(State or other jurisdiction of | (I.R.S. Employer Identification No.) | ||||
incorporation or organization) |
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||
The NASDAQ Capital Market |
Large accelerated filer ☐ | Accelerated filer ☐ | Smaller reporting company | |||||||||
Emerging growth company |
SHARPS COMPLIANCE CORP. AND SUBSIDIARIES | ||||||||
PAGE | ||||||||
September 30, | June 30, | |||||||||||||
2020 | 2020 | |||||||||||||
ASSETS | ||||||||||||||
CURRENT ASSETS | ||||||||||||||
Cash | $ | $ | ||||||||||||
Accounts receivable, net | ||||||||||||||
Inventory | ||||||||||||||
Contract asset | ||||||||||||||
Prepaid and other current assets | ||||||||||||||
TOTAL CURRENT ASSETS | ||||||||||||||
PROPERTY, PLANT AND EQUIPMENT, net | ||||||||||||||
OPERATING LEASE RIGHT OF USE ASSET | ||||||||||||||
INVENTORY, net of current portion | ||||||||||||||
OTHER ASSETS | ||||||||||||||
GOODWILL | ||||||||||||||
INTANGIBLE ASSETS, net | ||||||||||||||
DEFERRED TAX ASSET | ||||||||||||||
TOTAL ASSETS | $ | $ | ||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
CURRENT LIABILITIES | ||||||||||||||
Accounts payable | $ | $ | ||||||||||||
Accrued liabilities | ||||||||||||||
Operating lease liability | ||||||||||||||
Current maturities of long-term debt | ||||||||||||||
Contract liability | ||||||||||||||
TOTAL CURRENT LIABILITIES | ||||||||||||||
CONTRACT LIABILITY, net of current portion | ||||||||||||||
OPERATING LEASE LIABILITY, net of current portion | ||||||||||||||
OTHER LIABILITIES | ||||||||||||||
LONG-TERM DEBT, net of current portion | ||||||||||||||
TOTAL LIABILITIES | ||||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||||
STOCKHOLDERS' EQUITY | ||||||||||||||
Common stock, $ | ||||||||||||||
Treasury stock, at cost, | ( | ( | ||||||||||||
Additional paid-in capital | ||||||||||||||
Retained earnings | ||||||||||||||
TOTAL STOCKHOLDERS' EQUITY | ||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | $ |
Three-Months Ended September 30, | ||||||||||||||
2020 | 2019 | |||||||||||||
REVENUES | $ | $ | ||||||||||||
Cost of revenues | ||||||||||||||
GROSS PROFIT | ||||||||||||||
Selling, general and administrative | ||||||||||||||
Depreciation and amortization | ||||||||||||||
OPERATING INCOME (LOSS) | ( | |||||||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||
Interest income | ||||||||||||||
Interest expense | ( | ( | ||||||||||||
Income associated with derivative instrument | ||||||||||||||
TOTAL OTHER EXPENSE | ( | ( | ||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | ( | |||||||||||||
INCOME TAX EXPENSE (BENEFIT) | ||||||||||||||
Current | ||||||||||||||
Deferred | ( | |||||||||||||
TOTAL INCOME TAX EXPENSE (BENEFIT) | ( | |||||||||||||
NET INCOME (LOSS) | $ | ( | $ | |||||||||||
NET INCOME (LOSS) PER COMMON SHARE - Basic and Diluted | $ | ( | $ | |||||||||||
WEIGHTED AVERAGE SHARES USED IN COMPUTING NET INCOME PER COMMON SHARE: | ||||||||||||||
Basic | ||||||||||||||
Diluted | ||||||||||||||
Common Stock | Treasury Stock | Additional Paid-in Capital | Accumulated Deficit | Total Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||
Balances, June 30, 2019 | $ | ( | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Balances, September 30, 2019 | $ | ( | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||
Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Total Stockholders' Equity | ||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||
Balances, June 30, 2020 | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||
Balances, September 30, 2020 | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Three-Months Ended September 30, | ||||||||||||||
2020 | 2019 | |||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||
Net income (loss) | $ | ( | $ | |||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||
Depreciation and amortization | ||||||||||||||
Bad debt expense | ||||||||||||||
Inventory write-off | ||||||||||||||
Loss on disposal of property, plant and equipment | ||||||||||||||
Stock-based compensation expense | ||||||||||||||
Income on derivative instrument | ( | |||||||||||||
Deferred tax expense (benefit) | ( | |||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Accounts receivable | ( | |||||||||||||
Inventory | ||||||||||||||
Prepaid and other assets | ( | |||||||||||||
Accounts payable and accrued liabilities | ( | ( | ||||||||||||
Contract asset and contract liability | ||||||||||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | ||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||
Purchase of property, plant and equipment | ( | ( | ||||||||||||
Additions to intangible assets | ( | ( | ||||||||||||
NET CASH USED IN INVESTING ACTIVITIES | ( | ( | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||
Proceeds from exercise of stock options | ||||||||||||||
Proceeds from long-term debt | ||||||||||||||
Repayments of long-term debt | ( | ( | ||||||||||||
Payments of debt issuance costs | ( | |||||||||||||
NET CASH PROVIDED BY FINANCING ACTIVITIES | ||||||||||||||
NET INCREASE IN CASH | ||||||||||||||
CASH, beginning of period | ||||||||||||||
CASH, end of period | $ | $ | ||||||||||||
SUPPLEMENTAL CASH FLOW DISCLOSURES: | ||||||||||||||
Income taxes paid, net of refunds | $ | ( | $ | |||||||||||
Interest paid on long-term debt | $ | $ | ||||||||||||
NON-CASH INVESTING ACTIVITIES: | ||||||||||||||
Property, plant and equipment financed through accounts payable | $ | $ | ( | |||||||||||
Three-Months Ended September 30, | ||||||||||||||||||||||||||
2020 | % Total | 2019 | % Total | |||||||||||||||||||||||
REVENUES BY SOLUTION: | ||||||||||||||||||||||||||
Mailbacks | $ | % | $ | % | ||||||||||||||||||||||
Route-based pickup services | % | % | ||||||||||||||||||||||||
Unused medications | % | % | ||||||||||||||||||||||||
Third party treatment services | % | % | ||||||||||||||||||||||||
Other (1) | % | % | ||||||||||||||||||||||||
Total revenues | $ | % | $ | % | ||||||||||||||||||||||
Three-Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Lease cost (1) - operating lease cost - fixed rent expense included in: | |||||||||||
Cost of revenues | $ | $ | |||||||||
Selling, general and administrative | |||||||||||
Total | $ | $ |
Three-Months Ended September 30, | |||||||||||
2020 | 2019 | ||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows from operating leases | $ | $ | |||||||||
Non-cash changes to the Operating ROU Asset and Operating Lease Liability | |||||||||||
Additions and modifications to ROU asset obtained from new operating lease liabilities | $ | $ | |||||||||
Additions to ROU asset obtained from operating lease liabilities upon adoption of new guidance | $ | $ |
Future payments due in the twelve months ended September 30, | |||||
2021 | $ | ||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
Thereafter | |||||
Total undiscounted lease payments | |||||
Less effects of discounting | ( | ||||
Lease liability recognized | $ |
September 30, 2020 | June 30, 2020 | ||||||||||
Acquisition loan, monthly payments of $ | $ | $ | |||||||||
Equipment loan, monthly payments of $ | |||||||||||
Real estate loan, monthly principal payments begin upon completion of the advancing period. | |||||||||||
Paycheck Protection Program loan | |||||||||||
Total long-term debt | |||||||||||
Less: current portion | |||||||||||
Long-term debt, net of current portion | $ | $ |
Twelve Months Ending September 30, | |||||
2021 | $ | ||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
$ |
Three-Months Ended September 30, | ||||||||||||||
2020 | 2019 | |||||||||||||
Stock-based compensation expense included in: | ||||||||||||||
Cost of revenues | $ | $ | ||||||||||||
Selling, general and administrative | ||||||||||||||
Total | $ | $ |
Three-Months Ended September 30, | ||||||||||||||
2020 | 2019 | |||||||||||||
Net income (loss), as reported | $ | ( | $ | |||||||||||
Weighted average common shares outstanding | ||||||||||||||
Effect of dilutive stock options | ||||||||||||||
Weighted average diluted common shares outstanding | ||||||||||||||
Net income (loss) per common share | ||||||||||||||
Basic and diluted | $ | ( | $ | |||||||||||
Employee stock options excluded from computation of dilutive income (loss) per share amounts because their effect would be anti-dilutive |
Three-Months Ended September 30, | ||||||||||||||
2020 | 2019 | |||||||||||||
Options exercised | ||||||||||||||
Proceeds | $ | $ | ||||||||||||
Average exercise price per share | $ | $ |
September 30, 2020 | June 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||
Estimated Useful Lives | Original Amount | Accumulated Amortization | Net Amount | Original Amount | Accumulated Amortization | Net Amount | ||||||||||||||||||||||||||||||||||||||
Customer relationships | $ | $ | ( | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||
Permits | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Patents | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Trade name | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Non-compete | ( | ( | ||||||||||||||||||||||||||||||||||||||||||
Total intangible assets, net | $ | $ | ( | $ | $ | $ | ( | $ |
Twelve Months Ending September 30, | |||||
2021 | $ | ||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
Thereafter | |||||
$ |
September 30, 2020 | June 30, 2020 | |||||||||||||
Raw materials | $ | $ | ||||||||||||
Finished goods | ||||||||||||||
Total inventory | ||||||||||||||
Less: current portion | ||||||||||||||
Inventory, net of current portion | $ | $ |
Three-Months Ended September 30, | ||||||||||||||||||||||||||
2020 | % | 2019 | % | |||||||||||||||||||||||
Revenues | $ | 13,151 | 100.0 | % | $ | 13,599 | 100.0 | % | ||||||||||||||||||
Cost of revenues | 9,528 | 72.5 | % | 9,115 | 67.0 | % | ||||||||||||||||||||
Gross profit | 3,623 | 27.5 | % | 4,484 | 33.0 | % | ||||||||||||||||||||
SG&A expense | 3,788 | 28.8 | % | 3,512 | 25.8 | % | ||||||||||||||||||||
Depreciation and amortization | 204 | 1.6 | % | 204 | 1.5 | % | ||||||||||||||||||||
Operating Income (Loss) | (369) | (2.8) | % | 768 | 5.6 | % | ||||||||||||||||||||
Total other expense | (27) | (0.2) | % | (14) | (0.1) | % | ||||||||||||||||||||
Income (loss) before income taxes | (396) | (3.0) | % | 754 | 5.5 | % | ||||||||||||||||||||
Income tax expense (benefit) | (103) | (0.8) | % | 68 | 0.5 | % | ||||||||||||||||||||
Net Income (Loss) | $ | (293) | (2.2) | % | $ | 686 | 5.0 | % |
Three-Months Ended September 30, | ||||||||||||||||||||
2020 | 2019 | Variance | ||||||||||||||||||
BILLINGS BY MARKET: | ||||||||||||||||||||
Professional | $ | 4,133 | $ | 4,135 | $ | (2) | ||||||||||||||
Retail | 3,647 | 4,142 | (495) | |||||||||||||||||
Home Health Care | 2,348 | 3,317 | (969) | |||||||||||||||||
Long-Term Care | 1,309 | 624 | 685 | |||||||||||||||||
Pharmaceutical Manufacturer | 1,179 | 937 | 242 | |||||||||||||||||
Government | 515 | 764 | (249) | |||||||||||||||||
Environmental | 135 | 19 | 116 | |||||||||||||||||
Other | 162 | 281 | (119) | |||||||||||||||||
Subtotal | 13,428 | 14,219 | (791) | |||||||||||||||||
GAAP Adjustment * | (277) | (620) | 343 | |||||||||||||||||
Revenue Reported | $ | 13,151 | $ | 13,599 | $ | (448) |
Three-Months Ended September 30, | ||||||||||||||||||||||||||
2020 | % Total | 2019 | % Total | |||||||||||||||||||||||
BILLINGS BY SOLUTION: | ||||||||||||||||||||||||||
Mailbacks | $ | 6,439 | 47.9 | % | $ | 7,737 | 54.4 | % | ||||||||||||||||||
Route-based pickup services | 3,156 | 23.5 | % | 2,657 | 18.7 | % | ||||||||||||||||||||
Unused medications | 2,361 | 17.6 | % | 2,383 | 16.8 | % | ||||||||||||||||||||
Third party treatment services | 135 | 1.0 | % | 19 | 0.1 | % | ||||||||||||||||||||
Other (1) | 1,337 | 10.0 | % | 1,423 | 10.0 | % | ||||||||||||||||||||
Total billings | 13,428 | 100.0 | % | 14,219 | 100.0 | % | ||||||||||||||||||||
GAAP adjustment (2) | (277) | (620) | ||||||||||||||||||||||||
Revenue reported | $ | 13,151 | $ | 13,599 |
(a) | Exhibits: | ||||
101.INS | XBRL Instance Document (filed herewith) | ||||
101.SCH | XBRL Taxonomy Extension Schema Document (filed herewith) | ||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document (filed herewith) | ||||
101.DEF | XBRL Taxonomy Extension Linkbase Document (filed herewith) | ||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document (filed herewith) | ||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document (filed herewith) |
REGISTRANT: | |||||
SHARPS COMPLIANCE CORP. | |||||
Dated: November 4, 2020 | By: /s/ DAVID P. TUSA | ||||
David P. Tusa | |||||
Chief Executive Officer and President | |||||
(Principal Executive Officer) |
Dated: November 4, 2020 | By: /s/ DIANA P. DIAZ | ||||
Diana P. Diaz | |||||
Vice President and Chief Financial Officer | |||||
(Principal Financial and Accounting Officer) |
Date: November 4, 2020 | /s/David P. Tusa | ||||
Chief Executive Officer and President | |||||
(Principal Executive Officer) |
Date: November 4, 2020 | /s/Diana P. Diaz | ||||
Vice President and Chief Financial Officer | |||||
(Principal Financial and Accounting Officer) |
Date: November 4, 2020 | /s/David P. Tusa | ||||
Chief Executive Officer and President | |||||
Date: November 4, 2020 | /s/Diana P. Diaz | ||||
Vice President and Chief Financial Officer | |||||
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares |
Sep. 30, 2020 |
Jun. 30, 2020 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 16,718,103 | 16,667,572 |
Common stock, shares outstanding (in shares) | 16,422,488 | 16,371,957 |
Treasury stock, shares repurchased (in shares) | 295,615 | 295,615 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Income Statement [Abstract] | ||
REVENUES | $ 13,151 | $ 13,599 |
Cost of revenues | 9,528 | 9,115 |
GROSS PROFIT | 3,623 | 4,484 |
Selling, general and administrative | 3,788 | 3,512 |
Depreciation and amortization | 204 | 204 |
OPERATING INCOME (LOSS) | (369) | 768 |
OTHER INCOME (EXPENSE) | ||
Interest income | 0 | 5 |
Interest expense | (32) | (19) |
Income associated with derivative instrument | 5 | 0 |
TOTAL OTHER EXPENSE | (27) | (14) |
INCOME (LOSS) BEFORE INCOME TAXES | (396) | 754 |
INCOME TAX EXPENSE (BENEFIT) | ||
Current | 0 | 23 |
Deferred | (103) | 45 |
TOTAL INCOME TAX EXPENSE (BENEFIT) | (103) | 68 |
NET INCOME (LOSS) | $ (293) | $ 686 |
NET INCOME (LOSS) PER COMMON SHARE - Basic and Diluted (in dollars per share) | $ (0.02) | $ 0.04 |
WEIGHTED AVERAGE SHARES USED IN COMPUTING NET INCOME (LOSS) PER COMMON SHARE: | ||
Basic (in shares) | 16,391 | 16,145 |
Diluted (in shares) | 16,391 | 16,168 |
ORGANIZATION AND BACKGROUND |
3 Months Ended |
---|---|
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND BACKGROUND | ORGANIZATION AND BACKGROUND Organization: The accompanying unaudited condensed consolidated financial statements include the financial transactions and accounts of Sharps Compliance Corp. and its wholly owned subsidiaries, Sharps Compliance, Inc. of Texas (dba Sharps Compliance, Inc.), Sharps e-Tools.com Inc. (“Sharps e-Tools”), Sharps Manufacturing, Inc., Sharps Environmental Services, Inc. (dba Sharps Environmental Services of Texas, Inc.), Sharps Safety, Inc., Alpha Bio/Med Services LLC, Bio-Team Mobile LLC and Citiwaste, LLC (collectively, “Sharps” or the “Company”). All significant intercompany accounts and transactions have been eliminated upon consolidation. Business: Sharps is a full-service national provider of comprehensive waste management services including medical, pharmaceutical and hazardous for small and medium quantity generators. The Company’s solutions include Sharps Recovery System™ (formerly Sharps Disposal by Mail System®), TakeAway Recovery System, TakeAway Medication Recovery System™, MedSafe®, TakeAway Recycle System™, ComplianceTRACSM, SharpsTracer®, Sharps Secure® Needle Disposal System, Complete Needle™ Collection & Disposal System, TakeAway Environmental Return System™, Pitch-It IV™ Poles, Asset Return System and Spill Kit Recovery System. The Company also offers its route-based pick-up services in a thirty-two (32) state region of the South, Southeast, Midwest and Northeast portions of the United States.
|
BASIS OF PRESENTATION |
3 Months Ended |
---|---|
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information and with instructions to Form 10-Q and, accordingly, do not include all information and footnotes required under generally accepted accounting principles in the United States of America ("GAAP") for complete financial statements. Additionally, the preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts. In the opinion of management, these interim condensed consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the consolidated financial position of the Company as of September 30, 2020, the results of its operations for the three months ended September 30, 2020 and 2019, cash flows for the three months ended September 30, 2020 and 2019, and stockholders’ equity for the three months ended September 30, 2020 and 2019. The results of operations for the three months ended September 30, 2020 are not necessarily indicative of the results to be expected for the entire fiscal year ending June 30, 2021. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended June 30, 2020. A novel strain of coronavirus ("COVID-19") was first identified in December 2019, and subsequently declared a global pandemic by the World Health Organization on March 11, 2020. As a result of the outbreak, many companies have experienced disruptions in their operations and in servicing customers. The Company has implemented some and may take additional precautionary measures intended to help ensure the well-being of its employees, facilitate continued uninterrupted servicing of customers and minimize business disruptions. The full extent of the future impacts of COVID-19 on the Company's operations is uncertain. A prolonged outbreak could have a material adverse impact on the financial results and business operations of the Company. To date, the Company has not identified any material adverse impact of COVID-19 on its financial position and results of operations.
|
SIGNIFICANT ACCOUNTING POLICIES |
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Sep. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition: The components of revenues by solution which reflect a disaggregation of revenue by contract type are as follows (dollar amounts in thousands):
(1)The Company’s other products include IV poles, accessories, containers, asset return boxes and other miscellaneous items with single performance obligations. Vendor Managed Inventory ("VMI") - The VMI program includes terms that meet the “bill and hold” criteria and as such are recognized when the order is placed, title has transferred, there are no acceptance provisions and amounts are segregated in the Company’s warehouse for the customer. During the three months ended September 30, 2020 and 2019, the Company recorded billings from inventory builds that are held in VMI under these service agreements of $1.0 million and $0.5 million, respectively. As of September 30, 2020 and June 30, 2020, $2.9 million and $2.8 million, respectively, of solutions sold through that date were held in vendor managed inventory pending fulfillment or shipment to patients of pharmaceutical manufacturers who offer these solutions to patients in an ongoing patient support program. Income Taxes: Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is established when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The establishment of valuation allowances requires significant judgment and is impacted by various estimates. Both positive and negative evidence, as well as the objectivity and verifiability of that evidence, is considered in determining the appropriateness of recording a valuation allowance on deferred tax assets. The Company has historically recorded a valuation allowance to reduce its deferred tax assets to an amount that is more likely than not to be realized. However, during the year ended June 30, 2020, the Company released the full amount of the valuation allowance against its deferred tax assets on the basis of the Company's reassessment of the recoverability of its deferred tax assets. Accounts Receivable: Accounts receivable consist primarily of amounts due to the Company from normal business activities. Accounts receivable balances are determined to be delinquent when the amount is past due based on the contractual terms with the customer. The Company maintains an allowance for doubtful accounts to reflect the likelihood of not collecting certain accounts receivable based on past collection history and specific risks identified among uncollected accounts. Accounts receivable are charged to the allowance for doubtful accounts when the Company determines that the receivable will not be collected and/or when the account has been referred to a third party collection agency. The Company has a history of minimal uncollectible accounts. Goodwill and Other Identifiable Intangible Assets: Finite-lived intangible assets are amortized over their respective estimated useful lives and evaluated for impairment periodically whenever events or changes in circumstances indicate that their related carrying values may not be fully recoverable. Goodwill is assessed for impairment at least annually. The Company generally performs its annual goodwill impairment analysis using a quantitative approach. The quantitative goodwill impairment test identifies the existence of potential impairment by comparing the fair value of its single reporting unit with its carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying value, the reporting unit's goodwill is considered not to be impaired. If the carrying value of a reporting unit exceeds its fair value, an impairment charge is recognized in an amount equal to that excess. The impairment charge recognized is limited to the amount of goodwill present in the single reporting unit. These estimates and assumptions could have a significant impact on whether or not an impairment charge is recognized and the amount of any such charge. The Company performs its annual impairment assessment of goodwill during the fourth quarter of each fiscal year. The Company determined that there was no impairment during the prior year ended June 30, 2020 and there have been no triggering events since that date that would warrant further impairment testing.
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RECENTLY ISSUED ACCOUNTING STANDARDS |
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Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
RECENTLY ISSUED ACCOUNTING STANDARDS | RECENTLY ISSUED ACCOUNTING STANDARDS In March 2020, guidance for applying optional expedients and exceptions to ease the potential burden in accounting for reference rate reform on financial reporting was issued. It is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform on financial reporting. The provisions of the new guidance are effective for interim periods beginning as of March 12, 2020 through December 31, 2022. There has been no impact on the Company's consolidated financial statements and related disclosures as none of its arrangements have been modified as of September 30, 2020. The Company will continue to evaluate the standard as well as additional changes, modifications or interpretations which may impact the Company. In June 2016, guidance for credit losses of financial instruments was issued, which requires entities to measure credit losses for financial assets measured at amortized cost based on expected losses rather than incurred losses. The provisions of the new guidance are effective for annual periods beginning after December 15, 2022 (effective July 1, 2023 for the Company), including interim periods within the reporting period, and early application is permitted. The Company is in the initial stages of evaluating the impact of the new guidance on its consolidated financial statements and related disclosures as well as evaluating the available transition methods. The Company will continue to evaluate the standard as well as additional changes, modifications or interpretations which may impact the Company.
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INCOME TAXES |
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Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESThe Company’s effective tax rate for the three months ended September 30, 2020 and 2019 was (26.0)% and 9.0%, respectively. During the three-months ended September 30, 2020, the effective tax rate is based on the statutory federal tax rate of 21%, now that the valuation allowance has been removed since June 30, 2020, as well an approximated 5% state income tax rate net of the federal benefit. During the three months ended September 30, 2019, the effective tax rate represented the deferred tax expense related to the effects of indefinite lived intangible assets, such as goodwill, which could not be used as a source of future taxable income in evaluating the need for the valuation allowance against the deferred tax assets as well as the effects of the state income tax expense for the period. |
LEASES |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | LEASESThe Company has operating leases for real estate, field equipment, office equipment and vehicles. Operating leases are included in Operating Lease Right of Use ("ROU") Asset and Operating Lease Liability on our Condensed Consolidated Balance Sheets. During the three months ended September 30, 2020 and 2019, lease cost amounts, which reflect the fixed rent expense associated with operating leases, are as follows (in thousands):
(1) Finance lease cost, short-term lease cost and variable lease cost were not significant during the period. During the three months ended September 30, 2020 and 2019, the Company had the following cash and non-cash activities associated with leases (in thousands):
As of September 30, 2020, the weighted average remaining lease term for all operating leases is 4.85 years. The weighted average discount rate associated with operating leases as of September 30, 2020 is 4.4%. The future payments due under operating leases as of September 30, 2020 is as follows (in thousands):
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE AND LONG-TERM DEBT | NOTES PAYABLE AND LONG-TERM DEBT On March 29, 2017, the Company entered into a credit agreement with a commercial bank which was subsequently amended on June 29, 2018 to extend the maturity date by two years to March 29, 2021 for the working capital portion of the Credit Agreement (“Credit Agreement”). The Company expects the Credit Agreement will be renewed and extended prior to the maturity date. The Credit Agreement provides for a $14.0 million credit facility, the proceeds of which may be utilized as follows: (i) $6.0 million for working capital, letters of credit (up to $2.0 million) and general corporate purposes and (ii) $8.0 million for acquisitions. Indebtedness under the Credit Agreement is secured by substantially all of the Company’s assets with advances outstanding under the working capital portion of the credit facility at any time limited to a Borrowing Base (as defined in the Credit Agreement) equal to 80% of eligible accounts receivable plus the lesser of (i) 50% of eligible inventory and (ii) $3.0 million. Advances under the acquisition portion of the credit facility are limited to 75% of the purchase price of an acquired company and convert to a -year term note at the time of the borrowing. Borrowings bear interest at the greater of (a) zero percent or (b) the Month ICE LIBOR plus a LIBOR Margin of 2.5%. The LIBOR Margin may increase to as high as 3.0% depending on the Company’s cash flow leverage ratio. The interest rate as of September 30, 2020 was approximately 2.77%. The Company pays a fee of 0.25% per annum on the unused amount of the credit facility. On August 21, 2019, certain subsidiaries of the Company entered into a Construction and Term Loan Agreement and a Master Equipment Finance Agreement with its existing commercial bank (collectively, the “Loan Agreement”). The Loan Agreement provides for a -year, $3.2 million facility, the proceeds of which are to be utilized for expenditures to facilitate future growth at the Company’s treatment facility in Carthage, Texas (the “Texas Treatment Facility”) as follows: (i) $2.0 million for planned improvements and (ii) $1.2 million for equipment. Indebtedness under the Loan Agreement is secured by the Company’s real estate investment and equipment at the Texas Treatment Facility. Advances under the Loan Agreement mature five years from the Closing Date ("August 21, 2019") with monthly payments beginning in the month after the advancing period ends based on a 20-year amortization for the real estate portion and on a 6-year amortization for the equipment portion of the Loan Agreement. The advancing period extends through October 2020 and August 2020 for the real estate portion and the equipment portion of the Loan Agreement, respectively. Borrowings during the advancing period for the real estate portion and for the entire term of the equipment portion of the Loan Agreement bear interest computed at the One Month ICE LIBOR, plus two-hundred and fifty (250) basis points which was a rate of 2.77% on September 30, 2020. The Company has entered into a forward rate lock to fix the rate on the real estate portion of the Loan Agreement at the expiration of the advancing period at 4.15%. On April 20, 2020, the Company received loan proceeds of $2.2 million under the Paycheck Protection Program (“PPP”) under a promissory note from its existing commercial bank (the “PPP Loan”). The PPP, established as part of the CARES Act, provides for loans to qualifying businesses for amounts up to 2.5 times the average monthly payroll expenses of the qualifying business. The loans and accrued interest may be forgivable after eight to twenty-four weeks providing that the borrower uses the loan proceeds for eligible purposes, including payroll, benefits, rent and utilities, and maintains its payroll levels. The application for these funds requires the Company to, in good faith, certify that the current economic uncertainty made the loan request necessary to support the ongoing operations of the Company. Some of the uncertainties related to the Company’s operations that are directly related to COVID-19 include, but are not limited to, the severity of the virus, the duration of the outbreak, governmental, business or other actions (which could include limitations on operations or mandates to provide products or services), impacts on the supply chain, and the effect on customer demand or changes to operations. In addition, the health of the Company’s workforce, and its ability to meet staffing needs in its route-based, treatment and distribution operations and other critical functions are uncertain and is vital to its operations. The PPP Loan certification further requires the Company to take into account our current business activity and our ability to access other sources of liquidity sufficient to support ongoing operations in a manner that is not significantly detrimental to the business. While the Company does have availability under its Credit Agreement, $8.0 million of such availability can only be used for acquisitions and the $6.0 million that is available is in place to support working capital needs, along with current cash on hand. Further, the Company has a limited market capitalization and lack of history of being able to access the capital markets and as a result, the Company believes it meets the certification requirements. The receipt of these funds, and the forgiveness of the loan attendant to these funds, is dependent on the Company having initially qualified for the loan and qualifying for the forgiveness of such loan based on our future adherence to the forgiveness criteria. The term of the Company’s PPP Loan is two years. The Company has applied for forgiveness of the PPP Loan via its existing commercial bank under the guidelines provided by the Small Business Administration ("SBA") and the Department of Treasury. The annual interest rate on the PPP Loan is 1% and no payments of principal or interest are due during at least the six-month period beginning on the date of the PPP Loan. The PPP Loan is subject to any new guidance and new requirements released by the Department of the Treasury who has indicated that all companies that have received funds in excess of $2.0 million will be subject to a government (SBA) audit to further ensure PPP loans are limited to eligible borrowers in need. At September 30, 2020 and June 30, 2020, long-term debt consisted of the following (in thousands):
The Company has availability under the Credit Agreement of $13.1 million ($5.9 million for the working capital and $7.2 million for the acquisitions) as of September 30, 2020. The Company has availability under the Loan Agreement of $0.5 million for the real estate as of September 30, 2020. The Company also has $0.1 million in letters of credit outstanding as of September 30, 2020. The Credit and Loan Agreements contain affirmative and negative covenants that, among other things, require the Company to maintain a maximum cash flow leverage ratio of no more than 3.0 to 1.0 and a minimum debt service coverage ratio of not less than 1.15 to 1.00. The Credit and Loan Agreements also contain customary events of default which, if uncured, may terminate the agreements and require immediate repayment of all indebtedness to the lenders. The leverage ratio covenant may limit the amount available under the agreements. The Company was in compliance with all the financial covenants under the Credit and Loan Agreements as of September 30, 2020. Payments due on long-term debt subsequent to September 30, 2020 are as follows (in thousands):
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STOCK-BASED COMPENSATION |
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STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock-based compensation cost for options and restricted stock awarded to employees and directors is measured at the grant date based on the calculated fair value of the award and is recognized as an expense over the requisite service period (generally the vesting period of the equity grant). Total stock-based compensation expense for the three months ended September 30, 2020 and 2019 is as follows (in thousands):
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EARNINGS PER SHARE |
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EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income (loss) by the weighted average number of common shares after considering the additional dilution related to common stock options and restricted stock. In computing diluted earnings per share, the outstanding common stock options are considered dilutive using the treasury stock method. The Company’s restricted stock awards are treated as outstanding for earnings per share calculations since these shares have full voting rights and are entitled to participate in dividends declared on common shares, if any, and undistributed earnings. As participating securities, the shares of restricted stock are included in the calculation of basic and diluted EPS using the two-class method. For the periods presented, the amount of earnings allocated to the participating securities was not material. The following information is necessary to calculate earnings per share for the periods presented (in thousands, except per-share amounts):
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EQUITY TRANSACTIONS |
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Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EQUITY TRANSACTIONS | EQUITY TRANSACTIONS During the three months ended September 30, 2020 and 2019, respectively, stock options to purchase shares of the Company's common stock were exercised as follows (in thousands except per share amounts):
As of September 30, 2020, there was $0.6 million of stock compensation expense related to non-vested awards, which is expected to be recognized over a weighted average period of 2.6 years.
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GOODWILL AND INTANGIBLE ASSETS |
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GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS At September 30, 2020 and June 30, 2020, intangible assets consisted of the following (in thousands):
Amortization expense was $0.2 million for each of the three-months ended September 30, 2020 and 2019. There have been no changes in the carrying amount of goodwill since June 30, 2020. As of September 30, 2020, future amortization of intangible assets is as follows (in thousands):
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INVENTORY |
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INVENTORY | INVENTORY The components of inventory are as follows (in thousands):
The current portion of inventory includes amounts which the Company expects to sell in the next twelve month period based on historical sales.
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SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Income Taxes | Income Taxes: Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is established when it is more likely than not that some portion or all of the deferred tax assets will not be realized. The establishment of valuation allowances requires significant judgment and is impacted by various estimates. Both positive and negative evidence, as well as the objectivity and verifiability of that evidence, is considered in determining the appropriateness of recording a valuation allowance on deferred tax assets. The Company has historically recorded a valuation allowance to reduce its deferred tax assets to an amount that is more likely than not to be realized. However, during the year ended June 30, 2020, the Company released the full amount of the valuation allowance against its deferred tax assets on the basis of the Company's reassessment of the recoverability of its deferred tax assets. |
Accounts Receivable | Accounts Receivable: Accounts receivable consist primarily of amounts due to the Company from normal business activities. Accounts receivable balances are determined to be delinquent when the amount is past due based on the contractual terms with the customer. The Company maintains an allowance for doubtful accounts to reflect the likelihood of not collecting certain accounts receivable based on past collection history and specific risks identified among uncollected accounts. Accounts receivable are charged to the allowance for doubtful accounts when the Company determines that the receivable will not be collected and/or when the account has been referred to a third party collection agency. The Company has a history of minimal uncollectible accounts. |
Goodwill and Other Identifiable Intangible Assets | Goodwill and Other Identifiable Intangible Assets: Finite-lived intangible assets are amortized over their respective estimated useful lives and evaluated for impairment periodically whenever events or changes in circumstances indicate that their related carrying values may not be fully recoverable. Goodwill is assessed for impairment at least annually. The Company generally performs its annual goodwill impairment analysis using a quantitative approach. The quantitative goodwill impairment test identifies the existence of potential impairment by comparing the fair value of its single reporting unit with its carrying value, including goodwill. If the fair value of a reporting unit exceeds its carrying value, the reporting unit's goodwill is considered not to be impaired. If the carrying value of a reporting unit exceeds its fair value, an impairment charge is recognized in an amount equal to that excess. The impairment charge recognized is limited to the amount of goodwill present in the single reporting unit. These estimates and assumptions could have a significant impact on whether or not an impairment charge is recognized and the amount of any such charge. The Company performs its annual impairment assessment of goodwill during the fourth quarter of each fiscal year. |
Recently Issued Accounting Standards | In March 2020, guidance for applying optional expedients and exceptions to ease the potential burden in accounting for reference rate reform on financial reporting was issued. It is elective and applies to all entities, subject to meeting certain criteria, that have contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform on financial reporting. The provisions of the new guidance are effective for interim periods beginning as of March 12, 2020 through December 31, 2022. There has been no impact on the Company's consolidated financial statements and related disclosures as none of its arrangements have been modified as of September 30, 2020. The Company will continue to evaluate the standard as well as additional changes, modifications or interpretations which may impact the Company. In June 2016, guidance for credit losses of financial instruments was issued, which requires entities to measure credit losses for financial assets measured at amortized cost based on expected losses rather than incurred losses. The provisions of the new guidance are effective for annual periods beginning after December 15, 2022 (effective July 1, 2023 for the Company), including interim periods within the reporting period, and early application is permitted. The Company is in the initial stages of evaluating the impact of the new guidance on its consolidated financial statements and related disclosures as well as evaluating the available transition methods. The Company will continue to evaluate the standard as well as additional changes, modifications or interpretations which may impact the Company.
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SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Revenue by Solution | The components of revenues by solution which reflect a disaggregation of revenue by contract type are as follows (dollar amounts in thousands):
(1)The Company’s other products include IV poles, accessories, containers, asset return boxes and other miscellaneous items with single performance obligations.
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LEASES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Lease Components and Other Information | During the three months ended September 30, 2020 and 2019, lease cost amounts, which reflect the fixed rent expense associated with operating leases, are as follows (in thousands):
(1) Finance lease cost, short-term lease cost and variable lease cost were not significant during the period. During the three months ended September 30, 2020 and 2019, the Company had the following cash and non-cash activities associated with leases (in thousands):
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Schedule of Maturities of Operating Lease Liabilities | The future payments due under operating leases as of September 30, 2020 is as follows (in thousands):
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NOTES PAYABLE AND LONG-TERM DEBT (Tables) |
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt | At September 30, 2020 and June 30, 2020, long-term debt consisted of the following (in thousands):
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Schedule of Payments Due on Long-term Debt | Payments due on long-term debt subsequent to September 30, 2020 are as follows (in thousands):
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STOCK-BASED COMPENSATION (Tables) |
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Sep. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock-Based Compensation | stock-based compensation expense for the three months ended September 30, 2020 and 2019 is as follows (in thousands):
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EARNINGS PER SHARE (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share | The following information is necessary to calculate earnings per share for the periods presented (in thousands, except per-share amounts):
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EQUITY TRANSACTIONS (Tables) |
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Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Option Activity | During the three months ended September 30, 2020 and 2019, respectively, stock options to purchase shares of the Company's common stock were exercised as follows (in thousands except per share amounts):
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GOODWILL AND INTANGIBLE ASSETS (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets | At September 30, 2020 and June 30, 2020, intangible assets consisted of the following (in thousands):
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Schedule of Future Amortization of Intangible Assets | As of September 30, 2020, future amortization of intangible assets is as follows (in thousands):
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INVENTORY (Tables) |
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Sep. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory | The components of inventory are as follows (in thousands):
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ORGANIZATION AND BACKGROUND (Details) |
3 Months Ended |
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Sep. 30, 2020
state_region
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of route-based pick-up services in state region | 32 |
SIGNIFICANT ACCOUNTING POLICIES - Summary of Revenue by Solution (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 13,151 | $ 13,599 |
Revenue percentage | 100.00% | 100.00% |
Mailbacks | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 6,162 | $ 7,117 |
Revenue percentage | 46.80% | 52.40% |
Route-based pickup services | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 3,156 | $ 2,657 |
Revenue percentage | 24.00% | 19.50% |
Unused medications | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 2,361 | $ 2,383 |
Revenue percentage | 18.00% | 17.50% |
Third party treatment services | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 135 | $ 19 |
Revenue percentage | 1.00% | 0.10% |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenues | $ 1,337 | $ 1,423 |
Revenue percentage | 10.20% | 10.50% |
SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Jun. 30, 2020 |
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Accounting Policies [Abstract] | |||
Billings recorded from inventory builds | $ 1,000,000.0 | $ 500,000 | |
Solutions sold that were held in vendor managed inventory | $ 2,900,000 | $ 2,800,000 | |
Goodwill impairment | $ 0 |
INCOME TAXES (Details) |
3 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | (26.00%) | 9.00% |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 5.00% |
LEASES - Components of Net Lease (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | $ 684 | $ 537 |
Operating cash flows from operating leases | 646 | 531 |
Non-cash changes to the Operating ROU Asset and Operating Lease Liability | $ 1,676 | 4,565 |
Weighted average remaining lease term, operating leases | 4 years 10 months 6 days | |
Weighted average discount rate, operating leases | 4.40% | |
ASU 2016-02 | ||
Lessee, Lease, Description [Line Items] | ||
Non-cash changes to the Operating ROU Asset and Operating Lease Liability | $ 0 | 4,591 |
Cost of revenues | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | 571 | 434 |
Selling, general and administrative | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | $ 113 | $ 103 |
LEASES - Maturities of Operating Lease Liabilities (Details) $ in Thousands |
Sep. 30, 2020
USD ($)
|
---|---|
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2021 | $ 2,896 |
2022 | 2,277 |
2023 | 1,987 |
2024 | 1,788 |
2025 | 1,331 |
Thereafter | 853 |
Total undiscounted lease payments | 11,132 |
Less interest | (1,133) |
Present value of lease liabilities | $ 9,999 |
NOTES PAYABLE AND LONG-TERM DEBT - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Jun. 30, 2020 |
|
Debt Instrument [Line Items] | ||
Total long-term debt | $ 5,519 | $ 5,163 |
Less: current portion | 2,091 | 1,658 |
Long-term debt, net of current portion | 3,428 | 3,505 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 5,569 | |
Acquisition loan | Term Loan | ||
Debt Instrument [Line Items] | ||
Monthly payments | 43 | |
Total long-term debt | 819 | 948 |
Equipment loan | Term Loan | ||
Debt Instrument [Line Items] | ||
Monthly payments | 14 | |
Debt issuance costs, net | 50 | |
Total long-term debt | 977 | 929 |
Real estate loan | Term Loan | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 1,540 | 1,103 |
Payment Protection Program loan | Term Loan | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 2,183 | $ 2,183 |
NOTES PAYABLE AND LONG-TERM DEBT - Schedule of Payments Due on Long-term Debt (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Jun. 30, 2020 |
---|---|---|
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Total long-term debt | $ 5,519 | $ 5,163 |
Term Loan | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2021 | 2,091 | |
2022 | 1,365 | |
2023 | 232 | |
2024 | 245 | |
2025 | 1,636 | |
Total long-term debt | $ 5,569 |
STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | $ 162 | $ 104 |
Cost of revenues | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | 0 | 2 |
Selling, general and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation | $ 162 | $ 102 |
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Earnings Per Share [Abstract] | ||
Net income (loss), as reported | $ (293) | $ 686 |
Weighted average common shares outstanding | 16,391 | 16,145 |
Effect of dilutive stock options (in shares) | 0 | 23 |
Weighted average diluted common shares outstanding | 16,391 | 16,168 |
Net income (loss) per common share | ||
Basic and diluted (in dollars per share) | $ (0.02) | $ 0.04 |
Employee stock options excluded from computation of dilutive income (loss) per share amounts because their effect would be anti-dilutive (in shares) | 25 | 1,145 |
EQUITY TRANSACTIONS (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Stockholders' Equity Note [Abstract] | ||
Options exercised (in shares) | 50,531 | 9,200 |
Proceeds | $ 225 | $ 28 |
Average exercise price per share (in dollars per share) | $ 4.44 | $ 3.05 |
Compensation expense related to non-vested awards | $ 600 | |
Weighted average period | 2 years 7 months 6 days |
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible assets, amortization expense | $ 200,000 | $ 200,000 |
Changes in goodwill | $ 0 |
GOODWILL AND INTANGIBLE ASSETS - Schedule of Future Amortization of Intangible Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Jun. 30, 2020 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2021 | $ 644 | |
2022 | 615 | |
2023 | 456 | |
2024 | 153 | |
2025 | 153 | |
Thereafter | 646 | |
Total | $ 2,667 | $ 2,771 |
INVENTORY - Schedule of Inventory (Details) - USD ($) $ in Thousands |
Sep. 30, 2020 |
Jun. 30, 2020 |
---|---|---|
Components of inventory [Abstract] | ||
Raw materials | $ 1,199 | $ 1,402 |
Finished goods | 5,311 | 5,300 |
Total inventory | 6,510 | 6,702 |
Less: current portion | 5,476 | 5,638 |
Inventory, net of current portion | $ 1,034 | $ 1,064 |
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