Cover
Cover - shares | 9 Months Ended | |
Mar. 31, 2022 | May 16, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Period Focus | Q3 | |
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, $0.01 par value | |
Trading Symbol | PEYE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 16,915,089 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 831,585 | $ 861,650 |
Accounts receivable, net of allowance for doubtful accounts of $253,633 at March 31, 2022 and $251,383 at June 30, 2021 | 3,347,692 | 1,878,755 |
Inventories | 2,965,220 | 1,885,395 |
Prepaid expenses | 318,551 | 150,635 |
Total current assets | 7,463,048 | 4,776,435 |
Fixed Assets: | ||
Machinery and equipment | 3,196,585 | 3,084,511 |
Leasehold improvements | 812,283 | 792,723 |
Furniture and fixtures | 216,810 | 178,640 |
Total Fixed Assets | 4,225,678 | 4,055,874 |
Less: Accumulated depreciation and amortization | 3,599,491 | 3,461,622 |
Net fixed assets | 626,187 | 594,252 |
Operating lease right-to-use asset | 140,607 | 61,247 |
Patents, net | 212,952 | 141,702 |
Goodwill | 8,824,210 | 687,664 |
TOTAL ASSETS | 17,267,004 | 6,261,300 |
Current Liabilities: | ||
Current portion of capital lease obligation | 40,102 | 38,347 |
Current maturities of long-term debt | 367,714 | 0 |
Current portion of acquisition earn out liability | 898,855 | 166,667 |
Accounts payable | 2,538,040 | 1,205,149 |
Customer advances | 1,018,275 | 450,084 |
Accrued compensation and other | 862,496 | 589,616 |
Operating lease liability | 45,405 | 61,247 |
Total current liabilities | 5,770,887 | 2,511,110 |
Capital lease obligation, net of current portion | 122,096 | 152,397 |
Long-term debt, net of current maturities | 2,053,070 | 0 |
Acquisition earn out liability, net of current portion | 697,408 | 166,666 |
Operating lease liability, net of current portion | 95,202 | 0 |
Stockholders’ Equity: | ||
Common stock, $0.01 par value: 50,000,000 shares authorized; issued and outstanding 16,887,840 shares at March 31, 2022 and 13,282,476 at June 30, 2021 | 168,878 | 132,825 |
Additional paid-in capital | 56,723,154 | 50,464,280 |
Accumulated deficit | (48,363,691) | (47,165,978) |
Total stockholders’ equity | 8,528,341 | 3,431,127 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 17,267,004 | $ 6,261,300 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 253,633 | $ 251,383 |
Common Stock par value | $ 0.01 | $ 0.01 |
Common Stock shares authorized | 50,000,000 | 50,000,000 |
Common Stock shares issued | 16,887,840 | 13,282,476 |
Common Stock shares outstanding | 16,887,840 | 13,282,476 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||||
Revenues | $ 4,651,352 | $ 2,458,290 | $ 10,884,737 | $ 8,001,641 |
Cost of goods sold | 2,923,143 | 1,640,266 | 7,397,914 | 5,353,999 |
Gross profit | 1,728,209 | 818,024 | 3,486,823 | 2,647,642 |
Research and development expenses, net | 214,898 | 146,063 | 433,248 | 443,609 |
Selling, general and administrative expenses | 1,574,432 | 927,979 | 3,974,824 | 2,671,176 |
Business acquisition expenses | 0 | 0 | 172,174 | 0 |
Total operating expenses | 1,789,330 | 1,074,042 | 4,580,246 | 3,114,785 |
Operating loss | (61,121) | (256,018) | (1,093,423) | (467,143) |
Other income (expense) | ||||
Interest expense | (52,778) | (666) | (104,290) | (2,202) |
Gain on forgiveness of bank note | 0 | 808,962 | 0 | 808,962 |
Net income (loss) | $ (113,899) | $ 552,278 | $ (1,197,713) | $ 339,617 |
Income (loss) per share: | ||||
Basic | $ (0.01) | $ 0.04 | $ (0.08) | $ 0.03 |
Fully diluted | $ (0.01) | $ 0.04 | $ (0.08) | $ 0.02 |
Weighted average common shares outstanding: | ||||
Basic | 16,803,040 | 13,243,595 | 15,545,869 | 13,208,805 |
Fully diluted | 16,803,040 | 14,068,459 | 15,545,869 | 13,841,700 |
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 | $ 0 | $ (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 | 0 | (47,062,350) | 2,843,700 |
Ending balance, shares at Sep. 30, 2020 | 13,191,789 | ||||
Beginning balance, value at Jun. 30, 2020 | $ 131,918 | 49,702,986 | 0 | (47,063,143) | 2,771,761 |
Beginning balance, shares at Jun. 30, 2020 | 13,191,789 | ||||
Net income | 339,617 | ||||
Ending balance, value at Mar. 31, 2021 | $ 132,638 | 50,044,789 | 0 | (46,723,526) | 3,453,901 |
Ending balance, shares at Mar. 31, 2021 | 13,263,789 | ||||
Beginning balance, value at Sep. 30, 2020 | $ 131,918 | 49,774,132 | 0 | (47,062,350) | 2,843,700 |
Beginning balance, shares at Sep. 30, 2020 | 13,191,789 | ||||
Stock-based compensation | 157,079 | 157,079 | |||
Net income | (213,454) | (213,454) | |||
Ending balance, value at Dec. 31, 2020 | $ 131,918 | 49,931,211 | 0 | (47,275,804) | 2,787,325 |
Ending balance, shares at Dec. 31, 2020 | 13,191,789 | ||||
Stock-based compensation | 86,027 | 86,027 | |||
Proceeds from exercise of stock options | $ 720 | 27,551 | 28,271 | ||
Issuance of common stock for employee services, shares | 72,000 | ||||
Net income | 552,278 | 552,278 | |||
Ending balance, value at Mar. 31, 2021 | $ 132,638 | 50,044,789 | 0 | (46,723,526) | 3,453,901 |
Ending balance, shares at Mar. 31, 2021 | 13,263,789 | ||||
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 | (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 | ||||
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 | ||||
Net income | (1,197,713) | ||||
Ending balance, value at Mar. 31, 2022 | $ 168,878 | 56,723,154 | 0 | (48,363,691) | 8,528,341 |
Ending balance, shares at Mar. 31, 2022 | 16,887,840 | ||||
Beginning balance, value at Sep. 30, 2021 | $ 132,825 | 50,614,351 | 1,030,000 | (47,742,779) | 4,034,397 |
Beginning balance, shares at Sep. 30, 2021 | 13,282,476 | ||||
Stock-based compensation | 330,451 | 330,451 | |||
Proceeds from private placement of common stock | $ 9,375 | 1,490,625 | (1,030,000) | 470,000 | |
Proceeds from private placement of common stock, shares | 937,500 | ||||
Issuance of common stock in business acquisition | $ 25,000 | 4,800,000 | 4,825,000 | ||
Issuance of common stock in business acquisition, shares | 2,500,000 | ||||
Proceeds from exercise of stock options | $ 150 | 16,500 | 16,650 | ||
Proceeds from exercise of stock option, shares | 15,000 | ||||
Exercise of stock options net of 96,056 shares withheld | $ 26 | (26) | |||
Exercise of stock options net of 1,435 shares withheld, shares | 2,625 | ||||
Issuance of common stock for employee services | $ 91 | 19,909 | 20,000 | ||
Issuance of common stock for employee services, shares | 9,095 | ||||
Net income | (507,013) | (507,013) | |||
Ending balance, value at Dec. 31, 2021 | $ 167,467 | 57,271,810 | 0 | (48,249,792) | 9,189,485 |
Ending balance, shares at Dec. 31, 2021 | 16,746,696 | ||||
Correction of error in valuation of stock issued in business acquisition | (825,000) | (825,000) | |||
Stock-based compensation | 231,115 | 231,115 | |||
Proceeds from exercise of stock options | $ 432 | 46,208 | 46,640 | ||
Proceeds from exercise of stock option, shares | 43,200 | ||||
Exercise of stock options net of 96,056 shares withheld | $ 979 | (979) | |||
Issuance of common stock for employee services, shares | 97,944 | ||||
Net income | (113,899) | (113,899) | |||
Ending balance, value at Mar. 31, 2022 | $ 168,878 | $ 56,723,154 | $ 0 | $ (48,363,691) | $ 8,528,341 |
Ending balance, shares at Mar. 31, 2022 | 16,887,840 |
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 ($) | 9 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ (1,197,713) | $ 339,617 |
Adjustments to Reconcile Net Loss to Net Cash Used In Operating Activities - | ||
Depreciation and amortization | 137,869 | 104,379 |
Stock-based compensation expense | 741,637 | 314,252 |
Gain on forgiveness of bank note | 0 | (808,962) |
Changes in Operating Assets and Liabilities, net of effects of business acquisition - | ||
Non-cash interest expense | 36,018 | 0 |
Accounts receivable, net | (791,959) | (52,344) |
Inventories, net | (623,817) | 247,963 |
Due from related party | 84,210 | 0 |
Prepaid expenses | (85,791) | 1,551 |
Accounts payable | 1,118,149 | (41,394) |
Customer advances | (258,487) | (184,175) |
Accrued compensation and other | (40,083) | 3,693 |
Net Cash Used In Operating Activities | (879,967) | (75,420) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Additional patent costs | (23,098) | (40,307) |
Purchases of property and equipment | (59,562) | (49,160) |
Acquisition of businesses | (421,729) | (166,667) |
Net Cash Used In Investing Activities | (504,389) | (256,134) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Payment of capital lease obligations | (28,546) | (49,569) |
Payments of long-term debt | (154,453) | 0 |
Payment of debt issuance costs | (26,000) | 0 |
Gross proceeds from private placement of common stock | 1,500,000 | 0 |
Gross proceeds from exercise of stock options | 63,290 | 28,271 |
Net Cash Provided By (Used in) Financing Activities | 1,354,291 | (21,298) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (30,065) | (352,852) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 861,650 | 1,134,697 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 831,585 | 781,845 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES: | ||
Offering costs included in accrued compensation and other | 10,000 | 0 |
Acquisition of business financed with long-term debt | 2,600,000 | 0 |
Acquisition of Manufacturing Equipment Under Capital Lease | $ 0 | $ 161,977 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Mar. 31, 2022 | |
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 third quarter and nine months 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. Revision of the Second Quarter 2022 Unaudited Consolidated Financial Statements The Company identified an error in the valuation of 2,500,000 shares of common stock issued on October 4, 2021 in the business acquisition described in Note 2 resulting in an $825,000 overstatement of Additional Paid-In Capital and Goodwill in the December 31, 2021 balance sheet presented in the quarterly report on Form 10-Q for the quarter ended December 31, 2021. This change does not impact the number of shares issued as part of the transaction; it only changes the imputed value of the common stock issued. The financial statements for the prior interim fiscal quarter ended December 31, 2021 have been revised by an $825,000 adjustment to the opening balance of Additional Paid-In Capital in the accompanying Statement of Stockholders Equity for the quarter ended March 31, 2022, and by an adjustment of Goodwill at the acquisition date as described in Note 2. No profit and loss accounts in the current or prior interim periods are affected by this revision. 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 and nine months ended March 31, 2022, the effect of such securities was antidilutive and not included in the fully diluted calculation because of the net loss generated during those periods. The following is the calculation of income (loss) per share for the three and nine months ended March 31, 2022 and 2021: Schedule of earnings per share Three Months Nine Months 2022 2021 2022 2021 Net Income (Loss) - Basic and Diluted $ (113,899 ) $ 552,278 $ (1,197,713 ) $ 339,617 Weighted Average Shares Outstanding Basic 16,803,040 13,243,595 15,545,869 13,208,805 Fully Diluted 16,803,040 14,068,459 15,545,869 13,841,700 Income (Loss) Per Share Basic $ (0.01 ) $ 0.04 $ (0.08 ) $ 0.03 Fully Diluted $ (0.01 ) $ 0.04 $ (0.08 ) $ 0.02 The number of shares issuable upon the exercise of outstanding stock options that were excluded from the computation as their effect was antidilutive was 2,817,500 15,000 260,000 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 |
BUSINESS ACQUISITION
BUSINESS ACQUISITION | 9 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
BUSINESS ACQUISITION | 2. BUSINESS ACQUISITION On October 4, 2021, the Company entered into an asset purchase agreement to acquire substantially all of the assets of Lighthouse Imaging, LLC, a medical optics and digital imaging business, as described in Forms 8-K and 8-K/A that the Company filed with the Securities and Exchange Commission on October 8, 2021 and December 20, 2021, respectively. The aggregate cash purchase price consisted of $ 2,855,063 1,500,000 2,500,000 The Company financed the cash portion of the acquisition by securing a $ 2,600,000 937,500 1,500,000 The earn-out consideration will be paid at a rate of $750,000 per annum from October 1, 2021 to September 30, 2023 Purchase Price Allocation and Goodwill The total purchase price of $ 8,990,670 Revision of the Second Quarter 2022 Unaudited Consolidated Financial Statements. Schedule of acquired assets, contingent consideration and assumed liabilities At Acquisition Effective Date October 4, 2021 Amount Trade accounts receivable, net $ 676,977 Inventories 456,008 Other current assets 82,125 Fixed assets 110,243 Patents 48,153 Total Assets Acquired 1,373,506 Accounts payable 214,742 Customer advances 826,679 Accrued compensation and other 302,961 Total Liabilities Assumed 1,344,382 Net assets acquired 29,124 Goodwill 8,136,546 Total Purchase Price-Initial and Contingent Consideration $ 8,165,670 Consolidated Pro Forma Results Consolidated unaudited pro forma results of operations for the Company are presented below assuming that the acquisition of the Lighthouse division had occurred on July 1, 2020. Pro forma operating results include net adjustments resulting from the acquisition transaction during the three and nine months ended March 31, 2022 and 2021. Schedule of consolidated pro forma results Three Months Nine Months 2022 2021 2022 2021 (Actual) (Pro Forma) (Pro Forma) (Pro Forma) Revenues $ 4,651,352 $ 3,600,498 $ 12,329,074 $ 11,597,530 Net income (loss) (113,899 ) 593,668 (1,140,418 ) 382,681 Net income (loss) per share Basic $ (0.01 ) $ (0.04 ) $ (0.07 ) $ (0.02 ) Fully diluted $ (0.01 ) $ (0.03 ) $ (0.07 ) $ (0.02 ) Pro forma financial information is not necessarily indicative of the Company’s actual results of operations if the acquisition had been completed at the date indicated, nor is it necessarily an indication of future operating results. Amounts do not include any operating efficiencies or cost saving that the Company believes may be achievable. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | 3. INVENTORIES Inventories are stated at the lower of cost (first-in, first-out) or market and consisted of the following: Schedule of inventory March 31, June 30, Raw Materials $ 1,292,861 $ 626,255 Work-In-Progress 426,771 453,117 Finished Goods 1,245,588 806,023 Total Inventories $ 2,965,220 $ 1,885,395 |
BANK FINANCING ACTIVITIES
BANK FINANCING ACTIVITIES | 9 Months Ended |
Mar. 31, 2022 | |
Bank Financing Activities | |
BANK FINANCING ACTIVITIES | 4. BANK FINANCING ACTIVITIES Bank Line of Credit On October 4, 2021, the Company entered into a Loan Agreement with Main Street Bank of Marlborough, Massachusetts, which provided for a $ 2,600,000 250,000 prime lending rate plus 1.5% per annum and shall not be less than 4.75% per annum Long-Term Debt Long-term debt consists of the following at March 31, 2022: Schedule of long-term debt Amount Term Loan Note payable to Main Street Bank with monthly 30,952 1.5 October 15, 2028 $ 2,445,238 Less current maturities (367,714 ) Less debt issuance costs, net of accumulated amortization of $ 1,548 (24,454 ) Long-term debt, net of current portion of debt issuance costs $ 2,053,070 At March 31, 2022 principal payments due on the Term Loan Note payable are as follows: Schedule of future minimum note payable Fiscal Year Ending June 30: 2022 $ 92,857 2023 371,429 2024 371,429 2025 371,429 2026 371,429 Thereafter 866,665 $ 2,445,238 |
LEASE OBLIGATIONS
LEASE OBLIGATIONS | 9 Months Ended |
Mar. 31, 2022 | |
Lease Obligations | |
LEASE OBLIGATIONS | 5. LEASE OBLIGATIONS In March 2021, the Company entered into a five-year capital lease in the amount of $ 161,977 47,750 156,640 On July 1, 2019, the Company entered into a three-year operating lease for its facility in El Paso, Texas, and in February 2022 the Company entered into an extension of the lease for an additional three years through June 2025. Remaining minimum lease payments at March 31, 2022 total $ 150,504 15,705 21,438 140,607 45,405 95,202 At March 31, 2022 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 $ 12,155 $ 15,705 2023 48,619 43,828 2024 48,619 44,924 2025 43,917 46,047 2026 28,006 – Total Minimum Payments 181,316 $ 150,504 Less: amount representing interest 19,118 Present value of minimum lease payments 162,198 Less: current portion 40,102 $ 122,096 The Company’s operating leases for its Gardner, Massachusetts office, production and storage spaces plus an equipment lease as well as the Windham, Maine office and production space have expired and are continuing on a month-to-month tenant at will basis. Rent expense on these operating leases was $ 222,112 124,848 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Mar. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | 6. STOCK-BASED COMPENSATION Stock Options The following table summarizes stock-based compensation expense for the three and nine months ended March 31, 2022 and 2021: Schedule of stock-based compensation expense Three Months Nine Months 2022 2021 2022 2021 Cost of Goods Sold $ 34,712 $ 11,233 $ 91,542 $ 33,699 Research and Development 70,237 19,435 164,036 55,795 Selling, General and Administrative 126,166 55,359 466,059 224,758 Stock Based Compensation Expense $ 231,115 $ 86,027 $ 721,637 $ 314,252 No compensation has been capitalized because such amounts would have been immaterial. The following tables summarize stock option activity for the nine months ended March 31, 2022: Schedule of stock option activity Options Outstanding Number of Weighted Average Weighted Average Outstanding at July 1, 2021 2,578,200 $ 1.13 6.73 Exercised (255,700 ) $ 1.10 Granted 584,500 $ 1.74 Cancelled (89,500 ) $ 0.99 Outstanding at March 31, 2022 2,817,500 $ 1.35 7.35 Information related to the stock options outstanding as of March 31, 2022 is as follows: Schedule of stock options outstanding by exercise price range Range of Number of Weighted- Weighted- Exercisable Exercisable $ 0.48 60,000 4.00 $ 0.48 60,000 $ 0.48 $ 0.50 80,000 4.22 $ 0.50 80,000 $ 0.50 $ 0.55 15,000 6.01 $ 0.55 15,000 $ 0.55 $ 0.70 100,000 6.35 $ 0.70 100,000 $ 0.70 $ 0.73 670,000 4.81 $ 0.73 670,000 $ 0.73 $ 0.85 6,000 0.76 $ 0.85 6,000 $ 0.85 $ 0.90 36,000 2.19 $ 0.90 36,000 $ 0.90 $ 1.25 45,000 7.97 $ 1.25 30,000 $ 1.25 $ 1.30 441,000 7.20 $ 1.30 291,520 $ 1.30 $ 1.40 70,000 8.64 $ 1.40 70,000 $ 1.40 $ 1.42 100,000 7.45 $ 1.42 66,667 $ 1.42 $ 1.45 5,000 8.94 $ 1.45 1,667 $ 1.45 $ 1.50 70,000 7.69 $ 1.50 70,000 $ 1.50 $ 1.68 540,000 9.18 $ 1.68 270,000 $ 1.68 $ 2.00 140,000 9.36 $ 2.00 – $ – $ 2.09 249,500 9.86 $ 2.09 – $ – $ 2.26 190,000 9.64 $ 2.26 90,000 $ 2.26 $ 1.35 2,817,500 7.35 $ 1.35 1,856,854 $ 1.10 The aggregate intrinsic value of the Company’s in-the-money outstanding and exercisable options as of March 31, 2022 was $ 1,913,350 1,689,898 |
SALE OF STOCK IN OCTOBER 2021
SALE OF STOCK IN OCTOBER 2021 | 9 Months Ended |
Mar. 31, 2022 | |
Sale Of Stock In October 2021 | |
SALE OF STOCK IN OCTOBER 2021 | 7. 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 |
ISSUANCE OF COMMON STOCK IN BUS
ISSUANCE OF COMMON STOCK IN BUSINESS ACQUISITION | 9 Months Ended |
Mar. 31, 2022 | |
Issuance Of Common Stock In Business Acquisition | |
ISSUANCE OF COMMON STOCK IN BUSINESS ACQUISITION | 8. ISSUANCE OF COMMON STOCK IN BUSINESS ACQUISITION On October 4, 2021, the Company issued 2,500,000 1.60 4,000,000 In conjunction with the issuance, the Company agreed to use reasonable efforts to effectuate within a reasonable period after the October 4, 2021 business acquisition date a registration statement with the Securities and Exchange Commission to register the resale by the sellers of 2,500,000 shares of its common stock issued in the business acquisition. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 9 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | 9. 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 March 2022 and 2021: Schedule of disaggregation of revenues Three Months Nine Months 2022 2021 2022 2021 Engineering Design Services $ 1,532,414 $ 549,636 $ 3,659,667 $ 1,986,856 Optical Components 1,927,963 1,456,213 4,873,294 4,330,511 Medical Device Products and Assemblies 1,190,975 452,441 2,351,776 1,684,274 Total Revenues $ 4,651,352 $ 2,458,290 $ 10,884,737 $ 8,001,641 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 March 31, 2022, there were no contract assets recorded in the Company’s Consolidated Balance Sheets. The Company’s contract liabilities arise from 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: Schedule of contract liabilities Three Months Nine Months 2022 2021 2022 2021 Contract Liabilities, Beginning of Period $ 1,137,470 $ 151,877 $ 450,084 $ 417,059 Assumed in Business Acquisition – – 826,679 – Unearned Revenue Received from Customers 774,316 442,681 1,388,700 614,384 Revenue Recognized (893,511 ) (361,674 ) (1,647,188 ) (798,559 ) Contract Liabilities, End of Period $ 1,018,275 $ 232,884 $ 1,018,275 $ 232,884 |
COVID-19 PANDEMIC
COVID-19 PANDEMIC | 9 Months Ended |
Mar. 31, 2022 | |
Covid-19 Pandemic | |
COVID-19 PANDEMIC | 10. 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. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Mar. 31, 2022 | |
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 third quarter and nine months 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. |
Revision of the Second Quarter 2022 Unaudited Consolidated Financial Statements | Revision of the Second Quarter 2022 Unaudited Consolidated Financial Statements The Company identified an error in the valuation of 2,500,000 shares of common stock issued on October 4, 2021 in the business acquisition described in Note 2 resulting in an $825,000 overstatement of Additional Paid-In Capital and Goodwill in the December 31, 2021 balance sheet presented in the quarterly report on Form 10-Q for the quarter ended December 31, 2021. This change does not impact the number of shares issued as part of the transaction; it only changes the imputed value of the common stock issued. The financial statements for the prior interim fiscal quarter ended December 31, 2021 have been revised by an $825,000 adjustment to the opening balance of Additional Paid-In Capital in the accompanying Statement of Stockholders Equity for the quarter ended March 31, 2022, and by an adjustment of Goodwill at the acquisition date as described in Note 2. No profit and loss accounts in the current or prior interim periods are affected by this revision. |
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 and nine months ended March 31, 2022, the effect of such securities was antidilutive and not included in the fully diluted calculation because of the net loss generated during those periods. The following is the calculation of income (loss) per share for the three and nine months ended March 31, 2022 and 2021: Schedule of earnings per share Three Months Nine Months 2022 2021 2022 2021 Net Income (Loss) - Basic and Diluted $ (113,899 ) $ 552,278 $ (1,197,713 ) $ 339,617 Weighted Average Shares Outstanding Basic 16,803,040 13,243,595 15,545,869 13,208,805 Fully Diluted 16,803,040 14,068,459 15,545,869 13,841,700 Income (Loss) Per Share Basic $ (0.01 ) $ 0.04 $ (0.08 ) $ 0.03 Fully Diluted $ (0.01 ) $ 0.04 $ (0.08 ) $ 0.02 The number of shares issuable upon the exercise of outstanding stock options that were excluded from the computation as their effect was antidilutive was 2,817,500 15,000 260,000 |
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) | 9 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of earnings per share | Schedule of earnings per share Three Months Nine Months 2022 2021 2022 2021 Net Income (Loss) - Basic and Diluted $ (113,899 ) $ 552,278 $ (1,197,713 ) $ 339,617 Weighted Average Shares Outstanding Basic 16,803,040 13,243,595 15,545,869 13,208,805 Fully Diluted 16,803,040 14,068,459 15,545,869 13,841,700 Income (Loss) Per Share Basic $ (0.01 ) $ 0.04 $ (0.08 ) $ 0.03 Fully Diluted $ (0.01 ) $ 0.04 $ (0.08 ) $ 0.02 |
BUSINESS ACQUISITION (Tables)
BUSINESS ACQUISITION (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of acquired assets, contingent consideration and assumed liabilities | Schedule of acquired assets, contingent consideration and assumed liabilities At Acquisition Effective Date October 4, 2021 Amount Trade accounts receivable, net $ 676,977 Inventories 456,008 Other current assets 82,125 Fixed assets 110,243 Patents 48,153 Total Assets Acquired 1,373,506 Accounts payable 214,742 Customer advances 826,679 Accrued compensation and other 302,961 Total Liabilities Assumed 1,344,382 Net assets acquired 29,124 Goodwill 8,136,546 Total Purchase Price-Initial and Contingent Consideration $ 8,165,670 |
Schedule of consolidated pro forma results | Schedule of consolidated pro forma results Three Months Nine Months 2022 2021 2022 2021 (Actual) (Pro Forma) (Pro Forma) (Pro Forma) Revenues $ 4,651,352 $ 3,600,498 $ 12,329,074 $ 11,597,530 Net income (loss) (113,899 ) 593,668 (1,140,418 ) 382,681 Net income (loss) per share Basic $ (0.01 ) $ (0.04 ) $ (0.07 ) $ (0.02 ) Fully diluted $ (0.01 ) $ (0.03 ) $ (0.07 ) $ (0.02 ) |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Schedule of inventory March 31, June 30, Raw Materials $ 1,292,861 $ 626,255 Work-In-Progress 426,771 453,117 Finished Goods 1,245,588 806,023 Total Inventories $ 2,965,220 $ 1,885,395 |
BANK FINANCING ACTIVITIES (Tabl
BANK FINANCING ACTIVITIES (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Bank Financing Activities | |
Schedule of long-term debt | Schedule of long-term debt Amount Term Loan Note payable to Main Street Bank with monthly 30,952 1.5 October 15, 2028 $ 2,445,238 Less current maturities (367,714 ) Less debt issuance costs, net of accumulated amortization of $ 1,548 (24,454 ) Long-term debt, net of current portion of debt issuance costs $ 2,053,070 |
Schedule of future minimum note payable | Schedule of future minimum note payable Fiscal Year Ending June 30: 2022 $ 92,857 2023 371,429 2024 371,429 2025 371,429 2026 371,429 Thereafter 866,665 $ 2,445,238 |
LEASE OBLIGATIONS (Tables)
LEASE OBLIGATIONS (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Lease Obligations | |
Future minimum lease payments | Future minimum lease payments Fiscal Year Ending June 30: Capital Leases Operating Lease 2022 $ 12,155 $ 15,705 2023 48,619 43,828 2024 48,619 44,924 2025 43,917 46,047 2026 28,006 – Total Minimum Payments 181,316 $ 150,504 Less: amount representing interest 19,118 Present value of minimum lease payments 162,198 Less: current portion 40,102 $ 122,096 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of stock-based compensation expense | Schedule of stock-based compensation expense Three Months Nine Months 2022 2021 2022 2021 Cost of Goods Sold $ 34,712 $ 11,233 $ 91,542 $ 33,699 Research and Development 70,237 19,435 164,036 55,795 Selling, General and Administrative 126,166 55,359 466,059 224,758 Stock Based Compensation Expense $ 231,115 $ 86,027 $ 721,637 $ 314,252 |
Schedule of stock option activity | Schedule of stock option activity Options Outstanding Number of Weighted Average Weighted Average Outstanding at July 1, 2021 2,578,200 $ 1.13 6.73 Exercised (255,700 ) $ 1.10 Granted 584,500 $ 1.74 Cancelled (89,500 ) $ 0.99 Outstanding at March 31, 2022 2,817,500 $ 1.35 7.35 |
Schedule of stock options outstanding by exercise price range | Schedule of stock options outstanding by exercise price range Range of Number of Weighted- Weighted- Exercisable Exercisable $ 0.48 60,000 4.00 $ 0.48 60,000 $ 0.48 $ 0.50 80,000 4.22 $ 0.50 80,000 $ 0.50 $ 0.55 15,000 6.01 $ 0.55 15,000 $ 0.55 $ 0.70 100,000 6.35 $ 0.70 100,000 $ 0.70 $ 0.73 670,000 4.81 $ 0.73 670,000 $ 0.73 $ 0.85 6,000 0.76 $ 0.85 6,000 $ 0.85 $ 0.90 36,000 2.19 $ 0.90 36,000 $ 0.90 $ 1.25 45,000 7.97 $ 1.25 30,000 $ 1.25 $ 1.30 441,000 7.20 $ 1.30 291,520 $ 1.30 $ 1.40 70,000 8.64 $ 1.40 70,000 $ 1.40 $ 1.42 100,000 7.45 $ 1.42 66,667 $ 1.42 $ 1.45 5,000 8.94 $ 1.45 1,667 $ 1.45 $ 1.50 70,000 7.69 $ 1.50 70,000 $ 1.50 $ 1.68 540,000 9.18 $ 1.68 270,000 $ 1.68 $ 2.00 140,000 9.36 $ 2.00 – $ – $ 2.09 249,500 9.86 $ 2.09 – $ – $ 2.26 190,000 9.64 $ 2.26 90,000 $ 2.26 $ 1.35 2,817,500 7.35 $ 1.35 1,856,854 $ 1.10 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenues | Schedule of disaggregation of revenues Three Months Nine Months 2022 2021 2022 2021 Engineering Design Services $ 1,532,414 $ 549,636 $ 3,659,667 $ 1,986,856 Optical Components 1,927,963 1,456,213 4,873,294 4,330,511 Medical Device Products and Assemblies 1,190,975 452,441 2,351,776 1,684,274 Total Revenues $ 4,651,352 $ 2,458,290 $ 10,884,737 $ 8,001,641 |
Schedule of contract liabilities | Schedule of contract liabilities Three Months Nine Months 2022 2021 2022 2021 Contract Liabilities, Beginning of Period $ 1,137,470 $ 151,877 $ 450,084 $ 417,059 Assumed in Business Acquisition – – 826,679 – Unearned Revenue Received from Customers 774,316 442,681 1,388,700 614,384 Revenue Recognized (893,511 ) (361,674 ) (1,647,188 ) (798,559 ) Contract Liabilities, End of Period $ 1,018,275 $ 232,884 $ 1,018,275 $ 232,884 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Loss per share) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Accounting Policies [Abstract] | ||||
Net Loss - Basic and Fully Diluted | $ (113,899) | $ 552,278 | $ (1,197,713) | $ 339,617 |
Weighted Average Shares Outstanding Basic | 16,803,040 | 13,243,595 | 15,545,869 | 13,208,805 |
Weighted Average Shares Outstanding Fully Diluted | 16,803,040 | 14,068,459 | 15,545,869 | 13,841,700 |
Income (Loss) Per Share Basic | $ (0.01) | $ 0.04 | $ (0.08) | $ 0.03 |
Income (Loss) Per Share Fully diluted | $ (0.01) | $ 0.04 | $ (0.08) | $ 0.02 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Accounting Policies [Abstract] | ||||
Outstanding stock options and warrants that were excluded from the computation as their effect was antidilutive | 2,817,500 | 2,817,500 | 15,000 | 260,000 |
Goodwill impairment | $ 0 |
BUSINESS ACQUISITION (Details)
BUSINESS ACQUISITION (Details) | Mar. 31, 2022USD ($) |
Business Combination and Asset Acquisition [Abstract] | |
Trade accounts receivable, net | $ 676,977 |
Inventories | 456,008 |
Other current assets | 82,125 |
Fixed assets | 110,243 |
Patents | 48,153 |
Total Assets Acquired | 1,373,506 |
Accounts payable | 214,742 |
Customer advances | 826,679 |
Accrued compensation and other | 302,961 |
Total Liabilities Assumed | 1,344,382 |
Net assets acquired | 29,124 |
Goodwill | 8,136,546 |
Total Purchase Price-Initial and Contingent Consideration | $ 8,165,670 |
BUSINESS ACQUISITION (Details 1
BUSINESS ACQUISITION (Details 1) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | ||||
Revenues | $ 4,651,352 | $ 3,600,498 | $ 12,329,074 | $ 11,597,530 |
Net loss | $ (113,899) | $ 593,668 | $ (1,140,418) | $ 382,681 |
Net income (loss) per share Basic | $ (0.01) | $ (0.04) | $ (0.07) | $ (0.02) |
Net income (loss) per share Fully diluted | $ (0.01) | $ (0.03) | $ (0.07) | $ (0.02) |
BUSINESS ACQUISITION (Details N
BUSINESS ACQUISITION (Details Narrative) - USD ($) | Oct. 04, 2021 | Sep. 30, 2021 | Dec. 31, 2021 |
Business Acquisition [Line Items] | |||
Business Combination, Price of Acquisition, Expected | $ 8,990,670 | ||
Lighthouse Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Stock Issued During Period, Shares, New Issues | 937,500 | ||
Proceeds from issuance of common stock, gross | $ 1,500,000 | ||
Main Street Bank [Member] | |||
Business Acquisition [Line Items] | |||
Termination Loans | $ 2,600,000 | ||
Lighthouse Imaging [Member] | |||
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Gross | 2,855,063 | ||
Business Combination, Consideration Transferred, Other | $ 1,500,000 | ||
Stock Issued During Period, Shares, Acquisitions | 2,500,000 | ||
Earn Out Consideration Description | $750,000 per annum from October 1, 2021 to September 30, 2023 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Inventory Disclosure [Abstract] | ||
Raw Materials | $ 1,292,861 | $ 626,255 |
Work-In-Progress | 426,771 | 453,117 |
Finished Goods | 1,245,588 | 806,023 |
Total Inventories | $ 2,965,220 | $ 1,885,395 |
BANK FINANCING ACTIVITIES (Deta
BANK FINANCING ACTIVITIES (Details) - USD ($) | 9 Months Ended | |
Mar. 31, 2022 | Jun. 30, 2021 | |
Debt Instrument [Line Items] | ||
Term Loan Note payable | $ 2,445,238 | |
Less current maturities | (367,714) | |
Accumulated amortization of debt issuance costs | 1,548 | |
debt issuance costs, net of accumulated amortization | (24,454) | |
Long-term Debt, net of current portion of debt issuance costs | $ 2,053,070 | $ 0 |
Main Street Bank [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Frequency of Periodic Payment | monthly | |
Debt Instrument, Periodic Payment | $ 30,952 | |
Debt Instrument, Interest Rate, Stated Percentage | 150.00% | |
Debt Instrument, Maturity Date | Oct. 15, 2028 |
BANK FINANCING ACTIVITIES (De_2
BANK FINANCING ACTIVITIES (Details 1) | Mar. 31, 2022USD ($) |
Bank Financing Activities | |
2022 | $ 92,857 |
2023 | 371,429 |
2024 | 371,429 |
2025 | 371,429 |
2026 | 371,429 |
Thereafter | $ 866,665 |
BANK FINANCING ACTIVITIES (De_3
BANK FINANCING ACTIVITIES (Details Narrative) | Oct. 04, 2021USD ($) |
Main Street Bank [Member] | |
Debt Instrument [Line Items] | |
Revolving Line of Credit | $ 250,000 |
Line of Credit Facility, Interest Rate Description | prime lending rate plus 1.5% per annum and shall not be less than 4.75% per annum |
Main Street Bank [Member] | |
Debt Instrument [Line Items] | |
Term Loan | $ 2,600,000 |
LEASE OBLIGATION (Details)
LEASE OBLIGATION (Details) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Total minimum payments | $ 150,504 | |
Present value of minimum lease payments | 156,640 | |
Capital lease obligation, current | 40,102 | $ 38,347 |
Capital lease obligation, noncurrent | 122,096 | $ 152,397 |
Operating Lease [Member] | ||
2022 | 15,705 | |
2023 | 43,828 | |
2024 | 44,924 | |
2025 | 46,047 | |
2026 | 0 | |
Total minimum payments | 150,504 | |
Capital Lease Obligations [Member] | ||
2022 | 12,155 | |
2023 | 48,619 | |
2024 | 48,619 | |
2025 | 43,917 | |
2026 | 28,006 | |
Total minimum payments | 181,316 | |
Less: amount representing interest | 19,118 | |
Present value of minimum lease payments | 162,198 | |
Capital lease obligation, current | 40,102 | |
Capital lease obligation, noncurrent | $ 122,096 |
LEASE OBLIGATIONS (Details Narr
LEASE OBLIGATIONS (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | Jan. 31, 2020 | |
Lessee, Lease, Description [Line Items] | ||||||
Net book value of fixed assets under capital lease obligations | $ 156,640 | $ 156,640 | ||||
Lessee, Operating Lease, Liability, to be Paid | 150,504 | 150,504 | ||||
Operating Lease, Right-of-Use Asset | 140,607 | 140,607 | $ 61,247 | |||
Operating Lease, Liability, Current | 45,405 | 45,405 | 61,247 | |||
Operating Lease, Liability, Noncurrent | 95,202 | 95,202 | $ 0 | |||
El Paso [Member] | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Operating Lease, Liability, Current | 45,405 | 45,405 | ||||
Operating Lease, Liability, Noncurrent | 95,202 | 95,202 | ||||
El Paso Texas [Member] | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Operating lease expense | $ 15,705 | $ 21,438 | ||||
Gardner Ma [Member] | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Operating lease expense | $ 222,112 | $ 124,848 | ||||
Manufacturing Equipment [Member] | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Capital lease obligation | $ 161,977 | $ 161,977 | ||||
Option 10 [Member] | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Capital lease obligation | $ 47,750 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details - Stock based compensation) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock based compensation expense | $ 231,115 | $ 86,027 | $ 721,637 | $ 314,252 |
Cost of Sales [Member] | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock based compensation expense | 34,712 | 11,233 | 91,542 | 33,699 |
Research and Development Expense [Member] | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock based compensation expense | 70,237 | 19,435 | 164,036 | 55,795 |
Selling, General and Administrative Expenses [Member] | ||||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock based compensation expense | $ 126,166 | $ 55,359 | $ 466,059 | $ 224,758 |
STOCK-BASED COMPENSATION (Det_2
STOCK-BASED COMPENSATION (Details - Option activity) - Equity Option [Member] | 9 Months Ended |
Mar. 31, 2022$ / 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 |
Exercised | shares | (255,700) |
Exercised | $ / shares | $ 1.10 |
Granted | shares | 584,500 |
Granted | $ / shares | $ 1.74 |
Options cancelled | shares | (89,500) |
Weighted average exercise price, cancelled | $ / shares | $ 0.99 |
Options outstanding, ending | shares | 2,817,500 |
Weighted average exercise price, ending price | $ / shares | $ 1.35 |
Weighted Average Contractual Life | 7 years 4 months 6 days |
STOCK-BASED COMPENSATION (Det_3
STOCK-BASED COMPENSATION (Details - Options by exercise price) - $ / shares | 9 Months Ended | |
Mar. 31, 2022 | Jun. 30, 2021 | |
Option 17 [Member] | ||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of exercise prices | 2.26 | |
Equity Option [Member] | ||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of exercise prices | 1.35 | |
Number of shares outstanding | 2,817,500 | 2,578,200 |
Weighted average contractual life | 7 years 4 months 6 days | |
Weighted average exercise price | $ 1.35 | $ 1.13 |
Exercisable number of shares | 1,856,854 | |
Exercisable weighted average exercise price | $ 1.10 | |
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 | |
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 2 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 | 15,000 | |
Weighted average contractual life | 6 years 3 days | |
Weighted average exercise price | $ 0.55 | |
Exercisable number of shares | 15,000 | |
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 4 months 6 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 | 670,000 | |
Weighted average contractual life | 4 years 9 months 21 days | |
Weighted average exercise price | $ 0.73 | |
Exercisable number of shares | 670,000 | |
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 | 9 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 2 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 | 1.25 | |
Number of shares outstanding | 45,000 | |
Weighted average contractual life | 7 years 11 months 19 days | |
Weighted average exercise price | $ 1.25 | |
Exercisable number of shares | 30,000 | |
Exercisable weighted average exercise price | $ 1.25 | |
Option 9 [Member] | ||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of exercise prices | 1.30 | |
Number of shares outstanding | 441,000 | |
Weighted average contractual life | 7 years 2 months 12 days | |
Weighted average exercise price | $ 1.30 | |
Exercisable number of shares | 291,520 | |
Exercisable weighted average exercise price | $ 1.30 | |
Option 10 [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 | 8 years 7 months 20 days | |
Weighted average exercise price | $ 1.40 | |
Exercisable number of shares | 70,000 | |
Exercisable weighted average exercise price | $ 1.40 | |
Option 11 [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 5 months 12 days | |
Weighted average exercise price | $ 1.42 | |
Exercisable number of shares | 66,667 | |
Exercisable weighted average exercise price | $ 1.42 | |
Option 12 [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 | 8 years 11 months 8 days | |
Weighted average exercise price | $ 1.45 | |
Exercisable number of shares | 1,667 | |
Exercisable weighted average exercise price | $ 1.45 | |
Option 13 [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 | 7 years 8 months 8 days | |
Weighted average exercise price | $ 1.50 | |
Exercisable number of shares | 70,000 | |
Exercisable weighted average exercise price | $ 1.50 | |
Option 14 [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 2 months 4 days | |
Weighted average exercise price | $ 1.68 | |
Exercisable number of shares | 270,000 | |
Exercisable weighted average exercise price | $ 1.68 | |
Option 15 [Member] | ||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of exercise prices | 2.00 | |
Number of shares outstanding | 140,000 | |
Weighted average contractual life | 9 years 4 months 9 days | |
Weighted average exercise price | $ 2 | |
Exercisable number of shares | 0 | |
Exercisable weighted average exercise price | $ 0 | |
Option 16 [Member] | ||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Range of exercise prices | 2.09 | |
Number of shares outstanding | 249,500 | |
Weighted average contractual life | 9 years 10 months 9 days | |
Weighted average exercise price | $ 2.09 | |
Exercisable number of shares | 0 | |
Exercisable weighted average exercise price | $ 0 | |
Option 17 [Member] | ||
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Number of shares outstanding | 190,000 | |
Weighted average contractual life | 9 years 7 months 20 days | |
Weighted average exercise price | $ 2.26 | |
Exercisable number of shares | 90,000 | |
Exercisable weighted average exercise price | $ 2.26 |
STOCK-BASED COMPENSATION (Det_4
STOCK-BASED COMPENSATION (Details Narrative) | Mar. 31, 2022USD ($) |
Share-Based Payment Arrangement [Abstract] | |
Aggregate intrinsic value of "in the money" outstanding | $ 1,913,350 |
Aggregate intrinsic value of "in the money" exercisable | $ 1,689,898 |
SALE OF STOCK IN OCTOBER 2021 (
SALE OF STOCK IN OCTOBER 2021 (Details Narrative) | Oct. 04, 2021shares |
Accredited Investors [Member] | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Number of shares sold | 937,500 |
ISSUANCE OF COMMON STOCK IN B_2
ISSUANCE OF COMMON STOCK IN BUSINESS ACQUISITION (Details Narrative) - USD ($) | Oct. 04, 2021 | Dec. 31, 2021 |
Restructuring Cost and Reserve [Line Items] | ||
Stock Issued During Period, Value, Acquisitions | $ 4,825,000 | |
Lighthouse Imaging LLC [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Stock issued for acquisition | 2,500,000 | |
Issuence per share | $ 1.60 | |
Stock Issued During Period, Value, Acquisitions | $ 4,000,000 |
REVENUE RECOGNITION (Details -
REVENUE RECOGNITION (Details - Revenues) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 4,651,352 | $ 2,458,290 | $ 10,884,737 | $ 8,001,641 |
Engineering Design Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,532,414 | 549,636 | 3,659,667 | 1,986,856 |
Optical Components [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,927,963 | 1,456,213 | 4,873,294 | 4,330,511 |
Medical Device [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 1,190,975 | $ 452,441 | $ 2,351,776 | $ 1,684,274 |
REVENUE RECOGNITION (Details _2
REVENUE RECOGNITION (Details - Contract liabilities) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||||
Contract liabilities, beginning of period | $ 1,137,470 | $ 151,877 | $ 450,084 | $ 417,059 |
Assumed in business acquisition | 0 | 0 | 826,679 | 0 |
Unearned revenue received from customers | 774,316 | 442,681 | 1,388,700 | 614,384 |
Revenue recognized | (893,511) | (361,674) | (1,647,188) | (798,559) |
Contract liabilities, end of period | $ 1,018,275 | $ 232,884 | $ 1,018,275 | $ 232,884 |