Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Sep. 30, 2018 | Nov. 05, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | CCUR Holdings, Inc. | |
Entity Central Index Key | 749,038 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Non-accelerated Filer | |
Trading Symbol | CCUR | |
Entity Common Stock, Shares Outstanding | 9,104,896 | |
Entity Emerging Growth Company | false | |
Entity Small Business | true |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 34,858 | $ 32,992 |
Equity securities, fair value | 5,143 | 6,629 |
Fixed maturity securities, available-for-sale, fair value | 9,657 | 13,381 |
Current maturities of mortgage loans receivable | 2,472 | 700 |
Receivable from sale of Content Delivery business held in escrow | 1,450 | 1,450 |
Advances receivable, net | 1,915 | 0 |
Prepaid expenses and other current assets | 1,221 | 1,419 |
Total current assets | 56,716 | 56,571 |
Property and equipment, net | 7 | 1 |
Deferred income taxes, net | 975 | 975 |
Deposit on mortgage loan receivable held in escrow | 0 | 1,400 |
Mortgage loans receivable, net of current maturities | 2,305 | 2,305 |
Other long-term assets, net | 45 | 54 |
Total assets | 60,048 | 61,306 |
Current liabilities: | ||
Accounts payable and accrued expenses | 944 | 1,289 |
Total current liabilities | 944 | 1,289 |
Long-term liabilities: | ||
Pension liability | 3,754 | 3,766 |
Other long-term liabilities | 181 | 185 |
Total liabilities | 4,879 | 5,240 |
Commitments and contingencies (Note 10) | ||
Stockholders' equity: | ||
Shares of common stock, par value $0.01; 14,000,000 authorized; 9,094,069 and 9,117,077 issued and outstanding at September 30 and June 30, 2018, respectively | 91 | 91 |
Capital in excess of par value | 210,027 | 210,083 |
Accumulated deficit | (151,480) | (151,795) |
Accumulated other comprehensive loss | (3,469) | (2,313) |
Total stockholders' equity | 55,169 | 56,066 |
Total liabilities and stockholders' equity | 60,048 | 61,306 |
Series Preferred Stock [Member] | ||
Stockholders' equity: | ||
Shares of preferred stock | 0 | 0 |
Preferred Class A [Member] | ||
Stockholders' equity: | ||
Shares of preferred stock | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2018 | Jun. 30, 2018 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 14,000,000 | 14,000,000 |
Common Stock, Shares, Issued | 9,094,069 | 9,117,077 |
Common Stock, Shares, Outstanding | 9,094,069 | 9,117,077 |
Series Preferred Stock [Member] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 1,250,000 | 1,250,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Class A [Member] | ||
Preferred Stock, Par or Stated Value Per Share | $ 100 | $ 100 |
Preferred Stock, Shares Authorized | 20,000 | 20,000 |
Preferred Stock, Shares Issued | 0 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Interest income on mortgage loans | $ 131 | $ 0 |
Operating expenses: | ||
General and administrative | 835 | 1,465 |
Total operating expenses | 835 | 1,465 |
Operating loss | (704) | (1,465) |
Other interest income | 880 | 101 |
Dividend income | 64 | 0 |
Net realized gain on investments | 201 | 0 |
Unrealized loss on equity securities, net | (457) | 0 |
Other income (expense), net | 15 | (8) |
Loss from continuing operations before income taxes | (1) | (1,372) |
Provision for income taxes | 2 | 6 |
Loss from continuing operations | (3) | (1,378) |
Income from discontinued operations, net of income taxes | 0 | 368 |
Net loss | $ (3) | $ (1,010) |
Basic and diluted earnings (loss) per share: | ||
Continuing operations | $ 0 | $ (0.15) |
Discontinued operations | 0 | 0.04 |
Net loss | $ 0 | $ (0.11) |
Weighted average shares outstanding - basic and diluted | 9,105,527 | 9,392,197 |
Cash dividends declared per common share | $ 0 | $ 0.12 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Net loss | $ (3) | $ (1,010) |
Other comprehensive loss: | ||
Net unrealized loss on available for sale investments | (877) | 0 |
Foreign currency translation adjustment | 13 | 24 |
Pension and post-retirement benefits, net of tax | 26 | (60) |
Other comprehensive loss: | (838) | (36) |
Comprehensive loss | $ (841) | $ (1,046) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows used in operating activities: | ||
Net loss | $ (3) | $ (1,010) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 0 | 329 |
Share-based compensation | 59 | 221 |
Recovery of provision for excess and obsolete inventories | 0 | (23) |
Non-cash accretion of interest on investments | (253) | (22) |
Payment-in-kind interest | (203) | 0 |
Net realized and unrealized loss on investments | 256 | 0 |
Foreign currency exchange loss | 0 | 110 |
Decrease (increase) in assets: | ||
Accounts receivable | 0 | (5) |
Inventories | 0 | 254 |
Prepaid expenses and other current assets | 284 | (385) |
Other long-term assets | 9 | (115) |
Increase (decrease) in liabilities: | ||
Accounts payable and accrued expenses | (301) | (2,456) |
Deferred revenue | 0 | (333) |
Pension and other long-term liabilities | 26 | (70) |
Net cash used in operating activities | (126) | (3,505) |
Cash flows provided by investing activities: | ||
Additions to property and equipment | (6) | (222) |
Origination and fundings of real-estate loans receivable | (415) | 0 |
Funding of cash advance receivable | (2,000) | 0 |
Proceeds from sale or maturity of securities | 6,167 | 4,783 |
Purchases of securities | (1,635) | (4,175) |
Net cash provided by investing activities | 2,111 | 386 |
Cash flows used in financing activities: | ||
Purchase of common stock for retirement | (115) | 0 |
Dividends paid | 0 | (1,148) |
Net cash used in financing activities | (115) | (1,148) |
Effect of exchange rates on cash and cash equivalents | (4) | (2) |
Increase (decrease) in cash and cash equivalents | 1,866 | (4,269) |
Cash and cash equivalents - beginning of year | 32,992 | 35,893 |
Cash and cash equivalents - end of period | 34,858 | 31,624 |
Cash paid during the period for: | ||
Interest | 0 | 0 |
Income taxes, net of refunds | $ 210 | $ 615 |
Overview of Business and Basis
Overview of Business and Basis of Presentation | 3 Months Ended |
Sep. 30, 2018 | |
Overview Of Business [Abstract] | |
Overview of Business | 1. Overview of Business and Basis of Presentation References herein to “CCUR Holdings,” the “Company,” “we,” “us,” or “our” refer to CCUR Holdings, Inc. and its subsidiaries unless the context specifically indicates otherwise. CCUR Holdings was formerly known as Concurrent Computer Corporation and changed its name on January 2, 2018. In May 2017, we sold our Real-Time business consisting of real-time Linux operating system versions, development and performance optimization tools, simulation software and other system software combined, in many cases, with computer platforms and services. These real-time products were sold to a wide variety of companies seeking high performance, real-time computer solutions in the defense, aerospace, financial and automotive markets around the world. On December 31, 2017, we completed the sale of our content delivery and storage business (the “Content Delivery business”) and other related assets to Vecima Networks, Inc. (“Vecima”) pursuant to an Asset Purchase Agreement, dated as of October 13, 2017, between the Company and Vecima. Substantially all liabilities associated with the Content Delivery business were assigned to Vecima as part of the transaction. The Content Delivery business provided advanced applications focused on storing, protecting, transforming, and delivering high value media. The Content Delivery business consisted of (i) software, hardware and services for intelligently streaming video content to a variety of consumer devices and storing and managing content in the network and (ii) Aquari™ Storage, a unified scale-out storage solutions product that is ideally suited for a wide range of enterprise IT and video applications that require advanced performance, very large storage capacities, and a high degree of reliability. Results of the Content Delivery business are retrospectively reported as discontinued operations in the accompanying consolidated financial statements for all periods presented. Prior year information has been adjusted to conform to the current year presentation. Unless otherwise stated, the information disclosed in the footnotes accompanying the consolidated financial statements refers to continuing operations. See Note 3 “Discontinued Operations” for more information regarding results from discontinued operations. In fiscal year 2018, following the sale of the Content Delivery business, we began developing a real estate operation initially through, among other things, making a number of commercial loans secured by real property. Based on the success of these activities, including the yield characteristics of these loans, and management’s experience in the real estate area, we created Recur Holdings LLC, a Delaware limited liability company wholly owned by the Company, during the first quarter of our fiscal year 2019. Through Recur Holdings LLC, we conduct, hold and manage our existing and future real estate operations. The accompanying unaudited consolidated financial statements included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to applicable rules and regulations. In the opinion of management, all adjustments of a normal recurring nature which were considered necessary for a fair presentation have been included. The year-end consolidated balance sheet data as of June 30, 2018 was derived from our audited consolidated financial statements and may not include all disclosures required by U.S. GAAP. The results of operations for the three months ended September 30, 2018 are not necessarily indicative of the results to be expected for the entire year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2018 filed with the SEC on September 7, 2018. Smaller Reporting Company We meet the SEC’s definition of a “Smaller Reporting Company,” and therefore qualify for the SEC’s reduced disclosure requirements for smaller reporting companies. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Investments in Debt and Equity Securities We determine the appropriate classification of investments in debt securities at the time of purchase and reevaluate such determinations at each balance sheet date. Debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. Held-to-maturity securities are recorded as either short term or long term in the consolidated balance sheet based on contractual maturity date and are stated at amortized cost. Marketable securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are reported at fair value, with unrealized gains and losses recognized in earnings. Debt securities not classified as held-to-maturity or as trading are classified as available-for-sale, and are carried at fair market value, with the unrealized gains and losses, net of tax, included in the determination of comprehensive income and reported in stockholders’ equity. We adopted Accounting Standards Update (“ASU”) No. 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), as amended by ASU 2018-03, Financial Instruments-Overall: Technical Corrections and Improvements , on July 1, 2018 (see Note 2). Upon adoption of ASU 2016-01 on July 1, 2018, we are no longer required to determine the classification of our equity securities and there will no longer be a requirement to assess equity securities for impairment since such securities will be measured at fair value through net income. Premiums and discounts on fixed maturity securities are amortized using the effective interest method. Prepayment assumptions are reviewed periodically and adjusted to reflect actual prepayments and changes in expectations. Dividends on equity securities are recognized when declared. When the Company sells a security, the difference between the sale proceeds and amortized cost (determined based on specific identification) is reported as a realized investment gain or loss. When a decline in the value of a specific investment is considered to be other-than-temporary at the balance sheet date, a provision for impairment is charged to earnings (included in realized gains (losses) on investments) and the cost basis of that investment is reduced. If the Company can assert that it does not intend to sell an impaired fixed maturity security and it is not more likely than not that it will have to sell the security before recovery of its amortized cost basis, then the other-than-temporary impairment is separated into two components: (i) the amount related to credit losses (recorded in earnings) and (ii) the amount related to all other factors (recorded in accumulated other comprehensive income, or “AOCI”). The credit-related portion of an “other-than-temporary” impairment is measured by comparing a security’s amortized cost to the present value of its current expected cash flows discounted at its effective yield prior to the impairment charge. If the Company intends to sell an impaired security, or it is more likely than not that it will be required to sell the security before recovery, an impairment charge to earnings is recorded to reduce the amortized cost of that security to fair value. In some cases, our debt investments may provide for a portion of the interest payable to be payment-in-kind (“PIK”) interest. To the extent interest is PIK, it is payable through the increase of the principal amount of the loan by the amount of the interest due on the then-outstanding principal amount of the loan. Advances Receivable During the three months ended September 30, 2018, we provided a $2,000 cash advance to an aviation business to fund the deposit required for the recipient’s aircraft purchases for up to six months, in exchange for paying us an upfront fee and a guaranty of the full repayment obligation from the principal of the third-party business. The fee is earned over the six-month advance period and is reported as part of other interest income within the statement of operations. Each quarter, we review the carrying value of this cash advance, and determine if an impairment reserve is necessary. As of September 30, 2018, our advance receivable was not impaired. Basic and Diluted Earnings (Loss) per Share Basic earnings (loss) per share is computed by dividing income (loss) by the weighted average number of common shares outstanding during each year. Diluted earnings (loss) per share is computed by dividing income (loss) by the weighted average number of common shares outstanding including dilutive common share equivalents. Under the treasury stock method, incremental shares representing the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued are included in the computation. Due to the loss from continuing operations for both periods presented, weighted average common share equivalents of 31,665 and 218,719 for the three months ended September 30, 2018 and 2017, respectively, were excluded from the calculation as their effect would have been anti-dilutive. Fair Value Measurements Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly fashion between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be either recorded or disclosed at fair value, we consider the most advantageous market in which it would transact and assumptions that market participants would use when pricing the asset or liability. ASC Topic 820, Fair Value Measurements and Disclosures • Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2 Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and • Level 3 Assets or liabilities for which fair value is based on valuation models with significant unobservable pricing inputs and which include the use of management estimates. Our investment portfolio consists of money market funds, domestic and international commercial paper, equity securities and corporate debt. All highly liquid investments with an original maturity of three months or less when purchased are considered to be cash equivalents. All cash equivalents are carried at cost less any unamortized premium or discount, which approximates fair value. All investments with original maturities of more than three months are classified as available-for-sale, trading or held-to-maturity investments. Our marketable securities, other than warrants and equity securities, are classified as available-for-sale and are reported at fair value with unrealized gains and losses, net of tax, reported in stockholders’ equity as a component of accumulated other comprehensive income or loss. Interest on securities is recorded in interest income. Any realized gains or losses are reported in the accompanying consolidated statements of operations. Equity securities are reported at fair value with unrealized gains and losses resulting from adjustments to fair value reported within our consolidated statements of operations. We provide fair value measurement disclosures of our securities in accordance with one of the three levels of fair value measurement. We have no financial assets that are measured on a recurring basis that fall within Level 3 of the fair value hierarchy. Our financial assets that are measured at fair value on a recurring basis as of September 30, 2018 and June 30, 2018 are as follows: As of September 30, 2018 Fair Value Quoted Prices in Active Markets (Level 1) Observable Inputs (Level 2) Unobservable Inputs (Level 3) Cash $ 4,194 $ 4,194 $ - $ - Money market funds 30,664 30,664 - - Cash and cash equivalents $ 34,858 $ 34,858 $ - $ - Common stock warrants $ 101 $ 101 $ - Common stock 4,218 4,218 - - Mutual funds 824 824 - - Equity investments $ 5,143 $ 5,143 $ - $ - Corporate debt $ 9,657 $ - $ 9,657 $ - Available-for-sale investments $ 9,657 $ - $ 9,657 $ - As of June 30, 2018 Fair Value Quoted Prices in Active Markets (Level 1) Observable Inputs (Level 2) Unobservable Inputs (Level 3) Cash $ 3,777 $ 3,777 $ - $ - Money market funds 28,215 28,215 - - Commercial paper 1,000 - 1,000 - Cash and cash equivalents $ 32,992 $ 31,992 $ 1,000 $ - Common stock warrants $ 283 $ 283 $ - $ - Common stock 5,537 5,537 - - Mutual funds 809 809 - - Equity investments $ 6,629 $ 6,629 $ - $ - Commercial paper $ 3,294 $ - $ 3,294 $ - Corporate debt 10,087 - 10,087 - Available-for-sale investments $ 13,381 $ - $ 13,381 $ - |
Recent Accounting Guidance
Recent Accounting Guidance | 3 Months Ended |
Sep. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Guidance | 2. Recent Accounting Guidance Recently Issued and Adopted Accounting Guidance In January 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU No. 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities , as amended by ASU No. 2018-03, Financial Instruments-Overall: Technical Corrections and Improvements , issued in February 2018 on the recognition and measurement of financial instruments. The new guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The new guidance changes the current accounting guidance related to (i) the classification and measurement of certain equity investments, (ii) the presentation of changes in the fair value of financial liabilities measured under the fair value option that are due to instrument-specific credit risk, and (iii) certain disclosures associated with the fair value of financial instruments. Additionally, there is no longer a requirement to assess equity securities for impairment since such securities are now measured at fair value through net income. We utilized a modified retrospective approach to adopt the new guidance effective July 1, 2018. The impact related to the change in accounting for equity securities for the fiscal year ended June 30, 2018 was $318 of net unrealized investment gains, net of income tax, reclassified from AOCI to retained earnings. Recent Accounting Guidance Not Yet Adopted In August 2018, the FASB issued ASU No. 2018-13, “ Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 3. Discontinued Operations Content Delivery Business As noted above, on December 31, 2017, we completed the sale of the Content Delivery business and other related assets to Vecima pursuant to an Asset Purchase Agreement, dated as of October 13, 2017, between the Company and Vecima for a purchase price of $29,000 (subject to an adjustment for net working capital). The sale included our Content Delivery business assets and related liabilities in the United States, United Kingdom, and Germany, as well as the sale of all equity in our Japanese subsidiary. Gross proceeds of $29,812 from the sale were paid to us as follows: (1) $28,362 net cash payment during our fiscal year ended June 30, 2018 (including an $812 adjustment for surplus net working capital transferred to Vecima as defined in the CDN APA) and (2) $1,450 placed in escrow as security for the Company’s indemnification obligations to Vecima under the CDN APA, which amount will be released to the Company on or around December 31, 2018 (less any portion used to make indemnification payments to Vecima). Results associated with the Content Delivery business are classified within income from discontinued operations, net of income taxes, in the accompanying consolidated statements of operations. Operating expenses recorded in discontinued operations include costs incurred directly in support of the Content Delivery business. For the three months ended September 30, 2017, income from discontinued operations, net of income taxes related to the Content Delivery business was comprised of the following: Three Months Ended September 30, 2017 Revenue $ 7,870 Cost of sales 3,220 Gross margin 4,650 Operating expenses: Sales and marketing 2,144 Research and development 1,678 General and administrative 478 Total operating expenses 4,300 Operating income 350 Other expense, net (110 ) Income from discontinued operations before income taxes 240 Benefit for income taxes (128 ) Income from discontinued operations $ 368 Cash flow information relating to the Content Delivery business for the three months ended September 30, 2017 is as follows: Operating cash flow data: Depreciation and amortization $ 329 Share-based compensation 72 Recovery of provision for excess and obsolete inventories (23 ) Foreign currency exchange losses 110 Investing cash flow data: Capital expenditures (222 ) |
Investments
Investments | 3 Months Ended |
Sep. 30, 2018 | |
Investments [Abstract] | |
Investments | 4. Investments Fixed Maturity and Equity Securities Investments The following tables provide information relating to investments in fixed maturity and equity securities: September 30, 2018 Cost Unrealized Gains Unrealized Losses Fair Value Equity securities Common stock $ 4,217 $ 260 $ (259 ) $ 4,218 Common stock warrants 288 - (187 ) 101 Mutual funds 789 35 - 824 Total equity securities $ 5,294 $ 295 $ (446 ) $ 5,143 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Fixed maturity securities Corporate debt $ 12,225 $ - $ (2,568 ) $ 9,657 Total fixed maturity securities $ 12,225 $ - $ (2,568 ) $ 9,657 Fixed maturity debt securities are classified as “available for sale”, and as such, adjustments to fair value are recorded within other comprehensive income on the consolidated balance sheet as unrealized gains and losses. Upon our adoption of ASU 2016-01, effective July 1, 2018, changes in fair value of equity securities are recorded within the consolidated statement of operations as a net realized gain (loss) on investments. During the three months ended September 30, 2018, we recorded a $457 unrealized loss on investments within our consolidated statement of operations as a fair value adjustment to our equity securities investments. a $201 realized gain on the sale of debt and equity securities, as reported within our consolidated statement of operations. June 30, 2018 Cost Unrealized Gains Unrealized Losses Fair Value Equity securities Common stock $ 5,239 $ 491 $ (193 ) $ 5,537 Common stock warrants 288 - (5 ) 283 Mutual funds 789 20 - 809 Total equity securities $ 6,316 $ 511 $ (198 ) $ 6,629 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Fixed maturity securities Commercial paper $ 3,294 $ - $ - $ 3,294 Corporate debt 11,778 11 (1,702 ) 10,087 Total fixed maturity securities $ 15,072 $ 11 $ (1,702 ) $ 13,381 The amortized cost and fair value of fixed maturity securities available-for-sale as of September 30, 2018 are shown by contractual maturity in the table below. Actual maturities can differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Fair Value Fixed maturity securities Due after one year through three years $ 3,625 $ 1,476 Due after three years through five years 865 658 Due after five years through 10 years 7,735 7,523 Total fixed maturity securities $ 12,225 $ 9,657 |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 5. Income Taxes Components of Provision (Benefit) for Income Taxes The domestic and foreign components of loss from continuing operations before the (benefit) provision for income taxes are as follows: Three Months Ended September 30, 2018 2017 United States $ 42 $ (1,359 ) Foreign (43 ) (13 ) Loss from continuing operations $ (1 ) $ (1,372 ) The components of the (benefit) provision for income taxes are as follows: Three Months Ended September 30, 2018 2017 United States $ 2 $ 6 Foreign - - Provision for income taxes $ 2 $ 6 On December 22, 2017, President Donald J. Trump signed the Tax Cuts and Jobs Act (“TCJA”) that instituted fundamental changes to the taxation of U.S. corporations. Among the many changes instituted by TCJA, the following are most likely to impact our business: permanent reduction in the U.S. federal statutory tax rate for corporations from 35% to 21%; new restrictions on the deductibility of net operating losses generated in years beginning after December 22, 2017; additional limitations on certain business deductions such as interest expense and entertainment expenses; the creation of new regimes designed to tax the income of controlled foreign corporations (global intangible low-taxed income, or “GILTI”, and a base-erosion anti-abuse tax, or “BEAT”; and a possible new deduction for U.S. corporations on their foreign earnings (foreign-derived intangible income, or “FDII”); and imposing a one-time repatriation tax on deemed repatriated earnings and profits of U.S.-owned foreign subsidiaries (Transition Tax). In conjunction with TCJA, on December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118), which provides guidance on accounting for the tax effects of TCJA. SAB 118 allows for recording certain effects of the TCJA as “provisional” during a one-year measurement period, which for the Company will end in the second quarter of fiscal 2019. We are continuing to evaluate the impact of TCJA in light of the guidance that the U.S. Treasury and various state taxing authorities are releasing. At this time, we do not believe there will be any material changes to the amounts previously provided for the impact of the TCJA. We expect to conclude our analysis during the second quarter of fiscal 2019. As a result of the TCJA, we are reassessing our intentions related to our indefinite reinvestment assertion as part of our provisional estimates. Should we decide to no longer indefinitely reinvest such foreign earnings outside the U.S., we would have to adjust the income tax provision in the period such determination is made. We currently have an immaterial amount of cash available for repatriation of less than $35. After the TCJA, there should be no federal income taxes that would be due upon repatriation. Any other impact, such as withholding tax, states taxes, or foreign exchange rate changes, should be immaterial based on the amount of cash held overseas. Net Operating Losses As of June 30, 2018, we had U.S. federal net operating loss carryforwards (“NOLs”) of approximately $56,113 for income tax purposes, of which none expire in fiscal year 2019, and the remainder expire at various dates through fiscal year 2037. We recently completed an evaluation of the potential effect of Section 382 of the Internal Revenue Code (the “IRC”) on our ability to utilize these net operating losses. The study concluded that we have not had an ownership change for the period from July 22, 1993 to June 30, 2018; therefore, the NOLs will not be subject to limitation under Section 382. If we experience an ownership change as defined in Section 382 of the IRC, our ability to use these NOLs will be substantially limited, which could therefore significantly impair the value of that asset. We have taken steps to protect the value of our NOLs with a “Tax Asset Preservation Plan” which is described more fully in our Annual Report on Form 10-K for the period ended June 30, 2018. As of June 30, 2018, we had state NOLs of $33,240. The state NOLs expire according to the rules of each state and expiration will occur between fiscal year 2019 and fiscal year 2037. Deferred Tax Assets and Related Valuation Allowances In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. In determining whether or not a valuation allowance for tax assets is needed, we evaluate all available evidence, both positive and negative, including: trends in operating income or losses; currently available information about future years; future reversals of existing taxable temporary differences; future taxable income exclusive of reversing temporary differences and carryforwards; taxable income in prior carryback years if carryback is permitted under the tax law; and tax planning strategies that would accelerate taxable amounts to utilize expiring carryforwards, change the character of taxable and deductible amounts from ordinary income or loss to capital gain or loss, or switch from tax-exempt to taxable investments. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. As of September 30, 2018, we maintained a full valuation allowance on our net deferred tax assets in all jurisdictions, with the exception of the $975 alternative minimum tax credit carryforward that is now considered refundable after the enactment of the TCJA. We do not have sufficient evidence of future income to conclude that it is more likely than not the Company will realize its entire deferred tax inventory in any of its jurisdictions (United States, Germany, United Kingdom, and Australia). Therefore, we have recognized a full valuation allowance on the Company’s deferred tax inventory. We reevaluate our conclusions quarterly regarding the valuation allowance and will make appropriate adjustments as necessary in the period in which significant changes occur. Research and Development Tax Credits During the year ended June 30, 2017, we applied for both a U.S. federal and state of Georgia research and development tax credit in the amounts of $719 and $675, respectively, for our fiscal year ending June 30, 2016. For U.S. federal tax purposes, the credit cannot be utilized immediately but will carryforward for a period of 20 years. As we do not expect to be able to realize the benefit of the U.S. federal tax credit carryforward before its expiration, we maintain a full valuation allowance on this item. For the state of Georgia tax credit, we have recorded the credit within both other current assets and other long-term assets with an offset in both accrued expenses and other long-term liabilities in our consolidated balance sheets as of September 30 and June 30, 2018, respectively. As future payroll tax withholdings of our Georgia-based employees become due, we are able to offset the withholding amount dollar-for-dollar against the credit. As a result, as the credit is claimed, we will (1) reduce other current assets and offset the payroll tax liability and (2) reduce accrued expenses and recognize a reduction of operating expenses. During the three months ended September 30, 2018 we received $173 of proceeds from prior utilization of our State tax credits. Subsequent to the September 30, 2018 and prior to the filing date of this Form 10Q, we received an additional $376 of proceeds from prior utilization of our State tax credits. Unrecognized Tax Benefits We have evaluated our unrecognized tax benefits and determined that there has not been a material change in the amount of such benefits for the three months ended September 30, 2018. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Sep. 30, 2018 | |
Share-based Compensation [Abstract] | |
Share-Based Compensation | 6. Share-Based Compensation As of September 30, 2018, we had share-based compensation plans which are described in Note 9, “Share-Based Compensation,” to the consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2018. We recognize stock compensation expense over the requisite service period of the individual grantees, which generally equals the vesting period. As of September 30, 2018, we had 15,000 stock options outstanding and 60,000 restricted shares outstanding. During the three months ended September 30, 2018, the Company did not grant any equity compensation and no options or restricted stock awards vested, forfeited or canceled. During the three months ended September 30, 2018 and 2017, we recorded $59 and $149, respectively, of share-based compensation within general and administrative expenses of our continuing operations. |
Pensions
Pensions | 3 Months Ended |
Sep. 30, 2018 | |
Defined Benefit Plan [Abstract] | |
Pensions | 7. Pensions Defined Benefit Plans The following table provides the components of net periodic pension cost of our German defined benefit pension plans recognized in earnings for the three months ended September 30, 2018 and 2017: Three Months Ended September 30, 2018 2017 Net Periodic Benefit Cost Interest cost $ 15 $ 18 Expected return on plan assets (1 ) (2 ) Recognized actuarial loss 16 16 Net periodic benefit cost $ 30 $ 32 |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 3 Months Ended |
Sep. 30, 2018 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Accounts Payable and Accrued Expenses | 8. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consist of the following: September 30, 2018 June 30, 2018 Accounts payable, trade $ 435 $ 582 Accrued payroll, vacation and other employee expenses 24 31 Unrecognized income from research and development tax credits 132 130 Accrued income taxes 87 87 Dividends payable 1 1 Other accrued expenses 265 458 $ 944 $ 1,289 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | 9. Accumulated Other Comprehensive Loss The following table summarizes the changes in accumulated other comprehensive loss by component, net of taxes, for the three months ended September 30, 2018: Pension and Postretirement Benefit Plans Currency Translation Adjustments Unrealized Gain / (Loss) on Investments Total Balance at June 30, 2018 $ (1,372 ) $ 432 $ (1,373 ) $ (2,313 ) Adoption of ASU No. 2016-01 - - (318 ) (318 ) Other comprehensive income 10 13 (877 ) (854 ) Amounts reclassified from accumulated 16 - - 16 Net current period other 26 13 (1,195 ) (1,156 ) Balance at September 30, 2018 $ (1,346 ) $ 445 $ (2,568 ) $ (3,469 ) |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. Commitments and Contingencies Severance Arrangements Pursuant to the terms of the employment agreements with the chief financial officer and another employee, employment may be terminated by either the respective employee or us at any time. In the event an agreement is terminated by us without cause, or in certain circumstances terminates constructively or expires, the terminated employee will receive severance compensation for a period from six to 12 months, depending on the employee, and bonus severance. Additionally, if terminated, our chief financial officer will be entitled to COBRA continuation coverage under the Company’s hospitalization and medical plan for the 12-month period following termination. At September 30, 2018, the maximum contingent liability under these agreements was $491. |
Overview of Business and Basi_2
Overview of Business and Basis of Presentation (Policies) | 3 Months Ended |
Sep. 30, 2018 | |
Overview Of Business [Abstract] | |
Smaller Reporting Company | Smaller Reporting Company We meet the SEC’s definition of a “Smaller Reporting Company,” and therefore qualify for the SEC’s reduced disclosure requirements for smaller reporting companies. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Investments in Debt and Equity Securities | Investments in Debt and Equity Securities We determine the appropriate classification of investments in debt securities at the time of purchase and reevaluate such determinations at each balance sheet date. Debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity. Held-to-maturity securities are recorded as either short term or long term in the consolidated balance sheet based on contractual maturity date and are stated at amortized cost. Marketable securities that are bought and held principally for the purpose of selling them in the near term are classified as trading securities and are reported at fair value, with unrealized gains and losses recognized in earnings. Debt securities not classified as held-to-maturity or as trading are classified as available-for-sale, and are carried at fair market value, with the unrealized gains and losses, net of tax, included in the determination of comprehensive income and reported in stockholders’ equity. We adopted Accounting Standards Update (“ASU”) No. 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), as amended by ASU 2018-03, Financial Instruments-Overall: Technical Corrections and Improvements , on July 1, 2018 (see Note 2). Upon adoption of ASU 2016-01 on July 1, 2018, we are no longer required to determine the classification of our equity securities and there will no longer be a requirement to assess equity securities for impairment since such securities will be measured at fair value through net income. Premiums and discounts on fixed maturity securities are amortized using the effective interest method. Prepayment assumptions are reviewed periodically and adjusted to reflect actual prepayments and changes in expectations. Dividends on equity securities are recognized when declared. When the Company sells a security, the difference between the sale proceeds and amortized cost (determined based on specific identification) is reported as a realized investment gain or loss. When a decline in the value of a specific investment is considered to be other-than-temporary at the balance sheet date, a provision for impairment is charged to earnings (included in realized gains (losses) on investments) and the cost basis of that investment is reduced. If the Company can assert that it does not intend to sell an impaired fixed maturity security and it is not more likely than not that it will have to sell the security before recovery of its amortized cost basis, then the other-than-temporary impairment is separated into two components: (i) the amount related to credit losses (recorded in earnings) and (ii) the amount related to all other factors (recorded in accumulated other comprehensive income, or “AOCI”). The credit-related portion of an “other-than-temporary” impairment is measured by comparing a security’s amortized cost to the present value of its current expected cash flows discounted at its effective yield prior to the impairment charge. If the Company intends to sell an impaired security, or it is more likely than not that it will be required to sell the security before recovery, an impairment charge to earnings is recorded to reduce the amortized cost of that security to fair value. In some cases, our debt investments may provide for a portion of the interest payable to be payment-in-kind (“PIK”) interest. To the extent interest is PIK, it is payable through the increase of the principal amount of the loan by the amount of the interest due on the then-outstanding principal amount of the loan. |
Advances Receivable | Advances Receivable During the three months ended September 30, 2018, we provided a $2,000 cash advance to an aviation business to fund the deposit required for the recipient’s aircraft purchases for up to six months, in exchange for paying us an upfront fee and a guaranty of the full repayment obligation from the principal of the third-party business. The fee is earned over the six-month advance period and is reported as part of other interest income within the statement of operations. Each quarter, we review the carrying value of this cash advance, and determine if an impairment reserve is necessary. As of September 30, 2018, our advance receivable was not impaired. |
Basic and Diluted Earnings (Loss) per Share | Basic and Diluted Earnings (Loss) per Share Basic earnings (loss) per share is computed by dividing income (loss) by the weighted average number of common shares outstanding during each year. Diluted earnings (loss) per share is computed by dividing income (loss) by the weighted average number of common shares outstanding including dilutive common share equivalents. Under the treasury stock method, incremental shares representing the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued are included in the computation. Due to the loss from continuing operations for both periods presented, weighted average common share equivalents of 31,665 and 218,719 for the three months ended September 30, 2018 and 2017, respectively, were excluded from the calculation as their effect would have been anti-dilutive. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly fashion between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be either recorded or disclosed at fair value, we consider the most advantageous market in which it would transact and assumptions that market participants would use when pricing the asset or liability. ASC Topic 820, Fair Value Measurements and Disclosures • Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2 Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and • Level 3 Assets or liabilities for which fair value is based on valuation models with significant unobservable pricing inputs and which include the use of management estimates. Our investment portfolio consists of money market funds, domestic and international commercial paper, equity securities and corporate debt. All highly liquid investments with an original maturity of three months or less when purchased are considered to be cash equivalents. All cash equivalents are carried at cost less any unamortized premium or discount, which approximates fair value. All investments with original maturities of more than three months are classified as available-for-sale, trading or held-to-maturity investments. Our marketable securities, other than warrants and equity securities, are classified as available-for-sale and are reported at fair value with unrealized gains and losses, net of tax, reported in stockholders’ equity as a component of accumulated other comprehensive income or loss. Interest on securities is recorded in interest income. Any realized gains or losses are reported in the accompanying consolidated statements of operations. Equity securities are reported at fair value with unrealized gains and losses resulting from adjustments to fair value reported within our consolidated statements of operations. We provide fair value measurement disclosures of our securities in accordance with one of the three levels of fair value measurement. We have no financial assets that are measured on a recurring basis that fall within Level 3 of the fair value hierarchy. Our financial assets that are measured at fair value on a recurring basis as of September 30, 2018 and June 30, 2018 are as follows: As of September 30, 2018 Fair Value Quoted Prices in Active Markets (Level 1) Observable Inputs (Level 2) Unobservable Inputs (Level 3) Cash $ 4,194 $ 4,194 $ - $ - Money market funds 30,664 30,664 - - Cash and cash equivalents $ 34,858 $ 34,858 $ - $ - Common stock warrants $ 101 $ 101 $ - Common stock 4,218 4,218 - - Mutual funds 824 824 - - Equity investments $ 5,143 $ 5,143 $ - $ - Corporate debt $ 9,657 $ - $ 9,657 $ - Available-for-sale investments $ 9,657 $ - $ 9,657 $ - As of June 30, 2018 Fair Value Quoted Prices in Active Markets (Level 1) Observable Inputs (Level 2) Unobservable Inputs (Level 3) Cash $ 3,777 $ 3,777 $ - $ - Money market funds 28,215 28,215 - - Commercial paper 1,000 - 1,000 - Cash and cash equivalents $ 32,992 $ 31,992 $ 1,000 $ - Common stock warrants $ 283 $ 283 $ - $ - Common stock 5,537 5,537 - - Mutual funds 809 809 - - Equity investments $ 6,629 $ 6,629 $ - $ - Commercial paper $ 3,294 $ - $ 3,294 $ - Corporate debt 10,087 - 10,087 - Available-for-sale investments $ 13,381 $ - $ 13,381 $ - |
Overview of Business and Basi_3
Overview of Business and Basis of Presentation (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Overview Of Business [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | Our financial assets that are measured at fair value on a recurring basis as of September 30, 2018 and June 30, 2018 are as follows: As of September 30, 2018 Fair Value Quoted Prices in Active Markets (Level 1) Observable Inputs (Level 2) Unobservable Inputs (Level 3) Cash $ 4,194 $ 4,194 $ - $ - Money market funds 30,664 30,664 - - Cash and cash equivalents $ 34,858 $ 34,858 $ - $ - Common stock warrants $ 101 $ 101 $ - Common stock 4,218 4,218 - - Mutual funds 824 824 - - Equity investments $ 5,143 $ 5,143 $ - $ - Corporate debt $ 9,657 $ - $ 9,657 $ - Available-for-sale investments $ 9,657 $ - $ 9,657 $ - As of June 30, 2018 Fair Value Quoted Prices in Active Markets (Level 1) Observable Inputs (Level 2) Unobservable Inputs (Level 3) Cash $ 3,777 $ 3,777 $ - $ - Money market funds 28,215 28,215 - - Commercial paper 1,000 - 1,000 - Cash and cash equivalents $ 32,992 $ 31,992 $ 1,000 $ - Common stock warrants $ 283 $ 283 $ - $ - Common stock 5,537 5,537 - - Mutual funds 809 809 - - Equity investments $ 6,629 $ 6,629 $ - $ - Commercial paper $ 3,294 $ - $ 3,294 $ - Corporate debt 10,087 - 10,087 - Available-for-sale investments $ 13,381 $ - $ 13,381 $ - |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Disposal Groups, Including Discontinued Operations | For the three months ended September 30, 2017, income from discontinued operations, net of income taxes related to the Content Delivery business was comprised of the following: Three Months Ended September 30, 2017 Revenue $ 7,870 Cost of sales 3,220 Gross margin 4,650 Operating expenses: Sales and marketing 2,144 Research and development 1,678 General and administrative 478 Total operating expenses 4,300 Operating income 350 Other expense, net (110 ) Income from discontinued operations before income taxes 240 Benefit for income taxes (128 ) Income from discontinued operations $ 368 |
Content Delivery Business Segment [Member] | |
Disposal Groups, Including Discontinued Operations ,Statement of Cash Flows | Cash flow information relating to the Content Delivery business for the three months ended September 30, 2017 is as follows: Operating cash flow data: Depreciation and amortization $ 329 Share-based compensation 72 Recovery of provision for excess and obsolete inventories (23 ) Foreign currency exchange losses 110 Investing cash flow data: Capital expenditures (222 ) |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Investments [Abstract] | |
Summary of Available-For-Sale Securities | The following tables provide information relating to investments in fixed maturity and equity securities: September 30, 2018 Cost Unrealized Gains Unrealized Losses Fair Value Equity securities Common stock $ 4,217 $ 260 $ (259 ) $ 4,218 Common stock warrants 288 - (187 ) 101 Mutual funds 789 35 - 824 Total equity securities $ 5,294 $ 295 $ (446 ) $ 5,143 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Fixed maturity securities Corporate debt $ 12,225 $ - $ (2,568 ) $ 9,657 Total fixed maturity securities $ 12,225 $ - $ (2,568 ) $ 9,657 June 30, 2018 Cost Unrealized Gains Unrealized Losses Fair Value Equity securities Common stock $ 5,239 $ 491 $ (193 ) $ 5,537 Common stock warrants 288 - (5 ) 283 Mutual funds 789 20 - 809 Total equity securities $ 6,316 $ 511 $ (198 ) $ 6,629 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Fixed maturity securities Commercial paper $ 3,294 $ - $ - $ 3,294 Corporate debt 11,778 11 (1,702 ) 10,087 Total fixed maturity securities $ 15,072 $ 11 $ (1,702 ) $ 13,381 |
Disclosure Of Information Regarding Maturity Of Available For Sale Of Securities | The amortized cost and fair value of fixed maturity securities available-for-sale as of September 30, 2018 are shown by contractual maturity in the table below. Actual maturities can differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Cost Fair Value Fixed maturity securities Due after one year through three years $ 3,625 $ 1,476 Due after three years through five years 865 658 Due after five years through 10 years 7,735 7,523 Total fixed maturity securities $ 12,225 $ 9,657 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The domestic and foreign components of loss from continuing operations before the (benefit) provision for income taxes are as follows: Three Months Ended September 30, 2018 2017 United States $ 42 $ (1,359 ) Foreign (43 ) (13 ) Loss from continuing operations $ (1 ) $ (1,372 ) |
Schedule of Components of Income Tax Expense (Benefit) | The components of the (benefit) provision for income taxes are as follows: Three Months Ended September 30, 2018 2017 United States $ 2 $ 6 Foreign - - Provision for income taxes $ 2 $ 6 |
Pensions (Tables)
Pensions (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Pensions and Other Postretirement Benefits [Abstract] | |
Components of net periodic pension cost of our German defined benefit pension plans recognized in earnings | The following table provides the components of net periodic pension cost of our German defined benefit pension plans recognized in earnings for the three months ended September 30, 2018 and 2017: Three Months Ended September 30, 2018 2017 Net Periodic Benefit Cost Interest cost $ 15 $ 18 Expected return on plan assets (1 ) (2 ) Recognized actuarial loss 16 16 Net periodic benefit cost $ 30 $ 32 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consist of the following: September 30, 2018 June 30, 2018 Accounts payable, trade $ 435 $ 582 Accrued payroll, vacation and other employee expenses 24 31 Unrecognized income from research and development tax credits 132 130 Accrued income taxes 87 87 Dividends payable 1 1 Other accrued expenses 265 458 $ 944 $ 1,289 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in accumulated other comprehensive loss by component, net of taxes, for the three months ended September 30, 2018: Pension and Postretirement Benefit Plans Currency Translation Adjustments Unrealized Gain / (Loss) on Investments Total Balance at June 30, 2018 $ (1,372 ) $ 432 $ (1,373 ) $ (2,313 ) Adoption of ASU No. 2016-01 - - (318 ) (318 ) Other comprehensive income 10 13 (877 ) (854 ) Amounts reclassified from accumulated 16 - - 16 Net current period other 26 13 (1,195 ) (1,156 ) Balance at September 30, 2018 $ (1,346 ) $ 445 $ (2,568 ) $ (3,469 ) |
Overview of Business and Basi_4
Overview of Business and Basis of Presentation (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 |
Equity investments [Member] | ||
Assets, Fair Value Disclosure | $ 5,143 | $ 6,629 |
Common Stock [Member] | ||
Assets, Fair Value Disclosure | 4,218 | 5,537 |
Common stock warrants [Member] | ||
Assets, Fair Value Disclosure | 101 | 283 |
Available-for-sale investments [Member] | ||
Assets, Fair Value Disclosure | 9,657 | 13,381 |
Cash and Cash Equivalents [Member] | ||
Assets, Fair Value Disclosure | 34,858 | 32,992 |
Mutual Fund [Member] | ||
Assets, Fair Value Disclosure | 824 | 809 |
Cash [Member] | ||
Assets, Fair Value Disclosure | 4,194 | 3,777 |
Money Market Funds [Member] | ||
Assets, Fair Value Disclosure | 30,664 | 28,215 |
Commercial Paper [Member] | ||
Assets, Fair Value Disclosure | 1,000 | |
Commercial Paper [Member] | Available-for-sale investments [Member] | ||
Assets, Fair Value Disclosure | 3,294 | |
Corporate debt [Member] | Available-for-sale investments [Member] | ||
Assets, Fair Value Disclosure | 9,657 | 10,087 |
Fair Value, Inputs, Level 1 [Member] | Equity investments [Member] | ||
Assets, Fair Value Disclosure | 5,143 | 6,629 |
Fair Value, Inputs, Level 1 [Member] | Common Stock [Member] | ||
Assets, Fair Value Disclosure | 4,218 | 5,537 |
Fair Value, Inputs, Level 1 [Member] | Common stock warrants [Member] | ||
Assets, Fair Value Disclosure | 101 | 283 |
Fair Value, Inputs, Level 1 [Member] | Available-for-sale investments [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents [Member] | ||
Assets, Fair Value Disclosure | 34,858 | 31,992 |
Fair Value, Inputs, Level 1 [Member] | Mutual Fund [Member] | ||
Assets, Fair Value Disclosure | 824 | 809 |
Fair Value, Inputs, Level 1 [Member] | Cash [Member] | ||
Assets, Fair Value Disclosure | 4,194 | 3,777 |
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | ||
Assets, Fair Value Disclosure | 30,664 | 28,215 |
Fair Value, Inputs, Level 1 [Member] | Commercial Paper [Member] | ||
Assets, Fair Value Disclosure | 0 | |
Fair Value, Inputs, Level 1 [Member] | Commercial Paper [Member] | Available-for-sale investments [Member] | ||
Assets, Fair Value Disclosure | 0 | |
Fair Value, Inputs, Level 1 [Member] | Corporate debt [Member] | Available-for-sale investments [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Equity investments [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Common Stock [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Common stock warrants [Member] | ||
Assets, Fair Value Disclosure | 0 | |
Fair Value, Inputs, Level 2 [Member] | Available-for-sale investments [Member] | ||
Assets, Fair Value Disclosure | 9,657 | 13,381 |
Fair Value, Inputs, Level 2 [Member] | Cash and Cash Equivalents [Member] | ||
Assets, Fair Value Disclosure | 0 | 1,000 |
Fair Value, Inputs, Level 2 [Member] | Mutual Fund [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Cash [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Commercial Paper [Member] | ||
Assets, Fair Value Disclosure | 1,000 | |
Fair Value, Inputs, Level 2 [Member] | Commercial Paper [Member] | Available-for-sale investments [Member] | ||
Assets, Fair Value Disclosure | 3,294 | |
Fair Value, Inputs, Level 2 [Member] | Corporate debt [Member] | Available-for-sale investments [Member] | ||
Assets, Fair Value Disclosure | 9,657 | 10,087 |
Fair Value, Inputs, Level 3 [Member] | Equity investments [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Common Stock [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Common stock warrants [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Available-for-sale investments [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Cash and Cash Equivalents [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Mutual Fund [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Cash [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Money Market Funds [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Commercial Paper [Member] | ||
Assets, Fair Value Disclosure | 0 | |
Fair Value, Inputs, Level 3 [Member] | Commercial Paper [Member] | Available-for-sale investments [Member] | ||
Assets, Fair Value Disclosure | 0 | |
Fair Value, Inputs, Level 3 [Member] | Corporate debt [Member] | Available-for-sale investments [Member] | ||
Assets, Fair Value Disclosure | $ 0 | $ 0 |
Overview of Business and Basi_5
Overview of Business and Basis of Presentation (Details Textual) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 31,665 | 218,719 |
Payments to Acquire Cash Advance Receivable | $ 2,000 | $ 0 |
Recent Accounting Guidance (Det
Recent Accounting Guidance (Details Textual) $ in Thousands | Jun. 30, 2018USD ($) |
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 318 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Operating expenses: | ||
Income from discontinued operations | $ 0 | $ 368 |
Content Delivery Business Segment [Member] | ||
Revenue | 7,870 | |
Cost of sales | 3,220 | |
Gross margin | 4,650 | |
Operating expenses: | ||
Sales and marketing | 2,144 | |
Research and development | 1,678 | |
General and administrative | 478 | |
Total operating expenses | 4,300 | |
Operating income | 350 | |
Other expense, net | (110) | |
Income from discontinued operations before income taxes | 240 | |
Benefit for income taxes | (128) | |
Income from discontinued operations | $ 368 |
Discontinued Operations (Deta_2
Discontinued Operations (Details 1) - Content Delivery Business Segment [Member] $ in Thousands | 3 Months Ended |
Sep. 30, 2017USD ($) | |
Operating cash flow data: | |
Depreciation and amortization | $ 329 |
Share-based compensation | 72 |
Recovery of provision for excess and obsolete inventories | (23) |
Foreign currency exchange losses | 110 |
Investing cash flow data: | |
Capital expenditures | $ (222) |
Discontinued Operations (Deta_3
Discontinued Operations (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Sep. 30, 2018 | Oct. 13, 2017 | |
Business Combination Contingent Consideration out of content delivery business Current | $ 1,450 | $ 1,450 | |
Content Delivery Segment [Member] | |||
Disposal Group, Including Discontinued Operation, Consideration | 29,812 | $ 29,000 | |
Proceeds from Divestiture of Businesses | 28,362 | ||
Business Combination Contingent Consideration out of content delivery business Current | 1,450 | ||
Disposal Group, Including Discontinued Operation, Consideration Adjustment for Working Capital | $ 812 |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Jun. 30, 2018 | |
Available-for-sale Debt Securities, Amortized Cost | $ 12,225 | $ 15,072 |
Available-for-sale Equity Securities, Cost | 5,294 | 6,316 |
Available-for-sale Debt Securities, Unrealized Gains | 0 | 11 |
Available-for-sale Equity Securities, Unrealized Gains | 295 | 511 |
Available-for-sale Debt Securities, Unrealized Losses | (2,568) | (1,702) |
Available-for-sale Equity Securities, Unrealized Losses | (446) | (198) |
Available-for-sale Debt Securities, Fair Value | 9,657 | 13,381 |
Available-for-sale Equity Securities, Fair Value | 5,143 | 6,629 |
Common Stock [Member] | ||
Available-for-sale Equity Securities, Cost | 4,217 | 5,239 |
Available-for-sale Equity Securities, Unrealized Gains | 260 | 491 |
Available-for-sale Equity Securities, Unrealized Losses | (259) | (193) |
Available-for-sale Equity Securities, Fair Value | 4,218 | 5,537 |
Common stock warrants [Member] | ||
Available-for-sale Equity Securities, Cost | 288 | 288 |
Available-for-sale Equity Securities, Unrealized Gains | 0 | 0 |
Available-for-sale Equity Securities, Unrealized Losses | (187) | (5) |
Available-for-sale Equity Securities, Fair Value | 101 | 283 |
Commercial Paper [Member] | ||
Available-for-sale Debt Securities, Amortized Cost | 3,294 | |
Available-for-sale Debt Securities, Unrealized Gains | 0 | |
Available-for-sale Debt Securities, Unrealized Losses | 0 | |
Available-for-sale Debt Securities, Fair Value | 3,294 | |
Corporate Debt Securities [Member] | ||
Available-for-sale Debt Securities, Amortized Cost | 12,225 | 11,778 |
Available-for-sale Debt Securities, Unrealized Gains | 0 | 11 |
Available-for-sale Debt Securities, Unrealized Losses | (2,568) | (1,702) |
Available-for-sale Debt Securities, Fair Value | 9,657 | 10,087 |
Mutual Fund [Member] | ||
Available-for-sale Equity Securities, Cost | 789 | 789 |
Available-for-sale Equity Securities, Unrealized Gains | 35 | 20 |
Available-for-sale Equity Securities, Unrealized Losses | 0 | 0 |
Available-for-sale Equity Securities, Fair Value | $ 824 | $ 809 |
Investments (Details 1)
Investments (Details 1) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 |
Fixed maturity securities Due after one year through three years Amortized Cost | $ 3,625 | |
Fixed maturity securities Due after three years through five years Amortized Cost | 865 | |
Fixed maturity securities Due after five years through 10 years Amortized Cost | 7,735 | |
Fixed maturity securities Total fixed maturity securities Amortized Cost | 12,225 | $ 15,072 |
Fixed maturity securities Due after one year through three years Fair Value | 1,476 | |
Fixed maturity securities Due after three years through five years Fair Value | 658 | |
Fixed maturity securities Due after five years through 10 years Fair Value | 7,523 | |
Fixed maturity securities Total fixed maturity securities Fair Value | $ 9,657 | $ 13,381 |
Investments (Details Textual)
Investments (Details Textual) $ in Thousands | 3 Months Ended |
Sep. 30, 2018USD ($) | |
Unrealized Gain (Loss) on Investments | $ 457 |
Debt and Equity Securities, Realized Gain (Loss) | $ 201 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
United States | $ 42 | $ (1,359) |
Foreign | (43) | (13) |
Loss from continuing operations | $ (1) | $ (1,372) |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
United States | $ 2 | $ 6 |
Foreign | 0 | 0 |
Provision for income taxes | $ 2 | $ 6 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Jun. 30, 2018 | |
Operating Loss Carryforwards [Line Items] | ||
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $ 56,113 | |
Tax Credit Carryforward, Expiration Period | 20 years | |
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | $ 975 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% |
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | $ 35 | |
Income Tax Credits and Adjustments | 173 | |
Additional Income Tax Credits and Adjustments | $ 376 | |
Federal [Member] | Research and Development Tax Credit [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Effective Income Tax Rate Reconciliation, Tax Credit, Research, Amount | $ 719 | |
State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating Loss Carryforwards | 33,240 | |
State and Local Jurisdiction [Member] | Research and Development Tax Credit [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Effective Income Tax Rate Reconciliation, Tax Credit, Research, Amount | $ 675 |
Share-Based Compensation (Detai
Share-Based Compensation (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Options, outstanding (in shares) | 15,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 60,000 | |
Share Based Compensation Within General and Administrative Expenses | $ 59 | $ 149 |
Pensions (Details)
Pensions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Net Periodic Benefit Cost | ||
Interest cost | $ 15 | $ 18 |
Expected return on plan assets | (1) | (2) |
Recognized actuarial loss | 16 | 16 |
Net periodic benefit cost | $ 30 | $ 32 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jun. 30, 2018 |
Accounts payable, trade | $ 435 | $ 582 |
Accrued payroll, vacation and other employee expenses | 24 | 31 |
Unrecognized income from research and development tax credits | 132 | 130 |
Accrued income taxes | 87 | 87 |
Dividends payable | 1 | 1 |
Other accrued expenses | 265 | 458 |
Accounts payable and accrued expenses, Total | $ 944 | $ 1,289 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2018USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance at June 30, 2018 | $ (2,313) |
Adoption of ASU No. 2016-01 | (318) |
Other comprehensive income before reclassifications | (854) |
Amounts reclassified from accumulated other comprehensive income (loss) | 16 |
Net current period other comprehensive income (loss) | (1,156) |
Balance at September 30, 2018 | (3,469) |
Unrealized Gain / (Loss) on Investments [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance at June 30, 2018 | (1,373) |
Adoption of ASU No. 2016-01 | (318) |
Other comprehensive income before reclassifications | (877) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 |
Net current period other comprehensive income (loss) | (1,195) |
Balance at September 30, 2018 | (2,568) |
Pension and Postretirement Benefit Plans [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance at June 30, 2018 | (1,372) |
Adoption of ASU No. 2016-01 | 0 |
Other comprehensive income before reclassifications | 10 |
Amounts reclassified from accumulated other comprehensive income (loss) | 16 |
Net current period other comprehensive income (loss) | 26 |
Balance at September 30, 2018 | (1,346) |
Currency Translation Adjustments [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance at June 30, 2018 | 432 |
Adoption of ASU No. 2016-01 | 0 |
Other comprehensive income before reclassifications | 13 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 |
Net current period other comprehensive income (loss) | 13 |
Balance at September 30, 2018 | $ 445 |
Commitments and Contingencies (
Commitments and Contingencies (Details Textual) $ in Thousands | 3 Months Ended |
Sep. 30, 2018USD ($) | |
Loss Contingencies [Line Items] | |
Contingent Liability for Employee Severance Payments | $ 491 |
Minimum [Member] | |
Loss Contingencies [Line Items] | |
Terminated Employees Severance Compensation Period | 6 months |
Maximum [Member] | |
Loss Contingencies [Line Items] | |
Terminated Employees Severance Compensation Period | 12 months |