Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2017 | Apr. 28, 2017 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | CSII | |
Entity Registrant Name | CARDIOVASCULAR SYSTEMS INC | |
Entity Central Index Key | 1,180,145 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 32,712,058 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Current assets | ||
Cash and cash equivalents | $ 103,130 | $ 60,638 |
Accounts receivable, net | 27,877 | 23,128 |
Inventories | 16,605 | 17,440 |
Marketable securities | 741 | 684 |
Prepaid expenses and other current assets | 3,479 | 2,992 |
Total current assets | 151,832 | 104,882 |
Property and equipment, net | 30,213 | 32,471 |
Patents, net | 4,752 | 5,013 |
Other assets | 60 | 40 |
Total assets | 186,857 | 142,406 |
Current liabilities | ||
Accounts payable | 8,813 | 8,506 |
Accrued expenses | 29,837 | 26,993 |
Total current liabilities | 38,650 | 35,499 |
Long-term liabilities | ||
Financing Obligation, Long Term | 20,973 | 0 |
Deferred revenue | 10,000 | 0 |
Other liabilities | 3,752 | 6,010 |
Total liabilities | 73,375 | 41,509 |
Commitments and contingencies (see Note 6) | 0 | 0 |
Common stock, $0.001 par value; authorized 100,000,000 common shares at March 31, 2017 and June 30, 2016; issued and outstanding 32,703,971 at March 31, 2017 and 32,792,497 at June 30, 2016, respectively | 33 | 33 |
Additional paid in capital | 443,427 | 428,235 |
Accumulated other comprehensive income | 97 | 40 |
Accumulated deficit | (330,075) | (327,411) |
Total stockholders’ equity | 113,482 | 100,897 |
Total liabilities and stockholders’ equity | $ 186,857 | $ 142,406 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2017 | Jun. 30, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 32,703,971 | 32,792,497 |
Common stock, shares outstanding | 32,703,971 | 32,792,497 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||||
Net revenues | $ 52,144 | $ 44,461 | $ 151,987 | $ 129,724 |
Cost of goods sold | 11,139 | 8,725 | 29,768 | 25,567 |
Gross profit | 41,005 | 35,736 | 122,219 | 104,157 |
Expenses: | ||||
Selling, general and administrative | 37,332 | 42,338 | 108,191 | 124,991 |
Research and development | 5,432 | 5,748 | 16,572 | 19,895 |
Restructuring Charges | 0 | 2,376 | 0 | 2,376 |
Litigation Settlement, Expense | 0 | 8,000 | 0 | 8,000 |
Total expenses | 42,764 | 58,462 | 124,763 | 155,262 |
Loss from operations | (1,759) | (22,726) | (2,544) | (51,105) |
Other (income) and expense, net | (28) | (21) | (46) | (22) |
Loss before income taxes | (1,731) | (22,705) | (2,498) | (51,083) |
Provision for income taxes | 18 | 11 | 66 | 57 |
Net loss | $ (1,749) | $ (22,716) | $ (2,564) | $ (51,140) |
Net loss per common share: | ||||
Earnings Per Share, Basic and Diluted | $ (0.05) | $ (0.69) | $ (0.08) | $ (1.57) |
Weighted average common shares used in computation: | ||||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 32,650,974 | 32,711,341 | 32,232,409 | 32,491,271 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities | ||
Net loss | $ (2,564) | $ (51,140) |
Adjustments to reconcile net loss to net cash used in operations | ||
Depreciation of property and equipment | 2,932 | 2,728 |
Amortization and write-off of patents | 883 | 215 |
Provision for doubtful accounts | 315 | 600 |
Loss on disposal of property and equipment | 158 | 8 |
Stock-based compensation | 8,336 | 10,392 |
Changes in assets and liabilities | ||
Accounts receivable | (5,064) | 7,532 |
Inventories | 835 | (4,260) |
Prepaid expenses and other assets | (153) | 2,354 |
Accounts payable | 190 | (1,400) |
Accrued expenses and other liabilities | 615 | 12,771 |
Deferred revenue | 10,000 | 0 |
Net cash provided by (used in) operating activities | 16,483 | (20,200) |
Cash flows from investing activities | ||
Purchases of property and equipment | (841) | (3,245) |
Issuance of convertible note receivable | 0 | (350) |
Purchases of marketable securities | 0 | (37) |
Costs incurred in connection with patents | (496) | (512) |
Net cash used in investing activities | (1,337) | (4,144) |
Cash flows from financing activities | ||
Proceeds from employee stock purchase plan | 1,400 | 1,670 |
Exercise of stock options | 5,002 | 1,006 |
Sale Leaseback Transaction, Net Proceeds, Financing Activities | 20,944 | 0 |
Net cash provided by financing activities | 27,346 | 2,676 |
Net change in cash and cash equivalents | 42,492 | (21,668) |
Cash and cash equivalents | ||
Beginning of period | 60,638 | $ 83,842 |
End of period | $ 103,130 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (1,749) | $ (22,716) | $ (2,564) | $ (51,140) |
Other comprehensive income (loss): | ||||
Unrealized gain (loss) on available for sale securities | 20 | 37 | 57 | (5) |
Comprehensive loss | $ (1,729) | $ (22,679) | $ (2,507) | $ (51,145) |
Business Overview
Business Overview | 9 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Overview | Business Overview Company Description Cardiovascular Systems, Inc. (the “Company”) develops, manufactures and markets devices for the treatment of vascular diseases. The Company’s peripheral arterial disease (“PAD”) products, the Diamondback 360 ® Peripheral Orbital Atherectomy System (“OAS”) and the Stealth 360° ® Peripheral OAS, are catheter-based platforms capable of treating a broad range of plaque types, including calcified plaque, in leg arteries both above and below the knee, and address many of the limitations associated with other surgical, catheter and pharmacological treatment alternatives. These devices use small access sheaths that can provide procedural benefits and allow physicians to treat PAD patients in a variety of vessel sizes, including the small and tortuous vessels located below the knee through alternative access sites in the ankle and foot as well as in the groin. In October 2013, the Company received premarket approval from the United States Food and Drug Administration (“FDA”) to market the Diamondback 360 ® Coronary OAS as a treatment for severely calcified coronary arteries. In March 2017, the Company received approval from the FDA to market the Diamondback 360 ® Coronary OAS Micro Crown. The Coronary OAS Micro Crown is the only atherectomy device designed to treat both tight, calcific lesions and up to 4mm vessels. The Company is currently only selling its products in the United States. In November 2016, the Company signed an exclusive distribution agreement with Medikit Co., Ltd. (“Medikit”) to sell its Diamondback 360 ® Coronary and Peripheral OAS in Japan. In March 2017, the Company received approval from Japan’s Ministry of Health, Labor and Welfare for its Diamondback 360 ® Coronary OAS Micro Crown. Pending reimbursement approval, Japan would become the first international market for any of the Company’s products. The Company is currently evaluating options for additional international expansion to maximize the coronary and peripheral market opportunities. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Interim Financial Statements The Company prepared the unaudited interim consolidated financial statements and related unaudited financial information in the footnotes in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. The year-end consolidated balance sheet was derived from the Company’s audited consolidated financial statements, but does not include all disclosures as required by GAAP. These interim consolidated financial statements reflect all adjustments consisting of normal recurring accruals, which, in the opinion of management, are necessary for a fair statement of the Company’s consolidated financial position, the results of its operations and its cash flows for the interim periods. These interim consolidated financial statements should be read in conjunction with the consolidated annual financial statements and the notes thereto included in the Form 10-K filed by the Company with the SEC on August 25, 2016. The nature of the Company’s business is such that the results of any interim period may not be indicative of the results to be expected for the entire year. Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Stock-Based Compensation The Company has stock-based compensation plans, which include stock options, nonvested share awards, and an employee stock purchase plan. Fair value of option awards is determined using option-pricing models, fair value of nonvested share awards with market conditions is determined using the Monte Carlo simulation, and fair value of nonvested share awards that vest based upon performance or service conditions is determined by the closing market price of the Company's stock on the date of grant. Stock-based compensation expense is recognized ratably over the requisite performance or service period for the awards expected to vest. Revenue Recognition The Company sells its products almost exclusively via direct shipment to hospitals or clinics. The Company recognizes revenue when all of the following criteria are met: persuasive evidence of an arrangement exists; delivery has occurred; the sales price is fixed or determinable; and collectability is reasonably assured. The Company records estimated sales returns, discounts and rebates as a reduction of net sales. Costs related to products delivered are recognized in the period revenue is recognized. Cost of goods sold consists primarily of raw materials, direct labor, and manufacturing overhead. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue From Contracts with Customers.” The guidance requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. The guidance also requires expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required about customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. ASU 2014-09 was initially to be effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period, using one of two prescribed retrospective methods. Early adoption was not to be permitted. In August 2015, the FASB issued ASU 2015-14 to defer the effective date of ASU 2014-09 by one year and allow early adoption for all entities but not before the original public entity effective date. The guidance is effective for the Company on July 1, 2018. During 2016, the FASB also issued ASU 2016-08, "Principal versus Agent Considerations (Reporting Revenue Gross versus Net)"; ASU 2016-10, "Identifying Performance Obligations and Licensing"; ASU 2016-12, "Narrow-Scope Improvements and Practical Expedients", and ASU 2016-20, "Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers," which amend ASU No. 2014-09. ASU 2016-08 is not applicable to the Company. ASU 2016-10 clarifies how entities would determine whether promised goods or services are separately identifiable from other promises in a contract and, therefore, would be accounted for separately. The guidance would also allow entities to disregard goods or services that are immaterial in the context of a contract and provides an accounting policy election to account for shipping and handling activities as fulfillment costs rather than as additional promised services. ASU 2016-12 addressed implementation issues relative to transition (adding a practical expedient for contract modifications and clarifying what constitutes a completed contract when employing ASU 2014-09’s full or modified retrospective transition methods), collectability, noncash consideration, and the presentation of sales and other similar-type taxes (allowing entities to exclude sales-type taxes collected from transaction price). ASU 2016-20 makes certain technical corrections and provide additional guidance in the areas of disclosure of performance obligations, provisions for losses on certain types of contracts, scoping, and other areas. The Company is currently evaluating the potential impact and method of adoption of ASU 2014-09, as amended, on the Company's consolidated financial statements and related disclosures and are comparing current policies and practices to the requirements of the standard. In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern.” The guidance requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date of issuance of the entity's financial statements. The entity must also provide certain disclosures if there is substantial doubt about the entity's ability to continue as a going concern. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods thereafter. Early adoption is permitted. The guidance is effective for the Company as of June 30, 2017. The Company does not anticipate an impact on its financial statements upon adoption. In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory.” The guidance requires an entity to measure inventory within the scope of the ASU at the lower of cost and net realizable value. ASU 2015-11 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2016 and should be applied prospectively. Early adoption is permitted. The guidance is effective for the Company on July 1, 2017. The Company does not anticipate a material impact on its financial statements upon adoption. In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes.” The guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. ASU 2015-17 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2016 and can be applied either prospectively or retrospectively. Early adoption is permitted. The guidance is effective for the Company on July 1, 2017. The Company does not anticipate a material impact on its financial statements upon adoption. In February 2016, the FASB issued ASU 2016-02, “Leases.” The guidance requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. ASU 2016-02 is effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods, and should be applied using a modified retrospective approach. Early adoption is permitted. The guidance is effective for the Company on July 1, 2019. The Company is currently evaluating the timing, method of adoption and impact of the new lease guidance on its financial statements. In March 2016, the FASB issued ASU 2016-09, “Stock Compensation.” The guidance simplifies several aspects related to the accounting for share-based payment transactions, including the accounting for income taxes, classification on the statement of cash flows, forfeitures, and statutory withholding requirements. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted and transition requirements vary based on the amendments adopted. The guidance is effective for the Company on July 1, 2017. The Company is currently evaluating the impact of the stock compensation guidance on its financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Measurement of Credit Losses on Financial Instruments,” which revises guidance for the accounting for credit losses on financial instruments within its scope. The new standard introduces an approach, based on expected losses, to estimate credit losses on certain types of financial instruments and modifies the impairment model for available-for-sale debt securities. The new approach to estimating credit losses (referred to as the current expected credit losses model) applies to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans, held-to-maturity debt securities, net investments in leases and off-balance-sheet credit exposures. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted and should be applied as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The guidance is effective for the Company on July 1, 2020. The Company does not anticipate a material impact on its financial statements upon adoption. |
Selected Consolidated Financial
Selected Consolidated Financial Statement Information | 9 Months Ended |
Mar. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Consolidated Financial Statement Information | Selected Consolidated Financial Statement Information Accounts Receivable, Net Accounts receivable consists of the following: March 31, June 30, 2017 2016 Accounts receivable $ 28,751 $ 23,840 Less: Allowance for doubtful accounts (874 ) (712 ) Accounts receivable, net $ 27,877 $ 23,128 Inventories Inventories consist of the following: March 31, June 30, 2017 2016 Raw materials $ 7,419 $ 7,439 Work in process 1,021 1,142 Finished goods 8,165 8,859 Inventories $ 16,605 $ 17,440 Property and Equipment, Net Property and equipment consists of the following: March 31, June 30, 2017 2016 Land $ 500 $ 500 Building 22,420 22,575 Equipment 16,194 14,141 Furniture 2,708 2,709 Leasehold improvements 86 86 Construction in progress 310 1,533 42,218 41,544 Less: Accumulated depreciation (12,005 ) (9,073 ) Property and equipment, net $ 30,213 $ 32,471 On December 29, 2016, the Company entered into a Purchase and Sale Agreement, as subsequently amended (collectively, the “Sale Agreement”), with Krishna Holdings, LLC (the “Buyer”), providing for the sale to Buyer of the Company’s headquarters facility in St. Paul, Minnesota (the “Facility”), for a cash purchase price of $21,500 . On March 30, 2017, the sale of the Facility under the Sale Agreement closed. The Company received proceeds of approximately $ 20,944 ( $21,500 , less $556 of transaction expenses). The net proceeds are to be used for working capital and general corporate purposes. In connection with the sale, the Company recorded an impairment charge of $158 . Under the Sale Agreement, the Company entered into a Lease Agreement (the “Lease Agreement”) with Krishna Holdings, LLC, Apex Holdings, LLC, Kashi Associates, LLC, Keva Holdings, LLC, S&V Ventures, LLC, Polo Group LLC, SPAV Holdings LLC, Star Associates LLC, and The Global Villa, LLC (collectively, the “Landlord”). As the lease terms resulted in a capital lease classification, the Company accounted for the sale and leaseback of the Facility as a financing transaction where the assets remain on the Company's balance sheet. See Note 4 for further discussion on future payment obligations under the Lease Agreement. Accrued Expenses Accrued expenses consist of the following: March 31, June 30, 2017 2016 Salaries and bonus $ 5,890 $ 4,305 Commissions 7,590 7,788 Accrued vacation 3,430 3,498 Accrued excise, sales and other taxes 3,507 3,372 Accrued litigation 2,600 — Legal settlement 1,806 3,872 Warranty reserve 1,545 145 Clinical studies 565 1,757 Restructuring 307 1,337 Other accrued expenses 2,597 919 Total Accrued expenses $ 29,837 $ 26,993 Legal Settlement On June 28, 2016, the Company entered into a Settlement Agreement (the “Settlement Agreement”) with the United States of America, acting through the Department of Justice (the “DOJ”) and on behalf of the Office of Inspector General of the Department of Health and Human Services, and Travis Thams, to resolve the investigation by the DOJ and the Civil Action underlying such investigation. Under the Settlement Agreement, the Company agreed to pay $8,000 (the “Settlement Amount”), as follows: an initial payment of $3,000 , paid on July 1, 2016, with the remaining $5,000 , which bears interest at 1.8% per annum, payable in 11 equal quarterly installments, beginning January 1, 2017. The amount payable within the next twelve months is included in accrued expenses (as noted in the table above) with the long-term portion included in other liabilities (as noted in the table below). Under the Settlement Agreement, if the Company makes a single payment in excess of $2,000, which payment is not covered by an insurance policy, in settlement of any claims before paying the full Settlement Amount, the remaining unpaid balance of the Settlement Amount will become immediately due and payable, with interest accruing on the unpaid principal portion at an interest rate of 1.8% per annum. Restructuring On March 31, 2016, the Company announced a restructuring to reduce costs as a part of its plan to progress towards profitability and positive cash flow. As a result, the Company recorded a restructuring expense of $2,364 during the year ended June 30, 2016, which was comprised of severance and other employee related costs. The following table provides information regarding the restructuring accrual: Severance Restructuring accrual at June 30, 2016 $ 1,521 Cash payments (1,189 ) Restructuring accrual at March 31, 2017 $ 332 The Company anticipates that $307 of the restructuring accrual at March 31, 2017 will be paid within the next twelve months and is therefore recorded in accrued expenses on the consolidated balance sheet. Estimated payments of $25 are recorded in other liabilities on the consolidated balance sheet. The Company does not anticipate additional restructuring costs in the near future. CEO Departure On February 29, 2016, the Company’s former Chief Executive Officer (“CEO”) resigned from his positions as President and CEO of the Company and as a director of the Company. The Company and the former CEO entered into a Separation Agreement with benefits consistent with the Company’s Amended and Restated Executive Officer Severance Plan. The total expense related to the former CEO’s departure was $1,507 and was recorded in selling, general and administrative expenses for the year ended June 30, 2016. As of March 31, 2017 , $570 of the package benefits is recorded in accrued expenses (included in salaries and bonus in the table above) and $19 is recorded in other liabilities (included in accrued severance in the table below) on the consolidated balance sheet, representing the long-term portion of the former CEO’s benefits. Pump Recall In April 2017, the Company initiated a voluntary recall of one type of its saline infusion pumps. The Company plans to recall and replace approximately 900 units currently in customer inventory and recorded a reserve for approximately $1,535 of expenses during the three months ended March 31, 2017. The warranty reserve above includes $1,378 of estimated costs related to the recall and replacement of all affected saline infusion pumps. The Company also recorded approximately $60 of accrued consulting fees included in the table above, as well as an inventory reserve of $97 for pumps currently in its inventory. Other Liabilities Other non-current liabilities consist of the following: March 31, June 30, 2017 2016 Legal settlement 2,771 4,128 Deferred compensation 379 684 Deferred grant incentive 476 486 Accrued severance 44 610 Other liabilities 82 102 Total Other liabilities $ 3,752 $ 6,010 Deferred Revenue In November 2016, the Company signed an exclusive distribution agreement with Medikit to sell its Diamondback 360 ® Coronary and Peripheral OAS in Japan. To secure exclusive distribution rights, Medikit made an upfront payment of $10,000 to the Company, which is refundable based on the occurrence of certain events during the term of the agreement. The Company has classified the upfront payment as long-term based on its expectation of when revenue will be recognized. The classification will be re-evaluated on a quarterly basis. |
Debt Debt
Debt Debt | 9 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Debt Revolving Credit Facility On March 31, 2017, the Company entered into a Loan and Security Agreement (the “Loan Agreement”) with Silicon Valley Bank (“SVB”). The Loan Agreement provides for a senior, secured revolving credit facility (the “Revolver”) of $40,000 (the “Maximum Dollar Amount”). Advances under the Revolver may be made from time to time up to the Maximum Dollar Amount, subject to certain borrowing limitations. The Revolver has a maturity date of March 31, 2020 and bears interest at a floating per annum rate equal to the Wall Street Journal prime rate, less 0.25% . Interest on borrowings is due monthly and the principal balance is due at maturity. Borrowings up to $10,000 are available on a non-formula basis. Borrowings above $10,000 are based on (i) 85% of eligible domestic accounts receivable, and (ii) the lesser of 50% of eligible inventory or $5,000 , subject to adjustment as defined in Loan Agreement. Upon the Revolver’s maturity, any outstanding principal balance, unpaid accrued interest, and all other obligations under the Revolver will be due and payable. The Company will incur a fee equal to 1% of the Maximum Dollar Amount upon termination of the Loan Agreement or the Revolver for any reason prior to the maturity date, unless refinanced with SVB. The Company’s obligations under the Loan Agreement are secured by certain of the Company’s assets, including, among other things, accounts receivable, deposit accounts, inventory, equipment, general intangibles and records pertaining to the foregoing. The collateral does not include the Company’s intellectual property, but the Company has agreed not to encumber its intellectual property without the consent of SVB. The Loan Agreement contains customary covenants limiting the Company’s ability to, among other things, incur debt or liens, make certain investments and loans, enter into transactions with affiliates, undergo certain fundamental changes, dispose of assets, or change the nature of its business. In addition, the Loan Agreement contains financial covenants requiring the Company to maintain, at all times when any amounts are outstanding under the Revolver, either (i) minimum unrestricted cash at SVB and unused availability on the Revolver of at least $10,000 or (ii) minimum trailing three-month Adjusted EBITDA of $1,000 . If the Company does not comply with the various covenants under the Loan Agreement, the interest rate on outstanding amounts will increase by 5% and SVB may, subject to various customary cure rights, decline to provide additional advances under the Revolver, require the immediate payment of all amounts outstanding under the Revolver, and foreclose on all collateral. Under the Loan Agreement, the Company paid SVB a non-refundable commitment fee of $80 , which will be amortized to interest expense over the term of the Loan Agreement. The Company is required to pay a fee equal to 0.35% per annum on the unused portion of the Revolver, payable quarterly in arrears. SVB’s obligations to advance funds under the Revolver are subject to an initial collateral examination to be completed within 90 days of the effective date of the Loan Agreement. The Company is not obligated to draw any funds under the Revolver and no amounts are outstanding as of March 31, 2017 . Financing Obligation In connection with the sale of the Facility, the Company entered into an agreement to lease the Facility. The Lease Agreement has an initial term of fifteen years, with four consecutive renewal options of five years each at the Company's option, with a base annual rent in the first year of $1,638 and annual escalations of 3% thereafter. Rent during subsequent renewal terms will be at the then fair market rental rate. As the lease terms resulted in a capital lease classification, the Company accounted for the sale and leaseback of the Facility as a financing transaction where the assets remain on the Company's balance sheet and a financing obligation was recorded for $20,944 . As lease payments are made, they will be allocated between interest expense and a reduction of the financing obligation, resulting in a value of the financing obligation that is equivalent to the net book value of the assets at the end of the lease term. The effective interest rate is 7.97% . At the end of the lease (including any renewal option terms), the Company will remove the assets and financing obligation from its balance sheet. Future payments under the initial term of the Lease Agreement as of March 31, 2017 are as follows: Three months ended June 30, 2017 $ 273 2018 1,650 2019 1,699 2020 1,750 2021 1,803 Thereafter 23,144 $ 30,319 |
Deferred Compensation Plan
Deferred Compensation Plan | 9 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Deferred Compensation Plan | Deferred Compensation Plan The Company offers certain members of management and highly compensated employees the opportunity to defer up to 100% of their base salary (after 401(k), payroll tax and other deductions), performance bonus and discretionary bonus and elect to receive the deferred compensation at a fixed future date of participant’s choosing. Each participant may, at the time of his or her deferral election, choose to allocate the deferred compensation into investment alternatives set by the Human Resources and Compensation Committee. The amount payable to each participant under the plan will change in value based upon the investment selected by that participant and is classified as current or long-term on the Company's balance sheet based on the disbursement elections made by the participants. As of March 31, 2017 , $362 of the amount payable is included in accrued liabilities and $379 is included in other liabilities on the consolidated balance sheet. Future distribution dates are July 1, 2017 and January 1, 2020. The available-for-sale marketable securities are primarily comprised of investments with a fixed income and equity investments and consist of the following: As of March 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Mutual funds $ 644 $ 97 $ — $ 741 Total short-term investments $ 644 $ 97 $ — $ 741 As of June 30, 2016 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Mutual funds $ 644 $ 40 $ — $ 684 Total short-term investments $ 644 $ 40 $ — $ 684 During the nine months ended March 31, 2017 and 2016 , there were $0 and $37 , respectively, in purchases of available-for-sale securities. There were no sales or other-than-temporary impairments during the nine months ended March 31, 2017 and 2016, respectively. The following table provides information by level for the Company's available-for-sale marketable securities that were measured at fair value on a recurring basis: Fair Value Measurements as of March 31, 2017 Using Inputs Considered as Fair Value Level 1 Level 2 Level 3 Mutual funds $ 741 $ 479 $ 262 $ — Total short-term investments $ 741 $ 479 $ 262 $ — Fair Value Measurements as of June 30, 2016 Using Inputs Considered as Fair Value Level 1 Level 2 Level 3 Mutual funds $ 684 $ 425 $ 259 $ — Total short-term investments $ 684 $ 425 $ 259 $ — The Company's marketable securities classified within Level 1 are valued using real-time quotes for transactions in active exchange markets. Marketable securities within Level 2 are valued using readily available pricing sources. There were no transfers of assets between Level 1 and Level 2 of the fair value measurement hierarchy during the nine months ended March 31, 2017 . Any transfers between levels would be recognized on the date of the event or when a change in circumstances causes a transfer. |
Stock Options and Restricted St
Stock Options and Restricted Stock Awards | 9 Months Ended |
Mar. 31, 2017 | |
Share-based Arrangements with Employees and Nonemployees [Abstract] | |
Stock Options and Restricted Stock Awards | Stock Options and Restricted Stock Awards The Company maintains the 2014 Equity Incentive Plan (the “2014 Plan”) for the purpose of granting equity awards to employees, directors and consultants. The 2014 Plan was approved by the Company’s stockholders and became effective in November 2014 and was subsequently amended in May 2015. The 2014 Plan replaced the 2007 Equity Incentive Plan (the “2007 Plan”), and no further equity awards may be granted under the 2007 Plan. The Company also maintains one other terminated plan, the 2003 Stock Option Plan (the “2003 Plan”) (the 2014 Plan, the 2007 Plan, and the 2003 Plan are collectively referred to as the “Plans”). Stock Options All options granted under the Plans become exercisable over periods established at the date of grant. The option exercise price, as determined by the Company’s management and Board of Directors, is generally not less than the estimated fair market value of the Company’s common stock at the date of grant. In addition, the Company has granted nonqualified stock options to a director outside of the Plans. An employee's vested options must be exercised at or within 90 days of termination to avoid forfeiture. As of March 31, 2017 , all outstanding options were fully vested. Stock option activity for the nine months ended March 31, 2017 is as follows: Number of Options (a) Weighted Average Exercise Price Options outstanding at June 30, 2016 606,879 $ 10.14 Options exercised (490,804 ) $ 10.40 Options expired (9,381 ) $ 8.83 Options outstanding at March 31, 2017 106,694 $ 9.10 (a) Includes the effect of options granted, exercised, forfeited or expired from the 2003 Plan and 2007 Plan, and options granted outside such plans. Restricted Stock For restricted stock awards that vest solely based on time, the fair value of each restricted stock award is equal to the fair market value of the Company’s common stock at the date of grant. Vesting of restricted stock awards generally ranges from one to three years . The estimated fair value of restricted stock awards, including the effect of estimated forfeitures, is recognized on a straight-line basis over the restricted stock’s vesting period. Restricted stock award activity for the nine months ended March 31, 2017 is as follows: Number of Shares Weighted Average Fair Value Outstanding at June 30, 2016 957,689 $ 22.99 Granted 258,346 $ 21.80 Forfeited (390,637 ) $ 12.34 Vested (289,584 ) $ 24.14 Outstanding at March 31, 2017 535,814 $ 21.44 Performance-Based Restricted Stock On August 8, 2016 and August 17, 2016, the Company granted restricted stock awards to its executives and management. These awards included grants of an aggregate maximum 336,826 shares that vest based on the Company’s total shareholder return relative to total shareholder return of the Company’s peer group, as measured by the closing prices of the stock of the Company and the peer group members for the 90 trading days preceding July 1, 2016 compared to the closing prices of the stock of the Company and the peer group members for the 90 trading days preceding July 1, 2019. Vesting of these awards will be determined on the date that the Company’s Annual Report on Form 10-K for the fiscal year ending June 30, 2019 is filed. To calculate the estimated fair value of these restricted stock awards with market conditions, the Company uses a Monte Carlo simulation, which uses the expected average stock prices to estimate the expected number of shares that will vest. The Monte Carlo simulation resulted in a fair value of approximately $4,032 , which the Company will recognize as expense using the straight-line method over the period that the awards are expected to vest. Stock-based compensation expense related to an award with a market condition will be recognized regardless of whether the market condition is satisfied, provided that the requisite service has been provided. Performance-based restricted stock award activity for the nine months ended March 31, 2017 is as follows: Number of Shares Weighted Average Fair Value Outstanding at June 30, 2016 — $ — Granted 336,826 $ 11.97 Forfeited (2,321 ) $ 11.97 Vested — $ — Outstanding at March 31, 2017 334,505 $ 11.97 |
Commitment and Contingencies
Commitment and Contingencies | 9 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitment and Contingencies Operating Leases The Company leases manufacturing and other space, as well as equipment, under lease agreements that expire at various dates through March 2020 . Rental expenses were $164 and $140 for the three months ended March 31, 2017 and 2016 , respectively, and $485 and $781 for the nine months ended March 31, 2017 and 2016 , respectively. Future minimum lease payments under the agreements as of March 31, 2017 are as follows: Three months ended June 30, 2017 $ 149 Fiscal 2018 524 Fiscal 2019 473 Fiscal 2020 353 $ 1,499 Stockholder Securities Litigation With respect to Shoemaker v. Cardiovascular Systems, Inc. et al., 0:16-cv-00568 (D. Minn.) described in Note 9 of the notes to the consolidated annual financial statements, included in the Annual Report on Form 10-K filed by the Company with the SEC on August 25, 2016, the Company filed a motion to dismiss the complaint in this action on August 29, 2016. A hearing was held on the motion to dismiss on December 2, 2016. On March 29, 2017, the court granted the Company's motion to dismiss the complaint and dismissed the plaintiffs' amended complaint without prejudice. The court granted the plaintiffs' request for leave to amend their complaint, which amended complaint must be filed within 90 days of the court's order. Stockholder Derivative Action With respect to the stockholder derivative action described in Note 9 of the notes to the consolidated annual financial statements, included in the Annual Report on Form 10-K filed by the Company with the SEC on August 25, 2016, the parties filed with the court a stipulated order dismissing the derivative action without prejudice on November 17, 2016. The stipulated order of voluntary dismissal came after plaintiff had filed a notice of dismissal on October 19, 2016 and defendants filed a conditional opposition. Defendants had sought to have the court impose additional restrictions on plaintiff as a condition for granting the request for dismissal. The parties then engaged in discussions and resolved the issues, with the defendants withdrawing their opposition and an agreement being reached to have the case dismissed. On November 18, 2016, the court entered the order dismissing the action. Accordingly, the stockholder derivative action is no longer pending. Other Matters In the ordinary conduct of business, the Company is subject to various lawsuits and claims covering a wide range of matters including, but not limited to, employment claims and commercial disputes. While the outcome of these matters is uncertain, the Company does not believe there are any significant matters as of March 31, 2017 that are probable or estimable, for which the outcome could have a material adverse impact on its consolidated balance sheets or statements of operations. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents a reconciliation of the numerators and denominators used in the basic and diluted earnings per common share computations (in thousands except share and per share amounts): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Numerator Net loss $ (1,749 ) $ (22,716 ) $ (2,564 ) $ (51,140 ) Denominator Weighted average common shares outstanding – basic 32,650,974 32,711,341 32,232,409 32,491,271 Effect of dilutive stock options (1) — — — — Effect of dilutive restricted stock units (2) — — — — Effect of performance-based restricted stock awards (3) — — — — Weighted average common shares outstanding – diluted 32,650,974 32,711,341 32,232,409 32,491,271 Earnings per common share – basic $ (0.05 ) $ (0.69 ) $ (0.08 ) $ (1.57 ) Earnings per common share – diluted $ (0.05 ) $ (0.69 ) $ (0.08 ) $ (1.57 ) (1) At March 31, 2017 and 2016, 106,694 and 606,879 stock options, respectively, were outstanding. The effect of the shares that would be issued upon exercise of these options has been excluded from the calculation of diluted loss per share because those shares are anti-dilutive. (2) At March 31, 2017 and 2016, 349,430 and 305,031 additional shares of common stock, respectively, were issuable upon the settlement of outstanding restricted stock units. The effect of the shares that would be issued upon settlement of these restricted stock units has been excluded from the calculation of diluted loss per share because those shares are anti-dilutive. (3) At March 31, 2017, 334,505 performance-based restricted stock awards were outstanding. The effect of the shares that would be issued upon vesting of these awards has been excluded from the calculation of diluted loss per share because those shares are anti-dilutive. Unvested time-based restricted stock awards that contain nonforfeitable rights to dividends are participating securities and included in the computation of earnings per share pursuant to the two-class method. Under this method, earnings attributable to the Company are allocated between common stockholders and the participating awards, as if the awards were a second class of stock. During periods of net income, the calculation of earnings per share excludes the income attributable to participating securities in the numerator and the dilutive impact of these securities from the denominator. In the event of a net loss, undistributed earnings are not allocated to participating securities and the denominator excludes the dilutive impact of these securities as they do not share in the losses of the Company. During the three months and nine months ended March 31, 2017 and 2016, there were no undistributed earnings allocated to participating securities due to the net losses. |
Subsequent Event Subsequent Eve
Subsequent Event Subsequent Event | 9 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Event The Company is party to Steven Babyak v. Cardiovascular Systems, Inc., originally filed in the Superior Court of California, County of Los Angeles, on November 16, 2015. The plaintiff, a former Regional Sales Manager of the Company, made claims under California law relating to whistleblower retaliation; defamation; discrimination on the basis of association with protected group; harassment on the basis of sex in violation of FEHA; retaliation for exercising rights under FEHA; failure to prevent discrimination, harassment & retaliation in violation of FEHA; wrongful termination in violation of public policy; and violation of business & professions code. Following a jury trial that commenced on April 17, 2017, on April 24, 2017, the jury awarded the plaintiff $2,700 in compensatory damages with respect to his claims for whistleblower retaliation and wrongful termination in violation of public policy, and on April 25, 2017, the jury awarded the plaintiff $22,400 in punitive damages with respect to the same claims. The Company intends to vigorously challenge the verdict in the trial court and appeal. The Company has accrued $2,600 in the three months ended March 31, 2017 based on the estimate of the range of the loss that the Company believes is probable of occurring. However, it is reasonably possible that the ultimate loss, if the Company is not able to successfully challenge the verdict, could be materially different than the amount that the Company has recorded. The Company will continue to monitor the accrual associated with this matter each reporting period and make adjustments, if necessary, based on additional facts as they arise. The amounts are reflected in selling, general and administrative expenses on the Company's consolidated statement of operations. Additionally, as of March 31, 2017, the Company has recorded a receivable of $1,300 associated with its present assessment of the probable amount of insurance proceeds the Company would receive related to the claim, based on the accrued amount of loss referenced above. The Company estimates insurance receivables based on an analysis of its policies, including their exclusions, an assessment of the nature of each claim and remaining coverage, information from its insurance carrier, and the probable loss range referenced above. The Company then records an amount it has concluded is probable. Similar to the accrual pertaining to this matter, the Company will continue to assess the probable amount of insurance proceeds expected to be received in this case each reporting period and make adjustments, if necessary, based on additional facts as they arise. |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Interim Financial Statements | Interim Financial Statements The Company prepared the unaudited interim consolidated financial statements and related unaudited financial information in the footnotes in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. The year-end consolidated balance sheet was derived from the Company’s audited consolidated financial statements, but does not include all disclosures as required by GAAP. These interim consolidated financial statements reflect all adjustments consisting of normal recurring accruals, which, in the opinion of management, are necessary for a fair statement of the Company’s consolidated financial position, the results of its operations and its cash flows for the interim periods. These interim consolidated financial statements should be read in conjunction with the consolidated annual financial statements and the notes thereto included in the Form 10-K filed by the Company with the SEC on August 25, 2016. The nature of the Company’s business is such that the results of any interim period may not be indicative of the results to be expected for the entire year. |
Use of Estimates | Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Stock-Based Compensation | Stock-Based Compensation The Company has stock-based compensation plans, which include stock options, nonvested share awards, and an employee stock purchase plan. Fair value of option awards is determined using option-pricing models, fair value of nonvested share awards with market conditions is determined using the Monte Carlo simulation, and fair value of nonvested share awards that vest based upon performance or service conditions is determined by the closing market price of the Company's stock on the date of grant. Stock-based compensation expense is recognized ratably over the requisite performance or service period for the awards expected to vest. |
Revenue Recognition | Revenue Recognition The Company sells its products almost exclusively via direct shipment to hospitals or clinics. The Company recognizes revenue when all of the following criteria are met: persuasive evidence of an arrangement exists; delivery has occurred; the sales price is fixed or determinable; and collectability is reasonably assured. The Company records estimated sales returns, discounts and rebates as a reduction of net sales. Costs related to products delivered are recognized in the period revenue is recognized. Cost of goods sold consists primarily of raw materials, direct labor, and manufacturing overhead. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “Revenue From Contracts with Customers.” The guidance requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. The guidance also requires expanded disclosures relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required about customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. ASU 2014-09 was initially to be effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period, using one of two prescribed retrospective methods. Early adoption was not to be permitted. In August 2015, the FASB issued ASU 2015-14 to defer the effective date of ASU 2014-09 by one year and allow early adoption for all entities but not before the original public entity effective date. The guidance is effective for the Company on July 1, 2018. During 2016, the FASB also issued ASU 2016-08, "Principal versus Agent Considerations (Reporting Revenue Gross versus Net)"; ASU 2016-10, "Identifying Performance Obligations and Licensing"; ASU 2016-12, "Narrow-Scope Improvements and Practical Expedients", and ASU 2016-20, "Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers," which amend ASU No. 2014-09. ASU 2016-08 is not applicable to the Company. ASU 2016-10 clarifies how entities would determine whether promised goods or services are separately identifiable from other promises in a contract and, therefore, would be accounted for separately. The guidance would also allow entities to disregard goods or services that are immaterial in the context of a contract and provides an accounting policy election to account for shipping and handling activities as fulfillment costs rather than as additional promised services. ASU 2016-12 addressed implementation issues relative to transition (adding a practical expedient for contract modifications and clarifying what constitutes a completed contract when employing ASU 2014-09’s full or modified retrospective transition methods), collectability, noncash consideration, and the presentation of sales and other similar-type taxes (allowing entities to exclude sales-type taxes collected from transaction price). ASU 2016-20 makes certain technical corrections and provide additional guidance in the areas of disclosure of performance obligations, provisions for losses on certain types of contracts, scoping, and other areas. The Company is currently evaluating the potential impact and method of adoption of ASU 2014-09, as amended, on the Company's consolidated financial statements and related disclosures and are comparing current policies and practices to the requirements of the standard. In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern.” The guidance requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date of issuance of the entity's financial statements. The entity must also provide certain disclosures if there is substantial doubt about the entity's ability to continue as a going concern. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods thereafter. Early adoption is permitted. The guidance is effective for the Company as of June 30, 2017. The Company does not anticipate an impact on its financial statements upon adoption. In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory.” The guidance requires an entity to measure inventory within the scope of the ASU at the lower of cost and net realizable value. ASU 2015-11 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2016 and should be applied prospectively. Early adoption is permitted. The guidance is effective for the Company on July 1, 2017. The Company does not anticipate a material impact on its financial statements upon adoption. In November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes.” The guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. ASU 2015-17 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2016 and can be applied either prospectively or retrospectively. Early adoption is permitted. The guidance is effective for the Company on July 1, 2017. The Company does not anticipate a material impact on its financial statements upon adoption. In February 2016, the FASB issued ASU 2016-02, “Leases.” The guidance requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. ASU 2016-02 is effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods, and should be applied using a modified retrospective approach. Early adoption is permitted. The guidance is effective for the Company on July 1, 2019. The Company is currently evaluating the timing, method of adoption and impact of the new lease guidance on its financial statements. In March 2016, the FASB issued ASU 2016-09, “Stock Compensation.” The guidance simplifies several aspects related to the accounting for share-based payment transactions, including the accounting for income taxes, classification on the statement of cash flows, forfeitures, and statutory withholding requirements. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted and transition requirements vary based on the amendments adopted. The guidance is effective for the Company on July 1, 2017. The Company is currently evaluating the impact of the stock compensation guidance on its financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Measurement of Credit Losses on Financial Instruments,” which revises guidance for the accounting for credit losses on financial instruments within its scope. The new standard introduces an approach, based on expected losses, to estimate credit losses on certain types of financial instruments and modifies the impairment model for available-for-sale debt securities. The new approach to estimating credit losses (referred to as the current expected credit losses model) applies to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans, held-to-maturity debt securities, net investments in leases and off-balance-sheet credit exposures. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted and should be applied as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The guidance is effective for the Company on July 1, 2020. The Company does not anticipate a material impact on its financial statements upon adoption. |
Selected Consolidated Financi17
Selected Consolidated Financial Statement Information (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable consists of the following: March 31, June 30, 2017 2016 Accounts receivable $ 28,751 $ 23,840 Less: Allowance for doubtful accounts (874 ) (712 ) Accounts receivable, net $ 27,877 $ 23,128 |
Schedule of Inventory | Inventories consist of the following: March 31, June 30, 2017 2016 Raw materials $ 7,419 $ 7,439 Work in process 1,021 1,142 Finished goods 8,165 8,859 Inventories $ 16,605 $ 17,440 |
Schedule of Property and Equipment | Property and equipment consists of the following: March 31, June 30, 2017 2016 Land $ 500 $ 500 Building 22,420 22,575 Equipment 16,194 14,141 Furniture 2,708 2,709 Leasehold improvements 86 86 Construction in progress 310 1,533 42,218 41,544 Less: Accumulated depreciation (12,005 ) (9,073 ) Property and equipment, net $ 30,213 $ 32,471 |
Schedule of Accrued Expenses | Accrued expenses consist of the following: March 31, June 30, 2017 2016 Salaries and bonus $ 5,890 $ 4,305 Commissions 7,590 7,788 Accrued vacation 3,430 3,498 Accrued excise, sales and other taxes 3,507 3,372 Accrued litigation 2,600 — Legal settlement 1,806 3,872 Warranty reserve 1,545 145 Clinical studies 565 1,757 Restructuring 307 1,337 Other accrued expenses 2,597 919 Total Accrued expenses $ 29,837 $ 26,993 |
Schedule of Restructuring Accrual | The following table provides information regarding the restructuring accrual: Severance Restructuring accrual at June 30, 2016 $ 1,521 Cash payments (1,189 ) Restructuring accrual at March 31, 2017 $ 332 |
Schedule of Other Liabilities | Other Liabilities Other non-current liabilities consist of the following: March 31, June 30, 2017 2016 Legal settlement 2,771 4,128 Deferred compensation 379 684 Deferred grant incentive 476 486 Accrued severance 44 610 Other liabilities 82 102 Total Other liabilities $ 3,752 $ 6,010 |
Deferred Compensation Plan Defe
Deferred Compensation Plan Deferred Compensation Plan (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Investments | As of March 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Mutual funds $ 644 $ 97 $ — $ 741 Total short-term investments $ 644 $ 97 $ — $ 741 As of June 30, 2016 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Mutual funds $ 644 $ 40 $ — $ 684 Total short-term investments $ 644 $ 40 $ — $ 684 |
Schedule of Available-for-sale Marketable Securities at Fair Value on Recurring Basis | The following table provides information by level for the Company's available-for-sale marketable securities that were measured at fair value on a recurring basis: Fair Value Measurements as of March 31, 2017 Using Inputs Considered as Fair Value Level 1 Level 2 Level 3 Mutual funds $ 741 $ 479 $ 262 $ — Total short-term investments $ 741 $ 479 $ 262 $ — Fair Value Measurements as of June 30, 2016 Using Inputs Considered as Fair Value Level 1 Level 2 Level 3 Mutual funds $ 684 $ 425 $ 259 $ — Total short-term investments $ 684 $ 425 $ 259 $ — |
Stock Options and Restricted 19
Stock Options and Restricted Stock Awards (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Share-based Arrangements with Employees and Nonemployees [Abstract] | |
Stock Option Activity | Stock option activity for the nine months ended March 31, 2017 is as follows: Number of Options (a) Weighted Average Exercise Price Options outstanding at June 30, 2016 606,879 $ 10.14 Options exercised (490,804 ) $ 10.40 Options expired (9,381 ) $ 8.83 Options outstanding at March 31, 2017 106,694 $ 9.10 (a) Includes the effect of options granted, exercised, forfeited or expired from the 2003 Plan and 2007 Plan, and options granted outside such plans. |
Restricted Stock Award Activity | Restricted stock award activity for the nine months ended March 31, 2017 is as follows: Number of Shares Weighted Average Fair Value Outstanding at June 30, 2016 957,689 $ 22.99 Granted 258,346 $ 21.80 Forfeited (390,637 ) $ 12.34 Vested (289,584 ) $ 24.14 Outstanding at March 31, 2017 535,814 $ 21.44 |
Performance Based RSA Activity | Performance-based restricted stock award activity for the nine months ended March 31, 2017 is as follows: Number of Shares Weighted Average Fair Value Outstanding at June 30, 2016 — $ — Granted 336,826 $ 11.97 Forfeited (2,321 ) $ 11.97 Vested — $ — Outstanding at March 31, 2017 334,505 $ 11.97 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments for Operating Leases | Future minimum lease payments under the agreements as of March 31, 2017 are as follows: Three months ended June 30, 2017 $ 149 Fiscal 2018 524 Fiscal 2019 473 Fiscal 2020 353 $ 1,499 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerators and Denominators Used in Basic and Diluted Earnings Per Common Share Computations | The following table presents a reconciliation of the numerators and denominators used in the basic and diluted earnings per common share computations (in thousands except share and per share amounts): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Numerator Net loss $ (1,749 ) $ (22,716 ) $ (2,564 ) $ (51,140 ) Denominator Weighted average common shares outstanding – basic 32,650,974 32,711,341 32,232,409 32,491,271 Effect of dilutive stock options (1) — — — — Effect of dilutive restricted stock units (2) — — — — Effect of performance-based restricted stock awards (3) — — — — Weighted average common shares outstanding – diluted 32,650,974 32,711,341 32,232,409 32,491,271 Earnings per common share – basic $ (0.05 ) $ (0.69 ) $ (0.08 ) $ (1.57 ) Earnings per common share – diluted $ (0.05 ) $ (0.69 ) $ (0.08 ) $ (1.57 ) (1) At March 31, 2017 and 2016, 106,694 and 606,879 stock options, respectively, were outstanding. The effect of the shares that would be issued upon exercise of these options has been excluded from the calculation of diluted loss per share because those shares are anti-dilutive. (2) At March 31, 2017 and 2016, 349,430 and 305,031 additional shares of common stock, respectively, were issuable upon the settlement of outstanding restricted stock units. The effect of the shares that would be issued upon settlement of these restricted stock units has been excluded from the calculation of diluted loss per share because those shares are anti-dilutive. (3) At March 31, 2017, 334,505 performance-based restricted stock awards were outstanding. The effect of the shares that would be issued upon vesting of these awards has been excluded from the calculation of diluted loss per share because those shares are anti-dilutive. Unvested time-based restricted stock awards that contain nonforfeitable rights to dividends are participating securities and included in the computation of earnings per share pursuant to the two-class method. Under this method, earnings attributable to the Company are allocated between common stockholders and the participating awards, as if the awards were a second class of stock. During periods of net income, the calculation of earnings per share excludes the income attributable to participating securities in the numerator and the dilutive impact of these securities from the denominator. In the event of a net loss, undistributed earnings are not allocated to participating securities and the denominator excludes the dilutive impact of these securities as they do not share in the losses of the Company. During the three months and nine months ended March 31, 2017 and 2016, there were no undistributed earnings allocated to participating securities due to the net losses. |
Selected Consolidated Financi22
Selected Consolidated Financial Statement Information - Accounts Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Accounts Receivable | ||
Accounts receivable | $ 28,751 | $ 23,840 |
Less: Allowance for doubtful accounts | (874) | (712) |
Accounts receivable, net | $ 27,877 | $ 23,128 |
Selected Consolidated Financi23
Selected Consolidated Financial Statement Information - Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Inventories | ||
Raw materials | $ 7,419 | $ 7,439 |
Work in process | 1,021 | 1,142 |
Finished goods | 8,165 | 8,859 |
Inventories | $ 16,605 | $ 17,440 |
Selected Consolidated Financi24
Selected Consolidated Financial Statement Information - Property and Equipment, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | Jun. 30, 2016 | |
Property and Equipment | ||||
Land | $ 500 | $ 500 | $ 500 | |
Building | 22,420 | 22,420 | 22,575 | |
Equipment | 16,194 | 16,194 | 14,141 | |
Furniture | 2,708 | 2,708 | 2,709 | |
Leasehold improvements | 86 | 86 | 86 | |
Construction in progress | 310 | 310 | 1,533 | |
Property and equipment, gross | 42,218 | 42,218 | 41,544 | |
Less: Accumulated depreciation | (12,005) | (12,005) | (9,073) | |
Property and equipment, net | 30,213 | 30,213 | $ 32,471 | |
Facility Purchase Price | 21,500 | 21,500 | ||
Net Proceeds on Sale of the Facility | 20,944 | 20,944 | ||
Transaction costs | $ 556 | |||
Loss on disposal of property and equipment | $ (158) | $ (8) |
Selected Consolidated Financi25
Selected Consolidated Financial Statement Information - Accrued Expenses (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2017USD ($) | Sep. 30, 2016USD ($) | Mar. 31, 2017USD ($) | Jun. 30, 2016USD ($) | |
Quarterly Financial Information Disclosure [Abstract] | ||||
Units Associated with Recall | 900 | 900 | ||
Accrued Expenses | ||||
Salaries and bonus | $ 5,890 | $ 5,890 | $ 4,305 | |
Commissions | 7,590 | 7,590 | 7,788 | |
Accrued vacation | 3,430 | 3,430 | 3,498 | |
Accrued excise, sales and other taxes | 3,507 | 3,507 | 3,372 | |
Accrued litigation | 2,600 | 2,600 | 0 | |
Legal Settlement, Current | 1,806 | 1,806 | 3,872 | |
Warranty reserve | 1,545 | 1,545 | 145 | |
Clinical studies | 565 | 565 | 1,757 | |
Restructuring | 307 | 307 | 1,337 | |
Other accrued expenses | 2,597 | 2,597 | 919 | |
Total Accrued expenses | 29,837 | 29,837 | 26,993 | |
Litigation Settlement, Amount | $ 8,000 | |||
Payments for Legal Settlements | $ 3,000 | |||
Settlement Payable in Installments | 5,000 | $ 5,000 | ||
Litigation Settlement Interest, Percentage | 1.80% | |||
Litigation Settlement, Number of Quarterly Installment Payment | 11 | |||
Inventory Recall Expense | 1,535 | |||
Recall Expenses, Recorded in Cost of Sales | 1,378 | |||
Recall Expense, Consulting | 60 | |||
Recall Expense, Inventory Reserve | $ 97 |
Selected Consolidated Financi26
Selected Consolidated Financial Statement Information - Restructuring and CEO Departure (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Jun. 30, 2016 | |
Severance Costs [Line Items] | |||||
Restructuring Reserve | $ 332 | $ 332 | $ 1,521 | ||
Payments for Restructuring | (1,189) | ||||
Restructuring expense | 0 | $ 2,376 | 0 | $ 2,376 | 2,364 |
Restructuring accrual | 307 | 307 | 1,337 | ||
Restructuring accrual, non-current | 25 | $ 25 | |||
Debt Disclosure [Text Block] | Debt Revolving Credit Facility On March 31, 2017, the Company entered into a Loan and Security Agreement (the “Loan Agreement”) with Silicon Valley Bank (“SVB”). The Loan Agreement provides for a senior, secured revolving credit facility (the “Revolver”) of $40,000 (the “Maximum Dollar Amount”). Advances under the Revolver may be made from time to time up to the Maximum Dollar Amount, subject to certain borrowing limitations. The Revolver has a maturity date of March 31, 2020 and bears interest at a floating per annum rate equal to the Wall Street Journal prime rate, less 0.25% . Interest on borrowings is due monthly and the principal balance is due at maturity. Borrowings up to $10,000 are available on a non-formula basis. Borrowings above $10,000 are based on (i) 85% of eligible domestic accounts receivable, and (ii) the lesser of 50% of eligible inventory or $5,000 , subject to adjustment as defined in Loan Agreement. Upon the Revolver’s maturity, any outstanding principal balance, unpaid accrued interest, and all other obligations under the Revolver will be due and payable. The Company will incur a fee equal to 1% of the Maximum Dollar Amount upon termination of the Loan Agreement or the Revolver for any reason prior to the maturity date, unless refinanced with SVB. The Company’s obligations under the Loan Agreement are secured by certain of the Company’s assets, including, among other things, accounts receivable, deposit accounts, inventory, equipment, general intangibles and records pertaining to the foregoing. The collateral does not include the Company’s intellectual property, but the Company has agreed not to encumber its intellectual property without the consent of SVB. The Loan Agreement contains customary covenants limiting the Company’s ability to, among other things, incur debt or liens, make certain investments and loans, enter into transactions with affiliates, undergo certain fundamental changes, dispose of assets, or change the nature of its business. In addition, the Loan Agreement contains financial covenants requiring the Company to maintain, at all times when any amounts are outstanding under the Revolver, either (i) minimum unrestricted cash at SVB and unused availability on the Revolver of at least $10,000 or (ii) minimum trailing three-month Adjusted EBITDA of $1,000 . If the Company does not comply with the various covenants under the Loan Agreement, the interest rate on outstanding amounts will increase by 5% and SVB may, subject to various customary cure rights, decline to provide additional advances under the Revolver, require the immediate payment of all amounts outstanding under the Revolver, and foreclose on all collateral. Under the Loan Agreement, the Company paid SVB a non-refundable commitment fee of $80 , which will be amortized to interest expense over the term of the Loan Agreement. The Company is required to pay a fee equal to 0.35% per annum on the unused portion of the Revolver, payable quarterly in arrears. SVB’s obligations to advance funds under the Revolver are subject to an initial collateral examination to be completed within 90 days of the effective date of the Loan Agreement. The Company is not obligated to draw any funds under the Revolver and no amounts are outstanding as of March 31, 2017 . Financing Obligation In connection with the sale of the Facility, the Company entered into an agreement to lease the Facility. The Lease Agreement has an initial term of fifteen years, with four consecutive renewal options of five years each at the Company's option, with a base annual rent in the first year of $1,638 and annual escalations of 3% thereafter. Rent during subsequent renewal terms will be at the then fair market rental rate. As the lease terms resulted in a capital lease classification, the Company accounted for the sale and leaseback of the Facility as a financing transaction where the assets remain on the Company's balance sheet and a financing obligation was recorded for $20,944 . As lease payments are made, they will be allocated between interest expense and a reduction of the financing obligation, resulting in a value of the financing obligation that is equivalent to the net book value of the assets at the end of the lease term. The effective interest rate is 7.97% . At the end of the lease (including any renewal option terms), the Company will remove the assets and financing obligation from its balance sheet. Future payments under the initial term of the Lease Agreement as of March 31, 2017 are as follows: Three months ended June 30, 2017 $ 273 2018 1,650 2019 1,699 2020 1,750 2021 1,803 Thereafter 23,144 $ 30,319 | ||||
Chief Executive Officer | |||||
Severance Costs [Line Items] | |||||
Total expense related to the CEO departure | $ 1,507 | ||||
Accrued severance, non-current | 19 | $ 19 | |||
Accrued severance | $ 570 | $ 570 |
Selected Consolidated Financi27
Selected Consolidated Financial Statement Information - Other Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Other Liabilities | ||
Legal settlement | $ 2,771 | $ 4,128 |
Deferred compensation | 379 | 684 |
Deferred Grant Incentive | 476 | 486 |
Employee-related Liabilities, Noncurrent | 44 | 610 |
Other liabilities | 82 | 102 |
Total Other liabilities | $ 3,752 | $ 6,010 |
Selected Consolidated Financi28
Selected Consolidated Financial Statement Information - Deferred Revenue (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Other Liabilities Disclosure [Abstract] | |
Deferred Revenue | $ 10,000 |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility (Details) - Silicon Valley Bank [Member] - Revolving Credit Facility [Member] | 3 Months Ended | 9 Months Ended |
Mar. 31, 2017USD ($) | Mar. 31, 2017USD ($) | |
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 40,000,000 | $ 40,000,000 |
Line of Credit Facility, Expiration Date | Mar. 31, 2020 | |
Percent Reduction to Prime Interest Rate | 0.25% | |
Borrowings Available On A NonFormula Basis | $ 10,000,000 | $ 10,000,000 |
Percentage of Eligible Accounts Receivable | 85.00% | 85.00% |
Percent of Eligible Inventory | 50.00% | |
Maximum Eligible Inventory Value | $ 5,000,000 | |
Early Termination Fee | 1.00% | 1.00% |
Covenant, Unused Availability | $ 10,000,000 | |
Covenant, Adjusted EBITDA | $ 1,000,000 | |
Interest Rate Increase For Noncompliance | 5.00% | |
Line of Credit Facility, Commitment Fee Amount | $ 80,000 | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.35% | |
Number of Days for Collateral Examination | 90 | |
Line of Credit Facility, Fair Value of Amount Outstanding | $ 0 | $ 0 |
Debt - Financing Obligation (De
Debt - Financing Obligation (Details) - Capital Lease Obligations [Member] $ in Thousands | Mar. 31, 2017USD ($) |
Debt Instrument [Line Items] | |
Base Annual Rent Under Facility Lease | $ 1,638 |
Annual Rent Escalation | 3.00% |
Financing Obligation | $ 20,944 |
Effective Interest Rate | 7.97% |
Capital Leases, Future Minimum Payments, Remainder of Fiscal Year | $ 273 |
Capital Leases, Future Minimum Payments Due in Two Years | 1,650 |
Capital Leases, Future Minimum Payments Due in Three Years | 1,699 |
Capital Leases, Future Minimum Payments Due in Four Years | 1,750 |
Capital Leases, Future Minimum Payments Due in Five Years | 1,803 |
Capital Leases, Future Minimum Payments Due Thereafter | 23,144 |
Capital Leases, Future Minimum Payments Due | $ 30,319 |
Deferred Compensation Plan - In
Deferred Compensation Plan - Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | $ 644 | $ 644 |
Unrealized Gains | 97 | 40 |
Unrealized Losses | 0 | 0 |
Fair Value | 741 | 684 |
Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Amortized Cost | 644 | 644 |
Unrealized Gains | 97 | 40 |
Unrealized Losses | 0 | 0 |
Fair Value | $ 741 | $ 684 |
Deferred Compensation Plan - Av
Deferred Compensation Plan - Available-for-sale Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Jun. 30, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | $ 741 | $ 684 |
Mutual funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 741 | 684 |
Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 741 | 684 |
Recurring | Mutual funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 741 | 684 |
Recurring | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 479 | 425 |
Recurring | Level 1 | Mutual funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 479 | 425 |
Recurring | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 262 | 259 |
Recurring | Level 2 | Mutual funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 262 | 259 |
Recurring | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 0 | 0 |
Recurring | Level 3 | Mutual funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | $ 0 | $ 0 |
Deferred Compensation Plan - Na
Deferred Compensation Plan - Narrative (Details) - USD ($) | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Jun. 30, 2016 | |
Deferred Compensation Arrangements [Abstract] | |||
Deferred Compensation Liability, Current | $ 362,000 | ||
Deferred compensation | 379,000 | $ 684,000 | |
Purchases of available-for-sale securities | 0 | $ 37,000 | |
Proceeds from Sale of Available-for-sale Securities | 0 | 0 | |
Other-than-temporary impairments | 0 | $ 0 | |
Transfers of assets between Level 1 and Level 2 | $ 0 | ||
Maximum | |||
Deferred Compensation Arrangements [Abstract] | |||
Deferred compensation plan, maximum percentage of employees' base salary | 100.00% |
Stock Options and Restricted 34
Stock Options and Restricted Stock Awards - Narrative (Details) - USD ($) $ in Thousands | Aug. 10, 2015 | Sep. 30, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise period for employee's vested options | 90 days | |
Restricted Stock | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 1 year | |
Restricted Stock | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant Date Fair Value of Restricted Stock Awards, Market Conditions | $ 4,032 | |
Performance Shares | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate shares based on thresholds measuring total shareholder return | 336,826 |
Stock Options and Restricted 35
Stock Options and Restricted Stock Awards - Stock Option Activity (Details) | 9 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Number of Options | |
Options outstanding, balance at beginning of period (in shares) | shares | 606,879 |
Options exercised (in shares) | shares | (490,804) |
Options expired (in shares) | shares | (9,381) |
Options outstanding, balance at end of period (in shares) | shares | 106,694 |
Weighted Average Exercise Price | |
Options outstanding at beginning of period (per share) | $ / shares | $ 10.14 |
Options exercised (per share) | $ / shares | 10.40 |
Options expired (per share) | $ / shares | 8.83 |
Options outstanding at end of period (per share) | $ / shares | $ 9.10 |
Stock Options and Restricted 36
Stock Options and Restricted Stock Awards - Restricted Stock Award Activity (Details) | 9 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Restricted Stock | |
Number of Shares | |
Awards outstanding, balance at beginning of period (in shares) | shares | 957,689 |
Awards granted (in shares) | shares | 258,346 |
Awards forfeited (in shares) | shares | (390,637) |
Awards vested (in shares) | shares | (289,584) |
Awards outstanding, balance at end of period (in shares) | shares | 535,814 |
Weighted Average Fair Value | |
Awards outstanding, balance at beginning of period (per share) | $ / shares | $ 22.99 |
Awards granted (per share) | $ / shares | 21.80 |
Awards forfeited (per share) | $ / shares | 12.34 |
Awards vested (per share) | $ / shares | 24.14 |
Awards outstanding, balance at end of period (per share) | $ / shares | $ 21.44 |
Performance Shares | |
Number of Shares | |
Awards outstanding, balance at beginning of period (in shares) | shares | 0 |
Awards granted (in shares) | shares | 336,826 |
Awards forfeited (in shares) | shares | (2,321) |
Awards vested (in shares) | shares | 0 |
Awards outstanding, balance at end of period (in shares) | shares | 334,505 |
Weighted Average Fair Value | |
Awards outstanding, balance at beginning of period (per share) | $ / shares | $ 0 |
Awards granted (per share) | $ / shares | 11.97 |
Awards forfeited (per share) | $ / shares | 11.97 |
Awards vested (per share) | $ / shares | 0 |
Awards outstanding, balance at end of period (per share) | $ / shares | $ 11.97 |
Commitment and Contingencies (D
Commitment and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017 | Sep. 30, 2016 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||||
Rental expense | $ 164 | $ 140 | $ 485 | $ 781 | |
Lease expiration date | Mar. 31, 2020 | ||||
Future Minimum Lease Payments: | |||||
Three months ended June 30, 2017 | 149 | 149 | |||
Fiscal 2,018 | 524 | 524 | |||
Fiscal 2,019 | 473 | 473 | |||
Fiscal 2,020 | 353 | 353 | |||
Future minimum lease payments | $ 1,499 | $ 1,499 |
Earnings Per Share - EPS Reconc
Earnings Per Share - EPS Reconciliation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Numerator | ||||
Net loss | $ (1,749) | $ (22,716) | $ (2,564) | $ (51,140) |
Denominator | ||||
Weighted Average Number of Shares Outstanding, Basic and Diluted | 32,650,974 | 32,711,341 | 32,232,409 | 32,491,271 |
Weighted average common shares outstanding – diluted | 32,650,974 | 32,711,341 | 32,232,409 | 32,491,271 |
Income (loss) per common share, basic | $ (0.05) | $ (0.69) | $ (0.08) | $ (1.57) |
Income (loss) per common share, diluted | $ (0.05) | $ (0.69) | $ (0.08) | $ (1.57) |
Stock Options | ||||
Denominator | ||||
Effect of dilutive share-based payment arrangements (in shares) | 0 | 0 | 0 | 0 |
Restricted Stock Units | ||||
Denominator | ||||
Effect of dilutive share-based payment arrangements (in shares) | 0 | 0 | 0 | 0 |
Performance Shares | ||||
Denominator | ||||
Effect of dilutive share-based payment arrangements (in shares) | 0 | 0 | 0 | 0 |
Earnings Per Share - EPS Reco39
Earnings Per Share - EPS Reconciliation (Additional Information) (Details) - shares | 9 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Stock Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares excluded from the calculation (in shares) | 106,694 | 606,879 |
Restricted Stock Units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares excluded from the calculation (in shares) | 349,430 | 305,031 |
Performance Shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares excluded from the calculation (in shares) | 334,505 |
Subsequent Event Subsequent E40
Subsequent Event Subsequent Event (Details) - Babyak Case [Member] $ in Thousands | Mar. 31, 2017USD ($) |
Subsequent Event [Line Items] | |
Compensatory Damages | $ 2,700 |
Punitive Damages | 22,400 |
Estimated Litigation Liability | 2,600 |
Insurance Settlements Receivable, Current | $ 1,300 |