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ACCOUNTING POLICIES

2. ACCOUNTING POLICIES

CONSOLIDATION

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. 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

The Company maintains its cash in bank deposit accounts, which may exceed federally insured limits at times.

ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS

Accounts receivable include amounts due to the Company for sales of equipment, other amounts due from customers, merchant service receivables, and unbilled amounts due from customers, net of the allowance for uncollectible accounts.

The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments, including from a shortfall in the customer transaction fund flow from which the Company would normally collect amounts due.

The allowance is determined through an analysis of various factors including the aging of the accounts receivable, the strength of the relationship with the customer, the capacity of the customer transaction fund flow to satisfy the amount due from the customer, an assessment of collection costs and other factors. The allowance for doubtful accounts receivable is management’s best estimate as of the respective reporting date. 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 recorded 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. Finance receivables 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, Net

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, Net

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

The Company’s intangible assets include goodwill, trademarks, non-compete agreements, brand, developed technology and customer relationships.

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. 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.

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 accounted for in accordance with ASC 820 “Fair Value Measurement.” Under ASC 820 the Company uses inputs from the three levels of the fair value hierarchy to measure its financial assets and liabilities. 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 accounts receivable, short-term 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 agreements and the long-term portion of its finance receivables approximate their carrying value as such instruments are at market rates currently available to the Company.

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, if applicable, 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 and license and transaction fee refunds on a monthly basis. The company makes an adjustment for rebates and product returns.

ePort hardware is available to customers under the QuickStart program pursuant to which the customer would enter into a five-year non-cancelable lease with either the Company or a third-party financing company for the devices. The Company utilizes its best estimate of selling price when calculating the revenue to be recorded under these leases. The leases qualify for sales type lease accounting. Accordingly, the Company recognizes a portion of lease payments as interest income for leases not placed with a third-party financing company. At the end of the lease period, the customer would have the option to purchase the device at its residual value.

PREFERRED STOCK

The Company adopted the provisions of ASU 2014-16 in determining whether the Company’s Series A Convertible Preferred Stock (“preferred stock”) is more equity-like or debt-like, and whether derivatives embedded in the preferred stock, if any, must be bifurcated and accounted for separately from its host contract. Based upon management’s review of the preferred stock features, management has determined that the preferred stock is more equity-like and that the embedded derivatives do not require bifurcation. As such, the adoption of this standard did not have a material impact on the company's financial statements.

ACCOUNTING FOR EQUITY AWARDS

In accordance with the ASC Topic 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 ASC Topic 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. Accordingly, tax positions must meet a “more-likely-than-not” recognition threshold at the effective date to be recognized upon the adoption of ASC Topic 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 that, 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 nine months ended March 31, 2017 and 2016.

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 are calculated by dividing income (loss) applicable to common shares by the weighted average common shares outstanding for the period plus the effect of potential common shares unless such effect is anti-dilutive.

SOFTWARE DEVELOPMENT COSTS

The Company follows the ASC Topic 350-40, “Accounting for the Cost of Computer Software Developed or obtained for Internal Use”, which provides for guidance for what costs can be capitalized for internal use.

Capitalized costs for internal-use software are included in fixed assets in the consolidated balance sheet and are amortized over three years. Costs incurred during the preliminary project along with post-implementation stages of internal use computer software development and costs incurred to maintain existing product offerings are expensed as incurred. The capitalization and ongoing assessment of recoverability of development costs require considerable judgment by management with respect to certain external factors, including, but not limited to, technological and economic feasibility and estimated economic life.

RECENT ACCOUNTING PRONOUNCEMENTS

The Company is evaluating whether the effects of the following recent accounting will have a material effect on the Company’s consolidated financial position, results of operations or cash flows.

In January 2017, the FASB issued ASU 2017-04 – “Intangibles-Goodwill and Other (Topic 350): Simplifying the test for Goodwill Impairment.”

RECLASSIFICATION

Commencing with the June 30, 2016 financial statements, the Company changed the manner in which it presents certain unfunded finance receivables in its consolidated balance sheets and the related statements of cash flows. These finance receivables have yet to be and are expected to be funded by a third-party funding source. The previous accounting classification recorded these amounts as accounts receivable in the consolidated balance sheets and the related statements of cash flows. The impact of this change on the Statement of Cash Flows is as follows:

	Three months ended March 31, 2016						Nine months ended March 31, 2016
	Accounts Receivable			Finance Receivables			Accounts Receivable			Finance Receivables
Per Original Statement of Cash Flows	$	(1,872	)	$	(154	)	$	(3,352	)	$	547
Reclass of Unfunded Leases, beginning of period (starting BS)		(2,096	)		2,096			(1,026	)		1,026
Reclass of Finance Receivables, end of period		2,308			(2,308	)		2,308			(2,308	)
Impact from the reclassification		212			(212	)		1,282			(1,282	)
Adjusted Statement of Cash Flows	$	(1,660	)	$	(366	)	$	(2,070	)	$	(735	)

FINANCE RECEIVABLES (Q3)

9 Months Ended

12 Months Ended

Mar. 31, 2017

Jun. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

3. FINANCE RECEIVABLES

Finance receivables consist of the following:

($ in thousands)	March 31, 2017		June 30, 2016
		(unaudited)
Total finance receivables	$	9,605		$	7,306
Less current portion		2,057			3,588
Non-current portion of finance receivables	$	7,548		$	3,718

The Company collects monthly payments of its finance receivables from the customers’ transaction fund flow. Accordingly, as the fund flow from these customers’ transactions is generally sufficient to satisfy the amount due to the Company, the risk of loss is considered low and the Company has provided for an allowance for credit losses for finance receivables of $25 thousand and zero as of March 31, 2017 and June 30, 2016, respectively. The number of Finance Receivables that are in a loss position is nine and zero as of March 31, 2017 and June 30, 2016 respectively.

Credit Quality Indicators

Credit risk profile based on payment activity: ($ in thousands)	March 31, 2017		June 30, 2016
		(unaudited)
Performing	$	9,527		$	7,174
Nonperforming		78			132
Total	$	9,605		$	7,306

Age Analysis of Past Due Finance Receivables

As of March 31, 2017

($ in thousands)		31 – 60 Days Past Due				61 – 90 DaysPast Due				Greater than 90 Days Past Due				Total Past Due				Current				Total Finance Receivables
QuickStart Leases		$	31			$	1			$	21			$	53			$	9,552			$	9,605

Age Analysis of Past Due Finance Receivables

As of June 30, 2016

($ in thousands)		31 – 60 Days Past Due				61 – 90 Days Past Due				Greater than 90 Days Past Due				Total Past Due				Current				Total Finance Receivables
QuickStart Leases		$	98			$	31			$	3			$	132			$	7,174			$	7,306

5. FINANCE RECEIVABLES

Finance receivables consist of the following:

($ in thousands)	June 30, 2016			June 30, 2015

Total finance receivables		$	7,306		$	4,639
Less current portion			3,588			941
Non-current portion of finance receivables		$	3,718		$	3,698

Credit quality indicators consist of the following:

Credit Quality Indicators

	June 30, 2016		June 30, 2015
($ in thousands)
Performing	$	7,174	$	4,619
Nonperforming		132		20
Total	$	7,306	$	4,639

Age Analysis of Past Due Finance Receivables

As of June 30, 2016

($ in thousands)	31 – 60 Days Past Due		61 – 90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Total Finance Receivables

QuickStart Leases	$	98	$	31	$	3	$	132	$	7,174	$	7,306

Age Analysis of Past Due Finance Receivables

As of June 30, 2015

($ in thousands)	Days Past 31 – 60 Due		61 – 90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Total Finance Receivables

QuickStart Leases	$	-	$	16	$	5	$	21	$	4,618	$	4,639

Finance receivables due for each of the fiscal years following June 30, 2016 are as follows:

($ in thousands)

2017	$	3,588
2018		1,246
2019		1,246
2020		944
2021 and beyond		282
	$	7,306

GOODWILL AND INTANGIBLE ASSETS (Q3)

9 Months Ended

12 Months Ended

Mar. 31, 2017

Jun. 30, 2016

4. GOODWILL AND INTANGIBLES

On January 15, 2016, the Company executed an Asset Purchase Agreement with VendScreen, Inc (“VendScreen”) a Portland, Oregon based developer of vending industry cashless payment technology, by which it acquired substantially all of VendScreen’s assets and assumed specified liabilities, for a cash payment of $5.62 million and the corresponding goodwill recorded was $4.0 million. In December 2016, the company finalized the opening balance sheet of VendScreen and recorded a reduction of goodwill for $211 thousand and increased finance receivables for the same amount. The final goodwill amount related to VendScreen opening balance sheet is $3.8 million.

The following table summarizes the final purchase price allocation to reflect the fair values of the assets acquired and liabilities assumed at the date of acquisition.

Consideration:
Fair value of total consideration paid in cash	$	5,625

Acquisition related costs:	$	842

Recognized amounts of identifiable assets acquired and liabilities assumed:

Financial Assets:
Accounts Receivable		3
Finance Receivables		839
Other Current Assets		20
Deferred Income Taxes		18
		880

Property, Plant & Equipment		81

Identifiable Intangible Assets:
Developed Technology		639
Customer Relationships		149
Brand		95
Noncompete Agreement		2
Fair Value of Intangible Assets		885

Financial Liabilities
Accrued Liabilities	$	(50	)

Total identifiable net assets	$	1,796

Goodwill	$	3,829

Total Fair Value	$	5,625

During the three and nine months ending March 31, 2017, there was $45 thousand and $132 thousand, respectively, of amortization expense relating to acquired intangible assets. There was $44 thousand amortization expense relating to acquired intangible assets during the three and nine months ended March 31, 2016. Intangible asset balances consisted of the following:

($ in thousands)	Balance June 30, 2016		Additions/ Adjustments			Amortization			Balance March 31, 2017		Amortization Period
Intangible Assets:
Non-compete agreements	$	1	$	—		$	(1	)	$	—	2 years
Brand		79		—			(24	)		55	3 years
Developed technology		576		—			(96	)		480	5 years
Customer relationships		142		—			(11	)		131	10 years
Total Intangible Assets	$	798	$	—		$	(132	)	$	666

Goodwill	$	11,703	$	(211	)	$	—		$	11,492	Indefinite

7. GOODWILL AND INTANGIBLE ASSETS

Amortization expense relating to all acquired intangible assets was approximately $87 thousand, $0 and $22 thousand during each of the years ended June 30, 2016, 2015 and 2014, respectively. Intangible asset balances consisted of the following:

	Beginning		Year ended June 30, 2016						Ending
($ in thousands)	Balance		Additions/						Balance		Amortization
	July 1, 2015		Adjustments			Amortization			June 30, 2016		Period
Intangible Assets:
Trademarks - Indefinite	$	432	$	(432	)(1)	$	-		$	-	Indefinite
Non-compete agreements		-		2			(1	)		1	2 years
Brand		-		95			(16	)		79	3 years
Developed technology		-		639			(63	)		576	5 years
Customer relationships		-		149			(7	)		142	10 years
Total Intangible Assets	$	432	$	453		$	(87	)	$	798

Goodwill		7,663		4,040			-			11,703	Indefinite

Total Intangible Assets & Goodwill	$	8,095	$	4,493		$	(87	)	$	12,501

	Beginning		Year ended June 30, 2015				Ending
($ in thousands)	Balance		Additions/				Balance		Amortization
	July 1, 2014		Adjustments		Amortization		June 30, 2015		Period
Intangible assets:
Trademarks - Indefinite	$	432		-		-	$	432	Indefinite
Total Intangible Assets	$	432	$	-	$	-	$	432

Goodwill		7,663		-		-		7,663	Indefinite

Total	$	8,095	$	-	$	-	$	8,095

(1)

The Company’s test for impairment of its indefinite-lived trademarks consists of the trademarks: 1) VendingMiser, 2) CoolerMiser, 3) PlugMiser and 4) SnackMiser. As a result of its testing in fiscal years ended June 30, 2015 and 2014 the Company determined that no impairment had occurred. In the testing in fiscal year 2016, the Company determined that the sum of the expected discounted cash flows attributable to the trademarks was less than its carrying value of $432 thousand, and that an impairment write-down was required. The fair value of the trademarks was determined by a method known as “relief from royalty”, in which the fair value is determined by reference to the amount of royalty income the intangible would generate if it were licensed in an arm’s-length transaction. The essential assumptions in a valuation via an income approach are as follows:

The related dollar sales volume;

The percentage royalty on sales;

The adjustment for taxes;

The remaining useful economic life;

The percentage return on investment; and,

The tax amortization benefit.

During the fourth quarter of the fiscal year ended June 30, 2016, the fair value of the trademarks was determined to have inconsequential value based on the “relief from royalty” methodology. This assessment resulted in an impairment write-down during the fourth fiscal quarter of $432 thousand, which is included in “Impairment of intangible asset” in the Consolidated Statement of Operations for the fiscal year ended June 30, 2016.

At June 30, 2016, amortizable intangible asset balances were:

($ in thousands)	Cost			Accumulated Amortization				Net Book Value

Non-compete agreements		$	2		$	(1	)		$	1
Brand			95			(16	)		$	79
Developed Technology			639			(63	)		$	576
Customer Relationships			149			(7	)		$	142
		$	885		$	(87	)		$	798

There were no amortizable intangible assets at June 30, 2015.

Estimated annual amortization expense for amortizable intangible assets is as follows:

2017	$	175
2018		175
2019		159
2020		143
2021		79
Thereafter		67
	$	798

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.

LINE OF CREDIT (Q3)

9 Months Ended

12 Months Ended

Mar. 31, 2017

Jun. 30, 2016

Line Of Credit Facility [Abstract]

LINE OF CREDIT

5. LINE OF CREDIT

During the fiscal year ended June 30, 2016, the Company entered into a Loan and Security Agreement and other ancillary documents (as amended, the “Heritage Loan Documents”) with Heritage Bank of Commerce (“Heritage Bank”), providing for a secured asset-based revolving line of credit in an amount of up to $12.0 million (the “Heritage Line of Credit”) at an interest rate calculated based on the Federal Reserves’ Prime, which was 3.75% at March 31, 2017, plus 2.25%. The Heritage Line of Credit and the Company’s obligations under the Heritage Loan Documents are secured by substantially all of the Company’s assets, including its intellectual property.

During March 2017, the Company entered into the third amendment with Heritage Bank that extended the maturity date of the Heritage Line of Credit from March 29, 2017 to September 30, 2018. The Company paid a toal of $90 thousand in deferred financing costs.

At the time of maturity, all outstanding advances under the Heritage Line of Credit as well as any unpaid interest are due and payable. Prior to maturity of the Heritage Line of Credit, the Company may prepay amounts due under the Heritage Line of Credit without penalty, and subject to the terms of the Heritage Loan Documents, may re-borrow any such amounts.

The Heritage Loan Documents contain customary representations and warranties and affirmative and negative covenants applicable to the Company. The Heritage Loan Documents also require the Company to achieve a minimum Adjusted EBITDA, as defined in the Heritage Loan Documents, measured on a quarterly basis; that the number of the Company’s connections as of the end of each fiscal quarter shall not decrease below a specified number or by more than five percent as compared to the number of the Company’s connections as of the end of the immediately prior fiscal quarter; and that the Company shall maintain a minimum balance of unrestricted cash at Heritage Bank.

The balance due on the Heritage Line of Credit was $7.0 million at March 31, 2017 and $7.1 million at June 30, 2016. Included in the Heritage Line of Credit balance is $90 thousand of unamortized debt issuance costs, which is reflected in our net liability of $7.0 million for the quarter ending March 31, 2017. As of March 31, 2017, $5.0 million was available under our line of credit. Interest expense on the line of credit was approximately $100 thousand and $300 thousand for the three and nine months ended March 31, 2017, respectively.

9. LINE OF CREDIT

On January 15, 2016, the Company and Avidbank Corporate Finance, a division of Avidbank (“Avidbank”) entered into a Fifteenth Amendment (the “Amendment”) to the Loan and Security Agreement (as amended, the “Avidbank Loan Agreement”) previously entered into between them. The Avidbank Loan Agreement provided for a secured asset-based revolving line of credit facility (the “Avidbank Line of Credit”) of up to $7.0 million. The outstanding balance of the amounts advanced under the Avidbank Line of Credit bear interest at 2% above the prime rate as published in The Wall Street Journal or five percent (5%), whichever is higher. Avidbank also made a three-year term loan to the Company in the principal amount of $3.0 million (the “Term Loan”). The Term Loan was used by the Company to repay to Avidbank an advance that had been made to the Company under the Avidbank Line of Credit in December 2015, and which had been used by the Company to pay for the VendScreen business. The Term Loan provides that interest only is payable monthly during year one, interest and principal is payable monthly during years two and three, and all outstanding principal and accrued interest is due and payable on the third anniversary of the Term Loan. The Term Loan bears interest at an annual rate equal to 1.75% above the prime rate as published from time to time by The Wall Street Journal, or five percent (5%), whichever is higher. The Amendment increased the amount available under the Avidbank Line of Credit to $7.5 million less the amount then outstanding under the Term Loan.

On March 29, 2016, the Company entered into a Loan and Security Agreement and other ancillary documents (the “Heritage Loan Documents”) with Heritage Bank of Commerce (“Heritage Bank”), providing for a secured asset-based revolving line of credit in an amount of up to $12.0 million (the “Heritage Line of Credit”).

The Company utilized approximately $7.0 million under the Heritage Line of Credit to satisfy the existing Avidbank Line of Credit and related Term Loan, and approximately $80 thousand under the Heritage Line of Credit to pay closing fees, recorded as a debt discount, of Heritage Bank. The amount of advances remaining available to the Company under the Heritage Line of Credit as of June 30, 2016 was approximately $4.8 million.

The Heritage Loan Documents provide that the aggregate amount of advances under the Heritage Line of Credit shall not exceed the lesser of (i) $12.0 million, or (ii) eighty-five percent (85%) of license and transaction fee revenue (as is reflected as such in the Company’s consolidated statement of operations) for the preceding three (3) calendar months.

The outstanding daily balance of the amounts advanced under the Heritage Line of Credit will bear interest at 2.25% above the prime rate as published from time to time in The Wall Street Journal. At June 30, 2016, this prime rate was 3.50%. Interest is payable by the Company to Heritage Bank on a monthly basis.

The Heritage Line of Credit and the Company’s obligations under the Heritage Loan Documents are secured by substantially all of the Company’s assets, including its intellectual property.

The maturity date of the Heritage Line of Credit is March 29, 2017. At the time of maturity, all outstanding advances under the Heritage Line of Credit as well as any unpaid interest are due and payable. Prior to maturity of the Heritage Line of Credit, the Company may prepay amounts due under the Heritage Line of Credit without penalty, and subject to the terms of the Heritage Loan Documents, may re-borrow any such amounts.

The Heritage Loan Documents contain customary representations and warranties and affirmative and negative covenants applicable to the Company. The Heritage Loan Documents also require the Company to achieve a minimum Adjusted EBITDA, as defined in the Heritage Loan Documents, measured on a quarterly basis. The Heritage Loan Documents also require that the number of the Company’s connections as of the end of each fiscal quarter shall not decrease by more than five percent as compared to the number of the Company’s connections as of the end of the immediately prior fiscal quarter. As of June 30, 2016, the Company was not in compliance with the minimum Adjusted EBITDA provision of the debt covenant. The Company received a waiver from its bank for the covenant default.

The Heritage 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, Heritage Bank may declare all of the outstanding obligations of the Company under the Heritage Line of Credit and Heritage Loan Documents to be immediately due and payable, and exercise any other rights provided for under the Heritage Loan Documents, including foreclosing on the collateral securing the Heritage Loan Documents. In connection with the Heritage Loan Documents, the Company issued to Heritage Bank warrants to purchase up to 23,978 shares of common stock of the Company at an exercise price of $5.00 per share. The warrants are exercisable at any time through March 29, 2021 subject to earlier termination in the event of a business combination (as defined in the Heritage Loan Documents).

The fair value of the warrants of $52 thousand was charged against the current obligation under the line of credit and amortized as interest expense on a straight-line basis over 12 months. The Black-Sholes method was used to calculate fair value of the warrants.

The balance due on the Heritage line of credit was $7.2 million at June 30, 2016 and the balance due on the Avidbank line of credit was $4.0 million at June 30, 2015. As of June 30, 2016, $4.8 million was available under our line of credit.

($ in thousands)	For year ended June 30,
	2016			2015
Principal balance at period-end	$	7,217		$	4,000
Unamortized discount		(98	)		-
Line of credit, net	$	7,119		$	4,000
Maximum amount outstanding at any month end	$	7,217		$	5,000
Average balance outstanding during the period	$	4,959		$	4,100
Weighted-average interest rate:
As of the period-end		5.8	%		5.3	%
Paid during the period		5.5	%		5.3	%

Interest expense on the Line of Credit was approximately $260 thousand, $211 thousand and $221 thousand during each of the years ended June 30, 2016, 2015 and 2014 respectively.

LONG-TERM DEBT (Q3)

9 Months Ended

12 Months Ended

Mar. 31, 2017

Jun. 30, 2016

Debt Disclosure [Abstract]

LONG-TERM DEBT

6. LONG-TERM DEBT

The Company periodically enters into capital lease obligations to finance certain office, network equipment and related support for use in its daily operations. During the nine-month period ended March 31, 2017, the Company commenced capital lease obligations of $380 thousand. The obligations are due in two to five years in monthly or quarterly installments of $1 thousand to $21 thousand. The value of the acquired equipment is included in property and equipment and amortized accordingly.

10. LONG-TERM DEBT

ASSIGNMENT OF QUICKSTART LEASES

In February and May 2015, the Company assigned its interest in certain finance receivables (various 60 month QuickStart leases) to third-party finance companies in exchange for cash and the assumption of financing obligations in the aggregate of $1.8 million and $304 thousand, respectively. These assignment transactions contain recourse provisions for the Company which requires the proceeds from the assignment to be treated as long-term debt. The financing obligations range in rate from 9.4% to 9.5%.

CAPITAL LEASE OBLIGATIONS

The Company periodically enters into capital lease obligations to finance certain office and network equipment for use in its daily operations. During the year periods ended June 30, 2016, 2015 and 2014, the Company entered into capital lease obligations of $444 thousand, $108 thousand and $325 thousand, respectively. The interest rates on these obligations ranged from approximately 5.6% to 9.0%. The lease terms range from 2 to 5 years. The value of the acquired equipment is included in property and equipment and depreciated over the applicable estimated useful lives accordingly.

The balance of long-term debt as of June 30, 2016 and June 30, 2015 are shown in the table below.

($ in thousands)	June 30, 2016			June 30, 2015

Assignment of QuickStart Leases		$	1,600		$	1,994
Capital lease obligations			605			338
		$	2,205		$	2,332
Less current portion			629			478
		$	1,576		$	1,854

The maturities of long-term debt for each of the fiscal years following June 30, 2016 are as follows:

($ in thousands)

2017	$	629
2018		625
2019		588
2020		358
2021		5
	$	2,205

FAIR VALUE OF FINANCIAL INSTRUMENTS (Q3)

9 Months Ended

12 Months Ended

Mar. 31, 2017

Jun. 30, 2016

7. FAIR VALUE OF FINANCIAL INSTRUMENTS

As of June 30, 2016, the fair values of the Company’s Level 3 financial instrument totaled $3.7 million for 2.2 million warrants. The Level 3 financial instrument consist 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 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. During the nine months ended March 31, 2017 all of the aforementioned warrants were exercised and the then-fair value warrant liability was reclassified as Common Stock.

The following table summarizes the changes in the Company’s Level 3 financial instruments for the three and nine months ended March 31, 2017 and 2016.

	Three months ended March 31,						Nine months ended March 31,
($ in thousands)	2017		2016				2017				2016
Beginning balance	$	—		$	(1,865	)		$	(3,739	)		$	(978	)
Increase due to change in fair value of warrant liabilities		—			(4,805	)			(1,490	)			(5,692	)
Reclass of fair value of warranty liability to common stock upon exercise of warrants		—			706				5,229				706
Ending balance	$	—		$	(5,964	)		$	—			$	(5,964	)

There were no transfers of assets or liabilities between level 1, level 2, or level 3 during the three and nine months ended March 31, 2017 and March 31, 2016. As of March 31, 2017 and June 30, 2016, the Company held no Level 1 or Level 2 financial instruments.

11. 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, 2016 and 2015:

($ in thousands) June 30, 2016	Level 1		Level 2			Level 3			Total

Common stock warrant liability, 2.2 million warrants exercisable at $2.6058 from September 17, 2011 through September 17, 2016	$	-		$	-		$	3,739		$	3,739

June 30, 2015	Level 1		Level 2		Level 3		Total

Common stock warrant liability, 3.9 million warrants exercisable at $2.6058 from September 17, 2011 through September 17, 2016	$	-	$	-	$	978	$	978

As of June 30, 2016 and June 30, 2015, the Company held no Level 1 or Level 2 financial instruments.

As of June 30, 2016 and 2015 fair values of the Company’s Level 3 financial instrument totaled $3,739 million and $978 thousand for 2.2 million and 3.9 million warrants, 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 March 2011 to purchase 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 on the secondary market or in other private transactions. There were no transfer of assets or liabilities between level 1, level 2, or level 3 during the years ended June 30, 2016 and 2015.

($ in thousands)	For Year Ended June 30,
	2016				2015

Beginning balance		$	(978	)		$	(585	)
Increase due to change in fair value of warrant liabilities			(5,674	)			(393	)
Reduction due to warrant exercises			2,913				-
Ending balance		$	(3,739	)		$	(978	)

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.

INCOME TAXES (Q3)

9 Months Ended

12 Months Ended

Mar. 31, 2017

Jun. 30, 2016

Income Tax Disclosure [Abstract]

Commitments and Contingencies Disclosure [Abstract]

8. INCOME TAXES

For the three and nine months ended March 31, 2017, income tax expense of $209 thousand and $94 thousand, respectively, (substantially all deferred income taxes) were recorded. The expense are based upon income before income taxes using an estimated annual effective income tax rate of 31% for the fiscal year ending June 30, 2017. The provision for the nine months ended March 31, 2017 consists of a charge for the tax effect of the change in the fair value of warrant liabilities which was treated discretely offset by a tax benefit based upon income before benefit for income taxes using the estimated annual effective income tax rate of 23% for the fiscal year ending June 30, 2017. All of those warrants were exercised as of September 30, 2016.

For the three and nine months ended March 31, 2016, an income tax benefit/(provision) of $93 thousand and $(88) thousand respectively, (substantially all deferred income taxes) were recorded. The benefit (provision) consist of a charge for the tax effect of the change in the fair value of warrant liabilities which was treated discretely offset by a tax benefit based upon loss before benefit (provision) for income taxes using an estimated annual effective income tax rate of 33% for the fiscal year ended June 30, 2016.

13. 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 likely 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 had achieved along with the belief that such performance will continue into future years, the Company determined during the year ended June 30, 2014 that it was more likely than not that a substantial portion of its deferred tax assets would be realized with approximately $64 million of its operating loss carryforwards being utilized to offset corresponding future years’ taxable income resulting in a reduction in its valuation allowances recorded in prior years.

In addition to considering 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 number of connections added in a service year is a key metric which, in the Company’s recurring revenue service model, becomes an important ingredient in driving future growth and earnings. The Company has forecasted future results using estimates that management believes to be achievable. With respect to its forecasts, the Company also has taken 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.

If in future periods the Company demonstrates its ability to grow taxable income in excess of the forecasts it has used, it will re-evaluate the need to keep some, or all, of the remaining valuation allowances of approximately $23 million on its deferred tax assets.

The benefit (provision) for income taxes for the years ended June 30, 2016, 2015 and 2014 is comprised of the following:

($ in thousands)	2016			2015			2014
Current:
Federal	$	(7	)	$	(58	)	$	(21	)
State		(38	)		(6	)		-
		(45	)		(64	)		(21	)

Deferred:
Federal		407			365			20,970
State		253			(590	)		6,306
		660			(225	)		27,276

	$	615		$	(289	)	$	27,255

The provision for income taxes for the year ended June 30, 2015 includes $396 thousand for the state and federal income tax effects of a decrease in the applicable state tax rate used to tax effect deferred tax assets caused by a state income tax law change.

A reconciliation of the benefit (provision) for income taxes for the years ended June 30, 2016, 2015 and 2014 to the indicated benefit (provision) based on income (loss) before benefit (provision) for income taxes at the federal statutory rate of 34% is as follows:

($ in thousands)	2016			2015			2014

Indicated benefit (provision) at federal statutory rate of 34%	$	2,523		$	272		$	(94	)
Effects of permanent differences		(2,040	(A)		(215	)		(8	)
State income taxes, net of federal benefit		199			(410	)		(18	)
Income tax credits		70			40			-
Changes related to prior years		-			187			-
Changes in valuation allowances		(137			(163	)		27,375
	$	615		$	(289	)	$	27,255

(A)

Increase in the effects of permanent differences due to the tax effect of the change in fair value of warrant liabilities in 2016

At June 30, 2016 the Company had federal operating loss carryforwards of approximately $162 million to offset future taxable income expiring through approximately 2036. 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, 2016 available for use to offset future years’ taxable income to approximately $124 million. 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,
($ in thousands)	2016			2015
Deferred tax assets:
Net operating loss carryforwards	$	46,691		$	46,919
Asset reserves		1,713			792
Deferred research and development costs		1,356			1,009
Intangibles		539			606
Deferred gain on assets under sale-leaseback transaction		331			632
Stock-based compensation		377			224
Other		379			437
		51,386			50,619
Deferred tax liabilities:
Fixed assets		(528	)		(492	)
Intangibles and goodwill		-			(84	)
Deferred tax assets, net		50,858			50,043
Valuation allowance		(23,134	)		(22,997	)
Deferred tax assets (liabilties), net of allowance		27,724			27,046

Less current portion		2,271			1,258
Deferred tax assets (liabilties), non-current	$	25,453		$	25,788

EQUITY (Q3)

9 Months Ended

Mar. 31, 2017

Equity [Abstract]

EQUITY

9. EQUITY

WARRANTS

During the three months ended March 31, 2017 and 2016, there were 0 and 634,100 warrants exercised. During the nine months ended March 31, 2017, 2,376,675 warrants were exercised at $2.6058 per share yielding proceeds of $6.2 million, and 24,733 warrants were exercised at $2.10 per share in a cashless exercise. The following table summarizes warrant activity for the three and nine months ended March 31, 2017 and 2016:

	Three months ended March 31,					Nine months ended March 31,
	2017		2016			2017			2016
Beginning balance		23,978		4,298,000			2,445,653			4,309,000
Issued		—		23,978			—			23,978
Exercised		—		(634,100	)		(2,401,408	)		(645,100	)
Expired		—		—			—			—
Cancelled		—		—			(20,267	)		—
Ending balance		23,978		3,687,878			23,978			3,687,878

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.

In August 2016 stock options were awarded to purchase up to 20,080 shares of common stock at an exercise price of $4.98 per share. The options vest on August 31, 2017, and expire if not exercised prior to August 31, 2023. The options are intended to qualify as incentive stock options under Section 422 of the Internal Revenue Code of 1986, as amended. During the quarter ending March 31, 2017, three employees were issued the option to purchase 105,000 shares of common stock, of which 75,000 are classified as non-qualified stock options, exercisable at $4.00 per share, and the remaining 30,000 are intended to qualify as incentive stock options, exercisable at $4.05 per share. Of the 105,000 shares of common stock issued for the option to purchase, 95,000 shares expire on March 31, 2024 and 10,000 expire on February 6, 2024. The fair value of options granted during the nine months ended March 31, 2017 and 2016 was estimated using the following weighted average assumptions:

	Nine months ended March 31,
	2017			2016
Expected volatility		49 - 50	%		59 - 66	%
Expected life	3 - 4 years			4 - 4.5 years
Expected dividends		—	%		—	%
Risk-free interest rate		1.06 - 1.90	%		1.34 - 1.49	%
Number of options granted		125,080			194,586
Weighted average exercise price	$	4.17		$	3.21
Weighted average grant date fair value	$	1.68		$	1.64

Stock based compensation related to stock options for the three months ended March 31, 2017 and 2016 was $61 thousand and $67 thousand, respectively and $155 thousand and $274 thousand, respectively for the nine months ended March 31, 2017 and 2016.

COMMON STOCK

On July 1, 2016 $40 thousand of stock grants were awarded to each non-employee director based on the prior 30-day average closing price of the Company’s Common Stock, for a total of 56,784 shares. The shares vest as follows: 18,960 on July 1, 2017, 18,960 on July 1, 2018 and 18,954 on July 1, 2019. The total expense recognized for these grants during the three and nine months ended March 31, 2017 was $37 thousand and $110 thousand.

During the nine months ended March 31, 2017, the Company awarded an aggregate of 78,711 shares to its Chief Executive Officer and Chief Services Officer under its fiscal year 2016 long term stock incentive plan and an aggregate of 13,771 shares to three non-employee directors in satisfaction of board fees. During the nine-month period, the Chief Executive Officer cancelled 6,533 shares of Common Stock awarded to him under the 2016 fiscal year long term stock incentive plan in satisfaction of $31 thousand of related payroll obligations.

During the nine months ended March 31, 2017, the Company issued an aggregate of 2,401,408 shares upon the exercise of outstanding warrants.

LTI PLANS

The Board approved the Fiscal Year 2017 Long-Term Stock Incentive Plan (the “2017 LTI Stock Plan”) which provides that executive officers would be awarded shares of common stock of the Company in the event that certain metrics relating to the Company’s 2017 fiscal year would result in specified ranges of year-over-year percentage growth. The metrics are total number of connections as of June 30, 2017 as compared to total number of connections as of June 30, 2016 (50% weighting) and adjusted EBITDA earned during the 2017 fiscal year as compared to the adjusted EBITDA earned during the 2016 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: Chief Executive Officer (“CEO”) - $675,000 (150% of base salary), Chief Services Officer (“CSO”) - $250,000 (100% of base salary), and Chief Financial Officer (“CFO”) - $103,125 (75% of base salary less proration for the current fiscal year). 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 - $1,012,500 (225% of base salary), CSO - $375,000 (150% of base salary), and CFO - $154,688 (112.50% of base salary less prorated for the current fiscal year). 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 2017 LTI Stock Plan would vest as follows: one-third at the time of issuance; one-third on June 30, 2018; and one-third on June 30, 2019.

The Company had long-term stock incentive plans (“LTI”) in prior fiscal years for its then executive officers. Stock based compensation related to the LTI plans was as follows in the three and nine months ended March 31, 2017 and 2016:

	Three months ended March 31,				Nine months ended March 31,
($ in thousands, except per share data)	2017		2016		2017		2016
FY17 LTI Plan	$	81	$	—	$	236	$	—
FY16 LTI Plan		23		24		73		134
FY15 LTI Plan		3		8		6		48
FY14 LTI Plan		—		2		—		10
Total	$	107	$	34	$	315	$	192

COMMITMENTS AND CONTINGENCIES (Q3)

9 Months Ended

12 Months Ended

Mar. 31, 2017

Jun. 30, 2016

COMMITMENTS AND CONTINGENCIES

10. COMMITMENTS AND CONTINGENCIES

During the nine months ended March 31, 2017 the Company entered into a lease agreement for its operations in Portland, Oregon, which commenced October 1, 2016. The new location consists of 5,362 square feet and will expire in December 2019. The lease includes monthly rental payments of $11 thousand. The straight-line rent expense for this lease is $11 thousand per month.

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, results of operations or cash flows.

18. COMMITMENTS AND CONTINGENCIES

SALE AND LEASEBACK TRANSACTIONS

In June 2014, the Company and a third party finance company, entered into six Sale Leaseback Agreements (the “Sale Leaseback Agreements” or a “Sale Leaseback Agreement”) pursuant to which a third-party finance company purchased ePort equipment owned by the Company and used by the Company in its JumpStart Program. As of June 30, 2014, a third-party finance company completed the purchase from the Company, the ePort equipment under the first two of the Sale Leaseback Agreements.

In the quarter ended September 2014, a third-party finance company 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. The future lease payment obligations under these agreements are included in the table at the bottom of this note.

Upon the completion of the sales, the Company computed gains on the sale of its ePort equipment as follows:

($ in thousands)	Year ended June 30,
	2015
Rental equipment sold, cost	$	3,873
Rental equipment sold, accumulated depreciation upon sale		(331	)
Rental equipment sold, net book value		3,542
Proceeds from sale		4,994
Gain on sale of rental equipment	$	1,452

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 years ended June 30, 2016 and 2015 the Company recognized gains as follows:

($ in thousands)	Year ended June 30,
	2016			2015
Beginning balance	$	1,760		$	1,142
Gain on sale of rental equipment		-			1,452
Recognition of deferred gain		(860	)		(834	)
Ending balance		900			1,760
Less current portion		860			860
Non-current portion of deferred gain	$	40		$	900

OTHER LEASES

Other lease commitments include leases for its operations from various facilities. The Company leases space located in Malvern, Pennsylvania for its principal executive office and used for general administrative functions, sales activities, product development, and customer support. In April 2016, the Company entered into a Third Amendment to Office Space Lease (the “Third Amendment”) which amended certain terms of its existing lease (the “Lease”) for its Malvern, Pennsylvania executive offices consisting of approximately 17,249 square feet located on the first floor of the building (the “Current Premises”). The Third Amendment provides that the Company will relocate from the Current Premises to new offices located on the third floor of the building (the “New Offices”) consisting of approximately 17,689 square feet. Substantially all of the improvements to the New Offices will be constructed by the landlord at the landlord’s cost and expense. When the New Offices are substantially completed, the Company would relocate from the Current Premises to the New Premises (the “New Premises Commencement Date”). The Third Amendment provides that the term of the Lease is extended from the prior expiration date of April 30, 2016 until seven years following July 1, 2016 (the” New Premises Commencement Date”). The Company’s monthly base rent for the premises will increase from approximately $32 thousand to $36 thousand on the New Premises Commencement Date, and will increase each year thereafter up to a maximum monthly base rent of approximately $41 thousand. The Third Amendment also grants to the Company the option to extend the term of the Lease for an additional five year period with a minimum of one year advance notice prior to the expiration of the initial term, and provides certain rights of first offer on additional space located on the third floor of the building. The straight-line rent expense for this office is approximately $38 thousand per month for the duration of the lease.

The Company leases space in Malvern, Pennsylvania for its product warehousing and shipping support. In March 2016, the Company extended its lease from March 1, 2016 through February 29, 2019. The lease includes monthly rental payments of $5 thousand. Beginning in March 2016 the straight-line rent expense for this operations site is approximately $5 thousand per month for the duration of the lease period.

The Company leases space in Portland, Oregon related to its VendScreen acquisition. The current lease consists of approximately 9,319 square feet. The lease includes monthly rental payments of $20 thousand and will terminate on September 30, 2016. The Company is currently negotiating a new lease for space related to this facility.

Rent expense under operating leases was approximately $479 thousand, $354 thousand and $372 thousand during the years ended June 30, 2016, 2015, and 2014, respectively.

SUMMARY OF LEASE OBLIGATIONS

Future minimum lease payments for fiscal years subsequent to June 30, 2016 under non-cancellable operating leases and capital leases are as follows:

($ in thousands)	Operating Leases from Sale Leaseback		Other Operating Leases		Total Operating Leases		Capital Leases


2017	$	2,641	$	552	$	3,193	$	299
2018		138		503		641		236
2019		-		498		498		142
2020		-		459		459		-
2021		-		468		468		-
Thereafter		-		963		963		-
Total minimum lease payments	$	2,779	$	3,443	$	6,222	$	677
Less Amount Representing interest								72
Present Value of net minimum lease payments								605
Less Current obligations under capital leases								255
Obligations under capital leases, less current portion							$	350

LITIGATION

As previously reported, on October 1, 2015, a purported class action was filed in the United States District Court for the Eastern District of Pennsylvania against the Company and its executive officers alleging violations under the Securities Exchange Act of 1934. On December 15, 2015, the court appointed a lead plaintiff, and on January 18, 2016, the plaintiff filed an amended complaint that set forth the same causes of action and requested substantially the same relief as the original complaint. On February 1, 2016, the Company filed a motion to dismiss the amended complaint. On April 11, 2016, the Court held oral argument on the Company’s motion, and on April 14, 2016, the Court issued an order granting the Company’s motion to dismiss the amended complaint without leave to amend. On May 13, 2016, the plaintiff appealed the Court’s order to the United States Court of Appeals for the Third Circuit.

On August 16, 2016, the plaintiff filed a Motion For Relief From Final Judgment with the District Court seeking an order modifying the District Court’s April 14, 2016 order dismissing the complaint, and permitting the plaintiff to now file an amended complaint due to alleged newly discovered evidence. By Order dated September 6, 2016, the District Court found that the Motion raised a substantial issue, and directed the plaintiff to notify the Court of Appeals thereof. On September 7, 2016, the plaintiff so notified the Court of Appeals. It is anticipated that the Court of Appeals will remand the case to the District Court pending the District Court’s ruling on the Motion. The Company’s response to the Motion is due by no later than September 15, 2016. The Company believes that the Motion has no merit and intends to vigorously oppose the Motion.

By letter dated December 7, 2015, a purported shareholder of the Company demanded that the Board of Directors investigate, remedy and commence proceedings against certain of the Company’s current and former officers and directors for breach of fiduciary duties in connection with the material weakness in its internal controls over financial reporting which were more fully described in the Company’s Form 10-K for the fiscal year ended June 30, 2015 (the “2015 Form 10-K”). In response to the demand letter, the Board of Directors formed a special litigation committee (the “SLC”) consisting of Joel Brooks and William Reilly, Jr., in order to investigate and evaluate the demand letter. On June 1, 2016, and before the SLC had concluded its investigation, the purported shareholder filed a purported derivative action on behalf of the Company in the Chester County, Pennsylvania, Court of Common Pleas, against certain current and former officers and directors. The complaint alleges that the defendants breached their fiduciary duties relating to the material weakness in internal controls reported in the 2015 Form 10-K. The complaint seeks unspecified damages against the defendants and certain equitable relief. On July 15, 2016 the SLC issued its report (the “SLC Report”) which, among other things, concluded that the none of the current or former officers or Directors had breached their fiduciary duties, that it was not in the best interests of the Company to pursue the pending shareholder derivative action, and that the Company request the Court to dismiss the action in its entirety. On August 1, 2016, the Board of Directors of the Company adopted all of the conclusions and recommendations set forth in the SLC Report. On August 16, 2016, the Company filed with the Court a Motion to Dismiss the shareholder derivative complaint. As of the date hereof, the court has not ruled on the Motion to Dismiss.

The ultimate outcome of these matters cannot be determined at this time. The Company believes that it has meritorious defenses to such claims and is defending them vigorously, and has not recorded a provision for the ultimate outcome of these matters in its financial statements.

BUSINESS (10K)	12 Months Ended
BUSINESS (10K)	Jun. 30, 2016
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 and others. Since our founding, we have designed and marketed systems and solutions that facilitate electronic payment options, as well as telemetry Internet of Things (“IoT”) 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. All of our customers are located in North America.

ACCOUNTING POLICIES (10K)

12 Months Ended

Jun. 30, 2016

ACCOUNTING POLICIES

2. ACCOUNTING POLICIES

CONSOLIDATION

USE OF ESTIMATES

CASH

The Company maintains its cash in bank deposit accounts, which may exceed federally insured limits at times.

ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS

FINANCE RECEIVABLES

INVENTORY, Net

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, Net

GOODWILL AND INTANGIBLE ASSETS

The Company’s intangible assets include goodwill, trademarks, non-compete agreements, brand, developed technology and customer relationships.

The Company’s trademarks with an indefinite economic life are not being amortized. The trademarks, not subject to amortization, are related to the EnergyMiser asset group and consist of four trademarks. The Company tests indefinite-life 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 concluded there was no impairment of trademarks during the fiscal years ended June 30, 2015 and 2014, respectively. During the fourth quarter of the fiscal year ended June 30, 2016, the fair value of the trademarks were determined to have inconsequential value based on the “relief from royalty” methodology. This assessment resulted in an impairment write-down during the fourth fiscal quarter of $432 thousand, which is included in “Impairment of intangible asset” in the Consolidated Statement of Operations for the fiscal year ended June 30, 2016. (See Note 7 Goodwill and Intangible Assets for details.)

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, 2016 and 2015.

FAIR VALUE OF FINANCIAL INSTRUMENTS

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.

CONCENTRATION OF RISKS

Financial instruments that subject the Company to a concentration of credit risk consist principally of cash and accounts and finance receivables. The Company maintains cash with various financial institutions where accounts may exceed federally insured limits at times. Approximately 18%, 35% and 22% of the Company’s trade accounts and finance receivables at June 30, 2016, 2015 and 2014, respectively, were concentrated with one customer.

Concentration of revenues with customers subject the Company to operating risks. Approximately 16%, 21% and 26% of the Company’s license and transaction processing revenues for the years ended June 30, 2016, 2015 and 2014, respectively, were concentrated with one customer. Approximately 28% and 17% of the Company’s equipment sales revenue were concentrated with one customer for the years ended June 30, 2016 and 2015, respectively, with no concentrations for the year ended June 30, 2014. The Company’s customers are principally located in the United States.

REVENUE RECOGNITION

Revenue from the sale or QuickStart lease of equipment is recognized on the terms of free-on-board shipping point. Activation fee revenue, if applicable, 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 and license and transaction fee refunds on a monthly basis.

ePort hardware is available to customers under the QuickStart program pursuant to which the customer would enter into a five-year non-cancelable lease with either the Company or a third-party leasing company for the devices. The Company qualifies for sales type lease accounting. Accordingly, the company recognizes a portion of lease payments as interest income. At the end of the lease period, the customer would have the option to purchase the device at its residual value.

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.

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 equipment.

ADVERTISING

Advertising costs are expensed as incurred. Advertising expense was $0.3 million, $0.2 million, and $0.2 million in the fiscal years ended June 30, 2016, 2015, and 2014, respectively.

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 $1.4 million, $1.5 million and $1.0 million, for the years ended June 30, 2016, 2015, and 2014, 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 requisite service period of the award.

Litigation Costs

From time to time, we are involved in litigation, claims, contingencies and other legal matters. We record a charge equal to at least the minimum estimated liability for a loss contingency when both of the following conditions are met: (i) information available prior to issuance of the financial statements indicates that it is probable that an asset had been impaired or a liability had been incurred at the date of the financial statement and (ii) the range of the loss can be reasonably estimated. We expense legal costs, including those legal costs expected to be incurred in connection with a loss contingency, as incurred.

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, 2016, 2015, and 2014.

The Company files income tax returns in the United States federal jurisdiction and various state jurisdictions. The tax years ended June 30, 2013 through June 30, 2016 remain open to examination by taxing jurisdictions to which the Company is subject. As of June 30, 2016, 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 net income (loss) applicable to common shares by the weighted average common shares outstanding for the period. Diluted earnings (loss) per share are calculated by dividing net income (loss) applicable to common shares by the weighted average common shares outstanding for the period plus the dilutive effects of common stock equivalents unless the effects of such common stock equivalents are anti-dilutive. For the years ended June 30, 2016, 2015 and 2014 no effect for common stock equivalents was considered in the calculation of diluted earnings (loss) per share because their effect was anti-dilutive.

The consolidated financial statements included in this Form 10-K reflect additional shares of common stock and preferred stock that had been issued and outstanding in prior periods but were not reflected as such in previous consolidated financial statements as explained in Note 19. The basic and diluted weighted average number of common shares outstanding for the years ended June 30, 2015 and 2014 have been adjusted to reflect the additional number of shares pertaining to each of those years. The foregoing adjustments in basic and diluted weighted common shares outstanding did not affect the previously reported net loss per common share-basic or diluted for the year ended June 30, 2015. The previously reported net income per common share-basic and diluted for the year ended June 30, 2014 was decreased from $.78 to $.77 as a result of the foregoing adjustments.

SOFTWARE DEVELOPMENT COSTS

Costs incurred during the preliminary project along with post-implementation stages of internal use computer software development and costs incurred to maintain existing product offerings are expensed as incurred. The capitalization and ongoing assessment of recoverability of development costs require considerable judgment by management with respect to certain external factors, including, but not limited to, technological and economic feasibility and estimated economic life. At June 30, 2016, the Company had $137 thousand in capitalized software development which is being amortized over a period of three years.

OTHER COMPREHENSIVE INCOME

ASC 220, “Comprehensive Income”, prescribes the reporting required for comprehensive income and items of other comprehensive income. Entities having no items of other comprehensive income are not required to report on comprehensive income. The Company has no items of other comprehensive income for its years ended June 30, 2016, 2015 or 2014.

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 May 2014, the Financial Accounting Standards Board issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU was amended by ASU No. 2015-14, issued in August 2015, which deferred the original effective date by one year. The new guidance provides a single model for entities to use in accounting for revenue arising from contracts with customers and will supersede most current revenue recognition guidance. The new standard also requires expanded qualitative and quantitative disclosures about the nature, timing and uncertainty of revenue and cash flows rising from contracts with customers. The ASU is now effective for fiscal years, and interim reporting periods within those years, beginning with the year ending June 30, 2019.

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. Under the new guidance an entity will not record compensation expense related to an award until it becomes probable that the performance target will be met. This pronouncement will be effective for the Company beginning with the year ending June 30, 2017.

In April 2015, the Financial Accounting Standards Board issued ASU 2015-03 Interest - Imputation of Interest (Subtopic 835-30): Simplifying the presentation of debt issuance costs. This standard is part of FASB’s simplification initiative which has as its objective to identify, evaluate, and improve areas where cost and complexity can be reduced while maintaining or improving the usefulness of the information for users. The Company adopted this pronouncement for the year ended June 30, 2016.

In July 2015, the Financial Accounting Standards Board issued ASU 2015-11 Inventory (Topic 330): Simplifying the measurement of inventory. This standard is part of FASB’s simplification initiative which has as its objective to identify, evaluate, and improve areas where cost and complexity can be reduced while maintaining or improving the usefulness of the information for users. This pronouncement will be effective for the Company beginning with the year ending June 30, 2018.

In September 2015, the Financial Accounting Standards Board issued ASU 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments". ASU 2015-16 eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. ASU 2015-16 will be effective for the Company beginning with the quarter ending September 30, 2016. Since this standard is prospective, the impact of ASU 2015-16 on the Company's financial condition, results of operations and cash flows will depend upon the nature of any measurement period adjustments identified in future periods.

In November 2015, the Financial Accounting Standards Board issued ASU 2015-17, "Balance Sheet Classification of Deferred Taxes" ("ASU 2015-17"), which will require entities to present all deferred tax liabilities and assets as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. The standard will be effective for the Company beginning with the quarter ending September 30, 2017. Early application is permitted. The standard can be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented.

In February 2016, the Financial Accounting Standards Board issued ASU 2016-02 “Leases” (Topic 842). Under the new guidance, those leases classified as operating leases under previous GAAP, will be recognized on our consolidated balance sheet as liabilities with corresponding right-of-use assets. This pronouncement will be effective for the Company beginning with the year ending June 30, 2018.

In March 2016, the Financial Accounting Standards Board issued ASU 2016-09 Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The new guidance simplifies several aspects of accounting and presentation for share-bases compensation. This pronouncement will be effective for the Company beginning with the year ending June 30, 2018.

In August 2016, the Financial Accounting Standards Board issued ASU 2016-15 Statement of Cash Flows Classification of Certain Cash Receipts and Cash Payments (Topic 230). This update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. This pronouncement will be effective for the Company beginning with the year ending June 30, 2018.

There are three amendments to ASU 2014-09 issued in 2016. They are ASU 2016-08, issued in March 2016 Revenue from Contracts with Customers (Topic 606) Principal versus Agent Considerations which clarifies those relationships with the customer, ASU 2016-10, issued in April 2016 Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing, what is the entity’s obligations to its customer and what is the customer’s entitlement in the license agreements and ASU 2016-12, issued in April 2016 Revenue from Contracts with Customers (Topic 606), Narrow Scope Improvements and Practical Expedients, guidance on assessing collectability, presentation of sales taxes, noncash consideration, and completed contract modifications at transition. These amendments to ASU 2014-09 are now effective for fiscal years, and interim reporting periods within those years, beginning with the year ending June 30, 2019.

RECLASSIFICATION

As reported in the Company’s Form 10-Q for the quarter ended September 30, 2015, commencing with the September 30, 2015 financial statements, the Company changed the manner in which it presents certain uncollected customer accounts receivable and the related allowance in its consolidated balance sheets and the related statements of cash flows. These accounts receivable represent a large number of small balance amounts due from customers for processing and service fees which had not been billed to customers, and as to which, there had been no customer transaction proceeds from which the Company could collect the amounts due in accordance with its normal procedures. The previous accounting classification recorded these amounts as a reduction of its accounts payable in the consolidated balance sheets and the related statements of cash flows. The new accounting classification moves these amounts to accounts receivable and allowance for bad debt.

($ in thousands)	June 30, 2015 Balances
Consolidated Balance Sheet Line Items	As previously reported			Reclassification			As reclassified

Accounts Receivable, net of allowance for doubtful accounts:
Reclassification of balances included in accounts payable to accounts receivable				$	2,114
Reclassification of the allowance for doubtful accounts in accounts payable					(815	)
	$	4,672		$	1,299		$	5,971

Allowance for Doubtful Accounts:
Reclassification of the allowance for doubtful accounts in accounts payable	$	(494	)	$	(815	)	$	(1,309	)

Accounts Payable:
Reclassification of balances included in accounts payable to accounts receivable				$	2,114
Reclassification of the allowance for doubtful accounts in accounts payable					(815	)
	$	9,243		$	1,299		$	10,542

Accordingly, the respective balances for all prior periods presented in these financial statements were reclassified in order to be consistent with and comparable to the accounting classification of these items in our June 30, 2015 financial statements. The new accounting classification as well as the reclassification for prior periods had no effect on the consolidated statements of operations or the consolidated statements of shareholders’ equity. The details of the reclassification of the consolidated balance sheets were disclosed in the Company’s Form 10-Q for the quarter ended September 30, 2015. The consolidated statements of cash flows amounts are presented in the table below:

($ in thousands)	For the fiscal year ended June 30, 2015
Consolidated Statement of Cash Flow Line Items	As previously reported			Reclassification			As reclassified

Accounts Receivable
Reclassification of cash provided by and included in accounts payable to accounts receivable	$	(2,517	)	$	(22	)	$	(2,539	)

Accounts Payable:
Reclassification of cash used in and included in accounts payable to accounts receivable	$	919		$	22		$	941

($ in thousands)	For the fiscal year ended June 30, 2014
Consolidated Statement of Cash Flow Line Items	As previously reported			Reclassification			As reclassified

Accounts Receivable
Reclassification of cash provided by and included in accounts payable to accounts receivable	$	(157	)	$	(47	)	$	(204	)

Accounts Payable:
Reclassification of cash used in and included in accounts payable to accounts receivable	$	413		$	47		$	460

ACQUISITION (10K)

12 Months Ended

Jun. 30, 2016

Business Combinations [Abstract]

ACQUISITION

3. ACQUISITION

VENDSCREEN, INC.

On January 15, 2016, the Company executed an Asset Purchase Agreement with VendScreen, Inc. (“VendScreen”), a Portland, Oregon based developer of vending industry cashless payment technology, by which it acquired substantially all of VendScreen’s assets and assumed specified liabilities, for a cash payment of $5.625 million. The purchase price was funded using $2.625 million in cash, and the balance of $3.0 million from a term loan which was converted from a line of credit.

This acquisition expands the Company’s capability with interactive media (touchscreen) and content delivery through VendScreen’s cloud-based content delivery platform, device platform and products, customer base, vendor management system (VMS) integration, and consumer product information including nutritional data. In addition to new technology and services, the acquisition adds a West Coast operational footprint, with former VendScreen employees able to offer expanded customer services, sales and technical support. On the date of the acquisition, VendScreen had approximately 150 customers with approximately 6,000 connections. Of those 150 customers approximately 50% are new customers of USAT.

The following table summarizes the preliminary purchase price allocation to reflect the fair values of the assets acquired and liabilities assumed at the date of acquisition.

($ in thousands)

Consideration:Fair value of total consideration paid in cash	$	5,625

Acquisition / non-recurring acquisition expenses:	$	842

Recognized amounts of identifiable assets acquired and liabilities assumed:

Financial Assets:
Accounts receivable	$	3
Finance receivables		628
Other current assets		20
Deferred income taxes		18
		669

Property, plant & equipment		81

Identifiable intangible assets:
Developed technology		639
Customer relationships		149
Brand		95
Noncompete agreements		2
Fair value of intangible assets		885

Financial liabilities
Accrued liabilities		(50	)

Total identifiable net assets		1,585

Goodwill		4,040

Total Fair Value	$	5,625

Of the $885 thousand of acquired intangible assets, $639 thousand was assigned to Developed Technology that is subject to amortization over 5 years, $149 thousand was assigned to Customer Relationships which are subject to amortization over 10 years; $2 thousand was assigned to a non-compete agreement that is subject to amortization over 2 years, and $95 thousand was assigned to the Brand that is subject to amortization over 3 years. All of the intangible assets are amortizable for income tax purposes.

VendScreen has been included in the accompanying consolidated financial statements of the Company since the date of acquisition. The $842 thousand of acquisition / non-recurring expenses consists of non-recurring expenses incurred in connection with the acquisition and integration of the VendScreen business and were included in SG&A expenses during the 1 year ended June 30, 2016.

The acquired business contributed net revenues of $1.2 million during the fiscal year ended June 30, 2016. ASC No. 2010-29 requires the disclosure of additional information including the amounts of earnings of the acquiree since the acquisition date included in the consolidated income statement, and the revenue and earnings of the combined entity as though the business combination that occurred during the current year had occurred at the beginning of the prior annual reporting period (supplemental pro forma information). The disclosure of such information was impractical and is not provided as (1) the acquiree had been integrated into the Company’s operation such that discreet financial information of the acquiree could not be determined, and (2) the financial records of the acquiree were not adequate to allow the preparation of supplemental pro forma information.

EARNINGS PER SHARE CALCULATION

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

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+ Details

EARNINGS PER SHARE CALCULATION (10K)

12 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

4. EARNINGS PER SHARE CALCULATION

The calculation of basic earnings per share (“eps”) and diluted earnings per share is presented below:

	Year Ended June 30
($ in thousands, except per share data)	2016			2015			2014

Numerator for basic and diluted earnings per share
Net income (loss)	$	(6,806	)	$	(1,089	)	$	27,531
Preferred dividends		(668	)		(668	)		(668	)
Net income (loss) available to common shareholders	$	(7,474	)	$	(1,757	)	$	26,863

Denominator for basic earnings per share - Weighted average shares outstanding		36,309,047			35,719,211			34,667,769
Effect of dilutive potential common shares		-			-			341,790
Denominator for diluted earnings per share - Adjusted weighted average shares outstanding		36,309,047			35,719,211	#		35,009,559

Basic earnings (loss) per share	$	(0.21	)	$	(0.05	)	$	0.77

Diluted earnings (loss) per share	$	(0.21	)	$	(0.05	)	$	0.77

Antidilutive shares excluded from the calculation of diluted earnings per share were 1,168,689, 252,827 and 98,497 for the years ended June 30, 2016, 2015 and 2014, respectively.

FINANCE RECEIVABLES (10K)

9 Months Ended

12 Months Ended

Mar. 31, 2017

Jun. 30, 2016

Property, Plant and Equipment [Abstract]

3. FINANCE RECEIVABLES

Finance receivables consist of the following:

($ in thousands)	March 31, 2017		June 30, 2016
		(unaudited)
Total finance receivables	$	9,605		$	7,306
Less current portion		2,057			3,588
Non-current portion of finance receivables	$	7,548		$	3,718

Credit Quality Indicators

Credit risk profile based on payment activity: ($ in thousands)	March 31, 2017		June 30, 2016
		(unaudited)
Performing	$	9,527		$	7,174
Nonperforming		78			132
Total	$	9,605		$	7,306

Age Analysis of Past Due Finance Receivables

As of March 31, 2017

($ in thousands)		31 – 60 Days Past Due				61 – 90 DaysPast Due				Greater than 90 Days Past Due				Total Past Due				Current				Total Finance Receivables
QuickStart Leases		$	31			$	1			$	21			$	53			$	9,552			$	9,605

Age Analysis of Past Due Finance Receivables

As of June 30, 2016

($ in thousands)		31 – 60 Days Past Due				61 – 90 Days Past Due				Greater than 90 Days Past Due				Total Past Due				Current				Total Finance Receivables
QuickStart Leases		$	98			$	31			$	3			$	132			$	7,174			$	7,306

5. FINANCE RECEIVABLES

Finance receivables consist of the following:

($ in thousands)	June 30, 2016			June 30, 2015

Total finance receivables		$	7,306		$	4,639
Less current portion			3,588			941
Non-current portion of finance receivables		$	3,718		$	3,698

Credit quality indicators consist of the following:

Credit Quality Indicators

	June 30, 2016		June 30, 2015
($ in thousands)
Performing	$	7,174	$	4,619
Nonperforming		132		20
Total	$	7,306	$	4,639

Age Analysis of Past Due Finance Receivables

As of June 30, 2016

($ in thousands)	31 – 60 Days Past Due		61 – 90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Total Finance Receivables

QuickStart Leases	$	98	$	31	$	3	$	132	$	7,174	$	7,306

Age Analysis of Past Due Finance Receivables

As of June 30, 2015

($ in thousands)	Days Past 31 – 60 Due		61 – 90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Total Finance Receivables

QuickStart Leases	$	-	$	16	$	5	$	21	$	4,618	$	4,639

Finance receivables due for each of the fiscal years following June 30, 2016 are as follows:

($ in thousands)

2017	$	3,588
2018		1,246
2019		1,246
2020		944
2021 and beyond		282
	$	7,306

PROPERTY AND EQUIPMENT, net (10K)

12 Months Ended

Jun. 30, 2016

PROPERTY AND EQUIPMENT, net

6. PROPERTY AND EQUIPMENT, net

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

	Useful	June 30, 2016
($ in thousands)	Lives	Cost		Accumulated Depreciation			Net
Computer equipment and software	3-7 years	$	5,506	$	(4,374	)	$	1,132
Property and equipment used for rental program	5 years		26,648		(18,246	)		8,402
Furniture and equipment	3-7 years		874		(654	)		220
Leasehold improvements	Lesser of life or lease term		575		(564	)		11
		$	33,603	$	(23,838	)	$	9,765

	Useful	June 30, 2015
($ in thousands)	Lives	Cost		Accumulated Depreciation			Net
Computer equipment and purchased software	3-7 years	$	4,670	$	(4,017	)	$	653
Property and equipment used for rental program	5 years		26,469		(14,476	)		11,993
Furniture and equipment	3-7 years		723		(572	)		151
Leasehold improvements	Lesser of life or lease term		575		(503	)		72
		$	32,437	$	(19,568	)	$	12,869

Assets under capital leases totaled approximately $2.6 million and $2.1 million as of June 30, 2016 and 2015, respectively. Capital lease amortization of approximately $271 thousand, $349 thousand and $305 thousand, is included in depreciation expense for the years ended June 30, 2016, 2015, and 2014, respectively.

GOODWILL AND INTANGIBLE ASSETS (10K)

9 Months Ended

12 Months Ended

Mar. 31, 2017

Jun. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

4. GOODWILL AND INTANGIBLES

The following table summarizes the final purchase price allocation to reflect the fair values of the assets acquired and liabilities assumed at the date of acquisition.

Consideration:
Fair value of total consideration paid in cash	$	5,625

Acquisition related costs:	$	842

Recognized amounts of identifiable assets acquired and liabilities assumed:

Financial Assets:
Accounts Receivable		3
Finance Receivables		839
Other Current Assets		20
Deferred Income Taxes		18
		880

Property, Plant & Equipment		81

Identifiable Intangible Assets:
Developed Technology		639
Customer Relationships		149
Brand		95
Noncompete Agreement		2
Fair Value of Intangible Assets		885

Financial Liabilities
Accrued Liabilities	$	(50	)

Total identifiable net assets	$	1,796

Goodwill	$	3,829

Total Fair Value	$	5,625

($ in thousands)	Balance June 30, 2016		Additions/ Adjustments			Amortization			Balance March 31, 2017		Amortization Period
Intangible Assets:
Non-compete agreements	$	1	$	—		$	(1	)	$	—	2 years
Brand		79		—			(24	)		55	3 years
Developed technology		576		—			(96	)		480	5 years
Customer relationships		142		—			(11	)		131	10 years
Total Intangible Assets	$	798	$	—		$	(132	)	$	666

Goodwill	$	11,703	$	(211	)	$	—		$	11,492	Indefinite

7. GOODWILL AND INTANGIBLE ASSETS

	Beginning		Year ended June 30, 2016						Ending
($ in thousands)	Balance		Additions/						Balance		Amortization
	July 1, 2015		Adjustments			Amortization			June 30, 2016		Period
Intangible Assets:
Trademarks - Indefinite	$	432	$	(432	)(1)	$	-		$	-	Indefinite
Non-compete agreements		-		2			(1	)		1	2 years
Brand		-		95			(16	)		79	3 years
Developed technology		-		639			(63	)		576	5 years
Customer relationships		-		149			(7	)		142	10 years
Total Intangible Assets	$	432	$	453		$	(87	)	$	798

Goodwill		7,663		4,040			-			11,703	Indefinite

Total Intangible Assets & Goodwill	$	8,095	$	4,493		$	(87	)	$	12,501

	Beginning		Year ended June 30, 2015				Ending
($ in thousands)	Balance		Additions/				Balance		Amortization
	July 1, 2014		Adjustments		Amortization		June 30, 2015		Period
Intangible assets:
Trademarks - Indefinite	$	432		-		-	$	432	Indefinite
Total Intangible Assets	$	432	$	-	$	-	$	432

Goodwill		7,663		-		-		7,663	Indefinite

Total	$	8,095	$	-	$	-	$	8,095

(1)

The related dollar sales volume;

The percentage royalty on sales;

The adjustment for taxes;

The remaining useful economic life;

The percentage return on investment; and,

The tax amortization benefit.

At June 30, 2016, amortizable intangible asset balances were:

($ in thousands)	Cost			Accumulated Amortization				Net Book Value

Non-compete agreements		$	2		$	(1	)		$	1
Brand			95			(16	)		$	79
Developed Technology			639			(63	)		$	576
Customer Relationships			149			(7	)		$	142
		$	885		$	(87	)		$	798

There were no amortizable intangible assets at June 30, 2015.

Estimated annual amortization expense for amortizable intangible assets is as follows:

2017	$	175
2018		175
2019		159
2020		143
2021		79
Thereafter		67
	$	798

ACCRUED EXPENSES (10K)

12 Months Ended

Jun. 30, 2016

Accrued Liabilities [Abstract]

ACCRUED EXPENSES

8. ACCRUED EXPENSES

Accrued expenses consist of the following:

($ in thousands)	June 30, 2016			June 30, 2015

Accrued compensation and related sales commissions	$	1,268		$	673
Accrued professional fees		809			301
Accrued taxes and filing fees		795			505
Advanced customer billings		236			390
Accrued rent		2			75
Accrued other		363			213
		3,473			2,157
Less current portion		(3,458	)		(2,108	)
	$	15		$	49

LINE OF CREDIT (10K)

9 Months Ended

12 Months Ended

Mar. 31, 2017

Jun. 30, 2016

Line Of Credit Facility [Abstract]

LINE OF CREDIT

5. LINE OF CREDIT

9. LINE OF CREDIT

The Heritage Line of Credit and the Company’s obligations under the Heritage Loan Documents are secured by substantially all of the Company’s assets, including its intellectual property.

The Heritage Loan Documents contain customary representations and warranties and affirmative and negative covenants applicable to the Company. The Heritage Loan Documents also require the Company to achieve a minimum Adjusted EBITDA, as defined in the Heritage Loan Documents, measured on a quarterly basis. The Heritage Loan Documents also require that the number of the Company’s connections as of the end of each fiscal quarter shall not decrease by more than five percent as compared to the number of the Company’s connections as of the end of the immediately prior fiscal quarter. As of June 30, 2016, the Company was not in compliance with the minimum Adjusted EBITDA provision of the debt covenant. The Company received a waiver from its bank for the covenant default.

($ in thousands)	For year ended June 30,
	2016			2015
Principal balance at period-end	$	7,217		$	4,000
Unamortized discount		(98	)		-
Line of credit, net	$	7,119		$	4,000
Maximum amount outstanding at any month end	$	7,217		$	5,000
Average balance outstanding during the period	$	4,959		$	4,100
Weighted-average interest rate:
As of the period-end		5.8	%		5.3	%
Paid during the period		5.5	%		5.3	%

Interest expense on the Line of Credit was approximately $260 thousand, $211 thousand and $221 thousand during each of the years ended June 30, 2016, 2015 and 2014 respectively.

LONG-TERM DEBT (10K)

9 Months Ended

12 Months Ended

Mar. 31, 2017

Jun. 30, 2016

Debt Disclosure [Abstract]

LONG-TERM DEBT

6. LONG-TERM DEBT

10. LONG-TERM DEBT

ASSIGNMENT OF QUICKSTART LEASES

CAPITAL LEASE OBLIGATIONS

The balance of long-term debt as of June 30, 2016 and June 30, 2015 are shown in the table below.

($ in thousands)	June 30, 2016			June 30, 2015

Assignment of QuickStart Leases		$	1,600		$	1,994
Capital lease obligations			605			338
		$	2,205		$	2,332
Less current portion			629			478
		$	1,576		$	1,854

The maturities of long-term debt for each of the fiscal years following June 30, 2016 are as follows:

($ in thousands)

2017	$	629
2018		625
2019		588
2020		358
2021		5
	$	2,205

FAIR VALUE OF FINANCIAL INSTRUMENTS (10K)

9 Months Ended

12 Months Ended

Mar. 31, 2017

Jun. 30, 2016

7. FAIR VALUE OF FINANCIAL INSTRUMENTS

The following table summarizes the changes in the Company’s Level 3 financial instruments for the three and nine months ended March 31, 2017 and 2016.

	Three months ended March 31,						Nine months ended March 31,
($ in thousands)	2017		2016				2017				2016
Beginning balance	$	—		$	(1,865	)		$	(3,739	)		$	(978	)
Increase due to change in fair value of warrant liabilities		—			(4,805	)			(1,490	)			(5,692	)
Reclass of fair value of warranty liability to common stock upon exercise of warrants		—			706				5,229				706
Ending balance	$	—		$	(5,964	)		$	—			$	(5,964	)

11. FAIR VALUE OF FINANCIAL INSTRUMENTS

($ in thousands) June 30, 2016	Level 1		Level 2			Level 3			Total

Common stock warrant liability, 2.2 million warrants exercisable at $2.6058 from September 17, 2011 through September 17, 2016	$	-		$	-		$	3,739		$	3,739

June 30, 2015	Level 1		Level 2		Level 3		Total

Common stock warrant liability, 3.9 million warrants exercisable at $2.6058 from September 17, 2011 through September 17, 2016	$	-	$	-	$	978	$	978

As of June 30, 2016 and June 30, 2015, the Company held no Level 1 or Level 2 financial instruments.

($ in thousands)	For Year Ended June 30,
	2016				2015

Beginning balance		$	(978	)		$	(585	)
Increase due to change in fair value of warrant liabilities			(5,674	)			(393	)
Reduction due to warrant exercises			2,913				-
Ending balance		$	(3,739	)		$	(978	)

WARRANTS (10K)

12 Months Ended

Jun. 30, 2016

Warrants [Abstract]

WARRANTS

12. WARRANTS

All warrants outstanding as of June 30, 2016 were exercisable. The following table shows exercise prices and expiration dates for warrants outstanding as of June 30, 2016:

Warrants Outstanding		Exercise Price Per Share		Expiration Date
	2,376,675	$	2.61	September 18, 2016
	45,000	$	2.10	December 31, 2017
	23,978	$	5.00	March 29, 2021
	2,445,653

Warrant activity for the years ended June 30, 2016, 2015, and 2014 was as follows:

	Warrants
Outstanding at June 30, 2013		7,361,708
Issued		-
Exercised		(2,090,226	)
Expired		(962,482	)
Outstanding at June 30, 2014		4,309,000
Issued		-
Exercised		-
Expired		-
Outstanding at June 30, 2015		4,309,000
Issued		23,978
Exercised		(1,887,325	)
Expired		-
Outstanding at June 30, 2016		2,445,653

On May 12, 2010, in conjunction with a public offering, the Company issued warrants to purchase 2.8 million shares of Common Stock, exercisable at $1.13 per share at any time prior to December 31, 2013. During the year ended June 30, 2014, 2.1 million of these warrants were exercised at $1.13 per share for cash proceeds of $2.4 million. Warrants to purchase 59 thousand shares of Common Stock expired unexercised on December 31, 2013.

In conjunction with this public offering, the Company also issued to the placement agent 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 year ended June 30, 2013 the placement agent elected cashless exercises of 36,186 warrants resulting in the issuance of 17,094 shares of Common Stock and exercised warrants to purchase 13,216 shares of Common Stock at $1.13 per share for cash proceeds of $14,934. Warrants to purchase 1,258 shares of Common Stock expired unexercised in May 2013.

On March 17, 2011, in conjunction with a private placement offering the Company issued warrants to purchase up to 4.3 million shares of Common Stock, exercisable at $2.6058 per share. The 4.3 million warrants are exercisable from September 18, 2011 through September 17, 2016. During the year ended June 30, 2016, approximately 1.9 million warrants were exercised under this offering for cash proceeds of approximately $4.92 million. The balance of exercisable warrants as of June 30, 2016 is 2.4 million.

3.9 million of the warrants issued under this private placement offering 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. As such the Company has recorded a liability of $3.7 million and $978 thousand at June 30, 2016 and 2015, respectively, for the estimated fair value of the warrants in its Consolidated Balance Sheet (see Note 11-Fair Value of Financial Instruments). Period to period changes in the fair value of these warrants are reflected through income.

In conjunction with the Loan and Security agreement (Note 9 – Line of Credit) and as a condition of the Bank entering into the First Amendment, the Company issued to the Bank warrants to purchase up to 45 thousand 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 issuance, the fair value of the warrants was $55 thousand using a Black Scholes model, which was recorded as prepaid interest and included in other assets on the Consolidated Balance Sheet, and was 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 thousand was recognized for the year ended June 30, 2014 relating to these warrants. As of June 30, 2016 none of these warrants have been exercised.

On March 29, 2016, the Company entered into a Loan and Security Agreement with a secondary bank (Note 9 – Line of Credit), providing a secured asset-based revolving line of credit in an amount of up to $12 million. In conjunction with the Loan and Security Agreement the company issued to the bank warrants to purchase up to 24 thousand shares of Common Stock of the Company. The warrants are exercisable at any time prior to March 29, 2021 at an exercise price of $5.00 per share. At the time of issuance the fair value of the warrants was estimated at $52 thousand using a Black Scholes model. This was recorded as a contra -debt item and is included in the line of credit on the Consolidated Balance Sheet, and is being amortized as a non-cash interest expense over the remaining term of the Line of Credit. Non-cash interest expense of $13 thousand has been recognized for the year ending June 30, 2016 related to this warrant.

INCOME TAXES (10K)

9 Months Ended

12 Months Ended

Mar. 31, 2017

Jun. 30, 2016

Income Tax Disclosure [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

8. INCOME TAXES

13. INCOME TAXES

The benefit (provision) for income taxes for the years ended June 30, 2016, 2015 and 2014 is comprised of the following:

($ in thousands)	2016			2015			2014
Current:
Federal	$	(7	)	$	(58	)	$	(21	)
State		(38	)		(6	)		-
		(45	)		(64	)		(21	)

Deferred:
Federal		407			365			20,970
State		253			(590	)		6,306
		660			(225	)		27,276

	$	615		$	(289	)	$	27,255

($ in thousands)	2016			2015			2014

Indicated benefit (provision) at federal statutory rate of 34%	$	2,523		$	272		$	(94	)
Effects of permanent differences		(2,040	(A)		(215	)		(8	)
State income taxes, net of federal benefit		199			(410	)		(18	)
Income tax credits		70			40			-
Changes related to prior years		-			187			-
Changes in valuation allowances		(137			(163	)		27,375
	$	615		$	(289	)	$	27,255

(A)

Increase in the effects of permanent differences due to the tax effect of the change in fair value of warrant liabilities in 2016

	June 30,
($ in thousands)	2016			2015
Deferred tax assets:
Net operating loss carryforwards	$	46,691		$	46,919
Asset reserves		1,713			792
Deferred research and development costs		1,356			1,009
Intangibles		539			606
Deferred gain on assets under sale-leaseback transaction		331			632
Stock-based compensation		377			224
Other		379			437
		51,386			50,619
Deferred tax liabilities:
Fixed assets		(528	)		(492	)
Intangibles and goodwill		-			(84	)
Deferred tax assets, net		50,858			50,043
Valuation allowance		(23,134	)		(22,997	)
Deferred tax assets (liabilties), net of allowance		27,724			27,046

Less current portion		2,271			1,258
Deferred tax assets (liabilties), non-current	$	25,453		$	25,788

STOCK BASED COMPENSATION PLANS (10K)

12 Months Ended

Jun. 30, 2016

STOCK BASED COMPENSATION PLANS

14. STOCK BASED COMPENSATION PLANS

The Company has three active stock based compensation plans at June 30, 2016 as shown in the table below:

Date Approved	Name of Plan	Type of Plan	Authorized Shares
June 2013	2013 Stock Incentive Plan	Stock		500,000
June 2014	2014 Stock Option Incentive Plan	Stock Options		750,000
June 2015	2015 Equity Incentive Plan	Stock & Stock Options		1,250,000
				2,500,000

As of June 30, 2016, the Company had reserved shares of Common Stock for future issuance for the following:

Exercise of Common Stock Warrants			2,445,653
Conversions of Preferred Stock and cumulative Preferred Stock dividends			99,999
Issuance under 2013 Stock Incentive Plan			162,330
Issuance under 2014 Stock Option Incentive Plan			737,215
Issuance under 2015 Stock Incentive Plan			1,250,000
Issuance to former Chief Executive Officer upon the occurrence of a USA Transaction			140,000
Total shares reserved for future issuance			4,835,197

STOCK OPTIONS

	Year Ended June 30, 2016			Year ended June 30, 2015			Year ended June 30, 2014
Expected volatility		59-66	%		78-79	%		79	%
Expected life	4.5 years			7 years			7 years
Expected dividends		0.00	%		0.00	%		0.00	%
Risk-free interest rate		1.46-1.49	%		1.59-2.04	%		2.22	%

The 2014 Stock Option Incentive Plan was approved in June 2014 therefore there was no stock based compensation expense related to stock options for the years ended June 30, 2014. Stock based compensation related to stock options for the years ended June 30, 2016 and June 30, 2015 was $338 and $370 thousand respectively. Unrecognized compensation related to stock option grants as of June 30, 2016 and June 30, 2015 was $167 thousand and $297 thousand respectively.

The following table provides information about outstanding options:

	For the Twelve Months Ended June 30,
	2016						2015						2014
	Shares			Weighted Average Grant Date Fair Value			Shares			Weighted Average Grant Date Fair Value			Shares		Weighted Average Grant Date Fair Value
Outstanding options, beginning of period		538,888			$	1.32		120,000			$	1.49		-			-
Granted		199,586			$	1.63		438,888			$	1.30		120,000		$	1.49
Forfeited		(95,000	)		$	1.80		(20,000	)		$	1.49		-			-
Excercised		(33,333	)		$	1.27
Outstanding options, end of period		610,141			$	1.35		538,888			$	1.33		120,000		$	1.49

The following table provides information related to options as of June 30, 2016:

		Options Outstanding				Options Exercisable
Range of Exercise Prices		Options Outstanding		Remaining Contractual Life		Shares Exercisable		Remaining Contractual Life		Weighted Average Exercise Price
$	1.62 to $1.68		75,000		5.51		25,002		5.51		1.65
$	1.80		295,555		5.16		195,555		5.16		1.8
$	2.05		100,000		4.97		66,670		4.97		2.05
$	2.09		10,000		5.58		3,333		5.58		2.09
$	2.75		25,000		5.77		8,333		5.77		2.75
$	2.94		75,000		6.53		-		-		-
$	3.38		29,586		6.06		-		-		-
			610,141		5.42		298,893		5.17		1.87

The following table provides information about unvested options:

	For the Twelve Months Ended June 30,
	2016						2015						2014
	Shares			Weighted Average Grant Date Fair Value			Shares			Weighted Average Grant Date Fair Value			Shares		Weighted Average Grant Date Fair Value
Unvested options, beginning of period		505,553			$	1.32		120,000			$	1.49		-			-
Granted		199,586			$	1.63		438,888			$	1.30		120,000		$	1.49
Vested		(298,891	)		$	1.31		(33,335	)		$	1.49		-			-
Forfeited		(95,000	)		$	1.80		(20,000	)		$	1.49		-			-
Unvested options, end of period		311,248			$	1.39		505,553			$	1.32		120,000		$	1.49

The following table provides information about options outstanding and exercisable options:

	As of June 30,
	2016						2015						2014
	Options Outstanding			Exercisable Options			Options Outstanding			Exercisable Options			Options Outstanding			Exercisable Options
Number			610,141			298,893			538,888			33,335			120,000			-
Weighted average exercise price		$	2.07		$	1.87		$	1.86		$	2.05		$	2.05			-
Aggregate intrinsic value		$	1,341,828		$	717,343		$	451,177		$	21,668		$	7,200			-
Weighted average contractual term		$	5.42			5.17			6.21			5.97			6.97			-
Share price as of June 30		$	4.27		$	4.27		$	2.70		$	2.70		$	2.11		$	2.11

STOCK GRANTS

A summary of the status of the Company’s nonvested common shares as of June 30, 2016, 2015, and 2014, and changes during the years then ended is presented below:

	Shares			Weighted-Average Grant-Date Fair Value

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
Granted		155,927			2.00
Vested		(181,134	)		1.89
Nonvested at June 30, 2015		18,604		$	1.88
Granted		131,558			3.04
Vested		(21,664	)		2.70
Nonvested at June 30, 2016		128,498		$	2.97

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

Commitments and Contingencies Disclosure [Abstract]

PREFERRED STOCK (10K)

12 Months Ended

Jun. 30, 2016

Preferred Stock [Abstract]

PREFERRED STOCK

15. 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, 2016 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, 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.

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, 2016. 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. The Series A Preferred Stock liquidation preference as of June 30, 2016 and 2015 is as follows:

($ in thousands)	June 30, 2016			June 30, 2015

For Shares outstanding at $10.00 per share		$	4,451		$	4,451
Cumulative unpaid dividends			13,657			12,989
		$	18,108		$	17,440

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, 2016, 2015 and 2014, no shares of Preferred Stock nor cumulative preferred dividends were converted into shares of common stock.

RETIREMENT PLAN (10K)	12 Months Ended
RETIREMENT PLAN (10K)	Jun. 30, 2016
Compensation and Retirement Disclosure [Abstract]
RETIREMENT PLAN	16. 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 2016, 2015 and 2014, 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, 2016, 2015 and 2014 approximated $189 thousand, $192 thousand and $168 thousand, respectively.

RELATED PARTY TRANSACTIONS (10K)	12 Months Ended
RELATED PARTY TRANSACTIONS (10K)	Jun. 30, 2016
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	17. RELATED PARTY TRANSACTIONS There were no related party transactions during the years ended June 30, 2016, 2015 and 2014.

COMMITMENTS AND CONTINGENCIES (10K)

9 Months Ended

12 Months Ended

Mar. 31, 2017

Jun. 30, 2016

COMMITMENTS AND CONTINGENCIES

10. COMMITMENTS AND CONTINGENCIES

18. COMMITMENTS AND CONTINGENCIES

SALE AND LEASEBACK TRANSACTIONS

Upon the completion of the sales, the Company computed gains on the sale of its ePort equipment as follows:

($ in thousands)	Year ended June 30,
	2015
Rental equipment sold, cost	$	3,873
Rental equipment sold, accumulated depreciation upon sale		(331	)
Rental equipment sold, net book value		3,542
Proceeds from sale		4,994
Gain on sale of rental equipment	$	1,452

($ in thousands)	Year ended June 30,
	2016			2015
Beginning balance	$	1,760		$	1,142
Gain on sale of rental equipment		-			1,452
Recognition of deferred gain		(860	)		(834	)
Ending balance		900			1,760
Less current portion		860			860
Non-current portion of deferred gain	$	40		$	900

OTHER LEASES

Rent expense under operating leases was approximately $479 thousand, $354 thousand and $372 thousand during the years ended June 30, 2016, 2015, and 2014, respectively.

SUMMARY OF LEASE OBLIGATIONS

Future minimum lease payments for fiscal years subsequent to June 30, 2016 under non-cancellable operating leases and capital leases are as follows:

($ in thousands)	Operating Leases from Sale Leaseback		Other Operating Leases		Total Operating Leases		Capital Leases


2017	$	2,641	$	552	$	3,193	$	299
2018		138		503		641		236
2019		-		498		498		142
2020		-		459		459		-
2021		-		468		468		-
Thereafter		-		963		963		-
Total minimum lease payments	$	2,779	$	3,443	$	6,222	$	677
Less Amount Representing interest								72
Present Value of net minimum lease payments								605
Less Current obligations under capital leases								255
Obligations under capital leases, less current portion							$	350

LITIGATION

REVISIONS OF PREVIOUSLY REPORTED CONSOLIDATED FINANCIAL STATEMENTS (10K)

12 Months Ended

Jun. 30, 2016

Change in Accounting Estimate [Abstract]

REVISIONS OF PREVIOUSLY REPORTED CONSOLIDATED FINANCIAL STATEMENTS

19. REVISIONS OF PREVIOUSLY REPORTED CONSOLIDATED FINANCIAL STATEMENTS

The Consolidated Statement of Shareholders’ Equity has been adjusted to reflect these additional common and preferred shares as of June 30, 2013. The June 30, 2015 Consolidated Balance Sheet has also been adjusted to reflect these additional shares; and the liquidation preference of preferred stock as of such date has been increased by $85 thousand.

The cumulative preferred dividends and the basic and diluted weighted average number of common shares outstanding in the Consolidated Statements of Operations for the fiscal years ended June 30, 2015 and 2014 have also been adjusted. The foregoing adjustments in basic and diluted weighted common shares outstanding did not affect the previously reported net income (loss) per common share-basic or diluted for the fiscal year ended June 30, 2015. For the fiscal year ended June 30, 2014 net income per common share-basic and diluted decreased from $.78 to $.77.

Revised Consolidated Statements of Operations

($ in thousands)	Year ended June 30, 2014
	As previously reported			Adjustment			As Revised
Cumulative preferred dividends	$	(664	)	$	(4	)	$	(668	)
Net income (loss) applicable to common shares	$	26,867		$	(4	)	$	26,863
Net earnings (loss) per common share basic	$	0.78		$	(0.01	)	$	0.77
Net earnings (loss) per common share diluted	$	0.78		$	(0.01	)	$	0.77
Basic weighted average number of common shares outstanding		34,613,497			54,272			34,667,769
Diluted weighted average number of common shares outstanding		34,613,497			396,062			35,009,559

($ in thousands)	Year ended June 30, 2015
	As previously reported				Adjustment				As Revised
Cumulative preferred dividends		$	(664	)		$	(4	)		$	(668	)
Net income (loss) applicable to common shares		$	(1,753	)		$	(4	)		$	(1,757	)
Basic and diluted weighted average number of common shares outstanding			35,663,386				55,825				35,719,211

Revised Consolidated Statements of Equity

($ in thousands)	Year ended June 30, 2014
Common Shares	As previously reported			Adjustment			As Revised
Stock based compensation
2010 Stock Incentive Plan		6,668			(3,334	)		3,334
2011 Stock Incentive Plan		51,667			(51,667	)		-
2012 Stock Incentive Plan		-			158,505			158,505
2013 Stock Incentive Plan		131,203			(75,393	)		55,810
Retirement of common stock		(49,311	)		(3,334	)		(52,645	)
Balance June 30, 2014		35,514,685			87,438			35,602,123

	Year ended June 30, 2015
Common Shares	As previously reported			Adjustment			As Revised
Stock based compensation
2011 Stock Incentive Plan		10,002			(10,002	)		-
2012 Stock Incentive Plan		88,991			(55,293	)		33,698
2013 Stock Incentive Plan		165,463			(5,722	)		159,741
2014 Stock Incentive Plan		-			-			-
Retirement of common stock		(31,899	)		-			(31,899	)
Balance June 30, 2015		35,747,242			16,421			35,763,663

UNAUDITED QUARTERLY DATA (10K)

12 Months Ended

Jun. 30, 2016

Quarterly Financial Data [Abstract]

UNAUDITED QUARTERLY DATA

20. UNAUDITED QUARTERLY DATA

	UNAUDITED
YEAR ENDED JUNE 30, 2016	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Year

Revenues	$	16,600		$	18,503		$	20,361		$	21,944		$	77,408

Gross profit	$	5,047		$	5,483		$	5,672		$	5,783		$	21,985

Operating income (loss)	$	112		$	594		$	(595	)	$	(1,578	)	$	(1,467	)

Net income (loss)	$	360		$	(874	)	$	(5,420	)	$	(872	)	$	(6,806	)

Cumulative preferred dividends	$	(334	)	$	-		$	(334	)	$	-		$	(668	)

Net income (loss) applicable to common shares	$	26		$	(874	)	$	(5,754	)	$	(872	)	$	(7,474	)

Net earnings (loss) per common share:
Basic	$	0.00		$	(0.02	)	$	(0.16	)	$	(0.02	)	$	(0.21	)

Diluted	$	0.00		$	(0.02	)	$	(0.16	)	$	(0.02	)	$	(0.21	)

Weighted average number of common shares outstanding:
Basic		35,848,395			35,909,933			36,161,626			37,325,681			36,309,047

Diluted		36,487,879			35,909,933			36,161,626			37,325,681			36,309,047

	UNAUDITED
YEAR ENDED JUNE 30, 2015	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Year

Revenues	$	12,253		$	12,821		$	15,358		$	17,645		$	58,077

Gross profit	$	3,135		$	3,733		$	5,146		$	4,809		$	16,823

Operating income (loss)	$	(667	)	$	51		$	731		$	(355	)	$	(240	)

Net income (loss)	$	(61	)	$	(261	)	$	(567	)	$	(200	)	$	(1,089	)

Cumulative preferred dividends	$	(334	)	$	-		$	(334	)	$	-		$	(668	)

Net income (loss) applicable to common shares	$	(395	)	$	(261	)	$	(901	)	$	(200	)	$	(1,757	)

Net earnings (loss) per common share
Basic	$	(0.01	)	$	(0.01	)	$	(0.03	)	$	(0.01	)	$	(0.05	)

Diluted	$	(0.01	)	$	(0.01	)	$	(0.03	)	$	(0.01	)	$	(0.05	)

Weighted average number of common shares outstanding:
Basic		35,651,732			35,716,848			35,747,979			35,761,370			35,719,211

Diluted		35,651,732			35,716,848			35,747,979			36,206,934			35,719,211

ACCOUNTING POLICIES (Q3) (Policies)

9 Months Ended

12 Months Ended

Mar. 31, 2017

Jun. 30, 2016

Business Description And Accounting Policies [Abstract]

CONSOLIDATION

USE OF ESTIMATES

CASH AND CASH EQUIVALENTS

CASH

The Company maintains its cash in bank deposit accounts, which may exceed federally insured limits at times.

CASH

The Company maintains its cash in bank deposit accounts, which may exceed federally insured limits at times.

ACCOUNTS RECEIVABLE AND ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS

ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS

PROPERTY AND EQUIPMENT, Net

INVENTORY, Net

Inventory consists of finished goods and packaging materials. The Company’s inventory is stated at the lower of cost (average cost basis) or market.

INVENTORY, Net

Inventory consists of finished goods and packaging materials. The Company’s inventory is stated at the lower of cost (average cost basis) or market.

The Company’s intangible assets include goodwill, trademarks, non-compete agreements, brand, developed technology and customer relationships.

GOODWILL AND INTANGIBLE ASSETS

The Company’s intangible assets include goodwill, trademarks, non-compete agreements, brand, developed technology and customer relationships.

ACCOUNTING FOR EQUITY AWARDS

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.

FAIR VALUE OF FINANCIAL INSTRUMENTS

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.

REVENUE RECOGNITION

ePort hardware is available to customers under the QuickStart program pursuant to which the customer would enter into a five-year non-cancelable lease with either the Company or a third-party leasing company for the devices. The Company qualifies for sales type lease accounting. Accordingly, the company recognizes a portion of lease payments as interest income. At the end of the lease period, the customer would have the option to purchase the device at its residual value.

PREFERRED STOCK

EARNINGS (LOSS) PER COMMON SHARE

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, 2016, 2015, and 2014.

SOFTWARE DEVELOPMENT COSTS

RECENT ACCOUNTING PRONOUNCEMENTS

The Company is evaluating whether the effects of the following recent accounting will have a material effect on the Company’s consolidated financial position, results of operations or cash flows.

In January 2017, the FASB issued ASU 2017-04 – “Intangibles-Goodwill and Other (Topic 350): Simplifying the test for Goodwill Impairment.”

RECENT ACCOUNTING PRONOUCEMENTS

RECLASSIFICATION

	Three months ended March 31, 2016						Nine months ended March 31, 2016
	Accounts Receivable			Finance Receivables			Accounts Receivable			Finance Receivables
Per Original Statement of Cash Flows	$	(1,872	)	$	(154	)	$	(3,352	)	$	547
Reclass of Unfunded Leases, beginning of period (starting BS)		(2,096	)		2,096			(1,026	)		1,026
Reclass of Finance Receivables, end of period		2,308			(2,308	)		2,308			(2,308	)
Impact from the reclassification		212			(212	)		1,282			(1,282	)
Adjusted Statement of Cash Flows	$	(1,660	)	$	(366	)	$	(2,070	)	$	(735	)

RECLASSIFICATION

($ in thousands)	June 30, 2015 Balances
Consolidated Balance Sheet Line Items	As previously reported			Reclassification			As reclassified

Accounts Receivable, net of allowance for doubtful accounts:
Reclassification of balances included in accounts payable to accounts receivable				$	2,114
Reclassification of the allowance for doubtful accounts in accounts payable					(815	)
	$	4,672		$	1,299		$	5,971

Allowance for Doubtful Accounts:
Reclassification of the allowance for doubtful accounts in accounts payable	$	(494	)	$	(815	)	$	(1,309	)

Accounts Payable:
Reclassification of balances included in accounts payable to accounts receivable				$	2,114
Reclassification of the allowance for doubtful accounts in accounts payable					(815	)
	$	9,243		$	1,299		$	10,542

($ in thousands)	For the fiscal year ended June 30, 2015
Consolidated Statement of Cash Flow Line Items	As previously reported			Reclassification			As reclassified

Accounts Receivable
Reclassification of cash provided by and included in accounts payable to accounts receivable	$	(2,517	)	$	(22	)	$	(2,539	)

Accounts Payable:
Reclassification of cash used in and included in accounts payable to accounts receivable	$	919		$	22		$	941

($ in thousands)	For the fiscal year ended June 30, 2014
Consolidated Statement of Cash Flow Line Items	As previously reported			Reclassification			As reclassified

Accounts Receivable
Reclassification of cash provided by and included in accounts payable to accounts receivable	$	(157	)	$	(47	)	$	(204	)

Accounts Payable:
Reclassification of cash used in and included in accounts payable to accounts receivable	$	413		$	47		$	460

ACCOUNTING POLICIES (10K) (Policies)

9 Months Ended

12 Months Ended

Mar. 31, 2017

Jun. 30, 2016

Business Description And Accounting Policies [Abstract]

CONSOLIDATION

USE OF ESTIMATES

CASH

The Company maintains its cash in bank deposit accounts, which may exceed federally insured limits at times.

CASH

The Company maintains its cash in bank deposit accounts, which may exceed federally insured limits at times.

ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS

PROPERTY AND EQUIPMENT, Net

INVENTORY, Net

Inventory consists of finished goods and packaging materials. The Company’s inventory is stated at the lower of cost (average cost basis) or market.

INVENTORY, Net

Inventory consists of finished goods and packaging materials. The Company’s inventory is stated at the lower of cost (average cost basis) or market.

The Company’s intangible assets include goodwill, trademarks, non-compete agreements, brand, developed technology and customer relationships.

GOODWILL AND INTANGIBLE ASSETS

The Company’s intangible assets include goodwill, trademarks, non-compete agreements, brand, developed technology and customer relationships.

LONG-LIVED ASSETS

RESEARCH AND DEVELOPMENT EXPENSES

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.

FAIR VALUE OF FINANCIAL INSTRUMENTS

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.

CONCENTRATION OF RISKS

REVENUE RECOGNITION

ePort hardware is available to customers under the QuickStart program pursuant to which the customer would enter into a five-year non-cancelable lease with either the Company or a third-party leasing company for the devices. The Company qualifies for sales type lease accounting. Accordingly, the company recognizes a portion of lease payments as interest income. At the end of the lease period, the customer would have the option to purchase the device at its residual value.

EQUIPMENT RENTAL

WARRANTY COSTS

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 equipment.

ADVERTISING

Advertising costs are expensed as incurred. Advertising expense was $0.3 million, $0.2 million, and $0.2 million in the fiscal years ended June 30, 2016, 2015, and 2014, respectively.

ACCOUNTING FOR EQUITY AWARDS

Litigation Costs

EARNINGS (LOSS) PER COMMON SHARE

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, 2016, 2015, and 2014.

SOFTWARE DEVELOPMENT COSTS

OTHER COMPREHENSIVE INCOME

RECENT ACCOUNTING PRONOUCEMENTS

RECENT ACCOUNTING PRONOUNCEMENTS

The Company is evaluating whether the effects of the following recent accounting will have a material effect on the Company’s consolidated financial position, results of operations or cash flows.

In January 2017, the FASB issued ASU 2017-04 – “Intangibles-Goodwill and Other (Topic 350): Simplifying the test for Goodwill Impairment.”

RECENT ACCOUNTING PRONOUCEMENTS

RECLASSIFICATION

	Three months ended March 31, 2016						Nine months ended March 31, 2016
	Accounts Receivable			Finance Receivables			Accounts Receivable			Finance Receivables
Per Original Statement of Cash Flows	$	(1,872	)	$	(154	)	$	(3,352	)	$	547
Reclass of Unfunded Leases, beginning of period (starting BS)		(2,096	)		2,096			(1,026	)		1,026
Reclass of Finance Receivables, end of period		2,308			(2,308	)		2,308			(2,308	)
Impact from the reclassification		212			(212	)		1,282			(1,282	)
Adjusted Statement of Cash Flows	$	(1,660	)	$	(366	)	$	(2,070	)	$	(735	)

RECLASSIFICATION

($ in thousands)	June 30, 2015 Balances
Consolidated Balance Sheet Line Items	As previously reported			Reclassification			As reclassified

Accounts Receivable, net of allowance for doubtful accounts:
Reclassification of balances included in accounts payable to accounts receivable				$	2,114
Reclassification of the allowance for doubtful accounts in accounts payable					(815	)
	$	4,672		$	1,299		$	5,971

Allowance for Doubtful Accounts:
Reclassification of the allowance for doubtful accounts in accounts payable	$	(494	)	$	(815	)	$	(1,309	)

Accounts Payable:
Reclassification of balances included in accounts payable to accounts receivable				$	2,114
Reclassification of the allowance for doubtful accounts in accounts payable					(815	)
	$	9,243		$	1,299		$	10,542

($ in thousands)	For the fiscal year ended June 30, 2015
Consolidated Statement of Cash Flow Line Items	As previously reported			Reclassification			As reclassified

Accounts Receivable
Reclassification of cash provided by and included in accounts payable to accounts receivable	$	(2,517	)	$	(22	)	$	(2,539	)

Accounts Payable:
Reclassification of cash used in and included in accounts payable to accounts receivable	$	919		$	22		$	941

($ in thousands)	For the fiscal year ended June 30, 2014
Consolidated Statement of Cash Flow Line Items	As previously reported			Reclassification			As reclassified

Accounts Receivable
Reclassification of cash provided by and included in accounts payable to accounts receivable	$	(157	)	$	(47	)	$	(204	)

Accounts Payable:
Reclassification of cash used in and included in accounts payable to accounts receivable	$	413		$	47		$	460

ACCOUNTING POLICIES (Q3) (Tables)

9 Months Ended

Mar. 31, 2017

Schedule of amounts recorded as accounts receivable in the consolidated balance sheets

	Three months ended March 31, 2016						Nine months ended March 31, 2016
	Accounts Receivable			Finance Receivables			Accounts Receivable			Finance Receivables
Per Original Statement of Cash Flows	$	(1,872	)	$	(154	)	$	(3,352	)	$	547
Reclass of Unfunded Leases, beginning of period (starting BS)		(2,096	)		2,096			(1,026	)		1,026
Reclass of Finance Receivables, end of period		2,308			(2,308	)		2,308			(2,308	)
Impact from the reclassification		212			(212	)		1,282			(1,282	)
Adjusted Statement of Cash Flows	$	(1,660	)	$	(366	)	$	(2,070	)	$	(735	)

FINANCE RECEIVABLES (Q3) (Tables)

9 Months Ended

12 Months Ended

Mar. 31, 2017

Jun. 30, 2016

Schedule of finance receivables

($ in thousands)	March 31, 2017		June 30, 2016
		(unaudited)
Total finance receivables	$	9,605		$	7,306
Less current portion		2,057			3,588
Non-current portion of finance receivables	$	7,548		$	3,718

($ in thousands)	June 30, 2016			June 30, 2015

Total finance receivables		$	7,306		$	4,639
Less current portion			3,588			941
Non-current portion of finance receivables		$	3,718		$	3,698

Schedule of credit quality indicators

Credit Quality Indicators

Credit risk profile based on payment activity: ($ in thousands)	March 31, 2017		June 30, 2016
		(unaudited)
Performing	$	9,527		$	7,174
Nonperforming		78			132
Total	$	9,605		$	7,306

Credit Quality Indicators

	June 30, 2016		June 30, 2015
($ in thousands)
Performing	$	7,174	$	4,619
Nonperforming		132		20
Total	$	7,306	$	4,639

Schedule of age analysis of past due finance receivables

Age Analysis of Past Due Finance Receivables

As of March 31, 2017

($ in thousands)		31 – 60 Days Past Due				61 – 90 DaysPast Due				Greater than 90 Days Past Due				Total Past Due				Current				Total Finance Receivables
QuickStart Leases		$	31			$	1			$	21			$	53			$	9,552			$	9,605

Age Analysis of Past Due Finance Receivables

As of June 30, 2016

($ in thousands)		31 – 60 Days Past Due				61 – 90 Days Past Due				Greater than 90 Days Past Due				Total Past Due				Current				Total Finance Receivables
QuickStart Leases		$	98			$	31			$	3			$	132			$	7,174			$	7,306

Age Analysis of Past Due Finance Receivables

As of June 30, 2016

($ in thousands)	31 – 60 Days Past Due		61 – 90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Total Finance Receivables

QuickStart Leases	$	98	$	31	$	3	$	132	$	7,174	$	7,306

Age Analysis of Past Due Finance Receivables

As of June 30, 2015

($ in thousands)	Days Past 31 – 60 Due		61 – 90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Total Finance Receivables

QuickStart Leases	$	-	$	16	$	5	$	21	$	4,618	$	4,639

GOODWILL AND INTANGIBLE ASSETS (Q3) (Tables)

9 Months Ended

12 Months Ended

Mar. 31, 2017

Jun. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of final purchase price allocation

Consideration:
Fair value of total consideration paid in cash	$	5,625

Acquisition related costs:	$	842

Recognized amounts of identifiable assets acquired and liabilities assumed:

Financial Assets:
Accounts Receivable		3
Finance Receivables		839
Other Current Assets		20
Deferred Income Taxes		18
		880

Property, Plant & Equipment		81

Identifiable Intangible Assets:
Developed Technology		639
Customer Relationships		149
Brand		95
Noncompete Agreement		2
Fair Value of Intangible Assets		885

Financial Liabilities
Accrued Liabilities	$	(50	)

Total identifiable net assets	$	1,796

Goodwill	$	3,829

Total Fair Value	$	5,625

Schedule of intangible asset balances

($ in thousands)	Balance June 30, 2016		Additions/ Adjustments			Amortization			Balance March 31, 2017		Amortization Period
Intangible Assets:
Non-compete agreements	$	1	$	—		$	(1	)	$	—	2 years
Brand		79		—			(24	)		55	3 years
Developed technology		576		—			(96	)		480	5 years
Customer relationships		142		—			(11	)		131	10 years
Total Intangible Assets	$	798	$	—		$	(132	)	$	666

Goodwill	$	11,703	$	(211	)	$	—		$	11,492	Indefinite

	Beginning		Year ended June 30, 2016						Ending
($ in thousands)	Balance		Additions/						Balance		Amortization
	July 1, 2015		Adjustments			Amortization			June 30, 2016		Period
Intangible Assets:
Trademarks - Indefinite	$	432	$	(432	)(1)	$	-		$	-	Indefinite
Non-compete agreements		-		2			(1	)		1	2 years
Brand		-		95			(16	)		79	3 years
Developed technology		-		639			(63	)		576	5 years
Customer relationships		-		149			(7	)		142	10 years
Total Intangible Assets	$	432	$	453		$	(87	)	$	798

Goodwill		7,663		4,040			-			11,703	Indefinite

Total Intangible Assets & Goodwill	$	8,095	$	4,493		$	(87	)	$	12,501

	Beginning		Year ended June 30, 2015				Ending
($ in thousands)	Balance		Additions/				Balance		Amortization
	July 1, 2014		Adjustments		Amortization		June 30, 2015		Period
Intangible assets:
Trademarks - Indefinite	$	432		-		-	$	432	Indefinite
Total Intangible Assets	$	432	$	-	$	-	$	432

Goodwill		7,663		-		-		7,663	Indefinite

Total	$	8,095	$	-	$	-	$	8,095

(1)

The related dollar sales volume;

The percentage royalty on sales;

The adjustment for taxes;

The remaining useful economic life;

The percentage return on investment; and,

The tax amortization benefit.

FAIR VALUE OF FINANCIAL INSTRUMENTS (Q3) (Tables)

9 Months Ended

12 Months Ended

Mar. 31, 2017

Jun. 30, 2016

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

	Three months ended March 31,						Nine months ended March 31,
($ in thousands)	2017		2016				2017				2016
Beginning balance	$	—		$	(1,865	)		$	(3,739	)		$	(978	)
Increase due to change in fair value of warrant liabilities		—			(4,805	)			(1,490	)			(5,692	)
Reclass of fair value of warranty liability to common stock upon exercise of warrants		—			706				5,229				706
Ending balance	$	—		$	(5,964	)		$	—			$	(5,964	)

($ in thousands)	For Year Ended June 30,
	2016				2015

Beginning balance		$	(978	)		$	(585	)
Increase due to change in fair value of warrant liabilities			(5,674	)			(393	)
Reduction due to warrant exercises			2,913				-
Ending balance		$	(3,739	)		$	(978	)

EQUITY (Q3) (Tables)

9 Months Ended

12 Months Ended

Mar. 31, 2017

Jun. 30, 2016

Equity [Abstract]

Schedule of warrant activity

	Three months ended March 31,					Nine months ended March 31,
	2017		2016			2017			2016
Beginning balance		23,978		4,298,000			2,445,653			4,309,000
Issued		—		23,978			—			23,978
Exercised		—		(634,100	)		(2,401,408	)		(645,100	)
Expired		—		—			—			—
Cancelled		—		—			(20,267	)		—
Ending balance		23,978		3,687,878			23,978			3,687,878

	Warrants
Outstanding at June 30, 2013		7,361,708
Issued		-
Exercised		(2,090,226	)
Expired		(962,482	)
Outstanding at June 30, 2014		4,309,000
Issued		-
Exercised		-
Expired		-
Outstanding at June 30, 2015		4,309,000
Issued		23,978
Exercised		(1,887,325	)
Expired		-
Outstanding at June 30, 2016		2,445,653

Schedule of stock option granted weighted average assumptions

	Nine months ended March 31,
	2017			2016
Expected volatility		49 - 50	%		59 - 66	%
Expected life	3 - 4 years			4 - 4.5 years
Expected dividends		—	%		—	%
Risk-free interest rate		1.06 - 1.90	%		1.34 - 1.49	%
Number of options granted		125,080			194,586
Weighted average exercise price	$	4.17		$	3.21
Weighted average grant date fair value	$	1.68		$	1.64

	Year Ended June 30, 2016			Year ended June 30, 2015			Year ended June 30, 2014
Expected volatility		59-66	%		78-79	%		79	%
Expected life	4.5 years			7 years			7 years
Expected dividends		0.00	%		0.00	%		0.00	%
Risk-free interest rate		1.46-1.49	%		1.59-2.04	%		2.22	%

Schedule of stock based compensation related to the LTI plans

	Three months ended March 31,				Nine months ended March 31,
($ in thousands, except per share data)	2017		2016		2017		2016
FY17 LTI Plan	$	81	$	—	$	236	$	—
FY16 LTI Plan		23		24		73		134
FY15 LTI Plan		3		8		6		48
FY14 LTI Plan		—		2		—		10
Total	$	107	$	34	$	315	$	192

ACCOUNTING POLICIES (10K) (Tables)

12 Months Ended

Jun. 30, 2016

Schedule of reclassification accounts receivable allowance for doubtful accounts payable

($ in thousands)	June 30, 2015 Balances
Consolidated Balance Sheet Line Items	As previously reported			Reclassification			As reclassified

Accounts Receivable, net of allowance for doubtful accounts:
Reclassification of balances included in accounts payable to accounts receivable				$	2,114
Reclassification of the allowance for doubtful accounts in accounts payable					(815	)
	$	4,672		$	1,299		$	5,971

Allowance for Doubtful Accounts:
Reclassification of the allowance for doubtful accounts in accounts payable	$	(494	)	$	(815	)	$	(1,309	)

Accounts Payable:
Reclassification of balances included in accounts payable to accounts receivable				$	2,114
Reclassification of the allowance for doubtful accounts in accounts payable					(815	)
	$	9,243		$	1,299		$	10,542

($ in thousands)	For the fiscal year ended June 30, 2015
Consolidated Statement of Cash Flow Line Items	As previously reported			Reclassification			As reclassified

Accounts Receivable
Reclassification of cash provided by and included in accounts payable to accounts receivable	$	(2,517	)	$	(22	)	$	(2,539	)

Accounts Payable:
Reclassification of cash used in and included in accounts payable to accounts receivable	$	919		$	22		$	941

($ in thousands)	For the fiscal year ended June 30, 2014
Consolidated Statement of Cash Flow Line Items	As previously reported			Reclassification			As reclassified

Accounts Receivable
Reclassification of cash provided by and included in accounts payable to accounts receivable	$	(157	)	$	(47	)	$	(204	)

Accounts Payable:
Reclassification of cash used in and included in accounts payable to accounts receivable	$	413		$	47		$	460

ACQUISITION (10K) (Tables)

12 Months Ended

Jun. 30, 2016

Business Combinations [Abstract]

Schedule of fair values of the assets acquired and liabilities

($ in thousands)

Consideration:Fair value of total consideration paid in cash	$	5,625

Acquisition / non-recurring acquisition expenses:	$	842

Recognized amounts of identifiable assets acquired and liabilities assumed:

Financial Assets:
Accounts receivable	$	3
Finance receivables		628
Other current assets		20
Deferred income taxes		18
		669

Property, plant & equipment		81

Identifiable intangible assets:
Developed technology		639
Customer relationships		149
Brand		95
Noncompete agreements		2
Fair value of intangible assets		885

Financial liabilities
Accrued liabilities		(50	)

Total identifiable net assets		1,585

Goodwill		4,040

Total Fair Value	$	5,625

EARNINGS PER SHARE CALCULATION (10K) (Tables)

12 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Schedule of basic earnings per share and diluted earnings per share

	Year Ended June 30
($ in thousands, except per share data)	2016			2015			2014

Numerator for basic and diluted earnings per share
Net income (loss)	$	(6,806	)	$	(1,089	)	$	27,531
Preferred dividends		(668	)		(668	)		(668	)
Net income (loss) available to common shareholders	$	(7,474	)	$	(1,757	)	$	26,863

Denominator for basic earnings per share - Weighted average shares outstanding		36,309,047			35,719,211			34,667,769
Effect of dilutive potential common shares		-			-			341,790
Denominator for diluted earnings per share - Adjusted weighted average shares outstanding		36,309,047			35,719,211	#		35,009,559

Basic earnings (loss) per share	$	(0.21	)	$	(0.05	)	$	0.77

Diluted earnings (loss) per share	$	(0.21	)	$	(0.05	)	$	0.77

FINANCE RECEIVABLES (10K) (Tables)

9 Months Ended

12 Months Ended

Mar. 31, 2017

Jun. 30, 2016

Schedule of finance receivables

($ in thousands)	March 31, 2017		June 30, 2016
		(unaudited)
Total finance receivables	$	9,605		$	7,306
Less current portion		2,057			3,588
Non-current portion of finance receivables	$	7,548		$	3,718

($ in thousands)	June 30, 2016			June 30, 2015

Total finance receivables		$	7,306		$	4,639
Less current portion			3,588			941
Non-current portion of finance receivables		$	3,718		$	3,698

Schedule of credit quality indicators

Credit Quality Indicators

Credit risk profile based on payment activity: ($ in thousands)	March 31, 2017		June 30, 2016
		(unaudited)
Performing	$	9,527		$	7,174
Nonperforming		78			132
Total	$	9,605		$	7,306

Credit Quality Indicators

	June 30, 2016		June 30, 2015
($ in thousands)
Performing	$	7,174	$	4,619
Nonperforming		132		20
Total	$	7,306	$	4,639

Schedule of age analysis of past due finance receivables

Age Analysis of Past Due Finance Receivables

As of March 31, 2017

($ in thousands)		31 – 60 Days Past Due				61 – 90 DaysPast Due				Greater than 90 Days Past Due				Total Past Due				Current				Total Finance Receivables
QuickStart Leases		$	31			$	1			$	21			$	53			$	9,552			$	9,605

Age Analysis of Past Due Finance Receivables

As of June 30, 2016

($ in thousands)		31 – 60 Days Past Due				61 – 90 Days Past Due				Greater than 90 Days Past Due				Total Past Due				Current				Total Finance Receivables
QuickStart Leases		$	98			$	31			$	3			$	132			$	7,174			$	7,306

Age Analysis of Past Due Finance Receivables

As of June 30, 2016

($ in thousands)	31 – 60 Days Past Due		61 – 90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Total Finance Receivables

QuickStart Leases	$	98	$	31	$	3	$	132	$	7,174	$	7,306

Age Analysis of Past Due Finance Receivables

As of June 30, 2015

($ in thousands)	Days Past 31 – 60 Due		61 – 90 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Current		Total Finance Receivables

QuickStart Leases	$	-	$	16	$	5	$	21	$	4,618	$	4,639

Schedule of financing receivable

($ in thousands)

2017	$	3,588
2018		1,246
2019		1,246
2020		944
2021 and beyond		282
	$	7,306

PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Jun. 30, 2016

Property, Plant and Equipment [Abstract]

Schedule of property and equipment

	Useful	June 30, 2016
($ in thousands)	Lives	Cost		Accumulated Depreciation			Net
Computer equipment and software	3-7 years	$	5,506	$	(4,374	)	$	1,132
Property and equipment used for rental program	5 years		26,648		(18,246	)		8,402
Furniture and equipment	3-7 years		874		(654	)		220
Leasehold improvements	Lesser of life or lease term		575		(564	)		11
		$	33,603	$	(23,838	)	$	9,765

	Useful	June 30, 2015
($ in thousands)	Lives	Cost		Accumulated Depreciation			Net
Computer equipment and purchased software	3-7 years	$	4,670	$	(4,017	)	$	653
Property and equipment used for rental program	5 years		26,469		(14,476	)		11,993
Furniture and equipment	3-7 years		723		(572	)		151
Leasehold improvements	Lesser of life or lease term		575		(503	)		72
		$	32,437	$	(19,568	)	$	12,869

GOODWILL AND INTANGIBLE ASSETS (10K) (Tables)

9 Months Ended

12 Months Ended

Mar. 31, 2017

Jun. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of intangible asset balances

($ in thousands)	Balance June 30, 2016		Additions/ Adjustments			Amortization			Balance March 31, 2017		Amortization Period
Intangible Assets:
Non-compete agreements	$	1	$	—		$	(1	)	$	—	2 years
Brand		79		—			(24	)		55	3 years
Developed technology		576		—			(96	)		480	5 years
Customer relationships		142		—			(11	)		131	10 years
Total Intangible Assets	$	798	$	—		$	(132	)	$	666

Goodwill	$	11,703	$	(211	)	$	—		$	11,492	Indefinite

	Beginning		Year ended June 30, 2016						Ending
($ in thousands)	Balance		Additions/						Balance		Amortization
	July 1, 2015		Adjustments			Amortization			June 30, 2016		Period
Intangible Assets:
Trademarks - Indefinite	$	432	$	(432	)(1)	$	-		$	-	Indefinite
Non-compete agreements		-		2			(1	)		1	2 years
Brand		-		95			(16	)		79	3 years
Developed technology		-		639			(63	)		576	5 years
Customer relationships		-		149			(7	)		142	10 years
Total Intangible Assets	$	432	$	453		$	(87	)	$	798

Goodwill		7,663		4,040			-			11,703	Indefinite

Total Intangible Assets & Goodwill	$	8,095	$	4,493		$	(87	)	$	12,501

	Beginning		Year ended June 30, 2015				Ending
($ in thousands)	Balance		Additions/				Balance		Amortization
	July 1, 2014		Adjustments		Amortization		June 30, 2015		Period
Intangible assets:
Trademarks - Indefinite	$	432		-		-	$	432	Indefinite
Total Intangible Assets	$	432	$	-	$	-	$	432

Goodwill		7,663		-		-		7,663	Indefinite

Total	$	8,095	$	-	$	-	$	8,095

(1)

The related dollar sales volume;

The percentage royalty on sales;

The adjustment for taxes;

The remaining useful economic life;

The percentage return on investment; and,

The tax amortization benefit.

Schedule of amortizable intangible asset

($ in thousands)	Cost			Accumulated Amortization				Net Book Value

Non-compete agreements		$	2		$	(1	)		$	1
Brand			95			(16	)		$	79
Developed Technology			639			(63	)		$	576
Customer Relationships			149			(7	)		$	142
		$	885		$	(87	)		$	798

Schedule of estimated annual amortization expense

2017	$	175
2018		175
2019		159
2020		143
2021		79
Thereafter		67
	$	798

ACCRUED EXPENSES (10K) (Tables)

12 Months Ended

Jun. 30, 2016

Accrued Liabilities [Abstract]

Schedule of accrued expenses

($ in thousands)	June 30, 2016			June 30, 2015

Accrued compensation and related sales commissions	$	1,268		$	673
Accrued professional fees		809			301
Accrued taxes and filing fees		795			505
Advanced customer billings		236			390
Accrued rent		2			75
Accrued other		363			213
		3,473			2,157
Less current portion		(3,458	)		(2,108	)
	$	15		$	49

LINE OF CREDIT (10K) (Tables)

12 Months Ended

Jun. 30, 2016

Line Of Credit Facility [Abstract]

Schedule of line of credit facilities

($ in thousands)	For year ended June 30,
	2016			2015
Principal balance at period-end	$	7,217		$	4,000
Unamortized discount		(98	)		-
Line of credit, net	$	7,119		$	4,000
Maximum amount outstanding at any month end	$	7,217		$	5,000
Average balance outstanding during the period	$	4,959		$	4,100
Weighted-average interest rate:
As of the period-end		5.8	%		5.3	%
Paid during the period		5.5	%		5.3	%

LONG-TERM DEBT (10K) (Tables)

12 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Schedule of long-term debt

($ in thousands)	June 30, 2016			June 30, 2015

Assignment of QuickStart Leases		$	1,600		$	1,994
Capital lease obligations			605			338
		$	2,205		$	2,332
Less current portion			629			478
		$	1,576		$	1,854

Schedule of maturities of long-term debt

($ in thousands)

2017	$	629
2018		625
2019		588
2020		358
2021		5
	$	2,205

FAIR VALUE OF FINANCIAL INSTRUMENTS (10K) (Tables)

9 Months Ended

12 Months Ended

Mar. 31, 2017

Jun. 30, 2016

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

($ in thousands) June 30, 2016	Level 1		Level 2			Level 3			Total

Common stock warrant liability, 2.2 million warrants exercisable at $2.6058 from September 17, 2011 through September 17, 2016	$	-		$	-		$	3,739		$	3,739

June 30, 2015	Level 1		Level 2		Level 3		Total

Common stock warrant liability, 3.9 million warrants exercisable at $2.6058 from September 17, 2011 through September 17, 2016	$	-	$	-	$	978	$	978

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

	Three months ended March 31,						Nine months ended March 31,
($ in thousands)	2017		2016				2017				2016
Beginning balance	$	—		$	(1,865	)		$	(3,739	)		$	(978	)
Increase due to change in fair value of warrant liabilities		—			(4,805	)			(1,490	)			(5,692	)
Reclass of fair value of warranty liability to common stock upon exercise of warrants		—			706				5,229				706
Ending balance	$	—		$	(5,964	)		$	—			$	(5,964	)

($ in thousands)	For Year Ended June 30,
	2016				2015

Beginning balance		$	(978	)		$	(585	)
Increase due to change in fair value of warrant liabilities			(5,674	)			(393	)
Reduction due to warrant exercises			2,913				-
Ending balance		$	(3,739	)		$	(978	)

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

Schedule exercise prices and expiration dates for warrants

WARRANTS (10K) (Tables)

9 Months Ended

12 Months Ended

Mar. 31, 2017

Jun. 30, 2016

Warrants [Abstract]

Warrants Outstanding		Exercise Price Per Share		Expiration Date
	2,376,675	$	2.61	September 18, 2016
	45,000	$	2.10	December 31, 2017
	23,978	$	5.00	March 29, 2021
	2,445,653

Schedule of common stock warrant activity

	Three months ended March 31,					Nine months ended March 31,
	2017		2016			2017			2016
Beginning balance		23,978		4,298,000			2,445,653			4,309,000
Issued		—		23,978			—			23,978
Exercised		—		(634,100	)		(2,401,408	)		(645,100	)
Expired		—		—			—			—
Cancelled		—		—			(20,267	)		—
Ending balance		23,978		3,687,878			23,978			3,687,878

	Warrants
Outstanding at June 30, 2013		7,361,708
Issued		-
Exercised		(2,090,226	)
Expired		(962,482	)
Outstanding at June 30, 2014		4,309,000
Issued		-
Exercised		-
Expired		-
Outstanding at June 30, 2015		4,309,000
Issued		23,978
Exercised		(1,887,325	)
Expired		-
Outstanding at June 30, 2016		2,445,653

INCOME TAXES (10K) (Tables)

12 Months Ended

Jun. 30, 2016

Income Tax Disclosure [Abstract]

Schedule of benefit (provision) for income taxes

($ in thousands)	2016			2015			2014
Current:
Federal	$	(7	)	$	(58	)	$	(21	)
State		(38	)		(6	)		-
		(45	)		(64	)		(21	)

Deferred:
Federal		407			365			20,970
State		253			(590	)		6,306
		660			(225	)		27,276

	$	615		$	(289	)	$	27,255

Schedule of income tax benefit in the provision for income taxes

($ in thousands)	2016			2015			2014

Indicated benefit (provision) at federal statutory rate of 34%	$	2,523		$	272		$	(94	)
Effects of permanent differences		(2,040	(A)		(215	)		(8	)
State income taxes, net of federal benefit		199			(410	)		(18	)
Income tax credits		70			40			-
Changes related to prior years		-			187			-
Changes in valuation allowances		(137			(163	)		27,375
	$	615		$	(289	)	$	27,255

(A)

Increase in the effects of permanent differences due to the tax effect of the change in fair value of warrant liabilities in 2016

Schedule of deferred tax assets and liabilities

	June 30,
($ in thousands)	2016			2015
Deferred tax assets:
Net operating loss carryforwards	$	46,691		$	46,919
Asset reserves		1,713			792
Deferred research and development costs		1,356			1,009
Intangibles		539			606
Deferred gain on assets under sale-leaseback transaction		331			632
Stock-based compensation		377			224
Other		379			437
		51,386			50,619
Deferred tax liabilities:
Fixed assets		(528	)		(492	)
Intangibles and goodwill		-			(84	)
Deferred tax assets, net		50,858			50,043
Valuation allowance		(23,134	)		(22,997	)
Deferred tax assets (liabilties), net of allowance		27,724			27,046

Less current portion		2,271			1,258
Deferred tax assets (liabilties), non-current	$	25,453		$	25,788

STOCK BASED COMPENSATION PLANS (10K) (Tables)

9 Months Ended

12 Months Ended

Mar. 31, 2017

Jun. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of stock based compensation plans

Date Approved	Name of Plan	Type of Plan	Authorized Shares
June 2013	2013 Stock Incentive Plan	Stock		500,000
June 2014	2014 Stock Option Incentive Plan	Stock Options		750,000
June 2015	2015 Equity Incentive Plan	Stock & Stock Options		1,250,000
				2,500,000

Schedule of common stock for future issuance

Exercise of Common Stock Warrants			2,445,653
Conversions of Preferred Stock and cumulative Preferred Stock dividends			99,999
Issuance under 2013 Stock Incentive Plan			162,330
Issuance under 2014 Stock Option Incentive Plan			737,215
Issuance under 2015 Stock Incentive Plan			1,250,000
Issuance to former Chief Executive Officer upon the occurrence of a USA Transaction			140,000
Total shares reserved for future issuance			4,835,197

Schedule of stock option granted weighted average assumptions

	Nine months ended March 31,
	2017			2016
Expected volatility		49 - 50	%		59 - 66	%
Expected life	3 - 4 years			4 - 4.5 years
Expected dividends		—	%		—	%
Risk-free interest rate		1.06 - 1.90	%		1.34 - 1.49	%
Number of options granted		125,080			194,586
Weighted average exercise price	$	4.17		$	3.21
Weighted average grant date fair value	$	1.68		$	1.64

	Year Ended June 30, 2016			Year ended June 30, 2015			Year ended June 30, 2014
Expected volatility		59-66	%		78-79	%		79	%
Expected life	4.5 years			7 years			7 years
Expected dividends		0.00	%		0.00	%		0.00	%
Risk-free interest rate		1.46-1.49	%		1.59-2.04	%		2.22	%

Schedule of options outstanding

	For the Twelve Months Ended June 30,
	2016						2015						2014
	Shares			Weighted Average Grant Date Fair Value			Shares			Weighted Average Grant Date Fair Value			Shares		Weighted Average Grant Date Fair Value
Outstanding options, beginning of period		538,888			$	1.32		120,000			$	1.49		-			-
Granted		199,586			$	1.63		438,888			$	1.30		120,000		$	1.49
Forfeited		(95,000	)		$	1.80		(20,000	)		$	1.49		-			-
Excercised		(33,333	)		$	1.27
Outstanding options, end of period		610,141			$	1.35		538,888			$	1.33		120,000		$	1.49

Schedule of information related to options

		Options Outstanding				Options Exercisable
Range of Exercise Prices		Options Outstanding		Remaining Contractual Life		Shares Exercisable		Remaining Contractual Life		Weighted Average Exercise Price
$	1.62 to $1.68		75,000		5.51		25,002		5.51		1.65
$	1.80		295,555		5.16		195,555		5.16		1.8
$	2.05		100,000		4.97		66,670		4.97		2.05
$	2.09		10,000		5.58		3,333		5.58		2.09
$	2.75		25,000		5.77		8,333		5.77		2.75
$	2.94		75,000		6.53		-		-		-
$	3.38		29,586		6.06		-		-		-
			610,141		5.42		298,893		5.17		1.87

Schedule of unvested options

	For the Twelve Months Ended June 30,
	2016						2015						2014
	Shares			Weighted Average Grant Date Fair Value			Shares			Weighted Average Grant Date Fair Value			Shares		Weighted Average Grant Date Fair Value
Unvested options, beginning of period		505,553			$	1.32		120,000			$	1.49		-			-
Granted		199,586			$	1.63		438,888			$	1.30		120,000		$	1.49
Vested		(298,891	)		$	1.31		(33,335	)		$	1.49		-			-
Forfeited		(95,000	)		$	1.80		(20,000	)		$	1.49		-			-
Unvested options, end of period		311,248			$	1.39		505,553			$	1.32		120,000		$	1.49

Schedule of share based compensation arrangement by share based payment award, options outstanding and exercisable options

	As of June 30,
	2016						2015						2014
	Options Outstanding			Exercisable Options			Options Outstanding			Exercisable Options			Options Outstanding			Exercisable Options
Number			610,141			298,893			538,888			33,335			120,000			-
Weighted average exercise price		$	2.07		$	1.87		$	1.86		$	2.05		$	2.05			-
Aggregate intrinsic value		$	1,341,828		$	717,343		$	451,177		$	21,668		$	7,200			-
Weighted average contractual term		$	5.42			5.17			6.21			5.97			6.97			-
Share price as of June 30		$	4.27		$	4.27		$	2.70		$	2.70		$	2.11		$	2.11

Schedule of nonvested share activity

	Shares			Weighted-Average Grant-Date Fair Value

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
Granted		155,927			2.00
Vested		(181,134	)		1.89
Nonvested at June 30, 2015		18,604		$	1.88
Granted		131,558			3.04
Vested		(21,664	)		2.70
Nonvested at June 30, 2016		128,498		$	2.97

PREFERRED STOCK (10K) (Tables)

12 Months Ended

Jun. 30, 2016

Preferred Stock [Abstract]

Schedule of preferred stock

($ in thousands)	June 30, 2016			June 30, 2015

For Shares outstanding at $10.00 per share		$	4,451		$	4,451
Cumulative unpaid dividends			13,657			12,989
		$	18,108		$	17,440

COMMITMENTS AND CONTINGENCIES (10K) (Tables)

12 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Schedule of gain on sale of ePort equipment

($ in thousands)	Year ended June 30,
	2015
Rental equipment sold, cost	$	3,873
Rental equipment sold, accumulated depreciation upon sale		(331	)
Rental equipment sold, net book value		3,542
Proceeds from sale		4,994
Gain on sale of rental equipment	$	1,452

Schedule of amount of gain recognized in consolidated statement of operations

($ in thousands)	Year ended June 30,
	2016			2015
Beginning balance	$	1,760		$	1,142
Gain on sale of rental equipment		-			1,452
Recognition of deferred gain		(860	)		(834	)
Ending balance		900			1,760
Less current portion		860			860
Non-current portion of deferred gain	$	40		$	900

Schedule of capital leases and non-cancellable operating leases

($ in thousands)	Operating Leases from Sale Leaseback		Other Operating Leases		Total Operating Leases		Capital Leases


2017	$	2,641	$	552	$	3,193	$	299
2018		138		503		641		236
2019		-		498		498		142
2020		-		459		459		-
2021		-		468		468		-
Thereafter		-		963		963		-
Total minimum lease payments	$	2,779	$	3,443	$	6,222	$	677
Less Amount Representing interest								72
Present Value of net minimum lease payments								605
Less Current obligations under capital leases								255
Obligations under capital leases, less current portion							$	350

REVISIONS OF PREVIOUSLY REPORTED CONSOLIDATED FINANCIAL STATEMENTS (10K) (Tables)

12 Months Ended

Jun. 30, 2016

Change in Accounting Estimate [Abstract]

Schedule Of Revised Consolidated Statements of Operations

Revised Consolidated Statements of Operations

($ in thousands)	Year ended June 30, 2014
	As previously reported			Adjustment			As Revised
Cumulative preferred dividends	$	(664	)	$	(4	)	$	(668	)
Net income (loss) applicable to common shares	$	26,867		$	(4	)	$	26,863
Net earnings (loss) per common share basic	$	0.78		$	(0.01	)	$	0.77
Net earnings (loss) per common share diluted	$	0.78		$	(0.01	)	$	0.77
Basic weighted average number of common shares outstanding		34,613,497			54,272			34,667,769
Diluted weighted average number of common shares outstanding		34,613,497			396,062			35,009,559

($ in thousands)	Year ended June 30, 2015
	As previously reported				Adjustment				As Revised
Cumulative preferred dividends		$	(664	)		$	(4	)		$	(668	)
Net income (loss) applicable to common shares		$	(1,753	)		$	(4	)		$	(1,757	)
Basic and diluted weighted average number of common shares outstanding			35,663,386				55,825				35,719,211

Schedule Of Revised Consolidated Statements of Equity

Revised Consolidated Statements of Equity

($ in thousands)	Year ended June 30, 2014
Common Shares	As previously reported			Adjustment			As Revised
Stock based compensation
2010 Stock Incentive Plan		6,668			(3,334	)		3,334
2011 Stock Incentive Plan		51,667			(51,667	)		-
2012 Stock Incentive Plan		-			158,505			158,505
2013 Stock Incentive Plan		131,203			(75,393	)		55,810
Retirement of common stock		(49,311	)		(3,334	)		(52,645	)
Balance June 30, 2014		35,514,685			87,438			35,602,123

	Year ended June 30, 2015
Common Shares	As previously reported			Adjustment			As Revised
Stock based compensation
2011 Stock Incentive Plan		10,002			(10,002	)		-
2012 Stock Incentive Plan		88,991			(55,293	)		33,698
2013 Stock Incentive Plan		165,463			(5,722	)		159,741
2014 Stock Incentive Plan		-			-			-
Retirement of common stock		(31,899	)		-			(31,899	)
Balance June 30, 2015		35,747,242			16,421			35,763,663

UNAUDITED QUARTERLY DATA (10K) (Tables)

12 Months Ended

Jun. 30, 2016

Quarterly Financial Data [Abstract]

Schedule of unaudited quarterly data

	UNAUDITED
YEAR ENDED JUNE 30, 2016	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Year

Revenues	$	16,600		$	18,503		$	20,361		$	21,944		$	77,408

Gross profit	$	5,047		$	5,483		$	5,672		$	5,783		$	21,985

Operating income (loss)	$	112		$	594		$	(595	)	$	(1,578	)	$	(1,467	)

Net income (loss)	$	360		$	(874	)	$	(5,420	)	$	(872	)	$	(6,806	)

Cumulative preferred dividends	$	(334	)	$	-		$	(334	)	$	-		$	(668	)

Net income (loss) applicable to common shares	$	26		$	(874	)	$	(5,754	)	$	(872	)	$	(7,474	)

Net earnings (loss) per common share:
Basic	$	0.00		$	(0.02	)	$	(0.16	)	$	(0.02	)	$	(0.21	)

Diluted	$	0.00		$	(0.02	)	$	(0.16	)	$	(0.02	)	$	(0.21	)

Weighted average number of common shares outstanding:
Basic		35,848,395			35,909,933			36,161,626			37,325,681			36,309,047

Diluted		36,487,879			35,909,933			36,161,626			37,325,681			36,309,047

	UNAUDITED
YEAR ENDED JUNE 30, 2015	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Year

Revenues	$	12,253		$	12,821		$	15,358		$	17,645		$	58,077

Gross profit	$	3,135		$	3,733		$	5,146		$	4,809		$	16,823

Operating income (loss)	$	(667	)	$	51		$	731		$	(355	)	$	(240	)

Net income (loss)	$	(61	)	$	(261	)	$	(567	)	$	(200	)	$	(1,089	)

Cumulative preferred dividends	$	(334	)	$	-		$	(334	)	$	-		$	(668	)

Net income (loss) applicable to common shares	$	(395	)	$	(261	)	$	(901	)	$	(200	)	$	(1,757	)

Net earnings (loss) per common share
Basic	$	(0.01	)	$	(0.01	)	$	(0.03	)	$	(0.01	)	$	(0.05	)

Diluted	$	(0.01	)	$	(0.01	)	$	(0.03	)	$	(0.01	)	$	(0.05	)

Weighted average number of common shares outstanding:
Basic		35,651,732			35,716,848			35,747,979			35,761,370			35,719,211

Diluted		35,651,732			35,716,848			35,747,979			36,206,934			35,719,211

ACCOUNTING POLICIES (Q3) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
ACCOUNTING POLICIES (Q3) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Accounting Policies [Line Items]
Accounts receivable	$ (41)	$ (1,660)	$ (2,388)	$ (2,070)	$ (375)	$ (2,539)	$ (204)
Finance receivables	$ (4,232)	(366)	$ (2,113)	(735)	$ (2,040)	$ (4,114)	$ 53
As Reported
Accounting Policies [Line Items]
Reclassification of cash provided by and included in accounts receivable		(1,872)		(3,352)
Reclassification of cash provided by and included in financial receivable		(154)		547
Reclass of Unfunded Leases, beginning of period (starting BS)		2,096		1,026
Reclass of Unfunded Leases, beginning of period (starting BS)		(2,096)		(1,026)
Reclassification
Accounting Policies [Line Items]
Reclassification of cash provided by and included in accounts receivable		212		1,282
Reclassification of cash provided by and included in financial receivable		(212)		(1,282)
Reclass of Finance Receivables, end of period		(2,308)		(2,308)
Reclass of Finance Receivables, end of period		$ 2,308		$ 2,308

ACCOUNTING POLICIES (Q3) (Textuals) (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Mar. 31, 2017	Jun. 30, 2016	Jun. 30, 2015	Mar. 31, 2016
Accounting Policies [Abstract]
Depreciation method for property and plant	straight-line basis
Term of notes receivable or quick start leases	60 months		60 months
Interest or penalties related to uncertain tax positions	$ 0			$ 0
Amortization of capitalized software development	3 years	3 years
Description rental JumpStart program for ePort devices	The Company offers extended payment terms to certain customers for equipment sales under its Quick Start Program	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.
Term of non cancelable lease with agreement	5 years	5 years

FINANCE RECEIVABLES (Q3) - Information regarding finance receivables (Details) $ in Thousands	Mar. 31, 2017 USD ($)	Jun. 30, 2016 USD ($) Item	Jun. 30, 2015 USD ($)
Receivables [Abstract]
Total finance receivables	$ 9,605	$ 7,306	$ 4,639
Less current portion	2,057	3,588	941
Non-current portion of finance receivables	7,548	3,718	$ 3,698
Finance receivables, less allowance for credit losses	$ 25	$ 0
Finance receivables, unrealized loss position \| Item		0

FINANCE RECEIVABLES (Q3) - Credit risk profile based on payment activity (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Jun. 30, 2016	Jun. 30, 2015
Financing Receivable, Recorded Investment [Line Items]
Total finance receivables	$ 9,605	$ 7,306	$ 4,639
Performing
Financing Receivable, Recorded Investment [Line Items]
Total finance receivables	9,527	7,174	4,619
Nonperforming
Financing Receivable, Recorded Investment [Line Items]
Total finance receivables	$ 78	$ 132	$ 20

FINANCE RECEIVABLES (Q3) - Age analysis of past due finance receivables (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Jun. 30, 2016	Jun. 30, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total finance receivables	$ 9,605	$ 7,306	$ 4,639
QuickStart Leases
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	53	132	21
Current	9,552	7,174	4,618
Total finance receivables	9,605	7,306	4,639
QuickStart Leases \| 31 - 60 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	31	98
QuickStart Leases \| 61 - 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1	31	16
QuickStart Leases \| Greater than 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 21	$ 3	$ 5

GOODWILL AND INTANGIBLE ASSETS (Q3) - Summary of final purchase price allocation (Details) - USD ($) $ in Thousands	Jan. 15, 2016	Mar. 31, 2017	Dec. 31, 2016	Jun. 30, 2016	Jan. 14, 2016	Jun. 30, 2015	Jun. 30, 2014
Financial Liabilities
Goodwill		$ 11,492	$ 11,703	$ 11,703		$ 7,663	$ 7,663
VendScreen, Inc
Consideration:
Fair value of total consideration paid in cash	$ 5,625
Acquisition related costs:	842
Financial Assets:
Accounts Receivable	3
Finance Receivables	839
Other Current Assets	20
Deferred Income Taxes	18
Current Assets	880
Property, Plant & Equipment	81
Fair Value of Intangible Assets	885
Financial Liabilities
Accrued Liabilities	(50)
Total identifiable net assets	1,796
Goodwill	3,829				$ 4,000
Total Fair Value	5,625
Developed Technology \| VendScreen, Inc
Financial Assets:
Fair Value of Intangible Assets	639
Customer relationships \| VendScreen, Inc
Financial Assets:
Fair Value of Intangible Assets	149
Brand \| VendScreen, Inc
Financial Assets:
Fair Value of Intangible Assets	95
Non-compete agreements \| VendScreen, Inc
Financial Assets:
Fair Value of Intangible Assets	$ 2

GOODWILL AND INTANGIBLE ASSETS (Q3) - Summary of intangible assets (Details) - USD ($) $ in Thousands		1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Jan. 15, 2016	Dec. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Goodwill [Roll Forward]
Goodwill, Beginning Balance			$ 11,703		$ 11,703	$ 7,663	$ 7,663	$ 7,663
Goodwill, Additions / Adjustments					(211)
Goodwill, Ending Balance		$ 11,703	11,492		11,492		11,703	7,663	$ 7,663
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Total Intangible Assets					798	432	432	432
Amortization			(45)	$ (44)	(132)	$ (44)	(87)		(22)
Total Intangible Assets			666		666		798	$ 432	$ 432
Non-compete agreements
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Total Intangible Assets					1
Amortization					$ (1)		1
Total Intangible Assets							$ 1
Amortization Period					2 years		2 years
Brand
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Total Intangible Assets					$ 79
Amortization					(24)		$ 16
Total Intangible Assets			55		$ 55		$ 79
Amortization Period					3 years		3 years
Developed Technology
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Total Intangible Assets					$ 576
Amortization					(96)		$ 63
Total Intangible Assets			480		$ 480		$ 576
Amortization Period					5 years		5 years
Customer relationships
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Total Intangible Assets					$ 142
Amortization					(11)		$ 7
Total Intangible Assets			$ 131		$ 131		$ 142
Amortization Period					10 years		10 years
VendScreen, Inc
Goodwill [Roll Forward]
Goodwill, Beginning Balance	$ 4,000
Goodwill, Additions / Adjustments		$ 211
Goodwill, Ending Balance	3,829
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Assets and assumed specified liabilities, cash payment	$ 5,625

GOODWILL AND INTANGIBLE ASSETS (Q3) (Textuals) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense of acquired intangible assets	$ 45	$ 44	$ 132	$ 44	$ 87		$ 22

LINE OF CREDIT (Q3) (Textuals) (Details) - USD ($) $ in Thousands		1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2016	Mar. 29, 2016	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Line of Credit Facility [Line Items]
Deferred financing costs			$ 90		$ 90
Line of credit, net			7,021		7,021		$ 7,119	$ 4,000
Line of credit facility amount available under line of credit			5,000		5,000
Interest expense			188	$ 180	601	$ 403	600	$ 302	$ 257
Prime Rate [Member]
Line of Credit Facility [Line Items]
Interest rate	3.75%
Heritage Bank of Commerce
Line of Credit Facility [Line Items]
Line of credit, gross			7,000		7,000		7,100
Debt issuance costs			90		90
Line of credit, net			7,000		7,000
Revolving line of credit facility \| Heritage Bank of Commerce \| Loan and Security Agreement
Line of Credit Facility [Line Items]
Maximum limit of amount under line of credit		$ 12,000					$ 12,000
Line of credit facility, basis of measurement							Federal Reserves' Prime
Percentage of interest rate above prime rate		2.25%					2.25%
Line of credit, net		$ 12,000					$ 7,200
Line of credit facility amount available under line of credit							$ 4,800
Interest expense			$ 100		$ 300

LONG-TERM DEBT (Q3) (Textuals) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Debt Instrument [Line Items]
Capital lease due in 12 monthly installment	$ 1	$ 142
Capital lease due in 8 quarterly installment	21	236
Capital Lease Obligations
Debt Instrument [Line Items]
Capital lease obligations	$ 380	$ 444	$ 108	$ 325

FAIR VALUE OF FINANCIAL INSTRUMENTS (Q3) - Changes in fair value of the Company level 3 financial instruments (unaudited) (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Jun. 30, 2016	Jun. 30, 2015
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ (1,865)	$ (3,739)	$ (978)	$ (978)	$ (585)
Increase due to change in fair value of warrant liabilities	(4,805)	(1,490)	(5,692)	(5,674)	(393)
Reclass of fair value of warranty liability to common stock upon exercise of warrants	706	$ 5,229	706
Ending balance	$ (5,964)		$ (5,964)	$ (3,739)	$ (978)

FAIR VALUE OF FINANCIAL INSTRUMENTS (Q3) (Textuals) (Details) - USD ($) $ in Thousands, shares in Millions	9 Months Ended	12 Months Ended
	Mar. 31, 2017	Jun. 30, 2016	Mar. 31, 2016	Jun. 30, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Number of common stock called by warrants		2.2		3.9
Fair value transfers assets, Level 1 to Level 2	$ 0		$ 0
Fair value transfers assets, Level 2 to Level 1	0
Fair Value transfers liabilities, Level 1 to Level 2	0		0
Fair Value transfers liabilities, Level 2 to Level 1	0		$ 0
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
The held of financial instruments	0	$ 0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
The held of financial instruments	$ 0	$ 0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Valuation method used to determine fair value	proprietary valuation models	proprietary valuation models
Number of common stock called by warrants		2.2		3.9

INCOME TAXES (Q3) (Textuals) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 209	$ (93)	$ 94	$ 88	$ (615)	$ 289	$ (27,255)
Estimated annual effective income tax rate			31.00%		33.00%
Maximum income tax (benefits) considered before additional income before taxes			$ 23

EQUITY (Q3) (Details) - Warrants - shares	3 Months Ended		9 Months Ended		12 Months Ended
EQUITY (Q3) (Details) - Warrants - shares	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Class Of Warrant Or Right [Roll Forward]
Beginning balance	23,978	4,298,000	2,445,653	4,309,000	4,309,000	4,309,000	7,361,708
Issued		23,978		23,978	23,978
Exercised	0	(634,100)	(2,401,408)	(645,100)	(1,887,325)		(2,090,226)
Cancelled			(20,267)
Ending balance	23,978	3,687,878	23,978	3,687,878	2,445,653	4,309,000	4,309,000

EQUITY (Q3) (Details 1) - Stock options - $ / shares	1 Months Ended	3 Months Ended	9 Months Ended		12 Months Ended
EQUITY (Q3) (Details 1) - Stock options - $ / shares	Aug. 31, 2016	Mar. 31, 2017	Mar. 31, 2017	Mar. 31, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility							79.00%
Expected life					4 years 6 months	7 years	7 years
Risk-free interest rate							2.22%
Number of options granted	20,080	105,000	125,080	194,586	199,586	438,888	120,000
Weighted average exercise price		$ 4.17	$ 4.17	$ 3.21
Weighted average grant date fair value		$ 1.68	$ 1.68	$ 1.64	$ 4.27	$ 2.70	$ 2.11
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility			49.00%	59.00%	59.00%	78.00%
Expected life			3 years	4 years
Risk-free interest rate			1.06%	1.34%	1.46%	1.59%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility			50.00%	66.00%	66.00%	79.00%
Expected life			4 years	4 years 6 months
Risk-free interest rate			1.90%	1.49%	1.49%	2.04%

EQUITY (Q3) (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
EQUITY (Q3) (Details 2) - USD ($) $ in Thousands	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation	$ 107	$ 34	$ 315	$ 192
FY17 LTI Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation	81		236
FY16 LTI Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation	23	24	73	134
FY15 LTI Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation	$ 3	8	$ 6	48
FY14 LTI Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation		$ 2		$ 10

EQUITY (Q3) (Detail Textuals) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Jun. 30, 2016	Jun. 30, 2014	Jun. 30, 2015
Class Of Warrant Or Right [Line Items]
Exercise price per share				$ 2.6058		$ 2.6058
Proceed from exercise of common stock warrants	$ 1,652	$ 6,193	$ 1,681	$ 4,918	$ 2,362
Warrants
Class Of Warrant Or Right [Line Items]
Number of warrants issued subject to cashless exercise		24,733
Number of warrants exercised		2,376,675
Exercise price per share		$ 2.6058
Cashless exercise price per share		$ 2.10
Proceed from exercise of common stock warrants		$ 6,200

EQUITY (Q3) (Detail Textual 1) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended		12 Months Ended
	Aug. 31, 2016 $ / shares shares	Mar. 31, 2017 USD ($) Employee $ / shares shares	Mar. 31, 2016 USD ($)	Mar. 31, 2017 USD ($) $ / shares shares	Mar. 31, 2016 USD ($) shares	Jun. 30, 2016 USD ($) $ / shares shares	Jun. 30, 2015 USD ($) $ / shares shares	Jun. 30, 2014 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation \| $		$ 107	$ 34	$ 315	$ 192
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option valuation method				Black-Scholes valuation model
Granted	20,080	105,000		125,080	194,586	199,586	438,888	120,000
Exercise price of awarded options \| $ / shares	$ 4.98					$ 1.63	$ 1.30	$ 1.49
Description of stock options vesting rights				The options vest on August 31, 2017, and expire if not exercised prior to August 31, 2023
Stock based compensation \| $		$ 61	$ 67	$ 155	$ 274	$ 338	$ 370
Number of employees to whom option are granted \| Employee		3
Number of shares expires on March 31, 2024		95,000
Number of shares expires on February 6, 2024		10,000
Stock options \| Exercise price of 4.00
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares exercisable		75,000		75,000
Exercise price per share \| $ / shares		$ 4.00		$ 4.00
Stock options \| Exercise price of 4.05
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares exercisable		30,000		30,000
Exercise price per share \| $ / shares		$ 4.05		$ 4.05

EQUITY (Q3) (Detail Textual 2) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended		12 Months Ended
EQUITY (Q3) (Detail Textual 2) - USD ($) $ in Thousands	Jul. 01, 2016	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted						131,558	155,927	10,000
Number of shares vested						21,664	181,134	55,001
Number of shares forfeited								3,334
Common Stock \| Non Employee Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted	56,784
Share granted, amount	$ 40
Total expense recognized		$ 37		$ 110
Common Stock \| Non Employee Director \| Long Term Stock Incentive Plan (LTT)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted				78,711
Common Stock \| Non Employee Director \| 07/01/2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares vested	18,960
Common Stock \| Non Employee Director \| 07/01/2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares vested	18,960
Common Stock \| Non Employee Director \| 07/01/2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares vested	18,954
Common Stock \| Chief Executive Officer And Chief Services Officer [Member] \| Long Term Stock Incentive Plan (LTT)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted				13,771
Common Stock \| Chief Executive Officer ("CEO") \| Long Term Stock Incentive Plan (LTT)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares forfeited				6,533
Common Stock \| Chief Executive Officer ("CEO") \| Payroll Obligation
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares forfeited				31,000
Warrants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercised of outstanding warrants		0	634,100	2,401,408	645,100	1,887,325		2,090,226

EQUITY (Q3) (Detail Textual 3) - Long Term Stock Incentive Plan (LTT)	9 Months Ended
	Mar. 31, 2017 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage total number of connections	50.00%
Percentage adjusted EBITDA earned	50.00%
Chief Executive Officer ("CEO")
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of shares awarded on target achievement	150.00%
Officers compensation	$ 675,000
Chief Services Officer ("CSO")
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of shares awarded on target achievement	100.00%
Officers compensation	$ 250,000
Chief Financial Officer ("CFO")
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of shares awarded on target achievement	75.00%
Officers compensation	$ 103,125
Maximum \| Chief Executive Officer ("CEO")
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of shares awarded on target achievement	225.00%
Officers compensation	$ 1,012,500
Maximum \| Chief Services Officer ("CSO")
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of shares awarded on target achievement	150.00%
Officers compensation	$ 375,000
Maximum \| Chief Financial Officer ("CFO")
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of shares awarded on target achievement	112.50%
Officers compensation	$ 154,688

COMMITMENTS AND CONTINGENCIES (Q3) (Textuals) (Details) $ in Thousands	1 Months Ended	9 Months Ended
	Apr. 30, 2016 USD ($) ft²	Mar. 31, 2017 USD ($) ft²
Commitments and Contingencies Disclosure [Abstract]
Area of new premises (in square feet) \| ft²	17,689	5,362
Rent expense under operating leases	$ 32	$ 11
Straight-lined rent expense	$ 38	$ 11

ACCOUNTING POLICIES (10K) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Jun. 30, 2016	Jun. 30, 2015
Accounts Receivable, net of allowance for doubtful accounts:
Accounts Receivable, net of allowance for doubtful accounts	$ 6,734	$ 4,899	$ 5,971
Allowance for Doubtful Accounts:
Reclassification of the allowance for doubtful accounts in accounts payable	(2,851)	(2,814)	(1,309)
Accounts Payable:
Accounts payable	$ 11,529	$ 12,354	10,542
As Reported
Accounts Receivable, net of allowance for doubtful accounts:
Accounts Receivable, net of allowance for doubtful accounts			4,672
Allowance for Doubtful Accounts:
Reclassification of the allowance for doubtful accounts in accounts payable			(494)
Accounts Payable:
Accounts payable			9,243
Reclassification
Accounts Receivable, net of allowance for doubtful accounts:
Reclassification of balances included in accounts payable to accounts receivable			2,114
Reclassification of the allowance for doubtful accounts in accounts payable			(815)
Accounts Receivable, net of allowance for doubtful accounts			1,299
Allowance for Doubtful Accounts:
Reclassification of the allowance for doubtful accounts in accounts payable			(815)
Accounts Payable:
Reclassification of balances included in accounts payable to accounts receivable			2,114
Reclassification of the allowance for doubtful accounts in accounts payable			(815)
Accounts payable			$ 1,299

ACCOUNTING POLICIES (10K) (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Accounts Receivable
Reclassification of cash provided by and included in accounts payable to accounts receivable	$ (2,539)	$ (204)
Accounts Payable:
Reclassification of cash used in and included in accounts payable to accounts receivable	941	460
As Reported
Accounts Receivable
Reclassification of cash provided by and included in accounts payable to accounts receivable	(2,517)	(157)
Accounts Payable:
Reclassification of cash used in and included in accounts payable to accounts receivable	919	413
Reclassification
Accounts Receivable
Reclassification of cash provided by and included in accounts payable to accounts receivable	(22)	(47)
Accounts Payable:
Reclassification of cash used in and included in accounts payable to accounts receivable	$ 22	$ 47

ACCOUNTING POLICIES (10K) (Detail Textuals) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Mar. 31, 2017	Jun. 30, 2016	Jun. 30, 2015
Accounting Policies [Abstract]
Term of notes receivable or quick start leases	60 months		60 months
Goodwill and Intangible Asset Impairment		$ 432
Description rental JumpStart program for ePort devices	The Company offers extended payment terms to certain customers for equipment sales under its Quick Start Program	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.
Term of non cancelable lease with agreement	5 years	5 years

ACCOUNTING POLICIES (10K) (Detail Textuals 1) - Customer one - Customer	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
License and transaction processing revenues
Concentration Risk [Line Items]
Concentration percentage	16.00%	21.00%	26.00%
Number of customers	1	1	1
Equipment sales revenue
Concentration Risk [Line Items]
Concentration percentage	28.00%	17.00%
Number of customers	1	1
Trade accounts and finance receivables
Concentration Risk [Line Items]
Concentration percentage	18.00%	35.00%	22.00%
Number of customers	1	1	1

ACCOUNTING POLICIES (10K) (Detail Textuals 2) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Accounting Policies [Abstract]
Term of products warranty					One to three years
Research and development expenses					$ 1,400	$ 1,500	$ 1,000
Advertising expense					$ 300	$ 200	$ 200
Net income per common share-basic and diluted (in dollars per share)	$ 0.00	$ (0.16)	$ (0.07)	$ (0.18)	$ (0.21)	$ (0.05)	$ 0.77	$ 0.78
Capitaisation of software development					$ 137
Amortisation of capitalized software development			3 years		3 years

ACQUISITION (10K) (Details) - USD ($) $ in Thousands		12 Months Ended
ACQUISITION (10K) (Details) - USD ($) $ in Thousands	Jan. 15, 2016	Jun. 30, 2016	Mar. 31, 2017	Dec. 31, 2016	Jun. 30, 2015	Jun. 30, 2014
Consideration:
Fair value of total consideration paid in cash		$ 5,625
Financial liabilities
Goodwill		$ 11,703	$ 11,492	$ 11,703	$ 7,663	$ 7,663
Vendscreen, Inc
Consideration:
Fair value of total consideration paid in cash	$ 5,625
Acquisition / non-recurring acquisition expenses:	842
Financial Assets:
Accounts receivable	3
Finance receivables	628
Other current assets	20
Deferred income taxes	18
Current Assets	669
Property, plant & equipment	81
Identifiable intangible assets:
Fair value of intangible assets	885
Financial liabilities
Accrued liabilities	(50)
Total identifiable net assets	1,585
Goodwill	4,040
Total Fair Value	5,625
Vendscreen, Inc \| Developed technology
Identifiable intangible assets:
Fair value of intangible assets	639
Vendscreen, Inc \| Customer relationships
Identifiable intangible assets:
Fair value of intangible assets	149
Vendscreen, Inc \| Brand
Identifiable intangible assets:
Fair value of intangible assets	95
Vendscreen, Inc \| Non-compete agreements
Identifiable intangible assets:
Fair value of intangible assets	$ 2

ACQUISITION (10K) (Detail Textuals) $ in Thousands		12 Months Ended
ACQUISITION (10K) (Detail Textuals) $ in Thousands	Jan. 15, 2016 USD ($) Customer Connection	Jun. 30, 2016 USD ($)
Business Acquisition [Line Items]
Cash paid for assets acquired from VendScreen		$ 5,625
Vendscreen, Inc
Business Acquisition [Line Items]
Cash paid for assets acquired from VendScreen	$ 5,625
Purchase price funding using cash	2,625
Purchase price from term loan	$ 3,000
Number of customers \| Customer	150
Number of connections \| Connection	6,000
Percentage of new customers of USAT	50.00%
Business combination net revenues contributed		1,200
Fair value of intangible assets	$ 885
Non recurring expenses incurred in connection with acquisition		$ 842
Vendscreen, Inc \| Developed technology
Business Acquisition [Line Items]
Amortization period	5 years
Fair value of intangible assets	$ 639
Vendscreen, Inc \| Customer relationships
Business Acquisition [Line Items]
Amortization period	10 years
Fair value of intangible assets	$ 149
Vendscreen, Inc \| Non-compete agreements
Business Acquisition [Line Items]
Amortization period	2 years
Fair value of intangible assets	$ 2
Vendscreen, Inc \| Brand
Business Acquisition [Line Items]
Amortization period	3 years
Fair value of intangible assets	$ 95

EARNINGS PER SHARE CALCULATION (10K) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended									9 Months Ended		12 Months Ended
	Mar. 31, 2017	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Mar. 31, 2017	Mar. 31, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013
Numerator for basic and diluted earnings per share
Net income (loss)	$ 136	$ (872)	$ (5,420)	$ (874)	$ 360	$ (200)	$ (567)	$ (261)	$ (61)	$ (2,095)	$ (5,934)	$ (6,806)	$ (1,089)	$ 27,531
Preferred dividends	(334)		(334)		(334)		(334)		(334)	(668)	(668)	(668)	(668)	(668)
Net income (loss) available to common shares	$ (198)	$ (872)	$ (5,754)	$ (874)	$ 26	$ (200)	$ (901)	$ (261)	$ (395)	$ (2,763)	$ (6,602)	$ (7,474)	$ (1,757)	$ 26,863
Denominator for basic earnings per share - Weighted average shares outstanding		37,325,681	36,161,626	35,909,933	35,848,395	35,761,370	35,747,979	35,716,848	35,651,732			36,309,047	35,719,211	34,667,769
Effect of dilutive potential common shares														341,790
Denominator for diluted earnings per share - Adjusted weighted average shares outstanding		37,325,681	36,161,626	35,909,933	36,487,879	36,206,934	35,747,979	35,716,848	35,651,732			36,309,047	35,719,211	35,009,559
Basic earnings (loss) per share		$ (0.02)	$ (0.16)	$ (0.02)	$ 0.00	$ (0.01)	$ (0.03)	$ (0.01)	$ (0.01)			$ (0.21)	$ (0.05)	$ 0.77	$ 0.78
Diluted earnings (loss) per share		$ (0.02)	$ (0.16)	$ (0.02)	$ 0.00	$ (0.01)	$ (0.03)	$ (0.01)	$ (0.01)			$ (0.21)	$ (0.05)	$ 0.77

EARNINGS PER SHARE CALCULATION (10K) (Detail Textuals) - shares	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Earnings Per Share [Abstract]
Antidilutive shares excluded from the calculation of diluted earnings per shares	1,168,689	252,827	98,497

FINANCE RECEIVABLES (10K) - Information regarding finance receivables (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Jun. 30, 2016	Jun. 30, 2015
Receivables [Abstract]
Total finance receivables	$ 9,605	$ 7,306	$ 4,639
Less current portion	2,057	3,588	941
Non-current portion of finance receivables	$ 7,548	$ 3,718	$ 3,698

FINANCE RECEIVABLES (10K) - Credit risk profile based on payment activity (Details 1) - USD ($) $ in Thousands	Mar. 31, 2017	Jun. 30, 2016	Jun. 30, 2015
Financing Receivable, Recorded Investment [Line Items]
Total finance receivables	$ 9,605	$ 7,306	$ 4,639
Performing
Financing Receivable, Recorded Investment [Line Items]
Total finance receivables	9,527	7,174	4,619
Nonperforming
Financing Receivable, Recorded Investment [Line Items]
Total finance receivables	$ 78	$ 132	$ 20

FINANCE RECEIVABLES (10K) - Age analysis of past due finance receivables (Details 2) - USD ($) $ in Thousands	Mar. 31, 2017	Jun. 30, 2016	Jun. 30, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total finance receivables	$ 9,605	$ 7,306	$ 4,639
QuickStart Leases
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	53	132	21
Current	9,552	7,174	4,618
Total finance receivables	9,605	7,306	4,639
QuickStart Leases \| 31- 60 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	31	98
QuickStart Leases \| 61- 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1	31	16
QuickStart Leases \| Greater than 90 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 21	$ 3	$ 5

FINANCE RECEIVABLES (10K) (Details 3) $ in Thousands	Jun. 30, 2016 USD ($)
Accounting Policies [Abstract]
2017	$ 3,588
2018	1,246
2019	1,246
2020	944
2021 and beyond	282
Total Financial Receivable	$ 7,306

PROPERTY AND EQUIPMENT, net (10K) - Summary of property and equipment at cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Mar. 31, 2017
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 33,603	$ 32,437
Less accumulated depreciation	(23,838)	(19,568)
Property and equipment, net	$ 9,765	$ 12,869	$ 9,173
Computer equipment purchased software
Property, Plant and Equipment [Line Items]
Useful lives	3-7 years	3-7 years
Property, plant and equipment, gross	$ 5,506	$ 4,670
Less accumulated depreciation	(4,374)	(4,017)
Property and equipment, net	$ 1,132	$ 653
Property and equipment used for rental program
Property, Plant and Equipment [Line Items]
Useful lives	5 years	5 years
Property, plant and equipment, gross	$ 26,648	$ 26,469
Less accumulated depreciation	(18,246)	(14,476)
Property and equipment, net	$ 8,402	$ 11,993
Furniture and equipment
Property, Plant and Equipment [Line Items]
Useful lives	3-7 years	3-7 years
Property, plant and equipment, gross	$ 874	$ 723
Less accumulated depreciation	(654)	(572)
Property and equipment, net	$ 220	$ 151
Leasehold improvements
Property, Plant and Equipment [Line Items]
Useful lives	Lesser of life or lease term	Lesser of life or lease term
Property, plant and equipment, gross	$ 575	$ 575
Less accumulated depreciation	(564)	(503)
Property and equipment, net	$ 11	$ 72

PROPERTY AND EQUIPMENT, net (10K) (Detail Textuals) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Property, Plant and Equipment [Abstract]
Assets under capital leases	$ 2,600	$ 2,100
Capital lease amortization included in depreciation expense	$ 271	$ 349	$ 305

PROPERTY AND EQUIPMENT, net - Summary of property and equipment at cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Mar. 31, 2017
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 33,603	$ 32,437
Less accumulated depreciation	(23,838)	(19,568)
Property and equipment, net	$ 9,765	$ 12,869	$ 9,173
Computer equipment purchased software
Property, Plant and Equipment [Line Items]
Useful lives	3-7 years	3-7 years
Property, plant and equipment, gross	$ 5,506	$ 4,670
Less accumulated depreciation	(4,374)	(4,017)
Property and equipment, net	$ 1,132	$ 653
Property and equipment used for rental program
Property, Plant and Equipment [Line Items]
Useful lives	5 years	5 years
Property, plant and equipment, gross	$ 26,648	$ 26,469
Less accumulated depreciation	(18,246)	(14,476)
Property and equipment, net	$ 8,402	$ 11,993
Furniture and equipment
Property, Plant and Equipment [Line Items]
Useful lives	3-7 years	3-7 years
Property, plant and equipment, gross	$ 874	$ 723
Less accumulated depreciation	(654)	(572)
Property and equipment, net	$ 220	$ 151
Leasehold improvements
Property, Plant and Equipment [Line Items]
Useful lives	Lesser of life or lease term	Lesser of life or lease term
Property, plant and equipment, gross	$ 575	$ 575
Less accumulated depreciation	(564)	(503)
Property and equipment, net	$ 11	$ 72

PROPERTY AND EQUIPMENT, net (Detail Textuals) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Property, Plant and Equipment [Abstract]
Assets under capital leases	$ 2,600	$ 2,100
Capital lease amortization included in depreciation expense	$ 271	$ 349	$ 305

GOODWILL AND INTANGIBLE ASSETS (10K) - Summary of intangible assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Goodwill [Roll Forward]
Goodwill, Beginning Balance	$ 11,703		$ 11,703	$ 7,663	$ 7,663	$ 7,663
Goodwill, Additions / Adjustments					4,040
Goodwill, Amortization
Goodwill, Ending Balance	11,492		11,492		$ 11,703	$ 7,663	$ 7,663
Goodwill, Amortization Period					Indefinite	Indefinite
Finite-lived Intangible Assets [Roll Forward]
Beginning Balance			798
Additions / Adjustments					$ 453
Amortization	45	$ 44	132	44	87		22
Ending Balance					798
Intangible Assets, Net (Including Goodwill) [Abstract]
Intangible Assets, Beginning Balance			12,501	8,095	8,095	8,095
Intangible Assets, Additions					4,493
Intangible Assets, Amortization					(87)
Intangible Assets, Ending Balance					12,501	8,095	8,095
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Total Intangible Assets			798	432	432	432
Additions / Adjustments					453
Amortization	(45)	$ (44)	(132)	(44)	(87)		(22)
Total Intangible Assets	666		666		798	432	432
Trademarks
Indefinite-lived Intangible Assets [Roll Forward]
Indefinite Intangible Assets, Beginning Balance				432	432	432
Additions / Adjustments					(432)
Amortization
Indefinite Intangible Assets, Ending Balance						$ 432	$ 432
Amortization Period					Indefinite	Indefinite
Non-compete agreements
Finite-lived Intangible Assets [Roll Forward]
Beginning Balance			1
Additions / Adjustments					2
Amortization			$ 1		(1)
Ending Balance					$ 1
Amortization Period			2 years		2 years
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Total Intangible Assets			$ 1
Additions / Adjustments					$ 2
Amortization			$ (1)		1
Total Intangible Assets					$ 1
Amortization Period			2 years		2 years
Brand
Finite-lived Intangible Assets [Roll Forward]
Beginning Balance			$ 79
Additions / Adjustments					95
Amortization			$ 24		(16)
Ending Balance					$ 79
Amortization Period			3 years		3 years
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Total Intangible Assets			$ 79
Additions / Adjustments					$ 95
Amortization			(24)		16
Total Intangible Assets	55		$ 55		$ 79
Amortization Period			3 years		3 years
Developed Technology
Finite-lived Intangible Assets [Roll Forward]
Beginning Balance			$ 576
Additions / Adjustments					639
Amortization			$ 96		(63)
Ending Balance					$ 576
Amortization Period			5 years		5 years
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Total Intangible Assets			$ 576
Additions / Adjustments					$ 639
Amortization			(96)		63
Total Intangible Assets	480		$ 480		$ 576
Amortization Period			5 years		5 years
Customer relationships
Finite-lived Intangible Assets [Roll Forward]
Beginning Balance			$ 142
Additions / Adjustments					149
Amortization			$ 11		(7)
Ending Balance					$ 142
Amortization Period			10 years		10 years
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Total Intangible Assets			$ 142
Additions / Adjustments					$ 149
Amortization			(11)		7
Total Intangible Assets	$ 131		$ 131		$ 142
Amortization Period			10 years		10 years

GOODWILL AND INTANGIBLE ASSETS (10K) - Summary of amortizable intangible asset (Details 1) - USD ($) $ in Thousands	Jun. 30, 2016	Jun. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Amortizable intangible assets, Cost	$ 885
Amortizable intangible assets, Accumulated amortization	(87)
Amortizable intangible assets, Net book value	798
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Amortizable intangible assets, Cost	2
Amortizable intangible assets, Accumulated amortization	(1)
Amortizable intangible assets, Net book value	1
Brand
Finite-Lived Intangible Assets [Line Items]
Amortizable intangible assets, Cost	95
Amortizable intangible assets, Accumulated amortization	(16)
Amortizable intangible assets, Net book value	79
Developed Technology
Finite-Lived Intangible Assets [Line Items]
Amortizable intangible assets, Cost	639
Amortizable intangible assets, Accumulated amortization	(63)
Amortizable intangible assets, Net book value	576
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Amortizable intangible assets, Cost	149
Amortizable intangible assets, Accumulated amortization	(7)
Amortizable intangible assets, Net book value	$ 142

GOODWILL AND INTANGIBLE ASSETS (10K) - Summary of estimated annual amortization expense for amortizable intangible asset (Details 2) $ in Thousands	Jun. 30, 2016 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2017	$ 175
2018	175
2019	159
2020	143
2021	79
Thereafter	67
Amortizable intangible assets, Net book value	$ 798

GOODWILL AND INTANGIBLE ASSETS (10K) - (Detail Textuals) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense of acquired intangible assets	$ 45	$ 44	$ 132	$ 44	$ 87		$ 22
Impairment write-down of trademark					$ 432

ACCRUED EXPENSES (10K) - Information regarding accrued expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Jun. 30, 2016	Jun. 30, 2015
Accrued Liabilities [Abstract]
Accrued compensation and related sales commissions		$ 1,268	$ 673
Accrued professional fees		809	301
Accrued taxes and filing fees		795	505
Advanced customer billings		236	390
Accrued rent		2	75
Accrued other		363	213
Accrued expenses, total		3,473	2,157
Less current portion	$ (3,111)	(3,458)	(2,108)
Accrued expenses, less current portion	$ 52	$ 15	$ 49

LINE OF CREDIT (10K) - Summary of line of credit (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Mar. 31, 2017
Line Of Credit Facility [Abstract]
Principal balance at period-end	$ 7,217	$ 4,000
Unamortized discount	(98)
Line of credit, net	7,119	4,000	$ 7,021
Maximum amount outstanding at any month end	7,217	5,000
Average balance outstanding during the period	$ 4,959	$ 4,100
Weighted-average interest rate:
As of the period-end	5.80%	5.30%
Paid during the period	5.50%	5.30%

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.