Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2019 | Nov. 07, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | PARK CITY GROUP INC | |
Entity Central Index Key | 0000050471 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding | 19,741,233 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation State Country Code | NV | |
Entity File Number | 001-34941 | |
Title of 12b security | Common stock, par value $0.01 per share | |
Trading Symbol | PCYG | |
Security Exchange Name | NASDAQ |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 |
Current assets: | ||
Cash | $ 18,295,443 | $ 18,609,423 |
Receivables, net allowance for doubtful accounts of $418,985 and $153,220 at March 31, 2019 and June 30, 2018, respectively | 4,073,777 | 3,878,658 |
Contract asset - unbilled current portion | 3,024,821 | 3,023,694 |
Prepaid expense and other current assets | 472,068 | 1,037,099 |
Total current assets | 25,866,109 | 26,548,874 |
Property and equipment, net | 3,189,651 | 2,972,257 |
Other assets: | ||
Deposits, and other assets | 22,414 | 17,146 |
Contract asset - unbilled long-term portion | 1,488,310 | 1,659,110 |
Operating lease-right-of-use asset | 842,689 | 0 |
Customer relationships | 755,550 | 788,400 |
Goodwill | 20,883,886 | 20,883,886 |
Capitalized software costs, net | 46,349 | 70,864 |
Total other assets | 24,039,198 | 23,419,406 |
Total assets | 53,094,958 | 52,940,537 |
Current liabilities: | ||
Accounts payable | 441,096 | 530,294 |
Accrued liabilities | 1,179,289 | 1,399,368 |
Contract liability - deferred revenue | 1,955,425 | 1,917,787 |
Lines of credit | 4,660,000 | 4,660,000 |
Operating lease liability - current | 82,517 | 0 |
Current portion of notes payable | 298,866 | 295,168 |
Total current liabilities | 8,617,193 | 8,802,617 |
Long-term liabilities: | ||
Operating lease liability - less current portion | 760,172 | 0 |
Notes payable, less current portion | 844,636 | 920,754 |
Total liabilities | 10,222,001 | 9,723,371 |
Stockholders' equity: | ||
Common Stock, $0.01 par value, 50,000,000 shares authorized; 19,741,234 and 19,793,372 issued and outstanding at September 30, 2019 and June 30, 2019, respectively | 197,415 | 197,936 |
Additional paid-in capital | 76,533,138 | 76,908,566 |
Accumulated deficit | (33,865,974) | (33,897,714) |
Total stockholders' equity | 42,872,957 | 43,217,166 |
Total liabilities and stockholders' equity | 53,094,958 | 52,940,537 |
Series B Preferred Stock [Member] | ||
Stockholders' equity: | ||
Preferred Stock | 6,254 | 6,254 |
Series B1 Preferred Stock [Member] | ||
Stockholders' equity: | ||
Preferred Stock | $ 2,124 | $ 2,124 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2019 | Jun. 30, 2019 |
Stockholders' equity: | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, authorized | 30,000,000 | 30,000,000 |
Common stock, par value | $ .01 | $ .01 |
Common stock, authorized | 50,000,000 | 50,000,000 |
Common stock, issued | 19,741,234 | 19,793,372 |
Common stock, outstanding | 19,741,234 | 19,793,372 |
Series B Preferred Stock [Member] | ||
Stockholders' equity: | ||
Preferred stock, authorized | 700,000 | 700,000 |
Preferred stock, issued | 625,375 | 625,375 |
Preferred stock, outstanding | 625,375 | 625,375 |
Series B1 Preferred Stock [Member] | ||
Stockholders' equity: | ||
Preferred stock, authorized | 550,000 | 550,000 |
Preferred stock, issued | 212,402 | 212,402 |
Preferred stock, outstanding | 212,402 | 212,402 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||
Revenue | $ 4,800,084 | $ 5,941,994 |
Operating expenses: | ||
Cost of services and product support | 1,828,114 | 1,728,526 |
Sales and marketing | 1,414,863 | 1,908,024 |
General and administrative | 1,222,212 | 1,143,311 |
Depreciation and amortization | 193,677 | 145,375 |
Total operating expense | 4,658,866 | 4,925,236 |
Income from operations | 141,218 | 1,016,758 |
Other income (expense): | ||
Interest income | 82,731 | 35,124 |
Interest expense | (20,598) | (10,473) |
Income before income taxes | 203,351 | 1,041,409 |
(Provision) for income taxes | (25,000) | (75,000) |
Net income | 178,351 | 966,409 |
Dividends on preferred stock | (146,611) | (146,611) |
Net income applicable to common shareholders | $ 31,740 | $ 819,798 |
Weighted average shares, basic | 19,811,000 | 19,786,000 |
Weighted average shares, diluted | 20,122,000 | 20,363,000 |
Basic income per share | $ 0 | $ 0.04 |
Diluted income per share | $ 0 | $ 0.04 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash Flows from Operating Activities: | ||
Net income | $ 178,351 | $ 966,409 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 193,677 | 145,376 |
Stock compensation expense | 119,567 | 95,688 |
Bad debt expense | 125,000 | 100,000 |
(Increase) decrease in: | ||
Accounts receivables | (321,246) | 1,730,526 |
Long-term receivables, prepaid and other assets | 730,563 | (1,326,272) |
Right-of-use asset | (842,689) | 0 |
(Decrease) increase in: | ||
Accounts payable | (89,198) | (550,914) |
Accrued liabilities | (261,758) | 666,002 |
Lease liabilities | 842,689 | 0 |
Deferred revenue | 37,638 | (220,023) |
Net cash provided by operating activities | 712,594 | 1,606,792 |
Cash Flows from Investing Activities: | ||
Purchase of property and equipment | (353,706) | (1,492) |
Net cash used in investing activities | (353,706) | (1,492) |
Cash Flows from Financing Activities: | ||
Net increase in lines of credit | 0 | 1,430,000 |
Common Stock buyback/retirement | (517,360) | 0 |
Proceeds from employee stock plan | 63,523 | 0 |
Dividends paid | (146,611) | 0 |
Payments on notes payable and capital leases | (72,420) | (1,476,543) |
Net cash used in financing activities | (672,868) | (46,543) |
Net increase in cash and cash equivalents | (313,980) | 1,558,757 |
Cash and cash equivalents at beginning of period | 18,609,423 | 14,892,439 |
Cash and cash equivalents at end of period | 18,295,443 | 16,451,196 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 79,073 | 98,039 |
Cash paid for interest | 20,598 | 8,274 |
Cash paid for operating leases | 30,600 | 0 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Common stock to pay accrued liabilities | 77,888 | 134,546 |
Dividends accrued on preferred stock | $ 146,611 | $ 146,611 |
Condensed Statement of Stockhol
Condensed Statement of Stockholders Equity (Unaudited) - USD ($) | Series B Preferred Stock | Series B-1 Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Beginning balance, shares at Jun. 30, 2018 | 625,375 | 212,402 | 19,773,549 | |||
Beginning balance, amount at Jun. 30, 2018 | $ 6,254 | $ 2,124 | $ 197,738 | $ 76,711,887 | $ (37,213,677) | $ 39,704,326 |
Accrued compensation, shares | 6,592 | |||||
Accrued compensation, amount | $ 66 | 51,602 | 51,668 | |||
Employee stock plan, shares | 12,333 | |||||
Employee stock plan, amount | $ 123 | 82,755 | 82,878 | |||
Net income | 966,409 | 966,409 | ||||
Ending balance, shares at Sep. 30, 2018 | 625,375 | 212,402 | 19,792,474 | |||
Ending balance, amount at Sep. 30, 2018 | $ 6,254 | $ 2,124 | $ 197,927 | 76,846,244 | (36,393,879) | 40,658,670 |
Beginning balance, shares at Jun. 30, 2019 | 625,375 | 212,402 | 19,793,372 | |||
Beginning balance, amount at Jun. 30, 2019 | $ 6,254 | $ 2,124 | $ 197,936 | 76,908,566 | (33,897,714) | 43,217,166 |
Accrued compensation, shares | 14,542 | |||||
Accrued compensation, amount | $ 145 | 77,742 | 77,887 | |||
Employee stock plan, shares | 13,274 | |||||
Employee stock plan, amount | $ 133 | 63,390 | 63,523 | |||
Stock buyback, shares | (79,954) | |||||
Stock buyback, amount | $ (799) | (516,560) | (517,359) | |||
Preferred dividends-declared | (146,611) | (146,611) | ||||
Net income | 178,351 | 178,351 | ||||
Ending balance, shares at Sep. 30, 2019 | 625,375 | 212,402 | 19,741,234 | |||
Ending balance, amount at Sep. 30, 2019 | $ 6,254 | $ 2,124 | $ 197,415 | $ 76,533,138 | $ (33,865,974) | $ 42,872,957 |
OVERVIEW OF OPERATIONS AND BASI
OVERVIEW OF OPERATIONS AND BASIS FOR PRESENTATION | 3 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
OVERVIEW OF OPERATIONS AND BASIS FOR PRESENTATION | Overview Park City Group, Inc. (“ We us our Company SaaS” B2B The Company’s services are grouped in three application suites: (i) ReposiTrak MarketPlace, encompassing the Company’s supplier discovery and B2B e-commerce solutions, which helps the Company’s customers find new suppliers, (ii) ReposiTrak Compliance and Food Safety solutions, which help the Company’s customers vet suppliers to mitigate the risk of doing business with these suppliers, and (iii) ReposiTrak’s Supply Chain solutions, which help the Company’s customers to more efficiently manage their various transactions with their suppliers. The Company’s supply chain and MarketPlace services provide its customers with greater flexibility in sourcing products by enabling them to choose new suppliers and integrate them into their supply chain faster and more cost effectively, and it helps them to more efficiently manage these relationships, enhancing revenue while lowering working capital, labor costs and waste. The Company’s food safety and compliance solutions help reduce a company’s potential regulatory, legal, and criminal risk from its supply chain partners by providing a way for them to ensure these suppliers are compliant with food safety regulations, such as the Food Safety Modernization Act of 2011 (“ FSMA The Company’s services are delivered though proprietary software products designed, developed, marketed and supported by the Company. These products provide visibility and facilitate improved business processes among all key constituents in the supply chain, starting with the retailer and moving backwards to suppliers and eventually to raw material providers. The Company provides cloud-based applications and services that address e-commerce, supply chain, food safety and compliance activities. The principal customers for the Company’s products are household name multi-store food retail chains and their suppliers, branded food manufacturers, food wholesalers and distributors, and other food service businesses. The Company has a hub and spoke business model. The Company is typically engaged by retailers and wholesalers (“ Hubs Spokes The Company is incorporated in the state of Nevada and has three principal subsidiaries: PC Group, Inc., a Utah corporation (98.76% owned); Park City Group, Inc., a Delaware corporation (100% owned); and ReposiTrak, Inc., a Utah corporation (100% owned). All intercompany transactions and balances have been eliminated in the Company’s consolidated financial statements, which contain the operating results of the operations of Park City Group, Inc. (Delaware) and ReposiTrak, Inc. Park City Group, Inc. (Nevada) has no business operations separate from the operations conducted through its subsidiaries. The Company’s principal executive offices are located at 5282 South Commerce Drive, Suite D292, Murray, Utah 84107. Its telephone number is (435) 645-2000. Its website address is www.parkcitygroup.com, and ReposiTrak’s website address is www.repositrak.com. Recent Developments In July 2019, we deployed InApp Pop Up and Online Chat. This application provides account managers and sales staff with two additional real time means to facilitate farming of the network to cross sell with new and existing customers. In August 2019, we released our new Out of Stock Management Solution (OOS). Eliminating out-of-stocks remains a critical challenge for food retailers as consumers turn to online retailers when their local store is out of a sought-after item. Previously, retailers had no viable solution to address this challenge. Our OOS is the industry’s first solution to address Direct Store Delivery out-of-stocks which enables retailers to retain customers and increase revenues. In September 2019, we released the “Automated Buy Process.” This connection platform allows suppliers to sign up for compliance service, select the appropriate tier, and purchase the monthly Tier 2 subscription in real time. This is anticipated to expedite supplier onbfoarding and facilitate faster payment. Basis of Financial Statement Presentation The interim financial information of the Company as of September 30, 2019 and for the three months ended September 30, 2019 is unaudited, and the balance sheet as of June 30, 2019 is derived from audited financial statements. The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial statements. Accordingly, they omit or condense notes and certain other information normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles. The accounting policies followed for quarterly financial reporting conform with the accounting policies disclosed in the Notes to Financial Statements included in our Annual Report on Form 10-K for the year ended June 30, 2019. In the opinion of management, all adjustments necessary for a fair presentation of the financial information for the interim periods reported have been made. All such adjustments are of a normal recurring nature. The results of operations for the three months ended September 30, 2019 are not necessarily indicative of the results that can be expected for the fiscal year ending June 30, 2020. The unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended June 30, 2019. Effective July 1, 2019, the Company adopted the requirements of Accounting Standards Update No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"), as discussed further in Note 5. All amounts and disclosures set forth in this Quarterly Report on Form 10-Q have been updated to comply with this new standard with results for reporting periods beginning after July 1, 2019 presented under ASU 2016-02, while prior period amounts and disclosures are not adjusted and continue to be reported under the accounting standards in effect for the prior period. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | Principles of Consolidation The financial statements presented herein reflect the consolidated financial position of Park City Group, Inc. and our subsidiaries. All inter-company transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that materially affect the amounts reported in the consolidated financial statements. Actual results could differ from these estimates. The methods, estimates, and judgments the Company uses in applying its most critical accounting policies have a significant impact on the results it reports in its financial statements. The Securities and Exchange Commission has defined the most critical accounting policies as those that are most important to the portrayal of the Company’s financial condition and results and require the Company to make its most difficult and subjective judgments, often because of the need to make estimates of matters that are inherently uncertain. Based on this definition, the Company’s most critical accounting policies include: revenue recognition, goodwill, other long-lived asset valuations, income taxes, stock-based compensation, and capitalization of software development costs. Adoption of ASU 2016-02 “Leases (Topic 842)” In February 2016, the FASB issued ASU 2016-02 “Leases (Topic 842)”. Under the new guidance, lessees will be required to recognize for all leases (with the exception of short-term leases) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Effective July 1, 2019, the Company adopted the requirements of Accounting Standards Update No. 2016-02, "Leases (Topic 842)" (" ASU 2016-02 The Company adopted the requirements of ASU 2016-02 utilizing the modified retrospective method of transition to identified leases as of July 1, 2019 (the “effective date”). The recognition of additional operating lease liabilities was $82,517 for the current portion and $760,172 for the long-term portion and corresponding operating ROU assets were recorded in the amount of $842,689. This represents the operating lease existing as of the effective date which has a lease term of three years with the option for two additional 3- year terms. On June 21, 2018 the Company entered into an office lease at 5252 South Commerce Drive Suite D292, Murray, Utah 84107, providing for the lease of approximately 9,800 square feet, commencing on March 1, 2019. The monthly rent is $10,200. The initial term of the lease is three years. The Company has the option of renewing for an additional two three-year terms. Revenue Recognition We recognize revenue as we transfer control of deliverables (products, solutions and services) to our customers in an amount reflecting the consideration to which we expect to be entitled. To recognize revenue, we apply the following five step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. We account for a contract based on the terms and conditions the parties agree to, the contract has commercial substance and collectability of consideration is probable. The Company applies judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience. We may enter into arrangements that consist of multiple performance obligations. Such arrangements may include any combination of our deliverables. To the extent a contract includes multiple promised deliverables, we apply judgment to determine whether promised deliverables are capable of being distinct and are distinct in the context of the contract. If these criteria are not met, the promised deliverables are accounted for as a combined performance obligation. For arrangements with multiple distinct performance obligations, we allocate consideration among the performance obligations based on their relative standalone selling price. Standalone selling price is the price at which we would sell a promised good or service separately to the customer. When not directly observable, we typically estimate standalone selling price by using the expected cost plus a margin approach. We typically establish a standalone selling price range for our deliverables, which is reassessed on a periodic basis or when facts and circumstances change. For performance obligations where control is transferred over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the deliverables to be provided. Revenue related to fixed-price contracts for application development and systems integration services, consulting or other technology services is recognized as the service is performed using the output method, under which the total value of revenue is recognized based on each contract’s deliverable(s) as they are completed and when value is transferred to a customer. Revenue related to fixed-price application maintenance, testing and business process services is recognized based on our right to invoice for services performed for contracts in which the invoicing is representative of the value being delivered, in accordance with the practical expedient in ASC 606-10-55-18. If our invoicing is not consistent with the value delivered, revenue is recognized as the service is performed based on the method described above. The output method measures the results achieved and value transferred to a customer, which is updated as the project progresses to reflect the latest available information; such estimates and changes in estimates involve the use of judgment. The cumulative impact of any revision in estimates is reflected in the financial reporting period in which the change in estimate becomes known and any anticipated losses on contracts are recognized immediately. Revenue related to fixed-price hosting and infrastructure services is recognized based on our right to invoice for services performed for contracts in which the invoicing is representative of the value being delivered, in accordance with the practical expedient in ASC 606-10-55-18. If our invoicing is not consistent with value delivered, revenue is recognized on a straight-line basis unless revenue is earned and obligations are fulfilled in a different pattern. The revenue recognition method applied to the types of contracts described above provides the most faithful depiction of performance towards satisfaction of our performance obligations. Revenue related to our software license arrangements that do not require significant modification or customization of the underlying software is recognized when the software is delivered as control is transferred at a point in time. For software license arrangements that require significant functionality enhancements or modification of the software, revenue for the software license and related services is recognized as the services are performed in accordance with the methods described above. In software hosting arrangements, the rights provided to the customer, such as ownership of a license, contract termination provisions and the feasibility of the client to operate the software, are considered in determining whether the arrangement includes a license or a service. Revenue related to software maintenance and support is generally recognized on a straight-line basis over the contract period. Revenue related to transaction-based or volume-based contracts is recognized over the period the services are provided in a manner that corresponds with the value transferred to the customer to-date relative to the remaining services to be provided. From time-to-time, we may enter into arrangements with third party suppliers to resell products or services. In such cases, we evaluate whether we are the principal (i.e. report revenue on a gross basis) or agent (i.e. report revenue on a net basis). In doing so, we first evaluate whether we control the good or service before it is transferred to the customer. If we control the good or service before it is transferred to the customer, we are the principal; if not, we are the agent. Determining whether we control the good or service before it is transferred to the customer may require judgment. We provide customers with assurance that the related deliverable will function as the parties intended because it complies with agreed-upon specifications. General updates or patch fixes are not considered an additional performance obligation in the contract. Variable consideration is estimated using either the sum of probability weighted amounts in a range of possible consideration amounts (expected value), or the single most likely amount in a range of possible consideration amounts (most likely amount), depending on which method better predicts the amount of consideration to which we may be entitled. We include in the transaction price variable consideration only to the extent it is probable that a significant reversal of revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price may involve judgment and are based largely on an assessment of our anticipated performance and all information that is reasonably available to us. We assess the timing of the transfer of goods or services to the customer as compared to the timing of payments to determine whether a significant financing component exists. As a practical expedient, we do not assess the existence of a significant financing component when the difference between payment and transfer of deliverables is a year or less. If the difference in timing arises for reasons other than the provision of finance to either the customer or us, no financing component is deemed to exist. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our services, not to receive or provide financing from or to customers. We do not consider set up or transition fees paid upfront by our customers to represent a financing component, as such fees are required to encourage customer commitment to the project and protect us from early termination of the contract. Trade Accounts Receivable and Contract Balances We classify our right to consideration in exchange for deliverables as either a receivable or a contract asset (unbilled receivable). A receivable is a right to consideration that is unconditional (i.e. only the passage of time is required before payment is due). For example, we recognize a receivable for revenue related to our transaction or volume-based contracts when earned regardless of whether amounts have been billed. We present such receivables in trade accounts receivable, net in our consolidated statements of financial position at their net estimated realizable value. We maintain an allowance for doubtful accounts to provide for the estimated number of receivables that may not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables, judgment, and other applicable factors. A contract asset is a right to consideration that is conditional upon factors other than the passage of time. Contract assets are presented in current and other assets in our consolidated balance sheets and primarily relate to unbilled amounts on fixed-price contracts utilizing the output method of revenue recognition. The table below shows movements in contract assets: Contract assets Balance – June 30, 2019 $ 4,682,799 Revenue recognized during the period but not billed 425,500 Amounts reclassified to accounts receivable (595,168 ) Other - Balance – September 30, 2019 $ 4,513,131 (1) (1) Contract asset balances for September 30, 2019 include a current and a long-term contract asset, $3,024,821, and $1,488,310, respectively. The table below shows movements in the deferred revenue balances (current and noncurrent) for the period: Contract liability Balance –June 30, 2019 $ 1,917,787 Amounts billed but not recognized as revenue (399,431 ) Revenue recognized related to the opening balance of deferred revenue 437,069 Other - Balance – September 30, 2019 $ 1,955,425 Our contract assets and liabilities are reported in a net position on a contract by contract basis at the end of each reporting period. The difference between the opening and closing balances of our contract assets and deferred revenue primarily results from the timing difference between our performance obligations and the customer’s payment. We receive payments from customers based on the terms established in our contracts, which may vary generally by contract type. Disaggregation of Revenue The table below presents disaggregated revenue from contracts with customers by customer geography and contract-type. We believe this disaggregation best depicts the nature, amount, timing and uncertainty of our revenue and cash flows that may be affected by industry, market and other economic factors: For the Three Months Ended September 30, 2019 Geography Subscription & support Professional services Transaction based Total North America $ 4,027,564 $ 57,340 $ 702,209 4,787,113 International 12,971 - - 12,971 Total $ 4,040,535 $ 57,340 $ 702,209 $ 4,800,084 Earnings Per Share Basic net income per share of Common Stock (“ Basic EPS Diluted EPS The following table presents the components of the computation of basic and diluted earnings per share for the periods indicated: Three Months Ended September 30, 2019 2018 Numerator Net income applicable to Common Stockholders $ 31,740 $ 819,798 Denominator Weighted average Common Stock outstanding, basic 19,811,000 19,786,000 Warrants to purchase Common stock 311,000 577,000 Weighted average Common Stock outstanding, diluted 20,122,000 20,363,000 Net income per share Basic $ 0.00 $ 0.04 Diluted $ 0.00 $ 0.04 Reclassifications Certain prior year amounts have been reclassified to conform with the current year’s presentation. These reclassifications have no impact on the previously reported results. |
EQUITY
EQUITY | 3 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
EQUITY | Restricted Stock Units Restricted Stock Units Weighted Average Grant Date Fair Value ($/share) Outstanding at June 30, 2019 866,274 $ 5.47 Granted - Vested and issued (548 ) 9.13 Forfeited (13,038 ) 7.67 Outstanding at September 30, 2019 852,688 $ 5.44 As of September 30, 2019, there were 3,401 stock units outstanding that had vested but for which shares of Common Stock had not yet been issued pursuant to the terms of the agreement. As of September 30, 2019, there was approximately $4.6 million of unrecognized stock-based compensation expense under our equity compensation plans, which is expected to be recognized on a straight-line basis over a weighted average period of 4.17 years. Warrants The following table summarizes information about warrants outstanding and exercisable at September 30, 2019: Warrants Outstanding Warrants Exercisable at September 30, 2019 at September 30, 2019 Range of exercise prices Warrants Number outstanding Weighted average remaining contractual life (years) Weighted average exercise price Number exercisable Weighted average exercise price $ 4.00 1,085,068 .35 $ 4.00 1,085,068 $ 4.00 $ 10.00 23,737 .32 $ 10.00 23,737 $ 10.00 1,108,805 .35 $ 1,108,805 $ 4.13 Preferred Stock The Company’s articles of incorporation, as amended, currently authorize the issuance of up to 30,000,000 shares of “blank check” preferred stock with designations, rights, and preferences as may be determined from time-to-time by the Company’s Board of Directors (the “ Board Series B Preferred Series B-1 Preferred PIK Shares The Company does business with some of the largest retailers and wholesalers in the world. Management believes the Series B-1 Preferred favorably impacts the Company’s overall cost of capital in that it is: (i) perpetual and, therefore, an equity instrument that positively impacts the Company’s coverage ratios, (ii) possesses a below market dividend rate relative to similar instruments, (iii) offers the flexibility of a paid-in-kind (“ PIK Section 4 of the Company’s First Amended and Restated Certificate of Designation of the Relative Rights, Powers and Preferences of the Series B-1 Preferred Stock, as amended (the “ Series B-1 COD Redemption Notice In July 2017, the Company issued 20,000 shares of Series B-1 Preferred in satisfaction of an accrued bonus payable to the Company’s Chief Executive Officer. On February 6, 2018, the Company delivered a Redemption Notice to certain holders of the Series B-1 Preferred notifying the holders of the Company’s intent to redeem certain shares of Series B-1 Preferred on February 7, 2018 (the “ Redemption Date Series B-1 Redemption |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | During the three months ended September 30, 2019, the Company continued to be a party to a Service Agreement with Fields Management, Inc. (“ FMI Randall K. Fields and Robert W. Allen each beneficially own Series B-1 Preferred. As a result of the Series B-1 Redemption, the Company paid an aggregate of $889,159 and $110,831 to Messrs. Fields and Allen, respectively, in consideration for the redemption of 83,099 and 10,358 shares of Series B-1 Preferred. See Note 3. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | In August 2018, the FASB issued ASU 2018-15 – Intangibles – Goodwill and Other Internal-Use Software (Subtopic 350-40) – Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. The amendments in this update apply to an entity who is a customer in a hosting arrangement accounted for as a service contract. The update requires a customer in a hosting arrangement to capitalize certain implementation costs. Costs associated with the application development stage of the implementation should be capitalized and costs with the other stages should be expensed. For instance, costs for training and data conversion should be expensed. The capitalized implementation costs should be expensed over the term of the hosting arrangement, which is the noncancelable period plus periods covered by an option to extend if the customer is reasonably certain to exercise the option. Impairment of the capitalized costs should be considered similar to other intangibles. The effective date of this update is effective for annual reporting periods beginning after December 15, 2019 for public entities and after December 15, 2020 for all other entities with early adoption permitted. The Company is a customer in a hosting arrangement and may enter into new arrangements in the future. The Company will apply the guidance for implementation costs of new hosting arrangements once adopted. In August 2018, the FASB issued ASU 2018-13 “Fair Value Measurement (Topic 820) Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU eliminates, amends, and adds disclosure requirements for fair value measurements. The new standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Although we are still evaluating the impact of this new standard, we do not believe that the adoption will materially impact our Condensed Consolidated Financial Statements and related disclosures. In June 2018, the FASB issued ASU 2018-07 – Compensation – Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting. The amendments in this update expand the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. Prior to this update, equity-based payments to non-employees was accounted for under Subtopic 505-50 resulting in significant differences between the accounting for share-based payments to non-employees as compared to employees. One of the most significant changes is that non-employee share-based awards (classified as equity awards) may be measured at grant-date fair value and not have to be continually revalued until the service/goods are rendered. The update also indicates that share-based awards related to financing and awards granted to a customer in conjunction with selling goods or services are not included in Topic 718. This standard is effective for interim and annual reporting periods beginning after December 15, 2018 for public entities and December 15, 2019 for all other entities. Early adoption is permitted, but no earlier than an entity’s adoption date of Topic 606. The Company anticipates this update will impact its financials for any non-employee grants and will implement the guidance for non-employee grants accordingly’. In January 2017, the FASB issued ASU 2017-04 “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which amends and simplifies the accounting standard for goodwill impairment. The new standard removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount a reporting unit’s carrying value exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. The new standard is effective for annual and any interim impairment tests for periods beginning after December 15, 2019. We are currently assessing the implication of our adoption as well as the potential impact that the standard will have on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 “Leases (Topic 842).” Under the new guidance, lessees will be required to recognize for all leases (with the exception of short-term leases) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Effective July 1, 2019, the Company adopted the requirements of Accounting Standards Update No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"). All amounts and disclosures set forth in this Quarterly Report on Form 10-Q have been updated to comply with this new standard with results for reporting periods beginning after July 1, 2019 presented under ASU 2016-02, while prior period amounts and disclosures are not adjusted and continue to be reported under the accounting standards in effect for the prior period. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | In accordance with the Subsequent Events Topic of the FASB ASC 855, we have evaluated subsequent events, through the filing date and noted no subsequent events that are reasonably likely to impact the Company’s financial statements. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The financial statements presented herein reflect the consolidated financial position of Park City Group, Inc. and our subsidiaries. All inter-company transactions and balances have been eliminated in consolidation. |
Use of Estimates | The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that materially affect the amounts reported in the consolidated financial statements. Actual results could differ from these estimates. The methods, estimates, and judgments the Company uses in applying its most critical accounting policies have a significant impact on the results it reports in its financial statements. The Securities and Exchange Commission has defined the most critical accounting policies as those that are most important to the portrayal of the Company’s financial condition and results and require the Company to make its most difficult and subjective judgments, often because of the need to make estimates of matters that are inherently uncertain. Based on this definition, the Company’s most critical accounting policies include: revenue recognition, goodwill, other long-lived asset valuations, income taxes, stock-based compensation, and capitalization of software development costs. |
Adoption of ASU 2016-02 (Leases) | In February 2016, the FASB issued ASU 2016-02 “Leases (Topic 842)”. Under the new guidance, lessees will be required to recognize for all leases (with the exception of short-term leases) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Effective July 1, 2019, the Company adopted the requirements of Accounting Standards Update No. 2016-02, "Leases (Topic 842)" (" ASU 2016-02 The Company adopted the requirements of ASU 2016-02 utilizing the modified retrospective method of transition to identified leases as of July 1, 2019 (the “effective date”). The recognition of additional operating lease liabilities was $82,517 for the current portion and $760,172 for the long-term portion and corresponding operating ROU assets were recorded in the amount of $842,689. This represents the operating lease existing as of the effective date which has a lease term of three years with the option for two additional 3- year terms. On June 21, 2018 the Company entered into an office lease at 5252 South Commerce Drive Suite D292, Murray, Utah 84107, providing for the lease of approximately 9,800 square feet, commencing on March 1, 2019. The monthly rent is $10,200. The initial term of the lease is three years. The Company has the option of renewing for an additional two three-year terms. |
Revenue Recognition | We recognize revenue as we transfer control of deliverables (products, solutions and services) to our customers in an amount reflecting the consideration to which we expect to be entitled. To recognize revenue, we apply the following five step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. We account for a contract based on the terms and conditions the parties agree to, the contract has commercial substance and collectability of consideration is probable. The Company applies judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience. We may enter into arrangements that consist of multiple performance obligations. Such arrangements may include any combination of our deliverables. To the extent a contract includes multiple promised deliverables, we apply judgment to determine whether promised deliverables are capable of being distinct and are distinct in the context of the contract. If these criteria are not met, the promised deliverables are accounted for as a combined performance obligation. For arrangements with multiple distinct performance obligations, we allocate consideration among the performance obligations based on their relative standalone selling price. Standalone selling price is the price at which we would sell a promised good or service separately to the customer. When not directly observable, we typically estimate standalone selling price by using the expected cost plus a margin approach. We typically establish a standalone selling price range for our deliverables, which is reassessed on a periodic basis or when facts and circumstances change. For performance obligations where control is transferred over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the deliverables to be provided. Revenue related to fixed-price contracts for application development and systems integration services, consulting or other technology services is recognized as the service is performed using the output method, under which the total value of revenue is recognized based on each contract’s deliverable(s) as they are completed and when value is transferred to a customer. Revenue related to fixed-price application maintenance, testing and business process services is recognized based on our right to invoice for services performed for contracts in which the invoicing is representative of the value being delivered, in accordance with the practical expedient in ASC 606-10-55-18. If our invoicing is not consistent with the value delivered, revenue is recognized as the service is performed based on the method described above. The output method measures the results achieved and value transferred to a customer, which is updated as the project progresses to reflect the latest available information; such estimates and changes in estimates involve the use of judgment. The cumulative impact of any revision in estimates is reflected in the financial reporting period in which the change in estimate becomes known and any anticipated losses on contracts are recognized immediately. Revenue related to fixed-price hosting and infrastructure services is recognized based on our right to invoice for services performed for contracts in which the invoicing is representative of the value being delivered, in accordance with the practical expedient in ASC 606-10-55-18. If our invoicing is not consistent with value delivered, revenue is recognized on a straight-line basis unless revenue is earned and obligations are fulfilled in a different pattern. The revenue recognition method applied to the types of contracts described above provides the most faithful depiction of performance towards satisfaction of our performance obligations. Revenue related to our software license arrangements that do not require significant modification or customization of the underlying software is recognized when the software is delivered as control is transferred at a point in time. For software license arrangements that require significant functionality enhancements or modification of the software, revenue for the software license and related services is recognized as the services are performed in accordance with the methods described above. In software hosting arrangements, the rights provided to the customer, such as ownership of a license, contract termination provisions and the feasibility of the client to operate the software, are considered in determining whether the arrangement includes a license or a service. Revenue related to software maintenance and support is generally recognized on a straight-line basis over the contract period. Revenue related to transaction-based or volume-based contracts is recognized over the period the services are provided in a manner that corresponds with the value transferred to the customer to-date relative to the remaining services to be provided. From time to time, we may enter into arrangements with third party suppliers to resell products or services. In such cases, we evaluate whether we are the principal (i.e. report revenue on a gross basis) or agent (i.e. report revenue on a net basis). In doing so, we first evaluate whether we control the good or service before it is transferred to the customer. If we control the good or service before it is transferred to the customer, we are the principal; if not, we are the agent. Determining whether we control the good or service before it is transferred to the customer may require judgment. We provide customers with assurance that the related deliverable will function as the parties intended because it complies with agreed-upon specifications. General updates or patch fixes are not considered an additional performance obligation in the contract. Variable consideration is estimated using either the sum of probability weighted amounts in a range of possible consideration amounts (expected value), or the single most likely amount in a range of possible consideration amounts (most likely amount), depending on which method better predicts the amount of consideration to which we may be entitled. We include in the transaction price variable consideration only to the extent it is probable that a significant reversal of revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price may involve judgment and are based largely on an assessment of our anticipated performance and all information that is reasonably available to us. We assess the timing of the transfer of goods or services to the customer as compared to the timing of payments to determine whether a significant financing component exists. As a practical expedient, we do not assess the existence of a significant financing component when the difference between payment and transfer of deliverables is a year or less. If the difference in timing arises for reasons other than the provision of finance to either the customer or us, no financing component is deemed to exist. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our services, not to receive or provide financing from or to customers. We do not consider set up or transition fees paid upfront by our customers to represent a financing component, as such fees are required to encourage customer commitment to the project and protect us from early termination of the contract. |
Trade Accounts Receivable and Contract Balances | We classify our right to consideration in exchange for deliverables as either a receivable or a contract asset (unbilled receivable). A receivable is a right to consideration that is unconditional (i.e. only the passage of time is required before payment is due). For example, we recognize a receivable for revenue related to our transaction or volume-based contracts when earned regardless of whether amounts have been billed. We present such receivables in trade accounts receivable, net in our consolidated statements of financial position at their net estimated realizable value. We maintain an allowance for doubtful accounts to provide for the estimated number of receivables that may not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables, judgment, and other applicable factors. A contract asset is a right to consideration that is conditional upon factors other than the passage of time. Contract assets are presented in current and other assets in our consolidated balance sheets and primarily relate to unbilled amounts on fixed-price contracts utilizing the output method of revenue recognition. The table below shows movements in contract assets: Contract assets Balance – June 30, 2019 $ 4,682,799 Revenue recognized during the period but not billed 425,500 Amounts reclassified to accounts receivable (595,168 ) Other - Balance – September 30, 2019 $ 4,513,131 (1) (1) Contract asset balances for September 30, 2019 include a current and a long-term contract asset, $3,024,821, and $1,488,310, respectively. The table below shows movements in the deferred revenue balances (current and noncurrent) for the period: Contract liability Balance –June 30, 2019 $ 1,917,787 Amounts billed but not recognized as revenue (399,431 ) Revenue recognized related to the opening balance of deferred revenue 437,069 Other - Balance – September 30, 2019 $ 1,955,425 Our contract assets and liabilities are reported in a net position on a contract by contract basis at the end of each reporting period. The difference between the opening and closing balances of our contract assets and deferred revenue primarily results from the timing difference between our performance obligations and the customer’s payment. We receive payments from customers based on the terms established in our contracts, which may vary generally by contract type. |
Disaggregation of Revenue | The table below presents disaggregated revenue from contracts with customers by customer geography and contract-type. We believe this disaggregation best depicts the nature, amount, timing and uncertainty of our revenue and cash flows that may be affected by industry, market and other economic factors: For the Three Months Ended September 30, 2019 Geography Subscription & support Professional services Transaction based Total North America $ 4,027,564 $ 57,340 $ 702,209 4,787,113 International 12,971 - - 12,971 Total $ 4,040,535 $ 57,340 $ 702,209 $ 4,800,084 |
Earnings Per Share | Basic net income per common share (“ Basic EPS Diluted EPS The following table presents the components of the computation of basic and diluted earnings per share for the periods indicated: Three Months Ended September 30, 2019 2018 Numerator Net income applicable to Common Stockholders $ 31,740 $ 819,798 Denominator Weighted average Common Stock outstanding, basic 19,811,000 19,786,000 Warrants to purchase Common stock 311,000 577,000 Weighted average Common Stock outstanding, diluted 20,122,000 20,363,000 Net income per share Basic $ 0.00 $ 0.04 Diluted $ 0.00 $ 0.04 |
Reclassifications | Certain prior year amounts have been reclassified to conform with the current year’s presentation. These reclassifications have no impact on the previously reported results. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Contract assets and liabilities | Contract assets Balance – June 30, 2019 $ 4,682,799 Revenue recognized during the period but not billed 425,500 Amounts reclassified to accounts receivable (595,168 ) Other Balance – September 30, 2019 $ 4,513,131 (1) (1) Contract asset balances for September 30, 2019 include a current and a long-term contract asset, $3,024,821, and $1,488,310, respectively. |
Disaggregation of revenues | Contract liability Balance –June 30, 2019 $ 1,917,787 Amounts billed but not recognized as revenue (399,431 ) Revenue recognized related to the opening balance of deferred revenue 437,069 Other - Balance – September 30, 2019 $ 1,955,425 For the Three Months Ended September 30, 2019 Geography Subscription & support Professional services Transaction based Total North America $ 4,027,564 $ 57,340 $ 702,209 4,787,113 International 12,971 - - 12,971 Total $ 4,040,535 $ 57,340 $ 702,209 $ 4,800,084 |
Earnings per share | Three Months Ended September 30, 2019 2018 Numerator Net income applicable to Common Stockholders $ 31,740 $ 819,798 Denominator Weighted average Common Stock outstanding, basic 19,811,000 19,786,000 Warrants to purchase Common stock 311,000 577,000 Weighted average Common Stock outstanding, diluted 20,122,000 20,363,000 Net income per share Basic $ 0.00 $ 0.04 Diluted $ 0.00 $ 0.04 |
EQUITY (Tables)
EQUITY (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Restricted stock | Restricted Stock Units Restricted Stock Units Weighted Average Grant Date Fair Value ($/share) Outstanding at June 30, 2019 866,274 $ 5.47 Granted - Vested and issued (548 ) 9.13 Forfeited (13,038 ) 7.67 Outstanding at September 30, 2019 852,688 $ 5.44 |
Warrants | Warrants Outstanding Warrants Exercisable at September 30, 2019 at September 30, 2019 Range of exercise prices Warrants Number outstanding Weighted average remaining contractual life (years) Weighted average exercise price Number exercisable Weighted average exercise price $ 4.00 1,085,068 .35 $ 4.00 1,085,068 $ 4.00 $ 10.00 23,737 .32 $ 10.00 23,737 $ 10.00 1,108,805 .35 $ 1,108,805 $ 4.13 |
OVERVIEW OF OPERATIONS AND BA_2
OVERVIEW OF OPERATIONS AND BASIS FOR PRESENTATION (Details Narrative) | Sep. 30, 2019 |
PC Group Inc. [Member] | |
Ownership interest by parent | 98.76% |
Park City Group Inc. [Member] | |
Ownership interest by parent | 100.00% |
ReposiTrak [Member] | |
Ownership interest by parent | 100.00% |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Details) | 3 Months Ended | |
Sep. 30, 2019USD ($) | ||
Accounting Policies [Abstract] | ||
Contract assets, beginning | $ 4,682,799 | |
Revenue recognized during the period but not billed | 425,500 | |
Amounts reclassified to accounts receivable | (595,168) | |
Other | 0 | |
Contract assets, ending | 4,513,131 | [1] |
Contract liability, beginning | 1,917,787 | |
Amounts billed but not recognized as revenue | (399,431) | |
Revenues recognized related to the opening balance of deferred revenue | 437,069 | |
Other | 0 | |
Contract liability, ending | $ 1,955,425 | |
[1] | Contract asset balances for September 30, 2019 include a current and a long-term contract asset, $3,024,821, and $1,488,310, respectively. |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Details 1) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue | $ 4,800,084 | $ 5,941,994 |
Subscription & support | ||
Revenue | 4,040,535 | |
Professional services | ||
Revenue | 57,340 | |
Transaction based | ||
Revenue | 702,209 | |
North America | ||
Revenue | 4,787,113 | |
North America | Subscription & support | ||
Revenue | 4,027,564 | |
North America | Professional services | ||
Revenue | 57,340 | |
North America | Transaction based | ||
Revenue | 702,209 | |
International | ||
Revenue | 12,971 | |
International | Subscription & support | ||
Revenue | 12,971 | |
International | Professional services | ||
Revenue | 0 | |
International | Transaction based | ||
Revenue | $ 0 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($) | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Accounting Policies [Abstract] | ||
Net income applicable to common shareholders | $ 31,740 | $ 819,798 |
Weighted average common shares outstanding, basic | 19,811,000 | 19,786,000 |
Warrants to purchase common stock | 311,000 | 577,000 |
Weighted average common shares outstanding, diluted | 20,122,000 | 20,363,000 |
Net income per share, basic | $ 0 | $ 0.04 |
Net income per share, diluted | $ 0 | $ 0.04 |
EQUITY (Details)
EQUITY (Details) - Restricted Stock [Member] | 3 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Restricted stock units | |
Outstanding, beginning of period | 866,274 |
Granted | 0 |
Vested and issued | (548) |
Forfeited | (13,038) |
Outstanding, end of period | 852,688 |
Outstanding, beginning of period | $ / shares | $ 5.47 |
Vested and issued | $ / shares | 9.13 |
Forfeited | $ / shares | 7.67 |
Outstanding, end of period | $ / shares | $ 5.44 |
EQUITY (Details 1)
EQUITY (Details 1) - Warrant [Member] | 3 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Outstanding at end of period, shares | 1,108,805 |
Weighted average remaining contractual life (years), shares outstanding | 4 months 6 days |
Exercisable at end of period, shares | 1,108,805 |
Weighted average exercise price, shares exercisable | $ / shares | $ 4.13 |
$4.00 [Member] | |
Outstanding at end of period, shares | 1,085,068 |
Weighted average remaining contractual life (years), shares outstanding | 4 months 6 days |
Weighted average exercise price, shares outstanding | $ / shares | $ 4 |
Exercisable at end of period, shares | 1,085,068 |
Weighted average exercise price, shares exercisable | $ / shares | $ 4 |
$10.00 [Member] | |
Outstanding at end of period, shares | 23,737 |
Weighted average remaining contractual life (years), shares outstanding | 3 months 25 days |
Weighted average exercise price, shares outstanding | $ / shares | $ 10 |
Exercisable at end of period, shares | 23,737 |
Weighted average exercise price, shares exercisable | $ / shares | $ 10 |
EQUITY (Details Narrative)
EQUITY (Details Narrative) | 3 Months Ended |
Sep. 30, 2019USD ($) | |
Equity [Abstract] | |
Unrecognized stock-based compensation expense | $ 4,600,000 |
Unrecognized stock-based compensation expense, recognition period | 4 years 2 months 1 day |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | Sep. 30, 2019 | Jun. 30, 2019 |
FMI [Member] | ||
Due to related parties | $ 0 | $ 316,539 |