Cover
Cover - shares | 3 Months Ended | |
Sep. 30, 2021 | Nov. 12, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --06-30 | |
Entity File Number | 001-10647 | |
Entity Registrant Name | PRECISION OPTICS CORPORATION, INC. | |
Entity Central Index Key | 0000867840 | |
Entity Tax Identification Number | 04-2795294 | |
Entity Incorporation, State or Country Code | MA | |
Entity Address, Address Line One | 22 East Broadway | |
Entity Address, City or Town | Gardner | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01440-3338 | |
City Area Code | (978) | |
Local Phone Number | 630-1800 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | PEYE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 16,719,976 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 1,669,569 | $ 861,650 |
Accounts receivable (net of allowance for doubtful accounts of $252,133 at September 30, 2021 and $251,383 at June 30, 2021) | 1,711,192 | 1,878,755 |
Inventories | 2,120,890 | 1,885,395 |
Prepaid expenses | 142,326 | 150,635 |
Total current assets | 5,643,977 | 4,776,435 |
Fixed Assets: | ||
Machinery and equipment | 3,108,023 | 3,084,511 |
Leasehold improvements | 793,536 | 792,723 |
Furniture and fixtures | 178,640 | 178,640 |
Less—Accumulated depreciation and amortization | 3,503,902 | 3,461,622 |
Net fixed assets | 576,297 | 594,252 |
Operating lease right-to-use asset | 46,244 | 61,247 |
Patents, net | 147,743 | 141,702 |
Goodwill | 687,664 | 687,664 |
TOTAL ASSETS | 7,101,925 | 6,261,300 |
Current Liabilities: | ||
Current portion of capital lease obligation | 38,923 | 38,347 |
Current portion of acquisition earn out liability | 166,667 | 166,667 |
Accounts payable | 1,286,240 | 1,205,149 |
Customer advances | 336,572 | 450,084 |
Accrued compensation and other | 883,770 | 589,616 |
Operating lease liability | 46,244 | 61,247 |
Total current liabilities | 2,758,416 | 2,511,110 |
Capital lease obligation, net of current portion | 142,446 | 152,397 |
Acquisition earn out liability, net of current portion | 166,666 | 166,666 |
Operating lease liability, net of current portion | 0 | 0 |
Stockholders’ Equity: | ||
Common stock, $0.01 par value: 50,000,000 shares authorized; issued and outstanding – 13,282,476 shares at September 30, 2021 and at June 30, 2021 | 132,825 | 132,825 |
Additional paid-in capital | 50,614,351 | 50,464,280 |
Common stock subscribed | 1,030,000 | |
Accumulated deficit | (47,742,779) | (47,165,978) |
Total stockholders’ equity | 4,034,397 | 3,431,127 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 7,101,925 | $ 6,261,300 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 252,133 | $ 251,383 |
Common Stock par value | $ 0.01 | $ 0.01 |
Common Stock shares authorized | 50,000,000 | 50,000,000 |
Common Stock shares issued | 13,282,476 | 13,282,476 |
Common Stock shares outstanding | 13,282,476 | 13,282,476 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||
Revenues | $ 2,336,344 | $ 2,757,901 |
Cost of Goods Sold | 1,697,312 | 1,782,723 |
Gross Profit | 639,032 | 975,178 |
Research and Development Expenses, net | 105,186 | 151,576 |
Selling, General and Administrative Expenses | 933,624 | 822,002 |
Business acquisition expenses | 172,174 | 0 |
Total Operating Expenses | 1,210,984 | 973,578 |
Operating Income (Loss) | (571,952) | 1,600 |
Interest Expense | (4,849) | (807) |
Net Income (Loss) | $ (576,801) | $ 793 |
Loss Per Share: | ||
Basic and Fully Diluted | $ (0.04) | $ 0 |
Weighted Average Common Shares Outstanding: | ||
Basic | 13,282,476 | 13,191,789 |
Fully Diluted | 13,282,476 | 13,684,233 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY (UNAUDITED) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Common Stock Subscribed [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Jun. 30, 2020 | $ 131,918 | $ 49,702,986 | $ (47,063,143) | $ 2,771,761 | |
Beginning balance, shares at Jun. 30, 2020 | 13,191,789 | ||||
Stock-based compensation | 71,146 | 71,146 | |||
Net income | 793 | 793 | |||
Ending balance, value at Sep. 30, 2020 | $ 131,918 | 49,774,132 | (47,062,350) | 2,843,700 | |
Ending balance, shares at Sep. 30, 2020 | 13,191,789 | ||||
Beginning balance, value at Jun. 30, 2021 | $ 132,825 | 50,464,280 | (47,165,978) | 3,431,127 | |
Beginning balance, shares at Jun. 30, 2021 | 13,282,476 | ||||
Stock-based compensation | 160,071 | 160,071 | |||
Proceeds from private placement of common stock subscribed, net of estimated issuance costs of $10,000 | (10,000) | 1,030,000 | 1,020,000 | ||
Net income | (576,801) | (576,801) | |||
Ending balance, value at Sep. 30, 2021 | $ 132,825 | $ 50,614,351 | $ 1,030,000 | $ (47,742,779) | $ 4,034,397 |
Ending balance, shares at Sep. 30, 2021 | 13,282,476 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY (UNAUDITED) (Parenthetical) | 3 Months Ended |
Sep. 30, 2021USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Payment of stock issuance costs | $ 10,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Flows from Operating Activities: | ||
Net Income (Loss) | $ (576,801) | $ 793 |
Adjustments to reconcile net loss to net cash used in by operating activities - | ||
Depreciation and amortization | 42,280 | 35,086 |
Stock-based compensation expense | 160,071 | 71,146 |
Changes in operating assets and liabilities - | ||
Accounts receivable, net | 167,563 | (103,564) |
Inventories, net | (235,495) | 58,854 |
Prepaid expenses | 8,309 | 21,692 |
Accounts payable | 81,091 | (43,202) |
Customer advances | (113,512) | (210,394) |
Accrued compensation and other | 284,154 | (3,047) |
Net cash used in operating activities | (182,340) | (172,636) |
Cash Flows from Investing Activities: | ||
Purchases of fixed assets | (24,325) | (30,951) |
Additional patent costs | (6,041) | (9,658) |
Net cash used in investing activities | (30,366) | (40,609) |
Cash Flows from Financing Activities: | ||
Payment of capital lease obligation | (9,375) | (20,942) |
Gross Proceeds from private placement of common stock subscribed | 1,030,000 | 0 |
Net cash provided by (used in) financing activities | 1,020,625 | (20,942) |
Net increase (decrease) in cash and cash equivalents | 807,919 | (234,187) |
Cash and cash equivalents, beginning of period | 861,650 | 1,134,697 |
Cash and cash equivalents, end of period | 1,669,569 | 900,510 |
Supplemental disclosure of non-cash financing activities: | ||
Offering costs included in accrued compensation and other | $ 10,000 | $ 22,250 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation and Operations The accompanying consolidated financial statements include the accounts of Precision Optics Corporation, Inc. and its wholly-owned subsidiaries (the “Company”). All significant intercompany accounts and transactions have been eliminated in consolidation. These consolidated financial statements have been prepared by the Company, without audit, and reflect normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of the results of the first quarter of the Company’s fiscal year 2022. These consolidated financial statements do not include all disclosures associated with annual consolidated financial statements and, accordingly, should be read in conjunction with footnotes contained in the Company’s consolidated financial statements for the year ended June 30, 2021, together with the Report of Independent Registered Public Accounting Firm filed under cover of the Company’s 2021 Annual Report on Form 10-K, filed with the Securities and Exchange Commission on September 28, 2021. Use of Estimates The preparation of these consolidated financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. Income (Loss) Per Share Basic income (loss) per share is computed by dividing net income or net loss by the weighted average number of shares of common stock outstanding during the period. Diluted income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period, plus the number of potentially dilutive securities outstanding during the period such as stock options. For the three months ended September 30, 2021, the effect of such securities was antidilutive and not included in the fully diluted calculation because of the net loss generated in that period. The following is the calculation of income (loss) per share for the three months ended September 30, 2021 and 2020: Loss Per Share Three Months 2021 2020 Net Income (Loss) – Basic and Fully Diluted $ (576,801 ) $ 793 Weighted Average Shares Outstanding Basic 13,282,476 13,191,789 Fully Diluted 13,282,476 13,684,233 Loss Per Share - Basic and Fully Diluted $ (0.04 ) $ 0.00 The number of shares issuable upon the exercise of outstanding stock options that were excluded from the computation as their effect was antidilutive was approximately 2,563,200 893,200 Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. 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. In assessing the likelihood of utilization of existing deferred tax assets, management has considered historical results of operations and the current operating environment. Based on this evaluation, a full valuation reserve has been provided for the deferred tax assets. Goodwill and Patents Long-lived assets such as goodwill and patents are capitalized when acquired and reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable. Impairment of the carrying value of long-lived assets such as goodwill and patents would be indicated if the best estimate of future undiscounted cash flows expected to be generated by the asset grouping is less than its carrying value. If an impairment is indicated, any loss is measured as the difference between estimated fair value and carrying value and is recognized in operating income or loss. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. No |
INVENTORIES
INVENTORIES | 3 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 2. INVENTORIES Inventories are stated at the lower of cost (first-in, first-out) or market and consisted of the following: Schedule of inventory September 30, June 30, Raw Materials $ 639,274 $ 626,255 Work-In-Progress 566,263 453,117 Finished Goods 915,353 806,023 Total Inventories $ 2,120,890 $ 1,885,395 |
LEASE OBLIGATION
LEASE OBLIGATION | 3 Months Ended |
Sep. 30, 2021 | |
Lease Obligation | |
LEASE OBLIGATION | 3. LEASE OBLIGATION In March 2021, the Company entered into a five-year capital lease in the amount of $ 161,977 47,750 220,164 On July 1, 2019 the Company entered into a three-year operating lease for its facility in El Paso, Texas with total remaining minimum lease payments of $ 47,116 13,997 15,445 46,244 46,244 0 At September 30, 2021, future minimum lease payments under the capital lease and operating lease obligations are as follows: Future minimum lease payments Fiscal Year Ending June 30: Capital Leases Operating Lease 2022 $ 36,464 $ 47,116 2023 48,619 – 2024 48,619 – 2025 43,917 – 2026 28,006 – Total Minimum Payments 205,625 $ 47,116 Less: amount representing interest 24,256 Present value of minimum lease payments 181,369 Less: current portion 38,923 $ 142,446 The Company’s operating leases for its Gardner, Massachusetts office, production and storage spaces plus an equipment lease have expired and are continuing on a month-to-month tenant at will basis. Rent expense on these operating leases was $ 50,826 41,616 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | 4. STOCK-BASED COMPENSATION The following table summarizes stock-based compensation expense for the three months ended September 30, 2021 and 2020: Schedule of stock-based compensation expense Three Months 2021 2020 Cost of Goods Sold $ 28,415 $ 11,233 Research and Development Expenses 43,489 16,925 Selling, General and Administrative Expenses 88,167 42,988 $ 160,071 $ 71,146 No compensation has been capitalized because such amounts would have been immaterial. The following tables summarize stock option activity for the three months ended September 30, 2021: Stock option activity Options Outstanding Number of Weighted Average Weighted Average Outstanding at June 30, 2021 2,578,200 $ 1.13 6.73 Cancelled (15,000 ) $ 1.80 Outstanding at September 30, 2021 2,563,200 $ 1.13 6.46 Information related to the stock options outstanding as of September 30, 2021 is as follows: Stock options outstanding by exercise price range Range of Number of Weighted- Weighted- Exercisable Exercisable $ 0.48 60,000 4.50 $ 0.48 60,000 $ 0.48 $ 0.50 80,000 4.72 $ 0.50 80,000 $ 0.50 $ 0.55 40,000 2.67 $ 0.55 40,000 $ 0.55 $ 0.70 100,000 6.84 $ 0.70 100,000 $ 0.70 $ 0.73 758,000 5.09 $ 0.73 758,000 $ 0.73 $ 0.85 6,000 1.26 $ 0.85 6,000 $ 0.85 $ 0.90 36,000 2.69 $ 0.90 36,000 $ 0.90 $ 1.20 200,200 0.42 $ 1.20 200,200 $ 1.20 $ 1.25 45,000 8.47 $ 1.25 15,000 $ 1.25 $ 1.30 453,000 7.70 $ 1.30 266,522 $ 1.30 $ 1.40 70,000 9.13 $ 1.40 70,000 $ 1.40 $ 1.42 100,000 7.95 $ 1.42 66,667 $ 1.42 $ 1.45 5,000 9.44 $ 1.45 – $ – $ 1.50 70,000 8.19 $ 1.50 70,000 $ 1.50 $ 1.68 540,000 9.68 $ 1.68 270,000 $ 1.68 0.48–1.68 2,563,200 6.46 $ 1.13 2,038,389 $ 1.13 The aggregate intrinsic value of the Company’s “in-the-money” outstanding and exercisable options as of September 30, 2021 was $ 1,564,100 1,355,063 |
SALE OF STOCK IN OCTOBER 2021
SALE OF STOCK IN OCTOBER 2021 | 3 Months Ended |
Sep. 30, 2021 | |
Sale Of Stock In October 2021 | |
SALE OF STOCK IN OCTOBER 2021 | 5. SALE OF STOCK IN OCTOBER 2021 On October 1, 2021, the Company entered into agreements with accredited investors for the sale and purchase of 937,500 1.60 1,500,000 1,030,000 Subsequent Event-Business Acquisition |
REVENUE RECOGNITION
REVENUE RECOGNITION | 3 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | 6. REVENUE RECOGNITION Revenues are recognized as the performance obligations to deliver products or services are satisfied and are recorded based on the amount of consideration the Company expects to receive in exchange for satisfying the performance obligations. Most of the Company’s products and services are marketed to medical device companies almost exclusively in the United States. Products and services are primarily transferred to customers at a point in time based upon when services are performed or product is shipped. Revenues represent the amount of consideration the Company expects to receive from customers in exchange for transferring products and services. Other selling costs to obtain and fulfill contracts are expensed as incurred due to the short-term nature of a majority of its revenues. The Company extends terms of payment to its customers based on commercially reasonable terms for the markets of its customers, while also considering their credit quality. Shipping and handling costs charged to customers are included in revenues. The Company disaggregates revenues by product and service types as it believes it best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by economic factors. Revenues are comprised of the following for the three and nine months ended September 30, 2021 and 2020: Disaggregation of revenues Three Months 2021 2020 Engineering Design Services $ 373,316 $ 589,232 Optical Components 1,538,932 1,476,085 Medical Device Products & Assemblies 424,096 692,584 $ 2,336,344 $ 2,757,901 Contract Assets and Liabilities The nature of the Company’s products and services does not generally give rise to contract assets as it typically does not incur costs to fulfill a contract before a product or service is provided to a customer. The Company’s costs to obtain contracts are typically in the form of sales commissions paid to employees. The Company has elected to expense sales commissions associated with obtaining a contract as incurred as the amortization period is generally less than one year. These costs have been recorded in selling, general and administrative expenses. As of September 30, 2021, there were no contract assets recorded in the Company’s Consolidated Balance Sheets. The Company’s contract liabilities arise as a result of unearned revenue received from customers at inception of contracts or where the timing of billing for services precedes satisfaction of our performance obligations. The Company generally satisfies performance obligations within one year from the contract inception date. Contract liabilities, which were recorded as customer advances in the Company’s Consolidated Balance Sheets, and unearned revenue are comprised of the following: Contract Liabilities Three Months Ended September 30, 2021 2020 Contract liabilities, beginning of period $ 450,084 $ 417,059 Unearned revenue received from customers 205,389 44,132 Revenue recognized (318,901 ) (254,526 ) Contract liabilities, end of period $ 336,572 $ 206,665 |
COVID-19 PANDEMIC
COVID-19 PANDEMIC | 3 Months Ended |
Sep. 30, 2021 | |
Covid-19 Pandemic | |
COVID-19 PANDEMIC | 7. COVID-19 PANDEMIC The COVID-19 world-wide pandemic that began during the quarter ended March 31, 2020 and the domestic and international impact of policy decisions being made in major countries around the world has had, and could continue to have, an adverse impact on the Company’s sources of supply, current and future orders from its customers, collection of amounts owed to the Company from its customers, its internal operating procedures, and the Company’s overall financial condition. Given the uncertainty surrounding the continuation of economic impacts both domestically and abroad, the Company cannot predict with certainty at this time what the future impact of COVID-19 and resulting business and economic policies in the US and abroad will be on its up-coming quarterly fiscal operating results. |
SUBSEQUENT EVENT _ BUSINESS ACQ
SUBSEQUENT EVENT – BUSINESS ACQUISITION | 3 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT – BUSINESS ACQUISITION | 8. SUBSEQUENT EVENT – BUSINESS ACQUISITION On October 4, 2021, the Company closed on an asset purchase agreement with an effective date of October 1, 2021 with Lighthouse Imaging, LLC and Anania & Associates Investment Company, LLC for substantially all of the assets of Lighthouse Imaging, LLC, a Maine limited liability company operating a medical optics and digital imaging business, as more fully described in Form 8-K filed with the Securities and Exchange Commission on October 10, 2021. The aggregate cash purchase price consisted of $2,855,000 in cash at closing and $1,500,000 as earn-out consideration contingent on certain performance criteria over a period of two years. The Company also issued 2,500,000 unregistered shares of its common stock to the sellers at the closing date. The wife of the Company’s VP of sales and marketing Jeffrey Di Rubio participated in the private placement by purchasing 12,500 shares of common stock for $20,000. The Company financed the acquisition in October 2021 by taking on a $2,600,000 term loan from Main Street Bank, and by closing a $1,500,000 private placement for the sale and purchase of 937,500 of its common stock, $0.01 par value, at a purchase price of $1.60 per share. Gross proceeds from the offering totaling $1,030,000 were received from investors prior to September 30, 2021 and are included in common stock subscribed in the accompanying Consolidated Statements of Stockholders Equity. The Company also secured a revolving line of credit not to exceed $250,000 for general working capital purposes. The financial statements of Lighthouse Imaging, LLC and pro forma financial information required to be filed by Items 9.01(a) and (b) of Form 8-K will be filed by amendment no later than the required 71 calendar days after the October 10, 2021 filing of the Form 8-K, or by December 20, 2021. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Operations | Principles of Consolidation and Operations The accompanying consolidated financial statements include the accounts of Precision Optics Corporation, Inc. and its wholly-owned subsidiaries (the “Company”). All significant intercompany accounts and transactions have been eliminated in consolidation. These consolidated financial statements have been prepared by the Company, without audit, and reflect normal recurring adjustments which, in the opinion of management, are necessary for a fair statement of the results of the first quarter of the Company’s fiscal year 2022. These consolidated financial statements do not include all disclosures associated with annual consolidated financial statements and, accordingly, should be read in conjunction with footnotes contained in the Company’s consolidated financial statements for the year ended June 30, 2021, together with the Report of Independent Registered Public Accounting Firm filed under cover of the Company’s 2021 Annual Report on Form 10-K, filed with the Securities and Exchange Commission on September 28, 2021. |
Use of Estimates | Use of Estimates The preparation of these consolidated financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. |
Income (Loss) Per Share | Income (Loss) Per Share Basic income (loss) per share is computed by dividing net income or net loss by the weighted average number of shares of common stock outstanding during the period. Diluted income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period, plus the number of potentially dilutive securities outstanding during the period such as stock options. For the three months ended September 30, 2021, the effect of such securities was antidilutive and not included in the fully diluted calculation because of the net loss generated in that period. The following is the calculation of income (loss) per share for the three months ended September 30, 2021 and 2020: Loss Per Share Three Months 2021 2020 Net Income (Loss) – Basic and Fully Diluted $ (576,801 ) $ 793 Weighted Average Shares Outstanding Basic 13,282,476 13,191,789 Fully Diluted 13,282,476 13,684,233 Loss Per Share - Basic and Fully Diluted $ (0.04 ) $ 0.00 The number of shares issuable upon the exercise of outstanding stock options that were excluded from the computation as their effect was antidilutive was approximately 2,563,200 893,200 |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. 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. In assessing the likelihood of utilization of existing deferred tax assets, management has considered historical results of operations and the current operating environment. Based on this evaluation, a full valuation reserve has been provided for the deferred tax assets. |
Goodwill and Patents | Goodwill and Patents Long-lived assets such as goodwill and patents are capitalized when acquired and reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable. Impairment of the carrying value of long-lived assets such as goodwill and patents would be indicated if the best estimate of future undiscounted cash flows expected to be generated by the asset grouping is less than its carrying value. If an impairment is indicated, any loss is measured as the difference between estimated fair value and carrying value and is recognized in operating income or loss. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. No |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Loss Per Share | Loss Per Share Three Months 2021 2020 Net Income (Loss) – Basic and Fully Diluted $ (576,801 ) $ 793 Weighted Average Shares Outstanding Basic 13,282,476 13,191,789 Fully Diluted 13,282,476 13,684,233 Loss Per Share - Basic and Fully Diluted $ (0.04 ) $ 0.00 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Schedule of inventory September 30, June 30, Raw Materials $ 639,274 $ 626,255 Work-In-Progress 566,263 453,117 Finished Goods 915,353 806,023 Total Inventories $ 2,120,890 $ 1,885,395 |
LEASE OBLIGATION (Tables)
LEASE OBLIGATION (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Lease Obligation | |
Future minimum lease payments | Future minimum lease payments Fiscal Year Ending June 30: Capital Leases Operating Lease 2022 $ 36,464 $ 47,116 2023 48,619 – 2024 48,619 – 2025 43,917 – 2026 28,006 – Total Minimum Payments 205,625 $ 47,116 Less: amount representing interest 24,256 Present value of minimum lease payments 181,369 Less: current portion 38,923 $ 142,446 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of stock-based compensation expense | Schedule of stock-based compensation expense Three Months 2021 2020 Cost of Goods Sold $ 28,415 $ 11,233 Research and Development Expenses 43,489 16,925 Selling, General and Administrative Expenses 88,167 42,988 $ 160,071 $ 71,146 |
Stock option activity | Stock option activity Options Outstanding Number of Weighted Average Weighted Average Outstanding at June 30, 2021 2,578,200 $ 1.13 6.73 Cancelled (15,000 ) $ 1.80 Outstanding at September 30, 2021 2,563,200 $ 1.13 6.46 |
Stock options outstanding by exercise price range | Stock options outstanding by exercise price range Range of Number of Weighted- Weighted- Exercisable Exercisable $ 0.48 60,000 4.50 $ 0.48 60,000 $ 0.48 $ 0.50 80,000 4.72 $ 0.50 80,000 $ 0.50 $ 0.55 40,000 2.67 $ 0.55 40,000 $ 0.55 $ 0.70 100,000 6.84 $ 0.70 100,000 $ 0.70 $ 0.73 758,000 5.09 $ 0.73 758,000 $ 0.73 $ 0.85 6,000 1.26 $ 0.85 6,000 $ 0.85 $ 0.90 36,000 2.69 $ 0.90 36,000 $ 0.90 $ 1.20 200,200 0.42 $ 1.20 200,200 $ 1.20 $ 1.25 45,000 8.47 $ 1.25 15,000 $ 1.25 $ 1.30 453,000 7.70 $ 1.30 266,522 $ 1.30 $ 1.40 70,000 9.13 $ 1.40 70,000 $ 1.40 $ 1.42 100,000 7.95 $ 1.42 66,667 $ 1.42 $ 1.45 5,000 9.44 $ 1.45 – $ – $ 1.50 70,000 8.19 $ 1.50 70,000 $ 1.50 $ 1.68 540,000 9.68 $ 1.68 270,000 $ 1.68 0.48–1.68 2,563,200 6.46 $ 1.13 2,038,389 $ 1.13 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 3 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenues | Disaggregation of revenues Three Months 2021 2020 Engineering Design Services $ 373,316 $ 589,232 Optical Components 1,538,932 1,476,085 Medical Device Products & Assemblies 424,096 692,584 $ 2,336,344 $ 2,757,901 |
Contract Liabilities | Contract Liabilities Three Months Ended September 30, 2021 2020 Contract liabilities, beginning of period $ 450,084 $ 417,059 Unearned revenue received from customers 205,389 44,132 Revenue recognized (318,901 ) (254,526 ) Contract liabilities, end of period $ 336,572 $ 206,665 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Loss per share) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Accounting Policies [Abstract] | ||
Net Income (Loss) – Basic and Fully Diluted | $ (576,801) | $ 793 |
Weighted Average Shares Outstanding | ||
Basic | 13,282,476 | 13,191,789 |
Fully Diluted | 13,282,476 | 13,684,233 |
Loss Per Share - Basic and Fully Diluted | $ (0.04) | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Accounting Policies [Abstract] | ||
Outstanding stock options and warrants that were excluded from the computation as their effect was antidilutive | 2,563,200 | 893,200 |
Goodwill impairment | $ 0 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 |
Inventory Disclosure [Abstract] | ||
Raw Materials | $ 639,274 | $ 626,255 |
Work-In-Progress | 566,263 | 453,117 |
Finished Goods | 915,353 | 806,023 |
Total Inventories | $ 2,120,890 | $ 1,885,395 |
LEASE OBLIGATION (Details)
LEASE OBLIGATION (Details) - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 |
Total minimum payments | $ 47,116 | |
Present value of minimum lease payments | 220,164 | |
Capital lease obligation, current | 38,923 | $ 38,347 |
Capital lease obligation, noncurrent | 142,446 | $ 152,397 |
Operating Lease [Member] | ||
2022 | 47,116 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
2026 | 0 | |
Total minimum payments | 47,116 | |
Capital Lease Obligations [Member] | ||
2022 | 36,464 | |
2023 | 48,619 | |
2024 | 48,619 | |
2025 | 43,917 | |
2026 | 28,006 | |
Total minimum payments | 205,625 | |
Less: amount representing interest | 24,256 | |
Present value of minimum lease payments | 181,369 | |
Capital lease obligation, current | 38,923 | |
Capital lease obligation, noncurrent | $ 142,446 |
LEASE OBLIGATION (Details Narra
LEASE OBLIGATION (Details Narrative) - USD ($) | 3 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Mar. 31, 2021 | Jan. 31, 2020 | |
Net book value of fixed assets under capital lease obligations | $ 220,164 | ||||
Lessee, Operating Lease, Liability, to be Paid | 47,116 | ||||
Operating Lease, Right-of-Use Asset | 46,244 | $ 61,247 | |||
Operating Lease, Liability, Current | 46,244 | ||||
Operating Lease, Liability, Noncurrent | 0 | $ 0 | |||
El Paso Texas [Member] | |||||
Operating lease expense | 13,997 | $ 15,445 | |||
Gardner Ma [Member] | |||||
Operating lease expense | $ 50,826 | $ 41,616 | |||
Manufacturing Equipment [Member] | |||||
Capital lease obligation | $ 161,977 | ||||
Manufacturing Equipment 2 [Member] | |||||
Capital lease obligation | $ 47,750 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details - Stock based compensation) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock based compensation expense | $ 160,071 | $ 71,146 |
Cost of Sales [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock based compensation expense | 28,415 | 11,233 |
Research and Development Expense [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock based compensation expense | 43,489 | 16,925 |
Selling, General and Administrative Expenses [Member] | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock based compensation expense | $ 88,167 | $ 42,988 |
STOCK-BASED COMPENSATION (Det_2
STOCK-BASED COMPENSATION (Details - Option activity) - Equity Option [Member] | 3 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding, beginning | shares | 2,578,200 |
Weighted average exercise price, beginning price | $ / shares | $ 1.13 |
Weighted Average Contractual Life | 6 years 8 months 23 days |
Options cancelled | shares | (15,000) |
Weighted average exercise price, cancelled | $ / shares | $ 1.80 |
Options outstanding, ending | shares | 2,563,200 |
Weighted average exercise price, ending price | $ / shares | $ 1.13 |
Weighted Average Contractual Life | 6 years 5 months 15 days |
STOCK-BASED COMPENSATION (Det_3
STOCK-BASED COMPENSATION (Details - Options by exercise price) - $ / shares | 3 Months Ended | |
Sep. 30, 2021 | Jun. 30, 2021 | |
Equity Option [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of exercise prices | 0.48–1.68 | |
Number of shares outstanding | 2,563,200 | 2,578,200 |
Weighted average contractual life | 6 years 5 months 15 days | |
Weighted average exercise price | $ 1.13 | $ 1.13 |
Exercisable number of shares | 2,038,389 | |
Exercisable weighted average exercise price | $ 1.13 | |
Option 1 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of exercise prices | 0.48 | |
Number of shares outstanding | 60,000 | |
Weighted average contractual life | 4 years 6 months | |
Weighted average exercise price | $ 0.48 | |
Exercisable number of shares | 60,000 | |
Exercisable weighted average exercise price | $ 0.48 | |
Option 2 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of exercise prices | 0.50 | |
Number of shares outstanding | 80,000 | |
Weighted average contractual life | 4 years 8 months 19 days | |
Weighted average exercise price | $ 0.50 | |
Exercisable number of shares | 80,000 | |
Exercisable weighted average exercise price | $ 0.50 | |
Option 3 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of exercise prices | 0.55 | |
Number of shares outstanding | 40,000 | |
Weighted average contractual life | 2 years 8 months 1 day | |
Weighted average exercise price | $ 0.55 | |
Exercisable number of shares | 40,000 | |
Exercisable weighted average exercise price | $ 0.55 | |
Option 4 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of exercise prices | 0.70 | |
Number of shares outstanding | 100,000 | |
Weighted average contractual life | 6 years 10 months 2 days | |
Weighted average exercise price | $ 0.70 | |
Exercisable number of shares | 100,000 | |
Exercisable weighted average exercise price | $ 0.70 | |
Option 5 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of exercise prices | 0.73 | |
Number of shares outstanding | 758,000 | |
Weighted average contractual life | 5 years 1 month 2 days | |
Weighted average exercise price | $ 0.73 | |
Exercisable number of shares | 758,000 | |
Exercisable weighted average exercise price | $ 0.73 | |
Option 6 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of exercise prices | 0.85 | |
Number of shares outstanding | 6,000 | |
Weighted average contractual life | 1 year 3 months 3 days | |
Weighted average exercise price | $ 0.85 | |
Exercisable number of shares | 6,000 | |
Exercisable weighted average exercise price | $ 0.85 | |
Option 7 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of exercise prices | 0.90 | |
Number of shares outstanding | 36,000 | |
Weighted average contractual life | 2 years 8 months 8 days | |
Weighted average exercise price | $ 0.90 | |
Exercisable number of shares | 36,000 | |
Exercisable weighted average exercise price | $ 0.90 | |
Option 8 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of exercise prices | 1.20 | |
Number of shares outstanding | 200,200 | |
Weighted average contractual life | 5 months 1 day | |
Weighted average exercise price | $ 1.20 | |
Exercisable number of shares | 200,200 | |
Exercisable weighted average exercise price | $ 1.20 | |
Option 9 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of exercise prices | 1.25 | |
Number of shares outstanding | 45,000 | |
Weighted average contractual life | 8 years 5 months 19 days | |
Weighted average exercise price | $ 1.25 | |
Exercisable number of shares | 15,000 | |
Exercisable weighted average exercise price | $ 1.25 | |
Option 10 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of exercise prices | 1.30 | |
Number of shares outstanding | 453,000 | |
Weighted average contractual life | 7 years 8 months 12 days | |
Weighted average exercise price | $ 1.30 | |
Exercisable number of shares | 266,522 | |
Exercisable weighted average exercise price | $ 1.30 | |
Option 11 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of exercise prices | 1.40 | |
Number of shares outstanding | 70,000 | |
Weighted average contractual life | 9 years 1 month 17 days | |
Weighted average exercise price | $ 1.40 | |
Exercisable number of shares | 70,000 | |
Exercisable weighted average exercise price | $ 1.40 | |
Option 12 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of exercise prices | 1.42 | |
Number of shares outstanding | 100,000 | |
Weighted average contractual life | 7 years 11 months 12 days | |
Weighted average exercise price | $ 1.42 | |
Exercisable number of shares | 66,667 | |
Exercisable weighted average exercise price | $ 1.42 | |
Option 13 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of exercise prices | 1.45 | |
Number of shares outstanding | 5,000 | |
Weighted average contractual life | 9 years 5 months 8 days | |
Weighted average exercise price | $ 1.45 | |
Exercisable number of shares | 0 | |
Exercisable weighted average exercise price | $ 0 | |
Option 14 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of exercise prices | 1.50 | |
Number of shares outstanding | 70,000 | |
Weighted average contractual life | 8 years 2 months 8 days | |
Weighted average exercise price | $ 1.50 | |
Exercisable number of shares | 70,000 | |
Exercisable weighted average exercise price | $ 1.50 | |
Option 15 [Member] | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of exercise prices | 1.68 | |
Number of shares outstanding | 540,000 | |
Weighted average contractual life | 9 years 8 months 4 days | |
Weighted average exercise price | $ 1.68 | |
Exercisable number of shares | 270,000 | |
Exercisable weighted average exercise price | $ 1.68 |
STOCK-BASED COMPENSATION (Det_4
STOCK-BASED COMPENSATION (Details Narrative) | Sep. 30, 2021USD ($) |
Share-based Payment Arrangement [Abstract] | |
Aggregate intrinsic value of "in the money" outstanding | $ 1,564,100 |
Aggregate intrinsic value of "in the money" exercisable | $ 1,355,063 |
SALE OF STOCK IN OCTOBER 2021 (
SALE OF STOCK IN OCTOBER 2021 (Details Narrative) - Accredited Investors [Member] - USD ($) | 1 Months Ended | 3 Months Ended |
Oct. 02, 2021 | Sep. 30, 2021 | |
Subsequent Event [Line Items] | ||
Gross proceeds from offering | $ 1,500,000 | |
Proceed from sales of stock | $ 1,030,000 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Number of shares sold | 937,500 | |
Share price | $ 1.60 |
REVENUE RECOGNITION (Details -
REVENUE RECOGNITION (Details - Revenues) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 2,336,344 | $ 2,757,901 |
Engineering Design Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 373,316 | 589,232 |
Optical Components [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,538,932 | 1,476,085 |
Medical Device [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 424,096 | $ 692,584 |
REVENUE RECOGNITION (Details _2
REVENUE RECOGNITION (Details - Contract liabilities) - USD ($) | 3 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Contract liabilities, beginning of period | $ 450,084 | $ 417,059 |
Unearned revenue received from customers | 205,389 | 44,132 |
Revenue recognized | (318,901) | (254,526) |
Contract liabilities, end of period | $ 336,572 | $ 206,665 |