Napco Security (NSSC) 10-K15 Sep 202020 FY Annual reportFinancial data

Company Profile

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
Document And Entity Information - USD ($)	Jun. 30, 2020	Sep. 14, 2020	Dec. 31, 2019
Document And Entity Information
Document Type	10-K
Amendment Flag	false
Document Period End Date	Jun. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Entity Registrant Name	NAPCO SECURITY TECHNOLOGIES, INC
Entity Central Index Key	0000069633
Current Fiscal Year End Date	--06-30
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Interactive Data Current	Yes
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 339,054,796
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	NSSC
Entity Common Stock, Shares Outstanding		18,347,351

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019
CURRENT ASSETS
Cash and cash equivalents	$ 18,248	$ 8,028
Accounts receivable, net of allowance for doubtful accounts of $326 and $88 at March 31, 2020 and June 30, 2019, respectively, and other reserves	22,932	25,970
Inventories	35,231	29,576
Prepaid expenses and other current assets	2,049	1,881
Total Current Assets	78,460	65,455
Inventories - non-current	6,524	5,262
Property, plant and equipment, net	8,088	7,694
Intangible assets, net	5,116	7,232
Operating lease asset	7,395	0
Other assets	255	265
TOTAL ASSETS	105,838	85,908
CURRENT LIABILITIES
Accounts payable	6,547	5,135
Accrued expenses	5,744	6,273
Accrued salaries and wages	2,181	2,416
Current portion of long-term debt	1,794	0
Accrued income taxes	1,148	548
Total Current Liabilities	17,414	14,372
Long term debt	2,110	0
Deferred income taxes	112	72
Accrued income taxes	1,188	292
Long term operating lease liabilities	7,113	0
Total Liabilities	27,937	14,736
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Common Stock, par value $0.01 per share; 40,000,000 shares authorized; 21,241,066 and 21,227,094 shares issued; and 18,347,351 and 18,477,874 shares outstanding, respectively	212	212
Additional paid-in capital	17,766	17,103
Retained earnings	79,444	70,924
Less: Treasury Stock, at cost (2,893,715 and 2,749,310 shares)	(19,521)	(17,067)
TOTAL STOCKHOLDERS' EQUITY	77,901	71,172
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 105,838	$ 85,908

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019
CONSOLIDATED BALANCE SHEETS
Allowance for Doubtful Accounts Receivable	$ 326	$ 88
Common Stock, Par Value (in dollars per share)	$ 0.01	$ 0.01
Common Stock, shares authorized	40,000,000	40,000,000
Common Stock, shares issued	21,241,066	21,227,094
Common Stock, shares outstanding	18,347,351	18,477,874
Treasury Stock, shares	2,893,715	2,749,310

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019
Net sales:
Equipment sales	$ 77,314	$ 85,505
Service sales	24,045	17,427
Total Revenues	101,359	102,932
Cost of sales:
Equipment related expenses	53,434	55,240
Service related expenses	4,333	3,802
Cost of sales	57,767	59,042
Gross Profit	43,592	43,890
Research and development	7,257	7,212
Selling, general, and administrative expenses	23,670	23,212
Impairment of intangible asset	1,852	0
Operating expenses	32,779	30,424
Operating Income	10,813	13,466
Other expense:
Interest expense, net	9	21
Income before Provision for Income Taxes	10,804	13,445
Provision for Income Taxes	2,284	1,222
Net Income	$ 8,520	$ 12,223
Income per share:
Basic (in dollars per share)	$ 0.46	$ 0.66
Diluted (in dollars per share)	$ 0.46	$ 0.66
Weighted average number of shares outstanding:
Basic (per share)	18,444,000	18,574,000
Diluted (per share)	18,493,000	18,624,000

CONSOLIDATED STATEMENT OF STOCK

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($)	Common Stock	Additional Paid-in Capital	Treasury Stock	Retained Earnings	Total
Balance at Jun. 30, 2018	$ 212,000	$ 16,890,000	$ (13,069,000)	$ 59,420,000	$ 63,453,000
Balance (in shares) at Jun. 30, 2018	21,204,327		(2,475,245)
Implementation of ASC606	$ 0	0	$ 0	(719,000)	(719,000)
Repurchase of treasury shares	$ 0	0	$ (3,998,000)	0	(3,998,000)
Repurchase of treasury shares (in shares)	0		(274,065)
Stock Options Exercised	$ 0	53,000	$ 0	0	53,000
Stock Options Exercised (in shares)	22,767		0
Stock-based compensation expense	$ 0	160,000	$ 0	0	160,000
Net income	0	0	0	12,223,000	12,223,000
Balance at Jun. 30, 2019	$ 212,000	17,103,000	$ (17,067,000)	70,924,000	71,172,000
Balance (in shares) at Jun. 30, 2019	21,227,094		(2,749,310)
Repurchase of treasury shares	$ 0	0	$ (2,454,000)	0	(2,454,000)
Repurchase of treasury shares (in shares)	0		(144,405)
Stock Options Exercised	$ 0	80,000	$ 0	0	80,000
Stock Options Exercised (in shares)	13,972
Stock-based compensation expense	$ 0	583,000	0	0	583,000
Net income	0	0	0	8,520,000	8,520,000
Balance at Jun. 30, 2020	$ 212,000	$ 17,766,000	$ (19,521,000)	$ 79,444,000	$ 77,901,000
Balance (in shares) at Jun. 30, 2020	21,241,066		(2,893,715)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 8,520	$ 12,223
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,495	1,409
Impairment of intangible asset	1,852	0
Provision for doubtful accounts	238	(26)
Change to inventory obsolescence reserve	(124)	(272)
Deferred income taxes	40	755
Stock based compensation expense	583	160
Changes in operating assets and liabilities:
Accounts receivable	2,800	(1,440)
Inventories	(6,793)	(5,991)
Prepaid expenses and other current assets	(168)	318
Other assets	0	(11)
Accounts payable, accrued expenses, accrued salaries and wages, accrued income taxes	1,862	1,528
Net Cash Provided by Operating Activities	10,305	8,653
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant, and equipment	(1,615)	(1,988)
Net Cash Used in Investing Activities	(1,615)	(1,988)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term debt	3,904	0
Proceeds from stock option exercises	80	53
Cash paid for purchase of treasury stock	(2,454)	(3,998)
Net Cash Provided by (Used in) Financing Activities	1,530	(3,945)
Net Change in Cash and Cash Equivalents	10,220	2,720
CASH AND CASH EQUIVALENTS - Beginning	8,028	5,308
CASH AND CASH EQUIVALENTS - Ending	18,248	8,028
SUPPLEMENTAL CASH FLOW INFORMATION
Interest paid, net	29	23
Income taxes paid	749	262
Surrender of Common Shares	$ 0	$ 8

Nature of Business and Summary

Nature of Business and Summary of Significant Accounting Policies	12 Months Ended
	Jun. 30, 2020
Nature of Business and Summary of Significant Accounting Policies
Nature of Business and Summary of Significant Accounting Policies	NOTE 1 - Nature of Business and Summary of Significant Accounting Policies Nature of Business : Napco Security Technologies, Inc (“NAPCO”, “the Company”, “we”) is one of the leading manufacturers and designers of high-tech electronic security devices, as well as a leading provider of school safety solutions. We offer a diversified array of security products, encompassing access control systems, door-locking products, intrusion and fire alarm systems and video surveillance products. These products are used for commercial, residential, institutional, industrial and governmental applications, and are sold worldwide principally to independent distributors, dealers and installers of security equipment. We have experienced significant growth in recent years, primarily driven by fast growing recurring service revenues generated from wireless communication services for intrusion and fire alarm systems, as well as our school security products that are designed to meet the increasing needs to enhance school security as a result of on-campus shooting and violence in the U.S. The Company’s fiscal year begins on July 1 and ends on June 30. Historically, the end users of the Company’s products want to install its products prior to the summer; therefore sales of its products historically peak in the period April 1 through June 30, the Company’s fiscal fourth quarter, and are reduced in the period July 1 through September 30, the Company’s fiscal first quarter. In addition, demand for our products is affected by the housing and construction markets. Deterioration of the current economic conditions may also affect this trend. Our fourth quarter of fiscal 2020 reflects the challenging business environment resulting from the COVID-19 pandemic. The COVID-19 pandemic has caused difficulties for security equipment professionals getting access to both commercial and residential installation sites. The Company believes this access issue is an industry-wide issue related to COVID-19 and not reflective of the loss of any market share unique to the Company or any long-term negative reflection of the post-pandemic vibrancy of the security industry as a whole. Significant Accounting Policies : Principles of Consolidation The consolidated financial statements include the accounts of Napco Security Technologies, Inc. and all of its wholly-owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation. Accounting Estimates The preparation of financial statements in conformity with Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent gains and losses at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Critical estimates include management’s judgments associated with reserves for sales returns and allowances, allowance for doubtful accounts, inventory reserves, valuation of intangible assets and income taxes. Actual results could differ from those estimates. Fair Value of Financial Instruments The methods and assumptions used to estimate the fair value of the following classes of financial instruments were: Current Assets and Current Liabilities - The carrying amount of cash and cash equivalents, certificates of deposits, current receivables and payables and certain other short-term financial instruments approximate their fair value as of June 30, 2020 and 2019 due to their short-term maturities. Long-term debt and lease liabilities reflect fair value based on prevailing market rates. Cash and Cash Equivalents Cash and cash equivalents include approximately $460,000 of short-term time deposits at June 30, 2020 and 2019. The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company has cash balances in banks in excess of the maximum amount insured by the FDIC and other international agencies as of June 30, 2020 and 2019. The Company has not historically experienced any credit losses with balances in excess of FDIC limits. Accounts Receivable Accounts receivable is stated net of the reserves for doubtful accounts of $326,000 and $88,000 as of June 30, 2020 and 2019, respectively. Our reserves for doubtful accounts are subjective critical estimates that have a direct impact on reported net earnings. These reserves are based upon the evaluation of our accounts receivable aging, specific exposures, sales levels and historical trends. Inventories Inventories are valued at the lower of cost or net realizable value, with cost being determined on the first-in, first-out (FIFO) method. The reported net value of inventory includes finished saleable products, work-in-process and raw materials that will be sold or used in future periods. Inventory costs include raw materials, direct labor and overhead. The Company’s overhead expenses are applied based, in part, upon estimates of the proportion of those expenses that are related to procuring and storing raw materials as compared to the manufacture and assembly of finished products. These proportions, the method of their application, and the resulting overhead included in ending inventory, are based in part on subjective estimates and actual results could differ from those estimates. In addition, the Company records an inventory obsolescence reserve, which represents any excess of the cost of the inventory over its estimated realizable value, based on various product sales projections. This reserve is calculated using an estimated obsolescence percentage applied to the inventory based on age, historical trends, requirements to support forecasted sales, and the ability to find alternate applications of its raw materials and to convert finished product into alternate versions of the same product to better match customer demand. In addition, and as necessary, the Company may establish specific reserves for future known or anticipated events. There is inherent professional judgment and subjectivity made by both production and engineering members of management in determining the estimated obsolescence percentage. The Company also regularly reviews the period over which its inventories will be converted to sales. Any inventories expected to convert to sales beyond 12 months from the balance sheet date are classified as non-current. Property, Plant, and Equipment Property, plant, and equipment are carried at cost less accumulated depreciation. Expenditures for maintenance and repairs are charged to expense as incurred; costs of major renewals and improvements are capitalized. At the time property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are eliminated from the asset and accumulated depreciation accounts and the profit or loss on such disposition is reflected in income. Depreciation is recorded over the estimated service lives of the related assets using primarily the straight-line method. Amortization of leasehold improvements is calculated by using the straight-line method over the estimated useful life of the asset or lease term, whichever is shorter. Intangible Assets Intangible assets determined to have indefinite lives are not amortized but are tested for impairment at least annually. Intangible assets with definite lives are amortized over their useful lives. Infinite-lived intangible assets are reviewed for impairment at least annually at the Company’s fiscal year end of June 30 or more often whenever there is an indication that the carrying amount may not be recovered. The Company’s acquisition of substantially all of the assets and certain liabilities of G. Marks Hardware, Inc. (“Marks”) in August 2008 included intangible assets recorded at fair value on the date of acquisition. The customer relationships are amortized over their estimated useful lives of twenty years. The Marks trade name was deemed to have an indefinite life. At the conclusion of fiscal 2020, the Company determined that the trade-name was impaired. Accordingly, the Company recorded an impairment charge of $1,852,000 and reclassified the remaining balance of the underlying asset from indefinite-lived to a long-lived asset with a remaining useful life of 20 years as of June 30, 2020. Changes in intangible assets are as follows (in thousands): June 30, 2020 June 30, 2019 Carrying Accumulated Net book Carrying Accumulated Net book value amortization value value amortization value Customer relationships $ 9,800 $ (8,732) $ 1,068 $ 9,800 $ (8,468) $ 1,332 Trade name 4,048 — 4,048 5,900 — 5,900 $ 13,848 $ (8,732) $ 5,116 $ 15,700 $ (8,468) $ 7,232 Amortization expense for intangible assets subject to amortization was approximately $264,000 and $313,000 for the fiscal years ended June 30, 2020 and 2019, respectively. Amortization expense for each of the next five fiscal years is estimated to be as follows: 2021 - $425,000; 2022 - $390,000; 2023 - $362,000; 2024 - $336,000; and 2025 - $315,000. The weighted average remaining amortization period for intangible assets was 17.5 years and 9.1 years at June 30, 2020 and 2019, respectively. Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets in question may not be recoverable. Impairment would be recorded in circumstances where undiscounted cash flows expected to be generated by an asset are less than the carrying value of that asset. Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification ("ASC"), Topic 606, Revenue from Contracts with Customers , which the Company adopted effective July 1, 2018. Accordingly, the Company recognizes revenue when its customers obtain control of its products or services, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods and services. See Note 2 - Revenue Recognition for additional accounting policies and transition disclosures. Advertising and Promotional Costs Advertising and promotional costs are included in "Selling, General and Administrative" expenses in the consolidated statements of income and are expensed as incurred. Advertising expense for fiscal years ended June 30, 2020 and 2019 was $1,722,000 and $2,047,000, respectively. Research and Development Costs Research and development costs incurred by the Company are charged to expense as incurred and are included in operating expenses in the consolidated statements of income. Company-sponsored research and development expense for the fiscal years ended June 30, 2020 and 2019 was $7,257,000 and $7,212,000, respectively. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company measures and recognizes the tax implications of positions taken or expected to be taken in its tax returns on an ongoing basis. Net Income per Share Basic net income per common share (Basic EPS) is computed by dividing net income by the weighted average number of common shares outstanding. Diluted net income per common share (Diluted EPS) is computed by dividing net income by the weighted average number of common shares and dilutive common share equivalents and convertible securities then outstanding. The following provides a reconciliation of information used in calculating the per share amounts for the fiscal years ended June 30 (in thousands, except per share data): Weighted Average Net Income per Net Income Shares Share 2020 2019 2020 2019 2020 2019 Basic EPS $ 8,520 $ 12,223 18,444 18,574 $ 0.46 $ 0.66 Effect of Dilutive Securities: Stock Options — — 49 50 — — Diluted EPS $ 8,520 $ 12,223 18,493 18,624 $ 0.46 $ 0.66 Options to purchase 38,819 and 2,957 shares of common stock were excluded for the fiscal years ended June 30, 2020 and 2019, respectively, and were not included in the computation of Diluted EPS because their inclusion would be anti-dilutive. These options were still outstanding at the end of the respective periods. Stock-Based Compensation The Company has established three share incentive programs as discussed in Note 8. Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense on a straight-line basis over the vesting period. Determining the fair value of share-based awards at the grant date requires assumptions and judgments about expected volatility and forfeiture rates, among other factors. Stock-based compensation costs of $583,000 and $160,000 were recognized for the fiscal years ended June 30, 2020 and 2019, respectively. Foreign Currency The Company has determined the functional currency of all foreign subsidiaries is the U.S Dollar. All foreign operations are considered a direct and integral part or extension of the Company’s operations. The day-to-day operations of all foreign subsidiaries are dependent on the economic environment of the U.S Dollar. Therefore, no realized and unrealized gains and losses associated with foreign currency translation are recorded for the fiscal years ended June 30, 2020 or 2019. Comprehensive Income For the fiscal years ended June 30, 2020 and 2019, the Company’s operations did not give rise to material items includable in comprehensive income, which were not already included in net income. Accordingly, the Company’s comprehensive income approximates its net income for all periods presented. Segment Reporting The Company’s reportable operating segments are determined based on the Company’s management approach. The management approach is based on the way that the chief operating decision maker organizes the segments within an enterprise for making operating decisions and assessing performance. The Company’s results of operations are reviewed by the chief operating decision maker on a consolidated basis and the Company operates in only one segment. The Company has presented required geographical data in Note 12. Shipping and Handling Sales and Costs The Company records the amount billed to customers for shipping and handling in net sales ($452,000 and $430,000 in the fiscal years ended June 30, 2020 and 2019, respectively) and classifies the costs associated with these sales in cost of sales ($1,034,000 and $1,115,000 in the fiscal years ended June 30, 2020 and 2019, respectively). Leases Effective July 1, 2019, the Company adopted the new lease accounting standard using the modified retrospective transition option of applying the new standard at the adoption date. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to not reassess (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases, and (3) initial direct costs for any existing leases. Adoption of the new standard resulted in the recording of an operating ROU asset and lease liabilities of approximately $7.7 million. Given the length of the lease term, the right-of-use asset and corresponding liability assume a weighted discount rate as disclosed below. A change in the rate utilized could have a material effect on the amounts reported. Financial positions for reporting periods beginning on or after July 1, 2019 are presented under new guidance, while prior period amounts are not adjusted and continue to be reported in accordance with previous guidance. See Note 11 – Commitments and Contingencies; Leases for additional accounting policies and transition disclosures. Recently Issued and Adopted Accounting Standards On July 1, 2019, we adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02), as amended, which supersedes the lease accounting guidance under Topic 840, and generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. We adopted the new guidance using the modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application and not restating comparative periods. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases. For information regarding the impact of Topic 842 adoption, see Significant Accounting Policies - Leases and Note 11- Leases.

Revenue Recognition and Contrac

Revenue Recognition and Contracts with Customers	12 Months Ended
Revenue Recognition and Contracts with Customers	Jun. 30, 2020
Revenue Recognition and Contracts with Customers
Revenue Recognition and Contracts with Customers	NOTE 2 – Revenue Recognition and Contracts with Customers Adoption On July 1, 2018, the Company adopted new guidance on revenue from contracts with customers using the modified retrospective method applied to contracts that were not completed as of July 1, 2018. Results for reporting periods beginning after July 1, 2018 are presented under the new guidance, while prior period amounts are not adjusted and continue to be reported in accordance with previous guidance. The Company recorded a net decrease to opening retained earnings of approximately $719,000 (net of tax benefit of $191,000) as of July 1, 2018, for the cumulative impact of adopting the new guidance. The impact primarily related to the change in the recognition and measurement of certain types of variable consideration, which resulted in the increase in sales allowance reserves (i.e. refund liabilities) by a net of $1,627,000 and increased other assets (i.e. return related assets) by approximately $716,000. Net Sales The Company is engaged in one major line of business: the development, manufacture, and distribution of security products, encompassing access control systems, door security products, intrusion and fire alarm systems, alarm communication services, and video surveillance products for commercial and residential use. The Company also provides wireless communication service for intrusion and fire alarm systems on a monthly basis. These products are used for commercial, residential, institutional, industrial and governmental applications, and are sold worldwide principally to independent distributors, dealers and installers of security equipment. Sales to unaffiliated customers are primarily shipped from the United States. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. For product sales the Company typically transfers control at a point in time upon shipment or delivery of the product. For monthly communication services the Company satisfies its performance obligation as the services are rendered and therefore recognizes revenue over the monthly period. Typically timing of revenue recognition coincides with the timing of invoicing to the customers, at which time the Company has an unconditional right to consideration. As such, the Company typically records a receivable when revenue is recognized. The contract with the customer states the final terms of the sale, including the description, quantity, and price of each product purchased. Payment for product sales is typically due within 30 and 180 days of the delivery date. Payment for monthly communication services is billed on a monthly basis and is typically due at the beginning of the month of service. The Company provides limited standard warranty for defective products, usually for a period of 24 to 36 months. The Company accepts returns for such defective products as well as for other limited circumstances. The Company also provides rebates to customers for meeting specified purchasing targets and other coupons or credits in limited circumstances. The Company establishes reserves for the estimated returns, rebates and credits and measures such variable consideration based on the expected value method using an analysis of historical data. Changes to the estimated variable consideration in subsequent periods are not material. As of June 30, 2020 and 2019, the Company included refund liabilities of approximately $3,331,000 and $3,524,000, respectively, in current liabilities. As of June 30, 2020 and 2019, the Company included return-related assets of approximately $701,000 and $820,000, respectively, in other current assets. The Company analyzes sales returns and is able to make reasonable and reliable estimates of product returns based on the Company’s past history. Estimates for sales returns are based on several factors including actual returns and based on expected return data communicated to it by its customers. Accordingly, the Company believes that its historical returns analysis is an accurate basis for its allowance for sales returns. Actual results could differ from those estimates. As a percentage of gross sales, sales returns, rebates and allowances were 9% and 8% for the fiscal years ended June 30, 2020 and 2019, respectively. In accordance with ASC 606-10-50, the Company disaggregates revenue from contracts with customers into major product lines. The Company determines that disaggregating revenue into these categories achieves the disclosure objective to depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. As noted in the accounting policy footnote, the Company’s business consists of one operating segment. Following is the disaggregation of revenues based on major product lines (in thousands): Fiscal year ended June 30, 2020 2019 Major Product Lines: Intrusion and access alarm products $ 31,310 $ 31,557 Door locking devices 46,004 53,948 Services 24,045 17,427 Total Revenues $ 101,359 $ 102,932

Business and Credit Concentrati

Business and Credit Concentrations	12 Months Ended
Business and Credit Concentrations	Jun. 30, 2020
Business and Credit Concentrations
Business and Credit Concentrations	NOTE 3 - Business and Credit Concentrations An entity is more vulnerable to concentrations of credit risk if it is exposed to risk of loss greater than it would have had if it mitigated its risk through diversification of customers. Such risks of loss manifest themselves differently, depending on the nature of the concentration, and vary in significance. The Company had one customer with an accounts receivable balance that comprised 24% and 19% of the Company’s accounts receivable at June 30, 2020 and 2019, respectively. Sales to this customer did not exceed 10% of net sales during fiscal year ended June 30, 2020. Sales to this customer comprised 10% of net sales during fiscal year ended June 30, 2019. The Company had another customer with an accounts receivable balance that comprised 10% of the Company’s accounts receivable at June 30, 2020. Sales to this customer did not exceed 10% of net sales in either of the fiscal years ended June 30, 2020 and 2019. The Company had another customer with an accounts receivable balance that comprised 10% of the Company's accounts receivable at June 30, 2019. Sales to this customer did not exceed 10% of net sales in either of the fiscal years ended June 30, 2020 or 2019.

Inventories

Inventories	12 Months Ended
Inventories	Jun. 30, 2020
Inventories
Inventories	NOTE 4 - Inventories Inventories, net of reserves are valued at lower of cost (first-in, first-out method) or net realizable value. The Company regularly reviews parts and finished goods inventories on hand and, when necessary, records a provision for excess or obsolete inventories. The Company also regularly reviews the period over which its inventories will be converted to sales. Any inventories expected to convert to sales beyond 12 months from the balance sheet date are classified as non-current. Inventories, net of reserves consist of the following as of June 30, (in thousands): 2020 2019 Component parts $ 22,877 $ 21,543 Work-in-process 7,276 5,377 Finished product 11,602 7,918 $ 41,755 $ 34,838 Classification of inventories, net of reserves: Current $ 35,231 $ 29,576 Non-current 6,524 5,262 $ 41,755 $ 34,838

Property, Plant and Equipment

Property, Plant and Equipment	12 Months Ended
Property, Plant and Equipment	Jun. 30, 2020
Property, Plant and Equipment
Property, Plant and Equipment	NOTE 5 - Property, Plant, and Equipment Property, plant and equipment consist of the following (in thousands): June 30, 2020 2019 Useful Life in Years Land $ 904 $ 904 — Buildings 8,911 8,911 30 to 40 Molds and dies 7,337 7,333 3 to 5 Furniture and fixtures 2,792 2,691 5 to 10 Machinery and equipment 24,878 23,915 7 to 10 Building improvements 2,173 1,625 Shorter of the lease term or life of asset 46,995 45,379 Less: accumulated depreciation and amortization (38,907) (37,685) $ 8,088 $ 7,694 Depreciation and amortization expense on property, plant, and equipment was approximately $1,221,000 and $1,085,000 in fiscal 2020 and 2019, respectively.

Income Taxes

Income Taxes	12 Months Ended
Income Taxes	Jun. 30, 2020
Income Taxes
Income Taxes	NOTE 6 - The provision for income taxes is comprised of the following (in thousands): For the Years Ended June 30, 2020 2019 Current income taxes: Federal $ 1,715 $ 310 State 404 141 2,119 451 Deferred income tax provision 165 771 Provision for income taxes $ 2,284 $ 1,222 A reconciliation of the U.S. Federal statutory income tax rate to our actual effective tax rate on earnings before income taxes is as follows for the years ended June 30, (dollars in thousands): 2020 2019 % of % of Pre-tax Pre-tax Amount Income Amount Income Tax at Federal statutory rate $ 2,269 21.0 % $ 2,822 21.0 % Increases (decreases) in taxes resulting from: Meals and entertainment 44 0.4 % 49 0.3 % State income taxes, net of Federal income tax benefit 112 1.0 % 103 0.8 % Foreign source income not subject to tax (1,213) (11.2) % (1,219) (9.1) % R&D Credit (523) (4.8) % (408) (3.0) % Transition tax 0 0.0 % 0 0.0 % Foreign withholding tax 0 0.0 % 0 0.0 % Release of accrued tax reserves 0 0.0 % (151) (1.1) % Uncertain Tax Positions 775 7.1 % 0 0.0 % IRS examination settlements 832 7.7 % 12 0.1 % Other, net (12) (0.1) % 14 0.1 % Effective tax rate $ 2,284 21.1 % $ 1,222 9.1 % Deferred tax assets and deferred tax liabilities at June 30, 2020 and 2019 are as follows (in thousands): Deferred Tax Assets (Liabilities) 2020 2019 Accounts receivable $ 40 $ 17 Inventories 374 246 Accrued liabilities 262 250 Stock based compensation expense 96 36 Intangibles (300) (502) R&D credit 0 378 Property, plant and equipment (484) (407) Revenue reserves 308 319 Other deferred tax liabilities (408) (409) (112) (72) Valuation allowance — — Net deferred tax liabilities $ (112) $ (72) The Company has identified the United States and New York State as its major tax jurisdictions. Fiscal year 2017 is currently under audit by the Internal Revenue Service ("IRS"). Fiscal year 2018 and forward years are still open for examination. In addition, the Company has a wholly-owned subsidiary which operates in a Free Zone in the Dominican Republic (“DR”) and is exempt from DR income tax. The Company was audited by the IRS for the fiscal year 2016. In July 2019, the Company received Form 4549-A, Income Tax Examination Changes from the IRS proposing an adjustment to income for the fiscal 2016 tax year regarding deemed dividends based on its interpretation of Internal Revenue Code ("IRC") Section 956 arising from the intercompany balances on the books of the Company. In August 2019, the Company filed a formal protest with the IRS requesting an opportunity to appeal the examination findings to the Appeals Office. During fiscal year 2020, the Company settled the issue at Appeals. There is a provision recorded for the federal and state impact of $762,000 and $70,000, respectively. The Company is currently under audit for the fiscal year 2017. The IRS has raised the IRC Section 956 issue that was settled during the fiscal year 2016 audit. The Company strongly believes that the position of the IRS with regard to this matter is inconsistent with the provisions of IRC Section 956 and that the Company is willing to go to court, if necessary to argue its position. During fiscal year 2020, the Company’s Provision for income taxes included a provision for the incremental tax liability of $657,000 and interest of $66,000 was recorded for the 2017 and 2018 fiscal years. The provision for income taxes represents Federal, foreign, and state and local income taxes. The effective rate differs from statutory rates due to the effect of tax rates in foreign jurisdictions, state and local income taxes, tax benefit of R&D credits, certain nondeductible expenses, uncertain tax positions, audit settlements and global intangible low-taxed income ("GILTI"). On December 22, 2017, the U.S. government passed the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act is comprehensive tax legislation effective January 1, 2018 that implements complex changes to the U.S. tax code including, but not limited to, the reduction of the corporate tax rate from 35% to 21% and includes provisions to tax GILTI. We are subject to the GILTI provisions beginning with the fiscal year ended June 30, 2019. The Tax Act also imposed a one-time transition tax on its unremitted foreign earnings. ASC 740 requires filers to record the effects of tax law changes in the period enacted. However, the SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”), that permits filers to record provisional amounts during a measurement period ending no later than one year from the date of the Act’s enactment. As of March 31, 2019, the Company finalized its accounting for the income tax effects of the Tax Act and no additional expense was recorded since the final transition tax expense was equal to the $381,000 provisional expense reported in the fiscal year ended June 30, 2018. The net section 965 tax liability was $338,000, which is payable over 8 years. During the year ending June 30, 2020 the Company increased its reserve for uncertain income tax positions by $824,000. The Company’s practice is to recognize interest and penalties related to income tax matters in income tax expense and accrued income taxes. As of June 30, 2020, the Company had accrued interest totaling $83,000 and $866,000 of unrecognized net tax benefits that, if recognized, would favorably affect the Company’s effective income tax rate in any future period. The Company does not expect that its unrecognized tax benefits will significantly change within the next twelve months. The Company claims R&D tax credits on eligible research and development expenditures. The R&D tax credits are recognized as a reduction to income tax expense. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Tax Interest Total Balance of gross unrecognized tax benefits as of July 1, 2018 $ 221 $ — $ 221 Decrease to unrecognized tax benefits resulting from the release of R&D credits due to the IRS audit (151) (151) Increases to unrecognized tax benefits resulting from the generation of additional R&D credits 55 — 55 Balance of gross unrecognized tax benefits as of June 30, 2019 $ 125 $ — $ 125 Increase to unrecognized tax benefits resulting from deemed dividends for investments in US property 682 83 765 Increases to unrecognized tax benefits resulting from the generation of additional R&D credits 59 — 59 Balance of gross unrecognized tax benefits as of June 30, 2020 $ 866 $ 83 $ 949 The Company plans to permanently reinvest a substantial portion of its foreign earnings and as such has not provided withholding tax on the permanently reinvested earnings. The Company has accrued $408,000 for withholding taxes on undistributed earnings that are not permanently reinvested. As of June 30, 2020 the Company had approximately $42.5 million of undistributed earnings of foreign subsidiaries.

Long-Term Debt

Long-Term Debt	12 Months Ended
Long-Term Debt	Jun. 30, 2020
Long-Term Debt
Long-Term Debt	NOTE 7 - Long-Term Debt As of June 30, 2020, long-term debt consisted of a revolving line of credit of $11,000,000 (“Agreement”) which expires in June 2021 and term loans from the U.S. Small Business Administration totaling $3,904,000 through its Payroll Protection Program. Outstanding balances and interest rates as of June 30, 2020 and June 30, 2019 are as follows (dollars in thousands): June 30, 2020 June 30, 2019 Outstanding Interest Rate Outstanding Interest Rate Revolving line of credit $ — n/a $ — n/a Term loans 3,904 1 % — n/a $ 3,904 $ — Less: current maturities (1,794) — Long-term debt $ 2,110 $ — The Agreement also provides for a LIBOR-based interest rate option of LIBOR plus 1.15% to 2.00%, depending on the ratio of outstanding debt to EBITDA, which is to be measured and adjusted quarterly, a prime rate-based option of the prime rate plus 0.25% and other terms and conditions as more fully described in the Agreement. In addition, the Agreement provides for availability to be limited to the lesser of $11,000,000 or the result of a borrowing base formula based upon the Company’s Accounts Receivables and Inventory values net of certain deductions. The Company’s obligations under the Agreement continue to be secured by all of its assets, including but not limited to, deposit accounts, accounts receivable, inventory, and the Company’s corporate headquarters in Amityville, NY, equipment and fixtures and intangible assets. In addition, the Company’s wholly-owned subsidiaries, with the exception of the Company’s foreign subsidiaries, have issued guarantees and pledges of all of their assets to secure the Company’s obligations under the Agreement. All of the outstanding common stock of the Company’s domestic subsidiaries and 65% of the common stock of the Company’s foreign subsidiaries has been pledged to secure the Company’s obligations under the Agreement. The Agreement contains various restrictions and covenants including, among others, restrictions on payment of dividends, restrictions on borrowings and compliance with certain financial ratios, as defined in the Agreement. During the fourth quarter of fiscal 2020, the Company received the proceeds of promissory notes dated between April 17, 2020 and May 7, 2020 (the "PPP Loan Agreement"), entered into between the Company and HSBC Bank USA N.A., as lender (the "Lender). Lender made the loans pursuant to the Paycheck Protection Program (the "PPP"), created by Section 1102 of the CARES Act and governed by the CARES Act, Section 7(a)(36) of the Small Business Act, any rules or guidance that has been issued by the SBA implementing the PPP and acting as guarantor, or any other applicable loan program requirements, as defined in 13 CFR § 120.10, as amended from time to time. Pursuant to the PPP Loan Agreement, the Lender made loans to the Company with an aggregate principal amount of $3,904,000 (the "PPP Loan"). The maturity dates of the PPP Loan are between April 17, 2022 and May 7, 2022, which is two years from the PPP Loan Agreement date. The interest accrues from the date of disbursement of the PPP Loan (the "Effective Date"). The PPP Loan bears interest at a fixed rate equal to one percent (1)% per annum and interest will accrue from the Effective Date. PPP Loan payments are deferred for the first six months from the Effective Date. Subject to any PPP Loan forgiveness granted by the CARES Act, the Company will subsequently pay 18 fully amortized monthly consecutive principal and interest payments for all principal and all accrued interest not yet paid, with the first PPP Loan payment due on the date that is seven months after the Effective Date. The proceeds of the PPP Loan shall be used for the following purposes only: (i) payroll costs as defined by the CARES Act, (ii) costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave, and insurance premiums; (iii) mortgage interest payments, (iv) rent payments, (v) utility payments, (vi) interest payments on any other debt obligations incurred before February 15, 2020, and/or (vii) refinancing a SBA Economic Injury Disaster Loan made between January 31, 2020 and April 3, 2020. The PPP Loan and the related documentation contain customary events of default, including: (i) any representation or warranty made, or financial or other information provided, by the Company under the PPP Loan Agreement being false or misleading in any material respect; (ii) the failure by the Company to make required payments; (iii) the failure by the Company to perform or comply with certain agreements; and (iv) the dissolution or termination of the Company existence as a going business, the insolvency of the Company, the appointment of a receiver for any part of the Company property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against the Company. Upon default, Lender may declare the entire unpaid principal balance under this Note and all accrued unpaid interest immediately due, and then the Company will pay that amount. Lender may hire or pay someone else to help collect this Note if the Company does not pay. The Company will pay Lender that amount. This includes, subject to any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit, including attorneys' fees, expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), and appeals. The Company also will pay any court costs, in addition to all other sums provided by law. Should the Company default on the PPP Loan, SBA may be required to pay Lender under the SBA guarantee. SBA may then seek recovery of these funds from the Company and the Company may not claim or assert against SBA any immunities or defenses available under local law to defeat, modify or otherwise limit the Company's obligation to repay to SBA any funds advanced by Lender to the Company. If the Company defaults on the SBA-guaranteed loan and SBA suffers a loss, the names of the small business will be referred for listing in the Credit Alert Verification Reporting System (CAIVRS) database, which may affect their edibility for further assistance. Pursuant to the CARES Act, the loan may be forgiven by the SBA. The Company anticipates applying for forgiveness of these loans during fiscal 2021. The amount of loan forgiveness is determined by and is subject to the sole approval of the SBA. The amount of loan forgiveness may be reduced if loan proceeds are spent inappropriately. To receive loan forgiveness, the Company must apply for loan forgiveness and provide documentation as requested by the SBA. There will be no loan forgiveness without the Company’s submission of the proper application and documentation to Lender to include all SBA requirements. Not more than 25% of the amount forgiven can be attributable to non-payroll costs. No assurance can be provided that the Company will obtain forgiveness of the PPP Loan in whole or in part. The Company is accounting for the PPP Loan as debt in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 470, Debt and accrue interest in accordance with the interest method under FASB ASC 835-30. The Company will not impute additional interest at a market rate (even though the stated interest rate may be below market) as transactions where interest rates are prescribed by governmental agencies are excluded from the scope of the FASB ASC 835-30 guidance on imputing interest. For purposes of de-recognition or forgiveness of the liability, FASB ASC 470-50-15-4 refers to guidance in FASB ASC 405-20. Based on the guidance in FASB ASC 405-20-40-1, the proceeds from the loan would remain recorded as a liability until either (1) the loan is, in part or wholly, forgiven and the debtor has been “legally released” or (2) the debtor pays off the loan to the creditor. Once the loan is, in part or wholly, forgiven and legal release is received, the Company will reduce the liability by the amount forgiven and record a gain on extinguishment .

Stock Options

Stock Options	12 Months Ended
Stock Options	Jun. 30, 2020
Stock Options
Stock Options	NOTE 8 - The Company follows ASC 718 (“Share-Based Payment”), which requires that all share based payments to employees, including stock options, be recognized as compensation expense in the consolidated financial statements based on their fair values and over the requisite service period. For the fiscal years ended June 30, 2020 and 2019, the Company recorded non-cash compensation expense of $583,000 ($0.03 per basic and diluted share) and $160,000 ($0.01 per basic and diluted share), respectively, relating to stock-based compensation 2012 Employee Stock Option Plan In December 2012, the stockholders approved the 2012 Employee Stock Option Plan (the 2012 Employee Plan). The 2012 Employee Plan authorizes the granting of awards, the exercise of which would allow up to an aggregate of 950,000 shares of the Company’s common stock to be acquired by the holders of such awards. Under this plan, the Company may grant stock options, which are intended to qualify as incentive stock options (ISOs), to valued employees. Any plan participant who is granted ISOs and possesses more than 10% of the voting rights of the Company’s outstanding common stock must be granted an option with a price of at least 110% of the fair market value on the date of grant. Under the 2012 Employee Plan, stock options may be granted to valued employees with a term of up to 10 years at an exercise price equal to or greater than the fair market value on the date of grant and are exercisable, in whole or in part, at 20% per year beginning on the date of grant. An option granted under this plan shall vest in full upon a “change in control” as defined in the plan. At June 30, 2020, 117,840 stock options were outstanding, 35,000 stock options were exercisable and 731,960 stock options were available for grant under this plan. The fair value of each option granted during fiscal 2020 and 2019 was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: 2020 2019 Risk-free interest rates 0.6% - 2.1 % 2.5% - 3.1 % Expected lives 10 years 10 years Expected volatility 44% - 46 % 48% - 52 % Expected dividend yields 0 % 0 % The Company uses a weighted-average expected stock-price volatility assumption that is a combination of both current and historical implied volatilities of the underlying stock. The implied volatilities were obtained from publicly available data sources. For the weighted-average expected option life assumption, the Company considers the exercise behavior of past grants. The average risk-free interest rate is based on the U.S. Treasury Bond rate for the expected term of the options and the average dividend yield is based on historical experience. The following table reflects activity under the 2012 Plan for the fiscal years ended June 30,: 2020 2019 Weighted Weighted average average exercise exercise Options price Options price Outstanding, beginning of year 72,500 $ 11.01 57,200 $ 7.09 Granted 70,940 24.50 29,000 16.59 Terminated (10,000) 19.84 0 0 Exercised (15,600) 7.55 (13,700) 6.42 Outstanding, end of year 117,840 $ 18.84 72,500 $ 11.01 Exercisable, end of year 35,000 $ 13.13 33,800 $ 8.05 Weighted average fair value at grant date of options granted $ 13.43 $ 9.15 Total intrinsic value of options exercised $ 278,000 $ 160,000 Total intrinsic value of options outstanding $ 696,000 $ 1,353,000 Total intrinsic value of options exercisable $ 389,000 $ 731,000 The following table summarizes information about stock options outstanding under the 2012 Employee Plan at June 30, 2020: Options outstanding Options exercisable Weighted average Weighted Weighted Range of Number remaining average exercise Number average exercise exercise prices outstanding contractual life price exercisable price $4.37‑$33.59 117,840 $ 18.84 35,000 $ 6.50 117,840 $ 18.84 35,000 $ 6.50 As of June 30, 2020, there was $849,000 of unearned stock-based compensation cost related to share-based compensation arrangements granted under the 2012 Employee Plan. 70,940 and 29,000 options were granted during the fiscal years ended June 30, 2020 and 2019, respectively. 3,600 of the 15,600 stock options exercised during the fiscal year ended June 30, 2020 were settled by exchanging 1,628 shares of the Company's common stock which were retired and returned to unissued status upon receipt. 8,200 of the 13,700 stock options exercised during the fiscal year ended June 30, 2019 were settled by exchanging 3,106 shares of the Company’s common stock which were retired and returned to unissued status upon receipt. The total grant date fair value of the options vesting during the fiscal years ended June 30, 2020 and 2019 under this plan was $197,000 and $95,000, respectively. $79,000 and $31,000 was received from option exercises for the fiscal years ended June 30, 2020 and 2019, respectively, and the actual tax benefit realized for the tax deductions from option exercises was $0 for each of these periods. 2012 Non-Employee Stock Option Plan In December 2012, the stockholders approved the 2012 Non-Employee Stock Option Plan (the 2012 Non-Employee Plan). This plan authorizes the granting of awards, the exercise of which would allow up to an aggregate of 50,000 shares of the Company’s common stock to be acquired by the holders of such awards. Under this plan, the Company may grant stock options to non-employee directors and consultants to the Company and its subsidiaries. Under the 2012 Non-Employee Plan, stock options may be granted with a term of up to 10 years at an exercise price equal to or greater than the fair market value on the date of grant and are exercisable in whole or in part at 20% per year beginning on the date of grant. An option granted under this plan shall vest in full upon a “change in control” as defined in the plan. At June 30, 2020, 12,000 stock options were outstanding, 5,760 stock options were exercisable and no further stock options were available for grant under this plan. The fair value of each option granted during fiscal 2020 was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: 2020 Risk-free interest rates 1.6 % Expected lives 10 years Expected volatility 44 % Expected dividend yields 0 % The following table reflects activity under the 2012 Non-Employee Plan for the fiscal years ended June 30,: 2020 2019 Weighted Weighted average average exercise exercise Options price Options price Outstanding, beginning of year 10,200 $ 7.99 27,800 $ 6.85 Granted 1,800 23.35 — — Terminated — — (1,800) 8.70 Exercised — — (15,800) 5.91 Outstanding, end of year 12,000 $ 10.29 10,200 $ 7.99 Exercisable, end of year 5,760 $ 8.35 3,000 $ 6.27 Weighted average fair value at grant date of options granted $ 12.94 n/a Total intrinsic value of options exercised n/a $ 192,000 Total intrinsic value of options outstanding $ 157,000 $ 221,000 Total intrinsic value of options exercisable $ 87,000 $ 70,000 The following table summarizes information about stock options outstanding under the 2012 Non-Employee Plan at June 30, 2020: Options outstanding Options exercisable Weighted average Weighted Weighted Range of Number remaining average exercise Number average exercise exercise prices outstanding contractual life price exercisable price $4.37 - $23.35 12,000 $ 10.29 5,760 $ 8.35 12,000 $ 10.29 5,760 $ 8.35 As of June 30, 2020, there was $46,000 of unearned stock-based compensation cost related to share-based compensation arrangements granted under the 2012 Non-Employee Plan. 1,800 and 0 options were granted during the fiscal years ended June 30, 2020 and 2019, respectively. 14,600 of the 15,800 stock options exercised during the fiscal year ended June 30, 2019 were settled by exchanging 4,832 shares of the Company's common stock which were retired and returned to unissued status upon receipt. The total grant date fair value of the options vesting during each of the fiscal years ended June 30, 2020 and 2019 under this plan was $18,000 and $22,000, respectively. 2018 Non-Employee Stock Option Plan In December 2018, the stockholders approved the 2018 Non-Employee Stock Option Plan (the “2018 Non-Employee Plan”). This plan authorizes the granting of awards, the exercise of which would allow up to an aggregate of 50,000 shares of the Company's common stock to be acquired by the holders of such awards. Under this plan, the Company may grant stock options to non-employee directors and consultants to the Company and its subsidiaries. Under the 2018 Non-Employee Plan, stock options may be granted with a term of up to 10 years at an exercise price equal to or greater than the fair market value on the date of grant and are exercisable in whole or in part at 20% per year beginning on the date of grant. An option granted under this plan shall vest in full upon a “change in control” as defined in the plan. At June 30, 2020, 48,400 stock options were outstanding, 12,240 stock options were exercisable and 0 stock options were available for grant under this plan. The fair value of each option granted during the fiscal year ended June 30, 2020 was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: 2020 2019 Risk-free interest rates 1.6% - 1.8 % 2.9 % Expected lives 10 years 10 years Expected volatility 44% - 45 % 50 % Expected dividend yields 0 % 0 % The following table reflects activity under the 2018 Non-Employee plan for the fiscal year ended June 30,: 2020 2019 Weighted average exercise Weighted average exercise Options price Options price Outstanding, beginning of year 15,200 $ 16.20 — $ — Granted 33,200 26.82 20,000 16.20 Terminated — — (3,200) 16.20 Exercised — — (1,600) 16.20 Outstanding, end of year 48,400 $ 23.48 15,200 $ 16.20 Exercisable, end of year 12,240 $ 21.96 2,400 $ 16.20 Weighted average fair value at grant date of options granted $ 15.09 $ 10.24 Total intrinsic value of options exercised n/a $ 24,000 Total intrinsic value of options outstanding $ 110,000 $ 205,000 Total intrinsic value of options exercisable $ 40,000 $ 32,000 The following table summarizes information about stock options outstanding under the 2018 Non- Employee Plan at June 30, 2020: Options outstanding Options exercisable Weighted average Weighted Weighted Range of Number remaining average exercise Number average exercise exercise prices outstanding contractual life price exercisable price $16.20-$30.54 48,400 9.2 $ 23.48 12,240 $ 21.96 48,400 9.2 $ 23.48 12,240 $ 21.96 As of June 30, 2020, there was $410,000 of unearned stock-based compensation cost related to share-based compensation arrangements granted under the 2018 Non-Employee Plan. 33,200 and 20,000 options were granted during the fiscal years ended June 30, 2020 and 2019, respectively. 800 of the 1,600 stock options exercised during the fiscal year ended June 30, 2019 were settled by exchanging 395 shares of the Company’s common stock which were retired and returned to unissued status upon receipt and the actual tax benefit realized for the tax deductions from option exercises was $0 for each of these periods. The total grant date fair value of the options vesting during the fiscal year ended June 30, 2020 and 2019 under this plan was $133,000 and $41,000, respectively. 2020 Non-Employee Stock Option Plan In May 2020, the stockholders approved the 2020 Non-Employee Stock Option Plan (the “2020 Non-Employee Plan”). This plan authorizes the granting of awards, the exercise of which would allow up to an aggregate of 50,000 shares of the Company's common stock to be acquired by the holders of such awards. Under this plan, the Company may grant stock options to non-employee directors and consultants to the Company and its subsidiaries. Under the 2020 Non-Employee Plan, stock options may be granted with a term of up to 10 years at an exercise price equal to or greater than the fair market value on the date of grant and are exercisable in whole or in part at 20% per year beginning on the date of grant. An option granted under this plan shall vest in full upon a “change in control” as defined in the plan. At June 30, 2020, 0 stock options were outstanding, 0 stock options were exercisable and 50,000 stock options were available for grant under this plan.

Stockholders' Equity Transactio

Stockholders' Equity Transactions	12 Months Ended
Stockholders' Equity Transactions	Jun. 30, 2020
Stockholders' Equity Transactions
Stockholders' Equity Transactions	NOTE 9 – Stockholders’ Equity Transactions On September 16, 2014 the Company’s board of directors authorized the repurchase of up to 1 million of the approximately 19.4 million shares of the Company’s common stock then outstanding. Such repurchases may be made from time to time in the open market or in privately negotiated transactions subject to market conditions and the market price of the common stock. Relative to the loan agreement described in Note 6, the Company’s lender gave its consent to this stock repurchase plan. During the fiscal year ended June 30, 2020 the Company repurchased 144,405 shares of its outstanding common stock at a weighted average price of $16.99. Shares repurchased through June 30, 2020 are included in the Company’s Treasury Stock as of June 30, 2020. Pursuant to the PPP Loan Agreement described in Note 7, the Company may not repurchase any of its shares of common stock until 12 months after the termination of the term loans described therein. During fiscal 2020, certain employees and Directors exercised stock options under the Company's 2012 Employee and Non-Employee Stock Option Plans totaling 15,600 shares. 3,600 of these exercises were completed as cashless exercises as allowed for under the Plans, where the exercise shares are issued by the Company in exchange for shares of the Company's common stock that are owned by the optionees. The number of shares surrendered by the optionees was 1,628 and was based upon the per share price on the effective date of the option exercise. During fiscal 2019, certain employees and Directors exercised stock options under the Company’s 2012 Employee and Non-Employee Stock Option Plans and the Company’s 2002 Employee Stock Option Plan totaling 31,100 shares. 23,600 of these exercises were completed as cashless exercises as allowed for under the Plans, where the exercise shares are issued by the Company in exchange for shares of the Company’s common stock that are owned by the optionees. The number of shares surrendered by the optionees was 8,333 and was based upon the per share price on the effective date of the option exercise.

401(k) Plan

401(k) Plan	12 Months Ended
401(k) Plan	Jun. 30, 2020
401(k) Plan
401(k) Plan	NOTE 10 - 401(k) Plan The Company maintains a 401(k) plan (“the Plan”) that covers all U.S. non-union employees with one or more years of service and is qualified under Sections 401(a) and 401(k) of the Internal Revenue Code. Company contributions to this plan are discretionary and totaled $133,000 for the years ended June 30, 2020 and 2019.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Jun. 30, 2020
Commitments and Contingencies
Commitments and Contingencies	NOTE 11 - Commitments and Contingencies Leases Effective July 1, 2019, the Company adopted the new lease accounting standard using the modified retrospective transition option of applying the new standard at the adoption date. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to not reassess (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases, and (3) initial direct costs for any existing leases. Adoption of the new standard resulted in the recording of an operating ROU asset and lease liabilities of approximately $7.7 million. Given the length of the lease term, the right-of-use asset and corresponding liability assume a weighted discount rate as disclosed below. A change in the rate utilized could have a material effect on the amounts reported. Financial positions for reporting periods beginning on or after July 1, 2019 are presented under new guidance, while prior period amounts are not adjusted and continue to be reported in accordance with previous guidance. Our lease obligation consists of a 99 year lease which commenced on April 26, 1993 with one of the Company’s foreign subsidiaries, expiring in 2092, for approximately four acres of land in the Dominican Republic at an annual cost of $288,000, on which the Company’s principal production facility is located. Operating leases are included in operating lease right-of-use assets, accrued expenses and operating lease liabilities, non-current on our condensed consolidated balance sheets For the fiscal year ended June 30, 2020, cash payments against operating lease liabilities totaled $240. Supplemental balance sheet information related to operating leases was as follows: Weighted-average remaining lease term 72 years Weighted-average discount rate 3.55 % The following is a schedule, by years, of maturities of lease liabilities as of June 30, 2020 (in thousands): Year Ending June 30, Amount 2021 $ 282 2022 272 2023 263 2024 254 2025 245 Thereafter 6,079 Total $ 7,395 As previously disclosed in our 2019 Annual Report on Form 10-K and under the previous lease accounting standard, undiscounted future minimum lease payments for operating leases having initial or remaining non-cancellable lease terms in excess of one year are as follows (in thousands): Year Ending June 30, Amount 2020 $ 315 2021 314 2022 311 2023 297 2024 288 Thereafter 19,536 Total $ 21,061 Operating lease expense totaled approximately $315,000 and $330,000, for the fiscal years ended June 30, 2020 and 2019, respectively. Litigation In the normal course of business, the Company is a party to claims and/or litigation. Management believes that the settlement of such claims and/or litigation, considered in the aggregate, will not have a material adverse effect on the Company’s financial position and results of operations. Employment Agreements As of June 30, 2020, the Company was obligated under two employment agreements and one severance agreement. The employment agreements are with the Company’s CEO and the Senior Vice President of Engineering (“the SVP of Engineering”). The employment agreement with the CEO provides for an annual salary of $752,000, as adjusted for inflation; incentive compensation as may be approved by the Board of Directors from time to time and a termination payment in an amount up to 299% of the average of the prior five calendar year’s compensation, subject to certain limitations, as defined in the agreement. The employment agreement renews annually in August unless either party gives the other notice of non-renewal at least six months prior to the end of the applicable term. The employment agreement with the SVP of Engineering expires in August 2022 and provides for an annual salary of $333,799, and, if terminated by the Company without cause, severance of nine month’s salary and continued company-sponsored health insurance for six months from the date of termination. The severance agreement is with the Senior Vice President of Operations and Finance and provides for, if terminated by the Company without cause or within three months of a change in corporate control of the Company, severance of nine month’s salary, continued company-sponsored health insurance for six months from the date of termination and certain non-compete and other restrictive provisions.

Geographical Data

Geographical Data	12 Months Ended
Geographical Data	Jun. 30, 2020
Geographical Data
Geographical Data	NOTE 12 - Geographical Data The Company is engaged in one major line of business: the development, manufacture, and distribution of security products, encompassing access control systems, door-locking products, intrusion and fire alarm systems and video surveillance products for commercial and residential use. The Company also provides wireless communication service for intrusion and fire alarm systems. These products are used for commercial, residential, institutional, industrial and governmental applications, and are sold worldwide principally to independent distributors, dealers and installers of security equipment. Sales to unaffiliated customers are primarily shipped from the United States. The Company has customers worldwide with major concentrations in North America. Financial Information Relating to Domestic and Foreign Operations Fiscal Year ended June 30, 2020 2019 (in thousands) Sales to external customers(1): Domestic $ 99,496 $ 100,716 Foreign 1,863 2,216 Total Net Sales $ 101,359 $ 102,932 As of June 30, 2020 2019 Identifiable assets: United States $ 69,436 $ 59,683 Dominican Republic (2) 36,402 26,225 Total Identifiable Assets $ 105,838 $ 85,908 (1) All of the Company’s sales originate in the United States and are shipped primarily from the Company’s facilities in the United States. There were no sales into any one foreign country in excess of 10% of total Net Sales. (2) Consists primarily of inventories (2020 = $25,246; 2019 = $22,549). operating lease assets (2020 = $7,395; 2019 = $0) and fixed assets (2020 = $3,481; 2019 = $3,443) located at the Company’s principal manufacturing facility in the Dominican Republic.

Subsequent Events

Subsequent Events	12 Months Ended
Subsequent Events	Jun. 30, 2020
Subsequent Events
Subsequent Events	NOTE 13 – Subsequent Events The Company has evaluated subsequent events occurring after the date of the consolidated financial statements for events requiring recording or disclosure in the consolidated financial statements.

Nature of Business and Summar_2

Nature of Business and Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Jun. 30, 2020
Nature of Business and Summary of Significant Accounting Policies
Nature of Business	Nature of Business : Napco Security Technologies, Inc (“NAPCO”, “the Company”, “we”) is one of the leading manufacturers and designers of high-tech electronic security devices, as well as a leading provider of school safety solutions. We offer a diversified array of security products, encompassing access control systems, door-locking products, intrusion and fire alarm systems and video surveillance products. These products are used for commercial, residential, institutional, industrial and governmental applications, and are sold worldwide principally to independent distributors, dealers and installers of security equipment. We have experienced significant growth in recent years, primarily driven by fast growing recurring service revenues generated from wireless communication services for intrusion and fire alarm systems, as well as our school security products that are designed to meet the increasing needs to enhance school security as a result of on-campus shooting and violence in the U.S. The Company’s fiscal year begins on July 1 and ends on June 30. Historically, the end users of the Company’s products want to install its products prior to the summer; therefore sales of its products historically peak in the period April 1 through June 30, the Company’s fiscal fourth quarter, and are reduced in the period July 1 through September 30, the Company’s fiscal first quarter. In addition, demand for our products is affected by the housing and construction markets. Deterioration of the current economic conditions may also affect this trend. Our fourth quarter of fiscal 2020 reflects the challenging business environment resulting from the COVID-19 pandemic. The COVID-19 pandemic has caused difficulties for security equipment professionals getting access to both commercial and residential installation sites. The Company believes this access issue is an industry-wide issue related to COVID-19 and not reflective of the loss of any market share unique to the Company or any long-term negative reflection of the post-pandemic vibrancy of the security industry as a whole.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of Napco Security Technologies, Inc. and all of its wholly-owned subsidiaries. All inter-company balances and transactions have been eliminated in consolidation.
Accounting Estimates	Accounting Estimates The preparation of financial statements in conformity with Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent gains and losses at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Critical estimates include management’s judgments associated with reserves for sales returns and allowances, allowance for doubtful accounts, inventory reserves, valuation of intangible assets and income taxes. Actual results could differ from those estimates.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The methods and assumptions used to estimate the fair value of the following classes of financial instruments were: Current Assets and Current Liabilities - The carrying amount of cash and cash equivalents, certificates of deposits, current receivables and payables and certain other short-term financial instruments approximate their fair value as of June 30, 2020 and 2019 due to their short-term maturities. Long-term debt and lease liabilities reflect fair value based on prevailing market rates.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include approximately $460,000 of short-term time deposits at June 30, 2020 and 2019. The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company has cash balances in banks in excess of the maximum amount insured by the FDIC and other international agencies as of June 30, 2020 and 2019. The Company has not historically experienced any credit losses with balances in excess of FDIC limits.
Accounts Receivable	Accounts Receivable Accounts receivable is stated net of the reserves for doubtful accounts of $326,000 and $88,000 as of June 30, 2020 and 2019, respectively. Our reserves for doubtful accounts are subjective critical estimates that have a direct impact on reported net earnings. These reserves are based upon the evaluation of our accounts receivable aging, specific exposures, sales levels and historical trends.
Inventories	Inventories Inventories are valued at the lower of cost or net realizable value, with cost being determined on the first-in, first-out (FIFO) method. The reported net value of inventory includes finished saleable products, work-in-process and raw materials that will be sold or used in future periods. Inventory costs include raw materials, direct labor and overhead. The Company’s overhead expenses are applied based, in part, upon estimates of the proportion of those expenses that are related to procuring and storing raw materials as compared to the manufacture and assembly of finished products. These proportions, the method of their application, and the resulting overhead included in ending inventory, are based in part on subjective estimates and actual results could differ from those estimates. In addition, the Company records an inventory obsolescence reserve, which represents any excess of the cost of the inventory over its estimated realizable value, based on various product sales projections. This reserve is calculated using an estimated obsolescence percentage applied to the inventory based on age, historical trends, requirements to support forecasted sales, and the ability to find alternate applications of its raw materials and to convert finished product into alternate versions of the same product to better match customer demand. In addition, and as necessary, the Company may establish specific reserves for future known or anticipated events. There is inherent professional judgment and subjectivity made by both production and engineering members of management in determining the estimated obsolescence percentage. The Company also regularly reviews the period over which its inventories will be converted to sales. Any inventories expected to convert to sales beyond 12 months from the balance sheet date are classified as non-current.
Property, Plant, and Equipment	Property, Plant, and Equipment Property, plant, and equipment are carried at cost less accumulated depreciation. Expenditures for maintenance and repairs are charged to expense as incurred; costs of major renewals and improvements are capitalized. At the time property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are eliminated from the asset and accumulated depreciation accounts and the profit or loss on such disposition is reflected in income. Depreciation is recorded over the estimated service lives of the related assets using primarily the straight-line method. Amortization of leasehold improvements is calculated by using the straight-line method over the estimated useful life of the asset or lease term, whichever is shorter.
Intangible Assets	Intangible Assets Intangible assets determined to have indefinite lives are not amortized but are tested for impairment at least annually. Intangible assets with definite lives are amortized over their useful lives. Infinite-lived intangible assets are reviewed for impairment at least annually at the Company’s fiscal year end of June 30 or more often whenever there is an indication that the carrying amount may not be recovered. The Company’s acquisition of substantially all of the assets and certain liabilities of G. Marks Hardware, Inc. (“Marks”) in August 2008 included intangible assets recorded at fair value on the date of acquisition. The customer relationships are amortized over their estimated useful lives of twenty years. The Marks trade name was deemed to have an indefinite life. At the conclusion of fiscal 2020, the Company determined that the trade-name was impaired. Accordingly, the Company recorded an impairment charge of $1,852,000 and reclassified the remaining balance of the underlying asset from indefinite-lived to a long-lived asset with a remaining useful life of 20 years as of June 30, 2020. Changes in intangible assets are as follows (in thousands): June 30, 2020 June 30, 2019 Carrying Accumulated Net book Carrying Accumulated Net book value amortization value value amortization value Customer relationships $ 9,800 $ (8,732) $ 1,068 $ 9,800 $ (8,468) $ 1,332 Trade name 4,048 — 4,048 5,900 — 5,900 $ 13,848 $ (8,732) $ 5,116 $ 15,700 $ (8,468) $ 7,232 Amortization expense for intangible assets subject to amortization was approximately $264,000 and $313,000 for the fiscal years ended June 30, 2020 and 2019, respectively. Amortization expense for each of the next five fiscal years is estimated to be as follows: 2021 - $425,000; 2022 - $390,000; 2023 - $362,000; 2024 - $336,000; and 2025 - $315,000. The weighted average remaining amortization period for intangible assets was 17.5 years and 9.1 years at June 30, 2020 and 2019, respectively.
Long-Lived Assets	Long-Lived Assets Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets in question may not be recoverable. Impairment would be recorded in circumstances where undiscounted cash flows expected to be generated by an asset are less than the carrying value of that asset.
Leases	Leases Effective July 1, 2019, the Company adopted the new lease accounting standard using the modified retrospective transition option of applying the new standard at the adoption date. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to not reassess (1) whether any expired or existing contracts are or contain leases, (2) lease classification for any expired or existing leases, and (3) initial direct costs for any existing leases. Adoption of the new standard resulted in the recording of an operating ROU asset and lease liabilities of approximately $7.7 million. Given the length of the lease term, the right-of-use asset and corresponding liability assume a weighted discount rate as disclosed below. A change in the rate utilized could have a material effect on the amounts reported. Financial positions for reporting periods beginning on or after July 1, 2019 are presented under new guidance, while prior period amounts are not adjusted and continue to be reported in accordance with previous guidance. See Note 11 – Commitments and Contingencies; Leases for additional accounting policies and transition disclosures.
Revenue Recognition	Revenue Recognition The Company recognizes revenue in accordance with Accounting Standards Codification ("ASC"), Topic 606, Revenue from Contracts with Customers , which the Company adopted effective July 1, 2018. Accordingly, the Company recognizes revenue when its customers obtain control of its products or services, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods and services. See Note 2 - Revenue Recognition for additional accounting policies and transition disclosures.
Advertising and Promotional Costs	Advertising and Promotional Costs Advertising and promotional costs are included in "Selling, General and Administrative" expenses in the consolidated statements of income and are expensed as incurred. Advertising expense for fiscal years ended June 30, 2020 and 2019 was $1,722,000 and $2,047,000, respectively.
Research and Development Costs	Research and Development Costs Research and development costs incurred by the Company are charged to expense as incurred and are included in operating expenses in the consolidated statements of income. Company-sponsored research and development expense for the fiscal years ended June 30, 2020 and 2019 was $7,257,000 and $7,212,000, respectively.
Income Taxes	Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company measures and recognizes the tax implications of positions taken or expected to be taken in its tax returns on an ongoing basis.
Net Income per Share	Net Income per Share Basic net income per common share (Basic EPS) is computed by dividing net income by the weighted average number of common shares outstanding. Diluted net income per common share (Diluted EPS) is computed by dividing net income by the weighted average number of common shares and dilutive common share equivalents and convertible securities then outstanding. The following provides a reconciliation of information used in calculating the per share amounts for the fiscal years ended June 30 (in thousands, except per share data): Weighted Average Net Income per Net Income Shares Share 2020 2019 2020 2019 2020 2019 Basic EPS $ 8,520 $ 12,223 18,444 18,574 $ 0.46 $ 0.66 Effect of Dilutive Securities: Stock Options — — 49 50 — — Diluted EPS $ 8,520 $ 12,223 18,493 18,624 $ 0.46 $ 0.66 Options to purchase 38,819 and 2,957 shares of common stock were excluded for the fiscal years ended June 30, 2020 and 2019, respectively, and were not included in the computation of Diluted EPS because their inclusion would be anti-dilutive. These options were still outstanding at the end of the respective periods.
Stock-Based Compensation	Stock-Based Compensation The Company has established three share incentive programs as discussed in Note 8. Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense on a straight-line basis over the vesting period. Determining the fair value of share-based awards at the grant date requires assumptions and judgments about expected volatility and forfeiture rates, among other factors. Stock-based compensation costs of $583,000 and $160,000 were recognized for the fiscal years ended June 30, 2020 and 2019, respectively.
Foreign Currency	Foreign Currency The Company has determined the functional currency of all foreign subsidiaries is the U.S Dollar. All foreign operations are considered a direct and integral part or extension of the Company’s operations. The day-to-day operations of all foreign subsidiaries are dependent on the economic environment of the U.S Dollar. Therefore, no realized and unrealized gains and losses associated with foreign currency translation are recorded for the fiscal years ended June 30, 2020 or 2019.
Comprehensive Income	Comprehensive Income For the fiscal years ended June 30, 2020 and 2019, the Company’s operations did not give rise to material items includable in comprehensive income, which were not already included in net income. Accordingly, the Company’s comprehensive income approximates its net income for all periods presented.
Segment Reporting	Segment Reporting The Company’s reportable operating segments are determined based on the Company’s management approach. The management approach is based on the way that the chief operating decision maker organizes the segments within an enterprise for making operating decisions and assessing performance. The Company’s results of operations are reviewed by the chief operating decision maker on a consolidated basis and the Company operates in only one segment. The Company has presented required geographical data in Note 12.
Shipping and Handling Sales and Costs	Shipping and Handling Sales and Costs The Company records the amount billed to customers for shipping and handling in net sales ($452,000 and $430,000 in the fiscal years ended June 30, 2020 and 2019, respectively) and classifies the costs associated with these sales in cost of sales ($1,034,000 and $1,115,000 in the fiscal years ended June 30, 2020 and 2019, respectively).
Recently Issued and Adopted Accounting Standards	Recently Issued and Adopted Accounting Standards On July 1, 2019, we adopted Accounting Standards Update No. 2016-02, Leases (Topic 842) (ASU 2016-02), as amended, which supersedes the lease accounting guidance under Topic 840, and generally requires lessees to recognize operating and financing lease liabilities and corresponding right-of-use assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. We adopted the new guidance using the modified retrospective transition approach by applying the new standard to all leases existing at the date of initial application and not restating comparative periods. The most significant impact was the recognition of ROU assets and lease liabilities for operating leases. For information regarding the impact of Topic 842 adoption, see Significant Accounting Policies - Leases and Note 11- Leases.

Nature of Business and Summar_3

Nature of Business and Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Jun. 30, 2020
Nature of Business and Summary of Significant Accounting Policies
Schedule of intangible assets	Changes in intangible assets are as follows (in thousands): June 30, 2020 June 30, 2019 Carrying Accumulated Net book Carrying Accumulated Net book value amortization value value amortization value Customer relationships $ 9,800 $ (8,732) $ 1,068 $ 9,800 $ (8,468) $ 1,332 Trade name 4,048 — 4,048 5,900 — 5,900 $ 13,848 $ (8,732) $ 5,116 $ 15,700 $ (8,468) $ 7,232
Schedule of earnings per share reconciliation	The following provides a reconciliation of information used in calculating the per share amounts for the fiscal years ended June 30 (in thousands, except per share data): Weighted Average Net Income per Net Income Shares Share 2020 2019 2020 2019 2020 2019 Basic EPS $ 8,520 $ 12,223 18,444 18,574 $ 0.46 $ 0.66 Effect of Dilutive Securities: Stock Options — — 49 50 — — Diluted EPS $ 8,520 $ 12,223 18,493 18,624 $ 0.46 $ 0.66

Revenue Recognition and Contr_2

Revenue Recognition and Contracts with Customers (Tables)	12 Months Ended
Revenue Recognition and Contracts with Customers (Tables)	Jun. 30, 2020
Revenue Recognition and Contracts with Customers
Schedule of disaggregation of revenues	Following is the disaggregation of revenues based on major product lines (in thousands): Fiscal year ended June 30, 2020 2019 Major Product Lines: Intrusion and access alarm products $ 31,310 $ 31,557 Door locking devices 46,004 53,948 Services 24,045 17,427 Total Revenues $ 101,359 $ 102,932

Inventories (Tables)

Inventories (Tables)	12 Months Ended
Inventories (Tables)	Jun. 30, 2020
Inventories
Schedule of Inventories, net	Inventories, net of reserves consist of the following as of June 30, (in thousands): 2020 2019 Component parts $ 22,877 $ 21,543 Work-in-process 7,276 5,377 Finished product 11,602 7,918 $ 41,755 $ 34,838 Classification of inventories, net of reserves: Current $ 35,231 $ 29,576 Non-current 6,524 5,262 $ 41,755 $ 34,838

Property, Plant, and Equipment

Property, Plant, and Equipment (Tables)	12 Months Ended
Property, Plant, and Equipment (Tables)	Jun. 30, 2020
Property, Plant and Equipment
Schedule of property, plant and equipment	Property, plant and equipment consist of the following (in thousands): June 30, 2020 2019 Useful Life in Years Land $ 904 $ 904 — Buildings 8,911 8,911 30 to 40 Molds and dies 7,337 7,333 3 to 5 Furniture and fixtures 2,792 2,691 5 to 10 Machinery and equipment 24,878 23,915 7 to 10 Building improvements 2,173 1,625 Shorter of the lease term or life of asset 46,995 45,379 Less: accumulated depreciation and amortization (38,907) (37,685) $ 8,088 $ 7,694

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
Income Taxes (Tables)	Jun. 30, 2020
Income Taxes
Schedule of provision for income taxes	The provision for income taxes is comprised of the following (in thousands): For the Years Ended June 30, 2020 2019 Current income taxes: Federal $ 1,715 $ 310 State 404 141 2,119 451 Deferred income tax provision 165 771 Provision for income taxes $ 2,284 $ 1,222
Schedule of effective income tax rate reconciliation	A reconciliation of the U.S. Federal statutory income tax rate to our actual effective tax rate on earnings before income taxes is as follows for the years ended June 30, (dollars in thousands): 2020 2019 % of % of Pre-tax Pre-tax Amount Income Amount Income Tax at Federal statutory rate $ 2,269 21.0 % $ 2,822 21.0 % Increases (decreases) in taxes resulting from: Meals and entertainment 44 0.4 % 49 0.3 % State income taxes, net of Federal income tax benefit 112 1.0 % 103 0.8 % Foreign source income not subject to tax (1,213) (11.2) % (1,219) (9.1) % R&D Credit (523) (4.8) % (408) (3.0) % Transition tax 0 0.0 % 0 0.0 % Foreign withholding tax 0 0.0 % 0 0.0 % Release of accrued tax reserves 0 0.0 % (151) (1.1) % Uncertain Tax Positions 775 7.1 % 0 0.0 % IRS examination settlements 832 7.7 % 12 0.1 % Other, net (12) (0.1) % 14 0.1 % Effective tax rate $ 2,284 21.1 % $ 1,222 9.1 %
Schedule of deferred tax assets and liabilities	Deferred tax assets and deferred tax liabilities at June 30, 2020 and 2019 are as follows (in thousands): Deferred Tax Assets (Liabilities) 2020 2019 Accounts receivable $ 40 $ 17 Inventories 374 246 Accrued liabilities 262 250 Stock based compensation expense 96 36 Intangibles (300) (502) R&D credit 0 378 Property, plant and equipment (484) (407) Revenue reserves 308 319 Other deferred tax liabilities (408) (409) (112) (72) Valuation allowance — — Net deferred tax liabilities $ (112) $ (72)
Schedule of unrecognized tax benefits roll forward	A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Tax Interest Total Balance of gross unrecognized tax benefits as of July 1, 2018 $ 221 $ — $ 221 Decrease to unrecognized tax benefits resulting from the release of R&D credits due to the IRS audit (151) (151) Increases to unrecognized tax benefits resulting from the generation of additional R&D credits 55 — 55 Balance of gross unrecognized tax benefits as of June 30, 2019 $ 125 $ — $ 125 Increase to unrecognized tax benefits resulting from deemed dividends for investments in US property 682 83 765 Increases to unrecognized tax benefits resulting from the generation of additional R&D credits 59 — 59 Balance of gross unrecognized tax benefits as of June 30, 2020 $ 866 $ 83 $ 949

Long-Term Debt (Tables)

Long-Term Debt (Tables)	12 Months Ended
Long-Term Debt (Tables)	Jun. 30, 2020
Long-Term Debt
Schedule of debt instruments	Outstanding balances and interest rates as of June 30, 2020 and June 30, 2019 are as follows (dollars in thousands): June 30, 2020 June 30, 2019 Outstanding Interest Rate Outstanding Interest Rate Revolving line of credit $ — n/a $ — n/a Term loans 3,904 1 % — n/a $ 3,904 $ — Less: current maturities (1,794) — Long-term debt $ 2,110 $ —

Stock Options (Tables)

Stock Options (Tables)	12 Months Ended
Stock Options (Tables)	Jun. 30, 2020
2012 Employee Stock Option Plan [Member]
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	The fair value of each option granted during fiscal 2020 and 2019 was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: 2020 2019 Risk-free interest rates 0.6% - 2.1 % 2.5% - 3.1 % Expected lives 10 years 10 years Expected volatility 44% - 46 % 48% - 52 % Expected dividend yields 0 % 0 %
Schedule of Share-based Compensation, Stock Options, Activity	The following table reflects activity under the 2012 Plan for the fiscal years ended June 30,: 2020 2019 Weighted Weighted average average exercise exercise Options price Options price Outstanding, beginning of year 72,500 $ 11.01 57,200 $ 7.09 Granted 70,940 24.50 29,000 16.59 Terminated (10,000) 19.84 0 0 Exercised (15,600) 7.55 (13,700) 6.42 Outstanding, end of year 117,840 $ 18.84 72,500 $ 11.01 Exercisable, end of year 35,000 $ 13.13 33,800 $ 8.05 Weighted average fair value at grant date of options granted $ 13.43 $ 9.15 Total intrinsic value of options exercised $ 278,000 $ 160,000 Total intrinsic value of options outstanding $ 696,000 $ 1,353,000 Total intrinsic value of options exercisable $ 389,000 $ 731,000
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range	The following table summarizes information about stock options outstanding under the 2012 Employee Plan at June 30, 2020: Options outstanding Options exercisable Weighted average Weighted Weighted Range of Number remaining average exercise Number average exercise exercise prices outstanding contractual life price exercisable price $4.37‑$33.59 117,840 $ 18.84 35,000 $ 6.50 117,840 $ 18.84 35,000 $ 6.50
2012 Non-Employee Stock Option Plan [Member]
Schedule of Share-based Compensation, Stock Options, Activity	The following table reflects activity under the 2012 Non-Employee Plan for the fiscal years ended June 30,: 2020 2019 Weighted Weighted average average exercise exercise Options price Options price Outstanding, beginning of year 10,200 $ 7.99 27,800 $ 6.85 Granted 1,800 23.35 — — Terminated — — (1,800) 8.70 Exercised — — (15,800) 5.91 Outstanding, end of year 12,000 $ 10.29 10,200 $ 7.99 Exercisable, end of year 5,760 $ 8.35 3,000 $ 6.27 Weighted average fair value at grant date of options granted $ 12.94 n/a Total intrinsic value of options exercised n/a $ 192,000 Total intrinsic value of options outstanding $ 157,000 $ 221,000 Total intrinsic value of options exercisable $ 87,000 $ 70,000
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range	The following table summarizes information about stock options outstanding under the 2012 Non-Employee Plan at June 30, 2020: Options outstanding Options exercisable Weighted average Weighted Weighted Range of Number remaining average exercise Number average exercise exercise prices outstanding contractual life price exercisable price $4.37 - $23.35 12,000 $ 10.29 5,760 $ 8.35 12,000 $ 10.29 5,760 $ 8.35
Fair Value Measurement Inputs and Valuation Techniques	The fair value of each option granted during fiscal 2020 was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: 2020 Risk-free interest rates 1.6 % Expected lives 10 years Expected volatility 44 % Expected dividend yields 0 %
2018 Non-Employee Stock Option Plan
Schedule of Share-based Compensation, Stock Options, Activity	The following table reflects activity under the 2018 Non-Employee plan for the fiscal year ended June 30,: 2020 2019 Weighted average exercise Weighted average exercise Options price Options price Outstanding, beginning of year 15,200 $ 16.20 — $ — Granted 33,200 26.82 20,000 16.20 Terminated — — (3,200) 16.20 Exercised — — (1,600) 16.20 Outstanding, end of year 48,400 $ 23.48 15,200 $ 16.20 Exercisable, end of year 12,240 $ 21.96 2,400 $ 16.20 Weighted average fair value at grant date of options granted $ 15.09 $ 10.24 Total intrinsic value of options exercised n/a $ 24,000 Total intrinsic value of options outstanding $ 110,000 $ 205,000 Total intrinsic value of options exercisable $ 40,000 $ 32,000 The following table summarizes information about stock options outstanding under the 2018 Non- Employee Plan at June 30, 2020: Options outstanding Options exercisable Weighted average Weighted Weighted Range of Number remaining average exercise Number average exercise exercise prices outstanding contractual life price exercisable price $16.20-$30.54 48,400 9.2 $ 23.48 12,240 $ 21.96 48,400 9.2 $ 23.48 12,240 $ 21.96
Fair Value Measurement Inputs and Valuation Techniques	The fair value of each option granted during the fiscal year ended June 30, 2020 was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: 2020 2019 Risk-free interest rates 1.6% - 1.8 % 2.9 % Expected lives 10 years 10 years Expected volatility 44% - 45 % 50 % Expected dividend yields 0 % 0 %

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
Commitments and Contingencies (Tables)	Jun. 30, 2020
Commitments and Contingencies
Summary of cash payments against operating lease liabilities	Supplemental balance sheet information related to operating leases was as follows: Weighted-average remaining lease term 72 years Weighted-average discount rate 3.55 %
Schedule of maturities of lease liabilities	The following is a schedule, by years, of maturities of lease liabilities as of June 30, 2020 (in thousands): Year Ending June 30, Amount 2021 $ 282 2022 272 2023 263 2024 254 2025 245 Thereafter 6,079 Total $ 7,395
Summary of future minimum lease payments for operating leases	As previously disclosed in our 2019 Annual Report on Form 10-K and under the previous lease accounting standard, undiscounted future minimum lease payments for operating leases having initial or remaining non-cancellable lease terms in excess of one year are as follows (in thousands): Year Ending June 30, Amount 2020 $ 315 2021 314 2022 311 2023 297 2024 288 Thereafter 19,536 Total $ 21,061

Geographical Data (Tables)

Geographical Data (Tables)	12 Months Ended
Geographical Data (Tables)	Jun. 30, 2020
Geographical Data
Schedule Of Revenue From External Customers And Identifiable Assets By Geographical Areas	Fiscal Year ended June 30, 2020 2019 (in thousands) Sales to external customers(1): Domestic $ 99,496 $ 100,716 Foreign 1,863 2,216 Total Net Sales $ 101,359 $ 102,932 As of June 30, 2020 2019 Identifiable assets: United States $ 69,436 $ 59,683 Dominican Republic (2) 36,402 26,225 Total Identifiable Assets $ 105,838 $ 85,908

Nature of Business and Summar_4

Nature of Business and Summary of Significant Accounting Policies - Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019
Intangible Assets by Major Class [Line Items]
Finite-lived intangible assets, Carrying value	$ 13,848	$ 15,700
Finite-lived intangible assets, Accumulated amortization	(8,732)	(8,468)
Finite-lived intangible assets, Net book value	5,116	7,232
Trade name
Intangible Assets by Major Class [Line Items]
Finite-lived intangible assets, Carrying value	4,048	5,900
Finite-lived intangible assets, Accumulated amortization	0	0
Finite-lived intangible assets, Net book value	4,048	5,900
Customer relationships
Intangible Assets by Major Class [Line Items]
Finite-lived intangible assets, Carrying value	9,800	9,800
Finite-lived intangible assets, Accumulated amortization	(8,732)	(8,468)
Finite-lived intangible assets, Net book value	$ 1,068	$ 1,332

Nature of Business and Summar_5

Nature of Business and Summary of Significant Accounting Policies - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Nature of Business and Summary of Significant Accounting Policies
Basic EPS	$ 8,520	$ 12,223
Weighted Average Shares, Basic EPS	18,444,000	18,574,000
Stock Options	49,000	50,000
Diluted EPS	$ 8,520	$ 12,223
Weighted Average Shares, Diluted EPS	18,493,000	18,624,000
Net Income Per Share, Basic	$ 0.46	$ 0.66
Net Income Per Share, Diluted	$ 0.46	$ 0.66

Nature of Business and Summar_6

Nature of Business and Summary of Significant Accounting Policies - Additional Information (Details)	Jul. 01, 2019USD ($)	Jun. 30, 2020USD ($)segment$ / sharesshares	Jun. 30, 2019USD ($)$ / sharesshares
Significant Accounting Policies [Line Items]
Carrying amount of long-term debt, including current portion		$ 2,110,000
Short-term time deposits		460,000	$ 460,000
Intangible assets amortization expense		264,000	$ 313,000
Estimated amortization expense- 2021		425,000
Estimated amortization expense - 2022		390,000
Estimated amortization expense - 2023		362,000
Estimated amortization expense - 2024		336,000
Estimated amortization expense- 2025		$ 315,000
Remaining weighted average amortization period for acquired intangible assets		17 years 6 months	9 years 1 month 6 days
Research and development costs		$ 7,257,000	$ 7,212,000
Antidilutive options outstanding excluded from diluted EPS computations \| shares		38,819	2,957
Stock-based compensation costs		$ 583,000	$ 160,000
Foreign Currency Transaction Gain (Loss), before Tax		$ 0	$ 0
Stock-based compensation costs, effect on EPS \| $ / shares		$ 0.03	$ 0.01
Number of Operating Segments \| segment		1
Cost of Goods and Services Sold		$ 57,767,000	$ 59,042,000
Impairment of intangible asset		1,852,000	0
Operating Lease, Liability	$ 7,700,000
Operating Lease, Right-of-Use Asset	$ 7,700,000	7,395,000	0
Package of practical expedients	true
Selling, General and Administrative Expenses [Member]
Significant Accounting Policies [Line Items]
Advertising and promotion costs		1,722,000	2,047,000
Sales revenue, net [Member] \| Shipping and Handling [Member]
Significant Accounting Policies [Line Items]
Cost of Goods and Services Sold		1,034,000	1,115,000
Cost of sales [Member]
Significant Accounting Policies [Line Items]
Research and development costs		7,257,000	7,212,000
Cost of sales [Member] \| Shipping and Handling [Member]
Significant Accounting Policies [Line Items]
Cost of Goods and Services Sold		452,000	430,000
Allowance for doubtful accounts current
Significant Accounting Policies [Line Items]
Valuation allowances and reserves, balance		$ 326,000
Returns and other allowances
Significant Accounting Policies [Line Items]
Valuation allowances and reserves, balance			$ 88,000
Customer relationships
Significant Accounting Policies [Line Items]
Finite-Lived Intangible Asset, Useful Life		20 years
Trade name
Significant Accounting Policies [Line Items]
Finite-Lived Intangible Asset, Useful Life		20 years
Impairment of intangible asset		$ 1,852,000

Revenue Recognition and Contr_3

Revenue Recognition and Contracts with Customers (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Disaggregation of Revenue [Abstract]
Equipment revenues	$ 77,314	$ 85,505
Services	24,045	17,427
Total Revenues	101,359	102,932
Intrusion and Access alarm products
Disaggregation of Revenue [Abstract]
Equipment revenues	31,310	31,557
Door locking devices
Disaggregation of Revenue [Abstract]
Equipment revenues	$ 46,004	$ 53,948

Revenue Recognition and Contr_4

Revenue Recognition and Contracts with Customers - Additional Information (Details) - USD ($)	Jul. 01, 2018	Jun. 30, 2020	Jun. 30, 2019
Refund liabilities	$ 1,627,000
Return related assets	716,000
Net decrease to opening retained earnings		$ 79,444,000	$ 70,924,000
Tax benefit		2,284,000	1,222,000
Current Liabilities
Refund liabilities		3,331,000	3,524,000
Other Current Assets
Return related assets		$ 701,000	$ 820,000
Sales Revenue, Product Line
Concentration Risk, Percentage		9.00%	8.00%
Cumulative Effect, Period of Adoption, Adjustment
Net decrease to opening retained earnings	719,000
Tax benefit	$ 191,000

Business and Credit Concentra_2

Business and Credit Concentrations (Details)	12 Months Ended
Business and Credit Concentrations (Details)	Jun. 30, 2020	Jun. 30, 2019
Concentration Risk [Line Items]
Percentage Of Single Significant Customer Balance To Total Accounts Receivables	24.00%	19.00%
Percentage Of Another Significant Customer Balance To Total Accounts Receivable	10.00%	10.00%
Sales Revenue, Net \| Customer One
Concentration Risk [Line Items]
Concentration Risk, Percentage	10.00%	10.00%
Sales Revenue, Net \| Customer Two
Concentration Risk [Line Items]
Concentration Risk, Percentage	10.00%	10.00%
Sales Revenue, Net \| Customer Three
Concentration Risk [Line Items]
Concentration Risk, Percentage	10.00%	10.00%

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019
Inventories
Component parts	$ 22,877	$ 21,543
Work-in-process	7,276	5,377
Finished products	11,602	7,918
Total Inventory	41,755	34,838
Current	35,231	29,576
Non-current	6,524	5,262
Total Inventory	$ 41,755	$ 34,838

Property, Plant, and Equipmen_2

Property, Plant, and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 46,995	$ 45,379
Less: accumulated depreciation and amortization	(38,907)	(37,685)
Property, plant and equipment, net	8,088	7,694
Land [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 904	904
Property, plant and equipment, useful life	0 years
Buildings [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 8,911	8,911
Buildings [Member] \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	30 years
Buildings [Member] \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	40 years
Molds and dies [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 7,337	7,333
Molds and dies [Member] \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	3 years
Molds and dies [Member] \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	5 years
Furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 2,792	2,691
Furniture and fixtures [Member] \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	5 years
Furniture and fixtures [Member] \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	10 years
Machinery and equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 24,878	23,915
Machinery and equipment [Member] \| Minimum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	7 years
Machinery and equipment [Member] \| Maximum
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	10 years
Building Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 2,173	$ 1,625
Property, plant and equipment, useful life	Shorter of the lease term or life of asset

Property, Plant, and Equipmen_3

Property, Plant, and Equipment - Additional Information (Details) - USD ($)	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Property, Plant and Equipment
Depreciation and amortization	$ 1,221,000	$ 1,085,000

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($)	Dec. 22, 2017	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2018
Income Taxes [Line Items]
Taxes Payable		$ 338,000
Deferred Income Tax Liability Payable period		8 years
Unrecognized Tax Benefits, Interest on Income Taxes Accrued		$ 83,000
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	35.00%	21.00%	21.00%
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount				$ 381,000
Unrecognized Tax Benefits, Period Increase (Decrease)		$ 824,000
Unrecognized Tax Benefits that Would Impact Effective Tax Rate		866,000
Undistributed Earnings of Foreign Subsidiaries		42,500,000
Withholding taxes on undistributed earnings		408,000
Income Tax Expense (Benefit)		2,284,000	$ 1,222,000
Provision for tax, federal		1,715,000	310,000
Provision for tax, state		404,000	$ 141,000
Provision for incremental Income tax liability		657,000
Provision for income tax interest		66,000
IRS
Income Taxes [Line Items]
Provision for tax, federal		762,000
Provision for tax, state		$ 70,000

Income Taxes - Provision for In

Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Current income taxes:
Federal	$ 1,715	$ 310
State	404	141
Current Income Tax Expense (Benefit), Total	2,119	451
Deferred income tax provision	165	771
Provision for income taxes	$ 2,284	$ 1,222

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of Income Tax Rate (Details) - USD ($) $ in Thousands	Dec. 22, 2017	Jun. 30, 2020	Jun. 30, 2019
Income Taxes
Tax at Federal statutory rate		$ 2,269	$ 2,822
Increases (decreases) in taxes resulting from:
Meals and entertainment		44	49
State income taxes, net of Federal income tax benefit		112	103
Foreign source income not subject to tax		(1,213)	(1,219)
R&D Credit		(523)	(408)
Transition tax		0	0
Foreign withholding tax		0	0
Release of accrued tax reserves		0	(151)
U.S. Federal Tax rate reduction		775	0
IRS examination settlements		832	12
Other, net		(12)	14
Effective tax rate		$ 2,284	$ 1,222
Tax at Federal statutory rate	35.00%	21.00%	21.00%
Increases (decreases) in taxes resulting from:
Meals and entertainment		0.40%	0.30%
State income taxes, net of Federal income tax benefit		1.00%	0.80%
Foreign source income not subject to tax		(11.20%)	(9.10%)
R&D Credit		(4.80%)	(3.00%)
Transition tax		0.00%	0.00%
Foreign withholding tax		0.00%	0.00%
U.S. Federal Tax rate reduction		7.10%	0.00%
Release of accrued tax reserves		0.00%	(1.10%)
IRS examination settlements		7.70%	0.10%
Other, net		(0.10%)	0.10%
Effective tax rate		21.10%	9.10%

Income Taxes - Deferred Tax Ass

Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019
Income Taxes
Accounts receivable	$ 40	$ 17
Inventories	374	246
Accrued liabilities	262	250
Stock based compensation expense	96	36
Intangibles	(300)	(502)
R&D credit	0	378
Property, plant and equipment	(484)	(407)
Revenue reserves	308	319
Other deferred tax liabilities	(408)	(409)
Deferred Tax Liabilities, Gross	(112)	(72)
Valuation allowance	0	0
Deferred Income Tax Liabilities, Net	$ (112)	$ (72)

Income Taxes - Unrecognized Tax

Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Income Taxes
Beginning balance of gross unrecognized tax benefits, Tax	$ 125	$ 221
Increases to unrecognized tax benefits resulting from the generation of additional R&D credits, Tax	59	55
Decrease to Unrecognized Tax Benefits Resulting From The Release of R&D Credits Due To The IRS Audit Tax Component		(151)
Ending balance of gross unrecognized tax benefits, Tax	866	125
Beginning balance of gross unrecognized tax benefits, Interest	0	0
Increases to unrecognized tax benefits resulting from the generation of additional R&D credits, Interest	0	0
Decrease to Unrecognized Tax Benefits Resulting From The Release of R&D Credits Due To The IRS Audit Interest Component		0
Ending balance of gross unrecognized tax benefits, Interest	83	0
Beginning balance of gross unrecognized tax benefits	125	221
Increases to unrecognized tax benefits resulting from the generation of additional R&D credits	59	55
Decrease to Unrecognized Tax Benefits Resulting From The Release of R&D Credits Due To The IRS Audit Total Component		(151)
Increases to unrecognized tax benefits resulting from the generation of additional R&D credits Tax component	682
Increase to unrecognized tax benefits resulting from deemed dividends for investments in US property Interest	83
Increase to unrecognized tax benefits resulting from deemed dividends for investments in US property Total	765
Ending balance of gross unrecognized tax benefits	$ 949	$ 125

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019
Debt Instrument [Line Items]
Outstanding	$ 3,904
Less: current maturities	(1,794)	$ 0
Long-term debt	2,110
Term loans
Debt Instrument [Line Items]
Outstanding	$ 3,904
Interest rate	1.00%

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Details) - USD ($)	12 Months Ended
Long-Term Debt - Additional Information (Details) - USD ($)	Jun. 30, 2020	Jun. 30, 2019
Debt Instrument [Line Items]
Long-term Line of Credit	$ 3,904,000
Total long term debt	$ 2,110,000	$ 0
Term of loan (in years)	2 years
Revolving line of credit expiring June 2021
Debt Instrument [Line Items]
Revolving credit loan facility, maximum borrowing capacity	$ 11,000,000
Total long term debt	$ 11,000,000
Third Amended and Restated Credit Agreement
Debt Instrument [Line Items]
Percentage of common stock of foreign subsidiaries pledged as collateral	65.00%
Third Amended and Restated Credit Agreement \| Variable Interest Rate Option One \| Minimum
Debt Instrument [Line Items]
Interest rate over the reference rate	1.15%
Third Amended and Restated Credit Agreement \| Variable Interest Rate Option One \| Maximum
Debt Instrument [Line Items]
Interest rate over the reference rate	2.00%
Third Amended and Restated Credit Agreement \| Variable Interest Rate Option Two
Debt Instrument [Line Items]
Interest rate over the reference rate	0.25%
Paycheck Protection Program
Debt Instrument [Line Items]
Term loan	$ 3,904,000
Aggregate principal amount	$ 3,904,000

Stock Options - Weighted Averag

Stock Options - Weighted Average Assumptions of Black-Scholes Option Pricing Model to Estimate Fair Value of Options Granted (Details)	12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
2012 Employee Stock Option Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected lives		10 years	10 years
Expected dividend yields		0.00%	0.00%
2012 Employee Stock Option Plan [Member] \| Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-free interest rates		0.60%	2.50%
Expected volatility		44.00%	48.00%
2012 Employee Stock Option Plan [Member] \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-free interest rates		2.10%	3.10%
Expected volatility		46.00%	52.00%
2012 Non-Employee Stock Option Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-free interest rates	1.60%
Expected lives	10 years
Expected volatility	44.00%
Expected dividend yields	0.00%
2018 Non-Employee Stock Option Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-free interest rates			2.90%
Expected lives		10 years	10 years
Expected volatility			50.00%
Expected dividend yields		0.00%	0.00%
2018 Non-Employee Stock Option Plan \| Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-free interest rates		1.60%
Expected volatility		44.00%
2018 Non-Employee Stock Option Plan \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-free interest rates		1.80%
Expected volatility		45.00%

Stock Options - Reflects activi

Stock Options - Reflects activity (Details) - USD ($)	12 Months Ended
Stock Options - Reflects activity (Details) - USD ($)	Jun. 30, 2020	Jun. 30, 2019
2012 Employee Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, beginning of year	72,500	57,200
Granted	70,940	29,000
Terminated	(10,000)	0
Exercised	(15,600)	(13,700)
Outstanding, end of year	117,840	72,500
Exercisable, end of year	35,000	33,800
Weighted average fair value at grant date of options granted	$ 13.43	$ 9.15
Total intrinsic value of options exercised	$ 278,000	$ 160,000
Total intrinsic value of options outstanding	696,000	1,353,000
Total intrinsic value of options exercisable	$ 389,000	$ 731,000
Outstanding, beginning of year, weighted average exercise price	$ 11.01	$ 7.09
Granted, weighted average exercise price	24.50	16.59
Terminated/Lapsed, weighted average exercise price	19.84	0
Exercised, weighted average exercise price	7.55	6.42
Outstanding, end of period, weighted average exercise price	18.84	11.01
Exercisable, end of period, weighted average exercise price	$ 13.13	$ 8.05
2012 Non-Employee Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, beginning of year	10,200	27,800
Granted	1,800	0
Terminated		(1,800)
Exercised		(15,800)
Outstanding, end of year	12,000	10,200
Exercisable, end of year	5,760	3,000
Weighted average fair value at grant date of options granted	$ 12.94	$ 0
Total intrinsic value of options exercised		$ 192,000
Total intrinsic value of options outstanding	$ 157,000	221,000
Total intrinsic value of options exercisable	$ 87,000	$ 70,000
Outstanding, beginning of year, weighted average exercise price	$ 7.99	$ 6.85
Granted, weighted average exercise price	23.35	0
Terminated/Lapsed, weighted average exercise price		8.70
Exercised, weighted average exercise price		5.91
Outstanding, end of period, weighted average exercise price	10.29	7.99
Exercisable, end of period, weighted average exercise price	$ 8.35	$ 6.27
2018 Non-Employee Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, beginning of year	15,200	0
Granted	33,200	20,000
Terminated		(3,200)
Exercised		(1,600)
Outstanding, end of year	48,400	15,200
Exercisable, end of year	12,240	2,400
Weighted average fair value at grant date of options granted	$ 15.09	$ 10.24
Total intrinsic value of options exercised		$ 24,000
Total intrinsic value of options outstanding	$ 110,000	205,000
Total intrinsic value of options exercisable	$ 40,000	$ 32,000
Outstanding, beginning of year, weighted average exercise price	$ 16.20	$ 0
Granted, weighted average exercise price	26.82	16.2
Terminated/Lapsed, weighted average exercise price		16.2
Exercised, weighted average exercise price		16.2
Outstanding, end of period, weighted average exercise price	23.48	16.20
Exercisable, end of period, weighted average exercise price	$ 21.96	$ 16.2

Stock Options - Stock options o

Stock Options - Stock options outstanding under the 2012 Employee Plan (Details)	12 Months Ended
	Jun. 30, 2020$ / sharesshares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options exercisable, Weighted average exercise price \| $ / shares	$ 21.96
2012 Employee Stock Option Plan [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, Number outstanding	117,840
Options outstanding, Weighted average remaining contractual life	8 years 4 months 24 days
Options outstanding, Weighted average exercise price \| $ / shares	$ 18.84
Options exercisable, Number exercisable	35,000
Options exercisable, Weighted average exercise price \| $ / shares	$ 6.50
2012 Employee Stock Option Plan [Member] \| Exercise price range $ 4.29 - $ 9.63 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, Number outstanding	117,840
Options outstanding, Weighted average remaining contractual life	8 years 4 months 24 days
Options outstanding, Weighted average exercise price \| $ / shares	$ 18.84
Options exercisable, Number exercisable	35,000
Options exercisable, Weighted average exercise price \| $ / shares	$ 6.50
2012 Non-Employee Stock Option Plan [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, Number outstanding	12,000
Options outstanding, Weighted average remaining contractual life	7 years 2 months 12 days
Options outstanding, Weighted average exercise price \| $ / shares	$ 10.29
Options exercisable, Number exercisable	5,760
Options exercisable, Weighted average exercise price \| $ / shares	$ 8.35
2012 Non-Employee Stock Option Plan [Member] \| Exercise price range $4.37 - $8.70 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, Number outstanding	12,000
Options outstanding, Weighted average remaining contractual life	7 years 2 months 12 days
Options outstanding, Weighted average exercise price \| $ / shares	$ 10.29
Options exercisable, Number exercisable	5,760
Options exercisable, Weighted average exercise price \| $ / shares	$ 8.35
2018 Non-Employee Stock Option Plan
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, Number outstanding	48,400
Options outstanding, Weighted average remaining contractual life	9 years 2 months 12 days
Options outstanding, Weighted average exercise price \| $ / shares	$ 23.48
Options exercisable, Number exercisable	12,240
2018 Non-Employee Stock Option Plan \| Exercise price range $16.20 - $30.54 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, Number outstanding	48,400
Options outstanding, Weighted average remaining contractual life	9 years 2 months 12 days
Options outstanding, Weighted average exercise price \| $ / shares	$ 23.48
Options exercisable, Number exercisable	12,240

Stock Options - Additional Info

Stock Options - Additional Information (Details) - USD ($)	12 Months Ended
Stock Options - Additional Information (Details) - USD ($)	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share Based Compensation Expense	$ 583,000	$ 160,000
Share based Compensation Cost Effect On Earnings Per Share Basic And Diluted	$ 0.03	$ 0.01
Proceeds From Stock Options Exercised	$ 80,000	$ 53,000
2012 Employee Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for issuance under the plan	950,000
Percentage Applied To Market Price To Set Grant Price For Grantee Owning Ten Percent Or More Of Entity Common Stock Outstanding	110.00%
Term of stock option awards	10 years
Annual rate at which share-based compensation awards vest	20.00%
Number of stock options, exercisable	35,000	33,800
Number of stock options available for grant	731,960
Unearned stock-based compensation cost related to non-vested awards	$ 849,000
Fair value of stock options that vested during the period	197,000	$ 95,000
Tax benefit from ISO option exercise	$ 0	$ 0
Number of shares outstanding, end of period	117,840	72,500	57,200
Conversion of Stock, Shares Issued	1,628	3,106
Common Stock, Voting Rights	Any plan participant who is granted ISOs and possesses more than 10% of the voting rights of the Company's outstanding common stock
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	15,600	13,700
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	70,940	29,000
Proceeds From Stock Options Exercised	$ 79,000	$ 31,000
2012 Employee Stock Option Plan [Member] \| Exercise price of stock options received in entity shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	3,600	8,200
2012 Non-Employee Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for issuance under the plan	50,000
Term of stock option awards	10 years
Annual rate at which share-based compensation awards vest	20.00%
Number of stock options, exercisable	5,760	3,000
Number of stock options available for grant	0
Unearned stock-based compensation cost related to non-vested awards	$ 46,000
Fair value of stock options that vested during the period	$ 18,000	$ 22,000
Number of shares outstanding, end of period	12,000	10,200	27,800
Conversion of Stock, Shares Issued		4,832
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		15,800
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	1,800	0
2012 Non-Employee Stock Option Plan [Member] \| Exercise price of stock options received in entity shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		14,600
2018 Non-Employee Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for issuance under the plan	50,000
Term of stock option awards	10 years
Annual rate at which share-based compensation awards vest	20.00%
Number of stock options, exercisable	12,240	2,400
Number of stock options available for grant	0
Unearned stock-based compensation cost related to non-vested awards	$ 410,000
Fair value of stock options that vested during the period	133,000	$ 41,000
Tax benefit from ISO option exercise	$ 0
Number of shares outstanding, end of period	48,400	15,200	0
Conversion of Stock, Shares Issued		395
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		1,600
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	33,200	20,000
2018 Non-Employee Stock Option Plan \| Exercise price of stock options received in entity shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		800
2020 Non-Employee Stock Option Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for issuance under the plan	50,000
Term of stock option awards	10 years
Annual rate at which share-based compensation awards vest	20.00%
Number of stock options, exercisable	0
Number of stock options available for grant	50,000
Number of shares outstanding, end of period	0

Stockholders' Equity Transact_2

Stockholders' Equity Transactions (Details) - $ / shares	12 Months Ended
Stockholders' Equity Transactions (Details) - $ / shares	Jun. 30, 2020	Jun. 30, 2019	Sep. 16, 2014
Equity, Class of Treasury Stock [Line Items]
Stock Repurchase Program, Number of Shares Authorized to be Repurchased			1,000,000
Common Stock Shares Outstanding	18,347,351	18,477,874	19,400,000
Treasury Stock Acquired, Average Cost Per Share	$ 16.99
Employees and Directors [Member]
Equity, Class of Treasury Stock [Line Items]
Stock Options Exercised (in shares)	15,600	31,100
Stock Issued During Period Shares Cashless Exercise of Stock Options	3,600	23,600
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period	1,628	8,333
Treasury Stock
Equity, Class of Treasury Stock [Line Items]
Stock Options Exercised (in shares)		0
Treasury Stock, Shares, Acquired	144,405	274,065

401(k) Plan (Details)

401(k) Plan (Details) - USD ($)	12 Months Ended
401(k) Plan (Details) - USD ($)	Jun. 30, 2020	Jun. 30, 2019
Napco Technologies 401 k Plan
Schedule of Deferred Compensation Plans [Line Items]
Deferred compensation plan expense	$ 133,000	$ 133,000

Commitments and Contingencies -

Commitments and Contingencies - Weighted - average lease term (Details)	Jun. 30, 2020
Commitments and Contingencies
Weighted-average remaining lease term	72 years
Weighted-average discount rate	3.55%

Commitments and Contingencies_2

Commitments and Contingencies - Lease liabilities (Details) $ in Thousands	Jun. 30, 2020USD ($)
Schedule, by years, of maturities of lease liabilities
2021	$ 282
2022	272
2023	263
2024	254
2025	245
There after	6,079
Total	$ 7,395

Commitments and Contingencies_3

Commitments and Contingencies - Future minimum lease payments (Details) $ in Thousands	Jun. 30, 2020USD ($)
Future minimum lease payments for operating leases
2020	$ 315
2021	314
2022	311
2023	297
2024	288
Thereafter	19,536
Total	$ 21,061

Commitments and Contingencies_4

Commitments and Contingencies - Additional Information (Details) - USD ($)	Jul. 01, 2019	Jun. 30, 2020	Jun. 30, 2019
Lessee, Lease, Description [Line Items]
Lease, Practical Expedients, Package [true false]	true
Operating lease right of use asset	$ 7,700,000	$ 7,395,000	$ 0
Operating lease liability	$ 7,700,000
Operating Lease Payments		240
Accounting Standards Update 2016-02 [Member]
Lessee, Lease, Description [Line Items]
Lease, Practical Expedients, Package [true false]	true
Operating lease right of use asset	$ 7,700,000
Operating lease liability	$ 7,700,000
Employment and Severance Agreements [Member] \| Chief executive officer [Member]
Lessee, Lease, Description [Line Items]
Annual salary commitment		$ 752,000
Termination pay commitment rate applied to the average of the prior five calendar years compensation		299.00%
Employment and Severance Agreements [Member] \| Senior Vice President of Engineering [Member]
Lessee, Lease, Description [Line Items]
Expiration Year		2022
Annual salary commitment		$ 333,799
Land lease in Dominican Republic expiring 2092 [Member]
Lessee, Lease, Description [Line Items]
Annual minimum rent		$ 288,000
Lessee, Operating Lease, Term of Contract		99 years
Leased property and equipment, excluding foreign land [Member]
Lessee, Lease, Description [Line Items]
Operating lease expense		$ 315,000	$ 330,000

Geographical Data (Details)

Geographical Data (Details) - USD ($) $ in Thousands	12 Months Ended
Geographical Data (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Net Sales	$ 101,359	$ 102,932
Total Identifiable Assets	105,838	85,908
Domestic [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Net Sales	99,496	100,716
Foreign [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Net Sales	1,863	2,216
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Identifiable Assets	69,436	59,683
Dominican Republic [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Identifiable Assets	$ 36,402	$ 26,225

Geographical Data - Additional

Geographical Data - Additional Information (Details) - USD ($)	Jun. 30, 2020	Jul. 01, 2019	Jun. 30, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Inventories	$ 35,231,000		$ 29,576,000
Fixed assets	8,088,000		7,694,000
Operating lease asset	7,395,000	$ 7,700,000	0
Dominican Republic [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Inventories	25,246		22,549
Fixed assets	3,481		3,443
Operating lease asset	$ 7,395		$ 0