Note 1 - Summary of Significant Accounting Policies

9 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Significant Accounting Policies [Text Block]

1.

    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A)  BASIS OF PRESENTATION

The condensed consolidated balance sheet as of

March 31, 2020

, the condensed consolidated statements of operations for the

three

and

nine

months ended

March 31, 2020

, the condensed consolidated statements of cash flows for the 

nine

months ended

March 31, 2020

 and the condensed consolidated statements of stockholders' equity for the 

three

and

nine

months ended

March 31, 2020

and

2019

, have been prepared by the Company in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and have

not

been audited.    In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for all periods presented have been made.  The operating results for any interim period are

not

necessarily indicative of the operating results that

may

be experienced for the full fiscal year.

Certain information and footnote disclosure normally included in consolidated financial statements prepared in accordance with U.S. GAAP  have been condensed or omitted.  These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form

10

-K for the fiscal year ended

June 30, 2019

.

The preparation of financial statements in conformity with U.S. GAAP requires the company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses. Significant estimates and assumptions are used for, but are

not

limited to, allowances for doubtful accounts, reserves for excess and obsolete inventories, long-lived and intangible assets, income tax 

valuation allowance

,

 non-cash stock-based compensation and deferred compensation. Actual results could differ from the

Company's

estimates.

B)   INCOME TAXES

A state tax provision of 

$6,104

 and 

$6,125

 was recorded during the

three

and

nine

months ended

March 31, 2020

, respective

ly.

 There was

no

state tax provision for the

three

and

nine

months ended

March 31, 2019. 

Utilization of net operating tax carryforwards and a full valuation allowance against deferred tax assets reduced the federal income tax expense to

zero

for the 

three

and

nine

months ended

March 31, 2020

and

2019

.  F

or the

three

and

nine

months ended

March 31, 2019

, the Company recorded an income tax benefit of

$23,020

 and

$22,995

, respectively, due to refund of the AMT credits

not

recognized in prior years.  This refund was allowed under the Tax Cuts and Jobs Act of

2017.

C)   PATENT COSTS

The Company incurs on-going legal fees and filing costs related to the patent portfolio. These costs are expensed in the period they are incurred since

no

patent legal costs were probable to provide a future economic benefit.