Document Information Statement
Document Information Statement - shares | 9 Months Ended | |
Mar. 31, 2021 | May 10, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --06-30 | |
Document Transition Report | false | |
Entity File Number | 0-3295 | |
Entity Registrant Name | KOSS CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 4129 North Port Washington Avenue | |
Entity Address, City or Town | Milwaukee | |
Entity Address, State or Province | WI | |
Entity Tax Identification Number | 39-1168275 | |
Entity Address, Postal Zip Code | 53212 | |
City Area Code | 414 | |
Local Phone Number | 964-5000 | |
Title of 12(b) Security | Common Stock, par value $0.005 per share | |
Trading Symbol | KOSS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 8,516,823 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000056701 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 6,028,952 | $ 3,999,409 |
Accounts receivable, less allowance for doubtful accounts of $50,555 and $74,082, respectively | 1,961,704 | 2,317,064 |
Inventories, net | 6,857,171 | 5,538,794 |
Prepaid expenses and other current assets | 480,129 | 267,647 |
Income taxes receivable | 10,554 | 14,622 |
Total current assets | 15,338,510 | 12,137,536 |
Equipment and leasehold improvements, net | 1,307,307 | 983,641 |
Other assets: | ||
Operating lease right-of-use assets | 2,375,797 | 2,582,402 |
Cash surrender value of life insurance | 7,150,681 | 6,876,827 |
Total other assets | 9,526,478 | 9,459,229 |
Total assets | 26,172,295 | 22,580,406 |
Current liabilities: | ||
Accounts payable | 950,303 | 827,705 |
Accrued liabilities | 811,014 | 580,099 |
Deferred revenue | 568,177 | 423,639 |
Operating lease liability | 285,901 | 276,947 |
Short-term debt | 506,700 | |
Total current liabilities | 2,615,395 | 2,615,090 |
Long-term liabilities: | ||
Deferred compensation | 2,393,982 | 2,333,482 |
Deferred revenue | 175,784 | 170,281 |
Operating lease liability | 2,089,896 | 2,305,455 |
Total long-term liabilities | 4,659,662 | 4,809,218 |
Total liabilities | 7,275,057 | 7,424,308 |
Stockholders' equity: | ||
Common stock, $0.005 par value, authorized 20,000,000 shares; issued and outstanding 8,516,823 and 7,404,831, respectively | 42,584 | 37,024 |
Paid in capital | 10,456,658 | 6,882,729 |
Retained earnings | 8,397,996 | 8,236,345 |
Total stockholders' equity | 18,897,238 | 15,156,098 |
Total liabilities and stockholders' equity | $ 26,172,295 | $ 22,580,406 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Condensed Consolidated Balance Sheets [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 50,555 | $ 74,082 |
Common stock, par value (in dollars per share) | $ 0.005 | $ 0.005 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 8,516,823 | 7,404,831 |
Common stock, shares outstanding (in shares) | 8,516,823 | 7,404,831 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Condensed Consolidated Statements of Operations [Abstract] | ||||
Net sales | $ 3,987,452 | $ 4,789,441 | $ 14,125,537 | $ 14,362,862 |
Cost of goods sold | 2,569,900 | 3,199,665 | 9,453,860 | 10,061,544 |
Gross profit | 1,417,552 | 1,589,776 | 4,671,677 | 4,301,318 |
Selling, general and administrative expenses | 2,271,615 | 1,687,676 | 5,393,211 | 4,938,983 |
(Loss) income from operations | (854,063) | (97,900) | (721,534) | (637,665) |
Other income | 378,805 | 885,505 | ||
Interest income | 1,139 | 6,631 | 1,748 | 19,955 |
(Loss) income before income tax provision | (474,119) | (91,269) | 165,719 | (617,710) |
Income tax provision | 49 | 6,104 | 4,068 | 6,125 |
Net (loss) income | $ (474,168) | $ (97,373) | $ 161,651 | $ (623,835) |
(Loss) income per common share: | ||||
Basic (in dollars per share) | $ (0.06) | $ (0.01) | $ 0.02 | $ (0.08) |
Diluted (in dollars per share) | $ (0.06) | $ (0.01) | $ 0.02 | $ (0.08) |
Weighted-average number of shares: | ||||
Basic (in shares) | 8,100,730 | 7,404,831 | 7,633,722 | 7,404,831 |
Diluted (in shares) | 8,100,730 | 7,404,831 | 9,188,002 | 7,404,831 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating activities: | ||
Net income (loss) | $ 161,651 | $ (623,835) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Recovery of doubtful accounts | (171) | (8,938) |
Depreciation of equipment and leasehold improvements | 222,998 | 258,401 |
Stock-based compensation expense | 464,032 | 428,228 |
Deferred income taxes | 13,276 | |
Change in cash surrender value of life insurance | (169,963) | (156,398) |
Change in deferred compensation accrual | 173,000 | 37,016 |
Deferred compensation paid | (112,500) | (112,500) |
Other income - SBA loan forgiveness | (506,700) | |
Net changes in operating assets and liabilities: | ||
Accounts receivable | 355,531 | 110,705 |
Inventories | (1,318,377) | 1,859,887 |
Prepaid expenses and other current assets | (212,482) | (254,612) |
Income taxes receivable | 4,068 | 35,426 |
Accounts payable | 122,598 | (1,027,292) |
Accrued liabilities | 230,915 | (15,616) |
Deferred revenue | 150,041 | (203,960) |
Net cash (used in) provided by operating activities | (435,359) | 339,788 |
Investing activities: | ||
Purchase of equipment and leasehold improvements | (546,664) | (391,151) |
Life insurance premiums paid | (103,891) | (112,956) |
Net cash (used in) investing activities | (650,555) | (504,107) |
Financing activities: | ||
Proceeds from exercise of stock options | 3,115,457 | |
Net cash provided by financing activities | 3,115,457 | |
Net increase (decrease) in cash and cash equivalents | 2,029,543 | (164,319) |
Cash and cash equivalents at beginning of period | 3,999,409 | 2,228,282 |
Cash and cash equivalents at end of period | $ 6,028,952 | $ 2,063,963 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock [Member] | Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Jun. 30, 2019 | 7,404,831 | |||
Balance at Jun. 30, 2019 | $ 37,024 | $ 6,333,135 | $ 8,701,942 | $ 15,072,101 |
Net income (loss) | (623,835) | (623,835) | ||
Stock-based compensation expense | 428,228 | 428,228 | ||
Balance at Mar. 31, 2020 | $ 37,024 | 6,761,363 | 8,078,107 | 14,876,494 |
Balance (in shares) at Mar. 31, 2020 | 7,404,831 | |||
Balance (in shares) at Dec. 31, 2019 | 7,404,831 | |||
Balance at Dec. 31, 2019 | $ 37,024 | 6,618,029 | 8,175,480 | 14,830,533 |
Net income (loss) | (97,373) | (97,373) | ||
Stock-based compensation expense | 143,334 | 143,334 | ||
Balance at Mar. 31, 2020 | $ 37,024 | 6,761,363 | 8,078,107 | $ 14,876,494 |
Balance (in shares) at Mar. 31, 2020 | 7,404,831 | |||
Balance (in shares) at Jun. 30, 2020 | 7,404,831 | 7,404,831 | ||
Balance at Jun. 30, 2020 | $ 37,024 | 6,882,729 | 8,236,345 | $ 15,156,098 |
Net income (loss) | 161,651 | 161,651 | ||
Stock-based compensation expense | 464,032 | 464,032 | ||
Stock option exercises (in shares) | 1,111,992 | |||
Stock option exercises | $ 5,560 | 3,109,897 | 3,115,457 | |
Balance at Mar. 31, 2021 | $ 42,584 | 10,456,658 | 8,397,996 | $ 18,897,238 |
Balance (in shares) at Mar. 31, 2021 | 8,516,823 | 8,516,823 | ||
Balance (in shares) at Dec. 31, 2020 | 7,447,489 | |||
Balance at Dec. 31, 2020 | $ 37,237 | 7,281,190 | 8,872,164 | $ 16,190,591 |
Net income (loss) | (474,168) | (474,168) | ||
Stock-based compensation expense | 154,275 | 154,275 | ||
Stock option exercises (in shares) | 1,069,334 | |||
Stock option exercises | $ 5,347 | 3,021,193 | 3,026,540 | |
Balance at Mar. 31, 2021 | $ 42,584 | $ 10,456,658 | $ 8,397,996 | $ 18,897,238 |
Balance (in shares) at Mar. 31, 2021 | 8,516,823 | 8,516,823 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A) BASIS OF PRESENTATION The condensed consolidated balance sheets as of March 31, 2021 and June 30, 2020, the condensed consolidated statements of operations for the three and nine months ended March 31, 2021 and 2020, the condensed consolidated statements of cash flows for the nine months ended March 31, 2021 and 2020, and the condensed consolidated statements of stockholders' equity for the three and nine months ended March 31, 2021 and 2020, have been prepared by the Company in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and have not been audited. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for all periods presented have been made. The operating results for any interim period are not necessarily indicative of the operating results that may be experienced for the full fiscal year. Certain information and footnote disclosure normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2020. The preparation of financial statements in conformity with U.S. GAAP requires the company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses. Significant estimates and assumptions are used for, but are not limited to, allowances for doubtful accounts, reserves for excess and obsolete inventories, long-lived and intangible assets, income tax valuation allowance , non-cash stock-based compensation and deferred compensation. Actual results could differ from the Company's estimates. B) INCOME TAXES A state tax provision of $49 and $4,068 was recorded for the three and nine months ended March 31, 2021, respectively, for states where there is no net operating loss carryforward. For the three and nine months ended March 31, 2020, the state tax provision was $6,104 and $6,125 , respectively. The federal income tax expense was zero for the three and nine months ended March 31, 2021 and 2020. In the three months ended March 31, 2021, stock option exercises resulted in tax deductible compensation expense of approximately $29,300,000 . The deduction of this stock option exercise compensation expense will cause a tax loss in the year ended June 30, 2021, which will be carried forward to future tax years. The expected tax loss carryforward will create a deferred tax asset of approximately $7,400,000 . The future realization of this deferred tax asset is uncertain. The valuation allowance was increased to fully offset the deferred tax asset. C) OTHER INCOME On November 3, 2020, the Company was notified that the full $506,700 of the SBA Loan (see Note 3) was forgiven. The loan forgiveness has been treated as other income and shown as a separate line on the Condensed Consolidated Statements of Operations. The Company followed the debt and debt extinguishment accounting model for the SBA Loan forgiveness. In the three months ended March 31, 2021, the Company received $378,805 from a director in settlement of a short sale under Rule 144. |
Inventories
Inventories | 9 Months Ended |
Mar. 31, 2021 | |
Inventories [Abstract] | |
Inventories | 2. INVENTORIES The components of inventories were as follows: March 31, 2021 June 30, 2020 Raw materials $ 1,947,044 $ 1,953,031 Finished goods 6,547,993 5,149,200 Inventories, gross 8,495,037 7,102,231 Reserve for obsolete inventory (1,637,866) (1,563,437) Inventories, net $ 6,857,171 $ 5,538,794 |
Credit Facility and SBA Loan
Credit Facility and SBA Loan | 9 Months Ended |
Mar. 31, 2021 | |
Credit Facility and SBA Loan [Abstract] | |
Credit Facility and SBA Loan | 3. CREDIT FACILITY AND SBA LOAN On May 14, 2019, the Company entered into a secured credit facility ("Credit Agreement") with Town Bank (“Lender”) for a two -year term expiring on May 14, 2021. The Credit Agreement provides for a $5,000,000 revolving secured credit facility with an interest rate of 1.50% over LIBOR. The Credit Agreement also provides for letters of credit for the benefit of the Company of up to a sublimit of $1,000,000 . There are no unused line fees in the credit facility. On January 28, 2021, the Credit Agreement was amended to extend the expiration to October 31, 2022, and to change the interest rate to Wall Street Journal Prime less 1.50% . The Company and the Lender also entered into a General Business Security Agreement dated May 14, 2019 under which the Company granted the Lender a security interest in substantially all of the Company’s assets in connection with the Company’s obligations under the Credit Agreement. The Credit Agreement contains certain affirmative and negative covenants customary for financings of this type. The negative covenants include restrictions on other indebtedness, liens, fundamental changes, certain investments, disposition of assets, mergers and liquidations, among other restrictions. As of March 31, 2021, the Company was in compliance with all covenants related to the Credit Agreement. As of March 31, 2021, and June 30, 2020, there were no outstanding borrowings on the facility. On April 13, 2020, the Company received an unsecured loan (the "SBA Loan") for $506,700 under the Small Business Administration ("SBA") Paycheck Protection Program (the “PPP”) of the CARES Act through Town Bank. On November 3, 2020, the Company was notified that the full principal amount of $506,700 has been forgiven and is recorded as other income in the Condensed Consolidated Statement of Operations . |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Mar. 31, 2021 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 4. REVENUE RECOGNITION The Company disaggregates it's net sales by geographical location as it believes it best depicts how the nature, timing and uncertainty of net sales and cash flows are affected by economic factors. The following table summarizes net sales by geographical location: Three Months Ended Nine Months Ended March 31, March 31, 2021 2020 2021 2020 United States $ 2,693,041 $ 4,227,492 $ 10,291,957 $ 11,869,459 Export 1,294,411 561,949 3,833,580 2,493,403 Net Sales $ 3,987,452 $ 4,789,441 $ 14,125,537 $ 14,362,862 Deferred revenue relates primarily to consumer and customer warranties. These constitute future performance obligations and the Company defers revenue related to these future performance obligations. The Company recognized revenue, which was included in the deferred revenue liability at the beginning of the periods, of $271,179 and $367,198 in the nine months ended March 31, 2021 and 2020, respectively, for performance obligations related to consumer and customer warranties. The deferred revenue liability was $808,488 as of June 30, 2019. The Company estimates that the deferred revenue performance obligations are satisfied within one to three years and therefore uses that same time frame for recognition of the deferred revenue. |
(Loss) Income Per Common and Co
(Loss) Income Per Common and Common Stock Equivalent Share | 9 Months Ended |
Mar. 31, 2021 | |
(Loss) Income Per Common and Common Stock Equivalent Share [Abstract] | |
(Loss) Income Per Common and Common Stock Equivalent Share | 5. (LOSS) INCOME PER COMMON AND COMMON STOCK EQUIVALENT SHARE Basic (loss) income per share is computed based on the weighted-average number of common shares outstanding. Diluted (loss) income per common share is calculated assuming the exercise of stock options except where the result would be anti-dilutive. The following table reconciles the numerator and denominator used to calculate basic and diluted (loss) income per share: Three Months Ended March 31, Nine Months Ended March 31, 2021 2020 2021 2020 Numerator Net (loss) income $ (474,168) $ (97,373) $ 161,651 $ (623,835) Denominator Weighted average shares, basic 8,100,730 7,404,831 7,633,722 7,404,831 Dilutive effect of stock compensation awards (1) — — 1,554,280 — Diluted shares 8,100,730 7,404,831 9,188,002 7,404,831 Net (loss) income attributable to common shareholders per share: Basic $ (0.06) $ (0.01) $ 0.02 $ (0.08) Diluted $ (0.06) $ (0.01) $ 0.02 $ (0.08) (1) Excludes approximately 2,226,184 and 2,802,765 weighted average stock options for the three months ended March 31, 2021 and 2020 , respectively, as the impact of such awards was anti-dilutive. For the nine months ended March 31, 2021 and 2020, 0 and 2,807,002 weighted average stock options were excluded, respectively. |
Leases
Leases | 9 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | 6. LEASES The Company leases its facility in Milwaukee, Wisconsin from Koss Holdings, LLC, which is wholly-owned by the former Chairman. On January 5, 2017, the lease was renewed for a period of five years, ending June 30, 2023, and is being accounted for as an operating lease. The lease extension maintained the rent at a fixed rate of $380,000 per year and included an option to renew at the same rate for an additional five years ending June 30, 2028. The Company is responsible for all property maintenance, insurance, taxes and other normal expenses related to ownership. |
Legal Matters
Legal Matters | 9 Months Ended |
Mar. 31, 2021 | |
Legal Matters [Abstract] | |
Legal Matters | 7. LEGAL MATTERS As of March 31, 2021, the Company is involved in the following matters described below: • In July 2020, the Company filed complaints in United States District Court against each of Apple Inc. , Bose Corporation, PEAG, LLC d/b/a JLab Audio, Plantronics, Inc. and Polycom, Inc., and Skullcandy, Inc . The complaints allege infringement on the Company’s patents relating to its wireless audio technology. In the event that a monetary award or judgment is received by the Company in connection with these complaints, all or portions of such amounts may be due to third parties. The Company does not expect to incur additional fees and costs related to these lawsuits that will have a material impact to its financial statements. Depending on the response to and the underlying results of the enforcement program, the Company may continue to litigate its claims, enter into licensing arrangements or reach some other outcome potentially advantageous to its competitive position. • Early in fiscal year 2020 the Company was notified by One E-Way, Inc. that some of the Company's wireless products may infringe on certain One E-Way patents. No lawsuits involving these allegations have yet been filed and served on the Company. The ultimate resolution of these matters is not determinable unless otherwise noted. We also are subject to a variety of other claims and suits that arise from time to time in the ordinary course of our business. Although management currently believes that resolving these claims against us, individually or in aggregate, will not have a material adverse impact on our Condensed Consolidated Financial Statements, these matters are subject to inherent uncertainties and management’s view of these matters may change in the future. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2021 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | A) BASIS OF PRESENTATION The condensed consolidated balance sheets as of March 31, 2021 and June 30, 2020, the condensed consolidated statements of operations for the three and nine months ended March 31, 2021 and 2020, the condensed consolidated statements of cash flows for the nine months ended March 31, 2021 and 2020, and the condensed consolidated statements of stockholders' equity for the three and nine months ended March 31, 2021 and 2020, have been prepared by the Company in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and have not been audited. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for all periods presented have been made. The operating results for any interim period are not necessarily indicative of the operating results that may be experienced for the full fiscal year. Certain information and footnote disclosure normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2020. The preparation of financial statements in conformity with U.S. GAAP requires the company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses. Significant estimates and assumptions are used for, but are not limited to, allowances for doubtful accounts, reserves for excess and obsolete inventories, long-lived and intangible assets, income tax valuation allowance , non-cash stock-based compensation and deferred compensation. Actual results could differ from the Company's estimates. |
Income Taxes | B) INCOME TAXES A state tax provision of $49 and $4,068 was recorded for the three and nine months ended March 31, 2021, respectively, for states where there is no net operating loss carryforward. For the three and nine months ended March 31, 2020, the state tax provision was $6,104 and $6,125 , respectively. The federal income tax expense was zero for the three and nine months ended March 31, 2021 and 2020. In the three months ended March 31, 2021, stock option exercises resulted in tax deductible compensation expense of approximately $29,300,000 . The deduction of this stock option exercise compensation expense will cause a tax loss in the year ended June 30, 2021, which will be carried forward to future tax years. The expected tax loss carryforward will create a deferred tax asset of approximately $7,400,000 . The future realization of this deferred tax asset is uncertain. The valuation allowance was increased to fully offset the deferred tax asset. |
Other Income | C) OTHER INCOME On November 3, 2020, the Company was notified that the full $506,700 of the SBA Loan (see Note 3) was forgiven. The loan forgiveness has been treated as other income and shown as a separate line on the Condensed Consolidated Statements of Operations. The Company followed the debt and debt extinguishment accounting model for the SBA Loan forgiveness. In the three months ended March 31, 2021, the Company received $378,805 from a director in settlement of a short sale under Rule 144. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Inventories [Abstract] | |
Components of Inventories | March 31, 2021 June 30, 2020 Raw materials $ 1,947,044 $ 1,953,031 Finished goods 6,547,993 5,149,200 Inventories, gross 8,495,037 7,102,231 Reserve for obsolete inventory (1,637,866) (1,563,437) Inventories, net $ 6,857,171 $ 5,538,794 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | Three Months Ended Nine Months Ended March 31, March 31, 2021 2020 2021 2020 United States $ 2,693,041 $ 4,227,492 $ 10,291,957 $ 11,869,459 Export 1,294,411 561,949 3,833,580 2,493,403 Net Sales $ 3,987,452 $ 4,789,441 $ 14,125,537 $ 14,362,862 |
(Loss) Income Per Common and _2
(Loss) Income Per Common and Common Stock Equivalent Share (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
(Loss) Income Per Common and Common Stock Equivalent Share [Abstract] | |
(Loss) Income Per Common and Common Stock Equivalent Share | Three Months Ended March 31, Nine Months Ended March 31, 2021 2020 2021 2020 Numerator Net (loss) income $ (474,168) $ (97,373) $ 161,651 $ (623,835) Denominator Weighted average shares, basic 8,100,730 7,404,831 7,633,722 7,404,831 Dilutive effect of stock compensation awards (1) — — 1,554,280 — Diluted shares 8,100,730 7,404,831 9,188,002 7,404,831 Net (loss) income attributable to common shareholders per share: Basic $ (0.06) $ (0.01) $ 0.02 $ (0.08) Diluted $ (0.06) $ (0.01) $ 0.02 $ (0.08) (1) Excludes approximately 2,226,184 and 2,802,765 weighted average stock options for the three months ended March 31, 2021 and 2020 , respectively, as the impact of such awards was anti-dilutive. For the nine months ended March 31, 2021 and 2020, 0 and 2,807,002 weighted average stock options were excluded, respectively. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | Nov. 03, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2021 |
Operating Loss Carryforwards [Line Items] | ||||||
Income Tax Expense (Benefit) | $ 49 | $ 6,104 | $ 4,068 | $ 6,125 | ||
Proceeds From Short Sale, Rule 144 | 378,805 | |||||
Operating Loss Carryforwards | 7,400,000 | 7,400,000 | ||||
Forecast [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Share based tax expense | $ 29,300,000 | |||||
State and Local Jurisdiction [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Income Tax Expense (Benefit) | 49 | 6,104 | 4,068 | 6,125 | ||
Domestic Tax Authority [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Income Tax Expense (Benefit) | $ 0 | $ 0 | $ 0 | $ 0 | ||
Town Bank [Member] | SBA Loan [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Debt forgiven | $ 506,700 |
Inventories (Details)
Inventories (Details) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Inventories [Abstract] | ||
Raw materials | $ 1,947,044 | $ 1,953,031 |
Finished goods | 6,547,993 | 5,149,200 |
Inventories, gross | 8,495,037 | 7,102,231 |
Reserve for obsolete inventory | (1,637,866) | (1,563,437) |
Inventories, net | $ 6,857,171 | $ 5,538,794 |
Credit Facility and SBA Loan (D
Credit Facility and SBA Loan (Details) - Town Bank [Member] - USD ($) | Nov. 03, 2020 | Mar. 31, 2021 | Jun. 30, 2020 | Apr. 13, 2020 |
SBA Loan [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Principal amount | $ 506,700 | |||
Debt forgiven | $ 506,700 | |||
Credit Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Term (Year) | 2 years | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.00% | |||
Long-term Line of Credit, Total | $ 0 | $ 0 | ||
Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 | |||
Credit Agreement [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||
Credit Agreement [Member] | Letter of Credit [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000 | |||
Amended Credit Agreement [Member] | Revolving Credit Facility [Member] | Prime Rate [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2019 | |
Contract with Customer, Liability, Total | $ 271,179 | $ 367,198 | |
Contract with Customer, Liability, Total | $ 808,488 | ||
Minimum [Member] | |||
Contract with Customer, Liability, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year) | 1 year | ||
Maximum [Member] | |||
Contract with Customer, Liability, Remaining Performance Obligation, Expected Timing of Satisfaction, Period (Year) | 3 years |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of Revenue) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 3,987,452 | $ 4,789,441 | $ 14,125,537 | $ 14,362,862 |
United States [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 2,693,041 | 4,227,492 | 10,291,957 | 11,869,459 |
Export [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 1,294,411 | $ 561,949 | $ 3,833,580 | $ 2,493,403 |
(Loss) Income Per Common and _3
(Loss) Income Per Common and Common Stock Equivalent Share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
(Loss) Income Per Common and Common Stock Equivalent Share [Abstract] | ||||
Net (loss) income | $ (474,168) | $ (97,373) | $ 161,651 | $ (623,835) |
Weighted average shares, basic (in shares) | 8,100,730 | 7,404,831 | 7,633,722 | 7,404,831 |
Dilutive effect of stock compensation awards (in shares) | 1,554,280 | |||
Diluted shares (in shares) | 8,100,730 | 7,404,831 | 9,188,002 | 7,404,831 |
Basic (in dollars per share) | $ (0.06) | $ (0.01) | $ 0.02 | $ (0.08) |
Diluted (in dollars per share) | $ (0.06) | $ (0.01) | $ 0.02 | $ (0.08) |
Anti-dilutive shares | 2,226,184 | 2,802,765 | 0 | 2,807,002 |
Leases (Details)
Leases (Details) | 9 Months Ended |
Mar. 31, 2021USD ($) | |
Lessee, Lease, Description [Line Items] | |
Lease Extension Per Year | $ 380,000 |
Lessee, Operating Lease, Renewal Term (Year) | 5 years |
Additional Renewal [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Renewal Term (Year) | 5 years |
Legal Matters (Details)
Legal Matters (Details) | 9 Months Ended |
Mar. 31, 2021item | |
Legal Matters [Abstract] | |
Number of lawsuits | 0 |