Cover
Cover - shares | 3 Months Ended | |
Sep. 30, 2022 | Nov. 02, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --06-30 | |
Entity File Number | 0-14942 | |
Entity Registrant Name | PRO-DEX, INC. | |
Entity Central Index Key | 0000788920 | |
Entity Tax Identification Number | 84-1261240 | |
Entity Incorporation, State or Country Code | CO | |
Entity Address, Address Line One | 2361 McGaw Avenue | |
Entity Address, City or Town | Irvine | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92614 | |
City Area Code | (949) | |
Local Phone Number | 769-3200 | |
Title of 12(b) Security | Common Stock, no par value | |
Trading Symbol | PDEX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 3,580,316 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 2,798 | $ 849 |
Investments | 813 | 755 |
Accounts receivable, net of allowance for doubtful accounts of $2 and $0 at September 30, 2022 and at June 30, 2022, respectively | 11,045 | 15,384 |
Deferred costs | 587 | 710 |
Inventory | 15,664 | 12,678 |
Prepaid expenses and other current assets | 928 | 790 |
Total current assets | 31,835 | 31,166 |
Land and building, net | 6,319 | 6,343 |
Equipment and leasehold improvements, net | 4,852 | 4,833 |
Right of use asset, net | 2,156 | 2,248 |
Intangibles, net | 108 | 118 |
Deferred income taxes, net | 764 | 797 |
Investments | 1,889 | 1,779 |
Other assets | 42 | 42 |
Total assets | 47,965 | 47,326 |
Current Liabilities: | ||
Accounts payable | 3,549 | 3,761 |
Accrued liabilities | 3,245 | 2,751 |
Income taxes payable | 731 | 544 |
Deferred revenue | 851 | 1,013 |
Note payable | 3,297 | 3,285 |
Total current liabilities | 11,673 | 11,354 |
Lease liability, net of current portion | 1,954 | 2,054 |
Notes payable, net of current portion | 9,922 | 10,250 |
Total non-current liabilities | 11,876 | 12,304 |
Total liabilities | 23,549 | 23,658 |
Shareholders’ Equity: | ||
Common stock; no par value; 50,000,000 shares authorized; 3,606,422 and 3,596,131 shares issued and outstanding at September 30, 2022 and June 30, 2022, respectively | 7,354 | 7,682 |
Retained earnings | 17,062 | 15,986 |
Total shareholders’ equity | 24,416 | 23,668 |
Total liabilities and shareholders’ equity | $ 47,965 | $ 47,326 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 2 | $ 0 |
Common shares, par value | $ 0 | $ 0 |
Common shares, authorized | 50,000,000 | 50,000,000 |
Common shares, issued | 3,606,422 | 3,596,131 |
Common shares, outstanding | 3,606,422 | 3,596,131 |
CONDENSED CONSOLIDATED INCOME S
CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||
Net sales | $ 11,087 | $ 9,988 |
Cost of sales | 8,131 | 6,560 |
Gross profit | 2,956 | 3,428 |
Operating expenses: | ||
Selling expenses | 53 | 37 |
General and administrative expenses | 1,024 | 1,093 |
Research and development costs | 929 | 980 |
Total operating expenses | 2,006 | 2,110 |
Operating income | 950 | 1,318 |
Other income (expense): | ||
Interest and dividend income | 218 | 24 |
Realized gain on sale of marketable equity investments | 6 | |
Unrealized gain on marketable equity investments | 250 | 149 |
Interest expense | (130) | (120) |
Total other income | 344 | 53 |
Income before income taxes | 1,294 | 1,371 |
Provision for income taxes | 218 | 307 |
Net income | $ 1,076 | $ 1,064 |
Basic net income per share | $ 0.30 | $ 0.29 |
Diluted net income per share | $ 0.29 | $ 0.28 |
Basic | 3,616,392 | 3,651,334 |
Diluted | 3,694,959 | 3,777,118 |
Common shares outstanding | 3,606,422 | 3,666,319 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Retained Earnings [Member] | Total |
Balance at beginning at Jun. 30, 2021 | $ 7,953 | $ 12,131 | |
Share-based compensation expense | 300 | ||
Stock option exercise | |||
Share repurchases | (95) | ||
Shares withheld from common stock issued to pay employee payroll taxes | |||
ESPP shares issued | 30 | ||
Net income | 1,064 | 1,064 | |
Balance at end at Sep. 30, 2021 | 8,188 | 13,195 | 21,383 |
Balance at beginning at Jun. 30, 2022 | 7,682 | 15,986 | 23,668 |
Share-based compensation expense | 207 | ||
Stock option exercise | 8 | ||
Share repurchases | (354) | ||
Shares withheld from common stock issued to pay employee payroll taxes | (223) | ||
ESPP shares issued | 34 | ||
Net income | 1,076 | 1,076 | |
Balance at end at Sep. 30, 2022 | $ 7,354 | $ 17,062 | $ 24,416 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 1,076 | $ 1,064 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 193 | 184 |
Share-based compensation | 207 | 300 |
Unrealized (gain) loss on marketable equity investments | (250) | (149) |
Non-cash lease expense | 2 | 6 |
Amortization of loan fees | 2 | 2 |
Gain on sale of investments | (6) | |
Deferred income taxes | 32 | |
Bad debt expense | 2 | 5 |
Changes in operating assets and liabilities: | ||
Accounts receivable and other receivables | 4,337 | 834 |
Deferred costs | 123 | 9 |
Inventory | (2,986) | (470) |
Prepaid expenses and other assets | (138) | 284 |
Accounts payable and accrued expenses | 273 | 177 |
Deferred revenue | (162) | 143 |
Income taxes payable | 187 | 312 |
Net cash provided by operating activities | 2,892 | 2,701 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of equipment and improvements | (178) | (848) |
Purchases of investments | (14) | |
Increase in intangibles | (12) | |
Proceeds from sale of investments | 88 | |
Net cash used in investing activities | (90) | (874) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Principal payments on notes payable | (1,318) | (306) |
Proceeds from Minnesota Bank & Trust loans, net of origination fees | 1,000 | |
Proceeds from stock option exercises and ESPP contributions | 42 | 30 |
Payments of employee taxes on net issuance of common stock | (223) | |
Repurchases of common stock | (354) | (95) |
Net cash used in financing activities | (853) | (371) |
Net increase in cash and cash equivalents | 1,949 | 1,456 |
Cash and cash equivalents, beginning of period | 849 | 3,721 |
Cash and cash equivalents, end of period | 2,798 | 5,177 |
Non-cash investing and financing activity: | ||
Cashless stock option exercise | 45 | |
Cash paid during the period for: | ||
Interest | 89 | 121 |
Income taxes, net of refunds | $ 241 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | NOTE 1. BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of Pro-Dex, Inc. (“we,” “us,” “our,” “Pro-Dex,” or the “Company”) have been prepared in accordance with principles generally in United States (“U.S. GAAP”) interim financial information and with the instructions to Form 10-Q and Regulation S-K. Accordingly, they not include all of the information and footnotes required U.S. GAAP for complete financial statements. These financial statements should be read in conjunction with the financial statements presented in our Annual Report Form 10-K for the fiscal year ended June 30, 2022. In the opinion of management, all adjustments considered necessary for fair presentation have been included. The results of operations for such interim periods are not necessarily indicative of the results that may be expected for the full year. For further information, refer to the financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended June 30, 2022. |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 3 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | NOTE 2. DESCRIPTION OF BUSINESS We specialize in the design, development and manufacture of autoclavable, battery-powered and electric, multi-function surgical drivers and shavers used primarily in the orthopedic, thoracic, and maxocranial facial markets. We have patented adaptive torque-limiting software and proprietary sealing solutions which appeal to our customers, primarily medical device distributors. We also manufacture and sell rotary air motors to a wide range of industries. In August 2020, we formed a wholly owned subsidiary, PDEX Franklin, LLC (“PDEX Franklin”), to hold title for an approximate 25,000 square foot industrial building in Tustin, California (the “Franklin Property”) that we acquired on November 6, 2020, in order to allow for the continued growth of our business. The condensed consolidated financial statements include the accounts of the Company and PDEX Franklin and all significant inter-company accounts and transactions have been eliminated. This subsidiary has no separate operations. |
NET SALES
NET SALES | 3 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
NET SALES | NOTE 3. NET SALES The following table presents the disaggregation of net sales by revenue recognition model (in thousands): Schedule of disaggregation of net sales Three months ended 2022 2021 Net Sales: Over-time revenue recognition $ 907 $ 196 Point-in-time revenue recognition 10,180 9,792 Total net sales $ 11,087 $ 9,988 The timing of revenue recognition, billings, and cash collections results in billed accounts receivables, unbilled receivables (presented as deferred costs on our condensed consolidated balance sheets) and customer advances and deposits (presented as deferred revenue on our condensed consolidated balance sheets), where applicable. Amounts are generally billed as work progresses in accordance with agreed upon milestones. The over-time revenue recognition model consists of non-recurring engineering (“NRE”) and prototype services and typically relates to NRE services related to the evaluation, design or customization of a medical device and is typically recognized over time utilizing an input measure of progress based on costs incurred compared to the estimated total costs upon completion. During the three months ended September 30, 2022 and 2021, we recorded $ 551,000 0 851,000 The following tables summarize our contract assets and liability balances (in thousands): Schedule of contract assets and liability As of and for the 2022 2021 Contract assets beginning balance $ 710 $ 212 Expenses incurred during the year 333 96 Amounts reclassified to cost of sales (448 ) (111 ) Amounts allocated to discounts for standalone selling price (8 ) (12 ) Contract assets ending balance $ 587 $ 185 As of and for the 2022 2021 Contract liabilities beginning balance $ 1,013 $ 150 Payments received from customers 389 143 Amounts reclassified to revenue (551 ) — Contract liabilities ending balance $ 851 $ 293 |
COMPOSITION OF CERTAIN FINANCIA
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS | 3 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS | NOTE 4. COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS Investments Investments are stated at fair market value and consist of the following (in thousands): Schedule of investments September 30, June 30, Marketable equity securities - short-term $ 813 $ 755 Marketable equity securities - long-term 1,889 1,779 Total marketable equity securities $ 2,702 $ 2,534 Investments at September 30, 2022 and June 30, 2022 had an aggregate cost basis $ 2,714,000 2,796,000 12,000 (gross unrealized losses of $ 325,000 313,000 the investments included net unrealized losses of $ 262,000 369,000 107,000 Of the total marketable equity securities at September 30, 2022 and June 30, 2022, $ 813,000 755,000 We invest surplus cash from time to time through our Investment Committee, which is comprised of one management director, Mr. Van Kirk, and two non-management directors, Mr. Cabillot and Mr. Swenson, who chairs the committee. Both Mr. Cabillot and Mr. Swenson are active investors with extensive portfolio management expertise. We leverage the experience of these committee members to make investment decisions for the investment of our surplus operating capital or borrowed funds. Additionally, many of our securities holdings include stocks of public companies that either Messrs. Swenson or Cabillot or both may own from time to time either individually or through the investment funds that they manage, or other companies whose boards they sit on, such as Air T, Inc. Inventory Inventory is stated at the lower of cost (first-in, first-out) or net realizable value and consists of the following (in thousands): Schedule of inventory September 30, June 30, Raw materials/purchased components $ 7,641 $ 6,323 Work in process 4,104 3,463 Sub-assemblies/finished components 2,183 2,118 Finished goods 1,736 774 Total inventory $ 15,664 $ 12,678 Intangibles Intangibles consist of the following (in thousands): Schedule of intangibles September 30, June 30, Patent-related costs $ 208 $ 208 Less accumulated amortization (100 ) (90 ) $ 108 $ 118 Patent-related costs consist of legal fees incurred in connection with both patent applications and a patent issuance, and will be amortized over the estimated life of the product(s) that is or will be utilizing the technology, or expensed immediately in the event the patent office denies the issuance of the patent. Future amortization expense is estimated to be $ 27,000 3 |
WARRANTY
WARRANTY | 3 Months Ended |
Sep. 30, 2022 | |
Guarantees and Product Warranties [Abstract] | |
WARRANTY | NOTE 5. WARRANTY The warranty accrual is based on historical costs of warranty repairs and expected future identifiable warranty expenses and is included in accrued expenses in the accompanying balance sheets. As of September 30, 2022 and June 30, 2022, the warranty reserve amounted to $ 366,000 340,000 Information regarding the accrual for warranty costs for the three months ended September 30, 2022 and 2021 are as follows (in thousands): Schedule of accrual warranty costs As of and for the 2022 2021 Beginning balance $ 340 $ 221 Accruals during the period 54 32 Changes in estimates of prior period warranty accruals 14 (8 ) Warranty amortization/utilization (42 ) (13 ) Ending balance $ 366 $ 232 |
NET INCOME PER SHARE
NET INCOME PER SHARE | 3 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | NOTE 6. NET INCOME PER SHARE We calculate basic net income per share by dividing net income by the weighted-average number of common shares outstanding during the reporting period. Diluted income per share reflects the effects of potentially dilutive securities, which consist entirely of outstanding stock options and performance awards. The following table presents reconciliations of the numerators and denominators of the basic and diluted income per share computations. In the tables below, income amounts represent the numerator, and share amounts represent the denominator (in thousands, except per share amounts): Schedule of weighted average shares outstanding calculation of basic and diluted per share Three Months Ended 2021 2021 Basic: Net income $ 1,076 $ 1,064 Weighted-average shares outstanding 3,616 3,651 Basic earnings per share $ 0.30 $ 0.29 Diluted: Net income $ 1,076 $ 1,064 Weighted-average shares outstanding 3,616 3,651 Effect of dilutive securities 79 126 Weighted-average shares used in calculation of diluted earnings per share 3,695 3,777 Diluted earnings per share $ 0.29 $ 0.28 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 7. INCOME TAXES Deferred income taxes are provided on liability method whereby deferred tax assets and liabilities are recognized for temporary differences. Temporary differences are the differences between the reported amounts assets and liabilities and their tax bases. Deferred assets are reduced by valuation allowance when, in the opinion management, it is more likely than not that some portion or deferred tax assets will not realized. Deferred tax assets and liabilities are adjusted for the effects changes in tax laws and rates the date of enactment. Significant management judgment is required in determining our provision for income taxes and the recoverability our deferred tax assets. Such determination is based primarily on our historical taxable income or loss, with some consideration given our estimates future taxable income loss by jurisdictions in which we operate and the period over which our deferred tax assets would be recoverable. We recognize accrued interest and penalties related to unrecognized tax benefits when applicable. As of September 30, 2022 and 2021, we recognized accrued interest of $ 5,000 51,000 17 22 We are subject to U.S. federal income tax, well income tax multiple state tax jurisdictions. We are currently open audit under the statute of limitations by the Internal Revenue Service for the years ended June 30, 2019 and later. Our state income tax returns are open audit under the statute of limitations for the years ended June 30, 2018 and later. However, because of our prior net operating losses and research credit carryovers, our tax years from June 30, 2007 are open to audit. We do not anticipate significant change the total amount unrecognized tax benefits within the next months. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 3 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 8. SHARE-BASED COMPENSATION Through 2014, we had two equity compensation plans, the Second Amended and Restated 2004 Stock Option Plan (the “Employee Stock Option Plan”) and the Amended and Restated 2004 Directors’ Stock Option Plan (the “Directors’ Stock Option Plan”) (collectively, the “Former Stock Option Plans”). The Employee Stock Option Plan and Directors’ Stock Option Plan were terminated in June 2014 and December 2014, respectively. In September 2016, our Board approved the establishment of the 2016 Equity Incentive Plan, which was approved by our shareholders at our 2016 Annual Meeting. The 2016 Equity Incentive Plan provides for the award of up to 1,500,000 200,000 372,000 Former Stock Option Plans There were no during the three months ended September 30, 2022 and 2021. September 30, 2022, there was no outstanding stock options under those plans are fully vested. 1,500 2.14 0.35 23,000 5,000 25,000 1.73 1.80 Performance Awards In December 2017, the Compensation Committee of our Board of Directors granted 200,000 completion of service periods that range from 7 months to 9.5 years at inception and the achievement of our common stock trading at certain pre-determined prices. 4.46 48,000 16.90 17,500 20.34 30,000 21,000 292,000 2.76 On July 1, 2022, it was determined by the Compensation Committee of our Board of Directors that the vesting of performance awards for 37,500 23,641 223,000 Non-Qualified Stock Options In December 2020, the Compensation Committee of our Board of Directors granted 310,000 completion of service periods that range from 18 months to 10.5 years at inception and the achievement of our common stock trading at certain pre-determined prices. 171,000 274,000 16.72 2.9 In February 2021, the Compensation Committee of our Board of Directors granted 62,000 completion of service periods that range from 4 months to 1.3 years at inception and the achievement of our common stock trading at certain pre-determined prices. 3.16 Employee Stock Purchase Plan In September 2014, our Board approved the establishment of an Employee Stock Purchase Plan (the “ESPP”). The ESPP conforms to the provisions of Section 423 of the Internal Revenue Code, has coterminous offering and purchase periods of six months, and bases the pricing to purchase shares of our common stock on a formula so as to result in a per-share purchase price that approximates a 15% discount from the market price of a share of our common stock at the end of the purchase period. 704,715 During the first quarters ended September 30, 2022 and 2021, 2,503 1,130 13.52 26.17 29,542 6,000 5,000 |
MAJOR CUSTOMERS & SUPPLIERS
MAJOR CUSTOMERS & SUPPLIERS | 3 Months Ended |
Sep. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
MAJOR CUSTOMERS & SUPPLIERS | NOTE 9. MAJOR CUSTOMERS & SUPPLIERS Information with respect to customers accounted for sales in excess of 10 either of three-month periods ended September 30, 2022 and 2021 is as follows (in thousands, except percentages): Schedule of sales by major customers Three Months Ended September 30, 2022 2021 Amount Percent of Amount Percent of Total revenue $ 11,087 100 % $ 9,988 100 % Customer concentration: Customer 1 $ 7,481 68 % $ 6,991 70 % Customer 2 2,156 19 % 879 9 % Total $ 9,637 87 % $ 7,870 79 % Information with respect to accounts receivable from those customers that comprised more than 10 Schedule of accounts receivable of major customers September 30, 2022 June 30, 2022 Total gross accounts receivable $ 11,047 100 % $ 15,384 100 % Customer concentration: Customer 1 $ 9,055 82 % $ 11,551 75 % Customer 2 1,890 17 % 2,152 14 % Total $ 10,945 99 % $ 13,703 89 % During the three months ended September 30, 2022 and 2021, we had three suppliers that each accounted for more than 10% of total inventory purchases. Amounts owed to the fiscal 2022 significant suppliers at September 30, 2022 totaled $970,000, $266,000 and $368,000, respectively, and at June 30, 2022 totaled $721,000, $430,000 and $372,000, respectively. |
NOTES PAYABLE AND FINANCING TRA
NOTES PAYABLE AND FINANCING TRANSACTIONS | 3 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE AND FINANCING TRANSACTIONS | NOTE 10. NOTES PAYABLE AND FINANCING TRANSACTIONS Minnesota Bank & Trust (“MBT”) On November 6, 2020 (the “Closing Date”), PDEX Franklin, a newly created wholly owned subsidiary of the Company, purchased an approximate 25,000 square foot industrial building in Tustin, California (the “Franklin Property”). A portion of the purchase price was financed by a loan from MBT to PDEX Franklin in the principal amount of approximately $ 5.2 26,037 The Property Loan bears interest at a fixed rate of 3.55 30,000 November 1, 2030 3.1 Any prepayment of the Property Loan (other than monthly scheduled interest and principal payments), is subject to a prepayment fee equal to 4% of the principal amount prepaid for any prepayment made during the first or second year, 3% of the principal amount prepaid for any prepayment made during the third or fourth year, 2% of the principal amount prepaid for any prepayment made during the fifth or sixth year, and 1% of the principal amount prepaid for any prepayment made during the seventh or eighth year. 4,889,000 On the Closing Date, we also entered into an Amended and Restated Credit Agreement with MBT (the “Amended Credit Agreement”), providing for a $ 7,525,000 1,000,000 2,000,000 3,770,331 3,000,000 1,000,000 The Term Loan A matures on November 1, 2027 3.84 97,000 5,556,000 The Term Loan B matures on November 1, 2027 3.84 15,000 827,000 The Revolving Loan may be borrowed against from time to time through its maturity date of November 5, 2023 2.75 2,000,000 Any payment on the Loans not made within seven days after the due date is subject to a late payment fee equal to 5 3 The Amended Credit Agreement, Security Agreement, Term Note A, Term Note B, and Revolving Note contain representations and warranties, affirmative, negative and financial covenants, and events of default that are customary for loans of this type. |
COMMON STOCK
COMMON STOCK | 3 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
COMMON STOCK | NOTE 11. COMMON STOCK Share Repurchase Program In December 2019, our Board approved a new share repurchase program authorizing us to repurchase up to 1 million 20,853 354,000 3,616 95,000 1,131,599 16.0 |
LEASES
LEASES | 3 Months Ended |
Sep. 30, 2022 | |
Leases | |
LEASES | NOTE 12. LEASES Our operating lease right-of-use asset and long-term liability are presented separately on our condensed consolidated balance sheet. The current portion of our operating lease liability as of September 30, 2022, in the amount of $ 388,000 As of September 30, 2022, our operating lease has a remaining lease term of five years and an imputed interest rate of 5.53 123,000 12,000 As of September 30, 2022, the maturity of our lease liability is as follows (in thousands): Schedule of Maturities of Lease Liabilities Operating Fiscal Year: 2023 $ 381 2024 519 2025 535 2026 551 2027 567 Thereafter 143 Total lease payments 2,696 Less imputed interest (353 ) Total $ 2,343 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 13. COMMITMENTS AND CONTINGENCIES Legal Matters We may be involved from time to time in legal proceedings arising either in the ordinary course of our business or incidental to our business. There can be no certainty, however, that we may not ultimately incur liability or that such liability will not be material or adverse. |
NET SALES (Tables)
NET SALES (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Schedule of disaggregation of net sales | Schedule of disaggregation of net sales Three months ended 2022 2021 Net Sales: Over-time revenue recognition $ 907 $ 196 Point-in-time revenue recognition 10,180 9,792 Total net sales $ 11,087 $ 9,988 |
Schedule of contract assets and liability | Schedule of contract assets and liability As of and for the 2022 2021 Contract assets beginning balance $ 710 $ 212 Expenses incurred during the year 333 96 Amounts reclassified to cost of sales (448 ) (111 ) Amounts allocated to discounts for standalone selling price (8 ) (12 ) Contract assets ending balance $ 587 $ 185 As of and for the 2022 2021 Contract liabilities beginning balance $ 1,013 $ 150 Payments received from customers 389 143 Amounts reclassified to revenue (551 ) — Contract liabilities ending balance $ 851 $ 293 |
COMPOSITION OF CERTAIN FINANC_2
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of investments | Schedule of investments September 30, June 30, Marketable equity securities - short-term $ 813 $ 755 Marketable equity securities - long-term 1,889 1,779 Total marketable equity securities $ 2,702 $ 2,534 |
Schedule of inventory | Schedule of inventory September 30, June 30, Raw materials/purchased components $ 7,641 $ 6,323 Work in process 4,104 3,463 Sub-assemblies/finished components 2,183 2,118 Finished goods 1,736 774 Total inventory $ 15,664 $ 12,678 |
Schedule of intangibles | Schedule of intangibles September 30, June 30, Patent-related costs $ 208 $ 208 Less accumulated amortization (100 ) (90 ) $ 108 $ 118 |
WARRANTY (Tables)
WARRANTY (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Guarantees and Product Warranties [Abstract] | |
Schedule of accrual warranty costs | Schedule of accrual warranty costs As of and for the 2022 2021 Beginning balance $ 340 $ 221 Accruals during the period 54 32 Changes in estimates of prior period warranty accruals 14 (8 ) Warranty amortization/utilization (42 ) (13 ) Ending balance $ 366 $ 232 |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of weighted average shares outstanding calculation of basic and diluted per share | Schedule of weighted average shares outstanding calculation of basic and diluted per share Three Months Ended 2021 2021 Basic: Net income $ 1,076 $ 1,064 Weighted-average shares outstanding 3,616 3,651 Basic earnings per share $ 0.30 $ 0.29 Diluted: Net income $ 1,076 $ 1,064 Weighted-average shares outstanding 3,616 3,651 Effect of dilutive securities 79 126 Weighted-average shares used in calculation of diluted earnings per share 3,695 3,777 Diluted earnings per share $ 0.29 $ 0.28 |
MAJOR CUSTOMERS & SUPPLIERS (Ta
MAJOR CUSTOMERS & SUPPLIERS (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Risks and Uncertainties [Abstract] | |
Schedule of sales by major customers | Schedule of sales by major customers Three Months Ended September 30, 2022 2021 Amount Percent of Amount Percent of Total revenue $ 11,087 100 % $ 9,988 100 % Customer concentration: Customer 1 $ 7,481 68 % $ 6,991 70 % Customer 2 2,156 19 % 879 9 % Total $ 9,637 87 % $ 7,870 79 % |
Schedule of accounts receivable of major customers | Schedule of accounts receivable of major customers September 30, 2022 June 30, 2022 Total gross accounts receivable $ 11,047 100 % $ 15,384 100 % Customer concentration: Customer 1 $ 9,055 82 % $ 11,551 75 % Customer 2 1,890 17 % 2,152 14 % Total $ 10,945 99 % $ 13,703 89 % |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Leases | |
Schedule of Maturities of Lease Liabilities | Schedule of Maturities of Lease Liabilities Operating Fiscal Year: 2023 $ 381 2024 519 2025 535 2026 551 2027 567 Thereafter 143 Total lease payments 2,696 Less imputed interest (353 ) Total $ 2,343 |
NET SALES (Net sales) (Details)
NET SALES (Net sales) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Net Sales: | ||
Over-time revenue recognition | $ 907 | $ 196 |
Point-in-time revenue recognition | 10,180 | 9,792 |
Total net sales | $ 11,087 | $ 9,988 |
NET SALES (Contract assets and
NET SALES (Contract assets and liability) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Equity [Abstract] | ||
Contract assets at beginning balance | $ 710 | $ 212 |
Expenses incurred during the year | 333 | 96 |
Amounts reclassified to cost of sales | (448) | (111) |
Amounts allocated to discounts for standalone selling price | (8) | (12) |
Contract assets at ending balance | 587 | 185 |
Contract liabilities at beginning balance | 1,013 | 150 |
Payments received from customers | 389 | 143 |
Amounts reclassified to revenue | (551) | |
Contract liabilities at ending balance | $ 851 | $ 293 |
NET SALES (Details Narrative)
NET SALES (Details Narrative) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Equity [Abstract] | ||
Deferred revenue | $ 551,000 | $ 0 |
Deferred Revenue | $ 851,000 |
COMPOSITION OF CERTAIN FINANC_3
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Schedule of investments) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Marketable equity securities - short-term | $ 813 | $ 755 |
Marketable equity securities - long-term | 1,889 | 1,779 |
Total marketable equity securities | $ 2,702 | $ 2,534 |
COMPOSITION OF CERTAIN FINANC_4
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Inventory) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials/purchased components | $ 7,641 | $ 6,323 |
Work in process | 4,104 | 3,463 |
Sub-assemblies/finished components | 2,183 | 2,118 |
Finished goods | 1,736 | 774 |
Total inventory | $ 15,664 | $ 12,678 |
COMPOSITION OF CERTAIN FINANC_5
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Intangible Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Less accumulated amortization | $ (100) | $ (90) |
Intangible assets,net | 108 | 118 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Total intangibles | $ 208 | $ 208 |
COMPOSITION OF CERTAIN FINANC_6
COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS (Details Narrative) - USD ($) | Sep. 30, 2022 | Jun. 30, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Aggregate cost | $ 2,714,000 | $ 2,796,000 |
Net unrealized gain (loss) on investments | 12,000 | 262,000 |
Gross unrealized losses | 325,000 | 369,000 |
Gross unrealized gains | 313,000 | 107,000 |
Investment in common stock of company affiliated with company board members | 813,000 | $ 755,000 |
Future amortization expense | $ 27,000 | |
Amortization years | 3 years |
WARRANTY (Schedule of accrual w
WARRANTY (Schedule of accrual warranty costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Guarantees and Product Warranties [Abstract] | ||
Beginning balance | $ 340 | $ 221 |
Accruals during the period | 54 | 32 |
Changes in estimates of prior period warranty accruals | 14 | (8) |
Warranty amortization and utilization | (42) | (13) |
Ending balance | $ 366 | $ 232 |
WARRANTY (Details Narrative)
WARRANTY (Details Narrative) - USD ($) | Sep. 30, 2022 | Sep. 30, 2021 |
Guarantees and Product Warranties [Abstract] | ||
Warranty reserve | $ 366,000 | $ 340,000 |
NET INCOME PER SHARE (Details)
NET INCOME PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Basic: | ||
Net income | $ 1,076 | $ 1,064 |
Weighted-average shares outstanding | 3,616 | 3,651 |
Basic earnings per share | $ 0.30 | $ 0.29 |
Diluted: | ||
Weighted-average shares outstanding | 3,616 | 3,651 |
Effect of dilutive securities | 79 | 126 |
Weighted-average shares used in calculation of diluted earnings per share | 3,695 | 3,777 |
Diluted earnings per share | $ 0.29 | $ 0.28 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||
Unrecognized tax benefits | $ 5,000 | $ 51,000 |
Expected annual effective tax rate | 17% | 22% |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | ||||||||
Jul. 02, 2020 | Dec. 31, 2021 | Feb. 28, 2021 | Dec. 31, 2020 | Feb. 28, 2020 | Dec. 31, 2017 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2014 | Sep. 30, 2016 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Number of shares outstanding | 1,500 | |||||||||
Weighted-average exercise prices | $ 2.14 | |||||||||
Weighted-average remaining contractual life | 4 months 6 days | |||||||||
Intrinsic value | $ 23,000 | |||||||||
Stock Option Plans were exercised | 5,000 | 25,000 | ||||||||
Exercise prices | $ 1.73 | $ 1.80 | ||||||||
Non Qualified Stock Options [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Number of awards granted during period | 372,000 | |||||||||
Performance Shares [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Number of awards granted during period | 37,500 | 200,000 | ||||||||
Unrecognized compensation cost | $ 292,000 | |||||||||
Period for award description | completion of service periods that range from 7 months to 9.5 years at inception and the achievement of our common stock trading at certain pre-determined prices. | |||||||||
Weighted average fair value | $ 4.46 | |||||||||
Aggregate share-based compensation expense | $ 30,000 | $ 21,000 | ||||||||
Weighted-average period | 2 years 9 months 3 days | |||||||||
Number of shares issued | 23,641 | |||||||||
Payment, Tax Withholding | $ 223,000 | |||||||||
Previously Forfeited Awards [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Number of awards granted during period | 17,500 | 48,000 | ||||||||
Weighted average fair value | $ 20.34 | $ 16.90 | ||||||||
Equity Incentive Plan [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Number of shares available to be awarded | 1,500,000 | |||||||||
Number of awards granted during period | 200,000 | |||||||||
Equity Incentive Plan [Member] | Directors And Certain Employees [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Number of awards granted during period | 310,000 | |||||||||
Unrecognized compensation cost | $ 2,900,000 | |||||||||
Period for award description | completion of service periods that range from 18 months to 10.5 years at inception and the achievement of our common stock trading at certain pre-determined prices. | |||||||||
Weighted average fair value | $ 16.72 | |||||||||
Aggregate share-based compensation expense | $ 171,000 | $ 274,000 | ||||||||
Equity Incentive Plan [Member] | Directors And Certain Employees Two [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Number of awards granted during period | 62,000 | |||||||||
Period for award description | completion of service periods that range from 4 months to 1.3 years at inception and the achievement of our common stock trading at certain pre-determined prices. | |||||||||
Weighted average fair value | $ 3.16 | |||||||||
Former Stock Option Plans [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Options granted | 0 | 0 | ||||||||
Unrecognized compensation cost | $ 0 | |||||||||
Employee Stock Purchase Plan [Member] | ||||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||||||||
Aggregate share-based compensation expense | $ 6,000 | $ 5,000 | ||||||||
Description of plan | offering and purchase periods of six months, and bases the pricing to purchase shares of our common stock on a formula so as to result in a per-share purchase price that approximates a 15% discount from the market price of a share of our common stock at the end of the purchase period. | |||||||||
Number of shares reserved for future issuance | 704,715 | |||||||||
Number of shares purchased and allocated to employee (in shares) | 2,503 | 1,130 | ||||||||
Exercise price (in dollars per share) | $ 13.52 | $ 26.17 | ||||||||
Number of shares options purchased (in shares) | 29,542 |
MAJOR CUSTOMERS & SUPPLIERS (Sa
MAJOR CUSTOMERS & SUPPLIERS (Sales) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Concentration Risk [Line Items] | ||
Total revenue | $ 11,087 | $ 9,988 |
Sales [Member] | ||
Concentration Risk [Line Items] | ||
Total revenue | $ 11,087 | $ 9,988 |
Percentage of concentrations risk | 100% | 100% |
Sales [Member] | Customer Concentration Risk 1 [Member] | ||
Concentration Risk [Line Items] | ||
Total revenue | $ 7,481 | $ 6,991 |
Percentage of concentrations risk | 68% | 70% |
Sales [Member] | Customer Concentration Risk 2 [Member] | ||
Concentration Risk [Line Items] | ||
Total revenue | $ 2,156 | $ 879 |
Percentage of concentrations risk | 19% | 9% |
Sales [Member] | Customer Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Total revenue | $ 9,637 | $ 7,870 |
Percentage of concentrations risk | 87% | 79% |
MAJOR CUSTOMERS AND SUPPLIERS (
MAJOR CUSTOMERS AND SUPPLIERS (AccountsReceivablePayable) (Details) - Accounts Receivable [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Jun. 30, 2022 | |
Concentration Risk [Line Items] | ||
Total gross accounts receivable | $ 11,047 | $ 15,384 |
Percentage of concentrations risk | 100% | 100% |
Customer Concentration Risk 1 [Member] | ||
Concentration Risk [Line Items] | ||
Total gross accounts receivable | $ 9,055 | $ 11,551 |
Percentage of concentrations risk | 82% | 75% |
Customer Concentration Risk 2 [Member] | ||
Concentration Risk [Line Items] | ||
Total gross accounts receivable | $ 1,890 | $ 2,152 |
Percentage of concentrations risk | 17% | 14% |
Customer Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Total gross accounts receivable | $ 10,945 | $ 13,703 |
Percentage of concentrations risk | 99% | 89% |
MAJOR CUSTOMERS & SUPPLIERS (De
MAJOR CUSTOMERS & SUPPLIERS (Details Narrative) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | |
Concentration Risk [Line Items] | |||
Major customers suppliers description | Amounts owed to the fiscal 2022 significant suppliers at September 30, 2022 totaled $970,000, $266,000 and $368,000, respectively, and at June 30, 2022 totaled $721,000, $430,000 and $372,000, respectively. | ||
Purchase [Member] | Supplier Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentrations risk | 10% | 10% | |
Purchase [Member] | Supplier Concentration Risk One [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentrations risk | 10% | 10% |
NOTES PAYABLE AND FINANCING T_2
NOTES PAYABLE AND FINANCING TRANSACTIONS (Details Narrative) - USD ($) | Nov. 06, 2020 | Sep. 30, 2022 | Mar. 31, 2021 |
Term Loan One [Member] | Minnesota Bank And Trust [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 7,525,000 | ||
Periodic payment of principal and interest | $ 97,000 | ||
Debt instrument, maturity date | Nov. 01, 2027 | ||
Debt outstanding | $ 3,770,331 | $ 5,556,000 | |
Amount borrowed for repurchase of common stock | $ 3,000,000 | ||
Interest rate | 3.84% | ||
Term Loan Two [Member] | Minnesota Bank And Trust [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 1,000,000 | ||
Periodic payment of principal and interest | $ 15,000 | ||
Debt instrument, maturity date | Nov. 01, 2027 | ||
Debt outstanding | 827,000 | ||
Amount borrowed for property improvements | $ 1,000,000 | ||
Interest rate | 3.84% | ||
Revolving Loan [Member] | Minnesota Bank And Trust [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 2,000,000 | ||
Debt instrument, maturity date | Nov. 05, 2023 | ||
Interest rate | 2.75% | ||
Amount borrowed on revolving loan | 2,000,000 | ||
Minnesota Bank And Trust [Member] | |||
Debt Instrument [Line Items] | |||
Percentage of late payment fee | 5% | ||
Increased percentage of default late payment | 3% | ||
Property Loan [Member] | Minnesota Bank And Trust [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 5,200,000 | ||
Unamortized loan origination fees | $ 26,037 | ||
Interest rate | 3.55% | ||
Periodic payment of principal and interest | $ 30,000 | ||
Debt instrument, maturity date | Nov. 01, 2030 | ||
Balloon payment | $ 3,100,000 | ||
Description of prepayment | Any prepayment of the Property Loan (other than monthly scheduled interest and principal payments), is subject to a prepayment fee equal to 4% of the principal amount prepaid for any prepayment made during the first or second year, 3% of the principal amount prepaid for any prepayment made during the third or fourth year, 2% of the principal amount prepaid for any prepayment made during the fifth or sixth year, and 1% of the principal amount prepaid for any prepayment made during the seventh or eighth year. | ||
Debt outstanding | $ 4,889,000 |
COMMON STOCK (Details Narrative
COMMON STOCK (Details Narrative) - Share Repurchase Program [Member] - 10b5-1 Plan [Member] - USD ($) | 3 Months Ended | 31 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | |
Equity, Class of Treasury Stock [Line Items] | |||
Number of authorized shares to repurchase, shares | 1,000,000 | ||
Shares repurchased during the year, number of shares | 20,853 | 3,616 | |
Share repurchases, value | $ 354,000 | $ 95,000 | |
Cumulative Basis [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Shares repurchased during the year, number of shares | 1,131,599 | ||
Share repurchases, value | $ 16,000,000 |
LEASES (Schedule of Future Mini
LEASES (Schedule of Future Minimum Base Rental Payment) (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Fiscal Year: | |
2023 | $ 381 |
2024 | 519 |
2025 | 535 |
2026 | 551 |
2027 | 567 |
Thereafter | 143 |
Total lease payments | 2,696 |
Less imputed interest | (353) |
Total | $ 2,343 |
LEASES (Details Narrative)
LEASES (Details Narrative) | 3 Months Ended |
Sep. 30, 2022 USD ($) | |
Leases | |
Operating lease liability current portion | $ 388,000 |
Interest rate | 5.53% |
Cash paid lease liability | $ 123,000 |
Cash paid for common area maintenance charges | $ 12,000 |