| Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | 1. a. Nature of the Business Learning Tree International, Inc. and subsidiaries (“the Company,” “we,” “us,” or “our”) develop, market, and deliver a broad, predominately proprietary, library of instructor - led classroom courses that are designed to meet the professional development needs of information technology (“IT”) professionals and managers worldwide. These courses are delivered primarily at our leased education centers located in the United States, the United Kingdom, Canada, Sweden and Japan. Such course events are also conducted from specially equipped facilities, in hotel and conference facilities, and at customer sites throughout the world. Almost all of our course titles are also available to individuals located worldwide through Learning Tree AnyWare™, our patent - pending live online learning interface that allows individuals at any location to attend a live instructor - led Learning Tree class via the Internet. Our courses provide both breadth and depth of education across a wide range of technical and management disciplines, including operating systems, databases, computer networks, computer and network security, web development, programming languages, software engineering, open source applications, project management, business skills, and leadership and professional development. We follow a 52 53 September. 2016 September 30, 2016, 2015 October 2, 2015. September 30, 2016, October 2, 2015, September 30, 2016 October 2, 2015. 2016 2015 52 Certain items in the fiscal year 2015 b. Basis of Presentation As of and for the fiscal year ended September 30, 2016, $15.3 2016 four September 30, 2016, $8.5 2017, To address the decline in revenue, we have been executing upon new strategies to increase the number of attendees in our public courses and expand our overall customer base. A number of these strategies relate to pricing promotions to attract new customers or to re - engage old customers that have not used our services in many years. We are also partnering with certification organizations, hardware and software vendors, as well some other training providers to augment the breadth of training courses we can offer to organizations. Another strategy is to grow our position as a leading worldwide provider of training and workforce development to IT professionals and managers through the continued growth of our Workforce Optimization Solutions. Workforce Optimization Solutions augments and enhances our core training capabilities enabling Learning Tree to partner with our customers in helping them develop a high - performing organization through workforce development and process improvement. We have accelerated our Comprehensive Cost Reduction Program with the goal of significantly reducing our fiscal year 2017 $10.0 $12.0 2016. $6.8 2016 2015. 2017 • Eliminated our direct mail course catalog advertising program. In addition to being a “green initiative”, we believe that our overall customer - base has shifted the manner in which it selects and purchases courses away from printed catalogs toward greater use of digital channels, such as website, social media and digital advertising. • Made our course notes available electronically and only produce a paper copy if requested by our attendee. • Completed, during the fourth 2016, 26 • Reduced the compensation paid to our Board of Directors in 2016, August 1, 2016, • Reduced our real estate costs, through the elimination or nonrenewal of certain leased facilities and negotiation for replacement facilities. As other facility leases expire, additional cost reductions will be evaluated. As part of this program, Learning Tree will continue to review and take appropriate actions to streamline its operations in order to reduce or eliminate excess costs. To further address our liquidity needs in the near term, on January 12, 2017, $3.0 85% may, may 14 We are also continuing to evaluate additional sources of capital and financing. We have retained the services of a financial advisor to assist us in assessing strategic options available to the Company to improve liquidity. However, there is no assurance that additional capital and/or financing will be available to the Company, and even if available, whether it will be on terms acceptable to us or in amounts required. The stabilization of revenues and reduction in costs are integral to our goal of achieving a break even operating income line and a positive cash flow from operations for fiscal year 2017. c. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Learning Tree International, Inc. and our subsidiaries. All significant intercompany accounts and transactions have been eliminated. The following is a list of our subsidiaries as of September 30, 2016: Learning Tree International USA, Inc. (U.S.) Learning Tree International, K.K. (Japan) Learning Tree International Ltd. (United Kingdom) Learning Tree International AB (Sweden) Learning Tree International Inc. (Canada) Advanced Technology Marketing, Inc. (U.S.) AnyWare Live, Inc. (U.S.) d. Revenue Recognition and Accounts Receivable Our revenues are received from business entities and government agencies for the professional training of their employees. Course events range in length from one five three 52 53 five 52 53 We offer our customers a multiple - course sales discount referred to as a “Learning Tree Training Passport” or “Training Passport”. A Learning Tree Training Passport allows an individual Passport holder to attend up to a specified number of Learning Tree courses over a one two We believe it is appropriate to recognize revenues on this basis in order to most closely match revenue and related costs, as the substantial majority of our Passport holders do not attend the maximum number of course events permitted under their Learning Tree Training Passport. We believe that the use of recent historical data is reasonable and appropriate because of the relative stability of the average actual number of course events attended by Passport holders. The average attendance rate for all expired Learning Tree Training Passports has closely approximated the estimated rate we utilize. Although we have seen no material changes in the historical rates as the number of course titles has changed, we monitor such potential effects. In general, determining the estimated average number of course events that will be attended by a Passport holder is based on historical trends that may may one two For Training Passport products for which historical utilization data is not available, we assume that the estimated average number of courses to be attended is equal to the number of courses available on the Training Passport. Assumed utilization rates may In addition to our Learning Tree Training Passports, we also offer a multiple - course sales discount referred to as “Learning Tree Training Vouchers” or Training Vouchers”. With Learning Tree Training Vouchers, a customer buys the right to send a specified number of attendees to Learning Tree courses over a six twelve twelve Trade accounts receivable are reduced by an allowance for amounts that may e. Share - Based Compensation We estimate the fair value of share - based option awards on the date of grant using an option - pricing model. We estimate the fair value of share - based restricted stock units and restricted stock grants using the closing price of our stock on the date of grant. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in our consolidated statements of operations and comprehensive loss. Our determination of fair value of share - based payment awards on the date of grant using an option - pricing model is affected by assumptions regarding a number of variables, including our expected stock price volatility, expected term, dividend yield and risk - free interest rates. We analyzed our historical volatility to estimate the expected volatility. The risk - free interest rate assumption is based on the U.S. Treasury rate at the date of grant, that most closely resembles the expected life of our options. The estimated expected life represents the weighted - average period the stock options are expected to remain outstanding and has been determined based on the simplified method under ASC 718, Compensation - Stock Compensation As share - based compensation expense recognized in the consolidated statements of operations and comprehensive loss is based on awards ultimately expected to vest, it has been reduced for estimated pre - vesting forfeitures. Forfeitures were estimated based on historical experience. f. Course Development Costs Course development costs are charged to operations in the period incurred. g. Advertising Advertising costs are charged to expense in the period incurred. Advertising costs totaled $383 $612 2016 2015, h. Cash and Cash Equivalents and Interest - bearing Investments We consider highly liquid investments with remaining maturities of ninety Restricted interest - bearing investments at September 30, 2016 $1,867 (1,439 $179 (1,534 $897 $2,185 (1,439 $184 (1,534 $896 October 2, 2015. i. Marketing Expenses Marketing expenses primarily include the external costs associated with the design, printing, postage, list rental and handling of direct mail advertising materials to be mailed in the future. These costs are charged to expense in the month in which the advertising materials are mailed since the benefit period for such costs is short and the amount of future benefit is not practically measurable. Marketing expenses for fiscal years 2016 2015 $5,857 $8,942 j. Equipment, Property and Leasehold Improvements Equipment, property and leasehold improvements are recorded at cost and depreciated or amortized using the straight - line method over the following estimated useful lives: Education and office equipment (years) 3 to 5 Transportation equipment (years) 4 Accounting software (years) 7 Leasehold improvements 20 years or the life of the lease, if shorter Depreciation and amortization expense totaled $2,830 $4,318 2016 2015, During fiscal year 2016, $1.8 $0.3 tenant The fair value of a liability for an asset retirement obligation (“ARO”) associated with a leased facility is recorded as an asset (leasehold improvements) and a liability when there is a legal obligation associated with the retirement of a long - lived asset and the amount can be reasonably estimated. See also Note 2 k. Long - Lived Assets We periodically review the carrying value of our long - lived assets, such as equipment, property and leasehold improvements for impairment or whenever events or changes in circumstances indicate that the carrying value may l. Deferred Revenues Deferred revenues primarily relate to unearned revenues associated with Training Passports, Training Vouchers and advance payments received from customers for course events to be held in the future. m. Comprehensive loss We report comprehensive income (loss) in the consolidated statements of operations and comprehensive loss. Other comprehensive loss represents changes in stockholders’ equity from non - owner sources and is comprised of foreign currency translation adjustments. At the end of fiscal year 2016, $(882) $(578) 2015. n. Income Taxes We provide for income taxes under the provisions of Financial Accounting Standards Board ASC 740, Income Taxes may The tax effects of uncertain tax positions are recognized in the consolidated financial statements only if the position is more likely than not to be sustained on audit, based on the technical merits of the position. For tax positions meeting the more likely than not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50% 740 10 o. Foreign Currency We translate the financial statements of our foreign subsidiaries from the local (functional) currencies to U.S. dollars. The rates of exchange at each fiscal year end are used for translating the assets and liabilities and the average monthly rates of exchange for each year are used for the consolidated statements of operations and comprehensive loss. Gains or losses arising from the translation of the foreign subsidiaries’ financial statements are included in the accompanying consolidated balance sheets as a separate component of stockholders’ equity. Gains or losses resulting from foreign currency transactions are included in the consolidated statements of operations and comprehensive loss. To date, we have not sought to hedge the risk associated with fluctuations in currency exchange rates, and therefore we continue to be subject to such risk. p. Deferred Facilities Rent Operating Lease Activities: We lease education center and administrative office space under various operating lease agreements. Certain lease agreements include provisions that provide for cash incentives, graduated rent payments and other inducements. We recognize rent expense on a straight - line basis over the related terms of such leases. The value of lease incentives and/or inducements, along with the excess of the rent expense recognized over the rentals paid, is recorded as deferred facilities rent in the accompanying consolidated balance sheets. Lease Termination Activities: We record liabilities for costs that will be incurred under a contract without economic benefit at estimated fair value. We have vacated space in leased facilities subject to operating leases and recorded the estimated liability associated with future rentals at the cease - use date. The fair value of the liability at the cease - use date was determined based on the remaining cash flows for lease rentals, and minimum lease payments, reduced by estimated sublease rentals and certain subtenant reimbursements that could be reasonably obtained for the property, discounted using a credit - adjusted risk - free rate. The liability is adjusted for changes, if any, resulting from revisions to estimated cash flows after the cease - use date, measured using the original historical credit - adjusted risk - free rate. Changes due to the passage of time are recognized as an increase in the carrying amount of the liability and as accretion expense. q. Fair Value of Financial Instruments The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate their fair values because of the short - term nature of these instruments. r. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make judgments, estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. s. Recently Issued Accounting Pronouncements In May 2014, 2014 09, Revenue from Contracts with Customers (Topic 606) 2014 09”). August 2015, 2015 14 Revenue from Contracts with Customers (Topic 606): 2015 14”), 2014 09 one December 15, 2017. December 15, 2016. September 30, 2018 In August 2014, 2014 15, “Presentation of Financial Statements - Going Concern (Subtopic 205 40): 2014 15”). one 2014 15 December 15, 2016, 2014 15. In November 2015, 2015 17, Income Taxes (Topic 740): 2015 17”). 2015 17 December 15, 2016. may 2015 17. September 30, 2017 In February 2016, 2016 02, Leases (Topic 842) 2016 02”). 12 2016 02 December 15, 2018, September 28, 2019 In March 2016, 2016 09, Compensation – Stock Compensation (Topic 718): 2016 09”). 2016 09 December 15, 2016, September 30, 2017. 2016 09 In August 2016, 2016 15, Statement of Cash Flows (Topic 230) 2016 15”). December 15, 2017, September 30, 2018 In November 2016, 2016 18, Statement of Cash Flows (Topic 230) 2016 18”). December 15, 2017, September 30, 2018 Other recent accounting pronouncements issued by the FASB (including the Emerging Issues Task Force), the American Institute of Certified Public Accountants and the SEC did not, or management believes will not, have a material impact on our present or future consolidated financial statements. |
