Overview of the Business and Basis of Presentation (Tables)

12 Months Ended

Jun. 30, 2020

Schedule of reconciliation of the numerators and denominators of basic and diluted net income (loss) per share

The following table presents a reconciliation of the numerators and denominators of basic and diluted net income per share for the periods indicated:

	Fiscal Year Ended June 30,
	2020	2019
Basic weighted-average number of shares outstanding	8,772,969	8,941,413
Effect of dilutive securities:
Restricted stock	59,550	17,049
Diluted weighted-average number of shares outstanding	8,832,519	8,958,462

Schedule of financial assets and liabilities that were measured at fair value on a recurring basis

Our financial assets and liabilities that were measured at fair value on a recurring basis as of June 30, 2020 and 2019 are as follows:

			Quoted
	As of		Prices in		Observable		Unobservable
	June 30, 2020		Active Markets		Inputs		Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
	(Amounts in thousands)
Cash	$	4,473	$	4,473	$	—	$	—
Money market funds		4,863		4,863		—		—
Cash and cash equivalents	$	9,336	$	9,336	$	—	$	—
Common stock and common stock options	$	4,489	$	4,489	$	—	$	—
Preferred stock		2,883		—		—		2,883
Equity investments	$	7,372	$	4,489	$	—	$	2,883
Corporate debt	$	21,429	$	—	$	21,429	$	—
Available-for-sale investments	$	21,429	$	—	$	21,429	$	—

			Quoted
	As of		Prices in		Observable		Unobservable
	June 30, 2019		Active Markets		Inputs		Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
	(Amounts in thousands)
Cash	$	5,223	$	5,223	$	—	$	—
Money market funds		2,860		2,860		—		—
Cash and cash equivalents	$	8,083	$	8,083	$	—	$	—
Common stock and common stock warrants		4,522		4,522		—		—
Preferred stock		2,883		—		—		2,883
Equity investments	$	7,405	$	4,522	$	—	$	2,883
Corporate debt	$	20,393	$	—	$	20,393	$	—
Available-for-sale investments	$	20,393	$	—	$	20,393	$	—
Contingent consideration - cash earn-out	$	2,890	$	—	$	—	$	2,890
Contingent consideration - warrants		200		—		—		200
Liabilities	$	3,090	$	—	$	—	$	3,090

Schedule of the Company's assets and obligations measured at fair value using Level 3 inputs

The following table provides a reconciliation of the beginning and ending balances for the Company’s assets and obligations measured at fair value using Level 3 inputs:

	Assets		Obligations
	Preferred		Contingent
	Stock		Consideration
	(Amounts in thousands)
Balance at June 30, 2019	$	2,883	$	3,090
Fair value adjustment to contingent consideration (Note 6)		—		(3,090)
Balance at June 30, 2020	$	2,883	$	—

Schedule of valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a recurring basis

The following table shows the valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a recurring basis as of June 30, 2020 ($ amounts in thousands):

				Unobservable	Range of
	Fair Value		Valuation Methodology	Inputs	Inputs
Equity securities, fair value
Preferred stock	$	2,883	cost, or observable price changes	not applicable	not applicable
LMCS Business Unit
Contingent cash payments	$	—	Monte Carlo simulations	discount rate	10.5	%
				expected volatility	25.0	%
				drift rate	0.2	%
				credit spread	7.0	%
Contingent warrants	$	—	Black-Scholes, Monte Carlo simulations	expected term	6.25	years
				expected volatility	25.0	%
				risk free rate	0.4	%
				dividend yield	0.0	%

The following table shows the valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a recurring basis as of June 30, 2019 ($ amounts in thousands):

				Unobservable	Range of
	Fair Value		Valuation Methodology	Inputs	Inputs
Equity securities, fair value
Preferred stock	$	2,883	cost, or observable price changes	not applicable	not applicable
Contingent consideration
Contingent cash payments	$	2,890	Monte Carlo simulations	discount rate	12.0	%
				expected volatility	25.0	%
				drift rate	1.7	%
				credit spread	8.0	%
Contingent warrants	$	200	Black-Scholes, Monte Carlo simulations	expected term	6.25	years
				expected volatility	30.0	%
				risk free rate	2.6	%
				dividend yield	0.0	%

Lm Capital Solutions Llc [Member]

Schedule of valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a recurring basis

As further described in Note 6 to these financial statements, we recorded impairment charges of $780,000 and $562,000 against the goodwill and definite-lived assets of our LMCS business unit, respectively, and also reduced the fair value of this business unit’s contingent cash payments and contingent warrants payable to Old LuxeMark from $3,090,000 to zero during our fiscal year ended June 30, 2020. The following table shows the valuation methodology for Level3 assets and liabilities measured at fair value as of June 30, 2020 ($ amounts in thousands):

	Fair			Unobservable	Range of
	Value		Valuation Methodology	Inputs	Inputs
LMCS Business Unit
Goodwill	$	480	Discounted cash flows	Weighted average cost of capital	27.0	%
Investor/funder relationships	$	1,640	Multi-period excess earnings	Discount rate	28.0	%
Right of use leased asset	$	320	Discounted cash flows	Discount rate	8.5	%
Trade name	$	130	Relief from royalty	Royalty rate	1.5	%
Non-compete agreements	$	100	Discounted cash flows	Discount rate	28.0	%