Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Sep. 15, 2023 | Dec. 31, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jun. 30, 2023 | ||
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 | $ 256.1 | ||
Entity Common Stock, Shares Outstanding | 72,695,265 | ||
Documents Incorporated by Reference | Selected portions of the registrant’s definitive proxy statement on Schedule 14A for the registrant’s 2024 annual meeting of stockholders, which will be filed with the Securities and Exchange Commission within 120 days of June 30, 2023, are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Entity Central Index Key | 0000896429 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Jun. 30, 2023 | |
Audit Information [Abstract] | |
Auditor Name | BDO USA, P.C. |
Auditor Location | Richmond, VA |
Auditor Firm ID | 243 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 50,927 | $ 68,125 |
Accounts receivable, net | 30,162 | 37,695 |
Finance receivables, net | 6,668 | 6,721 |
Inventory, net | 31,872 | 19,754 |
Prepaid expenses and other current assets | 3,754 | 4,285 |
Total current assets | 123,383 | 136,580 |
Non-current assets: | ||
Finance receivables due after one year, net | 13,307 | 14,727 |
Property and equipment, net | 25,281 | 12,784 |
Operating lease right-of-use assets | 2,575 | 2,370 |
Intangibles, net | 27,812 | 17,947 |
Goodwill | 92,005 | 66,656 |
Other assets | 5,249 | 4,568 |
Total non-current assets | 166,229 | 119,052 |
Total assets | 289,612 | 255,632 |
Current liabilities: | ||
Accounts payable | 52,869 | 48,440 |
Accrued expenses | 26,276 | 28,154 |
Current obligations under long-term debt | 882 | 692 |
Deferred revenue | 1,666 | 1,893 |
Total current liabilities | 81,693 | 79,179 |
Long-term liabilities: | ||
Deferred income taxes | 275 | 186 |
Long-term debt, less current portion | 37,548 | 13,930 |
Operating lease liabilities, non-current | 2,504 | 2,366 |
Total long-term liabilities | 40,327 | 16,482 |
Total liabilities | 122,020 | 95,661 |
Commitments and contingencies (Note 18) | 0 | 0 |
Series A convertible preferred stock, 900,000 shares authorized, 385,782 and 445,063 issued and outstanding, with liquidation preferences of $22,144 and $22,115 at June 30, 2023 and 2022, respectively | 2,720 | 3,138 |
Shareholders’ equity: | ||
Common stock, no par value, 640,000,000 shares authorized, 72,664,464 and 71,188,053 shares issued and outstanding at June 30, 2023 and 2022, respectively | 477,324 | 469,918 |
Accumulated deficit | (312,452) | (313,085) |
Total shareholders’ equity | 164,872 | 156,833 |
Total liabilities, convertible preferred stock, and shareholders’ equity | $ 289,612 | $ 255,632 |
Convertible preferred stock, shares outstanding (in shares) | 385,782 | 445,063 |
Convertible preferred stock, shares issued (in shares) | 385,782 | 445,063 |
Common stock, shares issued | 72,664,464 | 71,188,053 |
Common stock, shares outstanding | 72,664,464 | 71,188,053 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Convertible preferred stock, shares authorized (in shares) | 900,000 | 900,000 |
Convertible preferred stock, shares issued (in shares) | 385,782 | 445,063 |
Convertible preferred stock, shares outstanding (in shares) | 385,782 | 445,063 |
Convertible preferred stock, liquidation preference value | $ 22,144 | $ 22,115 |
Common stock, shares authorized (in shares) | 640,000,000 | 640,000,000 |
Common stock, shares issued (in shares) | 72,664,464 | 71,188,053 |
Common stock, shares outstanding (in shares) | 72,664,464 | 71,188,053 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue | $ 243,641 | $ 205,202 | $ 166,939 |
Costs of sales | 162,405 | 141,007 | 112,913 |
Gross profit | 81,236 | 64,195 | 54,026 |
Operating expenses: | |||
Sales and marketing | 12,427 | 8,908 | 6,935 |
Technology and product development | 20,726 | 21,877 | 15,935 |
General and administrative | 36,926 | 30,519 | 35,754 |
Investigation, proxy solicitation and restatement expenses, net of insurance recoveries | (362) | 1,196 | 0 |
Integration and acquisition expenses | 3,141 | 0 | 0 |
Depreciation and amortization | 7,618 | 4,352 | 4,107 |
Total operating expenses | 80,476 | 66,852 | 62,731 |
Operating income (loss) | 760 | (2,657) | (8,705) |
Other income (expense): | |||
Interest income | 2,515 | 1,884 | 1,159 |
Interest expense | (2,326) | (524) | (4,013) |
Other income (expense) | (135) | (220) | 3,224 |
Total other income, net | 54 | 1,140 | 370 |
Income (loss) before income taxes | 814 | (1,517) | (8,335) |
Provision for income taxes | (181) | (186) | (370) |
Net income (loss) | 633 | (1,703) | (8,705) |
Preferred dividends | (623) | (668) | (668) |
Net income (loss) applicable to common shares | $ 10 | $ (2,371) | $ (9,373) |
Net earnings (loss) per common share | |||
Basic (in USD per share) | $ 0 | $ (0.03) | $ (0.14) |
Diluted (in USD per share) | $ 0 | $ (0.03) | $ (0.14) |
Weighted average number of common shares outstanding used to compute net earnings (loss) per share applicable to common shares | |||
Basic (in shares) | 71,978,901 | 71,091,790 | 67,002,438 |
Diluted (in shares) | 72,514,634 | 71,091,790 | 67,002,438 |
Subscription and transaction fees | |||
Revenue | $ 200,223 | $ 168,850 | $ 139,242 |
Costs of sales | 119,715 | 103,392 | 83,617 |
Equipment sales | |||
Revenue | 43,418 | 36,352 | 27,697 |
Costs of sales | $ 42,690 | $ 37,615 | $ 29,296 |
Consolidated Statements of Conv
Consolidated Statements of Convertible Preferred Stock and Shareholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Accumulated Deficit | Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment |
Convertible Preferred Stock, beginning balance (in shares) at Jun. 30, 2020 | 445,063 | ||||
Convertible Preferred Stock, beginning balance at Jun. 30, 2020 | $ 3,138 | ||||
Convertible Preferred Stock, ending balance (in shares) at Jun. 30, 2021 | 445,063 | ||||
Convertible Preferred Stock, ending balance at Jun. 30, 2021 | $ 3,138 | ||||
Beginning balance (in shares) at Jun. 30, 2020 | 65,196,882 | ||||
Beginning 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 (net) (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 | ||||
Common stock issued for acquisition | 0 | ||||
Net income (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) | ||
Convertible Preferred Stock, ending balance (in shares) at Jun. 30, 2022 | 445,063 | ||||
Convertible Preferred Stock, ending balance at Jun. 30, 2022 | $ 3,138 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock based compensation and exercises (net) (in shares) | 249,829 | ||||
Stock-based compensation and exercises (net) | 7,143 | $ 7,143 | |||
Retirement of stock (in shares) | (319,823) | ||||
Common stock issued for acquisition | 0 | ||||
Net income (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) | ||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||
Repurchase of Series A convertible preferred stock (in shares) | (59,281) | ||||
Repurchase of Series A convertible preferred stock | $ (418) | ||||
Convertible Preferred Stock, ending balance (in shares) at Jun. 30, 2023 | 385,782 | ||||
Convertible Preferred Stock, ending balance at Jun. 30, 2023 | $ 2,720 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock based compensation and exercises (net) (in shares) | 235,491 | ||||
Stock-based compensation and exercises (net) | 4,633 | $ 4,633 | |||
Repurchase of Series A convertible preferred stock | (1,733) | $ (1,733) | |||
Common stock issued for acquisition (in shares) | 1,240,920 | ||||
Common stock issued for acquisition | 4,506 | $ 4,506 | |||
Net income (loss) | 633 | 633 | |||
Ending balance (in shares) at Jun. 30, 2023 | 72,664,464 | ||||
Ending balance at Jun. 30, 2023 | $ 164,872 | $ 477,324 | $ (312,452) |
Consolidated Statements of Co_2
Consolidated Statements of Convertible Preferred Stock and Shareholders' Equity (Parenthetical) $ in Thousands | 12 Months Ended |
Jun. 30, 2021 USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Offering costs incurred | $ 2,618 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 633 | $ (1,703) | $ (8,705) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Stock-based compensation | 4,737 | 6,248 | 9,075 |
Amortization of debt issuance costs and discounts | 128 | 148 | 2,735 |
Provision for expected losses | 5,815 | 3,471 | 1,236 |
Provision for inventory reserve | 280 | (397) | 693 |
Depreciation and amortization included in operating expenses | 7,618 | 4,352 | 4,107 |
Depreciation included in cost of subscription and transaction fees for rental equipment | 1,189 | 973 | 1,405 |
Property and equipment write-off | 364 | 0 | 1,658 |
Gain on extinguishment of debt | 0 | 0 | (3,065) |
Operating lease right-of-use asset impairment | 0 | 0 | 1,578 |
Other | (116) | 686 | 1,104 |
Changes in operating assets and liabilities: | |||
Accounts receivable | 4,960 | (13,649) | (10,126) |
Finance receivables | (32) | (1,884) | (1,877) |
Inventory | (10,387) | (14,064) | 3,142 |
Prepaid expenses and other assets | (180) | (4,262) | (847) |
Accounts payable and accrued expenses | (458) | 12,153 | 7,013 |
Operating lease liabilities | (133) | (907) | (1,014) |
Deferred revenue | (226) | 130 | 65 |
Net cash provided by (used in) operating activities | 14,192 | (8,705) | 8,177 |
Cash flows from investing activities: | |||
Capital expenditures | (16,151) | (9,260) | (1,838) |
Acquisition of business, net of cash acquired | (35,714) | (2,966) | 0 |
Proceeds from sale of property and equipment | 0 | 0 | 10 |
Net cash used in investing activities | (51,865) | (12,226) | (1,828) |
Cash flows from financing activities: | |||
Proceeds from long-term debt | 25,000 | 738 | 14,550 |
Repayment of long-term debt | (1,270) | (606) | (15,744) |
Proceeds from private placement | 0 | 0 | 55,008 |
Payment of equity issuance costs | 0 | 0 | (2,618) |
Payment of Antara prepayment penalty and commitment termination fee | 0 | 0 | (1,200) |
Contingent consideration paid for acquisition | (1,000) | 0 | 0 |
Repurchase of Series A Convertible Preferred Stock | (2,151) | 0 | 0 |
Payment of employee taxes related to stock-based compensation | (104) | 0 | 0 |
Proceeds from exercise of common stock options | 0 | 895 | 78 |
Payment of third-party debt issuance costs | 0 | (107) | 0 |
Net cash provided by financing activities | 20,475 | 920 | 50,074 |
Net (decrease) increase in cash and cash equivalents | (17,198) | (20,011) | 56,423 |
Cash and cash equivalents at beginning of year | 68,125 | 88,136 | 31,713 |
Cash and cash equivalents at end of year | 50,927 | 68,125 | 88,136 |
Supplemental disclosures of cash flow information: | |||
Interest paid in cash | 2,641 | 755 | 1,055 |
Income taxes paid in cash | 61 | 94 | 81 |
Common stock issued for acquisition | $ 4,506 | $ 0 | $ 0 |
BUSINESS
BUSINESS | 12 Months Ended |
Jun. 30, 2023 | |
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 self-service commerce. We offer 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. Our customers range from vending machine companies to operators of micro-markets and smart retail, laundromats, metered parking terminals, amusement and entertainment venues, IoT services and more . COVID-19 Update While there has not been any resurgence of the COVID-19 virus or new strains or variants emerge that significantly impacted the Company, its employees, or its customers, we have experienced lingering effects during fiscal year 2023. We underwent elevated component and supply chain costs necessary for the production and distribution of our hardware products. Additionally, schools and other organizations have re-opened which has led to increased foot-traffic to distributed assets containing our electronic payment solutions, but we have not seen a full return to the office. Many companies have implemented a hybrid approach requiring employees to work in the office several days a week and allow work from home for the remaining days. 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. We will continue to monitor the situation and follow any guidance from federal, state, and local public health authorities. Given the potential uncertainty of the situation, the Company cannot reasonably estimate the longer-term repercussions of COVID-19 on our financial condition, result of operations or cash flows. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ACCOUNTING POLICIES BASIS OF PRESENTATION AND PREPARATION 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. The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") on a going concern basis. 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. In connection with the Company's acquisition of Three Square Market, Inc., a Wisconsin corporation, and Three Square Market Limited, a UK private limited company (collectively "32M"), we assessed the foreign exchange impact associated with 32M's UK operations which utilizes the British Pound as its functional currency, and concluded the foreign currency fluctuations were immaterial to our financial statements including Consolidated Balance Sheets, Consolidated Statements of Operations, Consolidated Statements of Convertible Preferred Stock and Shareholders’ Equity, and Consolidated Statement of Cash Flows. The Company will continue to monitor and assess its exposures to foreign exchange fluctuations in future periods. 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. In fiscal year 2023, the Company disaggregated General and administrative costs further by disclosing Integration and acquisition expenses separately. 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 2022 and 2021 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. 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 that are not eligible for capitalization. • 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. • Investigation, proxy solicitation, and restatement expenses: In fiscal year 2019, the Audit Committee, with the assistance of independent legal and forensic accounting advisors, conducted an internal investigation of then-current and prior period matters relating to certain of the Company’s contractual arrangements, including the accounting treatment, financial reporting and internal controls related to such arrangements (the “2019 Investigation”). The Company and former officers incurred additional legal expenses primarily relating to responding to inquiries from the Securities and Exchange Commission (“SEC”) in regards to the 2019 Investigation. • Integration and acquisition expenses: Integration and acquisition expenses consist primarily of professional services fees including accounting, legal and investing banking advisory fees incurred in connection with acquisitions and post-acquisition integrations. See Note 6 - Acquisitions to the consolidated financial statements for further information. • Depreciation and amortization: Depreciation expense on our property and equipment, excluding property and equipment used for rentals, amortization of capitalized internal-use software development costs, 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, fair value of acquired assets and liabilities including goodwill through purchase accounting, evaluation of goodwill and long-lived assets impairment, allowances for accounts and finance receivables, inventory reserves, loss contingencies, income taxes, and sales tax reserves. 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. and U.K. ACCOUNTS RECEIVABLE Accounts receivable include amounts due to the Company for sales of equipment, other amounts due from customers, merchant service receivables which are receivables due from credit card processors, and unbilled amounts due from customers, net of the allowance for uncollectible accounts. See "Allowance for Accounts and Finance Receivables" section below for details. FINANCE RECEIVABLES The Company offers extended payment terms to certain customers for equipment sales primarily 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 term. The Company recognizes a portion of the lease payments as interest income in the accompanying consolidated financial statements based on the effective interest rate method. ALLOWANCE FOR ACCOUNTS AND FINANCE RECEIVABLES The Company maintains lifetime expected loss allowances for accounts and finance receivables based on 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 less than one year for accounts receivable and five years for finance receivables. Historical loss experience is utilized as there have been no significant changes in the mix or risk characteristics of the receivable revenue streams used to calculate historical loss rates. Current conditions are analyzed at each measurement date to reassess whether our receivables continue to exhibit similar risk characteristics as the prior measurement date, and determine if the allowance calculation needs to be adjusted for new developments, such as a customer’s inability to meet its financial obligations. Reasonable and supportable macroeconomic trends also are incorporated into the analysis as warranted. Estimating the allowances therefore 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 receivables that we are unable to collect may be different than the amounts initially estimated in the allowances. The provision for expected credit losses relating to accounts receivable and finance receivable balances is recorded within general and administrative expenses in the Consolidated Statements of Operations. The Company writes off accounts and finance receivables balances when management determines the balance is uncollectible and the Company ceases collection efforts. INVENTORY, NET Inventory consists primarily of finished goods. The company's inventories are valued at the lower of cost or net realizable value, using a weighted-average cost method. The Company establishes reserves for slow-moving inventory based upon quality considerations and assumptions about future demand and market conditions. The reserve is recorded within Cost of equipment sales in our Consolidated Statements of Operations. The inventory reserve was $2.3 million and $2.5 million for the years ended June 30, 2023 and 2022, 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. Capitalized internal-use software is amortized on the straight-line basis over the estimated useful lives of the software. 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. 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 Company has selected April 1 as its annual test date. The Company has concluded there has been no impairment of goodwill during the year ended June 30, 2023 based on its qualitative assessment. There has been no impairment of goodwill for fiscal year 2022, or 2021. 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 names, customer relationships, acquired tradenames, acquired developed technology and acquired customer relationships in a 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 Other than goodwill, there were no indefinite-lived intangible assets at June 30, 2023 or 2022. The Company assesses its finite-lived intangible and other long-lived assets for impairment 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 there has been no impairment of intangible and long-lived assets during the years ended June 30, 2023, or 2022. 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. SIGNIFICANT CUSTOMERS Concentration of revenue with customers subject the Company to operating risks. Approximately $28.7 million, $29.7 million, and $27.3 million of the Company’s revenue for the years ended June 30, 2023, 2022 and 2021, respectively, were concentrated with one customer, which represented 12%, 14% and 16% of the Company's revenue for each of the years. The Company’s customers are principally located in the United States. The Company had accounts receivable from and accounts payable to one contract manufacturer. During fiscal year 2023, the Company entered into an Offset and Release of Claims Agreement with this counterparty. As a result, outstanding receivables and payables were offset and the net position was settled through a cash disbursement from the Company. As of June 30, 2023, the Company did not have a net accounts receivable balance from this counterparty. Accounts receivable from this contract manufacturer represented 16% of accounts receivables, net of allowance, as of June 30, 2022. REVENUE RECOGNITION The revenue recognition guidanc e 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 self-service commerce. 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 primary business model is to act as the Merchant of Record for its sellers. We provide cashless 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, 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 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 integrated cashless services 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 payment processing 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 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 payment processing 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. Software services represent a separate performance obligation, which is satisfied when each distinct day, or for practical reasons, each distinct month of service is transferred to the customers. Customers are billed for software services on a monthly basis. Payment is 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 the related liability is 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 when the performance obligation is satisfied. 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 subscription and transaction fees 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 operating 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 |
LEASES
LEASES | 12 Months Ended |
Jun. 30, 2023 | |
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, 2023 As of June 30, 2022 Assets Operating leases Operating lease right-of-use assets $ 2,575 $ 2,370 Liabilities Current Accrued expenses 1,266 1,538 Long-term Operating lease liabilities, non-current 2,504 2,366 Total lease liabilities $ 3,770 $ 3,904 Components of lease cost are as follows: ($ in thousands) Year ended June 30, 2023 Year ended June 30, 2022 Year ended June 30, 2021 Operating lease costs* $ 2,490 $ 1,923 $ 2,079 * Includes short-term lease and variable lease costs of $0.4 million for the year ended June 30, 2023, 2022 and 2021. Supplemental cash flow information and non-cash activity related to our leases are as follows: ($ in thousands) Year ended June 30, 2023 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 $ 2,522 $ 1,737 $ 1,635 Non-cash activity: Right-of-use assets obtained in exchange for lease obligations Operating lease $ 1,607 $ 471 $ — Weighted-average remaining lease term and discount rate for our leases are as follows: Year ended June 30, 2023 Year ended June 30, 2022 Weighted-average remaining lease term (years) Operating leases 3.2 3.4 Weighted-average discount rate Operating leases 7.5 % 6.8 % Maturities of lease liabilities by fiscal year for our leases as of June 30, 2023 are as follows: ($ in thousands) Operating 2024 $ 1,502 2025 1,181 2026 1,102 2027 462 2028 — Total lease payments $ 4,247 Less: Imputed interest (477) Present value of lease liabilities $ 3,770 In connection with the acquisition of 32M, the Company entered into additional operating leases for office space located in River Falls, Wisconsin and Birmingham, UK. These leases commenced on December 31, 2022 with a term of 48-months. In February 2023, the Company extended its existing Atlanta, Georgia office operating lease for an additional 70-months period. The lease extension commenced on July 1, 2023. In May 2023, the Company signed a new lease for its corporate office in Malvern, Pennsylvania. The new lease has a 133-months term and the anticipated lease commencement date is December 1, 2023 upon the expiration of the Company's current office lease. These two leases were not included in the Operating lease right-of-use assets or liabilities on the Consolidated Balance Sheets for as of June 30, 2023. Lessor accounting Property and equipment used for the Company's operating lease rental program consisted of the following: As of June 30, ($ in thousands) 2023 2022 Cost $ 28,398 $ 25,242 Accumulated depreciation (23,221) (22,914) Net $ 5,177 $ 2,328 |
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, 2023 As of June 30, 2022 Assets Operating leases Operating lease right-of-use assets $ 2,575 $ 2,370 Liabilities Current Accrued expenses 1,266 1,538 Long-term Operating lease liabilities, non-current 2,504 2,366 Total lease liabilities $ 3,770 $ 3,904 Components of lease cost are as follows: ($ in thousands) Year ended June 30, 2023 Year ended June 30, 2022 Year ended June 30, 2021 Operating lease costs* $ 2,490 $ 1,923 $ 2,079 * Includes short-term lease and variable lease costs of $0.4 million for the year ended June 30, 2023, 2022 and 2021. Supplemental cash flow information and non-cash activity related to our leases are as follows: ($ in thousands) Year ended June 30, 2023 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 $ 2,522 $ 1,737 $ 1,635 Non-cash activity: Right-of-use assets obtained in exchange for lease obligations Operating lease $ 1,607 $ 471 $ — Weighted-average remaining lease term and discount rate for our leases are as follows: Year ended June 30, 2023 Year ended June 30, 2022 Weighted-average remaining lease term (years) Operating leases 3.2 3.4 Weighted-average discount rate Operating leases 7.5 % 6.8 % Maturities of lease liabilities by fiscal year for our leases as of June 30, 2023 are as follows: ($ in thousands) Operating 2024 $ 1,502 2025 1,181 2026 1,102 2027 462 2028 — Total lease payments $ 4,247 Less: Imputed interest (477) Present value of lease liabilities $ 3,770 In connection with the acquisition of 32M, the Company entered into additional operating leases for office space located in River Falls, Wisconsin and Birmingham, UK. These leases commenced on December 31, 2022 with a term of 48-months. In February 2023, the Company extended its existing Atlanta, Georgia office operating lease for an additional 70-months period. The lease extension commenced on July 1, 2023. In May 2023, the Company signed a new lease for its corporate office in Malvern, Pennsylvania. The new lease has a 133-months term and the anticipated lease commencement date is December 1, 2023 upon the expiration of the Company's current office lease. These two leases were not included in the Operating lease right-of-use assets or liabilities on the Consolidated Balance Sheets for as of June 30, 2023. Lessor accounting Property and equipment used for the Company's operating lease rental program consisted of the following: As of June 30, ($ in thousands) 2023 2022 Cost $ 28,398 $ 25,242 Accumulated depreciation (23,221) (22,914) Net $ 5,177 $ 2,328 |
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, 2023 As of June 30, 2022 Assets Operating leases Operating lease right-of-use assets $ 2,575 $ 2,370 Liabilities Current Accrued expenses 1,266 1,538 Long-term Operating lease liabilities, non-current 2,504 2,366 Total lease liabilities $ 3,770 $ 3,904 Components of lease cost are as follows: ($ in thousands) Year ended June 30, 2023 Year ended June 30, 2022 Year ended June 30, 2021 Operating lease costs* $ 2,490 $ 1,923 $ 2,079 * Includes short-term lease and variable lease costs of $0.4 million for the year ended June 30, 2023, 2022 and 2021. Supplemental cash flow information and non-cash activity related to our leases are as follows: ($ in thousands) Year ended June 30, 2023 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 $ 2,522 $ 1,737 $ 1,635 Non-cash activity: Right-of-use assets obtained in exchange for lease obligations Operating lease $ 1,607 $ 471 $ — Weighted-average remaining lease term and discount rate for our leases are as follows: Year ended June 30, 2023 Year ended June 30, 2022 Weighted-average remaining lease term (years) Operating leases 3.2 3.4 Weighted-average discount rate Operating leases 7.5 % 6.8 % Maturities of lease liabilities by fiscal year for our leases as of June 30, 2023 are as follows: ($ in thousands) Operating 2024 $ 1,502 2025 1,181 2026 1,102 2027 462 2028 — Total lease payments $ 4,247 Less: Imputed interest (477) Present value of lease liabilities $ 3,770 In connection with the acquisition of 32M, the Company entered into additional operating leases for office space located in River Falls, Wisconsin and Birmingham, UK. These leases commenced on December 31, 2022 with a term of 48-months. In February 2023, the Company extended its existing Atlanta, Georgia office operating lease for an additional 70-months period. The lease extension commenced on July 1, 2023. In May 2023, the Company signed a new lease for its corporate office in Malvern, Pennsylvania. The new lease has a 133-months term and the anticipated lease commencement date is December 1, 2023 upon the expiration of the Company's current office lease. These two leases were not included in the Operating lease right-of-use assets or liabilities on the Consolidated Balance Sheets for as of June 30, 2023. Lessor accounting Property and equipment used for the Company's operating lease rental program consisted of the following: As of June 30, ($ in thousands) 2023 2022 Cost $ 28,398 $ 25,242 Accumulated depreciation (23,221) (22,914) Net $ 5,177 $ 2,328 |
REVENUE
REVENUE | 12 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Based on similar operational characteristics, the Company's revenue is disaggregated as follows: Year-ended June 30, ($ in thousands) 2023 2022 2021 Transaction fees $ 132,594 $ 110,695 $ 85,497 Subscription fees 67,629 58,155 53,745 Subscription and transaction fees 200,223 168,850 139,242 Equipment sales 43,418 36,352 27,697 Total revenues $ 243,641 $ 205,202 $ 166,939 Contract Liabilities The Company's contract liability (i.e., deferred revenue) balances are as follows: Year ended June 30, ($ in thousands) 2023 2022 Deferred revenue, beginning of the period $ 1,893 $ 1,763 Deferred revenue, end of the period 1,666 1,893 Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period 576 383 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. 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 are primarily associated with the Company's Cantaloupe ONE rental program which has a contractual term of 36 months. The following table reflects the estimated fees to be recognized in the future related to performance obligations that are unsatisfied as of June 30, 2023: ($ in thousands) As of June 30, 2023 2024 $ 4,860 2025 4,775 Thereafter 2,257 Total $ 11,892 Contract Costs At June 30, 2023, the Company had net capitalized costs to obtain contracts of $0.6 million included in Prepaid expenses and other current assets and $2.8 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, 2023, amortization of capitalized contract costs was $0.8 million. 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 $0.7 million. |
EARNINGS (LOSS) PER SHARE CALCU
EARNINGS (LOSS) PER SHARE CALCULATION | 12 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE CALCULATION | LOSS) PER SHARE CALCULATION The calculation of basic and diluted earnings (loss) per share is presented below: Year ended June 30, ($ in thousands, except share and per share data) 2023 2022 2021 Numerator for basic and diluted earnings (loss) per share Net income (loss) $ 633 $ (1,703) $ (8,705) Preferred dividends (623) (668) (668) Net income (loss) available to common shareholders $ 10 $ (2,371) $ (9,373) Denominator for basic earnings (loss) per share - Weighted average shares outstanding 71,978,901 71,091,790 67,002,438 Effect of dilutive potential common shares 535,733 — — Denominator for diluted earnings (loss) per share - Adjusted weighted average shares outstanding 72,514,634 71,091,790 67,002,438 Basic earnings (loss) per share $ — $ (0.03) $ (0.14) Diluted earnings (loss) per share $ — $ (0.03) $ (0.14) |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONS We completed the following acquisitions in fiscal year 2023 and 2022. Financial results of each transaction are included in our consolidated financial statements from the date of each acquisition. Three Square Market On December 1, 2022, the Company acquired all of the equity interests of Three Square Market, Inc., a Wisconsin corporation, and Three Square Market Limited, a UK private limited company (collectively "32M") pursuant to an Equity Purchase Agreement. 32M is a leading provider of software and self-service kiosk-based point of sale and payment solutions to the micro market industry and the acquisition expanded the Company's presence in that industry. In addition to new technology and services, due to 32M’s existing customer base, the acquisition expands the Company’s footprint into new global markets. The acquisition of 32M was accounted for as a business combination using the acquisition method of accounting. The purchase price of the acquired company was 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. The Company paid an aggregate purchase price consideration of $41.1 million, which consisted of $36.6 million in cash and 1,240,920 shares of the Company's common stock (the "Stock Consideration") with an aggregate fair value of $4.5 million for the acquisition of 32M. The aggregate cash consideration includes $0.5 million of cash paid into an escrow account for net working capital and other post-closing adjustments. The Stock Consideration of 1,240,920 shares ("Escrowed Shares") referred to above were placed into an escrow account to resolve indemnification claims for breach of certain representations and warranties and will be released 50% on the first anniversary of the acquisition date and 50% on the second anniversary of the acquisition date, less any shares that may be returned to Company on account of any indemnity claims. The Escrowed Shares are considered to be issued and outstanding shares of the Company as of the acquisition date. The Company funded the cash consideration of the acquisition by borrowing $25 million of debt from the JPMorgan Credit Facility and the remaining consideration utilizing existing cash on hand. The estimated fair value of the purchase price consideration consisted of the following: ($ in thousands) Closing cash consideration $ 36,605 Stock Consideration 4,506 Fair value of total consideration transferred $ 41,111 The following table summarizes the adjusted fair value assigned to the assets acquired and liabilities assumed as of June 30, 2023. ($ in thousands) Amount Cash and cash equivalents $ 891 Accounts receivable 1,780 Inventories 2,011 Intangible assets 14,904 Other assets 670 Total identifiable assets acquired 20,256 Accounts payable (2,358) Tax liabilities (2,095) Total liabilities assumed (4,453) Total identifiable net assets 15,803 Goodwill 25,308 Fair value of total consideration transferred $ 41,111 The Company determined the fair value of the identifiable intangible assets acquired with the assistance of third-party valuation consultants. Amounts allocated to identifiable intangible assets included $9.0 million related to developed technology, $5.4 million related to customer relationships, and $0.5 million related to tradenames. 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 significant unobservable inputs used in the valuation of the customer relationship asset and acquired developed technology asset are the revenue growth rates used in the development of the projected financial information used as an input to calculate those values and the discount rate applied. Th e recognized intangible assets will be amortized on a straight-line basis over the estimated useful lives of the respective assets. The estimated useful lives for developed technology, customer relationship, trade names were 5, 5 and 3 years, respectively. Goodwill of $25.3 million arising from the acquisition includes the expected synergies between 32M 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. Subsequent to the acquisition closing date and within the one-year measurement period, the Company adjusted the purchase price allocation from what was initially recognized to reflect facts and circumstances in existence as of the acquisition close date. These adjustments included a net increase of $0.3 million to the overall purchase price consideration, a net decrease of $1.1 million in working capital related accounts and a net increase of $1.7 million in intangible assets. Recognized goodwill decreased by $0.3 million as a result of these adjustments. Furthermore, the Company recorded additional amortization expense of $0.2 million associated with the increase in fair value of the recognized intangible assets in its Consolidated Statement of Operations. The Company is substantially complete with the purchase price allocation as of June 30, 2023, except for the finalization of the valuation of the acquired customer relationships and developed technology intangible assets. Additional purchase price adjustments could be recorded during the remaining measurement period if additional facts and circumstances in existence as of the acquisition close date are identified that require adjustment to the value the assets acquired and liabilities assumed. The Company recognized $3.1 million of acquisition related costs that were expensed during the year ended June 30, 2023. These costs were recorded within Integration and acquisition expenses in the Consolidated Statements of Operations. The amount of 32M revenue included in the Company’s Consolidated Statement of Operations from the acquisition date through June 30, 2023 was $13.2 million. The amount of 32M earnings included in the Company’s Consolidated Statement of Operations from the acquisition date through June 30, 2023 was $2.5 million. Unaudited supplemental disclosure of pro forma information The following table presents unaudited pro forma information as if the acquisition of 32M had occurred on July 1, 2021. The unaudited pro forma information presented combines the historical condensed consolidated results of operations of the Company and 32M after giving effect to the preliminary purchase accounting impact of the 32M acquisition related costs (including, but not limited to, amortization associated with the acquired intangible assets, interest expense associated with the Credit Facility to finance a portion of the purchase price, acquisition related costs) and the alignment of accounting policies. This supplemental unaudited pro forma information has been prepared for comparative purposes and does not purport to be indicative of what would have occurred had the acquisition been made on July 1, 2021, nor are they indicative of any future results. Furthermore, cost savings and other business synergies related to the acquisition are not reflected in the pro forma amounts. Year ended June 30, (In thousands) 2023 2022 Revenues $ 251,979 $ 222,185 Net loss (75) (7,117) The unaudited supplemental pro forma financial information for the year ended June 30, 2023 was adjusted to exclude $3.1 million of acquisition related costs, the components of which were previously described. The unaudited supplemental pro forma financial information for the year ended June 30, 2022 was adjusted to include the $3.1 million of acquisition related costs. Yoke Payments 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 extended its offering to provide self-checkout while seamlessly integrating with Cantaloupe’s inventory management and payment processing platforms. 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. On July 27, 2022, the Company made the cash payment of $1 million in accordance with the agreement consideration. Additionally in connection with the acquisition, the Company will issue common stock to the former owners of Yoke based on the achievement of certain sales growth targets for software licenses through July 31, 2024 and continued employment as of the respective measurement dates. The accounting treatment for these awards in the context of the business combination is to recognize the awards as a post-combination expense and were not included in the purchase price. We will begin recognizing compensation expense for these awards over the requisite service period when it becomes probable that the performance condition would be satisfied. At each reporting date, we assess the probability of achieving the sales targets and fulfilling the performance condition. For the year ended June 30, 2023, we determined that it is not probable that the performance condition would be satisfied and, accordingly, have not recognized compensation expense related to these awards. The following table summarizes the total consideration paid for Yoke, total net assets acquired, identifiable assets and goodwill recognized at the acquisition date: ($ 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 $2.7 million arising from the acquisition includes the expected synergies between Yoke and the Company and intangible assets that do not qualify for separate recognition at the time of acquisition. The goodwill, which is deductible for income tax purposes, was assigned to the Company’s only reporting unit. The above table represents the final allocation of the purchase price, noting no material measurement period adjustments. Pro forma financial information of the acquisition is not presented due to the immaterial impact of the financial results of Yoke in the Company's Consolidated Financial Statements. |
FINANCE RECEIVABLES
FINANCE RECEIVABLES | 12 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
FINANCE RECEIVABLES | FINANCE RECEIVABLES The Company’s finance receivables consist of financed devices under the QuickStart program and devices contractually associated with the Seed platform. Predominately all of the Company’s finance receivables agreements are classified as non-cancellable sixty-month sales-type leases. As of June 30, 2023 and 2022, finance receivables consist of the following: As of June 30, ($ in thousands) 2023 2022 Current finance receivables, net $ 6,668 $ 6,721 Finance receivables due after one year, net 13,307 14,727 Total finance receivables, net of allowance of $2,098 and $760, respectively $ 19,975 $ 21,448 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. Credit risk for finance receivables is continuously monitored by management and reflected within the allowance for finance receivables. As our finance receivables generally have similar risk characteristics, our key credit quality indicator is the aging (days past due status) of our aggregated finance receivables balances. Specifically, we estimate our allowance by using an aging analysis of the aggregated finance receivables balances, primarily based on historical loss experience. Additionally, current conditions are analyzed to determine if the allowance calculation needs to be adjusted further for any qualitative factors impacting a customer’s ability to meet its financial obligations that is not already reflected through the historical loss analysis. The Company writes off finance receivable balances against the allowance for credit losses when management determines the balance is uncollectible and the Company ceases collection efforts. At June 30, 2023, 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 $ 6,595 $ 6,505 $ 3,304 $ 1,306 $ 846 $ 829 $ 19,385 30 days and under 66 73 69 52 22 68 350 31 - 60 days 53 40 32 42 19 71 257 61 - 90 days 60 52 26 32 16 71 257 Greater than 90 days 155 132 197 233 271 836 1,824 Total finance receivables $ 6,929 $ 6,802 $ 3,628 $ 1,665 $ 1,174 $ 1,875 $ 22,073 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 The following table represents a rollforward of the allowance for finance receivables for the year ending June 30, 2023 and 2022: ($ in thousands) Year ended June 30, 2023 Year ended June 30, 2022 Balance, beginning of period $ 760 $ 1,109 Provision for expected losses 1,626 36 Write-offs (288) (385) Balance, end of period $ 2,098 $ 760 Cash to be collected on our performing finance receivables due for each of the fiscal years after June 30, 2023 are as follows: ($ in thousands) 2024 $ 7,956 2025 6,126 2026 4,833 2027 3,050 2028 1,077 Thereafter 56 Total amounts to be collected 23,098 Less: interest (1,025) Less: allowance for expected credit losses (2,098) Total finance receivables $ 19,975 |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE Accounts receivable primarily include amounts due to the Company for sales of equipment and subscription fees, settlement receivables for amounts due from third-party payment processors, receivables from contract manufacturers and unbilled amounts due from customers, net of the allowance for credit losses. Accounts receivable, net of the allowance for uncollectible accounts were $30.2 million as of June 30, 2023 and $37.7 million as of June 30, 2022. Concentrations Accounts receivable with the Company's largest customer represented 1% and 17% of accounts receivable, net of allowance as of June 30, 2023 and June 30, 2022 respectively. The decrease resulted from the Company's prioritization of collection effort during the year. Allowance for credit losses The Company maintains an allowance for credit losses resulting from the inability of its customers to make required payments, including from a shortfall in the customer transaction fund flow from which the Company would normally collect amounts due. The allowance is calculated under an expected loss model. We estimate our allowance using an aging analysis (days past due status) of the receivables balances, primarily based on historical loss experience. Additionally, current conditions are analyzed to determine if the allowance calculation needs to be adjusted further for any qualitative factors impacting a customer’s ability to meet its financial obligations that is not already reflected through the historical loss analysis. The Company writes off receivable balances against the allowance for credit losses when management determines the balance is uncollectible and the Company ceases collection efforts. For the year ended June 30, 2023, the write-offs included approximately $1.1 million aged trade accounts receivable balances from 2020 and prior that were deemed uncollectible. The following table represents a rollforward of the allowance for credit losses for the years ending June 30, 2023 and 2022: Year ended June 30, ($ in thousands) 2023 2022 Balance, beginning of period $ 9,328 $ 7,715 Provision for expected losses 4,190 3,435 Write-offs (2,703) (1,822) Balance, end of period $ 10,815 $ 9,328 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following: As of June 30, 2023 ($ in thousands) Useful Cost Accumulated Net Computer equipment and software 3-7 years $ 8,089 $ (7,443) $ 646 Internal-use software 3-5 years 24,294 (5,107) 19,187 Property and equipment used for rental program 5 years 28,398 (23,221) 5,177 Furniture and equipment 3-7 years 1,559 (1,474) 85 Leasehold improvements (a) 790 (604) 186 $ 63,130 $ (37,849) $ 25,281 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 (a) Lesser of lease term or estimated useful life The Company's total depreciation expense is comprised of depreciation included in our cost of subscription and transaction fees for rental equipment and depreciation included in our operating expenses. Depreciation expense included within cost of subscription and transaction fees for rental equipment was $1.2 million, $1.0 million, and $1.4 million for the years ended June 30, 2023, 2022, and 2021, respectively. Depreciation expense included within operating expenses for the years ended June 30, 2023, 2022, and 2021 was $2.6 million, $1.1 million and $1.0 million, respectively. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill and intangible asset balances consisted of the following: As of June 30, 2023 Amortization ($ in thousands) Gross Accumulated Amortization Net Intangible assets: Brand and tradenames $ 2,161 $ (1,414) $ 747 1 - 7 years Developed technology 20,188 (11,066) 9,122 5 - 6 years Customer relationships 24,714 (6,771) 17,943 5 - 18 years Total intangible assets $ 47,063 $ (19,251) $ 27,812 Goodwill $ 92,005 $ — $ 92,005 Indefinite As of June 30, 2022 Amortization ($ in thousands) Gross Accumulated Amortization Net Intangible assets: Brand and tradenames $ 1,705 $ (1,133) $ 572 3 - 7 years Developed technology 11,129 (8,071) 3,058 5 - 6 years Customer relationships 19,339 (5,022) 14,317 10 - 18 years Total intangible assets $ 32,173 $ (14,226) $ 17,947 Goodwill $ 66,656 $ — $ 66,656 Indefinite For the years ended June 30, 2023, 2022 and 2021, amortization expense related to intangible assets was $5.0 million , $3.3 million and $3.1 million, respectively. The weighted-average remaining useful life of the finite-lived intangible assets was 16.2 years as of June 30, 2023, of which the weighted-average remaining useful life for the brand and tradenames was 2 years, for the developed technology was 4.1 years, and for the customer relationships was 10.1 years. The Company performs an annual goodwill impairment test on April 1 and more frequently if events and circumstances indicate that the asset might be impaired. The Company has determined that there is a single reporting unit for purposes of testing goodwill for impairment. During the years ended June 30, 2023, June 30, 2022 and June 30, 2021, the Company assessed goodwill for impairment utilizing a qualitative assessment. The Company did not recognize any impairment charges related to goodwill as a result of its qualitative assessment. Estimated annual amortization expense for intangible assets is as follows (in thousands): 2024 $ 5,201 2025 4,439 2026 4,241 2027 3,946 2028 2,249 Thereafter 7,736 $ 27,812 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Jun. 30, 2023 | |
Accrued Liabilities [Abstract] | |
ACCRUED EXPENSES | ACCRUED EXPENSES Accrued expenses consisted of the following as of June 30, 2023 and 2022: As of June 30, ($ in thousands) 2023 2022 Accrued sales tax $ 13,597 $ 14,694 Accrued compensation and related sales commissions 4,069 3,289 Operating lease liabilities - current 1,266 1,538 Accrued professional fees 4,196 4,200 Contingent consideration arrangement for Yoke Acquisition — 1,000 Accrued other taxes and filing fees 1,944 2,036 Accrued other 762 1,397 Consideration withheld in escrow for the 32M acquisition (1) 442 — Total accrued expenses $ 26,276 $ 28,154 (1) See Note 6 - Acquisition for details. |
DEBT AND OTHER FINANCING ARRANG
DEBT AND OTHER FINANCING ARRANGEMENTS | 12 Months Ended |
Jun. 30, 2023 | |
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, 2023 and 2022 consisted of the following: As of June 30, ($ in thousands) 2023 2022 JPMorgan Credit Facility (1) $ 38,563 $ 14,813 Other obligations 50 70 Less: unamortized issuance costs and debt discount (183) (261) Total 38,430 14,622 Less: debt and other financing arrangements, current (882) (692) Debt and other financing arrangements, noncurrent $ 37,548 $ 13,930 (1) See discussion below on amendment to the JPMorgan Credit Facil ity. Details of interest expense presented on the Consolidated Statements of Operations are as follows: Year ended June 30, ($ in thousands) 2023 2022 2021 2020 Antara Term Facility $ — $ — $ 2,779 JPMorgan Credit Facility 2,650 904 1,006 Interest expense related to change in sales tax reserve (326) (386) 218 Other interest expense 2 6 10 Total interest expense $ 2,326 $ 524 $ 4,013 JPMorgan Chase Bank Credit Agreement 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, except for those held by foreign subsidiaries. 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 and December 1, 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. On December 1, 2022, the Company entered into a first amendment (the “2022 Amendment”) to its Amended and Restated Credit Agreement, dated as of March 17, 2022, which, among other things, amended the definition of the Company’s EBITDA under the Credit Agreement. On December 1, 2022, the Company borrowed an additional $25 million under the Amended JPMorgan Credit Facility, including $15 million from the revolving credit facility and $10 million from the term facility, to partially fund the cash consideration of the 32M acquisition as referenced in Note 6 - Acquisition . No issuance costs were capitalized in connection with this amendment. 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, 2023 and 2022, the total applicable interest rate for the Amended Secured Term Facility were 9.0% and 4.4%, respectively. 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 un amortized 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, 2023. The expected maturities associated with the Company’s outstanding debt and other financing arrangements as of June 30, 2023, were as follows: 2024 $ 958 2025 1,333 2026 36,322 2027 — Principal amounts payable 38,613 Unamortized issuance costs (183) Total outstanding debt $ 38,430 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Jun. 30, 2023 | |
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 factors that would significantly impact 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, 2023, as the debt facility was recently amended in March and December, 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. |
SHAREHOLDER'S EQUITY AND PREFER
SHAREHOLDER'S EQUITY AND PREFERRED STOCK | 12 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
SHAREHOLDER'S EQUITY AND PREFERRED STOCK | SHAREHOLDER'S EQUITY AND PREFERRED STOCK Common Stock The Company has 640.0 million shares of common stock, no par value, authorized for issuance. Each holder of common stock is entitled to one vote for each share of common stock held of record by such holder on all matters on which stockholders are entitled to vote, including the election of directors. The Company had approximately 72.7 million and 71.2 million shares of common stock issued and outstanding, respectively, as of June 30, 2023 and June 30, 2022. Common Stock Dividends The holders of the common stock are entitled to receive dividends as the Board of Directors of the Company may from time to time declare out of funds legally available for payment of dividends. Through the date hereof, no cash dividends have been declared on the Company’s common stock or preferred stock. No dividend may be paid on the common stock until all accumulated and unpaid dividends on the preferred stock have been paid. Convertible Preferred Stock The Company has 1.8 million of preferred stock authorized for issuance which 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, 2023, 900,000 preferred shares have been designated as Series A Convertible Preferred Stock, no par value. 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. During the fiscal year 2023, the Company retired 59,281 shares of its Series A convertible preferred stock that it purchased for an aggregate amount of approximately $2.45 million. The repurchase transaction was primarily accounted for as an extinguishment of preferred stock and recorded as a decrease to the carrying value of the preferred stock in the amount of $0.42 million and common stock of $1.73 million for an aggregate amount of $2.15 million that was included within the Cash flows from financing activities in the Consolidated Statements of Cash Flows. The remaining $0.3 million was deemed to be an amount in excess of the fair value of the preferred stock and was recorded within Operating expenses in the Consolidated Statements of Operations and Cash flows from operating activities in the Consolidated Statements of Cash Flows. 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, 2023. 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 $10.00 for each outstanding share plus all cumulative unpaid dividends. If funds are insufficient for this distribution, the assets available will be distributed ratably among the preferred shareholders. The Series A Convertible Preferred Stock liquidation preference as of June 30, 2023 and 2022 is as follows: ($ in thousands) June 30, June 30, For shares outstanding at $10.00 per share $ 3,858 $ 4,451 Cumulative undeclared and unpaid dividends 18,286 17,662 $ 22,144 $ 22,113 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 inclusive of the cumulative undeclared and unpaid dividends because the Company has determined that a deemed liquidation event is not probable of occurring. Cumulative undeclared and unpaid dividends are convertible into common shares at $1,000 per common share at the option of the shareholder. During the years ended June 30, 2023, 2022 and 2021, no shares of Preferred Stock nor cumulative preferred dividends were converted into shares of common stock. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company has significant deferred tax assets, a substantial amount of which result from operating loss carryforwards. The Company routinely evaluates its ability to realize the benefits of these assets to determine whether it is more likely than not that such benefit will be realized. In accordance with the history of losses generated, the Company believes that for the year ended June 30, 2023, it is more likely than not that its deferred tax assets will not be realized. Accordingly, the Company has established a full valuation allowance on its net deferred tax assets. The Company intends to continue maintaining a full valuation allowance on its federal and state deferred tax assets until there is sufficient evidence to support the reversal of all or some portion of these allowances. However, given the Company’s current earnings and anticipated future earnings, the Company believes that there is a reasonable possibility that within the next 12 months, sufficient positive evidence may become available to allow the Company to reach a conclusion that a significant portion of the valuation allowance will no longer be needed. Release of the valuation allowance would result in the recognition of certain deferred tax assets and a decrease to income tax expense for the period the release is recorded. However, the exact timing and amount of the valuation allowance release are subject to change on the basis of the level of profitability that the Company is able to actually achieve. The provision for income taxes for the years ended June 30, 2023, 2022 and 2021 is comprised of the following: Year ended June 30, ($ in thousands) 2023 2022 2021 Current: Federal $ — $ — $ — State (92) (179) (328) Foreign — — — Total current (92) (179) (328) Deferred: Federal (62) (18) (12) State (27) 11 (30) Foreign — — — Total deferred (89) (7) (42) Total income tax provision $ (181) $ (186) $ (370) The components of pre-tax income (loss) are as follows: Year ended June 30, ($ in thousands) 2023 2022 2021 U.S. income (loss) $ 996 $ (1,517) $ (8,335) Other income (loss) (182) — — Total income (loss) $ 814 $ (1,517) $ (8,335) A reconciliation of the provision for income taxes for the years ended June 30, 2023, 2022 and 2021 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, 2023, June 30, 2022, and June 30, 2021 is as follows: Year ended June 30, ($ in thousands) 2023 2022 2021 U.S. federal statutory income tax rate $ (171) $ 319 $ 1,648 Effects of permanent differences Stock compensation $ (688) $ (184) $ 168 Other permanent differences $ (497) $ (106) $ 608 State income taxes, net of federal benefit $ (296) $ (275) $ 116 Changes related to prior years $ 51 $ — $ — Changes related to state tax rates $ (2,455) $ — $ — Changes in valuation allowances $ 3,942 $ 184 $ (2,927) Other $ (67) $ (124) $ 17 Effective income tax rate $ (181) $ (186) $ (370) As of June 30, 2023 the Company had federal and state operating loss carryforwards of approximately $179 million and $112 million, respectively, to offset future taxable income. As of June 30, 2022 the Company had federal and state operating loss carryforwards of approximately $190 million and $133 million, respectively, to offset future taxable income. The timing and extent to which the Company can utilize operating loss carryforwards in any year may be limited because of provisions of the Internal Revenue Code regarding changes in ownership of corporations (i.e. IRS Code Section 382). Federal and state operating loss carryforwards start to expire in 2023 and certain state operating loss carryforwards are currently expiring. The net deferred tax assets arose primarily from net operating loss carryforwards, as well as the use of different accounting methods for financial statement and income tax reporting purposes as follows: As of June 30, ($ in thousands) 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 42,614 $ 47,984 Asset reserves 6,500 6,666 Deferred research and development 2,856 1,503 Stock-based compensation 3,798 3,416 Other (978) (143) 54,790 59,426 Deferred tax liabilities: Intangibles (3,689) (4,316) Deferred tax assets, net 51,101 55,110 Valuation allowance (51,376) (55,296) Deferred tax liabilities $ (275) $ (186) As of June 30, 2023, the Company had total unrecognized income tax benefits of $0.7 million related to its nexus in certain state tax jurisdictions. If recognized in future years, $0.7 million of these currently unrecognized income tax benefits would impact the income tax provision and effective tax rate. The following table summarizes the activity related to unrecognized income tax benefits: Year ended June 30, ($ in thousands) 2023 2022 2021 Balance at the beginning of the year $ 572 $ 444 $ 207 Gross increases and decreases related to current period tax positions — — — Gross increases and decreases related to prior period tax positions 117 128 237 Balance at the end of the year $ 689 $ 572 $ 444 ended June 30, 2020 through June 30, 2022 re main 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 e nded June 30, 2020, ch anges 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, 2023, the Company did not have any income tax examinations in process. |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 12 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK BASED COMPENSATION | STOCK BASED COMPENSATION STOCK COMPENSATION PLANS The Company has three active stock based compensation plans at June 30, 2023 as shown in the table below: Date Approved Name of Plan Type of Plan Authorized 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 10,000,000 12,000,000 As of June 30, 2023, 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 of shares to former CEO George Jensen upon the occurrence of a Cantaloupe transaction (1) 140,000 Issuance under 2014 Stock Option Incentive Plan 15,687 Issuance under 2015 Equity Incentive Plan 339,492 Issuance under 2018 Equity Incentive Plan 5,421,009 Total shares reserved for future issuance 6,022,329 (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, 2023, 2022, and 2021 was determined using the following assumptions: For the year ended June 30, 2023 2022 2021 Expected volatility 74.6 - 77.6% 73.2 - 74.6% 74.3 - 77.3% Expected life (years) 4.4 - 4.6 4.5 - 4.6 4.5 Expected dividends 0.0% 0.0% 0.0% Risk-free interest rate 2.7 - 4.1% 1.0-2.9% 0.2-0.7% The following tables provide information about outstanding options for the years ended June 30, 2023, 2022, and 2021: For the year ended June 30, 2023 Number of Options Weighted Average Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding options, beginning of period 3,529,833 $ 7.41 4.5 $ 194 Granted 1,720,000 $ 4.61 Exercised — $ — $ — Forfeited (1,376,201) $ 6.86 Expired — $ — Outstanding options, end of period 3,873,632 $ 6.35 5.1 $ 7,595 Exercisable options, end of period 1,341,466 $ 7.26 3.9 $ 1,536 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 The weighted average grant date fair value per share for the Company's stock options granted during the years ended June 30, 2023, 2022, and 2021 was $2.89, $5.12, and $4.92, respectively. The total fair value of stock options vested during the years ended June 30, 2023, 2022, and 2021 was $3.8 million , $3.0 million, and $2.4 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. For the year ended June 30, 2023, the total net benefit recognized for these awards was $0.8 million, primarily as a result of reversing unvested grants for terminated executives during the period. The tota l expense rec ognized during the year ended June 30, 2022 for these awards was $1.0 million . COMMON 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. The company did not recognize any additional expenses related to the consulting agreements for the year ended June 30, 2023. A summary of the status of the Company’s nonvested common shares and RSUs as of June 30, 2023, 2022, and 2021, and changes during the years then ended is presented below: Shares Weighted-Average 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 Granted 346,346 5.41 Vested (274,011) 5.96 Forfeited (97,342) 8.27 Nonvested at June 30, 2023 423,901 $ 6.08 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, 2023, 2022, and 2021 is as follows (in thousands): For the year ended June 30, Award type 2023 2022 2021 Stock options $ 2,967 $ 4,424 $ 7,806 Stock grants 1,770 1,824 1,269 Total stock-based compensation expense $ 4,737 $ 6,248 $ 9,075 The Company recognized tax benefits of $1.4 million, $0.6 million, and $2.4 million related to stock compensation expense for the years ended June 30, 2023, 2022, and 2021, respectively. A summary of the Company's unrecognized stock-based compensation expense as of June 30, 2023 is as follows: As of June 30, 2023 Award type Unrecognized Expense Weighted Average Recognition Period Stock options $ 3,944 1.8 Stock grants $ 1,557 1.3 |
RETIREMENT PLAN
RETIREMENT PLAN | 12 Months Ended |
Jun. 30, 2023 | |
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 2023, 2022 and 2021, 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, 2023, 2022 and 2021 approximated $0.8 million |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jun. 30, 2023 | |
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. Securities and Exchange Commission (“SEC”) Inquiries and Settlement 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. In fiscal year 2023, the Company reached a settlement with the SEC to resolve the 2019 Investigation. As part of the settlement, the Company agreed to neither admit nor deny the findings in the SEC’s final order, and agreed to a cease-and-desist order with a civil monetary penalty payment of $1.5 million. The penalty payment was fully paid to the SEC as of June 30, 2023. Purchase Commitments |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Jun. 30, 2023 | |
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 t he year ended June 30, 2023 and 2022 for these arrangements were $0.4 million and $1.1 million, respectively. The Company did not recognize an expense related to this arrangement for the year ended June 30, 2021. See Note 16 - Stock-Based Compensation for information on transactions relating to Hudson Executive. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Pay vs Performance Disclosure | |||
Net income (loss) | $ 633 | $ (1,703) | $ (8,705) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND PREPARATION | BASIS OF PRESENTATION AND PREPARATION 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. The consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") on a going concern basis. 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. In connection with the Company's acquisition of Three Square Market, Inc., a Wisconsin corporation, and Three Square Market Limited, a UK private limited company (collectively "32M"), we assessed the foreign exchange impact associated with 32M's UK operations which utilizes the British Pound as its functional currency, and concluded the foreign currency fluctuations were immaterial to our financial statements including Consolidated Balance Sheets, Consolidated Statements of Operations, Consolidated Statements of Convertible Preferred Stock and Shareholders’ Equity, and Consolidated Statement of Cash Flows. The Company will continue to monitor and assess its exposures to foreign exchange fluctuations in future periods. |
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. In fiscal year 2023, the Company disaggregated General and administrative costs further by disclosing Integration and acquisition expenses separately. 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 2022 and 2021 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. 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 that are not eligible for capitalization. • 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. • Investigation, proxy solicitation, and restatement expenses: In fiscal year 2019, the Audit Committee, with the assistance of independent legal and forensic accounting advisors, conducted an internal investigation of then-current and prior period matters relating to certain of the Company’s contractual arrangements, including the accounting treatment, financial reporting and internal controls related to such arrangements (the “2019 Investigation”). The Company and former officers incurred additional legal expenses primarily relating to responding to inquiries from the Securities and Exchange Commission (“SEC”) in regards to the 2019 Investigation. • Integration and acquisition expenses: Integration and acquisition expenses consist primarily of professional services fees including accounting, legal and investing banking advisory fees incurred in connection with acquisitions and post-acquisition integrations. See Note 6 - Acquisitions to the consolidated financial statements for further information. • Depreciation and amortization: Depreciation expense on our property and equipment, excluding property and equipment used for rentals, amortization of capitalized internal-use software development costs, 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. 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, fair value of acquired assets and |
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. and U.K. |
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE Accounts receivable include amounts due to the Company for sales of equipment, other amounts due from customers, merchant service receivables which are receivables due from credit card processors, and unbilled amounts due from customers, net of the allowance for uncollectible accounts. See "Allowance for Accounts and Finance Receivables" section below for details. |
FINANCE RECEIVABLES | FINANCE RECEIVABLES The Company offers extended payment terms to certain customers for equipment sales primarily 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 |
ALLOWANCE FOR ACCOUNTS AND FINANCE RECEIVABLES | ALLOWANCE FOR ACCOUNTS AND FINANCE RECEIVABLES The Company maintains lifetime expected loss allowances for accounts and finance receivables based on 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 less than one year for accounts receivable and five years for finance receivables. Historical loss experience is utilized as there have been no significant changes in the mix or risk characteristics of the receivable revenue streams used to calculate historical loss rates. Current conditions are analyzed at each measurement date to reassess whether our receivables continue to exhibit similar risk characteristics as the prior measurement date, and determine if the allowance calculation needs to be adjusted for new developments, such as a customer’s inability to meet its financial obligations. Reasonable and supportable macroeconomic trends also are incorporated into the analysis as warranted. Estimating the allowances therefore 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 receivables that we are unable to collect may be different than the amounts initially estimated in the allowances. The provision for expected credit losses relating to accounts receivable and finance receivable balances is recorded within general and administrative expenses in the Consolidated Statements of Operations. |
ALLOWANCE FOR ACCOUNTS AND FINANCE RECEIVABLES | ALLOWANCE FOR ACCOUNTS AND FINANCE RECEIVABLES The Company maintains lifetime expected loss allowances for accounts and finance receivables based on 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 less than one year for accounts receivable and five years for finance receivables. Historical loss experience is utilized as there have been no significant changes in the mix or risk characteristics of the receivable revenue streams used to calculate historical loss rates. Current conditions are analyzed at each measurement date to reassess whether our receivables continue to exhibit similar risk characteristics as the prior measurement date, and determine if the allowance calculation needs to be adjusted for new developments, such as a customer’s inability to meet its financial obligations. Reasonable and supportable macroeconomic trends also are incorporated into the analysis as warranted. Estimating the allowances therefore 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 receivables that we are unable to collect may be different than the amounts initially estimated in the allowances. The provision for expected credit losses relating to accounts receivable and finance receivable balances is recorded within general and administrative expenses in the Consolidated Statements of Operations. |
INVENTORY, NET | INVENTORY, NET Inventory consists primarily of finished goods. The company's inventories are valued at the lower of cost or net realizable value, using a weighted-average cost method. The Company establishes reserves for slow-moving inventory based upon quality considerations and assumptions about future demand and market conditions. The reserve is recorded within Cost of equipment sales in our Consolidated Statements of Operations. The inventory reserve was $2.3 million and $2.5 million |
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. Capitalized internal-use software is amortized on the straight-line basis over the estimated useful lives of the software. Leasehold improvements are amortized on the straight-line basis over the lesser of the estimated useful life of the asset or the respective |
GOODWILL | GOODWILL The Company’s goodwill represents the excess of cost over fair value of the net assets purchased in acquisitions. 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 Company has selected April 1 as its annual test date. The Company has concluded there has been no impairment of goodwill during the year ended June 30, 2023 based on its qualitative assessment. There has been no impairment of goodwill for fiscal year 2022, or 2021. 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 names, customer relationships, acquired tradenames, acquired developed technology and acquired customer relationships in a 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 assesses its finite-lived intangible and other long-lived assets for impairment 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. |
SIGNIFICANT CUSTOMERS | SIGNIFICANT CUSTOMERS Concentration of revenue with customers subject the Company to operating risks. Approximately $28.7 million, $29.7 million, and $27.3 million of the Company’s revenue for the years ended June 30, 2023, 2022 and 2021, respectively, were concentrated with one customer, which represented 12%, 14% and 16% of the Company's revenue for each of the years. The Company’s customers are principally located in the United States. |
REVENUE RECOGNITION | REVENUE RECOGNITION The revenue recognition guidanc e 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 self-service commerce. 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 primary business model is to act as the Merchant of Record for its sellers. We provide cashless 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, 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 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 integrated cashless services 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 payment processing 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 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 payment processing 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. Software services represent a separate performance obligation, which is satisfied when each distinct day, or for practical reasons, each distinct month of service is transferred to the customers. Customers are billed for software services on a monthly basis. Payment is 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. 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 the related liability is 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 when the performance obligation is satisfied. 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 subscription and transaction fees 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 operating 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 primarily through our QuickStart program. We account for these transactions as sales-type leases under ASC 606. 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. Lessor consideration is allocated between lease components and the non-lease components using the requirements under Topic 606. Revenue from sales-type leases is recognized upon shipment to the customer and the interest portion is deferred and recognized as earned. The revenues related to the sales-type leases are included in Equipment sales in the Consolidated Statements of Operations and a portion of the lease payments as interest income. Revenue from operating leases is recognized ratably over the applicable service period with service fee revenue related to the leases included in Subscription and transaction fees in the Consolidated Statements of Operations. |
SHIPPING AND HANDLING | SHIPPING AND HANDLING Shipping and handling fees billed to our customers in connection with sales are recorded as revenue. The costs incurred for shipping and handling of our product are recorded as cost of equipment. |
ADVERTISING COSTS | ADVERTISING COSTSAdvertising costs are expensed as incurred and are included within the sales and marketing expenses in the Consolidated Statements of Operations. |
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, $3.5 million and $3.9 million, for the fiscal years ended June 30, 2023, 2022, and 2021, 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 in the application development stage after the completion of the preliminary project stage, and 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, and it ends at the implementation stage. 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. |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION 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, and the awards are marked to market until grant date occurs. 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. Changes to the sales tax reserve amount are recorded within general and administrative expenses and interest expense in the Consolidated Statements of Operations, and accrued expense 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. |
EARNINGS (LOSS) PER COMMON SHARE | EARNINGS (LOSS) PER COMMON SHAREBasic 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. |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Accounting pronouncements adopted ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments On July 1, 2020, the Company adopted ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASC 326) 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 for periods reported after July 1, 2020. 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. ASU 2021-05 - Lessors – Certain Leases with Variable Lease Payments On July 1, 2022, the Company adopted ASU No. 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. The adoption of this accounting standard did not materially impact the Company’s consolidated financial statements. ASU 2020-06 Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity On July 1, 2022, the Company adopted ASU No. 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. The adoption of this accounting standard did not materially impact the Company’s consolidated financial statements. Reference Rate Reform (Topic 848) 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 to U.S. GAAP guidance on contract modifications and hedging accounting to ease the financial reporting impacts related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rate (SOFR). 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. In December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848”, which defers the sunset date of Topic 848 to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. As of June 30, 2023, the Company's variable rate loans were indexed to SOFR. The adoption of ASU 2020-04 and the related amendments did not have a material impact on 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. |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Assets and Liabilities | ($ in thousands) Balance Sheet Classification As of June 30, 2023 As of June 30, 2022 Assets Operating leases Operating lease right-of-use assets $ 2,575 $ 2,370 Liabilities Current Accrued expenses 1,266 1,538 Long-term Operating lease liabilities, non-current 2,504 2,366 Total lease liabilities $ 3,770 $ 3,904 |
Lease Costs | Components of lease cost are as follows: ($ in thousands) Year ended June 30, 2023 Year ended June 30, 2022 Year ended June 30, 2021 Operating lease costs* $ 2,490 $ 1,923 $ 2,079 * Includes short-term lease and variable lease costs of $0.4 million for the year ended June 30, 2023, 2022 and 2021. Supplemental cash flow information and non-cash activity related to our leases are as follows: ($ in thousands) Year ended June 30, 2023 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 $ 2,522 $ 1,737 $ 1,635 Non-cash activity: Right-of-use assets obtained in exchange for lease obligations Operating lease $ 1,607 $ 471 $ — Weighted-average remaining lease term and discount rate for our leases are as follows: Year ended June 30, 2023 Year ended June 30, 2022 Weighted-average remaining lease term (years) Operating leases 3.2 3.4 Weighted-average discount rate Operating leases 7.5 % 6.8 % |
Maturities of Lease Liabilities, Operating Leases | Maturities of lease liabilities by fiscal year for our leases as of June 30, 2023 are as follows: ($ in thousands) Operating 2024 $ 1,502 2025 1,181 2026 1,102 2027 462 2028 — Total lease payments $ 4,247 Less: Imputed interest (477) Present value of lease liabilities $ 3,770 |
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: As of June 30, ($ in thousands) 2023 2022 Cost $ 28,398 $ 25,242 Accumulated depreciation (23,221) (22,914) Net $ 5,177 $ 2,328 |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
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) 2023 2022 2021 Transaction fees $ 132,594 $ 110,695 $ 85,497 Subscription fees 67,629 58,155 53,745 Subscription and transaction fees 200,223 168,850 139,242 Equipment sales 43,418 36,352 27,697 Total revenues $ 243,641 $ 205,202 $ 166,939 |
Contract Liability | The Company's contract liability (i.e., deferred revenue) balances are as follows: Year ended June 30, ($ in thousands) 2023 2022 Deferred revenue, beginning of the period $ 1,893 $ 1,763 Deferred revenue, end of the period 1,666 1,893 Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period 576 383 |
Future Performance Obligations | The following table reflects the estimated fees to be recognized in the future related to performance obligations that are unsatisfied as of June 30, 2023: ($ in thousands) As of June 30, 2023 2024 $ 4,860 2025 4,775 Thereafter 2,257 Total $ 11,892 |
EARNINGS (LOSS) PER SHARE CAL_2
EARNINGS (LOSS) PER SHARE CALCULATION (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Loss Per Share | Year ended June 30, ($ in thousands, except share and per share data) 2023 2022 2021 Numerator for basic and diluted earnings (loss) per share Net income (loss) $ 633 $ (1,703) $ (8,705) Preferred dividends (623) (668) (668) Net income (loss) available to common shareholders $ 10 $ (2,371) $ (9,373) Denominator for basic earnings (loss) per share - Weighted average shares outstanding 71,978,901 71,091,790 67,002,438 Effect of dilutive potential common shares 535,733 — — Denominator for diluted earnings (loss) per share - Adjusted weighted average shares outstanding 72,514,634 71,091,790 67,002,438 Basic earnings (loss) per share $ — $ (0.03) $ (0.14) Diluted earnings (loss) per share $ — $ (0.03) $ (0.14) |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisition | The estimated fair value of the purchase price consideration consisted of the following: ($ in thousands) Closing cash consideration $ 36,605 Stock Consideration 4,506 Fair value of total consideration transferred $ 41,111 The following table summarizes the adjusted fair value assigned to the assets acquired and liabilities assumed as of June 30, 2023. ($ in thousands) Amount Cash and cash equivalents $ 891 Accounts receivable 1,780 Inventories 2,011 Intangible assets 14,904 Other assets 670 Total identifiable assets acquired 20,256 Accounts payable (2,358) Tax liabilities (2,095) Total liabilities assumed (4,453) Total identifiable net assets 15,803 Goodwill 25,308 Fair value of total consideration transferred $ 41,111 ($ 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 |
Schedule of Pro Forma Operations Results | Year ended June 30, (In thousands) 2023 2022 Revenues $ 251,979 $ 222,185 Net loss (75) (7,117) The unaudited supplemental pro forma financial information for the year ended June 30, 2023 was adjusted to exclude $3.1 million of acquisition related costs, the components of which were previously described. The unaudited supplemental pro forma financial information for the year ended June 30, 2022 was adjusted to include the $3.1 million of acquisition related costs. |
FINANCE RECEIVABLES (Tables)
FINANCE RECEIVABLES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Schedule of finance receivables | As of June 30, 2023 and 2022, finance receivables consist of the following: As of June 30, ($ in thousands) 2023 2022 Current finance receivables, net $ 6,668 $ 6,721 Finance receivables due after one year, net 13,307 14,727 Total finance receivables, net of allowance of $2,098 and $760, respectively $ 19,975 $ 21,448 |
Schedule of credit quality indicators | At June 30, 2023, 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 $ 6,595 $ 6,505 $ 3,304 $ 1,306 $ 846 $ 829 $ 19,385 30 days and under 66 73 69 52 22 68 350 31 - 60 days 53 40 32 42 19 71 257 61 - 90 days 60 52 26 32 16 71 257 Greater than 90 days 155 132 197 233 271 836 1,824 Total finance receivables $ 6,929 $ 6,802 $ 3,628 $ 1,665 $ 1,174 $ 1,875 $ 22,073 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 |
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, 2023 and 2022: ($ in thousands) Year ended June 30, 2023 Year ended June 30, 2022 Balance, beginning of period $ 760 $ 1,109 Provision for expected losses 1,626 36 Write-offs (288) (385) Balance, end of period $ 2,098 $ 760 |
Schedule of financing receivable | Cash to be collected on our performing finance receivables due for each of the fiscal years after June 30, 2023 are as follows: ($ in thousands) 2024 $ 7,956 2025 6,126 2026 4,833 2027 3,050 2028 1,077 Thereafter 56 Total amounts to be collected 23,098 Less: interest (1,025) Less: allowance for expected credit losses (2,098) Total finance receivables $ 19,975 |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Rollforward of the Allowance for Credit Losses | The following table represents a rollforward of the allowance for credit losses for the years ending June 30, 2023 and 2022: Year ended June 30, ($ in thousands) 2023 2022 Balance, beginning of period $ 9,328 $ 7,715 Provision for expected losses 4,190 3,435 Write-offs (2,703) (1,822) Balance, end of period $ 10,815 $ 9,328 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Property and equipment consisted of the following: As of June 30, 2023 ($ in thousands) Useful Cost Accumulated Net Computer equipment and software 3-7 years $ 8,089 $ (7,443) $ 646 Internal-use software 3-5 years 24,294 (5,107) 19,187 Property and equipment used for rental program 5 years 28,398 (23,221) 5,177 Furniture and equipment 3-7 years 1,559 (1,474) 85 Leasehold improvements (a) 790 (604) 186 $ 63,130 $ (37,849) $ 25,281 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 (a) Lesser of lease term or estimated useful life |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of intangible asset balances | Goodwill and intangible asset balances consisted of the following: As of June 30, 2023 Amortization ($ in thousands) Gross Accumulated Amortization Net Intangible assets: Brand and tradenames $ 2,161 $ (1,414) $ 747 1 - 7 years Developed technology 20,188 (11,066) 9,122 5 - 6 years Customer relationships 24,714 (6,771) 17,943 5 - 18 years Total intangible assets $ 47,063 $ (19,251) $ 27,812 Goodwill $ 92,005 $ — $ 92,005 Indefinite As of June 30, 2022 Amortization ($ in thousands) Gross Accumulated Amortization Net Intangible assets: Brand and tradenames $ 1,705 $ (1,133) $ 572 3 - 7 years Developed technology 11,129 (8,071) 3,058 5 - 6 years Customer relationships 19,339 (5,022) 14,317 10 - 18 years Total intangible assets $ 32,173 $ (14,226) $ 17,947 Goodwill $ 66,656 $ — $ 66,656 Indefinite |
Schedule of estimated annual amortization expense | Estimated annual amortization expense for intangible assets is as follows (in thousands): 2024 $ 5,201 2025 4,439 2026 4,241 2027 3,946 2028 2,249 Thereafter 7,736 $ 27,812 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Accrued Liabilities [Abstract] | |
Schedule of accrued expenses | Accrued expenses consisted of the following as of June 30, 2023 and 2022: As of June 30, ($ in thousands) 2023 2022 Accrued sales tax $ 13,597 $ 14,694 Accrued compensation and related sales commissions 4,069 3,289 Operating lease liabilities - current 1,266 1,538 Accrued professional fees 4,196 4,200 Contingent consideration arrangement for Yoke Acquisition — 1,000 Accrued other taxes and filing fees 1,944 2,036 Accrued other 762 1,397 Consideration withheld in escrow for the 32M acquisition (1) 442 — Total accrued expenses $ 26,276 $ 28,154 (1) See Note 6 - Acquisition for details. |
DEBT AND OTHER FINANCING ARRA_2
DEBT AND OTHER FINANCING ARRANGEMENTS (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt and Other Financing Arrangements | The Company's debt and other financing arrangements as of June 30, 2023 and 2022 consisted of the following: As of June 30, ($ in thousands) 2023 2022 JPMorgan Credit Facility (1) $ 38,563 $ 14,813 Other obligations 50 70 Less: unamortized issuance costs and debt discount (183) (261) Total 38,430 14,622 Less: debt and other financing arrangements, current (882) (692) Debt and other financing arrangements, noncurrent $ 37,548 $ 13,930 (1) See discussion below on amendment to the JPMorgan Credit Facil ity. Details of interest expense presented on the Consolidated Statements of Operations are as follows: Year ended June 30, ($ in thousands) 2023 2022 2021 2020 Antara Term Facility $ — $ — $ 2,779 JPMorgan Credit Facility 2,650 904 1,006 Interest expense related to change in sales tax reserve (326) (386) 218 Other interest expense 2 6 10 Total interest expense $ 2,326 $ 524 $ 4,013 |
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, 2023, were as follows: 2024 $ 958 2025 1,333 2026 36,322 2027 — Principal amounts payable 38,613 Unamortized issuance costs (183) Total outstanding debt $ 38,430 |
SHAREHOLDER'S EQUITY AND PREF_2
SHAREHOLDER'S EQUITY AND PREFERRED STOCK (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of preferred stock | The Series A Convertible Preferred Stock liquidation preference as of June 30, 2023 and 2022 is as follows: ($ in thousands) June 30, June 30, For shares outstanding at $10.00 per share $ 3,858 $ 4,451 Cumulative undeclared and unpaid dividends 18,286 17,662 $ 22,144 $ 22,113 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of benefit (provision) for income taxes | The provision for income taxes for the years ended June 30, 2023, 2022 and 2021 is comprised of the following: Year ended June 30, ($ in thousands) 2023 2022 2021 Current: Federal $ — $ — $ — State (92) (179) (328) Foreign — — — Total current (92) (179) (328) Deferred: Federal (62) (18) (12) State (27) 11 (30) Foreign — — — Total deferred (89) (7) (42) Total income tax provision $ (181) $ (186) $ (370) |
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, 2023, 2022 and 2021 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, 2023, June 30, 2022, and June 30, 2021 is as follows: Year ended June 30, ($ in thousands) 2023 2022 2021 U.S. federal statutory income tax rate $ (171) $ 319 $ 1,648 Effects of permanent differences Stock compensation $ (688) $ (184) $ 168 Other permanent differences $ (497) $ (106) $ 608 State income taxes, net of federal benefit $ (296) $ (275) $ 116 Changes related to prior years $ 51 $ — $ — Changes related to state tax rates $ (2,455) $ — $ — Changes in valuation allowances $ 3,942 $ 184 $ (2,927) Other $ (67) $ (124) $ 17 Effective income tax rate $ (181) $ (186) $ (370) |
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) 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 42,614 $ 47,984 Asset reserves 6,500 6,666 Deferred research and development 2,856 1,503 Stock-based compensation 3,798 3,416 Other (978) (143) 54,790 59,426 Deferred tax liabilities: Intangibles (3,689) (4,316) Deferred tax assets, net 51,101 55,110 Valuation allowance (51,376) (55,296) Deferred tax liabilities $ (275) $ (186) |
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) 2023 2022 2021 Balance at the beginning of the year $ 572 $ 444 $ 207 Gross increases and decreases related to current period tax positions — — — Gross increases and decreases related to prior period tax positions 117 128 237 Balance at the end of the year $ 689 $ 572 $ 444 |
Schedule of Pre-Tax Income (Loss) | The components of pre-tax income (loss) are as follows: Year ended June 30, ($ in thousands) 2023 2022 2021 U.S. income (loss) $ 996 $ (1,517) $ (8,335) Other income (loss) (182) — — Total income (loss) $ 814 $ (1,517) $ (8,335) |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of stock based compensation plans | The Company has three active stock based compensation plans at June 30, 2023 as shown in the table below: Date Approved Name of Plan Type of Plan Authorized 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 10,000,000 12,000,000 |
Schedule of common stock for future issuance | As of June 30, 2023, 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 of shares to former CEO George Jensen upon the occurrence of a Cantaloupe transaction (1) 140,000 Issuance under 2014 Stock Option Incentive Plan 15,687 Issuance under 2015 Equity Incentive Plan 339,492 Issuance under 2018 Equity Incentive Plan 5,421,009 Total shares reserved for future issuance 6,022,329 (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, 2023, 2022, and 2021 was determined using the following assumptions: For the year ended June 30, 2023 2022 2021 Expected volatility 74.6 - 77.6% 73.2 - 74.6% 74.3 - 77.3% Expected life (years) 4.4 - 4.6 4.5 - 4.6 4.5 Expected dividends 0.0% 0.0% 0.0% Risk-free interest rate 2.7 - 4.1% 1.0-2.9% 0.2-0.7% |
Schedule of information related to outstanding options | The following tables provide information about outstanding options for the years ended June 30, 2023, 2022, and 2021: For the year ended June 30, 2023 Number of Options Weighted Average Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding options, beginning of period 3,529,833 $ 7.41 4.5 $ 194 Granted 1,720,000 $ 4.61 Exercised — $ — $ — Forfeited (1,376,201) $ 6.86 Expired — $ — Outstanding options, end of period 3,873,632 $ 6.35 5.1 $ 7,595 Exercisable options, end of period 1,341,466 $ 7.26 3.9 $ 1,536 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 |
Schedule of nonvested share activity | A summary of the status of the Company’s nonvested common shares and RSUs as of June 30, 2023, 2022, and 2021, and changes during the years then ended is presented below: Shares Weighted-Average 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 Granted 346,346 5.41 Vested (274,011) 5.96 Forfeited (97,342) 8.27 Nonvested at June 30, 2023 423,901 $ 6.08 |
Schedule of stock-based compensation expense | A summary of the Company's stock-based compensation expense recognized during the years ended June 30, 2023, 2022, and 2021 is as follows (in thousands): For the year ended June 30, Award type 2023 2022 2021 Stock options $ 2,967 $ 4,424 $ 7,806 Stock grants 1,770 1,824 1,269 Total stock-based compensation expense $ 4,737 $ 6,248 $ 9,075 A summary of the Company's unrecognized stock-based compensation expense as of June 30, 2023 is as follows: As of June 30, 2023 Award type Unrecognized Expense Weighted Average Recognition Period Stock options $ 3,944 1.8 Stock grants $ 1,557 1.3 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounts Receivable and Allowance For Doubtful Accounts (Details) | 12 Months Ended |
Jun. 30, 2023 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 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Finance Receivables (Details) | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Term of notes receivable or quick start leases | 60 months |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Inventory, Net (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Jun. 30, 2022 |
Accounting Policies [Abstract] | ||
Inventory reserve | $ 2.3 | $ 2.5 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Goodwill (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accounting Policies [Abstract] | |||
Goodwill, impairment loss | $ 0 | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Intangible and Long-lived Assets (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | $ 0 | $ 0 | |
Impairment of intangible and long-lived assets | 0 | 0 | |
Operating lease right-of-use asset impairment | $ 0 | $ 0 | $ 1,578,000 |
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 3 years | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization period | 18 years |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Significant Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Concentration Risk [Line Items] | |||
Revenue | $ 243,641 | $ 205,202 | $ 166,939 |
Customer One | Revenue from Rights Concentration Risk | Revenue Benchmark | |||
Concentration Risk [Line Items] | |||
Revenue | $ 28,700 | $ 29,700 | $ 27,300 |
Concentration percentage | 12% | 14% | 16% |
Manufacturer One | Customer Concentration Risk | Revenue Benchmark | |||
Concentration Risk [Line Items] | |||
Concentration percentage | 16% |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition and Equipment Rental (Details) | 12 Months Ended |
Jun. 30, 2023 | |
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 |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Lessor, Lease, Description [Line Items] | |||
Operating lease right-of-use asset impairment | $ 0 | $ 0 | $ 1,578 |
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 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Advertising Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accounting Policies [Abstract] | |||
Advertising costs | $ 0.8 | $ 0.7 | $ 0.3 |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Research and Development (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accounting Policies [Abstract] | |||
Research and development expense | $ 3.5 | $ 3.5 | $ 3.9 |
SUMMARY OF SIGNIFICANT ACCOU_13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Software Development Costs (Details) | Jun. 30, 2023 |
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, 2023 | Jun. 30, 2022 |
Assets | ||
Operating leases | $ 2,575 | $ 2,370 |
Liabilities | ||
Operating lease liabilities - current | $ 1,266 | $ 1,538 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities, Current | Accrued Liabilities, Current |
Operating lease liabilities, non-current | $ 2,504 | $ 2,366 |
Total lease liabilities | $ 3,770 | $ 3,904 |
LEASES - Components of Lease Co
LEASES - Components of Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | |||
Operating lease costs | $ 2,490 | $ 1,923 | $ 2,079 |
Short-term lease and variable lease costs | $ 400 | $ 400 | $ 400 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | |||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 2,522 | $ 1,737 | $ 1,635 |
Operating lease | $ 1,607 | $ 471 | $ 0 |
LEASES - Weighted-Average Remai
LEASES - Weighted-Average Remaining Lease Term and Weighted-Average Discount Rate (Details) | Jun. 30, 2023 | Jun. 30, 2022 |
Leases [Abstract] | ||
Weighted-average remaining lease term, Operating leases | 3 years 2 months 12 days | 3 years 4 months 24 days |
Weighted-average discount rate, Operating leases | 7.50% | 6.80% |
LEASES - Maturities of Lease Li
LEASES - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Operating Leases | ||
2024 | $ 1,502 | |
2025 | 1,181 | |
2026 | 1,102 | |
2027 | 462 | |
2028 | 0 | |
Total lease payments | 4,247 | |
Less: Imputed interest | (477) | |
Present value of lease liabilities | $ 3,770 | $ 3,904 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | Jun. 30, 2023 | May 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | |||
Lease term | 133 months | 48 months | |
Operating lease extension period | 70 months |
LEASES - Property and Equipment
LEASES - Property and Equipment Costs (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Leases [Abstract] | ||
Cost | $ 28,398 | $ 25,242 |
Accumulated depreciation | (23,221) | (22,914) |
Net | $ 5,177 | $ 2,328 |
REVENUE - Schedule of Revenue (
REVENUE - Schedule of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 243,641 | $ 205,202 | $ 166,939 |
Transaction fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 132,594 | 110,695 | 85,497 |
Subscription fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 67,629 | 58,155 | 53,745 |
Subscription and transaction fees | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 200,223 | 168,850 | 139,242 |
Equipment sales | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 43,418 | $ 36,352 | $ 27,697 |
REVENUE - Contract Liability (D
REVENUE - Contract Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue, beginning of the period | $ 1,893 | $ 1,763 |
Deferred revenue, end of the period | 1,666 | 1,893 |
Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period | $ 576 | $ 383 |
REVENUE - Performance Obligatio
REVENUE - Performance Obligations (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation | $ 11,892 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation | $ 4,860 |
Performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation | $ 4,775 |
Performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation | $ 2,257 |
Performance obligation, period |
REVENUE - Additional Informatio
REVENUE - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Rentals contractual term | 36 months | |
Amortization of capitalized contract costs | $ 0.8 | $ 0.7 |
Prepaid Expenses and Other Current Assets | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Capitalized costs to obtain contracts | 0.6 | 0.5 |
Noncurrent Assets | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Capitalized costs to obtain contracts | $ 2.8 | $ 2.3 |
EARNINGS (LOSS) PER SHARE CAL_3
EARNINGS (LOSS) PER SHARE CALCULATION - Calculation of Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Numerator for basic and diluted earnings (loss) per share | |||
Net income (loss) | $ 633 | $ (1,703) | $ (8,705) |
Preferred dividends | (623) | (668) | (668) |
Net income (loss) available to common shareholders | $ 10 | $ (2,371) | $ (9,373) |
Denominator for basic earnings (loss) per share - Weighted average shares outstanding (in shares) | 71,978,901 | 71,091,790 | 67,002,438 |
Effect of dilutive potential common shares (in shares) | 535,733 | 0 | 0 |
Denominator for diluted earnings (loss) per share - Adjusted weighted average shares outstanding (in shares) | 72,514,634 | 71,091,790 | 67,002,438 |
Basic earnings (loss) per share (in USD per share) | $ 0 | $ (0.03) | $ (0.14) |
Diluted earnings (loss) per share (in USD per share) | $ 0 | $ (0.03) | $ (0.14) |
EARNINGS (LOSS) PER SHARE CAL_4
EARNINGS (LOSS) PER SHARE CALCULATION - Additional Information (Details) - shares shares in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |||
Antidilutive shares excluded from the calculation of diluted loss per shares (in shares) | 4 | 5 | 4 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 7 Months Ended | 12 Months Ended | |||||
Jun. 30, 2023 | Dec. 01, 2022 | Jul. 27, 2022 | Aug. 31, 2021 | Jun. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Business Acquisition [Line Items] | ||||||||
Closing cash consideration | $ 35,714 | $ 2,966 | $ 0 | |||||
Proceeds from long-term debt | $ 25,000 | 738 | 14,550 | |||||
Estimated useful life | 16 years 2 months 12 days | |||||||
Additional amortization associated with the increase in fair value of recognized intangible assets | $ 5,000 | 3,300 | 3,100 | |||||
Net income (loss) | 633 | (1,703) | $ (8,705) | |||||
Goodwill | $ 92,005 | $ 2,700 | $ 92,005 | 92,005 | 66,656 | |||
Term Facility | 2021 JPMorgan Secured Term Facility | Line of Credit | ||||||||
Business Acquisition [Line Items] | ||||||||
Proceeds from long-term debt | $ 25,000 | |||||||
Three Square Market, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Fair value of total consideration transferred | 41,111 | |||||||
Closing cash consideration | $ 36,605 | |||||||
Number of shares issued in business acquisition | 1,240,920 | |||||||
Value of shares issued in business acquisition | $ 4,506 | |||||||
Escrow deposit | 500 | 500 | 500 | |||||
Goodwill acquired | 25,300 | 25,300 | 25,300 | |||||
Net increase in overall purchase price consideration | 300 | |||||||
Decrease in working capital related accounts | 1,100 | |||||||
Increase in intangible assets | 1,700 | |||||||
Decrease in goodwill | 300 | |||||||
Additional amortization associated with the increase in fair value of recognized intangible assets | 200 | |||||||
Acquisition related costs | 3,100 | $ 3,100 | ||||||
Revenues from acquisition date | 13,200 | |||||||
Net income (loss) | 2,500 | |||||||
Goodwill | $ 25,308 | $ 25,308 | $ 25,308 | |||||
Three Square Market, Inc. | Term Facility | 2021 JPMorgan Secured Term Facility | Line of Credit | ||||||||
Business Acquisition [Line Items] | ||||||||
Proceeds from long-term debt | $ 25,000 | |||||||
Three Square Market, Inc. | Release, Period One | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of shares released from escrow | 50% | 50% | 50% | |||||
Three Square Market, Inc. | Release, Period Two | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of shares released from escrow | 50% | 50% | 50% | |||||
Yoke | ||||||||
Business Acquisition [Line Items] | ||||||||
Fair value of total consideration transferred | 3,966 | |||||||
Closing cash consideration | 2,966 | |||||||
Cash paid for acquisition | $ 1,000 | 3,000 | ||||||
Contingent consideration arrangement | 1,000 | |||||||
Goodwill | 2,710 | |||||||
Developed Technology Rights | Three Square Market, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets acquired | $ 9,000 | |||||||
Developed Technology Rights | Yoke | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets acquired | 900 | |||||||
Customer relationships | ||||||||
Business Acquisition [Line Items] | ||||||||
Estimated useful life | 10 years 1 month 6 days | |||||||
Customer relationships | Three Square Market, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets acquired | 5,400 | |||||||
Estimated useful life | 5 years | |||||||
Customer relationships | Yoke | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets acquired | 300 | |||||||
Trade Names | Three Square Market, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets acquired | $ 500 | |||||||
Estimated useful life | 3 years | |||||||
Trade Names | Yoke | ||||||||
Business Acquisition [Line Items] | ||||||||
Intangible assets acquired | $ 100 | |||||||
Developed technology | ||||||||
Business Acquisition [Line Items] | ||||||||
Estimated useful life | 4 years 1 month 6 days | |||||||
Developed technology | Three Square Market, Inc. | ||||||||
Business Acquisition [Line Items] | ||||||||
Estimated useful life | 5 years |
ACQUISITIONS - Summary of Purch
ACQUISITIONS - Summary of Purchase Price Consideration (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Business Acquisition [Line Items] | ||||
Closing cash consideration | $ 35,714 | $ 2,966 | $ 0 | |
Three Square Market, Inc. | ||||
Business Acquisition [Line Items] | ||||
Closing cash consideration | $ 36,605 | |||
Stock Consideration | 4,506 | |||
Fair value of total consideration transferred | $ 41,111 |
ACQUISITIONS - Summary of Asset
ACQUISITIONS - Summary of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Aug. 31, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 92,005 | $ 66,656 | $ 2,700 |
Three Square Market, Inc. | |||
Business Acquisition [Line Items] | |||
Cash and cash equivalents | 891 | ||
Accounts receivable | 1,780 | ||
Inventories | 2,011 | ||
Intangible assets | 14,904 | ||
Other assets | 670 | ||
Total identifiable assets acquired | 20,256 | ||
Accounts payable | (2,358) | ||
Tax liabilities | (2,095) | ||
Total liabilities assumed | (4,453) | ||
Total identifiable net assets | 15,803 | ||
Goodwill | 25,308 | ||
Fair value of total consideration transferred | $ 41,111 |
ACQUISITIONS - Pro Forma Result
ACQUISITIONS - Pro Forma Results (Details) - Three Square Market, Inc. - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Revenues | $ 251,979 | $ 222,185 |
Net loss | (75) | (7,117) |
Acquisition related costs | $ 3,100 | $ 3,100 |
ACQUISITIONS - Schedule of Tota
ACQUISITIONS - Schedule of Total Consideration Paid for Acquisition (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Aug. 31, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Consideration | ||||
Closing cash consideration | $ 35,714 | $ 2,966 | $ 0 | |
Recognized amounts of identifiable assets | ||||
Goodwill | $ 2,700 | $ 92,005 | $ 66,656 | |
Yoke | ||||
Consideration | ||||
Closing cash consideration | 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 |
ACQUISITIONS - Pro Forma Nonrec
ACQUISITIONS - Pro Forma Nonrecurring Adjustments (Details) - Three Square Market, Inc. - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Revenues | $ 251,979 | $ 222,185 |
Net loss | $ (75) | $ (7,117) |
FINANCE RECEIVABLES - Narrative
FINANCE RECEIVABLES - Narrative (Details) | 12 Months Ended |
Jun. 30, 2023 | |
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, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Receivables [Abstract] | |||
Current finance receivables, net | $ 6,668 | $ 6,721 | |
Finance receivables due after one year, net | 13,307 | 14,727 | |
Total finance receivables | 19,975 | 21,448 | |
Finance receivables, allowance | $ 2,098 | $ 760 | $ 1,109 |
FINANCE RECEIVABLES - Credit Ri
FINANCE RECEIVABLES - Credit Risk Profile Based on Payment Activity (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Up to 1 Year Ago | $ 6,929 | $ 7,560 |
Between 1 and 2 Years Ago | 6,802 | 5,141 |
Between 2 and 3 Years Ago | 3,628 | 2,933 |
Between 3 and 4 Years Ago | 1,665 | 2,985 |
Between 4 and 5 Years Ago | 1,174 | 3,483 |
More than 5 Years Ago | 1,875 | 106 |
Total finance receivables | 22,073 | 22,208 |
Current | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Up to 1 Year Ago | 6,595 | 7,451 |
Between 1 and 2 Years Ago | 6,505 | 5,047 |
Between 2 and 3 Years Ago | 3,304 | 2,758 |
Between 3 and 4 Years Ago | 1,306 | 2,593 |
Between 4 and 5 Years Ago | 846 | 2,807 |
More than 5 Years Ago | 829 | 103 |
Total finance receivables | 19,385 | 20,759 |
30 days and under | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Up to 1 Year Ago | 66 | 18 |
Between 1 and 2 Years Ago | 73 | 10 |
Between 2 and 3 Years Ago | 69 | 32 |
Between 3 and 4 Years Ago | 52 | 56 |
Between 4 and 5 Years Ago | 22 | 94 |
More than 5 Years Ago | 68 | 3 |
Total finance receivables | 350 | 213 |
31 - 60 days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Up to 1 Year Ago | 53 | 25 |
Between 1 and 2 Years Ago | 40 | 23 |
Between 2 and 3 Years Ago | 32 | 26 |
Between 3 and 4 Years Ago | 42 | 58 |
Between 4 and 5 Years Ago | 19 | 100 |
More than 5 Years Ago | 71 | 0 |
Total finance receivables | 257 | 232 |
61 - 90 days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Up to 1 Year Ago | 60 | 25 |
Between 1 and 2 Years Ago | 52 | 14 |
Between 2 and 3 Years Ago | 26 | 20 |
Between 3 and 4 Years Ago | 32 | 46 |
Between 4 and 5 Years Ago | 16 | 91 |
More than 5 Years Ago | 71 | 0 |
Total finance receivables | 257 | 196 |
Greater than 90 days | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Up to 1 Year Ago | 155 | 41 |
Between 1 and 2 Years Ago | 132 | 47 |
Between 2 and 3 Years Ago | 197 | 97 |
Between 3 and 4 Years Ago | 233 | 232 |
Between 4 and 5 Years Ago | 271 | 391 |
More than 5 Years Ago | 836 | 0 |
Total finance receivables | $ 1,824 | $ 808 |
FINANCE RECEIVABLES - Schedule
FINANCE RECEIVABLES - Schedule of Credit Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | $ 760 | $ 1,109 |
Provision for expected losses | 1,626 | 36 |
Write-offs | (288) | (385) |
Balance, end of period | $ 2,098 | $ 760 |
FINANCE RECEIVABLES - Summary o
FINANCE RECEIVABLES - Summary of Finance Receivables Fiscal Years (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 |
Receivables [Abstract] | |||
2024 | $ 7,956 | ||
2025 | 6,126 | ||
2026 | 4,833 | ||
2027 | 3,050 | ||
2028 | 1,077 | ||
Thereafter | 56 | ||
Total amounts to be collected | 23,098 | ||
Less: interest | (1,025) | ||
Less: allowance for expected credit losses | (2,098) | $ (760) | $ (1,109) |
Total finance receivables | $ 19,975 | $ 21,448 |
ACCOUNTS RECEIVABLE - Additiona
ACCOUNTS RECEIVABLE - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Accounts receivable, net | $ 30,162 | $ 37,695 |
Write-offs | 2,703 | $ 1,822 |
Greater than 90 days | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Write-offs | $ 1,100 | |
Largest Customers | Accounts Receivable | Customer Concentration Risk | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Concentration risk | 1% | 17% |
ACCOUNTS RECEIVABLE - Schedule
ACCOUNTS RECEIVABLE - Schedule of Rollforward of Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of period | $ 9,328 | $ 7,715 |
Provision for expected losses | 4,190 | 3,435 |
Write-offs | (2,703) | (1,822) |
Balance, end of period | $ 10,815 | $ 9,328 |
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, 2023 | Jun. 30, 2022 | |
Property, Plant and Equipment [Line Items] | ||
Useful life, rental program | 5 years | 5 years |
Property and equipment, cost, rental program, Cost | $ 28,398 | $ 25,242 |
Property, plant and equipment, gross, Cost | 63,130 | 46,602 |
Property and equipment used for rental program, Accumulated Depreciation | (23,221) | (22,914) |
Property, plant, and equipment, Accumulated Depreciation | (37,849) | (33,818) |
Net | 5,177 | 2,328 |
Property, plant, and equipment, Net | 25,281 | 12,784 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, excluding lessor asset under operating lease, before accumulated depreciation, Cost | 8,089 | 6,758 |
Property, plant, and equipment, excluding lessor asset under operating lease, Accumulated Depreciation | (7,443) | (6,404) |
Property, plant, and equipment, excluding lessor asset under operating lease, Net | 646 | 354 |
Internal-use software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, excluding lessor asset under operating lease, before accumulated depreciation, Cost | 24,294 | 12,787 |
Property, plant, and equipment, excluding lessor asset under operating lease, Accumulated Depreciation | (5,107) | (2,859) |
Property, plant, and equipment, excluding lessor asset under operating lease, Net | 19,187 | 9,928 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, excluding lessor asset under operating lease, before accumulated depreciation, Cost | 1,559 | 1,529 |
Property, plant, and equipment, excluding lessor asset under operating lease, Accumulated Depreciation | (1,474) | (1,396) |
Property, plant, and equipment, excluding lessor asset under operating lease, Net | 85 | 133 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant, and equipment, excluding lessor asset under operating lease, before accumulated depreciation, Cost | 790 | 286 |
Property, plant, and equipment, excluding lessor asset under operating lease, Accumulated Depreciation | (604) | (245) |
Property, plant, and equipment, excluding lessor asset under operating lease, Net | $ 186 | $ 41 |
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration] | Useful Life, Shorter of Lease Term or Asset Utility [Member] | Useful Life, Shorter of Lease Term or Asset Utility [Member] |
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, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Cost of sales | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 1.2 | $ 1 | $ 1.4 |
Operating expenses | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 2.6 | $ 1.1 | $ 1 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Summary of Amortizable Intangible Asset (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 | Aug. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, Gross | $ 47,063 | $ 32,173 | |
Amortizable intangible assets, Accumulated Amortization | (19,251) | (14,226) | |
Amortizable intangible assets, Net | 27,812 | 17,947 | |
Goodwill, Gross | 92,005 | 66,656 | |
Goodwill, Net | 92,005 | 66,656 | $ 2,700 |
Brand and tradenames | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, Gross | 2,161 | 1,705 | |
Amortizable intangible assets, Accumulated Amortization | (1,414) | (1,133) | |
Amortizable intangible assets, Net | $ 747 | $ 572 | |
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 | $ 20,188 | $ 11,129 | |
Amortizable intangible assets, Accumulated Amortization | (11,066) | (8,071) | |
Amortizable intangible assets, Net | $ 9,122 | $ 3,058 | |
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 | $ 24,714 | $ 19,339 | |
Amortizable intangible assets, Accumulated Amortization | (6,771) | (5,022) | |
Amortizable intangible assets, Net | $ 17,943 | $ 14,317 | |
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 ($) | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense of acquired intangible assets | $ 5,000,000 | $ 3,300,000 | $ 3,100,000 |
Weighted average useful life | 16 years 2 months 12 days | ||
Goodwill, impairment loss | $ 0 | $ 0 | $ 0 |
Brand and tradenames | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 2 years | ||
Developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 4 years 1 month 6 days | ||
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 10 years 1 month 6 days |
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, 2023 | Jun. 30, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2024 | $ 5,201 | |
2025 | 4,439 | |
2026 | 4,241 | |
2027 | 3,946 | |
2028 | 2,249 | |
Thereafter | 7,736 | |
Amortizable intangible assets, Net | $ 27,812 | $ 17,947 |
ACCRUED EXPENSES - Information
ACCRUED EXPENSES - Information Regarding Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Business Acquisition [Line Items] | ||
Accrued sales tax | $ 13,597 | $ 14,694 |
Accrued compensation and related sales commissions | 4,069 | 3,289 |
Operating lease liabilities - current | 1,266 | 1,538 |
Accrued professional fees | 4,196 | 4,200 |
Accrued other taxes and filing fees | 1,944 | 2,036 |
Accrued other | 762 | 1,397 |
Total accrued expenses | 26,276 | 28,154 |
Yoke | ||
Business Acquisition [Line Items] | ||
Contingent consideration | 0 | 1,000 |
Three Square Market, Inc. | ||
Business Acquisition [Line Items] | ||
Contingent consideration | $ 442 | $ 0 |
DEBT AND OTHER FINANCING ARRA_3
DEBT AND OTHER FINANCING ARRANGEMENTS - Debt and Other Financing Agreements (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Debt Instrument [Line Items] | ||
Long term debt | $ 38,613 | |
Less: unamortized issuance costs and debt discount | (183) | $ (261) |
Long-term debt | 38,430 | 14,622 |
Less: debt and other financing arrangements, current | (882) | (692) |
Debt and other financing arrangements, noncurrent | 37,548 | 13,930 |
Line of Credit | JPMorgan Credit Facility | ||
Debt Instrument [Line Items] | ||
Long term debt | 38,563 | 14,813 |
Other obligations | ||
Debt Instrument [Line Items] | ||
Long term debt | $ 50 | $ 70 |
DEBT AND OTHER FINANCING ARRA_4
DEBT AND OTHER FINANCING ARRANGEMENTS - Interest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Debt Instrument [Line Items] | |||
Other interest expense | $ 2 | $ 6 | $ 10 |
Total interest expense | 2,326 | 524 | 4,013 |
Line of Credit | |||
Debt Instrument [Line Items] | |||
Interest expense related to change in sales tax reserve | (326) | (386) | 218 |
Line of Credit | 2020 Antara Term Facility | Term Facility | |||
Debt Instrument [Line Items] | |||
Interest expense | 0 | 0 | 2,779 |
Line of Credit | JPMorgan Credit Facility | |||
Debt Instrument [Line Items] | |||
Interest expense | $ 2,650 | $ 904 | $ 1,006 |
DEBT AND OTHER FINANCING ARRA_5
DEBT AND OTHER FINANCING ARRANGEMENTS - JP Morgan Chase Bank Credit Agreement (Details) | 12 Months Ended | |||||
Dec. 01, 2022 USD ($) | Mar. 17, 2022 USD ($) covenant | Aug. 14, 2020 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Debt Instrument [Line Items] | ||||||
Proceeds from long-term debt | $ 25,000,000 | $ 738,000 | $ 14,550,000 | |||
Revolving Credit Facility | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Capitalized issuance costs | $ 300,000 | |||||
2020 Antara Term Facility | Term Facility | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 30,000,000 | |||||
JPMorgan Credit Facility | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Term | 4 years | |||||
Commitment fee | 0.50% | |||||
Total leverage ratio maximum | 3 | |||||
Number of financial covenants | covenant | 2 | |||||
JPMorgan Credit Facility | Line of Credit | Period One | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, increase | 0.25% | |||||
Adjusted quick ratio, maximum | 3 | |||||
JPMorgan Credit Facility | Line of Credit | Period Two | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, increase | 2% | |||||
Adjusted quick ratio, maximum | 4 | |||||
JPMorgan Credit Facility | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 5,000,000 | |||||
Term | 3 years | |||||
Interest rate, increase | 2% | |||||
Commitment fee | 0.50% | |||||
JPMorgan Credit Facility | Line of Credit | Period Two | ||||||
Debt Instrument [Line Items] | ||||||
Adjusted quick ratio, minimum | 3 | |||||
JPMorgan Credit Facility | Line of Credit | Period Three | ||||||
Debt Instrument [Line Items] | ||||||
Adjusted quick ratio, maximum | 3 | |||||
JPMorgan Credit Facility | Line of Credit | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Variable rate | 3.75% | |||||
JPMorgan Credit Facility | Revolving Credit Facility | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 5,000,000 | |||||
2021 JPMorgan Secured Term Facility | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate. during period | 9% | 4.40% | ||||
2021 JPMorgan Secured Term Facility | Term Facility | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 25,000,000 | $ 15,000,000 | ||||
Proceeds from long-term debt | $ 25,000,000 | |||||
2021 JPMorgan, First Amendment | Line of Credit | Period One | ||||||
Debt Instrument [Line Items] | ||||||
Adjusted quick ratio, minimum | 2.75 | |||||
2022 JPMorgan Revolving Credit Facility | Term Facility | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from revolving credit facility | 10,000,000 | |||||
2022 JPMorgan Revolving Credit Facility | Revolving Credit Facility | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 15,000,000 | |||||
Proceeds from revolving credit facility | $ 15,000,000 | |||||
2022 Secured Term Facility | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility increase | $ 10,000,000 | |||||
Minimum | JPMorgan Credit Facility | Line of Credit | Base Rate | Period One | ||||||
Debt Instrument [Line Items] | ||||||
Variable rate | 2.50% | |||||
Minimum | JPMorgan Credit Facility | Line of Credit | Base Rate | Period Two | ||||||
Debt Instrument [Line Items] | ||||||
Variable rate | 2.75% | |||||
Minimum | JPMorgan Credit Facility | Line of Credit | SOFR | Period One | ||||||
Debt Instrument [Line Items] | ||||||
Variable rate | 3.50% | |||||
Minimum | JPMorgan Credit Facility | Line of Credit | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Variable rate | 2.75% | |||||
Minimum | JPMorgan Credit Facility | Line of Credit | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Variable rate | 3.75% | |||||
Maximum | JPMorgan Credit Facility | Line of Credit | Base Rate | Period One | ||||||
Debt Instrument [Line Items] | ||||||
Variable rate | 3% | |||||
Maximum | JPMorgan Credit Facility | Line of Credit | SOFR | Period One | ||||||
Debt Instrument [Line Items] | ||||||
Variable rate | 4% | |||||
Maximum | JPMorgan Credit Facility | Line of Credit | SOFR | Period Two | ||||||
Debt Instrument [Line Items] | ||||||
Variable rate | 3.75% | |||||
Maximum | JPMorgan Credit Facility | Line of Credit | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Variable rate | 3.75% | |||||
Maximum | JPMorgan Credit Facility | Line of Credit | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Variable rate | 4.75% |
DEBT AND OTHER FINANCING ARRA_6
DEBT AND OTHER FINANCING ARRANGEMENTS - Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Debt Disclosure [Abstract] | ||
2024 | $ 958 | |
2025 | 1,333 | |
2026 | 36,322 | |
2027 | 0 | |
Principal amounts payable | 38,613 | |
Unamortized issuance costs | (183) | $ (261) |
Total | $ 38,430 | $ 14,622 |
SHAREHOLDER'S EQUITY AND PREF_3
SHAREHOLDER'S EQUITY AND PREFERRED STOCK - Additional Information (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) shares | Jun. 30, 2021 USD ($) | |
Class of Stock [Line Items] | |||
Common stock, shares authorized (in shares) | 640,000,000 | 640,000,000 | |
Common stock, shares issued (in shares) | 72,664,464 | 71,188,053 | |
Common stock, shares outstanding (in shares) | 72,664,464 | 71,188,053 | |
Convertible preferred stock, shares authorized (in shares) | 900,000 | 900,000 | |
Retirement of preferred stock, value | $ | $ 1,733 | ||
Repurchase of Series A Convertible Preferred Stock | $ | 2,151 | $ 0 | $ 0 |
Amount in excess of fair value of preferred stock | $ | $ 300 | ||
Liquidation price to be received by series A preferred stock holder for each outstanding share plus all cumulative unpaid dividends (in USD per share) | $ / shares | $ 10 | ||
Convertible Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized (in shares) | 1,800,000 | ||
Convertible preferred stock, shares authorized (in shares) | 900,000 | ||
Preferred stock, voting percentage | 0.1988 | ||
Series A preferred stock annual cumulative dividend price per share (in USD per share) | $ / shares | $ 1.50 | ||
Series A preferred stock, redemption price per share (in USD per share) | $ / shares | 11 | ||
Cumulative unpaid dividends converted into common shares (in USD per share) | $ / shares | $ 1,000 | ||
Preferred Class A | |||
Class of Stock [Line Items] | |||
Retirement of preferred stock (in shares) | 59,281 | ||
Retirement of preferred stock, value | $ | $ 2,450 | ||
Convertible Preferred Stock | |||
Class of Stock [Line Items] | |||
Repurchase of Series A Convertible Preferred Stock | $ | 420 | ||
Common Stock | |||
Class of Stock [Line Items] | |||
Repurchase of Series A Convertible Preferred Stock | $ | $ 1,730 |
SHAREHOLDER'S EQUITY AND PREF_4
SHAREHOLDER'S EQUITY AND PREFERRED STOCK - Preferred Stock Liquidation Preference (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Class of Stock [Line Items] | ||
Liquidation price (in USD per share) | $ 10 | |
Convertible Preferred Stock | ||
Class of Stock [Line Items] | ||
For shares outstanding at $10.00 per share | $ 3,858 | $ 4,451 |
Cumulative undeclared and unpaid dividends | 18,286 | 17,662 |
Preferred stock liquidation preference | $ 22,144 | $ 22,113 |
INCOME TAXES - Summary of Benef
INCOME TAXES - Summary of Benefit (Provision) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Current: | |||
Federal | $ 0 | $ 0 | $ 0 |
State | (92) | (179) | (328) |
Foreign | 0 | 0 | 0 |
Total current | (92) | (179) | (328) |
Deferred: | |||
Federal | (62) | (18) | (12) |
State | (27) | 11 | (30) |
Foreign | 0 | 0 | 0 |
Total deferred | (89) | (7) | (42) |
Total income tax provision | $ (181) | $ (186) | $ (370) |
INCOME TAXES - Components of Pr
INCOME TAXES - Components of Pre-Tax Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. income (loss) | $ 996 | $ (1,517) | $ (8,335) |
Other income (loss) | (182) | 0 | 0 |
Income (loss) before income taxes | $ 814 | $ (1,517) | $ (8,335) |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Effective Income Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory income tax rate | $ (171) | $ 319 | $ 1,648 |
Stock compensation | (688) | (184) | 168 |
Other permanent differences | (497) | (106) | 608 |
State income taxes, net of federal benefit | (296) | (275) | 116 |
Changes related to prior years | 51 | 0 | 0 |
Changes related to state tax rates | (2,455) | 0 | 0 |
Changes in valuation allowances | 3,942 | 184 | (2,927) |
Other | (67) | (124) | 17 |
Total income tax provision | $ (181) | $ (186) | $ (370) |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
U.S. federal statutory income tax rate | 21% | 21% | 21% | |
Federal operating loss carryforwards | $ 179,000 | $ 190,000 | ||
State operating loss carryforwards | 112,000 | 133,000 | ||
Unrecognized tax benefits | $ 689 | $ 572 | $ 444 | $ 207 |
INCOME TAXES - Summary of Net D
INCOME TAXES - Summary of Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 42,614 | $ 47,984 |
Asset reserves | 6,500 | 6,666 |
Deferred research and development | 2,856 | 1,503 |
Stock-based compensation | 3,798 | 3,416 |
Other | (978) | (143) |
Deferred tax assets, gross | 54,790 | 59,426 |
Deferred tax liabilities: | ||
Intangibles | (3,689) | (4,316) |
Deferred tax assets, net | 51,101 | 55,110 |
Valuation allowance | (51,376) | (55,296) |
Deferred tax liabilities | $ (275) | $ (186) |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefit Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Unrecognized Income Tax Benefits [Roll Forward] | |||
Balance at the beginning of the year | $ 572 | $ 444 | $ 207 |
Gross increases and decreases related to current period tax positions | 0 | 0 | 0 |
Gross increases related to prior period tax positions | 117 | 128 | 237 |
Balance at the end of the year | $ 689 | $ 572 | $ 444 |
STOCK BASED COMPENSATION - Summ
STOCK BASED COMPENSATION - Summary of Stock Based Compensation Plans (Details) | 12 Months Ended |
Jun. 30, 2023 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized (in shares) | 12,000,000 |
Conversions of Preferred Stock and cumulative Preferred Stock dividends (in shares) | 106,141 |
Issuance under Stock/Equity Incentive Plan (in shares) | 6,022,329 |
2014 Stock Option Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Issuance under Stock/Equity Incentive Plan (in shares) | 15,687 |
2015 Equity Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Issuance under Stock/Equity Incentive Plan (in shares) | 339,492 |
2018 Equity Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Issuance under Stock/Equity Incentive Plan (in shares) | 5,421,009 |
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) | 10,000,000 |
Former CEO | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Issuance of shares (in shares) | 140,000 |
STOCK BASED COMPENSATION - Addi
STOCK BASED COMPENSATION - 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, 2023 USD ($) plan $ / shares | Jun. 30, 2022 USD ($) $ / shares | Jun. 30, 2021 USD ($) $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of active stock based compensation plans | plan | 3 | |||||
Weighted average grant date fair value (in USD per share) | $ / shares | $ 2.89 | $ 5.12 | $ 4.92 | |||
Fair value of stock options vested | $ | $ 3,800 | $ 3,000 | $ 2,400 | |||
Expense (benefit) recognized for stock based compensation | $ | 4,737 | 6,248 | 9,075 | |||
Stock-based compensation expense, tax benefits recognized | $ | $ 1,400 | 600 | 2,400 | |||
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% | |||||
Expense (benefit) recognized for stock based compensation | $ | $ (800) | 1,000 | ||||
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] | ||||||
Expense (benefit) recognized for stock based compensation | $ | $ 0 | $ 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 - Su_2
STOCK BASED COMPENSATION - Summary of Valuation Assumption (Details) - Stock options | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility, minimum | 74.60% | 73.20% | 74.30% |
Expected volatility, maximum | 77.60% | 74.60% | 77.30% |
Expected life | 4 years 6 months | ||
Expected dividends | 0% | 0% | 0% |
Risk-free interest rate, minimum | 2.70% | 1% | 0.20% |
Risk-free interest rate, maximum | 4.10% | 2.90% | 0.70% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life | 4 years 4 months 24 days | 4 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 7 months 6 days |
STOCK BASED COMPENSATION - Su_3
STOCK BASED COMPENSATION - Summary of Options Outstanding (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2020 | |
Number of Options | ||||
Outstanding options, beginning of period (in shares) | 3,529,833 | 2,952,092 | 2,437,425 | |
Granted (in shares) | 1,720,000 | 904,500 | 755,000 | |
Exercised (in shares) | 0 | (121,248) | (74,667) | |
Forfeited (in shares) | (1,376,201) | (205,511) | (165,666) | |
Expired (in shares) | 0 | 0 | 0 | |
Outstanding options, end of period (in shares) | 3,873,632 | 3,529,833 | 2,952,092 | 2,437,425 |
Exercisable options, end of period (in shares) | 1,341,466 | 1,538,302 | 1,040,131 | |
Weighted Average Exercise Price | ||||
Outstanding options, beginning of period (in USD per share) | $ 7.41 | $ 6.97 | $ 6.43 | |
Granted (in USD per share) | 4.61 | 8.86 | 8.40 | |
Exercised (in USD per share) | 0 | 6.30 | 3.81 | |
Forfeited (in USD per share) | 6.86 | 8.09 | 6.90 | |
Expired (in USD per share) | 0 | 0 | 0 | |
Outstanding options, end of period (in USD per share) | 6.35 | 7.41 | 6.97 | $ 6.43 |
Exercisable options, end of period (in USD per share) | $ 7.26 | $ 6.79 | $ 6.52 | |
Weighted Average Remaining Contractual Term | ||||
Outstanding options | 5 years 1 month 6 days | 4 years 6 months | 5 years 7 months 6 days | 6 years 2 months 12 days |
Exercisable options, end of period | 3 years 10 months 24 days | 4 years 6 months | 5 years 1 month 6 days | |
Aggregate Intrinsic Value | ||||
Outstanding options, beginning balance | $ 194 | $ 14,419 | $ 1,411 | |
Exercised | 0 | (53) | (601) | |
Outstanding options, ending balance | 7,595 | 194 | 14,419 | $ 1,411 |
Exercisable options, end of period | $ 1,536 | $ 183 | $ 5,558 |
STOCK BASED COMPENSATION - Comp
STOCK BASED COMPENSATION - Company Nonvested Common Shares (Details) - $ / shares | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Shares | |||
Nonvested beginning balance (in shares) | 448,908 | 137,846 | 213,014 |
Granted (in shares) | 346,346 | 507,729 | 187,848 |
Vested (in shares) | (274,011) | (101,515) | (248,016) |
Forfeited (in shares) | (97,342) | (95,152) | (15,000) |
Nonvested ending balance (in shares) | 423,901 | 448,908 | 137,846 |
Weighted-Average Grant-Date Fair Value | |||
Nonvested beginning balance (in USD per share) | $ 7 | $ 9.57 | $ 6.50 |
Granted (in USD per share) | 5.41 | 7.33 | 10.33 |
Vested (in USD per share) | 5.96 | 10.34 | 7.71 |
Forfeited (in USD per share) | 8.27 | 8.89 | 6.28 |
Nonvested ending balance (in USD per share) | $ 6.08 | $ 7 | $ 9.57 |
STOCK BASED COMPENSATION - Co_2
STOCK BASED COMPENSATION - Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 4,737 | $ 6,248 | $ 9,075 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 2,967 | 4,424 | 7,806 |
Performance Based Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 1,770 | $ 1,824 | $ 1,269 |
STOCK BASED COMPENSATION - Unre
STOCK BASED COMPENSATION - Unrecognized Stock-based Compensation Expense (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2023 USD ($) | |
Stock options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized expense | $ 3,944 |
Weighted average recognition period | 1 year 9 months 18 days |
Performance Based Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized expense | $ 1,557 |
Weighted average recognition period | 1 year 3 months 18 days |
RETIREMENT PLAN (Details)
RETIREMENT PLAN (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
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 | $ 0.8 | $ 0.7 | $ 0.2 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2023 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Civil monetary penalty payment | $ 1.5 |
Purchase obligation | $ 0 |
RELATED PARTY DISCLOSURES (Deta
RELATED PARTY DISCLOSURES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |||
Cost of subscription and transaction fees | $ 0.4 | $ 1.1 | $ 0 |
Uncategorized Items - ctlp-2023
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |