Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Mar. 31, 2015 | 8-May-15 | |
Entity Registrant Name | RAND WORLDWIDE INC | |
Entity Central Index Key | 852437 | |
Current Fiscal Year End Date | -24 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 29,671,832 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | FALSE |
Consolidated_Balance_Sheets_Cu
Consolidated Balance Sheets (Current Period Unaudited) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
Current assets: | ||
Cash | $873,000 | $9,557,000 |
Accounts receivable, less allowance of $208,000 as of March 31, 2015 and $211,000 as of June 30, 2014 | 14,569,000 | 15,290,000 |
Income tax receivable | 431,000 | 1,088,000 |
Other receivables | 1,035,000 | 922,000 |
Inventory | 167,000 | 101,000 |
Prepaid expenses and other current assets | 467,000 | 2,021,000 |
Deferred tax assets | 46,000 | 119,000 |
Total current assets | 17,588,000 | 29,098,000 |
Property and equipment: | ||
Computer software and equipment | 5,043,000 | 8,160,000 |
Office furniture and equipment | 1,351,000 | 1,444,000 |
Leasehold improvements | 486,000 | 579,000 |
6,880,000 | 10,183,000 | |
Less accumulated depreciation and amortization | -5,773,000 | -7,600,000 |
1,107,000 | 2,583,000 | |
Goodwill | 16,513,000 | 16,758,000 |
Deferred income taxes | 4,054,000 | 4,732,000 |
Other assets | 315,000 | 223,000 |
Total assets | 44,361,000 | 58,757,000 |
Current liabilities: | ||
Borrowings under line of credit | 496,000 | |
Current portion of long-term debt | 3,150,000 | |
Accounts payable and accrued expenses | 8,291,000 | 8,901,000 |
Accrued compensation and related benefits | 1,689,000 | 1,973,000 |
Deferred revenue | 3,309,000 | 4,227,000 |
Obligations under capital leases | 2,000 | 188,000 |
Income taxes payable | 796,000 | |
Total current liabilities | 16,937,000 | 16,085,000 |
Long-term liabilities: | ||
Term note payable | 15,563,000 | |
Obligations under capital leases | 147,000 | |
Other long-term liabilities | 205,000 | |
Total liabilities | 32,500,000 | 16,437,000 |
Stockholders’ equity: | ||
Convertible Preferred Stock, $0.01 par value; 1,300,537 shares authorized, 1,298,728 shares issued; 343,506 and 385,357 shares outstanding with an aggregate liquidation preference of $883,000 and $1,093,000 at March 31, 2015 and June 30, 2014, respectively (Note 8) | 3,000 | 4,000 |
Common stock, $0.01 par value; 80,000,000 shares authorized; issued and outstanding shares of 29,679,525 and 54,491,296 at March 31, 2015 and June 30, 2014, respectively | 297,000 | 545,000 |
Additional paid-in capital | 35,713,000 | 66,028,000 |
Accumulated deficit | -24,149,000 | -25,205,000 |
Accumulated other comprehensive income | -3,000 | 948,000 |
Total stockholders’ equity | 11,861,000 | 42,320,000 |
Total liabilities and stockholders’ equity | 44,361,000 | 58,757,000 |
Customer Lists [Member] | ||
Property and equipment: | ||
Customer list, net of accumulated amortization of $7,525,000 as of March 31, 2015 and $7,173,000 as of June 30, 2014 | 2,629,000 | 2,981,000 |
Trade Names [Member] | ||
Property and equipment: | ||
Customer list, net of accumulated amortization of $7,525,000 as of March 31, 2015 and $7,173,000 as of June 30, 2014 | $2,155,000 | $2,382,000 |
Consolidated_Balance_Sheets_Cu1
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
Accounts receivable, allowance | $208,000 | $211,000 |
Convertible Preferred Stock, shares authorized (in shares) | 1,300,537 | 1,300,537 |
Convertible Preferred Stock, par value (in dollars per share) | $0.01 | $0.01 |
Convertible Preferred Stock, shares issued (in shares) | 1,298,728 | 1,298,728 |
Convertible Preferred Stock, shares outstanding (in shares) | 343,506 | 385,357 |
Convertible Preferred Stock, aggregate liquidation preference | 883,000 | 1,093,000 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 80,000,000 | 80,000,000 |
Common stock, shares issued (in shares) | 29,679,525 | 54,491,296 |
Common stock, shares outstanding (in shares) | 29,679,525 | 54,491,296 |
Customer Lists [Member] | ||
Finite Lived Intangible Assets, Accumulated Amortization | 7,525,000 | 7,173,000 |
Trade Names [Member] | ||
Finite Lived Intangible Assets, Accumulated Amortization | $1,776,000 | $1,549,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
Revenues: | ||||
Product sales | $12,036,000 | $12,619,000 | $35,211,000 | $35,568,000 |
Service revenue | 5,079,000 | 5,180,000 | 15,066,000 | 15,044,000 |
Commission revenue | 6,359,000 | 6,947,000 | 16,394,000 | 16,194,000 |
23,474,000 | 24,746,000 | 66,671,000 | 66,806,000 | |
Cost of revenue: | ||||
Cost of product sales | 7,829,000 | 8,095,000 | 22,687,000 | 22,846,000 |
Cost of service revenue | 3,490,000 | 3,408,000 | 10,456,000 | 10,234,000 |
11,319,000 | 11,503,000 | 33,143,000 | 33,080,000 | |
Gross margin | 12,155,000 | 13,243,000 | 33,528,000 | 33,726,000 |
Other operating expenses: | ||||
Selling, general and administrative | 8,140,000 | 8,591,000 | 26,813,000 | 25,063,000 |
Depreciation and amortization | 338,000 | 448,000 | 1,101,000 | 1,319,000 |
8,478,000 | 9,039,000 | 27,914,000 | 26,382,000 | |
Operating income | 3,677,000 | 4,204,000 | 5,614,000 | 7,344,000 |
Interest expense | -189,000 | -40,000 | -319,000 | -152,000 |
Currency exchange losses | -307,000 | -117,000 | -732,000 | -224,000 |
Income from continuing operations before income taxes | 3,181,000 | 4,047,000 | 4,563,000 | 6,968,000 |
Income tax expense | -1,324,000 | -1,291,000 | -1,338,000 | -1,934,000 |
Income from continuing operations | 1,857,000 | 2,756,000 | 3,225,000 | 5,034,000 |
Loss from discontinued operations, net of tax | -528,000 | -684,000 | -1,520,000 | |
Loss on sale of discontinued operations, net of tax | -51,000 | -1,485,000 | -374,000 | |
Net income | 1,806,000 | 2,228,000 | 1,056,000 | 3,140,000 |
Preferred stock dividends | -22,000 | -27,000 | -74,000 | -82,000 |
Net income available to common stockholders | $1,784,000 | $2,201,000 | $982,000 | $3,058,000 |
Earnings (loss) per common share attributable to common shareholders – basic: | ||||
Income from continuing operations per common share (in dollars per share) | $0.06 | $0.05 | $0.08 | $0.09 |
Loss from discontinued operations per common share (in dollars per share) | ($0.01) | ($0.05) | ($0.04) | |
Earnings per common share attributable to common shareholders – basic (in dollars per share) | $0.06 | $0.04 | $0.03 | $0.05 |
Earnings (loss) per common share attributable to common shareholders – diluted: | ||||
Income from continuing operations per common share (in dollars per share) | $0.06 | $0.05 | $0.07 | $0.09 |
Loss from discontinued operations per common share (in dollars per share) | ($0.01) | ($0.05) | ($0.04) | |
Earnings per common share attributable to common shareholders – diluted (in dollars per share) | $0.06 | $0.04 | $0.02 | $0.05 |
Shares used in computing income per common share: | ||||
Weighted average shares used in computation - basic (in shares) | 29,597,525 | 54,264,017 | 41,021,199 | 54,122,392 |
Weighted average shares used in computation - diluted (in shares) | 32,035,527 | 57,237,327 | 43,291,682 | 56,934,949 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
Net income | $1,806,000 | $2,228,000 | $1,056,000 | $3,140,000 |
Other comprehensive income, net of tax: | ||||
Net change in cumulative foreign currency translation loss | -1,088,000 | -66,000 | -951,000 | -116,000 |
Comprehensive income | 718,000 | 2,162,000 | 105,000 | 3,024,000 |
Net income | $1,806,000 | $2,228,000 | $1,056,000 | $3,140,000 |
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, 2014 at Jun. 30, 2014 | $4,000 | $545,000 | $66,028,000 | ($25,205,000) | $948,000 | $42,320,000 |
Balance at July 1, 2014 (in shares) at Jun. 30, 2014 | 385,357 | 54,491,296 | ||||
Vesting of stock options granted to employees | 561,000 | 561,000 | ||||
Issuance of common stock upon the exercise of stock options (in shares) | 200,000 | 1,810,920 | ||||
Issuance of common stock upon the exercise of stock options | 2,000 | 153,000 | 155,000 | |||
Conversion of preferred stock into common stock (in shares) | -41,851 | 368,019 | ||||
Conversion of preferred stock into common stock | -1,000 | 4,000 | -3,000 | |||
Cashless exercise of stock options (in shares) | 470,155 | |||||
Cashless exercise of stock options | 5,000 | -5,000 | ||||
Stock repurchased through tender offer (in shares) | -25,849,945 | |||||
Stock repurchased through tender offer | -259,000 | -30,762,000 | -31,021,000 | |||
Payment of taxes upon the exercise of stock options | -185,000 | -185,000 | ||||
Payment of preferred stock dividends | -74,000 | -74,000 | ||||
Net change in cumulative foreign currency translation loss | -951,000 | -951,000 | ||||
Net income | 1,056,000 | 1,056,000 | ||||
Balance at March 31, 2015 at Mar. 31, 2015 | $3,000 | $297,000 | $35,713,000 | ($24,149,000) | ($3,000) | $11,861,000 |
Balance at March 31, 2015 (in shares) at Mar. 31, 2015 | 343,506 | 29,679,525 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Cash flows from operating activities | ||
Net income | $1,056,000 | $3,140,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Noncash portion of loss from discontinued operations | 229,000 | |
Loss on sale of discontinued operations, net of tax | 1,485,000 | |
Bad debt expense | 121,000 | 100,000 |
Depreciation and amortization | 1,101,000 | 1,421,000 |
Stock-based compensation | 561,000 | 238,000 |
Deferred income taxes | 751,000 | 782,000 |
Changes in operating assets and liabilities: | ||
Accounts receivable and other receivables | -251,000 | -4,734,000 |
Income tax receivable | 657,000 | -199,000 |
Inventory | -66,000 | -78,000 |
Prepaid expenses and other current assets | -39,000 | 560,000 |
Other assets | -92,000 | 14,000 |
Accounts payable and accrued expenses | -989,000 | 5,124,000 |
Accrued compensation and related benefits | -329,000 | 254,000 |
Deferred revenue | 558,000 | 11,000 |
Income taxes payable | -796,000 | 1,108,000 |
Other long-term liabilities | -205,000 | -291,000 |
Net cash provided by operating activities | 3,752,000 | 7,450,000 |
Cash flows from investing activities | ||
Net purchases of property and equipment | -276,000 | -689,000 |
Proceeds from the sale of discontinued operations | 500,000 | |
Net cash provided by (used in) investing activities | 224,000 | -689,000 |
Cash flows from financing activities | ||
Proceeds from borrowings under line of credit | 5,324,000 | 57,856,000 |
Repayment of borrowings under line of credit | -4,828,000 | -57,856,000 |
Proceeds from borrowings under term note | 21,000,000 | |
Repayment of borrowings under term note | -2,287,000 | |
Principal payment on capital lease obligations | -95,000 | -211,000 |
Stock repurchased through tender offer | -31,021,000 | |
Payment of taxes upon the exercise of stock options | -185,000 | |
Payment of preferred stock dividends | -74,000 | -82,000 |
Proceeds from the issuance of common stock upon the exercise of stock options | 155,000 | |
Proceeds from the issuance of common stock to employees | 327,000 | |
Net cash provided by (used in) financing activities | -12,011,000 | 34,000 |
Effect of exchange rate changes on cash | -649,000 | -143,000 |
Net change in cash | -8,684,000 | 6,652,000 |
Cash - beginning of period | 9,557,000 | 1,214,000 |
Cash - end of period | $873,000 | $7,866,000 |
Note_1_Organization_and_Basis_
Note 1 - Organization and Basis of Presentation | 9 Months Ended | ||
Mar. 31, 2015 | |||
Notes to Financial Statements | |||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. Organization and Basis of Presentation | ||
Rand Worldwide, Inc. 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 businesses, 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 four divisions: IMAGINiT Technologies (”IMAGINiT”), Rand 3D, Facilities Management, 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 Rand 3D division offers 3DExperience products from Dassault Systèmes which include CATIA, ENOVIA, SIMULIA, DELMIA, and DMU. Rand 3D also specializes in training solutions for Dassault Systèmes and PTC products including Pro/ENGINEER, CREO, and Windchill. | |||
The Facilities Management Division offers ARCHIBUS products for facilities management software for space planning, strategic planning, and lease/property administration, and provides a full range of training, consulting and support services for the ARCHIBUS products. | |||
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, 2014. Operating results for the three and nine months ended March 31, 2015 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, 2015 | |
Notes to Financial Statements | |
Cash Flow, Supplemental Disclosures [Text Block] | 2. Supplemental Disclosure of Cash Flow Information |
The Company paid interest of approximately $172,000 and $5,000 during the three months ended March 31, 2015 and 2014, respectively, and approximately $231,000 and $28,000 during the nine months ended March 31, 2015 and 2014, respectively. The Company also paid federal and state income taxes of approximately $428,000 and $57,000 during the three months ended March 31, 2015 and 2014, respectively, and approximately $2.2 million and $142,000 during the nine months ended March 31, 2015 and 2014, respectively. The majority of taxes paid during the nine months ended March 31, 2015 were federal income taxes. During the nine months ended March 31, 2014, the Company paid no Federal income taxes because the Company utilized net operating losses to reduce its federal tax liability; taxes paid during that period were state income taxes. |
Note_3_Employee_Stock_Compensa
Note 3 - Employee Stock Compensation Plans | 9 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Notes to Financial Statements | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [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 at an exercise price of not less than the fair market value of the common stock on the date of grant, 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. | |||||||||||||||||||||
On September 29, 2014, the Company’s Board of Directors approved a planned recapitalization of its balance sheet in order to provide liquidity to its shareholders and to maximize shareholder value. This planned recapitalization process was accomplished through a tender offer which was concluded on November 3, 2014 whereby the Company purchased 25,849,945 shares of its common stock from its shareholders for a price of $1.20 per share. In conjunction with the tender offer, the Company’s Board of Directors voted to accelerate the vesting of all unvested stock options effective September 29, 2014. The Board of Directors also voted to provide option holders the ability to exercise their options under a net-settlement program, whereby the Company issued common shares for the aggregate difference between the exercise price and the $1.20 tender offer price, minus required tax withholdings. There were 1,810,920 options exercised under this program. Stock compensation expense for the nine months ended March 31, 2015 was $561,000 and includes $476,000 of expense due to the accelerated vesting of options. For the nine months ended March 31, 2014, total stock compensation expense was $238,000. | |||||||||||||||||||||
A summary of stock option activity during the nine months ended March 31, 2015 and related information is included in the table below: | |||||||||||||||||||||
Options | Weighted- | Aggregate | |||||||||||||||||||
Average | Intrinsic | ||||||||||||||||||||
Exercise Price | Value | ||||||||||||||||||||
Outstanding at July 1, 2014 | 3,311,745 | $ | 0.83 | ||||||||||||||||||
Granted | 36,000 | 1.72 | |||||||||||||||||||
Exercised | (2,010,920 | ) | 0.71 | ||||||||||||||||||
Forfeited | (43,500 | ) | 0.8 | ||||||||||||||||||
Expired | — | — | |||||||||||||||||||
Outstanding at March 31, 2015 | 1,293,325 | $ | 0.92 | $ | 1,483,000 | ||||||||||||||||
Exercisable at March 31, 2015 | 1,269,325 | $ | 0.89 | $ | 1,474,000 | ||||||||||||||||
Weighted-average remaining contractual life of shares outstanding | 6.6 Years | ||||||||||||||||||||
Weighted-average remaining contractual life of shares exercisable | 6.6 Years | ||||||||||||||||||||
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, 2015 ranged from $0.50 to $1.72 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 | Exercisable | Exercisable | ||||||||||||||||||
$0.50 | – | 0.75 | 347,975 | $ | 0.7 | 6.1 years | 347,975 | $ | 0.7 | 6.1 years | |||||||||||
0.76 | – | 1 | 744,100 | 0.89 | 7.2 years | 744,100 | 0.89 | 7.2 years | |||||||||||||
1.01 | – | 1.72 | 201,250 | 1.42 | 5.7 years | 177,250 | 1.38 | 5.1 years | |||||||||||||
1,293,325 | 1,269,325 | ||||||||||||||||||||
Assuming that no additional share-based payments are granted after March 31, 2015 | |||||||||||||||||||||
, $30,000 of compensation expense will be recognized in the consolidated statements of operations over a weighted-average period of 1.5 years. |
Note_4_Borrowings_Under_Line_o
Note 4 - Borrowings Under Line of Credit | 9 Months Ended |
Mar. 31, 2015 | |
Notes to Financial Statements | |
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 (“PNC”). The interest rate was the “Eurodollar Rate”, which was calculated by using the LIBOR rate, plus a margin of 2.0%. The Company had no outstanding borrowings from PNC under its credit line of as of March 31, 2015 or June 30, 2014. The line expired on November 30, 2014. | |
On November 4, 2014, the Company entered into two credit facilities with JP Morgan Chase Bank National Association (“Chase”) which replaced the Company’s existing facilities with PNC. The first is a five-year $10 million line of credit, secured by all assets of the Company with borrowing levels subject to borrowing base limits. The interest rate on the line of credit is the LIBO rate, plus a margin of 2.5%. The second facility is a five-year $21 million term loan with an interest rate equal to the LIBO rate, plus a margin of 3.15%. The principal of this loan is amortized over five years with quarterly repayments of $787,500 for the first two years, $1,050,000 for the third year, and $1,312,500 for the fourth and fifth years. The new loans contain certain financial covenants including a maximum leverage ratio, a maximum fixed charge coverage ratio, and minimum adjusted earnings before interest, taxes, depreciation and amortization. The Company was in compliance with the loans’ financial covenants during the nine months ended March 31, 2015. The Company had | |
$496,000 of outstanding borrowings from Chase under its line of credit as of March 31, 2015. |
Note_5_Obligations_Under_Capit
Note 5 - Obligations Under Capital Leases | 9 Months Ended |
Mar. 31, 2015 | |
Notes to Financial Statements | |
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 $2,000 and $335,000 as of March 31, 2015 and June 30, 2014, respectively. |
Note_6_Income_Taxes
Note 6 - Income Taxes | 9 Months Ended |
Mar. 31, 2015 | |
Notes to Financial Statements | |
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, and a portion of its foreign, 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, 2015 | |||||||||
Notes to Financial Statements | |||||||||
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 share is derived by dividing net earnings available to common stockholders by the weighted-average number of shares outstanding after adjusting for the dilutive effect of common shares that could be issued upon the exercise or conversion of common stock equivalents, such as stock options and convertible preferred stock. As of March 31, 2015, 3,021,093 shares of common stock were issuable upon the conversion or exercise of options and preferred stock. For the three months ended March 31, 2015 and 2014, there were 0 and 213,500 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, 2015 and 2014, there were 102,250 and 313,500 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, 2015 and 2014: | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Numerator for basic and diluted earnings per share: | |||||||||
Net income from continuing operations | $ | 1,857,000 | $ | 2,756,000 | |||||
Payment of preferred stock dividends | (22,000 | ) | (27,000 | ) | |||||
Net income from continuing operations available to common stockholders | 1,835,000 | 2,729,000 | |||||||
Loss from discontinued operations, net of tax | — | (528,000 | ) | ||||||
Loss on sale of discontinued operations, net of tax | (51,000 | ) | |||||||
Net income available to common stockholders | $ | 1,784,000 | $ | 2,201,000 | |||||
Weighted average shares used in computing basic net income per share: | 29,597,525 | 54,264,017 | |||||||
Assumed conversion of preferred stock | 1,727,768 | 2,095,784 | |||||||
Effect of outstanding stock options | 710,234 | 877,526 | |||||||
Weighted average shares used in computing diluted net income per share: | 32,035,527 | 57,237,327 | |||||||
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 | $ | 0.06 | $ | 0.04 | |||||
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 | $ | 0.06 | $ | 0.04 | |||||
Nine Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Numerator for basic and diluted earnings per share: | |||||||||
Net income from continuing operations | $ | 3,225,000 | $ | 5,034,000 | |||||
Payment of preferred stock dividends | (74,000 | ) | (82,000 | ) | |||||
Net income from continuing operations available to common stockholders | 3,151,000 | 4,952,000 | |||||||
Loss from discontinued operations, net of tax | (684,000 | ) | (1,520,000 | ) | |||||
Loss on sale of discontinued operations, net of tax | (1,485,000 | ) | (374,000 | ) | |||||
Net income available to common stockholders | $ | 982,000 | $ | 3,058,000 | |||||
Weighted average shares used in computing basic net income per share: | 41,021,199 | 54,122,392 | |||||||
Assumed conversion of preferred stock | 1,727,768 | 2,095,784 | |||||||
Effect of outstanding stock options | 542,715 | 716,773 | |||||||
Weighted average shares used in computing diluted net income per share: | 43,291,682 | 56,934,949 | |||||||
Earnings per common share attributable to common stockholders – basic | |||||||||
Income from continuing operations per common share | $ | 0.08 | $ | 0.09 | |||||
Loss from discontinued operations per common share | (0.05 | ) | (0.04 | ) | |||||
Earnings per common share attributable to common stockholders – basic | $ | 0.03 | $ | 0.05 | |||||
Earnings per common share attributable to common stockholders – diluted | |||||||||
Income from continuing operations per common share | $ | 0.07 | $ | 0.09 | |||||
Loss from discontinued operations per common share | (0.05 | ) | (0.04 | ) | |||||
Earnings per common share attributable to common stockholders – diluted | $ | 0.02 | $ | 0.05 |
Note_8_Preferred_Stock
Note 8 - Preferred Stock | 9 Months Ended |
Mar. 31, 2015 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 8. Preferred Stock |
Convertible Preferred Stock | |
At March 31, 2015, 342,829 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, 2015, 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, 2015, 677 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, 2015 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, 2015 | |||||||||||||||||
Notes to Financial Statements | |||||||||||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 9 | ||||||||||||||||
. Discontinued Operations | |||||||||||||||||
As part of the Company’s strategy to focus on its core strengths, the Company sold its Rand Secure Data archiving business during the fiscal quarter ended September 30, 2014. Thus, the results of operations and cash flows from the data archiving business have been classified as discontinued operations for all periods presented. | |||||||||||||||||
During the fourth quarter of 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, | ||||||||||||||||
2015 | 2014 | 201 | 2014 | ||||||||||||||
5 | |||||||||||||||||
Revenues | $ | — | $ | 577,000 | $ | 915,000 | $ | 1,523,000 | |||||||||
Loss from discontinued operations, net of tax | — | 528,000 | 684,000 | 1,520,000 | |||||||||||||
Loss on sale of discontinued operations, net of tax | 51,000 | — | 1,485,000 | 374,000 |
Note_10_Operating_Leases
Note 10 - Operating Leases | 9 Months Ended | ||||
Mar. 31, 2015 | |||||
Notes to Financial Statements | |||||
Leases of Lessee Disclosure [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, 2015: | |||||
Twelve months ending March 31: | |||||
2016 | $ | 2,270,000 | |||
2017 | 1,753,000 | ||||
2018 | 1,338,000 | ||||
2019 | 801,000 | ||||
2020 | 473,000 | ||||
Thereafter | 155,000 | ||||
Total minimum lease payments | $ | 6,790,000 |
Note_11_Capital_Leases
Note 11 - Capital Leases | 9 Months Ended | ||||
Mar. 31, 2015 | |||||
Notes to Financial Statements | |||||
Capital Leases in Financial Statements of Lessee 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 $2,000 as of March 31, 2015. Payments for the leases are made either monthly or quarterly through May 2015 and depreciation expense on this equipment was approximately $57,000 as of March 31, 2015. Future minimum payments consisted of the following at March 31, 2015: | |||||
Twelve months ending March 31, 2016 | $ | 2,000 | |||
Less: | |||||
Taxes | — | ||||
Imputed interest | — | ||||
Present value of future minimum lease payments | $ | 2,000 |
Significant_Accounting_Policie
Significant Accounting Policies (Policies) | 9 Months Ended | ||
Mar. 31, 2015 | |||
Accounting Policies [Abstract] | |||
Basis of Accounting, Policy [Policy Text Block] | 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, 2014. Operating results for the three and nine months ended March 31, 2015 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, 2015 | |||||||||||||||||||||
Notes Tables | |||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Options | Weighted- | Aggregate | ||||||||||||||||||
Average | Intrinsic | ||||||||||||||||||||
Exercise Price | Value | ||||||||||||||||||||
Outstanding at July 1, 2014 | 3,311,745 | $ | 0.83 | ||||||||||||||||||
Granted | 36,000 | 1.72 | |||||||||||||||||||
Exercised | (2,010,920 | ) | 0.71 | ||||||||||||||||||
Forfeited | (43,500 | ) | 0.8 | ||||||||||||||||||
Expired | — | — | |||||||||||||||||||
Outstanding at March 31, 2015 | 1,293,325 | $ | 0.92 | $ | 1,483,000 | ||||||||||||||||
Exercisable at March 31, 2015 | 1,269,325 | $ | 0.89 | $ | 1,474,000 | ||||||||||||||||
Weighted-average remaining contractual life of shares outstanding | 6.6 Years | ||||||||||||||||||||
Weighted-average remaining contractual life of shares exercisable | 6.6 Years | ||||||||||||||||||||
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 | Exercisable | Exercisable | ||||||||||||||||||
$0.50 | – | 0.75 | 347,975 | $ | 0.7 | 6.1 years | 347,975 | $ | 0.7 | 6.1 years | |||||||||||
0.76 | – | 1 | 744,100 | 0.89 | 7.2 years | 744,100 | 0.89 | 7.2 years | |||||||||||||
1.01 | – | 1.72 | 201,250 | 1.42 | 5.7 years | 177,250 | 1.38 | 5.1 years | |||||||||||||
1,293,325 | 1,269,325 |
Note_7_Earnings_Per_Share_Tabl
Note 7 - Earnings Per Share (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Notes Tables | |||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended March 31, | ||||||||
2015 | 2014 | ||||||||
Numerator for basic and diluted earnings per share: | |||||||||
Net income from continuing operations | $ | 1,857,000 | $ | 2,756,000 | |||||
Payment of preferred stock dividends | (22,000 | ) | (27,000 | ) | |||||
Net income from continuing operations available to common stockholders | 1,835,000 | 2,729,000 | |||||||
Loss from discontinued operations, net of tax | — | (528,000 | ) | ||||||
Loss on sale of discontinued operations, net of tax | (51,000 | ) | |||||||
Net income available to common stockholders | $ | 1,784,000 | $ | 2,201,000 | |||||
Weighted average shares used in computing basic net income per share: | 29,597,525 | 54,264,017 | |||||||
Assumed conversion of preferred stock | 1,727,768 | 2,095,784 | |||||||
Effect of outstanding stock options | 710,234 | 877,526 | |||||||
Weighted average shares used in computing diluted net income per share: | 32,035,527 | 57,237,327 | |||||||
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 | $ | 0.06 | $ | 0.04 | |||||
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 | $ | 0.06 | $ | 0.04 | |||||
Nine Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Numerator for basic and diluted earnings per share: | |||||||||
Net income from continuing operations | $ | 3,225,000 | $ | 5,034,000 | |||||
Payment of preferred stock dividends | (74,000 | ) | (82,000 | ) | |||||
Net income from continuing operations available to common stockholders | 3,151,000 | 4,952,000 | |||||||
Loss from discontinued operations, net of tax | (684,000 | ) | (1,520,000 | ) | |||||
Loss on sale of discontinued operations, net of tax | (1,485,000 | ) | (374,000 | ) | |||||
Net income available to common stockholders | $ | 982,000 | $ | 3,058,000 | |||||
Weighted average shares used in computing basic net income per share: | 41,021,199 | 54,122,392 | |||||||
Assumed conversion of preferred stock | 1,727,768 | 2,095,784 | |||||||
Effect of outstanding stock options | 542,715 | 716,773 | |||||||
Weighted average shares used in computing diluted net income per share: | 43,291,682 | 56,934,949 | |||||||
Earnings per common share attributable to common stockholders – basic | |||||||||
Income from continuing operations per common share | $ | 0.08 | $ | 0.09 | |||||
Loss from discontinued operations per common share | (0.05 | ) | (0.04 | ) | |||||
Earnings per common share attributable to common stockholders – basic | $ | 0.03 | $ | 0.05 | |||||
Earnings per common share attributable to common stockholders – diluted | |||||||||
Income from continuing operations per common share | $ | 0.07 | $ | 0.09 | |||||
Loss from discontinued operations per common share | (0.05 | ) | (0.04 | ) | |||||
Earnings per common share attributable to common stockholders – diluted | $ | 0.02 | $ | 0.05 |
Note_9_Discontinued_Operations1
Note 9 - Discontinued Operations (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Notes Tables | |||||||||||||||||
Schedule Of Entities Reclassified As Discontinued Operations [Table Text Block] | Three months ended | Nine months ended | |||||||||||||||
March 31, | March 31, | ||||||||||||||||
2015 | 2014 | 201 | 2014 | ||||||||||||||
5 | |||||||||||||||||
Revenues | $ | — | $ | 577,000 | $ | 915,000 | $ | 1,523,000 | |||||||||
Loss from discontinued operations, net of tax | — | 528,000 | 684,000 | 1,520,000 | |||||||||||||
Loss on sale of discontinued operations, net of tax | 51,000 | — | 1,485,000 | 374,000 |
Note_10_Operating_Leases_Table
Note 10 - Operating Leases (Tables) | 9 Months Ended | ||||
Mar. 31, 2015 | |||||
Notes Tables | |||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Twelve months ending March 31: | ||||
2016 | $ | 2,270,000 | |||
2017 | 1,753,000 | ||||
2018 | 1,338,000 | ||||
2019 | 801,000 | ||||
2020 | 473,000 | ||||
Thereafter | 155,000 | ||||
Total minimum lease payments | $ | 6,790,000 |
Note_11_Capital_Leases_Tables
Note 11 - Capital Leases (Tables) | 9 Months Ended | ||||
Mar. 31, 2015 | |||||
Notes Tables | |||||
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | Twelve months ending March 31, 2016 | $ | 2,000 | ||
Less: | |||||
Taxes | — | ||||
Imputed interest | — | ||||
Present value of future minimum lease payments | $ | 2,000 |
Note_2_Supplemental_Disclosure1
Note 2 - Supplemental Disclosure of Cash Flow Information (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
Income Taxes Paid | $428,000 | $57,000 | $2,200,000 | $142,000 |
Interest Paid | 172,000 | 5,000 | 231,000 | 28,000 |
Domestic Tax Authority [Member] | ||||
Income Taxes Paid | $0 |
Note_3_Employee_Stock_Compensa2
Note 3 - Employee Stock Compensation Plans (Details Textual) (USD $) | 0 Months Ended | 9 Months Ended | ||
Nov. 03, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Nov. 07, 2012 | |
Stock Repurchased and Retired During Period, Shares | 25,849,945 | |||
Treasury Stock Acquired, Average Cost Per Share | $1.20 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 1,810,920 | |||
Allocated Share-based Compensation Expense | $561,000 | $238,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | 30,000 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 182 days | |||
Omnibus Equity Compensation Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,000,000 | |||
Avatech Solutions Inc 2002 Stock Option Plan The Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 7,800,000 | |||
Employee Stock Purchase Plan The ESPP [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $1.72 | |||
Compensation Expense Due To Accelerated Vesting Options [Member] | ||||
Allocated Share-based Compensation Expense | $476,000 | |||
Expense For Vesting Of Common Stock Options Granted By Pre-Merger Rand Worldwide [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $0.50 |
Note_3_Summary_of_Stock_Option
Note 3 - Summary of Stock Option Activity and Related Information (Details) (USD $) | 9 Months Ended |
Mar. 31, 2015 | |
Outstanding at July 1, 2014 (in shares) | 3,311,745 |
Outstanding at July 1, 2014 (in dollars per share) | $0.83 |
Granted (in shares) | 36,000 |
Granted (in dollars per share) | $1.72 |
Exercised (in shares) | -1,810,920 |
Exercised (in dollars per share) | ($0.71) |
Forfeited (in shares) | -43,500 |
Forfeited (in dollars per share) | $0.80 |
Outstanding at March 31, 2015 (in shares) | 1,293,325 |
Outstanding at March 31, 2015 (in dollars per share) | $0.92 |
Outstanding at March 31, 2015 | $1,483,000 |
Exercisable at March 31, 2015 (in shares) | 1,269,325 |
Exercisable at March 31, 2015 (in dollars per share) | $0.89 |
Exercisable at March 31, 2015 | $1,474,000 |
Weighted-average remaining contractual life of shares outstanding | 6 years 219 days |
Weighted-average remaining contractual life of shares exercisable | 6 years 219 days |
Note_3_Exercise_Price_for_Opti
Note 3 - Exercise Price for Options Outstanding (Details) (USD $) | 9 Months Ended |
Mar. 31, 2015 | |
Options outstanding (in shares) | 1,293,325 |
Options exercisable (in shares) | 1,269,325 |
Price Range 1 [Member] | |
Lower exercise price (in dollars per share) | $0.50 |
Upper exercise price (in dollars per share) | $0.75 |
Options outstanding (in shares) | 347,975 |
Weighted average exercise price of options outstanding (in dollars per share) | $0.70 |
Weighted average remaining contractual life of options outstanding | 6 years 36 days |
Options exercisable (in shares) | 347,975 |
Weighted average exercise price of options exercisable (in dollars per share) | $0.70 |
Weighted average remaining contractual life of options exercisable | 6 years 36 days |
Price Range 2 [Member] | |
Lower exercise price (in dollars per share) | $0.76 |
Upper exercise price (in dollars per share) | $1 |
Options outstanding (in shares) | 744,100 |
Weighted average exercise price of options outstanding (in dollars per share) | $0.89 |
Weighted average remaining contractual life of options outstanding | 7 years 73 days |
Options exercisable (in shares) | 744,100 |
Weighted average exercise price of options exercisable (in dollars per share) | $0.89 |
Weighted average remaining contractual life of options exercisable | 7 years 73 days |
Price Range 3 [Member] | |
Lower exercise price (in dollars per share) | $1.01 |
Upper exercise price (in dollars per share) | $1.72 |
Options outstanding (in shares) | 201,250 |
Weighted average exercise price of options outstanding (in dollars per share) | $1.42 |
Weighted average remaining contractual life of options outstanding | 5 years 255 days |
Options exercisable (in shares) | 177,250 |
Weighted average exercise price of options exercisable (in dollars per share) | $1.38 |
Weighted average remaining contractual life of options exercisable | 5 years 36 days |
Note_4_Borrowings_Under_Line_o1
Note 4 - Borrowings Under Line of Credit (Details Textual) (USD $) | 1 Months Ended | 0 Months Ended | ||
Feb. 29, 2012 | Nov. 04, 2014 | Mar. 31, 2015 | Jun. 30, 2014 | |
PNC Bank National Association [Member] | Standby Letters of Credit [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,000,000 | |||
PNC Bank National Association [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | |||
PNC Bank National Association [Member] | ||||
Long-term Line of Credit | 0 | 0 | ||
Line of Credit Facility, Maximum Borrowing Capacity | 8,000,000 | |||
JP Morgan Chase National Association [Member] | Fourth Year [Member] | ||||
Line of Credit Facility, Periodic Payment, Principal | 1,312,500 | |||
JP Morgan Chase National Association [Member] | First Year [Member] | ||||
Line of Credit Facility, Periodic Payment, Principal | 787,500 | |||
JP Morgan Chase National Association [Member] | Second Year [Member] | ||||
Line of Credit Facility, Periodic Payment, Principal | 787,500 | |||
JP Morgan Chase National Association [Member] | Third Year [Member] | ||||
Line of Credit Facility, Periodic Payment, Principal | 1,050,000 | |||
JP Morgan Chase National Association [Member] | Fifth Year [Member] | ||||
Line of Credit Facility, Periodic Payment, Principal | 1,312,500 | |||
JP Morgan Chase National Association [Member] | First Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||
JP Morgan Chase National Association [Member] | First Line of Credit [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 10,000,000 | |||
Debt Instrument, Term | 5 years | |||
JP Morgan Chase National Association [Member] | Second Line of Credit [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument, Basis Spread on Variable Rate | 3.15% | |||
JP Morgan Chase National Association [Member] | Second Line of Credit [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 21,000,000 | |||
Debt Instrument, Term | 5 years | |||
JP Morgan Chase National Association [Member] | ||||
Long-term Line of Credit | $496,000 | |||
Number of Credit Facilities | 2 |
Note_5_Obligations_Under_Capit1
Note 5 - Obligations Under Capital Leases (Details Textual) (Computer Equipment [Member], USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
Computer Equipment [Member] | ||
Capital Lease Obligations | $2,000 | $335,000 |
Note_7_Earnings_Per_Share_Deta
Note 7 - Earnings Per Share (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
Common Stock, Capital Shares Reserved for Future Issuance | 3,021,093 | 3,021,093 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 213,500 | 102,250 | 313,500 |
Note_7_Computations_of_Basic_a
Note 7 - Computations of Basic and Diluted Loss Per Common Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
Numerator for basic and diluted earnings per share: | ||||
Net income from continuing operations | $1,857,000 | $2,756,000 | $3,225,000 | $5,034,000 |
Payment of preferred stock dividends | -22,000 | -27,000 | -74,000 | -82,000 |
Net income from continuing operations available to common stockholders | 1,784,000 | 2,201,000 | 982,000 | 3,058,000 |
Loss from discontinued operations, net of tax | -528,000 | -684,000 | -1,520,000 | |
Loss on sale of discontinued operations, net of tax | -51,000 | -1,485,000 | -374,000 | |
Weighted average shares used in computation - basic (in shares) | 29,597,525 | 54,264,017 | 41,021,199 | 54,122,392 |
Assumed conversion of preferred stock (in shares) | 1,727,768 | 2,095,784 | 1,727,768 | 2,095,784 |
Effect of outstanding stock options (in shares) | 710,234 | 877,526 | 542,715 | 716,773 |
Weighted average shares used in computation - diluted (in shares) | 32,035,527 | 57,237,327 | 43,291,682 | 56,934,949 |
Earnings (loss) per common share attributable to common shareholders b basic: | ||||
Income from continuing operations per common share (in dollars per share) | $0.06 | $0.05 | $0.08 | $0.09 |
Loss from discontinued operations per common share (in dollars per share) | ($0.01) | ($0.05) | ($0.04) | |
Earnings per common share attributable to common stockholders b basic (in dollars per share) | $0.06 | $0.04 | $0.03 | $0.05 |
Earnings (loss) per common share attributable to common shareholders b diluted: | ||||
Income from continuing operations per common share (in dollars per share) | $0.06 | $0.05 | $0.07 | $0.09 |
Loss from discontinued operations per common share (in dollars per share) | ($0.01) | ($0.05) | ($0.04) | |
Earnings per common share attributable to common shareholders b diluted (in dollars per share) | $0.06 | $0.04 | $0.02 | $0.05 |
Continuing Operations [Member] | ||||
Numerator for basic and diluted earnings per share: | ||||
Net income from continuing operations available to common stockholders | $1,835,000 | $2,729,000 | $3,151,000 | $4,952,000 |
Note_8_Preferred_Stock_Details
Note 8 - Preferred Stock (Details Textual) (USD $) | 9 Months Ended | |
Mar. 31, 2015 | Jun. 30, 2014 | |
Preferred Stock, Shares Outstanding | 343,506 | 385,357 |
Series D Preferred Stock [Member] | ||
Preferred Stock, Shares Outstanding | 342,829 | |
Preferred Stock, Redemption Price Per Share | $0.30 | |
Number Of Votes | 1 | |
Preferred Stock, Dividend Rate, Percentage | 10.00% | |
Convertible Preferred Stock Period Preeding Conversion | 120 days | |
Convertible Preferred Stock Price Trigger | $2.25 | |
Convertible Preferred Stock Threshold Consecutive Trading Days | 60 days | |
Convertible Preferred Stock, Shares Issued upon Conversion | 2 | |
Preferred Stock, Liquidation Preference Per Share | $0.60 | |
Series E Preferred Stock [Member] | ||
Preferred Stock, Shares Outstanding | 677 | |
Preferred Stock, Redemption Price Per Share | $0.65 | |
Number Of Votes | 1 | |
Preferred Stock, Dividend Rate, Percentage | 10.00% | |
Convertible Preferred Stock Period Preeding Conversion | 120 days | |
Convertible Preferred Stock Price Trigger | $2.25 | |
Convertible Preferred Stock Threshold Consecutive Trading Days | 60 days | |
Convertible Preferred Stock, Shares Issued upon Conversion | 1,538.50 | |
Preferred Stock, Liquidation Preference Per Share | $0.65 |
Note_9_Financial_Results_of_En
Note 9 - Financial Results of Entities Which Have Been Reclassified as Discontinued Operations (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | |
Revenues | $577,000 | $915,000 | $1,523,000 | |
Loss from discontinued operations, net of tax | 528,000 | 684,000 | 1,520,000 | |
Loss on sale of discontinued operations, net of tax | $51,000 | $1,485,000 | $374,000 |
Note_10_Future_Minimum_Lease_P
Note 10 - Future Minimum Lease Payments Under Operating Leases (Details) (USD $) | Mar. 31, 2015 |
2016 | $2,270,000 |
2017 | 1,753,000 |
2018 | 1,338,000 |
2019 | 801,000 |
2020 | 473,000 |
Thereafter | 155,000 |
Total minimum lease payments | $6,790,000 |
Note_11_Capital_Leases_Details
Note 11 - Capital Leases (Details Textual) (USD $) | Mar. 31, 2015 | Jun. 30, 2014 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $5,773,000 | $7,600,000 |
Computer Equipment [Member] | ||
Capital Lease Obligations | 2,000 | 335,000 |
Assets Held under Capital Leases [Member] | ||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $57,000 |
Note_11_Future_Minimum_Capital
Note 11 - Future Minimum Capital Lease Payments (Details) (Computer Equipment [Member], USD $) | Mar. 31, 2015 |
Computer Equipment [Member] | |
Twelve months ending March 31, 2016 | $2,000 |
Taxes | 0 |
Imputed interest | 0 |
Present value of future minimum lease payments | $2,000 |