Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Sep. 19, 2014 | Dec. 31, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Jun-14 | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'RSSS | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 17,862,742 | ' |
Entity Registrant Name | 'Research Solutions, Inc. | ' | ' |
Entity Central Index Key | '0001386301 | ' | ' |
Current Fiscal Year End Date | '--06-30 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $17,045,764 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Assets | ' | ' |
Cash and cash equivalents | $2,075,926 | $1,699,969 |
Accounts receivable: | ' | ' |
Trade receivables, net of allowance of $321,698 and $211,743, respectively | 4,741,672 | 4,966,717 |
Due from factor | 116,762 | 165,971 |
Inventory | 192,245 | 171,682 |
Prepaid expenses and other current assets | 317,263 | 327,532 |
Prepaid royalties | 552,689 | 351,852 |
Total current assets | 7,996,557 | 7,683,723 |
Other assets: | ' | ' |
Property and equipment, net of accumulated depreciation of $1,511,229 and $1,094,953, respectively | 527,374 | 831,231 |
Intangible assets, net of accumulated amortization of $430,704 and $308,245, respectively | 55,235 | 123,482 |
Deposits and other assets | 463,461 | 286,073 |
Total assets | 9,042,627 | 8,924,509 |
Current liabilities: | ' | ' |
Accounts payable and accrued expenses | 8,710,072 | 7,530,034 |
Capital lease obligations, current | 324,802 | 221,461 |
Notes payable, current | 11,601 | 55,293 |
Due to factor | 0 | 246,221 |
Deferred revenue | 158,359 | 53,216 |
Other liability | 143,304 | 0 |
Total current liabilities | 9,348,138 | 8,106,225 |
Long term liabilities: | ' | ' |
Notes payable, long term | 0 | 11,059 |
Capital lease obligations, long term | 113,415 | 493,045 |
Total liabilities | 9,461,553 | 8,610,329 |
Commitments and contingencies | ' | ' |
Stockholders' equity (deficiency): | ' | ' |
Preferred stock; $0.001 par value; 20,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock; $0.001 par value; 100,000,000 shares authorized; 17,600,242 and 16,970,465 shares issued and outstanding, respectively | 17,600 | 16,970 |
Additional paid-in capital | 15,406,033 | 14,213,443 |
Accumulated deficit | -15,858,656 | -13,992,238 |
Accumulated other comprehensive income | 16,097 | 76,005 |
Total stockholders' equity (deficiency) | -418,926 | 314,180 |
Total liabilities and stockholders' equity (deficiency) | $9,042,627 | $8,924,509 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets [Parenthetical] (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Trade receivables, allowance | $321,698 | $211,743 |
Property and equipment, accumulated depreciation | 1,511,229 | 1,094,953 |
Intangible Assets, accumulated amortization | $430,704 | $308,245 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 17,600,242 | 16,970,465 |
Common stock, shares outstanding | 17,600,242 | 16,970,465 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Other Comprehensive Income (Loss) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Revenue | $36,550,910 | $45,498,526 |
Cost of revenue | 28,204,613 | 35,948,380 |
Gross profit | 8,346,297 | 9,550,146 |
Operating expenses: | ' | ' |
Selling, general and administrative | 9,617,453 | 8,839,428 |
Depreciation and amortization | 507,678 | 590,922 |
Loss on facility sublease | 0 | 233,015 |
Gain on sale of fixed assets | 0 | -476,904 |
Total operating expenses | 10,125,131 | 9,186,461 |
Income (loss) from operations | -1,778,834 | 363,685 |
Other income (expenses): | ' | ' |
Interest expense | -55,923 | -89,411 |
Other income (expense) | -15,562 | -84,023 |
Total other expense | -71,485 | -173,434 |
Income (loss) before provision for income taxes | -1,850,319 | 190,251 |
Benefit from (provision for) income taxes | -16,099 | 1,671 |
Net income (loss) | -1,866,418 | 191,922 |
Other comprehensive income (loss): | ' | ' |
Foreign currency translation | -59,908 | 15,351 |
Comprehensive income (loss) | ($1,926,326) | $207,273 |
Net income (loss) per common share: | ' | ' |
Basic | ($0.11) | $0.01 |
Diluted | ($0.11) | $0.01 |
Weighted average shares outstanding: | ' | ' |
Basic | 17,230,311 | 17,123,460 |
Diluted | 17,230,311 | 17,262,652 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (Deficiency) (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance at Jun. 30, 2012 | ($434,564) | $17,069 | $13,671,873 | ($14,184,160) | $60,654 |
Balance (in shares) at Jun. 30, 2012 | ' | 17,069,437 | ' | ' | ' |
Fair value of vested stock options | 323,776 | 0 | 323,776 | 0 | 0 |
Common stock issued upon exercise of stock options | 0 | 22 | -22 | 0 | 0 |
Common stock issued upon exercise of stock options (in shares) | ' | 21,766 | ' | ' | ' |
Fair value of common stock issued for customer list | 154,908 | 182 | 154,726 | 0 | 0 |
Fair value of common stock issued for customer list (in shares) | ' | 182,244 | ' | ' | ' |
Common stock retired | 0 | -337 | 337 | 0 | 0 |
Common stock retired (In shares) | ' | -336,921 | ' | ' | ' |
Fair value of common stock issued for services | 62,787 | 34 | 62,753 | 0 | 0 |
Fair value of common stock issued for services (in shares) | ' | 33,939 | ' | ' | ' |
Net income (loss) for the period | 191,922 | 0 | 0 | 191,922 | 0 |
Foreign currency translation | 15,351 | 0 | 0 | 0 | 15,351 |
Balance at Jun. 30, 2013 | 314,180 | 16,970 | 14,213,443 | -13,992,238 | 76,005 |
Balance (in shares) at Jun. 30, 2013 | ' | 16,970,465 | ' | ' | ' |
Fair value of vested stock options | 247,385 | 0 | 247,385 | 0 | 0 |
Fair value of common stock issued for services | 107,835 | 211 | 107,624 | 0 | 0 |
Fair value of common stock issued for services (in shares) | ' | 210,777 | ' | ' | ' |
Common stock issued upon exercise of warrants | 838,000 | 419 | 837,581 | 0 | 0 |
Common stock issued upon exercise of warrants (in shares) | ' | 419,000 | ' | ' | ' |
Net income (loss) for the period | -1,866,418 | 0 | 0 | -1,866,418 | 0 |
Foreign currency translation | -59,908 | 0 | 0 | 0 | -59,908 |
Balance at Jun. 30, 2014 | ($418,926) | $17,600 | $15,406,033 | ($15,858,656) | $16,097 |
Balance (in shares) at Jun. 30, 2014 | ' | 17,600,242 | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Cash flow from operating activities: | ' | ' |
Net income (loss) | ($1,866,418) | $191,922 |
Adjustment to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization | 507,678 | 617,898 |
Fair value of vested stock options | 247,385 | 323,776 |
Fair value of common stock issued for services | 107,835 | 62,787 |
Gain on sale of fixed assets | 0 | -476,904 |
Loss on facility sublease | 0 | 233,015 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 225,045 | 1,132,754 |
Inventory | -20,563 | 191,959 |
Due from factor | 49,209 | 31,068 |
Prepaid expenses and other current assets | 10,269 | -152,309 |
Prepaid royalties | -200,837 | 63,487 |
Deposits and other assets | -177,388 | -41,871 |
Accounts payable and accrued expenses | 1,180,038 | -2,257,735 |
Deferred revenue | 105,143 | -15,685 |
Other liability | 143,304 | 0 |
Net cash provided by (used in) operating activities | 310,700 | -95,838 |
Cash flow from investing activities: | ' | ' |
Purchase of property and equipment | -190,270 | -101,028 |
Purchase of intangible assets | -54,212 | -21,526 |
Proceeds from sale of fixed assets | 143,304 | 573,574 |
Net cash provided by (used in) investing activities | -101,178 | 451,020 |
Cash flow from financing activities: | ' | ' |
Advances (payments) to factor | -246,221 | -10,415 |
Payment of notes payable | -54,751 | -40,552 |
Payment of capital lease obligations | -276,289 | -738,783 |
Advances (payments) under line of credit | 0 | -1,000,000 |
Issuance of shares upon exercise of warrants for cash | 838,000 | 0 |
Net cash provided by (used in) financing activities | 260,739 | -1,789,750 |
Effect of exchange rate changes | -94,304 | -16,441 |
Net increase (decrease) in cash and cash equivalents | 375,957 | -1,451,009 |
Cash and cash equivalents, beginning of period | 1,699,969 | 3,150,978 |
Cash and cash equivalents, end of period | 2,075,926 | 1,699,969 |
Supplemental disclosures of cash flow information: | ' | ' |
Cash paid for income taxes | 16,099 | -1,671 |
Cash paid for interest | 55,923 | 89,411 |
Supplemental disclosures of non-cash investing and financing activities: | ' | ' |
Acquisition of customer list through the issuance of common shares | $0 | $154,908 |
Organization_Nature_of_Busines
Organization, Nature of Business and Basis of Presentation | 12 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | ' |
Organization, Nature of Business and Basis of Presentation | ' |
Note 1. Organization, Nature of Business and Basis of Presentation | |
Organization | |
Research Solutions, Inc. (the “Company,” “Research Solutions,” “we,” “us” or “our”) was incorporated in the State of Nevada on November 2, 2006. On March 4, 2013, we consummated a merger with DYSC Subsidiary Corporation, our wholly-owned subsidiary, pursuant to which we, in connection with such merger, amended our Articles of Incorporation to change our name to Research Solutions, Inc. (formerly Derycz Scientific, Inc.). Research Solutions, Inc. is a publicly traded holding company with three wholly owned subsidiaries at June 30, 2014: Reprints Desk, Inc., a Delaware corporation (“Reprints Desk”); Reprints Desk Latin America S. de R.L. de C.V, an entity organized under the laws of Mexico (“Reprints Desk Latin America”); and Techniques Appliquées aux Arts Graphiques, S.p.A. (“TAAG”), an entity organized under the laws of France. | |
On August 18, 2014 the Board of Directors of the Company authorized management to commit to a plan to sell TAAG immediately at a reasonable price in relation to its current fair value, and in the event such sale is not consummated by September 10, 2014, that management proceed with an insolvency filing by TAAG under French law. Accordingly effective August 18, 2014 the operations of TAAG will be classified as discontinued operations. On September 15, 2014, the French Tribunal de Commerce appointed an Administrator for TAAG following a declaration of insolvency by our legal representative. As a result, effective September 15, 2014, the Company relinquished control of TAAG to the Tribunal and TAAG ceased to be our subsidiary and will be deconsolidated from our financial statements. In accordance with consolidation guidance we will derecognize the assets, liabilities and other comprehensive income of TAAG with a resulting gain on deconsolidation of approximately $1,000,000 recorded on our consolidated statements of operations on September 15, 2014. In addition, comparative information for prior periods that is presented in future financial statements will be restated to segregate the assets, liabilities, revenue, expenses, and cash flows related to TAAG as discontinued operations (see Note 12). | |
Nature of Business | |
We provide research solutions that facilitate the flow of information from the publishers of scientific, technical, and medical (“STM”) content to enterprise customers in life science and other research intensive organizations around the world. We provide customers with access to hundreds of thousands of newly published articles each year in addition to the tens of millions of existing articles that have been published in the past, helping them to identify the most useful and relevant content for their activities. In addition to serving end users of content, we also serve STM publishers by facilitating compliance with applicable copyright laws. We have developed proprietary software and Internet-based interfaces that allow customers to find, electronically receive and legally use the content that is critical to their research. | |
At June 30, 2014, we have two reportable diverse geographical concentrations: North American Operations, which consists of Reprints Desk and Reprints Desk Latin America, and France, which consists of TAAG. | |
At June 30, 2014, we provide three types of services to our customers: Article Galaxy, Reprints and ePrints and Printing and Logistics. | |
Article Galaxy | |
Researchers and regulatory personnel in life science and other research intensive organizations generally require single copies of published STM journal articles for use in their research activities. They place orders with us for the articles they need and we source and electronically deliver the requested content to them generally in under an hour. This service is known in the industry as single article delivery or document delivery. We also obtain the necessary permissions from the content publisher so that our customer’s use complies with applicable copyright laws. We have arrangements with numerous content publishers that allow us to distribute their content. The majority of these publishers provide us with electronic access to their content, which allows us to electronically deliver single articles to our customers often in a matter of minutes. Even though single article delivery services are charged on a transactional basis, customer order volume tends to be consistent from month to month in part due to consistent orders of larger customers that require the implementation of our services into their work flow, subject to fluctuations due to the addition or loss of customers. | |
We deliver the aforementioned services through our Article Galaxy journal article platform (“Article Galaxy”), which consists of proprietary software and Internet-based interfaces that allow customers to initiate orders, manage transactions, obtain reporting, automate authentication, improve seamless connectivity to corporate intranets, and enhance the information resources they already own, or have access to via subscriptions or internal libraries, as well as organize workgroups to collaborate around scientific information. | |
As a cloud-based software-as-a-service (SaaS) solution, Article Galaxy is deployed as a single system across our entire customer base. Customers access Article Galaxy securely through online web interfaces and via web service APIs, which enable customers to leverage Article Galaxy features and functionality from within proprietary and other 3rd party software systems. Article Galaxy can also be configured to satisfy a customer’s individual preferences in areas such as user experience, business processes, and spend management. As a SaaS solution, Article Galaxy benefits from efficiencies in scalability, stability and development costs, resulting in significant advantages versus multiple instance or installed desktop software alternatives. We leverage these technical efficiencies to fuel rapid innovation and competitive advantage. | |
Reprints and ePrints | |
Marketing departments in life science and other research intensive organizations generally require large quantities of printed copies of published STM journal articles called “Reprints.” They generally supply Reprints to doctors who may prescribe their products and at conferences. We obtain the necessary permissions from the content publisher so that our customer’s use complies with applicable copyright laws. The majority of content publishers print their content in-house and prohibit others from printing their content; however, when not prohibited by the content publisher, we use a third parties to print Reprint orders delivered to North American customers, and TAAG or third parties to print Reprint orders delivered to European customers. Electronic copies, called “ePrints,” are also used for distribution through the Internet and other electronic mechanisms. We have developed proprietary ePrint software that increase the efficiency of our customers’ content purchases by transitioning from paper Reprints to electronic ePrints, and by improving compliance with applicable copyright laws and promotional regulations within the life science industry. Reprints and ePrints are charged on a transactional basis and order volume typically fluctuates from month to month based on customer marketing budgets and the existence of STM journal articles that fit customer requirements. | |
Printing and Logistics | |
At June 30, 2014, our printing and logistics services, performed by TAAG, include a variety of hard copy, professionally printed materials that are used for retail and marketing purposes, including Reprints, as well as regulatory sensitive marketing materials and clinical trial kits. The majority of TAAG’s customers are in France. Only a small percentage of the printing work performed by TAAG is for Reprint orders for our North American operations delivered to mostly European customers. | |
On August 18, 2014 the Board of Directors of the Company authorized management to commit to a plan to sell TAAG immediately at a reasonable price in relation to its current fair value, and in the event such sale is not consummated by September 10, 2014, that management proceed with an insolvency filing by TAAG under French law. Accordingly effective August 18, 2014 the operations of TAAG will be classified as discontinued operations. On September 15, 2014, the French Tribunal de Commerce appointed an Administrator for TAAG following a declaration of insolvency by our legal representative. As a result, effective September 15, 2014, the Company relinquished control of TAAG to the Tribunal and TAAG ceased to be our subsidiary, and printing and logistics services ceased (see Note 12). | |
Liquidity | |
Historically, we have relied upon cash from financing activities to fund substantially all of the cash requirements of our activities and have incurred significant losses and experienced negative cash flow. As of June 30, 2014, we had a working capital deficiency of $1,351,581 and a stockholders’ deficiency of $418,926. For the year ended June 30, 2014, the Company recorded a net loss of $1,866,418 however cash provided by operating activities was $310,700. We cannot predict if we will be profitable. We may continue to incur losses for an indeterminate period of time and may never sustain profitability. An extended period of losses and negative cash flow may prevent us from successfully operating and expanding our business. We may be unable to achieve and maintain profitability on a quarterly or annual basis.However, given the subsequent deconsolidation of TAAG discussed below the Company believes that its current cash resources and expected cash flow from its North American operations will be sufficient to sustain current operations for the next twelve months. The Company expects that cash flow from its North American operating activities will continue to be positive; however, there are no assurances that such results will be achieved. | |
France (TAAG) | |
Cash resources and expected cash flow from TAAG are not sufficient to sustain TAAG operations for the next twelve months. During the year ended June 30, 2014, TAAG incurred a net loss from operations of $740,180, and at June 30, 2014, had a working capital deficiency of approximately $2,115,000. In addition, significant net losses in prior years have been incurred. As of June 30, 2014, approximately $600,000 of payroll and VAT taxes were delinquent. In January 2014, the French tax authorities agreed to a repayment plan for the entire balance of delinquent payroll and VAT taxes consisting of 24 monthly payments of approximately $35,000 beginning in February 2014. Effective June 30, 2013, we forgave a loan receivable from TAAG totaling $1,009,115 to improve TAAG’s liquidity. | |
As a result, on August 18, 2014 the Board of Directors of the Company authorized management to commit to a plan to sell TAAG immediately at a reasonable price in relation to its current fair value, and in the event such sale is not consummated by September 10, 2014, that management proceed with an insolvency filing by TAAG under French law. Accordingly effective August 18, 2014 the operations of TAAG will be classified as discontinued operations. On September 15, 2014, the French Tribunal de Commerce appointed an Administrator for TAAG following a declaration of insolvency by our legal representative. As a result, effective September 15, 2014, the Company relinquished control of TAAG to the Tribunal and TAAG ceased to be our subsidiary and will be deconsolidated from our financial statements. In accordance with consolidation guidance we will derecognize the assets, liabilities and other comprehensive income of TAAG with a resulting gain on deconsolidation of approximately $1,000,000 recorded on our consolidated statements of operations on September 15, 2014. In addition, comparative information for prior periods that is presented in future financial statements will be restated to segregate the assets, liabilities, revenue, expenses, and cash flows related to TAAG as discontinued operations. | |
Principles of Consolidation | |
The accompanying financial statements are consolidated and include the accounts of the Company and its wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Summary of Significant Accounting Policies | ' | ||||||||
Note 2. Summary of Significant Accounting Policies | |||||||||
Use of Estimates | |||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. | |||||||||
These estimates and assumptions include estimates for reserves of uncollectible accounts, inventory obsolescence, analysis of impairments of recorded goodwill and intangibles, accruals for potential liabilities and assumptions made in valuing equity instruments issued for services or acquisitions. | |||||||||
Cash and cash equivalents | |||||||||
For purposes of the statements of cash flows, the Company defines cash equivalents as all highly liquid debt instruments purchased with a maturity of three months or less. | |||||||||
Fair value of financial instruments | |||||||||
Effective January 1, 2008, fair value measurements are determined by the Company's adoption of authoritative guidance issued by the Financial Accounting Standards Board (the “FASB”), with the exception of the application of the statement to non-recurring, non-financial assets and liabilities as permitted. Fair value is defined in the authoritative guidance as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy was established, which prioritizes the inputs used in measuring fair value into three broad levels as follows: | |||||||||
Level 1 – Quoted prices in active markets for identical assets or liabilities. | |||||||||
Level 2 – Inputs, other than the quoted prices in active markets, are observable either directly or indirectly. | |||||||||
Level 3 – Unobservable inputs based on the Company's assumptions. | |||||||||
The Company is required to use observable market data if such data is available without undue cost and effort. The Company has no fair value items required to be disclosed as of June 30, 2014 or 2013. | |||||||||
Allowance for doubtful accounts | |||||||||
The Company evaluates the collectability of its trade accounts receivable based on a number of factors. In circumstances where the Company becomes aware of a specific customer’s inability to meet its financial obligations to the Company, a specific reserve for bad debts is estimated and recorded, which reduces the recognized receivable to the estimated amount the Company believes will ultimately be collected. In addition to specific customer identification of potential bad debts, bad debt charges are recorded based on the Company’s historical losses and an overall assessment of past due trade accounts receivable outstanding. The Company established an allowance for doubtful accounts of $321,698 and $211,743 as of June 30, 2014 and 2013, respectively. | |||||||||
Concentration of Credit Risk | |||||||||
Financial instruments, which potentially subject the Company to concentrations of credit risk, consist of cash and cash equivalents and accounts receivable. The Company places its cash with high quality financial institutions and at times may exceed the FDIC $250,000 insurance limit. The Company does not anticipate incurring any losses related to these credit risks. The Company extends credit based on an evaluation of the customer's financial condition, generally without collateral. Exposure to losses on receivables is principally dependent on each customer's financial condition. The Company monitors its exposure for credit losses and intends to maintain allowances for anticipated losses, as required. | |||||||||
Cash denominated in Euros with a US Dollar equivalent of $191,259 and $393,093 at June 30, 2014 and 2013, respectively, was held in accounts at financial institutions located in Europe. | |||||||||
The following table summarizes accounts receivable concentrations: | |||||||||
As of | |||||||||
June 30, | |||||||||
2014 | 2013 | ||||||||
Customer A | * | 11 | % | ||||||
The following table summarizes revenue concentrations: | |||||||||
Twelve Months Ended | |||||||||
June 30, | |||||||||
2014 | 2013 | ||||||||
Customer A | 12 | % | 11 | % | |||||
Customer B | * | 14 | % | ||||||
The following table summarizes vendor concentrations: | |||||||||
Twelve Months Ended | |||||||||
June 30, | |||||||||
2014 | 2013 | ||||||||
Vendor A | 22 | % | 16 | % | |||||
Vendor B | 12 | % | * | ||||||
Vendor C | 11 | % | 11 | % | |||||
Vendor D | * | 22 | % | ||||||
* Less than 10% | |||||||||
Property and equipment | |||||||||
Property and equipment are stated at cost and are depreciated using the straight-line method over their estimated useful lives of 3 to 7 years. Leasehold improvements are amortized over the shorter of the useful lives of the related assets, or the lease term. Expenditures for maintenance and repairs are charged to operations as incurred while renewals and betterments are capitalized. Gains and losses on disposals are included in the consolidated statements of operations. | |||||||||
Management assess the carrying value of property and equipment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If there is indication of impairment, management prepares an estimate of future cash flows expected to result from the use of the asset and its eventual disposition. If these cash flows are less than the carrying amount of the asset, an impairment loss is recognized to write down the asset to its estimated fair value. For the years ended June 30, 2014 and 2013, the Company did not recognize any impairments for its property and equipment. | |||||||||
Intangible Assets | |||||||||
Management performs impairment tests of indefinite-lived intangible assets at least annually, or whenever an event occurs or circumstances change that indicate impairment has more likely than not occurred. | |||||||||
The Company reviews intangible assets subject to amortization at least annually to determine if any adverse conditions exist or a change in circumstances has occurred that would indicate impairment or a change in the remaining useful life. If the carrying value of an asset exceeds its undiscounted cash flows, the Company writes down the carrying value of the intangible asset to its fair value in the period identified. If the carrying value of assets is determined not to be recoverable, the Company records an impairment loss equal to the excess of the carrying value over the fair value of the assets. The Company’s estimate of fair value is based on the best information available, in the absence of quoted market prices. The Company generally calculates fair value as the present value of estimated future cash flows that the Company expects to generate from the asset using a discounted cash flow income approach as described above. If the estimate of an intangible asset’s remaining useful life is changed, the Company amortizes the remaining carrying value of the intangible asset prospectively over the revised remaining useful life. | |||||||||
As of June 30, 2014 and 2013, the Company determined that there were no indicators of impairment of its recorded intangible assets. | |||||||||
Revenue Recognition | |||||||||
The Company’s policy is to recognize revenue when services have been performed, risk of loss and title to the product transfers to the customer, the selling price is fixed or determinable, and collectability is reasonably assured. At June 30, 2014, we generate revenue by providing three types of services to our customers: Article Galaxy, Reprints and ePrints, and Printing and Logistics. | |||||||||
Article Galaxy | |||||||||
We charge a transactional service fee for the electronic delivery of single articles, and a corresponding copyright fee for the permitted use of the content. This service, known in the industry as single article delivery or document delivery, generates nearly all of the revenue attributable to the Article Galaxy journal article platform. We recognize revenue from single article delivery services upon delivery to the customer only when the selling price is fixed or determinable, and collectability is reasonably assured. | |||||||||
Reprints and ePrints | |||||||||
We charge a transactional fee for each Reprint or ePrint order and are responsible for printing and delivery of Reprint orders, and the electronic delivery and, in some cases, the electronic delivery mechanism of ePrint orders. The majority of content publishers print their content in-house and prohibit others from printing their content; however, when not prohibited by the content publisher, we use a third parties to print Reprint orders delivered to North American customers, and TAAG or third parties to print Reprint orders delivered to European customers. We recognize revenue from reprints and ePrints services upon shipment or electronic delivery to the customer only when the selling price is fixed or determinable, and collectability is reasonably assured. | |||||||||
Printing and Logistics | |||||||||
We charge a transactional fee for each order of hard copy printed material. We are responsible for printing and delivering the order. Printing and Logistics services are performed by TAAG. The majority of TAAG’s customers are in France. Only a small percentage of the printing work performed by TAAG is for Reprint orders for North American operations delivered to mostly European customers. We recognize revenue from printing services when the selling price is fixed or determinable, the printed materials have been shipped to the customer, and collectability is reasonably assured. | |||||||||
Stock-Based Compensation | |||||||||
The Company periodically issues stock options and warrants to employees and non-employees in capital raising transactions, for services and for financing costs. The Company accounts for share-based payments under the guidance as set forth in the Share-Based Payment Topic 718 of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification, which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees, officers, directors, and consultants, including employee stock options, based on estimated fair values. The Company estimates the fair value of share-based payment awards to employees and directors on the date of grant using an option-pricing model, and the value of the portion of the award that is ultimately expected to vest is recognized as expense over the required service period in the Company's Statements of Operations. The Company accounts for stock option and warrant grants issued and vesting to non-employees in accordance with Topic 505 of the FASB Accounting Standards Codification, whereby the value of the stock compensation is based upon the measurement date as determined at either a) the date at which a performance commitment is reached, or b) the date at which the necessary performance to earn the equity instruments is complete. Stock-based compensation is based on awards ultimately expected to vest and is reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, as necessary, in subsequent periods if actual forfeitures differ from those estimates. | |||||||||
Foreign Currency Translation | |||||||||
The accompanying consolidated financial statements are presented in United States dollars, the functional currency of the Company. Capital accounts of foreign subsidiaries are translated into US Dollars from foreign currency at their historical exchange rates when the capital transactions occurred. Assets and liabilities are translated at the exchange rate as of the balance sheet date. Income and expenditures are translated at the average exchange rate of the period. Although the majority of our revenue and costs are in US dollars, the revenue and costs of TAAG are in Euros, and the costs of Reprints Desk Latin America are in Mexican Pesos. As a result, currency exchange fluctuations may impact our revenue and the costs of our operations. We currently do not engage in any currency hedging activities. | |||||||||
The following table summarizes the exchange rates used: | |||||||||
Year Ended | |||||||||
June 30, | |||||||||
2014 | 2013 | ||||||||
Period end Euro : US Dollar exchange rate | 1.36 | 1.3 | |||||||
Average period Euro : US Dollar exchange rate | 1.36 | 1.29 | |||||||
Period end Mexican Peso : US Dollar exchange rate | 0.08 | 0.08 | |||||||
Average period Mexican Peso : US Dollar exchange rate | 0.08 | 0.08 | |||||||
Net Income (Loss) Per Share | |||||||||
Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding for the period, excluding unvested restricted common stock. Diluted net income per share is computed similar to basic net income per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive securities had been issued. At June 30, 2014 potentially dilutive securities include options to acquire 1,888,851 shares of common stock and warrants to acquire 904,998 shares of common stock. At June 30, 2013 potentially dilutive securities include options to acquire 1,692,898 shares of common stock and warrants to acquire 2,376,173 shares of common stock. The dilutive effect of potentially dilutive securities is reflected in diluted net income per share if the exercise prices were lower than the average fair market value of common shares during the reporting period. | |||||||||
Net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding for the period, excluding unvested restricted common stock. Basic and diluted net loss per common share is the same for all periods presented with a net loss because all warrants and stock options outstanding are anti-dilutive. | |||||||||
The calculation of basic and diluted net income (loss) per share is presented below: | |||||||||
Years Ended | |||||||||
June 30, | |||||||||
2014 | 2013 | ||||||||
Numerator: | |||||||||
Net income (loss) | $ | -1,866,418 | $ | 191,922 | |||||
Denominator: | |||||||||
Weighted average shares outstanding (basic) | 17,230,311 | 17,123,460 | |||||||
Effect of diluted securities | - | 139,192 | |||||||
Weighted average shares outstanding (diluted) | 17,230,311 | 17,262,652 | |||||||
Net income (loss) per share: | |||||||||
Basic | $ | -0.11 | $ | 0.01 | |||||
Diluted | $ | -0.11 | $ | 0.01 | |||||
Income taxes | |||||||||
The Company accounts for income taxes using the asset and liability method whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. | |||||||||
Recently Issued Accounting Pronouncements | |||||||||
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09 (ASU 2014-09), Revenue from Contracts with Customers. ASU 2014-09 will eliminate transaction- and industry-specific revenue recognition guidance under current U.S. GAAP and replace it with a principle based approach for determining revenue recognition. ASU 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also will require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for reporting periods beginning after December 15, 2016, and early adoption is not permitted. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. Management is currently assessing the impact the adoption of ASU 2014-09 and has not determined the effect of the standard on our ongoing financial reporting. | |||||||||
In April 2014, the FASB issued Accounting Standards Update No. 2014-08 (ASU 2014-08), Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360). ASU 2014-08 amends the requirements for reporting discontinued operations and requires additional disclosures about discontinued operations. Under the new guidance, only disposals representing a strategic shift in operations or that have a major effect on the Company's operations and financial results should be presented as discontinued operations. This new accounting guidance is effective for annual periods beginning after December 15, 2014. | |||||||||
In August 2014, the FASB issued Accounting Standards Update No. 2014-15 (ASU 2014-15), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard 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 the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The ASU applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. | |||||||||
Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future consolidated financial statements. | |||||||||
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property and Equipment | ' | |||||||
Note 3. Property and Equipment | ||||||||
Property and equipment consists of the following as of June 30, 2014 and 2013: | ||||||||
June 30, | June 30, | |||||||
2014 | 2013 | |||||||
Computer equipment | $ | 334,128 | $ | 320,328 | ||||
Software | 240,483 | 236,920 | ||||||
Printing equipment | 1,293,731 | 1,206,908 | ||||||
Furniture and fixtures | 170,261 | 162,028 | ||||||
Total | 2,038,603 | 1,926,184 | ||||||
Less accumulated depreciation | -1,511,229 | -1,094,953 | ||||||
Net, Property and equipment | $ | 527,374 | $ | 831,231 | ||||
Printing equipment includes $1,158,423 and $1,104,271 of equipment under capital leases as of June 30, 2014 and 2013, respectively, and related accumulated depreciation of $804,595 and $541,087 in the same respective periods. | ||||||||
Depreciation expense for the years ended June 30, 2014 and 2013 was $385,219 and $499,440, respectively, with $0 and $26,979 recorded under cost of revenue in the same respective periods. | ||||||||
During the year ended June 30, 2014, we collected $143,304 resulting from TAAG’s sale of printing equipment with a net book value of $143,304. Due to the subsequent insolvency filing by TAAG this amount may be returned and has been recorded as an other liability at June 30, 2014. During the year ended June 30, 2013, we recorded a gain on sale of fixed assets of $457,544 primarily resulting from TAAG’s sale of printing equipment with a net book value of $37,322. | ||||||||
Intangible_Assets
Intangible Assets | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Intangible Assets | ' | |||||||
Note 4. Intangible Assets | ||||||||
Intangible assets consist of customer lists related to the Company’s North American operations, which are amortized over an estimated useful life of 2 years. As of June 30, 2014 and 2013, the Company determined that there were no indicators of impairment of its recorded intangible assets. | ||||||||
Intangible assets consist of the following as of June 30, 2014 and 2013: | ||||||||
June 30, | June 30, | |||||||
2014 | 2013 | |||||||
Customer lists | $ | 469,514 | $ | 415,302 | ||||
Intellectual property licenses | 16,425 | 16,425 | ||||||
Total | 485,939 | 431,727 | ||||||
Less accumulated amortization | -430,704 | -308,245 | ||||||
Net, Intangible assets | $ | 55,235 | $ | 123,482 | ||||
Line_of_Credit
Line of Credit | 12 Months Ended |
Jun. 30, 2014 | |
Line Of Credit Facility [Abstract] | ' |
Line of Credit | ' |
Note 5. Line of Credit | |
The Company entered into a Loan and Security Agreement with Silicon Valley Bank (“SVB”) on July 23, 2010, which, as amended, provides for a revolving line of credit for the lesser of $4,000,000, or 80% of eligible accounts receivable. The line of credit matures on October 31, 2015, and is subject to certain financial and performance covenants with which we were in compliance as of June 30, 2014. Financial covenants are measured on North American operations only and include maintaining a ratio of quick assets to current liabilities of at least 0.8 to 1.0, and maintaining tangible net worth of $500,000, plus 50% of net income for the fiscal quarter ended from and after December 31, 2013, plus 50% of the dollar value of equity issuances after October 1, 2013 (reduced to 40% of the dollar value of equity issuances in connection with the exercise of warrants in November 2013) and the principal amount of subordinated debt. The Company failed to comply with the tangible net worth covenant in December 2011 and July 2013. On both occasions the parties agreed to amend and reset the minimum tangible net worth required under the covenant. The line of credit bears interest at the prime rate plus 2.5% for periods in which the Company maintains an account balance with SVB (less all indebtedness owed to SVB) of at least $800,000 at all times during the prior calendar month (the “Streamline Period”), and at the prime rate plus 5.25% when a Streamline Period is not in effect. The interest rate on the line of credit was 6.5% as of June 30, 2014. The line of credit is secured by all of the Company’s and its subsidiaries’ assets, excluding TAAG’s assets. | |
Our line of credit with SVB limits the amount of funding of TAAG to a maximum of $50,000 per year. In addition, the lesser of $750,000 or 5% of the funds raised in a registered public offering can be used to fund TAAG through March 31, 2015. | |
There were no outstanding borrowings under the line as of June 30, 2014 and June 30, 2013, respectively. As of June 30, 2014 and June 30, 2013, approximately $2,185,000 and $2,000,000, respectively, of available credit was unused under the line of credit. | |
Factor_Agreements
Factor Agreements | 12 Months Ended |
Jun. 30, 2014 | |
Factor Agreements [Abstract] | ' |
Factor Agreements | ' |
Note 6. Factor Agreements | |
TAAG has factoring agreements with Credit Cooperatif and its subsidiary Natixis for working capital and credit administration purposes. Under these agreements, the factors purchase trade accounts receivable assigned to them by TAAG. The accounts are sold (with recourse) at the invoice amount subject to a factor commission and other miscellaneous fees. Trade accounts receivable not sold remain in TAAG’s custody and control and TAAG maintains all credit risk on those accounts. | |
On September 10, 2013, TAAG terminated its factoring agreement with ABN Amro. As of June 30, 2014 and 2013, $0 and $165,971 was due from ABN Amro, respectively. | |
Under the factoring agreement with Credit Cooperatif, TAAG can borrow up to approximately $325,000 (Euro 250,000). The factor fee is determined on a case by case basis and is not specified in the agreement. The fee charged for the obligations outstanding under the agreement has averaged approximately 5%. As of June 30, 2014 and 2013, $0 and $246,221 was due to Credit Cooperatif, respectively, that relate to funds paid to TAAG not yet returned to the factor. | |
On May 3, 2013, TAAG entered into a factoring agreement with Natixis. The maximum amount TAAG can borrow is not specified in the agreement. The factor fee is determined based on TAAG’s revenue and the average amount of customer invoices. The fee charged for the obligations outstanding as of June 30, 2014 was approximately 0.45%. In addition, interest is charged on the amount financed at the three month Euribor interest rate plus 1.6%. The interest rate under the agreement was approximately 1.8% per annum at June 30, 2014. As of June 30, 2014 and 2013, $116,762 and $0 was due from Natixis, respectively. | |
Notes_payable
Notes payable | 12 Months Ended |
Jun. 30, 2014 | |
Notes Payable [Abstract] | ' |
Notes payable | ' |
Note 7. Notes payable | |
In 2008, TAAG entered into a loan agreement to which outstanding borrowings amounted to $11,601 and $66,352, at June 30, 2014 and 2013, respectively. The note requires quarterly principal and interest payments, bears interest at 6.11% percent per annum, is secured by all the assets of TAAG, and matures in September 2014. | |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||||||
Stockholdersb Equity | ' | |||||||||||||||||||
Note 8. Stockholders’ Equity | ||||||||||||||||||||
Stock Options | ||||||||||||||||||||
In December 2007, we established the 2007 Equity Compensation Plan (the “Plan”). The Plan was approved by our board of directors and stockholders. The purpose of the Plan is to grant stock and options to purchase our common stock to our employees, directors and key consultants. On November 15, 2012, the maximum number of shares of common stock that may be issued pursuant to awards granted under the Plan increased from 1,500,000 to 3,000,000, as approved by our board of directors and stockholders. Cancelled and forfeited stock options and stock awards may again become available for grant under the Plan. There were 783,847 shares available for grant under the Plan as of June 30, 2014. All current stock option grants are made under the 2007 Equity Compensation Plan. | ||||||||||||||||||||
The majority of awards issued under the Plan vest immediately or over three years, with a one year cliff vesting period, and have a term of ten years. Stock-based compensation cost is measured at the grant date, based on the fair value of the awards that are ultimately expected to vest, and recognized on a straight-line basis over the requisite service period, which is generally the vesting period. | ||||||||||||||||||||
The following table summarizes vested and unvested stock option activity: | ||||||||||||||||||||
All Options | Vested Options | Unvested Options | ||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | |||||||||||||||
Average | Average | Average | ||||||||||||||||||
Exercise | Exercise | Exercise | ||||||||||||||||||
Price | Price | Price | ||||||||||||||||||
Outstanding at July 1, 2012 | 1,471,167 | $ | 1.27 | 1,141,666 | $ | 1.27 | 329,501 | $ | 1.29 | |||||||||||
Granted | 387,898 | 1.19 | 183,898 | 1.14 | 204,000 | 1.24 | ||||||||||||||
Options vesting | - | - | 193,333 | 1.25 | -193,333 | 1.25 | ||||||||||||||
Exercised | -85,333 | 1.04 | -85,333 | 1.04 | - | - | ||||||||||||||
Forfeited/Cancelled | -80,834 | 1.82 | -80,834 | 1.82 | - | - | ||||||||||||||
Outstanding at June 30, 2013 | 1,692,898 | 1.24 | 1,352,730 | 1.23 | 340,168 | 1.29 | ||||||||||||||
Granted | 223,953 | 1.72 | 7,400 | 1.8 | 216,553 | 1.71 | ||||||||||||||
Options vesting | - | - | 194,000 | 1.3 | -194,000 | 1.3 | ||||||||||||||
Exercised | - | - | - | - | - | - | ||||||||||||||
Forfeited/Cancelled | -28,000 | 3.09 | -28,000 | 3.09 | - | - | ||||||||||||||
Outstanding at June 30, 2014 | 1,888,851 | $ | 1.27 | 1,526,130 | $ | 1.21 | 362,721 | $ | 1.53 | |||||||||||
The following table presents the assumptions used to estimate the fair values based upon a Black-Scholes option pricing model of the stock options granted during the years ended June 30, 2014 and 2013. | ||||||||||||||||||||
Years Ended June 30, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Expected dividend yield | 0 | % | 0 | % | ||||||||||||||||
Risk-free interest rate | 1.52% - 1.97 | % | 0.67% - 1.08 | % | ||||||||||||||||
Expected life (in years) | 6-May | 5 – 6 | ||||||||||||||||||
Expected volatility | 121% - 126 | % | 130% - 133 | % | ||||||||||||||||
The weighted average remaining contractual life of all options outstanding as of June 30, 2014 was 6.48 years. The remaining contractual life for options vested and exercisable at June 30, 2014 was 5.90 years. Furthermore, the aggregate intrinsic value of all options outstanding as of June 30, 2014 was $141,967, and the aggregate intrinsic value of options vested and exercisable at June 30, 2014 was $137,683, in each case based on the fair value of the Company’s common stock on June 30, 2014. The total fair value of options vested during the year ended June 30, 2014 was $247,385 and is included in selling, general and administrative expenses in the accompanying statement of operations. As of June 30, 2014, the amount of unvested compensation related to these options was $321,009 which will be recorded as an expense in future periods as the options vest. | ||||||||||||||||||||
On July 20, 2012, a former employee exercised options to purchase 73,333 shares of the Company’s common stock on a cashless basis. The Company issued 17,844 shares of common stock as a result of the exercise. In addition, on June 25, 2013, a former employee exercised options to purchase 12,000 shares of the Company’s common stock on a cashless basis. The Company issued 3,922 shares of common stock as a result of the exercise. | ||||||||||||||||||||
Additional information regarding stock options outstanding and exercisable as of June 30, 2014 is as follows: | ||||||||||||||||||||
Option Exercise Price | Options | Remaining | Options | |||||||||||||||||
Outstanding | Contractual | Exercisable | ||||||||||||||||||
Life (in years) | ||||||||||||||||||||
$1.00 | 347,000 | 4.91 | 347,000 | |||||||||||||||||
1.02 | 287,000 | 6.08 | 287,000 | |||||||||||||||||
1.07 | 53,898 | 8.3 | 45,565 | |||||||||||||||||
1.15 | 278,000 | 8.61 | 214,000 | |||||||||||||||||
1.2 | 31,414 | 9.89 | - | |||||||||||||||||
1.25 | 32,000 | 8.63 | 16,000 | |||||||||||||||||
1.3 | 263,000 | 7.68 | 219,165 | |||||||||||||||||
1.5 | 380,000 | 3.56 | 380,000 | |||||||||||||||||
1.75 | 1,067 | 9.59 | - | |||||||||||||||||
1.8 | 190,050 | 9.23 | 7,400 | |||||||||||||||||
1.85 | 24,000 | 8.89 | 10,000 | |||||||||||||||||
1.97 | 1,422 | 9.4 | - | |||||||||||||||||
Total | 1,888,851 | 1,526,130 | ||||||||||||||||||
Warrants | ||||||||||||||||||||
The following table summarizes warrant activity: | ||||||||||||||||||||
Number of | Weighted | |||||||||||||||||||
Warrants | Average | |||||||||||||||||||
Exercise | ||||||||||||||||||||
Price | ||||||||||||||||||||
Outstanding, June 30, 2012 | 2,576,182 | $ | 2.06 | |||||||||||||||||
Granted | - | - | ||||||||||||||||||
Exercised | - | - | ||||||||||||||||||
Expired | -200,009 | 2 | ||||||||||||||||||
Outstanding, June 30, 2013 | 2,376,173 | 2.06 | ||||||||||||||||||
Granted | - | - | ||||||||||||||||||
Exercised | -419,000 | 2 | ||||||||||||||||||
Expired | -1,052,175 | 2.37 | ||||||||||||||||||
Outstanding, June 30, 2014 | 904,998 | $ | 1.73 | |||||||||||||||||
Exercisable, June 30, 2013 | 2,376,173 | $ | 2.06 | |||||||||||||||||
Exercisable, June 30, 2014 | 904,998 | $ | 1.73 | |||||||||||||||||
The intrinsic value for all warrants outstanding as of June 30, 2014 was $1,500, based on the fair value of the Company’s common stock on June 30, 2014. | ||||||||||||||||||||
In November 2013, warrant holders exercised warrants to purchase 419,000 shares of the Company’s common stock for $838,000. | ||||||||||||||||||||
Additional information regarding warrants outstanding and exercisable as of June 30, 2014 is as follows: | ||||||||||||||||||||
Warrant Exercise Price | Warrants | Remaining | Warrants | |||||||||||||||||
Outstanding | Contractual | Exercisable | ||||||||||||||||||
Life (in years) | ||||||||||||||||||||
$1.19 | 150,000 | 7.48 | 150,000 | |||||||||||||||||
1.25 | 150,000 | 1.35 | 150,000 | |||||||||||||||||
1.75 | 333,331 | 0.39 | 333,331 | |||||||||||||||||
2.25 | 266,667 | 0.48 | 266,667 | |||||||||||||||||
3.5 | 2,500 | 2.01 | 2,500 | |||||||||||||||||
4 | 2,500 | 2.01 | 2,500 | |||||||||||||||||
Total | 904,998 | 904,998 | ||||||||||||||||||
Restricted Common Stock | ||||||||||||||||||||
During the year ended June 30, 2013, the Company issued 33,913 shares of restricted common stock to employees. These shares vest over a three year period, with a one year cliff vesting period, and remain subject to forfeiture if vesting conditions are not met. The aggregate value of the stock award was $62,787 based on the market price of our common stock of $1.85 per share on the date of grant. There was no associated unrecognized compensation expense. | ||||||||||||||||||||
During the year ended June 30, 2014, the Company issued 208,029 shares of restricted common stock to employees. These shares vest over a three year period, with a one year cliff vesting period, and remain subject to forfeiture if vesting conditions are not met. The aggregate value of the stock awards was $353,320 based on the market price of our common stock ranging from $1.20 to $ 1.97 per share on the date of grant, which will be amortized over the three year vesting periods. | ||||||||||||||||||||
The total fair value of restricted common stock vested during the year ended June 30, 2014 was $102,613 and is included in selling, general and administrative expenses in the accompanying statement of operations. As of June 30, 2014, the amount of unvested compensation related to these issuances of restricted common stock was $251,706 which will be recorded as an expense in future periods as the stock vests. When calculating net income (loss) per share, these shares are included in weighted average common shares outstanding from the time they vest. | ||||||||||||||||||||
The following table summarizes restricted common stock activity: | ||||||||||||||||||||
Number of | Weighted | |||||||||||||||||||
Shares | Average | |||||||||||||||||||
Grant Date | ||||||||||||||||||||
Fair Value | ||||||||||||||||||||
Non-vested, June 30, 2012 | - | $ | - | |||||||||||||||||
Granted | 33,939 | 1.85 | ||||||||||||||||||
Vested | - | - | ||||||||||||||||||
Forfeited | - | - | ||||||||||||||||||
Non-vested, June 30, 2013 | 33,939 | 1.85 | ||||||||||||||||||
Granted | 208,029 | 1.7 | ||||||||||||||||||
Vested | -14,141 | 1.85 | ||||||||||||||||||
Forfeited | - | - | ||||||||||||||||||
Non-vested, June 30, 2014 | 227,827 | $ | 1.72 | |||||||||||||||||
Issuance of Common Stock | ||||||||||||||||||||
On December 6, 2013, the Company issued 2,748 shares of common stock valued at $5,222 to a consultant for services rendered. | ||||||||||||||||||||
Contingencies_and_Commitments
Contingencies and Commitments | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Contingencies and Commitments | ' | |||||||
Note 9. Contingencies and Commitments | ||||||||
Operating Leases for Facilities | ||||||||
The Company leases executive offices in Encino, California in accordance with the terms of a non-cancelable operating lease agreement. The lease requires monthly payments between $4,820 and $5,115 through May 2015, and is being accounted for by the Company on a straight-line basis over the term of the lease. | ||||||||
The Company leases a printing facility, of which operations were discontinued in June 2013, in Northbrook, Illinois in accordance with the terms of a non-cancelable operating lease agreement. The lease requires monthly payments between $8,250 and $8,500 through May 2016, and is being accounted for by the Company on a straight-line basis over the term of the lease. In addition to monthly rentals, the lease requires the payment of real estate taxes and maintenance. On March 24, 2013, we entered into an agreement to sublease the facility to a third party effective April 1, 2013. The sublease calls for monthly rental proceeds of $4,265 from June 2013 to August 2013, and $6,300 from September 2013 to May 2016. The amount of the expected rental proceeds from the sublease will be $233,015 less than the amount the Company is contractually obligated to pay under the lease agreement. The deficiency of the expected sublease income over the remaining contractual rent liability was recorded as loss on facility sublease during the year ended June 30, 2013. | ||||||||
TAAG leases a printing facility and offices in France, in accordance with the terms of a non-cancelable operating lease agreement. The lease, as amended, requires monthly payments of approximately $20,000 (€15,417) through December 2019. The Company has guaranteed approximately $50,000 (€40,000) in favor of the landlord in connection with the lease. | ||||||||
The Company leases offices in Monterrey, Mexico in accordance with the terms of a non-cancelable operating lease agreement. The lease requires monthly payments of approximately $1,500 (19,482 Mexican Pesos) through July 2015, and is being accounted for by the Company on a straight-line basis over the term of the lease. | ||||||||
Rent, including real estate taxes, for the years ended June 30, 2014 and 2013 was $374,060 and $559,659, respectively. | ||||||||
Capital Leases for Equipment | ||||||||
As of June 30, 2014, the Company also has three non-cancelable leases for printing machinery and equipment that are accounted for as capital leases, with aggregate monthly capital lease payments of approximately $28,000, including interest at rates between 4.2% and 5.9% per annum, through September 2016. | ||||||||
Annual future minimum lease payments under operating leases for facilities, net of sublease income, and capital leases for equipment as of June 30, 2014 are as follows: | ||||||||
Fiscal Year Ending June 30, | Operating | Capital | ||||||
Leases for | Leases for | |||||||
Facilities, | Equipment | |||||||
Net of | ||||||||
Sublease | ||||||||
Income | ||||||||
2015 | $ | 424,312 | $ | 340,892 | ||||
2016 | 346,262 | 94,335 | ||||||
2017 | 285,285 | 23,584 | ||||||
2018 | 285,285 | - | ||||||
2019 | 345,477 | - | ||||||
Thereafter | 141,075 | - | ||||||
Total minimum lease payments | $ | 1,827,696 | $ | 458,811 | ||||
Amounts representing interest | -20,594 | |||||||
Total principal payments | 438,217 | |||||||
Less: current portion | -324,802 | |||||||
Long term portion | $ | 113,415 | ||||||
Legal Proceedings | ||||||||
The Company is involved in legal proceedings in the ordinary course of its business. Although management of the Company cannot predict the ultimate outcome of these legal proceedings with certainty, it believes that the ultimate resolution of the Company’s legal proceedings, including any amounts it may be required to pay, will not have a material effect on the Company’s consolidated financial statements. | ||||||||
On March 28, 2013, the Company entered into a Settlement Agreement with Fimmotaag and its 2 principal owners (the “Settlement Agreement”), pursuant to which Fimmotaag agreed to return 336,921 shares of the Company’s common stock to the Company and to forego future payments payable to Fimmotaag by the Company pursuant to the terms of the agreement under which the Company acquired TAAG from Fimmotaag. The 2 principal owners of Fimmotaag also agreed to pay 285,000 Euros that they personally guaranteed to TAAG’s landlord, of which TAAG will reimburse them 100,000 Euros. As a condition of the settlement, the Company placed 100,000 Euros in escrow, which was applied to their share of the settlement in 2014, and was recorded as a prepaid asset at June 30, 2013. The Settlement Agreement resolved the suit filed within the Commercial Court of Evry, France, by the Company in February 2013 against Fimmotaag and its 2 principal owners. The Company retired the returned shares in April 2013. | ||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income Taxes | ' | ||||||||
Note 10. Income Taxes | |||||||||
The provision for income taxes consists of the following for the years ended June 30, 2014 and 2013: | |||||||||
June 30, | June 30, | ||||||||
2014 | 2013 | ||||||||
Current | |||||||||
Federal | $ | 9,776 | $ | - | |||||
State | 6,323 | -1,671 | |||||||
Deferred | |||||||||
Federal | - | - | |||||||
Foreign | - | - | |||||||
State | - | - | |||||||
Provision for income tax expense (benefit) | $ | 16,099 | $ | -1,671 | |||||
During the year ended June 30, 2014, the Company recorded a provision for income tax expense of $16,099 which consisted of $9,776 in federal income tax payments and $6,323 in state income tax payments. During the year ended June 30, 2013, the Company recorded an income tax benefit of $1,671 as a result of refunds of prior years’ state income tax payments. | |||||||||
The reconciliation of the effective income tax rate to the federal statutory rate is as follows: | |||||||||
Years Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Federal income tax rate | 34 | % | 34 | % | |||||
State tax, net of federal benefit | -5 | % | -5 | % | |||||
Permanent differences | 43 | % | 625 | % | |||||
Effect of reversal of deferred tax liability | - | % | - | % | |||||
Change in valuation allowance | -71.1 | % | -655 | % | |||||
Other | - | % | - | % | |||||
Effective income tax rate | 0.9 | % | -1 | % | |||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial statement purposes and the amounts used for income tax purposes. Significant components of the Company's deferred tax assets and liabilities at June 30, 2014 and 2013 are as follows: | |||||||||
June 30, | June 30, | ||||||||
2014 | 2013 | ||||||||
Deferred tax assets: | |||||||||
Federal net operating loss carryforward | $ | 2,615,020 | $ | 2,440,048 | |||||
State net operating loss carryforward | 570,945 | 526,613 | |||||||
Intangibles amortization | 252,097 | 235,956 | |||||||
Stock based compensation | 852,091 | 731,316 | |||||||
Other | 132,603 | 98,602 | |||||||
Total deferred tax assets | 4,422,756 | 4,032,535 | |||||||
Deferred tax liability | |||||||||
Intangible Assets | - | - | |||||||
Fixed asset depreciation | 38,158 | 22,022 | |||||||
Net deferred tax assets | 4,460,914 | 4,054,557 | |||||||
Less valuation allowance | -4,460,914 | -4,054,557 | |||||||
$ | - | $ | - | ||||||
The Company has provided a valuation allowance on the deferred tax assets at June 30, 2014 and 2013 to reduce such asset to zero, since there is no assurance that the Company will generate future taxable income to utilize such asset. Management will review this valuation allowance requirement periodically and make adjustments as warranted. The net change in the valuation allowance for the year ended June 30, 2014 was an increase of $406,357. | |||||||||
At June 30, 2014 and 2013, the Company had federal net operating loss (“NOL”) carryforwards of approximately $6,950,000 and $6,450,000, respectively, and state NOL carryforwards of approximately $4,600,000 and $4,100,000, respectively. Federal NOLs could, if unused, expire in 2030. State NOLs, if unused, could expire in 2020. | |||||||||
Effective January 1, 2007, the Company adopted FASB guidelines that address the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under this guidance, we may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. This guidance also provides guidance on derecognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. At the date of adoption, and as of June 30, 2014 and 2013, the Company did not have a liability for unrecognized tax benefits, and no adjustment was required at adoption. | |||||||||
The Company files income tax returns in the U.S. federal jurisdiction and various states. The Company is subject to U.S. federal or state income tax examinations by tax authorities for tax years after 2009. | |||||||||
The Company’s policy is to record interest and penalties on uncertain tax provisions as income tax expense. As of June 30, 2014 and 2013, the Company has no accrued interest or penalties related to uncertain tax positions. Additionally, tax years 2009 through 2014 remain open to examination by the major taxing jurisdictions to which the Company is subject. | |||||||||
Geographical_Information
Geographical Information | 12 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
Geographical Information | ' | |||||||||||||||||||
Note 11. Geographical Information | ||||||||||||||||||||
As of June 30, 2014, the Company had two reportable diverse geographical concentrations: North American Operations, which consists of Reprints Desk and Reprints Desk Latin America, and France, which consists of TAAG. Information related to these operating segments, net of eliminations, consists of the following for the periods below: | ||||||||||||||||||||
Year Ended | Year Ended | |||||||||||||||||||
June 30, 2014 | June 30, 2013 | |||||||||||||||||||
North | France | Total | North | France | Total | |||||||||||||||
American | (TAAG) | American | (TAAG) | |||||||||||||||||
Operations | Operations | |||||||||||||||||||
Revenue | $ | 28,483,175 | $ | 8,067,735 | $ | 36,550,910 | $ | 35,197,927 | $ | 10,300,599 | $ | 45,498,526 | ||||||||
Cost of revenue | 23,029,663 | 5,174,950 | 28,204,613 | 29,808,254 | 6,140,126 | 35,948,380 | ||||||||||||||
Selling, general and administrative expenses | 6,272,232 | 3,345,221 | 9,617,453 | 4,913,365 | 3,926,063 | 8,839,428 | ||||||||||||||
Depreciation and amortization | 219,934 | 287,744 | 507,678 | 235,860 | 355,062 | 590,922 | ||||||||||||||
Loss on facility sublease | - | - | - | 233,015 | - | 233,015 | ||||||||||||||
(Gain) loss on sale of fixed assets | - | - | - | -20,980 | -455,924 | -476,904 | ||||||||||||||
Income (loss) from operations | $ | -1,038,654 | $ | -740,180 | $ | -1,778,834 | $ | 28,413 | $ | 335,272 | $ | 363,685 | ||||||||
As of June 30, 2014 | As of June 30, 2013 | |||||||||||||||||||
North | France | Total | North | France | Total | |||||||||||||||
American | (TAAG) | American | (TAAG) | |||||||||||||||||
Operations | Operations | |||||||||||||||||||
Current assets | $ | 6,515,374 | $ | 1,481,183 | $ | 7,996,557 | $ | 5,536,474 | $ | 2,147,249 | $ | 7,683,723 | ||||||||
Property and equipment, net | 108,914 | 418,460 | 527,374 | 189,596 | 641,635 | 831,231 | ||||||||||||||
Intangible assets, net | 55,235 | - | 55,235 | 123,482 | - | 123,482 | ||||||||||||||
Other non-current assets | 9,709 | 453,752 | 463,461 | 9,712 | 276,361 | 286,073 | ||||||||||||||
Total assets | $ | 6,689,232 | $ | 2,353,395 | $ | 9,042,627 | $ | 5,859,264 | $ | 3,065,245 | 8,924,509 | |||||||||
Current liabilities | $ | 5,749,694 | $ | 3,598,444 | $ | 9,348,138 | $ | 4,732,746 | $ | 3,373,479 | 8,106,225 | |||||||||
Long term liabilities | - | 113,415 | 113,415 | - | 504,104 | 504,104 | ||||||||||||||
Equity | 939,538 | -1,358,464 | -418,926 | 1,126,518 | -812,338 | 314,180 | ||||||||||||||
Total liabilities and equity | $ | 6,689,232 | $ | 2,353,395 | $ | 9,042,627 | $ | 5,859,264 | $ | 3,065,245 | $ | 8,924,509 | ||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Subsequent Events [Abstract] | ' | ||||||||||
Subsequent Events | ' | ||||||||||
Note 12. Subsequent Events | |||||||||||
Stock Options | |||||||||||
On August 18, 2014, the Company granted employees options to purchase 59,500 shares of the Company’s common stock at an exercise price of $0.77 per share. These shares vest over a three year period, with a one year cliff vesting period. The options expire on August 18, 2024. The aggregate fair value of the options was approximately $44,500 which will be amortized over the three-year vesting period. | |||||||||||
Restricted Common Stock | |||||||||||
On August 18, 2014, the Company issued 262,500 shares of restricted stock to employees. These shares vest over a three year period, with a one year cliff vesting period, and remain subject to forfeiture if vesting conditions are not met. The aggregate value of the stock award was $254,278 based on the market price of our common stock of $0.77 per share on the date of grant, which will be amortized over the three-year vesting period. | |||||||||||
Discontinued Operations and Deconsolidation of French Subsidiary – TAAG | |||||||||||
On August 18, 2014 the Board of Directors of the Company authorized management to commit to a plan to sell TAAG immediately at a reasonable price in relation to its current fair value, and in the event such sale is not consummated by September 10, 2014, that management proceed with an insolvency filing by TAAG under French law. Accordingly effective August 18, 2014 the operations of TAAG will be classified as discontinued operations. On September 15, 2014, the French Tribunal de Commerce appointed an Administrator for TAAG following a declaration of insolvency by our legal representative. As a result, effective September 15, 2014, the Company relinquished control of TAAG to the Tribunal and TAAG ceased to be our subsidiary and will be deconsolidated from our financial statements. In accordance with consolidation guidance we will derecognize the assets, liabilities and other comprehensive income of TAAG with a resulting gain on deconsolidation of approximately $1,000,000 recorded on our consolidated statements of operations on September 15, 2014. In addition, comparative information for prior periods that is presented in future financial statements will be restated to segregate the assets, liabilities, revenue, expenses, and cash flows related to TAAG as discontinued operations. | |||||||||||
Below is a Proforma Consolidated Balance Sheet and Proforma Consolidated Statement of Operations and Other Comprehensive Income (Loss) that present the proforma impact of TAAG as if it was classified as a discontinued operation at June 30, 2014. | |||||||||||
Proforma Consolidated Balance Sheet (Unaudited) | |||||||||||
As filed | (Unaudited) | ||||||||||
Proforma | |||||||||||
June 30, 2014 | Adjustments | June 30, 2014 | |||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 2,075,926 | $ | -191,259 | $ | 1,884,667 | |||||
Accounts receivable: | |||||||||||
Trade receivables, net of allowance | 4,741,672 | -746,685 | 3,994,987 | ||||||||
Due from factor | 116,762 | -116,762 | - | ||||||||
Inventory | 192,245 | -192,245 | - | ||||||||
Prepaid expenses and other current assets | 317,263 | -234,232 | 83,031 | ||||||||
Prepaid royalties | 552,689 | - | 552,689 | ||||||||
Current assets of discontinued operations | - | 1,481,183 | 1,481,183 | ||||||||
Total current assets | 7,996,557 | - | 7,996,557 | ||||||||
Other assets: | |||||||||||
Property and equipment, net of accumulated depreciation | 527,374 | -418,460 | 108,914 | ||||||||
Intangible assets, net of accumulated amortization | 55,235 | - | 55,235 | ||||||||
Deposits and other assets | 463,461 | -453,752 | 9,709 | ||||||||
Noncurrent assets of discontinued operations | - | 872,212 | 872,212 | ||||||||
Total assets | $ | 9,042,627 | $ | - | $ | 9,042,627 | |||||
Liabilities and Stockholders’ Equity (Deficiency) | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued expenses | $ | 8,710,072 | $ | -2,960,378 | $ | 5,749,694 | |||||
Capital lease obligations, current | 324,802 | -324,802 | - | ||||||||
Notes payable, current | 11,601 | -11,601 | - | ||||||||
Deferred revenue | 158,359 | -158,359 | - | ||||||||
Other liability | 143,304 | -143,304 | - | ||||||||
Current liabilities of discontinued operations | - | 3,598,444 | 3,598,444 | ||||||||
Total current liabilities | 9,348,138 | - | 9,348,138 | ||||||||
Long term liabilities: | |||||||||||
Capital lease obligations, long term | 113,415 | -113,415 | - | ||||||||
Long term liabilities of discontinued operations | - | 113,415 | 113,415 | ||||||||
Total liabilities | 9,461,553 | - | 9,461,553 | ||||||||
Commitments and contingencies | |||||||||||
Stockholders’ equity (deficiency): | |||||||||||
Preferred stock; $0.001 par value; 20,000,000 shares authorized; no shares issued and outstanding | - | - | - | ||||||||
Common stock; $0.001 par value; 100,000,000 shares authorized; 17,600,242 and 16,970,465 shares issued and outstanding, respectively | 17,600 | - | 17,600 | ||||||||
Additional paid-in capital | 15,406,033 | - | 15,406,033 | ||||||||
Accumulated deficit | -15,858,656 | - | -15,858,656 | ||||||||
Accumulated other comprehensive income | 16,097 | - | 16,097 | ||||||||
Total stockholders’ equity (deficiency) | -418,926 | - | -418,926 | ||||||||
Total liabilities and stockholders’ equity (deficiency) | $ | 9,042,627 | $ | - | $ | 9,042,627 | |||||
Proforma Consolidated Statement of Operations and Other Comprehensive Income (Loss) (Unaudited) | |||||||||||
As filed | (Unaudited) | ||||||||||
Proforma | |||||||||||
June 30, 2014 | Adjustments | June 30, 2014 | |||||||||
Revenue | $ | 36,550,910 | $ | -8,067,735 | $ | 28,483,175 | |||||
Cost of revenue | 28,204,613 | -5,174,950 | 23,029,663 | ||||||||
Gross profit | 8,346,297 | -2,892,785 | 5,453,512 | ||||||||
Operating expenses: | |||||||||||
Selling, general and administrative | 9,617,453 | -3,345,221 | 6,272,232 | ||||||||
Depreciation and amortization | 507,678 | -287,744 | 219,934 | ||||||||
Total operating expenses | 10,125,131 | -3,632,965 | 6,492,166 | ||||||||
Loss from continuing operations | -1,778,834 | 740,180 | -1,038,654 | ||||||||
Other income (expenses): | |||||||||||
Interest expense | -55,923 | 42,106 | -13,817 | ||||||||
Other expense | -15,562 | - | -15,562 | ||||||||
Total other expense | -71,485 | 42,106 | -29,379 | ||||||||
Loss from continuing operations before provision for income taxes | -1,850,319 | 782,286 | -1,068,033 | ||||||||
Provision for income taxes | -16,099 | - | -16,099 | ||||||||
Loss from continuing operations | -1,866,418 | - | -1,084,132 | ||||||||
Loss from discontinued operations | - | -782,286 | -782,286 | ||||||||
Net loss | -1,866,418 | - | -1,866,418 | ||||||||
Other comprehensive income (loss): | |||||||||||
Foreign currency translation | -59,908 | - | -59,908 | ||||||||
Comprehensive loss | $ | -1,926,326 | $ | - | $ | -1,926,326 | |||||
Basic and diluted net loss per common share: | |||||||||||
Loss per share from continuing operations | $ | -0.11 | $ | -0.06 | |||||||
Loss per share from discontinued operations | $ | -0.05 | |||||||||
Weighted average shares outstanding: | |||||||||||
Basic | 17,230,311 | 17,230,311 | |||||||||
Diluted | 17,230,311 | 17,230,311 | |||||||||
(The discontinued operations of TAAG will be deconsolidated effective September 15, 2014 for a gain on deconsolidation of former subsidiary of approximately $1,000,000). | |||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Use of Estimates | ' | ||||||||
Use of Estimates | |||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. | |||||||||
These estimates and assumptions include estimates for reserves of uncollectible accounts, inventory obsolescence, analysis of impairments of recorded goodwill and intangibles, accruals for potential liabilities and assumptions made in valuing equity instruments issued for services or acquisitions. | |||||||||
Cash and cash equivalents | ' | ||||||||
Cash and cash equivalents | |||||||||
For purposes of the statements of cash flows, the Company defines cash equivalents as all highly liquid debt instruments purchased with a maturity of three months or less. | |||||||||
Fair value of financial instruments | ' | ||||||||
Fair value of financial instruments | |||||||||
Effective January 1, 2008, fair value measurements are determined by the Company's adoption of authoritative guidance issued by the Financial Accounting Standards Board (the “FASB”), with the exception of the application of the statement to non-recurring, non-financial assets and liabilities as permitted. Fair value is defined in the authoritative guidance as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy was established, which prioritizes the inputs used in measuring fair value into three broad levels as follows: | |||||||||
Level 1 – Quoted prices in active markets for identical assets or liabilities. | |||||||||
Level 2 – Inputs, other than the quoted prices in active markets, are observable either directly or indirectly. | |||||||||
Level 3 – Unobservable inputs based on the Company's assumptions. | |||||||||
The Company is required to use observable market data if such data is available without undue cost and effort. The Company has no fair value items required to be disclosed as of June 30, 2014 or 2013. | |||||||||
Allowance for doubtful accounts | ' | ||||||||
Allowance for doubtful accounts | |||||||||
The Company evaluates the collectability of its trade accounts receivable based on a number of factors. In circumstances where the Company becomes aware of a specific customer’s inability to meet its financial obligations to the Company, a specific reserve for bad debts is estimated and recorded, which reduces the recognized receivable to the estimated amount the Company believes will ultimately be collected. In addition to specific customer identification of potential bad debts, bad debt charges are recorded based on the Company’s historical losses and an overall assessment of past due trade accounts receivable outstanding. The Company established an allowance for doubtful accounts of $321,698 and $211,743 as of June 30, 2014 and 2013, respectively. | |||||||||
Concentration of Credit Risk | ' | ||||||||
Concentration of Credit Risk | |||||||||
Financial instruments, which potentially subject the Company to concentrations of credit risk, consist of cash and cash equivalents and accounts receivable. The Company places its cash with high quality financial institutions and at times may exceed the FDIC $250,000 insurance limit. The Company does not anticipate incurring any losses related to these credit risks. The Company extends credit based on an evaluation of the customer's financial condition, generally without collateral. Exposure to losses on receivables is principally dependent on each customer's financial condition. The Company monitors its exposure for credit losses and intends to maintain allowances for anticipated losses, as required. | |||||||||
Cash denominated in Euros with a US Dollar equivalent of $191,259 and $393,093 at June 30, 2014 and 2013, respectively, was held in accounts at financial institutions located in Europe. | |||||||||
The following table summarizes accounts receivable concentrations: | |||||||||
As of | |||||||||
June 30, | |||||||||
2014 | 2013 | ||||||||
Customer A | * | 11 | % | ||||||
The following table summarizes revenue concentrations: | |||||||||
Twelve Months Ended | |||||||||
June 30, | |||||||||
2014 | 2013 | ||||||||
Customer A | 12 | % | 11 | % | |||||
Customer B | * | 14 | % | ||||||
The following table summarizes vendor concentrations: | |||||||||
Twelve Months Ended | |||||||||
June 30, | |||||||||
2014 | 2013 | ||||||||
Vendor A | 22 | % | 16 | % | |||||
Vendor B | 12 | % | * | ||||||
Vendor C | 11 | % | 11 | % | |||||
Vendor D | * | 22 | % | ||||||
* Less than 10% | |||||||||
Property and equipment | ' | ||||||||
Property and equipment | |||||||||
Property and equipment are stated at cost and are depreciated using the straight-line method over their estimated useful lives of 3 to 7 years. Leasehold improvements are amortized over the shorter of the useful lives of the related assets, or the lease term. Expenditures for maintenance and repairs are charged to operations as incurred while renewals and betterments are capitalized. Gains and losses on disposals are included in the consolidated statements of operations. | |||||||||
Management assess the carrying value of property and equipment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If there is indication of impairment, management prepares an estimate of future cash flows expected to result from the use of the asset and its eventual disposition. If these cash flows are less than the carrying amount of the asset, an impairment loss is recognized to write down the asset to its estimated fair value. For the years ended June 30, 2014 and 2013, the Company did not recognize any impairments for its property and equipment. | |||||||||
Intangible Assets | ' | ||||||||
Intangible Assets | |||||||||
Management performs impairment tests of indefinite-lived intangible assets at least annually, or whenever an event occurs or circumstances change that indicate impairment has more likely than not occurred. | |||||||||
The Company reviews intangible assets subject to amortization at least annually to determine if any adverse conditions exist or a change in circumstances has occurred that would indicate impairment or a change in the remaining useful life. If the carrying value of an asset exceeds its undiscounted cash flows, the Company writes down the carrying value of the intangible asset to its fair value in the period identified. If the carrying value of assets is determined not to be recoverable, the Company records an impairment loss equal to the excess of the carrying value over the fair value of the assets. The Company’s estimate of fair value is based on the best information available, in the absence of quoted market prices. The Company generally calculates fair value as the present value of estimated future cash flows that the Company expects to generate from the asset using a discounted cash flow income approach as described above. If the estimate of an intangible asset’s remaining useful life is changed, the Company amortizes the remaining carrying value of the intangible asset prospectively over the revised remaining useful life. | |||||||||
As of June 30, 2014 and 2013, the Company determined that there were no indicators of impairment of its recorded intangible assets. | |||||||||
Revenue Recognition | ' | ||||||||
Revenue Recognition | |||||||||
The Company’s policy is to recognize revenue when services have been performed, risk of loss and title to the product transfers to the customer, the selling price is fixed or determinable, and collectability is reasonably assured. At June 30, 2014, we generate revenue by providing three types of services to our customers: Article Galaxy, Reprints and ePrints, and Printing and Logistics. | |||||||||
Article Galaxy | |||||||||
We charge a transactional service fee for the electronic delivery of single articles, and a corresponding copyright fee for the permitted use of the content. This service, known in the industry as single article delivery or document delivery, generates nearly all of the revenue attributable to the Article Galaxy journal article platform. We recognize revenue from single article delivery services upon delivery to the customer only when the selling price is fixed or determinable, and collectability is reasonably assured. | |||||||||
Reprints and ePrints | |||||||||
We charge a transactional fee for each Reprint or ePrint order and are responsible for printing and delivery of Reprint orders, and the electronic delivery and, in some cases, the electronic delivery mechanism of ePrint orders. The majority of content publishers print their content in-house and prohibit others from printing their content; however, when not prohibited by the content publisher, we use a third parties to print Reprint orders delivered to North American customers, and TAAG or third parties to print Reprint orders delivered to European customers. We recognize revenue from reprints and ePrints services upon shipment or electronic delivery to the customer only when the selling price is fixed or determinable, and collectability is reasonably assured. | |||||||||
Printing and Logistics | |||||||||
We charge a transactional fee for each order of hard copy printed material. We are responsible for printing and delivering the order. Printing and Logistics services are performed by TAAG. The majority of TAAG’s customers are in France. Only a small percentage of the printing work performed by TAAG is for Reprint orders for North American operations delivered to mostly European customers. We recognize revenue from printing services when the selling price is fixed or determinable, the printed materials have been shipped to the customer, and collectability is reasonably assured. | |||||||||
Stock-Based Compensation | ' | ||||||||
Stock-Based Compensation | |||||||||
The Company periodically issues stock options and warrants to employees and non-employees in capital raising transactions, for services and for financing costs. The Company accounts for share-based payments under the guidance as set forth in the Share-Based Payment Topic 718 of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification, which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees, officers, directors, and consultants, including employee stock options, based on estimated fair values. The Company estimates the fair value of share-based payment awards to employees and directors on the date of grant using an option-pricing model, and the value of the portion of the award that is ultimately expected to vest is recognized as expense over the required service period in the Company's Statements of Operations. The Company accounts for stock option and warrant grants issued and vesting to non-employees in accordance with Topic 505 of the FASB Accounting Standards Codification, whereby the value of the stock compensation is based upon the measurement date as determined at either a) the date at which a performance commitment is reached, or b) the date at which the necessary performance to earn the equity instruments is complete. Stock-based compensation is based on awards ultimately expected to vest and is reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, as necessary, in subsequent periods if actual forfeitures differ from those estimates. | |||||||||
Foreign Currency Translation | ' | ||||||||
Foreign Currency Translation | |||||||||
The accompanying consolidated financial statements are presented in United States dollars, the functional currency of the Company. Capital accounts of foreign subsidiaries are translated into US Dollars from foreign currency at their historical exchange rates when the capital transactions occurred. Assets and liabilities are translated at the exchange rate as of the balance sheet date. Income and expenditures are translated at the average exchange rate of the period. Although the majority of our revenue and costs are in US dollars, the revenue and costs of TAAG are in Euros, and the costs of Reprints Desk Latin America are in Mexican Pesos. As a result, currency exchange fluctuations may impact our revenue and the costs of our operations. We currently do not engage in any currency hedging activities. | |||||||||
The following table summarizes the exchange rates used: | |||||||||
Year Ended | |||||||||
June 30, | |||||||||
2014 | 2013 | ||||||||
Period end Euro : US Dollar exchange rate | 1.36 | 1.3 | |||||||
Average period Euro : US Dollar exchange rate | 1.36 | 1.29 | |||||||
Period end Mexican Peso : US Dollar exchange rate | 0.08 | 0.08 | |||||||
Average period Mexican Peso : US Dollar exchange rate | 0.08 | 0.08 | |||||||
Net Income (Loss) Per Share | ' | ||||||||
Net Income (Loss) Per Share | |||||||||
Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding for the period, excluding unvested restricted common stock. Diluted net income per share is computed similar to basic net income per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive securities had been issued. At June 30, 2014 potentially dilutive securities include options to acquire 1,888,851 shares of common stock and warrants to acquire 904,998 shares of common stock. At June 30, 2013 potentially dilutive securities include options to acquire 1,692,898 shares of common stock and warrants to acquire 2,376,173 shares of common stock. The dilutive effect of potentially dilutive securities is reflected in diluted net income per share if the exercise prices were lower than the average fair market value of common shares during the reporting period. | |||||||||
Net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding for the period, excluding unvested restricted common stock. Basic and diluted net loss per common share is the same for all periods presented with a net loss because all warrants and stock options outstanding are anti-dilutive. | |||||||||
The calculation of basic and diluted net income (loss) per share is presented below: | |||||||||
Years Ended | |||||||||
June 30, | |||||||||
2014 | 2013 | ||||||||
Numerator: | |||||||||
Net income (loss) | $ | -1,866,418 | $ | 191,922 | |||||
Denominator: | |||||||||
Weighted average shares outstanding (basic) | 17,230,311 | 17,123,460 | |||||||
Effect of diluted securities | - | 139,192 | |||||||
Weighted average shares outstanding (diluted) | 17,230,311 | 17,262,652 | |||||||
Net income (loss) per share: | |||||||||
Basic | $ | -0.11 | $ | 0.01 | |||||
Diluted | $ | -0.11 | $ | 0.01 | |||||
Income taxes | ' | ||||||||
Income taxes | |||||||||
The Company accounts for income taxes using the asset and liability method whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. | |||||||||
Recently Issued Accounting Pronouncements | ' | ||||||||
Recently Issued Accounting Pronouncements | |||||||||
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2014-09 (ASU 2014-09), Revenue from Contracts with Customers. ASU 2014-09 will eliminate transaction- and industry-specific revenue recognition guidance under current U.S. GAAP and replace it with a principle based approach for determining revenue recognition. ASU 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also will require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for reporting periods beginning after December 15, 2016, and early adoption is not permitted. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. Management is currently assessing the impact the adoption of ASU 2014-09 and has not determined the effect of the standard on our ongoing financial reporting. | |||||||||
In April 2014, the FASB issued Accounting Standards Update No. 2014-08 (ASU 2014-08), Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360). ASU 2014-08 amends the requirements for reporting discontinued operations and requires additional disclosures about discontinued operations. Under the new guidance, only disposals representing a strategic shift in operations or that have a major effect on the Company's operations and financial results should be presented as discontinued operations. This new accounting guidance is effective for annual periods beginning after December 15, 2014. | |||||||||
In August 2014, the FASB issued Accounting Standards Update No. 2014-15 (ASU 2014-15), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard 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 the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The ASU applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. | |||||||||
Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future consolidated financial statements. | |||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable | ' | ||||||||
The following table summarizes accounts receivable concentrations: | |||||||||
As of | |||||||||
June 30, | |||||||||
2014 | 2013 | ||||||||
Customer A | * | 11 | % | ||||||
Schedule of Revenue by Major Customers | ' | ||||||||
The following table summarizes revenue concentrations: | |||||||||
Twelve Months Ended | |||||||||
June 30, | |||||||||
2014 | 2013 | ||||||||
Customer A | 12 | % | 11 | % | |||||
Customer B | * | 14 | % | ||||||
Schedule of Concentration of Risk | ' | ||||||||
The following table summarizes vendor concentrations: | |||||||||
Twelve Months Ended | |||||||||
June 30, | |||||||||
2014 | 2013 | ||||||||
Vendor A | 22 | % | 16 | % | |||||
Vendor B | 12 | % | * | ||||||
Vendor C | 11 | % | 11 | % | |||||
Vendor D | * | 22 | % | ||||||
* Less than 10% | |||||||||
Schedule Of Foreign Currency Exchange Rate | ' | ||||||||
The following table summarizes the exchange rates used: | |||||||||
Year Ended | |||||||||
June 30, | |||||||||
2014 | 2013 | ||||||||
Period end Euro : US Dollar exchange rate | 1.36 | 1.3 | |||||||
Average period Euro : US Dollar exchange rate | 1.36 | 1.29 | |||||||
Period end Mexican Peso : US Dollar exchange rate | 0.08 | 0.08 | |||||||
Average period Mexican Peso : US Dollar exchange rate | 0.08 | 0.08 | |||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | ||||||||
The calculation of basic and diluted net income (loss) per share is presented below: | |||||||||
Years Ended | |||||||||
June 30, | |||||||||
2014 | 2013 | ||||||||
Numerator: | |||||||||
Net income (loss) | $ | -1,866,418 | $ | 191,922 | |||||
Denominator: | |||||||||
Weighted average shares outstanding (basic) | 17,230,311 | 17,123,460 | |||||||
Effect of diluted securities | - | 139,192 | |||||||
Weighted average shares outstanding (diluted) | 17,230,311 | 17,262,652 | |||||||
Net income (loss) per share: | |||||||||
Basic | $ | -0.11 | $ | 0.01 | |||||
Diluted | $ | -0.11 | $ | 0.01 | |||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Schedule of Property, Plant and Equipment | ' | |||||||
Property and equipment consists of the following as of June 30, 2014 and 2013: | ||||||||
June 30, | June 30, | |||||||
2014 | 2013 | |||||||
Computer equipment | $ | 334,128 | $ | 320,328 | ||||
Software | 240,483 | 236,920 | ||||||
Printing equipment | 1,293,731 | 1,206,908 | ||||||
Furniture and fixtures | 170,261 | 162,028 | ||||||
Total | 2,038,603 | 1,926,184 | ||||||
Less accumulated depreciation | -1,511,229 | -1,094,953 | ||||||
Net, Property and equipment | $ | 527,374 | $ | 831,231 | ||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Schedule Of Finite Lived Intangible Assets | ' | |||||||
Intangible assets consist of the following as of June 30, 2014 and 2013: | ||||||||
June 30, | June 30, | |||||||
2014 | 2013 | |||||||
Customer lists | $ | 469,514 | $ | 415,302 | ||||
Intellectual property licenses | 16,425 | 16,425 | ||||||
Total | 485,939 | 431,727 | ||||||
Less accumulated amortization | -430,704 | -308,245 | ||||||
Net, Intangible assets | $ | 55,235 | $ | 123,482 | ||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | ' | |||||||||||||||||||
The following table summarizes vested and unvested stock option activity: | ||||||||||||||||||||
All Options | Vested Options | Unvested Options | ||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | |||||||||||||||
Average | Average | Average | ||||||||||||||||||
Exercise | Exercise | Exercise | ||||||||||||||||||
Price | Price | Price | ||||||||||||||||||
Outstanding at July 1, 2012 | 1,471,167 | $ | 1.27 | 1,141,666 | $ | 1.27 | 329,501 | $ | 1.29 | |||||||||||
Granted | 387,898 | 1.19 | 183,898 | 1.14 | 204,000 | 1.24 | ||||||||||||||
Options vesting | - | - | 193,333 | 1.25 | -193,333 | 1.25 | ||||||||||||||
Exercised | -85,333 | 1.04 | -85,333 | 1.04 | - | - | ||||||||||||||
Forfeited/Cancelled | -80,834 | 1.82 | -80,834 | 1.82 | - | - | ||||||||||||||
Outstanding at June 30, 2013 | 1,692,898 | 1.24 | 1,352,730 | 1.23 | 340,168 | 1.29 | ||||||||||||||
Granted | 223,953 | 1.72 | 7,400 | 1.8 | 216,553 | 1.71 | ||||||||||||||
Options vesting | - | - | 194,000 | 1.3 | -194,000 | 1.3 | ||||||||||||||
Exercised | - | - | - | - | - | - | ||||||||||||||
Forfeited/Cancelled | -28,000 | 3.09 | -28,000 | 3.09 | - | - | ||||||||||||||
Outstanding at June 30, 2014 | 1,888,851 | $ | 1.27 | 1,526,130 | $ | 1.21 | 362,721 | $ | 1.53 | |||||||||||
Schedule of Share-based Compensation, Estimate Fair Values Assumptions | ' | |||||||||||||||||||
The following table presents the assumptions used to estimate the fair values based upon a Black-Scholes option pricing model of the stock options granted during the years ended June 30, 2014 and 2013. | ||||||||||||||||||||
Years Ended June 30, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Expected dividend yield | 0 | % | 0 | % | ||||||||||||||||
Risk-free interest rate | 1.52% - 1.97 | % | 0.67% - 1.08 | % | ||||||||||||||||
Expected life (in years) | 6-May | 5 – 6 | ||||||||||||||||||
Expected volatility | 121% - 126 | % | 130% - 133 | % | ||||||||||||||||
Schedule of Share-based Compensation, by Exercise Price Range | ' | |||||||||||||||||||
Additional information regarding stock options outstanding and exercisable as of June 30, 2014 is as follows: | ||||||||||||||||||||
Option Exercise Price | Options | Remaining | Options | |||||||||||||||||
Outstanding | Contractual | Exercisable | ||||||||||||||||||
Life (in years) | ||||||||||||||||||||
$1.00 | 347,000 | 4.91 | 347,000 | |||||||||||||||||
1.02 | 287,000 | 6.08 | 287,000 | |||||||||||||||||
1.07 | 53,898 | 8.3 | 45,565 | |||||||||||||||||
1.15 | 278,000 | 8.61 | 214,000 | |||||||||||||||||
1.2 | 31,414 | 9.89 | - | |||||||||||||||||
1.25 | 32,000 | 8.63 | 16,000 | |||||||||||||||||
1.3 | 263,000 | 7.68 | 219,165 | |||||||||||||||||
1.5 | 380,000 | 3.56 | 380,000 | |||||||||||||||||
1.75 | 1,067 | 9.59 | - | |||||||||||||||||
1.8 | 190,050 | 9.23 | 7,400 | |||||||||||||||||
1.85 | 24,000 | 8.89 | 10,000 | |||||||||||||||||
1.97 | 1,422 | 9.4 | - | |||||||||||||||||
Total | 1,888,851 | 1,526,130 | ||||||||||||||||||
Schedule Of Share Based Compensation Other Than Options, Activity | ' | |||||||||||||||||||
The following table summarizes warrant activity: | ||||||||||||||||||||
Number of | Weighted | |||||||||||||||||||
Warrants | Average | |||||||||||||||||||
Exercise | ||||||||||||||||||||
Price | ||||||||||||||||||||
Outstanding, June 30, 2012 | 2,576,182 | $ | 2.06 | |||||||||||||||||
Granted | - | - | ||||||||||||||||||
Exercised | - | - | ||||||||||||||||||
Expired | -200,009 | 2 | ||||||||||||||||||
Outstanding, June 30, 2013 | 2,376,173 | 2.06 | ||||||||||||||||||
Granted | - | - | ||||||||||||||||||
Exercised | -419,000 | 2 | ||||||||||||||||||
Expired | -1,052,175 | 2.37 | ||||||||||||||||||
Outstanding, June 30, 2014 | 904,998 | $ | 1.73 | |||||||||||||||||
Exercisable, June 30, 2013 | 2,376,173 | $ | 2.06 | |||||||||||||||||
Exercisable, June 30, 2014 | 904,998 | $ | 1.73 | |||||||||||||||||
Schedule Warrants Outstanding and Exercisable | ' | |||||||||||||||||||
Additional information regarding warrants outstanding and exercisable as of June 30, 2014 is as follows: | ||||||||||||||||||||
Warrant Exercise Price | Warrants | Remaining | Warrants | |||||||||||||||||
Outstanding | Contractual | Exercisable | ||||||||||||||||||
Life (in years) | ||||||||||||||||||||
$1.19 | 150,000 | 7.48 | 150,000 | |||||||||||||||||
1.25 | 150,000 | 1.35 | 150,000 | |||||||||||||||||
1.75 | 333,331 | 0.39 | 333,331 | |||||||||||||||||
2.25 | 266,667 | 0.48 | 266,667 | |||||||||||||||||
3.5 | 2,500 | 2.01 | 2,500 | |||||||||||||||||
4 | 2,500 | 2.01 | 2,500 | |||||||||||||||||
Total | 904,998 | 904,998 | ||||||||||||||||||
Schedule of Nonvested Restricted Stock Units Activity | ' | |||||||||||||||||||
The following table summarizes restricted common stock activity: | ||||||||||||||||||||
Number of | Weighted | |||||||||||||||||||
Shares | Average | |||||||||||||||||||
Grant Date | ||||||||||||||||||||
Fair Value | ||||||||||||||||||||
Non-vested, June 30, 2012 | - | $ | - | |||||||||||||||||
Granted | 33,939 | 1.85 | ||||||||||||||||||
Vested | - | - | ||||||||||||||||||
Forfeited | - | - | ||||||||||||||||||
Non-vested, June 30, 2013 | 33,939 | 1.85 | ||||||||||||||||||
Granted | 208,029 | 1.7 | ||||||||||||||||||
Vested | -14,141 | 1.85 | ||||||||||||||||||
Forfeited | - | - | ||||||||||||||||||
Non-vested, June 30, 2014 | 227,827 | $ | 1.72 | |||||||||||||||||
Contingencies_and_Commitments_
Contingencies and Commitments (Tables) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Schedule Of Future Minimum Lease Payments For Leases | ' | |||||||
Annual future minimum lease payments under operating leases for facilities, net of sublease income, and capital leases for equipment as of June 30, 2014 are as follows: | ||||||||
Fiscal Year Ending June 30, | Operating | Capital | ||||||
Leases for | Leases for | |||||||
Facilities, | Equipment | |||||||
Net of | ||||||||
Sublease | ||||||||
Income | ||||||||
2015 | $ | 424,312 | $ | 340,892 | ||||
2016 | 346,262 | 94,335 | ||||||
2017 | 285,285 | 23,584 | ||||||
2018 | 285,285 | - | ||||||
2019 | 345,477 | - | ||||||
Thereafter | 141,075 | - | ||||||
Total minimum lease payments | $ | 1,827,696 | $ | 458,811 | ||||
Amounts representing interest | -20,594 | |||||||
Total principal payments | 438,217 | |||||||
Less: current portion | -324,802 | |||||||
Long term portion | $ | 113,415 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Schedule of Components of Income Tax Expense (Benefit) | ' | ||||||||
The provision for income taxes consists of the following for the years ended June 30, 2014 and 2013: | |||||||||
June 30, | June 30, | ||||||||
2014 | 2013 | ||||||||
Current | |||||||||
Federal | $ | 9,776 | $ | - | |||||
State | 6,323 | -1,671 | |||||||
Deferred | |||||||||
Federal | - | - | |||||||
Foreign | - | - | |||||||
State | - | - | |||||||
Provision for income tax expense (benefit) | $ | 16,099 | $ | -1,671 | |||||
Schedule of Effective Income Tax Rate Reconciliation | ' | ||||||||
The reconciliation of the effective income tax rate to the federal statutory rate is as follows: | |||||||||
Years Ended June 30, | |||||||||
2014 | 2013 | ||||||||
Federal income tax rate | 34 | % | 34 | % | |||||
State tax, net of federal benefit | -5 | % | -5 | % | |||||
Permanent differences | 43 | % | 625 | % | |||||
Effect of reversal of deferred tax liability | - | % | - | % | |||||
Change in valuation allowance | -71.1 | % | -655 | % | |||||
Other | - | % | - | % | |||||
Effective income tax rate | 0.9 | % | -1 | % | |||||
Schedule of Deferred Tax Assets and Liabilities | ' | ||||||||
Significant components of the Company's deferred tax assets and liabilities at June 30, 2014 and 2013 are as follows: | |||||||||
June 30, | June 30, | ||||||||
2014 | 2013 | ||||||||
Deferred tax assets: | |||||||||
Federal net operating loss carryforward | $ | 2,615,020 | $ | 2,440,048 | |||||
State net operating loss carryforward | 570,945 | 526,613 | |||||||
Intangibles amortization | 252,097 | 235,956 | |||||||
Stock based compensation | 852,091 | 731,316 | |||||||
Other | 132,603 | 98,602 | |||||||
Total deferred tax assets | 4,422,756 | 4,032,535 | |||||||
Deferred tax liability | |||||||||
Intangible Assets | - | - | |||||||
Fixed asset depreciation | 38,158 | 22,022 | |||||||
Net deferred tax assets | 4,460,914 | 4,054,557 | |||||||
Less valuation allowance | -4,460,914 | -4,054,557 | |||||||
$ | - | $ | - | ||||||
Geographical_Information_Table
Geographical Information (Tables) | 12 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | ' | |||||||||||||||||||
As of June 30, 2014, the Company had two reportable diverse geographical concentrations: North American Operations, which consists of Reprints Desk and Reprints Desk Latin America, and France, which consists of TAAG. Information related to these operating segments, net of eliminations, consists of the following for the periods below: | ||||||||||||||||||||
Year Ended | Year Ended | |||||||||||||||||||
June 30, 2014 | June 30, 2013 | |||||||||||||||||||
North | France | Total | North | France | Total | |||||||||||||||
American | (TAAG) | American | (TAAG) | |||||||||||||||||
Operations | Operations | |||||||||||||||||||
Revenue | $ | 28,483,175 | $ | 8,067,735 | $ | 36,550,910 | $ | 35,197,927 | $ | 10,300,599 | $ | 45,498,526 | ||||||||
Cost of revenue | 23,029,663 | 5,174,950 | 28,204,613 | 29,808,254 | 6,140,126 | 35,948,380 | ||||||||||||||
Selling, general and administrative expenses | 6,272,232 | 3,345,221 | 9,617,453 | 4,913,365 | 3,926,063 | 8,839,428 | ||||||||||||||
Depreciation and amortization | 219,934 | 287,744 | 507,678 | 235,860 | 355,062 | 590,922 | ||||||||||||||
Loss on facility sublease | - | - | - | 233,015 | - | 233,015 | ||||||||||||||
(Gain) loss on sale of fixed assets | - | - | - | -20,980 | -455,924 | -476,904 | ||||||||||||||
Income (loss) from operations | $ | -1,038,654 | $ | -740,180 | $ | -1,778,834 | $ | 28,413 | $ | 335,272 | $ | 363,685 | ||||||||
As of June 30, 2014 | As of June 30, 2013 | |||||||||||||||||||
North | France | Total | North | France | Total | |||||||||||||||
American | (TAAG) | American | (TAAG) | |||||||||||||||||
Operations | Operations | |||||||||||||||||||
Current assets | $ | 6,515,374 | $ | 1,481,183 | $ | 7,996,557 | $ | 5,536,474 | $ | 2,147,249 | $ | 7,683,723 | ||||||||
Property and equipment, net | 108,914 | 418,460 | 527,374 | 189,596 | 641,635 | 831,231 | ||||||||||||||
Intangible assets, net | 55,235 | - | 55,235 | 123,482 | - | 123,482 | ||||||||||||||
Other non-current assets | 9,709 | 453,752 | 463,461 | 9,712 | 276,361 | 286,073 | ||||||||||||||
Total assets | $ | 6,689,232 | $ | 2,353,395 | $ | 9,042,627 | $ | 5,859,264 | $ | 3,065,245 | 8,924,509 | |||||||||
Current liabilities | $ | 5,749,694 | $ | 3,598,444 | $ | 9,348,138 | $ | 4,732,746 | $ | 3,373,479 | 8,106,225 | |||||||||
Long term liabilities | - | 113,415 | 113,415 | - | 504,104 | 504,104 | ||||||||||||||
Equity | 939,538 | -1,358,464 | -418,926 | 1,126,518 | -812,338 | 314,180 | ||||||||||||||
Total liabilities and equity | $ | 6,689,232 | $ | 2,353,395 | $ | 9,042,627 | $ | 5,859,264 | $ | 3,065,245 | $ | 8,924,509 | ||||||||
Subsequent_Events_Tables
Subsequent Events (Tables) | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
Subsequent Events [Abstract] | ' | ||||||||||
Schedule of Disposal Groups Including Discontinued Operations Proforma Consolidated Balance Sheet | ' | ||||||||||
Below is a Proforma Consolidated Balance Sheet and Proforma Consolidated Statement of Operations and Other Comprehensive Income (Loss) that present the proforma impact of TAAG as if it was classified as a discontinued operation at June 30, 2014. | |||||||||||
Proforma Consolidated Balance Sheet (Unaudited) | |||||||||||
As filed | (Unaudited) | ||||||||||
Proforma | |||||||||||
June 30, 2014 | Adjustments | June 30, 2014 | |||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 2,075,926 | $ | -191,259 | $ | 1,884,667 | |||||
Accounts receivable: | |||||||||||
Trade receivables, net of allowance | 4,741,672 | -746,685 | 3,994,987 | ||||||||
Due from factor | 116,762 | -116,762 | - | ||||||||
Inventory | 192,245 | -192,245 | - | ||||||||
Prepaid expenses and other current assets | 317,263 | -234,232 | 83,031 | ||||||||
Prepaid royalties | 552,689 | - | 552,689 | ||||||||
Current assets of discontinued operations | - | 1,481,183 | 1,481,183 | ||||||||
Total current assets | 7,996,557 | - | 7,996,557 | ||||||||
Other assets: | |||||||||||
Property and equipment, net of accumulated depreciation | 527,374 | -418,460 | 108,914 | ||||||||
Intangible assets, net of accumulated amortization | 55,235 | - | 55,235 | ||||||||
Deposits and other assets | 463,461 | -453,752 | 9,709 | ||||||||
Noncurrent assets of discontinued operations | - | 872,212 | 872,212 | ||||||||
Total assets | $ | 9,042,627 | $ | - | $ | 9,042,627 | |||||
Liabilities and Stockholders’ Equity (Deficiency) | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued expenses | $ | 8,710,072 | $ | -2,960,378 | $ | 5,749,694 | |||||
Capital lease obligations, current | 324,802 | -324,802 | - | ||||||||
Notes payable, current | 11,601 | -11,601 | - | ||||||||
Deferred revenue | 158,359 | -158,359 | - | ||||||||
Other liability | 143,304 | -143,304 | - | ||||||||
Current liabilities of discontinued operations | - | 3,598,444 | 3,598,444 | ||||||||
Total current liabilities | 9,348,138 | - | 9,348,138 | ||||||||
Long term liabilities: | |||||||||||
Capital lease obligations, long term | 113,415 | -113,415 | - | ||||||||
Long term liabilities of discontinued operations | - | 113,415 | 113,415 | ||||||||
Total liabilities | 9,461,553 | - | 9,461,553 | ||||||||
Commitments and contingencies | |||||||||||
Stockholders’ equity (deficiency): | |||||||||||
Preferred stock; $0.001 par value; 20,000,000 shares authorized; no shares issued and outstanding | - | - | - | ||||||||
Common stock; $0.001 par value; 100,000,000 shares authorized; 17,600,242 and 16,970,465 shares issued and outstanding, respectively | 17,600 | - | 17,600 | ||||||||
Additional paid-in capital | 15,406,033 | - | 15,406,033 | ||||||||
Accumulated deficit | -15,858,656 | - | -15,858,656 | ||||||||
Accumulated other comprehensive income | 16,097 | - | 16,097 | ||||||||
Total stockholders’ equity (deficiency) | -418,926 | - | -418,926 | ||||||||
Total liabilities and stockholders’ equity (deficiency) | $ | 9,042,627 | $ | - | $ | 9,042,627 | |||||
Schedule of Disposal Groups Including Discontinued Operations Proforma Consolidated Statement of Operations and Other Comprehensive Income Loss | ' | ||||||||||
Proforma Consolidated Statement of Operations and Other Comprehensive Income (Loss) (Unaudited) | |||||||||||
As filed | (Unaudited) | ||||||||||
Proforma | |||||||||||
June 30, 2014 | Adjustments | June 30, 2014 | |||||||||
Revenue | $ | 36,550,910 | $ | -8,067,735 | $ | 28,483,175 | |||||
Cost of revenue | 28,204,613 | -5,174,950 | 23,029,663 | ||||||||
Gross profit | 8,346,297 | -2,892,785 | 5,453,512 | ||||||||
Operating expenses: | |||||||||||
Selling, general and administrative | 9,617,453 | -3,345,221 | 6,272,232 | ||||||||
Depreciation and amortization | 507,678 | -287,744 | 219,934 | ||||||||
Total operating expenses | 10,125,131 | -3,632,965 | 6,492,166 | ||||||||
Loss from continuing operations | -1,778,834 | 740,180 | -1,038,654 | ||||||||
Other income (expenses): | |||||||||||
Interest expense | -55,923 | 42,106 | -13,817 | ||||||||
Other expense | -15,562 | - | -15,562 | ||||||||
Total other expense | -71,485 | 42,106 | -29,379 | ||||||||
Loss from continuing operations before provision for income taxes | -1,850,319 | 782,286 | -1,068,033 | ||||||||
Provision for income taxes | -16,099 | - | -16,099 | ||||||||
Loss from continuing operations | -1,866,418 | - | -1,084,132 | ||||||||
Loss from discontinued operations | - | -782,286 | -782,286 | ||||||||
Net loss | -1,866,418 | - | -1,866,418 | ||||||||
Other comprehensive income (loss): | |||||||||||
Foreign currency translation | -59,908 | - | -59,908 | ||||||||
Comprehensive loss | $ | -1,926,326 | $ | - | $ | -1,926,326 | |||||
Basic and diluted net loss per common share: | |||||||||||
Loss per share from continuing operations | $ | -0.11 | $ | -0.06 | |||||||
Loss per share from discontinued operations | $ | -0.05 | |||||||||
Weighted average shares outstanding: | |||||||||||
Basic | 17,230,311 | 17,230,311 | |||||||||
Diluted | 17,230,311 | 17,230,311 | |||||||||
Organization_Nature_of_Busines1
Organization, Nature of Business and Basis of Presentation (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Sep. 15, 2014 | Jan. 31, 2014 | Jun. 30, 2014 | |
Subsequent Event [Member] | Taag [Member] | Taag [Member] | ||||
Working Capital Deficit | $1,351,581 | ' | ' | ' | ' | $2,115,000 |
Taxes Payable | ' | ' | ' | ' | ' | 600,000 |
Payments to Acquire Loans Receivable | ' | ' | ' | ' | ' | 1,009,115 |
Operating Income (Loss) | -1,778,834 | 363,685 | ' | ' | ' | 740,180 |
Total stockholders' equity (deficiency) | -418,926 | 314,180 | -434,564 | ' | ' | ' |
Net Income (Loss), Including Portion Attributable To Noncontrolling Interest | -1,866,418 | 191,922 | ' | ' | ' | ' |
Net Cash Provided By (Used In) Operating Activities | 310,700 | -95,838 | ' | ' | ' | ' |
Delinquent Payroll And Tax Taxes Monthly Payments | ' | ' | ' | ' | 35,000 | ' |
Deconsolidation, Gain (Loss), Amount | ' | ' | ' | $1,000,000 | ' | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (Customer A [Member], Accounts Receivable [Member]) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | ||
Customer A [Member] | Accounts Receivable [Member] | ' | ' | |
Concentration Risk, Percentage | ' | [1] | 11.00% |
[1] | Less than 10% |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 1) (Customer Concentration Risk [Member]) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | ||
Customer A [Member] | ' | ' | |
Concentration Risk, Percentage | 12.00% | 11.00% | |
Customer B [Member] | ' | ' | |
Concentration Risk, Percentage | ' | [1] | 14.00% |
[1] | Less than 10% |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Details 2) | 12 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | |||
Vendor A [Member] | ' | ' | ||
Concentration Risk, Percentage | 22.00% | 16.00% | ||
Vendor B [Member] | ' | ' | ||
Concentration Risk, Percentage | 12.00% | ' | [1] | |
Vendor C [Member] | ' | ' | ||
Concentration Risk, Percentage | 11.00% | 11.00% | ||
Vendor D [Member] | ' | ' | ||
Concentration Risk, Percentage | ' | [1] | 22.00% | |
[1] | Less than 10% |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies (Details 3) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Euro To US Dollar [Member] | ' | ' |
Period end exchange rate | 1.36 | 1.3 |
Average period exchange rate | 1.36 | 1.29 |
Mexian Peso To US Dollar [Member] | ' | ' |
Period end exchange rate | 0.08 | 0.08 |
Average period exchange rate | 0.08 | 0.08 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies (Details 4) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Numerator: | ' | ' |
Net income (loss) | ($1,866,418) | $191,922 |
Denominator: | ' | ' |
Weighted average shares outstanding (basic) | 17,230,311 | 17,123,460 |
Effect of diluted securities | 0 | 139,192 |
Weighted average shares outstanding (diluted) | 17,230,311 | 17,262,652 |
Net income (loss) per share: | ' | ' |
Basic | ($0.11) | $0.01 |
Diluted | ($0.11) | $0.01 |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Allowance for Doubtful Accounts Receivable | 321,698 | 211,743 |
Cash, Fdic Insured Amount | 250,000 | ' |
Minimum [Member] | ' | ' |
Property Plant And Equipment Useful Life | '3 years | ' |
Maximum [Member] | ' | ' |
Property Plant And Equipment Useful Life | '7 years | ' |
Employee Stock Option [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,888,851 | 1,692,898 |
Warrant [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 904,998 | 2,376,173 |
Europe Financial Institutions [Member] | ' | ' |
Deposits | 191,259 | 393,093 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Property, Plant and Equipment [Line Items] | ' | ' |
Total | $2,038,603 | $1,926,184 |
Less accumulated depreciation | -1,511,229 | -1,094,953 |
Net, Property and equipment | 527,374 | 831,231 |
Computer Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total | 334,128 | 320,328 |
Software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total | 240,483 | 236,920 |
Printing Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total | 1,293,731 | 1,206,908 |
Less accumulated depreciation | -804,595 | -541,087 |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Total | $170,261 | $162,028 |
Property_and_Equipment_Details1
Property and Equipment (Details Textual) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, accumulated depreciation | $1,511,229 | $1,094,953 |
Depreciation | 385,219 | 499,440 |
Cost of sales | 0 | 26,979 |
Proceeds From Sale Of Property, Plant, and Equipment | 143,304 | 573,574 |
Other Liabilities, Current | 143,304 | 0 |
Printing Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Capital Leased Assets, Gross | 1,158,423 | 1,104,271 |
Property and equipment, accumulated depreciation | 804,595 | 541,087 |
Printing Equipment [Member] | Taag [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Proceeds From Sale Of Property, Plant, and Equipment | 143,304 | 457,544 |
Other Liabilities, Current | 143,304 | ' |
Property Plant Equipment Net Book Value | ' | $37,322 |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Total | $485,939 | $431,727 |
Less accumulated amortization | -430,704 | -308,245 |
Net, Intangible assets | 55,235 | 123,482 |
Customer Lists [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Total | 469,514 | 415,302 |
Intellectual Property Licenses [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Total | $16,425 | $16,425 |
Intangible_Assets_Details_Text
Intangible Assets (Details Textual) (Customer Lists [Member]) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Customer Lists [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite Lived Intangible Asset Useful Life | '2 years | '2 years |
Line_of_Credit_Details_Textual
Line of Credit (Details Textual) (USD $) | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jul. 23, 2010 | Jun. 30, 2014 | |
Maximum [Member] | Silicon Valley Bank [Member] | Silicon Valley Bank [Member] | |||
Taag [Member] | |||||
Line of Credit Facility, Amount Outstanding | ' | ' | ' | $4,000,000 | ' |
Line Of Credit Facility Expiration Date 1 | ' | ' | ' | ' | 31-Oct-15 |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | ' | ' | 2.50% |
Line Of Credit Facility Minimum Amount Outstanding During Period | ' | ' | ' | ' | 800,000 |
Line of Credit Facility, Interest Rate Description | 'the prime rate plus 5.25% | ' | ' | ' | ' |
Line of Credit Facility, Remaining Borrowing Capacity | 2,185,000 | 2,000,000 | ' | ' | ' |
Line of Credit Facility, Interest Rate at Period End | 6.50% | ' | ' | ' | ' |
Percentage Of Eligible Accounts Receivable On Line Of Credit | ' | ' | ' | 80.00% | ' |
Debt Instrument, Covenant Description | ' | ' | ' | ' | 'Financial covenants are measured on North American operations only and include maintaining a ratio of quick assets to current liabilities of at least 0.8 to 1.0, and maintaining tangible net worth of $500,000, plus 50% of net income for the fiscal quarter ended from and after December 31, 2013, plus 50% of the dollar value of equity issuances after October 1, 2013 (reduced to 40% of the dollar value of equity issuances in connection with the exercise of warrants in November 2013) and the principal amount of subordinated debt. |
Debt Instrument, Covenant Compliance | ' | ' | ' | ' | 'The Company failed to comply with the tangible net worth covenant in December 2011 and July 2013. On both occasions the parties agreed to amend and reset the minimum tangible net worth required under the covenant. |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | 50,000 |
Registered Public Offering Funding Amount | $750,000 | ' | ' | ' | ' |
Registered Public Offering Funding Percentage | ' | ' | 5.00% | ' | ' |
Factor_Agreements_Details_Text
Factor Agreements (Details Textual) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
USD ($) | USD ($) | Abn [Member] | Abn [Member] | Credit Cooperatif [Member] | Credit Cooperatif [Member] | Credit Cooperatif [Member] | Natixis [Member] | Natixis [Member] | |
USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | USD ($) | USD ($) | |||
Factor Arrangements Maximum Limit | ' | ' | ' | ' | $325,000 | € 250,000 | ' | ' | ' |
Factor Fee Percentage | ' | ' | ' | ' | ' | ' | ' | 0.45% | ' |
Factor Interest Rate Spread | ' | ' | ' | ' | ' | ' | ' | 1.60% | ' |
Factor Interest Rate Percentage Year End | ' | ' | ' | ' | 5.00% | 5.00% | ' | 1.80% | ' |
Due From Factor Current | ' | ' | 0 | 165,971 | ' | ' | ' | 116,762 | 0 |
Due To Factor Current | $0 | $246,221 | ' | ' | $0 | ' | $246,221 | ' | ' |
Notes_payable_Details_Textual
Notes payable (Details Textual) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Notes Payable | $11,601 | $66,352 |
Accounts Payable, Interest-bearing, Interest Rate | 6.11% | ' |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Outstanding beginning balance Shares | 1,692,898 | 1,471,167 |
Granted Shares | 223,953 | 387,898 |
Vested, Number Of Shares | 0 | 0 |
Exercised Shares | 0 | -85,333 |
Forfeited/Cancelled Shares | -28,000 | -80,834 |
Outstanding ending balance Shares | 1,888,851 | 1,692,898 |
Outstanding beginning balance Weighted Average Exercise Price | $1.24 | $1.27 |
Granted Weighted Average Exercise Price | $1.72 | $1.19 |
Options vesting Weighted Average Exercise Price | $0 | $0 |
Exercised Weighted Average Exercise Price | $0 | $1.04 |
Forfeited/Cancelled Weighted Average Exercise Price | $3.09 | $1.82 |
Outstanding ending balance Weighted Average Exercise Price | $1.27 | $1.24 |
Unvested [Member] | ' | ' |
Outstanding beginning balance Shares | 340,168 | 329,501 |
Granted Shares | 216,553 | 204,000 |
Vested, Number Of Shares | -194,000 | -193,333 |
Exercised Shares | 0 | 0 |
Forfeited/Cancelled Shares | 0 | 0 |
Outstanding ending balance Shares | 362,721 | 340,168 |
Outstanding beginning balance Weighted Average Exercise Price | $1.29 | $1.29 |
Granted Weighted Average Exercise Price | $1.71 | $1.24 |
Options vesting Weighted Average Exercise Price | $1.30 | $1.25 |
Exercised Weighted Average Exercise Price | $0 | $0 |
Forfeited/Cancelled Weighted Average Exercise Price | $0 | $0 |
Outstanding ending balance Weighted Average Exercise Price | $1.53 | $1.29 |
Vested [Member] | ' | ' |
Outstanding beginning balance Shares | 1,352,730 | 1,141,666 |
Granted Shares | 7,400 | 183,898 |
Vested, Number Of Shares | 194,000 | 193,333 |
Exercised Shares | 0 | -85,333 |
Forfeited/Cancelled Shares | -28,000 | -80,834 |
Outstanding ending balance Shares | 1,526,130 | 1,352,730 |
Outstanding beginning balance Weighted Average Exercise Price | $1.23 | $1.27 |
Granted Weighted Average Exercise Price | $1.80 | $1.14 |
Options vesting Weighted Average Exercise Price | $1.30 | $1.25 |
Exercised Weighted Average Exercise Price | $0 | $1.04 |
Forfeited/Cancelled Weighted Average Exercise Price | $3.09 | $1.82 |
Outstanding ending balance Weighted Average Exercise Price | $1.21 | $1.23 |
Stockholders_Equity_Details_1
Stockholders' Equity (Details 1) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Expected dividend yield | 0.00% | 0.00% |
Expected volatility Minmum | 121.00% | 130.00% |
Expected volatility Maximum | 126.00% | 133.00% |
Minimum [Member] | ' | ' |
Risk-free interest rate | 1.52% | 0.67% |
Expected life (in years) | '5 years | '5 years |
Maximum [Member] | ' | ' |
Risk-free interest rate | 1.97% | 1.08% |
Expected life (in years) | '6 years | '6 years |
Stockholders_Equity_Details_2
Stockholders' Equity (Details 2) (Stock Options [Member], USD $) | 12 Months Ended |
Jun. 30, 2014 | |
Options Outstanding | 1,888,851 |
Options Exercisable | 1,526,130 |
Range One [Member] | ' |
Option Exercise Price | $1 |
Options Outstanding | 347,000 |
Options Outstanding Remaining Contractual Life (in years) | '4 years 10 months 28 days |
Options Exercisable | 347,000 |
Range Two [Member] | ' |
Option Exercise Price | $1.02 |
Options Outstanding | 287,000 |
Options Outstanding Remaining Contractual Life (in years) | '6 years 29 days |
Options Exercisable | 287,000 |
Range Three [Member] | ' |
Option Exercise Price | $1.07 |
Options Outstanding | 53,898 |
Options Outstanding Remaining Contractual Life (in years) | '8 years 3 months 18 days |
Options Exercisable | 45,565 |
Range Four [Member] | ' |
Option Exercise Price | $1.15 |
Options Outstanding | 278,000 |
Options Outstanding Remaining Contractual Life (in years) | '8 years 7 months 10 days |
Options Exercisable | 214,000 |
Range Five [Member] | ' |
Option Exercise Price | $1.20 |
Options Outstanding | 31,414 |
Options Outstanding Remaining Contractual Life (in years) | '9 years 10 months 20 days |
Options Exercisable | 0 |
Range Six [Member] | ' |
Option Exercise Price | $1.25 |
Options Outstanding | 32,000 |
Options Outstanding Remaining Contractual Life (in years) | '8 years 7 months 17 days |
Options Exercisable | 16,000 |
Range Seven [Member] | ' |
Option Exercise Price | $1.30 |
Options Outstanding | 263,000 |
Options Outstanding Remaining Contractual Life (in years) | '7 years 8 months 5 days |
Options Exercisable | 219,165 |
Range Eight [Member] | ' |
Option Exercise Price | $1.50 |
Options Outstanding | 380,000 |
Options Outstanding Remaining Contractual Life (in years) | '3 years 6 months 22 days |
Options Exercisable | 380,000 |
Range Nine [Member] | ' |
Option Exercise Price | $1.75 |
Options Outstanding | 1,067 |
Options Outstanding Remaining Contractual Life (in years) | '9 years 7 months 2 days |
Options Exercisable | 0 |
Range Ten [Member] | ' |
Option Exercise Price | $1.80 |
Options Outstanding | 190,050 |
Options Outstanding Remaining Contractual Life (in years) | '9 years 2 months 23 days |
Options Exercisable | 7,400 |
Range Eleven [Member] | ' |
Option Exercise Price | $1.85 |
Options Outstanding | 24,000 |
Options Outstanding Remaining Contractual Life (in years) | '8 years 10 months 20 days |
Options Exercisable | 10,000 |
Range Twelve [Member] | ' |
Option Exercise Price | $1.97 |
Options Outstanding | 1,422 |
Options Outstanding Remaining Contractual Life (in years) | '9 years 4 months 24 days |
Options Exercisable | 0 |
Stockholders_Equity_Details_3
Stockholders' Equity (Details 3) (Warrant [Member], USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Warrant [Member] | ' | ' |
Outstanding, Beginning balance Number of Warrants | 2,376,173 | 2,576,182 |
Granted Number of Warrants | 0 | 0 |
Exercised Number of Warrants | -419,000 | 0 |
Expired Number of Warrants | -1,052,175 | -200,009 |
Outstanding, Ending balance Number of Warrants | 904,998 | 2,376,173 |
Exercisable, Number of Warrants | 904,998 | 2,376,173 |
Outstanding, Beginning balance Weighted Average Exercise Price | $2.06 | $2.06 |
Granted Weighted Average Exercise Price | $0 | $0 |
Exercised Weighted Average Exercise Price | $2 | $0 |
Expired Weighted Average Expired Price | $2.37 | $2 |
Outstanding, Ending balance Weighted Average Exercise Price | $1.73 | $2.06 |
Exercisable, Weighted Average Exercise Price | $1.73 | $2.06 |
Stockholders_Equity_Details_4
Stockholders' Equity (Details 4) (Warrant [Member], USD $) | 12 Months Ended |
Jun. 30, 2014 | |
Warrants Outstanding | 904,998 |
Warrants Exercisable | 904,998 |
Range One [Member] | ' |
Warrant Exercise Price | $1.19 |
Warrants Outstanding | 150,000 |
Warrants Outstanding Remaining Contractual Life (in years) | '7 years 5 months 23 days |
Warrants Exercisable | 150,000 |
Range Two [Member] | ' |
Warrant Exercise Price | $1.25 |
Warrants Outstanding | 150,000 |
Warrants Outstanding Remaining Contractual Life (in years) | '1 year 4 months 6 days |
Warrants Exercisable | 150,000 |
Range Three [Member] | ' |
Warrant Exercise Price | $1.75 |
Warrants Outstanding | 333,331 |
Warrants Outstanding Remaining Contractual Life (in years) | '4 months 20 days |
Warrants Exercisable | 333,331 |
Range Four [Member] | ' |
Warrant Exercise Price | $2.25 |
Warrants Outstanding | 266,667 |
Warrants Outstanding Remaining Contractual Life (in years) | '5 months 23 days |
Warrants Exercisable | 266,667 |
Range Five [Member] | ' |
Warrant Exercise Price | $3.50 |
Warrants Outstanding | 2,500 |
Warrants Outstanding Remaining Contractual Life (in years) | '2 years 4 days |
Warrants Exercisable | 2,500 |
Range Six [Member] | ' |
Warrant Exercise Price | $4 |
Warrants Outstanding | 2,500 |
Warrants Outstanding Remaining Contractual Life (in years) | '2 years 4 days |
Warrants Exercisable | 2,500 |
Stockholders_Equity_Details_5
Stockholders' Equity (Details 5) (Restricted Common Stock [Member], USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Restricted Common Stock [Member] | ' | ' |
Outstanding, Beginning balance Number of Warrants | 33,939 | 0 |
Granted, Number of Shares | 208,029 | 33,939 |
Vested, Number Of Shares | -14,141 | 0 |
Forfeited, Number of Shares | 0 | 0 |
Outstanding, Ending balance Number of Warrants | 227,827 | 33,939 |
Non-vested, Beginning Balance Weighted Average Grant date Fair Value | $1.85 | $0 |
Granted Weighted Average Grant date Fair Value | $1.70 | $1.85 |
Vested Weighted Average Grant date Fair Value | $1.85 | $0 |
Forfeited Weighted Average Grant date Fair Value | $0 | $0 |
Non-vested,Ending Balance Weighted Average Grant date Fair Value | $1.72 | $1.85 |
Stockholders_Equity_Details_Te
Stockholders' Equity (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Nov. 30, 2013 | Jun. 25, 2013 | Jul. 20, 2012 | 19-May-14 | Sep. 06, 2013 | Jan. 28, 2014 | Nov. 22, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Nov. 15, 2012 | Jun. 30, 2014 | Nov. 15, 2012 | Dec. 06, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | |
Restricted Common Stock [Member] | Restricted Common Stock [Member] | Restricted Common Stock [Member] | Restricted Common Stock [Member] | Restricted Common Stock [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Consultant Services [Member] | Warrant [Member] | Common Stock [Member] | Common Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 783,847 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | ' | 3,000,000 | ' | ' | ' | ' |
Share Based Compensation Warrants Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,500 | ' | ' |
Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2 | '6 years 5 months 23 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | '5 years 10 months 24 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | 141,967 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | 137,683 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of vested stock options | 247,385 | 323,776 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | 321,009 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock Issued, Employee Stock Trust | ' | ' | ' | 12,000 | 73,333 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock Shares Issued | 17,600,242 | 16,970,465 | ' | 3,922 | 17,844 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | ' | ' | 419,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants and Rights Outstanding | ' | ' | 838,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Issued For Services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,748 | ' | 210,777 | 33,939 |
Stock Issued During Period, Value, Issued For Services | -107,835 | -62,787 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,222 | ' | -211 | -34 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | ' | ' | '3 years | '3 years | '3 years | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | 102,613 | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | ' | ' | ' | ' | ' | ' | ' | ' | ' | 251,706 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Value, Restricted Stock Award, Gross | $353,320 | $62,787 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale of Stock, Price Per Share | ' | $1.85 | ' | ' | ' | ' | ' | ' | ' | ' | $1.20 | ' | $1.97 | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 208,029 | 33,913 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingencies_and_Commitments_1
Contingencies and Commitments (Details) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
2015 - Operating Leases | $424,312 | ' |
2016 - Operating Leases | 346,262 | ' |
2017 - Operating Leases | 285,285 | ' |
2018 - Operating Leases | 285,285 | ' |
2019 - Operating Leases | 345,477 | ' |
Operating Leases Thereafter | 141,075 | ' |
Operating Leases Total minimum lease payments | 1,827,696 | ' |
2015 - Capital Leases | 340,892 | ' |
2016 - Capital Leases | 94,335 | ' |
2017 - Capital Leases | 23,584 | ' |
2018 - Capital Leases | 0 | ' |
2019 - Capital Leases | 0 | ' |
Capital Leases Thereafter | 0 | ' |
Capital Leases Total minimum lease payments | 458,811 | ' |
Amounts representing interest | -20,594 | ' |
Total principal payments | 438,217 | ' |
Less: current portion | -324,802 | -221,461 |
Long term portion | $113,415 | $493,045 |
Contingencies_and_Commitments_2
Contingencies and Commitments (Details Textual) | 12 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
USD ($) | EUR (€) | USD ($) | June 2013 to August 2013 [Member] | September 2013 to May 2016 [Member] | Minimum [Member] | Maximum [Member] | Northbrook [Member] | Northbrook [Member] | Encino [Member] | Encino [Member] | France [Member] | France [Member] | Mexico [Member] | Mexico [Member] | |
USD ($) | USD ($) | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | USD ($) | EUR (€) | USD ($) | MXN | ||||||
USD ($) | USD ($) | USD ($) | USD ($) | ||||||||||||
Operating Leases, Income Statement, Lease Revenue | ' | ' | ' | $4,265 | $6,300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Leases Monthly Payments Of Lease | ' | ' | ' | ' | ' | ' | ' | 8,250 | 8,500 | 4,820 | 5,115 | 20,000 | 15,417 | 1,500 | 19,482 |
Operating Leases Guaranteed Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000 | 40,000 | ' | ' |
Rent Including Real Estate Taxes | 374,060 | ' | 559,659 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital Leases of Lessor, Contingent Rentals, Basis Spread on Variable Rate | ' | ' | ' | ' | ' | 4.20% | 5.90% | ' | ' | ' | ' | ' | ' | ' | ' |
Capital Leases, Income Statement, Lease Revenue | 28,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchased During Period, Shares | 336,921 | 336,921 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Personally Guaranteed Amount | ' | 285,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reimburse Amount Legal Settlement | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Escrow Deposit | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of loss due to facility sublease | $233,015 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Current | ' | ' |
Federal | $9,776 | $0 |
State | 6,323 | -1,671 |
Deferred | ' | ' |
Federal | 0 | 0 |
Foreign | 0 | 0 |
State | 0 | 0 |
Provision for income tax expense (benefit) | $16,099 | ($1,671) |
Income_Taxes_Details_1
Income Taxes (Details 1) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Federal income tax rate | 34.00% | 34.00% |
State tax, net of federal benefit | -5.00% | -5.00% |
Permanent differences | 43.00% | 625.00% |
Effect of reversal of deferred tax liability | 0.00% | 0.00% |
Change in valuation allowance | -71.10% | -655.00% |
Other | 0.00% | 0.00% |
Effective income tax rate | 0.90% | -1.00% |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Deferred tax assets: | ' | ' |
Federal net operating loss carryforward | $2,615,020 | $2,440,048 |
State net operating loss carryforward | 570,945 | 526,613 |
Intangibles amortization | 252,097 | 235,956 |
Stock based compensation | 852,091 | 731,316 |
Other | 132,603 | 98,602 |
Total deferred tax assets | 4,422,756 | 4,032,535 |
Deferred tax liability | ' | ' |
Intangible Assets | 0 | 0 |
Fixed asset depreciation | 38,158 | 22,022 |
Net deferred tax assets | 4,460,914 | 4,054,557 |
Less valuation allowance | -4,460,914 | -4,054,557 |
Total deferred tax liabilities | $0 | $0 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended | ||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Domestic Country [Member] | Domestic Country [Member] | State and Local Jurisdiction [Member] | State and Local Jurisdiction [Member] | ||
Valuation Allowance, Deferred Tax Asset, Change in Amount | $406,357 | ' | ' | ' | ' |
Operating Loss Carryforwards | ' | $6,950,000 | $6,450,000 | $4,600,000 | $4,100,000 |
Geographical_Information_Detai
Geographical Information (Details) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Revenue | $36,550,910 | $45,498,526 | ' |
Cost of revenue | 28,204,613 | 35,948,380 | ' |
Selling, general and administrative expenses | 9,617,453 | 8,839,428 | ' |
Depreciation and amortization | 507,678 | 590,922 | ' |
Loss on facility sublease | 0 | 233,015 | ' |
Gain on sale of fixed assets | 0 | -476,904 | ' |
Income (loss) from operations | -1,778,834 | 363,685 | ' |
Current assets | 7,996,557 | 7,683,723 | ' |
Property and Equipment, net | 527,374 | 831,231 | ' |
Intangible assets, net | 55,235 | 123,482 | ' |
Other non-current assets | 463,461 | 286,073 | ' |
Total assets | 9,042,627 | 8,924,509 | ' |
Current liabilities | 9,348,138 | 8,106,225 | ' |
Long term liabilities | 113,415 | 504,104 | ' |
Equity | -418,926 | 314,180 | -434,564 |
Total liabilities and equity | 9,042,627 | 8,924,509 | ' |
North American Operations [Member] | ' | ' | ' |
Revenue | 28,483,175 | 35,197,927 | ' |
Cost of revenue | 23,029,663 | 29,808,254 | ' |
Selling, general and administrative expenses | 6,272,232 | 4,913,365 | ' |
Depreciation and amortization | 219,934 | 235,860 | ' |
Loss on facility sublease | 0 | 233,015 | ' |
Gain on sale of fixed assets | 0 | -20,980 | ' |
Income (loss) from operations | -1,038,654 | 28,413 | ' |
Current assets | 6,515,374 | 5,536,474 | ' |
Property and Equipment, net | 108,914 | 189,596 | ' |
Intangible assets, net | 55,235 | 123,482 | ' |
Other non-current assets | 9,709 | 9,712 | ' |
Total assets | 6,689,232 | 5,859,264 | ' |
Current liabilities | 5,749,694 | 4,732,746 | ' |
Long term liabilities | 0 | 0 | ' |
Equity | 939,538 | 1,126,518 | ' |
Total liabilities and equity | 6,689,232 | 5,859,264 | ' |
TAAG [Member] | ' | ' | ' |
Revenue | 8,067,735 | 10,300,599 | ' |
Cost of revenue | 5,174,950 | 6,140,126 | ' |
Selling, general and administrative expenses | 3,345,221 | 3,926,063 | ' |
Depreciation and amortization | 287,744 | 355,062 | ' |
Loss on facility sublease | 0 | 0 | ' |
Gain on sale of fixed assets | 0 | -455,924 | ' |
Income (loss) from operations | -740,180 | 335,272 | ' |
Current assets | 1,481,183 | 2,147,249 | ' |
Property and Equipment, net | 418,460 | 641,635 | ' |
Intangible assets, net | 0 | 0 | ' |
Other non-current assets | 453,752 | 276,361 | ' |
Total assets | 2,353,395 | 3,065,245 | ' |
Current liabilities | 3,598,444 | 3,373,479 | ' |
Long term liabilities | 113,415 | 504,104 | ' |
Equity | -1,358,464 | -812,338 | ' |
Total liabilities and equity | $2,353,395 | $3,065,245 | ' |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Assets | ' | ' | ' |
Cash and cash equivalents | $2,075,926 | $1,699,969 | $3,150,978 |
Accounts receivable: | ' | ' | ' |
Trade receivables, net of allowance | 4,741,672 | 4,966,717 | ' |
Due from factor | 116,762 | 165,971 | ' |
Inventory | 192,245 | 171,682 | ' |
Prepaid expenses and other current assets | 317,263 | 327,532 | ' |
Prepaid royalties | 552,689 | 351,852 | ' |
Current assets of discontinued operations | 0 | ' | ' |
Total current assets | 7,996,557 | 7,683,723 | ' |
Other assets: | ' | ' | ' |
Property and equipment, net of accumulated depreciation | 527,374 | 831,231 | ' |
Intangible assets, net of accumulated amortization | 55,235 | 123,482 | ' |
Deposits and other assets | 463,461 | 286,073 | ' |
Noncurrent assets of discontinued operations | 0 | ' | ' |
Total assets | 9,042,627 | 8,924,509 | ' |
Current liabilities: | ' | ' | ' |
Accounts payable and accrued expenses | 8,710,072 | 7,530,034 | ' |
Capital lease obligations, current | 324,802 | 221,461 | ' |
Notes payable, current | 11,601 | 55,293 | ' |
Deferred revenue | 158,359 | ' | ' |
Other liability | 143,304 | 0 | ' |
Current liabilities of discontinued operations | 0 | ' | ' |
Total current liabilities | 9,348,138 | 8,106,225 | ' |
Long term liabilities: | ' | ' | ' |
Capital lease obligations, long term | 113,415 | 493,045 | ' |
Long term liabilities of discontinued operations | 0 | ' | ' |
Total liabilities | 9,461,553 | 8,610,329 | ' |
Commitments and contingencies | ' | ' | ' |
Stockholders' equity (deficiency): | ' | ' | ' |
Preferred stock; $0.001 par value; 20,000,000 shares authorized; no shares issued and outstanding | 0 | 0 | ' |
Common stock; $0.001 par value; 100,000,000 shares authorized; 17,600,242 and 16,970,465 shares issued and outstanding, respectively | 17,600 | 16,970 | ' |
Additional paid-in capital | 15,406,033 | 14,213,443 | ' |
Accumulated deficit | -15,858,656 | -13,992,238 | ' |
Accumulated other comprehensive income | 16,097 | 76,005 | ' |
Total stockholders' equity (deficiency) | -418,926 | 314,180 | -434,564 |
Total liabilities and stockholders' equity (deficiency) | 9,042,627 | 8,924,509 | ' |
Scenario, Adjustment [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Cash and cash equivalents | -191,259 | ' | ' |
Accounts receivable: | ' | ' | ' |
Trade receivables, net of allowance | -746,685 | ' | ' |
Due from factor | -116,762 | ' | ' |
Inventory | -192,245 | ' | ' |
Prepaid expenses and other current assets | -234,232 | ' | ' |
Prepaid royalties | 0 | ' | ' |
Current assets of discontinued operations | 1,481,183 | ' | ' |
Total current assets | 0 | ' | ' |
Other assets: | ' | ' | ' |
Property and equipment, net of accumulated depreciation | -418,460 | ' | ' |
Intangible assets, net of accumulated amortization | 0 | ' | ' |
Deposits and other assets | -453,752 | ' | ' |
Noncurrent assets of discontinued operations | 872,212 | ' | ' |
Total assets | 0 | ' | ' |
Current liabilities: | ' | ' | ' |
Accounts payable and accrued expenses | -2,960,378 | ' | ' |
Capital lease obligations, current | -324,802 | ' | ' |
Notes payable, current | -11,601 | ' | ' |
Deferred revenue | -158,359 | ' | ' |
Other liability | -143,304 | ' | ' |
Current liabilities of discontinued operations | 3,598,444 | ' | ' |
Total current liabilities | 0 | ' | ' |
Long term liabilities: | ' | ' | ' |
Capital lease obligations, long term | -113,415 | ' | ' |
Long term liabilities of discontinued operations | 113,415 | ' | ' |
Total liabilities | 0 | ' | ' |
Commitments and contingencies | ' | ' | ' |
Stockholders' equity (deficiency): | ' | ' | ' |
Preferred stock; $0.001 par value; 20,000,000 shares authorized; no shares issued and outstanding | 0 | ' | ' |
Common stock; $0.001 par value; 100,000,000 shares authorized; 17,600,242 and 16,970,465 shares issued and outstanding, respectively | 0 | ' | ' |
Additional paid-in capital | 0 | ' | ' |
Accumulated deficit | 0 | ' | ' |
Accumulated other comprehensive income | 0 | ' | ' |
Total stockholders' equity (deficiency) | 0 | ' | ' |
Total liabilities and stockholders' equity (deficiency) | 0 | ' | ' |
Pro Forma [Member] | ' | ' | ' |
Assets | ' | ' | ' |
Cash and cash equivalents | 1,884,667 | ' | ' |
Accounts receivable: | ' | ' | ' |
Trade receivables, net of allowance | 3,994,987 | ' | ' |
Due from factor | 0 | ' | ' |
Inventory | 0 | ' | ' |
Prepaid expenses and other current assets | 83,031 | ' | ' |
Prepaid royalties | 552,689 | ' | ' |
Current assets of discontinued operations | 1,481,183 | ' | ' |
Total current assets | 7,996,557 | ' | ' |
Other assets: | ' | ' | ' |
Property and equipment, net of accumulated depreciation | 108,914 | ' | ' |
Intangible assets, net of accumulated amortization | 55,235 | ' | ' |
Deposits and other assets | 9,709 | ' | ' |
Noncurrent assets of discontinued operations | 872,212 | ' | ' |
Total assets | 9,042,627 | ' | ' |
Current liabilities: | ' | ' | ' |
Accounts payable and accrued expenses | 5,749,694 | ' | ' |
Capital lease obligations, current | 0 | ' | ' |
Notes payable, current | 0 | ' | ' |
Deferred revenue | 0 | ' | ' |
Other liability | 0 | ' | ' |
Current liabilities of discontinued operations | 3,598,444 | ' | ' |
Total current liabilities | 9,348,138 | ' | ' |
Long term liabilities: | ' | ' | ' |
Capital lease obligations, long term | 0 | ' | ' |
Long term liabilities of discontinued operations | 113,415 | ' | ' |
Total liabilities | 9,461,553 | ' | ' |
Commitments and contingencies | ' | ' | ' |
Stockholders' equity (deficiency): | ' | ' | ' |
Preferred stock; $0.001 par value; 20,000,000 shares authorized; no shares issued and outstanding | 0 | ' | ' |
Common stock; $0.001 par value; 100,000,000 shares authorized; 17,600,242 and 16,970,465 shares issued and outstanding, respectively | 17,600 | ' | ' |
Additional paid-in capital | 15,406,033 | ' | ' |
Accumulated deficit | -15,858,656 | ' | ' |
Accumulated other comprehensive income | 16,097 | ' | ' |
Total stockholders' equity (deficiency) | -418,926 | ' | ' |
Total liabilities and stockholders' equity (deficiency) | $9,042,627 | ' | ' |
Subsequent_Events_Details_Pare
Subsequent Events (Details) [Parenthetical] (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 25, 2013 | Jul. 20, 2012 |
Preferred Stock Par Or Stated Value Per Share | $0.00 | $0.00 | ' | ' |
Preferred Stock Shares Authorized | 20,000,000 | 20,000,000 | ' | ' |
Preferred Stock Shares Issued | 0 | 0 | ' | ' |
Preferred Stock Shares Outstanding | 0 | 0 | ' | ' |
Common Stock Par Or Stated Value Per Share | $0.00 | $0.00 | ' | ' |
Common Stock Shares Authorized | 100,000,000 | 100,000,000 | ' | ' |
Common Stock Shares Issued | 17,600,242 | 16,970,465 | 3,922 | 17,844 |
Common Stock Shares Outstanding | 17,600,242 | 16,970,465 | ' | ' |
Subsequent_Events_Details_1
Subsequent Events (Details 1) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Revenue | $36,550,910 | $45,498,526 |
Cost of revenue | 28,204,613 | 35,948,380 |
Gross profit | 8,346,297 | 9,550,146 |
Operating expenses: | ' | ' |
Selling, general and administrative | 9,617,453 | 8,839,428 |
Depreciation and amortization | 507,678 | 590,922 |
Total operating expenses | 10,125,131 | 9,186,461 |
Income (loss) from operations | -1,778,834 | 363,685 |
Other income (expenses): | ' | ' |
Interest expense | -55,923 | -89,411 |
Other expense | -15,562 | -84,023 |
Total other expense | -71,485 | -173,434 |
Income (loss) before provision for income taxes | -1,850,319 | 190,251 |
Provision for income taxes | 16,099 | -1,671 |
Loss from continuing operations | -1,866,418 | ' |
Loss from discontinued operations | 0 | ' |
Net loss | -1,866,418 | 191,922 |
Other comprehensive income (loss): | ' | ' |
Foreign currency translation | -59,908 | 15,351 |
Comprehensive income (loss) | -1,926,326 | 207,273 |
Basic and diluted net loss per common share: | ' | ' |
Loss per share from continuing operations | ($0.11) | ' |
Weighted average shares outstanding: | ' | ' |
Basic | 17,230,311 | 17,123,460 |
Diluted | 17,230,311 | 17,262,652 |
Scenario, Adjustment [Member] | ' | ' |
Revenue | -8,067,735 | ' |
Cost of revenue | -5,174,950 | ' |
Gross profit | -2,892,785 | ' |
Operating expenses: | ' | ' |
Selling, general and administrative | -3,345,221 | ' |
Depreciation and amortization | -287,744 | ' |
Total operating expenses | -3,632,965 | ' |
Income (loss) from operations | 740,180 | ' |
Other income (expenses): | ' | ' |
Interest expense | 42,106 | ' |
Other expense | 0 | ' |
Total other expense | 42,106 | ' |
Income (loss) before provision for income taxes | 782,286 | ' |
Provision for income taxes | 0 | ' |
Loss from continuing operations | 0 | ' |
Loss from discontinued operations | -782,286 | ' |
Net loss | 0 | ' |
Other comprehensive income (loss): | ' | ' |
Foreign currency translation | 0 | ' |
Comprehensive income (loss) | 0 | ' |
Pro Forma [Member] | ' | ' |
Revenue | 28,483,175 | ' |
Cost of revenue | 23,029,663 | ' |
Gross profit | 5,453,512 | ' |
Operating expenses: | ' | ' |
Selling, general and administrative | 6,272,232 | ' |
Depreciation and amortization | 219,934 | ' |
Total operating expenses | 6,492,166 | ' |
Income (loss) from operations | -1,038,654 | ' |
Other income (expenses): | ' | ' |
Interest expense | -13,817 | ' |
Other expense | -15,562 | ' |
Total other expense | -29,379 | ' |
Income (loss) before provision for income taxes | -1,068,033 | ' |
Provision for income taxes | -16,099 | ' |
Loss from continuing operations | -1,084,132 | ' |
Loss from discontinued operations | -782,286 | ' |
Net loss | -1,866,418 | ' |
Other comprehensive income (loss): | ' | ' |
Foreign currency translation | -59,908 | ' |
Comprehensive income (loss) | ($1,926,326) | ' |
Basic and diluted net loss per common share: | ' | ' |
Loss per share from continuing operations | ($0.06) | ' |
Loss per share from discontinued operations | ($0.05) | ' |
Weighted average shares outstanding: | ' | ' |
Basic | 17,230,311 | ' |
Diluted | 17,230,311 | ' |
Subsequent_Events_Details_Text
Subsequent Events (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | ||||||
Jun. 30, 2014 | Jun. 30, 2013 | Sep. 15, 2014 | Aug. 18, 2014 | 19-May-14 | Sep. 06, 2013 | Jan. 28, 2014 | Nov. 22, 2013 | Aug. 18, 2014 | Aug. 18, 2014 | |
Subsequent Event [Member] | Subsequent Event [Member] | Restricted Common Stock [Member] | Restricted Common Stock [Member] | Restricted Common Stock [Member] | Restricted Common Stock [Member] | Restricted Common Stock [Member] | Stock Options [Member] | |||
Subsequent Event [Member] | Subsequent Event [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | '3 years | '3 years | '3 years | '3 years | '3 years | '3 years | ' |
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Gross | 223,953 | 387,898 | ' | 59,500 | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | ' | ' | ' | $44,500 | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 208,029 | 33,913 | ' | 262,500 | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Value, Restricted Stock Award, Gross | 353,320 | 62,787 | ' | 254,278 | ' | ' | ' | ' | ' | ' |
Sale of Stock, Price Per Share | ' | $1.85 | ' | $0.77 | ' | ' | ' | ' | ' | $0.77 |
Deconsolidation, Gain (Loss), Amount | ' | ' | $1,000,000 | ' | ' | ' | ' | ' | ' | ' |