Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Sep. 07, 2021 | Dec. 31, 2020 | |
Document And Entity Information | |||
Entity Registrant Name | LIGHTPATH TECHNOLOGIES INC | ||
Entity Central Index Key | 0000889971 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2021 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --06-30 | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Is Entity's Reporting Status Current? | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 26,994,534 | ||
Entity Public Float | $ 76,925,641 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Entity Interactive Data Current | Yes | ||
Entity Incorporation State Country Code | DE | ||
Entity File Number | 000-27548 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 6,774,694 | $ 5,387,388 |
Trade accounts receivable, net of allowance of $9,917 and $29,406 | 4,656,354 | 6,188,726 |
Inventories, net | 8,659,587 | 8,984,482 |
Other receivables | 137,103 | 132,051 |
Prepaid expenses and other assets | 475,364 | 565,181 |
Total current assets | 20,703,102 | 21,257,828 |
Property and equipment, net | 13,279,867 | 11,799,061 |
Operating lease right-of-use assets | 9,015,498 | 1,220,430 |
Intangible assets, net | 5,582,881 | 6,707,964 |
Goodwill | 5,854,905 | 5,854,905 |
Deferred tax assets | 147,000 | 659,000 |
Other assets | 27,737 | 75,730 |
Total assets | 54,610,990 | 47,574,918 |
Current liabilities: | ||
Accounts payable | 2,924,333 | 2,558,638 |
Accrued liabilities | 1,067,265 | 992,221 |
Accrued payroll and benefits | 2,810,043 | 1,827,740 |
Operating lease liabilities, current | 799,507 | 765,422 |
Loan payable, current portion | 634,846 | 981,350 |
Finance lease obligation, current portion | 212,212 | 278,040 |
Total current liabilities | 8,448,206 | 7,403,411 |
Finance lease obligation, less current portion | 66,801 | 279,435 |
Operating lease liabilities, noncurrent | 8,461,133 | 887,766 |
Loan payable, less current portion | 4,057,365 | 4,437,365 |
Total liabilities | 21,033,505 | 13,007,977 |
Stockholders' equity: | ||
Preferred stock: Series D, $.01 par value, voting; 500,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock: Class A, $.01 par value, voting; 44,500,000 shares authorized; 26,985,913 and 25,891,885 shares issued and outstanding | 269,859 | 258,919 |
Additional paid-in capital | 231,438,651 | 230,634,056 |
Accumulated other comprehensive income | 2,116,152 | 735,892 |
Accumulated deficit | (200,247,177) | (197,061,926) |
Total stockholders' equity | 33,577,485 | 34,566,941 |
Total liabilities and stockholders' equity | $ 54,610,990 | $ 47,574,918 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful trade accounts receivable | $ 45,643 | $ 9,917 |
Preferred stock: Series D, par value | $ 0.01 | $ 0.01 |
Preferred stock: Series D, shares authorized | 500,000 | 500,000 |
Preferred stock: Series D, shares issued | 0 | 0 |
Preferred stock: Series D, shares outstanding | 0 | 0 |
Common stock: Class A, par value | $ 0.01 | $ 0.01 |
Common stock: Class A, shares authorized | 44,500,000 | 44,500,000 |
Common stock: Class A, shares issued | 26,985,913 | 25,891,885 |
Common stock: Class A, shares outstanding | 26,985,913 | 25,891,885 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Revenues, net | $ 38,464,821 | $ 34,967,963 |
Cost of sales | 25,017,051 | 21,125,464 |
Gross margin | 13,447,770 | 13,842,499 |
Operating expenses: | ||
Selling, general and administrative | 11,989,597 | 8,961,150 |
New product development | 2,165,951 | 1,714,077 |
Amortization of intangibles | 1,125,083 | 1,129,341 |
Gain on disposal of property and equipment | 8,951 | (107,280) |
Total operating costs | 15,289,582 | 11,697,288 |
Operating income (loss) | (1,841,812) | 2,145,211 |
Other income (expense): | ||
Interest expense, net | (215,354) | (339,446) |
Other income, net | (194,170) | (174,838) |
Total other expense, net | (409,524) | (514,284) |
Income (loss) before income taxes | (2,251,336) | 1,630,927 |
Income tax provision | 933,915 | 763,998 |
Net income (loss) | (3,185,251) | 866,929 |
Foreign currency translation adjustment | 1,380,260 | (72,626) |
Comprehensive income (loss) | $ (1,804,991) | $ 794,303 |
Earnings (loss) per common share (basic) | $ (.12) | $ 0.03 |
Number of shares used in per share calculation (basic) | 26,314,025 | 25,853,419 |
Earnings (loss) per common share (diluted) | $ (.12) | $ 0.03 |
Number of shares used in per share calculation (diluted) | 26,314,025 | 27,469,845 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) | Class A Common Shares | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Total |
Balance, beginning, shares at Jun. 30, 2019 | 25,813,895 | ||||
Balance, beginning at Jun. 30, 2019 | $ 258,139 | $ 230,321,324 | $ 808,518 | $ (197,928,855) | $ 33,459,126 |
Issuance of common stock for: | |||||
Employee Stock Purchase Plan, shares | 30,537 | ||||
Employee Stock Purchase Plan | $ 305 | 24,307 | $ 24,612 | ||
Exercise of stock options, shares | 29,356 | ||||
Exercise of stock options & RSU's shares | 42,453 | ||||
Exercise of stock options & RSU's | $ 425 | 21,838 | $ 22,263 | ||
Shares issued as compensation, shares | 5,000 | ||||
Shares issued as compensation | $ 50 | 6,100 | 6,150 | ||
Stock-based compensation on stock options and RSUs | 260,487 | 260,487 | |||
Foreign currency translation adjustment | (72,626) | (72,626) | |||
Net income | 866,929 | 866,929 | |||
Balance, ending, shares at Jun. 30, 2020 | 25,891,885 | ||||
Balance, ending at Jun. 30, 2020 | $ 258,919 | 230,634,056 | 735,892 | (197,061,926) | 34,566,941 |
Issuance of common stock for: | |||||
Employee Stock Purchase Plan, shares | 8,145 | ||||
Employee Stock Purchase Plan | $ 81 | 29,897 | $ 29,897 | ||
Exercise of stock options, shares | 225,137 | ||||
Exercise of stock options & RSU's shares | 1,085,883 | ||||
Exercise of stock options & RSU's | $ 10,859 | 131,833 | $ 142,692 | ||
Stock-based compensation on stock options and RSUs | 642,865 | 642,865 | |||
Foreign currency translation adjustment | 1,380,260 | 1,380,260 | |||
Net income | (3,185,251) | ||||
Balance, ending, shares at Jun. 30, 2021 | 26,985,913 | ||||
Balance, ending at Jun. 30, 2021 | $ 269,859 | $ 231,438,651 | $ 2,116,152 | $ (200,247,177) | $ 33,577,485 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities | ||
Net (loss) income | $ (3,185,251) | $ 866,929 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization | 3,509,436 | 3,424,438 |
Interest from amortization of debt costs | 18,572 | 18,572 |
Gain on disposal of property and equipment | 8,951 | (107,280) |
Stock-based compensation on stock options & RSUs, net | 642,865 | 250,737 |
Provision for doubtful accounts receivable | (35,799) | 18,826 |
Change in operating lease liabilities | (187,616) | (157,757) |
Inventory write-offs to allowance | 157,399 | 127,872 |
Deferred tax benefit | 512,000 | (7,000) |
Changes in operating assets and liabilities: | ||
Trade accounts receivables | 1,568,171 | 3,279 |
Other receivables | (5,052) | 221,644 |
Inventories | 167,496 | (1,427,827) |
Prepaid expenses and other assets | 137,810 | 403,220 |
Accounts payable and accrued liabilities | 1,423,042 | 97,160 |
Net cash provided by operating activities | 4,732,024 | 3,732,813 |
Cash flows from investing activities | ||
Purchase of property and equipment | (3,158,784) | (2,442,779) |
Proceeds from sale of equipment | 0 | 186,986 |
Net cash used in investing activities | (3,158,784) | (2,255,793) |
Cash flows from financing activities | ||
Proceeds from exercise of stock options | 142,692 | 22,263 |
Proceeds from sale of common stock from employee stock purchase plan | 29,978 | 24,612 |
Borrowings on loan payable | 275,377 | 400,000 |
Payments on loan payable | (1,013,014) | (581,350) |
Repayment of finance lease obligations | (278,462) | (487,233) |
Net cash used in financing activities | (843,429) | (621,708) |
Effect of exchange rate on cash and cash equivalents | 657,495 | (72,625) |
Change in cash and cash equivalents and restricted cash | 1,387,306 | 782,687 |
Cash and cash equivalents and restricted cash, beginning of period | 5,387,388 | 4,604,701 |
Cash and cash equivalents, end of period | 6,774,694 | 5,387,388 |
Supplemental disclosure of cash flow information: | ||
Interest paid in cash | 199,524 | 330,910 |
Income taxes paid | $ 1,054,232 | $ 526,225 |
Organization and History
Organization and History | 12 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and History | LightPath Technologies, Inc. (“LightPath”, the “Company”, “we”, “us” or “our”) was incorporated in Delaware in 1992. It was the successor to LightPath Technologies Limited Partnership formed in 1989, and its predecessor, Integrated Solar Technologies Corporation formed in 1985. The Company completed its initial public offering during fiscal 1996. On April 14, 2000, the Company acquired Horizon Photonics, Inc. (“Horizon”). On September 20, 2000, the Company acquired Geltech, Inc. (“Geltech”). In November 2005, we formed LightPath Optical Instrumentation (Shanghai) Co., Ltd (“LPOI”), a wholly-owned subsidiary located in Jiading, People’s Republic of China. In December 2013, we formed LightPath Optical Instrumentation (Zhenjiang) Co., Ltd (“LPOIZ”), a wholly-owned subsidiary located in Zhenjiang, Jiangsu Province, People’s Republic of China. In December 2016, we acquired ISP Optics Corporation, a New York corporation (“ISP”), and its wholly-owned subsidiary, ISP Optics Latvia, SIA, a limited liability company founded in 1998 under the Laws of the Republic of Latvia (“ISP Latvia”). LightPath is a manufacturer of optical components and higher-level assemblies, including precision molded glass aspheric optics, molded and diamond-turned infrared aspheric lenses, and other optical components used to produce products that manipulate light. LightPath designs, develops, manufactures, and distributes optical components and assemblies utilizing advanced optical manufacturing processes. LightPath products are incorporated into a variety of applications by customers in many industries, including defense products, medical devices, laser aided industrial tools, automotive safety applications, barcode scanners, optical data storage, hybrid fiber coax datacom, telecommunications, machine vision and sensors, among others. As used herein, the terms “LightPath,” the “Company,” “we,” “us” or “our,” refer to LightPath individually or, as the context requires, collectively with its subsidiaries on a consolidated basis. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Consolidated Financial Statements Management estimates. Cash and cash equivalents Allowance for accounts receivable Inventories, Property and equipment Long-lived assets Goodwill and Intangible Assets The Company will assess the qualitative factors to determine whether it is more likely than not that the fair value of its reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the goodwill impairment analysis. If the Company determines that it is more likely than not that its fair value is less than its carrying amount, then the goodwill impairment test is performed. The first step, identifying a potential impairment, compares the fair value of the reporting unit with its carrying amount. If the carrying amount exceeds its fair value, the second step would need to be performed; otherwise, no further steps are required. The second step, measuring the impairment loss, compares the implied fair value of the goodwill with the carrying amount of the goodwill. Any excess of the goodwill carrying amount over the implied fair value is recognized as an impairment loss, and the carrying value of goodwill is written down to fair value. The Company did not record any goodwill impairment during the fiscal years ended June 30, 2021 or 2020. Leases. Leases (Topic 842) Leases Income taxes The Company has not recognized a liability for uncertain tax positions. A reconciliation of the beginning and ending amount of unrecognized tax benefits or penalties has not been provided since there has been no unrecognized benefit or penalty. If there were an unrecognized tax benefit or penalty, the Company would recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. The Company files United States (“U.S.”) Federal income tax returns, as well as tax returns in various states and foreign jurisdictions. Open tax years subject to examination by the Internal Revenue Service generally remain open for three years from the filing date. Tax years subject to examination by the state jurisdictions generally remain open for up to four years from the filing date. In Latvia, tax years subject to examination remain open for up to five years from the filing date and, in China, tax years subject to examination remain open for up to ten years from the filing date. Our cash, cash equivalents totaled approximately $6.8 million at June 30, 2021. Of this amount, greater than 50% was held by our foreign subsidiaries in China and Latvia. These foreign funds were generated in China and Latvia as a result of foreign earnings. Historically, we considered unremitted earnings held by our foreign subsidiaries to be permanently reinvested. However, during fiscal 2020, we began declaring intercompany dividends to remit a portion of the earnings of our foreign subsidiaries to the U.S. parent company. It is still our intent to reinvest a significant portion of earnings generated by our foreign subsidiaries, however we also plan to repatriate a portion of their earnings. With respect to the funds generated by our foreign subsidiaries in China, the retained earnings of the legal entity must equal at least 50% of the registered capital before any funds can be repatriated. During fiscal 2021 and 2020, we repatriated approximately $4 million and $2 million, respectively, from LPOIZ. Based on retained earnings as of December 31, 2020, the end of the most recent statutory tax year, LPOIZ had an additional $5.6 million available and LPOIZ did not have any funds available for repatriation. Based on our previous intent, we had not historically provided for future Chinese withholding taxes on the related earnings. However, during fiscal 2020 we began to accrue for these taxes on the portion of earnings that we intend to repatriate. As of June 30, 2021, withholding taxes of $100,000 have been accrued related to future dividends. Beginning in fiscal 2019, earnings from the Company’s non-U.S. subsidiaries were subject to the global intangible low-taxed income Income Taxes Revenue recognition Revenue VAT New product development Stock-based compensation Fair value of financial instruments. Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable. Level 3 - Unobservable inputs that are supported by little or no market activity, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values. These financial instruments include accounts receivable, accounts payable and accrued liabilities. Fair values were assumed to approximate carrying values for these financial instruments since they are short term in nature and their carrying amounts approximate fair values or they are receivable or payable on demand. The fair value of the Company’s finance lease obligations and loans payable approximate their carrying values, based upon current rates available to us. See Note 17, Loans Payable The Company does not have any other financial or non-financial assets or liabilities that would be characterized as Level 1, Level 2 or Level 3 instruments. Debt issuance costs Comprehensive income Business segments. Recent accounting pronouncements. In December 2019, the FASB issued Accounting Standards Update (“ASU”) 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” The amendments in this update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify U.S. GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business entities, the amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. This ASU will be effective for the Company in the first quarter of fiscal year 2022. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this update on its Consolidated Financial Statements. No other new accounting pronouncement recently issued or newly effective had or is expected to have a material impact on the Consolidated Financial Statements. |
Revenue
Revenue | 12 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Product Revenue The Company manufactures optical components and higher-level assemblies, including precision molded glass aspheric optics, molded and diamond-turned infrared aspheric lenses, and other optical components used to produce products that manipulate light. The Company designs, develops, manufactures, and distributes optical components and assemblies utilizing advanced optical manufacturing processes. The Company also performs research and development for optical solutions for a wide range of optics markets. Revenue is derived primarily from the sale of optical components and assemblies. Revenue Recognition Revenue is generally recognized upon transfer of control, including the risks and rewards of ownership, of products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company generally bears all costs, risk of loss, or damage and retains title to the goods up to the point of transfer of control of products to customers. Shipping and handling costs are included in the cost of goods sold. Revenue is presented net of sales taxes and any similar assessments. Customary payment terms are granted to customers, based on credit evaluations. The Company does not have any contracts where revenue is recognized, but the customer payment is contingent on a future event. Deferred revenue is recorded when cash payments are received or due in advance of the Company’s performance. Deferred revenue was not significant as of June 30, 2021 and 2020. Nature of Products Revenue from the sale of optical components and assemblies is recognized upon transfer of control, including the risks and rewards of ownership, to the customer. The performance obligations for the sale of optical components and assemblies are satisfied at a point in time. Product development agreements are generally short term in nature, with revenue recognized upon satisfaction of the performance obligation, and transfer of control of the agreed-upon deliverable. The Company has organized its products in three groups: precision molded optics (“PMO”), infrared, and specialty products. Revenues from product development agreements are included in specialty products. The Company’s revenue by product group for the years ended June 30, 2021 and 2020 was as follows: Year Ended June 30, 2021 2020 PMO $ 15,882,189 $ 14,639,687 Infrared Products 20,971,080 18,052,856 Specialty Products 1,611,552 2,275,420 Total revenue $ 38,464,821 $ 34,967,963 |
Inventories, net
Inventories, net | 12 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories, net | The components of inventories include the following: June 30, 2021 June 30, 2020 Raw materials $ 3,908,630 $ 3,876,955 Work in process 2,473,070 2,989,070 Finished goods 3,467,105 3,134,800 Allowance for obsolescence (1,189,218 ) (1,016,343 ) $ 8,659,587 $ 8,984,482 During fiscal 2021 and 2020, the Company evaluated all allowed items and disposed of approximately $157,000 and $128,000, respectively, of inventory parts and wrote them off against the allowance for obsolescence. The value of tooling in raw materials, net of the related allowance for obsolescence, was approximately $2.0 million and $2.3 million at June 30, 2021 and 2020, respectively. |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and equipment consist of the following: Estimated June 30, June 30, Lives (Years) 2021 2020 Manufacturing equipment 5 - 10 $ 21,465,402 $ 18,444,448 Computer equipment and software 3 - 5 918,679 801,625 Furniture and fixtures 5 362,944 321,418 Leasehold improvements 5 - 7 2,944,543 2,171,388 Construction in progress 1,529,452 1,274,880 Total property and equipment 27,221,020 23,013,759 Less accumulated depreciation and amortization (13,941,153 ) (11,214,698 ) Total property and equipment, net $ 13,279,867 $ 11,799,061 During fiscal 2015, the Company extended the term of its Orlando lease and received a tenant improvement allowance from the landlord of $420,014. During fiscal 2019, the Company received a tenant improvement allowance from the landlord related to the new portion of the Orlando facility in the amount of $309,450. These allowances were used to construct improvements and were initially recorded as leasehold improvements and deferred rent liability. The balances are being amortized over the corresponding lease terms, and are included in leasehold improvements and operating lease liabilities as of June 30, 2021 and 2020. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | In connection with the December 2016 acquisition of ISP, the Company identified intangible assets, which were recorded at fair value and are being amortized on a straight-line basis over their useful lives. The excess purchase price over the fair values of all identified assets and liabilities was recorded as goodwill, attributable primarily to expected synergies and the assembled workforce of ISP. There were no changes in the net carrying value of goodwill during the years ended June 30, 2021 and 2020, and there have been no events or changes in circumstances that indicate the carrying value of goodwill may not be recoverable. Identifiable intangible assets were comprised of: Useful Lives (Years) June 30, 2021 June 30, 2020 Customer relationships 15 $ 3,590,000 $ 3,590,000 Trade secrets 8 3,272,000 3,272,000 Trademarks 8 3,814,000 3,814,000 Total intangible assets 10,676,000 10,676,000 Less accumulated amortization (5,093,119 ) (3,968,036 ) Total intangible assets, net $ 5,582,881 $ 6,707,964 Future amortization of identifiable intangibles is as follows: Fiscal year ending: June 30, 2022 1,125,083 June 30, 2023 1,125,083 June 30, 2024 1,125,083 June 30, 2025 658,398 After June 30, 2025 1,549,234 $ 5,582,881 |
Accounts Payable
Accounts Payable | 12 Months Ended |
Jun. 30, 2021 | |
Accounts Payable [Abstract] | |
Accounts Payable | The accounts payable balances as of June 30, 2021 and 2020 include earned but unpaid Board of Directors’ fees of approximately $99,500 and $91,000, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jun. 30, 2021 | |
Stockholders' equity: | |
Stockholders' Equity | The Company’s authorized capital stock consists of 55,000,000 shares, comprised of 50,000,000 shares of common stock, par value $0.01 per share, and 5,000,000 shares of preferred stock, par value $0.01 per share. Of the 5,000,000 shares of preferred stock authorized, the board of directors has previously designated: ● 250 shares of preferred stock as Series A Preferred Stock, all previously outstanding shares of which have been previously redeemed or converted into shares of our Class A common stock and may not be reissued; ● 300 shares of preferred stock as Series B Preferred Stock, all previously outstanding shares of which have been previously redeemed or converted into shares of our Class A common stock and may not be reissued; ● 500 shares of preferred stock as Series C Preferred Stock, all previously outstanding shares of which have been previously redeemed or converted into shares of our Class A common stock and may not be reissued; ● 500,000 shares of preferred stock as Series D Preferred Stock, none of which have been issued; and ● 500 shares of our preferred stock as Series F Preferred Stock, all previously outstanding shares of which have been previously redeemed or converted into shares of our Class A common stock and may not be reissued. Of the 50,000,000 shares of common stock authorized, the board of directors has previously designated 44,500,000 shares authorized as Class A common stock. The stockholders of Class A common stock are entitled to one vote for each share held. The remaining 5,500,000 shares of authorized common stock were designated as Class E-1 common stock, Class E-2 common stock, or Class E-3 common stock, all previously outstanding shares of which have been previously redeemed or converted into shares of Class A common stock. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | For financial reporting purposes, income before income taxes includes the following components: Year Ended June 30, 2021 2020 Pretax income (loss): United States $ (5,265,813 ) $ (3,739,527 ) Foreign 3,014,477 5,370,454 Income (loss) before income taxes $ (2,251,336 ) $ 1,630,927 The components of the provision for income taxes are as follows: Year Ended June 30, 2021 2020 Current: Federal tax $ - $ - State 18,563 3,047 Foreign 403,352 767,951 Total current 421,915 770,998 Deferred: Federal tax 510,069 4,931 State 1,931 (11,931 ) Foreign - - Total deferred 512,000 (7,000 ) Total income tax provision $ 933,915 $ 763,998 The reconciliation of income tax computed at the U.S. federal statutory rates to the total income tax provision is as follows: Year Ended June 30, 2021 2020 U.S. federal statutory tax rate 21.0 % 21.0 % Income tax provision reconciliation: Tax at statutory rate: $ (472,782 ) $ 342,495 Net foreign income subject to lower tax rate (169,276 ) (497,959 ) State income taxes, net of federal benefit (196,719 ) (75,415 ) Valuation allowance (1,400,450 ) 344,793 NOL expiration and adjustments 3,516,695 (206,807 ) GILTI 310,431 835,101 Federal research and development and other credits (74,288 ) (71,962 ) Stock-based compensation (265,485 ) - Other permanent differences (67,893 ) (183,367 ) Other, net (246,318 ) 277,119 $ 933,915 $ 763,998 On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law, which, among other things, is intended to provide emergency assistance to qualifying businesses and individuals. The CARES Act also suspends the limitation on the deduction of NOLs arising in taxable years beginning before January 1, 2021, permits a five-year carryback of NOLs arising in taxable years beginning after December 31, 2017 and before January 1, 2021, and generally modifies the limitation on the deduction for net interest expense to 50% of adjusted taxable income for taxable years beginning in 2019 and 2020. During fiscal 2020, as a result of the CARES Act, the Company was able to accelerate the recovery of an income tax receivable related to previously paid alternative minimum tax. The receivable amount of approximately $107,000 as of June 30, 2020 was collected in July 2020. In addition, the Company elected to utilize the payroll tax deferral under the CARES Act, resulting in cash savings of approximately $325,000, accrued as of June 30, 2021 and deferred until at least December 31, 2021. Income Tax Law of the People’s Republic of China The Company’s Chinese subsidiaries, LPOI and LPOIZ, are governed by the Income Tax Law of the People’s Republic of China concerning the privately run and foreign invested enterprises, which are generally subject to tax at a statutory rate of 25% on income reported in the statutory financial statements after appropriate tax adjustments. For both the years ended June 30, 2021 and 2020, the tax rate for LPOIZ was 15%, in accordance with an incentive program for technology companies. No deferred tax provision has been recorded for China, as the effect is deemed de minimis. The Company declared an intercompany dividends of $4 million and $2 million, respectively, from LPOIZ, payable to the Company as its parent company. Accordingly, the Company accrued and paid Chinese withholding taxes of $400,000 and $200,000 associated with the dividend during fiscal 2021 and 2020, respectively. Other than these withholding taxes, this intercompany dividend has no impact on the Consolidated Financial Statements. As of June 30, 2021, the Company has accrued a further $100,000 of withholding taxes related to future dividends. Historically, the Company considered unremitted earnings held by its foreign subsidiaries to be permanently reinvested. However, during fiscal 2020, the Company began declaring intercompany dividends to remit a portion of the historical earnings of its foreign subsidiaries to the U.S. parent company. It is still the Company’s intent to reinvest a significant portion of the more recent earnings generated by its foreign subsidiaries, however the Company also plans to repatriate a portion of the historical earnings of its subsidiaries. Based on its previous intent, the Company had not historically provided for future Chinese withholding taxes on the related earnings. However, during fiscal 2020 the Company began to accrue for these taxes on the portion of historical earnings that it intends to repatriate. Law of Corporate Income Tax of Latvia The Company’s Latvian subsidiary, ISP Latvia, is governed by the Law of Corporate Income Tax of Latvia. Until December 31, 2017, ISP Latvia was subject to a statutory income tax rate of 15%. Effective January 1, 2018, the Republic of Latvia enacted tax reform with the following key provisions: (i) corporations are no longer subject to income tax, but are instead subject to a distribution tax on distributed profits (or deemed distributions, as defined), and (ii) the tax rate was changed to 20%; however, distribution amounts are first divided by 0.8 to arrive at the taxable amount of profit, resulting in an effective tax rate of 25%. As a transitional measure, distributions made from earnings prior to January 1, 2018, distributed prior to December 31, 2019, are not subject to tax if declared prior to December 31, 2019. ISP Latvia has declared an intercompany dividend to be paid to ISP, its U.S. parent company, for the full amount of earnings accumulated prior to January 1, 2018. Distributions of this dividend will be from earnings prior to January 1, 2018 and, therefore, will not be subject to tax. The Company currently does not intend to distribute any current earnings generated after January 1, 2018. If, in the future, the Company changes such intention, distribution taxes, if any, will be accrued as profits are generated. The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities are as follows at June 30: Year Ended June 30, 2021 2020 Deferred tax assets: Net operating loss carryforwards $ 13,585,000 $ 16,039,000 Stock-based compensation 563,000 868,000 R&D and other credits 2,177,000 2,108,000 Capitalized R&D expenses 564,000 487,000 Inventories 253,000 218,000 Accrued expenses and other 347,000 99,000 Gross deferred tax assets 17,489,000 19,819,000 Valuation allowance for deferred tax assets (15,644,000 ) (17,044,000 ) Total deferred tax assets 1,845,000 2,775,000 Deferred tax liabilities: Depreciation and other (255,000 ) (390,000 ) Intangible assets (1,443,000 ) (1,726,000 ) Total deferred tax liabilities (1,698,000 ) (2,116,000 ) Net deferred tax assets $ 147,000 $ 659,000 As of June 30, 2019, the Company has also recorded a non-current income tax receivable of $214,000 related to previously paid alternative minimum tax that is expected to be recovered within the next five years pursuant to certain provisions of the TCJA. During fiscal 2020, approximately $107,000 of this receivable was collected, and the balance was reclassified to other receivables, current, and subsequently collected in July 2020. No balance remains as of June 30, 2021. In assessing the potential future recognition of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. In order to fully realize the deferred tax asset, the Company will need to generate future taxable income of approximately $61 million prior to the expiration of NOL carry-forwards from 2022 through 2034. Based on the level of historical taxable income, management has provided for a valuation adjustment against the deferred tax assets of $15,644,000 at June 30, 2021, a decrease of approximately $1.4 million as compared to June 30, 2020. The increase in the valuation allowance for deferred tax assets as compared to the prior year is primarily the result of the various movements in the current year deferred items. The net deferred tax asset of $147,000 results from federal and state tax credits with indefinite carryover periods. State income tax expense disclosed on the effective tax rate reconciliation above includes state deferred taxes that are offset by a full valuation allowance. At June 30, 2021, in addition to net operating loss carry forwards, the Company also has research and development credit carry forwards of approximately $2,177,000, which will expire from 2022 through 2039. A portion of the NOL carry forwards may be subject to certain limitations of the Internal Revenue Code Sections 382 and 383, which would restrict the annual utilization in future periods due principally to changes in ownership in prior periods. |
Compensatory Equity Incentive P
Compensatory Equity Incentive Plan and Other Equity Incentives | 12 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Compensatory Equity Incentive Plan and Other Equity Incentives | Share-based payment arrangements — The LightPath Technologies, Inc. Employee Stock Purchase Plan (“2014 ESPP”) was adopted by the Company’s board of directors on October 30, 2014 and approved by the Company’s stockholders on January 29, 2015. The 2014 ESPP permits employees to purchase Class A common stock through payroll deductions, which may not exceed 15% of an employee’s compensation, at a price not less than 85% of the market value of the Class A common stock on specified dates (June 30 and December 31). In no event can any participant purchase more than $25,000 worth of shares of Class A common stock in any calendar year and an employee cannot purchase more than 8,000 shares on any purchase date within an offering period of 12 months and 4,000 shares on any purchase date within an offering period of six months. This discount of approximately $3,000 and $2,500 for fiscal 2021 and 2020, respectively, is included in the selling, general and administrative expense in the accompanying Consolidated Statements Comprehensive Income (Loss), which represents the value of the 10% discount given to the employees purchasing stock under the 2014 ESPP. These plans are summarized below: Equity Compensation Arrangement Award Shares Authorized Outstanding at June 30, 2021 Available for Issuance at June 30, 2021 SICP (or Omnibus Plan) 5,115,625 2,194,812 829,786 2014 ESPP 400,000 — 298,455 5,515,625 2,194,812 1,128,241 Grant Date Fair Values and Underlying Assumptions; Contractual Terms— For stock options and RSUs granted in the years ended June 30, 2021 and 2020, the Company estimated the fair value of each stock award as of the date of grant using the following assumptions: Year Ended June 30, 2021 2020 Weighted-average expected volatility 72.0 % 65.9 % Dividend yields 0 % 0 % Weighted-average risk-free interest rate 0.74 % 1.47 % Weighted-average expected term, in years 7.49 7.49 The assumed forfeiture rates used in calculating the fair value of options and restricted stock unit grants with both performance and service conditions were 20% for each of the years ended June 30, 2021 and 2020. The volatility rate and expected term are based on seven-year historical trends in Class A common stock closing prices and actual forfeitures. The interest rate used is the U.S. Treasury interest rate for constant maturities. Information Regarding Current Share-Based Payment Awards — Stock Options Restricted Stock Units (RSUs) Weighted- Weighted- Weighted- Average Average Average Exercise Remaining Remaining Shares Price Contract Shares Contract June 30, 2019 979,925 $ 1.80 5.5 1,864,526 0.9 Granted 314,817 $ 1.60 9.6 484,000 2.4 Exercised (29,356 ) $ 1.35 (17,204 ) Cancelled/Forfeited (322,811 ) $ 2.08 (3,019 ) June 30, 2020 942,575 $ 1.65 6.5 2,328,303 0.9 Granted 121,933 $ 2.97 9.7 296,386 2.3 Exercised (225,137 ) $ 1.50 (862,804 ) Cancelled/Forfeited (406,444 ) $ 1.75 - June 30, 2021 432,927 $ 2.01 8.8 1,761,885 0.9 Awards exercisable/ vested as of June 30, 2021 110,943 $ 1.55 7.9 1,163,298 — Awards unexercisable/ unvested as of June 30, 2021 321,984 $ 2.17 9.1 598,587 0.9 432,927 1,761,885 The total intrinsic value of stock options exercised for the years ended June 30, 2021 and 2020 was approximately $344,000 and $35,000, respectively. The total intrinsic value of stock options outstanding and exercisable at June 30, 2021 and 2020 was approximately $285,000 and $1.2 million, respectively. The total fair value of stock options vested during the years ended June 30, 2021 and 2020 was approximately $142,000 and $94,000, respectively. The total intrinsic value of RSUs exercised during the years ended June 30, 2021 and 2020 was approximately $2.8 million and $12,000, respectively. The total intrinsic value of RSUs outstanding and exercisable at June 30, 2021 and 2020 was approximately $3.0 million and $5.5 million, respectively. The total fair value of RSUs vested during the years ended June 30, 2021 and 2020 was approximately $1.1 million and $443,000, respectively. As of June 30, 2021, there was approximately $1.1 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements, including share options and RSUs, granted under the Omnibus Plan, through October 2018 and after that date, the SICP. The expected compensation cost to be recognized is as follows: Fiscal Year Ending: Stock Options RSUs Total June 30, 2022 $ 110,128 $ 312,766 $ 422,894 June 30, 2023 116,986 258,592 375,578 June 30, 2024 94,516 132,045 226,561 June 30, 2025 33,885 34,707 68,592 $ 355,515 $ 738,110 $ 1,093,625 The table above does not include shares under the Company’s 2014 ESPP, which has purchase settlement dates in the second and fourth fiscal quarters. RSU awards vest immediately or up to four years from the grant date. The Company issues new shares of Class A common stock upon the exercise of stock options. The following table is a summary of the number and weighted-average grant date fair values, estimated using the Black-Scholes-Merton pricing model, regarding the Company’s unexercisable/unvested awards as of June 30, 2021 and 2020 and changes during the two years then ended: Unexercisable/Unvested Awards Stock Options Shares RSU Shares Total Shares Weighted-Average Grant Date Fair Values (per share) June 30, 2019 110,695 400,144 510,839 $ 2.09 Granted 314,817 484,000 798,817 $ 0.79 Vested (99,151 ) (203,147 ) (302,298 ) $ 1.78 Cancelled/Forfeited (60,079 ) (11,471 ) (71,550 ) $ 2.70 June 30, 2020 266,282 669,526 935,808 $ 1.10 Granted 121,933 296,386 418,319 $ 2.48 Vested (64,636 ) (367,325 ) (431,961 ) $ 1.39 Cancelled/Forfeited (1,595 ) - (1,595 ) $ 2.85 June 30, 2021 321,984 598,587 920,571 $ 1.59 Acceleration of Vesting — Financial Statement Effects and Presentation — Year Ended June 30, 2021 2020 Stock options $ 76,616 $ (59,019 ) RSUs 566,249 309,757 Total $ 642,865 $ 250,738 During the year ended June 30, 2020, an unusually large number of grants were forfeited unvested due to the departure of several executives. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of Class A common stock outstanding during each period presented. Diluted earnings (loss) per share is computed similarly to basic earnings (loss) per share except that it reflects the potential dilution that could occur if dilutive securities or other obligations to issue shares of Class A common stock were exercised or converted into shares of Class A common stock. The computations for basic and diluted earnings (loss) per share are described in the following table: Year Ended June 30, 2021 2020 Net income (loss) $ (3,185,251 ) $ 866,929 Weighted-average common shares outstanding: Basic number of shares 26,314,025 25,853,419 Effect of dilutive securities: Options to purchase common stock - 7,026 RSUs - 1,609,400 Diluted number of shares 26,314,025 27,469,845 Earnings (loss) per common share: Basic $ (0.12 ) $ 0.03 Diluted $ (0.12 ) $ 0.03 The following weighted-average potential dilutive shares were not included in the computation of diluted earnings per share, as their effects would be anti-dilutive: Year Ended June 30, 2021 2020 Options to purchase common stock 490,703 918,951 RSUs 2,220,710 518,610 2,711,413 1,437,561 |
Defined Contribution Plan
Defined Contribution Plan | 12 Months Ended |
Jun. 30, 2021 | |
Defined Benefit Plan, Additional Information [Abstract] | |
Defined Contribution Plan | The Company provides retirement benefits to its U.S.-based employees through a defined contribution retirement plan. These benefits are offered under the Insperity 401(k) plan (the “Insperity Plan”). The Insperity Plan is a defined 401(k) contribution plan that all employees, over the age of 21, are eligible to participate in after three months of employment. Under the Insperity Plan, the Company matches 100% of the first 2% of employee contributions. As of June 30, 2021, there were 70 employees enrolled in this plan. The Company made matching contributions of approximately $111,000 and $97,000 during the years ended June 30, 2021 and 2020, respectively. |
Leases
Leases | 12 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | The Company has operating leases for its manufacturing and office space. As of June 30, 2021, the Company had two lease agreements for its corporate headquarters and manufacturing facilities in Orlando, Florida. The first lease (the “Orlando Lease”) was amended effective April 30, 2021 to expand the space from approximately 26,000 square feet to approximately 52,000 square feet. The lease term was extended from April 30, 2022, to that certain date that is one hundred twenty-seven (127) months after the date the landlord completes certain work to be done at the leased premises. The commencement date is expected to be May 1, 2022. Minimum rental rates for the extension term were established based on annual increases of approximately three percent (3%). Additionally, there is one five-year extension option exercisable by the Company. The minimum rental rates for such additional extension option will be determined at the time an option is exercised and will be based on a “fair market rental rate,” as determined in accordance with the Orlando Lease, as amended. The second lease was entered into in April 2018 for 12,378 square feet in Orlando, Florida (the “Orlando Lease II”), which provides additional manufacturing and office space near the Company’s corporate headquarters. The commencement date of the Orlando Lease II was December 1, 2018, and it has a four-year original term with one renewal option for an additional five-year term. This lease will expire in November 2022 and will not be renewed, as this manufacturing and office space will be relocated to the expanded space included in the Orlando Lease, as amended. As of June 30, 2021, the Company, through its wholly-owned subsidiary, LPOI, had a lease agreement for an office facility in Shanghai, China (the “Shanghai Lease”) for 1,900 square feet. The Shanghai Lease commenced in October 2015. During fiscal 2020, the Shanghai Lease was renewed for an additional three-year term, and now expires in October 2022. As of June 30, 2021, the Company, through its wholly-owned subsidiary, LPOIZ, had three lease agreements for manufacturing and office facilities in Zhenjiang, China for an aggregate of 55,000 square feet. The initial lease (the “Zhenjiang Lease I”) is for approximately 26,000 square feet, and had a five-year original term with renewal options. In fiscal 2019, the Company renewed the Zhenjiang Lease I and it now expires in June 2022. During fiscal 2018, another lease was executed for 13,000 additional square feet in this same facility (the “Zhenjiang Lease II”). The Zhenjiang Lease II has a 54-month term, and expires in December 2021. During fiscal 2019, LPOIZ entered into a third lease agreement for manufacturing space near the existing facility, for an additional 16,000 square feet (the “Zhenjiang Lease III”). The Zhenjiang Lease III has a three-year term and expires in April 2022. At June 30, 2021, the Company, through ISP’s wholly-owned subsidiary ISP Latvia, had two lease agreements for a manufacturing and office facility in Riga, Latvia for an aggregate of 29,000 square feet. The first lease (“Riga Lease I”) was amended in August 2020, to expand the space to approximately 24,000 square feet. The lease term was extended from December 31, 2022 to December 31, 2025. The second lease (“Riga Lease II”), for approximately 5,000 square feet, had a five-year original term with renewal options, and was set to expire in December 2019. During fiscal 2019, the Riga Lease II was renewed, and now expires in December 2022. Until August 31, 2020, the Company, through its wholly-owned subsidiary ISP, had a lease agreement for a manufacturing and office facility in Irvington, New York (the “ISP Lease”) for 13,000 square feet. The ISP Lease, which had a five-year original term with renewal options, expired in August 2020. As of June 30, 2019, the relocation of the operations formerly housed in this facility was complete and we had ceased use of this facility. See Note 18, Restructuring As discussed in Note 2, Significant Accounting Policies, to these Consolidated Financial Statements, the Company adopted ASC Topic 842 effective July 1, 2019. The Company’s facility leases are classified as operating leases, and the Company also has finance leases related to certain equipment located in Orlando, Florida. The operating leases for facilities are non-cancelable, expiring through 2022. The Company includes options to renew (or terminate) in the lease term, and as part of the right-of-use (“ROU”) assets and lease liabilities, when it is reasonably certain that the Company will exercise that option. The Company currently has obligations under four finance lease agreements, entered into during fiscal years 2018 and 2019, with terms ranging from three to five years. The leases are for computer and manufacturing equipment. The Company’s operating lease ROU assets and the related lease liabilities are initially measured at the present value of future lease payments over the lease term. Two of our operating leases include renewal options, which were not included in the measurement of the operating lease ROU assets and related lease liabilities. As most of the Company’s leases do not provide an implicit rate, the Company used its collateralized incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. Currently, none of the Company’s leases include variable lease payments that are dependent on an index or rate. The Company is responsible for payment of certain real estate taxes, insurance and other expenses on certain of its leases. These amounts are generally considered to be variable and are not included in the measurement of the ROU asset and lease liability. The Company generally accounts for non-lease components, such as maintenance, separately from lease components. The Company’s lease agreements do not contain any material residual value guarantees or material restricted covenants. Leases with a term of 12 months or less are not recorded on the Consolidated Balance Sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company received tenant improvement allowances for the Orlando Lease and for Orlando Lease II. These allowances were used to construct improvements and are included in leasehold improvements and operating lease liabilities. The balances are being amortized over the corresponding lease terms. The components of lease expense were as follows: Year Ended June 30, 2021 2020 Operating lease cost $ 682,980 $ 646,845 Finance lease cost: Depreciation of lease assets 207,931 324,058 Interest on lease liabilities 44,248 77,540 Total finance lease cost 252,179 401,598 Total lease cost $ 935,159 $ 1,048,443 Supplemental balance sheet information related to leases was as follows: Classification June 30, 2021 June 30, 2020 Assets: Operating lease assets Operating lease assets $ 9,015,498 $ 1,220,430 Finance lease assets Property and equipment, net(1) 477,102 666,519 Total lease assets $ 9,492,600 $ 1,886,949 Liabilities: Current: Operating leases Operating lease liabilities, current $ 799,507 $ 765,422 Short-term leases Accrued liabilities(2) - 97,665 Finance leases Finance lease liabilities, current 212,212 278,040 Noncurrent: Operating leases Operating lease liabilities, less current portion 8,761,133 887,766 Finance leases Finance lease liabilities, less current portion 66,801 279,435 Total lease liabilities $ 9,839,653 $ 2,308,328 (1) Finance lease assets are recorded net of accumulated depreciation of approximately $477,000 million as of June 30, 2021. (2) Represents accrual related to the ISP Lease, which we ceased use of as of June 30, 2019. All remaining lease payments were accrued as of that date, through the ISP Lease expiration in August 2020. Lease term and discount rate information related to leases was as follows: Lease Term and Discount Rate June 30, 2021 Weighted Average Remaining Lease Term (in years) Operating leases 10.9 Finance leases 1.4 Weighted Average Discount Rate Operating leases 3.0 % Finance leases 7.8 % Supplemental cash flow information: Year Ended June 30, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash used for operating leases $ 869,668 $ 790,199 Operating cash used for finance leases $ 44,247 $ 77,553 Financing cash used for finance leases $ 278,462 $ 487,233 Future maturities of lease liabilities were as follows as of June 30, 2021: Fiscal year ending: Finance Leases Operating Leases June 30, 2022 231,783 832,120 June 30, 2023 59,647 1,039,572 June 30, 2024 11,811 943,624 June 30, 2025 — 968,324 June 30, 2026 — 874,256 Thereafter — 6,219,941 Total future minimum payments 303,241 10,877,837 Less imputed interest (24,228 ) (1,317,197 ) Present value of lease liabilities $ 279,013 $ 9,560,640 |
Contingencies
Contingencies | 12 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | The Company from time to time is involved in various legal actions arising in the normal course of business. Management, after reviewing with legal counsel all of these actions and proceedings, believes that the aggregate losses, if any, will not have a material adverse effect on the Company’s financial position or results of operations. In April 2021, the Company terminated several employees of our China subsidiaries, LPOIZ and LPOI, including the General Manager, the Sales Manager, and the Engineering Manager, after determining that they had engaged in malfeasance and conduct adverse to our interests, including efforts to misappropriate certain of our proprietary technology, diverting sales to entities owned or controlled by these former employees and other suspected acts of fraud, theft and embezzlement. In connection with such terminations, the Company’s China subsidiaries have engaged in certain legal proceedings with the terminated employees. The Company has incurred various expenses associated with its investigation into these matters prior and subsequent to the termination of the employees and the associated legal proceedings. These expenses, which included legal, consulting and other business management fees, totaled $718,000 during the year ended June 30, 2021. Such expenses were recorded as “Selling, general and administrative” expenses in the accompanying Consolidated Statement of Comprehensive Income (Loss). The Company also identified a further liability in the amount of $210,000 which may be incurred in the future due to the actions of these employees. This amount has been accrued as of June 30, 2021, pending further investigation, and included in “Other Expense, net” in the accompanying Consolidated Statement of Comprehensive Income (Loss). Knowing that employee transitions in international subsidiaries can lead to lengthy legal proceedings that can interrupt the subsidiary’s ability to operate, compounded by the fact that our officers could not travel to China to oversee the transitions because of the travel restrictions imposed by COVID-19, the Company chose to enter into severance agreements with certain of the employees at the time of termination. Pursuant to the severance agreements, LPOIZ and LPOI agreed to pay such employees severance of approximately $485,000 in the aggregate, to be paid over a six-month period, with such payments contingent upon the employees complying and cooperating with the terms set forth in the severance agreements. To date, the employees have not fully complied with the terms set forth in the severance agreements and, therefore, LPOIZ and LPOI have not yet paid these amounts. Currently, there are ongoing civil actions in China in connection with LPOIZ’s and LPOI’s refusal to pay these severance amounts due to the employees’ non-compliance. However, based on the likelihood that the courts will determine that the Company’s subsidiaries will ultimately be obligated to pay these amounts, we have accrued for these payments as of June 30, 2021. The Company has transitioned the management of LPOI and LPOIZ to a new management team without any significant detrimental effects on the ability of those subsidiaries to operate. Management does not expect any material adverse impact to the business operations of LPOI or LPOIZ as result of the transition. The Company expects to incur additional legal fees and consulting expenses in future periods as all legal options and remedies are pursued; however, such future fees are expected to be at lower levels than have been incurred to date. Although the Company has taken steps to minimize the business impacts from the termination of the management employees and transition to new management personnel, the Company experienced some short-term adverse impacts on LPOIZ’s and LPOI’s domestic sales in China and results of operations in the three-month period ended June 30, 2021, which management anticipates may continue for the next one to two quarters. The Company has not experienced, nor does management anticipate, any material adverse impact on LPOIZ’s or LPOI’s production and supply of products to its other subsidiaries for their customers. The Company’s business, results of operations financial condition, cash flows, and the stock price of its Class A common stock can be adversely affected by pandemics, epidemics, or other public health emergencies, such as the recent outbreak of the coronavirus (“COVID-19”), which has spread from China to many other countries across the world, including the United States. In March 2020, the World Health Organization (the “WHO”) declared COVID-19 as a pandemic. The COVID-19 pandemic has resulted in governments around the world implementing increasingly stringent measures to help control the spread of the virus, including “stay at home” orders, travel restrictions, business curtailments, school closures, and other measures. To date, the Company has not experienced any direct financial impact of COVID-19 to its business. However, the COVID-19 pandemic continues to impact economic conditions, which could impact the short-term and long-term demand from customers and, therefore, has the potential to negatively impact the Company’s results of operations, cash flows, and financial position in the future. Management is actively monitoring this situation and any impact on our financial condition, liquidity, and results of operations. However, given the daily evolution of the COVID-19 pandemic and the global responses to curb its spread, we are not presently able to estimate the effects of the COVID-19 pandemic on our future results of operations, financial, or liquidity in fiscal year 2022 or beyond. |
Foreign Operations
Foreign Operations | 12 Months Ended |
Jun. 30, 2021 | |
Foreign Currency [Abstract] | |
Foreign Operations | Assets and liabilities denominated in non-U.S. currencies are translated at rates of exchange prevailing on the balance sheet date, and revenues and expenses are translated at average rates of exchange for the period. Gains or losses on the translation of the financial statements of a non-U.S. operation, where the functional currency is other than the U.S. dollar, are reflected as a separate component of equity, which was a cumulative gain of approximately $2.1 million and $736,000 as of June 30, 2021 and 2020, respectively. During the years ended June 30, 2021 and 2020, we also recognized net foreign currency transaction losses of approximately $1,000 and $214,000, respectively, included in the Consolidated Statements of Comprehensive Income (Loss) in the line item entitled “Other income (expense), net.” Assets and net assets in foreign countries are as follows: China Latvia June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Assets $20.1 million $19.0 million $11.3 million $9.8 million Net assets $16.6 million $16.2 million $9.0 million $8.2 million |
Supplier and Customer Concentra
Supplier and Customer Concentrations | 12 Months Ended |
Jun. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
Supplier and Customer Concentrations | The Company utilizes a number of glass compositions in manufacturing its molded glass aspheres and lens array products. These glasses or equivalents are available from a large number of suppliers, including CDGM Glass Company Ltd., Ohara Corporation, and Sumita Optical Glass, Inc. Base optical materials, used in certain of the Company’s specialty products, are manufactured and supplied by a number of optical and glass manufacturers. The Company also utilizes major infrared material suppliers located around the globe for a broad spectrum of infrared crystal and glass. The Company believes that a satisfactory supply of such production materials will continue to be available, at reasonable prices or, in some cases, at increased prices, although there can be no assurance in this regard. In fiscal 2021, the Company had sales to three customers that comprised an aggregate of approximately 38% of its annual revenue, and 31% of its June 30, 2021 accounts receivable. Sales to these customers as a percentage of our fiscal 2021 revenue include one customer at 18%, another customer at 10%, and the third customer at 10%. One of these customers comprised 21% of accounts receivable, a second customer comprised 10% of accounts receivable and the other customer had no accounts receivable balance as of June 30, 2021. In fiscal 2020, the Company had sales to three customers that comprised an aggregate of approximately 31% of its annual revenue, and 30% of its accounts receivable. Sales to these customers as a percentage of our fiscal 2020 revenue include one customer at 15%, another customer at 10%, and the third customer at 6%. One of these customers comprised 18% of accounts receivable, and the other two customers were each less than 10% of accounts receivable as of June 30, 2020. The loss of any of these customers, or a significant reduction in sales to any such customer, would adversely affect the Company’s revenues. In fiscal 2021, 68% of the Company’s net revenue was derived from sales outside of the U.S., with 95% of foreign sales derived from customers in Europe and Asia. In fiscal 2020, 66% of the Company’s net revenue was derived from sales outside of the U.S., with 96% of foreign sales derived from customers in Europe and Asia. |
Loans Payable
Loans Payable | 12 Months Ended |
Jun. 30, 2021 | |
Loans Payable [Abstract] | |
Loans Payable | BankUnited Loans On February 26, 2019, the Company entered into a Loan Agreement (the “Loan Agreement”) with BankUnited for (i) a revolving line of credit up to maximum amount of $2,000,000 (the “BankUnited Revolving Line”), (ii) a term loan in the amount of up to $5,813,500 (“BankUnited Term Loan”), and (iii) a non-revolving guidance line of credit up to a maximum amount of $10,000,000 (the “Guidance Line” and, together with the BankUnited Revolving Line and BankUnited Term Loan, the “BankUnited Loans”). Each of the BankUnited Loans is evidenced by a promissory note in favor of BankUnited (the “BankUnited Notes”). On May 6, 2019, the Company entered into that certain First Amendment to Loan Agreement, effective February 26, 2019, with BankUnited (the “Amendment” and, together with the Loan Agreement, the “Amended Loan Agreement”). The Amendment amended the definition of the fixed charge coverage ratio to more accurately reflect the parties’ understandings at the time the Loan Agreement was executed. On September 9, 2021, the Company entered into a letter agreement with BankUnited (the “Letter Agreement”). The Letter Agreement: (i) reduces the fixed charge coverage ratio to 1.0 for the quarter ending September 30, 2021 and to 1.1 for the quarter ended December 31, 2021; (ii) modifies the calculation for both the fixed charge coverage ratio and the total leverage ratio to provide for adjustments related to expenses incurred in connection with the events at LPOI and LPOIZ, which expenses must be approved by BankUnited; (iii) terminates the Guidance Line; and (iv) requires approval from BankUnited prior to our being able to draw upon the Revolving Line, subject to our compliance with the fixed charge coverage ratio for the quarters ending September 30, 2021 and December 31, 2021. The Letter Agreement also granted the Company a waiver of default arising prior to the Letter Agreement for its failure to comply with the fixed charge coverage ratio measured on June 30, 2021. Based on the waiver, the Company no longer in default of the Amended Loan Agreement. Finally, in connection with the Letter Agreement, the Company paid BankUnited a fee equal to $10,000. BankUnited Revolving Line Pursuant to the Amended Loan Agreement, BankUnited will make loan advances under the BankUnited Revolving Line to the Company up to a maximum aggregate principal amount outstanding not to exceed $2,000,000, which proceeds will be used for working capital and general corporate purposes. Pursuant to the Letter Agreement, advances from the BankUnited Revolving Line will require specific lender approval, which will not be granted in the absence of compliance with all applicable covenants, as amended. Amounts borrowed under the BankUnited Revolving Line may be repaid and re-borrowed at any time prior to February 26, 2022, at which time all amounts will be immediately due and payable. The advances under the BankUnited Revolving Line bear interest, on the outstanding daily balance, at a per annum rate equal to 2.75% above the 30-day LIBOR. Interest payments are due and payable, in arrears, on the first day of each month. As of June 30, 2021, the applicable interest rate was 2.84% and there were no amounts outstanding under the BankUnited Revolving Line. BankUnited Term Loan Pursuant to the Amended Loan Agreement, BankUnited advanced the Company $5,813,500 to satisfy in full the amounts owed to Avidbank and to pay the fees and expenses incurred in connection with closing of the BankUnited Loans. The BankUnited Term Loan is for a 5-year term, but co-terminus with the BankUnited Revolving Line should the BankUnited Revolving Line not be renewed beyond February 26, 2022. Management expects the BankUnited Revolving Line to be renewed. The BankUnited Term Loan bears interest at a per annum rate equal to 2.75% above the 30-day LIBOR. Equal monthly principal payments of $48,445.83, plus accrued interest, are due and payable, in arrears, on the first day of each month during the term. Upon maturity, all principal and interest shall be immediately due and payable. As of June 30, 2021, the applicable interest rate was 2.84% and the outstanding balance on the BankUnited Term Loan was approximately $4.5 million. Guidance Line Prior to the Letter Agreement, the Amended Loan Agreement provided that BankUnited, in its sole discretion, could make loan advances to the Company under the Guidance Line up to a maximum aggregate principal amount outstanding not to exceed $10,000,000, which proceeds could have been used for capital expenditures and approved business acquisitions. Such advances were required to be in minimum amounts of $1,000,000 for acquisitions and $500,000 for capital expenditures, and would be limited to 80% of cost or as otherwise determined by BankUnited. Amounts borrowed under the Guidance Line could not be re-borrowed. The advances under the Guidance Line would bear interest, on the outstanding daily balance, at a per annum rate equal to 2.75% above the 30-day LIBOR. Interest payments would be due and payable, in arrears, on the first day of each month. On each anniversary of the Amended Loan Agreement, monthly principal payments would become payable, amortized based on a ten-year term. There were no amounts outstanding under the Guidance Line at June 30, 2021. The Guidance Line was terminated after the end of fiscal 2021 in accordance with the Letter Agreement. Security and Guarantees The Company’s obligations under the Amended Loan Agreement are collateralized by a first priority security interest (subject to permitted liens) in all of its assets and the assets of the Company’s U.S. subsidiaries, GelTech, and ISP, pursuant to a Security Agreement granted by GelTech, ISP, and the Company in favor of BankUnited. The Company’s equity interests in, and the assets of, its foreign subsidiaries are excluded from the security interest. In addition, all of the Company’s subsidiaries have guaranteed the Company’s obligations under the Amended Loan Agreement and related documents, pursuant to Guaranty Agreements executed by the Company and its subsidiaries in favor of BankUnited. General Terms The Amended Loan Agreement contains customary covenants, including, but not limited to: (i) limitations on the disposition of property; (ii) limitations on changing the Company’s business or permitting a change in control; (iii) limitations on additional indebtedness or encumbrances; (iv) restrictions on distributions; and (v) limitations on certain investments. The Amended Loan Agreement also contains certain financial covenants, including obligations to maintain a fixed charge coverage ratio of 1.25 to 1.00 and a total leverage ratio of 4.00 to 1.00. The Letter Agreement granted the Company a waiver of default arising prior to the Letter Agreement from its failure to comply with the fixed charge coverage ratio measured on June 30, 2021. Based on the waiver, the Company is no longer in default of the Amended Loan Agreement. As of June 30, 2021, the Company was in compliance with all other covenants. We may prepay any or all of the BankUnited Loans in whole or in part at any time, without penalty or premium. Late payments are subject to a late fee equal to five percent (5%) of the unpaid amount. Amounts outstanding during an event of default accrue interest at a rate of five percent (5%) above the 30-day LIBOR applicable immediately prior to the occurrence of the event of default. The Amended Loan Agreement contains other customary provisions with respect to events of default, expense reimbursement, and confidentiality. Financing costs related to the BankUnited Loans were recorded as a discount on debt and are being amortized over the term. Amortization of approximately $19,000 is included in interest expense for each the years ended June 30, 2021 and 2020. In December 2020, ISP Latvia entered into an equipment loan with a third party (the “Equipment Loan”), which party is also a significant customer, and which the Equipment Loan is subordinate to the BankUnited Loans, and collateralized by certain equipment. The initial advance under the Equipment Loan was 225,000 EUR (or USD $275,000), payable in equal installments over 60 months, the proceeds of which were used to make a prepayment to a vendor for equipment to be delivered at a future date. The Equipment Loan bears interest at a fixed rate of 3.3%. An additional 225,000 EUR (or USD $275,000) is expected to be drawn when the final payment is due to the vendor for the equipment. Future maturities of loans payable are as follows: BankUnited Term Loan Equipment Loan Unamortized Debt Costs Total Fiscal year ending: June 30, 2022 $ 581,350 $ 55,075 (18,572 ) $ 617,853 June 30, 2023 581,350 55,075 (18,572 ) 617,853 June 30, 2024 3,342,763 55,075 (12,382 ) 3,385,456 June 30, 2025 55,075 - 55,075 After June 30, 2025 15,974 - 15,974 Total payments $ 4,505,463 $ 236,274 $ (49,526 ) 4,692,211 Less current portion (634,846 ) Non-current portion $ 4,057,365 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Consolidated financial statements | Consolidated Financial Statements |
Management estimates | Management estimates. |
Cash and cash equivalents | Cash and cash equivalents |
Allowance for accounts receivable | Allowance for accounts receivable |
Inventories | Inventories, |
Property and equipment | Property and equipment |
Long-lived assets | Long-lived assets |
Goodwill and intangible assets | Goodwill and Intangible Assets The Company will assess the qualitative factors to determine whether it is more likely than not that the fair value of its reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the goodwill impairment analysis. If the Company determines that it is more likely than not that its fair value is less than its carrying amount, then the goodwill impairment test is performed. The first step, identifying a potential impairment, compares the fair value of the reporting unit with its carrying amount. If the carrying amount exceeds its fair value, the second step would need to be performed; otherwise, no further steps are required. The second step, measuring the impairment loss, compares the implied fair value of the goodwill with the carrying amount of the goodwill. Any excess of the goodwill carrying amount over the implied fair value is recognized as an impairment loss, and the carrying value of goodwill is written down to fair value. The Company did not record any goodwill impairment during the fiscal years ended June 30, 2021 or 2020. |
Leases | Leases. Leases (Topic 842) Leases |
Income taxes | Income taxes The Company has not recognized a liability for uncertain tax positions. A reconciliation of the beginning and ending amount of unrecognized tax benefits or penalties has not been provided since there has been no unrecognized benefit or penalty. If there were an unrecognized tax benefit or penalty, the Company would recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. The Company files United States (“U.S.”) Federal income tax returns, as well as tax returns in various states and foreign jurisdictions. Open tax years subject to examination by the Internal Revenue Service generally remain open for three years from the filing date. Tax years subject to examination by the state jurisdictions generally remain open for up to four years from the filing date. In Latvia, tax years subject to examination remain open for up to five years from the filing date and, in China, tax years subject to examination remain open for up to ten years from the filing date. Our cash, cash equivalents totaled approximately $6.8 million at June 30, 2021. Of this amount, greater than 50% was held by our foreign subsidiaries in China and Latvia. These foreign funds were generated in China and Latvia as a result of foreign earnings. Historically, we considered unremitted earnings held by our foreign subsidiaries to be permanently reinvested. However, during fiscal 2020, we began declaring intercompany dividends to remit a portion of the earnings of our foreign subsidiaries to the U.S. parent company. It is still our intent to reinvest a significant portion of earnings generated by our foreign subsidiaries, however we also plan to repatriate a portion of their earnings. With respect to the funds generated by our foreign subsidiaries in China, the retained earnings of the legal entity must equal at least 50% of the registered capital before any funds can be repatriated. During fiscal 2021 and 2020, we repatriated approximately $4 million and $2 million, respectively, from LPOIZ. Based on retained earnings as of December 31, 2020, the end of the most recent statutory tax year, LPOIZ had an additional $5.6 million available and LPOIZ did not have any funds available for repatriation. Based on our previous intent, we had not historically provided for future Chinese withholding taxes on the related earnings. However, during fiscal 2020 we began to accrue for these taxes on the portion of earnings that we intend to repatriate. As of June 30, 2021, withholding taxes of $100,000 have been accrued related to future dividends. Beginning in fiscal 2019, earnings from the Company’s non-U.S. subsidiaries were subject to the global intangible low-taxed income Income Taxes |
Revenue recognition | Revenue recognition Revenue |
VAT | VAT |
New product development | New product development |
Stock-based compensation | Stock-based compensation |
Fair value of financial instruments | Fair value of financial instruments. Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable. Level 3 - Unobservable inputs that are supported by little or no market activity, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values. These financial instruments include accounts receivable, accounts payable and accrued liabilities. Fair values were assumed to approximate carrying values for these financial instruments since they are short term in nature and their carrying amounts approximate fair values or they are receivable or payable on demand. The fair value of the Company’s finance lease obligations and loans payable approximate their carrying values, based upon current rates available to us. See Note 17, Loans Payable The Company does not have any other financial or non-financial assets or liabilities that would be characterized as Level 1, Level 2 or Level 3 instruments. |
Debt issuance costs | Debt issuance costs |
Comprehensive income | Comprehensive income |
Business segments | Business segments. |
Recent accounting pronouncements | Recent accounting pronouncements. In December 2019, the FASB issued Accounting Standards Update (“ASU”) 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” The amendments in this update simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify U.S. GAAP for other areas of Topic 740 by clarifying and amending existing guidance. For public business entities, the amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. This ASU will be effective for the Company in the first quarter of fiscal year 2022. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of this update on its Consolidated Financial Statements. No other new accounting pronouncement recently issued or newly effective had or is expected to have a material impact on the Consolidated Financial Statements. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of revenue by product group | Year Ended June 30, 2021 2020 PMO $ 15,882,189 $ 14,639,687 Infrared Products 20,971,080 18,052,856 Specialty Products 1,611,552 2,275,420 Total revenue $ 38,464,821 $ 34,967,963 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of components of inventory | June 30, 2021 June 30, 2020 Raw materials $ 3,908,630 $ 3,876,955 Work in process 2,473,070 2,989,070 Finished goods 3,467,105 3,134,800 Allowance for obsolescence (1,189,218 ) (1,016,343 ) $ 8,659,587 $ 8,984,482 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and quipment | Estimated June 30, June 30, Lives (Years) 2021 2020 Manufacturing equipment 5 - 10 $ 21,465,402 $ 18,444,448 Computer equipment and software 3 - 5 918,679 801,625 Furniture and fixtures 5 362,944 321,418 Leasehold improvements 5 - 7 2,944,543 2,171,388 Construction in progress 1,529,452 1,274,880 Total property and equipment 27,221,020 23,013,759 Less accumulated depreciation and amortization (13,941,153 ) (11,214,698 ) Total property and equipment, net $ 13,279,867 $ 11,799,061 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets | Useful Lives (Years) June 30, 2021 June 30, 2020 Customer relationships 15 $ 3,590,000 $ 3,590,000 Trade secrets 8 3,272,000 3,272,000 Trademarks 8 3,814,000 3,814,000 Total intangible assets 10,676,000 10,676,000 Less accumulated amortization (5,093,119 ) (3,968,036 ) Total intangible assets, net $ 5,582,881 $ 6,707,964 |
Schedule of future amortization of intangible assets | Fiscal year ending: June 30, 2022 1,125,083 June 30, 2023 1,125,083 June 30, 2024 1,125,083 June 30, 2025 658,398 After June 30, 2025 1,549,234 $ 5,582,881 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Summary of total tax expense and effective income tax rate | For financial reporting purposes, income before income taxes includes the following components: Year Ended June 30, 2021 2020 Pretax income (loss): United States $ (5,265,813 ) $ (3,739,527 ) Foreign 3,014,477 5,370,454 Income (loss) before income taxes $ (2,251,336 ) $ 1,630,927 The components of the provision for income taxes are as follows: Year Ended June 30, 2021 2020 Current: Federal tax $ - $ - State 18,563 3,047 Foreign 403,352 767,951 Total current 421,915 770,998 Deferred: Federal tax 510,069 4,931 State 1,931 (11,931 ) Foreign - - Total deferred 512,000 (7,000 ) Total income tax provision $ 933,915 $ 763,998 |
Reconciliation of income tax | Year Ended June 30, 2021 2020 U.S. federal statutory tax rate 21.0 % 21.0 % Income tax provision reconciliation: Tax at statutory rate: $ (472,782 ) $ 342,495 Net foreign income subject to lower tax rate (169,276 ) (497,959 ) State income taxes, net of federal benefit (196,719 ) (75,415 ) Valuation allowance (1,400,450 ) 344,793 NOL expiration and adjustments 3,516,695 (206,807 ) GILTI 310,431 835,101 Federal research and development and other credits (74,288 ) (71,962 ) Stock-based compensation (265,485 ) - Other permanent differences (67,893 ) (183,367 ) Other, net (246,318 ) 277,119 $ 933,915 $ 763,998 |
Deferred tax assets and liabilities | Year Ended June 30, 2021 2020 Deferred tax assets: Net operating loss carryforwards $ 13,585,000 $ 16,039,000 Stock-based compensation 563,000 868,000 R&D and other credits 2,177,000 2,108,000 Capitalized R&D expenses 564,000 487,000 Inventories 253,000 218,000 Accrued expenses and other 347,000 99,000 Gross deferred tax assets 17,489,000 19,819,000 Valuation allowance for deferred tax assets (15,644,000 ) (17,044,000 ) Total deferred tax assets 1,845,000 2,775,000 Deferred tax liabilities: Depreciation and other (255,000 ) (390,000 ) Intangible assets (1,443,000 ) (1,726,000 ) Total deferred tax liabilities (1,698,000 ) (2,116,000 ) Net deferred tax assets $ 147,000 $ 659,000 |
Compensatory Equity Incentive_2
Compensatory Equity Incentive Plan and Other Equity Incentives (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of share based compensation award plans | Equity Compensation Arrangement Award Shares Authorized Outstanding at June 30, 2021 Available for Issuance at June 30, 2021 SICP (or Omnibus Plan) 5,115,625 2,194,812 829,786 2014 ESPP 400,000 — 298,455 5,515,625 2,194,812 1,128,241 |
Schedule of stock options fair value assumptions | Year Ended June 30, 2021 2020 Weighted-average expected volatility 72.0 % 65.9 % Dividend yields 0 % 0 % Weighted-average risk-free interest rate 0.74 % 1.47 % Weighted-average expected term, in years 7.49 7.49 |
Schedule of share-based payment awards activity | Stock Options Restricted Stock Units (RSUs) Weighted- Weighted- Weighted- Average Average Average Exercise Remaining Remaining Shares Price Contract Shares Contract June 30, 2019 979,925 $ 1.80 5.5 1,864,526 0.9 Granted 314,817 $ 1.60 9.6 484,000 2.4 Exercised (29,356 ) $ 1.35 (17,204 ) Cancelled/Forfeited (322,811 ) $ 2.08 (3,019 ) June 30, 2020 942,575 $ 1.65 6.5 2,328,303 0.9 Granted 121,933 $ 2.97 9.7 296,386 2.3 Exercised (225,137 ) $ 1.50 (862,804 ) Cancelled/Forfeited (406,444 ) $ 1.75 - June 30, 2021 432,927 $ 2.01 8.8 1,761,885 0.9 Awards exercisable/ vested as of June 30, 2021 110,943 $ 1.55 7.9 1,163,298 — Awards unexercisable/ unvested as of June 30, 2021 321,984 $ 2.17 9.1 598,587 0.9 432,927 1,761,885 |
Schedule of share-based compensation future cost to be recognized | Fiscal Year Ending: Stock Options RSUs Total June 30, 2022 $ 110,128 $ 312,766 $ 422,894 June 30, 2023 116,986 258,592 375,578 June 30, 2024 94,516 132,045 226,561 June 30, 2025 33,885 34,707 68,592 $ 355,515 $ 738,110 $ 1,093,625 |
Summary of the number and weighted average grant date fair values regarding our unexercisable/unvested awards | Unexercisable/Unvested Awards Stock Options Shares RSU Shares Total Shares Weighted-Average Grant Date Fair Values (per share) June 30, 2019 110,695 400,144 510,839 $ 2.09 Granted 314,817 484,000 798,817 $ 0.79 Vested (99,151 ) (203,147 ) (302,298 ) $ 1.78 Cancelled/Forfeited (60,079 ) (11,471 ) (71,550 ) $ 2.70 June 30, 2020 266,282 669,526 935,808 $ 1.10 Granted 121,933 296,386 418,319 $ 2.48 Vested (64,636 ) (367,325 ) (431,961 ) $ 1.39 Cancelled/Forfeited (1,595 ) - (1,595 ) $ 2.85 June 30, 2021 321,984 598,587 920,571 $ 1.59 |
Schedule of total stock-based compensation expense included in the consolidated statements of comprehensive income | Year Ended June 30, 2021 2020 Stock options $ 76,616 $ (59,019 ) RSUs 566,249 309,757 Total $ 642,865 $ 250,738 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of the computations for basic and diluted earnings (loss) per common share | Year Ended June 30, 2021 2020 Net income (loss) $ (3,185,251 ) $ 866,929 Weighted-average common shares outstanding: Basic number of shares 26,314,025 25,853,419 Effect of dilutive securities: Options to purchase common stock - 7,026 RSUs - 1,609,400 Diluted number of shares 26,314,025 27,469,845 Earnings (loss) per common share: Basic $ (0.12 ) $ 0.03 Diluted $ (0.12 ) $ 0.03 |
Schedule of potential dilutive shares were not included in the computation of diluted earnings (loss) per common share | Year Ended June 30, 2021 2020 Options to purchase common stock 490,703 918,951 RSUs 2,220,710 518,610 2,711,413 1,437,561 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Lease costs | Year Ended June 30, 2021 2020 Operating lease cost $ 682,980 $ 646,845 Finance lease cost: Depreciation of lease assets 207,931 324,058 Interest on lease liabilities 44,248 77,540 Total finance lease cost 252,179 401,598 Total lease cost $ 935,159 $ 1,048,443 |
Supplemental lease information | Classification June 30, 2021 June 30, 2020 Assets: Operating lease assets Operating lease assets $ 9,015,498 $ 1,220,430 Finance lease assets Property and equipment, net(1) 477,102 666,519 Total lease assets $ 9,492,600 $ 1,886,949 Liabilities: Current: Operating leases Operating lease liabilities, current $ 799,507 $ 765,422 Short-term leases Accrued liabilities(2) - 97,665 Finance leases Finance lease liabilities, current 212,212 278,040 Noncurrent: Operating leases Operating lease liabilities, less current portion 8,761,133 887,766 Finance leases Finance lease liabilities, less current portion 66,801 279,435 Total lease liabilities $ 9,839,653 $ 2,308,328 Lease Term and Discount Rate June 30, 2021 Weighted Average Remaining Lease Term (in years) Operating leases 10.9 Finance leases 1.4 Weighted Average Discount Rate Operating leases 3.0 % Finance leases 7.8 % Supplemental cash flow information: Year Ended June 30, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash used for operating leases $ 869,668 $ 790,199 Operating cash used for finance leases $ 44,247 $ 77,553 Financing cash used for finance leases $ 278,462 $ 487,233 |
Future maturities of lease liabilities | Fiscal year ending: Finance Leases Operating Leases June 30, 2022 231,783 832,120 June 30, 2023 59,647 1,039,572 June 30, 2024 11,811 943,624 June 30, 2025 — 968,324 June 30, 2026 — 874,256 Thereafter — 6,219,941 Total future minimum payments 303,241 10,877,837 Less imputed interest (24,228 ) (1,317,197 ) Present value of lease liabilities $ 279,013 $ 9,560,640 |
Foreign Operations (Tables)
Foreign Operations (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Foreign Currency [Abstract] | |
Assets and net assets in foreign countries | China Latvia June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 Assets $20.1 million $19.0 million $11.3 million $9.8 million Net assets $16.6 million $16.2 million $9.0 million $8.2 million |
Loans Payable (Tables)
Loans Payable (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Loans Payable [Abstract] | |
Schedule of future maturities of loans payable | BankUnited Term Loan Equipment Loan Unamortized Debt Costs Total Fiscal year ending: June 30, 2022 $ 581,350 $ 55,075 (18,572 ) $ 617,853 June 30, 2023 581,350 55,075 (18,572 ) 617,853 June 30, 2024 3,342,763 55,075 (12,382 ) 3,385,456 June 30, 2025 55,075 - 55,075 After June 30, 2025 15,974 - 15,974 Total payments $ 4,505,463 $ 236,274 $ (49,526 ) 4,692,211 Less current portion (634,846 ) Non-current portion $ 4,057,365 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Accounting Policies [Abstract] | ||
Cash and cash equivalents | $ 6,774,694 | $ 5,387,388 |
Retained earnings | $ (200,247,177) | $ (197,061,926) |
Revenue (Details)
Revenue (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues | $ 38,464,821 | $ 34,967,963 |
PMO | ||
Revenues | 15,882,189 | 14,639,687 |
Infrared Products | ||
Revenues | 20,971,080 | 18,052,856 |
Specialty Products | ||
Revenues | $ 1,611,552 | $ 2,275,420 |
Inventories (Details)
Inventories (Details) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 3,908,630 | $ 3,876,955 |
Work in process | 2,473,070 | 2,989,070 |
Finished goods | 3,467,105 | 3,134,800 |
Reserve for obsolescence | (1,189,218) | (1,016,343) |
Inventories, net | $ 8,659,587 | $ 8,984,482 |
Inventories (Details Narrative)
Inventories (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Inventory write-offs to reserves | $ 157,399 | $ 127,872 |
Raw materials | 3,908,630 | 3,876,955 |
Inventory - Tooling | ||
Raw materials | $ 2,000,000 | $ 2,300,000 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Total property and equipment, gross | $ 27,221,020 | $ 23,013,759 |
Less accumulated depreciation and amortization | (13,941,153) | (11,214,698) |
Total property and equipment, net | 13,279,867 | 11,799,061 |
Manufacturing Equipment | ||
Total property and equipment, gross | $ 21,465,402 | 18,444,448 |
Manufacturing Equipment | Lower Limit | ||
Estimated life | 5 years | |
Manufacturing Equipment | Upper Limit | ||
Estimated life | 10 years | |
Computer Equipment And Software | ||
Total property and equipment, gross | $ 918,679 | 801,625 |
Computer Equipment And Software | Lower Limit | ||
Estimated life | 3 years | |
Computer Equipment And Software | Upper Limit | ||
Estimated life | 5 years | |
Furniture And Fixtures | ||
Total property and equipment, gross | $ 362,944 | 321,418 |
Estimated life | 5 years | |
Leasehold Improvements | ||
Total property and equipment, gross | $ 2,944,543 | 2,171,388 |
Leasehold Improvements | Lower Limit | ||
Estimated life | 5 years | |
Leasehold Improvements | Upper Limit | ||
Estimated life | 7 years | |
Construction In Progress | ||
Total property and equipment, gross | $ 1,529,452 | $ 1,274,880 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Intangible assets, gross | $ 10,676,000 | $ 10,676,000 |
Amortization | (5,093,119) | (3,968,036) |
Intangible assets, net | 5,582,881 | 6,707,964 |
Customer Relationships | ||
Intangible assets, gross | $ 3,590,000 | 3,590,000 |
Useful life | 15 years | |
Trade Secrets | ||
Intangible assets, gross | $ 3,272,000 | 3,272,000 |
Useful life | 8 years | |
Trademark | ||
Intangible assets, gross | $ 3,814,000 | $ 3,814,000 |
Useful life | 8 years |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Details 1) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Fiscal year ended: | ||
June 30, 2022 | $ 1,125,083 | |
June 30, 2023 | 1,125,083 | |
June 30, 2024 | 1,125,083 | |
June 30, 2025 | 658,398 | |
After June 30, 2025 | 1,549,234 | |
Total | $ 5,582,881 | $ 6,707,964 |
Accounts Payable (Details Narra
Accounts Payable (Details Narrative) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Board of Directors [Member] | ||
Accounts payable - related parties for directors' fees | $ 99,500 | $ 91,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Income (loss) before income taxes | $ (2,251,336) | $ 1,630,927 |
United States | ||
Income (loss) before income taxes | (5,265,813) | (3,739,527) |
Foreign | ||
Income (loss) before income taxes | $ 3,014,477 | $ 5,370,454 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Current: | ||
Federal tax | $ 0 | $ 0 |
State | 18,563 | 3,047 |
Foreign | 403,352 | 767,951 |
Total current | 421,915 | 770,998 |
Deferred: | ||
Federal tax | 510,069 | 4,931 |
State | 1,931 | (11,931) |
Foreign | 0 | 0 |
Total deferred | 512,000 | (7,000) |
Total income tax (benefit) | $ 933,915 | $ 763,998 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
U.S. federal statutory tax rate | 21.00% | 21.00% |
Income tax provision reconciliation: | ||
Tax at statutory rate: | $ (472,782) | $ 342,495 |
Net foreign income subject to lower tax rate | (169,276) | (497,959) |
State income taxes, net of federal benefit | (196,719) | (75,415) |
Valuation allowance | (1,400,450) | 344,793 |
IRC 965 repatriation | 3,516,695 | (206,807) |
GILTI | 310,431 | 835,101 |
Federal research and development and other credits | (74,288) | (71,962) |
Stock-based compensation | (265,485) | 0 |
Other permanent differences | (67,893) | (183,367) |
Other, net | (246,318) | 277,119 |
Total income tax (benefit) | $ 933,915 | $ 763,998 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Deferred tax assets: | ||
Net operating loss and credit carryforwards | $ 13,585,000 | $ 16,039,000 |
Stock-based compensation | 563,000 | 868,000 |
R&D and other credits | 2,177,000 | 2,108,000 |
Capitalized R&D expenses | 564,000 | 487,000 |
Inventories | 253,000 | 218,000 |
Accrued expenses and other | 347,000 | 99,000 |
Gross deferred tax assets | 17,489,000 | 19,819,000 |
Valuation allowance for deferred tax assets | (15,644,000) | (17,044,000) |
Total deferred tax assets | 1,845,000 | 2,775,000 |
Deferred tax liabilities: | ||
Depreciation and other | (255,000) | (390,000) |
Intangible assets | (1,443,000) | (1,726,000) |
Total deferred tax liabilities | (1,698,000) | (2,116,000) |
Net deferred tax asset | $ 147,000 | $ 659,000 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Statutory income tax rate | 21.00% | 21.00% |
Income tax benefit | $ 933,915 | $ 763,998 |
Income tax receivable | 0 | |
Valuation allowance for deferred tax assets | 15,644,000 | 17,044,000 |
R&D and other credits | $ 2,177,000 | $ 2,108,000 |
CHINA | ||
Statutory income tax rate | 25.00% | |
LATVIA | ||
Statutory income tax rate | 25.00% | |
LPOIZ | CHINA | ||
Statutory income tax rate | 15.00% | 15.00% |
Compensatory Equity Incentive_3
Compensatory Equity Incentive Plan and Other Equity Incentives (Details) | Jun. 30, 2021shares |
Award shares, authorized | 5,515,625 |
Award shares, outstanding | 2,194,812 |
Available for issuance | 1,128,241 |
SICP (or Omnibus Plan) | |
Award shares, authorized | 5,115,625 |
Award shares, outstanding | 2,194,812 |
Available for issuance | 829,786 |
2014 ESPP | |
Award shares, authorized | 400,000 |
Award shares, outstanding | 0 |
Available for issuance | 298,455 |
Compensatory Equity Incentive_4
Compensatory Equity Incentive Plan and Other Equity Incentives (Details 1) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Weighted average expected volatility | 72.00% | 65.90% |
Dividend yields | 0.00% | 0.00% |
Weighted average risk free interest rate | 0.74% | 1.47% |
Weighted average expected term, in years | 7 years 5 months 26 days | 7 years 5 months 26 days |
Compensatory Equity Incentive_5
Compensatory Equity Incentive Plan and Other Equity Incentives (Details 2) - $ / shares | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Stock Options | ||
Balance, beginning, shares | 942,575 | 979,925 |
Granted, shares | 121,933 | 314,817 |
Exercised, shares | (225,137) | (29,356) |
Cancelled/Forfeited, shares | (406,444) | (322,811) |
Balance ending, shares | 432,927 | 942,575 |
Balance ending, shares exercisable and vested | 110,943 | |
Balance ending, shares unexercisable and unvested | 321,984 | 266,282 |
Weighted average exercise price - Stock Options | ||
Balance Beginning | $ 1.65 | $ 1.80 |
Granted | 2.97 | 1.60 |
Exercised | 1.50 | 1.35 |
Cancelled/Forfeited | 1.75 | 2.08 |
Balance Ending | 2.01 | $ 1.65 |
Exercisable - Balance Ending | 1.55 | |
Unexercisable/unvested - Balance Ending | $ 2.17 | |
Weighted average remaining contract life - Stock Options | ||
Balance Beginning | 6 years 6 months | 5 years 6 months |
Granted | 9 years 8 months 12 days | 9 years 7 months 6 days |
Balance Ending | 8 years 9 months 18 days | 6 years 6 months |
Exercisable/vested | 7 years 10 months 24 days | |
Unexercisable/unvested | 9 years 1 month 6 days | |
RSU Shares | ||
Balance, beginning | 2,328,303 | 1,864,526 |
Granted | 296,386 | 484,000 |
Exercised | (862,804) | (17,204) |
Cancelled/forfeited | 0 | (3,019) |
Balance, ending | 1,761,885 | 2,328,303 |
Balance, ending, shares exercisable and vested | 1,163,298 | |
Balance, ending, shares unexercisable/unvested | 598,587 | 669,526 |
Weighted average remaining contract life - Restricted Stock Units, beginning | 10 months 24 days | 10 months 24 days |
Weighted average remaining contract life - Restricted Stock Units, granted | 2 years 3 months 18 days | 2 years 4 months 24 days |
Weighted average remaining contract life - Restricted Stock Units, ending | 10 months 24 days | 10 months 24 days |
Weighted average remaining contract life unexercisable/unvested - Restricted Stock Units | 10 months 24 days |
Compensatory Equity Incentive_6
Compensatory Equity Incentive Plan and Other Equity Incentives (Details 3) | Jun. 30, 2021USD ($) |
Stock options | $ 355,515 |
Restricted stock units | 738,110 |
Total unrecognized compensation cost | 1,093,625 |
Year ended June 30, 2022 | |
Stock options | 110,128 |
Restricted stock units | 312,766 |
Total unrecognized compensation cost | 422,894 |
Year ended June 30, 2023 | |
Stock options | 116,986 |
Restricted stock units | 258,592 |
Total unrecognized compensation cost | 375,578 |
Year ended June 30, 2024 | |
Stock options | 94,516 |
Restricted stock units | 132,045 |
Total unrecognized compensation cost | 226,561 |
Year ended June 30, 2025 | |
Stock options | 33,885 |
Restricted stock units | 34,707 |
Total unrecognized compensation cost | $ 68,592 |
Compensatory Equity Incentive_7
Compensatory Equity Incentive Plan and Other Equity Incentives (Details 4) - $ / shares | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Stock Options | ||
Beginning Balance | 266,282 | 110,695 |
Granted | 121,933 | 314,817 |
Vested | (64,636) | (99,151) |
Cancelled/Forfeited | (1,595) | (60,079) |
Balance ending, shares unexercisable and unvested | 321,984 | 266,282 |
RSU Shares | ||
Beginning Balance | 669,526 | 400,144 |
Granted | 296,386 | 484,000 |
Vested | (367,325) | (203,147) |
Cancelled/Forfeited | 0 | (11,471) |
Balance, ending, shares unexercisable/unvested | 598,587 | 669,526 |
Total Shares | ||
Beginning Balance | 935,808 | 510,839 |
Granted | 418,319 | 798,817 |
Vested | (431,961) | (302,298) |
Cancelled/Forfeited | (1,595) | (71,550) |
Balance ending | 920,571 | 935,808 |
Weighted Average Grant Date Fair Values (per share) | ||
Beginning Balance | $ 1.10 | $ 2.09 |
Granted | 2.48 | .79 |
Vested | 1.39 | 1.78 |
Cancelled/Forfeited | 2.85 | 2.70 |
Ending Balance | $ 1.59 | $ 1.10 |
Compensatory Equity Incentive_8
Compensatory Equity Incentive Plan and Other Equity Incentives (Details 5) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Stock-based compensation | $ 642,865 | $ 250,738 |
Stock Options | ||
Stock-based compensation | 76,616 | (59,019) |
Restricted Stock Units | ||
Stock-based compensation | $ 566,249 | $ 309,757 |
Compensatory Equity Incentive_9
Compensatory Equity Incentive Plan and Other Equity Incentives (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | ||
Intrinsic value of options exercised | $ 344,000 | $ 35,000 |
Intrinsic value of options outstanding and exercisable | 285,000 | 1,200,000 |
Fair value of options vested | 142,000 | 94,000 |
Intrinsic value of RSUs exercised | 2,800,000 | 12,000 |
Intrinsic value of RSUs outstanding and exercisable | 3,000,000 | 5,500,000 |
Fair value of RSUs Vested | 1,100,000 | $ 443,000 |
Unrecognized compensation costs | $ 1,093,625 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||
Net income (loss) | $ (3,185,251) | $ 866,929 |
Basic number of shares | 26,314,025 | 25,853,419 |
Effect of dilutive securities: | ||
Options to purchase common stock | 0 | 7,026 |
RSUs | 0 | 1,609,400 |
Diluted number of shares | 26,314,025 | 27,469,845 |
Earnings (loss) per common share: | ||
Basic | $ (.12) | $ 0.03 |
Diluted | $ (.12) | $ 0.03 |
Leases (Details)
Leases (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 682,980 | $ 646,845 |
Finance lease cost, depreciation of lease assets | 207,931 | 324,058 |
Finance lease cost, interest on lease liabilities | 44,248 | 77,540 |
Total finance lease cost | 252,179 | 401,598 |
Total lease cost | $ 935,159 | $ 1,048,443 |
Leases (Details 1)
Leases (Details 1) - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Assets | |||
Operating lease assets | $ 9,015,498 | $ 1,220,430 | |
Finance lease assets | 477,102 | [1] | 666,519 |
Total lease assets | 9,492,600 | 1,886,949 | |
Liabilities | |||
Operating leases, current | 799,507 | 765,422 | |
Short-term leases, current | 0 | [2] | 97,665 |
Finance leases, current | 212,212 | 278,040 | |
Operating leases, noncurrent | 8,461,133 | 887,766 | |
Finance leases, noncurrent | 66,801 | 279,435 | |
Total lease liabilities | $ 9,539,653 | 2,308,328 | |
Weighted average remaining lease term (in years), operating leases | 10 years 10 months 24 days | ||
Weighted average remaining lease term (in years), finance leases | 1 year 4 months 24 days | ||
Weighted average discount rate, operating leases | 0.30% | ||
Weighted average discount rate, finance leases | 7.80% | ||
Operating cash used for operating leases | $ 869,668 | 790,199 | |
Operating cash used for finance leases | 44,247 | 77,553 | |
Financing cash used for finance leases | $ 278,462 | $ 487,223 | |
[1] | FInance lease assets are recorded net of accumulated depreciation of approximately $477,000 million as of June 30, 2021. | ||
[2] | Represents accrual related to the ISP Lease, which we ceased use of as of June 30, 2019. All remaining lease payments were accrued as of that date, through the ISP Lease expiration in August 2020. |
Leases (Details 2)
Leases (Details 2) | Jun. 30, 2021USD ($) |
Finance Lease - Fiscal year ending June 30, | |
June 30, 2022 | $ 231,783 |
June 30, 2023 | 59,647 |
June 30, 2024 | 11,811 |
June 30, 2025 | 0 |
Total minimum payments | 303,241 |
Less imputed interest | (24,228) |
Present value of lease liabilities | 279,013 |
Operating Lease - Fiscal Year ending June 30, | |
June 30, 2021 | 832,120 |
June 30, 2022 | 1,039,572 |
June 30, 2023 | 943,624 |
June 30, 2024 | 968,324 |
June 30, 2026 | 874,256 |
Thereafter | 6,219,941 |
Total minimum payments | 10,877,837 |
Less imputed interest | (1,617,197) |
Present value of lease liabilities | $ 9,260,640 |
Foreign Operations (Details)
Foreign Operations (Details) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Assets | $ 54,610,990 | $ 47,574,918 |
CHINA | ||
Assets | 20,100,000 | 19,000,000 |
Net assets | 16,600,000 | 16,200,000 |
LATVIA | ||
Assets | 11,300,000 | 9,800,000 |
Net assets | $ 9,000,000 | $ 8,200,000 |
Foreign Operations (Details Nar
Foreign Operations (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Foreign Currency [Abstract] | ||
Gain (loss) on foreign currency | $ (1,000) | $ (214,000) |
Gain (loss) on foreign transactions | $ 2,100,000 | $ 736,000 |
Supplier and Customer Concent_2
Supplier and Customer Concentrations (Details Narrative) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Customer 1 | Annual Revenue | ||
Concentrations | 18.00% | 15.00% |
Customer 1 | Accounts Receivable | ||
Concentrations | 21.00% | 18.00% |
Customer 2 | Annual Revenue | ||
Concentrations | 10.00% | 10.00% |
Customer 2 | Accounts Receivable | ||
Concentrations | 10.00% | 6.00% |
Customer 3 | Annual Revenue | ||
Concentrations | 10.00% | 6.00% |
Customer 3 | Accounts Receivable | ||
Concentrations | 6.00% | |
Foreign Sales | Annual Revenue | ||
Concentrations | 68.00% | 66.00% |
Loans Payable (Details)
Loans Payable (Details) - USD ($) | Jun. 30, 2021 | Jun. 30, 2020 |
Fiscal year ending June 30, | ||
2022 | $ 617,853 | |
2023 | 617,853 | |
2024 | 3,385,456 | |
2025 | 55,075 | |
After June 30, 2025 | 15,974 | |
Total payments | 4,692,211 | |
Less current portion | (634,846) | $ (981,350) |
Non-current portion | 4,057,365 | $ 4,437,365 |
Unamortized Debt Costs | ||
Fiscal year ending June 30, | ||
2022 | (18,572) | |
2023 | (18,572) | |
2024 | (12,382) | |
2025 | 0 | |
After June 30, 2025 | 0 | |
Total payments | (49,526) | |
BankUnited Term Loan | ||
Fiscal year ending June 30, | ||
2022 | 581,350 | |
2023 | 581,350 | |
2024 | 3,342,763 | |
2025 | 0 | |
After June 30, 2025 | 0 | |
Total payments | 4,505,463 | |
Equipment Loan | ||
Fiscal year ending June 30, | ||
2022 | 55,075 | |
2023 | 55,075 | |
2024 | 55,075 | |
2025 | 55,075 | |
After June 30, 2025 | 15,974 | |
Total payments | $ 236,274 |
Loans Payable (Details Narrativ
Loans Payable (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Loans Payable [Abstract] | ||
Amortization of debt costs | $ 18,572 | $ 18,572 |