Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Sep. 30, 2019 | Nov. 06, 2019 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | NAPCO SECURITY TECHNOLOGIES, INC | |
Entity Central Index Key | 0000069633 | |
Current Fiscal Year End Date | --06-30 | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Interactive Data Current | Yes | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | NSSC | |
Entity Common Stock, Shares Outstanding | 18,477,784 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 10,774 | $ 8,028 |
Accounts receivable, net of allowance for doubtful accounts of $88 at September 30, 2019 and June 30, 2019, and other reserves | 24,730 | 25,970 |
Inventories | 31,140 | 29,576 |
Income Taxes Receivable | 6 | |
Prepaid expenses and other current assets | 2,018 | 1,881 |
Total Current Assets | 68,668 | 65,455 |
Inventories - non-current | 6,100 | 5,262 |
Property, plant and equipment, net | 7,580 | 7,694 |
Intangible assets, net | 7,166 | 7,232 |
Operating lease right-of-use asset (Note 11) | 7,672 | |
Other assets | 262 | 265 |
TOTAL ASSETS | 97,448 | 85,908 |
CURRENT LIABILITIES | ||
Accounts payable | 5,952 | 5,135 |
Accrued expenses | 6,252 | 6,273 |
Accrued salaries and wages | 2,886 | 2,416 |
Accrued income taxes | 548 | |
Total Current Liabilities | 15,090 | 14,372 |
Deferred income taxes | 260 | 72 |
Accrued income taxes | 292 | 292 |
Operating lease liabilities, net (Note 11) | 7,384 | |
Total Liabilities | 23,026 | 14,736 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS' EQUITY | ||
Common Stock, par value $0.01 per share; 40,000,000 shares authorized; 21,227,094 shares issued; and 18,477,784 shares outstanding | 212 | 212 |
Additional paid-in capital | 17,120 | 17,103 |
Retained earnings | 74,157 | 70,924 |
Less: Treasury Stock, at cost (2,749,310 shares) | (17,067) | (17,067) |
TOTAL STOCKHOLDERS' EQUITY | 74,422 | 71,172 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 97,448 | $ 85,908 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Allowance for Doubtful Accounts Receivable | $ 88 | $ 88 |
Common Stock, Par Value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, shares authorized | 40,000,000 | 40,000,000 |
Common Stock, shares issued | 21,227,094 | 21,227,094 |
Common Stock, shares outstanding | 18,477,784 | 18,477,784 |
Treasury Stock, shares | 2,749,310 | 2,749,310 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Net sales: | ||
Equipment revenues | $ 20,921,000 | $ 19,590,000 |
Services | 5,364,000 | 3,786,000 |
Total Revenues | 26,285,000 | 23,376,000 |
Cost of sales: | ||
Equipment related expenses | 13,638,000 | 13,007,000 |
Service related expenses | 1,129,000 | 810,000 |
Cost of sales | 14,767,000 | 13,817,000 |
Gross Profit | 11,518,000 | 9,559,000 |
Research and development | 1,749,000 | 1,745,000 |
Selling, general, and administrative expenses | 6,160,000 | 6,055,000 |
Operating expenses | 7,909,000 | 7,800,000 |
Operating Income | 3,609,000 | 1,759,000 |
Other expense: | ||
Interest expense, net | 7,000 | 7,000 |
Income before Provision for Income Taxes | 3,602,000 | 1,752,000 |
Provision for Income Taxes | 369,000 | 248,000 |
Net Income | $ 3,233,000 | $ 1,504,000 |
Income per share: | ||
Basic | $ 0.17 | $ 0.08 |
Diluted | $ 0.17 | $ 0.08 |
Weighted average number of shares outstanding: | ||
Basic | 18,478,000 | 18,726,000 |
Diluted | 18,536,000 | 18,776,000 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS EQUITY - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Total |
BALANCE at Jun. 30, 2018 | $ 212,000 | $ 16,890,000 | $ (13,069,000) | $ 59,420,000 | $ 63,453,000 |
BALANCE (in shares) at Jun. 30, 2018 | 21,204,327 | (2,475,245) | |||
Implementation of ASC606 | $ 0 | 0 | $ 0 | (719,000) | (719,000) |
Repurchase of treasury shares | $ 0 | 0 | $ (549,000) | 0 | (549,000) |
Repurchase of treasury shares (in shares) | 0 | 39,163 | |||
Stock options exercised | $ 0 | 16,000 | $ 0 | 0 | 16,000 |
Stock options exercised (in shares) | 2,500 | 0 | |||
Stock-based compensation expense | $ 0 | 4,000 | $ 0 | 0 | 4,000 |
Net income | 0 | 0 | 0 | 1,504,000 | 1,504,000 |
BALANCE at Sep. 30, 2018 | $ 212,000 | 16,910,000 | $ (13,618,000) | 60,205,000 | 63,709,000 |
BALANCE (in shares) at Sep. 30, 2018 | 21,206,827 | (2,514,408) | |||
BALANCE at Jun. 30, 2019 | $ 212,000 | 17,103,000 | $ (17,067,000) | 70,924,000 | 71,172,000 |
BALANCE (in shares) at Jun. 30, 2019 | 21,227,094 | (2,749,310) | |||
Stock-based compensation expense | $ 0 | 17,000 | $ 0 | 0 | 17,000 |
Net income | 0 | 0 | 0 | 3,233,000 | 3,233,000 |
BALANCE at Sep. 30, 2019 | $ 212,000 | $ 17,120,000 | $ (17,067,000) | $ 74,157,000 | $ 74,422,000 |
BALANCE (in shares) at Sep. 30, 2019 | 21,227,094 | (2,749,310) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 3,233 | $ 1,504 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 364 | 327 |
(Recovery of) doubtful accounts | 0 | (6) |
Deferred income taxes | 188 | 153 |
Stock based compensation expense | 17 | 5 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 1,240 | 2,405 |
Inventories | (2,402) | (1,665) |
Prepaid expenses and other current assets | (137) | 69 |
Other assets | 0 | (5) |
Accounts payable, accrued expenses, accrued salaries and wages, accrued income taxes | 424 | 332 |
Net Cash Provided by Operating Activities | 2,927 | 3,119 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property, plant, and equipment | (181) | (424) |
Net Cash Used in Investing Activities | (181) | (424) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from stock option exercises | 0 | 15 |
Cash paid for purchase of treasury stock | 0 | (549) |
Net Cash Used in Financing Activities | 0 | (534) |
Net Change in Cash and Cash Equivalents | 2,746 | 2,161 |
CASH AND CASH EQUIVALENTS - Beginning | 8,028 | 5,308 |
CASH AND CASH EQUIVALENTS - Ending | 10,774 | 7,469 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Interest paid | 13 | 0 |
Income taxes paid | $ 735 | $ 259 |
Nature of Business and Summary
Nature of Business and Summary of Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2019 | |
Nature of Business and Summary of Significant Accounting Policies | |
Nature of Business and Summary of Significant Accounting Policies | NOTE 1 - Nature of Business and Summary of Significant Accounting Policies Nature of Business : Napco Security Technologies, Inc. and Subsidiaries (the "Company") is a diversified manufacturer of security products, encompassing access control systems, door-locking products, intrusion and fire alarm systems and video surveillance products for commercial and residential use. The Company also provides wireless communication service for intrusion and fire alarm systems. These products are used for commercial, residential, institutional, industrial and governmental applications, and are sold worldwide principally to independent distributors, dealers and installers of security equipment. The Company’s fiscal year begins on July 1 and ends on June 30. Historically, the end users of the Company's products want to install its products prior to the summer; therefore sales of its products historically peak in the period April 1 through June 30, the Company’s fiscal fourth quarter, and are reduced in the period July 1 through September 30, the Company’s fiscal first quarter. In addition, demand is affected by the housing and construction markets. Significant Accounting Policies : Principles of Consolidation The unaudited condensed consolidated financial statements of the Company, including these notes, have been prepared by the Company in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the rules and regulations promulgated by the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been omitted or condensed. However, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended June 30, 2019 and the notes thereto included in the Company’s Annual Report on Form 10‑K filed with the SEC on September 13, 2019. Results of consolidated operations for the interim periods are not necessarily indicative of a full year’s operating results. The unaudited condensed consolidated financial statements include the accounts of Napco Security Technologies, Inc. and all of its wholly-owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation. Accounting Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent gains and losses at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Critical estimates include management’s judgments associated with reserves for sales returns and allowances, allowance for doubtful accounts, inventory reserves, intangible assets and income taxes. Actual results could differ from those estimates. Fair Value of Financial Instruments The methods and assumptions used to estimate the fair value of the following classes of financial instruments were: Current Assets and Current Liabilities - The carrying amount of cash and cash equivalents, certificates of deposits, current receivables and payables and certain other short-term financial instruments approximate their fair value as of September 30, 2019 and June 30, 2019 due to their short-term maturities. Cash and Cash Equivalents Cash and cash equivalents include approximately $460,000 of short-term time deposits at September 30, 2019 and June 30, 2019. The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company has cash balances in banks in excess of the maximum amount insured by the Federal Deposit Insurance Corporation ("FDIC") and other international agencies as of September 30, 2019 and June 30, 2019. The Company has not historically experienced any credit losses with balances in excess of FDIC limits. Accounts Receivable Accounts receivable is stated net of the reserves for doubtful accounts of $88,000 as of September 30, 2019 and June 30, 2019. Our reserves for doubtful accounts are subjective critical estimates that have a direct impact on reported net earnings. These reserves are based upon the evaluation of our accounts receivable aging, specific exposures, sales levels and historical trends. Inventories Inventories are valued at the lower of cost or net realizable value, with cost being determined on the first-in, first-out ("FIFO") method. The reported net value of inventory includes finished saleable products, work-in-process and raw materials that will be sold or used in future periods. Inventory costs include raw materials, direct labor and overhead. The Company’s overhead expenses are applied based, in part, upon estimates of the proportion of those expenses that are related to procuring and storing raw materials as compared to the manufacture and assembly of finished products. These proportions, the method of their application, and the resulting overhead included in ending inventory, are based in part on subjective estimates and actual results could differ from those estimates. In addition, the Company records an inventory obsolescence reserve, which represents any excess of the cost of the inventory over its estimated realizable value, based on various product sales projections. This reserve is calculated using an estimated obsolescence percentage applied to the inventory based on age, historical trends, requirements to support forecasted sales, and the ability to find alternate applications of its raw materials and to convert finished product into alternate versions of the same product to better match customer demand. In addition, and as necessary, the Company may establish specific reserves for future known or anticipated events. There is inherent professional judgment and subjectivity made by both production and engineering members of management in determining the estimated obsolescence percentage. The Company also regularly reviews the period over which its inventories will be converted to sales. Any inventories expected to convert to sales beyond 12 months from the balance sheet date are classified as non-current. Property, Plant, and Equipment Property, plant, and equipment are carried at cost less accumulated depreciation. Expenditures for maintenance and repairs are charged to expense as incurred; costs of major renewals and improvements are capitalized. At the time property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are eliminated from the asset and accumulated depreciation accounts and the profit or loss on such disposition is reflected in income. Depreciation is recorded over the estimated service lives of the related assets using primarily the straight-line method. Amortization of leasehold improvements is calculated by using the straight-line method over the estimated useful life of the asset or lease term, whichever is shorter. Intangible Assets Intangible assets determined to have indefinite lives are not amortized but are tested for impairment at least annually. Intangible assets with definite lives are amortized over their useful lives. Indefinite-lived intangible assets are reviewed for impairment at least annually at the Company’s fiscal year end of June 30 or more often whenever there is an indication that the carrying amount may not be recovered. The Company’s acquisition of substantially all of the assets and certain liabilities of G. Marks Hardware, Inc. (“Marks”) in August 2008 included intangible assets recorded at fair value on the date of acquisition. The customer relationships are amortized over their estimated useful lives of twenty years. The Marks trade name was deemed to have an indefinite life. Changes in intangible assets are as follows (in thousands): September 30, 2019 June 30, 2019 Accumulated Net book Accumulated Net book Cost amortization value Cost amortization value Customer relationships $ 9,800 $ (8,534) $ 1,266 $ 9,800 $ (8,468) $ 1,332 Trade name 5,900 — 5,900 5,900 — 5,900 $ 15,700 $ (8,534) $ 7,166 $ 15,700 $ (8,468) $ 7,232 Amortization expense for intangible assets subject to amortization was approximately $66,000 and $78,000 for the three months ended September 30, 2019 and 2018, respectively. Amortization expense for each of the next five fiscal years is estimated to be as follows: 2020 - $264,000; 2021 - $223,000; 2022 - $188,000; 2023 - $159,000 and 2024 - $134,000. The remaining weighted average amortization period for intangible assets was 8.9 years and 9.9 years at September 30, 2019 and 2018, respectively. Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets in question may not be recoverable. Impairment would be recorded in circumstances where undiscounted cash flows expected to be generated by an asset are less than the carrying value of that asset. Leases Effective July 1, 2019, in accordance with Accounting Standards Codification ("ASC"), Topic 842, Leases at the inception of a contract, we assess whether the contract is, or contains, a lease. The assessment is based on (1) whether the contract involves the use of a distinct identified asset, (2) whether the Company obtains the right to substantially all the economic benefit from the use of the asset throughout the period, and (3) whether the Company has the right to direct the use of the asset. All significant lease arrangements are generally recognized at lease commencement. Operating lease right-of-use (“ROU”) assets and lease liabilities are recognized at commencement. An ROU asset and corresponding lease liability are not recorded for leases with an initial term of 12 months or less (short term leases) and we recognize lease expense for these leases as incurred over the lease term. ROU assets represent our right to use an underlying asset during the reasonably certain lease term and lease liabilities represent our obligation to make lease payments arising from the lease. We primarily use our incremental borrowing rate based on information available at the lease commencement date, in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Lease payments may be fixed or variable, however, only fixed payments or in-substance fixed payments are included in determining the lease liability. See Note 11 - Commitments for additional accounting policies and transition disclosures. Revenue Recognition The Company recognizes revenue when its customers obtain control of its products or services, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods and services. See Note 2 – Revenue Recognition for additional accounting policies and transition disclosures. Advertising and Promotional Costs Advertising and promotional costs are included in "Selling, General and Administrative" expenses in the consolidated statements of income and are expensed as incurred. Advertising expense for the three months ended September 30, 2019 and 2018 was $514,000 and $650,000, respectively. Research and Development Costs Research and development costs incurred by the Company are charged to expense as incurred and are included in operating expenses in the consolidated statements of income. Company-sponsored research and development expense for the three months ended September 30, 2019 and 2018 was $1,749,000 and $1,745,000, respectively. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company measures and recognizes the tax implications of positions taken or expected to be taken in its tax returns on an ongoing basis. Net Income per Share Basic net income per common share ("Basic EPS") is computed by dividing net income by the weighted average number of common shares outstanding. Diluted net income per common share ("Diluted EPS") is computed by dividing net income by the weighted average number of common shares and dilutive common share equivalents and convertible securities then outstanding. The following provides a reconciliation of information used in calculating the per share amounts for the three months ended September 30 (in thousands, except per share data): Net Income Weighted Average Shares Net Income per Share 2019 2018 2019 2018 2019 2018 Basic EPS $ 3,233 $ 1,504 18,478 18,726 $ 0.17 $ 0.08 Effect of Dilutive Securities: Stock Options -- -- 58 50 — — Diluted EPS $ 3,233 $ 1,504 18,536 18,776 $ 0.17 $ 0.08 There were no anti-dilutive common share equivalents for the three months ended September 30, 2019 and 2018. Stock-Based Compensation The Company has established three share incentive programs as discussed in Note 8. Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense on a straight-line basis over the vesting period. Determining the fair value of share-based awards at the grant date requires assumptions and judgments about expected volatility and forfeiture rates, among other factors. Stock-based compensation costs of $17,000 and $5,000 were recognized for the three months ended September 30, 2019 and 2018, respectively. Foreign Currency The Company has determined the functional currency of all foreign subsidiaries is the U.S Dollar. All foreign operations are considered a direct and integral part or extension of the Company’s operations. The day-to-day operations of all foreign subsidiaries are dependent on the economic environment of the U.S Dollar. Therefore, no realized or unrealized gains and losses associated with foreign currency translation are recorded for the three months ended September 30, 2019 or 2018. Comprehensive Income For the three months ended September 30, 2019 and 2018, the Company’s operations did not give rise to material items includable in comprehensive income, which were not already included in net income. Accordingly, the Company’s comprehensive income approximates its net income for all periods presented. Segment Reporting The Company’s reportable operating segments are determined based on the Company’s management approach. The management approach is based on the way that the chief operating decision maker organizes the segments within an enterprise for making operating decisions and assessing performance. The Company’s results of operations are reviewed by the chief operating decision maker on a consolidated basis and the Company operates in only one segment. The Company has presented required geographical data in Note 12. Shipping and Handling Revenues and Costs The Company records the amount billed to customers for shipping and handling in net sales ($112,000 and $101,000 in the three months ended September 30, 2019 and 2018, respectively); and classifies the costs associated with these revenues in cost of sales ($260,000 and $282,000 in the three months ended September 30, 2019 and 2018, respectively). Recently Issued and Adopted Accounting Standards On July 1, 2019, we adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02), as amended, which supersedes the lease accounting guidance under Topic 840, and generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. We adopted the new guidance using the modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application and not restating comparative periods. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases. For information regarding the impact of Topic 842 adoption, see Significant Accounting Policies - Leases and Note 11— Leases. |
Revenue Recognition and Contrac
Revenue Recognition and Contracts with Customers | 3 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition and Contracts with Customers | |
Revenue Recognition and Contracts with Customers | NOTE 2 – Revenue Recognition and Contracts with Customers On July 1, 2018, the Company adopted new guidance on revenue from contracts with customers using the modified retrospective method applied to contracts that were not completed as of July 1, 2018. Results for reporting periods beginning after July 1, 2018 are presented under the new guidance, while prior period amounts are not adjusted and continue to be reported in accordance with previous guidance. The Company recorded a net decrease to opening retained earnings of approximately $719,000 (net of tax benefit of $191,000) as of July 1, 2018, for the cumulative impact of adopting the new guidance. The impact primarily related to the change in the recognition and measurement of certain types of variable consideration, which resulted in the increase in sales allowance reserves (i.e. refund liabilities) by a net of $1,627,000 and increased other assets (i.e. return related assets) by approximately $716,000. As of September 30, 2019, the Company included return-related assets of approximately $737,000 in other current assets. Also, due to the adoption of the new standard, the Company classified certain reserves in respect of refund liabilities that were previously presented as a reduction from receivables, to current liabilities amounting to approximately $3,181,000 as of September 30, 2019. Further, amounts related to promotion payments to customers are now classified as a reduction of sales. Net Sales The Company is engaged in one major line of business: the development, manufacture, and distribution of security products, encompassing access control systems, door security products, intrusion and fire alarm systems, alarm communication services, and video surveillance products for commercial and residential use. The Company also provides wireless communication service for intrusion and fire alarm systems on a monthly basis. These products are used for commercial, residential, institutional, industrial and governmental applications, and are sold worldwide principally to independent distributors, dealers and installers of security equipment. Sales to unaffiliated customers are primarily shipped from the United States. The Company has customers worldwide with major concentrations in North America. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. For product sales the Company typically transfers control at a point in time upon shipment or delivery of the product. For monthly communication services the Company satisfies its performance obligation as the services are rendered and therefore recognizes revenue over the monthly period. Typically timing of revenue recognition coincides with the timing of invoicing to the customers, at which time the Company has an unconditional right to consideration. As such, the Company typically records a receivable when revenue is recognized. The contract with the customer states the final terms of the sale, including the description, quantity, and price of each product purchased. Payment for product sales is typically due within 30 and 180 days of the delivery date. Payment for monthly communication services is billed on a monthly basis and is typically due at the beginning of the month of service. The Company provides limited standard warranty for defective products, usually for a period of 24 to 36 months. The Company accepts returns for such defective products as well as for other limited circumstances. The Company also provides rebates to customers for meeting specified purchasing targets and other coupons or credits in limited circumstances. The Company establishes reserves for the estimated returns, rebates and credits and measures such variable consideration based on the expected value method using an analysis of historical data. Changes to the estimated variable consideration in subsequent periods are not material. The Company analyzes sales returns and is able to make reasonable and reliable estimates of product returns based on the Company’s past history. Estimates for sales returns are based on several factors including actual returns and based on expected return data communicated to it by its customers. Accordingly, the Company believes that its historical returns analysis is an accurate basis for its allowance for sales returns. Actual results could differ from those estimates. As a percentage of gross sales, sales returns, rebates and allowances were 8% and 9% for the three months ended September 30, 2019 and 2018, respectively. In accordance with ASC 606‑10‑50, the Company disaggregates revenue from contracts with customers into major product lines. The Company determines that disaggregating revenue into these categories achieves the disclosure objective to depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. As noted in the accounting policy footnote, the Company’s business consists of one operating segment. Following is the disaggregation of revenues based on major product lines (in thousands): Three months ended September 30, 2019 2018 Major Product Lines: Intrusion and access alarm products $ 8,014 $ 7,092 Door locking devices 12,907 12,498 Services 5,364 3,786 Total Revenues $ 26,285 $ 23,376 |
Business and Credit Concentrati
Business and Credit Concentrations | 3 Months Ended |
Sep. 30, 2019 | |
Business and Credit Concentrations | |
Business and Credit Concentrations | NOTE 3 - Business and Credit Concentrations An entity is more vulnerable to concentrations of credit risk if it is exposed to risk of loss greater than it would have had if it mitigated its risk through diversification of customers. Such risks of loss manifest themselves differently, depending on the nature of the concentration, and vary in significance. The Company had one customer with an accounts receivable balance that comprised 24% and 19% of the Company’s accounts receivable at September 30, 2019 and June 30, 2019, respectively. Sales to this customer comprised 13% and 10% of net sales in the three months ended September 30, 2019 and 2018, respectively . The Company had another customer with an accounts receivable balance that comprised 11% of the Company’s accounts receivable at September 30, 2019 and June 30, 2019. Sales to this customer did not exceed 10% of net sales in either of the three months ended September 30, 2019 or 2018. |
Inventories
Inventories | 3 Months Ended |
Sep. 30, 2019 | |
Inventories | |
Inventories | NOTE 4 - Inventories Inventories, net of reserves are valued at lower of cost (first-in, first-out method) or net realizable value. The Company regularly reviews parts and finished goods inventories on hand and, when necessary, records a provision for excess or obsolete inventories. The Company also regularly reviews the period over which its inventories will be converted to sales. Any inventories expected to convert to sales beyond 12 months from the balance sheet date are classified as non-current. Inventories, net of reserves consist of the following (in thousands): September 30, June 30, 2019 2019 Component parts $ 23,028 $ 21,543 Work-in-process 5,748 5,377 Finished products 8,464 7,918 $ 37,240 $ 34,838 Classification of inventories, net of reserves (in thousands): Current $ 31,140 $ 29,576 Non-current 6,100 5,262 $ 37,240 $ 34,838 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment | |
Property, Plant and Equipment | NOTE 5 – Property, Plant and Equipment Property, plant and equipment consist of the following (in thousands): September 30, June 30, 2019 2019 Useful Life in Years Land $ 904 $ 904 — Buildings 8,911 8,911 30 to 40 Molds and dies 7,337 7,333 3 to 5 Furniture and fixtures 2,695 2,691 5 to 10 Machinery and equipment 24,087 23,915 7 to 10 Leasehold improvements 1,626 1,625 Shorter of the lease term or life of asset 45,560 45,379 Less: accumulated depreciation and amortization (37,980) (37,685) $ 7,580 $ 7,694 Depreciation and amortization expense on property, plant, and equipment was approximately $295,000 and $246,000 for the three months ended September 30, 2019 and 2018, respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2019 | |
Income Taxes | |
Income Taxes | NOTE 6 - Income Taxes The provision for income taxes represents Federal, foreign, and state and local income taxes. The effective rate differs from statutory rates due to the effect of state and local income taxes, tax rates in foreign jurisdictions, global intangible low-taxed income (“GILTI”), tax benefit of R&D credits and certain nondeductible expenses. Our effective tax rate will change from quarter to quarter based on recurring and non-recurring factors including, but not limited to, the geographical mix of earnings, enacted tax legislation, and state and local income taxes. In addition, changes in judgment from the evaluation of new information resulting in the recognition, de-recognition or re-measurement of a tax position taken in a prior annual period is recognized separately in the quarter of the change. On December 22, 2017, the U.S. government passed the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act is comprehensive tax legislation effective January 1, 2018 that implements complex changes to the U.S. tax code including, but not limited to, the reduction of the corporate tax rate from 35% to 21% and includes provisions to tax GILTI. We were subject to the GILTI provisions effective for the fiscal year ended June 30, 2019. The Tax Act also imposed a one-time transition tax on its unremitted foreign earnings. ASC 740 requires filers to record the effects of tax law changes in the period enacted. However, the SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”), that permits filers to record provisional amounts during a measurement period ending no later than one year from the date of the Act’s enactment. As of March 31, 2019, the Company finalized its accounting for the income tax effects of the Tax Act and no additional expense was recorded since the final transition tax expense was equal to the $381,000 provisional expense reported in the fiscal year ended June 30, 2018. The net section 965 tax liability was $442,000 which is payable over 8 years. For the three months ended September 30, 2019, the Company recognized a net income tax expense of $369,000. During the three months ended September 30, 2019, the Company increased its reserve for uncertain income tax positions by $45,000. The Company’s practice is to recognize interest and penalties related to income tax matters in income tax expense and accrued income taxes. As of September 30, 2019, the Company had accrued interest totaling $0 and $171,000 of unrecognized net tax benefits that, if recognized, would favorably affect the Company’s effective income tax rate in any future period. The Company claims R&D tax credits on eligible development R&D expenditures. The R&D tax credits are recognized as a reduction to income tax expense. The Company does not expect that our unrecognized tax benefits will significantly change within the next twelve months. We file a consolidated U.S. income tax return and tax returns in certain state and local and foreign jurisdictions. As of September 30, 2019, we remain subject to examination in all tax jurisdictions for all relevant jurisdictional statutes for fiscal years 2016 and thereafter. In July 2019, the Company received a Form 4549-A, Income Tax Examination Changes (“IRS Notice”) from the Internal Revenue Service (“IRS”) proposing an adjustment to income for the fiscal 2016 tax year regarding deemed dividends based on its interpretation under Internal Revenue Code (“IRC”) Section 956 arising from the intercompany balances on the books of the Company. The incremental tax liability associated with the income adjustment proposed in the IRS Notice would be approximately $1.8 million, excluding any interest and penalties. The Company filed a protest with the IRS in August 2019. The Company believes that the position of the IRS with regard to this matter is inconsistent with the provisions of the IRC Section 956 and management believes that the Company will prevail, and that the tax originally paid in fiscal 2016 is correct, as such no additional reserve for this tax uncertainty has been recognized. However, there can be no assurance that this matter will ultimately be resolved in the Company's favor. The Company has identified its U.S. Federal income tax return and its State return in New York as its major tax jurisdictions. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Sep. 30, 2019 | |
Long-Term Debt | |
Long-Term Debt | NOTE 7 - Long-Term Debt As of September 30, 2019, long-term debt consisted of a revolving line of credit of $11,000,000 (“Agreement”), which expires in June 2021. There were no outstanding borrowings under the revolving line of credit at September 30, 2019 or June 30, 2019. The Agreement also provides for an interest rate option of London Interbank Offered Rate ("LIBOR") plus 1.15% to 2.00%, depending on the ratio of outstanding debt to earnings before interest, taxes, depreciation and amortization ("EBITDA"), which is to be measured and adjusted quarterly, a prime rate-based option of the prime rate plus 0.25% and other terms and conditions as more fully described in the Agreement. In addition, the Agreement provides for availability to be limited to the lesser of $11,000,000 or the result of a borrowing base formula based upon the Company’s Accounts Receivables and Inventory values net of certain deductions. The Company’s obligations under the Agreement continue to be secured by all of its assets, including but not limited to, deposit accounts, accounts receivable, inventory, and the Company’s corporate headquarters in Amityville, NY, equipment and fixtures and intangible assets. In addition, the Company’s wholly-owned subsidiaries, with the exception of the Company’s foreign subsidiaries, have issued guarantees and pledges of all of their assets to secure the Company’s obligations under the Agreement. All of the outstanding common stock of the Company’s domestic subsidiaries and 65% of the common stock of the Company’s foreign subsidiaries has been pledged to secure the Company’s obligations under the Agreement. The Agreement contains various restrictions and covenants including, among others, restrictions on payment of dividends, restrictions on borrowings and compliance with certain financial ratios, as defined in the Agreement. |
Stock Options
Stock Options | 3 Months Ended |
Sep. 30, 2019 | |
Stock Options | |
Stock Options | NOTE 8 - Stock Options The Company follows ASC Topic 718, "Compensation-Stock Compensation", which requires that all share based payments to employees, including stock options, be recognized as compensation expense in the consolidated financial statements based on their fair values and over the requisite service period. The Company recorded non-cash compensation expense relating to stock-based compensation of $17,000 and $5,000 for the three months ended September 30, 2019 and 2018, respectively ($0.00 per basic and diluted share for each period). 2012 Employee Stock Option Plan In December 2012, the stockholders approved the 2012 Employee Stock Option Plan (" 2012 Employee Plan"). The 2012 Employee Plan authorizes the granting of awards, the exercise of which would allow up to an aggregate of 950,000 shares of the Company’s common stock to be acquired by the holders of such awards. Under this plan, the Company may grant stock options, which are intended to qualify as incentive stock options ("ISOs"), to valued employees. Any plan participant who is granted ISOs and possesses more than 10% of the voting rights of the Company’s outstanding common stock must be granted an option with a price of at least 110% of the fair market value on the date of grant. Under the 2012 Employee Plan, stock options may be granted to valued employees with a term of up to 10 years at an exercise price equal to or greater than the fair market value on the date of grant and are exercisable, in whole or in part, at 20% per year beginning on the date of grant. An option granted under this plan shall vest in full upon a “change in control” as defined in the plan. At September 30, 2019, 80,500 stock options were outstanding, 35,400 stock options were exercisable and 784,900 stock options were available for grant under this plan. The fair value of each option granted during the three months ended September 30 was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: 2019 2018 Risk-free interest rates 2.10 % 3.00 % Expected lives 10 years 10 years Expected volatility 46 % 52 % Expected dividend yields 0 % 0 % The following table reflects activity under the 2012 Employee Plan for the three months ended September 30,: 2019 2018 Weighted average Weighted average Options exercise price Options exercise price Outstanding, beginning of year 72,500 $ 11.01 57,200 $ 7.09 Granted 8,000 26.06 4,000 15.30 Exercised — — (2,500) 6.31 Outstanding, end of period 80,500 $ 12.51 58,700 $ 7.68 Exercisable, end of period 35,400 $ 8.62 27,900 $ 6.57 Weighted average fair value at grant date of options granted $ 15.17 $ 5.67 Total intrinsic value of options exercised $ — $ 25,000 Total intrinsic value of options outstanding $ 1,052,000 $ 313,000 Total intrinsic value of options exercisable $ 599,000 $ 210,000 0 and 2,500 stock options were exercised during the three months ended September 30, 2019 and 2018, respectively. $0 and $16,000 of cash was received from option exercises during the three months ended September 30, 2019 and 2018, respectively, and the actual tax benefit realized for the tax deductions from option exercises was $0 for each of these periods. The following table summarizes information about stock options outstanding under the 2012 Employee Plan at September 30, 2019: Options outstanding Options exercisable Weighted average Number remaining Weighted average Number Weighted average Range of exercise prices outstanding contractual life exercise price exercisable exercise price $4.37‑$26.06 80,500 7.6 $ 12.51 35,400 $ 8.62 80,500 7.6 $ 12.51 35,400 $ 8.62 As of September 30, 2019, there was $402,000 of unearned stock-based compensation cost related to share-based compensation arrangements granted under the 2012 Employee Plan. 8,000 and 4,000 options were granted during the three months ended September 30, 2019 and 2018, respectively. 1,600 and 1,000 options vested during the three months ended September 30, 2019 and 2018, respectively. The total fair value of the options vesting during the three months ended September 30, 2019 and 2018 under this plan was $17,000 and $13,000, respectively. 2012 Non-Employee Stock Option Plan In December 2012, the stockholders approved the 2012 Non-Employee Stock Option Plan (the 2012 Non-Employee Plan). This plan authorizes the granting of awards, the exercise of which would allow up to an aggregate of 50,000 shares of the Company’s common stock to be acquired by the holders of such awards. Under this plan, the Company may grant stock options to non-employee directors and consultants to the Company and its subsidiaries. Under the 2012 Non-Employee Plan, stock options may be granted with a term of up to 10 years at an exercise price equal to or greater than the fair market value on the date of grant and are exercisable in whole or in part at 20% per year beginning on the date of grant. An option granted under this plan shall vest in full upon a “change in control” as defined in the plan. At September 30 2019, 10,200 stock options were outstanding, 3,000 stock options were exercisable and no further stock options were available for grant under this plan. The following table reflects activity under the 2012 Non-Employee Plan for the three months ended September 30,: 2019 2018 Weighted average Weighted average Options exercise price Options exercise price Outstanding, beginning of year 10,200 $ 7.99 27,800 $ 6.85 Granted — — — — Terminated/Lapsed — — — — Exercised — — — — Outstanding, end of period 10,200 $ 7.99 27,800 $ 6.85 Exercisable, end of period 3,000 $ 6.27 13,800 $ 5.61 Weighted average fair value at grant date of options granted n/a n/a Total intrinsic value of options exercised n/a n/a Total intrinsic value of options outstanding $ 179,000 $ 225,000 Total intrinsic value of options exercisable $ 58,000 $ 129,000 No stock options were exercised during either of the three months ended September 30, 2019 or 2018. No cash was received from option exercises during either of the three months ended September 30, 2019 or 2018 and the actual tax benefit realized for the tax deductions from option exercises was $0 for each of these periods. The following table summarizes information about stock options outstanding under the 2012 Non-Employee Plan at September 30, 2019: Options outstanding Options exercisable Weighted average Weighted Weighted Number remaining average exercise Number average exercise Range of exercise prices outstanding contractual life price exercisable price $4.37 - $8.70 10,200 7.5 $ 7.99 3,000 $ 6.27 10,200 7.5 $ 7.99 3,000 $ 6.27 As of September 30, 2019, there was $40,000 of unearned stock-based compensation cost related to share-based compensation arrangements granted under the 2012 Non-Employee Plan. No options were granted during either of the three months ended September 30, 2019 or 2018. No options vested during either of the three months ended September 30, 2019 or 2018. 2018 Non-Employee Stock Option Plan In December 2018, the stockholders approved the 2018 Non-Employee Stock Option Plan (the “2018 Non-Employee Plan”). This plan authorizes the granting of awards, the exercise of which would allow up to an aggregate of 50,000 shares of the Company’s common stock to be acquired by the holders of such awards. Under this plan, the Company may grant stock options to non-employee directors and consultants to the Company and its subsidiaries. Under the 2018 Non-Employee Plan, stock options may be granted with a term of up to 10 years at an exercise price equal to or greater than the fair market value on the date of grant and are exercisable in whole or in part at 20% per year beginning on the date of grant. An option granted under this plan shall vest in full upon a “change in control” as defined in the plan. At September 30, 2019, 15,200 stock options were outstanding, 2,400 stock options were exercisable and 30,000 stock options were available for grant under this plan. The following table reflects activity under the 2018 Non-Employee Plan for the three months ended September 30,: 2019 2018 Weighted average Weighted average Options exercise price Options exercise price Outstanding, beginning of year 15,200 $ 16.20 — $ — Granted — — — — Terminated/Lapsed — — — — Exercised — — — — Outstanding, end of period 15,200 $ 16.20 — $ — Exercisable, end of period 2,400 $ 16.20 — $ — Weighted average fair value at grant date of options granted n/a n/a Total intrinsic value of options exercised n/a n/a Total intrinsic value of options outstanding $ 142,000 n/a Total intrinsic value of options exercisable $ 22,000 n/a No stock options were exercised during the three months ended September 30, 2019 or 2018. No cash was received from option exercises during either of the three ended September 30, 2019 or 2018 and the actual tax benefit realized for the tax deductions from option exercises was $0 for each of these periods. The following table summarizes information about stock options outstanding under the 2018 Non-Employee Plan at September 30, 2019: Options outstanding Options exercisable Weighted average Weighted Weighted Number remaining average exercise Number average exercise Range of exercise prices outstanding contractual life price exercisable price $16.20-$16.20 15,200 9.2 $ 16.20 2,400 $ 16.20 15,200 9.2 $ 16.20 2,400 $ 16.20 As of September 30, 2019, there was $131,000 of unearned stock-based compensation cost related to share-based compensation arrangements granted under the 2018 Non-Employee Plan. No options were granted during the three months ended September 30, 2019 or 2018. No options vested during either of the three months ended September 30, 2019 or 2018. |
Stockholders' Equity Transactio
Stockholders' Equity Transactions | 3 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Transactions | |
Stockholders' Equity Transactions | NOTE 9 – Stockholders’ Equity Transactions On September 16, 2014, the Company’s board of directors authorized the repurchase of up to 1 million of the approximately 19.4 million shares of the Company’s common stock outstanding. On December 21, 2018, the Company’s board of directors authorized the repurchase of up to an additional 500,000 shares. As of September 30, 2019, there was an aggregate 434,725 shares that may yet be purchased under the two repurchase plans. The repurchase will be made from time to time in the open market or in privately negotiated transactions subject to market conditions and the market price of the common stock. Relative to the loan agreement described in Note 6, the Company's lender gave its consent to this stock repurchase plan. The Company did not repurchase any of its outstanding common stock during the three months ended September 30, 2019. The Company repurchased 39,163 shares at a weighted average price of $14.02 under this plan during the three months ended September 30, 2018. Shares repurchased through September 30, 2018 are included in the Company’s Treasury Stock as of September 30, 2018. |
401(k) Plan
401(k) Plan | 3 Months Ended |
Sep. 30, 2019 | |
401(k) Plan | |
401(k) Plan | NOTE 10 - 401(k) Plan The Company maintains a 401(k) plan (“the Plan”) that covers all U.S. non-union employees with one or more years of service and is qualified under Sections 401(a) and 401(k) of the Internal Revenue Code. Company contributions to this plan are discretionary and totaled $30,000 and $34,000 for the three months ended September 30, 2019 and 2018, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies | |
Commitments and Contingencies | NOTE 11 - Commitments and Contingencies Leases Effective July 1, 2019, the Company adopted the new lease accounting standard using the modified retrospective transition option of applying the new standard at the adoption date. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to not reassess (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases, and (3) initial direct costs for any existing leases. Adoption of the new standard resulted in the recording of an operating ROU asset and lease liabilities of approximately $7.7 million. Given the length of the lease term, the right-of-use asset and corresponding liability assume a weighted discount rate as disclosed below. A change in the rate utilized could have a material effect on the amounts reported. Financial positions for reporting periods beginning on or after July 1, 2019 are presented under new guidance, while prior period amounts are not adjusted and continue to be reported in accordance with previous guidance. Our lease obligations consist of operating leases for office equipment and a 99 year lease which commenced on April 26, 1993 with one of the Company’s foreign subsidiaries, expiring in 2092, for approximately four acres of land in the Dominican Republic at an annual cost of $288,000, on which the Company’s principal production facility is located. Operating leases are included in operating lease right-of-use assets, accrued expenses and operating lease liabilities, non-current on our condensed consolidated balance sheets For the three months ended September 30, 2019 cash payments against operating lease liabilities totaled $96,000. Supplemental balance sheet information related to operating leases was as follows: Weighted-average remaining lease term 72 years Weighted-average discount rate 3.55 % The following is a schedule, by years, of maturities of lease liabilities as of September 30, 2019 (in thousands): Year Ending June 30, Amount 2020 $ 216 2021 285 2022 275 2023 265 2024 256 Thereafter 6,375 Total $ 7,672 As previously disclosed in our 2019 Annual Report on Form 10-K and under the previous lease accounting standard, undiscounted future minimum lease payments for operating leases having initial or remaining non-cancellable lease terms in excess of one year are as follows (in thousands): Year Ending June 30, Amount 2020 $ 315 2021 314 2022 311 2023 297 2024 288 Thereafter 19,536 Total $ 21,061 Operating lease expense totaled approximately $79,000 and $83,000, for the three months ended September 30, 2019 and 2018, respectively. Litigation In the normal course of business, the Company is a party to claims and/or litigation. Management believes that the settlement of such claims and/or litigation, considered in the aggregate, will not have a material adverse effect on the Company’s financial position and results of operations. Employment and Severance Agreements As of September 30, 2019, the Company was obligated under three employment agreements and one severance agreement. The employment agreements are with the Company’s CEO, Senior Vice President of Sales and Marketing (“the SVP of Sales”) and the Senior Vice President of Engineering (“the SVP of Engineering”). The employment agreement with the CEO provides for an annual salary of $775,000, as adjusted for inflation; incentive compensation as may be approved by the Board of Directors from time to time and a termination payment in an amount up to 299% of the average of the prior five calendar year's compensation, subject to certain limitations, as defined in the agreement. The employment agreement renews annually in August unless either party gives the other notice of non-renewal at least six months prior to the end of the applicable term. The employment agreement with the SVP of Sales expires in October 2020 and provides for an annual salary of $334,000 and provides for payment equal to nine months of salary and six months of health insurance in the event of a non-voluntary termination of employment without cause or for any reason within three months of a change in control of the Company. The employment agreement with the SVP of Engineering expires in August 2020 and provides for an annual salary of $302,000 and provides for payment equal to nine months of salary and six months of health insurance in the event of a non-voluntary termination of employment without cause or for any reason within three months of a change in control of the Company. The severance agreement is with the Senior Vice President of Operations and Finance and provides for, if terminated by the Company without cause or within three months of a change in corporate control of the Registrant, severance of nine month’s salary, continued company-sponsored health insurance for six months from the date of termination and certain non-compete and other restrictive provisions. |
Geographical Data
Geographical Data | 3 Months Ended |
Sep. 30, 2019 | |
Geographical Data | |
Geographical Data | Note 12 – Geographical Data The Company is engaged in one major line of business: the development, manufacture, and distribution of security products, encompassing access control systems, door-locking products, intrusion and fire alarm systems and video surveillance products for commercial and residential use. The Company also provides wireless communication service for intrusion and fire alarm systems. These products are used for commercial, residential, institutional, industrial and governmental applications, and are sold worldwide principally to independent distributors, dealers and installers of security equipment. Sales to unaffiliated customers are primarily shipped from the United States. The Company has customers worldwide with major concentrations in North America. Three months ended September 30, 2019 2018 Sales to external customers(1): (in thousands) Domestic $ 25,819 $ 22,873 Foreign 466 503 Total Net Sales $ 26,285 $ 23,376 September 30, June 30, Identifiable assets: 2019 2019 United States $ 61,936 $ 59,683 Dominican Republic (2) 35,512 26,225 Total Identifiable Assets $ 97,448 $ 85,908 (1) All of the Company’s sales originate in the United States and are shipped primarily from the Company’s facilities in the United States. There were no sales into any one foreign country in excess of 10% of total Net Sales. (2) Consists primarily of inventories (September 30, 2019 = $24,232, June 30, 2019 = $22,549) and long-lived assets (September 30, 2019 = $11,064, June 30, 2019 = $3,443) located at the Company’s principal manufacturing facility in the Dominican Republic. |
Nature of Business and Summar_2
Nature of Business and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2019 | |
Nature of Business and Summary of Significant Accounting Policies | |
Nature of Business | Nature of Business : Napco Security Technologies, Inc. and Subsidiaries (the "Company") is a diversified manufacturer of security products, encompassing access control systems, door-locking products, intrusion and fire alarm systems and video surveillance products for commercial and residential use. The Company also provides wireless communication service for intrusion and fire alarm systems. These products are used for commercial, residential, institutional, industrial and governmental applications, and are sold worldwide principally to independent distributors, dealers and installers of security equipment. The Company’s fiscal year begins on July 1 and ends on June 30. Historically, the end users of the Company's products want to install its products prior to the summer; therefore sales of its products historically peak in the period April 1 through June 30, the Company’s fiscal fourth quarter, and are reduced in the period July 1 through September 30, the Company’s fiscal first quarter. In addition, demand is affected by the housing and construction markets. |
Principles of Consolidation | Principles of Consolidation The unaudited condensed consolidated financial statements of the Company, including these notes, have been prepared by the Company in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and pursuant to the rules and regulations promulgated by the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been omitted or condensed. However, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended June 30, 2019 and the notes thereto included in the Company’s Annual Report on Form 10‑K filed with the SEC on September 13, 2019. Results of consolidated operations for the interim periods are not necessarily indicative of a full year’s operating results. The unaudited condensed consolidated financial statements include the accounts of Napco Security Technologies, Inc. and all of its wholly-owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation. |
Accounting Estimates | Accounting Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent gains and losses at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Critical estimates include management’s judgments associated with reserves for sales returns and allowances, allowance for doubtful accounts, inventory reserves, intangible assets and income taxes. Actual results could differ from those estimates. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The methods and assumptions used to estimate the fair value of the following classes of financial instruments were: Current Assets and Current Liabilities - The carrying amount of cash and cash equivalents, certificates of deposits, current receivables and payables and certain other short-term financial instruments approximate their fair value as of September 30, 2019 and June 30, 2019 due to their short-term maturities. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include approximately $460,000 of short-term time deposits at September 30, 2019 and June 30, 2019. The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company has cash balances in banks in excess of the maximum amount insured by the Federal Deposit Insurance Corporation ("FDIC") and other international agencies as of September 30, 2019 and June 30, 2019. The Company has not historically experienced any credit losses with balances in excess of FDIC limits. |
Accounts Receivable | Accounts Receivable Accounts receivable is stated net of the reserves for doubtful accounts of $88,000 as of September 30, 2019 and June 30, 2019. Our reserves for doubtful accounts are subjective critical estimates that have a direct impact on reported net earnings. These reserves are based upon the evaluation of our accounts receivable aging, specific exposures, sales levels and historical trends. |
Inventories | Inventories Inventories are valued at the lower of cost or net realizable value, with cost being determined on the first-in, first-out ("FIFO") method. The reported net value of inventory includes finished saleable products, work-in-process and raw materials that will be sold or used in future periods. Inventory costs include raw materials, direct labor and overhead. The Company’s overhead expenses are applied based, in part, upon estimates of the proportion of those expenses that are related to procuring and storing raw materials as compared to the manufacture and assembly of finished products. These proportions, the method of their application, and the resulting overhead included in ending inventory, are based in part on subjective estimates and actual results could differ from those estimates. In addition, the Company records an inventory obsolescence reserve, which represents any excess of the cost of the inventory over its estimated realizable value, based on various product sales projections. This reserve is calculated using an estimated obsolescence percentage applied to the inventory based on age, historical trends, requirements to support forecasted sales, and the ability to find alternate applications of its raw materials and to convert finished product into alternate versions of the same product to better match customer demand. In addition, and as necessary, the Company may establish specific reserves for future known or anticipated events. There is inherent professional judgment and subjectivity made by both production and engineering members of management in determining the estimated obsolescence percentage. The Company also regularly reviews the period over which its inventories will be converted to sales. Any inventories expected to convert to sales beyond 12 months from the balance sheet date are classified as non-current. |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment are carried at cost less accumulated depreciation. Expenditures for maintenance and repairs are charged to expense as incurred; costs of major renewals and improvements are capitalized. At the time property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are eliminated from the asset and accumulated depreciation accounts and the profit or loss on such disposition is reflected in income. Depreciation is recorded over the estimated service lives of the related assets using primarily the straight-line method. Amortization of leasehold improvements is calculated by using the straight-line method over the estimated useful life of the asset or lease term, whichever is shorter. |
Intangible Assets | Intangible Assets Intangible assets determined to have indefinite lives are not amortized but are tested for impairment at least annually. Intangible assets with definite lives are amortized over their useful lives. Indefinite-lived intangible assets are reviewed for impairment at least annually at the Company’s fiscal year end of June 30 or more often whenever there is an indication that the carrying amount may not be recovered. The Company’s acquisition of substantially all of the assets and certain liabilities of G. Marks Hardware, Inc. (“Marks”) in August 2008 included intangible assets recorded at fair value on the date of acquisition. The customer relationships are amortized over their estimated useful lives of twenty years. The Marks trade name was deemed to have an indefinite life. Changes in intangible assets are as follows (in thousands): September 30, 2019 June 30, 2019 Accumulated Net book Accumulated Net book Cost amortization value Cost amortization value Customer relationships $ 9,800 $ (8,534) $ 1,266 $ 9,800 $ (8,468) $ 1,332 Trade name 5,900 — 5,900 5,900 — 5,900 $ 15,700 $ (8,534) $ 7,166 $ 15,700 $ (8,468) $ 7,232 Amortization expense for intangible assets subject to amortization was approximately $66,000 and $78,000 for the three months ended September 30, 2019 and 2018, respectively. Amortization expense for each of the next five fiscal years is estimated to be as follows: 2020 - $264,000; 2021 - $223,000; 2022 - $188,000; 2023 - $159,000 and 2024 - $134,000. The remaining weighted average amortization period for intangible assets was 8.9 years and 9.9 years at September 30, 2019 and 2018, respectively. |
Long-Lived Assets | Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets in question may not be recoverable. Impairment would be recorded in circumstances where undiscounted cash flows expected to be generated by an asset are less than the carrying value of that asset. |
Leases | Leases Effective July 1, 2019, in accordance with Accounting Standards Codification ("ASC"), Topic 842, Leases at the inception of a contract, we assess whether the contract is, or contains, a lease. The assessment is based on (1) whether the contract involves the use of a distinct identified asset, (2) whether the Company obtains the right to substantially all the economic benefit from the use of the asset throughout the period, and (3) whether the Company has the right to direct the use of the asset. All significant lease arrangements are generally recognized at lease commencement. Operating lease right-of-use (“ROU”) assets and lease liabilities are recognized at commencement. An ROU asset and corresponding lease liability are not recorded for leases with an initial term of 12 months or less (short term leases) and we recognize lease expense for these leases as incurred over the lease term. ROU assets represent our right to use an underlying asset during the reasonably certain lease term and lease liabilities represent our obligation to make lease payments arising from the lease. We primarily use our incremental borrowing rate based on information available at the lease commencement date, in determining the present value of lease payments. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Lease payments may be fixed or variable, however, only fixed payments or in-substance fixed payments are included in determining the lease liability. See Note 11 - Commitments for additional accounting policies and transition disclosures. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when its customers obtain control of its products or services, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods and services. See Note 2 – Revenue Recognition for additional accounting policies and transition disclosures. |
Advertising and Promotional Costs | Advertising and Promotional Costs Advertising and promotional costs are included in "Selling, General and Administrative" expenses in the consolidated statements of income and are expensed as incurred. Advertising expense for the three months ended September 30, 2019 and 2018 was $514,000 and $650,000, respectively. |
Research and Development Costs | Research and Development Costs Research and development costs incurred by the Company are charged to expense as incurred and are included in operating expenses in the consolidated statements of income. Company-sponsored research and development expense for the three months ended September 30, 2019 and 2018 was $1,749,000 and $1,745,000, respectively. |
Income Taxes | Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company measures and recognizes the tax implications of positions taken or expected to be taken in its tax returns on an ongoing basis. |
Net Income Per Share | Net Income per Share Basic net income per common share ("Basic EPS") is computed by dividing net income by the weighted average number of common shares outstanding. Diluted net income per common share ("Diluted EPS") is computed by dividing net income by the weighted average number of common shares and dilutive common share equivalents and convertible securities then outstanding. The following provides a reconciliation of information used in calculating the per share amounts for the three months ended September 30 (in thousands, except per share data): Net Income Weighted Average Shares Net Income per Share 2019 2018 2019 2018 2019 2018 Basic EPS $ 3,233 $ 1,504 18,478 18,726 $ 0.17 $ 0.08 Effect of Dilutive Securities: Stock Options -- -- 58 50 — — Diluted EPS $ 3,233 $ 1,504 18,536 18,776 $ 0.17 $ 0.08 There were no anti-dilutive common share equivalents for the three months ended September 30, 2019 and 2018. |
Stock-Based Compensation | Stock-Based Compensation The Company has established three share incentive programs as discussed in Note 8. Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense on a straight-line basis over the vesting period. Determining the fair value of share-based awards at the grant date requires assumptions and judgments about expected volatility and forfeiture rates, among other factors. Stock-based compensation costs of $17,000 and $5,000 were recognized for the three months ended September 30, 2019 and 2018, respectively. |
Foreign Currency | Foreign Currency The Company has determined the functional currency of all foreign subsidiaries is the U.S Dollar. All foreign operations are considered a direct and integral part or extension of the Company’s operations. The day-to-day operations of all foreign subsidiaries are dependent on the economic environment of the U.S Dollar. Therefore, no realized or unrealized gains and losses associated with foreign currency translation are recorded for the three months ended September 30, 2019 or 2018. |
Comprehensive Income | Comprehensive Income For the three months ended September 30, 2019 and 2018, the Company’s operations did not give rise to material items includable in comprehensive income, which were not already included in net income. Accordingly, the Company’s comprehensive income approximates its net income for all periods presented. |
Segment Reporting | Segment Reporting The Company’s reportable operating segments are determined based on the Company’s management approach. The management approach is based on the way that the chief operating decision maker organizes the segments within an enterprise for making operating decisions and assessing performance. The Company’s results of operations are reviewed by the chief operating decision maker on a consolidated basis and the Company operates in only one segment. The Company has presented required geographical data in Note 12. |
Shipping and Handling Revenues and Costs | Shipping and Handling Revenues and Costs The Company records the amount billed to customers for shipping and handling in net sales ($112,000 and $101,000 in the three months ended September 30, 2019 and 2018, respectively); and classifies the costs associated with these revenues in cost of sales ($260,000 and $282,000 in the three months ended September 30, 2019 and 2018, respectively). |
Recently Issued and Adopted Accounting Standards | Recently Issued and Adopted Accounting Standards On July 1, 2019, we adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02), as amended, which supersedes the lease accounting guidance under Topic 840, and generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. We adopted the new guidance using the modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application and not restating comparative periods. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases. For information regarding the impact of Topic 842 adoption, see Significant Accounting Policies - Leases and Note 11— Leases. |
Nature of Business and Summar_3
Nature of Business and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Nature of Business and Summary of Significant Accounting Policies | |
Schedule of intangible assets | Changes in intangible assets are as follows (in thousands): September 30, 2019 June 30, 2019 Accumulated Net book Accumulated Net book Cost amortization value Cost amortization value Customer relationships $ 9,800 $ (8,534) $ 1,266 $ 9,800 $ (8,468) $ 1,332 Trade name 5,900 — 5,900 5,900 — 5,900 $ 15,700 $ (8,534) $ 7,166 $ 15,700 $ (8,468) $ 7,232 |
Schedule of Earnings Per Share Reconciliation | The following provides a reconciliation of information used in calculating the per share amounts for the three months ended September 30 (in thousands, except per share data): Net Income Weighted Average Shares Net Income per Share 2019 2018 2019 2018 2019 2018 Basic EPS $ 3,233 $ 1,504 18,478 18,726 $ 0.17 $ 0.08 Effect of Dilutive Securities: Stock Options -- -- 58 50 — — Diluted EPS $ 3,233 $ 1,504 18,536 18,776 $ 0.17 $ 0.08 |
Revenue Recognition and Contr_2
Revenue Recognition and Contracts with Customers (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition and Contracts with Customers | |
Schedule of disaggregation of revenues | Following is the disaggregation of revenues based on major product lines (in thousands): Three months ended September 30, 2019 2018 Major Product Lines: Intrusion and access alarm products $ 8,014 $ 7,092 Door locking devices 12,907 12,498 Services 5,364 3,786 Total Revenues $ 26,285 $ 23,376 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Inventories | |
Schedule of Inventories, net | Inventories, net of reserves consist of the following (in thousands): September 30, June 30, 2019 2019 Component parts $ 23,028 $ 21,543 Work-in-process 5,748 5,377 Finished products 8,464 7,918 $ 37,240 $ 34,838 Classification of inventories, net of reserves (in thousands): Current $ 31,140 $ 29,576 Non-current 6,100 5,262 $ 37,240 $ 34,838 |
Property, Plant, and Equipment
Property, Plant, and Equipment (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Property, Plant and Equipment | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consist of the following (in thousands): September 30, June 30, 2019 2019 Useful Life in Years Land $ 904 $ 904 — Buildings 8,911 8,911 30 to 40 Molds and dies 7,337 7,333 3 to 5 Furniture and fixtures 2,695 2,691 5 to 10 Machinery and equipment 24,087 23,915 7 to 10 Leasehold improvements 1,626 1,625 Shorter of the lease term or life of asset 45,560 45,379 Less: accumulated depreciation and amortization (37,980) (37,685) $ 7,580 $ 7,694 |
Stock Options (Tables)
Stock Options (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
2012 Employee Stock Option Plan [Member] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of each option granted during the three months ended September 30 was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: 2019 2018 Risk-free interest rates 2.10 % 3.00 % Expected lives 10 years 10 years Expected volatility 46 % 52 % Expected dividend yields 0 % 0 % |
Schedule of Share-based Compensation, Stock Options, Activity | The following table reflects activity under the 2012 Employee Plan for the three months ended September 30,: 2019 2018 Weighted average Weighted average Options exercise price Options exercise price Outstanding, beginning of year 72,500 $ 11.01 57,200 $ 7.09 Granted 8,000 26.06 4,000 15.30 Exercised — — (2,500) 6.31 Outstanding, end of period 80,500 $ 12.51 58,700 $ 7.68 Exercisable, end of period 35,400 $ 8.62 27,900 $ 6.57 Weighted average fair value at grant date of options granted $ 15.17 $ 5.67 Total intrinsic value of options exercised $ — $ 25,000 Total intrinsic value of options outstanding $ 1,052,000 $ 313,000 Total intrinsic value of options exercisable $ 599,000 $ 210,000 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | The following table summarizes information about stock options outstanding under the 2012 Employee Plan at September 30, 2019: Options outstanding Options exercisable Weighted average Number remaining Weighted average Number Weighted average Range of exercise prices outstanding contractual life exercise price exercisable exercise price $4.37‑$26.06 80,500 7.6 $ 12.51 35,400 $ 8.62 80,500 7.6 $ 12.51 35,400 $ 8.62 |
2012 Non-Employee Stock Option Plan [Member] | |
Schedule of Share-based Compensation, Stock Options, Activity | The following table reflects activity under the 2012 Non-Employee Plan for the three months ended September 30,: 2019 2018 Weighted average Weighted average Options exercise price Options exercise price Outstanding, beginning of year 10,200 $ 7.99 27,800 $ 6.85 Granted — — — — Terminated/Lapsed — — — — Exercised — — — — Outstanding, end of period 10,200 $ 7.99 27,800 $ 6.85 Exercisable, end of period 3,000 $ 6.27 13,800 $ 5.61 Weighted average fair value at grant date of options granted n/a n/a Total intrinsic value of options exercised n/a n/a Total intrinsic value of options outstanding $ 179,000 $ 225,000 Total intrinsic value of options exercisable $ 58,000 $ 129,000 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | The following table summarizes information about stock options outstanding under the 2012 Non-Employee Plan at September 30, 2019: Options outstanding Options exercisable Weighted average Weighted Weighted Number remaining average exercise Number average exercise Range of exercise prices outstanding contractual life price exercisable price $4.37 - $8.70 10,200 7.5 $ 7.99 3,000 $ 6.27 10,200 7.5 $ 7.99 3,000 $ 6.27 |
2018 Non-Employee Stock Option Plan | |
Schedule of Share-based Compensation, Stock Options, Activity | The following table reflects activity under the 2018 Non-Employee Plan for the three months ended September 30,: 2019 2018 Weighted average Weighted average Options exercise price Options exercise price Outstanding, beginning of year 15,200 $ 16.20 — $ — Granted — — — — Terminated/Lapsed — — — — Exercised — — — — Outstanding, end of period 15,200 $ 16.20 — $ — Exercisable, end of period 2,400 $ 16.20 — $ — Weighted average fair value at grant date of options granted n/a n/a Total intrinsic value of options exercised n/a n/a Total intrinsic value of options outstanding $ 142,000 n/a Total intrinsic value of options exercisable $ 22,000 n/a |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | The following table summarizes information about stock options outstanding under the 2018 Non-Employee Plan at September 30, 2019: Options outstanding Options exercisable Weighted average Weighted Weighted Number remaining average exercise Number average exercise Range of exercise prices outstanding contractual life price exercisable price $16.20-$16.20 15,200 9.2 $ 16.20 2,400 $ 16.20 15,200 9.2 $ 16.20 2,400 $ 16.20 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies | |
Summary of cash payments against operating lease liabilities | Weighted-average remaining lease term 72 years Weighted-average discount rate 3.55 % |
Schedule of maturities of lease liabilities | The following is a schedule, by years, of maturities of lease liabilities as of September 30, 2019 (in thousands): Year Ending June 30, Amount 2020 $ 216 2021 285 2022 275 2023 265 2024 256 Thereafter 6,375 Total $ 7,672 |
Summary of future minimum lease payments for operating leases | As previously disclosed in our 2019 Annual Report on Form 10-K and under the previous lease accounting standard, undiscounted future minimum lease payments for operating leases having initial or remaining non-cancellable lease terms in excess of one year are as follows (in thousands): Year Ending June 30, Amount 2020 $ 315 2021 314 2022 311 2023 297 2024 288 Thereafter 19,536 Total $ 21,061 |
Geographical Data (Tables)
Geographical Data (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Geographical Data | |
Schedule Of Revenue From External Customers And Identifiable Assets By Geographical Areas | Three months ended September 30, 2019 2018 Sales to external customers(1): (in thousands) Domestic $ 25,819 $ 22,873 Foreign 466 503 Total Net Sales $ 26,285 $ 23,376 September 30, June 30, Identifiable assets: 2019 2019 United States $ 61,936 $ 59,683 Dominican Republic (2) 35,512 26,225 Total Identifiable Assets $ 97,448 $ 85,908 (1) All of the Company’s sales originate in the United States and are shipped primarily from the Company’s facilities in the United States. There were no sales into any one foreign country in excess of 10% of total Net Sales. (2) Consists primarily of inventories (September 30, 2019 = $24,232, June 30, 2019 = $22,549) and long-lived assets (September 30, 2019 = $11,064, June 30, 2019 = $3,443) located at the Company’s principal manufacturing facility in the Dominican Republic. |
Nature of Business and Summar_4
Nature of Business and Summary of Significant Accounting Policies - Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 |
Intangible Assets by Major Class [Line Items] | ||
Finite-lived intangible assets, Cost | $ 15,700 | $ 15,700 |
Finite-lived intangible assets, Accumulated amortization | (8,534) | (8,468) |
Finite-lived intangible assets, Net book value | 7,166 | 7,232 |
Trade name [Member] | ||
Intangible Assets by Major Class [Line Items] | ||
Finite-lived intangible assets, Cost | 5,900 | 5,900 |
Finite-lived intangible assets, Accumulated amortization | 0 | 0 |
Finite-lived intangible assets, Net book value | 5,900 | 5,900 |
Customer relationships [Member] | ||
Intangible Assets by Major Class [Line Items] | ||
Finite-lived intangible assets, Cost | 9,800 | 9,800 |
Finite-lived intangible assets, Accumulated amortization | (8,534) | (8,468) |
Finite-lived intangible assets, Net book value | $ 1,266 | $ 1,332 |
Nature of Business and Summar_5
Nature of Business and Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Nature of Business and Summary of Significant Accounting Policies | ||
Basic EPS | $ 3,233 | $ 1,504 |
Weighted Average Shares, Basic EPS | 18,478,000 | 18,726,000 |
Stock Options | 58,000 | 50,000 |
Diluted EPS | $ 3,233 | $ 1,504 |
Weighted Average Shares, Diluted EPS | 18,536,000 | 18,776,000 |
Net Income Per Share, Basic | $ 0.17 | $ 0.08 |
Net Income Per Share, Diluted | $ 0.17 | $ 0.08 |
Nature of Business and Summar_6
Nature of Business and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) | 3 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Significant Accounting Policies [Line Items] | ||||
Short-term time deposits | $ 460,000 | $ 460,000 | ||
Intangible assets amortization expense | 66,000 | $ 78,000 | ||
Estimated amortization expense- 2020 | 264,000 | |||
Estimated amortization expense - 2021 | 223,000 | |||
Estimated amortization expense - 2022 | 188,000 | |||
Estimated amortization expense - 2023 | 159,000 | |||
Estimated amortization expense- 2024 | $ 134,000 | |||
Remaining weighted average amortization period for acquired intangible assets | 8 years 10 months 24 days | 9 years 10 months 24 days | ||
Research and development costs | $ 1,749,000 | $ 1,745,000 | ||
Antidilutive options outstanding excluded from diluted EPS computations | 0 | 0 | ||
Stock-based compensation costs | $ 17,000 | $ 5,000 | ||
Foreign Currency Transaction Gain (Loss), before Tax | $ 0 | $ 0 | ||
Stock-based compensation costs, effect on EPS | $ 0 | $ 0 | ||
Number of Operating Segments | 1 | |||
Cost of Goods and Services Sold | $ 14,767,000 | $ 13,817,000 | ||
Selling, General and Administrative Expenses [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Advertising and promotion costs | 514,000 | 650,000 | ||
Sales revenue, net [Member] | Shipping and Handling [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Cost of Goods and Services Sold | 260,000 | 282,000 | ||
Cost of sales [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Research and development costs | 1,749,000 | 1,745,000 | ||
Cost of sales [Member] | Shipping and Handling [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Cost of Goods and Services Sold | 112,000 | $ 101,000 | ||
Allowance for doubtful accounts current [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Valuation allowances and reserves, balance | $ 88,000 | $ 88,000 |
Revenue Recognition and Contr_3
Revenue Recognition and Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Abstract] | ||
Equipment revenues | $ 20,921 | $ 19,590 |
Services | 5,364 | 3,786 |
Total Revenues | 26,285 | 23,376 |
Intrusion and access alarm products [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Equipment revenues | 8,014 | 7,092 |
Door locking devices [Member] | ||
Disaggregation of Revenue [Abstract] | ||
Equipment revenues | $ 12,907 | $ 12,498 |
Revenue Recognition and Contr_4
Revenue Recognition and Contracts with Customers - Additional Information (Details) - USD ($) | Jul. 01, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 719,000 | ||
New Accounting Pronouncement or Change in Accounting Principle Income Tax Expense Benefit | 191,000 | ||
New Accounting Pronouncement or Change in Accounting Principle Effect of Change In Other Assets | 716,000 | ||
Return-related assets | $ 737,000 | ||
New Accounting Pronouncement or Change in Accounting Principle Effect of Change on Receivables | $ 3,181,000 | ||
New Accounting Pronouncement or Change in Accounting Principle Effect of Change on Refund Liabilities | $ 1,627,000 | ||
Sales Revenue, Product Line [Member] | |||
Concentration Risk, Percentage | 8.00% | ||
Sales Returns and Allowances [Member] | |||
Concentration Risk, Percentage | 9.00% |
Business and Credit Concentra_2
Business and Credit Concentrations (Details) | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
Concentration Risk [Line Items] | |||
Percentage Of Single Significant Customer Balance To Total Accounts Receivables | 24.00% | 19.00% | |
Percentage Of Another Significant Customer Balance To Total Accounts Receivable | 11.00% | 11.00% | |
Sales Revenue, Net [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 10.00% | |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration Risk, Percentage | 13.00% | 10.00% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 |
Inventories | ||
Component parts | $ 23,028 | $ 21,543 |
Work-in-process | 5,748 | 5,377 |
Finished products | 8,464 | 7,918 |
Total Inventory | 37,240 | 34,838 |
Current | 31,140 | 29,576 |
Non-current | 6,100 | 5,262 |
Total Inventory | $ 37,240 | $ 34,838 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Jun. 30, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 45,560 | $ 45,379 |
Less: accumulated depreciation and amortization | (37,980) | (37,685) |
Property, plant and equipment, net | 7,580 | 7,694 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 904 | 904 |
Property, plant and equipment, useful life | 0 years | |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 8,911 | 8,911 |
Buildings [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 30 years | |
Buildings [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 40 years | |
Molds and dies [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 7,337 | 7,333 |
Molds and dies [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 3 years | |
Molds and dies [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 5 years | |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 2,695 | 2,691 |
Furniture and fixtures [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 5 years | |
Furniture and fixtures [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 10 years | |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 24,087 | 23,915 |
Machinery and equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 7 years | |
Machinery and equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, useful life | 10 years | |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 1,626 | $ 1,625 |
Property, plant and equipment, useful life | Shorter of the lease term or life of asset |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment - Additional Information (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Property, Plant and Equipment | ||
Depreciation and amortization | $ 295,000 | $ 246,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | Dec. 22, 2017 | Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 |
Income Taxes | ||||
Deferred Tax Liabilities, Tax Deferred Income | $ 1,800,000 | |||
Taxes Payable | $ 442,000 | |||
Deferred Income Tax Liability Payable period | 8 years | |||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | $ 0 | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 21.00% | ||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | $ 381,000 | |||
Unrecognized Tax Benefits, Period Increase (Decrease) | $ 45,000 | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 171,000 | |||
Income Tax Expense (Benefit) | $ 369,000 | $ 248,000 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Jun. 30, 2019 | |
Revolving line of credit expiring June 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit loan facility, maximum borrowing capacity | $ 11,000,000 | |
Long-term Line of Credit | $ 0 | $ 0 |
Third Amended and Restated Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Percentage of common stock of foreign subsidiaries pledged as collateral | 65.00% | |
Third Amended and Restated Credit Agreement [Member] | Variable Interest Rate Option One [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate over the reference rate | 1.15% | |
Third Amended and Restated Credit Agreement [Member] | Variable Interest Rate Option One [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate over the reference rate | 2.00% | |
Third Amended and Restated Credit Agreement [Member] | Variable Interest Rate Option Two [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate over the reference rate | 0.25% |
Stock Options - Weighted Averag
Stock Options - Weighted Average Assumptions of Black-Scholes Option Pricing Model to Estimate Fair Value of Options Granted (Details) - 2012 Employee Stock Option Plan [Member] | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Risk-free interest rates | 2.10% | 3.00% |
Expected lives | 10 years | 10 years |
Expected volatility | 46.00% | 52.00% |
Expected dividend yields | 0.00% | 0.00% |
Stock Options - Reflects activi
Stock Options - Reflects activity (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
2012 Employee Stock Option Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding, beginning of year | 72,500 | 57,200 |
Granted | 8,000 | 4,000 |
Exercised | 0 | (2,500) |
Outstanding, end of year | 80,500 | 58,700 |
Exercisable, end of year | 35,400 | 27,900 |
Weighted average fair value at grant date of options granted | $ 15.17 | $ 5.67 |
Total intrinsic value of options exercised | $ 0 | $ 25,000 |
Total intrinsic value of options outstanding | 1,052,000 | 313,000 |
Total intrinsic value of options exercisable | $ 599,000 | $ 210,000 |
Outstanding, beginning of year, weighted average exercise price | $ 11.01 | $ 7.09 |
Granted, weighted average exercise price | 26.06 | 15.30 |
Exercised, weighted average exercise price | 0 | 6.31 |
Outstanding, end of period, weighted average exercise price | 12.51 | 7.68 |
Exercisable, end of period, weighted average exercise price | $ 8.62 | $ 6.57 |
2012 Non-Employee Stock Option Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding, beginning of year | 10,200 | 27,800 |
Granted | 0 | 0 |
Terminated/Lapsed | 0 | 0 |
Exercised | 0 | 0 |
Outstanding, end of year | 10,200 | 27,800 |
Exercisable, end of year | 3,000 | 13,800 |
Weighted average fair value at grant date of options granted | $ 0 | |
Total intrinsic value of options exercised | $ 0 | |
Total intrinsic value of options outstanding | $ 179,000 | 225,000 |
Total intrinsic value of options exercisable | $ 58,000 | $ 129,000 |
Outstanding, beginning of year, weighted average exercise price | $ 7.99 | $ 6.85 |
Granted, weighted average exercise price | 0 | 0 |
Terminated/Lapsed, weighted average exercise price | 0 | 0 |
Exercised, weighted average exercise price | 0 | 0 |
Outstanding, end of period, weighted average exercise price | 7.99 | 6.85 |
Exercisable, end of period, weighted average exercise price | $ 6.27 | $ 5.61 |
2018 Non-Employee Stock Option Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding, beginning of year | 15,200 | |
Granted | 0 | 0 |
Terminated/Lapsed | 0 | |
Exercised | 0 | 0 |
Outstanding, end of year | 15,200 | |
Exercisable, end of year | 2,400 | |
Total intrinsic value of options outstanding | $ 142,000 | |
Total intrinsic value of options exercisable | $ 22,000 | |
Outstanding, beginning of year, weighted average exercise price | $ 16.20 | |
Granted, weighted average exercise price | 0 | |
Terminated/Lapsed, weighted average exercise price | 0 | |
Exercised, weighted average exercise price | 0 | |
Outstanding, end of period, weighted average exercise price | 16.20 | |
Exercisable, end of period, weighted average exercise price | $ 16.20 |
Stock Options - Stock options o
Stock Options - Stock options outstanding under the 2012 Employee Plan (Details) | 3 Months Ended |
Sep. 30, 2019$ / sharesshares | |
2012 Employee Stock Option Plan [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding, Number outstanding | shares | 80,500 |
Options outstanding, Weighted average remaining contractual life | 7 years 7 months 6 days |
Options outstanding, Weighted average exercise price | $ 12.51 |
Options exercisable, Number exercisable | shares | 35,400 |
Options exercisable, Weighted average exercise price | $ 8.62 |
2012 Employee Stock Option Plan [Member] | Exercise price range $4.37-$26.06 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding, Number outstanding | shares | 80,500 |
Options outstanding, Weighted average remaining contractual life | 7 years 7 months 6 days |
Options outstanding, Weighted average exercise price | $ 12.51 |
Options exercisable, Number exercisable | shares | 35,400 |
Options exercisable, Weighted average exercise price | $ 8.62 |
Exercise price upper limit | 4.37 |
Exercise price lower limit | $ 26.06 |
2012 Non-Employee Stock Option Plan [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding, Number outstanding | shares | 10,200 |
Options outstanding, Weighted average remaining contractual life | 7 years 6 months |
Options outstanding, Weighted average exercise price | $ 7.99 |
Options exercisable, Number exercisable | shares | 3,000 |
Options exercisable, Weighted average exercise price | $ 6.27 |
2012 Non-Employee Stock Option Plan [Member] | Exercise price range $4.37 - $8.70 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding, Number outstanding | shares | 10,200 |
Options outstanding, Weighted average remaining contractual life | 7 years 6 months |
Options outstanding, Weighted average exercise price | $ 7.99 |
Options exercisable, Number exercisable | shares | 3,000 |
Options exercisable, Weighted average exercise price | $ 6.27 |
Exercise price upper limit | 8.70 |
Exercise price lower limit | $ 4.37 |
2018 Non-Employee Stock Option Plan | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding, Number outstanding | shares | 15,200 |
Options outstanding, Weighted average remaining contractual life | 9 years 2 months 12 days |
Options outstanding, Weighted average exercise price | $ 16.20 |
Options exercisable, Number exercisable | shares | 2,400 |
Options exercisable, Weighted average exercise price | $ 16.20 |
2018 Non-Employee Stock Option Plan | Excercise price range $16.20 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options outstanding, Number outstanding | shares | 15,200 |
Options outstanding, Weighted average remaining contractual life | 9 years 2 months 12 days |
Options outstanding, Weighted average exercise price | $ 16.20 |
Options exercisable, Number exercisable | shares | 2,400 |
Options exercisable, Weighted average exercise price | $ 16.20 |
Exercise price upper limit | 16.20 |
Exercise price lower limit | $ 16.20 |
Stock Options - Additional Info
Stock Options - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share Based Compensation Expense | $ 17,000 | $ 5,000 | ||
Share based Compensation Cost Effect On Earnings Per Share Basic And Diluted | $ 0 | $ 0 | ||
Proceeds From Stock Options Exercised | $ 0 | $ 15,000 | ||
2012 Employee Stock Option Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for issuance under the plan | 950,000 | |||
Percentage Applied To Market Price To Set Grant Price For Grantee Owning Ten Percent Or More Of Entity Common Stock Outstanding | 110.00% | |||
Term of stock option awards | 10 years | |||
Annual rate at which share-based compensation awards vest | 20.00% | |||
Number of stock options, exercisable | 35,400 | 27,900 | ||
Number of stock options available for grant | 784,900 | |||
Unearned stock-based compensation cost related to non-vested awards | $ 402,000 | |||
Fair value of stock options that vested during the period | $ 17,000 | $ 13,000 | ||
Fair value of stock options that vested during the period (shares) | 1,600 | 1,000 | ||
Tax benefit from ISO option exercise | $ 0 | $ 0 | ||
Number of shares outstanding, end of period | 80,500 | 58,700 | 72,500 | 57,200 |
Common Stock, Voting Rights | Any plan participant who is granted ISOs and possesses more than 10% of the voting rights of the Company's outstanding common stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 2,500 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 8,000 | 4,000 | ||
Proceeds From Stock Options Exercised | $ 0 | $ 16,000 | ||
2012 Non-Employee Stock Option Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for issuance under the plan | 50,000 | |||
Term of stock option awards | 10 years | |||
Annual rate at which share-based compensation awards vest | 20.00% | |||
Number of stock options, exercisable | 3,000 | 13,800 | ||
Number of stock options available for grant | 0 | 0 | ||
Fair value of stock options that vested during the period (shares) | 0 | 0 | ||
Tax benefit from ISO option exercise | $ 0 | $ 0 | ||
Allocated Share Based Compensation Expense | $ 40,000 | |||
Number of shares outstanding, end of period | 10,200 | 27,800 | 10,200 | 27,800 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | ||
Proceeds From Stock Options Exercised | $ 0 | $ 0 | ||
2018 Non-Employee Stock Option Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for issuance under the plan | 50,000 | |||
Term of stock option awards | 10 years | |||
Annual rate at which share-based compensation awards vest | 20.00% | |||
Number of stock options, exercisable | 2,400 | |||
Number of stock options available for grant | 30,000 | |||
Fair value of stock options that vested during the period (shares) | 0 | 0 | ||
Tax benefit from ISO option exercise | $ 0 | $ 0 | $ 0 | |
Allocated Share Based Compensation Expense | $ 131,000 | |||
Number of shares outstanding, end of period | 15,200 | 15,200 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | ||
Proceeds From Stock Options Exercised | $ 0 | $ 0 |
Stockholders' Equity Transact_2
Stockholders' Equity Transactions (Details) - $ / shares | 3 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 21, 2018 | Sep. 16, 2014 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 500,000 | 1,000,000 | |||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 434,725 | ||||
Common Stock Shares Outstanding | 18,477,784 | 18,477,784 | 19,400,000 | ||
Treasury Stock Acquired, Average Cost Per Share | $ 14.02 | ||||
Treasury Stock [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Treasury Stock, Shares, Acquired | 39,163 |
401(k) Plan (Details)
401(k) Plan (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Napco Technologies 401 k Plan [Member] | ||
Schedule of Deferred Compensation Plans [Line Items] | ||
Deferred compensation plan expense | $ 30,000 | $ 34,000 |
Commitments and Contingencies -
Commitments and Contingencies - Weighted - average lease term (Details) | Sep. 30, 2019 |
Commitments and Contingencies | |
Weighted-average remaining lease term | 72 years |
Weighted-average discount rate | 3.55% |
Commitments and Contingencies_2
Commitments and Contingencies - Lease liabilities (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Schedule, by years, of maturities of lease liabilities | |
2020 | $ 216 |
2021 | 285 |
2022 | 275 |
2023 | 265 |
2024 | 256 |
There after | 6,375 |
Total | $ 7,672 |
Commitments and Contingencies_3
Commitments and Contingencies - Future minimum lease payaments (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Future minimum lease payments for operating leases | |
2020 | $ 315 |
2021 | 314 |
2022 | 311 |
2023 | 297 |
2024 | 288 |
Thereafter | 19,536 |
Total | $ 21,061 |
Commitments and Contingencies_4
Commitments and Contingencies - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jul. 01, 2019 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease right of use asset | $ 7,672,000 | ||
Operating Lease Payments | 96,000,000 | ||
Accounting Standards Update 2016-02 [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease right of use asset | $ 7,700,000 | ||
Operating lease liability | $ 7,700,000 | ||
Employment and Severance Agreements [Member] | Chief executive officer [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Annual salary commitment | $ 775,000 | ||
Termination pay commitment rate applied to the average of the prior five calendar years compensation | 299.00% | ||
Employment and Severance Agreements [Member] | Senior Vice President of Sales and Marketing [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Expiration Year | 2020 | ||
Annual salary commitment | $ 334,000 | ||
Employment and Severance Agreements [Member] | Senior Vice President of Engineering [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Expiration Year | 2020 | ||
Annual salary commitment | $ 302,000 | ||
Land lease in Dominican Republic expiring 2092 [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Expiration Year | 2092 | ||
Annual minimum rent | $ 288,000 | ||
Lessee, Operating Lease, Term of Contract | 99 years | ||
Leased property and equipment, excluding foreign land [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease expense | $ 79,000 | $ 83,000 |
Geographical Data (Details)
Geographical Data (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Net Sales | $ 26,285 | $ 23,376 | |
Total Identifiable Assets | 97,448 | $ 85,908 | |
Domestic [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Net Sales | 25,819 | 22,873 | |
Foreign [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Net Sales | 466 | $ 503 | |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Identifiable Assets | 61,936 | 59,683 | |
Dominican Republic [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Identifiable Assets | $ 35,512 | $ 26,225 |
Geographical Data - Additional
Geographical Data - Additional Information (Details) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Inventories | $ 31,140,000 | $ 29,576,000 |
Fixed assets | 7,580,000 | 7,694,000 |
Dominican Republic [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Inventories | 24,232 | 22,549 |
Fixed assets | $ 11,064 | $ 3,443 |