Collectors Universe (CLCT) 10-Q 2 Nov 20 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2020	Oct. 23, 2020
Cover [Abstract]
Entity Registrant Name	COLLECTORS UNIVERSE INC
Entity Central Index Key	0001089143
Document Type	10-Q
Document Period End Date	Sep. 30, 2020
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		9,298,980
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2021

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020
Current assets:
Cash and cash equivalents	$ 36,731	$ 28,640
Accounts receivable, net of allowance of $121 and $98 at September 30, and June 30, 2020, respectively	2,770	2,324
Inventories, net	2,468	2,512
Prepaid expenses and other current assets	1,817	1,872
Total current assets	43,786	35,348
Property and equipment, net	7,472	6,762
Operating lease right-of-use assets	7,915	8,214
Goodwill	1,625	1,625
Intangible assets, net	2,519	2,446
Deferred income tax assets	623	623
Other assets	468	464
Total assets	64,408	55,482
Current liabilities:
Accounts payable	3,748	3,381
Accrued liabilities	4,308	2,713
Accrued compensation and benefits	4,783	4,854
Current portion of long-term debt	750	750
Operating lease liabilities, current	2,270	2,274
Income taxes payable	1,986	1,142
Deferred revenue	6,376	4,968
Total current liabilities	24,221	20,082
Long Term Debt	750	938
Operating lease liabilities, non-current	9,141	9,450
Commitments and contingencies (Note 8)
Stockholders' equity:
Preferred stock, $.001 par value; 3,000 shares authorized; no shares issued or outstanding
Common stock, $.001 par value; 20,000 shares authorized; 9,299 and 9,240 issued and outstanding at September 30, and June 30, 2020, respectively.	9	9
Additional paid-in capital	89,820	88,918
Accumulated deficit	(59,533)	(63,915)
Total stockholders' equity	30,296	25,012
Total liabilities and stockholders' equity	$ 64,408	$ 55,482

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020
Statement of Financial Position [Abstract]
Net of allowance in accounts receivable	$ 121	$ 98
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	3,000,000	3,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	9,299,000	9,240,000
Common stock, shares outstanding	9,299,000	9,240,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
Net revenues	$ 30,785	$ 20,210
Cost of revenues	11,474	8,101
Gross profit	19,311	12,109
Operating expenses:
Selling and marketing expenses	2,269	2,633
General and administrative expenses	9,233	4,839
Total operating expenses	11,502	7,472
Operating income	7,809	4,637
Interest income and other expense, net	18	71
Income before provision for income taxes	7,827	4,708
Provision for income taxes	1,865	1,095
Net Income	$ 5,962	$ 3,613
Net income per share:
Basic	$ 0.66	$ 0.40
Diluted	$ 0.65	$ 0.40
Weighted average shares outstanding:
Basic	9,027,000	8,973,000
Diluted	9,120,000	9,060,000
Dividends declared per common share	$ 0.175	$ 0.175

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Total
Beginning balance at Jun. 30, 2019	$ 9	$ 87,343	$ (68,405)	$ 18,947
Beginning balance, shares at Jun. 30, 2019	9,153,000
Stock-based compensation - restricted stock		264		264
Stock-based compensation - restricted stock, shares	78,000
Net income			3,613	3,613
Dividends paid			(1,570)	(1,570)
Ending balance at Sep. 30, 2019	$ 9	87,607	(66,362)	21,254
Ending balance, shares at Sep. 30, 2019	9,231,000
Stock-based compensation - restricted stock		341		341
Stock-based compensation - restricted stock, shares	7,000
Net income			2,614	2,614
Dividends paid			(1,571)	(1,571)
Ending balance at Dec. 31, 2019	$ 9	87,948	(65,319)	22,638
Ending balance, shares at Dec. 31, 2019	9,238,000
Stock-based compensation - restricted stock		344		344
Stock-based compensation - restricted stock, shares	32,000
Net income			1,927	1,927
Dividends paid			(1,573)	(1,573)
Ending balance at Mar. 31, 2020	$ 9	88,292	(64,965)	23,336
Ending balance, shares at Mar. 31, 2020	9,270,000
Stock-based compensation - restricted stock		626		626
Stock-based compensation - restricted stock, shares	(30,000)
Net income			2,632	2,632
Dividends paid			(1,582)	(1,582)
Ending balance at Jun. 30, 2020	$ 9	88,918	(63,915)	25,012
Ending balance, shares at Jun. 30, 2020	9,240,000
Stock-based compensation - restricted stock		1,140		1,140
Stock-based compensation - restricted stock, shares	64,000
Payments for retirement of common stock		(238)		(238)
Payments for retirement of common stock, shares	(5,000)
Net income			5,962	5,962
Dividends paid			(1,580)	(1,580)
Ending balance at Sep. 30, 2020	$ 9	$ 89,820	$ (59,533)	$ 30,296
Ending balance, shares at Sep. 30, 2020	9,299,000

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019	Sep. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 5,962	$ 2,632	$ 2,614	$ 3,613
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Depreciation and amortization expense	806			710
Stock-based compensation expense	1,140			264
Non-cash lease expense	(14)			(141)
Provision for bad debts	23			8
Provision for inventory write-down	15			2
Provision for warranty	238			41
Change in operating assets and liabilities:
Accounts receivable	(469)			(294)
Inventories	30			(156)
Prepaid expenses and other	52			(13)
Other assets	(3)			6
Accounts payable and accrued liabilities	1,734			713
Accrued compensation and benefits	(72)			(1,081)
Income taxes payable	843			680
Deferred revenue	1,408			(16)
Net cash provided by operating activities	11,693			4,336
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(1,207)			(211)
Capitalized software	(381)			(279)
Net cash used in investing activities	(1,588)			(490)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments under Term Loan	(188)			(188)
Dividends paid to common stockholders	(1,588)			(1,583)
Payments for retirement of common stock	(238)
Net cash used in financing activities	(2,014)			(1,771)
Net increase in cash and cash equivalents	8,091			2,075
Cash and cash equivalents at beginning of period	28,640		$ 21,300	19,225
Cash and cash equivalents at end of period	36,731	$ 28,640		21,300
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Interest paid during the period	26			35
Income taxes paid during the period	$ 1,022			$ 376

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	1. SUMMARY OF Significant Accounting Policies Principles of Consolidation The accompanying unaudited interim condensed consolidated financial statements include the accounts of Collectors Universe, Inc. and its operating subsidiaries (the “Company”, “we”, “us”, or “our”). At September 30, 2020, our operating subsidiaries were Certified Asset Exchange, Inc. (“CAE”), Collectors Universe (Hong Kong) Limited, Collectors Universe (Shanghai) Limited, Collectors Universe (Japan) Limited, and Expos, LLC. (“Expos”), all of which are ultimately 100% owned by Collectors Universe, Inc. All significant intercompany transactions and accounts have been eliminated in consolidation. Unaudited Interim Financial Information The accompanying interim condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. These interim condensed consolidated financial statements are unaudited and, in the opinion of management, include all adjustments (consisting of normal recurring adjustments and accruals) necessary to present fairly the Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Operations, Condensed Consolidated Statements of Stockholders’ Equity and Condensed Consolidated Statements of Cash Flows for the periods presented in accordance with generally accepted accounting principles as in effect in the United States of America (“GAAP”). Operating results for the three months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending June 30, 2021 or for any other interim period during such year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted in accordance with the rules and regulations of the SEC. These interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2020, as filed with the SEC (our “Fiscal 2020 10-K”). Amounts related to disclosure of June 30, 2020 balances within these interim condensed consolidated financial statements were derived from the aforementioned audited consolidated financial statements and the notes thereto. Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. Leases The Company accounts for leases, which consist primarily of office and operations facilities, in accordance with Accounting Standards Codification (“ASC”) 842 Accounting for Leases Note 9- Leases Revenue Recognition The core principle of ASC 606, Revenue from Contracts with Customers Our primary source of revenue is the authentication and grading of collectibles, which represented about 90% of our consolidated revenues in the fiscal year ended June 30, 2020. Our other sources of revenues represent the balance of our revenues which are small and individually account for less than 5% of total revenues. In accordance with ASC 606 we recognize revenue for our main revenue streams as follows: Authentication and Grading Revenues: Warranty Costs Collectors Club Revenues: Certified Coin Exchange Subscription Revenues: Expos Trade Show Revenue: Advertising and Commission Revenues: Product Sales: Contract Balances. Shipping and Handling Costs Shipping and handling costs incurred to process and return customer collectibles submitted to us for grading or authentication are recorded as costs of revenues, net of amounts received from customers, in accordance with the guidance for Principals versus Agents as set out in ASC 606. Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from results expected on the basis of those estimates, and such differences could be material to our future results of operations and financial condition. Examples of such estimates that could be material include determinations made with respect to the capitalization and recovery of software development costs, the valuation of stock-based compensation awards and the timing of the recognition of related stock-based compensation expense, the valuation of coin inventory, the amount and assessment of goodwill for impairment, the sufficiency of warranty reserves and the provision or benefit for income taxes and related valuation allowances. Goodwill and Other Long-Lived Assets We evaluate the carrying value of goodwill and indefinite-lived intangible assets at least annually, or more frequently if facts and circumstances indicate that impairment may have occurred. Qualitative factors are considered in performing our goodwill impairment assessment, including the significant excess of fair value over carrying value in prior years, and any material changes in the estimated cash flows of the reporting unit. We also evaluate the carrying values of all other tangible and intangible assets for impairment if circumstances arise in which the carrying values of these assets may not be recoverable on the basis of future undiscounted cash flows. We determined that no impairment of goodwill or other long-lived assets existed as of September 30, 2020. During the first quarter ended September 30, 2020, we completed the annual goodwill impairment assessment with respect to the goodwill acquired in our fiscal year 2006 purchases of CCE and CoinFacts. We assessed qualitative factors, including the significant excess of their fair values over carrying value in prior years, and any material changes in the estimated cash flows of the reporting units, and determined that it was more likely than not that the fair values of CCE and CoinFacts were greater than their respective carrying values, including goodwill. Foreign Currency The Company has determined that the U.S. Dollar is the functional currency for its French branch office and its Hong Kong, Japan and China subsidiaries. Based on this determination, the Company’s foreign operations are re-measured by reflecting the financial results of such operations as if they had taken place within a U.S. dollar-based economic environment. Fixed assets and other non-monetary assets and liabilities are re-measured from foreign currencies to U.S. dollars at historical exchange rates; whereas cash, accounts receivable and other monetary assets and liabilities are re-measured at current exchange rates. Gains and losses resulting from those re-measurements, were not material. Stock-Based Compensation We recognize stock-based compensation attributable to service-based equity grants over the service period based on the grant date fair values of the awards. For performance-based equity grants with financial performance goals, we begin recognizing compensation expense based on their respective grant date fair values when it becomes probable that we will achieve the financial performance goals. Restricted Stock Awards: 2021, 2020 and 2019 Long Term Incentive Plans (“LTIPs”) Retention Restricted Service Shares To create incentives for the officers and other key employees (“LTIP Participants”) to remain in the Company’s service, RSUs were granted to them as follows: Annual Grants If a Participant’s continuous service with the Company ceases, for any reason whatsoever, including a termination of the Participant’s employment with or without cause, prior to any vesting date or dates, the then unvested RSUs will be forfeited. Fiscal 2021, 2020 and 2019 Performance Restricted Shares (“PSUs”) To create incentives for the LTIP Participants to focus their efforts on the achievement of increases in net cash flows (defined as net cash generated by the Company’s operating activities, minus capital expenditures and capitalized software costs), during the three years ending June 30, 2021, 2022 and 2023, (the “Performance Periods”), in fiscal 2021, 2020 and 2019, the Compensation Committee granted 33,728, 51,905 and 89,542 PSUs (at maximum) respectively, to the LTIP Participants. Vesting of the PSUs was made dependent upon the achievement of net cash flow goals on an annual basis during the Performance Period, subject to possible downward or upward adjustment of 20% of the PSUs, based on a comparison of the Company’s annualized total shareholder return (“TSR”) for each Performance Period, to the annualized TSR of the Russell 2000 Index, for the same Performance Period. As the Compensation Committee establishes performance goals on an annual basis, threshold, target and maximum net cash flow goals were established for fiscal years 2021, 2020 and 2019 which give rise to a grant date for expense recognition purposes, assuming it is probable that the goals will be achieved. Grant dates will be established for future year’s PSUs early in those fiscal years which will give rise to grant dates for expense recognition purposes. For any of the PSUs to vest, a Participant must remain in the continuous service of the Company through June 30, 2021 for the fiscal 2019 PSUs, June 30, 2022 for the fiscal 2020 PSUs, and June 30, 2023 for fiscal 2021 PSUs and the threshold net cash flows goal must be achieved in at least one of the years, during the three year Performance Period. LTIP related stock-based compensation expenses of $517,000 and $77,000 were recognized in the three months ended September 30, 2020 and 2019, respectively and comprise expense associated with the FY 2019, FY 2020 and FY 2021 LTIP awards for which expense is recognized over the service period for RSUs and for PSUs as goals are established and it becomes probable that those goals will be achieved. Non LTIP Stock Awards In the three months ended September 30, 2020, 10,812 fully vested shares were granted to management and new outside directors appointed during the first quarter, for an expense of approximately $503,000 for the quarter. Total stock-based compensation expense for all fully vested stock grants and all unvested RSUs and PSUs in the three months ended September 30, 2020 was $1,140,000 as compared to $264,000 in the three months ended September 30, 2019. Concentrations Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. Financial Instruments and Cash Balances. Substantially all of our cash in the United States is deposited at one FDIC insured financial institution. We maintained cash due from banks, inclusive of cash in overseas accounts, in excess of the bank’s FDIC insured deposit limits of approximately $33,580,000 at September 30, 2020. Revolving Credit Line Credit Line borrowings bear interest, at the Company’s option, either at LIBOR plus 2.25% or at 0.25% below the highest prime lending rate published from time to time by the Wall Street Journal. The Company is required to pay a quarterly unused commitment fee of 0.0625% of the amount by which (if any) that the average of the borrowings outstanding under the Credit Line in any calendar quarter is less than $6 million. The Credit Line agreement contains a financial covenant that requires the Company to maintain a funded debt coverage ratio, similar to the debt coverage ratio that is applicable to the term loan (see below) and certain other covenants typical for this type of credit. At September 30, 2020, the Company was in compliance with those covenants. Availability to borrow under the line of credit was $15,000,000 at September 30, 2020 as there were no borrowings outstanding under the line of credit at September 30, 2020. Term Loan . The term loan agreement contains two financial covenants, which require the Company to maintain (a) a funded debt coverage ratio and (b) a debt service coverage ratio, respectively. The loan agreement also contains certain other covenants typical for this type of loan, including a covenant which provides that, without the bank’s consent, the Company may not incur additional indebtedness for borrowed money, except for (i) borrowings under the Company’s revolving credit line, (ii) purchase money indebtedness and (iii) capitalized lease obligations. The Company was in compliance with those loan covenants at September 30, 2020 and June 30, 2020. At September 30, 2020, the Company had $1,500,000 of outstanding borrowings under the term loan of which $750,000 is classified as a current liability and $750,000 is classified as a long-term liability in the consolidated condensed balance sheet at September 30, 2020. Accounts Receivable. Cards / Autograph and Coins Revenues Customers. Inventories Our inventories consist primarily of (i) coins which we have purchased pursuant to our coin authentication and grading warranty program and (ii) consumable supplies and special inserts that we use in our authentication and grading businesses. Coin collectibles inventories are recorded at the lower of cost or net realizable value using the specific identification method. Consumable supplies are recorded at the lower of cost (using the first-in first-out method) or market. Inventories are periodically reviewed to identify slow-moving items, and an allowance for inventory losses is recognized, if considered necessary. It is possible that our estimates of market value of collectible coins in inventory could change, due to changes in market conditions in the various collectibles markets served by the Company, which could require us to increase that allowance for inventory losses. Capitalized Software We capitalize certain costs incurred in the development and upgrading of our software, either from internal or external sources, as part of intangible assets and we amortize those costs on a straight-line basis over the estimated useful life of the software of three years. In the three months ended September 30, 2020 we capitalized approximately $381,000 of software development costs as compared to $279,000 in the three months ended September 30, 2019. In the three months ended September 30, 2020, we recorded approximately $283,000 as amortization expense for capitalized software as compared to $229,000 in the three months ended September 30, 2019. Planning, training, support and maintenance costs incurred either prior to or following the implementation phase of software development projects are recognized as expense in the period in which they are incurred. We evaluate the carrying value of capitalized software for possible impairment, and, if necessary, an impairment loss is recorded in the period in which any impairment is determined to have occurred. Warranty Costs We provide a limited warranty covering the coins and trading cards that we authenticate and grade. Under the warranty, if any collectible coin or trading card that was previously authenticated and graded by us is later submitted to us for re-grading and either (i) receives a lower grade upon that re-submittal or (ii) is determined not to have been authentic, we will offer to purchase the collectible or, in the alternative, at the customer’s option, pay the difference in value of the item at its original grade, as compared to its value at its lower grade. However, this warranty is voided if the collectible, upon re-submittal to us, is not in the same tamper-resistant holder in which it was placed at the time we last graded it. We accrue for estimated warranty costs based on historical trends and related experience. We monitor the adequacy of our warranty reserves on an ongoing basis for significant claims resulting from resubmissions receiving lower grades or deemed not to be authentic. Warranty expense recognized in the three months ended September 30, 2020 was $238,000 as compared to $41,000 in the three months ended September 30, 2019. Dividends In accordance with the Company’s current dividend policy, we paid quarterly cash dividends of $0.175 per share of common stock in the first quarter of fiscal 2021 and 2020. The declaration of cash dividends in the future is subject to final determination each quarter by the Board of Directors based on a number of factors, including the Company’s financial performance and its available cash resources, its cash requirements and alternative uses of cash that the Board may conclude would represent an opportunity to generate a greater return on investment for the Company. Recent Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instrument.

Inventories

Inventories	3 Months Ended
	Sep. 30, 2020
Inventory Disclosure [Abstract]
Inventories	2. INVENTORIES Inventories consist of the following (in thousands): September 30, June 30, 2020 2020 Coins $ 197 $ 195 Grading raw materials consumable inventory 3,358 3,389 3,555 3,584 Less inventory reserve (1,087 ) (1,072 ) Inventories, net $ 2,468 $ 2,512 The inventory reserve represents a valuation allowance on certain items of our coins inventory based on the current market value of those coins and for our consumables inventories, based upon our review of the expected future usage of that inventory. Estimated market value of coins can be subjective and can vary depending on market conditions for precious metals, the number of qualified buyers for a particular coin and the uniqueness and special features of a particular coin.

Property and Equipment

Property and Equipment	3 Months Ended
	Sep. 30, 2020
Property, Plant and Equipment [Abstract]
Property and Equipment	3. PROPERTY AND EQUIPMENT Property and equipment consist of the following (in thousands): September 30, June 30, 2020 2020 Coins grading reference sets $ 68 $ 68 Computer hardware and equipment 3,149 2,844 Computer software 1,752 1,752 Equipment 6,204 5,566 Furniture and office equipment 1,354 1,113 Leasehold improvements 4,824 4,801 Trading card reference library 52 52 17,403 16,196 Less accumulated depreciation and amortization (9,931 ) (9,434 ) Property and equipment, net $ 7,472 $ 6,762

Accrued Liabilities

Accrued Liabilities	3 Months Ended
	Sep. 30, 2020
Payables and Accruals [Abstract]
Accrued Liabilities	4. ACCRUED LIABILITIES Accrued liabilities consist of the following (in thousands): September 30, June 30, 2020 2020 Warranty reserves $ 867 $ 698 Professional fees 1,990 975 Other 1,451 1,040 $ 4,308 $ 2,713 The following table presents the changes in the Company’s warranty reserve during the three months ended September 30, 2020 and 2019 (in thousands): Three Months Ended September 30, 2020 2019 Warranty reserve beginning of period $ 698 $ 852 Provision charged to cost of revenues 238 41 Payments (69 ) (129 ) Warranty reserve, end of period $ 867 $ 764

Income Taxes

Income Taxes	3 Months Ended
	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	5. INCOME TAXES The income tax provisions in the three months ended September 30, 2020 and 2019, were determined based on estimated annual effective tax rates of approximately 24% and 23%, respectively. Both three month periods were adjusted for excess tax benefits or deficiencies.

Net Income Per Share

Net Income Per Share	3 Months Ended
	Sep. 30, 2020
Net income per share:
Net Income Per Share	6. NET INCOME PER SHARE The following table presents the changes in the Company’s weighted average shares outstanding for the three months ended September 30, 2020 and 2019 (in thousands): Three Months Ended September 30, 2020 2019 Weighted average shares outstanding: Basic 9,027 8,973 Dilutive effect of restricted shares 93 87 Weighted average shares outstanding: Diluted 9,120 9,060 A total of 5,000 anti-dilutive unvested restricted shares of common stock were excluded from the computation of diluted income per share in the three months ended September 30, 2019. There were no anti-dilutive unvested restricted shares of common stock at September 30, 2020. In addition, in the three months ended September 30, 2020, 71,000 of unvested performance based shares were excluded from the computation of diluted earnings per share because we had not achieved the related performance goals required for those shares to vest.

Business Segments

Business Segments	3 Months Ended
	Sep. 30, 2020
Segment Reporting [Abstract]
Business Segments	7. BUSINESS SEGMENTS Operating segments are defined as the components or “segments” of an enterprise for which separate financial information is available that is evaluated regularly by the Company’s chief operating decision maker, or decision-making group, in deciding how to allocate resources to and in assessing performance of those components or “segments”. The Company’s chief operating decision-maker is its Chief Executive Officer. The Company’s operating segments are organized based on the respective services that they offer to customers. Similar operating segments have been aggregated to reportable operating segments based on having similar services, types of customers, and other criteria. We operate principally in three reportable service segments: trading cards / autographs, coins, and other (which include our smaller non-authentication and grading businesses). Services provided by the trading cards / autographs, and coins segments include authentication, grading, publications, advertising and commissions earned, membership revenues and product sales. The other segment is comprised of CCE, Coinflation.com, Collectors.com and our collectibles trade show business. We allocate certain operating expenses to each service segment based upon each segment’s estimated expense usage. The following tables set forth on a segment basis, including a reconciliation with the condensed consolidated financial statements, (i) revenues, (ii) depreciation and amortization, (iii) stock-based compensation expense, and (iv) operating income for the three months ended September 30, 2020 and 2019, respectively. Net identifiable assets are provided by business segment as of September 30, 2020 and June 30, 2020, respectively (in thousands): Three Months Ended September 30, 2020 2019 Net revenues: Trading cards / autographs $ 18,612 $ 8,094 Coins (i) 11,450 10,982 Other 723 1,134 Consolidated total revenue $ 30,785 $ 20,210 Depreciation and amortization: Trading cards / autographs $ 216 $ 151 Coins 400 364 Other 66 92 Total 682 607 Unallocated depreciation and amortization 124 103 Consolidated depreciation and amortization $ 806 $ 710 Stock-based compensation: Trading cards / autographs $ 63 $ 17 Coins 113 51 Other 19 8 Total 195 76 Unallocated stock-based compensation 945 188 Consolidated stock-based compensation $ 1,140 $ 264 Operating income: Trading cards / autographs $ 8,604 $ 2,255 Coins 3,632 3,753 Other 336 308 Total 12,572 6,316 Unallocated operating expenses (4,763 ) (1,679 ) Consolidated operating income $ 7,809 $ 4,637 (i) Includes revenues of $2.4 million generated from outside the United States in both the three months ended September 30, 2020 and September 30, 2019, respectively. September 30, June 30, 2020 2020 Identifiable Assets: Trading cards / autographs $ 5,509 $ 4,633 Coins 10,821 10,836 Other 1,754 1,778 Total 18,084 17,247 Unallocated assets 46,324 38,235 Consolidated assets $ 64,408 $ 55,482 Goodwill: Coins $ 515 $ 515 Other 1,110 1,110 Consolidated goodwill $ 1,625 $ 1,625

Contingencies

Contingencies	3 Months Ended
	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Contingencies	8. CONTINGENCIES The Company is named from time to time, as a defendant in lawsuits and disputes that arise in the ordinary course of business. We establish accruals for lawsuits or disputes when it is determined that a loss is both probable and can be reasonably estimated. Accruals can be adjusted from time to time, in light of additional information. We believe that none of the lawsuits or disputes currently pending against the Company is likely to have a material adverse effect on the Company’s financial position or results of operations.

Leases

Leases	3 Months Ended
	Sep. 30, 2020
Leases [Abstract]
Leases	9. LEASES The Company has operating leases for office facilities and certain equipment. Our leases have remaining terms of one year to eight years, some of which included options to extend. We do not include options to extend in our determination of the valuation of our right-of-use (ROU) assets and lease liabilities, as it was not considered probable that we will exercise those options. Lease expense is recognized on a straight-line basis over the lease term. Some of our leases have variable payments of property taxes, insurance and common area maintenance, in addition to base rent. These variable payments are expensed when incurred and are recorded as variable rent expense. See Subsequent Events: Lease Obligation Operating lease right-of-use assets and liabilities are measured using the present value of future minimum lease payments over the lease term. We applied our incremental borrowing rate based on the information available at the adoption date. Information related to the Company’s total lease costs were as follows (in thousands): Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Operating lease cost $ 533 $ 536 Variable lease cost 121 111 Total lease cost $ 654 $ 647 Information related to the Company’s ROU assets and related lease liabilities were as follows (in thousands): Three Months Ended September 30, 2020 Cash paid for operating lease liabilities $ 600 Weighted-average remaining lease term 7.1 years Weighted-average discount rate 4.8 % The table below reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancellable operating leases with terms of more than one year to the total operating lease liabilities recognized on the condensed consolidated balance sheets as of September 30, 2020 (in thousands): Fiscal Year Ending June 30, Amount 2021 (remaining 9 months) $ 1,799 2022 2,058 2023 1,654 2024 1,473 2025 1,469 Thereafter 5,070 Total undiscounted future minimum lease payments 13,523 Less: Imputed interest (2,112 ) Total operating lease liabilities $ 11,411 Current operating lease liabilities $ 2,270 Long-term operating lease liabilities 9,141 Total operating lease liabilities $ 11,411

Subsequent Events

Subsequent Events	3 Months Ended
	Sep. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	10. SUBSEQUENT EVENTS Lease Obligation On October 1, 2020, the Company entered into a lease amendment with its landlord to lease an additional 62,870 square feet of space at its operations and headquarters facility in Santa Ana, California. The lease term for the additional space is through September 30, 2028 which is consistent with the existing lease. Minimum lease obligations under the new space are approximately $6.9 million which when combined with the existing lease is approximately $18.5 million. The combined lease will be accounted for as a lease modification and effective October 1, 2020 a combined right-of-use asset of approximately $13.0 million and a lease liability of approximately $16.4 million will be recognized on the Company’s balance sheet. Dividends On October 26, 2020, the Company announced that, in accordance with its dividend policy the Board of Directors had approved a second quarter cash dividend of $0.175 per share of common stock, which will be paid on November 27, 2020 to stockholders of record on November 13, 2020.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The accompanying unaudited interim condensed consolidated financial statements include the accounts of Collectors Universe, Inc. and its operating subsidiaries (the “Company”, “we”, “us”, or “our”). At September 30, 2020, our operating subsidiaries were Certified Asset Exchange, Inc. (“CAE”), Collectors Universe (Hong Kong) Limited, Collectors Universe (Shanghai) Limited, Collectors Universe (Japan) Limited, and Expos, LLC. (“Expos”), all of which are ultimately 100% owned by Collectors Universe, Inc. All significant intercompany transactions and accounts have been eliminated in consolidation.
Unaudited Interim Financial Information	Unaudited Interim Financial Information The accompanying interim condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting. These interim condensed consolidated financial statements are unaudited and, in the opinion of management, include all adjustments (consisting of normal recurring adjustments and accruals) necessary to present fairly the Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Operations, Condensed Consolidated Statements of Stockholders’ Equity and Condensed Consolidated Statements of Cash Flows for the periods presented in accordance with generally accepted accounting principles as in effect in the United States of America (“GAAP”). Operating results for the three months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending June 30, 2021 or for any other interim period during such year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted in accordance with the rules and regulations of the SEC. These interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2020, as filed with the SEC (our “Fiscal 2020 10-K”). Amounts related to disclosure of June 30, 2020 balances within these interim condensed consolidated financial statements were derived from the aforementioned audited consolidated financial statements and the notes thereto.
Reclassifications	Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation.
Leases	Leases The Company accounts for leases, which consist primarily of office and operations facilities, in accordance with Accounting Standards Codification (“ASC”) 842 Accounting for Leases Note 9- Leases
Revenue Recognition	Revenue Recognition The core principle of ASC 606, Revenue from Contracts with Customers Our primary source of revenue is the authentication and grading of collectibles, which represented about 90% of our consolidated revenues in the fiscal year ended June 30, 2020. Our other sources of revenues represent the balance of our revenues which are small and individually account for less than 5% of total revenues. In accordance with ASC 606 we recognize revenue for our main revenue streams as follows: Authentication and Grading Revenues: Warranty Costs Collectors Club Revenues: Certified Coin Exchange Subscription Revenues: Expos Trade Show Revenue: Advertising and Commission Revenues: Product Sales: Contract Balances.
Shipping and Handling Costs	Shipping and Handling Costs Shipping and handling costs incurred to process and return customer collectibles submitted to us for grading or authentication are recorded as costs of revenues, net of amounts received from customers, in accordance with the guidance for Principals versus Agents as set out in ASC 606.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from results expected on the basis of those estimates, and such differences could be material to our future results of operations and financial condition. Examples of such estimates that could be material include determinations made with respect to the capitalization and recovery of software development costs, the valuation of stock-based compensation awards and the timing of the recognition of related stock-based compensation expense, the valuation of coin inventory, the amount and assessment of goodwill for impairment, the sufficiency of warranty reserves and the provision or benefit for income taxes and related valuation allowances.
Goodwill and Other Long-Lived Assets	Goodwill and Other Long-Lived Assets We evaluate the carrying value of goodwill and indefinite-lived intangible assets at least annually, or more frequently if facts and circumstances indicate that impairment may have occurred. Qualitative factors are considered in performing our goodwill impairment assessment, including the significant excess of fair value over carrying value in prior years, and any material changes in the estimated cash flows of the reporting unit. We also evaluate the carrying values of all other tangible and intangible assets for impairment if circumstances arise in which the carrying values of these assets may not be recoverable on the basis of future undiscounted cash flows. We determined that no impairment of goodwill or other long-lived assets existed as of September 30, 2020. During the first quarter ended September 30, 2020, we completed the annual goodwill impairment assessment with respect to the goodwill acquired in our fiscal year 2006 purchases of CCE and CoinFacts. We assessed qualitative factors, including the significant excess of their fair values over carrying value in prior years, and any material changes in the estimated cash flows of the reporting units, and determined that it was more likely than not that the fair values of CCE and CoinFacts were greater than their respective carrying values, including goodwill.
Foreign Currency	Foreign Currency The Company has determined that the U.S. Dollar is the functional currency for its French branch office and its Hong Kong, Japan and China subsidiaries. Based on this determination, the Company’s foreign operations are re-measured by reflecting the financial results of such operations as if they had taken place within a U.S. dollar-based economic environment. Fixed assets and other non-monetary assets and liabilities are re-measured from foreign currencies to U.S. dollars at historical exchange rates; whereas cash, accounts receivable and other monetary assets and liabilities are re-measured at current exchange rates. Gains and losses resulting from those re-measurements, were not material.
Stock-Based Compensation	Stock-Based Compensation We recognize stock-based compensation attributable to service-based equity grants over the service period based on the grant date fair values of the awards. For performance-based equity grants with financial performance goals, we begin recognizing compensation expense based on their respective grant date fair values when it becomes probable that we will achieve the financial performance goals. Restricted Stock Awards: 2021, 2020 and 2019 Long Term Incentive Plans (“LTIPs”) Retention Restricted Service Shares To create incentives for the officers and other key employees (“LTIP Participants”) to remain in the Company’s service, RSUs were granted to them as follows: Annual Grants If a Participant’s continuous service with the Company ceases, for any reason whatsoever, including a termination of the Participant’s employment with or without cause, prior to any vesting date or dates, the then unvested RSUs will be forfeited. Fiscal 2021, 2020 and 2019 Performance Restricted Shares (“PSUs”) To create incentives for the LTIP Participants to focus their efforts on the achievement of increases in net cash flows (defined as net cash generated by the Company’s operating activities, minus capital expenditures and capitalized software costs), during the three years ending June 30, 2021, 2022 and 2023, (the “Performance Periods”), in fiscal 2021, 2020 and 2019, the Compensation Committee granted 33,728, 51,905 and 89,542 PSUs (at maximum) respectively, to the LTIP Participants. Vesting of the PSUs was made dependent upon the achievement of net cash flow goals on an annual basis during the Performance Period, subject to possible downward or upward adjustment of 20% of the PSUs, based on a comparison of the Company’s annualized total shareholder return (“TSR”) for each Performance Period, to the annualized TSR of the Russell 2000 Index, for the same Performance Period. As the Compensation Committee establishes performance goals on an annual basis, threshold, target and maximum net cash flow goals were established for fiscal years 2021, 2020 and 2019 which give rise to a grant date for expense recognition purposes, assuming it is probable that the goals will be achieved. Grant dates will be established for future year’s PSUs early in those fiscal years which will give rise to grant dates for expense recognition purposes. For any of the PSUs to vest, a Participant must remain in the continuous service of the Company through June 30, 2021 for the fiscal 2019 PSUs, June 30, 2022 for the fiscal 2020 PSUs, and June 30, 2023 for fiscal 2021 PSUs and the threshold net cash flows goal must be achieved in at least one of the years, during the three year Performance Period. LTIP related stock-based compensation expenses of $517,000 and $77,000 were recognized in the three months ended September 30, 2020 and 2019, respectively and comprise expense associated with the FY 2019, FY 2020 and FY 2021 LTIP awards for which expense is recognized over the service period for RSUs and for PSUs as goals are established and it becomes probable that those goals will be achieved. Non LTIP Stock Awards In the three months ended September 30, 2020, 10,812 fully vested shares were granted to management and new outside directors appointed during the first quarter, for an expense of approximately $503,000 for the quarter. Total stock-based compensation expense for all fully vested stock grants and all unvested RSUs and PSUs in the three months ended September 30, 2020 was $1,140,000 as compared to $264,000 in the three months ended September 30, 2019.
Concentrations	Concentrations Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. Financial Instruments and Cash Balances. Substantially all of our cash in the United States is deposited at one FDIC insured financial institution. We maintained cash due from banks, inclusive of cash in overseas accounts, in excess of the bank’s FDIC insured deposit limits of approximately $33,580,000 at September 30, 2020. Revolving Credit Line Credit Line borrowings bear interest, at the Company’s option, either at LIBOR plus 2.25% or at 0.25% below the highest prime lending rate published from time to time by the Wall Street Journal. The Company is required to pay a quarterly unused commitment fee of 0.0625% of the amount by which (if any) that the average of the borrowings outstanding under the Credit Line in any calendar quarter is less than $6 million. The Credit Line agreement contains a financial covenant that requires the Company to maintain a funded debt coverage ratio, similar to the debt coverage ratio that is applicable to the term loan (see below) and certain other covenants typical for this type of credit. At September 30, 2020, the Company was in compliance with those covenants. Availability to borrow under the line of credit was $15,000,000 at September 30, 2020 as there were no borrowings outstanding under the line of credit at September 30, 2020. Term Loan . The term loan agreement contains two financial covenants, which require the Company to maintain (a) a funded debt coverage ratio and (b) a debt service coverage ratio, respectively. The loan agreement also contains certain other covenants typical for this type of loan, including a covenant which provides that, without the bank’s consent, the Company may not incur additional indebtedness for borrowed money, except for (i) borrowings under the Company’s revolving credit line, (ii) purchase money indebtedness and (iii) capitalized lease obligations. The Company was in compliance with those loan covenants at September 30, 2020 and June 30, 2020. At September 30, 2020, the Company had $1,500,000 of outstanding borrowings under the term loan of which $750,000 is classified as a current liability and $750,000 is classified as a long-term liability in the consolidated condensed balance sheet at September 30, 2020. Accounts Receivable. Cards / Autograph and Coins Revenues Customers.
Inventories	Inventories Our inventories consist primarily of (i) coins which we have purchased pursuant to our coin authentication and grading warranty program and (ii) consumable supplies and special inserts that we use in our authentication and grading businesses. Coin collectibles inventories are recorded at the lower of cost or net realizable value using the specific identification method. Consumable supplies are recorded at the lower of cost (using the first-in first-out method) or market. Inventories are periodically reviewed to identify slow-moving items, and an allowance for inventory losses is recognized, if considered necessary. It is possible that our estimates of market value of collectible coins in inventory could change, due to changes in market conditions in the various collectibles markets served by the Company, which could require us to increase that allowance for inventory losses.
Capitalized Software	Capitalized Software We capitalize certain costs incurred in the development and upgrading of our software, either from internal or external sources, as part of intangible assets and we amortize those costs on a straight-line basis over the estimated useful life of the software of three years. In the three months ended September 30, 2020 we capitalized approximately $381,000 of software development costs as compared to $279,000 in the three months ended September 30, 2019. In the three months ended September 30, 2020, we recorded approximately $283,000 as amortization expense for capitalized software as compared to $229,000 in the three months ended September 30, 2019. Planning, training, support and maintenance costs incurred either prior to or following the implementation phase of software development projects are recognized as expense in the period in which they are incurred. We evaluate the carrying value of capitalized software for possible impairment, and, if necessary, an impairment loss is recorded in the period in which any impairment is determined to have occurred.
Warranty Costs	Warranty Costs We provide a limited warranty covering the coins and trading cards that we authenticate and grade. Under the warranty, if any collectible coin or trading card that was previously authenticated and graded by us is later submitted to us for re-grading and either (i) receives a lower grade upon that re-submittal or (ii) is determined not to have been authentic, we will offer to purchase the collectible or, in the alternative, at the customer’s option, pay the difference in value of the item at its original grade, as compared to its value at its lower grade. However, this warranty is voided if the collectible, upon re-submittal to us, is not in the same tamper-resistant holder in which it was placed at the time we last graded it. We accrue for estimated warranty costs based on historical trends and related experience. We monitor the adequacy of our warranty reserves on an ongoing basis for significant claims resulting from resubmissions receiving lower grades or deemed not to be authentic. Warranty expense recognized in the three months ended September 30, 2020 was $238,000 as compared to $41,000 in the three months ended September 30, 2019.
Dividends	Dividends In accordance with the Company’s current dividend policy, we paid quarterly cash dividends of $0.175 per share of common stock in the first quarter of fiscal 2021 and 2020. The declaration of cash dividends in the future is subject to final determination each quarter by the Board of Directors based on a number of factors, including the Company’s financial performance and its available cash resources, its cash requirements and alternative uses of cash that the Board may conclude would represent an opportunity to generate a greater return on investment for the Company.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instrument.

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Sep. 30, 2020
Inventory Disclosure [Abstract]
Schedule of Inventories, Net	Inventories consist of the following (in thousands): September 30, June 30, 2020 2020 Coins $ 197 $ 195 Grading raw materials consumable inventory 3,358 3,389 3,555 3,584 Less inventory reserve (1,087 ) (1,072 ) Inventories, net $ 2,468 $ 2,512

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Sep. 30, 2020
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment	Property and equipment consist of the following (in thousands): September 30, June 30, 2020 2020 Coins grading reference sets $ 68 $ 68 Computer hardware and equipment 3,149 2,844 Computer software 1,752 1,752 Equipment 6,204 5,566 Furniture and office equipment 1,354 1,113 Leasehold improvements 4,824 4,801 Trading card reference library 52 52 17,403 16,196 Less accumulated depreciation and amortization (9,931 ) (9,434 ) Property and equipment, net $ 7,472 $ 6,762

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	3 Months Ended
	Sep. 30, 2020
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued liabilities consist of the following (in thousands): September 30, June 30, 2020 2020 Warranty reserves $ 867 $ 698 Professional fees 1,990 975 Other 1,451 1,040 $ 4,308 $ 2,713
Schedule of Product Warranty	The following table presents the changes in the Company’s warranty reserve during the three months ended September 30, 2020 and 2019 (in thousands): Three Months Ended September 30, 2020 2019 Warranty reserve beginning of period $ 698 $ 852 Provision charged to cost of revenues 238 41 Payments (69 ) (129 ) Warranty reserve, end of period $ 867 $ 764

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
	Sep. 30, 2020
Net income per share:
Schedule of Earnings Per Share, Basic and Diluted	The following table presents the changes in the Company’s weighted average shares outstanding for the three months ended September 30, 2020 and 2019 (in thousands): Three Months Ended September 30, 2020 2019 Weighted average shares outstanding: Basic 9,027 8,973 Dilutive effect of restricted shares 93 87 Weighted average shares outstanding: Diluted 9,120 9,060

Business Segments (Tables)

Business Segments (Tables)	3 Months Ended
	Sep. 30, 2020
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Net identifiable assets are provided by business segment as of September 30, 2020 and June 30, 2020, respectively (in thousands): Three Months Ended September 30, 2020 2019 Net revenues: Trading cards / autographs $ 18,612 $ 8,094 Coins (i) 11,450 10,982 Other 723 1,134 Consolidated total revenue $ 30,785 $ 20,210 Depreciation and amortization: Trading cards / autographs $ 216 $ 151 Coins 400 364 Other 66 92 Total 682 607 Unallocated depreciation and amortization 124 103 Consolidated depreciation and amortization $ 806 $ 710 Stock-based compensation: Trading cards / autographs $ 63 $ 17 Coins 113 51 Other 19 8 Total 195 76 Unallocated stock-based compensation 945 188 Consolidated stock-based compensation $ 1,140 $ 264 Operating income: Trading cards / autographs $ 8,604 $ 2,255 Coins 3,632 3,753 Other 336 308 Total 12,572 6,316 Unallocated operating expenses (4,763 ) (1,679 ) Consolidated operating income $ 7,809 $ 4,637 (i) Includes revenues of $2.4 million generated from outside the United States in both the three months ended September 30, 2020 and September 30, 2019, respectively.
Schedule of Reconciliation of Assets from Segment to Consolidated	September 30, June 30, 2020 2020 Identifiable Assets: Trading cards / autographs $ 5,509 $ 4,633 Coins 10,821 10,836 Other 1,754 1,778 Total 18,084 17,247 Unallocated assets 46,324 38,235 Consolidated assets $ 64,408 $ 55,482 Goodwill: Coins $ 515 $ 515 Other 1,110 1,110 Consolidated goodwill $ 1,625 $ 1,625

Leases (Tables)

Leases (Tables)	3 Months Ended
	Sep. 30, 2020
Leases [Abstract]
Schedule of Lease, Cost	Information related to the Company’s total lease costs were as follows (in thousands): Three Months Ended September 30, 2020 Three Months Ended September 30, 2019 Operating lease cost $ 533 $ 536 Variable lease cost 121 111 Total lease cost $ 654 $ 647
Schedule of ROU Assets and Lease Liabilities	Information related to the Company’s ROU assets and related lease liabilities were as follows (in thousands): Three Months Ended September 30, 2020 Cash paid for operating lease liabilities $ 600 Weighted-average remaining lease term 7.1 years Weighted-average discount rate 4.8 %
Schedule of Future Minimum Lease Payments	The table below reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancellable operating leases with terms of more than one year to the total operating lease liabilities recognized on the condensed consolidated balance sheets as of September 30, 2020 (in thousands): Fiscal Year Ending June 30, Amount 2021 (remaining 9 months) $ 1,799 2022 2,058 2023 1,654 2024 1,473 2025 1,469 Thereafter 5,070 Total undiscounted future minimum lease payments 13,523 Less: Imputed interest (2,112 ) Total operating lease liabilities $ 11,411 Current operating lease liabilities $ 2,270 Long-term operating lease liabilities 9,141 Total operating lease liabilities $ 11,411

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Mar. 10, 2020	Sep. 15, 2017	Oct. 31, 2018	Sep. 30, 2020	Sep. 30, 2019	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
Revenue Recognized				$ 2,306
Deferred revenue				6,376			$ 4,968
Impairment of goodwill
Stock-based compensation expense				1,140	$ 264
Cash and cash equivalents				36,731			28,640
Invested in money market accounts				31,844
Non-interest bearing bank accounts				4,887
FDIC insured deposit				33,580
Revolving credit line amount				6,000
Line of credit facility term	2 years
Line of credit facility term, description	Extended the term for two years through March 2022.
Revolving credit line borrowings	$ 15,000			15,000
Line of credit, description	Each year there must be a period of 30 consecutive days during which no borrowings are outstanding. The Company also may, at any time or from time to time and at its option, repay outstanding borrowings, in whole or in part, and may reborrow amounts so repaid at such times and in such amounts as it deems appropriate. Credit Line borrowings will bear interest, at the Company's option, at LIBOR plus 2.25% or at 0.25% below the highest prime lending rate published from time to time by the Wall Street Journal.
Unused commitment fee percentage	0.0625%
Repayment of loan			$ 3,000
Debt principal payments			$ 750
Debt principal payments, description			In 48 equal monthly principal payments of $62,500, or $750,000 on an annual basis, through September 2022.
Debt outstanding borrowings in term loan				1,500
Current liability				750			750
Long-term liability				750			938
Allowances for doubtful accounts receivable				$ 121			$ 98
Estimated useful life of software				3 years
Capitalized and Software development costs				$ 381	279
Amortization expense on capitalized and Software development costs				283	229
Warranty cost				$ 238	$ 41
Dividends common share				$ 0.175	$ 0.175
LIBOR [Member]
Borrowings bear interest	2.25%
Overseas Bank [Member]
Cash and cash equivalents				$ 1,766
Overseas Bank [Member] | China [Member]
Cash and cash equivalents				$ 1,009
Unsecured Term Loan [Member]
Debt instrument term loan		5 years
Unsecured term loan amount		$ 3,500
Minimum [Member]
Revolving credit line amount	$ 10,000
Maximum [Member]
Revolving credit line amount	$ 15,000
Restricted Stock Units (RSUs) [Member]
Numbers of restricted shares							25,952	44,763
Restricted Stock Units (RSUs) [Member] | Forecast [Member]
Numbers of restricted shares						16,864
Performance Restricted Shares (PSUs) [Member]
Compensation committee granted shares							51,905	89,542
Performance Restricted Shares vested description				Vesting of the PSUs was made dependent upon the achievement of net cash flows on an annual basis for performance periods, subject to possible downward or upward adjustment of 20% of the PSUs, based on a comparison of the Company's annualized total shareholder return ("TSR") for each Performance Period, to the annualized TSR of the Russell 2000 Index, for the same Performance Period.
Stock-based compensation expense				$ 517	$ 77
Performance Restricted Shares (PSUs) [Member] | Forecast [Member]
Compensation committee granted shares						33,728
48 Equal Monthly [Member]
Debt principal payments			$ 62,500
Management & New Outside Directors [Member]
Stock-based compensation expense				$ 503
Fully vested shares				10,812
Revenue [Member]
Concentration Risk, Percentage				90.00%
Revenue percentage description				The balance of our revenues which are small and individually account for less than 5% of total revenues.
Revenue [Member] | Five Customer [Member]
Concentration Risk, Percentage				8.00%	12.00%
Accounts Receivable [Member]
Concentration Risk, Percentage							10.00%
Accounts Receivable [Member] | One Individual Customer [Member]
Concentration Risk, Percentage				10.00%
Coins and Cards / Autographs Revenue [Member]
Concentration Risk, Percentage				98.00%	94.00%
Parent Company [Member]
Ownership interest percentage				100.00%

Inventories - Schedule of Inven

Inventories - Schedule of Inventories, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020
Inventory, gross	$ 3,555	$ 3,584
Less inventory reserve	(1,087)	(1,072)
Inventories, net	2,468	2,512
Coins [Member]
Inventory, gross	197	195
Grading Raw Materials Consumable [Member]
Inventory, gross	$ 3,358	$ 3,389

Property and Equipment - Schedu

Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020
Property and equipment, gross	$ 17,403	$ 16,196
Less accumulated depreciation and amortization	(9,931)	(9,434)
Property and equipment, net	7,472	6,762
Coins Grading Reference Sets [Member]
Property and equipment, gross	68	68
Computer Hardware and Equipment [Member]
Property and equipment, gross	3,149	2,844
Computer Software [Member]
Property and equipment, gross	1,752	1,752
Equipment [Member]
Property and equipment, gross	6,204	5,566
Furniture and Office Equipment [Member]
Property and equipment, gross	1,354	1,113
Leasehold Improvements [Member]
Property and equipment, gross	4,824	4,801
Trading Card Reference Library [Member]
Property and equipment, gross	$ 52	$ 52

Accrued Liabilities - Schedule

Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020
Payables and Accruals [Abstract]
Warranty reserves	$ 867	$ 698
Professional fees	1,990	975
Other	1,451	1,040
Accrued liabilities	$ 4,308	$ 2,713

Accrued Liabilities - Schedul_2

Accrued Liabilities - Schedule of Product Warranty (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Payables and Accruals [Abstract]
Warranty reserve beginning of period	$ 698	$ 852
Provision charged to cost of revenues	238	41
Payments	(69)	(129)
Warranty reserve, end of period	$ 867	$ 764

Income Taxes (Details Narrative

Income Taxes (Details Narrative)	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Effective income tax rate reconciliation, percent, total	24.00%	23.00%

Net Income Per Share (Details N

Net Income Per Share (Details Narrative) - shares	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Restricted Stock Units (RSUs) [Member]
Antidilutive securities from computation of earnings		5,000
Performance Restricted Shares (PSUs) [Member]
Antidilutive securities from computation of earnings	71,000

Net Income Per Share - Schedule

Net Income Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - shares	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Net income per share:
Weighted average shares outstanding: Basic	9,027,000	8,973,000
Dilutive effect of restricted shares	93,000	87,000
Weighted average shares outstanding: Diluted	9,120,000	9,060,000

Business Segments (Details Narr

Business Segments (Details Narrative)	3 Months Ended
	Sep. 30, 2020Segments
Segment Reporting [Abstract]
Number of reportable segments	3

Business Segments - Schedule of

Business Segments - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands		3 Months Ended
		Sep. 30, 2020	Sep. 30, 2019
Net revenues		$ 30,785	$ 20,210
Depreciation and amortization		682	607
Unallocated depreciation and amortization		124	103
Consolidated depreciation and amortization		806	710
Stock-based compensation		195	76
Unallocated stock-based compensation		945	188
Consolidated stock-based compensation		1,140	264
Operating income		12,572	6,316
Unallocated operating expenses		(4,763)	(1,679)
Consolidated operating income		7,809	4,637
Trading Cards and Autographs [Member]
Net revenues		18,612	8,094
Depreciation and amortization		216	151
Stock-based compensation		63	17
Operating income		8,604	2,255
Coins [Member]
Net revenues	[1]	11,450	10,982
Depreciation and amortization		400	364
Stock-based compensation		113	51
Operating income		3,632	3,753
Other [Member]
Net revenues		723	1,134
Depreciation and amortization		66	92
Stock-based compensation		19	8
Operating income		$ 336	$ 308
[1]	Includes revenues of $2.4 million generated from outside the United States in both the three months ended September 30, 2020 and September 30, 2019.

Business Segments - Schedule _2

Business Segments - Schedule of Segment Reporting Information, by Segment (Details) (Parenthetical) - USD ($) $ in Thousands		3 Months Ended
		Sep. 30, 2020	Sep. 30, 2019
Revenues		$ 30,785	$ 20,210
Coins [Member]
Revenues	[1]	11,450	10,982
Coins [Member] | United States [Member]
Revenues		$ 2,400	$ 2,400
[1]	Includes revenues of $2.4 million generated from outside the United States in both the three months ended September 30, 2020 and September 30, 2019.

Business Segments - Schedule _3

Business Segments - Schedule of Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020
Total	$ 18,084	$ 17,247
Unallocated assets	46,324	38,235
Consolidated assets	64,408	55,482
Consolidated goodwill	1,625	1,625
Trading Cards and Autographs [Member]
Total	5,509	4,633
Consolidated goodwill	515	515
Coins [Member]
Total	10,821	10,836
Consolidated goodwill	1,110	1,110
Other [Member]
Total	$ 1,754	$ 1,778

Leases (Details Narrative)

Leases (Details Narrative)	Sep. 30, 2020
Minimum [Member]
Lease remaining lease term	1 year
Maximum [Member]
Lease remaining lease term	8 years

Leases - Schedule of Lease, Cos

Leases - Schedule of Lease, Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Leases [Abstract]
Operating lease cost	$ 533	$ 536
Variable lease cost	121	111
Total lease cost	$ 654	$ 647

Leases - Schedule of ROU Assets

Leases - Schedule of ROU Assets and Lease Liabilities (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2020USD ($)
Leases [Abstract]
Cash paid for operating lease liabilities	$ 600
Weighted-average remaining lease term	7 years 1 month 6 days
Weighted-average discount rate	4.80%

Leases - Schedule of Future Min

Leases - Schedule of Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020
Leases [Abstract]
2021 (remaining 9 months)		$ 1,799
2022		2,058
2023		1,654
2024		1,473
2025		1,469
Thereafter		5,070
Total undiscounted future minimum lease payments		13,523
Less: Imputed interest		(2,112)
Total operating lease liabilities		11,411
Current operating lease liabilities	$ 2,270	2,274
Long-term operating lease liabilities	$ 9,141	$ 9,450

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) $ / shares in Units, $ in Thousands	Oct. 26, 2020$ / shares	Oct. 01, 2020USD ($)ft²	Sep. 30, 2020USD ($)$ / shares	Sep. 30, 2019$ / shares	Jun. 30, 2020USD ($)
Minimum lease obligations					$ 13,523
Operating lease right-of-use assets			$ 7,915		8,214
Operating Lease Liability					$ 11,411
Dividends common share | $ / shares			$ 0.175	$ 0.175
Subsequent Event [Member]
Minimum lease obligations		$ 18,500
Operating lease right-of-use assets		13,000
Operating Lease Liability		$ 16,400
Subsequent Event [Member] | Board of Directors [Member]
Dividends common share | $ / shares	$ 0.175
Subsequent Event [Member] | Lease Amendment [Member]
Area of land | ft²		62,870
Lease term		The lease term for the additional space is through September 30, 2028 which is consistent with the existing lease.
Minimum lease obligations		$ 6,900