Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Sep. 30, 2017 | Nov. 01, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | AUTHENTIDATE HOLDING CORP | |
Entity Central Index Key | 885,074 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | ADAT | |
Entity Common Stock, Shares Outstanding | 7,249,370 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2017 | Jun. 30, 2017 |
Current assets | ||
Cash and cash equivalents | $ 733,816 | $ 1,121,763 |
Restricted cash | 0 | 120,695 |
Accounts receivable, net | 815,519 | 1,020,988 |
Inventory, net | 377,610 | 347,750 |
Prepaid expenses and other current assets | 86,089 | 58,711 |
Total current assets | 2,013,034 | 2,669,907 |
Property and equipment, net | 1,980,959 | 2,203,543 |
Other assets | ||
Security deposits | 10,211 | 10,211 |
Deferred tax asset | 11,848,017 | 11,848,017 |
Total assets | 15,852,221 | 16,731,678 |
Current liabilities | ||
Accounts payable | 1,660,405 | 2,177,722 |
Accrued expenses | 2,697,713 | 2,168,090 |
Accrued commissions | 536,142 | 427,627 |
Accrued dividends | 730,678 | 644,979 |
Deferred rent | 156,158 | 141,833 |
Related party notes payable | 2,545,199 | 2,545,199 |
Derivative liabilities | 477,749 | 551,040 |
Total current liabilities | 8,804,044 | 8,656,490 |
Deferred rent | 67,500 | 45,000 |
Total liabilities | 8,871,544 | 8,701,490 |
Commitments and contingencies | ||
Shareholders’ equity | ||
Preferred stock, $.10 par value; 5,000,000 shares authorized, Series D, 605,000 shares and Series E 25,000 shares issued and outstanding at September 30, 2017 , and June 30, 2017, respectively | 63,000 | 63,000 |
Common stock, $.001 par value; 190,000,000 shares authorized, 7,249,370 shares issued and outstanding on September 30, 2017, and June 30, 2017 , respectively | 14,402 | 8,938 |
Additional paid-in capital | 44,463,577 | 44,307,479 |
(Accumulated deficit) | (37,560,302) | (36,349,229) |
Total shareholders’ equity | 6,980,677 | 8,030,188 |
Total liabilities and shareholders’ equity | $ 15,852,221 | $ 16,731,678 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2017 | Jun. 30, 2017 |
Preferred stock, par value | $ 0.10 | $ 0.10 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 190,000,000 | 190,000,000 |
Common stock, shares issued | 7,249,370 | 7,249,370 |
Common stock, shares outstanding | 7,249,370 | 7,249,370 |
Series D Preferred Stock [Member] | ||
Preferred stock, shares issued | 605,000 | 605,000 |
Preferred stock, shares outstanding | 605,000 | 605,000 |
Series E Preferred Stock [Member] | ||
Preferred stock, shares issued | 25,000 | 25,000 |
Preferred stock, shares outstanding | 25,000 | 25,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Net revenues | ||
Fees for services | $ 3,110,382 | $ 5,691,296 |
Hosted software services | 243,020 | 346,934 |
Telehealth products and services | 4,650 | 11,845 |
Total net revenues | 3,358,052 | 6,050,075 |
Operating expenses | ||
Cost of revenues | 1,128,576 | 1,006,496 |
Write down of inventory | 0 | 237,674 |
Selling, general and administrative | 3,072,428 | 3,492,475 |
Share based compensation | 68,785 | 89,526 |
Depreciation and amortization | 222,584 | 408,663 |
Total operating expenses | 4,492,373 | 5,234,834 |
Operating income (loss) | (1,134,321) | 815,241 |
Other (expense) income | ||
Interest | (27,349) | (278,593) |
Change in fair value of derivative liabilities | 73,291 | (486,219) |
Other | (38,144) | 0 |
Total other (expense) income | 7,798 | (764,812) |
Income (loss) before provision for income taxes | (1,126,523) | 50,429 |
Benefit for income taxes | 0 | 45,404 |
Net income (loss) | (1,126,523) | 95,833 |
Less: preferred dividends | (84,550) | (100,624) |
Net loss available to common shareholders | $ (1,211,073) | $ (4,791) |
Loss per share: | ||
Basic loss per common share | $ (0.17) | $ 0 |
Diluted loss per common share | $ (0.17) | $ 0 |
Weighted average number of common shares outstanding: | ||
Basic | 7,249,370 | 5,772,258 |
Diluted | 7,249,370 | 5,772,258 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash Flow from operating activities | ||
Net (loss) income | $ (1,126,523) | $ 95,833 |
Adjustments to reconcile net income (loss) to net cash used by operating activities | ||
Change in fair value of derivative liabilities | (73,291) | 486,219 |
Write off of inventory | 0 | 237,674 |
Depreciation and amortization | 222,584 | 402,574 |
Deferred taxes | 0 | (45,404) |
Share based compensation | 68,785 | 89,526 |
Changes in assets and liabilities | ||
Restricted cash | 120,695 | 0 |
Accounts receivable | 205,469 | (424,904) |
Inventory | (29,863) | (144,668) |
Prepaid expenses and other current assets | (27,378) | (34,380) |
Accounts payable | (472,295) | (190,810) |
Accrued expenses | 615,322 | (541,908) |
Accrued commissions | 108,515 | (183,659) |
Deferred rent | 0 | (19,682) |
Net cash (used in) by operating activities | (387,980) | (273,589) |
Cash flows from investing activities | ||
Purchases of property and equipment | 0 | (15,449) |
Disposal of fixed assets | 33 | 0 |
Net cash (used in) provided by investing activities | 33 | (15,449) |
Cash flows from financing activities | ||
Repayments of notes payable | 0 | (525,000) |
Net cash used in financing activities | 0 | (525,000) |
Net decrease in cash | (387,947) | (814,038) |
Cash beginning of period | 1,121,763 | 1,414,706 |
Cash end of period | 733,816 | 600,668 |
Supplemental disclosure of cash paid for: | ||
Interest paid | 0 | 105,000 |
Income taxes paid | 76,316 | 0 |
Non-cash investing and financing activities | ||
Non-cash preferred dividends | 84,550 | 100,624 |
Earn-out common dividends paid in stock | $ 0 | $ 5,472,598 |
Description of Business, Revers
Description of Business, Reverse Merger and Liquidity | 3 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Basis of Presentation [Text Block] | 1. Description of Business, Reverse Merger and Liquidity Business Authentidate Holding Corp. (“AHC”) and its subsidiaries primarily provides an array of clinical testing services to health care professionals through its wholly-owned subsidiary, Peachstate Health Management, LLC d/b/a AEON Clinical Laboratories (“AEON”). AHC also continues to provide its legacy secure web-based revenue cycle management applications and telehealth products and services that enable healthcare organizations to increase revenues, improve productivity, reduce costs, coordinate care for patents and enhance related administrative and clinical workflows and compliance with regulatory requirements. Web-based services are delivered as Software as a Service (SaaS) to customers interfacing seamlessly with billing, information and records management systems. Reverse Merger On January 27, 2016, AEON merged into a newly formed acquisition subsidiary of AHC pursuant to a definitive Amended and Restated Agreement and Plan of Merger dated January 26, 2016, as amended on May 31, 2016 and December 15, 2016 (collectively the “Merger Agreement”) (the “AEON Acquisition”). The merger certificate was filed with the Secretary of State of Georgia on January 27, 2016. AEON survived the merger as a wholly-owned subsidiary of AHC (collectively the “Company”). AEON contracts with health care professionals to provide urine and oral fluid testing to patients. The four primary tests provided by AEON are Medical Toxicology, Pharmacogenomics, Cancer Genetic Testing and Molecular Biology. Following the completion of the reverse merger, the business conducted by AEON became primarily the business conducted by the Company. Under accounting principles generally accepted in the United States of America (“U.S. GAAP”), the merger is treated as a “reverse merger” under the purchase method of accounting. The condensed consolidated financial statements reflect the historical results of AEON prior to the completion of the reverse merger since it was determined to be the accounting acquirer, and do not include historical results of AHC prior to the completion of the merger. Going Concern The Company’s capital requirements have been and will continue to be significant and it is expending significant amounts of capital to develop, promote and market its services. The Company’s available cash and cash equivalents as of September 30, 2017 totaled approximately $ 734,000 6,791,000 278,000 1,300,000 As of the filing date of this Quarterly Report on Form 10-Q, there is outstanding an aggregate principal amount of $ 2,545,199 March 20, 2018 240,000 We are exploring potential transactions to improve our capital position to ensure we can meet our financing and working capital requirements. We would expect to raise additional funds through obtaining a credit facility from an institutional lender or undertaking private debt financings. Raising additional funds by issuing equity or convertible debt securities may cause our stockholders to experience substantial dilution in their ownership interests and new investors may have rights superior to the rights of our other stockholders. Raising additional funds through debt financing or preferred stock, if available, may involve covenants that restrict our business activities and options and such additional securities may have powers, designations, preferences or rights senior to our currently outstanding securities. We may also enter into financing transactions which involve the granting of liens on our assets or which grant preferences of payment from our revenue streams, all of which could adversely impact our ability to rely on our revenue from operations to support our ongoing operating costs. Alternatively, we may seek to obtain new financing from existing security holders, which may include reducing the exercise or conversion prices of outstanding securities, or the issuance of additional equity securities. Currently, the Company does not have any definitive agreements with any third parties for such transactions and there can be no assurance that we will be successful in raising additional capital or securing financing when needed or on terms satisfactory to the Company. If we are unable to raise additional capital when required, or on acceptable terms, we will need to reduce costs and operations substantially or potentially suspend operations, any of which would have a material adverse effect on our business, financial condition and results of operations. Our future capital requirements will depend on, and could increase substantially as a result of many factors including (i) our need to utilize cash to support research and development activities and to make incremental investments in our organization; (ii) our ability to achieve targeted revenue, gross profit margins and cost management objectives; (iii) the success of our sales and marketing efforts; (iv) our need to repay indebtedness; (v) the extent and terms of any development, marketing or other arrangements; and (vi) changes in economic, regulatory or reimbursement rates or claim adjudication processes. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 2. Summary of Significant Accounting Policies The Company’s condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and following the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. These interim financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the Company’s financial information. These interim results are not necessarily indicative of the results to be expected for the year ending June 30, 2018 or any other interim period or for any other future year. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended June 30, 2017, included in the Company’s 2017 Annual Report on Form 10-K filed with the SEC. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most sensitive accounting estimates affecting the financial statements are revenue recognition, the allowance for doubtful accounts, depreciation of long-lived assets, fair value of intangible assets and goodwill, amortization of intangible assets, income taxes and associated deferrals and valuation allowances, commitments and contingencies and measurement of derivative liabilities. Accounts receivable represent customer obligations due under normal trade terms, net of allowance for doubtful accounts. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on known troubled accounts, historical experience and other currently available evidence. The allowance for doubtful accounts was approximately $ 887,000 923,000 The Company follows ASC 820-10, “ Fair Value Measurements and Disclosures Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally unobservable input and not corroborated by market data. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lower priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The Company’s warrant liabilities and certain conversion features underlying the convertible debt are categorized as Level 3. The Company provides laboratory testing services, web-based hosted software services, telehealth products and post contract customer support services. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) ASC-605 “ Revenue Recognition Revenue from laboratory testing services are recognized at the time test results are delivered, net of estimated contractual allowances. Revenue for hosted software services, telehealth products, and customer support services are recognized when persuasive evidence of an arrangement exists, delivery has occurred, the selling price is fixed and collectability is reasonably assured. Multiple-element arrangements are assessed to determine whether they can be separated into more than one unit of accounting. A multiple-element arrangement is separated into more than one unit of accounting if all the following criteria are met: (i) the delivered item has value to the customer on a standalone basis; (ii) there is objective and reliable evidence of the fair value of the undelivered items in the arrangement; (iii) if the arrangement includes a general right of return relative to the delivered items; (iv) and delivery or performance of the undelivered item is considered probable and substantially in the Company’s control. If these criteria are not met, then revenue is deferred until such criteria are met or until the period over which the last undelivered element is delivered, which is typically the life of the contract agreement. If these criteria are met, we allocate total revenue among the elements based on the sales price of each element when sold separately which is referred to as vendor specific objective evidence or VSOE. The Company maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. Accounts are guaranteed by the Federal Deposit Insurance Corporation (FDIC) up to certain limits. At September 30, 2017 and June 30, 2017, the Company had approximately $ 484,000 871,000 The Company accounts for income taxes under an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. In estimating future tax consequences, the Company generally considers all expected future events other than enactments of changes in tax laws or rates. The effect on deferred tax assets and liabilities of a change in tax rates will be recognized as income or expense in the period that includes the enactment date. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized. Management considers the likelihood of changes by taxing authorities in its filed income tax returns and recognizes a liability for or discloses potential changes that management believes are more likely than not to occur upon examination by tax authorities. Management has not identified any uncertain tax positions that require recognition or disclosure in the accompanying consolidated financial statements. Certain prior year amounts have been reclassified to conform to the current year presentation. In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers” (Topic 606) (“ASU 2014-09”), which affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards. Under ASU 2014-09, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU must be applied for annual periods beginning after December 15, 2017, with early application permitted for annual reporting periods beginning after December 15, 2016. While the Company does not believe that this ASU will have a material impact on the consolidated financial results of the Company, we understand it will require increased qualitative and quantitative disclosure about the nature, amount, timing and uncertainty arising from contracts with customers. The Company is still evaluating the impact of this ASU and expects to adopt this ASU effective July 1, 2018. In August 2014, the FASB issued ASU No. 2014-15, “ Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. In July 2015, the FASB issued ASU 2015-11, “ Inventory Topic 330 Simplifying the Measurement of Inventory In January 2016, the FASB issued ASU 2016-01, “Financial Instruments (Subtopic 825-10): Recognition and Measurements of Financial Assets and Financial Liabilities.” In February 2016, the FASB issued ASU No. 2016-02, “ Leases In March 2016, the FASB issued ASU No. 2016-09, “CompensationStock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” In August 2016, the FASB issued ASU No. 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” In November 2016, the FASB issued an ASU 2016-18, “Restricted Cash” |
Restatement and Correction of E
Restatement and Correction of Error | 3 Months Ended |
Sep. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Changes and Error Corrections [Text Block] | 3. Restatement and Correction of Error In the fourth quarter of the year ended June 30, 2017, the Company concluded that its results for the quarter ending September 30, 2016 included errors resulting in the understatement of inventory and the understatement of certain accruals. The financial statements for the quarter has been restated. Management considered the impact to current and past financial statements under the SEC’s authoritative guidance on materiality and determined that the error was material, and a restatement of the prior quarter financial statements was the most appropriate recognition of the adjustment so as not to mislead readers of the financial statements. The following sections detail the impact of the error on the previously issued unaudited consolidated financial statements for the prior quarter. AUTHENTIDATE HOLDING CORP. CONSOLIDATED STATEMENT OF INCOME As Originally Reported As Restated Three Months Three Months Ended Ended Sept 30, Sept 30, 2016 Adj 2016 Net revenues Fees for services $ 5,691,296 $ - $ 5,691,296 Hosted software services 346,934 - 346,934 Telehealth services 11,845 - 11,845 Total net revenues 6,050,075 - 6,050,075 Operating expenses Cost of revenues 1,166,996 (160,500) 1,006,496 Write-down of inventory 237,674 - 237,674 Selling, general and administrative 3,582,001 3,582,001 Depreciation and amortization 408,663 - 408,663 Total operating expenses 5,395,334 (160,500) 5,234,834 Operating income 654,741 160,500 815,241 Other expense, net 764,812 - 764,812 Income before provision for income taxes (110,071) 160,500 50,429 Income tax benefit 45,404 - 45,404 Net income $ (64,667) $ 160,500 $ 95,833 Earnings per share Basic earnings per common share $ (0.03) $ 0.03 $ 0.00 Diluted earnings per common share $ (0.03) $ 0.03 $ 0.00 The following adjustments were made to the September 30, 2016 Restated Statement of Cash Flows (Unaudited): AUTHENTIDATE HOLDING CORP. CONSOLIDATED STATEMENT OF CASH FLOWS As Originally Reported As Restated Three Months Three Months Ended Ended Sept 30, Sept 30, 2016 Adj 2016 Cash Flows from Operating Activities Net Income $ (64,667) $ 160,500 $ 95,833 Adjustments to reconcile net income to cash provided by operating activities Write off of inventory 237,674 - 237,674 Loss on debt extinguishment - - - Change in fair value of derivative liabilities 486,219 - 486,219 Deferred taxes (45,404) - (45,404) Depreciation and amortization 402,574 - 402,574 Share based compensation 89,526 - 89,526 Deferred rent (19,682) - (19,682) Changes in assets and liabilities Accounts receivable (424,904) - (424,904) Inventory 15,832 (160,500) (144,668) Prepaid expenses and other current assets (34,380) - (34,380) Accounts payable (190,810) - (190,810) Accrued expenses (541,908) - (541,908) Accrued commissions (183,659) - (183,659) Deferred rent - - - Net cash provided by (used by) operating activities (273,589) - (273,589) Cash flows from investing activities Purchases of property and equipment (15,449) - (15,449) Net cash used in investing activities (15,449) - (15,449) Cash flows from financing activities Proceeds from note payable - related party - - - Repayment of notes payable (525,000) - (525,000) Net cash used in financing activities (525,000) - (525,000) Net decrease in cash and cash equivalents (814,038) - (814,038) Cash and cash equivalents beginning of year 1,414,706 - 1,414,706 Cash and cash equivalents end of year $ 600,668 $ - $ 600,668 |
Inventory
Inventory | 3 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory [Text Block] | 4. Inventory September 30, June 30, 2017 2017 Laboratory testing supplies $ 377,610 $ 347,750 Total inventory $ 377,610 $ 347,750 Purchased components of approximately $ 31,000 207,000 |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes [Text Block] | 5. Income Taxes The Company’s effective tax rate for the quarter ended September 30, 2017 and 2016 was 0.0 40.2 35 At September 30, 2017, the Company had a net deferred tax asset of approximately $ 11,848,000 26,800,000 |
Related Party Notes Payable
Related Party Notes Payable | 3 Months Ended |
Sep. 30, 2017 | |
Notes Payable [Member] | |
Notes Payable [Text Block] | Related Party Notes Payable September 30, 2017 June 30, 2017 Note Interest rate Note Interest rate Payable per annum Payable per annum Secured Secured $ 1,056,875 5% interest paid annually $ 1,056,875 5% interest paid annually 641,294 5% interest paid annually 641,294 5% interest paid annually 255,417 5% interest paid annually 255,417 5% interest paid annually 591,613 5% interest paid annually 591,613 5% interest paid annually Total $ 2,545,199 Total $ 2,545,199 Secured At June 30, 2016, the Company had outstanding a convertible note payable in the aggregate principal amount of $ 950,000 2.25 422,222 85 9 1,056,875 5 2.03 At June 30, 2016, the Company had outstanding a promissory note in the aggregate principal amount of $ 320,000 10 4.86 5 3.00 106,667 this note was combined with the $ 200,000 641,294 5 2.03 Unsecured At June 30, 2016, the Company had outstanding a promissory note in the aggregate principal amount of $ 200,000 20 December 1, 2016 3.00 173,333 320,000 641,294 5 2.03 At June 30, 2016, the Company had a promissory note in the aggregate principal amount of $ 450,000 20 591,613 2.03 Effective as of January 31, 2017, the Company accepted a short-term loan in the aggregate principal amount of $250,000 from Hanif A. Roshan, the Company’s Chief Executive Officer and Chairman of the Board. To evidence the loan, the Company issued Mr. Roshan a promissory note (the “Note”) in the aggregate principal amount of $ 250,000 12 Exchange Transaction On March 20, 2017, the Company entered into a note exchange agreement with the holders of an aggregate principal amount of $ 2,170,000 2,545,199 2.03 1,253,792 328,422 950,000 2.25 520,000 3.00 700,000 During the year ended June 30, 2017, in connection with the exchange of the Original Notes for the New Notes, the Company also agreed with the holder of all outstanding shares of Series B Convertible Preferred Stock (the “Series B Preferred Stock”) to exchange all of its outstanding shares of Series B Preferred Stock for shares of a new series of convertible preferred stock designated as Series E Convertible Preferred Stock (the “Series E Preferred Stock”). Accordingly, on March 20, 2017, the Company also entered into a separate exchange agreement with the holder of the shares of Series B Preferred Stock, to exchange such shares for a total of 25,000 30.00 187,500 4.00 4.99 9.99 The New Notes bear interest at the rate of 5 110 Loss on Extinguishment of Debt In accordance with ASC 470-50, “ Debt Modifications and Extinguishments 258,037 328,422 50,000 120,385 |
Equity
Equity | 3 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Equity Preferred Stock As of September 30, 2017, there were 25,000 187,500 4.00 30.00 5 20,000 As of September 30, 2017, there are 605,000 619,154 9.77139 10.00 5 711,000 The Company’s preferred stock takes precedence over Common Stock but ranks below debt in the event of liquidation. In addition, the Series D Convertible Preferred Stock ranks above the Series E Convertible Preferred Stock. Earnings per Share FASB ASC Topic 260, Earnings per Share Three Months Ended September 30, 2017 2016 Basic earnings (loss) per share Net income (loss) $ (1,126,523) $ 95,833 Preferred stock dividends (84,550) (100,624) Net income (loss) available to common shareholders after preferred stock dividends $ (1,211,073) $ (4,791) Weighted average shares used in the computation of basic earnings per share 7,249,370 5,772,258 Earnings (loss) per share - basic $ (0.17) $ (0.00) Dilutive earnings (loss) per share Income (loss) available to common shareholders $ (1,211,073) $ (4,791) Weighted average shares used in the computation of diluted earnings per share 7,249,370 5,772,258 Dilutive effect of options, warrants, convertible debt and convertible preferred stock - - Shares used in the computation of diluted earnings (loss) per share 7,249,370 5,772,258 Earnings (loss) per share - diluted $ (0.17) $ (0.00) Anti-Dilutive Options Excluded 1,253,793 5,354,203 Common Stock Warrants Warrant Activity Number of Shares Weighted Average Weighted Average Aggregate Intrinsic Outstanding June 30, 2017 4,150,535 $ 4.67 3.87 $ 42,582 Issued - Expired - $ - - Outstanding September 30, 2017 4,150,535 $ 4.67 3.13 $ - Exercisable, September 30, 2017 4,094,979 $ 4.56 3.16 $ - |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation [Text Block] | 8. Share-Based Compensation Employee Option Activity Number of Weighted Average Aggregate Outstanding June 30, 2017 226,902 9.04 6.34 $ - Granted 50,000 2.00 9.95 - Expired/Forfeited (5,556) 24.48 - Outstanding September 30, 2017 271,346 9.58 7.00 $ - Exercisable September 30, 2017 149,917 11.94 4.99 $ - Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Non-Executive Option Activity Options Price Life (Years) Value Outstanding June 30, 2017 602,311 3.57 6.11 $ - Granted 45,555 1.59 9.97 - Expired/forfeited (35,901) 4.01 - - Outstanding and exercisable September 30, 2017 611,965 3.40 7.58 $ - Employees Information Number of Weighted Outstanding June 30, 2017 411,429 $ 1.75 Granted 25,000 2.00 Expired/Forfeited - - Outstanding September 30, 2017 436,429 1.76 |
Fair Value Measurements and Oth
Fair Value Measurements and Other Financial Instruments | 3 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements [Text Block] | 9. Fair Value Measurements and Other Financial Instruments The carrying amounts of the Company’s financial assets and liabilities, such as cash, accounts receivable, inventory, prepaid expenses, and other current assets, accounts payable and accrued expenses approximate their fair values because of the short maturity of these instruments. In connection with the issuance of a convertible promissory note as discussed in Note 6, the Company evaluated the note agreement to determine if the agreement contained any embedded components that would qualify the agreement as a derivative. The Company identified certain put features embedded in the convertible note agreement that potentially could result in a settlement in the event of a fundamental transaction, requiring the Company to classify the conversion feature as a derivative liability. The Company’s Level 3 financial liabilities consist of the derivative conversion features of underlying convertible debt and warrants issued in 2011 to 2015. The Company valued the conversion features using the Black Scholes model prior to the three months ended September 30, 2016 and the Monte Carlo model for all periods thereafter. These models incorporate transaction details such as the Company’s stock price, contractual terms maturity, risk free rates and volatility as of the date of issuance and each balance sheet date. The decrease in the value of the conversion feature of the convertible debt and warrants issued was primarily due to the decrease in the stock price during 2017 compared with prior years. Exercise Price $2.07 Risk free interest rate 1.56%-2.00% Expected volatility 50% Remaining Term 2.69-5.82 years The fair value of AHC financial instruments, using the fair value hierarchy under U.S. GAAP detailed in “Fair Value Measurements” in Note 2, “Summary of Significant Accounting Policies and Recently Issued Accounting Standards,” of the Notes to the Condensed Consolidated Financial Statements are included in the table below. The Company uses Level 3 of the fair value hierarchy to measure the fair value of the derivative liabilities and revalues its derivative liabilities at every reporting period and recognizes gains and losses in the statement of operations that are attributable to the change in the fair value of the derivative liabilities. Convertible Warrants Notes Total Balance - June 30, 2017 $ 435,036 $ 116,004 $ 551,040 Change in fair value of derivative liabilities (29,718) (43,573) (73,291) Balance - September 30, 2017 $ 405,318 $ 72,431 $ 477,749 Fair Value Level 1 Level 2 Level 3 June 30, 2017 derivative liabilities $ 551,040 $ - $ - $ 551,040 September 30, 2017 derivative liabilities $ 477,749 $ - $ - $ 477,749 Derivative Instruments For the quarter ended September 30, 2017, the Company recorded non-cash income of approximately $ 73,000 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies [Text Block] | 10. Commitments and Contingencies A complaint was filed by a former independent contractor in the State of Louisiana who was involved in the sales and marketing of the Company’s products and services. The caption of the case is Medlogic, LLC and Malena F. Badon Vs. Peachstate Health Management, LLC., Pyarali Roy, and Universal. Plaintiff alleges certain commissions had not been paid in full. The Company believes the contractor was overpaid and has asserted a counter claim and has asserted and has asserted a counter claim for reimbursement of such overpayments. The Company intends to vigorously defend the claim and pursue the counter claim. The parties have completed initial discovery and the matter remains pending. The Company believes the resolution of this matter will not have a material effect on its financial statements. Regarding the termination of the Company’s employment relationship with certain executives, including the former Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”) of AHC, the Company has been reviewing its severance obligations to them and the vesting of other post-termination provisions. The Company believes that it has accrued all related severance costs as of September 30, 2017 related to the past terminations. The former CEO of AHC commenced arbitration proceedings against AHC before the American Arbitration Association (“AAA”). A demand for arbitration was filed with the AAA on or about June 22, 2016 by the former CEO, O’Connell Benjamin, requesting payment of severance compensation of $ 341,620 On August 24, 2017, the Company commenced suit against Mr. Richard G. Hersperger, a former company director and officer, to recover 38,321 Authentidate Holding Corp. and Peachstate Health Management, LLC d/b/a Aeon Clinical Laboratories v. Richard G. Hersperger, The Company is a defendant in an action captioned Cogmedix, Inc. v. Authentidate Holding Corp. 227,061 On May 3, 2017, the Company received notice from the Office for Civil Rights (“OCR”) of the U.S. Department of Health and Human Services (“HHS”) informing the Company that the OCR is conducting a review of the Company’s compliance with applicable Federal Standards for Privacy of Individually Identifiable Health Information and/or Security Standards for the Protection of Electronic Protected Health Information. The OCR is the division of HHS charged with enforcing the Health Insurance Portability and Accountability Act of 1996, as amended (“HIPAA”), and the privacy, security and data breach rules which implement HIPAA (“HIPAA Rules”). The OCR reviewed the Company’s premises and conducted interviews on May 23, 2017. The OCR may, among other things, require a corrective action, issue penalties, or reach a monetary settlement. The Company continues to work on a resolution with the OCR. The Company does not expect a material adverse determination on its consolidated financial position, results of operations and cash flows. The Company is the plaintiff in a case captioned Peachstate Health Management, LLC d/b/a Aeon Clinical Laboratories v. Radius Foundation, Inc. and William Bramlett, Ph.D., 116,650 The Company is the plaintiff in a case captioned Peachstate Health Management, LLC d/b/a Aeon Clinical Laboratories v. Trimana, LLC d/b/a Via Medical Center filed on April 29, 2016 in the State Court of Hall County, State of Georgia. Service of the Summons and Complaint was perfected upon the Defendant on October 11, 2017, and an Answer is due to be filed by the Defendant on or before November 10, 2017. The Company’s Complaint seeks $ 104,442 The Company is also subject to claims and litigation arising in the ordinary course of business. Management considers that any liability from any reasonably foreseeable disposition of such claims and litigation, individually or in the aggregate, would not have a material adverse effect on the consolidated financial position, results of operations or cash flows. The Company has entered into various agreements by which it may be obligated to indemnify the other party with respect to certain matters. Generally, these indemnification provisions are included in contracts arising in the normal course of business under which we customarily agree to hold the indemnified party harmless against losses arising from a breach of representations related to such matters as intellectual property rights. Payments by the Company under such indemnification clauses are generally conditioned on the other party making a claim. Such claims are generally subject to challenge by the Company and to dispute resolution procedures specified in the particular contract. Further, obligations under these arrangements may be limited in terms of time and/or amount and, the Company may have recourse against third parties for certain payments made by the Company. It is not possible to predict the maximum potential amount of future payments under these indemnification agreements due to their conditional nature and the unique facts of each particular agreement. Historically, the Company has not made any payments under these agreements that have been material individually or in the aggregate. As of September 30, 2017, the Company is not aware of any obligations under such indemnification agreements that would require material payments. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 11. Related Party Transactions Except as disclosed herein, the Company has not entered into any material transactions or series of similar transactions with any director, executive officer or any security holder owning 5 AEON leases its facilities from Centennial Properties of Georgia, LLC under a lease agreement commencing April 2014, as amended January 20, 2016. The lease provides for a term of 12 46,500 60,000 September 30, 2017 144,000 139,500 The Company holds certain related party notes payable with shareholders and affiliates of board members of the Company, as detailed in Note 6. Interest expense relating to these notes amounted to approximately $ 32,000 87,000 Effective as of January 31, 2017, the Company accepted a short-term loan in the aggregate principal amount of $ 250,000 12 AHC entered into a lease agreement with Hanif A. (“Sonny”) Roshan (the “landlord”) for a residential premises at 5455 Golf View Drive, Braselton, Georgia 30517 for a term of one year beginning on January 1, 2017 and ending on December 31, 2017 3 |
Segment Information
Segment Information | 3 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 12. Segment Information The Company is operated as two segments: laboratory testing services (AEON), and web-based software (AHC). Laboratory testing services includes the testing of an individual’s blood, urine or saliva for the presence of drugs or chemicals and the patient’s DNA profile. Web-based software provide secure web-based revenue cycle management applications and telehealth products and services that enable healthcare organizations to increase revenues, improve productivity, reduce costs, coordinate care for patients and enhance related administrative and clinical workflows and compliance with regulatory requirements. Management currently runs each segment separately and measures profitability and operational performance based on the financial records independently maintained by two separate systems. Authentidate AEON Total Three Months ended September 30, 2017 Net revenues 247,670 $ 3,110,383 $ 3,358,052 Cost of revenues 55,127 1,073,449.18 1,128,576 Operating expenses 873,385 3,618,988 4,492,373 Operating loss (625,715) (508,606) (1,134,321) Three Months ended September 30, 2016 Net revenues $ 358,779 $ 5,691,296 $ 6,050,075 Cost of revenues 63,784 942,712 1,006,496 Operating expenses 597,282 4,637,552 5,234,834 Operating income (loss) (302,286) 1,117,527 815,241 September 30, 2017 Total assets $ 12,156,978 $ 3,695,243 $ 15,852,221 June 30, 2017 Total assets $ 11,772,874 $ 4,958,804 $ 16,731,678 |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The Company’s condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and following the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. GAAP can be condensed or omitted. These interim financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for a fair statement of the Company’s financial information. These interim results are not necessarily indicative of the results to be expected for the year ending June 30, 2018 or any other interim period or for any other future year. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended June 30, 2017, included in the Company’s 2017 Annual Report on Form 10-K filed with the SEC. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most sensitive accounting estimates affecting the financial statements are revenue recognition, the allowance for doubtful accounts, depreciation of long-lived assets, fair value of intangible assets and goodwill, amortization of intangible assets, income taxes and associated deferrals and valuation allowances, commitments and contingencies and measurement of derivative liabilities. |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Accounts Receivable, Net Accounts receivable represent customer obligations due under normal trade terms, net of allowance for doubtful accounts. The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on known troubled accounts, historical experience and other currently available evidence. The allowance for doubtful accounts was approximately $ 887,000 923,000 |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value Measurements The Company follows ASC 820-10, “ Fair Value Measurements and Disclosures Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally unobservable input and not corroborated by market data. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lower priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The Company’s warrant liabilities and certain conversion features underlying the convertible debt are categorized as Level 3. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition The Company provides laboratory testing services, web-based hosted software services, telehealth products and post contract customer support services. In accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) ASC-605 “ Revenue Recognition Revenue from laboratory testing services are recognized at the time test results are delivered, net of estimated contractual allowances. Revenue for hosted software services, telehealth products, and customer support services are recognized when persuasive evidence of an arrangement exists, delivery has occurred, the selling price is fixed and collectability is reasonably assured. Multiple-element arrangements are assessed to determine whether they can be separated into more than one unit of accounting. A multiple-element arrangement is separated into more than one unit of accounting if all the following criteria are met: (i) the delivered item has value to the customer on a standalone basis; (ii) there is objective and reliable evidence of the fair value of the undelivered items in the arrangement; (iii) if the arrangement includes a general right of return relative to the delivered items; (iv) and delivery or performance of the undelivered item is considered probable and substantially in the Company’s control. If these criteria are not met, then revenue is deferred until such criteria are met or until the period over which the last undelivered element is delivered, which is typically the life of the contract agreement. If these criteria are met, we allocate total revenue among the elements based on the sales price of each element when sold separately which is referred to as vendor specific objective evidence or VSOE. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Credit Risk The Company maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. Accounts are guaranteed by the Federal Deposit Insurance Corporation (FDIC) up to certain limits. At September 30, 2017 and June 30, 2017, the Company had approximately $ 484,000 871,000 |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company accounts for income taxes under an asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. In estimating future tax consequences, the Company generally considers all expected future events other than enactments of changes in tax laws or rates. The effect on deferred tax assets and liabilities of a change in tax rates will be recognized as income or expense in the period that includes the enactment date. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized. Management considers the likelihood of changes by taxing authorities in its filed income tax returns and recognizes a liability for or discloses potential changes that management believes are more likely than not to occur upon examination by tax authorities. Management has not identified any uncertain tax positions that require recognition or disclosure in the accompanying consolidated financial statements. |
Reclassification, Policy [Policy Text Block] | Reclassification Certain prior year amounts have been reclassified to conform to the current year presentation. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers” (Topic 606) (“ASU 2014-09”), which affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards. Under ASU 2014-09, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The ASU must be applied for annual periods beginning after December 15, 2017, with early application permitted for annual reporting periods beginning after December 15, 2016. While the Company does not believe that this ASU will have a material impact on the consolidated financial results of the Company, we understand it will require increased qualitative and quantitative disclosure about the nature, amount, timing and uncertainty arising from contracts with customers. The Company is still evaluating the impact of this ASU and expects to adopt this ASU effective July 1, 2018. In August 2014, the FASB issued ASU No. 2014-15, “ Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. In July 2015, the FASB issued ASU 2015-11, “ Inventory Topic 330 Simplifying the Measurement of Inventory In January 2016, the FASB issued ASU 2016-01, “Financial Instruments (Subtopic 825-10): Recognition and Measurements of Financial Assets and Financial Liabilities.” In February 2016, the FASB issued ASU No. 2016-02, “ Leases In March 2016, the FASB issued ASU No. 2016-09, “CompensationStock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” In August 2016, the FASB issued ASU No. 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” In November 2016, the FASB issued an ASU 2016-18, “Restricted Cash” |
Restatement and Correction of19
Restatement and Correction of Error (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | The following adjustments were made to the September 30, 2016 Restated Statement of Income (Unaudited): AUTHENTIDATE HOLDING CORP. CONSOLIDATED STATEMENT OF INCOME As Originally Reported As Restated Three Months Three Months Ended Ended Sept 30, Sept 30, 2016 Adj 2016 Net revenues Fees for services $ 5,691,296 $ - $ 5,691,296 Hosted software services 346,934 - 346,934 Telehealth services 11,845 - 11,845 Total net revenues 6,050,075 - 6,050,075 Operating expenses Cost of revenues 1,166,996 (160,500) 1,006,496 Write-down of inventory 237,674 - 237,674 Selling, general and administrative 3,582,001 3,582,001 Depreciation and amortization 408,663 - 408,663 Total operating expenses 5,395,334 (160,500) 5,234,834 Operating income 654,741 160,500 815,241 Other expense, net 764,812 - 764,812 Income before provision for income taxes (110,071) 160,500 50,429 Income tax benefit 45,404 - 45,404 Net income $ (64,667) $ 160,500 $ 95,833 Earnings per share Basic earnings per common share $ (0.03) $ 0.03 $ 0.00 Diluted earnings per common share $ (0.03) $ 0.03 $ 0.00 The following adjustments were made to the September 30, 2016 Restated Statement of Cash Flows (Unaudited): AUTHENTIDATE HOLDING CORP. CONSOLIDATED STATEMENT OF CASH FLOWS As Originally Reported As Restated Three Months Three Months Ended Ended Sept 30, Sept 30, 2016 Adj 2016 Cash Flows from Operating Activities Net Income $ (64,667) $ 160,500 $ 95,833 Adjustments to reconcile net income to cash provided by operating activities Write off of inventory 237,674 - 237,674 Loss on debt extinguishment - - - Change in fair value of derivative liabilities 486,219 - 486,219 Deferred taxes (45,404) - (45,404) Depreciation and amortization 402,574 - 402,574 Share based compensation 89,526 - 89,526 Deferred rent (19,682) - (19,682) Changes in assets and liabilities Accounts receivable (424,904) - (424,904) Inventory 15,832 (160,500) (144,668) Prepaid expenses and other current assets (34,380) - (34,380) Accounts payable (190,810) - (190,810) Accrued expenses (541,908) - (541,908) Accrued commissions (183,659) - (183,659) Deferred rent - - - Net cash provided by (used by) operating activities (273,589) - (273,589) Cash flows from investing activities Purchases of property and equipment (15,449) - (15,449) Net cash used in investing activities (15,449) - (15,449) Cash flows from financing activities Proceeds from note payable - related party - - - Repayment of notes payable (525,000) - (525,000) Net cash used in financing activities (525,000) - (525,000) Net decrease in cash and cash equivalents (814,038) - (814,038) Cash and cash equivalents beginning of year 1,414,706 - 1,414,706 Cash and cash equivalents end of year $ 600,668 $ - $ 600,668 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventory consists of the following: September 30, June 30, 2017 2017 Laboratory testing supplies $ 377,610 $ 347,750 Total inventory $ 377,610 $ 347,750 |
Related Party Notes Payable (Ta
Related Party Notes Payable (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | September 30, 2017 June 30, 2017 Note Interest rate Note Interest rate Payable per annum Payable per annum Secured Secured $ 1,056,875 5% interest paid annually $ 1,056,875 5% interest paid annually 641,294 5% interest paid annually 641,294 5% interest paid annually 255,417 5% interest paid annually 255,417 5% interest paid annually 591,613 5% interest paid annually 591,613 5% interest paid annually Total $ 2,545,199 Total $ 2,545,199 |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended September 30, 2017 2016 Basic earnings (loss) per share Net income (loss) $ (1,126,523) $ 95,833 Preferred stock dividends (84,550) (100,624) Net income (loss) available to common shareholders after preferred stock dividends $ (1,211,073) $ (4,791) Weighted average shares used in the computation of basic earnings per share 7,249,370 5,772,258 Earnings (loss) per share - basic $ (0.17) $ (0.00) Dilutive earnings (loss) per share Income (loss) available to common shareholders $ (1,211,073) $ (4,791) Weighted average shares used in the computation of diluted earnings per share 7,249,370 5,772,258 Dilutive effect of options, warrants, convertible debt and convertible preferred stock - - Shares used in the computation of diluted earnings (loss) per share 7,249,370 5,772,258 Earnings (loss) per share - diluted $ (0.17) $ (0.00) Anti-Dilutive Options Excluded 1,253,793 5,354,203 |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | A schedule of common stock warrant activity for the three months ended September 30, 2017 is as follows: Warrant Activity Number of Shares Weighted Average Weighted Average Aggregate Intrinsic Outstanding June 30, 2017 4,150,535 $ 4.67 3.87 $ 42,582 Issued - Expired - $ - - Outstanding September 30, 2017 4,150,535 $ 4.67 3.13 $ - Exercisable, September 30, 2017 4,094,979 $ 4.56 3.16 $ - |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Stock option activity under the Company’s stock option plans for employees and non-executive directors for the three months ended September 30, 2017 is as follows: Employee Option Activity Number of Weighted Average Aggregate Outstanding June 30, 2017 226,902 9.04 6.34 $ - Granted 50,000 2.00 9.95 - Expired/Forfeited (5,556) 24.48 - Outstanding September 30, 2017 271,346 9.58 7.00 $ - Exercisable September 30, 2017 149,917 11.94 4.99 $ - Weighted Average Average Remaining Aggregate Number of Exercise Contractual Intrinsic Non-Executive Option Activity Options Price Life (Years) Value Outstanding June 30, 2017 602,311 3.57 6.11 $ - Granted 45,555 1.59 9.97 - Expired/forfeited (35,901) 4.01 - - Outstanding and exercisable September 30, 2017 611,965 3.40 7.58 $ - |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Restricted stock unit activity under the Company’s restricted stock unit plans for employees and non-executive directors for the three months ended September 30, 2017 is as follows: Employees Information Number of Weighted Outstanding June 30, 2017 411,429 $ 1.75 Granted 25,000 2.00 Expired/Forfeited - - Outstanding September 30, 2017 436,429 1.76 |
Fair Value Measurements and O24
Fair Value Measurements and Other Financial Instruments (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block] | The Company utilized the following assumptions in valuing the derivative conversion features: Exercise Price $2.07 Risk free interest rate 1.56%-2.00% Expected volatility 50% Remaining Term 2.69-5.82 years |
Schedule of Derivative Liabilities at Fair Value [Table Text Block] | The following tables provide a summary of the changes in fair value, including net transfers in and/or out, of all financial assets / (liabilities) measured at the fair value on a recurring basis using significant unobservable inputs during the quarter ended September 30, 2017. Convertible Warrants Notes Total Balance - June 30, 2017 $ 435,036 $ 116,004 $ 551,040 Change in fair value of derivative liabilities (29,718) (43,573) (73,291) Balance - September 30, 2017 $ 405,318 $ 72,431 $ 477,749 |
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis [Table Text Block] | Fair Value Level 1 Level 2 Level 3 June 30, 2017 derivative liabilities $ 551,040 $ - $ - $ 551,040 September 30, 2017 derivative liabilities $ 477,749 $ - $ - $ 477,749 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Selected financial information related to the Company’s segments is presented below: Authentidate AEON Total Three Months ended September 30, 2017 Net revenues 247,670 $ 3,110,383 $ 3,358,052 Cost of revenues 55,127 1,073,449.18 1,128,576 Operating expenses 873,385 3,618,988 4,492,373 Operating loss (625,715) (508,606) (1,134,321) Three Months ended September 30, 2016 Net revenues $ 358,779 $ 5,691,296 $ 6,050,075 Cost of revenues 63,784 942,712 1,006,496 Operating expenses 597,282 4,637,552 5,234,834 Operating income (loss) (302,286) 1,117,527 815,241 September 30, 2017 Total assets $ 12,156,978 $ 3,695,243 $ 15,852,221 June 30, 2017 Total assets $ 11,772,874 $ 4,958,804 $ 16,731,678 |
Description of Business, Reve26
Description of Business, Reverse Merger and Liquidity (Details Textual) - USD ($) | 3 Months Ended | ||||
Sep. 30, 2017 | Mar. 20, 2018 | Jun. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | |
Working Capital Deficit | $ 6,791,000 | ||||
Cash and Cash Equivalents, at Carrying Value | 733,816 | $ 1,121,763 | $ 600,668 | $ 1,414,706 | |
Long-term Debt | 2,545,199 | $ 2,545,199 | |||
Monthly Operational Requirement | 1,300,000 | ||||
Senior Subordinated Notes [Member] | |||||
Long-term Debt | 240,000 | $ 2,545,199 | |||
Senior Secured Convertible Notes [Member] | |||||
Cash and Cash Equivalents, at Carrying Value | $ 734,000 | ||||
Debt Instrument, Maturity Date | Mar. 20, 2018 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Details Textual) - USD ($) | Sep. 30, 2017 | Jun. 30, 2017 |
Accounting Policies [Line Items] | ||
Allowance for Doubtful Accounts Receivable, Current | $ 887,000 | $ 923,000 |
Cash, Uninsured Amount | $ 484,000 | $ 871,000 |
Restatement and Correction of28
Restatement and Correction of Error (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Net revenues | ||
Fees for services | $ 3,110,382 | $ 5,691,296 |
Hosted software services | 243,020 | 346,934 |
Telehealth services | 4,650 | 11,845 |
Total net revenues | 3,358,052 | 6,050,075 |
Operating expenses | ||
Cost of revenues | 1,128,576 | 1,006,496 |
Write down of inventory | 0 | 237,674 |
Selling, general and administrative | 3,072,428 | 3,492,475 |
Depreciation and amortization | 222,584 | 408,663 |
Total operating expenses | 4,492,373 | 5,234,834 |
Operating income | (1,134,321) | 815,241 |
Other expense, net | 764,812 | |
Income before provision for income taxes | (1,126,523) | 50,429 |
Income tax benefit | 0 | (45,404) |
Net income | $ (1,126,523) | $ 95,833 |
Earnings per share | ||
Basic earnings per common share | $ (0.17) | $ 0 |
Diluted earnings per common share | $ (0.17) | $ 0 |
Scenario, Previously Reported [Member] | ||
Net revenues | ||
Fees for services | $ 5,691,296 | |
Hosted software services | 346,934 | |
Telehealth services | 11,845 | |
Total net revenues | 6,050,075 | |
Operating expenses | ||
Cost of revenues | 1,166,996 | |
Write down of inventory | 237,674 | |
Selling, general and administrative | 3,582,001 | |
Depreciation and amortization | 408,663 | |
Total operating expenses | 5,395,334 | |
Operating income | 654,741 | |
Other expense, net | 764,812 | |
Income before provision for income taxes | (110,071) | |
Income tax benefit | 45,404 | |
Net income | $ (64,667) | |
Earnings per share | ||
Basic earnings per common share | $ (0.03) | |
Diluted earnings per common share | $ (0.03) | |
Restatement Adjustment [Member] | ||
Net revenues | ||
Fees for services | $ 0 | |
Hosted software services | 0 | |
Telehealth services | 0 | |
Total net revenues | 0 | |
Operating expenses | ||
Cost of revenues | (160,500) | |
Write down of inventory | 0 | |
Depreciation and amortization | 0 | |
Total operating expenses | (160,500) | |
Operating income | 160,500 | |
Other expense, net | 0 | |
Income before provision for income taxes | 160,500 | |
Income tax benefit | 0 | |
Net income | $ 160,500 | |
Earnings per share | ||
Basic earnings per common share | $ 0.03 | |
Diluted earnings per common share | $ 0.03 |
Restatement and Correction of29
Restatement and Correction of Error (Details 1) - USD ($) | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash Flows from Operating Activities | ||
Net Income | $ (1,126,523) | $ 95,833 |
Adjustments to reconcile net income to cash provided by operating activities | ||
Write off of inventory | 0 | 237,674 |
Loss on debt extinguishment | 258,037 | 0 |
Change in fair value of derivative liabilities | (73,291) | 486,219 |
Deferred taxes | 0 | (45,404) |
Depreciation and amortization | 222,584 | 408,663 |
Share based compensation | 68,785 | 89,526 |
Deferred rent | (19,682) | |
Changes in assets and liabilities | ||
Accounts receivable | 205,469 | (424,904) |
Inventory | (29,863) | (144,668) |
Prepaid expenses and other current assets | 27,378 | 34,380 |
Accounts payable | (190,810) | |
Accrued expenses | 615,322 | (541,908) |
Accrued commissions | 108,515 | (183,659) |
Deferred rent | 0 | 19,682 |
Net cash provided by (used by) operating activities | (387,980) | (273,589) |
Cash flows from investing activities | ||
Purchases of property and equipment | 0 | (15,449) |
Net cash used in investing activities | 33 | (15,449) |
Cash flows from financing activities | ||
Proceeds from note payable - related party | 0 | |
Repayment of notes payable | 0 | (525,000) |
Net cash used in financing activities | 0 | (525,000) |
Net decrease in cash and cash equivalents | (387,947) | (814,038) |
Cash beginning of period | 1,121,763 | 1,414,706 |
Cash end of period | $ 733,816 | 600,668 |
Scenario, Previously Reported [Member] | ||
Cash Flows from Operating Activities | ||
Net Income | (64,667) | |
Adjustments to reconcile net income to cash provided by operating activities | ||
Write off of inventory | 237,674 | |
Loss on debt extinguishment | 0 | |
Change in fair value of derivative liabilities | 486,219 | |
Deferred taxes | (45,404) | |
Depreciation and amortization | 408,663 | |
Share based compensation | 89,526 | |
Deferred rent | (19,682) | |
Changes in assets and liabilities | ||
Accounts receivable | (424,904) | |
Inventory | 15,832 | |
Prepaid expenses and other current assets | (34,380) | |
Accounts payable | (190,810) | |
Accrued expenses | (541,908) | |
Accrued commissions | (183,659) | |
Deferred rent | 0 | |
Net cash provided by (used by) operating activities | (273,589) | |
Cash flows from investing activities | ||
Purchases of property and equipment | (15,449) | |
Net cash used in investing activities | (15,449) | |
Cash flows from financing activities | ||
Proceeds from note payable - related party | 0 | |
Repayment of notes payable | (525,000) | |
Net cash used in financing activities | (525,000) | |
Net decrease in cash and cash equivalents | (814,038) | |
Cash beginning of period | 1,414,706 | |
Cash end of period | 600,668 | |
Restatement Adjustment [Member] | ||
Cash Flows from Operating Activities | ||
Net Income | 160,500 | |
Adjustments to reconcile net income to cash provided by operating activities | ||
Write off of inventory | 0 | |
Loss on debt extinguishment | 0 | |
Change in fair value of derivative liabilities | 0 | |
Deferred taxes | 0 | |
Depreciation and amortization | 0 | |
Share based compensation | 0 | |
Deferred rent | 0 | |
Changes in assets and liabilities | ||
Accounts receivable | 0 | |
Inventory | (160,500) | |
Prepaid expenses and other current assets | 0 | |
Accounts payable | 0 | |
Accrued expenses | 0 | |
Accrued commissions | 0 | |
Deferred rent | 0 | |
Net cash provided by (used by) operating activities | 0 | |
Cash flows from investing activities | ||
Purchases of property and equipment | 0 | |
Net cash used in investing activities | 0 | |
Cash flows from financing activities | ||
Proceeds from note payable - related party | 0 | |
Repayment of notes payable | 0 | |
Net cash used in financing activities | 0 | |
Net decrease in cash and cash equivalents | 0 | |
Cash beginning of period | 0 | |
Cash end of period | $ 0 |
Inventory (Details)
Inventory (Details) - USD ($) | Sep. 30, 2017 | Jun. 30, 2017 |
Inventory [Line Items] | ||
Laboratory testing supplies | $ 377,610 | $ 347,750 |
Total inventory | $ 377,610 | $ 347,750 |
Inventory (Details Textual)
Inventory (Details Textual) - USD ($) | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Inventory Write-down | $ 0 | $ 237,674 |
Purchased Components [Member] | ||
Inventory Write-down | 31,000 | |
Finished Goods [Member] | ||
Inventory Write-down | $ 207,000 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Income Taxes [Line Items] | ||
Effective Income Tax Rate Reconciliation, Percent | 0.00% | 40.20% |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 35.00% | |
Deferred Tax Assets, Net | $ 11,848,000 | |
Deferred Tax Assets, Valuation Allowance | $ 26,800,000 |
Related Party Notes Payable (De
Related Party Notes Payable (Details) - USD ($) | Sep. 30, 2017 | Jun. 30, 2017 |
Note payable | ||
Total | $ 2,545,199 | $ 2,545,199 |
Secured Note One [Member] | ||
Note payable | ||
Secured | $ 1,056,875 | $ 1,056,875 |
Interest Terms | 5.00% | 5.00% |
Secured Note Two [Member] | ||
Note payable | ||
Secured | $ 641,294 | $ 641,294 |
Interest Terms | 5.00% | 5.00% |
Secured Note Three [Member] | ||
Note payable | ||
Secured | $ 255,417 | $ 255,417 |
Interest Terms | 5.00% | 5.00% |
Secured Note Four [Member] | ||
Note payable | ||
Secured | $ 591,613 | $ 591,613 |
Interest Terms | 5.00% | 5.00% |
Related Party Notes Payable (34
Related Party Notes Payable (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Mar. 20, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2017 | Mar. 31, 2017 | Jan. 31, 2017 | |
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount of promissory notes | $ 320,000 | |||||||
Debt Instrument, Convertible, Conversion Price | $ 4.86 | |||||||
Liabilities and Equity | $ 15,852,221 | $ 16,731,678 | ||||||
Embedded Derivative, Loss on Embedded Derivative | $ 328,422 | |||||||
Convertible Preferred Stock, Beneficial Ownership Limitation, Percentage | 4.99% | |||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.10 | $ 0.10 | ||||||
Gain (Loss) on Extinguishment of Debt | $ 258,037 | $ 0 | ||||||
Stock Issued During Period, Value, Conversion of Convertible Securities | $ 50,000 | |||||||
Series E Preferred Stock [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Preferred Stock Exchanged From Series B To Series E Preferred Stock | 25,000 | |||||||
Preferred Stock Convertible Into Common Stock | 187,500 | 187,500 | ||||||
Preferred Stock Conversion Price Per Share | $ 4 | $ 4 | ||||||
Preferred Stock, Par or Stated Value Per Share | $ 30 | |||||||
Series B Preferred Stock [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Dividends, Preferred Stock | $ 120,385 | |||||||
Optimum Ventures, LLC [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maturity date, description | (i) August 26, 2016, or (ii) the closing of a sale of equity or debt securities of the Company, or series of closings, as part of the same transaction, of equity or debt securities within a period of 90 days, in the gross amount of at least $5,000,000 in cash proceeds. | |||||||
Senior Secured Convertible Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Net proceeds from issuance of short term promissory notes | $ 106,667 | |||||||
Original Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Gross | $ 2,170,000 | |||||||
Original Notes One [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Convertible, Conversion Price | $ 2.25 | |||||||
Long-term Debt, Gross | $ 950,000 | |||||||
Original Notes Two [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Convertible, Conversion Price | $ 3 | |||||||
Long-term Debt, Gross | $ 520,000 | |||||||
Original Notes Three [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Gross | $ 700,000 | |||||||
J.DavidLuce [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maturity date, description | (i) August 26, 2016, or (ii) the closing of a sale of equity or debt securities of the Company, or series of closings, as part of the same transaction, of equity or debt securities within a period of 90 days, in the gross amount of at least $5,000,000 in cash proceeds. | |||||||
Senior Secured Promissory Note 10.0% Interest Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Convertible, Conversion Price | $ 3 | $ 3 | ||||||
Promissory Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |||||||
Debt Instrument, Convertible, Conversion Price | $ 3 | $ 3 | $ 2.03 | |||||
Long-term Debt, Gross | $ 641,294 | |||||||
Unsecured Debt, Current | $ 320,000 | |||||||
Promissory Notes [Member] | Optimum Ventures, LLC [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount of promissory notes | $ 450,000 | |||||||
Debt Instrument, Convertible, Conversion Price | $ 2.03 | |||||||
Effective interest rate of notes | 20.00% | |||||||
Long-term Debt, Gross | $ 591,613 | |||||||
Promissory Notes [Member] | J.DavidLuce [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument maturity date | Dec. 1, 2016 | |||||||
Debt Conversion, Converted Instrument, Shares Issued | 173,333 | |||||||
Exchange Agreement [Member] | J.DavidLuce [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 20.00% | |||||||
Aggregate principal amount of promissory notes | $ 200,000 | |||||||
New Promissory Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |||||||
Debt Instrument, Convertible, Conversion Price | $ 2.03 | |||||||
Debt Conversion, Converted Instrument, Shares Issued | 1,253,792 | |||||||
Long-term Debt, Gross | $ 2,545,199 | |||||||
Percentage of Accrued But Unpaid Interest Amount | 110.00% | |||||||
Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Convertible Preferred Stock, Beneficial Ownership Limitation, Percentage | 9.99% | |||||||
Secured Promissory Note [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | |||||||
Convertible Notes Payable [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 9.00% | ||||||
Aggregate principal amount of promissory notes | $ 950,000 | |||||||
Issuance of warrants | 422,222 | |||||||
Debt Instrument, Convertible, Conversion Price | $ 2.03 | $ 2.25 | ||||||
Debt instrument conversion price percentage decreased | 85.00% | |||||||
Long-term Debt, Gross | $ 1,056,875 | |||||||
Embedded Derivative, Loss on Embedded Derivative | $ 328,422 | |||||||
Notes Payable, Other Payables [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | 5.00% | |||||
Debt Instrument, Convertible, Conversion Price | $ 2.03 | |||||||
Long-term Debt, Gross | $ 641,294 | |||||||
Liabilities and Equity | $ 200,000 | |||||||
Notes Payable, Other Payables [Member] | Chief Executive Officer and Chairman of the Board [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | |||||||
Long-term Debt, Gross | $ 250,000 |
Equity (Details)
Equity (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Basic earnings (loss) per share | ||
Net income (loss) | $ (1,126,523) | $ 95,833 |
Preferred stock dividends | (84,550) | (100,624) |
Net income (loss) available\to common shareholders after preferred stock dividends | $ (1,211,073) | $ (4,791) |
Weighted average shares used in the computation of basic earnings per share | 7,249,370 | 5,772,258 |
Earnings (loss) per share - basic | $ (0.17) | $ 0 |
Dilutive earnings (loss) per share | ||
Income (loss) available to common shareholders | $ (1,211,073) | $ (4,791) |
Weighted average shares used in the computation of diluted earnings per share | 7,249,370 | 5,772,258 |
Dilutive effect of options, warrants, convertible debt and convertible preferred stock | 0 | 0 |
Shares used in the computation of diluted earnings (loss) per share | 7,249,370 | 5,772,258 |
Earnings (loss) per share - diluted | $ (0.17) | $ 0 |
Employee Stock Option [Member] | ||
Dilutive earnings (loss) per share | ||
Anti-Dilutive Options Excluded | 1,253,793 | 5,354,203 |
Equity (Details 1)
Equity (Details 1) - Warrants [Member] - USD ($) | 3 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Jun. 30, 2017 | |
Number of Shares | ||
Outstanding, Beginning balance | 4,150,535 | |
Expired/forfeited | 0 | |
Warrants issued | 0 | |
Outstanding, Ending balance | 4,150,535 | 4,150,535 |
Exercisable, June 30, 2017 | 4,094,979 | |
Weighted Average Exercise Price Per Share | ||
Outstanding, Beginning balance | $ 4.67 | |
Expired/forfeited | 0 | |
Outstanding, Ending balance | 4.67 | $ 4.67 |
Exercisable, June 30, 2017 | $ 4.56 | |
Weighted Average Remaining Contractual Life (Years) | ||
Outstanding | 3 years 1 month 17 days | 3 years 10 months 13 days |
Exercisable, June 30, 2017 | 3 years 1 month 28 days | |
Aggregate Intrinsic Value | ||
Outstanding | $ 0 | $ 42,582 |
Exercisable, June 30, 2017 | $ 0 |
Equity (Details Textual)
Equity (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | |
Mar. 20, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | |
Preferred Stock, Par or Stated Value Per Share | $ 0.10 | $ 0.10 | |
Series D Convertible Preferred Stock [Member] | |||
Preferred Stock, Shares Outstanding | 605,000 | ||
Preferred Stock, Redemption Price Per Share | $ 10 | ||
Dividends Payable | $ 711,000 | ||
Convertible Preferred Stock, Shares Issued upon Conversion | 619,154 | ||
Convertible Preferred Stock Conversion Price Per Share | $ 9.77139 | ||
Preferred Stock, Dividend Rate, Percentage | 5.00% | ||
Series E Preferred Stock [Member] | |||
Preferred Stock, Shares Outstanding | 25,000 | 25,000 | |
Dividends Payable | $ 20,000 | ||
Preferred Stock, Dividend Rate, Percentage | 5.00% | ||
Preferred Stock Convertible Into Common Stock | 187,500 | 187,500 | |
Preferred Stock Conversion Price Per Share | $ 4 | $ 4 | |
Preferred Stock, Par or Stated Value Per Share | $ 30 | ||
Series E Preferred Stock [Member] | Restatement Adjustment [Member] | |||
Preferred Stock, Par or Stated Value Per Share | $ 30 | ||
Series E Convertible Preferred Stock [Member] | |||
Preferred Stock, Shares Outstanding | 25,000 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2017 | Jun. 30, 2017 | |
Employees [Member] | ||
Number of Shares | ||
Outstanding, Balance | 226,902 | |
Granted | 50,000 | |
Expired/forfeited | (5,556) | |
Outstanding, Balance | 271,346 | 226,902 |
Exercisable, Balance | 149,917 | |
Weighted Average Exercise Price Per Share | ||
Outstanding, Balance | $ 9.04 | |
Granted | 2 | |
Expired/forfeited | 24.48 | |
Outstanding, Balance | 9.58 | $ 9.04 |
Exercisable, Balance | $ 11.94 | |
Weighted Average Remaining Contractual Life (Years) | ||
Outstanding, Balance | 7 years | 6 years 4 months 2 days |
Granted, Balance | 9 years 11 months 12 days | |
Outstanding, Balance | 7 years | 6 years 4 months 2 days |
Exercisable, Balance | 4 years 11 months 26 days | |
Aggregate Intrinsic Value | ||
Outstanding Balance | $ 0 | |
Outstanding Balance | 0 | $ 0 |
Exercisable Balance | $ 0 | |
Non-Executive Option Activity [Member] | ||
Number of Shares | ||
Outstanding, Balance | 602,311 | |
Granted | 45,555 | |
Expired/forfeited | (35,901) | |
Outstanding, Balance | 611,965 | 602,311 |
Exercisable, Balance | 611,965 | |
Weighted Average Exercise Price Per Share | ||
Outstanding, Balance | $ 3.57 | |
Granted | 1.59 | |
Expired/forfeited | 4.01 | |
Outstanding, Balance | 3.40 | $ 3.57 |
Exercisable, Balance | $ 3.40 | |
Weighted Average Remaining Contractual Life (Years) | ||
Outstanding, Balance | 6 years 1 month 10 days | |
Granted, Balance | 9 years 11 months 19 days | |
Outstanding, Balance | 6 years 1 month 10 days | |
Exercisable, Balance | 7 years 6 months 29 days | |
Aggregate Intrinsic Value | ||
Outstanding Balance | $ 0 | |
Expired/Forfeited | 0 | |
Outstanding Balance | $ 0 | $ 0 |
Share-Based Compensation (Det39
Share-Based Compensation (Details 1) - Restricted Stock Units (RSUs) [Member] | 3 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Number of RSUs, Balance | shares | 411,429 |
Number of RSUs, Granted | shares | 25,000 |
Number of RSUs, Expired/Forfeited | shares | 0 |
Number of RSUs, Balance | shares | 436,429 |
Weighted Average Grant Date Fair Value, Balance | $ / shares | $ 1.75 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 2 |
Weighted Average Grant Date Fair Value, Expired/Forfeited | $ / shares | 0 |
Weighted Average Grant Date Fair Value, Balance | $ / shares | $ 1.76 |
Fair Value Measurements and O40
Fair Value Measurements and Other Financial Instruments (Details) | 3 Months Ended |
Sep. 30, 2017$ / shares | |
Exercise Price | $ 2.07 |
Expected volatility | 50.00% |
Maximum [Member] | |
Risk free interest rate | 2.00% |
Remaining term | 5 years 9 months 25 days |
Minimum [Member] | |
Risk free interest rate | 1.56% |
Remaining term | 2 years 8 months 8 days |
Fair Value Measurements and O41
Fair Value Measurements and Other Financial Instruments (Details 1) | 3 Months Ended |
Sep. 30, 2017USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Balance - June 30, 2017 | $ 551,040 |
Change in fair value of derivative liabilities | (73,291) |
Balance - September 30, 2017 | 477,749 |
Warrant [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Balance - June 30, 2017 | 435,036 |
Change in fair value of derivative liabilities | (29,718) |
Balance - September 30, 2017 | 405,318 |
Convertible Notes [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Balance - June 30, 2017 | 116,004 |
Change in fair value of derivative liabilities | (43,573) |
Balance - September 30, 2017 | $ 72,431 |
Fair Value Measurements and O42
Fair Value Measurements and Other Financial Instruments (Details2) | Sep. 30, 2017USD ($) |
June 30, 2017 derivative liabilities | $ 551,040 |
September 30, 2017 derivative liabilities | 477,749 |
Fair Value, Inputs, Level 1 [Member] | |
June 30, 2017 derivative liabilities | 0 |
September 30, 2017 derivative liabilities | 0 |
Fair Value, Inputs, Level 2 [Member] | |
June 30, 2017 derivative liabilities | 0 |
September 30, 2017 derivative liabilities | 0 |
Fair Value, Inputs, Level 3 [Member] | |
June 30, 2017 derivative liabilities | 551,040 |
September 30, 2017 derivative liabilities | $ 477,749 |
Fair Value Measurements and O43
Fair Value Measurements and Other Financial Instruments (Details Textual) - USD ($) | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain (Loss) on Derivative Instruments, Net, Pretax | $ 73,291 | $ (486,219) |
Commitments and Contingencies (
Commitments and Contingencies (Details Textual) - USD ($) | Oct. 11, 2017 | Aug. 25, 2017 | Sep. 30, 2017 | Oct. 10, 2017 | Sep. 06, 2016 |
Contingencies And Commitments [Line Items] | |||||
Loss Contingency Accrual | $ 227,061 | ||||
Severance Costs | $ 341,620 | ||||
Mr. Richard G. Hersperger [Member] | |||||
Contingencies And Commitments [Line Items] | |||||
Stock Issued During Period, Shares, New Issues | 38,321 | ||||
Subsequent Event [Member] | |||||
Contingencies And Commitments [Line Items] | |||||
Alleged amount due | $ 104,442 | ||||
Gain Contingency, Unrecorded Amount | $ 116,650 |
Related Party Transactions (Det
Related Party Transactions (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2017 | Mar. 20, 2017 | Jan. 31, 2017 | |
Percentage of Owned Common Stock By Security Holder | 5.00% | 5.00% | ||||
Lease Term | 12 years | |||||
Interest Expense, Related Party | $ 32,000 | $ 87,000 | ||||
Hanif A [Member] | ||||||
Operating Leases, Rent Expense | $ 22,500 | |||||
Lease Expiration Date | Dec. 31, 2017 | |||||
Operating Leases, Rent Expense, Minimum Rentals | $ 46,500 | |||||
Lease Renewable Percentage | 3.00% | |||||
Hanif A [Member] | Scenario, Forecast [Member] | ||||||
Operating Leases, Rent Expense, Minimum Rentals | $ 7,500 | |||||
Notes Payable, Other Payables [Member] | ||||||
Long-term Debt, Gross | $ 641,294 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | ||||
Chief Executive Officer and Chairman of the Board [Member] | Notes Payable, Other Payables [Member] | ||||||
Long-term Debt, Gross | $ 250,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | |||||
Minimum [Member] | ||||||
Operating Leases, Future Minimum Payments Due | 46,500 | $ 46,500 | ||||
Maximum [Member] | ||||||
Operating Leases, Future Minimum Payments Due | $ 60,000 | 60,000 | ||||
Related Party [Member] | ||||||
Operating Leases, Rent Expense | $ 144,000 | $ 139,500 |
Segment Information (Details)
Segment Information (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | |||
Net revenues | $ 3,358,052 | $ 6,050,075 | |
Cost of revenues | 1,128,576 | 1,006,496 | |
Operating expenses | 4,492,373 | 5,234,834 | |
Operating income (loss) | (1,134,321) | 815,241 | |
Total assets | 15,852,221 | $ 16,731,678 | |
Authentidate [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 247,670 | 358,779 | |
Cost of revenues | 55,127 | 63,784 | |
Operating expenses | 873,385 | 597,282 | |
Operating income (loss) | (625,715) | (302,286) | |
Total assets | 12,156,978 | 11,772,874 | |
AEON [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 3,110,383 | 5,691,296 | |
Cost of revenues | 1,073,449.18 | 942,712 | |
Operating expenses | 3,618,988 | 4,637,552 | |
Operating income (loss) | (508,606) | $ 1,117,527 | |
Total assets | $ 3,695,243 | $ 4,958,804 |