Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jun. 30, 2019

Summary of Revision of Previously Issued Financial Statements

The following table summarizes the effect of this revision of our Consolidated Balance Sheets as of June 30, 2018 and 2017, (in thousands):

	Year ended June 30, 2018									Year ended June 30, 2017
	In Thousands									In Thousands
	As Previously						As			As Previously						As
	Reported			Adjustment			Revised			Reported			Adjustment			Revised
ASSETS
Total Assets	$	74,204		$	-		$	74,204		$	70,615		$	-		$	70,615
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities		25,838			-			25,838			28,155			-			28,155
Long-Term Deferred Taxes		1,717			(1,079	)		638			871			(820	)		51
Long-Term Taxes Payable and Other Long-Term Liabilities		1,051						1,051			1,754			-			1,754
Total Liabilities		28,606			(1,079	)		27,527			30,780			(820	)		29,960
Shareholders' Equity
Preferred stock - no par value		-			-			-			-			-			-
Common stock, $0.01 par value		96			-			96			94			-			94
Accumulated other comprehensive income (loss)		(2,098	)		2			(2,096	)		(2,721	)		-			(2,721	)
Additional paid-in capital		48,110			-			48,110			46,688			-			46,688
Retained (deficit) earnings		(510	)		1,077			567			(4,226	)		820			(3,406	)
Total shareholders' equity		45,598			1,079			46,677			39,835			820			40,655
Total Liabilities and Shareholders' Equity	$	74,204		$	-		$	74,204		$	70,615		$	-		$	70,615

The following table summarizes the effect of this revision of our Consolidated Statement of Operations for the twelve months ended June 30, 2018 and 2017, (in thousands):

	Year ended June 30, 2018								Year ended June 30, 2017
	(In Thousands Except Per Share Amounts)								(In Thousands Except Per Share Amounts)
	As Previously					As			As Previously					As
	Reported			Adjustment		Revised			Reported			Adjustment		Revised
Net Sales	$	84,693		$	-	$	84,693		$	77,947		$	-	$	77,947
Cost of Sales		52,693			-		52,693			50,178			-		50,178
Gross Profit		32,000			-		32,000			27,769			-		27,769
Operating Expenses		27,052			-		27,052			25,950			-		25,950
Operating Income		4,948			-		4,948			1,819			-		1,819
Other Income and (Expense)		(459	)		-		(459	)		(557	)		-		(557	)
Income Before Income Taxes		4,489			-		4,489			1,262			-		1,262
Income Tax Benefit (Expense)		(773	)		257		(516	)		(1,430	)		253		(1,177	)
Net Income	$	3,716		$	257	$	3,973		$	(168	)	$	253	$	85
Income Per Common Share
Basic	$	0.39		$	0.03	$	0.42		$	(0.02	)	$	0.03	$	0.01
Diluted	$	0.39		$	0.02	$	0.41		$	(0.02	)	$	0.03	$	0.01
Weighted Average Common Shares Outstanding
Basic		9,469			-		9,469			9,382			-		9,382
Dilutive effect of stock options		110			-		110			-			-		-
Diluted		9,579			-		9,579			9,382			-		9,382

ASC 606 [Member]

Summary of Cumulative Effect of Changes to Financial Statements

The following table summarizes the cumulative effect of the changes to our Consolidated Balance Sheet as of July 1, 2018 from the adoption of ASC 606 (in thousands):

						Opening
	At June 30,		ASC 606			Balance at
	2018		Adjustments			July 1, 2018
	(As Revised)					(As Revised)
Assets
Unbilled receivables	$	-	$	1,864		$	1,864
Inventories		13,829		(1,350	)		12,479
Other current assets		1,327		49			1,376
Liabilities and Shareholders' Equity
Deferred revenue		9,430		(1,976	)		7,454
Long-Term Deferred Income Tax Liability		638		490			1,128
Retained earnings		567		2,049			2,616

The following table summarizes the cumulative effect of the changes to our unaudited Consolidated Balance Sheet as of June 30, 2019 from the adoption of ASC 606 (in thousands, except per share amount):

	As reported						Balances
	June 30,			ASC 606			without adoption
	2019			Adjustments			of ASC 606
ASSETS
Current Assets
Cash and cash equivalents	$	4,585		$	-		$	4,585
Short-term investments		1,431						1,431
Receivables:
Billed receivables, net		27,449			-			27,449
Unbilled receivables, net		5,394			(5,394	)		-
Other receivables		200			-			200
Inventories, net		10,810			3,970			14,780
Other current assets		1,529			(165	)		1,364
Total current assets		51,398			(1,589	)		49,809
Property and Equipment, Net		6,538			-			6,538
Goodwill		1,741			-			1,741
Intangible assets, Net		1,816			-			1,816
Long-Term Investment		725			-			725
Long-Term Deferred Income Tax Assets		620			333			953
Total Assets	$	62,838		$	(1,256	)	$	61,582
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Line of credit and short-term notes payable	$	-		$	-		$	-
Accounts payable		7,397			-			7,397
Accrued liabilities and expenses		3,609			-			3,609
Accrued compensation		1,646			-			1,646
Current portion of taxes payable		320			-			320
Income taxes payable		536			-			536
Reserves for restructuring and other charges		44			-			44
Deferred revenue		6,649			2,489			9,138
Total current liabilities		20,201			2,489			22,690
Long-Term Taxes Payable		114			-			114
Long-Term Deferred Income Tax Liability		41			-			41
Other Long-Term Liabilities		556			-			556
Total Liabilities	$	20,912		$	2,489		$	23,401
Shareholders' Equity
Preferred stock		-			-			-
Common stock		97			-			97
Accumulated other comprehensive loss		(3,079	)		-			(3,079	)
Additional paid-in capital		49,083			-			49,083
Retained deficit		(4,175	)		(3,745	)		(7,920	)
Total Shareholders' Equity	$	41,926		$	(3,745	)	$	38,181
Total Liabilities and Shareholders' Equity	$	62,838		$	(1,256	)	$	61,582

The following table summarizes the effect on our unaudited Consolidated Statement of Operations for the twelve months ended June 30, 2019 of adopting ASC 606 (in thousands):

	As reported
	Twelve Months Ended			ASC 606			Balances without
	June 30, 2019			Adjustments			adoption of ASC 606
Net Sales	$	76,822		$	(4,043	)	$	72,779
Cost of Sales		49,630			(2,506	)		47,124
Gross Profit		27,192			(1,537	)		25,655
Operating Expenses
Selling, general and administrative		18,980			2			18,982
Engineering, research and development		8,040			-			8,040
Severance, impairment and other charges		6,930			-			6,930
Total operating expenses		33,950			2			33,952
Operating (Loss) Income		(6,758	)		(1,539	)		(8,297	)
Other Income and (Expenses)
Interest expense, net		(252	)		-			(252	)
Foreign currency loss, net		(90	)		-			(90	)
Other income (expenses), net		97			-			97
Total other income and (expenses)		(245	)		-			(245	)
(Loss) Income Before Income Taxes		(7,003	)		(1,539	)		(8,542	)
Income Tax (Expense) Benefit		212			(157	)		55
Net (Loss) Income	$	(6,791	)	$	(1,696	)	$	(8,487	)