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Interim Financial Reporting (Policies)

3 Months Ended

Sep. 30, 2019

Accounting Policies [Abstract]

Use of estimates

Use of estimates: Management uses estimates and assumptions in preparing the condensed financial statements in accordance with U.S. GAAP. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could vary from the estimates that were used. The Company believes the critical accounting policies that require the most significant assumptions and judgments in the preparation of its condensed financial statements include revenue recognition and the related estimation of variable consideration, allowance for doubtful accounts, inventory obsolescence, share-based compensation and the warranty liability.

Net income per common share

Net income per common share: Net income is presented on a per share basis for both basic and diluted common shares. Basic net income per common share is computed using the weighted average number of common shares outstanding during the period, excluding any restricted stock awards which have not vested. The diluted net income per common share calculation includes outstanding restricted stock grants and assumes that all stock options were exercised and converted into common stock at the beginning of the period, unless their effect would be anti-dilutive. Common stock equivalents excluded from the calculation of diluted earnings per share because their impact was anti-dilutive was 446,350 and 375,750 for the three months ended September 30, 2019 and 2018, respectively.

New Accounting Pronouncements

New accounting pronouncements:  In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases (Topic 842)” (“ASU 2016-02”).   This standard requires the recognition of all lease transactions on the balance sheet as a lease liability and a right-of-use asset (as defined in ASC 2016-02). ASU 2016-02 to Topic 842 – Leases (“ASC 842”) became effective for the Company on July 1, 2019 and was applied retrospectively to all periods presented.  The Company applied the practical expedient to calculate the present value of the fixed payments without having to perform an allocation to lease and non-lease components.  Additional information and required disclosures are included in Note 9. 

Impact on Previously Reported Results:

The following table presents a recast of selected unaudited statement of operations line items after giving effect to the adoption of ASC 842:

		For the three months ended September 30, 2018
		As Previously Reported				Effect of Adoption				As Adjusted
Net Revenues		$	7,275,883			$	–			$	7,275,883
Cost of Revenues			1,733,051				–				1,733,051
Gross Profit			5,542,832				–				5,542,832
Operating Expenses
Selling, general and administrative			5,275,755				(2,769	)			5,272,986
Research and development			68,137				–				68,137
Total operating expenses			5,343,892				(2,769	)			5,341,123
Operating Income			198,940				2,769				201,709
Interest income (expense), net			13,452				–				13,452
Net income before income taxes			212,392				2,769				215,161
Income tax expense			58,000				–				58,000
Net Income		$	154,392			$	2,769			$	157,161
Income per share:
Basic		$	0.02			$	0.00			$	0.02
Diluted		$	0.02			$	0.00			$	0.02

The following table presents a recast of selected unaudited balance sheet line items after giving effect to the adoption of ASC 842:

		June 30, 2019
		As Previously Reported				Effect of Adoption				As Adjusted
Assets
Other Assets			–				45,044				45,044
Liabilities and Shareholder’s Equity
Current maturities of other long-term liabilities							30,320				30,320
Other long-term liabilities			–				14,737				14,737
Retained Earnings			9,522,076				(12	)			9,522,064

The following table presents a recast of selected unaudited statement of cash flow line items after giving effect to the adoption of ASC 842:

		For the three months ended September 30, 2018
		As Previously Reported				Effect of Adoption				As Adjusted
Cash Flow from Operating Activities
Net income		$	154,392			$	2,769			$	157,161
Changes in operating assets and liabilities:
Prepaid expenses and other assets			336,065				45,292				381,357
Accounts payable and accrued liabilities			(103,253	)			(48,061	)			(151,314	)

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Disclosure of accounting policy for computing basic and diluted earnings or loss per share for each class of common stock and participating security. Addresses all significant policy factors, including any antidilutive items that have been excluded from the computation and takes into account stock dividends, splits and reverse splits that occur after the balance sheet date of the latest reporting period but before the issuance of the financial statements.

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Disclosure of accounting policy for the use of estimates in the preparation of financial statements in conformity with generally accepted accounting principles.

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