Chase General (CSGN) 10-Q13 Nov 232024 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Sep. 30, 2023	Nov. 13, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	2-5916
Entity Registrant Name	CHASE GENERAL CORP
Entity Incorporation, State or Country Code	MO
Entity Tax Identification Number	36-2667734
Entity Address, Address Line One	1307 South 59th,
Entity Address, City or Town	St. Joseph,
Entity Address, State or Province	MO
Entity Address, Postal Zip Code	64507
City Area Code	816
Local Phone Number	279-1625
Title of 12(b) Security	None
No Trading Symbol Flag	true
Security Exchange Name	NONE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		969,834
Entity Central Index Key	0000015357
Current Fiscal Year End Date	--06-30
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)	Sep. 30, 2023	Jun. 30, 2023
CURRENT ASSETS
Cash and Cash Equivalents	$ 20,485	$ 11,295
Trade Receivables, Net of Allowance for Doubtful Accounts of $1,896 and $948, Respectively	960,707	253,900
Inventories:
Finished Goods	365,352	393,898
Goods in Process	26,036	9,156
Raw Materials	163,360	131,549
Packaging Materials	273,438	269,028
Prepaid Expenses	4,162	21,884
Total Current Assets	1,813,540	1,090,710
Property & Equipment
Land	35,000	35,000
Buildings	77,348	77,348
Machinery and Equipment	886,341	886,341
Trucks and Autos	170,378	170,378
Office Equipment	33,025	33,025
Leasehold Improvements	72,068	72,068
Total	1,274,160	1,274,160
Less: Accumulated Depreciation and Amortization	(1,086,973)	(1,076,030)
Total Property and Equipment, Net	187,187	198,130
OTHER LONG-TERM ASSETS
Right-of-Use Asset	401,880	413,595
Total Long-Term Assets	589,067	611,725
Total Assets	2,402,607	1,702,435
CURRENT LIABILITIES
Accounts Payable	350,110	100,754
Current Maturities of Notes Payable	612,490	222,400
Current Maturities of Lease Liability	42,646	41,724
Accrued Expenses	77,299	31,996
Refund Liability Owed to Customers	34,110	10,000
Deferred Income	1,299	1,299
Deferred Income Taxes	7,065
Total Current Liabilities	1,117,954	408,173
LONG-TERM LIABILITIES
Notes Payable, Less Current Maturities	28,337	31,491
Lease Liability, Less Current Maturities	352,734	365,371
Deferred Income	648	972
Deferred Income Taxes	7,065
Total Long-Term Liabilities	388,784	397,834
Total Liabilities	1,506,738	806,007
COMMITMENTS AND CONTINGENCIES (NOTE 8)
Capital Stock Issued and Outstanding:
Common Stock, $1 Par Value	969,834	969,834
Paid-In Capital in Excess of Par	3,134,722	3,134,722
Accumulated Deficit	(5,570,127)	(5,569,568)
Total Stockholders' Equity	895,869	896,428
Total Liabilities and Stockholders' Equity	2,402,607	1,702,435
Prior Cumulative Preferred Stock - Series A
Capital Stock Issued and Outstanding:
Preferred stock, value	500,000	500,000
Prior Cumulative Preferred Stock - Series B
Capital Stock Issued and Outstanding:
Preferred stock, value	500,000	500,000
Cumulative Preferred Stock - Series A
Capital Stock Issued and Outstanding:
Preferred stock, value	1,170,660	1,170,660
Cumulative Preferred Stock - Series B
Capital Stock Issued and Outstanding:
Preferred stock, value	$ 190,780	$ 190,780

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parentheticals) - USD ($)	Sep. 30, 2023	Jun. 30, 2023
Allowance for doubtful accounts on trade receivables (in dollars)	$ 1,896
Common stock, par value (in dollars per share)	$ 1	$ 1
Prior Cumulative Preferred Stock
Preferred stock, par value (in dollars per share)	$ 5	$ 5
Prior Cumulative Preferred Stock - Series A
Preferred stock, liquidation preference (in dollars)	$ 2,467,500	$ 2,460,000
Prior Cumulative Preferred Stock - Series B
Preferred stock, liquidation preference (in dollars)	$ 2,422,500	$ 2,415,000
Convertible Cumulative Preferred
Preferred stock, par value (in dollars per share)	$ 20	$ 20
Cumulative Preferred Stock - Series A
Preferred stock, liquidation preference (in dollars)	$ 5,502,095	$ 5,487,461
Cumulative Preferred Stock - Series B
Preferred stock, liquidation preference (in dollars)	$ 896,674	$ 894,289

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
SALES	$ 1,110,799	$ 1,182,202
COST OF SALES	797,020	786,501
Gross Profit on Sales	313,779	395,701
OPERATING EXPENSES
Selling	100,382	99,340
General and Administrative	199,096	206,369
Total Operating Expenses	299,478	305,709
Income from Operations	14,301	89,992
OTHER INCOME (EXPENSE)
Miscellaneous Income	357	366
Interest Expense	(7,473)	(3,927)
Total Other Income (Expense), net	(7,116)	(3,561)
Income before Income Taxes	7,185	86,431
INCOME TAX BENEFIT (PROVISION)	(7,744)
NET INCOME (LOSS)	$ (559)	$ 86,431
EARNINGS (LOSS) PER SHARE
Basic (in dollars per share)	$ (0.03)	$ 0.06
Diluted (in dollars per share)	$ (0.03)	$ 0.04

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($)	Prior Cumulative Preferred Stock - Series A Preferred Stock	Prior Cumulative Preferred Stock - Series B Preferred Stock	Cumulative Preferred Stock - Series A Preferred Stock	Cumulative Preferred Stock - Series B Preferred Stock	Common Stock	Paid-In Capital	Accumulated Deficit	Total
BALANCE, Beginning of period at Jun. 30, 2022	$ 500,000	$ 500,000	$ 1,170,660	$ 190,780	$ 969,834	$ 3,134,722	$ (5,726,735)	$ 739,261
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income							86,431	86,431
BALANCE, End of period at Sep. 30, 2022	500,000	500,000	1,170,660	190,780	969,834	3,134,722	(5,640,304)	825,692
BALANCE, Beginning of period at Jun. 30, 2023	500,000	500,000	1,170,660	190,780	969,834	3,134,722	(5,569,568)	896,428
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income							(559)	(559)
BALANCE, End of period at Sep. 30, 2023	$ 500,000	$ 500,000	$ 1,170,660	$ 190,780	$ 969,834	$ 3,134,722	$ (5,570,127)	$ 895,869

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss)	$ (559)	$ 86,431
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by/(Used in) Operating Activities:
Depreciation and Amortization	10,943	7,966
Allowance for Bad Debts		237
Deferred Income Amortization	(324)	(324)
Deferred Income Taxes	7,065
Effects of Changes in Operating Assets and Liabilities:
Trade Receivables	(706,807)	(829,667)
Inventories	(24,555)	178,926
Prepaid Expenses	17,722	(30,068)
Accounts Payable	249,356	175,170
Refund Liability Owed to Customers	24,110	21,819
Accrued Expenses	45,303	26,141
Net Cash Used in Operating Activities	(377,746)	(363,369)
CASH FLOWS FROM FINANCING ACTIVITIES
Outstanding Checks in Excess of Bank Balance		19,858
Proceeds from Lines-of-Credit	290,000	330,000
Proceeds from Note Payable - Stockholder	100,000
Principal Payments on Notes Payable	(3,064)
Net Cash Provided by Financing Activities	386,936	349,858
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	9,190	(13,511)
Cash and Cash Equivalents - Beginning of Period	11,295	$ 13,511
CASH AND CASH EQUIVALENTS - END OF PERIOD	$ 20,485

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
SIGNIFICANT ACCOUNTING POLICIES	Sep. 30, 2023
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 SIGNIFICANT ACCOUNTING POLICIES General The condensed consolidated balance sheet of Chase General Corporation (hereinafter referred to as Chase, the Company, we, our, and us) at June 30, 2023 has been taken from audited consolidated financial statements at that date and condensed. The condensed consolidated financial statements as of and for the three months ended September 30, 2023 and for the three months ended September 30, 2022 are unaudited and reflect all normal and recurring accruals and adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position, operating results and cash flows for the interim periods presented in this quarterly report. The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto, together with management’s discussion and analysis of financial condition and results of operations, contained in our Annual Report on Form 10-K for the year ended June 30, 2023. The results of operations for the three months ended September 30, 2023 and cash flows for the three months ended September 30, 2023 are not necessarily indicative of the results for the entire fiscal year ending June 30, 2024. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary to fairly present the financial position, results of operations, and cash flows for the periods have been included. Revenue Recognition The majority of our revenue is derived by fulfilling customer orders for the purchase of our products, including 1) a candy bar marketed under the trade name “Cherry Mash” and 2) coconut, peanut, chocolate, and fudge confectioneries. The Company recognizes revenue at the point in time that control of the ordered product(s) is transferred to the customer, which is typically upon shipment to the customer. Shipping and handling costs incurred to ship product to the customer are recorded within cost of sales. Amounts billed and due from our customers are classified as trade receivables on the consolidated balance sheet and require payment on a short-term basis. Generally, individual orders from customers are accounted for as a single performance obligation. Revenue is measured as the amount of consideration we expect to receive in exchange for fulfilling product orders. Sales, value added, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. The amount of consideration the Company expects to receive and revenue the Company recognizes includes estimates of variable consideration, including costs for trade promotional programs, customer incentives, and allowances and discounts associated with aged or potentially unsaleable products. These estimates are based upon our analysis of the programs offered, historical trends, and expectations regarding customer and consumer participation, sales and payment trends and our experience with payment patterns associated with similar programs offered in the past. The Company reviews and updates these estimates regularly and the impact of any adjustments are recognized in the period the adjustments are identified. NOTE 1 SIGNIFICANT ACCOUNTING POLICIES (cont.) Revenue Recognition (cont.) The majority of the Company’s products are confectionery and confectionery-based and, therefore, exhibit similar economic characteristics, such that they are based on similar ingredients and are marketed and sold through the same channels to the same customers. The Company operates two divisions, Chase Candy Products and Seasonal Candy Products. Chase Candy Products involve production and sale of a candy bar marketed under the trade name “Cherry Mash”. The Seasonal Candy Products involve production and sale of coconut, peanut, chocolate, and fudge confectioneries. Both divisions share a common labor force and utilize the same basic equipment and raw materials. Management considers these two divisions as one reportable segment. The various divisions of revenue are as follows: For the three months ended September 30, 2023 2022 SALES Chase Candy $ 385,147 $ 432,504 Seasonal Candy 725,652 749,698 Total $ 1,110,799 $ 1,182,202 Recently Issued Pronouncements Effective July 1, 2023, the Company adopted ASU 2016-13, Financial Instrument – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments related to the impairment of financial instruments using the modified retrospective approach, which applies Topic 326 at the beginning of the earliest period presented. This guidance, commonly referred to as Current Expected Credit Loss (“CECL”), changes impairment recognition to a model that is based on expected losses rather than incurred losses. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including trade receivables. The Company evaluated and determined the amendment did not have a material affect on the condensed consolidated financial statements. Subsequent Events No other events have occurred subsequent to September 30, 2023, through the date of filing this form, that would require disclosure in this Form 10-Q or would be required to be recognized in the condensed consolidated financial statements as of or for the three month period ended September 30, 2023.

EARNINGS (LOSS) PER SHARE

EARNINGS (LOSS) PER SHARE	3 Months Ended
EARNINGS (LOSS) PER SHARE	Sep. 30, 2023
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE	NOTE 2 EARNINGS (LOSS) PER SHARE The earnings (loss) per share was computed on the weighted average of outstanding common shares during the period. Diluted earnings (loss) per share are calculated by including contingently issuable shares with the weighted average shares outstanding. Three Months Ended September 30, 2023 2022 Net Income (Loss) $ (559) $ 86,431 Preferred Dividend Requirements: 6% Prior Cumulative Preferred, $5 Par Value 15,000 15,000 5% Convertible Cumulative Preferred, $20 Par Value 17,018 17,018 Total Dividend Requirements 32,018 32,018 Net Income (Loss) attributable to Common Stockholders $ (32,577) $ 54,413 Weighted Average Shares - Basic 969,834 969,834 Effect of Contingently Issuable Shares, if Dilutive 1,033,334 1,033,334 Weighted Average Shares - Diluted 2,003,168 2,003,168 Basic Earnings (Loss) per Share $ (0.03) $ 0.06 Diluted Earnings (Loss) per Share $ (0.03) $ 0.04 The Company excludes equity instruments from the calculation of diluted earnings per share if the effect of including such instruments is anti-dilutive. All of the preferred stock, which is convertible into $1,033,334 shares of common stock were excluded at September 30, 2023 as its conversion would have an anti-dilutive effect. Cumulative Preferred Stock dividends in arrears at September 30, 2023 and 2022 totaled $8,877,328 and $8,749,256, respectively. Total dividends in arrears, on a per share basis, consist of the following: Three Months Ended September 30, 2023 2022 6% Convertible: Series A $ 19 $ 19 Series B $ 19 $ 19 5% Convertible: Series A $ 74 $ 73 Series B $ 74 $ 73 The 6% convertible prior cumulative preferred stock may, upon thirty days prior notice, be redeemed by the Corporation at $5.25 per share plus unpaid accrued dividends to date of redemption. In the event of voluntary liquidation, holders of this stock are entitled to receive $5.25 per share plus accrued dividends. It may be exchanged for common stock at the option of the shareholders in the ratio of four common shares for one share of Series A and 3.75 common shares for one share of Series B. NOTE 2 EARNINGS (LOSS) PER SHARE (cont.) The Company has the privilege of redemption of 5% convertible cumulative preferred stock at $21 per share plus unpaid accrued dividends. In the event of voluntary or involuntary liquidation, holders of this stock are entitled to receive $20 per share plus unpaid accrued dividends. It may be exchanged for common stock at the option of the shareholders, in the ratio of 3.795 common shares for one of preferred.

NOTES PAYABLE

NOTES PAYABLE	3 Months Ended
NOTES PAYABLE	Sep. 30, 2023
NOTES PAYABLE
NOTES PAYABLE	NOTE 3 NOTES PAYABLE The Company’s notes payable consists of: September 30, June 30, Payee Terms 2023 2023 Nodaway Valley Bank $500,000 line-of-credit agreement expiring on January 4, 2024, with a variable interest rate at prime but not less than 5% (8.5% as of September 30, 2023). The line of credit is collateralized by substantially all assets of the Company. $ 500,000 $ 210,000 Note Payable - Stockholder $100,000 unsecured promissory note from stockholder due December 30, 2023, with interest rate at 8.25% per annum. 100,000 — Ford Motor Credit Company $1,126 monthly payments, interest of 2.90%; final payment due November 2026, secured by a vehicle. 40,827 43,891 Total 640,827 253,891 Less Current Portion 612,490 222,400 Long-Term Portion $ 28,337 $ 31,491 September 30, Amount 2024 $ 612,490 2025 12,857 2026 13,235 2027 2,245 Total $ 640,827

INCOME TAXES

INCOME TAXES	3 Months Ended
INCOME TAXES	Sep. 30, 2023
INCOME TAXES
INCOME TAXES	NOTE 4 INCOME TAXES The Company follows the provisions for uncertain tax positions as addressed in Financial Accounting Standards Board Accounting Standards Codification 740-10. The Company recorded an income tax provision of $7,744 for the three months ended September 30, 2023 as the Company recognized a return to provision adjustment related to the recognition of a net deferred tax liability as well as federal and state income tax payable accounts. As the company is utilizing 80% limited net operating loss, the current year taxable income is partially offset, resulting in a current tax liability. The Company recognized a net deferred tax liability for unrecognized tax benefits and costs at September 30, 2023. The Company has no material tax positions at September 30, 2023, for which the ultimate deductibility is highly certain, but for which there is uncertainty about the timing of such deductibility. The Company had no accruals for interest or penalties at September 30, 2023. The Company’s federal income tax returns for the fiscal years ended 2021, 2022, and 2023 are subject to examination by the Internal Revenue Service taxing authority.

SUPPLEMENTAL DISCLOSURES OF CAS

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION	3 Months Ended
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION	Sep. 30, 2023
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION	NOTE 5 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Three Months Ended September 30, 2023 2022 Supplemental Cash Flow Information: Interest paid $ 313 $ —

DISCLOSURES ABOUT FAIR VALUE OF

DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS	3 Months Ended
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS	Sep. 30, 2023
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE 6 DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS The Company’s financial instruments consist principally of cash and cash equivalents, trade receivables and payables, and lines-of-credit. There are no significant differences between the carrying value and fair value of any of these financial instruments.

COMMITMENT, CONTINGENCIES, AND

COMMITMENT, CONTINGENCIES, AND RELATED PARTY TRANSACTIONS	3 Months Ended
COMMITMENT, CONTINGENCIES, AND RELATED PARTY TRANSACTIONS	Sep. 30, 2023
COMMITMENT, CONTINGENCIES, AND RELATED PARTY TRANSACTIONS
COMMITMENT, CONTINGENCIES, AND RELATED PARTY TRANSACTIONS	NOTE 7 COMMITMENT, CONTINGENCIES, AND RELATED PARTY TRANSACTIONS The Company leases its office and manufacturing facility located in St. Joseph, Missouri under an operating lease from an entity that is partially owned by the son of the Chief Executive Officer of the Company. The lease term is from February 1, 2005 through March 31, 2025 with an option to extend for an additional term of five years. During the year ended June 30, 2023, the Company determined the exercise of the renewal option is reasonably assured and has therefore remeasured the right-of-use asset and lease liability to include the additional five years at the current rate so that the new term expires on March 31, 2030. The lease currently requires payments of $6,500 per month, as noted the Company does not believe the payments in the renewal period will vary significantly from the current amount. An operating lease right-of-use asset and lease liability was recognized based on the present value of minimum lease payments over the remaining lease term. The Company’s operating lease has a remaining term of 6.5 years and the present value of the lease payments is calculated using the Company’s estimated incremental borrowing rate of 7.6% as of the remeasurement date. Operating lease expense is recognized on a straight-line basis over the lease term. NOTE 7 COMMITMENT, CONTINGENCIES, AND RELATED PARTY TRANSACTIONS (cont.) The Company’s lease agreement does not contain any residual value guarantees. Additionally, any other short-term leases are immaterial. The Company elected the practical expedient to not separate lease and non-lease components and also elected the short-term practical expedient for all leases that qualify. As a result, the Company will not recognize right-of-use assets or liabilities for short-term leases that qualify for the short-term practical expedient, but instead will recognize the lease payments as lease cost on a straight-line basis over the lease term. Cash paid for operating lease liabilities was $19,500 and operating lease expense was $19,500 for the three months ended September 30, 2023, of which, $17,891 is included in cost of sales and $1,609 is included in general and administrative expenses. Minimum annual payments required under the existing operating lease liability that has initial or remaining noncancelable terms in excess of one year as of September 30, 2023 is as follows: Twelve Months Ending September 30, Amount 2024 $ 71,500 2025 78,000 2026 78,000 2027 78,000 2028 78,000 Thereafter 123,500 Total Lease Payments 507,000 Less: Imputed Interest (111,620) Total Lease Liability $ 395,380

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Policies)	Sep. 30, 2023
SIGNIFICANT ACCOUNTING POLICIES
General	General The condensed consolidated balance sheet of Chase General Corporation (hereinafter referred to as Chase, the Company, we, our, and us) at June 30, 2023 has been taken from audited consolidated financial statements at that date and condensed. The condensed consolidated financial statements as of and for the three months ended September 30, 2023 and for the three months ended September 30, 2022 are unaudited and reflect all normal and recurring accruals and adjustments which are, in the opinion of management, necessary for a fair presentation of the financial position, operating results and cash flows for the interim periods presented in this quarterly report. The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto, together with management’s discussion and analysis of financial condition and results of operations, contained in our Annual Report on Form 10-K for the year ended June 30, 2023. The results of operations for the three months ended September 30, 2023 and cash flows for the three months ended September 30, 2023 are not necessarily indicative of the results for the entire fiscal year ending June 30, 2024. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary to fairly present the financial position, results of operations, and cash flows for the periods have been included.
Revenue Recognition	Revenue Recognition The majority of our revenue is derived by fulfilling customer orders for the purchase of our products, including 1) a candy bar marketed under the trade name “Cherry Mash” and 2) coconut, peanut, chocolate, and fudge confectioneries. The Company recognizes revenue at the point in time that control of the ordered product(s) is transferred to the customer, which is typically upon shipment to the customer. Shipping and handling costs incurred to ship product to the customer are recorded within cost of sales. Amounts billed and due from our customers are classified as trade receivables on the consolidated balance sheet and require payment on a short-term basis. Generally, individual orders from customers are accounted for as a single performance obligation. Revenue is measured as the amount of consideration we expect to receive in exchange for fulfilling product orders. Sales, value added, and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. The amount of consideration the Company expects to receive and revenue the Company recognizes includes estimates of variable consideration, including costs for trade promotional programs, customer incentives, and allowances and discounts associated with aged or potentially unsaleable products. These estimates are based upon our analysis of the programs offered, historical trends, and expectations regarding customer and consumer participation, sales and payment trends and our experience with payment patterns associated with similar programs offered in the past. The Company reviews and updates these estimates regularly and the impact of any adjustments are recognized in the period the adjustments are identified. NOTE 1 SIGNIFICANT ACCOUNTING POLICIES (cont.) Revenue Recognition (cont.) The majority of the Company’s products are confectionery and confectionery-based and, therefore, exhibit similar economic characteristics, such that they are based on similar ingredients and are marketed and sold through the same channels to the same customers. The Company operates two divisions, Chase Candy Products and Seasonal Candy Products. Chase Candy Products involve production and sale of a candy bar marketed under the trade name “Cherry Mash”. The Seasonal Candy Products involve production and sale of coconut, peanut, chocolate, and fudge confectioneries. Both divisions share a common labor force and utilize the same basic equipment and raw materials. Management considers these two divisions as one reportable segment. The various divisions of revenue are as follows: For the three months ended September 30, 2023 2022 SALES Chase Candy $ 385,147 $ 432,504 Seasonal Candy 725,652 749,698 Total $ 1,110,799 $ 1,182,202
Recently Issued Pronouncements	Recently Issued Pronouncements Effective July 1, 2023, the Company adopted ASU 2016-13, Financial Instrument – Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments related to the impairment of financial instruments using the modified retrospective approach, which applies Topic 326 at the beginning of the earliest period presented. This guidance, commonly referred to as Current Expected Credit Loss (“CECL”), changes impairment recognition to a model that is based on expected losses rather than incurred losses. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including trade receivables. The Company evaluated and determined the amendment did not have a material affect on the condensed consolidated financial statements.
Subsequent Events	Subsequent Events No other events have occurred subsequent to September 30, 2023, through the date of filing this form, that would require disclosure in this Form 10-Q or would be required to be recognized in the condensed consolidated financial statements as of or for the three month period ended September 30, 2023.

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Tables)	Sep. 30, 2023
SIGNIFICANT ACCOUNTING POLICIES
Schedule of divisions of revenue	For the three months ended September 30, 2023 2022 SALES Chase Candy $ 385,147 $ 432,504 Seasonal Candy 725,652 749,698 Total $ 1,110,799 $ 1,182,202

EARNINGS (LOSS) PER SHARE (Tabl

EARNINGS (LOSS) PER SHARE (Tables)	3 Months Ended
EARNINGS (LOSS) PER SHARE (Tables)	Sep. 30, 2023
EARNINGS (LOSS) PER SHARE
Schedule of earnings per share computed on the weighted average of outstanding common shares	Three Months Ended September 30, 2023 2022 Net Income (Loss) $ (559) $ 86,431 Preferred Dividend Requirements: 6% Prior Cumulative Preferred, $5 Par Value 15,000 15,000 5% Convertible Cumulative Preferred, $20 Par Value 17,018 17,018 Total Dividend Requirements 32,018 32,018 Net Income (Loss) attributable to Common Stockholders $ (32,577) $ 54,413 Weighted Average Shares - Basic 969,834 969,834 Effect of Contingently Issuable Shares, if Dilutive 1,033,334 1,033,334 Weighted Average Shares - Diluted 2,003,168 2,003,168 Basic Earnings (Loss) per Share $ (0.03) $ 0.06 Diluted Earnings (Loss) per Share $ (0.03) $ 0.04
Schedule of total dividends in arrears, on a per share basis	Three Months Ended September 30, 2023 2022 6% Convertible: Series A $ 19 $ 19 Series B $ 19 $ 19 5% Convertible: Series A $ 74 $ 73 Series B $ 74 $ 73

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	3 Months Ended
NOTES PAYABLE (Tables)	Sep. 30, 2023
NOTES PAYABLE
Schedule of debt consists of lines-of -credit	September 30, June 30, Payee Terms 2023 2023 Nodaway Valley Bank $500,000 line-of-credit agreement expiring on January 4, 2024, with a variable interest rate at prime but not less than 5% (8.5% as of September 30, 2023). The line of credit is collateralized by substantially all assets of the Company. $ 500,000 $ 210,000 Note Payable - Stockholder $100,000 unsecured promissory note from stockholder due December 30, 2023, with interest rate at 8.25% per annum. 100,000 — Ford Motor Credit Company $1,126 monthly payments, interest of 2.90%; final payment due November 2026, secured by a vehicle. 40,827 43,891 Total 640,827 253,891 Less Current Portion 612,490 222,400 Long-Term Portion $ 28,337 $ 31,491
Schedule of future minimum payments of long term debt	September 30, Amount 2024 $ 612,490 2025 12,857 2026 13,235 2027 2,245 Total $ 640,827

SUPPLEMENTAL DISCLOSURES OF C_2

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION (Tables)	3 Months Ended
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION (Tables)	Sep. 30, 2023
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Schedule of supplemental disclosures of cash flow information	Three Months Ended September 30, 2023 2022 Supplemental Cash Flow Information: Interest paid $ 313 $ —

COMMITMENT, CONTINGENCIES, AN_2

COMMITMENT, CONTINGENCIES, AND RELATED PARTY TRANSACTIONS (Tables)	3 Months Ended
	Sep. 30, 2023
COMMITMENT, CONTINGENCIES, AND RELATED PARTY TRANSACTIONS
Schedule of annual payments	Twelve Months Ending September 30, Amount 2024 $ 71,500 2025 78,000 2026 78,000 2027 78,000 2028 78,000 Thereafter 123,500 Total Lease Payments 507,000 Less: Imputed Interest (111,620) Total Lease Liability $ 395,380

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	3 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue [Line Items]
Sales	$ 1,110,799	$ 1,182,202
Sales - Chase Candy
Disaggregation of Revenue [Line Items]
Sales	385,147	432,504
Sales - Seasonal Candy
Disaggregation of Revenue [Line Items]
Sales	$ 725,652	$ 749,698

SIGNIFICANT ACCOUNTING POLICI_5

SIGNIFICANT ACCOUNTING POLICIES - Additional information (Details)	3 Months Ended
	Sep. 30, 2023 segment division
SIGNIFICANT ACCOUNTING POLICIES
Number of product divisions \| division	2
Number of reportable segment \| segment	1

EARNINGS (LOSS) PER SHARE (Deta

EARNINGS (LOSS) PER SHARE (Details) - USD ($)	3 Months Ended
EARNINGS (LOSS) PER SHARE (Details) - USD ($)	Sep. 30, 2023	Sep. 30, 2022
Class of Stock [Line Items]
Net Income (Loss)	$ (559)	$ 86,431
Preferred Dividend Requirements:
Total Dividend Requirements	32,018	32,018
Net Income (Loss) attributable to Common Stockholders	$ (32,577)	$ 54,413
Weighted Average Shares - Basic (in shares)	969,834	969,834
Effect of Contingently Issuable Shares, if Dilutive	1,033,334	1,033,334
Weighted Average Shares - Diluted (in shares)	2,003,168	2,003,168
Basic Earnings (Loss) per Share	$ (0.03)	$ 0.06
Diluted Earnings (Loss) per Share	$ (0.03)	$ 0.04
6% Prior Cumulative Preferred, $5 par value
Preferred Dividend Requirements:
Total Dividend Requirements	$ 15,000	$ 15,000
5% Convertible Cumulative Preferred, $20 Par Value
Preferred Dividend Requirements:
Total Dividend Requirements	$ 17,018	$ 17,018

EARNINGS (LOSS) PER SHARE (Pare

EARNINGS (LOSS) PER SHARE (Parenthetical) (Details) - $ / shares	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
6% Prior Cumulative Preferred, $5 par value
Class of Stock [Line Items]
Stated percentage of preferred stock	6%	6%
Preferred stock, par value (in dollars per share)	$ 5	$ 5
5% Convertible Cumulative Preferred, $20 Par Value
Class of Stock [Line Items]
Stated percentage of preferred stock	5%	5%
Preferred stock, par value (in dollars per share)	$ 20	$ 20

EARNINGS (LOSS) PER SHARE - Cum

EARNINGS (LOSS) PER SHARE - Cumulative Preferred Stock dividends (Details) - $ / shares	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Prior Cumulative Preferred Stock - Series A
Class of Stock [Line Items]
Total dividends in arrears	$ 19	$ 19
Prior Cumulative Preferred Stock - Series B
Class of Stock [Line Items]
Total dividends in arrears	19	19
Cumulative Preferred Stock - Series A
Class of Stock [Line Items]
Total dividends in arrears	74	73
Cumulative Preferred Stock - Series B
Class of Stock [Line Items]
Total dividends in arrears	$ 74	$ 73

EARNINGS (LOSS) PER SHARE - Add

EARNINGS (LOSS) PER SHARE - Additional information (Details) - USD ($)	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Class of Stock [Line Items]
Anti-dilutive shares issuable upon conversion of preferred stock	1,033,334
Total cumulative preferred stock dividends in arrears	$ 8,877,328	$ 8,749,256
6% Prior Cumulative Preferred, $5 par value
Class of Stock [Line Items]
Redemption price per share (in dollars per share)	$ 5.25
Preferred stock, liquidation preference per share (in dollars per share)	$ 5.25
Stated percentage of preferred stock	6%	6%
Prior Cumulative Preferred Stock - Series A
Class of Stock [Line Items]
Number of common stock exchanged for each preferred stock held	1
Number of common stock exchanged for each preferred stock held	4
Prior Cumulative Preferred Stock - Series B
Class of Stock [Line Items]
Number of common stock exchanged for each preferred stock held	1
Number of common stock exchanged for each preferred stock held	3.75
5% Convertible Cumulative Preferred, $20 Par Value
Class of Stock [Line Items]
Redemption price per share (in dollars per share)	$ 21
Preferred stock, liquidation preference per share (in dollars per share)	$ 20
Number of common stock exchanged for each preferred stock held	1
Number of common stock exchanged for each preferred stock held	3.795
Stated percentage of preferred stock	5%	5%

NOTES PAYABLE - Debt (Details)

NOTES PAYABLE - Debt (Details) - USD ($)	Sep. 30, 2023	Jun. 30, 2023
Debt Instrument [Line Items]
Total	$ 640,827	$ 253,891
Less Current Portion	612,490	222,400
Long-Term Portion	28,337	31,491
Nodaway Valley Bank $500,000 line-of-credit agreement expiring on January 4, 2024, with a variable interest rate at prime but not less than 5%. The line of credit is collateralized by substantially all assets of the Company.
Debt Instrument [Line Items]
Total	500,000	210,000
Note Payable Stockholder $100000 unsecured Promissory Note From Stockholder Due 2023 December Thirty With Interest Rate At Eight Point Five Percentage [Member]
Debt Instrument [Line Items]
Total	100,000
Ford Motor Credit Company, LLC $1,126 monthly payments, interest of 2.90%; final payment due November 2026, secured by a vehicle
Debt Instrument [Line Items]
Total	$ 40,827	$ 43,891

NOTES PAYABLE - Debt (Narrative

NOTES PAYABLE - Debt (Narratives) (Details) - USD ($)	3 Months Ended	12 Months Ended
NOTES PAYABLE - Debt (Narratives) (Details) - USD ($)	Sep. 30, 2023	Jun. 30, 2023
Nodaway Valley Bank $500,000 line-of-credit agreement expiring on January 4, 2024, with a variable interest rate at prime but not less than 5%. The line of credit is collateralized by substantially all assets of the Company.
Debt Instrument [Line Items]
Line-of-credit agreement, amount	$ 500,000	$ 500,000
Line of Credit Facility, Expiration date	Jan. 04, 2024	Jan. 04, 2024
Interest rate	5%	5%
Note Payable Stockholder $100000 unsecured Promissory Note From Stockholder Due 2023 December Thirty With Interest Rate At Eight Point Five Percentage [Member]
Debt Instrument [Line Items]
Interest rate	8.25%	8.25%
Unsecured promissory note	$ 100,000	$ 100,000
Ford Motor Credit Company, LLC $1,126 monthly payments, interest of 2.90%; final payment due November 2026, secured by a vehicle
Debt Instrument [Line Items]
Line-of-credit agreement, amount	$ 1,126	$ 1,126
Interest rate	2.90%	2.90%

NOTES PAYABLE - Debt Minimum Pa

NOTES PAYABLE - Debt Minimum Payments (Details)	Sep. 30, 2023 USD ($)
NOTES PAYABLE
2024	$ 612,490
2025	12,857
2026	13,235
2027	2,245
Total	$ 640,827

INCOME TAXES (Details)

INCOME TAXES (Details)	3 Months Ended
INCOME TAXES (Details)	Sep. 30, 2023 USD ($)
INCOME TAXES
Provision for income tax	$ 7,744
Accruals for interest or penalties	$ 0

SUPPLEMENTAL DISCLOSURES OF C_3

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION (Details)	3 Months Ended
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION (Details)	Sep. 30, 2023 USD ($)
Supplemental Cash Flow Information:
Interest paid	$ 313

COMMITMENT, CONTINGENCIES, AN_3

COMMITMENT, CONTINGENCIES, AND RELATED PARTY TRANSACTIONS - Future minimum lease payments (Details)	Sep. 30, 2023 USD ($)
COMMITMENT, CONTINGENCIES, AND RELATED PARTY TRANSACTIONS
2024	$ 71,500
2025	78,000
2026	78,000
2027	78,000
2028	78,000
Thereafter	123,500
Total Lease Payments	507,000
Less: Imputed Interest	(111,620)
Total Lease Liability	$ 395,380

COMMITMENT, CONTINGENCIES, AN_4

COMMITMENT, CONTINGENCIES, AND RELATED PARTY TRANSACTIONS - Additional Information (Details)	3 Months Ended
	Sep. 30, 2023 USD ($)
Long-term Purchase Commitment [Line Items]
Additional lease period	5 years
Option to extend	true
Lease payments per month	$ 6,500
Lease, Practical Expedient, Lessor Single Lease Component [true false]	true
Operating lease remaining term	6 years 6 months
Estimated incremental borrowing rate	7.60%
Operating lease liabilities	$ 19,500
Operating lease expense	19,500
Cost of sales
Long-term Purchase Commitment [Line Items]
Operating lease liabilities	17,891
General and administrative expenses
Long-term Purchase Commitment [Line Items]
Operating lease liabilities	$ 1,609