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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Jun. 30, 2014	Sep. 15, 2014	Dec. 31, 2013
Document and Entity Information [Abstract]
Entity Registrant Name	USA TECHNOLOGIES INC
Entity Central Index Key	0000896429
Trading Symbol	usat
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Current Fiscal Year End Date	--06-30
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding		35,603,271
Entity Public Float			$ 61,214,929
Document Type	10-K
Document Period End Date	Jun. 30, 2014
Amendment Flag	false
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY

Consolidated Balance Sheets - USD ($)	Jun. 30, 2014	Jun. 30, 2013
Current assets:
Cash and cash equivalents	$ 9,072,320	$ 5,981,000
Accounts receivable, less allowance for uncollectible accounts of $63,000 and $18,000, respectively	2,683,579	2,620,684
Finance receivables	119,793	116,444
Inventory	1,486,777	1,823,615
Prepaid expenses and other current assets	363,367	184,336
Deferred income taxes	907,691
Total current assets	14,633,527	10,726,079
Finance receivables, less current portion	352,794	408,674
Other assets	190,703	84,117
Property and equipment, net	21,138,580	17,240,065
Deferred income taxes	26,353,330
Intangibles, net	432,100	454,053
Goodwill	7,663,208	7,663,208
Total assets	70,764,242	36,576,196
Current liabilities:
Accounts payable	7,753,911	7,301,247
Accrued expenses	1,915,799	1,468,184
Line of credit	5,000,000	3,000,000
Current obligations under long-term debt	172,911	247,152
Income taxes payable	21,021
Deferred gain from sale-leaseback transactions	380,895
Total current liabilities	15,244,537	12,016,583
Long-term liabilities:
Long-term debt, less current portion	249,865	122,754
Accrued expenses, less current portion	186,174	366,785
Deferred tax liabilities		40,245
Warrant liabilities	585,209	650,638
Deferred gain from sale-leaseback transactions, less current portion	761,790
Total long-term liabilities	1,783,038	1,180,422
Total liabilities	17,027,575	13,197,005
Commitments and contingencies
Shareholders' equity:
Preferred stock, no par value: Authorized shares- 1,800,000 Series A convertible preferred- Authorized shares- 900,000 Issued and outstanding shares- 442,968 (liquidation preference of $16,690,456 and $16,026,004, respectively)	3,138,056	3,138,056
Common stock, no par value: Authorized shares- 640,000,000 Issued and outstanding shares - 35,514,685 and 33,284,232, respectively	224,210,197	221,383,373
Accumulated deficit	(173,611,586)	(201,142,238)
Total shareholders' equity	53,736,667	23,379,191
Total liabilities and shareholders' equity	$ 70,764,242	$ 36,576,196

Consolidated Balance Sheets (Parentheticals) - USD ($)	Jun. 30, 2014	Jun. 30, 2013
Allowance for uncollectible accounts receivable (in dollars)	$ 63,000	$ 18,000
Preferred stock, no par value (in dollars per share)
Preferred stock, shares authorized	1,800,000	1,800,000
Common stock, no par value (in dollars per share)
Common stock, shares authorized	640,000,000	640,000,000
Common stock, shares issued	35,514,685	33,284,232
Common stock, shares outstanding	35,514,685	33,284,232
Series A Convertible Preferred Stock
Preferred stock, shares authorized	900,000	900,000
Preferred stock, shares issued	442,968	442,968
Preferred stock, shares outstanding	442,968	442,968
Preferred stock, liquidation preference value (in dollars)	$ 16,690,456	$ 16,026,004

Consolidated Statements of Operations - USD ($)	12 Months Ended
Consolidated Statements of Operations - USD ($)	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012
Revenues:
License and transaction fees	$ 35,638,121	$ 30,044,429	$ 23,370,754
Equipment sales	6,706,843	5,895,815	5,646,489
Total revenues	42,344,964	35,940,244	29,017,243
Cost of services	23,018,001	18,219,945	15,312,966
Cost of equipment	4,254,127	3,623,686	3,743,226
Gross profit	15,072,836	14,096,613	9,961,051
Operating expenses:
Selling, general and administrative	14,036,016	12,068,566	15,460,668
Depreciation and amortization	600,488	1,314,122	1,500,775
Total operating expenses	14,636,504	13,382,688	16,961,443
Operating income (loss)	436,332	713,925	(7,000,392)
Other income (expense):
Interest income	30,337	57,121	72,059
Interest expense	(256,844)	(157,205)	(83,993)
Change in fair value of warrant liabilities	65,429	267,928	1,813,687
Total other income (expense), net	(161,078)	167,844	1,801,753
Income (loss) before benefit (provision) for income taxes	275,254	881,769	(5,198,639)
Benefit (provision) for income taxes	27,255,398	(27,646)	(12,599)
Net income (loss)	27,530,652	854,123	(5,211,238)
Cumulative preferred dividends	(664,452)	(664,452)	(664,452)
Net income (loss) applicable to common shares	$ 26,866,200	$ 189,671	$ (5,875,690)
Net earnings (loss) per common share - basic (in dollars per share)	$ 0.78	$ 0.01	$ (0.18)
Weighted average number of common shares outstanding (in shares)	34,613,497	32,787,673	32,423,987
Net earnings (loss) per common share - diluted (in dollars per share)	$ 0.78	$ 0.01	$ (0.18)
Diluted weighted average number of common shares outstanding (in shares)	34,613,497	33,613,346	32,423,987

Consolidated Statements of Shareholders' Equity - USD ($)	Preferred Stock Series A Convertible Preferred Stock	Common Stock	Accumulated Deficit	Total
Balance at Jun. 30, 2011	$ 3,138,056	$ 219,772,598	$ (196,785,123)	$ 26,125,531
Balance (in shares) at Jun. 30, 2011	442,968	32,281,140
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of 4,550 warrants at $2.20 resulting in issuance of common stock		$ 10,010		10,010
Exercise of 4,550 warrants at $2.20 resulting in issuance of common (in shares)		4,550
Cashless exercise of 2,767 warrants resulting in issuance of common stock
Cashless exercise of 2,767 warrants resulting in issuance of common stock (in shares)		990
Issuance of fully-vested shares of common stock to employees and directors and vesting of shares under the 2010 Stock Incentive Plan		$ 248,851		248,851
Issuance of fully-vested shares of common stock to employees and directors and vesting of shares under the 2010 Stock Incentive Plan (in shares)		120,472
Issuance of fully-vested shares of common stock to employees and directors and vesting of shares under the 2011 Stock Incentive Plan		$ 335,636		335,636
Issuance of fully-vested shares of common stock to employees and directors and vesting of shares under the 2011 Stock Incentive Plan (in shares)		141,666
Vesting of shares under the 2012 Stock Incentive Plan		$ 197,613		197,613
Retirement of common stock		$ (51,381)		(51,381)
Retirement of common stock (in shares)		(38,749)
Net income (loss)			(5,211,238)	(5,211,238)
Balance at Jun. 30, 2012	$ 3,138,056	$ 220,513,327	(201,996,361)	21,655,022
Balance (in shares) at Jun. 30, 2012	442,968	32,510,069
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of 382,503 warrants at $1.13 resulting in issuance of common stock		$ 432,229		432,229
Exercise of 382,503 warrants at $1.13 resulting in issuance of common stock (in shares)		382,503
Cashless exercise of 36,186 warrants resulting in issuance of common stock (in shares)		17,094
Warrants issued in conjunction with Line of Credit Amendment		$ 55,962		55,962
Issuance of fully-vested shares of common stock to employees and directors and vesting of shares under the 2010 Stock Incentive Plan		$ 68,723		68,723
Issuance of fully-vested shares of common stock to employees and directors and vesting of shares under the 2010 Stock Incentive Plan (in shares)		62,942
Issuance of fully-vested shares of common stock to employees and directors and vesting of shares under the 2011 Stock Incentive Plan		$ 157,645		157,645
Issuance of fully-vested shares of common stock to employees and directors and vesting of shares under the 2011 Stock Incentive Plan (in shares)		96,665
Issuance of fully-vested shares of common stock to employees and directors and vesting of shares under the 2012 Stock Incentive Plan		$ 276,539		276,539
Issuance of fully-vested shares of common stock to employees and directors and vesting of shares under the 2012 Stock Incentive Plan (In shares)		279,806
Retirement of common stock		$ (121,052)		(121,052)
Retirement of common stock (in shares)		(64,847)
Net income (loss)			854,123	854,123
Balance at Jun. 30, 2013	$ 3,138,056	$ 221,383,373	(201,142,238)	23,379,191
Balance (in shares) at Jun. 30, 2013	442,968	33,284,232
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of 2,090,226 warrants at $1.13 resulting in issuance of common stock		$ 2,361,956		2,361,956
Exercise of 2,090,226 warrants at $1.13 resulting in issuance of common stock (in shares)		2,090,226
Issuance of fully-vested shares of common stock to employees and directors and vesting of shares under the 2010 Stock Incentive Plan		$ 6,024		6,024
Issuance of fully-vested shares of common stock to employees and directors and vesting of shares under the 2010 Stock Incentive Plan (in shares)		6,668
Issuance of fully-vested shares of common stock to employees and directors and vesting of shares under the 2011 Stock Incentive Plan		$ 17,366		17,366
Issuance of fully-vested shares of common stock to employees and directors and vesting of shares under the 2011 Stock Incentive Plan (in shares)		51,667
Issuance of fully-vested shares of common stock to employees and directors and vesting of shares under the 2012 Stock Incentive Plan		$ 505,651		505,651
Issuance of fully-vested shares of common stock to employees and directors and vesting of shares under the 2012 Stock Incentive Plan (In shares)		131,203
Retirement of common stock		$ (89,020)		(89,020)
Retirement of common stock (in shares)		(49,311)
Excess tax benefits from share-based compensation		$ 24,847		24,847
Net income (loss)			27,530,652	27,530,652
Balance at Jun. 30, 2014	$ 3,138,056	$ 224,210,197	$ (173,611,586)	$ 53,736,667
Balance (in shares) at Jun. 30, 2014	442,968	35,514,685

Consolidated Statements of Shareholders' Equity (Parentheticals) - $ / shares	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012
Statement Of Stockholders Equity [Abstract]
Exercise of warrants issuance of common stock	2,090,226	382,503	4,550
Exercise price of warrants (in dollars per share)	$ 1.13	$ 1.13	$ 2.20
Cashless Exercise Of Warrants In Issuance Of Common Stock		36,186	2,767

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012
OPERATING ACTIVITIES:
Net income (loss)	$ 27,530,652	$ 854,123	$ (5,211,238)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Charges incurred in connection with the vesting and issuance of common stock for employee and director compensation	529,041	502,907	782,100
(Gain) Loss on disposal of property and equipment	4,245	(20,343)	134,350
Non-cash interest and amortization of debt discount	2,095	53,867
Bad debt expense (recoveries), net	134,176	68,615	(48,270)
Depreciation	5,463,985	3,837,174	2,443,054
Amortization	21,953	742,400	997,900
Change in fair value of warrant liabilities	(65,429)	(267,928)	(1,813,687)
Deferred income taxes, net	(27,301,266)	27,646	12,599
Recognition of deferred gain from sale-leaseback transactions	(9,522)
Changes in operating assets and liabilities:
Accounts receivable	(157,071)	(247,358)	(758,952)
Finance receivables	52,531	17,729	(61,460)
Inventory	370,104	716,470	158,584
Prepaid expenses and other current assets	(190,783)	503,937	431,276
Accounts payable	412,664	1,164,804	498,082
Accrued expenses	267,004	(1,915,091)	2,513,898
Income taxes payable	21,021
Net cash provided by operating activities	7,085,400	6,038,952	78,236
INVESTING ACTIVITIES:
Purchase of property and equipment	(111,121)	(107,351)	(478,144)
Purchase of property for rental program	(10,883,473)	(9,092,394)	(5,754,670)
Proceeds from sale of rental equipment under sale-leaseback transactions	2,995,095
Proceeds from sale of property and equipment	82,047	18,908
Net cash used in investing activities	(7,917,452)	(9,180,837)	(6,232,814)
FINANCING ACTIVITIES:
Net proceeds from the issuance (retirement) of common stock and exercise of common stock warrants	2,272,936	311,177	(41,371)
Excess tax benefits from share-based compensation	24,847
Proceeds from line of credit	2,000,000	3,000,000
Repayment of long-term debt	(374,411)	(614,937)	(368,917)
Net cash provided by (used in) financing activities	3,923,372	2,696,240	(410,288)
Net increase (decrease) in cash and cash equivalents	3,091,320	(445,645)	(6,564,866)
Cash and cash equivalents at beginning of year	5,981,000	6,426,645	12,991,511
Cash and cash equivalents at end of year	9,072,320	5,981,000	6,426,645
Supplemental disclosures of cash flow information:
Cash paid for interest	259,820	118,934	38,891
Depreciation expense allocated to cost of sales	4,880,529	3,265,452	1,940,179
Reclass of rental program property to inventory, net	33,266	28,337
Prepaid items financed with debt	101,850	133,588	95,263
Prepaid interest from issuance of warrants for debt costs		55,962
Equipment and software acquired under capital lease	325,431	124,917	495,955
Equipment and software financed with long-term debt			252,968
Disposal of property and equipment	709,638	$ 98,928	$ 652,093
Disposal of property and equipment under sale-leaseback transactions	$ 1,918,920

BUSINESS	12 Months Ended
BUSINESS	Jun. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BUSINESS	1. BUSINESS USA Technologies, Inc. (the “Company”, “We”, “USAT”, or “Our”) was incorporated in the Commonwealth of Pennsylvania in January 1992. We are a provider of technology-enabled solutions and value-added services that facilitate electronic payment transactions primarily within the unattended Point of Sale (“POS”) market. We are a leading provider in the small ticket, beverage and food vending industry and are expanding our solutions and services to other unattended market segments, such as amusement, commercial laundry, kiosk, taxi and others. Since our founding, we have designed and marketed systems and solutions that facilitate electronic payment options, as well as telemetry and machine-to-machine (“M2M”) services, which include the ability to remotely monitor, control, and report on the results of distributed assets containing our electronic payment solutions. Historically, these distributed assets have relied on cash for payment in the form of coins or bills, whereas, our systems allow them to accept cashless payments such as through the use of credit or debit cards or other emerging contactless forms, such as mobile payment. The Company had net income of $27,530,652 for the year ended June 30, 2014. Included in net income is a benefit for income taxes of $27,255,398 for the year ended June 30, 2014. The Company had net income of $854,123 for the year ended June 30, 2013 and had incurred losses from its inception through June 30, 2012. Net income includes adjustments for changes to the fair value of our warrant liabilities, which are subject to secondary market conditions, and are not reasonably predictable. The Company’s ability to meet its future obligations is dependent upon the success of its products and services in the marketplace and the available capital resources. Until the Company’s products and services can generate sufficient annual revenues, the Company will be required to use its cash and cash equivalents on hand, and its line of credit (see Note 7), and may raise capital to meet its cash flow requirements including the issuance of Common Stock or debt financing.

ACCOUNTING POLICIES	12 Months Ended
ACCOUNTING POLICIES	Jun. 30, 2014
Accounting Policies [Abstract]
ACCOUNTING POLICIES	2. ACCOUNTING POLICIES CONSOLIDATION The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Stitch Networks Corporation (“Stitch”) and USAT Capital Corp LLC (“USAT Capital”). All significant intercompany accounts and transactions have been eliminated in consolidation. USE OF ESTIMATES The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. CASH EQUIVALENTS Cash equivalents represent all highly liquid investments with original maturities of three months or less. Cash equivalents are comprised of money market funds. The Company maintains its cash in bank deposit accounts, which may exceed federally insured limits at times. At June 30, 2014 and 2013, none of the cash and cash equivalents of the Company was payable to our customers. Included in accounts receivable are amounts for transactions processed with our card processers for which cash has not been received by the Company and included in accounts payable are amounts for transactions processed with our card processers and due to our customers, which are recorded net of fees due to the Company. Generally, contractual terms require us to remit amounts owed to our customers on a weekly basis. ACCOUNTS RECEIVABLE Accounts receivable are reported at their outstanding unpaid principal balances reduced by an allowance for doubtful accounts. The Company estimates doubtful accounts for accounts receivable and finance receivables based on historical bad debts, factors related to specific customers’ ability to pay and current economic trends. The Company writes off accounts receivable against the allowance when management determines the balance is uncollectible and the Company ceases collection efforts. Management believes that the allowance accrued is adequate to provide for its estimated credit losses. FINANCE RECEIVABLES The Company offers extended payment terms to certain customers for equipment sales under its Quick Start Program. In accordance with the Financial Accounting Standards Board Accounting Standards Codification® (“ASC”) Topic 840, “Leases”, agreements under the Quick Start Program qualify for sales-type lease accounting. Accordingly, the future minimum lease payments are classified as finance receivables in the Company’s consolidated balance sheets. Notes receivable or Quick Start leases are generally for a sixty month term. Finance receivables are carried at their contractual amount and charged off against the allowance for credit losses when management determines that recovery is unlikely and the Company ceases collection efforts. The Company recognizes a portion of the note or lease payments as interest income in the accompanying consolidated financial statements based on the effective interest rate method. INVENTORY Inventory consists of finished goods and packaging materials. The Company’s inventory is stated at the lower of cost (average cost basis) or market. PROPERTY AND EQUIPMENT Property and equipment are recorded at cost. Property and equipment are depreciated on the straight-line basis over the estimated useful lives of the related assets. Leasehold improvements are amortized on the straight-line basis over the lesser of the estimated useful life of the asset or the respective lease term. GOODWILL AND INTANGIBLE ASSETS Goodwill represents the excess of cost over fair value of the net assets purchased in acquisitions. The Company accounts for goodwill in accordance with ASC 350, “Intangibles – Goodwill and Other”. Under ASC 350, goodwill is not amortized to earnings, but instead is subject to periodic testing for impairment. In September 2011, the FASB issued ASU No. 2011-08 Intangibles – Goodwill and Other: Testing Goodwill for Impairment, which amended guidance to allow the Company to first assess qualitative factors to determine if it is necessary to perform the two-step quantitative impairment test. If after this assessment the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the two-step impairment test is unnecessary. If after this assessment the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, than the Company will perform the first step of the two-step impairment test. The first step screens for potential impairment, while the second step measures the amount of impairment. The Company uses a quantitative method, including a discounted cash flow analysis to complete the first step in this process. We also give consideration to our market capitalization. Testing for impairment is to be done at least annually and at other times if events or circumstances arise that indicate that impairment may have occurred. The Company has selected April 1 as its annual test date. The Company has concluded there has been no impairment of goodwill as a result of its testing on April 1, 2014, April 1, 2013, and April 1, 2012. The Company trademarks with an indefinite economic life are not being amortized. The trademarks, not subject to amortization, are related to the miser asset group and consist of the following trademarks: 1) VendingMiser, 2) CoolerMiser, 3) PlugMiser and 4) SnackMiser. The Company tests indefinite-lived intangible assets for impairment using a two-step process. The first step screens for potential impairment, while the second step measures the amount of impairment. The Company uses a relief from royalty analysis to complete the first step in this process. Testing for impairment is to be done at least annually and at other times if events or circumstances arise that indicate that impairment may have occurred. The Company has selected April 1 as its annual test date for its indefinite-lived intangible assets. The Company has concluded there has been no impairment during the fiscal years ended June 30, 2014, 2013 and 2012. Patents and trademarks, with an estimated economic life, are carried at cost less accumulated amortization, which is calculated on a straight-line basis over their estimated economic life. The Company reviews intangibles, subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An asset is considered to be impaired when the sum of the undiscounted future net cash flows resulting from the use of the asset and its eventual disposition is less than its carrying amount. The amount of the impairment loss, if any, is measured as the difference between the net book value of the asset and its estimated fair value. As of June 30, 2014 and June 30, 2013, the Company has concluded there has been no impairment of its patents or trademarks that is subject to amortization. LONG LIVED ASSETS In accordance with ASC 360, “Impairment or Disposal of Long-Lived Assets”, the Company reviews its definite lived long-lived assets whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If the carrying amount of an asset or group of assets exceeds its net realizable value, the asset will be written down to its fair value. In the period when the plan of sale criteria of ASC 360 are met, definite lived long-lived assets are reported as held for sale, depreciation and amortization cease, and the assets are reported at the lower of carrying value or fair value less costs to sell. The Company has concluded that the carrying amount of definite lived long-lived assets is recoverable as of June 30, 2014 and June 30, 2013. FAIR VALUE OF FINANCIAL INSTRUMENTS The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2010-06, “Fair Value Measurements and Disclosures (“Topic 820”): Improving Disclosures about Fair Value Measurements.” ASU 2010-06 amends certain disclosure requirements of Subtopic 820-10. This ASU provides additional disclosures for transfers in and out of Levels 1 and 2 and for activity in Level 3. This ASU also clarifies certain other existing disclosure requirements including level of desegregation and disclosures around inputs and valuation techniques. The Company’s financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy. The three levels are as follows: Level 1- Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2- Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). Level 3- Inputs are unobservable and reflect the Company’s assumptions that market participants would use in pricing the asset or liability. The Company develops these inputs based on the best information available. The Company’s financial instruments, principally cash equivalents, accounts receivable, finance receivables, prepaid expenses and other assets, accounts payable and accrued expenses, are carried at cost which approximates fair value due to the short-term maturity of these instruments. The fair value of the Company’s obligations under its long-term debt and credit agreements approximates their carrying value as such instruments are at market rates currently available to the Company. CONCENTRATION OF CREDIT RISK Financial instruments that subject the Company to a concentration of credit risk consist principally of cash and cash equivalents and accounts and finance receivables. The Company maintains cash and cash equivalents with various financial institutions. Approximately 22% and 41% of the Company’s trade accounts and finance receivables at June 30, 2014 and 2013, respectively, were concentrated with one customer. Approximately 26%, 37%, and 43% of the Company’s license and transaction processing revenues for the years ended June 30, 2014, 2013, and 2012, respectively, were concentrated with one and two customer(s), respectively: 26%, 26%, and 25%, respectively for each year, with one; and 11%, and 18%, for the years ended June 30, 2013, and 2012, respectively, with another. There was no concentration of equipment sales revenue for the years ended June 30, 2014, 2013, and 2012. The Company’s customers are principally located in the United States. REVENUE RECOGNITION Revenue from the sale of equipment is recognized on the terms of freight-on-board shipping point. Activation fee revenue is recognized when the Company’s cashless payment device is initially activated for use on the Company network. Transaction processing revenue is recognized upon the usage of the Company’s cashless payment and control network. License fees for access to the Company’s devices and network services are recognized on a monthly basis. In all cases, revenue is only recognized when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed and determinable, and collection of the resulting receivable is reasonably assured. The Company estimates an allowance for product returns at the date of sale. EQUIPMENT RENTAL The Company offers its customers a rental program for its ePort devices, the JumpStart Program (“JumpStart”). The JumpStart terms are typically 36 months and are cancellable with sixty days written notice. In accordance with ASC 840, “Leases”, the Company classifies the rental agreements as operating leases. For the years ended June 30, 2014, 2013, and 2012, there was approximately $1,032,000, $806,000, and $607,000, respectively, of activation fee revenue related to JumpStart equipment included in equipment sales in the Consolidated Statements of Operations. There was also approximately $13,337,000, $10,193,000, and $6,074,000 of service fee revenue related to JumpStart equipment included in license and transaction fees in the Consolidated Statements of Operations for the years ended June 30, 2014, 2013, and 2012, respectively. Cost for the JumpStart revenues, which consists of depreciation expense on the JumpStart equipment, approximated $4,804,900, $3,171,000, and $1,740,000 for the years ended June 30, 2014, 2013, and 2012, respectively, and was included in cost of services in the Consolidated Statements of Operations. At June 30, 2014 and 2013, approximately, $19,824,000 and $15,685,000, respectively, of ePort equipment utilized by the JumpStart Program was included in property and equipment, net on the Consolidated Balance Sheet (see Note 4). WARRANTY COSTS The Company generally warrants its products for one to three years. Warranty costs are estimated and recorded at the time of sale based on historical warranty experience, if available. These costs are reviewed and adjusted, if necessary, periodically throughout the year. SHIPPING AND HANDLING Shipping and handling fees billed to our customers in connection with sales are recorded as revenue. The costs incurred for shipping and handling of our product are recorded as cost of sales. RESEARCH AND DEVELOPMENT EXPENSES Research and development expenses are expensed as incurred. Research and development expenses, which are included in selling, general and administrative expenses in the Consolidated Statements of Operations, were approximately $1,018,000, $901,000, and $1,038,000, for the years ended June 30, 2014, 2013, and 2012, respectively. Our research and development initiatives focus on adding features and functionality to our system solutions through the development and utilization of our processing and reporting network and new technology. ACCOUNTING FOR EQUITY AWARDS In accordance with ASC 718 the cost of employee services received in exchange for an award of equity instruments is based on the grant-date fair value of the award and allocated over the vesting period of the award. As detailed in Note 12, the Company recorded stock compensation expense of $450,078, $483,740, and $584,487 related to common stock grants and vesting of shares previously granted to employees and directors during the years ended June 30, 2014, 2013, and 2012, respectively. These expenses exclude the Performance Share Plans for the 2014 and 2013 fiscal years (“2014 Plan” and the “2013 Plan”) and the Long-Term Equity Incentive Program (“LTIP” or the “LTIP Program”) covering the Company’s executive officers. INCOME TAXES The Company follows the provisions of FASB ASC 740, Accounting for Uncertainty in Income Taxes, which provides detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in the financial statements. Tax positions must meet a “more-likely-than-not” recognition threshold at the effective date to be recognized upon the adoption of ASC 740 and in subsequent periods. Income taxes are computed using the asset and liability method of accounting. Under the asset and liability method, a deferred tax asset or liability is recognized for estimated future tax effects attributable to temporary differences and carryforwards. The measurement of deferred income tax assets is adjusted by a valuation allowance, if necessary, to recognize future tax benefits only to the extent, based on available evidence it is more likely than not such benefits will be realized. The Company recognizes interest and penalties, if any, related to uncertain tax positions in selling, general and administrative expenses. No interest or penalties related to uncertain tax positions were accrued or incurred during the years ended June 30, 2014, 2013, and 2012. The Company files income tax returns in the United States federal jurisdiction and various state jurisdictions. The tax years ended June 30, 2011 through June 30, 2014 remain open to examination by taxing jurisdictions to which the Company are subject. As of June 30, 2014, the Company did not have any income tax examinations in process. EARNINGS (LOSS) PER COMMON SHARE Basic earnings (loss) per share are calculated by dividing income (loss) applicable to common shares by the weighted average common shares outstanding for the period. Diluted earnings per share is calculated by dividing income (loss) applicable to common shares by the weighted average common shares outstanding for the year plus the effect of potential common shares unless such effect is anti-dilutive. For the fiscal year ended June 30, 2014 no exercise of stock purchase warrants (4,309,000); or the conversion of preferred stock (85,936) or cumulative preferred dividends (12,261) was assumed during the fiscal year ended June 30, 2014 because the result would be anti-dilutive. For the fiscal year ended June 30, 2013 exercise of 825,673 stock purchase warrants was assumed to calculate the weighted average common shares outstanding for the year. Exercise of stock purchase warrants (5,212,955) or the conversion of preferred stock (85,847) or cumulative preferred dividends (11,596) was not assumed during the fiscal year ended June 30, 2013 because the result would be anti-dilutive. For the fiscal year ended June 30, 2012 no exercise of stock options (45,333); or stock purchase warrants (8,045,619); or the conversion of preferred stock (4,430) or cumulative preferred dividends (10,932) was assumed during the fiscal year ended June 30, 2012 because the result would be anti-dilutive. RECENT ACCOUNTING PRONOUCEMENTS The Company is evaluating whether the effects of the following recent accounting pronouncements or any other recently issued, but not yet effective accounting standards will have a material effect on the Company’s consolidated financial position, results of operations, or cash flows. In July 2013, the Financial Accounting Standards Board issued ASU 2013-11 Income Taxes (Topic 740): Presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This will be effective for the Company beginning with the fiscal year ending June 30, 2015. In May 2014, the Financial Accounting Standards Board issued ASU 2014-09 Revenue from Contracts with Customers (Topic 606). This will be effective for the Company beginning with the fiscal year ending June 30, 2018. In June 2014, the Financial Accounting Standards Board issued ASU 2014-12 Compensation – Stock Compensation (Topic 718): Accounting for share-based payments when the terms of the award provide that a performance target could be achieved after the requisite service period. This will be effective for the Company beginning with the fiscal year ending June 30, 2017.

FINANCE RECEIVABLES

12 Months Ended

Jun. 30, 2014

Receivables [Abstract]

FINANCE RECEIVABLES

3. FINANCE RECEIVABLES

Finance Receivables consist of the following:


	June 30,		June 30,
	2014		2013

Total finance receivables	$	472,587	$	525,118
Less current portion		119,793		116,444
Non-current portion of finance receivables	$	352,794	$	408,674

As of June 30, 2014 and 2013, there was no allowance for credit losses of finance receivables. As the Company collects monthly payments of the receivables from the customers’ transaction funds the risk of loss was determined to be remote.

Credit Quality Indicators
As of June 30, 2014

Credit risk profile based on payment activity:
	Leases

Performing	$	472,587
Nonperforming		-
Total	$	472,587


Age Analysis of Past Due Finance Receivables
As of June 30, 2014

	31 – 60		61 – 90		Greater than						Total
	Days Past Due		Days Past Due		90 Days Past Due		Total Past Due		Current		Finance Receivables

Leases	$	-	$	909	$	378	$	1,287	$	471,300	$	472,587
Total	$	-	$	909	$	378	$	1,287	$	471,300	$	472,587


Age Analysis of Past Due Finance Receivables
As of June 30, 2013

	31 – 60		61 – 90		Greater than						Total
	Days Past Due		Days Past Due		90 Days Past Due		Total Past Due		Current		Finance Receivables

Leases	$	-	$	814	$	-	$	814	$	524,304	$	525,118
Total	$	-	$	814	$	-	$	814	$	524,304	$	525,118

PROPERTY AND EQUIPMENT

12 Months Ended

Jun. 30, 2014

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

4. PROPERTY AND EQUIPMENT

Property and equipment, at cost, consist of the following:


	Useful	June 30,
	Lives	2014			2013
Computer equipment and purchased software	3-7 years	$	4,581,001		$	4,688,104
Property and equipment used for Rental Program	5 years		30,348,918			21,574,225
Furniture and equipment	3-7 years		681,717			693,554
Leasehold improvements	Lesser of life or lease term		575,343			539,629
			36,186,979			27,495,512
Less accumulated depreciation			(15,048,399	)		(10,255,447	)
		$	21,138,580		$	17,240,065

Assets under capital lease totaled approximately $2,031,000 and $1,965,000 as of June 30, 2014 and 2013, respectively. Capital lease amortization of approximately $305,000, $265,000, and $189,000, is included in depreciation expense for the years ended June 30, 2014, 2013, and 2012, respectively.

ePort equipment utilized by the JumpStart Program is identified as Property and equipment used for Rental Program in the above table. Accumulated depreciation attributable to the Property and equipment used for Rental Program is approximately $10,525,000 and $5,889,000 as of June 30, 2014 and 2013, respectively and is included in accumulated depreciation for the respective years in the above table.

INTANGIBLE ASSETS

12 Months Ended

Jun. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

5. INTANGIBLE ASSETS

Amortization expense relating to all acquired intangible assets was approximately $22,000, $742,000, and $998,000 during each of the years ended June 30, 2014, 2013, and 2012, respectively. The intangible asset balance and related accumulated amortization consisted of the following:


	June 30, 2014
	Gross
	Carrying		Accumulated			Net Carrying
	Amount		Amortization			Value
Intangible assets:

Trademarks	$	1,482,100	$	(1,050,000	)	$	432,100
Patents		9,294,000		(9,294,000	)		-
Total	$	10,776,100	$	(10,344,000	)	$	432,100

	June 30, 2013
	Gross
	Carrying		Accumulated			Net Carrying
	Amount		Amortization			Value
Intangible assets:

Trademarks	$	1,482,100	$	(1,050,000	)	$	432,100
Patents		9,294,000		(9,272,047	)		21,953
Total	$	10,776,100	$	(10,322,047	)	$	454,053

The Company’s test for impairment of its indefinite-lived trademarks includes the following trademarks: 1) VendingMiser, 2) CoolerMiser, 3) PlugMiser and 4) SnackMiser. As a result of its testing in fiscal years ended June 30, 2014, 2013 and 2012, the Company determined that no impairment had occurred. At June 30, 2014, the definitive-lived intangible assets have been fully amortized. At June 30, 2014 and 2013, $432,100 of trademarks has an indefinite life and is included in the intangible assets tables above.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

ACCRUED EXPENSES

12 Months Ended

Jun. 30, 2014

Accrued Liabilities [Abstract]

ACCRUED EXPENSES

6. ACCRUED EXPENSES

Accrued expenses consist of the following:


	June 30,		June 30,
	2014		2013

Accrued compensation and related sales commissions	$	545,110	$	583,710
Accrued professional fees		214,615		165,444
Accrued taxes and filing fees		640,958		253,527
Advanced customer billings		370,040		346,868
Accrued rent		155,712		226,582
Accrued other		175,538		258,838
	$	2,101,973	$	1,834,969

LINE OF CREDIT	12 Months Ended
LINE OF CREDIT	Jun. 30, 2014
Line Of Credit Facility [Abstract]
LINE OF CREDIT	7. LINE OF CREDIT On July 10, 2012, the Company entered into a Loan and Security Agreement and other ancillary documents (the “Loan Documents”) with Avidbank Corporate Finance, a division of Avidbank (the “Bank”), providing for a secured asset-based revolving line of credit in an amount of up to $3 million (the “Line of Credit”). The Company intends to use advances under the Line of Credit towards the financing of growth initiatives like its JumpStart Program and other working capital needs. The Loan Documents provide that the aggregate amount of advances under the Line of Credit shall not exceed the lesser of (i) $3.0 million, or (ii) 75% of eligible accounts receivable as defined in the Loan Documents plus 80% of the prior two months transaction processing revenues and networking service fees as defined in the Loan Documents, provided that the amounts advanced on account of such processing revenues and service fees shall not exceed $2,000,000 without the Bank’s prior consent, after the First Amendment entered into on January 2, 2013. As a condition of the Bank entering into the First Amendment, the Company issued to the Bank warrants to purchase up to 45,000 shares of common stock of the Company. The warrants are exercisable at any time prior to December 31, 2017 at an exercise price of $2.10 per share. Upon the issuance of the 45,000 shares of common stock, the fair value of the warrants is $55,962 using a Black Scholes model, which was recorded as prepaid interest and included in other assets on the Consolidated Balance Sheet, and is being amortized as non-cash interest expense over the remaining term of the Line of Credit as amended in January 2013. Non-cash interest of $53,867 has been recognized for the year ended June 30, 2013. The outstanding balance of the amounts advanced under the Line of Credit will bear interest at 2% above the prime rate as published in The Wall Street Journal or 5% whichever is higher. Interest is payable by the Company to the Bank on a monthly basis, provided, that the minimum interest payable by the Company to the Bank with respect to each six month period shall be $20,000. The Line of Credit and the Company’s obligations under the Loan Documents are secured by substantially all of the Company’s assets, including its intellectual property. The term of the Line of Credit is one year. At the time of maturity all outstanding advances under the Line of Credit as well as any unpaid interest is due and payable. Prior to maturity of the Line of Credit, the Company may prepay amounts due under the Line of Credit without penalty, and subject to the terms of the Loan Documents, may re-borrow any such amounts. On April 2, 2013, the Company and the Bank, entered into a Second Amendment (the “Second Amendment”) to the Loan and Security Agreement. The Second Amendment provided a change to the definition of Adjusted EBITDA for covenant calculations for the fiscal quarters ended through March 31, 2014. On April 15, 2013, the Company and the Bank, entered into a Third Amendment (the “Third Amendment”) to the Loan and Security Agreement. The Third Amendment provides that, among other things, the aggregate amount available under the Line of Credit will be increased from $3.0 million to $5.0 million, and the maturity date of the Line of Credit will be extended for another twelve months, or until June 21, 2014.The Third Amendment provides that the aggregate amount of advances now available to the Company under the Line of Credit cannot exceed the lesser of (i) $5.0 million, or (ii) 80% of the prior three months transaction processing revenues and networking service fees as defined in the Loan Agreement. On April 29, 2013, the Company and the Bank entered into a Fourth Amendment (“Fourth Amendment”) to the Loan and Security Agreement to change the RML from the monthly “net cash provided by (used in) operating activities” including Jumpstart investments to the average monthly amount (based on the prior three months) of the Company’s “net cash provided by (used in) operating activities” including JumpStart investments, as set forth in the Company’s monthly cash flow statements prepared in accordance with GAAP. On September 26, 2013, the Company and the Bank entered into a Fifth Amendment (“Fifth Amendment”) to the Loan and Security Agreement to change the definition of Adjusted EBITDA for covenant calculations for the four fiscal quarters ending through June 30, 2014. On May 15, 2014, the Company and the Bank entered into a Sixth Amendment (“Sixth Amendment”) to the Loan and Security Agreement in which the Bank consents to the sale and disposition of the rental equipment in connection with the Sale Leaseback transactions entered into by the Company in June 2014 (see Note 16 and Note 17). On June 17, 2014, the Company and the Bank entered into a Seventh Amendment (“Seventh Amendment”) to the Loan and Security Agreement. The Seventh Amendment increased the aggregate amount of advances available under the line of credit to $7,000,000 and extended the maturity date to June 21, 2015. In addition, it provided a change to the definition of Adjusted EBITDA for exclusion of lease expense pursuant to the Sale Leaseback transactions (Note 16). As of June 30, 2014, the Company and the Bank entered into an Eighth Amendment (“Eighth Amendment”) to the Loan and Security Agreement to change the minimum Adjusted EBITDA covenant for the quarter ended June 30, 2014. The Loan Documents contain customary affirmative and negative covenants, including achieving a minimum Adjusted EBITDA and Minimum Liquidity, as defined in the Loan Documents and amendments. The Loan Documents also contain customary events of default, including, among other things, payment defaults, breaches of covenants, and bankruptcy and insolvency events, subject to grace periods in certain instances. Upon an event of default, the Bank may declare all of the outstanding obligations of the Company under the Line of Credit and Loan Documents to be immediately due and payable, and exercise any other rights provided for under the Loan Documents. During the year ended June 30, 2014, the Company obtained waivers from the Bank for failure to satisfy two Minimum Liquidity covenants and one Adjusted EBITDA covenant. During the year ended June 30, 2013 the Company obtained waivers from the Bank for failure to satisfy two covenants – Minimum Liquidity and Adjusted EBITDA. The balance due on the Line of Credit was $5,000,000 and $3,000,000 at June 30, 2014 and 2013, respectively. At June 30, 2014, $2,000,000 was available under the Line of Credit.

LONG-TERM DEBT

12 Months Ended

Jun. 30, 2014

Debt Disclosure [Abstract]

LONG-TERM DEBT

8. LONG-TERM DEBT

Long-term debt consists of the following:


	June 30,		June 30,
	2014		2013

Capital lease obligations	$	414,525	$	345,925
Loan agreements		8,251		23,981
		422,776		369,906
Less current portion		172,911		247,152
	$	249,865	$	122,754

The maturities of long-term debt as of June 30, 2014 are as follows:


2015	$	172,911
2016		91,003
2017		80,251
2018		56,282
Thereafter		22,329
	$	422,776

CAPITAL LEASES

During July 2009, the Company entered into a capital lease for office equipment totaling $24,836, due in 46 monthly installments of $677. This was satisfied in June 2013.

During August 2011, the Company entered into a capital lease for network equipment totaling approximately $496,000, due in 36 monthly payments of $14,145 through August 2014.

During April 2012, the Company entered into a capital lease for network equipment totaling approximately $62,000, due in 36 monthly payments of $1,785 through February 2015.

During January 2013, the Company entered into a capital lease for network equipment totaling approximately $45,000, due in 37 monthly payments of $1,501 through December 2015.

During March 2013, the Company entered into a capital lease for equipment to support customer service totaling approximately $15,000, due in 36 monthly payments of $464 through January 2016.

During March 2013, the Company entered into a capital lease for network equipment totaling approximately $24,000, due in three annual installments of $8,686 through April 2015.

During April 2013, the Company entered into a capital lease for equipment totaling approximately $32,000, due in twelve quarterly installments of $2,915 through December 2015.

During June 2013, the Company entered into a capital lease for office equipment totaling approximately $16,000, due in 48 monthly installments of $456 through June 2017.

During July 2013, the Company entered into a capital lease for office equipment totaling approximately $22,000 due in 24 monthly installments of $1,033 through July 2015.

In February 2014, the Company entered into a capital lease for network equipment totaling approximately $196,000 due in 48 monthly installments of $4,972 through January 2018.

In March 2014, the Company entered into a capital lease for leasehold improvements and office furniture totaling approximately $103,000 due in sixty monthly installments of $2,149 through May 2019.

In April 2014, the Company entered into a capital lease for office equipment totaling approximately $4,000 due in 36 monthly installments of $135 through April 2017.

LOAN AGREEMENTS

During March 2010, the Company financed the purchase of computer equipment totaling $195,000 due in 36 monthly installments at an interest rate of 4.95%. This loan was satisfied in March 2013.

During July 2011, the Company financed a portion of the premiums for various insurance policies totaling $90,372 due in nine equal monthly payments at an interest rate of 5.57%. During July 2012, the Company financed a portion of the premiums for various insurance policies totaling $128,062, due in ten monthly payments of $13,103 through May 2013 at an interest rate of 5.02%. During August 2013, the Company financed a portion of the premiums for various insurance policies totaling $101,850, due in nine monthly payments of $11,567 through April 2014 at an interest rate of 5.27%.

During November 2011, the Company financed network equipment totaling approximately $46,000, due in twelve equal quarterly installment payments of $4,226 through October 2014 at an interest rate of 6.47%.

During June 2012, the Company financed software licenses totaling approximately $212,000, due in four equal quarterly installment payments at an interest rate of 11.09%.

FAIR VALUE OF FINANCIAL INSTRUMENTS

12 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

9. FAIR VALUE OF FINANCIAL INSTRUMENTS

In accordance with the fair value hierarchy described in Note 2, the following table shows the fair value of the Company’s financial instruments that are required to be measured at fair value as of June 30, 2014 and 2013:


June 30, 2014	Level 1		Level 2		Level 3		Total

Cash equivalents	$	-	$	-	$	-	$	-
Common stock warrant liability, warrants exercisable at $2.6058 from September 18, 2011 through September 18, 2016	$	-	$	-	$	585,209	$	585,209

June 30, 2013	Level 1		Level 2		Level 3		Total

Cash equivalents	$	192,620	$	-	$	-	$	192,620
Common stock warrant liability, warrants exercisable at $2.6058 from September 18, 2011 through September 18, 2016	$	-	$	-	$	650,638	$	650,638

As of June 30, 2014 and 2013, the fair values of the Company’s Level 1 financial instruments were $0 and $192,620, respectively. These financial instruments consist of cash equivalents, including money market accounts. As of June 30, 2014 and 2013, the Company held no Level 2 financial instruments.

As of June 30, 2014 and 2013, the fair values of the Company’s Level 3 financial instruments totaled $585,209 and $650,638, respectively. The Level 3 financial instrument consists of common stock warrants issued by the Company in March 2011, which include features requiring liability treatment of the warrants. The fair value of warrants issued in March 2011 (see Note 13) to purchase 3.9 million shares of the Company’s common stock is based on valuations performed by an independent third party valuation firm. The fair value was determined using proprietary valuation models using the quality of the underlying securities of the warrants, restrictions on the warrants and security underlying the warrants, time restrictions and precedent sale transactions completed in the secondary market or in other private transactions. There were no transfers of assets or liabilities between level 1, level 2, or level 3 during the years ended June 30, 2014 and 2013.

The following table summarizes the changes in fair value of the Company’s Level 3 financial instruments for the years ended:


	June 30,
	2014			2013

Beginning balance	$	(650,638	)	$	(918,566	)
Gain due to change in fair value of warrant liabilities, net		65,429			267,928
Ending balance	$	(585,209	)	$	(650,638	)

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

INCOME TAXES

12 Months Ended

Jun. 30, 2014

Income Tax Disclosure [Abstract]

INCOME TAXES

10. INCOME TAXES

The Company has significant deferred tax assets, a substantial amount of which result from operating loss carryforwards. The Company routinely evaluates its ability to realize the benefits of these assets to determine whether it is more like than not that such benefit will be realized. In periods prior to the year ended June 30, 2014, the Company’s evaluation of its ability to realize the benefit from its deferred tax assets resulted in a full valuation allowance against such assets. Based upon earnings performance that the Company has achieved currently and in the recent past along with the belief that such performance will continue into future years, the Company has determined that it is more likely than not that a substantial portion of its deferred tax assets will be realized and has reduced its valuation allowances recorded in prior years by $27,255,398, which includes $40,245 of deferred tax liabilities recorded as of June 30, 2013 (as described hereinafter) reversing in the current year .

In addition to recent periods’ performance, the evaluation of the amount of deferred tax assets expected to be realized involves forecasting the amount of taxable income that will be generated in future years. The Company has forecasted future results using estimates that management believes to be conservative. The number of connections added in a service year are a key metric, which in the Company’s recurring revenue service model become an important ingredient in driving future growth and earnings. The forecasts the Company used assumed that significantly fewer net connections would be added to its service year than what it has historically achieved during each of its previous five fiscal years. With respect to its forecasts, the Company also took into account several industry analysts who have projected that demand for technology and services similar to the Company’s will continue to grow in the markets the Company serves. Using these forecasts, the Company estimated that it was more likely than not that approximately $64 million of its operating loss carryforwards would be utilized to offset corresponding future taxable income.

If in future periods the Company demonstrates its ability to grow future taxable income in excess of the forecasts described above, it will re-evaluate the need to keep some, or all, of the remaining valuation allowances of $22,833,685 on its deferred tax assets.

The reduction of the $27,255,398 in valuation allowances is reflected as an income tax benefit in the provision for income taxes for the year ended June 30, 2014 and is net of amounts that otherwise would have been recorded for current federal income taxes of $21,021, deferred federal income taxes of $52,533, deferred state income taxes of $21,343 and $24,847 credited to common stock related to excess tax benefits from stock-based compensation.

The provision for income taxes for the years ended June 30, 2013 and 2012 were $27,646 and $12,599, respectively, comprised of deferred federal income taxes of $20,842 and $9,498, respectively, and deferred state income taxes of $6,804 and $3,101, respectively. These deferred income taxes were recorded for the future potential income tax effects for basis differences between financial reporting and income tax purposes for indefinite life intangible assets and goodwill that are being amortized for income tax purposes but not for financial reporting. Because there was a full valuation allowance reflected against deferred tax assets as of June 30, 2013 and June 30, 2012, the potential future income tax effects associated with such indefinite life assets were not subject to offset deferred tax assets with finite lives.

For the year ended June 30, 2014, an income tax provision of $93,586 at the federal statutory rate of 34% is indicated based upon the income before provision for income taxes. In recording the benefit from income taxes, the reduction in valuation allowances of $27,255,398 had the effect of negating the effects for state income taxes net of federal benefit of $17,989 and permanent differences of $8,168.

For the year ended June 30, 2013 an income tax provision of $299,801 at the federal statutory rate of 34% is indicated based upon the income before provision for income taxes. In recording the provision for income taxes the indicated provision was reduced for the effects of decreases in the valuation allowances of $205,266 for federal income taxes associated with deferred tax assets, decreased for the effects of permanent differences of $71,379 and increased by state income taxes net of federal benefit of $4,490.

For the year ended June 30, 2012 an income tax benefit of $1,767,537 at the federal statutory rate of 34% is indicated based upon the income before provision for income taxes. In recording the provision for income taxes the indicated benefit was reduced for the effects of increases in the valuation allowances of $2,372,354 for federal income taxes associated with deferred tax assets, increased for the effects of permanent differences of $594,264 and reduced by state income taxes net of federal benefit of $2,046.

At June 30, 2014 the Company had operating loss carryforwards of $165,566,973 to offset future taxable income expiring through approximately 2034. The timing and extent to which the Company can utilize operating loss carryforwards in any year may be limited by provisions of the Internal Revenue Code regarding changes in ownership of corporations (i.e. IRS Code Section 382). The changes in ownership limitations under IRS Code Section 382 have had the effect of limiting the maximum amount of operating loss carryforwards as of June 30, 2014 available for use to offset future years’ taxable income to $127,362,276. Those operating loss carryforwards start to expire June 30, 2022.

The net deferred tax assets arose primarily from net operating loss carryforwards, as well as the use of different accounting methods for financial statement and income tax reporting purposes as follows:


	June 30,
	2014			2013
Deferred tax assets:
Net operating loss carryforwards	$	47,776,042		$	49,534,732
Deferred research and development costs		710,640			135,189
Intangibles		907,274			1,132,471
Stock-based compensation		250,426			230,452
Deferred gain on assets under sale-leaseback transaction		460,902			-
Other		740,040			671,947
		50,845,324			51,704,791
Deferred tax liabilities:
Intangibles and goodwill		(67,459	)		(40,245	)
Fixed Assets		(683,159	)		(585,889	)
Deferred tax assets, net		50,094,706			51,078,657
Valuation allowance		(22,833,685	)		(51,118,902	)
Deferred tax assets (liabilties), net of allowance		27,261,021			(40,245	)
Less current portion		907,691			-
Deferred tax assets (liabilties), non-current	$	26,353,330		$	(40,245	)

PREFERRED STOCK	12 Months Ended
PREFERRED STOCK	Jun. 30, 2014
Preferred Stock [Abstract]
PREFERRED STOCK	11. PREFERRED STOCK The authorized Preferred Stock may be issued from time to time in one or more series, each series with such rights, preferences or restrictions as determined by the Board of Directors. As of June 30, 2014 each share of Series A Preferred Stock is convertible into 0.194 of a share of Common Stock and each share of Series A Preferred Stock is entitled to 0.194 of a vote on all matters on which the holders of Common Stock are entitled to vote. Series A Preferred Stock provides for an annual cumulative dividend of $1.50 per share, payable when, as and if declared by the Board of Directors, to the shareholders of record in equal parts on February 1 and August 1 of each year. Any and all accumulated and unpaid cash dividends on the Series A Preferred Stock must be declared and paid prior to the declaration and payment of any dividends on the Common Stock. Cumulative unpaid dividends at June 30, 2014 and 2013 amounted to $12,260,776 and $11,596,324, respectively. Cumulative unpaid dividends are convertible into common shares at $1,000 per common share at the option of the shareholder. During the years ended June 30, 2014, 2013 and 2012 no shares of Preferred Stock nor cumulative preferred dividends converted into shares of common stock. The Series A Preferred Stock may be called for redemption at the option of the Board of Directors for a price of $11.00 per share plus payment of all accrued and unpaid dividends. No such redemption has occurred as of June 30, 2014. In the event of any liquidation as defined in the Company’s Articles of Incorporation, the holders of shares of Series A Preferred Stock issued shall be entitled to receive $10.00 for each outstanding share plus all cumulative unpaid dividends. If funds are insufficient for this distribution, the assets available will be distributed ratably among the preferred shareholders.

COMMON STOCK

12 Months Ended

Jun. 30, 2014

Common Stock [Abstract]

COMMON STOCK

12. COMMON STOCK

The Company’s Board of Directors has authorized various compensation plans. Activity for these plans during the years ended June 30, 2014, 2013, and 2012 are as follows:

On June 15, 2010, the Company’s shareholders approved the 2010 Stock Incentive Plan to allow up to 300,000 shares of Common Stock to be available for issuance to future or current employees, directors and consultants of the Company. During the years ended June 30, 2014, 2013 and 2012, the Company issued 6,668, 62,942 and 120,472 shares under the plan totaling $6,024, $68,723 and $248,851, respectively based on the grant date fair value of the shares. As of June 30, 2014, no more shares under this plan are available for future issuance.

On June 13, 2011, the Company’s shareholders approved the 2011 Stock Incentive Plan to allow up to 300,000 shares of Common Stock to be available for issuance to future or current employees, directors and consultants of the Company. During the years ended June 30, 2014, 2013 and 2012, the Company issued 51,667, 96,665 and 141,666 shares under the plan totaling $17,366, $157,645 and $335,636, respectively based on the grant date fair value of the shares. As of June 30, 2014, 10,002 shares under the plan have been granted, but have not been issued as they are subject to various vesting provisions, and no more shares are available for future issuance.

On June 28, 2012, the Company’s shareholders approved the 2012 Stock Incentive Plan to allow up to 500,000 shares of Common Stock to be available for issuance to future or current employees, directors and consultants of the Company. During the years ended June 30, 2014 and 2013, the Company issued 131,203 and 279,806 shares under the plan totaling $505,651 and $276,539, respectively based on the grant date fair value of the shares. During the year ended June 30, 2012, the Company did not issue any shares under the plan and recorded $197,613 related to the vesting of shares to be issued under this plan. As of June 30, 2014, 33,809 shares under the plan have been granted, but have not been issued as they are subject to various vesting provisions, and 31,484 shares are available for future issuance.

On June 21, 2013, the Company’s shareholders approved the 2013 Stock Incentive Plan to allow up to 500,000 shares of Common Stock to be available for issuance to future or current employees, directors and consultants of the Company. During the years ended June 30, 2014 and 2013, the Company did not grant or issue any shares under the plan. As of June 30, 2014, 500,000 shares are available for future issuance.

On September 27, 2011 the Company and Mr. Jensen, the Company’s former Chief Executive Officer, entered into an amended and restated employment agreement (the “Jensen Employment Agreement”) and on October 14, 2011 a Separation Agreement and Release (the “Separation Agreement”).

The Jensen Employment Agreement provided for the issuance of an aggregate of 150,000 shares of common stock to Mr. Jensen under its stock incentive plans which were to vest as follows: 50,000 on the date the agreement was signed (September 27, 2011) by Mr. Jensen and the Company; 50,000 on the first anniversary of the date of signing (September 27, 2012); and 50,000 on the second anniversary of the date of signing (September 27, 2013).

Pursuant to the Separation Agreement, Mr. Jensen resigned as Chairman, Chief Executive Officer and as a Director of the Company, effective October 14, 2011. Under the Separation Agreement, the Company issued to Mr. Jensen 41,667 shares of its common stock which were awarded in connection with the signing of an amendment to his employment agreement in April 2011, which would not have otherwise vested until April 2012; and 50,000 shares of the Company’s common stock which were awarded to Mr. Jensen in connection with the signing Jensen Employment Agreement and which would not have otherwise vested until September 2012.

Pursuant to the Separation Agreement, 41,667 shares of common stock that would have vested in April 2013 in connection with the signing of an amendment to Mr. Jensen’s employment agreement in April 2011 and 50,000 shares of common stock that would have vested in September 2013 in connection with the signing of his amended and restated employment agreement in September 2011 were forfeited.

On September 27, 2011, the Company and Mr. Herbert entered into a second amendment to his employment agreement. The Company issued an aggregate of 100,000 shares of common stock to Mr. Herbert under its stock incentive plans which vest as follows: 33,333 on the date the agreement was signed by Mr. Herbert and the Company (September 27, 2011); 33,333 on the first anniversary of the date of signing (September 27, 2012); and 33,334 on the second anniversary of the date of signing (September 27, 2013).

In September 2012, the Board of Directors accepted the recommendation of the Compensation Committee and granted 71,429 shares of Common Stock with a grant date fair value of $100,000 to Mr. Herbert under the 2012 Stock Incentive Plan (the “2012 Plan”) to vest over a period of up to three years based on performance of the Company’s Common Stock. During the years ended June 30, 2014 and 2013, the Company issued 0 and 47,620 shares of Common Stock and recorded $0 and $66,668 of expense, respectively for this grant. As of June 30, 2014, 23,809 shares of Common Stock remain unvested for this grant.

On September 27, 2011, the Company and Mr. DeMedio entered into a fifth amendment to his employment agreement pursuant to which Mr. DeMedio was granted an aggregate of 25,000 shares of common stock which vest as follows: 8,333 on the date of signing the amendment (September 27, 2011); 8,333 on the first anniversary of such signing date (September 27, 2012); and 8,334 on the second anniversary of such signing date (September 27, 2013).

On September 15, 2011, at the recommendation of the Compensation Committee, the board of directors adopted the Fiscal Year 2012 Performance Share Plan (the “2012 Performance Plan”) covering the Company’s executive officers. Under the 2012 Performance Plan, each executive officer will be awarded common stock in the event the Company achieves target goals during the fiscal year ending June 30, 2012 relating to the total number of connections, total revenues, operating expenses, and operating earnings. Operating earnings is defined as earnings before interest and taxes (after bonus accruals and stock awards) and before non-operating gains or losses. The number of eligible shares to be awarded to the executives is based upon the following weightings: 30% by the total number of connections; 30% by total revenues; 10% by operating expenses; and 30% by operating earnings. No awards would be made under the 2012 Performance Plan if either (i) none of the minimum, threshold performance target goals have been achieved, or (ii) if operating earnings for the 2012 fiscal year are not equal or better than those during the 2011 fiscal year.

Notwithstanding the above description of the 2012 Performance Plan, the executives would receive shares from the Company pursuant to the 2012 Performance Plan only if and to the extent that shares would be available to be issued to the executives under the existing 2011 stock incentive plan or another stock plan that has been approved by the shareholders of the Company in accordance with NASDAQ Listing Rule 5635(c).If there would not be a sufficient number of shares available to be issued to the executives, the Company would pay to the executives an amount of cash equal to the value of those shares not available to be issued to the executives. In such event, the executives would be required to utilize the cash payment, net of any withholding, payroll or other taxes attributable to the cash payment, to purchase shares of common stock of the Company on the open market.

As of September 15, 2011 and through June 27, 2012, there were not sufficient shares available under the existing 2011 stock incentive plan or another stock plan that had been approved by the shareholders of the Company; consequently, the Company may have been required to deliver to the executives an amount of cash equal to the value of shares earned but not available to be issued to the executives. Therefore, in accordance with ASC Topic 718, “Stock Compensation”, this award was accounted for as a liability of the Company through June 27, 2012. On June 28, 2012, the Company’s shareholders approved the 2012 Stock Incentive Plan, which includes sufficient shares for the 2012 Performance Plan. Accordingly, for the fiscal year ended June 30, 2012 the Company recorded stock compensation expense of $197,613 for the vesting of 136,285 shares of Common Stock – 96,201 shares to Mr. Herbert and 40,084 shares to Mr. DeMedio. Final settlement of the award occurred in September 2012.

Pursuant to the Separation Agreement entered into by the Company and Mr. Jensen, Mr. Jensen is not entitled to earn shares under the 2012 Performance Plan, and therefore no award was estimated for Mr. Jensen for the fiscal 2012 year.

On September 5, 2012, at the recommendation of the Compensation Committee, the board of directors adopted the Fiscal Year 2013 Performance Share Plan (the “2013 Performance Plan”) covering the Company’s executive officers. Under the 2013 Performance Plan, each executive officer would be awarded common stock in the event the Company achieves certain performance goals during the fiscal year ended June 30, 2013. The metrics under the 2013 Performance Plan as well as the relative weightings of these metrics are identical to those originally set forth in the 2012 Performance Plan. No awards would be made under the 2013 Performance Plan if either (i) none of the minimum, threshold performance target goals has been achieved, or (ii) if operating earnings for the 2013 fiscal year are not equal or better than those during the 2012 fiscal year.

If all of the target goals are achieved under the 2013 Performance Plan, the executive officers would be awarded shares having the following value: Mr. Herbert – $275,000; and Mr. DeMedio – $100,000. If all of the minimum, threshold performance target goals are achieved, the executive officers would be awarded shares having the following value: Mr. Herbert – $75,000; and Mr. DeMedio – $25,000. If all of the maximum, distinguished performance target goals are achieved, the executive officers would be awarded shares having the following value: Mr. Herbert – $550,000; and Mr. DeMedio – $200,000. If the actual results for the fiscal year are less than the target goals (but greater than the minimum, threshold performance target goals), each executive would be awarded a lesser pro rata number of shares from the target goal, if actual results are between target and maximum, then a pro rata number of shares between target and maximum is earned, and if actual results are above maximum (distinguished) than pro rata shares above maximum is earned.

As of September 5, 2012 and through June 20, 2013, there were not sufficient shares for the maximum awards available under the existing 2012 stock incentive plan or another stock plan that had been approved by the shareholders of the Company; consequently, the Company may have been required to deliver to the executives an amount of cash equal to the value of shares earned but not available to be issued to the executives. Therefore, in accordance with ASC Topic 718, “Stock Compensation”, this award was accounted for as a liability of the Company through June 20, 2013. On June 21, 2013, the Company’s shareholders approved the 2013 Stock Incentive Plan, which includes sufficient shares for the 2013 Performance Plan. Accordingly, for the fiscal year ended June 30, 2013, the Company recorded stock compensation expense of $19,167 for the vesting of 11,016 shares of Common Stock – 8,142 shares to Mr. Herbert and 2,874 shares to Mr. DeMedio. Final settlement of the award occurred in September 2013.

On November 7, 2013, at the recommendation of the Compensation Committee, the Board of Directors approved a stock bonus to the Company’s Chief Financial Officer (“CFO”). The CFO was awarded 21,000 vested shares of common stock of the Company as a bonus in recognition of his performance during the 2013 fiscal year. For the year ended June 30, 2014, $38,220 was recorded as expense on account of the stock bonus under the 2012 Stock Incentive Plan.

On November 7, 2013, at the recommendation of the Compensation Committee, the Board of Directors approved the Fiscal Year 2014 Long-Term Stock Incentive Plan (the “2014 LTI Stock Plan”). The 2014 LTI Stock Plan provides that each executive officer would be awarded shares of common stock in the event that certain metrics relating to the Company’s 2014 fiscal year would result in specified ranges of year-over-year percentage growth. At the time of the establishment of the 2014 LTI Stock Plan, the Compensation Committee believed that the attainment of the target goals under the plan would represent a significant achievement for management, and were designed to stretch the Company’s and management’s performance during the fiscal year.

If none of the minimum threshold year-over-year percentage target goals are achieved, the executive officers would not be awarded any shares. If all of the year-over-year percentage target goals are achieved, the executive officers would be awarded shares having the following value: Chief Executive Officer (“CEO”) – $341,277 (100% of base salary); and CFO – $175,698 (75% of base salary). If all of the maximum distinguished year-over-year percentage target goals are achieved, the executive officers would be awarded shares having the following value: CEO – $682,554 (200% of base salary); and CFO – $351,396 (150% of base salary). Assuming the minimum threshold year-over-year percentage target goal would be achieved for a particular metric, the number of shares to be awarded for that metric would be determined on a pro rata basis, provided that the award would not exceed the maximum distinguished award for that metric. The shares awarded under the 2014 LTI Stock Plan would vest over a three year period following issuance as follows: one-third on the first anniversary; one-third on the second anniversary; and one-third on the third anniversary. For the fiscal year ended June 30, 2014, the Company recorded stock compensation expense of $71,963 for the vesting of 55,810 shares of Common Stock – 36,649 shares to Mr. Herbert and 19,161 shares to Mr. DeMedio on account of the 2014 LTI Stock Plan under the 2012 Stock Incentive Plan.

During the years ended June 30, 2014, 2013 and 2012, and as permitted under their employment agreements, executive officers cancelled an aggregate of 49,311, 64,847, and 38,749 shares of Common Stock, respectively, in order to satisfy an aggregate of $89,020, $121,052, and $51,381, respectively, of payroll tax withholding obligations related to shares of Common Stock which vested during the 2013 through 2014 fiscal years.

During June 2011, the Board of Directors accepted the recommendation of the Compensation Committee that each non-employee Director serving as of June 30, 2011 receive a stock award of 10,000 shares of Common Stock under the 2010 Stock Incentive Plan valued at $2.22 per share. A total of 50,000 shares of Common Stock were awarded, and the shares vest as follows: 16,665 on June 30, 2011; 16,665 on June 30, 2012; and 16,670 on June 30, 2013. In February 2012, a non-employee member of the Board of Directors forfeited and returned to the Company 6,667 and 3,333 shares of Common Stock, respectively, awarded under this grant in June 2011. As of June 30, 2012, 29,998 shares, net, have vested and been issued. In addition, due to the February 2012 forfeiture and return and changes in the composition of the Board of Directors as approved by shareholders at the Company’s annual meeting of shareholders on June 28, 2012, as of June 30, 2012, 10,002 shares of Common Stock remain reserved for future issuance and 10,000 shares will not vest under this June 2011 grant. As of June 30, 2013, 39,999 shares vested under this award and no shares remain unvested.

During March 2012, the Board of Directors accepted the recommendation of the Compensation Committee that each of the three non-employee Directors appointed to the Board in January 2012 receive a stock award of 10,000 shares of Common Stock under the 2010 Stock Incentive Plan valued at $0.94 per share. A total of 30,000 shares of Common Stock were awarded, and the shares vest as follows: 9,999 on April 1, 2012; 9,999 on April 1, 2013; and, 10,002 on April 1, 2014. Due to changes in the composition of the Board of Directors as approved by shareholders at the Company’s annual meeting of shareholders on June 28, 2012 and the resignation of a member of the Board of Directors in February 2014, as of June 30, 2014 19,999 shares vested under this award, 10,001 shares will not vest, and no shares remain unvested.

In July 2012, the Board of Directors accepted the recommendation of the Compensation Committee that each of the three non-employee Directors who joined the Board after March 31, 2012 receive a stock award of 10,000 shares of Common Stock. Under the 2011 Stock Incentive Plan (the “2011 Plan”) 30,000 shares of Common Stock were awarded with a grant date fair value of $1.45 per share, and vest as follows: 9,999 on August 10, 2012; 9,999 on August 10, 2013; and, 10,002 on August 10, 2014. As of June 30, 2014, 19,998 shares vested and 10,002 shares of Common Stock remain reserved for future issuance under this July 2012 grant.

During the years ended June 30, 2014, 2013, and 2012 certain Directors elected to receive compensation for service on the Company’s Board of Directors in Common Stock of the Company. For the years ended June 30, 2014, 2013, and 2012 the Company issued 75,632, 88,594, and 2,299 shares of Common Stock and recorded $140,000, $157,500, and $3,333 of expense, respectively, for this director compensation. The Company also issued to the lead independent director 37,287, 23,248, and 19,175 shares of common stock attributable to his service as lead independent director during the years ended June 30, 2014, 2013, and 2012, respectively.

As of June 30, 2014, the Company had reserved shares of Common Stock for future issuance for the following:


Exercise of Common Stock Warrants			4,309,000
Conversions of Preferred Stock and cumulative Preferred Stock dividends			98,197
Issuance under 2012 Stock Incentive Plan			31,484
Issuance under 2013 Stock Incentive Plan			500,000
Issuance under 2014 Stock Option Incentive Plan			750,000
Issuance to former Chief Executive Officer upon the occurrence of a USA Transaction			140,000
Total shares reserved for future issuance			5,828,681

A summary of the status of the Company’s nonvested common shares as of June 30, 2014, 2013, and 2012, and changes during the years then ended is presented below:


				Weighted-Average
				Grant-Date
	Shares			Fair Value
Nonvested Shares
Nonvested at June 30, 2011		187,335		$	2.32
Granted		473,285			1.58
Vested		(380,282	)		1.73
Forfeited due to Separation Agreement		(91,667	)		2.00
Forfeited, Director changes		(16,668	)		1.71
Nonvested at June 30, 2012		172,003		$	1.82
Granted		156,429			1.45
Vested		(204,587	)		1.72
Forfeited, Employee shares not earned		(26,699	)		1.52
Nonvested at June 30, 2013		97,146		$	1.52
Granted		10,000			2.17
Vested		(55,001	)		1.62
Forfeited, Director changes		(3,334	)		0.94
Forfeited, Employee shares not earned		(5,000	)		1.52
Nonvested at June 30, 2014		43,811		$	1.59

The 43,811 nonvested shares of Common Stock as of June 30, 2014 were granted under the 2011 and 2012 stock incentive plans and relate to employment agreements, other employee grants, and non-employee Board of Director grants. A discussion of assumptions used in calculating the number of shares and weighted-average grant date fair value is included above in Note 12.

COMMON STOCK WARRANTS AND OPTIONS

12 Months Ended

Jun. 30, 2014

Common Stock Warrants and Options [Abstract]

COMMON STOCK WARRANTS AND OPTIONS

13. COMMON STOCK WARRANTS AND OPTIONS

COMMON STOCK WARRANTS

All Common Stock warrants outstanding as of June 30, 2014 were exercisable. The following table shows exercise prices and expiration dates for warrants outstanding as of June 30, 2014:


	Exercise
Warrants	Price			Expiration
Outstanding	Per Share			Date
4,264,000		$	2.6058	September 18, 2016
45,000		$	2.10	December 31, 2017
4,309,000

Common Stock Warrant activity for the years ended June 30, 2014, 2013, and 2012 was as follows:


	Warrants
Outstanding at June 30, 2011		15,567,199
Issued		-
Exercised		(7,317	)
Expired		(7,514,263	)
Outstanding at June 30, 2012		8,045,619
Issued		45,000
Exercised		(399,597	)
Expired		(329,314	)
Outstanding at June 30, 2013		7,361,708
Issued		-
Exercised		(2,090,226	)
Expired		(962,482	)
Outstanding at June 30, 2014		4,309,000

In conjunction with an October 17, 2007 Securities Purchase Agreement, the Company issued warrants to purchase up to 17,532 shares of the Company’s Common Stock at $7.70 per share at any time through October 17, 2012 to the broker dealer who acted as the exclusive placement agent in the transaction. The warrants under this agreement expired unexercised.

In connection with a Securities Purchase Agreement with S.A.C. Capital Associates, LLC (“SAC”) entered into by the Company on March 14, 2007, the Company issued warrants to purchase 833,333 shares of Common Stock, exercisable at $6.40 per share. As a result of the adjustment provisions contained in the warrant, as of June 30, 2009, the original warrants to purchase 833,333 shares of Common Stock at $6.40 per share had changed to warrants to purchase 903,955 shares of Common Stock at $5.90 per share. The warrants were exercisable at any time through September 14, 2013 and expired unexercised.

On August 7, 2009, in conjunction with a rights offering (the “2009 Rights Offering”), the Company issued warrants to purchase 7,285,792 shares of Common Stock, exercisable at $2.20 per share at any time prior to December 31, 2011. The warrants commenced trading on August 7, 2009, on The NASDAQ Global Market under the symbol USATW. During the years ended June 30, 2012 and 2011, 4,550 and 376,355 USATW warrants were exercised at $2.20 per share resulting in the issuance of 4,550 and 376,355 shares of Common Stock, generating cash proceeds of $10,010 and $827,981, respectively. 6,904,887 of these warrants expired unexercised on December 31, 2011. Additionally, the Company issued each of the two dealer managers warrants to purchase 145,716 shares of Common Stock that were exercisable at $2.20 per share at any time prior to August 6, 2012. The dealer manager warrants expired unexercised in August 2012.

On May 12, 2010, in conjunction with a public offering (the “2010 Public Offering”), the Company issued warrants to purchase 2,753,454 shares of Common Stock, exercisable at $1.13 per share at any time prior to December 31, 2013. The warrants commenced trading on May 24, 2010 on The NASDAQ Global Market under the symbol USATZ. During the years ended June 30, 2014, 2013 and 2012, 2,090,226, 369,287 and 0 USATZ warrants were exercised at $1.13 per share for cash proceeds of $2,361,956, $417,294 and $0, respectively. 58,527 shares of Common Stock, exercisable at $1.13 per share expired unexercised on December 31, 2013.

On July 7, 2010, in conjunction with a rights offering (the “2010 Rights Offering”), the Company issued USATZ warrants to purchase 261,953 shares of Common Stock, exercisable at $1.13 per share at any time prior to December 31, 2013. During the year ended June 30, 2011 all of these warrants were exercised at $1.13 per share for cash proceeds of $296,007.

Additionally, the Company issued to Source Capital Group (“Source”), placement agent of the 2010 Public Offering and the 2010 Rights Offering, warrants to purchase 165,207 and 15,717 shares of Common Stock, exercisable at $1.13 per share at any time prior to May 12, and July 7, 2013, respectively. During the years ended June 30, 2013, 2012 and 2011 Source elected cashless exercises of 36,186, 2,767 and 127,497 warrants resulting in the issuance of 17,094, 990 and 83,472 shares of Common Stock, respectively. During the year ended June 30, 2013, 13,216 shares of Common Stock were issued for warrants exercised at $1.13 per share for cash proceeds of $14,934. Warrants for the issuance of up to 1,258 shares of Common Stock expired unexercised in May 2013.

On March 17, 2011, in conjunction with a private placement offering (the “2011 Private Placement Offering”), the Company issued warrants to purchase up to 3,900,000 shares of Common Stock, exercisable at $2.6058 per share. Additionally, the Company issued the placement agent of the 2011 Private Placement Offering warrants to purchase 364,000 shares of common stock at $2.6058 per share. The 4,264,000 warrants are exercisable from September 18, 2011 through September 18, 2016. As of June 30, 2014, no warrants have been exercised under this offering.

The 3,900,000 warrants issued under the 2011 Private Placement Offering to the buyers contain a provision that if a Fundamental Transaction occurs, notably a change in control, the warrant holder may require the Company to pay the Black-Scholes calculated value of the then unexercised warrant to the warrant holder in cash. The fair value of the warrants was estimated, and the Company recorded a warrant liability in its Consolidated Balance Sheet of $585,209 and $650,638 at June 30, 2014 and 2013, respectively (see Note 9).

In conjunction with the Loan and Security agreement (Note 7) and as a condition of the Bank entering into the First Amendment, the Company issued to the Bank warrants to purchase up to 45,000 shares of common stock of the Company. The warrants are exercisable at any time prior to December 31, 2017 at an exercise price of $2.10 per share. Upon the issuance of the 45,000 shares of common stock, the fair value of the warrants is $55,962 using a Black Scholes model, which was recorded as prepaid interest and included in other assets on the Consolidated Balance Sheet, and is being amortized as non-cash interest expense over the remaining term of the Line of Credit as amended in January 2013. Non-cash interest of $2,095 and $53,867 has been recognized for the years ended June 30, 2014 and 2013. As of June 30, 2014 none of these warrants has been exercised.

STOCK OPTIONS

The Company estimates the grant date fair value of the stock options it grants using a Black-Scholes valuation model. The Company’s assumption for expected volatility is based on its historical volatility data related to market trading of its own common stock. The Company bases its assumptions for expected life of the new stock option grants on the life of the option granted, and if relevant, its analysis of the historical exercise patterns of its stock options. The dividend yield assumption is based on dividends expected to be paid over the expected life of the stock option. The risk-free interest rate assumption is determined by using the U.S. Treasury rates of the same period as the expected option term of each stock option.

The weighted-average fair value of options granted during the fiscal year ended June 30, 2014 was $1.49. There were no options granted during the fiscal years ended June 30, 2013 and 2012. The fair value of options granted during the fiscal year ended June 30, 2014 was estimated at the grant date using the following weighted average assumptions:


	Year ended
	June 30, 2014
Expected volatility		79	%
Expected life	7 years
Expected dividends		0.00	%
Risk-free interest rate		2.22	%

Common Stock Option activity during the years ended June 30, 2014, 2013, and 2012 was as follows:

						Weighted-
				Exercise		Average
	Options			Price		Exercise
	Outstanding			Per Share		Price

Outstanding and exercisable at June 30, 2011		90,666		$	7.50-8	$	7.53
Granted		-			-		-
Expired		(45,333	)	$	7.50-8	$	7.53
Outstanding and exercisable at June 30, 2012		45,333		$	7.50-8	$	7.53
Granted		-			-		-
Expired		(45,333	)	$	7.50-8	$	7.53
Outstanding and exercisable at June 30, 2013		-		$	-	$	-
Granted		120,000		$	2.05	$	2.05
Exercised/vested		-		$	-	$	-
Expired		-		$	-	$	-
Outstanding at June 30, 2014		120,000		$	2.05	$	2.05

On June 18, 2014, the shareholders of the Company approved the 2014 Stock Option Incentive Plan (the “2014 Option Plan”). Under this plan, 750,000 of stock options may be granted to officers, directors or employees of the Company. For the year ended June 30, 2014, the Board of Directors of the Company approved 20,000 options to each of the six non-employee directors. The options vest as follows: one-third one year after the grant date (June 19, 2015), one-third on June 19, 2016 and one-third on June 19, 2017.

The following table shows exercisable options, exercise prices, the weighted average remaining contractual life and the aggregate intrinsic value for options outstanding as of June 30, 2014:


					Weighted Average
Options	Options		Exercise Price Per		Remaining Life		Remaining Life		Intrinsic Value-
Outstanding	Exercisable		Share		Outstanding		Exercisable		Outstanding		Exercisable
120,000		-	$	2.05		6.97		-		-		-
120,000		-				6.97		-		-		-

RETIREMENT PLAN	12 Months Ended
RETIREMENT PLAN	Jun. 30, 2014
Compensation and Retirement Disclosure [Abstract]
RETIREMENT PLAN	14. RETIREMENT PLAN The Company’s 401(k) Plan (the “Retirement Plan”) allows employees who have completed six months of service to make voluntary contributions up to a maximum of 100% of their annual compensation, as defined in the Retirement Plan. The Company may, in its discretion, make a matching contribution, a profit sharing contribution, a qualified non-elective contribution, and/or a safe harbor 401(k) contribution to the Retirement Plan. The Company must make an annual election, at the beginning of the plan year, as to whether it will make a safe harbor contribution to the plan. In fiscal years 2014, 2013 and 2012, the Company elected and made a safe harbor matching contributions of 100% of the participant’s first 3% and 50% of the next 2% of compensation deferred into the Retirement Plan. The Company’s safe harbor contributions for the years ended June 30, 2014, 2013 and 2012 approximated $168,000, $176,000 and $140,000, respectively.

RELATED PARTY TRANSACTIONS	12 Months Ended
RELATED PARTY TRANSACTIONS	Jun. 30, 2014
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	15. RELATED PARTY TRANSACTIONS There were no related party transactions during the years ended June 30, 2014 and 2013. During the year ended June 30, 2012, the Company incurred approximately $744,000 in connection with legal services provided by the law firm of a member of the Company’s Board of Directors. As of July 2012 this person was no longer a Director.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References + Details

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Jun. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

16. COMMITMENTS AND CONTINGENCIES

LEASE COMMITMENTS

On June 26, 2014, the Company and Varilease Finance, Inc. (“Varilease”), entered into six Sale Leaseback Agreements (the “Sale Leaseback Agreements” or a “Sale Leaseback Agreement”) pursuant to which Varilease purchased ePort equipment owned by the Company and used by the Company in its JumpStart program. If all of the ePort equipment described in the Sale Leaseback Agreements is purchased by Varilease, the aggregate purchase price to be received by the Company would be approximately $8,000,000.

Concurrently with entering into the Sale Leaseback Agreements, the Company and Varilease entered into six Schedules (the “Schedules” or a “Schedule”) each corresponding to a Sale Leaseback Agreement. The Company and Varilease also entered into a Master Lease Agreement (the “Master Lease Agreement”) which is incorporated by reference into each Schedule. Each Schedule (including the Master Lease Agreement) sets forth the terms and conditions pursuant to which Varilease would lease to the Company the ePort equipment to be purchased by Varilease from the Company pursuant to the corresponding Sale Leaseback Agreement. Each Schedule provides for a 36-month base lease term and specifies the base monthly rental for the equipment described in the Schedule. During the lease term, all of the costs, expenses and liabilities associated with the equipment are to be borne by the Company, and the Company is entitled to the unlimited use of the equipment.

At the completion of the base lease term provided in each Schedule, the Company will have, among other things, the option to either purchase the equipment described in the Schedule for a price to be agreed upon by the Company and Varilease, or extend the lease term of the Schedule for an additional twelve months at the base monthly rental, at the conclusion of which all of the right, title and interest of Varilease in the ePort equipment would pass to the Company.

The Master Lease Agreement includes customary events of default, including non-payment by the Company of the monthly rental or other charges due under any Schedule. The Master Lease Agreement provides that in the event of the declaration by Varilease of a default, the Company would pay to Varilease, among other things, any unpaid amount due on or before the declaration of default plus liquidated damages equal to the Stipulated Loss Value of the equipment. The Stipulated Loss Value of the equipment is an amount equal to 110% of the Company’s original cost for such equipment less 1.25% of such cost for each month elapsed during the lease term through the declaration of default.

On June 27, 2014, Varilease completed the purchase from the Company of the ePort equipment described in two of the Sale Leaseback Agreements for an aggregate of $2,995,095, and pursuant to the corresponding Schedules, the Company is obligated to pay to Varilease a base monthly rental of $82,365 for this equipment during the 36-month lease term. The Company is accounting for the Sale Leaseback as an operating lease. The remaining Sale Leaseback Agreements as described above were completed subsequent to June 30, 2014 (see Note 17).

Upon the completion of the sale under the first two agreements in June 2014, the Company computed a gain on the sale of its ePort equipment in the amount of $1,152,207 as follows:


Rental equipment sold, cost	$	1,918,920
Rental equipment sold, accumulated depreciation upon sale		(76,032	)
Rental equipment sold, net book value		1,842,888
Proceeds from Sale		2,995,095
Gain on sale of rental equipment	$	1,152,207

In accordance with the FASB topic ASC 840-40, “Sale Leaseback Transactions”, any gain shall be deferred and shall be amortized in proportion to the related gross rental charged to expense over the lease term. The computed gain on the sale will be recognized ratably over the 36 month term and charged as a reduction to the Company’s JumpStart rent expense included in costs of services in the Company’s consolidated statement of operations. For the year ended June 30, 2014 the Company recognized $9,522 of the gain and the deferred gain amounted to $1,142,685 as of June 30, 2014. The Company intends to utilize the proceeds from the sale of the equipment for working capital purposes.

Other lease commitments include leases for its operations from various facilities. The Company leases 17,249 square feet of space located in Malvern, Pennsylvania for its principal executive office and used for general administrative functions, sales activities, product development, and customer support. In November 2010, the Company entered into an amended lease of its principal executive office in Malvern, Pennsylvania, which extended the lease term from December 31, 2010 to April 2016. The amendment includes rental payments of approximately $29,000 to $32,000 as well as a four month period of no rent payments and leasehold improvements of approximately $195,000. The straight-lined rent expense for this office is approximately $25,000 per month for the duration of the lease.

The Company leases space in Malvern, Pennsylvania for its product warehousing and shipping support. In October 2011, the Company amended the lease of its operations site in Malvern, Pennsylvania, to extend the lease term from December 31, 2011 to December 31, 2012. The amendment includes monthly rental payments of approximately $15,100 to $16,200. Beginning in January 2012 the straight-lined rent expense for this office is approximately $15,600 per month for the duration of the amended lease period. In November 2012, the Company amended and extended this lease to January 31, 2013 with monthly rent of $16,721 for January 2013.

In November 2012, the Company entered into a lease for a new operations site in Malvern, Pennsylvania to replace its existing site and lease. The lease term for the 11,250 square feet of space is January 1, 2013 through February 29, 2016. The lease includes monthly rental payments from $4,406 to $4,678 as well as a two month period of no rent payments. Beginning in January 2013 the straight-lined rent expense for this operations site is approximately $4,300 per month for the duration of the lease period.

Rent expense under operating leases was approximately $372,000, $432,000, and $502,000 during the years ended June 30, 2014, 2013, and 2012, respectively.

Future minimum lease payments subsequent to June 30, 2014 under non-cancellable operating leases and capital leases are as follows:


	Operating Leases		Other Operating		Total Operating		Capital
	from Sale Leaseback		Leases		Leases		Leases

2015	$	988,381	$	435,578	$	1,423,959	$	198,416
2016		988,381		361,927		1,350,308		111,647
2017		988,381		810		989,191		92,261
2018		-		-		-		60,585
2019		-		-		-		23,362
Thereafter		-		-		-		-
Total minimum lease payments	$	2,965,143	$	798,315	$	3,763,458	$	486,271
Less amount representing interest								71,745
Present value of net minimum lease payments								414,526
Less current obligations under capital leases								164,660
Obligations under capital leases, less current portion							$	249,866

EMPLOYMENT AGREEMENTS

On November 30, 2011, the Company and Mr. Herbert entered into an Amended and Restated Employment and Non-Competition Agreement that replaced his prior employment agreement with the Company. The agreement provides for an initial term continuing through January 1, 2013, which is automatically renewed for consecutive one year periods unless terminated by either Mr. Herbert or the Company upon at least ninety days’ notice prior to the end of the initial term or any one year extension thereof.

The agreement increased Mr. Herbert’s base salary to $341,227, which is equal to the base salary under his prior employment agreement plus an amount equal to the cost to the Company of the car allowance and supplemental disability insurance coverage provided to him under his prior employment agreement; and, the car allowance and supplemental disability insurance coverage that had been provided to him under his prior employment agreement, which have been discontinued. He is eligible for a cash bonus as described in the next sentence. The agreement provides for the payment to Mr. Herbert of a cash bonus of $30,000 if the Company would achieve all of the minimum threshold performance target goals under the Fiscal Year 2012 Executive Performance Plan, of $50,000 if the Company would achieve all of the target performance goals under the plan, and of $75,000 if the Company would achieve all of the maximum distinguished performance target goals under the plan.

The Company has agreed to obtain and pay the premiums for a term life insurance policy in the amount of $1,500,000 on the life of Mr. Herbert while he is employed by the Company. Mr. Herbert has the right to designate the beneficiary of the policy. On September 5, 2012, the Company discontinued this policy and Mr. Herbert’s base salary was increased by the amount equal to the annual premiums being paid by the Company for the life insurance policy.

The agreement provides that if Mr. Herbert would terminate his employment with the Company for good reason (as defined in the agreement), or if the Company would terminate his employment without cause (as defined in the agreement), or if the Company would provide Mr. Herbert with a notice of non-renewal of his employment agreement, then the Company would pay to him a lump sum equal to two times his base salary on or before the termination of his employment. The term good reason as defined in the agreement, includes: (A) a material breach of the terms of the agreement by the Company; (B) the assignment by the Company to Mr. Herbert of duties in any way materially inconsistent with his authorities, duties, or responsibilities, or a material reduction or alteration in the nature or status of his authority, duties, or responsibilities as the Chief Executive Officer of the Company; (C) the Company reduces Mr. Herbert’s annual base salary; or (D) a material reduction by the Company in the kind or level of employee benefits to which Mr. Herbert is entitled immediately prior to such reduction with the result that his overall benefit package is significantly reduced unless such failure to continue a plan, policy, practice or arrangement pertains to all plan participants generally. As a condition to Mr. Herbert receiving any payments or benefits upon the termination of his employment for good reason, Mr. Herbert shall have executed and delivered (and not revoked) a release of any and all claims, suits, or causes of action against the Company and its affiliates in form reasonably acceptable to the Company.

The agreement also provides that as a condition of the consummation of a USA Transaction (as defined in the agreement), the successor to the Company’s business or assets would agree to assume and perform Mr. Herbert’s employment agreement. If any such successor would not do so, Mr. Herbert’s employment would terminate on the date of consummation of the USA Transaction, and the Company would pay to Mr. Herbert a lump sum equal to two times his base salary on or before the termination of his employment.

On April 12, 2005, Mr. DeMedio and the Company entered into an employment agreement pursuant to which he was employed as the Chief Financial Officer of the Company. In the event that a USA Transaction shall occur, then Mr. DeMedio has the right to terminate his agreement upon thirty days’ notice to the Company.

On September 24, 2009, the Company agreed to obtain and pay the premiums for a term life insurance policy in the amount of $750,000 on the life of Mr. DeMedio while he is employed by the Company. Mr. DeMedio has the right to designate the beneficiary of the policy. The Company has agreed to obtain and pay the premiums for a supplemental long term disability policy covering Mr. DeMedio over and above the existing long-term group disability plan of the Company. If he shall become disabled while employed by the Company, the policy would provide for monthly disability coverage of up to 65% of his monthly base compensation payable to age 65 or death. If Mr. DeMedio’s employment with the Company would be terminated without cause, the Company has agreed, at its cost, to continue to provide Mr. DeMedio with health insurance benefits substantially similar to those which he is receiving immediately prior to the date of termination for a one year period following such termination.

On April 14, 2011, the Company and Mr. DeMedio entered into an additional amendment to the employment agreement. The agreement extended the term of Mr. DeMedio’s employment with the Company from June 30, 2011 until June 30, 2014, and will automatically continue from year to year thereafter unless terminated as of the end of the original term or any such one year renewal period by the Company or Mr. DeMedio by at least ninety days’ notice. In connection with the amendment, Mr. DeMedio was issued 25,000 shares of common stock under the 2010 Stock Incentive Plan which vested as follows: 8,333 on April 14, 2011; 8,333 on April 14, 2012; and 8,334 on April 14, 2013.

Effective July 1, 2011, Mr. DeMedio’s annual base salary was increased to $220,000.

On September 27, 2011, the Company and Mr. DeMedio entered into another amendment to his employment agreement pursuant to which Mr. DeMedio was granted an aggregate of 25,000 shares of common stock as a bonus for his performance during the last six months of the 2011 fiscal year which vest as follows: 8,333 on the date of signing the amendment; 8,333 on the first anniversary of such signing date; and 8,334 on the second anniversary of such signing date. Mr. DeMedio also agreed that the premiums for his supplemental long term disability policy being paid by the Company would now be included in his wages and be taxable to him.

On September 5, 2012, the Company discontinued Mr. DeMedio’s car allowance, supplemental disability insurance policy and life insurance policy, and the amount of his base salary was increased by the annual cost of these benefits.

On November 7, 2013, the Company and Mr. DeMedio, entered into an amendment to the employment agreement. The amendment to Mr. DeMedio’s employment agreement (the “DeMedio Amendment”) provides that (i) if following a change in control of the Company (as defined in the DeMedio Amendment) Mr. DeMedio would terminate his employment with the Company for good reason (as defined in the DeMedio Amendment), or (ii) if the Company would terminate his employment at any time without cause (as defined in the DeMedio Amendment), or (iii) if the Company would provide Mr. DeMedio with a notice of non-renewal of his employment agreement, then the Company would pay to him a lump sum equal to one times his base salary on or before the termination of his employment and all restricted stock awards and stock options would become vested as of the date of termination.

LITIGATION

From time to time, the Company is involved in various litigation proceedings arising during the normal course of business which, in the opinion of the management of the Company, will not have a material effect on the Company’s financial position and results of operations or cash flows.

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Jun. 30, 2014
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	17. SUBSEQUENT EVENTS SALE LEASEBACK In July, 2014, Varilease completed the purchase from the Company of the ePort equipment described in the last four of the Sale Leaseback Agreements for an aggregate of $4,993,879, and pursuant to the corresponding Schedules, the Company is obligated to pay to Varilease a base monthly rental of $137,731 for this equipment during the 36-month lease term. The Company is accounting for the Sale Leaseback as an operating lease. Upon the completion of the sale under these agreements in July 2014, the Company computed a gain on the sale of its ePort equipment in the amount of approximately $1,450,000. In accordance with the FASB topic ASC 840-40, “Sale Leaseback Transactions”, any gain shall be deferred and shall be amortized in proportion to the related gross rental charged to expense over the lease term. The computed profit on the sale will be recognized ratably over the 36 month term and charged as a reduction to the Company’s JumpStart rent expense included in costs of services in the Company’s consolidated statement of operations. The Company intends to utilize the proceeds from the sale of the equipment for working capital purposes and may also explore and consider utilizing a portion of these proceeds for other purposes. 2015 INCENTIVE PLANS On August 28, 2014, at the recommendation of the Compensation Committee of the Board of Directors of the Company, the Board of Directors approved the Fiscal Year 2015 Short-Term Incentive Plan (the “2015 STI Plan”) and the Fiscal Year 2015 Long-Term Stock Incentive Plan (the “2015 LTI Stock Plan”) covering Stephen P. Herbert, Chairman and Chief Executive Officer, and David M. DeMedio, Chief Financial Officer. Upon the recommendation of the Compensation Committee, the Board also approved an award of options to purchase common stock under the Company’s 2014 Stock Option Incentive Plan to each of Messrs. Herbert and DeMedio. The 2015 STI Plan provides that each executive officer would earn a cash bonus in the event that the Company achieved during the 2015 fiscal year certain annual financial goals (80% weighting) and certain annual specific performance goals relating to the executive officer which are to be established by the Compensation Committee (20% weighting). The annual financial goals are total revenues (30% weighting), cash generated from operations (30% weighting), and non-GAAP net income (40% weighting). If none of the minimum threshold target goals are achieved, the executive officers would not earn a cash bonus. If all of the target goals are achieved, the executive officers would earn a cash bonus as follows: Mr. Herbert – $136,500 (40% of base salary); and Mr. DeMedio – $59,469 (25% of base salary). If all of the maximum distinguished target goals are achieved, the executive officers would earn a cash bonus as follows: Mr. Herbert – $273,000 (80% of base salary); and Mr. DeMedio – $118,938 (50% of base salary). Assuming the minimum threshold target goal would be achieved for a particular metric, the amount of the cash bonus to be earned would be determined on a pro rata basis, provided that the bonus would not exceed the maximum distinguished award for that metric. The 2015 LTI Stock Plan provides that each executive officer would be awarded shares of common stock of the Company in the event that certain metrics relating to the Company’s 2015 fiscal year would result in specified ranges of year-over-year percentage growth. The metrics are total number of connections as of June 30, 2015 as compared to total number of connections as of June 30, 2014 (50% weighting) and adjusted EBITDA earned during the 2015 fiscal year as compared to adjusted EBITDA earned during the 2014 fiscal year (50% weighting). If none of the minimum threshold year-over-year percentage target goals are achieved, the executive officers would not be awarded any shares. If all of the year-over-year percentage target goals are achieved, the executive officers would be awarded shares having the following value: Stephen P. Herbert – $341,227 (100% of base salary); and David M. DeMedio – $178,406 (75% of base salary). If all of the maximum distinguished year-over-year percentage target goals are achieved, the executive officers would be awarded shares having the following value: Mr. Herbert – $682,454 (200% of base salary); and Mr. DeMedio – $356,812 (150% of base salary). Assuming the minimum threshold year-over-year percentage target goal would be achieved for a particular metric, the number of shares to be awarded for that metric would be determined on a pro rata basis, provided that the award would not exceed the maximum distinguished award for that metric. The shares awarded under the 2015 LTI Stock Plan would vest as follows: one-third at the time of issuance; one-third on the first anniversary of issuance; and one-third on the second anniversary of issuance. COMMON STOCK OPTIONS Mr. Herbert was awarded incentive stock options intended to qualify under Section 422 of the Internal Revenue Code of 1986, as amended (the “Code), to purchase up to 55,555 shares at an exercise price of $1.80 per share. The options vest on September 1, 2015, and expire if not exercised prior to September 1, 2021. Mr. Herbert was also awarded non-qualified stock options to purchase up to 150,000 shares at an exercise price of $1.80 per share. The options vest as follows: one-third on September 1, 2015; one-third on September 1, 2016; and one-third on September 1, 2017. The options expire if not exercised prior to September 1, 2021. Mr. DeMedio was awarded incentive stock options intended to qualify under Section 422 of the Code to purchase up to 33,333 shares at an exercise price of $1.80 per share. The options vest on September 1, 2015, and expire if not exercised prior to September 1, 2021. Mr. DeMedio was also awarded non-qualified stock options to purchase up to 90,000 shares at an exercise price of $1.80 per share. The options vest as follows: one-third on September 1, 2015; one-third on September 1, 2016; and one-third on September 1, 2017. The options expire if not exercised prior to September 1, 2021.

VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Jun. 30, 2014

Valuation and Qualifying Accounts [Abstract]

VALUATION AND QUALIFYING ACCOUNTS

SCHEDULE II

USA TECHNOLOGIES, INC.

VALUATION AND QUALIFYING ACCOUNTS

YEARS ENDED JUNE 30, 2014, 2013, AND 2012

						Deductions
						uncollectible
	Balance at		Additions			receivables		Balance
	beginning		charged to			written off, net		at end
ACCOUNTS RECEIVABLE	of period		earnings			of recoveries		of period
June 30, 2014	$	18,000	$	94,000		$	49,000	$	63,000
June 30, 2013	$	25,000	$	69,000		$	76,000	$	18,000
June 30, 2012	$	113,000	$	(46,000	)	$	42,000	$	25,000


	Balance at		Additions		Deductions,		Balance
	beginning		charged to		Shrinkage and		at end
INVENTORY	of period		earnings		obsolescence		of period
June 30, 2014	$	727,000	$	164,000	$	126,000	$	765,000
June 30, 2013	$	712,000	$	135,000	$	120,000	$	727,000
June 30, 2012	$	628,000	$	136,000	$	52,000	$	712,000

ACCOUNTING POLICIES (Policies)	12 Months Ended
ACCOUNTING POLICIES (Policies)	Jun. 30, 2014
Business Description And Accounting Policies [Abstract]
CONSOLIDATION	CONSOLIDATION The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Stitch Networks Corporation (“Stitch”) and USAT Capital Corp LLC (“USAT Capital”). All significant intercompany accounts and transactions have been eliminated in consolidation.
USE OF ESTIMATES	USE OF ESTIMATES The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
CASH EQUIVALENTS	CASH EQUIVALENTS Cash equivalents represent all highly liquid investments with original maturities of three months or less. Cash equivalents are comprised of money market funds. The Company maintains its cash in bank deposit accounts, which may exceed federally insured limits at times. At June 30, 2014 and 2013, none of the cash and cash equivalents of the Company was payable to our customers. Included in accounts receivable are amounts for transactions processed with our card processers for which cash has not been received by the Company and included in accounts payable are amounts for transactions processed with our card processers and due to our customers, which are recorded net of fees due to the Company. Generally, contractual terms require us to remit amounts owed to our customers on a weekly basis.
ACCOUNTS RECEIVABLE	ACCOUNTS RECEIVABLE Accounts receivable are reported at their outstanding unpaid principal balances reduced by an allowance for doubtful accounts. The Company estimates doubtful accounts for accounts receivable and finance receivables based on historical bad debts, factors related to specific customers’ ability to pay and current economic trends. The Company writes off accounts receivable against the allowance when management determines the balance is uncollectible and the Company ceases collection efforts. Management believes that the allowance accrued is adequate to provide for its estimated credit losses.
FINANCE RECEIVABLES	FINANCE RECEIVABLES The Company offers extended payment terms to certain customers for equipment sales under its Quick Start Program. In accordance with the Financial Accounting Standards Board Accounting Standards Codification® (“ASC”) Topic 840, “Leases”, agreements under the Quick Start Program qualify for sales-type lease accounting. Accordingly, the future minimum lease payments are classified as finance receivables in the Company’s consolidated balance sheets. Notes receivable or Quick Start leases are generally for a sixty month term. Finance receivables are carried at their contractual amount and charged off against the allowance for credit losses when management determines that recovery is unlikely and the Company ceases collection efforts. The Company recognizes a portion of the note or lease payments as interest income in the accompanying consolidated financial statements based on the effective interest rate method.
INVENTORY	INVENTORY Inventory consists of finished goods and packaging materials. The Company’s inventory is stated at the lower of cost (average cost basis) or market.
PROPERTY AND EQUIPMENT	PROPERTY AND EQUIPMENT Property and equipment are recorded at cost. Property and equipment are depreciated on the straight-line basis over the estimated useful lives of the related assets. Leasehold improvements are amortized on the straight-line basis over the lesser of the estimated useful life of the asset or the respective lease term.
GOODWILL AND INTANGIBLE ASSETS	GOODWILL AND INTANGIBLE ASSETS Goodwill represents the excess of cost over fair value of the net assets purchased in acquisitions. The Company accounts for goodwill in accordance with ASC 350, “Intangibles – Goodwill and Other”. Under ASC 350, goodwill is not amortized to earnings, but instead is subject to periodic testing for impairment. In September 2011, the FASB issued ASU No. 2011-08 Intangibles – Goodwill and Other: Testing Goodwill for Impairment, which amended guidance to allow the Company to first assess qualitative factors to determine if it is necessary to perform the two-step quantitative impairment test. If after this assessment the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then the two-step impairment test is unnecessary. If after this assessment the Company determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, than the Company will perform the first step of the two-step impairment test. The first step screens for potential impairment, while the second step measures the amount of impairment. The Company uses a quantitative method, including a discounted cash flow analysis to complete the first step in this process. We also give consideration to our market capitalization. Testing for impairment is to be done at least annually and at other times if events or circumstances arise that indicate that impairment may have occurred. The Company has selected April 1 as its annual test date. The Company has concluded there has been no impairment of goodwill as a result of its testing on April 1, 2014, April 1, 2013, and April 1, 2012. The Company trademarks with an indefinite economic life are not being amortized. The trademarks, not subject to amortization, are related to the miser asset group and consist of the following trademarks: 1) VendingMiser, 2) CoolerMiser, 3) PlugMiser and 4) SnackMiser. The Company tests indefinite-lived intangible assets for impairment using a two-step process. The first step screens for potential impairment, while the second step measures the amount of impairment. The Company uses a relief from royalty analysis to complete the first step in this process. Testing for impairment is to be done at least annually and at other times if events or circumstances arise that indicate that impairment may have occurred. The Company has selected April 1 as its annual test date for its indefinite-lived intangible assets. The Company has concluded there has been no impairment during the fiscal years ended June 30, 2014, 2013 and 2012. Patents and trademarks, with an estimated economic life, are carried at cost less accumulated amortization, which is calculated on a straight-line basis over their estimated economic life. The Company reviews intangibles, subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An asset is considered to be impaired when the sum of the undiscounted future net cash flows resulting from the use of the asset and its eventual disposition is less than its carrying amount. The amount of the impairment loss, if any, is measured as the difference between the net book value of the asset and its estimated fair value. As of June 30, 2014 and June 30, 2013, the Company has concluded there has been no impairment of its patents or trademarks that is subject to amortization.
LONG LIVED ASSETS	LONG LIVED ASSETS In accordance with ASC 360, “Impairment or Disposal of Long-Lived Assets”, the Company reviews its definite lived long-lived assets whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If the carrying amount of an asset or group of assets exceeds its net realizable value, the asset will be written down to its fair value. In the period when the plan of sale criteria of ASC 360 are met, definite lived long-lived assets are reported as held for sale, depreciation and amortization cease, and the assets are reported at the lower of carrying value or fair value less costs to sell. The Company has concluded that the carrying amount of definite lived long-lived assets is recoverable as of June 30, 2014 and June 30, 2013.
FAIR VALUE OF FINANCIAL INSTRUMENTS	FAIR VALUE OF FINANCIAL INSTRUMENTS The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2010-06, “Fair Value Measurements and Disclosures (“Topic 820”): Improving Disclosures about Fair Value Measurements.” ASU 2010-06 amends certain disclosure requirements of Subtopic 820-10. This ASU provides additional disclosures for transfers in and out of Levels 1 and 2 and for activity in Level 3. This ASU also clarifies certain other existing disclosure requirements including level of desegregation and disclosures around inputs and valuation techniques. The Company’s financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy. The three levels are as follows: Level 1- Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2- Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). Level 3- Inputs are unobservable and reflect the Company’s assumptions that market participants would use in pricing the asset or liability. The Company develops these inputs based on the best information available. The Company’s financial instruments, principally cash equivalents, accounts receivable, finance receivables, prepaid expenses and other assets, accounts payable and accrued expenses, are carried at cost which approximates fair value due to the short-term maturity of these instruments. The fair value of the Company’s obligations under its long-term debt and credit agreements approximates their carrying value as such instruments are at market rates currently available to the Company.
CONCENTRATION OF CREDIT RISK	CONCENTRATION OF CREDIT RISK Financial instruments that subject the Company to a concentration of credit risk consist principally of cash and cash equivalents and accounts and finance receivables. The Company maintains cash and cash equivalents with various financial institutions. Approximately 22% and 41% of the Company’s trade accounts and finance receivables at June 30, 2014 and 2013, respectively, were concentrated with one customer. Approximately 26%, 37%, and 43% of the Company’s license and transaction processing revenues for the years ended June 30, 2014, 2013, and 2012, respectively, were concentrated with one and two customer(s), respectively: 26%, 26%, and 25%, respectively for each year, with one; and 11%, and 18%, for the years ended June 30, 2013, and 2012, respectively, with another. There was no concentration of equipment sales revenue for the years ended June 30, 2014, 2013, and 2012. The Company’s customers are principally located in the United States.
REVENUE RECOGNITION	REVENUE RECOGNITION Revenue from the sale of equipment is recognized on the terms of freight-on-board shipping point. Activation fee revenue is recognized when the Company’s cashless payment device is initially activated for use on the Company network. Transaction processing revenue is recognized upon the usage of the Company’s cashless payment and control network. License fees for access to the Company’s devices and network services are recognized on a monthly basis. In all cases, revenue is only recognized when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed and determinable, and collection of the resulting receivable is reasonably assured. The Company estimates an allowance for product returns at the date of sale.
EQUIPMENT RENTAL	EQUIPMENT RENTAL The Company offers its customers a rental program for its ePort devices, the JumpStart Program (“JumpStart”). The JumpStart terms are typically 36 months and are cancellable with sixty days written notice. In accordance with ASC 840, “Leases”, the Company classifies the rental agreements as operating leases. For the years ended June 30, 2014, 2013, and 2012, there was approximately $1,032,000, $806,000, and $607,000, respectively, of activation fee revenue related to JumpStart equipment included in equipment sales in the Consolidated Statements of Operations. There was also approximately $13,337,000, $10,193,000, and $6,074,000 of service fee revenue related to JumpStart equipment included in license and transaction fees in the Consolidated Statements of Operations for the years ended June 30, 2014, 2013, and 2012, respectively. Cost for the JumpStart revenues, which consists of depreciation expense on the JumpStart equipment, approximated $4,804,900, $3,171,000, and $1,740,000 for the years ended June 30, 2014, 2013, and 2012, respectively, and was included in cost of services in the Consolidated Statements of Operations. At June 30, 2014 and 2013, approximately, $19,824,000 and $15,685,000, respectively, of ePort equipment utilized by the JumpStart Program was included in property and equipment, net on the Consolidated Balance Sheet (see Note 4).
WARRANTY COSTS	WARRANTY COSTS The Company generally warrants its products for one to three years. Warranty costs are estimated and recorded at the time of sale based on historical warranty experience, if available. These costs are reviewed and adjusted, if necessary, periodically throughout the year.
SHIPPING AND HANDLING	SHIPPING AND HANDLING Shipping and handling fees billed to our customers in connection with sales are recorded as revenue. The costs incurred for shipping and handling of our product are recorded as cost of sales.
RESEARCH AND DEVELOPMENT EXPENSES	RESEARCH AND DEVELOPMENT EXPENSES Research and development expenses are expensed as incurred. Research and development expenses, which are included in selling, general and administrative expenses in the Consolidated Statements of Operations, were approximately $1,018,000, $901,000, and $1,038,000, for the years ended June 30, 2014, 2013, and 2012, respectively. Our research and development initiatives focus on adding features and functionality to our system solutions through the development and utilization of our processing and reporting network and new technology.
ACCOUNTING FOR EQUITY AWARDS	ACCOUNTING FOR EQUITY AWARDS In accordance with ASC 718 the cost of employee services received in exchange for an award of equity instruments is based on the grant-date fair value of the award and allocated over the vesting period of the award. As detailed in Note 12, the Company recorded stock compensation expense of $450,078, $483,740, and $584,487 related to common stock grants and vesting of shares previously granted to employees and directors during the years ended June 30, 2014, 2013, and 2012, respectively. These expenses exclude the Performance Share Plans for the 2014 and 2013 fiscal years (“2014 Plan” and the “2013 Plan”) and the Long-Term Equity Incentive Program (“LTIP” or the “LTIP Program”) covering the Company’s executive officers.
INCOME TAXES	INCOME TAXES The Company follows the provisions of FASB ASC 740, Accounting for Uncertainty in Income Taxes, which provides detailed guidance for the financial statement recognition, measurement and disclosure of uncertain tax positions recognized in the financial statements. Tax positions must meet a “more-likely-than-not” recognition threshold at the effective date to be recognized upon the adoption of ASC 740 and in subsequent periods. Income taxes are computed using the asset and liability method of accounting. Under the asset and liability method, a deferred tax asset or liability is recognized for estimated future tax effects attributable to temporary differences and carryforwards. The measurement of deferred income tax assets is adjusted by a valuation allowance, if necessary, to recognize future tax benefits only to the extent, based on available evidence it is more likely than not such benefits will be realized. The Company recognizes interest and penalties, if any, related to uncertain tax positions in selling, general and administrative expenses. No interest or penalties related to uncertain tax positions were accrued or incurred during the years ended June 30, 2014, 2013, and 2012. The Company files income tax returns in the United States federal jurisdiction and various state jurisdictions. The tax years ended June 30, 2011 through June 30, 2014 remain open to examination by taxing jurisdictions to which the Company are subject. As of June 30, 2014, the Company did not have any income tax examinations in process.
EARNINGS (LOSS) PER COMMON SHARE	EARNINGS (LOSS) PER COMMON SHARE Basic earnings (loss) per share are calculated by dividing income (loss) applicable to common shares by the weighted average common shares outstanding for the period. Diluted earnings per share is calculated by dividing income (loss) applicable to common shares by the weighted average common shares outstanding for the year plus the effect of potential common shares unless such effect is anti-dilutive. For the fiscal year ended June 30, 2014 no exercise of stock purchase warrants (4,309,000); or the conversion of preferred stock (85,936) or cumulative preferred dividends (12,261) was assumed during the fiscal year ended June 30, 2014 because the result would be anti-dilutive. For the fiscal year ended June 30, 2013 exercise of 825,673 stock purchase warrants was assumed to calculate the weighted average common shares outstanding for the year. Exercise of stock purchase warrants (5,212,955) or the conversion of preferred stock (85,847) or cumulative preferred dividends (11,596) was not assumed during the fiscal year ended June 30, 2013 because the result would be anti-dilutive. For the fiscal year ended June 30, 2012 no exercise of stock options (45,333); or stock purchase warrants (8,045,619); or the conversion of preferred stock (4,430) or cumulative preferred dividends (10,932) was assumed during the fiscal year ended June 30, 2012 because the result would be anti-dilutive.
RECENT ACCOUNTING PRONOUCEMENTS	RECENT ACCOUNTING PRONOUCEMENTS The Company is evaluating whether the effects of the following recent accounting pronouncements or any other recently issued, but not yet effective accounting standards will have a material effect on the Company’s consolidated financial position, results of operations, or cash flows. In July 2013, the Financial Accounting Standards Board issued ASU 2013-11 Income Taxes (Topic 740): Presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. This will be effective for the Company beginning with the fiscal year ending June 30, 2015. In May 2014, the Financial Accounting Standards Board issued ASU 2014-09 Revenue from Contracts with Customers (Topic 606). This will be effective for the Company beginning with the fiscal year ending June 30, 2018. In June 2014, the Financial Accounting Standards Board issued ASU 2014-12 Compensation – Stock Compensation (Topic 718): Accounting for share-based payments when the terms of the award provide that a performance target could be achieved after the requisite service period. This will be effective for the Company beginning with the fiscal year ending June 30, 2017.

FINANCE RECEIVABLES (Tables)

12 Months Ended

Jun. 30, 2014

Receivables [Abstract]

Schedule of finance receivables


	June 30,		June 30,
	2014		2013

Total finance receivables	$	472,587	$	525,118
Less current portion		119,793		116,444
Non-current portion of finance receivables	$	352,794	$	408,674

Schedule of credit quality indicators

Credit Quality Indicators
As of June 30, 2014

Credit risk profile based on payment activity:
	Leases

Performing	$	472,587
Nonperforming		-
Total	$	472,587

Schedule of age analysis of past due finance receivables

Age Analysis of Past Due Finance Receivables
As of June 30, 2014

	31 – 60		61 – 90		Greater than						Total
	Days Past Due		Days Past Due		90 Days Past Due		Total Past Due		Current		Finance Receivables

Leases	$	-	$	909	$	378	$	1,287	$	471,300	$	472,587
Total	$	-	$	909	$	378	$	1,287	$	471,300	$	472,587


Age Analysis of Past Due Finance Receivables
As of June 30, 2013

	31 – 60		61 – 90		Greater than						Total
	Days Past Due		Days Past Due		90 Days Past Due		Total Past Due		Current		Finance Receivables

Leases	$	-	$	814	$	-	$	814	$	524,304	$	525,118
Total	$	-	$	814	$	-	$	814	$	524,304	$	525,118

PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Jun. 30, 2014

Property, Plant and Equipment [Abstract]

Schedule of property and equipment


	Useful	June 30,
	Lives	2014			2013
Computer equipment and purchased software	3-7 years	$	4,581,001		$	4,688,104
Property and equipment used for Rental Program	5 years		30,348,918			21,574,225
Furniture and equipment	3-7 years		681,717			693,554
Leasehold improvements	Lesser of life or lease term		575,343			539,629
			36,186,979			27,495,512
Less accumulated depreciation			(15,048,399	)		(10,255,447	)
		$	21,138,580		$	17,240,065

INTANGIBLE ASSETS (Tables)

12 Months Ended

Jun. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of amortization expense relating to all acquired intangible assets


	June 30, 2014
	Gross
	Carrying		Accumulated			Net Carrying
	Amount		Amortization			Value
Intangible assets:

Trademarks	$	1,482,100	$	(1,050,000	)	$	432,100
Patents		9,294,000		(9,294,000	)		-
Total	$	10,776,100	$	(10,344,000	)	$	432,100

	June 30, 2013
	Gross
	Carrying		Accumulated			Net Carrying
	Amount		Amortization			Value
Intangible assets:

Trademarks	$	1,482,100	$	(1,050,000	)	$	432,100
Patents		9,294,000		(9,272,047	)		21,953
Total	$	10,776,100	$	(10,322,047	)	$	454,053

ACCRUED EXPENSES (Tables)

12 Months Ended

Jun. 30, 2014

Accrued Liabilities [Abstract]

Schedule of accrued expenses


	June 30,		June 30,
	2014		2013

Accrued compensation and related sales commissions	$	545,110	$	583,710
Accrued professional fees		214,615		165,444
Accrued taxes and filing fees		640,958		253,527
Advanced customer billings		370,040		346,868
Accrued rent		155,712		226,582
Accrued other		175,538		258,838
	$	2,101,973	$	1,834,969

LONG-TERM DEBT (Tables)

12 Months Ended

Jun. 30, 2014

Debt Disclosure [Abstract]

Schedule of long-term debt


	June 30,		June 30,
	2014		2013

Capital lease obligations	$	414,525	$	345,925
Loan agreements		8,251		23,981
		422,776		369,906
Less current portion		172,911		247,152
	$	249,865	$	122,754

Schedule of maturities of long-term debt


2015	$	172,911
2016		91,003
2017		80,251
2018		56,282
Thereafter		22,329
	$	422,776

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

Schedule of fair value of financial instruments required to be measured at fair value


June 30, 2014	Level 1		Level 2		Level 3		Total

Cash equivalents	$	-	$	-	$	-	$	-
Common stock warrant liability, warrants exercisable at $2.6058 from September 18, 2011 through September 18, 2016	$	-	$	-	$	585,209	$	585,209

June 30, 2013	Level 1		Level 2		Level 3		Total

Cash equivalents	$	192,620	$	-	$	-	$	192,620
Common stock warrant liability, warrants exercisable at $2.6058 from September 18, 2011 through September 18, 2016	$	-	$	-	$	650,638	$	650,638

Schedule of changes in fair value of the company's level 3 financial instruments


	June 30,
	2014			2013

Beginning balance	$	(650,638	)	$	(918,566	)
Gain due to change in fair value of warrant liabilities, net		65,429			267,928
Ending balance	$	(585,209	)	$	(650,638	)

INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2014

Income Tax Disclosure [Abstract]

Schedule of income tax benefit in the provision for income taxes


	June 30,
	2014			2013
Deferred tax assets:
Net operating loss carryforwards	$	47,776,042		$	49,534,732
Deferred research and development costs		710,640			135,189
Intangibles		907,274			1,132,471
Stock-based compensation		250,426			230,452
Deferred gain on assets under sale-leaseback transaction		460,902			-
Other		740,040			671,947
		50,845,324			51,704,791
Deferred tax liabilities:
Intangibles and goodwill		(67,459	)		(40,245	)
Fixed Assets		(683,159	)		(585,889	)
Deferred tax assets, net		50,094,706			51,078,657
Valuation allowance		(22,833,685	)		(51,118,902	)
Deferred tax assets (liabilties), net of allowance		27,261,021			(40,245	)
Less current portion		907,691			-
Deferred tax assets (liabilties), non-current	$	26,353,330		$	(40,245	)

COMMON STOCK (Tables)

12 Months Ended

Jun. 30, 2014

Common Stock [Abstract]

Schedule of reserved shares of common stock for future issuance


Exercise of Common Stock Warrants			4,309,000
Conversions of Preferred Stock and cumulative Preferred Stock dividends			98,197
Issuance under 2012 Stock Incentive Plan			31,484
Issuance under 2013 Stock Incentive Plan			500,000
Issuance under 2014 Stock Option Incentive Plan			750,000
Issuance to former Chief Executive Officer upon the occurrence of a USA Transaction			140,000
Total shares reserved for future issuance			5,828,681

Schedule of nonvested common shares


				Weighted-Average
				Grant-Date
	Shares			Fair Value
Nonvested Shares
Nonvested at June 30, 2011		187,335		$	2.32
Granted		473,285			1.58
Vested		(380,282	)		1.73
Forfeited due to Separation Agreement		(91,667	)		2.00
Forfeited, Director changes		(16,668	)		1.71
Nonvested at June 30, 2012		172,003		$	1.82
Granted		156,429			1.45
Vested		(204,587	)		1.72
Forfeited, Employee shares not earned		(26,699	)		1.52
Nonvested at June 30, 2013		97,146		$	1.52
Granted		10,000			2.17
Vested		(55,001	)		1.62
Forfeited, Director changes		(3,334	)		0.94
Forfeited, Employee shares not earned		(5,000	)		1.52
Nonvested at June 30, 2014		43,811		$	1.59

COMMON STOCK WARRANTS AND OPTIONS (Tables)

12 Months Ended

Jun. 30, 2014

Common Stock Warrants and Options [Abstract]

Schedule of exercise prices and expiration dates for warrants outstanding

	Exercise
Warrants	Price			Expiration
Outstanding	Per Share			Date
4,264,000		$	2.6058	September 18, 2016
45,000		$	2.10	December 31, 2017
4,309,000

Schedule of common stock warrant activity


	Warrants
Outstanding at June 30, 2011		15,567,199
Issued		-
Exercised		(7,317	)
Expired		(7,514,263	)
Outstanding at June 30, 2012		8,045,619
Issued		45,000
Exercised		(399,597	)
Expired		(329,314	)
Outstanding at June 30, 2013		7,361,708
Issued		-
Exercised		(2,090,226	)
Expired		(962,482	)
Outstanding at June 30, 2014		4,309,000

Schedule of stock option granted weighted average assumptions


	Year ended
	June 30, 2014
Expected volatility		79	%
Expected life	7 years
Expected dividends		0.00	%
Risk-free interest rate		2.22	%

Schedule of common stock option activity

						Weighted-
				Exercise		Average
	Options			Price		Exercise
	Outstanding			Per Share		Price

Outstanding and exercisable at June 30, 2011		90,666		$	7.50-8	$	7.53
Granted		-			-		-
Expired		(45,333	)	$	7.50-8	$	7.53
Outstanding and exercisable at June 30, 2012		45,333		$	7.50-8	$	7.53
Granted		-			-		-
Expired		(45,333	)	$	7.50-8	$	7.53
Outstanding and exercisable at June 30, 2013		-		$	-	$	-
Granted		120,000		$	2.05	$	2.05
Exercised/vested		-		$	-	$	-
Expired		-		$	-	$	-
Outstanding at June 30, 2014		120,000		$	2.05	$	2.05

Schedule of aggregate intrinsic value for options outstanding


					Weighted Average
Options	Options		Exercise Price Per		Remaining Life		Remaining Life		Intrinsic Value-
Outstanding	Exercisable		Share		Outstanding		Exercisable		Outstanding		Exercisable
120,000		-	$	2.05		6.97		-		-		-
120,000		-				6.97		-		-		-

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Jun. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

Schedule of gain on sale of ePort equipment


Rental equipment sold, cost	$	1,918,920
Rental equipment sold, accumulated depreciation upon sale		(76,032	)
Rental equipment sold, net book value		1,842,888
Proceeds from Sale		2,995,095
Gain on sale of rental equipment	$	1,152,207

Schedule of capital leases and non-cancellable operating leases


	Operating Leases		Other Operating		Total Operating		Capital
	from Sale Leaseback		Leases		Leases		Leases

2015	$	988,381	$	435,578	$	1,423,959	$	198,416
2016		988,381		361,927		1,350,308		111,647
2017		988,381		810		989,191		92,261
2018		-		-		-		60,585
2019		-		-		-		23,362
Thereafter		-		-		-		-
Total minimum lease payments	$	2,965,143	$	798,315	$	3,763,458	$	486,271
Less amount representing interest								71,745
Present value of net minimum lease payments								414,526
Less current obligations under capital leases								164,660
Obligations under capital leases, less current portion							$	249,866

BUSINESS (Detail Textuals) - USD ($)	12 Months Ended
BUSINESS (Detail Textuals) - USD ($)	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net income (loss)	$ 27,530,652	$ 854,123	$ (5,211,238)
Benefit (provision) for income taxes	$ 27,255,398	$ (27,646)	$ (12,599)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

ACCOUNTING POLICIES (Detail Textuals)	12 Months Ended
ACCOUNTING POLICIES (Detail Textuals)	Jun. 30, 2014
Accounting Policies [Abstract]
Original maturities of all highly liquid investments represent cash equivalents	three months or less
Term of notes receivable or quick start leases	60 months

ACCOUNTING POLICIES (Detail Textuals 1) - Customer	12 Months Ended
ACCOUNTING POLICIES (Detail Textuals 1) - Customer	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012
License and transaction processing revenues \| Customer one
Concentration Risk [Line Items]
Concentration percentage	26.00%	26.00%	25.00%
Number of customers	1	1	1
License and transaction processing revenues \| Customer two
Concentration Risk [Line Items]
Concentration percentage	26.00%	37.00%	43.00%
Number of customers		2	2
License and transaction processing revenues \| Another customer
Concentration Risk [Line Items]
Concentration percentage		11.00%	18.00%
Trade accounts and finance receivables
Concentration Risk [Line Items]
Concentration percentage	22.00%	41.00%
Number of customers	1	1

ACCOUNTING POLICIES (Detail Textuals 2) - USD ($)	12 Months Ended
ACCOUNTING POLICIES (Detail Textuals 2) - USD ($)	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012
Operating Leased Assets [Line Items]
Depreciation	$ 5,463,985	$ 3,837,174	$ 2,443,054
ePort equipment included in property and equipment, net	21,138,580	17,240,065
Jump start equipment \| Property and equipment, net
Operating Leased Assets [Line Items]
ePort equipment included in property and equipment, net	19,824,000	15,685,000
Jump start equipment \| Equipment sales
Operating Leased Assets [Line Items]
Activation fee revenue	1,032,000	806,000	607,000
Jump start equipment \| License and transaction fees
Operating Leased Assets [Line Items]
Service fee revenue	13,337,000	10,193,000	6,074,000
Jump start equipment \| Cost of revenues and services
Operating Leased Assets [Line Items]
Depreciation	$ 4,804,900	$ 3,171,000	$ 1,740,000

ACCOUNTING POLICIES (Detail Textuals 3) - USD ($)	12 Months Ended
ACCOUNTING POLICIES (Detail Textuals 3) - USD ($)	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012
Accounting Policies [Abstract]
Research and Development Expense	$ 1,018,000	$ 901,000	$ 1,038,000
Stock compensation expense	$ 450,078	$ 483,740	$ 584,487

ACCOUNTING POLICIES (Detail Textuals 4) - shares	12 Months Ended
ACCOUNTING POLICIES (Detail Textuals 4) - shares	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from calculation of EPS			(45,333)
Stock purchase warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares or warrants assumed to calculate weighted average common shares outstanding		825,673
Antidilutive securities excluded from calculation of EPS	(4,309,000)	(5,212,955)	(8,045,619)
Conversion of preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from calculation of EPS	(85,936)	(85,847)	(4,430)
Conversion of cumulative preferred dividends
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from calculation of EPS	(12,261)	(11,596)	(10,932)

FINANCE RECEIVABLES - Information regarding finance receivables (Details) - USD ($)	Jun. 30, 2014	Jun. 30, 2013
Receivables [Abstract]
Total finance receivables	$ 472,587	$ 525,118
Less current portion	119,793	116,444
Non-current portion of finance receivables	$ 352,794	$ 408,674

FINANCE RECEIVABLES - Credit risk profile based on payment activity (Details 1) - USD ($)	Jun. 30, 2014	Jun. 30, 2013
Financing Receivable, Recorded Investment [Line Items]
Total finance receivables	$ 472,587	$ 525,118
Leases
Financing Receivable, Recorded Investment [Line Items]
Total finance receivables	472,587
Leases \| Performing
Financing Receivable, Recorded Investment [Line Items]
Total finance receivables	472,587
Leases \| Nonperforming
Financing Receivable, Recorded Investment [Line Items]
Total finance receivables

FINANCE RECEIVABLES - Age analysis of past due finance receivables (Details 2) - USD ($)	Jun. 30, 2014	Jun. 30, 2013
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60 Days Past Due
61-90 Days Past Due	909	814
Greater than 90 Days Past Due	378
Total Past Due	1,287	814
Current	471,300	524,304
Total Finance Receivables	472,587	525,118
Leases
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60 Days Past Due
61-90 Days Past Due	909	814
Greater than 90 Days Past Due	378
Total Past Due	1,287	814
Current	471,300	524,304
Total Finance Receivables	$ 472,587	$ 525,118

PROPERTY AND EQUIPMENT - Summary of property and equipment at cost (Details) - USD ($)	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 36,186,979	$ 27,495,512
Less accumulated depreciation	(15,048,399)	(10,255,447)
Property and equipment, net	$ 21,138,580	17,240,065
Computer equipment purchased software
Property, Plant and Equipment [Line Items]
Useful lives	3-7 years
Property, plant and equipment, gross	$ 4,581,001	4,688,104
Property and equipment used for Rental Program
Property, Plant and Equipment [Line Items]
Useful lives	5 years
Property, plant and equipment, gross	$ 30,348,918	21,574,225
Less accumulated depreciation	$ (10,525,000)	(5,889,000)
Furniture and equipment
Property, Plant and Equipment [Line Items]
Useful lives	3-7 years
Property, plant and equipment, gross	$ 681,717	693,554
Leasehold improvements
Property, Plant and Equipment [Line Items]
Useful lives	Lesser of life or lease term
Property, plant and equipment, gross	$ 575,343	$ 539,629

PROPERTY AND EQUIPMENT (Detail Textuals) - USD ($)	12 Months Ended
PROPERTY AND EQUIPMENT (Detail Textuals) - USD ($)	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012
Property, Plant and Equipment [Line Items]
Assets under capital lease	$ 2,031,000	$ 1,965,000
Capital lease amortization included in depreciation expense	305,000	265,000	$ 189,000
Accumulated depreciation attributable to the Lessor Equipment is included in accumulated depreciation	15,048,399	10,255,447
Jump Start Program
Property, Plant and Equipment [Line Items]
Accumulated depreciation attributable to the Lessor Equipment is included in accumulated depreciation	$ 10,525,000	$ 5,889,000

INTANGIBLE ASSETS - Summary of intangible assets (Details) - USD ($)	Jun. 30, 2014	Jun. 30, 2013
Intangible assets:
Gross Carrying Amount	$ 10,776,100	$ 10,776,100
Accumulated Amortization	(10,344,000)	(10,322,047)
Net Carrying Value	432,100	454,053
Trademarks
Intangible assets:
Gross Carrying Amount	1,482,100	1,482,100
Accumulated Amortization	(1,050,000)	(1,050,000)
Net Carrying Value	432,100	432,100
Patents
Intangible assets:
Gross Carrying Amount	9,294,000	9,294,000
Accumulated Amortization	(9,294,000)	(9,272,047)
Net Carrying Value		$ 21,953

INTANGIBLE ASSETS (Detail Textuals) - USD ($)	12 Months Ended
INTANGIBLE ASSETS (Detail Textuals) - USD ($)	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization	$ 21,953	$ 742,400	$ 997,900
Indefinite-Lived Trademarks	$ 432,100	$ 432,100

ACCRUED EXPENSES - Information regarding accrued expenses (Details) - USD ($)	Jun. 30, 2014	Jun. 30, 2013
Accrued Liabilities [Abstract]
Accrued compensation and related sales commissions	$ 545,110	$ 583,710
Accrued professional fees	214,615	165,444
Accrued taxes and filing fees	640,958	253,527
Advanced customer billings	370,040	346,868
Accrued rent	155,712	226,582
Accrued other	175,538	258,838
Accrued expenses, Total	$ 2,101,973	$ 1,834,969

LINE OF CREDIT (Detail Textuals) - USD ($)		1 Months Ended		12 Months Ended
LINE OF CREDIT (Detail Textuals) - USD ($)	Jul. 10, 2012	Jun. 17, 2014	Apr. 15, 2013	Jun. 30, 2014	Jun. 30, 2013
Line of Credit Facility [Line Items]
Exercise price of shares to be purchased as warrants (in dollars per share)				$ 2.6058	$ 2.6058
Warrants issued in conjunction with Line of Credit Amendment					$ 55,962
Non-cash interest and amortization of debt discount				$ 2,095	53,867
Line of credit				5,000,000	3,000,000
Line of credit available				$ 2,000,000
Line of Credit \| Avidbank (the "Bank") \| Loan and Security Agreement
Line of Credit Facility [Line Items]
Line of credit facility, description	The Loan Documents provide that the aggregate amount of advances under the Line of Credit shall not exceed the lesser of (i) $3.0 million, or (ii) 75% of eligible accounts receivable as defined in the Loan Documents plus 80% of the prior two months transaction processing revenues and networking service fees as defined in the Loan Documents, provided that the amounts advanced on account of such processing revenues and service fees shall not exceed $2,000,000 without the Bank's prior consent, after the First Amendment entered into on January 2, 2013.		The Third Amendment provides that the aggregate amount of advances now available to the Company under the Line of Credit cannot exceed the lesser of (i) $5.0 million, or (ii) 80% of the prior three months transaction processing revenues and networking service fees as defined in the Loan Agreement.
Maximum limit of amount under line of credit	$ 3,000,000		$ 5,000,000
Maximum limit of amount of advances under Line of Credit	$ 3,000,000	$ 7,000,000	$ 5,000,000
Percentage limit of eligible accounts receivable	75.00%
Percentage of prior months transaction processing revenues and networking service fees	80.00%		80.00%
Threshold limit of processing revenues and service fees	$ 2,000,000
Line of credit facility, basis of measurement	Prime rate
Line of credit facility, interest rate description	The outstanding balance of the amounts advanced under the Line of Credit will bear interest at 2% above the prime rate as published in The Wall Street Journal or 5% whichever is higher.
Percentage of interest rate above prime rate as per condition one	2.00%
Percentage of interest rate on line of credit as per condition two	5.00%
Minimum interest payable on line of credit	$ 20,000
Term of line of credit	1 year
Line of Credit \| Avidbank (the "Bank") \| Warrant \| Loan and Security Agreement
Line of Credit Facility [Line Items]
Number of common stock called by warrants				45,000
Exercise price of shares to be purchased as warrants (in dollars per share)				$ 2.10
Warrants issued in conjunction with Line of Credit Amendment				$ 55,962	$ 55,962

LONG-TERM DEBT - Long-term debt (Details) - USD ($)	Jun. 30, 2014	Jun. 30, 2013
Debt Instrument [Line Items]
Long-term debt	$ 422,776	$ 369,906
Less current portion	172,911	247,152
Long-term debt, less current portion	249,865	122,754
Capital Lease Obligations
Debt Instrument [Line Items]
Long-term debt	414,525	345,925
Loan agreements
Debt Instrument [Line Items]
Long-term debt	$ 8,251	$ 23,981

LONG-TERM DEBT-Maturities of long-term debt (Details 1) - USD ($)	Jun. 30, 2014	Jun. 30, 2013
Debt Disclosure [Abstract]
2014	$ 172,911
2015	91,003
2016	80,251
2017	56,282
Thereafter	22,329
Long-term Debt	$ 422,776	$ 369,906

LONG-TERM DEBT (Detail Textuals)	1 Months Ended
LONG-TERM DEBT (Detail Textuals)	Apr. 30, 2014 USD ($) Installment	Mar. 31, 2014 USD ($) Installment	Feb. 28, 2014 USD ($) Installment	Aug. 31, 2013 USD ($) Installment	Jul. 31, 2013 USD ($) Installment	Jun. 30, 2013 USD ($) Installment	Apr. 30, 2013 USD ($) Installment	Mar. 31, 2013 USD ($) Installment	Jan. 30, 2013 USD ($) Installment	Jul. 31, 2012 USD ($) Installment	Jun. 30, 2012 USD ($) Installment	Apr. 30, 2012 USD ($) Installment	Nov. 30, 2011 USD ($) Installment	Aug. 31, 2011 USD ($) Installment	Jul. 31, 2011 USD ($) Installment	Mar. 31, 2010 USD ($) Installment	Jul. 31, 2009 USD ($) Installment
Capital lease for office equipment
Debt Instrument [Line Items]
Payment of finance long term debt	$ 4,000				$ 22,000	$ 16,000											$ 24,836
Number of installments \| Installment	36				24	48											46
Debt payment terms	Monthly				Monthly	Monthly											Monthly
Amount of equal monthly installments finance long term debt	$ 135				$ 1,033	$ 456											$ 677
Capital lease for network equipment
Debt Instrument [Line Items]
Payment of finance long term debt			$ 196,000				$ 32,000	$ 24,000	$ 45,000			$ 62,000		$ 496,000
Number of installments \| Installment			48				12	3	37			36		36
Debt payment terms			Monthly				Quarterly	Annual	Monthly			Monthly		Monthly
Amount of equal monthly installments finance long term debt			$ 4,972				$ 2,915	$ 8,686	$ 1,501			$ 1,785		$ 14,145
Capital lease for equipment to support customer service
Debt Instrument [Line Items]
Payment of finance long term debt								$ 15,000
Number of installments \| Installment								36
Debt payment terms								Monthly
Amount of equal monthly installments finance long term debt								$ 464
Capital lease for leasehold improvements and office furniture
Debt Instrument [Line Items]
Payment of finance long term debt		$ 103,000
Number of installments \| Installment		60
Debt payment terms		Monthly
Amount of equal monthly installments finance long term debt		$ 2,149
Loan agreement for financing insurance policies premium
Debt Instrument [Line Items]
Payment of finance long term debt				$ 101,850						$ 128,062					$ 90,372
Number of installments \| Installment				9						10					9
Debt payment terms				Monthly						Monthly					Monthly
Amount of equal monthly installments finance long term debt				$ 11,567						$ 13,103
Interest rate of finance long term debt				5.27%						5.02%					5.57%
Loan agreement for purchase of computer equipment
Debt Instrument [Line Items]
Payment of finance long term debt																$ 195,000
Number of installments \| Installment																36
Debt payment terms																Monthly
Interest rate of finance long term debt																4.95%
Loan agreement for financing software licenses
Debt Instrument [Line Items]
Payment of finance long term debt											$ 212,000
Number of installments \| Installment											4
Debt payment terms											Quarterly
Interest rate of finance long term debt											11.09%
Loan agreement for financing network equipment
Debt Instrument [Line Items]
Payment of finance long term debt													$ 46,000
Number of installments \| Installment													12
Debt payment terms													Quarterly
Amount of equal monthly installments finance long term debt													$ 4,226
Interest rate of finance long term debt													6.47%

FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair value of the company financial instruments that are required to be measured at fair value (Details) - USD ($)	Jun. 30, 2014	Jun. 30, 2013
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents		$ 192,620
Common stock warrant liability, warrants exercisable at $2.6058 from September 18, 2011 through September 18, 2016
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents
Common stock warrant liability, warrants exercisable at $2.6058 from September 18, 2011 through September 18, 2016
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents
Common stock warrant liability, warrants exercisable at $2.6058 from September 18, 2011 through September 18, 2016	585,209	650,638
Total
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents		192,620
Common stock warrant liability, warrants exercisable at $2.6058 from September 18, 2011 through September 18, 2016	$ 585,209	$ 650,638

FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair value of the company financial instruments that are required to be measured at fair value (Parentheticals) (Details) - $ / shares	Jun. 30, 2014	Jun. 30, 2013
Fair Value Disclosures [Abstract]
Exercise Price Per Share	$ 2.6058	$ 2.6058

FAIR VALUE OF FINANCIAL INSTRUMENTS - Changes in fair value of the Company level 3 financial instruments (unaudited) (Details 1) - USD ($)	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ (650,638)
Gain due to change in fair value of warrant liabilities, net	65,429	$ 267,928
Ending balance	$ (585,209)	$ (650,638)

FAIR VALUE OF FINANCIAL INSTRUMENTS (Detail Textuals) - USD ($) shares in Millions	1 Months Ended
	Mar. 31, 2011	Jun. 30, 2014	Jun. 30, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of common stock warrants		$ 585,209	$ 650,638
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents			192,620
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents
Purchase of company's common stock (in shares)	3.9
Valuation method used to determine fair value	Proprietary valuation models

INCOME TAXES (Details) - USD ($)	Jun. 30, 2014	Jun. 30, 2013
Deferred tax assets:
Net operating loss carryforwards	$ 47,776,042	$ 49,534,732
Deferred research and development costs	710,640	135,189
Intangibles	907,274	1,132,471
Stock-based compensation	250,426	230,452
Deferred gain on assets under sale-leaseback transaction	460,902
Other	740,040	671,947
Deferred tax assets, gross	50,845,324	51,704,791
Deferred tax liabilities:
Intangibles and goodwill	(67,459)	(40,245)
Fixed Assets	(683,159)	(585,889)
Deferred tax assets, net	50,094,706	51,078,657
Valuation allowance	(22,833,685)	(51,118,902)
Deferred tax assets (liabilities), net of allowance	27,261,021	(40,245)
Less current portion	907,691
Deferred tax assets (liabilities), non-current	$ 26,353,330	$ (40,245)

INCOME TAXES (Detail Textuals) - USD ($)	12 Months Ended
INCOME TAXES (Detail Textuals) - USD ($)	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012
Income Tax Disclosure [Abstract]
Reduction valuation allowances recorded in prior periods	$ 27,255,398
Deferred tax liabilities		$ 40,245
Valuation allowances of relating to operating loss carryforward	64,000,000
Current federal income taxes	21,021
Deferred federal income tax	52,533	20,842	$ 9,498
Deferred state income taxes	21,343	6,804	3,101
Common stock related to excess tax benefits from stock-based compensation	24,847
Income Tax Expense (Benefit)	(27,255,398)	27,646	12,599
Net operating loss carryforwards	165,566,973
Maximum amount of net operating loss carryforwards	127,362,276
Valuation allowance	22,833,685	51,118,902
Income tax benefit	$ 93,586	$ 299,801	$ 1,767,537
Federal statutory rate	34.00%	34.00%	34.00%
Effects of increases in the valuation allowance		$ 205,266	$ 2,372,354
Amount of increase in deferred tax assets for effects of permanent difference	$ 8,168	71,379	594,264
State income taxes net of federal benefit	$ 17,989	$ 4,490	$ 2,046

PREFERRED STOCK (Detail Textuals) - Series A Preferred Stock	12 Months Ended
	Jun. 30, 2014 USD ($) $ / shares	Jun. 30, 2013 USD ($)
Class of Stock [Line Items]
Conversion of preferred dividends into common stock (Per share)	0.194
Preferred stock voting rights	0.194 of a vote
Series A Preferred Stock annual cumulative dividend price per share (in dollars per share)	$ 1.50
Cumulative unpaid dividends \| $	$ 12,260,776	$ 11,596,324
Cumulative unpaid dividends converted into common shares, Convertible price per common share (in dollars per share)	$ 1,000
Series A preferred stock, redemption price per share (in dollars per share)	11.00
Liquidation price to be received by series A preferred stock holder for each outstanding share plus all cumulative unpaid dividends (in dollars per share)	$ 10.00

COMMON STOCK - Summary of reserved shares of common stock for future issuance (Details)	12 Months Ended
	Jun. 30, 2014 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise of Common Stock Warrants	4,309,000
Conversions of Preferred Stock and cumulative Preferred Stock dividends	98,197
Total shares reserved for future issuance	5,828,681
2012 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance under Stock Incentive Plan	31,484
2013 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance under Stock Incentive Plan	500,000
2014 Stock Option Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance under Stock Incentive Plan	750,000
Mr. Jensen
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance under Stock Incentive Plan	140,000

COMMON STOCK - Company nonvested common shares (Details 1) - $ / shares	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2011
Shares
Nonvested at June 30	97,146	172,003	187,335
Granted	10,000	156,429	473,285	305,000
Vested	(55,001)	(204,587)	(380,282)	130,665
Forfeited due to Separation Agreement			(91,667)
Forfeited, Director changes	(3,334)		(16,668)
Forfeited, Employee shares not earned	(5,000)	(26,699)
Nonvested at June 30	43,811	97,146	172,003	187,335
Weighted-Average Grant-Date Fair Value
Nonvested at June 30	$ 1.52	$ 1.82	$ 2.32
Granted	2.17	1.45	1.58
Vested	1.62	1.72	1.73
Forfeited due to Separation Agreement			2.00
Forfeited, Director changes	0.94		1.71
Forfeited, Employee shares not earned	1.52	1.52
Nonvested at June 30	$ 1.59	$ 1.52	$ 1.82	$ 2.32

COMMON STOCK - Stock Incentive Plan (Detail Textuals) - USD ($)	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2011	Jun. 21, 2013	Jun. 28, 2012	Jun. 13, 2011	Jun. 15, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock issued (in shares)			29,998
Number of shares granted	10,000	156,429	473,285	305,000
Stock compensation expense	$ 450,078	$ 483,740	$ 584,487
Nonvested number of shares	43,811	97,146	172,003	187,335
2010 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock to be available for issuance to future or current employees, directors and consultants								300,000
Number of common stock issued (in shares)	6,668	62,942	120,472
Value of shares issued	$ 6,024	$ 68,723	$ 248,851
Nonvested number of shares	10,001			10,000
2011 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock to be available for issuance to future or current employees, directors and consultants							300,000
Number of common stock issued (in shares)	51,667	96,665	141,666
Value of shares issued	$ 17,366	$ 157,645	$ 335,636
Number of shares granted	10,002
2012 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock to be available for issuance to future or current employees, directors and consultants						500,000
Number of common stock issued (in shares)	131,203	279,806
Value of shares issued	$ 505,651	$ 276,539
Number of shares granted	33,809
Number of shares vested value			$ 197,613
Common stock reserved for future issuance	31,484
Common stock issued (in shares)	0	47,620
Stock compensation expense	$ 0	$ 66,668
Nonvested number of shares	23,809
2013 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock to be available for issuance to future or current employees, directors and consultants					500,000
Common stock reserved for future issuance	500,000

COMMON STOCK - Jensen Employment Agreement (Detail Textuals 1) - shares	1 Months Ended			12 Months Ended
	Sep. 27, 2013	Sep. 27, 2012	Sep. 27, 2011	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2011
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of common stock issued (in shares)						29,998
Number of shares vested				55,001	204,587	380,282	(130,665)
Jensen Employment Agreement \| Mr. Jensen
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of common stock issued (in shares)				150,000
Number of shares vested	50,000	50,000	50,000

COMMON STOCK - Separation Agreement (Detail Textuals 2) - shares		12 Months Ended
	Oct. 14, 2011	Jun. 30, 2012
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of common stock issued (in shares)		29,998
Forfeited due to Separation Agreement		91,667
Separation Agreement \| Vesting April 2012 \| Mr. Jensen
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of common stock issued (in shares)	41,667
Separation Agreement \| Vesting September 2012 \| Mr. Jensen
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of common stock issued (in shares)	50,000
Separation Agreement \| Vesting April 2013 \| Mr. Jensen
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Forfeited due to Separation Agreement	41,667
Separation Agreement \| Vesting September 2013 \| Mr. Jensen
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Forfeited due to Separation Agreement	50,000

COMMON STOCK - Amended and Restated Employment and Non-Competition Agreement (Detail Textuals 3) - USD ($)	1 Months Ended			12 Months Ended
	Sep. 27, 2013	Sep. 27, 2012	Sep. 27, 2011	Jun. 30, 2014	Jun. 30, 2013	Sep. 30, 2012	Jun. 30, 2012	Jun. 30, 2011
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of shares granted				10,000	156,429		473,285	305,000
Number of common stock issued (in shares)							29,998
Number of shares vested year 1				55,001	204,587		380,282	(130,665)
2012 Stock Incentive Plan
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of shares granted				33,809
Number of common stock issued (in shares)				131,203	279,806
Stephen P. Herbert
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of shares vested year 1					8,142		96,201
Stephen P. Herbert \| 2012 Stock Incentive Plan
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of shares vested year 1				36,649
Mr. DeMedio
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of shares vested year 1					2,874		40,084
Mr. DeMedio \| 2012 Stock Incentive Plan
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of shares vested year 1				19,161
Amended And Restated Employment And Non Competition Agreement \| Stephen P. Herbert
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of common stock issued (in shares)			100,000
Number of shares vested year 1	33,334	33,333	33,333
Amended And Restated Employment And Non Competition Agreement \| Stephen P. Herbert \| 2012 Stock Incentive Plan
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of shares granted						71,429
Grant date fair value of shares granted						$ 100,000
Amended And Restated Employment And Non Competition Agreement \| Mr. DeMedio
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of shares granted			25,000
Number of shares vested year 1	8,334	8,333	8,333

COMMON STOCK - Recommendation of the Compensation Committee (Detail Textuals 4) - shares		1 Months Ended
	Sep. 05, 2012	Sep. 15, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of eligible shares awarded relating to total number of connections (in percentage)		30.00%
Number of eligible shares awarded relating to total revenues (in percentage)		30.00%
Number of eligible shares awarded relating to operating expenses (in percentage)		10.00%
Number of eligible shares awarded relating to operating earnings (in percentage)		30.00%
2013 Performance Plan \| Stephen P. Herbert
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares awarded, if all of the target performance goals are achieved (in shares)	275,000
Number of shares awarded, if minimum threshold performance target goals achieved (in shares)	75,000
Number of shares awarded, if maximum target performance goals are achieved (in shares)	550,000
2013 Performance Plan \| Mr. DeMedio
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares awarded, if all of the target performance goals are achieved (in shares)	100,000
Number of shares awarded, if minimum threshold performance target goals achieved (in shares)	25,000
Number of shares awarded, if maximum target performance goals are achieved (in shares)	200,000

COMMON STOCK - Stock Incentive Plan (Detail Textuals 5) - USD ($)	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2011
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock compensation expense	$ 450,078	$ 483,740	$ 584,487
Number of shares vested	55,001	204,587	380,282	(130,665)
Executive officer
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock compensation expense		$ 19,167	$ 197,613
Number of shares vested		11,016	136,285
Stephen P. Herbert
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of shares vested		8,142	96,201
Mr. DeMedio
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of shares vested		2,874	40,084
2012 Stock Incentive Plan
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock compensation expense	$ 0	$ 66,668
2012 Stock Incentive Plan \| Executive officer
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock compensation expense	$ 71,963
Number of shares vested	55,810
2012 Stock Incentive Plan \| Stephen P. Herbert
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of shares vested	36,649
2012 Stock Incentive Plan \| Mr. DeMedio
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Number of shares vested	19,161
2012 Stock Incentive Plan \| Chief Financial Officer ("CFO") \| Stock bonus
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock compensation expense	$ 38,220
Number of shares vested		21,000

COMMON STOCK - 2014 LTI Stock Plan (Detail Textuals 6) - 2014 LTI Stock Plan	12 Months Ended
	Jun. 30, 2014 USD ($)
Chief Executive Officer ("CEO") \| Year-over-year percentage target goals
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Value of shares to be awarded after achieving the target goal	$ 341,277
Base salary percentage of awarded shares	100.00%
Chief Executive Officer ("CEO") \| Maximum distinguished year-over-year percentage target goals
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Value of shares to be awarded after achieving the target goal	$ 682,554
Base salary percentage of awarded shares	200.00%
Chief Financial Officer ("CFO") \| Year-over-year percentage target goals
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Value of shares to be awarded after achieving the target goal	$ 175,698
Base salary percentage of awarded shares	75.00%
Chief Financial Officer ("CFO") \| Maximum distinguished year-over-year percentage target goals
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Value of shares to be awarded after achieving the target goal	$ 351,396
Base salary percentage of awarded shares	150.00%

COMMON STOCK - 2010 Stock Incentive Plan (Detail Textuals 7) - USD ($)	1 Months Ended			12 Months Ended				13 Months Ended
	Jul. 31, 2012	Mar. 31, 2012	Feb. 29, 2012	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2014	Aug. 10, 2014	Apr. 01, 2014	Aug. 10, 2013	Apr. 01, 2013	Aug. 10, 2012	Apr. 01, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted				10,000	156,429	473,285	305,000
Number of shares vested				55,001	204,587	380,282	(130,665)
Number of shares forfeited						91,667
Number of shares vested and been issued						29,998
Number of shares reserved for future issuance						10,002
Number of shares remain non-vested				43,811	97,146	172,003	187,335	43,811
Non-Employee Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares forfeited			6,667
Number of shares returned			3,333
Executive officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares vested					11,016	136,285
Executive officer \| Employment Agreement
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock shares cancelled to pay payroll taxes (in shares)				49,311	64,847	38,749
Payment of payroll obligations				$ 89,020	$ 121,052	$ 51,381
2010 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares vested				19,999	39,999
Number of shares vested and been issued				6,668	62,942	120,472
Number of shares remain non-vested				10,001			10,000	10,001
2010 Stock Incentive Plan \| Non-Employee Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted							10,000
Issue price per share							$ 2.22
Number of shares granted							50,000
Number of shares vested					16,670	16,665	16,665
2010 Stock Incentive Plan \| Non-Employee Director \| Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized to purchase		10,000
Grant date fair value of shares issued as stock award		$ 0.94
Number of shares issued as stock award to non-employee Director										10,002		9,999		9,999
2011 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted				10,002
Number of shares granted				10,002
Number of shares vested								19,998
Number of shares vested and been issued				51,667	96,665	141,666
Number of shares reserved for future issuance								10,002
2011 Stock Incentive Plan \| Non-Employee Director \| Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted	30,000
Number of shares authorized to purchase	10,000
Grant date fair value of shares issued as stock award	$ 1.45
Number of shares issued as stock award to non-employee Director											9,999		9,999
2011 Stock Incentive Plan \| Non-Employee Director \| Subsequent Event \| Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued as stock award to non-employee Director									10,002

COMMON STOCK - Director compensation (Detail Textuals 8) - USD ($)	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock issued (in shares)			29,998
Stock compensation expense	$ 450,078	$ 483,740	$ 584,487
Common stock issued for services (in shares)			19,175
Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock issued (in shares)	75,632	88,594	2,299
Stock compensation expense	$ 140,000	$ 157,500	$ 3,333
Lead independent director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock issued for services (in shares)	37,287	23,248	19,175

COMMON STOCK WARRANTS AND OPTIONS - Exercise prices and expiration dates for warrants outstanding (Details) - $ / shares	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2011
Class of Warrant or Right [Line Items]
Exercise Price Per Share	$ 2.6058	$ 2.6058
Warrant
Class of Warrant or Right [Line Items]
Warrants Outstanding	4,309,000	7,361,708	8,045,619	15,567,199
Warrant \| September 18, 2016
Class of Warrant or Right [Line Items]
Warrants Outstanding	4,264,000
Exercise Price Per Share	$ 2.6058
Expiration Date	Sep. 18, 2016
Warrant \| December 31, 2017
Class of Warrant or Right [Line Items]
Warrants Outstanding	45,000
Exercise Price Per Share	$ 2.10
Expiration Date	Dec. 17, 2017

COMMON STOCK WARRANTS AND OPTIONS - Summary of common stock warrant activity (Details 1) - Warrant - shares	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012
Class Of Warrant Or Right [Roll Forward]
Outstanding at June 30	7,361,708	8,045,619	15,567,199
Issued		45,000
Exercised	(2,090,226)	(399,597)	(7,317)
Expired	(962,482)	(329,314)	(7,514,263)
Outstanding at June 30	4,309,000	7,361,708	8,045,619

COMMON STOCK WARRANTS AND OPTIONS -Summary of fair value of options granted (Details 2)	12 Months Ended
	Jun. 30, 2014
Common Stock Warrants and Options [Abstract]
Expected volatility	79.00%
Expected life	7 years
Expected dividends	0.00%
Risk-free interest rate	2.22%

COMMON STOCK WARRANTS AND OPTIONS - Summary of common Stock Option activity (Details 3) - Stock options - $ / shares	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2011
Options Outstanding
Outstanding and exercisable at the beginning		45,333	90,666
Granted	120,000
Expired		(45,333)	(45,333)
Outstanding and exercisable at the ending	120,000		45,333	90,666
Exercise Price Per Share
Outstanding and exercisable at the beginning
Granted	2.05
Expired
Outstanding and exercisable at the ending	2.05
Weighted-Average Exercise Price
Outstanding and exercisable at the beginning		7.53	$ 7.53
Granted	2.05
Expired		7.53	7.53
Outstanding and exercisable at the ending	2.05		7.53	$ 7.53
Minimum
Exercise Price Per Share
Outstanding and exercisable at the beginning		7.50	7.50
Granted
Expired		7.50	7.50
Outstanding and exercisable at the ending			7.50	7.50
Maximum
Exercise Price Per Share
Outstanding and exercisable at the beginning		8	8
Granted
Expired		8	8
Outstanding and exercisable at the ending			$ 8	$ 8

COMMON STOCK WARRANTS AND OPTIONS - Summary of exercisable options, exercise prices, weighted average remaining contractual life and aggregate intrinsic value for options outstanding (Details 4)	12 Months Ended
	Jun. 30, 2014 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Outstanding \| shares	120,000
Options Exercisable \| shares
Weighted Average Remaining Life Outstanding	6 years 11 months 19 days
Intrinsic Value- Outstanding
Intrinsic Value- Exercisable
Exercise price per share 2.05
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Outstanding \| shares	120,000
Options Exercisable \| shares
Exercise Price Per Share	$ 2.05
Weighted Average Remaining Life Outstanding	6 years 11 months 19 days
Intrinsic Value- Outstanding
Intrinsic Value- Exercisable

COMMON STOCK WARRANTS AND OPTIONS (Detail Textuals) - $ / shares	1 Months Ended
	Jun. 30, 2009	Jun. 30, 2014	Jun. 30, 2013	Oct. 17, 2012	Mar. 14, 2007
Class of Warrant or Right [Line Items]
Exercise price of shares to be purchased as warrants (in dollars per share)		$ 2.6058	$ 2.6058
Securities Purchase Agreement
Class of Warrant or Right [Line Items]
Number of common stock called by warrants				17,532
Exercise price of shares to be purchased as warrants (in dollars per share)				$ 7.70
Warrant \| Securities Purchase Agreement \| S.A.C. Capital Associates, LLC ("SAC")
Class of Warrant or Right [Line Items]
Number of common stock called by warrants	903,955				833,333
Exercise price of shares to be purchased as warrants (in dollars per share)	$ 5.90				$ 6.40
Date of exercise of warrants	Sep. 14, 2013

COMMON STOCK WARRANTS AND OPTIONS (Detail Textuals 1) - USD ($)	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2011	May 12, 2013	Aug. 05, 2012	May 12, 2010	Aug. 07, 2009
Class of Warrant or Right [Line Items]
Exercise price of shares to be purchased as warrants (in dollars per share)	$ 2.6058	$ 2.6058
USATW warrants exercised	2,090,226	382,503	4,550	376,355
2009 Rights Offering \| Dealer manager
Class of Warrant or Right [Line Items]
Number of common stock called by warrants						145,716
Exercise price of shares to be purchased as warrants (in dollars per share)						$ 2.20
Warrant \| 2009 Rights Offering
Class of Warrant or Right [Line Items]
Exercise price of shares to be purchased as warrants (in dollars per share)			$ 2.20	$ 2.20
USATW warrants exercised			4,550	376,355
Proceeds from issuance of common stock			$ 10,010	$ 827,981
Warrant \| 2009 Rights Offering \| Source Capital Group, Inc. ("Source")
Class of Warrant or Right [Line Items]
Number of common stock called by warrants								7,285,792
Exercise price of shares to be purchased as warrants (in dollars per share)								$ 2.20
Warrant \| 2010 Public Offering
Class of Warrant or Right [Line Items]
Number of common stock called by warrants					165,207		2,753,454
Exercise price of shares to be purchased as warrants (in dollars per share)					$ 1.13		$ 1.13
USATW warrants exercised	2,090,226	369,287	0
Proceeds from issuance of common stock	$ 2,361,956	$ 417,294	$ 0

COMMON STOCK WARRANTS AND OPTIONS (Detail Textuals 2) - USD ($)	12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2011	Jul. 07, 2013	May 31, 2013	May 12, 2013	Dec. 31, 2011	Jul. 07, 2010	May 12, 2010	Mar. 12, 2010
Class of Warrant or Right [Line Items]
Exercise price of shares to be purchased as warrants (in dollars per share)	$ 2.6058	$ 2.6058
Warrants issued in conjunction with Line of Credit Amendment		$ 55,962
Non-cash interest and amortization of debt discount	$ 2,095	$ 53,867
Cashless exercise of warrants in issuance of common stock		36,186	2,767
Weighted-average fair value of options granted	$ 1.49
Common Stock
Class of Warrant or Right [Line Items]
Number of shares of common stock remain unexercised						1,258
Placement Agent
Class of Warrant or Right [Line Items]
Number of common stock called by warrants		13,216
Exercise price of shares to be purchased as warrants (in dollars per share)		$ 1.13
Placement Agent \| Common Stock
Class of Warrant or Right [Line Items]
Cashless exercise of warrants resulting in issuance of common stock (in shares)		17,094	990	83,472
Proceeds from issuance of common stock		$ 14,934
2010 Public Offering \| Common Stock
Class of Warrant or Right [Line Items]
Exercise price of shares to be purchased as warrants (in dollars per share)											$ 1.13
Number of shares of common stock remain unexercised											58,527
Warrant
Class of Warrant or Right [Line Items]
Number of warrants expired unexercised								6,904,887
Cashless exercise of warrants in issuance of common stock		36,186	2,767	127,497
Warrant \| Loan and Security Agreement
Class of Warrant or Right [Line Items]
Number of common stock called by warrants	45,000
Exercise price of shares to be purchased as warrants (in dollars per share)	$ 2.10
Warrants issued in conjunction with Line of Credit Amendment	$ 55,962
Non-cash interest and amortization of debt discount	2,095	$ 53,867
Warrant \| 2010 Public Offering
Class of Warrant or Right [Line Items]
Number of common stock called by warrants							165,207			2,753,454
Exercise price of shares to be purchased as warrants (in dollars per share)							$ 1.13			$ 1.13
Proceeds from issuance of common stock	$ 2,361,956	$ 417,294	$ 0
Warrant \| Rights offering (the "2010 Rights Offering")
Class of Warrant or Right [Line Items]
Number of common stock called by warrants					15,717				261,953
Exercise price of shares to be purchased as warrants (in dollars per share)					$ 1.13				$ 1.13
Proceeds from issuance of common stock				$ 296,007

COMMON STOCK WARRANTS AND OPTIONS (Detail Textuals 3) - USD ($)	Jun. 30, 2014	Jun. 30, 2013	Mar. 17, 2011
Class of Warrant or Right [Line Items]
Exercise price of shares to be purchased as warrants (in dollars per share)	$ 2.6058	$ 2.6058
Warrant liabilities	$ 585,209	$ 650,638
Placement Agent
Class of Warrant or Right [Line Items]
Warrants issued		13,216
Exercise price of shares to be purchased as warrants (in dollars per share)		$ 1.13
Warrant \| Private Placement Offering 2011
Class of Warrant or Right [Line Items]
Warrants issued			3,900,000
Exercise price of shares to be purchased as warrants (in dollars per share)			$ 2.6058
Number of warrants exercisable			4,264,000
Warrant \| Private Placement Offering 2011 \| Placement Agent
Class of Warrant or Right [Line Items]
Warrants issued			364,000
Exercise price of shares to be purchased as warrants (in dollars per share)			$ 2.6058

COMMON STOCK WARRANTS AND OPTIONS (Detail Textuals 4) - 2014 Stock Option Incentive Plan	12 Months Ended
	Jun. 30, 2014 Non-employee_directors shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of non-employee directors to whom options approved \| Non-employee_directors	6
Officers Directors And Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted	750,000
Board of Directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options approved to non-employee directors	20,000

RETIREMENT PLAN (Details Textuals) - USD ($)	12 Months Ended
RETIREMENT PLAN (Details Textuals) - USD ($)	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012
Compensation and Retirement Disclosure [Abstract]
Maximum percent of voluntary contribution	100.00%
Description of safe harbor matching contributions plan	<div><font size="2">Company elected and made a safe harbor matching contributions of 100% of the participant’s first 3% and 50% of the next 2% of compensation deferred into the Retirement Plan.</font></div>
Percentage of safe harbor matching contributions for first 3% employee compensation	100.00%	100.00%	100.00%
Percentage of employee compensation eligible for 100% safe harbor matching contributions	3.00%	3.00%	3.00%
Percentage of safe harbor matching contributions for next 2% employee compensation	50.00%	50.00%	50.00%
Percentage of employee compensation eligible for 50% of next safe harbor matching contributions	2.00%	2.00%	2.00%
Company's safe harbor contribution	$ 168,000	$ 176,000	$ 140,000

RELATED PARTY TRANSACTIONS (Details Textuals)	12 Months Ended
RELATED PARTY TRANSACTIONS (Details Textuals)	Jun. 30, 2012 USD ($)
Board of directors
Related Party Transaction [Line Items]
Legal services provided by Board of Directors	$ 744,000

COMMITMENTS AND CONTINGENCIES - Summary of sale of rental equipment (Details)	12 Months Ended
	Jun. 30, 2014 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Rental equipment sold, cost	$ 1,918,920
Rental equipment sold, accumulated depreciation upon sale	76,032
Rental equipment sold, net book value	1,842,888
Proceeds from Sale	2,995,095
Gain on sale of rental equipment	$ 1,152,207

COMMITMENTS AND CONTINGENCIES - LEASE COMMITMENTS (Details 1)	Jun. 30, 2014 USD ($)
Operating Leases from Sale Leaseback
2015 - Sale Leaseback	$ 988,381
2016 - Sale Leaseback	988,381
2017 - Sale Leaseback	988,381
2018 - Sale Leaseback
2019 - Sale Leaseback
Thereafter - Sale Leaseback
Total minimum lease payments - Sale Leaseback	2,965,143
Other Operating Leases
2015 - Other Operating Leases	435,578
2016 - Other Operating Leases	361,927
2017 - Other Operating Leases	810
2018 - Other Operating Leases
2019 - Other Operating Leases
Thereafter - Other Operating Leases
Total minimum lease payments - Other Operating Leases	798,315
Total Operating Leases
2015 - Operating Leases	1,423,959
2016 - Operating Leases	1,350,308
2017 - Operating Leases	989,191
2018 - Operating Leases
2019 - Operating Leases
Thereafter - Operating Leases
Total minimum lease payments - Operating Leases	3,763,458
Capital Leases
2015 - Capital Leases	198,416
2016 - Capital Leases	111,647
2017 - Capital Leases	92,261
2018 - Capital Leases	60,585
2019 - Capital Leases	23,362
Thereafter - Capital Leases
Total minimum lease payments - Capital Leases	486,271
Less amount representing interest	71,745
Present value of net minimum lease payments	414,526
Less current obligations under capital leases	164,660
Obligations under capital leases, less current portion	$ 249,866

COMMITMENTS AND CONTINGENCIES - LEASE COMMITMENTS (Detail Textuals)	1 Months Ended
	Jun. 27, 2014 USD ($) Lease	Jun. 26, 2014 USD ($) Lease	Jun. 30, 2014 USD ($)
Commitment And Contingency [Line Items]
Aggregate purchase price of sale leaseback agreements			$ 1,842,888
Gain on the sale of its ePort equipment for first two agreements			380,895
Deferred gain from sale-leaseback transactions			761,790
Varilease Finance Inc
Commitment And Contingency [Line Items]
Number of sale leaseback agreements \| Lease	2	6
Aggregate purchase price of sale leaseback agreements	$ 2,995,095	$ 8,000,000
Stipulated loss value percentage of master lease agreement		110.00%
Master lease agreement percentage of elapsed value each month		1.25%
Base monthly rental for the equipment	$ 82,365
Agreement lease term	36 month	36 month
Gain on the sale of its ePort equipment for first two agreements			1,152,207
Recognized gain on sale leaseback transaction			9,522
Deferred gain from sale-leaseback transactions			$ 1,142,685

COMMITMENTS AND CONTINGENCIES - LEASE COMMITMENTS (Detail Textuals 1)	1 Months Ended			12 Months Ended
	Nov. 30, 2012 USD ($) ft²	Oct. 31, 2011 USD ($)	Nov. 30, 2010 USD ($)	Jun. 30, 2014 USD ($) ft²	Jun. 30, 2013 USD ($)	Jun. 30, 2012 USD ($)
Commitment And Contingency [Line Items]
Rent expense under operating leases				$ 372,000	$ 432,000	$ 502,000
Gain on sale of rental equipment				$ 1,152,207
Malvern office facilities \| Property subject to operating lease
Commitment And Contingency [Line Items]
Square feet area taken under operating lease for principal executive office \| ft²				17,249
Operating leases, rent expense, minimum rentals			$ 29,000
Maximum monthly rental lease			32,000
Straight-lined rent expense of principal executive office, Per month				$ 25,000
New operations site in Malvern Pennsylvania \| Property subject to operating lease
Commitment And Contingency [Line Items]
Square feet area taken under operating lease for principal executive office \| ft²	11,250
Extension of operating lease period by amendment	Jan. 31, 2013
Operating leases, rent expense, minimum rentals	$ 4,406
Maximum monthly rental lease	4,678
Straight-lined rent expense of principal executive office, Per month	4,300
Malvern product warehousing facilities \| Product warehousing shipping and customer support
Commitment And Contingency [Line Items]
Extension of operating lease period by amendment		Jan. 31, 2013
Operating leases, rent expense, minimum rentals		$ 15,100
Maximum monthly rental lease		16,200
Straight-lined rent expense of principal executive office, Per month	$ 16,721	$ 15,600
Rent expense under operating leases			$ 195,000

COMMITMENTS AND CONTINGENCIES - EMPLOYMENT AGREEMENTS (Detail Textuals 2) - USD ($)					1 Months Ended					12 Months Ended
	Nov. 07, 2013	Apr. 14, 2013	Apr. 14, 2012	Apr. 14, 2011	Sep. 27, 2013	Sep. 27, 2012	Nov. 30, 2011	Sep. 27, 2011	Sep. 24, 2009	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2011
Commitment And Contingency [Line Items]
Number of shares granted										10,000	156,429	473,285	305,000
Number of shares vested										55,001	204,587	380,282	(130,665)
Stephen P. Herbert
Commitment And Contingency [Line Items]
Premiums agree to pay for a term life insurance policy							$ 1,500,000
Number of shares vested											8,142	96,201
David M. DeMedio
Commitment And Contingency [Line Items]
Base salary										$ 220,000
Premiums agree to pay for a term life insurance policy									$ 750,000
Percentage of monthly disability coverage up to of his monthly base compensation payable to age 65 or death									65.00%
Executive performance 2012 plan \| Stephen P. Herbert
Commitment And Contingency [Line Items]
Base salary							341,227
Cash bonus received if achieve all of the minimum threshold performance target goals							30,000
Cash bonus received if achieve all of the target performance goals							50,000
Cash bonus received if achieve all maximum distinguished performance target goals							$ 75,000
2010 Stock Incentive Plan
Commitment And Contingency [Line Items]
Number of shares vested										19,999	39,999
2010 Stock Incentive Plan \| David M. DeMedio
Commitment And Contingency [Line Items]
Number of shares granted				25,000				25,000
Number of shares vested	21,000	8,334	8,333	8,333	8,334	8,333		8,333

SUBSEQUENT EVENTS - SALE LEASEBACK (Detail Textuals) - USD ($)	1 Months Ended
	Jul. 31, 2014	Jun. 27, 2014	Jun. 26, 2014	Jun. 30, 2014
Subsequent Event [Line Items]
Aggregate purchase price of sale leaseback agreements				$ 1,842,888
Varilease Finance Inc
Subsequent Event [Line Items]
Aggregate purchase price of sale leaseback agreements		$ 2,995,095	$ 8,000,000
Base monthly rental for the equipment		$ 82,365
Agreement lease term		36 month	36 month
Recognized gain on sale leaseback transaction				$ 9,522
Subsequent Event \| Varilease Finance Inc
Subsequent Event [Line Items]
Aggregate purchase price of sale leaseback agreements	$ 4,993,879
Base monthly rental for the equipment	$ 137,731
Agreement lease term	36 month
Recognized gain on sale leaseback transaction	$ 1,450,000

SUBSEQUENT EVENTS - 2015 INCENTIVE PLANS (Detail Textuals 1) - Subsequent Event - 2015 Short-Term Incentive Plan	1 Months Ended
	Aug. 28, 2014
Subsequent Event [Line Items]
Percentage of annual financial goals	80.00%
Percentage of performance goals relating to the executive officer	20.00%
Percentage of annual financial goals are total revenues	30.00%
Percentage of cash generated from operations	30.00%
Percentage of non-GAAP net income	40.00%

SUBSEQUENT EVENTS - 2015 INCENTIVE PLANS (Detail Textuals 2) - Subsequent Event - 2015 Short-Term Incentive Plan	1 Months Ended
	Aug. 28, 2014 USD ($)
Stephen P. Herbert \| Year-over-year percentage target goals
Subsequent Event [Line Items]
Value of cash bonus awarded after achieving target goal	$ 136,500
Percentage of cash bonus on base salary	40.00%
Stephen P. Herbert \| Maximum distinguished year-over-year percentage target goals
Subsequent Event [Line Items]
Value of cash bonus awarded after achieving target goal	$ 273,000
Percentage of cash bonus on base salary	80.00%
David M. DeMedio \| Year-over-year percentage target goals
Subsequent Event [Line Items]
Value of cash bonus awarded after achieving target goal	$ 59,469
Percentage of cash bonus on base salary	25.00%
David M. DeMedio \| Maximum distinguished year-over-year percentage target goals
Subsequent Event [Line Items]
Value of cash bonus awarded after achieving target goal	$ 118,938
Percentage of cash bonus on base salary	50.00%

SUBSEQUENT EVENTS - 2015 INCENTIVE PLANS (Detail Textuals 3)	1 Months Ended
	Aug. 28, 2014
Subsequent Event \| 2015 Short-Term Incentive Plan
Subsequent Event [Line Items]
Percentage of weighting adjusted EBITDA	50.00%

SUBSEQUENT EVENTS - 2015 INCENTIVE PLANS (Detail Textuals 4) - Subsequent Event - 2015 Short-Term Incentive Plan	1 Months Ended
	Aug. 28, 2014 USD ($)
Stephen P. Herbert \| Year-over-year percentage target goals
Subsequent Event [Line Items]
Value of shares to be awarded after achieving the target goal	$ 341,227
Percentage of awarded shares on base salary	100.00%
Stephen P. Herbert \| Maximum distinguished year-over-year percentage target goals
Subsequent Event [Line Items]
Value of shares to be awarded after achieving the target goal	$ 682,454
Percentage of awarded shares on base salary	200.00%
David M. DeMedio \| Year-over-year percentage target goals
Subsequent Event [Line Items]
Value of shares to be awarded after achieving the target goal	$ 178,406
Percentage of awarded shares on base salary	75.00%
David M. DeMedio \| Maximum distinguished year-over-year percentage target goals
Subsequent Event [Line Items]
Value of shares to be awarded after achieving the target goal	$ 356,812
Percentage of awarded shares on base salary	150.00%

SUBSEQUENT EVENTS - COMMON STOCK OPTIONS (Detail Textuals 5) - Subsequent Event	Jun. 30, 2014 $ / shares shares
Incentive stock options \| Stephen P. Herbert
Subsequent Event [Line Items]
Number of shares authorized to purchase \| shares	55,555
Exercise price per share of authorized shares \| $ / shares	$ 1.80
Incentive stock options \| David M. DeMedio
Subsequent Event [Line Items]
Number of shares authorized to purchase \| shares	33,333
Exercise price per share of authorized shares \| $ / shares	$ 1.80
Non-qualified stock options \| Stephen P. Herbert
Subsequent Event [Line Items]
Number of shares authorized to purchase \| shares	150,000
Exercise price per share of authorized shares \| $ / shares	$ 1.80
Non-qualified stock options \| David M. DeMedio
Subsequent Event [Line Items]
Number of shares authorized to purchase \| shares	90,000
Exercise price per share of authorized shares \| $ / shares	$ 1.80

VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($)	12 Months Ended
VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($)	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2012
ACCOUNTS RECEIVABLE
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	$ 18,000	$ 25,000	$ 113,000
Additions charged to earnings	94,000	69,000	(46,000)
Deductions uncollectible receivables written off, net of recoveries	49,000	76,000	42,000
Balance at end of period	63,000	18,000	25,000
INVENTORY
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at beginning of period	727,000	712,000	628,000
Additions charged to earnings	164,000	135,000	136,000
Deductions uncollectible receivables written off, net of recoveries	126,000	120,000	52,000
Balance at end of period	$ 765,000	$ 727,000	$ 712,000