Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2016 | Aug. 15, 2016 | Dec. 31, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Point.360 | ||
Entity Central Index Key | 1,398,797 | ||
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 | $ 1.6 | ||
Trading Symbol | PTSX | ||
Entity Common Stock, Shares Outstanding | 12,630,506 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 49 | $ 22 |
Accounts receivable, net of allowances for doubtful accounts of $249 and $293, respectively | 4,729 | 3,067 |
Inventories, net | 127 | 135 |
Prepaid expenses and other current assets | 498 | 315 |
Total current assets | 5,403 | 3,539 |
Property and equipment, net | 13,924 | 9,226 |
Other assets, net | 1,215 | 615 |
Total assets | 20,542 | 13,380 |
Current liabilities: | ||
Current portion of notes payable | 5,142 | 5,062 |
Current portion of capital lease obligations | 102 | 55 |
Accounts payable | 838 | 714 |
Accrued wages and benefits | 2,057 | 972 |
Other accrued expenses | 188 | 26 |
Current portion of deferred gain on sale of real estate | 178 | 178 |
Current portion of deferred lease incentive | 209 | 209 |
Total current liabilities | 8,714 | 7,216 |
Capital lease obligations, less current portion | 79 | 88 |
Deferred gain on sale of real estate, less current portion | 668 | 846 |
Deferred lease incentive, less current portion | 783 | 992 |
Notes payable, less current portion | 5,868 | 0 |
Total long-term liabilities | 7,398 | 1,926 |
Total liabilities | 16,112 | 9,142 |
Commitments and contingencies (Note 7) | ||
Shareholders’ equity: | ||
Preferred stock - no par value; 5,000,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock - no par value; 50,000,000 shares authorized; 10,536,906 and 12,630,506 shares issued and outstanding on June 30, 2015 and June 30, 2016, respectively | 22,924 | 21,715 |
Additional paid-in capital | 11,916 | 11,175 |
Accumulated deficit | (30,410) | (28,652) |
Total shareholders’ equity | 4,430 | 4,238 |
Total liabilities and shareholders’ equity | $ 20,542 | $ 13,380 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Accounts receivable, allowances for doubtful accounts | $ 293 | $ 249 |
Preferred stock, no par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, no par value | $ 0 | $ 0 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 12,630,506 | 10,536,906 |
Common stock, shares outstanding | 12,630,506 | 10,536,906 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Revenues | $ 37,570 | $ 21,581 | $ 25,733 |
Cost of services sold | (29,244) | (14,206) | (17,347) |
Gross profit | 8,326 | 7,375 | 8,386 |
Selling, general and administrative expense | (17,235) | (10,329) | (11,336) |
Operating loss | (8,909) | (2,954) | (2,950) |
Interest expense | (544) | (256) | (285) |
Gain on bargain purchase | 4,099 | 0 | 0 |
Other income | 887 | 324 | 588 |
Loss before income taxes | (4,467) | (2,886) | (2,647) |
(Provision for) benefit from income tax | 2,709 | 0 | (3) |
Net loss | $ (1,758) | $ (2,886) | $ (2,650) |
Basic and diluted loss per share | $ (0.14) | $ (0.27) | $ (0.25) |
Weighted average number of shares (Basic) | 12,535 | 10,537 | 10,533 |
Weighted average number of shares (Diluted) | 12,535 | 10,537 | 10,533 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] |
Balance at Jun. 30, 2013 | $ 9,219 | $ 21,695 | $ 10,641 | $ (23,117) |
Balance (in Shares) at Jun. 30, 2013 | 10,513,000 | |||
Stock option exercises | $ 20 | $ 20 | 0 | 0 |
Stock option exercises (in Shares) | 23,740 | 24,000 | ||
Share based compensation expense | $ 272 | $ 0 | 272 | 0 |
Net loss | (2,650) | 0 | 0 | (2,650) |
Balance at Jun. 30, 2014 | $ 6,861 | $ 21,715 | 10,913 | (25,767) |
Balance (in Shares) at Jun. 30, 2014 | 10,537,000 | |||
Stock option exercises (in Shares) | 0 | |||
Share based compensation expense | $ 263 | $ 0 | 263 | 0 |
Net loss | (2,886) | 0 | 0 | (2,886) |
Balance at Jun. 30, 2015 | 4,238 | $ 21,715 | 11,176 | (28,653) |
Balance (in Shares) at Jun. 30, 2015 | 10,537,000 | |||
Share issuance for assets | 1,417 | $ 1,155 | 262 | 0 |
Share issuance for assets (in Shares) | 2,000,000 | |||
Warrant issuance for Term Loan | 165 | $ 0 | 165 | 0 |
Stock option exercises | $ 54 | $ 54 | 0 | 0 |
Stock option exercises (in Shares) | 93,600 | 94,000 | ||
Share based compensation expense | $ 313 | $ 0 | 313 | 0 |
Net loss | (1,758) | 0 | 0 | (1,758) |
Balance at Jun. 30, 2016 | $ 4,430 | $ 22,924 | $ 11,916 | $ (30,410) |
Balance (in Shares) at Jun. 30, 2016 | 12,631,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | |||
Net loss | $ (1,758) | $ (2,886) | $ (2,650) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Gain on sale of equipment or real estate | 0 | 0 | 18 |
Gain on bargain purchase | (4,099) | 0 | 0 |
Income tax benefit - deferred | (2,714) | 0 | 0 |
Depreciation and amortization | 2,176 | 1,363 | 1,841 |
Amortization of deferred gain on sale of real estate | (179) | (179) | (178) |
Amortization of deferred lease credit | (208) | (209) | (208) |
Provision for (recovery of) doubtful accounts | (145) | 21 | (99) |
Share based compensation expense | 313 | 263 | 272 |
Issuance of common stock | 54 | 0 | 20 |
Changes in operating assets and liabilities (net of acquisitions): | |||
Decrease in accounts receivable | 1,556 | 343 | 1,377 |
Decrease in inventories | 108 | 95 | 85 |
(Increase) decrease in prepaid expenses and other current assets | (174) | (85) | 22 |
(Increase) decrease in other assets | (170) | 23 | 48 |
(Decrease) increase in accounts payable | 124 | (319) | (269) |
(Decrease) increase in accrued wages and benefits | 315 | (48) | (298) |
(Decrease) in other accrued expenses and other long term liabilities | 162 | (9) | (21) |
Net cash and cash equivalents used in operating activities | (4,639) | (1,627) | (40) |
Cash flows from investing activities: | |||
Capital expenditures | (1,306) | (416) | (380) |
Proceeds from sale of equipment or real estate | 0 | 0 | 4,457 |
Net cash and cash equivalents (used in) provided by investing activities | (1,306) | (416) | 4,077 |
Cash flows from financing activities: | |||
Borrowings from revolving credit agreement | 302 | 124 | 0 |
Borrowings of notes payable | 6,000 | 0 | 0 |
Net repayment on notes payable | (221) | (221) | (3,214) |
Net repayment on capital lease obligations | (109) | (184) | (173) |
Net cash and cash equivalents provided by (used in) financing activities | 5,972 | (281) | (3,387) |
Net increase (decrease) in cash and cash equivalents | 27 | (2,324) | 650 |
Cash and cash equivalents at beginning of year | 22 | 2,346 | 1,696 |
Cash and cash equivalents at end of year | 49 | 22 | 2,346 |
Cash payments for income taxes (net of refunds) | 5 | 0 | 5 |
Cash payments for interest | 502 | 252 | 284 |
Assets acquired through capital lease | 119 | 170 | 116 |
Purchase of assets for common stock and warrants | 1,417 | 0 | 0 |
Non-cash deferred interest expense | $ 165 | $ 0 | $ 0 |
THE COMPANY
THE COMPANY | 12 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | |
THE COMPANY | 1. THE COMPANY Point.360 and subsidiaries (the “Company,” “we” or “our”) provides high definition and standard definition digital mastering, data conversion, video and film asset management, distribution and other services to owners, producers and distributors of entertainment and advertising content. The Company provides the services necessary to edit, master, reformat, convert, archive and ultimately distribute its clients’ film and video content, including television programming feature films and movie trailers. The Company’s interconnected facilities provide service coverage to all major U.S. media centers. Clients include major motion picture studios and independent producers. The Company also rents and sells DVDs directly to consumers through its Movie>Q retail stores. In July 2015, the Company completed the purchase of assets formerly owned by Modern VideoFilm, Inc. by issuing shares of its common stock and warrants to purchase shares of the Company’s common stock. As a result of the transaction, the Company added post-production service capabilities and expanded its client base comprising major studios, broadcast networks, cable outlets, streaming media companies, independent producers and others. The Company operates in two business segments from three post production and three Movie>Q locations. Each post production location is electronically tied to the others and serves the same customer base. Depending on the location size, the production equipment consists of tape duplication, editing, encoding, standards conversion, and other machinery. Each location employs personnel with the skills required to efficiently run the equipment and handle customer requirements. While all locations are not exactly the same, an order received at one location may be fulfilled at one or more “sister” facilities to use resources in the most efficient manner. Typically, a feature film or television show or related material will be submitted to a facility by a motion picture studio, independent producer, advertising agency, or corporation for processing and distribution. A common sales force markets the Company’s capabilities for all facilities. Once an order is received, the local customer service representative determines the most cost-effective way to perform the services considering geographical logistics and facility capabilities. In fiscal 2010, the Company purchased assets and intellectual property for a research and development project to address the viability of the DVD rental business being abandoned by the closure of Movie Gallery/Hollywood Video and Blockbuster stores. The DVD rental market consists principally of online services (Netflix), vending machines (Redbox) and other video stores. As of June 30, 2016, the Company had opened three Movie>Q stores in Southern California. The stores employ an automated inventory management (“AIM”) system in a 1,200 1,600 10,000 The accompanying Consolidated Financial Statements include the accounts and transactions of the Company, including those of the Company’s subsidiaries. The statements have been prepared in accordance with accounting principles generally accepted in the United States of America and by the Securities and Exchange Commission’s rules and regulations for reporting financial statements and footnotes. All intercompany balances and transactions have been eliminated in the Consolidated Financial Statements. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash equivalents represent highly liquid short-term investments with original maturities of less than three months when purchased. We perform a multitude of services for our clients, including film-to-tape transfer, video and audio editing, standards conversions, adding special effects, duplication, distribution, etc. A customer orders one or more of these services with respect to an element (movie, television show, etc.). The sum total of services performed on a particular element (a “package”) becomes the deliverable (i.e., the customer will pay for the services ordered in total when the entire job is completed). Occasionally, a major studio will request that package services be performed on multiple elements. Each element creates a separate revenue stream which is recognized only when all requested services have been performed on that element. At the end of an accounting period, revenue is accrued for un-invoiced but shipped work. Certain jobs specify that many discrete tasks must be performed which require up to four months to complete. In such cases, we use the proportional performance method for recognizing revenue. Under the proportional performance method, revenue is recognized based on the value of services already completed on each specific element. In some instances, a client will request that we store (or “vault”) an element for a period ranging from a day to indefinitely. The Company attempts to bill customers a nominal amount for storage, but some customers, especially major movie studios, will not pay for this service. In the latter instance, storage is an accommodation to foster additional business with respect to the related element. It is impossible to estimate (i) the length of time we may house the element, or (ii) the amount of additional services we may be called upon to perform on an element. We do not treat vaulting as a separate deliverable in those instances in which the customer does not pay. The Company records all revenues when all of the following criteria are met: (i) there is persuasive evidence that an arrangement exists; (ii) delivery has occurred or the services have been rendered; (iii) the Company’s price to the customer is fixed or determinable; and (iv) collectability is reasonably assured. Additionally, in instances where package services are performed on multiple elements or where the proportional performance method is applied, revenue is recognized based on the value of each stand-alone service completed. We are required to make judgments, based on historical experience and future expectations, as to the collectability of accounts receivable. The allowances for doubtful accounts represent allowances for customer trade accounts receivable that are estimated to be partially or entirely uncollectible. These allowances are used to reduce gross trade receivables to their net realizable value. The Company records these allowances as a charge to selling, general and administrative expenses based on estimates related to the following factors: (i) customer specific allowance; (ii) amounts based upon an aging schedule and (iii) an estimated amount, based on the Company’s historical experience, for issues not yet identified. As part of the process of preparing our consolidated financial statements, we are required to estimate our income taxes in each of the jurisdictions in which we operate. This process involves us estimating our actual current tax exposure together with assessing temporary differences resulting from differing treatment of items, such as deferred revenue, for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included within our consolidated balance sheet. We must then assess the likelihood that our deferred tax assets will be recovered from future taxable income and to the extent we believe that recovery is not likely, we must establish a valuation allowance. To the extent we establish a valuation allowance or increase this allowance in a period, we must include an expense within the tax provision in the consolidated statements of operations. At June 30, 2016, the Company has no uncertain tax positions. Significant management judgment is required in determining our provision for income taxes, our deferred tax assets and liabilities and any valuation allowance recorded against our net deferred tax assets. The deferred tax assets are fully reserved at June 30, 2015 and June 30, 2016. Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, and accounts receivable. The Company maintains its cash and cash equivalents with high credit quality financial institutions; at times, such balances with any one financial institution may exceed FDIC insured limits, which was the case as of June 30, 2016. Credit risk with respect to trade receivables is concentrated due to the large number of orders with major entertainment studios in any particular reporting period. Our five largest studio customers represented 61 52 17 5 27 27 12 4 The five largest studio customers accounted for 69 68 63 25 23 17 15 14 6 22 24 23 Inventories comprise raw materials, principally tape stock, and DVD’s, and are stated at the lower of cost or market. Cost is determined using the average cost method. The rental library for the Movie>Q stores consists of DVD’s available for rental by customers. Because of the DVD’s relatively short useful lives, we view these assets to be current assets. We utilize the accelerated method of depreciation because it approximates the demand for the product. A nominal residual value is established. Movie>Q depreciation expense totaled $ 144,000 141,000 126,000 Property and equipment are stated at cost. Expenditures for additions and major improvements are capitalized. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Amortization of leasehold improvements is computed using the straight-line method over the lesser of the estimated useful lives of the improvements or the remaining lease term. Operating leases are accounted for in accordance with FASB Accounting Standard Codification Topic 840, “ Accounting for Leases Advertising costs are not significant to the Company’s operations and are expensed as incurred. The Company follows a framework for consistently measuring fair value under generally accepted accounting principles, and the disclosures of fair value measurements. The framework provides a fair value hierarchy to classify the source of the information. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value and include the following: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Cash and cash equivalents, the only Level 1 input applicable to the Company (there are no Level 2 or 3 inputs), is stated on the Consolidated Balance Sheets at fair value. As of June 30, 2015 and 2016, the carrying value of accounts receivable, accounts payable, accrued expenses and other liabilities approximates fair value due to the short-term nature of such instruments. The carrying value of notes payable, capital lease obligations, and other long-term liabilities approximates fair value as the related interest rates approximate rates currently available to the Company. Factors we consider important which could trigger an impairment review include the following: · Significant underperformance relative to expected historical or projected future operating results; · Significant changes in the manner of our use of the acquired assets or the strategy of our overall business; · Significant negative industry or economic trends; · Significant decline in our stock price for a sustained period; and · Our market capitalization relative to net book value. When we determine that the carrying value of long-lived assets may not be recoverable based upon the existence of one or more of the above indicators of impairment, we measure any impairment based on comparing the carrying amount of the asset to its fair value in a current transaction between willing parties or, in the absence of such measurement, on a projected discounted cash flow method using a discount rate determined by our management to be commensurate with the risk inherent in our current business model. Any amount of impairment so determined would be written off as a charge to the statement of operations, together with an equal reduction of the related asset. Net long-lived assets amounted to approximately $ 14.2 As of June 30, 2016, we compared the book value of our building ($ 7.7 6.2 Year ended June 30, 2014 $ (40,000) Year ended June 30, 2015 $ (1,627,000) Year ended June 30, 2016 $ (4,639,000) We also considered the Company’s closing stock price which ranged from $ 0.12 1.35 0.68 We have also considered the evolution of our production work from physical to file-based formats. This trend is expected to continue, and we have taken and will continue to take, steps to consolidate facilities and realign capabilities which have enhanced operating cash flow. While this evolution will create uncertainties which may result in a material future impairment, we do not believe such impairment exists, and that further impairment testing is not required, for the year ended June 30, 2016. Long-lived assets, consisting primarily of property and equipment, comprise a significant portion of the Company’s total assets. Long-lived assets are reviewed for impairment whenever events or changes in circumstances have indicated that their carrying amounts may not be recoverable. Recoverability of assets is measured by comparing the carrying amount of an asset to its fair value in a current transaction between willing parties, other than in a forced liquidation sale. In fiscal 2010, the Company acquired assets and technology from Kiosk Concepts, LLC and DVDs on the Run, Inc. for use in developing the Movie>Q proof of concept. The assets included (i) vending machine type kiosks and related machinery, and (ii) an automated DVD management system. The Movie>Q R&D project evaluated the capabilities and potential economics of both models. In 2010, the Company opened three Movie>Q stores incorporating the automated inventory management (AIM) system while further investigating potential uses of the kiosk assets. On March 31, 2011, the Company determined that the AIM system would be used exclusively for Movie>Q, and that the kiosk assets of the Movie>Q business segment were impaired for accounting purposes. For purposes of impairment testing under ASC 360, we considered potential cash flows from the kiosk assets. Since the decision was made to use the AIM system, and because the kiosk assets were easily separable from both the AIM assets and the chosen Movie>Q business model, separate kiosk cash flow evaluation was deemed appropriate. The kiosks are specialty retail machines that could conceivably be employed by the Company or another entity to compete with the Redbox-type business, but the kiosks were significantly larger than the Redbox version, required software development to become functional, and would require potentially large expenditures to ship them to a buyer. Because of these factors and our inability to attract a buyer, we deemed the potential cash flow from the kiosks to be negligible to zero, and that the salvage value is zero. Due to the specialized nature of the assets, management’s decision not to use the kiosk assets in Movie>Q, no perceived alternative use for the assets, and no indicated market value for the assets, management determined that the kiosk assets were fully impaired and recorded an impairment loss of $ 684,000 There were no impairment charges during the fiscal years ended June 30, 2014, 2015, and 2016. The Company has historically followed Accounting Standards Codification No. 260, “Earnings per Share” (“ASC 260”), and related interpretations for reporting earnings per share. ASC 260 requires dual presentation of basic earnings per share (“Basic EPS”) and diluted earnings per share (“Diluted EPS”). Basic EPS excludes dilution and is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the reported period. Diluted EPS reflects the potential dilution that could occur if a company had a stock option plan and stock options were exercised using the treasury stock method. Year Ended 2014 2015 2016 Weighted average number of common shares outstanding used in computation of basic EPS 10,533 10,537 12,535 Dilutive number of outstanding stock options - - - Weighted average number of common and potential common shares outstanding used in computation of Diluted EPS 10,533 10,537 12,535 Number of dilutive options excluded in the computation of diluted EPS due to net loss 71 4 464 The weighted average number of common shares outstanding was the same amount for both basic and diluted income or loss per share in the 2014 and 2015 periods presented. The effect of potentially dilutive securities for the 2014, 2015 and 2016 periods was excluded from the computation of diluted earnings per share because the Company reported a net loss, and the effect of inclusion would be anti-dilutive (i.e., including such securities would result in a lower loss per share). The number of anti-dilutive shares were 0, 30,000 and 1,114,000 as of June 30, 2014, 2015 and 2016, respectively. New Accounting Updates Recently Adopted In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes Recent Accounting Standards or Updates Not Yet Effective In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | 3. PROPERTY AND EQUIPMENT In March 2006, the Company entered into a sale and leaseback transaction with respect to its Media Center real estate. The real estate was sold for approximately $ 14.0 1.3 15 250,000 The lease is treated as an operating lease for financial reporting purposes. After the initial lease term, the Company has four five-year options to extend the lease. Minimum annual rent payments for the initial five years of the lease were $ 1,111,000 In June 2011, the Company entered into a lease amendment with respect to the Company’s Media Center facility. The amendment provided that the landlord would reimburse the Company up to $2 million for the leasehold improvements to be made by the Company to the premises. The leasehold improvements would be recorded as a fixed asset and amortized over the remaining term of the lease (until March 2021). Pursuant to the lease amendment, the Company’s monthly lease costs increased by approximately $27,000 on April 1, 2012. The Company incurred $ 2.1 2.0 June 30, 2015 2016 Land $ 2,405,000 $ 2,405,000 Buildings 6,012,000 6,471,000 Machinery and equipment 38,308,000 43,634,000 Leasehold improvements 8,761,000 9,071,000 Computer equipment 8,005,000 8,273,000 Equipment under capital lease 1,102,000 1,221,000 Office equipment, vehicles 507,000 813,000 CIP 104,000 2,000 Subtotal 65,204,000 71,890,000 Less accumulated depreciation and amortization (55,978,000) (57,966,000) Property and equipment, net $ 9,226,000 $ 13,924,000 Depreciation is expensed over the estimated lives of buildings (39 years), machinery and equipment (7 years), computer equipment (7 years) and leasehold improvements (2 to 10 years depending on the remaining term of the respective leases or estimated useful life of the improvement). Depreciation expense totaled $1,841,000, $1,363,000 and $2,175,000 for the years ended June 30, 2014, 2015 and 2016, respectively. Property under capital leases pertains to machinery and equipment, with a cost of $1,102,000 (with a net book value of $160,000) and $1,221,000 (with a net book value of $137,000) as of June 30, 2015 and 2016, respectively. |
401(K) PLAN
401(K) PLAN | 12 Months Ended |
Jun. 30, 2016 | |
Benefit Plan Four Zero One K [Abstract] | |
401(K) PLAN | 4. 401(K) PLAN The Company has a 401(K) plan, which covers substantially all employees. Each participant is permitted to make voluntary contributions not to exceed the lesser of 20% of his or her respective compensation or the applicable statutory limitation, and is immediately 100% vested. The Company matches one-fourth of the first 4% contributed by the employee. Contributions to the plan related to employees of the Company were $68,000, $55,000, and $120,000 in the years ended June 30, 2014, 2015 and 2016, respectively. |
LONG TERM DEBT, NOTES PAYABLE,
LONG TERM DEBT, NOTES PAYABLE, AND CAPITAL LEASE OBLIGATIONS | 12 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
LONG TERM DEBT, NOTES PAYABLE, AND CAPITAL LEASE OBLIGATIONS | 5. LONG TERM DEBT, NOTES PAYABLE, AND CAPITAL LEASE OBLIGATIONS In August and September of 2012 (subsequently modified on December 18, 2013, September 5, 2014, and January 27, 2015), the Company entered into revolving credit, equipment financing and two mortgage agreements with a bank, as follows: Revolving Credit Facility. The revolving credit facility previously provided up to $ 2 Equipment Financing Facility. The equipment financing facility previously provided up to $ 1.25 0.2 Hollywood Way and Vine Street Mortgages. The Company entered into two real estate term loan agreements with respect to its Hollywood Way and Vine Street locations for $ 5.5 3.1 4.7 Amounts due under the mortgage are secured by the related real estate. Until January 27, 2015, while amounts were outstanding under the credit arrangements described above, the Company was subject to minimum tangible net worth (TNW), EBITDA, and fixed charge ratio financial covenants. See below for changes in the covenant requirements occurring on that date. As of September 30, 2014 the Company did not meet the TNW, the minimum quarterly EBITDA, and the minimum quarterly and TTM fixed charge ratio covenants. Availability under the revolving credit facility was canceled in December 2014. On January 27, 2015, the bank waived the Company’s breach of financial covenants as of September 30, 2014. Concurrently, the bank eliminated the previously mentioned financial covenant requirements effective with the quarter ended December 31, 2014 and imposed a new covenant requiring that, effective June 30, 2015, the Company shall maintain a ratio of EBITDA (as defined) to the sum of interest expense and the current portion of long term debt of not less than 1.0 to 1, to be measured semi-annually. Interest expense was measured on June 30, 2015 on a calendar year to date basis. Commencing on December 31, 2015 and thereafter, EBITDA and interest expense will be measured at the end of each calendar half-year on the basis of the preceding twelve months. On June 30, 2016, the Company did not meet the new fixed charge ratio covenant. In February 2015, the Company entered into a two-year $ 2 80 0.45 5.4 5,000 0.4 In July 2016, the Company entered into a three-year $4 million credit agreement based on 80 0.42 5.0 20,000 Due to the Company’s failure to meet financial covenants, the balance owed for the mortgage debt has been classified as a current liability in the consolidated balance sheet as of June 30, 2016. In connection with the purchase of the assets of Modern VideoFilm, Inc. on July 8, 2015, the Company entered into a Term Loan Agreement (the “Loan Agreement”) with the Lenders. The Loan Agreement is comprised of a five-year term loan facility in the amount of $ 6,000,000 1,000,000 We must pay monthly interest in arrears on the unpaid principal balance of the Term Loan at a rate per annum equal to three-month LIBOR plus 6.00% (6.65% as of June 30, 2016). At the Company's election, interest may be paid as “payment in kind” by adding such accrued interest to the unpaid principal balance of the Term Loan. The outstanding principal balance and all accrued and unpaid interest on the Term Loan are due and payable on July 8, 2020. We may voluntarily prepay outstanding Term Loan from time to time in whole or in part without penalty or premium. 2017 $ 5,244,000 2018 60,000 2019 19,000 2020 - 2021 6,000,000 Thereafter - $ 11,323,000 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 6. INCOME TAXES The Company reviewed its ASC 740-10 tax documentation for the periods through June 30, 2016 to ascertain if any changes should be made with respect to tax positions previously taken. In addition, the Company reviewed its income tax reporting through June 30, 2016. Based on the Company’s review of its tax positions as of June 30, 2015 and 2016, no new uncertain tax positions have been determined; nor has new information become available that would change management’s judgment with respect to tax positions previously taken. As of June 30, 2016, the Company's net deferred tax assets were nil. No tax benefit was recorded during the year ended June 30, 2016 because future realizability of such benefit was not considered to be more likely than not. At June 30, 2015 and 2016, the Company had gross deferred tax assets of $ 11.5 13.2 11.5 13.2 The Accounting Standards Codification prescribes a recognition and measurement of a tax position taken or expected to be taken in a tax return and provides guidance on derecognition of tax benefits, classification on the balance sheet, interest and penalties, accounting in interim periods, disclosure, and transition. The Company files income tax returns in the U.S. federal jurisdiction, and various state jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal state or local income tax examinations by tax authorities for years before 2008. The Company has analyzed its filing positions in all of the federal and state jurisdictions where it is required to file income tax returns. The Company’s provision for, or benefit from, income taxes has been determined as if the Company filed income tax returns on a stand-alone basis. Year Ended 2013 2015 2016 Current tax expense: Federal $ - $ - $ - State 3 - 5 Total current 3 - 5 Deferred tax (benefit) expense: Federal (873) (826) (1,383) State (204) (267) (394) Valuation allowance 1,077 1,093 1,777 Total deferred - - - Total provision for income taxes $ 3 $ - $ 5 2014 2015 2016 Accrued liabilities $ 208,000 $ 68,000 $ 27,000 Allowance for doubtful accounts 97,000 106,000 (184,000) Other 7,000 5,000 (131,000) Total current deferred tax assets 312,000 179,000 (288,000) Property and equipment 979,000 1,349,000 (537,000) Goodwill and other intangibles 573,000 477,000 275,000 Net operating loss carry forward 7,929,000 9,104,000 13,734,000 Other 575,000 352,000 54,000 Valuation allowance (10,368,000) (11,461,000) (13,238,000) Total non-current deferred tax liabilities (312,000) (179,000) 288,000 Net deferred tax liability $ - $ - $ - At the end of each fiscal year, the Company updates its reconciliation of book and tax differences based on the tax return of the previous fiscal year filed with the Internal Revenue Service in the third quarter of the current fiscal year. Any resulting adjustments are reflected in the table above in the fiscal year in which the adjustments were determined. Year Ended 2014 2015 2016 Federal tax computed at statutory rate 34 % 34 % 34 % State taxes, net of federal benefit and net operating loss limitation 7 % 4 % 6 % Permanent difference 0 % 0 % 0 % Excess tax benefit for goodwill 0 % 0 % 0 % Valuation allowance (41) % (38) % (40) % Other (meals and entertainment) 0 % 0 % 0 % Tax provision 0 % 0 % 0 % |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 7. COMMITMENTS AND CONTINGENCIES Operating Leases 2017 $ 3,095,000 2018 2,333,000 2019 1,608,000 2020 1,608,000 2021 1,206,000 Thereafter - Total minimum payments required $ 9,850,000 *Minimum payments have not been reduced by minimum sublease rentals for $ 1,422,000 Year Ended 2014 2015 2016 Rent Expense: $ 1,666,000 $ 1,533,000 $ 3,018,000 Less: Sublease rentals (299,000) (299,000) (299,000) $ 1,367,000 $ 1,234,000 $ 2,719,000 As of June 30, 2016, the Company leased five of its six facilities under operating leases. The operating leases expire on dates ranging from 2016 to 2021. The lease on the Company’s Media Center location contains an option to extend the primary term in five-year increments for up to 20 16,000 25,000 The Company’s vehicle and data processing equipment operating leases expire by 2017. In most cases, management expects that in the normal course of business, leases will be renewed or replaced by other leases. Severance Agreements On September 30, 2003 Point.360 entered into severance agreements with its Chief Executive Officer and Chief Financial Officer which continue in effect through December 31, 2016, and are renewed automatically on an annual basis thereafter unless notice is received terminating the agreement by September 30 of the preceding year. The severance agreements contain a “Golden Parachute” provision. Contingencies From time to time, the Company may become a party to other legal actions and complaints arising in the ordinary course of business, although it is not currently involved in any such material legal proceedings. |
STOCK OPTION PLAN, STOCK-BASED
STOCK OPTION PLAN, STOCK-BASED COMPENSATION | 12 Months Ended |
Jun. 30, 2016 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
STOCK OPTION PLAN, STOCK-BASED COMPENSATION | 8. STOCK OPTION PLAN, STOCK-BASED COMPENSATION In May 2007, the Board of Directors approved the 2007 Equity Incentive Plan (the “2007 Plan”). The 2007 Plan provides for the award of options to purchase up to 2,000,000 In November 2010, the shareholders approved the 2010 Incentive Plan (the “2010 Plan”). The 2010 Plan provides for the award of options to purchase up to 4,000,000 Under the 2007 and 2010 Plans, the stock option price per share for options granted is determined by the Board of Directors and is based on the market price of the Company’s common stock on the date of grant, and each option is exercisable within the period and in the increments as determined by the Board, except that no option can be exercised later than ten years from the grant date. The stock options generally vest in one to five years. The Company measures and recognizes compensation expense for all share-based payment awards made to employees and directors based on estimated fair values. We also estimate the fair value of the award that is ultimately expected to vest to be recognized as expense over the requisite service periods in our Consolidated Statements of Operations. We estimate the fair value of share-based payment awards to employees and directors on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s Consolidated Statements of Operations. Share-based compensation expense recognized in the Consolidated Statements of Operations for the years ended June 30, 2014, 2015 and 2016 included compensation expense for the share-based payment awards based on the grant date fair value. For stock-based awards issued to employees and directors, share-based compensation is attributed to expense using the straight-line single option method. As stock-based compensation expense recognized in the Consolidated Statements of Operations for the periods reported in this Form 10-K is based on awards expected to vest, forfeitures are also estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. For the periods being reported in this Form 10-K, expected forfeitures are immaterial. The Company will re-assess the impact of forfeitures if actual forfeitures increase in future quarters. Share-based compensation expense related to employee or director stock options recognized for the years ended June 30, 2014, 2015 and 2016 were $272,000, $263,000 and $313,000, respectively. The Company’s determination of fair value of share-based payment awards to employees and directors on the date of grant uses the Black-Scholes model, which is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables. These variables include, but are not limited to, the expected stock price volatility over the expected term of the awards, and actual and projected employee stock options exercise behaviors. The Company estimates expected volatility using historical data. The expected term is estimated using the “safe harbor” provisions provided by the SEC. During the fiscal years ended June 30, 2014, 2015 and 2016, the Company granted awards of stock options as follows: 2014 2015 2016 Stock option awards 610,600 644,900 739,000 Weighted average Exercise price $ 0.50 $ 0.45 $ 0.88 As of June 30, 2016, there were options outstanding to acquire 2,961,576 shares at an average exercise price of $0.72 per share. The estimated fair value of all awards granted during the years ended June 30, 2014, 2015 and 2016 were $240,000, $275,000 and $595,000, respectively. The fair value of each option was estimated on the date of grant using the Black-Scholes optionpricing model with the following weighted average assumptions: 2014 2015 2016 Risk-free interest rate 1.53 % 1.53 % 1.23 % Expected term (years) 5.0 5.0 5.0 Volatility 108 % 159 % 145 % Expected annual dividends - - - The following table summarizes the status of the 2007 and 2010 Plans as of June 30, 2016: 2007 Plan 2010 Plan Total Options originally available 2,000,000 4,000,000 6,000,000 Stock options outstanding 1,922,075 1,039,275 2,961,350 Options available for grant 22,160 2,887,150 2,909,310 Transactions involving stock options are summarized as follows: Number Weighted Average Weighted Average Balance at June 30, 2013 2,413,525 $ 0.95 $ 0.53 Granted 610,600 $ 0.50 $ 0.40 Exercised (23,740) $ 0.85 $ 0.52 Cancelled (343,037) $ 0.95 $ 0.44 Balance at June 30, 2014 2,657,348 $ 0.83 $ 0.52 Granted 644,900 $ 0.45 $ 0.43 Exercised - - - Cancelled (367,188) $ 1.69 $ 0.56 Balance at June 30, 2015 2,935,060 $ 0.70 $ 0.49 Granted 739,000 $ 0.88 $ 0.80 Exercised (93,600) $ 0.59 $ 0.42 Cancelled (619,110) $ 0.68 $ 0.50 Balance of June 30, 2016 2,961,350 $ 0.72 $ 0.57 As of June 30, 2016, the total compensation costs related to non-vested awards yet to be expensed was approximately $0.8 million, and this amount is expected to be fully amortized over the next four years. The weighted average exercise prices for options granted and exercisable and the weighted average remaining contractual life for options outstanding as of June 30, 2014, 2015 and 2016 were as follows: Number of Weighted Average Weighted Average Intrinsic As of June 30, 2014 Employees Outstanding 2,514,848 $ 0.82 2.93 $ - Employees Expected to Vest 2,263,363 $ 0.82 2.93 $ - Employees Exercisable 1,068,411 $ 0.97 1.86 $ - Non-Employees Outstanding 142,500 $ 0.96 2.47 $ - Non-Employees Vested 123,750 $ 0.99 2.28 $ - Non-Employees Exercisable 123,750 $ 0.99 2.28 $ - As of June 30, 2015 Employees Outstanding 2,785,060 $ 0.70 2.76 $ - Employees Expected to Vest 2,506,534 $ 0.70 2.76 $ - Employees Exercisable 1,303,266 $ 0.81 1.72 $ - Non-Employees-Outstanding 150,000 $ 0.80 2.36 $ 1,200 Non-Employees-Vested 142,500 $ 0.81 2.30 $ 1,200 Non-Employees-Exercisable 142,500 $ 0.81 2.30 $ 1,200 As of June 30, 2016 Employees Outstanding 2,818,850 $ 0.72 2.88 $ 207,312 Employees Expected to Vest 2,536,965 $ 0.72 2.88 $ 186,581 Employees Exercisable 1,184,975 $ 0.74 1.86 $ 65,786 Non-Employees Outstanding 142,500 $ 0.75 2.53 $ 14,100 Non-Employees Vested 142,500 $ 0.75 2.53 $ 14,100 Non-Employees Exercisable 142,500 $ 0.75 2.53 $ 14,100 The aggregate intrinsic value in the table above is the sum of the amounts by which the quoted market price of our common stock exceeded the exercise price of the options at June 30, 2016, for those options for which the quoted market price was in excess of the exercise price. Additional information with respect to outstanding options as of June 30, 2016 is as follows: Options Outstanding Options Exercisable Options Exercise Number of Weighted Weighted Number of Weighted $ 1.07 22,500 0.42 years $ 1.07 22,500 0.42 years $ 1.04 30,000 4.37 years $ 1.04 30,000 4.37 years $ 1.00 65,000 4.19 years $ 1.00 - 4.19 years $ 0.95 227,825 0.71 years $ 0.95 227,825 0.71 years $ 0.88 631,250 4.67 years $ 0.88 - 4.67 years $ 0.81 808,325 1.61 years $ 0.81 606,600 1.61 years $ 0.80 22,500 1.36 years $ 0.80 22,500 1.36 years $ 0.74 22,500 2.35 years $ 0.74 22,500 2.35 years $ 0.64 15,000 2.37 years $ 0.64 15,000 2.37 years $ 0.57 5,000 3.19 years $ 0.57 5,000 3.19 years $ 0.50 476,400 2.60 years $ 0.50 193,725 2.60 years $ 0.48 605,050 3.62 years $ 0.48 151,825 3.62 years $ 0.23 30,000 3.35 years $ 0.23 30,000 3.35 years In addition, the Company issued 10,000 shares of restricted stock from the 2007 Plan during fiscal year ended June 30, 2010 with a weighted average fair value of $0.58 per share. We use the detailed method provided in ASC 718 for calculating the beginning balance of the additional paid-in capital pool (APIC pool) related to the tax effects of employee stock-based compensation, and to determine the subsequent impact on the APIC pool and Consolidated Statements of Cash Flows of the tax effects of employee share-based compensation awards that are outstanding upon adoption of ASC 718. |
STOCK RIGHTS PLAN
STOCK RIGHTS PLAN | 12 Months Ended |
Jun. 30, 2016 | |
Stock Rights Program [Abstract] | |
STOCK RIGHTS PLAN | 9. STOCK RIGHTS PLAN In July 2007, the Company implemented a stock rights program. Pursuant to the program, stockholders of record on August 7, 2007, received a dividend of one right to purchase for $ 10 20 August 6, 2017 0.0001 After a triggering event, the rights will detach from the Common Stock. If the Company is then merged into, or is acquired by, another corporation, the Company has the opportunity to either (i) redeem the rights or (ii) permit the rights holder to receive in the merger stock of the Company or the acquiring company equal to two times the exercise price of the right (i.e., $ 20 No triggering events occurred in the year ended June 30, 2016. |
STOCK REPURCHASE PLAN
STOCK REPURCHASE PLAN | 12 Months Ended |
Jun. 30, 2016 | |
Stock Repurchase Plan [Abstract] | |
STOCK REPURCHASE PLAN | 10. STOCK REPURCHASE PLAN In February 2008, the Company’s Board of Directors authorized a stock purchase plan. The board authorized the open market purchase at such times and prices determined at the discretion of management. In fiscal 2009, the Company purchased 404,710 558,000 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 11. SEGMENT INFORMATION In its operation of the business, management reviews certain financial information, including segmented internal profit and loss statements prepared on a basis consistent with U.S. generally accepted accounting principles. Our two segments are Point.360 and Movie>Q. The two segments discussed in this analysis are presented in the way we internally managed and monitored performance for 2014, 2015 and 2016. Allocations for internal resources were made for the fiscal years ended June 30, 2014, 2015, and 2016. The Movie>Q segment tracks certain assets separately, and all others are recorded in the Point.360 segment for internal reporting presentations. Cash was not segregated between the two segments but retained in the Point.360 segment. The types of services provided by each segment are summarized below: Point.360 Movie>Q 1,200 1,600 10,000 Revenue Year 2014 2015 2016 Point.360 $ 25,281 $ 21,225 $ 37,315 Movie>Q 452 356 255 Consolidated revenue $ 25,733 $ 21,581 $ 37,570 Operating loss Year 2014 2015 2016 Point.360 $ (2,296) $ (2,531) $ (8,326) Movie>Q (654) (424) (601) Operating income (loss) $ (2,950) $ (2,955) $ (8,927) Total Assets As of 2014 2015 2016 Point.360 $ 16,204 $ 12,601 $ 20,225 Movie>Q 845 779 622 Consolidated assets $ 17,049 $ 13,380 $ 20,847 |
ACQUISITION OF ASSETS OF MODERN
ACQUISITION OF ASSETS OF MODERN VIDEOFILM, INC. | 12 Months Ended |
Jun. 30, 2016 | |
Acquisition Of Asset [Abstract] | |
ACQUISITION OF ASSETS OF MODERN VIDEOFILM, INC. | 12. ACQUISITION OF ASSETS OF MODERN VIDEOFILM, INC. On July 8, 2015, Point.360 entered into a Sale Agreement Pursuant to Article 9 of the Uniform Commercial Code (the “Sale Agreement”) in a foreclosure sale pursuant to which Point.360 acquired certain assets of Modern VideoFilm, Inc. (“MVF”) including, but not limited to, MVF's equipment, inventory, and accounts receivable, in a private sale conducted under applicable provisions of the New York Uniform Commercial Code, and assumed no debts, obligations or liabilities except for agreeing to pay a portion of the rent for each facility of MVF to its landlord on a per diem basis based on the number of days post-closing, if any, that we occupy such facility to complete the relocation of certain acquired assets, and paid time off owed to former MVF employees employed by the Company in connection with the closing to the extent (i) accrued and unused as of the closing, and (ii) such employees have not requested such paid time off to be paid by MVF. As consideration for the assets described in the preceding paragraph, we issued 2,000,000 800,000 0.75 500,000 In connection with the Acquisition, on July 8, 2015, the Company entered into a Term Loan Agreement (the “Loan Agreement”) with the Lenders. The Loan Agreement is comprised of a five-year term loan facility in the amount of $ 6.0 1.0 The consolidated balance sheet reflects the allocation by Point.360 management of the MVF purchase price to identifiable tangible and intangible assets and liabilities acquired, and a credit to retained earnings for $ 6.8 Current assets $ 3,173,000 Property and equipment 5,359,000 Other assets 118,000 Acquired intangibles: Trade names 150,000 Customer relationships 200,000 Total fair value of assets acquired 9,000,000 Total liabilities assumed (770,000) Net assets acquired 8,230,000 Common stock consideration (1,417,000) Gain before deferred income tax benefit 6,813,000 Income tax benefit - deferred (2,714,000) Gain on bargain purchase $ 4,099,000 ASC 805 requires that when fair value of the net assets acquired exceeds the purchase price, resulting in a bargain purchase of assets, the acquirer must reassess the reasonableness of the values assigned to all of the net assets acquired, liabilities assumed and consideration transferred. The Company performed such assessment and concluded that the values assigned for the acquisition were reasonable. The gain on bargain purchase was primarily attributable to the fact that this was a foreclosure sale. The transaction was completed on July 8, 2015, near the July 1, 2015 beginning of the fiscal year ended June 30, 2016. The following summary unaudited pro forma condensed consolidated financial information reflects the asset purchase as if it had occurred on July 1, 2014, the beginning of the fiscal year ended June 30, 2015, for purposes of the statements of operations. This summary unaudited pro forma information is not necessarily representative of what the Company’s results of operations would have been had this acquisition in fact occurred on July 1, 2014 and is not intended to project the Company’s results of operations for any future period. Fiscal Year Ended (unaudited) June 30, 2015 June 30, 2016 Revenue $ 65,150,000 $ 37,570,000 Net loss $ (6,447,000) $ (1,758,000) Net Loss per share $ (0.51) $ (0.14) Disclosure of unaudited pro forma operating results of the Company and operations related to the acquired assets prior to the fiscal year ended June 30, 2015 is impracticable because it would require assumptions about management’s intent in a prior period that cannot be independently substantiated, and would require significant estimates of how those assets would have been used in a combined setting |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 30, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Point.360 Schedule II- Valuation and Qualifying Accounts Allowance for Doubtful Accounts Balance at Charged to Other Deductions/ Balance at Year ended June 30, 2014 $ 327,000 $ 26,000 $ $ (125,000) $ 228,000 Year ended June 30, 2015 $ 228,000 $ 21,000 $ $ $ 249,000 Year ended June 30, 2016 $ 249,000 $ 38,000 $ 12,000 $ (6,000) $ 293,000 |
SUMMARY OF SIGNIFICANT ACCOUN20
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents represent highly liquid short-term investments with original maturities of less than three months when purchased. |
Revenues | Revenues We perform a multitude of services for our clients, including film-to-tape transfer, video and audio editing, standards conversions, adding special effects, duplication, distribution, etc. A customer orders one or more of these services with respect to an element (movie, television show, etc.). The sum total of services performed on a particular element (a “package”) becomes the deliverable (i.e., the customer will pay for the services ordered in total when the entire job is completed). Occasionally, a major studio will request that package services be performed on multiple elements. Each element creates a separate revenue stream which is recognized only when all requested services have been performed on that element. At the end of an accounting period, revenue is accrued for un-invoiced but shipped work. Certain jobs specify that many discrete tasks must be performed which require up to four months to complete. In such cases, we use the proportional performance method for recognizing revenue. Under the proportional performance method, revenue is recognized based on the value of services already completed on each specific element. In some instances, a client will request that we store (or “vault”) an element for a period ranging from a day to indefinitely. The Company attempts to bill customers a nominal amount for storage, but some customers, especially major movie studios, will not pay for this service. In the latter instance, storage is an accommodation to foster additional business with respect to the related element. It is impossible to estimate (i) the length of time we may house the element, or (ii) the amount of additional services we may be called upon to perform on an element. We do not treat vaulting as a separate deliverable in those instances in which the customer does not pay. The Company records all revenues when all of the following criteria are met: (i) there is persuasive evidence that an arrangement exists; (ii) delivery has occurred or the services have been rendered; (iii) the Company’s price to the customer is fixed or determinable; and (iv) collectability is reasonably assured. Additionally, in instances where package services are performed on multiple elements or where the proportional performance method is applied, revenue is recognized based on the value of each stand-alone service completed. |
Allowance for doubtful accounts | Allowance for doubtful accounts We are required to make judgments, based on historical experience and future expectations, as to the collectability of accounts receivable. The allowances for doubtful accounts represent allowances for customer trade accounts receivable that are estimated to be partially or entirely uncollectible. These allowances are used to reduce gross trade receivables to their net realizable value. The Company records these allowances as a charge to selling, general and administrative expenses based on estimates related to the following factors: (i) customer specific allowance; (ii) amounts based upon an aging schedule and (iii) an estimated amount, based on the Company’s historical experience, for issues not yet identified. |
Accounting for income taxes | Accounting for income taxes. As part of the process of preparing our consolidated financial statements, we are required to estimate our income taxes in each of the jurisdictions in which we operate. This process involves us estimating our actual current tax exposure together with assessing temporary differences resulting from differing treatment of items, such as deferred revenue, for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which are included within our consolidated balance sheet. We must then assess the likelihood that our deferred tax assets will be recovered from future taxable income and to the extent we believe that recovery is not likely, we must establish a valuation allowance. To the extent we establish a valuation allowance or increase this allowance in a period, we must include an expense within the tax provision in the consolidated statements of operations. At June 30, 2016, the Company has no uncertain tax positions. Significant management judgment is required in determining our provision for income taxes, our deferred tax assets and liabilities and any valuation allowance recorded against our net deferred tax assets. The deferred tax assets are fully reserved at June 30, 2015 and June 30, 2016. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, and accounts receivable. The Company maintains its cash and cash equivalents with high credit quality financial institutions; at times, such balances with any one financial institution may exceed FDIC insured limits, which was the case as of June 30, 2016. Credit risk with respect to trade receivables is concentrated due to the large number of orders with major entertainment studios in any particular reporting period. Our five largest studio customers represented 61 52 17 5 27 27 12 4 The five largest studio customers accounted for 69 68 63 25 23 17 15 14 6 22 24 23 |
Inventories | Inventories Inventories comprise raw materials, principally tape stock, and DVD’s, and are stated at the lower of cost or market. Cost is determined using the average cost method. The rental library for the Movie>Q stores consists of DVD’s available for rental by customers. Because of the DVD’s relatively short useful lives, we view these assets to be current assets. We utilize the accelerated method of depreciation because it approximates the demand for the product. A nominal residual value is established. Movie>Q depreciation expense totaled $ 144,000 141,000 126,000 |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Expenditures for additions and major improvements are capitalized. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets. Amortization of leasehold improvements is computed using the straight-line method over the lesser of the estimated useful lives of the improvements or the remaining lease term. |
Operating Leases | Operating Leases Operating leases are accounted for in accordance with FASB Accounting Standard Codification Topic 840, “ Accounting for Leases |
Advertising Costs | Advertising Costs Advertising costs are not significant to the Company’s operations and are expensed as incurred. |
Fair Value Measurement | Fair Value Measurement The Company follows a framework for consistently measuring fair value under generally accepted accounting principles, and the disclosures of fair value measurements. The framework provides a fair value hierarchy to classify the source of the information. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value and include the following: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Cash and cash equivalents, the only Level 1 input applicable to the Company (there are no Level 2 or 3 inputs), is stated on the Consolidated Balance Sheets at fair value. As of June 30, 2015 and 2016, the carrying value of accounts receivable, accounts payable, accrued expenses and other liabilities approximates fair value due to the short-term nature of such instruments. The carrying value of notes payable, capital lease obligations, and other long-term liabilities approximates fair value as the related interest rates approximate rates currently available to the Company. |
Impairment of long lived assets | Impairment of long lived assets Factors we consider important which could trigger an impairment review include the following: · Significant underperformance relative to expected historical or projected future operating results; · Significant changes in the manner of our use of the acquired assets or the strategy of our overall business; · Significant negative industry or economic trends; · Significant decline in our stock price for a sustained period; and · Our market capitalization relative to net book value. When we determine that the carrying value of long-lived assets may not be recoverable based upon the existence of one or more of the above indicators of impairment, we measure any impairment based on comparing the carrying amount of the asset to its fair value in a current transaction between willing parties or, in the absence of such measurement, on a projected discounted cash flow method using a discount rate determined by our management to be commensurate with the risk inherent in our current business model. Any amount of impairment so determined would be written off as a charge to the statement of operations, together with an equal reduction of the related asset. Net long-lived assets amounted to approximately $ 14.2 As of June 30, 2016, we compared the book value of our building ($ 7.7 6.2 Year ended June 30, 2014 $ (40,000) Year ended June 30, 2015 $ (1,627,000) Year ended June 30, 2016 $ (4,639,000) We also considered the Company’s closing stock price which ranged from $ 0.12 1.35 0.68 We have also considered the evolution of our production work from physical to file-based formats. This trend is expected to continue, and we have taken and will continue to take, steps to consolidate facilities and realign capabilities which have enhanced operating cash flow. While this evolution will create uncertainties which may result in a material future impairment, we do not believe such impairment exists, and that further impairment testing is not required, for the year ended June 30, 2016. |
Valuation of long-lived assets | Valuation of long-lived assets Long-lived assets, consisting primarily of property and equipment, comprise a significant portion of the Company’s total assets. Long-lived assets are reviewed for impairment whenever events or changes in circumstances have indicated that their carrying amounts may not be recoverable. Recoverability of assets is measured by comparing the carrying amount of an asset to its fair value in a current transaction between willing parties, other than in a forced liquidation sale. In fiscal 2010, the Company acquired assets and technology from Kiosk Concepts, LLC and DVDs on the Run, Inc. for use in developing the Movie>Q proof of concept. The assets included (i) vending machine type kiosks and related machinery, and (ii) an automated DVD management system. The Movie>Q R&D project evaluated the capabilities and potential economics of both models. In 2010, the Company opened three Movie>Q stores incorporating the automated inventory management (AIM) system while further investigating potential uses of the kiosk assets. On March 31, 2011, the Company determined that the AIM system would be used exclusively for Movie>Q, and that the kiosk assets of the Movie>Q business segment were impaired for accounting purposes. For purposes of impairment testing under ASC 360, we considered potential cash flows from the kiosk assets. Since the decision was made to use the AIM system, and because the kiosk assets were easily separable from both the AIM assets and the chosen Movie>Q business model, separate kiosk cash flow evaluation was deemed appropriate. The kiosks are specialty retail machines that could conceivably be employed by the Company or another entity to compete with the Redbox-type business, but the kiosks were significantly larger than the Redbox version, required software development to become functional, and would require potentially large expenditures to ship them to a buyer. Because of these factors and our inability to attract a buyer, we deemed the potential cash flow from the kiosks to be negligible to zero, and that the salvage value is zero. Due to the specialized nature of the assets, management’s decision not to use the kiosk assets in Movie>Q, no perceived alternative use for the assets, and no indicated market value for the assets, management determined that the kiosk assets were fully impaired and recorded an impairment loss of $ 684,000 There were no impairment charges during the fiscal years ended June 30, 2014, 2015, and 2016. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share The Company has historically followed Accounting Standards Codification No. 260, “Earnings per Share” (“ASC 260”), and related interpretations for reporting earnings per share. ASC 260 requires dual presentation of basic earnings per share (“Basic EPS”) and diluted earnings per share (“Diluted EPS”). Basic EPS excludes dilution and is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the reported period. Diluted EPS reflects the potential dilution that could occur if a company had a stock option plan and stock options were exercised using the treasury stock method. Year Ended 2014 2015 2016 Weighted average number of common shares outstanding used in computation of basic EPS 10,533 10,537 12,535 Dilutive number of outstanding stock options - - - Weighted average number of common and potential common shares outstanding used in computation of Diluted EPS 10,533 10,537 12,535 Number of dilutive options excluded in the computation of diluted EPS due to net loss 71 4 464 The weighted average number of common shares outstanding was the same amount for both basic and diluted income or loss per share in the 2014 and 2015 periods presented. The effect of potentially dilutive securities for the 2014, 2015 and 2016 periods was excluded from the computation of diluted earnings per share because the Company reported a net loss, and the effect of inclusion would be anti-dilutive (i.e., including such securities would result in a lower loss per share). The number of anti-dilutive shares were 0, 30,000 and 1,114,000 as of June 30, 2014, 2015 and 2016, respectively. |
New Accounting Updates Recently Adopted | New Accounting Updates Recently Adopted In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes |
Recent Accounting Standards or Updates Not Yet Effective | Recent Accounting Standards or Updates Not Yet Effective In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) |
SUMMARY OF SIGNIFICANT ACCOUN21
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Net Cash and Cash Equivalents Provided by (Used in) Operating Activities for Last Three Fiscal Years | As indicated in the Consolidated Statements of Cash Flows, the Company reported the following “Net cash and cash equivalents used in operating activities” for the last three fiscal years: Year ended June 30, 2014 $ (40,000) Year ended June 30, 2015 $ (1,627,000) Year ended June 30, 2016 $ (4,639,000) |
Reconciliation of Denominator of Basic Earnings Per Share Computation to Denominator of Diluted Earnings Per Share Computation | A reconciliation of the denominator of the basic EPS computation to the denominator of the diluted EPS computation is as follows (in thousands): Year Ended 2014 2015 2016 Weighted average number of common shares outstanding used in computation of basic EPS 10,533 10,537 12,535 Dilutive number of outstanding stock options - - - Weighted average number of common and potential common shares outstanding used in computation of Diluted EPS 10,533 10,537 12,535 Number of dilutive options excluded in the computation of diluted EPS due to net loss 71 4 464 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consist of the following as of June 30, 2016: June 30, 2015 2016 Land $ 2,405,000 $ 2,405,000 Buildings 6,012,000 6,471,000 Machinery and equipment 38,308,000 43,634,000 Leasehold improvements 8,761,000 9,071,000 Computer equipment 8,005,000 8,273,000 Equipment under capital lease 1,102,000 1,221,000 Office equipment, vehicles 507,000 813,000 CIP 104,000 2,000 Subtotal 65,204,000 71,890,000 Less accumulated depreciation and amortization (55,978,000) (57,966,000) Property and equipment, net $ 9,226,000 $ 13,924,000 |
LONG TERM DEBT, NOTES PAYABLE23
LONG TERM DEBT, NOTES PAYABLE, AND CAPITAL LEASE OBLIGATIONS (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt [Table Text Block] | Annual maturities for debt under term note and capital lease obligations as of June 30, 2016 are as follows: 2017 $ 5,244,000 2018 60,000 2019 19,000 2020 - 2021 6,000,000 Thereafter - $ 11,323,000 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Provision for (Benefit from) Income Taxes | The Company’s provision for (benefit from) income taxes for the years ended June 30, 2014, 2014 and 2015 consists of the following (in thousands): Year Ended 2013 2015 2016 Current tax expense: Federal $ - $ - $ - State 3 - 5 Total current 3 - 5 Deferred tax (benefit) expense: Federal (873) (826) (1,383) State (204) (267) (394) Valuation allowance 1,077 1,093 1,777 Total deferred - - - Total provision for income taxes $ 3 $ - $ 5 |
Composition of Deferred Tax Assets (Liabilities) | The composition of the deferred tax assets (liabilities) at June 30, 2014, 2015 and 2016 are listed below: 2014 2015 2016 Accrued liabilities $ 208,000 $ 68,000 $ 27,000 Allowance for doubtful accounts 97,000 106,000 (184,000) Other 7,000 5,000 (131,000) Total current deferred tax assets 312,000 179,000 (288,000) Property and equipment 979,000 1,349,000 (537,000) Goodwill and other intangibles 573,000 477,000 275,000 Net operating loss carry forward 7,929,000 9,104,000 13,734,000 Other 575,000 352,000 54,000 Valuation allowance (10,368,000) (11,461,000) (13,238,000) Total non-current deferred tax liabilities (312,000) (179,000) 288,000 Net deferred tax liability $ - $ - $ - |
U.S. Statutory Income Taxes Rate Reconciliation | The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. Statutory income taxes rates to income before taxes as a result of the following differences: Year Ended 2014 2015 2016 Federal tax computed at statutory rate 34 % 34 % 34 % State taxes, net of federal benefit and net operating loss limitation 7 % 4 % 6 % Permanent difference 0 % 0 % 0 % Excess tax benefit for goodwill 0 % 0 % 0 % Valuation allowance (41) % (38) % (40) % Other (meals and entertainment) 0 % 0 % 0 % Tax provision 0 % 0 % 0 % |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum Rental Payments Under Non-Cancelable Operating Leases | The Company leases office and production facilities, vehicles and data processing equipment in California under various operating leases. Approximate minimum rental payments under these non-cancelable operating leases as of June 30, 2016 are as follows for the indicated fiscal years ended June 30: 2017 $ 3,095,000 2018 2,333,000 2019 1,608,000 2020 1,608,000 2021 1,206,000 Thereafter - Total minimum payments required $ 9,850,000 *Minimum payments have not been reduced by minimum sublease rentals for $ 1,422,000 |
Composition of Total Rental Expense for All Operating Leases Except Those With Terms of One Month or Less That Were Not Renewed | The following schedule shows the composition of total rental expense for all operating leases except those with terms of a month or less that were not renewed: Year Ended 2014 2015 2016 Rent Expense: $ 1,666,000 $ 1,533,000 $ 3,018,000 Less: Sublease rentals (299,000) (299,000) (299,000) $ 1,367,000 $ 1,234,000 $ 2,719,000 |
STOCK OPTION PLAN, STOCK-BASE26
STOCK OPTION PLAN, STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
Stock-based Compensation Expense Related To Employee or Director Stock Options | During the fiscal years ended June 30, 2014, 2015 and 2016, the Company granted awards of stock options as follows: 2014 2015 2016 Stock option awards 610,600 644,900 739,000 Weighted average Exercise price $ 0.50 $ 0.45 $ 0.88 |
Company Granted Awards Of Stock Options | The fair value of each option was estimated on the date of grant using the Black-Scholes optionpricing model with the following weighted average assumptions: 2014 2015 2016 Risk-free interest rate 1.53 % 1.53 % 1.23 % Expected term (years) 5.0 5.0 5.0 Volatility 108 % 159 % 145 % Expected annual dividends - - - |
Summary of Status of Stock Plans | The following table summarizes the status of the 2007 and 2010 Plans as of June 30, 2016: 2007 Plan 2010 Plan Total Options originally available 2,000,000 4,000,000 6,000,000 Stock options outstanding 1,922,075 1,039,275 2,961,350 Options available for grant 22,160 2,887,150 2,909,310 |
Summary of Stock Options Transactions | Transactions involving stock options are summarized as follows: Number Weighted Average Weighted Average Balance at June 30, 2013 2,413,525 $ 0.95 $ 0.53 Granted 610,600 $ 0.50 $ 0.40 Exercised (23,740) $ 0.85 $ 0.52 Cancelled (343,037) $ 0.95 $ 0.44 Balance at June 30, 2014 2,657,348 $ 0.83 $ 0.52 Granted 644,900 $ 0.45 $ 0.43 Exercised - - - Cancelled (367,188) $ 1.69 $ 0.56 Balance at June 30, 2015 2,935,060 $ 0.70 $ 0.49 Granted 739,000 $ 0.88 $ 0.80 Exercised (93,600) $ 0.59 $ 0.42 Cancelled (619,110) $ 0.68 $ 0.50 Balance of June 30, 2016 2,961,350 $ 0.72 $ 0.57 |
Weighted Average Exercise Prices for Options Granted and Exercisable and Weighted Average Remaining Contractual Life for Options Outstanding | The weighted average exercise prices for options granted and exercisable and the weighted average remaining contractual life for options outstanding as of June 30, 2014, 2015 and 2016 were as follows: Number Weighted Average Weighted Average Intrinsic As of June 30, 2014 Employees Outstanding 2,514,848 $ 0.82 2.93 $ - Employees Expected to Vest 2,263,363 $ 0.82 2.93 $ - Employees Exercisable 1,068,411 $ 0.97 1.86 $ - Non-Employees Outstanding 142,500 $ 0.96 2.47 $ - Non-Employees Vested 123,750 $ 0.99 2.28 $ - Non-Employees Exercisable 123,750 $ 0.99 2.28 $ - As of June 30, 2015 Employees Outstanding 2,785,060 $ 0.70 2.76 $ - Employees Expected to Vest 2,506,534 $ 0.70 2.76 $ - Employees Exercisable 1,303,266 $ 0.81 1.72 $ - Non-Employees-Outstanding 150,000 $ 0.80 2.36 $ 1,200 Non-Employees-Vested 142,500 $ 0.81 2.30 $ 1,200 Non-Employees-Exercisable 142,500 $ 0.81 2.30 $ 1,200 As of June 30, 2016 Employees Outstanding 2,818,850 $ 0.72 2.88 $ 207,312 Employees Expected to Vest 2,536,965 $ 0.72 2.88 $ 186,581 Employees Exercisable 1,184,975 $ 0.74 1.86 $ 65,786 Non-Employees Outstanding 142,500 $ 0.75 2.53 $ 14,100 Non-Employees Vested 142,500 $ 0.75 2.53 $ 14,100 Non-Employees Exercisable 142,500 $ 0.75 2.53 $ 14,100 |
Additional Information with Respect to Outstanding Options | Additional information with respect to outstanding options as of June 30, 2016 is as follows: Options Outstanding Options Exercisable Options Exercise Number of Weighted Weighted Number of Weighted $ 1.07 22,500 0.42 years $ 1.07 22,500 0.42 years $ 1.04 30,000 4.37 years $ 1.04 30,000 4.37 years $ 1.00 65,000 4.19 years $ 1.00 - 4.19 years $ 0.95 227,825 0.71 years $ 0.95 227,825 0.71 years $ 0.88 631,250 4.67 years $ 0.88 - 4.67 years $ 0.81 808,325 1.61 years $ 0.81 606,600 1.61 years $ 0.80 22,500 1.36 years $ 0.80 22,500 1.36 years $ 0.74 22,500 2.35 years $ 0.74 22,500 2.35 years $ 0.64 15,000 2.37 years $ 0.64 15,000 2.37 years $ 0.57 5,000 3.19 years $ 0.57 5,000 3.19 years $ 0.50 476,400 2.60 years $ 0.50 193,725 2.60 years $ 0.48 605,050 3.62 years $ 0.48 151,825 3.62 years $ 0.23 30,000 3.35 years $ 0.23 30,000 3.35 years |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Revenues, Operating Loss and Total Assets | Segment revenues, operating loss and total assets were as follows (in thousands): Revenue Year 2014 2015 2016 Point.360 $ 25,281 $ 21,225 $ 37,315 Movie>Q 452 356 255 Consolidated revenue $ 25,733 $ 21,581 $ 37,570 Operating loss Year 2014 2015 2016 Point.360 $ (2,296) $ (2,531) $ (8,326) Movie>Q (654) (424) (601) Operating income (loss) $ (2,950) $ (2,955) $ (8,927) Total Assets As of 2014 2015 2016 Point.360 $ 16,204 $ 12,601 $ 20,225 Movie>Q 845 779 622 Consolidated assets $ 17,049 $ 13,380 $ 20,847 |
ACQUISITION OF ASSETS OF MODE28
ACQUISITION OF ASSETS OF MODERN VIDEOFILM, INC. (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Acquisition Of Asset [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Under the acquisition method of accounting, the total estimated purchase price was allocated to MVF’s tangible and intangible assets and liabilities based on their estimated fair values at the date of the purchase date. The following table summarizes the allocation of the purchase price for MVF: Current assets $ 3,173,000 Property and equipment 5,359,000 Other assets 118,000 Acquired intangibles: Trade names 150,000 Customer relationships 200,000 Total fair value of assets acquired 9,000,000 Total liabilities assumed (770,000) Net assets acquired 8,230,000 Common stock consideration (1,417,000) Gain before deferred income tax benefit 6,813,000 Income tax benefit - deferred (2,714,000) Gain on bargain purchase $ 4,099,000 |
Pro forma unaudited condensed consolidated financial information | Pro forma unaudited condensed consolidated financial information for the years ended June 30, 2015 and June 30, 2016: Fiscal Year Ended (unaudited) June 30, 2015 June 30, 2016 Revenue $ 65,150,000 $ 37,570,000 Net loss $ (6,447,000) $ (1,758,000) Net Loss per share $ (0.51) $ (0.14) |
THE COMPANY - Additional Inform
THE COMPANY - Additional Information (Detail) | 12 Months Ended |
Jun. 30, 2016ft²Unit | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |
Number of business segments | 2 |
Post Production | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |
Number of business segments | 3 |
Movie Q | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |
Number of business locations | 3 |
Number of stores opened | 3 |
Movie Q | Minimum | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |
Store facility area | 1,200 |
Movie Q | Maximum | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |
Store facility area | 1,600 |
Unit selections offered to a customer | Unit | 10,000 |
SUMMARY OF SIGNIFICANT ACCOUN30
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) - USD ($) shares in Thousands | 12 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2011 | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Long-Lived Assets | $ 14,200,000 | |||
Share Price | $ 0.68 | |||
Impairment of Long-Lived Assets Held-for-use | $ 0 | $ 0 | $ 0 | $ 684,000 |
Number Of Anti-Dilutive Shares | 1,114 | 30 | 0 | |
Building [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Finite-Lived Intangible Assets, Net | $ 7,700,000 | |||
Equipment [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Finite-Lived Intangible Assets, Net | $ 6,200,000 | |||
Maximum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Share Price | $ 1.35 | |||
Minimum [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Share Price | $ 0.12 | |||
Movie Q [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Amortization | $ 126,000 | $ 141,000 | $ 144,000 | |
Credit Concentration Risk [Member] | Five Largest Studio Customers [Member] | Accounts Receivable [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 52.00% | 61.00% | ||
Credit Concentration Risk [Member] | Five Largest Studio Customers [Member] | Sales Revenue, Net [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 63.00% | 68.00% | 69.00% | |
Credit Concentration Risk [Member] | Twentieth Century Fox [Member] | Accounts Receivable [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 5.00% | 17.00% | ||
Credit Concentration Risk [Member] | Twentieth Century Fox [Member] | Sales Revenue, Net [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 17.00% | 23.00% | 25.00% | |
Credit Concentration Risk [Member] | Disney [Member] | Accounts Receivable [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 27.00% | 27.00% | ||
Credit Concentration Risk [Member] | Disney [Member] | Sales Revenue, Net [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 23.00% | 24.00% | 22.00% | |
Credit Concentration Risk [Member] | Fremantle Media [Member] | Accounts Receivable [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 4.00% | 12.00% | ||
Credit Concentration Risk [Member] | Fremantle Media [Member] | Sales Revenue, Net [Member] | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Concentration Risk, Percentage | 6.00% | 14.00% | 15.00% |
NET CASH AND CASH EQUIVALENTS P
NET CASH AND CASH EQUIVALENTS PROVIDED BY (USED IN) OPERATING ACTIVITIES FOR LAST THREE FISCAL YEARS (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Net Cash Provided by (Used in) Operating Activities | $ (4,639) | $ (1,627) | $ (40) |
RECONCILIATION OF DENOMINATOR O
RECONCILIATION OF DENOMINATOR OF BASIC EARNINGS PER SHARE COMPUTATION TO DENOMINATOR OF DILUTED EARNINGS PER SHARE COMPUTATION (Detail) - shares shares in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share Disclosure [Line Items] | |||
Weighted average number of common shares outstanding used in computation of basic EPS | 12,535 | 10,537 | 10,533 |
Dilutive number of outstanding stock options | 0 | 0 | 0 |
Weighted average number of common and potential common shares outstanding used in computation of Diluted EPS | 12,535 | 10,537 | 10,533 |
Number of dilutive options excluded in the computation of diluted EPS due to net loss | 1,114 | 30 | 0 |
Stock Options | |||
Earnings Per Share Disclosure [Line Items] | |||
Number of dilutive options excluded in the computation of diluted EPS due to net loss | 464 | 4 | 71 |
PROPERTY AND EQUIPMENT - Additi
PROPERTY AND EQUIPMENT - Additional Information (Detail) - USD ($) | Apr. 01, 2012 | Mar. 31, 2006 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 |
Property, Plant and Equipment [Line Items] | |||||
Sale and leaseback transaction, real estate sold, after tax gain | $ 1,300,000 | ||||
Sale and leaseback transaction, lease term | 15 years | ||||
Sale and leaseback transaction, security deposit | $ 250,000 | $ 250,000 | |||
Sale and leaseback transaction, minimum annual rent payments for the initial five years of the lease | $ 1,111,000 | ||||
Sale and leaseback transaction, costs for construction incurred | 2,100,000 | ||||
Sale and leaseback transaction, costs for construction reimbursed by the landlord | 2,000,000 | ||||
Sale Leaseback Transaction, Gross Proceeds, Investing Activities | $ 14,000,000 | ||||
Sale Leaseback Transaction, Monthly Rental Payments | $ 27,000 | ||||
Capital Leased Assets Gross | 1,221,000 | 1,102,000 | |||
Depreciation, Total | $ 2,175,000 | 1,363,000 | $ 1,841,000 | ||
Building | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 39 years | ||||
Computer Equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 7 years | ||||
Leasehold Improvements | Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 2 years | ||||
Leasehold Improvements | Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 10 years | ||||
Machinery And Equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 7 years | ||||
Capital Leased Assets Gross | $ 1,221,000 | 1,102,000 | |||
Capital Leases, Balance Sheet, Assets by Major Class, Net, Total | $ 137,000 | $ 160,000 |
PROPERTY AND EQUIPMENT (Detail)
PROPERTY AND EQUIPMENT (Detail) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 2,405,000 | $ 2,405,000 |
Buildings | 6,471,000 | 6,012,000 |
Machinery and equipment | 43,634,000 | 38,308,000 |
Leasehold improvements | 9,071,000 | 8,761,000 |
Computer equipment | 8,273,000 | 8,005,000 |
Equipment under capital lease | 1,221,000 | 1,102,000 |
Office equipment, vehicles | 813,000 | 507,000 |
CIP | 2,000 | 104,000 |
Subtotal | 71,890,000 | 65,204,000 |
Less accumulated depreciation and amortization | (57,966,000) | (55,978,000) |
Property and equipment, net | $ 13,924,000 | $ 9,226,000 |
401(K) PLAN - Additional Inform
401(K) PLAN - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 20.00% | ||
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage | 100.00% | ||
Defined Contribution Plan Percentage Of Employee Compensation Eligible For Employer Match | 4.00% | ||
Defined Benefit Plan, Contributions by Employer | $ 120,000 | $ 55,000 | $ 68,000 |
LONG TERM DEBT, NOTES PAYABLE36
LONG TERM DEBT, NOTES PAYABLE, AND CAPITAL LEASE OBLIGATIONS Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2016 | Feb. 28, 2015 | Jun. 30, 2016 | Aug. 15, 2016 | Jul. 08, 2015 | |
Debt Instrument [Line Items] | |||||
Credit facility, maturity date | Jan. 7, 2016 | ||||
Repayments of Lines of Credit | $ 200,000 | ||||
Line of Credit Facility, Frequency of Payment and Payment Terms | Repayment is based on monthly payments with a 25-year amortization, with all principal due in 10 years. | ||||
Monthly Collateral Management Fees Percentage | 0.45% | ||||
Annual Collateral Management Fees Percentage | 5.40% | ||||
Long-term Line of Credit | $ 400,000 | ||||
Line of Credit Facility, Commitment Fee Amount | $ 5,000 | $ 20,000 | |||
Two Year Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit agreement | $ 2,000,000 | ||||
Line of Credit Facility, Interest Rate Description | The loan and security agreement as amended provided for interest at prime rate plus 1.0% (4.50% as of June 30, 2016). | ||||
Percentage Of Acceptable Accounts Receivable | 80.00% | ||||
Hollywood Way and Vine Street Mortgage [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Interest Rate Description | The remaining Hollywood Way mortgage provides for interest at LIBOR plus 3% (3.45% as of June 30, 2016). | ||||
Line of Credit Facility, Average Outstanding Amount | $ 4,700,000 | ||||
Loan Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit agreement | $ 6,000,000 | ||||
Line of Credit Facility, Current Borrowing Capacity | $ 1,000,000 | ||||
Line of Credit Facility, Interest Rate Description | We must pay monthly interest in arrears on the unpaid principal balance of the Term Loan at a rate per annum equal to three-month LIBOR plus 6.00% (6.65% as of June 30, 2016). | ||||
Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Monthly Collateral Management Fees Percentage | 0.42% | ||||
Annual Collateral Management Fees Percentage | 5.00% | ||||
Subsequent Event [Member] | Two Year Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Interest Rate Description | The amended and restated loan and security agreement provides for interest at prime rate plus 1.0% (4.50% as of June 30, 2016) | ||||
Subsequent Event [Member] | Three Year Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit agreement | $ 4,000,000 | ||||
Percentage Of Acceptable Accounts Receivable | 80.00% | ||||
Real Estate Term Loan One | Hollywood Way and Vine Street Mortgage [Member] | |||||
Debt Instrument [Line Items] | |||||
Long term construction loan agreements, value | $ 5,500,000 | ||||
Real Estate Term Loan Two | Hollywood Way and Vine Street Mortgage [Member] | |||||
Debt Instrument [Line Items] | |||||
Long term construction loan agreements, value | 3,100,000 | ||||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Credit agreement | 2,000,000 | ||||
Equipment Financing Facilities | |||||
Debt Instrument [Line Items] | |||||
Credit agreement | 1,250,000 | ||||
Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Long-term Line of Credit | $ 400,000 |
LONG TERM DEBT, NOTES PAYABLE37
LONG TERM DEBT, NOTES PAYABLE, AND CAPITAL LEASE OBLIGATIONS (Detail) | Jun. 30, 2016USD ($) |
2,017 | $ 5,244,000 |
2,018 | 60,000 |
2,019 | 19,000 |
2,020 | 0 |
2,021 | 6,000,000 |
Thereafter | 0 |
Long-term Debt, Total | $ 11,323,000 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 |
Income Taxes [Line Items] | |||
Deferred Tax Assets, Gross, Current | $ (288,000) | $ 179,000 | $ 312,000 |
Deferred Tax Assets, Valuation Allowance | $ 13,238,000 | $ 11,461,000 | $ 10,368,000 |
PROVISION FOR (BENEFIT FROM) IN
PROVISION FOR (BENEFIT FROM) INCOME TAXES (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Current tax expense: | |||
Federal | $ 0 | $ 0 | $ 0 |
State | 5 | 0 | 3 |
Total current | 5 | 0 | 3 |
Deferred tax (benefit) expense: | |||
Federal | (1,383) | (826) | (873) |
State | (394) | (267) | (204) |
Valuation allowance | 1,777 | 1,093 | 1,077 |
Total deferred | (2,714) | 0 | 0 |
Total provision for income taxes | $ (2,709) | $ 0 | $ 3 |
COMPOSITION OF DEFERRED TAX ASS
COMPOSITION OF DEFERRED TAX ASSETS (LIABILITIES) (Detail) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 |
Income Taxes [Line Items] | |||
Accrued liabilities | $ 27,000 | $ 68,000 | $ 208,000 |
Allowance for doubtful accounts | (184,000) | 106,000 | 97,000 |
Other | (131,000) | 5,000 | 7,000 |
Total current deferred tax assets | (288,000) | 179,000 | 312,000 |
Property and equipment | (537,000) | 1,349,000 | 979,000 |
Goodwill and other intangibles | 275,000 | 477,000 | 573,000 |
Net operating loss carry forward | 13,734,000 | 9,104,000 | 7,929,000 |
Other | 54,000 | 352,000 | 575,000 |
Valuation allowance | (13,238,000) | (11,461,000) | (10,368,000) |
Total non-current deferred tax liabilities | 288,000 | (179,000) | (312,000) |
Net deferred tax liability | $ 0 | $ 0 | $ 0 |
U.S. STATUTORY INCOME TAXES RAT
U.S. STATUTORY INCOME TAXES RATE RECONCILIATION (Detail) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Taxes [Line Items] | |||
Federal tax computed at statutory rate | 34.00% | 34.00% | 34.00% |
State taxes, net of federal benefit and net operating loss limitation | 6.00% | 4.00% | 7.00% |
Permanent difference | 0.00% | 0.00% | 0.00% |
Excess tax benefit for goodwill | 0.00% | 0.00% | 0.00% |
Valuation allowance | (40.00%) | (38.00%) | (41.00%) |
Other (meals and entertainment) | 0.00% | 0.00% | 0.00% |
Tax provision | 0.00% | 0.00% | 0.00% |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) | 12 Months Ended | |
Jun. 30, 2016USD ($)a | ||
Commitments And Contingencies Disclosure [Line Items] | ||
Subleased Agreement Area | a | 16,000 | |
Sublease Agreement Base Monthly Rent | $ 25,000 | |
Operating Leases, Future Minimum Payments Due, Future Minimum Sublease Rentals | $ 1,422,000 | [1] |
Operating Lease Expiration Period After Renewal | 20 years | |
[1] | Minimum payments have not been reduced by minimum sublease rentals for $1,422,000 due in the future under noncancelable subleases. |
MINIMUM RENTAL PAYMENTS UNDER N
MINIMUM RENTAL PAYMENTS UNDER NON-CANCELABLE OPERATING LEASES (Detail) | Jun. 30, 2016USD ($) |
Operating Leased Assets [Line Items] | |
2,017 | $ 3,095,000 |
2,018 | 2,333,000 |
2,019 | 1,608,000 |
2,020 | 1,608,000 |
2,021 | 1,206,000 |
Thereafter | 0 |
Total minimum payments required | $ 9,850,000 |
COMPOSITION OF TOTAL RENTAL EXP
COMPOSITION OF TOTAL RENTAL EXPENSE FOR ALL OPERATING LEASES EXCEPT THOSE WITH TERMS OF ONE MONTH OR LESS THAT WERE NOT RENEWED (Detail) - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating Leased Assets [Line Items] | |||
Rent Expense: | $ 3,018,000 | $ 1,533,000 | $ 1,666,000 |
Less: Sublease rentals | (299,000) | (299,000) | (299,000) |
Operating Leases, Rent Expense, Net, Total | $ 2,719,000 | $ 1,234,000 | $ 1,367,000 |
STOCK OPTION PLAN, STOCK-BASE45
STOCK OPTION PLAN, STOCK-BASED COMPENSATION - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost related to non-vested awards to be expensed, recognition period | 4 years | |||
Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Aggregate Fair Value | $ 595,000 | $ 275,000 | $ 240,000 | |
Compensation cost related to non-vested awards to be expensed | $ 800,000 | |||
Stock options outstanding | 2,961,350 | 2,935,060 | 2,657,348 | 2,413,525 |
Stock options outstanding average exercise price | $ 0.72 | $ 0.70 | $ 0.83 | $ 0.95 |
Share-based Compensation, Total | $ 313,000 | $ 263,000 | $ 272,000 | |
2007 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options originally available | 2,000,000 | |||
Restricted stock issued | 10,000 | |||
Restricted stock issued, weighted average fair value | $ 0.58 | |||
2010 Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options originally available | 4,000,000 |
COMPANY GRANTED AWARDS OF STOCK
COMPANY GRANTED AWARDS OF STOCK OPTIONS (Detail) - $ / shares | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | |||
Stock option awards | 739,000 | 644,900 | 610,600 |
Weighted average Exercise price | $ 0.88 | $ 0.45 | $ 0.50 |
WEIGHTED AVERAGE ASSUMPTIONS FO
WEIGHTED AVERAGE ASSUMPTIONS FOR FAIR VALUE OF OPTIONS (Detail) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | |||
Risk-free interest rate | 1.23% | 1.53% | 1.53% |
Expected term (years) | 5 years | 5 years | 5 years |
Volatility | 145.00% | 159.00% | 108.00% |
Expected annual dividends | 0.00% | 0.00% | 0.00% |
SUMMARY OF STATUS OF STOCK PLAN
SUMMARY OF STATUS OF STOCK PLANS (Detail) - shares | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options outstanding | 2,961,350 | 2,935,060 | 2,657,348 | 2,413,525 |
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options originally available | 6,000,000 | |||
Stock options outstanding | 2,961,350 | |||
Options available for grant | 2,909,310 | |||
2007 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options originally available | 2,000,000 | |||
2007 Equity Incentive Plan | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options originally available | 2,000,000 | |||
Stock options outstanding | 1,922,075 | |||
Options available for grant | 22,160 | |||
2010 Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options originally available | 4,000,000 | |||
2010 Incentive Plan | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options originally available | 4,000,000 | |||
Stock options outstanding | 1,039,275 | |||
Options available for grant | 2,887,150 |
SUMMARY OF STOCK OPTIONS TRANSA
SUMMARY OF STOCK OPTIONS TRANSACTIONS (Detail) - $ / shares | 12 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Number of Shares | ||||
Beginning Balance | 2,935,060 | 2,657,348 | 2,413,525 | |
Granted | 739,000 | 644,900 | 610,600 | |
Exercised | (93,600) | 0 | (23,740) | |
Cancelled | (619,110) | (367,188) | (343,037) | |
Ending Balance | 2,961,350 | 2,935,060 | 2,657,348 | |
Weighted Average Exercise Price | ||||
Balance | $ 0.72 | $ 0.70 | $ 0.83 | $ 0.95 |
Granted | 0.88 | 0.45 | 0.50 | |
Exercised | 0.59 | 0 | 0.85 | |
Cancelled | 0.68 | 1.69 | 0.95 | |
Weighted Average Grant Date Fair Value | ||||
Balance | 0.57 | 0.49 | 0.52 | $ 0.53 |
Granted | 0.8 | 0.43 | 0.4 | |
Exercised | 0.42 | 0 | 0.52 | |
Cancelled | $ 0.5 | $ 0.56 | $ 0.44 |
WEIGHTED AVERAGE EXERCISE PRICE
WEIGHTED AVERAGE EXERCISE PRICES FOR OPTIONS GRANTED AND EXERCISABLE AND WEIGHTED AVERAGE REMAINING CONTRACTUAL LIFE FOR OPTIONS OUTSTANDING (Detail) - USD ($) | 12 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Number of Shares | ||||
Outstanding | 2,961,350 | 2,935,060 | 2,657,348 | 2,413,525 |
Weighted Average Exercise Price | ||||
Outstanding | $ 0.72 | $ 0.70 | $ 0.83 | $ 0.95 |
Employees | ||||
Number of Shares | ||||
Outstanding | 2,818,850 | 2,785,060 | 2,514,848 | |
Expected to Vest | 2,536,965 | 2,506,534 | 2,263,363 | |
Exercisable | 1,184,975 | 1,303,266 | 1,068,411 | |
Weighted Average Exercise Price | ||||
Outstanding | $ 0.72 | $ 0.70 | $ 0.82 | |
Expected to Vest | 0.72 | 0.70 | 0.82 | |
Exercisable | $ 0.74 | $ 0.81 | $ 0.97 | |
Weighted Average Remaining Contractual Life (Years) | ||||
Outstanding | 2 years 10 months 17 days | 2 years 9 months 4 days | 2 years 11 months 5 days | |
Expected to Vest | 2 years 10 months 17 days | 2 years 9 months 4 days | 2 years 11 months 5 days | |
Exercisable | 1 year 10 months 10 days | 1 year 8 months 19 days | 1 year 10 months 10 days | |
Intrinsic Value | ||||
Outstanding | $ 207,312 | $ 0 | $ 0 | |
Expected to Vest | 186,581 | 0 | 0 | |
Exercisable | $ 65,786 | $ 0 | $ 0 | |
Non-Employees | ||||
Number of Shares | ||||
Outstanding | 142,500 | 150,000 | 142,500 | |
Expected to Vest | 142,500 | 142,500 | 123,750 | |
Exercisable | 142,500 | 142,500 | 123,750 | |
Weighted Average Exercise Price | ||||
Outstanding | $ 0.75 | $ 0.80 | $ 0.96 | |
Expected to Vest | 0.75 | 0.81 | 0.99 | |
Exercisable | $ 0.75 | $ 0.81 | $ 0.99 | |
Weighted Average Remaining Contractual Life (Years) | ||||
Outstanding | 2 years 6 months 11 days | 2 years 4 months 10 days | 2 years 5 months 19 days | |
Expected to Vest | 2 years 6 months 11 days | 2 years 3 months 18 days | 2 years 3 months 11 days | |
Exercisable | 2 years 6 months 11 days | 2 years 3 months 18 days | 2 years 3 months 11 days | |
Intrinsic Value | ||||
Outstanding | $ 14,100 | $ 1,200 | $ 0 | |
Expected to Vest | 14,100 | 1,200 | 0 | |
Exercisable | $ 14,100 | $ 1,200 | $ 0 |
ADDITIONAL INFORMATION WITH RES
ADDITIONAL INFORMATION WITH RESPECT TO OUTSTANDING OPTIONS (Detail) - $ / shares | 12 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding, Number of Shares | 2,961,350 | 2,935,060 | 2,657,348 | 2,413,525 |
Options Exercisable, Weighted Average Exercise Price | $ 0.72 | $ 0.70 | $ 0.83 | $ 0.95 |
Range One | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding, Options Exercise Price Range | $ 1.07 | |||
Options Outstanding, Number of Shares | 22,500 | |||
Options Outstanding, Weighted Average Remaining Contractual Life | 5 months 1 day | |||
Options Exercisable, Weighted Average Exercise Price | $ 1.07 | |||
Options Exercisable, Number of Shares | 22,500 | |||
Options Exercisable, Weighted Average Remaining Contractual Life | 5 months 1 day | |||
Range Two | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding, Options Exercise Price Range | $ 1.04 | |||
Options Outstanding, Number of Shares | 30,000 | |||
Options Outstanding, Weighted Average Remaining Contractual Life | 4 years 4 months 13 days | |||
Options Exercisable, Weighted Average Exercise Price | $ 1.04 | |||
Options Exercisable, Number of Shares | 30,000 | |||
Options Exercisable, Weighted Average Remaining Contractual Life | 4 years 4 months 13 days | |||
Range Three | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding, Options Exercise Price Range | $ 1 | |||
Options Outstanding, Number of Shares | 65,000 | |||
Options Outstanding, Weighted Average Remaining Contractual Life | 4 years 2 months 8 days | |||
Options Exercisable, Weighted Average Exercise Price | $ 1 | |||
Options Exercisable, Number of Shares | 0 | |||
Options Exercisable, Weighted Average Remaining Contractual Life | 4 years 2 months 8 days | |||
Range Four | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding, Options Exercise Price Range | $ 0.95 | |||
Options Outstanding, Number of Shares | 227,825 | |||
Options Outstanding, Weighted Average Remaining Contractual Life | 8 months 16 days | |||
Options Exercisable, Weighted Average Exercise Price | $ 0.95 | |||
Options Exercisable, Number of Shares | 227,825 | |||
Options Exercisable, Weighted Average Remaining Contractual Life | 8 months 16 days | |||
Range Five | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding, Options Exercise Price Range | $ 0.88 | |||
Options Outstanding, Number of Shares | 631,250 | |||
Options Outstanding, Weighted Average Remaining Contractual Life | 4 years 8 months 1 day | |||
Options Exercisable, Weighted Average Exercise Price | $ 0.88 | |||
Options Exercisable, Number of Shares | 0 | |||
Options Exercisable, Weighted Average Remaining Contractual Life | 4 years 8 months 1 day | |||
Range Six | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding, Options Exercise Price Range | $ 0.81 | |||
Options Outstanding, Number of Shares | 808,325 | |||
Options Outstanding, Weighted Average Remaining Contractual Life | 1 year 7 months 10 days | |||
Options Exercisable, Weighted Average Exercise Price | $ 0.81 | |||
Options Exercisable, Number of Shares | 606,600 | |||
Options Exercisable, Weighted Average Remaining Contractual Life | 1 year 7 months 10 days | |||
Range Seven | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding, Options Exercise Price Range | $ 0.80 | |||
Options Outstanding, Number of Shares | 22,500 | |||
Options Outstanding, Weighted Average Remaining Contractual Life | 1 year 4 months 10 days | |||
Options Exercisable, Weighted Average Exercise Price | $ 0.80 | |||
Options Exercisable, Number of Shares | 22,500 | |||
Options Exercisable, Weighted Average Remaining Contractual Life | 1 year 4 months 10 days | |||
Range Eight | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding, Options Exercise Price Range | $ 0.74 | |||
Options Outstanding, Number of Shares | 22,500 | |||
Options Outstanding, Weighted Average Remaining Contractual Life | 2 years 4 months 6 days | |||
Options Exercisable, Weighted Average Exercise Price | $ 0.74 | |||
Options Exercisable, Number of Shares | 22,500 | |||
Options Exercisable, Weighted Average Remaining Contractual Life | 2 years 4 months 6 days | |||
Range Nine | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding, Options Exercise Price Range | $ 0.64 | |||
Options Outstanding, Number of Shares | 15,000 | |||
Options Outstanding, Weighted Average Remaining Contractual Life | 2 years 4 months 13 days | |||
Options Exercisable, Weighted Average Exercise Price | $ 0.64 | |||
Options Exercisable, Number of Shares | 15,000 | |||
Options Exercisable, Weighted Average Remaining Contractual Life | 2 years 4 months 13 days | |||
Range Ten | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding, Options Exercise Price Range | $ 0.57 | |||
Options Outstanding, Number of Shares | 5,000 | |||
Options Outstanding, Weighted Average Remaining Contractual Life | 3 years 2 months 8 days | |||
Options Exercisable, Weighted Average Exercise Price | $ 0.57 | |||
Options Exercisable, Number of Shares | 5,000 | |||
Options Exercisable, Weighted Average Remaining Contractual Life | 3 years 2 months 8 days | |||
Range Eleven | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding, Options Exercise Price Range | $ 0.50 | |||
Options Outstanding, Number of Shares | 476,400 | |||
Options Outstanding, Weighted Average Remaining Contractual Life | 2 years 7 months 6 days | |||
Options Exercisable, Weighted Average Exercise Price | $ 0.50 | |||
Options Exercisable, Number of Shares | 193,725 | |||
Options Exercisable, Weighted Average Remaining Contractual Life | 2 years 7 months 6 days | |||
Range Twelve | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding, Options Exercise Price Range | $ 0.48 | |||
Options Outstanding, Number of Shares | 605,050 | |||
Options Outstanding, Weighted Average Remaining Contractual Life | 3 years 7 months 13 days | |||
Options Exercisable, Weighted Average Exercise Price | $ 0.48 | |||
Options Exercisable, Number of Shares | 151,825 | |||
Options Exercisable, Weighted Average Remaining Contractual Life | 3 years 7 months 13 days | |||
Range Thirteen | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding, Options Exercise Price Range | $ 0.23 | |||
Options Outstanding, Number of Shares | 30,000 | |||
Options Outstanding, Weighted Average Remaining Contractual Life | 3 years 4 months 6 days | |||
Options Exercisable, Weighted Average Exercise Price | $ 0.23 | |||
Options Exercisable, Number of Shares | 30,000 | |||
Options Exercisable, Weighted Average Remaining Contractual Life | 3 years 4 months 6 days |
STOCK RIGHTS PLAN - Additional
STOCK RIGHTS PLAN - Additional Information (Detail) | 1 Months Ended | |
Jul. 31, 2007$ / shares$ / Right | Jul. 08, 2015$ / shares | |
Class of Warrant or Right [Line Items] | ||
Minimum stock percentage accumulated by a single person or group for the rights to become exercisable | 20.00% | |
Rights expiration date | Aug. 6, 2017 | |
Redemption price per right | $ / Right | 0.0001 | |
Price to receive in the merger stock of the Company or the acquiring company | $ 20 | |
Price to purchase one one-hundredth of a share of preferred stock | $ 10 | $ 0.75 |
STOCK REPURCHASE PLAN- Addition
STOCK REPURCHASE PLAN- Additional Information (Detail) | 12 Months Ended |
Jun. 30, 2009USD ($)shares | |
Equity, Class of Treasury Stock [Line Items] | |
Shares purchased, shares | shares | 404,710 |
Stock Repurchased During Period, Value | $ | $ 558,000 |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Detail) - Movie Q | 12 Months Ended |
Jun. 30, 2016ft²Unit | |
Minimum | |
Segment Reporting Information [Line Items] | |
Store facility area | 1,200 |
Maximum | |
Segment Reporting Information [Line Items] | |
Store facility area | 1,600 |
Unit selections offered to a customer | Unit | 10,000 |
SEGMENT REVENUES, OPERATING LOS
SEGMENT REVENUES, OPERATING LOSS AND TOTAL ASSETS (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 37,570 | $ 21,581 | $ 25,733 |
Operating loss | (8,909) | (2,954) | (2,950) |
Total Assets | 20,542 | 13,380 | 17,049 |
Point.360 | |||
Segment Reporting Information [Line Items] | |||
Revenue | 37,315 | 21,225 | 25,281 |
Operating loss | (8,326) | (2,531) | (2,296) |
Total Assets | 20,225 | 12,601 | 16,204 |
Movie Q | |||
Segment Reporting Information [Line Items] | |||
Revenue | 255 | 356 | 452 |
Operating loss | (601) | (424) | (654) |
Total Assets | $ 622 | $ 779 | $ 845 |
ACQUISITION OF ASSETS OF MODE56
ACQUISITION OF ASSETS OF MODERN VIDEOFILM, INC. - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jul. 08, 2015 | Jul. 31, 2007 |
Acquisition Of Assets Of Modern Video Film [Line Items] | ||
Stock Issued During Period, Shares, Other | 2,000,000 | |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 800,000 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.75 | $ 10 |
Line of Credit Facility, Borrowing Capacity, Description | amount not to exceed the remaining $5.0 million | |
Proceeds from Issuance of Common Stock | $ 1,417 | |
Business Acquisition assets and liabilities acquired credit to retained earnings | $ 6,800 | |
Medley Capital Corporation [Member] | ||
Acquisition Of Assets Of Modern Video Film [Line Items] | ||
Debt Instrument, Term | 5 years | |
Warrants To Purchase Of Common Stock | 500,000 | |
Term Loan One [Member] | ||
Acquisition Of Assets Of Modern Video Film [Line Items] | ||
Debt Instrument, Face Amount | $ 6,000 | |
Term Loan Two [Member] | ||
Acquisition Of Assets Of Modern Video Film [Line Items] | ||
Debt Instrument, Face Amount | $ 1,000 |
TANGIBLE AND INTANGIBLE ASSETS
TANGIBLE AND INTANGIBLE ASSETS AND LIABILITIES BASED ON ESTIMATED FAIR VALUES (Detail) | Jun. 30, 2016USD ($) |
Allocation of Purchase Price for MVF [Line Items] | |
Current assets | $ 3,173,000 |
Property and equipment | 5,359,000 |
Other assets | 118,000 |
Acquired intangibles: | |
Total fair value of assets acquired | 9,000,000 |
Total liabilities assumed | (770,000) |
Net assets acquired | 8,230,000 |
Common stock consideration | (1,417,000) |
Gain before deferred income tax benefit | 6,813,000 |
Income tax benefit - deferred | (2,714,000) |
Gain on bargain purchase | 4,099,000 |
Customer Relationships [Member] | |
Acquired intangibles: | |
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Intangible Assets Other Than Goodwill | 200,000 |
Trade Names [Member] | |
Acquired intangibles: | |
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Intangible Assets Other Than Goodwill | $ 150,000 |
PRO FORMA UNAUDITED CONDENSED C
PRO FORMA UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION (Detail) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Business Acquisition, Pro Forma Information [Line Items] | ||
Revenue | $ 37,570,000 | $ 65,150,000 |
Net loss | $ (1,758,000) | $ (6,447,000) |
Net Loss per share | $ (0.14) | $ (0.51) |
Schedule II - Valuation and Q59
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | $ 249,000 | $ 228,000 | $ 327,000 |
Charged to Costs and Expenses | 38,000 | 21,000 | 26,000 |
Other | 12,000 | 0 | 0 |
Deductions/Write-Offs | (6,000) | 0 | (125,000) |
Balance at End of Year | $ 293,000 | $ 249,000 | $ 228,000 |