mamsg20170630

Consolidated Balance Sheets

(In thousands, except per share data)

	June 30,			June 30,
	2017			2016

ASSETS
Current Assets
Cash and cash equivalents	$	1,260		$	491
Accounts receivable, net of allowance of $332 and $359, respectively		4,644			4,627
Inventories		384			221
Prepaid expenses and other current assets		1,433			1,495
Income tax receivable		168			535
Total Current Assets		7,889			7,369

Property and Equipment, Net		511			581

Other Assets
Goodwill		8,191			8,363
Intangible assets, net		639			739
Software development costs, net		7,634			5,234
Deferred income taxes		1,679			-
Other long-term assets		109			68
TOTAL ASSETS	$	26,652		$	22,354

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	1,334		$	1,618
Accrued expenses and other liabilities		2,165			1,811
Payroll and other taxes		815			1,188
Current portion of long-term debt		1,734			1,879
Current portion of deferred revenue		1,477			939
Sales tax payable		761			750
Income tax payable		506			1
Total Current Liabilities		8,792			8,186

Long-Term Liabilities
Deferred revenue, net of current portion		534			273
Deferred income taxes		682			535
Long-term debt, net of current portion		6,386			7,808
Other long-term liabilities		583			533
Total Liabilities		16,977			17,335

Commitments and Contingencies

Stockholders' Equity
Preferred stock: Par value $0.0001 per share; 2,000 shares authorized, none issued and outstanding		-			-
Common stock: Par value $0.0001 per share; 18,000 shares authorized, 12,313 shares issued and 12,308 shares outstanding at June 30, 2017, and 13,199 shares issued and 12,410 shares outstanding at June 30, 2016		1			1
Additional paid-in capital		14,180			16,162
Accumulated other comprehensive loss		(3,283	)		(2,985	)
Accumulated deficit		(1,207	)		(5,785	)
Treasury stock at cost, 5 shares at June 30, 2017 and 790 shares at June 30, 2016		(16	)		(2,374	)
Total Stockholders' Equity		9,675			5,019
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	26,652		$	22,354

The Accompanying Notes are an Integral Part of these Consolidated Financial Statements.

F-3

Consolidated Statements of Comprehensive Income

(In thousands, except per share data)

	For the Years Ended
	June 30,
	2017			2016
Net revenues	$	31,596		$	32,212
Cost of revenues		14,193			14,598
Gross Profit		17,403			17,614

Operating Expenses
Research and development		3,791			3,777
Sales and marketing		3,659			4,009
General and administrative		5,505			5,658
Depreciation and amortization		231			370
Total Operating Expenses		13,186			13,814

Operating Income		4,217			3,800

Other Income (Expense)
Interest expense, net		(559	)		(276	)
Gain on settlement of liabilities		-			217
Total other expense, net		(559	)		(59	)

Income before provision (benefit) for income taxes		3,658			3,741

Provision (benefit) for income taxes		(920	)		189

Net Income	$	4,578		$	3,552

Earnings per share attributed to common stockholders - basic	$	0.39		$	0.29
Earnings per share attributed to common stockholders - diluted	$	0.39		$	0.28
Weighted average common shares outstanding – basic		11,732			12,314
Weighted average common shares outstanding – diluted		11,786			12,490

Net Income	$	4,578		$	3,552
Foreign currency translation loss		(298	)		(1,744	)
Total Comprehensive Income	$	4,280		$	1,808

The Accompanying Notes are an Integral Part of these Consolidated Financial Statements.

F-4

Consolidated Statements of Stockholders’ Equity

(In thousands)

	Preferred Stock				Common Stock						Additional Paid-in			Treasury Stock						Accumulated Other Comprehensive			Accumulated
	Shares		Amount		Shares			Amount			Capital			Shares			Amount			Loss			Deficit			Total
Balance July 1, 2015		-	$	-		15,027		$	2		$	31,186			(760	)	$	(2,213	)	$	(1,241	)	$	(9,337	)	$	18,397
Common stock issued as compensation – Includes amortization of unvested shares (See Note 8)		-		-		233			-			434			-			-			-			-			434
Shares surrendered for taxes				-		(61	)		-			(341	)		-			-			-			-			(341	)
Repurchase of common stock for treasury		-		-		-			-			-			(30	)		(161	)		-			-			(161	)
Repurchase of common stock in tender offer		-		-		(2,000	)		(1	)		(15,117	)		-			-			-			-			(15,118	)
Foreign currency translation		-		-		-			-			-			-			-			(1,744	)		-			(1,744	)
Net income		-		-		-			-			-			-			-			-			3,552			3,552
Balance June 30, 2016		-	$	-		13,199		$	1		$	16,162			(790	)	$	(2,374	)	$	(2,985	)	$	(5,785	)	$	5,019
Common stock issued as compensation – Includes amortization of unvested shares (See Note 8)		-		-		68			-			510			-			-			-			-			510
Forfeiture of restricted stock		-		-		(187	)		-			-			-			-			-			-			-
Common stock surrendered to pay for tax withholding		-		-		(26	)		-			(150	)		-			-			-			-			(150	)
Common stock issued for options exercised		-		-		44			-			16			-			-			-			-			16
Retirement of treasury stock		-		-		(785	)		-			(2,358	)		785			2,358			-			-			-
Foreign currency translation		-		-		-			-			-			-			-			(298	)		-			(298	)
Net income		-		-		-			-			-			-			-			-			4,578			4,578
Balance June 30, 2017		-	$	-		12,313		$	1		$	14,180			(5	)	$	(16	)	$	(3,283	)	$	(1,207	)	$	9,675

The Accompanying Notes are an Integral Part of these Consolidated Financial Statements.

F-5

Consolidated Statements of Cash Flows

(In thousands)

	For the Years Ended
	June 30,
	2017			2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	4,578		$	3,552
Adjustments to reconcile net income to net cash provided by operating activities:
Bad debt expense		283			257
Depreciation and amortization		537			648
Amortization of debt discount and debt issuance costs		139			32
Deferred income taxes		(1,523	)		359
Stock-based compensation expense		375			383

Changes in assets and liabilities:
Accounts receivable		(386	)		(881	)
Inventories		(169	)		(70	)
Prepaid expenses and other assets		(6	)		42
Income tax receivable		352			(535	)
Accounts payable		(264	)		(215	)
Accrued expenses and other liabilities		514			(988	)
Income tax payable		593			-
Payroll and other taxes		(314	)		183
Deferred revenue		816			478
NET CASH PROVIDED BY OPERATING ACTIVITIES		5,525			3,245

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment		(96	)		(207	)
Capitalized software development costs		(2,729	)		(2,759	)
Business acquisition, net of cash acquired		-			(453	)
NET CASH USED IN INVESTING ACTIVITIES		(2,825	)		(3,419	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchase of common stock for treasury		-			(161	)
Repurchase of common stock		-			(15,000	)
Common stock surrendered to pay for tax withholding		(150	)		-
Payment for acquisition of debt		(144	)		(123	)
Payment of fees for repurchase of common stock		-			(118	)
Proceeds from long-term debt		9,519			10,729
Repayment of long-term debt		(11,081	)		(950	)
Proceeds from exercise of stock options		16			-
NET CASH USED IN FINANCING ACTIVITIES		(1,840	)		(5,623	)

Effect of exchange rate changes		(91	)		(505	)
Net change in cash and cash equivalents		769			(6,302	)
Cash and cash equivalents at beginning of year		491			6,793
Cash and cash equivalents at end of year	$	1,260		$	491

The Accompanying Notes are an Integral Part of these Consolidated Financial Statements.

F-6

MAM SOFTWARE GROUP, INC.

Consolidated Statements of Cash Flows (Continued)

(In thousands)

	For the Years Ended
	June 30,
	2017		2016
Supplemental disclosures of cash flow information
Cash paid during the year for:
Interest	$	413	$	221
Income taxes	$	11	$	665

Supplemental disclosures of non-cash investing and financing activities:

Issuance of common stock in settlement of accrued liabilities	$	154	$	93
Retirement of treasury stock	$	2,358		-
Common stock surrendered for payment of taxes	$	-	$	341

The Accompanying Notes are an Integral Part of these Consolidated Financial Statements.

F-7

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2017 and 2016

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

MAM Software Group, Inc. ("MAM" or the "Company") is a leading provider of integrated information management solutions and services and a leading provider of cloud-based software solutions for the automotive aftermarket sector. The Company conducts its businesses through wholly owned subsidiaries with operations in Europe and North America. MAM Software Ltd. (“MAM Ltd.”) is based in Tankersley, Barnsley, United Kingdom (“UK”), Origin Software Solutions, Ltd. (“Origin”) is based in the UK (MAM Ltd. and Origin are collectively referred to as “MAM UK”), and MAM Software, Inc. (“MAM NA”) is based in the United States of America ("US") in Blue Bell, Pennsylvania.

Principles of Consolidation

The consolidated financial statements of the Company include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in the consolidated financial statements.

Concentrations of Credit Risk

The Company has no significant off-balance-sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements.

Cash and Cash Equivalents

In the US, the Company maintains cash balances at financial institutions that are insured by the Federal Deposit Insurance Corporation up to $250,000. At times deposits held with financial institutions in the US may exceed the $250,000 limit.

In the UK, the Company maintains cash balances at financial institutions that are insured by the Financial Services Compensation Scheme up to 85,000GBP. At times deposits held with financial institutions in the UK may exceed the 85,000GBP limit.

The Company maintains its cash accounts at financial institutions which it believes to be credit worthy. The Company considers all highly liquid debt instruments purchased with original maturities of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes.

Customers

The Company performs periodic evaluations of its customers and maintains allowances for potential credit losses as deemed necessary. The Company generally does not require collateral to secure its accounts receivable. Credit risk is managed by discontinuing sales to customers who are delinquent. The Company estimates credit losses and returns based on management’s evaluation of historical experience and current industry trends. Although the Company expects to collect amounts due, actual collections may differ from the estimated amounts.

No customers accounted for more than 10% of the Company’s revenues for each of the years ended June 30, 2017 and 2016. No customers accounted for more than 10% of the Company’s accounts receivable at June 30, 2017 and 2016.

Segment Reporting

The Company operates in one reportable segment. Though the Company has two operational segments (MAM UK and MAM NA), the Company evaluated these segments in accordance with ASC 280-10-50, Segment Reporting, and determined that the segments have the same economic characteristics, are similar in the following areas and can therefore be aggregated into one reportable segment:

1.	The products and services are software and professional services
2.	The products are produced through professional services
3.	The customers for these products are primarily for the automotive aftermarket
4.	The method to distribute these products are via software that the customer can host locally or the Company will host
5.	They both operate in a non-regulatory environment

F-8

Geographic Concentrations

The Company conducts business in the US and Canada (US and Canada are collectively referred to as the “NA Market”), and the UK and Ireland (UK and Ireland are collectively referred to as the “UK Market”). For customers headquartered in their respective countries, the Company derived approximately 63% of its revenues from the UK, 35% from the US, 1% from Ireland, and 1% from Canada during the year ended June 30, 2017, compared to 70% of its revenues from the UK, 28% from the US, 1% from Ireland, and 1% from Canada during the year ended June 30, 2016.

At June 30, 2017, the Company maintained 76% of its net property and equipment in the UK and the remaining 24% in the US. At June 30, 2016, the Company maintained 79% of its net property and equipment in the UK and the remaining 21% in the US.

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the US requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates made by the Company’s management include, but are not limited to, the collectability of accounts receivable, the realizability of inventories, the determination of the fair value of acquired intangible assets, the recoverability of goodwill and other long-lived assets, valuation of deferred tax assets and liabilities and the estimated fair value of stock options, warrants and shares issued for non-cash consideration. Actual results could materially differ from those estimates.

Fair Value of Financial Instruments

The Company’s financial instruments consist principally of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, and other liabilities, and long-term debt. Financial assets and liabilities that are remeasured and reported at fair value at each reporting period are classified and disclosed in one of the following three categories:

• Level 1 – Fair value based on quoted prices in active markets for identical assets or liabilities.

• Level 2 – Fair value based on significant directly observable data (other than Level 1 quoted prices) or significant indirectly observable data through corroboration with observable market data. Inputs would normally be (i) quoted prices in active markets for similar assets or liabilities, (ii) quoted prices in inactive markets for identical or similar assets or liabilities or (iii) information derived from or corroborated by observable market data.

• Level 3 – Fair value based on prices or valuation techniques that require significant unobservable data inputs. Inputs would normally be a reporting entity’s own data and judgments about assumptions that market participants would use in pricing the asset or liability.

Determining which category an asset or liability falls within the hierarchy may require significant judgment. The Company evaluates its hierarchy disclosures each quarter. The Company believes that the carrying values of all financial instruments, except long-term debt, approximate their values due to their nature and respective durations. The carrying value of long-term debt approximates fair value based on borrowing rates currently available to the Company.

Allowance for Doubtful Accounts

The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. The allowance for doubtful accounts is based on specific identification of customer accounts and its best estimate of the likelihood of potential loss, taking into account such factors as the financial condition and payment history of major customers. The Company evaluates the collectability of its receivables at least quarterly. The allowance for doubtful accounts is subject to estimates based on the historical actual costs of bad debt experienced, total accounts receivable amounts, age of accounts receivable and any knowledge of the customers’ ability or inability to pay outstanding balances. If the financial condition of the Company's customers were to deteriorate, resulting in impairment of their ability to make payments, additional allowances may be required. The differences could be material and could significantly impact cash flows from operating activities.

Inventories

Inventories are stated at the lower of cost or current estimated market value. Cost is determined using the first-in, first-out method. Inventories consist primarily of hardware that will be sold to customers. The Company periodically reviews its inventories and records a provision for excess and obsolete inventories based primarily on the Company’s estimated forecast of product demand. Once established, write-downs of inventories are considered permanent adjustments to the cost basis of the obsolete or excess inventories.

F-9

Property and Equipment

Property and equipment are stated at cost, and are depreciated using the straight-line method over the estimated useful lives of the related assets, ranging from three to five years. Leasehold improvements are amortized using the straight-line method over the lesser of the estimated useful lives of the assets or the related lease terms. Equipment under capital lease obligations is depreciated over the shorter of the estimated useful lives of the related assets or the term of the lease. Maintenance and routine repairs are charged to expense as incurred. Significant renewals and betterments are capitalized. At the time of retirement or other disposition of property and equipment, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of comprehensive income.

Software Development Costs

Costs incurred to develop computer software products to be sold or otherwise marketed are charged to expense until technological feasibility of the product has been established. Once technological feasibility has been established, computer software development costs (consisting primarily of internal labor costs) are capitalized and reported at the lower of amortized cost or estimated realizable value. Purchased software development cost is capitalized and recorded at its estimated fair market value. When a product is ready for general release, its capitalized costs are amortized on a product-by-product basis. The annual amortization is the greater of the amounts of: the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product and, the straight-line method over the remaining estimated economic life (a period of three to ten years) of the product including the period being reported on. Amortization of capitalized software development costs are included in the cost of revenues line on the consolidated statements of comprehensive income. If the future market viability of a software product is less than anticipated, impairment of the related unamortized development costs could occur, which could significantly impact the Company’s results of operations.

Amortizable Intangible Assets

Amortizable intangible assets consist of completed software technology, customer contracts/relationships, automotive data services, and acquired intellectual property and are recorded at cost. Completed software technology and customer contracts/relationships are amortized using the straight-line method over their estimated useful lives of 9 to 10 years, automotive data services are amortized using the straight-line method over their estimated useful lives of 20 years and acquired intellectual property is amortized over the estimated useful life of 10 years.

Goodwill

Goodwill is not amortized, but rather is tested at least annually for impairment.

Goodwill is subject to impairment reviews by applying a fair-value-based test at the reporting unit level, which generally represents operations one level below the segments reported by the Company. As of June 30, 2017, the Company does not believe there is an impairment of its goodwill. There can be no assurance, however, that market conditions will not change or demand for the Company’s products and services will continue, which could result in impairment of goodwill in the future.

Goodwill activity for the years ended June 30, 2017 and 2016 was as follows (in thousands):



Balance, July 1, 2015	$	9,202
Acquisition of Origin (see Note 2)		202
Effect of exchange rate changes		(1,041	)
Balance, June 30, 2016	$	8,363
Effect of exchange rate changes		(172	)
Balance, June 30, 2017	$	8,191

Long-Lived Assets

The Company’s management assesses the recoverability of long-lived assets (other than goodwill discussed above) upon the occurrence of a triggering event by determining whether the carrying value of long-lived assets over their remaining lives can be recovered through projected undiscounted future cash flows over their remaining useful lives. The amount of long-lived asset impairment, if any, is measured based on fair value and is charged to operations in the period in which long-lived asset impairment is determined by management. At June 30, 2017, management believes there is no impairment of its long-lived assets. There can be no assurance, however, that market conditions will not change or demand for the Company’s products and services will continue, which could result in impairment of long-lived assets in the future.

F-10

Debt Issuance Costs

Debt issuance costs represent costs incurred in connection with the issuance of long-term debt. Debt issuance costs are amortized over the term of the financing instrument using the effective interest method. Debt issuance costs are presented in the condensed consolidated balance sheets as an offset against the current and non-current portions of long-term debt.

Issuance of Equity Instruments to Non-Employees

All issuances of the Company’s equity instruments to non-employees are measured at fair value based upon either the fair value of the equity instruments issued or the fair value of consideration received, whichever is more readily determinable. The majority of stock issuances for non-cash consideration pertains to services rendered by consultants and others and has been valued at the fair value of the equity instruments on the dates issued.

The measurement date for the fair value of the equity instruments issued is determined at the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached or (ii) the date at which the consultant or vendor’s performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement. Assets acquired in exchange for the issuance of fully vested, non-forfeitable equity instruments are not presented or classified as an offset to equity on the grantor’s balance sheet once the equity instrument is granted for accounting purposes.

Stock-Based Compensation

The Company accounts for stock-based compensation under the provisions of ASC No. 718, Compensation - Stock Compensation (“ASC 718”). ASC 718 requires the recognition of the fair value of the stock-based compensation in net income. Compensation expense associated with market-based restricted stock is determined using a Monte-Carlo valuation model, and compensation expense associated with time-based restricted stock is determined based on the number of shares granted and the fair value on the date of grant. For valuing stock options awards, the Company has elected to use the Black-Scholes model. For the expected term, the Company uses a simple average of the vesting period and the contractual term of the option. Volatility is a measure of the amount by which the Company’s stock price is expected to fluctuate during the expected term of the option. For volatility the Company considers its own volatility as applicable for valuing its options and warrants. With the adoption of ASU 2016-09 during the year ended June 30, 2017, forfeitures will be accounted prospectively for as they are incurred, rather than estimated at time of grant. The risk-free interest rate is based on the relevant US Treasury Bill Rate at the time of each grant. The dividend yield represents the dividend rate expected to be paid over the option’s expected term; the Company currently has no plans to pay dividends. The fair value of stock-based awards is amortized over the vesting period of the award or expected vesting date of the market-based restricted shares and the Company elected to use the straight-line method for awards granted.

Revenue Recognition

The Company accounts for delivered elements in accordance with the selling price when arrangements include multiple product components or other elements and vendor-specific objective evidence exists for the value of all undelivered elements. Revenues on undelivered elements are recognized once delivery is complete.

In those instances, in which arrangements include significant customization, contractual milestones, acceptance criteria or other contingencies, the Company accounts for the arrangements using contract accounting, as follows:

•	when customer acceptance can be estimated, but reliable estimated costs to complete cannot be determined, expenditures are capitalized as work-in process and deferred until completion of the contract at which time the costs and revenues are recognized.
•	when customer acceptance cannot be estimated based on historical evidence, costs are expensed as incurred and revenue is recognized at the completion of the contract when customer acceptance is obtained.

The Company records amounts collected from customers in excess of recognizable revenue as deferred revenue in the accompanying consolidated balance sheets. Revenues for maintenance agreements, software support, online services and information products are recognized ratably over the term of the service agreement.

F-11

The Company recognizes revenue on a net basis, which excludes sales tax collected from customers and remitted to governmental authorities.

Cost of Revenues

Advertising Expense

The Company expenses advertising costs as incurred. For the years ended June 30, 2017 and 2016, advertising expense totaled $0.4 million and $0.4 million, respectively.

Foreign Currency

Management has determined that the functional currency of its subsidiaries is the local currency. Assets and liabilities of the UK subsidiaries are translated into US dollars at the year-end exchange rates. Income and expenses are translated at an average exchange rate for the year and the resulting translation gain (loss) adjustments are accumulated as a separate component of stockholders’ equity. The translation (loss) gain adjustment totaled $(0.3) million and $(1.7) million for the years ended June 30, 2017 and 2016, respectively.

Foreign currency gains and losses from transactions denominated in other than respective local currencies are included in income. The Company had no foreign currency transaction gain (loss) for all periods presented.

Comprehensive Income

Comprehensive income includes all changes in equity (net assets) during a period from non-owner sources. For the years ended June 30, 2017 and 2016, the components of comprehensive income consist of foreign currency translation gains (losses).

Income Taxes

Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. Deferred taxation is provided in full in respect of timing differences between the treatment of certain items for taxation and accounting purposes. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. During the year ended June 30, 2017, the Company recognized penalties of $0.1 million on the Company’s consolidated balance sheet and in the consolidated statement of comprehensive income. During the year ended June 30, 2016, the Company did not recognize any interest and/or penalties.

Basic and Diluted Earnings Per Share

Basic earnings per share (“BEPS”) is computed by dividing the net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share (“DEPS”) is computed giving effect to all dilutive potential common shares outstanding during the period. Dilutive potential common shares consist of incremental shares issuable upon the exercise of stock options and warrants using the “treasury stock” method. The computation of DEPS does not assume conversion, exercise or contingent exercise of securities that would have an anti-dilutive effect on earnings. For the years ended June 30, 2017 and 2016 there were common share equivalents of 54,008 and 175,863, respectively, included in the computation of the DEPS. For the years ended June 30, 2017 and 2016, 503,951 and 691,505 shares of common stock, respectively, vest based on the market price of the Company’s common stock and were excluded from the computation of DEPS because the shares have not vested, but no stock options were excluded from the computation of DEPS.

F-12

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations for the years ended June 30 (in thousands, except for per share amounts):

	2017		2016
Numerator:
Net income	$	4,578	$	3,552

Denominator:
Basic weighted-average shares outstanding		11,732		12,314
Effect of dilutive securities		54		176
Diluted weighted-average diluted shares		11,786		12,490
Basic earnings per common share	$	0.39	$	0.29
Diluted earnings per common share	$	0.39	$	0.28

Reclassifications

Certain expenses were reclassified from depreciation and amortization to cost of revenues in the accompanying consolidated statement of comprehensive income for the year ended June 30, 2016, in order to conform to the current period presentation.

The Company adopted Accounting Standards Update ("ASU") 2015-03, Imputation of Interest - Simplifying the Presentation of Debt Issuance Costs, on a retrospective basis on July 1, 2016 and prior period amounts have been reclassified to conform to the current period presentation. As of June 30, 2016, net debt issuance costs of $91,000 were reclassified in the consolidated balance sheet from other long-term assets to an offset against the current and non-current portions of long-term debt.

Recent Accounting Pronouncements

Recently Adopted Accounting Standards

In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. As required by ASU 2016-09, excess tax benefits recognized on stock-based compensation expense are reflected in the Company’s consolidated statements of comprehensive income as a component of the provision for income taxes on a prospective basis. Excess tax benefits are classified as an operating activity in our consolidated statements of cash flows and we have applied this provision on a retrospective basis. We elected to early adopt this standard in the fourth quarter of our fiscal year that began July 1, 2016. As of June 30, 2016, we had excess tax benefits for which benefits could not be previously recognized of approximately $0.7 million, due to net operating loss carryforwards resulting from the windfall tax benefits. Upon adoption, we recognized the previously unrecognized excess tax benefits of $0.7 million with an offsetting increase in our valuation allowance using a modified retrospective method through a cumulative effect adjustment to the accumulated deficit, with no net impact on our financial statements at the effective date of July 1, 2016. In addition, we have elected to account for forfeitures as they occur, rather than estimate expected forfeitures over the course of a vesting period. There was no additional impact to the Company’s consolidated financial statements as a result of adopting ASU 2016-09.

In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, an update to ASC 740, Income Taxes (“Update”). Current GAAP requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. To simplify the presentation of deferred income taxes, the amendments in this Update require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this update. For public business entities, the amendments in this Update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Update permits earlier application by all entities as of the beginning of any interim or annual reporting period. This Update may be applied to all deferred tax liabilities and assets prospectively. The Company chose to adopt the Update prospectively beginning in the year ended June 30, 2017.

F-13

Accounting Standards Not Yet Adopted

In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This update simplifies the subsequent measurement of goodwill by eliminating step two from the goodwill impairment test. Under the new guidance, an entity performs its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the carrying amount of goodwill allocated to the reporting unit. ASU 2017-04 will be effective for the Company for the fiscal year ended June 30, 2021. Early adoption is permitted. The Company does not expect the adoption of ASU 2017-04 to have a significant impact on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases. The update requires lessees to present right-of-use assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. The guidance is to be applied using a modified retrospective approach at the beginning of the earliest comparative period in the financial statements and will be effective for the Company for the fiscal year ended June 30, 2021. The Company is currently assessing the impact the adoption of ASU 2016-02 will have on its consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. In July 2015, the FASB provided a one-year delay in the effective date of ASU 2014-09, to be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and a permission to early adopt for annual and interim periods beginning after December 15, 2016. The Company has performed a review of the new revenue standard and is monitoring the activity of the FASB and the transition resource group as it relates to specific interpretative guidance. The Company is assessing the impact of the five-step model of the new standard on its contracts compared to the results of current accounting practice. The Company plans to adopt ASU 2014-09 on July 1, 2018. The Company has not yet determined whether it will adopt the provisions of ASU 2014-09 on a retrospective basis or through a cumulative adjustment to retained earnings. The new standard could change the amount and timing of revenue and costs under certain arrangement types and could increase the administrative burden on the Company’s operations to properly account for customer contracts and provide the more expansive required disclosures. The Company is currently evaluating the impact of adopting ASU 2014-09, but has not yet determined what effect, if any, the new guidance will have on its consolidated financial position, results of operations or cash flows.

In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements-Going Concern. Currently, there is no guidance in accounting principles generally accepted in the US about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related footnote disclosures. The amendments require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in US auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this ASU are effective for the reporting periods beginning after December 15, 2016 and early application is permitted. The Company is currently assessing the impact the adoption of ASU 2014-15 will have on its consolidated financial statements.

F-14

NOTE 2. BUSINESS ACQUISITION

On July 1, 2015, MAM Ltd. acquired 100% of the stock of Origin, a UK-based provider of e-commerce solutions for the automotive aftermarket. With the acquisition of Origin, MAM is able to strengthen its e-commerce strategy by being able to provide customers with a range of e-commerce solutions for the automotive aftermarket. The Company paid $503,000 at closing of the acquisition. The Company will also make future cash payments of $416,000 and issue stock consideration of $283,000 in the future if Origin reaches established earnings targets. The Company recorded the estimated fair value of the contingent consideration of $470,000 in other long-term liabilities on its consolidated balance sheet as of June 30, 2017. In connection with the acquisition, the Company incurred acquisition-related costs of $53,000, which were expensed and included in general and administrative expenses in the accompanying consolidated statement of comprehensive income for the year ended June 30, 2016.

The Company allocated the purchase consideration to acquire Origin to (1) net assets acquired of $177,000, (2) finite-lived intangible assets of $1.0 million for acquired intellectual property (with an estimated useful life of 10 years), (3) a deferred tax liability of $202,000, and (4) goodwill of $202,000. The goodwill from this acquisition is non-deductible for tax purposes. The results of operations of Origin have been included in the Company's consolidated statements of comprehensive income from the date of acquisition, however the results from Origin were not significant to the Company’s consolidated results of operations and thus pro forma information is not presented.

NOTE 3. PROPERTY AND EQUIPMENT

Property and equipment consist of the following (in thousands):

	As of
	June 30, 2017			June 30, 2016
Leasehold improvements	$	396		$	396
Computer and office equipment		928			869
Equipment under capital leases		10			10
Furniture and equipment		476			477
Total property, plant and equipment		1,810			1,752
Less: accumulated depreciation and amortization		(1,299	)		(1,171	)
Total property, plant and equipment, net	$	511		$	581

Depreciation expense on property and equipment for the years ended June 30, 2017 and 2016 was $0.1 million and $0.3 million, respectively.

NOTE 4. INTANGIBLE ASSETS

Intangible assets consist of the following at June 30, 2017 (dollars in thousands):

	Average Estimated Useful Life (in years)			Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Completed software technology	9	to	10	$	1,061	$	(1,061	)	$	-
Customer contracts / relationships		10			527		(527	)		-
Automotive data services		20			255		(255	)		-
Acquired intellectual property		10			798		(159	)		639
Software development costs	3	to	10		10,331		(2,697	)		7,634
Total				$	12,972	$	(4,699	)	$	8,273

F-15

Intangible assets consist of the following at June 30, 2016 (dollars in thousands):

	Average Estimated Useful Life (in years)			Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Completed software technology	9	to	10	$	1,093	$	(1,093	)	$	-
Customer contracts / relationships		10			543		(543	)		-
Automotive data services		20			262		(262	)		-
Acquired intellectual property		10			822		(83	)		739
Software development costs	3	to	10		7,887		(2,653	)		5,234
Total				$	10,607	$	(4,634	)	$	5,973

For the years ended June 30, 2017 and 2016, the Company recognized amortization expense on its software development costs and other amortizable intangible assets of $0.4 million and $0.4 million, respectively.

Estimated future amortization of software development costs and intangibles is as follows (in thousands):

Years Ending June 30,
2018	$	706
2019		953
2020		898
2021		873
2022		873

NOTE 5. LONG-TERM DEBT

	As of
(dollars in thousands)	June 30, 2017			June 30, 2016
Debt obligations:
Revolving loan facility	$	-		$	1,150
Term loan		8,217			8,550
Equipment financing		-			78
Less: unamortized debt issuance cost		(97	)		(91	)
Total		8,120			9,687
Less current portion		(1,734	)		(1,879	)
Long-term debt	$	6,386		$	7,808

On December 1, 2015, the Company entered into a credit agreement with J.P. Morgan Chase Bank, N.A. (“JPM Credit Facility”) to provide for borrowings up to $12.0 million consisting of a $9.5 million term loan and a $2.5 million revolver. On December 1, 2015, the Company borrowed $10.5 million under the JPM Credit Facility to fund a portion of the Tender Offer (see Note 8). On September 26, 2016, the Company entered into an amendment to its JPM Credit Facility (the "Amendment", and as amended, the "Prior Credit Facility"). The Amendment changed certain loan covenants, including the financial ratios and liquidity requirements.

On March 2, 2017, the Company entered into a credit facility ("New Credit Facility") with Univest Bank and Trust Co. (“Univest”). In connection with the New Credit Facility, the parties entered into ancillary agreements, including a credit agreement, a revolving credit note and a term note (collectively, the "Credit Agreements"). The New Credit Facility allows for borrowings up to $11.5 million consisting of an $8.75 million term loan and a $2.75 million revolver. The Company used the initial proceeds of the New Credit Facility to repay all of its obligations under its Prior Credit Facility with J.P. Morgan Chase Bank, N.A. The borrowings under the Credit Agreements bear interest at a variable rate based on either LIBO Rate (as defined in the Credit Agreements) or the Univest Float Rate (as defined in the Credit Agreements), plus an applicable margin of 2.75% to 3.25%, based upon financial covenants. The term note requires monthly payments of $133,333 through December 1, 2017, then $158,333 through December 1, 2018, and $175,000 thereafter through maturity. The maturity date under the Credit Agreements is August 1, 2021.

As of June 30, 2017, the Company did not have any borrowings under its revolving credit note. Under the terms of the Credit Agreements, the Company is required to comply with certain loan covenants, which include, but are not limited to, the maintenance of certain financial ratios as well as certain financial reporting requirements and limitations. The Company’s obligations under the Credit Agreements are secured by all of the Company’s US assets and are guaranteed by the Company’s US wholly-owned subsidiary, MAM Software Inc. Additionally, the Company pledged 65% of the stock of MAM Software Limited, its UK subsidiary. As of June 30, 2017, the Company was in compliance with its loan covenants.

F-16

Future minimum payments under long-term debt outstanding at June 30, 2017 are as follows (in thousands):

For the years ending June 30,
2018	$	1,775
2019		2,017
2020		2,100
2021		2,100
2022		225
Total debt payments	$	8,217

NOTE 6. INCOME TAXES

The Company is subject to taxation in the US, UK and various US state jurisdictions. The Company’s tax years for 1999 and forward are subject to examination by the US and state tax authorities due to losses incurred since inception. The Company is currently not under any material examination by any taxing authorities.

The Company follows the provisions of ASC 740-10, Income Taxes, that defines a recognition threshold and measurement attributes for the financial recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740-10 also provides guidance on the de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. Under ASC 740-10, the impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likely of being sustained.

The Company does not have any unrecognized tax benefits that, if recognized, would affect the effective tax rate.

The Company’s practice is to recognize interest and/or penalties related to income matters in income tax expense. During the year ended June 30, 2017, the Company recognized penalties of $0.1 million. There were no interest and penalties recognized by the Company for the year ended June 30, 2016.

Income (loss) before income taxes for the years ended June 30, 2017 and 2016 was taxed under the following jurisdictions (in thousands):

	As of
	June 30, 2017		June 30, 2016
United States of America	$	935	$	246
United Kingdom		2,723		3,495
	$	3,658	$	3,741

The provision (benefit) for income taxes consists of the following for the years ended June 30, 2017 and 2016 (in thousands):

	US Federal			US State			UK Corporate			Total
2017
Current	$	473		$	111		$	19		$	603
Deferred		(1,550	)		(129	)		156			(1,523	)
Total	$	(1,077	)	$	(18	)	$	175		$	(920	)

2016
Current	$	-		$	31		$	(162	)	$	(131	)
Deferred		-			-			320			320
Total	$	-		$	31		$	158		$	189

F-17

As stated in the recent accounting pronouncements, the Company early adopted ASU 2016-09. As of June 30, 2016, prior to the adoption of ASU 2019-09, the Company had excess tax benefits for which benefits could not be previously recognized of approximately $0.7 million, due to net operating loss carryforwards resulting from the windfall tax benefits. On July 1, 2016, upon the effective date of the adoption, the Company recognized the previously unrecognized excess tax benefits of $0.7 million with an offsetting increase in the Company’s valuation allowance using a modified retrospective method through a cumulative effect adjustment to the accumulated deficit, with no net impact on the Company’s financial statements.

At June 30, 2017, the Company had net US deferred tax assets of approximately $2.7 million. Due to uncertainties surrounding the Company’s ability to generate future capital gains, a valuation allowance has been established to offset carry-forwards of its capital losses due to investments previously written off. Additionally, the future utilization of the Company’s federal and state NOLs to offset future taxable income have been determined to be subject to annual limitation pursuant to Internal Revenue Code (“IRC”) Sections 382 and 383 as a result of ownership changes that have previously occurred.

Through its Section 382 study, the Company has analyzed any NOLs from its acquired subsidiaries to determine the maximum potential future tax benefit that might be available, and the corresponding limitation imposed based on IRC Section 382. As a result, by the year ended June 30, 2011, the Company adjusted the aforementioned net operating losses previously estimated. The outcome resulted in a determination that it could utilize, annually, approximately $0.4 million of previously incurred NOLs; presuming, however, there is taxable income in future periods affording utilization prior to expiration.

At June 30, 2017, the Company had combined federal and state NOLs of approximately $4.4 million and $2.6 million, respectively. The federal and state tax loss carry-forwards will begin to expire in 2019 and 2024, respectively, unless previously utilized.

Significant components of the Company’s net deferred tax assets at June 30, 2017 and 2016 are shown below. A valuation allowance of $1.7 million and $4.9 million has been established to offset the net deferred tax assets as of June 30, 2017 and 2016, respectively. The $3.2 million net decrease in the valuation allowance for the year ended June 30, 2017 is primarily attributable to the partial release of the valuation allowance during the three months ended June 30, 2017. The Company released the valuation allowance on all of its domestic deferred tax assets, except for capital loss carry-forwards that are not more likely than not to be realized.

Included in the Company’s current year tax benefit for the change in valuation allowance of $3.9M is the excess tax benefit of $0.7 million.

The tax effects of temporary differences and carry-forwards that give rise to significant portions of deferred tax assets (liabilities) consist of the following at June 30, 2017 and 2016 (in thousands):

	June 30,			June 30,
	2017			2016
Deferred tax assets:
State taxes	$	36		$	1
Net operating loss carry-forwards		1,549			2,759
Write-down of investments		1,716			1,745
Equity-based compensation		63			67
Reserves and accruals		329			274
Deferred rent		4			3
Tax credits		9			-
Domestic intangibles and other long-lived assets		-			101
Total deferred tax assets		3,706			4,950

Deferred tax liabilities:
Foreign intangible and other long-lived assets		(718	)		(546	)
Domestic intangible and other long-lived assets		(110	)
Unremitted foreign earnings		(165	)		-
Total deferred tax liabilities		(993	)		(546	)

Valuation allowance		(1,716	)		(4,939	)
Net deferred tax assets (liabilities)	$	997		$	(535	)

F-18

The provision (benefit) for income taxes for the years ended June 30, 2017 and 2016 differs from the amount computed by applying the US federal income tax rates to net income from continuing operations before taxes as a result of the following (in thousands):

	June 30,
	2017			2016
Taxes at federal statutory rates	$	1,244		$	1,272
State taxes, net of federal benefit		93			8
Rate changes		289			(19	)
Unrecognized tax benefits		88			-
Permanent items and other		116			100
Research and development		(333	)		(577	)
NOL expiration		3			-
Differential in UK corporate tax rate		(388	)		(515	)
Unremitted foreign earnings		164			-
Stock compensation		(237	)		-
Foreign dividends		9,452			-
Foreign tax credits		(7,522	)		-
Change in valuation allowance		(3,889	)		(80	)
(Benefit) provision for income taxes	$	(920	)	$	189

During the year ended June 30, 2016, the Company completed a formal research and development expense study in the UK and identified qualifying expenses related to the prior years which resulted in a reduction in the tax provision of $0.2 million, which is included in the rate reconciliation above.

NOTE 7. COMMITMENTS AND CONTINGENCIES

Legal Matters

From time to time, the Company is subject to various legal claims and proceedings arising in the ordinary course of business. The ultimate disposition of such a proceeding if initiated could have material adverse effects on the consolidated financial position or results of operations of the Company. There are currently no pending material legal proceedings.

Indemnities and Guarantees

The Company has made certain indemnities and guarantees, under which it may be required to make payments to a guaranteed or indemnified party, in relation to certain actions or transactions. The Company indemnifies its directors, officers, employees and agents, as permitted under the laws of the State of Delaware. In connection with its New Credit Facility (see Note 5), the Company indemnified the lender for certain losses, claims, and other liabilities that are standard for this type of agreement. In connection with its facility leases, the Company has indemnified its lessors for certain claims arising from the use of the facilities. In connection with its customers’ contracts the Company indemnifies the customer that the software provided does not violate any US patent. The duration of the guarantees and indemnities varies, and is generally tied to the life of the agreement. These guarantees and indemnities do not provide for any limitation of the maximum potential future payments the Company could be obligated to make. Historically, the Company has not been obligated to make nor incurred any payments for these obligations and, therefore, no liabilities have been recorded for these indemnities and guarantees in the accompanying consolidated balance sheets.

F-19

Operating Leases

The Company leases its facilities and certain equipment pursuant to month-to-month and non-cancelable operating lease agreements that expire on various dates through March 2028. Terms of the leases provide for monthly payments ranging from $900 to $19,800. The Company incurred rent expense totaling approximately $0.5 million and $0.4 million for the years ended June 30, 2017 and 2016, respectively. Future annual minimum payments under non-cancelable operating leases are as follows (in thousands):

For the years ended June 30,
2018	$	725
2019		669
2020		592
2021		414
2022		400
Thereafter		1,323
Total operating lease obligations	$	4,123

NOTE 8. STOCKHOLDERS’ EQUITY

Common Stock

The Company issues shares of common stock to the non-management members of the Board of Directors under the Company’s 2007 Long Term Incentive Plan ("2007 LTIP") and 2017 Equity Incentive Plan (“2017 EIP”) in respect of quarterly compensation. The shares vest over a three-year period and are issued quarterly. The Company also gives the non-management members of the Board of Directors the option to receive shares of common stock in lieu of cash compensation.

On July 1, 2015, the Company approved the issuance of 47,663 shares of common stock to the non-management members of the Board of Directors under the Company’s 2007 LTIP in respect of quarterly compensation. The shares vest over a three-year period and are issued quarterly. The shares were valued at approximately $255,000, based on the closing market price of the Company’s common stock on the date of the grant.

On January 6, 2017, the Company approved the issuance of 37,795 shares of common stock to the non-management members of the Board of Directors under the Company’s 2017 EIP in respect of quarterly compensation. The shares vest over a three-year period and are issued quarterly. The shares were valued at approximately $241,000, based on the closing market price of the Company’s common stock on the day of the grant.

During the years ended June 30, 2017 and 2016, the Company issued 55,010 and 57,126 shares of common stock, respectively, for the vesting of shares granted to the non-management members of the Board of Directors under the Company’s 2007 LTIP and 2017 EIP and in lieu of cash compensation.

Tender Offer

On December 1, 2015, the Company completed a cash tender offer (the “Tender Offer”) and purchased 2.0 million shares of its common stock at a purchase price of $7.50 per share for a total purchase price of $15.0 million. The Company canceled and retired the shares purchased pursuant to the Tender Offer. In connection with the Tender Offer, the Company incurred costs of $0.1 million directly related to the Tender Offer, which were recorded in additional paid-in capital.

Treasury Stock

During the year ended June 30, 2017, the Company retired approximately 785,000 shares of common stock in treasury, at cost of $2.4 million.

During the year ended June 30, 2016, the Company repurchased, under its stock repurchase program, 29,695 shares of common stock at a cost of $0.2 million. As of June 30, 2017, the Company has repurchased a total of 1,982,235 shares at a cost of $4.7 million, pursuant to a stock repurchase program approved by the Company’s Board of Directors. The stock repurchase program was cancelled on October 30, 2015 in connection with the Tender Offer.

F-20

Stock-Based Compensation

Stock-based compensation expense for restricted stock and stock issuances of $0.4 million and $0.4 million was recorded in the years ended June 30, 2017 and 2016, respectively, and was recorded in general and administrative expenses in the statements of comprehensive income. As of June 30, 2017, $0.2 million of total unrecognized stock-based compensation expense related to restricted stock is expected to be recognized over approximately 2.1 years.

A summary of the Company's common stock option activity is presented below (shares in thousands):

	Options Outstanding
	Number of Shares (in thousands)			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value (in thousands)
Options outstanding - July 1, 2016		121		$	1.23
Options granted		-			-
Options exercised		(53	)		1.13
Options cancelled		-			-
Options outstanding - June 30, 2017		68		$	1.30		4.0	$	338
Options exercisable - June 30, 2017		68		$	1.30		4.0	$	338
Options exercisable and vested - June 30, 2017		68		$	1.30		4.0	$	338

The aggregate intrinsic value represents the total pre-tax amount of proceeds, net of the exercise price, which would have been received by the option holders if all option holders had exercised and immediately sold all options with an exercise price lower than the market price of the Company's common stock on June 30, 2017.

During the year ended June 30, 2017, stock options to purchase approximately 33,000 shares of common stock were exercised for cash proceeds of $16,300. In addition, stock options to purchase approximately 20,000 shares of common stock were exercised on a cashless basis resulting in the issuance of 11,432 shares of common stock. The aggregate intrinsic value of the stock options exercised during the year ended June 30, 2017 was $0.3 million.

A summary of the Company's restricted common stock activity is presented below (shares in thousands):

				Weighted Average
	Number of Shares			Initial Value Price
	(in thousands)			Per Share
Restricted stock outstanding - July 1, 2016		776		$	0.87
Issuance of restricted stock		-			-
Vesting		(85	)		0.39
Forfeitures		(187	)		0.35
Restricted stock outstanding - June 30, 2017		504		$	0.94

F-21

A summary of the vesting levels of the Company's restricted common stock is presented below (shares in thousands):

			Weighted Average
	Number of		Initial Value Price
	Shares		Per Share
30 day VWAP per share vesting level (1):
$8.00 per share		294	$	0.48
$9.00 per share		82	$	1.25
$10.00 per share		48	$	1.79
$11.00 per share		48	$	1.79
$12.00 per share		32	$	1.79

(1)

The outstanding restricted stock becomes vested when the Company’s 30-day volume weighted average price (“VWAP”) per share is at or above these levels.

During the years ended June 30, 2017 and 2016, the Company withheld 26,535 and 60,612 shares of common stock at a cost of $0.2 million and $0.3 million, respectively, for the payment of taxes on shares that vested during the year.

Employee Stock Purchase Plan

The Company has established Employee Stock Purchase Plans ("ESPP Plans"). Under the ESPP Plans, the Company will grant eligible employees the right to purchase common stock through payroll deductions. US employees purchase stock at a price equal to the lesser of 85 percent of the fair market value of a share of the Company’s common stock on the Exercise Date (as defined under the ESPP Plans) of the current Offering Period (as defined under the ESPP Plans) or 85 percent of the fair market value of the Company's common stock on the Grant Date (as defined under the ESPP Plans) of the Offering Period. UK employees purchase at a price equal to the lesser of 100 percent of the fair market value of a share of the Company’s common stock on the Exercise Date of the current Offering Period or 100 percent of the fair market value of the Company's common stock on the Grant Date of the Offering Period, but receive a 15 percent matching contribution from the Company.

During the year ended June 30, 2017, the Company issued 13,835 shares of common stock to employees, including executive officers, under the ESPP in lieu of compensation, which shares of common stock were valued at approximately $0.1 million based on the closing market price of the Company’s common stock on June 30, 2016 and July 1, 2016.

NOTE 9. EMPLOYEE BENEFIT PLANS

The Company has a retirement plan that complies with Section 401(k) of the Internal Revenue Code. All US employees are eligible to participate in the plan. The Company’s contribution to the 401(k) Plan is at the discretion of the Board of Directors. The Company matches 100% of elective deferrals subject to a maximum of 3% of the participant’s eligible earnings. The Company’s matching contributions to the 401(k) for the years ended June 30, 2017 and 2016 were $0.1 million and $0.1 million, respectively.

The Company has a defined contribution retirement plan ("UK Plan") that all UK employees are eligible to participate in. The Company’s contribution to the UK Plan is at the discretion of the Board of Directors. The Company matches 100% of elective deferrals subject to a maximum of 3% of the participant’s eligible earnings. The Company’s matching contributions to the UK Plan for the years ended June 30, 2017 and 2016 were $0.2 million and $0.2 million, respectively.

NOTE 10. SUBSEQUENT EVENTS

The Company has performed an evaluation of events occurring subsequent to June 30, 2017, through the filing date of this Annual Report on Form 10-K. Based on its evaluation, there are no events that are required to be disclosed herein.

F-22

INDEX TO EXHIBITS

Exhibit No.		Description of Exhibit

3(i)		Certificate of Incorporation of MAM Software Group, Inc., as amended (incorporated by reference to Exhibit 3(i) to the Company’s Annual Report on Form 10-K filed on September 25, 2013).

3(ii)		By laws (incorporated by reference to Exhibit 3(ii) to the Company’s Registration Statement on Form 10KSB filed on October 13,2006).

4.1		Form of Certificate of Common stock (incorporated by reference to Exhibit 4.1 to the Company’s Registration Statement on Form SB-2 filed on February 16, 2007).

4.2		Certificate of Designation for Series A Convertible Preferred Stock (incorporated by reference to Exhibit 4.2 to the Company’s Annual Report on Form 10-K filed on September 25, 2013).

10.1		Credit Agreement, dated as of December 1, 2015 by and among MAM Software Group, Inc. and J.P. Morgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.1 to our Form 8-K dated December 4, 2015).

10.2		Revolving Credit Note, dated December 1, 2015, by and among MAM Software Group, Inc. and J.P. Morgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.2 to our Form 8-K dated December 4, 2015).

10.3		Term Note, dated December 1, 2015, by and among MAM Software Group, Inc. and J.P. Morgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.3 to our Form 8-K dated December 4, 2015).

10.4		Pledge and Security Agreement, dated December 1, 2015, by and among MAM Software Group, Inc. and J.P. Morgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.4 to our Form 8-K dated December 4, 2015).

10.5		Deed of Negative Pledge Agreement, dated December 1, 2015, by and among MAM Software Group, Inc., MAM Software Limited, and J.P. Morgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.6 to our Form 8-K dated December 4, 2015).

10.6		Guaranty of Payment Agreement, dated December 1, 2015, by and among MAM Software, Inc. and J.P. Morgan Chase Bank, N.A. (incorporated by reference to Exhibit 10.7 to our Form 8-K dated December 4, 2015).

10.7		Credit Agreement dated as of March 2, 2017, among MAM Software Group, Inc. and Univest Bank and Trust Co. (incorporated by reference to Exhibit 10.1 to our Form 8-K dated March 8, 2017).

10.8		Revolving Credit Note dated March 2, 2017, in the principal amount of $2,750,000 (incorporated by reference to Exhibit 10.2 to our Form 8-K dated March 8, 2017).

10.9		Term Note dated March 2, 2017, in the principal amount of $8,750,000 (incorporated by reference to Exhibit 10.3 to our Form 8-K dated March 8, 2017).

10.10		Pledge and Security Agreement dated as of March 2, 2017, by and between MAM Software Group, Inc., Borrower, and Univest Bank and Trust Co., on behalf of Lender and the other Secured Parties (incorporated by reference to Exhibit 10.4 to our Form 8-K dated March 8, 2017).

10.11		Pledge and Security Agreement dated as of March 2, 2017, by and between MAM Software, Inc., Grantor, and Univest Bank and Trust Co., on behalf of Lender and the other Secured Parties (incorporated by reference to Exhibit 10.5 to our Form 8-K dated March 8, 2017).

10.12		Deed of Negative Pledge Agreement dated as of March 2, 2017, by and between MAM Software Group, Inc. and MAM Software Limited and Univest Bank and Trust Co. (incorporated by reference to Exhibit 10.6 to our Form 8-K dated March 8, 2017).


10.13		Guaranty of Payment Agreement dated as of March 2, 2017, by MAM Software Group, Inc., a Guarantor, in favor of Univest Bank and Trust Co., as Lender (incorporated by reference to Exhibit 10.7 to our Form 8-K dated March 8, 2017).

10.14		2007 Long-Term Stock Incentive Plan (incorporated by reference to Appendix D of the Company’s revised Definitive Proxy Statement filed on May 19, 2008).

10.15‡		Employment Agreement effective as of July 1, 2010 between the Company and Michael Jamieson (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on July 21, 2010).

10.16‡		Employment Agreement effective as of April 1, 2017 between the Company and Michael Jamieson (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on March 28, 2017).

10.17‡		Employment Agreement effective as of October 16, 2015 between the Company and Brian H. Callahan (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on October 19, 2015).

10.18‡		Employment Agreement effective as of July 1, 2013 between the Company and Lee Broad (incorporated by reference to Exhibit 10.4 to the Company's Annual Report on Form 10-K filed on September 24, 2015).

10.19‡		Separation Agreement effective as of October 19, 2015 between the Company and Charles F. Trapp (incorporated by reference to Exhibit 10.9 to the Company's Quarterly Report on Form 10-Q filed on February 16, 2016).

10.20‡		MAM Software Group, Inc. Employee Stock Purchase Plan, effective as of December 16, 2011 (incorporated by reference to Exhibit 10.12 to the Company's Annual Report on Form 10-K filed Septeber 26, 2016).

10.21		Amended Credit Agreement, dated as of September 26, 2016, by and among MAM Software Group, Inc. and J.P. Morgan Chase Bank, N.A. (incorporate by reference to Exhibit 10.13 to the Company’s Annual Report on Form 10-K filed on September 26, 2016).

14.1		Code of Ethics (incorporated by reference to Exhibit 14 to the Company’s Annual report on Form 10KSB/A for the fiscal year ended June 30, 2007 filed October 15, 2007.)

21.1		List of Subsidiaries (filed herewith).

23.1		Consent of KMJ Corbin & Company LLP (filed herewith).

31.1		Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).

31.2		Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).

32.1		Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).

32.2		Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).

101.INS		XBRL Instance Document
101.SCH		XBRL Taxonomy Schema
101.CAL		XBRL Taxonomy Calculation Linkbase
101.DEF		XBRL Taxonomy Definition Linkbase
101.LAB		XBRL Taxonomy Label Linkbase
101.PRE		XBRL Taxonomy Presentation Linkbase

In accordance with SEC Release 33-8238, Exhibits 32.1 and 32.2 are being furnished and not filed.

‡ Management contract or compensatory plan or arrangement.

EX-21.1 2 ex21-1.htm EXHIBIT 21.1 EX21-1.htm

Exhibit 21.1

LIST OF SUBSIDIARIES

Name of Subsidiary		State of Incorporation

MAM Software, Inc.		Delaware
MAM Software Ltd.		United Kingdom
Origin Solutions, Ltd.		United Kingdom

EX-23.1 3 ex23-1.htm EXHIBIT 23.1 ex23-1.htm

Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in Registration Statement Nos. 333-216712, 333-217779, 333-217780, 333-217782 on Form S-8 of our report dated September 28, 2017, relating to the consolidated financial statements of MAM Software Group, Inc. and subsidiaries appearing in this Annual Report on Form 10-K of MAM Software Group, Inc. for the year ended June 30, 2017.

/s/ KMJ Corbin & Company LLP

Costa Mesa, California

September 28, 2017

EX-31.1 4 ex31-1.htm EXHIBIT 31.1 EX31-1.htm

Exhibit 31.1

CERTIFICATION

OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Michael G. Jamieson, certify that:

1. I have reviewed this annual report on Form 10-K of MAM Software Group, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a–15(f) and 15d–15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant‘s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: September 28, 2017	By:	/s/ Michael G. Jamieson
		Michael G. Jamieson
		Chief Executive Officer
		(Principal Executive Officer)

EX-31.2 5 ex31-2.htm EXHIBIT 31.2 EX31-2.htm

Exhibit 31.2

CERTIFICATION

OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Brian H. Callahan, certify that:

1. I have reviewed this annual report on Form 10-K of MAM Software Group, Inc.;

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: September 28, 2017	By:	/s/ Brian H. Callahan
		Brian H. Callahan
		Chief Financial Officer
		(Principal Financial Officer)

EX-32.1 6 ex32-1.htm EXHIBIT 32.1 EX32-1.htm

Exhibit 32.1

CERTIFICATION

OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF

THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of MAM Software Group, Inc. (the “Company”) on Form 10-K for the year ended June 30, 2017, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Michael G. Jamieson, Chief Executive Officer of MAM Software Group, Inc., certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

	(1)	The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

	(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: September 28, 2017	By:	/s/ Michael G. Jamieson
		Michael G. Jamieson
		Chief Executive Officer
		(Principal Executive Officer)

EX-32.2 7 ex32-2.htm EXHIBIT 32.2 EX32-2.htm

Exhibit 32.2

CERTIFICATION

OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF

THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of MAM Software Group, Inc. (the “Company”) on Form 10-K for the year ended June 30, 2017, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Brian H. Callahan, Chief Financial Officer of MAM Software Group, Inc., certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

	(1)	The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

	(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: September 28, 2017	By:	/s/ Brian H. Callahan
		Brian H. Callahan
		Chief Financial Officer
		(Principal Financial Officer)

EX-101.INS 8 mams-20170630.xml XBRL INSTANCE DOCUMENT false --06-30 FY 2017 2017-06-30 10-K 0000832488 12322334 Yes Smaller Reporting Company 27000940 MAM SOFTWARE GROUP, INC. No No mams 100000 400000 283000 85000 0.85 1 0.85 1 341000 12000000 11500000 4000 3000 101000 997000 -535000 1716000 1745000 110000 718000 546000 116000 100000 0.15 217000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Geographic Concentrations</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The Company conducts business in the US<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> and Canada (US and Canada are collectively referred to as the “NA Market”), and the UK and Ireland (UK and Ireland are collectively referred to as the “UK Market”). For customers headquartered in their respective countries, the Company derived approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">63%</div> of its revenues from the UK, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">35%</div> from the US, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1%</div> from Ireland, and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1%</div> from Canada during the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017, </div>compared to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">70%</div> of its revenues from the UK, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">28%</div> from the US, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1%</div> from Ireland, and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1%</div> from Canada during the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2016.</div></div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">At <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">201</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,</div> the Company maintained <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">76%</div> of its net property and equipment in the UK and the remaining <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">24%</div> in the US.  At <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2016, </div>the Company maintained <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">79%</div> of its net property and equipment in the UK and the remaining <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">21%</div> in the US. </div></div></div></div></div></div></div> 9452000 3000 289000 -19000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Issuance of Equity Instruments to Non-Employees</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">All issuances of the Company<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">’s equity instruments to non-employees are measured at fair value based upon either the fair value of the equity instruments issued or the fair value of consideration received, whichever is more readily determinable. The majority of stock issuances for non-cash consideration pertains to services rendered by consultants and others and has been valued at the fair value of the equity instruments on the dates issued.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The measurement date for the fair value of the equity instruments issued is determined at the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached or (ii) the date at which the consultant or vendor<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">’s performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement.  Assets acquired in exchange for the issuance of fully vested, non-forfeitable equity instruments are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> presented or classified as an offset to equity on the grantor’s balance sheet once the equity instrument is granted for accounting purposes.  </div></div></div></div></div></div></div> 0 0 0 0 900 19800 118000 161000 0.65 0.76 0.24 0.79 0.21 2000000 15000000 7.50 2358000 <div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Weighted Average</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Number of</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Initial Value Price</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Shares</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Per Share</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">30 day VWAP per share vesting level (1):</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">$8.00 per share</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">294</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.48</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">$9.00 per share</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">82</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.25</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">$10.00 per share</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">48</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.79</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">$11.00 per share</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">48</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.79</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">$12.00 per share</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">32</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.79</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> </table></div> 1982235 4700000

1334000

1618000

4644000

4627000

506000

1000

2165000

1811000

1299000

1171000

-3283000

-2985000

P10Y

14180000

16162000

150000

341000

150000

400000

332000

359000

139000

32000

400000

503951

691505

26652000

22354000

7889000

7369000

53000

416000

470000

177000

202000

1000000

491000

6793000

1260000

769000

-6302000

250000

<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;"> <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-weight: bold;">NOTE <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7.</div> COMMITMENTS AND CONTINGENCIES</div></div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Legal Matters</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">From time to time, the Company is subject to various legal claims and proceedings arising in the ordinary course of business. The ultimate disposition of such a proceeding if initiated could have material adverse effects on the consolidated financial position or results of operations of the Company. There are currently <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> pending material legal proceedings.</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Indemnities and Guarantees</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The Company has made certain indemnities and guarantees, under which it <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be required to make payments to a guaranteed or indemnified party, in relation to certain actions or transactions. The Company indemnifies its directors, officers, employees and agents, as permitted under the laws of the State of Delaware. In connection with its <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">New Credit Facility (see Note <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div>), the Company indemnified the lender for certain losses, claims, and other liabilities that are standard for this type of agreement. In connection with its facility leases, the Company has indemnified its lessors for certain claims arising from the use of the facilities. In connection with its customers’ contracts the Company indemnifies the customer that the software provided does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> violate any US patent. The duration of the guarantees and indemnities varies, and is generally tied to the life of the agreement. These guarantees and indemnities do <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> provide for any limitation of the maximum potential future payments the Company could be obligated to make. Historically, the Company has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> been obligated to make nor incurred any payments for these obligations and, therefore, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> liabilities have been recorded for these indemnities and guarantees in the accompanying consolidated balance sheets.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div><div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;"><div style="display: inline; font-weight: bold;"></div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;"><div style="display: inline; font-weight: bold;">Operating Leases</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The Company leases its facilities and certain equipment pursuant to month-to-month and non-cancelable operating lease agreements that expire on various dates through <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 2028. </div>Terms of the leases provide for monthly payments ranging from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$900</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$19,800.</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">  The Company incurred rent expense totaling approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.5</div> million and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.4</div> million for the years ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> respectively. Future annual minimum payments under non-cancelable operating leases are as follows (in thousands):</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div> <table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 85%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.8pt;margin-top:0pt;text-align:left;">For the years ended June 30,</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.8pt;margin-top:0pt;text-align:left;">2018</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">725</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.8pt;margin-top:0pt;text-align:left;">2019</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">669</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.8pt;margin-top:0pt;text-align:left;">2020</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">592</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">2021</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">414</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">2022</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">400</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.8pt;margin-top:0pt;text-align:left;">Thereafter</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,323</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;text-indent:9pt;">Total operating lease obligations</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,123</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </table> </div></div>

0.0001

18000000

12313000

13199000

12308000

12410000

1000

4280000

1808000

0.63

0.35

0.01

0.7

0.28

0.01

14193000

14598000

473000

19000

-162000

603000

-131000

111000

31000

0.0275

0.0325

8217000

1150000

8217000

8550000

78000

monthly

133333

158333

175000

-1550000

97000

91000

156000

320000

-1523000

359000

993000

546000

1477000

939000

534000

273000

-129000

3706000

4950000

1679000

2700000

1549000

2759000

36000

1000

9000

63000

67000

329000

274000

1716000

4939000

682000

535000

165000

100000

200000

0.03

100000

300000

231000

370000

537000

648000

0.39

0.29

0.39

0.28

<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Basic and Diluted Earnings Per Share</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Basic earnings per share (“BEPS”) is computed by dividing the net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share (“DEPS”) is computed giving effect to all dilutive potential common shares outstanding during the period. Dilutive potential common shares consist of incremental shares issuable upon the exercise of stock options and warrants using the “treasury stock” method. The computation of DEPS does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> assume conversion, exercise or contingent exercise of securities that would have an anti-dilutive effect on earnings. For the year<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">s ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> there were common share equivalents of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">54,008</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">175,863,</div> respectively, included in the computation of the DEPS. For the years ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">503,951</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">691,505</div> shares of common stock, respectively, vest based on the market price of the Company’s common stock and were excluded from the computation of DEPS because the shares have <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> vested, but <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> stock options were excluded from the computation of DEPS. </div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:7.5pt;margin-top:0pt;text-align:center;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computation<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">s for the years ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30 (</div>in thousands, except for per share amounts):</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div> <table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">2017</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">2016</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Numerator:</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Net income</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,578</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,552</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Denominator:</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 27pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:27pt;margin-right:0pt;margin-top:0pt;text-align:left;">Basic weighted-average shares outstanding</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11,732</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,314</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 27pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:27pt;margin-right:0pt;margin-top:0pt;text-align:left;">Effect of dilutive securities</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">54</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">176</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 27pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:27pt;margin-right:0pt;margin-top:0pt;text-align:left;">Diluted weighted-average diluted shares</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11,786</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,490</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Basic earnings per common share</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.39</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.29</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Diluted earnings per common share</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.39</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.28</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </table> </div></div></div></div></div></div>

-91000

-505000

815000

1188000

200000

P2Y36D

-1077000

P3Y

P10Y

P9Y

P10Y

P20Y

P10Y

P9Y

P10Y

P9Y

P10Y

P20Y

P10Y

P3Y

P10Y

1061000

527000

255000

159000

2697000

4699000

1093000

543000

262000

83000

2653000

4634000

706000

873000

898000

953000

1061000

527000

255000

798000

10331000

12972000

1093000

543000

262000

822000

7887000

10607000

639000

7634000

8273000

739000

5234000

5973000

639000

739000

175000

158000

5505000

5658000

202000

9202000

8363000

8191000

202000

-1041000

-172000

17403000

17614000

935000

246000

2723000

3495000

3658000

3741000

<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">NOTE <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6.</div> INCOME TAXES</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The Company is subject to taxation in the US,<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> UK and various US state jurisdictions. The Company’s tax years for <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1999</div> and forward are subject to examination by the US and state tax authorities due to losses incurred since inception. The Company is currently <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> under any material examination by any taxing authorities.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The Company follows the provisions of ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">740</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,</div> <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic;">Income Taxes</div>, that defines a recognition threshold and measurement attributes for the financial recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">740</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div> also provides guidance on the de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. Under ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">740</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,</div> the impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> be recognized if it has less than a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">50%</div> likely of being sustained.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The Company does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have any unrecognized tax benefits that, if recognized, would affect the effective tax rate.</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The Company<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">’s practice is to recognize interest and/or penalties related to income matters in income tax expense. During the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017, </div>the Company recognized penalties of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.1</div></div> million. There were <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"></div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> </div>interest and penalties recognized by the Company for the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2016.</div></div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Income (<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">loss) before income taxes for the years ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> was taxed under the following jurisdictions (in thousands):</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div> <table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="6" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: thin solid rgb(0, 0, 0);">As of </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">June 30, 2017</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">June 30, 2016</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">United States<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> of America</div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">935</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">246</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">United Kingdom</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,723</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,495</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,658</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,741</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </table> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The provision (benefit) for income taxes consists of the following for the years ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">201</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> (in thousands):</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div> <table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:1.8pt;margin-top:0pt;text-align:center;">US<br /> <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Federal</div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:1.8pt;margin-top:0pt;text-align:center;">US<br /> <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">State</div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:1.8pt;margin-top:0pt;text-align:center;">UK<br /> <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">Corporate</div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:1.8pt;margin-top:0pt;text-align:center;">Total</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.8pt;margin-top:0pt;text-align:left;"><div style="display: inline; font-weight: bold;">2017</div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.8pt;margin-top:0pt;text-align:left;">Current</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">473</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">111</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">19</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">603</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.8pt;margin-top:0pt;text-align:left;">Deferred</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,550</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(129</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">156</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,523</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.8pt;margin-top:0pt;text-align:left;"><div style="display: inline; font-weight: bold;">Total</div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,077</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(18</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">175</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(920</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.8pt;margin-top:0pt;text-align:left;"><div style="display: inline; font-weight: bold;">2016</div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.8pt;margin-top:0pt;text-align:left;">Current</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-weight: bold;">$</div></td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-weight: bold;">-</div></div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(162</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(131</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.8pt;margin-top:0pt;text-align:left;">Deferred</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">320</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">320</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.8pt;margin-top:0pt;text-align:left;"><div style="display: inline; font-weight: bold;">Total</div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">31</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">158</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">189</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </table> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div><div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 9pt;text-align:justify;"></div><div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 9pt;text-align:justify;">As stated in the recent accounting pronouncements, the Company early adopted ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09.</div>  As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2016, </div>prior to the adoption of ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2019</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> the Company had excess tax benefits for which benefits could <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> be previously recognized of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.7</div> million, due to net operating loss carryforwards resulting from the windfall tax benefits.  On <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2016, </div>upon the effective date of the adoption, the Company recognized the previously unrecognized excess tax benefits of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.7</div> million with an offsetting increase in the Company’s valuation allowance using a modified retrospective method through a cumulative effect adjustment to the accumulated deficit, with <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> net impact on the Company’s financial statements.</div></div> <div style=" background-color:#FFFFFF;font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 9pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">At <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">201</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,</div> the Company had net US deferred tax assets of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2.7</div> million. Due to uncertainties surrounding the Company’s ability to generate future capital gains, a valuation allowance has been established to offset carry-forwards of its capital losses due to investments previously written off. Additionally, the future utilization of the Company’s federal and state NOLs to offset future taxable income have been determined to be subject to annual limitation pursuant to Internal Revenue Code (“IRC”) Sections <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">382</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">383</div> as a result of ownership changes that have previously occurred.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:center;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Through its Section <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">382</div> study, the Company has analyzed any NOLs from its acquired subsidiaries to determine the maximum potential future tax benefit that might be available, and the corresponding limitation imposed based on IRC Section <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">382.</div> As a result, by the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2011, </div>the Company adjusted the aforementioned net operating losses previously estimated. The outcome resulted in a determination that it could utilize, annually, approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div> million of previously incurred NOLs; presuming, however, there is taxable income in future periods affording utilization prior to expiration.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">At <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">201</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,</div> the Company had combined federal and state NOLs of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4.4</div> million and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$2.6</div> million, respectively. The federal and state tax loss carry-forwards will begin to expire in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2019</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2024,</div> respectively, unless previously utilized.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Significant components of the Company<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">’s net deferred tax assets at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> are shown below. A valuation allowance of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$1.7</div> million and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$4.9</div> million has been established to offset the net deferred tax assets as of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> respectively. The <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3.2</div> million net decrease in the valuation allowance for the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>is primarily attributable to the partial release of the valuation allowance during the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017. </div>The Company released the valuation allowance on all of its domestic deferred tax assets, except for capital loss carry-forwards that are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> more likely than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> to be realized. </div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" background-color:#FFFFFF;font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 9pt;text-align:justify;">Included in the Company<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">’s current year tax benefit for the change in valuation allowance of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$3.9M</div> is the excess tax benefit of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.7</div> million. </div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The tax effects of temporary differences and carry-forwards that give rise to significant portions of deferred tax assets (liabilities) consist of the following at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">201</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> (in thousands):</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div> <table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">June 30,</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">June 30,</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">2017</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">2016</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;">Deferred tax assets:</div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">State taxes</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">36</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Net operating loss carry-forwards</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,549</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2,759</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Write-down of investments</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,716</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,745</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Equity-based compensation</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">63</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">67</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Reserves and accruals</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">329</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">274</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Deferred rent</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Tax credits</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Domestic intangibles and other long-lived assets</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">101</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;">Total deferred tax assets</div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,706</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,950</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;">Deferred tax liabilities:</div></div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-weight: bold;"> </div></td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Foreign<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> intangible and other long-lived assets</div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(718</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(546</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Domestic i<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">ntangible and other long-lived assets</div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(110</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Unremitted foreign earnings</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(165</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;">Total deferred tax liabilities</div></div> </td> <td style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; border-bottom: 1px rgb(0, 0, 0); text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(993</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> <td style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; border-bottom: 1px rgb(0, 0, 0); text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(546</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Valuation allowance</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,716</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(4,939</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;">Net deferred tax </div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-weight: bold;">assets (</div><div style="display: inline; font-weight: bold;">liabilities</div><div style="display: inline; font-weight: bold;">)</div></div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">997</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(535</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> </tr> </table> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:center;"></div><div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The provision<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> (benefit) for income taxes for the years ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> differs from the amount computed by applying the US federal income tax rates to net income from continuing operations before taxes as a result of the following (in thousands):</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div> <table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="6" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">June 30,</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">2017</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">2016</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; width: 70%;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Taxes at federal statutory rates</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,244</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,272</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">State taxes, net of federal benefit</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">93</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Rate changes</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">289</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(19</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;">Unrecognized tax benefits</td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">88</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Permanent items and other</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">116</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">100</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Research and development</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(333</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(577</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">NOL expiration</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Differential in UK corporate tax rate</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(388</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(515</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Unremitted foreign earnings</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">164</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Stock compensation</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(237</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Foreign dividends</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9,452</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Foreign tax credits</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(7,522</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">Change in valuation allowance</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(3,889</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(80</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;">(Benefit) <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">provision for income taxes</div></div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(920</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">189</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </table> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">During the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2016, </div>the Company completed a formal research and development expense study in the UK and identified qualifying expenses related to the prior years which resulted in a reduction in the tax provision of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.2</div> million, which is included in the rate reconciliation above.</div></div>

100000

-700000

-920000

189000

-3889000

-80000

-388000

-515000

1244000

1272000

-237000

164000

93000

8000

88000

7522000

200000

333000

577000

11000

665000

168000

535000

-264000

-215000

386000

881000

593000

514000

-988000

816000

478000

-314000

183000

-352000

535000

169000

70000

6000

-42000

-559000

-276000

413000

221000

384000

221000

16977000

17335000

26652000

22354000

8792000

8186000

2500000

2750000

9500000

8750000

8120000

9687000

1734000

1879000

1775000

225000

2100000

2017000

6386000

7808000

-1840000

-5623000

-2825000

-3419000

5525000

3245000

4578000

3552000

4578000

<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:7.5pt;margin-top:0pt;text-align:justify;text-indent:7.5pt;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-weight: bold;">Recent Accounting Pronouncements</div></div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-style: italic;">Recently Adopted Accounting Standards</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 2016, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> <div style="display: inline; font-style: italic;">Improvements to Employee Share-Based Payment Accounting.</div> As required by ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> excess tax benefits recognized on stock-based compensation expense are reflected in the Company’s consolidated statements of comprehensive income as a component of the provision for income taxes on a prospective basis. Excess tax benefits are classified as an operating activity in our consolidated statements of cash flows and we have applied this provision on a retrospective basis. We elected to early adopt this standard in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">fourth</div> quarter of our fiscal year that began <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2016. </div>As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2016, </div>we had excess tax benefits for which benefits could <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> be previously recognized of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.7</div> million, due to net operating loss carryforwards resulting from the windfall tax benefits. Upon adoption, we recognized the previously unrecognized excess tax benefits of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.7</div> million with an offsetting increase in our valuation allowance using a modified retrospective method through a cumulative effect adjustment to the accumulated deficit, with <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> net impact on our financial statements at the effective date of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2016. </div>In addition, we have elected to account for forfeitures as they occur, rather than estimate expected forfeitures over the course of a vesting period. There was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> additional impact to the Company’s consolidated financial statements as a result of adopting ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09.</div></div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 2015, </div>the FASB issued <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17,</div> <div style="display: inline; font-style: italic;">Balance Sheet C</div><div style="display: inline; font-style: italic;">lassification of Deferred Taxes</div>, an update to ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">740,</div> Income Taxes (“Update”). Current GAAP requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. To simplify the presentation of deferred income taxes, the amendments in this Update require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> affected by the amendments in this update. For public business entities, the amendments in this Update are effective for financial statements issued for annual periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2016, </div>and interim periods within those annual periods. The Update permits earlier application by all entities as of the beginning of any interim or annual reporting period. This Update <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be applied to all deferred tax liabilities and assets prospectively. The Company chose to adopt the Update prospectively beginning in the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017.</div></div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div><div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;"></div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-style: italic;"> Accounting Standards <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">Not</div> Yet Adopted</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-style: italic;"> </div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2017, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> <div style="display: inline; font-style: italic;">Compensation - Stock Compensation (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">718</div>): Scope of Modification Accounting</div>, which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in ASC Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">718.</div> Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09</div> will be effective for the Company for the fiscal year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2019 </div>and interim reporting periods within that year. Early adoption is permitted. The Company expects the adoption of this guidance will <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have a material effect on the Company’</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">s consolidated financial statements.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2017, </div>the FASB issued<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">04,</div> <div style="display: inline; font-style: italic;">Intangibles-Goodwill and Other (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">350</div>): Simplifying the Test for Goodwill Impairment</div>. This update simplifies the subsequent measurement of goodwill by eliminating step <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> from the goodwill impairment test. Under the new guidance, an entity performs its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> to exceed the carrying amount of goodwill allocated to the reporting unit. ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">04</div> will be effective for the Company for the fiscal year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2021. </div>Early adoption is permitted. The Company does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> expect the adoption of ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">04</div> to have a significant impact on its consolidated financial statements. </div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 2016, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> <div style="display: inline; font-style: italic;">Statement of Cash Flows (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">230</div>), Classification of Certain Cash Receipts and Cash Payments</div>.  The update provides guidance for how certain cash receipts and cash payments are to be presented on the statement of cash flows.  ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15</div> will be effective for the Company beginning the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> quarter of fiscal <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018.</div>  Early adoption is permitted. ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15</div> is to be adopted using the retrospective transition method, unless it is impracticable, in which case it can be applied prospectively as of the earliest practical date. The Company does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> expect the adoption of ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15</div> to have a significant impact on the disclosure or cash flow presentation in its consolidated financial statements.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 2016, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">02,</div> <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic;">Leases</div>. The update requires lessees to present right-of-use assets and lease liabilities on the balance sheet for all leases with terms longer than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12</div> months. The guidance is to be applied using a modified retrospective approach at the beginning of the earliest comparative period in the financial statements and will be effective for the Company for the fiscal year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2021. </div>The Company is currently assessing the impact the adoption of ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">02</div> will have on its consolidated financial statements.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2014, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic;">, Revenue from Contracts with Customers </div>(Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606</div>), which amends the existing accounting standards for revenue recognition. ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09</div> is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> the FASB provided a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div>-year delay in the effective date of ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> to be effective for annual reporting periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> including interim periods within that reporting period, and a permission to early adopt for annual and interim periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016.</div></div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> The Company has performed a review of the new revenue standard and is monitoring the activity of the FASB and the transition resource group as it relates to specific interpretative guidance. The Company is assessing the impact of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">five</div>-step model of the new standard on its contracts compared to the results of current accounting practice.  The Company plans to adopt ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09</div> on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2018. </div>The Company has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> yet determined whether it will adopt the provisions of ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09</div> on a retrospective basis or through a cumulative adjustment to retained earnings. The new standard could change the amount and timing of revenue and costs under certain arrangement types and could increase the administrative burden on the Company’s operations to properly account for customer contracts and provide the more expansive required disclosures. The Company is currently evaluating the impact of adopting ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> but has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> yet determined what effect, if any, the new guidance will have on its consolidated financial position, results of operations or cash flows.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 2014, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic;">Presentation of Financial Statements-Going Concern</div>. Currently, there is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> guidance in accounting principles generally accepted in the US about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related footnote disclosures. The amendments require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in US auditing standards. Specifically, the amendments (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div>) provide a definition of the term substantial doubt, (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div>) require an evaluation every reporting period including interim periods, (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div>) provide principles for considering the mitigating effect of management’s plans, (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div>) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div>) require an express statement and other disclosures when substantial doubt is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> alleviated, and (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6</div>) require an assessment for a period of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> year after the date that the financial statements are issued (or available to be issued). The amendments in this ASU are effective for the reporting periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2016 </div>and early application is permitted. The Company is currently assessing the impact the adoption of ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15</div> will have on its consolidated financial statements.</div></div></div></div></div></div></div>

-559000

-59000

13186000

13814000

4217000

3800000

4123000

725000

400000

414000

592000

669000

1323000

500000

400000

4400000

2600000

109000

68000

-298000

-1744000

-298000

583000

533000

15000000

144000

123000

150000

503000

453000

96000

207000

2729000

2759000

0.0001

2000000

1433000

1495000

91000

9519000

10729000

10500000

16300

16000

396000

928000

869000

10000

476000

477000

1810000

1752000

511000

581000

P3Y

P5Y

283000

257000

11081000

950000

3791000

3777000

-1207000

-5785000

761000

750000

31596000

32212000

<div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%; vertical-align: middle;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> </td> <td style="font-family: "Times New Roman",Times,serif; font-size: 10pt; width: 1%;"> </td> <td colspan="3" style="text-align: center; font-family: "Times New Roman",Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom: thin solid rgb(0, 0, 0); width: 33%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Average Estimated Useful Life (in years)</div> </td> <td style="font-family: "Times New Roman",Times,serif; font-size: 10pt; padding-bottom: 1px; width: 1%;"> </td> <td style="font-family: "Times New Roman",Times,serif; font-size: 10pt; width: 1%;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman",Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom: thin solid rgb(0, 0, 0); width: 1%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Gross Carrying Amount</div> </td> <td style="font-family: "Times New Roman",Times,serif; font-size: 10pt; padding-bottom: 1px; width: 1%;"> </td> <td style="font-family: "Times New Roman",Times,serif; font-size: 10pt; width: 1%;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman",Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom: thin solid rgb(0, 0, 0); width: 1%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Accumulated Amortization</div> </td> <td style="font-family: "Times New Roman",Times,serif; font-size: 10pt; padding-bottom: 1px; width: 1%;"> </td> <td style="font-family: "Times New Roman",Times,serif; font-size: 10pt; width: 1%;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman",Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom: thin solid rgb(0, 0, 0); width: 1%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Net Carrying Amount</div> </td> <td style="font-family: "Times New Roman",Times,serif; font-size: 10pt; padding-bottom: 1px; width: 1%;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman",Times,serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Completed software technology</div> </td> <td style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 3%; border-bottom: 1px none rgb(0, 0, 0); font-family: "Times New Roman",Times,serif; font-size: 10pt; text-align: right;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9</div></td> <td style="width: 3%; border-bottom: 1px none rgb(0, 0, 0); font-family: "Times New Roman",Times,serif; font-size: 10pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">to</div></td> <td style="width: 3%; border-bottom: 1px none rgb(0, 0, 0); font-family: "Times New Roman",Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; border-bottom: 1px rgb(0, 0, 0); text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,061</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; border-bottom: 1px rgb(0, 0, 0); text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,061</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> <td style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; border-bottom: 1px rgb(0, 0, 0); text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman",Times,serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Customer contracts / relationships</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 3%; font-family: "Times New Roman",Times,serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 3%; font-family: "Times New Roman",Times,serif; font-size: 10pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div></td> <td style="width: 3%; text-align: right; font-family: "Times New Roman",Times,serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">527</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(527</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman",Times,serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Automotive data services</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 3%; font-family: "Times New Roman",Times,serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 3%; font-family: "Times New Roman",Times,serif; font-size: 10pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">20</div></td> <td style="width: 3%; text-align: right; font-family: "Times New Roman",Times,serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">255</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(255</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman",Times,serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Acquired intellectual property</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 3%; font-family: "Times New Roman",Times,serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 3%; font-family: "Times New Roman",Times,serif; font-size: 10pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div></td> <td style="width: 3%; text-align: right; font-family: "Times New Roman",Times,serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">798</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(159</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">639</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman",Times,serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Software development costs</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 3%; font-family: "Times New Roman",Times,serif; font-size: 10pt; text-align: right;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div></td> <td style="width: 3%; font-family: "Times New Roman",Times,serif; font-size: 10pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">to</div></td> <td style="width: 3%; font-family: "Times New Roman",Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,331</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(2,697</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,634</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman",Times,serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Total</div> </td> <td style="font-family: "Times New Roman",Times,serif; font-size: 10pt; width: 1%;"> </td> <td style="font-family: "Times New Roman",Times,serif; font-size: 10pt; width: 3%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-family: "Times New Roman",Times,serif; font-size: 10pt; width: 3%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="text-align: right; font-family: "Times New Roman",Times,serif; font-size: 10pt; width: 3%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-family: "Times New Roman",Times,serif; font-size: 10pt; padding-bottom: 3px; width: 1%;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,972</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(4,699</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,273</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </table></div><div style="display: inline; font-family: times new roman; font-size: 10pt"><table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px; min-; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"> </div> </td> <td style="font-family: "Times New Roman",Times,serif; font-size: 10pt; width: 1%;"> </td> <td colspan="3" style="text-align: center; font-family: "Times New Roman",Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 33%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Average Estimated Useful Life (in years)</div> </td> <td style="font-family: "Times New Roman",Times,serif; font-size: 10pt; padding-bottom: 1px; width: 1%;"> </td> <td style="font-family: "Times New Roman",Times,serif; font-size: 10pt; width: 1%;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman",Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 1%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Gross Carrying Amount</div> </td> <td style="font-family: "Times New Roman",Times,serif; font-size: 10pt; padding-bottom: 1px; width: 1%;"> </td> <td style="font-family: "Times New Roman",Times,serif; font-size: 10pt; width: 1%;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman",Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 1%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Accumulated Amortization</div> </td> <td style="font-family: "Times New Roman",Times,serif; font-size: 10pt; padding-bottom: 1px; width: 1%;"> </td> <td style="font-family: "Times New Roman",Times,serif; font-size: 10pt; width: 1%;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman",Times,serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0); width: 1%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">Net Carrying Amount</div> </td> <td style="font-family: "Times New Roman",Times,serif; font-size: 10pt; padding-bottom: 1px; width: 1%;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman",Times,serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Completed software technology</div> </td> <td style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 3%; border-bottom: 1px none rgb(0, 0, 0); font-family: "Times New Roman",Times,serif; font-size: 10pt; text-align: right;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9</div></td> <td style="width: 3%; border-bottom: 1px none rgb(0, 0, 0); font-family: "Times New Roman",Times,serif; font-size: 10pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">to</div></td> <td style="width: 3%; border-bottom: 1px none rgb(0, 0, 0); font-family: "Times New Roman",Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; border-bottom: 1px rgb(0, 0, 0); text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1,093</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; border-bottom: 1px rgb(0, 0, 0); text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,093</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> <td style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 9%; border-bottom: 1px rgb(0, 0, 0); text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; border-bottom: 1px rgb(0, 0, 0); font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman",Times,serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Customer contracts / relationships</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 3%; font-family: "Times New Roman",Times,serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 3%; font-family: "Times New Roman",Times,serif; font-size: 10pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div></td> <td style="width: 3%; text-align: right; font-family: "Times New Roman",Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">543</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(543</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman",Times,serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Automotive data services</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 3%; font-family: "Times New Roman",Times,serif; font-size: 10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 3%; font-family: "Times New Roman",Times,serif; font-size: 10pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">20</div></td> <td style="width: 3%; text-align: right; font-family: "Times New Roman",Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">262</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(262</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">-</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman",Times,serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Acquired intellectual property</div> </td> <td style="width: 1%;"> </td> <td style="width: 3%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="width: 3%; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div></td> <td style="width: 3%; text-align: right;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td nowrap="nowrap" style="width: 1%; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">822</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(83</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">739</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman",Times,serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Software development costs</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 3%; font-family: "Times New Roman",Times,serif; font-size: 10pt; text-align: right;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div></td> <td style="width: 3%; font-family: "Times New Roman",Times,serif; font-size: 10pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">to</div></td> <td style="width: 3%; font-family: "Times New Roman",Times,serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,887</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(2,653</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,234</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman",Times,serif; font-size: 10pt; margin-left: 0pt; width: 52%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;"><div style="display: inline; font-weight: bold;">Total</div></div> </td> <td style="font-family: "Times New Roman",Times,serif; font-size: 10pt; width: 1%;"> </td> <td style="font-family: "Times New Roman",Times,serif; font-size: 10pt; width: 3%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-family: "Times New Roman",Times,serif; font-size: 10pt; width: 3%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="text-align: right; font-family: "Times New Roman",Times,serif; font-size: 10pt; width: 3%;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> </div></td> <td style="font-family: "Times New Roman",Times,serif; font-size: 10pt; padding-bottom: 3px; width: 1%;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10,607</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(4,634</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 3px;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 9%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5,973</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </table></div>

3659000

4009000

375000

383000

P3Y

187000

0.35

776000

504000

294000

82000

48000

32000

0.87

0.94

0.48

1.25

1.79

85000

0.39

68000

1.30

300000

338000

121000

68000

1.23

1.30

68000

1.30

338000

1.13

338000

P4Y

15027000

-760000

13199000

-790000

12313000

-5000

26535

60612

61000

26000

<div style="display: inline; font-family: times new roman; font-size: 10pt"><div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">NOTE <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.</div> SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;"></div></div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Basis of Presentation</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">MAM Software Group, Inc. ("MAM" or<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> the "Company") is a leading provider of integrated information management solutions and services and a leading provider of cloud-based software solutions for the automotive aftermarket sector. The Company conducts its businesses through wholly owned subsidiaries with operations in Europe and North America. MAM Software Ltd. (“MAM Ltd.”) is based in Tankersley, Barnsley, United Kingdom (“UK”), Origin Software Solutions, Ltd. (“Origin”) is based in the UK (MAM Ltd. and Origin are collectively referred to as “MAM UK”), and MAM Software, Inc. (“MAM NA”) is based in the United States of America ("US") in Blue Bell, Pennsylvania.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">   </div></div></div><div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"></div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Principles of Consolidation</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The consolidated financial statements of the Company include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in the consolidated financial statements.</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Concentrations of Credit Risk</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The Company has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> significant off-balance-sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements.</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Cash and Cash Equivalents</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">In the US, the Company maintains cash balances at financial institutions that are insured by the Federal Deposit Insurance Corporation up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$250,000.</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">  At times deposits held with financial institutions in the US <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>exceed the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$250,000</div> limit.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">In the UK, the Company maintains cash balances at financial institutions that are insured by the Financial Services Compensation Scheme up to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">85,000GBP.</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">  At times deposits held with financial institutions in the UK <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>exceed the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">85,000GBP</div> limit.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The Company maintains its cash accounts at financial institutions which it believes to be credit worthy. The Company considers all highly liquid debt instruments purchased with original maturities of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> months or less to be cash equivalents to the extent the funds are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> being held for investment purposes.</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Customers</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The Company performs periodic evaluations of its customers and maintains allowances for potential credit losses as deemed necessary. The Company generally does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> require collateral to secure its accounts receivable. Credit risk is managed by discontinuing sales to customers who are delinquent. The Company estimates credit losses and returns based on management<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">’s evaluation of historical experience and current industry trends. Although the Company expects to collect amounts due, actual collections <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>differ from the estimated amounts.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"></div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No</div> </div>customers<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> accounted for more than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10%</div> of the Company’s revenues for each of the years ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"></div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No</div> </div>customers accounted for more than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10%</div> of the Company’s accounts receivable at <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016.</div></div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Segment Reporting</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The Company operates in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> reportable segment.<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">  Though the Company has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> operational segments (MAM UK and MAM NA), the Company evaluated these segments in accordance with ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">280</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">50,</div> <div style="display: inline; font-style: italic;">Segment Reporting, </div>and determined that the segments have the same economic characteristics, are similar in the following areas and can therefore be aggregated into <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> reportable segment:</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <table border="0px" cellpadding="0pt" cellspacing="0pt" style="; text-indent: 0px; font-size: 10pt; margin: 0pt 1%; min-width: 700px;"> <tr> <td style="vertical-align:middle;width:4.6%;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.</div></div> </td> <td style="vertical-align:middle;width:95.4%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The products and services are software and professional services</div> </td> </tr> <tr> <td style="vertical-align:middle;width:4.6%;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2.</div></div> </td> <td style="vertical-align:middle;width:95.4%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The products are produced through professional services</div> </td> </tr> <tr> <td style="vertical-align:middle;width:4.6%;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3.</div></div> </td> <td style="vertical-align:middle;width:95.4%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The customers for these products are primarily for the automotive aftermarket</div> </td> </tr> <tr> <td style="vertical-align:middle;width:4.6%;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4.</div></div> </td> <td style="vertical-align:middle;width:95.4%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">The method to distribute these products are via software that the customer can host locally or the Company will host</div> </td> </tr> <tr> <td style="vertical-align:middle;width:4.6%;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5.</div></div> </td> <td style="vertical-align:middle;width:95.4%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:justify;">They both operate in a non-regulatory environment</div> </td> </tr> </table> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Geographic Concentrations</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The Company conducts business in the US<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> and Canada (US and Canada are collectively referred to as the “NA Market”), and the UK and Ireland (UK and Ireland are collectively referred to as the “UK Market”). For customers headquartered in their respective countries, the Company derived approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">63%</div> of its revenues from the UK, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">35%</div> from the US, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1%</div> from Ireland, and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1%</div> from Canada during the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017, </div>compared to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">70%</div> of its revenues from the UK, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">28%</div> from the US, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1%</div> from Ireland, and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1%</div> from Canada during the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2016.</div></div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">At <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">201</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,</div> the Company maintained <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">76%</div> of its net property and equipment in the UK and the remaining <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">24%</div> in the US.  At <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2016, </div>the Company maintained <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">79%</div> of its net property and equipment in the UK and the remaining <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">21%</div> in the US. </div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Use of Estimates</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> US requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates made by the Company’s management include, but are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> limited to, the collectability of accounts receivable, the realizability of inventories, the determination of the fair value of acquired intangible assets, the recoverability of goodwill and other long-lived assets, valuation of deferred tax assets and liabilities and the estimated fair value of stock options, warrants and shares issued for non-cash consideration. Actual results could materially differ from those estimates. </div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Fair Value of Financial Instruments</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The Company<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">’s financial instruments consist principally of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, and other liabilities, and long-term debt. Financial assets and liabilities that are remeasured and reported at fair value at each reporting period are classified and disclosed in <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> of the following <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> categories:</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;">•<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> – Fair value based on quoted prices in active markets for identical assets or liabilities.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:43.5pt;margin-right:7.5pt;margin-top:0pt;text-align:justify;">•<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div> – Fair value based on significant directly observable data (other than Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div> quoted prices) or significant indirectly observable data through corroboration with observable market data. Inputs would normally be (i) quoted prices in active markets for similar assets or liabilities, (ii) quoted prices in inactive markets for identical or similar assets or liabilities or (iii) information derived from or corroborated by observable market data.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:43.5pt;margin-right:7.5pt;margin-top:0pt;text-align:justify;">•<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> Level <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div> – Fair value based on prices or valuation techniques that require significant unobservable data inputs. Inputs would normally be a reporting entity’s own data and judgments about assumptions that market participants would use in pricing the asset or liability.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Determining which category an asset or liability falls within the hierarchy <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>require significant judgment. The Company evaluates its hierarchy disclosures each quarter. The Company believes that the carrying values of all financial instruments, except long-term debt, approximate their values due to their nature and respective durations.<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">  The carrying value of long-term debt approximates fair value based on borrowing rates currently available to the Company.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Allowance for Doubtful Accounts</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. The allowance for doubtful accounts is based on specific identification of customer accounts and its best estimate of the likelihood of potential loss, taking into account such factors as the financial condition and payment history of major customers. The Company evaluates the collectability of its receivables at least quarterly. The allowance for doubtful accounts is subject to estimates based on the historical actual costs of bad debt experienced, total accounts receivable amounts, age of accounts receivable and any knowledge of the customers<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">’ ability or inability to pay outstanding balances. If the financial condition of the Company's customers were to deteriorate, resulting in impairment of their ability to make payments, additional allowances <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be required. The differences could be material and could significantly impact cash flows from operating activities.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Inventories</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Inventories are stated at the lower of cost or current estimated market value. Cost is determined using the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div>-in, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div>-out method. Inventories consist primarily of hardware that will be sold to customers. The Company periodically reviews its inventories and records a provision for excess and obsolete inventories based primarily on the Company<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">’s estimated forecast of product demand. Once established, write-downs of inventories are considered permanent adjustments to the cost basis of the obsolete or excess inventories.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:center;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Property and Equipment</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Property and equipment are stated at cost, and are depreciated using the straight-line method over the estimated useful lives of the related assets, ranging from <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">five</div> years. Leasehold improvements are amortized using the straight-line method over the lesser of the estimated useful lives of the assets or the related lease terms. Equipment under capital lease obligations is depreciated over the shorter of the estimated useful lives of the related assets or the term of the lease. Maintenance and routine repairs are charged to expense as incurred. Significant renewals and betterments are capitalized. At the time of retirement or other disposition of property and equipment, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of comprehensive income.</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">S</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-weight: bold;">oftware Development Costs</div></div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Costs incurred to develop computer software products to be sold or otherwise marketed are charged to expense until technological feasibility of the product has been established. Once technological feasibility has been established, computer software development costs (consisting primarily of internal labor costs) are capitalized and reported at the lower of amortized cost or estimated realizable value. Purchased software development cost is capitalized and recorded at its estimated fair market value. When a product is ready for general release, its capitalized costs are amortized on a product-by-product basis. The annual amortization is the greater of the amounts of:<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">  the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product and, the straight-line method over the remaining estimated economic life (a period of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">three</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">ten</div> years) of the product including the period being reported on. Amortization of capitalized software development costs are included in the cost of revenues line on the consolidated statements of comprehensive income.  If the future market viability of a software product is less than anticipated, impairment of the related unamortized development costs could occur, which could significantly impact the Company’s results of operations.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Amortizable Intangible Assets</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Amortizable intangible assets consist of completed software technology, customer<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> contracts/relationships, automotive data services, and acquired intellectual property and are recorded at cost. Completed software technology and customer contracts/relationships are amortized using the straight-line method over their estimated useful lives of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9</div> to <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div> years, automotive data services are amortized using the straight-line method over their estimated useful lives of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">20</div> years and acquired intellectual property is amortized over the estimated useful life of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">10</div> years.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Goodwill</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Goodwill is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> amortized, but rather is tested at least annually for impairment.</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Goodwill is subject to impairment reviews by applying a fair-value-based test at the reporting unit level, which generally represents operations <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> level below the segments reported by the Company. As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">201</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7,</div> the Company does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> believe there is an impairment of its goodwill. There can be <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> assurance, however, that market conditions will <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> change or demand for the Company’s products and services will continue, which could result in impairment of goodwill in the future.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Goodwill activity for the years ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">201</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> was as follows (in thousands):</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div> <table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 85%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.8pt;margin-top:0pt;text-align:left;"> </div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;"> </div></td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;"> </div></td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;"> </div></td> </tr> <tr style="vertical-align: bottom;"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.8pt;margin-top:0pt;text-align:left;">Balance, July 1, 2015</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">9,202</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Acquisition of Origin (see Note 2)</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">202</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Effect of exchange rate changes</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(1,041</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.8pt;margin-top:0pt;text-align:left;">Balance, June 30, 2016</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,363</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.8pt;margin-top:0pt;text-align:left;">Effect of exchange rate changes</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">(172</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; padding-bottom: 1px;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">)</div> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.8pt;margin-top:0pt;text-align:left;">Balance, June 30, 2017</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">8,191</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </table> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Long-Lived Assets</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The Company<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">’s management assesses the recoverability of long-lived assets (other than goodwill discussed above) upon the occurrence of a triggering event by determining whether the carrying value of long-lived assets over their remaining lives can be recovered through projected undiscounted future cash flows over their remaining useful lives. The amount of long-lived asset impairment, if any, is measured based on fair value and is charged to operations in the period in which long-lived asset impairment is determined by management. At <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017, </div>management believes there is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> impairment of its long-lived assets. There can be <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> assurance, however, that market conditions will <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> change or demand for the Company’s products and services will continue, which could result in impairment of long-lived assets in the future.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:center;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Debt Issuance Costs</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Debt issuance costs represent costs incurred in connection with the issuance of long-term debt.<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">  Debt issuance costs are amortized over the term of the financing instrument using the effective interest method.  Debt issuance costs are presented in the condensed consolidated balance sheets as an offset against the current and non-current portions of long-term debt.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Issuance of Equity Instruments to Non-Employees</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">All issuances of the Company<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">’s equity instruments to non-employees are measured at fair value based upon either the fair value of the equity instruments issued or the fair value of consideration received, whichever is more readily determinable. The majority of stock issuances for non-cash consideration pertains to services rendered by consultants and others and has been valued at the fair value of the equity instruments on the dates issued.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The measurement date for the fair value of the equity instruments issued is determined at the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached or (ii) the date at which the consultant or vendor<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">’s performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement.  Assets acquired in exchange for the issuance of fully vested, non-forfeitable equity instruments are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> presented or classified as an offset to equity on the grantor’s balance sheet once the equity instrument is granted for accounting purposes.  </div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Stock-Based Compensation</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The Company accounts for stock-based compensation under the provisions of ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">No.</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">718,</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic;"> Compensation - Stock Compensation</div> (“ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">718”</div>). ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">718</div> requires the recognition of the fair value of the stock-based compensation in net income. Compensation expense associated with market-based restricted stock is determined using a Monte-Carlo valuation model, and compensation expense associated with time-based restricted stock is determined based on the number of shares granted and the fair value on the date of grant. For valuing stock options awards, the Company has elected to use the Black-Scholes model. For the expected term, the Company uses a simple average of the vesting period and the contractual term of the option. Volatility is a measure of the amount by which the Company’s stock price is expected to fluctuate during the expected term of the option. For volatility the Company considers its own volatility as applicable for valuing its options and warrants. With the adoption of ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09</div> during the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017, </div>forfeitures will be accounted prospectively for as they are incurred, rather than estimated at time of grant. The risk-free interest rate is based on the relevant US Treasury Bill Rate at the time of each grant. The dividend yield represents the dividend rate expected to be paid over the option’s expected term; the Company currently has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> plans to pay dividends.  The fair value of stock-based awards is amortized over the vesting period of the award or expected vesting date of the market-based restricted shares and the Company elected to use the straight-line method for awards granted.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Revenue Recognition</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Software license revenue is recognized when persuasive evidence of an arrangement exists, delivery of the product component has occurred, the fee is fixed and determinable, and collectability is reasonably assured. If any of these criteria are <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> met, revenue recognition is deferred until such time as all of the criteria are met.</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The Company accounts for delivered elements in accordance with the selling price when arrangements include multiple product components or other elements and vendor-specific objective evidence exists for the value of all undelivered elements. Revenues on undelivered elements are recognized once delivery is complete.</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">In those instances, in which arrangements include significant customization, contractual milestones, acceptance criteria or other contingencies, the Company accounts for the arrangements<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> using contract accounting, as follows:</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <table border="0px" cellpadding="0pt" cellspacing="0pt" style="margin: 0pt 1%; text-indent: 0px; font-size: 10pt; min-width: 700px;"> <tr> <td style="vertical-align:top;width:6.9%;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin: 0pt 0.8pt 0pt 0pt; text-align: center;">•</div> </td> <td style="vertical-align:top;width:86.1%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.8pt;margin-top:0pt;text-align:justify;">when customer acceptance can be estimated, but reliable estimated costs to complete cannot be determined, expenditures are capitalized as work-in process and deferred until completion of the contract at which time the costs and revenues are recognized.</div> </td> </tr> <tr> <td style="vertical-align:top;width:6.9%;"> <div style=" font-family: "Times New Roman", Times, serif; font-size: 10pt; margin: 0pt 0.8pt 0pt 0pt; text-align: center;">•</div> </td> <td style="vertical-align:top;width:86.1%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:0.8pt;margin-top:0pt;text-align:justify;">when customer acceptance cannot be estimated based on historical evidence, costs are expensed as incurred and revenue is recognized at the completion of the contract when customer acceptance is obtained.</div> </td> </tr> </table> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The Company records amounts collected from customers in excess of recognizable revenue as deferred revenue in the accompanying consolidated balance sheets. Revenues for maintenance agreements, software support, online services and information products are recognized ratably over the term of the service agreement.</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The Company recognizes revenue on a net basis, which excludes sales tax collected from customers and remitted to governmental authorities.</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Cost of Revenues </div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:9pt;margin-right:0pt;margin-top:0pt;text-align:justify;text-indent:24pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:9pt;margin-right:0pt;margin-top:0pt;text-align:justify;">Cost of revenues primarily consists of expenses related to delivering our service and providing support, amortization expense associated with capitalized software related to our services and acquired developed technologies and certain fees paid to various <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">third</div> parties for the use of their technology, services and data. Included in costs of revenues are cost of professional services, which consists primarily of employee-related costs associated with these services, the cost of subcontractors, certain <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">third</div>-party fees<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">, and allocated overhead. </div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:9pt;margin-right:0pt;margin-top:0pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:9pt;margin-right:0pt;margin-top:0pt;text-align:justify;">As we continue to invest in new products and services, the amortization expense associated with these capitalizable activities will be included in cost of revenues. Additionally, as we enter into new contracts with <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">third</div> parties for the use of their technology, services or data, or as our sales volume grows, the fees paid to use such technology or services <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>increase. The timing of these additional expenses will affect our cost of revenues, both in terms of absolute dollars and as a percentage of revenues, in the affected periods.</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Advertising Expense</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The Company expenses advertising costs as incurred. For the years ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">201</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> advertising expense totaled <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.4</div> million and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.4</div> million, respectively.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Foreign Currency</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Management has determined that the functional currency of its subsidiaries is the local currency. Assets and liabilities of the<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> UK subsidiaries are translated into US dollars at the year-end exchange rates. Income and expenses are translated at an average exchange rate for the year and the resulting translation gain (loss) adjustments are accumulated as a separate component of stockholders’ equity. The translation (loss) gain adjustment totaled $(<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.3</div>) million and $(<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1.7</div>) million for the years ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> respectively.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Foreign currency gains and losses from transactions denominated in other than respective local currencies are included in income. The Company had <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div></div> foreign currency transaction gain (loss) for all periods presented.</div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Comprehensive Income</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Comprehensive income includes all changes in equity (net assets) during a period from non-owner sources. For the years ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">201</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">7</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> the components of comprehensive income consist of foreign currency translation gains (losses).</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Income Taxes</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. Deferred taxation is provided in full in respect of timing differences between the treatment of certain items for taxation and accounting purposes. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. During the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017, </div>the Company recognized penalties of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.1</div></div> million on the Company’s consolidated balance sheet and in the consolidated statement of comprehensive income. During the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2016, </div>the Company did <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"></div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> </div>recognize any interest and/or penalties.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;">Basic and Diluted Earnings Per Share</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">Basic earnings per share (“BEPS”) is computed by dividing the net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share (“DEPS”) is computed giving effect to all dilutive potential common shares outstanding during the period. Dilutive potential common shares consist of incremental shares issuable upon the exercise of stock options and warrants using the “treasury stock” method. The computation of DEPS does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> assume conversion, exercise or contingent exercise of securities that would have an anti-dilutive effect on earnings. For the year<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">s ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div> there were common share equivalents of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">54,008</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">175,863,</div> respectively, included in the computation of the DEPS. For the years ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017 </div>and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">503,951</div> and <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">691,505</div> shares of common stock, respectively, vest based on the market price of the Company’s common stock and were excluded from the computation of DEPS because the shares have <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> vested, but <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> stock options were excluded from the computation of DEPS. </div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:7.5pt;margin-top:0pt;text-align:center;"> </div> <div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computation<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">s for the years ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30 (</div>in thousands, except for per share amounts):</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div> <table border="0" cellpadding="0" cellspacing="0" style="; font-size: 10pt; font-family: "Times New Roman", Times, serif; text-indent: 0px; min-width: 700px;"> <tr style="vertical-align: bottom;"> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">2017</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td colspan="2" style="text-align: center; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:center;">2016</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; width: 70%;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Numerator:</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Net income</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4,578</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3,552</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Denominator:</div> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 27pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:27pt;margin-right:0pt;margin-top:0pt;text-align:left;">Basic weighted-average shares outstanding</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11,732</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,314</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 27pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:27pt;margin-right:0pt;margin-top:0pt;text-align:left;">Effect of dilutive securities</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">54</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 1px solid rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 1px solid rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">176</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 1px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 27pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:27pt;margin-right:0pt;margin-top:0pt;text-align:left;">Diluted weighted-average diluted shares</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">11,786</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; border-bottom: 3px double rgb(0, 0, 0);"> </td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12,490</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(255, 255, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Basic earnings per common share</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.39</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.29</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> <tr style="vertical-align: bottom; background-color: rgb(204, 238, 255);"> <td style="text-align: left; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt;"> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt;text-align:left;">Diluted earnings per common share</div> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.39</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt;"> </td> <td style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);">$</td> <td style="width: 12%; text-align: right; font-family: "Times New Roman", Times, serif; font-size: 10pt; margin-left: 0pt; border-bottom: 3px double rgb(0, 0, 0);"><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">0.28</div></td> <td nowrap="nowrap" style="width: 1%; font-family: "Times New Roman", Times, serif; font-size: 10pt; padding-bottom: 3px; margin-left: 0pt;"> </td> </tr> </table> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;"><div style="display: inline; font-weight: bold;">Reclassification</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-weight: bold;">s</div></div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:left;text-indent:36pt;"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:7.5pt;margin-right:9pt;margin-top:0pt;text-align:justify;">Certain expenses were reclassified from<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> depreciation and amortization to cost of revenues in the accompanying consolidated statement of comprehensive income for the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2016, </div>in order to conform to the current period presentation.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:7.5pt;margin-right:0pt;margin-top:0pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">The Company adopted Accounting Standards Update ("ASU") <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">03,</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> <div style="display: inline; font-style: italic;">Imputation of Interest - Simplifying the Presentation of Debt Issuance Costs,</div> on a retrospective basis on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2016 </div>and prior period amounts have been reclassified to conform to the current period presentation. As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2016, </div>net debt issuance costs of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$91,000</div> were reclassified in the consolidated balance sheet from other long-term assets to an offset against the current and non-current portions of long-term debt.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-weight: bold;"> </div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:0pt;margin-right:7.5pt;margin-top:0pt;text-align:justify;text-indent:7.5pt;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-weight: bold;">Recent Accounting Pronouncements</div></div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;text-indent:36pt;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-style: italic;">Recently Adopted Accounting Standards</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> March 2016, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> <div style="display: inline; font-style: italic;">Improvements to Employee Share-Based Payment Accounting.</div> As required by ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> excess tax benefits recognized on stock-based compensation expense are reflected in the Company’s consolidated statements of comprehensive income as a component of the provision for income taxes on a prospective basis. Excess tax benefits are classified as an operating activity in our consolidated statements of cash flows and we have applied this provision on a retrospective basis. We elected to early adopt this standard in the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">fourth</div> quarter of our fiscal year that began <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2016. </div>As of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2016, </div>we had excess tax benefits for which benefits could <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> be previously recognized of approximately <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.7</div> million, due to net operating loss carryforwards resulting from the windfall tax benefits. Upon adoption, we recognized the previously unrecognized excess tax benefits of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">$0.7</div> million with an offsetting increase in our valuation allowance using a modified retrospective method through a cumulative effect adjustment to the accumulated deficit, with <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> net impact on our financial statements at the effective date of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2016. </div>In addition, we have elected to account for forfeitures as they occur, rather than estimate expected forfeitures over the course of a vesting period. There was <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> additional impact to the Company’s consolidated financial statements as a result of adopting ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09.</div></div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> November 2015, </div>the FASB issued <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">17,</div> <div style="display: inline; font-style: italic;">Balance Sheet C</div><div style="display: inline; font-style: italic;">lassification of Deferred Taxes</div>, an update to ASC <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">740,</div> Income Taxes (“Update”). Current GAAP requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. To simplify the presentation of deferred income taxes, the amendments in this Update require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> affected by the amendments in this update. For public business entities, the amendments in this Update are effective for financial statements issued for annual periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2016, </div>and interim periods within those annual periods. The Update permits earlier application by all entities as of the beginning of any interim or annual reporting period. This Update <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> may </div>be applied to all deferred tax liabilities and assets prospectively. The Company chose to adopt the Update prospectively beginning in the year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2017.</div></div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div><div style=" margin: 0pt; text-align: left; font-family: Times New Roman, Times, serif; font-size: 10pt;"><div style="display: inline; font-style: italic;"></div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-style: italic;"> Accounting Standards <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">Not</div> Yet Adopted</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-style: italic;"> </div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2017, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> <div style="display: inline; font-style: italic;">Compensation - Stock Compensation (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">718</div>): Scope of Modification Accounting</div>, which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in ASC Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">718.</div> Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09</div> will be effective for the Company for the fiscal year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2019 </div>and interim reporting periods within that year. Early adoption is permitted. The Company expects the adoption of this guidance will <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> have a material effect on the Company’</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">s consolidated financial statements.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> January 2017, </div>the FASB issued<div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">04,</div> <div style="display: inline; font-style: italic;">Intangibles-Goodwill and Other (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">350</div>): Simplifying the Test for Goodwill Impairment</div>. This update simplifies the subsequent measurement of goodwill by eliminating step <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">two</div> from the goodwill impairment test. Under the new guidance, an entity performs its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> to exceed the carrying amount of goodwill allocated to the reporting unit. ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">04</div> will be effective for the Company for the fiscal year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2021. </div>Early adoption is permitted. The Company does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> expect the adoption of ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">04</div> to have a significant impact on its consolidated financial statements. </div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 2016, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> <div style="display: inline; font-style: italic;">Statement of Cash Flows (Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">230</div>), Classification of Certain Cash Receipts and Cash Payments</div>.  The update provides guidance for how certain cash receipts and cash payments are to be presented on the statement of cash flows.  ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15</div> will be effective for the Company beginning the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">first</div> quarter of fiscal <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2018.</div>  Early adoption is permitted. ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15</div> is to be adopted using the retrospective transition method, unless it is impracticable, in which case it can be applied prospectively as of the earliest practical date. The Company does <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> expect the adoption of ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15</div> to have a significant impact on the disclosure or cash flow presentation in its consolidated financial statements.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> February 2016, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">02,</div> <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic;">Leases</div>. The update requires lessees to present right-of-use assets and lease liabilities on the balance sheet for all leases with terms longer than <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">12</div> months. The guidance is to be applied using a modified retrospective approach at the beginning of the earliest comparative period in the financial statements and will be effective for the Company for the fiscal year ended <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> June 30, 2021. </div>The Company is currently assessing the impact the adoption of ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">02</div> will have on its consolidated financial statements.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> May 2014, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09</div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"><div style="display: inline; font-style: italic;">, Revenue from Contracts with Customers </div>(Topic <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">606</div>), which amends the existing accounting standards for revenue recognition. ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09</div> is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2015,</div> the FASB provided a <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div>-year delay in the effective date of ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> to be effective for annual reporting periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2017,</div> including interim periods within that reporting period, and a permission to early adopt for annual and interim periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December </div><div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2016.</div></div><div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;"> The Company has performed a review of the new revenue standard and is monitoring the activity of the FASB and the transition resource group as it relates to specific interpretative guidance. The Company is assessing the impact of the <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">five</div>-step model of the new standard on its contracts compared to the results of current accounting practice.  The Company plans to adopt ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09</div> on <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> July 1, 2018. </div>The Company has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> yet determined whether it will adopt the provisions of ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09</div> on a retrospective basis or through a cumulative adjustment to retained earnings. The new standard could change the amount and timing of revenue and costs under certain arrangement types and could increase the administrative burden on the Company’s operations to properly account for customer contracts and provide the more expansive required disclosures. The Company is currently evaluating the impact of adopting ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">09,</div> but has <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> yet determined what effect, if any, the new guidance will have on its consolidated financial position, results of operations or cash flows.</div></div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> </div> <div style=" font-family:Times New Roman, Times, serif;font-size:10pt;margin:0pt 7.5pt;text-align:justify;"> <div style="display: inline; font-family:Times New Roman, Times, serif;font-size:10pt;">In <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> August 2014, </div>the FASB issued ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15,</div> <div style="display: inline; font-style: italic;">Presentation of Financial Statements-Going Concern</div>. Currently, there is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">no</div> guidance in accounting principles generally accepted in the US about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related footnote disclosures. The amendments require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in US auditing standards. Specifically, the amendments (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">1</div>) provide a definition of the term substantial doubt, (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2</div>) require an evaluation every reporting period including interim periods, (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">3</div>) provide principles for considering the mitigating effect of management’s plans, (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">4</div>) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">5</div>) require an express statement and other disclosures when substantial doubt is <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">not</div> alleviated, and (<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">6</div>) require an assessment for a period of <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">one</div> year after the date that the financial statements are issued (or available to be issued). The amendments in this ASU are effective for the reporting periods beginning after <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;"> December 15, 2016 </div>and early application is permitted. The Company is currently assessing the impact the adoption of ASU <div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">2014</div>-<div style="display: inline; font-style: italic; font-weight: inherit; font-style: normal;">15</div> will have on its consolidated financial statements.</div></div></div>

-18000

31000

154000

93000

233000

68000

11432

187000

47663

37795

55010

57126

13835

33000

20000

44000

53000

434000

510000

255000

241000

100000

16000

2000000

1000

15117000

15118000

29695

2000

31186000

-2213000

-1241000

-9337000

18397000

1000

16162000

-2374000

-2985000

-5785000

5019000

1000

14180000

-16000

-3283000

-1207000

9675000

2358000

200000

-2358000

5000

790000

30000

785000

-785000

16000

2374000

161000

700000

-3200000

-3900000

54008

175863

11786000

12490000

11732000

12314000

The outstanding restricted stock becomes vested when the Company's 30-day volume weighted average price ("VWAP") per share is at or above these levels. xbrli:shares xbrli:pure iso4217:USD iso4217:USD xbrli:shares iso4217:GBP 0000832488 2014-07-01 2015-06-30 0000832488 mams:OriginSoftwareSolutionsLtdMember 2015-07-01 2015-07-01 0000832488 mams:LITP2007Member 2015-07-01 2015-07-01 0000832488 2015-07-01 2016-06-30 0000832488 us-gaap:RestrictedStockMember 2015-07-01 2016-06-30 0000832488 mams:OriginSoftwareSolutionsLtdMember us-gaap:GeneralAndAdministrativeExpenseMember 2015-07-01 2016-06-30 0000832488 us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2015-07-01 2016-06-30 0000832488 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2015-07-01 2016-06-30 0000832488 us-gaap:SalesRevenueNetMember us-gaap:GeographicConcentrationRiskMember country:CA 2015-07-01 2016-06-30 0000832488 us-gaap:SalesRevenueNetMember us-gaap:GeographicConcentrationRiskMember country:GB 2015-07-01 2016-06-30 0000832488 us-gaap:SalesRevenueNetMember us-gaap:GeographicConcentrationRiskMember country:IE 2015-07-01 2016-06-30 0000832488 us-gaap:SalesRevenueNetMember us-gaap:GeographicConcentrationRiskMember country:US 2015-07-01 2016-06-30 0000832488 mams:AcquiredIntellectualPropertyMember 2015-07-01 2016-06-30 0000832488 mams:AutomotiveDataServicesMember 2015-07-01 2016-06-30 0000832488 mams:CompletedSoftwareTechnologyMember us-gaap:MaximumMember 2015-07-01 2016-06-30 0000832488 mams:CompletedSoftwareTechnologyMember us-gaap:MinimumMember 2015-07-01 2016-06-30 0000832488 us-gaap:ComputerSoftwareIntangibleAssetMember us-gaap:MaximumMember 2015-07-01 2016-06-30 0000832488 us-gaap:ComputerSoftwareIntangibleAssetMember us-gaap:MinimumMember 2015-07-01 2016-06-30 0000832488 us-gaap:CustomerRelationshipsMember 2015-07-01 2016-06-30 0000832488 us-gaap:DomesticCountryMember us-gaap:InternalRevenueServiceIRSMember 2015-07-01 2016-06-30 0000832488 us-gaap:ForeignCountryMember us-gaap:HerMajestysRevenueAndCustomsHMRCMember 2015-07-01 2016-06-30 0000832488 us-gaap:HerMajestysRevenueAndCustomsHMRCMember 2015-07-01 2016-06-30 0000832488 mams:UKPlanMember 2015-07-01 2016-06-30 0000832488 mams:US401KPlanMember 2015-07-01 2016-06-30 0000832488 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2015-07-01 2016-06-30 0000832488 us-gaap:AdditionalPaidInCapitalMember 2015-07-01 2016-06-30 0000832488 us-gaap:CommonStockMember 2015-07-01 2016-06-30 0000832488 us-gaap:PreferredStockMember 2015-07-01 2016-06-30 0000832488 us-gaap:RetainedEarningsMember 2015-07-01 2016-06-30 0000832488 us-gaap:TreasuryStockMember 2015-07-01 2016-06-30 0000832488 2015-12-01 2015-12-01 0000832488 us-gaap:RevolvingCreditFacilityMember mams:JMPCreditFacilityMember mams:JPMorganChaseBankNAMember 2015-12-01 2015-12-01 0000832488 mams:TenderOfferMember 2015-12-01 2015-12-01 0000832488 2016-07-01 2017-06-30 0000832488 us-gaap:AccountingStandardsUpdate201609Member 2016-07-01 2017-06-30 0000832488 mams:ReclassificationOfNetDebtIssuanceCostsFromOtherLongTermAssetsToAnOffsetAgainstCurrentAndNoncurrentPortionsOfLongTermDebtMember mams:AsOfJune302016Member 2016-07-01 2017-06-30 0000832488 us-gaap:RestrictedStockMember 2016-07-01 2017-06-30 0000832488 us-gaap:AccountsReceivableMember us-gaap:CustomerConcentrationRiskMember 2016-07-01 2017-06-30 0000832488 us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2016-07-01 2017-06-30 0000832488 us-gaap:SalesRevenueNetMember us-gaap:GeographicConcentrationRiskMember country:CA 2016-07-01 2017-06-30 0000832488 us-gaap:SalesRevenueNetMember us-gaap:GeographicConcentrationRiskMember country:GB 2016-07-01 2017-06-30 0000832488 us-gaap:SalesRevenueNetMember us-gaap:GeographicConcentrationRiskMember country:IE 2016-07-01 2017-06-30 0000832488 us-gaap:SalesRevenueNetMember us-gaap:GeographicConcentrationRiskMember country:US 2016-07-01 2017-06-30 0000832488 mams:JMPCreditFacilityMember mams:JPMorganChaseBankNAMember 2016-07-01 2017-06-30 0000832488 mams:AcquiredIntellectualPropertyMember 2016-07-01 2017-06-30 0000832488 mams:AutomotiveDataServicesMember 2016-07-01 2017-06-30 0000832488 mams:CompletedSoftwareTechnologyAndCustomerContractsRelationshipsMember us-gaap:MaximumMember 2016-07-01 2017-06-30 0000832488 mams:CompletedSoftwareTechnologyAndCustomerContractsRelationshipsMember us-gaap:MinimumMember 2016-07-01 2017-06-30 0000832488 mams:CompletedSoftwareTechnologyMember us-gaap:MaximumMember 2016-07-01 2017-06-30 0000832488 mams:CompletedSoftwareTechnologyMember us-gaap:MinimumMember 2016-07-01 2017-06-30 0000832488 us-gaap:ComputerSoftwareIntangibleAssetMember us-gaap:MaximumMember 2016-07-01 2017-06-30 0000832488 us-gaap:ComputerSoftwareIntangibleAssetMember us-gaap:MinimumMember 2016-07-01 2017-06-30 0000832488 us-gaap:CustomerRelationshipsMember 2016-07-01 2017-06-30 0000832488 us-gaap:DomesticCountryMember us-gaap:InternalRevenueServiceIRSMember 2016-07-01 2017-06-30 0000832488 us-gaap:ForeignCountryMember us-gaap:HerMajestysRevenueAndCustomsHMRCMember 2016-07-01 2017-06-30 0000832488 mams:EmployeeStockPurchasePlanMember 2016-07-01 2017-06-30 0000832488 us-gaap:MaximumMember 2016-07-01 2017-06-30 0000832488 us-gaap:MinimumMember 2016-07-01 2017-06-30 0000832488 mams:UKPlanMember 2016-07-01 2017-06-30 0000832488 mams:US401KPlanMember 2016-07-01 2017-06-30 0000832488 mams:CommonStockIssuedForCashMember 2016-07-01 2017-06-30 0000832488 mams:CommonStockIssuedOnCashlessBasisMember 2016-07-01 2017-06-30 0000832488 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2016-07-01 2017-06-30 0000832488 us-gaap:AdditionalPaidInCapitalMember 2016-07-01 2017-06-30 0000832488 us-gaap:CommonStockMember 2016-07-01 2017-06-30 0000832488 us-gaap:PreferredStockMember 2016-07-01 2017-06-30 0000832488 us-gaap:RetainedEarningsMember 2016-07-01 2017-06-30 0000832488 us-gaap:TreasuryStockMember 2016-07-01 2017-06-30 0000832488 mams:DeferredTaxAssetsCapitalLossCarryforwardsMember 2016-07-01 2017-06-30 0000832488 mams:EIP2007Member 2017-01-06 2017-01-06 0000832488 mams:NewCreditFacilityMember mams:UnivestBankAndTrustCoMember us-gaap:MaximumMember mams:EitherLIBORateOrPrimeRateMember 2017-03-02 2017-03-02 0000832488 mams:NewCreditFacilityMember mams:UnivestBankAndTrustCoMember us-gaap:MinimumMember mams:EitherLIBORateOrPrimeRateMember 2017-03-02 2017-03-02 0000832488 mams:NewCreditFacilityMember mams:UnivestBankAndTrustCoMember us-gaap:ScenarioForecastMember 2017-03-02 2017-12-01 0000832488 mams:NewCreditFacilityMember mams:UnivestBankAndTrustCoMember us-gaap:ScenarioForecastMember 2017-12-02 2018-12-01 0000832488 mams:NewCreditFacilityMember mams:UnivestBankAndTrustCoMember us-gaap:ScenarioForecastMember 2018-12-02 2021-08-01 0000832488 2011-06-30 0000832488 2015-06-30 0000832488 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2015-06-30 0000832488 us-gaap:AdditionalPaidInCapitalMember 2015-06-30 0000832488 us-gaap:CommonStockMember 2015-06-30 0000832488 us-gaap:PreferredStockMember 2015-06-30 0000832488 us-gaap:RetainedEarningsMember 2015-06-30 0000832488 us-gaap:TreasuryStockMember 2015-06-30 0000832488 mams:OriginSoftwareSolutionsLtdMember 2015-07-01 0000832488 us-gaap:RevolvingCreditFacilityMember mams:JMPCreditFacilityMember mams:JPMorganChaseBankNAMember 2015-12-01 0000832488 mams:JMPCreditFacilityMember mams:JPMorganChaseBankNAMember 2015-12-01 0000832488 2016-06-30 0000832488 us-gaap:RestrictedStockMember 2016-06-30 0000832488 mams:AcquiredIntellectualPropertyMember 2016-06-30 0000832488 mams:AmortizableIntangibleAssetsExceptComputerSoftwareMember 2016-06-30 0000832488 mams:AutomotiveDataServicesMember 2016-06-30 0000832488 mams:CompletedSoftwareTechnologyMember 2016-06-30 0000832488 us-gaap:ComputerSoftwareIntangibleAssetMember 2016-06-30 0000832488 us-gaap:CustomerRelationshipsMember 2016-06-30 0000832488 mams:EquipmentFinancingMember 2016-06-30 0000832488 us-gaap:LineOfCreditMember 2016-06-30 0000832488 mams:TermLoanMember 2016-06-30 0000832488 us-gaap:AssetsHeldUnderCapitalLeasesMember 2016-06-30 0000832488 mams:ComputerAndOfficeEquipmentMember 2016-06-30 0000832488 us-gaap:FurnitureAndFixturesMember 2016-06-30 0000832488 us-gaap:LeaseholdImprovementsMember 2016-06-30 0000832488 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2016-06-30 0000832488 us-gaap:AdditionalPaidInCapitalMember 2016-06-30 0000832488 us-gaap:CommonStockMember 2016-06-30 0000832488 us-gaap:PreferredStockMember 2016-06-30 0000832488 us-gaap:RetainedEarningsMember 2016-06-30 0000832488 us-gaap:TreasuryStockMember 2016-06-30 0000832488 country:GB 2016-06-30 0000832488 country:US 2016-06-30 0000832488 2016-12-30 0000832488 us-gaap:RevolvingCreditFacilityMember mams:NewCreditFacilityMember mams:UnivestBankAndTrustCoMember 2017-03-02 0000832488 mams:NewCreditFacilityMember mams:UnivestBankAndTrustCoMember 2017-03-02 0000832488 2017-06-30 0000832488 us-gaap:RestrictedStockMember 2017-06-30 0000832488 us-gaap:RestrictedStockMember us-gaap:ShareBasedCompensationAwardTrancheOneMember 2017-06-30 0000832488 us-gaap:RestrictedStockMember us-gaap:ShareBasedCompensationAwardTrancheThreeMember 2017-06-30 0000832488 us-gaap:RestrictedStockMember us-gaap:ShareBasedCompensationAwardTrancheTwoMember 2017-06-30 0000832488 us-gaap:RestrictedStockMember mams:SharebasedCompensationAwardTrancheFiveMember 2017-06-30 0000832488 us-gaap:RestrictedStockMember mams:SharebasedCompensationAwardTrancheFourMember 2017-06-30 0000832488 us-gaap:OtherNoncurrentLiabilitiesMember mams:OriginSoftwareSolutionsLtdMember 2017-06-30 0000832488 mams:OriginSoftwareSolutionsLtdMember 2017-06-30 0000832488 us-gaap:RevolvingCreditFacilityMember mams:NewCreditFacilityMember mams:UnivestBankAndTrustCoMember 2017-06-30 0000832488 mams:AcquiredIntellectualPropertyMember 2017-06-30 0000832488 mams:AmortizableIntangibleAssetsExceptComputerSoftwareMember 2017-06-30 0000832488 mams:AutomotiveDataServicesMember 2017-06-30 0000832488 mams:CompletedSoftwareTechnologyMember 2017-06-30 0000832488 us-gaap:ComputerSoftwareIntangibleAssetMember 2017-06-30 0000832488 us-gaap:CustomerRelationshipsMember 2017-06-30 0000832488 us-gaap:DomesticCountryMember 2017-06-30 0000832488 us-gaap:StateAndLocalJurisdictionMember 2017-06-30 0000832488 mams:EquipmentFinancingMember 2017-06-30 0000832488 us-gaap:LineOfCreditMember 2017-06-30 0000832488 mams:TermLoanMember 2017-06-30 0000832488 mams:EmployeeStockPurchasePlanMember mams:UKEmployeesMember 2017-06-30 0000832488 mams:EmployeeStockPurchasePlanMember mams:USEmployeesMember 2017-06-30 0000832488 us-gaap:AssetsHeldUnderCapitalLeasesMember 2017-06-30 0000832488 mams:ComputerAndOfficeEquipmentMember 2017-06-30 0000832488 us-gaap:FurnitureAndFixturesMember 2017-06-30 0000832488 us-gaap:LeaseholdImprovementsMember 2017-06-30 0000832488 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-06-30 0000832488 us-gaap:AdditionalPaidInCapitalMember 2017-06-30 0000832488 us-gaap:CommonStockMember 2017-06-30 0000832488 us-gaap:PreferredStockMember 2017-06-30 0000832488 us-gaap:RetainedEarningsMember 2017-06-30 0000832488 us-gaap:TreasuryStockMember 2017-06-30 0000832488 country:GB 2017-06-30 0000832488 country:US 2017-06-30 0000832488 2017-09-19

EX-101.SCH 9 mams-20170630.xsd XBRL TAXONOMY EXTENSION SCHEMA 000 - Document - Document And Entity Information link:calculationLink link:definitionLink link:presentationLink 001 - Statement - Consolidated Balance Sheets link:calculationLink link:definitionLink link:presentationLink 002 - Statement - Consolidated Balance Sheets (Parentheticals) link:calculationLink link:definitionLink link:presentationLink 003 - Statement - Consolidated Statements of Comprehensive Income link:calculationLink link:definitionLink link:presentationLink 004 - Statement - Consolidated Statements of Stockholders' Equity link:calculationLink link:definitionLink link:presentationLink 005 - Statement - Consolidated Statements of Cash Flows link:calculationLink link:definitionLink link:presentationLink 006 - Disclosure - Note 1 - Summary of Significant Accounting Policies link:calculationLink link:definitionLink link:presentationLink 007 - Disclosure - Note 2 - Business Acquisition link:calculationLink link:definitionLink link:presentationLink 008 - Disclosure - Note 3 - Property and Equipment link:calculationLink link:definitionLink link:presentationLink 009 - Disclosure - Note 4 - Intangible Assets link:calculationLink link:definitionLink link:presentationLink 010 - Disclosure - Note 5 - Long-term Debt link:calculationLink link:definitionLink link:presentationLink 011 - Disclosure - Note 6 - Income Taxes link:calculationLink link:definitionLink link:presentationLink 012 - Disclosure - Note 7 - Commitments and Contingencies link:calculationLink link:definitionLink link:presentationLink 013 - Disclosure - Note 8 - Stockholders' Equity link:calculationLink link:definitionLink link:presentationLink 014 - Disclosure - Note 9 - Employee Benefit Plans link:calculationLink link:definitionLink link:presentationLink 015 - Document - Note 10 - Subsequent Events link:calculationLink link:definitionLink link:presentationLink 016 - Disclosure - Significant Accounting Policies (Policies) link:calculationLink link:definitionLink link:presentationLink 017 - Disclosure - Note 1 - Summary of Significant Accounting Policies (Tables) link:calculationLink link:definitionLink link:presentationLink 018 - Disclosure - Note 3 - Property and Equipment (Tables) link:calculationLink link:definitionLink link:presentationLink 019 - Disclosure - Note 4 - Intangible Assets (Tables) link:calculationLink link:definitionLink link:presentationLink 020 - Disclosure - Note 5 - Long-term Debt (Tables) link:calculationLink link:definitionLink link:presentationLink 021 - Disclosure - Note 6 - Income Taxes (Tables) link:calculationLink link:definitionLink link:presentationLink 022 - Disclosure - Note 7 - Commitments and Contingencies (Tables) link:calculationLink link:definitionLink link:presentationLink 023 - Disclosure - Note 8 - Stockholders' Equity (Tables) link:calculationLink link:definitionLink link:presentationLink 024 - Disclosure - Note 1 - Summary of Significant Accounting Policies (Details Textual) link:calculationLink link:definitionLink link:presentationLink 025 - Disclosure - Note 1 - Summary of Significant Accounting Policies - Goodwill Activity (Details) link:calculationLink link:definitionLink link:presentationLink 027 - Disclosure - Note 2 - Business Acquisition (Details Textual) link:calculationLink link:definitionLink link:presentationLink 028 - Disclosure - Note 3 - Property and Equipment (Details Textual) link:calculationLink link:definitionLink link:presentationLink 029 - Disclosure - Note 3 - Property and Equipment - Summary of Property and Equipment (Details) link:calculationLink link:definitionLink link:presentationLink 030 - Disclosure - Note 4 - Intangible Assets (Details Textual) link:calculationLink link:definitionLink link:presentationLink 031 - Disclosure - Note 4 - Intangible Assets - Summary of Intangible Assets (Details) link:calculationLink link:definitionLink link:presentationLink 032 - Disclosure - Note 4 - Intangible Assets - Estimated Future Amortization of Software Development Costs and Intangibles (Details) link:calculationLink link:definitionLink link:presentationLink 033 - Disclosure - Note 5 - Long-term Debt (Details Textual) link:calculationLink link:definitionLink link:presentationLink 034 - Disclosure - Note 5 - Long-term Debt - Summary of Long-term Debt (Details) link:calculationLink link:definitionLink link:presentationLink 035 - Disclosure - Note 5 - Long-term Debt - Future Minimum Payments for Long-term Debt (Details) link:calculationLink link:definitionLink link:presentationLink 036 - Disclosure - Note 6 - Income Taxes (Details Textual) link:calculationLink link:definitionLink link:presentationLink 037 - Disclosure - Note 6 - Income Taxes - Income (Loss) Before Income Taxes by Jursidiction (Details) link:calculationLink link:definitionLink link:presentationLink 038 - Disclosure - Note 6 - Income Taxes - Provision (Benefit) for Income Taxes (Details) link:calculationLink link:definitionLink link:presentationLink 039 - Disclosure - Note 6 - Income Taxes - Deferred Tax Assets (Liabilities) (Details) link:calculationLink link:definitionLink link:presentationLink 040 - Disclosure - Note 6 - Income Taxes - Effective Income Tax Rate Reconciliation (Details) link:calculationLink link:definitionLink link:presentationLink 041 - Disclosure - Note 7 - Commitments and Contingencies (Details Textual) link:calculationLink link:definitionLink link:presentationLink 042 - Disclosure - Note 7 - Commitments and Contingencies - Future Annual Minimum Payments under Non-cancelable Operating Leases (Details) link:calculationLink link:definitionLink link:presentationLink 043 - Disclosure - Note 8 - Stockholders' Equity (Details Textual) link:calculationLink link:definitionLink link:presentationLink 044 - Disclosure - Note 8 - Stockholders' Equity - Stock Option Activity (Details) link:calculationLink link:definitionLink link:presentationLink 045 - Disclosure - Note 8 - Stockholders' Equity - Restricted Stock Activity (Details) link:calculationLink link:definitionLink link:presentationLink 046 - Disclosure - Note 8 - Stockholders' Equity - Vesting Levels of Restricted Stock (Details) link:calculationLink link:definitionLink link:presentationLink 047 - Disclosure - Note 9 - Employee Benefit Plans (Details Textual) link:calculationLink link:definitionLink link:presentationLink EX-101.CAL 10 mams-20170630_cal.xml XBRL TAXONOMY EXTENSION CALCULATION LINKBASE EX-101.DEF 11 mams-20170630_def.xml XBRL TAXONOMY EXTENSION DEFINITION LINKBASE EX-101.LAB 12 mams-20170630_lab.xml XBRL TAXONOMY EXTENSION LABEL LINKBASE Document And Entity Information Note To Financial Statement Details Textual statementsignificantaccountingpoliciespolicies statementnote1summaryofsignificantaccountingpoliciestables statementnote3propertyandequipmenttables statementnote4intangibleassetstables statementnote5longtermdebttables statementnote6incometaxestables Variable Rate [Domain] statementnote7commitmentsandcontingenciestables Operating Expenses Variable Rate [Axis] statementnote8stockholdersequitytables statementnote1summaryofsignificantaccountingpoliciesgoodwillactivitydetails statementnote1summaryofsignificantaccountingpoliciesbasicanddilutedearningspersharedetails statementnote3propertyandequipmentsummaryofpropertyandequipmentdetails statementnote4intangibleassetssummaryofintangibleassetsdetails statementnote4intangibleassetsestimatedfutureamortizationofsoftwaredevelopmentcostsandintangiblesdetails statementnote5longtermdebtsummaryoflongtermdebtdetails statementnote5longtermdebtfutureminimumpaymentsforlongtermdebtdetails statementnote6incometaxesincomelossbeforeincometaxesbyjursidictiondetails statementnote6incometaxesprovisionbenefitforincometaxesdetails statementnote6incometaxesdeferredtaxassetsliabilitiesdetails statementnote6incometaxeseffectiveincometaxratereconciliationdetails statementnote7commitmentsandcontingenciesfutureannualminimumpaymentsundernoncancelableoperatingleasesdetails statementnote8stockholdersequitystockoptionactivitydetails statementnote8stockholdersequityrestrictedstockactivitydetails statementnote8stockholdersequityvestinglevelsofrestrictedstockdetails Notes To Financial Statements Notes To Financial Statements [Abstract] CASH FLOWS FROM INVESTING ACTIVITIES: Gain on settlement of liabilities The gain on settlement of liabilities during the reporting period. mams_PaymentOfFeesForRepurchaseOfCommonStock Payment of fees for repurchase of common stock Cash outflow of fees for the repurchase of common stock. us-gaap_CashFDICInsuredAmount Cash, FDIC Insured Amount Reclassification of Net Debt Issuance Costs from Other Long-term Assets to an Offset Against Current and Non-current Portions of Long-term Debt [Member] Represents the reclassification of net debt issuance costs from other long-term assets to an offset against the current and non-current portions of long-term debt. Income tax payable us-gaap_IncreaseDecreaseInAccruedIncomeTaxesPayable Deferred revenue us-gaap_IncreaseDecreaseInDeferredRevenue us-gaap_ComprehensiveIncomeNetOfTax Total Comprehensive Income us-gaap_StockIssuedDuringPeriodValueRestrictedStockAwardForfeitures Forfeiture of restricted stock Payroll and other taxes us-gaap_IncreaseDecreaseInEmployeeRelatedLiabilities Origin Software Solutions Ltd [Member] Represents the Origin Software Solutions,Ltd. mams_BusinessAcquisitionContingentConsiderationEquityInterestIssuableValue Business Acquisition, Contingent Consideration, Equity Interest Issuable Value Represents the value of contingent equity interests issuable. Retirement of treasury stock (in shares) Treasury Stock, Shares, Retired us-gaap_TreasuryStockSharesAcquired Repurchase of common stock for treasury (in shares) Preferred stock, shares outstanding (in shares) Use of Estimates, Policy [Policy Text Block] Common stock, shares outstanding (in shares) us-gaap_PriorPeriodReclassificationAdjustment Prior Period Reclassification Adjustment us-gaap_LineOfCreditFacilityMaximumBorrowingCapacity Line of Credit Facility, Maximum Borrowing Capacity New Accounting Pronouncements, Policy [Policy Text Block] Reclassification, Policy [Policy Text Block] us-gaap_SharesOutstanding Balance (in shares) Balance (in shares) Accounts payable us-gaap_IncreaseDecreaseInAccountsPayable Consolidation, Policy [Policy Text Block] Line of Credit Facility, Lender [Domain] Lender Name [Axis] Net revenues Cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Subsequent Events [Text Block] Term Loan [Member] Represents information about the term loan. Acquired Intellectual Property [Member] Represents the acquired intellectual property. mams_PercentageOfPledgedStock Percentage of Pledged Stock Represents the percentage of pledged stock. J.P. Morgan Chase Bank, N.A. [Member] Represents J.P. Morgan Chase Bank, N.A. Debt Disclosure [Text Block] Pension and Other Postretirement Benefits Disclosure [Text Block] Domestic intangibles and other long-lived assets Amount before allocation of valuation allowances of deferred tax asset attributable to domestic intangible and other long-lived assets. mams_EffectiveIncomeTaxRateReconciliationPermanentItemsAndOther Permanent items and other Amount of the difference between reported income tax expense (benefit) and expected income tax expense (benefit) computed by applying the domestic federal statutory income tax rates to pretax income (loss) from continuing operations attributable to permanent items and other. Tender Offer [Member] Represents the tender offer. mams_PurchasesOfCommonStockDuringPeriod Purchases of Common Stock During Period This element represents purchases of number of common stock during the period. mams_PurchasesOfCommonStockDuringPeriodValue Purchases of Common Stock During Period, Value This element represents purchases amount of common stock during the period. us-gaap_ConcentrationRiskPercentage1 Concentration Risk, Percentage mams_PurchasesOfCommonStockPricePerShare Purchases of Common Stock Price Per Share This element represents purchases of price per share of common stock during the period. Share-based Compensation Award, Tranche Four [Member] Fourth portion of share-based compensation award differentiated by a particular vesting feature, including, but not limited to, performance measure or service period. us-gaap_TreasuryStockValueAcquiredCostMethod Repurchase of common stock for treasury Retirement of treasury stock Treasury Stock, Retired, Cost Method, Amount Share-based Compensation Award, Tranche Five [Member] Fifth portion of share-based compensation award differentiated by a particular vesting feature, including, but not limited to, performance measure or service period. Customer Concentration Risk [Member] Schedule of Vesting Level of Restricted Stock [Table Text Block] Tabular disclosure of the vesting levels of restricted stock. Accrued expenses and other liabilities us-gaap_IncreaseDecreaseInAccruedLiabilitiesAndOtherOperatingLiabilities mams_PaymentsForRepurchaseOfCommonStockForTreasury Repurchase of common stock for treasury Payments for repurchase of common stock for treasury during period. us-gaap_TreasuryStockValue Treasury stock at cost, 5 shares at June 30, 2017 and 790 shares at June 30, 2016 Concentration Risk Type [Domain] Geographic Concentration Risk [Member] us-gaap_StockRepurchasedAndRetiredDuringPeriodShares Repurchase of common stock in tender offer (in shares) us-gaap_StockRepurchasedAndRetiredDuringPeriodValue Repurchase of common stock in tender offer Concentration Risk Type [Axis] us-gaap_StockRepurchasedDuringPeriodShares Stock Repurchased During Period, Shares Relationship to Entity [Domain] Title of Individual [Axis] us-gaap_IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets Prepaid expenses and other assets us-gaap_SharesPaidForTaxWithholdingForShareBasedCompensation Shares Paid for Tax Withholding for Share Based Compensation Common stock surrendered to pay for tax withholding (in shares) Stockholders' Equity Note Disclosure [Text Block] Sales Revenue, Net [Member] Accounts Receivable [Member] Concentration Risk Benchmark [Domain] us-gaap_AllocatedShareBasedCompensationExpense Allocated Share-based Compensation Expense Concentration Risk Benchmark [Axis] us-gaap_StockIssuedDuringPeriodSharesRestrictedStockAwardForfeited Forfeiture of restricted stock (in shares) Common stock issued for options exercised (in shares) Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period Number of options exercised (in shares) Common stock issued for options exercised mams_DebtAgreementMaximumBorrowingCapacity Debt Agreement, Maximum Borrowing Capacity Maximum borrowing capacity under a debt agreement on the amount that could be borrowed with a combination of, but not limited to, a line of credit and term loan. us-gaap_IncreaseDecreaseInIncomeTaxesReceivable Income tax receivable us-gaap_StockIssuedDuringPeriodSharesShareBasedCompensation Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures us-gaap_IncreaseDecreaseInAccountsReceivable Accounts receivable us-gaap_StockIssuedDuringPeriodValueShareBasedCompensation Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures Number of options cancelled (in shares) Number of options granted (in shares) Interest expense, net Common stock issued as compensation – Includes amortization of unvested shares (See Note 8) (in shares) Common stock issued as compensation – Includes amortization of unvested shares (See Note 8) us-gaap_StockIssuedDuringPeriodSharesNewIssues Stock Issued During Period, Shares, New Issues us-gaap_StockIssuedDuringPeriodValueNewIssues Stock Issued During Period, Value, New Issues us-gaap_DeferredTaxAssetsValuationAllowance Deferred Tax Assets, Valuation Allowance Valuation allowance us-gaap_ValuationAllowanceDeferredTaxAssetChangeInAmount Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount us-gaap_LiabilitiesAndStockholdersEquity TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY Valuation Allowance by Deferred Tax Asset [Axis] Accumulated deficit Deferred Tax Asset [Domain] Accumulated other comprehensive loss us-gaap_DeferredTaxAssetsNet Deferred Tax Assets, Net of Valuation Allowance us-gaap_IncreaseDecreaseInInventories Inventories us-gaap_DeferredIncomeTaxLiabilities Total deferred tax liabilities us-gaap_DeferredTaxAssetsGross Total deferred tax assets us-gaap_NumberOfReportableSegments Number of Reportable Segments us-gaap_NumberOfOperatingSegments Number of Operating Segments State taxes Reserves and accruals Other Assets CANADA Fair Value of Financial Instruments, Policy [Policy Text Block] Segment Reporting, Policy [Policy Text Block] Equity-based compensation Prepaid expenses and other current assets us-gaap_DisclosureTextBlockAbstract Notes to Financial Statements Foreign Currency Transactions and Translations Policy [Policy Text Block] us-gaap_NonoperatingIncomeExpense Total other expense, net Earnings Per Share, Policy [Policy Text Block] Tax credits Comprehensive Income, Policy [Policy Text Block] Income Tax, Policy [Policy Text Block] Changes in assets and liabilities: Property, Plant and Equipment [Table Text Block] us-gaap_DeferredTaxAssetsLiabilitiesNetNoncurrent Deferred income taxes Net operating loss carry-forwards UNITED KINGDOM Property, Plant and Equipment Disclosure [Text Block] Research, Development, and Computer Software, Policy [Policy Text Block] Deferred tax assets: Other Income (Expense) us-gaap_OperatingIncomeLoss Operating Income us-gaap_OperatingLeasesRentExpenseNet Operating Leases, Rent Expense, Net Deferred income taxes Deferred tax expense (benefit) us-gaap_GrossProfit Gross Profit Treasury stock at cost, shares (in shares) Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] Amendment Flag Cost of revenues Common stock: Par value $0.0001 per share; 18,000 shares authorized, 12,313 shares issued and 12,308 shares outstanding at June 30, 2017, and 13,199 shares issued and 12,410 shares outstanding at June 30, 2016 IRELAND Common stock, shares authorized (in shares) Common stock, shares issued (in shares) Other long-term assets 2020 us-gaap_DeferredTaxLiabilitiesUndistributedForeignEarnings Unremitted foreign earnings Common stock, par value (in dollars per share) 2019 2022 Stock-based compensation expense 2021 Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] Advertising Costs, Policy [Policy Text Block] 2018 Current Fiscal Year End Date Amortization of debt discount and debt issuance costs Cost of Sales, Policy [Policy Text Block] Document Fiscal Period Focus Document Fiscal Year Focus Deferred tax liabilities: Document Period End Date Preferred stock: Par value $0.0001 per share; 2,000 shares authorized, none issued and outstanding Average Estimated Useful Life (Year) Finite-Lived Intangible Asset, Useful Life Preferred stock, shares issued (in shares) Document Type Depreciation and amortization us-gaap_DepreciationDepletionAndAmortization Preferred stock, shares authorized (in shares) Document Information [Line Items] Document Information [Table] Preferred stock, par value (in dollars per share) us-gaap_Depreciation Depreciation us-gaap_AssetsCurrent Total Current Assets Entity Public Float EX-101.PRE 13 mams-20170630_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE XML 14 R1.htm IDEA: XBRL DOCUMENT

Document And Entity Information - USD ($)	12 Months Ended
Document And Entity Information - USD ($)	Jun. 30, 2017	Sep. 19, 2017	Dec. 30, 2016
Document Information [Line Items]
Entity Registrant Name	MAM SOFTWARE GROUP, INC.
Entity Central Index Key	0000832488
Trading Symbol	mams
Current Fiscal Year End Date	--06-30
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		12,322,334
Entity Public Float			$ 27,000,940
Document Type	10-K
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Amendment Flag	false

XML 15 R2.htm IDEA: XBRL DOCUMENT

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2017	Jun. 30, 2016
Current Assets
Cash and cash equivalents	$ 1,260	$ 491
Accounts receivable, net of allowance of $332 and $359, respectively	4,644	4,627
Inventories	384	221
Prepaid expenses and other current assets	1,433	1,495
Income tax receivable	168	535
Total Current Assets	7,889	7,369
Property and Equipment, Net	511	581
Other Assets
Goodwill	8,191	8,363
Intangible assets, net	8,273	5,973
Deferred income taxes	1,679
Other long-term assets	109	68
TOTAL ASSETS	26,652	22,354
Current Liabilities
Accounts payable	1,334	1,618
Accrued expenses and other liabilities	2,165	1,811
Payroll and other taxes	815	1,188
Current portion of long-term debt	1,734	1,879
Current portion of deferred revenue	1,477	939
Sales tax payable	761	750
Income tax payable	506	1
Total Current Liabilities	8,792	8,186
Long-Term Liabilities
Deferred revenue, net of current portion	534	273
Deferred income taxes	682	535
Long-term debt, net of current portion	6,386	7,808
Other long-term liabilities	583	533
Total Liabilities	16,977	17,335
Commitments and Contingencies
Stockholders' Equity
Preferred stock: Par value $0.0001 per share; 2,000 shares authorized, none issued and outstanding	0	0
Common stock: Par value $0.0001 per share; 18,000 shares authorized, 12,313 shares issued and 12,308 shares outstanding at June 30, 2017, and 13,199 shares issued and 12,410 shares outstanding at June 30, 2016	1	1
Additional paid-in capital	14,180	16,162
Accumulated other comprehensive loss	(3,283)	(2,985)
Accumulated deficit	(1,207)	(5,785)
Treasury stock at cost, 5 shares at June 30, 2017 and 790 shares at June 30, 2016	(16)	(2,374)
Total Stockholders' Equity	9,675	5,019
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	26,652	22,354
Amortizable Intangible Assets, Except Computer Software [Member]
Other Assets
Intangible assets, net	639	739
Computer Software, Intangible Asset [Member]
Other Assets
Intangible assets, net	$ 7,634	$ 5,234

XML 16 R3.htm IDEA: XBRL DOCUMENT

Consolidated Balance Sheets (Parentheticals) - USD ($) shares in Thousands, $ in Thousands	Jun. 30, 2017	Jun. 30, 2016
Accounts receivable, allowance	$ 332	$ 359
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	2,000	2,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	18,000	18,000
Common stock, shares issued (in shares)	12,313	13,199
Common stock, shares outstanding (in shares)	12,308	12,410
Treasury stock at cost, shares (in shares)	5	790

XML 17 R4.htm IDEA: XBRL DOCUMENT

Consolidated Statements of Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Net revenues	$ 31,596	$ 32,212
Cost of revenues	14,193	14,598
Gross Profit	17,403	17,614
Operating Expenses
Research and development	3,791	3,777
Sales and marketing	3,659	4,009
General and administrative	5,505	5,658
Depreciation and amortization	231	370
Total Operating Expenses	13,186	13,814
Operating Income	4,217	3,800
Other Income (Expense)
Interest expense, net	(559)	(276)
Gain on settlement of liabilities		217
Total other expense, net	(559)	(59)
Income before provision (benefit) for income taxes	3,658	3,741
Provision (benefit) for income taxes	(920)	189
Net Income	$ 4,578	$ 3,552
Earnings per share attributed to common stockholders - basic (in dollars per share)	$ 0.39	$ 0.29
Earnings per share attributed to common stockholders - diluted (in dollars per share)	$ 0.39	$ 0.28
Weighted average common shares outstanding – basic (in shares)	11,732	12,314
Weighted average common shares outstanding – diluted (in shares)	11,786	12,490
Net Income	$ 4,578	$ 3,552
Foreign currency translation loss	(298)	(1,744)
Total Comprehensive Income	$ 4,280	$ 1,808

XML 18 R5.htm IDEA: XBRL DOCUMENT

Consolidated Statements of Stockholders' Equity - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Jun. 30, 2015	15,027,000		(760,000)
Balance at Jun. 30, 2015	$ 2,000	$ 31,186,000	$ (2,213,000)	$ (1,241,000)	$ (9,337,000)	$ 18,397,000
Common stock issued as compensation – Includes amortization of unvested shares (See Note 8) (in shares)	233,000
Common stock issued as compensation – Includes amortization of unvested shares (See Note 8)		434,000				$ 434,000
Common stock surrendered to pay for tax withholding (in shares)	(61,000)					(60,612)
Common stock surrendered to pay for tax withholding		(341,000)				$ (341,000)
Retirement of treasury stock			$ 200,000
Repurchase of common stock for treasury (in shares)			(30,000)
Repurchase of common stock for treasury			$ (161,000)			(161,000)
Repurchase of common stock in tender offer (in shares)	(2,000,000)
Repurchase of common stock in tender offer	$ (1,000)	(15,117,000)				(15,118,000)
Foreign currency translation				(1,744,000)		(1,744,000)
Net income					3,552,000	3,552,000
Balance (in shares) at Jun. 30, 2016	13,199,000		(790,000)
Balance at Jun. 30, 2016	$ 1,000	16,162,000	$ (2,374,000)	(2,985,000)	(5,785,000)	5,019,000
Common stock issued as compensation – Includes amortization of unvested shares (See Note 8) (in shares)	68,000
Common stock issued as compensation – Includes amortization of unvested shares (See Note 8)		510,000				510,000
Forfeiture of restricted stock (in shares)	(187,000)
Forfeiture of restricted stock
Common stock surrendered to pay for tax withholding (in shares)	(26,000)					(26,535)
Common stock surrendered to pay for tax withholding		(150,000)				$ (150,000)
Common stock issued for options exercised (in shares)	44,000					53,000
Common stock issued for options exercised		16,000				$ 16,000
Retirement of treasury stock (in shares)	(785,000)		785,000
Retirement of treasury stock		(2,358,000)	$ 2,358,000
Foreign currency translation				(298,000)		(298,000)
Net income					4,578,000	4,578,000
Balance (in shares) at Jun. 30, 2017	12,313,000		(5,000)
Balance at Jun. 30, 2017	$ 1,000	$ 14,180,000	$ (16,000)	$ (3,283,000)	$ (1,207,000)	$ 9,675,000

XML 19 R6.htm IDEA: XBRL DOCUMENT

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 4,578	$ 3,552
Adjustments to reconcile net income to net cash provided by operating activities:
Bad debt expense	283	257
Depreciation and amortization	537	648
Amortization of debt discount and debt issuance costs	139	32
Deferred income taxes	(1,523)	359
Stock-based compensation expense	375	383
Changes in assets and liabilities:
Accounts receivable	(386)	(881)
Inventories	(169)	(70)
Prepaid expenses and other assets	(6)	42
Income tax receivable	352	(535)
Accounts payable	(264)	(215)
Accrued expenses and other liabilities	514	(988)
Income tax payable	593
Payroll and other taxes	(314)	183
Deferred revenue	816	478
NET CASH PROVIDED BY OPERATING ACTIVITIES	5,525	3,245
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment	(96)	(207)
Capitalized software development costs	(2,729)	(2,759)
Business acquisition, net of cash acquired		(453)
NET CASH USED IN INVESTING ACTIVITIES	(2,825)	(3,419)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchase of common stock for treasury		(161)
Repurchase of common stock		(15,000)
Common stock surrendered to pay for tax withholding	(150)
Payment for acquisition of debt	(144)	(123)
Payment of fees for repurchase of common stock		(118)
Proceeds from long-term debt	9,519	10,729
Repayment of long-term debt	(11,081)	(950)
Proceeds from exercise of stock options	16
NET CASH USED IN FINANCING ACTIVITIES	(1,840)	(5,623)
Effect of exchange rate changes	(91)	(505)
Net change in cash and cash equivalents	769	(6,302)
Cash and cash equivalents at beginning of year	491	6,793
Cash and cash equivalents at end of year	1,260	491
Supplemental disclosures of cash flow information
Interest	413	221
Income taxes	11	665
Supplemental disclosures of non-cash investing and financing activities:
Issuance of common stock in settlement of accrued liabilities	154	93
Retirement of treasury stock	2,358
Common stock surrendered for payment of taxes		$ 341

XML 20 R7.htm IDEA: XBRL DOCUMENT

Note 1 - Summary of Significant Accounting Policies

12 Months Ended

Jun. 30, 2017

Significant Accounting Policies [Text Block]

NOTE

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

MAM Software Group, Inc. ("MAM" or

the "Company") is a leading provider of integrated information management solutions and services and a leading provider of cloud-based software solutions for the automotive aftermarket sector. The Company conducts its businesses through wholly owned subsidiaries with operations in Europe and North America. MAM Software Ltd. (“MAM Ltd.”) is based in Tankersley, Barnsley, United Kingdom (“UK”), Origin Software Solutions, Ltd. (“Origin”) is based in the UK (MAM Ltd. and Origin are collectively referred to as “MAM UK”), and MAM Software, Inc. (“MAM NA”) is based in the United States of America ("US") in Blue Bell, Pennsylvania.

Principles of Consolidation

Concentrations of Credit Risk

The Company has

significant off-balance-sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements.

Cash and Cash Equivalents

In the US, the Company maintains cash balances at financial institutions that are insured by the Federal Deposit Insurance Corporation up to

$250,000.

At times deposits held with financial institutions in the US

may

exceed the

$250,000

limit.

In the UK, the Company maintains cash balances at financial institutions that are insured by the Financial Services Compensation Scheme up to

85,000GBP.

At times deposits held with financial institutions in the UK

may

exceed the

85,000GBP

limit.

The Company maintains its cash accounts at financial institutions which it believes to be credit worthy. The Company considers all highly liquid debt instruments purchased with original maturities of

three

months or less to be cash equivalents to the extent the funds are

not

being held for investment purposes.

Customers

The Company performs periodic evaluations of its customers and maintains allowances for potential credit losses as deemed necessary. The Company generally does

not

require collateral to secure its accounts receivable. Credit risk is managed by discontinuing sales to customers who are delinquent. The Company estimates credit losses and returns based on management

’s evaluation of historical experience and current industry trends. Although the Company expects to collect amounts due, actual collections

may

differ from the estimated amounts.

customers

accounted for more than

10%

of the Company’s revenues for each of the years ended

June 30, 2017

and

2016.

customers accounted for more than

10%

of the Company’s accounts receivable at

June 30, 2017

and

2016.

Segment Reporting

The Company operates in

one

reportable segment.

Though the Company has

two

operational segments (MAM UK and MAM NA), the Company evaluated these segments in accordance with ASC

280

50,

Segment Reporting,

and determined that the segments have the same economic characteristics, are similar in the following areas and can therefore be aggregated into

one

reportable segment:

1.	The products and services are software and professional services
2.	The products are produced through professional services
3.	The customers for these products are primarily for the automotive aftermarket
4.	The method to distribute these products are via software that the customer can host locally or the Company will host
5.	They both operate in a non-regulatory environment

Geographic Concentrations

The Company conducts business in the US

and Canada (US and Canada are collectively referred to as the “NA Market”), and the UK and Ireland (UK and Ireland are collectively referred to as the “UK Market”). For customers headquartered in their respective countries, the Company derived approximately

63%

of its revenues from the UK,

35%

from the US,

from Ireland, and

from Canada during the year ended

June 30, 2017,

compared to

70%

of its revenues from the UK,

28%

from the US,

from Ireland, and

from Canada during the year ended

June 30, 2016.

June 30,

201

the Company maintained

76%

of its net property and equipment in the UK and the remaining

24%

in the US. At

June 30, 2016,

the Company maintained

79%

of its net property and equipment in the UK and the remaining

21%

in the US.

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the

US requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates made by the Company’s management include, but are

not

limited to, the collectability of accounts receivable, the realizability of inventories, the determination of the fair value of acquired intangible assets, the recoverability of goodwill and other long-lived assets, valuation of deferred tax assets and liabilities and the estimated fair value of stock options, warrants and shares issued for non-cash consideration. Actual results could materially differ from those estimates.

Fair Value of Financial Instruments

The Company

’s financial instruments consist principally of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, and other liabilities, and long-term debt. Financial assets and liabilities that are remeasured and reported at fair value at each reporting period are classified and disclosed in

one

of the following

three

categories:

•

Level

– Fair value based on quoted prices in active markets for identical assets or liabilities.

•

Level

– Fair value based on significant directly observable data (other than Level

quoted prices) or significant indirectly observable data through corroboration with observable market data. Inputs would normally be (i) quoted prices in active markets for similar assets or liabilities, (ii) quoted prices in inactive markets for identical or similar assets or liabilities or (iii) information derived from or corroborated by observable market data.

•

Level

– Fair value based on prices or valuation techniques that require significant unobservable data inputs. Inputs would normally be a reporting entity’s own data and judgments about assumptions that market participants would use in pricing the asset or liability.

Determining which category an asset or liability falls within the hierarchy

may

require significant judgment. The Company evaluates its hierarchy disclosures each quarter. The Company believes that the carrying values of all financial instruments, except long-term debt, approximate their values due to their nature and respective durations.

The carrying value of long-term debt approximates fair value based on borrowing rates currently available to the Company.

Allowance for Doubtful Accounts

’ ability or inability to pay outstanding balances. If the financial condition of the Company's customers were to deteriorate, resulting in impairment of their ability to make payments, additional allowances

may

be required. The differences could be material and could significantly impact cash flows from operating activities.

Inventories

Inventories are stated at the lower of cost or current estimated market value. Cost is determined using the

first

-in,

first

-out method. Inventories consist primarily of hardware that will be sold to customers. The Company periodically reviews its inventories and records a provision for excess and obsolete inventories based primarily on the Company

’s estimated forecast of product demand. Once established, write-downs of inventories are considered permanent adjustments to the cost basis of the obsolete or excess inventories.

Property and Equipment

Property and equipment are stated at cost, and are depreciated using the straight-line method over the estimated useful lives of the related assets, ranging from

three

five

years. Leasehold improvements are amortized using the straight-line method over the lesser of the estimated useful lives of the assets or the related lease terms. Equipment under capital lease obligations is depreciated over the shorter of the estimated useful lives of the related assets or the term of the lease. Maintenance and routine repairs are charged to expense as incurred. Significant renewals and betterments are capitalized. At the time of retirement or other disposition of property and equipment, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated statements of comprehensive income.

oftware Development Costs

the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product and, the straight-line method over the remaining estimated economic life (a period of

three

ten

years) of the product including the period being reported on. Amortization of capitalized software development costs are included in the cost of revenues line on the consolidated statements of comprehensive income. If the future market viability of a software product is less than anticipated, impairment of the related unamortized development costs could occur, which could significantly impact the Company’s results of operations.

Amortizable Intangible Assets

Amortizable intangible assets consist of completed software technology, customer

contracts/relationships, automotive data services, and acquired intellectual property and are recorded at cost. Completed software technology and customer contracts/relationships are amortized using the straight-line method over their estimated useful lives of

years, automotive data services are amortized using the straight-line method over their estimated useful lives of

years and acquired intellectual property is amortized over the estimated useful life of

years.

Goodwill

Goodwill is

not

amortized, but rather is tested at least annually for impairment.

Goodwill is subject to impairment reviews by applying a fair-value-based test at the reporting unit level, which generally represents operations

one

level below the segments reported by the Company. As of

June 30,

201

the Company does

not

believe there is an impairment of its goodwill. There can be

assurance, however, that market conditions will

not

change or demand for the Company’s products and services will continue, which could result in impairment of goodwill in the future.

Goodwill activity for the years ended

June 30,

201

and

2016

was as follows (in thousands):



Balance, July 1, 2015	$	9,202
Acquisition of Origin (see Note 2)		202
Effect of exchange rate changes		(1,041	)
Balance, June 30, 2016	$	8,363
Effect of exchange rate changes		(172	)
Balance, June 30, 2017	$	8,191

Long-Lived Assets

The Company

’s management assesses the recoverability of long-lived assets (other than goodwill discussed above) upon the occurrence of a triggering event by determining whether the carrying value of long-lived assets over their remaining lives can be recovered through projected undiscounted future cash flows over their remaining useful lives. The amount of long-lived asset impairment, if any, is measured based on fair value and is charged to operations in the period in which long-lived asset impairment is determined by management. At

June 30, 2017,

management believes there is

impairment of its long-lived assets. There can be

assurance, however, that market conditions will

not

change or demand for the Company’s products and services will continue, which could result in impairment of long-lived assets in the future.

Debt Issuance Costs

Debt issuance costs represent costs incurred in connection with the issuance of long-term debt.

Debt issuance costs are amortized over the term of the financing instrument using the effective interest method. Debt issuance costs are presented in the condensed consolidated balance sheets as an offset against the current and non-current portions of long-term debt.

Issuance of Equity Instruments to Non-Employees

All issuances of the Company

’s equity instruments to non-employees are measured at fair value based upon either the fair value of the equity instruments issued or the fair value of consideration received, whichever is more readily determinable. The majority of stock issuances for non-cash consideration pertains to services rendered by consultants and others and has been valued at the fair value of the equity instruments on the dates issued.

’s performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement. Assets acquired in exchange for the issuance of fully vested, non-forfeitable equity instruments are

not

presented or classified as an offset to equity on the grantor’s balance sheet once the equity instrument is granted for accounting purposes.

Stock-Based Compensation

The Company accounts for stock-based compensation under the provisions of ASC

No.

718,

Compensation - Stock Compensation

(“ASC

718”

). ASC

718

requires the recognition of the fair value of the stock-based compensation in net income. Compensation expense associated with market-based restricted stock is determined using a Monte-Carlo valuation model, and compensation expense associated with time-based restricted stock is determined based on the number of shares granted and the fair value on the date of grant. For valuing stock options awards, the Company has elected to use the Black-Scholes model. For the expected term, the Company uses a simple average of the vesting period and the contractual term of the option. Volatility is a measure of the amount by which the Company’s stock price is expected to fluctuate during the expected term of the option. For volatility the Company considers its own volatility as applicable for valuing its options and warrants. With the adoption of ASU

2016

during the year ended

June 30, 2017,

forfeitures will be accounted prospectively for as they are incurred, rather than estimated at time of grant. The risk-free interest rate is based on the relevant US Treasury Bill Rate at the time of each grant. The dividend yield represents the dividend rate expected to be paid over the option’s expected term; the Company currently has

plans to pay dividends. The fair value of stock-based awards is amortized over the vesting period of the award or expected vesting date of the market-based restricted shares and the Company elected to use the straight-line method for awards granted.

Revenue Recognition

not

met, revenue recognition is deferred until such time as all of the criteria are met.

In those instances, in which arrangements include significant customization, contractual milestones, acceptance criteria or other contingencies, the Company accounts for the arrangements

using contract accounting, as follows:

•	when customer acceptance can be estimated, but reliable estimated costs to complete cannot be determined, expenditures are capitalized as work-in process and deferred until completion of the contract at which time the costs and revenues are recognized.
•	when customer acceptance cannot be estimated based on historical evidence, costs are expensed as incurred and revenue is recognized at the completion of the contract when customer acceptance is obtained.

The Company recognizes revenue on a net basis, which excludes sales tax collected from customers and remitted to governmental authorities.

Cost of Revenues

third

parties for the use of their technology, services and data. Included in costs of revenues are cost of professional services, which consists primarily of employee-related costs associated with these services, the cost of subcontractors, certain

third

-party fees

, and allocated overhead.

third

parties for the use of their technology, services or data, or as our sales volume grows, the fees paid to use such technology or services

may

increase. The timing of these additional expenses will affect our cost of revenues, both in terms of absolute dollars and as a percentage of revenues, in the affected periods.

Advertising Expense

The Company expenses advertising costs as incurred. For the years ended

June 30,

201

and

2016,

advertising expense totaled

$0.4

million and

$0.4

million, respectively.

Foreign Currency

Management has determined that the functional currency of its subsidiaries is the local currency. Assets and liabilities of the

UK subsidiaries are translated into US dollars at the year-end exchange rates. Income and expenses are translated at an average exchange rate for the year and the resulting translation gain (loss) adjustments are accumulated as a separate component of stockholders’ equity. The translation (loss) gain adjustment totaled $(

0.3

) million and $(

1.7

) million for the years ended

June 30, 2017

and

2016,

respectively.

Foreign currency gains and losses from transactions denominated in other than respective local currencies are included in income. The Company had

foreign currency transaction gain (loss) for all periods presented.

Comprehensive Income

Comprehensive income includes all changes in equity (net assets) during a period from non-owner sources. For the years ended

June 30,

201

and

2016,

the components of comprehensive income consist of foreign currency translation gains (losses).

Income Taxes

The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. During the year ended

June 30, 2017,

the Company recognized penalties of

$0.1

million on the Company’s consolidated balance sheet and in the consolidated statement of comprehensive income. During the year ended

June 30, 2016,

the Company did

not

recognize any interest and/or penalties.

Basic and Diluted Earnings Per Share

not

assume conversion, exercise or contingent exercise of securities that would have an anti-dilutive effect on earnings. For the year

s ended

June 30, 2017

and

2016

there were common share equivalents of

54,008

and

175,863,

respectively, included in the computation of the DEPS. For the years ended

June 30, 2017

and

2016,

503,951

and

691,505

shares of common stock, respectively, vest based on the market price of the Company’s common stock and were excluded from the computation of DEPS because the shares have

not

vested, but

stock options were excluded from the computation of DEPS.

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computation

s for the years ended

June 30 (

in thousands, except for per share amounts):

	2017		2016
Numerator:
Net income	$	4,578	$	3,552

Denominator:
Basic weighted-average shares outstanding		11,732		12,314
Effect of dilutive securities		54		176
Diluted weighted-average diluted shares		11,786		12,490
Basic earnings per common share	$	0.39	$	0.29
Diluted earnings per common share	$	0.39	$	0.28

Reclassification

Certain expenses were reclassified from

depreciation and amortization to cost of revenues in the accompanying consolidated statement of comprehensive income for the year ended

June 30, 2016,

in order to conform to the current period presentation.

The Company adopted Accounting Standards Update ("ASU")

2015

03,

Imputation of Interest - Simplifying the Presentation of Debt Issuance Costs,

on a retrospective basis on

July 1, 2016

and prior period amounts have been reclassified to conform to the current period presentation. As of

June 30, 2016,

net debt issuance costs of

$91,000

were reclassified in the consolidated balance sheet from other long-term assets to an offset against the current and non-current portions of long-term debt.

Recent Accounting Pronouncements

Recently Adopted Accounting Standards

March 2016,

the FASB issued ASU

2016

09,

Improvements to Employee Share-Based Payment Accounting.

As required by ASU

2016

09,

excess tax benefits recognized on stock-based compensation expense are reflected in the Company’s consolidated statements of comprehensive income as a component of the provision for income taxes on a prospective basis. Excess tax benefits are classified as an operating activity in our consolidated statements of cash flows and we have applied this provision on a retrospective basis. We elected to early adopt this standard in the

fourth

quarter of our fiscal year that began

July 1, 2016.

As of

June 30, 2016,

we had excess tax benefits for which benefits could

not

be previously recognized of approximately

$0.7

million, due to net operating loss carryforwards resulting from the windfall tax benefits. Upon adoption, we recognized the previously unrecognized excess tax benefits of

$0.7

million with an offsetting increase in our valuation allowance using a modified retrospective method through a cumulative effect adjustment to the accumulated deficit, with

net impact on our financial statements at the effective date of

July 1, 2016.

In addition, we have elected to account for forfeitures as they occur, rather than estimate expected forfeitures over the course of a vesting period. There was

additional impact to the Company’s consolidated financial statements as a result of adopting ASU

2016

09.

November 2015,

the FASB issued

ASU

2015

17,

Balance Sheet C

lassification of Deferred Taxes

, an update to ASC

740,

Income Taxes (“Update”). Current GAAP requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. To simplify the presentation of deferred income taxes, the amendments in this Update require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The current requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is

not

affected by the amendments in this update. For public business entities, the amendments in this Update are effective for financial statements issued for annual periods beginning after

December 15, 2016,

and interim periods within those annual periods. The Update permits earlier application by all entities as of the beginning of any interim or annual reporting period. This Update

may

be applied to all deferred tax liabilities and assets prospectively. The Company chose to adopt the Update prospectively beginning in the year ended

June 30, 2017.

Accounting Standards

Not

Yet Adopted

May 2017,

the FASB issued ASU

2017

09,

Compensation - Stock Compensation (Topic

718

): Scope of Modification Accounting

, which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in ASC Topic

718.

Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changes as a result of the change in terms or conditions. ASU

2017

will be effective for the Company for the fiscal year ended

June 30, 2019

and interim reporting periods within that year. Early adoption is permitted. The Company expects the adoption of this guidance will

not

have a material effect on the Company’

s consolidated financial statements.

January 2017,

the FASB issued

ASU

2017

04,

Intangibles-Goodwill and Other (Topic

350

): Simplifying the Test for Goodwill Impairment

. This update simplifies the subsequent measurement of goodwill by eliminating step

two

from the goodwill impairment test. Under the new guidance, an entity performs its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value,

not

to exceed the carrying amount of goodwill allocated to the reporting unit. ASU

2017

will be effective for the Company for the fiscal year ended

June 30, 2021.

Early adoption is permitted. The Company does

not

expect the adoption of ASU

2017

to have a significant impact on its consolidated financial statements.

August 2016,

the FASB issued ASU

2016

15,

Statement of Cash Flows (Topic

230

), Classification of Certain Cash Receipts and Cash Payments

. The update provides guidance for how certain cash receipts and cash payments are to be presented on the statement of cash flows. ASU

2016

will be effective for the Company beginning the

first

quarter of fiscal

2018.

Early adoption is permitted. ASU

2016

is to be adopted using the retrospective transition method, unless it is impracticable, in which case it can be applied prospectively as of the earliest practical date. The Company does

not

expect the adoption of ASU

2016

to have a significant impact on the disclosure or cash flow presentation in its consolidated financial statements.

February 2016,

the FASB issued ASU

2016

02,

Leases

. The update requires lessees to present right-of-use assets and lease liabilities on the balance sheet for all leases with terms longer than

months. The guidance is to be applied using a modified retrospective approach at the beginning of the earliest comparative period in the financial statements and will be effective for the Company for the fiscal year ended

June 30, 2021.

The Company is currently assessing the impact the adoption of ASU

2016

will have on its consolidated financial statements.

May 2014,

the FASB issued ASU

2014

, Revenue from Contracts with Customers

(Topic

606

), which amends the existing accounting standards for revenue recognition. ASU

2014

is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. In

July

2015,

the FASB provided a

one

-year delay in the effective date of ASU

2014

09,

to be effective for annual reporting periods beginning after

December

15,

2017,

including interim periods within that reporting period, and a permission to early adopt for annual and interim periods beginning after

December

15,

2016.

The Company has performed a review of the new revenue standard and is monitoring the activity of the FASB and the transition resource group as it relates to specific interpretative guidance. The Company is assessing the impact of the

five

-step model of the new standard on its contracts compared to the results of current accounting practice. The Company plans to adopt ASU

2014

July 1, 2018.

The Company has

not

yet determined whether it will adopt the provisions of ASU

2014

on a retrospective basis or through a cumulative adjustment to retained earnings. The new standard could change the amount and timing of revenue and costs under certain arrangement types and could increase the administrative burden on the Company’s operations to properly account for customer contracts and provide the more expansive required disclosures. The Company is currently evaluating the impact of adopting ASU

2014

09,

but has

not

yet determined what effect, if any, the new guidance will have on its consolidated financial position, results of operations or cash flows.

August 2014,

the FASB issued ASU

2014

15,

Presentation of Financial Statements-Going Concern

. Currently, there is

guidance in accounting principles generally accepted in the US about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related footnote disclosures. The amendments require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in US auditing standards. Specifically, the amendments (

) provide a definition of the term substantial doubt, (

) require an evaluation every reporting period including interim periods, (

) provide principles for considering the mitigating effect of management’s plans, (

) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (

) require an express statement and other disclosures when substantial doubt is

not

alleviated, and (

) require an assessment for a period of

one

year after the date that the financial statements are issued (or available to be issued). The amendments in this ASU are effective for the reporting periods beginning after

December 15, 2016

and early application is permitted. The Company is currently assessing the impact the adoption of ASU

2014

will have on its consolidated financial statements.

XML 21 R8.htm IDEA: XBRL DOCUMENT

Note 2 - Business Acquisition	12 Months Ended
Note 2 - Business Acquisition	Jun. 30, 2017
Notes to Financial Statements
Business Combination Disclosure [Text Block]	NOTE 2. BUSINESS ACQUISITION On July 1, 2015, MAM Ltd. acquired 100% of the stock of Origin, a UK-based provider of e-commerce solutions for the automotive aftermarket. With the acquisition of Origin, MAM is able to strengthen its e-commerce strategy by being able to provide customers with a range of e-commerce solutions for the automotive aftermarket. The Company paid $503,000 at closing of the acquisition. The Company will also make future cash payments of $416,000 and issue stock consideration of $283,000 in the future if Origin reaches established earnings targets. The Company recorded the estimated fair value of the contingent consideration of $470,000 in other long-term liabilities on its consolidated balance sheet as of June 30, 2017. In connection with the acquisition, the Company incurred acquisition-related costs of $53,000, which were expensed and included in general and administrative expenses in the accompanying consolidated statement of comprehensive income for the year ended June 30, 2016. The Company allocated the purchase consideration to acquire Origin to ( 1 ) net assets acquired of $177,000, ( 2 ) finite-lived intangible assets of $1.0 million for acquired intellectual property (with an estimated useful life of 10 years), ( 3 ) a deferred tax liability of $202,000, and ( 4 ) goodwill of $202,000. The goodwill from this acquisition is non-deductible for tax purposes. The results of operations of Origin have been included in the Company's consolidated statements of comprehensive income from the date of acquisition, however the results from Origin were not significant to the Company ’s consolidated results of operations and thus pro forma information is not presented.

XML 22 R9.htm IDEA: XBRL DOCUMENT

Note 3 - Property and Equipment

12 Months Ended

Jun. 30, 2017

Property, Plant and Equipment Disclosure [Text Block]

OTE

PROPERTY AND EQUIPMENT

Property and equipment consist of the following (in thousands):

	As of
	June 30, 2017			June 30, 2016
Leasehold improvements	$	396		$	396
Computer and office equipment		928			869
Equipment under capital leases		10			10
Furniture and equipment		476			477
Total property, plant and equipment		1,810			1,752
Less: accumulated depreciation and amortization		(1,299	)		(1,171	)
Total property, plant and equipment, net	$	511		$	581

Depreciation expense on property and equipment for the years ended

June 30,

201

and

2016

was

$0.1

million and

$0.3

million, respectively.

XML 23 R10.htm IDEA: XBRL DOCUMENT

Note 4 - Intangible Assets

12 Months Ended

Jun. 30, 2017

Intangible Assets Disclosure [Text Block]

NOTE

INTANGIBLE ASSETS

Intangible assets consist of the following

June 30, 2017 (

dollars in thousands):

	Average Estimated Useful Life (in years)			Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Completed software technology	9	to	10	$	1,061	$	(1,061	)	$	-
Customer contracts / relationships		10			527		(527	)		-
Automotive data services		20			255		(255	)		-
Acquired intellectual property		10			798		(159	)		639
Software development costs	3	to	10		10,331		(2,697	)		7,634
Total				$	12,972	$	(4,699	)	$	8,273

Intangible assets consist of the following

June 30, 2016 (

dollars in thousands):

	Average Estimated Useful Life (in years)			Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Completed software technology	9	to	10	$	1,093	$	(1,093	)	$	-
Customer contracts / relationships		10			543		(543	)		-
Automotive data services		20			262		(262	)		-
Acquired intellectual property		10			822		(83	)		739
Software development costs	3	to	10		7,887		(2,653	)		5,234
Total				$	10,607	$	(4,634	)	$	5,973

For the years ended

June 30,

201

and

2016,

the Company recognized amortization expense on its software development costs and other amortizable intangible assets of

$0.4

million and

$0.4

million, respectively.

Estimated future amortization of software development costs and intangibles is as follows

(in thousands):

Years Ending June 30,
2018	$	706
2019		953
2020		898
2021		873
2022		873

XML 24 R11.htm IDEA: XBRL DOCUMENT

Note 5 - Long-term Debt

12 Months Ended

Jun. 30, 2017

Debt Disclosure [Text Block]

NOTE

LONG-TERM DEBT

	As of
( dollars in thousands)	June 30, 201 7			June 30, 2016
Debt obligations:
Revolving loan facility	$	-		$	1,150
Term loan		8,217			8,550
Equipment financing		-			78
Less: unamortized debt issuance cost		(97	)		(91	)
Total		8,120			9,687
Less current portion		(1,734	)		(1,879	)
Long-term debt	$	6,386		$	7,808

December 1, 2015,

the Company entered into a credit agreement with J.P. Morgan Chase Bank, N.A.

(“JPM Credit Facility”) to provide for borrowings up to

$12.0

million consisting of a

$9.5

million term loan and a

$2.5

million revolver. On

December 1, 2015,

the Company borrowed

$10.5

million under the JPM Credit Facility to fund a portion of the Tender Offer (see Note

). On

September 26, 2016,

the Company entered into an amendment to its JPM Credit Facility (the "Amendment", and as amended, the "Prior Credit Facility"). The Amendment changed certain loan covenants, including the financial ratios and liquidity requirements.

March 2, 2017,

the Company entered into a credit facility ("

New Credit Facility") with Univest Bank and Trust Co. (“Univest”). In connection with the New Credit Facility, the parties entered into ancillary agreements, including a credit agreement, a revolving credit note and a term note (collectively, the "Credit Agreements"). The New Credit Facility allows for borrowings up to

$11.5

million consisting of an

$8.75

million term loan and a

$2.75

million revolver. The Company used the initial proceeds of the New Credit Facility to repay all of its obligations under its Prior Credit Facility with J.P. Morgan Chase Bank, N.A. The borrowings under the Credit Agreements bear interest at a variable rate based on either LIBO Rate (as defined in the Credit Agreements) or the Univest Float Rate (as defined in the Credit Agreements), plus an applicable margin of

2.75%

3.25%,

based upon financial covenants. The term note requires

monthly

payments of

$133,333

through

December 1, 2017,

then

$158,333

through

December 1, 2018,

and

$175,000

thereafter through maturity. The maturity date under the Credit Agreements is

August 1, 2021.

As of

June 30, 2017,

the Company did

not

have any borrowings under its revolving credit note. Under the terms of the Credit Agreements, the Company is required to comply with certain loan covenants, which include, but are

not

limited to, the maintenance of certain financial ratios as well as certain financial reporting requirements and limitations. The Company’s obligations under the Credit Agreements are secured by all of the Company’s US assets and are guaranteed by the Company’s US wholly-owned subsidiary, MAM Software Inc. Additionally, the Company pledged

65%

of the stock of MAM Software Limited, its UK subsidiary. As of

June 30, 2017,

the Company was in compliance with its loan covenants.

Future minimum payments under long-term debt outstanding at

June 30,

201

are as follows (in thousands):

For the years ending June 30,
2018	$	1,775
201 9		2,017
2020		2,100
2021		2,100
2022		225
Total debt payments	$	8,217

XML 25 R12.htm IDEA: XBRL DOCUMENT

Note 6 - Income Taxes

12 Months Ended

Jun. 30, 2017

Income Tax Disclosure [Text Block]

NOTE

INCOME TAXES

The Company is subject to taxation in the US,

UK and various US state jurisdictions. The Company’s tax years for

1999

and forward are subject to examination by the US and state tax authorities due to losses incurred since inception. The Company is currently

not

under any material examination by any taxing authorities.

The Company follows the provisions of ASC

740

10,

Income Taxes

, that defines a recognition threshold and measurement attributes for the financial recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC

740

also provides guidance on the de-recognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition. Under ASC

740

10,

the impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than-

not

to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will

not

be recognized if it has less than a

50%

likely of being sustained.

The Company does

not

have any unrecognized tax benefits that, if recognized, would affect the effective tax rate.

The Company

’s practice is to recognize interest and/or penalties related to income matters in income tax expense. During the year ended

June 30, 2017,

the Company recognized penalties of

$0.1

million. There were

interest and penalties recognized by the Company for the year ended

June 30, 2016.

Income (

loss) before income taxes for the years ended

June 30, 2017

and

2016

was taxed under the following jurisdictions (in thousands):

	As of
	June 30, 2017		June 30, 2016
United States of America	$	935	$	246
United Kingdom		2,723		3,495
	$	3,658	$	3,741

The provision (benefit) for income taxes consists of the following for the years ended

June 30,

201

and

2016

(in thousands):

	US Federal			US State			UK Corporate			Total
2017
Current	$	473		$	111		$	19		$	603
Deferred		(1,550	)		(129	)		156			(1,523	)
Total	$	(1,077	)	$	(18	)	$	175		$	(920	)

2016
Current	$	-		$	31		$	(162	)	$	(131	)
Deferred		-			-			320			320
Total	$	-		$	31		$	158		$	189

As stated in the recent accounting pronouncements, the Company early adopted ASU

2016

09.

As of

June 30, 2016,

prior to the adoption of ASU

2019

09,

the Company had excess tax benefits for which benefits could

not

be previously recognized of approximately

$0.7

million, due to net operating loss carryforwards resulting from the windfall tax benefits. On

July 1, 2016,

upon the effective date of the adoption, the Company recognized the previously unrecognized excess tax benefits of

$0.7

million with an offsetting increase in the Company’s valuation allowance using a modified retrospective method through a cumulative effect adjustment to the accumulated deficit, with

net impact on the Company’s financial statements.

June 30,

201

the Company had net US deferred tax assets of approximately

$2.7

million. Due to uncertainties surrounding the Company’s ability to generate future capital gains, a valuation allowance has been established to offset carry-forwards of its capital losses due to investments previously written off. Additionally, the future utilization of the Company’s federal and state NOLs to offset future taxable income have been determined to be subject to annual limitation pursuant to Internal Revenue Code (“IRC”) Sections

382

and

383

as a result of ownership changes that have previously occurred.

Through its Section

382

study, the Company has analyzed any NOLs from its acquired subsidiaries to determine the maximum potential future tax benefit that might be available, and the corresponding limitation imposed based on IRC Section

382.

As a result, by the year ended

June 30, 2011,

the Company adjusted the aforementioned net operating losses previously estimated. The outcome resulted in a determination that it could utilize, annually, approximately

$0.

million of previously incurred NOLs; presuming, however, there is taxable income in future periods affording utilization prior to expiration.

June 30,

201

the Company had combined federal and state NOLs of approximately

$4.4

million and

$2.6

million, respectively. The federal and state tax loss carry-forwards will begin to expire in

2019

and

2024,

respectively, unless previously utilized.

Significant components of the Company

’s net deferred tax assets at

June 30, 2017

and

2016

are shown below. A valuation allowance of

$1.7

million and

$4.9

million has been established to offset the net deferred tax assets as of

June 30, 2017

and

2016,

respectively. The

$3.2

million net decrease in the valuation allowance for the year ended

June 30, 2017

is primarily attributable to the partial release of the valuation allowance during the

three

months ended

June 30, 2017.

The Company released the valuation allowance on all of its domestic deferred tax assets, except for capital loss carry-forwards that are

not

more likely than

not

to be realized.

Included in the Company

’s current year tax benefit for the change in valuation allowance of

$3.9M

is the excess tax benefit of

$0.7

million.

The tax effects of temporary differences and carry-forwards that give rise to significant portions of deferred tax assets (liabilities) consist of the following at

June 30,

201

and

2016

(in thousands):

	June 30,			June 30,
	2017			2016
Deferred tax assets:
State taxes	$	36		$	1
Net operating loss carry-forwards		1,549			2,759
Write-down of investments		1,716			1,745
Equity-based compensation		63			67
Reserves and accruals		329			274
Deferred rent		4			3
Tax credits		9			-
Domestic intangibles and other long-lived assets		-			101
Total deferred tax assets		3,706			4,950

Deferred tax liabilities:
Foreign intangible and other long-lived assets		(718	)		(546	)
Domestic i ntangible and other long-lived assets		(110	)
Unremitted foreign earnings		(165	)		-
Total deferred tax liabilities		(993	)		(546	)

Valuation allowance		(1,716	)		(4,939	)
Net deferred tax assets ( liabilities )	$	997		$	(535	)

The provision

(benefit) for income taxes for the years ended

June 30, 2017

and

2016

differs from the amount computed by applying the US federal income tax rates to net income from continuing operations before taxes as a result of the following (in thousands):

	June 30,
	2017			2016
Taxes at federal statutory rates	$	1,244		$	1,272
State taxes, net of federal benefit		93			8
Rate changes		289			(19	)
Unrecognized tax benefits		88			-
Permanent items and other		116			100
Research and development		(333	)		(577	)
NOL expiration		3			-
Differential in UK corporate tax rate		(388	)		(515	)
Unremitted foreign earnings		164			-
Stock compensation		(237	)		-
Foreign dividends		9,452			-
Foreign tax credits		(7,522	)		-
Change in valuation allowance		(3,889	)		(80	)
(Benefit) provision for income taxes	$	(920	)	$	189

During the year ended

June 30, 2016,

the Company completed a formal research and development expense study in the UK and identified qualifying expenses related to the prior years which resulted in a reduction in the tax provision of

$0.2

million, which is included in the rate reconciliation above.

XML 26 R13.htm IDEA: XBRL DOCUMENT

Note 7 - Commitments and Contingencies

12 Months Ended

Jun. 30, 2017

Commitments and Contingencies Disclosure [Text Block]

NOTE

COMMITMENTS AND CONTINGENCIES

Legal Matters

pending material legal proceedings.

Indemnities and Guarantees

The Company has made certain indemnities and guarantees, under which it

may

be required to make payments to a guaranteed or indemnified party, in relation to certain actions or transactions. The Company indemnifies its directors, officers, employees and agents, as permitted under the laws of the State of Delaware. In connection with its

New Credit Facility (see Note

), the Company indemnified the lender for certain losses, claims, and other liabilities that are standard for this type of agreement. In connection with its facility leases, the Company has indemnified its lessors for certain claims arising from the use of the facilities. In connection with its customers’ contracts the Company indemnifies the customer that the software provided does

not

violate any US patent. The duration of the guarantees and indemnities varies, and is generally tied to the life of the agreement. These guarantees and indemnities do

not

provide for any limitation of the maximum potential future payments the Company could be obligated to make. Historically, the Company has

not

been obligated to make nor incurred any payments for these obligations and, therefore,

liabilities have been recorded for these indemnities and guarantees in the accompanying consolidated balance sheets.

Operating Leases

The Company leases its facilities and certain equipment pursuant to month-to-month and non-cancelable operating lease agreements that expire on various dates through

March 2028.

Terms of the leases provide for monthly payments ranging from

$900

$19,800.

The Company incurred rent expense totaling approximately

$0.5

million and

$0.4

million for the years ended

June 30, 2017

and

2016,

respectively. Future annual minimum payments under non-cancelable operating leases are as follows (in thousands):

For the years ended June 30,
2018	$	725
2019		669
2020		592
2021		414
2022		400
Thereafter		1,323
Total operating lease obligations	$	4,123

XML 27 R14.htm IDEA: XBRL DOCUMENT

Note 8 - Stockholders' Equity

12 Months Ended

Jun. 30, 2017

Stockholders' Equity Note Disclosure [Text Block]

NOTE

STOCKHOLDERS

’ EQUITY

Common Stock

The Company issues shares of common stock to the non-management members of the Board of Directors under the Company

’s

2007

Long Term Incentive Plan (

"2007

LTIP") and

2017

Equity Incentive Plan (

“2017

EIP”) in respect of quarterly compensation. The shares vest over a

three

-year period and are issued quarterly. The Company also gives the non-management members of the Board of Directors the option to receive shares of common stock in lieu of cash compensation.

July 1, 2015,

the Company approved the issuance of

47,663

shares of common stock to the non-management members of the Board of Directors under the Company

’s

2007

LTIP in respect of quarterly compensation. The shares vest over a

three

-year period and are issued quarterly. The shares were valued at approximately

$255,000,

based on the closing market price of the Company’s common stock on the date of the grant.

January 6,

2017,

the Company approved the issuance of

37,795

shares of common stock to the non-management members of the Board of Directors under the Company’s

2017

EIP in respect of quarterly compensation. The shares vest over a

three

-year period and are issued quarterly. The shares were valued at approximately

$241,000,

based on the closing market price of the Company’s common stock on the day of the grant.

During the years ended

June

30,

2017

and

2016,

the Company issued

55,010

and

57,126

shares of common stock, respectively, for the vesting of shares granted to the non-management members of the Board of Directors under the Company’s

2007

LTIP and

2017

EIP and in lieu of cash compensation.

Tender Offer

December 1, 2015,

the Company completed a cash tender offer (the “Tender Offer”) and purchased

2.0

million shares of its common stock at a purchase price of

$7.50

per share for a total purchase price of

$15.0

million. The Company canceled and retired the shares purchased pursuant to the Tender Offer.

In connection with the Tender Offer, the Company incurred costs of

$0.1

million directly related to the Tender Offer, which were recorded in additional paid-in capital.

Treasury Stock

During the year ended

June 30, 2017,

the Company retired approximately

785,000

shares of common stock in treasury, at cost of

$2.4

million.

During the year

ended

June 30, 2016,

the Company repurchased, under its stock repurchase program,

29,695

shares of common stock at a cost of

$0.2

million. As of

June 30, 2017,

the Company has repurchased a total of

1,982,235

shares at a cost of

$4.7

million, pursuant to a stock repurchase program approved by the Company’s Board of Directors. The stock repurchase program was cancelled on

October 30, 2015

in connection with the Tender Offer.

Stock-Based Compensation

Stock-based compensation expense for restricted stock and stock

issuances of

$0.4

million and

$0.4

million was recorded in the years ended

June 30, 2017

and

2016,

respectively, and was recorded in general and administrative expenses in the statements of comprehensive income. As of

June 30, 2017,

$0.2

million of total unrecognized stock-based compensation expense related to restricted stock is expected to be recognized over approximately

2.1

years.

A summary of the Company's common stock option activity is presented below (shares in thousands):

	Options Outstanding
	Number of Shares (in thousands)			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value (in thousands)
Op tions outstanding - July 1, 2016		121		$	1.23
Options granted		-			-
Options exercised		(53	)		1.13
Options cancelled		-			-
Options outstanding - Jun e 30, 2017		68		$	1.30		4.0	$	338
Opt ions exercisable - June 30, 2017		68		$	1.30		4.0	$	338
Options exerci sable and vested - June 30, 2017		68		$	1.30		4.0	$	338

June 30,

201

During the year ended

June 30, 2017,

stock options to purchase

approximately

33,000

shares of common stock were exercised for cash proceeds of

$16,300.

In addition, stock options to purchase approximately

20,000

shares of common stock were exercised on a cashless basis resulting in the issuance of

11,432

shares of common stock. The aggregate intrinsic value of the stock options exercised during the year ended

June 30, 2017

was

$0.3

million.

A summary of the Company's restricted common stock activity is presented below (shares in thousands):

				Weighted Average
	Number of Shares			Initial Value Price
	(in thousands)			Per Share
Restricted stock outstanding - July 1, 2016		776		$	0.87
Issuance of restricted stock		-			-
Vesting		(85	)		0.39
Forfeitures		(187	)		0.35
Restricted stock outstanding - June 30, 201 7		504		$	0.94

A summary of the vesting levels of the Company's restricted common stock is presented below

(shares in thousands):

			Weighted Average
	Number of		Initial Value Price
	Shares		Per Share
30 day VWAP per share vesting level (1):
$8.00 per share		294	$	0.48
$9.00 per share		82	$	1.25
$10.00 per share		48	$	1.79
$11.00 per share		48	$	1.79
$12.00 per share		32	$	1.79

(

)

The outstanding restricted stock becomes vested when the Company

’s

-day volume weighted average price (“VWAP”) per share is at or above these levels.

During the years ended

June 30,

201

and

2016,

the Company withheld

26,535

and

60,612

shares of common stock at a cost of

$0.2

million and

$0.3

million, respectively, for the payment of taxes on shares that vested during the year.

Employee Stock Purchase Plan

US employees purchase stock at a price equal to the lesser of

percent of the fair market value of a share of the Company’s common stock on the Exercise Date (as defined under the ESPP Plans) of the current Offering Period (as defined under the ESPP Plans) or

percent of the fair market value of the Company's common stock on the Grant Date (as defined under the ESPP Plans) of the Offering Period. UK employees purchase at a price equal to the lesser of

100

percent of the fair market value of a share of the Company’s common stock on the Exercise Date of the current Offering Period or

100

percent of the fair market value of the Company's common stock on the Grant Date of the Offering Period, but receive a

percent matching contribution from the Company.

During the

year ended

June 30, 2017,

the Company issued

13,835

shares of common stock to employees, including executive officers, under the ESPP in lieu of compensation

, which shares of common stock were valued at approximately

$0.1

million based on the closing market price of the Company’s common stock on

June 30, 2016

and

July 1, 2016.

XML 28 R15.htm IDEA: XBRL DOCUMENT

Note 9 - Employee Benefit Plans	12 Months Ended
Note 9 - Employee Benefit Plans	Jun. 30, 2017
Notes to Financial Statements
Pension and Other Postretirement Benefits Disclosure [Text Block]	NOTE 9. EMPLOYEE BENEFIT PLANS The Company has a retirement plan that complies with Section 401 (k) of the Internal Revenue Code. All US employees are eligible to participate in the plan. The Company’s contribution to the 401 (k) Plan is at the discretion of the Board of Directors. The Company matches 100% of elective deferrals subject to a maximum of 3% of the participant’s eligible earnings. The Company’s matching contributions to the 401 (k) for the years ended June 30, 2017 and 2016 were $0.1 million and $0.1 million, respectively. The Company has a defined contribution retirement plan ("UK Plan") that all UK employees are eligible to participate in. The Company’s contribution to the UK Plan is at the discretion of the Board of Directors. The Company matches 100% of elective deferrals subject to a maximum of 3% of the participant’s eligible earnings. The Company’s matching contributions to the UK Plan for the years ended June 30, 2017 and 2016 were $0.2 million and $0.2 million, respectively.

XML 29 R16.htm IDEA: XBRL DOCUMENT

Note 10 - Subsequent Events	12 Months Ended
Note 10 - Subsequent Events	Jun. 30, 2017
Notes to Financial Statements
Subsequent Events [Text Block]	NOTE 10. SUBSEQUENT EVENTS The Company has performed an evaluation of events occurring subsequent to June 30, 201 7, through the filing date of this Annual Report on Form 10 -K. Based on its evaluation, there are no events that are required to be disclosed herein.

XML 30 R17.htm IDEA: XBRL DOCUMENT

Significant Accounting Policies (Policies)

12 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

MAM Software Group, Inc. ("MAM" or

Consolidation, Policy [Policy Text Block]

Principles of Consolidation

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentrations of Credit Risk

The Company has

significant off-balance-sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

In the US, the Company maintains cash balances at financial institutions that are insured by the Federal Deposit Insurance Corporation up to

$250,000.

At times deposits held with financial institutions in the US

may

exceed the

$250,000

limit.

In the UK, the Company maintains cash balances at financial institutions that are insured by the Financial Services Compensation Scheme up to

85,000GBP.

At times deposits held with financial institutions in the UK

may

exceed the

85,000GBP

limit.

The Company maintains its cash accounts at financial institutions which it believes to be credit worthy. The Company considers all highly liquid debt instruments purchased with original maturities of

three

months or less to be cash equivalents to the extent the funds are

not

being held for investment purposes.

Major Customers, Policy [Policy Text Block]

Customers

The Company performs periodic evaluations of its customers and maintains allowances for potential credit losses as deemed necessary. The Company generally does

not

’s evaluation of historical experience and current industry trends. Although the Company expects to collect amounts due, actual collections

may

differ from the estimated amounts.

customers

accounted for more than

10%

of the Company’s revenues for each of the years ended

June 30, 2017

and

2016.

customers accounted for more than

10%

of the Company’s accounts receivable at

June 30, 2017

and

2016.

Segment Reporting, Policy [Policy Text Block]

Segment Reporting

The Company operates in

one

reportable segment.

Though the Company has

two

operational segments (MAM UK and MAM NA), the Company evaluated these segments in accordance with ASC

280

50,

Segment Reporting,

and determined that the segments have the same economic characteristics, are similar in the following areas and can therefore be aggregated into

one

reportable segment:

1.	The products and services are software and professional services
2.	The products are produced through professional services
3.	The customers for these products are primarily for the automotive aftermarket
4.	The method to distribute these products are via software that the customer can host locally or the Company will host
5.	They both operate in a non-regulatory environment

Geographic Concentrations [Policy Text Block]

Geographic Concentrations

The Company conducts business in the US

63%

of its revenues from the UK,

35%

from the US,

from Ireland, and

from Canada during the year ended

June 30, 2017,

compared to

70%

of its revenues from the UK,

28%

from the US,

from Ireland, and

from Canada during the year ended

June 30, 2016.

June 30,

201

the Company maintained

76%

of its net property and equipment in the UK and the remaining

24%

in the US. At

June 30, 2016,

the Company maintained

79%

of its net property and equipment in the UK and the remaining

21%

in the US.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the

not

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value of Financial Instruments

The Company

one

of the following

three

categories:

•

Level

– Fair value based on quoted prices in active markets for identical assets or liabilities.

•

Level

– Fair value based on significant directly observable data (other than Level

•

Level

Determining which category an asset or liability falls within the hierarchy

may

The carrying value of long-term debt approximates fair value based on borrowing rates currently available to the Company.

Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block]

Allowance for Doubtful Accounts

may

be required. The differences could be material and could significantly impact cash flows from operating activities.

Inventory, Policy [Policy Text Block]

Inventories

Inventories are stated at the lower of cost or current estimated market value. Cost is determined using the

first

-in,

first

’s estimated forecast of product demand. Once established, write-downs of inventories are considered permanent adjustments to the cost basis of the obsolete or excess inventories.

Property, Plant and Equipment, Policy [Policy Text Block]

Property and Equipment

Property and equipment are stated at cost, and are depreciated using the straight-line method over the estimated useful lives of the related assets, ranging from

three

five

Research, Development, and Computer Software, Policy [Policy Text Block]

oftware Development Costs

three

ten

Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block]

Amortizable Intangible Assets

Amortizable intangible assets consist of completed software technology, customer

years, automotive data services are amortized using the straight-line method over their estimated useful lives of

years and acquired intellectual property is amortized over the estimated useful life of

years.

Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]

Goodwill

Goodwill is

not

amortized, but rather is tested at least annually for impairment.

Goodwill is subject to impairment reviews by applying a fair-value-based test at the reporting unit level, which generally represents operations

one

level below the segments reported by the Company. As of

June 30,

201

the Company does

not

believe there is an impairment of its goodwill. There can be

assurance, however, that market conditions will

not

change or demand for the Company’s products and services will continue, which could result in impairment of goodwill in the future.

Goodwill activity for the years ended

June 30,

201

and

2016

was as follows (in thousands):



Balance, July 1, 2015	$	9,202
Acquisition of Origin (see Note 2)		202
Effect of exchange rate changes		(1,041	)
Balance, June 30, 2016	$	8,363
Effect of exchange rate changes		(172	)
Balance, June 30, 2017	$	8,191

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

Long-Lived Assets

The Company

June 30, 2017,

management believes there is

impairment of its long-lived assets. There can be

assurance, however, that market conditions will

not

change or demand for the Company’s products and services will continue, which could result in impairment of long-lived assets in the future.

Debt, Policy [Policy Text Block]

Debt Issuance Costs

Debt issuance costs represent costs incurred in connection with the issuance of long-term debt.

Issuance of Equity Instruments to Non-employees [Policy Text Block]

Issuance of Equity Instruments to Non-Employees

All issuances of the Company

not

presented or classified as an offset to equity on the grantor’s balance sheet once the equity instrument is granted for accounting purposes.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock-Based Compensation

The Company accounts for stock-based compensation under the provisions of ASC

No.

718,

Compensation - Stock Compensation

(“ASC

718”

). ASC

718

2016

during the year ended

June 30, 2017,

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

not

met, revenue recognition is deferred until such time as all of the criteria are met.

In those instances, in which arrangements include significant customization, contractual milestones, acceptance criteria or other contingencies, the Company accounts for the arrangements

using contract accounting, as follows:

•	when customer acceptance can be estimated, but reliable estimated costs to complete cannot be determined, expenditures are capitalized as work-in process and deferred until completion of the contract at which time the costs and revenues are recognized.
•	when customer acceptance cannot be estimated based on historical evidence, costs are expensed as incurred and revenue is recognized at the completion of the contract when customer acceptance is obtained.

The Company recognizes revenue on a net basis, which excludes sales tax collected from customers and remitted to governmental authorities.

Cost of Sales, Policy [Policy Text Block]

Cost of Revenues

third

-party fees

, and allocated overhead.

third

parties for the use of their technology, services or data, or as our sales volume grows, the fees paid to use such technology or services

may

increase. The timing of these additional expenses will affect our cost of revenues, both in terms of absolute dollars and as a percentage of revenues, in the affected periods.

Advertising Costs, Policy [Policy Text Block]

Advertising Expense

The Company expenses advertising costs as incurred. For the years ended

June 30,

201

and

2016,

advertising expense totaled

$0.4

million and

$0.4

million, respectively.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Currency

Management has determined that the functional currency of its subsidiaries is the local currency. Assets and liabilities of the

0.3

) million and $(

1.7

) million for the years ended

June 30, 2017

and

2016,

respectively.

Foreign currency gains and losses from transactions denominated in other than respective local currencies are included in income. The Company had

foreign currency transaction gain (loss) for all periods presented.

Comprehensive Income, Policy [Policy Text Block]

Comprehensive Income

Comprehensive income includes all changes in equity (net assets) during a period from non-owner sources. For the years ended

June 30,

201

and

2016,

the components of comprehensive income consist of foreign currency translation gains (losses).

Income Tax, Policy [Policy Text Block]

Income Taxes

The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. During the year ended

June 30, 2017,

the Company recognized penalties of

$0.1

million on the Company’s consolidated balance sheet and in the consolidated statement of comprehensive income. During the year ended

June 30, 2016,

the Company did

not

recognize any interest and/or penalties.

Earnings Per Share, Policy [Policy Text Block]

Basic and Diluted Earnings Per Share

not

assume conversion, exercise or contingent exercise of securities that would have an anti-dilutive effect on earnings. For the year

s ended

June 30, 2017

and

2016

there were common share equivalents of

54,008

and

175,863,

respectively, included in the computation of the DEPS. For the years ended

June 30, 2017

and

2016,

503,951

and

691,505

shares of common stock, respectively, vest based on the market price of the Company’s common stock and were excluded from the computation of DEPS because the shares have

not

vested, but

stock options were excluded from the computation of DEPS.

The following is a reconciliation of the numerators and denominators of the basic and diluted earnings per share computation

s for the years ended

June 30 (

in thousands, except for per share amounts):

	2017		2016
Numerator:
Net income	$	4,578	$	3,552

Denominator:
Basic weighted-average shares outstanding		11,732		12,314
Effect of dilutive securities		54		176
Diluted weighted-average diluted shares		11,786		12,490
Basic earnings per common share	$	0.39	$	0.29
Diluted earnings per common share	$	0.39	$	0.28

Reclassification, Policy [Policy Text Block]

Reclassification

Certain expenses were reclassified from

depreciation and amortization to cost of revenues in the accompanying consolidated statement of comprehensive income for the year ended

June 30, 2016,

in order to conform to the current period presentation.

The Company adopted Accounting Standards Update ("ASU")

2015

03,

Imputation of Interest - Simplifying the Presentation of Debt Issuance Costs,

on a retrospective basis on

July 1, 2016

and prior period amounts have been reclassified to conform to the current period presentation. As of

June 30, 2016,

net debt issuance costs of

$91,000

were reclassified in the consolidated balance sheet from other long-term assets to an offset against the current and non-current portions of long-term debt.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

Recently Adopted Accounting Standards

March 2016,

the FASB issued ASU

2016

09,

Improvements to Employee Share-Based Payment Accounting.

As required by ASU

2016

09,

fourth

quarter of our fiscal year that began

July 1, 2016.

As of

June 30, 2016,

we had excess tax benefits for which benefits could

not

be previously recognized of approximately

$0.7

million, due to net operating loss carryforwards resulting from the windfall tax benefits. Upon adoption, we recognized the previously unrecognized excess tax benefits of

$0.7

million with an offsetting increase in our valuation allowance using a modified retrospective method through a cumulative effect adjustment to the accumulated deficit, with

net impact on our financial statements at the effective date of

July 1, 2016.

In addition, we have elected to account for forfeitures as they occur, rather than estimate expected forfeitures over the course of a vesting period. There was

additional impact to the Company’s consolidated financial statements as a result of adopting ASU

2016

09.

November 2015,

the FASB issued

ASU

2015

17,

Balance Sheet C

lassification of Deferred Taxes

, an update to ASC

740,

not

affected by the amendments in this update. For public business entities, the amendments in this Update are effective for financial statements issued for annual periods beginning after

December 15, 2016,

and interim periods within those annual periods. The Update permits earlier application by all entities as of the beginning of any interim or annual reporting period. This Update

may

be applied to all deferred tax liabilities and assets prospectively. The Company chose to adopt the Update prospectively beginning in the year ended

June 30, 2017.

Accounting Standards

Not

Yet Adopted

May 2017,

the FASB issued ASU

2017

09,

Compensation - Stock Compensation (Topic

718

): Scope of Modification Accounting

, which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in ASC Topic

718.

2017

will be effective for the Company for the fiscal year ended

June 30, 2019

and interim reporting periods within that year. Early adoption is permitted. The Company expects the adoption of this guidance will

not

have a material effect on the Company’

s consolidated financial statements.

January 2017,

the FASB issued

ASU

2017

04,

Intangibles-Goodwill and Other (Topic

350

): Simplifying the Test for Goodwill Impairment

. This update simplifies the subsequent measurement of goodwill by eliminating step

two

not

to exceed the carrying amount of goodwill allocated to the reporting unit. ASU

2017

will be effective for the Company for the fiscal year ended

June 30, 2021.

Early adoption is permitted. The Company does

not

expect the adoption of ASU

2017

to have a significant impact on its consolidated financial statements.

August 2016,

the FASB issued ASU

2016

15,

Statement of Cash Flows (Topic

230

), Classification of Certain Cash Receipts and Cash Payments

. The update provides guidance for how certain cash receipts and cash payments are to be presented on the statement of cash flows. ASU

2016

will be effective for the Company beginning the

first

quarter of fiscal

2018.

Early adoption is permitted. ASU

2016

is to be adopted using the retrospective transition method, unless it is impracticable, in which case it can be applied prospectively as of the earliest practical date. The Company does

not

expect the adoption of ASU

2016

to have a significant impact on the disclosure or cash flow presentation in its consolidated financial statements.

February 2016,

the FASB issued ASU

2016

02,

Leases

. The update requires lessees to present right-of-use assets and lease liabilities on the balance sheet for all leases with terms longer than

June 30, 2021.

The Company is currently assessing the impact the adoption of ASU

2016

will have on its consolidated financial statements.

May 2014,

the FASB issued ASU

2014

, Revenue from Contracts with Customers

(Topic

606

), which amends the existing accounting standards for revenue recognition. ASU

2014

is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. In

July

2015,

the FASB provided a

one

-year delay in the effective date of ASU

2014

09,

to be effective for annual reporting periods beginning after

December

15,

2017,

including interim periods within that reporting period, and a permission to early adopt for annual and interim periods beginning after

December

15,

2016.

five

-step model of the new standard on its contracts compared to the results of current accounting practice. The Company plans to adopt ASU

2014

July 1, 2018.

The Company has

not

yet determined whether it will adopt the provisions of ASU

2014

09,

but has

not

yet determined what effect, if any, the new guidance will have on its consolidated financial position, results of operations or cash flows.

August 2014,

the FASB issued ASU

2014

15,

Presentation of Financial Statements-Going Concern

. Currently, there is

) provide a definition of the term substantial doubt, (

) require an evaluation every reporting period including interim periods, (

) provide principles for considering the mitigating effect of management’s plans, (

) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (

) require an express statement and other disclosures when substantial doubt is

not

alleviated, and (

) require an assessment for a period of

one

year after the date that the financial statements are issued (or available to be issued). The amendments in this ASU are effective for the reporting periods beginning after

December 15, 2016

and early application is permitted. The Company is currently assessing the impact the adoption of ASU

2014

will have on its consolidated financial statements.

XML 31 R18.htm IDEA: XBRL DOCUMENT

Note 1 - Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jun. 30, 2017

Schedule of Goodwill [Table Text Block]



Balance, July 1, 2015	$	9,202
Acquisition of Origin (see Note 2)		202
Effect of exchange rate changes		(1,041	)
Balance, June 30, 2016	$	8,363
Effect of exchange rate changes		(172	)
Balance, June 30, 2017	$	8,191

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	2017		2016
Numerator:
Net income	$	4,578	$	3,552

Denominator:
Basic weighted-average shares outstanding		11,732		12,314
Effect of dilutive securities		54		176
Diluted weighted-average diluted shares		11,786		12,490
Basic earnings per common share	$	0.39	$	0.29
Diluted earnings per common share	$	0.39	$	0.28

XML 32 R19.htm IDEA: XBRL DOCUMENT

Note 3 - Property and Equipment (Tables)

12 Months Ended

Jun. 30, 2017

Property, Plant and Equipment [Table Text Block]

	As of
	June 30, 2017			June 30, 2016
Leasehold improvements	$	396		$	396
Computer and office equipment		928			869
Equipment under capital leases		10			10
Furniture and equipment		476			477
Total property, plant and equipment		1,810			1,752
Less: accumulated depreciation and amortization		(1,299	)		(1,171	)
Total property, plant and equipment, net	$	511		$	581

XML 33 R20.htm IDEA: XBRL DOCUMENT

Note 4 - Intangible Assets (Tables)

12 Months Ended

Jun. 30, 2017

Schedule of Finite-Lived Intangible Assets [Table Text Block]

	Average Estimated Useful Life (in years)			Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Completed software technology	9	to	10	$	1,061	$	(1,061	)	$	-
Customer contracts / relationships		10			527		(527	)		-
Automotive data services		20			255		(255	)		-
Acquired intellectual property		10			798		(159	)		639
Software development costs	3	to	10		10,331		(2,697	)		7,634
Total				$	12,972	$	(4,699	)	$	8,273

	Average Estimated Useful Life (in years)			Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Completed software technology	9	to	10	$	1,093	$	(1,093	)	$	-
Customer contracts / relationships		10			543		(543	)		-
Automotive data services		20			262		(262	)		-
Acquired intellectual property		10			822		(83	)		739
Software development costs	3	to	10		7,887		(2,653	)		5,234
Total				$	10,607	$	(4,634	)	$	5,973

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

Years Ending June 30,
2018	$	706
2019		953
2020		898
2021		873
2022		873

XML 34 R21.htm IDEA: XBRL DOCUMENT

Note 5 - Long-term Debt (Tables)

12 Months Ended

Jun. 30, 2017

Schedule of Debt [Table Text Block]

	As of
( dollars in thousands)	June 30, 201 7			June 30, 2016
Debt obligations:
Revolving loan facility	$	-		$	1,150
Term loan		8,217			8,550
Equipment financing		-			78
Less: unamortized debt issuance cost		(97	)		(91	)
Total		8,120			9,687
Less current portion		(1,734	)		(1,879	)
Long-term debt	$	6,386		$	7,808

Schedule of Maturities of Long-term Debt [Table Text Block]

For the years ending June 30,
2018	$	1,775
201 9		2,017
2020		2,100
2021		2,100
2022		225
Total debt payments	$	8,217

XML 35 R22.htm IDEA: XBRL DOCUMENT

Note 6 - Income Taxes (Tables)

12 Months Ended

Jun. 30, 2017

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

	As of
	June 30, 2017		June 30, 2016
United States of America	$	935	$	246
United Kingdom		2,723		3,495
	$	3,658	$	3,741

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	US Federal			US State			UK Corporate			Total
2017
Current	$	473		$	111		$	19		$	603
Deferred		(1,550	)		(129	)		156			(1,523	)
Total	$	(1,077	)	$	(18	)	$	175		$	(920	)

2016
Current	$	-		$	31		$	(162	)	$	(131	)
Deferred		-			-			320			320
Total	$	-		$	31		$	158		$	189

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	June 30,			June 30,
	2017			2016
Deferred tax assets:
State taxes	$	36		$	1
Net operating loss carry-forwards		1,549			2,759
Write-down of investments		1,716			1,745
Equity-based compensation		63			67
Reserves and accruals		329			274
Deferred rent		4			3
Tax credits		9			-
Domestic intangibles and other long-lived assets		-			101
Total deferred tax assets		3,706			4,950

Deferred tax liabilities:
Foreign intangible and other long-lived assets		(718	)		(546	)
Domestic i ntangible and other long-lived assets		(110	)
Unremitted foreign earnings		(165	)		-
Total deferred tax liabilities		(993	)		(546	)

Valuation allowance		(1,716	)		(4,939	)
Net deferred tax assets ( liabilities )	$	997		$	(535	)

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	June 30,
	2017			2016
Taxes at federal statutory rates	$	1,244		$	1,272
State taxes, net of federal benefit		93			8
Rate changes		289			(19	)
Unrecognized tax benefits		88			-
Permanent items and other		116			100
Research and development		(333	)		(577	)
NOL expiration		3			-
Differential in UK corporate tax rate		(388	)		(515	)
Unremitted foreign earnings		164			-
Stock compensation		(237	)		-
Foreign dividends		9,452			-
Foreign tax credits		(7,522	)		-
Change in valuation allowance		(3,889	)		(80	)
(Benefit) provision for income taxes	$	(920	)	$	189

XML 36 R23.htm IDEA: XBRL DOCUMENT

Note 7 - Commitments and Contingencies (Tables)

12 Months Ended

Jun. 30, 2017

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

For the years ended June 30,
2018	$	725
2019		669
2020		592
2021		414
2022		400
Thereafter		1,323
Total operating lease obligations	$	4,123

XML 37 R24.htm IDEA: XBRL DOCUMENT

Note 8 - Stockholders' Equity (Tables)

12 Months Ended

Jun. 30, 2017

Share-based Compensation, Stock Options, Activity [Table Text Block]

	Options Outstanding
	Number of Shares (in thousands)			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (in years)		Aggregate Intrinsic Value (in thousands)
Op tions outstanding - July 1, 2016		121		$	1.23
Options granted		-			-
Options exercised		(53	)		1.13
Options cancelled		-			-
Options outstanding - Jun e 30, 2017		68		$	1.30		4.0	$	338
Opt ions exercisable - June 30, 2017		68		$	1.30		4.0	$	338
Options exerci sable and vested - June 30, 2017		68		$	1.30		4.0	$	338

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]

				Weighted Average
	Number of Shares			Initial Value Price
	(in thousands)			Per Share
Restricted stock outstanding - July 1, 2016		776		$	0.87
Issuance of restricted stock		-			-
Vesting		(85	)		0.39
Forfeitures		(187	)		0.35
Restricted stock outstanding - June 30, 201 7		504		$	0.94

Schedule of Vesting Level of Restricted Stock [Table Text Block]

			Weighted Average
	Number of		Initial Value Price
	Shares		Per Share
30 day VWAP per share vesting level (1):
$8.00 per share		294	$	0.48
$9.00 per share		82	$	1.25
$10.00 per share		48	$	1.79
$11.00 per share		48	$	1.79
$12.00 per share		32	$	1.79

XML 38 R25.htm IDEA: XBRL DOCUMENT

Note 1 - Summary of Significant Accounting Policies (Details Textual)	12 Months Ended
	Jun. 30, 2017 USD ($) shares	Jun. 30, 2016 USD ($) shares	Jun. 30, 2017 GBP (£)
Number of Operating Segments	2
Goodwill, Impairment Loss	$ 0
Impairment of Long-Lived Assets Held-for-use	0
Advertising Expense	400,000	$ 400,000
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent	(298,000)	(1,744,000)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax	0	0
Income Tax Examination, Penalties Expense	$ 100,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense		$ 0
Weighted Average Number Diluted Shares Outstanding Adjustment \| shares	54,008	175,863
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount \| shares	503,951	691,505
Unrecognized Tax Benefits		$ 700,000
Income Tax Expense (Benefit)	$ (920,000)	189,000
Number of Reportable Segments	1
Income Tax Examination, Penalties Accrued	$ 100,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued		$ 0
Reclassification of Net Debt Issuance Costs from Other Long-term Assets to an Offset Against Current and Non-current Portions of Long-term Debt [Member] \| As of June 30, 2016 [Member]
Prior Period Reclassification Adjustment	91,000
Accounting Standards Update 2016-09 [Member]
Income Tax Expense (Benefit)	$ (700,000)
Automotive Data Services [Member]
Finite-Lived Intangible Asset, Useful Life	20 years	20 years
Acquired Intellectual Property [Member]
Finite-Lived Intangible Asset, Useful Life	10 years	10 years
Minimum [Member]
Property, Plant and Equipment, Useful Life	3 years
Minimum [Member] \| Computer Software, Intangible Asset [Member]
Finite-Lived Intangible Asset, Useful Life	3 years	3 years
Minimum [Member] \| Completed Software Technology and Customer Contracts/Relationships [Member]
Finite-Lived Intangible Asset, Useful Life	9 years
Maximum [Member]
Property, Plant and Equipment, Useful Life	5 years
Maximum [Member] \| Computer Software, Intangible Asset [Member]
Finite-Lived Intangible Asset, Useful Life	10 years	10 years
Maximum [Member] \| Completed Software Technology and Customer Contracts/Relationships [Member]
Finite-Lived Intangible Asset, Useful Life	10 years
Customer Concentration Risk [Member] \| Sales Revenue, Net [Member]
Number of Major Customers	0	0
Customer Concentration Risk [Member] \| Accounts Receivable [Member]
Number of Major Customers	0	0
UNITED STATES
Percentage of Property, Plant and Equipment, Net	24.00%	21.00%	24.00%
Cash, FDIC Insured Amount	$ 250,000
UNITED STATES \| Geographic Concentration Risk [Member] \| Sales Revenue, Net [Member]
Concentration Risk, Percentage	35.00%	28.00%
UNITED KINGDOM
Percentage of Property, Plant and Equipment, Net	76.00%	79.00%	76.00%
Cash, FSCS Insured Amount \| £			£ 85,000
UNITED KINGDOM \| Geographic Concentration Risk [Member] \| Sales Revenue, Net [Member]
Concentration Risk, Percentage	63.00%	70.00%
IRELAND \| Geographic Concentration Risk [Member] \| Sales Revenue, Net [Member]
Concentration Risk, Percentage	1.00%	1.00%
CANADA \| Geographic Concentration Risk [Member] \| Sales Revenue, Net [Member]
Concentration Risk, Percentage	1.00%	1.00%

XML 39 R26.htm IDEA: XBRL DOCUMENT

Note 1 - Summary of Significant Accounting Policies - Goodwill Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Balance	$ 8,363	$ 9,202
Acquisition of Origin (see Note 2)		202
Effect of exchange rate changes	(172)	(1,041)
Balance	$ 8,191	$ 8,363

XML 40 R27.htm IDEA: XBRL DOCUMENT

Note 1 - Summary of Significant Accounting Policies - Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Numerator:
Net income	$ 4,578	$ 3,552
Denominator:
Basic weighted-average shares outstanding (in shares)	11,732,000	12,314,000
Effect of dilutive securities (in shares)	54,008	175,863
Diluted weighted-average diluted shares (in shares)	11,786,000	12,490,000
Basic earnings per common share (in dollars per share)	$ 0.39	$ 0.29
Diluted earnings per common share (in dollars per share)	$ 0.39	$ 0.28

XML 41 R28.htm IDEA: XBRL DOCUMENT

Note 2 - Business Acquisition (Details Textual) - USD ($)		12 Months Ended
	Jul. 01, 2015	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2015
Goodwill		$ 8,363,000	$ 8,191,000	$ 9,202,000
Origin Software Solutions Ltd [Member]
Equity Method Investment, Ownership Percentage	100.00%
Payments to Acquire Businesses, Gross	$ 503,000
Business Combination, Contingent Consideration, Liability			416,000
Business Acquisition, Contingent Consideration, Equity Interest Issuable Value			283,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets	177,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	$ 1,000,000
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	10 years
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent	$ 202,000
Goodwill	$ 202,000
Origin Software Solutions Ltd [Member] \| General and Administrative Expense [Member]
Business Combination, Acquisition Related Costs		$ 53,000
Origin Software Solutions Ltd [Member] \| Other Noncurrent Liabilities [Member]
Business Combination, Contingent Consideration, Liability, Noncurrent			$ 470,000

XML 42 R29.htm IDEA: XBRL DOCUMENT

Note 3 - Property and Equipment (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Depreciation	$ 0.1	$ 0.3

XML 43 R30.htm IDEA: XBRL DOCUMENT

Note 3 - Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Jun. 30, 2016
Property and equipment, gross	$ 1,810	$ 1,752
Less: accumulated depreciation and amortization	(1,299)	(1,171)
Total property, plant and equipment, net	511	581
Leasehold Improvements [Member]
Property and equipment, gross	396	396
Computer and Office Equipment [Member]
Property and equipment, gross	928	869
Assets Held under Capital Leases [Member]
Property and equipment, gross	10	10
Furniture and Fixtures [Member]
Property and equipment, gross	$ 476	$ 477

XML 44 R31.htm IDEA: XBRL DOCUMENT

Note 4 - Intangible Assets (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Amortization of Intangible Assets	$ 0.4	$ 0.4

XML 45 R32.htm IDEA: XBRL DOCUMENT

Note 4 - Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Gross Carrying Amount	$ 12,972	$ 10,607
Accumulated Amortization	(4,699)	(4,634)
Net Carrying Amount	8,273	5,973
Completed Software Technology [Member]
Gross Carrying Amount	1,061	1,093
Accumulated Amortization	(1,061)	(1,093)
Net Carrying Amount
Completed Software Technology [Member] \| Minimum [Member]
Average Estimated Useful Life (Year)	9 years	9 years
Completed Software Technology [Member] \| Maximum [Member]
Average Estimated Useful Life (Year)	10 years	10 years
Customer Relationships [Member]
Gross Carrying Amount	$ 527	$ 543
Accumulated Amortization	(527)	(543)
Net Carrying Amount
Average Estimated Useful Life (Year)	10 years	10 years
Automotive Data Services [Member]
Gross Carrying Amount	$ 255	$ 262
Accumulated Amortization	(255)	(262)
Net Carrying Amount
Average Estimated Useful Life (Year)	20 years	20 years
Acquired Intellectual Property [Member]
Gross Carrying Amount	$ 798	$ 822
Accumulated Amortization	(159)	(83)
Net Carrying Amount	$ 639	$ 739
Average Estimated Useful Life (Year)	10 years	10 years
Computer Software, Intangible Asset [Member]
Gross Carrying Amount	$ 10,331	$ 7,887
Accumulated Amortization	(2,697)	(2,653)
Net Carrying Amount	$ 7,634	$ 5,234
Computer Software, Intangible Asset [Member] \| Minimum [Member]
Average Estimated Useful Life (Year)	3 years	3 years
Computer Software, Intangible Asset [Member] \| Maximum [Member]
Average Estimated Useful Life (Year)	10 years	10 years

XML 46 R33.htm IDEA: XBRL DOCUMENT

Note 4 - Intangible Assets - Estimated Future Amortization of Software Development Costs and Intangibles (Details) $ in Thousands	Jun. 30, 2017 USD ($)
2018	$ 706
2019	953
2020	898
2021	873
2022	$ 873

XML 47 R34.htm IDEA: XBRL DOCUMENT

Note 5 - Long-term Debt (Details Textual) - USD ($)			9 Months Ended	12 Months Ended		32 Months Ended
Note 5 - Long-term Debt (Details Textual) - USD ($)	Mar. 02, 2017	Dec. 01, 2015	Dec. 01, 2017	Dec. 01, 2018	Jun. 30, 2017	Aug. 01, 2021	Jun. 30, 2016
Long-term Debt					$ 8,120,000		$ 9,687,000
J.P. Morgan Chase Bank, N.A. [Member] \| JMP Credit Facility [Member]
Long-term Debt		$ 9,500,000
Debt Agreement, Maximum Borrowing Capacity		12,000,000
Percentage of Pledged Stock					65.00%
J.P. Morgan Chase Bank, N.A. [Member] \| JMP Credit Facility [Member] \| Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity		2,500,000
Proceeds from Lines of Credit		$ 10,500,000
Univest Bank and Trust Co. [Member] \| New Credit Facility [Member]
Long-term Debt	$ 8,750,000
Debt Agreement, Maximum Borrowing Capacity	$ 11,500,000
Univest Bank and Trust Co. [Member] \| New Credit Facility [Member] \| Scenario, Forecast [Member]
Debt Instrument, Periodic Payment			$ 133,333	$ 158,333		$ 175,000
Debt Instrument, Frequency of Periodic Payment			monthly	monthly		monthly
Univest Bank and Trust Co. [Member] \| New Credit Facility [Member] \| Either LIBO Rate or Prime Rate [Member] \| Minimum [Member]
Debt Instrument, Basis Spread on Variable Rate	2.75%
Univest Bank and Trust Co. [Member] \| New Credit Facility [Member] \| Either LIBO Rate or Prime Rate [Member] \| Maximum [Member]
Debt Instrument, Basis Spread on Variable Rate	3.25%
Univest Bank and Trust Co. [Member] \| New Credit Facility [Member] \| Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 2,750,000
Long-term Line of Credit					$ 0

XML 48 R35.htm IDEA: XBRL DOCUMENT

Note 5 - Long-term Debt - Summary of Long-term Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Jun. 30, 2016
Long-term debt, gross	$ 8,217
Less: unamortized debt issuance cost	(97)	$ (91)
Long-term debt	8,120	9,687
Less current portion	(1,734)	(1,879)
Long-term debt, noncurrent	6,386	7,808
Line of Credit [Member]
Long-term debt, gross		1,150
Term Loan [Member]
Long-term debt, gross	8,217	8,550
Equipment Financing [Member]
Long-term debt, gross		$ 78

XML 49 R36.htm IDEA: XBRL DOCUMENT

Note 5 - Long-term Debt - Future Minimum Payments for Long-term Debt (Details) $ in Thousands	Jun. 30, 2017 USD ($)
2018	$ 1,775
2019	2,017
2020	2,100
2021	2,100
2022	225
Total debt payments	$ 8,217

XML 50 R37.htm IDEA: XBRL DOCUMENT

Note 6 - Income Taxes (Details Textual) - USD ($)	12 Months Ended
Note 6 - Income Taxes (Details Textual) - USD ($)	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2011
Annual Utilization of Previously Incurred Net Operating Loss			$ 400,000
Deferred Tax Assets, Valuation Allowance	$ 1,716,000	$ 4,939,000
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	(3,900,000)
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	0
Income Tax Examination, Penalties Expense	100,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense		0
Unrecognized Tax Benefits		700,000
Income Tax Expense (Benefit)	(920,000)	189,000
Effective Income Tax Rate Reconciliation, Tax Credit, Research, Amount	333,000	577,000
Income Tax Examination, Penalties Accrued	100,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued		0
Her Majesty's Revenue and Customs (HMRC) [Member]
Effective Income Tax Rate Reconciliation, Tax Credit, Research, Amount		$ 200,000
Deferred Tax Assets, Capital Loss Carryforwards [Member]
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	(3,200,000)
Domestic Tax Authority [Member]
Operating Loss Carryforwards	4,400,000
Deferred Tax Assets, Net of Valuation Allowance	2,700,000
State and Local Jurisdiction [Member]
Operating Loss Carryforwards	2,600,000
Accounting Standards Update 2016-09 [Member]
Income Tax Expense (Benefit)	$ (700,000)

XML 51 R38.htm IDEA: XBRL DOCUMENT

Note 6 - Income Taxes - Income (Loss) Before Income Taxes by Jursidiction (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Income (loss) before income taxes	$ 3,658	$ 3,741
Domestic Tax Authority [Member] \| Internal Revenue Service (IRS) [Member]
Income (loss) before income taxes	935	246
Foreign Tax Authority [Member] \| Her Majesty's Revenue and Customs (HMRC) [Member]
Income (loss) before income taxes	$ 2,723	$ 3,495

XML 52 R39.htm IDEA: XBRL DOCUMENT

Note 6 - Income Taxes - Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Total U.K. corporate tax expense (benefit)	$ 175	$ 158
Total tax expense (benefit)	(920)	189
Current U.S. federal tax expense (benefit)	473
Current U.S. state tax expense (benefit)	111	31
Current U.K. corporate tax expense (benefit)	19	(162)
Current tax expense (benefit)	603	(131)
Deferred U.S. federal tax expense (benefit)	(1,550)
Deferred U.S. state tax expense (benefit)	(129)
Deferred U.K. corporate tax expense (benefit)	156	320
Deferred tax expense (benefit)	(1,523)	359
Total U.S. federal tax expense (benefit)	(1,077)
Total U.S. state tax expense (benefit)	$ (18)	$ 31

XML 53 R40.htm IDEA: XBRL DOCUMENT

Note 6 - Income Taxes - Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Jun. 30, 2016
Deferred tax assets:
State taxes	$ 36	$ 1
Net operating loss carry-forwards	1,549	2,759
Write-down of investments	1,716	1,745
Equity-based compensation	63	67
Reserves and accruals	329	274
Deferred rent	4	3
Tax credits	9
Domestic intangibles and other long-lived assets		101
Total deferred tax assets	3,706	4,950
Deferred tax liabilities:
Foreign intangible and other long-lived assets	(718)	(546)
Domestic intangible and other long-lived assets	(110)
Unremitted foreign earnings	(165)
Total deferred tax liabilities	(993)	(546)
Valuation allowance	(1,716)	(4,939)
Net deferred tax assets (liabilities)	$ 997	$ (535)

XML 54 R41.htm IDEA: XBRL DOCUMENT

Note 6 - Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Taxes at federal statutory rates	$ 1,244	$ 1,272
State taxes, net of federal benefit	93	8
Rate changes	289	(19)
Unrecognized tax benefits	88
Permanent items and other	116	100
Research and development	(333)	(577)
NOL expiration	3
Differential in UK corporate tax rate	(388)	(515)
Unremitted foreign earnings	164
Stock compensation	(237)
Foreign dividends	9,452
Foreign tax credits	(7,522)
Change in valuation allowance	(3,889)	(80)
Total tax expense (benefit)	$ (920)	$ 189

XML 55 R42.htm IDEA: XBRL DOCUMENT

Note 7 - Commitments and Contingencies (Details Textual) - USD ($)	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Operating Leases, Rent Expense, Net	$ 500,000	$ 400,000
Minimum [Member]
Operating Leases, Monthly Rent Payments	900
Maximum [Member]
Operating Leases, Monthly Rent Payments	$ 19,800

XML 56 R43.htm IDEA: XBRL DOCUMENT

Note 7 - Commitments and Contingencies - Future Annual Minimum Payments under Non-cancelable Operating Leases (Details) $ in Thousands	Jun. 30, 2017 USD ($)
2018	$ 725
2019	669
2020	592
2021	414
2022	400
Thereafter	1,323
Total operating lease obligations	$ 4,123

XML 57 R44.htm IDEA: XBRL DOCUMENT

Note 8 - Stockholders' Equity (Details Textual) - USD ($)				12 Months Ended
	Jan. 06, 2017	Dec. 01, 2015	Jul. 01, 2015	Jun. 30, 2017	Jun. 30, 2016
Proceeds from Stock Options Exercised				$ 16,000
Adjustments to Additional Paid in Capital, Repurchase of Common Stock in Tender Offer, Costs		$ 100,000
Treasury Stock, Retired, Cost Method, Amount
Stock Repurchase Program, Number of Aggregate Shares Repurchased				1,982,235
Stock Repurchase Program, Number of Aggregate Shares Repurchased, Value				$ 4,700,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period				53,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value				$ 300,000
Shares Paid for Tax Withholding for Share Based Compensation				26,535	60,612
Adjustments Related to Tax Withholding for Share-based Compensation				$ 150,000	$ 341,000
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures				55,010	57,126
Common Stock Issued for Cash [Member]
Proceeds from Stock Options Exercised				$ 16,300
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period				33,000
Common Stock Issued on Cashless Basis [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period				20,000
Stock Issued During Period, Shares, New Issues				11,432
Restricted Stock [Member]
Allocated Share-based Compensation Expense				$ 400,000	$ 400,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized				$ 200,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition				2 years 36 days
Treasury Stock [Member]
Treasury Stock, Shares, Retired				785,000
Stock Repurchased During Period, Shares					29,695
Treasury Stock, Retired, Cost Method, Amount				$ 2,358,000	$ 200,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period
Shares Paid for Tax Withholding for Share Based Compensation
Adjustments Related to Tax Withholding for Share-based Compensation
Tender Offer [Member]
Purchases of Common Stock During Period		2,000,000
Purchases of Common Stock Price Per Share		$ 7.50
Purchases of Common Stock During Period, Value		$ 15,000,000
LITP 2007 [Member]
Stock Issued During Period, Value, New Issues			$ 255,000
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures			47,663
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			3 years
EIP 2007 [Member]
Stock Issued During Period, Value, New Issues	$ 241,000
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures	37,795
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	3 years
Employee Stock Purchase Plan [Member]
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures				13,835
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures				$ 100,000
Employee Stock Purchase Plan [Member] \| US Employees [Member]
Common Stock, Percent of Fair Market Value, Exercise Date				85.00%
Common Stock, Percent of Fair Market Value, Grant Date				85.00%
Employee Stock Purchase Plan [Member] \| UK Employees [member]
Common Stock, Percent of Fair Market Value, Exercise Date				100.00%
Common Stock, Percent of Fair Market Value, Grant Date				100.00%
Employee Stock Purchase Plan, Employer Matching Contribution, Percent of Share Price				15.00%

XML 58 R45.htm IDEA: XBRL DOCUMENT

Note 8 - Stockholders' Equity - Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 30, 2017 USD ($) $ / shares shares
Number of options outstanding (in shares) \| shares	121
Options outstanding, weighted-average exercise price (in dollars per share) \| $ / shares	$ 1.23
Number of options granted (in shares) \| shares	0
Options granted, weighted-average exercise price (in dollars per share) \| $ / shares	$ 0
Number of options exercised (in shares) \| shares	(53)
Options exercised, weighted-average exercise price (in dollars per share) \| $ / shares	$ 1.13
Number of options cancelled (in shares) \| shares	0
Options cancelled, weighted-average exercise price (in dollars per share) \| $ / shares	$ 0
Number of options outstanding (in shares) \| shares	68
Options outstanding, weighted-average exercise price (in dollars per share) \| $ / shares	$ 1.30
Options outstanding, weighted-average remaining contractual life (Year)	4 years
Options outstanding, aggregate intrinsic value \| $	$ 338
Number of options exercisable (in shares) \| shares	68
Options exercisable, weighted-average exercise price (in dollars per share) \| $ / shares	$ 1.30
Options exercisable, weighted-average remaining contractual life (Year)	4 years
Options exercisable, aggregate intrinsic value \| $	$ 338
Number of options exercisable and vested (in shares) \| shares	68
Options exercisable and vested, weighted-average exercise price (in dollars per share) \| $ / shares	$ 1.30
Options exercisable and vested, weighted-average remaining contractual life (Year)	4 years
Options exercisable and vested, aggregate intrinsic value \| $	$ 338

XML 59 R46.htm IDEA: XBRL DOCUMENT

Note 8 - Stockholders' Equity - Restricted Stock Activity (Details) - Restricted Stock [Member] shares in Thousands	12 Months Ended
	Jun. 30, 2017 $ / shares shares
Number of shares, restricted stock outstanding, beginning balance (in shares) \| shares	776
Weighted average initial value price per share, beginning balance (in dollars per share) \| $ / shares	$ 0.87
Number of shares, issuance of restricted stock (in shares) \| shares	0
Weighted average initial value price per share, issuance of restricted stock (in dollars per share) \| $ / shares	$ 0
Number of shares, vesting (in shares) \| shares	(85)
Weighted average initial value price per share, vesting (in dollars per share) \| $ / shares	$ 0.39
Number of shares, forfeitures (in shares) \| shares	(187)
Weighted average initial value price per share, forfeitures (in dollars per share) \| $ / shares	$ 0.35
Number of shares, restricted stock outstanding, ending balance (in shares) \| shares	504
Weighted average initial value price per share, ending balance (in dollars per share) \| $ / shares	$ 0.94

XML 60 R47.htm IDEA: XBRL DOCUMENT

Note 8 - Stockholders' Equity - Vesting Levels of Restricted Stock (Details) - Restricted Stock [Member] - $ / shares
shares in Thousands

Jun. 30, 2017

Jun. 30, 2016

Weighted average initial value price (in dollars per share)

504

776

$ 0.94

$ 0.87

Share-based Compensation Award, Tranche One [Member]

Weighted average initial value price (in dollars per share)

^[1]

294

^[1]

$ 0.48

Share-based Compensation Award, Tranche Two [Member]

Weighted average initial value price (in dollars per share)

^[1]

^[1]

$ 1.25

Share-based Compensation Award, Tranche Three [Member]

Weighted average initial value price (in dollars per share)

^[1]

^[1]

$ 1.79

Share-based Compensation Award, Tranche Four [Member]

Weighted average initial value price (in dollars per share)

^[1]

^[1]

$ 1.79

Share-based Compensation Award, Tranche Five [Member]