10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2015

¨ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from    to

Commission File Number 2-5916

Chase General Corporation

(Exact name of small business issuer as specified in its charter)

	MISSOURI		36-2667734
(State or other jurisdiction of		(IRS Employer Identification No.)
incorporation or organization)

1307 South 59th, St. Joseph, Missouri 64507

(Address of principal executive offices, Zip Code)

(816) 279-1625

(Issuer’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 12, 13, or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant (1) has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ¨	Accelerated filer ¨
Non-accelerated filer ¨ (Do not check if a smaller reporting company)	Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934) Yes ¨ No x

As of November 11, 2015, there were 969,834 shares of common stock, $1.00 par value, outstanding.

Chase General Corporation and Subsidiary

quarterly report on form 10-q

table of contents

for the three months ended September 30, 2015

Part I	Financial Information
	Item 1.	Condensed Consolidated Financial Statements
		Condensed Consolidated Balance Sheets as of September 30, 2015 (unaudited) and June 30, 2015	1
		Condensed Consolidated Statements of Operations for the three months ended September 30, 2015 and 2014 (unaudited)	3
		Condensed Consolidated Statements of Cash Flows for the three months ended september 30, 2015 and 2014 (unaudited)	4
		Notes to condensed consolidated Financial Statements (unaudited)	5
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	9
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	14
	Item 4.	Controls and Procedures	14
Part II	Other Information
	Item 1.	Legal Proceedings	15
	Item 1A.	Risk Factors	15
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	15
	Item 3.	Defaults Upon Senior Securities	15
	Item 4.	Mine Safety Disclosures	15
	Item 5.	Other Information	15
	Item 6.	Exhibits	16
	Signatures		17

PART I. FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Chase General Corporation and Subsidiary

CONDENSED CONSOLIDATED BALANCE SHEETS

ASSETS

	September 30,		June 30,
	2015		2015
	(Unaudited)
CURRENT ASSETS
Cash and Cash Equivalents	$	29,912	$	84,204
Trade Receivables, Net of Allowance for Doubtful Accounts of $16,596 and $16,296, Respectively		699,168		187,607
Inventories:
Finished Goods		290,334		377,853
Goods in Process		10,959		13,815
Raw Materials		104,216		90,506
Packaging Materials		165,137		130,726
Prepaid Expenses		41,391		5,689
Deferred Income Taxes		7,077		7,288
Total Current Assets		1,348,194		897,688
PROPERTY AND EQUIPMENT
Land		35,000		35,000
Buildings		77,348		77,348
Machinery and Equipment		817,836		807,325
Trucks and Autos		212,100		198,845
Office Equipment		31,518		31,518
Leasehold Improvements		72,068		72,068
Total		1,245,870		1,222,104
Less Accumulated Depreciation		845,543		861,341
Total Property and Equipment, Net		400,327		360,763
Total Assets	$	1,748,521	$	1,258,451

The accompanying notes are an integral part of the unaudited

condensed consolidated financial statements.

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Chase General Corporation and Subsidiary

CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)

LIABILITIES AND STOCKHOLDERS’ EQUITY

	September 30,			June 30,
	2015			2015
	(Unaudited)
CURRENT LIABILITIES
Accounts Payable	$	333,751		$	111,944
Current Maturities of Notes Payable		235,749			8,297
Accrued Expenses		47,942			17,966
Income Taxes Payable		8,691			26,119
Deferred Income		1,299			1,299
Total Current Liabilities		627,432			165,625
LONG-TERM LIABILITIES
Deferred Income		11,038			11,362
Notes Payable, Less Current Maturities		49,811			14,004
Deferred Income Taxes		95,392			98,866
Total Long-Term Liabilities		156,241			124,232
Total Liabilities		783,673			289,857
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Capital Stock Issued and Outstanding:
Prior Cumulative Preferred Stock, $5 Par Value:
Series A (Liquidation Preference $2,227,500 and $2,220,000, Respectively)		500,000			500,000
Series B (Liquidation Preference $2,182,500 and $2,175,000, Respectively)		500,000			500,000
Cumulative Preferred Stock, $20 Par Value:
Series A (Liquidation Preference $5,033,830 and $5,019,197, Respectively)		1,170,660			1,170,660
Series B (Liquidation Preference $820,362 and $817,977, Respectively)		190,780			190,780
Common Stock, $1 Par Value		969,834			969,834
Paid-In Capital in Excess of Par		3,134,722			3,134,722
Accumulated Deficit		(5,501,148	)		(5,497,402	)
Total Stockholders' Equity		964,848			968,594
Total Liabilities and Stockholders' Equity	$	1,748,521		$	1,258,451

The accompanying notes are an integral part of the unaudited

condensed consolidated financial statements.

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Chase General Corporation and Subsidiary

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	Three Months Ended
	September 30
	2015			2014
NET SALES	$	1,063,103		$	991,908
COST OF SALES		843,383			715,070
Gross Profit on Sales		219,720			276,838
OPERATING EXPENSES
Selling		122,776			114,641
General and Administrative		115,051			121,381
Gain on Sale of Equipment		(12,374	)		-
Total Operating Expenses		225,453			236,022
Income (Loss) from Operations		(5,733	)		40,816
OTHER INCOME (EXPENSE)
Miscellaneous Income		378			12,022
Interest Expense		(271	)		(887	)
Total Other Income (Expense), Net		107			11,135
Income (Loss) before Income Taxes		(5,626	)		51,951
PROVISION (BENEFIT) FOR INCOME TAXES		(1,880	)		17,250
NET INCOME (LOSS)	$	(3,746	)	$	34,701
NET LOSS PER SHARE OF COMMON STOCK
Basic	$	(0.04	)	$	0.00
Diluted	$	(0.04	)	$	0.00

The accompanying notes are an integral part of the unaudited

condensed consolidated financial statements.

3

Chase General Corporation and Subsidiary

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Three Months Ended
	September 30
	2015			2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)	$	(3,746	)	$	34,701
Adjustments to Reconcile Net Income (Loss) to Net Cash Used by Operating Activities:
Depreciation and Amortization		29,574			21,814
Allowance for Bad Debts		300			300
Deferred Income Amortization		(324	)		(324	)
Deferred Income Taxes		(3,263	)		(7,405	)
(Gain) on Sale of Equipment		(12,374	)		-
Effects of Changes in Operating Assets and Liabilities:
Trade Receivables		(511,861	)		(508,492	)
Inventories		42,254			(11,934	)
Prepaid Expenses		(35,702	)		(1,450	)
Accounts Payable		221,807			288,401
Accrued Expenses		29,976			(96,871	)
Income Taxes Payable		(17,428	)		8,722
Net Cash Used by Operating Activities		(260,787	)		(272,538	)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of Property and Equipment		(14,082	)		(11,386	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Line-of-Credit		225,000			135,000
Principal Payments on Notes Payable		(4,423	)		(11,705	)
Net Cash Provided by Financing Activities		220,577			123,295
NET DECREASE IN CASH AND CASH EQUIVALENTS		(54,292	)		(160,629	)
Cash and Cash Equivalents - Beginning of Period		84,204			162,435
CASH AND CASH EQUIVALENTS - END OF PERIOD	$	29,912		$	1,806

The accompanying notes are an integral part of the unaudited

condensed consolidated financial statements.

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Chase General Corporation and Subsidiary

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 1 GENERAL

The condensed consolidated balance sheet of Chase General Corporation (hereinafter referred to as “Chase”, “we”, “our”, and “us”) at June 30, 2015 has been taken from audited consolidated financial statements at that date and condensed. The condensed consolidated financial statements as of and for the three months ended September 30, 2015 and for the three months ended September 30, 2014 are unaudited and reflect all normal and recurring accruals and adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position, operating results and cash flows for the interim periods presented in this quarterly report. The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto, together with management’s discussion and analysis of financial condition and results of operations, contained in our Annual Report on Form 10-K for the year ended June 30, 2015. The results of operations for the three months ended September 30, 2015 and cash flows for the three months ended September 30, 2015 are not necessarily indicative of the results for the entire fiscal year ending June 30, 2016. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary to fairly present financial position, results of operations and cash flows for the periods have been included.

No events have occurred subsequent to September 30, 2015, through the date of filing this form, that would require disclosure in this Form 10-Q or would be required to be recognized in the condensed consolidated financial statements as of or for the three month period ended September 30, 2015.

NOTE 2 EARNINGS PER SHARE

The income per share was computed on the weighted average of outstanding common shares during the period.

	Three Months Ended
	September 30
	2015			2014
Net Income (Loss)	$	(3,746	)	$	34,701
Preferred Dividend Requirements:
6% Prior Cumulative Preferred, $5 Par Value		15,000			15,000
5% Convertible Cumulative Preferred, $20 Par Value		17,018			17,018
Total Dividend Requirements		32,018			32,018
Net Income (Loss) - Common Stockholders	$	(35,764	)	$	2,683

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Chase General Corporation and Subsidiary

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 2 EARNINGS PER SHARE (CONTINUED)

Diluted earnings per share are calculated by including contingently issuable shares with the weighted average shares outstanding.

	Three Months Ended
	September 30
	2015			2014
Weighted Average Shares - Basic		969,834			969,834
Dilutive Effect of Contingently Issuable Shares		1,033,334			1,033,334
Weighted Average Shares – Diluted		2,003,168			2,003,168
Basic Earnings (Loss) per Share	$	(0.04	)	$	0.00
Diluted Earnings (Loss) per Share	$	(0.04	)	$	0.00

The contingently issuable shares were not included in diluted earnings per common share as they would have an antidilutive effect upon earnings per share. Cumulative Preferred Stock dividends in arrears at September 30, 2015 and 2014 totaled $7,852,752 and $7,724,680, respectively. Total dividends in arrears, on a per share basis, consist of the following:

	Three Months Ended
	September 30
	2015		2014
6% Convertible
Series A	$	17	$	17
Series B		17		16
5% Convertible
Series A	$	66	$	65
Series B		66		65

The 6% convertible prior cumulative preferred stock may, upon thirty days prior notice, be redeemed by the Corporation at $5.25 a share plus unpaid accrued dividends to date of redemption. In the event of voluntary liquidation, holders of this stock are entitled to receive $5.25 per share plus accrued dividends. It may be exchanged for common stock at the option of the shareholders in the ratio of 4 common shares for one share of Series A and 3.75 common shares for one share of Series B.

The Company has the privilege of redemption of 5% convertible cumulative preferred stock at $21.00 a share plus unpaid accrued dividends. In the event of voluntary or involuntary liquidation, holders of this stock are entitled to receive $20.00 a share plus unpaid accrued dividends. It may be exchanged for common stock at the option of the shareholders, in the ratio of 3.795 common shares for one of preferred.

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Chase General Corporation and Subsidiary

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 3 NOTES PAYABLE

The Company’s long-term debt consists of:

		September 30,		June 30,
Payee	Terms	2015		2015
Nodaway Valley Bank	$350,000 line-of-credit agreement expiring on January 3, 2016, with a variable interest rate at prime but not less than 5%.  The line-of-credit is collateralized by substantially all assets of the Company.	$	225,000	$	-
Ford Credit	$468 monthly payments, interest of 2.9%; final payment due January 2019, secured by a vehicle.		17,878		19,151
Ford Credit	$705 monthly payments, interest of 5.8%; final payment due October 2020, secured by a vehicle.		42,682		-
Ford Credit	$517 monthly payments, interest of 0%; final payment due March 2016, secured by a vehicle.		-		3,150
	Total		285,560		22,301
	Less Current Portion		235,749		8,297
	Long-Term Portion	$	49,811	$	14,004

Future minimum payments for the twelve months ending September 30 are:

2016	$	235,749
2017		11,796
2018		12,340
2019		9,123
2020		7,694
Thereafter		8,858
Total	$	285,560

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Chase General Corporation and Subsidiary

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 4 INCOME TAXES

The Company follows the provisions for uncertain tax positions as addressed in Financial Accounting Standards Board Accounting Standards Codification 740-10. The Company recognized no liability for unrecognized tax benefits at September 30, 2015. The Company has no material tax positions at September 30, 2015 for which the ultimate deductibility is highly certain, but for which there is uncertainty about the timing of such deductibility. The Company’s federal income tax returns for the fiscal years ended 2013, 2014 and 2015 are subject to examination by the IRS taxing authority.

NOTE 5 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

	Three Months Ended
	September 30
	2015		2014
Cash Paid for:
Interest	$	136	$	887
Income Taxes	$	27,700	$	15,933
Noncash Transactions:
Financing of New Vehicles	$	42,682	$	-

NOTE 6 RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In May 2014, the Financial Accounting Standards Board issued new accounting guidance for the recognition of revenue from contracts with customers, which will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company’s fiscal year 2019, and early adoption is not permitted. The Company is evaluating the effect the new guidance will have on its consolidated financial statements and related disclosures. The Company has not yet determined the effect of the standard on its ongoing financial reporting.

There have been no other newly issued or newly applicable accounting pronouncements that have, or are expected to have, a significant impact on the Company’s financial statements.

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Chase General Corporation and Subsidiary

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

OVERVIEW

Chase General Corporation (Chase) is a holding company for its wholly-owned subsidiary, Dye Candy Company. This subsidiary is the main operating company that is engaged in the manufacture of confectionery products which are sold primarily to wholesale houses, grocery accounts, vendors, and repackers. The subsidiary (Company) operates two divisions, Chase Candy division and Seasonal Candy division, which share a common labor force and utilize the same basic equipment and raw materials. Therefore, segment reporting for the two divisions is not maintained by management.

The Company’s business, like that of many other confectionary product manufacturers, is seasonal. Historically, the Company has realized more of its revenue and earnings in the fiscal second quarter, which includes the majority of the holiday shopping season, than in any other fiscal quarter.

RESULTS OF OPERATIONS - Three Months Ended September 30, 2015 Compared with Three Months Ended September 30, 2014

The following management comments regarding Chase’s results of operations and outlook should be read in conjunction with the condensed consolidated financial statements included pursuant to Item 1 of the quarterly report.

The following table sets forth certain items as a percentage of net sales and revenues for the periods presented:

	Three Months Ended
	September 30
	2015			2014
Net Sales		100	%		100	%
Cost of Sales		79			72
Gross Profit on Sales		21			28
Operating Expenses		21			24
Income (Loss) from Operations		(1	)		4
Other Income (Expense), Net		0			1
Income (Loss) before Income Taxes		(1	)		5
Provision (Benefit) for Income Taxes		(0	)		2
Net Income (Loss)		-			3	%

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Chase General Corporation and Subsidiary

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

NET SALES

Net sales increased $71,195 or 7% for the three months ended September 30, 2015 to $1,063,103 compared to $991,908 for the three months ended September 30, 2014. Gross sales for Seasonal Candy increased $72,404 to $580,028 for the three months ended September 30, 2015, compared to $507,624 for 2014. Gross sales for Chase Candy decreased $95 to $491,985 for the three months ended September 30, 2015, compared to $492,080 for 2014. Sales returns and allowances for the Company increased $926 to $9,636 for the three months ended September 30, 2015, compared to $8,710 for 2014.

The 14% increase in gross sales of Seasonal Candy of $72,404 for the three months ended September 30, 2015 over the same period ended September 30, 2014, is primarily due to the following: 1) increased volume from various customers in the clamshell seasonal division totaling approximately $15,000 versus the same period a year ago primarily due to earlier shipments; 2) increased orders from various customers in the generic seasonal division netting approximately $45,000 versus the same period a year ago primarily due to new customers; and 3) increased orders in the bulk seasonal division totaling approximately $12,000 due to increased sales to existing customers.

The .02% decrease in gross sales of Chase Candy of $95 for the three months ended September 30, 2015 over the same period ended September 30, 2014, is primarily due to the net effect of the following: 1) decreased sales of the L276 Cherry Mash Distributor Pack division by approximately $25,000 versus the same period a year ago primarily due to earlier shipments; 2) other fluctuations netting to a decrease of approximately $5,900; offset by 3) increased sales of the L212 Mini Mash division by approximately $20,000 versus the same period a year ago due to one customer increasing their orders and 4) increased sales of L100, L200, SK436, and SK2100 Cherry Mash Merchandisers division by approximately $11,000 versus the same period a year ago due to increased orders from existing customers.

COST OF SALES

The cost of sales increased $128,313 to $843,383, or 79% of related sales for the three months ended September 30, 2015 compared to $715,070, or 72% of related sales for the three months ended September 30, 2014.

The 18% increase in cost of sales of $128,313 is primarily due to the 7% increase in net sales of $71,195, a 10% increase in the raw material cost of peanuts, and a 1% increase in the raw material cost of sugar. Due to volatility in the regions where these raw materials are grown, management anticipates the prices of these raw materials to continue to fluctuate primarily based on supply and demand.

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Chase General Corporation and Subsidiary

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

SELLING EXPENSES

Selling expenses for the three months ended September 30, 2015 increased $8,135 to $122,776, which is 12% of sales, compared to $114,641 or 12% of sales for the three months ended September 30, 2014.

The increase of $8,135 in selling expenses for the three months ended September 30, 2015 is primarily due to higher truck and automobile depreciation expense and higher commissions expense for the period. Truck and automobile depreciation expense increased $3,887 to $13,081 for this period from $9,638 for the three months ended September 30, 2014. Commission expense increased $2,478 to $41,585 for this period from $39,107 for the three months ended September 30, 2014 primarily due to an increase in net sales and to a change in the mix of net sales.

GENERAL AND ADMINISTRATIVE EXPENSES

General and administrative expenses for the three months ended September 30, 2015 decreased $6,330 to $115,051 and decreased to 11% of sales, compared to $121,381 or 12% of sales for the three months ended September 30, 2014. The decreased costs are primarily because of a decrease in insurance expense. Insurance expense decreased $10,536 to $22,357 for this period from $32,893 for the three months ended September 30, 2015 due to a few employees declining health insurance coverage.

OTHER INCOME (EXPENSE)

Other income and (expense) decreased by $11,028 for the three months ended September 30, 2015 to $107, compared to $11,135 for the three months ended September 30, 2014 primarily due to a decrease in interest expense of $614, a freight claim of approximately $4,000 and a refund of approximately $7,000 from a customer related to a underpayment written off during the year ended June 30, 2014.

PROVISION (BENEFIT) FOR INCOME TAXES

The Company recorded a provision for income tax benefit for the three months ended September 30, 2015 of $1,880 as compared to tax expense of $17,250 for the three months ended September 30, 2014. The income tax benefit recorded for the three months ended September 30, 2015 is primarily due to a decrease in deferred tax liabilities.

NET INCOME (LOSS)

The Company reported a net loss for the three months ended September 30, 2015 of $(19,392), compared to net income of $34,701 for the three months ended September 30, 2014. This decrease of $54,093 is explained above.

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Chase General Corporation and Subsidiary

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

PREFERRED DIVIDENDS

Preferred dividends were $32,018 for the three months ended September 30, 2015 and 2014, which reflects additional preferred stock dividends in arrears on the Company’s Series A and Series B $5 par value preferred stock and its Series A and Series B $20 par value preferred stock.

NET INCOME (LOSS) APPLICABLE TO COMMON STOCKHOLDERS

Net loss applicable to common stockholders for the three months ended September 30, 2015 was $51,410 which is an decrease of $54,093 as compared to the net income for the three months ended September 30, 2014 of $2,683.

LIQUIDITY AND CAPITAL RESOURCES

The table below presents the summary of cash flow for the fiscal year indicated.

	Three Months Ended
	September 30
	2015			2014
Net Cash Used in Operating Activities	$	(260,787	)	$	(272,538	)
Net Cash Used in Investing Activities		(14,082	)		(11,386	)
Net Cash Provided by Financing Activities		220,577			123,295

Management has no material commitments for capital expenditures during the remainder of fiscal 2016. The $14,082 of cash used in investing activities is the purchase of equipment used during the manufacturing process. The $260,787 of cash used in operating activities is fully detailed in the condensed consolidated statement of cash flows on page four. The $220,577 of cash provided by financing activities is primarily due to the receipt of $225,000 drawn from a line-of-credit, net of principal payments on equipment and vehicle loans. At September 30, 2015, the Company had $125,000 remaining on the line-of-credit, which could be utilized to help fund any working capital requirements. Management expects that projected cash flows will enable the Company to pay the full balance on the line-of-credit prior to December 31, 2015.

Management believes that the projected cash flow from operations, combined with its existing cash balances, will be sufficient to meet its funding requirements for the foreseeable future.

Management believes that inflation will have only a minimal effect on future operations since such effects will generally be offset by sales price increases, which are not expected to have a significant effect upon demand.

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Chase General Corporation and Subsidiary

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

CRITICAL ACCOUNTING POLICIES

Forward-Looking Information

This report, as well as our other reports filed with the Securities and Exchange Commission (“SEC”), contains forward-looking statements made pursuant to the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. The words “believe,” “estimate,” “anticipate,” “project,” “intend,” “expect,” “plan,” “outlook,” “forecast,” “may,” “will,” “should,” “continue,” “predict” and similar expressions are intended to identify forward-looking statements. This report contains forward-looking statements regarding, among other topics, our expected financial position, results of operations, cash flows, strategy, and management’s plans and objectives. Accordingly, these forward-looking statements are based on assumptions about a number of important factors. While we believe that our assumptions about such factors are reasonable, such factors involve risks and uncertainties that could cause actual results to be different from what appear here. These risk factors include: the ability to adequately pass through customers unanticipated future increases in raw material costs, decreased demand for products, expected orders that do not occur, loss of key customers, the impact of competition and price erosion as well as supply and manufacturing constraints, and other risks and uncertainties. In light of these risks and uncertainties, there can be no assurance that the forward-looking information contained in this report will prove accurate, and our actual results may differ materially from these forward-looking statements. We assume no obligation to update any forward-looking statements made herein.

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Chase General Corporation and Subsidiary

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable to a smaller reporting company.

ITEM 4. CONTROLS AND PROCEDURES

(a) Evaluation of Disclosure Controls and Procedures

Chase’s management, with the participation of the Chief Executive Officer, has evaluated the effectiveness of Chase’s disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of the end of the period covered by this report. Based on such evaluation, the Chief Executive Officer and management has concluded that Chase’s disclosure controls and procedures are effective to provide reasonable assurance that information required to be disclosed in periodic filings under the Exchange Act is accumulated and communicated to management, including those officers, and to members of the Board of Directors, to allow timely decisions regarding required disclosure.

(b) Changes in Internal Control over Financial Reporting

There were no significant changes in Chase’s internal control over financial reporting or in other factors that in management’s estimates are reasonably likely to materially affect Chase’s internal control over financial reporting subsequent to the date of the evaluation.

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Chase General Corporation and Subsidiary

Part II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

None.

ITEM 1A. RISK FACTORS

Not applicable to a smaller reporting company.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

a. None

b. The total cumulative preferred stock dividends contingency at September 30, 2015 is $7,852,752.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None

15

Chase General Corporation and Subsidiary

Part II. OTHER INFORMATION (CONTINUED)

ITEM 6. EXHIBITS

Exhibit 31.1 Certification of Chief Executive Officer and Financial Officer Pursuant to Rules 13A-14(A) and 15D-14(A) Under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Exhibit 32.1 Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

Exhibit 101 The following financial statements for the quarter ended September 30, 2015, formatted in XBRL: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statements of Cash Flows, and (iv) the Notes to Condensed Consolidated Financial Statements, tagged as blocks of text.

16

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Chase General Corporation and Subsidiary
	(Registrant)
November 12, 2015	/s/ Barry M. Yantis
Date	Barry M. Yantis
	Chairman of the Board, Chief Executive Officer and
	Chief Financial Officer, President and Treasurer

17

EX-31.1

EXHIBIT 31.1

CHASE GENERAL CORPORATION

CERTIFICATION OF CHIEF EXECUTIVE AND FINANCIAL OFFICER

PURSUANT TO RULES 13A-14(A) AND 15D-14(A) UNDER THE SECURITIES EXCHANGE

ACT OF 1934, AS ADOPTED PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

I, Barry M. Yantis, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Chase General Corporation.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. I am the certifying officer responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiary, is made known to me by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusion about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

5. I am the certifying officer and I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

November 12, 2015	/s/ Barry M. Yantis
Date	Barry M. Yantis
	Chief Executive Officer and Chief Financial Officer,
	President and Treasurer

EX-32.1

EXHIBIT 32.1

CHASE GENERAL CORPORATION

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the quarterly report of Chase General Corporation (the “Company”) on Form 10-Q for the period ended September 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, Barry M. Yantis, as Chief Executive Officer and Chief Financial Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

November 12, 2015	/s/ Barry M. Yantis
Date	Barry M. Yantis
	Chairman of the Board, Chief Executive Officer and
	Chief Financial Officer, President and Treasurer

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INCOME TAXES

3 Months Ended

Sep. 30, 2015

Income Tax Disclosure [Abstract]

INCOME TAXES

NOTE 4 INCOME TAXES

The Company follows the provisions for uncertain tax positions as addressed in Financial Accounting Standards Board Accounting Standards Codification 740-10. The Company recognized no liability for unrecognized tax benefits at September 30, 2015. The Company has no material tax positions at September 30, 2015 for which the ultimate deductibility is highly certain, but for which there is uncertainty about the timing of such deductibility. The Company’s federal income tax returns for the fiscal years ended 2013, 2014 and 2015 are subject to examination by the IRS taxing authority.

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NOTES PAYABLE

3 Months Ended

Sep. 30, 2015

Notes Payable [Abstract]

NOTES PAYABLE

NOTE 3 NOTES PAYABLE

The Company’s long-term debt consists of:

		September 30,		June 30,
Payee	Terms	2015		2015
Nodaway Valley Bank	$350,000 line-of-credit agreement expiring on January 3, 2016, with a variable interest rate at prime but not less than 5%.  The line-of-credit is collateralized by substantially all assets of the Company.	$	225,000	$	-
Ford Credit	$468 monthly payments, interest of 2.9%; final payment due January 2019, secured by a vehicle.		17,878		19,151
Ford Credit	$705 monthly payments, interest of 5.8%; final payment due October 2020, secured by a vehicle.		42,682		-
Ford Credit	$517 monthly payments, interest of 0%; final payment due March 2016, secured by a vehicle.		-		3,150
	Total		285,560		22,301
	Less Current Portion		235,749		8,297
	Long-Term Portion	$	49,811	$	14,004

Future minimum payments for the twelve months ending September 30 are:

2016	$	235,749
2017		11,796
2018		12,340
2019		9,123
2020		7,694
Thereafter		8,858
Total	$	285,560

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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2015	Jun. 30, 2015
CURRENT ASSETS
Cash and Cash Equivalents	$ 29,912	$ 84,204
Trade Receivables, Net of Allowance for Doubtful Accounts of $16,596 and $16,296, Respectively	699,168	187,607
Inventories:
Finished Goods	290,334	377,853
Goods in Process	10,959	13,815
Raw Materials	104,216	90,506
Packaging Materials	165,137	130,726
Prepaid Expenses	41,391	5,689
Deferred Income Taxes	7,077	7,288
Total Current Assets	1,348,194	897,688
PROPERTY AND EQUIPMENT
Land	35,000	35,000
Buildings	77,348	77,348
Machinery and Equipment	817,836	807,325
Trucks and Autos	212,100	198,845
Office Equipment	31,518	31,518
Leasehold Improvements	72,068	72,068
Total	1,245,870	1,222,104
Less Accumulated Depreciation	845,543	861,341
Total Property and Equipment, Net	400,327	360,763
Total Assets	1,748,521	1,258,451
CURRENT LIABILITIES
Accounts Payable	333,751	111,944
Current Maturities of Notes Payable	235,749	8,297
Accrued Expenses	47,942	17,966
Income Taxes Payable	8,691	26,119
Deferred Income	1,299	1,299
Total Current Liabilities	627,432	165,625
LONG-TERM LIABILITIES
Deferred Income	11,038	11,362
Notes Payable, Less Current Maturities	49,811	14,004
Deferred Income Taxes	95,392	98,866
Total Long-Term Liabilities	156,241	124,232
Total Liabilities	$ 783,673	$ 289,857
COMMITMENTS AND CONTINGENCIES
Capital Stock Issued and Outstanding:
Common Stock, $1 Par Value	$ 969,834	$ 969,834
Paid-In Capital in Excess of Par	3,134,722	3,134,722
Accumulated Deficit	(5,501,148)	(5,497,402)
Total Stockholders' Equity	964,848	968,594
Total Liabilities and Stockholders' Equity	1,748,521	1,258,451
Prior Cumulative Preferred Stock, $5 Par Value | Series A
Capital Stock Issued and Outstanding:
Preferred stock, value	500,000	500,000
Prior Cumulative Preferred Stock, $5 Par Value | Series B
Capital Stock Issued and Outstanding:
Preferred stock, value	500,000	500,000
Cumulative Preferred Stock, $20 Par Value | Series A
Capital Stock Issued and Outstanding:
Preferred stock, value	1,170,660	1,170,660
Cumulative Preferred Stock, $20 Par Value | Series B
Capital Stock Issued and Outstanding:
Preferred stock, value	$ 190,780	$ 190,780

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GENERAL

3 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

GENERAL

NOTE 1 GENERAL

The condensed consolidated balance sheet of Chase General Corporation (hereinafter referred to as “Chase”, “we”, “our”, and “us”) at June 30, 2015 has been taken from audited consolidated financial statements at that date and condensed. The condensed consolidated financial statements as of and for the three months ended September 30, 2015 and for the three months ended September 30, 2014 are unaudited and reflect all normal and recurring accruals and adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position, operating results and cash flows for the interim periods presented in this quarterly report. The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto, together with management’s discussion and analysis of financial condition and results of operations, contained in our Annual Report on Form 10-K for the year ended June 30, 2015. The results of operations for the three months ended September 30, 2015 and cash flows for the three months ended September 30, 2015 are not necessarily indicative of the results for the entire fiscal year ending June 30, 2016. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary to fairly present financial position, results of operations and cash flows for the periods have been included.

No events have occurred subsequent to September 30, 2015, through the date of filing this form, that would require disclosure in this Form 10-Q or would be required to be recognized in the condensed consolidated financial statements as of or for the three month period ended September 30, 2015.

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NOTES PAYABLE - Future minimum payments (Details 1) - USD ($)	Sep. 30, 2015	Jun. 30, 2015
Notes Payable [Abstract]
2016	$ 235,749
2017	11,796
2018	12,340
2019	9,123
2020	7,694
Thereafter	8,858
Total	$ 285,560	$ 22,301

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EARNINGS PER SHARE

3 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

EARNINGS PER SHARE

NOTE 2 EARNINGS PER SHARE

The income per share was computed on the weighted average of outstanding common shares during the period.

	Three Months Ended
	September 30
	2015			2014
Net Income (Loss)	$	(3,746	)	$	34,701
Preferred Dividend Requirements:
6% Prior Cumulative Preferred, $5 Par Value		15,000			15,000
5% Convertible Cumulative Preferred, $20 Par Value		17,018			17,018
Total Dividend Requirements		32,018			32,018
Net Income (Loss) - Common Stockholders	$	(35,764	)	$	2,683

Diluted earnings per share are calculated by including contingently issuable shares with the weighted average shares outstanding.

	Three Months Ended
	September 30
	2015			2014
Weighted Average Shares - Basic		969,834			969,834
Dilutive Effect of Contingently Issuable Shares		1,033,334			1,033,334
Weighted Average Shares – Diluted		2,003,168			2,003,168
Basic Earnings (Loss) per Share	$	(0.04	)	$	0.00
Diluted Earnings (Loss) per Share	$	(0.04	)	$	0.00

The contingently issuable shares were not included in diluted earnings per common share as they would have an antidilutive effect upon earnings per share. Cumulative Preferred Stock dividends in arrears at September 30, 2015 and 2014 totaled $7,852,752 and $7,724,680, respectively. Total dividends in arrears, on a per share basis, consist of the following:

	Three Months Ended
	September 30
	2015		2014
6% Convertible
Series A	$	17	$	17
Series B		17		16
5% Convertible
Series A	$	66	$	65
Series B		66		65

The 6% convertible prior cumulative preferred stock may, upon thirty days prior notice, be redeemed by the Corporation at $5.25 a share plus unpaid accrued dividends to date of redemption. In the event of voluntary liquidation, holders of this stock are entitled to receive $5.25 per share plus accrued dividends. It may be exchanged for common stock at the option of the shareholders in the ratio of 4 common shares for one share of Series A and 3.75 common shares for one share of Series B.

The Company has the privilege of redemption of 5% convertible cumulative preferred stock at $21.00 a share plus unpaid accrued dividends. In the event of voluntary or involuntary liquidation, holders of this stock are entitled to receive $20.00 a share plus unpaid accrued dividends. It may be exchanged for common stock at the option of the shareholders, in the ratio of 3.795 common shares for one of preferred.

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CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($)	Sep. 30, 2015	Jun. 30, 2015
Allowance for doubtful accounts on trade receivables (in dollars)	$ 16,596	$ 16,296
Common stock, par value (in dollars per share)	$ 1	$ 1
Prior Cumulative Preferred Stock, $5 Par Value | Series A
Preferred stock, par value (in dollars per share)	$ 5	$ 5
Preferred stock, liquidation preference (in dollars)	$ 2,227,500	$ 2,220,000
Prior Cumulative Preferred Stock, $5 Par Value | Series B
Preferred stock, par value (in dollars per share)	$ 5	$ 5
Preferred stock, liquidation preference (in dollars)	$ 2,182,500	$ 2,175,000
Cumulative Preferred Stock, $20 Par Value | Series A
Preferred stock, par value (in dollars per share)	$ 20	$ 20
Preferred stock, liquidation preference (in dollars)	$ 5,033,830	$ 5,019,197
Cumulative Preferred Stock, $20 Par Value | Series B
Preferred stock, par value (in dollars per share)	$ 20	$ 20
Preferred stock, liquidation preference (in dollars)	$ 820,362	$ 817,977

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EARNINGS PER SHARE (Details 1) - $ / shares	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Weighted Average Shares - Basic (in shares)	969,834	969,834
Dilutive Effect of Contingently Issuable Shares (in shares)	1,033,334	1,033,334
Weighted Average Shares - Diluted (in shares)	2,003,168	2,003,168
Basic Earnings (Loss) per Share (in dollars per share)	$ (0.04)	$ 0.00
Diluted Earnings (Loss) per Share (in dollars per share)	$ (0.04)	$ 0.00

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Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2015	Nov. 11, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	CHASE GENERAL CORP
Entity Central Index Key	0000015357
Current Fiscal Year End Date	--06-30
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		969,834
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1

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EARNINGS PER SHARE (Details 2) - $ / shares	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
6% Prior Convertible Cumulative Preferred Stock - Series A
Class of Stock [Line Items]
Cumulative preferred stock dividends in arrears	$ 17	$ 17
6% Prior Convertible Cumulative Preferred Stock - Series B
Class of Stock [Line Items]
Cumulative preferred stock dividends in arrears	17	16
5% Convertible Cumulative Preferred Stock - Series A
Class of Stock [Line Items]
Cumulative preferred stock dividends in arrears	66	65
5% Convertible Cumulative Preferred Stock - Series B
Class of Stock [Line Items]
Cumulative preferred stock dividends in arrears	$ 66	$ 65

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
NET SALES	$ 1,063,103	$ 991,908
COST OF SALES	843,383	715,070
Gross Profit on Sales	219,720	276,838
OPERATING EXPENSES
Selling	122,776	114,641
General and Administrative	115,051	$ 121,381
Gain on Sale of Equipment	(12,374)
Total Operating Expenses	225,453	$ 236,022
Income (Loss) from Operations	(5,733)	40,816
OTHER INCOME (EXPENSE)
Miscellaneous Income	378	12,022
Interest Expense	(271)	(887)
Total Other Income (Expense), Net	107	11,135
Income (Loss) before Income Taxes	(5,626)	51,951
PROVISION (BENEFIT) FOR INCOME TAXES	(1,880)	17,250
NET INCOME (LOSS)	$ (3,746)	$ 34,701
NET LOSS PER SHARE OF COMMON STOCK
Basic (in dollars per share)	$ (0.04)	$ 0.00
Diluted (in dollars per share)	$ (0.04)	$ 0.00

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EARNINGS PER SHARE (Tables)

3 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Schedule of income per share computed on the weighted average of outstanding common shares

	Three Months Ended
		September 30
		2015			2014
Net Income (Loss)		$	(3,746	)	$	34,701
Preferred Dividend Requirements:
6% Prior Cumulative Preferred, $5 Par Value			15,000			15,000
5% Convertible Cumulative Preferred, $20 Par Value			17,018			17,018
Total Dividend Requirements			32,018			32,018
Net Income (Loss) - Common Stockholders		$	(35,764	)	$	2,683

Schedule of diluted earnings per share calculated by including contingently issuable shares with the weighted average shares outstanding

	Three Months Ended
	September 30
	2015			2014
Weighted Average Shares - Basic		969,834			969,834
Dilutive Effect of Contingently Issuable Shares		1,033,334			1,033,334
Weighted Average Shares – Diluted		2,003,168			2,003,168
Basic Earnings (Loss) per Share	$	(0.04	)	$	0.00
Diluted Earnings (Loss) per Share	$	(0.04	)	$	0.00

Schedule of total dividends in arrears, on a per share basis

	Three Months Ended
	September 30
	2015		2014
6% Convertible
Series A	$	17	$	17
Series B		17		16
5% Convertible
Series A	$	66	$	65
Series B		66		65

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RECENTLY ISSUED ACCOUNTING PRONOUONCEMENTS

3 Months Ended

Sep. 30, 2015

Accounting Changes and Error Corrections [Abstract]

RECENTLY ISSUED ACCOUNTING PRONOUONCEMENTS

NOTE 6 RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

In May 2014, the Financial Accounting Standards Board issued new accounting guidance for the recognition of revenue from contracts with customers, which will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for the Company’s fiscal year 2019, and early adoption is not permitted. The Company is evaluating the effect the new guidance will have on its consolidated financial statements and related disclosures. The Company has not yet determined the effect of the standard on its ongoing financial reporting.

There have been no other newly issued or newly applicable accounting pronouncements that have, or are expected to have, a significant impact on the Company’s financial statements.

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SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION (Details) - USD ($)	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash Paid for:
Interest	$ 136	$ 887
Income Taxes	27,700	$ 15,933
Noncash Transactions:
Financing of New Vehicles	$ 42,682

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EARNINGS PER SHARE (Detail Textuals) - USD ($)	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Class of Stock [Line Items]
Total cumulative preferred stock dividends in arrears	$ 7,852,752	$ 7,724,680
6% Prior Cumulative Preferred, $5 par value
Class of Stock [Line Items]
Redemption price per share (in dollars per share)	$ 5.25	$ 5.25
Preferred stock, liquidation preference per share (in dollars per share)	$ 5.25	$ 5.25
6% Prior Convertible Cumulative Preferred Stock - Series A
Class of Stock [Line Items]
Number of common stock exchanged for each preferred stock held	4	4
6% Prior Convertible Cumulative Preferred Stock - Series B
Class of Stock [Line Items]
Number of common stock exchanged for each preferred stock held	3.75	3.75
5% Convertible Cumulative Preferred, $20 Par Value
Class of Stock [Line Items]
Redemption price per share (in dollars per share)	$ 21.00	$ 21.00
Preferred stock, liquidation preference per share (in dollars per share)	$ 20.00	$ 20.00
Number of common stock exchanged for each preferred stock held	3.795	3.795

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EARNINGS PER SHARE (Details) - USD ($)	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Class of Stock [Line Items]
Net Income (Loss)	$ (3,746)	$ 34,701
Preferred Dividend Requirements:
Total Dividend Requirements	32,018	32,018
Net Income (Loss) - Common Stockholders	(35,764)	2,683
6% Prior Cumulative Preferred, $5 Par Value
Preferred Dividend Requirements:
Total Dividend Requirements	15,000	15,000
5% Convertible Cumulative Preferred, $20 Par Value
Preferred Dividend Requirements:
Total Dividend Requirements	$ 17,018	$ 17,018

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NOTES PAYABLE (Tables)

3 Months Ended

Sep. 30, 2015

Notes Payable [Abstract]

Schedule of long-term debt

		September 30,		June 30,
Payee	Terms	2015		2015
Nodaway Valley Bank	$350,000 line-of-credit agreement expiring on January 3, 2016, with a variable interest rate at prime but not less than 5%.  The line-of-credit is collateralized by substantially all assets of the Company.	$	225,000	$	-
Ford Credit	$468 monthly payments, interest of 2.9%; final payment due January 2019, secured by a vehicle.		17,878		19,151
Ford Credit	$705 monthly payments, interest of 5.8%; final payment due October 2020, secured by a vehicle.		42,682		-
Ford Credit	$517 monthly payments, interest of 0%; final payment due March 2016, secured by a vehicle.		-		3,150
	Total		285,560		22,301
	Less Current Portion		235,749		8,297
	Long-Term Portion	$	49,811	$	14,004

Schedule of future minimum payments of long term debt

2016	$	235,749
2017		11,796
2018		12,340
2019		9,123
2020		7,694
Thereafter		8,858
Total	$	285,560

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SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION (Tables)

3 Months Ended

Sep. 30, 2015

Supplemental Cash Flow Elements [Abstract]

Schedule of supplemental disclosures of cash flow information

	Three Months Ended
	September 30
	2015		2014
Cash Paid for:
Interest	$	136	$	887
Income Taxes	$	27,700	$	15,933
Noncash Transactions:
Financing of New Vehicles	$	42,682	$	-

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EARNINGS PER SHARE (Parentheticals) (Details) - $ / shares	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
6% Prior Cumulative Preferred, $5 Par Value
Class of Stock [Line Items]
Stated percentage of preferred stock	6.00%	6.00%
Preferred stock, par value (in dollars per share)	$ 5	$ 5
5% Convertible Cumulative Preferred, $20 Par Value
Class of Stock [Line Items]
Stated percentage of preferred stock	5.00%	5.00%
Preferred stock, par value (in dollars per share)	$ 20	$ 20

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NOTES PAYABLE - Long-term debt (Parentheticals) (Details) - USD ($)	3 Months Ended	12 Months Ended
	Sep. 30, 2015	Jun. 30, 2015
Nodaway Valley Bank: $350,000 line-of-credit agreement expiring on January 3, 2016, with a variable interest rate at prime but not less than 5%
Debt Instrument [Line Items]
Line-of-credit agreement, amount	$ 350,000	$ 350,000
Interest rate, description	variable interest rate	variable interest rate
Interest rate	5.00%	5.00%
Ford Credit: $468 monthly payments, interest of 2.9%; final payment due January 2019, secured by a vehicle
Debt Instrument [Line Items]
Notes payable, periodic payment	$ 468	$ 468
Notes payable, frequency	monthly	monthly
Interest rate	2.90%	2.90%
Ford Credit: $705 monthly payments, interest of 5.8%; final payment due October 2020, secured by a vehicle
Debt Instrument [Line Items]
Notes payable, periodic payment	$ 705	$ 705
Notes payable, frequency	monthly	monthly
Interest rate	5.80%	5.80%
Ford Credit: $517 monthly payments, interest of 0%; final payment due March 2016, secured by a vehicle
Debt Instrument [Line Items]
Notes payable, periodic payment	$ 517	$ 517
Notes payable, frequency	monthly	monthly
Interest rate	0.00%	0.00%

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)	$ (3,746)	$ 34,701
Adjustments to Reconcile Net Income (Loss) to Net Cash Used by Operating Activities:
Depreciation and Amortization	29,574	21,814
Allowance for Bad Debts	300	300
Deferred Income Amortization	(324)	(324)
Deferred Income Taxes	(3,263)	$ (7,405)
(Gain) on Sale of Equipment	(12,374)
Effects of Changes in Operating Assets and Liabilities:
Trade Receivables	(511,861)	$ (508,492)
Inventories	42,254	(11,934)
Prepaid Expenses	(35,702)	(1,450)
Accounts Payable	221,807	288,401
Accrued Expenses	29,976	(96,871)
Income Taxes Payable	(17,428)	8,722
Net Cash Used by Operating Activities	(260,787)	(272,538)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of Property and Equipment	(14,082)	(11,386)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Line-of-Credit	225,000	135,000
Principal Payments on Notes Payable	(4,423)	(11,705)
Net Cash Provided by Financing Activities	220,577	123,295
NET DECREASE IN CASH AND CASH EQUIVALENTS	(54,292)	(160,629)
Cash and Cash Equivalents - Beginning of Period	84,204	162,435
CASH AND CASH EQUIVALENTS - END OF PERIOD	$ 29,912	$ 1,806

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SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

3 Months Ended

Sep. 30, 2015

Supplemental Cash Flow Elements [Abstract]

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

NOTE 5 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

	Three Months Ended
	September 30
	2015		2014
Cash Paid for:
Interest	$	136	$	887
Income Taxes	$	27,700	$	15,933
Noncash Transactions:
Financing of New Vehicles	$	42,682	$	-

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NOTES PAYABLE - Long-term debt (Details) - USD ($)	Sep. 30, 2015	Jun. 30, 2015
Debt Instrument [Line Items]
Total	$ 285,560	$ 22,301
Less Current Portion	235,749	8,297
Long-Term Portion	49,811	$ 14,004
Nodaway Valley Bank: $350,000 line-of-credit agreement expiring on January 3, 2016, with a variable interest rate at prime but not less than 5%
Debt Instrument [Line Items]
Total	225,000
Ford Credit: $468 monthly payments, interest of 2.9%; final payment due January 2019, secured by a vehicle
Debt Instrument [Line Items]
Total	17,878	$ 19,151
Ford Credit: $705 monthly payments, interest of 5.8%; final payment due October 2020, secured by a vehicle
Debt Instrument [Line Items]
Total	$ 42,682
Ford Credit: $517 monthly payments, interest of 0%; final payment due March 2016, secured by a vehicle
Debt Instrument [Line Items]
Total		$ 3,150