Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Mar. 31, 2014 | 8-May-14 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'RAND WORLDWIDE INC | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--06-30 | ' |
Entity Common Stock, Shares Outstanding | ' | 54,466,296 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000852437 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
Current assets: | ' | ' |
Cash | $7,866,000 | $1,214,000 |
Accounts receivable, less allowance of $202,000 as of March 31, 2014 and $253,000 as of June 30, 2013 | 18,791,000 | 13,097,000 |
Income tax receivable | 1,050,000 | 851,000 |
Other receivables | 1,167,000 | 2,227,000 |
Inventory | 105,000 | 27,000 |
Prepaid expenses and other current assets | 1,960,000 | 2,520,000 |
Deferred tax assets | 112,000 | 141,000 |
Total current assets | 31,051,000 | 20,077,000 |
Property and equipment: | ' | ' |
Computer software and equipment | 8,048,000 | 8,432,000 |
Office furniture and equipment | 1,512,000 | 1,900,000 |
Leasehold improvements | 598,000 | 685,000 |
10,158,000 | 11,017,000 | |
Less accumulated depreciation and amortization | -7,542,000 | -8,379,000 |
2,616,000 | 2,638,000 | |
Deferred income taxes | 492,000 | 1,245,000 |
Other assets | 222,000 | 236,000 |
Total assets | 57,670,000 | 48,166,000 |
Goodwill | 17,640,000 | 17,700,000 |
Current liabilities: | ' | ' |
Accounts payable and accrued expenses | 12,582,000 | 7,458,000 |
Accrued compensation and related benefits | 1,707,000 | 1,453,000 |
Deferred revenue | 4,266,000 | 4,255,000 |
Obligations under capital leases | 229,000 | 294,000 |
Income taxes payable | 1,108,000 | ' |
Total current liabilities | 19,892,000 | 13,460,000 |
Long-term liabilities: | ' | ' |
Obligations under capital leases | 178,000 | 322,000 |
Other long-term liabilities | 893,000 | 1,184,000 |
Total liabilities | 20,963,000 | 14,966,000 |
Stockholders’ equity: | ' | ' |
Common stock, $0.01 par value; 80,000,000 shares authorized; issued and outstanding shares of 54,466,296 and 54,000,186 at March 31, 2014 and June 30, 2013, respectively | 545,000 | 540,000 |
Additional paid-in capital | 65,975,000 | 65,497,000 |
Accumulated deficit | -30,659,000 | -33,799,000 |
Accumulated other comprehensive income | 842,000 | 958,000 |
Total stockholders’ equity | 36,707,000 | 33,200,000 |
Total liabilities and stockholders’ equity | 57,670,000 | 48,166,000 |
Convertible Preferred Stock [Member] | ' | ' |
Stockholders’ equity: | ' | ' |
Convertible Preferred Stock, $0.01 par value; 1,300,537 shares authorized, 1,298,728 shares issued; 385,357 shares outstanding with an aggregate liquidation preference of $1,093,000 at March 31, 2014 and June 30, 2013, respectively (note 8) | 4,000 | 4,000 |
Customer Lists [Member] | ' | ' |
Property and equipment: | ' | ' |
Finite Lived Intangible Assets, Net | 3,192,000 | 3,586,000 |
Trade Names [Member] | ' | ' |
Property and equipment: | ' | ' |
Finite Lived Intangible Assets, Net | $2,457,000 | $2,684,000 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
Accounts receivable, allowance (in Dollars) | $202,000 | $253,000 |
Common stock, par value (in Dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 80,000,000 | 80,000,000 |
Common stock, shares issued | 54,466,296 | 54,000,186 |
Common stock, shares outstanding | 54,466,296 | 54,000,186 |
Convertible Preferred Stock [Member] | ' | ' |
Convertible Preferred Stock, par value (in Dollars per share) | $0.01 | $0.01 |
Convertible Preferred Stock, shares authorized | 1,300,537 | 1,300,537 |
Convertible Preferred Stock, shares issued | 1,298,728 | 1,298,728 |
Convertible Preferred Stock, shares outstanding | 385,357 | 385,357 |
Convertible Preferred Stock, aggregate liquidation preference (in Dollars) | 1,093,000 | 1,093,000 |
Customer Lists [Member] | ' | ' |
Finite Lived Intangible Assets, Accumulated Amortization (in Dollars) | 7,042,000 | 6,648,000 |
Trade Names [Member] | ' | ' |
Finite Lived Intangible Assets, Accumulated Amortization (in Dollars) | $1,474,000 | $1,247,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Revenues: | ' | ' | ' | ' |
Product sales | $12,622,000 | $12,042,000 | $35,585,000 | $31,661,000 |
Service revenue | 5,754,000 | 5,967,000 | 16,509,000 | 16,118,000 |
Commission revenue | 6,947,000 | 6,099,000 | 16,235,000 | 15,797,000 |
25,323,000 | 24,108,000 | 68,329,000 | 63,576,000 | |
Cost of revenue: | ' | ' | ' | ' |
Cost of product sales | 8,097,000 | 7,471,000 | 22,856,000 | 19,778,000 |
Cost of service revenue | 3,871,000 | 3,731,000 | 11,522,000 | 10,689,000 |
11,968,000 | 11,202,000 | 34,378,000 | 30,467,000 | |
Gross margin | 13,355,000 | 12,906,000 | 33,951,000 | 33,109,000 |
Other operating expenses: | ' | ' | ' | ' |
Selling, general and administrative | 9,197,000 | 9,441,000 | 26,706,000 | 26,602,000 |
Depreciation and amortization | 482,000 | 477,000 | 1,421,000 | 1,409,000 |
9,679,000 | 9,918,000 | 28,127,000 | 28,011,000 | |
Operating income | 3,676,000 | 2,988,000 | 5,824,000 | 5,098,000 |
Other expense, net | -157,000 | -196,000 | -376,000 | -319,000 |
Income from continuing operations before income taxes | 3,519,000 | 2,792,000 | 5,448,000 | 4,779,000 |
Income tax expense | -1,291,000 | -894,000 | -1,934,000 | -1,790,000 |
Income from continuing operations | 2,228,000 | 1,898,000 | 3,514,000 | 2,989,000 |
Loss on sale of discontinued operations, net of tax | ' | ' | -374,000 | ' |
Loss from discontinued operations, net of tax | ' | -123,000 | ' | -142,000 |
Net income | 2,228,000 | 1,775,000 | 3,140,000 | 2,847,000 |
Preferred stock dividends | -27,000 | -26,000 | -82,000 | -82,000 |
Net income available to common stockholders | $2,201,000 | $1,749,000 | $3,058,000 | $2,765,000 |
Earnings per common share attributable to common shareholders – basic: | ' | ' | ' | ' |
Income from continuing operations per common share (in Dollars per share) | $0.04 | $0.03 | $0.06 | $0.05 |
Loss from discontinued operations per common share (in Dollars per share) | ' | ' | ($0.01) | ' |
Earnings per common share attributable to common shareholders – basic (in Dollars per share) | $0.04 | $0.03 | $0.05 | $0.05 |
Earnings per common share attributable to common shareholders – diluted: | ' | ' | ' | ' |
Income from continuing operations per common share (in Dollars per share) | $0.04 | $0.03 | $0.06 | $0.05 |
Loss from discontinued operations per common share (in Dollars per share) | ' | ' | ($0.01) | ' |
Earnings per common share attributable to common shareholders – diluted (in Dollars per share) | $0.04 | $0.03 | $0.05 | $0.05 |
Weighted average shares used in computation - basic (in Shares) | 54,264,017 | 53,990,589 | 54,122,392 | 53,935,863 |
Weighted average shares used in computation - diluted (in Shares) | 57,237,327 | 56,489,059 | 56,934,949 | 56,349,932 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Net income | $2,228,000 | $1,775,000 | $3,140,000 | $2,847,000 |
Other comprehensive income, net of tax: | ' | ' | ' | ' |
Net change in cumulative foreign currency translation gain (loss) | -66,000 | 18,000 | -116,000 | 171,000 |
Comprehensive income | $2,162,000 | $1,793,000 | $3,024,000 | $3,018,000 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders’ Equity (Unaudited) (USD $) | Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance at July 1, 2013 at Jun. 30, 2013 | $4,000 | $540,000 | $65,497,000 | ($33,799,000) | $958,000 | $33,200,000 |
Balance at July 1, 2013 (in Shares) at Jun. 30, 2013 | 385,357 | 54,000,186 | ' | ' | ' | ' |
Vesting of stock options granted to employees | ' | ' | 238,000 | ' | ' | 238,000 |
Preferred stock dividends | ' | ' | -82,000 | ' | ' | -82,000 |
Issuance of common stock upon the exercise of stock options | ' | 5,000 | 322,000 | ' | ' | 327,000 |
Issuance of common stock upon the exercise of stock options (in Shares) | ' | 466,110 | ' | ' | ' | ' |
Foreign currency translation adjustment | ' | ' | ' | ' | -116,000 | -116,000 |
Net income for the nine months ended March 31, 2014 | ' | ' | ' | 3,140,000 | ' | 3,140,000 |
Balance at March 31, 2014 at Mar. 31, 2014 | $4,000 | $545,000 | $65,975,000 | ($30,659,000) | $842,000 | $36,707,000 |
Balance at March 31, 2014 (in Shares) at Mar. 31, 2014 | 385,357 | 54,466,296 | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Cash flows from operating activities | ' | ' |
Net income | $3,140,000 | $2,847,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Bad debt expense | 100,000 | 38,000 |
Depreciation and amortization | 1,421,000 | 1,445,000 |
Stock-based compensation | 238,000 | 189,000 |
Deferred income taxes | 782,000 | 1,468,000 |
Changes in operating assets and liabilities, net of those acquired: | ' | ' |
Accounts receivable and other receivables | -4,734,000 | -2,200,000 |
Income tax receivable | -199,000 | -375,000 |
Inventory | -78,000 | -33,000 |
Prepaid expenses and other current assets | 560,000 | -301,000 |
Other assets | 14,000 | 104,000 |
Accounts payable and accrued expenses | 5,124,000 | -755,000 |
Accrued compensation and related benefits | 254,000 | 93,000 |
Deferred revenue | 11,000 | -71,000 |
Income taxes payable | 1,108,000 | ' |
Other long-term liabilities | -291,000 | 101,000 |
Net cash provided by operating activities | 7,450,000 | 2,550,000 |
Cash flows from investing activities | ' | ' |
Net purchases of property and equipment | -689,000 | -600,000 |
Purchase of Informative Design Partners, Inc. | ' | -829,000 |
Net cash used in investing activities | -689,000 | -1,429,000 |
Cash flows from financing activities | ' | ' |
Proceeds from borrowings under line of credit | 57,856,000 | 55,775,000 |
Repayment of borrowings under line of credit | -57,856,000 | -56,499,000 |
Principal payment on capital lease obligations | -211,000 | -215,000 |
Payment of preferred stock dividends | -82,000 | -82,000 |
Proceeds from the issuance of common stock to employees | 327,000 | ' |
Net cash provided by (used in) financing activities | 34,000 | -1,021,000 |
Effect of exchange rate changes on cash | -143,000 | 136,000 |
Net change in cash | 6,652,000 | 236,000 |
Cash - beginning of period | 1,214,000 | 1,680,000 |
Cash - end of period | $7,866,000 | $1,916,000 |
Note_1_Organization_and_Basis_
Note 1 - Organization and Basis of Presentation | 9 Months Ended | ||
Mar. 31, 2014 | |||
Disclosure Text Block [Abstract] | ' | ||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' | ||
1. Organization and Basis of Presentation | |||
Rand Worldwide, Inc. ("Rand Worldwide”) is a leading supplier in the design automation, facilities and data management software marketplace. Rand Worldwide also provides value-added services, such as training, technical support and other consulting and professional services to corporations, government agencies and educational institutions worldwide. | |||
References in these Notes to “Rand Worldwide”, “the Company”, “us”, “we”, “our” are references to Rand Worldwide, Inc. and, unless the context clearly contemplates otherwise, its consolidated subsidiaries. | |||
The Company is organized into three divisions: IMAGINiT Technologies (“IMAGINiT”), Enterprise Applications and ASCENT—Center for Technical Knowledge (“ASCENT”). | |||
The IMAGINiT division is one of the largest value-added resellers of Autodesk, Inc. (“Autodesk”) products in the world, providing Autodesk solutions and value-added services to customers in the manufacturing, infrastructure, building, and media and entertainment industries. IMAGINiT also specializes in computational fluid dynamics analysis consulting and thermal simulation services and sells its own proprietary software products and related services, enhancing its total client solution offerings. IMAGINiT operates in the United States and Canada. | |||
The Enterprise Applications division is the non-Autodesk component of the business and offers various products and services including data governance solutions, facilities management solutions and 3DExperience products from Dassault Systèmes which include CATIA, ENOVIA, SIMULIA, DELMIA, and DMU. Enterprise Applications also specializes in training solutions for Dassault Systèmes and PTC products including Pro/ENGINEER, CREO, and Windchill. In December 2013, the Rand Secure Archive division within Enterprise Applications expanded its range of data governance solutions with the addition of data backup. To reflect this evolution beyond data archiving and eDiscovery, this division has changed its name to Rand Secure Data. | |||
ASCENT is the courseware division of Rand Worldwide and is a leading developer of professional training materials and knowledge products for engineering software tools. | |||
The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and in accordance with the instructions to Article 8 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to those rules or regulations. The interim financial statements are unaudited, and reflect all adjustments (consisting of normal recurring accruals) which are, in management’s opinion, necessary to present a fair statement of results of the interim periods presented. These financial statements should be read in conjunction with the audited financial statements and the notes thereto in Rand Worldwide Inc.’s Annual Report on Form 10-K for the fiscal year ended June 30, 2013. Operating results for the three and nine months ended March 31, 2014 are not necessarily indicative of results for the full fiscal year or any future interim period. | |||
The books of the Company are maintained in United States dollars and this is the Company’s functional reporting currency. Translations denominated in other than the United States dollar are translated as follows with the related transaction gains and losses being recorded in the Statement of Operations: | |||
● | Monetary items are recorded at the rate of exchange prevailing at the balance sheet date; | ||
● | Non-monetary items including equity are recorded at the historical rate of exchange; and | ||
● | Revenues and expenses are recorded at the period average in which the transaction occurred. | ||
Certain prior year financial statement amounts have been reclassified to conform to the current year presentation. |
Note_2_Supplemental_Disclosure
Note 2 - Supplemental Disclosure of Cash Flow Information | 9 Months Ended |
Mar. 31, 2014 | |
Supplemental Cash Flow Elements [Abstract] | ' |
Cash Flow, Supplemental Disclosures [Text Block] | ' |
2. Supplemental Disclosure of Cash Flow Information | |
The Company paid interest of approximately $5,000 and $21,000 during the three months ended March 31, 2014 and 2013, respectively, and approximately $28,000 and $67,000 during the nine months ended March 31, 2014 and 2013, respectively. The Company also paid federal and state income taxes of approximately $57,000 and $40,000 during the three months ended March 31, 2014 and 2013, respectively, and approximately $142,000 and $99,000 during the nine months ended March 31, 2014 and 2013, respectively. | |
In connection with the acquisition of Informative Design Partners on July 31, 2012, the Company paid cash in the amount of $600,000 and issued 497,512 shares of its common stock valued at $400,000. |
Note_3_Employee_Stock_Compensa
Note 3 - Employee Stock Compensation Plans | 9 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Share-based Arrangements with Employees and Nonemployees [Abstract] | ' | ||||||||||||||||||||
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | ' | ||||||||||||||||||||
3. Employee Stock Compensation Plans | |||||||||||||||||||||
On November 7, 2012, the Company’s stockholders approved the Omnibus Equity Compensation Plan (the “Omnibus Plan”). The Compensation Committee of the Company’s Board of Directors administers the Omnibus Plan and, in that capacity, has the exclusive authority to grant various incentive awards under the Omnibus Plan in the form of stock options, stock awards, stock units, performance units, and other stock-based awards. Up to 2,000,000 shares of the Company’s common stock are available for issuance to participants under the Omnibus Plan. The Omnibus Plan is available to all employees of the Company and its subsidiaries, including employees who are officers or members of the Board, and all non-employee directors and consultants of the Company and its subsidiaries. Prior to the adoption of the Omnibus Plan, the Board of Directors granted options to purchase shares of the Company’s common stock under the Avatech Solutions, Inc. 2002 Stock Option Plan (the “2002 Option Plan”). The 2002 Option Plan, which expired in August 2012, provided for the granting of either incentive or non-qualified stock options to purchase an aggregate of up to 7,800,000 shares of common stock to eligible employees, officers, and directors of the Company and its subsidiaries at an exercise price of not less than the fair market value of the common stock on the date of grant. For the three and nine months ended March 31, 2014 total stock compensation expense recorded in selling, general and administrative expenses was $79,000 and $238,000, respectively, compared to $63,000 and $189,000, respectively, for the same periods of the prior fiscal year. | |||||||||||||||||||||
The following assumptions were used in computing the fair value of stock-based awards granted for the nine months ended March 31, 2014: | |||||||||||||||||||||
Average risk-free interest rate | 2.031 | % | |||||||||||||||||||
Dividend yield | 0 | % | |||||||||||||||||||
Expected term (years) | 10 | ||||||||||||||||||||
Average expected volatility | 0.5 | ||||||||||||||||||||
Weighted average per share fair value of granted options | $ | 0.7 | |||||||||||||||||||
Expected volatilities are based on historical volatility of the Company’s common stock. The expected term of options granted represents the period of time that options granted are expected to be outstanding. The Company uses historical data to estimate option exercise and employee termination within the valuation model. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. | |||||||||||||||||||||
A summary of stock option activity during the nine months ended March 31, 2014 and related information is included in the table below: | |||||||||||||||||||||
Options | Weighted-Average Exercise Price | Aggregate | |||||||||||||||||||
Intrinsic | |||||||||||||||||||||
Value | |||||||||||||||||||||
Outstanding at July 1, 2013 | 3,488,629 | $ | 0.77 | ||||||||||||||||||
Granted | 1,041,360 | 1 | |||||||||||||||||||
Exercised | (466,110 | ) | 0.72 | ||||||||||||||||||
Forfeited | (416,006 | ) | 0.72 | ||||||||||||||||||
Expired | (31,108 | ) | 0.3 | ||||||||||||||||||
Outstanding at March 31, 2014 | 3,616,765 | $ | 0.84 | $ | 266,584 | ||||||||||||||||
Exercisable at March 31, 2014 | 1,376,031 | $ | 0.82 | $ | 117,859 | ||||||||||||||||
Weighted-average remaining contractual life of shares outstanding (years) | 7.2 | ||||||||||||||||||||
Weighted-average remaining contractual life of shares exercisable (years) | 5.4 | ||||||||||||||||||||
All options granted have an exercise price equal to the fair market value of the Company’s common stock on the date of grant. Exercise prices for options outstanding as of March 31, 2014 ranged from $0.50 to $1.71 as follows: | |||||||||||||||||||||
Range of Exercise | Options | Weighted | Weighted | Options | Weighted | Weighted | |||||||||||||||
Prices | Outstanding | Average | Average | Exercisable | Average | Average | |||||||||||||||
Exercise | Remaining | Exercise | Remaining | ||||||||||||||||||
Prices of | Contractual Life | Prices of | Contractual Life | ||||||||||||||||||
Options | of Options | Options | of Options | ||||||||||||||||||
Outstanding | Outstanding (years) | Exercisable | Exercisable (years) | ||||||||||||||||||
$0.50 | – | 0.75 | 1,528,665 | $ | 0.69 | 6.7 | 776,580 | $ | 0.67 | 6.3 | |||||||||||
0.76 | – | 1 | 1,774,600 | 0.89 | 8.2 | 360,951 | 0.83 | 5.6 | |||||||||||||
1.01 | – | 1.5 | 245,000 | 1.13 | 4.2 | 170,000 | 1.12 | 1.6 | |||||||||||||
1.51 | – | 1.71 | 68,500 | 1.71 | 2.5 | 68,500 | 1.71 | 2.5 | |||||||||||||
3,616,765 | 0.84 | 7.2 | 1,376,031 | 0.82 | 5.4 | ||||||||||||||||
Assuming that no additional share-based payments are granted after March 31, 2014, $628,000 of compensation expense will be recognized in the consolidated statement of operations over a weighted-average period of 2.5 years. |
Note_4_Borrowings_Under_Line_o
Note 4 - Borrowings Under Line of Credit | 9 Months Ended |
Mar. 31, 2014 | |
Debt Disclosure [Abstract] | ' |
Debt Disclosure [Text Block] | ' |
4. Borrowings Under Line of Credit | |
On February 29, 2012, the Company entered into an $8 million line of credit facility, including a $1,000,000 sublimit for the issuance of standby or trade letters of credit, with PNC Bank, National Association. The interest rate is the “Eurodollar Rate”, which is calculated by using the LIBOR rate, plus a margin of 2.0%. The interest rate as of March 31, 2014 was 2.2%. The Company had no outstanding borrowings from the bank under its credit line of as of March 31, 2014 or June 30, 2013. The line expires on November 30, 2014. |
Note_5_Obligations_Under_Capit
Note 5 - Obligations Under Capital Leases | 9 Months Ended |
Mar. 31, 2014 | |
Disclosure Text Block Supplement [Abstract] | ' |
Debt and Capital Leases Disclosures [Text Block] | ' |
5. Obligations Under Capital Leases | |
The Company has incurred various capital lease obligations for computer equipment. This capital lease obligation totaled $407,000 and $616,000 as of March 31, 2014 and June 30, 2013, respectively. |
Note_6_Income_Taxes
Note 6 - Income Taxes | 9 Months Ended |
Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Tax Disclosure [Text Block] | ' |
6. Income Taxes | |
Income taxes are accounted for under the liability method, under which deferred tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. A valuation allowance against the net deferred tax assets is recorded if, based upon the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company records liabilities for income tax contingencies if it is probable that the Company has incurred a tax liability and the liability or range of loss can be reasonably estimated. | |
The Company continues to maintain a valuation allowance on the entirety of its U.S. capital loss carryforwards, foreign net operating loss carryforwards, and a portion of its federal and state net operating loss carryforwards due to uncertainty about its ability to utilize such carryforwards. | |
The Company believes that its income tax filing positions taken or expected to be taken in its tax returns will more likely than not be sustained upon audit by the taxing authorities and does not anticipate any adjustments that will result in a material adverse impact on the Company’s financial condition, results of operations, or cash flow. Therefore, no reserves for uncertain income tax positions have been recorded. The Company’s income tax returns for the past three years are subject to examination by tax authorities, and may change upon examination. | |
The Company records interest related to taxes in other expense and records penalties in operating expenses. |
Note_7_Earnings_Per_Share
Note 7 - Earnings Per Share | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings Per Share [Text Block] | ' | ||||||||
7. Earnings Per Share | |||||||||
Basic earnings per common share is computed by dividing net earnings available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share include the potential dilution that would occur from common shares issuable upon the exercise of outstanding stock options and warrants and the conversion of preferred stock. As of March 31, 2014, 5,712,549 shares of common stock were issuable upon the conversion or exercise of options, warrants and preferred stock. For the three months ended March 31, 2014 and 2013, there were 213,500 and 506,497 shares of common stock equivalents, respectively, excluded from the computation of diluted earnings per share because their effect would have been antidilutive. For the nine months ended March 31, 2014 and 2013, there were 313,500 and 1,397,857 shares of common stock equivalents, respectively, excluded from the computation of diluted earnings per share because their effect would have been antidilutive. | |||||||||
The following tables summarize the computations of basic and diluted earnings per common share for the three and nine months ended March 31, 2014 and 2013: | |||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Numerator for basic and diluted earnings per share: | |||||||||
Net income from continuing operations | $ | 2,228,000 | $ | 1,898,000 | |||||
Preferred stock dividends | (27,000 | ) | (26,000 | ) | |||||
Net income from continuing operations available to common stockholders | 2,201,000 | 1,872,000 | |||||||
Loss on sale of discontinued operations, net of tax | — | — | |||||||
Loss from discontinued operations, net of tax | — | (123,000 | ) | ||||||
Net income available to common stockholders | $ | 2,201,000 | $ | 1,749,000 | |||||
Weighted average shares used in computing basic net income per share: | 54,264,017 | 53,990,589 | |||||||
Assumed conversion of preferred stock | 2,095,784 | 2,095,784 | |||||||
Effect of outstanding stock options | 877,526 | 402,686 | |||||||
Weighted average shares used in computing diluted net income per share: | 57,237,327 | 56,489,059 | |||||||
Earnings per common share attributable to common stockholders – basic | |||||||||
Income from continuing operations per common share | $ | 0.04 | $ | 0.03 | |||||
Loss from discontinued operations per common share | — | — | |||||||
Earnings per common share attributable to common stockholders – basic | $ | 0.04 | $ | 0.03 | |||||
Earnings per common share attributable to common stockholders – diluted | |||||||||
Income from continuing operations per common share | $ | 0.04 | $ | 0.03 | |||||
Loss from discontinued operations per common share | — | — | |||||||
Earnings per common share attributable to common stockholders – diluted | $ | 0.04 | $ | 0.03 | |||||
Nine Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Numerator for basic and diluted earnings per share: | |||||||||
Net income from continuing operations | $ | 3,514,000 | $ | 2,989,000 | |||||
Preferred stock dividends | (82,000 | ) | (82,000 | ) | |||||
Net income from continuing operations available to common stockholders | 3,432,000 | 2,907,000 | |||||||
Loss on sale of discontinued operations, net of tax | (374,000 | ) | |||||||
Loss from discontinued operations, net of tax | — | (142,000 | ) | ||||||
Net income available to common stockholders | $ | 3,058,000 | $ | 2,765,000 | |||||
Weighted average shares used in computing basic net income per share: | 54,122,392 | 53,935,863 | |||||||
Assumed conversion of preferred stock | 2,095,784 | 2,095,784 | |||||||
Effect of outstanding stock options | 716,773 | 318,285 | |||||||
Weighted average shares used in computing diluted net income per share: | 56,934,949 | 56,349,932 | |||||||
Earnings per common share attributable to common stockholders – basic | |||||||||
Income from continuing operations per common share | $ | 0.06 | $ | 0.05 | |||||
Loss from discontinued operations per common share | (0.01 | ) | — | ||||||
Earnings per common share attributable to common stockholders – basic | $ | 0.05 | $ | 0.05 | |||||
Earnings per common share attributable to common stockholders – diluted | |||||||||
Income from continuing operations per common share | $ | 0.06 | $ | 0.05 | |||||
Loss from discontinued operations per common share | (0.01 | ) | — | ||||||
Earnings per common share attributable to common stockholders – diluted | $ | 0.05 | $ | 0.05 | |||||
Note_8_Preferred_Stock
Note 8 - Preferred Stock | 9 Months Ended |
Mar. 31, 2014 | |
Stockholders' Equity Note [Abstract] | ' |
Stockholders' Equity Note Disclosure [Text Block] | ' |
8. Preferred Stock | |
Convertible Preferred Stock | |
At March 31, 2014, 384,495 shares of Series D Convertible Preferred Stock (the “Series D shares”) were outstanding with the following terms: | |
Redemption Feature- The Series D shares are redeemable in the event that the Company is engaged in certain business combinations that are approved by the Board of Directors and subsequently submitted and approved by a vote of the Company’s stockholders. Any director who holds shares of Series D is not eligible to vote on the proposed business combination. The redemption price is $0.30 (upon conversion) per share plus an amount equal to all declared and unpaid dividends accrued on such shares since the original issue date. | |
Voting Rights- Each holder of the Series D shares shall vote together with all other classes and series of stock of the Company as a single class on all actions. Each share shall entitle the holder to one vote per share of common stock into which the preferred stock is then convertible on each such action. In addition, these holders have special voting rights in connection with certain matters, including the issuance of senior stock or debentures, certain mergers, the dissolution of the Company and any amendment to the charter or the terms of the securities that would impair their rights. | |
Dividend Rate- The holders of the Series D shares are entitled to receive cumulative dividends at a rate of 10% per annum when and as declared by the Board of Directors. Dividends are paid quarterly to preferred stockholders. | |
Conversion Feature- The Series D shares are convertible at any time beginning 120 days after the original issuance date at the option of the holder and automatically converts into common stock if the common stock trades for more than $2.25 per share for 60 consecutive trading days. Each Series D share is convertible into shares of common stock by multiplying the appropriate conversion rate in effect by the number of shares of preferred stock being converted. As of March 31, 2014, the conversion rate would yield approximately two shares of common stock for each share of Series D share; however, this rate may be adjusted due to stock splits, dividends, and other events defined in the stock purchase agreement between the Company and the holders of the Series D shares. | |
Liquidation Preference- In the event of a liquidation, dissolution or winding up of the Company, the holders of Series D shares are entitled to receive for each share, prior and in preference to any distribution of any of the assets or surplus funds to the holders of common stock, an amount equal to $0.60 per share plus all accumulated but unpaid dividends. If upon the occurrence of such event, the assets and funds thus distributed among the holders are insufficient to permit the payment of the preferential amount, then the entire assets and funds of the Company legally available for distribution shall be distributed ratably among the preferred stockholders. | |
At March 31, 2014, 862 shares of Series E Convertible Preferred Stock (the “Series E shares”) were outstanding with the following terms: | |
Redemption Feature- The Series E shares are redeemable in the event that the Company is engaged in certain business combinations that are approved by the Board of Directors and subsequently submitted and approved by a vote of the Company’s stockholders. Any director who holds shares of Series E is not eligible to vote on the proposed business combination. The redemption price is $0.65 per share (upon conversion) plus an amount equal to all declared and unpaid dividends accrued on such shares since the original issue date. | |
Voting Rights- Each holder of the Series E shares shall vote together with all other classes and series of stock of the Company as a single class on all actions. Each share shall entitle the holder to one vote per share of common stock into which the preferred stock is then convertible on each such action. In addition, these holders have special voting rights in connection with certain matters, including the issuance of senior stock or debentures, certain mergers, the dissolution of the Company and any amendment to the charter or the terms of the securities that would impair their rights. | |
Dividend Rate- The holders of the Series E shares are entitled to receive cumulative dividends at a rate of 10% per annum when and as declared by the Board of Directors. Dividends are paid quarterly to preferred stockholders. | |
Conversion Feature- The Series E shares are convertible at any time beginning 120 days after the original issuance date at the option of the holder and automatically converts into common stock if the common stock trades for more than $2.25 per share for 60 consecutive trading days. Each Series E share is convertible into shares of common stock by multiplying the appropriate conversion rate in effect by the number of shares of preferred stock being converted. As of March 31, 2014 the conversion rate would yield approximately 1,538.5 shares of common stock for each share of Series E; however, this rate may be adjusted due to stock splits, dividends, and other events defined in the stock purchase agreements between the Company and the holders of the Series E shares. | |
Liquidation Preference- In the event of a liquidation, dissolution or winding up of the Company, the holders of Series E shares are entitled to receive for each share, prior and in preference to any distribution of any of the assets or surplus funds to the holders of common stock, an amount equal to $0.65 per share (upon conversion) plus all accumulated but unpaid dividends. If upon the occurrence of such event, the | |
assets and funds thus distributed among the holders are insufficient to permit the payment of the preferential amount, then the entire assets and funds of the Company legally available for distribution shall be distributed ratably among the preferred stockholders. |
Note_9_Discontinued_Operations
Note 9 - Discontinued Operations | 9 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | ' | ||||||||||||||||
9. Discontinued Operations | |||||||||||||||||
During the fiscal quarter ended 2013, the Company disposed of its operations in Australia, Singapore and Malaysia because those divisions did not align with the current strategic direction of the Company. The following table summarizes the financial results of the entities which have been reclassified as discontinued operations for the periods presented: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenues | $ | — | $ | 2,037,000 | $ | — | $ | 5,752,000 | |||||||||
Loss on sale of discontinued operations, net of tax | — | — | 374,000 | — | |||||||||||||
Loss from discontinued operations, net of tax | — | 123,000 | — | 142,000 | |||||||||||||
Note_10_Operating_Leases
Note 10 - Operating Leases | 9 Months Ended | ||||
Mar. 31, 2014 | |||||
Operating Leases [Abstract] | ' | ||||
Operating Leases [Text Block] | ' | ||||
10. Operating Leases | |||||
The Company leases certain office space and equipment under noncancellable operating lease agreements that expire in various years through 2021 and that, generally, do not contain significant renewal options. Future minimum payments under all noncancellable operating leases with initial terms of one year or more consisted of the following at March 31, 2014: | |||||
Twelve months ending March 31: | |||||
2015 | $ | 2,400,000 | |||
2016 | 1,893,000 | ||||
2017 | 1,317,000 | ||||
2018 | 889,000 | ||||
2019 | 481,000 | ||||
Thereafter | 337,000 | ||||
Total minimum lease payments | $ | 7,317,000 | |||
Note_11_Capital_Leases
Note 11 - Capital Leases | 9 Months Ended | ||||
Mar. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies Disclosure [Text Block] | ' | ||||
11. Capital Leases | |||||
The Company has various computer equipment used in training facilities and by employees throughout its office locations. These capital lease obligations totaled $407,000 as of March 31, 2014 with $229,000 representing the short-term balance of the lease and shown as Obligations under capital leases in the accompanying balance sheets. Payments for the leases are made either monthly or quarterly through September 2016 and depreciation expense on this equipment was $187,000 as of March 31, 2014. Future minimum payments consisted of the following at March 31, 2014: | |||||
Twelve months ending March 31: | |||||
2015 | $ | 250,000 | |||
2016 | 137,000 | ||||
2017 | 58,000 | ||||
Total minimum lease payments | 445,000 | ||||
Less: | |||||
Taxes | 22,000 | ||||
Imputed interest | 16,000 | ||||
Present value of future minimum lease payments | $ | 407,000 | |||
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 9 Months Ended | ||
Mar. 31, 2014 | |||
Accounting Policies [Abstract] | ' | ||
Business Description and Basis of Presentation [Text Block] | ' | ||
Rand Worldwide, Inc. ("Rand Worldwide”) is a leading supplier in the design automation, facilities and data management software marketplace. Rand Worldwide also provides value-added services, such as training, technical support and other consulting and professional services to corporations, government agencies and educational institutions worldwide. | |||
References in these Notes to “Rand Worldwide”, “the Company”, “us”, “we”, “our” are references to Rand Worldwide, Inc. and, unless the context clearly contemplates otherwise, its consolidated subsidiaries. | |||
The Company is organized into three divisions: IMAGINiT Technologies (“IMAGINiT”), Enterprise Applications and ASCENT—Center for Technical Knowledge (“ASCENT”). | |||
The IMAGINiT division is one of the largest value-added resellers of Autodesk, Inc. (“Autodesk”) products in the world, providing Autodesk solutions and value-added services to customers in the manufacturing, infrastructure, building, and media and entertainment industries. IMAGINiT also specializes in computational fluid dynamics analysis consulting and thermal simulation services and sells its own proprietary software products and related services, enhancing its total client solution offerings. IMAGINiT operates in the United States and Canada. | |||
The Enterprise Applications division is the non-Autodesk component of the business and offers various products and services including data governance solutions, facilities management solutions and 3DExperience products from Dassault Systèmes which include CATIA, ENOVIA, SIMULIA, DELMIA, and DMU. Enterprise Applications also specializes in training solutions for Dassault Systèmes and PTC products including Pro/ENGINEER, CREO, and Windchill. In December 2013, the Rand Secure Archive division within Enterprise Applications expanded its range of data governance solutions with the addition of data backup. To reflect this evolution beyond data archiving and eDiscovery, this division has changed its name to Rand Secure Data. | |||
ASCENT is the courseware division of Rand Worldwide and is a leading developer of professional training materials and knowledge products for engineering software tools. | |||
The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and in accordance with the instructions to Article 8 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to those rules or regulations. The interim financial statements are unaudited, and reflect all adjustments (consisting of normal recurring accruals) which are, in management’s opinion, necessary to present a fair statement of results of the interim periods presented. These financial statements should be read in conjunction with the audited financial statements and the notes thereto in Rand Worldwide Inc.’s Annual Report on Form 10-K for the fiscal year ended June 30, 2013. Operating results for the three and nine months ended March 31, 2014 are not necessarily indicative of results for the full fiscal year or any future interim period. | |||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | ' | ||
The books of the Company are maintained in United States dollars and this is the Company’s functional reporting currency. Translations denominated in other than the United States dollar are translated as follows with the related transaction gains and losses being recorded in the Statement of Operations: | |||
● | Monetary items are recorded at the rate of exchange prevailing at the balance sheet date; | ||
● | Non-monetary items including equity are recorded at the historical rate of exchange; and | ||
● | Revenues and expenses are recorded at the period average in which the transaction occurred. | ||
Reclassification, Policy [Policy Text Block] | ' | ||
Certain prior year financial statement amounts have been reclassified to conform to the current year presentation. |
Note_3_Employee_Stock_Compensa1
Note 3 - Employee Stock Compensation Plans (Tables) | 9 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Share-based Arrangements with Employees and Nonemployees [Abstract] | ' | ||||||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||||||||||||||
Average risk-free interest rate | 2.031 | % | |||||||||||||||||||
Dividend yield | 0 | % | |||||||||||||||||||
Expected term (years) | 10 | ||||||||||||||||||||
Average expected volatility | 0.5 | ||||||||||||||||||||
Weighted average per share fair value of granted options | $ | 0.7 | |||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||||||||||
Options | Weighted-Average Exercise Price | Aggregate | |||||||||||||||||||
Intrinsic | |||||||||||||||||||||
Value | |||||||||||||||||||||
Outstanding at July 1, 2013 | 3,488,629 | $ | 0.77 | ||||||||||||||||||
Granted | 1,041,360 | 1 | |||||||||||||||||||
Exercised | (466,110 | ) | 0.72 | ||||||||||||||||||
Forfeited | (416,006 | ) | 0.72 | ||||||||||||||||||
Expired | (31,108 | ) | 0.3 | ||||||||||||||||||
Outstanding at March 31, 2014 | 3,616,765 | $ | 0.84 | $ | 266,584 | ||||||||||||||||
Exercisable at March 31, 2014 | 1,376,031 | $ | 0.82 | $ | 117,859 | ||||||||||||||||
Weighted-average remaining contractual life of shares outstanding (years) | 7.2 | ||||||||||||||||||||
Weighted-average remaining contractual life of shares exercisable (years) | 5.4 | ||||||||||||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | ' | ||||||||||||||||||||
Range of Exercise | Options | Weighted | Weighted | Options | Weighted | Weighted | |||||||||||||||
Prices | Outstanding | Average | Average | Exercisable | Average | Average | |||||||||||||||
Exercise | Remaining | Exercise | Remaining | ||||||||||||||||||
Prices of | Contractual Life | Prices of | Contractual Life | ||||||||||||||||||
Options | of Options | Options | of Options | ||||||||||||||||||
Outstanding | Outstanding (years) | Exercisable | Exercisable (years) | ||||||||||||||||||
$0.50 | – | 0.75 | 1,528,665 | $ | 0.69 | 6.7 | 776,580 | $ | 0.67 | 6.3 | |||||||||||
0.76 | – | 1 | 1,774,600 | 0.89 | 8.2 | 360,951 | 0.83 | 5.6 | |||||||||||||
1.01 | – | 1.5 | 245,000 | 1.13 | 4.2 | 170,000 | 1.12 | 1.6 | |||||||||||||
1.51 | – | 1.71 | 68,500 | 1.71 | 2.5 | 68,500 | 1.71 | 2.5 | |||||||||||||
3,616,765 | 0.84 | 7.2 | 1,376,031 | 0.82 | 5.4 |
Note_7_Earnings_Per_Share_Tabl
Note 7 - Earnings Per Share (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||
Three Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Numerator for basic and diluted earnings per share: | |||||||||
Net income from continuing operations | $ | 2,228,000 | $ | 1,898,000 | |||||
Preferred stock dividends | (27,000 | ) | (26,000 | ) | |||||
Net income from continuing operations available to common stockholders | 2,201,000 | 1,872,000 | |||||||
Loss on sale of discontinued operations, net of tax | — | — | |||||||
Loss from discontinued operations, net of tax | — | (123,000 | ) | ||||||
Net income available to common stockholders | $ | 2,201,000 | $ | 1,749,000 | |||||
Weighted average shares used in computing basic net income per share: | 54,264,017 | 53,990,589 | |||||||
Assumed conversion of preferred stock | 2,095,784 | 2,095,784 | |||||||
Effect of outstanding stock options | 877,526 | 402,686 | |||||||
Weighted average shares used in computing diluted net income per share: | 57,237,327 | 56,489,059 | |||||||
Earnings per common share attributable to common stockholders – basic | |||||||||
Income from continuing operations per common share | $ | 0.04 | $ | 0.03 | |||||
Loss from discontinued operations per common share | — | — | |||||||
Earnings per common share attributable to common stockholders – basic | $ | 0.04 | $ | 0.03 | |||||
Earnings per common share attributable to common stockholders – diluted | |||||||||
Income from continuing operations per common share | $ | 0.04 | $ | 0.03 | |||||
Loss from discontinued operations per common share | — | — | |||||||
Earnings per common share attributable to common stockholders – diluted | $ | 0.04 | $ | 0.03 | |||||
Nine Months Ended March 31, | |||||||||
2014 | 2013 | ||||||||
Numerator for basic and diluted earnings per share: | |||||||||
Net income from continuing operations | $ | 3,514,000 | $ | 2,989,000 | |||||
Preferred stock dividends | (82,000 | ) | (82,000 | ) | |||||
Net income from continuing operations available to common stockholders | 3,432,000 | 2,907,000 | |||||||
Loss on sale of discontinued operations, net of tax | (374,000 | ) | |||||||
Loss from discontinued operations, net of tax | — | (142,000 | ) | ||||||
Net income available to common stockholders | $ | 3,058,000 | $ | 2,765,000 | |||||
Weighted average shares used in computing basic net income per share: | 54,122,392 | 53,935,863 | |||||||
Assumed conversion of preferred stock | 2,095,784 | 2,095,784 | |||||||
Effect of outstanding stock options | 716,773 | 318,285 | |||||||
Weighted average shares used in computing diluted net income per share: | 56,934,949 | 56,349,932 | |||||||
Earnings per common share attributable to common stockholders – basic | |||||||||
Income from continuing operations per common share | $ | 0.06 | $ | 0.05 | |||||
Loss from discontinued operations per common share | (0.01 | ) | — | ||||||
Earnings per common share attributable to common stockholders – basic | $ | 0.05 | $ | 0.05 | |||||
Earnings per common share attributable to common stockholders – diluted | |||||||||
Income from continuing operations per common share | $ | 0.06 | $ | 0.05 | |||||
Loss from discontinued operations per common share | (0.01 | ) | — | ||||||
Earnings per common share attributable to common stockholders – diluted | $ | 0.05 | $ | 0.05 |
Note_9_Discontinued_Operations1
Note 9 - Discontinued Operations (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||||||||||
Schedule Of Entities Reclassified As Discontinued Operations [Table Text Block] | ' | ||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Revenues | $ | — | $ | 2,037,000 | $ | — | $ | 5,752,000 | |||||||||
Loss on sale of discontinued operations, net of tax | — | — | 374,000 | — | |||||||||||||
Loss from discontinued operations, net of tax | — | 123,000 | — | 142,000 |
Note_10_Operating_Leases_Table
Note 10 - Operating Leases (Tables) | 9 Months Ended | ||||
Mar. 31, 2014 | |||||
Operating Leases [Abstract] | ' | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | ||||
Twelve months ending March 31: | |||||
2015 | $ | 2,400,000 | |||
2016 | 1,893,000 | ||||
2017 | 1,317,000 | ||||
2018 | 889,000 | ||||
2019 | 481,000 | ||||
Thereafter | 337,000 | ||||
Total minimum lease payments | $ | 7,317,000 |
Note_11_Capital_Leases_Tables
Note 11 - Capital Leases (Tables) | 9 Months Ended | ||||
Mar. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | ' | ||||
Twelve months ending March 31: | |||||
2015 | $ | 250,000 | |||
2016 | 137,000 | ||||
2017 | 58,000 | ||||
Total minimum lease payments | 445,000 | ||||
Less: | |||||
Taxes | 22,000 | ||||
Imputed interest | 16,000 | ||||
Present value of future minimum lease payments | $ | 407,000 |
Note_1_Organization_and_Basis_1
Note 1 - Organization and Basis of Presentation (Details) | 9 Months Ended |
Mar. 31, 2014 | |
Disclosure Text Block [Abstract] | ' |
Number of Operating Segments | 3 |
Note_2_Supplemental_Disclosure1
Note 2 - Supplemental Disclosure of Cash Flow Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Jul. 31, 2012 | |
IDP [Member] | |||||
Note 2 - Supplemental Disclosure of Cash Flow Information (Details) [Line Items] | ' | ' | ' | ' | ' |
Interest Paid | $5,000 | $21,000 | $28,000 | $67,000 | ' |
Income Taxes Paid | 57,000 | 40,000 | 142,000 | 99,000 | ' |
Payments to Acquire Businesses, Gross | ' | ' | ' | ' | 600,000 |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares (in Shares) | ' | ' | ' | ' | 497,512 |
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | ' | ' | ' | ' | $400,000 |
Note_3_Employee_Stock_Compensa2
Note 3 - Employee Stock Compensation Plans (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Nov. 07, 2012 | Jun. 30, 2012 | |
Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Selling, General and Administrative Expenses [Member] | Omnibus Equity Compensation Plan [Member] | Avatech Solutions, Inc. 2002 Stock Option Plan (the "Plan") [Member] | ||
Note 3 - Employee Stock Compensation Plans (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares) | ' | ' | ' | ' | ' | 2,000,000 | 7,800,000 |
Allocated Share-based Compensation Expense | ' | $79,000 | $63,000 | $238,000 | $189,000 | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit (in Dollars per share) | $0.50 | ' | ' | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit (in Dollars per share) | $1.71 | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $628,000 | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | '2 years 6 months | ' | ' | ' | ' | ' | ' |
Note_3_Employee_Stock_Compensa3
Note 3 - Employee Stock Compensation Plans (Details) - Assumptions Made in Computing Fair Value of Stock-based Awards (USD $) | 9 Months Ended |
Mar. 31, 2014 | |
Assumptions Made in Computing Fair Value of Stock-based Awards [Abstract] | ' |
Average risk-free interest rate | 2.03% |
Dividend yield | 0.00% |
Expected term (years) | '10 years |
Average expected volatility | 0.50% |
Weighted average per share fair value of granted options (in Dollars per share) | $0.70 |
Note_3_Employee_Stock_Compensa4
Note 3 - Employee Stock Compensation Plans (Details) - Summary of Stock Option Activity and Related Information (USD $) | 9 Months Ended |
Mar. 31, 2014 | |
Summary of Stock Option Activity and Related Information [Abstract] | ' |
Outstanding at July 1, 2013 | 3,488,629 |
Outstanding at July 1, 2013 | $0.77 |
Granted | 1,041,360 |
Granted | $1 |
Exercised | -466,110 |
Exercised | $0.72 |
Forfeited | -416,006 |
Forfeited | $0.72 |
Expired | -31,108 |
Expired | $0.30 |
Outstanding at March 31, 2014 | 3,616,765 |
Outstanding at March 31, 2014 | $0.84 |
Outstanding at March 31, 2014 | $266,584 |
Exercisable at March 31, 2014 | 1,376,031 |
Exercisable at March 31, 2014 | $0.82 |
Exercisable at March 31, 2014 | $117,859 |
Weighted-average remaining contractual life of shares outstanding (years) | '7 years 73 days |
Weighted-average remaining contractual life of shares exercisable (years) | '5 years 146 days |
Note_3_Employee_Stock_Compensa5
Note 3 - Employee Stock Compensation Plans (Details) - Exercise Price for Options Outstanding (USD $) | 9 Months Ended |
Mar. 31, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower Limit | $0.50 |
Range of Exercise Prices, Upper Limit | $1.71 |
Options Outstanding (in Shares) | 3,616,765 |
Weighted Average Exercise Prices of Options Outstanding | $0.84 |
Weighted Average Remaining Contractual Life of Options Outstanding (years) | '7 years 73 days |
Options Exercisable (in Shares) | 1,376,031 |
Weighted Average Exercise Prices of Options Exercisable | $0.82 |
Weighted Average Remaining Contractual Life of Options Exercisable (years) | '5 years 146 days |
Price Range $0.50 to $0.75 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower Limit | $0.50 |
Range of Exercise Prices, Upper Limit | $0.75 |
Options Outstanding (in Shares) | 1,528,665 |
Weighted Average Exercise Prices of Options Outstanding | $0.69 |
Weighted Average Remaining Contractual Life of Options Outstanding (years) | '6 years 255 days |
Options Exercisable (in Shares) | 776,580 |
Weighted Average Exercise Prices of Options Exercisable | $0.67 |
Weighted Average Remaining Contractual Life of Options Exercisable (years) | '6 years 109 days |
Price Range $.76 to 1.00 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower Limit | $0.76 |
Range of Exercise Prices, Upper Limit | $1 |
Options Outstanding (in Shares) | 1,774,600 |
Weighted Average Exercise Prices of Options Outstanding | $0.89 |
Weighted Average Remaining Contractual Life of Options Outstanding (years) | '8 years 73 days |
Options Exercisable (in Shares) | 360,951 |
Weighted Average Exercise Prices of Options Exercisable | $0.83 |
Weighted Average Remaining Contractual Life of Options Exercisable (years) | '5 years 219 days |
Price Range $1.01 to $1.50 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower Limit | $1.01 |
Range of Exercise Prices, Upper Limit | $1.50 |
Options Outstanding (in Shares) | 245,000 |
Weighted Average Exercise Prices of Options Outstanding | $1.13 |
Weighted Average Remaining Contractual Life of Options Outstanding (years) | '4 years 73 days |
Options Exercisable (in Shares) | 170,000 |
Weighted Average Exercise Prices of Options Exercisable | $1.12 |
Weighted Average Remaining Contractual Life of Options Exercisable (years) | '1 year 219 days |
Price Range $1.51 to $1.71 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Range of Exercise Prices, Lower Limit | $1.51 |
Range of Exercise Prices, Upper Limit | $1.71 |
Options Outstanding (in Shares) | 68,500 |
Weighted Average Exercise Prices of Options Outstanding | $1.71 |
Weighted Average Remaining Contractual Life of Options Outstanding (years) | '2 years 6 months |
Options Exercisable (in Shares) | 68,500 |
Weighted Average Exercise Prices of Options Exercisable | $1.71 |
Weighted Average Remaining Contractual Life of Options Exercisable (years) | '2 years 6 months |
Note_4_Borrowings_Under_Line_o1
Note 4 - Borrowings Under Line of Credit (Details) (USD $) | 1 Months Ended | ||||
Feb. 29, 2012 | Feb. 29, 2012 | Mar. 31, 2014 | Jun. 30, 2013 | Feb. 29, 2012 | |
PNC Bank, National Association [Member] | PNC Bank, National Association [Member] | PNC Bank, National Association [Member] | PNC Bank, National Association [Member] | PNC Bank, National Association [Member] | |
London Interbank Offered Rate (LIBOR) [Member] | Standby Letters of Credit [Member] | ||||
Note 4 - Borrowings Under Line of Credit (Details) [Line Items] | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | $1,000,000 | ' | ' | $8,000,000 |
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ' | ' | ' | ' |
Line of Credit Facility, Interest Rate at Period End | ' | ' | 2.20% | ' | ' |
Line of Credit Facility, Amount Outstanding | ' | ' | $0 | $0 | ' |
Note_5_Obligations_Under_Capit1
Note 5 - Obligations Under Capital Leases (Details) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
Disclosure Text Block Supplement [Abstract] | ' | ' |
Capital Lease Obligations | $407,000 | $616,000 |
Note_7_Earnings_Per_Share_Deta
Note 7 - Earnings Per Share (Details) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Common Stock, Capital Shares Reserved for Future Issuance | 5,712,549 | ' | 5,712,549 | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 213,500 | 506,497 | 313,500 | 1,397,857 |
Note_7_Earnings_Per_Share_Deta1
Note 7 - Earnings Per Share (Details) - Computations of Basic and Diluted Loss Per Common Share (USD $) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Note 7 - Earnings Per Share (Details) - Computations of Basic and Diluted Loss Per Common Share [Line Items] | ' | ' | ' | ' |
Net income from continuing operations | $2,228,000 | $1,898,000 | $3,514,000 | $2,989,000 |
Preferred stock dividends | -27,000 | -26,000 | -82,000 | -82,000 |
Net income available to common stockholders | 2,201,000 | 1,749,000 | 3,058,000 | 2,765,000 |
Weighted average shares used in computing basic net income per share: (in Shares) | 54,264,017 | 53,990,589 | 54,122,392 | 53,935,863 |
Assumed conversion of preferred stock (in Shares) | 2,095,784 | 2,095,784 | 2,095,784 | 2,095,784 |
Effect of outstanding stock options (in Shares) | 877,526 | 402,686 | 716,773 | 318,285 |
Weighted average shares used in computing diluted net income per share: (in Shares) | 57,237,327 | 56,489,059 | 56,934,949 | 56,349,932 |
Income from continuing operations per common share (in Dollars per share) | $0.04 | $0.03 | $0.06 | $0.05 |
Loss from discontinued operations per common share (in Dollars per share) | ' | ' | ($0.01) | ' |
Earnings per common share attributable to common stockholders b basic (in Dollars per share) | $0.04 | $0.03 | $0.05 | $0.05 |
Income from continuing operations per common share (in Dollars per share) | $0.04 | $0.03 | $0.06 | $0.05 |
Loss from discontinued operations per common share (in Dollars per share) | ' | ' | ($0.01) | ' |
Earnings per common share attributable to common stockholders b diluted (in Dollars per share) | $0.04 | $0.03 | $0.05 | $0.05 |
Loss on sale of discontinued operations, net of tax | ' | ' | -374,000 | ' |
Loss from discontinued operations, net of tax | ' | -123,000 | ' | -142,000 |
Continuing Operations [Member] | ' | ' | ' | ' |
Note 7 - Earnings Per Share (Details) - Computations of Basic and Diluted Loss Per Common Share [Line Items] | ' | ' | ' | ' |
Net income available to common stockholders | $2,201,000 | $1,872,000 | $3,432,000 | $2,907,000 |
Note_8_Preferred_Stock_Details
Note 8 - Preferred Stock (Details) (USD $) | 9 Months Ended |
Mar. 31, 2014 | |
Series D Preferred Stock [Member] | ' |
Note 8 - Preferred Stock (Details) [Line Items] | ' |
Preferred Stock, Shares Outstanding (in Shares) | 384,495 |
Preferred Stock, Redemption Price Per Share | $0.30 |
Number of Votes | 1 |
Preferred Stock, Dividend Rate, Percentage | 10.00% |
Convertible Preferred Stock, Period Preceding Conversion | '120 days |
Convertible Preferred Stock, Stock Price Trigger | $2.25 |
Convertible Preferred Stock, Threshold Consecutive Trading Days | '60 days |
Convertible Preferred Stock, Shares Issued upon Conversion (in Shares) | 2 |
Preferred Stock, Liquidation Preference Per Share | $0.60 |
Series E Preferred Stock [Member] | ' |
Note 8 - Preferred Stock (Details) [Line Items] | ' |
Preferred Stock, Shares Outstanding (in Shares) | 862 |
Preferred Stock, Redemption Price Per Share | $0.65 |
Number of Votes | 1 |
Preferred Stock, Dividend Rate, Percentage | 10.00% |
Convertible Preferred Stock, Period Preceding Conversion | '120 days |
Convertible Preferred Stock, Stock Price Trigger | $2.25 |
Convertible Preferred Stock, Threshold Consecutive Trading Days | '60 days |
Convertible Preferred Stock, Shares Issued upon Conversion (in Shares) | 1,538.50 |
Preferred Stock, Liquidation Preference Per Share | $0.65 |
Note_9_Discontinued_Operations2
Note 9 - Discontinued Operations (Details) - Financial Results of Entities Which Have Been Reclassified as Discontinued Operations (USD $) | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Financial Results of Entities Which Have Been Reclassified as Discontinued Operations [Abstract] | ' | ' | ' |
Revenues | $2,037,000 | ' | $5,752,000 |
Loss on sale of discontinued operations, net of tax | ' | 374,000 | ' |
Loss from discontinued operations, net of tax | $123,000 | ' | $142,000 |
Note_10_Operating_Leases_Detai
Note 10 - Operating Leases (Details) - Future Minimum Lease Payments Under Operating Leases (USD $) | Mar. 31, 2014 |
Future Minimum Lease Payments Under Operating Leases [Abstract] | ' |
2015 | $2,400,000 |
2016 | 1,893,000 |
2017 | 1,317,000 |
2018 | 889,000 |
2019 | 481,000 |
Thereafter | 337,000 |
Total minimum lease payments | $7,317,000 |
Note_11_Capital_Leases_Details
Note 11 - Capital Leases (Details) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 | Mar. 31, 2014 |
Assets Held under Capital Leases [Member] | |||
Note 11 - Capital Leases (Details) [Line Items] | ' | ' | ' |
Capital Lease Obligations | $407,000 | $616,000 | ' |
Capital Lease Obligations, Current | 229,000 | 294,000 | ' |
Depreciation | ' | ' | $187,000 |
Note_11_Capital_Leases_Details1
Note 11 - Capital Leases (Details) - Future Minimum Capital Lease Payments (USD $) | Mar. 31, 2014 |
Future Minimum Capital Lease Payments [Abstract] | ' |
2015 | $250,000 |
2016 | 137,000 |
2017 | 58,000 |
Total minimum lease payments | 445,000 |
Less: | ' |
Taxes | 22,000 |
Imputed interest | 16,000 |
Present value of future minimum lease payments | $407,000 |