Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Sep. 07, 2016 | Dec. 31, 2015 | |
Document And Entity Information | |||
Entity Registrant Name | PARK CITY GROUP INC | ||
Entity Central Index Key | 50,471 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2016 | ||
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 | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 19,286,430 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,016 | ||
Entity Public Float | $ 153,106,000 | ||
Entity Trading Symbol | PCYG |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Current assets: | ||
Cash | $ 11,443,388 | $ 11,325,572 |
Receivables, net allowance | 3,547,968 | 1,640,591 |
Prepaid expense and other current assets | 393,275 | 463,427 |
Total current assets | 15,384,631 | 13,429,590 |
Property and equipment, net | 469,383 | 764,442 |
Other assets: | ||
Deposits and other assets | 14,866 | 14,866 |
Investments | 471,584 | 0 |
Customer relationships | 1,182,600 | 1,314,000 |
Goodwill | 20,883,886 | 20,883,886 |
Capitalized software costs, net | 182,942 | 0 |
Total other assets | 22,735,878 | 22,212,752 |
Total assets | 38,589,892 | 36,406,784 |
Current liabilities: | ||
Accounts payable | 580,309 | 817,119 |
Accrued liabilities | 1,502,203 | 2,521,111 |
Deferred revenue | 2,717,094 | 2,331,920 |
Line of credit | 2,500,000 | 2,500,000 |
Current portion of notes payable | 239,199 | 227,301 |
Total current liabilities | 7,538,805 | 8,397,451 |
Long-term liabilities: | ||
Notes payable, less current portion | 491,253 | 349,192 |
Other long-term liabilities | 57,275 | 75,518 |
Total liabilities | 8,087,333 | 8,822,161 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $0.01 par value, 50,000,000 shares authorized; 19,229,313 and 18,875,586 issued and outstanding at June 30, 2016 and 2015, respectively | 192,296 | 188,759 |
Additional paid-in capital | 73,272,620 | 70,296,496 |
Accumulated deficit | (42,970,413) | (42,907,628) |
Total stockholders' equity | 30,502,559 | 27,584,623 |
Total liabilities and stockholders' equity | 38,589,892 | 36,406,784 |
Series B Preferred [Member] | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 30,000,000 shares authorized; 625,375 and 625,375 shares of Series B Preferred issued and outstanding at June 30, 2016 and 2015 respectively, 180,213 and 74,200 shares of Series B1 Preferred issued and outstanding at June 30, 2016 and 2015 respectively | 6,254 | 6,254 |
Series B-1 Preferred [Member] | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 30,000,000 shares authorized; 625,375 and 625,375 shares of Series B Preferred issued and outstanding at June 30, 2016 and 2015 respectively, 180,213 and 74,200 shares of Series B1 Preferred issued and outstanding at June 30, 2016 and 2015 respectively | $ 1,802 | $ 742 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2016 | Jun. 30, 2015 |
Stockholders' equity: | ||
Preferred stock, par value | $ .01 | $ .01 |
Preferred stock, Authorized | 30,000,000 | 30,000,000 |
Common stock, par value | $ .01 | $ .01 |
Common stock, Authorized | 50,000,000 | 50,000,000 |
Common stock, Issued | 19,229,313 | 18,875,586 |
Common stock, outstanding | 19,229,313 | 18,875,586 |
Series B Preferred [Member] | ||
Stockholders' equity: | ||
Preferred stock, Issued | 625,375 | 625,375 |
Preferred stock, outstanding | 625,375 | 625,375 |
Series B-1 Preferred [Member] | ||
Stockholders' equity: | ||
Preferred stock, Issued | 180,213 | 74,200 |
Preferred stock, outstanding | 180,213 | 74,200 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | |||
Revenue | $ 14,010,693 | $ 13,648,715 | $ 11,928,416 |
Operating expense: | |||
Cost of revenue and product support | 4,279,724 | 5,256,251 | 5,087,973 |
Sales and marketing | 5,371,005 | 5,941,349 | 4,741,574 |
General and administrative | 3,165,077 | 4,279,641 | 3,812,265 |
Depreciation and amortization | 507,446 | 768,165 | 879,329 |
Impairment of intangibles | 0 | 1,495,703 | 0 |
Total operating expenses | 13,323,252 | 17,741,109 | 14,521,141 |
Income (loss) from operations | 687,441 | (4,092,394) | (2,592,725) |
Other (expense) income: | |||
Interest income (expense), net | 5,190 | 242,621 | 102,580 |
Loss on disposition of Investment | (26,128) | 0 | 0 |
Income (loss) before income taxes | 666,503 | (3,849,773) | (2,490,145) |
Provision for income taxes | 0 | 0 | 0 |
Net income (loss) | 666,503 | (3,849,773) | (2,490,145) |
Dividends on preferred stock | (729,288) | (568,821) | (617,891) |
Restructuring of Series B Preferred | 0 | (2,141,980) | 0 |
Net loss applicable to common shareholders | $ (62,785) | $ (6,560,574) | $ (3,108,036) |
Weighted average shares, basic and diluted | 19,151,000 | 17,375,000 | 16,710,000 |
Basic and diluted loss per share | $ 0 | $ (0.38) | $ (0.19) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | |||
Net income (loss) | $ 666,503 | $ (3,849,773) | $ (2,490,145) |
Other Comprehensive Income (Loss): | |||
Unrealized loss on marketable securities | (26,128) | 0 | 0 |
Reclassification adjustment | 26,128 | 0 | 0 |
Net income (loss) on marketable securities | 0 | 0 | 0 |
Comprehensive income (loss) | $ 666,503 | $ (3,849,773) | $ (2,490,145) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity (Deficit) - USD ($) | Series B Preferred [Member] | Series B-1 Preferred [Member] | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Beginning Balance, Amount at Jun. 30, 2013 | $ 4,119 | $ 161,285 | $ 43,314,986 | $ (33,239,018) | $ 10,241,372 | |
Beginning Balance, Shares at Jun. 30, 2013 | 411,927 | 16,128,530 | ||||
Stock issued for: | ||||||
Compensation, Amount | $ 3,124 | 1,089,574 | 1,092,698 | |||
Compensation, Shares | 312,364 | |||||
Cash, Amount | $ 2,771 | 1,659,922 | 1,662,693 | |||
Cash, Shares | 277,092 | |||||
Charitable Contribution, Amount | $ 150 | 96,750 | 96,900 | |||
Charitable Contribution, Shares | 15,000 | |||||
Preferred Dividends-Declared | (617,891) | (617,891) | ||||
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 | ||||
Series B Restructure, Amount | $ 2,142 | 2,139,838 | (2,141,980) | |||
Series B Restructure, Shares | 214,198 | |||||
Series B Redemption, Amount | $ (7) | (7,493) | (7,500) | |||
Series B Redemption, Shares | (750) | |||||
Stock issued for: | ||||||
Compensation, Amount | $ 300 | $ 3,664 | 2,156,229 | 2,160,193 | ||
Compensation, Shares | 30,000 | 366,033 | ||||
Cash, Amount | $ 6,931 | 7,802,664 | 7,809,595 | |||
Cash, Shares | 693,090 | |||||
Charitable Contribution, Amount | $ 150 | 157,800 | 157,950 | |||
Charitable Contribution, Shares | 15,000 | |||||
Preferred Dividends - PIK, Amount | $ 442 | $ 150 | 157,800 | 157,950 | ||
Preferred Dividends - PIK, Shares | 44,200 | |||||
Acquisition, Amount | $ 8,734 | 10,813,162 | $ 10,821,896 | |||
Acquisition, Shares | 873,438 | 10,821,897 | ||||
Preferred Dividends-Declared | (568,821) | $ (568,821) | ||||
Net Income (loss) | (3,849,773) | (3,849,773) | ||||
Ending Balance, Amount at Jun. 30, 2015 | $ 6,254 | $ 742 | $ 188,759 | 70,296,496 | (42,907,628) | 27,584,623 |
Ending Balance, Shares at Jun. 30, 2015 | 625,375 | 74,200 | 18,875,586 | |||
Stock issued for: | ||||||
Compensation, Amount | $ 400 | $ 3,208 | 2,084,133 | 2,087,741 | ||
Compensation, Shares | 40,000 | 320,770 | ||||
Cash, Amount | $ 235 | 199,613 | 199,848 | |||
Cash, Shares | 23,528 | |||||
Charitable Contribution, Amount | 0 | |||||
Preferred Dividends - PIK, Amount | $ 660 | 659,470 | $ 660,130 | |||
Acquisition, Shares | 10,821,897 | |||||
Preferred Dividends-Declared | (729,288) | $ (729,288) | ||||
Exercise of Options/Warrants, Amount | $ 94 | 32,908 | 33,002 | |||
Exercise of Options/Warrants, Shares | 9,429 | |||||
Net Income (loss) | 666,503 | 666,503 | ||||
Ending Balance, Amount at Jun. 30, 2016 | $ 6,254 | $ 1,802 | $ 192,296 | $ 73,272,620 | $ (42,970,413) | $ 30,502,559 |
Ending Balance, Shares at Jun. 30, 2016 | 625,375 | 180,213 | 19,229,313 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Cash Flows From Operating Activities: | |||
Net income (loss) | $ 666,503 | $ (3,849,773) | $ (2,490,145) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and Amortization | 507,446 | 768,165 | 879,329 |
Impairment of intangibles | 0 | 1,495,703 | 0 |
Bad debt expense | 68,140 | 186,780 | 186,740 |
Stock compensation expense | 1,010,312 | 2,760,329 | 1,719,375 |
Charitable non-cash donations | 0 | 157,950 | 96,900 |
Loss on short-term marketable securities | 26,128 | 0 | 0 |
Decrease (increase) in: | |||
Trade Receivables | (1,975,517) | 710,302 | (661,357) |
Prepaids and other assets | 70,152 | (501,957) | (20,747) |
Increase (decrease) in: | |||
Accounts payable | (236,810) | (49,296) | 84,634 |
Accrued liabilities | (18,305) | 136,517 | 49,252 |
Deferred revenue | 385,174 | (107,123) | 63,485 |
Net cash provided by (used in) operating activities | 503,223 | 1,707,597 | (92,534) |
Cash Flows From Investing Activities: | |||
Cash from sale of marketable securities | 4,612,908 | 0 | 0 |
Payments received on notes receivable | 0 | 300,000 | 0 |
Net cash received in acquisition | 0 | 22,119 | 0 |
Cash advanced on Note Receivable | 0 | (2,559,460) | (1,200,000) |
Cash from sale of property and equipment | 0 | 0 | 6,505 |
Purchase of property and equipment | (80,987) | (369,536) | (459,230) |
Capitalization of software costs | (182,942) | 0 | 0 |
Purchase of long-term investments | (75,584) | 0 | 0 |
Purchase of marketable securities | (4,639,036) | 0 | 0 |
Net cash used in investing activities | (365,641) | (2,606,877) | (1,652,725) |
Cash Flows From Financing Activities: | |||
Proceeds from employee stock plans | 199,848 | 203,211 | 153,875 |
Proceeds from exercise of options and warrants | 33,002 | 0 | 633,454 |
Proceeds from issuance of notes payable | 0 | 172,795 | 338,287 |
Proceeds from issuance of stock | 0 | 7,606,384 | 1,493,818 |
Net increase in lines of credit | 0 | 1,300,000 | 0 |
Preferred stock redemption | 0 | (7,500) | 0 |
Dividends paid | (10,575) | (157,147) | (586,999) |
Payments on notes payable and capital leases | (242,041) | (245,450) | (551,202) |
Net cash (used in) provided by financing activities | (19,766) | 8,872,293 | 1,481,233 |
Net increase (decrease) in cash and cash equivalents | 117,816 | 7,973,013 | (264,026) |
Cash and cash equivalents at beginning of period | 11,325,572 | 3,352,559 | 3,616,585 |
Cash and cash equivalents at end of period | 11,443,388 | 11,325,572 | 3,352,559 |
Supplemental Disclosure of Cash Flow Information: | |||
Cash paid for income taxes | 0 | 0 | 6,634 |
Cash paid for interest | 46,508 | 80,534 | 75,343 |
Supplemental Disclosure of Non-Cash Investing and Financing Activities: | |||
Preferred stock to pay accrued liabilities | 400,000 | 300,000 | 0 |
Common stock to pay accrued liabilities | 1,687,741 | 1,860,191 | 1,107,698 |
Dividends accrued on preferred stock | 729,288 | 568,821 | 617,891 |
Dividends paid with preferred stock | 660,130 | 442,002 | 0 |
Conversion of accounts receivable into notes receivable | 0 | 0 | 1,622,863 |
Series B restructure | 0 | 2,141,980 | 0 |
Note payable for long-term investment | 396,000 | 0 | $ 0 |
Fair value of assets and liaiblities acquired: | |||
Receivables | 152,340 | 152,340 | |
Prepaid expense | 17,500 | 17,500 | |
Customer relationships | 1,314,000 | 1,314,000 | |
Goodwill | 16,077,953 | 16,077,953 | |
Accounts payable | (128,126) | ||
Deferred revenue | (598,232) | ||
Net assets acquired | $ 16,835,435 | $ 16,835,435 | |
Common stock issued | 10,821,897 | 10,821,897 | |
Receivables eliminated in consolidation | $ 6,035,657 | $ 6,035,657 | |
Cash received in acquisition | $ 2,219 | $ 22,119 |
DESCRIPTION OF BUSINESS AND ACQ
DESCRIPTION OF BUSINESS AND ACQUISITION OF REPOSITRAK, INC. | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
DESCRIPTION OF BUSINESS AND ACQUISITION OF REPOSITRAK, INC. | Summary of Business The Company is incorporated in the state of Nevada. The Company has three subsidiaries, PC Group, Inc. (formerly, Park City Group, Inc.), a Utah Corporation (98.76% owned), and Park City Group, Inc., (formerly, Prescient Applied Intelligence, Inc.), a Delaware Corporation (100% owned) and ReposiTrak, Inc., a Utah corporation (100% owned). 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. As a result of the acquisition of ReposiTrak, Inc. (“ ReposiTrak FSMA DQSA |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | Principles of Consolidation The financial statements presented herein reflect the consolidated financial position of Park City Group, Inc. and subsidiaries, including ReposiTrak and 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 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. Concentration of Credit Risk and Significant Customers 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, 2016, there were no customers that accounted for greater than 10% of total revenue. During the years ended June 30, 2015 and 2014, the Company had one customer, ReposiTrak, Inc. (acquired on June 30, 2015) that accounted for greater than 10% of total revenue in both years. 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 Company’s customers were to deteriorate, adversely affecting their ability to make payments, allowances may be required. 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, 2016, 2015 and 2014, the allowance for doubtful accounts was $75,000, $94,000, and $70,000, 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 5-7 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. See Note 7 regarding impairment charges for the year ended June 30, 2015. 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, 2016, 2015 and 2014, the Company did not incur any expense associated with warranty claims. Revenue Recognition The Company recognizes 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. The Company recognizes subscription, hosting, premium support, and maintenance revenue ratably over the length of the agreement beginning on the commencement dates of each agreement or when revenue recognition conditions are satisfied. Revenue from license and professional services agreements are recognized as delivered. Revenue from license and professional services agreements are recognized as delivered. 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. Agreements with multiple deliverables such as subscriptions, support, and professional services, are accounted for separately if the deliverables have standalone value upon delivery. Subscription services have standalone value as the services are typically sold separately. When considering whether professional services have standalone value, the Company considers the following factors: (i) availability of services from other vendors, (ii) the nature and timing of professional services, and (iii) sales of similar services sold separately. Multiple deliverable arrangements are separated into units of accounting and the total contract consideration is allocated to each unit based on relative selling prices. 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 2016, 2015 and 2014 capitalized development costs of $0, $0, and $73,082 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. Advertising Costs Advertising is expensed as incurred. Advertising costs were approximately $113,000, $21,000, and $14,000 for the years ended June 30, 2016, 2015 and 2014, respectively. 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 Diluted EPS For the year ended June 30, 2016, 2015 and 2014 warrants to purchase 1,416,749, 1,426,178 and 317,373 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 $10.00 per share at June 30, 2016. 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 for the year ended June 30, 2014, as the effect would have been anti-dilutive. Series B Preferred was no longer convertible to common stock for the year ended June 30, 2016 and 2015. Year ended June 30, 2016 Year ended June 30, 2015 Year ended June 30, 2014 Dilutive effect of warrants - - - Weighted average shares outstanding assuming dilution 19,151,000 17,375,000 16,710,000 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. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents are stated at fair value. Marketable Securities Management determines the appropriate classification of marketable securities at the time of purchase and reevaluates such determination at each balance sheet date. Securities are classified as available for sale and are carried at fair value, with the change in unrealized gains and losses, net of tax, reported as a separate component on the consolidated statements of comprehensive income. Fair value is determined based on quoted market rates when observable or utilizing data points that are observable, such as quoted prices, interest rates and yield curves. The cost of securities sold is based on the specific-identification method. Interest on securities classified as available for sale is also included as a component of interest income. 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. |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Jun. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | Investee companies that are not consolidated, but over which the Company exercises significant influence, are accounted for under the equity method of accounting. Whether or not the Company exercises significant influence with respect to an investee depends on an evaluation of several factors including, among others, representation on the investee company’s board of directors and ownership level, which is generally a 20% to 50% interest in the voting securities of the investee company. Under the equity method of accounting, an investee company’s accounts are not reflected within the Company’s consolidated balance sheets and statements of operations; however, the Company’s share of the earnings or losses of the investee company is reflected in the consolidated statements of operations. The Company’s carrying value in an equity method investee company is reflected in the caption ‘‘Investments’’ in the Company’s consolidated balance sheets. As of June 30, 2016, investments represent a 36% ownership in a privately-held corporation, and represents initial (January 2016) and subsequent investments – there were nominal earnings for the year ended June 30, 2016. When the Company’s carrying value in an equity method investee company is reduced to zero, no further losses are recorded in the Company’s consolidated financial statements unless the Company guaranteed obligations of the investee company or has committed additional funding. When the investee company subsequently reports income, the Company will not record its share of such income until it equals the amount of its share of losses not previously recognized. |
RECEIVABLES
RECEIVABLES | 12 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
RECEIVABLES | Accounts receivable consist of the following: 2016 2015 Accounts receivable $ 3,622,968 $ 1,734,591 Allowance for doubtful accounts (75,000) (94,000 ) $ 3,547,968 $ 1,640,591 Accounts receivable consist of trade accounts receivable and unbilled amounts recognized as revenue during the year for which invoicing occurs 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, 2016 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | Property and equipment are stated at cost and consist of the following at June 30: 2016 2015 Computer equipment $ 3,350,390 $ 3,269,403 Furniture and fixtures 260,574 260,574 Leasehold improvements 231,782 231,782 3,842,746 3,761,759 Less accumulated depreciation and amortization (3,373,363 ) (2,997,317 ) $ 469,383 $ 764,442 Depreciation expense for the years ended June 30, 2016 and 2015 was $376,046 and $345,847, respectively. |
CAPITALIZED SOFTWARE COSTS
CAPITALIZED SOFTWARE COSTS | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
CAPITALIZED SOFTWARE COSTS | Capitalized software costs consist of the following at June 30: 2016 2015 Capitalized software costs $ 2,626,070 $ 2,443,128 Less accumulated amortization (2,443,128) (2,443,128 ) $ 182,942 $ - Amortization expense for the years ended June 30, 2016 and 2015 was $0 and $0, respectively. |
ACQUISITION RELATED INTANGIBLE
ACQUISITION RELATED INTANGIBLE ASSETS, NET | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
ACQUISITION RELATED INTANGIBLE ASSETS, NET | Customer relationships consist of the following at June 30: 2016 2015 Customer relationships $ 5,537,161 $ 5,537,161 Less accumulated amortization (4,354,561) (2,727,458 ) Less impairment charge - (1,495,703 ) $ 1,182,600 $ 1,314,000 Amortization expense for the years ended June 30, 2016 and 2015 was $131,400 and $422,316, respectively. The Company recognized a non-cash impairment charge of $1.5 million during the year ended June 30, 2015, due principally to decreased margins on customers acquired in connection with the Prescient acquisition. In managementÂ’s determination, the carrying value of these relationships exceeded their estimated fair values as determined by future discounted cash flow projections. When projecting the stream of future cash flows for purposes of determining long-lived asset recoverability, management makes assumptions, incorporating market conditions, sales growth rates, and operating expense. Estimated aggregate amortization expense per year are as follows: Years ending June 30: 2017 131,400 2018 131,400 2019 131,400 2020 131,400 Thereafter 657,000 |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Jun. 30, 2016 | |
Payables and Accruals [Abstract] | |
ACCRUED LIABILITIES | Accrued liabilities consist of the following at June 30, 2016 and 2015: 2016 2015 Accrued stock-based compensation $ 768,055 $ 1,665,731 Accrued compensation 336,957 506,064 Accrued other liabilities 214,432 225,140 Accrued dividends 182,759 124,176 $ 1,502,203 $ 2,521,111 |
NOTES PAYABLE
NOTES PAYABLE | 12 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | The Company had the following notes payable obligations at June 30, 2016 and 2015: Notes Payable: 2016 2015 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. 62,445 152,530 Note payable to a bank, due in monthly installments of $7,860 bearing interest at 4.17% due August 26, 2018, 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. 187,799 272,191 Note payable to a bank, due in monthly installments of $4,932 bearing interest at 4.91% due March 18, 2018, secured by related capital equipment purchases. 98,980 151,772 Note payable to an entity, due in monthly installments of $4,009 bearing interest at 4.00% due July 1, 2019, secured by long-term investments. 381,228 - 730,452 576,493 Less current portion notes payable (239,199) (227,301 ) $ 491,253 $ 349,192 Maturities of notes payable and capital leases at June 30, 2016 are as follows: Year ending June 30: 2017 $ 239,199 2018 $ 170,232 2019 $ 44,200 2020 $ 276,821 2021 $ - |
LINES OF CREDIT
LINES OF CREDIT | 12 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
LINES OF CREDIT | The CompanyÂ’s line of credit with a bank has an annual interest rate of 1.71% + the greater of zero percent or LIBOR. The line of credit is scheduled to mature on December 27, 2016. The balance on the line of credit was $2,500,000 at June 30, 2016 and June 30, 2015. |
DEFERRED REVENUE
DEFERRED REVENUE | 12 Months Ended |
Jun. 30, 2016 | |
Deferred Revenue Disclosure [Abstract] | |
DEFERRED REVENUE | Deferred revenue consisted of the following at June 30: 2016 2015 Subscription $ 2,221,264 $ 1,742,909 Other 495,830 589,011 $ 2,717,094 $ 2,331,920 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
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: 2016 2015 Deferred tax assets: NOL carryover $ 48,359,356 $ 45,886,227 Amortization - 21,115 Allowance for bad debts 29,250 19,500 Accrued expense 254,971 649,635 Deferred revenue 1,059,667 676,138 Deferred tax liabilities: Depreciation (88,495 ) (140,838 ) Amortization (184,989 ) - Valuation allowance (49,429,760 ) (47,211,777 ) 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, 2016 and 2015 due to the following: 2016 2015 Book income (loss) $ 259,941 $ (1,500,591 ) Stock for services 134,721 172,502 Stock for charity - 61,601 Intangible impairment - 583,324 Change in accrual stock (394,664 ) 211,982 Life insurance 26,438 26,438 Meals & entertainment 10,785 12,885 Change in deferred revenue 383,528 (41,778 ) Change in allowance for doubtful accounts (7,410 ) (7,800 Change in depreciation 103,589 (137,747 ) NOL utilization (516,928 ) - Valuation allowance - 619,719 $ - $ - At June 30, 2016, the Company had net operating loss carry-forwards of approximately $123,998,300 that may be offset against past and future taxable income from the year 2013 through 2035. No tax benefit has been reported in the June 30, 2016 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, PrescientÂ’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 consolidated statements of operations in the provision for income taxes. As of June 30, 2016, 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, 2012. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
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 $13,122. Minimum future rental payments under the non-cancelable operating leases are as follows: Year ending June 30: 2017 $ 165,024 2018 $ 169,993 2019 $ 73,847 2020 $ - 2021 $ - 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, 2016 | |
Notes to Financial Statements | |
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 employeeÂ’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, 2016 and 2015. |
STOCKHOLDERS EQUITY
STOCKHOLDERS EQUITY | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
STOCKHOLDERS EQUITY | 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 $150,000 payable in shares of the Company’s restricted Common Stock calculated based on the market value of the shares of Common Stock on the date of grant. The shares vest ratably over a five-year period. ● Reimbursement of all travel expenses related to performance of Directors’ duties on behalf of the Company. Officers, Key Employees, Consultants and Directors Stock Compensation. In January 2013, the Board of Directors approved the Second Amended and Restated the 2011 Stock Plan (the “ Amended 2011 Plan During the year ended June 30, 2016 the Company issued 37,729 shares to its directors and 278,000 shares to employees and consultants under these plans, 311,538 of which are included in the rollforward of Restricted Stock units below. Restricted Stock Units Restricted Stock Units Weighted Average Grant Date Fair Value ($/share) Outstanding at July 1, 2014 1,586,964 $ 5.05 Granted 145,339 9.54 Vested and issued (348,186) 4.74 Forfeited (33,147) 9.35 Outstanding at June 30, 2015 1,350,970 5.51 Granted 48,228 10.51 Vested and issued (311,538) 5.10 Forfeited (36,516) 6.51 Outstanding at June 30, 2016 1,051,144 $ 5.82 The number of restricted stock units outstanding at June 30, 2016 included 2,000 units that have vested but for which shares of common stock had not yet been issued pursuant to the terms of the agreement. As of June 30, 2016, there was approximately $6.1 million of unrecognized stock-based compensation expense under our equity compensation plans, which is expected to be recognized on a straight line basis over a weighted average period of 5.19 years. Warrants Outstanding warrants were issued in connection with private placements of the Company's common stock and with the Series B Preferred Restructure. The following table summarizes information about fixed stock warrants outstanding at June 30, 2016: Warrants Outstanding at June 30, 2016 Warrants Exercisable at June 30, 2016 Range of exercise prices Number Outstanding Weighted average remaining contractual life (years) Weighted average exercise price Number exercisable Weighted average exercise price $ 3.50 – 4.00 1,316,268 3.26 $ 3.92 1,316,268 $ 3.92 $ 6.45 – 10.00 100,481 2.49 $ 7.29 100,481 $ 7.29 1,416,749 3.21 $ 4.16 1,416,749 $ 4.16 Preferred Stock The Company’s certificate of incorporation currently authorizes the issuance of up to 30,000,000 shares of ‘blank check’ preferred stock with designations, rights, and preferences as may be determined from time to time by the Company’s Board of Directors, of which 700,000 shares are currently designated as Series B Preferred Stock (“ Series B Preferred Series B-1 Preferred PIK Shares During the year ended June 30, 2016, the Company issued 66,013 shares for dividends in kind and 40,000 shares in satisfaction of an accrued bonus payable to the Company's CEO. |
ACQUISITION OF REPOSITRAK
ACQUISITION OF REPOSITRAK | 12 Months Ended |
Jun. 30, 2016 | |
Acquisition Of Repositrak | |
ACQUISITION OF REPOSITRAK | On June 30, 2015, the Company consummated the acquisition of 100% of the outstanding capital stock of ReposiTrak, Inc. The accompanying audited consolidated financial statements of the Company as of and for the year ended June 30, 2015 contain the results of operations of ReposiTrak from June 30, 2015. We issued 873,438 shares of our common stock in connection with this acquisition. We have accounted for the acquisition as the purchase of a business. The assets acquired and the liabilities assumed of ReposiTrak have been recorded at their respective fair values. The excess of the purchase price over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill. Goodwill is attributed to buyer-specific value resulting from expected synergies, including long-term cost savings, as well as industry relationships that are not included in the fair values of assets. Goodwill will not be amortized, but tested annually for impairment. The purchase price consisted of the 873,438 shares of our common stock. The fair value of the shares issued was $10,821,897 and was determined using the closing price of our common stock on June 30, 2015. The price paid to acquire ReposiTrak was $10,830,897, approximately $9,000 of which was for direct transaction costs associated with the issuance of equity. The net acquisition cost of $10,799,778 which excludes $31,119 of cash acquired from ReposiTrak were allocated based on their estimated fair value of the assets acquired and liabilities assumed, as follows: Receivables $ 152,340 Prepaid expense 17,500 Customer relationships 1,314,000 Goodwill 16,077,953 Accounts payable (128,126 ) Deferred revenue (598,232 ) Net assets acquired 16,835,435 Common stock issued 10,821,897 Receivables eliminated in consolidation 6,035,657 Cash received in acquisition $ 22,119 Unaudited pro-forma results of operations for the twelve months ended June 30, 2015 and 2014, as though ReposiTrak had been acquired as of July 1, 2013, are as follows: Three Months Ended Sep 30, 2014 Dec 31, 2014 Mar 31, 2015 Jun 30, 2015 Year Ended 2015 Year Ended 2014 Revenue $ 2,826,813 $ 2,932,825 $ 2,870,646 $ 2,941,511 $ 11,571,795 $ 9,777,431 Loss from Operations (1,046,986) (1,290,524) (1,302,437) (3,222,538) (6,862,485 ) (5,232,552 ) Net Loss (1,049,834) (1,317,510) (1,317,858) (3,241,545) (6,926,747 ) (5,303,773 ) Net Loss Applicable to Common Shareholders (1,204,307) (1,471,983) (3,595,537) (3,365,721) (9,637,548 ) (5,921,664 ) Basic and Diluted EPS (0.07) (0.08 ) (0.20 ) (0.18) (0.53 ) (0.34 ) |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Jun. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | In May 2014, August 2015, April 2016 and May 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09 (ASC Topic 606), Revenue from Contracts with Customers, ASU 2015-14 (ASC Topic 606) Revenue from Contracts with Customers, Deferral of the Effective Date, ASU 2016-10 (ASC Topic 606) Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing , and ASU 2016-12 (ASC Topic 606) Revenue from Contracts with Customers, Narrow-Scope Improvements and Practical Expedients, respectively. ASC Topic 606 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. It also requires entities to disclose both quantitative and qualitative information that enable financial statements users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The amendments in these ASUs are effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted for annual periods beginning after December 15, 2016. This standard may be applied retrospectively to all prior periods presented, or retrospectively with a cumulative adjustment to retained earnings in the year of adoption. The Company is in the process of assessing the impact, if any, on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09 (ASC Topic 718), Stock Compensation—Improvements to Employee Share-Based Payment Accounting. The amendments in this ASU are intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax consequences, classification on the consolidated statement of cash flows and treatment of forfeitures. The amendments in this ASU are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. The Company is in the process of assessing the impact, if any, of this ASU on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 (ASC Topic 842), Leases. The ASU amends a number of aspects of lease accounting, including requiring lessees to recognize operating leases with a term greater than one year on their balance sheet as a right-of-use asset and corresponding lease liability, measured at the present value of the lease payments. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The Company is in the process of assessing the impact on its consolidated financial statements. In April 2015 and August 2015, the FASB issued ASU 2015-03 (ASC Subtopic 835-30), Interest-Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements- Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting, |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | Series B Restructuring On February 4, 2015, holders of the Company’s Series B Convertible Preferred Stock (“ Series B Preferred Holders Restructuring Agreement Series B Amendment Series B Certificate of Designation PIK Shares Series B Restructuring Additional Shares Series B Warrants Warrant Shares The terms of the Series B Restructuring were amended on March 31, 2015 as follows: (i) the Series B Certificate of Designation was further amended (the “ Second Series B Amendment The Company issued 58,103 and 7,910 PIK Shares to Messrs. Fields and Allen in the year ended June 30, 2016, and 38,055, 5,488, and 657 PIK Shares to Messrs. Fields, Allen, and Ms. Fields in the year ended June 30, 2015, respectively. Service Agreement. FMI The Company had payables of $32,253 and $37,893 to FMI at June 30, 2016 and 2015 respectively, under this Agreement. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Subsequent to June 30, 2016, the Company issued 57,117 shares of common stock in connection with issuances under the Company's Employee Stock Purchase Plan and for the vesting of employee stock grants. The Company also issued 28,011 shares of Series B-1 Preferred for dividends paid in kind on the outstanding shares of Series B Preferred, and for an accrued bonus. In accordance with the Subsequent Events Topic of the FASB ASC 855, we have evaluated subsequent events, through the filing date and noted no additional subsequent events that are reasonably likely to impact the financial statements. |
SIGNIFICANT ACCOUNTING POLICI27
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The financial statements presented herein reflect the consolidated financial position of Park City Group, Inc. and subsidiaries, including ReposiTrak and 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 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 CompanyÂ’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 CompanyÂ’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. |
Concentration of Credit Risk and Significant Customers | 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, 2016, there were no customers that accounted for greater than 10% of total revenue. During the years ended June 30, 2015 and 2014, the Company had one customer, ReposiTrak, Inc. (acquired on June 30, 2015) that accounted for greater than 10% of total revenue in both years. |
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 CompanyÂ’s customers were to deteriorate, adversely affecting their ability to make payments, allowances may be required. |
Allowance for Doubtful Accounts Receivable | The Company offers credit terms on the sale of the CompanyÂ’s products to a significant majority of the CompanyÂ’s customers and requires no collateral from these customers. The Company performs ongoing credit evaluations of customersÂ’ financial condition and maintains an allowance for doubtful accounts receivable based upon the CompanyÂ’s historical experience and a specific review of accounts receivable at the end of each period. As of June 30, 2016, 2015 and 2014, the allowance for doubtful accounts was $75,000, $94,000, and $70,000, 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 5-7 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. See Note 7 regarding impairment charges for the year ended June 30, 2015. |
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, 2016, 2015 and 2014, the Company did not incur any expense associated with warranty claims. |
Revenue Recognition | The Company recognizes 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. The Company recognizes subscription, hosting, premium support, and maintenance revenue ratably over the length of the agreement beginning on the commencement dates of each agreement or when revenue recognition conditions are satisfied. Revenue from license and professional services agreements are recognized as delivered. Revenue from license and professional services agreements are recognized as delivered. 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. Agreements with multiple deliverables such as subscriptions, support, and professional services, are accounted for separately if the deliverables have standalone value upon delivery. Subscription services have standalone value as the services are typically sold separately. When considering whether professional services have standalone value, the Company considers the following factors: (i) availability of services from other vendors, (ii) the nature and timing of professional services, and (iii) sales of similar services sold separately. Multiple deliverable arrangements are separated into units of accounting and the total contract consideration is allocated to each unit based on relative selling prices. |
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 2016, 2015 and 2014 capitalized development costs of $0, $0, and $73,082 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. |
Advertising Costs | Advertising is expensed as incurred. Advertising costs were approximately $113,000, $21,000, and $14,000 for the years ended June 30, 2016, 2015 and 2014, respectively. |
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 Diluted EPS For the year ended June 30, 2016, 2015 and 2014 warrants to purchase 1,416,749, 1,426,178 and 317,373 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 $10.00 per share at June 30, 2016. 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 for the year ended June 30, 2014, as the effect would have been anti-dilutive. Series B Preferred was no longer convertible to common stock for the year ended June 30, 2016 and 2015. Year ended June 30, 2016 Year ended June 30, 2015 Year ended June 30, 2014 Dilutive effect of options and warrants - - - Weighted average shares outstanding assuming dilution 19,151,000 17,375,000 16,710,000 |
Marketable Securities | Management determines the appropriate classification of marketable securities at the time of purchase and reevaluates such determination at each balance sheet date. Securities are classified as available for sale and are carried at fair value, with the change in unrealized gains and losses, net of tax, reported as a separate component on the consolidated statements of comprehensive income. Fair value is determined based on quoted market rates when observable or utilizing data points that are observable, such as quoted prices, interest rates and yield curves. The cost of securities sold is based on the specific-identification method. Interest on securities classified as available for sale is also included as a component of interest income. |
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. |
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 POLICI28
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Depreciation and amortization of property and equipment | 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 5-7 Computer Equipment 3 Equipment under capital leases 3 Leasehold improvements See below |
Amortization of intangible assets | 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 |
Diluted EPS | Year ended June 30, 2016 Year ended June 30, 2015 Year ended June 30, 2014 Dilutive effect of options and warrants - - - Weighted average shares outstanding assuming dilution 19,151,000 17,375,000 16,710,000 |
RECEIVABLES (Tables)
RECEIVABLES (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Accounts receivable | Accounts receivable consist of the following: 2016 2015 Accounts receivable $ 3,622,968 $ 1,734,591 Allowance for doubtful accounts (75,000) (94,000 ) $ 3,547,968 $ 1,640,591 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and equipment are stated at cost and consist of the following at June 30: 2016 2015 Computer equipment $ 3,350,390 $ 3,269,403 Furniture and fixtures 260,574 260,574 Leasehold improvements 231,782 231,782 3,842,746 3,761,759 Less accumulated depreciation and amortization (3,373,363 ) (2,997,317 ) $ 469,383 $ 764,442 |
CAPITALIZED SOFTWARE COSTS (Tab
CAPITALIZED SOFTWARE COSTS (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Capitalized software costs | Capitalized software costs consist of the following at June 30: 2016 2015 Capitalized software costs $ 2,626,070 $ 2,443,128 Less accumulated amortization (2,443,128) (2,443,128 ) $ 182,942 $ - |
ACQUISITION RELATED INTANGIBL32
ACQUISITION RELATED INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Customer relationships | Customer relationships consist of the following at June 30: 2016 2015 Customer relationships $ 5,537,161 $ 5,537,161 Less accumulated amortization (4,354,561) (2,727,458 ) Less impairment charge - (1,495,703 ) $ 1,182,600 $ 1,314,000 |
Estimated aggregate amortization expense | Estimated aggregate amortization expenses per year are as follows: Years ending June 30: 2017 131,400 2018 131,400 2019 131,400 2020 131,400 Thereafter 657,000 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Payables and Accruals [Abstract] | |
Accrued liabilities | Accrued liabilities consist of the following at June 30, 2016 and 2015: 2016 2015 Accrued stock-based compensation $ 768,055 $ 1,665,731 Accrued compensation 336,957 506,064 Accrued other liabilities 214,432 225,140 Accrued dividends 182,759 124,176 $ 1,502,203 $ 2,521,111 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Notes Payable | The Company had the following notes payable obligations at June 30, 2016 and 2015: Notes Payable: 2016 2015 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. 62,445 152,530 Note payable to a bank, due in monthly installments of $7,860 bearing interest at 4.17% due August 26, 2018, 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. 187,799 272,191 Note payable to a bank, due in monthly installments of $4,932 bearing interest at 4.91% due March 18, 2018, secured by related capital equipment purchases. 98,980 151,772 Note payable to an entity, due in monthly installments of $4,009 bearing interest at 4.00% due July 1, 2019, secured by long-term investments. 381,228 - 730,452 576,493 Less current portion notes payable (239,199) (227,301 ) $ 491,253 $ 349,192 |
Maturities of notes payable and capital leases | Maturities of notes payable and capital leases at June 30, 2016 are as follows: Year ending June 30: 2017 $ 239,199 2018 $ 170,232 2019 $ 44,200 2020 $ 276,821 2021 $ - |
DEFERRED REVENUE (Tables)
DEFERRED REVENUE (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Deferred Revenue Disclosure [Abstract] | |
Deferred revenue | Deferred revenue consisted of the following at June 30: 2016 2015 Subscription $ 2,221,264 $ 1,742,909 Other 495,830 589,011 $ 2,717,094 $ 2,331,920 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Net deferred tax liabilities | Net deferred tax liabilities consist of the following components at June 30: 2016 2015 Deferred tax assets: NOL carryover $ 48,359,356 $ 45,886,227 Amortization - 21,115 Allowance for bad debts 29,250 19,500 Accrued expense 254,971 649,635 Deferred revenue 1,059,667 676,138 Deferred tax liabilities: Depreciation (88,495 ) (140,838 ) Amortization (184,989 ) - Valuation allowance (49,429,760 ) (47,211,777 ) Net deferred tax asset $ - $ - |
Summary of income tax | 2016 2015 Book income (loss) $ 259,941 $ (1,500,591 ) Stock for services 134,721 172,502 Stock for charity - 61,601 Intangible impairment - 583,324 Change in accrual stock (394,664 ) 211,982 Life insurance 26,438 26,438 Meals & entertainment 10,785 12,885 Change in deferred revenue 383,528 (41,778 ) Change in allowance for doubtful accounts (7,410 ) (7,800 Change in depreciation 103,589 (137,747 ) NOL utilization (516,928 ) - Valuation allowance - 619,719 $ - $ - |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum future rental payments | Minimum future rental payments under the non-cancelable operating leases are as follows: Year ending June 30: 2017 $ 165,024 2018 $ 169,993 2019 $ 73,847 2020 $ - 2021 $ - |
STOCKHOLDERS EQUITY (Tables)
STOCKHOLDERS EQUITY (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Notes to Financial Statements | |
Restricted stock units | Restricted Stock Units Weighted Average Grant Date Fair Value ($/share) Outstanding at July 1, 2014 1,586,964 $ 5.05 Granted 145,339 9.54 Vested and issued (348,186) 4.74 Forfeited (33,147) 9.35 Outstanding at June 30, 2015 1,350,970 5.51 Granted 48,228 10.51 Vested and issued (311,538) 5.10 Forfeited (36,516) 6.51 Outstanding at June 30, 2016 1,051,144 $ 5.82 |
Fixed stock options and warrants outstanding | The following table summarizes information about fixed stock warrants outstanding at June 30, 2016: Warrants Outstanding at June 30, 2016 Warrants Exercisable at June 30, 2016 Range of exercise prices Number Outstanding Weighted average remaining contractual life (years) Weighted average exercise price Number exercisable Weighted average exercise price $ 3.50 – 4.00 1,316,268 3.26 $ 3.92 1,316,268 $ 3.92 $ 6.45 – 10.00 100,481 2.49 $ 7.29 100,481 $ 7.29 1,416,749 3.21 $ 4.16 1,416,749 $ 4.16 |
ACQUISITION OF REPOSITRAK, INC.
ACQUISITION OF REPOSITRAK, INC. (Tables) - ReposiTrak [Member] | 12 Months Ended |
Jun. 30, 2016 | |
Acquisition of ReposiTrak, assets acquired and liabilities assumed | The purchase price consisted of the 873,438 shares of our common stock. The fair value of the shares issued was $10,821,897 and was determined using the closing price of our common stock on June 30, 2015. The price paid to acquire ReposiTrak was $10,830,897, approximately $9,000 of which was for direct transaction costs associated with the issuance of equity. The net acquisition cost of $10,799,778 which excludes $31,119 of cash acquired from ReposiTrak were allocated based on their estimated fair value of the assets acquired and liabilities assumed, as follows: Receivables $ 152,340 Prepaid expense 17,500 Customer relationships 1,314,000 Goodwill 16,077,953 Accounts payable (128,126 ) Deferred revenue (598,232 ) Net assets acquired 16,835,435 Common stock issued 10,821,897 Receivables eliminated in consolidation 6,035,657 Cash received in acquisition $ 22,119 |
Unaudited pro-forma results of operations | Unaudited pro-forma results of operations for the twelve months ended June 30, 2015 and 2014, as though ReposiTrak had been acquired as of July 1, 2013, are as follows: Three Months Ended Sep 30, 2014 Dec 31, 2014 Mar 31, 2015 Jun 30, 2015 Year Ended 2015 Year Ended 2014 Revenue $ 2,826,813 $ 2,932,825 $ 2,870,646 $ 2,941,511 $ 11,571,795 $ 9,777,431 Loss from Operations (1,046,986) (1,290,524) (1,302,437) (3,222,538) (6,862,485 ) (5,232,552 ) Net Loss (1,049,834) (1,317,510) (1,317,858) (3,241,545) (6,926,747 ) (5,303,773 ) Net Loss Applicable to Common Shareholders (1,204,307) (1,471,983) (3,595,537) (3,365,721) (9,637,548 ) (5,921,664 ) Basic and Diluted EPS (0.07) (0.08 ) (0.20 ) (0.18) (0.53 ) (0.34 ) |
DESCRIPTION OF BUSINESS AND A40
DESCRIPTION OF BUSINESS AND ACQUISITION OF REPOSITRAK, INC. (Details Narrative) | 12 Months Ended |
Jun. 30, 2016 | |
Incorporated state | Nevada |
PC Group Inc. [Member] | |
Incorporated state | Utah |
Ownership interest by parent | 98.76% |
Park City Group Inc. [Member] | |
Incorporated state | Delaware |
Ownership interest by parent | 100.00% |
ReposiTrak [Member] | |
Incorporated state | Utah |
Ownership interest by parent | 100.00% |
SIGNIFICANT ACCOUNTING POLICI41
SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Jun. 30, 2016 | |
Furniture and fixtures [Member] | MinimumMember | |
Property plant and equipment useful life | 5 years |
Furniture and fixtures [Member] | MaximumMember | |
Property plant and equipment useful life | 7 years |
ComputerEquipment [Member] | |
Property plant and equipment useful life | 3 years |
Equipment Under Capital Leases [Member] | |
Property plant and equipment useful life | 3 years |
SIGNIFICANT ACCOUNTING POLICI42
SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 12 Months Ended |
Jun. 30, 2016 | |
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 POLICI43
SIGNIFICANT ACCOUNTING POLICIES (Details 2) - shares | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accounting Policies [Abstract] | |||
Dilutive effect of options and warrants | 0 | 0 | 0 |
Weighted average shares outstanding assuming dilution | 19,151,000 | 17,375,000 | 16,710,000 |
SIGNIFICANT ACCOUNTING POLICI44
SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accounting Policies [Abstract] | |||
Allowance for doubtful accounts | $ 75,000 | $ 94,000 | $ 70,000 |
Capitalized development costs | 0 | 0 | 73,082 |
Advertising expense | $ 113,000 | $ 21,000 | $ 14,000 |
Computation of diluted EPS due to the anti-dilutive effect | 1,416,749 | 1,426,178 | 317,373 |
RECEIVABLES (Details)
RECEIVABLES (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Accounting Policies [Abstract] | ||
Accounts receivable | $ 3,622,968 | $ 1,734,591 |
Allowance for doubtful accounts | (75,000) | (94,000) |
Accounts receivable, Net | $ 3,547,968 | $ 1,640,591 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Property, Plant and Equipment [Abstract] | ||
Computer equipment | $ 3,350,390 | $ 3,269,403 |
Furniture and fixtures | 260,574 | 260,574 |
Leasehold improvements | 231,782 | 231,782 |
Property and equipment, gross | 3,842,746 | 3,761,759 |
Less accumulated depreciation and amortization | (3,373,363) | (2,997,317) |
Property and equipment, Net | $ 469,383 | $ 764,442 |
PROPERTY AND EQUIPMENT (Detai47
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Property And Equipment Details Narrative | ||
Depreciation expense | $ 376,046 | $ 345,847 |
CAPITALIZED SOFTWARE COSTS (Det
CAPITALIZED SOFTWARE COSTS (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Notes to Financial Statements | ||
Capitalized software costs | $ 2,626,070 | $ 2,443,128 |
Less accumulated amortization | (2,443,128) | (2,443,128) |
Capitalized software costs, Net | $ 182,942 | $ 0 |
CAPITALIZED SOFTWARE COSTS (D49
CAPITALIZED SOFTWARE COSTS (Details Narrative) - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Notes to Financial Statements | |||
Amortization expense | $ 0 | $ 0 | $ 73,082 |
ACQUISITION RELATED INTANGIBL50
ACQUISITION RELATED INTANGIBLE ASSETS, NET (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Notes to Financial Statements | ||
Customer relationships | $ 5,537,161 | $ 5,537,161 |
Less accumulated amortization | (4,354,561) | (2,727,458) |
Less impairment charge | 0 | (1,495,703) |
Total | $ 1,182,600 | $ 1,314,000 |
ACQUISITION RELATED INTANGIBL51
ACQUISITION RELATED INTANGIBLE ASSETS, NET (Details 1) | Jun. 30, 2016USD ($) |
Notes to Financial Statements | |
2,017 | $ 131,400 |
2,018 | 131,400 |
2,019 | 131,400 |
2,020 | 131,400 |
Thereafter | $ 657,000 |
ACQUISITION RELATED INTANGIBL52
ACQUISITION RELATED INTANGIBLE ASSETS, NET (Details Narrative) - USD ($) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Notes to Financial Statements | |||
Amortization expense | $ 131,400 | $ 422,316 | |
Non-cash impairment charge | $ 0 | $ 1,495,703 | $ 0 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Payables and Accruals [Abstract] | ||
Accrued stock-based compensation | $ 768,055 | $ 1,665,731 |
Accrued compensation | 336,957 | 506,064 |
Accrued other liabilities | 214,432 | 225,140 |
Accrued dividends | 182,759 | 124,176 |
Accrued liabilities | $ 1,502,203 | $ 2,521,111 |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Notes payable | $ 730,452 | $ 576,493 |
Less current portion of capital lease obligations and notes payable | (239,199) | (227,301) |
Non current capital lease obligations and notes payable | 491,253 | 349,192 |
Bank 1 [Member] | ||
Notes payable | 62,445 | 152,530 |
Monthly debt payment installment | $ 7,860 | $ 7,860 |
Annual interest rate | 3.73% | 3.73% |
Bank 2 [Member] | ||
Notes payable | $ 187,799 | $ 272,191 |
Monthly debt payment installment | $ 7,860 | $ 7,860 |
Annual interest rate | 4.17% | 4.17% |
Bank 3 [Member] | ||
Notes payable | $ 98,980 | |
Monthly debt payment installment | $ 4,932 | |
Annual interest rate | 4.91% | |
Bank 4 [Member] | ||
Notes payable | $ 381,228 | $ 0 |
Monthly debt payment installment | $ 4,009 | $ 4,009 |
Annual interest rate | 4.00% | 4.00% |
Bank3Member | ||
Notes payable | $ 151,772 | |
Monthly debt payment installment | $ 4,932 | |
Annual interest rate | 4.91% |
NOTES PAYABLE (Details 1)
NOTES PAYABLE (Details 1) - Notes Payable Other Payables [Member] | Jun. 30, 2016USD ($) |
Summary of maturities of notes payable and capital leases | |
2,017 | $ 239,199 |
2,018 | 170,232 |
2,019 | 44,200 |
2,020 | 276,821 |
2,021 | $ 0 |
LINES OF CREDIT (Details Narrat
LINES OF CREDIT (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Debt Disclosure [Abstract] | ||
Line of credit annual interest rate | 17.10% | |
Line of credit annual interest rate | the greater of zero percent or LIBOR | |
Line of Credit Maturity Date | Dec. 27, 2016 | |
Line of credit outstanding | $ 2,500,000 | $ 2,500,000 |
DEFERRED REVENUE (Details)
DEFERRED REVENUE (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Summary of deferred Revenue | ||
Deferred revenue | $ 2,717,094 | $ 2,331,920 |
Subscription [Member] | ||
Summary of deferred Revenue | ||
Deferred revenue | 2,221,264 | 1,742,909 |
Other [Member] | ||
Summary of deferred Revenue | ||
Deferred revenue | $ 495,830 | $ 589,011 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Deferred tax assets: | ||
NOL Carryover | $ 48,359,356 | $ 45,886,227 |
Depreciation | 0 | 0 |
Amortization | 0 | 12,115 |
Allowance for Bad Debts | 29,250 | 19,500 |
Accrued Expenses | 254,971 | 649,635 |
Deferred Revenue | 1,059,667 | 676,138 |
Deferred tax liabilities: | ||
Depreciation | (88,495) | (140,838) |
Amortization | (184,989) | 0 |
Valuation allowance | (49,429,760) | (47,211,777) |
Net deferred tax asset | $ 0 | $ 0 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
US federal income tax rate to pretax income from continuing operations | ||
Book Income | $ 259,941 | $ (1,500,591) |
Stock for Services | 134,720 | 172,502 |
Stock for Charity | 0 | 61,601 |
Intangible impairment | 0 | 583,324 |
Change in Accrual Stock | (394,664) | 211,982 |
Life Insurance | 26,438 | 26,438 |
Meals & Entertainment | 10,785 | 12,885 |
Change in deferred revenue | 383,528 | (41,778) |
Change in Allowance for doubtful accounts | (7,410) | (7,800) |
Change in depreciation | 103,589 | (137,747) |
NOL utilization | (516,928) | 0 |
Valuation allowance | 0 | (619,719) |
Total | $ 0 | $ 0 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Income Tax Disclosure [Abstract] | |
Net operating loss carryforwards | $ 123,998,300 |
Carryforward expiration date | Jun. 30, 2035 |
COMMITMENTS AND CONTINGENCIES61
COMMITMENTS AND CONTINGENCIES (Details) | Jun. 30, 2016USD ($) |
Minimum future rental payments under the non-cancelable operating leases | |
2,017 | $ 165,024 |
2,018 | 169,993 |
2,019 | 73,847 |
2,020 | 0 |
2,021 | $ 0 |
COMMITMENTS AND CONTINGENCIES62
COMMITMENTS AND CONTINGENCIES (Details Narrative) | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Operating Lease expiration date | Nov. 1, 2012 |
Extended time of commercial lease | 7 years |
Operating lease monthly rent expense | $ 13,122 |
STOCKHOLDERS EQUITY (Details)
STOCKHOLDERS EQUITY (Details) - Restricted Stock [Member] - $ / shares | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Restricted Stock Units | ||
Outstanding, beginning of period | 1,350,970 | 1,586,964 |
Granted | 48,228 | 145,339 |
Vested and issued | (311,538) | (348,186) |
Forfeited | (36,516) | (33,147) |
Outstanding, end of period | 1,051,144 | 1,350,970 |
Weighted Average Grant Date Fair Value | ||
Outstanding, beginning of period | $ 5.51 | $ 5.05 |
Granted | 10.51 | 9.54 |
Vested and issued | 5.10 | 4.74 |
Forfeited | 6.51 | 9.35 |
Outstanding, end of period | $ 5.82 | $ 5.51 |
STOCKHOLDERS EQUITY (Details 1)
STOCKHOLDERS EQUITY (Details 1) - OptionsAndWarrants [Member] | 12 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Number Outstanding | shares | 1,416,749 |
Weighted average exercise price | $ / shares | $ 4.16 |
Weighted average remaining contractual life (years), Outstanding | 3 years 2 months 16 days |
Number exercisable | shares | 1,416,749 |
Weighted average exercise price, Exercisable | $ / shares | $ 4.16 |
Range 3.50 to 4.00 [Member] | |
Number Outstanding | shares | 1,316,268 |
Weighted average exercise price | $ / shares | $ 3.92 |
Weighted average remaining contractual life (years), Outstanding | 3 years 3 months 4 days |
Number exercisable | shares | 1,316,268 |
Weighted average exercise price, Exercisable | $ / shares | $ 3.92 |
Range 6.45-10.00 [Member] | |
Number Outstanding | shares | 100,481 |
Weighted average exercise price | $ / shares | $ 7.29 |
Weighted average remaining contractual life (years), Outstanding | 2 years 5 months 26 days |
Number exercisable | shares | 100,481 |
Weighted average exercise price, Exercisable | $ / shares | $ 7.29 |
STOCKHOLDERS EQUITY (Details Na
STOCKHOLDERS EQUITY (Details Narrative) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Annual compensation | $ 10,000 | |
Quarterly compensation payment | $ 2,500 | |
Appointment grant of shares of restricted stock | 150,000 | |
Restricted stock vesting period | 5 years | |
Shares authorized for grant | 550,000 | |
Restricted stock issuable | 2,000 | |
Unrecognized stock based compensation expense | $ 6,100,000 | |
Recognition period | 5 years 2 months 9 days | |
Preferred stock authorized | 30,000,000 | 30,000,000 |
Shares issued in kind | 66,013 | |
Shares issued for bonus payable | 40,000 | |
Restricted Stock [Member] | ||
Shares issued pursuant to Plan | 311,538 | |
Director [Member] | ||
Shares issued pursuant to Plan | 37,729 | |
Employee Stock [Member] | ||
Shares issued pursuant to Plan | 278,000 | |
Series B Preferred [Member] | ||
Preferred stock, Issued | 625,375 | 625,375 |
Preferred stock, outstanding | 625,375 | 625,375 |
Series B-1 Preferred [Member] | ||
Preferred stock, Issued | 180,213 | 74,200 |
Preferred stock, outstanding | 180,213 | 74,200 |
ACQUISITION OF REPOSITRAK, IN66
ACQUISITION OF REPOSITRAK, INC. (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Fair value of assets and liaiblities acquired: | ||
Receivables | $ 152,340 | $ 152,340 |
Prepaid expenses | 17,500 | 17,500 |
Customer relationships | 1,314,000 | 1,314,000 |
Goodwill | 16,077,953 | 16,077,953 |
Accounts payable | (128,126) | |
Deferred revenue | (598,232) | |
Net assets acquired | $ 16,835,435 | $ 16,835,435 |
Common stock issued | 10,821,897 | 10,821,897 |
Receivables eliminated in consolidation | $ 6,035,657 | $ 6,035,657 |
Cash paid for acquisition | $ 2,219 | $ 22,119 |
ACQUISITION OF REPOSITRAK, IN67
ACQUISITION OF REPOSITRAK, INC. (Details 1) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Unaudited pro forma results of operations | ||||||
Revenue | $ 2,941,511 | $ 2,870,646 | $ 2,932,825 | $ 2,826,813 | $ 11,571,795 | $ 9,777,431 |
Loss from operations | (3,222,538) | (1,302,437) | (1,290,524) | (1,046,986) | (6,862,485) | (5,232,552) |
Net loss | $ (3,241,545) | $ (1,317,858) | $ (1,317,510) | $ (1,049,834) | $ (6,926,747) | $ (5,303,773) |
Net loss applicable to common shareholdres | $ (3,365,721) | $ (3,595,537) | $ (1,471,983) | $ (1,204,307) | $ (9,637,548) | $ (5,921,664) |
Basic and diluted loss per share | $ (0.18) | $ (0.20) | $ (0.08) | $ (0.07) | $ (0.53) | $ (0.34) |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | Jun. 30, 2016 | Jun. 30, 2015 |
Related Party Transactions [Abstract] | ||
Related party payables | $ 32,253 | $ 37,893 |