Company profile

Ticker
USAT, USATP
Exchange
Website
CEO
Stephen P. Herbert
Employees
Incorporated
Location
Fiscal year end
Former names
USA ENTERTAINMENT CENTER INC
SEC CIK
IRS number
232679963

USAT stock data

(
)

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

11 Sep 20
30 Sep 20
30 Jun 21

News

Quarter (USD) Mar 20 Dec 19 Sep 19 Mar 19
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Jun 20 Jun 19 Jun 17 Jun 16
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from USA earnings reports.

Date Owner Security Transaction Code 10b5-1 $Price #Shares $Value #Remaining
17 Sep 20 Scott Matthew Stewart NQSO Common Stock Grant Aquire A No 8.58 125,000 1.07M 125,000
10 Aug 20 Jackson Roger Wayne NQSO Common Stock Grant Aquire A No 7.1 400,000 2.84M 400,000
5 Aug 20 Eugene Cavanaugh Common Stock Grant Aquire A No 0 3,000 0 8,000
22.8% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 11 13 -15.4%
Opened positions 1 1
Closed positions 3 11 -72.7%
Increased positions 4 5 -20.0%
Reduced positions 2 3 -33.3%
13F shares
Current Prev Q Change
Total value 68.39M 110.2M -37.9%
Total shares 14.87M 14.83M +0.3%
Total puts 0 0
Total calls 0 1.09M EXIT
Total put/call ratio
Largest owners
Shares Value Change
Hudson Executive Capital 10.39M $47.77M 0.0%
Emerald Mutual Fund Advisers Trust 1.14M $5.22M 0.0%
Emerald Advisers 1.12M $5.13M -0.9%
First Washington 910.9K $4.19M -9.1%
P.a.w. Capital 600K $2.76M +9.1%
S Squared Technology 458.43K $2.11M +5.9%
Uniplan Investment Counsel 184.74K $849K +17.8%
Waldron Private Wealth 60K $276K +500.0%
Parametric Portfolio Associates 18.75K $86K 0.0%
NVWM 200 $1K NEW
Largest transactions
Shares Bought/sold Change
First Washington 910.9K -91.26K -9.1%
P.a.w. Capital 600K +50K +9.1%
Waldron Private Wealth 60K +50K +500.0%
Uniplan Investment Counsel 184.74K +27.89K +17.8%
S Squared Technology 458.43K +25.4K +5.9%
Emerald Advisers 1.12M -10.68K -0.9%
AMAL Amalgamated Bank 0 -10.37K EXIT
NVWM 200 +200 NEW
BNP Paribas Arbitrage 0 -65 EXIT
Proequities 0 0

Financial report summary

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Risks
  • We have a history of losses since inception and if we continue to incur losses, the price of our shares can be expected to fall.
  • We may require additional financing or find it necessary to raise capital to sustain our operations and without it we may not be able to achieve our business plan.
  • Failure to comply with any of the financial covenants under the Company’s credit agreement could result in an event of default which may accelerate our outstanding indebtedness or other obligations and have a material adverse impact on our business, liquidity position and financial position.
  • The loss of one or more of our key customers could significantly reduce our revenues, results of operations, and net income.
  • We depend on our key personnel and, if they leave us, or if we are unable to attract highly skilled personnel, our business could be adversely affected.
  • Our dependence on proprietary technology and limited ability to protect our intellectual property may adversely affect our ability to compete.
  • If we are not able to implement successful enhancements and new features for our products and services, our business could be materially and adversely affected.
  • The termination of our relationships with certain third-party suppliers upon whom we rely for services that are critical to our products could adversely affect our business and delay achievement of our business plan.
  • Substantially all of the network service contracts with our customers are terminable for any or no reason upon thirty to sixty days’ advance notice.
  • Security is vital to our customers and therefore breaches in the security of transactions involving our products or services could adversely affect our reputation and results of operations.
  • We rely on other card payment processors, and if they fail or no longer agree to provide their services, our customer relationships could be adversely affected, and we could lose business.
  • Disruptions at other participants in the financial system could prevent us from delivering our cashless payment services.
  • We are subject to laws and regulations that affect the products, services and markets in which we operate. Failure by us to comply with these laws or regulations would have an adverse effect on our business, financial condition, or results of operations.
  • Increases in card association and debit network interchange fees could increase our operating costs or otherwise adversely affect our operations.
  • Any increase in chargebacks not paid by our customers may adversely affect our results of operations, financial condition and cash flows.
  • Failure to maintain effective systems of internal control over financial reporting and disclosure controls and procedures could cause a loss of confidence in our financial reporting and adversely affect the trading price of our common stock.
  • The accounting review of our previously issued financial statements and the audits of prior fiscal years have been time-consuming and expensive, has resulted in the filing of class action lawsuits and the receipt of derivative demand letters, and may result in additional expense and/or litigation.
  • We and certain of our former officers and directors have been named in shareholder class action lawsuits, which could require significant additional management time and attention, result in significant additional legal expenses or result in government enforcement actions.
  • Matters relating to or arising from the restatement and the 2019 Investigation, including adverse publicity and potential concerns from our customers could continue to have an adverse effect on our business and financial condition.
  • We may not be entitled to forgiveness of our recently received Paycheck Protection Program Loan, and our application for the Paycheck Protection Program Loan could in the future be determined to have been impermissible.
  • Our ability to commercially manage the transition from the 3G network could lead to competitive disadvantage in the marketplace.
  • Continued dependence on external providers and advisors could limit our ability to decrease operating expenses.
  • We may not successfully implement our go-to-market strategy which may adversely affect growth and profitability.
  • Our securities were delisted from Nasdaq and are now quoted on the OTC Markets. There can be no assurance that our securities will be relisted, or once relisted, our securities might not remain listed.
  • Upon certain fundamental transactions involving the Company, such as a merger or sale of substantially all of our assets, we may be required to distribute the liquidation preference then due to the holders of our Series A Preferred Stock which would reduce the amount of the distributions otherwise to be made to the holders of our common stock in connection with such transactions.
  • Director and officer liability is limited.
  • If securities and/or industry analysts fail to continue publishing research about our business, if they change their recommendations adversely, or if our results of operations do not meet their expectations, our stock price and trading volume could decline.
Management Discussion
  • Certain prior period amounts have been reclassified to conform with current year presentation. Additionally, in connection with the preparation of the condensed consolidated financial statements for the three months ended December 31, 2019, the Company identified certain adjustments that are required to be made to its fiscal year 2019 annual financial statements which resulted in a $2.1 million decrease in net loss for the year ended June 30, 2019. The Company does not believe these adjustments are material to the previously issued financial statements.
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