Cover
Cover - USD ($) | 12 Months Ended | ||
Jun. 30, 2021 | Aug. 19, 2021 | Dec. 31, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Jun. 30, 2021 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2021 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity File Number | 1-16027 | ||
Entity Registrant Name | LANTRONIX, INC. | ||
Entity Central Index Key | 0001114925 | ||
Entity Tax Identification Number | 33-0362767 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Address Line One | 7535 Irvine Center Drive | ||
Entity Address, Address Line Two | Suite 100 | ||
Entity Address, City or Town | Irvine | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92618 | ||
City Area Code | 949 | ||
Local Phone Number | 453-3990 | ||
Title of 12(b) Security | Common Stock, $0.0001 par value | ||
Trading Symbol | LTRX | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 94,232,000 | ||
Entity Common Stock, Shares Outstanding | 29,128,745 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 9,739 | $ 7,691 |
Accounts receivable (net of allowance for doubtful accounts of $321 and $460 at June 30, 2021 and 2020, respectively) | 13,515 | 11,411 |
Inventories, net | 15,059 | 13,781 |
Contract manufacturers' receivable | 1,960 | 337 |
Prepaid expenses and other current assets | 2,880 | 1,290 |
Total current assets | 43,153 | 34,510 |
Property and equipment, net | 1,577 | 1,587 |
Goodwill | 15,810 | 15,810 |
Purchased intangible assets, net | 9,355 | 12,449 |
Lease right-of-use assets | 2,431 | 3,345 |
Other assets | 240 | 232 |
Total assets | 72,566 | 67,933 |
Current Liabilities: | ||
Accounts payable | 9,122 | 5,331 |
Accrued payroll and related expenses | 4,942 | 2,658 |
Short-term debt, net | 1,472 | 1,472 |
Other current liabilities | 7,328 | 6,308 |
Total current liabilities | 22,864 | 15,769 |
Long-term debt, net | 2,210 | 3,682 |
Other non-current liabilities | 1,396 | 1,962 |
Total liabilities | 26,470 | 21,413 |
Stockholders' equity: | ||
Preferred stock, $0.0001 par value; 5,000,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock, $0.0001 par value; 100,000,000 shares authorized; 29,087,714 and 28,231,054 shares issued and outstanding at June 30, 2021 and 2020, respectively | 3 | 3 |
Additional paid-in capital | 249,885 | 246,265 |
Accumulated deficit | (204,163) | (200,119) |
Accumulated other comprehensive income | 371 | 371 |
Total stockholders' equity | 46,096 | 46,520 |
Total liabilities and stockholders' equity | $ 72,566 | $ 67,933 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for Receivables | $ 321 | $ 460 |
Preferred Stock par value | $ 0.0001 | $ 0.0001 |
Preferred Stock Authorized | 5,000,000 | 5,000,000 |
Preferred Stock Issued | 0 | 0 |
Preferred Stock Outstanding | 0 | 0 |
Common Stock par value | $ 0.0001 | $ 0.0001 |
Common Stock Authorized | 100,000,000 | 100,000,000 |
Common Stock Issued | 29,087,714 | 28,231,054 |
Common Stock Outstanding | 29,087,714 | 28,231,054 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||
Net revenue | $ 71,477 | $ 59,878 |
Cost of revenue | 38,452 | 32,978 |
Gross profit | 33,025 | 26,900 |
Operating expenses: | ||
Selling, general and administrative | 20,808 | 19,582 |
Research and development | 11,113 | 9,691 |
Restructuring, severance and related charges | 506 | 3,844 |
Acquisition-related costs | 841 | 2,284 |
Amortization of purchased intangible assets | 3,094 | 2,037 |
Total operating expenses | 36,362 | 37,438 |
Loss from operations | (3,337) | (10,538) |
Interest income (expense), net | (315) | (133) |
Other expense, net | (197) | 77 |
Loss before income taxes | (3,849) | (10,594) |
Provision for income taxes | 195 | 144 |
Net loss and comprehensive loss | $ (4,044) | $ (10,738) |
Net loss per share - basic and diluted | $ (0.14) | $ (0.42) |
Weighted-average common shares - basic and diluted | 28,708 | 25,281 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Beginning balance, value at Jun. 30, 2019 | $ 2 | $ 226,274 | $ (189,381) | $ 371 | $ 37,266 |
Beginning balance, shares at Jun. 30, 2019 | 22,812 | ||||
Shares issued pursuant to stock awards, net | 1,158 | 1,158 | |||
Shares issued pursuant to stock awards, net shares | 1,140 | ||||
Tax withholding paid on behalf of employees for restricted shares | (379) | (379) | |||
Share-based compensation | 3,639 | 3,639 | |||
Issuance of shares related to acquisition | $ 1 | 15,573 | 15,574 | ||
Issuance of shares related to acquisition, shares | 4,279 | ||||
Net loss | (10,738) | (10,738) | |||
Ending balance, value at Jun. 30, 2020 | $ 3 | 246,265 | (200,119) | 371 | 46,520 |
Ending balance, shares at Jun. 30, 2020 | 28,231 | ||||
Shares issued pursuant to stock awards, net | 913 | 913 | |||
Shares issued pursuant to stock awards, net shares | 857 | ||||
Tax withholding paid on behalf of employees for restricted shares | (877) | (877) | |||
Share-based compensation | 3,584 | 3,584 | |||
Net loss | (4,044) | (4,044) | |||
Ending balance, value at Jun. 30, 2021 | $ 3 | $ 249,885 | $ (204,163) | $ 371 | $ 46,096 |
Ending balance, shares at Jun. 30, 2021 | 29,088 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Operating activities | ||
Net loss | $ (4,044) | $ (10,738) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Share-based compensation | 3,584 | 3,639 |
Amortization of purchased intangible assets | 3,094 | 2,037 |
Depreciation and amortization | 817 | 768 |
Amortization of manufacturing profit in acquired inventory associated with acquisitions | 7 | 255 |
Loss on disposal of property and equipment | 193 | 16 |
Amortization of deferred debt issuance costs | 28 | 18 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,104) | 2,809 |
Inventories | (1,285) | 3,365 |
Contract manufacturers' receivable | (1,623) | 987 |
Prepaid expenses and other current assets | (1,590) | 366 |
Lease right-of-use assets | 1,527 | 1,172 |
Other assets | (8) | (107) |
Accounts payable | 3,574 | (2,599) |
Accrued payroll and related expenses | 2,284 | 349 |
Other liabilities | (150) | (4,858) |
Net cash provided by (used in) operating activities | 4,304 | (2,521) |
Investing activities | ||
Purchases of property and equipment | (783) | (572) |
Cash payment for acquisitions, net of cash and cash equivalents acquired | 0 | (13,402) |
Net cash used in investing activities | (783) | (13,974) |
Financing activities | ||
Net proceeds from issuances of common stock | 913 | 1,158 |
Tax withholding paid on behalf of employees for restricted shares | (877) | (379) |
Net proceeds from issuance of debt | 0 | 5,886 |
Payment of borrowings on term loan | (1,500) | (750) |
Payment of lease liabilities | (9) | (11) |
Net cash (used in) provided by financing activities | (1,473) | 5,904 |
Increase (decrease) in cash and cash equivalents | 2,048 | (10,591) |
Cash and cash equivalents at beginning of year | 7,691 | 18,282 |
Cash and cash equivalents at end of year | 9,739 | 7,691 |
Supplemental disclosure of cash flow information | ||
Interest paid | 297 | 218 |
Income taxes paid | $ 200 | $ 101 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2021 | |
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 software as a service (“SaaS”), engineering services, and hardware for Edge Computing, the Internet of Things (“IoT”), and Remote Environment Management (“REM”). Lantronix enables its customers to provide reliable and secure solutions while accelerating their time to market. Lantronix’s products and services dramatically simplify operations through the creation, development, deployment and management of customer projects at scale while providing quality, reliability and security. We were incorporated in California in 1989 and re-incorporated in Delaware in 2000. Basis of Presentation The consolidated financial statements include the accounts of Lantronix and our wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The industry in which we operate is characterized by rapid technological change. As a result, estimates made in preparing the consolidated financial statements include the allowance for doubtful accounts, revenue recognition, business combinations, inventory valuation, goodwill valuation, deferred income tax asset valuation allowances, share-based compensation, restructuring charges and warranty reserves. To the extent there are material differences between our estimates and actual results, future results of operations will be affected. Impact of COVID-19 The spread of the COVID-19 virus has caused an economic downturn on a global scale, as well as significant volatility in the financial markets. The extent to which the COVID-19 pandemic impacts our business, operations and financial results continues to 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 2020, and many continue to primarily work remotely as of 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 an 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 to the current fiscal year presentation. Revenue Recognition Refer to Note 2 Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are stated at the amount we expect to collect, which is net of an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. Our evaluation of the collectability of customer accounts receivable is based on various factors, including the length of time the receivables are past due, our history of bad debts and general industry conditions. Accounts that are deemed uncollectible are written off against the allowance for doubtful accounts. Concentration of Credit Risk Our accounts receivable are primarily derived from revenue earned from customers located throughout North America, Europe and Asia. We perform periodic credit evaluations of our customers’ financial condition and maintain allowances for potential credit losses. Credit losses have historically been within our expectations. We generally do not require collateral or other security from our customers. Fair Value of Financial Instruments Our financial instruments consist primarily of cash and cash equivalents, accounts receivable, contract manufacturers’ receivable, accounts payable, and accrued liabilities. The fair value of a financial instrument is the amount that would be received in an asset sale or paid to transfer a liability in an orderly transaction between unaffiliated market participants. Assets and liabilities measured at fair value are categorized based on whether or not the inputs are observable in the market and the degree to which the inputs are observable. The categorization of financial instruments within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is prioritized into three levels (with Level 3 being the lowest) defined as follows: Level 1: Level 2: Level 3: The hierarchy noted above requires us to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. We do not have any assets or liabilities that were measured at fair value on a recurring basis, and during the fiscal years ended June 30, 2021 and 2020 we did not have any assets or liabilities that were measured at fair value on a non-recurring basis. We believe all of our financial instruments’ recorded values approximate their current fair values because of the nature and short duration of these instruments. Foreign Currency Remeasurement The functional currency for all our foreign subsidiaries is currently the U.S. dollar. Non-monetary and monetary foreign currency assets and liabilities are valued in U.S. dollars at historical and end-of-period exchange rates, respectively. Exchange gains and losses from foreign currency transactions and remeasurements are recognized in the consolidated statements of operations. Translation adjustments for foreign subsidiaries whose functional currencies were previously their respective local currencies are suspended in accumulated other comprehensive income. Accumulated Other Comprehensive Income Accumulated other comprehensive income is composed of accumulated translation adjustments as of June 30, 2021 and 2020. We did not have any other comprehensive income or losses during the fiscal years ended June 30, 2021 or 2020. Cash and Cash Equivalents Cash and cash equivalents consist of cash and short-term investments, with original maturities of 90 days or less. Inventories Inventories are stated at the lower of cost (on a first-in, first-out basis) or net realizable value. We provide reserves for excess and obsolete inventories determined primarily based upon estimates of future demand for our products. Shipping and handling costs are classified as a component of cost of revenue in the consolidated statements of operations. Inventory Sale and Purchase Transactions with Contract Manufacturers Under certain circumstances, we sell raw materials to our contract manufacturers and subsequently repurchase finished goods from the contract manufacturers which contain such raw materials. Net sales of raw materials to the contract manufacturers are recorded on the consolidated balance sheets as contract manufacturers’ receivables and are eliminated from net revenue as we intend to repurchase the raw materials from the contract manufacturers in the form of finished goods. We have contractual arrangements with certain of our contract manufacturers that require us to purchase unused inventory that the contract manufacturer has purchased to fulfill our forecasted manufacturing demand. To the extent that inventory on-hand at one or more of these contract manufacturers exceeds our contractually reported forecasts, we record the amount we may be required to purchase as part of other current liabilities and inventories on the consolidated balance sheets. Property and Equipment Property and equipment are carried at cost. Depreciation is provided using the straight-line method over the assets’ estimated useful lives, generally ranging from three to five years. Depreciation and amortization of leasehold improvements are computed using the shorter of the remaining lease term or five years. Major renewals and betterments are capitalized, while replacements, maintenance and repairs, which do not improve or extend the estimated useful lives of the respective assets, are expensed as incurred. Business Combinations We allocate the fair value of the purchase consideration of a business acquisition to the tangible assets, liabilities, and intangible assets acquired, including in-process research and development (“IPR&D”), based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. IPR&D is initially capitalized at fair value as an intangible asset with an indefinite life and assessed for impairment thereafter. When an IPR&D project is completed, the IPR&D is reclassified as an amortizable purchased intangible asset and amortized over the asset’s estimated useful life. Acquisition-related expenses and related restructuring costs are recognized separately from the business combination and are expensed as incurred. Goodwill Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the acquired net tangible and intangible assets acquired. We evaluate goodwill for impairment on an annual basis in our fiscal fourth quarter or more frequently if we believe indicators of impairment exist that would more likely than not reduce the fair value of our single reporting unit below its carrying amount. We begin by assessing qualitative factors to determine whether it is more likely than not that the fair value of our single reporting unit is less than its carrying value. Based on that qualitative assessment, if we conclude that it is more likely than not that the fair value of our single reporting unit is less than its carrying value, we conduct a quantitative goodwill impairment test, which involves comparing the estimated fair value of our single reporting unit with its carrying value, including goodwill. We estimate the fair value of our single reporting unit using a combination of the income and market approach. If the carrying value of the reporting unit exceeds its estimated fair value, we recognize an impairment loss for the difference. During the fourth quarter of the fiscal year ended June 30, 2021, we performed a qualitative assessment of whether goodwill impairment existed and did not determine that it was more likely than not that the fair value of our single reporting unit was less than its carrying amount. Purchased Intangible Assets Included within "purchased intangible assets, net" at June 30, 2021 are customer lists, developed technology, tradenames, and other intangible assets acquired in connection with various business combinations. Such capitalized costs and intangible assets are being amortized over a period of one to five years. Long-Lived Assets and Intangible Assets We assess the impairment of long-lived assets and intangible assets whenever events or changes in circumstances indicate that the carrying amount of long-lived assets may not be recoverable. We estimate the future cash flows, undiscounted and without interest charges, expected to be generated by the assets from its use or eventual disposition. If the sum of the expected undiscounted future cash flows is less than the carrying amount of those assets, we recognize an impairment loss based on the excess of the carrying amount over the fair value of the assets. Income Taxes Income taxes are computed under the liability method. This method requires the recognition of deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of our assets and liabilities. The impact on deferred taxes of changes in tax rates and laws, if any, are applied to the years during which temporary differences are expected to be settled and are reflected in the consolidated financial statements in the period of enactment. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. Financial statement effects of a tax position are initially recognized when it is more likely than not, based on the technical merits, that the position will be sustained upon examination by a taxing authority. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that meets the more-likely-than-not threshold of being realized upon ultimate settlement with a taxing authority. We recognize potential accrued interest and penalties related to unrecognized tax benefits as income tax expense. Share-Based Compensation We account for share-based compensation by expensing the estimated grant date fair value of our shared-based awards ratably over the requisite service period. We recognize the impact of forfeitures on our share-based compensation expense as such forfeitures occur. Previously recognized expense is reversed for the portion of awards forfeited prior to vesting. Net Income (Loss) Per Share Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding during the fiscal year. Diluted net income (loss) per share is calculated by adjusting the weighted-average number of common shares outstanding, assuming any dilutive effects of outstanding share-based awards using the treasury stock method. Research and Development Costs Costs incurred in the research and development of new products and enhancements to existing products are expensed as incurred. Development costs of computer software to be sold, leased or otherwise marketed are subject to capitalization beginning when a product’s technological feasibility has been established and ending when a product is available for general release to customers. In most instances, we believe our current process for developing products is essentially completed concurrently with the establishment of technological feasibility and thus, software development costs have been expensed as incurred. Warranty 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. Restructuring Charges We recognize costs and related liabilities for restructuring activities when they are incurred. Our restructuring charges are primarily comprised of employee separation costs, asset impairments and contract exit costs. Employee separation costs include one-time termination benefits that are recognized as a liability at estimated fair value, at the time of communication to employees, unless future service is required, in which case the costs are recognized ratably over the future service period. Ongoing termination benefits are recognized as a liability at estimated fair value when the amount of such benefits are probable and reasonably estimable. Contract exit costs include contract termination fees and right-of-use asset impairments recognized on the date that we have vacated the premises or ceased use of the leased facilities. A liability for contract termination fees is recognized in the period in which we terminate the contract. Leases We determine if an arrangement is a lease, or contains a lease, at the inception of the arrangement and evaluate whether the lease is an operating lease or a finance lease at the commencement date. We recognize right-of-use (“ROU”) assets and lease liabilities for operating and finance leases with terms greater than 12 months. ROU assets represent our right to use an asset for the lease term, while lease liabilities represent our obligation to make lease payments. To the extent a lease includes a renewal option, we include such options in the calculation of the ROU asset and lease liability if it is reasonably assured that we will exercise the option. Operating and finance lease ROU assets and liabilities are recognized based on the present value of lease payments over the lease term at the lease commencement date. To determine the present value of lease payments, we use the implicit interest rate, if it is readily determinable. Many of our leases do not provide an implicit rate, and therefore we generally 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. Operating and finance lease ROU assets are recognized net of any lease prepayments and incentives. Operating lease expense is recognized on a straight-line basis over the lease term. Finance lease expense is recognized based on the effective-interest method over the lease term. For leases that we acquire in acquisition transactions, we generally elect not to recognize assets or liabilities at the acquisition date for leases that, at the acquisition date, have a remaining lease term of 12 months or less. This includes not recognizing an intangible asset if the terms of an operating lease are favorable relative to the market terms or a liability if the terms are unfavorable relative to the market terms. Refer to Note 9 Advertising Expenses Advertising expenses are recorded in the period incurred and totaled $ 231,000 185,000 Segment Information We have one operating and reportable business segment. Recent Accounting Pronouncements Current Expected Credit Losses In June 2016, the Financial Accounting Standards Board (“FASB”) issued a new standard requiring financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The standard eliminates the threshold for initial recognition in current U.S. GAAP and reflects an entity’s current estimate of all expected credit losses. The measurement of expected credit losses is based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets. The standard is effective beginning in the first quarter of our fiscal year 2024. The adoption of this guidance is not expected to have a material effect on our consolidated financial statements. |
Revenue
Revenue | 12 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 2. 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. Products 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 consolidated balance sheets. Services Revenues from our extended warranty and services are generally recognized ratably over the applicable service period. Revenues from sales of our software-as-a-service (“SaaS”) products are recognized ratably over the applicable service period as well. Revenues from professional engineering services are generally recognized as services are performed. We derive a portion of our revenues from engineering and related consulting service contracts with customers. These contracts generally include performance obligations in which control is transferred over time because the customer either simultaneously receives and consumes the benefits provided or our performance on the contract creates or enhances an asset that the customer controls. These contracts typically provide services on the following basis: · 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 an input method based on 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, REM 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 REM product line includes out-of-band management, console management, power management, and IP connected keyboard-video-mouse (commonly referred to as “IPKVM”) products that provide remote access to Information Technology (“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: Net revenue by product lines Years Ended June 30, 2021 2020 (In thousands) IoT $ 59,167 $ 49,911 REM 11,843 9,228 Other 467 739 $ 71,477 $ 59,878 Net revenue by geographic region Years Ended June 30, 2021 2020 (In thousands) Americas $ 38,638 $ 33,279 EMEA 17,186 15,588 APJ 15,653 11,011 $ 71,477 $ 59,878 The following table presents product revenues and service revenues as a percentage of our total net revenue: Schedule of percentage total net revenue Year Ended June 30, 2021 2020 Product revenues 91% 96% Service revenues 9% 4% 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 consolidated balance sheets. The following table presents the changes in our deferred revenue balance for the year ended June 30, 2021 (in thousands): Changes in deferred revenue Balance, July 1, 2020 $ 824 New performance obligations 778 Recognition of revenue as a result of satisfying performance obligations (511 ) Balance, June 30, 2021 $ 1,091 Less: non-current portion of deferred revenue (241 ) Current portion, June 30, 2021 $ 850 We expect to recognize substantially all of the non-current portion of deferred revenue over the next 2 to 4 years. |
Acquisition
Acquisition | 12 Months Ended |
Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisition | 3. Acquisition On April 28, 2021, we entered into a Securities Purchase Agreement (the “Purchase Agreement”) with Communications Systems, Inc., a Minnesota corporation (“CSI”), pursuant to which we agreed to purchase from CSI the Transition Networks (“TNI”) and Net2Edge businesses of CSI (the “Transaction”). The Transaction closed on August 2, 2021 (the “Closing Date”), with Lantronix acquiring all outstanding shares of the common stock of TNI and all of the outstanding ordinary shares of Transition Networks Europe Limited (such entity, together with TNI, the “TN Companies”) for an aggregate purchase price of up to approximately $ 32,028,000 25,028,000 7.0 The acquisition of the TN Companies provides Lantronix with complementary IoT connectivity products and capabilities, including switching, power over ethernet and media conversion and adapter products. We are currently evaluating the fair value of acquired assets and liabilities, including any identifiable intangible assets. We have not yet completed the initial accounting related to the Transaction as we are compiling and evaluating all of the necessary information. We expect to present a preliminary allocation of the fair value of the acquired assets and liabilities and pro forma disclosure in our Form 10-Q filing for the quarter ending September 30, 2021. |
Supplemental Financial Informat
Supplemental Financial Information | 12 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Information | 4. Supplemental Financial Information Inventories The following table presents details of our inventories: Schedule of Inventory June 30, 2021 2020 (In thousands) Finished goods $ 7,738 $ 7,522 Raw materials 7,321 6,259 Inventories, net $ 15,059 $ 13,781 Property and Equipment The following table presents details of property and equipment: Schedule of Property and Equipment June 30, 2021 2020 (In thousands) Computer, software and office equipment $ 4,338 $ 3,992 Furniture and fixtures 633 511 Production, development and warehouse equipment 4,707 4,777 Construction-in-progress 141 – Property and equipment, gross 9,819 9,280 Less accumulated depreciation (8,242 ) (7,693 ) Property and equipment, net $ 1,577 $ 1,587 Purchased Intangible Assets The following table presents details of purchased intangible assets: Schedule of purchased intangible assets June 30, 2021 June 30, 2020 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value (In thousands) Developed technology $ 3,841 $ (1,249 ) $ 2,592 $ 3,841 $ (497 ) $ 3,344 Customer relationship 9,030 (2,267 ) 6,763 9,030 (726 ) 8,304 Order backlog 840 (840 ) – 840 (384 ) 456 Non-compete agreements 400 (400 ) – 400 (184 ) 216 Trademark and trade name 375 (375 ) – 375 (246 ) 129 $ 14,486 $ (5,131 ) $ 9,355 $ 14,486 $ (2,037 ) $ 12,449 We do not currently have any purchased intangible assets with indefinite useful lives. As of June 30, 2021, future estimated amortization expense is as follows: Intangible Assets Amortization Expense Years Ending June 30, (In thousands) 2022 2,240 2023 2,240 2024 2,240 2025 1,785 2026 850 Total amortization expense $ 9,355 Goodwill Our goodwill balance at June 30, 2021 and 2020 was $ 15,810,000 Warranty Reserve The following table presents details of our warranty reserve: Schedule of Warranty Reserve Years Ended June 30, 2021 2020 (In thousands) Beginning balance $ 181 $ 116 Warranty reserve assumed from acquisition of Intrinsyc – 118 Charged to cost of revenues 226 181 Usage (210 ) (234 ) Ending balance $ 197 $ 181 Other Liabilities The following table presents details of our other liabilities: Schedule of Other Liabilities June 30, 2021 2020 (In thousands) Accrued variable consideration $ 1,347 $ 1,462 Customer deposits and refunds 1,133 628 Accrued raw materials purchases 176 272 Deferred revenue 850 658 Lease liability 1,174 1,273 Taxes payable 388 395 Warranty reserve 197 181 Accrued operating expenses 2,063 1,439 Total other current liabilities $ 7,328 $ 6,308 Non-current Lease liability $ 1,155 $ 1,796 Deferred revenue 241 166 Total other non-current liabilities $ 1,396 $ 1,962 Computation of Net Loss per Share The following table presents the computation of net loss per share: Schedule of Computation of Net Income (Loss) per Share Years Ended June 30, 2021 2020 (In thousands, except per share data) Numerator: Net loss $ (4,044 ) $ (10,738 ) Denominator: Weighted-average shares outstanding - basic and diluted 28,708 25,281 Net loss per share - basic and diluted $ (0.14 ) $ (0.42 ) 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. Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share Years Ended June 30, 2021 2020 (In thousands) Common stock equivalents 823 1,675 Severance and Related Charges The following table presents details of the liability we recorded related to restructuring, severance and related activities during the current fiscal year: Schedule of severance and related charges Year Ended June 30, 2021 (In thousands) Beginning balance $ 615 Charges 506 Payments (1,033 ) Ending balance $ 88 The ending balance is recorded in accrued payroll and related expenses on the accompanying consolidated balance sheet at June 30, 2021. Supplemental Cash Flow Information The following table presents non-cash investing and financing transactions excluded from the consolidated statements of cash flows: Schedule of Supplemental Cash Flow Information Years Ended June 30, 2021 2020 (In thousands) Share consideration for acquisition of Intrinsyc $ – $ 15,574 Accrued property and equipment paid for in the subsequent period $ 217 $ 149 |
Bank Loan Agreements
Bank Loan Agreements | 12 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Bank Loan Agreements | 5. 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 November 12, 2021 January 1, 2020 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 The following table summarizes our outstanding debt: Summary of outstanding debt June 30, 2021 2020 (In thousands) Outstanding borrowings on Term Loan Facility $ 3,750 $ 5,250 Less: Unamortized debt issuance costs (68 ) (96 ) Net Carrying amount of debt 3,682 5,154 Less: Current portion (1,472 ) (1,472 ) Non-current portion $ 2,210 $ 3,682 During the year ended June 30, 2021 we recognized $ 278,000 The Amended Agreement included a financial covenant that required 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 required that we did 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 were in compliance with all covenants under the Amended Agreement as of June 30, 2021. The following table presents certain information with respect to the Revolving Facility: Availability under the Line of Credit June 30, 2021 2020 (In thousands) Outstanding borrowings on the line of credit $ – $ – Available borrowing capacity on the line of credit $ 6,000 $ 5,602 Outstanding letters of credit $ 51 $ 51 Our outstanding letters of credit at June 30, 2021 and 2020 were used as security deposits. New Financing Arrangements In connection with the Transaction on the Closing Date (refer to Note 3 17,500,000 2,500,000 The Senior Credit Facilities mature on August 2, 2025 and the Mezzanine Credit Facility matures on February 2, 2026 Advances under the Senior Credit Facilities bear interest at LIBOR or the Prime Rate, at the option of Lantronix, plus a margin that ranges from 3.00% to 4.00% in the case of LIBOR and 1.50% to 2.50% in the case of the Prime Rate, depending on the total leverage of the Borrowers and their subsidiaries with a LIBOR floor of 0.50% and a Prime Rate floor of 3.25%. Advances under the Mezzanine Credit Facility bear interest at LIBOR or the Prime Rate, at the option of Lantronix, plus a margin of 9.00% with a floor of 1.00% in the case of LIBOR and a margin of 7.50% with a floor of 3.50% in the case of the Prime Rate. The Senior Credit Facilities and Mezzanine Credit Facility require Lantronix and its subsidiaries, on a consolidated basis, to comply with a maximum senior leverage ratio, a minimum fixed charge coverage ratio and a minimum liquidity test. In addition, the Senior Credit Facilities and the Mezzanine Credit Facility contain customary representations and warranties, affirmative and negative covenants, including covenants that limit or restrict Lantronix and its subsidiaries’ ability to incur liens, incur indebtedness, dispose of assets, make investments, make certain restricted payments, merge or consolidate and enter into certain speculative hedging arrangements. The Senior Credit Facilities and Mezzanine Credit Facility include a number of events of default, including, among other things, non-payment defaults, covenant defaults, cross-defaults to other materials indebtedness, bankruptcy and insolvency defaults and material judgment defaults. If any event of default occurs (subject, in certain instances, to specified grace periods), the principal, premium, if any, interest and any other monetary obligations on all the then outstanding amounts under the Senior Credit Facilities and Mezzanine Credit Facility may become due and payable immediately. |
Stockholders_ Equity
Stockholders’ Equity | 12 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Stockholders’ Equity | 6. Stockholders’ Equity Stock Incentive Plans We have stock incentive plans in effect under which non-qualified and incentive stock options to purchase shares of Lantronix common stock (“stock options”) have been granted to employees, non-employees and board members. In addition, we have previously granted restricted common stock awards (“non-vested shares”) to employees and board members under these plans. In November 2020, our stockholders voted to approve the 2020 Performance Incentive Plan (the “2020 Plan”), replacing our Amended and Restated 2010 Stock Incentive Plan (the “2010 Plan”), which expired in September 2020. At the 2010 Plan’s expiration date, approximately 1,097,000 2,995,000 The Compensation Committee of our board of directors determines eligibility, vesting schedules and exercise prices for stock options and shares granted under the plans. Stock options are generally granted with an exercise price equal to the market price of our common stock on the grant date. Stock options generally have a contractual term of seven to ten years. Share-based awards generally vest and become exercisable over a one to four-year service period. As of June 30, 2021, no stock appreciation rights or non-vested stock was outstanding. No income tax benefit was realized from activity in the share-based plans during the fiscal years ended June 30, 2021 and 2020. Stock Option Awards The fair value of each stock option grant is estimated on the grant date using the Black-Scholes-Merton option-pricing formula. Expected volatilities are based on the historical volatility of our stock price. The expected term of stock options granted is estimated using the simplified method, as permitted by guidance issued by the Securities and Exchange Commission. We use the simplified method because we believe we are unable to rely on our limited historical exercise data or alternative information as a reasonable basis upon which to estimate the expected term of such options. The risk-free interest rate assumption is based on the U.S. Treasury interest rates appropriate for the expected term of our stock options. The following weighted-average assumptions were used to estimate the fair value of all of our stock option grants: Schedule of Valuation Assumptions Years Ended June 30, 2021 2020 Expected term (in years) 7.0 4.3 Expected volatility 69% 65% Risk-free interest rate 0.59% 1.56% Dividend yield 0.00% 0.00% The following table presents a summary of activity for all of our stock options: Summary of stock option activity Weighted-Average Exercise Remaining Aggregate Number of Price Contractual Intrinsic Shares Per Share Term Value (In thousands) (In years) (In thousands) Balance of options outstanding at June 30, 2020 2,055 $ 2.72 Options granted 50 4.41 Options forfeited (38 ) 1.81 Options expired (18 ) 2.20 Options exercised (352 ) 1.79 Balance of options outstanding at June 30, 2021 1,697 $ 2.98 3.9 $ 3,699 Options exercisable at June 30, 2021 1,278 $ 2.71 3.5 $ 3,123 The following table presents a summary of grant date fair value and intrinsic value information for all of our stock options: Summary of option grant-date fair value and intrinsic value information Years Ended June 30, 2021 2020 (In thousands, Weighted-average grant date fair value per share $ 2.84 $ 1.90 Intrinsic value of options exercised $ 1,110 $ 1,850 Restricted Stock Units The fair value of our RSUs is based on the closing market price of our common stock on the grant date. The following table presents a summary of activity with respect to our RSUs during the fiscal year ended June 30, 2021: Summary of other-than-option activity Number of Shares Weighted-Average Grant Date Fair Value per Share (In thousands) Balance of RSUs outstanding at June 30, 2020 927 $ 3.93 Granted 400 4.69 Forfeited (45 ) 3.00 Vested (364 ) 3.77 Balance of RSUs outstanding at June 30, 2021 918 $ 4.14 Performance Stock Units Fiscal 2021 Grant In November 2020, we granted 415,000 Fiscal 2020 Grants In October 2019, we granted 975,000 The following table presents a summary of activity with respect to our PSUs during the fiscal year ended June 30, 2021: Summary of other-than-option activity Number of Shares (In thousands) Balance of PSUs outstanding at June 30, 2020 985 Granted 415 Forfeited (115 ) Vested (201 ) Balance of PSUs outstanding at June 30, 2021 1,084 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 ESPP currently operates with six month offering periods commencing on the first trading day on or after May 16 and November 16 of each year (an “Offering Period”). Common stock may be purchased under the ESPP at the end of each six-month Offering Period unless the participant withdraws or terminates employment earlier. Shares of the Company’s common stock may be purchased under the ESPP at a price not less than 85% of the lesser of the fair market value of our common stock on the first or last trading day of each Offering Period. The per share fair value of stock purchase rights granted under the ESPP was estimated using the following weighted-average assumptions: Schedule of Valuation Assumptions Years Ended June 30, 2021 2020 Expected term (in years) 0.5 0.5 Expected volatility 62% 61% Risk-free interest rate 0.08% 1.00% Dividend yield 0.00% 0.00% The following table presents a summary of activity under our ESPP during the fiscal year ended June 30, 2021: Summary of other-than-option activity Year Ended June 30, 2021 (In thousands, except per share data) Shares available for issuance at June 30, 2020 404 Shares issued (154 ) Shares available for issuance at June 30, 2021 250 Weighted-average purchase price per share $ 3.36 Intrinsic value of ESPP shares on purchase date $ 225 Share-Based Compensation Expense The following table presents a summary of share-based compensation expense included in each applicable functional line item on our consolidated statements of operations: Schedule of share-based compensation expense by functional line item Years Ended June 30, 2021 2020 (In thousands) Cost of revenues $ 281 $ 227 Selling, general and administrative 2,719 2,959 Research and development 584 453 Total share-based compensation expense $ 3,584 $ 3,639 The following table presents a summary of the remaining unrecognized share-based compensation expense related to our outstanding share-based awards as of June 30, 2021: Schedule of unrecognized share-based compensation expense Remaining Unrecognized Compensation Expense Remaining Weighted-Average Years to Recognize (In thousands) Stock options $ 864 1.7 RSUs 3,404 2.6 PSUs 958 1.5 Common stock purchase rights under ESPP 86 0.4 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 expense will increase to the extent that we grant additional share-based awards. |
Retirement Plan
Retirement Plan | 12 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
Retirement Plan | 7. Retirement Plan We have a retirement savings plan (the “Plan”) to which eligible employees may elect to make contributions through salary deferrals up to 100% of their base pay, subject to limitations. We made approximately $ 280,000 219,000 In addition, we may make discretionary profit-sharing contributions, subject to limitations. During the fiscal years ended June 30, 2021 and 2020, we made no such contributions to the Plan. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes The provision for income taxes consists of the following components: Schedule of Components of Income Tax Expense Years Ended June 30, 2021 2020 (In thousands) Current: Federal $ 8 $ (2 ) State 5 4 Foreign 182 142 Total Current taxes 195 144 Deferred: Federal – – State – – Foreign – – Provision for income taxes $ 195 $ 144 The following table presents U.S. and foreign income (loss) before income taxes: Schedule of Income before Income Tax, Domestic and Foreign Years Ended June 30, 2021 2020 (In thousands) United States $ (3,294 ) $ (7,048 ) Foreign (555 ) (3,546 ) Loss before income taxes $ (3,849 ) $ (10,594 ) The tax effects of temporary differences that give rise to deferred tax assets and liabilities are as follows: Schedule of Deferred Tax Assets and Liabilities Years Ended June 30, 2021 2020 (In thousands) Deferred tax assets: Tax losses and credits $ 20,281 $ 20,640 Reserves not currently deductible 1,537 1,205 Deferred compensation 1,579 986 Inventory capitalization 748 631 Lease liabilities 459 458 Depreciation and amortization 1,572 790 Other 285 130 Gross deferred tax assets 26,461 24,840 Valuation allowance (25,588 ) (24,056 ) Deferred tax assets, net 873 784 Deferred tax liabilities: State taxes (388 ) (343 ) Right-of-use assets (485 ) (441 ) Deferred tax liabilities (873 ) (784 ) Net deferred tax assets (liabilities) $ – $ – We have recorded a valuation allowance against our deferred tax assets, due to uncertainties surrounding the realization of the deferred tax assets. The following table presents a reconciliation of the provision for income taxes to taxes computed at the U.S. federal statutory rate: Schedule of Effective Income Tax Reconciliation Years Ended June 30, 2021 2020 (In thousands) Statutory federal provision (benefit) for income taxes $ (809 ) $ (2,224 ) Increase (decrease) resulting from: Stock options (320 ) (121 ) Other permanent differences (9 ) 10 Change in valuation allowance 1,285 1,467 Foreign tax credit (84 ) (67 ) Global intangible low-tax income inclusion 82 86 Controlled foreign corporation inclusion – 4 Foreign tax rate variances 299 886 Acquisition costs 53 – Other (302 ) 103 Provision for income taxes $ 195 $ 144 Due to the “change of ownership” provision of the Tax Reform Act of 1986, utilization of our net operating loss (“NOL”) carryforwards and tax credit carryforwards may be subject to an annual limitation against taxable income in future periods. Due to the annual limitation, a portion of these carryforwards may expire before ultimately becoming available to reduce future income tax liabilities. The following table presents our NOLs: Summary of Operating Income (Loss) Carryforwards June 30, 2021 (In thousands) Federal $ 91,974 State $ 11,038 For federal income tax purposes, our NOL carryovers generated for tax years beginning before July 1, 2018 began to expire in the fiscal year ended June 30, 2021. Of our federal NOLs as of June 30, 2021 in the table above, approximately $ 51,862,000 June 30, 2023 We continue to assert that our foreign earnings are indefinitely reinvested in our overseas operations and as such, deferred income taxes were not provided on undistributed earnings of certain foreign subsidiaries. The 2017 Act created a requirement that certain income earned by foreign subsidiaries, known as global intangible low-tax income (“GILTI”), must be included in the gross income of their U.S. shareholder. The FASB allows an accounting policy election of either recognizing deferred taxes for temporary differences expected to reverse as GILTI in future years or recognizing such taxes as a current-period expense when incurred. During the fiscal years ended June 30, 2021 and 2021, we elected to treat the tax effect of GILTI as a current-period expense when incurred. Unrecognized Tax Benefits The following table summarizes our liability for uncertain tax positions for the fiscal year ended June 30, 2021: Summary of uncertain tax position Year Ended June 30, 2021 (In thousands) Balance as of June 30, 2020 $ 6,600 Change in balances related to uncertain tax positions – Balance as of June 30, 2021 $ 6,600 At June 30, 2021, we had $6,600,000 of gross unrecognized tax benefits which was recorded as a reduction to deferred tax assets, and a corresponding reduction in our valuation allowance of $ 6,600,000 265,000 At June 30, 2021, our fiscal years ended June 30, 2018 through 2021 remain open to examination by the federal taxing jurisdiction and our fiscal years ended June 30, 2017 through 2021 remain open to examination by the state taxing jurisdictions. However, we have NOLs beginning in the fiscal year ended June 30, 2001 which would cause the statute of limitations to remain open for the year in which the NOL was incurred. Our fiscal years ended June 30, 2014 through 2021 remain open to examination by foreign taxing authorities. We currently do not anticipate that the amount of unrecognized tax benefits as of June 30, 2021 will significantly increase or decrease within the next 12 months. |
Leases
Leases | 12 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | 9. Leases Our leases include office buildings for various facilities worldwide which are all classified as operating leases. We also have financing leases related to some office equipment in the United States. Components of lease expense and supplemental cash flow information: Components of lease expense Year Ended 2021 Components of lease expense (In thousands) Operating lease cost $ 1,805 Financing lease cost 9 Supplemental cash flow information Cash paid for amounts included in the measurement of operating lease liabilities $ 1,344 Cash paid for amounts included in the measurement of financing lease liabilities $ 9 Right-of-use assets obtained in exchange for lease obligation $ 613 The weighted-average remaining lease term is 1.3 years. The weighted-average discount rate is 6.11 percent. Maturities of lease liabilities as of June 30, 2021 were as follows: Maturities of lease liabilities Years ending June 30, Operating Financing (In thousands) 2022 $ 1,278 $ 9 2023 530 9 2024 402 3 2025 198 – 2026 107 – Total remaining lease payments 2,515 21 less: imputed interest (207 ) – Lease liability $ 2,308 $ 21 Reported as: Current liabilities $ 1,165 $ 9 Non-current liabilities 1,143 12 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies From time to time, we are subject to legal proceedings and claims in the ordinary course of business. We are currently not aware of any such legal proceedings or claims that we believe will have, individually or in the aggregate, a material adverse effect on our business, prospects, financial position, operating results or cash flows. |
Significant Geographic, Custome
Significant Geographic, Customer and Supplier Information | 12 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Significant Geographic, Customer and Supplier Information | 11. Significant Geographic, Customer and Supplier Information The following table presents our sales within geographic regions as a percentage of net revenue, which is based on the “bill-to” location of our customers: Schedule of Revenue by Geographic Area Years Ended June 30, 2021 2020 Americas 54% 56% Europe, Middle East, and Africa 24% 26% Asia Pacific Japan 22% 18% Total 100% 100% The following table presents sales to significant countries as a percentage of net revenue, which is based on the “bill-to” location of our customers: Years Ended June 30, 2021 2020 U.S. and Canada 53% 48% Germany 10% 18% Taiwan 6% – Japan 6% 5% Hong Kong – 6% * Less than 5% Long-lived assets, which consists of property and equipment, net, lease right-of-use assets, purchased intangible assets, net, and goodwill by geographic area are as follows: Long-lived Assets by Geographic Areas June 30, 2021 2020 (in thousands) U.S. $ 15,737 $ 16,891 Canada 12,619 15,973 Rest of world 817 327 $ 29,173 $ 33,191 Customers The following table presents sales to our significant customers as a percentage of net revenue: Schedule of Revenue by Major Customers Years Ended June 30, 2021 2020 Top five customers (1) 37% 36% Ingram Micro 15% 16% (1) Includes Ingram Micro the fiscal years ended June 30, 2021 and 2020. No other customer represented more than 10% of our annual net revenue during these fiscal years. Related Party Transactions We had no net revenue from related parties for the fiscal years ended June 30, 2021 and 2020. Suppliers We do not own or operate a manufacturing facility. All of our products are manufactured by third-party contract manufacturers and foundries primarily located in Thailand, Taiwan and China. We have several single-sourced supplier relationships, either because alternative sources are not available or because the relationship is advantageous to us. If these suppliers are unable to provide a timely and reliable supply of components, we could experience manufacturing delays that could adversely affect our consolidated results of operations. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2021 | |
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 software as a service (“SaaS”), engineering services, and hardware for Edge Computing, the Internet of Things (“IoT”), and Remote Environment Management (“REM”). Lantronix enables its customers to provide reliable and secure solutions while accelerating their time to market. Lantronix’s products and services dramatically simplify operations through the creation, development, deployment and management of customer projects at scale while providing quality, reliability and security. We were incorporated in California in 1989 and re-incorporated in Delaware in 2000. |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of Lantronix and our wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The industry in which we operate is characterized by rapid technological change. As a result, estimates made in preparing the consolidated financial statements include the allowance for doubtful accounts, revenue recognition, business combinations, inventory valuation, goodwill valuation, deferred income tax asset valuation allowances, share-based compensation, restructuring charges and warranty reserves. To the extent there are material differences between our estimates and actual results, future results of operations will be affected. |
Impact of COVID-19 | Impact of COVID-19 The spread of the COVID-19 virus has caused an economic downturn on a global scale, as well as significant volatility in the financial markets. The extent to which the COVID-19 pandemic impacts our business, operations and financial results continues to 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 2020, and many continue to primarily work remotely as of 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 an 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 to the current fiscal year presentation. |
Revenue Recognition | Revenue Recognition Refer to Note 2 |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are stated at the amount we expect to collect, which is net of an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. Our evaluation of the collectability of customer accounts receivable is based on various factors, including the length of time the receivables are past due, our history of bad debts and general industry conditions. Accounts that are deemed uncollectible are written off against the allowance for doubtful accounts. |
Concentration of Credit Risk | Concentration of Credit Risk Our accounts receivable are primarily derived from revenue earned from customers located throughout North America, Europe and Asia. We perform periodic credit evaluations of our customers’ financial condition and maintain allowances for potential credit losses. Credit losses have historically been within our expectations. We generally do not require collateral or other security from our customers. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Our financial instruments consist primarily of cash and cash equivalents, accounts receivable, contract manufacturers’ receivable, accounts payable, and accrued liabilities. The fair value of a financial instrument is the amount that would be received in an asset sale or paid to transfer a liability in an orderly transaction between unaffiliated market participants. Assets and liabilities measured at fair value are categorized based on whether or not the inputs are observable in the market and the degree to which the inputs are observable. The categorization of financial instruments within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is prioritized into three levels (with Level 3 being the lowest) defined as follows: Level 1: Level 2: Level 3: The hierarchy noted above requires us to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. We do not have any assets or liabilities that were measured at fair value on a recurring basis, and during the fiscal years ended June 30, 2021 and 2020 we did not have any assets or liabilities that were measured at fair value on a non-recurring basis. We believe all of our financial instruments’ recorded values approximate their current fair values because of the nature and short duration of these instruments. |
Foreign Currency Remeasurement | Foreign Currency Remeasurement The functional currency for all our foreign subsidiaries is currently the U.S. dollar. Non-monetary and monetary foreign currency assets and liabilities are valued in U.S. dollars at historical and end-of-period exchange rates, respectively. Exchange gains and losses from foreign currency transactions and remeasurements are recognized in the consolidated statements of operations. Translation adjustments for foreign subsidiaries whose functional currencies were previously their respective local currencies are suspended in accumulated other comprehensive income. |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income Accumulated other comprehensive income is composed of accumulated translation adjustments as of June 30, 2021 and 2020. We did not have any other comprehensive income or losses during the fiscal years ended June 30, 2021 or 2020. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash and short-term investments, with original maturities of 90 days or less. |
Inventories | Inventories Inventories are stated at the lower of cost (on a first-in, first-out basis) or net realizable value. We provide reserves for excess and obsolete inventories determined primarily based upon estimates of future demand for our products. Shipping and handling costs are classified as a component of cost of revenue in the consolidated statements of operations. |
Inventory Sale and Purchase Transactions with Contract Manufacturers | Inventory Sale and Purchase Transactions with Contract Manufacturers Under certain circumstances, we sell raw materials to our contract manufacturers and subsequently repurchase finished goods from the contract manufacturers which contain such raw materials. Net sales of raw materials to the contract manufacturers are recorded on the consolidated balance sheets as contract manufacturers’ receivables and are eliminated from net revenue as we intend to repurchase the raw materials from the contract manufacturers in the form of finished goods. We have contractual arrangements with certain of our contract manufacturers that require us to purchase unused inventory that the contract manufacturer has purchased to fulfill our forecasted manufacturing demand. To the extent that inventory on-hand at one or more of these contract manufacturers exceeds our contractually reported forecasts, we record the amount we may be required to purchase as part of other current liabilities and inventories on the consolidated balance sheets. |
Property and Equipment | Property and Equipment Property and equipment are carried at cost. Depreciation is provided using the straight-line method over the assets’ estimated useful lives, generally ranging from three to five years. Depreciation and amortization of leasehold improvements are computed using the shorter of the remaining lease term or five years. Major renewals and betterments are capitalized, while replacements, maintenance and repairs, which do not improve or extend the estimated useful lives of the respective assets, are expensed as incurred. |
Business Combinations | Business Combinations We allocate the fair value of the purchase consideration of a business acquisition to the tangible assets, liabilities, and intangible assets acquired, including in-process research and development (“IPR&D”), based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. IPR&D is initially capitalized at fair value as an intangible asset with an indefinite life and assessed for impairment thereafter. When an IPR&D project is completed, the IPR&D is reclassified as an amortizable purchased intangible asset and amortized over the asset’s estimated useful life. Acquisition-related expenses and related restructuring costs are recognized separately from the business combination and are expensed as incurred. |
Goodwill | Goodwill Goodwill is recorded as the difference, if any, between the aggregate consideration paid for an acquisition and the fair value of the acquired net tangible and intangible assets acquired. We evaluate goodwill for impairment on an annual basis in our fiscal fourth quarter or more frequently if we believe indicators of impairment exist that would more likely than not reduce the fair value of our single reporting unit below its carrying amount. We begin by assessing qualitative factors to determine whether it is more likely than not that the fair value of our single reporting unit is less than its carrying value. Based on that qualitative assessment, if we conclude that it is more likely than not that the fair value of our single reporting unit is less than its carrying value, we conduct a quantitative goodwill impairment test, which involves comparing the estimated fair value of our single reporting unit with its carrying value, including goodwill. We estimate the fair value of our single reporting unit using a combination of the income and market approach. If the carrying value of the reporting unit exceeds its estimated fair value, we recognize an impairment loss for the difference. During the fourth quarter of the fiscal year ended June 30, 2021, we performed a qualitative assessment of whether goodwill impairment existed and did not determine that it was more likely than not that the fair value of our single reporting unit was less than its carrying amount. |
Purchased Intangible Assets | Purchased Intangible Assets Included within "purchased intangible assets, net" at June 30, 2021 are customer lists, developed technology, tradenames, and other intangible assets acquired in connection with various business combinations. Such capitalized costs and intangible assets are being amortized over a period of one to five years. |
Long-Lived Assets and Intangible Assets | Long-Lived Assets and Intangible Assets We assess the impairment of long-lived assets and intangible assets whenever events or changes in circumstances indicate that the carrying amount of long-lived assets may not be recoverable. We estimate the future cash flows, undiscounted and without interest charges, expected to be generated by the assets from its use or eventual disposition. If the sum of the expected undiscounted future cash flows is less than the carrying amount of those assets, we recognize an impairment loss based on the excess of the carrying amount over the fair value of the assets. |
Income Taxes | Income Taxes Income taxes are computed under the liability method. This method requires the recognition of deferred tax assets and liabilities for temporary differences between the financial reporting basis and the tax basis of our assets and liabilities. The impact on deferred taxes of changes in tax rates and laws, if any, are applied to the years during which temporary differences are expected to be settled and are reflected in the consolidated financial statements in the period of enactment. A valuation allowance is recorded when it is more likely than not that some of the deferred tax assets will not be realized. Financial statement effects of a tax position are initially recognized when it is more likely than not, based on the technical merits, that the position will be sustained upon examination by a taxing authority. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that meets the more-likely-than-not threshold of being realized upon ultimate settlement with a taxing authority. We recognize potential accrued interest and penalties related to unrecognized tax benefits as income tax expense. |
Share-Based Compensation | Share-Based Compensation We account for share-based compensation by expensing the estimated grant date fair value of our shared-based awards ratably over the requisite service period. We recognize the impact of forfeitures on our share-based compensation expense as such forfeitures occur. Previously recognized expense is reversed for the portion of awards forfeited prior to vesting. |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding during the fiscal year. Diluted net income (loss) per share is calculated by adjusting the weighted-average number of common shares outstanding, assuming any dilutive effects of outstanding share-based awards using the treasury stock method. |
Research and Development Costs | Research and Development Costs Costs incurred in the research and development of new products and enhancements to existing products are expensed as incurred. Development costs of computer software to be sold, leased or otherwise marketed are subject to capitalization beginning when a product’s technological feasibility has been established and ending when a product is available for general release to customers. In most instances, we believe our current process for developing products is essentially completed concurrently with the establishment of technological feasibility and thus, software development costs have been expensed as incurred. |
Warranty | Warranty 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. |
Restructuring Charges | Restructuring Charges We recognize costs and related liabilities for restructuring activities when they are incurred. Our restructuring charges are primarily comprised of employee separation costs, asset impairments and contract exit costs. Employee separation costs include one-time termination benefits that are recognized as a liability at estimated fair value, at the time of communication to employees, unless future service is required, in which case the costs are recognized ratably over the future service period. Ongoing termination benefits are recognized as a liability at estimated fair value when the amount of such benefits are probable and reasonably estimable. Contract exit costs include contract termination fees and right-of-use asset impairments recognized on the date that we have vacated the premises or ceased use of the leased facilities. A liability for contract termination fees is recognized in the period in which we terminate the contract. |
Leases | Leases We determine if an arrangement is a lease, or contains a lease, at the inception of the arrangement and evaluate whether the lease is an operating lease or a finance lease at the commencement date. We recognize right-of-use (“ROU”) assets and lease liabilities for operating and finance leases with terms greater than 12 months. ROU assets represent our right to use an asset for the lease term, while lease liabilities represent our obligation to make lease payments. To the extent a lease includes a renewal option, we include such options in the calculation of the ROU asset and lease liability if it is reasonably assured that we will exercise the option. Operating and finance lease ROU assets and liabilities are recognized based on the present value of lease payments over the lease term at the lease commencement date. To determine the present value of lease payments, we use the implicit interest rate, if it is readily determinable. Many of our leases do not provide an implicit rate, and therefore we generally 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. Operating and finance lease ROU assets are recognized net of any lease prepayments and incentives. Operating lease expense is recognized on a straight-line basis over the lease term. Finance lease expense is recognized based on the effective-interest method over the lease term. For leases that we acquire in acquisition transactions, we generally elect not to recognize assets or liabilities at the acquisition date for leases that, at the acquisition date, have a remaining lease term of 12 months or less. This includes not recognizing an intangible asset if the terms of an operating lease are favorable relative to the market terms or a liability if the terms are unfavorable relative to the market terms. Refer to Note 9 |
Advertising Expenses | Advertising Expenses Advertising expenses are recorded in the period incurred and totaled $ 231,000 185,000 |
Segment Information | Segment Information We have one operating and reportable business segment. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Current Expected Credit Losses In June 2016, the Financial Accounting Standards Board (“FASB”) issued a new standard requiring financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The standard eliminates the threshold for initial recognition in current U.S. GAAP and reflects an entity’s current estimate of all expected credit losses. The measurement of expected credit losses is based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets. The standard is effective beginning in the first quarter of our fiscal year 2024. The adoption of this guidance is not expected to have a material effect on our consolidated financial statements. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Net revenue by product lines | Net revenue by product lines Years Ended June 30, 2021 2020 (In thousands) IoT $ 59,167 $ 49,911 REM 11,843 9,228 Other 467 739 $ 71,477 $ 59,878 |
Net revenue by geographic region | Net revenue by geographic region Years Ended June 30, 2021 2020 (In thousands) Americas $ 38,638 $ 33,279 EMEA 17,186 15,588 APJ 15,653 11,011 $ 71,477 $ 59,878 |
Schedule of percentage total net revenue | Schedule of percentage total net revenue Year Ended June 30, 2021 2020 Product revenues 91% 96% Service revenues 9% 4% |
Changes in deferred revenue | Changes in deferred revenue Balance, July 1, 2020 $ 824 New performance obligations 778 Recognition of revenue as a result of satisfying performance obligations (511 ) Balance, June 30, 2021 $ 1,091 Less: non-current portion of deferred revenue (241 ) Current portion, June 30, 2021 $ 850 |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Inventory | Schedule of Inventory June 30, 2021 2020 (In thousands) Finished goods $ 7,738 $ 7,522 Raw materials 7,321 6,259 Inventories, net $ 15,059 $ 13,781 |
Schedule of Property and Equipment | Schedule of Property and Equipment June 30, 2021 2020 (In thousands) Computer, software and office equipment $ 4,338 $ 3,992 Furniture and fixtures 633 511 Production, development and warehouse equipment 4,707 4,777 Construction-in-progress 141 – Property and equipment, gross 9,819 9,280 Less accumulated depreciation (8,242 ) (7,693 ) Property and equipment, net $ 1,577 $ 1,587 |
Schedule of purchased intangible assets | Schedule of purchased intangible assets June 30, 2021 June 30, 2020 Gross Carrying Amount Accumulated Amortization Net Book Value Gross Carrying Amount Accumulated Amortization Net Book Value (In thousands) Developed technology $ 3,841 $ (1,249 ) $ 2,592 $ 3,841 $ (497 ) $ 3,344 Customer relationship 9,030 (2,267 ) 6,763 9,030 (726 ) 8,304 Order backlog 840 (840 ) – 840 (384 ) 456 Non-compete agreements 400 (400 ) – 400 (184 ) 216 Trademark and trade name 375 (375 ) – 375 (246 ) 129 $ 14,486 $ (5,131 ) $ 9,355 $ 14,486 $ (2,037 ) $ 12,449 |
Intangible Assets Amortization Expense | Intangible Assets Amortization Expense Years Ending June 30, (In thousands) 2022 2,240 2023 2,240 2024 2,240 2025 1,785 2026 850 Total amortization expense $ 9,355 |
Schedule of Warranty Reserve | Schedule of Warranty Reserve Years Ended June 30, 2021 2020 (In thousands) Beginning balance $ 181 $ 116 Warranty reserve assumed from acquisition of Intrinsyc – 118 Charged to cost of revenues 226 181 Usage (210 ) (234 ) Ending balance $ 197 $ 181 |
Schedule of Other Liabilities | Schedule of Other Liabilities June 30, 2021 2020 (In thousands) Accrued variable consideration $ 1,347 $ 1,462 Customer deposits and refunds 1,133 628 Accrued raw materials purchases 176 272 Deferred revenue 850 658 Lease liability 1,174 1,273 Taxes payable 388 395 Warranty reserve 197 181 Accrued operating expenses 2,063 1,439 Total other current liabilities $ 7,328 $ 6,308 Non-current Lease liability $ 1,155 $ 1,796 Deferred revenue 241 166 Total other non-current liabilities $ 1,396 $ 1,962 |
Schedule of Computation of Net Income (Loss) per Share | Schedule of Computation of Net Income (Loss) per Share Years Ended June 30, 2021 2020 (In thousands, except per share data) Numerator: Net loss $ (4,044 ) $ (10,738 ) Denominator: Weighted-average shares outstanding - basic and diluted 28,708 25,281 Net loss per share - basic and diluted $ (0.14 ) $ (0.42 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share Years Ended June 30, 2021 2020 (In thousands) Common stock equivalents 823 1,675 |
Schedule of severance and related charges | Schedule of severance and related charges Year Ended June 30, 2021 (In thousands) Beginning balance $ 615 Charges 506 Payments (1,033 ) Ending balance $ 88 |
Schedule of Supplemental Cash Flow Information | Schedule of Supplemental Cash Flow Information Years Ended June 30, 2021 2020 (In thousands) Share consideration for acquisition of Intrinsyc $ – $ 15,574 Accrued property and equipment paid for in the subsequent period $ 217 $ 149 |
Bank Loan Agreements (Tables)
Bank Loan Agreements (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Summary of outstanding debt | Summary of outstanding debt June 30, 2021 2020 (In thousands) Outstanding borrowings on Term Loan Facility $ 3,750 $ 5,250 Less: Unamortized debt issuance costs (68 ) (96 ) Net Carrying amount of debt 3,682 5,154 Less: Current portion (1,472 ) (1,472 ) Non-current portion $ 2,210 $ 3,682 |
Availability under the Line of Credit | Availability under the Line of Credit June 30, 2021 2020 (In thousands) Outstanding borrowings on the line of credit $ – $ – Available borrowing capacity on the line of credit $ 6,000 $ 5,602 Outstanding letters of credit $ 51 $ 51 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of stock option activity | Summary of stock option activity Weighted-Average Exercise Remaining Aggregate Number of Price Contractual Intrinsic Shares Per Share Term Value (In thousands) (In years) (In thousands) Balance of options outstanding at June 30, 2020 2,055 $ 2.72 Options granted 50 4.41 Options forfeited (38 ) 1.81 Options expired (18 ) 2.20 Options exercised (352 ) 1.79 Balance of options outstanding at June 30, 2021 1,697 $ 2.98 3.9 $ 3,699 Options exercisable at June 30, 2021 1,278 $ 2.71 3.5 $ 3,123 |
Summary of option grant-date fair value and intrinsic value information | Summary of option grant-date fair value and intrinsic value information Years Ended June 30, 2021 2020 (In thousands, Weighted-average grant date fair value per share $ 2.84 $ 1.90 Intrinsic value of options exercised $ 1,110 $ 1,850 |
Summary of other-than-option activity | Summary of other-than-option activity Year Ended June 30, 2021 (In thousands, except per share data) Shares available for issuance at June 30, 2020 404 Shares issued (154 ) Shares available for issuance at June 30, 2021 250 Weighted-average purchase price per share $ 3.36 Intrinsic value of ESPP shares on purchase date $ 225 |
Schedule of share-based compensation expense by functional line item | Schedule of share-based compensation expense by functional line item Years Ended June 30, 2021 2020 (In thousands) Cost of revenues $ 281 $ 227 Selling, general and administrative 2,719 2,959 Research and development 584 453 Total share-based compensation expense $ 3,584 $ 3,639 |
Schedule of unrecognized share-based compensation expense | Schedule of unrecognized share-based compensation expense Remaining Unrecognized Compensation Expense Remaining Weighted-Average Years to Recognize (In thousands) Stock options $ 864 1.7 RSUs 3,404 2.6 PSUs 958 1.5 Common stock purchase rights under ESPP 86 0.4 |
Options Held [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Valuation Assumptions | Schedule of Valuation Assumptions Years Ended June 30, 2021 2020 Expected term (in years) 7.0 4.3 Expected volatility 69% 65% Risk-free interest rate 0.59% 1.56% Dividend yield 0.00% 0.00% |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of other-than-option activity | Summary of other-than-option activity Number of Shares Weighted-Average Grant Date Fair Value per Share (In thousands) Balance of RSUs outstanding at June 30, 2020 927 $ 3.93 Granted 400 4.69 Forfeited (45 ) 3.00 Vested (364 ) 3.77 Balance of RSUs outstanding at June 30, 2021 918 $ 4.14 |
Performance Stock Units P S U [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of other-than-option activity | Summary of other-than-option activity Number of Shares (In thousands) Balance of PSUs outstanding at June 30, 2020 985 Granted 415 Forfeited (115 ) Vested (201 ) Balance of PSUs outstanding at June 30, 2021 1,084 |
Employee Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Valuation Assumptions | Schedule of Valuation Assumptions Years Ended June 30, 2021 2020 Expected term (in years) 0.5 0.5 Expected volatility 62% 61% Risk-free interest rate 0.08% 1.00% Dividend yield 0.00% 0.00% |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense | Schedule of Components of Income Tax Expense Years Ended June 30, 2021 2020 (In thousands) Current: Federal $ 8 $ (2 ) State 5 4 Foreign 182 142 Total Current taxes 195 144 Deferred: Federal – – State – – Foreign – – Provision for income taxes $ 195 $ 144 |
Schedule of Income before Income Tax, Domestic and Foreign | Schedule of Income before Income Tax, Domestic and Foreign Years Ended June 30, 2021 2020 (In thousands) United States $ (3,294 ) $ (7,048 ) Foreign (555 ) (3,546 ) Loss before income taxes $ (3,849 ) $ (10,594 ) |
Schedule of Deferred Tax Assets and Liabilities | Schedule of Deferred Tax Assets and Liabilities Years Ended June 30, 2021 2020 (In thousands) Deferred tax assets: Tax losses and credits $ 20,281 $ 20,640 Reserves not currently deductible 1,537 1,205 Deferred compensation 1,579 986 Inventory capitalization 748 631 Lease liabilities 459 458 Depreciation and amortization 1,572 790 Other 285 130 Gross deferred tax assets 26,461 24,840 Valuation allowance (25,588 ) (24,056 ) Deferred tax assets, net 873 784 Deferred tax liabilities: State taxes (388 ) (343 ) Right-of-use assets (485 ) (441 ) Deferred tax liabilities (873 ) (784 ) Net deferred tax assets (liabilities) $ – $ – |
Schedule of Effective Income Tax Reconciliation | Schedule of Effective Income Tax Reconciliation Years Ended June 30, 2021 2020 (In thousands) Statutory federal provision (benefit) for income taxes $ (809 ) $ (2,224 ) Increase (decrease) resulting from: Stock options (320 ) (121 ) Other permanent differences (9 ) 10 Change in valuation allowance 1,285 1,467 Foreign tax credit (84 ) (67 ) Global intangible low-tax income inclusion 82 86 Controlled foreign corporation inclusion – 4 Foreign tax rate variances 299 886 Acquisition costs 53 – Other (302 ) 103 Provision for income taxes $ 195 $ 144 |
Summary of Operating Income (Loss) Carryforwards | Summary of Operating Income (Loss) Carryforwards June 30, 2021 (In thousands) Federal $ 91,974 State $ 11,038 |
Summary of uncertain tax position | Summary of uncertain tax position Year Ended June 30, 2021 (In thousands) Balance as of June 30, 2020 $ 6,600 Change in balances related to uncertain tax positions – Balance as of June 30, 2021 $ 6,600 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Components of lease expense | Components of lease expense Year Ended 2021 Components of lease expense (In thousands) Operating lease cost $ 1,805 Financing lease cost 9 Supplemental cash flow information Cash paid for amounts included in the measurement of operating lease liabilities $ 1,344 Cash paid for amounts included in the measurement of financing lease liabilities $ 9 Right-of-use assets obtained in exchange for lease obligation $ 613 |
Maturities of lease liabilities | Maturities of lease liabilities Years ending June 30, Operating Financing (In thousands) 2022 $ 1,278 $ 9 2023 530 9 2024 402 3 2025 198 – 2026 107 – Total remaining lease payments 2,515 21 less: imputed interest (207 ) – Lease liability $ 2,308 $ 21 Reported as: Current liabilities $ 1,165 $ 9 Non-current liabilities 1,143 12 |
Significant Geographic, Custo_2
Significant Geographic, Customer and Supplier Information (Tables) | 12 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographic Area | Schedule of Revenue by Geographic Area Years Ended June 30, 2021 2020 Americas 54% 56% Europe, Middle East, and Africa 24% 26% Asia Pacific Japan 22% 18% Total 100% 100% The following table presents sales to significant countries as a percentage of net revenue, which is based on the “bill-to” location of our customers: Years Ended June 30, 2021 2020 U.S. and Canada 53% 48% Germany 10% 18% Taiwan 6% – Japan 6% 5% Hong Kong – 6% * Less than 5% |
Long-lived Assets by Geographic Areas | Long-lived Assets by Geographic Areas June 30, 2021 2020 (in thousands) U.S. $ 15,737 $ 16,891 Canada 12,619 15,973 Rest of world 817 327 $ 29,173 $ 33,191 |
Schedule of Revenue by Major Customers | Schedule of Revenue by Major Customers Years Ended June 30, 2021 2020 Top five customers (1) 37% 36% Ingram Micro 15% 16% (1) Includes Ingram Micro the fiscal years ended June 30, 2021 and 2020. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Accounting Policies [Abstract] | ||
Advertising expense | $ 231 | $ 185 |
Revenue (Details - Revenues by
Revenue (Details - Revenues by product line) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 71,477 | $ 59,878 |
Iot [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 59,167 | 49,911 |
R E M [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 11,843 | 9,228 |
Other Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 467 | $ 739 |
Revenue (Details - Revenue by G
Revenue (Details - Revenue by Geography) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 71,477 | $ 59,878 |
Americas [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 38,638 | 33,279 |
EMEA [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 17,186 | 15,588 |
A P J [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 15,653 | $ 11,011 |
Revenue (Details - Percentage o
Revenue (Details - Percentage of total net revenue) - Revenue Benchmark [Member] - Customer Concentration Risk [Member] | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Product [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 91.00% | 96.00% |
Service [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Concentration Risk, Percentage | 9.00% | 4.00% |
Revenue (Details - Changes in D
Revenue (Details - Changes in Deferred Revenue) $ in Thousands | 12 Months Ended |
Jun. 30, 2021USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue, beginning balance | $ 824 |
New performance obligations | 778 |
Recognition of revenue as a result of satisying performance obligations | (511) |
Deferred revenue, ending balance | 1,091 |
Less: non-current portion of deferred revenue | (241) |
Current portion ending balance | $ 850 |
Acquisition (Details Narrative)
Acquisition (Details Narrative) - TN Companies [Member] | 10 Months Ended |
Apr. 28, 2021USD ($) | |
Business Acquisition [Line Items] | |
Business Combination, Consideration Transferred | $ 32,028,000 |
Cash paid for acquisition | 25,028,000 |
Earnout payments | $ 7,000,000 |
Supplemental Financial Inform_3
Supplemental Financial Information (Details - Inventories) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Finished goods | $ 7,738 | $ 7,522 |
Raw materials | 7,321 | 6,259 |
Inventories, net | $ 15,059 | $ 13,781 |
Supplemental Financial Inform_4
Supplemental Financial Information (Details - Property and Equipment) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 9,819 | $ 9,280 |
Less accumulated depreciation | (8,242) | (7,693) |
Property and equipment, net | 1,577 | 1,587 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,338 | 3,992 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 633 | 511 |
Support Equipment and Facilities [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,707 | 4,777 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 141 | $ 0 |
Supplemental Financial Inform_5
Supplemental Financial Information (Details - Purchased intangible assets) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 14,486 | $ 14,486 |
Accumulated Amortization | (5,131) | (2,037) |
Net Book Value | 9,355 | 12,449 |
Developed Technology Rights [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,841 | 3,841 |
Accumulated Amortization | (1,249) | (497) |
Net Book Value | 2,592 | 3,344 |
Customer Contracts [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 9,030 | 9,030 |
Accumulated Amortization | (2,267) | (726) |
Net Book Value | 6,763 | 8,304 |
Order or Production Backlog [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 840 | 840 |
Accumulated Amortization | (840) | (384) |
Net Book Value | 0 | 456 |
Noncompete Agreements [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 400 | 400 |
Accumulated Amortization | (400) | (184) |
Net Book Value | 0 | 216 |
Trademarks [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 375 | 375 |
Accumulated Amortization | (375) | (246) |
Net Book Value | $ 0 | $ 129 |
Supplemental Financial Inform_6
Supplemental Financial Information (Details - Amortization expense) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
2022 | $ 2,240 | |
2023 | 2,240 | |
2024 | 2,240 | |
2025 | 1,785 | |
2026 | 850 | |
Total amortization expense | $ 9,355 | $ 12,449 |
Supplemental Financial Inform_7
Supplemental Financial Information (Details - Warranty reserve) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Beginning balance | $ 181 | $ 116 |
Warranty reserve assumed from acquisition of Intrinsyc | 0 | 118 |
Charged to cost of revenues | 226 | 181 |
Usage | (210) | (234) |
Ending balance | $ 197 | $ 181 |
Supplemental Financial Inform_8
Supplemental Financial Information (Details - Other liabilities) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued variable consideration | $ 1,347 | $ 1,462 |
Customer deposits and refunds | 1,133 | 628 |
Accrued raw materials purchases | 176 | 272 |
Deferred revenue | 850 | 658 |
Lease liability | 1,174 | 1,273 |
Taxes payable | 388 | 395 |
Warranty reserve | 197 | 181 |
Accrued operating expenses | 2,063 | 1,439 |
Total other current liabilities | 7,328 | 6,308 |
Non-current | ||
Lease liability | 1,155 | 1,796 |
Deferred revenue | 241 | 166 |
Total other non-current liabilities | $ 1,396 | $ 1,962 |
Supplemental Financial Inform_9
Supplemental Financial Information (Details - Net Loss per Share) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Numerator: | ||
Net loss | $ (4,044) | $ (10,738) |
Denominator: | ||
Weighted-average shares outstanding - basic and diluted | 28,708 | 25,281 |
Net loss per share - basic and diluted | $ (0.14) | $ (0.42) |
Supplemental Financial Infor_10
Supplemental Financial Information (Details - Equivalents) - shares | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Common stock equivalents | 823 | 1,675 |
Supplemental Financial Infor_11
Supplemental Financial Information (Details - Severance of Related Charges) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Severance payable, beginning balance | $ 615 | |
Charges | 506 | $ 3,844 |
Payments | (1,033) | |
Severance payable, ending balance | $ 88 | $ 615 |
Supplemental Financial Infor_12
Supplemental Financial Information (Details - Non-cash acquisition) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Share consideration for acquisition of Intrinsyc | $ 0 | $ 15,574 |
Accrued property and equipment paid for in the subsequent period | $ 217 | $ 149 |
Supplemental Financial Infor_13
Supplemental Financial Information (Details Narrative) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Goodwill | $ 15,810 | $ 15,810 |
Bank Loan Agreements (Details -
Bank Loan Agreements (Details - Summarizes our outstanding debt) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Debt Disclosure [Abstract] | ||
Outstanding borrowings on Term Loan Facility | $ 3,750 | $ 5,250 |
Less: Unamortized debt issuance costs | (68) | (96) |
Net Carrying amount of debt | 3,682 | 5,154 |
Less: Current portion | (1,472) | (1,472) |
Non-current portion | $ 2,210 | $ 3,682 |
Bank Loan Agreements (Details_2
Bank Loan Agreements (Details - Credit Line) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Debt Disclosure [Abstract] | ||
Outstanding borrowings on the line of credit | $ 0 | $ 0 |
Available borrowing capacity on the line of credit | 6,000 | 5,602 |
Outstanding letters of credit | $ 51 | $ 51 |
Bank Loan Agreements (Details N
Bank Loan Agreements (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,500 | |
Interest expense | 278 | |
Long-term Line of Credit | $ 3,750 | $ 5,250 |
Silicon Valley Bank [Member] | ||
Line of Credit Facility [Line Items] | ||
Maturity date | Feb. 2, 2026 | |
Long-term Line of Credit | $ 17,500 | |
Senior Credit Facilities [Member] | Silicon Valley Bank [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate description | Advances under the Senior Credit Facilities bear interest at LIBOR or the Prime Rate, at the option of Lantronix, plus a margin that ranges from 3.00% to 4.00% in the case of LIBOR and 1.50% to 2.50% in the case of the Prime Rate, depending on the total leverage of the Borrowers and their subsidiaries with a LIBOR floor of 0.50% and a Prime Rate floor of 3.25%. | |
Mezzanine Credit Facility [Member] | Silicon Valley Bank [Member] | ||
Line of Credit Facility [Line Items] | ||
Interest rate description | Advances under the Mezzanine Credit Facility bear interest at LIBOR or the Prime Rate, at the option of Lantronix, plus a margin of 9.00% with a floor of 1.00% in the case of LIBOR and a margin of 7.50% with a floor of 3.50% in the case of the Prime Rate. | |
Amended Agreement Svb [Member] | Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 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] | ||
Line of Credit Facility [Line Items] | ||
Maturity date | Jan. 1, 2020 | |
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 |
Stockholders Equity (Details -
Stockholders Equity (Details - Option assumptions) - Options Held [Member] | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 7 years | 4 years 3 months 18 days |
Expected volatility | 69.00% | 65.00% |
Risk-free interest rate | 0.59% | 1.56% |
Dividend yield | 0.00% | 0.00% |
Stockholders Equity (Details _2
Stockholders Equity (Details - Option activity) - Options Held [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Jun. 30, 2021USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Shares Options Outstanding, Beginning | shares | 2,055 |
Exercise Price Outstanding, Beginning | $ / shares | $ 2.72 |
Number of Shares Options Granted | shares | 50 |
Exercise Price Granted | $ / shares | $ 4.41 |
Number of Shares Options Forfeited | shares | (38) |
Exercise Price Forfeited | $ / shares | $ 1.81 |
Number of Shares Options Expired | shares | (18) |
Exercise Price Expired | $ / shares | $ 2.20 |
Number of Shares Options Exercised | shares | (352) |
Exercise Price Exercised | $ / shares | $ 1.79 |
Number of Shares Options Outstanding, Ending | shares | 1,697 |
Exercise Price Outstanding, Ending | $ / shares | $ 2.98 |
Weighted Average Remaining Contractual Life (in years) Outstanding, Ending | 3 years 10 months 24 days |
Aggregate Intrinsic Value Outstanding | $ | $ 3,699 |
Number of Shares Options Options exercisable at end of period | shares | 1,278 |
Exercise Price Options exercisable at end of period | $ / shares | $ 2.71 |
Weighted Average Remaining Contractual Life (in years) Exercisable | 3 years 6 months |
Aggregate Intrinsic Value Exercisable | $ | $ 3,123 |
Stockholders Equity (Details _3
Stockholders Equity (Details - Other option information) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Equity [Abstract] | ||
Weighted-average grant date fair value per share | $ 2.84 | $ 1.90 |
Intrinsic value of options exercised | $ 1,110 | $ 1,850 |
Stockholders Equity (Details _4
Stockholders Equity (Details - RSU activity) - Restricted Stock Units (RSUs) [Member] shares in Thousands | 12 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Balance at beginning | shares | 927 |
RSU Shares Weighted-Average Grant-Date Fair Value per Share, beginning | $ / shares | $ 3.93 |
Granted | shares | 400 |
RSU Shares Granted, Weighted-Average Grant-Date Fair Value per Share | $ / shares | $ 4.69 |
Forfeited | shares | (45) |
RSU Shares Forfeited, Weighed-Average Grant Date Fair Value per Share | $ / shares | $ 3 |
Vested | shares | (364) |
RSU Shares Vested, Weighted-Average Grant-Date Fair Value per Share | $ / shares | $ 3.77 |
Balance at ending | shares | 918 |
RSU Shares Weighted-Average Grant-Date Fair Value per Share, ending | $ / shares | $ 4.14 |
Stockholders Equity (Details _5
Stockholders Equity (Details - RSU activity) (Restricted Stock Units) - Performance Stock Units P S U [Member] shares in Thousands | 12 Months Ended |
Jun. 30, 2021shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Balance at beginning | 985 |
Granted | 415 |
Forfeited | (115) |
Vested | (201) |
Balance at ending | 1,084 |
Stockholders Equity (Details _6
Stockholders Equity (Details - ESPP Assumptions) - Employee Stock [Member] | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 6 months | 6 months |
Expected volatility | 62.00% | 61.00% |
Risk-free interest rate | 0.08% | 1.00% |
Dividend yield | 0.00% | 0.00% |
Stockholders Equity (Details _7
Stockholders Equity (Details - ESPP activity) - Employee Stock [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Jun. 30, 2021USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares available for issuance, beginning balance | 404 |
Shares issued | (154) |
Shares available for future issuance, ending balance | 250 |
Weighted average purchase price per share | $ / shares | $ 3.36 |
Intrinsic value of ESPP shares on purchase date | $ | $ 225 |
Stockholders Equity (Details _8
Stockholders Equity (Details - Share based compensation) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Total share-based compensation | $ 3,584 | $ 3,639 |
Cost of Sales [Member] | ||
Total share-based compensation | 281 | 227 |
Selling, General and Administrative Expenses [Member] | ||
Total share-based compensation | 2,719 | 2,959 |
Research and Development Expense [Member] | ||
Total share-based compensation | $ 584 | $ 453 |
Stockholders Equity (Details _9
Stockholders Equity (Details - Unrecognized expense) $ in Thousands | 12 Months Ended |
Jun. 30, 2021USD ($) | |
Options Held [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized share-based compensation expense | $ 864 |
Weighted average years to recognize | 1 year 8 months 12 days |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized share-based compensation expense | $ 3,404 |
Weighted average years to recognize | 2 years 7 months 6 days |
Performance Stock Units P S U [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized share-based compensation expense | $ 958 |
Weighted average years to recognize | 1 year 6 months |
Employee Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized share-based compensation expense | $ 86 |
Weighted average years to recognize | 4 months 24 days |
Stockholders_ Equity (Details N
Stockholders’ Equity (Details Narrative) - shares shares in Thousands | 1 Months Ended | ||
Nov. 30, 2020 | Oct. 31, 2019 | Jun. 30, 2021 | |
Performance Stock Units P S U [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options granted | 415 | 975 | |
2010 SIP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for grant | 1,097 | ||
N 2020 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for grant | 2,995 |
Retirement Plan (Details Narrat
Retirement Plan (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Retirement Benefits [Abstract] | ||
Contributions made by Company | $ 280 | $ 219 |
Income Taxes (Details - Income
Income Taxes (Details - Income tax provision) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Current: | ||
Federal | $ 8 | $ (2) |
State | 5 | 4 |
Foreign | 182 | 142 |
Total Current taxes | 195 | 144 |
Deferred: | ||
Federal | 0 | 0 |
State | 0 | 0 |
Foreign | 0 | 0 |
Provision for income taxes | $ 195 | $ 144 |
Income Taxes (Details - US and
Income Taxes (Details - US and foreign income) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
United States | $ (3,294) | $ (7,048) |
Foreign | (555) | (3,546) |
Loss before income taxes | $ (3,849) | $ (10,594) |
Income Taxes (Details - Deferre
Income Taxes (Details - Deferred tax assets) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Deferred tax assets: | ||
Tax losses and credits | $ 20,281 | $ 20,640 |
Reserves not currently deductible | 1,537 | 1,205 |
Deferred compensation | 1,579 | 986 |
Inventory capitalization | 748 | 631 |
Lease liabilities | 459 | 458 |
Depreciation and amortization | 1,572 | 790 |
Other | 285 | 130 |
Gross deferred tax assets | 26,461 | 24,840 |
Valuation allowance | (25,588) | (24,056) |
Deferred tax assets, net | 873 | 784 |
Deferred tax liabilities: | ||
State taxes | (388) | (343) |
Right-of-use assets | (485) | (441) |
Deferred tax liabilities | (873) | (784) |
Net deferred tax assets (liabilities) | $ 0 | $ 0 |
Income Taxes (Details - Reconci
Income Taxes (Details - Reconciliation) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Statutory federal provision (benefit) for income taxes | $ (809) | $ (2,224) |
Increase (decrease) resulting from: | ||
Stock options | (320) | (121) |
Other permanent differences | (9) | 10 |
Change in valuation allowance | 1,285 | 1,467 |
Foreign tax credit | (84) | (67) |
Global intangible low-tax income inclusion | 82 | 86 |
Controlled foreign corporation inclusion | 0 | 4 |
Foreign tax rate variances | 299 | 886 |
Acquisition costs | 53 | 0 |
Other | (302) | 103 |
Provision for income taxes | $ 195 | $ 144 |
Income Taxes (Details - NOL's)
Income Taxes (Details - NOL's) $ in Thousands | Jun. 30, 2021USD ($) |
Income Tax Disclosure [Abstract] | |
Federal | $ 91,974 |
State | $ 11,038 |
Income Taxes (Details - Unrecog
Income Taxes (Details - Unrecognized tax positions) $ in Thousands | 12 Months Ended |
Jun. 30, 2021USD ($) | |
Income Tax Disclosure [Abstract] | |
Balance, beginning | $ 6,600 |
Change in balances related to uncertain tax positions | 0 |
Balance, ending | $ 6,600 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) $ in Thousands | 12 Months Ended |
Jun. 30, 2021USD ($) | |
Income Tax Disclosure [Abstract] | |
Net operating loss carryover | $ 51,862 |
NOL carryover expiration date | Jun. 30, 2023 |
Decrease in deferred tax assets | $ 6,600 |
Accrued interest and penalties related to uncertain tax positions | $ 265 |
Leases (Details - Components of
Leases (Details - Components of lease expense) $ in Thousands | 12 Months Ended |
Jun. 30, 2021USD ($) | |
Components of lease expense | |
Operating lease cost | $ 1,805 |
Financing lease cost | 9 |
Supplemental cash flow information | |
Cash paid for amounts included in the measurement of operating lease liabilities | 1,344 |
Cash paid for amounts included in the measurement of financing lease liabilities | 9 |
Right-of-use assets obtained in exchange for lease obligation | $ 613 |
Leases (Details - Maturities of
Leases (Details - Maturities of lease liabilities) $ in Thousands | Jun. 30, 2021USD ($) |
Operating Lease [Member] | |
2021 | $ 1,278 |
2022 | 530 |
2023 | 402 |
2024 | 198 |
2025 | 107 |
Total remaining lease payments | 2,515 |
less: imputed interest | (207) |
Lease liability | 2,308 |
Current liabilities | 1,165 |
Long-term liabilities | 1,143 |
Finance Lease [Member] | |
2021 | 9 |
2022 | 9 |
2023 | 3 |
2024 | 0 |
2025 | 0 |
Total remaining lease payments | 21 |
less: imputed interest | 0 |
Lease liability | 21 |
Current liabilities | 9 |
Long-term liabilities | $ 12 |
Significant Geographic, Custo_3
Significant Geographic, Customer and Supplier Information (Details - Geographic) - Revenue Benchmark [Member] - Customer Concentration Risk [Member] | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Americas [Member] | |||
Revenue, Major Customer [Line Items] | |||
Significant countries, net revenue percentage | 54.00% | 56.00% | |
EMEA [Member] | |||
Revenue, Major Customer [Line Items] | |||
Significant countries, net revenue percentage | 24.00% | 26.00% | |
Asia Pacific [Member] | |||
Revenue, Major Customer [Line Items] | |||
Significant countries, net revenue percentage | 22.00% | 18.00% | |
All Geographic Regions [Member] | |||
Revenue, Major Customer [Line Items] | |||
Significant countries, net revenue percentage | 100.00% | 100.00% | |
North America [Member] | |||
Revenue, Major Customer [Line Items] | |||
Significant countries, net revenue percentage | 53.00% | 48.00% | |
GERMANY | |||
Revenue, Major Customer [Line Items] | |||
Significant countries, net revenue percentage | 10.00% | 18.00% | |
TAIWAN, PROVINCE OF CHINA | |||
Revenue, Major Customer [Line Items] | |||
Significant countries, net revenue percentage | 6.00% | [1] | |
JAPAN | |||
Revenue, Major Customer [Line Items] | |||
Significant countries, net revenue percentage | 6.00% | 5.00% | |
HONG KONG | |||
Revenue, Major Customer [Line Items] | |||
Significant countries, net revenue percentage | 6.00% | ||
[1] | Less than 5% |
Significant Geographic, Custo_4
Significant Geographic, Customer and Supplier Information (Details - Long lived assets) - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 29,173 | $ 33,191 |
UNITED STATES | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 15,737 | 16,891 |
CANADA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 12,619 | 15,973 |
Rest Of World [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 817 | $ 327 |
Significant Geographic, Custo_5
Significant Geographic, Customer and Supplier Information (Details - Significant customers) - Revenue Benchmark [Member] - Customer Concentration Risk [Member] | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Top five customers [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | [1] | 37.00% | 36.00% |
Ingram Micro [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 15.00% | 16.00% | |
[1] | Includes Ingram Micro the fiscal years ended June 30, 2021 and 2020. |