Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Aug. 19, 2019 | Dec. 31, 2018 | |
Document Information [Line Items] | |||
Entity Registrant Name | KOSS CORP | ||
Entity Central Index Key | 0000056701 | ||
Trading Symbol | koss | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Common Stock, Shares Outstanding (in shares) | 7,404,831 | ||
Entity Public Float | $ 4,995,005 | ||
Entity Shell Company | false | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Title of 12(b) Security | Common Stock |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 | [2] |
Current assets: | |||
Cash and cash equivalents | $ 2,228,282 | $ 1,081,533 | [1] |
Accounts receivable, less allowance for doubtful accounts of $2,617 and $51,854, respectively | 3,655,143 | 4,709,745 | |
Inventories | 6,851,448 | 6,138,679 | |
Prepaid expenses and other current assets | 133,889 | 206,776 | |
Income taxes receivable | 45,660 | 32,375 | |
Total current assets | 12,914,422 | 12,169,108 | |
Equipment and leasehold improvements, net | 890,110 | 1,132,105 | |
Other assets: | |||
Deferred income taxes | 13,276 | [3] | |
Operating lease right-of-use asset | 2,847,846 | 3,102,263 | |
Cash surrender value of life insurance | 6,569,628 | 6,374,372 | |
Total other assets | 9,430,750 | 9,476,635 | |
Total assets | 23,235,282 | 22,777,848 | |
Current liabilities: | |||
Accounts payable | 1,436,373 | 1,429,491 | |
Accrued liabilities | 650,513 | 788,961 | [4] |
Deferred revenue | 645,470 | 690,905 | |
Operating lease liability | 265,443 | 254,418 | |
Total current liabilities | 2,997,799 | 3,163,775 | |
Long-term liabilities: | |||
Deferred compensation | 2,419,962 | 2,394,009 | |
Deferred revenue | 163,018 | 168,465 | |
Operating lease liability | 2,582,402 | 2,847,845 | |
Total long-term liabilities | 5,165,382 | 5,410,319 | |
Total liabilities | 8,163,181 | 8,574,094 | |
Stockholders' equity: | |||
Common stock, $0.005 par value, authorized 20,000,000 shares; issued and outstanding 7,404,831 and 7,382,706 shares, respectively | 37,024 | 36,914 | |
Paid in capital | 6,186,393 | 5,752,270 | |
Retained earnings | 8,848,684 | 8,414,570 | |
Total stockholder' equity | 15,072,101 | 14,203,754 | [5] |
Total liabilities and stockholders' equity | $ 23,235,282 | $ 22,777,848 | |
[1] | As adjusted for the retrospective adoption of ASC 606 | ||
[2] | As adjusted for the retrospective adoption of ASC 606 and ASC 842 | ||
[3] | As adjusted for the retrospective adoption of ASC 606 and ASC 842 | ||
[4] | As adjusted for retrospective adoption of ASC 606 | ||
[5] | As adjusted for the retrospective adoption of ASC 606 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 | |
Accounts receivable, allowance for doubtful accounts | $ 2,617 | $ 55,872 | [1] |
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) | 7,404,831 | 7,382,706 | |
Common stock, shares outstanding (in shares) | 7,404,831 | 7,382,706 | |
[1] | As adjusted for the retrospective adoption of ASC 606 and ASC 842 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | [1] | |
Net sales | $ 21,842,097 | $ 23,522,631 | [2] |
Cost of goods sold | 15,022,223 | 16,966,633 | |
Gross profit | 6,819,874 | 6,555,998 | |
Selling, general and administrative expenses | 6,415,441 | 6,920,156 | |
Income (loss) from operations | 404,433 | (364,158) | |
Interest (income) expense | (3,178) | 5,218 | |
Income (loss) before income tax provision | 407,611 | (369,376) | |
Income tax (benefit) provision | (26,503) | 3,041,844 | [3],[4] |
Net income (loss) | $ 434,114 | $ (3,411,220) | [5],[6] |
Income (loss) per common share: | |||
Basic (in dollars per share) | $ 0.06 | $ (0.46) | |
Diluted (in dollars per share) | $ 0.06 | $ (0.46) | |
Weighted-average number of shares: | |||
Basic (in shares) | 7,401,030 | 7,382,706 | |
Diluted (in shares) | 7,407,827 | 7,382,706 | |
[1] | As adjusted for the retrospective adoption of ASC 606 | ||
[2] | As adjusted for the retrospective adoption of ASC 606 | ||
[3] | As adjusted for the retrospective adoption of ASC 606 | ||
[4] | As adjusted for the retrospective adoption of ASC 606 | ||
[5] | As adjusted for the retrospective adoption of ASC 606 | ||
[6] | As adjusted for the retrospective adoption of ASC 606 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | ||||
Operating activities: | |||||
Net income (loss) | $ 434,114 | $ (3,411,220) | [1],[2],[3] | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||
Provision for (recovery of) doubtful accounts | 23,422 | (4,874) | [1] | ||
Loss on disposal of equipment and leasehold improvements | 343 | [1] | |||
Depreciation of equipment and leasehold improvements | 429,750 | 526,261 | [1] | ||
Stock-based compensation expense | 387,556 | 331,560 | [1] | ||
Deferred income taxes | (13,276) | 3,041,405 | [1] | ||
Change in cash surrender value of life insurance | (72,019) | (218,224) | [1] | ||
Change in deferred revenue | (50,882) | 15,638 | [1] | ||
Change in deferred compensation accrual | 175,953 | 249,591 | [1] | ||
Deferred compensation paid | (150,000) | (150,000) | [1] | ||
Net changes in operating assets and liabilities (see Note 13) | 246,447 | 650,607 | [1],[4] | ||
Cash provided by operating activities | 1,411,065 | 1,031,087 | [1] | ||
Investing activities: | |||||
Purchase of equipment and leasehold improvements | (187,756) | (250,618) | [1] | ||
Life insurance premiums paid | (123,237) | (131,219) | [1] | ||
Cash used in investing activities | (310,993) | (381,837) | [1] | ||
Financing Activities: | |||||
Exercise of common stock options | 46,677 | [1] | |||
Net cash flows provided by financing activities | 46,677 | [1] | |||
Net increase in cash and cash equivalents | 1,146,749 | 649,250 | [1] | ||
Cash and cash equivalents at beginning of year | [1] | 1,081,533 | [5] | 432,283 | |
Cash and cash equivalents at end of year | $ 2,228,282 | $ 1,081,533 | [1],[5] | ||
[1] | As adjusted for the retrospective adoption of ASC 606 | ||||
[2] | As adjusted for the retrospective adoption of ASC 606 | ||||
[3] | As adjusted for the retrospective adoption of ASC 606 | ||||
[4] | As adjusted for retrospective adoption of ASC 606 and ASC 842 | ||||
[5] | As adjusted for the retrospective adoption of ASC 606 and ASC 842 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total | |||
Balance, as originally stated (in shares) at Jun. 30, 2017 | 7,382,706 | ||||||
Balance, as originally stated at Jun. 30, 2017 | $ 36,914 | $ 5,420,710 | $ 12,114,688 | $ 17,572,312 | |||
Change due to retrospective adoption of ASC 606 at Jun. 30, 2017 | (288,878) | (288,878) | |||||
Adjusted Balance at Jun. 30, 2017 | 36,914 | 5,420,710 | 11,825,790 | 17,283,414 | |||
Net income (loss) | [1] | (3,411,220) | (3,411,220) | [2],[3] | |||
Stock-based compensation expense | 331,560 | $ 331,560 | |||||
Exercise of common stock options (in shares) | |||||||
Balance (in shares) at Jun. 30, 2018 | 7,382,706 | [1] | 7,382,706 | ||||
Balance at Jun. 30, 2018 | [1] | $ 36,914 | 5,752,270 | 8,414,570 | $ 14,203,754 | [4] | |
Net income (loss) | 434,114 | 434,114 | |||||
Stock-based compensation expense | 387,556 | $ 387,556 | |||||
Exercise of common stock options (in shares) | 22,125 | 22,125 | |||||
Exercise of common stock options | $ 110 | 46,567 | $ 46,677 | ||||
Balance (in shares) at Jun. 30, 2019 | 7,404,831 | 7,404,831 | |||||
Balance at Jun. 30, 2019 | $ 37,024 | $ 6,186,393 | $ 8,848,684 | $ 15,072,101 | |||
[1] | As adjusted for the retrospective adoption of ASC 606 | ||||||
[2] | As adjusted for the retrospective adoption of ASC 606 | ||||||
[3] | As adjusted for the retrospective adoption of ASC 606 | ||||||
[4] | As adjusted for the retrospective adoption of ASC 606 and ASC 842 |
Note 1 - Significant Accounting
Note 1 - Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 1. SIGNIFICANT ACCOUNTING POLICIES NATURE OF BUSINESS — Koss Corporation ("Koss"), a Delaware corporation, and its 100% one no BASIS OF CONSOLIDATION — The Consolidated Financial Statements include the accounts of Koss and its subsidiary, Koss UK, which is a 100% -owned subsidiary. All significant intercompany accounts and transactions have been eliminated. REVENUE RECOGNITION — Revenues from product sales are recognized when the customer obtains control of the product, which typically occurs upon shipment from the Company's facility. There are a very limited number of customers for which control does not pass until they have received the products at their facility. Revenue from product sales is adjusted for estimated warranty obligations and variable consideration, which are detailed below. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014 - 09 (Topic 606 ), Revenue from Contracts with Customers. This new standard supersedes nearly all existing revenue recognition guidance and provides a five -step analysis to determine when and how revenue is recognized. The underlying principle is to recognize revenue when promised goods or services transfer to the customer. The amount of revenue recognized is to reflect the consideration expected to be received for those goods or services. The Company adopted the requirements of the new standard on July 1, 2018 using the full retrospective transition method. Prior period Consolidated Financial Statements were restated to reflect full retrospective adoption. See Note 3 to the Consolidated Financial Statements for additional information on revenue recognition. SHIPPING AND HANDLING FEES AND COSTS — Shipping and handling costs charged to customers have been included in net sales. Shipping and handling costs incurred by the Company have been included in cost of goods sold. RESEARCH AND DEVELOPMENT — Research and development activities charged to operations as a component of selling, general and administrative expenses in the accompanying Consolidated Statements of Operations amounted to $ 334,789 $ 427,009 2019 2018 ADVERTISING COSTS — Advertising costs included within selling, general and administrative expenses in the accompanying Consolidated Statements of Operations were $ 47,657 2019 $ 65,279 2018 INCOME TAXES — The Company operates as a C Corporation under the Internal Revenue Code (the "Code"). Amounts provided for income tax expense are based on income reported for financial statement purposes and do not bases INCOME (LOSS) PER COMMON AND COMMON STOCK EQUIVALENT SHARE — Income (loss) per common and common stock equivalent share is calculated under the provisions of Topic 260 in the Accounting Standards Codification ("ASC") which provides for calculation of “basic” and “diluted” income (loss) per share. Basic income (loss) per common and common stock equivalent share includes no dilution and is computed by dividing net income (loss) by the weighted average common shares outstanding for the period. Diluted income (loss) per common and common stock equivalent share reflects the potential dilution of securities that could share in the earnings of an entity. See Note 10 for additional information on income (loss) per common and common stock equivalent share. CASH AND CASH EQUIVALENTS — The Company considers depository accounts and investments with a maturity at the date of acquisition and expected usage of three not not ACCOUNTS RECEIVABLE — Accounts receivable consists of unsecured trade receivables due from customers. An allowance for doubtful accounts is recorded for significant past due receivable balances based on a review of the past due item and general economic conditions. INVENTORIES — Effective June 30, 2019, the Company changed its accounting principle for inventory and discontinued the use of the last-in, first -out ("LIFO") method for inventory valuation and adopted the first -in, first -out ("FIFO") method of inventory. This change in accounting principle did not change the inventory valuation as of June 30, 2018 or June 30, 2019 as the LIFO reserve was $0 as of both dates. The results of operations for the years ended June 30, 2018 and June 30, 2019 were not impacted by discontinuing the use of LIFO since the LIFO reserve was reduced to $0 effective June 30, 2017. The carrying value of inventory is reviewed for impairment on at least a quarterly basis or more frequently if warranted due to changes in market conditions. See Note 4 for additional information on inventory. EQUIPMENT AND LEASEHOLD IMPROVEMENTS — Equipment and leasehold improvements are stated at cost. Depreciation and amortization is calculated using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are amortized using the straight-line method over the shorter of the lease term or the estimated useful life of the asset. Major expenditures for property and equipment and significant renewals are capitalized. Maintenance, repairs and minor renewals are expensed as incurred. When assets are retired or otherwise disposed of, their costs and related accumulated depreciation and amortization are removed from the accounts and any resulting gains or losses are included in operations. See Note 5 for additional information on equipment and leasehold improvements. LEASES — In February 2016, the FASB issued ASU 2016 - 02 (Topic 842 ), Leases. This new standard revises existing lease guidance and requires all operating leases to be recorded on a company's balance sheet as right-of-use ("ROU") assets and lease liabilities. The new guidance also requires additional disclosures about leases. The Company early adopted the requirements of the new standard on July 1, 2018 using the modified retrospective transition method. Prior period Consolidated Financial Statements were restated to reflect modified retrospective adoption beginning with the Quarterly Report on Form 10 -Q for the quarter ended September 30, 2018. The Company determines if a contract is a lease at the date of inception. The Company leases its facility in Milwaukee, Wisconsin from Koss Holdings, LLC, which is wholly-owned by the former chairman, and has determined that the lease is an operating lease. Operating leases are reported on the Company's Consolidated Balance Sheets as operating lease ROU assets and operating lease liabilities. Operating lease ROU assets and liabilities are valued at the present value of the future lease payment obligations. LIFE INSURANCE POLICIES — Life insurance policies are stated at cash surrender value or at the amount the Company would receive in the case of split-dollar arrangements. Increases in cash surrender value are included in selling, general and administrative expenses in the Consolidated Statements of Operations, which is where the annual premiums are recorded. DEFERRED COMPENSATION — The Company’s deferred compensation liabilities are for a current and former officer and are calculated based on compensation, years of service and mortality tables. The related expense is calculated using the net present value of the expected payments and is included in selling, general and administrative expenses in the Consolidated Statements of Operations. See Note 9 FAIR VALUE OF FINANCIAL INSTRUMENTS — Cash equivalents, accounts receivable and accounts payable approximate fair value based on the short maturity of these instruments. IMPAIRMENT OF LONG-LIVED ASSETS — The Company evaluates the recoverability of the carrying amount of long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not No June 30, 2019 2018 LEGAL COSTS — All legal costs related to litigation are charged to operations as incurred, except settlements, which are expensed when a claim is probable and can be estimated. Recoveries of legal costs are recorded when the amount and items to be paid are confirmed by the insurance company. Proceeds from the settlement of legal disputes are recorded in income when the amounts are determinable and the collection is certain. STOCK-BASED COMPENSATION — The Company has a stock-based employee compensation plan, which is described more fully in Note 11. 718 USE OF ESTIMATES — The preparation of 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 revenue and expenses during the reported period. Actual results could differ from those estimates. RECLASSIFICATIONS — Certain amounts previously reported have been reclassified to conform to the current presentation. |
Note 2 - Recently Adopted Accou
Note 2 - Recently Adopted Accounting Pronouncements | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | 2. RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS REVENUE RECOGNITION — In May 2014, 2014 09 606 July 1, 2018, 3 LEASES — In February 2016, 2016 02 842 July 1, 2018, not 15 |
Note 3 - Revenue Recognition
Note 3 - Revenue Recognition | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 3. REVENUE RECOGNITION Revenues from product sales are recognized when the customer obtains control of the product, which typically occurs upon shipment from the Company's facility. There are a very limited number of customers for which control does not May 2014, 2014 09 606 five July 1, 2018 Warranties determine the standalone selling price for one three Reserves for Variable Consideration Product Returns may Volume Rebates States may The cumulative effect of the changes made to our June 30, 2018 Consolidated Balance Sheet 606 Balance Sheet As Previously New Revenue As June 30, 2018 Reported Standard Adjustment Adjusted Current liabilities: Accrued liabilities $ 1,178,571 $ (389,610 ) $ 788,961 Deferred revenue - 690,905 690,905 Long-term liabilities: Other liabilities 155,702 (155,702 ) - Deferred revenue - 168,465 168,465 Equity: Retained earnings $ 8,728,628 $ (314,058 ) $ 8,414,570 The impact of adoption on our Consolidated Statement of Operations was as follows: Statement of Operations As Previously New Revenue As Year ended June 30, 2018 Reported Standard Adjustment Adjusted Net sales $ 23,515,441 $ 7,190 $ 23,522,631 Cost of goods sold 16,933,431 33,202 16,966,633 Income tax provision 3,042,696 (852 ) 3,041,844 Net (loss) (3,386,060 ) (25,160 ) (3,411,220 ) (Loss) per common share: Basic $ (0.46 ) $ $ (0.46 ) Diluted (0.46 ) - (0.46 ) The impact of adoption on our Consolidated Statement of Cash Flows was as follows: Statement of Cash Flows As Previously New Revenue As Year ended June 30, 2018 Reported Standard Adjustment Adjusted Operating activities: Net (loss) $ (3,386,060 ) $ (25,160 ) $ (3,411,220 ) Deferred income taxes 3,042,257 (852 ) 3,041,405 Change in deferred revenue 15,638 15,638 Net changes in operating assets and liabilities 640,233 10,374 650,607 Cash provided by operating activities $ 1,031,087 - $ 1,031,087 Disaggregation of Revenue 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 2019 2018* United States $ 15,255,741 $ 16,584,115 Export 6,586,3 Net Sales $ 21,842,097 $ 23,522,631 *As adjusted for the retrospective adoption of ASC 606 |
Note 4 - Inventories
Note 4 - Inventories | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 4. INVENTORIES Effective June 30, 2019, last-in, first first first inventory not June 30, 2018 June 30, 2019 $0 June 30, 2018 June 30, 2019 not $0 June 30, 2017 As of June 30, 2019 2018 ’s inventory was recorded using the lower of net realizable value June 30, 2019 2018 2019 2018 Raw materials $ 1,848,340 $ 2,717,862 Finished goods 6,604,408 6,057,703 8,452,748 8,775,565 Reserve for obsolete inventory (1,601,300 ) (2,636,886 ) Total inventories $ 6,851,448 $ 6,138,679 |
Note 5 - Equipment and Leasehol
Note 5 - Equipment and Leasehold Improvements | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 5. EQUIPMENT AND LEASEHOLD IMPROVEMENTS The major categories of equipment and leasehold improvements at June 30, 2019 2018 Estimated useful lives (in years) 2019 2018 Machinery and equipment 5 - 10 $ 593,595 $ 593,595 Furniture and office equipment 5 - 10 357,351 357,351 Tooling 5 4,261,077 4,308,967 Computer equipment 3 - 5 758,819 758,820 Leasehold improvements 3 - 10 2,517,226 2,457,006 Assets in progress N/A 118,737 19,500 8,606,805 8,495,239 Less: accumulated depreciation and amortization 7,716,695 7,363,134 Equipment and leasehold improvements, net $ 890,110 $ 1,132,105 |
Note 6 - Income Taxes
Note 6 - Income Taxes | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 6. INCOME TAXES The Company utilizes the liability method of accounting for income taxes. The liability method measures the expected income tax impact of future taxable income and deductions implicit in the Consolidated Balance Sheets. The income tax 2019 2018 Year Ended June 30, 2019 2018* Current: Federal $ (13,277 ) $ 414 State 25 25 Deferred (13,251 ) 3,041,405 Total income tax (benefit) provision $ (26,503 ) $ 3,041,844 *As adjusted for the retrospective adoption of ASC 606 On December 22, 2017, 35% 21% January 1, 2018. second June 30, 2018 $713,826 of n The 2019 2018 Year Ended June 30, 2019 2018* Federal income tax liability (benefit) at statutory rate $ 85,599 $ (101,578 ) State income tax liability (benefit), net of federal income tax effect 20 (9,518 ) (Decrease) increase in valuation allowance (328,541 ) 2,266,219 Stock-based compensation - 91,179 Adjustment to deferred tax assets 189,186 - Remeasurement of deferred income taxes - 713,826 Other 27,233 81,716 Total income tax (benefit) provision $ (26,503 ) $ 3,041,844 *As adjusted for the retrospective adoption of ASC 606 Temporary differences which give rise to deferred income tax assets and liabilities at June 30, 2019 June 30, 2018 2019 2018* Deferred income tax assets: Deferred compensation $ 642,424 $ 635,936 Stock-based compensation 228,981 420,204 Accrued expenses and reserves 705,828 997,924 Federal and state net operating loss carryforwards 697,621 630,344 Equipment and leasehold improvements 122,714 26,568 Valuation allowance (2,382,087 ) (2,710,628 ) Total deferred income tax assets 15,481 348 Deferred income tax liabilities: Other (2,205 ) (348 ) Net deferred income tax assets $ 13,276 $ - *As adjusted for the retrospective adoption of ASC 606 842 Deferred income tax balances reflect the effects of temporary differences between the tax bases of assets and liabilities and their carrying amounts. These differences are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered. The recognition of these deferred tax balances will be realized through normal recurring operations and, as such, the Company has recorded the value of such expected benefits. The Company has federal net operating loss carryforwards totaling $317,531 2037 $312,272 $6,500,000 2026 2039 ASC Topic 740 no June 30, 2019 Additionally, ASC Topic 740 No June 30, 2019 2018 The Company does not June 30, 2019 2018 June 30, 2019 2018 have impacted The Company files income tax returns in the United States federal jurisdiction and in several state jurisdictions. The Company’s federal tax returns for tax years beginning July 1, 2015 June 30, 2014 The following are the changes in the valuation allowance, which are net of the impact for the remeasurement due to the TCJA: Balance, Decrease (Increase) beginning in valuation Balance, Year Ended June 30, of year allowance end of year 2019 $ (2,710,628 ) $ 328,541 $ (2,382,087 ) 2018 $ (444,409 ) $ (2,266,219 ) $ (2,710,628 ) |
Note 7 - Credit Facility
Note 7 - Credit Facility | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 7. CREDIT FACILITY On May 12, 2010, ("JPMorgan Credit Agreement") w i $8,000,000 0.0% 0.75% 2.0% 3.0% 0.3% 0.45% June 29, 2017, $4,000,000 May 9, 2018, July 31, 2019. may, $2,000,000 may May 12, 2010, JPMorgan June 30, 2018 no The Company’s credit facility with JPMorgan was terminated on May 14, 2019 no On May 14, 2019, ("Credit Agreement two May 14, 2021. $5,000,000 1.50% $1,000,000 no May 14, 2019 fundamental changes, certain investments, disposition of assets, mergers and liquidations June 30, 2019 no The Company incurs interest expense primarily related to its secured credit facility. Interest expense was $5,218 June 30, 2018 no June 30, 2019 |
Note 8 - Accrued Liabilities
Note 8 - Accrued Liabilities | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 8. ACCRUED LIABILITIES Accrued liabilities as of June 30, 2019 2018 2019 2018* Cooperative advertising and promotion allowances $ 188,985 $ 292,873 Customer credit balances 65,937 53,365 Current deferred compensation 150,000 150,000 Employee benefits 60,178 60,739 Legal and professional fees 65,914 81,000 Bonus and profit-sharing 18,694 17,975 Sales commissions and bonuses 51,026 74,078 Other 49,779 58,931 Total accrued liabilities $ 650,513 $ 788,961 *As adjusted for retrospective adoption of ASC 606 |
Note 9 - Deferred Compensation
Note 9 - Deferred Compensation | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 9. DEFERRED COMPENSATION The Company has deferred compensation agreements with a former and current officer. The related expense is calculated using the net present value of the expected payments and is included in selling, general and administrative expenses in the Consolidated Statements of Operations. The Company's current and non-current deferred compensation obligations are included in accrued liabilities and deferred compensation, respectively, in the Consolidated Balance Sheets. The net present value was calculated for the former officer using a discount factor of 2.60% June 30, 2019 2018 4.80% June 30, 2019 2018 The Board of Directors entered into an agreement to continue the 1991 June 30, 2015, $150,000 June 30, 2019 2018 $540,379 $672,884 June 30, 2019 2018 $17,495 $102,293 2019 2018 The Board of Directors has approved a supplemental retirement plan for 2% $2,029,583 $1,871,125 June 30, 2019 2018 $158,458 $147,298 2019 2018 |
Note 10 - Income (Loss) Per Com
Note 10 - Income (Loss) Per Common and Common Stock Equivalent Share | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 10. INCOME (LOSS) PER COMMON AND COMMON STOCK EQUIVALENT SHARE Basic income (loss) per share is computed based on the weighted-average number of common shares outstanding. The weighted-average number of common shares outstanding was 7,401,030 June 30, 2019 7,382,706 June 30, 2018 June 30, 2019 2018 2,523,513 2,405,000 |
Note 11 - Stock Options
Note 11 - Stock Options | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 11. STOCK OPTIONS In 2012, 2012 “2012 1990 "1990 2012 2,000,000 2012 1990 July 25, 2012, 2012 June 30, 2019 899,308 three five with a maximum term of five ten The fair value of each stock option grant was estimated as of the date of grant using the Black-Scholes pricing model. The resulting compensation cost for fixed awards with graded vesting schedules is amortized on a straight-line basis over the vesting period for the entire award. The expected term of awards granted is determined based on historical experience with similar awards, giving consideration to the expected term and vesting schedules. The expected volatility is determined based on the Company’s historical stock prices over the most recent period commensurate with the expected term of the award. The risk-free interest rate is based on U.S. Treasury zero As of June 30, 2019 $1,334,370 2012 1990 2.83 $387,556 $331,560 2019 2018 Options are granted at a price equal to or greater than the market value of the common stock on the date of grant. The per share weighted average fair value of the stock options granted during the years ended June 30, 2019 2018 $1.57 $0.85 2019 2018 2019 2018 Expected stock price volatility 66 % 54 % Risk free interest rate 2.86 % 1.91 % Expected dividend yield — % — % Expected forfeitures 29.68 % 24.40 % Expected life of options (years) 5.8 5.6 The following table identifies options granted, exercised, canceled, or available for exercise pursuant to the 1990 2012 Aggregate Weighted Intrinsic Weighted Average Value of Stock Average Remaining In-The- Number of Options Exercise Contractual Money Shares Price Range Price Life - Years Options Shares under option at June 30, 2017 2,180,000 $2.05 - $7.76 $ 3.93 3.47 $ — Granted 510,000 $1.77 - $1.95 $ 1.89 Exercised — — $ — Expired (285,000) $5.47 - $7.76 $ 5.55 Forfeited — — $ — Shares under option at June 30, 2018 2,405,000 $1.77 - $6.28 $ 3.31 3.61 $ — Granted 585,000 $2.63 - $2.92 $ 2.79 Exercised (22,125) $1.77 - $2.24 $ 2.11 Expired (302,000) $1.77 - $5.83 $ 5.62 Forfeited (73,000) $1.77 - $2.65 $ 2.22 Shares under option at June 30, 2019 2,592,875 $1.77 - $6.28 $ 2.96 4.23 $ 48,280 Exercisable as of June 30, 2018 1,215,082 $2.05 - $6.28 $ 4.27 2.31 $ 10,750 Exercisable as of June 30, 2019 1,320,291 $1.77 - $6.28 $ 3.45 2.20 $ 9,788 The aggregate intrinsic value of outstanding and exercisable stock options is defined as the difference between the market value of the Company's stock on June 30, 2019 A summary of intrinsic value and cash received from stock option exercises and fair value of vested stock options for the fiscal years ended June 30, 2019 2018 2019 2018 Total intrinsic value of stock options exercised $ 34,797 $ — Cash received from stock option exercises $ 46,677 $ — Total fair value of stock options vested $ 374,639 $ 399,595 Total recognized tax benefit $ 9,198 $ — Weighted Average Grant Date Shares Fair Value Non-vested as of June 30, 2017 1,074,834 0.96 Granted 510,000 0.85 Vested (394,916 ) 1.01 Forfeited - - Non-vested as of June 30, 2018 1,189,918 0.90 Granted 585,000 1.57 Vested (429,334 ) 0.87 Forfeited (73,000 ) 1.33 Non-vested as of June 30, 2019 1,272,584 1.19 |
Note 12 - Stock Repurchase Prog
Note 12 - Stock Repurchase Program | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Stock Purchase Derivative Liability and Treasury Stock [Text Block] | 12. STOCK REPURCHASE PROGRAM In April 1995, $2,000,00 June 30, 2019 $45,500,000 $43,360,247 No 2019 2018 The Company has an agreement with the former chairman, in the event of his death, at the request of the executor of his estate, to repurchase his Company common stock from his estate. The Company does not As of June 30, 2018 June 30, 2019 not no may 95% $2,500,000 may may 25% four $1,150,000 |
Note 13 - Additional Cash Flow
Note 13 - Additional Cash Flow Information | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | 13. ADDITIONAL CASH FLOW INFORMATION The net changes in cash as a result of changes in operating assets and liabilities consist of the following: 2019 2018* Accounts receivable $ 1,031,180 $ (773,330 ) Inventories (712,769 ) 2,206,664 Prepaid expenses and other current assets 72,887 (381 ) Income taxes receivable (13,285 ) 439 Accounts payable 6,882 (813,619 ) Accrued liabilities (138,448 ) 30,834 Net change $ 246,447 $ 650,607 Net cash paid (refunded) Income taxes $ 1,620 $ 3,182 Interest expense $ - $ 5,218 *As adjusted for retrospective adoption of ASC 606 842 |
Note 14 - Deferred Revenue
Note 14 - Deferred Revenue | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Contract with Customer, Liability [Text Block] | 14. DEFERRED REVENUE Deferred revenue relates primarily to consumer and customer warranties. These constitute future performance obligations and the Company defers revenue $497,351 $480,375 twelve June 30, 2019 2018, |
Note 15 - Leases
Note 15 - Leases | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 15. 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 five June 30, 2023 $380,000 five June 30, 2028 The Company used its incremental borrowing rate as of July 1, 2017, 2016 02 842 five not Adoption of the standard related to leases impacted the Company's previously reported results by adding the following line items to the Company's Balance Sheet As June 30, 2018 Adjusted Assets: Operating lease right-of-use asset $ 3,102,263 Current liabilities: Operating lease liability 254,418 Long-term liabilities: Operating lease liability $ 2,847,845 Supplemental information related to lease expense and valuation of the ROU asset and liability was as follows: Year Ended 2019 2018 Operating lease cost $ 380,000 $ 380,000 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (380,000 ) $ (380,000 ) Weighted-average remaining lease term (in years) 9 10 Weighted-average discount rate 4.25 % 4.25 % The maturity schedule of future minimum lease payments and reconciliation to the operating lease liabilities Year Ending June 30, 2020 $ 380,000 2021 380,000 2022 380,000 2023 380,000 2024 380,000 Thereafter 1,520,000 Total lease payments 3,420,000 Present value adjustment (572,155 ) Total lease liabilities $ 2,847,845 |
Note 16 - Employee Benefit Plan
Note 16 - Employee Benefit Plans | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Compensation and Employee Benefit Plans [Text Block] | 16. EMPLOYEE BENEFIT PLANS Substantially all domestic employees are participants in the Koss Employee Stock Ownership Trust ("KESOT") under which an annual contribution in either cash or common stock may No 2019 2018 The Company maintains a retirement savings plan under Section 401 one 2019 2018 50% 75% $160,171 $276,217 2019 2018 |
Note 17 - Concentrations
Note 17 - Concentrations | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | 17. CONCENTRATIONS The Company’s sales to its largest single customer, Wal-Mart, were approximately 18% 21% 2019 2018 five 45% 47% 2019 2018 June 30, 2019 June 30, 2018 33% 34% 10% 26% June 30, 2019 2018 The Company uses contract manufacturing facilities in the People’s Republic of China. The majority of the contract manufacturing is done by four one 75% |
Note 18 - Legal Matters
Note 18 - Legal Matters | 12 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Legal Matters and Contingencies [Text Block] | 18. LEGAL MATTERS As of June 30, 2019 matte s • On or around July 13, 2018, August 10, 2018, • The Company has launched a program focused on enforcing its intellectual property and, in particular, certain of its patent portfolio. The Company has incurred costs and will continue to incur costs related to enforcing this program. These costs primarily relate to legal fees and other costs involved with the underlying efforts to enforce this portfolio. Depending on the response to and the underlying results of the enforcement program, the Company may The ultimate resolution of these matters is not 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 may |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Consolidation, Subsidiaries or Other Investments, Consolidated Entities, Policy [Policy Text Block] | BASIS OF CONSOLIDATION — The Consolidated Financial Statements include the accounts of Koss and its subsidiary, Koss UK, which is a 100% |
Revenue from Contract with Customer [Policy Text Block] | REVENUE RECOGNITION — Revenues from product sales are recognized when the customer obtains control of the product, which typically occurs upon shipment from the Company's facility. There are a very limited number of customers for which control does not May 2014, 2014 09 606 five July 1, 2018 3 |
Shipping and Handling, Fees and Costs [Policy Text Block] | SHIPPING AND HANDLING FEES AND COSTS — Shipping and handling costs charged to customers have been included in net sales. Shipping and handling costs incurred by the Company have been included in cost of goods sold. |
Research and Development Expense, Policy [Policy Text Block] | RESEARCH AND DEVELOPMENT — Research and development activities charged to operations as a component of selling, general and administrative expenses in the accompanying Consolidated Statements of Operations amounted to $ 334,789 $ 427,009 2019 2018 |
Advertising Cost [Policy Text Block] | ADVERTISING COSTS — Advertising costs included within selling, general and administrative expenses in the accompanying Consolidated Statements of Operations were $ 47,657 2019 $ 65,279 2018 |
Income Tax, Policy [Policy Text Block] | INCOME TAXES — The Company operates as a C Corporation under the Internal Revenue Code (the "Code"). Amounts provided for income tax expense are based on income reported for financial statement purposes and do not bases |
Earnings Per Share, Policy [Policy Text Block] | INCOME (LOSS) (loss) 260 (loss) (loss) no (loss) (loss) 10 (loss) |
Cash and Cash Equivalents, Policy [Policy Text Block] | CASH AND CASH EQUIVALENTS — The Company considers depository accounts and investments with a maturity at the date of acquisition and expected usage of three not not |
Accounts Receivable [Policy Text Block] | ACCOUNTS RECEIVABLE — Accounts receivable consists of unsecured trade receivables due from customers. An allowance for doubtful accounts is recorded for significant past due receivable balances based on a review of the past due item and general economic conditions. |
Inventory, Policy [Policy Text Block] | INVENTORIES June 30, 2019, last-in, first first first not June 30, 2018 June 30, 2019 $0 June 30, 2018 June 30, 2019 not $0 June 30, 2017. 4 |
Property, Plant and Equipment, Policy [Policy Text Block] | EQUIPMENT AND LEASEHOLD IMPROVEMENTS — Equipment and leasehold improvements are stated at cost. Depreciation and amortization is 5 |
Lessee, Leases [Policy Text Block] | LEASES February 2016, 2016 02 842 July 1, 2018 10 September 30, 2018. The Company determines if a contract is a lease at the date of inception. The Company leases its facility in Milwaukee, Wisconsin from Koss Holdings, LLC, which is wholly-owned by the former chairman, and has determined that the lease is an operating lease. Operating leases are reported on the Company's Consolidated Balance Sheets |
Life Insurance Policies [Policy Text Block] | LIFE INSURANCE POLICIES — Life insurance policies are stated at cash surrender value or at the amount the Company would receive in the case of split-dollar arrangements. Increases in cash surrender value are included in selling, general and administrative expenses in the Consolidated Statements of Operations, which is where the annual premiums are recorded. |
Compensation Related Costs, Policy [Policy Text Block] | DEFERRED COMPENSATION — The Company’s deferred compensation liabilities are for a current and former officer and are calculated based on compensation, years of service and mortality tables. The related expense is calculated using the net present value of the expected payments and is included in selling, general and administrative expenses in the Consolidated Statements of Operations. See Note 9 |
Fair Value of Financial Instruments, Policy [Policy Text Block] | FAIR VALUE OF FINANCIAL INSTRUMENTS — Cash equivalents, accounts receivable and accounts payable approximate fair value based on the short maturity of these instruments. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | IMPAIRMENT OF LONG-LIVED ASSETS — The Company evaluates the recoverability of the carrying amount of long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not No June 30, 2019 2018 |
Legal Costs, Policy [Policy Text Block] | LEGAL COSTS — All legal costs related to litigation are charged to operations as incurred, except settlements, which are expensed when a claim is probable and can be estimated. Recoveries of legal costs are recorded when the amount and items to be paid are confirmed by the insurance company. Proceeds from the settlement of legal disputes are recorded in income when the amounts are determinable and the collection is certain. |
Share-based Payment Arrangement [Policy Text Block] | STOCK-BASED COMPENSATION — The Company has a stock-based employee compensation plan, which is described more fully in Note 11. 718 |
Use of Estimates, Policy [Policy Text Block] | USE OF ESTIMATES — The preparation of 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 revenue and expenses during the reported period. Actual results could differ from those estimates. |
Reclassification, Policy [Policy Text Block] | RECLASSIFICATIONS — Certain amounts previously reported have been reclassified to conform to the current presentation. |
Note 3 - Revenue Recognition (T
Note 3 - Revenue Recognition (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | Balance Sheet As Previously New Revenue As June 30, 2018 Reported Standard Adjustment Adjusted Current liabilities: Accrued liabilities $ 1,178,571 $ (389,610 ) $ 788,961 Deferred revenue - 690,905 690,905 Long-term liabilities: Other liabilities 155,702 (155,702 ) - Deferred revenue - 168,465 168,465 Equity: Retained earnings $ 8,728,628 $ (314,058 ) $ 8,414,570 Statement of Operations As Previously New Revenue As Year ended June 30, 2018 Reported Standard Adjustment Adjusted Net sales $ 23,515,441 $ 7,190 $ 23,522,631 Cost of goods sold 16,933,431 33,202 16,966,633 Income tax provision 3,042,696 (852 ) 3,041,844 Net (loss) (3,386,060 ) (25,160 ) (3,411,220 ) (Loss) per common share: Basic $ (0.46 ) $ $ (0.46 ) Diluted (0.46 ) - (0.46 ) Statement of Cash Flows As Previously New Revenue As Year ended June 30, 2018 Reported Standard Adjustment Adjusted Operating activities: Net (loss) $ (3,386,060 ) $ (25,160 ) $ (3,411,220 ) Deferred income taxes 3,042,257 (852 ) 3,041,405 Change in deferred revenue 15,638 15,638 Net changes in operating assets and liabilities 640,233 10,374 650,607 Cash provided by operating activities $ 1,031,087 - $ 1,031,087 |
Disaggregation of Revenue [Table Text Block] | 2019 2018* United States $ 15,255,741 $ 16,584,115 Export 6,586,3 Net Sales $ 21,842,097 $ 23,522,631 |
Note 4 - Inventories (Tables)
Note 4 - Inventories (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | 2019 2018 Raw materials $ 1,848,340 $ 2,717,862 Finished goods 6,604,408 6,057,703 8,452,748 8,775,565 Reserve for obsolete inventory (1,601,300 ) (2,636,886 ) Total inventories $ 6,851,448 $ 6,138,679 |
Note 5 - Equipment and Leaseh_2
Note 5 - Equipment and Leasehold Improvements (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | Estimated useful lives (in years) 2019 2018 Machinery and equipment 5 - 10 $ 593,595 $ 593,595 Furniture and office equipment 5 - 10 357,351 357,351 Tooling 5 4,261,077 4,308,967 Computer equipment 3 - 5 758,819 758,820 Leasehold improvements 3 - 10 2,517,226 2,457,006 Assets in progress N/A 118,737 19,500 8,606,805 8,495,239 Less: accumulated depreciation and amortization 7,716,695 7,363,134 Equipment and leasehold improvements, net $ 890,110 $ 1,132,105 |
Note 6 - Income Taxes (Tables)
Note 6 - Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year Ended June 30, 2019 2018* Current: Federal $ (13,277 ) $ 414 State 25 25 Deferred (13,251 ) 3,041,405 Total income tax (benefit) provision $ (26,503 ) $ 3,041,844 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended June 30, 2019 2018* Federal income tax liability (benefit) at statutory rate $ 85,599 $ (101,578 ) State income tax liability (benefit), net of federal income tax effect 20 (9,518 ) (Decrease) increase in valuation allowance (328,541 ) 2,266,219 Stock-based compensation - 91,179 Adjustment to deferred tax assets 189,186 - Remeasurement of deferred income taxes - 713,826 Other 27,233 81,716 Total income tax (benefit) provision $ (26,503 ) $ 3,041,844 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2019 2018* Deferred income tax assets: Deferred compensation $ 642,424 $ 635,936 Stock-based compensation 228,981 420,204 Accrued expenses and reserves 705,828 997,924 Federal and state net operating loss carryforwards 697,621 630,344 Equipment and leasehold improvements 122,714 26,568 Valuation allowance (2,382,087 ) (2,710,628 ) Total deferred income tax assets 15,481 348 Deferred income tax liabilities: Other (2,205 ) (348 ) Net deferred income tax assets $ 13,276 $ - |
Summary of Valuation Allowance [Table Text Block] | Balance, Decrease (Increase) beginning in valuation Balance, Year Ended June 30, of year allowance end of year 2019 $ (2,710,628 ) $ 328,541 $ (2,382,087 ) 2018 $ (444,409 ) $ (2,266,219 ) $ (2,710,628 ) |
Note 8 - Accrued Liabilities (T
Note 8 - Accrued Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | 2019 2018* Cooperative advertising and promotion allowances $ 188,985 $ 292,873 Customer credit balances 65,937 53,365 Current deferred compensation 150,000 150,000 Employee benefits 60,178 60,739 Legal and professional fees 65,914 81,000 Bonus and profit-sharing 18,694 17,975 Sales commissions and bonuses 51,026 74,078 Other 49,779 58,931 Total accrued liabilities $ 650,513 $ 788,961 |
Note 11 - Stock Options (Tables
Note 11 - Stock Options (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 2019 2018 Expected stock price volatility 66 % 54 % Risk free interest rate 2.86 % 1.91 % Expected dividend yield — % — % Expected forfeitures 29.68 % 24.40 % Expected life of options (years) 5.8 5.6 |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Aggregate Weighted Intrinsic Weighted Average Value of Stock Average Remaining In-The- Number of Options Exercise Contractual Money Shares Price Range Price Life - Years Options Shares under option at June 30, 2017 2,180,000 $2.05 - $7.76 $ 3.93 3.47 $ — Granted 510,000 $1.77 - $1.95 $ 1.89 Exercised — — $ — Expired (285,000) $5.47 - $7.76 $ 5.55 Forfeited — — $ — Shares under option at June 30, 2018 2,405,000 $1.77 - $6.28 $ 3.31 3.61 $ — Granted 585,000 $2.63 - $2.92 $ 2.79 Exercised (22,125) $1.77 - $2.24 $ 2.11 Expired (302,000) $1.77 - $5.83 $ 5.62 Forfeited (73,000) $1.77 - $2.65 $ 2.22 Shares under option at June 30, 2019 2,592,875 $1.77 - $6.28 $ 2.96 4.23 $ 48,280 Exercisable as of June 30, 2018 1,215,082 $2.05 - $6.28 $ 4.27 2.31 $ 10,750 Exercisable as of June 30, 2019 1,320,291 $1.77 - $6.28 $ 3.45 2.20 $ 9,788 |
Intrinsic Value and Cash Received from Stock Option Exercises and Fair Value of Vested Stock Options [Table Text Block] | 2019 2018 Total intrinsic value of stock options exercised $ 34,797 $ — Cash received from stock option exercises $ 46,677 $ — Total fair value of stock options vested $ 374,639 $ 399,595 Total recognized tax benefit $ 9,198 $ — |
Schedule of Nonvested Option Activity [Table Text Block] | Weighted Average Grant Date Shares Fair Value Non-vested as of June 30, 2017 1,074,834 0.96 Granted 510,000 0.85 Vested (394,916 ) 1.01 Forfeited - - Non-vested as of June 30, 2018 1,189,918 0.90 Granted 585,000 1.57 Vested (429,334 ) 0.87 Forfeited (73,000 ) 1.33 Non-vested as of June 30, 2019 1,272,584 1.19 |
Note 13 - Additional Cash Flo_2
Note 13 - Additional Cash Flow Information (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | 2019 2018* Accounts receivable $ 1,031,180 $ (773,330 ) Inventories (712,769 ) 2,206,664 Prepaid expenses and other current assets 72,887 (381 ) Income taxes receivable (13,285 ) 439 Accounts payable 6,882 (813,619 ) Accrued liabilities (138,448 ) 30,834 Net change $ 246,447 $ 650,607 Net cash paid (refunded) Income taxes $ 1,620 $ 3,182 Interest expense $ - $ 5,218 |
Note 15 - Leases (Tables)
Note 15 - Leases (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Assets and Liabilities Lessee [Table Text Block] | Balance Sheet As June 30, 2018 Adjusted Assets: Operating lease right-of-use asset $ 3,102,263 Current liabilities: Operating lease liability 254,418 Long-term liabilities: Operating lease liability $ 2,847,845 |
Lease, Cost [Table Text Block] | Year Ended 2019 2018 Operating lease cost $ 380,000 $ 380,000 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (380,000 ) $ (380,000 ) Weighted-average remaining lease term (in years) 9 10 Weighted-average discount rate 4.25 % 4.25 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Year Ending June 30, 2020 $ 380,000 2021 380,000 2022 380,000 2023 380,000 2024 380,000 Thereafter 1,520,000 Total lease payments 3,420,000 Present value adjustment (572,155 ) Total lease liabilities $ 2,847,845 |
Note 1 - Significant Accounti_2
Note 1 - Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Inventory, LIFO Reserve | $ 0 | $ 0 | $ 0 |
Impairment of Long-Lived Assets Held-for-use | 0 | 0 | |
Selling, General and Administrative Expenses [Member] | |||
Research and Development Expense, Total | 334,789 | 427,009 | |
Advertising Expense | $ 47,657 | $ 65,279 |
Note 3 - Revenue Recognition -
Note 3 - Revenue Recognition - Cumulative Effect of Changes for Adoption of ASC 606 (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Accrued liabilities | $ 650,513 | $ 788,961 | [1],[2] |
Deferred revenue | 645,470 | 690,905 | [2] |
Other liabilities | |||
Deferred revenue | 163,018 | 168,465 | [2] |
Retained earnings | 8,848,684 | 8,414,570 | [2] |
Net Sales | 21,842,097 | 23,522,631 | [3],[4] |
Cost of goods sold | 15,022,223 | 16,966,633 | [3] |
Income tax provision | (26,503) | 3,041,844 | [3],[5],[6] |
Net (loss) | $ 434,114 | $ (3,411,220) | [3],[7],[8] |
Basic (in dollars per share) | $ 0.06 | $ (0.46) | [3] |
Diluted (in dollars per share) | $ 0.06 | $ (0.46) | [3] |
Deferred income taxes | $ (13,276) | $ 3,041,405 | [7] |
Change in deferred revenue | (50,882) | 15,638 | [7] |
Net changes in operating assets and liabilities | 650,607 | ||
Cash provided by operating activities | $ 1,411,065 | 1,031,087 | [7] |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||
Accrued liabilities | 1,178,571 | ||
Deferred revenue | |||
Other liabilities | 155,702 | ||
Deferred revenue | |||
Retained earnings | 8,728,628 | ||
Net Sales | 23,515,441 | ||
Cost of goods sold | 16,933,431 | ||
Income tax provision | 3,042,696 | ||
Net (loss) | $ (3,386,060) | ||
Basic (in dollars per share) | $ (0.46) | ||
Diluted (in dollars per share) | $ (0.46) | ||
Deferred income taxes | $ 3,042,257 | ||
Change in deferred revenue | |||
Net changes in operating assets and liabilities | 640,233 | ||
Cash provided by operating activities | 1,031,087 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | |||
Accrued liabilities | (389,610) | ||
Deferred revenue | 690,905 | ||
Other liabilities | (155,702) | ||
Deferred revenue | 168,465 | ||
Retained earnings | (314,058) | ||
Net Sales | 7,190 | ||
Cost of goods sold | 33,202 | ||
Income tax provision | (852) | ||
Net (loss) | $ (25,160) | ||
Basic (in dollars per share) | |||
Diluted (in dollars per share) | |||
Deferred income taxes | $ (852) | ||
Change in deferred revenue | 15,638 | ||
Net changes in operating assets and liabilities | 10,374 | ||
Cash provided by operating activities | |||
[1] | As adjusted for retrospective adoption of ASC 606 | ||
[2] | As adjusted for the retrospective adoption of ASC 606 and ASC 842 | ||
[3] | As adjusted for the retrospective adoption of ASC 606 | ||
[4] | As adjusted for the retrospective adoption of ASC 606 | ||
[5] | As adjusted for the retrospective adoption of ASC 606 | ||
[6] | As adjusted for the retrospective adoption of ASC 606 | ||
[7] | As adjusted for the retrospective adoption of ASC 606 | ||
[8] | As adjusted for the retrospective adoption of ASC 606 |
Note 3 - Revenue Recognition _2
Note 3 - Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | [2] | |
Net Sales | $ 21,842,097 | $ 23,522,631 | [1] |
UNITED STATES | |||
Net Sales | 15,255,741 | 16,584,115 | |
Non-US [Member] | |||
Net Sales | $ 6,586,356 | $ 6,938,516 | |
[1] | As adjusted for the retrospective adoption of ASC 606 | ||
[2] | As adjusted for the retrospective adoption of ASC 606 |
Note 4 - Inventories (Details T
Note 4 - Inventories (Details Textual) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Inventory, LIFO Reserve, Period Charge | $ 0 | $ 0 | $ 0 |
Note 4 - Inventories - Componen
Note 4 - Inventories - Components of Inventories (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 | |
Raw materials | $ 1,848,340 | $ 2,717,862 | |
Finished goods | 6,604,408 | 6,057,703 | |
8,452,748 | 8,775,565 | ||
Reserve for obsolete inventory | (1,601,300) | (2,636,886) | |
Total inventories | $ 6,851,448 | $ 6,138,679 | [1] |
[1] | As adjusted for the retrospective adoption of ASC 606 and ASC 842 |
Note 5 - Equipment and Leaseh_3
Note 5 - Equipment and Leasehold Improvements - Major Categories of Equipment and Leasehold Improvements (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Equipment and leasehold improvements, gross | $ 8,606,805 | $ 8,495,239 | |
Less: accumulated depreciation and amortization | 7,716,695 | 7,363,134 | |
Equipment and leasehold improvements, net | 890,110 | 1,132,105 | [1] |
Machinery and Equipment [Member] | |||
Equipment and leasehold improvements, gross | $ 593,595 | 593,595 | |
Machinery and Equipment [Member] | Minimum [Member] | |||
Estimated useful life (Year) | 5 years | ||
Machinery and Equipment [Member] | Maximum [Member] | |||
Estimated useful life (Year) | 10 years | ||
Furniture and Fixtures [Member] | |||
Equipment and leasehold improvements, gross | $ 357,351 | 357,351 | |
Furniture and Fixtures [Member] | Minimum [Member] | |||
Estimated useful life (Year) | 5 years | ||
Furniture and Fixtures [Member] | Maximum [Member] | |||
Estimated useful life (Year) | 10 years | ||
Tooling [Member] | |||
Estimated useful life (Year) | 5 years | ||
Equipment and leasehold improvements, gross | $ 4,261,077 | 4,308,967 | |
Computer Equipment [Member] | |||
Equipment and leasehold improvements, gross | $ 758,819 | 758,820 | |
Computer Equipment [Member] | Minimum [Member] | |||
Estimated useful life (Year) | 3 years | ||
Computer Equipment [Member] | Maximum [Member] | |||
Estimated useful life (Year) | 5 years | ||
Leasehold Improvements [Member] | |||
Equipment and leasehold improvements, gross | $ 2,517,226 | 2,457,006 | |
Leasehold Improvements [Member] | Minimum [Member] | |||
Estimated useful life (Year) | 3 years | ||
Leasehold Improvements [Member] | Maximum [Member] | |||
Estimated useful life (Year) | 10 years | ||
Asset under Construction [Member] | |||
Equipment and leasehold improvements, gross | $ 118,737 | $ 19,500 | |
[1] | As adjusted for the retrospective adoption of ASC 606 and ASC 842 |
Note 6 - Income Taxes (Details
Note 6 - Income Taxes (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ 713,826 | $ 713,826 | [1] | |
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 317,531 | |||
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | 312,272 | |||
Income Tax Examination, Penalties and Interest Expense, Total | 0 | 0 | ||
Unrecognized Tax Benefits, Ending Balance | 0 | $ 0 | ||
State and Local Jurisdiction [Member] | Wisconsin Department of Revenue [Member] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | $ 6,500,000 | |||
[1] | As adjusted for the retrospective adoption of ASC 606 |
Note 6 - Income Taxes - Income
Note 6 - Income Taxes - Income Tax Provision (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | [1] | |
Federal | $ (13,277) | $ 414 | |
State | 25 | 25 | |
Deferred | (13,251) | 3,041,405 | |
Total income tax (benefit) provision | $ (26,503) | $ 3,041,844 | [2],[3] |
[1] | As adjusted for the retrospective adoption of ASC 606 | ||
[2] | As adjusted for the retrospective adoption of ASC 606 | ||
[3] | As adjusted for the retrospective adoption of ASC 606 |
Note 6 - Income Taxes - Effecti
Note 6 - Income Taxes - Effective Tax Rate Reconciliation (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | [1] | |
Federal income tax liability (benefit) at statutory rate | $ 85,599 | $ (101,578) | ||
State income tax liability (benefit), net of federal income tax effect | 20 | (9,518) | ||
(Decrease) increase in valuation allowance | (328,541) | 2,266,219 | ||
Stock-based compensation | 91,179 | |||
Adjustment to deferred tax assets | 189,186 | |||
Remeasurement of deferred income taxes | $ 713,826 | 713,826 | ||
Other | 27,233 | 81,716 | ||
Total income tax (benefit) provision | $ (26,503) | $ 3,041,844 | [2],[3] | |
[1] | As adjusted for the retrospective adoption of ASC 606 | |||
[2] | As adjusted for the retrospective adoption of ASC 606 | |||
[3] | As adjusted for the retrospective adoption of ASC 606 |
Note 6 - Income Taxes - Deferre
Note 6 - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 | [1] | Jun. 30, 2017 |
Deferred compensation | $ 642,424 | $ 635,936 | ||
Stock-based compensation | 228,981 | 420,204 | ||
Accrued expenses and reserves | 705,828 | 997,924 | ||
Federal and state net operating loss carryforwards | 697,621 | 630,344 | ||
Equipment and leasehold improvements | 122,714 | 26,568 | ||
Valuation allowance | (2,382,087) | (2,710,628) | $ (444,409) | |
Total deferred income tax assets | 15,481 | 348 | ||
Other | (2,205) | (348) | ||
Net deferred income tax assets | $ 13,276 | [2] | ||
[1] | As adjusted for the retrospective adoption of ASC 606 and ASC 842 | |||
[2] | As adjusted for the retrospective adoption of ASC 606 and ASC 842 |
Note 6 - Income Taxes - Changes
Note 6 - Income Taxes - Changes in the Valuation Allowance (Details) - USD ($) | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | |||
Balance, beginning of year | $ (2,710,628) | [1] | $ (444,409) | |
Decrease (Increase) in valuation allowance | 328,541 | (2,266,219) | ||
Balance, end of year | $ (2,382,087) | $ (2,710,628) | [1] | |
[1] | As adjusted for the retrospective adoption of ASC 606 and ASC 842 |
Note 7 - Credit Facility (Detai
Note 7 - Credit Facility (Details Textual) - USD ($) | May 14, 2019 | May 12, 2010 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 29, 2017 |
Interest Expense, Debt, Total | $ 0 | $ 5,218 | |||
JP Morgan Chase Bank [Member] | Credit Agreement [Member] | |||||
Line of Credit, Current | $ 0 | ||||
Long-term Line of Credit, Total | $ 0 | ||||
JP Morgan Chase Bank [Member] | Credit Agreement [Member] | Revolving Credit Facility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 8,000,000 | $ 4,000,000 | |||
JP Morgan Chase Bank [Member] | Credit Agreement [Member] | Revolving Credit Facility [Member] | Minimum [Member] | |||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.30% | ||||
JP Morgan Chase Bank [Member] | Credit Agreement [Member] | Revolving Credit Facility [Member] | Minimum [Member] | Prime Rate [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.00% | ||||
JP Morgan Chase Bank [Member] | Credit Agreement [Member] | Revolving Credit Facility [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ||||
JP Morgan Chase Bank [Member] | Credit Agreement [Member] | Revolving Credit Facility [Member] | Maximum [Member] | |||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.45% | ||||
JP Morgan Chase Bank [Member] | Credit Agreement [Member] | Revolving Credit Facility [Member] | Maximum [Member] | Prime Rate [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | ||||
JP Morgan Chase Bank [Member] | Credit Agreement [Member] | Revolving Credit Facility [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | ||||
JP Morgan Chase Bank [Member] | Credit Agreement [Member] | Standby Letters of Credit [Member] | |||||
Line of Credit Facility, Capacity Available for Trade Purchases | $ 2,000,000 | ||||
Town Bank [Member] | Credit Agreement [Member] | |||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.00% | ||||
Long-term Line of Credit, Total | $ 0 | ||||
Debt Instrument, Term | 2 years | ||||
Town Bank [Member] | Credit Agreement [Member] | Revolving Credit Facility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 5,000,000 | ||||
Town Bank [Member] | Credit Agreement [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||||
Town Bank [Member] | Credit Agreement [Member] | Letter of Credit [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000,000 |
Note 8 - Accrued Liabilities -
Note 8 - Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 | [1] |
Cooperative advertising and promotion allowances | $ 188,985 | $ 292,873 | |
Customer credit balances | 65,937 | 53,365 | |
Current deferred compensation | 150,000 | 150,000 | |
Employee benefits | 60,178 | 60,739 | |
Legal and professional fees | 65,914 | 81,000 | |
Bonus and profit-sharing | 18,694 | 17,975 | |
Sales commissions and bonuses | 51,026 | 74,078 | |
Other | 49,779 | 58,931 | |
Total accrued liabilities | $ 650,513 | $ 788,961 | [2] |
[1] | As adjusted for retrospective adoption of ASC 606 | ||
[2] | As adjusted for the retrospective adoption of ASC 606 and ASC 842 |
Note 9 - Deferred Compensation
Note 9 - Deferred Compensation (Details Textual) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Deferred Compensation Arrangement with Individual, Distribution Paid | $ 150,000 | $ 150,000 | [1] |
Former Board of Directors Chairman [Member] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 2.60% | ||
Deferred Compensation Arrangement with Individual, Distribution Paid | $ 150,000 | 150,000 | |
Deferred Compensation Arrangement with Individual, Recorded Liability | 540,379 | 672,884 | |
Deferred Compensation Arrangement with Individual, Compensation Expense | $ 17,495 | 102,293 | |
Officer [Member] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.80% | ||
Deferred Compensation Arrangement with Individual, Recorded Liability | $ 2,029,583 | 1,871,125 | |
Deferred Compensation Arrangement with Individual, Compensation Expense | $ 158,458 | $ 147,298 | |
Deferred Compensation, Cash Compensation, Percent of Base Salary Times Number of Years of Service | 2.00% | ||
[1] | As adjusted for the retrospective adoption of ASC 606 |
Note 10 - Income (Loss) Per C_2
Note 10 - Income (Loss) Per Common and Common Stock Equivalent Share (Details Textual) - shares | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Weighted Average Number of Shares Outstanding, Basic, Total | 7,401,030 | 7,382,706 | [1] |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,523,513 | 2,405,000 | |
[1] | As adjusted for the retrospective adoption of ASC 606 |
Note 11 - Stock Options (Detail
Note 11 - Stock Options (Details Textual) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 1.57 | $ 0.85 | |
The 2012 Omnibus Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 899,308 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 1,334,370 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 302 days | ||
Stock or Unit Option Plan Expense | $ 387,556 | $ 331,560 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 1.57 | $ 0.85 | |
The 2012 Omnibus Incentive Plan [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | ||
The 2012 Omnibus Incentive Plan [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 5 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years |
Note 11 - Stock Options - Weigh
Note 11 - Stock Options - Weighted-Average Assumptions (Details) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Expected stock price volatility | 66.00% | 54.00% |
Risk free interest rate | 2.86% | 1.91% |
Expected dividend yield | ||
Expected forfeitures | 29.68% | 24.40% |
Expected life of options (Year) | 5 years 292 days | 5 years 219 days |
Note 11 - Stock Options - Optio
Note 11 - Stock Options - Options Granted, Exercised, Cancelled or Available for Exercise (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Shares under option, number of shares (in shares) | 2,405,000 | 2,180,000 | |
Shares under option, stock options price range, lower limit (in dollars per share) | $ 1.77 | $ 1.77 | $ 2.05 |
Shares under option, stock options price range, upper limit (in dollars per share) | 6.28 | 6.28 | $ 7.76 |
Shares under option, weighted average exercise price (in dollars per share) | $ 3.31 | $ 3.93 | |
Shares under option, weighted average remaining contractual life (Year) | 4 years 83 days | 3 years 222 days | 3 years 171 days |
Granted, number of shares (in shares) | 585,000 | 510,000 | |
Granted, stock options price range, lower limit (in dollars per share) | $ 2.63 | $ 1.77 | |
Granted, stock options price range, upper limit (in dollars per share) | 2.92 | 1.95 | |
Granted, weighted average exercise price (in dollars per share) | $ 2.79 | $ 1.89 | |
Exercised, number of shares (in shares) | (22,125) | ||
Exercised, stock options price range, lower limit (in dollars per share) | $ 1.77 | ||
Exercised, stock options price range, upper limit (in dollars per share) | 2.24 | ||
Exercised, weighted average exercise price (in dollars per share) | $ 2.11 | ||
Expired, number of shares (in shares) | (302,000) | (285,000) | |
Expired, stock options price range, lower limit (in dollars per share) | $ 1.77 | $ 5.47 | |
Expired, stock options price range, upper limit (in dollars per share) | 5.83 | 7.76 | |
Expired, weighted average exercise price (in dollars per share) | $ 5.62 | $ 5.55 | |
Forfeited, number of shares (in shares) | (73,000) | ||
Forfeited, stock options price range, lower limit (in dollars per share) | $ 1.77 | ||
Forfeited, stock options price range, upper limit (in dollars per share) | 2.65 | 5.30 | |
Forfeited, weighted average exercise price (in dollars per share) | $ 2.22 | ||
Shares under option, number of shares (in shares) | 2,592,875 | 2,405,000 | 2,180,000 |
Shares under option, weighted average exercise price (in dollars per share) | $ 2.96 | $ 3.31 | $ 3.93 |
Shares under option, aggregate intrinsic value of in-the-money options | $ 48,280 | ||
Exercisable, number of shares (in shares) | 1,320,291 | 1,215,082 | |
Exercisable, stock options price range, lower limit (in dollars per share) | $ 1.77 | $ 2.05 | |
Exercisable, stock options price range, upper limit (in dollars per share) | 6.28 | 6.28 | |
Exercisable, weighted average exercise price (in dollars per share) | $ 3.45 | $ 4.27 | |
Exercisable, weighted average remaining contractual life (Year) | 2 years 73 days | 2 years 113 days | |
Exercisable, aggregate intrinsic value of in-the-money options | $ 9,788 | $ 10,750 |
Note 11 - Stock Options - Summa
Note 11 - Stock Options - Summary of Intrinsic Value and Cash Received From Stock Option Exercises and Fair Value of Vested Stock Options (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | ||
Total intrinsic value of stock options exercised | $ 34,797 | ||
Cash received from stock option exercises | 46,677 | [1] | |
Total fair value of stock options vested | 374,639 | 399,595 | |
Total recognized tax benefit | $ 9,198 | ||
[1] | As adjusted for the retrospective adoption of ASC 606 |
Note 11 - Stock Options - Nonve
Note 11 - Stock Options - Nonvested Option (Details) - $ / shares | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Non-vested (in shares) | 1,189,918 | 1,074,834 |
Non-vested, weighted average grant date fair value (in dollars per share) | $ 0.90 | $ 0.96 |
Granted (in shares) | 585,000 | 510,000 |
Granted, weighted average grant date fair value (in dollars per share) | $ 1.57 | $ 0.85 |
Vested (in shares) | (429,334) | (394,916) |
Vested, weighted average grant date fair value (in dollars per share) | $ 0.87 | $ 1.01 |
Forfeited (in shares) | 73,000 | |
Forfeited, weighted average grant date fair value (in dollars per share) | $ 1.33 | |
Non-vested (in shares) | 1,272,584 | 1,189,918 |
Non-vested, weighted average grant date fair value (in dollars per share) | $ 1.19 | $ 0.90 |
Note 12 - Stock Repurchase Pr_2
Note 12 - Stock Repurchase Program (Details Textual) - USD ($) | 12 Months Ended | 290 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Apr. 30, 1995 | ||
Stock Repurchase Program, Authorized Amount | $ 45,500,000 | $ 45,500,000 | $ 200,000 | ||
Stock Repurchased and Retired During Period, Shares | 0 | 0 | 43,360,247 | ||
Cash Surrender Value of Life Insurance | $ 6,569,628 | $ 6,374,372 | [1] | $ 6,569,628 | |
Estate of Former Chairman [Member] | |||||
Treasury Stock, Repurchase Price, Percentage of Fair Value of Common Stock | 95.00% | 95.00% | |||
Stock Repurchase Program, Amount to Provide Proceeds Limitation | $ 2,500,000 | $ 2,500,000 | |||
Percentage of Promissory Note Due To Execute A | 25.00% | 25.00% | |||
Contingent Promissory Note Term | 4 years | ||||
Cash Surrender Value of Life Insurance | $ 1,150,000 | $ 1,150,000 | |||
[1] | As adjusted for the retrospective adoption of ASC 606 and ASC 842 |
Note 13 - Additional Cash Flo_3
Note 13 - Additional Cash Flow Information - Changes in Operating Assets and Liabilities (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | [1] | |
Accounts receivable | $ 1,031,180 | $ (773,330) | |
Inventories | (712,769) | 2,206,664 | |
Prepaid expenses and other current assets | 72,887 | (381) | |
Income taxes receivable | (13,285) | 439 | |
Accounts payable | 6,882 | (813,619) | |
Accrued liabilities | (138,448) | 30,834 | |
Net change | 246,447 | 650,607 | [2] |
Income taxes | 1,620 | 3,182 | |
Interest expense | $ 5,218 | ||
[1] | As adjusted for retrospective adoption of ASC 606 and ASC 842 | ||
[2] | As adjusted for the retrospective adoption of ASC 606 |
Note 14 - Deferred Revenue (Det
Note 14 - Deferred Revenue (Details Textual) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Contract with Customer, Liability, Revenue Recognized | $ 497,351 | $ 480,375 |
Note 15 - Leases (Details Textu
Note 15 - Leases (Details Textual) | 12 Months Ended |
Jun. 30, 2019USD ($) | |
Lease Extension Per Year | $ 380,000 |
Lessee, Operating Lease, Renewal Term | 5 years |
Note 15 - Leaes - Adoption of S
Note 15 - Leaes - Adoption of Standard Related to Leases (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 | [1] |
Operating lease right-of-use asset | $ 2,847,846 | $ 3,102,263 | |
Operating lease liability | 265,443 | 254,418 | |
Operating lease liability | $ 2,582,402 | $ 2,847,845 | |
[1] | As adjusted for the retrospective adoption of ASC 606 and ASC 842 |
Note 15 - Leases - Lease Expens
Note 15 - Leases - Lease Expense (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating lease cost | $ 380,000 | $ 380,000 |
Operating cash flows from operating leases | $ (380,000) | $ (380,000) |
Weighted-average remaining lease term (Year) | 9 years | 10 years |
Weighted-average discount rate | 4.25% | 4.25% |
Note 15 - Leases - Schedule of
Note 15 - Leases - Schedule of Future Minimum Lease Payments (Details) | Jun. 30, 2019USD ($) |
2020 | $ 380,000 |
2021 | 380,000 |
2022 | 380,000 |
2023 | 380,000 |
2024 | 380,000 |
Thereafter | 1,520,000 |
Total lease payments | 3,420,000 |
Present value adjustment | (572,155) |
Total lease liabilities | $ 2,847,845 |
Note 16 - Employee Benefit Pl_2
Note 16 - Employee Benefit Plans (Details Textual) - USD ($) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Employee Stock Ownership Plan (ESOP), Cash Contributions to ESOP | $ 0 | $ 0 |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50.00% | 75.00% |
Defined Contribution Plan, Cost | $ 160,171 | $ 276,217 |
Note 17 - Concentrations (Detai
Note 17 - Concentrations (Details Textual) | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||
Number of Major Customers | 5 | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Largest Single Customer [Member] | ||
Concentration Risk, Percentage | 18.00% | 21.00% |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Five Largest Customers [Member] | ||
Concentration Risk, Percentage | 45.00% | 47.00% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Largest Single Customer [Member] | ||
Concentration Risk, Percentage | 33.00% | 34.00% |
Accounts Receivable [Member] | Geographic Concentration Risk [Member] | Non-US [Member] | ||
Concentration Risk, Percentage | 10.00% | 26.00% |
Manufacturing Costs Benchmark [Member] | Supplier Concentration Risk [Member] | ||
Concentration Risk, Percentage | 75.00% | |
Number of Major Vendors | 1 |