Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Oct. 14, 2022 | Dec. 31, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K/A | ||
Document Annual Report | true | ||
Document Period End Date | Jun. 30, 2022 | ||
Current Fiscal Year End Date | --06-30 | ||
Document Transition Report | false | ||
Entity File Number | 001-33365 | ||
Entity Registrant Name | Cantaloupe, 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 | ||
Title of 12(b) Security | Common Stock, no par value | ||
Trading Symbol | CTLP | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 513.2 | ||
Entity Common Stock, Shares Outstanding | 71,218,130 | ||
Documents Incorporated by Reference | Selected portions of the registrant’s definitive proxy statement on Schedule 14A for the registrant’s 2023 annual meeting of stockholders, which will be filed with the Securities and Exchange Commission within 120 days of June 30, 2022, are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0000896429 | ||
Amendment Flag | true | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Description | The registrant’s Form 10-K filed with the SEC on October 19, 2022 did not include inline XBRL tagging, as a result of an administrative error. The sole purpose of this Amendment No. 1 to the registrant’s Form 10-K for the fiscal period ended June 30, 2022 is to add inline XBRL tagging to the Form 10-K in accordance with Rule 405 of Regulation S-T.No changes have been made to the registrant’s Form 10-K. This Amendment No. 1 does not reflect any subsequent events occurring after the original filing date of the Form 10-K or modify or update in any way disclosures made in the original filing. |
Audit Information
Audit Information | 12 Months Ended |
Jun. 30, 2022 | |
Audit Information [Abstract] | |
Auditor Name | BDO USA, LLP |
Auditor Location | Richmond, VA |
Auditor Firm ID | 243 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 68,125 | $ 88,136 |
Accounts receivable, net | 37,695 | 27,470 |
Finance receivables, net | 6,721 | 7,967 |
Inventory, net | 19,754 | 5,292 |
Prepaid expenses and other current assets | 4,285 | 2,414 |
Total current assets | 136,580 | 131,279 |
Non-current assets: | ||
Finance receivables due after one year, net | 14,727 | 11,632 |
Property and equipment, net | 12,784 | 5,570 |
Operating lease assets | 2,370 | 3,049 |
Intangibles, net | 17,947 | 19,992 |
Goodwill | 66,656 | 63,945 |
Other assets | 4,568 | 2,205 |
Total non-current assets | 119,052 | 106,393 |
Total assets | 255,632 | 237,672 |
Current liabilities: | ||
Accounts payable | 48,440 | 36,775 |
Accrued expenses | 28,154 | 26,460 |
Current obligations under long-term debt | 692 | 675 |
Deferred revenue | 1,893 | 1,763 |
Total current liabilities | 79,179 | 65,673 |
Long-term liabilities: | ||
Deferred income taxes | 186 | 179 |
Long-term debt, less current portion | 13,930 | 13,644 |
Operating lease liabilities, non-current | 2,366 | 3,645 |
Total long-term liabilities | 16,482 | 17,468 |
Total liabilities | 95,661 | 83,141 |
Commitments and contingencies (Note 18) | ||
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preferences of $22,115 and $21,447 at June 30, 2022 and 2021, respectively | 3,138 | 3,138 |
Shareholders’ equity: | ||
Preferred stock, no par value, 1,800,000 shares authorized | 0 | 0 |
Common stock, no par value, 640,000,000 shares authorized, 71,188,053 and 71,258,047 shares issued and outstanding at June 30, 2022 and 2021, respectively | 469,918 | 462,775 |
Accumulated deficit | (313,085) | (311,382) |
Total shareholders’ equity | 156,833 | 151,393 |
Total liabilities, convertible preferred stock and shareholders’ equity | $ 255,632 | $ 237,672 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Statement of Financial Position [Abstract] | ||
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 value | $ 22,115 | $ 21,447 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 1,800,000 | 1,800,000 |
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) | 71,188,053 | 71,258,047 |
Common stock, shares outstanding (in shares) | 71,188,053 | 71,258,047 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue | $ 205,202 | $ 166,939 | $ 163,153 |
Costs of sales | 141,007 | 112,913 | 116,880 |
Gross profit | 64,195 | 54,026 | 46,273 |
Operating expenses: | |||
Sales and marketing | 8,908 | 6,935 | 6,571 |
Technology and product development | 21,877 | 15,935 | 15,094 |
General and administrative | 30,519 | 35,754 | 40,083 |
Investigation, proxy solicitation and restatement expenses | 1,196 | 0 | 19,810 |
Depreciation and amortization | 4,352 | 4,107 | 4,307 |
Total operating expenses | 66,852 | 62,731 | 85,865 |
Operating loss | (2,657) | (8,705) | (39,592) |
Other income (expense): | |||
Interest income | 1,884 | 1,159 | 1,595 |
Interest expense | (524) | (4,013) | (2,597) |
Other income (expense) | (220) | 3,224 | 0 |
Total other income (expense), net | 1,140 | 370 | (1,002) |
Loss before income taxes | (1,517) | (8,335) | (40,594) |
Provision for income taxes | (186) | (370) | (1) |
Net loss | (1,703) | (8,705) | (40,595) |
Preferred dividends | (668) | (668) | (668) |
Net loss applicable to common shares | $ (2,371) | $ (9,373) | $ (41,263) |
Net loss per common share | |||
Basic (in USD per share) | $ (0.03) | $ (0.14) | $ (0.66) |
Diluted (in USD per share) | $ (0.03) | $ (0.14) | $ (0.66) |
Weighted average number of common shares outstanding used to compute net loss per share applicable to common shares | |||
Basic (in shares) | 71,091,790 | 67,002,438 | 62,980,193 |
Diluted (in shares) | 71,091,790 | 67,002,438 | 62,980,193 |
Subscription and transaction fees | |||
Revenue | $ 168,850 | $ 139,242 | $ 133,167 |
Costs of sales | 103,392 | 83,617 | 82,980 |
Equipment sales | |||
Revenue | 36,352 | 27,697 | 29,986 |
Costs of sales | $ 37,615 | $ 29,296 | $ 33,900 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Accumulated Deficit | Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment |
Beginning balance (in shares) at Jun. 30, 2019 | 60,008,481 | ||||
Beginning balance at Jun. 30, 2019 | $ 114,423 | $ 376,853 | $ (262,430) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 [Member] | ||||
Stock based compensation and exercises (in shares) | 752,808 | ||||
Stock-based compensation and exercises (net) | $ 3,110 | $ 3,110 | |||
Issuance of common stock in relation to private placement, net of offering costs incurred (in shares) | 3,800,000 | ||||
Issuance of common stock in relation to private placement, net of offering costs incurred | $ 16,777 | $ 16,777 | |||
Issuance of common stock to Hudson Executive Capital LP (in shares) | 635,593 | ||||
Issuance of common stock to Hudson Executive Capital LP | 4,500 | $ 4,500 | |||
Net loss | (40,595) | (40,595) | |||
Ending balance (in shares) at Jun. 30, 2020 | 65,196,882 | ||||
Ending balance at Jun. 30, 2020 | 98,215 | $ 348 | $ 401,240 | (303,025) | $ 348 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock based compensation and exercises (in shares) | 319,011 | ||||
Stock-based compensation and exercises (net) | 9,145 | $ 9,145 | |||
Issuance of common stock in relation to private placement, net of offering costs incurred (in shares) | 5,730,000 | ||||
Issuance of common stock in relation to private placement, net of offering costs incurred | $ 52,390 | $ 52,390 | |||
Exercise of warrants (in shares) | 12,154 | 12,154 | |||
Net loss | $ (8,705) | (8,705) | |||
Ending balance (in shares) at Jun. 30, 2021 | 71,258,047 | ||||
Ending balance at Jun. 30, 2021 | 151,393 | $ 462,775 | (311,382) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock based compensation and exercises (in shares) | 249,829 | ||||
Stock-based compensation and exercises (net) | 7,143 | $ 7,143 | |||
Retirement of common stock (in shares) | (319,823) | ||||
Net loss | (1,703) | (1,703) | |||
Ending balance (in shares) at Jun. 30, 2022 | 71,188,053 | ||||
Ending balance at Jun. 30, 2022 | $ 156,833 | $ 469,918 | $ (313,085) |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Offering costs incurred | $ 2,618 | $ 1,102 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | |||
Net loss | $ (1,703) | $ (8,705) | $ (40,595) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Stock-based compensation | 6,248 | 9,075 | 3,029 |
Amortization of debt issuance costs and discounts | 148 | 2,735 | 1,283 |
Reimbursement of shareholder proxy solicitation costs | 0 | 0 | 4,500 |
Provision for expected losses | 3,471 | 1,236 | 2,958 |
Provision for inventory reserve | (397) | 693 | 681 |
Depreciation and amortization included in operating expenses | 4,352 | 4,107 | 4,307 |
Depreciation included in cost of sales for rental equipment | 973 | 1,405 | 2,710 |
Property and equipment write-off | 0 | 1,658 | 0 |
Gain on extinguishment of debt | 0 | (3,065) | 0 |
Operating lease right-of-use asset impairment | 0 | 1,578 | 0 |
Other | 686 | 1,104 | 2,103 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (13,649) | (10,126) | 1,818 |
Finance receivables | (1,884) | (1,877) | 547 |
Inventory | (14,064) | 3,142 | 1,463 |
Prepaid expenses and other assets | (4,262) | (847) | (563) |
Accounts payable and accrued expenses | 12,153 | 7,013 | 2,988 |
Operating lease liabilities | (907) | (1,014) | (1,384) |
Deferred revenue | 130 | 65 | 16 |
Net cash (used in) provided by operating activities | (8,705) | 8,177 | (14,139) |
Cash flows from investing activities: | |||
Purchase of property and equipment | (9,260) | (1,838) | (2,538) |
Cash paid for acquisition | (2,966) | 0 | 0 |
Proceeds from sale of property and equipment | 0 | 10 | 44 |
Net cash used in investing activities | (12,226) | (1,828) | (2,494) |
Cash flows from financing activities: | |||
Proceeds from long-term debt issuance by Antara, net of issuance costs paid to Antara | 0 | 0 | 14,248 |
Proceeds from equity issuance by Antara, net of issuance costs paid to Antara | 0 | 0 | 17,879 |
Proceeds from PPP Loan | 0 | 0 | 3,065 |
Payment of third-party debt issuance costs | (107) | 0 | (1,980) |
Proceeds from long-term debt issuance by JPMorgan Chase Bank, N.A., net of debt issuance costs | 738 | 14,550 | 0 |
Repayment of long-term debt | (606) | (15,744) | (2,522) |
Proceeds from (repayments of) Revolving Credit Facility | 0 | 0 | (10,000) |
Proceeds from private placement | 0 | 55,008 | 0 |
Payment of equity issuance costs | 0 | (2,618) | 0 |
Payment of Antara prepayment penalty and commitment termination fee | 0 | (1,200) | 0 |
Proceeds from exercise of common stock options | 895 | 78 | 192 |
Net cash provided by financing activities | 920 | 50,074 | 20,882 |
Net (decrease) increase in cash and cash equivalents | (20,011) | 56,423 | 4,249 |
Cash and cash equivalents at beginning of year | 88,136 | 31,713 | 27,464 |
Cash and cash equivalents at end of year | 68,125 | 88,136 | 31,713 |
Supplemental disclosures of cash flow information: | |||
Interest paid in cash | $ 755 | $ 1,055 | $ 1,314 |
BUSINESS
BUSINESS | 12 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BUSINESS | BUSINESS Cantaloupe, Inc., previously known as USA Technologies, Inc., is organized under the laws of the Commonwealth of Pennsylvania. We are a digital payments and software services company that provides end-to-end technology solutions for the unattended retail market. We are transforming the unattended retail world by offering a single platform for self-service commerce which includes integrated payments processing and software solutions that handle inventory management, pre-kitting, route logistics, warehouse and back-office management. Our enterprise-wide platform is designed to increase consumer engagement and sales revenue through digital payments, digital advertising and customer loyalty programs, while providing retailers with control and visibility over their operations and inventory. As a result, customers ranging from vending machine companies to operators of micro-markets, car wash, electric vehicle charging stations, commercial laundry, kiosks, amusements and more, can run their businesses more proactively, predictably, and competitively. Impact of COVID-19 The Company, its employees, and its customers operate in geographic locations in which its business operations and financial performance continues to be affected by the COVID-19 pandemic. While businesses, schools and other organizations re-open, which has led to increased foot-traffic to distributed assets containing our electronic payment solutions, the emergence of new strains and variants and resurgence of the virus, such as the outbreak of the Omicron variant in early calendar year 2022, have and may in the future lead to additional shutdowns and closures that impact our operations and financial results. Such impacts to our financial statements have in the past included, and may in the future include the impairment of goodwill and intangible assets, impairment of long-lived assets including operating lease assets, property and equipment and allowance for doubtful accounts for accounts and finance receivables. We have concluded that there are no material impairments as a result of our evaluation for the year ended June 30, 2022. Where applicable, we have incorporated judgments and estimates of the expected impact of COVID-19 in the preparation of the financial statements based on information currently available. These judgments and estimates may change, as new events develop and additional information is obtained, and are recognized in the consolidated financial statements as soon as they become known. |
ACCOUNTING POLICIES
ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
ACCOUNTING POLICIES | ACCOUNTING POLICIES CONSOLIDATION The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. BASIS OF PRESENTATION AND PREPARATION The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). All intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, all adjustments considered necessary for a fair presentation, consisting of normal recurring adjustments, have been included. The Company operates as one operating segment because its chief operating decision maker, who is the Chief Executive Officer, reviews its financial information on a consolidated basis for purposes of making decisions regarding allocating resources and assessing performance. Consolidated Statements of Operations: operating expenses presentation Beginning in fiscal year 2022, the Company revised its presentation of operating expenses within its Consolidated Statements of Operations by disaggregating the previously disclosed Selling, general, and administrative costs into Sales and marketing, Technology and product development, and General and administrative costs. The updated presentation is intended to provide additional transparency to the readers of the financial statements and better align the Company’s financial performance with how management views and monitors business operations and makes strategic decisions. Prior period amounts for fiscal year 2021 and 2020 have been reclassified to conform with current year presentation. Below is a brief description of the various categories within Operating expenses: • Sales and marketing: Sales and marketing expenses consist primarily of our sales and marketing team personnel costs which include non-capitalized wages, bonuses, stock-based compensation, sales commissions, severance costs, benefits, and employer taxes. In addition, this category includes fees paid for advertising, trade shows and external consultants who assist in outreach initiatives designed to build brand awareness and showcase the value of our products and services to our opportunity markets. • Technology and product development: Technology and product development expenses consist primarily of our technology and product team personnel costs and fees paid to external consultants relating to innovating and maintaining our portfolio of products and services and strengthening our network environment and platform. These costs include but are not limited to engineering, platform and software development, fees for software licenses, contract labor and other technology and product related items. • General, and administrative: General and administrative expenses consist primarily of our customer support, business operations, finance, legal, human resources and other administrative personnel costs and fees paid to external consultants for these respective departments. In addition, this category includes rent and occupancy costs and other miscellaneous costs incurred in the course of operating the business. • Depreciation and amortization: No changes made to the accounting policies or previously reported amounts included within the Company’s June 30, 2021 Annual Report on Form 10-K for this category. Depreciation expense on our property and equipment, excluding property and equipment used for rentals, and amortization expense on our intangible assets are included within the Depreciation and amortization caption in the Consolidated Statements of Operations. The presentation changes described above did not impact total operating expenses, operating loss, net loss or net loss per common share. Consolidated Statements of Operations: updated caption Beginning in fiscal year 2022, the Company revised the previously reported revenue caption of License and transaction fees to Subscription and transaction fees within its Consolidated Statements of Operations to provide a more accurate description of the revenue stream and align with commonly used terminology by industry participants. No changes were made to the revenue recognition accounting policies or previously reported amounts included within the Company’s June 30, 2021 Annual Report on Form 10-K. USE OF ESTIMATES The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, assumptions and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. The Company evaluates these estimates on an ongoing basis. Estimates, judgments, and assumptions in these consolidated financial statement include, but are not limited to, those related to revenue recognition, capitalization of internal-use software and cloud computing arrangements, evaluation of goodwill and long-lived assets impairment, allowances for accounts and finance receivables, inventory reserves, loss contingencies, income taxes, deferred income tax assets and liabilities, and sales tax reserve. CASH AND CASH EQUIVALENTS Cash equivalents represent all highly liquid investments with original maturities of three months or less from time of purchase. Cash equivalents are comprised of money market funds. The Company maintains its cash in bank deposit accounts where accounts may exceed federally insured limits at times. The Company deems this credit risk not to be significant as cash is held at well-capitalized financial institutions in the U.S. ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS Accounts receivable include amounts due to the Company for sales of equipment, other amounts due from customers, merchant service receivables, contract manufacturers, and unbilled amounts due from customers, net of the allowance for uncollectible accounts. The Company maintains an allowance for doubtful accounts for losses resulting from the inability of its customers to make required payments, including from a shortfall in the customer transaction fund flow from which the Company would normally collect amounts due. The provision for doubtful accounts relating to Accounts receivable balances is recorded within general and administrative expenses in the Consolidated Statements of Operations. The allowance is calculated under an expected loss model. We estimate our allowance using an aging analysis of the receivables balances, primarily based on historical loss experience, as there have been no significant changes in the mix or risk characteristics of the receivable revenue streams used to calculate historical loss rates. We also take into consideration that receivables for monthly service fees that are collected as part of the flow of funds from our transaction processing service have a lower risk profile than receivables for equipment and service fees billed under the Company’s standard payment terms of 30 to 60 days from invoice issuance, and adjust our aging analysis to incorporate those risk assessments. Accounts receivables are considered past due if the invoices are not collected based on the respective standard payment terms as agreed to with the customers. Current conditions are analyzed at each measurement date as we reassess whether our receivables continue to exhibit similar risk characteristics as the prior measurement date, and determine if the reserve calculation needs to be adjusted for new developments, such as a customer’s inability to meet its financial obligations. Lastly, we also factor reasonable and supportable economic expectations into our allowance estimate for the asset’s entire expected life. The Company writes off receivable balances against the allowance for doubtful accounts when management determines the balance is uncollectible and the Company ceases collection efforts. For the year ended June 30, 2022, the Company experienced increased write-offs compared to the year ended June 30, 2021, as management determined collection of older aged accounts receivable balances was not probable. These older aged accounts receivables balances were predominantly reserved for already as part of the Company's allowance for doubtful accounts estimate. Estimating an allowance requires us to apply judgment in relying on historical customer payment experience, regularly analyzing the financial condition of our customers, and developing macroeconomic forecasts to adequately cover expected credit losses on our receivables. By nature, such estimates are highly subjective, and it is possible that the amount of accounts receivables that we are unable to collect may be different than the amounts initially estimated in the allowance. FINANCE RECEIVABLES The Company offers extended payment terms to certain customers for equipment sales under its Quick Start Program. Agreements under the Quick Start Program are accounted for as sales-type leases. Accordingly, the discounted future minimum lease payments are classified as finance receivables in the Company’s Consolidated Balance Sheets. Finance receivables or Quick Start leases are generally for a sixty month Finance receivables are carried at their contractual amount net of allowance for doubtful accounts. On July 1, 2020, we adopted Topic 326. The effects of implementation of this standard is discussed below under "Measurement of Credits Losses on Financial Instruments". The provision for doubtful accounts relating to Finance receivables is recorded within general and administrative expenses in the Consolidated Statements of Operations. The allowance is calculated under an expected loss model. We estimate our allowance utilizing historical experience of payment performance, current conditions of the customer, and reasonable and supportable economic forecasts of collectability for the asset’s entire expected life, which is generally a sixty month Estimating an allowance requires us to apply judgment in relying on historical customer payment experience, regularly analyzing the financial condition of our customers, and developing macroeconomic forecasts to adequately cover expected credit losses on our receivables. By nature, such estimates are highly subjective, and it is possible that the amount of finance receivables that we are unable to collect may be different than the amounts initially estimated in the allowance. INVENTORY, NET Inventory consists of finished goods. The company's inventories are valued at the lower of cost or net realizable value, generally using a weighted-average cost method. The Company establishes allowances for slow-moving inventory based upon quality considerations and assumptions about future demand and market conditions. The allowance is recorded within Cost of equipment sales in our Consolidated Statements of Operations. The inventory reserve was $2.5 million and $3.5 million for the years ended June 30, 2022 and 2021, respectively. PROPERTY AND EQUIPMENT, NET Property and equipment are recorded at either cost or, in the instance of an acquisition, the estimated fair value on the date of the acquisition, and are depreciated on a straight-line basis over the estimated useful lives of the related assets. Leasehold improvements are amortized on the straight-line basis over the lesser of the estimated useful life of the asset or the respective lease term. Depreciation expense on our property and equipment, excluding property and equipment used for rentals, is included in “Depreciation and amortization” in the Consolidated Statements of Operations. Depreciation expense on our property and equipment used for rentals is included in “Cost of Subscription and transaction fees” in the Consolidated Statements of Operations. Additions and improvements that extend the estimated lives of the assets are capitalized, while expenditures for repairs and maintenance are expensed as incurred. GOODWILL The Company’s goodwill represents the excess of cost over fair value of the net assets purchased in acquisitions. Goodwill is not amortized to earnings, but instead is subject to periodic testing for impairment. We test goodwill for impairment at least annually, or more frequently if events or changes in circumstances indicate that impairment may have occurred. Goodwill is reviewed for impairment utilizing either a qualitative or a quantitative goodwill impairment test. When we perform a qualitative assessment and determine the fair value more likely than not exceeds the carrying value, no further evaluation is necessary. When we perform the quantitative goodwill impairment test, we compare the fair value of our reporting unit to its carrying value. If the fair value of the reporting unit exceeds its carrying value, then goodwill is not considered impaired. An impairment charge is recognized for the amount by which, if any, the carrying value exceeds the reporting unit’s fair value. However, the loss recognized cannot exceed the reporting unit’s goodwill balance. The quantitative impairment test process requires valuation of the reporting unit, which we determine using the income approach, the market approach or a combination of the two approaches. Under the income approach, we calculate the fair value of the reporting unit based on the present value of estimated future cash flows derived from assumptions that include expected growth rates and revenues, projected expenses, discount rates, capital expenditures and income tax rates. Under the market approach, we estimate the fair value based on the quoted stock price, recent equity transactions of our business, market transactions involving similar businesses and market comparables. The Company has selected April 1 as its annual test date. The Company has concluded there has been no impairment of goodwill during the years ended June 30, 2022, 2021, or 2020. Subsequent to our annual impairment test, no indicators of impairment were identified. INTANGIBLE AND LONG-LIVED ASSETS The Company's intangible assets include trademarks, non-compete agreements, brand, developed technology, customer relationships and tradenames and were acquired in a purchase business combination. The Company carries these intangibles at cost, less accumulated amortization. Amortization is recorded on a straight-line basis over the estimated useful lives of the respective assets, which span between three There were no indefinite-lived intangible assets at June 30, 2022 or 2021. The Company reviews its finite-lived intangible and other long-lived assets whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The carrying amount of an asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Fair value of finite-lived intangible assets and property and equipment is based on various valuation techniques. If the carrying amount of an asset or group of assets exceeds its net realizable value, the asset will be written down to its fair value. The Company has concluded that the carrying amount of intangible assets is recoverable as of June 30, 2022 and 2021. The Company recorded an impairment charge relating to our right-of-use assets of $1.6 million for the year ended June 30, 2021. FAIR VALUE OF FINANCIAL INSTRUMENTS 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. CONCENTRATION OF RISKS Concentration of revenue with customers subject the Company to operating risks. Approximately 14%, 16% and 16% of the Company’s revenue for the years ended June 30, 2022, 2021 and 2020, respectively, were concentrated with one customer. The Company’s customers are principally located in the United States. Accounts receivable from one single contract manufacturer represented 16% and 5% of accounts receivables, net of allowance, as of June 30, 2022 and 2021, respectively. REVENUE RECOGNITION The revenue recognition guidance provides a single model to determine when and how revenue is recognized. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of control of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company recognizes revenue using a five-step model resulting in revenue being recognized as performance obligations within a contract have been satisfied. The steps within that model include: (i) identifying the existence of a contract with a customer; (ii) identifying the performance obligations within the contract; (iii) determining the contract’s transaction price; (iv) allocating the transaction price to the contract’s performance obligations; and, (v) recognizing revenue as the contract’s performance obligations are satisfied. Judgment is required to apply the principles-based, five-step model for revenue recognition. Management is required to make certain estimates and assumptions about the Company’s contracts with its customers, including, among others, the nature and extent of its performance obligations, its transaction price amounts and any allocations thereof, the events which constitute satisfaction of its performance obligations, and when control of any promised goods or services is transferred to its customers. The standard also requires certain incremental costs incurred to obtain or fulfill a contract to be deferred and amortized on a systematic basis consistent with the transfer of goods or services to the customer. The Company provides an end-to-end payment solution which integrates hardware, software, and payment processing in the unattended retail market. The Company has contractual agreements with customers that set forth the general terms and conditions of the relationship, including pricing of goods and services, payment terms and contract duration. Revenue is recognized when the obligation under the terms of the Company’s contract with its customer is satisfied and is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. The Company’s business model is to act as the Merchant of Record for its sellers. We provide cashless vending payment services in exchange for monthly service fees, in addition to collecting usage-based consideration for completed transactions. The contracts we enter into with third-party suppliers provide us with the right to access and direct their services when processing a transaction. The Company combines the services provided by third-party suppliers to enable customers to accept cashless payment transactions, indicating that it controls all inputs in directing their use to create the combined service. Additionally, the Company sells cashless payment devices (e.g., e-Ports, Seed), which are either directly sold or leased through the Company's QuickStart or Cantaloupe ONE programs. The Company recognizes fees charged to our customers primarily on a gross basis as transaction revenue when we are the principal in respect of completing a payment transaction. As a principal to the transaction, when we are the Merchant of Record, we control the service of completing payments for our customers through the payment ecosystem. The fees paid to payment processors and other financial institutions are recognized as transaction expense. For certain transactions in which we act in the capacity as an agent, these transactions are recorded on a net basis. These are transactions in which we are not the Merchant of Record, and the customer is entering into a separate arrangement with a third party payment processor for the fulfillment of the payment service. Cashless vending services represent a single performance obligation as the combination of the services provided gives the customer the ability to accept cashless payments. The Company’s customers are contracting for integrated cashless services in connection with purchasing or leasing unattended point-of-sale devices. The activities when combined together are so integral to the customer’s ability to derive benefit from the service, that the activities are effectively inputs to a single promise to the customer. Certain services are distinct, but are not accounted for separately as the rights are coterminous, they are transferred concurrently and the outcome is the same as accounting for the services as individual performance obligations. The single performance obligation is determined to be a stand-ready obligation to process payments whenever a consumer intends to make a purchase at a point-of-sale device. As the Company is unable to predict the timing and quantity of transactions to be processed, the assessment of the nature of the performance obligation is focused on each time increment rather than the underlying activity. Therefore, cashless vending services are viewed to comprise a series of distinct days of service that are substantially the same and have the same pattern of transfer to the customer. As a result, the promise to stand ready is accounted for as a single performance obligation. Revenue related to cashless vending services is recognized over the period in which services are provided, with usage-based revenue recognized as transactions occur. Consideration for this service includes fixed fees for standing ready to process transactions, and generally also includes usage-based fees, priced as a percentage of transaction value and/or a specified fee per transaction processed. The total transaction price of usage-based services is determined to be variable consideration as it is based on unknown quantities of services to be performed over the contract term. The underlying variability is satisfied each day the service is performed and provided to the customer. Clients are billed for cashless vending services on a monthly basis and for transaction processing as transactions occur. Payment is due based on the Company’s standard payment terms which is typically within 30 to 60 days of invoice issuance. Equipment sales represent a separate performance obligation, the majority of which is satisfied at a point in time through outright sales or sales-type leases when the equipment is delivered to the customer. Revenues related to Cantaloupe ONE equipment are recognized over time as the customer obtains the right to use the equipment through an operating lease. Clients are billed for equipment sales on a monthly basis, with payment due based on the Company’s standard payment terms which is typically within 30 to 60 days of invoice issuance. The Company will occasionally offer volume discounts, rebates or credits on certain contracts, which is considered variable consideration. The Company uses either the most-likely or estimated value method to estimate the amount of the consideration, based on what the Company expects to better predict the amount of consideration to which it will be entitled to on a contract-by-contract basis. The Company will qualitatively assess if the variable consideration should be limited to prevent possible significant reversals of revenue in future reporting periods. The Company assesses the goods and/or services promised in each customer contract and separately identifies a performance obligation for each promise to transfer to the customer a distinct good or service. The Company then allocates the transaction price to each performance obligation in the contract using relative standalone selling prices. The Company determines standalone selling prices based on the price at which a good or service is sold separately. If the standalone selling price is not observable through historic data, the Company estimates the standalone selling price by considering all reasonably available information, including market data, trends, as well as other company- or customer-specific factors. The Company’s standard payment terms are payment is due within 30 to 60 days of invoice issuance. The Company uses the practical expedient and does not recognize a significant financing component for payment considerations of less than one year. Warranties The Company offers standard warranties that provide the customer with assurance that its equipment will function in accordance with contract specifications. The Company's standard warranties are not sold separately, but are included with each customer purchase. Warranties are not considered separate performance obligations and, therefore, are estimated and recorded at the time of sale. Accounts Receivable and Contract Liabilities A contract with a customer creates legal rights and obligations. As the Company satisfies performance obligations under customer contracts, a right to unconditional consideration is recorded as an account receivable. Contract liabilities represent consideration received from customers in excess of revenues recognized (i.e., deferred revenue). Contract liabilities are classified as current or noncurrent based on the nature of the underlying contractual rights and obligations. Contract Costs The Company incurs costs to obtain contracts with customers, primarily in the form of commissions to sales employees. The Company recognizes as an asset the incremental costs of obtaining a contract with a customer if it expects to recover these costs. The Company currently does not incur material costs to fulfill its obligations under a contract once it is obtained but before transferring goods or services to the customer. Contract costs are amortized on a systematic basis consistent with the transfer to the customer of the goods or services to which the asset relates. A straight-line or proportional amortization method is used depending upon which method best depicts the pattern of transfer of the goods or services to the customer. The Company’s contracts frequently contain performance obligations satisfied at a point in time and overtime. In these instances, the Company amortizes the contract costs proportionally with the timing and pattern of revenue recognition. Amortization of costs to obtain a contract are included within sales and marketing expenses within the Consolidated Statements of Operations. In addition, these contract costs are evaluated for impairment by comparing, on a pooled basis, the expected future net cash flows from underlying customer relationships to the carrying amount of the capitalized contract costs. In order to determine the appropriate amortization period for contract costs, the Company considers a number of factors, including expected early terminations, estimated terms of customer relationships, the useful lives of technology Cantaloupe uses to provide goods and services to its customers, whether future contract renewals are expected and if there is any incremental commission to be paid on a contract renewal. The Company amortizes these assets over the expected period of benefit. Costs to obtain a contract with an expected period of benefit of one year or less are expensed when incurred. Revenue from the sale of QuickStart lease of equipment is recognized when equipment is shipped to the customer. Transaction processing revenue is recognized upon the usage of the Company’s cashless payment and control network. Subscription fees for access to the Company’s devices and network services are recognized on a monthly basis. In all cases, revenue is only recognized when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed and determinable, and collection of the resulting receivable is reasonably assured. The Company estimates an allowance for subscription and transaction fee refunds on a monthly basis. Hardware is available to customers under the QuickStart program pursuant to which the customer would enter into a five-year non-cancelable lease with either the Company or a third-party leasing company for the devices. The Company then allocates the transaction price to each performance obligation in the contract using relative standalone selling prices. The Company determines standalone selling prices based on the price at which a good or service is sold separately. If the standalone selling price is not observable through historic data, the Company estimates the standalone selling price by considering all reasonably available information, including market data, trends, as well as other company- or customer-specific factors. The QuickStart contracts qualify for sales type lease accounting. At lease inception, the Company recognizes revenue and creates a finance receivable in an amount that represents the present value of minimum lease payments. Accordingly, a portion of the lease payments are recognized as interest income. At the end of the lease period, the customer would have the option to purchase the device at its residual value. Any customer payments received in advance and prior to the Company satisfying any performance obligations are recorded as deferred revenue and amortized as revenue is recognized. Equipment Rental The Company offers its customers a rental program for its hardware devices, Cantaloupe ONE platform. Cantaloupe ONE terms are 36 months rental agreements that transition to month-to-month agreements after the initial subscription commitment period. In accordance with ASC 842, “Leases”, the Company classifies the rental agreements as operating leases, with service fee revenue related to the leases included in subscription and transaction fees in the Consolidated Statements of Operations. Costs for the Cantaloupe ONE revenue, which consist of depreciation expense on the Cantaloupe ONE equipment, are included in cost of services in the Consolidated Statements of Operations. Equipment utilized by the Cantaloupe ONE program is included in property and equipment, net on the Consolidated Balance Sheets. 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 and office equipment. Cantaloupe’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. Right-of-use 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 Right-of-Use (“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. Cantaloupe has lease agreements with lease and |
LEASES
LEASES | 12 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
LEASES | LEASES Lessee accounting We have operating leases which are primarily real estate leases used for corporate functions, product development, sales, and other purposes. The following table provides supplemental balance sheet information related to the Company's operating leases: ($ in thousands) Balance Sheet Classification As of June 30, 2022 As of June 30, 2021 Assets Operating leases Operating lease right-of-use assets $ 2,370 $ 3,049 Liabilities Current Accrued expenses 1,538 1,166 Long-term Operating lease liabilities, non-current 2,366 3,645 Total lease liabilities $ 3,904 $ 4,811 Components of lease cost are as follows: ($ in thousands) Year ended June 30, 2022 Year ended June 30, 2021 Operating lease costs* $ 1,923 $ 2,079 * 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) Year ended June 30, 2022 Year ended June 30, 2021 Supplemental cash flow information: Cash paid for amounts included in the measurement of operating lease liabilities $ 1,737 $ 1,635 Non-cash activity Right-of-use assets obtained in exchange for lease obligations Operating lease liabilities $ 471 $ — Weighted-average remaining lease term and discount rate for our leases are as follows: Year ended June 30, 2022 Year ended June 30, 2021 Weighted-average remaining lease term (years) Operating leases 3.4 4.3 Weighted-average discount rate Operating leases 6.8 % 6.9 % Maturities of lease liabilities by fiscal year for our leases are as follows: ($ in thousands) Operating 2023 $ 1,758 2024 1,029 2025 707 2026 628 2027 265 Thereafter — Total lease payments $ 4,387 Less: Imputed interest (483) Present value of lease liabilities $ 3,904 Lessor accounting Property and equipment used for the Company's operating lease rental program consisted of the following: ($ in thousands) June 30, June 30, Cost $ 25,242 26,753 Accumulated depreciation (22,914) (24,487) Net $ 2,328 $ 2,266 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 June 30, 2022 are disclosed within Note 7, Finance Receivables. |
LEASES | LEASES Lessee accounting We have operating leases which are primarily real estate leases used for corporate functions, product development, sales, and other purposes. The following table provides supplemental balance sheet information related to the Company's operating leases: ($ in thousands) Balance Sheet Classification As of June 30, 2022 As of June 30, 2021 Assets Operating leases Operating lease right-of-use assets $ 2,370 $ 3,049 Liabilities Current Accrued expenses 1,538 1,166 Long-term Operating lease liabilities, non-current 2,366 3,645 Total lease liabilities $ 3,904 $ 4,811 Components of lease cost are as follows: ($ in thousands) Year ended June 30, 2022 Year ended June 30, 2021 Operating lease costs* $ 1,923 $ 2,079 * 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) Year ended June 30, 2022 Year ended June 30, 2021 Supplemental cash flow information: Cash paid for amounts included in the measurement of operating lease liabilities $ 1,737 $ 1,635 Non-cash activity Right-of-use assets obtained in exchange for lease obligations Operating lease liabilities $ 471 $ — Weighted-average remaining lease term and discount rate for our leases are as follows: Year ended June 30, 2022 Year ended June 30, 2021 Weighted-average remaining lease term (years) Operating leases 3.4 4.3 Weighted-average discount rate Operating leases 6.8 % 6.9 % Maturities of lease liabilities by fiscal year for our leases are as follows: ($ in thousands) Operating 2023 $ 1,758 2024 1,029 2025 707 2026 628 2027 265 Thereafter — Total lease payments $ 4,387 Less: Imputed interest (483) Present value of lease liabilities $ 3,904 Lessor accounting Property and equipment used for the Company's operating lease rental program consisted of the following: ($ in thousands) June 30, June 30, Cost $ 25,242 26,753 Accumulated depreciation (22,914) (24,487) Net $ 2,328 $ 2,266 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 June 30, 2022 are disclosed within Note 7, Finance Receivables. |
LEASES | LEASES Lessee accounting We have operating leases which are primarily real estate leases used for corporate functions, product development, sales, and other purposes. The following table provides supplemental balance sheet information related to the Company's operating leases: ($ in thousands) Balance Sheet Classification As of June 30, 2022 As of June 30, 2021 Assets Operating leases Operating lease right-of-use assets $ 2,370 $ 3,049 Liabilities Current Accrued expenses 1,538 1,166 Long-term Operating lease liabilities, non-current 2,366 3,645 Total lease liabilities $ 3,904 $ 4,811 Components of lease cost are as follows: ($ in thousands) Year ended June 30, 2022 Year ended June 30, 2021 Operating lease costs* $ 1,923 $ 2,079 * 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) Year ended June 30, 2022 Year ended June 30, 2021 Supplemental cash flow information: Cash paid for amounts included in the measurement of operating lease liabilities $ 1,737 $ 1,635 Non-cash activity Right-of-use assets obtained in exchange for lease obligations Operating lease liabilities $ 471 $ — Weighted-average remaining lease term and discount rate for our leases are as follows: Year ended June 30, 2022 Year ended June 30, 2021 Weighted-average remaining lease term (years) Operating leases 3.4 4.3 Weighted-average discount rate Operating leases 6.8 % 6.9 % Maturities of lease liabilities by fiscal year for our leases are as follows: ($ in thousands) Operating 2023 $ 1,758 2024 1,029 2025 707 2026 628 2027 265 Thereafter — Total lease payments $ 4,387 Less: Imputed interest (483) Present value of lease liabilities $ 3,904 Lessor accounting Property and equipment used for the Company's operating lease rental program consisted of the following: ($ in thousands) June 30, June 30, Cost $ 25,242 26,753 Accumulated depreciation (22,914) (24,487) Net $ 2,328 $ 2,266 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 June 30, 2022 are disclosed within Note 7, Finance Receivables. |
REVENUE
REVENUE | 12 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Disaggregated Revenue Beginning in fiscal year 2022, the Company disaggregated Subscription and transaction fees presented on the Consolidated Statements of Operations to Transaction fees and Subscription fees categories (described below) as this additional disclosure provides greater visibility into the Company's revenue streams and better aligns the Company’s financial performance including how management views and monitors business operations and makes strategic decisions. • Transaction fees: The Company charges its customers a transaction fee generally calculated as a percentage rate on volumes processed through our payment devices. • Subscription fees: Subscription fees are primarily comprised of the monthly service fee charged to our customers for our cashless payment services, service fees originated through our rental program and Seed software services that include inventory management, route logistics optimization, warehouse and accounting management, and responsive merchandising. Based on similar operational characteristics, the Company's revenue is disaggregated as follows: Year-ended June 30, ($ in thousands) 2022 2021 2020 Transaction fees $ 110,695 $ 85,497 $ 81,244 Subscription fees 58,155 53,745 51,923 Subscription and transaction fees 168,850 139,242 133,167 Equipment sales 36,352 27,697 29,986 Total revenues $ 205,202 $ 166,939 $ 163,153 Contract Liabilities The Company's contract liability (i.e., deferred revenue) balances are as follows: Year ended June 30, ($ in thousands) 2022 2021 Deferred revenue, beginning of the period $ 1,763 $ 1,698 Deferred revenue, end of the period 1,893 1,763 Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period 383 595 The change in the contract liabilities year-over-year is primarily the result of timing difference between the Company's satisfaction of a performance obligation and payment from the customer. Contract Costs At June 30, 2022, the Company had net capitalized costs to obtain contracts of $0.5 million included in Prepaid expenses and other current assets and $2.3 million included in Other noncurrent assets on the Consolidated Balance Sheets. None of these capitalized contract costs were impaired. During the year ended June 30, 2022, amortization of capitalized contract costs was $0.7 million. At June 30, 2021, the Company had net capitalized costs to obtain contracts of $0.4 million included in Prepaid expenses and other current assets and $2.0 million included in Other noncurrent assets on the Consolidated Balance Sheets. None of these capitalized contract costs were impaired. During the year ended June 30, 2021, amortization of capitalized contract costs was $0.6 million. Future Performance Obligations The Company will recognize revenue in future periods related to remaining performance obligations for certain open contracts. Generally, these contracts have terms of one year or less. The amount of revenue related to unsatisfied performance obligations in which the original duration of the contract is greater than one year is not significant. |
LOSS PER SHARE CALCULATION
LOSS PER SHARE CALCULATION | 12 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
LOSS PER SHARE CALCULATION | LOSS PER SHARE CALCULATION The following table presents the calculation of basic and diluted loss per share: Year ended June 30, ($ in thousands, except share and per share data) 2022 2021 2020 Numerator for basic and diluted loss per share Net loss $ (1,703) $ (8,705) $ (40,595) Preferred dividends (668) (668) (668) Net loss available to common shareholders $ (2,371) $ (9,373) $ (41,263) Denominator for basic loss per share - Weighted average shares outstanding 71,091,790 67,002,438 62,980,193 Effect of dilutive potential common shares — — — Denominator for diluted loss per share - Adjusted weighted average shares outstanding 71,091,790 67,002,438 62,980,193 Basic and diluted loss per share $ (0.03) $ (0.14) $ (0.66) Potentially anti-dilutive shares excluded from the calculation of diluted loss per share were approximately 5 million, 4 million, and 3 million for the year ended June 30, 2022, 2021 and 2020, respectively. |
ACQUISITION
ACQUISITION | 12 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITION | ACQUISITION In August 2021, we completed the acquisition of certain assets and liabilities of Delicious Nutritious LLC, doing business as Yoke Payments (“Yoke”), a micro market payments company. The acquisition of Yoke was accounted for as a business combination using the acquisition method of accounting which includes the results of operations of the acquired business from the date of acquisition. The purchase price of the acquired company is allocated between tangible and intangible assets acquired and liabilities assumed from the acquired business based on their estimated fair values using primarily Level 3 inputs under ASC Topic 820, Fair Value Measurement , with the residual of the purchase price recorded as goodwill. Through the acquisition, Yoke’s point of sale platform will now extend its offering to provide self-checkout while seamlessly integrating with Cantaloupe’s inventory management and payment processing platforms. We plan to differentiate ourselves by providing a single platform to manage consumer and operational aspects of micro markets, while also integrating multiple service providers for flexibility and ultimate ease to our customers. The consideration transferred for the acquisition includes payments of $3 million in cash at the close of the transaction and $1 million in deferred cash payment due on or before July 30, 2022 based on the achievement of certain sales growth targets. As of the date of the acquisition and as of the year ended June 30, 2022, we expected to pay the entire deferred cash payment and we accrued a contingent consideration liability of $1 million which is included within Accrued expenses in our Consolidated Balance Sheet. On July 27, 2022, the Company made the cash payment of $1 million in accordance with the agreement consideration. Additionally in connection with the acquisition, the Company will issue common stock to the former owners of Yoke based on the achievement of certain sales growth targets for software licenses through July 31, 2024 and continued employment as of the respective measurement dates. The accounting treatment for these awards in the context of the business combination is to recognize the awards as a post-combination expense and were not included in the purchase price. We will begin recognizing compensation expense for these awards over the requisite service period when it becomes probable that the performance condition would be satisfied. At each reporting date, we assess the probability of achieving the sales targets and fulfilling the performance condition. For the year ended June 30, 2022, we determined that it is not probable that the performance condition would be satisfied and, accordingly, have not recognized compensation expense related to these awards. The following table summarizes the total consideration paid for Yoke, total net assets acquired, identifiable assets and goodwill recognized at the acquisition date: ($ in thousands) Amount Consideration Cash $ 2,966 Contingent consideration arrangement 1,000 Fair value of total consideration transferred 3,966 Recognized amounts of identifiable assets Total net assets acquired 21 Identifiable intangible assets 1,235 Total identifiable net assets 1,256 Goodwill $ 2,710 Amounts allocated to identifiable intangible assets included $0.9 million related to developed technology, $0.3 million related to customer relationships, and $0.1 million related to other intangible assets. The fair value of the acquired developed technology was determined using a multi-period excess earnings method. The fair value of the acquired customer relationships was determined using the with-and-without method which estimates the value using the cash flow impact in a scenario where the customer relationships are not in place. The recognized intangible assets will be amortized on a straight-line basis over the estimated useful lives of the respective assets. Goodwill of $2.7 million arising from the acquisition includes the expected synergies between Yoke and the Company and intangible assets that do not qualify for separate recognition at the time of acquisition. The goodwill, which is deductible for income tax purposes, was assigned to the Company’s only reporting unit. |
FINANCE RECEIVABLES
FINANCE RECEIVABLES | 12 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
FINANCE RECEIVABLES | FINANCE RECEIVABLES The Company’s finance receivables consist of financed devices under the QuickStart program and devices contractually associated with the Seed platform. Predominately all of the Company’s finance receivables agreements are classified as non-cancellable sixty-month sales-type leases. As of June 30, 2022 and 2021, finance receivables consist of the following: As of June 30, ($ in thousands) 2022 2021 Current finance receivables, net $ 6,721 $ 7,967 Finance receivables due after one year, net 14,727 11,632 Total finance receivables, net of allowance of $760 and $1,109, respectively $ 21,448 $ 19,599 We collect lease payments from customers primarily as part of the flow of funds from our transaction processing service. Balances are considered past due if customers do not have sufficient transaction revenue to cover the monthly lease payment by the end of the monthly billing period. The Company routinely monitors customer payment performance and uses prior payment performance as a measure to assess the capability of the customer to repay contractual obligations of the lease agreements as scheduled. On an as-needed basis, qualitative information may be taken into consideration if new information arises related to the customer’s ability to repay the lease. Credit risk for these receivables is continuously monitored by management and reflected within the allowance for finance receivables by aggregating leases with similar risk characteristics into pools that are collectively assessed. Because the Company’s lease contracts generally have similar terms, customer characteristics around transaction processing volume and sales were used to disaggregate the leases. Our key credit quality indicator is the amount of transaction revenue we process for each customer relative to their lease payment due, as we consider this customer characteristic to be the strongest predictor of the risk of customer default. Customers with low processing volume or with transaction sales that are insufficient to cover the lease payment are considered to be at a higher risk of customer default. Customers are pooled based on their ratio of gross sales to required monthly lease obligations. We categorize outstanding receivables into two categories: high ratio customers (customers who have adequate transaction processing volumes to cover monthly fees) and low ratio customers (customers that do not consistently have adequate transaction processing volumes to cover monthly fees). Using these two categories, we performed an analysis of historical write-offs to calculate reserve percentages by aging buckets for each category of customer. At June 30, 2022, the gross lease receivable by current payment performance on a contractual basis and year of origination consisted of the following: Leases by Origination ($ in thousands) Up to 1 Year Ago Between 1 and 2 Years Ago Between 2 and 3 Years Ago Between 3 and 4 Years Ago Between 4 and 5 Years Ago More than 5 Years Ago Total Current $ 7,451 $ 5,047 $ 2,758 $ 2,593 $ 2,807 $ 103 $ 20,759 30 days and under 18 10 32 56 94 3 213 31 - 60 days 25 23 26 58 100 — 232 61 - 90 days 25 14 20 46 91 — 196 Greater than 90 days 41 47 97 232 391 — 808 Total finance receivables $ 7,560 $ 5,141 $ 2,933 $ 2,985 $ 3,483 $ 106 $ 22,208 At June 30, 2021, the gross lease receivable by current payment performance on a contractual basis and year of origination consisted of the following: Leases by Origination ($ in thousands) Up to 1 Year Ago Between 1 and 2 Years Ago Between 2 and 3 Years Ago Between 3 and 4 Years Ago Between 4 and 5 Years Ago More than 5 Years Ago Total Current $ 6,736 $ 3,970 $ 3,942 $ 3,081 $ 1,358 $ 31 $ 19,118 30 days and under 19 67 90 93 11 1 281 31 - 60 days 4 9 22 2 1 — 38 61 - 90 days 10 42 66 54 10 — 182 Greater than 90 days 46 69 490 419 54 11 1,089 Total finance receivables $ 6,815 $ 4,157 $ 4,610 $ 3,649 $ 1,434 $ 43 $ 20,708 At June 30, 2022, credit quality indicators by year of origination consisted of the following: Leases by Origination ($ in thousands) Up to 1 Year Ago Between 1 and 2 Years Ago Between 2 and 3 Years Ago Between 3 and 4 Years Ago Between 4 and 5 Years Ago More than 5 Years Ago Total High ratio customers $ 7,498 $ 4,853 $ 2,688 $ 2,623 $ 2,950 $ 102 $ 20,714 Low ratio customers 62 288 245 362 533 4 1,494 Total finance receivables $ 7,560 $ 5,141 $ 2,933 $ 2,985 $ 3,483 $ 106 $ 22,208 At June 30, 2021, credit quality indicators by year of origination consisted of the following: Leases by Origination ($ in thousands) Up to 1 Year Ago Between 1 and 2 Years Ago Between 2 and 3 Years Ago Between 3 and 4 Years Ago Between 4 and 5 Years Ago More than 5 Years Ago Total High ratio customers $ 6,415 $ 3,824 $ 3,793 $ 2,920 $ 1,290 $ 24 $ 18,266 Low ratio customers 400 333 817 729 144 19 2,442 Total finance receivables $ 6,815 $ 4,157 $ 4,610 $ 3,649 $ 1,434 $ 43 $ 20,708 The following table represents a rollforward of the allowance for finance receivables for the year ending June 30, 2022 and 2021: ($ in thousands) Year ended June 30, 2022 Year ended June 30, 2021 Balance at June 30 $ 1,109 $ 150 Impact of ASC 326* — 409 Provision for expected losses 36 550 Write-offs (385) — Balance June 30 $ 760 $ 1,109 * The Company adopted ASC 326 on July 1, 2020. Cash to be collected on our performing finance receivables due for each of the fiscal years after June 30, 2022 are as follows: ($ in thousands) 2023 $ 2,937 2024 1,841 2025 3,420 2026 6,039 2027 9,368 Thereafter 1,384 Total amounts to be collected 24,989 Less: interest (2,781) Less: allowance for doubtful accounts (760) Total finance receivables $ 21,448 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following: As of June 30, 2022 ($ in thousands) Useful Cost Accumulated Net Computer equipment and software 3-7 years $ 6,758 $ (6,404) $ 354 Internal-use software 3-5 years 12,787 (2,859) 9,928 Property and equipment used for rental program 5 years 25,242 (22,914) 2,328 Furniture and equipment 3-7 years 1,529 (1,396) 133 Leasehold improvements (a) 286 (245) 41 $ 46,602 $ (33,818) $ 12,784 As of June 30, 2021 ($ in thousands) Useful Cost Accumulated Net Computer equipment and software 3-7 years $ 6,497 $ (6,212) $ 285 Internal-use software 3-5 years 4,523 (1,821) 2,702 Property and equipment used for rental program 5 years 26,753 (24,487) 2,266 Furniture and equipment 3-7 years 1,471 (1,222) 249 Leasehold improvements (a) 192 (124) 68 $ 39,436 $ (33,866) $ 5,570 (a) Lesser of lease term or estimated useful life The Company's total depreciation expense is comprised of depreciation included in our cost of sales for rental equipment and depreciation included in our operating expenses. Depreciation expense included within cost of sales for rental equipment was $1.0 million, $1.4 million, and $2.7 million for the years ended June 30, 2022, 2021, and 2020, respectively. Depreciation expense included within operating expenses for the years ended June 30, 2022, 2021, and 2020 was $1.1 million, $1.0 million and $1.2 million, respectively. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill and intangible asset balances consisted of the following: As of June 30, 2022 Amortization ($ in thousands) Gross Accumulated Amortization Net Intangible assets: Brand and tradenames $ 1,705 $ (1,133) $ 572 1 - 7 years Developed technology 11,819 (8,761) 3,058 5 - 6 years Customer relationships 19,339 (5,022) 14,317 5 - 18 years Total intangible assets $ 32,863 $ (14,916) $ 17,947 Goodwill $ 66,656 $ — $ 66,656 Indefinite As of June 30, 2021 Amortization ($ in thousands) Gross Accumulated Amortization Net Intangible assets: Brand and tradenames $ 1,640 $ (840) $ 800 3 - 7 years Developed technology 10,939 (6,890) 4,049 5 - 6 years Customer relationships 19,049 (3,906) 15,143 10 - 18 years Total intangible assets $ 31,628 $ (11,636) $ 19,992 Goodwill $ 63,945 $ — $ 63,945 Indefinite For the years ended June 30, 2022, 2021 and 2020, amortization expense related to intangible assets was $3.3 million, $3.1 million and $3.1 million, respectively. The weighted-average remaining useful life of the finite-lived intangible assets was 10.5 years as of June 30, 2022, of which the weighted-average remaining useful life for the brand and tradenames was 2.3 years, for the developed technology was 2 years, and for the customer relationships was 13.0 years. Estimated annual amortization expense for intangible assets is as follows (in thousands): 2023 $ 3,270 2024 2,151 2025 1,389 2026 1,292 2027 1,069 Thereafter 8,776 $ 17,947 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Jun. 30, 2022 | |
Accrued Liabilities [Abstract] | |
ACCRUED EXPENSES | ACCRUED EXPENSES Accrued expenses consisted of the following as of June 30, 2022 and 2021: As of June 30, ($ in thousands) 2022 2021 Accrued sales tax $ 14,694 $ 17,099 Accrued compensation and related sales commissions 3,289 4,233 Operating lease liabilities - current 1,538 1,166 Accrued professional fees 4,200 1,739 Contingent consideration arrangement for Yoke Acquisition 1,000 — Accrued other taxes and filing fees 2,036 1,450 Accrued other 1,397 773 Total accrued expenses $ 28,154 $ 26,460 |
DEBT AND OTHER FINANCING ARRANG
DEBT AND OTHER FINANCING ARRANGEMENTS | 12 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
DEBT AND OTHER FINANCING ARRANGEMENTS | DEBT AND OTHER FINANCING ARRANGEMENTS The Company's debt and other financing arrangements as of June 30, 2022 and 2021 consisted of the following: As of June 30, ($ in thousands) 2022 2021 JPMorgan Credit Facility* 14,813 14,437 Other obligations 70 113 Less: unamortized issuance costs and debt discount (261) (231) Total 14,622 14,319 Less: debt and other financing arrangements, current (692) (675) Debt and other financing arrangements, noncurrent $ 13,930 $ 13,644 *See discussion below on amendment to the JPMorgan Credit Facility. Details of interest expense presented on the Consolidated Statements of Operations are as follows: Year ended June 30, ($ in thousands) 2022 2021 2020 2020 Antara Term Facility $ — $ 2,779 $ 1,218 2021 JPMorgan Credit Facility 904 1,006 — Interest expense related to change in sales tax reserve (386) 218 558 2018 JPMorgan Revolving Credit Facility — — 303 2018 JPMorgan Term Loan — — 160 Other interest expense 6 10 358 Total interest expense $ 524 $ 4,013 $ 2,597 JPMorgan Chase Bank Credit Facility JPMorgan Credit Agreement dated August 14, 2020 and amendment dated March 2, 2021 On August 14, 2020, the Company repaid all amounts outstanding under the $30.0 million senior secured term loan facility (“2020 Antara Term Facility”) with Antara Capital Master Fund LP (“Antara”) and entered into a credit agreement with JPMorgan Chase Bank, N.A.(the “2021 JPMorgan Credit Agreement”). The 2021 JPMorgan Credit Agreement provided for a $5 million secured revolving credit facility (the “2021 JPMorgan Revolving Facility”) and a $15 million secured term facility (the “2021 JPMorgan Secured Term Facility” and together with the 2021 JPMorgan Revolving Facility, as amended, the “2021 JPMorgan Credit Facility”), which included an uncommitted expansion feature that allowed the Company to increase the total revolving commitments and/or add new tranches of term loans in an aggregate amount not to exceed $5 million. The 2021 JPMorgan Credit Facility had a three year maturity, with interest determined, at the Company’s option, on a base rate of LIBOR or Prime Rate plus an applicable spread tied to the Company’s total leverage ratio and having ranges between 2.75% and 3.75% for Prime rate loans and between 3.75% and 4.75% for LIBOR rate loans. In the event of default, the interest rate may be increased by 2.00%. The 2021 JPMorgan Credit Facility carries a commitment fee of 0.50% per annum on the unused portion. From August 14, 2020 through March 2, 2021, the applicable interest rate was Prime Rate plus 3.75%. On March 2, 2021, the Company entered into an amendment (the “First Amendment”) to the 2021 JPMorgan Credit Facility lowering the interest rate charged to the Company. In conjunction with the First Amendment, the Company elected to convert its loans to a Eurodollar borrowing which is subject to a LIBOR based interest rate. The Company’s obligations under the 2021 JPMorgan Credit Facility were secured by first priority security interests in substantially all of the assets of the Company. The 2021 JPMorgan Credit Agreement included customary representations, warranties and covenants, and acceleration, indemnity and events of default provisions, including a financial covenant requiring the Company to maintain an adjusted quick ratio of not less than 2.75 to 1.00 beginning January 1, 2021, and not less than 3.00 to 1.00 beginning April 1, 2021, and a financial covenant requiring the Company to maintain, as of the end of each of its fiscal quarters commencing with the fiscal quarter ended December 31, 2021, a total leverage ratio of not greater than 3.00 to 1.00. JP Morgan amended and restated Credit Agreement dated March 17, 2022 On March 17, 2022, the Company entered into an amended and restated credit agreement with JPMorgan Chase Bank, N.A. which provides for a $15 million secured revolving credit facility (the “Amended Revolving Facility”) and a $25 million secured term facility (the “Amended Secured Term Facility” and together with the Amended Revolving Facility, the “Amended JPMorgan Credit Facility”), and fully replaces our previous 2021 JPMorgan Credit Facility. The Amended Secured Term Facility includes a $10 million increase from the 2021 JPMorgan Secured Term Facility which is available for a period of up to twelve months following the Closing Date. The proceeds of the Amended JPMorgan Credit Facility may be used to refinance certain existing indebtedness of the Company and its subsidiaries, to finance the working capital needs, and for general corporate purposes (including permitted acquisitions), of the Company and its subsidiaries. The Amended JPMorgan Credit Facility has a four year maturity. Interest on the Amended JPMorgan Credit Facility will be based, at the Company’s option, on a base rate or SOFR plus an applicable margin tied to the Company’s total leverage ratio and having ranges of between 2.50% and 3.00% for base rate loans and between 3.50% and 4.00% for SOFR loans; provided that until June 30, 2022 the applicable margin shall be 2.75% for base rate loans and 3.75% for SOFR loans. Subject to the occurrence of a material acquisition and the Company’s total leverage ratio exceeding 3.00 to 1.00, the interest rate on the loans may increase by 0.25%. In an event of default, the interest rate may be increased by 2.00%. The Amended JPMorgan Credit Facility will also carry a commitment fee of 0.50% per annum on the unused portion. As of June 30, 2022, the total applicable interest rate for the Amended Secured Term Facility is 4.4%. The Amended JPMorgan Credit Facility includes customary representations, warranties and covenants, and acceleration, indemnity and events of default provisions, including, among other things, two financial covenants. One financial covenant requires the Company to maintain, at all times, a total leverage ratio of not more than 3.00 to 1.00 on the last day of any fiscal quarter. The other financial covenant is conditional on a material acquisition occurring: if a material acquisition occurs, the Company is required to maintain a total leverage ratio not greater than 4.00 to 1.00 for the next four fiscal quarters following the material acquisition. The Amended Secured Term Facility was accounted for as a modification of the 2021 JPMorgan Secured Term Facility. The previously unamortized debt issuance costs remain capitalized, the new fees paid to the creditor were capitalized, and allocated third-party costs incurred allocated to the term facility were charged to expense. We have also evaluated that the borrowing capacity of the Amended Revolving Facility is greater than the borrowing capacity of the 2021 JPMorgan Revolving Facility. The previously unamortized debt issuance costs remain capitalized, the new fees paid to the creditor and allocated third-party costs were capitalized. The Company capitalized $0.3 million of issuance costs related to the Amended JPMorgan Credit Facility during the year-ended June 30, 2022. The Company was in compliance with its financial covenants as of June 30, 2022. Term Facility with Antara On October 9, 2019, 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 (“2020 Antara Term Facility”). On October 31, 2019, the Company entered into a Financing Agreement with Antara to draw $15.0 million on the 2020 Antara 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 2020 Antara Term Facility bore 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 2018 Revolving Credit Facility (as defined below) due to JPMorgan. in the amount of $10.1 million, including accrued interest, and to pay transaction expenses. The Company would also incur a prepayment premium of 5% of the principal balance if prepaid on or prior to December 31, 2020. 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 2020 Antara 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 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 on a relative fair value basis and capitalized on the Company’s balance sheet of which $0.9 million was allocated to debt issuance costs and $0.1 million was allocated to debt commitment fees. The 2020 Antara Term Facility agreement also contained a mandatory prepayment feature that was determined to be an embedded derivative, requiring bifurcation and fair value recognition for the derivative liability. 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, which was de-recognized during the three months ended September 30, 2020. On August 14, 2020, the Company repaid all amounts outstanding under the 2020 Antara Term Facility and entered into the 2021 JPMorgan Credit Agreement. The Company recorded a liability for the commitment termination fee and prepayment premium for $1.2 million as of June 30, 2020. As of June 30, 2021, the Company has no outstanding obligations related to the 2020 Antara Term Facility. Other Long-Term Borrowings In the fourth quarter of fiscal year 2020, we received loan proceeds of approximately $3.1 million (the “PPP Loan”) pursuant to the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) administered by the U.S. Small Business Administration (the “SBA”). We used the PPP Loan in accordance with the provisions of the CARES Act. The loan bore a fixed interest rate of 1% over a two-year term from the approval date of April 28, 2020. The application for these funds required the Company to, in good faith, certify that the economic uncertainty caused by COVID-19 made the loan request necessary to support the ongoing operations of the Company. This certification further required 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 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. On June 8, 2021, the Company received notification from the Small Business Administration that they approved the forgiveness of the full $3.1 million PPP loan and related accrued interest. The Company recorded the forgiveness as a gain on debt extinguishment in Other income in our consolidated financial statements. The SBA reserves the right to audit any PPP loan, regardless of size. These audits may occur after forgiveness has been granted. Under the CARES Act, all borrowers are required to maintain their loan documentation for six years after the PPP loan was forgiven or repaid in full and to provide that documentation to the SBA upon request. The expected maturities associated with the Company’s outstanding debt and other financing arrangements as of June 30, 2022, were as follows: 2023 770 2024 897 2025 1,250 2026 11,966 2027 — Principal amounts payable 14,883 Unamortized issuance costs (261) Total outstanding debt $ 14,622 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTSThe 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 their liquid or short-term nature. We have not identified material impacts from COVID-19 on the fair value of our financial assets and liabilities. The Company’s obligations under its long-term debt agreements are carried at amortized cost, which approximates their fair value as of June 30, 2022, as the debt facility was recently amended and expanded in March 2022 and the interest rates applicable are variable in nature. The fair value of the Company’s obligations under its long-term debt agreements with JPMorgan were considered Level 2 liabilities of the fair value hierarchy because these instruments have interest rates that reset frequently. |
EQUITY
EQUITY | 12 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
EQUITY | EQUITY PRIVATE PLACEMENTS On February 24, 2021, the Company entered into separate subscription agreements in identical form and substance (the “Subscription Agreements”) with institutional accredited investors (the “Purchasers”) relating to a private placement (the “Private Placement”) with respect to the sale of an aggregate of 5,730,000 shares of the Company’s common stock. The Private Placement closed on March 4, 2021 and the Company received aggregate gross proceeds of approximately $55 million based on the offering price of $9.60 per share (the “Purchase Price”). The Company incurred $2.6 million in direct and incremental issuance costs relating to the Private Placement that were accounted as a reduction in the proceeds of the stock. The syndicate for the Private Placement included affiliates of Hudson Executive, a greater than 10% shareholder and a related party of the Company. Affiliates of Hudson Executive purchased 975,000 of the shares sold in the Private Placement for the same purchase price and on the same terms as the other purchasers. Pursuant to the Subscription Agreements, the Company agreed to file a registration statement with the U.S. Securities and Exchange Commission covering the resale of the Shares within 45 days following the date of the Subscription Agreements and to cause the registration statement to become effective within 60 days following the filing deadline. On April 5, 2021, the Company filed the registration statement with the U.S. Securities and Exchange Commission and, on April 14, 2021, the registration statement was declared effective. WARRANTS During fiscal year 2021, the Company had 23,978 warrants exercisable at $5 per share outstanding which were exercised and resulted in 12,154 shares issued pursuant to a cashless exercise option election made by the holder. As of June 30, 2022 and June 30, 2021, the Company does not have any warrants outstanding. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES On December 21, 2020, Congress approved the Consolidated Appropriations Act, 2021 (the “Appropriations Act”), which was signed into law by the President on December 27, 2020. The Appropriations Act funds the federal government to the end of the fiscal year and provides further COVID-19 economic relief. Some of the business provisions included in the Appropriations Act are additional Paycheck Protection Program ("PPP") loans, clarification of the deductibility of business expenses that were paid for with PPP funds, expansion of the employee retention credit, and temporary full deduction for business expenses for food and beverages provided by a restaurant. The Appropriations Act did not have a material impact on the Company’s income taxes. The Company will continue to monitor for additional legislation related to COVID-19 and its impact on our results of operations. The Company has significant deferred tax assets, a substantial amount of which result from operating loss carryforwards. The Company routinely evaluates its ability to realize the benefits of these assets to determine whether it is more likely than not that such benefit will be realized. In accordance with the history of losses generated, the Company believes that for the year ended June 30, 2022 and 2021, it is more likely than not that its deferred tax assets will not be realized. Accordingly, the Company re-established a full valuation allowance on its net deferred tax assets. The provision for income taxes for the years ended June 30, 2022, 2021 and 2020 is comprised of the following: Year ended June 30, ($ in thousands) 2022 2021 2020 Current: Federal $ — $ — $ 126 State (179) (328) (57) Total current (179) (328) 69 Deferred: Federal (18) (12) (156) State 11 (30) 86 Total deferred (7) (42) (70) Total income tax provision $ (186) $ (370) $ (1) A reconciliation of the provision for income taxes for the years ended June 30, 2022, 2021 and 2020 to the indicated provision based on income (loss) before the provision for income taxes at the federal statutory rate of 21.0% for the fiscal years ended June 30, 2022, June 30, 2021, and June 30, 2020 is as follows: Year ended June 30, ($ in thousands) 2022 2021 2020 Indicated benefit at federal statutory rate $ 319 $ 1,648 $ 8,514 Effects of permanent differences Stock compensation (184) 168 (226) Other permanent differences (106) 608 (106) State income taxes, net of federal benefit (275) 116 1,393 Changes related to prior years — — 489 Changes in valuation allowances 184 (2,927) (10,139) Other (124) 17 74 Provision for income taxes $ (186) $ (370) $ (1) As of June 30, 2022 the Company had federal and state operating loss carryforwards of approximately $190 million and $222 million, respectively, to offset future taxable income. As of June 30, 2021 the Company had federal and state operating loss carryforwards of approximately $187 million and $221 million, respectively, to offset future taxable income. The timing and extent to which the Company can utilize operating loss carryforwards in any year may be limited because of provisions of the Internal Revenue Code regarding changes in ownership of corporations (i.e. IRS Code Section 382). Federal and state operating loss carryforwards start to expire in 2022 and certain state operating loss carryforwards are currently expiring. The net deferred tax assets arose primarily from net operating loss carryforwards, as well as the use of different accounting methods for financial statement and income tax reporting purposes as follows: As of June 30, ($ in thousands) 2022 2021 Deferred tax assets: Net operating loss carryforwards $ 47,984 $ 46,851 Asset reserves 6,666 7,231 Deferred research and development 1,503 1,420 Stock-based compensation 3,416 2,620 Other (143) 2,135 59,426 60,257 Deferred tax liabilities: Intangibles (4,316) (4,956) Deferred tax assets, net 55,110 55,301 Valuation allowance (55,296) (55,480) Deferred tax liabilities $ (186) $ (179) As of June 30, 2022, the Company had total unrecognized income tax benefits of $0.6 million related to its nexus in certain state tax jurisdictions. If recognized in future years, $0.6 million of these currently unrecognized income tax benefits would impact the income tax provision and effective tax rate. The following table summarizes the activity related to unrecognized income tax benefits: Year ended June 30, ($ in thousands) 2022 2021 2020 Balance at the beginning of the year $ 444 $ 207 $ 210 Gross increases and decreases related to current period tax positions — — — Gross increases and decreases related to prior period tax positions 128 237 (3) Balance at the end of the year $ 572 $ 444 $ 207 |
STOCK BASED COMPENSATION PLANS
STOCK BASED COMPENSATION PLANS | 12 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK BASED COMPENSATION PLANS | STOCK BASED COMPENSATION PLANS The Company has four active stock based compensation plans at June 30, 2022 as shown in the table below: Date Approved Name of Plan Type of Plan Authorized June 2013 2013 Stock Incentive Plan Stock 500,000 June 2014 2014 Stock Option Incentive Plan Stock options 750,000 June 2015 2015 Equity Incentive Plan Stock & stock options 1,250,000 April 2018 2018 Equity Incentive Plan Stock & stock options 4,000,000 6,500,000 As of June 30, 2022, the Company had reserved shares of Common Stock for future issuance for the following: Common Stock Reserved Shares Conversions of Preferred Stock and cumulative Preferred Stock dividends 106,141 Issuance upon exercise of stock options granted to current CEO 1,000,000 Issuance of shares to former CEO George Jensen upon the occurrence of a Cantaloupe transaction (1) 140,000 Issuance under 2014 Stock Option Incentive Plan 115,687 Issuance under 2015 Equity Incentive Plan 392,159 Issuance under 2018 Equity Incentive Plan 179,843 Total shares reserved for future issuance 1,933,830 __________________________________________ (1) Represents 140,000 shares issuable to our former CEO George Jensen upon the occurrence of a "USA Transaction" as such term is defined in the Jensen Stock Agreement dated September 27, 2011 by and between the Company and George R. Jensen. STOCK OPTIONS Stock options are granted at exercise prices equal to the fair market value of the Company's common stock at the date of grant. The options typically vest over a three year period and each option, if not exercised or terminated, expires on the seventh The Company estimates the grant date fair value of the stock options with service conditions (i.e., a condition that requires an employee to render services to the Company for a stated period of time to vest) 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 uses the simplified method to determine expected term, as the Company does not have adequate historical exercise and forfeiture behavior on which to base the expected life assumption. 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. The fair value of options granted during the years ended June 30, 2022, 2021, and 2020 was determined using the following assumptions: For the year ended June 30, 2022 2021 2020 Expected volatility 73.2 - 74.6% 74.3 - 77.3% 74.6 - 90.1% Expected life (years) 4.5 - 4.6 4.5 3.5 - 4.8 Expected dividends 0.0% 0.0% 0.0% Risk-free interest rate 1.0 - 2.9% 0.2-0.7% 0.3-1.6% The following tables provide information about outstanding options for the years ended June 30, 2022, 2021, and 2020: For the year ended June 30, 2022 Number of Options Weighted Average Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding options, beginning of period 2,952,092 $ 6.97 5.6 $ 14,419 Granted 904,500 $ 8.86 Exercised (121,248) $ 6.30 $ (53) Forfeited (205,511) $ 8.09 Expired — $ — Outstanding options, end of period 3,529,833 $ 7.41 4.5 $ 194 Exercisable options, end of period 1,538,302 $ 6.79 4.5 $ 183 For the year ended June 30, 2021 Number of Options Weighted Average Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding options, beginning of period 2,437,425 $ 6.43 6.2 $ 1,411 Granted 755,000 $ 8.40 Exercised (74,667) $ 3.81 $ (601) Forfeited (165,666) $ 6.90 Expired — $ — Outstanding options, end of period 2,952,092 $ 6.97 5.6 $ 14,419 Exercisable options, end of period 1,040,131 $ 6.52 5.1 $ 5,558 For the year ended June 30, 2020 Number of Options Weighted Average Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding options, beginning of period 1,127,098 $ 4.84 4.3 $ 2,917 Granted 2,075,760 $ 6.47 Exercised (440,435) $ 2.48 $ (595) Forfeited (324,998) $ 6.55 Expired — $ — Outstanding options, end of period 2,437,425 $ 6.43 6.2 $ 1,411 Exercisable options, end of period 560,871 $ 6.01 4.8 $ 559 The weighted average grant date fair value per share for the Company's stock options granted during the years ended June 30, 2022, 2021, and 2020 was $5.12, $4.92, and $3.84, respectively. The total fair value of stock options vested during the years ended June 30, 2022, 2021, and 2020 was $3.0 million, $2.4 million, and $1.7 million, respectively. Performance based awards The Company has awarded stock options to certain executives which vest each year over a three year. On January 27, 2021, the Compensation Committee of the Board of Directors established the performance metrics as a price target for the trading price of the Company’s common stock in each applicable fiscal year. The price target is achieved if the average closing price of the common stock during any consecutive 30-trading-day period during the applicable fiscal year meets or exceeds: (i) $10.50 in the case of fiscal year 2021; (ii) $13.50 in the case of fiscal year 2022; (iii) $16.50 in the case of fiscal year 2023; and (iv) $19.50 in the case of fiscal year 2024. 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 based on such fiscal year’s performance will vest on a prorated basis. In so determining, the Compensation Committee will consider the Company’s performance relative to its market competitors and any other considerations deemed relevant by the Compensation Committee. The Compensation Committee’s guideline is generally that for every percentage point the achieved price falls below the price target, the percentage of the performance options eligible to vest in respect of the applicable fiscal year should be reduced by 2%, but the Compensation Committee may vary this formula in its sole discretion. For these performance based awards that provide discretion to the Compensation Committee, a mutual understanding of the key terms and conditions between the Company and the employees have not yet been met and a grant date has not been established. When the service period begins prior to the grant date, the Company begins recognizing compensation cost before there is a grant date. The Company estimates the award's fair value at each reporting period for these equity classified awards, until the grant date, utilizing a Monte Carlo simulation valuation model. The total expense recognized during the years ended June 30, 2022 and 2021 for these awards was $1.0 million and $2.1 million, respectively. STOCK GRANTS The Company makes annual grants of restricted shares of common stock to executive officers pursuant to long-term stock incentive plans (“LTIPs”) which vest annually, typically over three years. The Company also grants restricted stock units ("RSU"s) to members of the board of directors as compensation for their service on the board as well as to employees as additional compensation. These stock awards typically vest over a one Two employees of Hudson Executive, a greater than 10% shareholder and a related party of the Company, entered into consulting agreements with the Company in August and September of 2020, respectively, under which the consultants were to provide financial and strategic analysis and advisory services to the Company's CEO through July 31, 2021. As consideration for the services, in March 2021 the consultants were granted a total of 80,000 restricted stock units. The total expense recognized as of June 30, 2021 for these agreements was $0.8 million. These restricted stock units had fully vested as of June 30, 2021. During August and September of 2021, the Company extended these consulting agreements to provide advisory services from August 1, 2021 through July 31, 2022. As consideration for the extended agreements the consultants were granted an additional 20,000 restricted stock units. The restricted stock units granted to each consultant vested in equal installments on January 1, 2022 and July 1, 2022. On February 2, 2022, the Board of Directors of the Company appointed one of the above mentioned employees of Hudson Executive as a director of the Company, effective immediately. In connection with the appointment to the Board, the consulting agreement for that individual was terminated, effective February 2, 2022. Total expense recognized for the year ended June 30, 2022 for these consulting agreements was $0.2 million. A summary of the status of the Company’s nonvested common shares and RSUs as of June 30, 2022, 2021, and 2020, and changes during the years then ended is presented below: Shares Weighted-Average Nonvested at June 30, 2019 38,971 $ 9.19 Granted 651,715 7.28 Vested (109,050) 7.52 Forfeited (368,622) 7.89 Nonvested at June 30, 2020 213,014 $ 6.50 Granted 187,848 10.33 Vested (248,016) 7.71 Forfeited (15,000) $ 6.28 Nonvested at June 30, 2021 137,846 $ 9.57 Granted 507,729 7.33 Vested (101,515) 10.34 Forfeited (95,152) 8.89 Nonvested at June 30, 2022 448,908 $ 7.00 STOCK BASED COMPENSATION EXPENSE The Company applies the fair value method to recognize compensation expense for stock-based awards. Using this method, the estimated grant-date fair value of the award is recognized over the requisite service period using the accelerated attribution method. The Company accounts for forfeitures as they occur. A summary of the Company's stock-based compensation expense recognized during the years ended June 30, 2022, 2021, and 2020 is as follows (in thousands): For the year ended June 30, Award type 2022 2021 2020 Stock options $ 4,424 $ 7,806 $ 2,181 Stock grants 1,824 1,269 848 Total stock-based compensation expense $ 6,248 $ 9,075 $ 3,029 The Company recognized tax benefits of $0.6 million, $2.4 million, and $0.5 million related to stock compensation expense for the years ended June 30, 2022, 2021, and 2020. A summary of the Company's unrecognized stock-based compensation expense as of June 30, 2022 is as follows: As of June 30, 2022 Award type Unrecognized Expense Weighted Average Recognition Period Stock options $ 4,223 2.4 Stock grants $ 2,131 1.5 |
PREFERRED STOCK
PREFERRED STOCK | 12 Months Ended |
Jun. 30, 2022 | |
Preferred Stock [Abstract] | |
PREFERRED STOCK | PREFERRED STOCK The authorized Preferred Stock may be issued from time to time in one or more series, each series with such rights, preferences or restrictions as determined by the Board of Directors. As of June 30, 2022 each share of Series A Convertible Preferred Stock is convertible into 0.1988 of a share of Common Stock and each share of Series A Convertible Preferred Stock is entitled to 0.1988 of a vote on all matters on which the holders of Common Stock are entitled to vote. Series A Convertible Preferred Stock provides for an annual cumulative dividend of $1.50 per share, payable when, and if declared by the Board of Directors, to the shareholders of record in equal parts on February 1 and August 1 of each year. Any and all accumulated and unpaid cash dividends on the Series A Convertible Preferred Stock must be declared and paid prior to the declaration and payment of any dividends on the Common Stock. The Series A Convertible Preferred Stock may be called for redemption at the option of the Board of Directors for a price of $11.00 per share plus payment of all accrued and unpaid dividends. No such redemption has occurred as of June 30, 2022. In the event of any liquidation as defined in the Company’s Articles of Incorporation, the holders of shares of Series A Convertible Preferred Stock issued shall be entitled to receive $10.00 for each outstanding share plus all cumulative unpaid dividends. If funds are insufficient for this distribution, the assets available will be distributed ratably among the preferred shareholders. The Series A Convertible Preferred Stock liquidation preference as of June 30, 2022 and 2021 is as follows: ($ in thousands) June 30, June 30, For shares outstanding at $10.00 per share $ 4,451 $ 4,451 Cumulative unpaid dividends 17,662 16,996 $ 22,113 $ 21,447 The Company has determined that its Series A Convertible Preferred Stock is contingently redeemable due to the existence of deemed liquidation provisions contained in its certificate of incorporation, and therefore classifies its convertible preferred stock outside of permanent equity. The Company has not made any adjustments to the carrying value of the Series A Convertible Preferred Stock to reflect the liquidation value of the shares because the Company has determined that a deemed liquidation event is not probable of occurring. Cumulative unpaid dividends are convertible into common shares at $1,000 per common share at the option of the shareholder. During the years ended June 30, 2022, 2021 and 2020, no shares of Preferred Stock nor cumulative preferred dividends were converted into shares of common stock. |
RETIREMENT PLAN
RETIREMENT PLAN | 12 Months Ended |
Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |
RETIREMENT PLAN | RETIREMENT PLANThe Company’s 401(k) Plan (the “Retirement Plan”) allows employees to make voluntary contributions, beginning on their first day of active employment, up to a maximum of 100% of their annual compensation, as defined in the Retirement Plan. The Company may, in its discretion, make a matching contribution, a profit sharing contribution, a qualified non-elective contribution, and/or a safe harbor 401(k) contribution to the Retirement Plan. The Company must make an annual election, at the beginning of the plan year, as to whether it will make a safe harbor contribution to the plan. In fiscal years 2022, 2021 and 2020, the Company elected and made safe harbor matching contributions of 100% of the participant’s first 3% and 50% of the next 2% of compensation deferred into the Retirement Plan. The Company’s safe harbor contributions for the years ended June 30, 2022, 2021 and 2020 approximated $0.7 million, $0.2 million and $0.5 million, respectively, and are included within general and administrative expenses within our Consolidated Statements of Operations. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation We are a party to litigation and other proceedings that arise in the ordinary course of our business. These types of matters could result in fines, penalties, compensatory or treble damages or non-monetary sanctions or relief. In accordance with the accounting guidance for contingencies, we reserve for litigation claims and assessments asserted or threatened against us when a loss is probable and the amount of the loss can be reasonably estimated. We cannot predict the outcome of legal or other proceedings with certainty. Department of Justice Subpoena As previously reported, in the third quarter of fiscal year 2020, the Company responded to a subpoena received from the U.S. Department of Justice (“DOJ”) that sought records regarding Company activities that occurred during prior financial reporting periods, including restatements. During the current fiscal year, the DOJ staff has notified us that they have concluded their investigation and that they do not intend to proceed with any further investigation or enforcement. Securities and Exchange Commission (“SEC”) Inquiries Since fiscal year 2019, the Company has received inquiries from the SEC into the facts and circumstances of the 2019 Investigation and has fully cooperated with these inquiries. Purchase Commitments |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS A member of our Board of Directors serves as a strategic advisor to a consulting firm that we utilize for payments analytics and advisory services. These services are utilized by the Company to reduce the cost of our interchange and other processing fees charged by payment processors and credit card networks. As consideration for the services, we pay the consulting firm a success fee based on the savings realized by the Company and a recurring monthly subscription fee for the analytics services. The total expense recognized within Cost of subscription and transaction fees for the year ended June 30, 2022 for these arrangements was $1.1 million. The Company did not recognize an expense related to this arrangement for the ended June 30, 2021. See Note 15 - Stock-based Compensation for information on transactions relating to Hudson Executive. |
ACCOUNTING POLICIES (Policies)
ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
CONSOLIDATION | CONSOLIDATIONThe accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
BASIS OF PRESENTATION AND PREPARATION | BASIS OF PRESENTATION AND PREPARATIONThe consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). All intercompany transactions and balances have been eliminated in consolidation. In the opinion of management, all adjustments considered necessary for a fair presentation, consisting of normal recurring adjustments, have been included. |
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | Consolidated Statements of Operations: operating expenses presentation Beginning in fiscal year 2022, the Company revised its presentation of operating expenses within its Consolidated Statements of Operations by disaggregating the previously disclosed Selling, general, and administrative costs into Sales and marketing, Technology and product development, and General and administrative costs. The updated presentation is intended to provide additional transparency to the readers of the financial statements and better align the Company’s financial performance with how management views and monitors business operations and makes strategic decisions. Prior period amounts for fiscal year 2021 and 2020 have been reclassified to conform with current year presentation. Below is a brief description of the various categories within Operating expenses: • Sales and marketing: Sales and marketing expenses consist primarily of our sales and marketing team personnel costs which include non-capitalized wages, bonuses, stock-based compensation, sales commissions, severance costs, benefits, and employer taxes. In addition, this category includes fees paid for advertising, trade shows and external consultants who assist in outreach initiatives designed to build brand awareness and showcase the value of our products and services to our opportunity markets. • Technology and product development: Technology and product development expenses consist primarily of our technology and product team personnel costs and fees paid to external consultants relating to innovating and maintaining our portfolio of products and services and strengthening our network environment and platform. These costs include but are not limited to engineering, platform and software development, fees for software licenses, contract labor and other technology and product related items. • General, and administrative: General and administrative expenses consist primarily of our customer support, business operations, finance, legal, human resources and other administrative personnel costs and fees paid to external consultants for these respective departments. In addition, this category includes rent and occupancy costs and other miscellaneous costs incurred in the course of operating the business. • Depreciation and amortization: No changes made to the accounting policies or previously reported amounts included within the Company’s June 30, 2021 Annual Report on Form 10-K for this category. Depreciation expense on our property and equipment, excluding property and equipment used for rentals, and amortization expense on our intangible assets are included within the Depreciation and amortization caption in the Consolidated Statements of Operations. Consolidated Statements of Operations: updated caption Beginning in fiscal year 2022, the Company revised the previously reported revenue caption of License and transaction fees to Subscription and transaction fees within its Consolidated Statements of Operations to provide a more accurate description of the revenue stream and align with commonly used terminology by industry participants. No changes were made to the revenue recognition accounting policies or previously reported amounts included within the Company’s June 30, 2021 Annual Report on Form 10-K. |
USE OF ESTIMATES | USE OF ESTIMATES The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, assumptions and judgments that affect the amounts reported in the consolidated financial statements and accompanying notes. The Company evaluates these estimates on an ongoing basis. |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS Cash equivalents represent all highly liquid investments with original maturities of three months or less from time of purchase. Cash equivalents are comprised of money market funds. The Company maintains its cash in bank deposit accounts where accounts may exceed federally insured limits at times. The Company deems this credit risk not to be significant as cash is held at well-capitalized financial institutions in the U.S. |
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS | ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS Accounts receivable include amounts due to the Company for sales of equipment, other amounts due from customers, merchant service receivables, contract manufacturers, and unbilled amounts due from customers, net of the allowance for uncollectible accounts. The Company maintains an allowance for doubtful accounts for losses resulting from the inability of its customers to make required payments, including from a shortfall in the customer transaction fund flow from which the Company would normally collect amounts due. The provision for doubtful accounts relating to Accounts receivable balances is recorded within general and administrative expenses in the Consolidated Statements of Operations. The allowance is calculated under an expected loss model. We estimate our allowance using an aging analysis of the receivables balances, primarily based on historical loss experience, as there have been no significant changes in the mix or risk characteristics of the receivable revenue streams used to calculate historical loss rates. We also take into consideration that receivables for monthly service fees that are collected as part of the flow of funds from our transaction processing service have a lower risk profile than receivables for equipment and service fees billed under the Company’s standard payment terms of 30 to 60 days from invoice issuance, and adjust our aging analysis to incorporate those risk assessments. Accounts receivables are considered past due if the invoices are not collected based on the respective standard payment terms as agreed to with the customers. Current conditions are analyzed at each measurement date as we reassess whether our receivables continue to exhibit similar risk characteristics as the prior measurement date, and determine if the reserve calculation needs to be adjusted for new developments, such as a customer’s inability to meet its financial obligations. Lastly, we also factor reasonable and supportable economic expectations into our allowance estimate for the asset’s entire expected life. The Company writes off receivable balances against the allowance for doubtful accounts when management determines the balance is uncollectible and the Company ceases collection efforts. For the year ended June 30, 2022, the Company experienced increased write-offs compared to the year ended June 30, 2021, as management determined collection of older aged accounts receivable balances was not probable. These older aged accounts receivables balances were predominantly reserved for already as part of the Company's allowance for doubtful accounts estimate. Estimating an allowance requires us to apply judgment in relying on historical customer payment experience, regularly analyzing the financial condition of our customers, and developing macroeconomic forecasts to adequately cover expected credit losses on our receivables. By nature, such estimates are highly subjective, and it is possible that the amount of accounts receivables that we are unable to collect may be different than the amounts initially estimated in the allowance. |
FINANCE RECEIVABLES | FINANCE RECEIVABLES The Company offers extended payment terms to certain customers for equipment sales under its Quick Start Program. Agreements under the Quick Start Program are accounted for as sales-type leases. Accordingly, the discounted future minimum lease payments are classified as finance receivables in the Company’s Consolidated Balance Sheets. Finance receivables or Quick Start leases are generally for a sixty month Finance receivables are carried at their contractual amount net of allowance for doubtful accounts. On July 1, 2020, we adopted Topic 326. The effects of implementation of this standard is discussed below under "Measurement of Credits Losses on Financial Instruments". The provision for doubtful accounts relating to Finance receivables is recorded within general and administrative expenses in the Consolidated Statements of Operations. The allowance is calculated under an expected loss model. We estimate our allowance utilizing historical experience of payment performance, current conditions of the customer, and reasonable and supportable economic forecasts of collectability for the asset’s entire expected life, which is generally a sixty month Estimating an allowance requires us to apply judgment in relying on historical customer payment experience, regularly analyzing the financial condition of our customers, and developing macroeconomic forecasts to adequately cover expected |
INVENTORY, NET | INVENTORY, NET Inventory consists of finished goods. The company's inventories are valued at the lower of cost or net realizable value, generally using a weighted-average cost method. |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment are recorded at either cost or, in the instance of an acquisition, the estimated fair value on the date of the acquisition, and are depreciated on a straight-line basis over the estimated useful lives of the related assets. Leasehold improvements are amortized on the straight-line basis over the lesser of the estimated useful life of the asset or the respective lease term. Depreciation expense on our property and equipment, excluding property and equipment used for rentals, is included in “Depreciation and amortization” in the Consolidated Statements of Operations. Depreciation expense on our property and equipment used for rentals is included in “Cost of Subscription and transaction fees” in the Consolidated Statements of Operations. Additions and improvements that extend the estimated lives of the assets are capitalized, while expenditures for repairs and maintenance are expensed as incurred. |
GOODWILL | GOODWILL The Company’s goodwill represents the excess of cost over fair value of the net assets purchased in acquisitions. Goodwill is not amortized to earnings, but instead is subject to periodic testing for impairment. We test goodwill for impairment at least annually, or more frequently if events or changes in circumstances indicate that impairment may have occurred. Goodwill is reviewed for impairment utilizing either a qualitative or a quantitative goodwill impairment test. When we perform a qualitative assessment and determine the fair value more likely than not exceeds the carrying value, no further evaluation is necessary. When we perform the quantitative goodwill impairment test, we compare the fair value of our reporting unit to its carrying value. If the fair value of the reporting unit exceeds its carrying value, then goodwill is not considered impaired. An impairment charge is recognized for the amount by which, if any, the carrying value exceeds the reporting unit’s fair value. However, the loss recognized cannot exceed the reporting unit’s goodwill balance. The quantitative impairment test process requires valuation of the reporting unit, which we determine using the income approach, the market approach or a combination of the two approaches. Under the income approach, we calculate the fair value of the reporting unit based on the present value of estimated future cash flows derived from assumptions that include expected growth rates and revenues, projected expenses, discount rates, capital expenditures and income tax rates. Under the market approach, we estimate the fair value based on the quoted stock price, recent equity transactions of our business, market transactions involving similar businesses and market comparables. The Company has selected April 1 as its annual test date. The Company has concluded there has been no impairment of goodwill during the years ended June 30, 2022, 2021, or 2020. Subsequent to our annual impairment test, no indicators of impairment were identified. |
INTANGIBLE AND LONG-LIVED ASSETS | INTANGIBLE AND LONG-LIVED ASSETS The Company's intangible assets include trademarks, non-compete agreements, brand, developed technology, customer relationships and tradenames and were acquired in a purchase business combination. The Company carries these intangibles at cost, less accumulated amortization. Amortization is recorded on a straight-line basis over the estimated useful lives of the respective assets, which span between three |
INTANGIBLE AND LONG-LIVED ASSETS | The Company reviews its finite-lived intangible and other long-lived assets whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The carrying amount of an asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Fair value of finite-lived intangible assets and property and equipment is based on various valuation techniques. If the carrying amount of an asset or group of assets exceeds its net realizable value, the asset will be written down to its fair value. |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS 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. |
CONCENTRATION OF RISKS | CONCENTRATION OF RISKS Concentration of revenue with customers subject the Company to operating risks. Approximately 14%, 16% and 16% of the Company’s revenue for the years ended June 30, 2022, 2021 and 2020, respectively, were concentrated with one customer. The Company’s customers are principally located in the United States. Accounts receivable from one single contract manufacturer represented 16% and 5% of accounts receivables, net of allowance, as of June 30, 2022 and 2021, respectively. |
REVENUE RECOGNITION | REVENUE RECOGNITION The revenue recognition guidance provides a single model to determine when and how revenue is recognized. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of control of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company recognizes revenue using a five-step model resulting in revenue being recognized as performance obligations within a contract have been satisfied. The steps within that model include: (i) identifying the existence of a contract with a customer; (ii) identifying the performance obligations within the contract; (iii) determining the contract’s transaction price; (iv) allocating the transaction price to the contract’s performance obligations; and, (v) recognizing revenue as the contract’s performance obligations are satisfied. Judgment is required to apply the principles-based, five-step model for revenue recognition. Management is required to make certain estimates and assumptions about the Company’s contracts with its customers, including, among others, the nature and extent of its performance obligations, its transaction price amounts and any allocations thereof, the events which constitute satisfaction of its performance obligations, and when control of any promised goods or services is transferred to its customers. The standard also requires certain incremental costs incurred to obtain or fulfill a contract to be deferred and amortized on a systematic basis consistent with the transfer of goods or services to the customer. The Company provides an end-to-end payment solution which integrates hardware, software, and payment processing in the unattended retail market. The Company has contractual agreements with customers that set forth the general terms and conditions of the relationship, including pricing of goods and services, payment terms and contract duration. Revenue is recognized when the obligation under the terms of the Company’s contract with its customer is satisfied and is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. The Company’s business model is to act as the Merchant of Record for its sellers. We provide cashless vending payment services in exchange for monthly service fees, in addition to collecting usage-based consideration for completed transactions. The contracts we enter into with third-party suppliers provide us with the right to access and direct their services when processing a transaction. The Company combines the services provided by third-party suppliers to enable customers to accept cashless payment transactions, indicating that it controls all inputs in directing their use to create the combined service. Additionally, the Company sells cashless payment devices (e.g., e-Ports, Seed), which are either directly sold or leased through the Company's QuickStart or Cantaloupe ONE programs. The Company recognizes fees charged to our customers primarily on a gross basis as transaction revenue when we are the principal in respect of completing a payment transaction. As a principal to the transaction, when we are the Merchant of Record, we control the service of completing payments for our customers through the payment ecosystem. The fees paid to payment processors and other financial institutions are recognized as transaction expense. For certain transactions in which we act in the capacity as an agent, these transactions are recorded on a net basis. These are transactions in which we are not the Merchant of Record, and the customer is entering into a separate arrangement with a third party payment processor for the fulfillment of the payment service. Cashless vending services represent a single performance obligation as the combination of the services provided gives the customer the ability to accept cashless payments. The Company’s customers are contracting for integrated cashless services in connection with purchasing or leasing unattended point-of-sale devices. The activities when combined together are so integral to the customer’s ability to derive benefit from the service, that the activities are effectively inputs to a single promise to the customer. Certain services are distinct, but are not accounted for separately as the rights are coterminous, they are transferred concurrently and the outcome is the same as accounting for the services as individual performance obligations. The single performance obligation is determined to be a stand-ready obligation to process payments whenever a consumer intends to make a purchase at a point-of-sale device. As the Company is unable to predict the timing and quantity of transactions to be processed, the assessment of the nature of the performance obligation is focused on each time increment rather than the underlying activity. Therefore, cashless vending services are viewed to comprise a series of distinct days of service that are substantially the same and have the same pattern of transfer to the customer. As a result, the promise to stand ready is accounted for as a single performance obligation. Revenue related to cashless vending services is recognized over the period in which services are provided, with usage-based revenue recognized as transactions occur. Consideration for this service includes fixed fees for standing ready to process transactions, and generally also includes usage-based fees, priced as a percentage of transaction value and/or a specified fee per transaction processed. The total transaction price of usage-based services is determined to be variable consideration as it is based on unknown quantities of services to be performed over the contract term. The underlying variability is satisfied each day the service is performed and provided to the customer. Clients are billed for cashless vending services on a monthly basis and for transaction processing as transactions occur. Payment is due based on the Company’s standard payment terms which is typically within 30 to 60 days of invoice issuance. Equipment sales represent a separate performance obligation, the majority of which is satisfied at a point in time through outright sales or sales-type leases when the equipment is delivered to the customer. Revenues related to Cantaloupe ONE equipment are recognized over time as the customer obtains the right to use the equipment through an operating lease. Clients are billed for equipment sales on a monthly basis, with payment due based on the Company’s standard payment terms which is typically within 30 to 60 days of invoice issuance. The Company will occasionally offer volume discounts, rebates or credits on certain contracts, which is considered variable consideration. The Company uses either the most-likely or estimated value method to estimate the amount of the consideration, based on what the Company expects to better predict the amount of consideration to which it will be entitled to on a contract-by-contract basis. The Company will qualitatively assess if the variable consideration should be limited to prevent possible significant reversals of revenue in future reporting periods. The Company assesses the goods and/or services promised in each customer contract and separately identifies a performance obligation for each promise to transfer to the customer a distinct good or service. The Company then allocates the transaction price to each performance obligation in the contract using relative standalone selling prices. The Company determines standalone selling prices based on the price at which a good or service is sold separately. If the standalone selling price is not observable through historic data, the Company estimates the standalone selling price by considering all reasonably available information, including market data, trends, as well as other company- or customer-specific factors. Accounts Receivable and Contract Liabilities A contract with a customer creates legal rights and obligations. As the Company satisfies performance obligations under customer contracts, a right to unconditional consideration is recorded as an account receivable. Contract liabilities represent consideration received from customers in excess of revenues recognized (i.e., deferred revenue). Contract liabilities are classified as current or noncurrent based on the nature of the underlying contractual rights and obligations. Contract Costs The Company incurs costs to obtain contracts with customers, primarily in the form of commissions to sales employees. The Company recognizes as an asset the incremental costs of obtaining a contract with a customer if it expects to recover these costs. The Company currently does not incur material costs to fulfill its obligations under a contract once it is obtained but before transferring goods or services to the customer. Contract costs are amortized on a systematic basis consistent with the transfer to the customer of the goods or services to which the asset relates. A straight-line or proportional amortization method is used depending upon which method best depicts the pattern of transfer of the goods or services to the customer. The Company’s contracts frequently contain performance obligations satisfied at a point in time and overtime. In these instances, the Company amortizes the contract costs proportionally with the timing and pattern of revenue recognition. Amortization of costs to obtain a contract are included within sales and marketing expenses within the Consolidated Statements of Operations. In addition, these contract costs are evaluated for impairment by comparing, on a pooled basis, the expected future net cash flows from underlying customer relationships to the carrying amount of the capitalized contract costs. In order to determine the appropriate amortization period for contract costs, the Company considers a number of factors, including expected early terminations, estimated terms of customer relationships, the useful lives of technology Cantaloupe uses to provide goods and services to its customers, whether future contract renewals are expected and if there is any incremental commission to be paid on a contract renewal. The Company amortizes these assets over the expected period of benefit. Costs to obtain a contract with an expected period of benefit of one year or less are expensed when incurred. |
WARRANTIES | WarrantiesThe Company offers standard warranties that provide the customer with assurance that its equipment will function in accordance with contract specifications. The Company's standard warranties are not sold separately, but are included with each customer purchase. Warranties are not considered separate performance obligations and, therefore, are estimated and recorded at the time of sale. |
REVENUE RECOGNITION UNDER ASC 605 | Revenue from the sale of QuickStart lease of equipment is recognized when equipment is shipped to the customer. Transaction processing revenue is recognized upon the usage of the Company’s cashless payment and control network. Subscription fees for access to the Company’s devices and network services are recognized on a monthly basis. In all cases, revenue is only recognized when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed and determinable, and collection of the resulting receivable is reasonably assured. The Company estimates an allowance for subscription and transaction fee refunds on a monthly basis.Hardware is available to customers under the QuickStart program pursuant to which the customer would enter into a five-year non-cancelable lease with either the Company or a third-party leasing company for the devices. The Company then allocates the transaction price to each performance obligation in the contract using relative standalone selling prices. The Company determines standalone selling prices based on the price at which a good or service is sold separately. If the standalone selling price is not observable through historic data, the Company estimates the standalone selling price by considering all reasonably available information, including market data, trends, as well as other company- or customer-specific factors. The QuickStart contracts qualify for sales type lease accounting. At lease inception, the Company recognizes revenue and creates a finance receivable in an amount that represents the present value of minimum lease payments. Accordingly, a portion of the lease payments are recognized as interest income. At the end of the lease period, the customer would have the option to purchase the device at its residual value. Any customer payments received in advance and prior to the Company satisfying any performance obligations are recorded as deferred revenue and amortized as revenue is recognized. |
EQUIPMENT RENTAL | Equipment Rental The Company offers its customers a rental program for its hardware devices, Cantaloupe ONE platform. Cantaloupe ONE terms are 36 months rental agreements that transition to month-to-month agreements after the initial subscription commitment period. In accordance with ASC 842, “Leases”, the Company classifies the rental agreements as operating leases, with service fee revenue related to the leases included in subscription and transaction fees in the Consolidated Statements of Operations. Costs for the Cantaloupe ONE revenue, which consist of depreciation expense on the Cantaloupe ONE equipment, are included in cost of services in the Consolidated Statements of Operations. Equipment utilized by the Cantaloupe ONE program is included in property and equipment, net on the Consolidated Balance Sheets. |
LESSEE ACCOUNTING | Lessee Accounting The Company determines if an arrangement is a lease at inception. The Company has operating and finance leases for office space, warehouses and office equipment. Cantaloupe’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. Right-of-use 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 Right-of-Use (“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. Cantaloupe has lease agreements with lease and non-lease components. The Company uses 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 ROU assets and lease liabilities. Lease expense for operating lease payments is 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. |
LESSOR ACCOUNTING | Lessor Accounting The Company offers its customers financing for the lease of our POS electronic payment devices through our QuickStart program. 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 Cantaloupe ONE rental program. Cantaloupe ONE agreements are 36-month rental agreements that transition to month-to-month agreements after the initial subscription commitment period. The Company also uses 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, which was Topic 606 for the Company's operating leases. All QuickStart leases are sales-type and do not qualify for the election. |
SHIPPING AND HANDLING | SHIPPING AND HANDLING Shipping and handling fees billed to our customers in connection with sales are recorded as revenue. The costs incurred for shipping and handling of our product are recorded as cost of equipment. |
RESEARCH AND DEVELOPMENT EXPENSES | RESEARCH AND DEVELOPMENT EXPENSES Research and development expenses are expensed as incurred and primarily consist of personnel, contractors and product development costs. Research and development expenses, which are included within the technology and product development expenses and general and administrative expenses in the Consolidated Statements of Operations, were approximately $3.5 million, $3.9 million and $3.8 million, for the fiscal years ended June 30, 2022, 2021, and 2020, respectively. Our research and development initiatives focus on adding features and functionality to our system solutions through the development and utilization of our processing and reporting network and new technology. |
CAPITALIZATION OF INTERNAL-USE SOFTWARE AND CLOUD COMPUTING ARRANGEMENTS | CAPITALIZATION OF INTERNAL-USE SOFTWARE AND CLOUD COMPUTING ARRANGEMENTS We have significant expenditures associated with the technological maintenance and improvement of our network and technology offerings. These expenditures include both the cost of internal employees, who spend portions of their time on various technological projects, and the use of external temporary labor and consultants. Capitalization of internal-use software occurs when we have completed the preliminary project stage, management authorizes the project, management commits to funding the project, it is probable the project will be completed and the project will be used to perform the function intended. We are required to assess these expenditures and make a determination as to whether the costs should be expensed as incurred or are subject to capitalization. In making these determinations, we consider the stage of the development project, the probability of successful development and if the development is resulting in increased features and functionality. In addition, if we determine that a project qualifies for capitalization, the amount of capitalization is subject to various estimates, including the amount of time spent on the development work and the cost of internal employees and external consultants. Internal-use software is included within Property and equipment, net on our Consolidated Balance Sheets and is amortized over its estimated useful life, which is typically 3 to 7 years. We capitalize certain costs related to hosting arrangements that are service contracts (cloud computing arrangements) following the internal-use software capitalization criteria described above. Our cloud computing arrangements involve services we use to support internal corporate functions, our platforms and technology offerings. Capitalized costs relating to cloud computing arrangements are included within Prepaid expenses and other current assets or Other assets on our Consolidated Balance Sheets and are amortized on a straight-line basis over the estimated useful life, which is typically 3 to 5 years. |
ACCOUNTING FOR EQUITY AWARDS | ACCOUNTING FOR EQUITY AWARDS The cost of services received in exchange for an award of equity instruments related to employees and non-employees is based on the grant-date fair value of the award and allocated over the requisite service period of the award. When the requisite service period precedes the grant date, the Company begins recognizing compensation cost before a grant date is established. These costs are recorded within operating expenses in the Consolidated Statements of Operations. |
LOSS CONTINGENCIES | LOSS CONTINGENCIES From time to time, we are involved in litigation, claims, contingencies and other legal matters. The Company’s management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company's management team evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. |
SALES TAX RESERVE | SALES TAX RESERVE The Company has recorded a contingent liability for sales tax, included in accrued expenses in the Consolidated Balance Sheets. On a quarterly basis, the Company accrues interest on the unpaid balance. The estimated liability is adjusted upon the payment of sales tax related to the accrual, the changes in state tax laws that may impact the accrual and the expiration of the statute of limitations for open years under review. The liability includes significant judgments and estimates that may change in the future, and the actual liability may be different from our current estimate. Future changes to the sales tax reserve amount will be recorded within general and administrative expenses and interest expense in the Consolidated Statements of Operations and accrued expenses in the Consolidated Balance Sheets. |
INCOME TAXES | INCOME TAXES Income taxes are computed using the asset and liability method of accounting. Under the asset and liability method, a deferred tax asset or liability is recognized for estimated future tax effects attributable to temporary differences and carryforwards. The measurement of deferred income tax assets is adjusted by a valuation allowance, if necessary, to recognize future tax benefits only to the extent, based on available evidence, it is more likely than not such benefits will be realized. Tax positions must meet a “more-likely-than-not” recognition threshold to be recognized. The Company recognizes interest and penalties, if any, related to uncertain tax positions within general and administrative expenses in the Consolidated Statements of Operations. Interest and penalties related to uncertain tax positions incurred during the fiscal years ended June 30, 2022, 2021, and 2020 were immaterial. The Company files income tax returns in the United States federal jurisdiction and various state jurisdictions. The tax years ended June 30, 2017 through June 30, 2021 remain open to examination by taxing jurisdictions to which the Company is subject. While the statute of limitations has expired for years prior to the year ended June 30, 2017, changes in reported losses for those years are examinable by tax authorities to the extent that operating loss carryforwards from those prior years impact upon taxable income in current years. As of June 30, 2022, the Company did not have any income tax examinations in process. |
EARNINGS (LOSS) PER COMMON SHARE | EARNINGS (LOSS) PER COMMON SHARE Basic earnings (loss) per share are calculated by dividing net income (loss) applicable to common shares by the weighted average common shares outstanding for the period. Diluted earnings (loss) per share are calculated by dividing net income (loss) applicable to common shares by the weighted average common shares outstanding for the period plus the dilutive effects of common stock equivalents unless the effects of such common stock equivalents are anti-dilutive. For the years ended June 30, 2022, 2021 and 2020, no effect for common stock equivalents was considered in the calculation of diluted earnings (loss) per share because their effect was anti-dilutive. |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Accounting pronouncements adopted Measurement of Credit Losses on Financial Instruments The Company adopted "Financial Instruments - Credit Losses" (Topic 326) on July 1, 2020 using the modified retrospective approach through an adjustment to retained earnings, and began calculating our allowance for accounts and finance receivables under an expected loss model rather than an incurred loss model. The following table represents the impact of adoption of Topic 326 and a roll forward of the allowance for doubtful accounts for accounts and finance receivables for the years ending June 30, 2022 and 2021: Year ended June 30, 2022 2021 ($ in thousands) Accounts Receivable Finance Receivable Accounts Receivable Finance Receivable Balance, beginning of period $ 7,715 $ 1,109 $ 8,777 $ 150 Impact of adoption of Topic 326 — — (757) 409 Provision for expected losses 3,435 36 686 550 Write-offs (1,822) (385) (991) — Balance, end of period $ 9,328 $ 760 $ 7,715 $ 1,109 ASU 2019-12 - Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes On July 1, 2021, the Company adopted 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. The adoption of this accounting standard did not materially impact the Company’s 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 consolidated financial position, results of operations or cash flows. ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting In March 2020 and January 2021, the FASB issued ASU 2020-04, “Facilitation of the Effects of Reference Rate Reform on Financial Reporting” and ASU 2021-01, “Reference Rate Reform: Scope”, respectively. Together, the ASUs provide temporary optional expedients and exceptions for applying U.S. GAAP guidance on contract modifications and hedging relationships that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. These optional expedients and exceptions are effective beginning March 12, 2020 through December 31, 2022 and adoption is permitted at any time in the effective period. The Company is currently evaluating and assessing the impact these accounting standards will have on its consolidated financial statements and related disclosures and if it will elect these optional standards. Lessor Classification In July 2021, the FASB issued ASU 2021-05, “Lessors – Certain Leases with Variable Lease Payments” which requires lessors to classify leases as operating leases if they have variable lease payments that do not depend on an index or rate and would have selling losses if they were classified as sales-type or direct financing leases. ASU 2021-05 is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. We plan to adopt this pronouncement for our fiscal year beginning July 1, 2022. The Company has evaluated the impact of this accounting standard and does not expect there to be a material effect at adoption to our consolidated financial statements. Accounting for Debt and Equity Instruments In August 2020, the FASB issued ASU 2020-06, “Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” which simplifies accounting for convertible instruments and the derivatives scope exception for contracts in an entity's own equity and improves and amends the related earnings per share ("EPS") guidance. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. We plan to adopt this pronouncement for our fiscal year beginning July 1, 2022. The Company has evaluated the impact of this accounting standard and does not expect there to be a material effect at adoption to our consolidated financial statements. |
ACCOUNTING POLICIES (Tables)
ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule Of Rollforward Of Allowance For Doubtful Accounts | The following table represents the impact of adoption of Topic 326 and a roll forward of the allowance for doubtful accounts for accounts and finance receivables for the years ending June 30, 2022 and 2021: Year ended June 30, 2022 2021 ($ in thousands) Accounts Receivable Finance Receivable Accounts Receivable Finance Receivable Balance, beginning of period $ 7,715 $ 1,109 $ 8,777 $ 150 Impact of adoption of Topic 326 — — (757) 409 Provision for expected losses 3,435 36 686 550 Write-offs (1,822) (385) (991) — Balance, end of period $ 9,328 $ 760 $ 7,715 $ 1,109 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Assets and Liabilities | ($ in thousands) Balance Sheet Classification As of June 30, 2022 As of June 30, 2021 Assets Operating leases Operating lease right-of-use assets $ 2,370 $ 3,049 Liabilities Current Accrued expenses 1,538 1,166 Long-term Operating lease liabilities, non-current 2,366 3,645 Total lease liabilities $ 3,904 $ 4,811 |
Lease Costs | Components of lease cost are as follows: ($ in thousands) Year ended June 30, 2022 Year ended June 30, 2021 Operating lease costs* $ 1,923 $ 2,079 * 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) Year ended June 30, 2022 Year ended June 30, 2021 Supplemental cash flow information: Cash paid for amounts included in the measurement of operating lease liabilities $ 1,737 $ 1,635 Non-cash activity Right-of-use assets obtained in exchange for lease obligations Operating lease liabilities $ 471 $ — Weighted-average remaining lease term and discount rate for our leases are as follows: Year ended June 30, 2022 Year ended June 30, 2021 Weighted-average remaining lease term (years) Operating leases 3.4 4.3 Weighted-average discount rate Operating leases 6.8 % 6.9 % |
Maturities of Lease Liabilities, Operating Leases | Maturities of lease liabilities by fiscal year for our leases are as follows: ($ in thousands) Operating 2023 $ 1,758 2024 1,029 2025 707 2026 628 2027 265 Thereafter — Total lease payments $ 4,387 Less: Imputed interest (483) Present value of lease liabilities $ 3,904 |
Property and Equipment Used for Operating Lease Rental Program | Property and equipment used for the Company's operating lease rental program consisted of the following: ($ in thousands) June 30, June 30, Cost $ 25,242 26,753 Accumulated depreciation (22,914) (24,487) Net $ 2,328 $ 2,266 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Based on similar operational characteristics, the Company's revenue is disaggregated as follows: Year-ended June 30, ($ in thousands) 2022 2021 2020 Transaction fees $ 110,695 $ 85,497 $ 81,244 Subscription fees 58,155 53,745 51,923 Subscription and transaction fees 168,850 139,242 133,167 Equipment sales 36,352 27,697 29,986 Total revenues $ 205,202 $ 166,939 $ 163,153 |
Contract Liability | The Company's contract liability (i.e., deferred revenue) balances are as follows: Year ended June 30, ($ in thousands) 2022 2021 Deferred revenue, beginning of the period $ 1,763 $ 1,698 Deferred revenue, end of the period 1,893 1,763 Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period 383 595 |
LOSS PER SHARE CALCULATION (Tab
LOSS PER SHARE CALCULATION (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted loss per share | The following table presents the calculation of basic and diluted loss per share: Year ended June 30, ($ in thousands, except share and per share data) 2022 2021 2020 Numerator for basic and diluted loss per share Net loss $ (1,703) $ (8,705) $ (40,595) Preferred dividends (668) (668) (668) Net loss available to common shareholders $ (2,371) $ (9,373) $ (41,263) Denominator for basic loss per share - Weighted average shares outstanding 71,091,790 67,002,438 62,980,193 Effect of dilutive potential common shares — — — Denominator for diluted loss per share - Adjusted weighted average shares outstanding 71,091,790 67,002,438 62,980,193 Basic and diluted loss per share $ (0.03) $ (0.14) $ (0.66) |
ACQUISITION (Tables)
ACQUISITION (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the total consideration paid for Yoke, total net assets acquired, identifiable assets and goodwill recognized at the acquisition date: ($ in thousands) Amount Consideration Cash $ 2,966 Contingent consideration arrangement 1,000 Fair value of total consideration transferred 3,966 Recognized amounts of identifiable assets Total net assets acquired 21 Identifiable intangible assets 1,235 Total identifiable net assets 1,256 Goodwill $ 2,710 |
FINANCE RECEIVABLES (Tables)
FINANCE RECEIVABLES (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Schedule of finance receivables | As of June 30, 2022 and 2021, finance receivables consist of the following: As of June 30, ($ in thousands) 2022 2021 Current finance receivables, net $ 6,721 $ 7,967 Finance receivables due after one year, net 14,727 11,632 Total finance receivables, net of allowance of $760 and $1,109, respectively $ 21,448 $ 19,599 |
Schedule of credit quality indicators | At June 30, 2022, the gross lease receivable by current payment performance on a contractual basis and year of origination consisted of the following: Leases by Origination ($ in thousands) Up to 1 Year Ago Between 1 and 2 Years Ago Between 2 and 3 Years Ago Between 3 and 4 Years Ago Between 4 and 5 Years Ago More than 5 Years Ago Total Current $ 7,451 $ 5,047 $ 2,758 $ 2,593 $ 2,807 $ 103 $ 20,759 30 days and under 18 10 32 56 94 3 213 31 - 60 days 25 23 26 58 100 — 232 61 - 90 days 25 14 20 46 91 — 196 Greater than 90 days 41 47 97 232 391 — 808 Total finance receivables $ 7,560 $ 5,141 $ 2,933 $ 2,985 $ 3,483 $ 106 $ 22,208 At June 30, 2021, the gross lease receivable by current payment performance on a contractual basis and year of origination consisted of the following: Leases by Origination ($ in thousands) Up to 1 Year Ago Between 1 and 2 Years Ago Between 2 and 3 Years Ago Between 3 and 4 Years Ago Between 4 and 5 Years Ago More than 5 Years Ago Total Current $ 6,736 $ 3,970 $ 3,942 $ 3,081 $ 1,358 $ 31 $ 19,118 30 days and under 19 67 90 93 11 1 281 31 - 60 days 4 9 22 2 1 — 38 61 - 90 days 10 42 66 54 10 — 182 Greater than 90 days 46 69 490 419 54 11 1,089 Total finance receivables $ 6,815 $ 4,157 $ 4,610 $ 3,649 $ 1,434 $ 43 $ 20,708 At June 30, 2022, credit quality indicators by year of origination consisted of the following: Leases by Origination ($ in thousands) Up to 1 Year Ago Between 1 and 2 Years Ago Between 2 and 3 Years Ago Between 3 and 4 Years Ago Between 4 and 5 Years Ago More than 5 Years Ago Total High ratio customers $ 7,498 $ 4,853 $ 2,688 $ 2,623 $ 2,950 $ 102 $ 20,714 Low ratio customers 62 288 245 362 533 4 1,494 Total finance receivables $ 7,560 $ 5,141 $ 2,933 $ 2,985 $ 3,483 $ 106 $ 22,208 At June 30, 2021, credit quality indicators by year of origination consisted of the following: Leases by Origination ($ in thousands) Up to 1 Year Ago Between 1 and 2 Years Ago Between 2 and 3 Years Ago Between 3 and 4 Years Ago Between 4 and 5 Years Ago More than 5 Years Ago Total High ratio customers $ 6,415 $ 3,824 $ 3,793 $ 2,920 $ 1,290 $ 24 $ 18,266 Low ratio customers 400 333 817 729 144 19 2,442 Total finance receivables $ 6,815 $ 4,157 $ 4,610 $ 3,649 $ 1,434 $ 43 $ 20,708 |
Schedule of age analysis of finance receivables | The following table represents a rollforward of the allowance for finance receivables for the year ending June 30, 2022 and 2021: ($ in thousands) Year ended June 30, 2022 Year ended June 30, 2021 Balance at June 30 $ 1,109 $ 150 Impact of ASC 326* — 409 Provision for expected losses 36 550 Write-offs (385) — Balance June 30 $ 760 $ 1,109 * The Company adopted ASC 326 on July 1, 2020. |
Schedule of financing receivable | Cash to be collected on our performing finance receivables due for each of the fiscal years after June 30, 2022 are as follows: ($ in thousands) 2023 $ 2,937 2024 1,841 2025 3,420 2026 6,039 2027 9,368 Thereafter 1,384 Total amounts to be collected 24,989 Less: interest (2,781) Less: allowance for doubtful accounts (760) Total finance receivables $ 21,448 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Property and equipment consisted of the following: As of June 30, 2022 ($ in thousands) Useful Cost Accumulated Net Computer equipment and software 3-7 years $ 6,758 $ (6,404) $ 354 Internal-use software 3-5 years 12,787 (2,859) 9,928 Property and equipment used for rental program 5 years 25,242 (22,914) 2,328 Furniture and equipment 3-7 years 1,529 (1,396) 133 Leasehold improvements (a) 286 (245) 41 $ 46,602 $ (33,818) $ 12,784 As of June 30, 2021 ($ in thousands) Useful Cost Accumulated Net Computer equipment and software 3-7 years $ 6,497 $ (6,212) $ 285 Internal-use software 3-5 years 4,523 (1,821) 2,702 Property and equipment used for rental program 5 years 26,753 (24,487) 2,266 Furniture and equipment 3-7 years 1,471 (1,222) 249 Leasehold improvements (a) 192 (124) 68 $ 39,436 $ (33,866) $ 5,570 (a) Lesser of lease term or estimated useful life |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible asset balances | Goodwill and intangible asset balances consisted of the following: As of June 30, 2022 Amortization ($ in thousands) Gross Accumulated Amortization Net Intangible assets: Brand and tradenames $ 1,705 $ (1,133) $ 572 1 - 7 years Developed technology 11,819 (8,761) 3,058 5 - 6 years Customer relationships 19,339 (5,022) 14,317 5 - 18 years Total intangible assets $ 32,863 $ (14,916) $ 17,947 Goodwill $ 66,656 $ — $ 66,656 Indefinite As of June 30, 2021 Amortization ($ in thousands) Gross Accumulated Amortization Net Intangible assets: Brand and tradenames $ 1,640 $ (840) $ 800 3 - 7 years Developed technology 10,939 (6,890) 4,049 5 - 6 years Customer relationships 19,049 (3,906) 15,143 10 - 18 years Total intangible assets $ 31,628 $ (11,636) $ 19,992 Goodwill $ 63,945 $ — $ 63,945 Indefinite |
Schedule of estimated annual amortization expense | Estimated annual amortization expense for intangible assets is as follows (in thousands): 2023 $ 3,270 2024 2,151 2025 1,389 2026 1,292 2027 1,069 Thereafter 8,776 $ 17,947 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Accrued Liabilities [Abstract] | |
Schedule of accrued expenses | Accrued expenses consisted of the following as of June 30, 2022 and 2021: As of June 30, ($ in thousands) 2022 2021 Accrued sales tax $ 14,694 $ 17,099 Accrued compensation and related sales commissions 3,289 4,233 Operating lease liabilities - current 1,538 1,166 Accrued professional fees 4,200 1,739 Contingent consideration arrangement for Yoke Acquisition 1,000 — Accrued other taxes and filing fees 2,036 1,450 Accrued other 1,397 773 Total accrued expenses $ 28,154 $ 26,460 |
DEBT AND OTHER FINANCING ARRA_2
DEBT AND OTHER FINANCING ARRANGEMENTS (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt and Other Financing Arrangements | The Company's debt and other financing arrangements as of June 30, 2022 and 2021 consisted of the following: As of June 30, ($ in thousands) 2022 2021 JPMorgan Credit Facility* 14,813 14,437 Other obligations 70 113 Less: unamortized issuance costs and debt discount (261) (231) Total 14,622 14,319 Less: debt and other financing arrangements, current (692) (675) Debt and other financing arrangements, noncurrent $ 13,930 $ 13,644 *See discussion below on amendment to the JPMorgan Credit Facility. Details of interest expense presented on the Consolidated Statements of Operations are as follows: Year ended June 30, ($ in thousands) 2022 2021 2020 2020 Antara Term Facility $ — $ 2,779 $ 1,218 2021 JPMorgan Credit Facility 904 1,006 — Interest expense related to change in sales tax reserve (386) 218 558 2018 JPMorgan Revolving Credit Facility — — 303 2018 JPMorgan Term Loan — — 160 Other interest expense 6 10 358 Total interest expense $ 524 $ 4,013 $ 2,597 |
Schedule of Maturities of Debt and Other Financing Arrangements | The expected maturities associated with the Company’s outstanding debt and other financing arrangements as of June 30, 2022, were as follows: 2023 770 2024 897 2025 1,250 2026 11,966 2027 — Principal amounts payable 14,883 Unamortized issuance costs (261) Total outstanding debt $ 14,622 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of benefit (provision) for income taxes | The provision for income taxes for the years ended June 30, 2022, 2021 and 2020 is comprised of the following: Year ended June 30, ($ in thousands) 2022 2021 2020 Current: Federal $ — $ — $ 126 State (179) (328) (57) Total current (179) (328) 69 Deferred: Federal (18) (12) (156) State 11 (30) 86 Total deferred (7) (42) (70) Total income tax provision $ (186) $ (370) $ (1) |
Schedule of income tax benefit in the provision for income taxes | A reconciliation of the provision for income taxes for the years ended June 30, 2022, 2021 and 2020 to the indicated provision based on income (loss) before the provision for income taxes at the federal statutory rate of 21.0% for the fiscal years ended June 30, 2022, June 30, 2021, and June 30, 2020 is as follows: Year ended June 30, ($ in thousands) 2022 2021 2020 Indicated benefit at federal statutory rate $ 319 $ 1,648 $ 8,514 Effects of permanent differences Stock compensation (184) 168 (226) Other permanent differences (106) 608 (106) State income taxes, net of federal benefit (275) 116 1,393 Changes related to prior years — — 489 Changes in valuation allowances 184 (2,927) (10,139) Other (124) 17 74 Provision for income taxes $ (186) $ (370) $ (1) |
Schedule of deferred tax assets and liabilities | The net deferred tax assets arose primarily from net operating loss carryforwards, as well as the use of different accounting methods for financial statement and income tax reporting purposes as follows: As of June 30, ($ in thousands) 2022 2021 Deferred tax assets: Net operating loss carryforwards $ 47,984 $ 46,851 Asset reserves 6,666 7,231 Deferred research and development 1,503 1,420 Stock-based compensation 3,416 2,620 Other (143) 2,135 59,426 60,257 Deferred tax liabilities: Intangibles (4,316) (4,956) Deferred tax assets, net 55,110 55,301 Valuation allowance (55,296) (55,480) Deferred tax liabilities $ (186) $ (179) |
Summary of activity related to unrecognized income tax benefits | The following table summarizes the activity related to unrecognized income tax benefits: Year ended June 30, ($ in thousands) 2022 2021 2020 Balance at the beginning of the year $ 444 $ 207 $ 210 Gross increases and decreases related to current period tax positions — — — Gross increases and decreases related to prior period tax positions 128 237 (3) Balance at the end of the year $ 572 $ 444 $ 207 |
STOCK BASED COMPENSATION PLANS
STOCK BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of stock based compensation plans | The Company has four active stock based compensation plans at June 30, 2022 as shown in the table below: Date Approved Name of Plan Type of Plan Authorized June 2013 2013 Stock Incentive Plan Stock 500,000 June 2014 2014 Stock Option Incentive Plan Stock options 750,000 June 2015 2015 Equity Incentive Plan Stock & stock options 1,250,000 April 2018 2018 Equity Incentive Plan Stock & stock options 4,000,000 6,500,000 |
Schedule of common stock for future issuance | As of June 30, 2022, the Company had reserved shares of Common Stock for future issuance for the following: Common Stock Reserved Shares Conversions of Preferred Stock and cumulative Preferred Stock dividends 106,141 Issuance upon exercise of stock options granted to current CEO 1,000,000 Issuance of shares to former CEO George Jensen upon the occurrence of a Cantaloupe transaction (1) 140,000 Issuance under 2014 Stock Option Incentive Plan 115,687 Issuance under 2015 Equity Incentive Plan 392,159 Issuance under 2018 Equity Incentive Plan 179,843 Total shares reserved for future issuance 1,933,830 __________________________________________ (1) Represents 140,000 shares issuable to our former CEO George Jensen upon the occurrence of a "USA Transaction" as such term is defined in the Jensen Stock Agreement dated September 27, 2011 by and between the Company and George R. Jensen. |
Schedule of stock option granted weighted average assumptions | The fair value of options granted during the years ended June 30, 2022, 2021, and 2020 was determined using the following assumptions: For the year ended June 30, 2022 2021 2020 Expected volatility 73.2 - 74.6% 74.3 - 77.3% 74.6 - 90.1% Expected life (years) 4.5 - 4.6 4.5 3.5 - 4.8 Expected dividends 0.0% 0.0% 0.0% Risk-free interest rate 1.0 - 2.9% 0.2-0.7% 0.3-1.6% |
Schedule of information related to outstanding options | The following tables provide information about outstanding options for the years ended June 30, 2022, 2021, and 2020: For the year ended June 30, 2022 Number of Options Weighted Average Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding options, beginning of period 2,952,092 $ 6.97 5.6 $ 14,419 Granted 904,500 $ 8.86 Exercised (121,248) $ 6.30 $ (53) Forfeited (205,511) $ 8.09 Expired — $ — Outstanding options, end of period 3,529,833 $ 7.41 4.5 $ 194 Exercisable options, end of period 1,538,302 $ 6.79 4.5 $ 183 For the year ended June 30, 2021 Number of Options Weighted Average Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding options, beginning of period 2,437,425 $ 6.43 6.2 $ 1,411 Granted 755,000 $ 8.40 Exercised (74,667) $ 3.81 $ (601) Forfeited (165,666) $ 6.90 Expired — $ — Outstanding options, end of period 2,952,092 $ 6.97 5.6 $ 14,419 Exercisable options, end of period 1,040,131 $ 6.52 5.1 $ 5,558 For the year ended June 30, 2020 Number of Options Weighted Average Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding options, beginning of period 1,127,098 $ 4.84 4.3 $ 2,917 Granted 2,075,760 $ 6.47 Exercised (440,435) $ 2.48 $ (595) Forfeited (324,998) $ 6.55 Expired — $ — Outstanding options, end of period 2,437,425 $ 6.43 6.2 $ 1,411 Exercisable options, end of period 560,871 $ 6.01 4.8 $ 559 |
Schedule of nonvested share activity | A summary of the status of the Company’s nonvested common shares and RSUs as of June 30, 2022, 2021, and 2020, and changes during the years then ended is presented below: Shares Weighted-Average Nonvested at June 30, 2019 38,971 $ 9.19 Granted 651,715 7.28 Vested (109,050) 7.52 Forfeited (368,622) 7.89 Nonvested at June 30, 2020 213,014 $ 6.50 Granted 187,848 10.33 Vested (248,016) 7.71 Forfeited (15,000) $ 6.28 Nonvested at June 30, 2021 137,846 $ 9.57 Granted 507,729 7.33 Vested (101,515) 10.34 Forfeited (95,152) 8.89 Nonvested at June 30, 2022 448,908 $ 7.00 |
Schedule of stock-based compensation expense | A summary of the Company's stock-based compensation expense recognized during the years ended June 30, 2022, 2021, and 2020 is as follows (in thousands): For the year ended June 30, Award type 2022 2021 2020 Stock options $ 4,424 $ 7,806 $ 2,181 Stock grants 1,824 1,269 848 Total stock-based compensation expense $ 6,248 $ 9,075 $ 3,029 A summary of the Company's unrecognized stock-based compensation expense as of June 30, 2022 is as follows: As of June 30, 2022 Award type Unrecognized Expense Weighted Average Recognition Period Stock options $ 4,223 2.4 Stock grants $ 2,131 1.5 |
PREFERRED STOCK (Tables)
PREFERRED STOCK (Tables) | 12 Months Ended |
Jun. 30, 2022 | |
Preferred Stock [Abstract] | |
Schedule of preferred stock | The Series A Convertible Preferred Stock liquidation preference as of June 30, 2022 and 2021 is as follows: ($ in thousands) June 30, June 30, For shares outstanding at $10.00 per share $ 4,451 $ 4,451 Cumulative unpaid dividends 17,662 16,996 $ 22,113 $ 21,447 |
ACCOUNTING POLICIES - Accounts
ACCOUNTING POLICIES - Accounts Receivable and Allowance For Doubtful Accounts (Details) | 12 Months Ended |
Jun. 30, 2022 segment | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Number of operating segments | 1 |
Minimum | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Payment terms | 30 days |
Maximum | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Payment terms | 60 days |
ACCOUNTING POLICIES - Finance R
ACCOUNTING POLICIES - Finance Receivables (Details) | 12 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Term of notes receivable or quick start leases | 60 months |
ACCOUNTING POLICIES - Recent Ac
ACCOUNTING POLICIES - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Accounts Receivable | ||
Balance, beginning of period | $ 7,715 | $ 8,777 |
Provision for expected losses | 3,435 | 686 |
Write-offs | (1,822) | (991) |
Balance, end of period | 9,328 | 7,715 |
Finance Receivable | ||
Balance, beginning of period | 1,109 | 150 |
Provision for expected losses | 36 | 550 |
Write-offs | (385) | 0 |
Balance, end of period | 760 | 1,109 |
Cumulative Effect, Period of Adoption, Adjustment | ||
Accounts Receivable | ||
Balance, beginning of period | 0 | (757) |
Balance, end of period | 0 | |
Finance Receivable | ||
Balance, beginning of period | $ 0 | 409 |
Balance, end of period | $ 0 |
ACCOUNTING POLICIES - Inventory
ACCOUNTING POLICIES - Inventory, Net (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Jun. 30, 2021 |
Accounting Policies [Abstract] | ||
Inventory reserve | $ 2.5 | $ 3.5 |
ACCOUNTING POLICIES - Goodwill
ACCOUNTING POLICIES - Goodwill (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accounting Policies [Abstract] | |||
Goodwill, impairment loss | $ 0 | $ 0 | $ 0 |
ACCOUNTING POLICIES - Intangibl
ACCOUNTING POLICIES - Intangible and Long-lived Assets (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | $ 0 | $ 0 | |
Operating lease right-of-use asset impairment | $ 0 | $ 1,578,000 | $ 0 |
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 3 years | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 18 years |
ACCOUNTING POLICIES - Concentra
ACCOUNTING POLICIES - Concentration of Risks And Revenue Recognition (Details) - Revenue Benchmark | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Customer One | Revenue from Rights Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 14% | 16% | 16% |
Manufacturer One | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 16% | 5% |
ACCOUNTING POLICIES - Revenue R
ACCOUNTING POLICIES - Revenue Recognition and Equipment Rental (Details) | 12 Months Ended |
Jun. 30, 2022 | |
Property, Plant and Equipment [Line Items] | |
Term of non-cancelable lease with agreement | 5 years |
Lessor, operating lease term | 36 months |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Payment terms | 30 days |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Payment terms | 60 days |
ACCOUNTING POLICIES - Leases (D
ACCOUNTING POLICIES - Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Lessor, Lease, Description [Line Items] | |||
Operating lease right-of-use asset impairment | $ 0 | $ 1,578 | $ 0 |
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 |
ACCOUNTING POLICIES - Research
ACCOUNTING POLICIES - Research and Development (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Accounting Policies [Abstract] | |||
Research and development expense | $ 3.5 | $ 3.9 | $ 3.8 |
ACCOUNTING POLICIES - Software
ACCOUNTING POLICIES - Software Development Costs (Details) | 12 Months Ended |
Jun. 30, 2022 | |
Internal-use software | Minimum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Estimated useful life | 3 years |
Internal-use software | Maximum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Estimated useful life | 7 years |
Cloud computing arrangements | Minimum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Estimated useful life | 3 years |
Cloud computing arrangements | Maximum | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Estimated useful life | 5 years |
LEASES - Assets and Liabilities
LEASES - Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Assets | ||
Operating leases | $ 2,370 | $ 3,049 |
Liabilities | ||
Operating lease liabilities - current | $ 1,538 | $ 1,166 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities, Current | Accrued Liabilities, Current |
Operating lease liabilities, non-current | $ 2,366 | $ 3,645 |
Total lease liabilities | $ 3,904 | $ 4,811 |
LEASES - Components of Lease Co
LEASES - Components of Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | ||
Operating lease costs | $ 1,923 | $ 2,079 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 1,737 | $ 1,635 |
Operating lease liabilities | $ 471 | $ 0 |
LEASES - Weighted-Average Remai
LEASES - Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate (Details) | Jun. 30, 2022 | Jun. 30, 2021 |
Leases [Abstract] | ||
Weighted-average remaining lease term, Operating leases | 3 years 4 months 24 days | 4 years 3 months 18 days |
Weighted-average discount rate, Operating leases | 6.80% | 6.90% |
LEASES - Maturities of Lease Li
LEASES - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Operating Leases | ||
2023 | $ 1,758 | |
2024 | 1,029 | |
2025 | 707 | |
2026 | 628 | |
2027 | 265 | |
Thereafter | 0 | |
Total lease payments | 4,387 | |
Less: Imputed interest | (483) | |
Present value of lease liabilities | $ 3,904 | $ 4,811 |
LEASES - Property and Equipment
LEASES - Property and Equipment Costs (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Leases [Abstract] | ||
Cost | $ 25,242 | $ 26,753 |
Accumulated depreciation | (22,914) | (24,487) |
Net | $ 2,328 | $ 2,266 |
REVENUE - Schedule of Revenue (
REVENUE - Schedule of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 205,202 | $ 166,939 | $ 163,153 |
Transaction fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 110,695 | 85,497 | 81,244 |
Subscription fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 58,155 | 53,745 | 51,923 |
Subscription and transaction fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 168,850 | 139,242 | 133,167 |
Equipment sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 36,352 | $ 27,697 | $ 29,986 |
REVENUE - Contract Liability (D
REVENUE - Contract Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue, beginning of the period | $ 1,763 | $ 1,698 |
Deferred revenue, end of the period | 1,893 | 1,763 |
Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period | $ 383 | $ 595 |
REVENUE - Additional Informatio
REVENUE - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Amortization of capitalized contract costs | $ 0.7 | $ 0.6 |
Prepaid Expenses and Other Current Assets | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Capitalized costs to obtain contracts | 0.5 | 0.4 |
Noncurrent Assets | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Capitalized costs to obtain contracts | $ 2.3 | $ 2 |
LOSS PER SHARE CALCULATION - Ca
LOSS PER SHARE CALCULATION - Calculation of Earning Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Numerator for Basic and Diluted Per Share [Abstract] | |||
Net loss | $ (1,703) | $ (8,705) | $ (40,595) |
Preferred dividends | (668) | (668) | (668) |
Net loss available to common shareholders | $ (2,371) | $ (9,373) | $ (41,263) |
Denominator for basic loss per share - weighted average shares outstanding (in shares) | 71,091,790 | 67,002,438 | 62,980,193 |
Effect of dilutive potential common shares (in shares) | 0 | 0 | 0 |
Denominator for diluted loss per share (in shares) | 71,091,790 | 67,002,438 | 62,980,193 |
Basic loss per share (in USD per share) | $ (0.03) | $ (0.14) | $ (0.66) |
Diluted loss per share (in USD per share) | $ (0.03) | $ (0.14) | $ (0.66) |
LOSS PER SHARE CALCULATION - Ad
LOSS PER SHARE CALCULATION - Additional Information (Details) - shares shares in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |||
Antidilutive shares excluded from the calculation of diluted loss per shares (in shares) | 5 | 4 | 3 |
ACQUISITION - Narrative (Detail
ACQUISITION - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jul. 27, 2022 | Aug. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Business Acquisition [Line Items] | |||||
Cash paid for acquisition | $ (2,966) | $ 0 | $ 0 | ||
Contingent consideration arrangement for Yoke Acquisition | 1,000 | 0 | |||
Goodwill | $ 2,700 | $ 66,656 | $ 63,945 | ||
Yoke | |||||
Business Acquisition [Line Items] | |||||
Cash paid for acquisition | (3,000) | ||||
Contingent consideration arrangement | 1,000 | ||||
Contingent consideration arrangement for Yoke Acquisition | 1,000 | ||||
Goodwill | 2,710 | ||||
Yoke | Subsequent Event | |||||
Business Acquisition [Line Items] | |||||
Cash paid for acquisition | $ (1,000) | ||||
Developed Technology Rights | Yoke | |||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired | 900 | ||||
Customer relationships | Yoke | |||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired | 300 | ||||
Trade Names | Yoke | |||||
Business Acquisition [Line Items] | |||||
Intangible assets acquired | $ 100 |
ACQUISITION - Schedule of total
ACQUISITION - Schedule of total consideration paid for acquisition (Details) - USD ($) $ in Thousands | 1 Months Ended | ||
Aug. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Recognized amounts of identifiable assets | |||
Goodwill | $ 2,700 | $ 66,656 | $ 63,945 |
Yoke | |||
Consideration | |||
Cash paid for acquisitions | 2,966 | ||
Contingent consideration arrangement | 1,000 | ||
Fair value of total consideration transferred | 3,966 | ||
Recognized amounts of identifiable assets | |||
Total net assets acquired | 21 | ||
Identifiable intangible assets | 1,235 | ||
Total identifiable net assets | 1,256 | ||
Goodwill | $ 2,710 |
FINANCE RECEIVABLES - Narrative
FINANCE RECEIVABLES - Narrative (Details) | 12 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Finance receivables sales-type lease term | 60 months |
FINANCE RECEIVABLES - Informati
FINANCE RECEIVABLES - Information Regarding Finance Receivables (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Receivables [Abstract] | |||
Current finance receivables, net | $ 6,721 | $ 7,967 | |
Finance receivables due after one year, net | 14,727 | 11,632 | |
Total finance receivables | 21,448 | 19,599 | |
Finance receivables, allowance | $ 760 | $ 1,109 | $ 150 |
FINANCE RECEIVABLES - Credit Ri
FINANCE RECEIVABLES - Credit Risk Profile Based on Payment Activity (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Up to 1 Year Ago | $ 7,560 | $ 6,815 |
Between 1 and 2 Years Ago | 5,141 | 4,157 |
Between 2 and 3 Years Ago | 2,933 | 4,610 |
Between 3 and 4 Years Ago | 2,985 | 3,649 |
Between 4 and 5 Years Ago | 3,483 | 1,434 |
More than 5 Years Ago | 106 | 43 |
Total finance receivables | 22,208 | 20,708 |
High ratio customers | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Up to 1 Year Ago | 7,498 | 6,415 |
Between 1 and 2 Years Ago | 4,853 | 3,824 |
Between 2 and 3 Years Ago | 2,688 | 3,793 |
Between 3 and 4 Years Ago | 2,623 | 2,920 |
Between 4 and 5 Years Ago | 2,950 | 1,290 |
More than 5 Years Ago | 102 | 24 |
Total finance receivables | 20,714 | 18,266 |
Low ratio customers | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Up to 1 Year Ago | 62 | 400 |
Between 1 and 2 Years Ago | 288 | 333 |
Between 2 and 3 Years Ago | 245 | 817 |
Between 3 and 4 Years Ago | 362 | 729 |
Between 4 and 5 Years Ago | 533 | 144 |
More than 5 Years Ago | 4 | 19 |
Total finance receivables | 1,494 | 2,442 |
Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Up to 1 Year Ago | 7,451 | 6,736 |
Between 1 and 2 Years Ago | 5,047 | 3,970 |
Between 2 and 3 Years Ago | 2,758 | 3,942 |
Between 3 and 4 Years Ago | 2,593 | 3,081 |
Between 4 and 5 Years Ago | 2,807 | 1,358 |
More than 5 Years Ago | 103 | 31 |
Total finance receivables | 20,759 | 19,118 |
30 days and under | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Up to 1 Year Ago | 18 | 19 |
Between 1 and 2 Years Ago | 10 | 67 |
Between 2 and 3 Years Ago | 32 | 90 |
Between 3 and 4 Years Ago | 56 | 93 |
Between 4 and 5 Years Ago | 94 | 11 |
More than 5 Years Ago | 3 | 1 |
Total finance receivables | 213 | 281 |
31 - 60 days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Up to 1 Year Ago | 25 | 4 |
Between 1 and 2 Years Ago | 23 | 9 |
Between 2 and 3 Years Ago | 26 | 22 |
Between 3 and 4 Years Ago | 58 | 2 |
Between 4 and 5 Years Ago | 100 | 1 |
More than 5 Years Ago | 0 | 0 |
Total finance receivables | 232 | 38 |
61 - 90 days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Up to 1 Year Ago | 25 | 10 |
Between 1 and 2 Years Ago | 14 | 42 |
Between 2 and 3 Years Ago | 20 | 66 |
Between 3 and 4 Years Ago | 46 | 54 |
Between 4 and 5 Years Ago | 91 | 10 |
More than 5 Years Ago | 0 | 0 |
Total finance receivables | 196 | 182 |
Greater than 90 days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Up to 1 Year Ago | 41 | 46 |
Between 1 and 2 Years Ago | 47 | 69 |
Between 2 and 3 Years Ago | 97 | 490 |
Between 3 and 4 Years Ago | 232 | 419 |
Between 4 and 5 Years Ago | 391 | 54 |
More than 5 Years Ago | 0 | 11 |
Total finance receivables | $ 808 | $ 1,089 |
FINANCE RECEIVABLES - Schedule
FINANCE RECEIVABLES - Schedule of Credit Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | $ 1,109 | $ 150 |
Provision for expected losses | 36 | 550 |
Write-offs | (385) | 0 |
Balance, end of period | 760 | 1,109 |
Cumulative Effect, Period of Adoption, Adjustment | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | $ 0 | 409 |
Balance, end of period | $ 0 |
FINANCE RECEIVABLES - Summary o
FINANCE RECEIVABLES - Summary of Finance receivables Fiscal Years (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 |
Receivables [Abstract] | |||
2023 | $ 2,937 | ||
2024 | 1,841 | ||
2025 | 3,420 | ||
2026 | 6,039 | ||
2027 | 9,368 | ||
Thereafter | 1,384 | ||
Total amounts to be collected | 24,989 | ||
Less: interest | (2,781) | ||
Less: allowance for doubtful accounts | (760) | $ (1,109) | $ (150) |
Total finance receivables | $ 21,448 | $ 19,599 |
PROPERTY AND EQUIPMENT, NET - S
PROPERTY AND EQUIPMENT, NET - Summary of Property And Equipment at Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Useful life, rental program | 5 years | 5 years |
Property and equipment, cost, rental program, Cost | $ 25,242 | $ 26,753 |
Property, plant and equipment, gross, Cost | 46,602 | 39,436 |
Property and equipment used for rental program, Accumulated Depreciation | (22,914) | (24,487) |
Property, plant, and equipment, Accumulated Depreciation | (33,818) | (33,866) |
Net | 2,328 | 2,266 |
Property, plant, and equipment, Net | 12,784 | 5,570 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, excluding lessor asset under operating lease, before accumulated depreciation, Cost | 6,758 | 6,497 |
Property, plant, and equipment, excluding lessor asset under operating lease, Accumulated Depreciation | (6,404) | (6,212) |
Property, plant, and equipment, excluding lessor asset under operating lease, Net | 354 | 285 |
Internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, excluding lessor asset under operating lease, before accumulated depreciation, Cost | 12,787 | 4,523 |
Property, plant, and equipment, excluding lessor asset under operating lease, Accumulated Depreciation | (2,859) | (1,821) |
Property, plant, and equipment, excluding lessor asset under operating lease, Net | 9,928 | 2,702 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, excluding lessor asset under operating lease, before accumulated depreciation, Cost | 1,529 | 1,471 |
Property, plant, and equipment, excluding lessor asset under operating lease, Accumulated Depreciation | (1,396) | (1,222) |
Property, plant, and equipment, excluding lessor asset under operating lease, Net | 133 | 249 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, excluding lessor asset under operating lease, before accumulated depreciation, Cost | 286 | 192 |
Property, plant, and equipment, excluding lessor asset under operating lease, Accumulated Depreciation | (245) | (124) |
Property, plant, and equipment, excluding lessor asset under operating lease, Net | $ 41 | $ 68 |
Minimum | Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 3 years | 3 years |
Minimum | Internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 3 years | 3 years |
Minimum | Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 3 years | 3 years |
Maximum | Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 7 years | 7 years |
Maximum | Internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 5 years | 5 years |
Maximum | Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 7 years | 7 years |
PROPERTY AND EQUIPMENT, NET - A
PROPERTY AND EQUIPMENT, NET - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Cost of sales | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 1 | $ 1.4 | $ 2.7 |
Operating expenses | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 1.1 | $ 1 | $ 1.2 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Summary of Amortizable Intangible Asset (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Aug. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, Gross | $ 32,863 | $ 31,628 | |
Amortizable intangible assets, Accumulated Amortization | (14,916) | (11,636) | |
Amortizable intangible assets, Net | 17,947 | 19,992 | |
Goodwill, Gross | 66,656 | 63,945 | |
Goodwill, Net | 66,656 | 63,945 | $ 2,700 |
Brand and tradenames | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, Gross | 1,705 | 1,640 | |
Amortizable intangible assets, Accumulated Amortization | (1,133) | (840) | |
Amortizable intangible assets, Net | $ 572 | $ 800 | |
Brand and tradenames | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 1 year | 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] | |||
Amortizable intangible assets, Gross | $ 11,819 | $ 10,939 | |
Amortizable intangible assets, Accumulated Amortization | (8,761) | (6,890) | |
Amortizable intangible assets, Net | $ 3,058 | $ 4,049 | |
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] | |||
Amortizable intangible assets, Gross | $ 19,339 | $ 19,049 | |
Amortizable intangible assets, Accumulated Amortization | (5,022) | (3,906) | |
Amortizable intangible assets, Net | $ 14,317 | $ 15,143 | |
Customer relationships | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 5 years | 10 years | |
Customer relationships | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 18 years | 18 years |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense of acquired intangible assets | $ 3.3 | $ 3.1 | $ 3.1 |
Weighted average useful life | 10 years 6 months | ||
Brand and tradenames | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 2 years 3 months 18 days | ||
Developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 2 years | ||
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 13 years |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Summary of Estimated Annual Amortization Expense For Amortizable Intangible Asset (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 3,270 | |
2024 | 2,151 | |
2025 | 1,389 | |
2026 | 1,292 | |
2027 | 1,069 | |
Thereafter | 8,776 | |
Amortizable intangible assets, Net | $ 17,947 | $ 19,992 |
ACCRUED EXPENSES - Information
ACCRUED EXPENSES - Information Regarding Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Accrued Liabilities [Abstract] | ||
Accrued sales tax | $ 14,694 | $ 17,099 |
Accrued compensation and related sales commissions | 3,289 | 4,233 |
Operating lease liabilities - current | 1,538 | 1,166 |
Accrued professional fees | 4,200 | 1,739 |
Contingent consideration arrangement for Yoke Acquisition | 1,000 | 0 |
Accrued other taxes and filing fees | 2,036 | 1,450 |
Accrued other | 1,397 | 773 |
Total accrued expenses | $ 28,154 | $ 26,460 |
DEBT AND OTHER FINANCING ARRA_3
DEBT AND OTHER FINANCING ARRANGEMENTS - Debt and Other Financing Agreements (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Debt Instrument [Line Items] | ||
Long term debt | $ 14,883 | |
Less: unamortized issuance costs and debt discount | (261) | $ (231) |
Long-term debt | 14,622 | 14,319 |
Less: debt and other financing arrangements, current | (692) | (675) |
Debt and other financing arrangements, noncurrent | 13,930 | 13,644 |
Line of Credit | JPMorgan Credit Facility* | ||
Debt Instrument [Line Items] | ||
Long term debt | 14,813 | 14,437 |
Other obligations | ||
Debt Instrument [Line Items] | ||
Long term debt | $ 70 | $ 113 |
DEBT AND OTHER FINANCING ARRA_4
DEBT AND OTHER FINANCING ARRANGEMENTS - Interest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Debt Instrument [Line Items] | |||
Other interest expense | $ 6 | $ 10 | $ 358 |
Total interest expense | 524 | 4,013 | 2,597 |
Line of Credit | |||
Debt Instrument [Line Items] | |||
Interest expense related to change in sales tax reserve | (386) | 218 | 558 |
Line of Credit | 2020 Antara Term Facility | Term Facility | |||
Debt Instrument [Line Items] | |||
Interest expense | 0 | 2,779 | 1,218 |
Line of Credit | 2021 JPMorgan Credit Facility | |||
Debt Instrument [Line Items] | |||
Interest expense | 904 | 1,006 | 0 |
Line of Credit | 2018 JPMorgan Revolving Credit Facility | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Interest expense | 0 | 0 | 303 |
Line of Credit | 2018 JPMorgan Term Loan | Term Facility | |||
Debt Instrument [Line Items] | |||
Interest expense | $ 0 | $ 0 | $ 160 |
DEBT AND OTHER FINANCING ARRA_5
DEBT AND OTHER FINANCING ARRANGEMENTS - JP Morgan Chase Bank Credit Agreement (Details) - Line of Credit | Mar. 17, 2022 USD ($) | Aug. 14, 2020 USD ($) | Jun. 30, 2022 USD ($) |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Capitalized issuance costs | $ 300,000 | ||
2020 Antara Term Facility | Term Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 30,000,000 | ||
JPMorgan Credit Facility* | |||
Debt Instrument [Line Items] | |||
Term | 4 years | ||
Commitment fee | 0.50% | ||
Total leverage ratio maximum | 3 | ||
JPMorgan Credit Facility* | Period One | |||
Debt Instrument [Line Items] | |||
Interest rate, increase | 0.25% | ||
Adjusted quick ratio, maximum | 3 | ||
JPMorgan Credit Facility* | Period Two | |||
Debt Instrument [Line Items] | |||
Interest rate, increase | 2% | ||
Adjusted quick ratio, maximum | 4 | ||
2021 JPMorgan Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 5,000,000 | ||
Term | 3 years | ||
Interest rate, increase | 2% | ||
Commitment fee | 0.50% | ||
2021 JPMorgan Credit Facility | Period Two | |||
Debt Instrument [Line Items] | |||
Adjusted quick ratio, minimum | 3 | ||
2021 JPMorgan Credit Facility | Period Three | |||
Debt Instrument [Line Items] | |||
Adjusted quick ratio, maximum | 3 | ||
2021 JPMorgan Credit Facility | LIBOR | |||
Debt Instrument [Line Items] | |||
Variable rate | 3.75% | ||
2021 JPMorgan Credit Facility | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 5,000,000 | ||
2021 JPMorgan Secured Term Facility | |||
Debt Instrument [Line Items] | |||
Interest rate. during period | 4.40% | ||
2021 JPMorgan Secured Term Facility | Term Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 25,000,000 | $ 15,000,000 | |
2021 JPMorgan, First Amendment | Period One | |||
Debt Instrument [Line Items] | |||
Adjusted quick ratio, minimum | 2.75 | ||
2022 JPMorgan Revolving Credit Facility | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 15,000,000 | ||
2022 Secured Term Facility | |||
Debt Instrument [Line Items] | |||
Line of credit facility increase | $ 10,000,000 | ||
Minimum | JPMorgan Credit Facility* | Base Rate | Period One | |||
Debt Instrument [Line Items] | |||
Variable rate | 2.50% | ||
Minimum | JPMorgan Credit Facility* | Base Rate | Period Two | |||
Debt Instrument [Line Items] | |||
Variable rate | 2.75% | ||
Minimum | JPMorgan Credit Facility* | SOFR | Period One | |||
Debt Instrument [Line Items] | |||
Variable rate | 3.50% | ||
Minimum | 2021 JPMorgan Credit Facility | LIBOR | |||
Debt Instrument [Line Items] | |||
Variable rate | 2.75% | ||
Minimum | 2021 JPMorgan Credit Facility | Base Rate | |||
Debt Instrument [Line Items] | |||
Variable rate | 3.75% | ||
Maximum | JPMorgan Credit Facility* | Base Rate | Period One | |||
Debt Instrument [Line Items] | |||
Variable rate | 3% | ||
Maximum | JPMorgan Credit Facility* | SOFR | Period One | |||
Debt Instrument [Line Items] | |||
Variable rate | 4% | ||
Maximum | JPMorgan Credit Facility* | SOFR | Period Two | |||
Debt Instrument [Line Items] | |||
Variable rate | 3.75% | ||
Maximum | 2021 JPMorgan Credit Facility | LIBOR | |||
Debt Instrument [Line Items] | |||
Variable rate | 3.75% | ||
Maximum | 2021 JPMorgan Credit Facility | Base Rate | |||
Debt Instrument [Line Items] | |||
Variable rate | 4.75% |
DEBT AND OTHER FINANCING ARRA_6
DEBT AND OTHER FINANCING ARRANGEMENTS - Term Facility with Antara (Details) - USD ($) | 3 Months Ended | ||||
Oct. 31, 2019 | Oct. 09, 2019 | Jun. 30, 2021 | Jun. 30, 2022 | Aug. 14, 2020 | |
Debt Instrument [Line Items] | |||||
Long term debt | $ 14,883,000 | ||||
Line of Credit | 2020 Antara Term Facility | Term Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 30,000,000 | ||||
First draw | $ 15,000,000 | ||||
Second draw | $ 15,000,000 | ||||
Interest rate. during period | 9.75% | ||||
Repayment of line of credit | $ 10,100,000 | ||||
Prepayment premium percent | 5% | ||||
Debt issuance costs | 900,000 | ||||
Commitment fee | 100,000 | $ 1,200,000 | |||
Amortization of debt issuance costs and discounts | $ 2,100,000 | ||||
Line of Credit | 2020 Antara Term Facility | Term Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 30,000,000 | ||||
Long term debt | $ 0 |
DEBT AND OTHER FINANCING ARRA_7
DEBT AND OTHER FINANCING ARRANGEMENTS - Other Long-Term Borrowings (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 08, 2021 | Jun. 30, 2020 |
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 14,622 | $ 14,319 | ||
CARES Act, Paycheck Protection Program | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 3,100 | $ 3,100 |
DEBT AND OTHER FINANCING ARRA_8
DEBT AND OTHER FINANCING ARRANGEMENTS - Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Debt Disclosure [Abstract] | ||
2023 | $ 770 | |
2024 | 897 | |
2025 | 1,250 | |
2026 | 11,966 | |
2027 | 0 | |
Principal amounts payable | 14,883 | |
Unamortized issuance costs | (261) | $ (231) |
Total | $ 14,622 | $ 14,319 |
EQUITY - Private Placements (De
EQUITY - Private Placements (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Mar. 04, 2021 | Feb. 24, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Subsidiary, Sale of Stock [Line Items] | |||||
Issuance costs | $ 0 | $ 2,618 | $ 0 | ||
Private Placement | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Shares sold (in shares) | 5,730 | ||||
Aggregate gross proceeds | $ 55,000 | ||||
Sale of Stock, Price Per Share | $ 9.60 | ||||
Issuance costs | $ 2,600 | ||||
Private Placement | Hudson Executive Capital LP | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Shares sold (in shares) | 975 |
EQUITY - Warrants (Details)
EQUITY - Warrants (Details) - $ / shares | 12 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2022 | |
Equity [Abstract] | ||
Warrants exercisable (in shares) | 23,978 | |
Warrants outstanding (in shares) | 0 | 0 |
Exercise price of warrants (in USD per share) | $ 5 | |
Exercise of warrants (in shares) | 12,154 |
INCOME TAXES - Summary of Benef
INCOME TAXES - Summary of Benefit (Provision) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Current: | |||
Federal | $ 0 | $ 0 | $ 126 |
State | (179) | (328) | (57) |
Total current | (179) | (328) | 69 |
Deferred: | |||
Federal | (18) | (12) | (156) |
State | 11 | (30) | 86 |
Total deferred | (7) | (42) | (70) |
Total income tax provision | $ (186) | $ (370) | $ (1) |
INCOME TAXES - Summary of Recon
INCOME TAXES - Summary of Reconciliation of the Benefit (Provision) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||
Indicated benefit at federal statutory rate | $ 319 | $ 1,648 | $ 8,514 |
Stock compensation | (184) | 168 | (226) |
Other permanent differences | (106) | 608 | (106) |
State income taxes, net of federal benefit | (275) | 116 | 1,393 |
Changes related to prior years | 0 | 0 | 489 |
Changes in valuation allowances | 184 | (2,927) | (10,139) |
Other | (124) | 17 | 74 |
Total income tax provision | $ (186) | $ (370) | $ (1) |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 |
Income Tax Disclosure [Abstract] | ||||
Federal operating loss carryforwards | $ 190,000 | $ 187,000 | ||
State operating loss carryforwards | 222,000 | 221,000 | ||
Unrecognized tax benefits | $ 572 | $ 444 | $ 207 | $ 210 |
INCOME TAXES - Summary of Net D
INCOME TAXES - Summary of Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Jun. 30, 2021 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 47,984 | $ 46,851 |
Asset reserves | 6,666 | 7,231 |
Deferred research and development | 1,503 | 1,420 |
Stock-based compensation | 3,416 | 2,620 |
Other | (143) | 2,135 |
Deferred tax assets, gross | 59,426 | 60,257 |
Deferred tax liabilities: | ||
Intangibles | (4,316) | (4,956) |
Deferred tax assets, net | 55,110 | 55,301 |
Valuation allowance | (55,296) | (55,480) |
Deferred tax liabilities | $ (186) | $ (179) |
INCOME TAXES INCOME TAXES - Unr
INCOME TAXES INCOME TAXES - Unrecognized Tax Benefit Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Unrecognized Income Tax Benefits [Roll Forward] | |||
Balance at the beginning of the year | $ 444 | $ 207 | $ 210 |
Gross increases and decreases related to current period tax positions | 0 | 0 | 0 |
Gross increases related to prior period tax positions | 128 | 237 | |
Gross decreases related to prior period tax positions | (3) | ||
Balance at the end of the year | $ 572 | $ 444 | $ 207 |
STOCK BASED COMPENSATION PLAN_2
STOCK BASED COMPENSATION PLANS - Summary of Stock Based Compensation Plans (Details) | 12 Months Ended |
Jun. 30, 2022 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized (in shares) | 6,500,000 |
Conversions of Preferred Stock and cumulative Preferred Stock dividends (in shares) | 106,141 |
Issuance under Stock/Equity Incentive Plan (in shares) | 1,933,830 |
2014 Stock Option Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Issuance under Stock/Equity Incentive Plan (in shares) | 115,687 |
2015 Equity Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Issuance under Stock/Equity Incentive Plan (in shares) | 392,159 |
2018 Equity Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Issuance under Stock/Equity Incentive Plan (in shares) | 179,843 |
June 2013 | 2013 Stock Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized (in shares) | 500,000 |
June 2014 | 2014 Stock Option Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized (in shares) | 750,000 |
June 2015 | 2015 Equity Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized (in shares) | 1,250,000 |
April 2018 | 2018 Equity Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized (in shares) | 4,000,000 |
Current CEO | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Issuance of shares (in shares) | 1,000,000 |
Former CEO | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Issuance of shares (in shares) | 140,000 |
STOCK BASED COMPENSATION PLAN_3
STOCK BASED COMPENSATION PLANS - Additional Information (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 2 Months Ended | 12 Months Ended | |||
Jan. 27, 2021 $ / shares | Mar. 31, 2021 shares | Sep. 30, 2021 shares | Jun. 30, 2022 USD ($) plan $ / shares | Jun. 30, 2021 USD ($) $ / shares | Jun. 30, 2020 USD ($) $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of active stock based compensation plans | plan | 4 | |||||
Weighted average grant date fair value (in USD per share) | $ / shares | $ 5.12 | $ 4.92 | $ 3.84 | |||
Fair value of stock options vested | $ | $ 3,000 | $ 2,400 | $ 1,700 | |||
Stock-based compensation | $ | 6,248 | 9,075 | 3,029 | |||
Stock-based compensation expense, tax benefits recognized | $ | $ 600 | 2,400 | $ 500 | |||
Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation vesting period | 3 years | |||||
Share-based compensation termination period | 7 years | |||||
Performance Based Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Consecutive trading days | 30 days | |||||
Performance goals, percentage achieved | 80% | |||||
Performance goals, decrease in performance options percent | 2% | |||||
Stock-based compensation | $ | $ 1,000 | 2,100 | ||||
Performance Based Awards | Performance Period, One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Price per share, threshold (in dollars per share) | $ / shares | $ 10.50 | |||||
Performance Based Awards | Performance Period, Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Price per share, threshold (in dollars per share) | $ / shares | 13.50 | |||||
Performance Based Awards | Performance Period, Four | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Price per share, threshold (in dollars per share) | $ / shares | 19.50 | |||||
Performance Based Awards | Performance Period, Three | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Price per share, threshold (in dollars per share) | $ / shares | $ 16.50 | |||||
RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation | $ | $ 200 | $ 800 | ||||
Issuance of common stock to Hudson Executive Capital LP (in shares) | shares | 80,000 | |||||
RSUs | Employees Of Related Party Member | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Issuance of common stock to Hudson Executive Capital LP (in shares) | shares | 20,000 | |||||
Long-term Stock Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation vesting period | 3 years | |||||
Minimum | Performance Based Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation vesting period | 3 years | |||||
Minimum | RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation vesting period | 1 year | |||||
Maximum | Performance Based Awards | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation vesting period | 4 years | |||||
Maximum | RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation vesting period | 3 years |
STOCK BASED COMPENSATION PLAN_4
STOCK BASED COMPENSATION PLANS - Summary of Valuation Assumption (Details) - Stock options | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility, minimum | 73.20% | 74.30% | 74.60% |
Expected volatility, maximum | 74.60% | 77.30% | 90.10% |
Expected dividends | 0% | 0% | 0% |
Risk-free interest rate, minimum | 1% | 0.20% | 0.30% |
Risk-free interest rate, maximum | 2.90% | 0.70% | 1.60% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life | 4 years 6 months | 3 years 6 months | |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life | 4 years 7 months 6 days | 4 years 6 months | 4 years 9 months 18 days |
STOCK BASED COMPENSATION PLAN_5
STOCK BASED COMPENSATION PLANS - Summary of Options Outstanding (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | |
Number of Options | ||||
Outstanding options, beginning of period (in shares) | 2,952,092 | 2,437,425 | 1,127,098 | |
Granted (in shares) | 904,500 | 755,000 | 2,075,760 | |
Exercised (in shares) | (121,248) | (74,667) | (440,435) | |
Forfeited (in shares) | (205,511) | (165,666) | (324,998) | |
Expired (in shares) | 0 | 0 | 0 | |
Outstanding options, end of period (in shares) | 3,529,833 | 2,952,092 | 2,437,425 | 1,127,098 |
Exercisable options, end of period (in shares) | 1,538,302 | 1,040,131 | 560,871 | |
Weighted Average Exercise Price | ||||
Outstanding options, beginning of period (in USD per share) | $ 6.97 | $ 6.43 | $ 4.84 | |
Granted (in USD per share) | 8.86 | 8.40 | 6.47 | |
Exercised (in USD per share) | 6.30 | 3.81 | 2.48 | |
Forfeited (in USD per share) | 8.09 | 6.90 | 6.55 | |
Expired (in USD per share) | 0 | 0 | 0 | |
Outstanding options, end of period (in USD per share) | 7.41 | 6.97 | 6.43 | $ 4.84 |
Exercisable options, end of period (in USD per share) | $ 6.79 | $ 6.52 | $ 6.01 | |
Weighted Average Remaining Contractual Term | ||||
Outstanding options | 4 years 6 months | 5 years 7 months 6 days | 6 years 2 months 12 days | 4 years 3 months 18 days |
Exercisable options, end of period | 4 years 6 months | 5 years 1 month 6 days | 4 years 9 months 18 days | |
Aggregate Intrinsic Value | ||||
Outstanding options, beginning balance | $ 14,419 | $ 1,411 | $ 2,917 | |
Exercised | (53) | (601) | (595) | |
Outstanding options, ending balance | 194 | 14,419 | 1,411 | $ 2,917 |
Exercisable options, end of period | $ 183 | $ 5,558 | $ 559 |
STOCK BASED COMPENSATION PLAN_6
STOCK BASED COMPENSATION PLANS - Company Nonvested Common Shares (Details) - $ / shares | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Shares | |||
Nonvested beginning balance (in shares) | 137,846 | 213,014 | 38,971 |
Granted (in shares) | 507,729 | 187,848 | 651,715 |
Vested (in shares) | (101,515) | (248,016) | (109,050) |
Forfeited (in shares) | (95,152) | (15,000) | (368,622) |
Nonvested ending balance (in shares) | 448,908 | 137,846 | 213,014 |
Weighted-Average Grant-Date Fair Value | |||
Nonvested beginning balance (in USD per share) | $ 9.57 | $ 6.50 | $ 9.19 |
Granted (in USD per share) | 7.33 | 10.33 | 7.28 |
Vested (in USD per share) | 10.34 | 7.71 | 7.52 |
Forfeited (in USD per share) | 8.89 | 6.28 | 7.89 |
Nonvested ending balance (in USD per share) | $ 7 | $ 9.57 | $ 6.50 |
STOCK BASED COMPENSATION PLAN_7
STOCK BASED COMPENSATION PLANS - Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 6,248 | $ 9,075 | $ 3,029 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 4,424 | 7,806 | 2,181 |
Performance Based Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 1,824 | $ 1,269 | $ 848 |
STOCK BASED COMPENSATION PLAN_8
STOCK BASED COMPENSATION PLANS - Unrecognized Stock-based Compensation Expense (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2022 USD ($) | |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized expense | $ 4,223 |
Weighted average recognition period | 2 years 4 months 24 days |
Performance Based Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized expense | $ 2,131 |
Weighted average recognition period | 1 year 6 months |
PREFERRED STOCK - Additional In
PREFERRED STOCK - Additional Information (Details) | 12 Months Ended |
Jun. 30, 2022 $ / shares | |
Class of Stock [Line Items] | |
Liquidation price to be received by series A preferred stock holder for each outstanding share plus all cumulative unpaid dividends (in USD per share) | $ 10 |
Series A Convertible Preferred Stock | |
Class of Stock [Line Items] | |
Preferred stock, voting percentage | 0.1988 |
Series A preferred stock annual cumulative dividend price per share (in USD per share) | $ 1.50 |
Series A preferred stock, redemption price per share (in USD per share) | 11 |
Series A Convertible Preferred Stock | Common Stock | |
Class of Stock [Line Items] | |
Cumulative unpaid dividends converted into common shares (in USD per share) | $ 1,000 |
PREFERRED STOCK - Preferred Sto
PREFERRED STOCK - Preferred Stock Liquidation Preference (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Class of Stock [Line Items] | ||
Liquidation price (in USD per share) | $ 10 | |
Series A Convertible Preferred Stock | ||
Class of Stock [Line Items] | ||
For shares outstanding at $10.00 per share | $ 4,451 | $ 4,451 |
Cumulative unpaid dividends | 17,662 | 16,996 |
Preferred stock liquidation preference | $ 22,113 | $ 21,447 |
RETIREMENT PLAN (Details)
RETIREMENT PLAN (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |||
Maximum percent of voluntary contribution | 100% | ||
Defined Contribution Plan Employer Matching Contribution Percent First Slab | 100% | 100% | 100% |
Percentage Of Eligible Compensation Contributed By Employees First Slab | 3% | 3% | 3% |
Percentage of safe harbor matching contributions for next 2% employee compensation | 50% | 50% | 50% |
Percentage of employee compensation eligible for 50% of next safe harbor matching contributions | 2% | 2% | 2% |
Company's safe harbor contribution | $ 0.7 | $ 0.2 | $ 0.5 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2022 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase Obligation | $ 21.4 |
Purchase obligation, term | 2 years |
Related Party Disclosures (Deta
Related Party Disclosures (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Related Party Transactions [Abstract] | ||
Cost of subscription and transaction fees | $ 1.1 | $ 0 |