Cover Page
Cover Page - shares | 9 Months Ended | |
Mar. 31, 2020 | Jun. 18, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-33365 | |
Entity Registrant Name | USA Technologies, Inc. | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 23-2679963 | |
Entity Address, Address Line One | 100 Deerfield Lane, | |
Entity Address, Address Line Two | Suite 300, | |
Entity Address, City or Town | Malvern, | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19355 | |
City Area Code | 610 | |
Local Phone Number | 989-0340 | |
Document Fiscal Year Focus | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 64,557,336 | |
Entity Central Index Key | 0000896429 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --06-30 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 25,894 | $ 27,464 |
Accounts receivable, less allowance of $6,952 and $4,866, respectively | 18,418 | 21,906 |
Finance receivables, net | 7,941 | 6,727 |
Inventory, net | 9,577 | 11,273 |
Prepaid expenses and other current assets | 2,319 | 1,558 |
Total current assets | 64,149 | 68,928 |
Non-current assets: | ||
Finance receivables due after one year, net | 11,541 | 12,642 |
Other assets | 2,075 | 2,099 |
Property and equipment, net | 8,293 | 9,590 |
Operating lease right-of-use assets | 5,903 | 0 |
Intangibles, net | 23,818 | 26,171 |
Goodwill | 63,945 | 63,945 |
Total non-current assets | 115,575 | 114,447 |
Total assets | 179,724 | 183,375 |
Current liabilities: | ||
Accounts payable | 24,592 | 27,584 |
Accrued expenses | 27,533 | 23,351 |
Finance lease obligations and current obligations under long-term debt | 381 | 12,497 |
Income taxes payable | 168 | 254 |
Deferred revenue | 1,621 | 1,681 |
Total current liabilities | 54,295 | 65,367 |
Long-term liabilities: | ||
Deferred income taxes | 86 | 71 |
Finance lease obligations and long-term debt, less current portion | 12,297 | 276 |
Operating lease liabilities, non-current | 5,025 | 0 |
Accrued expenses, less current portion | 450 | 100 |
Total long-term liabilities | 17,858 | 447 |
Total liabilities | 72,153 | 65,814 |
Commitments and contingencies | ||
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preferences of $20,778 and $20,111 at March 31, 2020 and June 30, 2019, respectively | 3,138 | 3,138 |
Shareholders’ equity: | ||
Preferred stock, no par value, 1,800,000 shares authorized, no shares issued | 0 | 0 |
Common stock, no par value, 640,000,000 shares authorized, 64,448,957 and 60,008,481 shares issued and outstanding at March 31, 2020 and June 30, 2019, respectively | 396,044 | 376,853 |
Accumulated deficit | (291,611) | (262,430) |
Total shareholders’ equity | 104,433 | 114,423 |
Total liabilities, convertible preferred stock and shareholders’ equity | $ 179,724 | $ 183,375 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for uncollectible accounts receivable | $ 6,952 | $ 4,866 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 1,800,000 | 1,800,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 640,000,000 | 640,000,000 |
Common stock, shares issued (in shares) | 64,448,957 | 60,008,481 |
Common stock, shares outstanding (in shares) | 64,448,957 | 60,008,481 |
Convertible preferred stock, shares authorized (in shares) | 900,000 | 900,000 |
Convertible preferred stock, shares issued (in shares) | 445,063 | 445,063 |
Convertible preferred stock, shares outstanding (in shares) | 445,063 | 445,063 |
Convertible preferred stock, liquidation preference | $ 20,778 | $ 20,111 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue | $ 43,098 | $ 37,704 | $ 130,508 | $ 105,958 |
Costs of sales | 32,100 | 27,751 | 95,332 | 75,512 |
Gross profit | 10,998 | 9,953 | 35,176 | 30,446 |
Operating expenses: | ||||
Selling, general and administrative | 20,069 | 11,156 | 56,876 | 31,537 |
Investigation and restatement expenses | 0 | 1,408 | 4,303 | 13,122 |
Integration and acquisition costs | 0 | 24 | 0 | 1,127 |
Depreciation and amortization | 1,107 | 1,083 | 3,209 | 3,359 |
Total operating expenses | 21,176 | 13,671 | 64,388 | 49,145 |
Operating loss | (10,178) | (3,718) | (29,212) | (18,699) |
Other income (expense): | ||||
Interest income | 411 | 348 | 988 | 1,245 |
Interest expense | (683) | (913) | (1,981) | (2,518) |
Change in fair value of derivative | 1,070 | 0 | 1,070 | 0 |
Total other income (expense), net | 798 | (565) | 77 | (1,273) |
Loss before income taxes | (9,380) | (4,283) | (29,135) | (19,972) |
Benefit (provision) for income taxes | 85 | (23) | (46) | (60) |
Net loss | (9,295) | (4,306) | (29,181) | (20,032) |
Preferred dividends | (334) | (334) | (668) | (668) |
Net loss applicable to common shares | $ (9,629) | $ (4,640) | $ (29,849) | $ (20,700) |
Net loss per common share | ||||
Basic (in dollars per share) | $ (0.15) | $ (0.08) | $ (0.48) | $ (0.34) |
Diluted (in dollars per share) | $ (0.15) | $ (0.08) | $ (0.48) | $ (0.34) |
Weighted average number of common shares outstanding | ||||
Basic (in shares) | 64,096,778 | 60,065,053 | 62,591,947 | 60,059,594 |
Diluted (in shares) | 64,096,778 | 60,065,053 | 62,591,947 | 60,059,594 |
Service | ||||
Revenue | $ 34,961 | $ 31,515 | $ 105,324 | $ 89,919 |
Costs of sales | 22,244 | 20,307 | 66,912 | 58,141 |
Product | ||||
Revenue | 8,137 | 6,189 | 25,184 | 16,039 |
Costs of sales | $ 9,856 | $ 7,444 | $ 28,420 | $ 17,371 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Accumulated Deficit |
Balance (in shares) at Jun. 30, 2018 | 59,998,811 | ||
Balance at Jun. 30, 2018 | $ 142,688 | $ 375,436 | $ (232,748) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Stock based compensation (in shares) | 13,344 | ||
Stock based compensation | 370 | $ 370 | |
Net loss | (5,288) | (5,288) | |
Balance (in shares) at Sep. 30, 2018 | 60,012,155 | ||
Balance at Sep. 30, 2018 | 137,970 | $ 375,806 | (237,836) |
Balance (in shares) at Jun. 30, 2018 | 59,998,811 | ||
Balance at Jun. 30, 2018 | 142,688 | $ 375,436 | (232,748) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net loss | (20,032) | ||
Balance (in shares) at Mar. 31, 2019 | 60,019,438 | ||
Balance at Mar. 31, 2019 | 124,120 | $ 376,700 | (252,580) |
Balance (in shares) at Sep. 30, 2018 | 60,012,155 | ||
Balance at Sep. 30, 2018 | 137,970 | $ 375,806 | (237,836) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Stock based compensation (in shares) | 1,563 | ||
Stock based compensation | 557 | $ 557 | |
Net loss | (10,438) | (10,438) | |
Balance (in shares) at Dec. 31, 2018 | 60,013,718 | ||
Balance at Dec. 31, 2018 | 128,089 | $ 376,363 | (248,274) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Stock based compensation (in shares) | 5,720 | ||
Stock based compensation | 337 | $ 337 | |
Net loss | (4,306) | (4,306) | |
Balance (in shares) at Mar. 31, 2019 | 60,019,438 | ||
Balance at Mar. 31, 2019 | 124,120 | $ 376,700 | (252,580) |
Balance (in shares) at Jun. 30, 2019 | 60,008,481 | ||
Balance at Jun. 30, 2019 | 114,423 | $ 376,853 | (262,430) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Stock based compensation | 290 | $ 290 | |
Net loss | (11,508) | (11,508) | |
Balance (in shares) at Sep. 30, 2019 | 60,008,481 | ||
Balance at Sep. 30, 2019 | 103,205 | $ 377,143 | (273,938) |
Balance (in shares) at Jun. 30, 2019 | 60,008,481 | ||
Balance at Jun. 30, 2019 | 114,423 | $ 376,853 | (262,430) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Net loss | (29,181) | ||
Balance (in shares) at Mar. 31, 2020 | 64,448,957 | ||
Balance at Mar. 31, 2020 | 104,433 | $ 396,044 | (291,611) |
Balance (in shares) at Sep. 30, 2019 | 60,008,481 | ||
Balance at Sep. 30, 2019 | 103,205 | $ 377,143 | (273,938) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Issuance of common stock in relation to private placement (in shares) | 3,800,000 | ||
Issuance of common stock in relation to private placement, net of offering costs incurred of $1,102 | 16,777 | $ 16,777 | |
Stock based compensation (in shares) | 362,941 | ||
Stock based compensation | 1,742 | $ 1,742 | |
Net loss | (8,378) | (8,378) | |
Balance (in shares) at Dec. 31, 2019 | 64,171,422 | ||
Balance at Dec. 31, 2019 | 113,346 | $ 395,662 | (282,316) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Stock based compensation (in shares) | 277,535 | ||
Stock based compensation | 382 | $ 382 | |
Net loss | (9,295) | (9,295) | |
Balance (in shares) at Mar. 31, 2020 | 64,448,957 | ||
Balance at Mar. 31, 2020 | $ 104,433 | $ 396,044 | $ (291,611) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) $ in Thousands | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Issuance of common stock in relation to private placement, offering costs incurred | $ 1,102 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
OPERATING ACTIVITIES: | ||
Net loss | $ (29,181) | $ (20,032) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||
Non-cash stock based compensation | 2,453 | 1,393 |
Loss (gain) on disposal of property and equipment | 88 | (39) |
Non-cash interest and amortization of debt discount | 1,040 | 286 |
Bad debt expense | 1,400 | 1,537 |
Provision for inventory reserve | (434) | 2,699 |
Depreciation and amortization | 5,193 | 5,899 |
Non-cash lease expense | 1,398 | 0 |
Deferred income taxes | 15 | 14 |
Change in fair value of derivative | (1,070) | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 2,088 | (6,288) |
Finance receivables | (113) | (182) |
Inventory | 2,204 | (5,349) |
Prepaid expenses and other assets | (1,045) | (1,545) |
Accounts payable and accrued expenses | (414) | (3,836) |
Operating lease liabilities | (1,102) | 0 |
Deferred revenue | (60) | (316) |
Income taxes payable | (86) | 42 |
Net cash used in operating activities | (17,626) | (25,717) |
INVESTING ACTIVITIES: | ||
Purchase of property and equipment, including rentals | (1,711) | (3,156) |
Proceeds from sale of property and equipment, including rentals | 33 | 103 |
Net cash used in investing activities | (1,678) | (3,053) |
FINANCING ACTIVITIES: | ||
Proceeds from long-term debt issuance by Antara | 14,248 | 0 |
Proceeds from equity issuance by Antara | 17,879 | 0 |
Repayment of revolving credit facility | (10,000) | 0 |
Repayment of finance lease obligations and long-term debt | (2,413) | (22,313) |
Payment of debt and equity issuance costs | (1,980) | (135) |
Proceeds from exercise of common stock options | 0 | 42 |
Net cash provided by (used in) financing activities | 17,734 | (22,406) |
Net (decrease) increase in cash and cash equivalents | (1,570) | (51,176) |
Cash and cash equivalents at beginning of year | 27,464 | 83,964 |
Cash and cash equivalents at end of period | 25,894 | 32,788 |
Supplemental disclosures of cash flow information: | ||
Interest paid in cash | 940 | 2,321 |
Income taxes paid in cash | 25 | 12 |
Supplemental disclosures of noncash financing and investing activities: | ||
Equipment and software acquired under finance lease | $ 0 | $ 5 |
BUSINESS
BUSINESS | 9 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BUSINESS | BUSINESS The Company 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 and consumer engagement services primarily within the unattended Point of Sale (“POS”) market. We are a leading provider in the small ticket, beverage and food vending industry in the United States 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 and IoT 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. The connection to the ePort Connect platform also enables consumer loyalty programs, national rewards programs and digital content, including advertisements and product information to be delivered at the point of sale. On November 9, 2017, the Company acquired all of the outstanding equity interests of Cantaloupe Systems, Inc. (“Cantaloupe”), pursuant to the Agreement and Plan of Merger (“Merger Agreement”). Cantaloupe is a premier provider of cloud and mobile solutions for vending, micro markets, and office coffee service. The acquisition expanded the Company’s existing platform to become an end-to-end enterprise platform integrating Cantaloupe’s Seed Cloud which provides cloud and mobile solutions for dynamic route scheduling, automated pre-kitting, responsive merchandising, inventory management, warehouse and accounting management, as well as cashless vending. The combined companies complete the value chain for customers by providing both top-line revenue generating services as well as bottom line business efficiency services to help operators of unattended retail machines run their business better. The combined product offering provides the data-rich Seed system with USAT’s consumer benefits, providing operators with valuable consumer data that results in customized experiences. In addition to new technology and services, due to Cantaloupe’s existing customer base, the acquisition expands the Company’s footprint into new global markets. INTERIM FINANCIAL INFORMATION The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements and therefore should be read in conjunction with the Company’s June 30, 2019 Annual Report on Form 10-K. In the opinion of management, all adjustments considered necessary for a fair presentation, consisting of normal recurring adjustments, have been included. Operating results for the three and nine months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending June 30, 2020 . The balance sheet at June 30, 2019 has been derived from the audited consolidated financial statements at that date, but does not include all disclosures required by accounting principles generally accepted in the United States of America. In connection with the preparation of the condensed consolidated financial statements for the three months ended December 31, 2019, the Company identified certain adjustments that are required to be made to its fiscal year 2019 interim and annual financial statements. As a result, the Company has revised in this filing certain prior year interim and annual amounts in its condensed consolidated balance sheets, statements of operations and statements of cash flows and related disclosures. Such adjustments resulted in a $0.2 million decrease in net loss for the three months ended March 31, 2019 and a $1.5 million decrease in net loss for the nine months ended March 31, 2019 . The Company does not believe these adjustments are material to the previously issued financial statements. A novel strain of coronavirus (COVID-19) was first identified in China in December 2019 and subsequently declared a global pandemic in March 2020 by the World Health Organization. COVID-19 containment measures began in parts of the United States in March 2020 resulting in forced closure of non-essential businesses and social distancing protocols. The effects of COVID-19 are not significant to our financial statements for the quarter ended March 31, 2020. Further disclosure around the impact of COVID-19 as a subsequent event is discussed in Note 14. LIQUIDITY At June 30, 2019, the Company had $27.5 million in cash and a working capital surplus of $3.6 million . As of June 30, 2019, the Company was not in compliance with the fixed charge coverage ratio and the total leverage ratio of its Revolving Credit Facility and Term Loan, which represented an event of default under the credit agreement. As a result, the Company classified all amounts outstanding ( $11.5 million ) under these credit facilities as current liabilities. In response to its need to develop a cash management strategy, the Company developed a plan that included potentially seeking to extend the credit borrowings to beyond one year, securing a commitment for the sale of its long-term receivables, and obtaining outside financing. Pursuant to a Stock Purchase Agreement dated October 9, 2019 (“SPA”) between the Company and Antara Capital Master Fund LP (“Antara”), the Company sold to Antara 3,800,000 shares of the Company’s common stock at a price of $5.25 per share for gross proceeds of $19,950,000 . Antara qualifies as an accredited investor under Rule 501 of the Securities Act of 1933, as amended (the "Act"), and the offer and sale of the shares was exempt from registration under Section 4(a)(2) of the Act. Antara agreed not to dispose of the shares for a period of 90 days from the closing date. In connection with the private placement, William Blair & Company, L.L.C. (“Blair”) acted as exclusive placement agent for the Company and received a cash placement fee of $1.2 million . On October 9, 2019, the Company also entered into a commitment letter (“Commitment Letter”) with Antara, pursuant to which Antara committed to extend to the Company a $30.0 million senior secured term loan facility (“Term Facility”). Upon the execution of the Commitment Letter, the Company paid to Antara a non-refundable commitment fee of $1.2 million . In connection with the Commitment Letter, Blair acted as exclusive placement agent for the Company and received a cash placement fee of $750,000 . On October 31, 2019, the Company entered into a Financing Agreement with Antara to draw $15.0 million on the Term Facility and agreed to draw an additional $15.0 million at any time between July 31, 2020 and April 30, 2021, subject to the terms of the Financing Agreement. The outstanding amount of the draws under the Term Facility bear interest at 9.75% per annum, payable monthly in arrears. The proceeds of the initial draw were used to repay the outstanding balance of the revolving line of credit loan due to JPMorgan Chase Bank, N.A. in the amount of $10.1 million , including accrued interest payable, and to pay transaction expenses, and the Company intends to utilize the balance for working capital and general corporate purposes. The Commitment Letter provides that the outstanding principal amount of the loan must be paid in full by no later than the maturity date of October 31, 2024; and that the Company is required to be in compliance with financial covenants related to the minimum fixed charge coverage ratio beginning with the fiscal quarter ending June 30, 2020, maximum capital expenditures beginning with the fiscal quarter ending December 31, 2019, and minimum consolidated EBITDA beginning with the fiscal year ending June 30, 2020. The Company is evaluating its options with respect to the Financing Agreement, including all rights and remedies that may be available to it. Based upon the current financial forecast for the fourth quarter of fiscal year 2020, without a refinancing or modification of existing terms within the Term Facility, the Company anticipates that as of June 30, 2020, it is highly likely the Company will not be in compliance with the minimum fixed charge coverage ratio and the minimum consolidated EBITDA of its Term Facility. Unless the Commitment Letter is rescinded, amended, or replaced, noncompliance would represent an event of default under the Term Facility, and, following the request of the Required Lenders (as such term is defined in the Term Facility), all unpaid principal of $15.0 million and accrued interest to Antara would immediately become due, in addition to a $0.8 million prepayment premium. In addition, all of the Company's unamortized issuance costs and debt discount related to the Term Facility would be recognized upon repayment of the loan as interest expense in the period of repayment, which as of March 31, 2020 was $2.7 million . As of June 30, 2019 the Company disclosed potential sales tax and related interest liabilities, which the Company estimated to be $18.2 million in the aggregate as of March 31, 2020. The Company has since engaged additional advisors to help evaluate such potential liabilities and the amount and timing of any such payments. During the three months ended March 31, 2020, the Company reached a settlement of a shareholder class action lawsuit pending in federal court. On May 29, 2020, the parties filed documents with the Court seeking preliminary approval of the settlement, and on June 9, 2020, the Court granted preliminary approval of the settlement and issued a scheduling order for further action on the settlement. The Company anticipates the payment of approximately $2.6 million toward that settlement in addition to amounts to be paid by the Company’s insurers. As discussed in Note 13, those amounts are contingent upon certain future events, but are expected to be paid during the next 12 months. The Company is currently evaluating a variety of financing alternatives, including but not limited to negotiating modifications to the existing Term Facility. The Company has received a communication from an investor that it will provide sufficient financing in the event that the Company and Antara fail to agree to modifications to the existing Term Facility and other financing alternatives are not in place. The Company believes that its current financial resources, together with cash generated by operations and the financing available from the investor, if needed, will be sufficient to fund its current twelve-month operating budget from the date of issuance of these consolidated financial statements, alleviating any substantial doubt raised by the potential breach in our Term Facility with Antara. |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 9 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
ACCOUNTING POLICIES | ACCOUNTING POLICIES RECENT ACCOUNTING PRONOUNCEMENTS Accounting pronouncements adopted In February 2016, the FASB issued ASU 2016-02, Leases, which requires, among other items, lessees to recognize a right of use asset and a related lease liability for most leases on the balance sheet. Lessees and lessors are required to disclose quantitative and qualitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period and requires a modified retrospective application, with early adoption permitted. The Company adopted this new guidance on July 1, 2019, using the optional modified retrospective transition method applying the guidance to leases existing as of the effective date. The Company has determined that there was no cumulative effect adjustment to beginning retained earnings on the consolidated balance sheet. We will continue to report periods prior to July 1, 2019 in our financial statements under prior guidance as outlined in Topic 840. The Company’s adoption of ASU No. 2016-02 resulted in an increase in the Company’s assets and liabilities of approximately $3.9 million at July 1, 2019. The Company’s adoption of ASU No. 2016-02 did not have a material impact to the Company’s consolidated statements of operations or its consolidated statements of cash flows. Further, there was no impact on the Company’s covenant compliance under its current debt agreements as a result of the adoption of ASU No. 2016-02. The Company elected the package of practical expedients included in this guidance, which allowed it to not reassess: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and, (iii) the initial direct costs for existing leases. From a lessee perspective, the Company elected the practical expedient related to treating lease and non-lease components as a single lease component for all leases as well as electing a policy exclusion permitting leases with an original lease term of less than one year to be excluded from the Right-of-Use (“ROU”) assets and lease liabilities. From a lessor perspective, the Company also elected the practical expedient related to treating lease and non-lease components as a single component for those leases where the timing and pattern of transfer for the non-lease component and associated lease component are the same and the stand-alone lease component would be classified as an operating lease if accounted for separately. The combined component is then accounted for under Topic 606 or Topic 842 depending on the predominant characteristic of the combined component. In June 2018, the FASB issued ASU No. 2018-07, “Compensation - Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting.” The standard simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under the ASU, most of the guidance on such payments to nonemployees would be aligned with the requirements for share-based payments granted to employees. The Company adopted this ASU on July 1, 2019, and its adoption did not have a material effect on the Company’s condensed consolidated financial statements. In July 2018, the FASB issued ASU No. 2018-09, “Codification Improvements”. These amendments provide clarifications and corrections to certain Accounting Standards Codification (“ASC”) subtopics including “Compensation - Stock Compensation - Income Taxes” (Topic 718-740), “Business Combinations - Income Taxes” (Topic 805-740) and “Fair Value Measurement - Overall” (Topic 820-10). The Company adopted this ASU on July 1, 2019, and its adoption did not have a material effect on the Company’s condensed consolidated financial statements. Accounting pronouncements to be adopted 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 condensed consolidated financial position, results of operations or cash flows. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326).” The new guidance changes the accounting for estimated credit losses pertaining to certain types of financial instruments including, but not limited to, trade and lease receivables. This pronouncement will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently evaluating and assessing the impact this guidance will have on its condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, “Intangibles—Goodwill and Other (Topic 350): Internal-Use Software.” This standard aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, which means that it will be effective for us in the first quarter of our fiscal year beginning July 1, 2020. The Company expects that the adoption of this ASU will not have a material impact on the Company’s condensed consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” ASU 2019-12 is intended to simplify accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and amends existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. The Company is currently evaluating and assessing the impact this guidance will have on its condensed consolidated financial statements. |
LEASES
LEASES | 9 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
LEASES | LEASES Lessee Accounting The Company determines if an arrangement is a lease at inception. The Company has operating and finance leases for office space, warehouses, automobiles and office equipment. USAT’s leases have lease terms of one year to eight years and some include options to extend and/or terminate the lease. The exercise of lease renewal options is at the Company’s sole discretion. When deemed reasonably certain of exercise, the renewal options are included in the determination of the lease term. The Company’s lease agreements do not contain any material variable lease payments, material residual value guarantees or any material restrictive covenants. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date of the lease based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate, which is the collateralized rate of interest that we would pay to borrow over a similar term an amount equal to the lease payments, based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. USAT has lease agreements with lease and non-lease components, which are accounted for together as a single lease component. Lease expense for operating lease payments are recognized on a straight-line basis over the lease term. Variable lease payments that are not based on an index or that result from changes to an index subsequent to the initial measurement of the corresponding lease liability are not included in the measurement of lease ROU assets or liabilities and instead are recognized in earnings in the period in which the obligation for those payments is incurred. At March 31, 2020 , the Company has the following balances recorded in the balance sheet related to its lease arrangements: ($ in thousands) Classification As of March 31, 2020 Assets Operating leases Operating lease right-of-use assets $ 5,903 Finance leases Property and equipment, net 73 Liabilities Current: Operating leases Accrued expenses 1,082 Finance leases Finance lease obligations and current obligations under long-term debt 55 Non-current: Operating leases Operating lease liabilities, non-current 5,025 Finance leases Finance lease obligations and long-term debt, less current portion $ 24 Components of lease cost are as follows: ($ in thousands) Three months ended March 31, 2020 Nine months ended March 31, 2020 Finance lease costs: Amortization of ROU assets $ 25 $ 79 Interest on lease assets 3 8 Operating lease costs* 515 1,970 Total $ 543 $ 2,057 * Includes short-term lease and variable lease costs, which are not material. Supplemental cash flow information and non-cash activity related to our leases are as follows: ($ in thousands) Nine months ended March 31, 2020 Supplemental cash flow information: Cash paid for amounts included in the measurement of lease liabilities Financing cash flows from finance leases $ 73 Operating cash flows from finance leases 9 Operating cash flows from operating leases 1,350 Non-cash activity Right-of-use assets obtained in exchange for lease obligations: Finance lease liabilities 12 Operating lease liabilities $ 3,384 Weighted-average remaining lease term and discount rate for our leases are as follows: Nine months ended March 31, 2020 Weighted-average remaining lease term (years) Finance leases 1.4 Operating leases 5.4 Weighted-average discount rate Finance leases 9.9 % Operating leases 6.8 % Maturities of lease liabilities by fiscal year for our leases are as follows: ($ in thousands) Operating Leases Finance Leases Remainder of 2020 $ 384 $ 27 2021 1,440 46 2022 1,461 16 2023 1,493 2 2024 1,030 1 Thereafter 1,520 — Total lease payments $ 7,328 $ 92 Less: Imputed interest (1,221 ) (13 ) Present value of lease liabilities $ 6,107 $ 79 The Company's future minimum lease commitments as of June 30, 2019, under ASC Topic 840, the predecessor to Topic 842, are as follows: ($ in thousands) Operating Leases Capital Leases 2020 $ 1,326 $ 106 2021 1,151 34 2022 1,180 12 2023 1,208 1 2024 859 1 Thereafter 1,550 — Total minimum lease payments $ 7,274 $ 154 Less: interest (14 ) Present value of minimum lease payments, net 140 Less: current obligations under capital leases (106 ) Obligations under capital leases, noncurrent $ 34 Lessor Accounting Lessor accounting remained substantially unchanged with the adoption of ASC Topic 842. The Company offers its customers financing for the lease of our POS electronic payment devices. We account for these transactions as sales-type leases. Our sales-type leases generally have a non-cancellable term of 60 months . Certain leases contain an end-of-term purchase option that is generally insignificant and is reasonably certain to be exercised by the lessee. Leases that do not meet the criteria for sales-type lease accounting are accounted for as operating leases, typically our JumpStart program leases. JumpStart terms are typically 36 months and are cancellable with 30 to 60 days' written notice. As discussed in Note 2 , the Company has elected to combine lease and non-lease components for its operating leases and account for the combined components under ASC 606, which is the predominant characteristic of the combined components. All QuickStart leases are sales-type and do not qualify for the election. Lessor consideration is allocated between lease components and the non-lease components using the requirements under ASC 606. Revenue from sales-type leases is recognized upon shipment to the customer and the interest portion is deferred and recognized as earned. The revenues related to the sales-type leases are included in Equipment sales in the Consolidated Statements of Operations and a portion of the lease payments as interest income. Revenue from operating leases is recognized ratably over the applicable service period with service fee revenue related to the leases included in License and transaction fees in the Consolidated Statements of Operations. Property and equipment used for the operating lease rental program consisted of the following: ($ in thousands) March 31, June 30, Cost $ 32,572 36,190 Accumulated depreciation (27,664 ) (30,473 ) Net $ 4,908 $ 5,717 The Company’s net investment in sales-type leases (carrying value of lease receivables) and the future minimum amounts to be collected on these lease receivables as of March 31, 2020 are disclosed within Note 6 - Finance Receivables. |
LEASES | LEASES Lessee Accounting The Company determines if an arrangement is a lease at inception. The Company has operating and finance leases for office space, warehouses, automobiles and office equipment. USAT’s leases have lease terms of one year to eight years and some include options to extend and/or terminate the lease. The exercise of lease renewal options is at the Company’s sole discretion. When deemed reasonably certain of exercise, the renewal options are included in the determination of the lease term. The Company’s lease agreements do not contain any material variable lease payments, material residual value guarantees or any material restrictive covenants. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date of the lease based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate, which is the collateralized rate of interest that we would pay to borrow over a similar term an amount equal to the lease payments, based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. USAT has lease agreements with lease and non-lease components, which are accounted for together as a single lease component. Lease expense for operating lease payments are recognized on a straight-line basis over the lease term. Variable lease payments that are not based on an index or that result from changes to an index subsequent to the initial measurement of the corresponding lease liability are not included in the measurement of lease ROU assets or liabilities and instead are recognized in earnings in the period in which the obligation for those payments is incurred. At March 31, 2020 , the Company has the following balances recorded in the balance sheet related to its lease arrangements: ($ in thousands) Classification As of March 31, 2020 Assets Operating leases Operating lease right-of-use assets $ 5,903 Finance leases Property and equipment, net 73 Liabilities Current: Operating leases Accrued expenses 1,082 Finance leases Finance lease obligations and current obligations under long-term debt 55 Non-current: Operating leases Operating lease liabilities, non-current 5,025 Finance leases Finance lease obligations and long-term debt, less current portion $ 24 Components of lease cost are as follows: ($ in thousands) Three months ended March 31, 2020 Nine months ended March 31, 2020 Finance lease costs: Amortization of ROU assets $ 25 $ 79 Interest on lease assets 3 8 Operating lease costs* 515 1,970 Total $ 543 $ 2,057 * Includes short-term lease and variable lease costs, which are not material. Supplemental cash flow information and non-cash activity related to our leases are as follows: ($ in thousands) Nine months ended March 31, 2020 Supplemental cash flow information: Cash paid for amounts included in the measurement of lease liabilities Financing cash flows from finance leases $ 73 Operating cash flows from finance leases 9 Operating cash flows from operating leases 1,350 Non-cash activity Right-of-use assets obtained in exchange for lease obligations: Finance lease liabilities 12 Operating lease liabilities $ 3,384 Weighted-average remaining lease term and discount rate for our leases are as follows: Nine months ended March 31, 2020 Weighted-average remaining lease term (years) Finance leases 1.4 Operating leases 5.4 Weighted-average discount rate Finance leases 9.9 % Operating leases 6.8 % Maturities of lease liabilities by fiscal year for our leases are as follows: ($ in thousands) Operating Leases Finance Leases Remainder of 2020 $ 384 $ 27 2021 1,440 46 2022 1,461 16 2023 1,493 2 2024 1,030 1 Thereafter 1,520 — Total lease payments $ 7,328 $ 92 Less: Imputed interest (1,221 ) (13 ) Present value of lease liabilities $ 6,107 $ 79 The Company's future minimum lease commitments as of June 30, 2019, under ASC Topic 840, the predecessor to Topic 842, are as follows: ($ in thousands) Operating Leases Capital Leases 2020 $ 1,326 $ 106 2021 1,151 34 2022 1,180 12 2023 1,208 1 2024 859 1 Thereafter 1,550 — Total minimum lease payments $ 7,274 $ 154 Less: interest (14 ) Present value of minimum lease payments, net 140 Less: current obligations under capital leases (106 ) Obligations under capital leases, noncurrent $ 34 Lessor Accounting Lessor accounting remained substantially unchanged with the adoption of ASC Topic 842. The Company offers its customers financing for the lease of our POS electronic payment devices. We account for these transactions as sales-type leases. Our sales-type leases generally have a non-cancellable term of 60 months . Certain leases contain an end-of-term purchase option that is generally insignificant and is reasonably certain to be exercised by the lessee. Leases that do not meet the criteria for sales-type lease accounting are accounted for as operating leases, typically our JumpStart program leases. JumpStart terms are typically 36 months and are cancellable with 30 to 60 days' written notice. As discussed in Note 2 , the Company has elected to combine lease and non-lease components for its operating leases and account for the combined components under ASC 606, which is the predominant characteristic of the combined components. All QuickStart leases are sales-type and do not qualify for the election. Lessor consideration is allocated between lease components and the non-lease components using the requirements under ASC 606. Revenue from sales-type leases is recognized upon shipment to the customer and the interest portion is deferred and recognized as earned. The revenues related to the sales-type leases are included in Equipment sales in the Consolidated Statements of Operations and a portion of the lease payments as interest income. Revenue from operating leases is recognized ratably over the applicable service period with service fee revenue related to the leases included in License and transaction fees in the Consolidated Statements of Operations. Property and equipment used for the operating lease rental program consisted of the following: ($ in thousands) March 31, June 30, Cost $ 32,572 36,190 Accumulated depreciation (27,664 ) (30,473 ) Net $ 4,908 $ 5,717 The Company’s net investment in sales-type leases (carrying value of lease receivables) and the future minimum amounts to be collected on these lease receivables as of March 31, 2020 are disclosed within Note 6 - Finance Receivables. |
LEASES | LEASES Lessee Accounting The Company determines if an arrangement is a lease at inception. The Company has operating and finance leases for office space, warehouses, automobiles and office equipment. USAT’s leases have lease terms of one year to eight years and some include options to extend and/or terminate the lease. The exercise of lease renewal options is at the Company’s sole discretion. When deemed reasonably certain of exercise, the renewal options are included in the determination of the lease term. The Company’s lease agreements do not contain any material variable lease payments, material residual value guarantees or any material restrictive covenants. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date of the lease based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate, which is the collateralized rate of interest that we would pay to borrow over a similar term an amount equal to the lease payments, based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. USAT has lease agreements with lease and non-lease components, which are accounted for together as a single lease component. Lease expense for operating lease payments are recognized on a straight-line basis over the lease term. Variable lease payments that are not based on an index or that result from changes to an index subsequent to the initial measurement of the corresponding lease liability are not included in the measurement of lease ROU assets or liabilities and instead are recognized in earnings in the period in which the obligation for those payments is incurred. At March 31, 2020 , the Company has the following balances recorded in the balance sheet related to its lease arrangements: ($ in thousands) Classification As of March 31, 2020 Assets Operating leases Operating lease right-of-use assets $ 5,903 Finance leases Property and equipment, net 73 Liabilities Current: Operating leases Accrued expenses 1,082 Finance leases Finance lease obligations and current obligations under long-term debt 55 Non-current: Operating leases Operating lease liabilities, non-current 5,025 Finance leases Finance lease obligations and long-term debt, less current portion $ 24 Components of lease cost are as follows: ($ in thousands) Three months ended March 31, 2020 Nine months ended March 31, 2020 Finance lease costs: Amortization of ROU assets $ 25 $ 79 Interest on lease assets 3 8 Operating lease costs* 515 1,970 Total $ 543 $ 2,057 * Includes short-term lease and variable lease costs, which are not material. Supplemental cash flow information and non-cash activity related to our leases are as follows: ($ in thousands) Nine months ended March 31, 2020 Supplemental cash flow information: Cash paid for amounts included in the measurement of lease liabilities Financing cash flows from finance leases $ 73 Operating cash flows from finance leases 9 Operating cash flows from operating leases 1,350 Non-cash activity Right-of-use assets obtained in exchange for lease obligations: Finance lease liabilities 12 Operating lease liabilities $ 3,384 Weighted-average remaining lease term and discount rate for our leases are as follows: Nine months ended March 31, 2020 Weighted-average remaining lease term (years) Finance leases 1.4 Operating leases 5.4 Weighted-average discount rate Finance leases 9.9 % Operating leases 6.8 % Maturities of lease liabilities by fiscal year for our leases are as follows: ($ in thousands) Operating Leases Finance Leases Remainder of 2020 $ 384 $ 27 2021 1,440 46 2022 1,461 16 2023 1,493 2 2024 1,030 1 Thereafter 1,520 — Total lease payments $ 7,328 $ 92 Less: Imputed interest (1,221 ) (13 ) Present value of lease liabilities $ 6,107 $ 79 The Company's future minimum lease commitments as of June 30, 2019, under ASC Topic 840, the predecessor to Topic 842, are as follows: ($ in thousands) Operating Leases Capital Leases 2020 $ 1,326 $ 106 2021 1,151 34 2022 1,180 12 2023 1,208 1 2024 859 1 Thereafter 1,550 — Total minimum lease payments $ 7,274 $ 154 Less: interest (14 ) Present value of minimum lease payments, net 140 Less: current obligations under capital leases (106 ) Obligations under capital leases, noncurrent $ 34 Lessor Accounting Lessor accounting remained substantially unchanged with the adoption of ASC Topic 842. The Company offers its customers financing for the lease of our POS electronic payment devices. We account for these transactions as sales-type leases. Our sales-type leases generally have a non-cancellable term of 60 months . Certain leases contain an end-of-term purchase option that is generally insignificant and is reasonably certain to be exercised by the lessee. Leases that do not meet the criteria for sales-type lease accounting are accounted for as operating leases, typically our JumpStart program leases. JumpStart terms are typically 36 months and are cancellable with 30 to 60 days' written notice. As discussed in Note 2 , the Company has elected to combine lease and non-lease components for its operating leases and account for the combined components under ASC 606, which is the predominant characteristic of the combined components. All QuickStart leases are sales-type and do not qualify for the election. Lessor consideration is allocated between lease components and the non-lease components using the requirements under ASC 606. Revenue from sales-type leases is recognized upon shipment to the customer and the interest portion is deferred and recognized as earned. The revenues related to the sales-type leases are included in Equipment sales in the Consolidated Statements of Operations and a portion of the lease payments as interest income. Revenue from operating leases is recognized ratably over the applicable service period with service fee revenue related to the leases included in License and transaction fees in the Consolidated Statements of Operations. Property and equipment used for the operating lease rental program consisted of the following: ($ in thousands) March 31, June 30, Cost $ 32,572 36,190 Accumulated depreciation (27,664 ) (30,473 ) Net $ 4,908 $ 5,717 The Company’s net investment in sales-type leases (carrying value of lease receivables) and the future minimum amounts to be collected on these lease receivables as of March 31, 2020 are disclosed within Note 6 - Finance Receivables. |
LEASES | LEASES Lessee Accounting The Company determines if an arrangement is a lease at inception. The Company has operating and finance leases for office space, warehouses, automobiles and office equipment. USAT’s leases have lease terms of one year to eight years and some include options to extend and/or terminate the lease. The exercise of lease renewal options is at the Company’s sole discretion. When deemed reasonably certain of exercise, the renewal options are included in the determination of the lease term. The Company’s lease agreements do not contain any material variable lease payments, material residual value guarantees or any material restrictive covenants. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date of the lease based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate, which is the collateralized rate of interest that we would pay to borrow over a similar term an amount equal to the lease payments, based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. USAT has lease agreements with lease and non-lease components, which are accounted for together as a single lease component. Lease expense for operating lease payments are recognized on a straight-line basis over the lease term. Variable lease payments that are not based on an index or that result from changes to an index subsequent to the initial measurement of the corresponding lease liability are not included in the measurement of lease ROU assets or liabilities and instead are recognized in earnings in the period in which the obligation for those payments is incurred. At March 31, 2020 , the Company has the following balances recorded in the balance sheet related to its lease arrangements: ($ in thousands) Classification As of March 31, 2020 Assets Operating leases Operating lease right-of-use assets $ 5,903 Finance leases Property and equipment, net 73 Liabilities Current: Operating leases Accrued expenses 1,082 Finance leases Finance lease obligations and current obligations under long-term debt 55 Non-current: Operating leases Operating lease liabilities, non-current 5,025 Finance leases Finance lease obligations and long-term debt, less current portion $ 24 Components of lease cost are as follows: ($ in thousands) Three months ended March 31, 2020 Nine months ended March 31, 2020 Finance lease costs: Amortization of ROU assets $ 25 $ 79 Interest on lease assets 3 8 Operating lease costs* 515 1,970 Total $ 543 $ 2,057 * Includes short-term lease and variable lease costs, which are not material. Supplemental cash flow information and non-cash activity related to our leases are as follows: ($ in thousands) Nine months ended March 31, 2020 Supplemental cash flow information: Cash paid for amounts included in the measurement of lease liabilities Financing cash flows from finance leases $ 73 Operating cash flows from finance leases 9 Operating cash flows from operating leases 1,350 Non-cash activity Right-of-use assets obtained in exchange for lease obligations: Finance lease liabilities 12 Operating lease liabilities $ 3,384 Weighted-average remaining lease term and discount rate for our leases are as follows: Nine months ended March 31, 2020 Weighted-average remaining lease term (years) Finance leases 1.4 Operating leases 5.4 Weighted-average discount rate Finance leases 9.9 % Operating leases 6.8 % Maturities of lease liabilities by fiscal year for our leases are as follows: ($ in thousands) Operating Leases Finance Leases Remainder of 2020 $ 384 $ 27 2021 1,440 46 2022 1,461 16 2023 1,493 2 2024 1,030 1 Thereafter 1,520 — Total lease payments $ 7,328 $ 92 Less: Imputed interest (1,221 ) (13 ) Present value of lease liabilities $ 6,107 $ 79 The Company's future minimum lease commitments as of June 30, 2019, under ASC Topic 840, the predecessor to Topic 842, are as follows: ($ in thousands) Operating Leases Capital Leases 2020 $ 1,326 $ 106 2021 1,151 34 2022 1,180 12 2023 1,208 1 2024 859 1 Thereafter 1,550 — Total minimum lease payments $ 7,274 $ 154 Less: interest (14 ) Present value of minimum lease payments, net 140 Less: current obligations under capital leases (106 ) Obligations under capital leases, noncurrent $ 34 Lessor Accounting Lessor accounting remained substantially unchanged with the adoption of ASC Topic 842. The Company offers its customers financing for the lease of our POS electronic payment devices. We account for these transactions as sales-type leases. Our sales-type leases generally have a non-cancellable term of 60 months . Certain leases contain an end-of-term purchase option that is generally insignificant and is reasonably certain to be exercised by the lessee. Leases that do not meet the criteria for sales-type lease accounting are accounted for as operating leases, typically our JumpStart program leases. JumpStart terms are typically 36 months and are cancellable with 30 to 60 days' written notice. As discussed in Note 2 , the Company has elected to combine lease and non-lease components for its operating leases and account for the combined components under ASC 606, which is the predominant characteristic of the combined components. All QuickStart leases are sales-type and do not qualify for the election. Lessor consideration is allocated between lease components and the non-lease components using the requirements under ASC 606. Revenue from sales-type leases is recognized upon shipment to the customer and the interest portion is deferred and recognized as earned. The revenues related to the sales-type leases are included in Equipment sales in the Consolidated Statements of Operations and a portion of the lease payments as interest income. Revenue from operating leases is recognized ratably over the applicable service period with service fee revenue related to the leases included in License and transaction fees in the Consolidated Statements of Operations. Property and equipment used for the operating lease rental program consisted of the following: ($ in thousands) March 31, June 30, Cost $ 32,572 36,190 Accumulated depreciation (27,664 ) (30,473 ) Net $ 4,908 $ 5,717 The Company’s net investment in sales-type leases (carrying value of lease receivables) and the future minimum amounts to be collected on these lease receivables as of March 31, 2020 are disclosed within Note 6 - Finance Receivables. |
REVENUE
REVENUE | 9 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Disaggregated Revenue Based on similar operational and economic characteristics, the Company’s revenue from contracts with customers is disaggregated by License and transaction fees and Equipment sales, as reported in the Company’s Condensed Consolidated Statements of Operations. The Company believes these revenue categories depict how the nature, amount, timing, and uncertainty of its revenue and cash flows are influenced by economic factors, and also represent the level at which management makes operating decisions and assesses financial performance. Transaction Price Allocated to Future Performance Obligations In determining the transaction price allocated to unsatisfied performance obligations, we did not include non-recurring charges. Further, we applied the practical expedient to not consider arrangements with an original expected duration of one year or less, which are primarily month to month rental agreements. The majority of contracts are considered to have a contractual term of between 36 and 60 months based on implied and explicit termination penalties. These amounts will be converted into revenue in future periods as work is performed, primarily based on the services provided or at delivery and acceptance of products, depending on the applicable accounting method. The following table reflects the estimated fees to be recognized in the future related to performance obligations that are unsatisfied at the end of the period: ($ in thousands) As of March 31, 2020 2020 $ 3,536 2021 12,668 2022 11,120 2023 8,524 2024 and thereafter 5,000 Total $ 40,848 Contract Liabilities The Company’s contract liability (i.e., deferred revenue) balances are as follows: Three months ended March 31, Nine months ended March 31, ($ in thousands) 2020 2020 Deferred revenue, beginning of the period 1,629 1,681 Deferred revenue, end of the period 1,621 1,621 Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period 120 467 The change in the contract liabilities period-over-period is primarily the result of timing difference between the Company’s satisfaction of a performance obligation and payment from the customer. Contract Costs At March 31, 2020 , the Company had net capitalized costs to obtain contracts of $0.3 million included in Prepaid expenses and other current assets and $1.7 million included in Other noncurrent assets on the Condensed Consolidated Balance Sheet. None of these capitalized contract costs were impaired. During the three and nine months ended March 31, 2020 , amortization of capitalized contract costs was $0.1 million and $0.4 million , respectively. |
RESTRUCTURING_INTEGRATION COSTS
RESTRUCTURING/INTEGRATION COSTS | 9 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING/INTEGRATION COSTS | RESTRUCTURING/INTEGRATION COSTS On October 17, 2019, Stephen P. Herbert resigned as Chief Executive Officer (“CEO”) of the Company and as a member of the Company’s Board of Directors. Mr. Herbert received a severance payment in the amount of $400,000 in a lump sum, less applicable taxes, on October 25, 2019, along with certain other benefits as more fully described in the Company's Current Report on Form 8-K filed with the SEC on October 18, 2019. Subsequent to the Cantaloupe acquisition, the Company initiated workforce reductions to integrate the Cantaloupe business for which costs totaled $2.1 million for the year ended June 30, 2018. The Company included these severance charges under “Integration and acquisition costs” within the Condensed Consolidated Statements of Operations, with the remaining outstanding balance included within “Accrued expenses” on the Condensed Consolidated Balance Sheet. All amounts were paid as of December 31, 2019. No additional severance activity related to the integration of the Cantaloupe business was recorded for the three months ended March 31, 2020. The following table summarizes the Company’s severance activity for the three and six months ended December 31, 2019 related to the workforce reductions to integrate the Cantaloupe business: ($ in thousands) Workforce reduction Balance at July 1, 2019 $ 175 Plus: additions 26 Less: cash payments — Balance at September 30, 2019 $ 201 Plus: additions 9 Less: cash payments (210 ) Balance at December 31, 2019 $ — |
FINANCE RECEIVABLES
FINANCE RECEIVABLES | 9 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
FINANCE RECEIVABLES | FINANCE RECEIVABLES The Company's finance receivables consist of financed devices under the Quickstart program and Cantaloupe devices contractually associated with the Seed platform. Predominately all of the Company's finance receivables agreements are classified as non-cancellable 60 month sales-type leases. As of March 31, 2020 and June 30, 2019 finance receivables consist of the following: ($ in thousands) March 31, June 30, Current finance receivables, net $ 7,941 6,727 Finance receivables due after one year, net 11,541 12,642 Total finance receivables, net of allowance of $702 and $606, respectively $ 19,482 $ 19,369 The Company routinely evaluates outstanding finance receivables for impairment based on past due balances or accounts otherwise determined to be at a higher risk of loss. A finance receivable is classified as nonperforming if it is considered probable the Company will be unable to collect all contractual interest and principal payments as scheduled. At March 31, 2020 and June 30, 2019 , credit quality indicators consisted of the following: ($ in thousands) March 31, June 30, Performing $ 19,482 $ 19,369 Nonperforming 702 606 Total $ 20,184 $ 19,975 As part of the financing under the Quickstart program and Cantaloupe devices contractually associated with the Seed platform, the Company has contractually granted deferred payment terms, where the entire sequence of up to 60 monthly payments are deferred by an agreed upon period. The “Deferred Payment Arrangements / Timing” column represents amounts subject to the agreed upon deferral period or amounts subject to adjustments related to situations where a third party is financing the receivable. The “Other Finance Receivables” column represents an aging schedule for finance receivables not subject to such deferral arrangements and other non-performing receivables. March 31, June 30, ($ in thousands) Deferred Payment Arrangements / Timing Other Finance Receivables Total Total Current $ 18,367 $ 353 $ 18,720 $ 19,133 0-30 days 37 103 140 190 31-60 days 193 44 237 49 61-90 days 34 36 70 146 Greater than 91 days 513 504 1,017 457 Total finance receivables (gross) $ 19,144 $ 1,040 $ 20,184 $ 19,975 Cash to be collected on our performing finance receivables due for each of the fiscal years are as follows: ($ in thousands) 2020 $ 4,977 2021 6,159 2022 5,513 2023 3,908 2024 1,957 Thereafter 79 Total amounts to be collected 22,593 Less: interest (2,409 ) Less: allowance for nonperforming receivables (702 ) Total finance receivables $ 19,482 |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 9 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | EARNINGS (LOSS) PER SHARE The calculation of basic earnings (loss) per share (“EPS”) and diluted EPS are presented below: Three months ended March 31, ($ in thousands, except per share data) 2020 2019 Numerator for basic and diluted loss per share Net loss $ (9,295 ) $ (4,306 ) Preferred dividends (334 ) (334 ) Net loss applicable to common shareholders $ (9,629 ) (4,640 ) Denominator for basic loss per share - Weighted average shares outstanding 64,096,778 60,065,053 Effect of dilutive potential common shares — — Denominator for diluted loss per share - Adjusted weighted average shares outstanding 64,096,778 60,065,053 Basic loss per share $ (0.15 ) $ (0.08 ) Diluted loss per share $ (0.15 ) $ (0.08 ) Nine months ended March 31, ($ in thousands, except per share data) 2020 2019 Numerator for basic and diluted loss per share Net loss $ (29,181 ) $ (20,032 ) Preferred dividends (668 ) (668 ) Net loss applicable to common shareholders $ (29,849 ) $ (20,700 ) Denominator for basic loss per share - Weighted average shares outstanding 62,591,947 60,059,594 Effect of dilutive potential common shares — — Denominator for diluted loss per share - Adjusted weighted average shares outstanding 62,591,947 60,059,594 Basic loss per share $ (0.48 ) $ (0.34 ) Diluted loss per share $ (0.48 ) $ (0.34 ) Anti-dilutive shares excluded from the calculation of diluted loss per share were 1,625,414 for the three and nine months ended March 31, 2020 and 1,240,302 for the three and nine months ended March 31, 2019 |
GOODWILL AND INTANGIBLES
GOODWILL AND INTANGIBLES | 9 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE | GOODWILL AND INTANGIBLES Intangible asset balances and goodwill consisted of the following: As of March 31, 2020 ($ in thousands) Gross Accumulated Amortization Net Amortization Period Intangible assets: Non-compete agreements $ 2 $ (2 ) $ — 2 years Brand and tradenames 1,695 (642 ) 1,053 3 - 7 years Developed technology 10,939 (4,649 ) 6,290 5 - 6 years Customer relationships 19,049 (2,574 ) 16,475 10 - 18 years Total intangible assets $ 31,685 $ (7,867 ) $ 23,818 Goodwill 63,945 — 63,945 Indefinite Total intangible assets & goodwill $ 95,630 $ (7,867 ) $ 87,763 As of June 30, 2019 ($ in thousands) Gross Accumulated Amortization Net Amortization Period Intangible assets: Non-compete agreements $ 2 $ (2 ) $ — 2 years Brand and tradenames 1,695 (470 ) 1,225 3 - 7 years Developed technology 10,939 (3,266 ) 7,673 5 - 6 years Customer relationships 19,049 (1,776 ) 17,273 10 - 18 years Total intangible assets $ 31,685 $ (5,514 ) $ 26,171 Goodwill 63,945 — 63,945 Indefinite Total intangible assets & goodwill $ 95,630 $ (5,514 ) $ 90,116 For the three and nine months ended March 31, 2020 there was $0.8 million and $2.4 million in amortization expense related to intangible assets, respectively, as compared to the three and nine months ended March 31, 2019 , for which there was $0.8 million and $2.4 million |
DEBT AND OTHER FINANCING ARRANG
DEBT AND OTHER FINANCING ARRANGEMENTS | 9 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
DEBT AND OTHER FINANCING ARRANGEMENTS | DEBT AND OTHER FINANCING ARRANGEMENTS The Company's debt and other financing arrangements as of March 31, 2020 and June 30, 2019 consisted of the following: As of As of ($ in thousands) 2020 2019 Term Facility $ 15,000 $ — Revolving Credit Facility — 10,000 Term Loan — 1,458 Other, including finance lease obligations 423 1,323 Less: unamortized issuance costs and debt discount (2,745 ) (8 ) Total 12,678 12,773 Less: debt and other financing arrangements, current (381 ) (12,497 ) Debt and other financing arrangements, noncurrent $ 12,297 $ 276 Details of interest expense presented on the Condensed Consolidated Statements of Operations are as follows: Three months ended March 31, Nine months ended March 31, ($ in thousands) 2020 2019 2020 2019 Term Facility $ 542 $ — $ 921 $ — Revolving Credit Facility — 170 303 526 Term Loan — 456 160 1,158 Other interest expense 141 287 597 834 Total interest expense $ 683 $ 913 $ 1,981 $ 2,518 Revolving Credit Facility and Term Loan with JPMorgan Chase On November 9, 2017, in connection with the acquisition of Cantaloupe, the Company entered into a five year credit agreement among the Company, as the borrower, its subsidiaries, as guarantors, and JPMorgan Chase Bank, N.A., as the lender and administrative agent for the lender (the “Lender”), pursuant to which the Lender (i) made a $25 million Term Loan to the Company and (ii) provided the Company with the Revolving Credit Facility under which the Company may borrow revolving credit loans in an aggregate principal amount not to exceed $12.5 million at any time. The proceeds of the Term Loan and borrowings under the Revolving Credit Facility, in an aggregate principal amount equal to $35.0 million , were used by the Company to finance a portion of the purchase price for the acquisition of Cantaloupe ( $27.8 million ) and repay existing indebtedness ( $7.2 million ). All advances under the Revolving Credit Facility and all other obligations were required to be paid in full at maturity on November 9, 2022. Loans under the five year credit agreement bore interest, at the Company's option, by reference to a base rate or a rate based on LIBOR, in either case, plus an applicable margin determined quarterly based on the Company's total leverage ratio as of the last day of each fiscal quarter. The applicable interest rate on the loans for the year to date ended October 31, 2019 was LIBOR plus 4% . The Term Loan and Revolving Credit Facility contained customary representations and warranties and affirmative and negative covenants and required the Company to maintain a minimum quarterly total leverage ratio and fixed charge coverage ratio. The Revolving Credit Facility and Term Loan also required the Company to furnish various financial information on a quarterly and annual basis. As of June 30, 2019, the Company was not in compliance with the fixed charge coverage ratio and the total leverage ratio, which represented an event of default under the Term Facility and the Company classified all amounts outstanding under the Revolving Credit Facility and Term Loan as current liabilities as of June 30, 2019. Due to the Company's delay in filing its periodic reports, between September 28, 2018, and September 30, 2019, the parties entered into various agreements to provide for the extension of the delivery of the Company’s financial information required under the terms of the credit agreement. In connection with these agreements, the Company incurred extension fees due to the lender, totaling $0.2 million , between September 28, 2018 and September 30, 2019. Additionally, during the quarter ended March 31, 2019, the Company prepaid $20.0 million of the balance outstanding under the Term Loan, and on September 30, 2019, the Company prepaid the remaining principal balance of the Term Loan and agreed to permanently reduce the amount available under the Revolving Credit Facility to $10 million which represented the outstanding balance on the date thereof. On October 31, 2019, the Company repaid the outstanding balance on the Revolving Credit Facility. Term Facility with Antara On October 9, 2019, as a result of seeking additional financing sources to support the Company's operating activities, the Company entered into a commitment letter with Antara Capital Master Fund LP (“Antara”), pursuant to which Antara committed to extend to the Company a $30.0 million senior secured term loan facility (“Term Facility”). On October 31, 2019, the Company entered into a Financing Agreement with Antara to draw $15.0 million on the Term Facility and agreed to draw an additional $15.0 million at any time between July 31, 2020 and April 30, 2021, subject to the terms of the Financing Agreement. If the Company fails to make the subsequent draw on the Term Facility by April 30, 2021, the Company shall pay Antara a commitment termination fee equal to 3% of the subsequent draw commitment. The outstanding amount of the draws under the Term Facility bear interest at 9.75% per annum, payable monthly in arrears. The proceeds of the initial draw were used to repay the outstanding balance of the Revolving Credit Facility due to JPMorgan Chase Bank, N.A. in the amount of $10.1 million , including accrued interest payable, and to pay transaction expenses, and the Company intends to utilize the balance for working capital and general corporate purposes. The outstanding principal amount of the loan must be paid in full by no later than the maturity date of October 31, 2024. The Company is required to be in compliance with financial covenants related to the minimum fixed charge coverage ratio beginning with the fiscal quarter ending June 30, 2020, maximum capital expenditures beginning with the fiscal quarter ending December 31, 2019, and minimum consolidated EBITDA beginning with the fiscal year ending June 30, 2020. As of March 31, 2020 , the Company was in compliance with its capital expenditures financial covenant. The Company is evaluating its options with respect to the Financing Agreement, including all rights and remedies that may be available to it. Based upon the current financial forecast for the fourth quarter of fiscal year 2020, without a refinancing or modification of existing terms within the Term Facility, the Company anticipates that as of June 30, 2020, it is highly likely the Company will not be in compliance with the minimum fixed charge coverage ratio and the minimum consolidated EBITDA of its Term Facility. Unless the Commitment Letter is rescinded, amended, or replaced, noncompliance would represent an event of default under the Term Facility, and, following the request of the Required Lenders (as such term is defined in the Term Facility), all unpaid principal of $15.0 million and accrued interest to Antara would immediately become due, in addition to a $0.8 million prepayment premium. In addition, all of the Company's unamortized issuance costs and debt discount related to the Term Facility would be recognized upon repayment of the loan as interest expense in the period of repayment, which as of March 31, 2020 was $2.7 million . The Company may prepay any principal amount outstanding on the Term Facility plus a prepayment premium of 5% (if prepaid on or prior to December 31, 2020), 3% (between January 1, 2021 and December 31, 2021), 1% (between January 1, 2022 and December 31, 2022) and 0% thereafter. Under the Term Facility, the Company is subject to mandatory prepayments as a result of certain asset sales, insurance proceeds, issuances of disqualified capital stock, and issuances of debt. These mandatory prepayments are subject to the prepayment premium that applies to voluntary prepayments. The Company is also subject to annual mandatory prepayments ranging from 0% to 75% of excess cash flow depending upon the consolidated total leverage ratio measured at the end of each fiscal year beginning with the fiscal year ending June 30, 2020. These mandatory prepayments are not subject to the aforementioned prepayment premium. As discussed in Note 12, on October 9, 2019, the Company also sold shares of the Company’s common stock to Antara at a price below market value. Since the Term Facility and equity issuance were negotiated in contemplation of each other and executed within a short period of time, the Company evaluated the debt and equity financing as a combined arrangement, and estimated the fair values of the debt and equity components to allocate the proceeds, net of the registration rights agreement liability (Note 12) on a relative fair value basis between the debt and equity components. The non-lender fees incurred to establish the debt and equity financing arrangement were allocated to the debt and equity components, which includes the delayed draw commitment, on a relative fair value basis and capitalized on the Company’s balance sheet. $0.9 million was allocated to debt issuance costs which is amortized on an effective interest method into interest expense over the term of the Term Facility and $0.1 million was allocated to debt commitment fees which is amortized on a straight-line basis through April 30, 2021. The Term Facility was further evaluated for the existence of embedded features to be bifurcated from the amount allocated to the debt component. The Term Facility agreement contains a mandatory prepayment feature that was determined to be an embedded derivative, requiring bifurcation and fair value recognition for the derivative liability. The fair value of this derivative liability is remeasured at each reporting period, with changes in fair value recognized in the consolidated statement of operations and any changes in the assumptions used in measuring the fair value of the derivative liability could result in a material increase or decrease in its carrying value. The allocation of the proceeds to the debt component and the bifurcation of the embedded derivative liability resulted in a $2.1 million debt discount that will be amortized as a credit to interest expense over the term of the Term Facility. If the Company does not meet its financial covenants as of June 30, 2020 and the debt and all accrued interest immediately becomes due as described above, all of the Company's unamortized issuance costs and debt discount would be recognized upon repayment of the loan as interest expense in the period of repayment. At March 31, 2020, the unamortized balance of the $0.9 million debt issuance costs and the $2.1 million debt discount was $2.7 million . Other Borrowings In connection with the acquisition of Cantaloupe, the Company assumed debt of $1.8 million with an outstanding balance of $0.3 million and $0.8 million as of March 31, 2020 and June 30, 2019 , respectively, comprised of: (i) $0.0 million and $0.2 million of promissory notes bearing an interest rate of 5% and maturing on April 5, 2020 with principal and interest payments due monthly; (ii) $0.3 million and $0.4 million of promissory notes bearing an interest rate of 10% and maturing on April 1, 2021 with principal and interest payments due quarterly; and (iii) $0.1 million as of June 30, 2019 of promissory notes bearing an interest rate of 12% that matured on December 15, 2019. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Financial assets and liabilities are initially recorded at fair value. The carrying amounts of certain of the Company’s financial instruments, including cash equivalents, accounts receivable, accounts payable and accrued expenses, are carried at cost which approximates fair value due to the short-term maturity of these instruments and are Level 1 assets or liabilities of the fair value hierarchy. The accounting guidance for fair value provides a framework for measuring fair value, clarifies the definition of fair value and expands disclosures regarding fair value measurements. Fair value is defined as the price that would be received in the sale of an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value 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 embedded derivative liability is measured at fair value using a probability-weighted discounted cash flow model and is classified as a Level 3 liability of the fair value hierarchy due to the use of significant unobservable inputs. The liability is included as a component of Accrued expenses, less current portion on the consolidated balance sheets and subject to remeasurement to fair value at the end of each reporting period. For the three and nine months ended March 31, 2020 , the Company recognized the change as a component of Other income (expense) in its consolidated statements of operations. The assumptions used in the discounted cash flow model of the embedded derivative liability include: (1) management's estimates of the probability and timing of future cash flows and related events; (2) the Company's risk-adjusted discount rate that includes a company-specific risk premium; and (3) the Company's cost of debt. The assumptions used in the discounted cash flow model were based on information known to the Company as of March 31, 2020. As described above, based on current forecasts, it is highly likely the Company will not be in compliance with certain covenants within the Term Facility as of June 30, 2020. The Company is currently pursuing a refinancing or modification of its Term Facility, or alternative financing arrangements. As a result, subsequent to March 31, 2020, the refinancing or modification may have a material impact on the assumptions used in the discounted cash flow model and related embedded derivative liability. If the Company is not in compliance with its covenants on June 30, 2020, this is likely to cause a material decrease in the carrying value of the embedded derivative liability. There were no transfers between Level 1, Level 2, and Level 3 during the periods presented. The following table provides a reconciliation for the opening and closing balances of the embedded derivative liability from October 31, 2019 to March 31, 2020 : ($ in millions) Balance at October 31, 2019 $ 1.5 Net change in fair value — Balance at December 31, 2019 1.5 Net change in fair value (1.1 ) Balance at March 31, 2020 $ 0.4 The Company’s obligations under its long-term debt agreements are carried at amortized cost, which approximates their fair value as of June 30, 2019. The fair value of the Company’s obligations under its long-term debt agreements with JPMorgan Chase were considered Level 2 liabilities of the fair value hierarchy because these instruments have interest rates that reset frequently. The fair value of the Company's obligations under its long-term debt agreements with Antara as of March 31, 2020 was approximately $16.1 million and considered a Level 3 liability of the fair value hierarchy because this instrument used significant unobservable inputs consistent with those used in determining the embedded derivative liability values. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES On March 27, 2020, in response to COVID-19 and its detrimental impact to the global economy, President Trump signed the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) into law, which provides a stimulus to the U.S. economy in the form of various individual and business assistance programs as well as temporary changes to existing tax law. Among the changes to the provision in business tax laws include a five-year net operating loss carryback for the 2018, 2019 and 2020 tax years, a deferral of the employer’s portion of the social security tax, an increase in the interest expense limitation under Section 163(j) from 30% to 50% for the 2019 and 2020 tax years, and others. ASC 740 requires the tax effects of changes in tax laws or rates to be recorded in the period of enactment. None of the income tax provisions of the CARES Act have a material impact on the Company, and therefore no adjustment was recorded. For the three months ended March 31, 2020 , the Company recorded an income tax benefit of $85 thousand . For the nine months ended March 31, 2020 , the Company recorded an income tax provision of $46 thousand . As of March 31, 2020, the Company reviewed the existing deferred tax assets in light of COVID-19 and continues to record a full valuation against its deferred tax assets. The income tax provisions primarily relate to the Company's uncertain tax positions, as well as state income and franchise taxes. As of March 31, 2020, the Company had a total unrecognized income tax benefit of $0.2 million . The Company is actively working with the tax authorities related to the majority of this uncertain tax position and it is reasonably possible that a majority of the uncertain tax position will be settled within the next 12 months. The provision is based upon actual loss before income taxes for the nine months ended March 31, 2020, as the use of an estimated annual effective income tax rate does not provide a reliable estimate of the income tax provision. The Company will continue to monitor the status of the COVID-19 pandemic and its impact on our results of operations. For the three months ended March 31, 2019 , an income tax provision of $23 thousand was recorded, which primarily relates to state income and franchise taxes. For the nine months ended March 31, 2019 , an income tax provision of $60 thousand was recorded, which primarily relates to state income and franchise taxes. The provisions are based upon actual loss before income taxes for the nine months ended March 31, 2019 , as the use of an estimated annual effective income tax rate does not provide a reliable estimate of the income tax provision. |
EQUITY
EQUITY | 9 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
EQUITY | EQUITY WARRANTS The Company had 23,978 warrants outstanding as of March 31, 2020 and June 30, 2019 , all of which were exercisable at $5.00 per share. The warrants have an expiration date of March 29, 2021. 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. In July 2017, 135,000 stock options were granted to 11 employees vesting 1/3 on July 26, 2018, 1/3 on July 26, 2019 and 1/3 on July 26, 2020 expiring if not exercised prior to July 26, 2022. The options are intended to qualify as incentive stock options under Section 422 of the Internal Revenue Code of 1986, as amended. In August 2017, the Company awarded stock options to its former Chief Executive Officer and Chief Financial Officer to purchase up to 19,047 and 25,000 shares respectively of common stock at an exercise price of $5.25 per share. The Chief Executive Officer options vested on August 16, 2018, expiring if not exercised prior to August 16, 2024. The Chief Financial Officer options were scheduled to vest 1/3 on August 16, 2018, 1/3 on August 16, 2019 and 1/3 on August 16, 2020, expiring if not exercised prior to August 16, 2024. The Chief Executive Officer options were intended to qualify as incentive stock options under Section 422 of the Internal Revenue Code of 1986, as amended, and the Chief Financial Officer options are non-qualified stock options. The Company's former Chief Executive Officer exercised all of his 274,267 outstanding options during the three months ended December 31, 2019. The Company's former Chief Financial Officer forfeited the remaining unvested options upon her resignation effective January 7, 2019. In September 2018, the Company awarded stock options to 102 employees to purchase up to 400,000 shares of common stock at an exercise price of $8.75 which vest 1/3 each year. In October 2019, the Company awarded stock options to its then-interim Chief Executive Officer to purchase up to 225,000 shares of common stock at an exercise price of $7.18 per share which vested immediately and are non-qualified stock options. In November 2019, the Company awarded stock options to 11 employees to purchase up to 110,000 shares of common stock at an exercise price of $6.28 which vest 1/3 each year. The options are intended to qualify as incentive stock options under Section 422 of the Internal Revenue Code of 1986, as amended. The fair value of options granted during the nine months ended March 31, 2020 and 2019 was determined using the following assumptions: Nine months ended March 31, 2020 2019 Expected volatility (percent) 74.6% - 90.1% 58.4% - 70.9% Expected life (years) 3.5 - 4.5 4.5 Expected dividends 0.0 % 0.0 % Risk-free interest rate (percent) 1.4% - 1.6% 2.23% - 2.91% Number of options granted 340,760 420,000 Weighted average exercise price $ 6.85 $ 8.52 Weighted average grant date fair value $ 6.84 $ 4.27 Stock based compensation related to all stock options for the three and nine months ended March 31, 2020 was $0.1 million and $1.5 million , respectively, and $0.2 million and $0.6 million for the three and nine months ended March 31, 2019 , respectively. COMMON STOCK On July 2, 2018, 6,677 shares were awarded to each non-employee director for a total of 40,062 shares. The shares were scheduled to vest on a monthly basis over the two -year period following July 2, 2018. On October 9, 2019, the Company sold to Antara 3,800,000 shares of the Company’s common stock at a below market value price of $5.25 per share for gross cash proceeds of $19,950,000 . Since the Term Facility and equity issuance were negotiated in contemplation of each other and executed within a short period of time, the Company evaluated the debt and equity financing as a combined arrangement, and estimated the fair values of the debt and equity components to allocate the total proceeds on a relative fair value basis between the debt and equity components, resulting in a $17.9 million allocation to equity, less $1.1 million in issuance fees allocated to the equity component on a relative fair value basis. On October 16, 2019, 13,216 shares were awarded to each non-employee director and its interim Chief Executive Officer for a total of 118,944 shares. 1/3 of the shares vested immediately at the award date, with the remaining shares scheduled to vest on October 16, 2020. On November 22, 2019, 104,500 total shares were awarded to 11 employees. The shares vest 1/3 each year. On February 28, 2020, the Company awarded 186,916 total shares to its Chief Executive Officer. The shares were scheduled to vest 1/4 on February 28, 2021, with the remaining shares scheduled to vest on a quarterly basis thereafter through February 28, 2024. The Company also awarded 10,778 shares each for a total of 21,556 shares which were scheduled to vest on February 28, 2021 to new non-employee directors Kelly Kay and Sunil Sabharwal. The Company also awarded 16,767 total shares to its Chief Financial Officer and 8,982 total shares to its Chief Accounting Officer which vest 1/3 each year. On November 8, 2019, Albin F. Moschner retired as a member of the Board of Directors, and his remaining unvested shares immediately vested. On February 28, 2020, Steven D. Barnhart, Joel Brooks, and William J. Reilly, Jr. resigned as members of the Board of Directors, and their remaining unvested shares were forfeited immediately. Due to the resignation of the Chief Executive Officer and members of the Board of Directors in the fourth quarter of fiscal year 2020, certain unvested common stock awards were forfeited upon their resignations. See Note 14. The total expense recognized for all common stock awards for the three and nine months ended March 31, 2020 was $0.4 million and $0.9 million , and for the three and nine months ended March 31, 2019 was $0.1 million and $0.4 million , respectively. LONG TERM INCENTIVE PLANS In October 2019, the Company's Board of Directors approved the Fiscal Year 2020 Long-Term Stock Incentive Plan (“FY20 LTI Plan”) which provides that each executive officer would be awarded shares of common stock of the Company in the event that certain metrics relating to the Company’s 2020 fiscal year would result in specified ranges of year-over-year percentage growth. The metrics are total number of connections as of June 30, 2020 as compared to total number of connections as of June 30, 2019 ( 40% weighting) and adjusted EBITDA earned during the 2020 fiscal year as compared to the adjusted EBITDA earned during the 2019 fiscal year ( 60% weighting). If none of the minimum threshold year-over-year percentage target goals are achieved, the executive officers would not be awarded any shares. Assuming the minimum threshold year-over-year percentage target goal would be achieved for a particular metric, the number of shares to be awarded for that metric would be determined on a pro rata basis, provided that the award would not exceed the maximum distinguished award for that metric (which in any event cannot exceed 150% of the executive officer’s target bonus award). Any shares awarded under the plan would vest as follows: one-third at the time of issuance; one-third on June 30, 2021; and one-third on June 30, 2022. The Company is evaluating the impact of COVID-19 on the FY20 LTI Plan. The Company had long-term stock incentive plans in prior fiscal years for its then executive officers. Stock based compensation related to the LTI plans was as follows in the three and nine months ended March 31, 2020 and 2019 : Three months ended March 31, Nine months ended March 31, ($ in thousands) 2020 2019 2020 2019 FY20 LTI Plan $ (83 ) $ — $ 36 $ — FY18 LTI Plan 2 30 21 91 FY17 LTI Plan — 17 — 68 Total $ (81 ) $ 47 $ 57 $ 159 SHAREHOLDER RIGHTS PLAN Effective April 27, 2020, the Company's Board of Directors terminated the shareholder rights plan, implemented on October 18, 2019. The Company determined it was in the best interests of the Company and its shareholders to redeem the shareholder rights plan and as a result, the rights plan, which was previously scheduled to automatically expire at the time of the Company's 2020 annual meeting of shareholders, was terminated. REGISTRATION RIGHTS AGREEMENT In connection with the Stock Purchase Agreement on October 9, 2019 with Antara, the Company also entered into a registration rights agreement (the "Registration Rights Agreement") with Antara, pursuant to which the Company agreed, at its expense, to file a registration statement under the Act with the Securities and Exchange Commission (the "SEC") covering the resale of the shares by Antara (the "Registration Statement"). Pursuant to an Amendment to Registration Rights Agreement dated as of January 31, 2020 (the “Amendment”), Antara and the Company agreed to terminate the obligation of the Company to register the shares in exchange for a payment of approximately $1.2 million by the Company to Antara. The Amendment provided that the payment would be in full satisfaction of any and all liquidated damages which may be due by the Company to Antara under the Registration Rights Agreement for the failure to timely file the Form S-1 registration statement and/or to obtain and maintain the effectiveness thereof. Under the Registration Rights Agreement, and prior to the Amendment, the Company was required to file the registration statement by no later than November 8, 2019 (extended by agreement of the parties until November 26, 2019). The Company informed Antara that it would not be able to file the Registration Statement without unreasonable effort and expense because the applicable rules of the SEC require the Company to include certain pre-acquisition financial statements of Cantaloupe in the Registration Statement. These pre-acquisition financial statements had been filed by the Company as exhibit 99.1 to the Form 8-K/A filed on January 24, 2018. As part of the audit process and subsequent to June 30, 2019, the Company performed an extensive analysis relating to certain of the accounts of Cantaloupe for periods subsequent to the acquisition and made certain adjustments to previously issued financial statements, all of which were described in the Company’s annual report on Form 10-K for the year ended June 30, 2019 and the Amendment No. 1 thereto. The Company determined that to perform such an analysis in connection with the pre-acquisition financial statements required to be included in the registration statement would be unduly time consuming and expensive. The Company also sought to obtain a waiver from the staff of the SEC from the regulations which require the inclusion of these pre-acquisition financial statements in the registration statement. By letter dated December 30, 2019, the SEC staff indicated that it was unable to provide such a waiver. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Eastern District of Pennsylvania Consolidated Shareholder Class Actions As previously reported, various putative shareholder class action complaints had been filed in the United States District Court for the District of New Jersey against the Company, its chief executive officer and chief financial officer at the relevant time, its directors at the relevant time, and the investment banks who served as underwriters in the May 2018 follow-on public offering of the Company (the “Underwriters”). These complaints alleged violations of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. These various actions were consolidated by the Court into one action (the “Consolidated Action”), and the Court granted the Motion to Transfer filed by the Company and its former chief executive officer, and transferred the Consolidated Action to the United States District Court for the Eastern District of Pennsylvania, Docket No. 19-cv-04565. On November 20, 2019, Plaintiff filed an amended complaint, and defendants filed motions to dismiss on February 3, 2020. The Court has not yet ruled on the motions to dismiss. The parties participated in a private mediation on February 27, 2020 which resulted in a settlement. On May 29, 2020, the plaintiffs filed documents with the Court seeking preliminary approval of the settlement, with the defendants supporting approval of the settlement. On June 9, 2020, the Court granted preliminary approval of the settlement and issued a scheduling order for further action on the settlement. The settlement provides for a payment of $15.3 million which includes all administrative costs and plaintiff’s attorneys’ fees and expenses. The Company’s insurance carriers are anticipated to pay approximately $12.7 million towards the settlement and the Company is anticipated to pay approximately $2.6 million towards the settlement, which has been recorded as a liability in the accompanying condensed consolidated financial statements. Payments will not be distributed pursuant to the settlement until and unless an opt-out process is completed successfully and the Court grants final approval of the settlement. The Company expects but cannot assure that those events will occur later in the calendar year. Should the settlement not be approved the parties will resume litigation of the claims. Chester County, Pennsylvania Class Action As previously reported, a putative shareholder class action complaint was filed against the Company, its chief executive officer and chief financial officer at the relevant time, its directors at the relevant time, and the Underwriters, in the Court of Common Pleas, Chester County, Pennsylvania, Docket No. 2019-04821-MJ. The complaint alleged violations of the Securities Act of 1933, as amended. As also previously reported, on September 20, 2019 the Court granted the defendants’ Petition for Stay and stayed the Chester County action until the Consolidated Action reaches a final disposition. On October 18, 2019, plaintiff filed an appeal to the Pennsylvania Superior Court from the Order granting defendants’ Petition for Stay, Docket No. 3100 EDA 2019. On December 6, 2019, the Pennsylvania Superior Court issued an Order stating that the Stay Order does not appear to be final or otherwise appealable and directed plaintiff to show cause as to the basis of the Pennsylvania Superior Court’s jurisdiction. The plaintiff filed a Response to the Order to Show Cause on December 16, 2019, and the defendants filed an Application to Quash Appeal on December 26, 2019. On February 20, 2020 the Pennsylvania Superior Court quashed the appeal. Subpoena During the three months ended March 31, 2020, the Company responded to a subpoena received from the U.S. Department of Justice that sought records regarding Company activities that occurred during prior financial reporting periods, including restatements. The Company is cooperating fully with the agency’s queries. HEC Master Fund LP Lawsuit On November 15, 2019, HEC Master Fund LP (together with related entities, including Hudson Executive Capital LP, “HEC”) filed a lawsuit against the Company and its directors at the relevant time in the Court of Common Pleas of Chester County, Pennsylvania, Docket No. 2019-11640-MJ. The lawsuit alleged that the directors’ adoption of an amendment to the Company’s bylaws that prohibited shareholders from calling a special meeting of shareholders until the Company’s next annual meeting of shareholders, along with other efforts by the directors to prevent HEC from soliciting consents to call a special meeting of shareholders, constituted impermissible entrenchment and interference with the shareholder franchise in violation of Pennsylvania law. On November 22, 2019, the Court, with the consent of HEC and the Company, ordered the Company to call and hold its annual meeting of shareholders on or before April 30, 2020. The Court also ordered that the directors stand for election at the annual meeting in accordance with the bylaws and prohibited the board of directors from making further amendments of any kind to the bylaws prior to the annual meeting. Following the entry of that order, HEC voluntarily discontinued the lawsuit. On March 27, 2020, HEC moved to strike the discontinuance and hold the Company in contempt of the Court’s November 22, 2019 order. On April 26, 2020, the parties entered into a Letter Agreement pursuant to which HEC’s action was dismissed with prejudice. HEC Master Fund LP Shareholder Demand By letter dated February 12, 2020, HEC demanded that the Board of Directors investigate, remedy and commence proceedings against certain of the Company’s current and former officers and directors and other responsible parties for breach of fiduciary duties. The matters alleged to constitute breaches of duty related to the matters raised by HEC during the contest for the election of directors at the 2020 annual meeting. On April 26, 2020, the parties entered into a Letter Agreement pursuant to which HEC withdrew its shareholder demand for board action. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Agreement with Hudson Executive Capital LP On April 26, 2020, the Company entered into a Letter Agreement with Hudson Executive Capital LP (“Hudson”), the largest shareholder of the Company, to appoint Lisa P. Baird, Douglas G. Bergeron, Douglas L. Braunstein, Jacob Lamm, Michael K. Passilla, Ellen Richey, Anne M. Smalling and Shannon S. Warren to the Board of Directors. The Company accepted the resignations of Kelly Ann Kay, Robert L. Metzger, Sunil Sabharwal, William J. Schoch and Ingrid S. Stafford from the Board of Directors. All of the unvested common stock awards of the former members of the Board of Directors were forfeited upon their resignation. Pursuant to its proxy disclosure, Hudson has requested that the Company reimburse the expenses it incurred in connection with its proxy solicitation and has informed the Company that it is prepared to accept non-cash consideration for such reimbursement; the Board is considering Hudson’s request. No determination regarding the reimbursement or the possible amount of such reimbursement has been made at this time. Chief Executive Officer Resignation On May 10, 2020, Donald W. Layden, Jr., former Chief Executive Officer, agreed to resign his employment with the Company, effective as of May 8, 2020. Mr. Layden further agreed to resign from his position as a director on the Board of Directors of the Company (the “Board”), also effective as of May 8, 2020. The resignation was not the result of any disagreement Mr. Layden had with the Company on any matter relating to the Company’s operations, policies, and practices. Pursuant to a Separation Agreement and Release (the “Release”) entered into by and between Mr. Layden and the Company on May 10, 2020, Mr. Layden received no severance pay or other separation benefits in connection with his resignation. The Release provides that Mr. Layden will retain certain vested equity awards in accordance with the terms of the Release, and additionally provides releases of claims by Mr. Layden and, on a limited basis, by the Company. The Release also contains customary restrictive covenants, including perpetual confidentiality and non-disparagement covenants, and a one-year post-employment non-solicit of customers and employees. All of Mr. Layden's unvested common stock awards were forfeited upon his resignation. Appointment of New Chief Executive Officer On and effective as of May 8, 2020, the Board appointed Sean Feeney as its Chief Executive Officer. In connection with Mr. Feeney’s appointment as Chief Executive Officer, the Company entered into an employment agreement with Mr. Feeney, also dated and effective as of May 8, 2020 (the “Feeney Agreement”). On May 21, 2020, the Board appointed Mr. Feeney as a director of the Company. Pursuant to the Feeney Agreement, Mr. Feeney shall serve as Chief Executive Officer of the Company, reporting to the Board. The Feeney Agreement provides Mr. Feeney a base salary of $450,000 per year, and, commencing with the Company’s fiscal 2021 year, an annual cash bonus target opportunity each fiscal year equal to 100% of his base salary (up to a maximum of 150% of base salary), with any cash bonus earned based on the terms of the Company’s then-current annual incentive program (with a minimum bonus for fiscal 2021, only, equal to 50% of Mr. Feeney’s base salary). In addition, Mr. Feeney was awarded an initial inducement equity grant of 1,000,000 stock options, with an exercise price equal to the Company's closing price on May 8, 2020, subject to the terms of a Non-Qualified Stock Option Agreement, also dated as of May 8, 2020 (the “Option Agreement”). The stock options are eligible to vest as follows: (i) 50% of the options are eligible to vest in four equal annual installments on the first four anniversaries of the grant date, (ii) 12.5% of the options are eligible to vest on June 30, 2021, and (iii) an additional 12.5% of the options are eligible to vest on each of June 30, 2022, June 30, 2023, and June 30, 2024, subject to the achievement of performance goals for the fiscal year ending on each such date to be established by the Board, following consultation with Mr. Feeney, as soon as reasonably practicable following the commencement of the applicable fiscal year, and in each case subject to Mr. Feeney’s continued employment through the applicable vesting date. If at least 80% of the performance goals for an applicable fiscal year are achieved, the Compensation Committee may determine that the portion of the option eligible to vest in respect of such fiscal year will vest on a prorated basis. In addition, any of the stock options then-outstanding and unvested will immediately vest upon a “change of control,” as defined in the Feeney Agreement, subject to Mr. Feeney’s continued employment as of immediately prior to the “change of control.” Under the Feeney Agreement, if Mr. Feeney is terminated without “cause” or resigns for “good reason” (as each term is defined under the Feeney Agreement), then, subject to Mr. Feeney’s execution of a release of claims and continued compliance with the Feeney Agreement, Mr. Feeney will be provided with a severance package consisting of (i) 12 months of continued base salary, (ii) senior executive-level outplacement support for 12 months , and (iii) up to a 12-month COBRA subsidy. However, if such termination occurs within 24 months following a “change of control,” as defined in the Feeney Agreement, then Mr. Feeney will instead be provided a lump sum payment equal to the sum of his base salary and last annual bonus paid in the fiscal year completed prior to such termination. The Feeney Agreement contains customary restrictive covenants, including perpetual confidentiality, non-disparagement, and intellectual property covenants, as well as a non-compete, non-solicit of customers and suppliers, and non-solicit of employees (including a no-hire) that each apply during employment and for two years following any termination. COVID-19 A novel strain of coronavirus (COVID-19) was first identified in China in December 2019 and subsequently declared a global pandemic in March 2020 by the World Health Organization. COVID-19 containment measures began in parts of the United States in March 2020 resulting in forced closure of non-essential businesses and social distancing protocols. As a result, COVID-19 has impacted our business, significantly reducing foot traffic to distributed assets containing our electronic payment solutions and reducing discretionary spending by consumers. The Company did not observe meaningful reductions in processing volume until mid-March, when average daily processing volume decreased approximately 40% . By mid-April, processing volumes began to recover and have shown a steady improvement by approximately 30% over the mid-March levels. At this time we are unable to reasonably estimate the length of time that containment measures will be needed in the United States. Furthermore, even after containment measures are lifted there can be no assurance as to the time required to regain operations and sales at levels prior to the pandemic. In response to the outbreak and business disruption, first and foremost, we have prioritized the health and safety of our employees by implementing work-from-home measures while continuing to diligently serve our customers. Additionally, we have created an internal task force to lead measures to protect the business in light of the volatility and uncertainty caused by the COVID-19 pandemic, including ensuring the safety of our employees and our community by implementing work from home policies, conserving liquidity, evaluating cost saving actions, partnering with customers to position USAT for renewed growth post crisis, and pausing on international expansion. The liquidity conservation and cost savings initiatives include but are not limited to: a 20% salary reduction for the senior leadership team until December 2020; deferral of all cash-based director fees until calendar year 2021; a temporary furlough of about 10% of our employee base; negotiations with and concessions from vendors in regard to cost reductions and/or payment deferrals; an increased collection effort to reduce outstanding accounts receivables; and various supply chain/inventory improvements. Our supply chain network has not been significantly disrupted and we are continuously monitoring for the impact of COVID-19. Subsequent to March 31, 2020, in response to the outbreak, we have agreed to concessions regarding modifications to price and/or payment terms with certain customers who have been negatively impacted by COVID-19, and may negotiate additional concessions or other contract amendments regarding modifications to price and/or payment terms. We continue to monitor the rapidly evolving situation and guidance from federal, state and local public health authorities. As such, given the dynamic nature of this situation, the Company cannot reasonably estimate the impacts of COVID-19 on our financial condition, results of operations or cash flows in the future. The effects of COVID-19 are not significant to our financial statements for the quarter ended March 31, 2020. However, based on current trends and if the pandemic is not substantially contained in the near future, COVID-19 may have a material adverse impact on our revenue growth as well as our overall profitability for the quarter ended June 30, 2020 and beyond, and may lead to higher sales-related, inventory-related, and operating reserves. Further, a sustained downturn may also result in a decrease in the fair value of our goodwill or other intangible assets, causing them to exceed their carrying value. This may require us to recognize an impairment to those assets. Paycheck Protection Program Loan The Company has applied for, and has received, funds under the Paycheck Protection Program after the period end in the amount of $3.1 million . The application for these funds requires the Company to, in good faith, certify that the current economic uncertainty made the loan request necessary to support the ongoing operations of the Company. This certification further requires the Company to take into account our current business activity and our ability to access other sources of liquidity sufficient to support ongoing operations in a manner that is not significantly detrimental to the business. The receipt of these funds, and the forgiveness of the loan attendant to these funds, is dependent on the Company having initially qualified for the loan and qualifying for the forgiveness of such loan based on our future adherence to the forgiveness criteria. |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Accounting pronouncements adopted In February 2016, the FASB issued ASU 2016-02, Leases, which requires, among other items, lessees to recognize a right of use asset and a related lease liability for most leases on the balance sheet. Lessees and lessors are required to disclose quantitative and qualitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period and requires a modified retrospective application, with early adoption permitted. The Company adopted this new guidance on July 1, 2019, using the optional modified retrospective transition method applying the guidance to leases existing as of the effective date. The Company has determined that there was no cumulative effect adjustment to beginning retained earnings on the consolidated balance sheet. We will continue to report periods prior to July 1, 2019 in our financial statements under prior guidance as outlined in Topic 840. The Company’s adoption of ASU No. 2016-02 resulted in an increase in the Company’s assets and liabilities of approximately $3.9 million at July 1, 2019. The Company’s adoption of ASU No. 2016-02 did not have a material impact to the Company’s consolidated statements of operations or its consolidated statements of cash flows. Further, there was no impact on the Company’s covenant compliance under its current debt agreements as a result of the adoption of ASU No. 2016-02. The Company elected the package of practical expedients included in this guidance, which allowed it to not reassess: (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and, (iii) the initial direct costs for existing leases. From a lessee perspective, the Company elected the practical expedient related to treating lease and non-lease components as a single lease component for all leases as well as electing a policy exclusion permitting leases with an original lease term of less than one year to be excluded from the Right-of-Use (“ROU”) assets and lease liabilities. From a lessor perspective, the Company also elected the practical expedient related to treating lease and non-lease components as a single component for those leases where the timing and pattern of transfer for the non-lease component and associated lease component are the same and the stand-alone lease component would be classified as an operating lease if accounted for separately. The combined component is then accounted for under Topic 606 or Topic 842 depending on the predominant characteristic of the combined component. In June 2018, the FASB issued ASU No. 2018-07, “Compensation - Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting.” The standard simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under the ASU, most of the guidance on such payments to nonemployees would be aligned with the requirements for share-based payments granted to employees. The Company adopted this ASU on July 1, 2019, and its adoption did not have a material effect on the Company’s condensed consolidated financial statements. In July 2018, the FASB issued ASU No. 2018-09, “Codification Improvements”. These amendments provide clarifications and corrections to certain Accounting Standards Codification (“ASC”) subtopics including “Compensation - Stock Compensation - Income Taxes” (Topic 718-740), “Business Combinations - Income Taxes” (Topic 805-740) and “Fair Value Measurement - Overall” (Topic 820-10). The Company adopted this ASU on July 1, 2019, and its adoption did not have a material effect on the Company’s condensed consolidated financial statements. Accounting pronouncements to be adopted 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 condensed consolidated financial position, results of operations or cash flows. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326).” The new guidance changes the accounting for estimated credit losses pertaining to certain types of financial instruments including, but not limited to, trade and lease receivables. This pronouncement will be effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently evaluating and assessing the impact this guidance will have on its condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, “Intangibles—Goodwill and Other (Topic 350): Internal-Use Software.” This standard aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, which means that it will be effective for us in the first quarter of our fiscal year beginning July 1, 2020. The Company expects that the adoption of this ASU will not have a material impact on the Company’s condensed consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” ASU 2019-12 is intended to simplify accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and amends existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. The Company is currently evaluating and assessing the impact this guidance will have on its condensed consolidated financial statements. |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Assets and Liabilities | At March 31, 2020 , the Company has the following balances recorded in the balance sheet related to its lease arrangements: ($ in thousands) Classification As of March 31, 2020 Assets Operating leases Operating lease right-of-use assets $ 5,903 Finance leases Property and equipment, net 73 Liabilities Current: Operating leases Accrued expenses 1,082 Finance leases Finance lease obligations and current obligations under long-term debt 55 Non-current: Operating leases Operating lease liabilities, non-current 5,025 Finance leases Finance lease obligations and long-term debt, less current portion $ 24 |
Lease Costs | Components of lease cost are as follows: ($ in thousands) Three months ended March 31, 2020 Nine months ended March 31, 2020 Finance lease costs: Amortization of ROU assets $ 25 $ 79 Interest on lease assets 3 8 Operating lease costs* 515 1,970 Total $ 543 $ 2,057 * Includes short-term lease and variable lease costs, which are not material. Supplemental cash flow information and non-cash activity related to our leases are as follows: ($ in thousands) Nine months ended March 31, 2020 Supplemental cash flow information: Cash paid for amounts included in the measurement of lease liabilities Financing cash flows from finance leases $ 73 Operating cash flows from finance leases 9 Operating cash flows from operating leases 1,350 Non-cash activity Right-of-use assets obtained in exchange for lease obligations: Finance lease liabilities 12 Operating lease liabilities $ 3,384 Weighted-average remaining lease term and discount rate for our leases are as follows: Nine months ended March 31, 2020 Weighted-average remaining lease term (years) Finance leases 1.4 Operating leases 5.4 Weighted-average discount rate Finance leases 9.9 % Operating leases 6.8 % |
Maturities of Lease Liabilities, Financing Leases | Maturities of lease liabilities by fiscal year for our leases are as follows: ($ in thousands) Operating Leases Finance Leases Remainder of 2020 $ 384 $ 27 2021 1,440 46 2022 1,461 16 2023 1,493 2 2024 1,030 1 Thereafter 1,520 — Total lease payments $ 7,328 $ 92 Less: Imputed interest (1,221 ) (13 ) Present value of lease liabilities $ 6,107 $ 79 |
Maturities of Lease Liabilities, Operating Leases | Maturities of lease liabilities by fiscal year for our leases are as follows: ($ in thousands) Operating Leases Finance Leases Remainder of 2020 $ 384 $ 27 2021 1,440 46 2022 1,461 16 2023 1,493 2 2024 1,030 1 Thereafter 1,520 — Total lease payments $ 7,328 $ 92 Less: Imputed interest (1,221 ) (13 ) Present value of lease liabilities $ 6,107 $ 79 |
Schedule of Future Minimum Rental Payments for Operating Leases | The Company's future minimum lease commitments as of June 30, 2019, under ASC Topic 840, the predecessor to Topic 842, are as follows: ($ in thousands) Operating Leases Capital Leases 2020 $ 1,326 $ 106 2021 1,151 34 2022 1,180 12 2023 1,208 1 2024 859 1 Thereafter 1,550 — Total minimum lease payments $ 7,274 $ 154 Less: interest (14 ) Present value of minimum lease payments, net 140 Less: current obligations under capital leases (106 ) Obligations under capital leases, noncurrent $ 34 |
Schedule of Future Minimum Lease Payments for Capital Leases | The Company's future minimum lease commitments as of June 30, 2019, under ASC Topic 840, the predecessor to Topic 842, are as follows: ($ in thousands) Operating Leases Capital Leases 2020 $ 1,326 $ 106 2021 1,151 34 2022 1,180 12 2023 1,208 1 2024 859 1 Thereafter 1,550 — Total minimum lease payments $ 7,274 $ 154 Less: interest (14 ) Present value of minimum lease payments, net 140 Less: current obligations under capital leases (106 ) Obligations under capital leases, noncurrent $ 34 |
Property and Equipment Used for Operating Lease Rental Program | Property and equipment used for the operating lease rental program consisted of the following: ($ in thousands) March 31, June 30, Cost $ 32,572 36,190 Accumulated depreciation (27,664 ) (30,473 ) Net $ 4,908 $ 5,717 |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Performance Obligations | The following table reflects the estimated fees to be recognized in the future related to performance obligations that are unsatisfied at the end of the period: ($ in thousands) As of March 31, 2020 2020 $ 3,536 2021 12,668 2022 11,120 2023 8,524 2024 and thereafter 5,000 Total $ 40,848 |
Contract Liability | The Company’s contract liability (i.e., deferred revenue) balances are as follows: Three months ended March 31, Nine months ended March 31, ($ in thousands) 2020 2020 Deferred revenue, beginning of the period 1,629 1,681 Deferred revenue, end of the period 1,621 1,621 Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period 120 467 |
RESTRUCTURING_INTEGRATION COS_2
RESTRUCTURING/INTEGRATION COSTS (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve And Workforce Reduction Activities | The following table summarizes the Company’s severance activity for the three and six months ended December 31, 2019 related to the workforce reductions to integrate the Cantaloupe business: ($ in thousands) Workforce reduction Balance at July 1, 2019 $ 175 Plus: additions 26 Less: cash payments — Balance at September 30, 2019 $ 201 Plus: additions 9 Less: cash payments (210 ) Balance at December 31, 2019 $ — |
FINANCE RECEIVABLES (Tables)
FINANCE RECEIVABLES (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Finance Receivables | As of March 31, 2020 and June 30, 2019 finance receivables consist of the following: ($ in thousands) March 31, June 30, Current finance receivables, net $ 7,941 6,727 Finance receivables due after one year, net 11,541 12,642 Total finance receivables, net of allowance of $702 and $606, respectively $ 19,482 $ 19,369 |
Schedule of Credit Quality Indicators | At March 31, 2020 and June 30, 2019 , credit quality indicators consisted of the following: ($ in thousands) March 31, June 30, Performing $ 19,482 $ 19,369 Nonperforming 702 606 Total $ 20,184 $ 19,975 |
Schedule of Age Analysis of Past Due Finance Receivables | March 31, June 30, ($ in thousands) Deferred Payment Arrangements / Timing Other Finance Receivables Total Total Current $ 18,367 $ 353 $ 18,720 $ 19,133 0-30 days 37 103 140 190 31-60 days 193 44 237 49 61-90 days 34 36 70 146 Greater than 91 days 513 504 1,017 457 Total finance receivables (gross) $ 19,144 $ 1,040 $ 20,184 $ 19,975 |
Schedule of Cash To Be Collected On Performing Financing Receivable | March 31, June 30, ($ in thousands) Deferred Payment Arrangements / Timing Other Finance Receivables Total Total Current $ 18,367 $ 353 $ 18,720 $ 19,133 0-30 days 37 103 140 190 31-60 days 193 44 237 49 61-90 days 34 36 70 146 Greater than 91 days 513 504 1,017 457 Total finance receivables (gross) $ 19,144 $ 1,040 $ 20,184 $ 19,975 Cash to be collected on our performing finance receivables due for each of the fiscal years are as follows: |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule Of Basic Earnings Per Share And Diluted Earnings Per Share | The calculation of basic earnings (loss) per share (“EPS”) and diluted EPS are presented below: Three months ended March 31, ($ in thousands, except per share data) 2020 2019 Numerator for basic and diluted loss per share Net loss $ (9,295 ) $ (4,306 ) Preferred dividends (334 ) (334 ) Net loss applicable to common shareholders $ (9,629 ) (4,640 ) Denominator for basic loss per share - Weighted average shares outstanding 64,096,778 60,065,053 Effect of dilutive potential common shares — — Denominator for diluted loss per share - Adjusted weighted average shares outstanding 64,096,778 60,065,053 Basic loss per share $ (0.15 ) $ (0.08 ) Diluted loss per share $ (0.15 ) $ (0.08 ) Nine months ended March 31, ($ in thousands, except per share data) 2020 2019 Numerator for basic and diluted loss per share Net loss $ (29,181 ) $ (20,032 ) Preferred dividends (668 ) (668 ) Net loss applicable to common shareholders $ (29,849 ) $ (20,700 ) Denominator for basic loss per share - Weighted average shares outstanding 62,591,947 60,059,594 Effect of dilutive potential common shares — — Denominator for diluted loss per share - Adjusted weighted average shares outstanding 62,591,947 60,059,594 Basic loss per share $ (0.48 ) $ (0.34 ) Diluted loss per share $ (0.48 ) $ (0.34 ) |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Intangible Asset Balances | Intangible asset balances and goodwill consisted of the following: As of March 31, 2020 ($ in thousands) Gross Accumulated Amortization Net Amortization Period Intangible assets: Non-compete agreements $ 2 $ (2 ) $ — 2 years Brand and tradenames 1,695 (642 ) 1,053 3 - 7 years Developed technology 10,939 (4,649 ) 6,290 5 - 6 years Customer relationships 19,049 (2,574 ) 16,475 10 - 18 years Total intangible assets $ 31,685 $ (7,867 ) $ 23,818 Goodwill 63,945 — 63,945 Indefinite Total intangible assets & goodwill $ 95,630 $ (7,867 ) $ 87,763 As of June 30, 2019 ($ in thousands) Gross Accumulated Amortization Net Amortization Period Intangible assets: Non-compete agreements $ 2 $ (2 ) $ — 2 years Brand and tradenames 1,695 (470 ) 1,225 3 - 7 years Developed technology 10,939 (3,266 ) 7,673 5 - 6 years Customer relationships 19,049 (1,776 ) 17,273 10 - 18 years Total intangible assets $ 31,685 $ (5,514 ) $ 26,171 Goodwill 63,945 — 63,945 Indefinite Total intangible assets & goodwill $ 95,630 $ (5,514 ) $ 90,116 |
DEBT AND OTHER FINANCING ARRAN
DEBT AND OTHER FINANCING ARRANGEMENTS (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule Of Long-Term Debt Instruments | The Company's debt and other financing arrangements as of March 31, 2020 and June 30, 2019 consisted of the following: As of As of ($ in thousands) 2020 2019 Term Facility $ 15,000 $ — Revolving Credit Facility — 10,000 Term Loan — 1,458 Other, including finance lease obligations 423 1,323 Less: unamortized issuance costs and debt discount (2,745 ) (8 ) Total 12,678 12,773 Less: debt and other financing arrangements, current (381 ) (12,497 ) Debt and other financing arrangements, noncurrent $ 12,297 $ 276 Details of interest expense presented on the Condensed Consolidated Statements of Operations are as follows: Three months ended March 31, Nine months ended March 31, ($ in thousands) 2020 2019 2020 2019 Term Facility $ 542 $ — $ 921 $ — Revolving Credit Facility — 170 303 526 Term Loan — 456 160 1,158 Other interest expense 141 287 597 834 Total interest expense $ 683 $ 913 $ 1,981 $ 2,518 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Liabilities Measured on Recurring Basis | The following table provides a reconciliation for the opening and closing balances of the embedded derivative liability from October 31, 2019 to March 31, 2020 : ($ in millions) Balance at October 31, 2019 $ 1.5 Net change in fair value — Balance at December 31, 2019 1.5 Net change in fair value (1.1 ) Balance at March 31, 2020 $ 0.4 |
EQUITY (Tables)
EQUITY (Tables) | 9 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule Of Stock Option Granted Weighted Average Assumptions | The fair value of options granted during the nine months ended March 31, 2020 and 2019 was determined using the following assumptions: Nine months ended March 31, 2020 2019 Expected volatility (percent) 74.6% - 90.1% 58.4% - 70.9% Expected life (years) 3.5 - 4.5 4.5 Expected dividends 0.0 % 0.0 % Risk-free interest rate (percent) 1.4% - 1.6% 2.23% - 2.91% Number of options granted 340,760 420,000 Weighted average exercise price $ 6.85 $ 8.52 Weighted average grant date fair value $ 6.84 $ 4.27 |
Schedule Of Stock Based Compensation Related To The LTI Plans | Stock based compensation related to the LTI plans was as follows in the three and nine months ended March 31, 2020 and 2019 : Three months ended March 31, Nine months ended March 31, ($ in thousands) 2020 2019 2020 2019 FY20 LTI Plan $ (83 ) $ — $ 36 $ — FY18 LTI Plan 2 30 21 91 FY17 LTI Plan — 17 — 68 Total $ (81 ) $ 47 $ 57 $ 159 |
BUSINESS - Narrative (Details)
BUSINESS - Narrative (Details) - USD ($) | Oct. 31, 2019 | Oct. 09, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Apr. 30, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Jun. 30, 2019 |
Debt Instrument [Line Items] | ||||||||||||
Net earnings | $ (9,295,000) | $ (8,378,000) | $ (11,508,000) | $ (4,306,000) | $ (10,438,000) | $ (5,288,000) | $ (29,181,000) | $ (20,032,000) | ||||
Cash | 25,894,000 | 25,894,000 | $ 27,464,000 | |||||||||
Working capital surplus | 3,600,000 | |||||||||||
Current maturities | 11,500,000 | |||||||||||
Unamortized debt issuance expense | 2,745,000 | 2,745,000 | $ 8,000 | |||||||||
Sales tax liability and interest | 18,200,000 | $ 18,200,000 | ||||||||||
Amount to be paid | $ 2,600,000 | |||||||||||
Jpmorgan Chase Bank N.a | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Repayment of line of credit, net | $ 10,100,000 | |||||||||||
Term Loan | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Commitment fee | $ 100,000 | |||||||||||
Private Placement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Sale of stock (in shares) | 3,800,000 | |||||||||||
Sale of stock (in dollars per share) | $ 5.25 | |||||||||||
Offering proceeds, gross | $ 19,950,000 | |||||||||||
Cash placement fee | 1,200,000 | |||||||||||
Commitment Letter | Term Loan | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity | 30,000,000 | |||||||||||
Commitment fee | 1,200,000 | |||||||||||
Cash placement fee | $ 750,000 | |||||||||||
First draw | $ 15,000,000 | |||||||||||
Interest rate | 9.75% | |||||||||||
Prepayment premium | 80000000.00% | |||||||||||
Forecast | Commitment Letter | Subsequent Event | Term Loan | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Second draw | $ 15,000,000 | |||||||||||
Adjustments | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Net earnings | $ 200,000 | $ 1,500,000 |
ACCOUNTING POLICIES (Details)
ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jul. 01, 2019 | Jun. 30, 2019 |
Accounting Policies [Line Items] | |||
Assets | $ 179,724 | $ 183,375 | |
Liabilities | $ 72,153 | $ 65,814 | |
Accounting Standards Update 2016-02 | |||
Accounting Policies [Line Items] | |||
Assets | $ 3,900 | ||
Liabilities | $ 3,900 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | 9 Months Ended |
Mar. 31, 2020 | |
Lessor, Lease, Description [Line Items] | |
Lessor, sales-type lease term | 60 months |
Lessor, operating lease term | 36 months |
Minimum | |
Lessor, Lease, Description [Line Items] | |
Lease term | 1 year |
Maximum | |
Lessor, Lease, Description [Line Items] | |
Lease term | 8 years |
LEASES - Assets and Liabilities
LEASES - Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Assets | ||
Operating leases | $ 5,903 | $ 0 |
Finance leases | 73 | |
Liabilities | ||
Operating leases, accrued expense | 1,082 | |
Finance leases, capital lease obligations and current obligations under long-term debt | 55 | |
Operating lease liabilities, non-current | 5,025 | $ 0 |
Finance leases, capital lease obligations and long-term debt, less current portion | $ 24 |
LEASES - Components of Lease Co
LEASES - Components of Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Mar. 31, 2020 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Amortization of ROU assets | $ 25 | $ 79 |
Interest on lease assets | 3 | 8 |
Operating lease costs | 515 | 1,970 |
Total lease costs | $ 543 | $ 2,057 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) $ in Thousands | 9 Months Ended |
Mar. 31, 2020USD ($) | |
Leases [Abstract] | |
Financing cash flows from finance leases | $ 73 |
Operating cash flows from finance leases | 9 |
Operating cash flows from operating leases | 1,350 |
Right-of-use assets obtained in exchange for finance lease liabilities | 12 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 3,384 |
LEASES - Weighted-Average Remai
LEASES - Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate (Details) | Mar. 31, 2020 |
Leases [Abstract] | |
Weighted-average remaining lease term, Finance leases | 1 year 4 months 24 days |
Weighted-average remaining lease term, Operating leases | 5 years 4 months 24 days |
Weighted-average discount rate, Finance Leases | 9.90% |
Weighted-average discount rate, Operating leases | 6.80% |
LEASES - Maturities of Lease Li
LEASES - Maturities of Lease Liabilities (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Operating Leases | |
Remainder of 2020 | $ 384 |
2021 | 1,440 |
2022 | 1,461 |
2023 | 1,493 |
2024 | 1,030 |
Thereafter | 1,520 |
Total lease payments | 7,328 |
Less: Imputed interest | (1,221) |
Present value of lease liabilities | 6,107 |
Finance Leases | |
Remainder of 2020 | 27 |
2021 | 46 |
2022 | 16 |
2023 | 2 |
2024 | 1 |
Thereafter | 0 |
Total lease payments | 92 |
Less: Imputed interest | (13) |
Present value of lease liabilities | $ 79 |
LEASES - Future Minimum Lease P
LEASES - Future Minimum Lease Payments (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Operating Leases | |
2020 | $ 1,326 |
2021 | 1,151 |
2022 | 1,180 |
2023 | 1,208 |
2024 | 859 |
Thereafter | 1,550 |
Total minimum lease payments | 7,274 |
Capital Leases | |
2020 | 106 |
2021 | 34 |
2022 | 12 |
2023 | 1 |
2024 | 1 |
Thereafter | 0 |
Total minimum lease payments | 154 |
Less: interest | (14) |
Present value of minimum lease payments, net | 140 |
Less: current obligations under capital leases | (106) |
Obligations under capital leases, noncurrent | $ 34 |
LEASES - Property and Equipment
LEASES - Property and Equipment Costs (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Property, Plant and Equipment [Line Items] | ||
Net | $ 8,293 | $ 9,590 |
Assets Leased to Others | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 32,572 | |
Accumulated depreciation | (27,664) | |
Net | $ 4,908 | |
Cost | 36,190 | |
Accumulated depreciation | (30,473) | |
Net | $ 5,717 |
REVENUE - Additional Informatio
REVENUE - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2020USD ($) | Mar. 31, 2020USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Capitalized costs, amortization | $ 0.1 | $ 0.4 |
Minimum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Performance obligation, contractual term | 36 months | |
Maximum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Performance obligation, contractual term | 60 months | |
Prepaid Expenses and Other Current Assets | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Capitalized costs | 0.3 | $ 0.3 |
Other Noncurrent Assets | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Capitalized costs | $ 1.7 | $ 1.7 |
REVENUE - Performance Obligatio
REVENUE - Performance Obligations (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Performance obligation | $ 40,848 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligation | $ 3,536 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligation | $ 12,668 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligation | $ 11,120 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligation | $ 8,524 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligation | $ 5,000 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation, period |
REVENUE - Contract Liability (D
REVENUE - Contract Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | ||||
Deferred revenue | $ 1,621 | $ 1,621 | $ 1,629 | $ 1,681 |
Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period | $ 120 | $ 467 |
RESTRUCTURING_INTEGRATION COS_3
RESTRUCTURING/INTEGRATION COSTS - Additional Information (Details) - USD ($) | Oct. 17, 2019 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2018 |
Restructuring and Related Activities [Abstract] | ||||
Severance Costs | $ 400,000 | |||
Restructuring charges | $ 9,000 | $ 26,000 | $ 2,100,000 |
RESTRUCTURING_INTEGRATION COS_4
RESTRUCTURING/INTEGRATION COSTS - Workforce Reduction Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2018 | |
Restructuring Reserve [Roll Forward] | |||
Beginning balance | $ 201 | $ 175 | |
Plus: additions | 9 | 26 | $ 2,100 |
Less: cash payments | (210) | 0 | |
Ending balance | $ 0 | $ 201 |
FINANCE RECEIVABLES FINANCE REC
FINANCE RECEIVABLES FINANCE RECEIVABLES - Narrative (Details) | 9 Months Ended |
Mar. 31, 2020payment | |
Receivables [Abstract] | |
Finance receivables, lease term | 60 months |
Payment terms | 60 |
FINANCE RECEIVABLES - Informati
FINANCE RECEIVABLES - Information Regarding Finance Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Receivables [Abstract] | ||
Current finance receivables, net | $ 7,941 | $ 6,727 |
Finance receivables due after one year, net | 11,541 | 12,642 |
Total finance receivables | 19,482 | 19,369 |
Finance receivable, allowance | $ 702 | $ 606 |
FINANCE RECEIVABLES - Credit Ri
FINANCE RECEIVABLES - Credit Risk Profile Based on Payment Activity (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total amounts to be collected | $ 20,184 | $ 19,975 |
Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total amounts to be collected | 19,482 | 19,369 |
Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total amounts to be collected | $ 702 | $ 606 |
FINANCE RECEIVABLES - Age Analy
FINANCE RECEIVABLES - Age Analysis of Past Due Finance Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Total | ||
Current | $ 18,720 | $ 19,133 |
Total finance receivables (gross) | 20,184 | 19,975 |
0-30 days | ||
Total | ||
Total past due | 140 | 190 |
31-60 days | ||
Total | ||
Total past due | 237 | 49 |
61-90 days | ||
Total | ||
Total past due | 70 | 146 |
Greater than 91 days | ||
Total | ||
Total past due | 1,017 | $ 457 |
Deferred Payment Arrangements / Timing | ||
Total | ||
Current | 18,367 | |
Total finance receivables (gross) | 19,144 | |
Deferred Payment Arrangements / Timing | 0-30 days | ||
Total | ||
Total past due | 37 | |
Deferred Payment Arrangements / Timing | 31-60 days | ||
Total | ||
Total past due | 193 | |
Deferred Payment Arrangements / Timing | 61-90 days | ||
Total | ||
Total past due | 34 | |
Deferred Payment Arrangements / Timing | Greater than 91 days | ||
Total | ||
Total past due | 513 | |
Other Finance Receivables | ||
Total | ||
Current | 353 | |
Total finance receivables (gross) | 1,040 | |
Other Finance Receivables | 0-30 days | ||
Total | ||
Total past due | 103 | |
Other Finance Receivables | 31-60 days | ||
Total | ||
Total past due | 44 | |
Other Finance Receivables | 61-90 days | ||
Total | ||
Total past due | 36 | |
Other Finance Receivables | Greater than 91 days | ||
Total | ||
Total past due | $ 504 |
FINANCE RECEIVABLES - Summary o
FINANCE RECEIVABLES - Summary of Finance receivables Fiscal Years (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Receivables [Abstract] | ||
2020 | $ 4,977 | |
2021 | 6,159 | |
2022 | 5,513 | |
2023 | 3,908 | |
2024 | 1,957 | |
Thereafter | 79 | |
Total amounts to be collected | 22,593 | |
Less: interest | (2,409) | |
Less: allowance for nonperforming receivables | (702) | $ (606) |
Total finance receivables | $ 19,482 | $ 19,369 |
EARNINGS (LOSS) PER SHARE - Cal
EARNINGS (LOSS) PER SHARE - Calculation of Earning Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator for basic and diluted earnings per share | ||||||||
Net loss | $ (9,295) | $ (8,378) | $ (11,508) | $ (4,306) | $ (10,438) | $ (5,288) | $ (29,181) | $ (20,032) |
Preferred dividends | (334) | (334) | (668) | (668) | ||||
Net loss applicable to common shares | $ (9,629) | $ (4,640) | $ (29,849) | $ (20,700) | ||||
Denominator for basic loss per share - Weighted average shares outstanding (in shares) | 64,096,778 | 60,065,053 | 62,591,947 | 60,059,594 | ||||
Effect of dilutive potential common shares (in shares) | 0 | 0 | 0 | 0 | ||||
Denominator for diluted loss per share - Adjusted weighted average shares outstanding (in shares) | 64,096,778 | 60,065,053 | 62,591,947 | 60,059,594 | ||||
Basic loss per share (in dollars per share) | $ (0.15) | $ (0.08) | $ (0.48) | $ (0.34) | ||||
Diluted loss per share (in dollars per share) | $ (0.15) | $ (0.08) | $ (0.48) | $ (0.34) |
EARNINGS (LOSS) PER SHARE - Add
EARNINGS (LOSS) PER SHARE - Additional Information (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||||
Antidilutive shares excluded from the calculation of diluted earnings per shares (in shares) | 1,625,414 | 1,240,302 | 1,625,414 | 1,240,302 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Summary of Amortizable Intangible Asset (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Jun. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets gross | $ 31,685 | $ 31,685 |
Accumulated amortization | (7,867) | (5,514) |
Intangible assets, Net | 23,818 | 26,171 |
Goodwill, Gross | 63,945 | 63,945 |
Goodwill | 63,945 | 63,945 |
Intangible Assets, Net (Including Goodwill) [Abstract] | ||
Total intangible assets & goodwill, Gross | 95,630 | 95,630 |
Total intangible assets & goodwill, Net | 87,763 | 90,116 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets gross | 2 | 2 |
Accumulated amortization | (2) | (2) |
Intangible assets, Net | $ 0 | $ 0 |
Useful life | 2 years | 2 years |
Brand and tradenames | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets gross | $ 1,695 | $ 1,695 |
Accumulated amortization | (642) | (470) |
Intangible assets, Net | $ 1,053 | $ 1,225 |
Brand and tradenames | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 3 years | 3 years |
Brand and tradenames | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 7 years | 7 years |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets gross | $ 10,939 | $ 10,939 |
Accumulated amortization | (4,649) | (3,266) |
Intangible assets, Net | $ 6,290 | $ 7,673 |
Developed technology | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 5 years | 5 years |
Developed technology | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 6 years | 6 years |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets gross | $ 19,049 | $ 19,049 |
Accumulated amortization | (2,574) | (1,776) |
Intangible assets, Net | $ 16,475 | $ 17,273 |
Customer relationships | Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 10 years | 10 years |
Customer relationships | Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 18 years | 18 years |
GOODWILL AND INTANGIBLES - Add
GOODWILL AND INTANGIBLES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense of acquired intangible assets | $ 0.8 | $ 0.8 | $ 2.4 | $ 2.4 |
DEBT AND OTHER FINANCING ARRA_2
DEBT AND OTHER FINANCING ARRANGEMENTS - Debt and Other Financing Arrangement Summary (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jun. 30, 2019 |
Debt Instrument [Line Items] | ||
Term Facility | $ 15,000 | $ 0 |
Revolving Credit Facility | 0 | 10,000 |
Other, including finance lease obligations | 423 | 1,323 |
Less: unamortized issuance costs and debt discount | (2,745) | (8) |
Total | 12,678 | 12,773 |
Less: debt and other financing arrangements, current | (381) | (12,497) |
Debt and other financing arrangements, noncurrent | 12,297 | 276 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Term Loan | $ 0 | $ 1,458 |
DEBT AND OTHER FINANCING ARRA_3
DEBT AND OTHER FINANCING ARRANGEMENTS - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Debt Instrument [Line Items] | ||||
Total interest expense | $ 683 | $ 913 | $ 1,981 | $ 2,518 |
Term Facility | ||||
Debt Instrument [Line Items] | ||||
Total interest expense | 542 | 0 | 921 | 0 |
Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Total interest expense | 0 | 170 | 303 | 526 |
Term Loan | ||||
Debt Instrument [Line Items] | ||||
Total interest expense | 0 | 456 | 160 | 1,158 |
Other interest expense | ||||
Debt Instrument [Line Items] | ||||
Total interest expense | $ 141 | $ 287 | $ 597 | $ 834 |
DEBT AND OTHER FINANCING ARRA_4
DEBT AND OTHER FINANCING ARRANGEMENTS - Revolving Credit Facility and Term Loan (Details) - USD ($) | Oct. 31, 2019 | Oct. 09, 2019 | Nov. 09, 2017 | Mar. 31, 2019 | Apr. 30, 2021 | Mar. 31, 2020 | Mar. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 |
Debt Instrument [Line Items] | |||||||||
Extension fee | $ 200,000 | ||||||||
Repayments of debt | $ 20,000,000 | ||||||||
Debt premium | $ 1,040,000 | $ 286,000 | |||||||
Unamortized debt issuance expense | $ 2,745,000 | $ 8,000 | |||||||
Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 10,000,000 | ||||||||
Jpmorgan Chase Bank N.a | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayment of line of credit, net | $ 10,100,000 | ||||||||
Revolving Credit Facility | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate | 4.00% | ||||||||
Revolving Credit Facility | Jpmorgan Chase Bank N.a | Term Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, term | 5 years | ||||||||
Proceeds from revolving credit facility | $ 35,000,000 | ||||||||
Maximum borrowing capacity | 12,500,000 | ||||||||
Revolving Credit Facility | Heritage Bank Of Commerce | Loan And Security Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayment of line of credit, net | 7,200,000 | ||||||||
Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt issuance costs | $ 900,000 | ||||||||
Commitment fee | 100,000 | ||||||||
Debt premium | 2,100,000 | ||||||||
Term Loan | Jpmorgan Chase Bank N.a | Term Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Proceeds from revolving credit facility | 25,000,000 | ||||||||
Cantaloupe | |||||||||
Debt Instrument [Line Items] | |||||||||
Proceeds from revolving credit facility | $ 27,800,000 | ||||||||
Commitment Letter | Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | 30,000,000 | ||||||||
First draw | $ 15,000,000 | ||||||||
Commitment Termination Fee, Percent | 3.00% | ||||||||
Interest rate | 9.75% | ||||||||
Prepayment premium | 80000000.00% | ||||||||
Commitment fee | $ 1,200,000 | ||||||||
Forecast | Subsequent Event | Commitment Letter | Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Second draw | $ 15,000,000 | ||||||||
Prior to December 31, 2020 | Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Prepayment premium | 5.00% | ||||||||
Between January 1, 2021 and December 31, 2021 | Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Prepayment premium | 3.00% | ||||||||
Between January 1, 2022 and December 31, 2022 | Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Prepayment premium | 1.00% | ||||||||
After January 1, 2023 | Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Prepayment premium | 0.00% | ||||||||
Minimum | Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Annual mandatory prepayment of excess cash flow | 0.00% | ||||||||
Maximum | Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Annual mandatory prepayment of excess cash flow | 75.00% |
DEBT AND OTHER FINANCING ARRA_5
DEBT AND OTHER FINANCING ARRANGEMENTS - Other Borrowings (Details) - Cantaloupe - USD ($) $ in Millions | Mar. 31, 2020 | Jun. 30, 2019 | Nov. 09, 2017 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 0.3 | $ 0.8 | $ 1.8 |
Notes Five Percent Due April 2020 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 0 | 0.2 | |
Interest rate | 5.00% | ||
Notes Ten Percent Due September 2021 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 0.3 | 0.4 | |
Interest rate | 10.00% | ||
Notes Twelve Percent Due December 2019 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 0.1 | ||
Interest rate | 12.00% |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Millions | Mar. 31, 2020USD ($) |
Antara | Level 3 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Long-term debt obligations, fair value | $ 16.1 |
FAIR VALUE MEASUREMENTS - Embe
FAIR VALUE MEASUREMENTS - Embedded Derivative Liability (Details) - Level 3 - Embedded Derivative Financial Instruments - USD ($) $ in Millions | 2 Months Ended | 3 Months Ended |
Dec. 31, 2019 | Mar. 31, 2020 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning balance | $ 1.5 | $ 1.5 |
Net change in fair value | 0 | (1.1) |
Ending balance | $ 1.5 | $ 0.4 |
INCOME TAXES - (Details)
INCOME TAXES - (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision (benefit) | $ (85) | $ 23 | $ 46 | $ 60 |
Unrecognized income tax benefit | $ 200 | $ 200 |
EQUITY - Warrants (Details)
EQUITY - Warrants (Details) - $ / shares | Mar. 31, 2020 | Jun. 30, 2019 |
Equity [Abstract] | ||
Warrants outstanding (in shares) | 23,978 | 23,978 |
Warrants exercisable price (in dollars per share) | $ 5 | $ 5 |
EQUITY - Stock options (Detail)
EQUITY - Stock options (Detail) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
Nov. 30, 2019$ / sharesshares | Oct. 31, 2019$ / sharesshares | Sep. 30, 2018employee$ / sharesshares | Aug. 31, 2017$ / sharesshares | Jul. 31, 2017employeeshares | Mar. 31, 2020USD ($) | Dec. 31, 2019shares | Mar. 31, 2019USD ($) | Mar. 31, 2020USD ($)shares | Mar. 31, 2019USD ($)shares | Nov. 22, 2019employee | Nov. 01, 2019employee | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock-based compensation | $ | $ (81) | $ 47 | $ 57 | $ 159 | ||||||||
Stock options | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock options valuation method | Black-Scholes valuation model | |||||||||||
Stock options granted (in shares) | 400,000 | 340,760 | 420,000 | |||||||||
Number of employees | employee | 102 | 11 | 11 | |||||||||
Exercise price (in dollars per share) | $ / shares | $ 8.75 | |||||||||||
Stock-based compensation | $ | $ 100 | $ 200 | $ 1,500 | $ 600 | ||||||||
Employee | Stock options | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock options granted (in shares) | 110,000 | 135,000 | ||||||||||
Number of employees | employee | 11 | |||||||||||
Exercise price (in dollars per share) | $ / shares | $ 6.28 | |||||||||||
Employee | Stock options | Tranche One | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 0.33% | 0.33% | 0.33% | |||||||||
Employee | Stock options | Tranche Two | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 0.33% | 0.33% | 0.33% | |||||||||
Employee | Stock options | Tranche Three | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 0.33% | 0.33% | 0.33% | |||||||||
Chief Executive Officer (CEO) | Stock options | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock options granted (in shares) | 225,000 | 19,047 | ||||||||||
Exercise price (in dollars per share) | $ / shares | $ 7.18 | $ 5.25 | ||||||||||
Exercised (in shares) | 274,267 | |||||||||||
Chief Financial Officer (CFO) | Stock options | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock options granted (in shares) | 25,000 | |||||||||||
Exercise price (in dollars per share) | $ / shares | $ 5.25 | |||||||||||
Chief Financial Officer (CFO) | Stock options | Tranche One | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 0.33% | |||||||||||
Chief Financial Officer (CFO) | Stock options | Tranche Two | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 0.33% | |||||||||||
Chief Financial Officer (CFO) | Stock options | Tranche Three | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 0.33% |
EQUITY - Schedule of Fair value
EQUITY - Schedule of Fair value of options (Details) - Stock options - $ / shares | 1 Months Ended | 9 Months Ended | |
Sep. 30, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (years) | 4 years 6 months | ||
Expected dividends | 0.00% | 0.00% | |
Number of options granted (in shares) | 400,000 | 340,760 | 420,000 |
Weighted average exercise price (in dollars per share) | $ 6.85 | $ 8.52 | |
Weighted average grant date fair value (in dollars per share) | $ 6.84 | $ 4.27 | |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility (percent) | 74.60% | 58.40% | |
Expected life (years) | 3 years 6 months | ||
Risk-free interest rate (percent) | 1.40% | 2.23% | |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility (percent) | 90.10% | 70.90% | |
Expected life (years) | 4 years 6 months | ||
Risk-free interest rate (percent) | 1.60% | 2.91% |
EQUITY - Common Stock (Details)
EQUITY - Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 28, 2020 | Nov. 22, 2019 | Oct. 16, 2019 | Oct. 09, 2019 | Jul. 02, 2018 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||||||
Allocation to equity | $ 17,900 | ||||||||
Issuance fees | $ 1,100 | ||||||||
Non-cash stock based compensation | $ 2,453 | $ 1,393 | |||||||
Individual Non-employee Director | Common Stock | |||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||||||
Shares granted (in shares) | 13,216 | 6,677 | |||||||
Non Employee Director | Common Stock | |||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||||||
Shares granted (in shares) | 21,556 | 118,944 | 40,062 | ||||||
Award vesting period | 2 years | ||||||||
Non-cash stock based compensation | $ 400 | $ 100 | $ 900 | $ 400 | |||||
Employee | Common Stock | |||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||||||
Shares granted (in shares) | 104,500 | ||||||||
Chief Executive Officer | Common Stock | |||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||||||
Shares granted (in shares) | 186,916 | ||||||||
Non-Employee Director, Kelly Kay | Common Stock | |||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||||||
Shares granted (in shares) | 10,778 | ||||||||
Vesting percentage | 100.00% | ||||||||
Non-Employee Director, Sunil Sabharwal | Common Stock | |||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||||||
Shares granted (in shares) | 10,778 | ||||||||
Vesting percentage | 100.00% | ||||||||
Chief Financial Officer | Common Stock | |||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||||||
Shares granted (in shares) | 16,767 | ||||||||
Chief Accounting Officer | Common Stock | |||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||||||
Shares granted (in shares) | 8,982 | ||||||||
Private Placement | |||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||||||
Sale of stock (in shares) | 3,800,000 | ||||||||
Sale of stock (in dollars per share) | $ 5.25 | ||||||||
Offering proceeds, gross | $ 19,950 | ||||||||
Tranche One | Common Stock | |||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||||||
Vesting percentage | 0.25% | 0.33% | |||||||
Tranche One | Employee | Common Stock | |||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||||||
Vesting percentage | 0.33% | ||||||||
Tranche One | Chief Financial Officer | Common Stock | |||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||||||
Vesting percentage | 0.33% | ||||||||
Tranche One | Chief Accounting Officer | Common Stock | |||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||||||
Vesting percentage | 0.33% | ||||||||
Tranche Two | Common Stock | |||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||||||
Vesting percentage | 0.25% | 0.33% | |||||||
Tranche Two | Employee | Common Stock | |||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||||||
Vesting percentage | 0.33% | ||||||||
Tranche Two | Chief Financial Officer | Common Stock | |||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||||||
Vesting percentage | 0.33% | ||||||||
Tranche Two | Chief Accounting Officer | Common Stock | |||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||||||
Vesting percentage | 0.33% | ||||||||
Tranche Three | Common Stock | |||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||||||
Vesting percentage | 0.25% | 0.33% | |||||||
Tranche Three | Employee | Common Stock | |||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||||||
Vesting percentage | 0.33% | ||||||||
Tranche Three | Chief Financial Officer | Common Stock | |||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||||||
Vesting percentage | 0.33% | ||||||||
Tranche Three | Chief Accounting Officer | Common Stock | |||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||||||
Vesting percentage | 0.33% | ||||||||
Tranche Four | Common Stock | |||||||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||||||||
Vesting percentage | 0.25% |
EQUITY - Schedule of Long Term
EQUITY - Schedule of Long Term Incentive Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ (81) | $ 47 | $ 57 | $ 159 |
FY20 LTI Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | (83) | 0 | 36 | 0 |
FY18 LTI Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 2 | 30 | 21 | 91 |
FY17 LTI Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 0 | $ 17 | $ 0 | $ 68 |
EQUITY - Long Term Incentive Pl
EQUITY - Long Term Incentive Plans (Details) - Executive Officers - Fiscal Year 2020 Long-Term Stock Incentive Plan | 1 Months Ended |
Oct. 31, 2019 | |
Total Number of Connections | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
LTI metrics | 40.00% |
LTI maximum payout | 150.00% |
Adjusted EBITDA (Year-Over-Year) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
LTI metrics | 60.00% |
Tranche One | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 0.33% |
Tranche Two | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 0.33% |
Tranche Three | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting percentage | 0.33% |
EQUITY EQUITY - Registration Ri
EQUITY EQUITY - Registration Rights Agreement (Details) $ in Millions | 1 Months Ended |
Jan. 31, 2020USD ($) | |
Equity [Abstract] | |
Termination of Registration Rights Agreement, payment | $ 1.2 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Other Leases - Additional Information (Details) - USD ($) $ in Millions | Feb. 27, 2020 | Mar. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Amount awarded to other party | $ 15.3 | |
Amount to be paid by insurance company | $ 12.7 | |
Amount to be paid | $ 2.6 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) | May 21, 2020 | May 08, 2020USD ($)number_of_vesting_installmentsshares | Apr. 15, 2020 | Mar. 15, 2020 | Mar. 31, 2020 | Jun. 24, 2020USD ($) |
Subsequent Event [Line Items] | ||||||
Average daily processing volume increase (decrease) | (40.00%) | |||||
Senior leadership team salary decrease, percentage | 20.00% | |||||
Temporary furlough, percentage of employee base | 10.00% | |||||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Average daily processing volume increase (decrease) | 30.00% | |||||
New Chief Executive Officer | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Base salary | $ 450,000 | |||||
Annual bonus percentage of salary for fiscal year 2021 | 50.00% | |||||
Stock options granted (in shares) | shares | 1,000,000 | |||||
Performance goals threshold triggering potential options vesting | 80.00% | |||||
Base salary severance pay period | 12 months | |||||
Senior executive-level output support period | 12 months | |||||
Termination period following change of control, triggering lump sum payment | 24 months | |||||
COBRA subsidy period | 12 months | |||||
Non-solicit period following employment termination | 2 years | |||||
New Chief Executive Officer | Tranche One | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Vesting percentage | 50.00% | |||||
Number of vesting installments | number_of_vesting_installments | 4 | |||||
New Chief Executive Officer | Tranche Two | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Vesting percentage | 12.50% | |||||
New Chief Executive Officer | Tranche Three | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Vesting percentage | 12.50% | |||||
New Chief Executive Officer | Minimum | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Annual bonus, percent of salary | 100.00% | |||||
New Chief Executive Officer | Maximum | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Annual bonus, percent of salary | 150.00% | |||||
Paycheck Protection Program Loan | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Long-term debt | $ 3,100,000 |
Uncategorized Items - q3-usatx2
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 200,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 200,000 |