Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Sep. 11, 2023 | Dec. 31, 2022 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Jun. 30, 2023 | ||
Entity File Number | 001-35314 | ||
Entity Registrant Name | eGain Corporation | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 77-0466366 | ||
Entity Address, Address Line One | 1252 Borregas Avenue | ||
Entity Address, City or Town | Sunnyvale | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94089 | ||
City Area Code | 408 | ||
Local Phone Number | 636-4500 | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Trading Symbol | EGAN | ||
Security Exchange Name | NASDAQ | ||
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 | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 199.7 | ||
Entity Common Stock, Shares Outstanding | 31,483,386 | ||
Entity Central Index Key | 0001066194 | ||
Current Fiscal Year End Date | --06-30 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Auditor Name | BPM LLP | ||
Auditor Firm ID | 207 | ||
Auditor Location | San Jose, California |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 73,201 | $ 72,173 |
Restricted cash | 7 | 7 |
Accounts receivable, less allowance for doubtful accounts of $237 and $123 as of June 30, 2023 and 2022, respectively | 31,569 | 26,961 |
Costs capitalized to obtain revenue contracts, net | 1,317 | 1,487 |
Prepaid expenses | 2,466 | 2,612 |
Other current assets | 1,268 | 895 |
Total current assets | 109,828 | 104,135 |
Property and equipment, net | 633 | 831 |
Operating lease right-of-use assets | 2,797 | 3,850 |
Costs capitalized to obtain revenue contracts, net of current portion | 2,318 | 3,136 |
Goodwill | 13,186 | 13,186 |
Other assets, net | 1,355 | 871 |
Total assets | 130,117 | 126,009 |
Current liabilities: | ||
Accounts payable | 2,044 | 1,706 |
Accrued compensation | 7,697 | 8,708 |
Accrued liabilities | 5,387 | 4,926 |
Operating lease liabilities | 832 | 1,044 |
Deferred revenue | 47,762 | 45,638 |
Total current liabilities | 63,722 | 62,022 |
Deferred revenue, net of current portion | 2,101 | 3,785 |
Operating lease liabilities, net of current portion | 1,762 | 2,537 |
Other long-term liabilities | 836 | 808 |
Total liabilities | 68,421 | 69,152 |
Commitments and contingencies (Note 7 and 8) | ||
Stockholders' equity: | ||
Common stock, $0.001 par value - authorized: 60,000 shares; issued: 32,268 and 31,930 shares; outstanding: 31,482 and 31,930 shares as of June 30, 2023 and 2022, respectively | 32 | 32 |
Additional paid-in capital | 401,087 | 393,157 |
Treasury stock, at cost: 786 and 0 common shares as of June 30, 2023 and 2022, respectively | (5,763) | |
Notes receivable from stockholders | (97) | (95) |
Accumulated other comprehensive loss | (2,122) | (2,687) |
Accumulated deficit | (331,441) | (333,550) |
Total stockholders' equity | 61,696 | 56,857 |
Total liabilities and stockholders' equity | $ 130,117 | $ 126,009 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowance for doubtful accounts | $ 237 | $ 123 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 32,268,000 | 31,930,000 |
Common stock, shares outstanding | 31,482,000 | 31,930,000 |
Treasury stock, at cost, shares | 786,000 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue: | ||
Revenue | $ 98,011 | $ 91,951 |
Cost of revenue: | ||
Cost of revenue | 27,315 | 24,537 |
Gross profit | 70,696 | 67,414 |
Operating expenses: | ||
Research and development | 27,300 | 24,387 |
Sales and marketing | 31,707 | 33,746 |
General and administrative | 10,300 | 11,419 |
Total operating expenses | 69,307 | 69,552 |
Income (loss) from operations | 1,389 | (2,138) |
Interest income | 2,401 | 94 |
Other (expense) income, net | (434) | 838 |
Income (loss) before income tax provision | 3,356 | (1,206) |
Provision for income taxes | (1,247) | (1,235) |
Net income (loss) | $ 2,109 | $ (2,441) |
Earnings (loss) per share: | ||
Basic (in dollars per share) | $ 0.07 | $ (0.08) |
Diluted (in dollars per share) | $ 0.06 | $ (0.08) |
Weighted-average shares used in computation: | ||
Basic (in shares) | 31,959 | 31,553 |
Diluted (in shares) | 32,799 | 31,553 |
Subscription | ||
Revenue: | ||
Revenue | $ 90,324 | $ 84,557 |
Cost of revenue: | ||
Cost of revenue | 18,677 | 14,780 |
Professional services | ||
Revenue: | ||
Revenue | 7,687 | 7,394 |
Cost of revenue: | ||
Cost of revenue | $ 8,638 | $ 9,757 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Summary of stock-based compensation included in the costs and expenses above: | ||
Stock-based compensation | $ 6,246 | $ 11,380 |
Cost of sales | ||
Summary of stock-based compensation included in the costs and expenses above: | ||
Stock-based compensation | 1,469 | 3,056 |
Research and Development | ||
Summary of stock-based compensation included in the costs and expenses above: | ||
Stock-based compensation | 1,970 | 2,935 |
Sales and marketing expense | ||
Summary of stock-based compensation included in the costs and expenses above: | ||
Stock-based compensation | 997 | 2,367 |
General and administrative expense | ||
Summary of stock-based compensation included in the costs and expenses above: | ||
Stock-based compensation | $ 1,810 | $ 3,022 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||
Net income (loss) | $ 2,109 | $ (2,441) |
Other comprehensive income (loss), net of taxes: | ||
Foreign currency translation adjustments | 565 | (1,467) |
Comprehensive income (loss) | $ 2,674 | $ (3,908) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional Paid-in Capital | Treasury Stock, At Cost | Notes Receivable From Stockholders | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total |
Balance at beginning of period at Jun. 30, 2021 | $ 31 | $ 378,451 | $ (92) | $ (1,220) | $ (331,109) | $ 46,061 | |
Balance at beginning of period (in shares) at Jun. 30, 2021 | 31,231 | ||||||
Interest on stockholders' notes | (3) | (3) | |||||
Issuance of common stock upon exercise of stock options | $ 1 | 2,139 | 2,140 | ||||
Issuance of common stock upon exercise of stock options (in shares) | 553 | ||||||
Issuance of common stock in connection with employee stock purchase plan | 1,187 | 1,187 | |||||
Issuance of common stock in connection with employee stock purchase plan (in shares) | 146 | ||||||
Stock-based compensation | 11,380 | 11,380 | |||||
Foreign currency translation adjustments | (1,467) | (1,467) | |||||
Net income (loss) | (2,441) | (2,441) | |||||
Balance at end of period at Jun. 30, 2022 | $ 32 | 393,157 | (95) | (2,687) | (333,550) | $ 56,857 | |
Balance at end of period (in shares) at Jun. 30, 2022 | 31,930 | ||||||
Balance at end of period (in shares) at Jun. 30, 2022 | 0 | ||||||
Interest on stockholders' notes | (2) | $ (2) | |||||
Issuance of common stock upon exercise of stock options | 610 | 610 | |||||
Issuance of common stock upon exercise of stock options (in shares) | 180 | ||||||
Repurchase of common stock | $ (5,763) | (5,763) | |||||
Repurchase of common stock, shares | (786) | 786 | |||||
Issuance of common stock in connection with employee stock purchase plan | 1,074 | 1,074 | |||||
Issuance of common stock in connection with employee stock purchase plan (in shares) | 158 | ||||||
Stock-based compensation | 6,246 | 6,246 | |||||
Foreign currency translation adjustments | 565 | 565 | |||||
Net income (loss) | 2,109 | 2,109 | |||||
Balance at end of period at Jun. 30, 2023 | $ 32 | $ 401,087 | $ (5,763) | $ (97) | $ (2,122) | $ (331,441) | $ 61,696 |
Balance at end of period (in shares) at Jun. 30, 2023 | 31,482 | ||||||
Balance at end of period (in shares) at Jun. 30, 2023 | 786 | 786 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 2,109 | $ (2,441) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Amortization of costs capitalized to obtain revenue contracts | 1,529 | 1,482 |
Amortization of right-of-use assets | 1,142 | 1,046 |
Depreciation and amortization | 490 | 478 |
Provision for doubtful accounts | 260 | 68 |
Deferred income taxes | (584) | 292 |
Stock-based compensation | 6,246 | 11,380 |
Gain on disposal of property and equipment | (9) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (4,508) | (2,247) |
Costs capitalized to obtain revenue contracts | (462) | (2,399) |
Prepaid expenses | 164 | 357 |
Other current assets | (384) | (149) |
Other non-current assets | 71 | (20) |
Accounts payable | 326 | (1,339) |
Accrued compensation | (1,068) | 559 |
Accrued liabilities | 405 | 825 |
Deferred revenue | (60) | 1,599 |
Operating lease liabilities | (1,075) | (1,412) |
Other long-term liabilities | 29 | 42 |
Net cash provided by operating activities | 4,621 | 8,121 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (288) | (628) |
Net cash used in investing activities | (288) | (628) |
Cash flows from financing activities: | ||
Proceeds from exercise of stock options | 610 | 2,140 |
Proceeds from employee stock purchase plan | 1,074 | 1,187 |
Repurchases of common stock | (5,763) | |
Net cash (used in) provided by financing activities | (4,079) | 3,327 |
Effect of change in exchange rates on cash and cash equivalents | 774 | (1,878) |
Net increase in cash, cash equivalents and restricted cash | 1,028 | 8,942 |
Cash, cash equivalents and restricted cash at beginning of year | 72,180 | 63,238 |
Cash, cash equivalents and restricted cash at end of year | 73,208 | 72,180 |
Supplemental cash flow disclosures: | ||
Cash paid for taxes | 1,701 | 400 |
ROU assets and lease liabilities recognized from lease modification | $ 91 | $ 2,820 |
Summary of Business and Signifi
Summary of Business and Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2023 | |
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 knowledge hub, powered by conversational artificial intelligence (AI) and analytics. We sell mostly to large enterprises across financial services, telecommunications, retail, government, healthcare, and utilities seeking to better serve customers at scale while coping with content silos, process complexity, and regulatory compliance. With our mantra of AX + BX + CX = DX™ 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), 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 loss. Foreign currency transaction gains and losses are included in “other (expense) income, net” in the consolidated statements of operations, and resulted in a loss of $470,000 and a gain of $824,000, in fiscal years ended June 30, 2023 and 2022, 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, 2023 and 2022, 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, 2023 and 2022, 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 consolidated balance sheets. 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 $73.2 million as of June 30, 2023 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. One customer, who is also a partner, accounted for 20% and 21% of total revenue for the years ended June 30, 2023 and 2022, 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 a range of 18% to 22% of accounts receivable as of June 30, 2023. A set 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 collectability 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. Recovered written off receivables are recorded as they occur. In certain revenue 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 $1.7 million and $770,000 as of June 30, 2023 and 2022, respectively, and are included in the accounts receivable, less allowance for doubtful accounts, balance on the accompanying consolidated balance sheets. Our accounts receivable, net balance was $31.6 million and $27.0 million for the year ended June 30, 2023 and 2022, respectively. Our combined contract liabilities, which consist of both current and non-current deferred revenue for which we have an obligation to transfer services to customers and have received considerations in advance or the amount is due from customers, balance was $49.9 million and $49.4 million for the year ended June 30, 2023 and 2022, respectively. There were no contract assets for the years ended June 30, 2023 and 2022. 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 three Goodwill 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. We operate under a single reporting unit and accordingly, all of our goodwill is associated with the entire company. We had no indicators of impairment for fiscal years ended June 30, 2023 and 2022. 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 ended June 30, 2023 and 2022, 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, including stock-based compensation. 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, 2023 and 2022. During the fiscal years ended June 30, 2023 and 2022, we capitalized $462,000 and $2.4 million of costs to obtain revenue contracts, respectively, and amortized $1.5 million to sales and marketing expense each period. Capitalized costs to obtain revenue contracts, net were $3.6 million and $4.6 million as of June 30, 2023 and 2022, 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 ROU 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 ROU 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 ROU 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 consolidated balance sheets. 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 Advertising Costs We expense advertising costs as incurred. Total advertising expenses for the fiscal years ended June 30, 2023 and 2022 were $686,000 and $554,000, respectively. Stock-Based Compensation We account for stock-based compensation in accordance with ASC 718, Compensation—Stock Compensation Income Taxes Income taxes are accounted for using the asset and liability method in accordance with ASC 740, Income Taxes. 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, 2023, utilization of the net operating loss (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. The Company has not identified a change in ownership as of June 30, 2023 that would significantly limit the net operating loss carryovers. Comprehensive Income (Loss) We report comprehensive income and its components in accordance with ASC 220, Comprehensive Income Earnings (Loss) Per Share Basic earnings (loss) per 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 stock options in-the-money to calculate diluted net income per share. The following table represents the calculation of basic and diluted net income (loss) per common share (in thousands, except per share data): Years Ended June 30, 2023 2022 Net income (loss) $ 2,109 $ (2,441) Per share information: Earnings (loss) per share: Basic $ 0.07 $ (0.08) Diluted $ 0.06 $ (0.08) Weighted-average shares used in computation: Basic 31,959 31,553 Diluted 32,799 31,553 Weighted average options to purchase 3,582,284 and 2,935,174 shares of common stock as of June 30, 2023 and 2022, respectively, were not included in the computation of diluted net income per 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 Information relating to our geographic areas for the fiscal years ended June 30, 2023 and 2022 is as follows (in thousands): Income Total (Loss) Long-Lived Revenue from Operations Assets Year ended June 30, 2023: North America $ 76,375 $ 1,976 $ 358 Europe, Middle East, & Africa 21,636 5,830 131 Asia Pacific — (6,417) 144 $ 98,011 $ 1,389 $ 633 Year ended June 30, 2022: North America $ 66,793 $ (4,128) $ 488 Europe, Middle East, & Africa 25,158 8,997 119 Asia Pacific — (7,007) 224 $ 91,951 $ (2,138) $ 831 For the purposes of entity-wide geographic area disclosures, long-lived assets consist of computers and equipment, furniture and fixtures, and leasehold improvements, net of accumulated depreciation and amortization. These items are included in property and equipment, net, on the accompanying Company’s consolidated balance sheets. Recent Accounting Pronouncements Pronouncements Not Yet Adopted In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 an 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. 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, training, and managed services. 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 based on 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 licenses which incorporate on-premise software licenses and a subscription to a substantial cloud functionalities. 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 usage-based licenses of intellectual property, for which the guidance in paragraph ASC 606-10-55-65 applies, the Company estimate revenue recognized only as the performance obligation of the OEM royalties has been satisfied or partially satisfied. Differences between actual results and estimated amounts are adjusted in the following period as such sales are reported by the customer with a quarter in arrears. Professional Services Revenue Professional services revenue includes system implementation, consulting, training, and managed services. The transaction price is allocated to various performance obligations based on their SSP. 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. Managed services include a comprehensive set of processes and activities that range from implementation to monitoring the evolution and support of eGain solutions in a company. Our consulting and implementation service contracts are bid either on a time-and-material basis or on a fixed-fee basis. Managed services contracts are bid on a time-and-material basis. Fixed fees are generally paid upon milestone billing or customer 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. |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Jun. 30, 2023 | |
Text Block [Abstract] | |
Balance Sheet Components | 2. BALANCE SHEET COMPONENTS Property and equipment, net consists of the following: As of June 30, 2023 2022 (in thousands) Computers and equipment $ 3,886 $ 4,174 Furniture and fixtures 963 933 Leasehold improvements 655 600 Total 5,504 5,707 Accumulated depreciation and amortization (4,871) (4,876) Property and equipment, net $ 633 $ 831 Depreciation and amortization expense was $490,000 and $478,000 for the fiscal years ended June 30, 2023 and 2022, respectively. Disposed fixed assets, which were substantially fully-depreciated, were $516,000 and $71,000 for the fiscal years ended June 30, 2023, and June 30, 2022, respectively. Accrued compensation consists of the following: As of June 30, 2023 2022 (in thousands) Accrued bonuses $ 3,068 $ 3,716 Accrued vacation 2,715 2,956 Payroll and other employee related costs 1,688 1,477 Accrued commissions 226 559 Accrued compensation $ 7,697 $ 8,708 Accrued liabilities consists of the following: As of June 30, 2023 2022 (in thousands) Customer advances $ 109 $ 329 Sales tax payable 1,017 936 VAT liability 927 1,191 Accrued other liabilities 3,334 2,470 Accrued liabilities $ 5,387 $ 4,926 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Jun. 30, 2023 | |
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, 2023 and 2022, respectively: Fiscal Year Ended June 30, 2023 2022 (in thousands) Revenue: SaaS revenue $ 89,619 $ 80,904 Legacy revenue 705 3,653 Total subscription 90,324 84,557 Professional services 7,687 7,394 Total revenue $ 98,011 $ 91,951 The following table presents our revenue recognized over-time and at a point-in-time during the fiscal years ended June 30, 2023 and 2022, respectively: Fiscal Year Ended June 30, 2023 2022 (in thousands) Revenue: Over-time $ 86,066 $ 81,937 Point-in-time 11,945 10,014 Total revenue $ 98,011 $ 91,951 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, 2023 2022 (in thousands) Revenue: North America $ 76,375 $ 66,793 Europe, Middle East, & Africa 21,636 25,158 Total revenue $ 98,011 $ 91,951 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. Unbilled receivables are included in accounts receivable, less allowance for doubtful accounts on our consolidated balance sheets. 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. The following table presents the changes in contract liabilities (in thousands): Balance as of June 30, 2023 ($) Balance as of June 30, 2022 ($) Contract liabilities: Deferred revenue 47,762 45,638 Deferred revenue, net of current portion 2,101 3,785 $38.2 million of deferred revenue as of June 30, 2022 was recognized as revenue during the fiscal year ended June 30, 2023. $41.4 million of deferred revenue as of June 30, 2021 was recognized as revenue during the fiscal year ended June 30, 2022. Remaining Performance Obligations Remaining performance obligations represent contracted revenue that had not yet been recognized, and include billed deferred revenue, consisting of amounts invoiced to customers whether collected or uncollected which have not been recognized as revenue, as well as unbilled amounts that will be invoiced and recognized as revenue 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 exchange rates. As of June 30, 2023, our remaining performance obligations were $97.3 million of which we expect to recognize $66.7 million and $30.6 million as revenue within one year and beyond one year, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2023 | |
Income Taxes | |
Income Taxes | 4. INCOME TAXES Income (Loss) before income tax provision consisted of the following (in thousands): Fiscal Year Ended June 30, 2023 2022 United States $ (460) $ (4,214) Foreign 3,816 3,008 Income (Loss) before income tax provision $ 3,356 $ (1,206) The reconciliation of income tax expense at the statutory federal income tax rate and the Company’s effective tax rate is as follows (in thousands): Fiscal Year Ended June 30, 2023 2022 Federal statutory income tax rate $ (705) $ 253 Current state taxes, net of federal benefit 1,152 134 Foreign rate differential 559 98 Research and development credits 747 433 Foreign withholding tax (27) (63) Stock-based compensation (136) (102) Deferred return to provision (284) (213) Other items (118) (12) Net change in valuation allowance (1,726) 3,079 Foreign income (709) — Expiration of tax attributes — (4,842) Income tax provision $ (1,247) $ (1,235) The components of the income tax provision are as follows (in thousands): Fiscal Year Ended June 30, 2023 2022 Current provision: Federal $ — $ — State (576) (350) Foreign (1,221) (586) Total current: (1,797) (936) Deferred: Federal — — State — — Foreign 550 (299) Total deferred: 550 (299) Income tax provision $ (1,247) $ (1,235) As of June 30, 2023, we had federal and state net operating loss carryforwards of approximately $38.9 million and $13.0 million, respectively. The net operating loss carryforwards will expire at various dates beginning in fiscal year ending June 30, 2027, if not utilized. We also had federal research and development credit carryforwards of approximately $4.3 million as of June 30, 2023, which will expire at various dates beginning in fiscal year ending June 30, 2025, if not utilized. The California research and development credit carryforwards are approximately $6.4 million as of June 30, 2023 and have an indefinite carryover period. As of June 30, 2023, 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. As of June 30, 2023, the Company did not identify any ownership change that would significantly limit the net operating loss carryovers. 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, 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 9,115 $ 14,637 Research credits 9,404 8,321 Deferred revenue 898 1,036 Stock-based compensation 4,500 2,899 Accruals and reserves 1,126 6,057 Lease liability 563 664 Other 152 104 Capitalized research and development 10,088 — Gross deferred tax assets 35,846 33,718 Less valuation allowance (34,139) (32,412) Net deferred tax assets $ 1,707 $ 1,306 Gross deferred tax liabilities Right-of-use asset $ (601) $ (723) Fixed assets (42) (69) Gross deferred tax liabilities (643) (792) Total deferred tax assets, net * $ 1,064 $ 514 *included in other assets, net, on consolidated balance sheets ASC 740, Income Taxes The net valuation allowance increased by $1.7 million and decreased by $3.1 million for the fiscal years ended June 30, 2023 and 2022, respectively. We have not provided for taxes on $24.6 million of undistributed earnings of our foreign subsidiaries as of June 30, 2023. 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. For the fiscal years ended June 30, 2023 and 2022, we have $3.4 million and none of Global Intangible Low Tax Income (GILTI) inclusion and used our net operating losses to offset our taxable income, respectively. Uncertain Tax Positions The aggregate changes in the balance of our gross unrecognized tax benefits during fiscal years 2023 and 2022 were as follows (in thousands): Fiscal Year Ended June 30, 2023 2022 Beginning balance $ 1,556 $ 1,762 Increases in balances related to tax positions taken during current periods 130 89 Expired Attributes (135) (295) Ending balance $ 1,551 $ 1,556 There is no amount of unrecognized tax benefit, if recognized currently, that would impact the Company’s effective tax rate as of June 30, 2023 and 2022, 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 2002 and 2016 remain subject to examination by the appropriate governmental agencies due to tax loss carryovers from those years. For U.S. tax purposes, tax years after 2016 are subject to a three year statute of limitations. 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, 2023 | |
Stockholders Equity | |
Stockholders' Equity | 5. STOCKHOLDERS’ EQUITY On December 8, 2021, our board of directors authorized the amended and restated Certificate of Incorporation which increased the total authorized shares of common stock from 50,000,000 to 60,000,000 shares. As of June 30, 2023, and 2022, the Company had 32,268,000 and 31,930,000 shares of common stock issued, respectively, and 31,482,000 and 31,930,000 shares of common stock outstanding, respectively. Common Stock We have reserved shares of common stock for issuance as of June 30, 2023 as follows: Reserved Stock Options Stock options outstanding 4,885,999 Stock available for future grants or issuance: 2005 Stock Incentive Plan 1,057,983 2005 Management Stock Option Plan 71,983 2017 Employee Stock Purchase Plan 938,403 Total reserved shares of common stock for issuance 6,954,368 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, 2023 and 2022, 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. Stock-Based Compensation We account for stock-based compensation in accordance with ASC 718, Compensation—Stock Compensation 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 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, 2021 68,649 1,172,517 $ 3.51 Options Granted — — $ — Options Exercised — (342,466) $ 4.08 Options Forfeited / Expired 3,334 (3,334) $ 1.75 Balance as of June 30, 2022 71,983 826,717 $ 3.29 Options Granted — — $ — Options Exercised — — $ — Options Forfeited / Expired — — $ — Balance as of June 30, 2023 71,983 826,717 $ 3.29 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, 2021 944,527 1,562,995 $ 6.44 Shares Added 3,000,000 — $ — Options Granted (3,607,661) 3,607,661 $ 11.18 Options Exercised — (210,521) $ 3.52 Options Forfeited / Expired 342,924 (342,924) $ 10.75 Balance as of June 30, 2022 679,790 4,617,211 Options Granted (228,817) 228,817 $ 8.35 Options Exercised — (179,736) $ 3.40 Options Forfeited / Expired 607,010 (607,010) $ 10.62 Balance as of June 30, 2023 1,057,983 4,059,282 $ 10.06 During the fiscal year ended June 30, 2023, we granted 8,800 stock options to consultants. The following table summarizes information about stock options outstanding and exercisable under all stock option plans as of June 30, 2023: 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 $1.8-$2.13 13,005 3.65 $ 1.81 13,005 $ 1.81 $2.50 902,375 3.37 $ 2.50 902,375 $ 2.50 $3.4-$7.77 496,803 3.91 $ 5.76 421,833 $ 5.50 $7.8-$9.86 492,483 7.10 $ 8.82 315,140 $ 8.65 $9.87-$11.26 238,843 7.29 $ 10.59 108,497 $ 10.62 $11.36 2,476,541 8.02 $ 11.36 1,104,884 $ 11.36 $11.47-$13.75 247,399 6.18 $ 12.47 172,587 $ 12.70 $14.28 5,000 7.21 $ 14.28 3,437 $ 14.28 $14.40 3,550 5.12 $ 14.40 3,550 $ 14.40 $19.11 10,000 7.29 $ 19.11 6,666 $ 19.11 $1.8-$19.11 4,885,999 6.51 $ 8.91 3,051,974 $ 7.68 The summary of options vested and exercisable as of June 30, 2023 comprised: Weighted Average Weighted Aggregate Remaining Number of Average Intrinsic Contractual Shares Exercise Price Value Term Options outstanding 4,885,999 $ 8.91 $ 5,446,956 6.51 Options fully vested and expected to vest 4,699,430 $ 8.84 $ 5,443,504 6.44 Options exercisable 3,051,974 $ 7.68 $ 5,425,564 5.48 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 $7.49 as of June 30, 2023 that would have been received by the option holders, had they exercised their options on June 30, 2023. The total intrinsic value of stock options exercised was $866,000 and $4.3 million during fiscal years 2023 and 2022, respectively. 2017 Employee Stock Purchase Plan In October 2017, our board of directors adopted the 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. On December 17, 2021, our board of directors authorized an additional 600,000 shares of common stock to be available for issuance under ESPP. 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, 2023 2022 Non-cash stock-based compensation expense $ (6,246) $ (11,380) Income tax expense (117) (217) Net income effect $ (6,363) $ (11,597) The Company recognized $117,000 and $217,000 of tax expense related to stock-based compensation expense for eGain UK and Exony for the fiscal years ended June 30, 2023 and 2022, 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 $140,000 and $232,000 during the fiscal years ended June 30, 2023 and 2022, 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, 2023 and 2022, there were 228,817 and 3,607,661 options granted, respectively, with a weighted average grant date fair value of $4.56 and $5.83, per share, respectively. We used the following assumptions as inputs into the Black-Scholes valuation model to estimate the fair value of the options granted: Fiscal Year Ended June 30, 2023 2022 Dividend yield — — Expected volatility 64 % 70 % Average risk-free interest rate 3.57 % 1.01 % Expected life (in years) 4.71 4.68 We used the following assumptions as inputs into the Black-Scholes valuation model to estimate the fair value of the ESPP stock purchase right: Fiscal Year Ended June 30, 2023 2022 Dividend yield — — Expected volatility 60 % 57 % Average risk-free interest rate 1.68 % 1.22 % Expected term (in years) 0.50 0.50 During the fiscal years ended June 30, 2023 and 2022,employees were granted the right and purchased an aggregate of 158,957 and 145,715 shares, respectively, with a weighted average grant date fair value of $2.54 and $2.96, per share, respectively, pursuant to the ESPP. Total stock-based compensation expense related to those purchase rights was $399,000 and $457,000 for the fiscal years ended June 30, 2023 and 2022, respectively. As of June 30, 2023 unrecognized compensation expense related to purchase rights that will be recognized over a weighted average period of 0.42 years was $143,000. 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 The following table summarizes stock-based compensation expense relating to stock options for the years ended June 30, 2023 and 2022, respectively (in thousands): Fiscal Year Ended June 30, 2023 2022 Cost of revenue $ 1,350 $ 2,916 Research and development 1,833 2,797 Sales and marketing 901 2,248 General and administrative 1,763 2,962 Total $ 5,847 $ 10,923 Total unamortized compensation cost, net of forfeitures, for all options granted but not yet vested as of June 30, 2023 was $4.4 million which is expected to be recognized over the weighted average period of 1.23 years. |
Leases
Leases | 12 Months Ended |
Jun. 30, 2023 | |
Leases | |
Leases | 6. LEASES During our fiscal year ended June 30, 2023, we leased our office facilities under non-cancelable operating leases that expire on various dates through the fiscal year 2027. All of our office leases are classified as operating leases with lease expense recognized on a straight-line basis over the lease term. Lease ROU assets and liabilities are recognized on 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 to determine 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, 2023 As of June 30, 2022 Weighted average remaining lease term (in years) 3.40 4.05 Weighted average discount rate 4.97 % 4.92 % The following table presents information about leases on our consolidated statement of operations (in thousands): Years ended June 30, 2023 2022 Operating lease expense $ 1,284 $ 1,346 The following table presents supplemental cash flow information about our leases (in thousands): Years ended June 30, 2023 2022 Operating cash outflows from operating leases $ 1,215 $ 1,691 Right-of-use assets obtained in exchange for new operating lease liabilities — — As of June 30, 2023 , remaining maturities of lease liabilities are as follows (in thousands): Fiscal Period: Fiscal 2024 $ 935 Fiscal 2025 668 Fiscal 2026 688 Fiscal 2027 528 Total minimum lease payments 2,819 Less: Imputed interest (225) Total operating lease liabilities 2,594 Less: Current operating lease liabilities (832) Total operating lease liabilities, net of current portion $ 1,762 |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Jun. 30, 2023 | |
Commitments And Contingencies | |
Commitments And Contingencies | 7. 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 2023 and 2022, we contributed approximately $841,000 and $704,000 to the 401(k) Plan, respectively. We also have a defined contribution plan related to our foreign subsidiaries. Amounts expensed under this plan were $748,000 and $787,000, for the fiscal years ended June 30, 2023 and 2022, 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 $144,000 and $120,000, for the fiscal years ended June 30, 2023 and 2022, respectively. 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 Our principal contractual commitments consist of obligations under leases for office space. Lease agreements are evaluated to determine whether an arrangement is or contains a lease in accordance with ASC 842, Leases Contractual agreements with third parties consist of software licenses, maintenance and support for our operations. As of June 30, 2023, 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, 2023 and 2022. |
Litigation
Litigation | 12 Months Ended |
Jun. 30, 2023 | |
Text Block [Abstract] | |
LITIGATION | 8. 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 on our business or our consolidated financial statements. 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, 2023 | |
Fair Value Measurement | |
Fair Value Measurement | 9. FAIR VALUE MEASUREMENT ASC 820, Fair Value Measurement, 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, 2023 and 2022, cash equivalents classified as level 1 instruments, including money market account investments, were measured at $67.3 million and $57.9 million, respectively. |
Share Repurchase Program
Share Repurchase Program | 12 Months Ended |
Jun. 30, 2023 | |
Stockholders Equity | |
Share Repurchase Program | 10. SHARE REPURCHASE PROGRAM On November 14, 2022, the Company’s Board of Directors authorized a stock repurchase program under which we may purchase up to $20.0 million of our outstanding common stock. As of June 30, 2023, approximately $14.2 million remained available for stock repurchases pursuant to our stock repurchase program. Under the stock repurchase program, we may purchase shares of common stock on a discretionary basis from time to time through open market transactions or privately negotiated transactions at prices deemed appropriate by us. In addition, at our discretion, open market repurchase of common stock may also be made under a Rule 10b5-1 plan, which would permit common stock to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws or self-imposed trading restrictions. The timing and number of shares repurchased will be determined based on an evaluation of market conditions and other factors, including stock price, trading volume, general business and market conditions, and the availability of capital. The stock repurchase program is effective immediately on November 14, 2022, has a term of one year from adoption unless extended, does not obligate us to acquire a specified number of shares and may be modified, suspended, or discontinued at any time at our discretion without notice. The stock repurchase program will be funded using existing cash or future cash flows. During the year ended June 30, 2023, 785,913 shares have been repurchased for an average acquisition cost per share of $7.33, totaling $5.8 million. We intend to reissue repurchased shares at a later date and therefore carry the shares as treasury stock at cost. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Jun. 30, 2023 | |
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, 2023 and 2022, respectively: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Fiscal Year (in thousands, except per share data) Fiscal Year 2023 Revenue $ 24,763 $ 25,600 $ 23,013 $ 24,635 $ 98,011 Gross profit $ 18,481 $ 18,848 $ 15,418 $ 17,949 $ 70,696 Income (loss) from operations $ (670) $ 213 $ (512) $ 2,358 $ 1,389 Net income (loss) $ (16) $ (104) $ (372) $ 2,601 $ 2,109 Basic net income (loss) per share $ (0.00) $ (0.00) $ (0.01) $ 0.08 $ 0.07 Diluted net income (loss) per share $ (0.00) $ (0.00) $ (0.01) $ 0.08 $ 0.06 Fiscal Year 2022 Revenue $ 21,451 $ 23,093 $ 23,904 $ 23,503 $ 91,951 Gross profit $ 16,153 $ 16,992 $ 17,367 $ 16,902 $ 67,414 Income (loss) from operations $ 691 $ (630) $ (476) $ (1,723) $ (2,138) Net income (loss) $ 551 $ (826) $ (615) $ (1,551) $ (2,441) Basic net income (loss) per share $ 0.02 $ (0.03) $ (0.02) $ (0.05) $ (0.08) Diluted net income (loss) per share $ 0.02 $ (0.03) $ (0.02) $ (0.05) $ (0.08) |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 30, 2023 | |
Schedule II - Valuation and Qualifying Accounts | |
Schedule II - Valuation and Qualifying Accounts | SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS Years Ended June 30, 2023 and 2022 (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, 2023 $ 123 $ 260 $ (146) $ 237 Year ended June 30, 2022 $ 434 $ 68 $ (379) $ 123 |
Summary of Business and Signi_2
Summary of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
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 knowledge hub, powered by conversational artificial intelligence (AI) and analytics. We sell mostly to large enterprises across financial services, telecommunications, retail, government, healthcare, and utilities seeking to better serve customers at scale while coping with content silos, process complexity, and regulatory compliance. With our mantra of AX + BX + CX = DX™ 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), 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 loss. Foreign currency transaction gains and losses are included in “other (expense) income, net” in the consolidated statements of operations, and resulted in a loss of $470,000 and a gain of $824,000, in fiscal years ended June 30, 2023 and 2022, 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, 2023 and 2022, 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, 2023 and 2022, 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 | 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 consolidated balance sheets. 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 $73.2 million as of June 30, 2023 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. One customer, who is also a partner, accounted for 20% and 21% of total revenue for the years ended June 30, 2023 and 2022, 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 a range of 18% to 22% of accounts receivable as of June 30, 2023. A set |
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 collectability 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. Recovered written off receivables are recorded as they occur. In certain revenue 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 $1.7 million and $770,000 as of June 30, 2023 and 2022, respectively, and are included in the accounts receivable, less allowance for doubtful accounts, balance on the accompanying consolidated balance sheets. Our accounts receivable, net balance was $31.6 million and $27.0 million for the year ended June 30, 2023 and 2022, respectively. Our combined contract liabilities, which consist of both current and non-current deferred revenue for which we have an obligation to transfer services to customers and have received considerations in advance or the amount is due from customers, balance was $49.9 million and $49.4 million for the year ended June 30, 2023 and 2022, respectively. There were no contract assets for the years ended June 30, 2023 and 2022. |
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 three |
Goodwill | Goodwill 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. We operate under a single reporting unit and accordingly, all of our goodwill is associated with the entire company. We had no indicators of impairment for fiscal years ended June 30, 2023 and 2022. |
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 ended June 30, 2023 and 2022, we did not have any such impairment losses. |
Deferred Revenue | 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 | 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, including stock-based compensation. 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, 2023 and 2022. During the fiscal years ended June 30, 2023 and 2022, we capitalized $462,000 and $2.4 million of costs to obtain revenue contracts, respectively, and amortized $1.5 million to sales and marketing expense each period. Capitalized costs to obtain revenue contracts, net were $3.6 million and $4.6 million as of June 30, 2023 and 2022, 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 ROU 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 ROU 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 ROU 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 consolidated balance sheets. 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 |
Advertising Costs | Advertising Costs We expense advertising costs as incurred. Total advertising expenses for the fiscal years ended June 30, 2023 and 2022 were $686,000 and $554,000, respectively. |
Stock-Based Compensation | Stock-Based Compensation We account for stock-based compensation in accordance with ASC 718, Compensation—Stock Compensation |
Income Taxes | Income Taxes Income taxes are accounted for using the asset and liability method in accordance with ASC 740, Income Taxes. 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, 2023, utilization of the net operating loss (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. The Company has not identified a change in ownership as of June 30, 2023 that would significantly limit the net operating loss carryovers. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) We report comprehensive income and its components in accordance with ASC 220, Comprehensive Income |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) per 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 stock options in-the-money to calculate diluted net income per share. The following table represents the calculation of basic and diluted net income (loss) per common share (in thousands, except per share data): Years Ended June 30, 2023 2022 Net income (loss) $ 2,109 $ (2,441) Per share information: Earnings (loss) per share: Basic $ 0.07 $ (0.08) Diluted $ 0.06 $ (0.08) Weighted-average shares used in computation: Basic 31,959 31,553 Diluted 32,799 31,553 Weighted average options to purchase 3,582,284 and 2,935,174 shares of common stock as of June 30, 2023 and 2022, respectively, were not included in the computation of diluted net income per 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 Information relating to our geographic areas for the fiscal years ended June 30, 2023 and 2022 is as follows (in thousands): Income Total (Loss) Long-Lived Revenue from Operations Assets Year ended June 30, 2023: North America $ 76,375 $ 1,976 $ 358 Europe, Middle East, & Africa 21,636 5,830 131 Asia Pacific — (6,417) 144 $ 98,011 $ 1,389 $ 633 Year ended June 30, 2022: North America $ 66,793 $ (4,128) $ 488 Europe, Middle East, & Africa 25,158 8,997 119 Asia Pacific — (7,007) 224 $ 91,951 $ (2,138) $ 831 For the purposes of entity-wide geographic area disclosures, long-lived assets consist of computers and equipment, furniture and fixtures, and leasehold improvements, net of accumulated depreciation and amortization. These items are included in property and equipment, net, on the accompanying Company’s consolidated balance sheets. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Pronouncements Not Yet Adopted In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 an 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. |
Summary of Business and Signi_3
Summary of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Summary of Business and Significant Accounting Policies | |
Schedule of Calculation of Basic and Diluted Net Loss Per Share | The following table represents the calculation of basic and diluted net income (loss) per common share (in thousands, except per share data): Years Ended June 30, 2023 2022 Net income (loss) $ 2,109 $ (2,441) Per share information: Earnings (loss) per share: Basic $ 0.07 $ (0.08) Diluted $ 0.06 $ (0.08) Weighted-average shares used in computation: Basic 31,959 31,553 Diluted 32,799 31,553 |
Schedule of Segment Information | Information relating to our geographic areas for the fiscal years ended June 30, 2023 and 2022 is as follows (in thousands): Income Total (Loss) Long-Lived Revenue from Operations Assets Year ended June 30, 2023: North America $ 76,375 $ 1,976 $ 358 Europe, Middle East, & Africa 21,636 5,830 131 Asia Pacific — (6,417) 144 $ 98,011 $ 1,389 $ 633 Year ended June 30, 2022: North America $ 66,793 $ (4,128) $ 488 Europe, Middle East, & Africa 25,158 8,997 119 Asia Pacific — (7,007) 224 $ 91,951 $ (2,138) $ 831 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Text Block [Abstract] | |
Schedule of Property and Equipment, Net | As of June 30, 2023 2022 (in thousands) Computers and equipment $ 3,886 $ 4,174 Furniture and fixtures 963 933 Leasehold improvements 655 600 Total 5,504 5,707 Accumulated depreciation and amortization (4,871) (4,876) Property and equipment, net $ 633 $ 831 |
Summary of Accrued Compensation | As of June 30, 2023 2022 (in thousands) Accrued bonuses $ 3,068 $ 3,716 Accrued vacation 2,715 2,956 Payroll and other employee related costs 1,688 1,477 Accrued commissions 226 559 Accrued compensation $ 7,697 $ 8,708 |
Summary of Accrued Liabilities | As of June 30, 2023 2022 (in thousands) Customer advances $ 109 $ 329 Sales tax payable 1,017 936 VAT liability 927 1,191 Accrued other liabilities 3,334 2,470 Accrued liabilities $ 5,387 $ 4,926 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Revenue Recognition | |
Schedule of Disaggregation of Revenue | Fiscal Year Ended June 30, 2023 2022 (in thousands) Revenue: SaaS revenue $ 89,619 $ 80,904 Legacy revenue 705 3,653 Total subscription 90,324 84,557 Professional services 7,687 7,394 Total revenue $ 98,011 $ 91,951 Fiscal Year Ended June 30, 2023 2022 (in thousands) Revenue: Over-time $ 86,066 $ 81,937 Point-in-time 11,945 10,014 Total revenue $ 98,011 $ 91,951 |
Schedule of Revenue by Geographic Area | Fiscal Year Ended June 30, 2023 2022 (in thousands) Revenue: North America $ 76,375 $ 66,793 Europe, Middle East, & Africa 21,636 25,158 Total revenue $ 98,011 $ 91,951 |
Schedule of Changes in Contract Liabilities | The following table presents the changes in contract liabilities (in thousands): Balance as of June 30, 2023 ($) Balance as of June 30, 2022 ($) Contract liabilities: Deferred revenue 47,762 45,638 Deferred revenue, net of current portion 2,101 3,785 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Text Block [Abstract] | |
Schedule of Income Before Income Taxes | Income (Loss) before income tax provision consisted of the following (in thousands): Fiscal Year Ended June 30, 2023 2022 United States $ (460) $ (4,214) Foreign 3,816 3,008 Income (Loss) before income tax provision $ 3,356 $ (1,206) |
Reconciliation of Federal Statutory Tax Rate to Effective Tax Rate | The reconciliation of income tax expense at the statutory federal income tax rate and the Company’s effective tax rate is as follows (in thousands): Fiscal Year Ended June 30, 2023 2022 Federal statutory income tax rate $ (705) $ 253 Current state taxes, net of federal benefit 1,152 134 Foreign rate differential 559 98 Research and development credits 747 433 Foreign withholding tax (27) (63) Stock-based compensation (136) (102) Deferred return to provision (284) (213) Other items (118) (12) Net change in valuation allowance (1,726) 3,079 Foreign income (709) — Expiration of tax attributes — (4,842) Income tax provision $ (1,247) $ (1,235) |
Schedule of Components of Income Tax (Benefit) Provision | The components of the income tax provision are as follows (in thousands): Fiscal Year Ended June 30, 2023 2022 Current provision: Federal $ — $ — State (576) (350) Foreign (1,221) (586) Total current: (1,797) (936) Deferred: Federal — — State — — Foreign 550 (299) Total deferred: 550 (299) Income tax provision $ (1,247) $ (1,235) |
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, 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 9,115 $ 14,637 Research credits 9,404 8,321 Deferred revenue 898 1,036 Stock-based compensation 4,500 2,899 Accruals and reserves 1,126 6,057 Lease liability 563 664 Other 152 104 Capitalized research and development 10,088 — Gross deferred tax assets 35,846 33,718 Less valuation allowance (34,139) (32,412) Net deferred tax assets $ 1,707 $ 1,306 Gross deferred tax liabilities Right-of-use asset $ (601) $ (723) Fixed assets (42) (69) Gross deferred tax liabilities (643) (792) Total deferred tax assets, net * $ 1,064 $ 514 *included in other assets, net, on consolidated balance sheets |
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 2023 and 2022 were as follows (in thousands): Fiscal Year Ended June 30, 2023 2022 Beginning balance $ 1,556 $ 1,762 Increases in balances related to tax positions taken during current periods 130 89 Expired Attributes (135) (295) Ending balance $ 1,551 $ 1,556 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Summary of Reserved Shares of Common Stock for Issuance | We have reserved shares of common stock for issuance as of June 30, 2023 as follows: Reserved Stock Options Stock options outstanding 4,885,999 Stock available for future grants or issuance: 2005 Stock Incentive Plan 1,057,983 2005 Management Stock Option Plan 71,983 2017 Employee Stock Purchase Plan 938,403 Total reserved shares of common stock for issuance 6,954,368 |
Summary of Stock Options Outstanding and Exercisable under All Stock Option Plans | The following table summarizes information about stock options outstanding and exercisable under all stock option plans as of June 30, 2023: 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 $1.8-$2.13 13,005 3.65 $ 1.81 13,005 $ 1.81 $2.50 902,375 3.37 $ 2.50 902,375 $ 2.50 $3.4-$7.77 496,803 3.91 $ 5.76 421,833 $ 5.50 $7.8-$9.86 492,483 7.10 $ 8.82 315,140 $ 8.65 $9.87-$11.26 238,843 7.29 $ 10.59 108,497 $ 10.62 $11.36 2,476,541 8.02 $ 11.36 1,104,884 $ 11.36 $11.47-$13.75 247,399 6.18 $ 12.47 172,587 $ 12.70 $14.28 5,000 7.21 $ 14.28 3,437 $ 14.28 $14.40 3,550 5.12 $ 14.40 3,550 $ 14.40 $19.11 10,000 7.29 $ 19.11 6,666 $ 19.11 $1.8-$19.11 4,885,999 6.51 $ 8.91 3,051,974 $ 7.68 |
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 $1.8-$2.13 13,005 3.65 $ 1.81 13,005 $ 1.81 $2.50 902,375 3.37 $ 2.50 902,375 $ 2.50 $3.4-$7.77 496,803 3.91 $ 5.76 421,833 $ 5.50 $7.8-$9.86 492,483 7.10 $ 8.82 315,140 $ 8.65 $9.87-$11.26 238,843 7.29 $ 10.59 108,497 $ 10.62 $11.36 2,476,541 8.02 $ 11.36 1,104,884 $ 11.36 $11.47-$13.75 247,399 6.18 $ 12.47 172,587 $ 12.70 $14.28 5,000 7.21 $ 14.28 3,437 $ 14.28 $14.40 3,550 5.12 $ 14.40 3,550 $ 14.40 $19.11 10,000 7.29 $ 19.11 6,666 $ 19.11 $1.8-$19.11 4,885,999 6.51 $ 8.91 3,051,974 $ 7.68 |
Summary of Effect of Stock Based Compensation | Fiscal Year Ended June 30, 2023 2022 Non-cash stock-based compensation expense $ (6,246) $ (11,380) Income tax expense (117) (217) Net income effect $ (6,363) $ (11,597) |
Summary of Stock Option Assumptions | Fiscal Year Ended June 30, 2023 2022 Dividend yield — — Expected volatility 64 % 70 % Average risk-free interest rate 3.57 % 1.01 % Expected life (in years) 4.71 4.68 |
2005 Management Stock Option Plan | |
Summary of Plan Activity | Shares Weighted Available for Options Average Grant Outstanding Exercise Price Balance as of June 30, 2021 68,649 1,172,517 $ 3.51 Options Granted — — $ — Options Exercised — (342,466) $ 4.08 Options Forfeited / Expired 3,334 (3,334) $ 1.75 Balance as of June 30, 2022 71,983 826,717 $ 3.29 Options Granted — — $ — Options Exercised — — $ — Options Forfeited / Expired — — $ — Balance as of June 30, 2023 71,983 826,717 $ 3.29 |
2005 Stock Incentive Plan | |
Summary of Plan Activity | Shares Weighted Available for Options Average Grant Outstanding Exercise Price Balance as of June 30, 2021 944,527 1,562,995 $ 6.44 Shares Added 3,000,000 — $ — Options Granted (3,607,661) 3,607,661 $ 11.18 Options Exercised — (210,521) $ 3.52 Options Forfeited / Expired 342,924 (342,924) $ 10.75 Balance as of June 30, 2022 679,790 4,617,211 Options Granted (228,817) 228,817 $ 8.35 Options Exercised — (179,736) $ 3.40 Options Forfeited / Expired 607,010 (607,010) $ 10.62 Balance as of June 30, 2023 1,057,983 4,059,282 $ 10.06 |
Stock Options | |
Summary of Effect of Stock Based Compensation | Fiscal Year Ended June 30, 2023 2022 Cost of revenue $ 1,350 $ 2,916 Research and development 1,833 2,797 Sales and marketing 901 2,248 General and administrative 1,763 2,962 Total $ 5,847 $ 10,923 |
Employee Stock Purchase Plan (ESPP) | |
Summary of Employee Stock Purchase Plan (ESPP) assumptions | Fiscal Year Ended June 30, 2023 2022 Dividend yield — — Expected volatility 60 % 57 % Average risk-free interest rate 1.68 % 1.22 % Expected term (in years) 0.50 0.50 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Leases | |
Schedule of lease information | As of June 30, 2023 As of June 30, 2022 Weighted average remaining lease term (in years) 3.40 4.05 Weighted average discount rate 4.97 % 4.92 % The following table presents information about leases on our consolidated statement of operations (in thousands): Years ended June 30, 2023 2022 Operating lease expense $ 1,284 $ 1,346 |
Schedule of supplemental cash flow information related to leases | The following table presents supplemental cash flow information about our leases (in thousands): Years ended June 30, 2023 2022 Operating cash outflows from operating leases $ 1,215 $ 1,691 Right-of-use assets obtained in exchange for new operating lease liabilities — — |
Schedule of maturities of lease liabilities | As of June 30, 2023 , remaining maturities of lease liabilities are as follows (in thousands): Fiscal Period: Fiscal 2024 $ 935 Fiscal 2025 668 Fiscal 2026 688 Fiscal 2027 528 Total minimum lease payments 2,819 Less: Imputed interest (225) Total operating lease liabilities 2,594 Less: Current operating lease liabilities (832) Total operating lease liabilities, net of current portion $ 1,762 |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
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 2023 Revenue $ 24,763 $ 25,600 $ 23,013 $ 24,635 $ 98,011 Gross profit $ 18,481 $ 18,848 $ 15,418 $ 17,949 $ 70,696 Income (loss) from operations $ (670) $ 213 $ (512) $ 2,358 $ 1,389 Net income (loss) $ (16) $ (104) $ (372) $ 2,601 $ 2,109 Basic net income (loss) per share $ (0.00) $ (0.00) $ (0.01) $ 0.08 $ 0.07 Diluted net income (loss) per share $ (0.00) $ (0.00) $ (0.01) $ 0.08 $ 0.06 Fiscal Year 2022 Revenue $ 21,451 $ 23,093 $ 23,904 $ 23,503 $ 91,951 Gross profit $ 16,153 $ 16,992 $ 17,367 $ 16,902 $ 67,414 Income (loss) from operations $ 691 $ (630) $ (476) $ (1,723) $ (2,138) Net income (loss) $ 551 $ (826) $ (615) $ (1,551) $ (2,441) Basic net income (loss) per share $ 0.02 $ (0.03) $ (0.02) $ (0.05) $ (0.08) Diluted net income (loss) per share $ 0.02 $ (0.03) $ (0.02) $ (0.05) $ (0.08) |
Summary of Business and Signi_4
Summary of Business and Significant Accounting Policies - Foreign Currency (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Summary of Business and Significant Accounting Policies | ||
Foreign currency transaction gains (losses) | $ (470) | $ 824 |
Summary of Business and Signi_5
Summary of Business and Significant Accounting Policies - Concentration of Credit Risk and Accounts Receivable (Details) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 USD ($) customer item | Jun. 30, 2022 USD ($) customer | |
Concentration of Credit Risk | ||
Cash, cash equivalents and restricted cash | $ 73,200 | |
Contract receivables | ||
Accounts receivable, net | 31,569 | $ 26,961 |
Contract liabilities | 49,900 | 49,400 |
Contract assets | 0 | 0 |
Accounts Receivable | ||
Contract receivables | ||
Unbilled accounts receivable | $ 1,700 | $ 770 |
Sales | Customer Concentration Risk | ||
Concentration of Credit Risk | ||
Number of customers who are also partners that accounted for more than ten percent of total revenue | customer | 1 | 1 |
Sales | Customer Concentration Risk | Customer One | ||
Concentration of Credit Risk | ||
Concentration risk, percentage | 20% | 21% |
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 | 3 |
Accounts Receivable | Customer Concentration Risk | Minimum | ||
Concentration of Credit Risk | ||
Concentration risk, percentage | 18% | 13% |
Accounts Receivable | Customer Concentration Risk | Maximum | ||
Concentration of Credit Risk | ||
Concentration risk, percentage | 22% | 26% |
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, 2023 | Jun. 30, 2022 | |
Goodwill and other intangible assets | ||
Impairment of goodwill | $ 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, 2023 | Jun. 30, 2022 | |
Capitalized costs | ||
Contract cost capitalized during period | $ 462 | $ 2,400 |
Amortization of contract cost | 1,500 | 1,500 |
Costs capitalized to obtain revenue contracts | $ 3,600 | $ 4,600 |
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, 2023 | Jun. 30, 2022 | |
Summary of Business and Significant Accounting Policies | ||
Advertising Expense | $ 686 | $ 554 |
Summary of Business and Signi_9
Summary of Business and Significant Accounting Policies - (Loss) Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||||||||
Net income (loss) | $ 2,601 | $ (372) | $ (104) | $ (16) | $ (1,551) | $ (615) | $ (826) | $ 551 | $ 2,109 | $ (2,441) |
Per share information: | ||||||||||
Earnings (loss) per share: Basic | $ 0.08 | $ (0.01) | $ 0 | $ 0 | $ (0.05) | $ (0.02) | $ (0.03) | $ 0.02 | $ 0.07 | $ (0.08) |
Earnings (loss) per share: Diluted | $ 0.08 | $ (0.01) | $ 0 | $ 0 | $ (0.05) | $ (0.02) | $ (0.03) | $ 0.02 | $ 0.06 | $ (0.08) |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||||||||
Weighted average common shares used in computation: Basic | 31,959,000 | 31,553,000 | ||||||||
Weighted average common shares used in computation: Diluted | 32,799,000 | 31,553,000 | ||||||||
Stock Options | ||||||||||
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | ||||||||||
Antidilutive securities excluded from computation of earnings per share, share amount | 3,582,284 | 2,935,174 |
Summary of Business and Sign_10
Summary of Business and Significant Accounting Policies - Segment Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2023 USD ($) segment | Jun. 30, 2022 USD ($) segment | |
Segment Information | ||||||||||
Number of operating segments | segment | 1 | 1 | ||||||||
Revenue | $ 24,635 | $ 23,013 | $ 25,600 | $ 24,763 | $ 23,503 | $ 23,904 | $ 23,093 | $ 21,451 | $ 98,011 | $ 91,951 |
Income (loss) from operations | 2,358 | $ (512) | $ 213 | $ (670) | (1,723) | $ (476) | $ (630) | $ 691 | 1,389 | (2,138) |
Long-lived assets | 633 | 831 | 633 | 831 | ||||||
North America | ||||||||||
Segment Information | ||||||||||
Revenue | 76,375 | 66,793 | ||||||||
Income (loss) from operations | 1,976 | (4,128) | ||||||||
Long-lived assets | 358 | 488 | 358 | 488 | ||||||
Europe, Middle East, & Africa | ||||||||||
Segment Information | ||||||||||
Revenue | 21,636 | 25,158 | ||||||||
Income (loss) from operations | 5,830 | 8,997 | ||||||||
Long-lived assets | 131 | 119 | 131 | 119 | ||||||
Asia Pacific | ||||||||||
Segment Information | ||||||||||
Income (loss) from operations | (6,417) | (7,007) | ||||||||
Long-lived assets | $ 144 | $ 224 | $ 144 | $ 224 |
Summary of Business and Sign_11
Summary of Business and Significant Accounting Policies - Revenue Recognition (Details) | 12 Months Ended |
Jun. 30, 2023 item | |
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, 2023 | Jun. 30, 2022 |
Property and Equipment | ||
Property and equipment, gross | $ 5,504 | $ 5,707 |
Accumulated depreciation and amortization | (4,871) | (4,876) |
Property and equipment, net | 633 | 831 |
Computers and Equipment | ||
Property and Equipment | ||
Property and equipment, gross | 3,886 | 4,174 |
Furniture and Fixtures | ||
Property and Equipment | ||
Property and equipment, gross | 963 | 933 |
Leasehold Improvements | ||
Property and Equipment | ||
Property and equipment, gross | $ 655 | $ 600 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Disclosure Balance Sheet Components Narrative | ||
Depreciation and amortization | $ 490 | $ 478 |
Disposals of fixed assets | $ 516 | $ 71 |
Balance Sheet Components - Su_2
Balance Sheet Components - Summary of Accrued Compensation (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Disclosure Balance Sheet Components Summary Of Accrued Compensation | ||
Accrued bonuses | $ 3,068 | $ 3,716 |
Accrued vacation | 2,715 | 2,956 |
Payroll and other employee related costs | 1,688 | 1,477 |
Accrued commissions | 226 | 559 |
Accrued compensation | $ 7,697 | $ 8,708 |
Balance Sheet Components - Su_3
Balance Sheet Components - Summary of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Disclosure Balance Sheet Components Summary Of Accrued Liabilities | ||
Customer advances | $ 109 | $ 329 |
Sales tax payable | 1,017 | 936 |
VAT liability | 927 | 1,191 |
Accrued other liabilities | 3,334 | 2,470 |
Accrued liabilities | $ 5,387 | $ 4,926 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of revenue | ||||||||||
Revenue | $ 24,635 | $ 23,013 | $ 25,600 | $ 24,763 | $ 23,503 | $ 23,904 | $ 23,093 | $ 21,451 | $ 98,011 | $ 91,951 |
Over-time | ||||||||||
Disaggregation of revenue | ||||||||||
Revenue | 86,066 | 81,937 | ||||||||
Point-in-time | ||||||||||
Disaggregation of revenue | ||||||||||
Revenue | 11,945 | 10,014 | ||||||||
Subscription | ||||||||||
Disaggregation of revenue | ||||||||||
Revenue | 90,324 | 84,557 | ||||||||
SaaS revenue | ||||||||||
Disaggregation of revenue | ||||||||||
Revenue | 89,619 | 80,904 | ||||||||
Legacy revenue | ||||||||||
Disaggregation of revenue | ||||||||||
Revenue | 705 | 3,653 | ||||||||
Professional services | ||||||||||
Disaggregation of revenue | ||||||||||
Revenue | $ 7,687 | $ 7,394 |
Revenue Recognition - Revenue b
Revenue Recognition - Revenue by Geography (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue by geography | ||||||||||
Revenue | $ 24,635 | $ 23,013 | $ 25,600 | $ 24,763 | $ 23,503 | $ 23,904 | $ 23,093 | $ 21,451 | $ 98,011 | $ 91,951 |
North America | ||||||||||
Revenue by geography | ||||||||||
Revenue | 76,375 | 66,793 | ||||||||
Europe, Middle East, & Africa | ||||||||||
Revenue by geography | ||||||||||
Revenue | $ 21,636 | $ 25,158 |
Revenue Recognition - Changes i
Revenue Recognition - Changes in Contract Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Contract Liabilities | ||
Deferred revenue | $ 47,762 | $ 45,638 |
Deferred revenue, net of current portion | 2,101 | 3,785 |
Deferred revenue recognized | $ 38,200 | $ 41,400 |
Revenue Recognition - Remaining
Revenue Recognition - Remaining Performance Obligations (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Remaining performance obligations | |
Remaining Performance Obligations | $ 97,300 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |
Remaining performance obligations | |
Remaining Performance Obligations | $ 66,700 |
Remaining Performance Obligations, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | |
Remaining performance obligations | |
Remaining Performance Obligations | $ 30,600 |
Remaining Performance Obligations, period |
Income Taxes - Income (Loss) Be
Income Taxes - Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Disclosure Income Taxes Income Loss Before Income Taxes [Abstract] | ||
United States | $ (460) | $ (4,214) |
Foreign | 3,816 | 3,008 |
Income (loss) before income tax provision | $ 3,356 | $ (1,206) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Federal Statutory Tax Rate to Effective Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Reconciliation of statutory federal income tax to effective tax | ||
Federal statutory income tax rate | $ (705) | $ 253 |
Current state taxes, net of federal benefit | 1,152 | 134 |
Foreign rate differential | 559 | 98 |
Research and development credits | 747 | 433 |
Foreign withholding tax | (27) | (63) |
Stock-based compensation | (136) | (102) |
Deferred return to provision | (284) | (213) |
Other items | (118) | (12) |
Net change in valuation allowance | (1,726) | 3,079 |
Foreign income | (709) | |
Expiration of tax attributes | (4,842) | |
Income tax provision | $ (1,247) | $ (1,235) |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Provision (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Current (benefit) provision: | ||
State | $ (576) | $ (350) |
Foreign | (1,221) | (586) |
Total current | (1,797) | (936) |
Deferred: | ||
Foreign | 550 | (299) |
Total deferred | 550 | (299) |
Income tax provision | $ (1,247) | $ (1,235) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Income Taxes | ||
Federal net operating carry forwards | $ 38,900 | |
State net operating carry forwards | 13,000 | |
Increase (decrease) in valuation allowance | 1,700 | $ (3,100) |
Research and development credit carry forwards | 9,404 | 8,321 |
Undistributed earnings of foreign subsidiaries | 24,600 | |
GILTI income | 3,400 | $ 0 |
Federal Research And Development Credits | ||
Income Taxes | ||
Research and development credit carry forwards | 4,300 | |
California Research and Development Credits | ||
Income Taxes | ||
Research and development credit carry forwards | $ 6,400 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 9,115 | $ 14,637 |
Research credits | 9,404 | 8,321 |
Deferred revenue | 898 | 1,036 |
Stock-based compensation | 4,500 | 2,899 |
Accruals and reserves | 1,126 | 6,057 |
Lease liability | 563 | 664 |
Other | 152 | 104 |
Capitalized research and development | 10,088 | |
Gross deferred tax assets | 35,846 | 33,718 |
Less valuation allowance | (34,139) | (32,412) |
Net deferred tax assets | 1,707 | 1,306 |
Deferred tax liabilities: | ||
Right-of-use asset | (601) | (723) |
Fixed assets | (42) | (69) |
Gross deferred tax liabilities | (643) | (792) |
Other Assets | ||
Deferred tax liabilities: | ||
Total deferred tax assets, net | $ 1,064 | $ 514 |
Income Taxes - Uncertain Tax Po
Income Taxes - Uncertain Tax Positions (Detail) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 USD ($) Y | Jun. 30, 2022 USD ($) | |
Disclosure Income Taxes Gross Unrecognized Tax Benefits [Abstract] | ||
Beginning balance | $ 1,556 | $ 1,762 |
Increases in balances related to tax positions taken during current periods | 130 | 89 |
Expired Attributes | (135) | (295) |
Ending balance | 1,551 | $ 1,556 |
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 - Authorize
Stockholders Equity - Authorized Shares (Details) - shares | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 08, 2021 | Dec. 07, 2021 |
Stockholders' equity | ||||
Common stock, shares authorized | 60,000,000 | 60,000,000 | 60,000,000 | 50,000,000 |
Common stock, shares issued | 32,268,000 | 31,930,000 | ||
Common stock, shares outstanding | 31,482,000 | 31,930,000 |
Stockholders' Equity - Reserved
Stockholders' Equity - Reserved Shares of Common Stock for Issuance (Detail) - shares | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Stock-based compensation expense | |||
Stock options outstanding | 4,885,999 | ||
Total reserved shares of common stock for issuance | 6,954,368 | ||
Employee Stock Purchase Plan (ESPP) | |||
Stock-based compensation expense | |||
Stock available for future grants or issuance | 938,403 | ||
2005 Stock Incentive Plan | |||
Stock-based compensation expense | |||
Stock options outstanding | 4,059,282 | 4,617,211 | 1,562,995 |
Stock available for future grants or issuance | 1,057,983 | ||
2005 Management Stock Option Plan | |||
Stock-based compensation expense | |||
Stock options outstanding | 826,717 | 826,717 | 1,172,517 |
Stock available for future grants or issuance | 71,983 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - $ / shares | Jun. 30, 2023 | Jun. 30, 2022 |
Disclosure Of Compensation Related Costs Share Based Payments [Abstract] | ||
Preferred stock, authorized | 5,000,000 | |
Preferred stock par value per share | $ 0.001 | |
Preferred stock, outstanding | 0 | 0 |
Preferred stock, issued | 0 | 0 |
Stockholders' Equity - Activity
Stockholders' Equity - Activity under 2005 Management Stock Option Plan (Detail) - $ / shares | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Options Outstanding | ||
Balance, ending | 4,885,999 | |
Weighted Average Exercise Price | ||
Balance, ending | $ 8.91 | |
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 | 71,983 | 68,649 |
Options Forfeited / Expired | 3,334 | |
Balance, ending | 71,983 | 71,983 |
Options Outstanding | ||
Balance, beginning | 826,717 | 1,172,517 |
Options Exercised | (342,466) | |
Options Forfeited / Expired | (3,334) | |
Balance, ending | 826,717 | 826,717 |
Weighted Average Exercise Price | ||
Balance, beginning | $ 3.29 | $ 3.51 |
Options Exercised | 4.08 | |
Options Forfeited / Expired | 1.75 | |
Balance, ending | $ 3.29 | $ 3.29 |
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% | |
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, 2023 | Jun. 30, 2022 | |
Options Outstanding | ||
Balance, ending | 4,885,999 | |
Weighted Average Exercise Price | ||
Balance, ending | $ 8.91 | |
2005 Stock Incentive Plan | ||
Stock-based compensation expense | ||
Vesting period | 4 years | |
Shares Available for Grant | ||
Balance, beginning | 679,790 | 944,527 |
Shares Added | 3,000,000 | |
Options Granted | (228,817) | (3,607,661) |
Options Forfeited / Expired | 607,010 | 342,924 |
Balance, ending | 1,057,983 | 679,790 |
Options Outstanding | ||
Balance, beginning | 4,617,211 | 1,562,995 |
Options Granted | 228,817 | 3,607,661 |
Options Exercised | (179,736) | (210,521) |
Options Forfeited / Expired | (607,010) | (342,924) |
Balance, ending | 4,059,282 | 4,617,211 |
Weighted Average Exercise Price | ||
Balance, beginning | $ 6.44 | |
Options Granted | $ 8.35 | 11.18 |
Options Exercised | 3.40 | 3.52 |
Options Forfeited / Expired | 10.62 | 10.75 |
Balance, ending | 10.06 | |
Weighted average grant date fair value | $ 4.56 | $ 5.83 |
2005 Stock Incentive Plan | Maximum | ||
Stock-based compensation expense | ||
Option term | 10 years | |
2005 Stock Incentive Plan | Consultants | ||
Options Outstanding | ||
Options Granted | 8,800 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Options Outstanding and Exercisable under All Stock Option Plans (Detail) | 12 Months Ended |
Jun. 30, 2023 $ / shares shares | |
$1.8-$2.13 | |
Stock options outstanding and exercisable under all stock option plans | |
Range of Exercise Prices, minimum | $ 1.8 |
Range of Exercise Prices, maximum | $ 2.13 |
Options Outstanding, Number | shares | 13,005 |
Options Outstanding, Weighted Average Remaining Contractual Life | 3 years 7 months 24 days |
Options Outstanding, Weighted Average Exercise Price | $ 1.81 |
Options Exercisable, Number | shares | 13,005 |
Options Exercisable, Weighted Average Exercise Price | $ 1.81 |
$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 | 902,375 |
Options Outstanding, Weighted Average Remaining Contractual Life | 3 years 4 months 13 days |
Options Outstanding, Weighted Average Exercise Price | $ 2.50 |
Options Exercisable, Number | shares | 902,375 |
Options Exercisable, Weighted Average Exercise Price | $ 2.50 |
$3.4-$7.77 | |
Stock options outstanding and exercisable under all stock option plans | |
Range of Exercise Prices, minimum | 3.4 |
Range of Exercise Prices, maximum | $ 7.77 |
Options Outstanding, Number | shares | 496,803 |
Options Outstanding, Weighted Average Remaining Contractual Life | 3 years 10 months 28 days |
Options Outstanding, Weighted Average Exercise Price | $ 5.76 |
Options Exercisable, Number | shares | 421,833 |
Options Exercisable, Weighted Average Exercise Price | $ 5.50 |
$7.8-$9.86 | |
Stock options outstanding and exercisable under all stock option plans | |
Range of Exercise Prices, minimum | 7.8 |
Range of Exercise Prices, maximum | $ 9.86 |
Options Outstanding, Number | shares | 492,483 |
Options Outstanding, Weighted Average Remaining Contractual Life | 7 years 1 month 6 days |
Options Outstanding, Weighted Average Exercise Price | $ 8.82 |
Options Exercisable, Number | shares | 315,140 |
Options Exercisable, Weighted Average Exercise Price | $ 8.65 |
$9.87-$11.26 | |
Stock options outstanding and exercisable under all stock option plans | |
Range of Exercise Prices, minimum | 9.87 |
Range of Exercise Prices, maximum | $ 11.26 |
Options Outstanding, Number | shares | 238,843 |
Options Outstanding, Weighted Average Remaining Contractual Life | 7 years 3 months 14 days |
Options Outstanding, Weighted Average Exercise Price | $ 10.59 |
Options Exercisable, Number | shares | 108,497 |
Options Exercisable, Weighted Average Exercise Price | $ 10.62 |
$11.36 | |
Stock options outstanding and exercisable under all stock option plans | |
Range of Exercise Prices, minimum | 11.36 |
Range of Exercise Prices, maximum | $ 11.36 |
Options Outstanding, Number | shares | 2,476,541 |
Options Outstanding, Weighted Average Remaining Contractual Life | 8 years 7 days |
Options Outstanding, Weighted Average Exercise Price | $ 11.36 |
Options Exercisable, Number | shares | 1,104,884 |
Options Exercisable, Weighted Average Exercise Price | $ 11.36 |
$11.47-$13.75 | |
Stock options outstanding and exercisable under all stock option plans | |
Range of Exercise Prices, minimum | 11.47 |
Range of Exercise Prices, maximum | $ 13.75 |
Options Outstanding, Number | shares | 247,399 |
Options Outstanding, Weighted Average Remaining Contractual Life | 6 years 2 months 4 days |
Options Outstanding, Weighted Average Exercise Price | $ 12.47 |
Options Exercisable, Number | shares | 172,587 |
Options Exercisable, Weighted Average Exercise Price | $ 12.70 |
$14.28 | |
Stock options outstanding and exercisable under all stock option plans | |
Range of Exercise Prices, minimum | 14.28 |
Range of Exercise Prices, maximum | $ 14.28 |
Options Outstanding, Number | shares | 5,000 |
Options Outstanding, Weighted Average Remaining Contractual Life | 7 years 2 months 15 days |
Options Outstanding, Weighted Average Exercise Price | $ 14.28 |
Options Exercisable, Number | shares | 3,437 |
Options Exercisable, Weighted Average Exercise Price | $ 14.28 |
$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 | 5 years 1 month 13 days |
Options Outstanding, Weighted Average Exercise Price | $ 14.40 |
Options Exercisable, Number | shares | 3,550 |
Options Exercisable, Weighted Average Exercise Price | $ 14.40 |
$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 | 10,000 |
Options Outstanding, Weighted Average Remaining Contractual Life | 7 years 3 months 14 days |
Options Outstanding, Weighted Average Exercise Price | $ 19.11 |
Options Exercisable, Number | shares | 6,666 |
Options Exercisable, Weighted Average Exercise Price | $ 19.11 |
$1.8-$19.11 | |
Stock options outstanding and exercisable under all stock option plans | |
Range of Exercise Prices, minimum | 1.8 |
Range of Exercise Prices, maximum | $ 19.11 |
Options Outstanding, Number | shares | 4,885,999 |
Options Outstanding, Weighted Average Remaining Contractual Life | 6 years 6 months 3 days |
Options Outstanding, Weighted Average Exercise Price | $ 8.91 |
Options Exercisable, Number | shares | 3,051,974 |
Options Exercisable, Weighted Average Exercise Price | $ 7.68 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Option Vested and Exercisable (Detail) - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | |
Number of Shares | |||
Options outstanding | 4,885,999 | 4,885,999 | |
Options fully vested and expected to vest | 4,699,430 | 4,699,430 | |
Options exercisable | 3,051,974 | 3,051,974 | |
Weighted Average Exercise Price | |||
Options outstanding | $ 8.91 | $ 8.91 | |
Options fully vested and expected to vest | 8.84 | 8.84 | |
Options exercisable | $ 7.68 | $ 7.68 | |
Aggregate Intrinsic Value | |||
Options outstanding | $ 5,446,956 | $ 5,446,956 | |
Options fully vested and expected to vest | 5,443,504 | 5,443,504 | |
Options exercisable | $ 5,425,564 | 5,425,564 | |
Closing stock price | $ 7.49 | ||
Total intrinsic value of the options exercised during the period | $ 866,000 | $ 4,300,000 | |
Weighted Average Remaining Contractual Term | |||
Options outstanding | 6 years 6 months 3 days | ||
Options fully vested and expected to vest | 6 years 5 months 8 days | ||
Options exercisable | 5 years 5 months 23 days |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Effect of Stock Based Compensation (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Non-cash stock-based compensation expense | $ (6,246) | $ (11,380) |
Income tax expense | (117) | (217) |
Net income effect | (6,363) | (11,597) |
eGain UK and Exony | ||
Income tax expense | 117 | 217 |
eGain and Other US subsidiaries | ||
Income tax expense | 0 | 0 |
Non-employee awards | ||
Non-cash stock-based compensation expense | $ 140 | $ 232 |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Option Valuation Assumptions (Detail) | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Disclosure Stockholders Equity Valuation Assumptions | ||
Dividend yield | 0% | 0% |
Expected volatility | 64% | 70% |
Average risk-free interest rate | 3.57% | 1.01% |
Expected life (in years) | 4 years 8 months 15 days | 4 years 8 months 4 days |
Stockholders' Equity - 2017 Emp
Stockholders' Equity - 2017 Employee Stock Purchase Plan (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 17, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | |
ESPP | |||
Stock-based compensation | $ 6,246 | $ 11,380 | |
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 8 months 15 days | 4 years 8 months 4 days | |
Expected volatility | 64% | 70% | |
Expected dividend | 0% | 0% | |
Risk free interest rate | 3.57% | 1.01% | |
Employee Stock Purchase Plan (ESPP) | |||
ESPP | |||
Percentage of stock price at which stock can be purchased | 85% | ||
Purchase period | 6 months | ||
Stock-based compensation | $ 399 | $ 457 | |
Weighted average period over which unrecognized compensation is expected to be recognized | 5 months 1 day | ||
Unrecognized compensation expense | $ 143 | ||
Assumptions | |||
Expected life (in years) | 6 months | 6 months | |
Expected volatility | 60% | 57% | |
Risk free interest rate | 1.68% | 1.22% | |
Employee Stock Purchase Plan (ESPP) | Minimum | |||
ESPP | |||
Percentage of base earnings that can be withheld | 1% | ||
Employee Stock Purchase Plan (ESPP) | Maximum | |||
ESPP | |||
Offering period | 27 months | ||
Percentage of base earnings that can be withheld | 15% | ||
Employee Stock Purchase Plan (ESPP) | |||
ESPP | |||
Number of additional shares authorized to be available for issuance | 600,000 | ||
ESPP shares issued | 158,957 | 145,715 | |
ESPP shares issued weighted average grant date fair value | $ 2.54 | $ 2.96 |
Stockholders' Equity - Stock-ba
Stockholders' Equity - Stock-based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Stock-based compensation expense | ||
Stock-based compensation | $ 6,246 | $ 11,380 |
Total unrecognized compensation cost, net of forfeitures, of all options granted but not yet vested | $ 4,400 | |
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 | $ 1,469 | 3,056 |
Research and Development | ||
Stock-based compensation expense | ||
Stock-based compensation | 1,970 | 2,935 |
Sales and marketing expense | ||
Stock-based compensation expense | ||
Stock-based compensation | 997 | 2,367 |
General and administrative expense | ||
Stock-based compensation expense | ||
Stock-based compensation | 1,810 | 3,022 |
Stock Options | ||
Stock-based compensation expense | ||
Stock-based compensation | 5,847 | 10,923 |
Stock Options | Cost of revenue | ||
Stock-based compensation expense | ||
Stock-based compensation | 1,350 | 2,916 |
Stock Options | Research and Development | ||
Stock-based compensation expense | ||
Stock-based compensation | 1,833 | 2,797 |
Stock Options | Sales and marketing expense | ||
Stock-based compensation expense | ||
Stock-based compensation | 901 | 2,248 |
Stock Options | General and administrative expense | ||
Stock-based compensation expense | ||
Stock-based compensation | $ 1,763 | $ 2,962 |
Leases - Weighted Average Lease
Leases - Weighted Average Lease Term and Discount (Details) | Jun. 30, 2023 | Jun. 30, 2022 |
Leases | ||
Weighted average remaining lease term (in years) | 3 years 4 months 24 days | 4 years 18 days |
Weighted average discount rate | 4.97% | 4.92% |
Leases - Lease Information (Det
Leases - Lease Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Leases And Other Commitments | ||
Operating lease expense | $ 1,284 | $ 1,346 |
Operating cash outflows from operating leases | $ 1,215 | $ 1,691 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Fiscal Period: | ||
Fiscal 2024 | $ 935 | |
Fiscal 2025 | 668 | |
Fiscal 2026 | 688 | |
Fiscal 2027 | 528 | |
Total minimum lease payments | 2,819 | |
Less: Imputed interest | (225) | |
Total operating lease liabilities | 2,594 | |
Less: Current operating lease liabilities | (832) | $ (1,044) |
Total operating lease liabilities, net of current portion | $ 1,762 | $ 2,537 |
Commitments and Contingencies -
Commitments and Contingencies - Other Commitments (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Warranty | ||
Warranty period, maximum | 1 year | |
UNITED STATES | ||
Employee benefit plans | ||
Employee contribution from salary | 60% | |
Employer contributions to 401(k) plan | $ 841 | $ 704 |
Foreign Plans | ||
Employee benefit plans | ||
Defined contribution plans' expenses | 748 | 787 |
INDIA | ||
Gratuity Plan | ||
Defined benefit plan costs | $ 144 | $ 120 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Money Market Funds | Level 1 | ||
Fair value measurement of assets and liabilities | ||
Cash equivalents | $ 67.3 | $ 57.9 |
Share Repurchase Program (Detai
Share Repurchase Program (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Nov. 14, 2022 | Jun. 30, 2023 | |
Share repurchase program | ||
Remaining amount available for share repurchase | $ 14,200 | |
Share repurchase program term | 1 year | |
Number of shares repurchased | 785,913 | |
Average acquisition cost per share | $ 7.33 | |
Repurchase of common stock | $ 5,763 | |
Maximum | ||
Share repurchase program | ||
Stock repurchase program - authorized shares | $ 20,000 |
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, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Revenue | $ 24,635 | $ 23,013 | $ 25,600 | $ 24,763 | $ 23,503 | $ 23,904 | $ 23,093 | $ 21,451 | $ 98,011 | $ 91,951 |
Gross profit | 17,949 | 15,418 | 18,848 | 18,481 | 16,902 | 17,367 | 16,992 | 16,153 | 70,696 | 67,414 |
Income (loss) from operations | 2,358 | (512) | 213 | (670) | (1,723) | (476) | (630) | 691 | 1,389 | (2,138) |
Net income (loss) | $ 2,601 | $ (372) | $ (104) | $ (16) | $ (1,551) | $ (615) | $ (826) | $ 551 | $ 2,109 | $ (2,441) |
Earnings (loss) per share: Basic | $ 0.08 | $ (0.01) | $ 0 | $ 0 | $ (0.05) | $ (0.02) | $ (0.03) | $ 0.02 | $ 0.07 | $ (0.08) |
Earnings (loss) per share: Diluted | $ 0.08 | $ (0.01) | $ 0 | $ 0 | $ (0.05) | $ (0.02) | $ (0.03) | $ 0.02 | $ 0.06 | $ (0.08) |
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, 2023 | Jun. 30, 2022 | |
Valuation And Qualifying Accounts | ||
Balance at Beginning of Period | $ 123 | $ 434 |
Additions Charged to Expense | 260 | 68 |
Amounts Written Off, Net of Recoveries | (146) | (379) |
Balance at End of Period | $ 237 | $ 123 |