Note 12 - Stock Repurchase Program

12 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Stock Purchase Derivative Liability and Treasury Stock [Text Block]

12. STOCK REPURCHASE PROGRAM

In

April 

1995,

the Board of Directors approved a stock repurchase program authorizing the Company to purchase from time to time up to

$2,000,00

  of its common stock for its own account.  Subsequently, the Board of Directors periodically has approved increases in the amount authorized for repurchase under the program.  As of

June 30,

2019

, the Board had authorized the repurchase of an aggregate of

$45,500,000

 of common stock under the stock repurchase program, of which

$43,360,247

 had been expended.

No

shares were repurchased in

2019

or

2018

.

The Company has an agreement with the former chairman, in the event of his death, at the request of the executor of his estate, to repurchase his Company common stock from his estate.  The Company does

not

have the right to require the estate to sell stock to the Company. 

As of

June 30, 2018

and

June 30,

2019

, the estate of the former chairman does

not

hold a material amount of Company stock. As such, there is

no

exposure that the executor of the former chairman's estate

may

require the Company to repurchase a material amount of stock in the event of his death. The repurchase price is

95%

 of the fair market value of the common stock on the date that notice to repurchase is provided to the Company. The total number of shares to be repurchased will be sufficient to provide proceeds which are the lesser of

$2,500,000

 or the amount of estate taxes and administrative expenses incurred by his estate.  The Company

may

elect to pay the purchase price in cash or

may

elect to pay cash equal to

25%

 of the total amount due and to execute a promissory note at the prime rate of interest for the balance payable over

four

years.  The Company maintains a

$1,150,000

 life insurance policy to fund a substantial portion of this obligation.