Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Sep. 11, 2014 | Dec. 31, 2013 | |
Document And Entity Information | ' | ' | ' |
Entity Registrant Name | 'PARK CITY GROUP INC | ' | ' |
Entity Central Index Key | '0000050471 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 30-Jun-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--06-30 | ' | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' | ' |
Is Entity a Voluntary Filer? | 'No | ' | ' |
Is Entity's Reporting Status Current? | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $106,100,000 |
Entity Common Stock, Shares Outstanding | ' | 17,106,645 | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Assets | ' | ' |
Cash and cash equivalents | $3,352,559 | $3,616,585 |
Receivables, net of allowance of $70,000 and $190,000 at June 30, 2014 and 2013, respectively | 2,857,983 | 2,383,366 |
Prepaid expenses and other current assets | 250,855 | 403,909 |
Total current assets | 6,461,397 | 6,403,860 |
Property and equipment, net | 740,753 | 671,959 |
Deposits and other assets | 14,866 | 14,866 |
Note receivable | 2,996,664 | 1,622,863 |
Customer relationships | 1,918,019 | 2,340,335 |
Goodwill | 4,805,933 | 4,805,933 |
Capitalized software costs, net | ' | 73,082 |
Total other assets | 9,735,482 | 8,857,079 |
Total assets | 16,937,632 | 15,932,898 |
Liabilities and Stockholders' Equity (Deficit) | ' | ' |
Accounts payable | 738,289 | 653,655 |
Accrued liabilities | 1,801,355 | 1,096,982 |
Deferred revenue | 1,840,811 | 1,777,326 |
Lines of credit | 1,200,000 | 1,200,000 |
Notes payable | 226,900 | 551,421 |
Total current liabilities | 5,807,355 | 5,279,384 |
Notes payable, less current portion | 422,248 | 310,642 |
Other long-term liabilities | 88,948 | 101,500 |
Total liabilities | 6,318,551 | 5,691,526 |
Stockholders' equity: | ' | ' |
Series B Convertible Preferred stock, $0.01 par value, 30,000,000 shares authorized; 411,927 shares issued and outstanding at June 30, 2014 and 2013 | 4,119 | 4,119 |
Common stock, $0.01 par value, 50,000,000 shares authorized; 16,928,025 and 16,128,530 issued and outstanding at June 30, 2014 and June 30, 2013, respectively | 169,280 | 161,285 |
Additional paid-in capital | 46,792,736 | 43,314,986 |
Accumulated deficit | -36,347,054 | -33,239,018 |
Total stockholders' equity | 10,619,081 | 10,241,372 |
Total liabilities and stockholders' equity | $16,937,632 | $15,932,898 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Current assets: | ' | ' |
Receivables, net of allowance | $70,000 | $190,000 |
Stockholders' equity:, | ' | ' |
Series B Convertible Preferred stock, par value | $0.01 | $0.01 |
Series B Convertible Preferred stock, Authorized | 30,000,000 | 30,000,000 |
Series B Convertible Preferred stock, Issued | 411,927 | 411,927 |
Series B Convertible Preferred stock, outstanding | 411,927 | 411,927 |
Common stock, par value | $0.01 | $0.01 |
Common stock, Authorized | 50,000,000 | 50,000,000 |
Common stock, Issued | 16,928,025 | 16,128,530 |
Common stock, outstanding | 16,928,025 | 16,128,530 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Revenue: | ' | ' |
Subscriptions | $9,398,377 | $8,025,025 |
Other revenues | 2,530,039 | 3,293,549 |
Total revenue | 11,928,416 | 11,318,574 |
Operating expenses: | ' | ' |
Cost of revenue and product support | 5,087,973 | 4,490,438 |
Sales and marketing | 4,741,574 | 3,054,361 |
General and administrative | 3,812,265 | 2,474,169 |
Depreciation and Amortization | 879,329 | 901,407 |
Total operating expenses | 14,521,141 | 10,920,375 |
(Loss) income from operations | -2,592,725 | 398,199 |
Other (expense) income: | ' | ' |
Interest income (expense), net | 102,580 | -140,712 |
Total other (expense) income | 102,580 | -140,712 |
(Loss) income before income taxes | -2,490,145 | 257,487 |
Provision for income taxes | ' | ' |
Net (loss) income | -2,490,145 | 257,487 |
Dividends on preferred stock | -617,891 | -911,580 |
Net loss applicable to common shareholders | ($3,108,036) | ($654,093) |
Weighted average shares, basic and diluted | 16,710,000 | 13,246,000 |
Basic and diluted loss per share | ($0.19) | ($0.05) |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Stockholders' Equity (Deficit) (USD $) | Series A Convertible Preferred Stock | Series B Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Beginning Balance, Amount at Jun. 30, 2012 | ' | $4,119 | $161,285 | $43,314,986 | ($33,239,018) | $5,310,121 |
Beginning Balance, Shares at Jun. 30, 2012 | ' | 411,927 | 12,087,431 | ' | ' | ' |
Conversion of Preferred stock, Amount | -7,336 | ' | 24,454 | -17,118 | ' | ' |
Conversion of Preferred stock, Shares | -733,605 | ' | 2,445,371 | ' | ' | ' |
Redemption of Preferred stock, Amount | -22 | ' | ' | -21,698 | ' | -21,720 |
Redemption of Preferred stock, Shares | -2,172 | ' | ' | ' | ' | ' |
Accrued compensation, Amount | ' | ' | 2,770 | 783,573 | ' | 786,343 |
Accrued compensation, Shares | ' | ' | 276,988 | ' | ' | ' |
Dividends, Amount | 501 | ' | ' | 500,559 | 501,060 | ' |
Dividends, Shares | 50,106 | ' | ' | ' | ' | ' |
Preferred Dividends-Declared | ' | ' | ' | ' | -911,580 | -911,580 |
Exercise of Warrants (Cashless), Amount | ' | ' | ' | ' | ' | ' |
Exercise of Warrants, Amount | ' | ' | 306 | -306 | ' | ' |
Exercise of Warrants, Shares | ' | ' | 30,644 | ' | ' | ' |
Charitable Contribution, Amount | ' | ' | ' | ' | ' | ' |
Net Income (loss) | ' | ' | ' | ' | 257,487 | 257,487 |
Ending Balance, Amount at Jun. 30, 2013 | ' | 4,119 | 161,285 | 43,314,986 | -33,239,018 | 10,241,372 |
Ending Balance, Shares at Jun. 30, 2013 | ' | 411,927 | ' | ' | ' | ' |
Accrued compensation, Amount | ' | ' | 3,124 | 1,104,574 | ' | 1,107,698 |
Accrued compensation, Shares | ' | ' | 312,364 | ' | ' | ' |
Preferred Dividends-Declared | ' | ' | ' | ' | -617,891 | -617,891 |
Cash, Amount | ' | ' | 2,771 | 1,644,922 | ' | 1,647,693 |
Cash, Shares | ' | ' | 277,092 | ' | ' | ' |
Charitable Contribution, Amount | ' | ' | 150 | 96,750 | ' | 96,900 |
Charitable Contribution, Shares | ' | ' | 15,000 | ' | ' | ' |
Exercise of Options/Warrants, Amount | ' | ' | 1,950 | 631,504 | ' | 633,454 |
Exercise of Options/Warrants, Shares | ' | ' | 195,039 | ' | ' | ' |
Net Income (loss) | ' | ' | ' | ' | -2,490,145 | -2,490,145 |
Ending Balance, Amount at Jun. 30, 2014 | ' | $4,119 | $169,280 | $46,792,736 | ($36,347,054) | $10,619,081 |
Ending Balance, Shares at Jun. 30, 2014 | ' | 411,927 | 16,928,025 | ' | ' | ' |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Cash Flows From Operating Activities: | ' | ' |
Net (loss) income | ($2,490,145) | $257,487 |
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ' | ' |
Depreciation and Amortization | 879,329 | 901,407 |
Bad debt expense | 186,740 | 144,617 |
Stock compensation expense | 1,719,375 | 843,645 |
Stock issued for charity | 96,900 | ' |
Decrease (increase) in: | ' | ' |
Trade receivables | -661,357 | -1,859,987 |
Prepaids and other assets | -20,747 | -226,552 |
Increase (decrease) in: | ' | ' |
Accounts payable | 84,634 | 102,809 |
Accrued liabilities | 49,252 | -8,357 |
Deferred revenue | 63,485 | -304,133 |
Net cash used in operating activities | -92,534 | -149,064 |
Cash Flows From Investing Activities: | ' | ' |
Purchase of property and equipment | -459,230 | -445,744 |
Net cash used in investing activities | -459,230 | -445,744 |
Cash Flows From Financing Activities: | ' | ' |
Proceeds from issuance of stock | 1,493,818 | 4,162,920 |
Proceeds from exercise of options and warrants | 633,454 | ' |
Proceeds from issuance of note payable | 338,287 | 176,797 |
Proceeds from employee stock plan | 153,875 | 156,741 |
Series A redemption | ' | -21,720 |
Dividends paid | -586,999 | -503,311 |
Payments on notes payable and capital leases | -551,202 | -866,210 |
Net cash provided by financing activities | 1,481,233 | 3,105,217 |
Net (decrease) increase in cash and cash equivalents | -264,026 | 2,510,409 |
Cash and cash equivalents at beginning of period | 3,616,585 | 1,106,176 |
Cash and cash equivalents at end of period | 3,352,559 | 3,616,585 |
Supplemental Disclosure of Cash Flow Information: | ' | ' |
Cash paid for income taxes | 6,634 | ' |
Cash paid for interest | 75,343 | 142,491 |
Supplemental Disclosure of Non-Cash Investing and Financing Activities: | ' | ' |
Common stock to pay accrued liabilities | 1,107,698 | 786,343 |
Dividends accrued on preferred stock | 617,891 | 911,580 |
Dividends paid with preferred stock | ' | 501,060 |
Conversion of accounts receivable into notes receivable | ' | $1,622,863 |
DESCRIPTION_OF_BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended |
Jun. 30, 2014 | |
Notes to Financial Statements | ' |
NOTE 1 - DESCRIPTION OF BUSINESS | ' |
Summary of Business | |
The Company is incorporated in the state of Nevada. The Company has two subsidiaries , PC Group, Inc. (formerly, Park City Group, Inc., a Delaware corporation), a Utah Corporation (98.76% owned), and Park City Group, Inc., (formerly, Prescient Applied Intelligence, Inc.), a wholly owned Delaware Corporation. All intercompany transactions and balances have been eliminated in consolidation. | |
The Company designs, develops, markets and supports proprietary software products. These products are designed for businesses having multiple locations to assist in the management of business operations on a daily basis and communicate results of operations in a timely manner. In addition, the Company has built a consulting practice for business improvement that centers on the Company’s proprietary software products. The principal markets for the Company's products are multi-store retail and convenience store chains, branded food manufacturers, suppliers and distributors, and manufacturing companies, which have operations in North America, Europe, Asia and the Pacific Rim. | |
Recent Developments | |
ResposiTrak Agreement | |
Effective June 30, 2013, the Company, ReposiTrak, and Leavitt entered into the Omnibus Agreement, wherein the Company agreed to continue providing certain management and business services to ReposiTrak, including powering ReposiTrak’s subscription-based analytical service of food and drug supply chains with the Company’s technologies for a three year term. In addition to certain subscription and management fees, the Company also has a nine-year option to purchase approximately 75% of the ReposiTrak’s issued and outstanding securities, on a fully diluted basis, for prices ranging from $0.15 - $1.17 per share. During the year ended June 30, 2014, the Company received $2,330,700 in subscription and management fees pursuant to the Omnibus Agreement. | |
Listing of Common Stock on the NASDAQ Capital Market | |
On October 15, 2013, the Company notified the NYSE MKT LLC (the “NYSE MKT”) of the Company's intent to withdraw the listing and registration of its common stock from the NYSE MKT, and transfer the listing of its common stock to the NASDAQ Capital Market. The Company’s common stock ceased trading on the NYSE MKT at the close of business on October 25, 2013, and began trading on the NASDAQ Capital Market on October 28, 2013 under the stock symbol “PCYG”. | |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||||||||||||||
Principles of Consolidation | |||||||||||||||||||||||
The financial statements presented herein reflect the consolidated financial position of Park City Group, Inc. and subsidiaries, including Prescient. All inter-company transactions and balances have been eliminated in consolidation. | |||||||||||||||||||||||
Use of Estimates | |||||||||||||||||||||||
The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that materially affect the amounts reported in the condensed consolidated financial statements. Actual results could differ from these estimates. The methods, estimates and judgments the Company uses in applying its most critical accounting policies have a significant impact on the results it reports in its financial statements. The Securities and Exchange Commission has defined the most critical accounting policies as those that are most important to the portrayal of the Company’s financial condition and results, and require the Company to make its most difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. Based on this definition, the Company’s most critical accounting policies include: income taxes, goodwill and other long-lived asset valuations, revenue recognition, stock-based compensation, and capitalization of software development costs. | |||||||||||||||||||||||
Cash and Cash Equivalents | |||||||||||||||||||||||
The Company considers all short-term instruments with an original maturity of three months or less to be cash equivalents. | |||||||||||||||||||||||
Concentration of Credit Risk and Significant Customers | |||||||||||||||||||||||
The Company maintains cash in bank deposit accounts, which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. | |||||||||||||||||||||||
Financial instruments, which potentially subject the Company to concentration of credit risk, consist primarily of trade receivables. In the normal course of business, the Company provides credit terms to its customers. Accordingly, the Company performs ongoing credit evaluations of its customers and maintains allowances for possible losses which when realized have been within the range of management's expectations. The Company does not require collateral from its customers. | |||||||||||||||||||||||
The Company's accounts receivable are derived from sales of products and services primarily to customers operating multi-location retail and grocery stores. Amounts that have been invoiced are recorded in accounts receivable and in deferred revenue or revenue, depending on whether the revenue recognition criteria have been met. | |||||||||||||||||||||||
During the years ended June 30, 2014 and 2013, the Company had one customer that accounted for 20% of total revenue. | |||||||||||||||||||||||
Receivables | |||||||||||||||||||||||
Trade account and notes receivable are stated at the amount the Company expects to collect. Receivables are reviewed individually for collectability. If the financial condition of the Companys customers were to deteriorate, adversely affecting their ability to make payments, allowances may be required. Interest income on current notes receivable is recognized on an accrual basis at a stated interest rate of 8%. | |||||||||||||||||||||||
Allowance for Doubtful Accounts Receivable | |||||||||||||||||||||||
The Company offers credit terms on the sale of the Company’s products to a significant majority of the Company’s customers and requires no collateral from these customers. The Company performs ongoing credit evaluations of customers’ financial condition and maintains an allowance for doubtful accounts receivable based upon the Company’s historical experience and a specific review of accounts receivable at the end of each period. As of June 30, 2014 and 2013, the allowance for doubtful accounts was $70,000 and $190,000, respectively. | |||||||||||||||||||||||
Depreciation and Amortization | |||||||||||||||||||||||
Depreciation and amortization of property and equipment is computed using the straight line method based on the following estimated useful lives: | |||||||||||||||||||||||
Years | |||||||||||||||||||||||
Furniture and fixtures | 7-May | ||||||||||||||||||||||
Computer Equipment | 3 | ||||||||||||||||||||||
Equipment under capital leases | 3 | ||||||||||||||||||||||
Leasehold improvements | See below | ||||||||||||||||||||||
Leasehold improvements are amortized over the shorter of the remaining lease term or the estimated useful life of the improvements. | |||||||||||||||||||||||
Amortization of intangible assets are computed using the straight line method based on the following estimated useful lives: | |||||||||||||||||||||||
Years | |||||||||||||||||||||||
Customer relationships | 10 | ||||||||||||||||||||||
Acquired developed software | 5 | ||||||||||||||||||||||
Developed software | 3 | ||||||||||||||||||||||
Goodwill | See below | ||||||||||||||||||||||
Goodwill and intangible assets deemed to have indefinite lives are subject to annual impairment tests. Other intangible assets are amortized over their useful lives. | |||||||||||||||||||||||
Warranties | |||||||||||||||||||||||
The Company offers a limited warranty against software defects. Customers who are not completely satisfied with their software purchase may attempt to be reimbursed for their purchases outside the warranty period. For the years ending June 30, 2014 and 2013, the Company did not incur any expense associated with warranty claims. | |||||||||||||||||||||||
Revenue Recognition | |||||||||||||||||||||||
We recognize revenue when all of the following conditions are satisfied: (i) there is persuasive evidence of an arrangement, (ii) the service has been provided to the customer, (iii) the collection of our fees is probable and (iv) the amount of fees to be paid by the customer is fixed or determinable. | |||||||||||||||||||||||
We recognize subscription and hosting revenue ratably over the length of the agreement beginning on the commencement dates of each agreement or when revenue recognition conditions are satisfied based on their relative fair values. For a fee, subscriptions provide the customer with access to the software and data over the Internet, or on demand, and provide technical support services, premium analytical services and software upgrades when and if available. Under subscriptions, customers do not have the right to take possession of the software and such arrangements are considered service contracts. Accordingly, we recognize professional services as incurred based on their relative fair values. In situations where we have contractually committed to an individual customer specific technology, we defer all of the revenue for that customer until the technology is delivered and accepted. Once delivery occurs, we then recognize the revenue ratably over the remaining contract term. When subscription service or hosting service is paid in advance, deferred revenue is recognized and revenue is recorded ratably over the term as services are consumed. | |||||||||||||||||||||||
Set up fees paid by customers in connection with subscription services are deferred and recognized ratably over the life of the applicable agreement. | |||||||||||||||||||||||
Premium support and maintenance service revenue is derived from services beyond the basic services provided in standard arrangements. We recognize premium service and maintenance revenue ratably over the contract terms beginning on the commencement dates of each contract or when revenue recognition conditions are satisfied. Instances where these services are paid in advance, deferred revenue is recognized and revenue is recorded ratably over the term as services are consumed. | |||||||||||||||||||||||
Professional services revenue consists primarily of fees associated with application and data integration, data cleansing, business process re-engineering, change management and education and training services. Fees charged for professional services are recognized when delivered. We believe the fees for professional services qualify for separate accounting because: (i) the services have value to the customer on a stand-alone basis, (ii) objective and reliable evidence of fair value exists for these services and (iii) performance of the services is considered probable and does not involve unique customer acceptance criteria. | |||||||||||||||||||||||
The Company's revenue, to a lesser extent, is earned under license arrangements. Licenses generally include multiple elements that are delivered up front or over time. Vendor specific objective evidence of fair value of the hosting and support elements is based on the price charged at renewal when sold separately, and the license element is recognized into revenue upon delivery. The hosting and support elements are recognized ratably over the contractual term. | |||||||||||||||||||||||
Software Development Costs | |||||||||||||||||||||||
The Company accounts for research costs of computer software to be sold, leased or otherwise marketed as expense until technological feasibility has been established for the product. Once technological feasibility is established, all software costs are capitalized until the product is available for general release to customers. Judgment is required in determining when technological feasibility of a product is established. We have determined that technological feasibility for our software products is reached shortly after a working prototype is complete and meets or exceeds design specifications including functions, features, and technical performance requirements. Costs incurred after technological feasibility is established have been and will continue to be capitalized until such time as when the product or enhancement is available for general release to customers. | |||||||||||||||||||||||
During 2014 and 2013 capitalized development costs of $73,082 and $146,166, respectively, were amortized into expense. The Company amortizes its developed and purchased software on a straight-line basis over three and five years, respectively. | |||||||||||||||||||||||
Research and Development Costs | |||||||||||||||||||||||
Research and development costs include personnel costs, engineering, consulting, and contract labor and are expensed as incurred for software that has not achieved technological feasibility. | |||||||||||||||||||||||
Income Taxes | |||||||||||||||||||||||
The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of temporary differences between tax bases and financial reporting bases of other assets and liabilities. | |||||||||||||||||||||||
Earnings Per Share | |||||||||||||||||||||||
Basic net income or loss per common share (“Basic EPS”) excludes dilution and is computed by dividing net income or loss by the weighted average number of common shares outstanding during the period. Diluted net income or loss per common share (“Diluted EPS”) reflects the potential dilution that could occur if stock options or other contracts to issue shares of common stock were exercised or converted into common stock. The computation of Diluted EPS does not assume exercise or conversion of securities that would have an anti-dilutive effect on net income (loss) per common share. | |||||||||||||||||||||||
For the year ended June 30, 2014 and 2013 warrants to purchase 317,373 and 436,110 shares of common stock, respectively, were not included in the computation of diluted EPS due to the anti-dilutive effect. Warrants to purchase shares of common stock were outstanding at prices ranging from $3.50 to $6.45 per share at June 30, 2014. | |||||||||||||||||||||||
For the year ended June 30, 2014, 1,029,818 shares of common stock issuable upon conversion of the Company’s Series B Convertible Preferred Stock (“Series B Preferred”), and, for the year ended June 30, 2013, 1,029,818 shares of common stock issuable upon conversion of the Company’s Series B Preferred were not included in the diluted EPS calculation as the effect would have been anti-dilutive. | |||||||||||||||||||||||
Year ended | Year ended | ||||||||||||||||||||||
30-Jun-14 | 30-Jun-13 | ||||||||||||||||||||||
Dilutive effect of options and warrants | - | - | |||||||||||||||||||||
Weighted average shares outstanding assuming dilution | 16,710,000 | 13,246,000 | |||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||
The Company recognizes the cost of employee services received in exchange for awards of equity instruments based on the grant-date fair value of those awards. The Company records compensation expense on a straight-line basis. The fair value of options granted are estimated at the date of grant using a Black-Scholes option pricing model with assumptions for the risk-free interest rate, expected life, volatility, dividend yield and forfeiture rate. | |||||||||||||||||||||||
The following table summarizes information about fixed stock warrants outstanding at June 30, 2014: | |||||||||||||||||||||||
Warrants Outstanding | Warrants Exercisable | ||||||||||||||||||||||
at June 30, 2014 | at June 30, 2014 | ||||||||||||||||||||||
Range of exercise prices | Number Outstanding | Weighted average remaining contractual life (years) | Weighted average exercise price | Number exercisable | Weighted average exercise price | ||||||||||||||||||
$ | 3.50-3.60 | 240,629 | 3.71 | $ | 3.56 | 240,629 | $ | 3.56 | |||||||||||||||
$ | 6.45 | 76,744 | 4.16 | $ | 6.45 | 76,744 | $ | 6.45 | |||||||||||||||
317,373 | 3.82 | $ | 4.26 | 317,373 | $ | 4.26 | |||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||||
The Company's financial instruments consist of cash, cash equivalents, receivables, payables, accruals and notes payable. The carrying amount of cash, cash equivalents, receivables, payables and accruals approximates fair value due to the short-term nature of these items. The notes payable also approximate fair value based on evaluations of market interest rates. | |||||||||||||||||||||||
Reclassifications | |||||||||||||||||||||||
Certain prior-year amounts have been reclassified to conform with the current year's presentation. |
LIQUIDITY_AND_WORKING_CAPITAL
LIQUIDITY AND WORKING CAPITAL | 12 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
NOTE 3 - LIQUIDITY AND WORKING CAPITAL | ' |
Historically, the Company has financed its operations through operating revenue, loans from directors, officers, stockholders, loans from the Chief Executive Officer and majority shareholder and private placements of equity securities. | |
At June 30, 2014, the Company had positive working capital of $654,042, as compared with positive working capital of $1,124,476 at June 30, 2013. This $470,434 decrease in working capital is principally due to the use of cash during the year ended June 30, 2014 caused principally by the increase in net loss during the period. While no assurances can be given, management currently believes that the Company will increase its working capital position in future periods as a result of the projected increase in subscription revenue, among other factors, as well as reduce its indebtedness in subsequent periods utilizing existing cash resources and projected cash flow from operations. In addition, management may also refinance or restructure certain of the Company’s indebtedness to extend the maturities of such indebtedness to address its short- and long-term working capital requirements. Management believes that these initiatives will enable us to address our debt service requirements during the next twelve months, as well as fund our currently anticipated operations and capital spending requirements. The financial statements do not reflect any adjustments should cash flow from operations be insufficient to meet our spending and debt service requirements, and we are otherwise unable to refinance or restructure our indebtedness. | |
RECEIVABLES
RECEIVABLES | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
NOTE 4 - RECEIVABLES | ' | ||||||||
Accounts receivable consist of the following: | |||||||||
2014 | 2013 | ||||||||
Accounts receivable | $ | 2,927,983 | $ | 2,573,366 | |||||
Allowance for doubtful accounts | (70,000 | ) | (190,000 | ) | |||||
$ | 2,857,983 | $ | 2,383,366 | ||||||
Accounts receivable consist of trade accounts receivable and unbilled amounts recognized as revenue during the year for which invoices were sent subsequent to year-end. Amounts that have been invoiced are recorded in accounts receivable and in deferred revenue or revenue, depending on whether the revenue recognition criteria have been met. |
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
NOTE 5 - PROPERTY AND EQUIPMENT | ' | ||||||||
Property and equipment are stated at cost and consist of the following at June 30: | |||||||||
2014 | 2013 | ||||||||
Computer equipment | $ | 2,899,867 | $ | 2,444,129 | |||||
Furniture and fixtures | 260,574 | 321,281 | |||||||
Leasehold improvements | 231,782 | 231,782 | |||||||
3,392,223 | 2,997,192 | ||||||||
Less accumulated depreciation and amortization | (2,651,470 | ) | (2,325,233 | ) | |||||
$ | 740,753 | $ | 671,959 | ||||||
Depreciation expense for the years ended June 30, 2014 and 2013 was $383,930 and $332,925, respectively. |
CAPITALIZED_SOFTWARE_COSTS
CAPITALIZED SOFTWARE COSTS | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Notes to Financial Statements | ' | ||||||||
NOTE 6 - CAPITALIZED SOFTWARE COSTS | ' | ||||||||
Capitalized software costs consist of the following at June 30: | |||||||||
2014 | 2013 | ||||||||
Capitalized software costs | $ | 2,443,128 | $ | 2,443,128 | |||||
Less accumulated amortization | (2,443,128 | ) | (2,370,046 | ) | |||||
$ | - | $ | 73,082 | ||||||
Amortization expense for the years ended June 30, 2014 and 2013 was $73,082 and $146,166, respectively. | |||||||||
CUSTOMER_RELATIONSHIPS
CUSTOMER RELATIONSHIPS | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Notes to Financial Statements | ' | ||||||||
NOTE 7 - CUSTOMER RELATIONSHIPS | ' | ||||||||
Customer relationships consist of the following at June 30: | |||||||||
2014 | 2013 | ||||||||
Customer relationships | $ | 4,223,161 | $ | 4,223,161 | |||||
Less accumulated amortization | (2,305,142 | ) | (1,882,826 | ) | |||||
$ | 1,918,019 | $ | 2,340,335 | ||||||
Amortization expense for the years ended June 30, 2014 and 2013 was $422,316 and $422,316, respectively. | |||||||||
Estimated aggregate amortization expense is as follows: | |||||||||
Year ending June 30: | |||||||||
2015 | $ | 422,316 | |||||||
2016 | $ | 422,316 | |||||||
2017 | $ | 422,316 | |||||||
2018 | $ | 422,316 | |||||||
2019 | $ | 228,755 | |||||||
Thereafter | $ | - | |||||||
ACCRUED_LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
NOTE 8 - ACCRUED LIABILITIES | ' | ||||||||
Accrued liabilities consist of the following at June 30, 2014 and 2013: | |||||||||
2014 | 2013 | ||||||||
Accrued stock-based compensation | $ | 1,122,188 | $ | 497,012 | |||||
Accrued compensation | 352,764 | 295,377 | |||||||
Accrued other liabilities | 171,930 | 176,892 | |||||||
Accrued dividends | 154,473 | 123,578 | |||||||
Accrued interest | - | 4,123 | |||||||
$ | 1,801,355 | $ | 1,096,982 | ||||||
NOTES_PAYABLE
NOTES PAYABLE | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
NOTE 9 - NOTES PAYABLE | ' | ||||||||
The Company had the following notes payable obligations at June 30, 2014 and 2013: | |||||||||
Notes Payable: | 2014 | 2013 | |||||||
Note payable to a bank, due in monthly installments of $40,104 with an annual interest rate of 4.25%. This note was retired September 1, 2013. | $ | - | $ | 119,567 | |||||
Note payable to a bank, due in monthly installments of $10,355 bearing interest at 3.95% due July 15, 2014. This note has been retired subsequent to June 30, 2014. | 10,490 | 131,643 | |||||||
Note payable to a bank, due in monthly installments of $9,359 bearing interest at 4.9% due September 15, 2014 | 29,508 | 137,380 | |||||||
Note payable to a bank, due in monthly installments of $10,286 bearing interest at 4.39% due September 20, 2014, this note is a conversion of a multi-advance note payable initially put in place on September 21, 2010, secured by related capital equipment purchases. | 31,570 | 150,655 | |||||||
Note payable to a bank, due in monthly installments of $7,860 bearing interest at 3.73% due February 9, 2017, this note is a conversion of a multi-advance note payable initially put in place on February 19, 2012, secured by related capital equipment purchases. | 239,293 | 322,818 | |||||||
Note payable to a bank, due in monthly installments of $7,860 bearing interest at 4.17% due July 15, 2014, this note is a conversion of a multi-advance note payable initially put in place on August 26, 2013, secured by related capital equipment purchases. | 338,287 | - | |||||||
649,148 | 862,063 | ||||||||
Less current portion notes payable | (226,900 | ) | (551,421 | ) | |||||
$ | 422,248 | $ | 310,642 | ||||||
Maturities of notes payable and capital leases at June 30, 2014 are as follows: | |||||||||
Year ending June 30: | |||||||||
2015 | $ | 226,900 | |||||||
2016 | $ | 174,095 | |||||||
2017 | $ | 150,047 | |||||||
2018 | $ | 91,385 | |||||||
2019 | $ | 6,721 | |||||||
LINES_OF_CREDIT
LINES OF CREDIT | 12 Months Ended |
Jun. 30, 2014 | |
Debt Disclosure [Abstract] | ' |
NOTE 10 - LINES OF CREDIT | ' |
The Company’s line of credit with a bank has an annual interest rate of 3.5% + LIBOR. The line of credit is scheduled to mature on December 31, 2014. The balance on the line of credit was $1,200,000 at June 30, 2014 and June 30, 2013, respectively. |
DEFERRED_REVENUE
DEFERRED REVENUE | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Deferred Revenue Disclosure [Abstract] | ' | ||||||||
NOTE 11 - DEFERRED REVENUE | ' | ||||||||
Deferred revenue consisted of the following at June 30: | |||||||||
2014 | 2013 | ||||||||
Subscription | $ | 855,462 | 725,852 | ||||||
Maintenance and support | 886,518 | 946,759 | |||||||
Consulting and other | 98,831 | 104,715 | |||||||
$ | 1,840,811 | $ | 1,777,326 | ||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
NOTE 12 - INCOME TAXES | ' | ||||||||
Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards and deferred tax liabilities are recognized for taxable differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. | |||||||||
Net deferred tax liabilities consist of the following components at June 30: | |||||||||
2014 | 2013 | ||||||||
Deferred tax assets: | |||||||||
NOL Carryover | $ | 45,484,720 | $ | 44,760,272 | |||||
Depreciation | - | - | |||||||
Amortization | - | - | |||||||
Allowance for Bad Debts | 27,300 | 74,100 | |||||||
Accrued Expenses | 455,041 | 199,977 | |||||||
Deferred Revenue | 283,900 | 396,086 | |||||||
Deferred tax liabilities: | |||||||||
Depreciation | -120,626 | (97,517 | ) | ||||||
Amortization | -392,137 | (348,847 | ) | ||||||
Valuation allowance | -45,738,198 | (44,984,071 | ) | ||||||
Net deferred tax asset | $ | - | $ | - | |||||
The income tax provision differs from the amounts of income tax determined by applying the US federal income tax rate to pretax income from continuing operations for the years ended June 30, 2014 and 2013 due to the following: | |||||||||
2014 | 2013 | ||||||||
Book Income | $ | (971,157 | ) | $ | 100,420 | ||||
Stock for Services | (21,650 | ) | 149,651 | ||||||
Life Insurance | 30,390 | 27,098 | |||||||
Meals & Entertainment | 12,793 | 10,277 | |||||||
Change in deferred revenue | (112,186 | ) | 36,064 | ||||||
Change in accrual and Allowance | 208,264 | (37,153 | ) | ||||||
Change in depreciation | (52,340 | ) | (99,084 | ) | |||||
NOL utilization | - | (187,273 | ) | ||||||
Valuation allowance | 905,886 | - | |||||||
$ | - | $ | - | ||||||
At June 30, 2014, the Company had net operating loss carry-forwards of approximately $116,627,500 that may be offset against past and future taxable income from the year 2011 through 2032. No tax benefit has been reported in the June 30, 2014 condensed consolidated financial statements since the potential tax benefit is offset by a valuation allowance of the same amount. | |||||||||
Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carryforwards for Federal income tax reporting purposes are subject to annual limitations. In January 2009 the Company acquired Prescient Applied Intelligence, Inc., which had significant net operating loss carry-forwards. Due to change in ownership, Prescient’s net operating loss carryforwards may be limited as to use in future years. The limitation will be determined on a year-to-year basis. | |||||||||
The Company determines whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, the Company measures the tax position to determine the amount to recognize in the financial statements. The Company performed a review of its material tax positions in accordance with these recognition and measurement standards. | |||||||||
The Company has concluded that there are no significant uncertain tax positions requiring disclosure, and there are not material amounts of unrecognized tax benefits. | |||||||||
The Company includes interest and penalties arising from the underpayment of income taxes in the condensed consolidated statements of operations in the provision for income taxes. As of June 30, 2014, the Company had no accrued interest or penalties related to uncertain tax positions. | |||||||||
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 and local income tax examinations by tax authorities for years before June 30, 2007. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
NOTE 13 - COMMITMENTS AND CONTINGENCIES | ' | ||||
Operating Leases | |||||
In September, 2012, the Company entered into an office lease at 299 So. Main Street, Suite 2370, Salt Lake City, Utah, 84111, providing for the lease of approximately 5,300 square feet for a period of seven years, commencing on November 1, 2012. The monthly rent is $12,367. | |||||
Minimum future rental payments under the non-cancelable operating leases are as follows: | |||||
Year ending June 30: | |||||
2015 | $ | 155,542 | |||
2016 | $ | 160,215 | |||
2017 | $ | 165,024 | |||
2018 | $ | 169,993 | |||
2019 | $ | 73,847 | |||
From time to time the Company may enter into or exit from diminutive operating lease agreements for equipment such as copiers, temporary back up servers, etc. These leases are not of a material amount and thus will not in the aggregate have a material adverse effect on our business, financial condition, results of operation or liquidity. | |||||
EMPLOYEEE_BENEFIT_PLAN
EMPLOYEEE BENEFIT PLAN | 12 Months Ended |
Jun. 30, 2014 | |
Notes to Financial Statements | ' |
NOTE 14 - EMPLOYEEE BENEFIT PLAN | ' |
The Company offers an employee benefit plan under Benefit Plan Section 401(k) of the Internal Revenue Code. Employees who have attained the age of 18 are eligible to participate. The Company, at its discretion, may match employee’s contributions at a percentage determined annually by the board of directors. The Company does not currently match contributions. There were no expenses for the years ended June 30, 2014 and 2013. |
STOCK_COMPENSATION_PLAN
STOCK COMPENSATION PLAN | 12 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
Notes to Financial Statements | ' | ||||||||||||||||||
NOTE 15 - STOCK COMPENSATION PLAN | ' | ||||||||||||||||||
Officers and Directors Stock Compensation | |||||||||||||||||||
Effective November 2008, the Board of Directors approved the following compensation for directors who are not employed by the Company: | |||||||||||||||||||
● | Annual cash compensation of $10,000 payable at the rate of $2,500 per quarter. The Company has the right to pay this amount in the form of shares of the Company’s common stock. | ||||||||||||||||||
● | Upon appointment, outside independent directors receive a grant of $150,000 payable in shares of the Company’s restricted Common Stock calculated based on the market value of the shares of Common Stock on the date of grant. The shares vest ratably over a five-year period. | ||||||||||||||||||
● | Reimbursement of all travel expenses related to performance of Directors’ duties on behalf of the Company. | ||||||||||||||||||
Officers, Key Employees, Consultants and Directors Stock Compensation. | |||||||||||||||||||
In January 2013, the Board of Directors approved the Second Amended and Restated the 2011 Stock Plan (the “Amended 2011 Plan”), which Amended 2011 Plan was approved by shareholders on March 29, 2013. Under the terms of the Amended 2011 Plan, officers, key employees, consultants and directors of the Company are eligible to participate. The maximum aggregate number of shares of common stock that may be granted under the 2011 Plan was increased from 250,000 shares to 500,000 shares. A Committee of independent members of the Company’s Board of Directors administers the 2011 Plan. The exercise price for each share of common stock purchasable under any incentive stock option granted under the 2011 Plan shall be not less than 100% of the fair market value of the common stock, as determined by the stock exchange on which the common stock trades on the date of grant. If the incentive stock option is granted to a shareholder who possesses more than 10% of the Company's voting power, then the exercise price shall be not less than 110% of the fair market value on the date of grant. Each option shall be exercisable in whole or in installments as determined by the Committee at the time of the grant of such options. All incentive stock options expire after 10 years. If the incentive stock option is held by a shareholder who possesses more than 10% of the Company's voting power, then the incentive stock option expires after five years. If the option holder is terminated, then the incentive stock options granted to such holder expire no later than three months after the date of termination. For option holders granted incentive stock options exercisable for the first time during any fiscal year and in excess of $100,000 (determined by the fair market value of the shares of common stock as of the grant date), the excess shares of common stock shall not be deemed to be purchased pursuant to incentive stock options. | |||||||||||||||||||
A schedule of the options and warrants activity for the years ended June 30, 2014 and 2013 is as follows: | |||||||||||||||||||
Number of Options | Number of Warrants | Price per share | |||||||||||||||||
Outstanding at June 30, 2012 | 12,880 | 50,000 | $ | 1.50-1.80 | |||||||||||||||
Granted | — | 424,763 | $ | 3.50-3.60 | |||||||||||||||
Exercised | — | (30,644 | ) | $ | 1.8 | ||||||||||||||
Cancelled | (580 | ) | (19,356 | ) | $ | 1.80-2.50 | |||||||||||||
Expired | — | — | $ | — | |||||||||||||||
Outstanding at June 30, 2013 | 12,300 | 424,763 | $ | 1.50-3.60 | |||||||||||||||
Granted | — | 76,744 | $ | 6.45 | |||||||||||||||
Exercised | (12,300 | ) | (184,134 | ) | $ | 1.50-3.60 | |||||||||||||
Cancelled | — | — | $ | — | |||||||||||||||
Expired | — | — | $ | — | |||||||||||||||
Outstanding at June 30, 2014 | — | 317,373 | $ | 3.50-6.45 | |||||||||||||||
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Jun. 30, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
NOTE 16 - RECENT ACCOUNTING PRONOUNCEMENTS | ' |
In June 2014, the FASB issued ASU 2014-12, Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. This Update clarifies the accounting for equity awards in which the performance target (i.e an initial public offering) could be achieved after the requisite service period. The guidance require a performance target that affects vesting and that could be achieved after the service period be treated as a performance condition and not be reflected in the fair value of the award. Therefore, the compensation costs will begin to be recognized when it becomes probable that the performance target will be achieved. If the requisite service period is complete, the entire amount of compensation costs should be recognized at that time. This Update is effective for reporting periods beginning after December 15, 2015. The Company currently does not have any stock-based awards meeting the criteria noted so the Company doesn’t expect this Update to have a significant impact on its financials. However, it will evaluate new grants and ensure the guidance is followed if these types of grants are made. | |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customer (Topic 606). This Update provides new revenue recognition guidance that will be applicable for all industries and develops a common revenue standard for GAAP and IFRS. The main purpose of the new guidance is to remove inconsistencies, provide a more robust framework, improve comparability among industries, improve disclosure requirements and reduce the number of requirements to which an entity must refer. The guidance outlines the following five steps that should be followed in recognizing revenue: | |
1. Identify contract with customer; | |
2. Identify the performance obligations in the contract; | |
3. Determine the transaction price; | |
4. Allocate the transaction price to the performance obligations in the contract; and | |
5. Recognize revenue when the performance obligation is satisfied. | |
The update also provides disclosure requirements requiring entities to provide sufficient information to enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. This Update is effective for public entities for reporting periods beginning after December 15, 2016 and for all other entities, it is effective for periods beginning after December 15, 2017. Due to the extensive nature of this Update, the Company is evaluating the impact this new guidance will have on its financials. | |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jun. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
NOTE 17 - RELATED PARTY TRANSACTIONS | ' |
During the year ended June 30, 2014, the Company was a party to a Service Agreement with Fields Management, Inc. (“FMI”), pursuant to which FMI provided certain executive management services to the Company, including designating Mr. Randall K. Fields to perform the functions of President and Chief Executive Officer for the Company. Randall K. Fields, FMI’s designated Executive, who also serves as the Company’s Chairman of the Board of Directors, controls FMI. The Service Agreement is attached as Exhibit 10.9. | |
The Company did not have any other related party transactions as of June 30, 2014. | |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2014 | |
Subsequent Events [Abstract] | ' |
NOTE 18 - SUBSEQUENT EVENTS | ' |
In accordance with the Subsequent Events Topic of the FASB ASC 855, we have evaluated subsequent events, and noted no subsequent events that are reasonably likely to impact the financial statements. |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||
Principles of Consolidation | ' | ||||||||||||||||||||||
The financial statements presented herein reflect the consolidated financial position of Park City Group, Inc. and subsidiaries, including Prescient. All inter-company transactions and balances have been eliminated in consolidation. | |||||||||||||||||||||||
Use of Estimates | ' | ||||||||||||||||||||||
The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that materially affect the amounts reported in the condensed consolidated financial statements. Actual results could differ from these estimates. The methods, estimates and judgments the Company uses in applying its most critical accounting policies have a significant impact on the results it reports in its financial statements. The Securities and Exchange Commission has defined the most critical accounting policies as those that are most important to the portrayal of the Company’s financial condition and results, and require the Company to make its most difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain. Based on this definition, the Company’s most critical accounting policies include: income taxes, goodwill and other long-lived asset valuations, revenue recognition, stock-based compensation, and capitalization of software development costs. | |||||||||||||||||||||||
Cash and Cash Equivalents | ' | ||||||||||||||||||||||
The Company considers all short-term instruments with an original maturity of three months or less to be cash equivalents. | |||||||||||||||||||||||
Concentration of Credit Risk and Significant Customers | ' | ||||||||||||||||||||||
The Company maintains cash in bank deposit accounts, which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. | |||||||||||||||||||||||
Financial instruments, which potentially subject the Company to concentration of credit risk, consist primarily of trade receivables. In the normal course of business, the Company provides credit terms to its customers. Accordingly, the Company performs ongoing credit evaluations of its customers and maintains allowances for possible losses which when realized have been within the range of management's expectations. The Company does not require collateral from its customers. | |||||||||||||||||||||||
The Company's accounts receivable are derived from sales of products and services primarily to customers operating multi-location retail and grocery stores. Amounts that have been invoiced are recorded in accounts receivable and in deferred revenue or revenue, depending on whether the revenue recognition criteria have been met. | |||||||||||||||||||||||
During the years ended June 30, 2014 and 2013, the Company had one customer that accounted for 20% of total revenue. | |||||||||||||||||||||||
Receivables | ' | ||||||||||||||||||||||
Receivables | |||||||||||||||||||||||
Trade account and notes receivable are stated at the amount the Company expects to collect. Receivables are reviewed individually for collectability. If the financial condition of the Companys customers were to deteriorate, adversely affecting their ability to make payments, allowances may be required. Interest income on current notes receivable is recognized on an accrual basis at a stated interest rate of 8%. | |||||||||||||||||||||||
Allowance for Doubtful Accounts Receivable | ' | ||||||||||||||||||||||
The Company offers credit terms on the sale of the Company’s products to a significant majority of the Company’s customers and requires no collateral from these customers. The Company performs ongoing credit evaluations of customers’ financial condition and maintains an allowance for doubtful accounts receivable based upon the Company’s historical experience and a specific review of accounts receivable at the end of each period. As of June 30, 2014 and 2013, the allowance for doubtful accounts was $70,000 and $190,000, respectively. | |||||||||||||||||||||||
Depreciation and Amortization | ' | ||||||||||||||||||||||
Depreciation and amortization of property and equipment is computed using the straight line method based on the following estimated useful lives: | |||||||||||||||||||||||
Years | |||||||||||||||||||||||
Furniture and fixtures | 7-May | ||||||||||||||||||||||
Computer Equipment | 3 | ||||||||||||||||||||||
Equipment under capital leases | 3 | ||||||||||||||||||||||
Leasehold improvements | See below | ||||||||||||||||||||||
Leasehold improvements are amortized over the shorter of the remaining lease term or the estimated useful life of the improvements. | |||||||||||||||||||||||
Amortization of intangible assets are computed using the straight line method based on the following estimated useful lives: | |||||||||||||||||||||||
Years | |||||||||||||||||||||||
Customer relationships | 10 | ||||||||||||||||||||||
Acquired developed software | 5 | ||||||||||||||||||||||
Developed software | 3 | ||||||||||||||||||||||
Goodwill | See below | ||||||||||||||||||||||
Goodwill and intangible assets deemed to have indefinite lives are subject to annual impairment tests. Other intangible assets are amortized over their useful lives. | |||||||||||||||||||||||
Warranties | ' | ||||||||||||||||||||||
The Company offers a limited warranty against software defects. Customers who are not completely satisfied with their software purchase may attempt to be reimbursed for their purchases outside the warranty period. For the years ending June 30, 2014 and 2013, the Company did not incur any expense associated with warranty claims. | |||||||||||||||||||||||
Revenue Recognition | ' | ||||||||||||||||||||||
We recognize revenue when all of the following conditions are satisfied: (i) there is persuasive evidence of an arrangement, (ii) the service has been provided to the customer, (iii) the collection of our fees is probable and (iv) the amount of fees to be paid by the customer is fixed or determinable. | |||||||||||||||||||||||
We recognize subscription and hosting revenue ratably over the length of the agreement beginning on the commencement dates of each agreement or when revenue recognition conditions are satisfied based on their relative fair values. For a fee, subscriptions provide the customer with access to the software and data over the Internet, or on demand, and provide technical support services, premium analytical services and software upgrades when and if available. Under subscriptions, customers do not have the right to take possession of the software and such arrangements are considered service contracts. Accordingly, we recognize professional services as incurred based on their relative fair values. In situations where we have contractually committed to an individual customer specific technology, we defer all of the revenue for that customer until the technology is delivered and accepted. Once delivery occurs, we then recognize the revenue ratably over the remaining contract term. When subscription service or hosting service is paid in advance, deferred revenue is recognized and revenue is recorded ratably over the term as services are consumed. | |||||||||||||||||||||||
Set up fees paid by customers in connection with subscription services are deferred and recognized ratably over the life of the applicable agreement. | |||||||||||||||||||||||
Premium support and maintenance service revenue is derived from services beyond the basic services provided in standard arrangements. We recognize premium service and maintenance revenue ratably over the contract terms beginning on the commencement dates of each contract or when revenue recognition conditions are satisfied. Instances where these services are paid in advance, deferred revenue is recognized and revenue is recorded ratably over the term as services are consumed. | |||||||||||||||||||||||
Professional services revenue consists primarily of fees associated with application and data integration, data cleansing, business process re-engineering, change management and education and training services. Fees charged for professional services are recognized when delivered. We believe the fees for professional services qualify for separate accounting because: (i) the services have value to the customer on a stand-alone basis, (ii) objective and reliable evidence of fair value exists for these services and (iii) performance of the services is considered probable and does not involve unique customer acceptance criteria. | |||||||||||||||||||||||
The Company's revenue, to a lesser extent, is earned under license arrangements. Licenses generally include multiple elements that are delivered up front or over time. Vendor specific objective evidence of fair value of the hosting and support elements is based on the price charged at renewal when sold separately, and the license element is recognized into revenue upon delivery. The hosting and support elements are recognized ratably over the contractual term. | |||||||||||||||||||||||
Software Development Costs | ' | ||||||||||||||||||||||
The Company accounts for research costs of computer software to be sold, leased or otherwise marketed as expense until technological feasibility has been established for the product. Once technological feasibility is established, all software costs are capitalized until the product is available for general release to customers. Judgment is required in determining when technological feasibility of a product is established. We have determined that technological feasibility for our software products is reached shortly after a working prototype is complete and meets or exceeds design specifications including functions, features, and technical performance requirements. Costs incurred after technological feasibility is established have been and will continue to be capitalized until such time as when the product or enhancement is available for general release to customers. | |||||||||||||||||||||||
During 2014 and 2013 capitalized development costs of $73,082 and $146,166, respectively, were amortized into expense. The Company amortizes its developed and purchased software on a straight-line basis over three and five years, respectively. | |||||||||||||||||||||||
Research and Development Costs | ' | ||||||||||||||||||||||
Research and development costs include personnel costs, engineering, consulting, and contract labor and are expensed as incurred for software that has not achieved technological feasibility. | |||||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||||
The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of temporary differences between tax bases and financial reporting bases of other assets and liabilities. | |||||||||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||||||||
Basic net income or loss per common share (“Basic EPS”) excludes dilution and is computed by dividing net income or loss by the weighted average number of common shares outstanding during the period. Diluted net income or loss per common share (“Diluted EPS”) reflects the potential dilution that could occur if stock options or other contracts to issue shares of common stock were exercised or converted into common stock. The computation of Diluted EPS does not assume exercise or conversion of securities that would have an anti-dilutive effect on net income (loss) per common share. | |||||||||||||||||||||||
For the year ended June 30, 2014 and 2013 warrants to purchase 317,373 and 436,110 shares of common stock, respectively, were not included in the computation of diluted EPS due to the anti-dilutive effect. Warrants to purchase shares of common stock were outstanding at prices ranging from $3.50 to $6.45 per share at June 30, 2014. | |||||||||||||||||||||||
For the year ended June 30, 2014, 1,029,818 shares of common stock issuable upon conversion of the Company’s Series B Convertible Preferred Stock (“Series B Preferred”), and, for the year ended June 30, 2013, 1,029,818 shares of common stock issuable upon conversion of the Company’s Series B Preferred were not included in the diluted EPS calculation as the effect would have been anti-dilutive. | |||||||||||||||||||||||
Year ended | Year ended | ||||||||||||||||||||||
30-Jun-14 | 30-Jun-13 | ||||||||||||||||||||||
Dilutive effect of options and warrants | - | - | |||||||||||||||||||||
Weighted average shares outstanding assuming dilution | 16,710,000 | 13,246,000 | |||||||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||||||||
The Company recognizes the cost of employee services received in exchange for awards of equity instruments based on the grant-date fair value of those awards. The Company records compensation expense on a straight-line basis. The fair value of options granted are estimated at the date of grant using a Black-Scholes option pricing model with assumptions for the risk-free interest rate, expected life, volatility, dividend yield and forfeiture rate. | |||||||||||||||||||||||
The following table summarizes information about fixed stock warrants outstanding at June 30, 2014: | |||||||||||||||||||||||
Warrants Outstanding | Warrants Exercisable | ||||||||||||||||||||||
at June 30, 2014 | at June 30, 2014 | ||||||||||||||||||||||
Range of exercise prices | Number Outstanding | Weighted average remaining contractual life (years) | Weighted average exercise price | Number exercisable | Weighted average exercise price | ||||||||||||||||||
$ | 3.50-3.60 | 240,629 | 3.71 | $ | 3.56 | 240,629 | $ | 3.56 | |||||||||||||||
$ | 6.45 | 76,744 | 4.16 | $ | 6.45 | 76,744 | $ | 6.45 | |||||||||||||||
317,373 | 3.82 | $ | 4.26 | 317,373 | $ | 4.26 | |||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||||||||
The Company's financial instruments consist of cash, cash equivalents, receivables, payables, accruals and notes payable. The carrying amount of cash, cash equivalents, receivables, payables and accruals approximates fair value due to the short-term nature of these items. The notes payable also approximate fair value based on evaluations of market interest rates. | |||||||||||||||||||||||
Reclassifications | ' | ||||||||||||||||||||||
Certain prior-year amounts have been reclassified to conform with the current year's presentation. |
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||
Depreciation and amortization of property and equipment | ' | ||||||||||||||||||||||
Years | |||||||||||||||||||||||
Furniture and fixtures | 7-May | ||||||||||||||||||||||
Computer Equipment | 3 | ||||||||||||||||||||||
Equipment under capital leases | 3 | ||||||||||||||||||||||
Leasehold improvements | See below | ||||||||||||||||||||||
Amortization of intangible assets | ' | ||||||||||||||||||||||
Years | |||||||||||||||||||||||
Customer relationships | 10 | ||||||||||||||||||||||
Acquired developed software | 5 | ||||||||||||||||||||||
Developed software | 3 | ||||||||||||||||||||||
Goodwill | See below | ||||||||||||||||||||||
Diluted EPS | ' | ||||||||||||||||||||||
Year ended | Year ended | ||||||||||||||||||||||
30-Jun-14 | 30-Jun-13 | ||||||||||||||||||||||
Dilutive effect of options and warrants | - | - | |||||||||||||||||||||
Weighted average shares outstanding assuming dilution | 16,710,000 | 13,246,000 | |||||||||||||||||||||
Fixed stock options and warrants outstanding | ' | ||||||||||||||||||||||
Warrants Outstanding | Warrants Exercisable | ||||||||||||||||||||||
at June 30, 2014 | at June 30, 2014 | ||||||||||||||||||||||
Range of exercise prices | Number Outstanding | Weighted average remaining contractual life (years) | Weighted average exercise price | Number exercisable | Weighted average exercise price | ||||||||||||||||||
$ | 3.50-3.60 | 240,629 | 3.71 | $ | 3.56 | 240,629 | $ | 3.56 | |||||||||||||||
$ | 6.45 | 76,744 | 4.16 | $ | 6.45 | 76,744 | $ | 6.45 | |||||||||||||||
317,373 | 3.82 | $ | 4.26 | 317,373 | $ | 4.26 |
RECEIVABLES_Tables
RECEIVABLES (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Accounts receivable | ' | ||||||||
2014 | 2013 | ||||||||
Accounts receivable | $ | 2,927,983 | $ | 2,573,366 | |||||
Allowance for doubtful accounts | (70,000 | ) | (190,000 | ) | |||||
$ | 2,857,983 | $ | 2,383,366 |
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property and equipment | ' | ||||||||
2014 | 2013 | ||||||||
Computer equipment | $ | 2,899,867 | $ | 2,444,129 | |||||
Furniture and fixtures | 260,574 | 321,281 | |||||||
Leasehold improvements | 231,782 | 231,782 | |||||||
3,392,223 | 2,997,192 | ||||||||
Less accumulated depreciation and amortization | (2,651,470 | ) | (2,325,233 | ) | |||||
$ | 740,753 | $ | 671,959 |
CAPITALIZED_SOFTWARE_COSTS_Tab
CAPITALIZED SOFTWARE COSTS (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Notes to Financial Statements | ' | ||||||||
Capitalized software costs | ' | ||||||||
2014 | 2013 | ||||||||
Capitalized software costs | $ | 2,443,128 | $ | 2,443,128 | |||||
Less accumulated amortization | (2,443,128 | ) | (2,370,046 | ) | |||||
$ | - | $ | 73,082 |
CUSTOMER_RELATIONSHIPS_Tables
CUSTOMER RELATIONSHIPS (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Notes to Financial Statements | ' | ||||||||
Customer relationships | ' | ||||||||
2014 | 2013 | ||||||||
Customer relationships | $ | 4,223,161 | $ | 4,223,161 | |||||
Less accumulated amortization | (2,305,142 | ) | (1,882,826 | ) | |||||
$ | 1,918,019 | $ | 2,340,335 | ||||||
Estimated aggregate amortization expense | ' | ||||||||
Year ending June 30: | |||||||||
2015 | $ | 422,316 | |||||||
2016 | $ | 422,316 | |||||||
2017 | $ | 422,316 | |||||||
2018 | $ | 422,316 | |||||||
2019 | $ | 228,755 | |||||||
Thereafter | $ | - | |||||||
ACCRUED_LIABILITIES_Tables
ACCRUED LIABILITIES (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accrued liabilities | ' | ||||||||
2014 | 2013 | ||||||||
Accrued stock-based compensation | $ | 1,122,188 | $ | 497,012 | |||||
Accrued compensation | 352,764 | 295,377 | |||||||
Accrued other liabilities | 171,930 | 176,892 | |||||||
Accrued dividends | 154,473 | 123,578 | |||||||
Accrued interest | - | 4,123 | |||||||
$ | 1,801,355 | $ | 1,096,982 |
NOTES_PAYABLE_Tables
NOTES PAYABLE (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Notes Payable | ' | ||||||||
Notes Payable: | 2014 | 2013 | |||||||
Note payable to a bank, due in monthly installments of $40,104 with an annual interest rate of 4.25%. This note was retired September 1, 2013. | $ | - | $ | 119,567 | |||||
Note payable to a bank, due in monthly installments of $10,355 bearing interest at 3.95% due July 15, 2014. This note has been retired subsequent to June 30, 2014. | 10,490 | 131,643 | |||||||
Note payable to a bank, due in monthly installments of $9,359 bearing interest at 4.9% due September 15, 2014 | 29,508 | 137,380 | |||||||
Note payable to a bank, due in monthly installments of $10,286 bearing interest at 4.39% due September 20, 2014, this note is a conversion of a multi-advance note payable initially put in place on September 21, 2010, secured by related capital equipment purchases. | 31,570 | 150,655 | |||||||
Note payable to a bank, due in monthly installments of $7,860 bearing interest at 3.73% due February 9, 2017, this note is a conversion of a multi-advance note payable initially put in place on February 19, 2012, secured by related capital equipment purchases. | 239,293 | 322,818 | |||||||
Note payable to a bank, due in monthly installments of $7,860 bearing interest at 4.17% due July 15, 2014, this note is a conversion of a multi-advance note payable initially put in place on August 26, 2013, secured by related capital equipment purchases. | 338,287 | - | |||||||
649,148 | 862,063 | ||||||||
Less current portion notes payable | (226,900 | ) | (551,421 | ) | |||||
$ | 422,248 | $ | 310,642 | ||||||
Maturities of notes payable and capital leases | ' | ||||||||
Year ending June 30: | |||||||||
2015 | $ | 226,900 | |||||||
2016 | $ | 174,095 | |||||||
2017 | $ | 150,047 | |||||||
2018 | $ | 91,385 | |||||||
2019 | $ | 6,721 |
DEFERRED_REVENUE_Tables
DEFERRED REVENUE (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Deferred Revenue Disclosure [Abstract] | ' | ||||||||
Deferred revenue | ' | ||||||||
2014 | 2013 | ||||||||
Subscription | $ | 855,462 | 725,852 | ||||||
Maintenance and support | 886,518 | 946,759 | |||||||
Consulting and other | 98,831 | 104,715 | |||||||
$ | 1,840,811 | $ | 1,777,326 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Net deferred tax liabilities | ' | ||||||||
2014 | 2013 | ||||||||
Deferred tax assets: | |||||||||
NOL Carryover | $ | 45,484,720 | $ | 44,760,272 | |||||
Depreciation | - | - | |||||||
Amortization | - | - | |||||||
Allowance for Bad Debts | 27,300 | 74,100 | |||||||
Accrued Expenses | 455,041 | 199,977 | |||||||
Deferred Revenue | 283,900 | 396,086 | |||||||
Deferred tax liabilities: | |||||||||
Depreciation | -120,626 | (97,517 | ) | ||||||
Amortization | -392,137 | (348,847 | ) | ||||||
Valuation allowance | -45,738,198 | (44,984,071 | ) | ||||||
Net deferred tax asset | $ | - | $ | - | |||||
Summary of income tax | ' | ||||||||
2014 | 2013 | ||||||||
Book Income | $ | (971,157 | ) | $ | 100,420 | ||||
Stock for Services | (21,650 | ) | 149,651 | ||||||
Life Insurance | 30,390 | 27,098 | |||||||
Meals & Entertainment | 12,793 | 10,277 | |||||||
Change in deferred revenue | (112,186 | ) | 36,064 | ||||||
Change in accrual and Allowance | 208,264 | (37,153 | ) | ||||||
Change in depreciation | (52,340 | ) | (99,084 | ) | |||||
NOL utilization | - | (187,273 | ) | ||||||
Valuation allowance | 905,886 | - | |||||||
$ | - | $ | - |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Jun. 30, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Minimum future rental payments | ' | ||||
Year ending June 30: | |||||
2015 | $ | 155,542 | |||
2016 | $ | 160,215 | |||
2017 | $ | 165,024 | |||
2018 | $ | 169,993 | |||
2019 | $ | 73,847 |
STOCK_COMPENSATION_PLAN_Tables
STOCK COMPENSATION PLAN (Tables) | 12 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||
Notes to Financial Statements | ' | ||||||||||||||||||
Options and warrants activity | ' | ||||||||||||||||||
Number of Options | Number of Warrants | Price per share | |||||||||||||||||
Outstanding at June 30, 2012 | 12,880 | 50,000 | $ | 1.50-1.80 | |||||||||||||||
Granted | — | 424,763 | $ | 3.50-3.60 | |||||||||||||||
Exercised | — | (30,644 | ) | $ | 1.8 | ||||||||||||||
Cancelled | (580 | ) | (19,356 | ) | $ | 1.80-2.50 | |||||||||||||
Expired | — | — | $ | — | |||||||||||||||
Outstanding at June 30, 2013 | 12,300 | 424,763 | $ | 1.50-3.60 | |||||||||||||||
Granted | — | 76,744 | $ | 6.45 | |||||||||||||||
Exercised | (12,300 | ) | (184,134 | ) | $ | 1.50-3.60 | |||||||||||||
Cancelled | — | — | $ | — | |||||||||||||||
Expired | — | — | $ | — | |||||||||||||||
Outstanding at June 30, 2014 | — | 317,373 | $ | 3.50-6.45 | |||||||||||||||
DESCRIPTION_OF_BUSINESS_Detail
DESCRIPTION OF BUSINESS (Details Narrative) (USD $) | 12 Months Ended |
Jun. 30, 2014 | |
Incorporated state | 'State of Nevada |
Subscription and management fees | $2,330,700 |
Subscription and management fees paid by issuance of promissory notes | $1,200,000 |
Subsidiary Park City Group Inc. [Member] | ' |
Ownership interest by parent | 98.76% |
SIGNIFICANT_ACCOUNTING_POLICIE3
SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Jun. 30, 2014 | |
Furniture and fixtures [Member] | MaximumMember | ' |
Property plant and equipment useful life | '5 years |
Furniture and fixtures [Member] | MinimumMember | ' |
Property plant and equipment useful life | '7 years |
ComputerEquipment [Member] | ' |
Property plant and equipment useful life | '3 years |
Assets Held Under Capital Leases [Member] | ' |
Property plant and equipment useful life | '3 years |
SIGNIFICANT_ACCOUNTING_POLICIE4
SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 12 Months Ended |
Jun. 30, 2014 | |
Customer Relationships [Member] | ' |
Amortization of intangible asset useful life | '10 years |
Acquired Developed Software [Member] | ' |
Amortization of intangible asset useful life | '5 years |
Developed Software [Member] | ' |
Amortization of intangible asset useful life | '3 years |
SIGNIFICANT_ACCOUNTING_POLICIE5
SIGNIFICANT ACCOUNTING POLICIES (Details 2) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Accounting Policies [Abstract] | ' | ' |
Dilutive effect of options and warrants | ' | ' |
Weighted average shares outstanding assuming dilution | 16,710,000 | 13,246,000 |
SIGNIFICANT_ACCOUNTING_POLICIE6
SIGNIFICANT ACCOUNTING POLICIES (Details 3) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Number Outstanding | ' | 12,300 | 12,880 |
Number exercisable | 317,373 | ' | ' |
Weighted average exercise price, Exercisable | $4.26 | ' | ' |
Range 3.50 to 3.60 [Member] | OptionsAndWarrants [Member] | ' | ' | ' |
Number Outstanding | 240,629 | ' | ' |
Weighted average exercise price | $3.56 | ' | ' |
Number exercisable | 240,629 | ' | ' |
Weighted average exercise price, Exercisable | $3.56 | ' | ' |
Range 6.45 [Member] | OptionsAndWarrants [Member] | ' | ' | ' |
Number Outstanding | 76,744 | ' | ' |
Weighted average exercise price | $6.45 | ' | ' |
Number exercisable | 76,744 | ' | ' |
Weighted average exercise price, Exercisable | $6.45 | ' | ' |
SIGNIFICANT_ACCOUNTING_POLICIE7
SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Customer percent of subscription revenue | 20.00% | 20.00% |
Allowance for doubtful accounts | $70,000 | $190,000 |
Capitalized development costs | $73,082 | $146,166 |
Computation of diluted EPS due to the anti-dilutive effect | 317,373 | 436,110 |
Common issued on conversion of preferred stock | 1,029,818 | 1,029,818 |
OptionsAndWarrants [Member] | ' | ' |
Minimum exercise prices | $3.50 | ' |
Maximum exercise prices | $6.45 | ' |
LIQUIDITY_AND_WORKING_CAPITAL_
LIQUIDITY AND WORKING CAPITAL (Details Narrative) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' |
Negative working capital | $654,042 | $1,124,476 |
Increase in working capital | $470,434 | ' |
RECEIVABLES_Details
RECEIVABLES (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Accounting Policies [Abstract] | ' | ' |
Accounts receivable | $2,927,983 | $2,573,366 |
Allowance for doubtful accounts | -70,000 | -1,900,000 |
Accounts receivable, Net | $2,857,983 | $2,383,366 |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Property, Plant and Equipment [Abstract] | ' | ' |
Computer equipment | $2,899,867 | $2,444,129 |
Furniture and fixtures | 260,574 | 321,281 |
Leasehold improvements | 231,782 | 231,782 |
Property and equipment, gross | 3,392,223 | 2,997,192 |
Less accumulated depreciation and amortization | -2,651,470 | -2,325,233 |
Property and equipment, Net | $740,753 | $671,959 |
PROPERTY_AND_EQUIPMENT_Details1
PROPERTY AND EQUIPMENT (Details Narrative) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Property And Equipment Details Narrative | ' | ' |
Depreciation expense | $383,930 | $332,925 |
CAPITALIZED_SOFTWARE_COSTS_Det
CAPITALIZED SOFTWARE COSTS (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Notes to Financial Statements | ' | ' |
Capitalized software costs | $2,443,128 | $2,443,128 |
Less accumulated amortization | -2,443,128 | -2,370,046 |
Capitalized software costs, Net | ' | $73,082 |
CAPITALIZED_SOFTWARE_COSTS_Det1
CAPITALIZED SOFTWARE COSTS (Details Narrative) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Notes to Financial Statements | ' | ' |
Amortization expense | $73,082 | $146,166 |
CUSTOMER_RELATIONSHIPS_Details
CUSTOMER RELATIONSHIPS (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Notes to Financial Statements | ' | ' |
Customer relationships | $4,223,161 | $4,223,161 |
Less accumulated amortization | -2,305,142 | -1,882,826 |
Customer relationships, Net | $1,918,019 | $2,340,335 |
CUSTOMER_RELATIONSHIPS_Details1
CUSTOMER RELATIONSHIPS (Details 1) (USD $) | Jun. 30, 2014 |
Notes to Financial Statements | ' |
2015 | $422,316 |
2016 | 422,316 |
2017 | 422,316 |
2018 | 422,316 |
2019 | 228,755 |
Thereafter | ' |
CUSTOMER_RELATIONSHIPS_Details2
CUSTOMER RELATIONSHIPS (Details Narrative) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Notes to Financial Statements | ' | ' |
Amortization expense | $422,316 | $422,316 |
ACCRUED_LIABILITIES_Details
ACCRUED LIABILITIES (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Payables and Accruals [Abstract] | ' | ' |
Accrued stock-based compensation | $1,122,188 | $497,012 |
Accrued compensation | 352,764 | 295,377 |
Accrued other liabilities | 171,930 | 176,892 |
Accrued dividends | 154,473 | 123,578 |
Accrued interest | ' | 4,123 |
Accrued liabilities | $1,801,355 | $1,096,982 |
NOTES_PAYABLE_Details
NOTES PAYABLE (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Capital lease obligations and notes payable | $649,148 | $862,063 |
Less current portion of capital lease obligations and notes payable | -226,900 | -551,421 |
Non current capital lease obligations and notes payable | 422,248 | 310,642 |
Bank 1 [Member] | ' | ' |
Notes payable | ' | 119,567 |
Monthly debt payment installment | 40,104 | 40,104 |
Annual interest rate | 4.25% | 4.25% |
Bank 2 [Member] | ' | ' |
Notes payable | 10,490 | 131,643 |
Monthly debt payment installment | 10,355 | 10,355 |
Annual interest rate | 3.95% | 3.95% |
Bank 3 [Member] | ' | ' |
Notes payable | 29,508 | ' |
Monthly debt payment installment | 9,359 | ' |
Annual interest rate | 4.90% | ' |
Bank 3 [Member] | ' | ' |
Notes payable | ' | 137,380 |
Monthly debt payment installment | ' | 9,359 |
Annual interest rate | ' | 4.90% |
Bank 4 [Member] | ' | ' |
Notes payable | 31,570 | ' |
Monthly debt payment installment | 10,286 | ' |
Annual interest rate | 4.39% | ' |
Bank 4 [Member] | ' | ' |
Notes payable | ' | 150,655 |
Monthly debt payment installment | ' | 10,286 |
Annual interest rate | ' | 4.39% |
Bank 5 [Member] | ' | ' |
Notes payable | 239,293 | 322,818 |
Monthly debt payment installment | 7,860 | 7,860 |
Annual interest rate | 3.73% | 3.73% |
Bank 6 [Member] | ' | ' |
Notes payable | 338,287 | ' |
Monthly debt payment installment | $7,860 | $7,860 |
Annual interest rate | 4.17% | 4.17% |
NOTES_PAYABLE_Details_1
NOTES PAYABLE (Details 1) (USD $) | Jun. 30, 2014 |
Summary of maturities of notes payable and capital leases | ' |
2015 | $226,900 |
2016 | 174,095 |
2017 | 150,047 |
2018 | 91,385 |
2019 | $6,721 |
LINES_OF_CREDIT_Details_Narrat
LINES OF CREDIT (Details Narrative) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Debt Disclosure [Abstract] | ' | ' |
Line of credit annual interest rate | 3.50% | ' |
Line of credit annual interest rate | '3.5% + LIBOR | ' |
Line of credit outstanding | $1,200,000 | $1,200,000 |
DEFERRED_REVENUE_Details
DEFERRED REVENUE (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Summary of deferred Revenue | ' | ' |
Deferred revenue | $1,840,811 | $1,777,326 |
SubscriptionArrangement [Member] | ' | ' |
Summary of deferred Revenue | ' | ' |
Deferred revenue | 855,462 | 725,852 |
ConsultingAndOtherMaintenanceAndSupport [Member] | ' | ' |
Summary of deferred Revenue | ' | ' |
Deferred revenue | 886,518 | 946,759 |
MaintenanceAndSupportConsultingAndOther [Member] | ' | ' |
Summary of deferred Revenue | ' | ' |
Deferred revenue | $98,831 | $104,715 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Deferred tax assets: | ' | ' |
NOL Carryover | $45,484,720 | $44,760,272 |
Depreciation | ' | ' |
Amortization | ' | ' |
Allowance for Bad Debts | 27,300 | 74,100 |
Accrued Expenses | 455,041 | 199,977 |
Deferred Revenue | 283,900 | 396,086 |
Deferred tax liabilities: | ' | ' |
Depreciation | -120,626 | -97,517 |
Amortization | -392,137 | -348,847 |
Valuation allowance | -45,738,198 | -44,984,071 |
Net deferred tax asset | ' | ' |
INCOME_TAXES_Details_1
INCOME TAXES (Details 1) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' |
Book Income | ($971,157) | $100,420 |
Stock for Services | -21,650 | 149,651 |
Life Insurance | 30,390 | 27,098 |
Meals & Entertainment | 12,793 | 10,277 |
Change in deferred revenue | -112,186 | 36,064 |
Change in accrual and allowance | 208,264 | -37,153 |
Change in depreciation | -52,340 | -99,084 |
NOL utilization | ' | -187,273 |
Valuation allowance | 905,886 | ' |
Total | ' | ' |
INCOME_TAXES_Details_Narrative
INCOME TAXES (Details Narrative) (USD $) | Jun. 30, 2014 |
Income Tax Disclosure [Abstract] | ' |
Net operating loss carryforwards | $116,627,500 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Jun. 30, 2014 |
Commitments and Contingencies Disclosure [Abstract] | ' |
2015 | $155,542 |
2016 | 160,215 |
2017 | 165,024 |
2018 | 169,993 |
2019 | $73,847 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Narrative) (USD $) | 12 Months Ended |
Jun. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Operating Lease expiration date | 1-Nov-12 |
Extended time of commercial lease | '7 years |
Operating lease monthly rent expense | $12,367 |
STOCK_COMPENSATION_PLAN_DETAIL
STOCK COMPENSATION PLAN (DETAILS) (USD $) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Share based compensation, options | ' | ' |
Outstanding at Beginning of Period | 12,300 | 12,880 |
Granted | ' | ' |
Exercised | -12,300 | ' |
Cancelled | ' | -580 |
Expired | ' | ' |
Outstanding at End of Period | ' | 12,300 |
Share based compensation, warrants | ' | ' |
Outstanding at Beginning of Period | 424,763 | 50,000 |
Granted | 76,744 | 424,763 |
Exercised | -184,134 | -30,644 |
Cancelled | ' | -19,356 |
Expired | ' | ' |
Outstanding at End of Period | 317,373 | 424,763 |
Share based compensation, Price Per Share | ' | ' |
Granted, Price per share | $6.45 | ' |
Exercised, Price per share | ' | $1.80 |
Cancelled, Price per share | ' | ' |
Expired, Price per share | ' | ' |
MinimumMember | ' | ' |
Share based compensation, Price Per Share | ' | ' |
Outstanding at Beginning of Period, Price Per Share | $1.50 | $1.50 |
Granted, Price per share | ' | $3.50 |
Exercised, Price per share | $1.50 | ' |
Cancelled, Price per share | ' | $1.80 |
Outstanding at End of Period, Price Per Share | $3.50 | $1.50 |
MaximumMember | ' | ' |
Share based compensation, Price Per Share | ' | ' |
Outstanding at Beginning of Period, Price Per Share | $3.60 | $1.80 |
Granted, Price per share | ' | $3.60 |
Exercised, Price per share | $3.60 | ' |
Cancelled, Price per share | ' | $2.50 |
Outstanding at End of Period, Price Per Share | $6.45 | $3.60 |
Recovered_Sheet1
STOCK COMPENSATION PLAN (Details Narrative) (USD $) | 12 Months Ended |
Jun. 30, 2014 | |
Stock Compensation Plan Details Narrative | ' |
Annual compensation | $10,000 |
Quarterly compensation payment | $2,500 |
Appointment grant of shares of restricted stock | 150,000 |
Restricted stock vesting period | '5 years |