Cantaloupe (CTLP) 10-Q14 May 142014 Q3 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
Document and Entity Information	Mar. 31, 2014	5-May-14
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'USA TECHNOLOGIES INC	'
Entity Central Index Key	'0000896429	'
Trading Symbol	'usat	'
Current Fiscal Year End Date	'--06-30	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	35,553,270
Document Type	'10-Q	'
Document Period End Date	31-Mar-14	'
Amendment Flag	'false	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Mar. 31, 2014	Jun. 30, 2013
Current assets:	'	'
Cash and cash equivalents	$6,577,117	$5,981,000
Accounts receivable, less allowance for uncollectible accounts of $47,000 and $18,000, respectively	1,974,349	2,620,684
Finance receivables	106,837	116,444
Inventory	1,512,003	1,823,615
Prepaid expenses and other current assets	488,146	184,336
Deferred income taxes	581,982	'
Total current assets	11,240,434	10,726,079
Finance receivables, less current portion	325,812	408,674
Other assets	86,877	84,117
Property and equipment, net	20,755,507	17,240,065
Deferred income taxes	26,127,191	'
Intangibles, net	432,100	454,053
Goodwill	7,663,208	7,663,208
Total assets	66,631,129	36,576,196
Current liabilities:	'	'
Accounts payable	6,372,212	7,301,247
Accrued expenses	1,309,673	1,468,184
Line of credit	4,000,000	3,000,000
Current obligations under long-term debt	249,915	247,152
Income taxes payable	35,521	'
Total current liabilities	11,967,321	12,016,583
Long-term liabilities:	'	'
Long-term debt, less current portion	316,871	122,754
Accrued expenses, less current portion	224,312	366,785
Deferred tax liabilities	'	40,245
Warrant liabilities	638,334	650,638
Total long-term liabilities	1,179,517	1,180,422
Total liabilities	13,146,838	13,197,005
Commitments and contingencies	'	'
Shareholders' equity:	'	'
Preferred stock, no par value: Authorized shares- 1,800,000 Series A convertible preferred- Authorized shares- 900,000 Issued and outstanding shares- 442,968 (liquidation preference of $16,690,456 and $16,026,004, respectively)	3,138,056	3,138,056
Common stock, no par value: Authorized shares- 640,000,000 Issued and outstanding shares- 35,496,570 and 33,284,232, respectively	223,919,102	221,383,373
Accumulated deficit	-173,572,867	-201,142,238
Total shareholders' equity	53,484,291	23,379,191
Total liabilities and shareholders' equity	$66,631,129	$36,576,196

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parentheticals) (USD $)	Mar. 31, 2014	Jun. 30, 2013
Allowance for uncollectible accounts receivable (in dollars)	$47,000	$18,000
Preferred stock, no par value (in dollars per share)	'	'
Preferred stock, shares authorized	1,800,000	1,800,000
Common stock, no par value (in dollars per share)	'	'
Common stock, shares authorized	640,000,000	640,000,000
Common stock, shares issued	35,496,570	33,284,232
Common stock, shares outstanding	35,496,570	33,284,232
Series A Convertible Preferred Stock	'	'
Preferred stock, shares authorized	900,000	900,000
Preferred stock, shares issued	442,968	442,968
Preferred stock, shares outstanding	442,968	442,968
Preferred stock, liquidation preference value (in dollars)	$16,690,456	$16,026,004

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended		9 Months Ended
Consolidated Statements of Operations (Unaudited) (USD $)	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Revenues:	'	'	'	'
License and transaction fees	$8,999,689	$7,562,589	$26,177,818	$21,872,187
Equipment sales	1,444,243	1,418,215	4,959,686	4,383,216
Total revenues	10,443,932	8,980,804	31,137,504	26,255,403
Cost of services	5,785,721	4,525,244	16,690,569	13,080,816
Cost of equipment	660,423	774,221	3,036,243	2,748,785
Gross profit	3,997,788	3,681,339	11,410,692	10,425,802
Operating expenses:	'	'	'	'
Selling, general and administrative	3,479,300	3,003,231	9,968,212	8,918,030
Depreciation and amortization	152,953	327,889	438,337	1,004,134
Total operating expenses	3,632,253	3,331,120	10,406,549	9,922,164
Operating income	365,535	350,219	1,004,143	503,638
Other income (expense):	'	'	'	'
Interest income	3,102	11,082	21,342	52,910
Interest expense	-60,934	-61,379	-182,315	-109,402
Change in fair value of warrant liabilities	-168,897	-1,308,954	12,304	-1,249,456
Total other expense, net	-226,729	-1,359,251	-148,669	-1,305,948
Income (loss) before benefit (provision) for income taxes	138,806	-1,009,032	855,474	-802,310
Benefit (provision) for income taxes	26,727,720	-6,911	26,713,897	-20,734
Net Income (loss)	26,866,526	-1,015,943	27,569,371	-823,044
Cumulative preferred dividends	-332,226	-332,226	-664,452	-664,452
Net income (loss) applicable to common shares	$26,534,300	($1,348,169)	$26,904,919	($1,487,496)
Net earnings (loss) per common share (basic and diluted) (in dollars per share)	$0.75	($0.04)	$0.78	($0.05)
Weighted average number of common shares outstanding (basic and diluted) (in shares)	35,504,911	32,821,345	34,313,396	32,690,374

Consolidated_Statement_of_Shar

Consolidated Statement of Shareholders' Equity (Unaudited) (USD $)	Preferred Stock	Common Stock	Accumulated Deficit	Total
	Series A Convertible Preferred Stock	Common Stock	Accumulated Deficit	Total
Balance at Jun. 30, 2013	$3,138,056	$221,383,373	($201,142,238)	$23,379,191
Balance (in shares) at Jun. 30, 2013	442,968	33,284,232	'	'
Increase (Decrease) in Stockholders' Equity [Roll Forward]	'	'	'	'
Exercise of 2,090,226 warrants at $1.13 resulting in issuance of common stock	'	2,361,955	'	2,361,955
Exercise of 2,090,226 warrants at $1.13 resulting in issuance of common stock (in shares)	'	2,090,226	'	'
Issuance of fully-vested shares of common stock to employees and directors and vesting of shares under the 2010 Stock Incentive Plan	'	6,024	'	6,024
Issuance of fully-vested shares of common stock to employees and directors and vesting of shares under the 2011 Stock Incentive Plan	'	15,553	'	15,553
Issuance of fully-vested shares of common stock to employees and directors and vesting of shares under the 2011 Stock Incentive Plan (in shares)	'	51,667	'	'
Issuance of fully-vested shares of common stock to employees and directors and vesting of shares under the 2012 Stock Incentive Plan	'	227,303	'	227,303
Issuance of fully-vested shares of common stock to employees and directors and vesting of shares under the 2012 Stock Incentive Plan (In shares)	'	112,799	'	'
Retirement of common stock	'	-75,106	'	-75,106
Retirement of common stock (in shares)	'	-42,354	'	'
Net income	'	'	27,569,371	27,569,371
Balance at Mar. 31, 2014	$3,138,056	$223,919,102	($173,572,867)	$53,484,291
Balance (in shares) at Mar. 31, 2014	442,968	35,496,570	'	'

Consolidated_Statement_of_Shar1

Consolidated Statement of Shareholders' Equity (Unaudited) (Parentheticals) (USD $)	9 Months Ended
	Mar. 31, 2014
Statement Of Stockholders Equity [Abstract]	'
Exercise of warrants at $1.13 in the issuance of common stock	2,090,226
Exercise price of warrants (in dollars per share)	$1.13

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended		9 Months Ended
Consolidated Statements of Cash Flows (Unaudited) (USD $)	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
OPERATING ACTIVITIES:	'	'	'	'
Net income (loss)	$26,866,526	($1,015,943)	$27,569,371	($823,044)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:	'	'	'	'
Charges incurred in connection with the vesting and issuance of common stock for employee and director compensation	60,024	149,009	248,880	369,233
(Gain) loss on disposal of property and equipment	-2,431	-14,815	7,053	-18,415
Non-cash interest and amortization of debt discount	'	26,934	2,095	26,934
Bad debt expense (recoveries), net	-11,277	-1,599	66,773	7,459
Depreciation	1,413,521	1,003,610	3,910,110	2,742,196
Amortization	'	185,600	21,953	556,800
Change in fair value of warrant liabilities	168,897	1,308,954	-12,304	1,249,456
Deferred income taxes, net	-26,727,720	6,911	-26,713,897	20,734
Changes in operating assets and liabilities:	'	'	'	'
Accounts receivable	-470,164	-1,212,990	579,562	63,489
Finance receivables	27,064	22,714	92,469	47,416
Inventory	214,495	603,019	338,415	685,114
Prepaid expenses and other current assets	52,483	59,841	-62,503	51,730
Accounts payable	386,832	-1,115,013	-929,035	-803,875
Accrued expenses	184,532	-223,669	-300,984	-1,792,479
Net cash provided by (used in) operating activities	2,162,782	-217,437	4,817,958	2,382,748
INVESTING ACTIVITIES:	'	'	'	'
Purchase of property and equipment	-35,134	-31,413	-60,361	-81,691
Purchase of property for rental program	-2,643,439	-1,778,344	-7,211,661	-6,320,514
Proceeds from the sale of property and equipment	5,513	18,908	30,375	18,908
Net cash used in investing activities	-2,673,060	-1,790,849	-7,241,647	-6,383,297
FINANCING ACTIVITIES:	'	'	'	'
Net proceeds from the exercise of common stock warrants and the retirement of common stock	521,762	74,840	2,286,849	-12,475
Proceeds from line of credit	'	1,000,000	1,000,000	2,000,000
Repayment of long-term debt	-89,366	-164,363	-267,043	-465,084
Net cash provided by financing activities	432,396	910,477	3,019,806	1,522,441
Net increase (decrease) in cash and cash equivalents	-77,882	-1,097,809	596,117	-2,478,108
Cash and cash equivalents at beginning of period	6,654,999	5,046,346	5,981,000	6,426,645
Cash and cash equivalents at end of period	6,577,117	3,948,537	6,577,117	3,948,537
Supplemental disclosures of cash flow information:	'	'	'	'
Cash paid for interest	59,399	32,551	189,203	84,220
Depreciation expense allocated to cost of sales	1,260,568	861,321	3,493,726	2,294,862
Reclass of rental program property to inventory, net	13,686	2,296	26,803	11,923
Prepaid items financed with debt	144,312	2,340	246,162	130,402
Prepaid interest from issuance of warrants for debt costs	'	55,962	'	55,962
Equipment and software acquired under capital lease	195,725	80,883	217,761	80,883
Disposal of property and equipment	$15,141	$7,700	$233,857	$7,700

ACCOUNTING_POLICIES

ACCOUNTING POLICIES	9 Months Ended
ACCOUNTING POLICIES	Mar. 31, 2014
Business Description And Accounting Policies [Abstract]	'
ACCOUNTING POLICIES	'
	1. ACCOUNTING POLICIES

	Business

	USA Technologies, Inc. (the “Company”, “We” or “Our”), was incorporated in the Commonwealth of Pennsylvania in January 1992 and provides wireless networking, cashless transactions, asset monitoring and other value-added services principally to the small ticket unattended retail markets. Our ePort® technology can be installed and/or embedded into everyday devices such as vending machines, a variety of kiosks, and amusement and arcade machines and smartphones via our ePort Mobile™ solution. Our associated service, ePort Connect®, is a PCI-compliant, comprehensive service that includes simplified credit/debit card processing and support, consumer engagement services, as well as telemetry and machine-to-machine (“M2M”) services, including the ability to remotely monitor, control and report on the results of distributed assets containing our electronic payment solutions. In addition, the Company provides energy management products, such as its VendingMiser® and CoolerMiser™, which reduce energy consumption in vending machines and coolers.

	Interim Financial Information

	The accompanying unaudited consolidated financial statements of USA Technologies, Inc. have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements and therefore should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended June 30, 2013. In the opinion of management, all adjustments considered necessary for a fair presentation, consisting of normal recurring adjustments, have been included. Operating results for the three and nine-month periods ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending June 30, 2014. The balance sheet at June 30, 2013 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements.

	The Company had net income of $26,866,526 and $27,569,371 for the three and nine-month periods ended March 31, 2014, respectively. Included in net income is a benefit for income taxes of $26,727,720 and $26,713,897 for the three and nine-month periods ended March 31, 2014, respectively. The Company had net income of $854,123 for the year ended June 30, 2013. Net income includes adjustments for changes to the fair value of our warrant liabilities, which are subject to secondary market conditions, and are not reasonably predictable. The Company’s ability to meet its future obligations is dependent upon the success of its products and services in the marketplace and the available capital resources. Until the Company’s products and services can generate sufficient annual revenues, the Company will be required to use its cash and cash equivalents on hand, and its line of credit (see Note 4), and may raise capital to meet its cash flow requirements including the issuance of Common Stock or debt financing.

	Consolidation

	The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Stitch Networks Corporation (“Stitch”) and USAT Capital Corp LLC (“USAT Capital”). All significant intercompany accounts and transactions have been eliminated in consolidation.

	Use of Estimates

	The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

	Cash Equivalents

	Cash equivalents represent all highly liquid investments with original maturities of three months or less. Cash equivalents are comprised of money market funds. The Company maintains its cash in bank deposit accounts, which may exceed federally insured limits at times.

	At March 31, 2014 and June 30, 2013, none of the cash and cash equivalents of the Company was payable to our customers. Included in accounts receivable are amounts for transactions processed with our card processers for which cash has not been received by the Company and included in accounts payable are amounts for transactions processed with our card processers and due to our customers, which are recorded net of fees due to the Company. Generally, contractual terms require us to remit amounts owed to our customers on a weekly basis.


	Finance Receivables

	The Company offers extended payment terms to certain customers for equipment sales under its Quick Start Program. Notes receivable or Quick Start leases are generally for a 36 or 60 month term. Finance receivables are carried at their contractual amount and charged off against the allowance for credit losses when management determines that recovery is unlikely and the Company ceases collection efforts. The Company recognizes a portion of the note or lease payments as interest income in the accompanying consolidated financial statements based on the effective interest rate method.

	Inventory

	Inventory consists of finished goods and packaging materials. The Company’s inventory is stated at the lower of cost (average cost basis) or market.

	Fair Value of Financial Instruments

	The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2010-06, “Fair Value Measurements and Disclosures (“Topic 820”): Improving Disclosures about Fair Value Measurements.” ASU 2010-06 amends certain disclosure requirements of Subtopic 820-10. This ASU provides additional disclosures for transfers in and out of Levels 1 and 2 and for activity in Level 3. This ASU also clarifies certain other existing disclosure requirements including level of desegregation and disclosures around inputs and valuation techniques.

	The Company’s financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy. The three levels are as follows:

	Level 1- Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

	Level 2- Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).

	Level 3- Inputs are unobservable and reflect the Company’s assumptions that market participants would use in pricing the asset or liability. The Company develops these inputs based on the best information available.

	The Company’s financial instruments, principally cash equivalents, accounts receivable, finance receivables, prepaid expenses and other assets, accounts payable and accrued expenses, are carried at cost which approximates fair value due to the short-term maturity of these instruments. The fair value of the Company’s obligations under its long-term debt and credit agreements approximates their carrying value, as such instruments are at market rates currently available to the Company.

	Property and Equipment

	Property and equipment are recorded at cost. Property and equipment are depreciated on the straight-line basis over the estimated useful lives of the related assets. Leasehold improvements are amortized on the straight-line basis over the lesser of the estimated useful life of the asset or the respective lease term.

	Accounting for Equity Awards

	In accordance with ASC 718, the cost of employee services received in exchange for an award of equity instruments is based on the grant-date fair value of the award and allocated over the vesting period of the award.


	Income Taxes

	Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets, including tax loss and credit carryforwards, and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on their characteristics. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.

	Income (Loss) Per Common Share

Basic earnings (loss) per share are calculated by dividing income (loss) applicable to common shares by the weighted average common shares outstanding for the period. Diluted earnings per share is calculated by dividing income (loss) applicable to common shares by the weighted average common shares outstanding for the year plus the effect of potential common shares unless such effect is anti-dilutive.

FINANCE_RECEIVABLES

FINANCE RECEIVABLES	9 Months Ended
FINANCE RECEIVABLES	Mar. 31, 2014
Receivables [Abstract]	'
FINANCE RECEIVABLES	'
	2. FINANCE RECEIVABLES

	Finance Receivables consist of the following:

		March 31,		June 30,
		2014		2013
		(unaudited)
	Total finance receivables	$	432,649	$	525,118
	Less current portion		106,837		116,444
	Non-current portion of finance receivables	$	325,812	$	408,674

	As of March 31, 2014 and June 30, 2013, there was no allowance for credit losses of finance receivables. As the Company collects monthly payments of the receivables from the customers’ transaction funds, the risk of loss was determined to be remote.

	Credit Quality Indicators
	As of March 31, 2014
	(unaudited)

	Credit risk profile based on payment activity:
		Leases

	Performing	$	432,649
	Nonperforming		-
	Total	$	432,649


	Age Analysis of Past Due Finance Receivables
	As of March 31, 2014
	(unaudited)

		31 – 60		61 – 90		Greater than		Total Past		Current		Total
		Days Past		Days Past		90 Days		Due				Finance Receivables
		Due		Due		Past Due

	Leases	$	2,525	$	751	$	1,490	$	4,766	$	427,883	$	432,649
	Total	$	2,525	$	751	$	1,490	$	4,766	$	427,883	$	432,649

ACCRUED_EXPENSES

ACCRUED EXPENSES	9 Months Ended
ACCRUED EXPENSES	Mar. 31, 2014
Accrued Liabilities [Abstract]	'
ACCRUED EXPENSES	'
	3. ACCRUED EXPENSES

	Accrued expenses consist of the following:

		March 31,		June 30,
		2014		2013
		(unaudited)
	Accrued compensation and related sales commissions	$	395,018	$	583,710
	Accrued professional fees		185,760		165,444
	Accrued taxes and filing fees		172,578		253,527
	Advanced customer billings		412,843		346,868
	Accrued rent		174,232		226,582
	Accrued other		193,554		258,838
		$	1,533,985	$	1,834,969

LINE_OF_CREDIT

LINE OF CREDIT	9 Months Ended
LINE OF CREDIT	Mar. 31, 2014
Line Of Credit Facility [Abstract]	'
LINE OF CREDIT	'
	4. LINE OF CREDIT

	In September 2013, the Company and Avidbank Corporate Finance, a division of Avidbank (the “Bank”) entered into a Fifth Amendment (“Fifth Amendment”) to the Loan and Security Agreement (“Loan Documents”) to change the minimum Adjusted EBITDA for covenant calculations for the four fiscal quarters ending through June 30, 2014.

	The Loan Documents also contain customary events of default, including, among other things, payment defaults, breaches of covenants, and bankruptcy and insolvency events, subject to grace periods in certain instances. Upon an event of default, the Bank may declare all of the outstanding obligations of the Company under the Line of Credit and Loan Documents to be immediately due and payable, and exercise any other rights provided for under the Loan Documents.

	The balance due on the Line of Credit was $4,000,000 and $3,000,000 at March 31, 2014 and June 30, 2013, respectively. At March 31, 2014, $1,000,000 was available. In April 2014, the Company borrowed the remaining available credit of $1,000,000 under the existing agreement with the Bank (Note 10). During the March 31, 2014 quarter, the Company obtained a waiver from the Bank for failure to satisfy one Monthly Liquidity covenant and one Adjusted EBITDA covenant.

LONGTERM_DEBT

LONG-TERM DEBT	9 Months Ended
LONG-TERM DEBT	Mar. 31, 2014
Debt Disclosure [Abstract]	'
LONG-TERM DEBT	'
	5. LONG-TERM DEBT

	Long-term debt consists of the following:

		March 31,		June 30,
		2014		2013
		(unaudited)
	Capital lease obligations	$	531,525	$	345,925
	Loan agreement		35,261		23,981
			566,786		369,906
	Less current portion		249,915		247,152
		$	316,871	$	122,754

	During July 2013, the Company entered into a capital lease for office equipment totaling $22,036 due in 24 monthly installments of $1,033 through July 2015.

	During August 2013, the Company financed a portion of the premiums for various insurance policies totaling $101,850, due in nine monthly payments through April 2014 at an interest rate of 5.27%.

	In February 2014, the Company entered into a capital lease for network equipment totaling $195,725 due in 48 monthly installments of $4,972 through January 2018.

	In March 2014, the Company entered into a capital lease for leasehold improvements and office furniture totaling $144,312 due in sixty monthly installments of $2,998 through April 2019.

FAIR_VALUE_OF_FINANCIAL_INSTRU

FAIR VALUE OF FINANCIAL INSTRUMENTS	9 Months Ended
FAIR VALUE OF FINANCIAL INSTRUMENTS	Mar. 31, 2014
Fair Value Disclosures [Abstract]	'
FAIR VALUE OF FINANCIAL INSTRUMENTS	'
	6. FAIR VALUE OF FINANCIAL INSTRUMENTS

	In accordance with the fair value hierarchy described in Note 1, the following table shows the fair value of the Company’s financial instruments that are required to be measured at fair value as of March 31, 2014 and June 30, 2013:

	March 31, 2014 (unaudited)	Level 1			Level 2			Level 3		Total

	Cash equivalents	$	-		$	-		$	-	$	-
	Common stock warrant liability, warrants exercisable at $2.6058 from September 18, 2011 through September 18, 2016	$	-		$	-		$	638,334	$	638,334

	June 30, 2013	Level 1			Level 2			Level 3		Total

	Cash equivalents	$	192,620		$	-		$	-	$	192,620
	Common stock warrant liability, warrants exercisable at $2.6058 from September 18, 2011 through September 18, 2016	$	-		$	-		$	650,638	$	650,638

	As of March 31, 2014 and June 30, 2013, the fair values of the Company’s Level 1 financial instruments were $0 and $192,620, respectively. These financial instruments consist of cash equivalents, including money market accounts. As of March 31, 2014 and June 30, 2013, the Company held no Level 2 financial instruments.


	As of March 31, 2014 and June 30, 2013, the fair values of the Company’s Level 3 financial instruments totaled $638,334 and $650,638, respectively. The Level 3 financial instrument consists of common stock warrants issued by the Company in March 2011, which include features requiring liability treatment of the warrants. The fair value of warrants issued in March 2011 to purchase 3.9 million shares of the Company’s common stock is based on valuations performed by an independent third party valuation firm. The fair value was determined using proprietary valuation models using the quality of the underlying securities of the warrants, restrictions on the warrants and security underlying the warrants, time restrictions and precedent sale transactions completed in the secondary market or in other private transactions.

	The following table summarizes the changes in fair value of the Company’s Level 3 financial instruments for the nine-months ended March 31, 2014 and 2013:

		Nine months ended
		March 31,
		2014			2013
		(unaudited)			(unaudited)
	Beginning balance	$	(650,638	)	$	(918,566	)
	Gain (loss) due to change in fair value of warrant liabilities, net		12,304			(1,249,456	)
	Ending balance	$	(638,334	)	$	(2,168,022	)

INCOME_TAXES

INCOME TAXES	9 Months Ended
INCOME TAXES	Mar. 31, 2014
Income Tax Disclosure [Abstract]	'
INCOME TAXES	'
	7. INCOME TAXES

	The Company has significant deferred tax assets, a substantial amount of which result from operating loss carryforwards. The Company routinely evaluates its ability to realize the benefit of these assets to determine whether it is more likely than not that such benefit will be realized. In periods prior to March 31, 2014, the Company’s evaluation of its ability to realize the benefit from its deferred tax assets resulted in a full valuation allowance against such assets. Based upon earnings performance that the Company has achieved currently and in the recent past along with its belief that such performance will continue into future years, the Company, as of March 31, 2014, has determined that it is more likely than not that a substantial portion of its deferred tax assets will be realized and has reduced $26,713,897 of its valuation allowances recorded in prior periods.

	The reduction in the valuation allowance was primarily the result of the following facts at the point we reduced the allowance: (i) our net income of $854,123 for the 2013 fiscal year; (ii) our net income (excluding the benefit from income taxes related to the valuation allowance) of $873,170 during the first nine months of the 2014 fiscal year; (iii) our forecasts which show earnings sufficient to utilize these tax assets; and (iv) the nature of our recurring revenue service model which supports our forecasts of earnings.

	The evaluation of the amount of net deferred tax assets expected to be realized involves forecasting the amount of taxable income that will be generated in future years. We have forecasted future results using estimates management believes to be conservative in nature. As an example, in our forecast, the Company assumed that significantly fewer net connections would be added to its service per year than what it has historically achieved during each of the previous five fiscal years (fiscal year 2009 through fiscal year 2013). In connection with its recurring revenue service model, net connections are a key metric which drives our future growth, including earnings. In connection with our forecasts, we also took into account several industry analysts who have projected that demand for technology and services similar to ours will continue to grow in the markets in which we serve. Based upon our outlook for future periods, at March 31, 2014, we estimated that it was more likely than not that approximately $69 million of our net operating loss carryforwards would be utilized to offset corresponding future taxable income.

	If in future periods, the Company demonstrates its ability to grow future taxable earnings in excess of the forecast described above, we will re-evaluate the need to keep some, or all, of the remaining valuation allowance of $22,833,664 on its deferred tax assets.

	The reduction of the $26,713,897 in valuation allowances is reflected as an income tax benefit in the provision for income taxes for the three months and nine months ended March 31, 2014. The provision for income taxes for the three months ended March 31, 2014 also reflects a benefit of $13,823 which represents the provision for income taxes recorded through December 31, 2013 relating to amortization of indefinite life intangible assets and goodwill for income tax purposes and not subject to offset against finite life assets when full valuation allowances were reflected against deferred tax assets.

		Three months ended			Nine months
		Three months ended			ended
		31-Mar-14			31-Mar-14

	Income before benefit from income taxes	$	138,806		$	855,474
	Estimated annual effective tax rate		0	%		0	%
	Provision (benefit) for income taxes	$	-		$	-
	Reversal of provision for income taxes recorded for the six months ended December 31, 2013	$	(13,823	)	$	-
	Benefit from reduction of valuation allowances		(26,713,897	)		(26,713,897	)
	Benefit from income taxes	$	(26,727,720	)	$	(26,713,897	)

	A provision for income taxes of $6,911 and $20,734 (all deferred income taxes) was recorded for the three months and nine months ended March 31, 2013, respectively. The provision for income taxes related to amortization of indefinite life intangible assets and goodwill that are being amortized for income tax purposes but not for financial reporting purposes giving rise to basis differences in such assets between financial and income tax reporting. As of March 31, 2013 there was a full valuation allowance against the Company’s deferred tax assets.

COMMON_STOCK_AND_COMMON_STOCK_

COMMON STOCK AND COMMON STOCK WARRANTS	9 Months Ended
COMMON STOCK AND COMMON STOCK WARRANTS	Mar. 31, 2014
Common Stock And Common Stock Warrants Abstract	'
COMMON STOCK AND COMMON STOCK WARRANTS	'
	8. COMMON STOCK AND COMMON STOCK WARRANTS

	Under the 2010 Stock Incentive Plan, the Company recorded stock compensation expense of $4,520 and $6,024 during the three and nine-months ended March 31, 2014, respectively. Of these amounts, $6,902 was recorded for the three and nine-months ended March 31, 2014 relating to the vesting of shares for Directors in lieu of cash payment for services on the Board of Directors less a reduction of expense, of $2,382 and $878, respectively, related to the resignation of one of these Directors; no shares of Common stock were vested under this plan during the three and nine-months ended March 31, 2014.

	Under the 2011 Stock Incentive Plan, the Company recorded stock compensation expense of $1,813 and $15,553 and 0 and 51,667 shares of Common stock vested during the three and nine-months ended March 31, 2014, respectively, related to shares granted to employees and Directors of the Company in September 2011 and July 2012.

	Under the 2012 Stock Incentive Plan, the Company recorded stock compensation expense of $53,691 and $227,303 and 31,770 and 112,799 shares of Common stock vested during the three and nine-months ended March 31, 2014, respectively. Of these amounts $38,099 and $153,098 related to vesting of shares for Directors in lieu of cash payment for services on the Board of Directors and 31,770 and 67,483 shares of Common Stock vested during the three and nine-months ended March 31, 2014, respectively. For the three and nine-months ended March 31, 2014, the Company recorded stock compensation expense of $0 and an expense reduction of $5,527, respectively, related to non-executive employee incentives as certain performance targets were not achieved, and 13,300 shares of Common Stock vested in the three and nine-months ended March 31, 2014.

	On November 7, 2013, at the recommendation of the Compensation Committee, the Board of Directors approved a stock bonus to the Company’s Chief Financial Officer (“CFO”). The CFO was awarded 21,000 vested shares of common stock of the Company as a bonus in recognition of his performance during the 2013 fiscal year. For the three and nine-months ended March 31, 2014, $0 and $38,220, respectively, was recorded as expense on account of the stock bonus under the 2012 Stock Incentive Plan.

	On November 7, 2013, at the recommendation of the Compensation Committee, the Board of Directors approved the Fiscal Year 2014 Long-Term Stock Incentive Plan (the “2014 LTI Stock Plan”). The 2014 LTI Stock Plan provides that each executive officer would be awarded shares of common stock in the event that certain metrics relating to the Company’s 2014 fiscal year would result in specified ranges of year-over-year percentage growth. At the time of the establishment of the 2014 LTI Stock Plan, the Compensation Committee believed that the attainment of the target goals under the plan would represent a significant achievement for management, and were designed to stretch the Company’s and management’s performance during the fiscal year.

	If none of the minimum threshold year-over-year percentage target goals are achieved, the executive officers would not be awarded any shares. If all of the year-over-year percentage target goals are achieved, the executive officers would be awarded shares having the following value: Chief Executive Officer (“CEO”) – $341,277 (100% of base salary); and CFO – $175,698 (75% of base salary). If all of the maximum distinguished year-over-year percentage target goals are achieved, the executive officers would be awarded shares having the following value: CEO – $682,554 (200% of base salary); and CFO – $351,396 (150% of base salary). Assuming the minimum threshold year-over-year percentage target goal would be achieved for a particular metric, the number of shares to be awarded for that metric would be determined on a pro rata basis, provided that the award would not exceed the maximum distinguished award for that metric. The shares awarded under the 2014 LTI Stock Plan would vest over a three year period following issuance as follows: one-third on the first anniversary; one-third on the second anniversary; and one-third on the third anniversary. The Company recorded stock compensation expense of $15,592 and $41,512 for the three and nine-months ended March 31, 2014 on account of the 2014 LTI Stock Plan under the 2012 Stock Incentive Plan.

	During the three and nine-month periods ended March 31, 2014, executive officers exercised their rights to cancel 13,796 and 42,354 shares of common stock awarded to them under prior employment agreements and the incentive stock bonus granted to an executive officer in September 2012 for the payment of payroll taxes, to satisfy $27,731 and $75,106 of related payroll obligations, respectively.

	In summary, during the three and nine-months ended March 31, 2013, the Company recorded stock compensation expense of $149,009 and $369,233, and 57,650 and 320,300 shares of Common Stock vested, respectively; $29,375 and $44,532 for grants to the executive officers in April and September 2011, respectively; $33,334 for a special equity grant issued to an officer of the company in September 2012; $39,884 and $28,188 of expenses related to vesting of shares granted to employees in April 2012 and October 2012, respectively; $8,327, $6,594 and $28,999 of expenses related to vesting of shares granted to Directors of the Company in June 2011, March 2012 and July 2012, respectively; and $150,000 for shares issued to Company Directors in lieu of cash payment.

	As of March 31, 2013, the Company recorded a liability of $42,200, and reduction of expense for the three and nine-months then ended of $45,537 and $42,200, respectively, for the 2013 Performance Plan.

	Warrants were exercised during the three and nine-months ended March 31, 2014, resulting in the issuance of 0 and 2,090,226 shares of Common Stock, respectively, at $1.13 per share. The Company received cash proceeds of $549,493 and $2,361,955 during the three and nine-months ended March 31, 2014. On December 31, 2013, warrants to purchase 58,527 shares of Common stock, exercisable at $1.13 per share, expired unexercised.

	On September 14, 2013 warrants to purchase 903,955 shares of Common Stock, exercisable at $5.90 per share, expired unexercised.

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
COMMITMENTS AND CONTINGENCIES	Mar. 31, 2014
Commitments and Contingencies Disclosure [Abstract]	'
COMMITMENTS AND CONTINGENCIES	'
	9. COMMITMENTS AND CONTINGENCIES

	2014 STI PLAN

	On November 7, 2013, at the recommendation of the Compensation Committee, the Board of Directors approved the Fiscal Year 2014 Short-Term Incentive Plan (the “2014 STI Plan”) covering its two executive officers – CEO and CFO.

	The 2014 STI Plan provides that each executive officer would earn a cash bonus in the event that the Company achieved during the 2014 fiscal year certain annual financial goals and certain annual specific performance goals relating to the executive officer which are to be established by the Compensation Committee. At the time of the establishment of the 2014 STI Plan, the Compensation Committee believed that the attainment of the target goals under the plan would represent a significant achievement for management, and were designed to stretch the Company’s and management’s performance during the fiscal year.

	If none of the minimum threshold target goals are achieved, the executive officers would not earn a cash bonus. If all of the target goals are achieved, the executive officers would earn a cash bonus as follows: CEO – $51,184 (15% of base salary); and CFO – $29,283 (12.5% of base salary). If all of the maximum distinguished target goals are achieved, the executive officers would earn a cash bonus as follows: CEO – $102,368 (30% of base salary); and CFO – $58,566 (25% of base salary). Assuming the minimum threshold target goal would be achieved for a particular metric, the amount of the cash bonus to be earned would be determined on a pro rata basis, provided that the bonus would not exceed the maximum distinguished award for that metric.

	At March 31, 2014, the company recorded a liability of $20,346 and expense for the three and nine-months then ended of $6,359 and $20,346, respectively, for the 2014 STI Plan.

	EMPLOYMENT AGREEMENTS

	On November 7, 2013, the Company and its CFO, Mr. DeMedio, entered into an amendment to the employment agreement. The amendment to Mr. DeMedio’s employment agreement (the “DeMedio Amendment”) provides that (i) if following a change in control of the Company (as defined in the DeMedio Amendment) Mr. DeMedio would terminate his employment with the Company for good reason (as defined in the DeMedio Amendment), or (ii) if the Company would terminate his employment at any time without cause (as defined in the DeMedio Amendment), or (iii) if the Company would provide Mr. DeMedio with a notice of non-renewal of his employment agreement, then the Company would pay to him a lump sum equal to one times his base salary on or before the termination of his employment and all restricted stock awards would become vested as of the date of termination.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	9 Months Ended
SUBSEQUENT EVENTS	Mar. 31, 2014
Subsequent Events [Abstract]	'
SUBSEQUENT EVENTS	'
	10. SUBSEQUENT EVENTS

	LINE OF CREDIT

	In April 2014, the Company borrowed the remaining available credit of $1,000,000 under the existing agreement with the Bank.

ACCOUNTING_POLICIES_Policies

ACCOUNTING POLICIES (Policies)	9 Months Ended
ACCOUNTING POLICIES (Policies)	Mar. 31, 2014
Business Description And Accounting Policies [Abstract]	'
Interim Financial Information	'
	Interim Financial Information

	The accompanying unaudited consolidated financial statements of USA Technologies, Inc. have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements and therefore should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended June 30, 2013. In the opinion of management, all adjustments considered necessary for a fair presentation, consisting of normal recurring adjustments, have been included. Operating results for the three and nine-month periods ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending June 30, 2014. The balance sheet at June 30, 2013 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements.

	The Company had net income of $26,866,526 and $27,569,371 for the three and nine-month periods ended March 31, 2014, respectively. Included in net income is a benefit for income taxes of $26,727,720 and $26,713,897 for the three and nine-month periods ended March 31, 2014, respectively. The Company had net income of $854,123 for the year ended June 30, 2013. Net income includes adjustments for changes to the fair value of our warrant liabilities, which are subject to secondary market conditions, and are not reasonably predictable. The Company’s ability to meet its future obligations is dependent upon the success of its products and services in the marketplace and the available capital resources. Until the Company’s products and services can generate sufficient annual revenues, the Company will be required to use its cash and cash equivalents on hand, and its line of credit (see Note 4), and may raise capital to meet its cash flow requirements including the issuance of Common Stock or debt financing.
Consolidation	'
	Consolidation

	The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Stitch Networks Corporation (“Stitch”) and USAT Capital Corp LLC (“USAT Capital”). All significant intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	'
	Use of Estimates

	The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
Cash Equivalents	'
	Cash Equivalents

	Cash equivalents represent all highly liquid investments with original maturities of three months or less. Cash equivalents are comprised of money market funds. The Company maintains its cash in bank deposit accounts, which may exceed federally insured limits at times.

	At March 31, 2014 and June 30, 2013, none of the cash and cash equivalents of the Company was payable to our customers. Included in accounts receivable are amounts for transactions processed with our card processers for which cash has not been received by the Company and included in accounts payable are amounts for transactions processed with our card processers and due to our customers, which are recorded net of fees due to the Company. Generally, contractual terms require us to remit amounts owed to our customers on a weekly basis.
Finance Receivables	'
	Finance Receivables

	The Company offers extended payment terms to certain customers for equipment sales under its Quick Start Program. Notes receivable or Quick Start leases are generally for a 36 or 60 month term. Finance receivables are carried at their contractual amount and charged off against the allowance for credit losses when management determines that recovery is unlikely and the Company ceases collection efforts. The Company recognizes a portion of the note or lease payments as interest income in the accompanying consolidated financial statements based on the effective interest rate method.
Inventory	'
	Inventory

	Inventory consists of finished goods and packaging materials. The Company’s inventory is stated at the lower of cost (average cost basis) or market.
Fair Value of Financial Instruments	'
	Fair Value of Financial Instruments

	The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2010-06, “Fair Value Measurements and Disclosures (“Topic 820”): Improving Disclosures about Fair Value Measurements.” ASU 2010-06 amends certain disclosure requirements of Subtopic 820-10. This ASU provides additional disclosures for transfers in and out of Levels 1 and 2 and for activity in Level 3. This ASU also clarifies certain other existing disclosure requirements including level of desegregation and disclosures around inputs and valuation techniques.

	The Company’s financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy. The three levels are as follows:

	Level 1- Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

	Level 2- Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs).

	Level 3- Inputs are unobservable and reflect the Company’s assumptions that market participants would use in pricing the asset or liability. The Company develops these inputs based on the best information available.

	The Company’s financial instruments, principally cash equivalents, accounts receivable, finance receivables, prepaid expenses and other assets, accounts payable and accrued expenses, are carried at cost which approximates fair value due to the short-term maturity of these instruments. The fair value of the Company’s obligations under its long-term debt and credit agreements approximates their carrying value, as such instruments are at market rates currently available to the Company.
Property and Equipment	'
	Property and Equipment

	Property and equipment are recorded at cost. Property and equipment are depreciated on the straight-line basis over the estimated useful lives of the related assets. Leasehold improvements are amortized on the straight-line basis over the lesser of the estimated useful life of the asset or the respective lease term.
Accounting for Equity Awards	'
	Accounting for Equity Awards

	In accordance with ASC 718, the cost of employee services received in exchange for an award of equity instruments is based on the grant-date fair value of the award and allocated over the vesting period of the award.
Income Taxes	'
	Income Taxes

	Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets, including tax loss and credit carryforwards, and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on their characteristics. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.
Income (Loss) Per Common Share	'
	Income (Loss) Per Common Share

	Basic earnings (loss) per share are calculated by dividing income (loss) applicable to common shares by the weighted average common shares outstanding for the period. Diluted earnings per share is calculated by dividing income (loss) applicable to common shares by the weighted average common shares outstanding for the year plus the effect of potential common shares unless such effect is anti-dilutive.

FINANCE_RECEIVABLES_Tables

FINANCE RECEIVABLES (Tables)	9 Months Ended
FINANCE RECEIVABLES (Tables)	Mar. 31, 2014
Receivables [Abstract]	'
Schedule of finance receivables	'


		March 31,		June 30,
		2014		2013
		(unaudited)
	Total finance receivables	$	432,649	$	525,118
	Less current portion		106,837		116,444
	Non-current portion of finance receivables	$	325,812	$	408,674
Schedule of credit quality indicators	'



		Leases

	Performing	$	432,649
	Nonperforming		-
	Total	$	432,649
Schedule of age analysis of past due finance receivables	'


		31 – 60		61 – 90		Greater than		Total Past		Current		Total
		Days Past		Days Past		90 Days		Due				Finance Receivables
		Due		Due		Past Due

	Leases	$	2,525	$	751	$	1,490	$	4,766	$	427,883	$	432,649
	Total	$	2,525	$	751	$	1,490	$	4,766	$	427,883	$	432,649

ACCRUED_EXPENSES_Tables

ACCRUED EXPENSES (Tables)	9 Months Ended
ACCRUED EXPENSES (Tables)	Mar. 31, 2014
Accrued Liabilities [Abstract]	'
Schedule of accrued expenses	'


		March 31,		June 30,
		2014		2013
		(unaudited)
	Accrued compensation and related sales commissions	$	395,018	$	583,710
	Accrued professional fees		185,760		165,444
	Accrued taxes and filing fees		172,578		253,527
	Advanced customer billings		412,843		346,868
	Accrued rent		174,232		226,582
	Accrued other		193,554		258,838
		$	1,533,985	$	1,834,969

LONGTERM_DEBT_Tables

LONG-TERM DEBT (Tables)	9 Months Ended
LONG-TERM DEBT (Tables)	Mar. 31, 2014
Debt Disclosure [Abstract]	'
Schedule of long-term debt	'


		March 31,		June 30,
		2014		2013
		(unaudited)
	Capital lease obligations	$	531,525	$	345,925
	Loan agreement		35,261		23,981
			566,786		369,906
	Less current portion		249,915		247,152
		$	316,871	$	122,754

FAIR_VALUE_OF_FINANCIAL_INSTRU1

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	Mar. 31, 2014
Fair Value Disclosures [Abstract]	'
Schedule of fair value of financial instruments required to be measured at fair value	'


	March 31, 2014 (unaudited)	Level 1			Level 2			Level 3		Total

	Cash equivalents	$	-		$	-		$	-	$	-
	Common stock warrant liability, warrants exercisable at $2.6058 from September 18, 2011 through September 18, 2016	$	-		$	-		$	638,334	$	638,334

	June 30, 2013	Level 1			Level 2			Level 3		Total

	Cash equivalents	$	192,620		$	-		$	-	$	192,620
	Common stock warrant liability, warrants exercisable at $2.6058 from September 18, 2011 through September 18, 2016	$	-		$	-		$	650,638	$	650,638

Schedule of changes in fair value of the company's level 3 financial instruments	'


		Nine months ended
		March 31,
		2014			2013
		(unaudited)			(unaudited)
	Beginning balance	$	(650,638	)	$	(918,566	)
	Gain (loss) due to change in fair value of warrant liabilities, net		12,304			(1,249,456	)
	Ending balance	$	(638,334	)	$	(2,168,022	)

INCOME_TAXES_Tables

INCOME TAXES (Tables)	9 Months Ended
INCOME TAXES (Tables)	Mar. 31, 2014
Income Tax Disclosure [Abstract]	'
Schedule of income tax benefit in the provision for income taxes	'


		Three months ended			Nine months
		Three months ended			ended
		31-Mar-14			31-Mar-14

	Income before benefit from income taxes	$	138,806		$	855,474
	Estimated annual effective tax rate		0	%		0	%
	Provision (benefit) for income taxes	$	-		$	-
	Reversal of provision for income taxes recorded for the six months ended December 31, 2013	$	(13,823	)	$	-
	Benefit from reduction of valuation allowances		(26,713,897	)		(26,713,897	)
	Benefit from income taxes	$	(26,727,720	)	$	(26,713,897	)

ACCOUNTING_POLICIES_Detail_Tex

ACCOUNTING POLICIES (Detail Textuals) (USD $)	3 Months Ended		9 Months Ended		12 Months Ended
ACCOUNTING POLICIES (Detail Textuals) (USD $)	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013	Jun. 30, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'	'	'	'
Net income (loss)	$26,866,526	($1,015,943)	$27,569,371	($823,044)	$854,123
Provision for income taxes	($26,727,720)	$6,911	($26,713,897)	$20,734	'
Original maturities of all highly liquid investments represent cash equivalents	'	'	'three months or less	'	'
Quick start leases \| Minimum	'	'	'	'	'
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'	'	'	'
Term of notes receivable or quick start leases	'	'	'36 months	'	'
Quick start leases \| Maximum	'	'	'	'	'
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'	'	'	'
Term of notes receivable or quick start leases	'	'	'60 months	'	'

FINANCE_RECEIVABLES_Informatio

FINANCE RECEIVABLES - Information regarding finance receivables (Details) (USD $)	Mar. 31, 2014	Jun. 30, 2013
Receivables [Abstract]	'	'
Total finance receivables	$432,649	$525,118
Less current portion	106,837	116,444
Non-current portion of finance receivables	$325,812	$408,674

FINANCE_RECEIVABLES_Credit_ris

FINANCE RECEIVABLES - Credit risk profile based on payment activity (Details 1) (USD $)	Mar. 31, 2014	Jun. 30, 2013
Financing Receivable, Recorded Investment [Line Items]	'	'
Total finance receivables	$432,649	$525,118
Leases	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Total finance receivables	432,649	'
Leases \| Performing	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Total finance receivables	432,649	'
Leases \| Nonperforming	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Total finance receivables	'	'

FINANCE_RECEIVABLES_Age_analys

FINANCE RECEIVABLES - Age analysis of past due finance receivables (Details 2) (USD $)	Mar. 31, 2014	Jun. 30, 2013
Financing Receivable, Recorded Investment, Past Due [Line Items]	'	'
31-60 Days Past Due	$2,525	'
61-90 Days Past Due	751	'
Greater than 90 Days Past Due	1,490	'
Total Past Due	4,766	'
Current	427,883	'
Total Finance Receivables	432,649	525,118
Leases	'	'
Financing Receivable, Recorded Investment, Past Due [Line Items]	'	'
31-60 Days Past Due	2,525	'
61-90 Days Past Due	751	'
Greater than 90 Days Past Due	1,490	'
Total Past Due	4,766	'
Current	427,883	'
Total Finance Receivables	$432,649	'

ACCRUED_EXPENSES_Information_r

ACCRUED EXPENSES - Information regarding accrued expenses (Details) (USD $)	Mar. 31, 2014	Jun. 30, 2013
Accrued Liabilities [Abstract]	'	'
Accrued compensation and related sales commissions	$395,018	$583,710
Accrued professional fees	185,760	165,444
Accrued taxes and filing fees	172,578	253,527
Advanced customer billings	412,843	346,868
Accrued rent	174,232	226,582
Accrued other	193,554	258,838
Accrued expenses, Total	$1,533,985	$1,834,969

LINE_OF_CREDIT_Detail_Textuals

LINE OF CREDIT (Detail Textuals) (USD $)	3 Months Ended		9 Months Ended			1 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013	Jun. 30, 2013	Apr. 30, 2014
						Loan and Security Agreement
						Subsequent Event
Line of Credit Facility [Line Items]	'	'	'	'	'	'
Line of credit	$4,000,000	'	$4,000,000	'	$3,000,000	'
Line of credit available	1,000,000	'	1,000,000	'	'	'
Borrowed available credit	'	$1,000,000	$1,000,000	$2,000,000	'	$1,000,000
Covenant description	'one Monthly Liquidity covenant and one Adjusted EBITDA	'	'	'	'	'

LONGTERM_DEBT_Longterm_debt_De

LONG-TERM DEBT - Long-term debt (Details) (USD $)	Mar. 31, 2014	Jun. 30, 2013
Debt Instrument [Line Items]	'	'
Long-term debt	$566,786	$369,906
Less current portion	249,915	247,152
Long-term debt, less current portion	316,871	122,754
Capital Lease Obligations	'	'
Debt Instrument [Line Items]	'	'
Long-term debt	531,525	345,925
Loan agreement	'	'
Debt Instrument [Line Items]	'	'
Long-term debt	$35,261	$23,981

LONGTERM_DEBT_Detail_Textuals

LONG-TERM DEBT (Detail Textuals) (USD $)	1 Months Ended
	Aug. 31, 2013	Jul. 31, 2013	Feb. 28, 2014	Mar. 31, 2014
	Financing for insurance policies premium	Capital lease for office equipment	Capital lease for network equipment	Capital lease for leasehold improvements and office furniture
	Installment	Installment	Installment	Installment
Debt Instrument [Line Items]	'	'	'	'
Payment of finance long term debt	$101,850	$22,036	$195,725	$144,312
Number of installments	9	24	48	60
Debt payment terms	'Monthly	'Monthly	'Monthly	'Monthly
Amount of monthly installments finance long term debt	'	$1,033	$4,972	$2,998
Interest rate of finance long term debt	5.27%	'	'	'

FAIR_VALUE_OF_FINANCIAL_INSTRU2

FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair value of the company financial instruments that are required to be measured at fair value (Details) (USD $)	Mar. 31, 2014	Jun. 30, 2013
Level 1	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Cash equivalents	'	$192,620
Common stock warrant liability, warrants exercisable at $2.6058 from September 18, 2011 through September 18, 2016	'	'
Level 2	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Cash equivalents	'	'
Common stock warrant liability, warrants exercisable at $2.6058 from September 18, 2011 through September 18, 2016	'	'
Level 3	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Cash equivalents	'	'
Common stock warrant liability, warrants exercisable at $2.6058 from September 18, 2011 through September 18, 2016	638,334	650,638
Total	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Cash equivalents	'	192,620
Common stock warrant liability, warrants exercisable at $2.6058 from September 18, 2011 through September 18, 2016	$638,334	$650,638

FAIR_VALUE_OF_FINANCIAL_INSTRU3

FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair value of the company financial instruments that are required to be measured at fair value (Parentheticals) (unaudited) (Details)	Mar. 31, 2014	Jun. 30, 2013
Fair Value Disclosures [Abstract]	'	'
Exercise price per share	2.6058	2.6058

FAIR_VALUE_OF_FINANCIAL_INSTRU4

FAIR VALUE OF FINANCIAL INSTRUMENTS - Changes in fair value of the Company level 3 financial instruments (unaudited) (Details 1) (USD $)	9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]	'	'
Beginning balance	($650,638)	($918,566)
Gain (loss) due to change in fair value of warrant liabilities, net	12,304	-1,249,456
Ending balance	($638,334)	($2,168,022)

FAIR_VALUE_OF_FINANCIAL_INSTRU5

FAIR VALUE OF FINANCIAL INSTRUMENTS (Detail Textuals) (USD $)	Mar. 31, 2014	Jun. 30, 2013	Mar. 31, 2013	Jun. 30, 2012	Mar. 31, 2014	Jun. 30, 2013	Mar. 31, 2011	Mar. 31, 2014	Jun. 30, 2013
Share data in Millions, unless otherwise specified	Mar. 31, 2014	Jun. 30, 2013	Mar. 31, 2013	Jun. 30, 2012	Level 1	Level 1	Level 3	Level 3	Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'	'	'	'	'	'	'	'
Cash equivalents	'	'	'	'	'	$192,620	'	'	'
Fair value of common stock warrants	$638,334	$650,638	$2,168,022	$918,566	'	'	'	'	'
Purchase of company's common stock (in shares)	'	'	'	'	'	'	3.9	'	'
Valuation method used to determine fair value	'	'	'	'	'	'	'Proprietary valuation models	'	'

INCOME_TAXES_Details

INCOME TAXES (Details) (USD $)	3 Months Ended		9 Months Ended
INCOME TAXES (Details) (USD $)	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Income Tax Disclosure [Abstract]	'	'	'	'
Income before provision for income taxes	$138,806	($1,009,032)	$855,474	($802,310)
Estimated annual effective tax rate	0.00%	'	0.00%	'
Provision (benefit) for income taxes	'	'	'	'
Reversal of provision for income taxes recorded for the six months ended December 31, 2013	-13,823	'	'	'
Benefit from reduction of valuation allowances	-26,713,897	'	-26,713,897	'
Benefit from income taxes	($26,727,720)	$6,911	($26,713,897)	$20,734

INCOME_TAXES_Detail_Textuals

INCOME TAXES (Detail Textuals) (USD $)	3 Months Ended		9 Months Ended		12 Months Ended
INCOME TAXES (Detail Textuals) (USD $)	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013	Jun. 30, 2013
Income Tax Disclosure [Abstract]	'	'	'	'	'
Describes of valuation allowance reduction fact	'The reduction in the valuation allowance was primarily the result of the following facts at the point we reduced the allowance: (i) our net income of $854,123 for the 2013 fiscal year; (ii) our net income (excluding the benefit from income taxes related to the valuation allowance) of $873,170 during the first nine months of the 2014 fiscal year; (iii) our forecasts which show earnings sufficient to utilize these tax assets; and (iv) the nature of our recurring revenue service model which supports our forecasts of earnings.	'	'	'	'
Net Income (loss)	$26,866,526	($1,015,943)	$27,569,371	($823,044)	$854,123
Reduction valuation allowances recorded in prior periods	26,713,897	'	26,713,897	'	'
Deferred tax assets of valuation allowances	22,833,664	'	22,833,664	'	'
Reversal of provision for income taxes recorded	13,823	'	'	'	'
Provision for income taxes of deferred income taxes	6,911	'	20,734	'	'
Net income, excluding benefit from income taxes related to valuation allowance	'	'	873,170	'	'
Valuation allowances of relating to operating loss carryforward	$69,000,000	'	$69,000,000	'	'

COMMON_STOCK_AND_COMMON_STOCK_1

COMMON STOCK AND COMMON STOCK WARRANTS (Detail Textuals) (USD $)

3 Months Ended

9 Months Ended

1 Months Ended

0 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

Mar. 31, 2014

Jul. 31, 2012

Mar. 31, 2012

Jun. 30, 2011

Oct. 31, 2012

Apr. 30, 2012

Sep. 30, 2012

Sep. 30, 2011

Apr. 30, 2011

Nov. 07, 2013

Mar. 31, 2014

Directors

Employees

Executive officer

Chief Financial Officer ("CFO")

2010 Stock Incentive Plan

2011 Stock Incentive Plan

2012 Stock Incentive Plan

Performance Share Plan (the "2013 Plan")

Special Equity Plan

Directors

Employees and Directors

2014 LTI Stock Plan

Directors in lieu of cash payment

Chief Financial Officer ("CFO")

Non-executive employee

Executive officer

Stock bonus

Employment Agreement

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock compensation expense

$149,009

$369,233

$4,520

$6,024

$1,813

$15,553

$53,691

$227,303

$15,592

$41,512

$38,220

Number of common stock issued (in shares)

57,650

320,300

57,650

51,667

31,770

112,799

31,770

67,483

13,300

Awarded vested shares of common stock

21,000

Recorded liability on stock based plan

42,200

Stock compensation expense and expense reduction

5,527

45,537

42,200

Granted

33,334

44,532

29,375

Value of vesting of shares

28,999

6,594

8,327

28,188

39,884

Value of shares issued to directors in lieu of cash payment

150,000

6,902

38,099

153,098

Expenses related to shares issued to directors in lieu of cash payment

2,382

878

Number of common stock shares cancelled to pay payroll taxes (in shares)

13,796

42,354

Payment of payroll obligations

$27,731

$75,106

COMMON_STOCK_AND_COMMON_STOCK_2

COMMON STOCK AND COMMON STOCK WARRANTS (Detail Textuals 1) (2014 LTI Stock Plan, USD $)	9 Months Ended
	Mar. 31, 2014
Chief Executive Officer ("CEO") \| Year-over-year percentage target goals	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'
Value of shares to be awarded after achieving the target goal	$341,277
Base salary percentage of awarded shares	100.00%
Chief Executive Officer ("CEO") \| Maximum distinguished year-over-year percentage target goals	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'
Value of shares to be awarded after achieving the target goal	682,554
Base salary percentage of awarded shares	200.00%
Chief Financial Officer ("CFO") \| Year-over-year percentage target goals	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'
Value of shares to be awarded after achieving the target goal	175,698
Base salary percentage of awarded shares	75.00%
Chief Financial Officer ("CFO") \| Maximum distinguished year-over-year percentage target goals	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'
Value of shares to be awarded after achieving the target goal	$351,396
Base salary percentage of awarded shares	150.00%

COMMON_STOCK_AND_COMMON_STOCK_3

COMMON STOCK AND COMMON STOCK WARRANTS (Detail Textuals 2) (USD $)	Mar. 31, 2014	Jun. 30, 2013	Mar. 31, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 14, 2013
	Mar. 31, 2014	Jun. 30, 2013	Warrant	Warrant	Warrant	Warrant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'	'	'
Warrant exercised on issuance of common stock	'	'	0	2,090,226	'	'
Number of common stock called by warrants expired unexercised	'	'	'	'	58,527	903,955
Exercise price per share	2.6058	2.6058	1.13	1.13	1.13	5.9
Cash proceeds from common stock	'	'	$549,493	$2,361,955	'	'
Accounts receivable	$1,974,349	$2,620,684	'	'	'	'

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES (Detail Textuals) (2014 Short-Term Incentive Plan (the "2014 STI Plan"), USD $)	3 Months Ended	9 Months Ended		0 Months Ended				9 Months Ended
	Mar. 31, 2014	Mar. 31, 2014	Nov. 07, 2013	Nov. 07, 2013	Nov. 07, 2013	Nov. 07, 2013	Nov. 07, 2013	Mar. 31, 2014
			Executive_Officer	Stephen P. Herbert	Stephen P. Herbert	David M. DeMedio	David M. DeMedio	David M. DeMedio
				Year-over-year percentage target goals	Maximum distinguished year-over-year percentage target goals	Year-over-year percentage target goals	Maximum distinguished year-over-year percentage target goals	Maximum distinguished year-over-year percentage target goals
Commitment And Contingency [Line Items]	'	'	'	'	'	'	'	'
Number of executive officers	'	'	2	'	'	'	'	'
Cash bonus	'	'	'	$51,184	$102,368	$29,283	$58,566	'
Base salary percentage of cash bonus	'	'	'	15.00%	30.00%	12.50%	25.00%	75.00%
Liability	20,346	20,346	'	'	'	'	'	'
Expenses for plan	$6,359	$20,346	'	'	'	'	'	'

SUBSEQUENT_EVENTS_Details_Text

SUBSEQUENT EVENTS (Details Textuals) (USD $)	3 Months Ended	9 Months Ended		1 Months Ended
	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013	Apr. 30, 2014
				Subsequent Event
				Loan and Security Agreement
Subsequent Event [Line Items]	'	'	'	'
Borrowed credit	$1,000,000	$1,000,000	$2,000,000	$1,000,000