SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Sep. 30, 2018

inventory contracts. This constituted a material portion of the cumulative effect noted above as under the new guidance, revenue recognition is no longer limited to the amounts that may be billed to the customer at the point in time in which performance obligations are satisfied.

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The Company made a number of practical expedient elections related to the new accounting guidance, including: (i) right to invoice practical expedient that allows revenue for route-based pickup services to be recognized in the amount to which the Company has a right to invoice over time; (ii) sales and use taxes have been excluded from the transaction price; (iii) for incremental costs to obtain a contract that would be recognized over one year or less, the Company expenses those costs as incurred; and (iv) at the implementation date, new guidance was applied only to contracts that were not completed as of the date of initial application.

Schedule of Impact of New Accounting Guidance

The impact of adopting the new accounting guidance on the Company's condensed consolidated balance sheet as of September 30, 2018 was as follows (in thousands):



	September 30, 2018
	As Reported			Adjustments			Balance Without Adoption
Current contract asset	$	278		$	(278	)	$	—
Prepaid and other current assets	741			(13		)	728
Total current assets	17,112			(291		)	16,821
Long-term contract asset	60			(60		)	—
Total assets	33,896			(351		)	33,545
Current contract liability⁽¹⁾	1,801			2			1,803
Total current liabilities	6,254			2			6,256
Long-term contract liability⁽¹⁾	462			—			462
Total Liabilities	8,213			2			8,215
Accumulated Deficit	(1,649		)	(353		)	(2,002		)
Total stockholders' equity	25,683			(353		)	25,330
Total liabilities and stockholders' equity	33,896			(351		)	33,545

(1): Prior period contract liabilities were referred to as deferred revenue.

The impact of adopting the new accounting guidance on the Company's condensed consolidated statement of operations for the three months ended September 30, 2018 was as follows (in thousands):



	September 30, 2018
	As Reported		Adjustments			Balance Without Adoption
Revenues	$	10,293	$	35		$	10,328
Cost of revenues	6,941		37			6,978
Gross profits	3,352		(2		)	3,350
Selling, general and administrative	3,026		13			3,039
Operating income	125		(15		)	110
Net income	70		(15		)	55