Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2020 | May 07, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | LANTRONIX INC | |
Entity Central Index Key | 0001114925 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 27,958,802 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2020 | |
Entity Shell Company | false | |
Entity Small Business | true | |
Entity Emerging Growth | false | |
Entity Interactive Data Current | Yes | |
Entity File Number | 001-16027 | |
Entity Incorporation State Code | DE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 6,977 | $ 18,282 |
Accounts receivable, net | 11,958 | 7,388 |
Inventories, net | 15,246 | 10,509 |
Contract manufacturers' receivable | 434 | 1,324 |
Prepaid expenses and other current assets | 2,043 | 687 |
Total current assets | 36,658 | 38,190 |
Property and equipment, net | 1,594 | 1,199 |
Goodwill | 15,813 | 9,488 |
Purchased intangible assets, net | 13,387 | 0 |
Other assets | 3,225 | 67 |
Total assets | 70,677 | 48,944 |
Current liabilities: | ||
Accounts payable | 6,164 | 4,716 |
Accrued payroll and related expenses | 3,519 | 2,060 |
Warranty reserve | 209 | 116 |
Short-term debt, net | 1,472 | 0 |
Other current liabilities | 6,687 | 4,580 |
Total current liabilities | 18,051 | 11,472 |
Long-term debt, net | 4,050 | 0 |
Other non-current liabilities | 1,631 | 206 |
Total liabilities | 23,732 | 11,678 |
Stockholders' equity: | ||
Common stock | 3 | 2 |
Additional paid-in capital | 244,989 | 226,274 |
Accumulated deficit | (198,418) | (189,381) |
Accumulated other comprehensive income | 371 | 371 |
Total stockholders' equity | 46,945 | 37,266 |
Total liabilities and stockholders' equity | $ 70,677 | $ 48,944 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||||
Net revenue | $ 16,512 | $ 12,344 | $ 42,481 | $ 36,737 |
Cost of revenue | 9,135 | 5,254 | 22,132 | 16,206 |
Gross profit | 7,377 | 7,090 | 20,349 | 20,531 |
Operating expenses: | ||||
Selling, general and administrative | 5,558 | 3,867 | 14,902 | 12,297 |
Research and development | 2,724 | 2,385 | 7,681 | 6,879 |
Restructuring, severance and related charges | 2,263 | 0 | 3,366 | 323 |
Acquisition-related costs | 1,250 | 0 | 2,246 | 0 |
Amortization of purchased intangible assets | 801 | 0 | 1,096 | 0 |
Total operating expenses | 12,596 | 6,252 | 29,291 | 19,499 |
Income (loss) from operations | (5,219) | 838 | (8,942) | 1,032 |
Interest income (expense), net | (83) | 91 | (43) | 147 |
Other income (expense), net | 129 | (12) | 76 | (14) |
Income (loss) before income taxes | (5,173) | 917 | (8,909) | 1,165 |
Provision for income taxes | 43 | 60 | 128 | 114 |
Net income (loss) | $ (5,216) | $ 857 | $ (9,037) | $ 1,051 |
Net income (loss) per share - basic | $ (0.19) | $ 0.04 | $ (0.37) | $ 0.05 |
Net income (loss) per share - diluted | $ (0.19) | $ 0.04 | $ (0.37) | $ 0.05 |
Weighted-average common shares - basic | 27,048 | 22,270 | 24,369 | 21,237 |
Weighted-average common shares - diluted | 27,048 | 23,304 | 24,369 | 22,632 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders Equity (unaudited) - USD ($) shares in Thousands, $ in Thousands | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Other Comprehensive Income / Loss | Total |
Beginning balance, shares at Jun. 30, 2018 | 18,908 | ||||
Beginning balance, value at Jun. 30, 2018 | $ 2 | $ 212,995 | $ (189,555) | $ 371 | $ 23,813 |
Cumulative effect of accounting change | 582 | 582 | |||
Shares issued pursuant to equity offering, net, shares | 2,700 | ||||
Shares issued pursuant to equity offering, net, value | 9,774 | 9,774 | |||
Shares issued pursuant to stock awards, net shares | 797 | ||||
Shares issued pursuant to stock awards, net value | 1,183 | 1,183 | |||
Tax withholding paid on behalf of employees for restricted shares | (188) | (188) | |||
Share-based compensation | 1,260 | 1,260 | |||
Net income (loss) | 1,051 | 1,051 | |||
Ending balance, shares at Mar. 31, 2019 | 22,405 | ||||
Ending balance, value at Mar. 31, 2019 | $ 2 | 225,024 | (187,922) | 371 | 37,475 |
Beginning balance, shares at Dec. 31, 2018 | 22,213 | ||||
Beginning balance, value at Dec. 31, 2018 | $ 2 | 224,422 | (188,779) | 371 | 36,016 |
Shares issued pursuant to stock awards, net shares | 192 | ||||
Shares issued pursuant to stock awards, net value | 290 | 290 | |||
Tax withholding paid on behalf of employees for restricted shares | (19) | (19) | |||
Share-based compensation | 331 | 331 | |||
Net income (loss) | 857 | 857 | |||
Ending balance, shares at Mar. 31, 2019 | 22,405 | ||||
Ending balance, value at Mar. 31, 2019 | $ 2 | 225,024 | (187,922) | 371 | 37,475 |
Beginning balance, shares at Jun. 30, 2019 | 22,812 | ||||
Beginning balance, value at Jun. 30, 2019 | $ 2 | 226,274 | (189,381) | 371 | 37,266 |
Shares issued pursuant to stock awards, net shares | 778 | ||||
Shares issued pursuant to stock awards, net value | 717 | 717 | |||
Tax withholding paid on behalf of employees for restricted shares | (224) | (224) | |||
Share-based compensation | 2,649 | 2,649 | |||
Issuance of shares related to acquisition, shares | 4,279 | ||||
Issuance of shares related to acquisition, value | $ 1 | 15,573 | 15,574 | ||
Net income (loss) | (9,037) | (9,037) | |||
Ending balance, shares at Mar. 31, 2020 | 27,869 | ||||
Ending balance, value at Mar. 31, 2020 | $ 3 | 244,989 | (198,418) | 371 | 46,945 |
Beginning balance, shares at Dec. 31, 2019 | 23,317 | ||||
Beginning balance, value at Dec. 31, 2019 | $ 2 | 228,107 | (193,202) | 371 | 35,278 |
Shares issued pursuant to stock awards, net shares | 273 | ||||
Shares issued pursuant to stock awards, net value | 237 | 237 | |||
Tax withholding paid on behalf of employees for restricted shares | (60) | (60) | |||
Share-based compensation | 1,132 | 1,132 | |||
Issuance of shares related to acquisition, shares | 4,279 | ||||
Issuance of shares related to acquisition, value | $ 1 | 15,573 | 15,574 | ||
Net income (loss) | (5,216) | (5,216) | |||
Ending balance, shares at Mar. 31, 2020 | 27,869 | ||||
Ending balance, value at Mar. 31, 2020 | $ 3 | $ 244,989 | $ (198,418) | $ 371 | $ 46,945 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities | ||
Net income (loss) | $ (9,037) | $ 1,051 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Share-based compensation | 2,649 | 1,260 |
Depreciation and amortization | 535 | 341 |
Amortization of purchased intangible assets | 1,096 | 0 |
Amortization of manufacturing profit in acquired inventory associated with acquisition | 204 | 0 |
Loss on disposal of property and equipment | 0 | 10 |
Amortization of deferred debt issuance costs | 4 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 2,274 | (2,930) |
Inventories | 1,951 | (1,832) |
Contract manufacturers' receivable | 890 | 143 |
Prepaid expenses and other current assets | (327) | (257) |
Other assets | 679 | (1) |
Accounts payable | (1,645) | 794 |
Accrued payroll and related expenses | 1,210 | (1,000) |
Warranty reserve | (25) | 11 |
Other liabilities | (3,893) | 813 |
Net cash used in operating activities | (3,435) | (1,597) |
Investing activities | ||
Purchases of property and equipment | (471) | (383) |
Cash payment for acquisitions, net of cash and cash equivalents acquired | (13,402) | 0 |
Net cash used in investing activities | (13,873) | (383) |
Financing activities | ||
Net proceeds from issuances of common stock | 717 | 10,860 |
Tax withholding paid on behalf of employees for restricted shares | (224) | (188) |
Net proceeds from issuance of debt | 5,893 | 0 |
Payment of borrowings on term loan | (375) | 0 |
Payment of lease liabilities | (8) | (48) |
Net cash provided by financing activities | 6,003 | 10,624 |
Increase (decrease) in cash, cash equivalents, and restricted cash | (11,305) | 8,644 |
Cash, cash equivalents, and restricted cash at beginning of period | 18,282 | 9,568 |
Cash, cash equivalents, and restricted cash at end of period | $ 6,977 | $ 18,212 |
1. Summary of Significant Accou
1. Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies The Company Lantronix, Inc., which we refer to herein as the Company, Lantronix, we, our, or us, is a global provider of secure data access and management solutions for Internet of Things (“IoT”) assets. Our mission is to be the leading supplier of IoT and related Information Technology (“IT”) management solutions that enable companies to dramatically simplify the creation, deployment, and management of IoT projects while providing secure access to data for applications and people. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Lantronix have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Securities and Exchange Commission (“SEC”) Regulation S-X. Accordingly, they should be read in conjunction with the audited consolidated financial statements and notes thereto for the fiscal year ended June 30, 2019, included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2019, which was filed with the SEC on September 11, 2019. The unaudited condensed consolidated financial statements contain all normal recurring accruals and adjustments that in the opinion of management, are necessary to present fairly the consolidated financial position of Lantronix at March 31, 2020, the consolidated results of our operations for the three and nine months ended March 31, 2020 and our consolidated cash flows for the nine months ended March 31, 2020. All intercompany accounts and transactions have been eliminated. Accounting measurements at interim dates inherently involve greater reliance on estimates than at year-end. The results of operations for the three and nine months ended March 31, 2020 are not necessarily indicative of the results to be expected for the full year or any future interim periods. The spread of the COVID-19 virus during the quarter ended March 31, 2020 has caused an economic downturn on a global scale, as well as significant volatility in the financial markets. In March 2020, the World Health Organization declared the spread of the COVID-19 virus a pandemic. Government reactions to the public health crisis with mitigation measures have created significant uncertainties in the U.S. and global economies. The extent to which the coronavirus pandemic impacts our business, operations and financial results will depend on numerous evolving factors that we may not be able to accurately predict and which may cause the actual results to differ from the estimates and assumptions we are required to make in the preparation of financial statements according to U.S. GAAP. In order to protect our employee population and comply with local directives, most of our employees transitioned to remote working arrangements commencing in March and still continuing through the date hereof. To facilitate the increased data traffic associated with remote access, we have upgraded some of our information technology systems. We have also made changes relating to videoconferencing by providing most of our employees with a new videoconferencing and collaboration platform to accommodate better remote collaboration and communication. To date, remote working has not had a significant adverse impact on our financial results or our operations, including, financial reporting and disclosure controls and procedures. Reclassifications Certain reclassifications have been made to the prior fiscal year financial information to conform with the current fiscal year presentation. Recent Accounting Pronouncements Shared-Based Compensation On July 1, 2019, Lantronix adopted Accounting Standard Update No. 2018-07 that expands the scope of existing share-based compensation guidance for employees. The standard includes share-based payment transactions for acquiring goods and services from nonemployees, whereby share-based payments to nonemployees will be measured and recorded at the fair value of the equity instruments that an entity is obligated to issue on the grant date. The adoption of the standard did not have a material impact on our financial statements. Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-02 (“ASU 2016-02” or “Topic 842”) that revises lease accounting guidance. Most prominent among the changes in the standard is the recognition of right-of-use (“ROU”) assets and lease liabilities based on the present value of lease payments over the lease term by lessees for those leases classified as operating leases under the existing guidance. We adopted Topic 842 on July 1, 2019 using the modified retrospective approach by applying the new standard to leases existing at the date of adoption and not restating comparative prior periods. The adoption did not have a material impact on our results of operations or cash flows. Refer to Note 4 |
2. Business Combinations
2. Business Combinations | 9 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Business Combinations | 2. Business Combinations Acquisition of Maestro On July 5, 2019 (the "Acquisition Date"), Lantronix acquired all outstanding shares of Maestro Wireless Solutions Limited, a Hong Kong private company limited by shares (“MWS”), Fargo Telecom Asia Limited, a Hong Kong private company limited by shares (“FTA” and together with MWS and their respective subsidiaries, the “Acquired Companies” or “Maestro”) for $5,355,000 in cash. The acquisition provides complementary cellular connectivity technologies to our portfolio of IoT solutions. July 5, 2019 (provisional) Cash and cash equivalents $ 282 Accounts receivable 1,320 Inventories, net 1,611 Other assets 600 Purchased intangible assets 1,910 Goodwill 2,876 Accounts payable (1,536 ) Other liabilities (1,708 ) Total consideration $ 5,355 The factors that contributed to a purchase price resulting in the recognition of goodwill include our belief that the acquisition will create a more diverse IoT company with respect to product offerings and our belief that we are committed to improving cost structures in accordance with our operational and restructuring plans which should result in a realization of cost savings and an improvement of overall efficiencies. Acquisition-related costs were expensed in the periods in which the costs were incurred. The valuation of identifiable intangible assets and their estimated useful lives are as follows: Asset Fair Value Weighted-Average Useful Life (years) (In thousands) Developed technology $ 1,530 5.0 Customer relationship 100 2.0 Order backlog 110 1.0 Non-compete agreements 30 2.0 Trade name 140 1.0 The intangible assets are amortized on a straight-line basis over the estimated weighted-average useful lives. Acquisition of Intrinsyc On January 16, 2020 (the “Closing Date”), we completed the previously announced acquisition of Intrinsyc Technologies Corporation (“Intrinsyc”), a company existing under the laws of British Columbia, Canada. Pursuant to the terms of the agreement, dated October 30, 2019 (the “Agreement”), by and between Lantronix and Intrinsyc, all of the outstanding common shares of Intrinsyc were acquired by Lantronix. Under the Agreement, we paid $0.50 and 0.2275 of a share of our common stock for each issued and outstanding common share of Intrinsyc. Pursuant to the Agreement, we paid, in the aggregate, approximately $11,519,000 in cash and issued approximately 4,279,000 shares of Lantronix common stock to Intrinsyc shareholders. Following the acquisition, Intrinsyc shareholders owned just under 16% of the outstanding shares of Lantronix common stock. Pursuant to the Agreement, Lantronix agreed to exchange certain options to purchase Intrinsyc shares and restricted stock units (“RSUs”) for cash payments, Lantronix common stock options or RSUs or a combination thereof, as further outlined in the Agreement. The acquisition provides us with complementary IoT computing and embedded product development capabilities and expands our IoT market opportunity. We recorded Intrinsyc’s tangible and intangible assets and liabilities based on their estimated fair values as of the Closing Date and allocated the remaining purchase consideration to goodwill. Our valuation assumptions of acquired assets and assumed liabilities require significant estimates, especially with respect to intangible assets. The consideration allocation set forth herein is preliminary and may be revised as additional information becomes available during the measurement period which could be up to 12 months from the Closing Date. Any such revisions or changes may be material. A summary of the purchase consideration for Intrinsyc is as follows (in thousands): Cash consideration to selling shareholders $ 11,022 Cash consideration for vested equity awards 497 Share consideration 15,574 Total purchase consideration $ 27,093 The preliminary purchase price allocation is as follows (in thousands): January 16, 2020 (provisional) Cash and cash equivalents $ 3,190 Accounts receivable 5,524 Inventories, net 5,281 Other assets 2,624 Purchased intangible assets 12,576 Goodwill 3,449 Accounts payable (1,552 ) Other liabilities (3,999 ) Total Consideration $ 27,093 The factors that contributed to a purchase price resulting in the recognition of goodwill include our belief that the acquisition will create a more diverse IoT company with respect to product offerings and our belief that we are committed to improving cost structures in accordance with our operational and restructuring plans which should result in a realization of cost savings and an improvement of overall efficiencies. Acquisition-related costs were expensed in the periods in which the costs were incurred. The valuation of identifiable intangible assets and their estimated useful lives are as follows: Asset Fair Value Weighted Average Useful Life (years) (In thousands) Developed technology $ 2,311 5.0 Customer relationship 8,930 6.0 Order backlog 730 1.2 Non-compete agreements 370 1.0 Trademarks and trade name 235 1.0 The intangible assets are amortized on a straight-line basis over the estimated weighted-average useful lives. Supplemental Pro Forma Information The following supplemental pro forma data summarizes the Company’s results of operations for the periods presented, as if we completed the acquisitions of Maestro and Intrinsyc as of the first day of fiscal 2019. The supplemental pro forma data reports actual operating results adjusted to include the pro forma effect and timing of the impact in amortization expense of identified intangible assets, restructuring costs, the purchase accounting effect on inventories acquired, and transaction costs. In accordance with the pro forma acquisition date, we recorded in the fiscal 2019 supplemental pro forma data (i) cost of goods sold from manufacturing profit in acquired inventory of $262,000, (ii) acquisition related restructuring costs of $2,477,000 and (iii) acquisition-related costs of $2,246,000, with a corresponding reduction in the fiscal 2020 supplemental proforma data. Additionally, we recorded $2,947,000 of amortization expense in the fiscal 2019 supplemental pro-forma data, and additional amortization expense of $862,000 in the fiscal 2020 supplemental pro forma data to represent the amount related to assets that would have been fully amortized. Net sales related to products and services from the acquisitions of Maestro and Intrinsyc contributed approximately 31% to 35% of net sales for the nine months ended March 31, 2020. Post-acquisition net sales and earnings on a standalone basis are generally impracticable to determine, as on the Acquisition Date and Closing Date, we implemented a plan developed prior to the completion of the acquisitions and began to immediately integrate the acquisition into existing operations, engineering groups, sales distribution networks and management structure. Supplemental pro forma data is as follows: Nine Months Ended March 31, 2020 2019 (In thousands, except per share amounts) Pro forma net revenue $ 56,486 $ 63,787 Pro forma net loss $ (4,752 ) $ (8,207 ) Pro forma net loss per share Basic $ (0.18 ) $ (0.32 ) Diluted $ (0.18 ) $ (0.32 ) |
3. Revenue
3. Revenue | 9 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 3. Revenue Revenue is recognized upon the transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We apply the following five-step approach in determining the amount and timing of revenue to be recognized: (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 and (v) recognizing revenue when the performance obligation is satisfied. On occasion we enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Revenue is recognized net of (i) any taxes collected from customers, which are subsequently remitted to governmental authorities and (ii) shipping and handling costs collected from customers. Product Shipments Most of our product revenue is recognized as a distinct single performance obligation when products are tendered to a carrier for delivery, which represents the point in time that our customer obtains control of the promised products. A smaller portion of our product revenue is recognized when our customer receives delivery of the promised products. A significant portion of our products are sold to distributors under agreements which contain (i) limited rights to return unsold products and (ii) price adjustment provisions, both of which are accounted for as variable consideration when estimating the amount of revenue to recognize. We base our estimates for returns and price adjustments primarily on historical experience; however, we also consider contractual allowances, approved pricing adjustments and other known or anticipated returns and price adjustments in a given period. Such estimates are generally made at the time of shipment to the customer and updated at the end of each reporting period as additional information becomes available and only to the extent that it is probable that a significant reversal of any incremental revenue will not occur. Our estimates of accrued variable consideration are included in other current liabilities in the accompanying condensed unaudited consolidated balance sheets. Services Revenues from our extended warranty and services are generally recognized ratably over the applicable service period. We expect revenues from future sales of our software-as-a-service (“SaaS”) products to be recognized ratably over the applicable service period as well. Revenues from professional engineering services are generally recognized as services are performed. As a result of our recent acquisition of Intrinsyc (see Note 2 · Time & Materials (“T&M”) – services consist of revenues from software modification, consulting implementation, training and integration services. These services are set forth separately in the contractual arrangements such that the total price of the customer arrangement is expected to vary depending on the actual time and materials incurred based on the customer’s needs. · Fixed Price – arrangements to render specific consulting and software modification services which tend to be more complex. Performance obligations for T&M contracts qualify for the "Right to Invoice" practical expedient within the revenue guidance. Under this practical expedient, we may recognize revenue, over time, in the amount to which we have a right to invoice. In addition, we are not required to estimate variable consideration upon inception of the contract and reassess the estimate each reporting period. We determined that this method best represents the transfer of services as, upon billing, we have a right to consideration from a customer in an amount that directly corresponds with the value to the customer of our performance completed to date. We recognize revenue on fixed price contracts, over time, using the proportion of our actual costs incurred (generally labor hours expended) to the total costs expected to complete the contract performance obligation. We determined that this method best represents the transfer of services as the proportion closely depicts the efforts or inputs completed towards the satisfaction of a fixed price contract performance obligation. Multiple Performance Obligations From time to time, we may enter into contracts with customers that include promises to transfer multiple deliverables that may include sales of products, professional engineering services and other product qualification or certification services. Determining whether the deliverables in such arrangements are considered distinct performance obligations that should be accounted for separately versus together often requires judgment. We consider performance obligations to be distinct when the customer can benefit from the promised good or service on its own or by combining it with other resources readily available and when the promised good or service is separately identifiable from other promised goods or services in the contract. In such arrangements, we allocate revenue on a relative standalone selling price basis by maximizing the use of observable inputs to determine the standalone selling price for each performance obligation. Net Revenue by Product Line and Geographic Region We organize our products and solutions into three product lines: IoT, IT Management and Other. Our IoT products typically connect to one or more existing machines or are built into new industrial devices to provide network connectivity. Our IT Management product line includes out-of-band management, console management, power management, and keyboard-video-mouse (commonly referred to as KVM) products that provide remote access to IT and networking infrastructure deployed in test labs, data centers, branch offices and server rooms. We categorize products that are non-focus or end-of-life as Other. We conduct our business globally and manage our sales teams by three geographic regions: the Americas; Europe, Middle East, and Africa (“EMEA”); and Asia Pacific Japan (“APJ”). The following tables present our net revenue by product line and by geographic region. Net revenues by geographic region are based on the “bill-to” location of our customers: Three Months Ended March 31, Nine Months Ended March 31, 2020 2019 2020 2019 (In thousands) (In thousands) IoT $ 13,922 $ 8,935 $ 35,323 $ 26,972 IT Management 2,424 3,210 6,557 9,199 Other 166 199 601 566 $ 16,512 $ 12,344 $ 42,481 $ 36,737 Three Months Ended March 31, Nine Months Ended March 31, 2020 2019 2020 2019 (In thousands) (In thousands) Americas $ 10,126 $ 6,866 $ 21,730 $ 19,962 EMEA 3,612 3,757 12,495 11,357 Asia Pacific Japan 2,774 1,721 8,256 5,418 $ 16,512 $ 12,344 $ 42,481 $ 36,737 The following table presents product revenues and service revenues as a percentage of our total net revenue: Three Months Ended March 31, Nine Months Ended March 31, 2020 2019 2020 2019 Product revenues 93% 100% 97% 99% Service revenues 7% 0% 3% 1% Service revenue is comprised primarily of professional services, software license subscriptions, and extended warranties. Contract Balances In certain instances, the timing of revenue recognition may differ from the timing of invoicing to our customers. We record a contract asset receivable when revenue is recognized prior to invoicing, and a contract or deferred revenue liability when revenue is recognized subsequent to invoicing. With respect to product shipments, we expect to fulfill contract obligations within one year and so we have elected not to separately disclose the amount nor the timing of recognition of these remaining performance obligations. For contract balances related to contracts that include services and multiple performance obligations, refer to the deferred revenue discussion below. Deferred Revenue Deferred revenue is primarily comprised of unearned revenue related to our extended warranty services and certain software services. These services are generally invoiced at the beginning of the contract period and revenue is recognized ratably over the service period. Current and non-current deferred revenue balances represent revenue allocated to the remaining unsatisfied performance obligations at the end of a reporting period and are respectively included in other current liabilities and other non-current liabilities in the accompanying unaudited condensed consolidated balance sheets. The following table presents the changes in our deferred revenue balance for the nine months ended March 31, 2020 (in thousands): Balance, July 1, 2019 $ 486 New performance obligations 238 Performance obligations assumed from acquisitions 738 Recognition of revenue as a result of satisfying performance obligations (579 ) Balance, March 31, 2020 $ 883 Less: non-current portion of deferred revenue (158 ) Current portion, March 31, 2020 $ 725 We expect to recognize substantially all of the non-current portion of deferred revenue over the next two to four years. |
4. Leases
4. Leases | 9 Months Ended |
Mar. 31, 2020 | |
Lessee Disclosure [Abstract] | |
Leases | 4. Leases On July 1, 2019, we adopted Topic 842 and elected the available practical expedient to recognize the cumulative effect of initially adopting the standard as an adjustment to the opening balance sheet of the period of adoption (i.e., July 1, 2019). We also elected other available practical expedients and will not separate lease components from non-lease components for office leases, or reassess historical lease classification, whether existing or expired contracts are or contain leases, or the initial direct costs for existing leases as of July 1, 2019. The unaudited condensed consolidated balance sheets and results from operations for reporting periods beginning after July 1, 2019 are presented under Topic 842, while prior period amounts are not adjusted and continue to be reported in accordance with the historic accounting under Topic 840. Adoption of the standard resulted in the recording of net operating and financing lease ROU assets and corresponding operating and financing lease liabilities of $984,000 and $1,114,000, respectively, on July 1, 2019. The adoption of the standard did not materially affect the unaudited condensed consolidated statements of operations and had no impact on cash flows. Our leases include office buildings for facilities worldwide and car leases in Germany, which are all classified as operating leases. We also have financing leases related to office equipment in the United States. On October 1, 2019 we entered into a lease agreement for an office in Hyderabad, India, which replaced and expanded our existing office space there. In May 2020 we entered into an extension to our office lease for our corporate headquarters in Irvine, California. The amendment extends the term of the lease by 13 months through January 2022. We determine if an arrangement is a lease at inception. Certain leases include renewal options that are under the Company's sole discretion. The renewal options were included in the ROU asset and lease liability calculation if it is reasonably assured that we will exercise the option. As our leases generally do not provide an implicit rate, we use our collateralized incremental borrowing rate based on the information available at the lease commencement date, including lease term, in determining the present value of lease payments. Lease expense for these leases is recognized on a straight-line basis over the lease term. Components of lease expense and supplemental cash flow information: Nine months ended March 31, 2020 Components of lease expense (In thousands) Operating lease cost $ 1,127 Financing lease cost $ 10 Supplemental cash flow information Cash paid for amounts included in the measurement of operating lease liabilities $ 871 Cash paid for amounts included in the measurement of financing lease liabilities $ 8 Right-of-use assets obtained in exchange for lease obligation $ 1,119 The weighted-average remaining lease term is 1.5 years. The weighted-average discount rate is 6.03 percent. Maturities of lease liabilities as of March 31, 2020 were as follows: Years ending June 30, Operating Financing (In thousands) 2020 $ 368 $ 2 2021 1,077 9 2022 674 9 2023 376 9 2024 274 4 Thereafter 65 – Total remaining lease payments 2,834 33 less: imputed interest (243 ) – Lease liability $ 2,591 $ 33 Reported as: Current liabilities $ (1,142 ) $ (9 ) Non-current liabilities $ (1,449 ) $ (24 ) The lease liabilities and ROU assets as of March 31, 2020 include leases assumed in the acquisitions of Maestro and Intrinsyc if the remaining lease term at the acquisition date was determined to exceed one year. Refer to Note 2 |
5. Supplemental Financial Infor
5. Supplemental Financial Information | 9 Months Ended |
Mar. 31, 2020 | |
Supplemental Financial Information | |
Supplemental Financial Information | 5. Supplemental Financial Information Inventories Inventories are stated at the lower of cost (first-in, first-out) or net realizable value and consist of the following: March 31, June 30, 2020 2019 (In thousands) Finished goods $ 8,651 $ 6,084 Raw materials 6,595 4,425 Inventories, net $ 15,246 $ 10,509 Other Liabilities The following table presents details of our other liabilities: March 31, June 30, 2020 2019 (In thousands) Current Accrued variable consideration $ 1,383 $ 1,313 Customer deposits and refunds 250 168 Accrued raw materials purchases 681 1,155 Deferred revenue 725 328 Lease liability 1,151 4 Taxes payable 407 322 Accrued operating expenses 2,090 1,290 Total other current liabilities $ 6,687 $ 4,580 Non-current Lease liability $ 1,473 $ 48 Deferred revenue 158 158 Total other non-current liabilities $ 1,631 $ 206 Computation of Net Income (Loss) per Share Basic and diluted net income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding during the applicable period. The following table presents the computation of net income (loss) per share: Three Months Ended Nine Months Ended March 31, March 31, 2020 2019 2020 2019 (In thousands, except per share data) Numerator: Net income (loss) $ (5,216 ) $ 857 $ (9,037 ) $ 1,051 Denominator: Weighted-average common shares outstanding - basic 27,048 22,270 24,369 21,237 Effect of dilutive securities: – 1,034 – 1,395 Denominator for net income (loss) per share - diluted 27,048 23,304 24,369 22,632 Net income (loss) per share - basic $ (0.19 ) $ 0.04 $ (0.37 ) $ 0.05 Net income (loss) per share - diluted $ (0.19 ) $ 0.04 $ (0.37 ) $ 0.05 The following table presents the common stock equivalents excluded from the diluted net loss per share calculation, because they were anti-dilutive for the periods presented. These excluded common stock equivalents could be dilutive in the future. Three Months Ended Nine Months Ended March 31, March 31, 2020 2019 2020 2019 (In thousands) Common stock equivalents 1,487 153 1,640 66 Severance and Related Charges Current Fiscal Year During the nine months ended March 31, 2020, we continued a plan to realign certain personnel resources to better fit our current business needs, which includes identifying cost savings and synergies to be gained from the acquisitions of Maestro and Intrinsyc. Additionally, the current year charges include costs incurred pursuant to change-in-control agreements for certain employees of Intrinsyc. The following table presents details of the liability we recorded related to these activities: Nine Months Ended March 31, 2020 (In thousands) Beginning balance $ 651 Charges 3,365 Payments (2,786 ) Ending balance $ 1,230 The ending balance is recorded in accrued payroll and related expenses on the accompanying unaudited condensed consolidated balance sheet at March 31, 2020. Prior Fiscal Year During the nine months ended March 31, 2019, we incurred charges totaling approximately $323,000 in severance-related costs in connection with a plan to realign certain personnel and cost structure needs. Supplemental Cash Flow Information The following table presents non-cash investing transactions excluded from the accompanying unaudited condensed consolidated statements of cash flows: Nine Months Ended March 31, 2020 2019 (In thousands) Share consideration for acquisition of Intrinsyc $ 15,574 $ – Accrued property and equipment paid for in the subsequent period $ 5 $ 276 Accrued stock option exercise proceeds $ – $ 97 |
6. Warranty Reserve
6. Warranty Reserve | 9 Months Ended |
Mar. 31, 2020 | |
Product Warranties Disclosures [Abstract] | |
Warranty Reserve | 6. Warranty Reserve The standard warranty periods we provide for our products typically range from one to five years. We establish reserves for estimated product warranty costs at the time revenue is recognized based upon our historical warranty experience, and for any known or anticipated product warranty issues. The following table presents details of our warranty reserve: Nine Months Ended Year Ended March 31, June 30, 2020 2019 (In thousands) Beginning balance $ 116 $ 99 Warranty reserve assumed from acquisition of Intrinsyc 118 – Charged to cost of revenue 63 96 Usage (88 ) (79 ) Ending balance $ 209 $ 116 |
7. Bank Loan Agreements
7. Bank Loan Agreements | 9 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Bank Loan Agreements | 7. Bank Loan Agreements On November 12, 2019, we entered into a Second Amended and Restated Loan and Security Agreement (“Amended Agreement”) with Silicon Valley Bank (“SVB”), which amended, restated and superseded our previous agreement with SVB in its entirety. Pursuant to the Amended Agreement, SVB made available to us a senior secured revolving line of credit of up to $6,000,000 (“Revolving Facility”) and a senior secured term loan of $6,000,000 (“Term Loan Facility”). Advances under the Revolving Facility may be borrowed from time to time prior to November 12, 2021, subject to the satisfaction of certain conditions, and may be used to fund our working capital and general business requirements. The $6,000,000 proceeds of the Term Loan Facility were drawn in full in November 2019 and were used to fund our acquisition of Intrinsyc, which occurred in January 2020 (refer to Note 2 The interest rate on the Revolving Facility floats at a rate per annum equal to the greater of the prime rate and 5.00 percent. The interest rate on the Term Loan Facility floats at a rate per annum equal to the greater of 1.00 percent above the prime rate and 6.00 percent. We may elect to repay and reborrow the amounts outstanding under the Revolving Facility at any time prior to the maturity date of the Revolving Facility without premium or penalty. We may elect to repay the Term Loan Facility at any time without premium or penalty in minimum amounts equal to at least $1,000,000. A commitment fee in the amount of $60,000 was paid to SVB on the closing date and a $10,000 anniversary fee is payable to SVB on the earliest to occur of the one year anniversary of the effective date, the termination of the Amended Agreement or the Revolving Facility, or the occurrence of an event of default. The following table summarizes our outstanding debt: March 31, June 30, 2020 2019 (In thousands) Outstanding borrowings on Term Loan Facility $ 5,625 $ – Less: Unamortized debt issuance costs (103 ) – Net Carrying amount of debt 5,522 – Less: Current portion (1,472 ) – Non-current portion $ 4,050 $ – During the three and nine months ended March 31, 2020 we recognized $94,000 and $140,000, respectively of interest expense in our unaudited condensed consolidated statements of operations related to interest and amortization of debt issuance associated with the outstanding Term Loan Facility. The Amended Agreement includes a financial covenant that requires that we maintain a minimum cash balance of $3,000,000 at SVB, as measured at the end of each month. The Amended Agreement also requires that we do not exceed a maximum leverage ratio, calculated as the ratio of funded debt to the consolidated trailing 12 month earnings before interest, taxes, depreciation and amortization, and certain other allowable exclusions of (i) 3.0 to 1.0 for each calendar quarter ending December 31, 2019 through and including December 31, 2020, (ii) 2.5 to 1.0 for each calendar quarter ending March 31, 2021 through and including December 31, 2021, and (iii) 2.0 to 1.0 for each calendar quarter ending after January 1, 2022. We are currently in compliance with all covenants. |
8. Stockholders' Equity
8. Stockholders' Equity | 9 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | 8. Stockholders’ Equity Stock Incentive Plans Our stock incentive plans permit the granting of stock options (both incentive and nonqualified stock options), RSUs, stock appreciation rights, non-vested stock, and performance shares to certain employees, directors and consultants. As of March 31, 2020, no stock appreciation rights or non-vested stock was outstanding. Stock Options The following table presents a summary of activity during the nine months ended March 31, 2020 with respect to our stock options: Weighted- Average Number of Exercise Price Shares per Share (In thousands) Balance of options outstanding at June 30, 2019 3,147 $ 2.29 Granted 248 3.33 Forfeited (179 ) 2.35 Expired (76 ) 2.21 Exercised (834 ) 1.76 Balance of options outstanding at March 31, 2020 2,306 $ 2.58 Restricted Stock Units The following table presents a summary of activity during the nine months ended March 31, 2020 with respect to our RSUs: Weighted- Average Grant Date Number of Fair Value Shares per Share (In thousands) Balance of RSUs outstanding at June 30, 2019 866 $ 4.24 Granted 431 3.32 Vested (203 ) 4.68 Forfeited (109 ) 3.76 Balance of RSUs outstanding at March 31, 2020 985 $ 3.80 Performance Stock Units In October 2019, we granted 975,000 RSUs with performance-based vesting requirements (“performance stock units” or “PSUs”) to certain executive employees. In February 2020, we granted an additional 70,000 RSUs with performance-based vesting requirements and vesting schedule identical to those granted in October 2019. One third of the PSUs will be eligible to vest in each of the three years beginning in fiscal 2020 if certain earnings per share, revenue targets and market conditions are met. The estimate of the grant date fair value and related share-based compensation expense included the use of a Monte Carlo simulation which incorporates estimates of the potential outcomes of the market condition of these awards. Employee Stock Purchase Plan Our 2013 Employee Stock Purchase Plan (“ESPP”) is intended to provide employees with an opportunity to purchase our common stock through accumulated payroll deductions at the end of a specified purchase period. Each of our employees (including officers) is eligible to participate in our ESPP, subject to certain limitations as set forth in our ESPP. The following table presents a summary of activity under our ESPP during the nine months ended March 31, 2020: Number of Shares (In thousands) Shares available for issuance at June 30, 2019 517 Shares issued (64 ) Shares available for issuance at March 31, 2020 453 Share-Based Compensation Expense The following table presents a summary of share-based compensation expense included in each functional line item on our accompanying unaudited condensed consolidated statements of operations: Three Months Ended Nine Months Ended March 31, March 31, 2020 2019 2020 2019 (In thousands) Cost of revenue $ 70 $ 22 $ 142 $ 62 Selling, general and administrative 939 213 2,176 950 Research and development 123 96 331 248 Total share-based compensation expense $ 1,132 $ 331 $ 2,649 $ 1,260 The following table presents the remaining unrecognized share-based compensation expense related to our outstanding share-based awards as of March 31, 2020: Remaining Remaining Unrecognized Weighted- Compensation Average Years Expense To Recognize (In thousands) Stock options $ 1,494 2.6 RSUs 3,309 3.2 PSUs 1,205 2.3 Stock purchase rights under ESPP 13 0.1 $ 6,021 If there are any modifications or cancellations of the underlying unvested share-based awards, we may be required to accelerate, increase or cancel remaining unearned share-based compensation expense. Future share-based compensation expense and unearned share-based compensation will increase to the extent that we grant additional share-based awards. |
9. Income Taxes
9. Income Taxes | 9 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes We utilize the liability method of accounting for income taxes. The following table presents our effective tax rates based upon our provision for income taxes for the periods shown: Three Months Ended Nine Months Ended March 31, March 31, 2020 2019 2020 2019 Effective tax rate 1% 7% 1% 10% The difference between our effective tax rates in the periods presented above and the federal statutory rate is primarily due to a tax benefit from our domestic losses being recorded with a full valuation allowance, as well as the effect of foreign earnings taxed at rates differing from the federal statutory rate. We record net deferred tax assets to the extent we believe it is more likely than not that these assets will be realized. Due to our cumulative losses and uncertainty of generating future taxable income, we have provided a full valuation allowance against our net deferred tax assets as of March 31, 2020 and June 30, 2019. |
10. Commitments and Contingenci
10. Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies From time to time, we are involved in various legal proceedings and claims arising in the ordinary course of our business. Although the results of legal proceedings and claims cannot be predicted with certainty, we currently believe that the final outcome of these ordinary course matters will not, individually or in the aggregate, have a material adverse effect on our business, operating results, financial condition or cash flows. However, regardless of the outcome, litigation can have an adverse impact on us because of legal costs, diversion of management time and resources, and other factors. |
11. Subsequent Event
11. Subsequent Event | 9 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | 11. Subsequent Event Small Business Administration Loan In April 2020, we executed a promissory note (the “Note”) in the principal amount of approximately $2,438,000 as part of the Paycheck Protection Program (the “PPP Loan”) administered by the Small Business Administration (the “SBA”) and authorized under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The PPP Loan was made through Silicon Valley Bank. On May 6, 2020, we repaid the Note in full. |
1. Summary of Significant Acc_2
1. Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
The Company | The Company Lantronix, Inc., which we refer to herein as the Company, Lantronix, we, our, or us, is a global provider of secure data access and management solutions for Internet of Things (“IoT”) assets. Our mission is to be the leading supplier of IoT and related Information Technology (“IT”) management solutions that enable companies to dramatically simplify the creation, deployment, and management of IoT projects while providing secure access to data for applications and people. |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Lantronix have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Securities and Exchange Commission (“SEC”) Regulation S-X. Accordingly, they should be read in conjunction with the audited consolidated financial statements and notes thereto for the fiscal year ended June 30, 2019, included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2019, which was filed with the SEC on September 11, 2019. The unaudited condensed consolidated financial statements contain all normal recurring accruals and adjustments that in the opinion of management, are necessary to present fairly the consolidated financial position of Lantronix at March 31, 2020, the consolidated results of our operations for the three and nine months ended March 31, 2020 and our consolidated cash flows for the nine months ended March 31, 2020. All intercompany accounts and transactions have been eliminated. Accounting measurements at interim dates inherently involve greater reliance on estimates than at year-end. The results of operations for the three and nine months ended March 31, 2020 are not necessarily indicative of the results to be expected for the full year or any future interim periods. The spread of the COVID-19 virus during the quarter ended March 31, 2020 has caused an economic downturn on a global scale, as well as significant volatility in the financial markets. In March 2020, the World Health Organization declared the spread of the COVID-19 virus a pandemic. Government reactions to the public health crisis with mitigation measures have created significant uncertainties in the U.S. and global economies. The extent to which the coronavirus pandemic impacts our business, operations and financial results will depend on numerous evolving factors that we may not be able to accurately predict and which may cause the actual results to differ from the estimates and assumptions we are required to make in the preparation of financial statements according to U.S. GAAP. In order to protect our employee population and comply with local directives, most of our employees transitioned to remote working arrangements commencing in March and still continuing through the date hereof. To facilitate the increased data traffic associated with remote access, we have upgraded some of our information technology systems. We have also made changes relating to videoconferencing by providing most of our employees with a new videoconferencing and collaboration platform to accommodate better remote collaboration and communication. To date, remote working has not had a significant adverse impact on our financial results or our operations, including, financial reporting and disclosure controls and procedures. |
Reclassifications | Reclassifications Certain reclassifications have been made to the prior fiscal year financial information to conform with the current fiscal year presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Shared-Based Compensation On July 1, 2019, Lantronix adopted Accounting Standard Update No. 2018-07 that expands the scope of existing share-based compensation guidance for employees. The standard includes share-based payment transactions for acquiring goods and services from nonemployees, whereby share-based payments to nonemployees will be measured and recorded at the fair value of the equity instruments that an entity is obligated to issue on the grant date. The adoption of the standard did not have a material impact on our financial statements. Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-02 (“ASU 2016-02” or “Topic 842”) that revises lease accounting guidance. Most prominent among the changes in the standard is the recognition of right-of-use (“ROU”) assets and lease liabilities based on the present value of lease payments over the lease term by lessees for those leases classified as operating leases under the existing guidance. We adopted Topic 842 on July 1, 2019 using the modified retrospective approach by applying the new standard to leases existing at the date of adoption and not restating comparative prior periods. The adoption did not have a material impact on our results of operations or cash flows. Refer to Note 4 |
2. Business Combinations (Table
2. Business Combinations (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Supplemental Pro Forma Information | Nine Months Ended March 31, 2020 2019 (In thousands, except per share amounts) Pro forma net revenue $ 56,486 $ 63,787 Pro forma net loss $ (4,752 ) $ (8,207 ) Pro forma net loss per share Basic $ (0.18 ) $ (0.32 ) Diluted $ (0.18 ) $ (0.32 ) |
Maestro Wireless Solutions [Member] | |
Purchase price allocation | July 5, 2019 (provisional) Cash and cash equivalents $ 282 Accounts receivable 1,320 Inventories, net 1,611 Other assets 600 Purchased intangible assets 1,910 Goodwill 2,876 Accounts payable (1,536 ) Other liabilities (1,708 ) Total consideration $ 5,355 |
Valuation of identifiable intangible assets | Asset Fair Value Weighted-Average Useful Life (years) (In thousands) Developed technology $ 1,530 5.0 Customer relationship 100 2.0 Order backlog 110 1.0 Non-compete agreements 30 2.0 Trade name 140 1.0 |
Intrinsyc [Member] | |
Purchase price allocation | A summary of the purchase consideration for Intrinsyc is as follows (in thousands): Cash consideration to selling shareholders $ 11,022 Cash consideration for vested equity awards 497 Share consideration 15,574 Total purchase consideration $ 27,093 The preliminary purchase price allocation is as follows (in thousands): January 16, 2020 (provisional) Cash and cash equivalents $ 3,190 Accounts receivable 5,524 Inventories, net 5,281 Other assets 2,624 Purchased intangible assets 12,576 Goodwill 3,449 Accounts payable (1,552 ) Other liabilities (3,999 ) Total Consideration $ 27,093 |
Valuation of identifiable intangible assets | Asset Fair Value Weighted Average Useful Life (years) (In thousands) Developed technology $ 2,311 5.0 Customer relationship 8,930 6.0 Order backlog 730 1.2 Non-compete agreements 370 1.0 Trademarks and trade name 235 1.0 |
3. Revenue (Tables)
3. Revenue (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Net revenue by product lines | Net revenues by geographic region are based on the “bill-to” location of our customers: Three Months Ended March 31, Nine Months Ended March 31, 2020 2019 2020 2019 (In thousands) (In thousands) IoT $ 13,922 $ 8,935 $ 35,323 $ 26,972 IT Management 2,424 3,210 6,557 9,199 Other 166 199 601 566 $ 16,512 $ 12,344 $ 42,481 $ 36,737 |
Net revenue by geographic region | Three Months Ended March 31, Nine Months Ended March 31, 2020 2019 2020 2019 (In thousands) (In thousands) Americas $ 10,126 $ 6,866 $ 21,730 $ 19,962 EMEA 3,612 3,757 12,495 11,357 Asia Pacific Japan 2,774 1,721 8,256 5,418 $ 16,512 $ 12,344 $ 42,481 $ 36,737 |
Schedule of percentage total net revenue | The following table presents product revenues and service revenues as a percentage of our total net revenue: Three Months Ended March 31, Nine Months Ended March 31, 2020 2019 2020 2019 Product revenues 93% 100% 97% 99% Service revenues 7% 0% 3% 1% |
Deferred revenue rollforward | The following table presents the changes in our deferred revenue balance for the nine months ended March 31, 2020 (in thousands): Balance, July 1, 2019 $ 486 New performance obligations 238 Performance obligations assumed from acquisitions 738 Recognition of revenue as a result of satisfying performance obligations (579 ) Balance, March 31, 2020 $ 883 Less: non-current portion of deferred revenue (158 ) Current portion, March 31, 2020 $ 725 |
4. Leases (Tables)
4. Leases (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Lessee Disclosure [Abstract] | |
Components of lease expense | Components of lease expense and supplemental cash flow information: Nine months ended March 31, 2020 Components of lease expense (In thousands) Operating lease cost $ 1,127 Financing lease cost $ 10 Supplemental cash flow information Cash paid for amounts included in the measurement of operating lease liabilities $ 871 Cash paid for amounts included in the measurement of financing lease liabilities $ 8 Right-of-use assets obtained in exchange for lease obligation $ 1,119 |
Maturities of lease liabilities | Maturities of lease liabilities as of March 31, 2020 were as follows: Years ending June 30, Operating Financing (In thousands) 2020 $ 368 $ 2 2021 1,077 9 2022 674 9 2023 376 9 2024 274 4 Thereafter 65 – Total remaining lease payments 2,834 33 less: imputed interest (243 ) – Lease liability $ 2,591 $ 33 Reported as: Current liabilities $ (1,142 ) $ (9 ) Non-current liabilities $ (1,449 ) $ (24 ) |
5. Supplemental Financial Inf_2
5. Supplemental Financial Information (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Supplemental Financial Information | |
Schedule of Inventory | Inventories are stated at the lower of cost (first-in, first-out) or net realizable value and consist of the following: March 31, June 30, 2020 2019 (In thousands) Finished goods $ 8,651 $ 6,084 Raw materials 6,595 4,425 Inventories, net $ 15,246 $ 10,509 |
Schedule of Other Liabilities | The following table presents details of our other liabilities: March 31, June 30, 2020 2019 (In thousands) Current Accrued variable consideration $ 1,383 $ 1,313 Customer deposits and refunds 250 168 Accrued raw materials purchases 681 1,155 Deferred revenue 725 328 Lease liability 1,151 4 Taxes payable 407 322 Accrued operating expenses 2,090 1,290 Total other current liabilities $ 6,687 $ 4,580 Non-current Lease liability $ 1,473 $ 48 Deferred revenue 158 158 Total other non-current liabilities $ 1,631 $ 206 |
Schedule of Computation of Net Income (Loss) per Share | Three Months Ended Nine Months Ended March 31, March 31, 2020 2019 2020 2019 (In thousands, except per share data) Numerator: Net income (loss) $ (5,216 ) $ 857 $ (9,037 ) $ 1,051 Denominator: Weighted-average common shares outstanding - basic 27,048 22,270 24,369 21,237 Effect of dilutive securities: – 1,034 – 1,395 Denominator for net income (loss) per share - diluted 27,048 23,304 24,369 22,632 Net income (loss) per share - basic $ (0.19 ) $ 0.04 $ (0.37 ) $ 0.05 Net income (loss) per share - diluted $ (0.19 ) $ 0.04 $ (0.37 ) $ 0.05 |
Schedule of Common Stock Equivalents | These excluded common stock equivalents could be dilutive in the future. Three Months Ended Nine Months Ended March 31, March 31, 2020 2019 2020 2019 (In thousands) Common stock equivalents 1,487 153 1,640 66 |
Schedule of severance and related charges | The following table presents details of the liability we recorded related to these activities: Nine Months Ended March 31, 2020 (In thousands) Beginning balance $ 651 Charges 3,365 Payments (2,786 ) Ending balance $ 1,230 |
Schedule of Supplemental Cash Flow Information | Nine Months Ended March 31, 2020 2019 (In thousands) Share consideration for acquisition of Intrinsyc $ 15,574 $ – Accrued property and equipment paid for in the subsequent period $ 5 $ 276 Accrued stock option exercise proceeds $ – $ 97 |
6. Warranty Reserve (Tables)
6. Warranty Reserve (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Product Warranties Disclosures [Abstract] | |
Schedule of warranty reserve | The following table presents details of our warranty reserve: Nine Months Ended Year Ended March 31, June 30, 2020 2019 (In thousands) Beginning balance $ 116 $ 99 Warranty reserve assumed from acquisition of Intrinsyc 118 – Charged to cost of revenue 63 96 Usage (88 ) (79 ) Ending balance $ 209 $ 116 |
7. Bank Loan Agreements (Tables
7. Bank Loan Agreements (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Summary of outstanding debt | The following table summarizes our outstanding debt: March 31, June 30, 2020 2019 (In thousands) Outstanding borrowings on Term Loan Facility $ 5,625 $ – Less: Unamortized debt issuance costs (103 ) – Net Carrying amount of debt 5,522 – Less: Current portion (1,472 ) – Non-current portion $ 4,050 $ – |
8. Stockholders' Equity (Tables
8. Stockholders' Equity (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Schedule of share-based compensation expense by functional line item | The following table presents a summary of share-based compensation expense included in each functional line item on our accompanying unaudited condensed consolidated statements of operations: Three Months Ended Nine Months Ended March 31, March 31, 2020 2019 2020 2019 (In thousands) Cost of revenue $ 70 $ 22 $ 142 $ 62 Selling, general and administrative 939 213 2,176 950 Research and development 123 96 331 248 Total share-based compensation expense $ 1,132 $ 331 $ 2,649 $ 1,260 |
Schedule of unrecognized share-based compensation expense | The following table presents the remaining unrecognized share-based compensation expense related to our outstanding share-based awards as of March 31, 2020: Remaining Remaining Unrecognized Weighted- Compensation Average Years Expense To Recognize (In thousands) Stock options $ 1,494 2.6 RSUs 3,309 3.2 PSUs 1,205 2.3 Stock purchase rights under ESPP 13 0.1 $ 6,021 |
Stock Options [Member] | |
Summary of stock option activity | The following table presents a summary of activity during the nine months ended March 31, 2020 with respect to our stock options: Weighted- Average Number of Exercise Price Shares per Share (In thousands) Balance of options outstanding at June 30, 2019 3,147 $ 2.29 Granted 248 3.33 Forfeited (179 ) 2.35 Expired (76 ) 2.21 Exercised (834 ) 1.76 Balance of options outstanding at March 31, 2020 2,306 $ 2.58 |
Restricted Stock Units (RSUs) [Member] | |
Summary of stock option activity | The following table presents a summary of activity during the nine months ended March 31, 2020 with respect to our RSUs: Weighted- Average Grant Date Number of Fair Value Shares per Share (In thousands) Balance of RSUs outstanding at June 30, 2019 866 $ 4.24 Granted 431 3.32 Vested (203 ) 4.68 Forfeited (109 ) 3.76 Balance of RSUs outstanding at March 31, 2020 985 $ 3.80 |
ESPP [Member] | |
Summary of stock option activity | The following table presents a summary of activity under our ESPP during the nine months ended March 31, 2020: Number of Shares (In thousands) Shares available for issuance at June 30, 2019 517 Shares issued (64 ) Shares available for issuance at March 31, 2020 453 |
9. Income Taxes (Tables)
9. Income Taxes (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Reconciliation | The following table presents our effective tax rates based upon our provision for income taxes for the periods shown: Three Months Ended Nine Months Ended March 31, March 31, 2020 2019 2020 2019 Effective tax rate 1% 7% 1% 10% |
2. Business Combinations (Detai
2. Business Combinations (Details - Purchase price allocation) - USD ($) $ in Thousands | 7 Months Ended | 9 Months Ended | |||
Jan. 16, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Jul. 05, 2019 | Jun. 30, 2019 | |
Payments to acquire business | $ 13,402 | $ 0 | |||
Goodwill | $ 15,813 | $ 9,488 | |||
Maestro Wireless Solutions [Member] | |||||
Cash and cash equivalents | $ 282 | ||||
Accounts receivable | 1,320 | ||||
Inventories, net | 1,611 | ||||
Purchased intangible assets | 1,910 | ||||
Other non-current assets | 600 | ||||
Goodwill | 2,876 | ||||
Accounts payable | (1,536) | ||||
Other liabilities | (1,708) | ||||
Total consideration | $ 5,355 | ||||
Intrinsyc [Member] | |||||
Total purchase consideration | $ 27,093 | ||||
Cash and cash equivalents | 3,190 | ||||
Accounts receivable | 5,524 | ||||
Inventories, net | 5,281 | ||||
Purchased intangible assets | 12,576 | ||||
Other non-current assets | 2,624 | ||||
Goodwill | 3,449 | ||||
Accounts payable | (1,552) | ||||
Other liabilities | (3,999) | ||||
Total consideration | 27,093 | ||||
Intrinsyc [Member] | Vested Equity Awards [Member] | |||||
Payments to acquire business | 497 | ||||
Intrinsyc [Member] | Share Consideration [Member] | |||||
Payments to acquire business | 15,574 | ||||
Intrinsyc [Member] | Selling Shareholders [Member] | |||||
Payments to acquire business | $ 11,022 |
2. Business Combinations (Det_2
2. Business Combinations (Details - Intangible asset valuation) - USD ($) $ in Thousands | Jul. 05, 2019 | Jan. 16, 2020 |
Maestro Wireless Solutions [Member] | ||
Fair value of intangible assets assumed in acquisition | $ 1,910 | |
Maestro Wireless Solutions [Member] | Developed Technology [Member] | ||
Fair value of intangible assets assumed in acquisition | $ 1,530 | |
Weighted Average Useful Life (years) | 5 years | |
Maestro Wireless Solutions [Member] | Customer Relationships [Member] | ||
Fair value of intangible assets assumed in acquisition | $ 100 | |
Weighted Average Useful Life (years) | 2 years | |
Maestro Wireless Solutions [Member] | Order Backlog [Member] | ||
Fair value of intangible assets assumed in acquisition | $ 110 | |
Weighted Average Useful Life (years) | 1 year | |
Maestro Wireless Solutions [Member] | Noncompete Agreements [Member] | ||
Fair value of intangible assets assumed in acquisition | $ 30 | |
Weighted Average Useful Life (years) | 2 years | |
Maestro Wireless Solutions [Member] | Trade Names [Member] | ||
Fair value of intangible assets assumed in acquisition | $ 140 | |
Weighted Average Useful Life (years) | 1 year | |
Intrinsyc [Member] | ||
Fair value of intangible assets assumed in acquisition | $ 12,576 | |
Intrinsyc [Member] | Developed Technology [Member] | ||
Fair value of intangible assets assumed in acquisition | $ 2,311 | |
Weighted Average Useful Life (years) | 5 years | |
Intrinsyc [Member] | Customer Relationships [Member] | ||
Fair value of intangible assets assumed in acquisition | $ 8,930 | |
Weighted Average Useful Life (years) | 6 years | |
Intrinsyc [Member] | Order Backlog [Member] | ||
Fair value of intangible assets assumed in acquisition | $ 730 | |
Weighted Average Useful Life (years) | 1 year 2 months 12 days | |
Intrinsyc [Member] | Noncompete Agreements [Member] | ||
Fair value of intangible assets assumed in acquisition | $ 370 | |
Weighted Average Useful Life (years) | 1 year | |
Intrinsyc [Member] | Trade Names [Member] | ||
Weighted Average Useful Life (years) | 1 year | |
Intrinsyc [Member] | Trademarks and Trade Names [Member] | ||
Fair value of intangible assets assumed in acquisition | $ 235 |
2. Business Combinations (Det_3
2. Business Combinations (Details - Pro forma data) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Business Combinations [Abstract] | ||
Pro forma net revenue | $ 56,486 | $ 63,787 |
Pro forma net loss | $ (4,752) | $ (8,207) |
Pro forma net loss per share - basic | $ (0.18) | $ (0.32) |
Pro forma net loss per share - diluted | $ (0.18) | $ (0.32) |
2. Business Combinations (Det_4
2. Business Combinations (Details Narrative) - USD ($) shares in Thousands, $ in Thousands | 7 Months Ended | 9 Months Ended | 12 Months Ended | |
Jan. 16, 2020 | Mar. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | |
Intrinsyc [Member] | ||||
Cash paid for acquisition | $ 11,519 | |||
Stock issued for acquisition | 4,279 | |||
Intrinsyc [Member] | Revenues [Member] | ||||
Concentration percent | 35.00% | |||
Maestro Wireless Solutions [Member] | Revenues [Member] | ||||
Concentration percent | 31.00% | |||
Manufacturing profit [Member] | ||||
Proforma expenses | $ 262 | |||
Restructuring Costs [Member] | ||||
Proforma expenses | 2,477 | |||
Acquisition Related Costs [Member] | ||||
Proforma expenses | 2,246 | |||
Amortization Expense [Member] | ||||
Proforma expenses | $ 862 | $ 2,947 |
3. Revenue (Details - Revenues
3. Revenue (Details - Revenues by product line) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues | $ 16,512 | $ 12,344 | $ 42,481 | $ 36,737 |
IoT [Member] | ||||
Revenues | 13,922 | 8,935 | 35,323 | 26,972 |
IT Management [Member] | ||||
Revenues | 2,424 | 3,210 | 6,557 | 9,199 |
Other [Member] | ||||
Revenues | $ 166 | $ 199 | $ 601 | $ 566 |
3. Revenue (Details - Revenue b
3. Revenue (Details - Revenue by Geography) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues | $ 16,512 | $ 12,344 | $ 42,481 | $ 36,737 |
Americas [Member] | ||||
Revenues | 10,126 | 6,866 | 21,730 | 19,962 |
Europe, Middle East, Africa [Member] | ||||
Revenues | 3,612 | 3,757 | 12,495 | 11,357 |
Asia Pacific [Member] | ||||
Revenues | $ 2,774 | $ 1,721 | $ 8,256 | $ 5,418 |
3. Revenue (Details - Percentag
3. Revenue (Details - Percentage of total net revenue) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Product [Member] | ||||
Concentration Risk, Percentage | 93.00% | 100.00% | 97.00% | 99.00% |
Service [Member] | ||||
Concentration Risk, Percentage | 7.00% | 0.00% | 3.00% | 1.00% |
3. Revenue (Details - Changes i
3. Revenue (Details - Changes in Deferred Revenue) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2019 | |
Movement in deferred revenue | ||
Deferred revenue, beginning balance | $ 486 | |
New performance obligations | 238 | |
Performance obligations assumed from acquisition | 738 | |
Recognition of revenue as a result of satisying performance obligations | (579) | |
Deferred revenue, ending balance | 883 | |
Less: non-current portion of deferred revenue | (158) | $ (158) |
Current portion ending balance | $ 725 | $ 328 |
4. Leases (Details - Components
4. Leases (Details - Components of lease expense) $ in Thousands | 9 Months Ended |
Mar. 31, 2020USD ($) | |
Components of lease expense | |
Operating lease cost | $ 1,127 |
Financing lease cost | 10 |
Supplemental cash flow information | |
Cash paid for amounts included in the measurement of operating lease liabilities | 871 |
Cash paid for amounts included in the measurement of financing lease liabilities | 8 |
Right-of-use assets obtained in exchange for lease obligation | $ 1,119 |
4. Leases (Details - Maturities
4. Leases (Details - Maturities of lease liabilities) $ in Thousands | Mar. 31, 2020USD ($) |
Operating lease maturities | |
2020 (remainder of the year) | $ 368 |
2021 | 1,077 |
2022 | 674 |
2023 | 376 |
2024 | 274 |
Thereafter | 65 |
Total remaining lease payments | 2,834 |
less: imputed interest | (243) |
Lease liability | 2,591 |
Current liabilities | (1,142) |
Long-term liabilities | (1,449) |
Financing lease maturities | |
2020 (remainder of the year) | 2 |
2021 | 9 |
2022 | 9 |
2023 | 9 |
2024 | 4 |
Thereafter | 0 |
Total remaining lease payments | 33 |
less: imputed interest | 0 |
Lease liability | 33 |
Current liabilities | (9) |
Long-term liabilities | $ (24) |
4. Leases (Details Narrative)
4. Leases (Details Narrative) - USD ($) $ in Thousands | Mar. 31, 2020 | Jul. 02, 2019 |
Weighted average remaining lease term | 1 year 6 months | |
Weighted average discount rate | 6.03% | |
Operating and finance lease asset | $ 984 | |
custom:OperatingAndFinanceLeaseLiability | $ 1,114 | |
Other Assets [Member] | Acquisitions [Member] | ||
Operating and finance lease asset | $ 2,982 |
5. Supplemental Financial Inf_3
5. Supplemental Financial Information (Details - Inventories) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Supplemental Financial Information | ||
Finished goods | $ 8,651 | $ 6,084 |
Raw materials | 6,595 | 4,425 |
Inventories, net | $ 15,246 | $ 10,509 |
5. Supplemental Financial Inf_4
5. Supplemental Financial Information (Details - Other liabilities) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Current | ||
Accrued variable consideration | $ 1,383 | $ 1,313 |
Customer deposits and refunds | 250 | 168 |
Accrued raw materials purchases | 681 | 1,155 |
Deferred revenue | 725 | 328 |
Lease liability | 1,151 | 4 |
Taxes payable | 407 | 322 |
Accrued operating expenses | 2,090 | 1,290 |
Total other current liabilities | 6,687 | 4,580 |
Non-current | ||
Lease liability | 1,473 | 48 |
Deferred revenue | 158 | 158 |
Total other non-current liabilities | $ 1,631 | $ 206 |
5. Supplemental Financial Inf_5
5. Supplemental Financial Information (Details - Net Loss per Share) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator: | ||||
Net loss | $ (5,216) | $ 857 | $ (9,037) | $ 1,051 |
Denominator: | ||||
Weighted-average common shares outstanding - basic | 27,048 | 22,270 | 24,369 | 21,237 |
Effect of dilutive securities | 0 | 1,034 | 0 | 1,395 |
Demonimator for net income (loss) per share- diluted | 27,048 | 23,304 | 24,369 | 22,632 |
Net income (loss) per share - basic | $ (0.19) | $ 0.04 | $ (0.37) | $ 0.05 |
Net income (loss) per share - diluted | $ (0.19) | $ 0.04 | $ (0.37) | $ 0.05 |
5. Supplemental Financial Inf_6
5. Supplemental Financial Information (Details - Equivalents) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Supplemental Financial Information | ||||
Common stock equivalents | 1,487 | 153 | 1,640 | 66 |
5. Supplemental Financial Inf_7
5. Supplemental Financial Information (Details - Severance of Related Charges) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Supplemental Financial Information | ||
Severance payable, beginning balance | $ 651 | |
Charges | 3,365 | $ 323 |
Payments | (2,786) | |
Severance payable, ending balance | $ 1,230 |
5. Supplemental Financial Inf_8
5. Supplemental Financial Information (Details - Non-cash acquisition) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Supplemental Cash Flow Information | ||
Share consideration for acquisition of Intrinsyc | $ 15,574 | $ 0 |
Accrued property and equipment paid for in the subsequent period | 5 | 276 |
Accrued stock option exercise proceeds | $ 0 | $ 97 |
5. Supplemental Financial Inf_9
5. Supplemental Financial Information (Details Narrative) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Supplemental Financial Information | ||
Severance costs | $ 3,365 | $ 323 |
6. Warranty Reserve (Details -
6. Warranty Reserve (Details - Warranty reserve) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Jun. 30, 2019 | |
Product Warranties Disclosures [Abstract] | ||
Beginning balance | $ 116 | $ 99 |
Warranty reserve assumed from acquisition of Intrinsyc | 118 | 0 |
Charged to cost of revenue | 63 | 96 |
Usage | (88) | (79) |
Ending balance | $ 209 | $ 116 |
7. Bank Loan Agreements (Detail
7. Bank Loan Agreements (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Debt Disclosure [Abstract] | ||
Outstanding borrowings on Term Loan Facility | $ 5,625 | $ 0 |
Less: Unamortized debt issuance costs | (103) | 0 |
Net Carrying amount of debt | 5,522 | 0 |
Less: Current portion | (1,472) | 0 |
Non-current portion | $ 4,050 | $ 0 |
7. Bank Loan Agreements (Deta_2
7. Bank Loan Agreements (Details Narrative) $ in Thousands | 3 Months Ended | 9 Months Ended |
Mar. 31, 2020USD ($) | Mar. 31, 2020USD ($) | |
Credit line maximum borrowing amount | $ 6,000 | $ 6,000 |
Interest expense | 94 | $ 140 |
Amended Agreement SVB [Member] | Revolving Facility [Member] | ||
Revolving Line | $6.0 million revolving line | |
Credit line maximum borrowing amount | $ 6,000 | $ 6,000 |
Maturity date | Nov. 12, 2021 | |
Interest rate description | The interest rate on the Revolving Facility floats at a rate per annum equal to the greater of the prime rate and 5.00 percent. | |
Amended Agreement SVB [Member] | Term Loan Facility [Member] | ||
Maturity date | Jan. 1, 2024 | |
Interest rate description | The interest rate on the Term Loan Facility floats at a rate per annum equal to the greater of 1.00 percent above the prime rate and 6.00 percent. |
8. Stockholders Equity (Details
8. Stockholders Equity (Details - Option activity) - Stock Options [Member] shares in Thousands | 9 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Number of shares | |
Number of Shares Options Outstanding, Beginning | shares | 3,147 |
Number of Shares Options Granted | shares | 248 |
Number of Shares Options Forfeited | shares | (179) |
Number of Shares Options Expired | shares | (76) |
Number of Shares Options Exercised | shares | (834) |
Number of Shares Options Outstanding, Ending | shares | 2,306 |
Weighted Average Exercise Price per share | |
Exercise Price Outstanding, Beginning | $ / shares | $ 2.29 |
Exercise Price Granted | $ / shares | 3.33 |
Exercise Price Forfeited | $ / shares | 2.35 |
Exercise Price Expired | $ / shares | 2.21 |
Exercise Price Exercised | $ / shares | 1.76 |
Exercise Price Outstanding, Ending | $ / shares | $ 2.58 |
8. Stockholders Equity (Detai_2
8. Stockholders Equity (Details - RSU activity) - Restricted Stock Units (RSUs) [Member] shares in Thousands | 9 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Number of RSU's Shares | |
Balance of RSU's, beginning | shares | 866 |
Granted | shares | 431 |
Vested | shares | (203) |
Forfeited | shares | (109) |
Balance of RSU's, ending | shares | 985 |
Weighted Average Grant Date Fair Value per share | |
RSU Shares Weighted-Average Grant-Date Fair Value per Share, beginning | $ / shares | $ 4.24 |
RSU Shares Granted, Weighted-Average Grant-Date Fair Value per Share | $ / shares | 3.32 |
RSU Shares Vested, Weighted-Average Grant-Date Fair Value per Share | $ / shares | 4.68 |
RSU Shares Forfeited, Weighed-Average Grant Date Fair Value per Share | $ / shares | 3.76 |
RSU Shares Weighted-Average Grant-Date Fair Value per Share, ending | $ / shares | $ 3.8 |
8. Stockholders Equity (Detai_3
8. Stockholders Equity (Details - ESPP activity) - ESPP [Member] shares in Thousands | 9 Months Ended |
Mar. 31, 2020shares | |
Shares available for issuance, beginning balance | 517 |
Shares issued | (64) |
Shares available for future issuance, ending balance | 453 |
8. Stockholders Equity (Detai_4
8. Stockholders Equity (Details - Share based compensation) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Total share-based compensation | $ 1,132 | $ 331 | $ 2,649 | $ 1,260 |
Cost of revenues [Member] | ||||
Total share-based compensation | 70 | 22 | 142 | 62 |
Selling, general and administrative [Member] | ||||
Total share-based compensation | 939 | 213 | 2,176 | 950 |
Research and development [Member] | ||||
Total share-based compensation | $ 123 | $ 96 | $ 331 | $ 248 |
8. Stockholders Equity (Detai_5
8. Stockholders Equity (Details - Unrecognized expense) $ in Thousands | 9 Months Ended |
Mar. 31, 2020USD ($) | |
Unrecognized share-based compensation expense | $ 6,021 |
Stock Options [Member] | |
Unrecognized share-based compensation expense | $ 1,494 |
Weighted average years to recognize | 2 years 7 months 6 days |
Restricted Stock Units (RSUs) [Member] | |
Unrecognized share-based compensation expense | $ 3,309 |
Weighted average years to recognize | 3 years 2 months 12 days |
Performance Stock Units (PSUs) [Member] | |
Unrecognized share-based compensation expense | $ 1,205 |
Weighted average years to recognize | 2 years 3 months 19 days |
ESPP [Member] | |
Unrecognized share-based compensation expense | $ 13 |
Weighted average years to recognize | 1 month 6 days |
8. Stockholders' Equity (Detail
8. Stockholders' Equity (Details Narrative) - shares shares in Thousands | 1 Months Ended | |
Feb. 29, 2020 | Oct. 31, 2019 | |
Restricted Stock Units (RSUs) [Member] | ||
Stock options granted | 70 | 975 |
9. Income Taxes (Details)
9. Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 1.00% | 7.00% | 1.00% | 10.00% |