| Significant Accounting Policies [Text Block] | NOTE 2. MAM Software Group, Inc. is a leading provider of integrated information management solutions and services and a leading provider of cloud-based software solutions for the automotive aftermarket sector. The Company conducts its businesses through wholly-owned subsidiaries with operations in Europe and North America. MAM Software Ltd. (“MAM Ltd.”) is based in Tankersley, Barnsley, United Kingdom (“UK”), Origin Software Solutions, Ltd. (“Origin”) is based in the UK (MAM Ltd. and Origin are collectively referred to as “MAM UK”), and MAM Software, Inc. (“MAM NA”) is based in the US in Blue Bell, Pennsylvania. Principles of Consolidation The condensed consolidated financial statements of the Company include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements. Concentrations of Credit Risk The Company has no significant off-balance-sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements. Cash and Cash Equivalents In the US, the Company maintains cash balances at financial institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. At times deposits held with financial institutions in the US may $250,000 In the UK, the Company maintains cash balances at financial institutions that are insured by the Financial Services Compensation Scheme (“FSCS”) up to 75,000GBP. At times deposits held with financial institutions in the UK may 75,000GBP The Company maintains its cash accounts at financial institutions which it believes to be credit worthy. The Company considers all highly liquid debt instruments purchased with a maturity of three Customers The Company performs periodic evaluations of its customers and maintains allowances for potential credit losses as deemed necessary. The Company generally does not require collateral to secure its accounts receivable. Credit risk is managed by discontinuing sales to customers who are delinquent. The Company estimates credit losses and returns based on management ’s evaluation of historical experience and current industry trends. Although the Company expects to collect amounts due, actual collections may No 10% ’s accounts receivable at March 31, 2017 June 30, 2016. No 10% three nine March 31, 2017 2016. Segment Reporting The Company operates in one Though the Company has two 280 10 50, Segment Reporting, one 1. The products and services are software and professional services 2. The products are produced through professional services 3. The customers for these products are primarily for the automotive aftermarket 4. The methods used to distribute these products are via software that the customer can host locally or that the Company will host; and 5. They both operate in a non-regulatory environment Geographic Concentrations The Company conducts business in the US, the UK and Ireland (UK and Ireland are collectively referred to as the “UK Market”) and Canada. For customers headquartered in their respective countries, the Company derived approximately 62% revenues from the UK, 36% 1% 1% three March 31, 2017, 68% 30% 1% 1% three March 31, 2016. The Company derived approximately 63% revenues from the UK, 35% 1% 1% nine March 31, 2017, 70% 28% 1% 1% nine March 31, 2016. At March 31, 2017, 74% 26% June 30, 2016, 79% 21% Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the US 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 condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates made by the Company’s management include, but are not limited to, the collectability of accounts receivable, the realizability of inventories, the recoverability of goodwill and other long-lived assets, valuation of deferred tax assets and liabilities and the estimated fair value of stock options, warrants and shares issued for compensation and non-cash consideration. Actual results could materially differ from those estimates. Fair Value of Financial Instruments The Company ’s financial instruments consist principally of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and debt. Financial assets and liabilities that are remeasured and reported at fair value at each reporting period are classified and disclosed in one three • Level 1 • Level 2 1 • Level 3 Determining into which category within the hierarchy an asset or liability may Inventories Inventories are stated at the lower of cost or current estimated market value. Cost is determined using the first first ’s estimated forecast of product demand and production requirements. Once established, write-downs of inventories are considered permanent adjustments to the cost basis of the obsolete or excess inventories. Property and Equipment Property and equipment are stated at cost, and are being depreciated using the straight-line method over the estimated useful lives of the related assets, ranging from three five 36,000 $84,000 three March 31, 2017 2016, $115,000 $234,000 nine March 31, 2017 2016, Software Development Costs Costs incurred to develop computer software products to be sold or otherwise marketed are charged to expense until technological feasibility of the product has been established. Once technological feasibility has been established, computer software development costs (consisting primarily of internal labor costs) are capitalized and reported at the lower of amortized cost or estimated realizable value. Purchased software development cost is recorded at its estimated fair market value. When a product is ready for general release, its capitalized costs are amortized on a product-by-product basis. The annual amortization is the greater of the amounts of: the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product; and, the straight-line method over the remaining estimated economic life (a period of three If the future market viability of a software product is less than anticipated, impairment of the related unamortized development costs could occur, which could significantly impact the Company’s results of operations. Amortization expense on software development costs was $65,000 $70,000 three March 31, 2017 2016, $199,000 $207,000 nine March 31, 2017 2016, Amortizable Intangible Assets Amortizable intangible assets consist of completed software technology, customer contracts/relationships, automotive data services, and acquired intellectual property, and are recorded at cost. Completed software technology and customer contracts/relationships are amortized using the straight-line method over their estimated useful lives of 9 10 20 10 $19,000 $24,000 three March 31, 2017 2016, $58,000 $73,000 nine March 31, 2017 2016, Goodwill Goodwill is not amortized, but rather is tested at least annually for impairment. Goodwill is subject to impairment reviews by applying a fair-value-based test at the reporting unit level, which generally represents operations one March 31, 2017, not For the nine March 31, 2017 2016, In thousands For the Nine Months Ended March 31, 2017 2016 Beginning Balance $ 8,363 $ 9,202 Acquisition of Origin - 202 Effect of exchange rate changes (401 ) (596 ) Ending Balance $ 7,962 8,808 Long-Lived Assets The Company ’s management assesses the recoverability of long-lived assets (other than goodwill discussed above) upon the occurrence of a triggering event by determining whether the carrying value of long-lived assets can be recovered through projected undiscounted future cash flows over their remaining lives. The amount of long-lived asset impairment, if any, is measured based on fair value and is charged to operations during the period in which long-lived asset impairment is determined by management. At March 31, 2017, no Issuance of Equity Instruments to Non-Employees All issuances of the Company ’s equity instruments to non-employees are measured based upon either the fair value of the equity instruments issued or the fair value of consideration received, depending on which option is more readily determinable. The majority of stock issuance for non-cash consideration received pertains to services rendered by consultants and others and has been valued at the fair value of the equity instruments on the dates issued. The measurement date for the fair value of the equity instruments issued is determined at the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached or (ii) the date at which the consultant or vendor ’s performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement. Assets acquired in exchange for the issuance of fully vested, non-forfeitable equity instruments should not be presented or classified as an offset to equity on the grantor’s balance sheet once the equity instrument is granted for accounting purposes. Stock-Based Compensation The Company accounts for stock-based compensation under the provisions of ASC No. 718, Compensation - Stock Compensation 718”). 718 Revenue Recognition Software license revenue is recognized when persuasive evidence of an arrangement exists, delivery of the product component has occurred, the fee is fixed and determinable, and collectability is reasonably assured. If any of these criteria are not met, revenue recognition is deferred until such time as all of the criteria are met. The Company accounts for delivered elements in accordance with the selling price when arrangements include multiple product components or other elements and vendor-specific objective evidence exists for the value of all undelivered elements. Revenues on undelivered elements are recognized once delivery is complete. In those instances, in which arrangements include significant customization, contractual milestones, acceptance criteria or other contingencies (which represents the majority of the Company ’s arrangements), the Company accounts for the arrangements using contract accounting, as follows: 1) When customer acceptance can be estimated, but reliable estimated costs to complete cannot be determined, expenditures are capitalized as work-in process and deferred until completion of the contract at which time the costs and revenues are recognized. 2) When customer acceptance cannot be estimated based on historical evidence, costs are expensed as incurred and revenue is recognized at the completion of the contract when customer acceptance is obtained. The Company records amounts collected from customers in excess of recognizable revenue as deferred revenue in the accompanying consolidated balance sheets. Revenues for maintenance agreements, software support, on-line services and information products are recognized ratably over the term of the service agreement. The Company recognizes revenue on a net basis, which excludes sales tax collected from customers and remitted to governmental authorities. Advertising Expense The Company expenses advertising costs as incurred. For the three March 31, 2017 2016, $79,000 $88,000, $351,000 $355,000 nine March 31, 2017 2016, Foreign Currency Management has determined that the functional currency of its subsidiaries is the local currency. Assets and liabilities of the UK subsidiaries are translated into US dollars at the quarter-end exchange rates. Income and expenses are translated at an average exchange rate for the period and the resulting translation gain adjustments are accumulated as a separate component of stockholders ’ equity. Foreign currency translation income (loss) totaled $41,000 $(252,000) three March 31, 2017 2016, $(631,000) $(1,068,000) nine March 31, 2017 2016, Foreign currency gains and losses from transactions denominated in currencies other than the respective local currencies are included in income. The Company had no material foreign currency transaction gains (losses) for all periods presented. Comprehensive Income Comprehensive income includes all changes in equity (net assets) during a period from non-owner sources. For the three nine March 31, 2017 2016, Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. Deferred taxation is provided in full in respect of timing differences between the treatment of certain items for taxation and accounting purposes. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company routinely evaluates any valuation allowance established to determine if facts and circumstances have changed that would lead to more positive evidence overcoming negative evidence that would cause the Company to release valuation allowance. The Company has determined as of March 31, 2017, no March 31, 2017 June 30, 2016, not three nine March 31, 2017 2016. Basic and Diluted Earnings Per Share Basic earnings per share (“BEPS”) is computed by dividing the net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share (“DEPS”) is computed giving effect to all dilutive potential common shares outstanding during the period. Dilutive potential common shares consist of incremental shares issuable upon the exercise of stock options and warrants using the “treasury stock” method. The computation of DEPS does not assume conversion, exercise or contingent exercise of securities that would have an anti-dilutive effect on earnings. For the three nine March 31, 2017, 91,636 91,013 three nine March 31, 2017, 503,951 three nine March 31, 2016, 343,969 344,464 three nine March 31, 2016, 691,505 The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computation for the three nine March 31, 2017 2016 For the Three Months Ended March 31, 2017 2016 Numerator: Net income $ 678 $ 596 Denominator: Basic weighted-average shares outstanding 11,739 11,426 Effect of dilutive securities 91 344 Diluted weighted-average shares outstanding 11,830 11,770 Basic earnings per common share $ 0.06 $ 0.05 Diluted earnings per common share $ 0.06 $ 0.05 For the Nine Months Ended March 31, 2017 2016 Numerator: Net income $ 2,141 $ 2,164 Denominator: Basic weighted-average shares outstanding 11,719 12,580 Effect of dilutive securities 91 345 Diluted weighted-average shares outstanding 11,810 12,925 Basic earnings per common share $ 0.18 $ 0.17 Diluted earnings per common share $ 0.18 $ 0.17 Reclassification Certain expenses were reclassified from depreciation and amortization to cost of revenues in the accompanying condensed consolidated statement of comprehensive income for the three nine March 31, 2016, The Company adopted Accounting Standards Update ("ASU") 2015 03, Imputation of Interest - Simplifying the Presentation of Debt Issuance Costs, July 1, 2016 June 30, 2016, $91,000 Recent Accounting Pronouncements In January 2017, ASU 2017 04, Intangibles-Goodwill and Other (Topic 350): two 2017 04 December 15, 2019, The Company does not expect the adoption of ASU 2017 04 In August 2016, 2016 15, Statement of Cash Flows (Topic 230), 2016 15 first 2018. 2016 15 2016 15 In March 2016, 2016 09, Improvements to Employee Share-Based Payment Accounting. December 15, 2016. 2016 09. 2016 09 In February 2016, 2016 02, Leases 12 December 15, 2019. 2016 02 In November 2015, 2015 17, Balance Sheet Classification of Deferred Taxes 2015 17 first 2018. 2015 17 may 2015 17 In April 2015, 2015 03, Imputation of Interest - Simplifying the Presentation of Debt Issuance Costs. 2015 03 July 1, 2016. In May 2014, 2014 09 , Revenue from Contracts with Customers 606), 2014 09 2014 09 first 2018. may In August 2014, 2014 15, Presentation of Financial Statements-Going Concern (1) (2) (3) (4) (5) (6) one December 15, 2016 2014 15 |
