Document And Entity Information
Document And Entity Information | 6 Months Ended |
Dec. 31, 2016shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2016 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q2 |
Entity Registrant Name | Point.360 |
Entity Central Index Key | 1,398,797 |
Current Fiscal Year End Date | --06-30 |
Entity Filer Category | Smaller Reporting Company |
Trading Symbol | PTSX |
Entity Common Stock, Shares Outstanding | 12,740,506 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 37 | $ 49 |
Accounts receivable, net of allowances for doubtful accounts of $293 and $305, respectively | 4,002 | 4,729 |
Inventories, net | 143 | 127 |
Prepaid expenses and other current assets | 864 | 498 |
Total current assets | 5,046 | 5,403 |
Property and equipment, net | 5,758 | 13,924 |
Other assets, net | 1,323 | 1,215 |
Total assets | 12,127 | 20,542 |
Current liabilities: | ||
Current portion of notes payable | 1,063 | 5,142 |
Current portion of capital lease obligations | 113 | 102 |
Accounts payable | 1,116 | 838 |
Accrued wages and benefits | 1,776 | 2,057 |
Other accrued expenses | 205 | 188 |
Current portion of deferred gain on sale of real estate | 313 | 178 |
Current portion of deferred lease incentive | 209 | 209 |
Total current liabilities | 4,795 | 8,714 |
Capital lease obligations, less current portion | 142 | 79 |
Deferred gain on sale of real estate, less current portion | 1,689 | 668 |
Deferred lease incentive, less current portion | 679 | 783 |
Notes payable, less current portion | 6,100 | 5,868 |
Total long-term liabilities | 8,610 | 7,398 |
Total liabilities | 13,405 | 16,112 |
Commitments and contingencies (Note 5) | ||
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; 12,630,506 and 12,740,506 shares issued and outstanding on June 30, 2016 and December 31, 2016, respectively | 22,978 | 22,924 |
Additional paid-in capital | 12,107 | 11,916 |
Accumulated deficit | (36,363) | (30,410) |
Total shareholders’ equity | (1,278) | 4,430 |
Total liabilities and shareholders’ equity | $ 12,127 | $ 20,542 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Accounts receivable, allowances for doubtful accounts | $ 305 | $ 293 |
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 | 12,740,506 | 12,630,506 |
Common stock, shares outstanding | 12,740,506 | 12,630,506 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | $ 6,556,000 | $ 9,693,000 | $ 14,571,000 | $ 20,454,000 |
Cost of services sold | (6,199,000) | (7,737,000) | (12,576,000) | (15,357,000) |
Gross profit | 357,000 | 1,956,000 | 1,995,000 | 5,097,000 |
Selling, general and administrative expense | (4,036,000) | (4,490,000) | (8,000,000) | (9,106,000) |
Operating loss | (3,679,000) | (2,534,000) | (6,005,000) | (4,009,000) |
Interest expense | (142,000) | (104,000) | (321,000) | (214,000) |
Gain on bargain asset purchase | 0 | 0 | 0 | 4,099,000 |
Other income | 194,000 | 326,000 | 373,000 | 487,000 |
Income (loss) before income taxes | (3,627,000) | (2,312,000) | (5,953,000) | 363,000 |
Income tax (expense) - current | 0 | (2,000) | 0 | (5,000) |
Income tax benefit - deferred | 0 | 0 | 0 | 2,714,000 |
Net income (loss) | $ (3,627,000) | $ (2,314,000) | $ (5,953,000) | $ 3,072,000 |
Net income (loss) | $ (0.28) | $ (0.18) | $ (0.47) | $ 0.25 |
Weighted average number of shares | 12,740,506 | 12,559,424 | 12,708,821 | 12,450,339 |
Net income (loss) | $ (0.28) | $ (0.18) | $ (0.47) | $ 0.23 |
Weighted average number of shares including the dilutive effect of stock options | 12,740,506 | 12,559,424 | 12,708,821 | 13,154,282 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (5,953,000) | $ 3,072,000 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Gain on bargain asset purchase | 0 | (4,099,000) |
Income tax benefit - deferred | 0 | (2,714,000) |
Depreciation and amortization | 1,158,000 | 1,033,000 |
Amortization of deferred gain on real estate | (309,000) | (88,000) |
Amortization of deferred lease credit | (105,000) | (105,000) |
Provision for doubtful accounts | 12,000 | (160,000) |
Stock compensation expense | 191,000 | 160,000 |
Issuance of common stock | 54,000 | 34,000 |
Changes in operating assets and liabilities: | ||
(Increase) decrease in accounts receivable | 715,000 | (26,000) |
Decrease (increase) in inventories | (16,000) | 20,000 |
(Increase) in prepaid expenses and other current assets | (349,000) | (304,000) |
(Increase) in other assets | (140,000) | (202,000) |
(Increase) in deferred tax asset | 0 | (305,000) |
Increase in accounts payable | 279,000 | 418,000 |
Increase (decrease) in accrued wages and benefits | (281,000) | 587,000 |
Increase in other accrued expenses | 17,000 | 118,000 |
Increase in other liabilities | 22,000 | 0 |
Increase in deferred taxes payable | 0 | 305,000 |
Net cash used in operating activities | (4,705,000) | (2,256,000) |
Cash flows from investing activities: | ||
Proceeds from sale of fixed assets | 9,800,000 | 0 |
Capital expenditures | (1,178,000) | (585,000) |
Net cash provided by (used in) investing activities | 8,622,000 | (585,000) |
Cash flows from financing activities: | ||
Borrowings from revolving credit agreement | 638,000 | 699,000 |
Borrowings of notes payable | 215,000 | 3,000,000 |
Repayment of notes payable | (4,718,000) | (111,000) |
Payment of capital lease obligations | (64,000) | (27,000) |
Net cash provided by (used in) financing activities | (3,929,000) | 3,561,000 |
Net increase (decrease) in cash and cash equivalents | (12,000) | 720,000 |
Cash and cash equivalents at beginning of period | 49,000 | 22,000 |
Cash and cash equivalents at end of period | 37,000 | 742,000 |
Cash payments for income taxes (net of refunds) | 0 | 5,000 |
Cash payments for interest | 148,000 | 208,000 |
Assets acquired under capital lease | 138,000 | 29,000 |
Purchase of assets for common stock and warrants | 0 | 1,417,000 |
Non-cash deferred interest expense | $ 0 | $ 165,000 |
THE COMPANY
THE COMPANY | 6 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | |
THE COMPANY | Note 1 THE COMPANY Point.360 (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 the 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 two 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 December 31, 2016, the Company had two 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 unaudited Condensed 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 interim financial statements and footnotes. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. All intercompany balances and transactions have been eliminated in the Condensed Consolidated Financial Statements. Operating results for the three and six month periods ended December 31, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2017. These financial statements should be read in conjunction with the financial statements and related notes contained in the Company’s Form 10-K for the period ended June 30, 2016. Pro Forma Earnings (Loss) Per Share Three Months Three Months Six Months Six Months Ended Ended Ended Ended December 31, December 31, December 31, December 31, 2015 2016 2015 2016 Pro forma weighted average of number of shares Weighted average number of common shares outstanding used in computation of basic EPS 12,559 12,741 12,450 12,709 Dilutive effect of outstanding stock options - - 704 - Weighted average number of common and potential Common shares outstanding used in computation of Diluted EPS 12,559 12,741 13,154 12,709 Effect of dilutive options excluded in the computation of diluted EPS due to net loss 998 12 - 31 The weighted average number of common shares outstanding were the same amount for both basic and diluted loss per share in the three month periods ended December 31, 2015 and 2016 and the six-month period ended December 31, 2016. The effect of potentially dilutive securities for those 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 higher earnings per share, or lower loss per share, respectively). There were 1,393,016 1,232,850 Fair Value Measurements 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, the only Level 1 input applicable to the Company (there are no Level 2 or 3 inputs), is stated on the Condensed Consolidated Balance Sheets at fair value. As of December 31, 2016 the carrying value of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other current liabilities approximates fair value due to the short-term nature of such instruments. The carrying value of capital lease obligations, notes payable and other long-term liabilities approximates fair value as the related interest rates approximate rates currently available to the Company. |
ACQUISITION OF ASSETS OF MODERN
ACQUISITION OF ASSETS OF MODERN VIDEOFILM, INC. | 6 Months Ended |
Dec. 31, 2016 | |
Acquisition Of Asset [Abstract] | |
ACQUISITION OF ASSETS OF MODERN VIDEOFILM, INC. | NOTE 2 - 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 1,417,000 165,000 The Condensed 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 name 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 asset 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. |
NOTES PAYABLE AND CAPITAL LEASE
NOTES PAYABLE AND CAPITAL LEASE OBLIGATIONS | 6 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE AND CAPITAL LEASE OBLIGATIONS | NOTE 3 - NOTES PAYABLE AND CAPITAL LEASE OBLIGATIONS Revolving Credit Facility. 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 Amounts due under the mortgage were 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 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. EBITDA and interest expense was to 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 July 2016, the Company entered into a three-year credit agreement which, as amended in September 2016, provided for $ 4 85 0.55 6.6 0.5 0.4 1.1 Due to the Company’s failure to meet financial covenants, the balance owed for the mortgage debt was classified as a current liability in the condensed consolidated balance sheet as of June 30, 2016. The mortgage was paid off upon sale of the building in October 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 6,000,000 We must pay monthly interest in arrears on the unpaid principal balance of the 175,000 2017 $ 113,000 2018 58,000 2019 31,000 2020 6,205,000 2021 24,000 Thereafter - Total: $ 6,431,000 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 6 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 4- 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 2.1 2.0 On October 11, 2016, the Company sold to HWAY LLC, a California limited liability company (“HWAY”), all of its right, title and interest in and to certain land and improvements located at 1122 and 1133 North Hollywood Way, Burbank, CA (the “Property”) pursuant to a Standard Offer, Agreement and Escrow Instructions for Purchase of Real Estate (the “Purchase Agreement”). Concurrently, the Company leased the Property from HWAY pursuant to a Standard Industrial/Commercial Single-Tenant Lease (the “Lease Agreement”, and together with the Purchase Agreement, the “Sale and Leaseback”). Haig Bagerdjian, Chief Executive Officer, director and majority shareholder of the Company, holds a 99 Pursuant to the Purchase Agreement, the Company sold the Property to HWAY for a purchase price of $ 9.8 4.8 4.6 0.3 1.2 Under the Lease Agreement, the Company will continue to occupy the Property consisting of 31,259 3,732 11 October 31, 2027 Beginning with the Commencement Date, the monthly base rent under the Lease will be $ 65,644 3 Machinery and equipment $ 43,932,000 Leasehold improvements 9,162,000 Computer equipment 8,293,000 Equipment under capital lease 1,359,000 Office equipment, vehicles, CIP 818,000 Subtotal 63,564,000 Less accumulated depreciation and amortization (57,806,000) Property and equipment, net $ 5,758,000 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 5- COMMITMENTS AND CONTINGENCIES From time to time, the Company may become a party to legal actions and complaints arising in the ordinary course of business, although it is not currently involved in any such material legal proceedings. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 6- INCOME TAXES The Company reviewed its Accounting Standards Codification (“ASC”) 740-10 documentation for the periods through December 31, 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 December 31, 2016. Based on Company’s review of its tax positions as of December 31, 2016, no new uncertain tax positions have been identified; nor has new information become available that would change management’s judgment with respect to tax positions previously taken. During the six months ended December 31, 2016, the Company recorded a deferred tax benefit in the amount of $ 2.7 40 6.8 2.7 6.8 40 As of December 31, 2016, the Company had no net deferred tax assets because future realizability of such benefit was not considered to be more likely than not. The ASC 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. |
STOCK OPTION PLAN, STOCK-BASED
STOCK OPTION PLAN, STOCK-BASED COMPENSATION | 6 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
STOCK OPTION PLAN, STOCK-BASED COMPENSATION | NOTE 7- 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 the Condensed 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 Condensed Consolidated Statements of Operations. Stock-based compensation expense recognized in the Condensed Consolidated Statements of Operations for the three and six month periods ended December 31, 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, stock-based compensation is attributed to expense using the straight-line single option method. As stock-based compensation expense recognized in the Condensed Consolidated Statements of Operations for the periods reported in this Form 10-Q 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 period being reported in this Form 10-Q, expected forfeitures are immaterial. The Company will re-assess the impact of forfeitures if actual forfeitures increase in future quarters. Three months ended December 31, 2015 $ 94,000 Three months ended December 31, 2016 $ 102,000 Six months ended December 31, 2015 $ 160,000 Six months ended December 31, 2016 $ 191,000 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. 2007 Plan 2010 Plan Options Average Exercise Options Average Exercise Granted Price per Share Granted Price per Share Three months ended December 31, 2015 30,000 $ 1.04 - - Three months ended December 31, 2016 - - 30,000 $ 0.41 Six months ended December 31, 2015 95,000 $ 1.01 - - Six months ended December 31, 2016 - - 160,000 $ 0.56 2007 Plan 2010 Plan Total Options originally available 2,000,000 4,000,000 6,000,000 Stock options outstanding 1,805,400 1,141,700 2,947,100 Options available for grant 78,835 2,734,725 2,813,560 Weighted Average Number Weighted Average Grant Date of Shares Exercise Price Fair Value Balance at June 30, 2016 2,961,350 $ 0.72 $ 0.57 Granted 130,000 $ 0.60 $ 0.55 Exercised (110,000) $ 0.49 $ 0.41 Cancelled (32,625) $ 0.91 $ 0.80 Balance at September 30, 2016 2,948,725 $ 0.72 $ 0.57 Granted 30,000 $ 0.41 $ 0.38 Exercised - $ - $ - Cancelled (31,625) $ 0.96 $ 0.57 Balance at December 31, 2016 2,947,100 $ 0.71 $ 0.57 |
STOCK RIGHTS PROGRAM
STOCK RIGHTS PROGRAM | 6 Months Ended |
Dec. 31, 2016 | |
Stock Rights Program [Abstract] | |
STOCK RIGHTS PROGRAM | NOTE 8- STOCK RIGHTS PROGRAM 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 six months ended December 31, 2016. |
SHAREHOLDER'S EQUITY
SHAREHOLDER'S EQUITY | 6 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDER'S EQUITY | NOTE 9- SHAREHOLDER’S EQUITY Common Paid-in Accumulated Shareholders’ Stock Capital (Deficit) Equity Balance, June 30, 2016 $ 22,924 $ 11,916 $ (30,410) $ 4,430 Stock option exercises 54 - - 54 Stock-based compensation expense - 89 - 89 Net loss - - (2,326) (2,326) Balance, September 30, 2016 $ 22,978 $ 12,005 $ (32,736) $ 2,247 Stock-based compensation expense - 102 - 102 Net loss - - (3,627) (3,627) Balance, December 31, 2016 $ 22,978 $ 12,107 $ (36,363) $ (1,278) |
STOCK REPURCHASE PLAN
STOCK REPURCHASE PLAN | 6 Months Ended |
Dec. 31, 2016 | |
Stock Repurchase Plan [Abstract] | |
STOCK REPURCHASE PLAN | NOTE 10- STOCK REPURCHASE PLAN In February 2008, the Company’s Board of Directors authorized a stock repurchase program. Under the stock repurchase program, the Company may purchase outstanding shares of its common stock on the open market at such times and prices determined in the sole discretion of management. No shares were acquired pursuant to the repurchase program during the six months ended December 31, 2016. |
GOING CONCERN
GOING CONCERN | 6 Months Ended |
Dec. 31, 2016 | |
Going Concern [Abstract] | |
GOING CONCERN | NOTE 11- GOING CONCERN The condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. As reflected in the condensed consolidated financial statements, the Company had an accumulated deficit at December 31, 2016, and a net loss and net cash used in operating activities for the reporting period then ended. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent upon its ability to further implement its business plan and generate sufficient revenue and cash flow. The condensed consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts, or the amounts and classification of liabilities that might be necessary if the Company is unable to continue as a going concern. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | NOTE 12- 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 the three and six month periods ended December 31, 2015 and 2016. Allocations for internal resources were made for the periods. 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 The Point.360 segment provides high definition and standard definition digital mastering, data conversion, video and film asset management and other services to owners, producers and distributors of entertainment and advertising content. Point.360 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 segment’s interconnected facilities provide service coverage to all major U.S. media centers. Clients include major motion picture studios and independent producers. Movie>Q 1,200 1,600 10,000 Three Months Six Months Ended Ended Revenue December 31, December 31, 2015 2016 2015 2016 Point.360 $ 9,625 $ 6,523 $ 20,325 $ 14,490 Movie>Q 68 33 129 81 Consolidated revenue $ 9,693 $ 6,556 $ 20,454 $ 14,571 Three Months Six Months Ended Ended Operating loss December 31, December 31, 2015 2016 2015 2016 Point.360 $ (2,386) $ (3,529) $ (3,727) $ (5,680) Movie>Q (148) (150) (282) (325) Operating loss $ (2,534) $ (3,679) $ (4,009) $ (6,005) Total Assets June 30, December 31, 2016 2016 Point.360 $ 19,920 $ 12,098 Movie>Q 622 448 Consolidated assets $ 20,542 $ 12,546 |
THE COMPANY (Tables)
THE COMPANY (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | |
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 earnings per share (“EPS”) computation to the denominator of the diluted EPS computation is as follows (in thousands): Three Months Three Months Six Months Six Months Ended Ended Ended Ended December 31, December 31, December 31, December 31, 2015 2016 2015 2016 Pro forma weighted average of number of shares Weighted average number of common shares outstanding used in computation of basic EPS 12,559 12,741 12,450 12,709 Dilutive effect of outstanding stock options - - 704 - Weighted average number of common and potential Common shares outstanding used in computation of Diluted EPS 12,559 12,741 13,154 12,709 Effect of dilutive options excluded in the computation of diluted EPS due to net loss 998 12 - 31 |
ACQUISITION OF ASSETS OF MODE19
ACQUISITION OF ASSETS OF MODERN VIDEOFILM, INC. (Tables) | 6 Months Ended |
Dec. 31, 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 name 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 asset purchase $ 4,099,000 |
NOTES PAYABLE AND CAPITAL LEA20
NOTES PAYABLE AND CAPITAL LEASE OBLIGATIONS (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Annual Maturities for Debt Under Term Loan and Capital Lease Obligations | Annual maturities for debt under Term Loan and capital lease obligations as of December 31, 2016 are as follows: 2017 $ 113,000 2018 58,000 2019 31,000 2020 6,205,000 2021 24,000 Thereafter - Total: $ 6,431,000 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment consist of the following as of December 31, 2016: Machinery and equipment $ 43,932,000 Leasehold improvements 9,162,000 Computer equipment 8,293,000 Equipment under capital lease 1,359,000 Office equipment, vehicles, CIP 818,000 Subtotal 63,564,000 Less accumulated depreciation and amortization (57,806,000) Property and equipment, net $ 5,758,000 |
STOCK OPTION PLAN, STOCK-BASE22
STOCK OPTION PLAN, STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
Stock-based Compensation Expense Related To Employee or Director Stock Options | Stock-based compensation expense related to employee or director stock options recognized for the three and six month periods ended December 31, 2015 and 2016 was as follows: Three months ended December 31, 2015 $ 94,000 Three months ended December 31, 2016 $ 102,000 Six months ended December 31, 2015 $ 160,000 Six months ended December 31, 2016 $ 191,000 |
Company Granted Awards Of Stock Options | During each of the three and six month periods ended December 31, 2015 and 2016, the Company granted awards of stock options as follows: 2007 Plan 2010 Plan Options Average Exercise Options Average Exercise Granted Price per Share Granted Price per Share Three months ended December 31, 2015 30,000 $ 1.04 - - Three months ended December 31, 2016 - - 30,000 $ 0.41 Six months ended December 31, 2015 95,000 $ 1.01 - - Six months ended December 31, 2016 - - 160,000 $ 0.56 |
Summary of Status of Stock Plans | The following table summarizes the status of the 2007 and 2010 Plans as of December 31, 2016: 2007 Plan 2010 Plan Total Options originally available 2,000,000 4,000,000 6,000,000 Stock options outstanding 1,805,400 1,141,700 2,947,100 Options available for grant 78,835 2,734,725 2,813,560 |
Summary of Stock Options Transactions | Transactions involving stock options are summarized as follows: Weighted Average Number Weighted Average Grant Date of Shares Exercise Price Fair Value Balance at June 30, 2016 2,961,350 $ 0.72 $ 0.57 Granted 130,000 $ 0.60 $ 0.55 Exercised (110,000) $ 0.49 $ 0.41 Cancelled (32,625) $ 0.91 $ 0.80 Balance at September 30, 2016 2,948,725 $ 0.72 $ 0.57 Granted 30,000 $ 0.41 $ 0.38 Exercised - $ - $ - Cancelled (31,625) $ 0.96 $ 0.57 Balance at December 31, 2016 2,947,100 $ 0.71 $ 0.57 |
SHAREHOLDER'S EQUITY (Tables)
SHAREHOLDER'S EQUITY (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Components of shareholders' equity | The following table analyzes the components of shareholders’ equity from June 30, 2016 to December 31, 2016 (in thousands): Common Paid-in Accumulated Shareholders’ Stock Capital (Deficit) Equity Balance, June 30, 2016 $ 22,924 $ 11,916 $ (30,410) $ 4,430 Stock option exercises 54 - - 54 Stock-based compensation expense - 89 - 89 Net loss - - (2,326) (2,326) Balance, September 30, 2016 $ 22,978 $ 12,005 $ (32,736) $ 2,247 Stock-based compensation expense - 102 - 102 Net loss - - (3,627) (3,627) Balance, December 31, 2016 $ 22,978 $ 12,107 $ (36,363) $ (1,278) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Revenues, Operating Loss and Total Assets | Segment revenues, operating loss and total assets were as follows (in thousands): Three Months Six Months Ended Ended Revenue December 31, December 31, 2015 2016 2015 2016 Point.360 $ 9,625 $ 6,523 $ 20,325 $ 14,490 Movie>Q 68 33 129 81 Consolidated revenue $ 9,693 $ 6,556 $ 20,454 $ 14,571 Three Months Six Months Ended Ended Operating loss December 31, December 31, 2015 2016 2015 2016 Point.360 $ (2,386) $ (3,529) $ (3,727) $ (5,680) Movie>Q (148) (150) (282) (325) Operating loss $ (2,534) $ (3,679) $ (4,009) $ (6,005) Total Assets June 30, December 31, 2016 2016 Point.360 $ 19,920 $ 12,098 Movie>Q 622 448 Consolidated assets $ 20,542 $ 12,546 |
THE COMPANY - Additional Inform
THE COMPANY - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016ft²shares | Dec. 31, 2015shares | Dec. 31, 2016ft²Unitshares | Dec. 31, 2015shares | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||
Number of business segments | 2 | |||
Effect of dilutive options excluded in the computation of diluted EPS due to net loss | shares | 12,000 | 998,000 | 31,000 | 0 |
Minimum | ||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||
Store facility area | 1,200 | 1,200 | ||
Effect of dilutive options excluded in the computation of diluted EPS due to net loss | shares | 1,393,016 | |||
Maximum | ||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||
Store facility area | 1,600 | 1,600 | ||
Unit selections offered to a customer | 10,000 | |||
Effect of dilutive options excluded in the computation of diluted EPS due to net loss | shares | 1,232,850 | |||
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 | 3 | ||
Movie Q | Minimum | ||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||
Store facility area | 1,200 | 1,200 | ||
Movie Q | Maximum | ||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | ||||
Store facility area | 1,600 | 1,600 | ||
Unit selections offered to a customer | Unit | 10,000 |
RECONCILIATION OF DENOMINATOR O
RECONCILIATION OF DENOMINATOR OF BASIC EARNINGS PER SHARE COMPUTATION TO DENOMINATOR OF DILUTED EARNINGS PER SHARE COMPUTATION (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pro forma weighted average of number of shares | ||||
Weighted average number of common shares outstanding used in computation of basic EPS | 12,740,506 | 12,559,424 | 12,708,821 | 12,450,339 |
Dilutive effect of outstanding stock options | 0 | 0 | 0 | 704,000 |
Weighted average number of common and potential Common shares outstanding used in computation of Diluted EPS | 12,740,506 | 12,559,424 | 12,708,821 | 13,154,282 |
Effect of dilutive options excluded in the computation of diluted EPS due to net loss | 12,000 | 998,000 | 31,000 | 0 |
ACQUISITION OF ASSETS OF MODE27
ACQUISITION OF ASSETS OF MODERN VIDEOFILM, INC. - Additional Information (Detail) - USD ($) | 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 | $ 1,417,000 | |
Proceeds from Issuance of Warrants | 165,000 | |
Business Acquisition assets and liabilities acquired credit to retained earnings | $ 6,800,000 | |
Medley Capital Corporation [Member] | ||
Acquisition Of Assets Of Modern Video Film [Line Items] | ||
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 | $ 6,000,000 | |
Term Loan Two [Member] | ||
Acquisition Of Assets Of Modern Video Film [Line Items] | ||
Debt Instrument, Face Amount | $ 1,000,000 | |
Loan Agreements [Member] | ||
Acquisition Of Assets Of Modern Video Film [Line Items] | ||
Debt Instrument, Term | 5 years |
TANGIBLE AND INTANGIBLE ASSETS
TANGIBLE AND INTANGIBLE ASSETS AND LIABILITIES BASED ON ESTIMATED FAIR VALUES (Detail) | Dec. 31, 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 asset 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 |
NOTES PAYABLE AND CAPITAL LEA29
NOTES PAYABLE AND CAPITAL LEASE OBLIGATIONS - Additional Information (Detail) - USD ($) | Jul. 08, 2015 | Jul. 31, 2016 | Feb. 28, 2015 | Dec. 31, 2016 | Dec. 31, 2016 |
First Anniversary [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | ||||
Second Anniversary [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.40% | ||||
Three Year Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit agreement | $ 4,000,000 | ||||
Line of Credit Facility, Interest Rate Description | The loan and security agreement as amended provided for interest at prime rate plus 1.0% (4.75% as of December 31, 2016) | ||||
Percentage Of Acceptable Accounts Receivable | 85.00% | ||||
Monthly Collateral Management Fees Percentage | 0.55% | ||||
Annual Collateral Management Fees Percentage | 6.60% | ||||
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 | $ 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 | 3,100,000 | |||
Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Credit agreement | 2,000,000 | 2,000,000 | |||
Equipment Financing Facilities | |||||
Debt Instrument [Line Items] | |||||
Credit agreement | 1,250,000 | 1,250,000 | |||
Repayments of Lines of Credit | $ 200,000 | ||||
Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Long-term Line of Credit | 1,100,000 | 1,100,000 | |||
Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Increase, Accrued Interest | $ 175,000 | $ 175,000 | |||
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 | Term Loan at a rate per annum equal to three-month LIBOR plus 6.00% (6.94% as of December 31, 2016). | ||||
Debt Instrument, Term | 5 years | ||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 6,000,000 |
NOTES PAYABLE AND CAPITAL LEA30
NOTES PAYABLE AND CAPITAL LEASE OBLIGATIONS (Details) | Dec. 31, 2016USD ($) |
2,017 | $ 113,000 |
2,018 | 58,000 |
2,019 | 31,000 |
2,020 | 6,205,000 |
2,021 | 24,000 |
Thereafter | 0 |
Total: | $ 6,431,000 |
PROPERTY AND EQUIPMENT - Additi
PROPERTY AND EQUIPMENT - Additional Information (Detail) | Oct. 11, 2016USD ($)ft² | Apr. 01, 2012USD ($) | Mar. 31, 2006USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2016USD ($) |
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 | ||||
Bank of the West [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Repayments of Secured Debt | $ 4,600,000 | ||||
Haig Bagerdjian [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 99.00% | ||||
HWAY LLC [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Sale and leaseback transaction, real estate sold, after tax gain | $ 1,200,000 | ||||
Sale Leaseback Transaction, Monthly Rental Payments | 65,644 | ||||
Sale Leaseback Transaction, Sale Value Of Assets | 9,800,000 | ||||
Sale Leaseback Transaction, Net Proceeds, Investing Activities | 4,800,000 | ||||
Security Deposit | $ 300,000 | ||||
Lease Expiration Term | 11 years | ||||
Sale Leaseback Transaction, Lease Extension Terms | The Lease may be extended for two five-year option periods; however such options may not be exercised if (i) the Company is sold to another person, or (ii) if Mr. Bagerdjian and/or his affiliates cease to be a controlling shareholder of the Company. | ||||
Sale Leaseback Transaction, Annual Increase Rate | 3.00% | ||||
Lease Expiration Date | Oct. 31, 2027 | ||||
HWAY LLC [Member] | Building | |||||
Property, Plant and Equipment [Line Items] | |||||
Land Subject to Ground Leases | ft² | 31,259 | ||||
HWAY LLC [Member] | Parking Lot [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Land Subject to Ground Leases | ft² | 3,732 |
PROPERTY AND EQUIPMENT (Detail)
PROPERTY AND EQUIPMENT (Detail) - USD ($) | Dec. 31, 2016 | Jun. 30, 2016 |
Property, Plant and Equipment [Line Items] | ||
Machinery and equipment | $ 43,932,000 | |
Leasehold improvements | 9,162,000 | |
Computer equipment | 8,293,000 | |
Equipment under capital lease | 1,359,000 | |
Office equipment, vehicles, CIP | 818,000 | |
Subtotal | 63,564,000 | |
Less accumulated depreciation and amortization | (57,806,000) | |
Property and equipment, net | $ 5,758,000 | $ 13,924,000 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Line Items] | ||||
Deferred Income Tax Expense (Benefit) | $ 0 | $ 0 | $ 0 | $ (2,714,000) |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 40.00% | |||
Deferred Tax Liabilities, Gross | $ 2,700,000 | $ 2,700,000 | ||
Gain Deferred Income Tax Benefit | $ 6,800,000 |
STOCK OPTION PLAN, STOCK-BASE34
STOCK OPTION PLAN, STOCK-BASED COMPENSATION - Additional Information (Detail) - Stock Option | Dec. 31, 2016shares |
2007 Equity Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options originally available | 2,000,000 |
2010 Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options originally available | 4,000,000 |
RECOGNIZED STOCK-BASED COMPENSA
RECOGNIZED STOCK-BASED COMPENSATION (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense related to employee or director stock options recognized | $ 102,000 | $ 94,000 | $ 191,000 | $ 160,000 |
COMPANY GRANTED AWARDS OF STOCK
COMPANY GRANTED AWARDS OF STOCK OPTIONS (Detail) - $ / shares | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | |||||
Options Granted | 30,000 | 130,000 | |||
Average Exercise Price per Share | $ 0.41 | $ 0.60 | |||
2007 Equity Incentive Plan | |||||
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | |||||
Options Granted | 0 | 30,000 | 0 | 95,000 | |
Average Exercise Price per Share | $ 0 | $ 1.04 | $ 0 | $ 1.01 | |
2010 Incentive Plan | |||||
Share-Based Compensation Arrangement By Share-Based Payment Award [Line Items] | |||||
Options Granted | 30,000 | 0 | 160,000 | 0 | |
Average Exercise Price per Share | $ 0.41 | $ 0 | $ 0.56 | $ 0 |
SUMMARY OF STATUS OF STOCK PLAN
SUMMARY OF STATUS OF STOCK PLANS (Detail) - shares | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding | 2,947,100 | 2,948,725 | 2,961,350 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options originally available | 6,000,000 | ||
Stock options outstanding | 2,947,100 | ||
Options available for grant | 2,813,560 | ||
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 | 1,805,400 | ||
Options available for grant | 78,835 | ||
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 | 1,141,700 | ||
Options available for grant | 2,734,725 |
SUMMARY OF STOCK OPTIONS TRANSA
SUMMARY OF STOCK OPTIONS TRANSACTIONS (Detail) - $ / shares | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2016 | |
Number of Shares | |||
Balance | 2,948,725 | 2,961,350 | 2,961,350 |
Granted | 30,000 | 130,000 | |
Exercised | 0 | (110,000) | |
Cancelled | (31,625) | (32,625) | |
Balance | 2,947,100 | 2,948,725 | 2,947,100 |
Weighted Average Exercise Price | |||
Balance | $ 0.72 | $ 0.72 | $ 0.72 |
Granted | 0.41 | 0.60 | |
Exercised | 0 | 0.49 | |
Cancelled | 0.96 | 0.91 | |
Balance | 0.71 | 0.72 | 0.71 |
Weighted Average Grant Date Fair Value | |||
Balance | 0.57 | 0.57 | 0.57 |
Granted | 0.38 | 0.55 | |
Exercised | 0 | 0.41 | |
Cancelled | 0.57 | 0.80 | |
Balance | $ 0.57 | $ 0.57 | $ 0.57 |
STOCK RIGHTS PROGRAM - Addition
STOCK RIGHTS PROGRAM - 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 |
COMPONENTS OF SHAREHOLDERS' EQU
COMPONENTS OF SHAREHOLDERS' EQUITY (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Balance | $ 2,247,000 | $ 4,430,000 | $ 4,430,000 | ||
Stock option exercises | 54,000 | ||||
Stock-based compensation expense | 102,000 | 89,000 | |||
Net loss | (3,627,000) | (2,326,000) | $ (2,314,000) | (5,953,000) | $ 3,072,000 |
Balance | (1,278,000) | 2,247,000 | (1,278,000) | ||
Common Stock | |||||
Balance | 22,978,000 | 22,924,000 | 22,924,000 | ||
Stock option exercises | 54,000 | ||||
Stock-based compensation expense | 0 | 0 | |||
Net loss | 0 | 0 | |||
Balance | 22,978,000 | 22,978,000 | 22,978,000 | ||
Paid-in Capital | |||||
Balance | 12,005,000 | 11,916,000 | 11,916,000 | ||
Stock option exercises | 0 | ||||
Stock-based compensation expense | 102,000 | 89,000 | |||
Net loss | 0 | 0 | |||
Balance | 12,107,000 | 12,005,000 | 12,107,000 | ||
Accumulated (Deficit) | |||||
Balance | (32,736,000) | (30,410,000) | (30,410,000) | ||
Stock option exercises | 0 | ||||
Stock-based compensation expense | 0 | 0 | |||
Net loss | (3,627,000) | (2,326,000) | |||
Balance | $ (36,363,000) | $ (32,736,000) | $ (36,363,000) |
SEGMENT INFORMATION - Additiona
SEGMENT INFORMATION - Additional Information (Detail) | 6 Months Ended |
Dec. 31, 2016ft² | |
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 | 10,000 |
SEGMENT REVENUES, OPERATING LOS
SEGMENT REVENUES, OPERATING LOSS AND TOTAL ASSETS (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | |||||
Revenue | $ 6,556,000 | $ 9,693,000 | $ 14,571,000 | $ 20,454,000 | |
Operating loss | (3,679,000) | (2,534,000) | (6,005,000) | (4,009,000) | |
Total Assets | 12,127,000 | 12,127,000 | $ 20,542,000 | ||
Point.360 | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 6,523,000 | 9,625,000 | 14,490,000 | 20,325,000 | |
Operating loss | (3,529,000) | (2,386,000) | (5,680,000) | (3,727,000) | |
Total Assets | 12,098,000 | 12,098,000 | 19,920,000 | ||
Movie Q | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 33,000 | 68,000 | 81,000 | 129,000 | |
Operating loss | (150,000) | $ (148,000) | (325,000) | $ (282,000) | |
Total Assets | $ 448,000 | $ 448,000 | $ 622,000 |