ELECTRONIC CONTROL SECURITY INC

CIK:0000803044|SEC Filings

Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Income Statement [Abstract]
Revenues	$ 76,197	$ 81,990	$ 309,204	$ 936,168
Cost of revenues	122,087	129,405	379,058	504,046
Gross profit (loss)	(45,890)	(47,415)	(69,854)	432,122
Research and development		21,863	33,605	68,657
Selling, general and administrative expenses	212,205	268,960	639,768	758,020
Loss from operations	(258,095)	(338,238)	(743,227)	(394,555)
Other expenses (income)
Interest expense	42,168	22,171	84,653	64,574
Other, net	1,354	20,000	4,062	21,000
Total other expenses (income)	43,522	42,171	88,715	85,574
Loss before income taxes	(301,617)	(380,409)	(831,942)	(480,129)
Income tax benefit	(45,530)	(28,986)	(140,673)	(13,946)
Loss before dividends	(256,087)	(351,423)	(691,269)	(466,183)
Dividends related to convertible preferred stock	40,683	36,858	120,817	109,455
Net loss attributable to common shareholders	$ (296,770)	$ (388,281)	$ (812,086)	$ (575,638)
Net loss per share:
Basic (in dollars per share)	$ (0.02)	$ (0.03)	$ (0.05)	$ (0.04)
Diluted (in dollars per share)	$ (0.02)	$ (0.03)	$ (0.05)	$ (0.04)
Weighted average number of common shares and equivalents:
Basic (in shares)	15,866,618	14,533,813	15,866,624	13,283,204
Diluted (in shares)	15,866,618	14,533,813	15,866,624	13,283,204

Consolidated Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities:
Net loss before deemed dividends	$ (691,269)	$ (466,183)
Adjustments to reconcile loss to net cash used in operating activities:
Depreciation and amortization	123,010	120,440
Deferred income taxes	(141,044)	(17,227)
Increase (decrease) in cash attributable to changes in
Accounts receivable	30	62,571
Inventories	(12,967)	(73,870)
Other current assets	10,713	20,783
Accounts payable and accrued expenses	284,062	150,171
Other assets and liabilities	(6,650)
Net cash used in operating activities	(434,115)	(203,315)
Cash flows from financing activities:
Payments on short-term debt		(64,500)
Payments on long-term debt and leases	(24,425)	(2,639)
Purchase of treasury stock	(63)
Increase (decrease) in due to officers, shareholders and affiliates	458,739	269,607
Net cash provided by financing activities	434,251	202,468
Net increase (decrease) in cash and cash equivalents	136	(847)
Cash and cash equivalents at beginning of period	556	1,403
Cash and cash equivalents at end of period	692	556
Supplemental disclosures of cash flow information Cash paid during the period for:
Interest	16,967	18,378
Supplemental disclosures of noncash financing activities:
Conversion of amounts due to shareholders and officers to common stock		260,000
Acquisition of equipment utilizing a long-term capital lease	$ 11,000

Consolidated Balance Sheets (Unaudited) (USD $)	Mar. 31, 2014	Jun. 30, 2013
ASSETS
Cash and cash equivalents	$ 692	$ 556
Accounts receivable, net of allowance of $420,762 and $425,000	586,289	586,319
Inventories, net	1,855,170	1,842,203
Current portion, net of deferred income taxes	247,411	167,499
Other current assets	12,115	22,828
Total current assets	2,701,677	2,619,405
Property, equipment and software development costs - net	168,255	219,402
Intangible assets - net	742,131	798,932
Deferred income taxes	740,113	678,981
Other assets	13,229	17,643
ASSETS	4,365,405	4,334,363
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable and accrued expenses	1,426,453	1,142,391
Due to officers, shareholders and affiliates	900,510	441,771
Current maturities of debt	40,883	32,418
Total current liabilities	2,367,846	1,616,580
Noncurrent liabilities
Long-term debt	418,667	440,557
Subordinated liabilities to officers and shareholders	848,080	848,080
Other		7,000
Total liabilities	3,634,593	2,912,217
Shareholders' equity
Common Stock, $.001 par value; 30,000,000 shares authorized; 15,967,146 and 15,967,146 shares issued; 15,866,618 and 15,867,146 shares outstanding	15,967	15,967
Additional paid-in capital	14,240,725	14,119,909
Accumulated deficit	(13,523,608)	(12,711,521)
Accumulated other comprehensive income	4,790	4,790
Treasury stock, at cost, 100,528 and 100,000 shares	(10,063)	(10,000)
Total shareholders' equity	730,812	1,422,146
Liabilities and Equity	4,365,405	4,334,363
Series A Convertible Preferred Stock (Member)
Shareholders' equity
Convertible Preferred stock	3,000	3,000
Series B 10% Convertible Preferred Stock (Member)
Shareholders' equity
Convertible Preferred stock	$ 1	$ 1