCK - Shares author35
CAPITAL STOCK - Shares authorized, issued, and outstanding (Parentheticals) (Details) | 12 Months Ended |
Jun. 30, 2017$ / shares | |
6% Prior Cumulative Preferred, $5 par value | |
Class of Stock [Line Items] | |
Preferred stock, par value (in dollars per share) | $ 5 |
Stated percentage of preferred stock | 6.00% |
5% Convertible Cumulative Preferred, $20 par value | |
Class of Stock [Line Items] | |
Preferred stock, par value (in dollars per share) | $ 20 |
Stated percentage of preferred stock | 5.00% |
CAPITAL STOCK - Shares author36
CAPITAL STOCK - Shares authorized, issued, and outstanding (Parentheticals 1) (Details) - $ / shares | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Equity [Abstract] | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Reserved for conversion of preferred stock (in shares) | 1,030,166 |
CAPITAL STOCK - Preferred Stock
CAPITAL STOCK - Preferred Stock dividends in arrears on a per share basis (Details 1) - $ / shares | Jun. 30, 2017 | Jun. 30, 2016 |
6% Prior Convertible Cumulative Preferred Stock - Series A | ||
Class of Stock [Line Items] | ||
Cumulative preferred stock dividends in arrears | $ 17.55 | $ 17.25 |
6% Prior Convertible Cumulative Preferred Stock - Series B | ||
Class of Stock [Line Items] | ||
Cumulative preferred stock dividends in arrears | 17.10 | 16.80 |
5% Convertible Cumulative Preferred Stock - Series A | ||
Class of Stock [Line Items] | ||
Cumulative preferred stock dividends in arrears | 67.50 | 66.75 |
5% Convertible Cumulative Preferred Stock - Series B | ||
Class of Stock [Line Items] | ||
Cumulative preferred stock dividends in arrears | $ 67.50 | $ 66.75 |
CAPITAL STOCK (Detail Textuals)
CAPITAL STOCK (Detail Textuals) - USD ($) | Jun. 30, 2017 | Jun. 30, 2016 |
Equity [Abstract] | ||
Total cumulative preferred stock dividends in arrears | $ 8,076,878 | $ 7,948,806 |
CAPITAL STOCK (Detail Textuals
CAPITAL STOCK (Detail Textuals 1) | 12 Months Ended |
Jun. 30, 2017$ / sharesshares | |
6% Prior Cumulative Preferred, $5 par value | |
Class of Stock [Line Items] | |
Redemption price per share (in dollars per share) | $ 5.25 |
Preferred stock, liquidation preference per share (in dollars per share) | $ 5.25 |
6% Prior Convertible Cumulative Preferred Stock - Series A | |
Class of Stock [Line Items] | |
Number of common stock exchanged for each preferred stock held | shares | 4 |
6% Prior Convertible Cumulative Preferred Stock - Series B | |
Class of Stock [Line Items] | |
Number of common stock exchanged for each preferred stock held | shares | 3.75 |
5% Convertible Cumulative Preferred, $20 par value | |
Class of Stock [Line Items] | |
Redemption price per share (in dollars per share) | $ 21 |
Preferred stock, liquidation preference per share (in dollars per share) | $ 20 |
Number of common stock exchanged for each preferred stock held | shares | 3.795 |
INCOME TAXES - Sources of defer
INCOME TAXES - Sources of deferred tax assets and liability (Details) - USD ($) | Jun. 30, 2017 | Jun. 30, 2016 |
Deferred Income Tax Assets: | ||
Net Operating Loss Carryover | $ 83,694 | |
Trade Receivables | 5,251 | 6,310 |
Deferred Income | 3,837 | 4,332 |
Inventories | 952 | 1,223 |
Contribution Carryover | 572 | |
Total Deferred Income Tax Assets | 94,306 | 11,865 |
Deferred Income Tax Liability: | ||
Property and Equipment | (67,143) | (94,778) |
NET DEFERRED INCOME TAX ASSET (LIABILITY) | $ 27,163 | $ (82,913) |
INCOME TAXES - Net deferred tax
INCOME TAXES - Net deferred tax assets (liability) (Details 1) - USD ($) | Jun. 30, 2017 | Jun. 30, 2016 |
Income Tax Disclosure [Abstract] | ||
Current Deferred Income Tax Asset | $ 90,469 | $ 7,533 |
Noncurrent Deferred Income Tax Liability | (63,306) | (90,446) |
NET DEFERRED INCOME TAX ASSET (LIABILITY) | $ 27,163 | $ (82,913) |
INCOME TAXES - Provision for in
INCOME TAXES - Provision for income taxes (Details 2) - USD ($) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||
Current Income Tax Expense (Credit) | $ (35) | $ 11,138 |
Deferred Income Tax Credit | (110,076) | (8,665) |
Provision (credit) for income taxes | $ (110,111) | $ 2,473 |
INCOME TAXES - Effective income
INCOME TAXES - Effective income tax rate reconciliation (Details 3) - USD ($) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||
Computed at Federal Statutory Rate of 34% | $ (98,278) | $ 12,309 |
Increase (Decrease) in Income Taxes Resulting from: | ||
Non-Deductible Expenses | 111 | 630 |
Federal Tax Adjustment Due to Actual Rate vs. Statutory Rate | (9,730) | |
Domestic Production Activities Deduction Credit | (1,767) | |
Other | (36) | (27) |
State Income Taxes | (11,908) | 1,058 |
Provision (credit) for income taxes | $ (110,111) | $ 2,473 |
INCOME TAXES - Effective inco44
INCOME TAXES - Effective income tax rate reconciliation (Parentheticals) (Details 3) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory income tax rate, percent | 34.00% | 34.00% |
INCOME TAX (Detail Textuals)
INCOME TAX (Detail Textuals) | Jun. 30, 2017USD ($) |
Income Tax Disclosure [Abstract] | |
Operating loss carryforwards | $ 219,526 |
LOSS PER SHARE (Details)
LOSS PER SHARE (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Class of Stock [Line Items] | ||
Net Income | $ (178,941) | $ 33,596 |
Preferred Dividend Requirements: | ||
Total Dividend Requirements | 128,072 | 128,072 |
Net Income (Loss) - Common Stockholders | $ (307,013) | $ (94,476) |
Weighted Average of Shares - Basic (in shares) | 969,834 | 969,834 |
Dilutive Effect of Contingently Issuable Shares (in shares) | 1,033,334 | 1,033,334 |
Weighted Average Shares - Diluted (in shares) | 2,003,168 | 2,003,168 |
Basic Loss per Share | $ (0.32) | $ (0.10) |
Diluted Loss per Share | $ (0.32) | $ (0.10) |
6% Prior Cumulative Preferred, $5 par value | ||
Preferred Dividend Requirements: | ||
Total Dividend Requirements | $ 60,000 | $ 60,000 |
5% Convertible Cumulative Preferred, $20 par value | ||
Preferred Dividend Requirements: | ||
Total Dividend Requirements | $ 68,072 | $ 68,072 |
LOSS PER SHARE (Parentheticals)
LOSS PER SHARE (Parentheticals) (Details) | 12 Months Ended |
Jun. 30, 2017$ / shares | |
6% Prior Cumulative Preferred, $5 par value | |
Class of Stock [Line Items] | |
Stated percentage of preferred stock | 6.00% |
Preferred stock, par value (in dollars per share) | $ 5 |
5% Convertible Cumulative Preferred, $20 par value | |
Class of Stock [Line Items] | |
Stated percentage of preferred stock | 5.00% |
Preferred stock, par value (in dollars per share) | $ 20 |
INCOME (LOSS) PER SHARE (Detail
INCOME (LOSS) PER SHARE (Details 1) | Jun. 30, 2017USD ($) |
Earnings Per Share [Abstract] | |
Unused operating loss | $ 219,526 |
SUPPLEMENTAL DISCLOSURES OF C49
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash Paid for: | ||
Interest Paid | $ 6,377 | $ 4,623 |
Income Taxes | 6,757 | 66,408 |
Non-Cash Transactions: | ||
Financing of New Vehicles | $ 62,681 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Future minimum lease payments (Details) | Jun. 30, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 78,000 |
2,019 | 78,000 |
2,020 | 78,000 |
2,021 | 78,000 |
2,022 | 78,000 |
Thereafter | 214,500 |
Future minimum payments due, Total | $ 604,500 |
COMMITMENTS AND CONTINGENCIES51
COMMITMENTS AND CONTINGENCIES (Detail Textuals) | 12 Months Ended | |
Jun. 30, 2017USD ($)Customer | Jun. 30, 2016USD ($) | |
Long-term Purchase Commitment [Line Items] | ||
Additional lease period | 5 years | |
Lease payments per month | $ 6,500 | |
Percentage of base rent to be increased | 30.00% | |
Rental expense | $ 78,000 | $ 78,000 |
Raw material | ||
Long-term Purchase Commitment [Line Items] | ||
Raw materials purchase commitments, number of vendors | Customer | 4 | |
Raw materials purchase commitments | $ 81,000 |
CONCENTRATION OF CREDIT RISK (D
CONCENTRATION OF CREDIT RISK (Detail Textuals) - Customer concentration risk | 12 Months Ended | |
Jun. 30, 2017CustomerVendor | Jun. 30, 2016CustomerVendor | |
Gross sales | ||
Concentration Risk [Line Items] | ||
Number of customers accounted credit risk | Customer | 2 | 2 |
Customer concentration risk, percentage | 54.00% | 58.00% |
Trade receivables | ||
Concentration Risk [Line Items] | ||
Number of customers accounted credit risk | Vendor | 2 | 2 |
Customer concentration risk, percentage | 52.00% | 60.00% |