Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2021 | Sep. 09, 2021 | Dec. 31, 2020 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2021 | ||
Entity Registrant Name | eGain Corporation | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 250.8 | ||
Entity Common Stock, Shares Outstanding | 31,359,558 | ||
Entity Central Index Key | 0001066194 | ||
Current Fiscal Year End Date | --06-30 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 63,231 | $ 46,609 |
Restricted cash | 7 | 6 |
Accounts receivable, less allowance for doubtful accounts of $434 and $384 as of June 30, 2021 and 2020, respectively | 26,311 | 22,708 |
Costs capitalized to obtain revenue contracts, net | 1,323 | 1,066 |
Prepaid expenses | 3,028 | 2,514 |
Other current assets | 778 | 617 |
Total current assets | 94,678 | 73,520 |
Property and equipment, net | 705 | 713 |
Operating lease right-of-use assets | 2,191 | 2,962 |
Costs capitalized to obtain revenue contracts, net of current portion | 2,612 | 2,380 |
Intangible assets, net | 26 | |
Goodwill | 13,186 | 13,186 |
Other assets, net | 1,191 | 918 |
Total assets | 114,563 | 93,705 |
Current liabilities: | ||
Accounts payable | 3,068 | 2,429 |
Accrued compensation | 8,444 | 7,916 |
Accrued liabilities | 4,352 | 3,423 |
Operating lease liabilities | 1,466 | 1,753 |
Deferred revenue | 46,211 | 36,644 |
Total current liabilities | 63,541 | 52,165 |
Deferred revenue, net of current portion | 3,332 | 4,826 |
Operating lease liabilities, net of current portion | 797 | 1,385 |
Other long-term liabilities | 832 | 688 |
Total liabilities | 68,502 | 59,064 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $0.001 par value - authorized: 50,000 shares; outstanding: 31,231 and 30,821 shares as of June 30, 2021 and 2020, respectively | 31 | 31 |
Additional paid-in capital | 378,451 | 374,399 |
Notes receivable from stockholders | (92) | (90) |
Accumulated other comprehensive loss | (1,220) | (1,631) |
Accumulated deficit | (331,109) | (338,068) |
Total stockholders' equity | 46,061 | 34,641 |
Total liabilities and stockholders' equity | $ 114,563 | $ 93,705 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowance for doubtful accounts | $ 434 | $ 384 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000 | 50,000 |
Common stock, shares outstanding | 31,231 | 30,821 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue: | ||
Revenue | $ 78,287 | $ 72,729 |
Cost of revenue: | ||
Cost of revenue | 19,267 | 21,081 |
Gross profit | 59,020 | 51,648 |
Operating expenses: | ||
Research and development | 17,933 | 16,638 |
Sales and marketing | 25,999 | 19,623 |
General and administrative | 7,749 | 7,981 |
Total operating expenses | 51,681 | 44,242 |
Income from operations | 7,339 | 7,406 |
Interest income, net | 13 | 395 |
Other (expense) income, net | (559) | 185 |
Income before income tax (benefit) provision | 6,793 | 7,986 |
Income tax benefit (provision) | 166 | (778) |
Net income | $ 6,959 | $ 7,208 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.22 | $ 0.24 |
Diluted (in dollars per share) | $ 0.21 | $ 0.23 |
Weighted-average shares used in computation: | ||
Basic (in shares) | 31,007 | 30,620 |
Diluted (in shares) | 32,597 | 31,956 |
Below is a summary of stock-based compensation included in the costs and expenses above: | ||
Stock-based compensation | $ 1,700 | $ 1,861 |
Cost of revenue | ||
Below is a summary of stock-based compensation included in the costs and expenses above: | ||
Stock-based compensation | 326 | 205 |
Sales and marketing expense | ||
Below is a summary of stock-based compensation included in the costs and expenses above: | ||
Stock-based compensation | 657 | 551 |
Research and development | ||
Below is a summary of stock-based compensation included in the costs and expenses above: | ||
Stock-based compensation | 509 | 706 |
General and administrative expense | ||
Below is a summary of stock-based compensation included in the costs and expenses above: | ||
Stock-based compensation | 208 | 399 |
Subscription | ||
Revenue: | ||
Revenue | 72,371 | 66,129 |
Cost of revenue: | ||
Cost of revenue | 13,507 | 14,398 |
Professional services | ||
Revenue: | ||
Revenue | 5,916 | 6,600 |
Cost of revenue: | ||
Cost of revenue | $ 5,760 | $ 6,683 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $ 6,959 | $ 7,208 |
Other comprehensive income, net of taxes: | ||
Foreign currency translation adjustments | 411 | (172) |
Comprehensive income | $ 7,370 | $ 7,036 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional Paid-in Capital | Notes Receivable From Stockholders | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total |
Balance at beginning of period at Jun. 30, 2019 | $ 31 | $ 371,099 | $ (88) | $ (1,459) | $ (345,276) | $ 24,307 |
Balance at beginning of period (in shares) at Jun. 30, 2019 | 30,478 | |||||
Interest on stockholder's notes | (2) | (2) | ||||
Issuance of common stock upon exercise of stock options | 543 | 543 | ||||
Issuance of common stock upon exercise of stock options (in shares) | 210 | |||||
Issuance of common stock in connection with employee stock purchase plan | 867 | 867 | ||||
Issuance of common stock in connection with employee stock purchase plan (in shares) | 133 | |||||
Issuance of common stock from public offering, net of issuance costs | 29 | 29 | ||||
Stock-based compensation | 1,861 | 1,861 | ||||
Foreign currency translation adjustments | (172) | (172) | ||||
Net income | 7,208 | 7,208 | ||||
Balance at end of period at Jun. 30, 2020 | $ 31 | 374,399 | (90) | (1,631) | (338,068) | 34,641 |
Balance at end of period (in shares) at Jun. 30, 2020 | 30,821 | |||||
Interest on stockholder's notes | (2) | (2) | ||||
Issuance of common stock upon exercise of stock options | 1,221 | 1,221 | ||||
Issuance of common stock upon exercise of stock options (in shares) | 279 | |||||
Issuance of common stock in connection with employee stock purchase plan | 1,131 | 1,131 | ||||
Issuance of common stock in connection with employee stock purchase plan (in shares) | 131 | |||||
Stock-based compensation | 1,700 | 1,700 | ||||
Foreign currency translation adjustments | 411 | 411 | ||||
Net income | 6,959 | 6,959 | ||||
Balance at end of period at Jun. 30, 2021 | $ 31 | $ 378,451 | $ (92) | $ (1,220) | $ (331,109) | $ 46,061 |
Balance at end of period (in shares) at Jun. 30, 2021 | 31,231 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 6,959 | $ 7,208 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of intangible assets | 26 | 268 |
Amortization of costs capitalized to obtain revenue contracts | 1,212 | 842 |
Amortization of right-of-use assets | 1,635 | 1,540 |
Depreciation and amortization | 428 | 304 |
Provision of doubtful accounts | 400 | 317 |
Deferred income taxes | (341) | 261 |
Stock-based compensation | 1,700 | 1,861 |
(Gain) loss on disposal of property and equipment | (1) | (1) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,767) | (2,882) |
Costs capitalized to obtain revenue contracts | (1,536) | (1,812) |
Prepaid expenses | (483) | (122) |
Other current assets | (151) | 401 |
Other non-current assets | 79 | 175 |
Accounts payable | 626 | (1,740) |
Accrued compensation | 282 | 2,525 |
Accrued liabilities | 738 | 1,105 |
Deferred revenue | 6,682 | 5,272 |
Operating lease liabilities | (1,726) | (1,640) |
Other long-term liabilities | 100 | 176 |
Net cash provided by operating activities | 13,862 | 14,058 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (402) | (514) |
Net cash used in investing activities | (402) | (514) |
Cash flows from financing activities: | ||
Payments on bank borrowings | (31) | |
Proceeds from bank borrowings | 31 | |
Proceeds from exercise of stock options | 1,221 | 543 |
Proceeds from employee stock purchase plan | 1,131 | 867 |
Net cash provided by financing activities | 2,352 | 1,410 |
Effect of change in exchange rates on cash and cash equivalents | 811 | (206) |
Net increase in cash, cash equivalents and restricted cash | 16,623 | 14,748 |
Cash, cash equivalents and restricted cash at beginning of year | 46,615 | 31,867 |
Cash, cash equivalents and restricted cash at end of year | 63,238 | 46,615 |
Supplemental cash flow disclosures: | ||
Cash paid for interest | 2 | |
Cash paid for taxes | 221 | 374 |
ROU assets recognized from lease modifications | $ 779 | |
Non-cash items: | ||
Purchases of equipment through trade accounts payable | $ 10 |
Summary of Business and Signifi
Summary of Business and Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2021 | |
Summary of Business and Significant Accounting Policies | |
Summary of Business and Significant Accounting Policies | 1. SUMMARY OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES Organization and Nature of Business eGain Corporation (“eGain”, the “Company”, “our”, “we” or “us”) automates customer engagement with an innovative Software as a service (SaaS) platform, powered by deep digital, Artificial intelligence (AI), and knowledge capabilities. We are headquartered in the United States. We also operate in United Kingdom and India. We sell mostly to large enterprises across financial services, telecommunications, retail, government, healthcare, and utilities. With our mantra of AX + BX + CX = DX™ , we guide clients to effortless digital experience (DX) by holistically optimizing agent experience (AX), business experience (BX) and customer experience (CX). More than one hundred eighty leading brands use eGain cloud software to improve customer satisfaction, empower agents, reduce service cost and boost sales . Principles of Consolidation The consolidated financial statements include the accounts of eGain and our wholly-owned subsidiaries, eGain Communications Ltd., Exony Limited (Exony), eGain Communications Pvt. Ltd., eGain Communications (SA), eGain France S.A.R.L, Netherlands (eGain Communications B.V.) and eGain Deutschland GmbH. All significant intercompany balances and transactions have been eliminated. Business Combinations Business combinations are accounted for at fair value under the purchase method of accounting. Acquisition costs are expensed as incurred and recorded in general and administrative expenses and changes in deferred tax asset valuation allowances and income tax uncertainties after the acquisition date affect income tax expense. The accounting for business combinations requires estimates and judgment as to expectations for future cash flows of the acquired business, and the allocation of those cash flows to identifiable intangible assets, in determining the estimated fair value for assets acquired and liabilities assumed. The fair values assigned to tangible and intangible assets acquired and liabilities assumed are based on management’s estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuation procedures and techniques. If the actual results differ from the estimates and judgments used in these estimates, the amounts recorded in the consolidated financial statements could result in a possible impairment of the intangible assets and goodwill, or require acceleration of the amortization expense of finite-lived intangible assets. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. The estimates are based upon information available as of the date of the consolidated financial statements. Actual results could differ from those estimates. We evaluate our significant estimates, including those related to revenue recognition, provision for doubtful accounts, valuation of stock-based compensation, valuation of long-lived assets, valuation of deferred tax assets, and litigation, among others. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. We refer to accounting estimates of this type as “critical accounting estimates.” Foreign Currency The functional currency of each of our international subsidiaries is the local currency of the country in which it operates. Assets and liabilities of our foreign subsidiaries are translated at month-end exchange rates, and revenue and expenses are translated at the average monthly exchange rates. The resulting cumulative translation adjustments are recorded as a component of accumulated other comprehensive income. Foreign currency transaction gains and losses are included in “other (expense) income, net” in the consolidated statements of operations, and resulted in a gain of $570,000 and a loss of $172,000, in fiscal years ended June 30, 2021 and 2020, respectively. Cash and Cash Equivalents, Restricted Cash and Investments We consider all highly liquid investments with an original purchase to maturity date of three months or less to be cash equivalents. Time deposits held for investments that are not debt securities are included in short-term investments in the consolidated balance sheets. Investments in time deposits with original maturities of more than three months but remaining maturities of less than one year are considered short-term investments. Investments held with the intent to reinvest or hold for longer than a year, or with remaining maturities of one year or more, are considered long-term investments. As of June 30, 2021 and 2020 we did not have any short-term or long-term investments. Cash earmarked for a specific purpose and therefore not available for immediate and general use by the Company is considered restricted cash. Expected usage of restricted cash within one year is classified as a current asset; expected usage more than a year is considered a non-current asset. As of June 30, 2021 and 2020, our restricted cash was nominal and expected to be used within one year. Fair Value of Financial Instruments Our financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities. We do not have any derivative financial instruments. We believe the reported carrying amounts of these financial instruments approximate fair value, based upon their short-term nature and comparable market information available at the respective balance sheet dates. Concentration of Credit Risk Financial instruments that subject us to concentrations of credit risk consist principally of cash and cash equivalents and trade accounts receivable. Cash and cash equivalents are deposited with high credit quality institutions. We are exposed to credit risk in the event of default by these institutions to the extent of the amount recorded on the balance sheet. We invest excess cash primarily in money market funds, which are highly liquid securities that bear minimal risk. In addition, we have investment policies and procedures that are reviewed periodically to minimize credit risk. Our cash, cash equivalents and restricted cash were $63.2 million as of June 30, 2021 and exceeded the FDIC (Federal Deposit Insurance Corporation) limits. Our customer base extends across many different industries and geographic regions. Revenue is allocated to individual countries and geographic region by customer, based on where the product is shipped to and location of services performed. Cisco Systems, Inc. accounted for 21% and 18% of total revenue and BT PLC accounted for 13% and 10% of total revenue in fiscal years 2021 and 2020, respectively. We perform ongoing credit evaluations of our customers with outstanding receivables and generally do not require collateral. In addition, we established an allowance for doubtful accounts based upon factors surrounding the credit risk of customers, historical trends and other information. Three partners and customers accounted for 30%, 17%, and 16% of accounts receivable as of June 30, 2021, respectively. Two partners and customers accounted for 23% and 18% of accounts receivable as of June 30, 2020. Accounts Receivable and Allowance for Doubtful Accounts We extend unsecured credit to our customers on a regular basis. Our accounts receivable are derived from revenue earned from customers and are not interest bearing. We also maintain an allowance for doubtful accounts to reserve for potential uncollectible trade receivables. We review our trade receivables by aging category to identify specific customers with known disputes or collectibility issues. We exercise judgment when determining the adequacy of these reserves as we evaluate historical bad debt trends, general economic conditions in the U.S. and internationally, and changes in customer financial conditions. If we made different judgments or utilized different estimates, material differences may result in additional reserves for trade receivables, which would be reflected by charges in general and administrative expenses for any period presented. We write off a receivable after all collection efforts have been exhausted and the amount is deemed uncollectible. In certain Company contracts, contractual billings do not coincide with revenue recognized on the contract. Unbilled accounts receivables are recorded when revenue recognized on the contract exceeds billings, pursuant to contract provisions, and become billable upon certain criteria being met. Unbilled accounts receivables, for which the Company has the unconditional right to consideration, totaled $719,000 and $1.4 million as of June 30, 2021 and 2020, respectively, and are included in the accounts receivable balance. Property and Equipment, Net Property and equipment, net, is stated at cost, net of accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful life of the respective assets, which typically is between three or five years. Leasehold improvements and leased equipment are depreciated on a straight-line basis over the shorter of the lease term or useful life of the asset, which is typically three to five years. Goodwill and Other Intangible Assets, Net We review goodwill annually for impairment or sooner whenever events or changes in circumstances indicate that it may be impaired. These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. In addition, we evaluate purchased intangible assets to determine that all such assets have determinable lives. We operate under a single reporting unit and accordingly, all of our goodwill is associated with the entire company. We had no impairment for fiscal years ended June 30, 2021 and 2020. Impairment of Long-Lived Assets We review long-lived assets for impairment, including property and equipment, whenever events or changes in business circumstances indicate that the carrying amounts of the assets may not be fully recoverable. An impairment loss is recognized when estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition is less than its carrying amount. During fiscal years 2021 and 2020, we did not have any such impairment losses. Deferred Revenue Deferred revenue primarily consists of payments received in advance of revenue recognition from cloud, term and ratable licenses, and maintenance and support services and is recognized as the revenue recognition criteria are met. We generally invoice customers in annual or quarterly installments. The deferred revenue balance does not represent the total contract value of annual or multi-year, non-cancelable cloud or maintenance and support agreements. Deferred revenue is influenced by several factors, including seasonality, the compounding effects of renewals, invoice duration, invoice timing and new business linearity within the quarter. Deferred revenue that will be recognized during the succeeding twelve-month period is recorded as current deferred revenue and the remaining portion is recorded as noncurrent. Cost Capitalized to Obtain Revenue Contracts, Net Under Topic 606, we capitalize incremental costs of obtaining non-cancelable subscription and support revenue contracts. The capitalized amounts consist primarily of sales commissions paid to our direct sales force. Capitalized amounts also include (i) amounts paid to employees other than the direct sales force who earn incentive payouts under annual compensation plans that are tied to the value of contracts acquired and (ii) the associated payroll taxes and fringe benefit costs associated with the payments to our employees. Costs capitalized related to new revenue contracts are generally deferred and amortized on a straight-line basis over a period of benefit that we estimate to be five years. We determine the period of benefit by taking into consideration the historical and expected durations of our customer contracts, the expected useful lives of our technologies, and other factors. Commissions for renewal contracts relating to our cloud-based arrangements are expensed when incurred, as we do not consider renewal contracts to be commensurate with initial customer contracts. Historically, any commission associated with renewals have been immaterial. Amortization of costs to obtain revenue contracts is included as a component of sales and marketing expenses in our consolidated statements of operations. The Company does not adjust transaction price for the effects of a significant financing component when the period between the transfers of the promised good or service to the customer and payment for that good or service by the customer is expected to be one year or less. The Company assessed each of its revenue contracts in order to determine whether a significant financing component exists, and determined its contracts did not include a significant financing component for the years ended June 30, 2021 and 2020. During the fiscal year ended June 30, 2021 and 2020, we capitalized $1.5 million and $1.8 million of costs to obtain revenue contracts, respectively, and amortized $1.2 million and $842,000 to sales and marketing expense, respectively. Capitalized costs to obtain revenue contracts, net were $3.9 million and $3.4 million as of June 30, 2021 and June 30, 2020, respectively. Leases Lease agreements are evaluated to determine whether an arrangement is or contains a lease in accordance with ASC 842, Leases . Operating leases are included in operating lease right-of-use (ROU) assets, current operating lease liabilities, and noncurrent operating lease liabilities in the consolidated financial statements. ROU assets represent the Company’s right to use leased assets over the agreed upon term. Lease liabilities represent the Company’s contractual obligation to make lease payments over the lease term. For operating leases, ROU assets and lease liabilities are recognized at the commencement date of the lease. The lease liability is measured as the present value of the lease payments over the lease term, using the rate implicit in the lease if readily determinable. If the rate implicit in the lease cannot be readily determined, the Company uses its incremental borrowing rate at lease commencement. The operating lease right-of-use assets are calculated as the present value of the remaining lease payments plus unamortized initial direct costs and any prepayments, less unamortized lease incentives received. Operating leases typically include non-lease components such as common-area maintenance costs. We have elected to include non-lease components with lease payments for the purpose of calculating lease right-of-use assets and liabilities, to the extent that they are fixed. Non-lease component payments that are not fixed are expensed as incurred as variable lease payments. Lease terms may include renewal or extension options to the extent they are reasonably certain to be exercised. The assessment of whether renewal or extension options are reasonably certain to be exercised is made at lease commencement. Factors considered in determining whether an option is reasonably certain of exercise include, but are not limited to, the value of any leasehold improvements, the value of renewal rates compared to market rates, and the presence of factors that would cause a significant economic penalty to the Company if the option were not exercised. Lease expense is recognized on a straight-line basis over the lease term. The Company has elected not to recognize right-of-use assets and obligations for leases with an initial term of twelve months or less, and has applied a capitalization threshold to recognize a lease on the balance sheet. The expense associated with short-term leases and leases that do not meet the Company’s capitalization threshold are recorded to lease expense in the period it is incurred. Software Development Costs We account for software development costs in accordance with ASC 985, Software , for costs of the software to be sold, leased or marketed, whereby costs for the development of new software products and substantial enhancements to existing software products are included in research and development expense as incurred until technological feasibility has been established, at which time any additional costs are capitalized. Technological feasibility is established upon completion of a working model. To date, software development costs incurred in the period between achieving technological feasibility and general availability of software have not been material and have been charged to operations as incurred. Advertising Costs We expense advertising costs as incurred. Total advertising expenses for the fiscal years ended June 30, 2021 and 2020 were $190,000 and $221,000, respectively. Stock-Based Compensation We account for stock-based compensation in accordance with ASC 718, Compensation—Stock Compensation . Determining the fair value of the stock-based awards at the grant date requires significant judgment and the use of estimates, particularly surrounding Black-Scholes valuation assumptions such as stock price volatility and expected option term. Stock-based compensation expense for employee and non-employee awards is recognized as expense over the requisite service period, which is generally in line with the vesting period. Income Taxes Income taxes are accounted for using the asset and liability method in accordance with ASC 740, Income Taxes. Under this method, deferred tax liabilities and assets are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. For the legacy eGain business in the United States, based upon the weight of available evidence, which includes our historical operating performance, our future investment plans, and the uncertainty in the current market environment due to COVID-19, we have provided a full valuation allowance against our net deferred tax assets. For the legacy eGain business in the United Kingdom, based on the positive evidence, the Company has determined it would be able to utilize the deferred tax assets and does not have a valuation allowance against the deferred tax assets. The remaining eGain foreign operations as well as Exony’s business have historically been profitable and we believe it is more likely than not that those assets will be realized. Our tax provision primarily relates to foreign activities as well as state income taxes. Our income tax rate differs from the statutory tax rates primarily due to the utilization of net operating loss carry-forwards which had previously been valued against as well as our foreign operations. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (Tax Act). The Tax Act revised the taxation of U.S. and multinational corporations which significantly reduced the statutory corporate U.S. federal income tax rate from 35% to 21%, imposed limitations on the ability of corporations to deduct interest expense and made taxation changes on U.S. multinational corporation’s foreign operations. The provisions of the Tax Act are complex and likely will be subject to regulatory and administrative guidance. The Tax Act includes a provision to tax global intangible low-taxed income (GILTI) of foreign subsidiaries and a base erosion anti-abuse tax (BEAT) measure that taxes certain payments between a U.S. corporation and its foreign subsidiaries. For the fiscal year ended June 30, 2021, we have $923,000 of GILTI income inclusion and used our net operating losses to offset our taxable income. For the fiscal year ended June 30, 2021, we did not incur any BEAT tax. We account for uncertain tax positions according to the provisions of ASC 740. ASC 740 contains a two-step approach for recognizing and measuring uncertain tax positions. Tax positions are evaluated for recognition by determining if the weight of available evidence indicates that it is probable that the position will be sustained on audit, including resolution of related appeals or litigation. Tax benefits are then measured as the largest amount which is more than 50% likely of being realized upon ultimate settlement. We consider many factors when evaluating and estimating tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes. As of June 30, 2021, we have completed a 382 study under Section 382 of the Internal Revenue Code through June 30, 2020, and have determined there was no loss of NOLs as a result of these changes. Utilization of the NOL or tax credit carryforwards to offset future taxable income and taxes, respectively, are subject to an annual limitation under the Internal Revenue Code of 1986 and similar state provisions, which is determined by first multiplying the value of the Company’s stock at the time of the ownership change by the applicable long-term, tax-exempt rate, and then could be subject to additional adjustments such as built in gain or built in loss, as required. Any limitation may result in expiration of all or a portion of its NOL and or tax credit carryforwards before utilization. Comprehensive Income We report comprehensive income and its components in accordance with ASC 220, Comprehensive Income . Under the accounting standards, comprehensive loss includes all changes in equity during a period except those resulting from investments by or distributions to owners. Total comprehensive income for each of the two years in the period ended June 30, 2021 is shown in the accompanying consolidated statements of comprehensive income. Accumulated other comprehensive loss presented in the accompanying consolidated balance sheets as of June 30, 2021 and 2020 consists of accumulated foreign currency translation adjustments. Net Income Per Common Share Basic net income per common share is computed using the weighted-average number of shares of common stock outstanding. In periods where net income is reported, the weighted average number of shares is increased by warrants and options in-the-money to calculate diluted net income per common share. The following table represents the calculation of basic and diluted net income per common share (in thousands, except per share data): Years Ended June 30, 2021 2020 Net income applicable to common stockholders $ 6,959 $ 7,208 Basic net income per common share $ 0.22 $ 0.24 Weighted average common shares used in computing basic net income per common share 31,007 30,620 Effect of dilutive common equivalents outstanding 1,590 1,336 Weighted average common shares used in computing diluted net income per common share 32,597 31,956 Diluted net income per common share $ 0.21 $ 0.23 Weighted average options to purchase 293,949 and 613,643 shares of common stock as of June 30, 2021 and 2020, respectively, were not included in the computation of diluted net income per common share due to their anti-dilutive effect. Such securities could have a dilutive effect in future periods. Segment Information We operate in one segment, the development, license, implementation, and support of our customer service infrastructure software solutions. Operating segments are identified as components of an enterprise for which discrete financial information is available and regularly reviewed by our chief operating decision-maker in order to make decisions about resources to be allocated to the segment and assess its performance. Our chief operating decision-makers under ASC 280, Segment Reporting , are our executive management team. Our chief operating decision-makers review financial information presented on a consolidated basis for purposes of making operating decisions and assessing financial performance. Information relating to our geographic areas for the fiscal years ended June 30, 2021 and 2020 is as follows (in thousands): Operating Total Income Long-Lived Revenue (Loss) Assets Year ended June 30, 2021: North America $ 54,380 $ 4,936 $ 350 Europe, Middle East, & Africa 23,907 8,496 85 Asia Pacific — (6,093) 270 $ 78,287 $ 7,339 $ 705 Year ended June 30, 2020: North America $ 44,813 $ 890 $ 401 Europe, Middle East, & Africa 27,916 11,944 90 Asia Pacific — (5,428) 222 $ 72,729 $ 7,406 $ 713 For the purposes of entity-wide geographic area disclosures, we define long-lived assets as hard assets that cannot be easily removed, such as property and equipment. Recent Accounting Pronouncements Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13), which requires measurement and recognition of expected credit losses for financial assets held at the reporting date based on internal information, external information, or a combination of both relating to past events, current conditions, and reasonable and supportable forecasts. ASU No. 2016-13 replaces the existing incurred loss impairment model with a forward-looking expected credit loss model, which will result in earlier recognition of credit losses. Subsequent to the issuance of ASU No. 2016-13, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instrument, ASU No. 2019-05, Financial Instruments - Credit Losses (Topic 326) Targeted Transition Relief, ASU No. 2016-13, ASU No. 2019-10 Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842), and ASU No. 2019-11 Codification Improvements to Topic 326, Financial Instruments-Credit Losses. The subsequent ASUs do not change the core principle of the guidance in ASU No. 2016-13. Instead, these amendments are intended to clarify and improve operability of certain topics included within ASU No. 2016-13. Additionally, ASU No. 2019-10 defers the effective date for the adoption of the new standard on credit losses for public filers that are considered small reporting companies (“SRC”) as defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, which will be fiscal year 2024 for the Company if it continues to be classified as a SRC. In February 2020, the FASB issued ASU 2020-02, which provides guidance regarding methodologies, documentation, and internal controls related to expected credit losses. The subsequent amendments will have the same effective date and transition requirements as ASU No. 2016-13. Early adoption is permitted. Topic 326 requires a modified retrospective approach by recording a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. While the Company is currently evaluating the impact of Topic 326, the Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements or the related disclosure. In December 2019, FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This update simplifies the accounting for income taxes. This update is effective for fiscal years beginning after December 15, 2020 (our fiscal year 2022). We are currently evaluating the impact of this update on our consolidated financial statements and related disclosures. Pronouncements Recently Adopted In August 2018, the Financial Accounting Standards Board (FASB) issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40). This update requires a customer in a cloud computing service arrangement to follow the internal-use software guidance to determine which implementation costs to recognize and defer as an asset. We adopted this guidance as of our first quarter of fiscal year 2021 with no impact on our consolidated financial statements. Revenue Recognition Revenue Recognition Policy Our revenue is comprised of two categories including subscription and professional services. Subscription includes SaaS revenue and legacy revenue. SaaS includes revenue from cloud delivery arrangements, term licenses and embedded OEM royalties and associated support. Legacy revenue is associated with license, maintenance, and support contracts on perpetual license arrangements that we no longer sell. Professional services includes consulting, implementation and training. Significant Judgment Applied in the Determination of Revenue Recognition We enter into contractual arrangements with customers that may include promises to transfer multiple services, such as subscription, support and professional services. With respect to our business, a performance obligation is a promise to transfer a service to a customer that is distinct. Significant judgment is required to determine whether services are distinct performance obligations that should be accounted for separately or combined as one unit of accounting. Additionally, significant judgment is required to determine the timing of revenue recognition. We allocate the transaction price to each performance obligation on a relative standalone selling price basis (SSP). The SSP is the price at which we would sell a promised service separately to one of our customers. Judgment is required to determine the SSP for each distinct performance obligation. We determine the SSP by considering our pricing objectives in relation to market demand. Consideration is placed based on our history of discounting prices, size and volume of transactions involved, customer demographics and geographic locations, price lists, contract prices and our market strategy. Determination of Revenue Recognition Under Topic 606, we recognize revenue upon the transfer of control of promised services to our customers in the amount that is commensurate with the consideration that we expect to receive in exchange for those services. If consideration includes a variable amount in the arrangement, such as service level credits or contingent fees, then we include an estimate of the amount that we expect to receive for the total transaction price. The amount of revenue that we recognize is based on (i) identifying the contract with a customer; (ii) identifying the performance obligations in the contract; (iii) determining the transaction price; (iv) allocating the transaction price to the performance obligations in the contract on a relative SSP basis; and (v) recognizing revenue when, or as, we satisfy each performance obligation in the contract typically through delivery or when control is transferred to the customer. Subscription Revenue The following customer arrangements are recognized ratably over the contract term as the performance obligations are delivered: · Cloud delivery arrangements; · Maintenance and support arrangements; and · Term license subscriptions which incorporate on-premise software licenses and substantial cloud functionality that are not distinct in the context of our arrangements as such are considered highly interrelated and represent a single combined performance obligation. For contracts involving distinct software licenses, the license performance obligation is satisfied at a point in time when control is transferred to the customer. We typically invoice our customers in advance upon execution of the contract or subsequent renewals with payment terms between 30 and 45 days. Invoiced amounts are recorded in accounts receivable, deferred revenue or revenue, depending if control transferred to our customers based on each arrangement. The Company has a royalty revenue agreement with a customer related to the Company’s embedded intellectual property. Under the terms of the agreement, the customer is to provide a |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Jun. 30, 2021 | |
Text Block [Abstract] | |
Balance Sheet Components | 2. BALANCE SHEET COMPONENTS Property and equipment, net consists of the following: As of June 30, 2021 2020 (in thousands) Computers and equipment $ 3,750 $ 3,324 Furniture and fixtures 1,029 940 Leasehold improvements 589 554 Total 5,368 4,818 Accumulated depreciation and amortization (4,663) (4,105) Property and equipment, net $ 705 $ 713 Depreciation and amortization expense was $428,000 and $304,000 for the fiscal years ended June 30, 2021 and 2020, respectively. Disposed fixed assets, which were substantially fully-depreciated, were $0 and $920,000 for the years ended June 30, 2021, and 2020, respectively. Accrued compensation consists of the following: As of June 30, 2021 2020 (in thousands) Accrued bonuses $ 3,601 $ 3,223 Accrued vacation 2,636 2,235 Payroll and other employee related costs 1,559 1,745 Accrued commissions 648 713 Accrued compensation $ 8,444 $ 7,916 Accrued liabilities consists of the following: As of June 30, 2021 2020 (in thousands) Customer advances $ 349 $ 471 Sales tax payable 796 672 VAT liability 2,190 848 Accrued other liabilities 1,017 1,432 Accrued liabilities $ 4,352 $ 3,423 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Jun. 30, 2021 | |
Revenue Recognition | |
Revenue Recognition | 3. REVENUE RECOGNITION Disaggregation of Revenue The following table presents our subscription and professional services revenue during the fiscal years ended June 30, 2021 and 2020, respectively: Fiscal Year Ended June 30, 2021 2020 (in thousands) Revenue: SaaS revenue $ 66,929 $ 56,793 Legacy revenue 5,442 9,336 Total subscription 72,371 66,129 Professional services 5,916 6,600 Total revenue $ 78,287 $ 72,729 The following table presents our revenue by geography. Revenue by geography is generally determined on the region of our contracting entity rather than the region of our customer. The relative proportion of our total revenues between each geographic region as presented in the table below was materially consistent across each of our operating segments’ revenues for the periods presented. Fiscal Year Ended June 30, 2021 2020 (in thousands) Revenue: North America $ 54,380 $ 44,813 EMEA 23,907 27,916 Total Revenue $ 78,287 $ 72,729 Contract Balances Contract assets, if any, consist of unbilled receivables for completed performance obligations which have not been invoiced, and for which we do not have an unconditional right to consideration. Contract liabilities consist of deferred revenue for which we have an obligation to transfer services to customers and have received consideration in advance or the amount is due from customers. Once the obligations are fulfilled, then deferred revenue is recognized to revenue in the respective period. There were no contract assets for the years ended June 30, 2021 and 2020. The following table presents the changes in contract liabilities (in thousands): Balance as of July 1, 2020 Additions Deductions Balance as of June 30, 2021 Contract liabilities: Deferred revenue 36,644 87,270 (77,703) 46,211 Deferred revenue, net of current portion 4,826 — (1,494) 3,332 With respect to deferred revenue balances as of June 30, 2020, $36.5 million was recognized to revenue during fiscal year ended June 30, 2021. Remaining Performance Obligations Remaining performance obligations represent contracted revenues that had not yet been recognized, and include deferred revenues, invoices that have been issued to customers but were uncollected and have not been recognized as revenues, and amounts that will be invoiced and recognized as revenues in future periods. The transaction price allocated to the remaining performance obligation is influenced by a variety of factors, including seasonality, timing of renewals, average contract terms and foreign currency rates. As of June 30, 2021, our remaining performance obligations were $65.4 million of which we expect to recognize $55.2 million and $10.2 million as revenue within one year and beyond one year, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2021 | |
Income Taxes | |
Income Taxes | 4. INCOME TAXES Income before income tax (benefit) provision consisted of the following (in thousands): Fiscal Year Ended June 30, 2021 2020 United States $ 5,024 $ 5,260 Foreign 1,769 2,726 Income before income tax (benefit) provision $ 6,793 $ 7,986 The following table reconciles the federal statutory tax rate to the effective tax rate of the income tax (benefit) provision: Fiscal Year Ended June 30, 2021 2020 Federal statutory income tax rate 21.0 % 21.0 % Current state taxes, net of federal benefit 2.1 3.3 Foreign rate differential (1.9) (0.6) Research and development credits (8.5) (0.6) Foreign withholding tax 0.5 1.2 Stock-based compensation (0.8) (0.3) Deferred return to provision (1.8) 0.7 Other items 0.3 0.5 Net change in valuation allowance (194.4) (71.5) Foreign income 2.9 8.5 Expiration of tax attributes 178.2 47.5 Effective tax rate (2.4) % 9.7 % The components of the income tax (benefit) provision are as follows (in thousands): Fiscal Year Ended June 30, 2021 2020 Current (benefit) provision: Foreign $ 31 $ 401 Federal — (12) State 107 128 Total current: 138 517 Deferred: Federal — 62 Foreign (304) 199 Total deferred: (304) 261 Income tax (benefit) provision $ (166) $ 778 As of June 30, 2021, we had federal and state net operating loss carryforwards of approximately $107.0 million and $14.3 million, respectively. The net operating loss carryforwards will expire at various dates beginning in fiscal year ending June 30, 2022, if not utilized. We also had federal research and development credit carryforwards of approximately $3.2 million as of June 30, 2021, which will expire at various dates beginning in fiscal year ending June 30, 2022, if not utilized. The California research and development credit carryforwards are approximately $5.7 million as of June 30, 2021 and have an indefinite carryover period. As of June 30, 2021, we have completed a 382 study under Section 382 of the Internal Revenue Code through June 30, 2020, and have determined there was no loss of NOLs as a result of these changes. Utilization of the NOL or tax credit carryforwards to offset future taxable income and taxes, respectively, are subject to an annual limitation under the Internal Revenue Code of 1986 and similar state provisions, which is determined by first multiplying the value of the Company’s stock at the time of the ownership change by the applicable long-term, tax-exempt rate, and then could be subject to additional adjustments such as built in gain or built in loss, as required. Any limitation may result in expiration of all or a portion of its NOL and or tax credit carryforwards before utilization. Deferred tax assets and liabilities reflect the net tax effects of net operating loss and credit carryforwards and of temporary differences between the carrying amounts of assets and liabilities for financial reporting and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities for federal, state and foreign income taxes are as follows (in thousands): As of June 30, 2021 2020 Deferred tax assets: Net operating loss carryforwards $ 23,418 $ 35,105 Research credits 7,728 7,525 Deferred revenue 1,220 2,483 Stock-based compensation 1,136 1,100 Accruals and reserves 2,799 2,898 Lease liability 228 542 Other 46 56 Gross deferred tax assets 36,575 49,709 Less valuation allowance (35,492) (48,700) Net deferred tax assets $ 1,083 $ 1,009 Gross deferred tax liabilities Right-of-use asset $ (207) $ (500) Fixed assets (38) (20) Gross deferred tax liabilities (245) (520) Total deferred tax assets, net * $ 838 $ 489 *included in other assets on consolidated balance sheet ASC 740, Income Taxes , provides for the recognition of deferred tax assets if realization of such assets is more likely than not. For the legacy eGain business in the United States, based upon the weight of available evidence, which includes our historical operating performance and the reported cumulative net losses in prior years, we have provided a full valuation allowance against our U.S. net deferred tax assets. With respect to our foreign operations, we expect to utilize the deferred tax assets and have not placed a valuation allowance against them. Our tax provision primarily relates to foreign activities as well as state income taxes. Our income tax rate differs from the statutory tax rates primarily due to the utilization of net operating loss carryforwards which had previously been valued against, change in valuation allowance, stock-based compensation, GILTI inclusion, research and development credits, and our foreign operations. The net valuation allowance decreased by $13.2 million and $5.7 million for the fiscal years ended June 30, 2021 and 2020, respectively. We have not provided for taxes on $18.7 million of undistributed earnings of our foreign subsidiaries as of June 30, 2021. It is our intention to reinvest such undistributed earnings indefinitely in our foreign subsidiaries. If we distribute these earnings, in the form of dividends or otherwise, we would be subject to withholding taxes payable to the foreign jurisdiction and potential state taxes. Uncertain Tax Positions The aggregate changes in the balance of our gross unrecognized tax benefits during fiscal years 2021 and 2020 were as follows (in thousands): Fiscal Year Ended June 30, 2021 2020 Beginning balance $ 1,691 $ 1,665 Increases in balances related to tax positions taken during current periods 71 26 Ending balance $ 1,762 $ 1,691 There is no amount of unrecognized tax benefit, if recognized currently, that would impact the Company’s effective tax rate as of June 30, 2021 and 2020, respectively. No accrued interest and penalties have been recognized in the tax provision related to unrecognized tax benefits. We do not anticipate the amount of existing unrecognized tax benefit to significantly increase or decrease during the next twelve months. Our policy is to record interest and penalties related to unrecognized tax benefits as income tax expense. We file income tax returns in the United States as well as various state and foreign jurisdictions. In these jurisdictions, tax years between 2001 and 2019 remain subject to examination by the appropriate governmental agencies due to tax loss carryovers from those years. The Company is not currently under audit with either the IRS, foreign, or any state or local jurisdictions, nor has it been notified of any other potential future income tax audit. The federal and California statute of limitations remains open for three and four years, respectively, from the date of utilization of any net operating loss or credits. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jun. 30, 2021 | |
Share Repurchase Program | |
Stockholders' Equity | 5. STOCKHOLDERS’ EQUITY Common Stock We have reserved shares of common stock for issuance as of June 30, 2021 as follows: Reserved Stock Options Stock options outstanding 2,735,512 Stock available for future grants or issuance: 2005 Stock Incentive Plan 944,527 2005 Management Stock Option Plan 68,649 2017 Employee Stock Purchase Plan 643,075 Total reserved shares of common stock for issuance 4,391,763 Preferred Stock We are authorized to issue 5,000,000 shares of preferred stock with a par value of $0.001 per share. As of June 30, 2021 and 2020, no shares of preferred stock are issued or outstanding. Our board of directors has the authority, without further action by our stockholders, to issue up to 5,000,000 shares of preferred stock in one or more series and to fix the rights, preferences, privileges and restrictions thereof. These rights, preferences and privileges could include dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences, sinking fund terms and the number of shares constituting any series or the designation of such series, any or all of which may be greater than the rights of the common stock. 2005 Management Stock Option Plan In May 2005, our board of directors adopted the 2005 Management Stock Option Plan (2005 Management Plan) which provides for the grant of non-statutory stock options to directors, officers and key employees of eGain and its subsidiaries. Our board extended the expiration date of the 2005 Management Plan to September 30, 2024. Options under the 2005 Management Plan are granted at a price not less than 100% of the fair market value of the common stock on the date of grant. Options granted under the 2005 Management Plan are subject to eGain’s right of repurchase, whose right shall lapse with respect to one-forty-eighth (1/48 th ) of the shares granted to a director, officer or key employee for each month of continuous service provided by such director, officer or key employee to eGain. The options granted under this plan are exercisable for up to ten years from the date of grant. The following table represents the activity under the 2005 Management Plan: Shares Weighted Available for Options Average Grant Outstanding Exercise Price Balance as of June 30, 2019 68,649 1,317,726 $ 3.56 Options Granted — — $ — Options Exercised — (39,209) $ 2.89 Options Forfeited / Expired — — $ — Balance as of June 30, 2020 68,649 1,278,517 $ 3.58 Options Granted — — $ — Options Exercised — (106,000) $ 4.30 Options Forfeited / Expired — — $ — Balance as of June 30, 2021 68,649 1,172,517 $ 3.51 2005 Stock Incentive Plan In March 2005, our board of directors adopted the 2005 Stock Incentive Plan which provides for the grant of stock options to eGain’s employees, officers, directors and consultants. Our board extended the expiration date of the 2005 Stock Incentive Plan to September 30, 2024 and made certain other changes. Options granted under the 2005 Stock Incentive Plan are non-qualified stock options. Non-qualified stock options may be granted to employees with exercise prices of no less than the fair value of the common stock on the date of grant. The options generally vest ratably over a period of four years and expire no later than ten years from the date of grant. The following table represents the activity under the 2005 Stock Incentive Plan: Shares Weighted Available for Options Average Grant Outstanding Exercise Price Balance as of June 30, 2019 347,703 1,503,607 $ 4.67 Shares Added 1,000,000 — $ — Options Granted (350,125) 350,125 $ 8.29 Options Exercised — (170,475) $ 2.52 Options Forfeited / Expired 75,808 (75,808) $ 6.40 Balance as of June 30, 2020 1,073,386 1,607,449 $ 5.60 Options Granted (207,700) 207,700 $ 12.07 Options Exercised — (173,313) $ 4.41 Options Forfeited / Expired 78,841 (78,841) $ 8.69 Balance as of June 30, 2021 944,527 1,562,995 $ 6.44 No shares were granted to consultants during the fiscal year ended June 30, 2021. The following table summarizes information about stock options outstanding and exercisable under all stock option plans as of June 30, 2021: Options Outstanding Options Exercisable Weighted Range of Average Weighted Weighted Exercise Number of Remaining Average Number of Average Prices Shares Contractual Life Exercise Price Shares Exercise Price $1.5-$2.13 142,542 2.61 $ 1.78 137,505 $ 1.78 $2.5-$2.5 1,196,559 5.24 $ 2.50 1,123,861 $ 2.50 $3.4-$5.28 385,649 3.30 $ 4.38 365,503 $ 4.43 $5.31-$7.2 275,392 4.38 $ 6.34 244,877 $ 6.31 $7.47-$8.2 274,638 7.57 $ 7.90 135,111 $ 7.90 $8.23-$12.15 326,482 8.46 $ 10.28 106,020 $ 10.50 $12.25-$13.75 90,500 7.53 $ 13.41 52,213 $ 13.70 $14.275-$14.275 12,200 9.21 $ 14.28 — $ — $14.4-$14.4 3,550 7.12 $ 14.40 2,514 $ 14.40 $19.11-$19.11 28,000 9.29 $ 19.11 — $ — $1.5-$19.11 2,735,512 5.50 $ 5.18 2,167,604 $ 4.22 The summary of options vested and exercisable as of June 30, 2021 comprised: Weighted Average Weighted Aggregate Remaining Number of Average Intrinsic Contractual Shares Exercise Price Value Term Options outstanding 2,735,512 $ 5.18 $ 17,693,123 5.50 Fully vested and expected to vest options 2,667,951 $ 5.07 $ 17,536,993 5.42 Options exercisable 2,167,604 $ 4.22 $ 15,880,275 4.84 The aggregate intrinsic value in the preceding table represents the total intrinsic value based on stock options with a weighted average exercise price less than our closing stock price of $11.48 as of June 30, 2021 that would have been received by the option holders, had they exercised their options on June 30, 2021. The total intrinsic value of stock options exercised was $2.0 million and $1.3 million during fiscal years 2021 and 2020, respectively. Stock-Based Compensation We account for stock-based compensation in accordance with ASC 718, Compensation—Stock Compensation . Under the fair value recognition provisions of ASC 718, stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is generally the vesting period. Stock-based compensation expense consists of expenses for stock options and our employee stock purchase plan (ESPP). 2017 Employee Stock Purchase Plan In October 2017, our board of directors adopted the 2017 Employee Stock Purchase Plan (ESPP) which provided eligible employees the option purchase the Company’s common stock through payroll deductions at a price equal to 85% of the lower of the fair market value at the entry date of the applicable offering period or at the end of each applicable purchasing period. The offering period, meaning a period with respect to which the right to purchase shares of our common stock may be granted under the ESPP, will not exceed twenty-seven months and consist of a series of six-month purchase periods. Eligible employees may join the ESPP at the beginning of any six-month purchase period. Under the terms of the ESPP, employees can choose to have between 1% and 15% of their base earnings withheld to purchase the Company’s common stock. Determining the fair value of the stock-based awards at the grant date requires significant judgment and the use of estimates, particularly surrounding Black-Scholes valuation assumptions such as stock price volatility and expected option term. The table below summarizes the effect of stock-based compensation (in thousands): Fiscal Year Ended June 30, 2021 2020 Non-cash stock-based compensation expense $ (1,700) $ (1,861) Income tax expense (51) (56) Net income effect $ (1,751) $ (1,917) The Company recognized $51,000 and $56,000 of tax expense related to stock-based compensation expense for eGain UK and Exony for the fiscal year ended June 30, 2021 and 2020, respectively. There is no income tax effect that has been recognized relating to the stock-based compensation expense in the US due to full valuation allowance. Total stock-based compensation includes expense related to non-employee awards of $47,000 and $120,000 during the fiscal years ended June 30, 2021 and 2020, respectively. Total stock-based compensation includes expense related to the ESPP of $473,000 and $294,000 during the fiscal year ended June 30, 2021 and 2020, respectively. We utilized the Black-Scholes valuation model for estimating the fair value of the stock-based compensation of options granted. All shares of our common stock issued pursuant to our stock option plans are only issued out of an authorized reserve of shares of common stock, which were previously registered with the Securities and Exchange Commission on a registration statement on Form S-8. During the fiscal years ended June 30, 2021 and 2020, there were 207,700 and 350,125 options granted, respectively, with a weighted average grant date fair value of $6.60 and $4.50, per share, respectively. We used the following assumptions: Fiscal Year Ended June 30, 2021 2020 Dividend yield — — Expected volatility 72 % 70 % Average risk-free interest rate 0.50 % 1.37 % Expected life (in years) 4.35 4.33 The fair value of the ESPP stock purchase right is estimated on the date of grant using the following weighted-average assumptions: Fiscal Year Ended June 30, 2021 2020 Expected term (in years) Volatility % % Expected dividend — — Risk-free interest rate % % Fair Value of grants per share $ $ During the fiscal year ended June 30, 2021, employees were granted the right to purchase an aggregate of 152,092 shares under the ESPP, and compensation expense related to those purchase rights for the fiscal year ended June 30, 2021 was $473,000. During the fiscal year ended June 30, 2021, 130,408 shares were purchased and 643,075 shares remain available to be purchased pursuant to the 2017 ESPP. As of June 30, 2021 unrecognized compensation expense related to purchase rights that will be recognized over a weighted average period of 0.42 years was $231,000. The dividend yield of zero is based on the fact that we have never paid cash dividends and have no present intention to pay cash dividends. We determined the appropriate measure of expected volatility by reviewing historic volatility in the share price of our common stock, as adjusted for certain events that management deemed to be non-recurring and non-indicative of future events. The risk-free interest rate is derived from the average U.S. Treasury Strips rate. We base our estimate of expected life of a stock option on the historical exercise behavior, and cancellations of all past option grants made by the Company during the time period which its common stock has been publicly traded, the contractual term of the option, the vesting period and the expected remaining term of the outstanding options. In accordance with Accounting Standards Updates (ASU) 2016-09, Compensation—Stock Compensation: Improvements to Employee Share-Based Accounting , we elected to continue to estimate forfeitures in the calculation of stock-based compensation expense. The following table summarizes stock-based compensation expense relating to stock options for the year ended June 30, 2021 and 2020, respectively (in thousands): Fiscal Year Ended June 30, 2021 2020 Cost of revenue $ $ Research and development Sales and marketing General and administrative Total $ 1,227 $ 1,567 Total unamortized compensation cost, net of forfeitures, for all options granted but not yet vested as of June 30, 2021 was $1.1 million which is expected to be recognized over the weighted average period of 1.23 years. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Jun. 30, 2021 | |
Intangible Assets | |
Intangible Assets | 6. INTANGIBLE ASSETS Intangible assets are amortized over the estimated lives, as follows (in thousands, except expected life): Gross Consolidated Carrying Accumulated Net Balance Statements of Operations Intangible Asset Amount Amortization June 30, 2021 Life Category Customer relationships - maintenance contracts 1,610 (1,610) — 6 Cost of recurring $ 1,610 $ (1,610) $ — Gross Consolidated Carrying Accumulated Net Balance Statements of Operations Intangible Asset Amount Amortization June 30, 2020 Life Category Customer relationships - maintenance contracts 1,610 (1,584) 26 6 Cost of recurring $ 1,610 $ (1,584) $ 26 Amortization expense related to the above intangible assets for fiscal year ended June 30, 2021 and 2020 was $26,000 and $268,000, respectively. |
Leases
Leases | 12 Months Ended |
Jun. 30, 2021 | |
Leases | |
Leases | 7. LEASES We lease our office facilities under non-cancelable operating leases that expire on various dates through fiscal year 2025. Additionally, we are the sublessor for certain office space. All of our office leases are classified as operating leases with lease expense recognized on a straight-line basis over the lease term. Lease right-of-use assets and liabilities are recognized at the commencement date at the present value of lease payments over the lease term. As our leases do not provide an implicit rate, we use our incremental borrowing rate based on information available at the commencement date in determining the present value of lease payments. The following table presents information about the weighted average lease term and discount rate as follows: As of June 30, 2021 Weighted average remaining lease term (in years) 1.78 Weighted average discount rate 4.75 % The following table presents information about leases on our consolidated statement of operations (in thousands): Fiscal Year Ended June 30, 2021 Operating lease expense $ 1,770 Short-term lease expense 4 Sublease income (618) The following table presents supplemental cash flow information about our leases (in thousands): Fiscal Year Ended June 30, 2021 Operating cash outflows from operating leases $ 1,948 Right-of-use assets obtained in exchange for new operating lease liabilities — As of June 30, 2021, remaining maturities of lease liabilities are as follows (in thousands): Fiscal Period: Fiscal year 2022 $ 1,530 Fiscal year 2023 574 Fiscal year 2024 249 Total minimum lease payments 2,353 Less: Imputed interest (90) Total $ 2,263 |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Jun. 30, 2021 | |
Commitments And Contingencies | |
Commitments And Contingencies | 8. COMMITMENTS AND CONTINGENCIES Employee benefit plans Defined Contribution Plans We sponsor an employee savings and retirement plan, the 401(k) Plan, as allowed under Section 401(k) of the Internal Revenue Code. The 401(k) Plan is available to all domestic employees who meet minimum age and service requirements, and provides employees with tax deferred salary deductions and alternative investment options. Employees may contribute up to 60% of their salary, subject to certain limitations. We, at the discretion of our board of directors, may contribute to the 401(k) Plan. In fiscal years 2021 and 2020, we contributed approximately $569,000 and $463,000 to the 401(k) Plan, respectively. We also have a defined contribution plan related to our foreign subsidiaries. Amounts expensed under this plan were $534,000 and $466,000, for the fiscal years ended June 30, 2021 and 2020, respectively. Gratuity Plan—India In accordance with Gratuity Act of 1972, we sponsor a defined benefit plan (Gratuity Plan) for all of our India employees. The Gratuity Plan is required by local law, which provides a lump sum payment to vested employees upon retirement or termination of employment in an amount based on each employee’s salary and duration of employment with the Company. The Gratuity Plan benefit cost for the year is calculated on an actuarial basis. Current service costs and actuarial gains or losses, or prior service cost, for the Gratuity Plan were insignificant for the fiscal years 2021 and 2020. Warranty We generally warrant that the program portion of our software will perform substantially in accordance with certain specifications for a period up to one year from the date of delivery. Our liability for a breach of this warranty is either a return of the license fee or providing a fix, patch, work-around or replacement of the software. We also provide standard warranties against and indemnification for the potential infringement of third party intellectual property rights to our customers relating to the use of our products, as well as indemnification agreements with certain officers and employees under which we may be required to indemnify such persons for liabilities arising out of their duties to us. The terms of such obligations vary. Generally, the maximum obligation is the amount permitted by law. Historically, costs related to these warranties have not been significant. However, we cannot guarantee that a warranty reserve will not become necessary in the future. Indemnification We have agreed to indemnify our directors and executive officers for costs associated with any fees, expenses, judgments, fines and settlement amounts incurred by any of these persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by us, arising out of that person’s services as our director or officer or that person’s services provided to any other company or enterprise at our request. Transfer Pricing We have received transfer-pricing assessments from tax authorities with regard to transfer pricing issues for certain fiscal years, which we have appealed with the appropriate authority. We review the status of each significant matter and assess its potential financial exposure. We believe that such assessments are without merit and would not have a significant impact on our consolidated financial statements. Contractual Obligations and Commitments Contractual agreements with third parties consist of software licenses, maintenance and support for our operations. As of June 30, 2021, we have paid all non-cancelable contractual agreements related to these software licenses. We have no significant commitments related to co-location services for cloud operations as of June 30, 2021 and 2020. |
Litigation
Litigation | 12 Months Ended |
Jun. 30, 2021 | |
Text Block [Abstract] | |
LITIGATION | 9. LITIGATION In the ordinary course of business, we are involved in various legal proceedings and claims related to alleged infringement of third-party patents and other intellectual property rights, commercial, corporate and securities, labor and employment, wage and hour, and other claims that are not expected to have a material impact. We have been, and may in the future be, put on notice and/or sued by third parties for alleged infringement of their proprietary rights, including patent infringement. We evaluate all claims and lawsuits with respect to their potential merits, our potential defenses and counterclaims, settlement or litigation potential and the expected effect on us. Our technologies may be subject to injunction if they are found to infringe the rights of a third party. In addition, our agreements require us to indemnify our customers for third-party intellectual property infringement claims, which could increase the cost to us of an adverse ruling on such a claim. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Jun. 30, 2021 | |
Fair Value Measurement | |
Fair Value Measurement | 10. FAIR VALUE MEASUREMENT ASC 820, Fair Value Measurement and Disclosures, defines fair value, establishes a framework for measuring fair value of assets and liabilities, and expands disclosures about fair value measurements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the assets or liabilities in an orderly transaction between market participants on the measurement date. Subsequent changes in fair value of these financial assets and liabilities are recognized in earnings or other comprehensive income when they occur. ASC 820 applies whenever other statements require or permit assets or liabilities to be measured at fair value. ASC 820 includes a fair value hierarchy, of which the first two are considered observable and the last unobservable, that is intended to increase the consistency and comparability in fair value measurements and related disclosures. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon their own market assumptions. The fair value hierarchy consists of the following three levels: Level 1 – instrument valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets. Level 2 – instrument valuations are obtained from readily-available pricing sources for comparable instruments. Level 3 – instrument valuations are obtained without observable market value and require a high level of judgment to determine the fair value. Our money market funds are measured at fair value on a recurring basis based on quoted market prices in active markets and are classified as level 1 within the fair value hierarchy. As of June 30, 2021 and 2020, cash equivalents classified as level 1 instruments were measured at $55.4 million and $41.8 million, respectively. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Jun. 30, 2021 | |
Text Block [Abstract] | |
Quarterly Financial Data | 11. QUARTERLY FINANCIAL DATA (Unaudited) Following is a summary of quarterly operating results and share data for the years ended June 30, 2021 and 2020, respectively: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Fiscal Year (in thousands, except per share data) Fiscal Year 2021 Revenue $ 19,063 $ 19,233 $ 19,743 $ 20,248 $ 78,287 Gross profit $ 14,432 $ 14,522 $ 14,897 $ 15,169 $ 59,020 Income from operations $ 2,352 $ 1,896 $ 1,577 $ 1,514 $ 7,339 Net income $ 2,044 $ 1,606 $ 1,261 $ 2,048 $ 6,959 Basic net income per share $ 0.06 $ 0.05 $ 0.04 $ 0.07 $ 0.22 Diluted net income per share $ 0.06 $ 0.05 $ 0.04 $ 0.06 $ 0.21 Fiscal Year 2020 Revenue $ 17,190 $ 18,155 $ 18,354 $ 19,030 $ 72,729 Gross profit $ 11,875 $ 12,911 $ 12,854 $ 14,007 $ 51,648 Income from operations $ 1,095 $ 2,002 $ 1,757 $ 2,553 $ 7,406 Net income $ 1,217 $ 1,973 $ 1,867 $ 2,151 $ 7,208 Basic net income per share $ 0.04 $ 0.06 $ 0.06 $ 0.07 $ 0.24 Diluted net income per share $ 0.04 $ 0.06 $ 0.06 $ 0.07 $ 0.23 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 30, 2021 | |
Schedule II - Valuation and Qualifying Accounts | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS Years Ended June 30, 2021 and 2020 (in thousands) Amounts Balance at Additions Written Off, Beginning of Charged to Net of Balance at Period Expense Recoveries End of Period Allowance for Doubtful Accounts: Year ended June 30, 2021 $ 384 $ 400 $ (350) $ 434 Year ended June 30, 2020 $ 320 $ 317 $ (253) $ 384 |
Summary of Business and Signi_2
Summary of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2021 | |
Summary of Business and Significant Accounting Policies | |
Organization, Nature of Business and Principles of Consolidation | Organization and Nature of Business eGain Corporation (“eGain”, the “Company”, “our”, “we” or “us”) automates customer engagement with an innovative Software as a service (SaaS) platform, powered by deep digital, Artificial intelligence (AI), and knowledge capabilities. We are headquartered in the United States. We also operate in United Kingdom and India. We sell mostly to large enterprises across financial services, telecommunications, retail, government, healthcare, and utilities. With our mantra of AX + BX + CX = DX™ , we guide clients to effortless digital experience (DX) by holistically optimizing agent experience (AX), business experience (BX) and customer experience (CX). More than one hundred eighty leading brands use eGain cloud software to improve customer satisfaction, empower agents, reduce service cost and boost sales . Principles of Consolidation The consolidated financial statements include the accounts of eGain and our wholly-owned subsidiaries, eGain Communications Ltd., Exony Limited (Exony), eGain Communications Pvt. Ltd., eGain Communications (SA), eGain France S.A.R.L, Netherlands (eGain Communications B.V.) and eGain Deutschland GmbH. All significant intercompany balances and transactions have been eliminated. |
Business Combinations | Business Combinations Business combinations are accounted for at fair value under the purchase method of accounting. Acquisition costs are expensed as incurred and recorded in general and administrative expenses and changes in deferred tax asset valuation allowances and income tax uncertainties after the acquisition date affect income tax expense. The accounting for business combinations requires estimates and judgment as to expectations for future cash flows of the acquired business, and the allocation of those cash flows to identifiable intangible assets, in determining the estimated fair value for assets acquired and liabilities assumed. The fair values assigned to tangible and intangible assets acquired and liabilities assumed are based on management’s estimates and assumptions, as well as other information compiled by management, including valuations that utilize customary valuation procedures and techniques. If the actual results differ from the estimates and judgments used in these estimates, the amounts recorded in the consolidated financial statements could result in a possible impairment of the intangible assets and goodwill, or require acceleration of the amortization expense of finite-lived intangible assets. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. The estimates are based upon information available as of the date of the consolidated financial statements. Actual results could differ from those estimates. We evaluate our significant estimates, including those related to revenue recognition, provision for doubtful accounts, valuation of stock-based compensation, valuation of long-lived assets, valuation of deferred tax assets, and litigation, among others. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. We refer to accounting estimates of this type as “critical accounting estimates.” |
Foreign Currency | Foreign Currency The functional currency of each of our international subsidiaries is the local currency of the country in which it operates. Assets and liabilities of our foreign subsidiaries are translated at month-end exchange rates, and revenue and expenses are translated at the average monthly exchange rates. The resulting cumulative translation adjustments are recorded as a component of accumulated other comprehensive income. Foreign currency transaction gains and losses are included in “other (expense) income, net” in the consolidated statements of operations, and resulted in a gain of $570,000 and a loss of $172,000, in fiscal years ended June 30, 2021 and 2020, respectively. |
Cash and Cash Equivalents, Restricted Cash and Investments | Cash and Cash Equivalents, Restricted Cash and Investments We consider all highly liquid investments with an original purchase to maturity date of three months or less to be cash equivalents. Time deposits held for investments that are not debt securities are included in short-term investments in the consolidated balance sheets. Investments in time deposits with original maturities of more than three months but remaining maturities of less than one year are considered short-term investments. Investments held with the intent to reinvest or hold for longer than a year, or with remaining maturities of one year or more, are considered long-term investments. As of June 30, 2021 and 2020 we did not have any short-term or long-term investments. Cash earmarked for a specific purpose and therefore not available for immediate and general use by the Company is considered restricted cash. Expected usage of restricted cash within one year is classified as a current asset; expected usage more than a year is considered a non-current asset. As of June 30, 2021 and 2020, our restricted cash was nominal and expected to be used within one year. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Our financial instruments consist of cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities. We do not have any derivative financial instruments. We believe the reported carrying amounts of these financial instruments approximate fair value, based upon their short-term nature and comparable market information available at the respective balance sheet dates. |
Concentration of Credit Risk and Significant Customers | Concentration of Credit Risk Financial instruments that subject us to concentrations of credit risk consist principally of cash and cash equivalents and trade accounts receivable. Cash and cash equivalents are deposited with high credit quality institutions. We are exposed to credit risk in the event of default by these institutions to the extent of the amount recorded on the balance sheet. We invest excess cash primarily in money market funds, which are highly liquid securities that bear minimal risk. In addition, we have investment policies and procedures that are reviewed periodically to minimize credit risk. Our cash, cash equivalents and restricted cash were $63.2 million as of June 30, 2021 and exceeded the FDIC (Federal Deposit Insurance Corporation) limits. Our customer base extends across many different industries and geographic regions. Revenue is allocated to individual countries and geographic region by customer, based on where the product is shipped to and location of services performed. Cisco Systems, Inc. accounted for 21% and 18% of total revenue and BT PLC accounted for 13% and 10% of total revenue in fiscal years 2021 and 2020, respectively. We perform ongoing credit evaluations of our customers with outstanding receivables and generally do not require collateral. In addition, we established an allowance for doubtful accounts based upon factors surrounding the credit risk of customers, historical trends and other information. Three partners and customers accounted for 30%, 17%, and 16% of accounts receivable as of June 30, 2021, respectively. Two partners and customers accounted for 23% and 18% of accounts receivable as of June 30, 2020. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts We extend unsecured credit to our customers on a regular basis. Our accounts receivable are derived from revenue earned from customers and are not interest bearing. We also maintain an allowance for doubtful accounts to reserve for potential uncollectible trade receivables. We review our trade receivables by aging category to identify specific customers with known disputes or collectibility issues. We exercise judgment when determining the adequacy of these reserves as we evaluate historical bad debt trends, general economic conditions in the U.S. and internationally, and changes in customer financial conditions. If we made different judgments or utilized different estimates, material differences may result in additional reserves for trade receivables, which would be reflected by charges in general and administrative expenses for any period presented. We write off a receivable after all collection efforts have been exhausted and the amount is deemed uncollectible. In certain Company contracts, contractual billings do not coincide with revenue recognized on the contract. Unbilled accounts receivables are recorded when revenue recognized on the contract exceeds billings, pursuant to contract provisions, and become billable upon certain criteria being met. Unbilled accounts receivables, for which the Company has the unconditional right to consideration, totaled $719,000 and $1.4 million as of June 30, 2021 and 2020, respectively, and are included in the accounts receivable balance. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net, is stated at cost, net of accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful life of the respective assets, which typically is between three or five years. Leasehold improvements and leased equipment are depreciated on a straight-line basis over the shorter of the lease term or useful life of the asset, which is typically three to five years. |
Goodwill and Other Intangible Assets, Net | Goodwill and Other Intangible Assets, Net We review goodwill annually for impairment or sooner whenever events or changes in circumstances indicate that it may be impaired. These events or circumstances could include a significant change in the business climate, legal factors, operating performance indicators, competition, or sale or disposition of a significant portion of a reporting unit. In addition, we evaluate purchased intangible assets to determine that all such assets have determinable lives. We operate under a single reporting unit and accordingly, all of our goodwill is associated with the entire company. We had no impairment for fiscal years ended June 30, 2021 and 2020. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We review long-lived assets for impairment, including property and equipment, whenever events or changes in business circumstances indicate that the carrying amounts of the assets may not be fully recoverable. An impairment loss is recognized when estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition is less than its carrying amount. During fiscal years 2021 and 2020, we did not have any such impairment losses. |
Cost Capitalized to Obtain Revenue Contracts, Net | Cost Capitalized to Obtain Revenue Contracts, Net Under Topic 606, we capitalize incremental costs of obtaining non-cancelable subscription and support revenue contracts. The capitalized amounts consist primarily of sales commissions paid to our direct sales force. Capitalized amounts also include (i) amounts paid to employees other than the direct sales force who earn incentive payouts under annual compensation plans that are tied to the value of contracts acquired and (ii) the associated payroll taxes and fringe benefit costs associated with the payments to our employees. Costs capitalized related to new revenue contracts are generally deferred and amortized on a straight-line basis over a period of benefit that we estimate to be five years. We determine the period of benefit by taking into consideration the historical and expected durations of our customer contracts, the expected useful lives of our technologies, and other factors. Commissions for renewal contracts relating to our cloud-based arrangements are expensed when incurred, as we do not consider renewal contracts to be commensurate with initial customer contracts. Historically, any commission associated with renewals have been immaterial. Amortization of costs to obtain revenue contracts is included as a component of sales and marketing expenses in our consolidated statements of operations. The Company does not adjust transaction price for the effects of a significant financing component when the period between the transfers of the promised good or service to the customer and payment for that good or service by the customer is expected to be one year or less. The Company assessed each of its revenue contracts in order to determine whether a significant financing component exists, and determined its contracts did not include a significant financing component for the years ended June 30, 2021 and 2020. During the fiscal year ended June 30, 2021 and 2020, we capitalized $1.5 million and $1.8 million of costs to obtain revenue contracts, respectively, and amortized $1.2 million and $842,000 to sales and marketing expense, respectively. Capitalized costs to obtain revenue contracts, net were $3.9 million and $3.4 million as of June 30, 2021 and June 30, 2020, respectively. |
Leases | Leases Lease agreements are evaluated to determine whether an arrangement is or contains a lease in accordance with ASC 842, Leases . Operating leases are included in operating lease right-of-use (ROU) assets, current operating lease liabilities, and noncurrent operating lease liabilities in the consolidated financial statements. ROU assets represent the Company’s right to use leased assets over the agreed upon term. Lease liabilities represent the Company’s contractual obligation to make lease payments over the lease term. For operating leases, ROU assets and lease liabilities are recognized at the commencement date of the lease. The lease liability is measured as the present value of the lease payments over the lease term, using the rate implicit in the lease if readily determinable. If the rate implicit in the lease cannot be readily determined, the Company uses its incremental borrowing rate at lease commencement. The operating lease right-of-use assets are calculated as the present value of the remaining lease payments plus unamortized initial direct costs and any prepayments, less unamortized lease incentives received. Operating leases typically include non-lease components such as common-area maintenance costs. We have elected to include non-lease components with lease payments for the purpose of calculating lease right-of-use assets and liabilities, to the extent that they are fixed. Non-lease component payments that are not fixed are expensed as incurred as variable lease payments. Lease terms may include renewal or extension options to the extent they are reasonably certain to be exercised. The assessment of whether renewal or extension options are reasonably certain to be exercised is made at lease commencement. Factors considered in determining whether an option is reasonably certain of exercise include, but are not limited to, the value of any leasehold improvements, the value of renewal rates compared to market rates, and the presence of factors that would cause a significant economic penalty to the Company if the option were not exercised. Lease expense is recognized on a straight-line basis over the lease term. The Company has elected not to recognize right-of-use assets and obligations for leases with an initial term of twelve months or less, and has applied a capitalization threshold to recognize a lease on the balance sheet. The expense associated with short-term leases and leases that do not meet the Company’s capitalization threshold are recorded to lease expense in the period it is incurred. |
Software Development Costs | Software Development Costs We account for software development costs in accordance with ASC 985, Software , for costs of the software to be sold, leased or marketed, whereby costs for the development of new software products and substantial enhancements to existing software products are included in research and development expense as incurred until technological feasibility has been established, at which time any additional costs are capitalized. Technological feasibility is established upon completion of a working model. To date, software development costs incurred in the period between achieving technological feasibility and general availability of software have not been material and have been charged to operations as incurred. |
Advertising Costs | Advertising Costs We expense advertising costs as incurred. Total advertising expenses for the fiscal years ended June 30, 2021 and 2020 were $190,000 and $221,000, respectively. |
Stock-Based Compensation | Stock-Based Compensation We account for stock-based compensation in accordance with ASC 718, Compensation—Stock Compensation . Determining the fair value of the stock-based awards at the grant date requires significant judgment and the use of estimates, particularly surrounding Black-Scholes valuation assumptions such as stock price volatility and expected option term. Stock-based compensation expense for employee and non-employee awards is recognized as expense over the requisite service period, which is generally in line with the vesting period. |
Income Taxes | Income Taxes Income taxes are accounted for using the asset and liability method in accordance with ASC 740, Income Taxes. Under this method, deferred tax liabilities and assets are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. For the legacy eGain business in the United States, based upon the weight of available evidence, which includes our historical operating performance, our future investment plans, and the uncertainty in the current market environment due to COVID-19, we have provided a full valuation allowance against our net deferred tax assets. For the legacy eGain business in the United Kingdom, based on the positive evidence, the Company has determined it would be able to utilize the deferred tax assets and does not have a valuation allowance against the deferred tax assets. The remaining eGain foreign operations as well as Exony’s business have historically been profitable and we believe it is more likely than not that those assets will be realized. Our tax provision primarily relates to foreign activities as well as state income taxes. Our income tax rate differs from the statutory tax rates primarily due to the utilization of net operating loss carry-forwards which had previously been valued against as well as our foreign operations. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (Tax Act). The Tax Act revised the taxation of U.S. and multinational corporations which significantly reduced the statutory corporate U.S. federal income tax rate from 35% to 21%, imposed limitations on the ability of corporations to deduct interest expense and made taxation changes on U.S. multinational corporation’s foreign operations. The provisions of the Tax Act are complex and likely will be subject to regulatory and administrative guidance. The Tax Act includes a provision to tax global intangible low-taxed income (GILTI) of foreign subsidiaries and a base erosion anti-abuse tax (BEAT) measure that taxes certain payments between a U.S. corporation and its foreign subsidiaries. For the fiscal year ended June 30, 2021, we have $923,000 of GILTI income inclusion and used our net operating losses to offset our taxable income. For the fiscal year ended June 30, 2021, we did not incur any BEAT tax. We account for uncertain tax positions according to the provisions of ASC 740. ASC 740 contains a two-step approach for recognizing and measuring uncertain tax positions. Tax positions are evaluated for recognition by determining if the weight of available evidence indicates that it is probable that the position will be sustained on audit, including resolution of related appeals or litigation. Tax benefits are then measured as the largest amount which is more than 50% likely of being realized upon ultimate settlement. We consider many factors when evaluating and estimating tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes. As of June 30, 2021, we have completed a 382 study under Section 382 of the Internal Revenue Code through June 30, 2020, and have determined there was no loss of NOLs as a result of these changes. Utilization of the NOL or tax credit carryforwards to offset future taxable income and taxes, respectively, are subject to an annual limitation under the Internal Revenue Code of 1986 and similar state provisions, which is determined by first multiplying the value of the Company’s stock at the time of the ownership change by the applicable long-term, tax-exempt rate, and then could be subject to additional adjustments such as built in gain or built in loss, as required. Any limitation may result in expiration of all or a portion of its NOL and or tax credit carryforwards before utilization. |
Comprehensive Income (Loss) | Comprehensive Income We report comprehensive income and its components in accordance with ASC 220, Comprehensive Income . Under the accounting standards, comprehensive loss includes all changes in equity during a period except those resulting from investments by or distributions to owners. Total comprehensive income for each of the two years in the period ended June 30, 2021 is shown in the accompanying consolidated statements of comprehensive income. Accumulated other comprehensive loss presented in the accompanying consolidated balance sheets as of June 30, 2021 and 2020 consists of accumulated foreign currency translation adjustments. |
Net Income Per Common Share | Net Income Per Common Share Basic net income per common share is computed using the weighted-average number of shares of common stock outstanding. In periods where net income is reported, the weighted average number of shares is increased by warrants and options in-the-money to calculate diluted net income per common share. The following table represents the calculation of basic and diluted net income per common share (in thousands, except per share data): Years Ended June 30, 2021 2020 Net income applicable to common stockholders $ 6,959 $ 7,208 Basic net income per common share $ 0.22 $ 0.24 Weighted average common shares used in computing basic net income per common share 31,007 30,620 Effect of dilutive common equivalents outstanding 1,590 1,336 Weighted average common shares used in computing diluted net income per common share 32,597 31,956 Diluted net income per common share $ 0.21 $ 0.23 Weighted average options to purchase 293,949 and 613,643 shares of common stock as of June 30, 2021 and 2020, respectively, were not included in the computation of diluted net income per common share due to their anti-dilutive effect. Such securities could have a dilutive effect in future periods. |
Segment Information | Segment Information We operate in one segment, the development, license, implementation, and support of our customer service infrastructure software solutions. Operating segments are identified as components of an enterprise for which discrete financial information is available and regularly reviewed by our chief operating decision-maker in order to make decisions about resources to be allocated to the segment and assess its performance. Our chief operating decision-makers under ASC 280, Segment Reporting , are our executive management team. Our chief operating decision-makers review financial information presented on a consolidated basis for purposes of making operating decisions and assessing financial performance. Information relating to our geographic areas for the fiscal years ended June 30, 2021 and 2020 is as follows (in thousands): Operating Total Income Long-Lived Revenue (Loss) Assets Year ended June 30, 2021: North America $ 54,380 $ 4,936 $ 350 Europe, Middle East, & Africa 23,907 8,496 85 Asia Pacific — (6,093) 270 $ 78,287 $ 7,339 $ 705 Year ended June 30, 2020: North America $ 44,813 $ 890 $ 401 Europe, Middle East, & Africa 27,916 11,944 90 Asia Pacific — (5,428) 222 $ 72,729 $ 7,406 $ 713 For the purposes of entity-wide geographic area disclosures, we define long-lived assets as hard assets that cannot be easily removed, such as property and equipment. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13), which requires measurement and recognition of expected credit losses for financial assets held at the reporting date based on internal information, external information, or a combination of both relating to past events, current conditions, and reasonable and supportable forecasts. ASU No. 2016-13 replaces the existing incurred loss impairment model with a forward-looking expected credit loss model, which will result in earlier recognition of credit losses. Subsequent to the issuance of ASU No. 2016-13, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instrument, ASU No. 2019-05, Financial Instruments - Credit Losses (Topic 326) Targeted Transition Relief, ASU No. 2016-13, ASU No. 2019-10 Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842), and ASU No. 2019-11 Codification Improvements to Topic 326, Financial Instruments-Credit Losses. The subsequent ASUs do not change the core principle of the guidance in ASU No. 2016-13. Instead, these amendments are intended to clarify and improve operability of certain topics included within ASU No. 2016-13. Additionally, ASU No. 2019-10 defers the effective date for the adoption of the new standard on credit losses for public filers that are considered small reporting companies (“SRC”) as defined by the SEC to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, which will be fiscal year 2024 for the Company if it continues to be classified as a SRC. In February 2020, the FASB issued ASU 2020-02, which provides guidance regarding methodologies, documentation, and internal controls related to expected credit losses. The subsequent amendments will have the same effective date and transition requirements as ASU No. 2016-13. Early adoption is permitted. Topic 326 requires a modified retrospective approach by recording a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. While the Company is currently evaluating the impact of Topic 326, the Company does not expect the adoption of this ASU to have a material impact on its consolidated financial statements or the related disclosure. In December 2019, FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This update simplifies the accounting for income taxes. This update is effective for fiscal years beginning after December 15, 2020 (our fiscal year 2022). We are currently evaluating the impact of this update on our consolidated financial statements and related disclosures. Pronouncements Recently Adopted In August 2018, the Financial Accounting Standards Board (FASB) issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40). This update requires a customer in a cloud computing service arrangement to follow the internal-use software guidance to determine which implementation costs to recognize and defer as an asset. We adopted this guidance as of our first quarter of fiscal year 2021 with no impact on our consolidated financial statements. |
Revenue Recognition | Deferred Revenue Deferred revenue primarily consists of payments received in advance of revenue recognition from cloud, term and ratable licenses, and maintenance and support services and is recognized as the revenue recognition criteria are met. We generally invoice customers in annual or quarterly installments. The deferred revenue balance does not represent the total contract value of annual or multi-year, non-cancelable cloud or maintenance and support agreements. Deferred revenue is influenced by several factors, including seasonality, the compounding effects of renewals, invoice duration, invoice timing and new business linearity within the quarter. Deferred revenue that will be recognized during the succeeding twelve-month period is recorded as current deferred revenue and the remaining portion is recorded as noncurrent. Revenue Recognition Revenue Recognition Policy Our revenue is comprised of two categories including subscription and professional services. Subscription includes SaaS revenue and legacy revenue. SaaS includes revenue from cloud delivery arrangements, term licenses and embedded OEM royalties and associated support. Legacy revenue is associated with license, maintenance, and support contracts on perpetual license arrangements that we no longer sell. Professional services includes consulting, implementation and training. Significant Judgment Applied in the Determination of Revenue Recognition We enter into contractual arrangements with customers that may include promises to transfer multiple services, such as subscription, support and professional services. With respect to our business, a performance obligation is a promise to transfer a service to a customer that is distinct. Significant judgment is required to determine whether services are distinct performance obligations that should be accounted for separately or combined as one unit of accounting. Additionally, significant judgment is required to determine the timing of revenue recognition. We allocate the transaction price to each performance obligation on a relative standalone selling price basis (SSP). The SSP is the price at which we would sell a promised service separately to one of our customers. Judgment is required to determine the SSP for each distinct performance obligation. We determine the SSP by considering our pricing objectives in relation to market demand. Consideration is placed based on our history of discounting prices, size and volume of transactions involved, customer demographics and geographic locations, price lists, contract prices and our market strategy. Determination of Revenue Recognition Under Topic 606, we recognize revenue upon the transfer of control of promised services to our customers in the amount that is commensurate with the consideration that we expect to receive in exchange for those services. If consideration includes a variable amount in the arrangement, such as service level credits or contingent fees, then we include an estimate of the amount that we expect to receive for the total transaction price. The amount of revenue that we recognize is based on (i) identifying the contract with a customer; (ii) identifying the performance obligations in the contract; (iii) determining the transaction price; (iv) allocating the transaction price to the performance obligations in the contract on a relative SSP basis; and (v) recognizing revenue when, or as, we satisfy each performance obligation in the contract typically through delivery or when control is transferred to the customer. Subscription Revenue The following customer arrangements are recognized ratably over the contract term as the performance obligations are delivered: · Cloud delivery arrangements; · Maintenance and support arrangements; and · Term license subscriptions which incorporate on-premise software licenses and substantial cloud functionality that are not distinct in the context of our arrangements as such are considered highly interrelated and represent a single combined performance obligation. For contracts involving distinct software licenses, the license performance obligation is satisfied at a point in time when control is transferred to the customer. We typically invoice our customers in advance upon execution of the contract or subsequent renewals with payment terms between 30 and 45 days. Invoiced amounts are recorded in accounts receivable, deferred revenue or revenue, depending if control transferred to our customers based on each arrangement. The Company has a royalty revenue agreement with a customer related to the Company’s embedded intellectual property. Under the terms of the agreement, the customer is to provide a combined fixed fee, per agent, for each software license sold containing the embedded software to the Company. These embedded OEM royalties are included as subscription revenue. Under Topic 606 revenue guidance, since these arrangements are for sales-based licenses of intellectual property, for which the guidance in paragraph ASC 606-10-55-65 applies, the Company recognizes revenue only as the subsequent sale occurs. However, the Company notes that such sales are reported by the customer with a quarter in arrears, such revenue is recognized at the time it is reported and paid by the customer given that any estimated variable consideration would have to be fully constrained due to the unpredictability of such estimate and the unavoidable risk that it may lead to significant revenue reversals. Professional Services Revenue Professional services revenue includes system implementation, consulting, and training. The transaction price is allocated to various performance obligations based on their stand-alone selling prices. Revenue allocated to each performance obligation is recognized at the earlier of satisfaction of discrete performance obligations, or as work is performed on a time and material basis. Our consulting and implementation service contracts are bid either on a time-and-materials basis or on a fixed-fee basis. Fixed fees are generally paid upon milestone billing or acceptance at pre-determined points in the contract. Amounts that have been invoiced are recorded in accounts receivable and in deferred revenue or revenue, depending on whether transfer of control to customers has occurred . Training revenue that meets the criteria to be accounted for separately is recognized when training is provided. Contracts with Multiple Performance Obligations The Company enters into contracts that can include various combinations of subscriptions, professional services and maintenance and support, which are generally distinct and accounted for as separate performance obligations. For contracts with multiple performance obligations, the Company allocates the transaction price of the contract to each performance obligation on a relative basis using the respective standalone selling prices for each performance obligation. |
Summary of Business and Signi_3
Summary of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Summary of Business and Significant Accounting Policies | |
Schedule of Calculation of Basic and Diluted Net Loss Per Common Share | The following table represents the calculation of basic and diluted net income per common share (in thousands, except per share data): Years Ended June 30, 2021 2020 Net income applicable to common stockholders $ 6,959 $ 7,208 Basic net income per common share $ 0.22 $ 0.24 Weighted average common shares used in computing basic net income per common share 31,007 30,620 Effect of dilutive common equivalents outstanding 1,590 1,336 Weighted average common shares used in computing diluted net income per common share 32,597 31,956 Diluted net income per common share $ 0.21 $ 0.23 |
Schedule of Segment Information | Information relating to our geographic areas for the fiscal years ended June 30, 2021 and 2020 is as follows (in thousands): Operating Total Income Long-Lived Revenue (Loss) Assets Year ended June 30, 2021: North America $ 54,380 $ 4,936 $ 350 Europe, Middle East, & Africa 23,907 8,496 85 Asia Pacific — (6,093) 270 $ 78,287 $ 7,339 $ 705 Year ended June 30, 2020: North America $ 44,813 $ 890 $ 401 Europe, Middle East, & Africa 27,916 11,944 90 Asia Pacific — (5,428) 222 $ 72,729 $ 7,406 $ 713 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Text Block [Abstract] | |
Schedule of Property and Equipment, Net | As of June 30, 2021 2020 (in thousands) Computers and equipment $ 3,750 $ 3,324 Furniture and fixtures 1,029 940 Leasehold improvements 589 554 Total 5,368 4,818 Accumulated depreciation and amortization (4,663) (4,105) Property and equipment, net $ 705 $ 713 |
Summary of Accrued Compensation | As of June 30, 2021 2020 (in thousands) Accrued bonuses $ 3,601 $ 3,223 Accrued vacation 2,636 2,235 Payroll and other employee related costs 1,559 1,745 Accrued commissions 648 713 Accrued compensation $ 8,444 $ 7,916 |
Summary of Accrued Liabilities | As of June 30, 2021 2020 (in thousands) Customer advances $ 349 $ 471 Sales tax payable 796 672 VAT liability 2,190 848 Accrued other liabilities 1,017 1,432 Accrued liabilities $ 4,352 $ 3,423 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Revenue Recognition | |
Schedule of Disaggregation of Revenue | Fiscal Year Ended June 30, 2021 2020 (in thousands) Revenue: SaaS revenue $ 66,929 $ 56,793 Legacy revenue 5,442 9,336 Total subscription 72,371 66,129 Professional services 5,916 6,600 Total revenue $ 78,287 $ 72,729 |
Schedule of Revenue by Geographic Area | Fiscal Year Ended June 30, 2021 2020 (in thousands) Revenue: North America $ 54,380 $ 44,813 EMEA 23,907 27,916 Total Revenue $ 78,287 $ 72,729 |
Schedule of Changes in Contract Assets and Contract Liabilities | The following table presents the changes in contract liabilities (in thousands): Balance as of July 1, 2020 Additions Deductions Balance as of June 30, 2021 Contract liabilities: Deferred revenue 36,644 87,270 (77,703) 46,211 Deferred revenue, net of current portion 4,826 — (1,494) 3,332 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Text Block [Abstract] | |
Schedule of Income Before Income Taxes | Income before income tax (benefit) provision consisted of the following (in thousands): Fiscal Year Ended June 30, 2021 2020 United States $ 5,024 $ 5,260 Foreign 1,769 2,726 Income before income tax (benefit) provision $ 6,793 $ 7,986 |
Reconciliation of Federal Statutory Tax Rate to Effective Tax Rate | Fiscal Year Ended June 30, 2021 2020 Federal statutory income tax rate 21.0 % 21.0 % Current state taxes, net of federal benefit 2.1 3.3 Foreign rate differential (1.9) (0.6) Research and development credits (8.5) (0.6) Foreign withholding tax 0.5 1.2 Stock-based compensation (0.8) (0.3) Deferred return to provision (1.8) 0.7 Other items 0.3 0.5 Net change in valuation allowance (194.4) (71.5) Foreign income 2.9 8.5 Expiration of tax attributes 178.2 47.5 Effective tax rate (2.4) % 9.7 % |
Schedule of Components of Income Tax (Benefit) Provision | The components of the income tax (benefit) provision are as follows (in thousands): Fiscal Year Ended June 30, 2021 2020 Current (benefit) provision: Foreign $ 31 $ 401 Federal — (12) State 107 128 Total current: 138 517 Deferred: Federal — 62 Foreign (304) 199 Total deferred: (304) 261 Income tax (benefit) provision $ (166) $ 778 |
Schedule of Components of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets and liabilities for federal, state and foreign income taxes are as follows (in thousands): As of June 30, 2021 2020 Deferred tax assets: Net operating loss carryforwards $ 23,418 $ 35,105 Research credits 7,728 7,525 Deferred revenue 1,220 2,483 Stock-based compensation 1,136 1,100 Accruals and reserves 2,799 2,898 Lease liability 228 542 Other 46 56 Gross deferred tax assets 36,575 49,709 Less valuation allowance (35,492) (48,700) Net deferred tax assets $ 1,083 $ 1,009 Gross deferred tax liabilities Right-of-use asset $ (207) $ (500) Fixed assets (38) (20) Gross deferred tax liabilities (245) (520) Total deferred tax assets, net * $ 838 $ 489 *included in other assets on consolidated balance sheet |
Schedule of Aggregate Changes in the Balance of Gross Unrecognized Tax Benefits | The aggregate changes in the balance of our gross unrecognized tax benefits during fiscal years 2021 and 2020 were as follows (in thousands): Fiscal Year Ended June 30, 2021 2020 Beginning balance $ 1,691 $ 1,665 Increases in balances related to tax positions taken during current periods 71 26 Ending balance $ 1,762 $ 1,691 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Summary of Reserved Shares of Common Stock for Issuance | We have reserved shares of common stock for issuance as of June 30, 2021 as follows: Reserved Stock Options Stock options outstanding 2,735,512 Stock available for future grants or issuance: 2005 Stock Incentive Plan 944,527 2005 Management Stock Option Plan 68,649 2017 Employee Stock Purchase Plan 643,075 Total reserved shares of common stock for issuance 4,391,763 |
Summary of Options Vested and Exercisable | Options Outstanding Options Exercisable Weighted Range of Average Weighted Weighted Exercise Number of Remaining Average Number of Average Prices Shares Contractual Life Exercise Price Shares Exercise Price $1.5-$2.13 142,542 2.61 $ 1.78 137,505 $ 1.78 $2.5-$2.5 1,196,559 5.24 $ 2.50 1,123,861 $ 2.50 $3.4-$5.28 385,649 3.30 $ 4.38 365,503 $ 4.43 $5.31-$7.2 275,392 4.38 $ 6.34 244,877 $ 6.31 $7.47-$8.2 274,638 7.57 $ 7.90 135,111 $ 7.90 $8.23-$12.15 326,482 8.46 $ 10.28 106,020 $ 10.50 $12.25-$13.75 90,500 7.53 $ 13.41 52,213 $ 13.70 $14.275-$14.275 12,200 9.21 $ 14.28 — $ — $14.4-$14.4 3,550 7.12 $ 14.40 2,514 $ 14.40 $19.11-$19.11 28,000 9.29 $ 19.11 — $ — $1.5-$19.11 2,735,512 5.50 $ 5.18 2,167,604 $ 4.22 The summary of options vested and exercisable as of June 30, 2021 comprised: Weighted Average Weighted Aggregate Remaining Number of Average Intrinsic Contractual Shares Exercise Price Value Term Options outstanding 2,735,512 $ 5.18 $ 17,693,123 5.50 Fully vested and expected to vest options 2,667,951 $ 5.07 $ 17,536,993 5.42 Options exercisable 2,167,604 $ 4.22 $ 15,880,275 4.84 |
Summary of Effect of Stock Based Compensation | Fiscal Year Ended June 30, 2021 2020 Non-cash stock-based compensation expense $ (1,700) $ (1,861) Income tax expense (51) (56) Net income effect $ (1,751) $ (1,917) |
Summary of Stock Option Assumptions | Fiscal Year Ended June 30, 2021 2020 Dividend yield — — Expected volatility 72 % 70 % Average risk-free interest rate 0.50 % 1.37 % Expected life (in years) 4.35 4.33 |
Summary of Employee Stock Purchase Plan (ESPP) assumptions | Fiscal Year Ended June 30, 2021 2020 Expected term (in years) Volatility % % Expected dividend — — Risk-free interest rate % % Fair Value of grants per share $ $ |
2005 Management Stock Option Plan | |
Summary of Plan Activity | Shares Weighted Available for Options Average Grant Outstanding Exercise Price Balance as of June 30, 2019 68,649 1,317,726 $ 3.56 Options Granted — — $ — Options Exercised — (39,209) $ 2.89 Options Forfeited / Expired — — $ — Balance as of June 30, 2020 68,649 1,278,517 $ 3.58 Options Granted — — $ — Options Exercised — (106,000) $ 4.30 Options Forfeited / Expired — — $ — Balance as of June 30, 2021 68,649 1,172,517 $ 3.51 |
2005 Stock Incentive Plan | |
Summary of Plan Activity | Shares Weighted Available for Options Average Grant Outstanding Exercise Price Balance as of June 30, 2019 347,703 1,503,607 $ 4.67 Shares Added 1,000,000 — $ — Options Granted (350,125) 350,125 $ 8.29 Options Exercised — (170,475) $ 2.52 Options Forfeited / Expired 75,808 (75,808) $ 6.40 Balance as of June 30, 2020 1,073,386 1,607,449 $ 5.60 Options Granted (207,700) 207,700 $ 12.07 Options Exercised — (173,313) $ 4.41 Options Forfeited / Expired 78,841 (78,841) $ 8.69 Balance as of June 30, 2021 944,527 1,562,995 $ 6.44 |
Stock Options | |
Summary of Effect of Stock Based Compensation | Fiscal Year Ended June 30, 2021 2020 Cost of revenue $ $ Research and development Sales and marketing General and administrative Total $ 1,227 $ 1,567 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Intangible Assets | |
Schedule of Intangible Assets and Estimated Lives for Amortization | Intangible assets are amortized over the estimated lives, as follows (in thousands, except expected life): Gross Consolidated Carrying Accumulated Net Balance Statements of Operations Intangible Asset Amount Amortization June 30, 2021 Life Category Customer relationships - maintenance contracts 1,610 (1,610) — 6 Cost of recurring $ 1,610 $ (1,610) $ — Gross Consolidated Carrying Accumulated Net Balance Statements of Operations Intangible Asset Amount Amortization June 30, 2020 Life Category Customer relationships - maintenance contracts 1,610 (1,584) 26 6 Cost of recurring $ 1,610 $ (1,584) $ 26 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Leases | |
Schedule of lease information | As of June 30, 2021 Weighted average remaining lease term (in years) 1.78 Weighted average discount rate 4.75 % The following table presents information about leases on our consolidated statement of operations (in thousands): Fiscal Year Ended June 30, 2021 Operating lease expense $ 1,770 Short-term lease expense 4 Sublease income (618) |
Schedule of supplemental cash flow information related to leases | The following table presents supplemental cash flow information about our leases (in thousands): Fiscal Year Ended June 30, 2021 Operating cash outflows from operating leases $ 1,948 Right-of-use assets obtained in exchange for new operating lease liabilities — |
Schedule of maturities of lease liabilities | As of June 30, 2021, remaining maturities of lease liabilities are as follows (in thousands): Fiscal Period: Fiscal year 2022 $ 1,530 Fiscal year 2023 574 Fiscal year 2024 249 Total minimum lease payments 2,353 Less: Imputed interest (90) Total $ 2,263 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Text Block [Abstract] | |
Summary of Quarterly Results of Operations and Share Data | 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Fiscal Year (in thousands, except per share data) Fiscal Year 2021 Revenue $ 19,063 $ 19,233 $ 19,743 $ 20,248 $ 78,287 Gross profit $ 14,432 $ 14,522 $ 14,897 $ 15,169 $ 59,020 Income from operations $ 2,352 $ 1,896 $ 1,577 $ 1,514 $ 7,339 Net income $ 2,044 $ 1,606 $ 1,261 $ 2,048 $ 6,959 Basic net income per share $ 0.06 $ 0.05 $ 0.04 $ 0.07 $ 0.22 Diluted net income per share $ 0.06 $ 0.05 $ 0.04 $ 0.06 $ 0.21 Fiscal Year 2020 Revenue $ 17,190 $ 18,155 $ 18,354 $ 19,030 $ 72,729 Gross profit $ 11,875 $ 12,911 $ 12,854 $ 14,007 $ 51,648 Income from operations $ 1,095 $ 2,002 $ 1,757 $ 2,553 $ 7,406 Net income $ 1,217 $ 1,973 $ 1,867 $ 2,151 $ 7,208 Basic net income per share $ 0.04 $ 0.06 $ 0.06 $ 0.07 $ 0.24 Diluted net income per share $ 0.04 $ 0.06 $ 0.06 $ 0.07 $ 0.23 |
Summary of Business and Signi_4
Summary of Business and Significant Accounting Policies - Foreign Currency (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Summary of Business and Significant Accounting Policies | ||
Foreign currency transaction gains (losses) | $ 570 | $ (172) |
Summary of Business and Signi_5
Summary of Business and Significant Accounting Policies - Concentration of Credit Risk (Details) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021USD ($)item | Jun. 30, 2020USD ($)customer | |
Concentration of Credit Risk | ||
Cash, cash equivalents and restricted cash | $ 63,200 | |
Accounts Receivable | ||
Contract receivables | ||
Unbilled accounts receivable | $ 719 | $ 1,400 |
Sales | Customer Concentration Risk | Cisco Systems, Inc | ||
Concentration of Credit Risk | ||
Concentration risk, percentage | 21.00% | 18.00% |
Sales | Customer Concentration Risk | BT PLC | ||
Concentration of Credit Risk | ||
Concentration risk, percentage | 13.00% | 10.00% |
Accounts Receivable | Customer Concentration Risk | ||
Concentration of Credit Risk | ||
Number of partners and customers that accounted for more than ten percent of accounts receivables | 3 | 2 |
Accounts Receivable | Customer Concentration Risk | Customer One | ||
Concentration of Credit Risk | ||
Concentration risk, percentage | 30.00% | 23.00% |
Accounts Receivable | Customer Concentration Risk | Customer Two | ||
Concentration of Credit Risk | ||
Concentration risk, percentage | 17.00% | 18.00% |
Accounts Receivable | Customer Concentration Risk | Customer Three | ||
Concentration of Credit Risk | ||
Concentration risk, percentage | 16.00% |
Summary of Business and Signi_6
Summary of Business and Significant Accounting Policies - Property, Equipment, and Intangible Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Goodwill and other intangible assets | ||
Impairment of intangible assets | $ 0 | $ 0 |
Impairment of long-lived assets | $ 0 | $ 0 |
Minimum | ||
Property and Equipment | ||
Estimated useful life | 3 years | |
Maximum | ||
Property and Equipment | ||
Estimated useful life | 5 years | |
Leasehold improvements and leased equipment | Minimum | ||
Property and Equipment | ||
Estimated useful life | 3 years | |
Leasehold improvements and leased equipment | Maximum | ||
Property and Equipment | ||
Estimated useful life | 5 years |
Summary of Business and Signi_7
Summary of Business and Significant Accounting Policies - Costs Capitalized to Obtain Revenue Contracts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Capitalized costs | ||
Contract cost capitalized during period | $ 1,500 | $ 1,800 |
Amortization of contract cost | 1,200 | 842 |
Costs capitalized to obtain revenue contracts | $ 3,900 | $ 3,400 |
New revenue contracts | ||
Capitalized costs | ||
Amortization period | 5 years |
Summary of Business and Signi_8
Summary of Business and Significant Accounting Policies - Deferred Financing Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Summary of Business and Significant Accounting Policies | ||
Advertising Expense | $ 190 | $ 221 |
Summary of Business and Signi_9
Summary of Business and Significant Accounting Policies - Income Taxes (Detail) - USD ($) $ in Thousands | Dec. 22, 2017 | Dec. 21, 2017 | Jun. 30, 2021 | Jun. 30, 2020 |
Effects of Tax Cuts and Jobs Act | ||||
Federal statutory income tax rate | 21.00% | 35.00% | 21.00% | 21.00% |
GILTI income | $ 923 | |||
Base erosion anti-abuse tax (BEAT) | $ 0 | |||
Net operating loss carryforwards lost as a result of changes in ownership | $ 0 |
Summary of Business and Sign_10
Summary of Business and Significant Accounting Policies - Net Income (Loss) Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net Income (Loss) Per Common Share | ||||||||||
Net income | $ 2,048 | $ 1,261 | $ 1,606 | $ 2,044 | $ 2,151 | $ 1,867 | $ 1,973 | $ 1,217 | $ 6,959 | $ 7,208 |
Basic net income per share | $ 0.07 | $ 0.04 | $ 0.05 | $ 0.06 | $ 0.07 | $ 0.06 | $ 0.06 | $ 0.04 | $ 0.22 | $ 0.24 |
Weighted average common shares used in computing basic net income (loss) per common share | 31,007,000 | 30,620,000 | ||||||||
Effect of dilutive common equivalents outstanding | 1,590,000 | 1,336,000 | ||||||||
Diluted (in shares) | 32,597,000 | 31,956,000 | ||||||||
Diluted net income per share | $ 0.06 | $ 0.04 | $ 0.05 | $ 0.06 | $ 0.07 | $ 0.06 | $ 0.06 | $ 0.04 | $ 0.21 | $ 0.23 |
Stock Options | ||||||||||
Net Income (Loss) Per Common Share | ||||||||||
Antidilutive securities excluded from computation of earnings per share, share amount | 293,949 | 613,643 |
Summary of Business and Sign_11
Summary of Business and Significant Accounting Policies - Segment Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2021USD ($)segment | Jun. 30, 2020USD ($) | |
Segment Information | ||||||||||
Number of operating segments | segment | 1 | |||||||||
Revenue | $ 20,248 | $ 19,743 | $ 19,233 | $ 19,063 | $ 19,030 | $ 18,354 | $ 18,155 | $ 17,190 | $ 78,287 | $ 72,729 |
Income from operations | 1,514 | $ 1,577 | $ 1,896 | $ 2,352 | 2,553 | $ 1,757 | $ 2,002 | $ 1,095 | 7,339 | 7,406 |
Long-lived Assets | 705 | 713 | 705 | 713 | ||||||
North America | ||||||||||
Segment Information | ||||||||||
Revenue | 54,380 | 44,813 | ||||||||
Income from operations | 4,936 | 890 | ||||||||
Long-lived Assets | 350 | 401 | 350 | 401 | ||||||
Europe, Middle East, & Africa | ||||||||||
Segment Information | ||||||||||
Revenue | 23,907 | 27,916 | ||||||||
Income from operations | 8,496 | 11,944 | ||||||||
Long-lived Assets | 85 | 90 | 85 | 90 | ||||||
Asia Pacific | ||||||||||
Segment Information | ||||||||||
Income from operations | (6,093) | (5,428) | ||||||||
Long-lived Assets | $ 270 | $ 222 | $ 270 | $ 222 |
Summary of Business and Sign_12
Summary of Business and Significant Accounting Policies - Revenue Recognition (Details) | 12 Months Ended |
Jun. 30, 2021item | |
Summary of Business and Significant Accounting Policies | |
Number of revenue categories | 2 |
Revenue payment term, minimum | 30 days |
Revenue payment term, maximum | 45 days |
Balance Sheet Components - Summ
Balance Sheet Components - Summary of Property Plant Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Property and Equipment | ||
Property and equipment, gross | $ 5,368 | $ 4,818 |
Accumulated depreciation and amortization | (4,663) | (4,105) |
Property and equipment, net | 705 | 713 |
Computers and Equipment | ||
Property and Equipment | ||
Property and equipment, gross | 3,750 | 3,324 |
Furniture and Fixtures | ||
Property and Equipment | ||
Property and equipment, gross | 1,029 | 940 |
Leasehold Improvements | ||
Property and Equipment | ||
Property and equipment, gross | $ 589 | $ 554 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure Balance Sheet Components Narrative | ||
Depreciation and amortization | $ 428 | $ 304 |
Disposals of fixed assets | $ 0 | $ 920 |
Balance Sheet Components - Su_2
Balance Sheet Components - Summary of Accrued Compensation (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Disclosure Balance Sheet Components Summary Of Accrued Compensation | ||
Accrued bonuses | $ 3,601 | $ 3,223 |
Accrued vacation | 2,636 | 2,235 |
Payroll and other employee related costs | 1,559 | 1,745 |
Accrued commissions | 648 | 713 |
Accrued compensation | $ 8,444 | $ 7,916 |
Balance Sheet Components - Su_3
Balance Sheet Components - Summary of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Disclosure Balance Sheet Components Summary Of Accrued Liabilities | ||
Customer advances | $ 349 | $ 471 |
Sales tax payable | 796 | 672 |
VAT liability | 2,190 | 848 |
Accrued other liabilities | 1,017 | 1,432 |
Accrued liabilities | $ 4,352 | $ 3,423 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of revenue | ||||||||||
Revenue | $ 20,248 | $ 19,743 | $ 19,233 | $ 19,063 | $ 19,030 | $ 18,354 | $ 18,155 | $ 17,190 | $ 78,287 | $ 72,729 |
Subscription | ||||||||||
Disaggregation of revenue | ||||||||||
Revenue | 72,371 | 66,129 | ||||||||
SaaS revenue | ||||||||||
Disaggregation of revenue | ||||||||||
Revenue | 66,929 | 56,793 | ||||||||
Legacy revenue | ||||||||||
Disaggregation of revenue | ||||||||||
Revenue | 5,442 | 9,336 | ||||||||
Professional services | ||||||||||
Disaggregation of revenue | ||||||||||
Revenue | $ 5,916 | $ 6,600 |
Revenue Recognition - Revenue b
Revenue Recognition - Revenue by Geography (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue by geography | ||||||||||
Revenue | $ 20,248 | $ 19,743 | $ 19,233 | $ 19,063 | $ 19,030 | $ 18,354 | $ 18,155 | $ 17,190 | $ 78,287 | $ 72,729 |
North America | ||||||||||
Revenue by geography | ||||||||||
Revenue | 54,380 | 44,813 | ||||||||
Europe, Middle East, & Africa | ||||||||||
Revenue by geography | ||||||||||
Revenue | $ 23,907 | $ 27,916 |
Revenue Recognition - Changes i
Revenue Recognition - Changes in Contract Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Contract assets | ||
Contract assets | $ 0 | $ 0 |
Deferred revenue | ||
Balance at beginning of period | 36,644 | |
Additions | 87,270 | |
Deductions | (77,703) | |
Balance at end of period | 46,211 | |
Deferred revenue, net of current portion | ||
Balance at beginning of period | 4,826 | |
Deductions | (1,494) | |
Balance at end of period | 3,332 | |
Change in contract with customers | ||
Revenue recognized | $ 36,500 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligations (Details) $ in Millions | Jun. 30, 2021USD ($) |
Remaining performance obligations | |
Remaining Performance Obligations | $ 65.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |
Remaining performance obligations | |
Remaining Performance Obligations | $ 55.2 |
Remaining Performance Obligations, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Remaining performance obligations | |
Remaining Performance Obligations | $ 10.2 |
Remaining Performance Obligations, period |
Income Taxes - Income _ (Loss)
Income Taxes - Income / (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure Income Taxes Income Loss Before Income Taxes [Abstract] | ||
United States | $ 5,024 | $ 5,260 |
Foreign | 1,769 | 2,726 |
Income before income tax (benefit) provision | $ 6,793 | $ 7,986 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Federal Statutory Tax Rate to Effective Tax Rate (Detail) | Dec. 22, 2017 | Dec. 21, 2017 | Jun. 30, 2021 | Jun. 30, 2020 |
Disclosure Income Taxes Reconciliation Of Federal Statutory Tax Rate To Effective Tax Rate [Abstract] | ||||
Federal statutory income tax rate | 21.00% | 35.00% | 21.00% | 21.00% |
Current state taxes, net of federal benefit | 2.10% | 3.30% | ||
Foreign rate differential | (1.90%) | (0.60%) | ||
Research and development credits | (8.50%) | (0.60%) | ||
Foreign withholding tax | 0.50% | 1.20% | ||
Stock-based compensation | (0.80%) | (0.30%) | ||
Deferred return to provision | (1.80%) | 0.70% | ||
Other items | 0.30% | 0.50% | ||
Net change in valuation allowance | (194.40%) | (71.50%) | ||
Foreign income | 2.90% | 8.50% | ||
Expiration of tax attributes | 178.20% | 47.50% | ||
Effective tax rate | (2.40%) | 9.70% |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Current (benefit) provision: | ||
Foreign | $ 31 | $ 401 |
Federal | (12) | |
State | 107 | 128 |
Total current | 138 | 517 |
Deferred: | ||
Federal | 62 | |
Foreign | (304) | 199 |
Total deferred | (304) | 261 |
Income tax (benefit) provision | $ (166) | $ 778 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Income Taxes | ||
Federal net operating carry forwards | $ 107,000 | |
State net operating carry forwards | 14,300 | |
Research and development credit carry forwards | 7,728 | $ 7,525 |
Net operating loss carryforwards lost as a result of changes in ownership | 0 | |
Increase (decrease) in valuation allowance | (13,200) | $ (5,700) |
Undistributed earnings of foreign subsidiaries | 18,700 | |
Federal Research And Development Credits | ||
Income Taxes | ||
Research and development credit carry forwards | 3,200 | |
California Research and Development Credits | ||
Income Taxes | ||
Research and development credit carry forwards | $ 5,700 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 23,418 | $ 35,105 |
Research credits | 7,728 | 7,525 |
Deferred revenue | 1,220 | 2,483 |
Stock-based compensation | 1,136 | 1,100 |
Accruals and reserves | 2,799 | 2,898 |
Lease liability | 228 | 542 |
Other | 46 | 56 |
Gross deferred tax assets | 36,575 | 49,709 |
Less valuation allowance | (35,492) | (48,700) |
Net deferred tax assets | 1,083 | 1,009 |
Deferred tax liabilities: | ||
Right-of-use asset | (207) | (500) |
Fixed assets | (38) | (20) |
Gross deferred tax liabilities | (245) | (520) |
Other Assets | ||
Deferred tax liabilities: | ||
Total deferred tax assets, net | $ 838 | $ 489 |
Income Taxes - Uncertain Tax Po
Income Taxes - Uncertain Tax Positions (Detail) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021USD ($)Y | Jun. 30, 2020USD ($) | |
Disclosure Income Taxes Gross Unrecognized Tax Benefits [Abstract] | ||
Beginning balance | $ 1,691 | $ 1,665 |
Increases in balances related to tax positions taken during current periods | 71 | 26 |
Ending balance | 1,762 | $ 1,691 |
Accrued interest and penalties related to unrecognized tax benefit (provision) | $ 0 | |
Number of open federal tax years from the date of utilization of net operating loss or credits | Y | 3 | |
Number of open state tax years from the date of utilization of net operating loss or credits | Y | 4 |
Stockholders' Equity - Reserved
Stockholders' Equity - Reserved Shares of Common Stock for Issuance (Detail) - shares | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 |
Stock-based Compensation Expense | |||
Stock options outstanding | 2,735,512 | ||
Total reserved shares of common stock for issuance | 4,391,763 | ||
Employee Stock Purchase Plan (ESPP) | |||
Stock-based Compensation Expense | |||
Stock available for future grants or issuance | 643,075 | ||
2005 Stock Incentive Plan | |||
Stock-based Compensation Expense | |||
Stock options outstanding | 1,562,995 | 1,607,449 | 1,503,607 |
Stock available for future grants or issuance | 944,527 | ||
2005 Management Stock Option Plan | |||
Stock-based Compensation Expense | |||
Stock options outstanding | 1,172,517 | 1,278,517 | 1,317,726 |
Stock available for future grants or issuance | 68,649 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - $ / shares | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Stock-based Compensation Expense | ||
Preferred stock, authorized | 5,000,000 | |
Preferred stock par value per share | $ 0.001 | |
Preferred stock, outstanding | 0 | 0 |
Preferred stock, issued | 0 | 0 |
Options granted during period | 207,700 | 350,125 |
Options granted during period, weighted-average price (in dollars per share) | $ 6.60 | $ 4.50 |
2005 Stock Incentive Plan | ||
Stock-based Compensation Expense | ||
Options granted during period | 207,700 | 350,125 |
Options granted during period, weighted-average price (in dollars per share) | $ 12.07 | $ 8.29 |
Stockholders' Equity - Activity
Stockholders' Equity - Activity under 2005 Management Stock Option Plan (Detail) - $ / shares | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Options Outstanding | ||
Options Granted | 207,700 | 350,125 |
Balance, ending | 2,735,512 | |
Weighted Average Exercise Price | ||
Options Granted | $ 6.60 | $ 4.50 |
Balance, ending | $ 5.18 | |
2005 Management Stock Option Plan | ||
Stock-based Compensation Expense | ||
Right of repurchase, lapse rate with respect to shares granted | 2.08% | |
Shares Available for Grant | ||
Balance, beginning | 68,649 | 68,649 |
Balance, ending | 68,649 | 68,649 |
Options Outstanding | ||
Balance, beginning | 1,278,517 | 1,317,726 |
Options Exercised | (106,000) | (39,209) |
Balance, ending | 1,172,517 | 1,278,517 |
Weighted Average Exercise Price | ||
Balance, beginning | $ 3.58 | $ 3.56 |
Options Exercised | 4.30 | 2.89 |
Balance, ending | $ 3.51 | $ 3.58 |
2005 Management Stock Option Plan | Minimum | ||
Stock-based Compensation Expense | ||
Option granted at price not less than percentage of fair market value of the common stock on the date of grant | 100.00% | |
2005 Management Stock Option Plan | Maximum | ||
Stock-based Compensation Expense | ||
Exercisable period from the date of grant | 10 years |
Stockholders' Equity - Activi_2
Stockholders' Equity - Activity under 2005 Stock Incentive Plan (Detail) - $ / shares | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Options Outstanding | ||
Options Granted | 207,700 | 350,125 |
Balance, ending | 2,735,512 | |
Weighted Average Exercise Price | ||
Options Granted | $ 6.60 | $ 4.50 |
Balance, ending | $ 5.18 | |
2005 Stock Incentive Plan | ||
Stock-based Compensation Expense | ||
Vesting period | 4 years | |
Shares Available for Grant | ||
Balance, beginning | 1,073,386 | 347,703 |
Shares Added | 1,000,000 | |
Options Granted | (207,700) | (350,125) |
Options Forfeited / Expired | 78,841 | 75,808 |
Balance, ending | 944,527 | 1,073,386 |
Options Outstanding | ||
Balance, beginning | 1,607,449 | 1,503,607 |
Options Granted | 207,700 | 350,125 |
Options Exercised | (173,313) | (170,475) |
Options Forfeited / Expired | (78,841) | (75,808) |
Balance, ending | 1,562,995 | 1,607,449 |
Weighted Average Exercise Price | ||
Balance, beginning | $ 5.60 | $ 4.67 |
Options Granted | 12.07 | 8.29 |
Options Exercised | 4.41 | 2.52 |
Options Forfeited / Expired | 8.69 | 6.40 |
Balance, ending | $ 6.44 | $ 5.60 |
2005 Stock Incentive Plan | Maximum | ||
Stock-based Compensation Expense | ||
Option term | 10 years | |
2005 Stock Incentive Plan | Consultants | ||
Shares Available for Grant | ||
Options Granted | 0 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Options Outstanding and Exercisable under All Stock Option Plans (Detail) | 12 Months Ended |
Jun. 30, 2021$ / sharesshares | |
$1.50-$2.13 | |
Stock options outstanding and exercisable under all stock option plans | |
Range of Exercise Prices, minimum | $ 1.50 |
Range of Exercise Prices, maximum | $ 2.13 |
Options Outstanding, Number | shares | 142,542 |
Options Outstanding, Weighted Average Remaining Contractual Life | 2 years 7 months 10 days |
Options Outstanding, Weighted Average Exercise Price | $ 1.78 |
Options Exercisable, Number | shares | 137,505 |
Options Exercisable, Weighted Average Exercise Price | $ 1.78 |
$2.50-$2.50 | |
Stock options outstanding and exercisable under all stock option plans | |
Range of Exercise Prices, minimum | 2.50 |
Range of Exercise Prices, maximum | $ 2.50 |
Options Outstanding, Number | shares | 1,196,559 |
Options Outstanding, Weighted Average Remaining Contractual Life | 5 years 2 months 27 days |
Options Outstanding, Weighted Average Exercise Price | $ 2.50 |
Options Exercisable, Number | shares | 1,123,861 |
Options Exercisable, Weighted Average Exercise Price | $ 2.50 |
$3.40-$5.28 | |
Stock options outstanding and exercisable under all stock option plans | |
Range of Exercise Prices, minimum | 3.40 |
Range of Exercise Prices, maximum | $ 5.28 |
Options Outstanding, Number | shares | 385,649 |
Options Outstanding, Weighted Average Remaining Contractual Life | 3 years 3 months 18 days |
Options Outstanding, Weighted Average Exercise Price | $ 4.38 |
Options Exercisable, Number | shares | 365,503 |
Options Exercisable, Weighted Average Exercise Price | $ 4.43 |
$5.31-$7.20 | |
Stock options outstanding and exercisable under all stock option plans | |
Range of Exercise Prices, minimum | 5.31 |
Range of Exercise Prices, maximum | $ 7.20 |
Options Outstanding, Number | shares | 275,392 |
Options Outstanding, Weighted Average Remaining Contractual Life | 4 years 4 months 17 days |
Options Outstanding, Weighted Average Exercise Price | $ 6.34 |
Options Exercisable, Number | shares | 244,877 |
Options Exercisable, Weighted Average Exercise Price | $ 6.31 |
$7.47-$8.20 | |
Stock options outstanding and exercisable under all stock option plans | |
Range of Exercise Prices, minimum | 7.47 |
Range of Exercise Prices, maximum | $ 8.20 |
Options Outstanding, Number | shares | 274,638 |
Options Outstanding, Weighted Average Remaining Contractual Life | 7 years 6 months 26 days |
Options Outstanding, Weighted Average Exercise Price | $ 7.90 |
Options Exercisable, Number | shares | 135,111 |
Options Exercisable, Weighted Average Exercise Price | $ 7.90 |
$8.23-$12.15 | |
Stock options outstanding and exercisable under all stock option plans | |
Range of Exercise Prices, minimum | 8.23 |
Range of Exercise Prices, maximum | $ 12.15 |
Options Outstanding, Number | shares | 326,482 |
Options Outstanding, Weighted Average Remaining Contractual Life | 8 years 5 months 16 days |
Options Outstanding, Weighted Average Exercise Price | $ 10.28 |
Options Exercisable, Number | shares | 106,020 |
Options Exercisable, Weighted Average Exercise Price | $ 10.50 |
$12.25-$13.75 | |
Stock options outstanding and exercisable under all stock option plans | |
Range of Exercise Prices, minimum | 12.25 |
Range of Exercise Prices, maximum | $ 13.75 |
Options Outstanding, Number | shares | 90,500 |
Options Outstanding, Weighted Average Remaining Contractual Life | 7 years 6 months 11 days |
Options Outstanding, Weighted Average Exercise Price | $ 13.41 |
Options Exercisable, Number | shares | 52,213 |
Options Exercisable, Weighted Average Exercise Price | $ 13.70 |
$14.275-$14.275 | |
Stock options outstanding and exercisable under all stock option plans | |
Range of Exercise Prices, minimum | 14.275 |
Range of Exercise Prices, maximum | $ 14.275 |
Options Outstanding, Number | shares | 12,200 |
Options Outstanding, Weighted Average Remaining Contractual Life | 9 years 2 months 16 days |
Options Outstanding, Weighted Average Exercise Price | $ 14.28 |
$14.40-$14.40 | |
Stock options outstanding and exercisable under all stock option plans | |
Range of Exercise Prices, minimum | 14.40 |
Range of Exercise Prices, maximum | $ 14.40 |
Options Outstanding, Number | shares | 3,550 |
Options Outstanding, Weighted Average Remaining Contractual Life | 7 years 1 month 13 days |
Options Outstanding, Weighted Average Exercise Price | $ 14.40 |
Options Exercisable, Number | shares | 2,514 |
Options Exercisable, Weighted Average Exercise Price | $ 14.40 |
$19.11-$19.11 | |
Stock options outstanding and exercisable under all stock option plans | |
Range of Exercise Prices, minimum | 19.11 |
Range of Exercise Prices, maximum | $ 19.11 |
Options Outstanding, Number | shares | 28,000 |
Options Outstanding, Weighted Average Remaining Contractual Life | 9 years 3 months 15 days |
Options Outstanding, Weighted Average Exercise Price | $ 19.11 |
$1.50-$19.11 | |
Stock options outstanding and exercisable under all stock option plans | |
Range of Exercise Prices, minimum | 1.50 |
Range of Exercise Prices, maximum | $ 19.11 |
Options Outstanding, Number | shares | 2,735,512 |
Options Outstanding, Weighted Average Remaining Contractual Life | 5 years 6 months |
Options Outstanding, Weighted Average Exercise Price | $ 5.18 |
Options Exercisable, Number | shares | 2,167,604 |
Options Exercisable, Weighted Average Exercise Price | $ 4.22 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Option Vested and Exercisable (Detail) - USD ($) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Number of Shares | ||
Options outstanding | 2,735,512 | |
Fully vested and expected to vest options | 2,667,951 | |
Options exercisable | 2,167,604 | |
Weighted Average Exercise Price | ||
Options outstanding | $ 5.18 | |
Fully vested and expected to vest options | 5.07 | |
Options exercisable | $ 4.22 | |
Aggregate Intrinsic Value | ||
Options outstanding | $ 17,693,123 | |
Fully vested and expected to vest options | 17,536,993 | |
Options exercisable | $ 15,880,275 | |
Closing stock price | $ 11.48 | |
Total intrinsic value of the options exercised during the period | $ 2,000,000 | $ 1,300,000 |
Weighted Average Remaining Contractual Term | ||
Options outstanding | 5 years 6 months | |
Fully vested and expected to vest options | 5 years 5 months 1 day | |
Options exercisable | 4 years 10 months 2 days |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Effect of Stock Based Compensation (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Non-cash stock-based compensation expense | $ (1,700) | $ (1,861) |
Income tax expense | (51) | (56) |
Net income effect | (1,751) | (1,917) |
eGain UK and Exony | ||
Income tax expense | (51) | (56) |
eGain and Other US subsidiaries | ||
Income tax expense | 0 | 0 |
Non-employee awards | ||
Non-cash stock-based compensation expense | $ 47 | $ 120 |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Option Valuation Assumptions (Detail) | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Disclosure Stockholders Equity Valuation Assumptions | ||
Dividend yield | 0.00% | 0.00% |
Volatility | 72.00% | 70.00% |
Average risk-free interest rate | 0.50% | 1.37% |
Expected life (in years) | 4 years 4 months 6 days | 4 years 3 months 29 days |
Stockholders' Equity - ESPP Val
Stockholders' Equity - ESPP Valuation Assumptions (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
ESPP | ||
Stock-based compensation | $ 1,700 | $ 1,861 |
Weighted average period over which unrecognized compensation is expected to be recognized | 1 year 2 months 23 days | |
Assumptions | ||
Expected life (in years) | 4 years 4 months 6 days | 4 years 3 months 29 days |
Volatility | 72.00% | 70.00% |
Expected dividend | 0.00% | 0.00% |
Risk free interest rate | 0.50% | 1.37% |
Employee Stock Purchase Plan (ESPP) | ||
ESPP | ||
Percentage of stock price at which stock can be purchased | 85.00% | |
Offering period | 27 months | |
Purchase period | 6 months | |
Stock-based compensation | $ 473 | $ 294 |
ESPP purchase rights granted | 152,092 | |
Weighted average period over which unrecognized compensation is expected to be recognized | 5 months 1 day | |
Unrecognized compensation expense | $ 231 | |
ESPP shares issued | 130,408 | |
ESPP shares available for issuance | 643,075 | |
Assumptions | ||
Expected life (in years) | 6 months | 6 months |
Volatility | 69.00% | 65.00% |
Risk free interest rate | 1.27% | 1.88% |
Fair Value of grants per share | $ 3.64 | $ 2.97 |
Employee Stock Purchase Plan (ESPP) | Minimum | ||
ESPP | ||
Percentage of base earnings that can be withheld | 1.00% | |
Employee Stock Purchase Plan (ESPP) | Maximum | ||
ESPP | ||
Percentage of base earnings that can be withheld | 15.00% |
Stockholders' Equity - Stock-ba
Stockholders' Equity - Stock-based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Stock-based Compensation Expense | ||
Stock-based compensation | $ 1,700 | $ 1,861 |
Total unamortized compensation cost, net of forfeitures, of all options granted but not yet vested | $ 1,100 | |
Weighted average period over which unrecognized compensation is expected to be recognized | 1 year 2 months 23 days | |
Cost of revenue | ||
Stock-based Compensation Expense | ||
Stock-based compensation | $ 326 | 205 |
Research and development | ||
Stock-based Compensation Expense | ||
Stock-based compensation | 509 | 706 |
Sales and marketing expense | ||
Stock-based Compensation Expense | ||
Stock-based compensation | 657 | 551 |
General and administrative expense | ||
Stock-based Compensation Expense | ||
Stock-based compensation | 208 | 399 |
Stock Options | ||
Stock-based Compensation Expense | ||
Stock-based compensation | 1,227 | 1,567 |
Stock Options | Cost of revenue | ||
Stock-based Compensation Expense | ||
Stock-based compensation | 222 | 144 |
Stock Options | Research and development | ||
Stock-based Compensation Expense | ||
Stock-based compensation | 347 | 599 |
Stock Options | Sales and marketing expense | ||
Stock-based Compensation Expense | ||
Stock-based compensation | 501 | 467 |
Stock Options | General and administrative expense | ||
Stock-based Compensation Expense | ||
Stock-based compensation | $ 157 | $ 357 |
Intangible Assets - Intangible
Intangible Assets - Intangible assets and estimated amortizable lives (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Intangible assets | ||
Gross Carrying Amount | $ 1,610 | $ 1,610 |
Accumulated Amortization | (1,610) | (1,584) |
Net Balance | 26 | |
Amortization expense | 26 | 268 |
Customer relationships - maintenance contracts | ||
Intangible assets | ||
Gross Carrying Amount | 1,610 | 1,610 |
Accumulated Amortization | $ (1,610) | (1,584) |
Net Balance | $ 26 | |
Life | 6 years | 6 years |
Leases - Weighted Average Lease
Leases - Weighted Average Lease Term and Discount (Details) | Jun. 30, 2021 |
Leases | |
Weighted average remaining lease term (in years) | 1 year 9 months 11 days |
Weighted average discount rate | 4.75% |
Leases - Consolidated Statement
Leases - Consolidated Statement of Operations Information (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2021USD ($) | |
Leases | |
Operating lease expense | $ 1,770 |
Short-term lease expense | 4 |
Sublease income | (618) |
Operating cash outflows from operating leases | $ 1,948 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Fiscal Period: | |
Fiscal year 2022 | $ 1,530 |
Fiscal year 2023 | 574 |
Fiscal year 2024 | 249 |
Total minimum lease payments | 2,353 |
Less: Imputed interest | (90) |
Total | $ 2,263 |
Commitments and Contingencies -
Commitments and Contingencies - Other Commitments (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Warranty | ||
Warranty period, maximum | 1 year | |
UNITED STATES | ||
Employee benefit plans | ||
Employee contribution from salary | 60.00% | |
Employer contributions to 401(k) plan | $ 569 | $ 463 |
Defined Contribution Plan, Tax Status [Extensible List] | us-gaap:QualifiedPlanMember | us-gaap:QualifiedPlanMember |
Foreign Plans | ||
Employee benefit plans | ||
Defined contribution plans' expenses | $ 534 | $ 466 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Jun. 30, 2020 |
Recurring | Level 1 | ||
Fair value measurement of assets and liabilities | ||
Cash equivalents | $ 55.4 | $ 41.8 |
Quarterly Financial Data - Summ
Quarterly Financial Data - Summary of Quarterly Results of Operations and Share Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2021 | Jun. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Revenue | $ 20,248 | $ 19,743 | $ 19,233 | $ 19,063 | $ 19,030 | $ 18,354 | $ 18,155 | $ 17,190 | $ 78,287 | $ 72,729 |
Gross profit | 15,169 | 14,897 | 14,522 | 14,432 | 14,007 | 12,854 | 12,911 | 11,875 | 59,020 | 51,648 |
Income from operations | 1,514 | 1,577 | 1,896 | 2,352 | 2,553 | 1,757 | 2,002 | 1,095 | 7,339 | 7,406 |
Net income | $ 2,048 | $ 1,261 | $ 1,606 | $ 2,044 | $ 2,151 | $ 1,867 | $ 1,973 | $ 1,217 | $ 6,959 | $ 7,208 |
Basic net income per share | $ 0.07 | $ 0.04 | $ 0.05 | $ 0.06 | $ 0.07 | $ 0.06 | $ 0.06 | $ 0.04 | $ 0.22 | $ 0.24 |
Diluted net income per share | $ 0.06 | $ 0.04 | $ 0.05 | $ 0.06 | $ 0.07 | $ 0.06 | $ 0.06 | $ 0.04 | $ 0.21 | $ 0.23 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Detail) - Allowance for Doubtful Accounts - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Valuation And Qualifying Accounts | ||
Balance at Beginning of Period | $ 384 | $ 320 |
Additions Charged to Expense | 400 | 317 |
Amounts Written Off, Net of Recoveries | (350) | (253) |
Balance at End of Period | $ 434 | $ 384 |