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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Dec. 31, 2014	Jan. 31, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	USA TECHNOLOGIES INC
Entity Central Index Key	0000896429
Trading Symbol	usat
Current Fiscal Year End Date	--06-30
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		35,747,905
Document Type	10-Q
Document Period End Date	Dec. 31, 2014
Amendment Flag	false
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2

Consolidated Balance Sheets - USD ($)	Dec. 31, 2014	Jun. 30, 2014
Current assets:
Cash	$ 6,734,077	$ 9,072,320
Accounts receivable, less allowance for uncollectible accounts of $197,000 and $63,000, respectively	2,758,475	2,683,579
Finance receivables	362,898	119,793
Inventory	3,448,374	1,486,777
Prepaid expenses and other current assets	586,144	363,367
Deferred income taxes	907,691	907,691
Total current assets	14,797,659	14,633,527
Finance receivables, less current portion	1,643,363	352,794
Prepaid expenses and other assets	410,838	190,703
Property and equipment, net	16,450,712	21,138,580
Deferred income taxes	26,290,424	26,353,330
Intangibles, net	432,100	432,100
Goodwill	7,663,208	7,663,208
Total assets	67,688,304	70,764,242
Current liabilities:
Accounts payable	5,385,822	7,753,911
Accrued expenses	1,726,614	1,915,799
Line of credit	4,000,000	5,000,000
Current obligations under long-term debt	203,621	172,911
Income taxes payable		21,021
Deferred gain from sale-leaseback transactions	860,390	380,895
Total current liabilities	12,176,447	15,244,537
Long-term liabilities:
Long-term debt, less current portion	261,716	249,865
Accrued expenses, less current portion	102,338	186,174
Warrant liabilities	139,755	585,209
Deferred gain from sale-leaseback transactions, less current portion	1,330,544	761,790
Total long-term liabilities	1,834,353	1,783,038
Total liabilities	14,010,800	17,027,575
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 $17,022,682 and $16,690,456, respectively)	3,138,056	3,138,056
Common stock, no par value: Authorized shares- 640,000,000 Issued and outstanding shares- 35,660,345 and 35,514,685, respectively	224,472,905	224,210,197
Accumulated deficit	(173,933,457)	(173,611,586)
Total shareholders' equity	53,677,504	53,736,667
Total liabilities and shareholders' equity	$ 67,688,304	$ 70,764,242

Consolidated Balance Sheets (Parentheticals) - USD ($)	Dec. 31, 2014	Jun. 30, 2014
Allowance for uncollectible accounts receivable (in dollars)	$ 197,000	$ 63,000
Preferred stock, no par value (in dollar 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	35,660,345	35,514,685
Common stock, shares outstanding	35,660,345	35,514,685
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)	$ 17,022,682	$ 16,690,456

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Revenues:
License and transaction fees	$ 10,479,496	$ 8,671,085	$ 20,635,718	$ 17,178,129
Equipment sales	2,341,441	1,899,429	4,437,821	3,515,443
Total revenues	12,820,937	10,570,514	25,073,539	20,693,572
Cost of services	7,157,840	5,495,385	14,408,947	10,904,848
Cost of equipment	1,929,841	1,244,996	3,796,098	2,375,820
Gross profit	3,733,256	3,830,133	6,868,494	7,412,904
Operating expenses:
Selling, general and administrative	3,530,064	3,193,568	7,162,551	6,488,912
Depreciation and amortization	151,737	126,875	321,140	285,384
Total operating expenses	3,681,801	3,320,443	7,483,691	6,774,296
Operating income (loss)	51,455	509,690	(615,197)	638,608
Other income (expense):
Interest income	4,015	4,714	14,097	18,240
Interest expense	(49,429)	(60,405)	(124,340)	(121,381)
Change in fair value of warrant liabilities	135,402	(37,896)	445,454	181,201
Total other income (expense), net	89,988	(93,587)	335,211	78,060
Income (loss) before provision for income taxes	141,443	416,103	(279,986)	716,668
Provision for income taxes	(402,358)	(6,912)	(41,885)	(13,823)
Net income (loss)	(260,915)	409,191	(321,871)	702,845
Cumulative preferred dividends			(332,226)	(332,226)
Net income (loss) applicable to common shares	$ (260,915)	$ 409,191	$ (654,097)	$ 370,619
Net earnings (loss) per common share - basic (in dollars per share)	$ (0.01)	$ 0.01	$ (0.02)	$ 0.01
Weighted average number of common shares outstanding (in shares)	35,657,519	34,136,884	35,625,199	33,730,590
Net earnings (loss) per common share - diluted (in dollars per share)	$ (0.01)	$ 0.01	$ (0.02)	$ 0.01
Diluted weighted average number of common shares outstanding (in shares)	35,657,519	34,222,731	35,625,199	33,730,590

Consolidated Statement of Shareholders' Equity (Unaudited) - 6 months ended Dec. 31, 2014 - USD ($)	Preferred Stock Series A Convertible Preferred Stock	Common Stock	Accumulated Deficit	Total
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
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of fully-vested shares of common stock to employees and directors and vesting of shares under the 2011 Stock Incentive Plan		$ 604		604
Issuance of fully-vested shares of common stock to employees and directors and vesting of shares under the 2011 Stock Incentive Plan (in shares)		10,002
Issuance of fully-vested shares of common stock to employees and directors and vesting of shares under the 2012 Stock Incentive Plan		$ 14,478		14,478
Issuance of fully-vested shares of common stock to employees and directors and vesting of shares under the 2012 Stock Incentive Plan (in shares)		60,182
Issuance of fully-vested shares of common stock to employees and directors and vesting of shares under the 2013 Stock Incentive Plan		$ 155,262		155,262
Issuance of fully-vested shares of common stock to employees and directors and vesting of shares under the 2013 Stock Incentive Plan (in shares)		107,375
Charges incurred under the 2014 Stock Option Incentive Plan		$ 154,351		154,351
Retirement of common stock		$ (61,987)		(61,987)
Retirement of common stock (in shares)		(31,899)
Net loss			(321,871)	(321,871)
Balance at Dec. 31, 2014	$ 3,138,056	$ 224,472,905	$ (173,933,457)	$ 53,677,504
Balance (in shares) at Dec. 31, 2014	442,968	35,660,345

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
OPERATING ACTIVITIES:
Net income (loss)	$ (260,915)	$ 409,191	$ (321,871)	$ 702,845
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Charges incurred in connection with the vesting and issuance of common stock for employee and director compensation	185,891	104,464	324,695	188,856
(Gain) loss on disposal of property and equipment	(3,794)	(5,451)	(7,078)	9,484
Non-cash interest and amortization of debt discount				2,095
Bad debt expense, net	140,996	51,619	299,712	78,050
Depreciation	1,443,710	1,278,518	2,917,122	2,496,589
Amortization				21,953
Change in fair value of warrant liabilities	(135,402)	37,896	(445,454)	(181,201)
Deferred income taxes, net	423,379	6,912	62,906	13,823
Recognition of deferred gain from sale leaseback transactions	(215,097)		(403,424)
Changes in operating assets and liabilities:
Accounts receivable	(363,368)	344,611	(283,253)	1,049,726
Finance receivables	(778,212)	104,076	(1,533,674)	65,405
Inventory	(804,629)	45,903	(1,942,948)	123,920
Prepaid expenses and other current assets	(246,709)	(63,026)	(357,464)	(114,986)
Accounts payable	(2,338,176)	(68,081)	(2,459,444)	(1,315,867)
Accrued expenses	(87,130)	(503,280)	(273,021)	(485,516)
Income taxes payable			(21,021)
Net cash provided by (used in) operating activities	(3,039,456)	1,743,352	(4,444,217)	2,655,176
INVESTING ACTIVITIES:
Purchase of property and equipment	(18,879)	(10,601)	(50,369)	(25,227)
Purchase of property for rental program		(2,493,247)	(1,641,993)	(4,568,222)
Proceeds from sale of rental equipment under sale leaseback transactions			4,993,879
Proceeds from the sale of property and equipment	11,177	24,862	34,911	24,862
Net cash provided by (used in) investing activities	(7,702)	(2,478,986)	3,336,428	(4,568,587)
FINANCING ACTIVITIES:
Net proceeds from the exercise of common stock warrants and the retirement of common stock	(61,987)	1,679,433	(61,987)	1,765,087
Proceeds (repayment) from line of credit, net	(1,000,000)		(1,000,000)	1,000,000
Repayment of long-term debt	(72,856)	(100,700)	(168,467)	(177,677)
Net cash provided by (used in) financing activities	(1,134,843)	1,578,733	(1,230,454)	2,587,410
Net increase (decrease) in cash and cash equivalents	(4,182,001)	843,099	(2,338,243)	673,999
Cash and cash equivalents at beginning of period	10,916,078	5,811,900	9,072,320	5,981,000
Cash and cash equivalents at end of period	6,734,077	6,654,999	6,734,077	6,654,999
Supplemental disclosures of cash flow information :
Cash paid for interest	55,992	60,069	135,191	129,804
Depreciation expense allocated to cost of sales	1,282,860	1,151,643	2,578,305	2,233,158
Reclass of rental program property to inventory, net	14,384	7,544	18,649	13,117
Prepaid items financed with debt			103,125	101,850
Equipment and software acquired under capital lease	107,903		107,903	22,036
Disposal of property and equipment	$ 9,841	$ 44,512	51,903	$ 218,716
Disposal of property and equipment under sale leaseback transactions			$ 3,873,275

ACCOUNTING POLICIES	6 Months Ended
ACCOUNTING POLICIES	Dec. 31, 2014
Business Description And Accounting Policies [Abstract]
ACCOUNTING POLICIES	1. ACCOUNTING POLICIES 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. INTERIM FINANCIAL INFORMATION The accompanying unaudited consolidated financial statements of USA Technologies, Inc. have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements and therefore should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended June 30, 2014. In the opinion of management, all adjustments considered necessary for a fair presentation, consisting of normal recurring adjustments, have been included. Operating results for the three and six month periods ended December 31, 2014 are not necessarily indicative of the results that may be expected for the year ending June 30, 2015. The balance sheet at June 30, 2014 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. The Company had a net loss of $260,915 and $321,871 for the three and six month periods ended December 31, 2014, respectively. The Company had net income of $27,530,652 for the year ended June 30, 2014. Included in net income for the year ended June 30, 2014 was a benefit for income taxes of $27,255,398. Net income (loss) 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 on hand, and its line of credit (see Note 4), and may raise capital to meet its cash flow requirements including the issuance of Common Stock or debt financing. 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 December 31, 2014 and June 30, 2014, none of the cash 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. FINANCE RECEIVABLES The Company offers extended payment terms to certain customers for equipment sales under its QuickStart Program. In accordance with the Financial Accounting Standards Board Accounting Standards Codification® (“ASC”) Topic 840, “Leases”, agreements under the QuickStart 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. QuickStart 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. FAIR VALUE OF FINANCIAL INSTRUMENTS 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, 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. 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. REVENUE RECOGNITION Revenue from the sale or QuickStart lease 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”). JumpStart terms are typically 36 months and are cancellable with thirty to sixty days’ written notice. In accordance with ASC 840, “Leases”, the Company classifies the rental agreements as operating leases, with service fee revenue related to the leases included in license and transaction fees in the Consolidated Statements of Operations. Cost for the JumpStart revenues, which consists of depreciation expense on the JumpStart equipment, is included in cost of services in the Consolidated Statements of Operations. ePort equipment utilized by the JumpStart Program is included in property and equipment, net on the Consolidated Balance Sheet. 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. 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 consolidated 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 three and six months ended December 31, 2014 and 2013. 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.

FINANCE RECEIVABLES

6 Months Ended

Dec. 31, 2014

Receivables [Abstract]

FINANCE RECEIVABLES

2. FINANCE RECEIVABLES

Finance Receivables consist of the following:


	December 31,		June 30,
	2014		2014
	(unaudited)

Total finance receivables	$	2,006,261	$	472,587
Less current portion		362,898		119,793
Non-current portion of finance receivables	$	1,643,363	$	352,794

As of December 31, 2014 and June 30, 2014, 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 December 31, 2014
(unaudited)


Credit risk profile based on payment activity:
	Leases

Performing	$	1,999,444
Nonperforming		6,817
Total	$	2,006,261

Age Analysis of Past Due Finance Receivables
As of December 31, 2014
(unaudited)


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

Leases	$	1,571	$	1,191	$	4,055	$	6,817	$	1,999,444	$	2,006,261
Total	$	1,571	$	1,191	$	4,055	$	6,817	$	1,999,444	$	2,006,261

ACCRUED EXPENSES

6 Months Ended

Dec. 31, 2014

Accrued Liabilities [Abstract]

ACCRUED EXPENSES

3. ACCRUED EXPENSES

Accrued expenses consist of the following:


	December 31,		June 30,
	2014		2014
	(unaudited)

Accrued compensation and related sales commissions	$	311,303	$	545,110
Accrued professional fees		268,317		214,615
Accrued taxes and filing fees		629,375		640,958
Advanced customer billings		324,523		370,040
Accrued rent		116,514		155,712
Accrued other		178,920		175,538
	$	1,828,952	$	2,101,973

LINE OF CREDIT	6 Months Ended
LINE OF CREDIT	Dec. 31, 2014
Line Of Credit Facility [Abstract]
LINE OF CREDIT	4. LINE OF CREDIT The balance due on the Line of Credit was $4,000,000 and $5,000,000 at December 31, 2014 and June 30, 2014, respectively. At December 31, 2014, $3,000,000 was available under the Line of Credit. In September 2014, the Company and the Bank entered into a Ninth Amendment (“Ninth Amendment”) to the Loan and Security Agreement to change the definition of Adjusted EBITDA for the quarter ended September 30, 2014.

LONG-TERM DEBT

6 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

LONG-TERM DEBT

5. LONG-TERM DEBT

Long-term debt consists of the following:


	December 31,		June 30,
	2014		2014
	(unaudited)
Capital lease obligations	$	419,001	$	414,525
Loan agreements		46,336		8,251
		465,337		422,776
Less current portion		203,621		172,911
	$	261,716	$	249,865

During August 2014, the Company financed a portion of the premiums for various insurance policies totaling $103,125, due in nine monthly payments through April 2015 at an interest rate of 5.27%.

In October 2014, the Company entered into a capital lease for network equipment totaling $107,903 due in twelve quarterly installments of $9,831 through August 2017.

FAIR VALUE OF FINANCIAL INSTRUMENTS

6 Months Ended

Dec. 31, 2014

Fair Value Disclosures [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

6. FAIR VALUE OF FINANCIAL INSTRUMENTS

In accordance with the fair value hierarchy described in Note 1, the following table shows the fair value of the Company’s financial instrument that is required to be measured at fair value as of December 31, 2014 and June 30, 2014:


December 31, 2014 (unaudited)	Level 1		Level 2		Level 3		Total

Common stock warrant liability, warrants exercisable at $2.6058 from September 18, 2011 through September 18, 2016	$	-	$	-	$	139,755	$	139,755


June 30, 2014	Level 1		Level 2		Level 3		Total

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

As of December 31, 2014 and June 30, 2014, the Company held no Level 1 or Level 2 financial instruments.

As of December 31, 2014 and June 30, 2014, the fair values of the Company’s Level 3 financial instrument totaled $139,755 and $585,209, 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 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 three and six months ended December 31, 2014 and 2013.

The following table summarizes the changes in fair value of the Company’s Level 3 financial instruments for the six months ended December 31, 2014 and 2013:


	Six months ended
	December 31,
	2014			2013
	(unaudited)			(unaudited)

Beginning balance	$	(585,209	)	$	(650,638	)
Gain due to change in fair value of warrant liabilities, net		445,454			181,201
Ending balance	$	(139,755	)	$	(469,437	)

- 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	6 Months Ended
INCOME TAXES	Dec. 31, 2014
Income Tax Disclosure [Abstract]
INCOME TAXES	7. INCOME TAXES The Company has significant deferred tax assets, a substantial amount of which result from operating loss carryforwards. In periods prior to the quarter ended March 31, 2014, the Company had determined that it was more likely than not that the benefit of its deferred tax assets would not be realized and recorded a full valuation allowance against such assets. As of March 31, 2014 the Company determined that it was more likely than not that it would realize a substantial portion of its deferred tax assets and reduced its valuation allowance accordingly. For the three and six months ended December 31, 2014, an income tax provision of $402,358 and $41,885, respectively, was recorded; of those amounts, $395,605 is due to the decrease in the applicable tax rate utilized to tax affect the deferred tax assets that was caused by a state income tax law change. The remaining provision (benefit) of $6,753 and $(353,720) for the three and six months ended December 31, 2014, respectively, were based upon income (loss) before provision for income taxes using an estimated annual effective income tax rate of 69% for the fiscal year ending June 30, 2015 and the effect of a change in estimated state income tax rates, the effect of which is treated discretely. A provision for income taxes of $6,912 and $13,823 (all income deferred taxes) was recorded for the three and six months ended December 31, 2013, respectively. This provision for income taxes was not a function of nor related to income before income taxes because the Company had significant operating loss carryforwards available to negate any taxable income that would create current liabilities for income taxes. The provision for income taxes related to the amortization of indefinite life intangible assets and goodwill that were being amortized for income tax purposes but not for financial reporting purposes giving rise to a basis difference in such assets between financial and income tax reporting. The resulting deferred tax liabilities related to the amortization of indefinite life assets were not subject to offset against deferred tax assets with finite lives.

COMMON STOCK, COMMON STOCK OPTIONS AND WARRANTS

6 Months Ended

Dec. 31, 2014

Common Stock And Common Stock Warrants Abstract

COMMON STOCK, COMMON STOCK OPTIONS AND WARRANTS

8. COMMON STOCK, COMMON STOCK OPTIONS AND WARRANTS

Under the 2011 Stock Incentive Plan, the Company recorded no stock compensation expense and no shares of Common Stock vested during the three months ended December 31, 2014; and, the Company recorded $604 of stock compensation expense and 10,002 shares of Common Stock vested during the six months ended December 31, 2014 related to shares granted to Directors of the Company in July 2012.

Under the 2012 Stock Incentive Plan, the Company recorded stock compensation expense of $5,205 and $14,478 and 2,500 and 60,182 shares of Common Stock vested during the three and six months ended December 31, 2014, respectively. All of the expense and 5,000 of the shares vested in the six months ended December 31, 2014 related to a grant in 2014 to a non-executive employee. Additionally, 23,698 and 31,484 of the shares were issued in the six months ended December 31, 2014 related to payment to Directors for services on the Board of Directors in the fourth quarter of fiscal 2014 and to certain non-executive employees for fiscal 2014 performance, respectively.

Under the 2013 Stock Incentive Plan, the Company recorded stock compensation expense of $78,581 and $155,262 and 20,139 and 107,375 shares of Common stock were issued during the three and six months ended December 31, 2014. These amounts include expenses and issuances to Directors and non-executive employees, as well as expenses and issuances to the Company’s executives under the 2014 and expenses under the 2015 Long Term Stock Incentive Plans (“LTI Stock Plans”) as more fully described below. Stock compensation expense of $46,250 and $82,501 related to the vesting of shares for Directors in lieu of cash payment for services on the Board of Directors and 20,139 shares of Common Stock were issued during the three and six months ended December 31, 2014. No expense and 68,633 of shares were issued during the six months ended December 31, 2014 to certain non-executive employees for fiscal 2014 performance.

During the three and six months ended December 31, 2014, the Company recorded stock compensation expense of $8,587 and $17,174 for shares vesting June 30, 2015 and 2016 and issued 0 and 18,603 shares of Common Stock for shares vested on June 30, 2014, respectively, on account of the 2014 LTI Stock Plan under the 2013 Stock Incentive Plan.

On August 28, 2014, the Board of Directors approved the 2015 LTI Stock Plan covering Stephen P. Herbert, Chairman and Chief Executive Officer, and David M. DeMedio, Chief Financial Officer. 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 and adjusted EBITDA earned during the 2015 fiscal year as compared to adjusted EBITDA earned during the 2014 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: 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 (June 30, 2015); one-third on the first anniversary of issuance; and one-third on the second anniversary of issuance. The Company recorded stock compensation expense of $23,744 and $55,587 during the three and six months ended December 31, 2014, respectively, on account of the 2015 LTI Stock Plan.

During the three and six months ended December 31, 2014, non-executive employees of the Company cancelled shares of Common Stock for the payment of payroll taxes, including 16,849 and 31,899 shares of the Company’s Common Stock to satisfy $30,834 and $61,987 of related payroll obligations, respectively.

During the three and six months ended December 31, 2013, the Company recorded stock compensation expense of $104,464 and $188,856 and 70,013 and 132,696 shares of Common Stock were issued, respectively; $60,064 and $121,336 of expenses related to compensation for Directors of the Company; $44,401 and $64,140 of expense related to compensation of Company executives; and, a reversal of compensation expense of $0 and $5,527 for non-executive employees of the Company for the three and six months ended December 31, 2013, respectively.

During the three and six months ended December 31, 2013, executive officers exercised their rights to cancel shares of Common Stock awarded to them under prior employment agreements and the Special Equity Plan granted to an executive officer in September 2012 for the payment of payroll taxes, including 21,179 and 28,558 shares of the Company’s Common Stock to satisfy $33,429 and $47,375 of related payroll obligations, respectively.

COMMON STOCK OPTIONS

On August 28, 2014, the Board of Directors awarded options to purchase common stock under the Company’s 2014 Stock Option Incentive Plan to each of Messrs. Herbert and DeMedio.

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.

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 fair value of options granted during September 2014 was estimated at the grant date using the following weighted average assumptions:


		September 2014
Expected volatility		79%
Expected life		7 years
Expected dividends		0.00%
Risk-free interest rate		2.04%

There were no options granted during the three months ended December 31, 2014 or the three and six months ended December 31, 2013. During the three and six months ended December 31, 2014, the Company recorded compensation expense of $74,789 and $99,719, respectively, related to the stock options granted to the executive officers of the company in August 2014 under the 2014 Stock Option Incentive Plan.

For the three and six months ended December 31, 2014, the Company recorded compensation expense of $27,316 and $54,632, respectively, for stock options granted in the fiscal year ended June 30, 2014 to its non-employee Directors under the 2014 Stock Option Incentive Plan.

COMMON STOCK WARRANTS

No warrants were issued, exercised or expired during the three and six months ended December 31, 2014. Warrants were exercised during the three and six months ended December 31, 2013, resulting in the issuance of 1,972,085 and 2,090,226, respectively, shares of Common Stock at $1.13 per share. On December 31, 2013, warrants to purchase 58,527 shares of Common stock, exercisable at $1.13 per share, expired unexercised. On September 14, 2013 warrants to purchase 903,955 shares of Common Stock, exercisable at $5.90 per share, expired unexercised.

COMMITMENTS AND CONTINGENCIES

6 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

9. COMMITMENTS AND CONTINGENCIES

LEASE COMMITMENTS

In June 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. As of June 30, 2014, Varilease completed the purchase from the Company, the ePort equipment under the first two of the Sale Leaseback Agreements as described in our Annual Report on Form 10-K for the year ended June 30, 2014.

In September 2014, Varilease completed the purchase from the Company of the ePort equipment described in the last four of the Sale Leaseback Agreements.

Upon the completion of the sale under these agreements, the Company computed a gain on the sale of its ePort equipment, which is deferred and will be amortized in proportion to the related gross rental charged to expense over the lease terms in accordance with the FASB topic ASC 840-40, “Sale Leaseback Transactions”. 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. The Company is accounting for the Sale Leaseback as an operating lease and is obligated to pay to Varilease a base monthly rental for this equipment during the 36-month lease term.

Upon the completion of the sale, the Company computed a gain on the sale of its ePort equipment as follows:


	Year ended			Six months ended
	June 30, 2014			December 31, 2014			Total
				(unaudited)

Rental equipment sold, cost	$	1,918,920		$	3,873,275		$	5,792,195
Rental equipment sold, accumulated depreciation upon sale		(76,032	)		(331,069	)		(407,101	)
Rental equipment sold, net book value		1,842,888			3,542,206			5,385,094
Proceeds from sale		2,995,095			4,993,879			7,988,974
Gain on sale of rental equipment	$	1,152,207		$	1,451,673		$	2,603,880

The following table summarizes the changes in deferred gain for the six months ended December 31, 2014 from the sale leaseback transactions:


	Six months ended
	December 31, 2014
	(unaudited)

Beginning balance, June 30, 2014	$	1,142,685
Gain on sale of rental equipment		1,451,673
Recognition of deferred gain		(403,424	)
Ending balance, December 31, 2014		2,190,934
Less current portion		860,390
Non-current portion of deferred gain	$	1,330,544

The Company is obligated to pay Varilease a base monthly rental of approximately $220,000 for this equipment during the 36-month lease term. Future minimum lease payments subsequent to December 31, 2014 are as follows:


	Operating Leases
	from Sale Leaseback
	(unaudited)

2015 (remaining six months)	$	1,320,578
2016		2,641,155
2017		2,641,155
2018		137,731
Total minimum lease payments	$	6,740,619

2015 STI PLAN

On August 28, 2014, the Board of Directors approved the Fiscal Year 2015 Short-Term Incentive Plan (the “2015 STI Plan”) covering Stephen P. Herbert, Chairman and Chief Executive Officer, and David M. DeMedio, Chief Financial Officer.

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 and certain annual specific performance goals relating to the executive officer which are to be established by the Compensation Committee.

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.

During the three and six months ended December 31, 2014, the Company recorded expense of $19,737 and $46,198 and a corresponding liability, respectively, for the 2015 STI Plan.

LITIGATION

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

On December 30, 2014, the Company settled a legal action brought in connection with a customer billing dispute. Under the settlement, the Company agreed to pay approximately $690,000. Approximately $280,000 of this amount was recorded in fiscal 2014 and $410,000 of this amount was recorded in the three months ended September 30, 2014 and was reflected in Cost of Services in the Consolidated Statements of Operations.

SUBSEQUENT EVENTS	6 Months Ended
SUBSEQUENT EVENTS	Dec. 31, 2014
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	10. SUBSEQUENT EVENTS In February 2015, the Company entered into a Purchase and Sale Agreement (the “QS Sale Agreement”) with an equipment leasing company related to the Company’s QuickStart Program (Notes 1 and 2). Under the QS Sale Agreement, the Company received $1,752,717 in exchange for assigning to the leasing company its rights to all of the future lease payments under certain existing QuickStart leases between the Company and its customers. Under a separate Vendor Agreement between the Company and the same equipment leasing company, and subject to the terms and conditions thereof, the Company may in the future sell its ePort equipment to the leasing company, and the leasing company would enter into a QuickStart lease directly with the customer.

ACCOUNTING POLICIES (Policies)	6 Months Ended
ACCOUNTING POLICIES (Policies)	Dec. 31, 2014
Organization, Consolidation, Basis Of Presentation, 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 December 31, 2014 and June 30, 2014, none of the cash 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.
FINANCE RECEIVABLES	FINANCE RECEIVABLES The Company offers extended payment terms to certain customers for equipment sales under its QuickStart Program. In accordance with the Financial Accounting Standards Board Accounting Standards Codification® (“ASC”) Topic 840, “Leases”, agreements under the QuickStart 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. QuickStart 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.
FAIR VALUE OF FINANCIAL INSTRUMENTS	FAIR VALUE OF FINANCIAL INSTRUMENTS 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, 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.
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.
REVENUE RECOGNITION	REVENUE RECOGNITION Revenue from the sale or QuickStart lease 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”). JumpStart terms are typically 36 months and are cancellable with thirty to sixty days’ written notice. In accordance with ASC 840, “Leases”, the Company classifies the rental agreements as operating leases, with service fee revenue related to the leases included in license and transaction fees in the Consolidated Statements of Operations. Cost for the JumpStart revenues, which consists of depreciation expense on the JumpStart equipment, is included in cost of services in the Consolidated Statements of Operations. ePort equipment utilized by the JumpStart Program is included in property and equipment, net on the Consolidated Balance Sheet.
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.
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 consolidated 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 three and six months ended December 31, 2014 and 2013.
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.

FINANCE RECEIVABLES (Tables)

6 Months Ended

Dec. 31, 2014

Receivables [Abstract]

Schedule of finance receivables

	December 31,		June 30,
	2014		2014
	(unaudited)

Total finance receivables	$	2,006,261	$	472,587
Less current portion		362,898		119,793
Non-current portion of finance receivables	$	1,643,363	$	352,794

Schedule of credit quality indicators

Credit Quality Indicators
As of December 31, 2014
(unaudited)


Credit risk profile based on payment activity:
	Leases

Performing	$	1,999,444
Nonperforming		6,817
Total	$	2,006,261

Schedule of age analysis of past due finance receivables

Age Analysis of Past Due Finance Receivables
As of December 31, 2014
(unaudited)


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

Leases	$	1,571	$	1,191	$	4,055	$	6,817	$	1,999,444	$	2,006,261
Total	$	1,571	$	1,191	$	4,055	$	6,817	$	1,999,444	$	2,006,261

ACCRUED EXPENSES (Tables)

6 Months Ended

Dec. 31, 2014

Accrued Liabilities [Abstract]

Schedule of accrued liabilities

	December 31,		June 30,
	2014		2014
	(unaudited)

Accrued compensation and related sales commissions	$	311,303	$	545,110
Accrued professional fees		268,317		214,615
Accrued taxes and filing fees		629,375		640,958
Advanced customer billings		324,523		370,040
Accrued rent		116,514		155,712
Accrued other		178,920		175,538
	$	1,828,952	$	2,101,973

LONG-TERM DEBT (Tables)

6 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

Schedule of long-term debt

	December 31,		June 30,
	2014		2014
	(unaudited)
Capital lease obligations	$	419,001	$	414,525
Loan agreements		46,336		8,251
		465,337		422,776
Less current portion		203,621		172,911
	$	261,716	$	249,865

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Dec. 31, 2014

Fair Value Disclosures [Abstract]

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

December 31, 2014 (unaudited)	Level 1		Level 2		Level 3		Total

Common stock warrant liability, warrants exercisable at $2.6058 from September 18, 2011 through September 18, 2016	$	-	$	-	$	139,755	$	139,755


June 30, 2014	Level 1		Level 2		Level 3		Total

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

Schedule of changes in fair value of Level 3 financial instruments

	Six months ended
	December 31,
	2014			2013
	(unaudited)			(unaudited)

Beginning balance	$	(585,209	)	$	(650,638	)
Gain due to change in fair value of warrant liabilities, net		445,454			181,201
Ending balance	$	(139,755	)	$	(469,437	)

COMMON STOCK, COMMON STOCK OPTIONS AND WARRANTS (Tables)

6 Months Ended

Dec. 31, 2014

Common Stock Warrants and Options [Abstract]

Schedule of stock option granted weighted average assumptions

		September 2014
Expected volatility		79%
Expected life		7 years
Expected dividends		0.00%
Risk-free interest rate		2.04%

COMMITMENTS AND CONTINGENCIES (Tables)

6 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Schedule of gain on sale of ePort equipment

	Year ended			Six months ended
	June 30, 2014			December 31, 2014			Total
				(unaudited)

Rental equipment sold, cost	$	1,918,920		$	3,873,275		$	5,792,195
Rental equipment sold, accumulated depreciation upon sale		(76,032	)		(331,069	)		(407,101	)
Rental equipment sold, net book value		1,842,888			3,542,206			5,385,094
Proceeds from sale		2,995,095			4,993,879			7,988,974
Gain on sale of rental equipment	$	1,152,207		$	1,451,673		$	2,603,880

Schedule of changes in deferred gain from sale leaseback transactions

	Six months ended
	December 31, 2014
	(unaudited)

Beginning balance, June 30, 2014	$	1,142,685
Gain on sale of rental equipment		1,451,673
Recognition of deferred gain		(403,424	)
Ending balance, December 31, 2014		2,190,934
Less current portion		860,390
Non-current portion of deferred gain	$	1,330,544

Schedule of future minimum lease payments operating leases

	Operating Leases
	from Sale Leaseback
	(unaudited)

2015 (remaining six months)	$	1,320,578
2016		2,641,155
2017		2,641,155
2018		137,731
Total minimum lease payments	$	6,740,619

ACCOUNTING POLICIES (Detail Textuals) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
ACCOUNTING POLICIES (Detail Textuals) - USD ($)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Jun. 30, 2014
Business Description And Accounting Policies [Abstract]
Net income (loss)	$ (260,915)	$ 409,191	$ (321,871)	$ 702,845	$ 27,530,652
Provision for income taxes	$ 402,358	$ 6,912	$ 41,885	$ 13,823	$ 27,255,398
Original maturities of all highly liquid investments represent cash equivalents			three months or less
Term of rental program			36 months
Notice period for termination of lease			thirty to sixty days

- Definition

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

+ References + Details

FINANCE RECEIVABLES - Information regarding finance receivables (Details) - USD ($)	Dec. 31, 2014	Jun. 30, 2014
Receivables [Abstract]
Total finance receivables	$ 2,006,261	$ 472,587
Less current portion	362,898	119,793
Non-current portion of finance receivables	$ 1,643,363	$ 352,794

FINANCE RECEIVABLES - Credit risk profile based on payment activity (Details 1) - USD ($)	Dec. 31, 2014	Jun. 30, 2014
Financing Receivable, Recorded Investment [Line Items]
Total finance receivables	$ 2,006,261	$ 472,587
Leases
Financing Receivable, Recorded Investment [Line Items]
Total finance receivables	2,006,261
Leases \| Performing
Financing Receivable, Recorded Investment [Line Items]
Total finance receivables	1,999,444
Leases \| Nonperforming
Financing Receivable, Recorded Investment [Line Items]
Total finance receivables	$ 6,817

FINANCE RECEIVABLES - Age analysis of past due finance receivables (Details 2) - USD ($)	Dec. 31, 2014	Jun. 30, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60 Days Past Due	$ 1,571
61-90 Days Past Due	1,191
Greater than 90 Days Past Due	4,055
Total Past Due	6,817
Current	1,999,444
Total finance receivables	2,006,261	$ 472,587
Leases
Financing Receivable, Recorded Investment, Past Due [Line Items]
31-60 Days Past Due	1,571
61-90 Days Past Due	1,191
Greater than 90 Days Past Due	4,055
Total Past Due	6,817
Current	1,999,444
Total finance receivables	$ 2,006,261

ACCRUED EXPENSES - Information regarding accrued expenses (Details) - USD ($)	Dec. 31, 2014	Jun. 30, 2014
Accrued Liabilities [Abstract]
Accrued compensation and related sales commissions	$ 311,303	$ 545,110
Accrued professional fees	268,317	214,615
Accrued taxes and filing fees	629,375	640,958
Advanced customer billings	324,523	370,040
Accrued rent	116,514	155,712
Accrued other	178,920	175,538
Accrued expenses, Total	$ 1,828,952	$ 2,101,973

LINE OF CREDIT (Detail Textuals) - USD ($)	Dec. 31, 2014	Jun. 30, 2014
Line Of Credit Facility [Abstract]
Line of credit	$ 4,000,000	$ 5,000,000
Line of credit available	$ 3,000,000

- Definition

The carrying value as of the balance sheet date of the current portion of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

LONG-TERM DEBT - Long-term debt (Details) - USD ($)	Dec. 31, 2014	Jun. 30, 2014
Debt Instrument [Line Items]
Long-term debt	$ 465,337	$ 422,776
Less current portion	203,621	172,911
Long-term debt, less current portion	261,716	249,865
Capital Lease Obligations
Debt Instrument [Line Items]
Long-term debt	419,001	414,525
Loan agreements
Debt Instrument [Line Items]
Long-term debt	$ 46,336	$ 8,251

LONG-TERM DEBT (Detail Textuals) - USD ($)	Oct. 31, 2014	Aug. 31, 2014
Debt Instrument [Line Items]
Capital lease for network equipment totaling	$ 107,903
Twelve quarterly installments	$ 9,831
Financing for insurance policies premium
Debt Instrument [Line Items]
Payment of finance long term debt		$ 103,125
Interest rate of finance long term debt		5.27%

FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair value of the company financial instruments that are required to be measured at fair value (Details) - USD ($)	Dec. 31, 2014	Jun. 30, 2014
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
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]
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]
Common stock warrant liability, warrants exercisable at $2.6058 from September 18, 2011 through September 18, 2016	139,755	585,209
Total
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Common stock warrant liability, warrants exercisable at $2.6058 from September 18, 2011 through September 18, 2016	$ 139,755	$ 585,209

FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair value of the company financial instruments that are required to be measured at fair value (Parentheticals) (unaudited) (Details) - $ / Warrant	Dec. 31, 2014	Jun. 30, 2014
Fair Value Disclosures [Abstract]
Common stock warrant liability, warrants exercisable at through September 14, 2013, exercise price (in dollars 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 ($)	6 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ (585,209)	$ (650,638)
Gain due to change in fair value of warrant liabilities, net	445,454	181,201
Ending balance	$ (139,755)	$ (469,437)

FAIR VALUE OF FINANCIAL INSTRUMENTS (Detail Textuals) - Level 3 - USD ($) shares in Millions	1 Months Ended
	Mar. 31, 2011	Dec. 31, 2014	Jun. 30, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair values of financial instrument		$ 139,755	$ 585,209
Purchase of company's common stock (in shares)	3.9
Valuation method used to determine fair value	Proprietary valuation models

INCOME TAXES (Detail Textuals) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
INCOME TAXES (Detail Textuals) - USD ($)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Jun. 30, 2014
Income Tax Disclosure [Abstract]
Provision for income taxes	$ (402,358)	$ (6,912)	$ (41,885)	$ (13,823)	$ (27,255,398)
Amounts due to decrease in applicable tax rate			395,605
Remaining provision/ (benefit)	$ 6,753		$ (353,720)
Estimated annual effective tax rate			69.00%

COMMON STOCK, COMMON STOCK OPTIONS AND WARRANTS (Details)	3 Months Ended
	Sep. 30, 2014
Common Stock Warrants and Options [Abstract]
Expected volatility	79.00%
Expected life	7 years
Expected dividends	0.00%
Risk-free interest rate	2.04%

COMMON STOCK, COMMON STOCK OPTIONS AND WARRANTS (Detail Textuals) - USD ($)	3 Months Ended				6 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013	Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense				$ 104,464			$ 188,856
Number of common stock issued (in shares)				70,013			132,696
Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expenses related to shares issued to directors and executives				$ 60,064			$ 121,336
Executive officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expenses related to shares issued to directors and executives				44,401			64,140
Non-executive employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Reversal of grants due to performance targets not met				$ 0			$ 5,527
2011 Stock Incentive Plan (the "2011 Plan")
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense					$ 604
Number of common stock issued (in shares)					10,002
2012 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense		$ 5,205			$ 14,478
Number of common stock issued (in shares)		2,500			60,182
2012 Stock Incentive Plan \| Directors in lieu of cash payment
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock issued (in shares)						23,698
2012 Stock Incentive Plan \| Non-executive employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock issued (in shares)						31,484
Granted					$ 5,000
2013 Stock Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense	$ 78,581				$ 155,262
Number of common stock issued (in shares)	20,139				107,375
2013 Stock Incentive Plan \| 2014 LTI Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense	$ 8,587				$ 17,174
Number of common stock issued (in shares)			0			18,603
2013 Stock Incentive Plan \| 2015 LTI Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense	23,744				55,587
2013 Stock Incentive Plan \| Directors in lieu of cash payment
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense	$ 46,250				$ 82,501
Number of common stock issued (in shares)	20,139				20,139
2013 Stock Incentive Plan \| Non-executive employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock issued (in shares)					68,633
2014 Stock Incentive Plan \| Executive officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense	$ 74,789				$ 99,719
2014 Stock Incentive Plan \| Non-executive employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock compensation expense	$ 27,316				$ 54,632
Special Equity Plan \| 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)				21,179			28,558
Payment of payroll obligations				$ 33,429			$ 47,375
Special Equity Plan \| Non-executive employee
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock shares cancelled to pay payroll taxes (in shares)	16,849				31,899
Payment of payroll obligations	$ 30,834				$ 61,987

COMMON STOCK, COMMON STOCK OPTIONS AND WARRANTS (Detail Textuals 1) - 2014 LTI Stock Plan	6 Months Ended
	Dec. 31, 2014 USD ($)
Mr. Herbert \| 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	$ 341,227
Base salary percentage of awarded shares	100.00%
Mr. Herbert \| 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	$ 682,454
Base salary percentage of awarded shares	200.00%
Mr. DeMedio \| 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	$ 178,406
Base salary percentage of awarded shares	75.00%
Mr. DeMedio \| 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	$ 356,812
Base salary percentage of awarded shares	150.00%

COMMON STOCK, COMMON STOCK OPTIONS AND WARRANTS (Details Textuals 2) - $ / shares	Dec. 31, 2014	Dec. 31, 2013	Sep. 13, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized to be issued as stock award	1,972,085	2,090,226
Exercise price per share of authorized shares	$ 1.13	$ 1.13
Number of warrants called to purchase common stock		58,527	903,955
Exercise price of warrants called to purchase common stock		$ 1.13	$ 5.90
Incentive stock options \| Mr. Herbert
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized to be issued as stock award	55,555
Exercise price per share of authorized shares	$ 1.80
Incentive stock options \| Mr. DeMedio
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized to be issued as stock award	33,333
Exercise price per share of authorized shares	$ 1.80
Non qualified stock options \| Mr. Herbert
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized to be issued as stock award	150,000
Exercise price per share of authorized shares	$ 1.80
Non qualified stock options \| Mr. DeMedio
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized to be issued as stock award	90,000
Exercise price per share of authorized shares	$ 1.80

COMMITMENTS AND CONTINGENCIES - Future minimum lease payments under capital leases and non-cancellable operating leases (Details) - USD ($)	6 Months Ended	12 Months Ended
	Dec. 31, 2014	Jun. 30, 2014
Sale Leaseback Transaction [Line Items]
Rental equipment sold, cost	$ 3,873,275	$ 1,918,920
Rental equipment sold, accumulated depreciation upon sale	(331,069)	(76,032)
Rental equipment sold, net book value	3,542,206	1,842,888
Proceeds from sale	4,993,879	2,995,095
Gain on sale of rental equipment	1,451,673	$ 1,152,207
ePort equipment
Sale Leaseback Transaction [Line Items]
Rental equipment sold, cost	5,792,195
Rental equipment sold, accumulated depreciation upon sale	(407,101)
Rental equipment sold, net book value	5,385,094
Proceeds from sale	7,988,974
Gain on sale of rental equipment	$ 2,603,880

COMMITMENTS AND CONTINGENCIES (Details 1) - USD ($)	3 Months Ended	6 Months Ended	12 Months Ended
COMMITMENTS AND CONTINGENCIES (Details 1) - USD ($)	Dec. 31, 2014	Dec. 31, 2014	Jun. 30, 2014
Commitments and Contingencies Disclosure [Abstract]
Beginning balance, June 30, 2014		$ 1,142,685
Gain on sale of rental equipment		1,451,673	$ 1,152,207
Recognition of deferred gain	$ (215,097)	(403,424)
Ending balance, December 31, 2014	2,190,934	2,190,934	1,142,685
Less current portion	860,390	860,390	380,895
Non-current portion of deferred gain	$ 1,330,544	$ 1,330,544	$ 761,790

COMMITMENTS AND CONTINGENCIES (Details 2)	Dec. 31, 2014 USD ($)
Minimum Lease Payments, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract]
2015 (remaining six months)	$ 1,320,578
2016	2,641,155
2017	2,641,155
2018	137,731
Total minimum lease payments	$ 6,740,619

COMMITMENTS AND CONTINGENCIES (Detail Textuals) - USD ($)	1 Months Ended	3 Months Ended		6 Months Ended	12 Months Ended
	Aug. 28, 2014	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2014	Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Agreement lease term				36-month
Base monthly rental				$ 220,000
Obligations With Customer Billing Dispute
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Estimated obligations in connection with customer billing dispute included in Accounts Payable		$ 690,000		690,000
Amount of obligation reflected in cost of services			$ 410,000		$ 280,000
2015 Short-Term Incentive Plan (the "2015 STI Plan")
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated short term incentive plan recorded expense		$ 19,737		$ 46,198
2015 Short-Term Incentive Plan (the "2015 STI Plan") \| Mr. Stephen P. Herbert \| 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	$ 136,500
Base salary percentage of cash bonus	40.00%
2015 Short-Term Incentive Plan (the "2015 STI Plan") \| Mr. Stephen P. Herbert \| 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	$ 273,000
Base salary percentage of cash bonus	80.00%
2015 Short-Term Incentive Plan (the "2015 STI Plan") \| Mr. DeMedio \| 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	$ 59,469
Base salary percentage of cash bonus	25.00%
2015 Short-Term Incentive Plan (the "2015 STI Plan") \| Mr. DeMedio \| 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	$ 118,938
Base salary percentage of cash bonus	50.00%

SUBSEQUENT EVENTS (Detail Textuals)	1 Months Ended
SUBSEQUENT EVENTS (Detail Textuals)	Feb. 28, 2015 USD ($)
Subsequent Event \| QS Sale Agreement
Subsequent Event [Line Items]
Amount received to exchange for assign to lease	$ 1,752,717