Cantaloupe (CTLP) 10-K 13 Sep 16 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Jun. 30, 2016	Aug. 25, 2016	Dec. 31, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	USA TECHNOLOGIES INC
Entity Central Index Key	896,429
Trading Symbol	usat
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Current Fiscal Year End Date	--06-30
Entity Filer Category	Accelerated Filer
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding		38,352,980
Entity Public Float			$ 106,506,967
Document Type	10-K
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Jun. 30, 2015
Current assets:
Cash	$ 19,272	$ 11,374
Accounts receivable, less allowance for doubtful accounts of $2,814 and $1,309, respectively	4,899	5,971
Finance receivables	3,588	941
Inventory, net	2,031	4,216
Prepaid expenses and other current assets	987	574
Deferred income taxes	2,271	1,258
Total current assets	33,048	24,334
Finance receivables, less current portion	3,718	3,698
Other assets	348	350
Property and equipment, net	9,765	12,869
Deferred income taxes	25,453	25,788
Intangibles, net	798	432
Goodwill	11,703	7,663
Total assets	84,833	75,134
Current liabilities:
Accounts payable	12,354	10,542
Accrued expenses	3,458	2,108
Line of credit, net	7,119	4,000
Current obligations under long-term debt	629	478
Income taxes payable	18	54
Warrant liabilities	3,739
Deferred gain from sale-leaseback transactions	860	860
Total current liabilities	28,177	18,042
Long-term liabilities:
Long-term debt, less current portion	1,576	1,854
Accrued expenses, less current portion	15	49
Warrant liabilities, less current portion		978
Deferred gain from sale-leaseback transactions, less current portion	40	900
Total long-term liabilities	1,631	3,781
Total liabilities	29,808	21,823
Commitments and contingencies (Note 18)
Shareholders' equity:
Preferred stock, no par value: Authorized shares- 1,800,000 Series A convertible preferred- Authorized shares- 900,000 Issued and outstanding shares- 445,063 with liquidation preference of $18,108 and $17,440, respectively	3,138	3,138
Common stock, no par value: Authorized shares- 640,000,000 Issued and outstanding shares- 37,783,444 and 35,763,663, respectively	233,394	224,874
Accumulated deficit	(181,507)	(174,701)
Total shareholders' equity	55,025	53,311
Total liabilities and shareholders' equity	$ 84,833	$ 75,134

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2016	Jun. 30, 2015
Allowance for uncollectible accounts receivable (in dollars)	$ 2,814	$ 1,309
Preferred stock, no par value (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized	1,800,000	1,800,000
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized	640,000,000	640,000,000
Common stock, shares issued	37,783,444	35,763,663
Common stock, shares outstanding	37,783,444	35,763,663
Series A Convertible Preferred Stock
Preferred stock, shares authorized	900,000	900,000
Preferred stock, shares issued	445,063	445,063
Preferred stock, shares outstanding	445,063	445,063
Preferred stock, liquidation preference value (in dollars)	$ 18,108	$ 17,440

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Revenues:
License and transaction fees	$ 56,589	$ 43,633	$ 35,638
Equipment sales	20,819	14,444	6,707
Total revenues	77,408	58,077	42,345
Cost of services	38,089	29,429	23,018
Cost of equipment	17,334	11,825	4,254
Total cost of sales	55,423	41,254	27,272
Gross profit	21,985	16,823	15,073
Operating expenses:
Selling, general and administrative	22,373	16,451	14,036
Depreciation and amortization	647	612	600
Impairment of intangible asset	432
Total operating expenses	23,452	17,063	14,636
Operating income (loss)	(1,467)	(240)	437
Other income (expense):
Interest income	320	83	30
Other income		52
Interest expense	(600)	(302)	(257)
Change in fair value of warrant liabilities	(5,674)	(393)	66
Total other income (expense), net	(5,954)	(560)	(161)
Income (loss) before benefit (provision) for income taxes	(7,421)	(800)	276
Benefit (provision) for income taxes	615	(289)	27,255
Net income (loss)	(6,806)	(1,089)	27,531
Cumulative preferred dividends	(668)	(668)	(668)
Net income (loss) applicable to common shares	$ (7,474)	$ (1,757)	$ 26,863
Net earnings (loss) per common share - basic (in dollars per share)	$ (0.21)	$ (0.05)	$ 0.77
Net earnings (loss) per common share - diluted (in dollars per share)	$ (0.21)	$ (0.05)	$ 0.77
Basic weighted average number of common shares outstanding (in shares)	36,309,047	35,719,211	34,667,769
Diluted weighted average number of common shares outstanding (in shares)	36,309,047	35,719,211	35,009,559

Consolidated Statements of Shar

Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Series A ConvertiblePreferred Stock	Common Stock	Accumulated Deficit	Total
Balance (As Reported) at Jun. 30, 2013	$ 3,138	$ 221,383	$ (201,143)	$ 23,378
Balance (Cumulative impact of prior period revisions (See Note 19 of the Notes to Consolidated Financial Statements))
Balance at Jun. 30, 2013	$ 3,138	$ 221,383	(201,143)	$ 23,378
Balance (in shares) (As Reported) at Jun. 30, 2013	442,968	33,284,232		35,514,685
Balance (in shares) (Cumulative impact of prior period revisions (See Note 19 of the Notes to Consolidated Financial Statements))	2,095	62,661
Balance (in shares) at Jun. 30, 2013	445,063	33,346,893		35,602,123
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of warrants		$ 2,362		$ 2,362
Exercise of warrants (in shares)		2,090,226
Stock based compensation 2010 Stock Incentive Plan		$ 6		$ 6
Stock based compensation 2010 Stock Incentive Plan (in shares) | As Reported				6,668
Stock based compensation 2010 Stock Incentive Plan (in shares)		3,334		3,334
Stock based compensation 2011 Stock Incentive Plan		$ 17		$ 17
Stock based compensation 2012 Stock Incentive Plan		$ 279		$ 279
Stock based compensation 2012 Stock Incentive Plan (In shares) | As Reported
Stock based compensation 2012 Stock Incentive Plan (In shares)		158,505		158,505
Stock based compensation 2013 Stock Incentive Plan		$ 227		$ 227
Stock based compensation 2013 Stock Incentive Plan (in shares) | As Reported				131,203
Stock based compensation 2013 Stock Incentive Plan (in shares)		55,810		55,810
Retirement of common stock		$ (89)		$ (89)
Retirement of common stock (in shares) | As Reported				49,311
Retirement of common stock (in shares)		(52,645)		52,645
Excess tax benefits from stock-based compensation		$ 25		$ 25
Net income (loss)			27,531	27,531
Balance at Jun. 30, 2014	$ 3,138	$ 224,210	(173,612)	$ 53,736
Balance (in shares) (As Reported) at Jun. 30, 2014				35,514,685
Balance (in shares) at Jun. 30, 2014	445,063	35,602,123		35,602,123
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock based compensation 2011 Stock Incentive Plan		$ 1		$ 1
Stock based compensation 2012 Stock Incentive Plan		$ 52		$ 52
Stock based compensation 2012 Stock Incentive Plan (In shares) | As Reported				88,991
Stock based compensation 2012 Stock Incentive Plan (In shares)		33,698		33,698
Stock based compensation 2013 Stock Incentive Plan		$ 293		$ 293
Stock based compensation 2013 Stock Incentive Plan (in shares) | As Reported				165,463
Stock based compensation 2013 Stock Incentive Plan (in shares)		159,741		159,741
Stock based compensation 2014 Stock Incentive Plan		$ 370		$ 370
Retirement of common stock		$ (62)		$ (62)
Retirement of common stock (in shares) | As Reported				31,899
Retirement of common stock (in shares)		(31,899)		31,899
Excess tax benefits from stock-based compensation		$ 10		$ 10
Net income (loss)			(1,089)	(1,089)
Balance at Jun. 30, 2015	$ 3,138	$ 224,874	(174,701)	$ 53,311
Balance (in shares) (As Reported) at Jun. 30, 2015				35,747,242
Balance (in shares) at Jun. 30, 2015	445,063	35,763,663		35,763,663
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Warrants issued in conjunction with Line of Credit Agreement		$ 52		$ 52
Reclass of fair value of warrant liability upon exercise of warrants		2,914		2,914
Exercise of warrants		$ 4,918		4,918
Exercise of warrants (in shares)		1,887,325
Stock based compensation 2013 Stock Incentive Plan		$ 513		513
Stock based compensation 2013 Stock Incentive Plan (in shares)		172,207
Stock based compensation 2014 Stock Incentive Plan		$ 336		336
Stock based compensation 2014 Stock Incentive Plan (in shares)		12,785
Retirement of common stock		$ (213)		(213)
Retirement of common stock (in shares)		(52,536)
Net income (loss)			(6,806)	(6,806)
Balance at Jun. 30, 2016	$ 3,138	$ 233,394	$ (181,507)	$ 55,025
Balance (in shares) at Jun. 30, 2016	445,063	37,783,444

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
OPERATING ACTIVITIES:
Net income (loss)	$ (6,806)	$ (1,089)	$ 27,531
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	849	716	529
(Gain) loss on disposal of property and equipment	(167)	(17)	4
Non-cash interest and amortization of debt discount	13		2
Bad debt expense	1,450	1,098	134
Depreciation	5,135	5,731	5,464
Amortization	87		22
Impairment of intangible asset	432
Change in fair value of warrant liabilities	5,674	393	(66)
Deferred income taxes, net	(660)	215	(27,301)
Gain on sale of finance receivables		(52)
Recognition of deferred gain from sale-leaseback transactions	(860)	(834)	(10)
Changes in operating assets and liabilities:
Accounts receivable	(375)	(2,539)	(204)
Finance receivables	(2,040)	(4,114)	53
Inventory	1,036	(1,931)	370
Prepaid expenses and other current assets	(763)	(304)	(191)
Accounts payable	1,814	941	460
Accrued expenses	1,266	55	267
Income taxes payable	383	33	21
Net cash provided by (used in) operating activities	6,468	(1,698)	7,085
INVESTING ACTIVITIES:
Purchase and additions of property and equipment	(536)	(60)	(111)
Purchase of property for rental program		(1,642)	(10,883)
Proceeds from sale of rental equipment under sale-leaseback transactions		4,994	2,995
Proceeds from sale of property and equipment	389	62	82
Cash paid for assets acquired from VendScreen	(5,625)
Net cash provided by (used in) investing activities	(5,772)	3,354	(7,917)
FINANCING ACTIVITIES:
Cash used in retirement of common stock	(213)	(62)	(89)
Proceeds from exercise of common stock warrants	4,918		2,362
Proceeds from line of credit	7,163		2,000
Repayment of line of credit	(3,992)	(1,000)
Repayment of long-term debt	(674)	(359)	(375)
Proceeds from long-term debt		2,057
Excess tax benefits from share-based compensation		10	25
Net cash provided by financing activities	7,202	646	3,923
Net increase in cash	7,898	2,302	3,091
Cash and cash equivalents at beginning of year	11,374	9,072	5,981
Cash at end of year	19,272	11,374	9,072
Supplemental disclosures of cash flow information:
Interest paid in cash	551	306	260
Income taxes paid in cash	501	31
Depreciation expense allocated to cost of services	4,575	5,120	4,881
Reclass of rental program property to inventory, net	1,150	674	33
Prepaid items financed with debt	103	103	102
Warrant issuance for debt discount	52
Debt financing costs financed with debt	79
Equipment and software acquired under capital lease	444	108	325
Disposal of property and equipment	$ 1,081	842	710
Disposal of property and equipment under sale-leaseback transactions		$ 3,873	$ 1,919

BUSINESS

BUSINESS	12 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BUSINESS	1. BUSINESS USA Technologies, Inc. (the “Company”, “We”, “USAT”, or “Our”) was incorporated in the Commonwealth of Pennsylvania in January 1992. We are a provider of technology-enabled solutions and value-added services that facilitate electronic payment transactions primarily within the unattended Point of Sale (“POS”) market. We are a leading provider in the small ticket, beverage and food vending industry and are expanding our solutions and services to other unattended market segments, such as amusement, commercial laundry, kiosk and others. Since our founding, we have designed and marketed systems and solutions that facilitate electronic payment options, as well as telemetry Internet of Things (“IoT”) and machine-to-machine (“M2M”) services, which include the ability to remotely monitor, control, and report on the results of distributed assets containing our electronic payment solutions. Historically, these distributed assets have relied on cash for payment in the form of coins or bills, whereas, our systems allow them to accept cashless payments such as through the use of credit or debit cards or other emerging contactless forms, such as mobile payment. All of our customers are located in North America.

ACCOUNTING POLICIES

ACCOUNTING POLICIES	12 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
ACCOUNTING POLICIES	2. ACCOUNTING POLICIES CONSOLIDATION The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. 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 The Company maintains its cash in bank deposit accounts, which may exceed federally insured limits at times. ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS Accounts receivable include amounts due to the Company for sales of equipment, other amounts due from customers, merchant service receivables, and unbilled amounts due from customers, net of the allowance for uncollectible accounts. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments, including from a shortfall in the customer transaction fund flow from which the Company would normally collect amounts due. The allowance is determined through an analysis of various factors including the aging of the accounts receivable, the strength of the relationship with the customer, the capacity of the customer transaction fund flow to satisfy the amount due from the customer, an assessment of collection costs and other factors. The allowance for doubtful accounts receivable is management’s best estimate as of the respective reporting date. The Company writes off accounts receivable against the allowance when management determines the balance is uncollectible and the Company ceases collection efforts. Management believes that the allowance recorded is adequate to provide for its estimated credit losses. FINANCE RECEIVABLES The Company offers extended payment terms to certain customers for equipment sales under its Quick Start Program. In accordance with the Financial Accounting Standards Board Accounting Standards Codification® (“ASC”) Topic 840, “Leases”, agreements under the Quick Start Program qualify for sales-type lease accounting. Accordingly, the future minimum lease payments are classified as finance receivables in the Company’s consolidated balance sheets. Finance receivables or Quick Start leases are generally for a sixty 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, Net Inventory consists of finished goods and packaging materials. The Company’s inventory is stated at the lower of cost (average cost basis) or market. PROPERTY AND EQUIPMENT, Net 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. GOODWILL AND INTANGIBLE ASSETS The Company’s intangible assets include goodwill, trademarks, non-compete agreements, brand, developed technology and customer relationships. The Company’s trademarks with an indefinite economic life are not being amortized. The trademarks, not subject to amortization, are related to the EnergyMiser asset group and consist of four trademarks. The Company tests indefinite-life intangible assets for impairment using a two-step process. The first step screens for potential impairment, while the second step measures the amount of impairment. The Company uses a relief from royalty analysis to complete the first step in this process. Testing for impairment is to be done at least annually and at other times if events or circumstances arise that indicate that impairment may have occurred. The Company has selected April 1 as its annual test date for its indefinite-lived intangible assets. The Company concluded there was no impairment of trademarks during the fiscal years ended June 30, 2015 and 2014, respectively. During the fourth quarter of the fiscal year ended June 30, 2016, the fair value of the trademarks were determined to have inconsequential value based on the “relief from royalty” methodology. This assessment resulted in an impairment write-down during the fourth fiscal quarter of $432 thousand, which is included in “Impairment of intangible asset” in the Consolidated Statement of Operations for the fiscal year ended June 30, 2016. (See Note 7 Goodwill and Intangible Assets for details.) Goodwill represents the excess of cost over fair value of the net assets purchased in acquisitions. The Company accounts for goodwill in accordance with ASC 350, “Intangibles – Goodwill and Other”. Under ASC 350, goodwill is not amortized to earnings, but instead is subject to periodic testing for impairment. Testing for impairment is to be done at least annually and at other times if events or circumstances arise that indicate that impairment may have occurred. The Company has selected April 1 as its annual test date. The Company has concluded there has been no impairment of goodwill during the fiscal years ended June 30, 2016, 2015 and 2014, respectively. LONG-LIVED ASSETS In accordance with ASC 360, “Impairment or Disposal of Long-Lived Assets”, the Company reviews its definite lived long-lived assets whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If the carrying amount of an asset or group of assets exceeds its net realizable value, the asset will be written down to its fair value. In the period when the plan of sale criteria of ASC 360 are met, definite lived long-lived assets are reported as held for sale, depreciation and amortization cease, and the assets are reported at the lower of carrying value or fair value less costs to sell. The Company has concluded that the carrying amount of definite lived long-lived assets is recoverable as of June 30, 2016 and 2015. 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 accounted for in accordance with ASC 820 “Fair Value Measurement.” Under ASC 820 the Company uses inputs from the three levels of the fair value hierarchy to measure its financial assets and liabilities. 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 accounts receivable, short-term 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 agreements and the long-term portion of its finance receivables approximate their carrying value as such instruments are at market rates currently available to the Company. CONCENTRATION OF RISK Financial instruments that subject the Company to a concentration of credit risk consist principally of cash and accounts and finance receivables. The Company maintains cash with various financial institutions where accounts may exceed federally insured limits at times. Approximately 18%, 35% and 22% of the Company’s trade accounts and finance receivables at June 30, 2016, 2015 and 2014, respectively, were concentrated with one customer. Concentration of revenues with customers subject the Company to operating risks. Approximately 16%, 21% and 26% of the Company’s license and transaction processing revenues for the years ended June 30, 2016, 2015 and 2014, respectively, were concentrated with one customer. Approximately 28% and 17% of the Company’s equipment sales revenue were concentrated with one customer for the years ended June 30, 2016 and 2015, respectively, with no concentrations for the year ended June 30, 2014. The Company’s customers are principally located in the United States. REVENUE RECOGNITION Revenue from the sale or QuickStart lease of equipment is recognized on the terms of free-on-board shipping point. Activation fee revenue, if applicable, is recognized when the Company’s cashless payment device is initially activated for use on the Company network. Transaction processing revenue is recognized upon the usage of the Company’s cashless payment and control network. License fees for access to the Company’s devices and network services are recognized on a monthly basis. In all cases, revenue is only recognized when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed and determinable, and collection of the resulting receivable is reasonably assured. The Company estimates an allowance for product returns at the date of sale and license and transaction fee refunds on a monthly basis. ePort hardware is available to customers under the QuickStart program pursuant to which the customer would enter into a five-year non-cancelable lease with either the Company or a third-party leasing company for the devices. The Company qualifies for sales type lease accounting. Accordingly, the company recognizes a portion of lease payments as interest income. At the end of the lease period, the customer would have the option to purchase the device at its residual value. EQUIPMENT RENTAL The Company offers its customers a rental program for its ePort devices, the JumpStart program (“JumpStart”). JumpStart terms are typically 36 months and are cancellable with thirty to sixty days’ written notice. In accordance with ASC 840, “Leases”, the Company classifies the rental agreements as operating leases, with service fee revenue related to the leases included in license and transaction fees in the Consolidated Statements of Operations. Cost for the JumpStart revenues, which consists of depreciation expense on the JumpStart equipment, is included in cost of services in the Consolidated Statements of Operations. ePort equipment utilized by the JumpStart program is included in property and equipment, net on the Consolidated Balance Sheet. WARRANTY COSTS The Company generally warrants its products for one to three years. Warranty costs are estimated and recorded at the time of sale based on historical warranty experience, if available. These costs are reviewed and adjusted, if necessary, periodically throughout the year. SHIPPING AND HANDLING Shipping and handling fees billed to our customers in connection with sales are recorded as revenue. The costs incurred for shipping and handling of our product are recorded as cost of equipment. ADVERTISING Advertising costs are expensed as incurred. Advertising expense was $0.3 million, $0.2 million, and $0.2 million in the fiscal years ended June 30, 2016, 2015, and 2014, respectively. RESEARCH AND DEVELOPMENT EXPENSES Research and development expenses are expensed as incurred. Research and development expenses, which are included in selling, general and administrative expenses in the Consolidated Statements of Operations, were approximately $1.4 million, $1.5 million and $1.0 million, for the years ended June 30, 2016, 2015, and 2014, respectively. Our research and development initiatives focus on adding features and functionality to our system solutions through the development and utilization of our processing and reporting network and new technology. 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 requisite service period of the award. Litigation Costs From time to time, we are involved in litigation, claims, contingencies and other legal matters. We record a charge equal to at least the minimum estimated liability for a loss contingency when both of the following conditions are met: (i) information available prior to issuance of the financial statements indicates that it is probable that an asset had been impaired or a liability had been incurred at the date of the financial statement and (ii) the range of the loss can be reasonably estimated. We expense legal costs, including those legal costs expected to be incurred in connection with a loss contingency, as incurred. INCOME TAXES The Company follows the provisions of FASB ASC 740, Accounting for Uncertainty in Income Taxes, Income taxes are computed using the asset and liability method of accounting. Under the asset and liability method, a deferred tax asset or liability is recognized for estimated future tax effects attributable to temporary differences and carryforwards. The measurement of deferred income tax assets is adjusted by a valuation allowance, if necessary, to recognize future tax benefits only to the extent, based on available evidence, it is more likely than not such benefits will be realized. The Company recognizes interest and penalties, if any, related to uncertain tax positions in selling, general and administrative expenses. No interest or penalties related to uncertain tax positions were accrued or incurred during the years ended June 30, 2016, 2015, and 2014. The Company files income tax returns in the United States federal jurisdiction and various state jurisdictions. The tax years ended June 30, 2013 through June 30, 2016 remain open to examination by taxing jurisdictions to which the Company is subject. As of June 30, 2016, the Company did not have any income tax examinations in process. EARNINGS (LOSS) PER COMMON SHARE Basic earnings (loss) per share are calculated by dividing net income (loss) applicable to common shares by the weighted average common shares outstanding for the period. Diluted earnings (loss) per share are calculated by dividing net income (loss) applicable to common shares by the weighted average common shares outstanding for the period plus the dilutive effects of common stock equivalents unless the effects of such common stock equivalents are anti-dilutive. For the years ended June 30, 2016, 2015 and 2014 no effect for common stock equivalents was considered in the calculation of diluted earnings (loss) per share because their effect was anti-dilutive. The consolidated financial statements included in this Form 10-K reflect additional shares of common stock and preferred stock that had been issued and outstanding in prior periods but were not reflected as such in previous consolidated financial statements as explained in Note 19. The basic and diluted weighted average number of common shares outstanding for the years ended June 30, 2015 and 2014 have been adjusted to reflect the additional number of shares pertaining to each of those years. The foregoing adjustments in basic and diluted weighted common shares outstanding did not affect the previously reported net loss per common share-basic or diluted for the year ended June 30, 2015. The previously reported net income per common share-basic and diluted for the year ended June 30, 2014 was decreased from $.78 to $.77 as a result of the foregoing adjustments. SOFTWARE DEVELOPMENT COSTS Costs incurred during the preliminary project along with post-implementation stages of internal use computer software development and costs incurred to maintain existing product offerings are expensed as incurred. The capitalization and ongoing assessment of recoverability of development costs require considerable judgment by management with respect to certain external factors, including, but not limited to, technological and economic feasibility and estimated economic life. At June 30, 2016, the Company had $137 thousand in capitalized software development which is being amortized over a period of three years. OTHER COMPREHENSIVE INCOME ASC 220, “Comprehensive Income”, prescribes the reporting required for comprehensive income and items of other comprehensive income. Entities having no items of other comprehensive income are not required to report on comprehensive income. The Company has no items of other comprehensive income for its years ended June 30, 2016, 2015 or 2014. RECENT ACCOUNTING PRONOUCEMENTS The Company is evaluating whether the effects of the following recent accounting pronouncements or any other recently issued, but not yet effective accounting standards, will have a material effect on the Company’s consolidated financial position, results of operations or cash flows. In May 2014, the Financial Accounting Standards Board issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU was amended by ASU No. 2015-14, issued in August 2015, which deferred the original effective date by one year. The new guidance provides a single model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. The new standard also requires expanded qualitative and quantitative disclosures about the nature, timing and uncertainty of revenue and cash flows rising from contracts with customers. The ASU is now effective for fiscal years, and interim reporting periods within those years, beginning with the year ending June 30, 2019. In June 2014, the Financial Accounting Standards Board issued ASU 2014-12 Compensation - Stock Compensation (Topic 718); Accounting for share-based payments when the terms of the award provide that a performance target could be achieved after the requisite service period. Under the new guidance an entity will not record compensation expense related to an award until it becomes probable that the performance target will be met. This pronouncement will be effective for the Company beginning with the year ending June 30, 2017. In April 2015, the Financial Accounting Standards Board issued ASU 2015-03 Interest - Imputation of Interest (Subtopic 835-30): Simplifying the presentation of debt issuance costs. This standard is part of FASB’s simplification initiative which has as its objective to identify, evaluate, and improve areas where cost and complexity can be reduced while maintaining or improving the usefulness of the information for users. The Company adopted this pronouncement for the year ended June 30, 2016. In July 2015, the Financial Accounting Standards Board issued ASU 2015-11 Inventory (Topic 330): Simplifying the measurement of inventory. This standard is part of FASB’s simplification initiative which has as its objective to identify, evaluate, and improve areas where cost and complexity can be reduced while maintaining or improving the usefulness of the information for users. This pronouncement will be effective for the Company beginning with the year ending June 30, 2018. In September 2015, the Financial Accounting Standards Board issued ASU 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments". ASU 2015-16 eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. ASU 2015-16 will be effective for the Company beginning with the quarter ending September 30, 2016. Since this standard is prospective, the impact of ASU 2015-16 on the Company's financial condition, results of operations and cash flows will depend upon the nature of any measurement period adjustments identified in future periods. In November 2015, the Financial Accounting Standards Board issued ASU 2015-17, "Balance Sheet Classification of Deferred Taxes" ("ASU 2015-17"), which will require entities to present all deferred tax liabilities and assets as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. The standard will be effective for the Company beginning with the quarter ending September 30, 2017. Early application is permitted. The standard can be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. In February 2016, the Financial Accounting Standards Board issued ASU 2016-02 “Leases” (Topic 842). Under the new guidance, those leases classified as operating leases under previous GAAP, will be recognized on our consolidated balance sheet as liabilities with corresponding right-of-use assets. This pronouncement will be effective for the Company beginning with the year ending June 30, 2018. In March 2016, the Financial Accounting Standards Board issued ASU 2016-09 Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The new guidance simplifies several aspects of accounting and presentation for share-bases compensation. This pronouncement will be effective for the Company beginning with the year ending June 30, 2018. In August 2016, the Financial Accounting Standards Board issued ASU 2016-15 Statement of Cash Flows Classification of Certain Cash Receipts and Cash Payments (Topic 230). This update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. This pronouncement will be effective for the Company beginning with the year ending June 30, 2018. There are three amendments to ASU 2014-09 issued in 2016. They are ASU 2016-08, issued in March 2016 Revenue from Contracts with Customers (Topic 606) Principal versus Agent Considerations which clarifies those relationships with the customer, ASU 2016-10, issued in April 2016 Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing, what is the entity’s obligations to its customer and what is the customer’s entitlement in the license agreements and ASU 2016-12, issued in April 2016 Revenue from Contracts with Customers (Topic 606), Narrow Scope Improvements and Practical Expedients, guidance on assessing collectability, presentation of sales taxes, noncash consideration, and completed contract modifications at transition. These amendments to ASU 2014-09 are now effective for fiscal years, and interim reporting periods within those years, beginning with the year ending June 30, 2019. RECLASSIFICATION As reported in the Company’s Form 10-Q for the quarter ended September 30, 2015, commencing with the September 30, 2015 financial statements, the Company changed the manner in which it presents certain uncollected customer accounts receivable and the related allowance in its consolidated balance sheets and the related statements of cash flows. These accounts receivable represent a large number of small balance amounts due from customers for processing and service fees which had not been billed to customers, and as to which, there had been no customer transaction proceeds from which the Company could collect the amounts due in accordance with its normal procedures. The previous accounting classification recorded these amounts as a reduction of its accounts payable in the consolidated balance sheets and the related statements of cash flows. The new accounting classification moves these amounts to accounts receivable and allowance for bad debt. ($ in thousands) June 30, 2015 Balances Consolidated Balance Sheet Line Items As previously Reclassification As reclassified Accounts Receivable, net of allowance for doubtful accounts: ·Reclassification of balances included in accounts payable to accounts receivable $ 2,114 ·Reclassification of the allowance for doubtful accounts in accounts payable (815 ) $ 4,672 $ 1,299 $ 5,971 Allowance for Doubtful Accounts: ·Reclassification of the allowance for doubtful accounts in accounts payable $ (494 ) $ (815 ) $ (1,309 ) Accounts Payable: ·Reclassification of balances included in accounts payable to accounts receivable $ 2,114 ·Reclassification of the allowance for doubtful accounts in accounts payable (815 ) $ 9,243 $ 1,299 $ 10,542 Accordingly, the respective balances for all prior periods presented in these financial statements were reclassified in order to be consistent with and comparable to the accounting classification of these items in our June 30, 2015 financial statements. The new accounting classification as well as the reclassification for prior periods had no effect on the consolidated statements of operations or the consolidated statements of shareholders’ equity. The details of the reclassification of the consolidated balance sheets were disclosed in the Company’s Form 10-Q for the quarter ended September 30, 2015. The consolidated statements of cash flows amounts are presented in the table below: ($ in thousands) For the fiscal year ended June 30, 2015 Consolidated Statement of Cash Flow Line Items As previously Reclassification As reclassified Accounts Receivable ·Reclassification of cash provided by and included in accounts payable to accounts receivable $ (2,517 ) $ (22 ) $ (2,539 ) Accounts Payable: ·Reclassification of cash used in and included in accounts payable to accounts receivable $ 919 $ 22 $ 941 ($ in thousands) For the fiscal year ended June 30, 2014 Consolidated Statement of Cash Flow Line Items As previously Reclassification As reclassified Accounts Receivable ·Reclassification of cash provided by and included in accounts payable to accounts receivable $ (157 ) $ (47 ) $ (204 ) Accounts Payable: ·Reclassification of cash used in and included in accounts payable to accounts receivable $ 413 $ 47 $ 460

ACQUISITION

ACQUISITION	12 Months Ended
	Jun. 30, 2016
Business Combinations [Abstract]
ACQUISITION	3. ACQUISITION VENDSCREEN, INC. On January 15, 2016, the Company executed an Asset Purchase Agreement with VendScreen, Inc. (“VendScreen”), a Portland, Oregon based developer of vending industry cashless payment technology, by which it acquired substantially all of VendScreen’s assets and assumed specified liabilities, for a cash payment of $5.625 million. The purchase price was funded using $2.625 million in cash, and the balance of $3.0 million from a term loan which was converted from a line of credit. This acquisition expands the Company’s capability with interactive media (touchscreen) and content delivery through VendScreen’s cloud-based content delivery platform, device platform and products, customer base, vendor management system (VMS) integration, and consumer product information including nutritional data. In addition to new technology and services, the acquisition adds a West Coast operational footprint, with former VendScreen employees able to offer expanded customer services, sales and technical support. On the date of the acquisition, VendScreen had approximately 150 customers with approximately 6,000 connections. Of those 150 customers approximately 50% are new customers of USAT. The following table summarizes the preliminary purchase price allocation to reflect the fair values of the assets acquired and liabilities assumed at the date of acquisition. ($ in thousands) Consideration: Fair value of total consideration paid in cash $ 5,625 Acquisition / non-recurring acquisition expenses: $ 842 Recognized amounts of identifiable assets acquired and liabilities assumed: Financial Assets: Accounts receivable $ 3 Finance receivables 628 Other current assets 20 Deferred income taxes 18 669 Property, plant & equipment 81 Identifiable intangible assets: Developed technology 639 Customer relationships 149 Brand 95 Noncompete agreements 2 Fair value of intangible assets 885 Financial liabilities Accrued liabilities (50 ) Total identifiable net assets 1,585 Goodwill 4,040 Total Fair Value $ 5,625 Of the $885 thousand of acquired intangible assets, $639 thousand was assigned to Developed Technology that is subject to amortization over 5 years, $149 thousand was assigned to Customer Relationships which are subject to amortization over 10 years; $2 thousand was assigned to a non-compete agreement that is subject to amortization over 2 years, and $95 thousand was assigned to the Brand that is subject to amortization over 3 years. All of the intangible assets are amortizable for income tax purposes. VendScreen has been included in the accompanying consolidated financial statements of the Company since the date of acquisition. The $842 thousand of acquisition / non-recurring expenses consists of non-recurring expenses incurred in connection with the acquisition and integration of the VendScreen business and were included in SG&A expenses during the 1 year ended June 30, 2016. The acquired business contributed net revenues of $1.2 million during the fiscal year ended June 30, 2016. ASC No. 2010-29 requires the disclosure of additional information including the amounts of earnings of the acquiree since the acquisition date included in the consolidated income statement, and the revenue and earnings of the combined entity as though the business combination that occurred during the current year had occurred at the beginning of the prior annual reporting period (supplemental pro forma information). The disclosure of such information was impractical and is not provided as (1) the acquiree had been integrated into the Company’s operation such that discreet financial information of the acquiree could not be determined, and (2) the financial records of the acquiree were not adequate to allow the preparation of supplemental pro forma information.

EARNINGS PER SHARE CALCULATION

EARNINGS PER SHARE CALCULATION	12 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
EARNINGS PER SHARE CALCULATION	4. EARNINGS PER SHARE CALCULATION The calculation of basic earnings per share (“eps”) and diluted earnings per share is presented below: Year Ended June 30 ($ in thousands, except per share data) 2016 2015 2014 Numerator for basic and diluted earnings per share Net income (loss) $ (6,806 ) $ (1,089 ) $ 27,531 Preferred dividends (668 ) (668 ) (668 ) Net income (loss) available to common shareholders $ (7,474 ) $ (1,757 ) $ 26,863 Denominator for basic earnings per share 36,309,047 35,719,211 34,667,769 Effect of dilutive potential common shares - - 341,790 Denominator for diluted earnings per share 36,309,047 35,719,211 # 35,009,559 Basic earnings (loss) per share $ (0.21 ) $ (0.05 ) $ 0.77 Diluted earnings (loss) per share $ (0.21 ) $ (0.05 ) $ 0.77 Antidilutive shares excluded from the calculation of diluted earnings per share were 1,168,689, 252,827 and 98,497 for the years ended June 30, 2016, 2015 and 2014, respectively.

FINANCE RECEIVABLES

FINANCE RECEIVABLES	12 Months Ended
	Jun. 30, 2016
Receivables [Abstract]
FINANCE RECEIVABLES	5. FINANCE RECEIVABLES Finance receivables consist of the following: June 30, June 30, ($ in thousands) 2016 2015 Total finance receivables $ 7,306 $ 4,639 Less current portion 3,588 941 Non-current portion of finance receivables $ 3,718 $ 3,698 Credit quality indicators consist of the following: Credit Quality Indicators Credit risk profile based on payment activity: June 30, June 30, 2016 2015 ($ in thousands) Performing $ 7,174 $ 4,619 Nonperforming 132 20 Total $ 7,306 $ 4,639 Age Analysis of Past Due Finance Receivables As of June 30, 2016 31 – 60 61 – 90 Greater than Total ($ in thousands) Days Past Days Past 90 Days Past Total Past Current Finance QuickStart Leases $ 98 $ 31 $ 3 $ 132 $ 7,174 $ 7,306 Age Analysis of Past Due Finance Receivables As of June 30, 2015 31 – 60 61 – 90 Greater than Total ($ in thousands) Days Past Days Past 90 Days Past Total Past Current Finance QuickStart Leases $ - $ 16 $ 5 $ 21 $ 4,618 $ 4,639 Finance receivables due for each of the fiscal years following June 30, 2016 are as follows: ($ in thousands) 2017 $ 3,588 2018 1,246 2019 1,246 2020 944 2021 and beyond 282 $ 7,306

PROPERTY AND EQUIPMENT, net

PROPERTY AND EQUIPMENT, net	12 Months Ended
	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT, net	6. PROPERTY AND EQUIPMENT, net Useful June 30, 2016 ($ in thousands) Lives Cost Accumulated Net Computer equipment and software 3-7 years $ 5,506 $ (4,374 ) $ 1,132 Property and equipment used for rental program 5 years 26,648 (18,246 ) 8,402 Furniture and equipment 3-7 years 874 (654 ) 220 Leasehold improvements Lesser of life or lease term 575 (564 ) 11 $ 33,603 $ (23,838 ) $ 9,765 Useful June 30, 2015 ($ in thousands) Lives Cost Accumulated Net Computer equipment and purchased software 3-7 years $ 4,670 $ (4,017 ) $ 653 Property and equipment used for rental program 5 years 26,469 (14,476 ) 11,993 Furniture and equipment 3-7 years 723 (572 ) 151 Leasehold improvements Lesser of life or lease term 575 (503 ) 72 $ 32,437 $ (19,568 ) $ 12,869 Assets under capital leases totaled approximately $2.6 million and $2.1 million as of June 30, 2016 and 2015, respectively. Capital lease amortization of approximately $271 thousand, $349 thousand and $305 thousand, is included in depreciation expense for the years ended June 30, 2016, 2015, and 2014, respectively.

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	12 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS	7. GOODWILL AND INTANGIBLE ASSETS Amortization expense relating to all acquired intangible assets was approximately $87 thousand, $0 and $22 thousand during each of the years ended June 30, 2016, 2015 and 2014, respectively. Intangible asset balances consisted of the following: Beginning Year ended June 30, 2016 Ending ($ in thousands) Balance Additions/ Balance Amortization July 1, 2015 Adjustments Amortization June 30, 2016 Period Intangible Assets: Trademarks - Indefinite $ 432 $ (432 )(1) $ - $ - Indefinite Non-compete agreements - 2 (1 ) 1 2 years Brand - 95 (16 ) 79 3 years Developed technology - 639 (63 ) 576 5 years Customer relationships - 149 (7 ) 142 10 years Total Intangible Assets $ 432 $ 453 $ (87 ) $ 798 Goodwill 7,663 4,040 - 11,703 Indefinite Total Intangible Assets & Goodwill $ 8,095 $ 4,493 $ (87 ) $ 12,501 Beginning Year ended June 30, 2015 Ending ($ in thousands) Balance Additions/ Balance Amortization July 1, 2014 Adjustments Amortization June 30, 2015 Period Intangible assets: Trademarks - Indefinite $ 432 - - $ 432 Indefinite Total Intangible Assets $ 432 $ - $ - $ 432 Goodwill 7,663 - - 7,663 Indefinite Total $ 8,095 $ - $ - $ 8,095 (1) The Company’s test for impairment of its indefinite-lived trademarks consists of the trademarks: 1) VendingMiser, 2) CoolerMiser, 3) PlugMiser and 4) SnackMiser. As a result of its testing in fiscal years ended June 30, 2015 and 2014 the Company determined that no impairment had occurred. In the testing in fiscal year 2016, the Company determined that the sum of the expected discounted cash flows attributable to the trademarks was less than its carrying value of $432 thousand, and that an impairment write-down was required. The fair value of the trademarks was determined by a method known as “relief from royalty”, in which the fair value is determined by reference to the amount of royalty income the intangible would generate if it were licensed in an arm’s-length transaction. The essential assumptions in a valuation via an income approach are as follows: · The related dollar sales volume; · The percentage royalty on sales; · The adjustment for taxes; · The remaining useful economic life; · The percentage return on investment; and, · The tax amortization benefit. During the fourth quarter of the fiscal year ended June 30, 2016, the fair value of the trademarks was determined to have inconsequential value based on the “relief from royalty” methodology. This assessment resulted in an impairment write-down during the fourth fiscal quarter of $432 thousand, which is included in “Impairment of intangible asset” in the Consolidated Statement of Operations for the fiscal year ended June 30, 2016. At June 30, 2016, amortizable intangible asset balances were: ($ in thousands) Cost Accumulated Net Book Value Non-compete agreements $ 2 $ (1 ) $ 1 Brand 95 (16 ) $ 79 Developed Technology 639 (63 ) $ 576 Customer Relationships 149 (7 ) $ 142 $ 885 $ (87 ) $ 798 There were no amortizable intangible assets at June 30, 2015. Estimated annual amortization expense for amortizable intangible assets is as follows: 2017 $ 175 2018 175 2019 159 2020 143 2021 79 Thereafter 67 $ 798

ACCRUED EXPENSES

ACCRUED EXPENSES	12 Months Ended
	Jun. 30, 2016
Accrued Liabilities [Abstract]
ACCRUED EXPENSES	8. ACCRUED EXPENSES Accrued expenses consist of the following: June 30, June 30, ($ in thousands) 2016 2015 Accrued compensation and related sales commissions $ 1,268 $ 673 Accrued professional fees 809 301 Accrued taxes and filing fees 795 505 Advanced customer billings 236 390 Accrued rent 2 75 Accrued other 363 213 3,473 2,157 Less current portion (3,458 ) (2,108 ) $ 15 $ 49

LINE OF CREDIT

LINE OF CREDIT	12 Months Ended
	Jun. 30, 2016
Line Of Credit Facility [Abstract]
LINE OF CREDIT	9. LINE OF CREDIT On January 15, 2016, the Company and Avidbank Corporate Finance, a division of Avidbank (“Avidbank”) entered into a Fifteenth Amendment (the “Amendment”) to the Loan and Security Agreement (as amended, the “Avidbank Loan Agreement”) previously entered into between them. The Avidbank Loan Agreement provided for a secured asset-based revolving line of credit facility (the “Avidbank Line of Credit”) of up to $7.0 million. The outstanding balance of the amounts advanced under the Avidbank Line of Credit bear interest at 2% above the prime rate as published in The Wall Street Journal The Wall Street Journal On March 29, 2016, the Company entered into a Loan and Security Agreement and other ancillary documents (the “Heritage Loan Documents”) with Heritage Bank of Commerce (“Heritage Bank”), providing for a secured asset-based revolving line of credit in an amount of up to $12.0 million (the “Heritage Line of Credit”). The Company utilized approximately $7.0 million under the Heritage Line of Credit to satisfy the existing Avidbank Line of Credit and related Term Loan, and approximately $80 thousand under the Heritage Line of Credit to pay closing fees, recorded as a debt discount, of Heritage Bank. The amount of advances remaining available to the Company under the Heritage Line of Credit as of June 30, 2016 was approximately $4.8 million. The Heritage Loan Documents provide that the aggregate amount of advances under the Heritage Line of Credit shall not exceed the lesser of (i) $12.0 million, or (ii) eighty-five percent (85%) of license and transaction fee revenue (as is reflected as such in the Company’s consolidated statement of operations) for the preceding three (3) calendar months. The outstanding daily balance of the amounts advanced under the Heritage Line of Credit will bear interest at 2.25% above the prime rate as published from time to time in The Wall Street Journal The Heritage Line of Credit and the Company’s obligations under the Heritage Loan Documents are secured by substantially all of the Company’s assets, including its intellectual property. The maturity date of the Heritage Line of Credit is March 29, 2017. At the time of maturity, all outstanding advances under the Heritage Line of Credit as well as any unpaid interest are due and payable. Prior to maturity of the Heritage Line of Credit, the Company may prepay amounts due under the Heritage Line of Credit without penalty, and subject to the terms of the Heritage Loan Documents, may re-borrow any such amounts. The Heritage Loan Documents contain customary representations and warranties and affirmative and negative covenants applicable to the Company. The Heritage Loan Documents also require the Company to achieve a minimum Adjusted EBITDA, as defined in the Heritage Loan Documents, measured on a quarterly basis. The Heritage Loan Documents also require that the number of the Company’s connections as of the end of each fiscal quarter shall not decrease by more than five percent as compared to the number of the Company’s connections as of the end of the immediately prior fiscal quarter. As of June 30, 2016, the Company was not in compliance with the minimum Adjusted EBITDA provision of the debt covenant. The Company received a waiver from its bank for the covenant default. The Heritage 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, Heritage Bank may declare all of the outstanding obligations of the Company under the Heritage Line of Credit and Heritage Loan Documents to be immediately due and payable, and exercise any other rights provided for under the Heritage Loan Documents, including foreclosing on the collateral securing the Heritage Loan Documents. In connection with the Heritage Loan Documents, the Company issued to Heritage Bank warrants to purchase up to 23,978 shares of common stock of the Company at an exercise price of $5.00 per share. The warrants are exercisable at any time through March 29, 2021 subject to earlier termination in the event of a business combination (as defined in the Heritage Loan Documents). The fair value of the warrants of $52 thousand was charged against the current obligation under the line of credit and amortized as interest expense on a straight-line basis over 12 months. The Black-Sholes method was used to calculate fair value of the warrants. The balance due on the Heritage line of credit was $7.2 million at June 30, 2016 and the balance due on the Avidbank line of credit was $4.0 million at June 30, 2015. As of June 30, 2016, $4.8 million was available under our line of credit. For year ended ($ in thousands) June 30, 2016 2015 Principal balance at period-end $ 7,217 $ 4,000 Unamortized discount (98 ) - Line of credit, net $ 7,119 $ 4,000 Maximum amount outstanding at any month end $ 7,217 $ 5,000 Average balance outstanding during the period $ 4,959 $ 4,100 Weighted-average interest rate: As of the period-end 5.8 % 5.3 % Paid during the period 5.5 % 5.3 % Interest expense on the Line of Credit was approximately $260 thousand, $211 thousand and $221 thousand during each of the years ended June 30, 2016, 2015 and 2014 respectively.

LONG-TERM DEBT

LONG-TERM DEBT	12 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
LONG-TERM DEBT	10. LONG-TERM DEBT ASSIGNMENT OF QUICKSTART LEASES In February and May 2015, the Company assigned its interest in certain finance receivables (various 60 month QuickStart leases) to third-party finance companies in exchange for cash and the assumption of financing obligations in the aggregate of $1.8 million and $304 thousand, respectively. These assignment transactions contain recourse provisions for the Company which requires the proceeds from the assignment to be treated as long-term debt. The financing obligations range in rate from 9.4% to 9.5%. CAPITAL LEASE OBLIGATIONS The Company periodically enters into capital lease obligations to finance certain office and network equipment for use in its daily operations. During the year periods ended June 30, 2016, 2015 and 2014, the Company entered into capital lease obligations of $444 thousand, $108 thousand and $325 thousand, respectively. The interest rates on these obligations ranged from approximately 5.6% to 9.0%. The lease terms range from 2 to 5 years. The value of the acquired equipment is included in property and equipment and depreciated over the applicable estimated useful lives accordingly. The balance of long-term debt as of June 30, 2016 and June 30, 2015 are shown in the table below. June 30, June 30, ($ in thousands) 2016 2015 Assignment of QuickStart Leases $ 1,600 $ 1,994 Capital lease obligations 605 338 $ 2,205 $ 2,332 Less current portion 629 478 $ 1,576 $ 1,854 The maturities of long-term debt for each of the fiscal years following June 30, 2016 are as follows: ($ in thousands) 2017 $ 629 2018 625 2019 588 2020 358 2021 5 $ 2,205

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	12 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	11. FAIR VALUE OF FINANCIAL INSTRUMENTS In accordance with the fair value hierarchy described in Note 2, the following table shows the fair value of the Company’s financial instruments that are required to be measured at fair value as of June 30, 2016 and 2015: ($ in thousands) June 30, 2016 Level 1 Level 2 Level 3 Total Common stock warrant liability, 2.2 million warrants exercisable at $2.6058 from September 17, 2011 through September 17, 2016 $ - $ - $ 3,739 $ 3,739 June 30, 2015 Level 1 Level 2 Level 3 Total Common stock warrant liability, 3.9 million warrants exercisable at $2.6058 from September 17, 2011 through September 17, 2016 $ - $ - $ 978 $ 978 As of June 30, 2016 and June 30, 2015, the Company held no Level 1 or Level 2 financial instruments. As of June 30, 2016 and 2015 fair values of the Company’s Level 3 financial instrument totaled $3,739 million and $978 thousand for 2.2 million and 3.9 million warrants, respectively. The level 3 financial instrument consists of common stock warrants issued by the company in March 2011, which include features requiring liability treatment of the warrants. The fair value of warrants issued March 2011 to purchase shares of the Company's common stock is based on valuations performed by an independent third party valuation firm. The fair value was determined using proprietary valuation models using the quality of the underlying securities of the warrants, restrictions on the warrants and security underlying the warrants, time restrictions and precedent sale transactions completed on the secondary market or in other private transactions. There were no transfer of assets or liabilities between level 1, level 2, or level 3 during the years ended June 30, 2016 and 2015. For Year Ended ($ in thousands) June 30, 2016 2015 Beginning balance $ (978 ) $ (585 ) Increase due to change in fair value of warrant liabilities (5,674 ) (393 ) Reduction due to warrant exercises 2,913 - Ending balance $ (3,739 ) $ (978 )

WARRANTS

WARRANTS	12 Months Ended
	Jun. 30, 2016
Warrants [Abstract]
WARRANTS	12. WARRANTS All warrants outstanding as of June 30, 2016 were exercisable. The following table shows exercise prices and expiration dates for warrants outstanding as of June 30, 2016: Exercise Warrants Price Expiration Outstanding Per Share Date 2,376,675 $ 2.61 September 18, 2016 45,000 $ 2.10 December 31, 2017 23,978 $ 5.00 March 29, 2021 2,445,653 Warrant activity for the years ended June 30, 2016, 2015, and 2014 was as follows: Warrants Outstanding at June 30, 2013 7,361,708 Issued - Exercised (2,090,226 ) Expired (962,482 ) Outstanding at June 30, 2014 4,309,000 Issued - Exercised - Expired - Outstanding at June 30, 2015 4,309,000 Issued 23,978 Exercised (1,887,325 ) Expired - Outstanding at June 30, 2016 2,445,653 On May 12, 2010, in conjunction with a public offering, the Company issued warrants to purchase 2.8 million shares of Common Stock, exercisable at $1.13 per share at any time prior to December 31, 2013. During the year ended June 30, 2014, 2.1 million of these warrants were exercised at $1.13 per share for cash proceeds of $2.4 million. Warrants to purchase 59 thousand shares of Common Stock expired unexercised on December 31, 2013. In conjunction with this public offering, the Company also issued to the placement agent warrants to purchase 165,207 and 15,717 shares of Common Stock, exercisable at $1.13 per share at any time prior to May 12, and July 7, 2013, respectively. During the year ended June 30, 2013 the placement agent elected cashless exercises of 36,186 warrants resulting in the issuance of 17,094 shares of Common Stock and exercised warrants to purchase 13,216 shares of Common Stock at $1.13 per share for cash proceeds of $14,934. Warrants to purchase 1,258 shares of Common Stock expired unexercised in May 2013. On March 17, 2011, in conjunction with a private placement offering the Company issued warrants to purchase up to 4.3 million shares of Common Stock, exercisable at $2.6058 per share. The 4.3 million warrants are exercisable from September 18, 2011 through September 17, 2016. During the year ended June 30, 2016, approximately 1.9 million warrants were exercised under this offering for cash proceeds of approximately $4.92 million. The balance of exercisable warrants as of June 30, 2016 is 2.4 million. 3.9 million of the warrants issued under this private placement offering contain a provision that if a Fundamental Transaction occurs, notably a change in control, the warrant holder may require the Company to pay the Black-Scholes calculated value of the then unexercised warrant to the warrant holder in cash. As such the Company has recorded a liability of $3.7 million and $978 thousand at June 30, 2016 and 2015, respectively, for the estimated fair value of the warrants in its Consolidated Balance Sheet (see Note 11-Fair Value of Financial Instruments). Period to period changes in the fair value of these warrants are reflected through income. In conjunction with the Loan and Security agreement (Note 9 – Line of Credit) and as a condition of the Bank entering into the First Amendment, the Company issued to the Bank warrants to purchase up to 45 thousand shares of Common Stock of the Company. The warrants are exercisable at any time prior to December 31, 2017 at an exercise price of $2.10 per share. Upon issuance, the fair value of the warrants was $55 thousand using a Black Scholes model, which was recorded as prepaid interest and included in other assets on the Consolidated Balance Sheet, and was amortized as non-cash interest expense over the remaining term of the Line of Credit as amended in January 2013. Non-cash interest of $2 thousand was recognized for the year ended June 30, 2014 relating to these warrants. As of June 30, 2016 none of these warrants have been exercised. On March 29, 2016, the Company entered into a Loan and Security Agreement with a secondary bank (Note 9 – Line of Credit), providing a secured asset-based revolving line of credit in an amount of up to $12 million. In conjunction with the Loan and Security Agreement the company issued to the bank warrants to purchase up to 24 thousand shares of Common Stock of the Company. The warrants are exercisable at any time prior to March 29, 2021 at an exercise price of $5.00 per share. At the time of issuance the fair value of the warrants was estimated at $52 thousand using a Black Scholes model. This was recorded as a contra -debt item and is included in the line of credit on the Consolidated Balance Sheet, and is being amortized as a non-cash interest expense over the remaining term of the Line of Credit. Non-cash interest expense of $13 thousand has been recognized for the year ending June 30, 2016 related to this warrant.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	13. 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 benefits of these assets to determine whether it is more likely than not that such benefit will be realized. In periods prior to the year ended June 30, 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 had achieved along with the belief that such performance will continue into future years, the Company determined during the year ended June 30, 2014 that it was more likely than not that a substantial portion of its deferred tax assets would be realized with approximately $64 million of its operating loss carryforwards being utilized to offset corresponding future years’ taxable income resulting in a reduction in its valuation allowances recorded in prior years. In addition to considering recent periods’ performance, the evaluation of the amount of deferred tax assets expected to be realized involves forecasting the amount of taxable income that will be generated in future years. The number of connections added in a service year is a key metric which, in the Company’s recurring revenue service model, becomes an important ingredient in driving future growth and earnings. The Company has forecasted future results using estimates that management believes to be achievable. With respect to its forecasts, the Company also has taken into account several industry analysts who have projected that demand for technology and services similar to the Company’s will continue to grow in the markets the Company serves. If in future periods the Company demonstrates its ability to grow taxable income in excess of the forecasts it has used, it will re-evaluate the need to keep some, or all, of the remaining valuation allowances of approximately $23 million on its deferred tax assets. The benefit (provision) for income taxes for the years ended June 30, 2016, 2015 and 2014 is comprised of the following: ($ in thousands) 2016 2015 2014 Current: Federal $ (7 ) $ (58 ) $ (21 ) State (38 ) (6 ) - (45 ) (64 ) (21 ) Deferred: Federal 407 365 20,970 State 253 (590 ) 6,306 660 (225 ) 27,276 $ 615 $ (289 ) $ 27,255 The provision for income taxes for the year ended June 30, 2015 includes $396 thousand for the state and federal income tax effects of a decrease in the applicable state tax rate used to tax effect deferred tax assets caused by a state income tax law change. A reconciliation of the benefit (provision) for income taxes for the years ended June 30, 2016, 2015 and 2014 to the indicated benefit (provision) based on income (loss) before benefit (provision) for income taxes at the federal statutory rate of 34% is as follows: ($ in thousands) 2016 2015 2014 Indicated benefit (provision) at federal statutory rate of 34% $ 2,523 $ 272 $ (94 ) Effects of permanent differences (2,040 )(A) (215 ) (8 ) State income taxes, net of federal benefit 199 (410 ) (18 ) Income tax credits 70 40 - Changes related to prior years - 187 - Changes in valuation allowances (137 ) (163 ) 27,375 $ 615 $ (289 ) $ 27,255 (A) Increase in the effects of permanent differences due to the tax effect of the change in fair value of warrant liabilities in 2016 At June 30, 2016 the Company had federal operating loss carryforwards of approximately $162 million to offset future taxable income expiring through approximately 2036. The timing and extent to which the Company can utilize operating loss carryforwards in any year may be limited by provisions of the Internal Revenue Code regarding changes in ownership of corporations (i.e. IRS Code Section 382). The changes in ownership limitations under IRS Code Section 382 have had the effect of limiting the maximum amount of operating loss carryforwards as of June 30, 2016 available for use to offset future years’ taxable income to approximately $124 million. Those operating loss carryforwards start to expire June 30, 2022. The net deferred tax assets arose primarily from net operating loss carryforwards, as well as the use of different accounting methods for financial statement and income tax reporting purposes as follows: June 30, ($ in thousands) 2016 2015 Deferred tax assets: Net operating loss carryforwards $ 46,691 $ 46,919 Asset reserves 1,713 792 Deferred research and development costs 1,356 1,009 Intangibles 539 606 Deferred gain on assets under sale-leaseback transaction 331 632 Stock-based compensation 377 224 Other 379 437 51,386 50,619 Deferred tax liabilities: Fixed assets (528 ) (492 ) Intangibles and goodwill - (84 ) Deferred tax assets, net 50,858 50,043 Valuation allowance (23,134 ) (22,997 ) Deferred tax assets (liabilties), net of allowance 27,724 27,046 Less current portion 2,271 1,258 Deferred tax assets (liabilties), non-current $ 25,453 $ 25,788

STOCK BASED COMPENSATION PLANS

STOCK BASED COMPENSATION PLANS	12 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK BASED COMPENSATION PLANS	14. STOCK BASED COMPENSATION PLANS The Company has three active stock based compensation plans at June 30, 2016 as shown in the table below: Date Approved Name of Plan Type of Plan Authorized June 2013 2013 Stock Incentive Plan Stock 500,000 June 2014 2014 Stock Option Incentive Plan Stock Options 750,000 June 2015 2015 Equity Incentive Plan Stock & Stock Options 1,250,000 2,500,000 As of June 30, 2016, the Company had reserved shares of Common Stock for future issuance for the following: Exercise of Common Stock Warrants 2,445,653 Conversions of Preferred Stock and cumulative Preferred Stock dividends 99,999 Issuance under 2013 Stock Incentive Plan 162,330 Issuance under 2014 Stock Option Incentive Plan 737,215 Issuance under 2015 Stock Incentive Plan 1,250,000 Issuance to former Chief Executive Officer upon the occurrence of a USA Transaction 140,000 Total shares reserved for future issuance 4,835,197 STOCK OPTIONS The Company estimates the grant date fair value of the stock options it grants using a Black-Scholes valuation model. The Company’s assumption for expected volatility is based on its historical volatility data related to market trading of its own common stock. The Company bases its assumptions for expected life of the new stock option grants on the life of the option granted, and if relevant, its analysis of the historical exercise patterns of its stock options. The dividend yield assumption is based on dividends expected to be paid over the expected life of the stock option. The risk-free interest rate assumption is determined by using the U.S. Treasury rates of the same period as the expected option term of each stock option. Year Ended Year ended Year ended June 30, 2016 June 30, 2015 June 30, 2014 Expected volatility 59-66% 78-79% 79% Expected life 4.5 years 7 years 7 years Expected dividends 0.00% 0.00% 0.00% Risk-free interest rate 1.46-1.49% 1.59-2.04% 2.22% The 2014 Stock Option Incentive Plan was approved in June 2014 therefore there was no stock based compensation expense related to stock options for the years ended June 30, 2014. Stock based compensation related to stock options for the years ended June 30, 2016 and June 30, 2015 was $338 and $370 thousand respectively. Unrecognized compensation related to stock option grants as of June 30, 2016 and June 30, 2015 was $167 thousand and $297 thousand respectively. The following table provides information about outstanding options: For the Twelve Months Ended June 30, 2016 2015 2014 Shares Weighted Shares Weighted Shares Weighted Outstanding options, beginning of period 538,888 $ 1.32 120,000 $ 1.49 - - Granted 199,586 $ 1.63 438,888 $ 1.30 120,000 $ 1.49 Forfeited (95,000 ) $ 1.80 (20,000 ) $ 1.49 - - Excercised (33,333 ) $ 1.27 Outstanding options, end of period 610,141 $ 1.35 538,888 $ 1.33 120,000 $ 1.49 The following table provides information related to options as of June 30, 2016: Options Outstanding Options Exercisable Range of Exercise Prices Options Outstanding Remaining Contractual Life Shares Exercisable Remaining Contractual Life Weighted Average Exercise Price $1.62 to $1.68 75,000 5.51 25,002 5.51 1.65 $1.80 295,555 5.16 195,555 5.16 1.8 $2.05 100,000 4.97 66,670 4.97 2.05 $2.09 10,000 5.58 3,333 5.58 2.09 $2.75 25,000 5.77 8,333 5.77 2.75 $2.94 75,000 6.53 - - - $3.38 29,586 6.06 - - - 610,141 5.42 298,893 5.17 1.87 The following table provides information about unvested options: For the Twelve Months Ended June 30, 2016 2015 2014 Shares Weighted Shares Weighted Shares Weighted Unvested options, beginning of period 505,553 $ 1.32 120,000 $ 1.49 - - Granted 199,586 $ 1.63 438,888 $ 1.30 120,000 $ 1.49 Vested (298,891 ) $ 1.31 (33,335 ) $ 1.49 - - Forfeited (95,000 ) $ 1.80 (20,000 ) $ 1.49 - - Unvested options, end of period 311,248 $ 1.39 505,553 $ 1.32 120,000 $ 1.49 The following table provides information about options outstanding and exercisable options: As of June 30, 2016 2015 2014 Options Exercisable Options Exercisable Options Exercisable Number 610,141 298,893 538,888 33,335 120,000 - Weighted average exercise price $ 2.07 $ 1.87 $ 1.86 $ 2.05 $ 2.05 - Aggregate intrinsic value $ 1,341,828 $ 717,343 $ 451,177 $ 21,668 $ 7,200 - Weighted average contractual term $ 5.42 5.17 6.21 5.97 6.97 - Share price as of June 30 $ 4.27 $ 4.27 $ 2.70 $ 2.70 $ 2.11 $ 2.11 STOCK GRANTS A summary of the status of the Company’s nonvested common shares as of June 30, 2016, 2015, and 2014, and changes during the years then ended is presented below: Weighted-Average Grant-Date Shares Fair Value Nonvested at June 30, 2013 97,146 $ 1.52 Granted 10,000 2.17 Vested (55,001 ) 1.62 Forfeited, Director changes (3,334 ) 0.94 Forfeited, Employee shares not earned (5,000 ) 1.52 Nonvested at June 30, 2014 43,811 $ 1.59 Granted 155,927 2.00 Vested (181,134 ) 1.89 Nonvested at June 30, 2015 18,604 $ 1.88 Granted 131,558 3.04 Vested (21,664 ) 2.70 Nonvested at June 30, 2016 128,498 $ 2.97

PREFERRED STOCK

PREFERRED STOCK	12 Months Ended
	Jun. 30, 2016
Preferred Stock [Abstract]
PREFERRED STOCK	15. PREFERRED STOCK The authorized Preferred Stock may be issued from time to time in one or more series, each series with such rights, preferences or restrictions as determined by the Board of Directors. As of June 30, 2016 each share of Series A Preferred Stock is convertible into 0.194 of a share of Common Stock and each share of Series A Preferred Stock is entitled to 0.194 of a vote on all matters on which the holders of Common Stock are entitled to vote. Series A Preferred Stock provides for an annual cumulative dividend of $1.50 per share, payable when, and if declared by the Board of Directors, to the shareholders of record in equal parts on February 1 and August 1 of each year. Any and all accumulated and unpaid cash dividends on the Series A Preferred Stock must be declared and paid prior to the declaration and payment of any dividends on the Common Stock. The Series A Preferred Stock may be called for redemption at the option of the Board of Directors for a price of $11.00 per share plus payment of all accrued and unpaid dividends. No such redemption has occurred as of June 30, 2016. In the event of any liquidation as defined in the Company’s Articles of Incorporation, the holders of shares of Series A Preferred Stock issued shall be entitled to receive $10.00 for each outstanding share plus all cumulative unpaid dividends. If funds are insufficient for this distribution, the assets available will be distributed ratably among the preferred shareholders. The Series A Preferred Stock liquidation preference as of June 30, 2016 and 2015 is as follows: ($ in thousands) June 30, June 30, 2016 2015 For Shares outstanding at $10.00 per share $ 4,451 $ 4,451 Cumulative unpaid dividends 13,657 12,989 $ 18,108 $ 17,440 Cumulative unpaid dividends are convertible into common shares at $1,000 per common share at the option of the shareholder. During the years ended June 30, 2016, 2015 and 2014, no shares of Preferred Stock nor cumulative preferred dividends were converted into shares of common stock.

RETIREMENT PLAN

RETIREMENT PLAN	12 Months Ended
	Jun. 30, 2016
Compensation and Retirement Disclosure [Abstract]
RETIREMENT PLAN	16. RETIREMENT PLAN The Company’s 401(k) Plan (the “Retirement Plan”) allows employees who have completed six months of service to make voluntary contributions up to a maximum of 100% of their annual compensation, as defined in the Retirement Plan. The Company may, in its discretion, make a matching contribution, a profit sharing contribution, a qualified non-elective contribution, and/or a safe harbor 401(k) contribution to the Retirement Plan. The Company must make an annual election, at the beginning of the plan year, as to whether it will make a safe harbor contribution to the plan. In fiscal years 2016, 2015 and 2014, the Company elected and made a safe harbor matching contributions of 100% of the participant’s first 3% and 50% of the next 2% of compensation deferred into the Retirement Plan. The Company’s safe harbor contributions for the years ended June 30, 2016, 2015 and 2014 approximated $189 thousand, $192 thousand and $168 thousand, respectively.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	17. RELATED PARTY TRANSACTIONS There were no related party transactions during the years ended June 30, 2016, 2015 and 2014.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	18. COMMITMENTS AND CONTINGENCIES SALE AND LEASEBACK TRANSACTIONS In June 2014, the Company and a third party finance company, entered into six Sale Leaseback Agreements (the “Sale Leaseback Agreements” or a “Sale Leaseback Agreement”) pursuant to which a third-party finance company purchased ePort equipment owned by the Company and used by the Company in its JumpStart Program. As of June 30, 2014, a third-party finance company completed the purchase from the Company, the ePort equipment under the first two of the Sale Leaseback Agreements. In the quarter ended September 2014, a third-party finance company completed the purchase from the Company of the ePort equipment described in the last four of the Sale Leaseback Agreements. Upon the completion of the sale under these agreements, the Company computed a gain on the sale of its ePort equipment, which is deferred and will be amortized in proportion to the related gross rental charged to expense over the lease terms in accordance with the FASB topic ASC 840-40, “Sale Leaseback Transactions”. The computed gain on the sale will be recognized ratably over the 36-month term and charged as a reduction to the Company’s JumpStart rent expense included in costs of services in the Company’s Consolidated Statement of Operations. The Company is accounting for the Sale Leaseback as an operating lease and is obligated to pay to Varilease a base monthly rental for this equipment during the 36-month lease term. The future lease payment obligations under these agreements are included in the table at the bottom of this note. Upon the completion of the sales, the Company computed gains on the sale of its ePort equipment as follows: ($ in thousands) Year ended June 30, 2015 Rental equipment sold, cost $ 3,873 Rental equipment sold, accumulated depreciation upon sale (331 ) Rental equipment sold, net book value 3,542 Proceeds from sale 4,994 Gain on sale of rental equipment $ 1,452 In accordance with the FASB topic ASC 840-40, “Sale Leaseback Transactions”, any gain shall be deferred and shall be amortized in proportion to the related gross rental charged to expense over the lease term. The computed gain on the sale will be recognized ratably over the 36 month term and charged as a reduction to the Company’s JumpStart rent expense included in costs of services in the Company’s Consolidated Statement of Operations. For the years ended June 30, 2016 and 2015 the Company recognized gains as follows: ($ in thousands) Year ended June 30, 2016 2015 Beginning balance $ 1,760 $ 1,142 Gain on sale of rental equipment - 1,452 Recognition of deferred gain (860 ) (834 ) Ending balance 900 1,760 Less current portion 860 860 Non-current portion of deferred gain $ 40 $ 900 OTHER LEASES Other lease commitments include leases for its operations from various facilities. The Company leases space located in Malvern, Pennsylvania for its principal executive office and used for general administrative functions, sales activities, product development, and customer support. In April 2016, the Company entered into a Third Amendment to Office Space Lease (the “Third Amendment”) which amended certain terms of its existing lease (the “Lease”) for its Malvern, Pennsylvania executive offices consisting of approximately 17,249 square feet located on the first floor of the building (the “Current Premises”). The Third Amendment provides that the Company will relocate from the Current Premises to new offices located on the third floor of the building (the “New Offices”) consisting of approximately 17,689 square feet. Substantially all of the improvements to the New Offices will be constructed by the landlord at the landlord’s cost and expense. When the New Offices are substantially completed, the Company would relocate from the Current Premises to the New Premises (the “New Premises Commencement Date”). The Third Amendment provides that the term of the Lease is extended from the prior expiration date of April 30, 2016 until seven years following July 1, 2016 (the” New Premises Commencement Date”). The Company’s monthly base rent for the Premises will increase from approximately $32 thousand to $36 thousand on the New Premises Commencement Date, and will increase each year thereafter up to a maximum monthly base rent of approximately $41 thousand. The Third Amendment also grants to the Company the option to extend the term of the Lease for an additional five year period with a minimum of one year advance notice prior to the expiration of the initial term, and provides certain rights of first offer on additional space located on the third floor of the building. The straight-line rent expense for this office is approximately $38 thousand per month for the duration of the lease. The Company leases space in Malvern, Pennsylvania for its product warehousing and shipping support. In March 2016, the Company extended its lease from March 1, 2016 through February 29, 2019. The lease includes monthly rental payments of $5 thousand. Beginning in March 2016 the straight-line rent expense for this operations site is approximately $5 thousand per month for the duration of the lease period. The Company leases space in Portland, Oregon related to its VendScreen acquisition. The current lease consists of approximately 9,319 square feet. The lease includes monthly rental payments of $20 thousand and will terminate on September 30, 2016. The Company is currently negotiating a new lease for space related to this facility. Rent expense under operating leases was approximately $479 thousand, $354 thousand and $372 thousand during the years ended June 30, 2016, 2015, and 2014, respectively. SUMMARY OF LEASE OBLIGATIONS Future minimum lease payments for fiscal years subsequent to June 30, 2016 under non-cancellable operating leases and capital leases are as follows: Operating Leases Other Operating Total Operating Capital ($ in thousands) from Sale Leaseback Leases Leases Leases 2017 $ 2,641 $ 552 $ 3,193 $ 299 2018 138 503 641 236 2019 - 498 498 142 2020 - 459 459 - 2021 - 468 468 - Thereafter - 963 963 - Total minimum lease payments $ 2,779 $ 3,443 $ 6,222 $ 677 Less Amount Representing interest 72 Present Value of net minimum lease payments 605 Less Current obligations under capital leases 255 Obligations under capital leases, less current portion $ 350 LITIGATION As previously reported, on October 1, 2015, a purported class action was filed in the United States District Court for the Eastern District of Pennsylvania against the Company and its executive officers alleging violations under the Securities Exchange Act of 1934. On December 15, 2015, the court appointed a lead plaintiff, and on January 18, 2016, the plaintiff filed an amended complaint that set forth the same causes of action and requested substantially the same relief as the original complaint. On February 1, 2016, the Company filed a motion to dismiss the amended complaint. On April 11, 2016, the Court held oral argument on the Company’s motion, and on April 14, 2016, the Court issued an order granting the Company’s motion to dismiss the amended complaint without leave to amend. On May 13, 2016, the plaintiff appealed the Court’s order to the United States Court of Appeals for the Third Circuit. On August 16, 2016, the plaintiff filed a Motion For Relief From Final Judgment with the District Court seeking an order modifying the District Court’s April 14, 2016 order dismissing the complaint, and permitting the plaintiff to now file an amended complaint due to alleged newly discovered evidence. By Order dated September 6, 2016, the District Court found that the Motion raised a substantial issue, and directed the plaintiff to notify the Court of Appeals thereof. On September 7, 2016, the plaintiff so notified the Court of Appeals. It is anticipated that the Court of Appeals will remand the case to the District Court pending the District Court’s ruling on the Motion. The Company’s response to the Motion is due by no later than September 15, 2016. The Company believes that the Motion has no merit and intends to vigorously oppose the Motion. By letter dated December 7, 2015, a purported shareholder of the Company demanded that the Board of Directors investigate, remedy and commence proceedings against certain of the Company’s current and former officers and directors for breach of fiduciary duties in connection with the material weakness in its internal controls over financial reporting which were more fully described in the Company’s Form 10-K for the fiscal year ended June 30, 2015 (the “2015 Form 10-K”). In response to the demand letter, the Board of Directors formed a special litigation committee (“the SLC”) consisting of Joel Brooks and William Reilly, Jr., in order to investigate and evaluate the demand letter. On June 1, 2016, and before the SLC had concluded its investigation, the purported shareholder filed a purported derivative action on behalf of the Company in the Chester County, Pennsylvania, Court of Common Pleas, against certain current and former officers and Directors. The complaint alleges that the defendants breached their fiduciary duties relating to the material weakness in internal controls reported in the 2015 Form 10-K. The complaint seeks unspecified damages against the defendants and certain equitable relief. On July 15, 2016 the SLC issued its the “SLC Report”) which, among other things, concluded that the none of the current or former officers or Directors had breached their fiduciary duties, that it was not in the best interests of the Company to pursue the pending shareholder derivative action, and that the Company request the Court to dismiss the action in its entirety. On August 1, 2016, the Board of Directors of the Company adopted all of the conclusions and recommendations set forth in the SLC Report. On August 16, 2016, the Company filed with the Court a Motion to Dismiss the shareholder derivative complaint. As of the date hereof, the court has not ruled on the Motion to Dismiss. The ultimate outcome of these matters cannot be determined at this time. The Company believes that it has meritorious defenses to such claims and is defending them vigorously, and has not recorded a provision for the ultimate outcome of these matters in its financial statements.

REVISIONS OF PREVIOUSLY REPORTE

REVISIONS OF PREVIOUSLY REPORTED CONSOLIDATED FINANCIAL STATEMENTS	12 Months Ended
	Jun. 30, 2016
Change in Accounting Estimate [Abstract]
REVISIONS OF PREVIOUSLY REPORTED CONSOLIDATED FINANCIAL STATEMENTS	19. REVISIONS OF PREVIOUSLY REPORTED CONSOLIDATED FINANCIAL STATEMENTS The consolidated financial statements included in this Form 10-K reflect additional shares of common stock and preferred stock that had been issued and outstanding in prior periods but were not reflected as such in previous consolidated financial statements. The additional shares primarily consisted of unvested shares of common stock awarded to officers and directors pursuant to the Company’s equity compensation plans. The Consolidated Statement of Shareholders’ Equity has been adjusted to reflect these additional common and preferred shares as of June 30, 2013. The June 30, 2015 Consolidated Balance Sheet has also been adjusted to reflect these additional shares; and the liquidation preference of preferred stock as of such date has been increased by $85 thousand. The cumulative preferred dividends and the basic and diluted weighted average number of common shares outstanding in the Consolidated Statements of Operations for the fiscal years ended June 30, 2015 and 2014 have also been adjusted. The foregoing adjustments in basic and diluted weighted common shares outstanding did not affect the previously reported net income (loss) per common share-basic or diluted for the fiscal year ended June 30, 2015. For the fiscal year ended June 30, 2014 net income per common share-basic and diluted decreased from $.78 to $.77. Revised Consolidated Statements of Operations ($ in thousands) Year ended June 30, 2014 As previously Adjustment As Revised Cumulative preferred dividends $ (664 ) $ (4 ) $ (668 ) Net income (loss) applicable to common shares $ 26,867 $ (4 ) $ 26,863 Net earnings (loss) per common share basic $ 0.78 $ (0.01 ) $ 0.77 Net earnings (loss) per common share diluted $ 0.78 $ (0.01 ) $ 0.77 Basic weighted average number of common shares outstanding 34,613,497 54,272 34,667,769 Diluted weighted average number of common shares outstanding 34,613,497 396,062 35,009,559 ($ in thousands) Year ended June 30, 2015 As previously Adjustment As Revised Cumulative preferred dividends $ (664 ) $ (4 ) $ (668 ) Net income (loss) applicable to common shares $ (1,753 ) $ (4 ) $ (1,757 ) Basic and diluted weighted average number of common shares outstanding 35,663,386 55,825 35,719,211 Revised Consolidated Statements of Equity ($ in thousands) Year ended June 30, 2014 Common Shares As previously Adjustment As Revised Stock based compensation 2010 Stock Incentive Plan 6,668 (3,334 ) 3,334 2011 Stock Incentive Plan 51,667 (51,667 ) - 2012 Stock Incentive Plan - 158,505 158,505 2013 Stock Incentive Plan 131,203 (75,393 ) 55,810 Retirement of common stock (49,311 ) (3,334 ) (52,645 ) Balance June 30, 2014 35,514,685 87,438 35,602,123 Year ended June 30, 2015 Common Shares As previously Adjustment As Revised Stock based compensation 2011 Stock Incentive Plan 10,002 (10,002 ) - 2012 Stock Incentive Plan 88,991 (55,293 ) 33,698 2013 Stock Incentive Plan 165,463 (5,722 ) 159,741 2014 Stock Incentive Plan - - - Retirement of common stock (31,899 ) - (31,899 ) Balance June 30, 2015 35,747,242 16,421 35,763,663

UNAUDITED QUARTERLY DATA

UNAUDITED QUARTERLY DATA	12 Months Ended
	Jun. 30, 2016
Quarterly Financial Data [Abstract]
UNAUDITED QUARTERLY DATA	20. UNAUDITED QUARTERLY DATA UNAUDITED YEAR ENDED JUNE 30, 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Year Revenues $ 16,600 $ 18,503 $ 20,361 $ 21,944 $ 77,408 Gross profit $ 5,047 $ 5,483 $ 5,672 $ 5,783 $ 21,985 Operating income (loss) $ 112 $ 594 $ (595 ) $ (1,578 ) $ (1,467 ) Net income (loss) $ 360 $ (874 ) $ (5,420 ) $ (872 ) $ (6,806 ) Cumulative preferred dividends $ (334 ) $ - $ (334 ) $ - $ (668 ) Net income (loss) applicable to common shares $ 26 $ (874 ) $ (5,754 ) $ (872 ) $ (7,474 ) Net earnings (loss) per common share: Basic $ 0.00 $ (0.02 ) $ (0.16 ) $ (0.02 ) $ (0.21 ) Diluted $ 0.00 $ (0.02 ) $ (0.16 ) $ (0.02 ) $ (0.21 ) Weighted average number of common shares outstanding: Basic 35,848,395 35,909,933 36,161,626 37,325,681 36,309,047 Diluted 36,487,879 35,909,933 36,161,626 37,325,681 36,309,047 UNAUDITED YEAR ENDED JUNE 30, 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Year Revenues $ 12,253 $ 12,821 $ 15,358 $ 17,645 $ 58,077 Gross profit $ 3,135 $ 3,733 $ 5,146 $ 4,809 $ 16,823 Operating income (loss) $ (667 ) $ 51 $ 731 $ (355 ) $ (240 ) Net income (loss) $ (61 ) $ (261 ) $ (567 ) $ (200 ) $ (1,089 ) Cumulative preferred dividends $ (334 ) $ - $ (334 ) $ - $ (668 ) Net income (loss) applicable to common shares $ (395 ) $ (261 ) $ (901 ) $ (200 ) $ (1,757 ) Net earnings (loss) per common share Basic $ (0.01 ) $ (0.01 ) $ (0.03 ) $ (0.01 ) $ (0.05 ) Diluted $ (0.01 ) $ (0.01 ) $ (0.03 ) $ (0.01 ) $ (0.05 ) Weighted average number of common shares outstanding: Basic 35,651,732 35,716,848 35,747,979 35,761,370 35,719,211 Diluted 35,651,732 35,716,848 35,747,979 36,206,934 35,719,211

VALUATION AND QUALIFYING ACCOUN

VALUATION AND QUALIFYING ACCOUNTS	12 Months Ended
	Jun. 30, 2016
Valuation and Qualifying Accounts [Abstract]
VALUATION AND QUALIFYING ACCOUNTS	SCHEDULE II USA TECHNOLOGIES, INC. VALUATION AND QUALIFYING ACCOUNTS YEARS ENDED JUNE 30, 2016, 2015, AND 2014 ($ in thousands) Deductions uncollectible Balance at Additions receivables Balance beginning charged to written off, net at end ACCOUNTS RECEIVABLE of period earnings of recoveries of period June 30, 2016 $ 1,309 $ 1,576 $ 71 $ 2,814 June 30, 2015 $ 63 $ 1,409 $ 163 $ 1,309 June 30, 2014 $ 18 $ 94 $ 49 $ 63 Balance at Additions Deductions, Balance beginning charged to Shrinkage and at end INVENTORY of period earnings obsolescence of period June 30, 2016 $ 944 $ 943 $ 590 $ 1,297 June 30, 2015 $ 765 $ 551 $ 372 $ 944 June 30, 2014 $ 727 $ 164 $ 126 $ 765

ACCOUNTING POLICIES (Policies)

ACCOUNTING POLICIES (Policies)	12 Months Ended
	Jun. 30, 2016
Business Description And Accounting Policies [Abstract]
CONSOLIDATION	CONSOLIDATION The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. 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	CASH The Company maintains its cash in bank deposit accounts, which may exceed federally insured limits at times.
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS	ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS Accounts receivable include amounts due to the Company for sales of equipment, other amounts due from customers, merchant service receivables, and unbilled amounts due from customers, net of the allowance for uncollectible accounts. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments, including from a shortfall in the customer transaction fund flow from which the Company would normally collect amounts due. The allowance is determined through an analysis of various factors including the aging of the accounts receivable, the strength of the relationship with the customer, the capacity of the customer transaction fund flow to satisfy the amount due from the customer, an assessment of collection costs and other factors. The allowance for doubtful accounts receivable is management’s best estimate as of the respective reporting date. The Company writes off accounts receivable against the allowance when management determines the balance is uncollectible and the Company ceases collection efforts. Management believes that the allowance recorded is adequate to provide for its estimated credit losses.
FINANCE RECEIVABLES	FINANCE RECEIVABLES The Company offers extended payment terms to certain customers for equipment sales under its Quick Start Program. In accordance with the Financial Accounting Standards Board Accounting Standards Codification® (“ASC”) Topic 840, “Leases”, agreements under the Quick Start Program qualify for sales-type lease accounting. Accordingly, the future minimum lease payments are classified as finance receivables in the Company’s consolidated balance sheets. Finance receivables or Quick Start leases are generally for a sixty 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, Net	INVENTORY, Net Inventory consists of finished goods and packaging materials. The Company’s inventory is stated at the lower of cost (average cost basis) or market.
PROPERTY AND EQUIPMENT, Net	PROPERTY AND EQUIPMENT, Net 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.
GOODWILL AND INTANGIBLE ASSETS	GOODWILL AND INTANGIBLE ASSETS The Company’s intangible assets include goodwill, trademarks, non-compete agreements, brand, developed technology and customer relationships. The Company’s trademarks with an indefinite economic life are not being amortized. The trademarks, not subject to amortization, are related to the EnergyMiser asset group and consist of four trademarks. The Company tests indefinite-life intangible assets for impairment using a two-step process. The first step screens for potential impairment, while the second step measures the amount of impairment. The Company uses a relief from royalty analysis to complete the first step in this process. Testing for impairment is to be done at least annually and at other times if events or circumstances arise that indicate that impairment may have occurred. The Company has selected April 1 as its annual test date for its indefinite-lived intangible assets. The Company concluded there was no impairment of trademarks during the fiscal years ended June 30, 2015 and 2014, respectively. During the fourth quarter of the fiscal year ended June 30, 2016, the fair value of the trademarks were determined to have inconsequential value based on the “relief from royalty” methodology. This assessment resulted in an impairment write-down during the fourth fiscal quarter of $432 thousand, which is included in “Impairment of intangible asset” in the Consolidated Statement of Operations for the fiscal year ended June 30, 2016. (See Note 7 Goodwill and Intangible Assets for details.) Goodwill represents the excess of cost over fair value of the net assets purchased in acquisitions. The Company accounts for goodwill in accordance with ASC 350, “Intangibles – Goodwill and Other”. Under ASC 350, goodwill is not amortized to earnings, but instead is subject to periodic testing for impairment. Testing for impairment is to be done at least annually and at other times if events or circumstances arise that indicate that impairment may have occurred. The Company has selected April 1 as its annual test date. The Company has concluded there has been no impairment of goodwill during the fiscal years ended June 30, 2016, 2015 and 2014, respectively.
LONG-LIVED ASSETS	LONG-LIVED ASSETS In accordance with ASC 360, “Impairment or Disposal of Long-Lived Assets”, the Company reviews its definite lived long-lived assets whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If the carrying amount of an asset or group of assets exceeds its net realizable value, the asset will be written down to its fair value. In the period when the plan of sale criteria of ASC 360 are met, definite lived long-lived assets are reported as held for sale, depreciation and amortization cease, and the assets are reported at the lower of carrying value or fair value less costs to sell. The Company has concluded that the carrying amount of definite lived long-lived assets is recoverable as of June 30, 2016 and 2015.
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 accounted for in accordance with ASC 820 “Fair Value Measurement.” Under ASC 820 the Company uses inputs from the three levels of the fair value hierarchy to measure its financial assets and liabilities. 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 accounts receivable, short-term 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 agreements and the long-term portion of its finance receivables approximate their carrying value as such instruments are at market rates currently available to the Company.
CONCENTRATION OF RISKS	CONCENTRATION OF RISK Financial instruments that subject the Company to a concentration of credit risk consist principally of cash and accounts and finance receivables. The Company maintains cash with various financial institutions where accounts may exceed federally insured limits at times. Approximately 18%, 35% and 22% of the Company’s trade accounts and finance receivables at June 30, 2016, 2015 and 2014, respectively, were concentrated with one customer. Concentration of revenues with customers subject the Company to operating risks. Approximately 16%, 21% and 26% of the Company’s license and transaction processing revenues for the years ended June 30, 2016, 2015 and 2014, respectively, were concentrated with one customer. Approximately 28% and 17% of the Company’s equipment sales revenue were concentrated with one customer for the years ended June 30, 2016 and 2015, respectively, with no concentrations for the year ended June 30, 2014. The Company’s customers are principally located in the United States.
REVENUE RECOGNITION	REVENUE RECOGNITION Revenue from the sale or QuickStart lease of equipment is recognized on the terms of free-on-board shipping point. Activation fee revenue, if applicable, is recognized when the Company’s cashless payment device is initially activated for use on the Company network. Transaction processing revenue is recognized upon the usage of the Company’s cashless payment and control network. License fees for access to the Company’s devices and network services are recognized on a monthly basis. In all cases, revenue is only recognized when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed and determinable, and collection of the resulting receivable is reasonably assured. The Company estimates an allowance for product returns at the date of sale and license and transaction fee refunds on a monthly basis. ePort hardware is available to customers under the QuickStart program pursuant to which the customer would enter into a five-year non-cancelable lease with either the Company or a third-party leasing company for the devices. The Company qualifies for sales type lease accounting. Accordingly, the company recognizes a portion of lease payments as interest income. At the end of the lease period, the customer would have the option to purchase the device at its residual value.
EQUIPMENT RENTAL	EQUIPMENT RENTAL The Company offers its customers a rental program for its ePort devices, the JumpStart program (“JumpStart”). JumpStart terms are typically 36 months and are cancellable with thirty to sixty days’ written notice. In accordance with ASC 840, “Leases”, the Company classifies the rental agreements as operating leases, with service fee revenue related to the leases included in license and transaction fees in the Consolidated Statements of Operations. Cost for the JumpStart revenues, which consists of depreciation expense on the JumpStart equipment, is included in cost of services in the Consolidated Statements of Operations. ePort equipment utilized by the JumpStart program is included in property and equipment, net on the Consolidated Balance Sheet.
WARRANTY COSTS	WARRANTY COSTS The Company generally warrants its products for one to three years. Warranty costs are estimated and recorded at the time of sale based on historical warranty experience, if available. These costs are reviewed and adjusted, if necessary, periodically throughout the year.
SHIPPING AND HANDLING	SHIPPING AND HANDLING Shipping and handling fees billed to our customers in connection with sales are recorded as revenue. The costs incurred for shipping and handling of our product are recorded as cost of equipment.
ADVERTISING	ADVERTISING Advertising costs are expensed as incurred. Advertising expense was $0.3 million, $0.2 million, and $0.2 million in the fiscal years ended June 30, 2016, 2015, and 2014, respectively.
RESEARCH AND DEVELOPMENT EXPENSES	RESEARCH AND DEVELOPMENT EXPENSES Research and development expenses are expensed as incurred. Research and development expenses, which are included in selling, general and administrative expenses in the Consolidated Statements of Operations, were approximately $1.4 million, $1.5 million and $1.0 million, for the years ended June 30, 2016, 2015, and 2014, respectively. Our research and development initiatives focus on adding features and functionality to our system solutions through the development and utilization of our processing and reporting network and new technology.
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 requisite service period of the award.
Litigation Costs	Litigation Costs From time to time, we are involved in litigation, claims, contingencies and other legal matters. We record a charge equal to at least the minimum estimated liability for a loss contingency when both of the following conditions are met: (i) information available prior to issuance of the financial statements indicates that it is probable that an asset had been impaired or a liability had been incurred at the date of the financial statement and (ii) the range of the loss can be reasonably estimated. We expense legal costs, including those legal costs expected to be incurred in connection with a loss contingency, as incurred.
INCOME TAXES	INCOME TAXES The Company follows the provisions of FASB ASC 740, Accounting for Uncertainty in Income Taxes, Income taxes are computed using the asset and liability method of accounting. Under the asset and liability method, a deferred tax asset or liability is recognized for estimated future tax effects attributable to temporary differences and carryforwards. The measurement of deferred income tax assets is adjusted by a valuation allowance, if necessary, to recognize future tax benefits only to the extent, based on available evidence, it is more likely than not such benefits will be realized. The Company recognizes interest and penalties, if any, related to uncertain tax positions in selling, general and administrative expenses. No interest or penalties related to uncertain tax positions were accrued or incurred during the years ended June 30, 2016, 2015, and 2014. The Company files income tax returns in the United States federal jurisdiction and various state jurisdictions. The tax years ended June 30, 2013 through June 30, 2016 remain open to examination by taxing jurisdictions to which the Company is subject. As of June 30, 2016, the Company did not have any income tax examinations in process.
EARNINGS (LOSS) PER COMMON SHARE	EARNINGS (LOSS) PER COMMON SHARE Basic earnings (loss) per share are calculated by dividing net income (loss) applicable to common shares by the weighted average common shares outstanding for the period. Diluted earnings (loss) per share are calculated by dividing net income (loss) applicable to common shares by the weighted average common shares outstanding for the period plus the dilutive effects of common stock equivalents unless the effects of such common stock equivalents are anti-dilutive. For the years ended June 30, 2016, 2015 and 2014 no effect for common stock equivalents was considered in the calculation of diluted earnings (loss) per share because their effect was anti-dilutive. The consolidated financial statements included in this Form 10-K reflect additional shares of common stock and preferred stock that had been issued and outstanding in prior periods but were not reflected as such in previous consolidated financial statements as explained in Note 19. The basic and diluted weighted average number of common shares outstanding for the years ended June 30, 2015 and 2014 have been adjusted to reflect the additional number of shares pertaining to each of those years. The foregoing adjustments in basic and diluted weighted common shares outstanding did not affect the previously reported net loss per common share-basic or diluted for the year ended June 30, 2015. The previously reported net income per common share-basic and diluted for the year ended June 30, 2014 was decreased from $.78 to $.77 as a result of the foregoing adjustments.
SOFTWARE DEVELOPMENT COSTS	SOFTWARE DEVELOPMENT COSTS Costs incurred during the preliminary project along with post-implementation stages of internal use computer software development and costs incurred to maintain existing product offerings are expensed as incurred. The capitalization and ongoing assessment of recoverability of development costs require considerable judgment by management with respect to certain external factors, including, but not limited to, technological and economic feasibility and estimated economic life. At June 30, 2016, the Company had $137 thousand in capitalized software development which is being amortized over a period of three years.
OTHER COMPREHENSIVE INCOME	OTHER COMPREHENSIVE INCOME ASC 220, “Comprehensive Income”, prescribes the reporting required for comprehensive income and items of other comprehensive income. Entities having no items of other comprehensive income are not required to report on comprehensive income. The Company has no items of other comprehensive income for its years ended June 30, 2016, 2015 or 2014.
RECENT ACCOUNTING PRONOUCEMENTS	RECENT ACCOUNTING PRONOUCEMENTS The Company is evaluating whether the effects of the following recent accounting pronouncements or any other recently issued, but not yet effective accounting standards, will have a material effect on the Company’s consolidated financial position, results of operations or cash flows. In May 2014, the Financial Accounting Standards Board issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU was amended by ASU No. 2015-14, issued in August 2015, which deferred the original effective date by one year. The new guidance provides a single model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. The new standard also requires expanded qualitative and quantitative disclosures about the nature, timing and uncertainty of revenue and cash flows rising from contracts with customers. The ASU is now effective for fiscal years, and interim reporting periods within those years, beginning with the year ending June 30, 2019. In June 2014, the Financial Accounting Standards Board issued ASU 2014-12 Compensation - Stock Compensation (Topic 718); Accounting for share-based payments when the terms of the award provide that a performance target could be achieved after the requisite service period. Under the new guidance an entity will not record compensation expense related to an award until it becomes probable that the performance target will be met. This pronouncement will be effective for the Company beginning with the year ending June 30, 2017. In April 2015, the Financial Accounting Standards Board issued ASU 2015-03 Interest - Imputation of Interest (Subtopic 835-30): Simplifying the presentation of debt issuance costs. This standard is part of FASB’s simplification initiative which has as its objective to identify, evaluate, and improve areas where cost and complexity can be reduced while maintaining or improving the usefulness of the information for users. The Company adopted this pronouncement for the year ended June 30, 2016. In July 2015, the Financial Accounting Standards Board issued ASU 2015-11 Inventory (Topic 330): Simplifying the measurement of inventory. This standard is part of FASB’s simplification initiative which has as its objective to identify, evaluate, and improve areas where cost and complexity can be reduced while maintaining or improving the usefulness of the information for users. This pronouncement will be effective for the Company beginning with the year ending June 30, 2018. In September 2015, the Financial Accounting Standards Board issued ASU 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments". ASU 2015-16 eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. ASU 2015-16 will be effective for the Company beginning with the quarter ending September 30, 2016. Since this standard is prospective, the impact of ASU 2015-16 on the Company's financial condition, results of operations and cash flows will depend upon the nature of any measurement period adjustments identified in future periods. In November 2015, the Financial Accounting Standards Board issued ASU 2015-17, "Balance Sheet Classification of Deferred Taxes" ("ASU 2015-17"), which will require entities to present all deferred tax liabilities and assets as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. The standard will be effective for the Company beginning with the quarter ending September 30, 2017. Early application is permitted. The standard can be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. In February 2016, the Financial Accounting Standards Board issued ASU 2016-02 “Leases” (Topic 842). Under the new guidance, those leases classified as operating leases under previous GAAP, will be recognized on our consolidated balance sheet as liabilities with corresponding right-of-use assets. This pronouncement will be effective for the Company beginning with the year ending June 30, 2018. In March 2016, the Financial Accounting Standards Board issued ASU 2016-09 Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The new guidance simplifies several aspects of accounting and presentation for share-bases compensation. This pronouncement will be effective for the Company beginning with the year ending June 30, 2018. In August 2016, the Financial Accounting Standards Board issued ASU 2016-15 Statement of Cash Flows Classification of Certain Cash Receipts and Cash Payments (Topic 230). This update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. This pronouncement will be effective for the Company beginning with the year ending June 30, 2018. There are three amendments to ASU 2014-09 issued in 2016. They are ASU 2016-08, issued in March 2016 Revenue from Contracts with Customers (Topic 606) Principal versus Agent Considerations which clarifies those relationships with the customer, ASU 2016-10, issued in April 2016 Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing, what is the entity’s obligations to its customer and what is the customer’s entitlement in the license agreements and ASU 2016-12, issued in April 2016 Revenue from Contracts with Customers (Topic 606), Narrow Scope Improvements and Practical Expedients, guidance on assessing collectability, presentation of sales taxes, noncash consideration, and completed contract modifications at transition. These amendments to ASU 2014-09 are now effective for fiscal years, and interim reporting periods within those years, beginning with the year ending June 30, 2019.
RECLASSIFICATION	RECLASSIFICATION As reported in the Company’s Form 10-Q for the quarter ended September 30, 2015, commencing with the September 30, 2015 financial statements, the Company changed the manner in which it presents certain uncollected customer accounts receivable and the related allowance in its consolidated balance sheets and the related statements of cash flows. These accounts receivable represent a large number of small balance amounts due from customers for processing and service fees which had not been billed to customers, and as to which, there had been no customer transaction proceeds from which the Company could collect the amounts due in accordance with its normal procedures. The previous accounting classification recorded these amounts as a reduction of its accounts payable in the consolidated balance sheets and the related statements of cash flows. The new accounting classification moves these amounts to accounts receivable and allowance for bad debt. ($ in thousands) June 30, 2015 Balances Consolidated Balance Sheet Line Items As previously Reclassification As reclassified Accounts Receivable, net of allowance for doubtful accounts: ·Reclassification of balances included in accounts payable to accounts receivable $ 2,114 ·Reclassification of the allowance for doubtful accounts in accounts payable (815 ) $ 4,672 $ 1,299 $ 5,971 Allowance for Doubtful Accounts: ·Reclassification of the allowance for doubtful accounts in accounts payable $ (494 ) $ (815 ) $ (1,309 ) Accounts Payable: ·Reclassification of balances included in accounts payable to accounts receivable $ 2,114 ·Reclassification of the allowance for doubtful accounts in accounts payable (815 ) $ 9,243 $ 1,299 $ 10,542 Accordingly, the respective balances for all prior periods presented in these financial statements were reclassified in order to be consistent with and comparable to the accounting classification of these items in our June 30, 2015 financial statements. The new accounting classification as well as the reclassification for prior periods had no effect on the consolidated statements of operations or the consolidated statements of shareholders’ equity. The details of the reclassification of the consolidated balance sheets were disclosed in the Company’s Form 10-Q for the quarter ended September 30, 2015. The consolidated statements of cash flows amounts are presented in the table below: ($ in thousands) For the fiscal year ended June 30, 2015 Consolidated Statement of Cash Flow Line Items As previously Reclassification As reclassified Accounts Receivable ·Reclassification of cash provided by and included in accounts payable to accounts receivable $ (2,517 ) $ (22 ) $ (2,539 ) Accounts Payable: ·Reclassification of cash used in and included in accounts payable to accounts receivable $ 919 $ 22 $ 941 ($ in thousands) For the fiscal year ended June 30, 2014 Consolidated Statement of Cash Flow Line Items As previously Reclassification As reclassified Accounts Receivable ·Reclassification of cash provided by and included in accounts payable to accounts receivable $ (157 ) $ (47 ) $ (204 ) Accounts Payable: ·Reclassification of cash used in and included in accounts payable to accounts receivable $ 413 $ 47 $ 460

ACCOUNTING POLICIES (Tables)

ACCOUNTING POLICIES (Tables)	12 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Schedule of reclassification accounts receivable allowance for doubtful accounts payable	($ in thousands) June 30, 2015 Balances Consolidated Balance Sheet Line Items As previously Reclassification As reclassified Accounts Receivable, net of allowance for doubtful accounts: ·Reclassification of balances included in accounts payable to accounts receivable $ 2,114 ·Reclassification of the allowance for doubtful accounts in accounts payable (815 ) $ 4,672 $ 1,299 $ 5,971 Allowance for Doubtful Accounts: ·Reclassification of the allowance for doubtful accounts in accounts payable $ (494 ) $ (815 ) $ (1,309 ) Accounts Payable: ·Reclassification of balances included in accounts payable to accounts receivable $ 2,114 ·Reclassification of the allowance for doubtful accounts in accounts payable (815 ) $ 9,243 $ 1,299 $ 10,542 ($ in thousands) For the fiscal year ended June 30, 2015 Consolidated Statement of Cash Flow Line Items As previously Reclassification As reclassified Accounts Receivable ·Reclassification of cash provided by and included in accounts payable to accounts receivable $ (2,517 ) $ (22 ) $ (2,539 ) Accounts Payable: ·Reclassification of cash used in and included in accounts payable to accounts receivable $ 919 $ 22 $ 941 ($ in thousands) For the fiscal year ended June 30, 2014 Consolidated Statement of Cash Flow Line Items As previously Reclassification As reclassified Accounts Receivable ·Reclassification of cash provided by and included in accounts payable to accounts receivable $ (157 ) $ (47 ) $ (204 ) Accounts Payable: ·Reclassification of cash used in and included in accounts payable to accounts receivable $ 413 $ 47 $ 460

ACQUISITION (Tables)

ACQUISITION (Tables)	12 Months Ended
	Jun. 30, 2016
Business Combinations [Abstract]
Schedule of fair values of the assets acquired and liabilities	($ in thousands) Consideration: Fair value of total consideration paid in cash $ 5,625 Acquisition / non-recurring acquisition expenses: $ 842 Recognized amounts of identifiable assets acquired and liabilities assumed: Financial Assets: Accounts receivable $ 3 Finance receivables 628 Other current assets 20 Deferred income taxes 18 669 Property, plant & equipment 81 Identifiable intangible assets: Developed technology 639 Customer relationships 149 Brand 95 Noncompete agreements 2 Fair value of intangible assets 885 Financial liabilities Accrued liabilities (50 ) Total identifiable net assets 1,585 Goodwill 4,040 Total Fair Value $ 5,625

EARNINGS PER SHARE CALCULATION

EARNINGS PER SHARE CALCULATION (Tables)	12 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Schedule of basic earnings per share and diluted earnings per share	Year Ended June 30 ($ in thousands, except per share data) 2016 2015 2014 Numerator for basic and diluted earnings per share Net income (loss) $ (6,806 ) $ (1,089 ) $ 27,531 Preferred dividends (668 ) (668 ) (668 ) Net income (loss) available to common shareholders $ (7,474 ) $ (1,757 ) $ 26,863 Denominator for basic earnings per share 36,309,047 35,719,211 34,667,769 Effect of dilutive potential common shares - - 341,790 Denominator for diluted earnings per share 36,309,047 35,719,211 # 35,009,559 Basic earnings (loss) per share $ (0.21 ) $ (0.05 ) $ 0.77 Diluted earnings (loss) per share $ (0.21 ) $ (0.05 ) $ 0.77

FINANCE RECEIVABLES (Tables)

FINANCE RECEIVABLES (Tables)	12 Months Ended
	Jun. 30, 2016
Receivables [Abstract]
Schedule of finance receivables	June 30, June 30, ($ in thousands) 2016 2015 Total finance receivables $ 7,306 $ 4,639 Less current portion 3,588 941 Non-current portion of finance receivables $ 3,718 $ 3,698
Schedule of credit quality indicators	Credit risk profile based on payment activity: June 30, June 30, 2016 2015 ($ in thousands) Performing $ 7,174 $ 4,619 Nonperforming 132 20 Total $ 7,306 $ 4,639
Schedule of age analysis of past due finance receivables	Age Analysis of Past Due Finance Receivables As of June 30, 2016 31 – 60 61 – 90 Greater than Total ($ in thousands) Days Past Days Past 90 Days Past Total Past Current Finance QuickStart Leases $ 98 $ 31 $ 3 $ 132 $ 7,174 $ 7,306 Age Analysis of Past Due Finance Receivables As of June 30, 2015 31 – 60 61 – 90 Greater than Total ($ in thousands) Days Past Days Past 90 Days Past Total Past Current Finance QuickStart Leases $ - $ 16 $ 5 $ 21 $ 4,618 $ 4,639
Schedule of financing receivable	($ in thousands) 2017 $ 3,588 2018 1,246 2019 1,246 2020 944 2021 and beyond 282 $ 7,306

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	Useful June 30, 2016 ($ in thousands) Lives Cost Accumulated Net Computer equipment and software 3-7 years $ 5,506 $ (4,374 ) $ 1,132 Property and equipment used for rental program 5 years 26,648 (18,246 ) 8,402 Furniture and equipment 3-7 years 874 (654 ) 220 Leasehold improvements Lesser of life or lease term 575 (564 ) 11 $ 33,603 $ (23,838 ) $ 9,765 Useful June 30, 2015 ($ in thousands) Lives Cost Accumulated Net Computer equipment and purchased software 3-7 years $ 4,670 $ (4,017 ) $ 653 Property and equipment used for rental program 5 years 26,469 (14,476 ) 11,993 Furniture and equipment 3-7 years 723 (572 ) 151 Leasehold improvements Lesser of life or lease term 575 (503 ) 72 $ 32,437 $ (19,568 ) $ 12,869

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	12 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of intangible asset balances	Beginning Year ended June 30, 2016 Ending ($ in thousands) Balance Additions/ Balance Amortization July 1, 2015 Adjustments Amortization June 30, 2016 Period Intangible Assets: Trademarks - Indefinite $ 432 $ (432 )(1) $ - $ - Indefinite Non-compete agreements - 2 (1 ) 1 2 years Brand - 95 (16 ) 79 3 years Developed technology - 639 (63 ) 576 5 years Customer relationships - 149 (7 ) 142 10 years Total Intangible Assets $ 432 $ 453 $ (87 ) $ 798 Goodwill 7,663 4,040 - 11,703 Indefinite Total Intangible Assets & Goodwill $ 8,095 $ 4,493 $ (87 ) $ 12,501 Beginning Year ended June 30, 2015 Ending ($ in thousands) Balance Additions/ Balance Amortization July 1, 2014 Adjustments Amortization June 30, 2015 Period Intangible assets: Trademarks - Indefinite $ 432 - - $ 432 Indefinite Total Intangible Assets $ 432 $ - $ - $ 432 Goodwill 7,663 - - 7,663 Indefinite Total $ 8,095 $ - $ - $ 8,095 (1) The Company’s test for impairment of its indefinite-lived trademarks consists of the trademarks: 1) VendingMiser, 2) CoolerMiser, 3) PlugMiser and 4) SnackMiser. As a result of its testing in fiscal years ended June 30, 2015 and 2014 the Company determined that no impairment had occurred. In the testing in fiscal year 2016, the Company determined that the sum of the expected discounted cash flows attributable to the trademarks was less than its carrying value of $432 thousand, and that an impairment write-down was required. The fair value of the trademarks was determined by a method known as “relief from royalty”, in which the fair value is determined by reference to the amount of royalty income the intangible would generate if it were licensed in an arm’s-length transaction. The essential assumptions in a valuation via an income approach are as follows: · The related dollar sales volume; · The percentage royalty on sales; · The adjustment for taxes; · The remaining useful economic life; · The percentage return on investment; and, · The tax amortization benefit.
Schedule of amortizable intangible asset	($ in thousands) Cost Accumulated Net Book Value Non-compete agreements $ 2 $ (1 ) $ 1 Brand 95 (16 ) $ 79 Developed Technology 639 (63 ) $ 576 Customer Relationships 149 (7 ) $ 142 $ 885 $ (87 ) $ 798
Schedule of estimated annual amortization expense	2017 $ 175 2018 175 2019 159 2020 143 2021 79 Thereafter 67 $ 798

ACCRUED EXPENSES (Tables)

ACCRUED EXPENSES (Tables)	12 Months Ended
	Jun. 30, 2016
Accrued Liabilities [Abstract]
Schedule of accrued expenses	June 30, June 30, ($ in thousands) 2016 2015 Accrued compensation and related sales commissions $ 1,268 $ 673 Accrued professional fees 809 301 Accrued taxes and filing fees 795 505 Advanced customer billings 236 390 Accrued rent 2 75 Accrued other 363 213 3,473 2,157 Less current portion (3,458 ) (2,108 ) $ 15 $ 49

LINE OF CREDIT (Tables)

LINE OF CREDIT (Tables)	12 Months Ended
	Jun. 30, 2016
Line Of Credit Facility [Abstract]
Schedule of line of credit facilities	For year ended ($ in thousands) June 30, 2016 2015 Principal balance at period-end $ 7,217 $ 4,000 Unamortized discount (98 ) - Line of credit, net $ 7,119 $ 4,000 Maximum amount outstanding at any month end $ 7,217 $ 5,000 Average balance outstanding during the period $ 4,959 $ 4,100 Weighted-average interest rate: As of the period-end 5.8 % 5.3 % Paid during the period 5.5 % 5.3 %

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	12 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Schedule of long-term debt	June 30, June 30, ($ in thousands) 2016 2015 Assignment of QuickStart Leases $ 1,600 $ 1,994 Capital lease obligations 605 338 $ 2,205 $ 2,332 Less current portion 629 478 $ 1,576 $ 1,854
Schedule of maturities of long-term debt	($ in thousands) 2017 $ 629 2018 625 2019 588 2020 358 2021 5 $ 2,205

FAIR VALUE OF FINANCIAL INSTR38

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Schedule of fair value of financial instruments required to be measured at fair value	($ in thousands) June 30, 2016 Level 1 Level 2 Level 3 Total Common stock warrant liability, 2.2 million warrants exercisable at $2.6058 from September 17, 2011 through September 17, 2016 $ - $ - $ 3,739 $ 3,739 June 30, 2015 Level 1 Level 2 Level 3 Total Common stock warrant liability, 3.9 million warrants exercisable at $2.6058 from September 17, 2011 through September 17, 2016 $ - $ - $ 978 $ 978
Schedule of changes in fair value of the company's level 3 financial instruments	For Year Ended ($ in thousands) June 30, 2016 2015 Beginning balance $ (978 ) $ (585 ) Increase due to change in fair value of warrant liabilities (5,674 ) (393 ) Reduction due to warrant exercises 2,913 - Ending balance $ (3,739 ) $ (978 )

WARRANTS (Tables)

WARRANTS (Tables)	12 Months Ended
	Jun. 30, 2016
Warrants [Abstract]
Schedule exercise prices and expiration dates for warrants	Exercise Warrants Price Expiration Outstanding Per Share Date 2,376,675 $ 2.61 September 18, 2016 45,000 $ 2.10 December 31, 2017 23,978 $ 5.00 March 29, 2021 2,445,653
Schedule of common stock warrant activity	Warrants Outstanding at June 30, 2013 7,361,708 Issued - Exercised (2,090,226 ) Expired (962,482 ) Outstanding at June 30, 2014 4,309,000 Issued - Exercised - Expired - Outstanding at June 30, 2015 4,309,000 Issued 23,978 Exercised (1,887,325 ) Expired - Outstanding at June 30, 2016 2,445,653

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Schedule of benefit (provision) for income taxes	($ in thousands) 2016 2015 2014 Current: Federal $ (7 ) $ (58 ) $ (21 ) State (38 ) (6 ) - (45 ) (64 ) (21 ) Deferred: Federal 407 365 20,970 State 253 (590 ) 6,306 660 (225 ) 27,276 $ 615 $ (289 ) $ 27,255
Schedule of income tax benefit in the provision for income taxes	($ in thousands) 2016 2015 2014 Indicated benefit (provision) at federal statutory rate of 34% $ 2,523 $ 272 $ (94 ) Effects of permanent differences (2,040 )(A) (215 ) (8 ) State income taxes, net of federal benefit 199 (410 ) (18 ) Income tax credits 70 40 - Changes related to prior years - 187 - Changes in valuation allowances (137 ) (163 ) 27,375 $ 615 $ (289 ) $ 27,255 (A) Increase in the effects of permanent differences due to the tax effect of the change in fair value of warrant liabilities in 2016
Schedule of deferred tax assets and liabilities	June 30, ($ in thousands) 2016 2015 Deferred tax assets: Net operating loss carryforwards $ 46,691 $ 46,919 Asset reserves 1,713 792 Deferred research and development costs 1,356 1,009 Intangibles 539 606 Deferred gain on assets under sale-leaseback transaction 331 632 Stock-based compensation 377 224 Other 379 437 51,386 50,619 Deferred tax liabilities: Fixed assets (528 ) (492 ) Intangibles and goodwill - (84 ) Deferred tax assets, net 50,858 50,043 Valuation allowance (23,134 ) (22,997 ) Deferred tax assets (liabilties), net of allowance 27,724 27,046 Less current portion 2,271 1,258 Deferred tax assets (liabilties), non-current $ 25,453 $ 25,788

STOCK BASED COMPENSATION PLANS

STOCK BASED COMPENSATION PLANS (Tables)	12 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of stock based compensation plans	Date Approved Name of Plan Type of Plan Authorized June 2013 2013 Stock Incentive Plan Stock 500,000 June 2014 2014 Stock Option Incentive Plan Stock Options 750,000 June 2015 2015 Equity Incentive Plan Stock & Stock Options 1,250,000 2,500,000
Schedule of common stock for future issuance	Exercise of Common Stock Warrants 2,445,653 Conversions of Preferred Stock and cumulative Preferred Stock dividends 99,999 Issuance under 2013 Stock Incentive Plan 162,330 Issuance under 2014 Stock Option Incentive Plan 737,215 Issuance under 2015 Stock Incentive Plan 1,250,000 Issuance to former Chief Executive Officer upon the occurrence of a USA Transaction 140,000 Total shares reserved for future issuance 4,835,197
Schedule of stock option granted weighted average assumptions	Year Ended Year ended Year ended June 30, 2016 June 30, 2015 June 30, 2014 Expected volatility 59-66% 78-79% 79% Expected life 4.5 years 7 years 7 years Expected dividends 0.00% 0.00% 0.00% Risk-free interest rate 1.46-1.49% 1.59-2.04% 2.22%
Schedule of options outstanding	For the Twelve Months Ended June 30, 2016 2015 2014 Shares Weighted Shares Weighted Shares Weighted Outstanding options, beginning of period 538,888 $ 1.32 120,000 $ 1.49 - - Granted 199,586 $ 1.63 438,888 $ 1.30 120,000 $ 1.49 Forfeited (95,000 ) $ 1.80 (20,000 ) $ 1.49 - - Excercised (33,333 ) $ 1.27 Outstanding options, end of period 610,141 $ 1.35 538,888 $ 1.33 120,000 $ 1.49
Schedule of information related to options	Options Outstanding Options Exercisable Range of Exercise Prices Options Outstanding Remaining Contractual Life Shares Exercisable Remaining Contractual Life Weighted Average Exercise Price $1.62 to $1.68 75,000 5.51 25,002 5.51 1.65 $1.80 295,555 5.16 195,555 5.16 1.8 $2.05 100,000 4.97 66,670 4.97 2.05 $2.09 10,000 5.58 3,333 5.58 2.09 $2.75 25,000 5.77 8,333 5.77 2.75 $2.94 75,000 6.53 - - - $3.38 29,586 6.06 - - - 610,141 5.42 298,893 5.17 1.87
Schedule of unvested options	For the Twelve Months Ended June 30, 2016 2015 2014 Shares Weighted Shares Weighted Shares Weighted Unvested options, beginning of period 505,553 $ 1.32 120,000 $ 1.49 - - Granted 199,586 $ 1.63 438,888 $ 1.30 120,000 $ 1.49 Vested (298,891 ) $ 1.31 (33,335 ) $ 1.49 - - Forfeited (95,000 ) $ 1.80 (20,000 ) $ 1.49 - - Unvested options, end of period 311,248 $ 1.39 505,553 $ 1.32 120,000 $ 1.49
Schedule of share based compensation arrangement by share based payment award, options outstanding and exercisable options	As of June 30, 2016 2015 2014 Options Exercisable Options Exercisable Options Exercisable Number 610,141 298,893 538,888 33,335 120,000 - Weighted average exercise price $ 2.07 $ 1.87 $ 1.86 $ 2.05 $ 2.05 - Aggregate intrinsic value $ 1,341,828 $ 717,343 $ 451,177 $ 21,668 $ 7,200 - Weighted average contractual term $ 5.42 5.17 6.21 5.97 6.97 - Share price as of June 30 $ 4.27 $ 4.27 $ 2.70 $ 2.70 $ 2.11 $ 2.11
Schedule of nonvested share activity	Weighted-Average Grant-Date Shares Fair Value Nonvested at June 30, 2013 97,146 $ 1.52 Granted 10,000 2.17 Vested (55,001 ) 1.62 Forfeited, Director changes (3,334 ) 0.94 Forfeited, Employee shares not earned (5,000 ) 1.52 Nonvested at June 30, 2014 43,811 $ 1.59 Granted 155,927 2.00 Vested (181,134 ) 1.89 Nonvested at June 30, 2015 18,604 $ 1.88 Granted 131,558 3.04 Vested (21,664 ) 2.70 Nonvested at June 30, 2016 128,498 $ 2.97

PREFERRED STOCK (Tables)

PREFERRED STOCK (Tables)	12 Months Ended
	Jun. 30, 2016
Preferred Stock [Abstract]
Schedule of preferred stock	($ in thousands) June 30, June 30, 2016 2015 For Shares outstanding at $10.00 per share $ 4,451 $ 4,451 Cumulative unpaid dividends 13,657 12,989 $ 18,108 $ 17,440

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of gain on sale of ePort equipment	($ in thousands) Year ended June 30, 2015 Rental equipment sold, cost $ 3,873 Rental equipment sold, accumulated depreciation upon sale (331 ) Rental equipment sold, net book value 3,542 Proceeds from sale 4,994 Gain on sale of rental equipment $ 1,452
Schedule of amount of gain recognized in consolidated statement of operations	($ in thousands) Year ended June 30, 2016 2015 Beginning balance $ 1,760 $ 1,142 Gain on sale of rental equipment - 1,452 Recognition of deferred gain (860 ) (834 ) Ending balance 900 1,760 Less current portion 860 860 Non-current portion of deferred gain $ 40 $ 900
Schedule of capital leases and non-cancellable operating leases	Operating Leases Other Operating Total Operating Capital ($ in thousands) from Sale Leaseback Leases Leases Leases 2017 $ 2,641 $ 552 $ 3,193 $ 299 2018 138 503 641 236 2019 - 498 498 142 2020 - 459 459 - 2021 - 468 468 - Thereafter - 963 963 - Total minimum lease payments $ 2,779 $ 3,443 $ 6,222 $ 677 Less Amount Representing interest 72 Present Value of net minimum lease payments 605 Less Current obligations under capital leases 255 Obligations under capital leases, less current portion $ 350

REVISIONS OF PREVIOUSLY REPOR44

REVISIONS OF PREVIOUSLY REPORTED CONSOLIDATED FINANCIAL STATEMENTS (Tables)	12 Months Ended
	Jun. 30, 2016
Change in Accounting Estimate [Abstract]
Schedule Of Revised Consolidated Statements of Operations	Revised Consolidated Statements of Operations ($ in thousands) Year ended June 30, 2014 As previously Adjustment As Revised Cumulative preferred dividends $ (664 ) $ (4 ) $ (668 ) Net income (loss) applicable to common shares $ 26,867 $ (4 ) $ 26,863 Net earnings (loss) per common share basic $ 0.78 $ (0.01 ) $ 0.77 Net earnings (loss) per common share diluted $ 0.78 $ (0.01 ) $ 0.77 Basic weighted average number of common shares outstanding 34,613,497 54,272 34,667,769 Diluted weighted average number of common shares outstanding 34,613,497 396,062 35,009,559
Schedule Of Revised Consolidated Statements of Equity	Revised Consolidated Statements of Equity ($ in thousands) Year ended June 30, 2014 Common Shares As previously Adjustment As Revised Stock based compensation 2010 Stock Incentive Plan 6,668 (3,334 ) 3,334 2011 Stock Incentive Plan 51,667 (51,667 ) - 2012 Stock Incentive Plan - 158,505 158,505 2013 Stock Incentive Plan 131,203 (75,393 ) 55,810 Retirement of common stock (49,311 ) (3,334 ) (52,645 ) Balance June 30, 2014 35,514,685 87,438 35,602,123 Year ended June 30, 2015 Common Shares As previously Adjustment As Revised Stock based compensation 2011 Stock Incentive Plan 10,002 (10,002 ) - 2012 Stock Incentive Plan 88,991 (55,293 ) 33,698 2013 Stock Incentive Plan 165,463 (5,722 ) 159,741 2014 Stock Incentive Plan - - - Retirement of common stock (31,899 ) - (31,899 ) Balance June 30, 2015 35,747,242 16,421 35,763,663

UNAUDITED QUARTERLY DATA (Table

UNAUDITED QUARTERLY DATA (Tables)	12 Months Ended
	Jun. 30, 2016
Quarterly Financial Data [Abstract]
Schedule of unaudited quarterly data	UNAUDITED YEAR ENDED JUNE 30, 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Year Revenues $ 16,600 $ 18,503 $ 20,361 $ 21,944 $ 77,408 Gross profit $ 5,047 $ 5,483 $ 5,672 $ 5,783 $ 21,985 Operating income (loss) $ 112 $ 594 $ (595 ) $ (1,578 ) $ (1,467 ) Net income (loss) $ 360 $ (874 ) $ (5,420 ) $ (872 ) $ (6,806 ) Cumulative preferred dividends $ (334 ) $ - $ (334 ) $ - $ (668 ) Net income (loss) applicable to common shares $ 26 $ (874 ) $ (5,754 ) $ (872 ) $ (7,474 ) Net earnings (loss) per common share: Basic $ 0.00 $ (0.02 ) $ (0.16 ) $ (0.02 ) $ (0.21 ) Diluted $ 0.00 $ (0.02 ) $ (0.16 ) $ (0.02 ) $ (0.21 ) Weighted average number of common shares outstanding: Basic 35,848,395 35,909,933 36,161,626 37,325,681 36,309,047 Diluted 36,487,879 35,909,933 36,161,626 37,325,681 36,309,047 UNAUDITED YEAR ENDED JUNE 30, 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Year Revenues $ 12,253 $ 12,821 $ 15,358 $ 17,645 $ 58,077 Gross profit $ 3,135 $ 3,733 $ 5,146 $ 4,809 $ 16,823 Operating income (loss) $ (667 ) $ 51 $ 731 $ (355 ) $ (240 ) Net income (loss) $ (61 ) $ (261 ) $ (567 ) $ (200 ) $ (1,089 ) Cumulative preferred dividends $ (334 ) $ - $ (334 ) $ - $ (668 ) Net income (loss) applicable to common shares $ (395 ) $ (261 ) $ (901 ) $ (200 ) $ (1,757 ) Net earnings (loss) per common share Basic $ (0.01 ) $ (0.01 ) $ (0.03 ) $ (0.01 ) $ (0.05 ) Diluted $ (0.01 ) $ (0.01 ) $ (0.03 ) $ (0.01 ) $ (0.05 ) Weighted average number of common shares outstanding: Basic 35,651,732 35,716,848 35,747,979 35,761,370 35,719,211 Diluted 35,651,732 35,716,848 35,747,979 36,206,934 35,719,211

ACCOUNTING POLICIES (Details)

ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Jun. 30, 2015
Accounts Receivable, net of allowance for doubtful accounts:
Accounts Receivable, net of allowance for doubtful accounts	$ 4,899	$ 5,971
Allowance for Doubtful Accounts:
Reclassification of the allowance for doubtful accounts in accounts payable	(2,814)	(1,309)
Accounts Payable:
Accounts payable	$ 12,354	10,542
As Reported
Accounts Receivable, net of allowance for doubtful accounts:
Accounts Receivable, net of allowance for doubtful accounts		4,672
Allowance for Doubtful Accounts:
Reclassification of the allowance for doubtful accounts in accounts payable		(494)
Accounts Payable:
Accounts payable		9,243
Reclassification
Accounts Receivable, net of allowance for doubtful accounts:
Reclassification of balances included in accounts payable to accounts receivable		2,114
Reclassification of the allowance for doubtful accounts in accounts payable		(815)
Accounts Receivable, net of allowance for doubtful accounts		1,299
Allowance for Doubtful Accounts:
Reclassification of the allowance for doubtful accounts in accounts payable		(815)
Accounts Payable:
Reclassification of balances included in accounts payable to accounts receivable		2,114
Reclassification of the allowance for doubtful accounts in accounts payable		(815)
Accounts payable		$ 1,299

ACCOUNTING POLICIES (Details 1)

ACCOUNTING POLICIES (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Accounts Receivable
Reclassification of cash provided by and included in accounts payable to accounts receivable	$ (2,539)	$ (204)
Accounts Payable:
Reclassification of cash used in and included in accounts payable to accounts receivable	941	460
As Reported
Accounts Receivable
Reclassification of cash provided by and included in accounts payable to accounts receivable	(2,517)	(157)
Accounts Payable:
Reclassification of cash used in and included in accounts payable to accounts receivable	919	413
Reclassification
Accounts Receivable
Reclassification of cash provided by and included in accounts payable to accounts receivable	(22)	(47)
Accounts Payable:
Reclassification of cash used in and included in accounts payable to accounts receivable	$ 22	$ 47

ACCOUNTING POLICIES (Detail Tex

ACCOUNTING POLICIES (Detail Textuals) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Accounting Policies [Abstract]
Term of notes receivable or quick start leases		60 months
Goodwill and Intangible Asset Impairment	$ 432
Description rental JumpStart program for ePort devices	The Company offers its customers a rental program for its ePort devices, the JumpStart program (“JumpStart”). JumpStart terms are typically 36 months and are cancellable with thirty to sixty days’ written notice.
Term of non cancelable lease with agreement	5 years

ACCOUNTING POLICIES (Detail T49

ACCOUNTING POLICIES (Detail Textuals 1) - Customer one - Customer	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
License and transaction processing revenues
Concentration Risk [Line Items]
Concentration percentage	16.00%	21.00%	26.00%
Number of customers	1	1	1
Equipment sales revenue
Concentration Risk [Line Items]
Concentration percentage	28.00%	17.00%
Number of customers	1	1
Trade accounts and finance receivables
Concentration Risk [Line Items]
Concentration percentage	18.00%	35.00%	22.00%
Number of customers	1	1	1

ACCOUNTING POLICIES (Detail T50

ACCOUNTING POLICIES (Detail Textuals 2) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Accounting Policies [Abstract]
Term of products warranty	One to three years
Research and development expenses	$ 1,400	$ 1,500	$ 1,000
Advertising expense	$ 300	$ 200	$ 200
Net income per common share-basic and diluted (in dollars per share)	$ (0.21)	$ (0.05)	$ 0.77	$ 0.78
Capitaisation of software development	$ 137
Amortisation of capitalized software development	3 years

ACQUISITION (Details)

ACQUISITION (Details) - USD ($) $ in Thousands	Jan. 15, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Consideration:
Fair value of total consideration paid in cash		$ 5,625
Financial liabilities
Goodwill		$ 11,703	$ 7,663	$ 7,663
Vendscreen, Inc
Consideration:
Fair value of total consideration paid in cash	$ 5,625
Acquisition / non-recurring acquisition expenses:	842
Financial Assets:
Accounts receivable	3
Finance receivables	628
Other current assets	20
Deferred income taxes	18
Financial assets, total	669
Property, plant & equipment	81
Identifiable intangible assets:
Fair value of intangible assets	885
Financial liabilities
Accrued liabilities	(50)
Total identifiable net assets	1,585
Goodwill	4,040
Total Fair Value	5,625
Vendscreen, Inc | Developed technology
Identifiable intangible assets:
Fair value of intangible assets	639
Vendscreen, Inc | Customer relationships
Identifiable intangible assets:
Fair value of intangible assets	149
Vendscreen, Inc | Brand
Identifiable intangible assets:
Fair value of intangible assets	95
Vendscreen, Inc | Non-compete agreements
Identifiable intangible assets:
Fair value of intangible assets	$ 2

ACQUISITION (Detail Textuals)

ACQUISITION (Detail Textuals) $ in Thousands	Jan. 15, 2016USD ($)CustomerConnection	Jun. 30, 2016USD ($)
Business Acquisition [Line Items]
Cash paid for assets acquired from VendScreen		$ 5,625
Vendscreen, Inc
Business Acquisition [Line Items]
Cash paid for assets acquired from VendScreen	$ 5,625
Purchase price funding using cash	2,625
Purchase price from term loan	$ 3,000
Number of customers | Customer	150
Number of connections | Connection	6,000
Percentage of new customers of USAT	50.00%
Business combination net revenues contributed		1,200
Fair value of intangible assets	$ 885
Non recurring expenses incurred in connection with acquisition		$ 842
Vendscreen, Inc | Developed technology
Business Acquisition [Line Items]
Amortization period	5 years
Fair value of intangible assets	$ 639
Vendscreen, Inc | Customer relationships
Business Acquisition [Line Items]
Amortization period	10 years
Fair value of intangible assets	$ 149
Vendscreen, Inc | Non-compete agreements
Business Acquisition [Line Items]
Amortization period	2 years
Fair value of intangible assets	$ 2
Vendscreen, Inc | Brand
Business Acquisition [Line Items]
Amortization period	3 years
Fair value of intangible assets	$ 95

EARNINGS PER SHARE CALCULATIO53

EARNINGS PER SHARE CALCULATION (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Numerator for basic and diluted earnings per share
Net income (loss)	$ (872)	$ (5,420)	$ (874)	$ 360	$ (200)	$ (567)	$ (261)	$ (61)	$ (6,806)	$ (1,089)	$ 27,531
Preferred dividends		(334)		(334)		(334)		(334)	(668)	(668)	(668)
Net income (loss) available to common shareholders	$ (872)	$ (5,754)	$ (874)	$ 26	$ (200)	$ (901)	$ (261)	$ (395)	$ (7,474)	$ (1,757)	$ 26,863
Denominator for basic earnings per share - Weighted average shares outstanding	37,325,681	36,161,626	35,909,933	35,848,395	35,761,370	35,747,979	35,716,848	35,651,732	36,309,047	35,719,211	34,667,769
Effect of dilutive potential common shares											341,790
Denominator for diluted earnings per share - Adjusted weighted average shares outstanding	37,325,681	36,161,626	35,909,933	36,487,879	36,206,934	35,747,979	35,716,848	35,651,732	36,309,047	35,719,211	35,009,559
Basic earnings (loss) per share	$ (0.02)	$ (0.16)	$ (0.02)	$ 0	$ (0.01)	$ (0.03)	$ (0.01)	$ (0.01)	$ (0.21)	$ (0.05)	$ 0.77	$ 0.78
Diluted earnings (loss) per share	$ (0.02)	$ (0.16)	$ (0.02)	$ 0	$ (0.01)	$ (0.03)	$ (0.01)	$ (0.01)	$ (0.21)	$ (0.05)	$ 0.77

EARNINGS PER SHARE CALCULATIO54

EARNINGS PER SHARE CALCULATION (Detail Textuals) - shares	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Earnings Per Share [Abstract]
Antidilutive shares excluded from the calculation of diluted earnings per shares	1,168,689	252,827	98,497

FINANCE RECEIVABLES - Informati

FINANCE RECEIVABLES - Information regarding finance receivables (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Jun. 30, 2015
Receivables [Abstract]
Total Finance Receivables	$ 7,306	$ 4,639
Less current portion	3,588	941
Non-current portion of finance receivables	$ 3,718	$ 3,698

FINANCE RECEIVABLES - Credit ri

FINANCE RECEIVABLES - Credit risk profile based on payment activity (Details 1) - USD ($) $ in Thousands	Jun. 30, 2016	Jun. 30, 2015
Financing Receivable, Recorded Investment [Line Items]
Total finance receivables	$ 7,306	$ 4,639
Performing
Financing Receivable, Recorded Investment [Line Items]
Total finance receivables	7,174	4,619
Nonperforming
Financing Receivable, Recorded Investment [Line Items]
Total finance receivables	$ 132	$ 20

FINANCE RECEIVABLES - Age analy

FINANCE RECEIVABLES - Age analysis of past due finance receivables (Details 2) - USD ($) $ in Thousands	Jun. 30, 2016	Jun. 30, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Finance Receivables	$ 7,306	$ 4,639
QuickStart Leases
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	132	21
Current	7,174	4,618
Total Finance Receivables	7,306	4,639
QuickStart Leases | 31- 60 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	98
QuickStart Leases | 61- 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	31	16
QuickStart Leases | Greater than 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 3	$ 5

FINANCE RECEIVABLES (Details 3)

FINANCE RECEIVABLES (Details 3) $ in Thousands	Jun. 30, 2016USD ($)
Accounting Policies [Abstract]
2,017	$ 3,588
2,018	1,246
2,019	1,246
2,020	944
2021 and beyond	282
Total Financial Receivable	$ 7,306

PROPERTY AND EQUIPMENT, net - S

PROPERTY AND EQUIPMENT, net - Summary of property and equipment at cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 33,603	$ 32,437
Less accumulated depreciation	(23,838)	(19,568)
Property and equipment, net	$ 9,765	$ 12,869
Computer equipment purchased software
Property, Plant and Equipment [Line Items]
Useful lives	3-7 years	3-7 years
Property, plant and equipment, gross	$ 5,506	$ 4,670
Less accumulated depreciation	(4,374)	(4,017)
Property and equipment, net	$ 1,132	$ 653
Property and equipment used for rental program
Property, Plant and Equipment [Line Items]
Useful lives	5 years	5 years
Property, plant and equipment, gross	$ 26,648	$ 26,469
Less accumulated depreciation	(18,246)	(14,476)
Property and equipment, net	$ 8,402	$ 11,993
Furniture and equipment
Property, Plant and Equipment [Line Items]
Useful lives	3-7 years	3-7 years
Property, plant and equipment, gross	$ 874	$ 723
Less accumulated depreciation	(654)	(572)
Property and equipment, net	$ 220	$ 151
Leasehold improvements
Property, Plant and Equipment [Line Items]
Useful lives	Lesser of life or lease term	Lesser of life or lease term
Property, plant and equipment, gross	$ 575	$ 575
Less accumulated depreciation	(564)	(503)
Property and equipment, net	$ 11	$ 72

PROPERTY AND EQUIPMENT, net (De

PROPERTY AND EQUIPMENT, net (Detail Textuals) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Property, Plant and Equipment [Abstract]
Assets under capital leases	$ 2,600	$ 2,100
Capital lease amortization included in depreciation expense	$ 271	$ 349	$ 305

GOODWILL AND INTANGIBLE ASSET61

GOODWILL AND INTANGIBLE ASSETS - Summary of intangible assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Goodwill [Roll Forward]
Goodwill, Beginning Balance	$ 7,663	$ 7,663
Goodwill, Additions / Adjustments	4,040
Goodwill, Amortization
Goodwill, Ending Balance	$ 11,703	$ 7,663	$ 7,663
Goodwill, Amortization Period	Indefinite	Indefinite
Finite-lived Intangible Assets [Roll Forward]
Additions / Adjustments	$ 453
Amortization	87		22
Ending Balance	798
Intangible Assets, Net (Including Goodwill) [Abstract]
Intangible Assets, Beginning Balance	8,095	8,095
Intangible Assets, Additions	4,493
Intangible Assets, Amortization	(87)
Intangible Assets, Ending Balance	12,501	8,095	8,095
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Total Intangible Assets	432	432
Additions / Adjustments	453
Amortization	(87)		(22)
Total Intangible Assets	798	432	432
Trademarks
Indefinite-lived Intangible Assets [Roll Forward]
Indefinite Intangible Assets, Beginning Balance	432	432
Additions / Adjustments	(432)
Amortization
Indefinite Intangible Assets, Ending Balance		$ 432	$ 432
Amortization Period	Indefinite	Indefinite
Non-compete agreements
Finite-lived Intangible Assets [Roll Forward]
Beginning Balance
Additions / Adjustments	2
Amortization	(1)
Ending Balance	$ 1
Amortization Period	2 years
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Additions / Adjustments	$ 2
Amortization	$ 1
Amortization Period	2 years
Brand
Finite-lived Intangible Assets [Roll Forward]
Beginning Balance
Additions / Adjustments	95
Amortization	(16)
Ending Balance	$ 79
Amortization Period	3 years
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Additions / Adjustments	$ 95
Amortization	$ 16
Amortization Period	3 years
Developed Technology
Finite-lived Intangible Assets [Roll Forward]
Beginning Balance
Additions / Adjustments	639
Amortization	(63)
Ending Balance	$ 576
Amortization Period	5 years
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Additions / Adjustments	$ 639
Amortization	$ 63
Amortization Period	5 years
Customer relationships
Finite-lived Intangible Assets [Roll Forward]
Beginning Balance
Additions / Adjustments	149
Amortization	(7)
Ending Balance	$ 142
Amortization Period	10 years
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Additions / Adjustments	$ 149
Amortization	$ 7
Amortization Period	10 years

GOODWILL AND INTANGIBLE ASSET62

GOODWILL AND INTANGIBLE ASSETS - Summary of amortizable intangible asset (Details 1) - USD ($) $ in Thousands	Jun. 30, 2016	Jun. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Amortizable intangible assets, Cost	$ 885
Amortizable intangible assets, Accumulated amortization	(87)
Amortizable intangible assets, Net book value	798
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Amortizable intangible assets, Cost	2
Amortizable intangible assets, Accumulated amortization	(1)
Amortizable intangible assets, Net book value	1
Brand
Finite-Lived Intangible Assets [Line Items]
Amortizable intangible assets, Cost	95
Amortizable intangible assets, Accumulated amortization	(16)
Amortizable intangible assets, Net book value	79
Developed Technology
Finite-Lived Intangible Assets [Line Items]
Amortizable intangible assets, Cost	639
Amortizable intangible assets, Accumulated amortization	(63)
Amortizable intangible assets, Net book value	576
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Amortizable intangible assets, Cost	149
Amortizable intangible assets, Accumulated amortization	(7)
Amortizable intangible assets, Net book value	$ 142

GOODWILL AND INTANGIBLE ASSET63

GOODWILL AND INTANGIBLE ASSETS - Summary of estimated annual amortization expense for amortizable intangible asset (Details 2) $ in Thousands	Jun. 30, 2016USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2,017	$ 175
2,018	175
2,019	159
2,020	143
2,021	79
Thereafter	67
Amortizable intangible assets, Net book value	$ 798

GOODWILL AND INTANGIBLE ASSET64

GOODWILL AND INTANGIBLE ASSETS - (Detail Textuals) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense of acquired intangible assets	$ 87		$ 22
Impairment write-down of trademark	$ 432

ACCRUED EXPENSES - Information

ACCRUED EXPENSES - Information regarding accrued expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Jun. 30, 2015
Accrued Liabilities [Abstract]
Accrued compensation and related sales commissions	$ 1,268	$ 673
Accrued professional fees	809	301
Accrued taxes and filing fees	795	505
Advanced customer billings	236	390
Accrued rent	2	75
Accrued other	363	213
Accrued expenses, total	3,473	2,157
Less current portion	(3,458)	(2,108)
Accrued expenses, less current portion	$ 15	$ 49

LINE OF CREDIT - Summary of lin

LINE OF CREDIT - Summary of line of credit (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Line Of Credit Facility [Abstract]
Principal balance at period-end	$ 7,217	$ 4,000
Unamortized discount	(98)
Line of credit, net	7,119	4,000
Maximum amount outstanding at any month end	7,217	5,000
Average balance outstanding during the period	$ 4,959	$ 4,100
Weighted-average interest rate:
As of the period-end	5.80%	5.30%
Paid during the period	5.50%	5.30%

LINE OF CREDIT (Detail Textuals

LINE OF CREDIT (Detail Textuals) - USD ($) $ / shares in Units, $ in Thousands	Jan. 15, 2016	Mar. 29, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Line of Credit Facility [Line Items]
Number of common stock called by warrants			2,200,000	3,900,000
Exercise price of warrants per share			$ 2.6058	$ 2.6058
Line of credit, net			$ 7,119	$ 4,000
Interest expense			600	302	$ 257
Avidbank Corporate Finance | Loan and Security Agreement | Term loan
Line of Credit Facility [Line Items]
Line of credit facility, basis of measurement	prime rate
Line of credit facility, interest rate description	The Term Loan bears interest at an annual rate equal to 1.75% above the prime rate as published from time to time by The Wall Street Journal, or five percent (5%), whichever is higher.
Debt instrument term	3 years
Principal amount of term loan	$ 3,000
Amount of increases in available line of credit	7,500
Line of Credit
Line of Credit Facility [Line Items]
Interest expense			260	211	$ 221
Line of Credit | Commercial Bank | Warrants | Loan and Security Agreement
Line of Credit Facility [Line Items]
Number of common stock called by warrants		45,000
Exercise price of warrants per share		$ 2.10
Fair value of warrants		$ 55
Revolving line of credit facility | Avidbank Corporate Finance | Loan and Security Agreement
Line of Credit Facility [Line Items]
Maximum limit of amount under line of credit	$ 7,000
Line of credit facility, interest rate description	prime rate
Percentage of interest rate above prime rate	2.00%
Percentage of interest rate on line of credit	5.00%
Debt instrument term	3 years
Line of credit, net				$ 4,000
Principal amount of term loan	$ 3,000
Revolving line of credit facility | Heritage Bank of Commerce | Loan and Security Agreement
Line of Credit Facility [Line Items]
Maximum limit of amount under line of credit		$ 12,000
Number of common stock called by warrants		24,000
Exercise price of warrants per share		$ 5
Percentage of interest rate above prime rate		2.25%
Percentage of interest rate on line of credit		3.50%
Line of credit, net		$ 12,000	7,200
Amount of increases in available line of credit			4,800
Line of credit facility capacity available to satisfy loan		$ 7,000
Percentage of license and transaction fee revenue		85.00%
Line of credit facility amount available under line of credit			$ 4,800
Fair value of warrants		$ 52
Debt discount		$ 80
Revolving line of credit facility | Heritage Bank of Commerce | Warrants | Loan and Security Agreement
Line of Credit Facility [Line Items]
Number of common stock called by warrants		23,978
Exercise price of warrants per share		$ 5

LONG-TERM DEBT - Long-term debt

LONG-TERM DEBT - Long-term debt (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Jun. 30, 2015
Debt Instrument [Line Items]
Long-term debt	$ 2,205	$ 2,332
Less current portion	629	478
Long-term debt, less current portion	1,576	1,854
Assignment Of Quickstart Leases
Debt Instrument [Line Items]
Long-term debt	1,600	1,994
Capital Lease Obligations
Debt Instrument [Line Items]
Long-term debt	$ 605	$ 338

LONG-TERM DEBT-Maturities of lo

LONG-TERM DEBT-Maturities of long-term debt (Details 1) - USD ($) $ in Thousands	Jun. 30, 2016	Jun. 30, 2015
Debt Disclosure [Abstract]
2,017	$ 629
2,018	625
2,019	588
2,020	358
2,021	5
Long-term debt	$ 2,205	$ 2,332

LONG-TERM DEBT (Detail Textuals

LONG-TERM DEBT (Detail Textuals) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	May 31, 2015	Feb. 28, 2015	Jun. 30, 2014
Debt Instrument [Line Items]
Term of notes receivable or quick start leases		60 months
Capital Lease Obligations
Debt Instrument [Line Items]
Capital lease obligations	$ 444	$ 108			$ 325
Capital Lease Obligations | Minimum
Debt Instrument [Line Items]
Percentage of interest rates	5.60%
Capital lease obligations term	2 years
Capital Lease Obligations | Maximum
Debt Instrument [Line Items]
Percentage of interest rates	9.00%
Capital lease obligations term	5 years
Assignment Of Quickstart Leases
Debt Instrument [Line Items]
Financing lease obligations			$ 304	$ 1,800
Assignment Of Quickstart Leases | Minimum
Debt Instrument [Line Items]
Percentage of interest rates	9.40%
Assignment Of Quickstart Leases | Maximum
Debt Instrument [Line Items]
Percentage of interest rates	9.50%

FAIR VALUE OF FINANCIAL INSTR71

FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair value of the company financial instruments that are required to be measured at fair value (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Jun. 30, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Common stock warrant liability, warrants exercisable at $2.6058 from September 17, 2011 through September 17, 2016	$ 3,739	$ 978
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Common stock warrant liability, warrants exercisable at $2.6058 from September 17, 2011 through September 17, 2016
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Common stock warrant liability, warrants exercisable at $2.6058 from September 17, 2011 through September 17, 2016
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Common stock warrant liability, warrants exercisable at $2.6058 from September 17, 2011 through September 17, 2016	$ 3,739	$ 978

FAIR VALUE OF FINANCIAL INSTR72

FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair value of the company financial instruments that are required to be measured at fair value (Parentheticals) (Details) - $ / shares shares in Millions	Jun. 30, 2016	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Exercise price of warrants per share	$ 2.6058	$ 2.6058
Number of common stock called by warrants	2.2	3.9

FAIR VALUE OF FINANCIAL INSTR73

FAIR VALUE OF FINANCIAL INSTRUMENTS - Changes in fair value of the Company level 3 financial instruments (unaudited) (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ (978)	$ (585)
Increase due to change in fair value of warrant liabilities	(5,674)	(393)
Reduction due to warrant exercises	2,913
Ending balance	$ (3,739)	$ (978)

FAIR VALUE OF FINANCIAL INSTR74

FAIR VALUE OF FINANCIAL INSTRUMENTS (Detail Textuals) - USD ($) $ in Thousands, shares in Millions	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of common stock called by warrants	2.2	3.9
Fair values of Level 3 financial instrument	$ 3,739	$ 978
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of common stock called by warrants	2.2	3.9
Valuation method used to determine fair value	proprietary valuation models
Fair values of Level 3 financial instrument	$ 3,739	$ 978

WARRANTS - Exercise prices and

WARRANTS - Exercise prices and expiration dates for warrants outstanding (Details) - $ / shares	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Class of Warrant or Right [Line Items]
Exercise Price Per Share	$ 2.6058	$ 2.6058
Warrants
Class of Warrant or Right [Line Items]
Warrants Outstanding	2,445,653	4,309,000	4,309,000	7,361,708
Warrants | September 18, 2016
Class of Warrant or Right [Line Items]
Warrants Outstanding	2,376,675
Exercise Price Per Share	$ 2.61
Expiration Date	Sep. 18, 2016
Warrants | December 31, 2017
Class of Warrant or Right [Line Items]
Warrants Outstanding	45,000
Exercise Price Per Share	$ 2.10
Expiration Date	Dec. 31, 2017
Warrants | March 29, 2021
Class of Warrant or Right [Line Items]
Warrants Outstanding	23,978
Exercise Price Per Share	$ 5
Expiration Date	Mar. 29, 2021

WARRANTS - Summary of warrant a

WARRANTS - Summary of warrant activity (Details 1) - Warrants - shares	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Class Of Warrant Or Right [Roll Forward]
Outstanding at June 30	4,309,000	4,309,000	7,361,708
Issued	23,978
Exercised	(1,887,325)		(2,090,226)
Expired			(962,482)
Outstanding at June 30	2,445,653	4,309,000	4,309,000

WARRANTS (Detail Textuals)

WARRANTS (Detail Textuals) - USD ($)	1 Months Ended	12 Months Ended
	Mar. 29, 2016	Jun. 30, 2016	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2015	Dec. 31, 2013	Jul. 07, 2013	May 31, 2013	May 12, 2013	May 12, 2010
Class of Warrant or Right [Line Items]
Number of common stock called by warrants		2,200,000			3,900,000
Exercise price per share		$ 2.6058			$ 2.6058
Cashless exercise of warrants in issuance of common stock				36,186
Non-cash interest and amortization of debt discount		$ 13,000	$ 2,000
Placement Agent
Class of Warrant or Right [Line Items]
Number of common stock called by warrants				13,216
Exercise price per share				$ 1.13
Common Stock
Class of Warrant or Right [Line Items]
Number of shares of common stock remain unexercised								1,258
Common Stock | Placement Agent
Class of Warrant or Right [Line Items]
Number of common stock issued for cashless exercise of warrants				17,094
Proceeds from issuance of common stock				$ 14,934
2010 Public Offering | Common Stock
Class of Warrant or Right [Line Items]
Number of shares of common stock remain unexercised						59,000
Warrants | Loan and Security Agreement | Commercial Bank | Line of Credit
Class of Warrant or Right [Line Items]
Number of common stock called by warrants	45,000
Exercise price per share	$ 2.10
Fair value of warrants	$ 55,000
Warrants | 2010 Public Offering
Class of Warrant or Right [Line Items]
Number of common stock called by warrants										2,800,000
Exercise price per share			$ 1.13							$ 1.13
Number of warrants exercised			2,100,000
Proceeds from issuance of common stock			$ 2,400,000
Warrants | 2010 Public Offering | Placement Agent
Class of Warrant or Right [Line Items]
Number of common stock called by warrants							15,717		165,207
Exercise price per share							$ 1.13		$ 1.13

WARRANTS (Detail Textuals 1)

WARRANTS (Detail Textuals 1) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014	Mar. 17, 2011
Class of Warrant or Right [Line Items]
Warrants issued	2.2	3.9
Exercise price per share	$ 2.6058	$ 2.6058
Warrant liabilities	$ 3,739	$ 978	$ 585
Warrants | Private Placement Offering 2011
Class of Warrant or Right [Line Items]
Warrants issued				4.3
Exercise price per share				$ 2.6058
Number of warrants exercisable	2.4			4.3
Number of warrants exercised	1.9
Proceeds from issuance of common stock	$ 4,920
Number of shares of common stock remain unexercised				3.9

WARRANTS (Detail Textuals 2)

WARRANTS (Detail Textuals 2) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	1 Months Ended	12 Months Ended
	Mar. 29, 2016	Jun. 30, 2016	Jun. 30, 2014	Jun. 30, 2015
Class Of Warrant Or Right [Line Items]
Number of common stock called by warrants		2,200		3,900
Exercise price of warrants per share		$ 2.6058		$ 2.6058
Non-cash interest and amortization of debt discount		$ 13	$ 2
Revolving line of credit facility | Loan and Security Agreement | Heritage Bank of Commerce
Class Of Warrant Or Right [Line Items]
Maximum limit of amount under line of credit	$ 12,000
Number of common stock called by warrants	24
Exercise price of warrants per share	$ 5
Fair value of warrants	$ 52
Non-cash interest and amortization of debt discount		$ 13

INCOME TAXES - Summary of benef

INCOME TAXES - Summary of benefit (provision) for income taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Current:
Federal	$ (7)	$ (58)	$ (21)
State	(38)	(6)
Current income tax (expense) benefit	(45)	(64)	(21)
Deferred:
Federal	407	365	20,970
State	253	(590)	6,306
Deferred tax (expense) benefit	660	(225)	27,276
Benefit (provision) for income taxes	$ 615	$ (289)	$ 27,255

INCOME TAXES - Summary of recon

INCOME TAXES - Summary of reconciliation of the benefit (provision) for income taxes (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Income Tax Disclosure [Abstract]
Indicated benefit (provision) at federal statutory rate of 34%	$ 2,523	$ 272	$ (94)
Effects of permanent differences	(2,040)	(215)	(8)
State income taxes, net of federal benefit	199	(410)	(18)
Income tax credits	70	40
Changes related to prior years		187
Change in valuation allowances	(137)	(163)	27,375
Benefit (provision) for income taxes	$ 615	$ (289)	$ 27,255

INCOME TAXES - Summary of net d

INCOME TAXES - Summary of net deferred tax assets (Details 2) - USD ($) $ in Thousands	Jun. 30, 2016	Jun. 30, 2015
Deferred tax assets:
Net operating loss carryforwards	$ 46,691	$ 46,919
Asset reserves	1,713	792
Deferred research and development costs	1,356	1,009
Intangibles	539	606
Deferred gain on assets under sale-leaseback transaction	331	632
Stock-based compensation	377	224
Other	379	437
Deferred tax assets, gross	51,386	50,619
Deferred tax liabilities:
Fixed assets	(528)	(492)
Intangibles and goodwill		(84)
Deferred tax assets, net	50,858	50,043
Valuation allowance	(23,134)	(22,997)
Deferred tax assets (liabilities), net of allowance	27,724	27,046
Less current portion	2,271	1,258
Deferred tax assets (liabilities), non-current	$ 25,453	$ 25,788

INCOME TAXES (Detail Textuals)

INCOME TAXES (Detail Textuals) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Reduction valuation allowances recorded in prior periods	$ 64,000
Valuation allowance	$ 23,134	$ 22,997
State and federal income tax effects		$ 396
Federal statutory rate	34.00%	34.00%
Net operating loss carryforwards	$ 162,000
Maximum amount of net operating loss carryforwards	$ 124,000

STOCK BASED COMPENSATION PLAN84

STOCK BASED COMPENSATION PLANS - Summary of stock based compensation plans (Details)	Jun. 30, 2016shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized to purchase	2,500,000
June 2013 | 2013 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized to purchase	500,000
June 2014 | 2014 Stock Option Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized to purchase	750,000
June 2015 | 2015 Stock Option Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized to purchase	1,250,000

STOCK BASED COMPENSATION PLAN85

STOCK BASED COMPENSATION PLANS - Summary of reserved shares of common stock for future issuance (Details 1)	12 Months Ended
	Jun. 30, 2016shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise of Common Stock Warrants	2,445,653
Conversions of Preferred Stock and cumulative Preferred Stock dividends	99,999
Total shares reserved for future issuance	4,835,197
2013 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance under Stock Incentive Plan	162,330
2014 Stock Option Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance under Stock Incentive Plan	737,215
Issuance under 2015 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance under Stock Incentive Plan	1,250,000
Former Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance under Stock Incentive Plan	140,000

STOCK BASED COMPENSATION PLAN86

STOCK BASED COMPENSATION PLANS - Summary of valuation assumption (Details 2) - Stock options	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility			79.00%
Expected life	4 years 6 months	7 years	7 years
Expected dividends	0.00%	0.00%	0.00%
Risk-free interest rate			2.22%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	59.00%	78.00%
Risk-free interest rate	1.46%	1.59%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	66.00%	79.00%
Risk-free interest rate	1.49%	2.04%

STOCK BASED COMPENSATION PLAN87

STOCK BASED COMPENSATION PLANS - Summary of options outstanding (Details 3) - Stock options - $ / shares	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Shares
Outstanding options, beginning of period	538,888	120,000
Granted	199,586	438,888	120,000
Forfeited	(95,000)	(20,000)
Excercised	(33,333)
Outstanding options, end of period	610,141	538,888	120,000
Weighted Average Grant Date Fair Value
Weighted average exercise price, Options Outstanding	$ 1.33	$ 1.49
Granted	1.63	1.30	1.49
Forfeited	1.80	1.49
Excercised	1.27
Weighted average exercise price, Options Outstanding	$ 1.35	$ 1.33	$ 1.49

STOCK BASED COMPENSATION PLAN88

STOCK BASED COMPENSATION PLANS - Summary of information related to options (Details 4) - Stock options - $ / shares	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options, Outstanding	610,141	538,888	120,000
Options Outstanding, Remaining Contractual Life	5 years 5 months 1 day	6 years 2 months 16 days	6 years 11 months 19 days
Options Exercisable	298,893	33,335
Options Exercisable, Remaining Contractual Life	5 years 2 months 1 day	5 years 11 months 19 days
Options Exercisable, Weighted Average Exercise Price	$ 1.87	$ 2.05
$1.62 to $1.68
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options, Outstanding	75,000
Options Outstanding, Remaining Contractual Life	5 years 6 months 4 days
Options Exercisable	25,002
Options Exercisable, Remaining Contractual Life	5 years 6 months 4 days
Options Exercisable, Weighted Average Exercise Price	$ 1.65
$1.62 to $1.68 | Minimum
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices	1.62
$1.62 to $1.68 | Maximum
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices	1.68
$ 1.80
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices	$ 1.80
Options, Outstanding	295,555
Options Outstanding, Remaining Contractual Life	5 years 1 month 28 days
Options Exercisable	195,555
Options Exercisable, Remaining Contractual Life	5 years 1 month 28 days
Options Exercisable, Weighted Average Exercise Price	$ 1.80
$ 2.05
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices	$ 2.05
Options, Outstanding	100,000
Options Outstanding, Remaining Contractual Life	4 years 11 months 19 days
Options Exercisable	66,670
Options Exercisable, Remaining Contractual Life	4 years 11 months 19 days
Options Exercisable, Weighted Average Exercise Price	$ 2.05
$ 2.09
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices	$ 2.09
Options, Outstanding	10,000
Options Outstanding, Remaining Contractual Life	5 years 6 months 29 days
Options Exercisable	3,333
Options Exercisable, Remaining Contractual Life	5 years 6 months 29 days
Options Exercisable, Weighted Average Exercise Price	$ 2.09
$ 2.75
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices	$ 2.75
Options, Outstanding	25,000
Options Outstanding, Remaining Contractual Life	5 years 9 months 7 days
Options Exercisable	8,333
Options Exercisable, Remaining Contractual Life	5 years 9 months 7 days
Options Exercisable, Weighted Average Exercise Price	$ 2.75
$ 2.94
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices	$ 2.94
Options, Outstanding	75,000
Options Outstanding, Remaining Contractual Life	6 years 6 months 11 days
$ 3.38
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of Exercise Prices	$ 3.38
Options, Outstanding	29,586
Options Outstanding, Remaining Contractual Life	6 years 22 days

STOCK BASED COMPENSATION PLAN89

STOCK BASED COMPENSATION PLANS - Summary of unvested options (Details 5) - Stock options - $ / shares	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Shares
Unvested options, beginning of period	505,553	120,000
Granted	199,586	438,888	120,000
Vested	(298,891)	(33,335)
Forfeited	(95,000)	(20,000)
Unvested options, end of period	311,248	505,553	120,000
Weighted Average Grant Date Fair Value
Options outstanding, beginning of period	$ 1.32	$ 1.49
Granted	1.63	1.30	$ 1.49
Vested	1.31	1.49
Forfeited	1.80	1.49
Options outstanding, end of period	$ 1.39	$ 1.32	$ 1.49

STOCK BASED COMPENSATION PLAN90

STOCK BASED COMPENSATION PLANS - Options outstanding and exercisable (Details 6) - Stock options - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number, Options Outstanding	610,141	538,888	120,000
Number, Exercisable Options	298,893	33,335
Weighted average exercise price, Options Outstanding	$ 1.35	$ 1.33	$ 1.49
Weighted average exercise price, Exercisable Options	$ 1.87	$ 2.05
Aggregate intrinsic value, Options Outstanding	$ 1,341,828	$ 451,177	$ 7,200
Aggregate intrinsic value, Exercisable Options	$ 717,343	$ 21,668
Weighted average contractual term, Options Outstanding	5 years 5 months 1 day	6 years 2 months 16 days	6 years 11 months 19 days
Weighted average contractual term, Exercisable Options	5 years 2 months 1 day	5 years 11 months 19 days
Share price of option outstanding and exercisable as of June 30	$ 4.27	$ 2.70	$ 2.11

STOCK BASED COMPENSATION PLAN91

STOCK BASED COMPENSATION PLANS - Company nonvested common shares (Details 7) - $ / shares	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Shares
Nonvested at June 30	18,604	43,811	97,146
Granted	131,558	155,927	10,000
Vested	(21,664)	(181,134)	(55,001)
Forfeited, Director changes			(3,334)
Forfeited, Employee shares not earned			(5,000)
Nonvested at June 30	128,498	18,604	43,811
Weighted-Average Grant-Date Fair Value
Nonvested at June 30	$ 1.88	$ 1.59	$ 1.52
Granted	3.04	2	2.17
Vested	2.70	1.89	1.62
Forfeited, Director changes			0.94
Forfeited, Employee shares not earned			1.52
Nonvested at June 30	$ 2.97	$ 1.88	$ 1.59

STOCK BASED COMPENSATION PLAN92

STOCK BASED COMPENSATION PLANS (Detail Textuals) - Stock options - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation	$ 338	$ 370
Unrecognized compensation related to stock option grants	$ 167	$ 297

PREFERRED STOCK - Preferred sto

PREFERRED STOCK - Preferred stock liquidation preference (Details) - Series A Preferred Stock - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Class Of Stock [Line Items]
Shares outstanding at $10.00 per share	$ 4,451	$ 4,451
Cumulative unpaid dividends	13,657	12,989
Preferred Stock liquidation preference	$ 18,108	$ 17,440

PREFERRED STOCK (Detail Textual

PREFERRED STOCK (Detail Textuals) - Series A Preferred Stock	12 Months Ended
	Jun. 30, 2016$ / shares
Class of Stock [Line Items]
Preferred stock voting rights	0.194 of a vote
Series A preferred stock annual cumulative dividend price per share (in dollars per share)	$ 1.50
Series A preferred stock, redemption price per share (in dollars per share)	11
Liquidation price to be received by series A preferred stock holder for each outstanding share plus all cumulative unpaid dividends (in dollars per share)	$ 10
Common Stock
Class of Stock [Line Items]
Preferred stock voting rights	0.194
Cumulative unpaid dividends converted into common shares, Convertible price per common share (in dollars per share)	$ 1,000

RETIREMENT PLAN (Detail Textual

RETIREMENT PLAN (Detail Textuals) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Compensation and Retirement Disclosure [Abstract]
Maximum percent of voluntary contribution	100.00%
Description of safe harbor matching contributions plan	Company elected and made a safe harbor matching contributions of 100% of the participant's first 3% and 50% of the next 2% of compensation deferred into the Retirement Plan
Percentage of safe harbor matching contributions for first 3% employee compensation	100.00%	100.00%	100.00%
Percentage of employee compensation eligible for 100% safe harbor matching contributions	3.00%	3.00%	3.00%
Percentage of safe harbor matching contributions for next 2% employee compensation	50.00%	50.00%	50.00%
Percentage of employee compensation eligible for 50% of next safe harbor matching contributions	2.00%	2.00%	2.00%
Company's safe harbor contribution	$ 189	$ 192	$ 168

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Summary of sale of rental equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Rental equipment sold, cost		$ 3,873
Rental equipment sold, accumulated depreciation upon sale		(331)
Rental equipment sold, net book value		3,542
Proceeds from sale		4,994
Gain on sale of rental equipment		$ 1,452

COMMITMENTS AND CONTINGENCIES97

COMMITMENTS AND CONTINGENCIES - Summary of recognized gains (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Commitments And Contingencies Disclosure [Roll Forward]
Beginning balance	$ 1,760	$ 1,142
Gain on sale of rental equipment		1,452
Recognition of deferred gain	(860)	(834)
Ending balance	900	1,760
Less current portion	860	860
Non-current portion of deferred gain	$ 40	$ 900

COMMITMENTS AND CONTINGENCIES98

COMMITMENTS AND CONTINGENCIES - Future minimum lease payments (Details 2) $ in Thousands	Jun. 30, 2016USD ($)
Operating Leases from Sale Leaseback
2017 - Sale Leaseback	$ 2,641
2018 - Sale Leaseback	138
2019 - Sale Leaseback
2020 - Sale Leaseback
2021 - Sale Leaseback
Thereafter - Sale Leaseback
Total minimum lease payments - Sale Leaseback	2,779
Other Operating Leases
2017 - Other Operating Leases	552
2018 - Other Operating Leases	503
2019 - Other Operating Leases	498
2020 - Other Operating Leases	459
2021 - Other Operating Leases	468
Thereafter - Other Operating Leases	963
Total minimum lease payments - Other Operating Leases	3,443
Total Operating Leases
2017 - Operating Leases	3,193
2018 - Operating Leases	641
2019 - Operating Leases	498
2020 - Operating Leases	459
2021 - Operating Leases	468
Thereafter - Operating Leases	963
Total minimum lease payments - Operating Leases	6,222
Capital Leases
2017 - Capital Leases	299
2018 - Capital Leases	236
2019 - Capital Leases	142
2020 - Capital Leases
2021 - Capital Leases
Thereafter - Capital Leases
Total minimum lease payments - Capital Leases	677
Less amount representing interest	72
Present value of net minimum lease payments	605
Less current obligations under capital leases	255
Obligations under capital leases, less current portion	$ 350

COMMITMENTS AND CONTINGENCIES99

COMMITMENTS AND CONTINGENCIES (Detail Textuals) - Third-party finance company - Lease	1 Months Ended	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2016
Commitment And Contingency [Line Items]
Number of sale leaseback agreements	6
Agreement lease term		36-month

COMMITMENTS AND CONTINGENCIE100

COMMITMENTS AND CONTINGENCIES (Detail Textuals 1) $ in Thousands	1 Months Ended
	Apr. 30, 2016USD ($)ft²
Commitments and Contingencies Disclosure [Abstract]
Area of current premises (in square feet) | ft²	17,249
Area of new premises (in square feet) | ft²	17,689
Lease term (in years)	7 years
Rent expense under operating leases	$ 32
Increase monthly base rent	36
Maximum monthly base rent	$ 41
Lease renewal term (in years)	5 years
Straight-lined rent expense	$ 38

COMMITMENTS AND CONTINGENCIE101

COMMITMENTS AND CONTINGENCIES (Detail Textuals 2) - USD ($) $ in Thousands	1 Months Ended		12 Months Ended
	Apr. 30, 2016	Mar. 30, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Commitment And Contingency [Line Items]
Rent expense under operating leases			$ 479	$ 354	$ 372
Straight-lined rent expense	$ 38
Rent expense under operating leases	$ 32
Vendscreen, Inc
Commitment And Contingency [Line Items]
Operating leases, rent expense, minimum rentals			$ 20
Malvern product warehousing facilities | Product warehousing shipping and customer support
Commitment And Contingency [Line Items]
Operating leases, rent expense, minimum rentals		$ 5
Straight-lined rent expense		$ 5

REVISIONS OF PREVIOUSLY REPO102

REVISIONS OF PREVIOUSLY REPORTED CONSOLIDATED FINANCIAL STATEMENTS (Details 1) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Revisions Of Previously Reported Consolidated Financial Statements [Line Items]
Cumulative preferred dividends		$ 334		$ 334		$ 334		$ 334	$ 668	$ 668	$ 668
Net income (loss) applicable to common shares	$ (872)	$ (5,754)	$ (874)	$ 26	$ (200)	$ (901)	$ (261)	$ (395)	$ (7,474)	$ (1,757)	$ 26,863
Net earnings (loss) per common share - basic (in dollars per share)	$ (0.02)	$ (0.16)	$ (0.02)	$ 0	$ (0.01)	$ (0.03)	$ (0.01)	$ (0.01)	$ (0.21)	$ (0.05)	$ 0.77	$ 0.78
Net earnings (loss) per common share - diluted (in dollars per share)	$ (0.02)	$ (0.16)	$ (0.02)	$ 0	$ (0.01)	$ (0.03)	$ (0.01)	$ (0.01)	$ (0.21)	$ (0.05)	$ 0.77
Basic weighted average number of common shares outstanding (in shares)	37,325,681	36,161,626	35,909,933	35,848,395	35,761,370	35,747,979	35,716,848	35,651,732	36,309,047	35,719,211	34,667,769
Diluted weighted average number of common shares outstanding (in shares)	37,325,681	36,161,626	35,909,933	36,487,879	36,206,934	35,747,979	35,716,848	35,651,732	36,309,047	35,719,211	35,009,559
Basic and diluted weighted average number of common shares outstanding (in shares)									36,309,047	35,719,211	34,665,007
As previously reported
Revisions Of Previously Reported Consolidated Financial Statements [Line Items]
Cumulative preferred dividends										$ (664)	$ (664)
Net income (loss) applicable to common shares										$ (1,753)	$ 26,867
Net earnings (loss) per common share - basic (in dollars per share)											$ 0.78
Net earnings (loss) per common share - diluted (in dollars per share)											$ 0.78
Basic weighted average number of common shares outstanding (in shares)											34,613,497
Diluted weighted average number of common shares outstanding (in shares)											34,613,497
Basic and diluted weighted average number of common shares outstanding (in shares)										35,663,386	34,613,497
Adjustment
Revisions Of Previously Reported Consolidated Financial Statements [Line Items]
Cumulative preferred dividends										$ (4)	$ (4)
Net income (loss) applicable to common shares										$ (4)	$ (4)
Net earnings (loss) per common share - basic (in dollars per share)											$ (0.01)
Net earnings (loss) per common share - diluted (in dollars per share)											$ (0.01)
Basic weighted average number of common shares outstanding (in shares)											54,272
Diluted weighted average number of common shares outstanding (in shares)											396,062
Basic and diluted weighted average number of common shares outstanding (in shares)										55,825	51,510

REVISIONS OF PREVIOUSLY REPO103

REVISIONS OF PREVIOUSLY REPORTED CONSOLIDATED FINANCIAL STATEMENTS (Details 2) - shares	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Revisions Of Previously Reported Consolidated Financial Statements [Line Items]
Stock based compensation 2010 Stock Incentive Plan		3,334
Stock based compensation 2011 Stock Incentive Plan
Stock based compensation 2012 Stock Incentive Plan	33,698	158,505
Stock based compensation 2013 Stock Incentive Plan	159,741	55,810
Retirement of common stock	(31,899)	(52,645)
Balance	35,763,663	35,602,123	35,602,123
As previously reported
Revisions Of Previously Reported Consolidated Financial Statements [Line Items]
Stock based compensation 2010 Stock Incentive Plan		6,668
Stock based compensation 2011 Stock Incentive Plan	10,002	51,667
Stock based compensation 2012 Stock Incentive Plan	88,991
Stock based compensation 2013 Stock Incentive Plan	165,463	131,203
Retirement of common stock	(31,899)	(49,311)
Balance	35,747,242	35,514,685	35,514,685
Adjustment
Revisions Of Previously Reported Consolidated Financial Statements [Line Items]
Stock based compensation 2010 Stock Incentive Plan		(3,334)
Stock based compensation 2011 Stock Incentive Plan	(10,002)	(51,667)
Stock based compensation 2012 Stock Incentive Plan	(55,293)	158,505
Stock based compensation 2013 Stock Incentive Plan	(5,722)	(75,393)
Retirement of common stock		(3,334)
Balance	16,421	87,438	87,438

REVISIONS OF PREVIOUSLY REPO104

REVISIONS OF PREVIOUSLY REPORTED CONSOLIDATED FINANCIAL STATEMENTS (Detail Textuals) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Change in Accounting Estimate [Abstract]
Liquidation in preference of preferred stock		$ 85
Net earnings (loss) per common share - basic and diluted (in dollars per share)	$ (0.21)	$ (0.05)	$ 0.77	$ 0.78

UNAUDITED QUARTERLY DATA (Detai

UNAUDITED QUARTERLY DATA (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Quarterly Financial Data [Abstract]
Revenues	$ 21,944	$ 20,361	$ 18,503	$ 16,600	$ 17,645	$ 15,358	$ 12,821	$ 12,253	$ 77,408	$ 58,077	$ 42,345
Gross profit	5,783	5,672	5,483	5,047	4,809	5,146	3,733	3,135	21,985	16,823	15,073
Operating income (loss)	(1,578)	(595)	594	112	(355)	731	51	(667)	(1,467)	(240)	437
Net income (loss)	(872)	(5,420)	(874)	360	(200)	(567)	(261)	(61)	(6,806)	(1,089)	27,531
Cumulative preferred dividends		(334)		(334)		(334)		(334)	(668)	(668)	(668)
Net income (loss) applicable to common shares	$ (872)	$ (5,754)	$ (874)	$ 26	$ (200)	$ (901)	$ (261)	$ (395)	$ (7,474)	$ (1,757)	$ 26,863
Net earnings (loss) per common share:
Basic (in dollars per share)	$ (0.02)	$ (0.16)	$ (0.02)	$ 0	$ (0.01)	$ (0.03)	$ (0.01)	$ (0.01)	$ (0.21)	$ (0.05)	$ 0.77	$ 0.78
Diluted (in dollars per share)	$ (0.02)	$ (0.16)	$ (0.02)	$ 0	$ (0.01)	$ (0.03)	$ (0.01)	$ (0.01)	$ (0.21)	$ (0.05)	$ 0.77
Weighted average number of common shares outstanding:
Basic (in shares)	37,325,681	36,161,626	35,909,933	35,848,395	35,761,370	35,747,979	35,716,848	35,651,732	36,309,047	35,719,211	34,667,769
Diluted (in shares)	37,325,681	36,161,626	35,909,933	36,487,879	36,206,934	35,747,979	35,716,848	35,651,732	36,309,047	35,719,211	35,009,559

VALUATION AND QUALIFYING ACC106

VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
ACCOUNTS RECEIVABLE
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	$ 1,309	$ 63	$ 18
Additions charged to earnings	1,576	1,409	94
Deductions uncollectible receivables written off, net of recoveries	71	163	49
Balance at end of period	2,814	1,309	63
INVENTORY
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	944	765	727
Additions charged to earnings	943	551	164
Deductions uncollectible receivables written off, net of recoveries	590	372	126
Balance at end of period	$ 1,297	$ 944	$ 765