Cover
Cover - shares | 3 Months Ended | |
Sep. 30, 2023 | Nov. 09, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2024 | |
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 | |
Trading Symbol | POCI | |
Security Exchange Name | NASDAQ | |
Title of 12(g) Security | Common Stock, $0.01 par value | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 6,066,518 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 |
Current Assets: | ||
Cash and cash equivalents | $ 1,370,469 | $ 2,925,852 |
Accounts receivable, net of allowance for doubtful accounts of $690,097 at September 30, 2023 and $606,715 at June 30, 2022 | 4,533,126 | 3,907,407 |
Inventories | 2,971,211 | 2,776,216 |
Prepaid expenses | 361,801 | 249,681 |
Total current assets | 9,236,607 | 9,859,156 |
Fixed Assets: | ||
Machinery and equipment | 3,243,496 | 3,227,481 |
Leasehold improvements | 842,455 | 825,752 |
Furniture and fixtures | 240,917 | 242,865 |
Total fixed assets | 4,326,868 | 4,296,098 |
Less—Accumulated depreciation and amortization | 3,914,142 | 3,862,578 |
Net fixed assets | 412,726 | 433,520 |
Operating lease right-to-use asset | 317,083 | 358,437 |
Patents, net | 277,858 | 265,111 |
Goodwill | 8,824,210 | 8,824,210 |
TOTAL ASSETS | 19,068,484 | 19,740,434 |
Current Liabilities: | ||
Current portion of capital lease obligation | 43,859 | 43,209 |
Current maturities of long-term debt | 513,259 | 513,259 |
Accounts payable | 1,733,661 | 2,432,264 |
Customer advances | 1,424,983 | 1,174,690 |
Accrued compensation and other | 1,239,781 | 927,521 |
Operating lease liability | 171,075 | 168,677 |
Total current liabilities | 5,126,618 | 5,259,620 |
Capital lease obligation, net of current portion | 57,270 | 68,482 |
Long-term debt, net of current maturities and debt issuance costs | 2,047,665 | 2,175,980 |
Operating lease liability, net of current portion | 146,008 | 189,760 |
Stockholders’ Equity: | ||
Common stock, $0.01 par value: 50,000,000 shares authorized; issued and outstanding – 6,066,518 shares at September 30, 2023 and June 30, 2023 | 60,665 | 60,665 |
Additional paid-in capital | 60,333,680 | 60,224,934 |
Accumulated deficit | (48,703,422) | (48,239,007) |
Total stockholders’ equity | 11,690,923 | 12,046,592 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 19,068,484 | $ 19,740,434 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 690,097 | $ 606,715 |
Common Stock par value | $ 0.01 | $ 0.01 |
Common Stock shares authorized | 50,000,000 | 50,000,000 |
Common Stock shares issued | 6,066,518 | 6,066,518 |
Common Stock shares outstanding | 6,066,518 | 6,066,518 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||
Revenues | $ 4,321,255 | $ 5,085,301 |
Cost of Goods Sold | 2,857,644 | 3,445,860 |
Gross Profit | 1,463,611 | 1,639,441 |
Research and Development Expenses | 212,758 | 245,477 |
Selling, General and Administrative Expenses | 1,656,146 | 1,495,766 |
Total Operating Expenses | 1,868,904 | 1,741,243 |
Operating Loss | (405,293) | (101,802) |
Interest Expense | (59,122) | (56,922) |
Net Loss | $ (464,415) | $ (158,724) |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||
Loss Per Share, Basic | $ (0.08) | $ (0.03) |
Loss Per Share, Fully Diluted | $ (0.08) | $ (0.03) |
Weighted Average Common Shares Outstanding, Basic | 6,066,518 | 5,638,363 |
Weighted Average Common Shares Outstanding, Fully Diluted | 6,066,518 | 5,638,363 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' 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, 2022 | $ 56,834 | $ 57,009,055 | $ (48,094,394) | $ 8,971,495 | |
Beginning balance, shares at Jun. 30, 2022 | 5,683,363 | ||||
Stock-based compensation | 74,990 | 74,990 | |||
Net loss | (158,724) | (158,724) | |||
Ending balance, value at Sep. 30, 2022 | $ 56,834 | 57,084,045 | (48,253,118) | 8,887,761 | |
Ending balance, shares at Sep. 30, 2022 | 5,683,363 | ||||
Beginning balance, value at Jun. 30, 2023 | $ 60,665 | 60,224,934 | (48,239,007) | 12,046,592 | |
Beginning balance, shares at Jun. 30, 2023 | 6,066,518 | ||||
Stock-based compensation | 108,746 | 108,746 | |||
Net loss | (464,415) | (464,415) | |||
Ending balance, value at Sep. 30, 2023 | $ 60,665 | $ 60,333,680 | $ (48,703,422) | $ 11,690,923 | |
Ending balance, shares at Sep. 30, 2023 | 6,066,518 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash Flows from Operating Activities: | ||
Net Loss | $ (464,415) | $ (158,724) |
Adjustments to reconcile net loss to net cash used in by operating activities - | ||
Depreciation and amortization | 51,564 | 52,411 |
Stock-based compensation expense | 108,746 | 74,990 |
Non-cash interest expense | 4,376 | 9,412 |
Changes in operating assets and liabilities - | ||
Accounts receivable, net | (625,719) | (750,813) |
Inventories, net | (194,995) | 266,487 |
Prepaid expenses | (112,120) | 25,950 |
Accounts payable | (698,603) | 151,945 |
Customer advances | 250,293 | 127,778 |
Accrued compensation and other | 307,884 | 400,298 |
Net cash (used in) provided by operating activities | (1,372,989) | 199,734 |
Cash Flows from Investing Activities: | ||
Purchases of fixed assets | (30,770) | (16,019) |
Additional patent costs | (12,747) | (13,155) |
Net cash used in investing activities | (43,517) | (29,174) |
Cash Flows from Financing Activities: | ||
Payment of capital lease obligation | (10,562) | (9,950) |
Payments of long-term debt | (128,315) | (92,857) |
Net cash used in financing activities | (138,876) | (102,807) |
Net (decrease) increase in cash and cash equivalents | (1,555,383) | 67,753 |
Cash and cash equivalents, beginning of period | 2,925,852 | 605,749 |
Cash and cash equivalents, end of period | $ 1,370,469 | $ 673,502 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Sep. 30, 2023 | |
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 2024. 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, 2023, together with the Report of Independent Registered Public Accounting Firm filed under cover of the Company’s 2023 Annual Report on Form 10-K, filed with the Securities and Exchange Commission on September 28, 2023. 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, 2023 and 2022, the following potentially dilutive securities outstanding have been excluded from the computations of weighted-average shares outstanding because such securities have an antidilutive impact due to the net loss reported during those periods. The following is the calculation of income (loss) per share for the three months ended September 30, 2023 and 2022: Schedule of income (loss) per share Three Months 2023 2022 Net Income (Loss) Basic and Fully Diluted $ (464,415 ) $ (158,724 ) Weighted Average Shares Outstanding Basic and Fully Diluted 6,066,518 5,638,363 Loss Per Share - Basic and Fully Diluted $ (0.08 ) $ (0.03 ) 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 1,123,140 904,667 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 such impairments of goodwill or patents have been estimated by management as of September 30, 2023. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Sep. 30, 2023 | |
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 inventories September 30, June 30, Raw Materials $ 1,375,717 $ 1,142,816 Work-In-Progress 326,846 322,538 Finished Goods 1,268,648 1,310,862 Total Inventories $ 2,971,211 $ 2,776,216 |
BANK FINANCING ACTIVITIES
BANK FINANCING ACTIVITIES | 3 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
BANK FINANCING ACTIVITIES | 3. 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 1,250,000 Long-Term Debt Long-term debt consists of the following at September 30, 2023: Schedule of long-term debt Amount Term Loan Note payable to Main Street Bank with monthly 30,952 7.0 October 15, 2028 $ 1,888,095 Permanent Working Capital Loan payable to Main Street Bank with monthly 12,500 8.625 June 15, 2028 $ 712,500 Less current maturities (513,259 ) Less debt issuance costs, net of accumulated amortization of $ 8,233 (39,671 ) Long-term debt, net of current maturities and debt issuance costs $ 2,047,665 At September 30, 2023 principal payments due on the Term Loan Note payable are as follows: Schedule of principal payments due on the term loan note payable Fiscal Year Ending June 30: 2024 $ 384,944 2025 513,259 2026 513,259 2027 513,259 2028 513,259 Thereafter 162,615 Total long term debt $ 2,600,595 |
LEASE OBLIGATIONS
LEASE OBLIGATIONS | 3 Months Ended |
Sep. 30, 2023 | |
Lease Obligations | |
LEASE OBLIGATIONS | 4. LEASE OBLIGATIONS In March 2021 the Company entered into a five-year capital lease in the amount of $ 161,977 47,750 42,572 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 September 30, 2023 total $ 79,740 15,973 11,630 252,501 34,432 317,083 171,075 146,008 At September 30, 2023 future minimum lease payments under the capital lease and operating lease obligations are as follows: Schedule of minimum lease payments Fiscal Year Ending June 30: Capital Leases Operating Lease 2024 $ 36,486 $ 127,204 2025 43,919 178,331 2026 28,004 11,548 2027 – – Total Minimum Payments 108,409 $ 317,083 Less: amount representing interest 7,280 Present value of minimum lease payments 101,129 Less: current portion 43,859 Lease Obligation, net of current portion $ 57,270 The Company’s operating leases for its Gardner, Massachusetts office, production and storage spaces plus an equipment lease have expired and continue on a month-to-month tenant-at-will basis. Rent expense on these operating leases was $ 48,799 50,826 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
STOCK-BASED COMPENSATION | 5. STOCK-BASED COMPENSATION Stock Options The following table summarizes stock-based compensation expense for the three months ended September 30, 2023 and 2022. The share amounts and prices shown below reflect adjustment for a 1-for-3 reverse stock split Schedule of stock-based compensation expense Three Months 2023 2022 Cost of Goods Sold $ 22,625 $ 6,298 Research and Development Expenses – 30,756 Selling, General and Administrative Expenses 86,121 37,936 $ 108,746 $ 74,990 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, 2023: Schedule of stock option activity Options Outstanding Number of Weighted Average Weighted Average Outstanding at June 30, 2023 1,127,140 $ 4.54 6.88 Exercised, Granted and Cancelled (4,000 ) 5.93 – Outstanding at September 30, 2023 1,023,140 $ 4.49 6.31 Information related to the stock options outstanding as of September 30, 2023 is as follows: The aggregate intrinsic value of the Company’s in-the-money outstanding and exercisable options as of September 30, 2023 was $ 1,810,767 1,810,242 |
REVENUE RECOGNITION
REVENUE RECOGNITION | 3 Months Ended |
Sep. 30, 2023 | |
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. Products and services are primarily transferred to customers at a point in time based upon when services are performed or product is shipped. Other selling costs to obtain and fulfill contracts are expensed as incurred due to the short-term nature of a majority of its contracts. 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 months ended September 30, 2023 and 2022: Schedule of disaggregation of revenues Three Months 2023 2022 Engineering Design Services $ 1,900,999 $ 1,642,967 Optical Components 1,903,311 2,652,681 Medical Device Products & Assemblies 516,945 789,653 $ 4,321,255 $ 5,085,301 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, 2023, 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 Ended September 30, 2023 2022 Contract liabilities, beginning of period $ 1,174,690 $ 905,113 Unearned revenue received from customers 433,119 455,613 Revenue recognized (182,826 ) (327,835 ) Contract liabilities, end of period $ 1,424,983 $ 1,032,891 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Sep. 30, 2023 | |
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 2024. 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, 2023, together with the Report of Independent Registered Public Accounting Firm filed under cover of the Company’s 2023 Annual Report on Form 10-K, filed with the Securities and Exchange Commission on September 28, 2023. |
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, 2023 and 2022, the following potentially dilutive securities outstanding have been excluded from the computations of weighted-average shares outstanding because such securities have an antidilutive impact due to the net loss reported during those periods. The following is the calculation of income (loss) per share for the three months ended September 30, 2023 and 2022: Schedule of income (loss) per share Three Months 2023 2022 Net Income (Loss) Basic and Fully Diluted $ (464,415 ) $ (158,724 ) Weighted Average Shares Outstanding Basic and Fully Diluted 6,066,518 5,638,363 Loss Per Share - Basic and Fully Diluted $ (0.08 ) $ (0.03 ) 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 1,123,140 904,667 |
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 such impairments of goodwill or patents have been estimated by management as of September 30, 2023. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of income (loss) per share | Schedule of income (loss) per share Three Months 2023 2022 Net Income (Loss) Basic and Fully Diluted $ (464,415 ) $ (158,724 ) Weighted Average Shares Outstanding Basic and Fully Diluted 6,066,518 5,638,363 Loss Per Share - Basic and Fully Diluted $ (0.08 ) $ (0.03 ) |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Schedule of inventories September 30, June 30, Raw Materials $ 1,375,717 $ 1,142,816 Work-In-Progress 326,846 322,538 Finished Goods 1,268,648 1,310,862 Total Inventories $ 2,971,211 $ 2,776,216 |
BANK FINANCING ACTIVITIES (Tabl
BANK FINANCING ACTIVITIES (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Schedule of long-term debt Amount Term Loan Note payable to Main Street Bank with monthly 30,952 7.0 October 15, 2028 $ 1,888,095 Permanent Working Capital Loan payable to Main Street Bank with monthly 12,500 8.625 June 15, 2028 $ 712,500 Less current maturities (513,259 ) Less debt issuance costs, net of accumulated amortization of $ 8,233 (39,671 ) Long-term debt, net of current maturities and debt issuance costs $ 2,047,665 |
Schedule of principal payments due on the term loan note payable | Schedule of principal payments due on the term loan note payable Fiscal Year Ending June 30: 2024 $ 384,944 2025 513,259 2026 513,259 2027 513,259 2028 513,259 Thereafter 162,615 Total long term debt $ 2,600,595 |
LEASE OBLIGATIONS (Tables)
LEASE OBLIGATIONS (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Lease Obligations | |
Schedule of minimum lease payments | Schedule of minimum lease payments Fiscal Year Ending June 30: Capital Leases Operating Lease 2024 $ 36,486 $ 127,204 2025 43,919 178,331 2026 28,004 11,548 2027 – – Total Minimum Payments 108,409 $ 317,083 Less: amount representing interest 7,280 Present value of minimum lease payments 101,129 Less: current portion 43,859 Lease Obligation, net of current portion $ 57,270 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of stock-based compensation expense | Schedule of stock-based compensation expense Three Months 2023 2022 Cost of Goods Sold $ 22,625 $ 6,298 Research and Development Expenses – 30,756 Selling, General and Administrative Expenses 86,121 37,936 $ 108,746 $ 74,990 |
Schedule of stock option activity | Schedule of stock option activity Options Outstanding Number of Weighted Average Weighted Average Outstanding at June 30, 2023 1,127,140 $ 4.54 6.88 Exercised, Granted and Cancelled (4,000 ) 5.93 – Outstanding at September 30, 2023 1,023,140 $ 4.49 6.31 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 3 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenues | Schedule of disaggregation of revenues Three Months 2023 2022 Engineering Design Services $ 1,900,999 $ 1,642,967 Optical Components 1,903,311 2,652,681 Medical Device Products & Assemblies 516,945 789,653 $ 4,321,255 $ 5,085,301 |
Schedule of contract liabilities | Schedule of contract liabilities Three Months Ended September 30, 2023 2022 Contract liabilities, beginning of period $ 1,174,690 $ 905,113 Unearned revenue received from customers 433,119 455,613 Revenue recognized (182,826 ) (327,835 ) Contract liabilities, end of period $ 1,424,983 $ 1,032,891 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details - Loss per share) - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Accounting Policies [Abstract] | ||
Net Income (Loss) Basic and Fully Diluted | $ (464,415) | $ (158,724) |
Weighted Average Shares Outstanding, Basic | 6,066,518 | 5,638,363 |
Weighted Average Shares Outstanding, Fully Diluted | 6,066,518 | 5,638,363 |
Loss Per Share - Basic | $ (0.08) | $ (0.03) |
Loss Per Share - Fully Diluted | $ (0.08) | $ (0.03) |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - shares | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Accounting Policies [Abstract] | ||
Antidilutive shares | 1,123,140 | 904,667 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 |
Inventory Disclosure [Abstract] | ||
Raw Materials | $ 1,375,717 | $ 1,142,816 |
Work-In-Progress | 326,846 | 322,538 |
Finished Goods | 1,268,648 | 1,310,862 |
Total Inventories | $ 2,971,211 | $ 2,776,216 |
BANK FINANCING ACTIVITIES (Det
BANK FINANCING ACTIVITIES (Details-Long term debt) - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Jun. 30, 2023 | |
Debt Instrument [Line Items] | ||
Less current maturities | $ (513,259) | $ (513,259) |
Accumulated amortization of debt issuance costs | 8,233 | |
Less debt issuance costs, net of accumulated amortization | (39,671) | |
Long-term debt, net of current maturities and debt issuance costs | $ 2,047,665 | $ 2,175,980 |
Term Loan Note Payable To Main Street Bank [Member] | ||
Debt Instrument [Line Items] | ||
Periodic payment | monthly | |
Debt instrument periodic payment | $ 30,952 | |
Interest rate | 7% | |
Maturity period | Oct. 15, 2028 | |
Term loan note payable | $ 1,888,095 | |
Permanent Working Capital Loan Payable To Main Street Bank [Member] | ||
Debt Instrument [Line Items] | ||
Periodic payment | monthly | |
Debt instrument periodic payment | $ 12,500 | |
Interest rate | 8.625% | |
Maturity period | Jun. 15, 2028 | |
Term loan note payable | $ 712,500 |
BANK FINANCING ACTIVITIES (D_2
BANK FINANCING ACTIVITIES (Details-PRINCIPAL PAYMENT) | Sep. 30, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2024 | $ 384,944 |
2025 | 513,259 |
2026 | 513,259 |
2027 | 513,259 |
2028 | 513,259 |
Thereafter | 162,615 |
Total long term debt | $ 2,600,595 |
BANK FINANCING ACTIVITIES (Deta
BANK FINANCING ACTIVITIES (Details Narrative) - Main Street Bank [Member] - USD ($) | Sep. 30, 2023 | Oct. 04, 2021 |
Debt Instrument [Line Items] | ||
Term Loan | $ 2,600,000 | |
Revolving line of credit | $ 1,250,000 | $ 250,000 |
LEASE OBLIGATIONS (Details)
LEASE OBLIGATIONS (Details) - USD ($) | Sep. 30, 2023 | Jun. 30, 2023 |
Operating lease, Total minimum payments | $ 79,740 | |
Capital leases, Less: current portion | 43,859 | $ 43,209 |
Capital lease obligation, net of current portion | 57,270 | $ 68,482 |
Operating Lease [Member] | ||
Operating lease, 2024 | 127,204 | |
Operating lease, 2025 | 178,331 | |
Operating lease, 2026 | 11,548 | |
Operating lease, 2027 | 0 | |
Operating lease, Total minimum payments | 317,083 | |
Capital Lease Obligations [Member] | ||
Capital leases, 2024 | 36,486 | |
Capital leases, 2025 | 43,919 | |
Capital leases, 2026 | 28,004 | |
Capital leases, 2027 | 0 | |
Capital leases,Total minimum payments | 108,409 | |
Capital leases, Less: amount representing interest | 7,280 | |
Capital leases, Present value of minimum lease payments | 101,129 | |
Capital leases, Less: current portion | 43,859 | |
Capital lease obligation, net of current portion | $ 57,270 |
LEASE OBLIGATIONS (Details Narr
LEASE OBLIGATIONS (Details Narrative) - USD ($) | 3 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Mar. 31, 2021 | Jan. 31, 2020 | |
Net book value of fixed assets under capital lease obligations | $ 42,572 | ||||
Lease payments | 79,740 | ||||
Right-of-use asset | 317,083 | $ 358,437 | |||
Current right-of-use operating lease liabilities | 171,075 | ||||
Long-term right-of-use operating lease liabilities | 146,008 | $ 189,760 | |||
El Paso Texas [Member] | |||||
Operating lease expense | 15,973 | $ 11,630 | |||
Windham Maine [Member] | |||||
Lease payments | 252,501 | ||||
Windham Maine Lease [Member] | |||||
Operating lease expense | 34,432 | ||||
Gardner Ma [Member] | |||||
Operating lease expense | $ 48,799 | $ 50,826 | |||
Manufacturing Equipment [Member] | |||||
Capital lease obligation | $ 161,977 | $ 47,750 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details - Stock based compensation) - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Stock based compensation expense | $ 108,746 | $ 74,990 |
Cost of Sales [Member] | ||
Stock based compensation expense | 22,625 | 6,298 |
Research and Development Expense [Member] | ||
Stock based compensation expense | 0 | 30,756 |
Selling, General and Administrative Expenses [Member] | ||
Stock based compensation expense | $ 86,121 | $ 37,936 |
STOCK-BASED COMPENSATION (Det_2
STOCK-BASED COMPENSATION (Details - Option activity) - Equity Option [Member] | 3 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number of stock options outstanding - at beginning | shares | 1,127,140 |
Weighted average exercise price options outstanding- at beginning | $ / shares | $ 4.54 |
Weighted average contractual life, beginning | 6 years 10 months 17 days |
Number of options exercised | shares | (4,000) |
Number of options granted | shares | (4,000) |
Number of options cancelled | shares | (4,000) |
Weighted average exercise price - exercised | $ / shares | $ 5.93 |
Weighted average exercise price - grants | $ / shares | 5.93 |
Weighted average exercise price - cancelled | $ / shares | $ 5.93 |
Number of stock options outstanding - at ending | shares | 1,023,140 |
Weighted average exercise price options outstanding- at ending | $ / shares | $ 4.49 |
Weighted average contractual life, ending | 6 years 3 months 21 days |
STOCK-BASED COMPENSATION (Det_3
STOCK-BASED COMPENSATION (Details Narrative) - USD ($) | Nov. 01, 2022 | Sep. 30, 2023 |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Reverse stock split | 1-for-3 reverse stock split | |
Equity Option [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||
Aggregate intrinsic value of outstanding | $ 1,810,767 | |
Aggregate intrinsic value of exercisable | $ 1,810,242 |
REVENUE RECOGNITION (Details -
REVENUE RECOGNITION (Details - Revenues) - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 4,321,255 | $ 5,085,301 |
Engineering Design Services [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,900,999 | 1,642,967 |
Optical Components [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,903,311 | 2,652,681 |
Medical Device Products & Assemblies [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 516,945 | $ 789,653 |
REVENUE RECOGNITION (Details _2
REVENUE RECOGNITION (Details - Contract liabilities) - USD ($) | 3 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Contract liabilities, beginning of period | $ 1,174,690 | $ 905,113 |
Unearned revenue received from customers | 433,119 | 455,613 |
Revenue recognized | (182,826) | (327,835) |
Contract liabilities, end of period | $ 1,424,983 | $ 1,032,891 |