View Filing Data

37,783,444

Increase (Decrease) in Stockholders' Equity [Roll Forward]

$ 19,328

$ 233,394

$ (214,066)

Ending balance at Sep. 30, 2016

(3,370)

27,560

37,783,444

Increase (Decrease) in Stockholders' Equity [Roll Forward]

19,328

$ 233,394

(214,066)

Ending balance at Dec. 31, 2016

(3,602)

27,562

37,783,444

Increase (Decrease) in Stockholders' Equity [Roll Forward]

19,328

$ 233,394

(214,066)

Ending balance at Mar. 31, 2017

(4,527)

26,870

37,783,444

Increase (Decrease) in Stockholders' Equity [Roll Forward]

19,328

$ 233,394

(214,066)

Fair value of exercised warrant liability

5,229

$ 5,229

Exercise of warrants (in shares)

2,401,408

Exercise of warrants

6,193

$ 6,193

Stock based compensation (in shares)

153,326

Stock based compensation

1,214

$ 1,214

Retirement of common stock (in shares)

(6,533)

Retirement of common stock

(31)

$ (31)

Ending balance (in shares) at Jun. 30, 2017

(7,465)

40,331,645

Ending balance at Jun. 30, 2017

24,468

$ 245,999

(221,531)

37,783,444

Increase (Decrease) in Stockholders' Equity [Roll Forward]

19,328

$ 233,394

(214,066)

Ending balance (in shares) at Jun. 30, 2019

(50,800)

60,008,481

Ending balance at Jun. 30, 2019

112,453

$ 376,853

(264,400)

Beginning balance at Sep. 30, 2016

27,560

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Ending balance at Dec. 31, 2016

(232)

27,562

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Ending balance at Mar. 31, 2017

(925)

26,870

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Ending balance (in shares) at Jun. 30, 2017

(2,938)

40,331,645

Ending balance at Jun. 30, 2017

24,468

$ 245,999

(221,531)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Ending balance at Sep. 30, 2017

(2,171)

62,661

Beginning balance (in shares) at Jun. 30, 2017

40,331,645

Beginning balance at Jun. 30, 2017

24,468

$ 245,999

(221,531)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Ending balance at Dec. 31, 2017

(6,365)

82,321

Beginning balance (in shares) at Jun. 30, 2017

40,331,645

Beginning balance at Jun. 30, 2017

24,468

$ 245,999

(221,531)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Ending balance at Mar. 31, 2018

(9,588)

79,470

Beginning balance (in shares) at Jun. 30, 2017

40,331,645

Beginning balance at Jun. 30, 2017

24,468

$ 245,999

(221,531)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Issuance of common stock in relation to public offering (in shares)

^[1]

15,913,781

Issuance of common stock in relation to public offering, net of offering costs incurred

^[1]

104,796

$ 104,796

Issuance of common stock as merger consideration (as restated) (in shares)

^[2]

3,423,367

Issuance of common stock as merger consideration (as restated)

^[2]

23,279

$ 23,279

Stock based compensation (in shares)

374,823

Stock based compensation

1,935

$ 1,935

Excess tax benefit from stock plans

^[3]

Retirement of common stock (in shares)

^[4]

(44,805)

Retirement of common stock

^[4]

(573)

$ (573)

Ending balance (in shares) at Jun. 30, 2018

(11,284)

59,998,811

Ending balance at Jun. 30, 2018

142,688

$ 375,436

(232,748)

Beginning balance at Sep. 30, 2017

62,661

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Ending balance at Dec. 31, 2017

(4,194)

82,321

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Ending balance at Mar. 31, 2018

(3,223)

79,470

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Ending balance (in shares) at Jun. 30, 2018

(1,696)

59,998,811

Ending balance at Jun. 30, 2018

142,688

$ 375,436

(232,748)

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Stock based compensation (in shares)

20,627

Stock based compensation

1,618

$ 1,618

Repurchase of stock option awards

120

$ 120

Retirement of common stock (in shares)

(10,957)

Retirement of common stock

(81)

$ (81)

Ending balance (in shares) at Jun. 30, 2019

(32,028)

60,008,481

Ending balance at Jun. 30, 2019

$ 112,453

$ 376,853

$ (264,400)

[1]	Refer to Note 14 regarding the public offering issued during July 2017 and May 2018.
[2]	Refer to Note 4 regarding the business acquisition executed during November 2017.
[3]	Refer to Note 3 regarding the adoption of ASU 2016-09.
[4]	Includes 3,577 shares previously held in escrow in relation to the Cantaloupe acquisition.

Consolidated Statements of Shareholders' Equity (Parenthetical) $ in Thousands	12 Months Ended
	Jun. 30, 2018 USD ($) shares
Statement of Stockholders' Equity [Abstract]
Offering costs incurred \| $	$ 7,964
Shares previously held in escrow \| shares	3,577

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
OPERATING ACTIVITIES:
Net loss	$ (32,028)	$ (11,284)	$ (7,465)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Non-cash stock-based compensation	1,750	1,794	1,214
(Gain) loss on disposal of property and equipment	672	(131)	(177)
Non-cash interest and amortization of debt discount	301	140	113
Bad debt expense	2,534	471	557
Provision for inventory reserve	3,172	1,467	877
Depreciation and amortization	8,009	7,829	5,956
Change in fair value of warrant liabilities	0	0	1,490
Excess tax benefits	0	67	0
Deferred income taxes, net	(7)	(183)	62
Changes in operating assets and liabilities:
Accounts receivable	(8,488)	(6,234)	(2,538)
Finance receivables, net	(8)	2,228	(10,832)
Sale of finance receivables	0	2,280	0
Inventory, net	(5,242)	(3,661)	(4,463)
Prepaid expenses and other current assets	(395)	377	153
Accounts payable and accrued expenses	873	16,933	8,874
Deferred revenue	(98)	351	115
Income taxes payable	254	(13)	(8)
Net cash (used in) provided by operating activities	(28,701)	12,431	(6,072)
INVESTING ACTIVITIES:
Purchase of property and equipment, including rentals	(4,346)	(3,978)	(3,787)
Proceeds from sale of property and equipment	116	298	348
Cash paid for acquisitions, net of cash acquired	0	(65,181)	0
Net cash used in investing activities	(4,230)	(68,861)	(3,439)
FINANCING ACTIVITIES:
Proceeds from collateralized borrowing from the transfer of finance receivables	0	1,075	0
Cash used in retirement of common stock	(81)	(552)	(31)
Proceeds from exercise of common stock options	42	141	0
Proceeds from exercise of common stock warrants	0	0	6,193
Cash used for repurchase of common stock awards	(120)	0	0
Payment of debt issuance costs	(156)	(445)	(90)
Proceeds from issuance of long-term debt	0	25,100	0
Proceeds from revolving credit facility	0	12,500	0
Repayment of revolving credit facility	0	(2,500)	0
Issuance of common stock in public offering, net	0	104,796	0
Repayment of line of credit	0	(7,111)	(106)
Repayment of capital lease obligations and long-term debt	(23,254)	(5,355)	(2,982)
Net cash (used in) provided by financing activities	(23,569)	127,649	2,984
Net (decrease) increase in cash and cash equivalents	(56,500)	71,219	(6,527)
Cash and cash equivalents at beginning of year	83,964	12,745	19,272
Cash and cash equivalents at end of year	27,464	83,964	12,745
Supplemental disclosures of cash flow information:
Interest paid in cash	2,793	2,878	2,050
Income taxes paid in cash	50	17	39
Supplemental disclosures of noncash financing and investing activities:
Equity issued in connection with Cantaloupe acquisition, net of post-working capital adjustment for retired shares	0	23,279	0
Settlement of collateralized borrowing from the sale of finance receivables	0	987	0
Reclass of rental program property to inventory, net	32	54	156
Prepaid items financed with debt	0	0	54
Equipment and software acquired under capital lease	$ 5	$ 217	$ 332

BUSINESS	12 Months Ended
BUSINESS	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BUSINESS	BUSINESS Overview 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 and consumer engagement services 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 and IoT services, which include the ability to remotely monitor, control, and report on the results of distributed assets containing our electronic payment solutions. Historically, these distributed assets have relied on cash for payment in the form of coins or bills, whereas, our systems allow them to accept cashless payments such as through the use of credit or debit cards or other emerging contactless forms, such as mobile payment. The connection to the ePort Connect platform also enables consumer loyalty programs, national rewards programs and digital content, including advertisements and product information to be delivered at the point of sale. On November 9, 2017, the Company acquired all of the outstanding equity interests of Cantaloupe Systems, Inc. (“Cantaloupe”), pursuant to the Agreement and Plan of Merger (“Merger Agreement”). Cantaloupe is a premier provider of cloud and mobile solutions for vending, micro markets, and office coffee service. The acquisition expanded the Company’s existing platform to become an end-to-end enterprise platform integrating Cantaloupe’s Seed Cloud which provides cloud and mobile solutions for dynamic route scheduling, automated pre-kitting, responsive merchandising, inventory management, warehouse and accounting management, as well as cashless vending. The combined companies complete the value chain for customers by providing both top-line revenue generating services as well as bottom line business efficiency services to help operators of unattended retail machines run their business better. The combined product offering provides the data-rich Seed system with USAT’s consumer benefits, providing operators with valuable consumer data that results in customized experiences. In addition to new technology and services, due to Cantaloupe’s existing customer base, the acquisition expands the Company’s footprint into new global markets. Liquidity The Company has adopted Accounting Standards Codification, (“ASC”) 205-40. This guidance amended the existing requirements for disclosing information about an entity’s ability to continue as a going concern and explicitly requires management to assess an entity’s ability to continue as a going concern and to provide related disclosures in certain circumstances. This guidance was effective for annual reporting periods ending after December 15, 2016, and for annual and interim reporting periods thereafter. The following information reflects the results of management’s assessment, plans and conclusion of the Company’s ability to continue as a going concern. At June 30, 2019, the Company had in $27.5 million cash and a working capital surplus of $2.8 million. As noted in Note 12, as of June 30, 2019, the Company was not in compliance with the fixed charge coverage ratio and the total leverage ratio of its Revolving Credit Facility and Term Loan, which represents an event of default under the credit agreement. As a result, the Company has classified all amounts outstanding ($11.5 million) under these credit facilities as current liabilities. Additionally, during the year ended June 30, 2019, the Company identified sales tax liabilities and related interest in the aggregate amount of $16.6 million. Also, the Company has reported aggregate net losses of $50.8 million for the three year period ended June 30, 2019. In response to its need to develop a cash management strategy, the Company developed a plan that included potentially seeking to extend the credit borrowings to beyond one year, securing a commitment for the sale of its long-term receivables, and obtaining outside financing. Pursuant to a Stock Purchase Agreement dated October 9, 2019 between the Company and Antara Capital Master Fund LP (“Antara”), the Company sold to Antara 3,800,000 shares of the Company’s common stock at a price of $5.25 per share for an aggregate purchase price of $19,950,000. Antara qualifies as an accredited investor under Rule 501 of the Securities Act of 1933, as amended (the "Act"), and the offer and sale of the shares was exempt from registration under Section 4(a)(2) of the Act. Antara agreed not to dispose of the shares for a period of 90 days from the closing date. The Company also entered into a registration rights agreement (the "Registration Rights Agreement") with Antara, pursuant to which the Company has agreed, at its expense, to file a registration statement under the Act with the Securities and Exchange Commission (the "SEC") covering the resale of the shares by Antara (the "Registration Statement"). The Company will be required to pay certain negotiated cash payments to Antara in the event that the Registration Statement is not filed within 30 days of the closing date or if the Registration Statement is not declared effective within three months of the closing date, subject to the terms of the Registration Rights Agreement. In connection with the private placement, William Blair & Company, L.L.C. (“Blair”) acted as exclusive placement agent for the Company and received a cash placement fee of $1.2 million. On October 9, 2019, the Company also entered into a commitment letter (“Commitment Letter”) with Antara, pursuant to which Antara has committed to extend to the Company a $30.0 million senior secured term loan facility (“Term Facility”). The Term Facility is subject to various closing conditions, including the execution and delivery of definitive loan documentation by the Company and Antara on or before October 31, 2019. Pursuant to the Commitment Letter, the Company would draw $15.0 million of the Term Facility concurrently with the execution of the definitive loan documentation, and subject to the terms of the definitive loan documentation, would draw an additional $15.0 million during the period commencing on the nine-month anniversary and terminating on the eighteen-month anniversary of the execution of the definitive loan documentation. The outstanding amount of the draws under the Term Facility would bear interest at 9.75% per annum, payable monthly in arrears. Upon the execution of the Commitment Letter, the Company paid to Antara a non-refundable commitment fee of $1.2 million. In connection with the Commitment Letter, Blair acted as exclusive placement agent for the Company and received a cash placement fee of $750,000. The Company believes that its current financial resources, as of the date of the issuance of these consolidated financial statements, are sufficient to fund its current twelve month operating budget, alleviating any substantial doubt raised by our historical operating results and satisfying our estimated liquidity needs for twelve months from the issuance of these consolidated financial statements.

RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS

12 Months Ended

Jun. 30, 2019

Accounting Changes and Error Corrections [Abstract]

RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS

Overview

This Annual Report on Form 10-K for the fiscal year ended June 30, 2019 contains our audited consolidated financial statements for the fiscal years ended June 30, 2019 and 2018, which have not previously been filed, as well as restatements of the following previously filed consolidated financial statements: (i) our audited consolidated financial statements for the fiscal year ended June 30, 2017; (ii) our selected financial data as of and for the fiscal years ended June 30, 2017, 2016 and 2015 contained in Item 6 of this Form 10-K; and (iii) our unaudited consolidated financial statements for the fiscal quarters ended September 30, 2017 and 2016, December 31, 2017 and 2016, March 31, 2018 and 2017, and June 30, 2017 in Note 20, “Unaudited Quarterly Data” of the Notes to Consolidated Financial Statements.

We have not filed and do not intend to file amendments to any of our previously filed Annual Reports on Form 10-K or Quarterly Reports on Form 10-Q for the periods affected by the restatements of our consolidated financial statements. In addition, we have not filed and do not intend to file a separate Annual Report on Form 10-K for the fiscal year ended June 30, 2018. Concurrent with this filing, we are filing our Quarterly Reports on Form 10-Q for each of the fiscal quarters ended September 30, 2018, December 31, 2018, and March 31, 2019 (the “Fiscal Year 2019 Form 10-Qs”). We have not timely filed our Annual Report on Form 10-K for the fiscal year ended June 30, 2018 and the Fiscal Year 2019 Form 10-Qs as a result of the internal investigation of the Audit Committee of the Company’s Board of Directors (the “Audit Committee”) and the subsequent restatement of certain of our prior period financial statements as more fully described below.

Background

On September 11, 2018, the Company announced that the Audit Committee with the assistance of independent legal and forensic accounting advisors, was in the process of conducting an internal investigation of current and prior period matters relating to certain of the Company’s contractual arrangements, including the accounting treatment, financial reporting and internal controls related to such arrangements. The Audit Committee’s investigation focused principally on certain customer transactions entered into by the Company during fiscal years 2017 and 2018.

On January 14, 2019, the Company reported that the Audit Committee’s internal investigation relating to accounting and reporting matters was substantially completed, the principal findings of the internal investigation, and the remedial actions to be implemented by the Company as a result of the internal investigation. The Audit Committee found that, for certain of the customer transactions under review, the Company had prematurely recognized revenue. The Audit Committee proposed certain adjustments to previously reported revenues related to fiscal quarters occurring during the 2017 and 2018 fiscal years of the Company. In most cases, revenues that had been recognized prematurely were, or were expected to be, recognized in subsequent quarters, including quarters subsequent to the quarters impacted by the investigative findings. The investigation further found that certain items that had been recorded as expenses, such as the payment of marketing or servicing fees, were more appropriately treated as contra-revenue items in earlier fiscal quarters.

On February 4, 2019, the Board of Directors of the Company, upon the recommendation of the Audit Committee, and based upon the adjustments to previously reported revenues proposed by the Audit Committee, determined that the following financial statements previously issued by the Company should no longer be relied upon: (1) the audited consolidated financial statements for the fiscal year ended June 30, 2017; and (2) the quarterly and year-to-date unaudited consolidated financial statements for September 30, 2017, December 31, 2017, and March 31, 2018.

In addition to the Audit Committee investigation matter described above, the Company also corrected for (i) out of period adjustments and errors related to the Company's acquisition and financial integration of Cantaloupe and (ii) out of period adjustments and errors identified during management's review of significant accounts and transactions.

The acquisition and financial integration-related adjustments referred to in (i) above were made in the restatement and relate to errors in the purchase accounting for our acquisition of Cantaloupe and errors in periods subsequent to the acquisition resulting from an ineffective integration of the financial systems and processes of the acquired entity with those of the Company.

The significant account and transaction review adjustments referred to in (ii) above were made in the restatement and relate to revenue recognition, deferred income tax accounting, sales-tax reserves, reserves for bad debts, inventory reserves, sale-leaseback accounting, balance sheet classification of preferred stock, and various other matters.

On October 7, 2019, the Board of Directors of the Company, upon the recommendation of the Audit Committee, determined that the following financial statements previously issued by the Company should no longer be relied upon: (1) the audited consolidated financial statements for the fiscal year ended June 30, 2015; (2) the audited consolidated financial statements for the fiscal year ended June 30, 2016; and (3) the quarterly and year-to-date unaudited consolidated financial statements for September 30, 2016, December 31, 2016, and March 31, 2017.

Effect of Restatement on Previously Filed June 30, 2017 Form 10-K

A summary of the impact of these matters on income (loss) before taxes is presented below:



($ in thousands)	Increase / (Decrease) Restatement Impact
	Year ended June 30, 2017
Audit Committee Investigation-related Adjustments:
Revenue	$	(2,568	)
Costs of sales	$	(1,163	)
Gross profit	$	(1,405	)
Operating income (loss)	$	(1,405	)
Loss before income taxes	$	(1,405	)

Significant Account and Transaction Review and Other:
Revenue	$	(89	)
Costs of sales	$	91
Gross profit	$	(180	)
Operating income (loss)	$	(2,864	)
Loss before income taxes	$	(4,200	)

A summary of the impact of these matters on the consolidated balance sheet is presented below, excluding any tax effect from the restatement adjustments in the aggregate:



($ in thousands)	Increase / (Decrease) Restatement Impact
	As of June 30, 2017
Audit Committee Investigation-related Adjustments:
Accounts receivable	$	(284	)
Finance receivables, net	$	(1,267	)
Inventory, net	$	1,106
Prepaid expenses and other current assets	$	25
Other assets	$	88
Accounts payable	$	270
Accrued expenses	$	803

Significant Account and Transaction Review and Other:
Accounts receivable	$	(75	)
Inventory, net	$	(500	)
Prepaid expenses and other current assets	$	(114	)
Other assets	$	(456	)
Property and equipment, net	$	(1,000	)
Accounts payable	$	21
Accrued expenses	$	7,235
Capital lease obligation and current obligations under long-term debt	$	(32	)
Deferred revenue	$	(27	)
Deferred gain from sale-leaseback transactions	$	(239	)
Deferred gain from sale-leaseback transactions, less current portion	$	(100	)

The restatement adjustments related to fiscal years 2016 and 2015 are reflected in the beginning accumulated deficit and deferred income taxes balances in the consolidated financial statements for fiscal year 2017. The cumulative impact of these adjustments increased accumulated deficit and decreased deferred income taxes by approximately $32.6 million and $27.8 million, respectively, at the beginning of fiscal year 2017. The restatement adjustments were tax effected and any tax adjustments reflected in the consolidated financial statements for fiscal year 2017 relate entirely to the tax effect on the restatement adjustments.

The tables below present the effect of the financial statement adjustments related to the restatement discussed above of the Company's previously reported financial statements as of and for the year ended June 30, 2017.

The effect of the restatement on the previously filed consolidated balance sheet as of June 30, 2017 is as follows:



	As of June 30, 2017
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Assets
Current assets:
Cash and cash equivalents	$	12,745		$	—		$	12,745
Accounts receivable	7,193			(359		)	6,834
Finance receivables, net	11,010			(1,267		)	9,743
Inventory, net	4,586			606			5,192
Prepaid expenses and other current assets	968			(89		)	879
Total current assets	36,502			(1,109		)	35,393

Non-current assets:
Finance receivables due after one year	8,607			—			8,607
Other assets	687			(368		)	319
Property and equipment, net	12,111			(1,000		)	11,111
Deferred income taxes	27,670			(27,670		)	—
Intangibles, net	622			—			622
Goodwill	11,492			—			11,492
Total non-current assets	61,189			(29,038		)	32,151

Total assets	$	97,691		$	(30,147	)	$	67,544

Liabilities, convertible preferred stock and shareholders’ equity
Current liabilities:
Accounts payable	$	16,054		$	291		$	16,345
Accrued expenses	4,130			7,743			11,873
Line of credit, net	7,036			—			7,036
Capital lease obligations and current obligations under long-term debt	3,230			(32		)	3,198
Income taxes payable	10			—			10
Deferred revenue	—			268			268
Deferred gain from sale-leaseback transactions	239			(239		)	—
Total current liabilities	30,699			8,031			38,730

Long-term liabilities:
Deferred income taxes	—			94			94
Capital lease obligations and long-term debt, less current portion	1,061			—			1,061
Accrued expenses, less current portion	53			—			53
Deferred gain from sale-leaseback transactions, less current portion	100			(100		)	—
Total long-term liabilities	1,214			(6		)	1,208

Total liabilities	$	31,913		$	8,025		$	39,938
Commitments and contingencies
Convertible preferred stock:
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $18,775 at June 30, 2017	—			3,138			3,138
Shareholders’ equity:
Preferred stock, no par value, 1,800,000 shares authorized, no shares issued	—			—			—
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $18,775 at June 30, 2017	3,138			(3,138		)	—
Common stock, no par value, 640,000,000 shares authorized, 40,331,645 shares issued and outstanding at June 30, 2017	245,999			—			245,999
Accumulated deficit	(183,359		)	(38,172		)	(221,531		)
Total shareholders’ equity	65,778			(41,310		)	24,468
Total liabilities, convertible preferred stock and shareholders’ equity	$	97,691		$	(30,147	)	$	67,544

The effect of the restatement on the previously filed consolidated statement of operations for the year ended June 30, 2017 is as follows:



	Year ended June 30, 2017
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Revenue:
License and transaction fees	$	69,142		$	(8	)	$	69,134
Equipment sales	34,951			(2,649		)	32,302
Total revenue	104,093			(2,657		)	101,436

Costs of sales:
Cost of services	47,053			(533		)	46,520
Cost of equipment	30,394			(539		)	29,855
Total costs of sales	77,447			(1,072		)	76,375
Gross profit	26,646			(1,585		)	25,061

Operating expenses:
Selling, general and administrative	25,493			2,684			28,177
Depreciation and amortization	1,018			—			1,018
Total operating expenses	26,511			2,684			29,195
Operating income (loss)	135			(4,269		)	(4,134		)

Other income (expense):
Interest income	482			—			482
Interest expense	(892		)	(1,336		)	(2,228		)
Change in fair value of warrant liabilities	(1,490		)	—			(1,490		)
Total other expense, net	(1,900		)	(1,336		)	(3,236		)

Loss before income taxes	(1,765		)	(5,605		)	(7,370		)
Provision for income taxes	(87		)	(8		)	(95		)

Net loss	(1,852		)	(5,613		)	(7,465		)
Preferred dividends	(668		)	—			(668		)
Net loss applicable to common shares	$	(2,520	)	$	(5,613	)	$	(8,133	)
Net loss per common share
Basic	$	(0.06	)	$	(0.14	)	$	(0.20	)
Diluted	$	(0.06	)	$	(0.14	)	$	(0.20	)
Weighted average number of common shares outstanding
Basic	39,860,335			—			39,860,335
Diluted	39,860,335			—			39,860,335

The effect of the restatement on the previously filed consolidated statement of cash flows for the year ended June 30, 2017 is as follows:



	Year ended June 30, 2017
($ in thousands)	As Previously Reported			Adjustments			As Restated

OPERATING ACTIVITIES:
Net loss	$	(1,852	)	$	(5,613	)	$	(7,465	)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash stock-based compensation	1,214			—			1,214
(Gain) loss on disposal of property and equipment	(177		)	—			(177		)
Non-cash interest and amortization of debt discount	113			—			113
Bad debt expense	764			(207		)	557
Provision for inventory reserve	—			877			877
Depreciation and amortization	5,591			365			5,956
Change in fair value of warrant liabilities	1,490			—			1,490
Deferred income taxes, net	54			8			62
Recognition of deferred gain from sale-leaseback transactions	(560		)	560			—
Changes in operating assets and liabilities:
Accounts receivable	(2,988		)	450			(2,538		)
Finance receivables, net	(12,119		)	1,287			(10,832		)
Inventory, net	(2,399		)	(2,064		)	(4,463		)
Prepaid expenses and other current assets	(304		)	457			153
Accounts payable and accrued expenses	4,410			4,464			8,874
Deferred revenue	—			115			115
Income taxes payable	(8		)	—			(8		)
Net cash used in operating activities	(6,771		)	699			(6,072		)

INVESTING ACTIVITIES:
Purchase of property and equipment, including rentals	(4,041		)	254			(3,787		)
Proceeds from sale of property and equipment	348			—			348
Net cash used in investing activities	(3,693		)	254			(3,439		)

FINANCING ACTIVITIES:
Cash used in retirement of common stock	(31		)	—			(31		)
Proceeds from exercise of common stock warrants	6,193			—			6,193
Payment of debt issuance costs	(90		)	—			(90		)
Repayment of line of credit	(106		)	—			(106		)
Repayment of capital lease obligations and long-term debt	(2,029		)	(953		)	(2,982		)
Net cash provided by financing activities	3,937			(953		)	2,984

Net decrease in cash and cash equivalents	(6,527		)	—			(6,527		)
Cash and cash equivalents at beginning of year	19,272			—			19,272
Cash and cash equivalents at end of year	$	12,745		$	—		$	12,745

A summary of the impact of these matters on income (loss) before taxes is presented below:



($ in thousands)	Increase / (Decrease) Restatement Impact
	Three months ended September 30, 2017			Three months ended December 31, 2017			Six months ended December 31, 2017			Three months ended March 31, 2018			Nine months ended March 31, 2018
Audit Committee Investigation-related Adjustments:
Revenue	$	(411	)	$	(866	)	$	(1,277	)	$	(768	)	$	(2,045	)
Costs of sales	$	165		$	(1,225	)	$	(1,060	)	$	(293	)	$	(1,353	)
Gross profit	$	(576	)	$	359		$	(217	)	$	(475	)	$	(692	)
Operating income (loss)	$	(576	)	$	359		$	(217	)	$	(9	)	$	(226	)
Income (loss) before income taxes	$	(576	)	$	357		$	(219	)	$	(29	)	$	(248	)

Acquisition and Financial Integration-related Adjustments:
Revenue	$	—		$	(60	)	$	(60	)	$	(1,546	)	$	(1,606	)
Costs of sales	$	—		$	(33	)	$	(33	)	$	(79	)	$	(112	)
Gross profit	$	—		$	(27	)	$	(27	)	$	(1,467	)	$	(1,494	)
Operating income (loss)	$	—		$	(288	)	$	(288	)	$	(1,594	)	$	(1,882	)
Income (loss) before income taxes	$	—		$	(223	)	$	(223	)	$	(1,499	)	$	(1,722	)

Significant Account and Transaction Review and Other:
Revenue	$	53		$	(47	)	$	6		$	75		$	81
Costs of sales	$	497		$	313		$	810		$	231		$	1,041
Gross profit	$	(444	)	$	(360	)	$	(804	)	$	(156	)	$	(960	)
Operating income (loss)	$	(622	)	$	(775	)	$	(1,397	)	$	(461	)	$	(1,858	)
Income (loss) before income taxes	$	(886	)	$	(1,041	)	$	(1,927	)	$	(696	)	$	(2,623	)



($ in thousands)	Increase / (Decrease) Restatement Impact
	Three months ended September 30, 2016			Three months ended December 31, 2016			Six months ended December 31, 2016			Three months ended March 31, 2017			Nine months ended March 31, 2017			Three months ended June 30, 2017
Audit Committee Investigation-related Adjustments:
Revenue	$	—		$	—		$	—		$	(111	)	$	(111	)	$	(2,457	)
Costs of sales	$	—		$	—		$	—		$	(24	)	$	(24	)	$	(1,139	)
Gross profit	$	—		$	—		$	—		$	(87	)	$	(87	)	$	(1,318	)
Operating income (loss)	$	—		$	—		$	—		$	(87	)	$	(87	)	$	(1,318	)
Income (loss) before income taxes	$	—		$	—		$	—		$	(87	)	$	(87	)	$	(1,318	)

Significant Account and Transaction Review and Other:
Revenue	$	(18	)	$	31		$	13		$	(49	)	$	(36	)	$	(53	)
Costs of sales	$	(148	)	$	(81	)	$	(229	)	$	147		$	(82	)	$	173
Gross profit	$	130		$	112		$	242		$	(196	)	$	46		$	(226	)
Operating income (loss)	$	(434	)	$	(124	)	$	(558	)	$	(790	)	$	(1,348	)	$	(1,516	)
Income (loss) before income taxes	$	(769	)	$	(441	)	$	(1,210	)	$	(1,159	)	$	(2,369	)	$	(1,831	)

A summary of the impact of these matters on the consolidated balance sheet is presented below, excluding any tax effect from the restatement adjustments in the aggregate:



($ in thousands)	Increase / (Decrease) Restatement Impact
	As of September 30, 2016			As of December 31, 2016			As of March 31, 2017			As of September 30, 2017			As of December 31, 2017			As of March 31, 2018
Audit Committee Investigation-related Adjustments:
Accounts receivables	$	—		$	—		$	—		$	(315	)	$	(1,774	)	$	(1,954	)
Finance receivables, net	$	—		$	—		$	92		$	(1,640	)	$	(1,269	)	$	(1,666	)
Inventory, net	$	—		$	—		$	—		$	941		$	2,166		$	2,459
Prepaid expenses and other current assets	$	—		$	—		$	30		$	25		$	25		$	25
Other assets	$	—		$	—		$	95		$	82		$	76		$	69
Property and equipment, net	$	—		$	—		$	—		$	—		$	(162	)	$	(146	)
Accounts payable	$	—		$	—		$	270		$	270		$	106		$	99
Accrued expenses	$	—		$	—		$	34		$	803		$	580		$	341

Acquisition and Financial Integration-related Adjustments:
Cash and cash equivalents	$	—		$	—		$	—		$	—		$	(26	)	$	(52	)
Accounts receivables	$	—		$	—		$	—		$	—		$	1,133		$	(1,974	)
Finance receivables, net	$	—		$	—		$	—		$	—		$	(1,515	)	$	158
Inventory, net	$	—		$	—		$	—		$	—		$	(500	)	$	(500	)
Prepaid expenses and other current assets	$	—		$	—		$	—		$	—		$	(35	)	$	(44	)
Property and equipment, net	$	—		$	—		$	—		$	—		$	721		$	826
Other assets	$	—		$	—		$	—		$	—		$	(139	)	$	(175	)
Goodwill	$	—		$	—		$	—		$	—		$	4,121		$	4,121
Accrued expenses	$	—		$	—		$	—		$	—		$	785		$	883
Deferred revenue	$	—		$	—		$	—		$	—		$	(153	)	$	(153	)
Common stock	$	—		$	—		$	—		$	—		$	3,469		$	3,469

Significant Account and Transaction Review and Other:
Accounts receivables	$	(143	)	$	110		$	61		$	77		$	(8	)	$	127
Finance receivables, net	$	—		$	—		$	—		$	—		$	1,074		$	28
Inventory, net	$	(338	)	$	(348	)	$	(470	)	$	(305	)	$	(861	)	$	(1,067	)
Prepaid expenses and other current assets	$	13		$	13		$	13		$	(136	)	$	(150	)	$	(173	)
Other assets	$	—		$	—		$	—		$	(543	)	$	(600	)	$	(693	)
Property and equipment, net	$	2,865		$	2,561		$	2,168		$	(1,149	)	$	(737	)	$	(635	)
Accounts payable	$	17		$	19		$	21		$	25		$	27		$	29
Accrued expenses	$	4,506		$	5,222		$	6,166		$	8,319		$	9,087		$	9,877
Line of credit, net	$	13		$	13		$	13		$	—		$	—		$	—
Capital lease obligation and current obligations under long-term debt	$	4,117		$	3,566		$	2,998		$	(21	)	$	367		$	(5	)
Deferred revenue	$	—		$	—		$	—		$	(27	)	$	(27	)	$	(27	)
Deferred gain from sale-leaseback transactions	$	(685	)	$	(470	)	$	(255	)	$	(198	)	$	(198	)	$	(198	)
Deferred gain from sale-leaseback transactions, less current portion	$	—		$	—		$	—		$	(99	)	$	(49	)	$	—
Capital lease obligation and long-term debt, less current portion	$	—		$	—		$	—		$	—		$	697		$	—
Common stock	$	—		$	—		$	—		$	(166	)	$	(372	)	$	(867	)

The effect of the restatement on the previously filed consolidated balance sheet as of September 30, 2017 is as follows:



	As of September 30, 2017
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Assets
Current assets:
Cash and cash equivalents	$	51,870		$	—		$	51,870
Accounts receivable	10,288			(473		)	9,815
Finance receivables, net	3,082			(1,641		)	1,441
Inventory, net	8,240			636			8,876
Prepaid expenses and other current assets	1,122			(66		)	1,056
Total current assets	74,602			(1,544		)	73,058

Non-current assets:
Finance receivables due after one year	7,742			—			7,742
Other assets	750			(461		)	289
Property and equipment, net	11,850			(1,149		)	10,701
Deferred income taxes	28,205			(28,205		)	—
Intangibles, net	578			—			578
Goodwill	11,492			—			11,492
Total non-current assets	60,617			(29,815		)	30,802

Total assets	$	135,219		$	(31,359	)	$	103,860

Liabilities, convertible preferred stock and shareholders’ equity
Current liabilities:
Accounts payable	$	14,211		$	295		$	14,506
Accrued expenses	3,795			8,422			12,217
Line of credit, net	7,051			—			7,051
Capital lease obligations and current obligations under long-term debt	2,649			(21		)	2,628
Income taxes payable	10			(10		)	—
Deferred revenue	—			439			439
Deferred gain from sale-leaseback transactions	197			(197		)	—
Total current liabilities	27,913			8,928			36,841

Long-term liabilities:
Deferred income taxes	—			109			109
Capital lease obligations and long-term debt, less current portion	1,049			—			1,049
Accrued expenses, less current portion	62			—			62
Deferred gain from sale-leaseback transactions, less current portion	99			(99		)	—
Total long-term liabilities	1,210			10			1,220

Total liabilities	$	29,123		$	8,938		$	38,061
Commitments and contingencies
Convertible preferred stock:
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $19,109 at September 30, 2017	—			3,138			3,138
Shareholders’ equity:
Preferred stock, no par value, 1,800,000 shares authorized, no shares issued	—			—			—
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $19,109 at September 30, 2017	3,138			(3,138		)	—
Common stock, no par value, 640,000,000 shares authorized, 50,194,731 shares issued and outstanding at September 30, 2017	286,463			(167		)	286,296
Accumulated deficit	(183,505		)	(40,130		)	(223,635		)
Total shareholders’ equity	106,096			(43,435		)	62,661
Total liabilities, convertible preferred stock and shareholders’ equity	$	135,219		$	(31,359	)	$	103,860

The effect of the restatement on the previously filed consolidated statement of operations for the three months ended September 30, 2017 is as follows:



	Three months ended September 30, 2017
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Revenue:
License and transaction fees	$	19,944		$	(547	)	$	19,397
Equipment sales	5,673			189			5,862
Total revenue	25,617			(358		)	25,259

Costs of sales:
Cost of services	13,326			(79		)	13,247
Cost of equipment	5,090			741			5,831
Total costs of sales	18,416			662			19,078
Gross profit	7,201			(1,020		)	6,181

Operating expenses:
Selling, general and administrative	6,746			178			6,924
Integration and acquisition costs	762			—			762
Depreciation and amortization	245			—			245
Total operating expenses	7,753			178			7,931
Operating loss	(552		)	(1,198		)	(1,750		)

Other income (expense):
Interest income	80			—			80
Interest expense	(209		)	(264		)	(473		)
Total other expense, net	(129		)	(264		)	(393		)

Loss before income taxes	(681		)	(1,462		)	(2,143		)
Benefit (provision) for income taxes	468			(496		)	(28		)

Net loss	(213		)	(1,958		)	(2,171		)
Preferred dividends	(334		)	—			(334		)
Net loss applicable to common shares	$	(547	)	$	(1,958	)	$	(2,505	)
Net loss per common share
Basic	$	(0.01	)	$	(0.04	)	$	(0.05	)
Diluted	$	(0.01	)	$	(0.04	)	$	(0.05	)
Weighted average number of common shares outstanding
Basic	47,573,364			—			47,573,364
Diluted	47,573,364			—			47,573,364

The effect of the restatement on the previously filed consolidated statement of cash flows for the three months ended September 30, 2017 is as follows:



	Three months ended September 30, 2017
($ in thousands)	As Previously Reported			Adjustments			As Restated

OPERATING ACTIVITIES:
Net loss	$	(213	)	$	(1,958	)	$	(2,171	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Non-cash stock-based compensation	576			(167		)	409
(Gain) loss on disposal of property and equipment	(18		)	—			(18		)
Non-cash interest and amortization of debt discount	15			2			17
Bad debt expense	118			50			168
Provision for inventory reserve	—			221			221
Depreciation and amortization	1,492			(122		)	1,370
Excess tax benefits	67			—			67
Deferred income taxes, net	(535		)	551			16
Recognition of deferred gain from sale-leaseback transactions	(43		)	43			—
Changes in operating assets and liabilities:
Accounts receivable	(3,192		)	43			(3,149		)
Finance receivables, net	8,771			397			9,168
Inventory, net	(3,648		)	(252		)	(3,900		)
Prepaid expenses and other current assets	(217		)	114			(103		)
Accounts payable and accrued expenses	(2,168		)	678			(1,490		)
Deferred revenue	—			171			171
Income taxes payable	—			(55		)	(55		)
Net cash provided by operating activities	1,005			(284		)	721

INVESTING ACTIVITIES:
Purchase of property and equipment, including rentals	(992		)	272			(720		)
Proceeds from sale of property and equipment	45			—			45
Net cash used in investing activities	(947		)	272			(675		)

FINANCING ACTIVITIES:
Issuance of common stock in public offering, net	39,888			—			39,888
Repayment of capital lease obligations and long-term debt	(821		)	12			(809		)
Net cash provided by financing activities	39,067			12			39,079

Net increase in cash and cash equivalents	39,125			—			39,125
Cash and cash equivalents at beginning of year	12,745			—			12,745
Cash and cash equivalents at end of period	$	51,870		$	—		$	51,870

The effect of the restatement on the previously filed consolidated balance sheet as of December 31, 2017 is as follows:



	As of December 31, 2017
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Assets
Current assets:
Cash and cash equivalents	$	15,386		$	(26	)	$	15,360
Accounts receivable	15,472			(765		)	14,707
Finance receivables, net	5,517			(2,221		)	3,296
Inventory, net	11,215			804			12,019
Prepaid expenses and other current assets	1,971			(361		)	1,610
Total current assets	49,561			(2,569		)	46,992

Non-current assets:
Finance receivables due after one year	11,215			513			11,728
Other assets	1,120			(662		)	458
Property and equipment, net	12,622			(179		)	12,443
Deferred income taxes	14,774			(14,774		)	—
Intangibles, net	30,910			—			30,910
Goodwill	64,449			(46		)	64,403
Total non-current assets	135,090			(15,148		)	119,942

Total assets	$	184,651		$	(17,717	)	$	166,934

Liabilities, convertible preferred stock and shareholders’ equity
Current liabilities:
Accounts payable	$	23,775		$	133		$	23,908
Accrued expenses	6,798			9,825			16,623
Capital lease obligations, current obligations under long-term debt, and collateralized borrowings	5,121			367			5,488
Income taxes payable	6			(6		)	—
Deferred revenue	595			135			730
Deferred gain from sale-leaseback transactions	198			(198		)	—
Total current liabilities	36,493			10,256			46,749

Long-term liabilities:
Revolving credit facility	10,000			—			10,000
Deferred income taxes	—			91			91
Capital lease obligations, long-term debt, and collateralized borrowings, less current portion	23,874			696			24,570
Accrued expenses, less current portion	65			—			65
Deferred gain from sale-leaseback transactions, less current portion	49			(49		)	—
Total long-term liabilities	33,988			738			34,726

Total liabilities	$	70,481		$	10,994		$	81,475
Commitments and contingencies
Convertible preferred stock:
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $19,109 at December 31, 2017	—			3,138			3,138
Shareholders’ equity:
Preferred stock, no par value, 1,800,000 shares authorized, no shares issued	—			—			—
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $19,109 at December 31, 2017	3,138			(3,138		)	—
Common stock, no par value, 640,000,000 shares authorized, 53,619,898 shares issued and outstanding at December 31, 2017	307,053			3,097			310,150
Accumulated deficit	(196,021		)	(31,808		)	(227,829		)
Total shareholders’ equity	114,170			(31,849		)	82,321
Total liabilities, convertible preferred stock and shareholders’ equity	$	184,651		$	(17,717	)	$	166,934

The effect of the restatement on the previously filed consolidated statement of operations for the three and six months ended December 31, 2017 is as follows:



	Three months ended December 31, 2017									Six months ended December 31, 2017
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated			As Previously Reported			Adjustments			As Restated

Revenue:
License and transaction fees	$	22,853		$	661		$	23,514		$	42,797		$	114		$	42,911
Equipment sales	9,653			(1,635		)	8,018			15,326			(1,446		)	13,880
Total revenue	32,506			(974		)	31,532			58,123			(1,332		)	56,791

Costs of sales:
Cost of services	14,362			(6		)	14,356			27,688			(85		)	27,603
Cost of equipment	8,943			(939		)	8,004			14,033			(198		)	13,835
Total costs of sales	23,305			(945		)	22,360			41,721			(283		)	41,438
Gross profit	9,201			(29		)	9,172			16,402			(1,049		)	15,353

Operating expenses:
Selling, general and administrative	8,329			676			9,005			15,075			854			15,929
Integration and acquisition costs	3,335			—			3,335			4,097			—			4,097
Depreciation and amortization	737			—			737			982			—			982
Total operating expenses	12,401			676			13,077			20,154			854			21,008
Operating loss	(3,200		)	(705		)	(3,905		)	(3,752		)	(1,903		)	(5,655		)

Other income (expense):
Interest income	251			73			324			331			73			404
Interest expense	(494		)	(276		)	(770		)	(703		)	(540		)	(1,243		)
Total other expense, net	(243		)	(203		)	(446		)	(372		)	(467		)	(839		)

Loss before income taxes	(3,443		)	(908		)	(4,351		)	(4,124		)	(2,370		)	(6,494		)
(Provision) benefit for income taxes	(9,073		)	9,230			157			(8,605		)	8,734			129

Net loss	(12,516		)	8,322			(4,194		)	(12,729		)	6,364			(6,365		)
Preferred dividends	—			—			—			(334		)	—			(334		)
Net loss applicable to common shares	$	(12,516	)	$	8,322		$	(4,194	)	$	(13,063	)	$	6,364		$	(6,699	)
Net loss per common share
Basic	$	(0.24	)	$	0.16		$	(0.08	)	$	(0.26	)	$	0.13		$	(0.13	)
Diluted	$	(0.24	)	$	0.16		$	(0.08	)	$	(0.26	)	$	0.13		$	(0.13	)
Weighted average number of common shares outstanding
Basic	52,150,106			—			52,150,106			49,861,735			—			49,861,735
Diluted	52,150,106			—			52,150,106			49,861,735			—			49,861,735

The effect of the restatement on the previously filed consolidated statement of cash flows for the six months ended December 31, 2017 is as follows:



	Six months ended December 31, 2017
($ in thousands)	As Previously Reported			Adjustments			As Restated

OPERATING ACTIVITIES:
Net loss	$	(12,729	)	$	6,364		$	(6,365	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Non-cash stock-based compensation	1,356			(372		)	984
(Gain) loss on disposal of property and equipment	(83		)	3			(80		)
Non-cash interest and amortization of debt discount	86			8			94
Bad debt expense	291			91			382
Provision for inventory reserve	—			1,091			1,091
Depreciation and amortization	3,476			(198		)	3,278
Excess tax benefits	67			—			67
Deferred income taxes, net	8,537			(8,696		)	(159		)
Recognition of deferred gain from sale-leaseback transactions	(93		)	93			—
Changes in operating assets and liabilities:
Accounts receivable	(5,290		)	(42		)	(5,332		)
Finance receivables, net	7,958			(626		)	7,332
Inventory, net	(5,822		)	(1,793		)	(7,615		)
Prepaid expenses and other current assets	(606		)	604			(2		)
Accounts payable and accrued expenses	6,950			754			7,704
Deferred revenue	—			570			570
Income taxes payable	40			(80		)	(40		)
Net cash provided by operating activities	4,138			(2,229		)	1,909

INVESTING ACTIVITIES:
Purchase of property and equipment, including rentals	(1,767		)	33			(1,734		)
Proceeds from sale of property and equipment	157			—			157
Cash paid for acquisitions, net of cash acquired	(65,181		)	—			(65,181		)
Net cash used in investing activities	(66,791		)	33			(66,758		)

FINANCING ACTIVITIES:
Proceeds from collateralized borrowing from the transfer of finance receivables	—			1,075			1,075
Payment of debt issuance costs	(445		)	—			(445		)
Proceeds from issuance of long-term debt	25,100			—			25,100
Proceeds from revolving credit facility	10,000			—			10,000
Issuance of common stock in public offering, net	39,888			—			39,888
Repayment of line of credit	(7,111		)	—			(7,111		)
Repayment of capital lease obligations and long-term debt	(2,138		)	1,095			(1,043		)
Net cash provided by financing activities	65,294			2,170			67,464

Net increase in cash and cash equivalents	2,641			(26		)	2,615
Cash and cash equivalents at beginning of year	12,745			—			12,745
Cash and cash equivalents at end of period	$	15,386		$	(26	)	$	15,360

The effect of the restatement on the previously filed consolidated balance sheet as of March 31, 2018 is as follows:



	As of March 31, 2018
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Assets
Current assets:
Cash and cash equivalents	$	17,107		$	(52	)	$	17,055
Accounts receivable	23,166			(3,723		)	19,443
Finance receivables, net	3,904			(1,670		)	2,234
Inventory, net	11,030			893			11,923
Prepaid expenses and other current assets	1,869			(591		)	1,278
Total current assets	57,076			(5,143		)	51,933

Non-current assets:
Finance receivables due after one year	9,679			191			9,870
Other assets	1,214			(800		)	414
Property and equipment, net	12,198			45			12,243
Deferred income taxes	16,911			(16,911		)	—
Intangibles, net	30,119			—			30,119
Goodwill	64,196			(47		)	64,149
Total non-current assets	134,317			(17,522		)	116,795

Total assets	$	191,393		$	(22,665	)	$	168,728

Liabilities, convertible preferred stock and shareholders’ equity
Current liabilities:
Accounts payable	$	29,446		$	128		$	29,574
Accrued expenses	7,961			10,547			18,508
Capital lease obligations and current obligations under long-term debt	4,475			(5		)	4,470
Deferred revenue	441			70			511
Deferred gain from sale-leaseback transactions	198			(198		)	—
Total current liabilities	42,521			10,542			53,063

Long-term liabilities:
Revolving credit facility	10,000			—			10,000
Deferred income taxes	—			96			96
Capital lease obligations and long-term debt, less current portion	22,895			—			22,895
Accrued expenses, less current portion	66			—			66
Total long-term liabilities	32,961			96			33,057

Total liabilities	$	75,482		$	10,638		$	86,120
Commitments and contingencies
Convertible preferred stock:
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $19,443 at March 31, 2018	—			3,138			3,138
Shareholders’ equity:
Preferred stock, no par value, 1,800,000 shares authorized, no shares issued	—			—			—
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $19,443 at March 31, 2018	3,138			(3,138		)	—
Common stock, no par value, 640,000,000 shares authorized, 53,666,718 shares issued and outstanding at March 31, 2018	307,634			2,888			310,522
Accumulated deficit	(194,861		)	(36,191		)	(231,052		)
Total shareholders’ equity	115,911			(36,441		)	79,470
Total liabilities, convertible preferred stock and shareholders’ equity	$	191,393		$	(22,665	)	$	168,728

The effect of the restatement on the previously filed consolidated statement of operations for the three and nine months ended March 31, 2018 is as follows:



	Three months ended March 31, 2018									Nine months ended March 31, 2018
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated			As Previously Reported			Adjustments			As Restated

Revenue:
License and transaction fees	$	27,020		$	(1,639	)	$	25,381		$	69,817		$	(1,525	)	$	68,292
Equipment sales	8,812			(601		)	8,211			24,138			(2,047		)	22,091
Total revenue	35,832			(2,240		)	33,592			93,955			(3,572		)	90,383

Costs of sales:
Cost of services	16,012			25			16,037			43,700			(60		)	43,640
Cost of equipment	7,876			(166		)	7,710			21,909			(364		)	21,545
Total costs of sales	23,888			(141		)	23,747			65,609			(424		)	65,185
Gross profit	11,944			(2,099		)	9,845			28,346			(3,148		)	25,198

Operating expenses:
Selling, general and administrative	9,572			57			9,629			24,647			911			25,558
Integration and acquisition costs	1,747			(70		)	1,677			5,844			(70		)	5,774
Depreciation and amortization	1,125			(20		)	1,105			2,107			(20		)	2,087
Total operating expenses	12,444			(33		)	12,411			32,598			821			33,419
Operating loss	(500		)	(2,066		)	(2,566		)	(4,252		)	(3,969		)	(8,221		)

Other income (expense):
Interest income	134			92			226			465			165			630
Interest expense	(612		)	(251		)	(863		)	(1,315		)	(791		)	(2,106		)
Total other expense, net	(478		)	(159		)	(637		)	(850		)	(626		)	(1,476		)

Loss before income taxes	(978		)	(2,225		)	(3,203		)	(5,102		)	(4,595		)	(9,697		)
Benefit (provision) for income taxes	2,138			(2,158		)	(20		)	(6,467		)	6,576			109

Net income (loss)	1,160			(4,383		)	(3,223		)	(11,569		)	1,981			(9,588		)
Preferred dividends	(334		)	—			(334		)	(668		)	—			(668		)
Net income (loss) applicable to common shares	$	826		$	(4,383	)	$	(3,557	)	$	(12,237	)	$	1,981		$	(10,256	)
Net income (loss) per common share
Basic	$	0.02		$	(0.09	)	$	(0.07	)	$	(0.24	)	$	0.04		$	(0.20	)
Diluted	$	0.02		$	(0.09	)	$	(0.07	)	$	(0.24	)	$	0.04		$	(0.20	)
Weighted average number of common shares outstanding
Basic	53,637,085			—			53,637,085			51,101,813			—			51,101,813
Diluted	54,234,566			(597,481		)	53,637,085			51,101,813			—			51,101,813

The effect of the restatement on the previously filed consolidated statement of cash flows for the nine months ended March 31, 2018 is as follows:



	Nine months ended March 31, 2018
($ in thousands)	As Previously Reported			Adjustments			As Restated

OPERATING ACTIVITIES:
Net loss	$	(11,569	)	$	1,981		$	(9,588	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Non-cash stock-based compensation	2,005			(581		)	1,424
(Gain) loss on disposal of property and equipment	(112		)	13			(99		)
Non-cash interest and amortization of debt discount	100			18			118
Bad debt expense	506			4			510
Provision for inventory reserve	—			1,361			1,361
Depreciation and amortization	5,858			(272		)	5,586
Excess tax benefits	67			—			67
Deferred income taxes, net	6,400			(6,554		)	(154		)
Recognition of deferred gain from sale-leaseback transactions	(143		)	143			—
Changes in operating assets and liabilities:
Accounts receivable	(12,972		)	3,008			(9,964		)
Finance receivables, net	11,114			(2,912		)	8,202
Sale of finance receivables	—			2,051			2,051
Inventory, net	(5,624		)	(2,153		)	(7,777		)
Prepaid expenses and other current assets	(564		)	919			355
Accounts payable and accrued expenses	13,808			1,447			15,255
Deferred revenue	(185		)	536			351
Income taxes payable	—			(30		)	(30		)
Net cash provided by operating activities	8,689			(1,021		)	7,668

INVESTING ACTIVITIES:
Purchase of property and equipment, including rentals	(3,005		)	(133		)	(3,138		)
Proceeds from sale of property and equipment	252			—			252
Cash paid for acquisitions, net of cash acquired	(65,181		)	—			(65,181		)
Net cash used in investing activities	(67,934		)	(133		)	(68,067		)

FINANCING ACTIVITIES:
Proceeds from collateralized borrowing from the transfer of finance receivables	—			1,075			1,075
Cash used in retirement of common stock	(156		)	—			(156		)
Proceeds from exercise of common stock options	109			—			109
Payment of debt issuance costs	(445		)	—			(445		)
Proceeds from issuance of long-term debt	25,100			—			25,100
Proceeds from revolving credit facility	12,500			—			12,500
Repayment of revolving credit facility	(2,500		)	—			(2,500		)
Issuance of common stock in public offering, net	39,888			—			39,888
Repayment of line of credit	(7,111		)	—			(7,111		)
Repayment of capital lease obligations and long-term debt	(3,778		)	27			(3,751		)
Net cash provided by financing activities	63,607			1,102			64,709

Net increase in cash and cash equivalents	4,362			(52		)	4,310
Cash and cash equivalents at beginning of year	12,745			—			12,745
Cash and cash equivalents at end of period	$	17,107		$	(52	)	$	17,055

The effect of the restatement on the previously filed consolidated balance sheet as of September 30, 2016 is as follows:



	As of September 30, 2016
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Assets
Current assets:
Cash and cash equivalents	$	18,198		$	—		$	18,198
Accounts receivable	5,840			(233		)	5,607
Finance receivables, net	3,349			—			3,349
Inventory, net	4,264			(338		)	3,926
Prepaid expenses and other current assets	1,439			(87		)	1,352
Deferred income taxes	2,271			(2,271		)	—
Total current assets	35,361			(2,929		)	32,432

Non-current assets:
Finance receivables due after one year	3,962			—			3,962
Other assets	163			—			163
Property and equipment, net	9,570			2,866			12,436
Deferred income taxes	25,568			(25,568		)	—
Intangibles, net	754			—			754
Goodwill	11,703			—			11,703
Total non-current assets	51,720			(22,702		)	29,018

Total assets	$	87,081		$	(25,631	)	$	61,450

Liabilities, convertible preferred stock and shareholders’ equity
Current liabilities:
Accounts payable	$	8,693		$	17		$	8,710
Accrued expenses	3,912			4,223			8,135
Line of credit, net	7,258			13			7,271
Capital lease obligations and current obligations under long-term debt	834			4,118			4,952
Income taxes payable	8			7			15
Deferred revenue	—			94			94
Deferred gain from sale-leaseback transactions	685			(685		)	—
Total current liabilities	21,390			7,787			29,177

Long-term liabilities:
Deferred income tax	—			47			47
Capital lease obligations and long-term debt, less current portion	1,517			—			1,517
Accrued expenses, less current portion	11			—			11
Total long-term liabilities	1,528			47			1,575

Total liabilities	$	22,918		$	7,834		$	30,752
Commitments and contingencies
Convertible preferred stock:
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $18,442 at September 30, 2016	—			3,138			3,138
Shareholders’ equity:
Preferred stock, no par value, 1,800,000 shares authorized, no shares issued	—			—			—
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $18,442 at September 30, 2016	3,138			(3,138		)	—
Common stock, no par value, 640,000,000 shares authorized, 40,295,425 shares issued and outstanding at September 30, 2016	244,996			—			244,996
Accumulated deficit	(183,971		)	(33,465		)	(217,436		)
Total shareholders’ equity	64,163			(36,603		)	27,560
Total liabilities, convertible preferred stock and shareholders’ equity	$	87,081		$	(25,631	)	$	61,450

The effect of the restatement on the previously filed consolidated statement of operations for the three months ended September 30, 2016 is as follows:



	Three months ended September 30, 2016
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Revenue:
License and transaction fees	$	16,365		$	(2	)	$	16,363
Equipment sales	5,223			(17		)	5,206
Total revenue	21,588			(19		)	21,569

Costs of sales:
Cost of services	11,243			(144		)	11,099
Cost of equipment	4,178			(5		)	4,173
Total costs of sales	15,421			(149		)	15,272
Gross profit	6,167			130			6,297

Operating expenses:
Selling, general and administrative	6,909			563			7,472
Depreciation and amortization	208			—			208
Total operating expenses	7,117			563			7,680
Operating loss	(950		)	(433		)	(1,383		)

Other income (expense):
Interest income	73			—			73
Interest expense	(212		)	(335		)	(547		)
Change in fair value of warrant liabilities	(1,490		)	—			(1,490		)
Total other expense, net	(1,629		)	(335		)	(1,964		)

Loss before income taxes	(2,579		)	(768		)	(3,347		)
Benefit (provision) for income taxes	115			(138		)	(23		)

Net loss	(2,464		)	(906		)	(3,370		)
Preferred dividends	(334		)	—			(334		)
Net loss applicable to common shares	$	(2,798	)	$	(906	)	$	(3,704	)
Net loss per common share
Basic	$	(0.07	)	$	(0.03	)	$	(0.10	)
Diluted	$	(0.07	)	$	(0.03	)	$	(0.10	)
Weighted average number of common shares outstanding
Basic	38,488,005			—			38,488,005
Diluted	38,488,005			—			38,488,005

The effect of the restatement on the previously filed consolidated statement of cash flows for the three months ended September 30, 2016 is as follows:



	Three months ended September 30, 2016
($ in thousands)	As Previously Reported			Adjustments			As Restated

OPERATING ACTIVITIES:
Net loss	$	(2,464	)	$	(906	)	$	(3,370	)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash stock-based compensation	211			—			211
Non-cash interest and amortization of debt discount	105			34			139
Bad debt expense	97			102			199
Provision for inventory reserve	—			248			248
Depreciation and amortization	1,301			302			1,603
Change in fair value of warrant liabilities	1,490			—			1,490
Deferred income taxes, net	(115		)	130			15
Recognition of deferred gain from sale-leaseback transactions	(215		)	215			—
Changes in operating assets and liabilities:
Accounts receivable	(1,038		)	35			(1,003		)
Finance receivables, net	(5		)	—			(5		)
Inventory, net	(2,223		)	(490		)	(2,713		)
Prepaid expenses and other current assets	(224		)	100			(124		)
Accounts payable and accrued expenses	(3,175		)	632			(2,543		)
Deferred revenue	—			(59		)	(59		)
Income taxes payable	(10		)	7			(3		)
Net cash used in operating activities	(6,265		)	350			(5,915		)

INVESTING ACTIVITIES:
Purchase of property and equipment, including rentals	(810		)	187			(623		)
Net cash used in investing activities	(810		)	187			(623		)

FINANCING ACTIVITIES:
Cash used in retirement of common stock	(31		)	—			(31		)
Proceeds from exercise of common stock warrants	6,193			—			6,193
Repayment of capital lease obligations and long-term debt	(161		)	(537		)	(698		)
Net cash provided by financing activities	6,001			(537		)	5,464

Net decrease in cash and cash equivalents	(1,074		)	—			(1,074		)
Cash and cash equivalents at beginning of year	19,272			—			19,272
Cash and cash equivalents at end of period	$	18,198		$	—		$	18,198

The effect of the restatement on the previously filed consolidated balance sheet as of December 31, 2016 is as follows:



	As of December 31, 2016
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Assets
Current assets:
Cash and cash equivalents	$	18,034		$	—		$	18,034
Accounts receivable	6,796			96			6,892
Finance receivables, net	1,442			—			1,442
Inventory, net	4,786			(348		)	4,438
Prepaid expenses and other current assets	1,764			(87		)	1,677
Deferred income taxes	2,271			(2,271		)	—
Total current assets	35,093			(2,610		)	32,483

Non-current assets:
Finance receivables due after one year	3,956			—			3,956
Other assets	145			(1		)	144
Property and equipment, net	9,433			2,561			11,994
Deferred income taxes	25,568			(25,568		)	—
Intangibles, net	711			—			711
Goodwill	11,492			—			11,492
Total non-current assets	51,305			(23,008		)	28,297

Total assets	$	86,398		$	(25,618	)	$	60,780

Liabilities, convertible preferred stock and shareholders’ equity
Current liabilities:
Accounts payable	$	9,090		$	19		$	9,109
Accrued expenses	2,912			4,629			7,541
Line of credit, net	7,078			13			7,091
Capital lease obligations and current obligations under long-term debt	766			3,565			4,331
Income taxes payable	6			15			21
Deferred revenue	—			478			478
Deferred gain from sale-leaseback transactions	470			(470		)	—
Total current liabilities	20,322			8,249			28,571

Long-term liabilities:
Deferred income taxes	—			63			63
Capital lease obligations and long-term debt, less current portion	1,394			—			1,394
Accrued expenses, less current portion	52			—			52
Total long-term liabilities	1,446			63			1,509

Total liabilities	$	21,768		$	8,312		$	30,080
Commitments and contingencies
Convertible preferred stock:
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $18,442 at December 31, 2016	—			3,138			3,138
Shareholders’ equity:
Preferred stock, no par value, 1,800,000 shares authorized, no shares issued	—			—			—
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $18,442 at December 31, 2016	3,138			(3,138		)	—
Common stock, no par value, 640,000,000 shares authorized, 40,321,941 shares issued and outstanding at December 31, 2016	245,230			—			245,230
Accumulated deficit	(183,738		)	(33,930		)	(217,668		)
Total shareholders’ equity	64,630			(37,068		)	27,562
Total liabilities, convertible preferred stock and shareholders’ equity	$	86,398		$	(25,618	)	$	60,780

The effect of the restatement on the previously filed consolidated statement of operations for the three and six months ended December 31, 2016 is as follows:



	Three months ended December 31, 2016									Six months ended December 31, 2016
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated			As Previously Reported			Adjustments			As Restated

Revenue:
License and transaction fees	$	16,639		$	(2	)	$	16,637		$	33,004		$	(4	)	$	33,000
Equipment sales	5,117			33			5,150			10,340			16			10,356
Total revenue	21,756			31			21,787			43,344			12			43,356

Costs of sales:
Cost of services	11,389			(143		)	11,246			22,632			(287		)	22,345
Cost of equipment	4,033			63			4,096			8,211			58			8,269
Total costs of sales	15,422			(80		)	15,342			30,843			(229		)	30,614
Gross profit	6,334			111			6,445			12,501			241			12,742

Operating expenses:
Selling, general and administrative	5,793			236			6,029			12,702			799			13,501
Depreciation and amortization	307			—			307			515			—			515
Total operating expenses	6,100			236			6,336			13,217			799			14,016
Operating income (loss)	234			(125		)	109			(716		)	(558		)	(1,274		)

Other income (expense):
Interest income	200			—			200			273			—			273
Interest expense	(201		)	(317		)	(518		)	(413		)	(652		)	(1,065		)
Change in fair value of warrant liabilities	—			—			—			(1,490		)	—			(1,490		)
Total other expense, net	(1		)	(317		)	(318		)	(1,630		)	(652		)	(2,282		)

Income (loss) before income taxes	233			(442		)	(209		)	(2,346		)	(1,210		)	(3,556		)
(Provision) benefit for income taxes	—			(23		)	(23		)	115			(161		)	(46		)

Net income (loss)	233			(465		)	(232		)	(2,231		)	(1,371		)	(3,602		)
Preferred dividends	—			—			—			(334		)	—			(334		)
Net income (loss) applicable to common shares	$	233		$	(465	)	$	(232	)	$	(2,565	)	$	(1,371	)	$	(3,936	)
Net income (loss) per common share
Basic	$	0.01		$	(0.02	)	$	(0.01	)	$	(0.07	)	$	(0.03	)	$	(0.10	)
Diluted	$	0.01		$	(0.02	)	$	(0.01	)	$	(0.07	)	$	(0.03	)	$	(0.10	)
Weighted average number of common shares outstanding
Basic	40,308,934			—			40,308,934			39,398,469			—			39,398,469
Diluted	40,730,712			(421,778		)	40,308,934			39,398,469			—			39,398,469

The effect of the restatement on the previously filed consolidated statement of cash flows for the six months ended December 31, 2016 is as follows:



	Six months ended December 31, 2016
($ in thousands)	As Previously Reported			Adjustments			As Restated

OPERATING ACTIVITIES:
Net loss	$	(2,231	)	$	(1,371	)	$	(3,602	)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash stock-based compensation	445			—			445
(Gain) loss on disposal of property and equipment	(31		)	(3		)	(34		)
Non-cash interest and amortization of debt discount	26			39			65
Bad debt expense	450			(119		)	331
Provision for inventory reserve	—			480			480
Depreciation and amortization	2,564			600			3,164
Change in fair value of warrant liabilities	1,490			—			1,490
Deferred income taxes, net	(115		)	145			30
Recognition of deferred gain from sale-leaseback transactions	(430		)	430			—
Changes in operating assets and liabilities:
Accounts receivable	(2,347		)	(71		)	(2,418		)
Finance receivables, net	2,119			—			2,119
Inventory, net	(2,689		)	(714		)	(3,403		)
Prepaid expenses and other current assets	(542		)	100			(442		)
Accounts payable and accrued expenses	(3,840		)	1,140			(2,700		)
Deferred revenue	—			326			326
Income taxes payable	(12		)	15			3
Net cash used in operating activities	(5,143		)	997			(4,146		)

INVESTING ACTIVITIES:
Purchase of property and equipment, including rentals	(1,944		)	192			(1,752		)
Proceeds from sale of property and equipment	61			—			61
Net cash used in investing activities	(1,883		)	192			(1,691		)

FINANCING ACTIVITIES:
Cash used in retirement of common stock	(31		)	—			(31		)
Proceeds from exercise of common stock warrants	6,193			—			6,193
Repayment of line of credit	—			(106		)	(106		)
Repayment of capital lease obligations and long-term debt	(374		)	(1,083		)	(1,457		)
Net cash provided by financing activities	5,788			(1,189		)	4,599

Net decrease in cash and cash equivalents	(1,238		)	—			(1,238		)
Cash and cash equivalents at beginning of year	19,272			—			19,272
Cash and cash equivalents at end of period	$	18,034		$	—		$	18,034

The effect of the restatement on the previously filed consolidated balance sheet as of March 31, 2017 is as follows:



	As of March 31, 2017
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Assets
Current assets:
Cash and cash equivalents	$	17,780		$	—		$	17,780
Accounts receivable	6,734			(72		)	6,662
Finance receivables, net	2,057			92			2,149
Inventory, net	4,147			(470		)	3,677
Prepaid expenses and other current assets	1,628			(34		)	1,594
Deferred income taxes	2,271			(2,271		)	—
Total current assets	34,617			(2,755		)	31,862

Non-current assets:
Finance receivables due after one year	7,548			—			7,548
Other assets	137			94			231
Property and equipment, net	9,173			2,168			11,341
Deferred income taxes	25,359			(25,359		)	—
Intangibles, net	666			—			666
Goodwill	11,492			—			11,492
Total non-current assets	54,375			(23,097		)	31,278

Total assets	$	88,992		$	(25,852	)	$	63,140

Liabilities, convertible preferred stock and shareholders’ equity
Current liabilities:
Accounts payable	$	11,529		$	290		$	11,819
Accrued expenses	3,111			5,681			8,792
Line of credit, net	7,021			13			7,034
Capital lease obligations and current obligations under long-term debt	786			2,999			3,785
Income taxes payable	—			23			23
Deferred revenue	—			310			310
Deferred gain from sale-leaseback transactions	255			(255		)	—
Total current liabilities	22,702			9,061			31,763

Long-term liabilities:
Deferred income taxes	—			78			78
Capital lease obligations and long-term debt, less current portion	1,239			—			1,239
Accrued expenses, less current portion	52			—			52
Total long-term liabilities	1,291			78			1,369

Total liabilities	$	23,993		$	9,139		$	33,132
Commitments and contingencies
Convertible preferred stock:
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $18,775 at March 31, 2017	—			3,138			3,138
Shareholders’ equity:
Preferred stock, no par value, 1,800,000 shares authorized, no shares issued	—			—			—
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $18,775 at March 31, 2017	3,138			(3,138		)	—
Common stock, no par value, 640,000,000 shares authorized, 40,327,675 shares issued and outstanding at March 31, 2017	245,463			—			245,463
Accumulated deficit	(183,602		)	(34,991		)	(218,593		)
Total shareholders’ equity	64,999			(38,129		)	26,870
Total liabilities, convertible preferred stock and shareholders’ equity	$	88,992		$	(25,852	)	$	63,140

The effect of the restatement on the previously filed consolidated statement of operations for the three and nine months ended March 31, 2017 is as follows:



	Three months ended March 31, 2017									Nine months ended March 31, 2017
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated			As Previously Reported			Adjustments			As Restated

Revenue:
License and transaction fees	$	17,459		$	(1	)	$	17,458		$	50,463		$	(5	)	$	50,458
Equipment sales	9,001			(158		)	8,843			19,341			(142		)	19,199
Total revenue	26,460			(159		)	26,301			69,804			(147		)	69,657

Costs of sales:
Cost of services	11,876			(143		)	11,733			34,508			(430		)	34,078
Cost of equipment	7,959			267			8,226			16,170			325			16,495
Total costs of sales	19,835			124			19,959			50,678			(105		)	50,573
Gross profit	6,625			(283		)	6,342			19,126			(42		)	19,084

Operating expenses:
Selling, general and administrative	5,947			595			6,542			18,649			1,394			20,043
Depreciation and amortization	259			—			259			774			—			774
Total operating expenses	6,206			595			6,801			19,423			1,394			20,817
Operating income (loss)	419			(878		)	(459		)	(297		)	(1,436		)	(1,733		)

Other income (expense):
Interest income	114			—			114			387			—			387
Interest expense	(188		)	(369		)	(557		)	(601		)	(1,021		)	(1,622		)
Change in fair value of warrant liabilities	—			—			—			(1,490		)	—			(1,490		)
Total other expense, net	(74		)	(369		)	(443		)	(1,704		)	(1,021		)	(2,725		)

Income (loss) before income taxes	345			(1,247		)	(902		)	(2,001		)	(2,457		)	(4,458		)
(Provision) benefit for income taxes	(209		)	186			(23		)	(94		)	25			(69		)

Net income (loss)	136			(1,061		)	(925		)	(2,095		)	(2,432		)	(4,527		)
Preferred dividends	(334		)	—			(334		)	(668		)	—			(668		)
Net loss applicable to common shares	$	(198	)	$	(1,061	)	$	(1,259	)	$	(2,763	)	$	(2,432	)	$	(5,195	)
Net loss per common share
Basic	$	—		$	(0.03	)	$	(0.03	)	$	(0.07	)	$	(0.06	)	$	(0.13	)
Diluted	$	—		$	(0.03	)	$	(0.03	)	$	(0.07	)	$	(0.06	)	$	(0.13	)
Weighted average number of common shares outstanding
Basic	40,327,697			—			40,327,697			39,703,690			—			39,703,690
Diluted	40,327,697			—			40,327,697			39,703,690			—			39,703,690

The effect of the restatement on the previously filed consolidated statement of cash flows for the nine months ended March 31, 2017 is as follows:



	Nine months ended March 31, 2017
($ in thousands)	As Previously Reported			Adjustments			As Restated

OPERATING ACTIVITIES:
Net loss	$	(2,095	)	$	(2,432	)	$	(4,527	)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash stock-based compensation	678			—			678
(Gain) loss on disposal of property and equipment	(59		)	—			(59		)
Non-cash interest and amortization of debt discount	98			—			98
Bad debt expense	577			(117		)	460
Provision for inventory reserve	—			804			804
Depreciation and amortization	3,774			905			4,679
Change in fair value of warrant liabilities	1,490			—			1,490
Deferred income taxes, net	94			(48		)	46
Recognition of deferred gain from sale-leaseback transactions	(646		)	646			—
Changes in operating assets and liabilities:
Accounts receivable	(2,388		)	72			(2,316		)
Finance receivables, net	(2,113		)	(67		)	(2,180		)
Inventory, net	(2,042		)	(915		)	(2,957		)
Prepaid expenses and other current assets	(406		)	(48		)	(454		)
Accounts payable and accrued expenses	(1,239		)	2,501			1,262
Deferred revenue	—			157			157
Income taxes payable	(18		)	22			4
Net cash used in operating activities	(4,295		)	1,480			(2,815		)

INVESTING ACTIVITIES:
Purchase of property and equipment, including rentals	(2,818		)	282			(2,536		)
Proceeds from sale of property and equipment	105			—			105
Net cash used in investing activities	(2,713		)	282			(2,431		)

FINANCING ACTIVITIES:
Cash used in retirement of common stock	(31		)	—			(31		)
Proceeds from exercise of common stock warrants	6,193			—			6,193
Payment of debt issuance costs	(90		)	—			(90		)
Repayment of line of credit	—			(106		)	(106		)
Repayment of capital lease obligations and long-term debt	(556		)	(1,656		)	(2,212		)
Net cash provided by financing activities	5,516			(1,762		)	3,754

Net decrease in cash and cash equivalents	(1,492		)	—			(1,492		)
Cash and cash equivalents at beginning of year	19,272			—			19,272
Cash and cash equivalents at end of period	$	17,780		$	—		$	17,780

The effect of the restatement on the previously filed consolidated statement of operations for the three months ended June 30, 2017 is as follows:



	Three months ended June 30, 2017
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Revenue:
License and transaction fees	$	18,679		$	(3	)	$	18,676
Equipment sales	15,610			(2,507		)	13,103
Total revenue	34,289			(2,510		)	31,779

Costs of sales:
Cost of services	12,545			(103		)	12,442
Cost of equipment	14,224			(864		)	13,360
Total costs of sales	26,769			(967		)	25,802
Gross profit	7,520			(1,543		)	5,977

Operating expenses:
Selling, general and administrative	6,844			1,290			8,134
Depreciation and amortization	244			—			244
Total operating expenses	7,088			1,290			8,378
Operating income (loss)	432			(2,833		)	(2,401		)

Other income (expense):
Interest income	95			—			95
Interest expense	(291		)	(315		)	(606		)
Total other expense, net	(196		)	(315		)	(511		)

Income (loss) before income taxes	236			(3,148		)	(2,912		)
Benefit (provision) for income taxes	7			(33		)	(26		)

Net income (loss)	243			(3,181		)	(2,938		)
Preferred dividends	—			—			—
Net income (loss) applicable to common shares	$	243		$	(3,181	)	$	(2,938	)
Net income (loss) per common share
Basic	$	0.01		$	(0.08	)	$	(0.07	)
Diluted	$	0.01		$	(0.08	)	$	(0.07	)
Weighted average number of common shares outstanding
Basic	40,331,993			—			40,331,993
Diluted	40,772,482			(440,489		)	40,331,993

ACCOUNTING POLICIES	12 Months Ended
ACCOUNTING POLICIES	Jun. 30, 2019
Accounting Policies [Abstract]
ACCOUNTING POLICIES	ACCOUNTING POLICIES CONSOLIDATION The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform with current year presentation. USE OF ESTIMATES The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) 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 AND CASH EQUIVALENTS Cash equivalents represent all highly liquid investments with original maturities of three months or less from time of purchase. Cash equivalents are comprised of money market funds. The Company maintains its cash in bank deposit accounts where accounts may exceed federally insured limits at times. It deems this credit risk not to be significant as cash is held at prominent financial institutions in the US. 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 probable incurred 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, and 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 (“FASB”) 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 net of allowance of credit losses when management determines that it is probable a loss has been incurred. Finance receivables are charged off against the allowance for credit losses when management determines that the finance receivables are uncollectible 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. The company's inventories are valued at the lower of cost or net realizable value, generally using a weighted-average cost method. The Company establishes allowances for obsolescence of inventory based upon quality considerations and assumptions about future demand and market conditions. PROPERTY AND EQUIPMENT, NET Property and equipment are recorded at either cost or, in the instance of an acquisition, the estimated fair value on the date of the acquisition, and are depreciated on a 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 and are included in “Depreciation and amortization" in the Consolidated Statements of Operations. Additions and improvements that extend the estimated lives of the assets are capitalized, while expenditures for repairs and maintenance are expensed as incurred. GOODWILL AND INTANGIBLE ASSETS The Company’s 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. We test goodwill for impairment by comparing the fair value of our reporting unit to its carrying value using a market approach. An impairment charge is recognized for the amount by which, if any, the carrying value exceeds the reporting unit’s fair value. However, the loss recognized cannot exceed the reporting unit’s goodwill balance. The Company has selected April 1 as its annual test date. The Company has concluded there has been no impairment of goodwill during the years ended June 30, 2019, 2018, or 2017. The Company's intangible assets include trademarks, non-compete agreements, brand, developed technology, customer relationships and tradenames and were acquired in a purchase business combination. The Company carries these intangibles at cost, less accumulated amortization. Amortization is recorded on a straight-line basis over the estimated useful lives of the respective assets, which span between three and eighteen years, and are included in “Depreciation and amortization" in the Consolidated Statements of Operations. There were no indefinite-lived intangible assets at June 30, 2019 or 2018. 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, 2019 and 2018. FAIR VALUE OF FINANCIAL INSTRUMENTS 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. CONCENTRATION OF RISKS Concentration of revenue with customers subject the Company to operating risks. Approximately 17%, 16% and 25% of the Company’s revenue for the years ended June 30, 2019, 2018 and 2017, respectively, were concentrated with one customer. The Company’s customers are principally located in the United States. REVENUE RECOGNITION On July 1, 2018, the Company adopted Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers using the modified retrospective transition method to all open contracts with customers that were not completed as of June 30, 2018. Results for reporting periods beginning after July 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic revenue recognition methodology under ASC 605. Revenue Recognition Under ASC 605 (Periods Prior to July 1, 2018) Revenue from the sale of QuickStart lease of equipment is recognized on the terms of free-on-board shipping point. 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. 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 utilizes its best estimate of selling price when calculating the revenue to be recorded under these leases. The QuickStart contracts qualify for sales type lease accounting. At lease inception, the Company recognizes revenue and creates a finance receivable in an amount that represents the present value of minimum lease payments. Accordingly, a portion of the lease payments are recognized as interest income. At the end of the lease period, the customer would have the option to purchase the device at its residual value. Any customer payments received in advance and prior to the Company satisfying any performance obligations are recorded as deferred revenue and amortized as revenue is recognized. Equipment Rental The Company offers its customers a rental program for its hardware devices, the JumpStart program (“JumpStart”). JumpStart terms are typically 36 months and are cancellable with 30 to 60 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. Costs for the JumpStart revenue, which consist of depreciation expense on the JumpStart equipment, are included in cost of services in the Consolidated Statements of Operations. Equipment utilized by the JumpStart program is included in property and equipment, net on the Consolidated Balance Sheets. Revenue Recognition Under ASC 606 (Periods Subsequent to July 1, 2018) The new revenue recognition guidance provides a single model to determine when and how revenue is recognized. The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of control of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company recognizes revenue using a five-step model resulting in revenue being recognized as performance obligations within a contract have been satisfied. The steps within that model include: (i) identifying the existence of a contract with a customer; (ii) identifying the performance obligations within the contract; (iii) determining the contract’s transaction price; (iv) allocating the transaction price to the contract’s performance obligations; and, (v) recognizing revenue as the contract’s performance obligations are satisfied. Judgment is required to apply the principles-based, five-step model for revenue recognition. Management is required to make certain estimates and assumptions about the Company’s contracts with its customers, including, among others, the nature and extent of its performance obligations, its transaction price amounts and any allocations thereof, the events which constitute satisfaction of its performance obligations, and when control of any promised goods or services is transferred to its customers. The new standard also requires certain incremental costs incurred to obtain or fulfill a contract to be deferred and amortized on a systematic basis consistent with the transfer of goods or services to the customer. The Company provides an end-to-end payment solution which integrates hardware, software, and payment processing in the self-service retail market. The Company has contractual agreements with customers that set forth the general terms and conditions of the relationship, including pricing of goods and services, payment terms and contract duration. Revenue is recognized when the obligation under the terms of the Company’s contract with its customer is satisfied and is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. The foundation of the Company’s business model is to act as the Merchant of Record for its sellers. We provide cashless vending payment services in exchange for monthly service fees, in addition to collecting usage-based consideration for completed transactions. The contracts we enter into with third-party suppliers provide us with the right to access and direct their services when processing a transaction. The Company combines the services provided by third-party suppliers to enable customers to accept cashless payment transactions, indicating that it controls all inputs in directing their use to create the combined service. Additionally, USAT sells cashless payment devices (e.g., e-Ports, Seed), which are either directly sold or leased through the Company's QuickStart or JumpStart programs. Cashless vending services represent a single performance obligation as the combination of the services provided gives the customer the ability to accept cashless payments. The Company’s customers are contracting for integrated cashless services in connection with purchasing or leasing unattended point-of-sale devices. The activities when combined together are so integral to the customer’s ability to derive benefit from the service, that the activities are effectively inputs to a single promise to the customer. Certain services are distinct, but are not accounted for separately as the rights are coterminous, they are transferred concurrently and the outcome is the same as accounting for the services as individual performance obligations. The single performance obligation is determined to be a stand-ready obligation to process payments whenever a consumer intends to make a purchase at a point-of-sale device. As the Company is unable to predict the timing and quantity of transactions to be processed, the assessment of the nature of the performance obligation is focused on each time increment rather than the underlying activity. Therefore, cashless vending services are viewed to comprise a series of distinct days of service that are substantially the same and have the same pattern of transfer to the customer. As a result, the promise to stand ready is accounted for as a single performance obligation. Revenue related to cashless vending services is recognized over the period in which services are provided, with usage-based revenue recognized as transactions occur. Consideration for this service includes fixed fees for standing ready to process transactions, and generally also includes usage-based fees, priced as a percentage of transaction value and/or a specified fee per transaction processed. The total transaction price of usage-based services is determined to be variable consideration as it is based on unknown quantities of services to be performed over the contract term. The underlying variability is satisfied each day the service is performed and provided to the customer. Clients are billed for cashless vending services on a monthly basis and for transaction processing as transactions occur. Payment is due based on the Company’s standard payment terms which is typically within 30 to 60 days of invoice issuance. Equipment sales represent a separate performance obligation, the majority of which is satisfied at a point in time through outright sales or sales-type leases (ASC 840) when the equipment is delivered to the customer. Revenues related to JumpStart equipment are recognized over time as the customer obtains the right to use the equipment through an operating leases. Clients are billed for equipment sales on a monthly basis, with payment due based on the Company’s standard payment terms which is typically within 30 to 60 days of invoice issuance. USAT will occasionally offer volume discounts, rebates or credits on certain contracts, which is considered variable consideration. USAT uses either the most-likely or estimated value method to estimate the amount of the consideration, based on what the Company expects to better predict the amount of consideration to which it will be entitled to on a contract-by-contract basis. The Company will qualitatively assess if the variable consideration should be constrained to prevent possible significant reversal of revenue, as applicable. The Company assesses the goods and/or services promised in each customer contract and separately identifies a performance obligation for each promise to transfer to the customer a distinct good or service. The Company then allocates the transaction price to each performance obligation in the contract using relative standalone selling prices. The Company determines standalone selling prices based on the price at which a good or service is sold separately. If the standalone selling price is not observable through historic data, the Company estimates the standalone selling price by considering all reasonably available information, including market data, trends, as well as other company- or customer-specific factors. The Company recognizes fees charged to our customers primarily on a gross basis as transaction revenue when we are the principal in respect of completing a payment transaction. As a principal to the transaction, when we are the Merchant of Record, we control the service of completing payments for our customers through the payment ecosystem. The fees paid to payment processors and other financial institutions are recognized as transaction expense. For certain transactions in which we act in the capacity as an agent, these transactions are recorded on a net basis. These are transactions in which we are not the Merchant of Record, and the customer is entering into a separate arrangement with a third party payment processor for the fulfillment of the payment service. Warranties and Returns The Company offers standard warranties that provide the customer with assurance that its equipment will function in accordance with contract specifications. The Company's standard warranties are not sold separately, but are included with each customer purchase. Warranties are not considered separate performance obligations and, therefore, are estimated and recorded at the time of sale. The Company estimates an allowance for equipment returns at the date of sale on a monthly basis. The estimate of expected returns is calculated in the same way as other variable consideration. The expected value method is generally used to predict the amount of consideration to which the Company will be entitled. Accounts Receivable and Contract Liabilities A contract with a customer creates legal rights and obligations. As the Company satisfies performance obligations under customer contracts, a right to unconditional consideration is recorded as an account receivable. Contract liabilities represent consideration received from customers in excess of revenues recognized (i.e., deferred revenue). Contract liabilities are classified as current or noncurrent based on the nature of the underlying contractual rights and obligations. Contract Costs The Company incurs costs to obtain contracts with customers, primarily in the form of commissions to sales employees. The Company recognizes as an asset the incremental costs of obtaining a contract with a customer if it expects to recover these costs. The Company currently does not incur material costs to fulfill its obligations under a contract once it is obtained but before transferring goods or services to the customer. Contract costs are amortized on a systematic basis consistent with the transfer to the customer of the goods or services to which the asset relates. A straight-line or proportional amortization method is used depending upon which method best depicts the pattern of transfer of the goods or services to the customer. The Company’s contracts frequently contain performance obligations satisfied at a point in time and overtime. In these instances, the Company amortizes the contract costs proportionally with the timing and pattern of revenue recognition. Amortization of costs to obtain a contract are classified as selling, general and administrative expense. In addition, these contract costs are evaluated for impairment by comparing, on a pooled basis, the expected future net cash flows from underlying customer relationships to the carrying amount of the capitalized contract costs. In order to determine the appropriate amortization period for contract costs, the Company considers a number of factors, including expected early terminations, estimated terms of customer relationships, the useful lives of technology USAT uses to provide goods and services to its customers, whether future contract renewals are expected and if there is any incremental commission to be paid on a contract renewal. The Company amortizes these assets over the expected period of benefit. Costs to obtain a contract with an expected period of benefit of one year or less are expensed when incurred. 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 $0.7 million, $0.7 million, and $0.4 million in the fiscal years ended June 30, 2019, 2018, and 2017, respectively. RESEARCH AND DEVELOPMENT EXPENSES Research and development expenses are expensed as incurred and primarily consist of personnel, contractors and product development costs. Research and development expenses, which are included in selling, general and administrative expenses in the Consolidated Statements of Operations, were approximately $4.6 million, $1.3 million and $1.4 million, for the fiscal years ended June 30, 2019, 2018, and 2017, 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. SOFTWARE DEVELOPMENT COSTS We capitalize qualifying internally-developed software development costs incurred during the application development stage, as long as it is probable the project will be completed, and the software will be used to perform the function intended. Capitalization of such costs ceases once the project is substantially complete and ready for its intended use. Capitalized software development costs are included in “Property and equipment, net” on our consolidated balance sheets and are amortized on a straight-line basis over their expected useful lives 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. These costs are recorded in selling, general and administrative expenses. LOSS CONTINGENCIES 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 statements 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 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 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 to be recognized. The Company recognizes interest and penalties, if any, related to uncertain tax positions in selling, general and administrative expenses. Interest and penalties related to uncertain tax positions incurred during the fiscal years ended June 30, 2019, 2018 and 2017 were immaterial. The Company files income tax returns in the United States federal jurisdiction and various state jurisdictions. The tax years ended June 30, 2016 through June 30, 2019 remain open to examination by taxing jurisdictions to which the Company is subject. While the statute of limitations has expired for years prior to the year ended June 30, 2016, changes in reported losses for those years could be made examination by tax authorities to the extent that operating loss carryforwards from those prior years impact upon taxable income in current years. As of June 30, 2019, 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, 2019, 2018 and 2017 no effect for common stock equivalents was considered in the calculation of diluted earnings (loss) per share because their effect was anti-dilutive. RECENT ACCOUNTING PRONOUNCEMENTS Accounting pronouncements adopted In January 2017, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update No. 2017-04, Intangibles – Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment ("ASU 2017-04"), which eliminates Step 2 from the goodwill impairment test. Under ASU 2017-04, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. ASU 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. We early adopted ASU 2017-04 for impairment tests to be performed on testing dates after July 1, 2017, which did not impact our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting, which modifies the accounting for certain aspects of share-based payments to employees. The new guidance requires excess tax benefits and tax deficiencies to be recorded in the income statement when stock awards vest or are settled. In addition, cash flows related to excess tax benefits are to be separately classified as an operating activity apart from other income tax cash flows. The standard also allows the Company to repurchase more of an employee’s vested shares for tax withholding purposes without triggering liability accounting, and clarifies that all cash payments made to tax authorities on an employee’s behalf for withheld shares should be presented as a financing activity on the statement of cash flows. The Company adopted this standard as of July 1, 2017. The primary impact of adoption was the recognition of excess tax benefits in the Company's provision for income taxes which is applied prospectively starting July 1, 2017 in accordance with the guidance. Adoption of the new standard resulted in the recognition of $31 thousand of excess tax benefits in the Company's provision for income taxes for the year ended June 30, 2018. Through June 30, 2017 excess tax benefits were reflected as a reduction of deferred tax assets via reducing actual operating loss carryforwards because such benefits had not reduced income taxes payable. Under the new standard the treatment of excess tax benefits changed and the cumulative excess tax benefits as of June 30, 2017 amounting to $67 thousand were credited to accumulated deficit. The adoption of ASU No. 2016-09 did not impact our statement of cash flows for the fiscal year ended June 30, 2018. In March 2018, the FASB issued ASU No. 2018-05, "Income Taxes (Topic 740), Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118." The standard adds guidance to ASC 740, Income Taxes, that contain SEC guidance related to SAB 118. The standard is effective upon issuance. Refer to Note 15 for further information regarding the impact of the standard. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805), Clarifying the Definition of a Business.” ASU 2017-01 provides guidance in ascertaining whether a collection of assets and activities is considered a business. The Company adopted this standard as of July 1, 2018, and its adoption did not have a material effect on the Company’s consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, “Compensation - Stock Compensation (Topic 718), Scope of Modification Accounting.” The standard provides guidance about which changes to the terms or conditions of a share-based payment award require modification accounting, which may result in a different fair value for the award. The Company adopted this standard as of July 1, 2018, and it will be applied prospectively to awards modified on or after the adoption date. Its adoption did not have a material effect on the Company's consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments.” The new guidance makes eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. The Company adopted this standard as of July 1, 2018 on a retrospective basis, and its adoption did not have a material effect on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606) (“the New Standard”). The New Standard 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 Company adopted the New Standard on July 1, 2018, using the modified retrospective method applied to those contracts which were not completed as of July 1, 2018. Results for reporting periods beginning after July 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic revenue recognition methodology under ASC 605. Refer to Note 5 for further discussion. In July 2015, the FASB issued ASU 2015-11, “Inventory,” which simplifies the measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. The Company early adopted this guidance during fiscal year 2017, and its adoption did not have a material effect on the Company's consolidated financial statements. In September 2015, the FASB issued ASU 2015-16, “Simplifying the Accounting for Measurement Period Adjustments”, which requires that the acquirer in a business combination recognize adjustments to provisional purchase accounting amounts that are identified during the measurement period in the reporting period in which the purchase accounting adjustment is determined. The Company adopted this standard during the first quarter of fiscal 2017, and its adoption did not have a material effect on the Company's consolidated financial statements. In November 2015, the FASB issued ASU 2015‑17, "Balance Sheet Classification of Deferred Taxes", 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 Company early adopted this guidance for fiscal year 2017 on a prospective basis. As a result of the adoption, $2.3 million of deferred tax assets were reclassified from current to noncurrent assets as of June 30, 2016. Accounting pronouncements to be adopted 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 February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," which will require, among other items, lessees to recognize a right of use asset and a related lease liability for most leases on the balance sheet. Qualitative and quantitative disclosures will be enhanced to better understand the amount, timing and uncertainty of cash flows arising from leases. The Company adopted this new guidance on July 1, 2019, using the optional modified retrospective transition method. The Company expects the adoption to result in gross up on its consolidated balance sheets from the recognition of assets and liabilities arising out of operating leases. The Company will recognize assets for the right to use the underlying leased property during the lease term and will recognize liabilities for the corresponding financial obligation to make lease payments to the lessor. The Company plans to elect the transition package of practical expedients permitted within the standard, which eliminates the requirements to reassess prior conclusions about lease identification, lease classification, and initial direct costs. The Company is substantially complete with the evaluation of the impact on the consolidated financial statements of adopting the new lease standard and does not anticipate a material impact on the consolidated statements of operations, shareholders’ equity, and cash flows or to retained earnings. Additionally, the Company does not anticipate the adoption of the standard will impact any debt covenants or result in significant changes to the internal processes, including the internal control over financial reporting. The Company’s operating leases primarily comprise of office facilities, with the most significant leases relating to corporate headquarters in Malvern, Pennsylvania and an office in San Francisco, California. The Company is in the process of finalizing changes to its systems and processes in conjunction with its review of lease agreements and will disclose the actual impact of adopting ASU 2016-02 in its interim report on Form 10-Q for the quarter ended September 30, 2019. In July 2018, the FASB issued ASU No. 2018-09, “Codification Improvements”. These amendments provide clarifications and corrections to certain ASC subtopics including “Compensation - Stock Compensation - Income Taxes” (Topic 718-740), “Business Combinations - Income Taxes” (Topic 805-740) and “Fair Value Measurement - Overall” (Topic 820-10). The majority of the amendments in ASU 2018-09 will be effective in annual periods beginning after December 15, 2018. The Company is currently evaluating and assessing the impact this guidance will have on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326).” The new guidance requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This pronouncement will be effective for fiscal years beginning after December 15, 2019. Early adoption of the guidance is permitted for fiscal years beginning after December 15, 2018.The Company is currently evaluating and assessing the impact this guidance will have on its consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, “Compensation - Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting.” The standard simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under the ASU, most of the guidance on such payments to nonemployees would be aligned with the requirements for share-based payments granted to employees. The changes take effect for public companies for fiscal years starting after December 15, 2018, including interim periods within that fiscal year. The Company expects that the adoption of this ASU would not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, “Intangibles—Goodwill and Other (Topic 350): Internal-Use Software.” This standard aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, which means that it will be effective for us in the first quarter of our fiscal year beginning July 1, 2020. The Company is currently evaluating and assessing the impact this guidance will have on its consolidated financial statements.

ACQUISITION

12 Months Ended

Jun. 30, 2019

Business Combinations [Abstract]

ACQUISITION

CANTALOUPE SYSTEMS, INC.

On November 9, 2017, the Company acquired all of the outstanding equity interests of Cantaloupe Systems, Inc. ("Cantaloupe") pursuant to the Merger Agreement, for $88.2 million in aggregate consideration. Cantaloupe is a premier provider of cloud and mobile solutions for vending, micro markets, and office coffee services.

The acquisition expanded the Company’s existing platform to become an end-to-end enterprise platform integrating Cantaloupe’s Seed Cloud which provides cloud and mobile solutions for dynamic route scheduling, automated pre-kitting, responsive merchandising, inventory management, warehouse and accounting management, as well as cashless vending. In addition to new technology and services, due to Cantaloupe’s existing customer base, the acquisition expands the Company’s footprint into new global markets.

The fair value of the purchase price consideration consisted of the following:



($ in thousands)
Cash consideration, net of cash acquired	$	65,181
USAT shares issued as stock consideration (As Restated)	23,279
Post-closing adjustment for working capital	(253		)
Total consideration (As Restated)	$	88,207

The Company financed a portion of the purchase price with proceeds from a $25.0 million term loan (“Term Loan”) and $10.0 million of borrowings under a line of credit (“Revolving Credit Facility”), provided by JPMorgan Chase Bank, N.A., for an aggregate principal amount of $35.0 million. Refer to Note 12 for additional details.

The acquisition of Cantaloupe was accounted for as a business combination using the acquisition method. Under the acquisition method of accounting, the assets acquired and liabilities assumed in the transaction were recorded at the date of acquisition at their respective fair values using assumptions that are subject to change. The Company has finalized its valuation of certain assets and liabilities recorded in connection with this transaction as of June 30, 2018.

The following table summarizes the fair value of total consideration transferred to the holders of all the outstanding equity interests of Cantaloupe at the acquisition date of November 9, 2017:



($ in thousands)	November 9, 2017 (As Restated)
Accounts receivable	$	2,921
Finance receivables	1,480
Inventory	282
Prepaid expense and other current assets	646
Finance receivables due after one year	3,603
Other assets	50
Property and equipment	2,234
Intangible assets	30,800
Total assets acquired	42,016
Accounts payable	(1,591		)
Accrued expenses	(2,401		)
Deferred revenue	(518		)
Capital lease obligations and current obligations under long-term debt	(666		)
Capital lease obligations and long-term debt, less current portion	(1,134		)
Deferred income tax liabilities	(157		)
Total identifiable net assets	35,549
Goodwill	52,658
Total fair value	$	88,207

Amounts allocated to intangible assets included $18.9 million related to customer relationships, $10.3 million related to developed technology, and $1.6 million related to trade names. The fair value of the acquired customer relationships was determined using the excess earnings method. The fair value of both the acquired developed technology and the acquired trade names was determined using the relief from royalty method. The estimated useful life of the acquired intangible assets ranged from 6 to 18 years, with a weighted average estimated useful life of 13 years. The related amortization will be recorded on a straight-line basis.

Goodwill of $52.7 million arising from the acquisition includes the expected synergies between Cantaloupe and the Company, the value of the employee workforce, and intangible assets that do not qualify for separate recognition at the time of acquisition. The goodwill, which is not deductible for income tax purposes, was assigned to the Company’s only reporting unit.

The amount of Cantaloupe revenue included in the Company’s Consolidated Statement of Operations for the year ended June 30, 2018 was $19.2 million. The amount of Cantaloupe earnings included in the Company’s Consolidated Statement of Operations for the year ended June 30, 2018 was $0.2 million.

Supplemental disclosure of pro forma information

The following supplemental unaudited pro forma information presents the combined results of USAT and Cantaloupe as if the acquisition of Cantaloupe occurred on July 1, 2016. This supplemental pro forma information has been prepared for comparative purposes and does not purport to be indicative of what would have occurred had the acquisition been made on July 1, 2016, nor are they indicative of any future results.

The pro forma results include adjustments for the purchase accounting impact of the Cantaloupe acquisition (including, but not limited to, amortization associated with the acquired intangible assets, and the interest expense and amortization of debt issuance costs associated with the Term Loan and Revolving Credit Facility that were used to finance a portion of the purchase price, along with the related tax impacts) and the alignment of accounting policies. Other material non-recurring adjustments are reflected in the pro forma and described below:



	Year ended June 30,
($ in thousands, except per share data)	2018			2017 (As Restated)

Revenue	$	140,575		$	121,373
Net loss attributable to USAT	(7,256		)	(13,828		)
Net loss attributable to USAT common shares	$	(7,924	)	$	(14,496	)
Net loss per share:
Basic	$	(0.15	)	$	(0.27	)
Diluted	$	(0.15	)	$	(0.27	)
Weighted average number of common shares outstanding:
Basic	53,717,133			52,849,217
Diluted	53,717,133			52,849,217

The supplemental unaudited pro forma earnings for the year ended June 30, 2018 were adjusted to exclude $7.1 million of integration and acquisition costs. Conversely, the supplemental unaudited pro forma earnings for the year ended June 30, 2017 were adjusted to include $7.1 million of integration and acquisition costs.

REVENUE

12 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

REVENUE

Adoption of ASC 606, Revenue from Contracts with Customers

In applying the new revenue guidance, the Company evaluated its population of open contracts with customers on July 1, 2018. The effect of adoption of this new guidance on the Consolidated Balance Sheet as of July 1, 2018 was to increase prepaid expenses and other current assets, other assets, and deferred revenue, with an offsetting decrease in the opening accumulated deficit, as follows:



	June 30, 2018					July 1, 2018
($ in thousands)	As Reported			Adjustment		Revised

ASSETS
Prepaid expenses and other current assets	$	929		$	251	$	1,180
Other assets	720			1,254		1,974
LIABILITIES
Deferred revenue	511			1,127		1,638
SHAREHOLDERS' EQUITY
Accumulated deficit	(232,748		)	376		(232,372		)

The impact of the adoption of ASC 606 by financial statement line item with in the Consolidated Balance Sheet as of June 30, 2019 and Consolidated Statement of Operations for the year ended June 30, 2019 is as follows:



	June 30, 2019						June 30, 2019
($ in thousands)	As Reported			Adjustment			Under Legacy Guidance

BALANCE SHEET
Prepaid expenses and other current assets	$	1,558		$	(301	)	$	1,257
Other assets	2,099			(1,506		)	593
Deferred revenue	1,539			(929		)	610
Accumulated deficit	(264,400		)	(878		)	(265,278		)
STATEMENT OF OPERATIONS
License and transaction fees	123,554			(198		)	123,356
Selling, general and administrative	47,068			303			47,371
Net loss	(32,028		)	(500		)	(32,528		)

The adoption of ASC 606 had no effect on the cash flows from operating activities, investing activities or financing activities included in the Consolidated Statement of Cash Flows for the year ended June 30, 2019.

Disaggregated Revenue

Based on similar operational and economic characteristics, the Company’s revenue from contracts with customers is disaggregated by License and Transaction Fees and Equipment Sales, as reported in the Company’s Consolidated Statements of Operations. The Company believes these revenue categories depict how the nature, amount, timing, and uncertainty of its revenue and cash flows are influenced by economic factors, and also represents the level at which management makes operating decisions and assesses financial performance.

Transaction Price Allocated to Future Performance Obligations

In determining the transaction price allocated to unsatisfied performance obligations, we did not include non-recurring charges. Further, we applied the practical expedient to not consider arrangements with an original expected duration of one year or less, which are primarily month to month rental agreements. The majority of contracts are considered to have a contractual term of between 36 and 60 months based on implied and explicit termination penalties. These amounts will be converted into revenue in future periods as work is performed, primarily based on the services provided or at delivery and acceptance of products, depending on the applicable accounting method.

The following table reflects the estimated fees to be recognized in the future related to performance obligations that are unsatisfied at the end of the period:



($ in thousands)	As of June 30, 2019

2020	$	12,093
2021	10,271
2022	8,643
2023	5,990
2024 and thereafter	1,942
Total	$	38,939

Contract Liabilities

The Company's contract liability (i.e., deferred revenue) balances are as follows:



	Year ended June 30,
($ in thousands)	2019

Deferred revenue, beginning of the period	$	511
Plus: adjustment for adoption of ASC 606	1,127
Deferred revenue, beginning of the period, as adjusted	1,638
Deferred revenue, end of the period	1,539
Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period	320

The change in the contract liabilities year-over-year is primarily the result of timing difference between the Company's satisfaction of a performance obligation and payment from the customer.

Contract Costs

At June 30, 2019, the Company had net capitalized costs to obtain contracts of $0.3 million included in prepaid expenses and other current assets and $1.5 million included in other noncurrent assets on the Consolidated Balance Sheet. None of these capitalized contract costs were impaired. During the year ended June 30, 2019, amortization of capitalized contract costs was $0.3 million.

RESTRUCTURING/INTEGRATION COSTS

12 Months Ended

Jun. 30, 2019

Restructuring and Related Activities [Abstract]

RESTRUCTURING/INTEGRATION COSTS

Subsequent to the Cantaloupe acquisition, the Company initiated workforce reductions to integrate the Cantaloupe business. For the year ended June 30, 2018, workforce reduction costs totaled $2.1 million. The Company has included these charges under “Integration and acquisition costs” within the Consolidated Statements of Operations, with the remaining outstanding balance included within “Accrued expenses” on the Consolidated Balance Sheet. Liabilities for workforce reduction costs will generally be paid during the next twelve months.

The following table summarizes the Company's workforce reduction activity for the years ended June 30, 2019 and June 30, 2018:



($ in thousands)	Workforce reduction
Balance at July 1, 2017	$	—
Plus: additions	2,122
Less: cash payments	(1,102		)
Balance at June 30, 2018	1,020
Plus: additions	266
Less: cash payments	(1,111		)
Balance at June 30, 2019	$	175

LOSS PER SHARE CALCULATION

12 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

LOSS PER SHARE CALCULATION

Basic loss per share is computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted earnings per share, applicable only to years ended with reported income, is computed by dividing net income by the weighted average number of common shares outstanding during the period plus the dilutive effect of outstanding stock options and restricted stock-based awards using the treasury stock method. The calculation of basic and diluted loss per share is presented below:



	Year ended June 30,
($ in thousands, except per share data)	2019			2018			2017 (As Restated)

Numerator for basic and diluted loss per share
Net loss	$	(32,028	)	$	(11,284	)	$	(7,465	)
Preferred dividends	(668		)	(668		)	(668		)
Net loss available to common shareholders	$	(32,696	)	$	(11,952	)	$	(8,133	)

Denominator for basic loss per share - Weighted average shares outstanding	60,061,243			51,840,518			39,860,335
Effect of dilutive potential common shares	—			—			—
Denominator for diluted loss per share - Adjusted weighted average shares outstanding	60,061,243			51,840,518			39,860,335

Basic loss per share	$	(0.54	)	$	(0.23	)	$	(0.20	)
Diluted loss per share	$	(0.54	)	$	(0.23	)	$	(0.20	)

Antidilutive shares excluded from the calculation of diluted loss per share were 1,297,073, 1,134,845, and 1,138,108 for the years ended June 30, 2019, 2018 and 2017, respectively.

FINANCE RECEIVABLES

12 Months Ended

Jun. 30, 2019

Receivables [Abstract]

FINANCE RECEIVABLES

The Company’s finance receivables consist of financed devices under the QuickStart program and Cantaloupe devices contractually associated with the Seed platform. Predominately all of the Company’s finance receivables agreements are classified as non-cancellable sixty month sales-type leases. As of June 30, 2019 and 2018, finance receivables consist of the following:



	As of June 30,
($ in thousands)	2019		2018

Finance receivables, net	$	6,260	$	4,603
Finance receivables due after one year, net	11,596		13,246
Total finance receivables, net of allowance of $606 and $12, respectively	$	17,856	$	17,849

The Company routinely evaluates outstanding finance receivables for impairment based on past due balances or accounts otherwise determined to be at a higher risk of loss. The Company reserves for its nonperforming finance receivables. A finance receivable is classified as nonperforming if it is considered probable the Company will be unable to collect all contractual interest and principal payments as scheduled.

At June 30, 2019 and 2018, credit quality indicators consisted of the following:



	As of June 30,
($ in thousands)	2019		2018

Performing	$	17,856	$	17,849
Nonperforming	606		12
Gross finance receivables	$	18,462	$	17,861

An aged analysis of the Company's finance receivables as of June 30, 2019 and 2018 is as follows:



	As of June 30,
($ in thousands)	2019		2018

Current	$	17,506	$	17,609
30 days and under past due	200		56
31 - 60 days past due	43		7
61 - 90 days past due	145		56
Greater than 90 days past due	568		133
Total finance receivables	$	18,462	$	17,861

Finance receivables due for each of the fiscal years following June 30, 2019 are as follows:



($ in thousands)

2020	$	6,584
2021	4,041
2022	3,833
2023	2,635
2024	1,133
Thereafter	236
Total	$	18,462

Sale of Finance Receivables

The Company accounts for transfers of finance receivables as sales when it has surrendered control over the related assets. Whether control has been relinquished requires, among other things, an evaluation of relevant legal considerations and an assessment of the nature and extent of the Company’s continuing involvement with the assets transferred. During fiscal year 2018, the Company transferred certain groups of finance receivables with no recourse to third-party financing entities for approximately $2.3 million. The transfers were accounted for as sales with derecognition of the associated finance receivables. Gains and losses stemming from such transfers are immaterial.

Transfers of finance receivables that do not qualify for sale accounting are reported as collateralized borrowings. Accordingly, the related assets remain on the Company’s balance sheet and continue to be reported and accounted for as if the transfer had not occurred. Cash proceeds from these transfers are reported as financing obligations (debt), with attributable interest expense recognized over the life of the related transactions. During December 2017, the Company transferred certain groups of finance receivables to third-party financing entities for approximately $1.1 million. Such transfers are subject to recourse provisions for the first 3 months after the date of transfer, after which the recourse provisions expire. Accordingly, the related finance receivables remained on the balance sheet at December 31, 2017 and the cash proceeds of approximately $1.1 million were reported as financing obligations at December 31, 2017. During March 2018, the recourse provisions expired resulting in the finance receivables and financing obligations being derecognized.

PROPERTY AND EQUIPMENT, NET

12 Months Ended

Jun. 30, 2019

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT, NET

Property and equipment consisted of the following:



		As of June 30, 2019
($ in thousands)	Useful Lives	Cost		Accumulated Depreciation			Net
Computer equipment and software	3-7 years	$	6,745	$	(5,840	)	$	905
Internal-use software	3-5 years	3,126		(716		)	2,410
Property and equipment used for rental program	5 years	36,285		(30,978		)	5,307
Furniture and equipment	3-7 years	1,543		(1,116		)	427
Leasehold improvements	(1)	286		(155		)	131
		$	47,985	$	(38,805	)	$	9,180



		As of June 30, 2018
($ in thousands)	Useful Lives	Cost		Accumulated Depreciation			Net
Computer equipment and software	3-7 years	$	7,367	$	(5,353	)	$	2,014
Internal-use software	3-5 years	2,657		(492		)	2,165
Property and equipment used for rental program	5 years	33,941		(27,420		)	6,521
Furniture and equipment	3-7 years	1,327		(899		)	428
Leasehold improvements	(1)	269		(124		)	145
		$	45,561	$	(34,288	)	$	11,273

___________________________________


(1)	Lesser of lease term or estimated useful life

Total depreciation expense for the years ended June 30, 2019, 2018, and 2017 was $4.9 million, $5.7 million and $5.7 million, respectively. Depreciation expense allocated within our cost of sales for rental equipment was $3.6 million, $4.6 million, and $4.9 million for the years ended June 30, 2019, 2018, and 2017, respectively.

The total for gross assets under capital leases was approximately $2.4 million and $3.1 million and accumulated amortization totaled $2.4 million and $2.7 million as of June 30, 2019 and 2018, respectively. Capital lease amortization of $0.1 million, $0.4 million and $0.4 million is included in depreciation expense for the years ended June 30, 2019, 2018, and 2017, respectively.

GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Jun. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

Goodwill and intangible asset balances consisted of the following:



	As of June 30, 2019							Amortization Period
($ in thousands)	Gross		Accumulated Amortization			Net		Amortization Period

Intangible assets:
Non-compete agreements	$	2	$	(2	)	$	—	2 years
Brand and tradenames	1,695		(470		)	1,225		3 - 7 years
Developed technology	10,939		(3,266		)	7,673		5 - 6 years
Customer relationships	19,049		(1,776		)	17,273		10 - 18 years
Total intangible assets	$	31,685	$	(5,514	)	$	26,171

Goodwill	64,149		—			64,149		Indefinite

Total intangible assets and goodwill	$	95,834	$	(5,514	)	$	90,320



	As of June 30, 2018							Amortization Period
($ in thousands)	Gross		Accumulated Amortization			Net		Amortization Period

Intangible assets:
Non-compete agreements	$	2	$	(2	)	$	—	2 years
Brand and tradenames	1,695		(226		)	1,469		3 - 7 years
Developed technology	10,939		(1,421		)	9,518		5 - 6 years
Customer relationships	19,049		(711		)	18,338		10 - 18 years
Total intangible assets	$	31,685	$	(2,360	)	$	29,325
Goodwill	64,149		—			64,149		Indefinite
Total intangible assets and goodwill	$	95,834	$	(2,360	)	$	93,474

During the year ended June 30, 2018, the Company recognized $52.7 million in goodwill, net of a $0.3 million post-closing working capital adjustment, and $30.8 million in newly acquired intangibles in association with the Cantaloupe acquisition as referenced in Note 4. There were no impairments of goodwill during the years ended June 30, 2018 and 2019.

For the years ended June 30, 2019, 2018 and 2017, amortization expense related to intangible assets was $3.2 million, $2.1 million and $0.2 million, respectively. The weighted-average remaining useful life of the finite-lived intangible assets was 12.3 years as of June 30, 2019, of which the weighted-average remaining useful life for the brand and tradenames was 5.3 years, for the developed technology was 4.3 years, and for the customer relationships was 16.3 years.

Estimated annual amortization expense for intangible assets is as follows (in thousands):



2020	$	3,138
2021	3,074
2022	3,010
2023	3,010
2024	1,909
Thereafter	12,030
	$	26,171

ACCRUED EXPENSES

12 Months Ended

Jun. 30, 2019

Accrued Liabilities [Abstract]

ACCRUED EXPENSES

Accrued expenses consisted of the following as of June 30, 2019 and 2018:



	As of June 30,
($ in thousands)	2019			2018

Accrued sales tax	$	16,559		$	12,686
Accrued compensation and related sales commissions	2,071			3,100
Accrued professional fees	2,847			936
Accrued taxes and filing fees	209			160
Accrued other	1,672			2,475
Total accrued expenses	23,358			19,357
Less: accrued expenses, current	(23,258		)	(19,291		)
Accrued expenses, noncurrent	$	100		$	66

DEBT AND OTHER FINANCING ARRANGEMENTS

12 Months Ended

Jun. 30, 2019

Line of Credit Facility [Abstract]

DEBT AND OTHER FINANCING ARRANGEMENTS

The Company's debt and other financing arrangements as of June 30, 2019 and 2018 consisted of the following:



	As of June 30,
($ in thousands)	2019			2018

Revolving Credit Facility	$	10,000		$	10,000
Term Loan	1,458			23,333
Other, including capital lease obligations	1,323			2,689
Less: unamortized issuance costs	(8		)	(256		)
Total	12,773			35,766
Less: debt and other financing arrangements, current	(12,497		)	(34,639		)
Debt and other financing arrangements, noncurrent	$	276		$	1,127

Details of interest expense presented on the Consolidated Statements of Operations are as follows:



	Year ended June 30,
($ in thousands)	2019		2018		2017 (As Restated)
Heritage Line of Credit	$	—	$	203	$	547
Revolving Credit Facility	658		449		—
Term Loan	1,232		892		—
Other interest expense	1,102		1,561		1,681
Total interest expense	$	2,992	$	3,105	$	2,228

Avidbank 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 revolving line of credit facility (the “Avidbank Line of Credit”) of up to $7.0 million and a three-year term loan to the Company in the principal amount of $3.0 million (the “Avidbank Term Loan”). The Amendment increased the amount available under the Avidbank Line of Credit to $7.5 million less the amount then outstanding under the Avidbank Term Loan. 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. The Avidbank 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 in 2015. The Avidbank 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 Avidbank Term Loan. The Avidbank 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.

Heritage Line of Credit

In March 2016, the Company entered into a Loan and Security Agreement with Heritage Bank of Commerce (“Heritage Bank”), providing for a secured 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 Reserve’s Prime plus 2.25%. The Heritage Line of Credit and the Company’s obligations under the Heritage Loan Documents were secured by substantially all of the Company’s assets, including its intellectual property. The Company utilized approximately $7.1 million under the Heritage Line of Credit to satisfy the existing Avidbank Line of Credit and related Avidbank Term Loan.

During March 2017, the Company entered into the third amendment with Heritage Bank that extended the maturity date of the Line of Credit from March 29, 2017 to September 30, 2018.

On November 9, 2017, the Company paid all amounts due on the Loan and Security Agreement with Heritage Bank of Commerce. The Company recorded a charge of $0.1 million to write-off any remaining debt issuance costs related to the Line of Credit to interest expense in the quarter ending December 31, 2017. Pursuant to such payment, all commitments of Heritage Bank of Commerce were terminated, and the Heritage Loan and Security Agreement was terminated.

Revolving Credit Facility and Term Loan

On November 9, 2017, in connection with the acquisition of Cantaloupe, the Company entered into a five year credit agreement among the Company, as the borrower, its subsidiaries, as guarantors, and JPMorgan Chase Bank, N.A., as the lender and administrative agent for the lender (the “Lender”), pursuant to which the Lender (i) made a $25 million Term Loan to the Company and (ii) provided the Company with the Revolving Credit Facility under which the Company may borrow revolving credit loans in an aggregate principal amount not to exceed $12.5 million at any time.

The proceeds of the Term Loan and borrowings under the Revolving Credit Facility, in an aggregate principal amount equal to $35.0 million, were used by the Company to finance a portion of the purchase price for the acquisition of Cantaloupe ($27.8 million) and repay existing indebtedness to Heritage Bank of Commerce ($7.2 million). Future borrowings under the Revolving Credit Facility may be used by the Company for working capital and general corporate purposes of the Company and its subsidiaries. The principal amount of the Term Loan is payable quarterly beginning on December 31, 2017, and the Term Loan, all advances under the Revolving Credit Facility, and all other obligations must be paid in full at maturity, on November 9, 2022.

Loans under the five year credit agreement bear interest, at the Company's option, by reference to a base rate or a rate based on LIBOR, in either case, plus an applicable margin determined quarterly based on the Company's Total Leverage Ratio as of the last day of each fiscal quarter. The applicable interest rate on the loans for the year ended June 30, 2019 is LIBOR plus 4%. The Term Loan and Revolving Credit Facility contain customary representations and warranties and affirmative and negative covenants and require the Company to maintain a minimum quarterly Total Leverage Ratio and Fixed Charge Coverage Ratio. The Revolving Credit Facility and Term Loan also require the Company to furnish various financial information on a quarterly and annual basis.

Due to the Company's delay in filing its periodic reports, between September 28, 2018, and September 30, 2019, the parties entered into various agreements to provide for the extension of the delivery of the Company’s financial information required under the terms of the credit agreement. In connection with these agreements, the Company incurred extension fees due to the lender, totaling $0.2 million, between September 28, 2018 and June 30, 2019. Additionally, during the quarter ended March 31, 2019 the Company prepaid $20.0 million of the balance outstanding under the Term Loan, $0.6 million of which was applied to the installment payment due on March 31, 2019 and the remainder of which was applied to the last repayment installment obligations due under the Term Loan. On September 30, 2019, the Company prepaid the remaining principal balance of the term loan of $1.5 million and agreed to permanently reduce the amount available under the revolving credit facility to $10 million which represented the outstanding balance on the date thereof. The agreements also provide that the Company cannot incur additional borrowings on the Revolving Credit Facility without the Lender‘s prior consent. Further, the parties agreed that the applicable interest rate on the Revolving Credit Facility and Term Loan will be LIBOR plus 4% until such time as the Company delivers certain financial information required under the credit agreement.

On March 29, 2019 and September 18, 2019 the Company obtained waivers of an event of default under the credit agreement. The event of default is the result of the Company having maintained deposits on account with a financial institution in excess of the amounts permitted by the credit agreement and not having transferred certain deposit accounts to the Lender. The waiver requires the Company to remedy the event of default by March 31, 2020 by which time the Company expects to be in compliance with the underlying covenant. As of June 30, 2019 the Company was not in compliance with the fixed charge coverage ratio and the total leverage ratio, which represents an event of default under the credit agreement. The Company has classified all amounts outstanding under the Revolving Credit Facility and Term Loan as current liabilities as of June 30, 2019 and 2018.

Other Long-Term Borrowings

In connection with the acquisition of Cantaloupe, the Company assumed debt of $1.8 million with an outstanding balance of $0.8 million and $1.4 million as of June 30, 2019 and June 30, 2018 respectively. The balance for the period ended June 30, 2019 and 2018 is comprised of; (1) $0.2 million and $0.4 million of promissory notes bearing an interest rate of a 5% and maturing on April 5, 2020 with principal and interest payments due monthly, (2) $0.4 million and $0.7 million of promissory notes bearing an interest rate of 10% and maturing on April 1, 2021 with principal and interest payments due quarterly and (3) $0.1 million and $0.3 million of promissory notes bearing an interest rate of 12% and maturing on December 15, 2019 with principal and interest payments due quarterly.

The Company periodically enters into capital lease obligations to finance certain office and network equipment for use in its daily operations. At June 30, 2019 and 2018, such capital lease obligations were $0.1 million and $0.4 million, respectively. The interest rates on these obligations range from approximately 5.6% to 9.0% and the lease terms range from 2 to 5 years.

The expected maturities associated with the Company’s outstanding debt and other financing arrangements (excluding interest on capital lease obligations) as of June 30, 2019, were as follows:



2020	$	12,515
2021	255
2022	22
2023	4
2024	1
Thereafter	—
	$	12,797

FAIR VALUE OF FINANCIAL INSTRUMENTS	12 Months Ended
FAIR VALUE OF FINANCIAL INSTRUMENTS	Jun. 30, 2019
Fair Value Disclosures [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	FAIR VALUE OF FINANCIAL INSTRUMENTS The Company’s financial instruments are carried at cost which approximates fair value. The Company classifies its financial instruments, which are primarily cash equivalents, accounts receivable, accounts payable and accrued expenses as Level 1 investments of the fair value hierarchy because these instruments are carried at cost which approximates fair value due to the short-term maturity of these instruments. The Company’s obligations under its long-term debt agreements are carried at amortized cost, which approximates their fair value. The fair value of the Company’s obligations under its long-term debt agreements are considered Level 2 investments of the fair value hierarchy because these instruments have interest rates that reset frequently. The Company previously held Level 3 financial instruments consisting of common stock warrants issued by the Company during March 2011, which included 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 was based on valuations performed by an independent third party valuation firm. The fair value was determined using proprietary valuation models considering 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. During the year ended June 30, 2017, all of the aforementioned warrants were exercised, resulting in a $5.2 million reclassification to common stock. During the year ended June 30, 2017, the Company recognized a $1.5 million loss resulting from a change in fair value of the warrant liabilities. If applicable, the Company will recognize transfers into and out of levels within the fair value hierarchy at the end of the reporting period in which the actual event or change in circumstances occurs. During the years ended June 30, 2019, 2018 and 2017, the Company did not have any transfers in or out of Level 1, Level 2, or Level 3 assets or liabilities.

Share-based Payment Arrangement [Abstract]

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

+ References + Details

EQUITY	12 Months Ended
EQUITY	Jun. 30, 2019
Equity [Abstract]
EQUITY	EQUITY Stock Offerings On July 25, 2017, the Company closed its underwritten public offering of 9,583,332 shares of its common stock at a public offering price of $4.50 per share. The foregoing included the full exercise of the underwriters' option to purchase 1,249,999 additional shares from the Company. The gross proceeds to the Company from the offering, before deducting underwriting discounts and commissions and other offering expenses, was approximately $43.1 million. On November 6, 2017, the Company entered into a Merger Agreement with Cantaloupe for cash and 3,423,367 shares of the Company’s stock valued at $23.3 million. Refer to Note 4 for details on the Merger Agreement. On May 25, 2018, the Company and the selling shareholders closed an underwritten public offering of 6,330,449 shares and 553,187 shares, respectively, of the Company's common stock at a public offering price of $11.00 per share. The foregoing included the full exercise of the underwriters' option to purchase 897,866 additional shares from the Company. The gross proceeds to the Company from the offering, before deducting underwriting discounts and commissions and other offering expenses, was approximately $69.6 million. Warrants The Company had 23,978 warrants outstanding as of June 30, 2019 and 2018, all of which were exercisable at $5.00 per share. The warrants have an expiration date of March 29, 2021.

INCOME TAXES

12 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

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 would 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. However, due to the adjustments to earnings and management's reassessment of the underlying factors it uses in estimating future taxable income, and in accordance with the history of losses generated, the Company believes that for the year ended June 30, 2016 and onward, it is more likely than not that its deferred tax assets will not be realized. Accordingly, the Company re-established a full valuation allowance on its net deferred tax assets.

The (provision) benefit for income taxes for the years ended June 30, 2019, 2018 and 2017 is comprised of the following:



	Year ended June 30,
($ in thousands)	2019			2018			2017 (As Restated)
Current:
Federal	$	—		$	(22	)	$	(2	)
State	(269		)	(60		)	(31		)
Total current	(269		)	(82		)	(33		)
Deferred:
Federal	(11		)	183			(58		)
State	18			—			(4		)
Total deferred	7			183			(62		)
Total income tax (provision) benefit	$	(262	)	$	101		$	(95	)

On December 22, 2017, the “Tax Cuts and Jobs Act” (the “Act”) was signed into law. Substantially all of the provisions of the Act are effective for taxable years beginning after December 31, 2017. The Act includes significant changes to the Internal Revenue Code of 1986 (as amended, the “Code”), including amendments which significantly change the taxation of individuals and business entities. The Act contains numerous provisions impacting the Company, the most significant of which reduces the Federal corporate statutory tax rate from 34% to 21%, as well as the elimination of the corporate alternative minimum tax ("AMT") and changing how existing AMT credits can be realized, the creation of a new limitation on deductible interest expense, and the change in rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017.

The various provisions under the Act deemed most relevant to the Company have been considered in preparation of its financial statements as of June 30, 2019 and 2018. To the extent that clarifications or interpretations materialize in the future that would impact upon the effects of the Act incorporated into the June 30, 2019 and 2018 financial statements, those effects will be reflected in the future as or if they materialize.

The benefit for income taxes for the year ended June 30, 2018 was $0.1 million, which included a benefit of $0.1 million due to the ability to recognize additional deferred tax assets related to the Company's alternative minimum tax credit as a result of the Act.

A reconciliation of the (provision) benefit for income taxes for the years ended June 30, 2019, 2018 and 2017 to the indicated (provision) benefit based on income (loss) before (provision) benefit for income taxes at the federal statutory rate of 21.0% for the fiscal year ended June 30, 2019, 27.5% for the fiscal year ended June 30, 2018 and 34% for the fiscal year ended June 30, 2017 is as follows:



	Year ended June 30,
($ in thousands)	2019			2018			2017 (As Restated)
Indicated (provision) benefit at federal statutory rate	$	6,671		$	3,131		$	2,506
Effects of permanent differences
Stock compensation	(140		)	(46		)	—
Warrants	—			—			(507		)
Acquisition related costs	—			(759		)	—
Other permanent differences	(76		)	(157		)	(137		)
State income taxes, net of federal benefit	663			448			174
Income tax credits	—			—			60
Changes related to prior years	—			(7		)	8
Changes in valuation allowances	(7,319		)	(2,544		)	(2,199		)
Other	(61		)	35			—
	$	(262	)	$	101		$	(95	)

At June 30, 2019, the Company had federal and state operating loss carryforwards of approximately $155 million and $194 million, respectively, to offset future taxable income. The timing and extent to which the Company can utilize operating loss carryforwards in any year may be limited because of provisions of the Internal Revenue Code regarding changes in ownership of corporations (i.e. IRS Code Section 382). Federal and state operating loss carryforwards start to expire in 2022 and 2020, respectively.

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:



	As of June 30,
($ in thousands)	2019			2018
Deferred tax assets:
Net operating loss carryforwards	$	38,486		$	35,562
Asset reserves	7,211			4,906
Deferred research and development	1,448			1,084
Stock-based compensation	418			661
Other	983			778
	48,546			42,991
Deferred tax liabilities:
Intangibles	(6,203		)	(6,864		)
Deferred tax assets, net	42,343			36,127
Valuation allowance	(42,414		)	(36,194		)
Deferred tax liabilities, net of allowance	$	(71	)	$	(67	)

As of June 30, 2019, the Company had total unrecognized income tax benefits of $0.2 million related to its nexus in certain state tax jurisdictions. If recognized in future years, $0.2 million of these currently unrecognized income tax benefits would impact the income tax provision and effective tax rate. The Company is actively working with the taxing authorities related to the majority of this uncertain tax position and it is reasonably possible that a majority of the uncertain tax position will be settled within the next 12 months. The following table summarizes the activity related to unrecognized income tax benefits:



	Year ended June 30,
($ in thousands)	2019		2018		2017
Balance at the beginning of the year	$	—	$	—	$	—
Gross increases and decreases related to current period tax positions	180		—		—
Accrued interest and penalties	30		—		—
Balance at the end of the year	$	210	$	—	$	—

The Company records accrued interest as well as penalties related to uncertain tax positions in selling, general and administrative expenses. As of June 30, 2019 the Company had recorded $30 thousand of accrued interest and penalties related to uncertain tax positions on the Consolidated Balance Sheet.

STOCK BASED COMPENSATION PLANS

12 Months Ended

Jun. 30, 2019

STOCK BASED COMPENSATION PLANS

The Company has four active stock based compensation plans at June 30, 2019 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
April 2018	2018 Equity Incentive Plan	Stock & stock options	1,500,000
			4,000,000

As of June 30, 2019, the Company had reserved shares of Common Stock for future issuance for the following:



Common Stock		Reserved Shares
Exercise of Common Stock Warrants		23,978
Conversions of Preferred Stock and cumulative Preferred Stock dividends		104,139
Issuance under 2013 Stock Incentive Plan		—
Issuance under 2014 Stock Option Incentive Plan		101,447
Issuance under 2015 Equity Incentive Plan		342,806
Issuance under 2018 Equity Incentive Plan		1,500,000
Total shares reserved for future issuance		2,072,370

STOCK OPTIONS

Stock options are granted at exercise prices equal to the fair market value of the Company's common stock at the date of grant. The options typically vest over a three-year period and each option, if not exercised or terminated, expires on the seventh anniversary of the grant date.

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

The fair value of options granted during the years ended June 30, 2019, 2018, and 2017 was determined using the following assumptions:



	For the year ended June 30,
	2019	2018	2017

Expected volatility	58.4 - 70.9%	50.2 - 50.9%	49.0 - 50.2%
Expected life (years)	4.2 - 4.5	4.0 - 4.5	3.6 - 4.5
Expected dividends	0.0%	0.0%	0.0%
Risk-free interest rate	2.23-2.91%	1.64 - 1.75%	1.06 - 1.72%

The following tables provide information about outstanding options for the years ended June 30, 2019, 2018, and 2017:



	For the year ended June 30, 2019
	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding options, beginning of period	904,766		$	3.31	4.3	$	9,664
Granted	470,000		$	8.22
Exercised	(11,669	)	$	5.40		$	—
Forfeited	(235,999	)	$	5.70
Expired	—		$	—
Outstanding options, end of period	1,127,098		$	4.84	4.3	$	2,917
Exercisable options, end of period	638,988		$	2.86	3.4	$	2,923



	For the year ended June 30, 2018
	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding options, beginning of period	895,221		$	2.79	5.2	$	2,160
Granted	179,047		$	5.66
Exercised	(93,169	)	$	1.92		$	—
Forfeited	(76,333	)	$	4.30
Expired	—		$	—
Outstanding options, end of period	904,766		$	3.31	4.3	$	9,664
Exercisable options, end of period	632,737		$	2.55	3.9	$	7,242



	For the year ended June 30, 2017
	Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding options, beginning of period	610,141	$	2.07	5.4	$	1,342
Granted	285,080	$	4.30
Exercised	—	$	—		$	—
Forfeited	—	$	—
Expired	—	$	—
Outstanding options, end of period	895,221	$	2.79	5.2	$	2,160
Exercisable options, end of period	483,474	$	2.08	4.5	$	1,511

The weighted average grant date fair value per share for the Company's stock options granted during the years ended June 30, 2019, 2018, and 2017 was $4.15, $2.42, and $1.80, respectively. The total fair value of stock options vested during the years ended June 30, 2019, 2018, and 2017 was $0.2 million, $0.4 million, and $0.3 million, respectively.

STOCK GRANTS

The Company grants shares of common stock to executive officers pursuant to long-term stock incentive plans ("LTIPs") under which executive officers are awarded shares of common stock of the Company in the event that certain targets are achieved. These achievement targets are typically aligned with specified ranges of year-over-year percentage growth in metrics such as total number of connections and adjusted EBITDA. If none of the minimum threshold year-over-year percentage target goals are achieved, the executive officers would not be awarded any shares. 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 LTIPs typically vest as follows: one-third at the time of issuance; one-third on the one-year anniversary of the fiscal year end for which the shares were awarded; and one-third on the two-year anniversary of the fiscal year end for which the shares were awarded.

The Company also grants shares of common stock to members of the board of directors as compensation for their service on the board. These stock awards to directors typically vest over a two to three year period.

A summary of the status of the Company’s nonvested common shares as of June 30, 2019, 2018, and 2017, and changes during the years then ended is presented below:



	Shares		Weighted-Average Grant-Date Fair Value
Nonvested at June 30, 2016	128,498		$	2.97
Granted	135,585		4.25
Vested	(141,527	)	3.33
Nonvested at June 30, 2017	122,556		$	3.96
Granted	275,547		5.31
Vested	(232,267	)	4.92
Nonvested at June 30, 2018	165,836		$	4.85
Granted	40,062		13.90
Vested	(166,927	)	6.01
Nonvested at June 30, 2019	38,971		$	9.19

STOCK BASED COMPENSATION EXPENSE

The Company applies the fair value method to recognize compensation expense for stock-based awards. Using this method, the estimated grant-date fair value of the award is recognized over the requisite service period using the accelerated attribution method. The Company accounts for forfeitures as they occur.

A summary of the Company's stock-based compensation expense recognized during the years ended June 30, 2019, 2018, and 2017 is as follows (in thousands):



	For the year ended June 30,
Award type	2019		2018		2017
Stock options	$	822	$	485	$	264
Stock grants	928		1,309		950
Total stock-based compensation expense	$	1,750	$	1,794	$	1,214

A summary of the Company's unrecognized stock-based compensation expense as of June 30, 2019 is as follows:

PREFERRED STOCK

12 Months Ended

Jun. 30, 2019

Preferred Stock [Abstract]

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, 2019 each share of Series A Preferred Stock is convertible into 0.1988 of a share of Common Stock and each share of Series A Preferred Stock is entitled to 0.1988 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, 2019. 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, 2019 and 2018 is as follows:



($ in thousands)	June 30, 2019		June 30, 2018
For shares outstanding at $10.00 per share	$	4,451	$	4,451
Cumulative unpaid dividends	15,660		14,992
	$	20,111	$	19,443

The Company has determined that its convertible preferred stock is contingently redeemable due to the existence of deemed liquidation provisions contained in its certificate of incorporation, and therefore classifies its convertible preferred stock outside of permanent equity.

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, 2019, 2018 and 2017, no shares of Preferred Stock nor cumulative preferred dividends were converted into shares of common stock.

RETIREMENT PLAN	12 Months Ended
RETIREMENT PLAN	Jun. 30, 2019
Retirement Benefits [Abstract]
RETIREMENT PLAN	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 2019, 2018 and 2017, the Company elected and made 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, 2019, 2018 and 2017 approximated $0.4 million, $0.3 million and $0.2 million, respectively.

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

SALE AND LEASEBACK TRANSACTIONS

The Company has entered into sale leaseback transactions with a third-party finance company, pursuant to which the third-party financing company purchased ePort equipment owned by the Company and used by the Company in its JumpStart Program. These transactions were classified as capital leases.

Upon the completion of the sales, the Company computed a total gain on the sale of its ePort equipment of $2.6 million. In accordance with ASC 840‑40, “Sale Leaseback Transactions”, the Company deferred this gain and amortized it on a straight-line basis over the five-year estimated useful life of the underlying equipment assets.

OTHER LEASES

Other lease commitments, in relation to operational facilities, include:

•

The Company leases approximately 23,138 square feet of space located in Malvern, Pennsylvania for its principal executive office and for general administrative functions, sales activities, product development, and customer support. The Company’s monthly base rent for the premises is approximately $48 thousand, and will increase each year up to a maximum monthly base rent of approximately $53 thousand. The lease expires on November 30, 2023.


•	The Company also leases 11,250 square feet of space in Malvern, Pennsylvania for its product warehousing and shipping under a lease agreement which expires on December 31, 2019. As of June 30, 2019, the Company's rent payment is approximately $6 thousand per month.


•	The Company leases space in Portland, Oregon. The current lease commenced on October 17, 2016, and will terminate on December 31, 2019. The leased premises consist of approximately 5,362 square feet of rentable space. The lease includes monthly rental payments of approximately $11 thousand per month through December 31, 2019.

•

The Company leases approximately 8,400 square feet of space in San Francisco, California, for general office purposes, including technical testing and software development. The current lease commenced on February 1, 2010 and will terminate on January 31, 2020. The Company's monthly base rent for the premises is approximately $45 thousand, and will increase each year up to a maximum monthly base rent of approximately $47 thousand.


•	The Company also leases approximately 7,745 square feet of office space in Matairie, Louisiana. The lease is for a period of 74 months, and commenced on November 12, 2018. The Company's monthly base rent for the premises will initially be approximately $15 thousand, and will increase each year up to a maximum monthly base rent of approximately $16 thousand.

•

The Company leases approximately 16,713 square feet of office space in Denver, Colorado. The lease is for a period of 89 months, and commenced on August 1, 2019. The Company’s monthly base rent for the premises, which is payable from January 1, 2020, will initially be approximately $45 thousand, and will increase each year up to a maximum monthly base rent of approximately $53 thousand. The Company intends to consolidate its Portland and San Francisco offices into this new office location.

Rent expense for the aforementioned operating leases was approximately $1.6 million, $1.2 million and $0.7 million for the years ended June 30, 2019, 2018, and 2017, respectively.

SUMMARY OF LEASE OBLIGATIONS

Future minimum lease payments for fiscal years subsequent to June 30, 2019 under non-cancellable operating leases and capital leases are as follows:



($ in thousands)	Operating Leases		Capital Leases
2020	$	1,326	$	106
2021	1,151		34
2022	1,180		12
2023	1,208		1
2024	859		1
Thereafter	1,550		—
Total minimum lease payments	$	7,274	$	154
Less: interest			(14		)
Present value of minimum lease payments, net			140
Less: current obligations under capital leases			(106		)
Obligations under capital leases, noncurrent			$	34

LITIGATION

New Jersey District Court Consolidated Shareholder Class Actions

On September 11, 2018, Stéphane Gouet filed a purported class action complaint against the Company, Stephen P. Herbert, the Chief Executive Officer, and Priyanka Singh, the former Chief Financial Officer, in the United States District Court for the District of New Jersey. The alleged class members are those who purchased the Company’s securities from November 9, 2017 through September 11, 2018. The complaint alleges that the Company disclosed on September 11, 2018 that it was unable to timely file its Annual Report on Form 10-K for the fiscal year ended June 30, 2018, and that the Audit Committee of the Company’s Board of Directors was in the process of conducting an internal investigation of current and prior period matters relating to certain of the Company’s contractual arrangements, including the accounting treatment, financial reporting and internal controls related to such arrangements. The complaint alleges that the defendants disseminated false statements and failed to disclose material facts and engaged in practices that operated as a fraud or deceit upon Gouet and others similarly situated in connection with their purchases of the Company’s securities during the alleged class period. The complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “1934 Act”) and Rule 10b-5 promulgated thereunder.

Two additional class action complaints, containing substantially the same factual allegations and legal claims were filed against the Company, Herbert and Singh in the United States District Court for the District of New Jersey. On September 13, 2018, David Gray filed a purported class action complaint, and on October 3, 2018, Anthony E. Phillips filed a purported class action complaint. Subsequently, multiple shareholders moved to be appointed lead plaintiff, and on December 19, 2018, the Court consolidated the three actions, appointed a lead plaintiff (the “Lead Plaintiff”), and appointed lead counsel for the consolidated actions (the “Consolidated Action”).

On February 28, 2019, the Court approved a Stipulation agreed to by the parties in the Consolidated Action for the filing of an amended complaint within fourteen days after the Company files the above-referenced Form 10-K. On January 22, 2019, the Company and Herbert filed a motion to transfer the Consolidated Action to the United States District Court for the Eastern District of Pennsylvania. On February 5, 2019, the Lead Plaintiff filed its opposition to the Motion to Transfer. The Court has not yet ruled on the Motion to Transfer.

On August 12, 2019, the University of Puerto Rico Retirement System (“UPR”) filed a purported class action complaint in the United States District Court for the District of New Jersey against the Company, Herbert, Singh, the Company’s Directors at the relevant time (Steven D. Barnhart, Joel Books, Robert L. Metzger, Albin F. Moschner, William J. Reilly and William J. Schoch) (“the Independent Directors”), and the investment banking firms who acted as underwriters for the May 2018 follow-on public offering of the Company (the “Public Offering”): William Blair & Company; LLC (“William Blair”); Craig-Hallum Capital Group, LLC (“Craig-Hallum”); Northland Securities, Inc. (“Northland”); and Barrington Research Associates, Inc. (“Barrington”) (“the Underwriter Defendants”). The alleged class members are those who purchased the Company’s shares pursuant to the registration statement and prospectus issued in connection with the Public Offering. Plaintiff seeks to recover damages caused by Defendants’ alleged violations of the Securities Act of 1933 (the “1933 Act”), and specifically Sections 11, 12 and 15 thereof. The complaint generally seeks compensatory damages, rescission and attorneys’ fees and costs. The UPR complaint was consolidated into the Consolidated Action and the UPR docket was closed. Pursuant to the February 28, 2019 Stipulation referred to above, plaintiffs’ counsel in the Consolidated Action will file one amended complaint (covering the 1933 Act and the 1934 Act claims) after the above-referenced Form 10-K has been filed, and no response to the complaint is required at this time.

The Company plans to vigorously defend against the claims asserted in the Consolidated Action.

Chester County, Pennsylvania Class Action

On May 17, 2019, the City of Warren Police and Fire Retirement System filed a purported class action complaint in the Court of Common Pleas, Chester County, Pennsylvania. The alleged class members are those who purchased the Company’s shares pursuant to the registration statement and prospectus issued in connection with the Public Offering. The defendants are the Company, Herbert, Singh, the Independent Directors, and the Underwriter Defendants. Plaintiffs allege that the registration statement was negligently prepared, contained untrue statements of material facts or omitted to state facts necessary to make the statements not misleading, and was not prepared in accordance with the rules and regulations governing its preparation. Plaintiff seeks to recover damages caused by defendants’ alleged violations of the 1933 Act, and specifically Sections 11, 12 and 15 thereof. The complaint generally seeks compensatory damages, rescission and attorneys’ fees and costs. Defendants filed a Petition for Stay due to the previously filed Consolidated Action, and on September 20, 2019, and following a hearing, the Court granted the Petition and stayed the action pending the final disposition of the Consolidated Action. The Company plans to vigorously defend against these claims.

The Shareholder Demand Letters

By letter dated October 12, 2018, Peter D’Arcy, 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. The letter alleged the officers and Directors made false and misleading statements that failed to disclose that the Company’s accounting treatment, financial reporting and internal controls related to certain of the Company’s contractual agreements would result in an internal investigation and would delay the Company’s filing of its Annual Report on Form 10-K for the fiscal year ended June 30, 2018, and that the Company failed to maintain internal controls. By letter dated October 18, 2018, Chiu Jen-Ting, 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 issues similar to those asserted by Mr. D’Arcy. By letter dated August 2, 2019, Stan Emanuel, 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 issues similar to those asserted by Mr. D’Arcy. In response to the first two demand letters, and in accordance with Pennsylvania law, in January 2019, the Board of Directors formed a special litigation committee (the “SLC”) consisting of Joel Brooks and William Reilly, Jr., in order to, among other things, investigate and evaluate the demand letters. The SLC has retained counsel and the SLC and its counsel are currently investigating the matters raised in these letters.

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.

UNAUDITED QUARTERLY DATA

12 Months Ended

Jun. 30, 2019

Quarterly Financial Information Disclosure [Abstract]

UNAUDITED QUARTERLY DATA

NAUDITED QUARTERLY DATA



	Three months ended
($ in thousands, except per share data)	September 30, 2018			December 31, 2018			March 31, 2019			June 30, 2019
	(unaudited)			(unaudited)			(unaudited)			(unaudited)

Revenue	$	33,522		$	34,406		$	37,646		$	38,225
Gross profit	$	10,110		$	9,243		$	9,779		$	8,987
Operating loss	$	(5,921	)	$	(10,200	)	$	(3,892	)	$	(10,143	)
Net loss	$	(6,320	)	$	(10,657	)	$	(4,510	)	$	(10,541	)
Cumulative preferred dividends	$	(334	)	$	—		$	(334	)	$	—
Net loss applicable to common shares	$	(6,654	)	$	(10,657	)	$	(4,844	)	$	(10,541	)
Net loss per common share - basic	$	(0.11	)	$	(0.18	)	$	(0.08	)	$	(0.18	)
Net loss per common share - diluted	$	(0.11	)	$	(0.18	)	$	(0.08	)	$	(0.18	)
Weighted average number of common shares outstanding - basic	60,053,912			60,059,936			60,065,053			60,065,978
Weighted average number of common shares outstanding - diluted	60,053,912			60,059,936			60,065,053			60,065,978



	Three months ended
($ in thousands, except per share data)	September 30, 2017 (As Restated)			December 31, 2017 (As Restated)			March 31, 2018 (As Restated)			June 30, 2018
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Revenue	$	25,259		$	31,532		$	33,592		$	42,125
Gross profit	$	6,181		$	9,172		$	9,845		$	10,478
Operating loss	$	(1,750	)	$	(3,905	)	$	(2,566	)	$	(1,002	)
Net loss	$	(2,171	)	$	(4,194	)	$	(3,223	)	$	(1,696	)
Cumulative preferred dividends	$	(334	)	$	—		$	(334	)	$	—
Net loss applicable to common shares	$	(2,505	)	$	(4,194	)	$	(3,557	)	$	(1,696	)
Net loss per common share - basic	$	(0.05	)	$	(0.08	)	$	(0.07	)	$	(0.03	)
Net loss per common share - diluted	$	(0.05	)	$	(0.08	)	$	(0.07	)	$	(0.03	)
Weighted average number of common shares outstanding - basic	47,573,364			52,150,106			53,637,085			54,064,750
Weighted average number of common shares outstanding - diluted	47,573,364			52,150,106			53,637,085			54,064,750



	Three months ended
($ in thousands, except per share data)	September 30, 2016 (As Restated)			December 31, 2016 (As Restated)			March 31, 2017 (As Restated)			June 30, 2017 (As Restated)
	(unaudited)			(unaudited)			(unaudited)			(unaudited)

Revenue	$	21,569		$	21,787		$	26,301		$	31,779
Gross profit	$	6,297		$	6,445		$	6,342		$	5,977
Operating loss	$	(1,383	)	$	109		$	(459	)	$	(2,401	)
Net loss	$	(3,370	)	$	(232	)	$	(925	)	$	(2,938	)
Cumulative preferred dividends	$	(334	)	$	—		$	(334	)	$	—
Net loss applicable to common shares	$	(3,704	)	$	(232	)	$	(1,259	)	$	(2,938	)
Net loss per common share - basic	$	(0.10	)	$	(0.01	)	$	(0.03	)	$	(0.07	)
Net loss per common share - diluted	$	(0.10	)	$	(0.01	)	$	(0.03	)	$	(0.07	)
Weighted average number of common shares outstanding - basic	38,488,005			40,308,934			40,327,697			40,331,993
Weighted average number of common shares outstanding - diluted	38,488,005			40,308,934			40,327,697			40,331,993

Explanatory Note:

The Company is providing restated quarterly and year-to-date unaudited consolidated financial information for interim periods occurring within fiscal years ended June 30, 2017 and 2018 in order to comply with SEC requirements. Refer to Note 2 — "Restatement of Consolidated Financial Statements" for further background concerning the events preceding the restatement of financial information in this Form 10-K.

As discussed in Note 2, the Audit Committee and the Company identified certain errors that are corrected through adjustments made as part of the restatement. These adjustments include corrections related to the investigation of customer transactions that was conducted, as well as (i) corrections related to the Company's acquisition and financial integration of Cantaloupe and (ii) corrections resulting from management's review of significant accounts and transactions.

A summary of the impact of these matters on income (loss) before taxes is presented below:



($ in thousands)	Increase / (Decrease) Restatement Impact
	Three months ended September 30, 2017			Three months ended December 31, 2017			Six months ended December 31, 2017			Three months ended March 31, 2018			Nine months ended March 31, 2018
Audit Committee Investigation-related Adjustments:
Revenue	$	(411	)	$	(866	)	$	(1,277	)	$	(768	)	$	(2,045	)
Costs of sales	$	165		$	(1,225	)	$	(1,060	)	$	(293	)	$	(1,353	)
Gross profit	$	(576	)	$	359		$	(217	)	$	(475	)	$	(692	)
Operating income (loss)	$	(576	)	$	359		$	(217	)	$	(9	)	$	(226	)
Income (loss) before income taxes	$	(576	)	$	357		$	(219	)	$	(29	)	$	(248	)

Acquisition and Financial Integration-related Adjustments:
Revenue	$	—		$	(60	)	$	(60	)	$	(1,546	)	$	(1,606	)
Costs of sales	$	—		$	(33	)	$	(33	)	$	(79	)	$	(112	)
Gross profit	$	—		$	(27	)	$	(27	)	$	(1,467	)	$	(1,494	)
Operating income (loss)	$	—		$	(288	)	$	(288	)	$	(1,594	)	$	(1,882	)
Income (loss) before income taxes	$	—		$	(223	)	$	(223	)	$	(1,499	)	$	(1,722	)

Significant Account and Transaction Review and Other:
Revenue	$	53		$	(47	)	$	6		$	75		$	81
Costs of sales	$	497		$	313		$	810		$	231		$	1,041
Gross profit	$	(444	)	$	(360	)	$	(804	)	$	(156	)	$	(960	)
Operating income (loss)	$	(622	)	$	(775	)	$	(1,397	)	$	(461	)	$	(1,858	)
Income (loss) before income taxes	$	(886	)	$	(1,041	)	$	(1,927	)	$	(696	)	$	(2,623	)



($ in thousands)	Increase / (Decrease) Restatement Impact
	Three months ended September 30, 2016			Three months ended December 31, 2016			Six months ended December 31, 2016			Three months ended March 31, 2017			Nine months ended March 31, 2017			Three months ended June 30, 2017
Audit Committee Investigation-related Adjustments:
Revenue	$	—		$	—		$	—		$	(111	)	$	(111	)	$	(2,457	)
Costs of sales	$	—		$	—		$	—		$	(24	)	$	(24	)	$	(1,139	)
Gross profit	$	—		$	—		$	—		$	(87	)	$	(87	)	$	(1,318	)
Operating income (loss)	$	—		$	—		$	—		$	(87	)	$	(87	)	$	(1,318	)
Income (loss) before income taxes	$	—		$	—		$	—		$	(87	)	$	(87	)	$	(1,318	)

Significant Account and Transaction Review and Other:
Revenue	$	(18	)	$	31		$	13		$	(49	)	$	(36	)	$	(53	)
Costs of sales	$	(148	)	$	(81	)	$	(229	)	$	147		$	(82	)	$	173
Gross profit	$	130		$	112		$	242		$	(196	)	$	46		$	(226	)
Operating income (loss)	$	(434	)	$	(124	)	$	(558	)	$	(790	)	$	(1,348	)	$	(1,516	)
Income (loss) before income taxes	$	(769	)	$	(441	)	$	(1,210	)	$	(1,159	)	$	(2,369	)	$	(1,831	)

A summary of the impact of these matters on the consolidated balance sheet is presented below, excluding any tax effect from the restatement adjustments in the aggregate:



($ in thousands)	Increase / (Decrease) Restatement Impact
	As of September 30, 2016			As of December 31, 2016			As of March 31, 2017			As of September 30, 2017			As of December 31, 2017			As of March 31, 2018
Audit Committee Investigation-related Adjustments:
Accounts receivables	$	—		$	—		$	—		$	(315	)	$	(1,774	)	$	(1,954	)
Finance receivables, net	$	—		$	—		$	92		$	(1,640	)	$	(1,269	)	$	(1,666	)
Inventory, net	$	—		$	—		$	—		$	941		$	2,166		$	2,459
Prepaid expenses and other current assets	$	—		$	—		$	30		$	25		$	25		$	25
Other assets	$	—		$	—		$	95		$	82		$	76		$	69
Property and equipment, net	$	—		$	—		$	—		$	—		$	(162	)	$	(146	)
Accounts payable	$	—		$	—		$	270		$	270		$	106		$	99
Accrued expenses	$	—		$	—		$	34		$	803		$	580		$	341

Acquisition and Financial Integration-related Adjustments:
Cash and cash equivalents	$	—		$	—		$	—		$	—		$	(26	)	$	(52	)
Accounts receivables	$	—		$	—		$	—		$	—		$	1,133		$	(1,974	)
Finance receivables, net	$	—		$	—		$	—		$	—		$	(1,515	)	$	158
Inventory, net	$	—		$	—		$	—		$	—		$	(500	)	$	(500	)
Prepaid expenses and other current assets	$	—		$	—		$	—		$	—		$	(35	)	$	(44	)
Property and equipment, net	$	—		$	—		$	—		$	—		$	721		$	826
Other assets	$	—		$	—		$	—		$	—		$	(139	)	$	(175	)
Goodwill	$	—		$	—		$	—		$	—		$	4,121		$	4,121
Accrued expenses	$	—		$	—		$	—		$	—		$	785		$	883
Deferred revenue	$	—		$	—		$	—		$	—		$	(153	)	$	(153	)
Common stock	$	—		$	—		$	—		$	—		$	3,469		$	3,469

Significant Account and Transaction Review and Other:
Accounts receivables	$	(143	)	$	110		$	61		$	77		$	(8	)	$	127
Finance receivables, net	$	—		$	—		$	—		$	—		$	1,074		$	28
Inventory, net	$	(338	)	$	(348	)	$	(470	)	$	(305	)	$	(861	)	$	(1,067	)
Prepaid expenses and other current assets	$	13		$	13		$	13		$	(136	)	$	(150	)	$	(173	)
Other assets	$	—		$	—		$	—		$	(543	)	$	(600	)	$	(693	)
Property and equipment, net	$	2,865		$	2,561		$	2,168		$	(1,149	)	$	(737	)	$	(635	)
Accounts payable	$	17		$	19		$	21		$	25		$	27		$	29
Accrued expenses	$	4,506		$	5,222		$	6,166		$	8,319		$	9,087		$	9,877
Line of credit, net	$	13		$	13		$	13		$	—		$	—		$	—
Capital lease obligation and current obligations under long-term debt	$	4,117		$	3,566		$	2,998		$	(21	)	$	367		$	(5	)
Deferred revenue	$	—		$	—		$	—		$	(27	)	$	(27	)	$	(27	)
Deferred gain from sale-leaseback transactions	$	(685	)	$	(470	)	$	(255	)	$	(198	)	$	(198	)	$	(198	)
Deferred gain from sale-leaseback transactions, less current portion	$	—		$	—		$	—		$	(99	)	$	(49	)	$	—
Capital lease obligation and long-term debt, less current portion	$	—		$	—		$	—		$	—		$	697		$	—
Common stock	$	—		$	—		$	—		$	(166	)	$	(372	)	$	(867	)

The effect of the restatement on the previously filed consolidated balance sheet as of September 30, 2017 is as follows:



	As of September 30, 2017
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Assets
Current assets:
Cash and cash equivalents	$	51,870		$	—		$	51,870
Accounts receivable	10,288			(473		)	9,815
Finance receivables, net	3,082			(1,641		)	1,441
Inventory, net	8,240			636			8,876
Prepaid expenses and other current assets	1,122			(66		)	1,056
Total current assets	74,602			(1,544		)	73,058

Non-current assets:
Finance receivables due after one year	7,742			—			7,742
Other assets	750			(461		)	289
Property and equipment, net	11,850			(1,149		)	10,701
Deferred income taxes	28,205			(28,205		)	—
Intangibles, net	578			—			578
Goodwill	11,492			—			11,492
Total non-current assets	60,617			(29,815		)	30,802

Total assets	$	135,219		$	(31,359	)	$	103,860

Liabilities, convertible preferred stock and shareholders’ equity
Current liabilities:
Accounts payable	$	14,211		$	295		$	14,506
Accrued expenses	3,795			8,422			12,217
Line of credit, net	7,051			—			7,051
Capital lease obligations and current obligations under long-term debt	2,649			(21		)	2,628
Income taxes payable	10			(10		)	—
Deferred revenue	—			439			439
Deferred gain from sale-leaseback transactions	197			(197		)	—
Total current liabilities	27,913			8,928			36,841

Long-term liabilities:
Deferred income taxes	—			109			109
Capital lease obligations and long-term debt, less current portion	1,049			—			1,049
Accrued expenses, less current portion	62			—			62
Deferred gain from sale-leaseback transactions, less current portion	99			(99		)	—
Total long-term liabilities	1,210			10			1,220

Total liabilities	$	29,123		$	8,938		$	38,061
Commitments and contingencies
Convertible preferred stock:
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $19,109 at September 30, 2017	—			3,138			3,138
Shareholders’ equity:
Preferred stock, no par value, 1,800,000 shares authorized, no shares issued	—			—			—
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $19,109 at September 30, 2017	3,138			(3,138		)	—
Common stock, no par value, 640,000,000 shares authorized, 50,194,731 shares issued and outstanding at September 30, 2017	286,463			(167		)	286,296
Accumulated deficit	(183,505		)	(40,130		)	(223,635		)
Total shareholders’ equity	106,096			(43,435		)	62,661
Total liabilities, convertible preferred stock and shareholders’ equity	$	135,219		$	(31,359	)	$	103,860

The effect of the restatement on the previously filed consolidated statement of operations for the three months ended September 30, 2017 is as follows:



	Three months ended September 30, 2017
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Revenue:
License and transaction fees	$	19,944		$	(547	)	$	19,397
Equipment sales	5,673			189			5,862
Total revenue	25,617			(358		)	25,259

Costs of sales:
Cost of services	13,326			(79		)	13,247
Cost of equipment	5,090			741			5,831
Total costs of sales	18,416			662			19,078
Gross profit	7,201			(1,020		)	6,181

Operating expenses:
Selling, general and administrative	6,746			178			6,924
Integration and acquisition costs	762			—			762
Depreciation and amortization	245			—			245
Total operating expenses	7,753			178			7,931
Operating loss	(552		)	(1,198		)	(1,750		)

Other income (expense):
Interest income	80			—			80
Interest expense	(209		)	(264		)	(473		)
Total other expense, net	(129		)	(264		)	(393		)

Loss before income taxes	(681		)	(1,462		)	(2,143		)
Benefit (provision) for income taxes	468			(496		)	(28		)

Net loss	(213		)	(1,958		)	(2,171		)
Preferred dividends	(334		)	—			(334		)
Net loss applicable to common shares	$	(547	)	$	(1,958	)	$	(2,505	)
Net loss per common share
Basic	$	(0.01	)	$	(0.04	)	$	(0.05	)
Diluted	$	(0.01	)	$	(0.04	)	$	(0.05	)
Weighted average number of common shares outstanding
Basic	47,573,364			—			47,573,364
Diluted	47,573,364			—			47,573,364

The effect of the restatement on the previously filed consolidated statement of cash flows for the three months ended September 30, 2017 is as follows:



	Three months ended September 30, 2017
($ in thousands)	As Previously Reported			Adjustments			As Restated

OPERATING ACTIVITIES:
Net loss	$	(213	)	$	(1,958	)	$	(2,171	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Non-cash stock-based compensation	576			(167		)	409
(Gain) loss on disposal of property and equipment	(18		)	—			(18		)
Non-cash interest and amortization of debt discount	15			2			17
Bad debt expense	118			50			168
Provision for inventory reserve	—			221			221
Depreciation and amortization	1,492			(122		)	1,370
Excess tax benefits	67			—			67
Deferred income taxes, net	(535		)	551			16
Recognition of deferred gain from sale-leaseback transactions	(43		)	43			—
Changes in operating assets and liabilities:
Accounts receivable	(3,192		)	43			(3,149		)
Finance receivables, net	8,771			397			9,168
Inventory, net	(3,648		)	(252		)	(3,900		)
Prepaid expenses and other current assets	(217		)	114			(103		)
Accounts payable and accrued expenses	(2,168		)	678			(1,490		)
Deferred revenue	—			171			171
Income taxes payable	—			(55		)	(55		)
Net cash provided by operating activities	1,005			(284		)	721

INVESTING ACTIVITIES:
Purchase of property and equipment, including rentals	(992		)	272			(720		)
Proceeds from sale of property and equipment	45			—			45
Net cash used in investing activities	(947		)	272			(675		)

FINANCING ACTIVITIES:
Issuance of common stock in public offering, net	39,888			—			39,888
Repayment of capital lease obligations and long-term debt	(821		)	12			(809		)
Net cash provided by financing activities	39,067			12			39,079

Net increase in cash and cash equivalents	39,125			—			39,125
Cash and cash equivalents at beginning of year	12,745			—			12,745
Cash and cash equivalents at end of period	$	51,870		$	—		$	51,870

The effect of the restatement on the previously filed consolidated balance sheet as of December 31, 2017 is as follows:



	As of December 31, 2017
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Assets
Current assets:
Cash and cash equivalents	$	15,386		$	(26	)	$	15,360
Accounts receivable	15,472			(765		)	14,707
Finance receivables, net	5,517			(2,221		)	3,296
Inventory, net	11,215			804			12,019
Prepaid expenses and other current assets	1,971			(361		)	1,610
Total current assets	49,561			(2,569		)	46,992

Non-current assets:
Finance receivables due after one year	11,215			513			11,728
Other assets	1,120			(662		)	458
Property and equipment, net	12,622			(179		)	12,443
Deferred income taxes	14,774			(14,774		)	—
Intangibles, net	30,910			—			30,910
Goodwill	64,449			(46		)	64,403
Total non-current assets	135,090			(15,148		)	119,942

Total assets	$	184,651		$	(17,717	)	$	166,934

Liabilities, convertible preferred stock and shareholders’ equity
Current liabilities:
Accounts payable	$	23,775		$	133		$	23,908
Accrued expenses	6,798			9,825			16,623
Capital lease obligations, current obligations under long-term debt, and collateralized borrowings	5,121			367			5,488
Income taxes payable	6			(6		)	—
Deferred revenue	595			135			730
Deferred gain from sale-leaseback transactions	198			(198		)	—
Total current liabilities	36,493			10,256			46,749

Long-term liabilities:
Revolving credit facility	10,000			—			10,000
Deferred income taxes	—			91			91
Capital lease obligations, long-term debt, and collateralized borrowings, less current portion	23,874			696			24,570
Accrued expenses, less current portion	65			—			65
Deferred gain from sale-leaseback transactions, less current portion	49			(49		)	—
Total long-term liabilities	33,988			738			34,726

Total liabilities	$	70,481		$	10,994		$	81,475
Commitments and contingencies
Convertible preferred stock:
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $19,109 at December 31, 2017	—			3,138			3,138
Shareholders’ equity:
Preferred stock, no par value, 1,800,000 shares authorized, no shares issued	—			—			—
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $19,109 at December 31, 2017	3,138			(3,138		)	—
Common stock, no par value, 640,000,000 shares authorized, 53,619,898 shares issued and outstanding at December 31, 2017	307,053			3,097			310,150
Accumulated deficit	(196,021		)	(31,808		)	(227,829		)
Total shareholders’ equity	114,170			(31,849		)	82,321
Total liabilities, convertible preferred stock and shareholders’ equity	$	184,651		$	(17,717	)	$	166,934

The effect of the restatement on the previously filed consolidated statement of operations for the three and six months ended December 31, 2017 is as follows:



	Three months ended December 31, 2017									Six months ended December 31, 2017
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated			As Previously Reported			Adjustments			As Restated

Revenue:
License and transaction fees	$	22,853		$	661		$	23,514		$	42,797		$	114		$	42,911
Equipment sales	9,653			(1,635		)	8,018			15,326			(1,446		)	13,880
Total revenue	32,506			(974		)	31,532			58,123			(1,332		)	56,791

Costs of sales:
Cost of services	14,362			(6		)	14,356			27,688			(85		)	27,603
Cost of equipment	8,943			(939		)	8,004			14,033			(198		)	13,835
Total costs of sales	23,305			(945		)	22,360			41,721			(283		)	41,438
Gross profit	9,201			(29		)	9,172			16,402			(1,049		)	15,353

Operating expenses:
Selling, general and administrative	8,329			676			9,005			15,075			854			15,929
Integration and acquisition costs	3,335			—			3,335			4,097			—			4,097
Depreciation and amortization	737			—			737			982			—			982
Total operating expenses	12,401			676			13,077			20,154			854			21,008
Operating loss	(3,200		)	(705		)	(3,905		)	(3,752		)	(1,903		)	(5,655		)

Other income (expense):
Interest income	251			73			324			331			73			404
Interest expense	(494		)	(276		)	(770		)	(703		)	(540		)	(1,243		)
Total other expense, net	(243		)	(203		)	(446		)	(372		)	(467		)	(839		)

Loss before income taxes	(3,443		)	(908		)	(4,351		)	(4,124		)	(2,370		)	(6,494		)
(Provision) benefit for income taxes	(9,073		)	9,230			157			(8,605		)	8,734			129

Net loss	(12,516		)	8,322			(4,194		)	(12,729		)	6,364			(6,365		)
Preferred dividends	—			—			—			(334		)	—			(334		)
Net loss applicable to common shares	$	(12,516	)	$	8,322		$	(4,194	)	$	(13,063	)	$	6,364		$	(6,699	)
Net loss per common share
Basic	$	(0.24	)	$	0.16		$	(0.08	)	$	(0.26	)	$	0.13		$	(0.13	)
Diluted	$	(0.24	)	$	0.16		$	(0.08	)	$	(0.26	)	$	0.13		$	(0.13	)
Weighted average number of common shares outstanding
Basic	52,150,106			—			52,150,106			49,861,735			—			49,861,735
Diluted	52,150,106			—			52,150,106			49,861,735			—			49,861,735

The effect of the restatement on the previously filed consolidated statement of cash flows for the six months ended December 31, 2017 is as follows:



	Six months ended December 31, 2017
($ in thousands)	As Previously Reported			Adjustments			As Restated

OPERATING ACTIVITIES:
Net loss	$	(12,729	)	$	6,364		$	(6,365	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Non-cash stock-based compensation	1,356			(372		)	984
(Gain) loss on disposal of property and equipment	(83		)	3			(80		)
Non-cash interest and amortization of debt discount	86			8			94
Bad debt expense	291			91			382
Provision for inventory reserve	—			1,091			1,091
Depreciation and amortization	3,476			(198		)	3,278
Excess tax benefits	67			—			67
Deferred income taxes, net	8,537			(8,696		)	(159		)
Recognition of deferred gain from sale-leaseback transactions	(93		)	93			—
Changes in operating assets and liabilities:
Accounts receivable	(5,290		)	(42		)	(5,332		)
Finance receivables, net	7,958			(626		)	7,332
Inventory, net	(5,822		)	(1,793		)	(7,615		)
Prepaid expenses and other current assets	(606		)	604			(2		)
Accounts payable and accrued expenses	6,950			754			7,704
Deferred revenue	—			570			570
Income taxes payable	40			(80		)	(40		)
Net cash provided by operating activities	4,138			(2,229		)	1,909

INVESTING ACTIVITIES:
Purchase of property and equipment, including rentals	(1,767		)	33			(1,734		)
Proceeds from sale of property and equipment	157			—			157
Cash paid for acquisitions, net of cash acquired	(65,181		)	—			(65,181		)
Net cash used in investing activities	(66,791		)	33			(66,758		)

FINANCING ACTIVITIES:
Proceeds from collateralized borrowing from the transfer of finance receivables	—			1,075			1,075
Payment of debt issuance costs	(445		)	—			(445		)
Proceeds from issuance of long-term debt	25,100			—			25,100
Proceeds from revolving credit facility	10,000			—			10,000
Issuance of common stock in public offering, net	39,888			—			39,888
Repayment of line of credit	(7,111		)	—			(7,111		)
Repayment of capital lease obligations and long-term debt	(2,138		)	1,095			(1,043		)
Net cash provided by financing activities	65,294			2,170			67,464

Net increase in cash and cash equivalents	2,641			(26		)	2,615
Cash and cash equivalents at beginning of year	12,745			—			12,745
Cash and cash equivalents at end of period	$	15,386		$	(26	)	$	15,360

The effect of the restatement on the previously filed consolidated balance sheet as of March 31, 2018 is as follows:



	As of March 31, 2018
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Assets
Current assets:
Cash and cash equivalents	$	17,107		$	(52	)	$	17,055
Accounts receivable	23,166			(3,723		)	19,443
Finance receivables, net	3,904			(1,670		)	2,234
Inventory, net	11,030			893			11,923
Prepaid expenses and other current assets	1,869			(591		)	1,278
Total current assets	57,076			(5,143		)	51,933

Non-current assets:
Finance receivables due after one year	9,679			191			9,870
Other assets	1,214			(800		)	414
Property and equipment, net	12,198			45			12,243
Deferred income taxes	16,911			(16,911		)	—
Intangibles, net	30,119			—			30,119
Goodwill	64,196			(47		)	64,149
Total non-current assets	134,317			(17,522		)	116,795

Total assets	$	191,393		$	(22,665	)	$	168,728

Liabilities, convertible preferred stock and shareholders’ equity
Current liabilities:
Accounts payable	$	29,446		$	128		$	29,574
Accrued expenses	7,961			10,547			18,508
Capital lease obligations and current obligations under long-term debt	4,475			(5		)	4,470
Deferred revenue	441			70			511
Deferred gain from sale-leaseback transactions	198			(198		)	—
Total current liabilities	42,521			10,542			53,063

Long-term liabilities:
Revolving credit facility	10,000			—			10,000
Deferred income taxes	—			96			96
Capital lease obligations and long-term debt, less current portion	22,895			—			22,895
Accrued expenses, less current portion	66			—			66
Total long-term liabilities	32,961			96			33,057

Total liabilities	$	75,482		$	10,638		$	86,120
Commitments and contingencies
Convertible preferred stock:
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $19,443 at March 31, 2018	—			3,138			3,138
Shareholders’ equity:
Preferred stock, no par value, 1,800,000 shares authorized, no shares issued	—			—			—
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $19,443 at March 31, 2018	3,138			(3,138		)	—
Common stock, no par value, 640,000,000 shares authorized, 53,666,718 shares issued and outstanding at March 31, 2018	307,634			2,888			310,522
Accumulated deficit	(194,861		)	(36,191		)	(231,052		)
Total shareholders’ equity	115,911			(36,441		)	79,470
Total liabilities, convertible preferred stock and shareholders’ equity	$	191,393		$	(22,665	)	$	168,728

The effect of the restatement on the previously filed consolidated statement of operations for the three and nine months ended March 31, 2018 is as follows:



	Three months ended March 31, 2018									Nine months ended March 31, 2018
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated			As Previously Reported			Adjustments			As Restated

Revenue:
License and transaction fees	$	27,020		$	(1,639	)	$	25,381		$	69,817		$	(1,525	)	$	68,292
Equipment sales	8,812			(601		)	8,211			24,138			(2,047		)	22,091
Total revenue	35,832			(2,240		)	33,592			93,955			(3,572		)	90,383

Costs of sales:
Cost of services	16,012			25			16,037			43,700			(60		)	43,640
Cost of equipment	7,876			(166		)	7,710			21,909			(364		)	21,545
Total costs of sales	23,888			(141		)	23,747			65,609			(424		)	65,185
Gross profit	11,944			(2,099		)	9,845			28,346			(3,148		)	25,198

Operating expenses:
Selling, general and administrative	9,572			57			9,629			24,647			911			25,558
Integration and acquisition costs	1,747			(70		)	1,677			5,844			(70		)	5,774
Depreciation and amortization	1,125			(20		)	1,105			2,107			(20		)	2,087
Total operating expenses	12,444			(33		)	12,411			32,598			821			33,419
Operating loss	(500		)	(2,066		)	(2,566		)	(4,252		)	(3,969		)	(8,221		)

Other income (expense):
Interest income	134			92			226			465			165			630
Interest expense	(612		)	(251		)	(863		)	(1,315		)	(791		)	(2,106		)
Total other expense, net	(478		)	(159		)	(637		)	(850		)	(626		)	(1,476		)

Loss before income taxes	(978		)	(2,225		)	(3,203		)	(5,102		)	(4,595		)	(9,697		)
Benefit (provision) for income taxes	2,138			(2,158		)	(20		)	(6,467		)	6,576			109

Net income (loss)	1,160			(4,383		)	(3,223		)	(11,569		)	1,981			(9,588		)
Preferred dividends	(334		)	—			(334		)	(668		)	—			(668		)
Net income (loss) applicable to common shares	$	826		$	(4,383	)	$	(3,557	)	$	(12,237	)	$	1,981		$	(10,256	)
Net income (loss) per common share
Basic	$	0.02		$	(0.09	)	$	(0.07	)	$	(0.24	)	$	0.04		$	(0.20	)
Diluted	$	0.02		$	(0.09	)	$	(0.07	)	$	(0.24	)	$	0.04		$	(0.20	)
Weighted average number of common shares outstanding
Basic	53,637,085			—			53,637,085			51,101,813			—			51,101,813
Diluted	54,234,566			(597,481		)	53,637,085			51,101,813			—			51,101,813

The effect of the restatement on the previously filed consolidated statement of cash flows for the nine months ended March 31, 2018 is as follows:



	Nine months ended March 31, 2018
($ in thousands)	As Previously Reported			Adjustments			As Restated

OPERATING ACTIVITIES:
Net loss	$	(11,569	)	$	1,981		$	(9,588	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Non-cash stock-based compensation	2,005			(581		)	1,424
(Gain) loss on disposal of property and equipment	(112		)	13			(99		)
Non-cash interest and amortization of debt discount	100			18			118
Bad debt expense	506			4			510
Provision for inventory reserve	—			1,361			1,361
Depreciation and amortization	5,858			(272		)	5,586
Excess tax benefits	67			—			67
Deferred income taxes, net	6,400			(6,554		)	(154		)
Recognition of deferred gain from sale-leaseback transactions	(143		)	143			—
Changes in operating assets and liabilities:
Accounts receivable	(12,972		)	3,008			(9,964		)
Finance receivables, net	11,114			(2,912		)	8,202
Sale of finance receivables	—			2,051			2,051
Inventory, net	(5,624		)	(2,153		)	(7,777		)
Prepaid expenses and other current assets	(564		)	919			355
Accounts payable and accrued expenses	13,808			1,447			15,255
Deferred revenue	(185		)	536			351
Income taxes payable	—			(30		)	(30		)
Net cash provided by operating activities	8,689			(1,021		)	7,668

INVESTING ACTIVITIES:
Purchase of property and equipment, including rentals	(3,005		)	(133		)	(3,138		)
Proceeds from sale of property and equipment	252			—			252
Cash paid for acquisitions, net of cash acquired	(65,181		)	—			(65,181		)
Net cash used in investing activities	(67,934		)	(133		)	(68,067		)

FINANCING ACTIVITIES:
Proceeds from collateralized borrowing from the transfer of finance receivables	—			1,075			1,075
Cash used in retirement of common stock	(156		)	—			(156		)
Proceeds from exercise of common stock options	109			—			109
Payment of debt issuance costs	(445		)	—			(445		)
Proceeds from issuance of long-term debt	25,100			—			25,100
Proceeds from revolving credit facility	12,500			—			12,500
Repayment of revolving credit facility	(2,500		)	—			(2,500		)
Issuance of common stock in public offering, net	39,888			—			39,888
Repayment of line of credit	(7,111		)	—			(7,111		)
Repayment of capital lease obligations and long-term debt	(3,778		)	27			(3,751		)
Net cash provided by financing activities	63,607			1,102			64,709

Net increase in cash and cash equivalents	4,362			(52		)	4,310
Cash and cash equivalents at beginning of year	12,745			—			12,745
Cash and cash equivalents at end of period	$	17,107		$	(52	)	$	17,055

The effect of the restatement on the previously filed consolidated balance sheet as of September 30, 2016 is as follows:



	As of September 30, 2016
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Assets
Current assets:
Cash and cash equivalents	$	18,198		$	—		$	18,198
Accounts receivable	5,840			(233		)	5,607
Finance receivables, net	3,349			—			3,349
Inventory, net	4,264			(338		)	3,926
Prepaid expenses and other current assets	1,439			(87		)	1,352
Deferred income taxes	2,271			(2,271		)	—
Total current assets	35,361			(2,929		)	32,432

Non-current assets:
Finance receivables due after one year	3,962			—			3,962
Other assets	163			—			163
Property and equipment, net	9,570			2,866			12,436
Deferred income taxes	25,568			(25,568		)	—
Intangibles, net	754			—			754
Goodwill	11,703			—			11,703
Total non-current assets	51,720			(22,702		)	29,018

Total assets	$	87,081		$	(25,631	)	$	61,450

Liabilities, convertible preferred stock and shareholders’ equity
Current liabilities:
Accounts payable	$	8,693		$	17		$	8,710
Accrued expenses	3,912			4,223			8,135
Line of credit, net	7,258			13			7,271
Capital lease obligations and current obligations under long-term debt	834			4,118			4,952
Income taxes payable	8			7			15
Deferred revenue	—			94			94
Deferred gain from sale-leaseback transactions	685			(685		)	—
Total current liabilities	21,390			7,787			29,177

Long-term liabilities:
Deferred income tax	—			47			47
Capital lease obligations and long-term debt, less current portion	1,517			—			1,517
Accrued expenses, less current portion	11			—			11
Total long-term liabilities	1,528			47			1,575

Total liabilities	$	22,918		$	7,834		$	30,752
Commitments and contingencies
Convertible preferred stock:
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $18,442 at September 30, 2016	—			3,138			3,138
Shareholders’ equity:
Preferred stock, no par value, 1,800,000 shares authorized, no shares issued	—			—			—
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $18,442 at September 30, 2016	3,138			(3,138		)	—
Common stock, no par value, 640,000,000 shares authorized, 40,295,425 shares issued and outstanding at September 30, 2016	244,996			—			244,996
Accumulated deficit	(183,971		)	(33,465		)	(217,436		)
Total shareholders’ equity	64,163			(36,603		)	27,560
Total liabilities, convertible preferred stock and shareholders’ equity	$	87,081		$	(25,631	)	$	61,450

The effect of the restatement on the previously filed consolidated statement of operations for the three months ended September 30, 2016 is as follows:



	Three months ended September 30, 2016
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Revenue:
License and transaction fees	$	16,365		$	(2	)	$	16,363
Equipment sales	5,223			(17		)	5,206
Total revenue	21,588			(19		)	21,569

Costs of sales:
Cost of services	11,243			(144		)	11,099
Cost of equipment	4,178			(5		)	4,173
Total costs of sales	15,421			(149		)	15,272
Gross profit	6,167			130			6,297

Operating expenses:
Selling, general and administrative	6,909			563			7,472
Depreciation and amortization	208			—			208
Total operating expenses	7,117			563			7,680
Operating loss	(950		)	(433		)	(1,383		)

Other income (expense):
Interest income	73			—			73
Interest expense	(212		)	(335		)	(547		)
Change in fair value of warrant liabilities	(1,490		)	—			(1,490		)
Total other expense, net	(1,629		)	(335		)	(1,964		)

Loss before income taxes	(2,579		)	(768		)	(3,347		)
Benefit (provision) for income taxes	115			(138		)	(23		)

Net loss	(2,464		)	(906		)	(3,370		)
Preferred dividends	(334		)	—			(334		)
Net loss applicable to common shares	$	(2,798	)	$	(906	)	$	(3,704	)
Net loss per common share
Basic	$	(0.07	)	$	(0.03	)	$	(0.10	)
Diluted	$	(0.07	)	$	(0.03	)	$	(0.10	)
Weighted average number of common shares outstanding
Basic	38,488,005			—			38,488,005
Diluted	38,488,005			—			38,488,005

The effect of the restatement on the previously filed consolidated statement of cash flows for the three months ended September 30, 2016 is as follows:



	Three months ended September 30, 2016
($ in thousands)	As Previously Reported			Adjustments			As Restated

OPERATING ACTIVITIES:
Net loss	$	(2,464	)	$	(906	)	$	(3,370	)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash stock-based compensation	211			—			211
Non-cash interest and amortization of debt discount	105			34			139
Bad debt expense	97			102			199
Provision for inventory reserve	—			248			248
Depreciation and amortization	1,301			302			1,603
Change in fair value of warrant liabilities	1,490			—			1,490
Deferred income taxes, net	(115		)	130			15
Recognition of deferred gain from sale-leaseback transactions	(215		)	215			—
Changes in operating assets and liabilities:
Accounts receivable	(1,038		)	35			(1,003		)
Finance receivables, net	(5		)	—			(5		)
Inventory, net	(2,223		)	(490		)	(2,713		)
Prepaid expenses and other current assets	(224		)	100			(124		)
Accounts payable and accrued expenses	(3,175		)	632			(2,543		)
Deferred revenue	—			(59		)	(59		)
Income taxes payable	(10		)	7			(3		)
Net cash used in operating activities	(6,265		)	350			(5,915		)

INVESTING ACTIVITIES:
Purchase of property and equipment, including rentals	(810		)	187			(623		)
Net cash used in investing activities	(810		)	187			(623		)

FINANCING ACTIVITIES:
Cash used in retirement of common stock	(31		)	—			(31		)
Proceeds from exercise of common stock warrants	6,193			—			6,193
Repayment of capital lease obligations and long-term debt	(161		)	(537		)	(698		)
Net cash provided by financing activities	6,001			(537		)	5,464

Net decrease in cash and cash equivalents	(1,074		)	—			(1,074		)
Cash and cash equivalents at beginning of year	19,272			—			19,272
Cash and cash equivalents at end of period	$	18,198		$	—		$	18,198

The effect of the restatement on the previously filed consolidated balance sheet as of December 31, 2016 is as follows:



	As of December 31, 2016
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Assets
Current assets:
Cash and cash equivalents	$	18,034		$	—		$	18,034
Accounts receivable	6,796			96			6,892
Finance receivables, net	1,442			—			1,442
Inventory, net	4,786			(348		)	4,438
Prepaid expenses and other current assets	1,764			(87		)	1,677
Deferred income taxes	2,271			(2,271		)	—
Total current assets	35,093			(2,610		)	32,483

Non-current assets:
Finance receivables due after one year	3,956			—			3,956
Other assets	145			(1		)	144
Property and equipment, net	9,433			2,561			11,994
Deferred income taxes	25,568			(25,568		)	—
Intangibles, net	711			—			711
Goodwill	11,492			—			11,492
Total non-current assets	51,305			(23,008		)	28,297

Total assets	$	86,398		$	(25,618	)	$	60,780

Liabilities, convertible preferred stock and shareholders’ equity
Current liabilities:
Accounts payable	$	9,090		$	19		$	9,109
Accrued expenses	2,912			4,629			7,541
Line of credit, net	7,078			13			7,091
Capital lease obligations and current obligations under long-term debt	766			3,565			4,331
Income taxes payable	6			15			21
Deferred revenue	—			478			478
Deferred gain from sale-leaseback transactions	470			(470		)	—
Total current liabilities	20,322			8,249			28,571

Long-term liabilities:
Deferred income taxes	—			63			63
Capital lease obligations and long-term debt, less current portion	1,394			—			1,394
Accrued expenses, less current portion	52			—			52
Total long-term liabilities	1,446			63			1,509

Total liabilities	$	21,768		$	8,312		$	30,080
Commitments and contingencies
Convertible preferred stock:
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $18,442 at December 31, 2016	—			3,138			3,138
Shareholders’ equity:
Preferred stock, no par value, 1,800,000 shares authorized, no shares issued	—			—			—
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $18,442 at December 31, 2016	3,138			(3,138		)	—
Common stock, no par value, 640,000,000 shares authorized, 40,321,941 shares issued and outstanding at December 31, 2016	245,230			—			245,230
Accumulated deficit	(183,738		)	(33,930		)	(217,668		)
Total shareholders’ equity	64,630			(37,068		)	27,562
Total liabilities, convertible preferred stock and shareholders’ equity	$	86,398		$	(25,618	)	$	60,780

The effect of the restatement on the previously filed consolidated statement of operations for the three and six months ended December 31, 2016 is as follows:



	Three months ended December 31, 2016									Six months ended December 31, 2016
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated			As Previously Reported			Adjustments			As Restated

Revenue:
License and transaction fees	$	16,639		$	(2	)	$	16,637		$	33,004		$	(4	)	$	33,000
Equipment sales	5,117			33			5,150			10,340			16			10,356
Total revenue	21,756			31			21,787			43,344			12			43,356

Costs of sales:
Cost of services	11,389			(143		)	11,246			22,632			(287		)	22,345
Cost of equipment	4,033			63			4,096			8,211			58			8,269
Total costs of sales	15,422			(80		)	15,342			30,843			(229		)	30,614
Gross profit	6,334			111			6,445			12,501			241			12,742

Operating expenses:
Selling, general and administrative	5,793			236			6,029			12,702			799			13,501
Depreciation and amortization	307			—			307			515			—			515
Total operating expenses	6,100			236			6,336			13,217			799			14,016
Operating income (loss)	234			(125		)	109			(716		)	(558		)	(1,274		)

Other income (expense):
Interest income	200			—			200			273			—			273
Interest expense	(201		)	(317		)	(518		)	(413		)	(652		)	(1,065		)
Change in fair value of warrant liabilities	—			—			—			(1,490		)	—			(1,490		)
Total other expense, net	(1		)	(317		)	(318		)	(1,630		)	(652		)	(2,282		)

Income (loss) before income taxes	233			(442		)	(209		)	(2,346		)	(1,210		)	(3,556		)
(Provision) benefit for income taxes	—			(23		)	(23		)	115			(161		)	(46		)

Net income (loss)	233			(465		)	(232		)	(2,231		)	(1,371		)	(3,602		)
Preferred dividends	—			—			—			(334		)	—			(334		)
Net income (loss) applicable to common shares	$	233		$	(465	)	$	(232	)	$	(2,565	)	$	(1,371	)	$	(3,936	)
Net income (loss) per common share
Basic	$	0.01		$	(0.02	)	$	(0.01	)	$	(0.07	)	$	(0.03	)	$	(0.10	)
Diluted	$	0.01		$	(0.02	)	$	(0.01	)	$	(0.07	)	$	(0.03	)	$	(0.10	)
Weighted average number of common shares outstanding
Basic	40,308,934			—			40,308,934			39,398,469			—			39,398,469
Diluted	40,730,712			(421,778		)	40,308,934			39,398,469			—			39,398,469

The effect of the restatement on the previously filed consolidated statement of cash flows for the six months ended December 31, 2016 is as follows:



	Six months ended December 31, 2016
($ in thousands)	As Previously Reported			Adjustments			As Restated

OPERATING ACTIVITIES:
Net loss	$	(2,231	)	$	(1,371	)	$	(3,602	)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash stock-based compensation	445			—			445
(Gain) loss on disposal of property and equipment	(31		)	(3		)	(34		)
Non-cash interest and amortization of debt discount	26			39			65
Bad debt expense	450			(119		)	331
Provision for inventory reserve	—			480			480
Depreciation and amortization	2,564			600			3,164
Change in fair value of warrant liabilities	1,490			—			1,490
Deferred income taxes, net	(115		)	145			30
Recognition of deferred gain from sale-leaseback transactions	(430		)	430			—
Changes in operating assets and liabilities:
Accounts receivable	(2,347		)	(71		)	(2,418		)
Finance receivables, net	2,119			—			2,119
Inventory, net	(2,689		)	(714		)	(3,403		)
Prepaid expenses and other current assets	(542		)	100			(442		)
Accounts payable and accrued expenses	(3,840		)	1,140			(2,700		)
Deferred revenue	—			326			326
Income taxes payable	(12		)	15			3
Net cash used in operating activities	(5,143		)	997			(4,146		)

INVESTING ACTIVITIES:
Purchase of property and equipment, including rentals	(1,944		)	192			(1,752		)
Proceeds from sale of property and equipment	61			—			61
Net cash used in investing activities	(1,883		)	192			(1,691		)

FINANCING ACTIVITIES:
Cash used in retirement of common stock	(31		)	—			(31		)
Proceeds from exercise of common stock warrants	6,193			—			6,193
Repayment of line of credit	—			(106		)	(106		)
Repayment of capital lease obligations and long-term debt	(374		)	(1,083		)	(1,457		)
Net cash provided by financing activities	5,788			(1,189		)	4,599

Net decrease in cash and cash equivalents	(1,238		)	—			(1,238		)
Cash and cash equivalents at beginning of year	19,272			—			19,272
Cash and cash equivalents at end of period	$	18,034		$	—		$	18,034

The effect of the restatement on the previously filed consolidated balance sheet as of March 31, 2017 is as follows:



	As of March 31, 2017
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Assets
Current assets:
Cash and cash equivalents	$	17,780		$	—		$	17,780
Accounts receivable	6,734			(72		)	6,662
Finance receivables, net	2,057			92			2,149
Inventory, net	4,147			(470		)	3,677
Prepaid expenses and other current assets	1,628			(34		)	1,594
Deferred income taxes	2,271			(2,271		)	—
Total current assets	34,617			(2,755		)	31,862

Non-current assets:
Finance receivables due after one year	7,548			—			7,548
Other assets	137			94			231
Property and equipment, net	9,173			2,168			11,341
Deferred income taxes	25,359			(25,359		)	—
Intangibles, net	666			—			666
Goodwill	11,492			—			11,492
Total non-current assets	54,375			(23,097		)	31,278

Total assets	$	88,992		$	(25,852	)	$	63,140

Liabilities, convertible preferred stock and shareholders’ equity
Current liabilities:
Accounts payable	$	11,529		$	290		$	11,819
Accrued expenses	3,111			5,681			8,792
Line of credit, net	7,021			13			7,034
Capital lease obligations and current obligations under long-term debt	786			2,999			3,785
Income taxes payable	—			23			23
Deferred revenue	—			310			310
Deferred gain from sale-leaseback transactions	255			(255		)	—
Total current liabilities	22,702			9,061			31,763

Long-term liabilities:
Deferred income taxes	—			78			78
Capital lease obligations and long-term debt, less current portion	1,239			—			1,239
Accrued expenses, less current portion	52			—			52
Total long-term liabilities	1,291			78			1,369

Total liabilities	$	23,993		$	9,139		$	33,132
Commitments and contingencies
Convertible preferred stock:
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $18,775 at March 31, 2017	—			3,138			3,138
Shareholders’ equity:
Preferred stock, no par value, 1,800,000 shares authorized, no shares issued	—			—			—
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $18,775 at March 31, 2017	3,138			(3,138		)	—
Common stock, no par value, 640,000,000 shares authorized, 40,327,675 shares issued and outstanding at March 31, 2017	245,463			—			245,463
Accumulated deficit	(183,602		)	(34,991		)	(218,593		)
Total shareholders’ equity	64,999			(38,129		)	26,870
Total liabilities, convertible preferred stock and shareholders’ equity	$	88,992		$	(25,852	)	$	63,140

The effect of the restatement on the previously filed consolidated statement of operations for the three and nine months ended March 31, 2017 is as follows:



	Three months ended March 31, 2017									Nine months ended March 31, 2017
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated			As Previously Reported			Adjustments			As Restated

Revenue:
License and transaction fees	$	17,459		$	(1	)	$	17,458		$	50,463		$	(5	)	$	50,458
Equipment sales	9,001			(158		)	8,843			19,341			(142		)	19,199
Total revenue	26,460			(159		)	26,301			69,804			(147		)	69,657

Costs of sales:
Cost of services	11,876			(143		)	11,733			34,508			(430		)	34,078
Cost of equipment	7,959			267			8,226			16,170			325			16,495
Total costs of sales	19,835			124			19,959			50,678			(105		)	50,573
Gross profit	6,625			(283		)	6,342			19,126			(42		)	19,084

Operating expenses:
Selling, general and administrative	5,947			595			6,542			18,649			1,394			20,043
Depreciation and amortization	259			—			259			774			—			774
Total operating expenses	6,206			595			6,801			19,423			1,394			20,817
Operating income (loss)	419			(878		)	(459		)	(297		)	(1,436		)	(1,733		)

Other income (expense):
Interest income	114			—			114			387			—			387
Interest expense	(188		)	(369		)	(557		)	(601		)	(1,021		)	(1,622		)
Change in fair value of warrant liabilities	—			—			—			(1,490		)	—			(1,490		)
Total other expense, net	(74		)	(369		)	(443		)	(1,704		)	(1,021		)	(2,725		)

Income (loss) before income taxes	345			(1,247		)	(902		)	(2,001		)	(2,457		)	(4,458		)
(Provision) benefit for income taxes	(209		)	186			(23		)	(94		)	25			(69		)

Net income (loss)	136			(1,061		)	(925		)	(2,095		)	(2,432		)	(4,527		)
Preferred dividends	(334		)	—			(334		)	(668		)	—			(668		)
Net loss applicable to common shares	$	(198	)	$	(1,061	)	$	(1,259	)	$	(2,763	)	$	(2,432	)	$	(5,195	)
Net loss per common share
Basic	$	—		$	(0.03	)	$	(0.03	)	$	(0.07	)	$	(0.06	)	$	(0.13	)
Diluted	$	—		$	(0.03	)	$	(0.03	)	$	(0.07	)	$	(0.06	)	$	(0.13	)
Weighted average number of common shares outstanding
Basic	40,327,697			—			40,327,697			39,703,690			—			39,703,690
Diluted	40,327,697			—			40,327,697			39,703,690			—			39,703,690

The effect of the restatement on the previously filed consolidated statement of cash flows for the nine months ended March 31, 2017 is as follows:



	Nine months ended March 31, 2017
($ in thousands)	As Previously Reported			Adjustments			As Restated

OPERATING ACTIVITIES:
Net loss	$	(2,095	)	$	(2,432	)	$	(4,527	)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash stock-based compensation	678			—			678
(Gain) loss on disposal of property and equipment	(59		)	—			(59		)
Non-cash interest and amortization of debt discount	98			—			98
Bad debt expense	577			(117		)	460
Provision for inventory reserve	—			804			804
Depreciation and amortization	3,774			905			4,679
Change in fair value of warrant liabilities	1,490			—			1,490
Deferred income taxes, net	94			(48		)	46
Recognition of deferred gain from sale-leaseback transactions	(646		)	646			—
Changes in operating assets and liabilities:
Accounts receivable	(2,388		)	72			(2,316		)
Finance receivables, net	(2,113		)	(67		)	(2,180		)
Inventory, net	(2,042		)	(915		)	(2,957		)
Prepaid expenses and other current assets	(406		)	(48		)	(454		)
Accounts payable and accrued expenses	(1,239		)	2,501			1,262
Deferred revenue	—			157			157
Income taxes payable	(18		)	22			4
Net cash used in operating activities	(4,295		)	1,480			(2,815		)

INVESTING ACTIVITIES:
Purchase of property and equipment, including rentals	(2,818		)	282			(2,536		)
Proceeds from sale of property and equipment	105			—			105
Net cash used in investing activities	(2,713		)	282			(2,431		)

FINANCING ACTIVITIES:
Cash used in retirement of common stock	(31		)	—			(31		)
Proceeds from exercise of common stock warrants	6,193			—			6,193
Payment of debt issuance costs	(90		)	—			(90		)
Repayment of line of credit	—			(106		)	(106		)
Repayment of capital lease obligations and long-term debt	(556		)	(1,656		)	(2,212		)
Net cash provided by financing activities	5,516			(1,762		)	3,754

Net decrease in cash and cash equivalents	(1,492		)	—			(1,492		)
Cash and cash equivalents at beginning of year	19,272			—			19,272
Cash and cash equivalents at end of period	$	17,780		$	—		$	17,780

The effect of the restatement on the previously filed consolidated statement of operations for the three months ended June 30, 2017 is as follows:



	Three months ended June 30, 2017
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Revenue:
License and transaction fees	$	18,679		$	(3	)	$	18,676
Equipment sales	15,610			(2,507		)	13,103
Total revenue	34,289			(2,510		)	31,779

Costs of sales:
Cost of services	12,545			(103		)	12,442
Cost of equipment	14,224			(864		)	13,360
Total costs of sales	26,769			(967		)	25,802
Gross profit	7,520			(1,543		)	5,977

Operating expenses:
Selling, general and administrative	6,844			1,290			8,134
Depreciation and amortization	244			—			244
Total operating expenses	7,088			1,290			8,378
Operating income (loss)	432			(2,833		)	(2,401		)

Other income (expense):
Interest income	95			—			95
Interest expense	(291		)	(315		)	(606		)
Total other expense, net	(196		)	(315		)	(511		)

Income (loss) before income taxes	236			(3,148		)	(2,912		)
Benefit (provision) for income taxes	7			(33		)	(26		)

Net income (loss)	243			(3,181		)	(2,938		)
Preferred dividends	—			—			—
Net income (loss) applicable to common shares	$	243		$	(3,181	)	$	(2,938	)
Net income (loss) per common share
Basic	$	0.01		$	(0.08	)	$	(0.07	)
Diluted	$	0.01		$	(0.08	)	$	(0.07	)
Weighted average number of common shares outstanding
Basic	40,331,993			—			40,331,993
Diluted	40,772,482			(440,489		)	40,331,993

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Jun. 30, 2019
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTS On July 19, 2019, the Company entered into a lease for approximately 16,713 square feet of office space in Denver, Colorado. The lease is for a period of 89 months, and commenced on August 1, 2019. The Company's monthly base rent for the premises, which is payable from January 1, 2020, will initially be approximately $45 thousand, and will increase each year up to a maximum monthly base rent of approximately $53 thousand. The Company intends to consolidate its Portland and San Francisco office into this new office location.

VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Jun. 30, 2019

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

VALUATION AND QUALIFYING ACCOUNTS

SCHEDULE II

USA TECHNOLOGIES, INC.

VALUATION AND QUALIFYING ACCOUNTS

YEARS ENDED JUNE 30, 2019, 2018, AND 2017

($ in thousands)



ACCOUNTS RECEIVABLE RESERVE	Balance at beginning of period		Additions charged to bad debt expense		Deductions and other			Balance at end of period
June 30, 2019	$	2,754	$	1,940	$	172		$	4,866
June 30, 2018	$	3,199	$	471	$	(916	)	$	2,754
June 30, 2017	$	3,071	$	538	$	(410	)	$	3,199



FINANCE RECEIVABLES RESERVE	Balance at beginning of period		Additions charged to bad debt expense		Deductions and other			Balance at end of period
June 30, 2019	$	12	$	594	$	—		$	606
June 30, 2018	$	19	$	—	$	(7	)	$	12
June 30, 2017	$	—	$	19	$	—		$	19



INVENTORY RESERVE	Balance at beginning of period		Additions		Deductions			Balance at end of period
June 30, 2019	$	3,217	$	3,172	$	(498	)	$	5,891
June 30, 2018	$	2,204	$	1,467	$	(454	)	$	3,217
June 30, 2017	$	1,525	$	877	$	(198	)	$	2,204



DEFERRED TAX ASSET VALUATION ALLOWANCE	Balance at beginning of period		Additions		Deductions - JOBS Act			Deductions - Cantaloupe Acquisition			Balance at end of period
June 30, 2019	$	36,194	$	6,077	$	—		$	—		$	42,271
June 30, 2018	$	55,156	$	3,737	$	(19,574	)	$	(3,125	)	$	36,194
June 30, 2017	$	52,967	$	2,189	$	—		$	—		$	55,156

ACCOUNTING POLICIES (Policies)	12 Months Ended
ACCOUNTING POLICIES (Policies)	Jun. 30, 2019
Accounting Policies [Abstract]
CONSOLIDATION	CONSOLIDATION The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
USE OF ESTIMATES	USE OF ESTIMATES The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) 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 AND CASH EQUIVALENTS	CASH AND CASH EQUIVALENTS Cash equivalents represent all highly liquid investments with original maturities of three months or less from time of purchase. Cash equivalents are comprised of money market funds. The Company maintains its cash in bank deposit accounts where accounts may exceed federally insured limits at times.
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS	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 probable incurred 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, and 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	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 (“FASB”) 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 net of allowance of credit losses when management determines that it is probable a loss has been incurred. Finance receivables are charged off against the allowance for credit losses when management determines that the finance receivables are uncollectible 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, NET Inventory consists of finished goods. The company's inventories are valued at the lower of cost or net realizable value, generally using a weighted-average cost method. The Company establishes allowances for obsolescence of inventory based upon quality considerations and assumptions about future demand and market conditions.
PROPERTY AND EQUIPMENT, NET	PROPERTY AND EQUIPMENT, NET Property and equipment are recorded at either cost or, in the instance of an acquisition, the estimated fair value on the date of the acquisition, and are depreciated on a 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 and are included in “Depreciation and amortization" in the Consolidated Statements of Operations. Additions and improvements that extend the estimated lives of the assets are capitalized, while expenditures for repairs and maintenance are expensed as incurred.
GOODWILL AND INTANGIBLE ASSETS	GOODWILL AND INTANGIBLE ASSETS The Company’s 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. We test goodwill for impairment by comparing the fair value of our reporting unit to its carrying value using a market approach. An impairment charge is recognized for the amount by which, if any, the carrying value exceeds the reporting unit’s fair value. However, the loss recognized cannot exceed the reporting unit’s goodwill balance. The Company has selected April 1 as its annual test date. The Company has concluded there has been no impairment of goodwill during the years ended June 30, 2019, 2018, or 2017. The Company's intangible assets include trademarks, non-compete agreements, brand, developed technology, customer relationships and tradenames and were acquired in a purchase business combination. The Company carries these intangibles at cost, less accumulated amortization. Amortization is recorded on a straight-line basis over the estimated useful lives of the respective assets, which span between three and eighteen years, and are included in “Depreciation and amortization" in the Consolidated Statements of Operations.
LONG-LIVED ASSETS	LONG-LIVED ASSETS In accordance with ASC 360, “Impairment or Disposal of Long-Lived Assets”, the Company reviews its definite lived long-lived assets whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. If the carrying amount of an asset or group of assets exceeds its net realizable value, the asset will be written down to its fair value. In the period when the plan of sale criteria of ASC 360 are met, definite lived long-lived assets are reported as held for sale, depreciation and amortization cease, and the assets are reported at the lower of carrying value or fair value less costs to sell. The Company has concluded that the carrying amount of definite lived long-lived assets is recoverable as of June 30, 2019 and 2018.
FAIR VALUE OF FINANCIAL INSTRUMENTS	FAIR VALUE OF FINANCIAL INSTRUMENTS 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.
CONCENTRATION OF RISKS	CONCENTRATION OF RISKS Concentration of revenue with customers subject the Company to operating risks. Approximately 17%, 16% and 25% of the Company’s revenue for the years ended June 30, 2019, 2018 and 2017, respectively, were concentrated with one customer. The Company’s customers are principally located in the United States.
REVENUE RECOGNITION	REVENUE RECOGNITION On July 1, 2018, the Company adopted Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers using the modified retrospective transition method to all open contracts with customers that were not completed as of June 30, 2018. Results for reporting periods beginning after July 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic revenue recognition methodology under ASC 605. Revenue Recognition Under ASC 605 (Periods Prior to July 1, 2018) Revenue from the sale of QuickStart lease of equipment is recognized on the terms of free-on-board shipping point. 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. 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 utilizes its best estimate of selling price when calculating the revenue to be recorded under these leases. The QuickStart contracts qualify for sales type lease accounting. At lease inception, the Company recognizes revenue and creates a finance receivable in an amount that represents the present value of minimum lease payments. Accordingly, a portion of the lease payments are recognized as interest income. At the end of the lease period, the customer would have the option to purchase the device at its residual value. Any customer payments received in advance and prior to the Company satisfying any performance obligations are recorded as deferred revenue and amortized as revenue is recognized. Equipment Rental The Company offers its customers a rental program for its hardware devices, the JumpStart program (“JumpStart”). JumpStart terms are typically 36 months and are cancellable with 30 to 60 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. Costs for the JumpStart revenue, which consist of depreciation expense on the JumpStart equipment, are included in cost of services in the Consolidated Statements of Operations. Equipment utilized by the JumpStart program is included in property and equipment, net on the Consolidated Balance Sheets. Revenue Recognition Under ASC 606 (Periods Subsequent to July 1, 2018) The new revenue recognition guidance provides a single model to determine when and how revenue is recognized. The core principle of the new guidance is that an entity should recognize revenue to depict the transfer of control of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company recognizes revenue using a five-step model resulting in revenue being recognized as performance obligations within a contract have been satisfied. The steps within that model include: (i) identifying the existence of a contract with a customer; (ii) identifying the performance obligations within the contract; (iii) determining the contract’s transaction price; (iv) allocating the transaction price to the contract’s performance obligations; and, (v) recognizing revenue as the contract’s performance obligations are satisfied. Judgment is required to apply the principles-based, five-step model for revenue recognition. Management is required to make certain estimates and assumptions about the Company’s contracts with its customers, including, among others, the nature and extent of its performance obligations, its transaction price amounts and any allocations thereof, the events which constitute satisfaction of its performance obligations, and when control of any promised goods or services is transferred to its customers. The new standard also requires certain incremental costs incurred to obtain or fulfill a contract to be deferred and amortized on a systematic basis consistent with the transfer of goods or services to the customer. The Company provides an end-to-end payment solution which integrates hardware, software, and payment processing in the self-service retail market. The Company has contractual agreements with customers that set forth the general terms and conditions of the relationship, including pricing of goods and services, payment terms and contract duration. Revenue is recognized when the obligation under the terms of the Company’s contract with its customer is satisfied and is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. The foundation of the Company’s business model is to act as the Merchant of Record for its sellers. We provide cashless vending payment services in exchange for monthly service fees, in addition to collecting usage-based consideration for completed transactions. The contracts we enter into with third-party suppliers provide us with the right to access and direct their services when processing a transaction. The Company combines the services provided by third-party suppliers to enable customers to accept cashless payment transactions, indicating that it controls all inputs in directing their use to create the combined service. Additionally, USAT sells cashless payment devices (e.g., e-Ports, Seed), which are either directly sold or leased through the Company's QuickStart or JumpStart programs. Cashless vending services represent a single performance obligation as the combination of the services provided gives the customer the ability to accept cashless payments. The Company’s customers are contracting for integrated cashless services in connection with purchasing or leasing unattended point-of-sale devices. The activities when combined together are so integral to the customer’s ability to derive benefit from the service, that the activities are effectively inputs to a single promise to the customer. Certain services are distinct, but are not accounted for separately as the rights are coterminous, they are transferred concurrently and the outcome is the same as accounting for the services as individual performance obligations. The single performance obligation is determined to be a stand-ready obligation to process payments whenever a consumer intends to make a purchase at a point-of-sale device. As the Company is unable to predict the timing and quantity of transactions to be processed, the assessment of the nature of the performance obligation is focused on each time increment rather than the underlying activity. Therefore, cashless vending services are viewed to comprise a series of distinct days of service that are substantially the same and have the same pattern of transfer to the customer. As a result, the promise to stand ready is accounted for as a single performance obligation. Revenue related to cashless vending services is recognized over the period in which services are provided, with usage-based revenue recognized as transactions occur. Consideration for this service includes fixed fees for standing ready to process transactions, and generally also includes usage-based fees, priced as a percentage of transaction value and/or a specified fee per transaction processed. The total transaction price of usage-based services is determined to be variable consideration as it is based on unknown quantities of services to be performed over the contract term. The underlying variability is satisfied each day the service is performed and provided to the customer. Clients are billed for cashless vending services on a monthly basis and for transaction processing as transactions occur. Payment is due based on the Company’s standard payment terms which is typically within 30 to 60 days of invoice issuance. Equipment sales represent a separate performance obligation, the majority of which is satisfied at a point in time through outright sales or sales-type leases (ASC 840) when the equipment is delivered to the customer. Revenues related to JumpStart equipment are recognized over time as the customer obtains the right to use the equipment through an operating leases. Clients are billed for equipment sales on a monthly basis, with payment due based on the Company’s standard payment terms which is typically within 30 to 60 days of invoice issuance. USAT will occasionally offer volume discounts, rebates or credits on certain contracts, which is considered variable consideration. USAT uses either the most-likely or estimated value method to estimate the amount of the consideration, based on what the Company expects to better predict the amount of consideration to which it will be entitled to on a contract-by-contract basis. The Company will qualitatively assess if the variable consideration should be constrained to prevent possible significant reversal of revenue, as applicable. The Company assesses the goods and/or services promised in each customer contract and separately identifies a performance obligation for each promise to transfer to the customer a distinct good or service. The Company then allocates the transaction price to each performance obligation in the contract using relative standalone selling prices. The Company determines standalone selling prices based on the price at which a good or service is sold separately. If the standalone selling price is not observable through historic data, the Company estimates the standalone selling price by considering all reasonably available information, including market data, trends, as well as other company- or customer-specific factors. The Company recognizes fees charged to our customers primarily on a gross basis as transaction revenue when we are the principal in respect of completing a payment transaction. As a principal to the transaction, when we are the Merchant of Record, we control the service of completing payments for our customers through the payment ecosystem. The fees paid to payment processors and other financial institutions are recognized as transaction expense. For certain transactions in which we act in the capacity as an agent, these transactions are recorded on a net basis. These are transactions in which we are not the Merchant of Record, and the customer is entering into a separate arrangement with a third party payment processor for the fulfillment of the payment service.
EQUIPMENT RENTAL	Equipment Rental The Company offers its customers a rental program for its hardware devices, the JumpStart program (“JumpStart”). JumpStart terms are typically 36 months and are cancellable with 30 to 60 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. Costs for the JumpStart revenue, which consist of depreciation expense on the JumpStart equipment, are included in cost of services in the Consolidated Statements of Operations. Equipment utilized by the JumpStart program is included in property and equipment, net on the Consolidated Balance Sheets.
WARRANTY COSTS	Warranties and Returns The Company offers standard warranties that provide the customer with assurance that its equipment will function in accordance with contract specifications. The Company's standard warranties are not sold separately, but are included with each customer purchase. Warranties are not considered separate performance obligations and, therefore, are estimated and recorded at the time of sale. The Company estimates an allowance for equipment returns at the date of sale on a monthly basis. The estimate of expected returns is calculated in the same way as other variable consideration. The expected value method is generally used to predict the amount of consideration to which the Company will be entitled.
SHIPPING AND HANDLING	SHIPPING AND HANDLING Shipping and handling fees billed to our customers in connection with sales are recorded as revenue. The costs incurred for shipping and handling of our product are recorded as cost of equipment.
ADVERTISING	ADVERTISING Advertising costs are expensed as incurred.
RESEARCH AND DEVELOPMENT EXPENSES	RESEARCH AND DEVELOPMENT EXPENSES Research and development expenses are expensed as incurred and primarily consist of personnel, contractors and product development costs. Research and development expenses, which are included in selling, general and administrative expenses in the Consolidated Statements of Operations, were approximately $4.6 million, $1.3 million and $1.4 million, for the fiscal years ended June 30, 2019, 2018, and 2017, 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.
SOFTWARE DEVELOPMENT COSTS	SOFTWARE DEVELOPMENT COSTS We capitalize qualifying internally-developed software development costs incurred during the application development stage, as long as it is probable the project will be completed, and the software will be used to perform the function intended. Capitalization of such costs ceases once the project is substantially complete and ready for its intended use. Capitalized software development costs are included in “Property and equipment, net” on our consolidated balance sheets and are amortized on a straight-line basis over their expected useful lives
ACCOUNTING FOR EQUITY AWARDS	ACCOUNTING FOR EQUITY AWARDS In accordance with ASC 718, the cost of employee services received in exchange for an award of equity instruments is based on the grant-date fair value of the award and allocated over the requisite service period of the award. These costs are recorded in selling, general and administrative expenses.
LOSS CONTINGENCIES	LOSS CONTINGENCIES 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 statements 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	INCOME TAXES 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 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 to be recognized. The Company recognizes interest and penalties, if any, related to uncertain tax positions in selling, general and administrative expenses. Interest and penalties related to uncertain tax positions incurred during the fiscal years ended June 30, 2019, 2018 and 2017 were immaterial. The Company files income tax returns in the United States federal jurisdiction and various state jurisdictions. The tax years ended June 30, 2016 through June 30, 2019 remain open to examination by taxing jurisdictions to which the Company is subject. While the statute of limitations has expired for years prior to the year ended June 30, 2016, changes in reported losses for those years could be made examination by tax authorities to the extent that operating loss carryforwards from those prior years impact upon taxable income in current years.
EARNINGS (LOSS) PER COMMON SHARE	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, 2019, 2018 and 2017 no effect for common stock equivalents was considered in the calculation of diluted earnings (loss) per share because their effect was anti-dilutive.
RECENT ACCOUNTING PRONOUNCEMENTS	RECENT ACCOUNTING PRONOUNCEMENTS Accounting pronouncements adopted In January 2017, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update No. 2017-04, Intangibles – Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment ("ASU 2017-04"), which eliminates Step 2 from the goodwill impairment test. Under ASU 2017-04, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. ASU 2017-04 is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. We early adopted ASU 2017-04 for impairment tests to be performed on testing dates after July 1, 2017, which did not impact our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting, which modifies the accounting for certain aspects of share-based payments to employees. The new guidance requires excess tax benefits and tax deficiencies to be recorded in the income statement when stock awards vest or are settled. In addition, cash flows related to excess tax benefits are to be separately classified as an operating activity apart from other income tax cash flows. The standard also allows the Company to repurchase more of an employee’s vested shares for tax withholding purposes without triggering liability accounting, and clarifies that all cash payments made to tax authorities on an employee’s behalf for withheld shares should be presented as a financing activity on the statement of cash flows. The Company adopted this standard as of July 1, 2017. The primary impact of adoption was the recognition of excess tax benefits in the Company's provision for income taxes which is applied prospectively starting July 1, 2017 in accordance with the guidance. Adoption of the new standard resulted in the recognition of $31 thousand of excess tax benefits in the Company's provision for income taxes for the year ended June 30, 2018. Through June 30, 2017 excess tax benefits were reflected as a reduction of deferred tax assets via reducing actual operating loss carryforwards because such benefits had not reduced income taxes payable. Under the new standard the treatment of excess tax benefits changed and the cumulative excess tax benefits as of June 30, 2017 amounting to $67 thousand were credited to accumulated deficit. The adoption of ASU No. 2016-09 did not impact our statement of cash flows for the fiscal year ended June 30, 2018. In March 2018, the FASB issued ASU No. 2018-05, "Income Taxes (Topic 740), Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118." The standard adds guidance to ASC 740, Income Taxes, that contain SEC guidance related to SAB 118. The standard is effective upon issuance. Refer to Note 15 for further information regarding the impact of the standard. In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805), Clarifying the Definition of a Business.” ASU 2017-01 provides guidance in ascertaining whether a collection of assets and activities is considered a business. The Company adopted this standard as of July 1, 2018, and its adoption did not have a material effect on the Company’s consolidated financial statements. In May 2017, the FASB issued ASU No. 2017-09, “Compensation - Stock Compensation (Topic 718), Scope of Modification Accounting.” The standard provides guidance about which changes to the terms or conditions of a share-based payment award require modification accounting, which may result in a different fair value for the award. The Company adopted this standard as of July 1, 2018, and it will be applied prospectively to awards modified on or after the adoption date. Its adoption did not have a material effect on the Company's consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments.” The new guidance makes eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. The Company adopted this standard as of July 1, 2018 on a retrospective basis, and its adoption did not have a material effect on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606) (“the New Standard”). The New Standard 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 Company adopted the New Standard on July 1, 2018, using the modified retrospective method applied to those contracts which were not completed as of July 1, 2018. Results for reporting periods beginning after July 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historic revenue recognition methodology under ASC 605. Refer to Note 5 for further discussion. In July 2015, the FASB issued ASU 2015-11, “Inventory,” which simplifies the measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value. The Company early adopted this guidance during fiscal year 2017, and its adoption did not have a material effect on the Company's consolidated financial statements. In September 2015, the FASB issued ASU 2015-16, “Simplifying the Accounting for Measurement Period Adjustments”, which requires that the acquirer in a business combination recognize adjustments to provisional purchase accounting amounts that are identified during the measurement period in the reporting period in which the purchase accounting adjustment is determined. The Company adopted this standard during the first quarter of fiscal 2017, and its adoption did not have a material effect on the Company's consolidated financial statements. In November 2015, the FASB issued ASU 2015‑17, "Balance Sheet Classification of Deferred Taxes", 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 Company early adopted this guidance for fiscal year 2017 on a prospective basis. As a result of the adoption, $2.3 million of deferred tax assets were reclassified from current to noncurrent assets as of June 30, 2016. Accounting pronouncements to be adopted 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 February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," which will require, among other items, lessees to recognize a right of use asset and a related lease liability for most leases on the balance sheet. Qualitative and quantitative disclosures will be enhanced to better understand the amount, timing and uncertainty of cash flows arising from leases. The Company adopted this new guidance on July 1, 2019, using the optional modified retrospective transition method. The Company expects the adoption to result in gross up on its consolidated balance sheets from the recognition of assets and liabilities arising out of operating leases. The Company will recognize assets for the right to use the underlying leased property during the lease term and will recognize liabilities for the corresponding financial obligation to make lease payments to the lessor. The Company plans to elect the transition package of practical expedients permitted within the standard, which eliminates the requirements to reassess prior conclusions about lease identification, lease classification, and initial direct costs. The Company is substantially complete with the evaluation of the impact on the consolidated financial statements of adopting the new lease standard and does not anticipate a material impact on the consolidated statements of operations, shareholders’ equity, and cash flows or to retained earnings. Additionally, the Company does not anticipate the adoption of the standard will impact any debt covenants or result in significant changes to the internal processes, including the internal control over financial reporting. The Company’s operating leases primarily comprise of office facilities, with the most significant leases relating to corporate headquarters in Malvern, Pennsylvania and an office in San Francisco, California. The Company is in the process of finalizing changes to its systems and processes in conjunction with its review of lease agreements and will disclose the actual impact of adopting ASU 2016-02 in its interim report on Form 10-Q for the quarter ended September 30, 2019. In July 2018, the FASB issued ASU No. 2018-09, “Codification Improvements”. These amendments provide clarifications and corrections to certain ASC subtopics including “Compensation - Stock Compensation - Income Taxes” (Topic 718-740), “Business Combinations - Income Taxes” (Topic 805-740) and “Fair Value Measurement - Overall” (Topic 820-10). The majority of the amendments in ASU 2018-09 will be effective in annual periods beginning after December 15, 2018. The Company is currently evaluating and assessing the impact this guidance will have on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326).” The new guidance requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This pronouncement will be effective for fiscal years beginning after December 15, 2019. Early adoption of the guidance is permitted for fiscal years beginning after December 15, 2018.The Company is currently evaluating and assessing the impact this guidance will have on its consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, “Compensation - Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting.” The standard simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under the ASU, most of the guidance on such payments to nonemployees would be aligned with the requirements for share-based payments granted to employees. The changes take effect for public companies for fiscal years starting after December 15, 2018, including interim periods within that fiscal year. The Company expects that the adoption of this ASU would not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, “Intangibles—Goodwill and Other (Topic 350): Internal-Use Software.” This standard aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, which means that it will be effective for us in the first quarter of our fiscal year beginning July 1, 2020. The Company is currently evaluating and assessing the impact this guidance will have on its consolidated financial statements.

RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS (Tables)

12 Months Ended

Jun. 30, 2019

Accounting Changes and Error Corrections [Abstract]

RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS

A summary of the impact of these matters on income (loss) before taxes is presented below:



($ in thousands)	Increase / (Decrease) Restatement Impact
	Year ended June 30, 2017
Audit Committee Investigation-related Adjustments:
Revenue	$	(2,568	)
Costs of sales	$	(1,163	)
Gross profit	$	(1,405	)
Operating income (loss)	$	(1,405	)
Loss before income taxes	$	(1,405	)

Significant Account and Transaction Review and Other:
Revenue	$	(89	)
Costs of sales	$	91
Gross profit	$	(180	)
Operating income (loss)	$	(2,864	)
Loss before income taxes	$	(4,200	)

A summary of the impact of these matters on the consolidated balance sheet is presented below, excluding any tax effect from the restatement adjustments in the aggregate:



($ in thousands)	Increase / (Decrease) Restatement Impact
	As of June 30, 2017
Audit Committee Investigation-related Adjustments:
Accounts receivable	$	(284	)
Finance receivables, net	$	(1,267	)
Inventory, net	$	1,106
Prepaid expenses and other current assets	$	25
Other assets	$	88
Accounts payable	$	270
Accrued expenses	$	803

Significant Account and Transaction Review and Other:
Accounts receivable	$	(75	)
Inventory, net	$	(500	)
Prepaid expenses and other current assets	$	(114	)
Other assets	$	(456	)
Property and equipment, net	$	(1,000	)
Accounts payable	$	21
Accrued expenses	$	7,235
Capital lease obligation and current obligations under long-term debt	$	(32	)
Deferred revenue	$	(27	)
Deferred gain from sale-leaseback transactions	$	(239	)
Deferred gain from sale-leaseback transactions, less current portion	$	(100	)

The effect of the restatement on the previously filed consolidated balance sheet as of June 30, 2017 is as follows:



	As of June 30, 2017
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Assets
Current assets:
Cash and cash equivalents	$	12,745		$	—		$	12,745
Accounts receivable	7,193			(359		)	6,834
Finance receivables, net	11,010			(1,267		)	9,743
Inventory, net	4,586			606			5,192
Prepaid expenses and other current assets	968			(89		)	879
Total current assets	36,502			(1,109		)	35,393

Non-current assets:
Finance receivables due after one year	8,607			—			8,607
Other assets	687			(368		)	319
Property and equipment, net	12,111			(1,000		)	11,111
Deferred income taxes	27,670			(27,670		)	—
Intangibles, net	622			—			622
Goodwill	11,492			—			11,492
Total non-current assets	61,189			(29,038		)	32,151

Total assets	$	97,691		$	(30,147	)	$	67,544

Liabilities, convertible preferred stock and shareholders’ equity
Current liabilities:
Accounts payable	$	16,054		$	291		$	16,345
Accrued expenses	4,130			7,743			11,873
Line of credit, net	7,036			—			7,036
Capital lease obligations and current obligations under long-term debt	3,230			(32		)	3,198
Income taxes payable	10			—			10
Deferred revenue	—			268			268
Deferred gain from sale-leaseback transactions	239			(239		)	—
Total current liabilities	30,699			8,031			38,730

Long-term liabilities:
Deferred income taxes	—			94			94
Capital lease obligations and long-term debt, less current portion	1,061			—			1,061
Accrued expenses, less current portion	53			—			53
Deferred gain from sale-leaseback transactions, less current portion	100			(100		)	—
Total long-term liabilities	1,214			(6		)	1,208

Total liabilities	$	31,913		$	8,025		$	39,938
Commitments and contingencies
Convertible preferred stock:
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $18,775 at June 30, 2017	—			3,138			3,138
Shareholders’ equity:
Preferred stock, no par value, 1,800,000 shares authorized, no shares issued	—			—			—
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $18,775 at June 30, 2017	3,138			(3,138		)	—
Common stock, no par value, 640,000,000 shares authorized, 40,331,645 shares issued and outstanding at June 30, 2017	245,999			—			245,999
Accumulated deficit	(183,359		)	(38,172		)	(221,531		)
Total shareholders’ equity	65,778			(41,310		)	24,468
Total liabilities, convertible preferred stock and shareholders’ equity	$	97,691		$	(30,147	)	$	67,544

The effect of the restatement on the previously filed consolidated statement of operations for the year ended June 30, 2017 is as follows:



	Year ended June 30, 2017
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Revenue:
License and transaction fees	$	69,142		$	(8	)	$	69,134
Equipment sales	34,951			(2,649		)	32,302
Total revenue	104,093			(2,657		)	101,436

Costs of sales:
Cost of services	47,053			(533		)	46,520
Cost of equipment	30,394			(539		)	29,855
Total costs of sales	77,447			(1,072		)	76,375
Gross profit	26,646			(1,585		)	25,061

Operating expenses:
Selling, general and administrative	25,493			2,684			28,177
Depreciation and amortization	1,018			—			1,018
Total operating expenses	26,511			2,684			29,195
Operating income (loss)	135			(4,269		)	(4,134		)

Other income (expense):
Interest income	482			—			482
Interest expense	(892		)	(1,336		)	(2,228		)
Change in fair value of warrant liabilities	(1,490		)	—			(1,490		)
Total other expense, net	(1,900		)	(1,336		)	(3,236		)

Loss before income taxes	(1,765		)	(5,605		)	(7,370		)
Provision for income taxes	(87		)	(8		)	(95		)

Net loss	(1,852		)	(5,613		)	(7,465		)
Preferred dividends	(668		)	—			(668		)
Net loss applicable to common shares	$	(2,520	)	$	(5,613	)	$	(8,133	)
Net loss per common share
Basic	$	(0.06	)	$	(0.14	)	$	(0.20	)
Diluted	$	(0.06	)	$	(0.14	)	$	(0.20	)
Weighted average number of common shares outstanding
Basic	39,860,335			—			39,860,335
Diluted	39,860,335			—			39,860,335

The effect of the restatement on the previously filed consolidated statement of cash flows for the year ended June 30, 2017 is as follows:



	Year ended June 30, 2017
($ in thousands)	As Previously Reported			Adjustments			As Restated

OPERATING ACTIVITIES:
Net loss	$	(1,852	)	$	(5,613	)	$	(7,465	)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash stock-based compensation	1,214			—			1,214
(Gain) loss on disposal of property and equipment	(177		)	—			(177		)
Non-cash interest and amortization of debt discount	113			—			113
Bad debt expense	764			(207		)	557
Provision for inventory reserve	—			877			877
Depreciation and amortization	5,591			365			5,956
Change in fair value of warrant liabilities	1,490			—			1,490
Deferred income taxes, net	54			8			62
Recognition of deferred gain from sale-leaseback transactions	(560		)	560			—
Changes in operating assets and liabilities:
Accounts receivable	(2,988		)	450			(2,538		)
Finance receivables, net	(12,119		)	1,287			(10,832		)
Inventory, net	(2,399		)	(2,064		)	(4,463		)
Prepaid expenses and other current assets	(304		)	457			153
Accounts payable and accrued expenses	4,410			4,464			8,874
Deferred revenue	—			115			115
Income taxes payable	(8		)	—			(8		)
Net cash used in operating activities	(6,771		)	699			(6,072		)

INVESTING ACTIVITIES:
Purchase of property and equipment, including rentals	(4,041		)	254			(3,787		)
Proceeds from sale of property and equipment	348			—			348
Net cash used in investing activities	(3,693		)	254			(3,439		)

FINANCING ACTIVITIES:
Cash used in retirement of common stock	(31		)	—			(31		)
Proceeds from exercise of common stock warrants	6,193			—			6,193
Payment of debt issuance costs	(90		)	—			(90		)
Repayment of line of credit	(106		)	—			(106		)
Repayment of capital lease obligations and long-term debt	(2,029		)	(953		)	(2,982		)
Net cash provided by financing activities	3,937			(953		)	2,984

Net decrease in cash and cash equivalents	(6,527		)	—			(6,527		)
Cash and cash equivalents at beginning of year	19,272			—			19,272
Cash and cash equivalents at end of year	$	12,745		$	—		$	12,745

ACQUISITION (Tables)

12 Months Ended

Jun. 30, 2019

Business Combinations [Abstract]

Fair value of purchase price consideration

The fair value of the purchase price consideration consisted of the following:



($ in thousands)
Cash consideration, net of cash acquired	$	65,181
USAT shares issued as stock consideration (As Restated)	23,279
Post-closing adjustment for working capital	(253		)
Total consideration (As Restated)	$	88,207

Schedule of fair values of the assets acquired and liabilities assumed

The following table summarizes the fair value of total consideration transferred to the holders of all the outstanding equity interests of Cantaloupe at the acquisition date of November 9, 2017:



($ in thousands)	November 9, 2017 (As Restated)
Accounts receivable	$	2,921
Finance receivables	1,480
Inventory	282
Prepaid expense and other current assets	646
Finance receivables due after one year	3,603
Other assets	50
Property and equipment	2,234
Intangible assets	30,800
Total assets acquired	42,016
Accounts payable	(1,591		)
Accrued expenses	(2,401		)
Deferred revenue	(518		)
Capital lease obligations and current obligations under long-term debt	(666		)
Capital lease obligations and long-term debt, less current portion	(1,134		)
Deferred income tax liabilities	(157		)
Total identifiable net assets	35,549
Goodwill	52,658
Total fair value	$	88,207

Material non-recurring pro forma adjustments

Other material non-recurring adjustments are reflected in the pro forma and described below:



	Year ended June 30,
($ in thousands, except per share data)	2018			2017 (As Restated)

Revenue	$	140,575		$	121,373
Net loss attributable to USAT	(7,256		)	(13,828		)
Net loss attributable to USAT common shares	$	(7,924	)	$	(14,496	)
Net loss per share:
Basic	$	(0.15	)	$	(0.27	)
Diluted	$	(0.15	)	$	(0.27	)
Weighted average number of common shares outstanding:
Basic	53,717,133			52,849,217
Diluted	53,717,133			52,849,217

REVENUE (Tables)

12 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

Schedule of Adoption of ASC 606

The effect of adoption of this new guidance on the Consolidated Balance Sheet as of July 1, 2018 was to increase prepaid expenses and other current assets, other assets, and deferred revenue, with an offsetting decrease in the opening accumulated deficit, as follows:



	June 30, 2018					July 1, 2018
($ in thousands)	As Reported			Adjustment		Revised

ASSETS
Prepaid expenses and other current assets	$	929		$	251	$	1,180
Other assets	720			1,254		1,974
LIABILITIES
Deferred revenue	511			1,127		1,638
SHAREHOLDERS' EQUITY
Accumulated deficit	(232,748		)	376		(232,372		)



	June 30, 2019						June 30, 2019
($ in thousands)	As Reported			Adjustment			Under Legacy Guidance

BALANCE SHEET
Prepaid expenses and other current assets	$	1,558		$	(301	)	$	1,257
Other assets	2,099			(1,506		)	593
Deferred revenue	1,539			(929		)	610
Accumulated deficit	(264,400		)	(878		)	(265,278		)
STATEMENT OF OPERATIONS
License and transaction fees	123,554			(198		)	123,356
Selling, general and administrative	47,068			303			47,371
Net loss	(32,028		)	(500		)	(32,528		)

Performance Obligations

The following table reflects the estimated fees to be recognized in the future related to performance obligations that are unsatisfied at the end of the period:



($ in thousands)	As of June 30, 2019

2020	$	12,093
2021	10,271
2022	8,643
2023	5,990
2024 and thereafter	1,942
Total	$	38,939

Contract Liability

The Company's contract liability (i.e., deferred revenue) balances are as follows:



	Year ended June 30,
($ in thousands)	2019

Deferred revenue, beginning of the period	$	511
Plus: adjustment for adoption of ASC 606	1,127
Deferred revenue, beginning of the period, as adjusted	1,638
Deferred revenue, end of the period	1,539
Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period	320

RESTRUCTURING/INTEGRATION COSTS (Tables)

12 Months Ended

Jun. 30, 2019

Restructuring and Related Activities [Abstract]

Schedule of Workforce Reduction Activity

The following table summarizes the Company's workforce reduction activity for the years ended June 30, 2019 and June 30, 2018:



($ in thousands)	Workforce reduction
Balance at July 1, 2017	$	—
Plus: additions	2,122
Less: cash payments	(1,102		)
Balance at June 30, 2018	1,020
Plus: additions	266
Less: cash payments	(1,111		)
Balance at June 30, 2019	$	175

LOSS PER SHARE CALCULATION (Tables)

12 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

Schedule of basic and diluted loss per share

The calculation of basic and diluted loss per share is presented below:



	Year ended June 30,
($ in thousands, except per share data)	2019			2018			2017 (As Restated)

Numerator for basic and diluted loss per share
Net loss	$	(32,028	)	$	(11,284	)	$	(7,465	)
Preferred dividends	(668		)	(668		)	(668		)
Net loss available to common shareholders	$	(32,696	)	$	(11,952	)	$	(8,133	)

Denominator for basic loss per share - Weighted average shares outstanding	60,061,243			51,840,518			39,860,335
Effect of dilutive potential common shares	—			—			—
Denominator for diluted loss per share - Adjusted weighted average shares outstanding	60,061,243			51,840,518			39,860,335

Basic loss per share	$	(0.54	)	$	(0.23	)	$	(0.20	)
Diluted loss per share	$	(0.54	)	$	(0.23	)	$	(0.20	)

FINANCE RECEIVABLES (Tables)

12 Months Ended

Jun. 30, 2019

Receivables [Abstract]

Schedule of finance receivables

As of June 30, 2019 and 2018, finance receivables consist of the following:



	As of June 30,
($ in thousands)	2019		2018

Finance receivables, net	$	6,260	$	4,603
Finance receivables due after one year, net	11,596		13,246
Total finance receivables, net of allowance of $606 and $12, respectively	$	17,856	$	17,849

Schedule of credit quality indicators

At June 30, 2019 and 2018, credit quality indicators consisted of the following:



	As of June 30,
($ in thousands)	2019		2018

Performing	$	17,856	$	17,849
Nonperforming	606		12
Gross finance receivables	$	18,462	$	17,861

Schedule of age analysis of finance receivables

An aged analysis of the Company's finance receivables as of June 30, 2019 and 2018 is as follows:



	As of June 30,
($ in thousands)	2019		2018

Current	$	17,506	$	17,609
30 days and under past due	200		56
31 - 60 days past due	43		7
61 - 90 days past due	145		56
Greater than 90 days past due	568		133
Total finance receivables	$	18,462	$	17,861

Schedule of financing receivable

Finance receivables due for each of the fiscal years following June 30, 2019 are as follows:



($ in thousands)

2020	$	6,584
2021	4,041
2022	3,833
2023	2,635
2024	1,133
Thereafter	236
Total	$	18,462

PROPERTY AND EQUIPMENT, NET (Tables)

12 Months Ended

Jun. 30, 2019

Property, Plant and Equipment [Abstract]

Schedule of property and equipment

Property and equipment consisted of the following:



		As of June 30, 2019
($ in thousands)	Useful Lives	Cost		Accumulated Depreciation			Net
Computer equipment and software	3-7 years	$	6,745	$	(5,840	)	$	905
Internal-use software	3-5 years	3,126		(716		)	2,410
Property and equipment used for rental program	5 years	36,285		(30,978		)	5,307
Furniture and equipment	3-7 years	1,543		(1,116		)	427
Leasehold improvements	(1)	286		(155		)	131
		$	47,985	$	(38,805	)	$	9,180



		As of June 30, 2018
($ in thousands)	Useful Lives	Cost		Accumulated Depreciation			Net
Computer equipment and software	3-7 years	$	7,367	$	(5,353	)	$	2,014
Internal-use software	3-5 years	2,657		(492		)	2,165
Property and equipment used for rental program	5 years	33,941		(27,420		)	6,521
Furniture and equipment	3-7 years	1,327		(899		)	428
Leasehold improvements	(1)	269		(124		)	145
		$	45,561	$	(34,288	)	$	11,273

___________________________________


(1)	Lesser of lease term or estimated useful life

GOODWILL AND INTANGIBLE ASSETS (Tables)

12 Months Ended

Jun. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of intangible asset balances

Goodwill and intangible asset balances consisted of the following:



	As of June 30, 2019							Amortization Period
($ in thousands)	Gross		Accumulated Amortization			Net		Amortization Period

Intangible assets:
Non-compete agreements	$	2	$	(2	)	$	—	2 years
Brand and tradenames	1,695		(470		)	1,225		3 - 7 years
Developed technology	10,939		(3,266		)	7,673		5 - 6 years
Customer relationships	19,049		(1,776		)	17,273		10 - 18 years
Total intangible assets	$	31,685	$	(5,514	)	$	26,171

Goodwill	64,149		—			64,149		Indefinite

Total intangible assets and goodwill	$	95,834	$	(5,514	)	$	90,320



	As of June 30, 2018							Amortization Period
($ in thousands)	Gross		Accumulated Amortization			Net		Amortization Period

Intangible assets:
Non-compete agreements	$	2	$	(2	)	$	—	2 years
Brand and tradenames	1,695		(226		)	1,469		3 - 7 years
Developed technology	10,939		(1,421		)	9,518		5 - 6 years
Customer relationships	19,049		(711		)	18,338		10 - 18 years
Total intangible assets	$	31,685	$	(2,360	)	$	29,325
Goodwill	64,149		—			64,149		Indefinite
Total intangible assets and goodwill	$	95,834	$	(2,360	)	$	93,474

Schedule of estimated annual amortization expense

Estimated annual amortization expense for intangible assets is as follows (in thousands):



2020	$	3,138
2021	3,074
2022	3,010
2023	3,010
2024	1,909
Thereafter	12,030
	$	26,171

ACCRUED EXPENSES (Tables)

12 Months Ended

Jun. 30, 2019

Accrued Liabilities [Abstract]

Schedule of accrued expenses

Accrued expenses consisted of the following as of June 30, 2019 and 2018:



	As of June 30,
($ in thousands)	2019			2018

Accrued sales tax	$	16,559		$	12,686
Accrued compensation and related sales commissions	2,071			3,100
Accrued professional fees	2,847			936
Accrued taxes and filing fees	209			160
Accrued other	1,672			2,475
Total accrued expenses	23,358			19,357
Less: accrued expenses, current	(23,258		)	(19,291		)
Accrued expenses, noncurrent	$	100		$	66

DEBT AND OTHER FINANCING ARRANGEMENTS (Tables)

12 Months Ended

Jun. 30, 2019

Line of Credit Facility [Abstract]

Schedule of Debt and Other Financing Arrangements

The Company's debt and other financing arrangements as of June 30, 2019 and 2018 consisted of the following:



	As of June 30,
($ in thousands)	2019			2018

Revolving Credit Facility	$	10,000		$	10,000
Term Loan	1,458			23,333
Other, including capital lease obligations	1,323			2,689
Less: unamortized issuance costs	(8		)	(256		)
Total	12,773			35,766
Less: debt and other financing arrangements, current	(12,497		)	(34,639		)
Debt and other financing arrangements, noncurrent	$	276		$	1,127

Details of interest expense presented on the Consolidated Statements of Operations are as follows:



	Year ended June 30,
($ in thousands)	2019		2018		2017 (As Restated)
Heritage Line of Credit	$	—	$	203	$	547
Revolving Credit Facility	658		449		—
Term Loan	1,232		892		—
Other interest expense	1,102		1,561		1,681
Total interest expense	$	2,992	$	3,105	$	2,228

Schedule of Maturities of Debt and Other Financing Arrangements

The expected maturities associated with the Company’s outstanding debt and other financing arrangements (excluding interest on capital lease obligations) as of June 30, 2019, were as follows:



2020	$	12,515
2021	255
2022	22
2023	4
2024	1
Thereafter	—
	$	12,797

Schedule of benefit (provision) for income taxes

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 210
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
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Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 835
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-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
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Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
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-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

The (provision) benefit for income taxes for the years ended June 30, 2019, 2018 and 2017 is comprised of the following:



	Year ended June 30,
($ in thousands)	2019			2018			2017 (As Restated)
Current:
Federal	$	—		$	(22	)	$	(2	)
State	(269		)	(60		)	(31		)
Total current	(269		)	(82		)	(33		)
Deferred:
Federal	(11		)	183			(58		)
State	18			—			(4		)
Total deferred	7			183			(62		)
Total income tax (provision) benefit	$	(262	)	$	101		$	(95	)

Schedule of income tax benefit in the provision for income taxes



	Year ended June 30,
($ in thousands)	2019			2018			2017 (As Restated)
Indicated (provision) benefit at federal statutory rate	$	6,671		$	3,131		$	2,506
Effects of permanent differences
Stock compensation	(140		)	(46		)	—
Warrants	—			—			(507		)
Acquisition related costs	—			(759		)	—
Other permanent differences	(76		)	(157		)	(137		)
State income taxes, net of federal benefit	663			448			174
Income tax credits	—			—			60
Changes related to prior years	—			(7		)	8
Changes in valuation allowances	(7,319		)	(2,544		)	(2,199		)
Other	(61		)	35			—
	$	(262	)	$	101		$	(95	)

Schedule of deferred tax assets and liabilities



	As of June 30,
($ in thousands)	2019			2018
Deferred tax assets:
Net operating loss carryforwards	$	38,486		$	35,562
Asset reserves	7,211			4,906
Deferred research and development	1,448			1,084
Stock-based compensation	418			661
Other	983			778
	48,546			42,991
Deferred tax liabilities:
Intangibles	(6,203		)	(6,864		)
Deferred tax assets, net	42,343			36,127
Valuation allowance	(42,414		)	(36,194		)
Deferred tax liabilities, net of allowance	$	(71	)	$	(67	)

Summary of activity related to unrecognized income tax benefits

The following table summarizes the activity related to unrecognized income tax benefits:



	Year ended June 30,
($ in thousands)	2019		2018		2017
Balance at the beginning of the year	$	—	$	—	$	—
Gross increases and decreases related to current period tax positions	180		—		—
Accrued interest and penalties	30		—		—
Balance at the end of the year	$	210	$	—	$	—

STOCK BASED COMPENSATION PLANS (Tables)

12 Months Ended

Jun. 30, 2019

Share-based Payment Arrangement [Abstract]

Schedule of stock based compensation plans

The Company has four active stock based compensation plans at June 30, 2019 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
April 2018	2018 Equity Incentive Plan	Stock & stock options	1,500,000
			4,000,000

Schedule of common stock for future issuance

As of June 30, 2019, the Company had reserved shares of Common Stock for future issuance for the following:



Common Stock		Reserved Shares
Exercise of Common Stock Warrants		23,978
Conversions of Preferred Stock and cumulative Preferred Stock dividends		104,139
Issuance under 2013 Stock Incentive Plan		—
Issuance under 2014 Stock Option Incentive Plan		101,447
Issuance under 2015 Equity Incentive Plan		342,806
Issuance under 2018 Equity Incentive Plan		1,500,000
Total shares reserved for future issuance		2,072,370

Schedule of stock option granted weighted average assumptions

The fair value of options granted during the years ended June 30, 2019, 2018, and 2017 was determined using the following assumptions:



	For the year ended June 30,
	2019	2018	2017

Expected volatility	58.4 - 70.9%	50.2 - 50.9%	49.0 - 50.2%
Expected life (years)	4.2 - 4.5	4.0 - 4.5	3.6 - 4.5
Expected dividends	0.0%	0.0%	0.0%
Risk-free interest rate	2.23-2.91%	1.64 - 1.75%	1.06 - 1.72%

Schedule of information related to outstanding options

The following tables provide information about outstanding options for the years ended June 30, 2019, 2018, and 2017:



	For the year ended June 30, 2019
	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding options, beginning of period	904,766		$	3.31	4.3	$	9,664
Granted	470,000		$	8.22
Exercised	(11,669	)	$	5.40		$	—
Forfeited	(235,999	)	$	5.70
Expired	—		$	—
Outstanding options, end of period	1,127,098		$	4.84	4.3	$	2,917
Exercisable options, end of period	638,988		$	2.86	3.4	$	2,923



	For the year ended June 30, 2018
	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding options, beginning of period	895,221		$	2.79	5.2	$	2,160
Granted	179,047		$	5.66
Exercised	(93,169	)	$	1.92		$	—
Forfeited	(76,333	)	$	4.30
Expired	—		$	—
Outstanding options, end of period	904,766		$	3.31	4.3	$	9,664
Exercisable options, end of period	632,737		$	2.55	3.9	$	7,242



	For the year ended June 30, 2017
	Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding options, beginning of period	610,141	$	2.07	5.4	$	1,342
Granted	285,080	$	4.30
Exercised	—	$	—		$	—
Forfeited	—	$	—
Expired	—	$	—
Outstanding options, end of period	895,221	$	2.79	5.2	$	2,160
Exercisable options, end of period	483,474	$	2.08	4.5	$	1,511

Schedule of nonvested share activity

A summary of the status of the Company’s nonvested common shares as of June 30, 2019, 2018, and 2017, and changes during the years then ended is presented below:



	Shares		Weighted-Average Grant-Date Fair Value
Nonvested at June 30, 2016	128,498		$	2.97
Granted	135,585		4.25
Vested	(141,527	)	3.33
Nonvested at June 30, 2017	122,556		$	3.96
Granted	275,547		5.31
Vested	(232,267	)	4.92
Nonvested at June 30, 2018	165,836		$	4.85
Granted	40,062		13.90
Vested	(166,927	)	6.01
Nonvested at June 30, 2019	38,971		$	9.19

Schedule of stock-based compensation expense

A summary of the Company's stock-based compensation expense recognized during the years ended June 30, 2019, 2018, and 2017 is as follows (in thousands):



	For the year ended June 30,
Award type	2019		2018		2017
Stock options	$	822	$	485	$	264
Stock grants	928		1,309		950
Total stock-based compensation expense	$	1,750	$	1,794	$	1,214

A summary of the Company's unrecognized stock-based compensation expense as of June 30, 2019 is as follows:

PREFERRED STOCK (Tables)

12 Months Ended

Jun. 30, 2019

Preferred Stock [Abstract]

Schedule of preferred stock

The Series A Preferred Stock liquidation preference as of June 30, 2019 and 2018 is as follows:



($ in thousands)	June 30, 2019		June 30, 2018
For shares outstanding at $10.00 per share	$	4,451	$	4,451
Cumulative unpaid dividends	15,660		14,992
	$	20,111	$	19,443

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Schedule of capital leases and non-cancellable operating leases

Future minimum lease payments for fiscal years subsequent to June 30, 2019 under non-cancellable operating leases and capital leases are as follows:



($ in thousands)	Operating Leases		Capital Leases
2020	$	1,326	$	106
2021	1,151		34
2022	1,180		12
2023	1,208		1
2024	859		1
Thereafter	1,550		—
Total minimum lease payments	$	7,274	$	154
Less: interest			(14		)
Present value of minimum lease payments, net			140
Less: current obligations under capital leases			(106		)
Obligations under capital leases, noncurrent			$	34

UNAUDITED QUARTERLY DATA (Tables)

12 Months Ended

Jun. 30, 2019

Quarterly Financial Information Disclosure [Abstract]

Schedule of unaudited quarterly data



	Three months ended
($ in thousands, except per share data)	September 30, 2018			December 31, 2018			March 31, 2019			June 30, 2019
	(unaudited)			(unaudited)			(unaudited)			(unaudited)

Revenue	$	33,522		$	34,406		$	37,646		$	38,225
Gross profit	$	10,110		$	9,243		$	9,779		$	8,987
Operating loss	$	(5,921	)	$	(10,200	)	$	(3,892	)	$	(10,143	)
Net loss	$	(6,320	)	$	(10,657	)	$	(4,510	)	$	(10,541	)
Cumulative preferred dividends	$	(334	)	$	—		$	(334	)	$	—
Net loss applicable to common shares	$	(6,654	)	$	(10,657	)	$	(4,844	)	$	(10,541	)
Net loss per common share - basic	$	(0.11	)	$	(0.18	)	$	(0.08	)	$	(0.18	)
Net loss per common share - diluted	$	(0.11	)	$	(0.18	)	$	(0.08	)	$	(0.18	)
Weighted average number of common shares outstanding - basic	60,053,912			60,059,936			60,065,053			60,065,978
Weighted average number of common shares outstanding - diluted	60,053,912			60,059,936			60,065,053			60,065,978



	Three months ended
($ in thousands, except per share data)	September 30, 2017 (As Restated)			December 31, 2017 (As Restated)			March 31, 2018 (As Restated)			June 30, 2018
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Revenue	$	25,259		$	31,532		$	33,592		$	42,125
Gross profit	$	6,181		$	9,172		$	9,845		$	10,478
Operating loss	$	(1,750	)	$	(3,905	)	$	(2,566	)	$	(1,002	)
Net loss	$	(2,171	)	$	(4,194	)	$	(3,223	)	$	(1,696	)
Cumulative preferred dividends	$	(334	)	$	—		$	(334	)	$	—
Net loss applicable to common shares	$	(2,505	)	$	(4,194	)	$	(3,557	)	$	(1,696	)
Net loss per common share - basic	$	(0.05	)	$	(0.08	)	$	(0.07	)	$	(0.03	)
Net loss per common share - diluted	$	(0.05	)	$	(0.08	)	$	(0.07	)	$	(0.03	)
Weighted average number of common shares outstanding - basic	47,573,364			52,150,106			53,637,085			54,064,750
Weighted average number of common shares outstanding - diluted	47,573,364			52,150,106			53,637,085			54,064,750



	Three months ended
($ in thousands, except per share data)	September 30, 2016 (As Restated)			December 31, 2016 (As Restated)			March 31, 2017 (As Restated)			June 30, 2017 (As Restated)
	(unaudited)			(unaudited)			(unaudited)			(unaudited)

Revenue	$	21,569		$	21,787		$	26,301		$	31,779
Gross profit	$	6,297		$	6,445		$	6,342		$	5,977
Operating loss	$	(1,383	)	$	109		$	(459	)	$	(2,401	)
Net loss	$	(3,370	)	$	(232	)	$	(925	)	$	(2,938	)
Cumulative preferred dividends	$	(334	)	$	—		$	(334	)	$	—
Net loss applicable to common shares	$	(3,704	)	$	(232	)	$	(1,259	)	$	(2,938	)
Net loss per common share - basic	$	(0.10	)	$	(0.01	)	$	(0.03	)	$	(0.07	)
Net loss per common share - diluted	$	(0.10	)	$	(0.01	)	$	(0.03	)	$	(0.07	)
Weighted average number of common shares outstanding - basic	38,488,005			40,308,934			40,327,697			40,331,993
Weighted average number of common shares outstanding - diluted	38,488,005			40,308,934			40,327,697			40,331,993

Summary of impact of correction of errors

RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS

Overview

Background

Effect of Restatement on Previously Filed June 30, 2017 Form 10-K

A summary of the impact of these matters on income (loss) before taxes is presented below:



($ in thousands)	Increase / (Decrease) Restatement Impact
	Year ended June 30, 2017
Audit Committee Investigation-related Adjustments:
Revenue	$	(2,568	)
Costs of sales	$	(1,163	)
Gross profit	$	(1,405	)
Operating income (loss)	$	(1,405	)
Loss before income taxes	$	(1,405	)

Significant Account and Transaction Review and Other:
Revenue	$	(89	)
Costs of sales	$	91
Gross profit	$	(180	)
Operating income (loss)	$	(2,864	)
Loss before income taxes	$	(4,200	)

A summary of the impact of these matters on the consolidated balance sheet is presented below, excluding any tax effect from the restatement adjustments in the aggregate:



($ in thousands)	Increase / (Decrease) Restatement Impact
	As of June 30, 2017
Audit Committee Investigation-related Adjustments:
Accounts receivable	$	(284	)
Finance receivables, net	$	(1,267	)
Inventory, net	$	1,106
Prepaid expenses and other current assets	$	25
Other assets	$	88
Accounts payable	$	270
Accrued expenses	$	803

Significant Account and Transaction Review and Other:
Accounts receivable	$	(75	)
Inventory, net	$	(500	)
Prepaid expenses and other current assets	$	(114	)
Other assets	$	(456	)
Property and equipment, net	$	(1,000	)
Accounts payable	$	21
Accrued expenses	$	7,235
Capital lease obligation and current obligations under long-term debt	$	(32	)
Deferred revenue	$	(27	)
Deferred gain from sale-leaseback transactions	$	(239	)
Deferred gain from sale-leaseback transactions, less current portion	$	(100	)

The effect of the restatement on the previously filed consolidated balance sheet as of June 30, 2017 is as follows:



	As of June 30, 2017
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Assets
Current assets:
Cash and cash equivalents	$	12,745		$	—		$	12,745
Accounts receivable	7,193			(359		)	6,834
Finance receivables, net	11,010			(1,267		)	9,743
Inventory, net	4,586			606			5,192
Prepaid expenses and other current assets	968			(89		)	879
Total current assets	36,502			(1,109		)	35,393

Non-current assets:
Finance receivables due after one year	8,607			—			8,607
Other assets	687			(368		)	319
Property and equipment, net	12,111			(1,000		)	11,111
Deferred income taxes	27,670			(27,670		)	—
Intangibles, net	622			—			622
Goodwill	11,492			—			11,492
Total non-current assets	61,189			(29,038		)	32,151

Total assets	$	97,691		$	(30,147	)	$	67,544

Liabilities, convertible preferred stock and shareholders’ equity
Current liabilities:
Accounts payable	$	16,054		$	291		$	16,345
Accrued expenses	4,130			7,743			11,873
Line of credit, net	7,036			—			7,036
Capital lease obligations and current obligations under long-term debt	3,230			(32		)	3,198
Income taxes payable	10			—			10
Deferred revenue	—			268			268
Deferred gain from sale-leaseback transactions	239			(239		)	—
Total current liabilities	30,699			8,031			38,730

Long-term liabilities:
Deferred income taxes	—			94			94
Capital lease obligations and long-term debt, less current portion	1,061			—			1,061
Accrued expenses, less current portion	53			—			53
Deferred gain from sale-leaseback transactions, less current portion	100			(100		)	—
Total long-term liabilities	1,214			(6		)	1,208

Total liabilities	$	31,913		$	8,025		$	39,938
Commitments and contingencies
Convertible preferred stock:
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $18,775 at June 30, 2017	—			3,138			3,138
Shareholders’ equity:
Preferred stock, no par value, 1,800,000 shares authorized, no shares issued	—			—			—
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $18,775 at June 30, 2017	3,138			(3,138		)	—
Common stock, no par value, 640,000,000 shares authorized, 40,331,645 shares issued and outstanding at June 30, 2017	245,999			—			245,999
Accumulated deficit	(183,359		)	(38,172		)	(221,531		)
Total shareholders’ equity	65,778			(41,310		)	24,468
Total liabilities, convertible preferred stock and shareholders’ equity	$	97,691		$	(30,147	)	$	67,544

The effect of the restatement on the previously filed consolidated statement of operations for the year ended June 30, 2017 is as follows:



	Year ended June 30, 2017
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Revenue:
License and transaction fees	$	69,142		$	(8	)	$	69,134
Equipment sales	34,951			(2,649		)	32,302
Total revenue	104,093			(2,657		)	101,436

Costs of sales:
Cost of services	47,053			(533		)	46,520
Cost of equipment	30,394			(539		)	29,855
Total costs of sales	77,447			(1,072		)	76,375
Gross profit	26,646			(1,585		)	25,061

Operating expenses:
Selling, general and administrative	25,493			2,684			28,177
Depreciation and amortization	1,018			—			1,018
Total operating expenses	26,511			2,684			29,195
Operating income (loss)	135			(4,269		)	(4,134		)

Other income (expense):
Interest income	482			—			482
Interest expense	(892		)	(1,336		)	(2,228		)
Change in fair value of warrant liabilities	(1,490		)	—			(1,490		)
Total other expense, net	(1,900		)	(1,336		)	(3,236		)

Loss before income taxes	(1,765		)	(5,605		)	(7,370		)
Provision for income taxes	(87		)	(8		)	(95		)

Net loss	(1,852		)	(5,613		)	(7,465		)
Preferred dividends	(668		)	—			(668		)
Net loss applicable to common shares	$	(2,520	)	$	(5,613	)	$	(8,133	)
Net loss per common share
Basic	$	(0.06	)	$	(0.14	)	$	(0.20	)
Diluted	$	(0.06	)	$	(0.14	)	$	(0.20	)
Weighted average number of common shares outstanding
Basic	39,860,335			—			39,860,335
Diluted	39,860,335			—			39,860,335

The effect of the restatement on the previously filed consolidated statement of cash flows for the year ended June 30, 2017 is as follows:



	Year ended June 30, 2017
($ in thousands)	As Previously Reported			Adjustments			As Restated

OPERATING ACTIVITIES:
Net loss	$	(1,852	)	$	(5,613	)	$	(7,465	)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash stock-based compensation	1,214			—			1,214
(Gain) loss on disposal of property and equipment	(177		)	—			(177		)
Non-cash interest and amortization of debt discount	113			—			113
Bad debt expense	764			(207		)	557
Provision for inventory reserve	—			877			877
Depreciation and amortization	5,591			365			5,956
Change in fair value of warrant liabilities	1,490			—			1,490
Deferred income taxes, net	54			8			62
Recognition of deferred gain from sale-leaseback transactions	(560		)	560			—
Changes in operating assets and liabilities:
Accounts receivable	(2,988		)	450			(2,538		)
Finance receivables, net	(12,119		)	1,287			(10,832		)
Inventory, net	(2,399		)	(2,064		)	(4,463		)
Prepaid expenses and other current assets	(304		)	457			153
Accounts payable and accrued expenses	4,410			4,464			8,874
Deferred revenue	—			115			115
Income taxes payable	(8		)	—			(8		)
Net cash used in operating activities	(6,771		)	699			(6,072		)

INVESTING ACTIVITIES:
Purchase of property and equipment, including rentals	(4,041		)	254			(3,787		)
Proceeds from sale of property and equipment	348			—			348
Net cash used in investing activities	(3,693		)	254			(3,439		)

FINANCING ACTIVITIES:
Cash used in retirement of common stock	(31		)	—			(31		)
Proceeds from exercise of common stock warrants	6,193			—			6,193
Payment of debt issuance costs	(90		)	—			(90		)
Repayment of line of credit	(106		)	—			(106		)
Repayment of capital lease obligations and long-term debt	(2,029		)	(953		)	(2,982		)
Net cash provided by financing activities	3,937			(953		)	2,984

Net decrease in cash and cash equivalents	(6,527		)	—			(6,527		)
Cash and cash equivalents at beginning of year	19,272			—			19,272
Cash and cash equivalents at end of year	$	12,745		$	—		$	12,745

A summary of the impact of these matters on income (loss) before taxes is presented below:



($ in thousands)	Increase / (Decrease) Restatement Impact
	Three months ended September 30, 2017			Three months ended December 31, 2017			Six months ended December 31, 2017			Three months ended March 31, 2018			Nine months ended March 31, 2018
Audit Committee Investigation-related Adjustments:
Revenue	$	(411	)	$	(866	)	$	(1,277	)	$	(768	)	$	(2,045	)
Costs of sales	$	165		$	(1,225	)	$	(1,060	)	$	(293	)	$	(1,353	)
Gross profit	$	(576	)	$	359		$	(217	)	$	(475	)	$	(692	)
Operating income (loss)	$	(576	)	$	359		$	(217	)	$	(9	)	$	(226	)
Income (loss) before income taxes	$	(576	)	$	357		$	(219	)	$	(29	)	$	(248	)

Acquisition and Financial Integration-related Adjustments:
Revenue	$	—		$	(60	)	$	(60	)	$	(1,546	)	$	(1,606	)
Costs of sales	$	—		$	(33	)	$	(33	)	$	(79	)	$	(112	)
Gross profit	$	—		$	(27	)	$	(27	)	$	(1,467	)	$	(1,494	)
Operating income (loss)	$	—		$	(288	)	$	(288	)	$	(1,594	)	$	(1,882	)
Income (loss) before income taxes	$	—		$	(223	)	$	(223	)	$	(1,499	)	$	(1,722	)

Significant Account and Transaction Review and Other:
Revenue	$	53		$	(47	)	$	6		$	75		$	81
Costs of sales	$	497		$	313		$	810		$	231		$	1,041
Gross profit	$	(444	)	$	(360	)	$	(804	)	$	(156	)	$	(960	)
Operating income (loss)	$	(622	)	$	(775	)	$	(1,397	)	$	(461	)	$	(1,858	)
Income (loss) before income taxes	$	(886	)	$	(1,041	)	$	(1,927	)	$	(696	)	$	(2,623	)



($ in thousands)	Increase / (Decrease) Restatement Impact
	Three months ended September 30, 2016			Three months ended December 31, 2016			Six months ended December 31, 2016			Three months ended March 31, 2017			Nine months ended March 31, 2017			Three months ended June 30, 2017
Audit Committee Investigation-related Adjustments:
Revenue	$	—		$	—		$	—		$	(111	)	$	(111	)	$	(2,457	)
Costs of sales	$	—		$	—		$	—		$	(24	)	$	(24	)	$	(1,139	)
Gross profit	$	—		$	—		$	—		$	(87	)	$	(87	)	$	(1,318	)
Operating income (loss)	$	—		$	—		$	—		$	(87	)	$	(87	)	$	(1,318	)
Income (loss) before income taxes	$	—		$	—		$	—		$	(87	)	$	(87	)	$	(1,318	)

Significant Account and Transaction Review and Other:
Revenue	$	(18	)	$	31		$	13		$	(49	)	$	(36	)	$	(53	)
Costs of sales	$	(148	)	$	(81	)	$	(229	)	$	147		$	(82	)	$	173
Gross profit	$	130		$	112		$	242		$	(196	)	$	46		$	(226	)
Operating income (loss)	$	(434	)	$	(124	)	$	(558	)	$	(790	)	$	(1,348	)	$	(1,516	)
Income (loss) before income taxes	$	(769	)	$	(441	)	$	(1,210	)	$	(1,159	)	$	(2,369	)	$	(1,831	)

A summary of the impact of these matters on the consolidated balance sheet is presented below, excluding any tax effect from the restatement adjustments in the aggregate:



($ in thousands)	Increase / (Decrease) Restatement Impact
	As of September 30, 2016			As of December 31, 2016			As of March 31, 2017			As of September 30, 2017			As of December 31, 2017			As of March 31, 2018
Audit Committee Investigation-related Adjustments:
Accounts receivables	$	—		$	—		$	—		$	(315	)	$	(1,774	)	$	(1,954	)
Finance receivables, net	$	—		$	—		$	92		$	(1,640	)	$	(1,269	)	$	(1,666	)
Inventory, net	$	—		$	—		$	—		$	941		$	2,166		$	2,459
Prepaid expenses and other current assets	$	—		$	—		$	30		$	25		$	25		$	25
Other assets	$	—		$	—		$	95		$	82		$	76		$	69
Property and equipment, net	$	—		$	—		$	—		$	—		$	(162	)	$	(146	)
Accounts payable	$	—		$	—		$	270		$	270		$	106		$	99
Accrued expenses	$	—		$	—		$	34		$	803		$	580		$	341

Acquisition and Financial Integration-related Adjustments:
Cash and cash equivalents	$	—		$	—		$	—		$	—		$	(26	)	$	(52	)
Accounts receivables	$	—		$	—		$	—		$	—		$	1,133		$	(1,974	)
Finance receivables, net	$	—		$	—		$	—		$	—		$	(1,515	)	$	158
Inventory, net	$	—		$	—		$	—		$	—		$	(500	)	$	(500	)
Prepaid expenses and other current assets	$	—		$	—		$	—		$	—		$	(35	)	$	(44	)
Property and equipment, net	$	—		$	—		$	—		$	—		$	721		$	826
Other assets	$	—		$	—		$	—		$	—		$	(139	)	$	(175	)
Goodwill	$	—		$	—		$	—		$	—		$	4,121		$	4,121
Accrued expenses	$	—		$	—		$	—		$	—		$	785		$	883
Deferred revenue	$	—		$	—		$	—		$	—		$	(153	)	$	(153	)
Common stock	$	—		$	—		$	—		$	—		$	3,469		$	3,469

Significant Account and Transaction Review and Other:
Accounts receivables	$	(143	)	$	110		$	61		$	77		$	(8	)	$	127
Finance receivables, net	$	—		$	—		$	—		$	—		$	1,074		$	28
Inventory, net	$	(338	)	$	(348	)	$	(470	)	$	(305	)	$	(861	)	$	(1,067	)
Prepaid expenses and other current assets	$	13		$	13		$	13		$	(136	)	$	(150	)	$	(173	)
Other assets	$	—		$	—		$	—		$	(543	)	$	(600	)	$	(693	)
Property and equipment, net	$	2,865		$	2,561		$	2,168		$	(1,149	)	$	(737	)	$	(635	)
Accounts payable	$	17		$	19		$	21		$	25		$	27		$	29
Accrued expenses	$	4,506		$	5,222		$	6,166		$	8,319		$	9,087		$	9,877
Line of credit, net	$	13		$	13		$	13		$	—		$	—		$	—
Capital lease obligation and current obligations under long-term debt	$	4,117		$	3,566		$	2,998		$	(21	)	$	367		$	(5	)
Deferred revenue	$	—		$	—		$	—		$	(27	)	$	(27	)	$	(27	)
Deferred gain from sale-leaseback transactions	$	(685	)	$	(470	)	$	(255	)	$	(198	)	$	(198	)	$	(198	)
Deferred gain from sale-leaseback transactions, less current portion	$	—		$	—		$	—		$	(99	)	$	(49	)	$	—
Capital lease obligation and long-term debt, less current portion	$	—		$	—		$	—		$	—		$	697		$	—
Common stock	$	—		$	—		$	—		$	(166	)	$	(372	)	$	(867	)

The effect of the restatement on the previously filed consolidated balance sheet as of September 30, 2017 is as follows:



	As of September 30, 2017
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Assets
Current assets:
Cash and cash equivalents	$	51,870		$	—		$	51,870
Accounts receivable	10,288			(473		)	9,815
Finance receivables, net	3,082			(1,641		)	1,441
Inventory, net	8,240			636			8,876
Prepaid expenses and other current assets	1,122			(66		)	1,056
Total current assets	74,602			(1,544		)	73,058

Non-current assets:
Finance receivables due after one year	7,742			—			7,742
Other assets	750			(461		)	289
Property and equipment, net	11,850			(1,149		)	10,701
Deferred income taxes	28,205			(28,205		)	—
Intangibles, net	578			—			578
Goodwill	11,492			—			11,492
Total non-current assets	60,617			(29,815		)	30,802

Total assets	$	135,219		$	(31,359	)	$	103,860

Liabilities, convertible preferred stock and shareholders’ equity
Current liabilities:
Accounts payable	$	14,211		$	295		$	14,506
Accrued expenses	3,795			8,422			12,217
Line of credit, net	7,051			—			7,051
Capital lease obligations and current obligations under long-term debt	2,649			(21		)	2,628
Income taxes payable	10			(10		)	—
Deferred revenue	—			439			439
Deferred gain from sale-leaseback transactions	197			(197		)	—
Total current liabilities	27,913			8,928			36,841

Long-term liabilities:
Deferred income taxes	—			109			109
Capital lease obligations and long-term debt, less current portion	1,049			—			1,049
Accrued expenses, less current portion	62			—			62
Deferred gain from sale-leaseback transactions, less current portion	99			(99		)	—
Total long-term liabilities	1,210			10			1,220

Total liabilities	$	29,123		$	8,938		$	38,061
Commitments and contingencies
Convertible preferred stock:
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $19,109 at September 30, 2017	—			3,138			3,138
Shareholders’ equity:
Preferred stock, no par value, 1,800,000 shares authorized, no shares issued	—			—			—
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $19,109 at September 30, 2017	3,138			(3,138		)	—
Common stock, no par value, 640,000,000 shares authorized, 50,194,731 shares issued and outstanding at September 30, 2017	286,463			(167		)	286,296
Accumulated deficit	(183,505		)	(40,130		)	(223,635		)
Total shareholders’ equity	106,096			(43,435		)	62,661
Total liabilities, convertible preferred stock and shareholders’ equity	$	135,219		$	(31,359	)	$	103,860

The effect of the restatement on the previously filed consolidated statement of operations for the three months ended September 30, 2017 is as follows:



	Three months ended September 30, 2017
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Revenue:
License and transaction fees	$	19,944		$	(547	)	$	19,397
Equipment sales	5,673			189			5,862
Total revenue	25,617			(358		)	25,259

Costs of sales:
Cost of services	13,326			(79		)	13,247
Cost of equipment	5,090			741			5,831
Total costs of sales	18,416			662			19,078
Gross profit	7,201			(1,020		)	6,181

Operating expenses:
Selling, general and administrative	6,746			178			6,924
Integration and acquisition costs	762			—			762
Depreciation and amortization	245			—			245
Total operating expenses	7,753			178			7,931
Operating loss	(552		)	(1,198		)	(1,750		)

Other income (expense):
Interest income	80			—			80
Interest expense	(209		)	(264		)	(473		)
Total other expense, net	(129		)	(264		)	(393		)

Loss before income taxes	(681		)	(1,462		)	(2,143		)
Benefit (provision) for income taxes	468			(496		)	(28		)

Net loss	(213		)	(1,958		)	(2,171		)
Preferred dividends	(334		)	—			(334		)
Net loss applicable to common shares	$	(547	)	$	(1,958	)	$	(2,505	)
Net loss per common share
Basic	$	(0.01	)	$	(0.04	)	$	(0.05	)
Diluted	$	(0.01	)	$	(0.04	)	$	(0.05	)
Weighted average number of common shares outstanding
Basic	47,573,364			—			47,573,364
Diluted	47,573,364			—			47,573,364

The effect of the restatement on the previously filed consolidated statement of cash flows for the three months ended September 30, 2017 is as follows:



	Three months ended September 30, 2017
($ in thousands)	As Previously Reported			Adjustments			As Restated

OPERATING ACTIVITIES:
Net loss	$	(213	)	$	(1,958	)	$	(2,171	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Non-cash stock-based compensation	576			(167		)	409
(Gain) loss on disposal of property and equipment	(18		)	—			(18		)
Non-cash interest and amortization of debt discount	15			2			17
Bad debt expense	118			50			168
Provision for inventory reserve	—			221			221
Depreciation and amortization	1,492			(122		)	1,370
Excess tax benefits	67			—			67
Deferred income taxes, net	(535		)	551			16
Recognition of deferred gain from sale-leaseback transactions	(43		)	43			—
Changes in operating assets and liabilities:
Accounts receivable	(3,192		)	43			(3,149		)
Finance receivables, net	8,771			397			9,168
Inventory, net	(3,648		)	(252		)	(3,900		)
Prepaid expenses and other current assets	(217		)	114			(103		)
Accounts payable and accrued expenses	(2,168		)	678			(1,490		)
Deferred revenue	—			171			171
Income taxes payable	—			(55		)	(55		)
Net cash provided by operating activities	1,005			(284		)	721

INVESTING ACTIVITIES:
Purchase of property and equipment, including rentals	(992		)	272			(720		)
Proceeds from sale of property and equipment	45			—			45
Net cash used in investing activities	(947		)	272			(675		)

FINANCING ACTIVITIES:
Issuance of common stock in public offering, net	39,888			—			39,888
Repayment of capital lease obligations and long-term debt	(821		)	12			(809		)
Net cash provided by financing activities	39,067			12			39,079

Net increase in cash and cash equivalents	39,125			—			39,125
Cash and cash equivalents at beginning of year	12,745			—			12,745
Cash and cash equivalents at end of period	$	51,870		$	—		$	51,870

The effect of the restatement on the previously filed consolidated balance sheet as of December 31, 2017 is as follows:



	As of December 31, 2017
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Assets
Current assets:
Cash and cash equivalents	$	15,386		$	(26	)	$	15,360
Accounts receivable	15,472			(765		)	14,707
Finance receivables, net	5,517			(2,221		)	3,296
Inventory, net	11,215			804			12,019
Prepaid expenses and other current assets	1,971			(361		)	1,610
Total current assets	49,561			(2,569		)	46,992

Non-current assets:
Finance receivables due after one year	11,215			513			11,728
Other assets	1,120			(662		)	458
Property and equipment, net	12,622			(179		)	12,443
Deferred income taxes	14,774			(14,774		)	—
Intangibles, net	30,910			—			30,910
Goodwill	64,449			(46		)	64,403
Total non-current assets	135,090			(15,148		)	119,942

Total assets	$	184,651		$	(17,717	)	$	166,934

Liabilities, convertible preferred stock and shareholders’ equity
Current liabilities:
Accounts payable	$	23,775		$	133		$	23,908
Accrued expenses	6,798			9,825			16,623
Capital lease obligations, current obligations under long-term debt, and collateralized borrowings	5,121			367			5,488
Income taxes payable	6			(6		)	—
Deferred revenue	595			135			730
Deferred gain from sale-leaseback transactions	198			(198		)	—
Total current liabilities	36,493			10,256			46,749

Long-term liabilities:
Revolving credit facility	10,000			—			10,000
Deferred income taxes	—			91			91
Capital lease obligations, long-term debt, and collateralized borrowings, less current portion	23,874			696			24,570
Accrued expenses, less current portion	65			—			65
Deferred gain from sale-leaseback transactions, less current portion	49			(49		)	—
Total long-term liabilities	33,988			738			34,726

Total liabilities	$	70,481		$	10,994		$	81,475
Commitments and contingencies
Convertible preferred stock:
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $19,109 at December 31, 2017	—			3,138			3,138
Shareholders’ equity:
Preferred stock, no par value, 1,800,000 shares authorized, no shares issued	—			—			—
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $19,109 at December 31, 2017	3,138			(3,138		)	—
Common stock, no par value, 640,000,000 shares authorized, 53,619,898 shares issued and outstanding at December 31, 2017	307,053			3,097			310,150
Accumulated deficit	(196,021		)	(31,808		)	(227,829		)
Total shareholders’ equity	114,170			(31,849		)	82,321
Total liabilities, convertible preferred stock and shareholders’ equity	$	184,651		$	(17,717	)	$	166,934

The effect of the restatement on the previously filed consolidated statement of operations for the three and six months ended December 31, 2017 is as follows:



	Three months ended December 31, 2017									Six months ended December 31, 2017
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated			As Previously Reported			Adjustments			As Restated

Revenue:
License and transaction fees	$	22,853		$	661		$	23,514		$	42,797		$	114		$	42,911
Equipment sales	9,653			(1,635		)	8,018			15,326			(1,446		)	13,880
Total revenue	32,506			(974		)	31,532			58,123			(1,332		)	56,791

Costs of sales:
Cost of services	14,362			(6		)	14,356			27,688			(85		)	27,603
Cost of equipment	8,943			(939		)	8,004			14,033			(198		)	13,835
Total costs of sales	23,305			(945		)	22,360			41,721			(283		)	41,438
Gross profit	9,201			(29		)	9,172			16,402			(1,049		)	15,353

Operating expenses:
Selling, general and administrative	8,329			676			9,005			15,075			854			15,929
Integration and acquisition costs	3,335			—			3,335			4,097			—			4,097
Depreciation and amortization	737			—			737			982			—			982
Total operating expenses	12,401			676			13,077			20,154			854			21,008
Operating loss	(3,200		)	(705		)	(3,905		)	(3,752		)	(1,903		)	(5,655		)

Other income (expense):
Interest income	251			73			324			331			73			404
Interest expense	(494		)	(276		)	(770		)	(703		)	(540		)	(1,243		)
Total other expense, net	(243		)	(203		)	(446		)	(372		)	(467		)	(839		)

Loss before income taxes	(3,443		)	(908		)	(4,351		)	(4,124		)	(2,370		)	(6,494		)
(Provision) benefit for income taxes	(9,073		)	9,230			157			(8,605		)	8,734			129

Net loss	(12,516		)	8,322			(4,194		)	(12,729		)	6,364			(6,365		)
Preferred dividends	—			—			—			(334		)	—			(334		)
Net loss applicable to common shares	$	(12,516	)	$	8,322		$	(4,194	)	$	(13,063	)	$	6,364		$	(6,699	)
Net loss per common share
Basic	$	(0.24	)	$	0.16		$	(0.08	)	$	(0.26	)	$	0.13		$	(0.13	)
Diluted	$	(0.24	)	$	0.16		$	(0.08	)	$	(0.26	)	$	0.13		$	(0.13	)
Weighted average number of common shares outstanding
Basic	52,150,106			—			52,150,106			49,861,735			—			49,861,735
Diluted	52,150,106			—			52,150,106			49,861,735			—			49,861,735

The effect of the restatement on the previously filed consolidated statement of cash flows for the six months ended December 31, 2017 is as follows:



	Six months ended December 31, 2017
($ in thousands)	As Previously Reported			Adjustments			As Restated

OPERATING ACTIVITIES:
Net loss	$	(12,729	)	$	6,364		$	(6,365	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Non-cash stock-based compensation	1,356			(372		)	984
(Gain) loss on disposal of property and equipment	(83		)	3			(80		)
Non-cash interest and amortization of debt discount	86			8			94
Bad debt expense	291			91			382
Provision for inventory reserve	—			1,091			1,091
Depreciation and amortization	3,476			(198		)	3,278
Excess tax benefits	67			—			67
Deferred income taxes, net	8,537			(8,696		)	(159		)
Recognition of deferred gain from sale-leaseback transactions	(93		)	93			—
Changes in operating assets and liabilities:
Accounts receivable	(5,290		)	(42		)	(5,332		)
Finance receivables, net	7,958			(626		)	7,332
Inventory, net	(5,822		)	(1,793		)	(7,615		)
Prepaid expenses and other current assets	(606		)	604			(2		)
Accounts payable and accrued expenses	6,950			754			7,704
Deferred revenue	—			570			570
Income taxes payable	40			(80		)	(40		)
Net cash provided by operating activities	4,138			(2,229		)	1,909

INVESTING ACTIVITIES:
Purchase of property and equipment, including rentals	(1,767		)	33			(1,734		)
Proceeds from sale of property and equipment	157			—			157
Cash paid for acquisitions, net of cash acquired	(65,181		)	—			(65,181		)
Net cash used in investing activities	(66,791		)	33			(66,758		)

FINANCING ACTIVITIES:
Proceeds from collateralized borrowing from the transfer of finance receivables	—			1,075			1,075
Payment of debt issuance costs	(445		)	—			(445		)
Proceeds from issuance of long-term debt	25,100			—			25,100
Proceeds from revolving credit facility	10,000			—			10,000
Issuance of common stock in public offering, net	39,888			—			39,888
Repayment of line of credit	(7,111		)	—			(7,111		)
Repayment of capital lease obligations and long-term debt	(2,138		)	1,095			(1,043		)
Net cash provided by financing activities	65,294			2,170			67,464

Net increase in cash and cash equivalents	2,641			(26		)	2,615
Cash and cash equivalents at beginning of year	12,745			—			12,745
Cash and cash equivalents at end of period	$	15,386		$	(26	)	$	15,360

The effect of the restatement on the previously filed consolidated balance sheet as of March 31, 2018 is as follows:



	As of March 31, 2018
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Assets
Current assets:
Cash and cash equivalents	$	17,107		$	(52	)	$	17,055
Accounts receivable	23,166			(3,723		)	19,443
Finance receivables, net	3,904			(1,670		)	2,234
Inventory, net	11,030			893			11,923
Prepaid expenses and other current assets	1,869			(591		)	1,278
Total current assets	57,076			(5,143		)	51,933

Non-current assets:
Finance receivables due after one year	9,679			191			9,870
Other assets	1,214			(800		)	414
Property and equipment, net	12,198			45			12,243
Deferred income taxes	16,911			(16,911		)	—
Intangibles, net	30,119			—			30,119
Goodwill	64,196			(47		)	64,149
Total non-current assets	134,317			(17,522		)	116,795

Total assets	$	191,393		$	(22,665	)	$	168,728

Liabilities, convertible preferred stock and shareholders’ equity
Current liabilities:
Accounts payable	$	29,446		$	128		$	29,574
Accrued expenses	7,961			10,547			18,508
Capital lease obligations and current obligations under long-term debt	4,475			(5		)	4,470
Deferred revenue	441			70			511
Deferred gain from sale-leaseback transactions	198			(198		)	—
Total current liabilities	42,521			10,542			53,063

Long-term liabilities:
Revolving credit facility	10,000			—			10,000
Deferred income taxes	—			96			96
Capital lease obligations and long-term debt, less current portion	22,895			—			22,895
Accrued expenses, less current portion	66			—			66
Total long-term liabilities	32,961			96			33,057

Total liabilities	$	75,482		$	10,638		$	86,120
Commitments and contingencies
Convertible preferred stock:
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $19,443 at March 31, 2018	—			3,138			3,138
Shareholders’ equity:
Preferred stock, no par value, 1,800,000 shares authorized, no shares issued	—			—			—
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $19,443 at March 31, 2018	3,138			(3,138		)	—
Common stock, no par value, 640,000,000 shares authorized, 53,666,718 shares issued and outstanding at March 31, 2018	307,634			2,888			310,522
Accumulated deficit	(194,861		)	(36,191		)	(231,052		)
Total shareholders’ equity	115,911			(36,441		)	79,470
Total liabilities, convertible preferred stock and shareholders’ equity	$	191,393		$	(22,665	)	$	168,728

The effect of the restatement on the previously filed consolidated statement of operations for the three and nine months ended March 31, 2018 is as follows:



	Three months ended March 31, 2018									Nine months ended March 31, 2018
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated			As Previously Reported			Adjustments			As Restated

Revenue:
License and transaction fees	$	27,020		$	(1,639	)	$	25,381		$	69,817		$	(1,525	)	$	68,292
Equipment sales	8,812			(601		)	8,211			24,138			(2,047		)	22,091
Total revenue	35,832			(2,240		)	33,592			93,955			(3,572		)	90,383

Costs of sales:
Cost of services	16,012			25			16,037			43,700			(60		)	43,640
Cost of equipment	7,876			(166		)	7,710			21,909			(364		)	21,545
Total costs of sales	23,888			(141		)	23,747			65,609			(424		)	65,185
Gross profit	11,944			(2,099		)	9,845			28,346			(3,148		)	25,198

Operating expenses:
Selling, general and administrative	9,572			57			9,629			24,647			911			25,558
Integration and acquisition costs	1,747			(70		)	1,677			5,844			(70		)	5,774
Depreciation and amortization	1,125			(20		)	1,105			2,107			(20		)	2,087
Total operating expenses	12,444			(33		)	12,411			32,598			821			33,419
Operating loss	(500		)	(2,066		)	(2,566		)	(4,252		)	(3,969		)	(8,221		)

Other income (expense):
Interest income	134			92			226			465			165			630
Interest expense	(612		)	(251		)	(863		)	(1,315		)	(791		)	(2,106		)
Total other expense, net	(478		)	(159		)	(637		)	(850		)	(626		)	(1,476		)

Loss before income taxes	(978		)	(2,225		)	(3,203		)	(5,102		)	(4,595		)	(9,697		)
Benefit (provision) for income taxes	2,138			(2,158		)	(20		)	(6,467		)	6,576			109

Net income (loss)	1,160			(4,383		)	(3,223		)	(11,569		)	1,981			(9,588		)
Preferred dividends	(334		)	—			(334		)	(668		)	—			(668		)
Net income (loss) applicable to common shares	$	826		$	(4,383	)	$	(3,557	)	$	(12,237	)	$	1,981		$	(10,256	)
Net income (loss) per common share
Basic	$	0.02		$	(0.09	)	$	(0.07	)	$	(0.24	)	$	0.04		$	(0.20	)
Diluted	$	0.02		$	(0.09	)	$	(0.07	)	$	(0.24	)	$	0.04		$	(0.20	)
Weighted average number of common shares outstanding
Basic	53,637,085			—			53,637,085			51,101,813			—			51,101,813
Diluted	54,234,566			(597,481		)	53,637,085			51,101,813			—			51,101,813

The effect of the restatement on the previously filed consolidated statement of cash flows for the nine months ended March 31, 2018 is as follows:



	Nine months ended March 31, 2018
($ in thousands)	As Previously Reported			Adjustments			As Restated

OPERATING ACTIVITIES:
Net loss	$	(11,569	)	$	1,981		$	(9,588	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Non-cash stock-based compensation	2,005			(581		)	1,424
(Gain) loss on disposal of property and equipment	(112		)	13			(99		)
Non-cash interest and amortization of debt discount	100			18			118
Bad debt expense	506			4			510
Provision for inventory reserve	—			1,361			1,361
Depreciation and amortization	5,858			(272		)	5,586
Excess tax benefits	67			—			67
Deferred income taxes, net	6,400			(6,554		)	(154		)
Recognition of deferred gain from sale-leaseback transactions	(143		)	143			—
Changes in operating assets and liabilities:
Accounts receivable	(12,972		)	3,008			(9,964		)
Finance receivables, net	11,114			(2,912		)	8,202
Sale of finance receivables	—			2,051			2,051
Inventory, net	(5,624		)	(2,153		)	(7,777		)
Prepaid expenses and other current assets	(564		)	919			355
Accounts payable and accrued expenses	13,808			1,447			15,255
Deferred revenue	(185		)	536			351
Income taxes payable	—			(30		)	(30		)
Net cash provided by operating activities	8,689			(1,021		)	7,668

INVESTING ACTIVITIES:
Purchase of property and equipment, including rentals	(3,005		)	(133		)	(3,138		)
Proceeds from sale of property and equipment	252			—			252
Cash paid for acquisitions, net of cash acquired	(65,181		)	—			(65,181		)
Net cash used in investing activities	(67,934		)	(133		)	(68,067		)

FINANCING ACTIVITIES:
Proceeds from collateralized borrowing from the transfer of finance receivables	—			1,075			1,075
Cash used in retirement of common stock	(156		)	—			(156		)
Proceeds from exercise of common stock options	109			—			109
Payment of debt issuance costs	(445		)	—			(445		)
Proceeds from issuance of long-term debt	25,100			—			25,100
Proceeds from revolving credit facility	12,500			—			12,500
Repayment of revolving credit facility	(2,500		)	—			(2,500		)
Issuance of common stock in public offering, net	39,888			—			39,888
Repayment of line of credit	(7,111		)	—			(7,111		)
Repayment of capital lease obligations and long-term debt	(3,778		)	27			(3,751		)
Net cash provided by financing activities	63,607			1,102			64,709

Net increase in cash and cash equivalents	4,362			(52		)	4,310
Cash and cash equivalents at beginning of year	12,745			—			12,745
Cash and cash equivalents at end of period	$	17,107		$	(52	)	$	17,055

The effect of the restatement on the previously filed consolidated balance sheet as of September 30, 2016 is as follows:



	As of September 30, 2016
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Assets
Current assets:
Cash and cash equivalents	$	18,198		$	—		$	18,198
Accounts receivable	5,840			(233		)	5,607
Finance receivables, net	3,349			—			3,349
Inventory, net	4,264			(338		)	3,926
Prepaid expenses and other current assets	1,439			(87		)	1,352
Deferred income taxes	2,271			(2,271		)	—
Total current assets	35,361			(2,929		)	32,432

Non-current assets:
Finance receivables due after one year	3,962			—			3,962
Other assets	163			—			163
Property and equipment, net	9,570			2,866			12,436
Deferred income taxes	25,568			(25,568		)	—
Intangibles, net	754			—			754
Goodwill	11,703			—			11,703
Total non-current assets	51,720			(22,702		)	29,018

Total assets	$	87,081		$	(25,631	)	$	61,450

Liabilities, convertible preferred stock and shareholders’ equity
Current liabilities:
Accounts payable	$	8,693		$	17		$	8,710
Accrued expenses	3,912			4,223			8,135
Line of credit, net	7,258			13			7,271
Capital lease obligations and current obligations under long-term debt	834			4,118			4,952
Income taxes payable	8			7			15
Deferred revenue	—			94			94
Deferred gain from sale-leaseback transactions	685			(685		)	—
Total current liabilities	21,390			7,787			29,177

Long-term liabilities:
Deferred income tax	—			47			47
Capital lease obligations and long-term debt, less current portion	1,517			—			1,517
Accrued expenses, less current portion	11			—			11
Total long-term liabilities	1,528			47			1,575

Total liabilities	$	22,918		$	7,834		$	30,752
Commitments and contingencies
Convertible preferred stock:
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $18,442 at September 30, 2016	—			3,138			3,138
Shareholders’ equity:
Preferred stock, no par value, 1,800,000 shares authorized, no shares issued	—			—			—
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $18,442 at September 30, 2016	3,138			(3,138		)	—
Common stock, no par value, 640,000,000 shares authorized, 40,295,425 shares issued and outstanding at September 30, 2016	244,996			—			244,996
Accumulated deficit	(183,971		)	(33,465		)	(217,436		)
Total shareholders’ equity	64,163			(36,603		)	27,560
Total liabilities, convertible preferred stock and shareholders’ equity	$	87,081		$	(25,631	)	$	61,450

The effect of the restatement on the previously filed consolidated statement of operations for the three months ended September 30, 2016 is as follows:



	Three months ended September 30, 2016
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Revenue:
License and transaction fees	$	16,365		$	(2	)	$	16,363
Equipment sales	5,223			(17		)	5,206
Total revenue	21,588			(19		)	21,569

Costs of sales:
Cost of services	11,243			(144		)	11,099
Cost of equipment	4,178			(5		)	4,173
Total costs of sales	15,421			(149		)	15,272
Gross profit	6,167			130			6,297

Operating expenses:
Selling, general and administrative	6,909			563			7,472
Depreciation and amortization	208			—			208
Total operating expenses	7,117			563			7,680
Operating loss	(950		)	(433		)	(1,383		)

Other income (expense):
Interest income	73			—			73
Interest expense	(212		)	(335		)	(547		)
Change in fair value of warrant liabilities	(1,490		)	—			(1,490		)
Total other expense, net	(1,629		)	(335		)	(1,964		)

Loss before income taxes	(2,579		)	(768		)	(3,347		)
Benefit (provision) for income taxes	115			(138		)	(23		)

Net loss	(2,464		)	(906		)	(3,370		)
Preferred dividends	(334		)	—			(334		)
Net loss applicable to common shares	$	(2,798	)	$	(906	)	$	(3,704	)
Net loss per common share
Basic	$	(0.07	)	$	(0.03	)	$	(0.10	)
Diluted	$	(0.07	)	$	(0.03	)	$	(0.10	)
Weighted average number of common shares outstanding
Basic	38,488,005			—			38,488,005
Diluted	38,488,005			—			38,488,005

The effect of the restatement on the previously filed consolidated statement of cash flows for the three months ended September 30, 2016 is as follows:



	Three months ended September 30, 2016
($ in thousands)	As Previously Reported			Adjustments			As Restated

OPERATING ACTIVITIES:
Net loss	$	(2,464	)	$	(906	)	$	(3,370	)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash stock-based compensation	211			—			211
Non-cash interest and amortization of debt discount	105			34			139
Bad debt expense	97			102			199
Provision for inventory reserve	—			248			248
Depreciation and amortization	1,301			302			1,603
Change in fair value of warrant liabilities	1,490			—			1,490
Deferred income taxes, net	(115		)	130			15
Recognition of deferred gain from sale-leaseback transactions	(215		)	215			—
Changes in operating assets and liabilities:
Accounts receivable	(1,038		)	35			(1,003		)
Finance receivables, net	(5		)	—			(5		)
Inventory, net	(2,223		)	(490		)	(2,713		)
Prepaid expenses and other current assets	(224		)	100			(124		)
Accounts payable and accrued expenses	(3,175		)	632			(2,543		)
Deferred revenue	—			(59		)	(59		)
Income taxes payable	(10		)	7			(3		)
Net cash used in operating activities	(6,265		)	350			(5,915		)

INVESTING ACTIVITIES:
Purchase of property and equipment, including rentals	(810		)	187			(623		)
Net cash used in investing activities	(810		)	187			(623		)

FINANCING ACTIVITIES:
Cash used in retirement of common stock	(31		)	—			(31		)
Proceeds from exercise of common stock warrants	6,193			—			6,193
Repayment of capital lease obligations and long-term debt	(161		)	(537		)	(698		)
Net cash provided by financing activities	6,001			(537		)	5,464

Net decrease in cash and cash equivalents	(1,074		)	—			(1,074		)
Cash and cash equivalents at beginning of year	19,272			—			19,272
Cash and cash equivalents at end of period	$	18,198		$	—		$	18,198

The effect of the restatement on the previously filed consolidated balance sheet as of December 31, 2016 is as follows:



	As of December 31, 2016
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Assets
Current assets:
Cash and cash equivalents	$	18,034		$	—		$	18,034
Accounts receivable	6,796			96			6,892
Finance receivables, net	1,442			—			1,442
Inventory, net	4,786			(348		)	4,438
Prepaid expenses and other current assets	1,764			(87		)	1,677
Deferred income taxes	2,271			(2,271		)	—
Total current assets	35,093			(2,610		)	32,483

Non-current assets:
Finance receivables due after one year	3,956			—			3,956
Other assets	145			(1		)	144
Property and equipment, net	9,433			2,561			11,994
Deferred income taxes	25,568			(25,568		)	—
Intangibles, net	711			—			711
Goodwill	11,492			—			11,492
Total non-current assets	51,305			(23,008		)	28,297

Total assets	$	86,398		$	(25,618	)	$	60,780

Liabilities, convertible preferred stock and shareholders’ equity
Current liabilities:
Accounts payable	$	9,090		$	19		$	9,109
Accrued expenses	2,912			4,629			7,541
Line of credit, net	7,078			13			7,091
Capital lease obligations and current obligations under long-term debt	766			3,565			4,331
Income taxes payable	6			15			21
Deferred revenue	—			478			478
Deferred gain from sale-leaseback transactions	470			(470		)	—
Total current liabilities	20,322			8,249			28,571

Long-term liabilities:
Deferred income taxes	—			63			63
Capital lease obligations and long-term debt, less current portion	1,394			—			1,394
Accrued expenses, less current portion	52			—			52
Total long-term liabilities	1,446			63			1,509

Total liabilities	$	21,768		$	8,312		$	30,080
Commitments and contingencies
Convertible preferred stock:
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $18,442 at December 31, 2016	—			3,138			3,138
Shareholders’ equity:
Preferred stock, no par value, 1,800,000 shares authorized, no shares issued	—			—			—
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $18,442 at December 31, 2016	3,138			(3,138		)	—
Common stock, no par value, 640,000,000 shares authorized, 40,321,941 shares issued and outstanding at December 31, 2016	245,230			—			245,230
Accumulated deficit	(183,738		)	(33,930		)	(217,668		)
Total shareholders’ equity	64,630			(37,068		)	27,562
Total liabilities, convertible preferred stock and shareholders’ equity	$	86,398		$	(25,618	)	$	60,780

The effect of the restatement on the previously filed consolidated statement of operations for the three and six months ended December 31, 2016 is as follows:



	Three months ended December 31, 2016									Six months ended December 31, 2016
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated			As Previously Reported			Adjustments			As Restated

Revenue:
License and transaction fees	$	16,639		$	(2	)	$	16,637		$	33,004		$	(4	)	$	33,000
Equipment sales	5,117			33			5,150			10,340			16			10,356
Total revenue	21,756			31			21,787			43,344			12			43,356

Costs of sales:
Cost of services	11,389			(143		)	11,246			22,632			(287		)	22,345
Cost of equipment	4,033			63			4,096			8,211			58			8,269
Total costs of sales	15,422			(80		)	15,342			30,843			(229		)	30,614
Gross profit	6,334			111			6,445			12,501			241			12,742

Operating expenses:
Selling, general and administrative	5,793			236			6,029			12,702			799			13,501
Depreciation and amortization	307			—			307			515			—			515
Total operating expenses	6,100			236			6,336			13,217			799			14,016
Operating income (loss)	234			(125		)	109			(716		)	(558		)	(1,274		)

Other income (expense):
Interest income	200			—			200			273			—			273
Interest expense	(201		)	(317		)	(518		)	(413		)	(652		)	(1,065		)
Change in fair value of warrant liabilities	—			—			—			(1,490		)	—			(1,490		)
Total other expense, net	(1		)	(317		)	(318		)	(1,630		)	(652		)	(2,282		)

Income (loss) before income taxes	233			(442		)	(209		)	(2,346		)	(1,210		)	(3,556		)
(Provision) benefit for income taxes	—			(23		)	(23		)	115			(161		)	(46		)

Net income (loss)	233			(465		)	(232		)	(2,231		)	(1,371		)	(3,602		)
Preferred dividends	—			—			—			(334		)	—			(334		)
Net income (loss) applicable to common shares	$	233		$	(465	)	$	(232	)	$	(2,565	)	$	(1,371	)	$	(3,936	)
Net income (loss) per common share
Basic	$	0.01		$	(0.02	)	$	(0.01	)	$	(0.07	)	$	(0.03	)	$	(0.10	)
Diluted	$	0.01		$	(0.02	)	$	(0.01	)	$	(0.07	)	$	(0.03	)	$	(0.10	)
Weighted average number of common shares outstanding
Basic	40,308,934			—			40,308,934			39,398,469			—			39,398,469
Diluted	40,730,712			(421,778		)	40,308,934			39,398,469			—			39,398,469

The effect of the restatement on the previously filed consolidated statement of cash flows for the six months ended December 31, 2016 is as follows:



	Six months ended December 31, 2016
($ in thousands)	As Previously Reported			Adjustments			As Restated

OPERATING ACTIVITIES:
Net loss	$	(2,231	)	$	(1,371	)	$	(3,602	)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash stock-based compensation	445			—			445
(Gain) loss on disposal of property and equipment	(31		)	(3		)	(34		)
Non-cash interest and amortization of debt discount	26			39			65
Bad debt expense	450			(119		)	331
Provision for inventory reserve	—			480			480
Depreciation and amortization	2,564			600			3,164
Change in fair value of warrant liabilities	1,490			—			1,490
Deferred income taxes, net	(115		)	145			30
Recognition of deferred gain from sale-leaseback transactions	(430		)	430			—
Changes in operating assets and liabilities:
Accounts receivable	(2,347		)	(71		)	(2,418		)
Finance receivables, net	2,119			—			2,119
Inventory, net	(2,689		)	(714		)	(3,403		)
Prepaid expenses and other current assets	(542		)	100			(442		)
Accounts payable and accrued expenses	(3,840		)	1,140			(2,700		)
Deferred revenue	—			326			326
Income taxes payable	(12		)	15			3
Net cash used in operating activities	(5,143		)	997			(4,146		)

INVESTING ACTIVITIES:
Purchase of property and equipment, including rentals	(1,944		)	192			(1,752		)
Proceeds from sale of property and equipment	61			—			61
Net cash used in investing activities	(1,883		)	192			(1,691		)

FINANCING ACTIVITIES:
Cash used in retirement of common stock	(31		)	—			(31		)
Proceeds from exercise of common stock warrants	6,193			—			6,193
Repayment of line of credit	—			(106		)	(106		)
Repayment of capital lease obligations and long-term debt	(374		)	(1,083		)	(1,457		)
Net cash provided by financing activities	5,788			(1,189		)	4,599

Net decrease in cash and cash equivalents	(1,238		)	—			(1,238		)
Cash and cash equivalents at beginning of year	19,272			—			19,272
Cash and cash equivalents at end of period	$	18,034		$	—		$	18,034

The effect of the restatement on the previously filed consolidated balance sheet as of March 31, 2017 is as follows:



	As of March 31, 2017
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Assets
Current assets:
Cash and cash equivalents	$	17,780		$	—		$	17,780
Accounts receivable	6,734			(72		)	6,662
Finance receivables, net	2,057			92			2,149
Inventory, net	4,147			(470		)	3,677
Prepaid expenses and other current assets	1,628			(34		)	1,594
Deferred income taxes	2,271			(2,271		)	—
Total current assets	34,617			(2,755		)	31,862

Non-current assets:
Finance receivables due after one year	7,548			—			7,548
Other assets	137			94			231
Property and equipment, net	9,173			2,168			11,341
Deferred income taxes	25,359			(25,359		)	—
Intangibles, net	666			—			666
Goodwill	11,492			—			11,492
Total non-current assets	54,375			(23,097		)	31,278

Total assets	$	88,992		$	(25,852	)	$	63,140

Liabilities, convertible preferred stock and shareholders’ equity
Current liabilities:
Accounts payable	$	11,529		$	290		$	11,819
Accrued expenses	3,111			5,681			8,792
Line of credit, net	7,021			13			7,034
Capital lease obligations and current obligations under long-term debt	786			2,999			3,785
Income taxes payable	—			23			23
Deferred revenue	—			310			310
Deferred gain from sale-leaseback transactions	255			(255		)	—
Total current liabilities	22,702			9,061			31,763

Long-term liabilities:
Deferred income taxes	—			78			78
Capital lease obligations and long-term debt, less current portion	1,239			—			1,239
Accrued expenses, less current portion	52			—			52
Total long-term liabilities	1,291			78			1,369

Total liabilities	$	23,993		$	9,139		$	33,132
Commitments and contingencies
Convertible preferred stock:
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $18,775 at March 31, 2017	—			3,138			3,138
Shareholders’ equity:
Preferred stock, no par value, 1,800,000 shares authorized, no shares issued	—			—			—
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $18,775 at March 31, 2017	3,138			(3,138		)	—
Common stock, no par value, 640,000,000 shares authorized, 40,327,675 shares issued and outstanding at March 31, 2017	245,463			—			245,463
Accumulated deficit	(183,602		)	(34,991		)	(218,593		)
Total shareholders’ equity	64,999			(38,129		)	26,870
Total liabilities, convertible preferred stock and shareholders’ equity	$	88,992		$	(25,852	)	$	63,140

The effect of the restatement on the previously filed consolidated statement of operations for the three and nine months ended March 31, 2017 is as follows:



	Three months ended March 31, 2017									Nine months ended March 31, 2017
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated			As Previously Reported			Adjustments			As Restated

Revenue:
License and transaction fees	$	17,459		$	(1	)	$	17,458		$	50,463		$	(5	)	$	50,458
Equipment sales	9,001			(158		)	8,843			19,341			(142		)	19,199
Total revenue	26,460			(159		)	26,301			69,804			(147		)	69,657

Costs of sales:
Cost of services	11,876			(143		)	11,733			34,508			(430		)	34,078
Cost of equipment	7,959			267			8,226			16,170			325			16,495
Total costs of sales	19,835			124			19,959			50,678			(105		)	50,573
Gross profit	6,625			(283		)	6,342			19,126			(42		)	19,084

Operating expenses:
Selling, general and administrative	5,947			595			6,542			18,649			1,394			20,043
Depreciation and amortization	259			—			259			774			—			774
Total operating expenses	6,206			595			6,801			19,423			1,394			20,817
Operating income (loss)	419			(878		)	(459		)	(297		)	(1,436		)	(1,733		)

Other income (expense):
Interest income	114			—			114			387			—			387
Interest expense	(188		)	(369		)	(557		)	(601		)	(1,021		)	(1,622		)
Change in fair value of warrant liabilities	—			—			—			(1,490		)	—			(1,490		)
Total other expense, net	(74		)	(369		)	(443		)	(1,704		)	(1,021		)	(2,725		)

Income (loss) before income taxes	345			(1,247		)	(902		)	(2,001		)	(2,457		)	(4,458		)
(Provision) benefit for income taxes	(209		)	186			(23		)	(94		)	25			(69		)

Net income (loss)	136			(1,061		)	(925		)	(2,095		)	(2,432		)	(4,527		)
Preferred dividends	(334		)	—			(334		)	(668		)	—			(668		)
Net loss applicable to common shares	$	(198	)	$	(1,061	)	$	(1,259	)	$	(2,763	)	$	(2,432	)	$	(5,195	)
Net loss per common share
Basic	$	—		$	(0.03	)	$	(0.03	)	$	(0.07	)	$	(0.06	)	$	(0.13	)
Diluted	$	—		$	(0.03	)	$	(0.03	)	$	(0.07	)	$	(0.06	)	$	(0.13	)
Weighted average number of common shares outstanding
Basic	40,327,697			—			40,327,697			39,703,690			—			39,703,690
Diluted	40,327,697			—			40,327,697			39,703,690			—			39,703,690

The effect of the restatement on the previously filed consolidated statement of cash flows for the nine months ended March 31, 2017 is as follows:



	Nine months ended March 31, 2017
($ in thousands)	As Previously Reported			Adjustments			As Restated

OPERATING ACTIVITIES:
Net loss	$	(2,095	)	$	(2,432	)	$	(4,527	)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash stock-based compensation	678			—			678
(Gain) loss on disposal of property and equipment	(59		)	—			(59		)
Non-cash interest and amortization of debt discount	98			—			98
Bad debt expense	577			(117		)	460
Provision for inventory reserve	—			804			804
Depreciation and amortization	3,774			905			4,679
Change in fair value of warrant liabilities	1,490			—			1,490
Deferred income taxes, net	94			(48		)	46
Recognition of deferred gain from sale-leaseback transactions	(646		)	646			—
Changes in operating assets and liabilities:
Accounts receivable	(2,388		)	72			(2,316		)
Finance receivables, net	(2,113		)	(67		)	(2,180		)
Inventory, net	(2,042		)	(915		)	(2,957		)
Prepaid expenses and other current assets	(406		)	(48		)	(454		)
Accounts payable and accrued expenses	(1,239		)	2,501			1,262
Deferred revenue	—			157			157
Income taxes payable	(18		)	22			4
Net cash used in operating activities	(4,295		)	1,480			(2,815		)

INVESTING ACTIVITIES:
Purchase of property and equipment, including rentals	(2,818		)	282			(2,536		)
Proceeds from sale of property and equipment	105			—			105
Net cash used in investing activities	(2,713		)	282			(2,431		)

FINANCING ACTIVITIES:
Cash used in retirement of common stock	(31		)	—			(31		)
Proceeds from exercise of common stock warrants	6,193			—			6,193
Payment of debt issuance costs	(90		)	—			(90		)
Repayment of line of credit	—			(106		)	(106		)
Repayment of capital lease obligations and long-term debt	(556		)	(1,656		)	(2,212		)
Net cash provided by financing activities	5,516			(1,762		)	3,754

Net decrease in cash and cash equivalents	(1,492		)	—			(1,492		)
Cash and cash equivalents at beginning of year	19,272			—			19,272
Cash and cash equivalents at end of period	$	17,780		$	—		$	17,780

The effect of the restatement on the previously filed consolidated statement of operations for the three months ended June 30, 2017 is as follows:



	Three months ended June 30, 2017
($ in thousands, except per share data)	As Previously Reported			Adjustments			As Restated

Revenue:
License and transaction fees	$	18,679		$	(3	)	$	18,676
Equipment sales	15,610			(2,507		)	13,103
Total revenue	34,289			(2,510		)	31,779

Costs of sales:
Cost of services	12,545			(103		)	12,442
Cost of equipment	14,224			(864		)	13,360
Total costs of sales	26,769			(967		)	25,802
Gross profit	7,520			(1,543		)	5,977

Operating expenses:
Selling, general and administrative	6,844			1,290			8,134
Depreciation and amortization	244			—			244
Total operating expenses	7,088			1,290			8,378
Operating income (loss)	432			(2,833		)	(2,401		)

Other income (expense):
Interest income	95			—			95
Interest expense	(291		)	(315		)	(606		)
Total other expense, net	(196		)	(315		)	(511		)

Income (loss) before income taxes	236			(3,148		)	(2,912		)
Benefit (provision) for income taxes	7			(33		)	(26		)

Net income (loss)	243			(3,181		)	(2,938		)
Preferred dividends	—			—			—
Net income (loss) applicable to common shares	$	243		$	(3,181	)	$	(2,938	)
Net income (loss) per common share
Basic	$	0.01		$	(0.08	)	$	(0.07	)
Diluted	$	0.01		$	(0.08	)	$	(0.07	)
Weighted average number of common shares outstanding
Basic	40,331,993			—			40,331,993
Diluted	40,772,482			(440,489		)	40,331,993

BUSINESS BUSINESS - Additional Information (Details) - USD ($)		3 Months Ended												6 Months Ended		9 Months Ended		12 Months Ended			36 Months Ended
	Oct. 09, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2017	Dec. 31, 2016	Mar. 31, 2018	Mar. 31, 2017	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2019
Subsequent Event [Line Items]
Cash and cash equivalents		$ 27,464,000				$ 83,964,000	$ 17,055,000	$ 15,360,000	$ 51,870,000	$ 12,745,000	$ 17,780,000	$ 18,034,000	$ 18,198,000	$ 15,360,000	$ 18,034,000	$ 17,055,000	$ 17,780,000	$ 27,464,000	$ 83,964,000	$ 12,745,000	$ 27,464,000
Working capital surplus		2,800,000																2,800,000			2,800,000
Accrued sales tax		16,559,000				12,686,000												16,559,000	12,686,000		16,559,000
Net loss		10,541,000	$ 4,510,000	$ 10,657,000	$ 6,320,000	$ 1,696,000	$ 3,223,000	$ 4,194,000	$ 2,171,000	$ 2,938,000	$ 925,000	$ 232,000	$ 3,370,000	$ 6,365,000	$ 3,602,000	$ 9,588,000	$ 4,527,000	32,028,000	$ 11,284,000	$ 7,465,000	50,800,000
Private Placement \| Subsequent Event
Subsequent Event [Line Items]
Shares sold (in shares)	3,800,000
Price per share (in USD per share)	$ 5.25
Gross proceeds from offering	$ 19,950,000
Cash placement fee	1,200,000
Commitment Letter \| Forecast \| Letter of Credit \| Subsequent Event
Subsequent Event [Line Items]
Maximum borrowing capacity	30,000,000
First draw	15,000,000
Second draw	$ 15,000,000
Annual interest	9.75%
Commitment fee	$ 1,200,000
Cash placement fee	$ 750,000
JPMorgan Chase Bank N.a
Subsequent Event [Line Items]
Revolving credit facility and term loan outstanding		$ 11,500,000																$ 11,500,000			$ 11,500,000

RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS - Consolidated Statements of Operation Impact of Adjustment (Details) - USD ($) $ in Thousands	3 Months Ended												6 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2017	Dec. 31, 2016	Mar. 31, 2018	Mar. 31, 2017	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenue	$ 38,225	$ 37,646	$ 34,406	$ 33,522	$ 42,125	$ 33,592	$ 31,532	$ 25,259	$ 31,779	$ 26,301	$ 21,787	$ 21,569	$ 56,791	$ 43,356	$ 90,383	$ 69,657	$ 143,799	$ 132,508	$ 101,436
Costs of sales						23,747	22,360	19,078	25,802	19,959	15,342	15,272	41,438	30,614	65,185	50,573	105,680	96,832	76,375
Gross profit	8,987	9,779	9,243	10,110	10,478	9,845	9,172	6,181	5,977	6,342	6,445	6,297	15,353	12,742	25,198	19,084	38,119	35,676	25,061
Operating income (loss)	$ (10,143)	$ (3,892)	$ (10,200)	$ (5,921)	$ (1,002)	(2,566)	(3,905)	(1,750)	(2,401)	(459)	109	(1,383)	(5,655)	(1,274)	(8,221)	(1,733)	(30,156)	(9,223)	(4,134)
Loss before income taxes						(3,203)	(4,351)	(2,143)	(2,912)	(902)	(209)	(3,347)	(6,494)	(3,556)	(9,697)	(4,458)	$ (31,766)	$ (11,385)	(7,370)
Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenue						(2,240)	(974)	(358)	(2,510)	(159)	31	(19)	(1,332)	12	(3,572)	(147)			(2,657)
Costs of sales						(141)	(945)	662	(967)	124	(80)	(149)	(283)	(229)	(424)	(105)			(1,072)
Gross profit						(2,099)	(29)	(1,020)	(1,543)	(283)	111	130	(1,049)	241	(3,148)	(42)			(1,585)
Operating income (loss)						(2,066)	(705)	(1,198)	(2,833)	(878)	(125)	(433)	(1,903)	(558)	(3,969)	(1,436)			(4,269)
Loss before income taxes						(2,225)	(908)	(1,462)	(3,148)	(1,247)	(442)	(768)	(2,370)	(1,210)	(4,595)	(2,457)			(5,605)
Adjustments \| Audit Committee Investigation-related Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenue						(768)	(866)	(411)	(2,457)	(111)	0	0	(1,277)	0	(2,045)	(111)			(2,568)
Costs of sales						(293)	(1,225)	165	(1,139)	(24)	0	0	(1,060)	0	(1,353)	(24)			(1,163)
Gross profit						(475)	359	(576)	(1,318)	(87)	0	0	(217)	0	(692)	(87)			(1,405)
Operating income (loss)						(9)	359	(576)	(1,318)	(87)	0	0	(217)	0	(226)	(87)			(1,405)
Loss before income taxes						(29)	357	(576)	(1,318)	(87)	0	0	(219)	0	(248)	(87)			(1,405)
Adjustments \| Significant Account and Transaction Review and Other
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenue						75	(47)	53	(53)	(49)	31	(18)	6	13	81	(36)			(89)
Costs of sales						231	313	497	173	147	(81)	(148)	810	(229)	1,041	(82)			91
Gross profit						(156)	(360)	(444)	(226)	(196)	112	130	(804)	242	(960)	46			(180)
Operating income (loss)						(461)	(775)	(622)	(1,516)	(790)	(124)	(434)	(1,397)	(558)	(1,858)	(1,348)			(2,864)
Loss before income taxes						$ (696)	$ (1,041)	$ (886)	$ (1,831)	$ (1,159)	$ (441)	$ (769)	$ (1,927)	$ (1,210)	$ (2,623)	$ (2,369)			$ (4,200)

RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS - Consolidated Balance Sheet Impact of Adjustments (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jul. 01, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Accounts receivable	$ 21,712		$ 15,748	$ 19,443	$ 14,707	$ 9,815	$ 6,834	$ 6,662	$ 6,892	$ 5,607
Finance receivables, net	6,260		4,603	2,234	3,296	1,441	9,743	2,149	1,442	3,349
Inventory, net	10,908		8,038	11,923	12,019	8,876	5,192	3,677	4,438	3,926
Prepaid expenses and other current assets	1,558	$ 1,180	929	1,278	1,610	1,056	879	1,594	1,677	1,352
Other assets	2,099	1,974	720	414	458	289	319	231	144	163
Property and equipment, net	9,180		11,273	12,243	12,443	10,701	11,111	11,341	11,994	12,436
Accounts payable	27,511		30,468	29,574	23,908	14,506	16,345	11,819	9,109	8,710
Accrued expenses	23,258		19,291	18,508	16,623	12,217	11,873	8,792	7,541	8,135
Capital lease obligations and current obligations under long-term debt	12,497		34,639	4,470	5,488	2,628	3,198	3,785	4,331	4,952
Deferred revenue	$ 1,539	$ 1,638	$ 511	511	730	439	268	310	478	94
Deferred gain from sale-leaseback transactions				0	0	0	0	0	0	0
Deferred gain from sale-leaseback transactions, less current portion					0	0	0
Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Accounts receivable				(3,723)	(765)	(473)	(359)	(72)	96	(233)
Finance receivables, net				(1,670)	(2,221)	(1,641)	(1,267)	92	0	0
Inventory, net				893	804	636	606	(470)	(348)	(338)
Prepaid expenses and other current assets				(591)	(361)	(66)	(89)	(34)	(87)	(87)
Other assets				(800)	(662)	(461)	(368)	94	(1)	0
Property and equipment, net				45	(179)	(1,149)	(1,000)	2,168	2,561	2,866
Accounts payable				128	133	295	291	290	19	17
Accrued expenses				10,547	9,825	8,422	7,743	5,681	4,629	4,223
Capital lease obligations and current obligations under long-term debt				(5)	367	(21)	(32)	2,999	3,565	4,118
Deferred revenue				70	135	439	268	310	478	94
Deferred gain from sale-leaseback transactions				(198)	(198)	(197)	(239)	(255)	(470)	(685)
Deferred gain from sale-leaseback transactions, less current portion					(49)	(99)	(100)
Adjustments \| Audit Committee Investigation-related Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Accounts receivable							(284)
Finance receivables, net							(1,267)
Inventory, net							1,106
Prepaid expenses and other current assets							25
Other assets							88
Accounts payable							270
Accrued expenses							803
Adjustments \| Significant Account and Transaction Review and Other
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Accounts receivable				127	(8)	77	(75)	61	110	(143)
Finance receivables, net				28	1,074	0		0	0	0
Inventory, net				(1,067)	(861)	(305)	(500)	(470)	(348)	(338)
Prepaid expenses and other current assets				(173)	(150)	(136)	(114)	13	13	13
Other assets				(693)	(600)	(543)	(456)	0	0	0
Property and equipment, net				(635)	(737)	(1,149)	(1,000)	2,168	2,561	2,865
Accounts payable				29	27	25	21	21	19	17
Accrued expenses				9,877	9,087	8,319	7,235	6,166	5,222	4,506
Capital lease obligations and current obligations under long-term debt				(5)	367	(21)	(32)	2,998	3,566	4,117
Deferred revenue				(27)	(27)	(27)	(27)	0	0	0
Deferred gain from sale-leaseback transactions				(198)	(198)	(198)	(239)	(255)	(470)	(685)
Deferred gain from sale-leaseback transactions, less current portion				$ 0	$ (49)	$ (99)	$ (100)	$ 0	$ 0	$ 0

RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS - Additional Information (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jul. 01, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Accumulated deficit	$ (264,400)	$ (232,372)	$ (232,748)	$ (231,052)	$ (227,829)	$ (223,635)	$ (221,531)	$ (218,593)	$ (217,668)	$ (217,436)
Decrease in deferred income taxes											$ (2,300)
Adjustments
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Accumulated deficit				$ (36,191)	$ (31,808)	$ (40,130)	$ (38,172)	$ (34,991)	$ (33,930)	$ (33,465)	(32,600)
Decrease in deferred income taxes											$ 27,800

RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS - Restated Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jul. 01, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016
Current assets:
Cash and cash equivalents	$ 27,464		$ 83,964	$ 17,055	$ 15,360	$ 51,870	$ 12,745	$ 17,780	$ 18,034	$ 18,198
Accounts receivable	21,712		15,748	19,443	14,707	9,815	6,834	6,662	6,892	5,607
Finance receivables, net	6,260		4,603	2,234	3,296	1,441	9,743	2,149	1,442	3,349
Inventory, net	10,908		8,038	11,923	12,019	8,876	5,192	3,677	4,438	3,926
Prepaid expenses and other current assets	1,558	$ 1,180	929	1,278	1,610	1,056	879	1,594	1,677	1,352
Total current assets	67,902		113,282	51,933	46,992	73,058	35,393	31,862	32,483	32,432
Non-current assets:
Finance receivables due after one year	11,596		13,246	9,870	11,728	7,742	8,607	7,548	3,956	3,962
Other assets	2,099	1,974	720	414	458	289	319	231	144	163
Property and equipment, net	9,180		11,273	12,243	12,443	10,701	11,111	11,341	11,994	12,436
Deferred income taxes				0	0	0	0	0	0	0
Intangibles, net	26,171		29,325	30,119	30,910	578	622	666	711	754
Goodwill	64,149		64,149	64,149	64,403	11,492	11,492	11,492	11,492	11,703
Total non-current assets	113,195		118,713	116,795	119,942	30,802	32,151	31,278	28,297	29,018
Total assets	181,097		231,995	168,728	166,934	103,860	67,544	63,140	60,780	61,450
Current liabilities:
Accounts payable	27,511		30,468	29,574	23,908	14,506	16,345	11,819	9,109	8,710
Accrued expenses	23,258		19,291	18,508	16,623	12,217	11,873	8,792	7,541	8,135
Line of credit, net						7,051	7,036	7,034	7,091	7,271
Capital lease obligations and current obligations under long-term debt	12,497		34,639	4,470	5,488	2,628	3,198	3,785	4,331	4,952
Income taxes payable	254		0		0	0	10	23	21	15
Deferred revenue	1,539	1,638	511	511	730	439	268	310	478	94
Deferred gain from sale-leaseback transactions				0	0	0	0	0	0	0
Total current liabilities	65,059		84,909	53,063	46,749	36,841	38,730	31,763	28,571	29,177
Long-term liabilities:
Deferred income taxes	71		67	96	91	109	94	78	63	47
Capital lease obligations and long-term debt, less current portion	276		1,127	22,895	24,570	1,049	1,061	1,239	1,394	1,517
Accrued expenses, less current portion	100		66	66	65	62	53	52	52	11
Deferred gain from sale-leaseback transactions, less current portion					0	0	0
Total long-term liabilities	447		1,260	33,057	34,726	1,220	1,208	1,369	1,509	1,575
Total liabilities	65,506		86,169	86,120	81,475	38,061	39,938	33,132	30,080	30,752
Commitments and contingencies
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $18,775 at June 30, 2017	3,138		3,138	3,138	3,138	3,138	3,138	3,138	3,138	3,138
Shareholders’ equity:
Preferred stock	0		0	0	0	0	0	0	0	0
Common stock, no par value, 640,000,000 shares authorized, 40,331,645 shares issued and outstanding at June 30, 2017	376,853		375,436	310,522	310,150	286,296	245,999	245,463	245,230	244,996
Accumulated deficit	(264,400)	$ (232,372)	(232,748)	(231,052)	(227,829)	(223,635)	(221,531)	(218,593)	(217,668)	(217,436)
Total shareholders’ equity	112,453		142,688	79,470	82,321	62,661	24,468	26,870	27,562	27,560	$ 19,328
Total liabilities, convertible preferred stock and shareholders’ equity	$ 181,097		$ 231,995	168,728	166,934	103,860	67,544	63,140	60,780	61,450
Series A Convertible Preferred Stock
Shareholders’ equity:
Preferred stock				0	0	0	0	0	0	0
As Previously Reported
Current assets:
Cash and cash equivalents				17,107	15,386	51,870	12,745	17,780	18,034	18,198
Accounts receivable				23,166	15,472	10,288	7,193	6,734	6,796	5,840
Finance receivables, net				3,904	5,517	3,082	11,010	2,057	1,442	3,349
Inventory, net				11,030	11,215	8,240	4,586	4,147	4,786	4,264
Prepaid expenses and other current assets				1,869	1,971	1,122	968	1,628	1,764	1,439
Total current assets				57,076	49,561	74,602	36,502	34,617	35,093	35,361
Non-current assets:
Finance receivables due after one year				9,679	11,215	7,742	8,607	7,548	3,956	3,962
Other assets				1,214	1,120	750	687	137	145	163
Property and equipment, net				12,198	12,622	11,850	12,111	9,173	9,433	9,570
Deferred income taxes				16,911	14,774	28,205	27,670	25,359	25,568	25,568
Intangibles, net				30,119	30,910	578	622	666	711	754
Goodwill				64,196	64,449	11,492	11,492	11,492	11,492	11,703
Total non-current assets				134,317	135,090	60,617	61,189	54,375	51,305	51,720
Total assets				191,393	184,651	135,219	97,691	88,992	86,398	87,081
Current liabilities:
Accounts payable				29,446	23,775	14,211	16,054	11,529	9,090	8,693
Accrued expenses				7,961	6,798	3,795	4,130	3,111	2,912	3,912
Line of credit, net						7,051	7,036	7,021	7,078	7,258
Capital lease obligations and current obligations under long-term debt				4,475	5,121	2,649	3,230	786	766	834
Income taxes payable					6	10	10	0	6	8
Deferred revenue				441	595	0	0	0	0	0
Deferred gain from sale-leaseback transactions				198	198	197	239	255	470	685
Total current liabilities				42,521	36,493	27,913	30,699	22,702	20,322	21,390
Long-term liabilities:
Deferred income taxes				0	0	0	0	0	0	0
Capital lease obligations and long-term debt, less current portion				22,895	23,874	1,049	1,061	1,239	1,394	1,517
Accrued expenses, less current portion				66	65	62	53	52	52	11
Deferred gain from sale-leaseback transactions, less current portion					49	99	100
Total long-term liabilities				32,961	33,988	1,210	1,214	1,291	1,446	1,528
Total liabilities				75,482	70,481	29,123	31,913	23,993	21,768	22,918
Commitments and contingencies
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $18,775 at June 30, 2017				0	0	0	0	0	0	0
Shareholders’ equity:
Preferred stock				0	0	0	0	0	0	0
Common stock, no par value, 640,000,000 shares authorized, 40,331,645 shares issued and outstanding at June 30, 2017				307,634	307,053	286,463	245,999	245,463	245,230	244,996
Accumulated deficit				(194,861)	(196,021)	(183,505)	(183,359)	(183,602)	(183,738)	(183,971)
Total shareholders’ equity				115,911	114,170	106,096	65,778	64,999	64,630	64,163
Total liabilities, convertible preferred stock and shareholders’ equity				191,393	184,651	135,219	97,691	88,992	86,398	87,081
As Previously Reported \| Series A Convertible Preferred Stock
Shareholders’ equity:
Preferred stock				3,138	3,138	3,138	3,138	3,138	3,138	3,138
Adjustments
Current assets:
Cash and cash equivalents				(52)	(26)	0	0	0	0	0
Accounts receivable				(3,723)	(765)	(473)	(359)	(72)	96	(233)
Finance receivables, net				(1,670)	(2,221)	(1,641)	(1,267)	92	0	0
Inventory, net				893	804	636	606	(470)	(348)	(338)
Prepaid expenses and other current assets				(591)	(361)	(66)	(89)	(34)	(87)	(87)
Total current assets				(5,143)	(2,569)	(1,544)	(1,109)	(2,755)	(2,610)	(2,929)
Non-current assets:
Finance receivables due after one year				191	513	0	0	0	0	0
Other assets				(800)	(662)	(461)	(368)	94	(1)	0
Property and equipment, net				45	(179)	(1,149)	(1,000)	2,168	2,561	2,866
Deferred income taxes				(16,911)	(14,774)	(28,205)	(27,670)	(25,359)	(25,568)	(25,568)
Intangibles, net				0	0	0	0	0	0	0
Goodwill				(47)	(46)	0	0	0	0	0
Total non-current assets				(17,522)	(15,148)	(29,815)	(29,038)	(23,097)	(23,008)	(22,702)
Total assets				(22,665)	(17,717)	(31,359)	(30,147)	(25,852)	(25,618)	(25,631)
Current liabilities:
Accounts payable				128	133	295	291	290	19	17
Accrued expenses				10,547	9,825	8,422	7,743	5,681	4,629	4,223
Line of credit, net						0	0	13	13	13
Capital lease obligations and current obligations under long-term debt				(5)	367	(21)	(32)	2,999	3,565	4,118
Income taxes payable					(6)	(10)	0	23	15	7
Deferred revenue				70	135	439	268	310	478	94
Deferred gain from sale-leaseback transactions				(198)	(198)	(197)	(239)	(255)	(470)	(685)
Total current liabilities				10,542	10,256	8,928	8,031	9,061	8,249	7,787
Long-term liabilities:
Deferred income taxes				96	91	109	94	78	63	47
Capital lease obligations and long-term debt, less current portion				0	696	0	0	0	0	0
Accrued expenses, less current portion				0	0	0	0	0	0	0
Deferred gain from sale-leaseback transactions, less current portion					(49)	(99)	(100)
Total long-term liabilities				96	738	10	(6)	78	63	47
Total liabilities				10,638	10,994	8,938	8,025	9,139	8,312	7,834
Commitments and contingencies
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preference of $18,775 at June 30, 2017				3,138	3,138	3,138	3,138	3,138	3,138	3,138
Shareholders’ equity:
Preferred stock				0	0	0	0	0	0	0
Common stock, no par value, 640,000,000 shares authorized, 40,331,645 shares issued and outstanding at June 30, 2017				2,888	3,097	(167)	0	0	0	0
Accumulated deficit				(36,191)	(31,808)	(40,130)	(38,172)	(34,991)	(33,930)	(33,465)	$ (32,600)
Total shareholders’ equity				(36,441)	(31,849)	(43,435)	(41,310)	(38,129)	(37,068)	(36,603)
Total liabilities, convertible preferred stock and shareholders’ equity				(22,665)	(17,717)	(31,359)	(30,147)	(25,852)	(25,618)	(25,631)
Adjustments \| Series A Convertible Preferred Stock
Shareholders’ equity:
Preferred stock				$ (3,138)	$ (3,138)	$ (3,138)	$ (3,138)	$ (3,138)	$ (3,138)	$ (3,138)

RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS - Restated Consolidated Balance Sheet - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	Jun. 30, 2019	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016
Accounting Changes and Error Corrections [Abstract]
Convertible preferred stock, shares authorized	900,000	900,000	900,000	900,000	900,000	900,000	900,000	900,000	900,000
Convertible preferred stock, shares issued	445,063	445,063	445,063	445,063	445,063	445,063	445,063	445,063	445,063
Convertible preferred stock, shares outstanding	445,063	445,063	445,063	445,063	445,063	445,063	445,063	445,063	445,063
Convertible preferred stock, liquidation preference value	$ 20,111	$ 19,443	$ 19,443	$ 19,109	$ 19,109	$ 18,775	$ 18,775	$ 18,442	$ 18,442
Preferred stock, par value (in dollars per share)	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0
Preferred stock, shares authorized	1,800,000	1,800,000	1,800,000	1,800,000	1,800,000	1,800,000	1,800,000	1,800,000	1,800,000
Preferred stock, shares issued	0	0	0	0	0	0	0	0	0
Common stock, par value (in dollars per share)	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0
Common stock, shares authorized	640,000,000	640,000,000	640,000,000	640,000,000	640,000,000	640,000,000	640,000,000	640,000,000	640,000,000
Common stock, shares issued	60,008,481	60,008,481	53,666,718	53,619,898	50,194,731	40,331,645	40,327,675	40,321,941	40,295,425
Common stock, shares outstanding	59,998,811	59,998,811	53,666,718	53,619,898	50,194,731	40,331,645	40,327,675	40,321,941	40,295,425

RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS - Restated Consolidated Statements of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended												6 Months Ended		9 Months Ended		12 Months Ended			36 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2017	Dec. 31, 2016	Mar. 31, 2018	Mar. 31, 2017	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2019
Revenue	$ 38,225	$ 37,646	$ 34,406	$ 33,522	$ 42,125	$ 33,592	$ 31,532	$ 25,259	$ 31,779	$ 26,301	$ 21,787	$ 21,569	$ 56,791	$ 43,356	$ 90,383	$ 69,657	$ 143,799	$ 132,508	$ 101,436
Costs of sales						23,747	22,360	19,078	25,802	19,959	15,342	15,272	41,438	30,614	65,185	50,573	105,680	96,832	76,375
Gross profit	8,987	9,779	9,243	10,110	10,478	9,845	9,172	6,181	5,977	6,342	6,445	6,297	15,353	12,742	25,198	19,084	38,119	35,676	25,061
Operating expenses:
Selling, general and administrative						9,629	9,005	6,924	8,134	6,542	6,029	7,472	15,929	13,501	25,558	20,043	47,068	34,647	28,177
Depreciation and amortization						1,105	737	245	244	259	307	208	982	515	2,087	774	4,430	3,204	1,018
Total operating expenses						12,411	13,077	7,931	8,378	6,801	6,336	7,680	21,008	14,016	33,419	20,817	68,275	44,899	29,195
Operating loss	(10,143)	(3,892)	(10,200)	(5,921)	(1,002)	(2,566)	(3,905)	(1,750)	(2,401)	(459)	109	(1,383)	(5,655)	(1,274)	(8,221)	(1,733)	(30,156)	(9,223)	(4,134)
Other income (expense):
Interest income						226	324	80	95	114	200	73	404	273	630	387	1,382	943	482
Interest expense						(863)	(770)	(473)	(606)	(557)	(518)	(547)	(1,243)	(1,065)	(2,106)	(1,622)	(2,992)	(3,105)	(2,228)
Change in fair value of warrant liabilities										0	0	(1,490)		(1,490)		(1,490)	0	0	(1,490)
Total other expense, net						(637)	(446)	(393)	(511)	(443)	(318)	(1,964)	(839)	(2,282)	(1,476)	(2,725)	(1,610)	(2,162)	(3,236)
Loss before income taxes						(3,203)	(4,351)	(2,143)	(2,912)	(902)	(209)	(3,347)	(6,494)	(3,556)	(9,697)	(4,458)	(31,766)	(11,385)	(7,370)
Provision for income taxes						(20)	157	(28)	(26)	(23)	(23)	(23)	129	(46)	109	(69)	(262)	101	(95)
Net loss	(10,541)	(4,510)	(10,657)	(6,320)	(1,696)	(3,223)	(4,194)	(2,171)	(2,938)	(925)	(232)	(3,370)	(6,365)	(3,602)	(9,588)	(4,527)	(32,028)	(11,284)	(7,465)	$ (50,800)
Preferred dividends	0	(334)	0	(334)	0	(334)	0	(334)	0	(334)	0	(334)	(334)	(334)	(668)	(668)	(668)	(668)	(668)
Net loss applicable to common shares	$ (10,541)	$ (4,844)	$ (10,657)	$ (6,654)	$ (1,696)	$ (3,557)	$ (4,194)	$ (2,505)	$ (2,938)	$ (1,259)	$ (232)	$ (3,704)	$ (6,699)	$ (3,936)	$ (10,256)	$ (5,195)	$ (32,696)	$ (11,952)	$ (8,133)
Net loss per common share
Basic (in USD per share)	$ (0.18)	$ (0.08)	$ (0.18)	$ (0.11)	$ (0.03)	$ (0.07)	$ (0.08)	$ (0.05)	$ (0.07)	$ (0.03)	$ (0.01)	$ (0.10)	$ (0.13)	$ (0.10)	$ (0.20)	$ (0.13)	$ (0.54)	$ (0.23)	$ (0.20)
Diluted (in USD per share)	$ (0.18)	$ (0.08)	$ (0.18)	$ (0.11)	$ (0.03)	$ (0.07)	$ (0.08)	$ (0.05)	$ (0.07)	$ (0.03)	$ (0.01)	$ (0.10)	$ (0.13)	$ (0.10)	$ (0.20)	$ (0.13)	$ (0.54)	$ (0.23)	$ (0.20)
Weighted average number of common shares outstanding
Basic (in shares)	60,065,978	60,065,053	60,059,936	60,053,912	54,064,750	53,637,085	52,150,106	47,573,364	40,331,993	40,327,697	40,308,934	38,488,005	49,861,735	39,398,469	51,101,813	39,703,690	60,061,243	51,840,518	39,860,335
Diluted (in shares)	60,065,978	60,065,053	60,059,936	60,053,912	54,064,750	53,637,085	52,150,106	47,573,364	40,331,993	40,327,697	40,308,934	38,488,005	49,861,735	39,398,469	51,101,813	39,703,690	60,061,243	51,840,518	39,860,335
Service
Revenue						$ 25,381	$ 23,514	$ 19,397	$ 18,676	$ 17,458	$ 16,637	$ 16,363	$ 42,911	$ 33,000	$ 68,292	$ 50,458	$ 123,554	$ 96,872	$ 69,134
Costs of sales						16,037	14,356	13,247	12,442	11,733	11,246	11,099	27,603	22,345	43,640	34,078	80,485	61,175	46,520
Product
Revenue						8,211	8,018	5,862	13,103	8,843	5,150	5,206	13,880	10,356	22,091	19,199	20,245	35,636	32,302
Costs of sales						7,710	8,004	5,831	13,360	8,226	4,096	4,173	13,835	8,269	21,545	16,495	$ 25,195	$ 35,657	29,855
As Previously Reported
Revenue						35,832	32,506	25,617	34,289	26,460	21,756	21,588	58,123	43,344	93,955	69,804			104,093
Costs of sales						23,888	23,305	18,416	26,769	19,835	15,422	15,421	41,721	30,843	65,609	50,678			77,447
Gross profit						11,944	9,201	7,201	7,520	6,625	6,334	6,167	16,402	12,501	28,346	19,126			26,646
Operating expenses:
Selling, general and administrative						9,572	8,329	6,746	6,844	5,947	5,793	6,909	15,075	12,702	24,647	18,649			25,493
Depreciation and amortization						1,125	737	245	244	259	307	208	982	515	2,107	774			1,018
Total operating expenses						12,444	12,401	7,753	7,088	6,206	6,100	7,117	20,154	13,217	32,598	19,423			26,511
Operating loss						(500)	(3,200)	(552)	432	419	234	(950)	(3,752)	(716)	(4,252)	(297)			135
Other income (expense):
Interest income						134	251	80	95	114	200	73	331	273	465	387			482
Interest expense						(612)	(494)	(209)	(291)	(188)	(201)	(212)	(703)	(413)	(1,315)	(601)			(892)
Change in fair value of warrant liabilities										0	0	(1,490)		(1,490)		(1,490)			(1,490)
Total other expense, net						(478)	(243)	(129)	(196)	(74)	(1)	(1,629)	(372)	(1,630)	(850)	(1,704)			(1,900)
Loss before income taxes						(978)	(3,443)	(681)	236	345	233	(2,579)	(4,124)	(2,346)	(5,102)	(2,001)			(1,765)
Provision for income taxes						2,138	(9,073)	468	7	(209)	0	115	(8,605)	115	(6,467)	(94)			(87)
Net loss						1,160	(12,516)	(213)	243	136	233	(2,464)	(12,729)	(2,231)	(11,569)	(2,095)			(1,852)
Preferred dividends						(334)	0	(334)	0	(334)	0	(334)	(334)	(334)	(668)	(668)			(668)
Net loss applicable to common shares						$ 826	$ (12,516)	$ (547)	$ 243	$ (198)	$ 233	$ (2,798)	$ (13,063)	$ (2,565)	$ (12,237)	$ (2,763)			$ (2,520)
Net loss per common share
Basic (in USD per share)						$ 0.02	$ (0.24)	$ (0.01)	$ 0.01	$ 0.00	$ 0.01	$ (0.07)	$ (0.26)	$ (0.07)	$ (0.24)	$ (0.07)			$ (0.06)
Diluted (in USD per share)						$ 0.02	$ (0.24)	$ (0.01)	$ 0.01	$ 0.00	$ 0.01	$ (0.07)	$ (0.26)	$ (0.07)	$ (0.24)	$ (0.07)			$ (0.06)
Weighted average number of common shares outstanding
Basic (in shares)						53,637,085	52,150,106	47,573,364	40,331,993	40,327,697	40,308,934	38,488,005	49,861,735	39,398,469	51,101,813	39,703,690			39,860,335
Diluted (in shares)						54,234,566	52,150,106	47,573,364	40,772,482	40,327,697	40,730,712	38,488,005	49,861,735	39,398,469	51,101,813	39,703,690			39,860,335
As Previously Reported \| Service
Revenue						$ 27,020	$ 22,853	$ 19,944	$ 18,679	$ 17,459	$ 16,639	$ 16,365	$ 42,797	$ 33,004	$ 69,817	$ 50,463			$ 69,142
Costs of sales						16,012	14,362	13,326	12,545	11,876	11,389	11,243	27,688	22,632	43,700	34,508			47,053
As Previously Reported \| Product
Revenue						8,812	9,653	5,673	15,610	9,001	5,117	5,223	15,326	10,340	24,138	19,341			34,951
Costs of sales						7,876	8,943	5,090	14,224	7,959	4,033	4,178	14,033	8,211	21,909	16,170			30,394
Adjustments
Revenue						(2,240)	(974)	(358)	(2,510)	(159)	31	(19)	(1,332)	12	(3,572)	(147)			(2,657)
Costs of sales						(141)	(945)	662	(967)	124	(80)	(149)	(283)	(229)	(424)	(105)			(1,072)
Gross profit						(2,099)	(29)	(1,020)	(1,543)	(283)	111	130	(1,049)	241	(3,148)	(42)			(1,585)
Operating expenses:
Selling, general and administrative						57	676	178	1,290	595	236	563	854	799	911	1,394			2,684
Depreciation and amortization						(20)	0	0	0	0	0	0	0	0	(20)	0			0
Total operating expenses						(33)	676	178	1,290	595	236	563	854	799	821	1,394			2,684
Operating loss						(2,066)	(705)	(1,198)	(2,833)	(878)	(125)	(433)	(1,903)	(558)	(3,969)	(1,436)			(4,269)
Other income (expense):
Interest income						92	73	0	0	0	0	0	73	0	165	0			0
Interest expense						(251)	(276)	(264)	(315)	(369)	(317)	(335)	(540)	(652)	(791)	(1,021)			(1,336)
Change in fair value of warrant liabilities										0	0	0		0		0			0
Total other expense, net						(159)	(203)	(264)	(315)	(369)	(317)	(335)	(467)	(652)	(626)	(1,021)			(1,336)
Loss before income taxes						(2,225)	(908)	(1,462)	(3,148)	(1,247)	(442)	(768)	(2,370)	(1,210)	(4,595)	(2,457)			(5,605)
Provision for income taxes						(2,158)	9,230	(496)	(33)	186	(23)	(138)	8,734	(161)	6,576	25			(8)
Net loss						(4,383)	8,322	(1,958)	(3,181)	(1,061)	(465)	(906)	6,364	(1,371)	1,981	(2,432)			(5,613)
Preferred dividends						0	0	0	0	0	0	0	0	0	0	0			0
Net loss applicable to common shares						$ (4,383)	$ 8,322	$ (1,958)	$ (3,181)	$ (1,061)	$ (465)	$ (906)	$ 6,364	$ (1,371)	$ 1,981	$ (2,432)			$ (5,613)
Net loss per common share
Basic (in USD per share)						$ (0.09)	$ 0.16	$ (0.04)	$ (0.08)	$ (0.03)	$ (0.02)	$ (0.03)	$ 0.13	$ (0.03)	$ 0.04	$ (0.06)			$ (0.14)
Diluted (in USD per share)						$ (0.09)	$ 0.16	$ (0.04)	$ (0.08)	$ (0.03)	$ (0.02)	$ (0.03)	$ 0.13	$ (0.03)	$ 0.04	$ (0.06)			$ (0.14)
Weighted average number of common shares outstanding
Basic (in shares)						0	0	0	0	0	0	0	0	0	0	0			0
Diluted (in shares)						(597,481)	0	0	(440,489)	0	(421,778)	0	0	0	0	0			0
Adjustments \| Service
Revenue						$ (1,639)	$ 661	$ (547)	$ (3)	$ (1)	$ (2)	$ (2)	$ 114	$ (4)	$ (1,525)	$ (5)			$ (8)
Costs of sales						25	(6)	(79)	(103)	(143)	(143)	(144)	(85)	(287)	(60)	(430)			(533)
Adjustments \| Product
Revenue						(601)	(1,635)	189	(2,507)	(158)	33	(17)	(1,446)	16	(2,047)	(142)			(2,649)
Costs of sales						$ (166)	$ (939)	$ 741	$ (864)	$ 267	$ 63	$ (5)	$ (198)	$ 58	$ (364)	$ 325			$ (539)

RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS - Restated Consolidated Statement of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended												6 Months Ended		9 Months Ended		12 Months Ended			36 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2017	Dec. 31, 2016	Mar. 31, 2018	Mar. 31, 2017	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2019
OPERATING ACTIVITIES:
Net loss	$ (10,541)	$ (4,510)	$ (10,657)	$ (6,320)	$ (1,696)	$ (3,223)	$ (4,194)	$ (2,171)	$ (2,938)	$ (925)	$ (232)	$ (3,370)	$ (6,365)	$ (3,602)	$ (9,588)	$ (4,527)	$ (32,028)	$ (11,284)	$ (7,465)	$ (50,800)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Non-cash stock-based compensation								409				211	984	445	1,424	678	1,750	1,794	1,214
(Gain) loss on disposal of property and equipment								(18)					(80)	(34)	(99)	(59)	672	(131)	(177)
Non-cash interest and amortization of debt discount								17				139	94	65	118	98	301	140	113
Bad debt expense								168				199	382	331	510	460	2,534	471	557
Provision for inventory reserve								221				248	1,091	480	1,361	804	3,172	1,467	877
Depreciation and amortization								1,370				1,603	3,278	3,164	5,586	4,679	8,009	7,829	5,956
Change in fair value of warrant liabilities										0	0	1,490		1,490		1,490	0	0	1,490
Deferred income taxes, net								16				15	(159)	30	(154)	46	(7)	(183)	62
Recognition of deferred gain from sale-leaseback transactions								0				0	0	0	0	0			0
Changes in operating assets and liabilities:
Accounts receivable								(3,149)				(1,003)	(5,332)	(2,418)	(9,964)	(2,316)	(8,488)	(6,234)	(2,538)
Finance receivables, net								9,168				(5)	7,332	2,119	8,202	(2,180)	(8)	2,228	(10,832)
Inventory, net								(3,900)				(2,713)	(7,615)	(3,403)	(7,777)	(2,957)	(5,242)	(3,661)	(4,463)
Prepaid expenses and other current assets								(103)				(124)	(2)	(442)	355	(454)	(395)	377	153
Accounts payable and accrued expenses																			8,874
Deferred revenue								171				(59)	570	326	351	157	(98)	351	115
Income taxes payable								(55)				(3)	(40)	3	(30)	4	254	(13)	(8)
Net cash (used in) provided by operating activities								721				(5,915)	1,909	(4,146)	7,668	(2,815)	(28,701)	12,431	(6,072)
INVESTING ACTIVITIES:
Purchase of property and equipment, including rentals								(720)				(623)	(1,734)	(1,752)	(3,138)	(2,536)	(4,346)	(3,978)	(3,787)
Proceeds from sale of property and equipment								45					157	61	252	105	116	298	348
Net cash used in investing activities								(675)				(623)	(66,758)	(1,691)	(68,067)	(2,431)	(4,230)	(68,861)	(3,439)
FINANCING ACTIVITIES:
Cash used in retirement of common stock												(31)		(31)	(156)	(31)	(81)	(552)	(31)
Proceeds from exercise of common stock warrants												6,193		6,193		6,193	0	0	6,193
Payment of debt issuance costs													(445)		(445)	(90)	(156)	(445)	(90)
Repayment of line of credit													(7,111)	(106)	(7,111)	(106)	0	(7,111)	(106)
Repayment of capital lease obligations and long-term debt								(809)				(698)	(1,043)	(1,457)	(3,751)	(2,212)	(23,254)	(5,355)	(2,982)
Net cash (used in) provided by financing activities								39,079				5,464	67,464	4,599	64,709	3,754	(23,569)	127,649	2,984
Net (decrease) increase in cash and cash equivalents								39,125				(1,074)	2,615	(1,238)	4,310	(1,492)	(56,500)	71,219	(6,527)
Cash and cash equivalents at beginning of year				$ 83,964	17,055	15,360	51,870	12,745	17,780	18,034	18,198	19,272	12,745	19,272	12,745	19,272	83,964	12,745	19,272	19,272
Cash and cash equivalents at end of year	$ 27,464				83,964	17,055	15,360	51,870	12,745	17,780	18,034	18,198	15,360	18,034	17,055	17,780	$ 27,464	83,964	12,745	27,464
As Previously Reported
OPERATING ACTIVITIES:
Net loss						1,160	(12,516)	(213)	243	136	233	(2,464)	(12,729)	(2,231)	(11,569)	(2,095)			(1,852)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Non-cash stock-based compensation								576				211	1,356	445	2,005	678			1,214
(Gain) loss on disposal of property and equipment								(18)					(83)	(31)	(112)	(59)			(177)
Non-cash interest and amortization of debt discount								15				105	86	26	100	98			113
Bad debt expense								118				97	291	450	506	577			764
Provision for inventory reserve								0				0	0	0	0	0			0
Depreciation and amortization								1,492				1,301	3,476	2,564	5,858	3,774			5,591
Change in fair value of warrant liabilities										0	0	1,490		1,490		1,490			1,490
Deferred income taxes, net								(535)				(115)	8,537	(115)	6,400	94			54
Recognition of deferred gain from sale-leaseback transactions								(43)				(215)	(93)	(430)	(143)	(646)			(560)
Changes in operating assets and liabilities:
Accounts receivable								(3,192)				(1,038)	(5,290)	(2,347)	(12,972)	(2,388)			(2,988)
Finance receivables, net								8,771				(5)	7,958	2,119	11,114	(2,113)			(12,119)
Inventory, net								(3,648)				(2,223)	(5,822)	(2,689)	(5,624)	(2,042)			(2,399)
Prepaid expenses and other current assets								(217)				(224)	(606)	(542)	(564)	(406)			(304)
Accounts payable and accrued expenses																			4,410
Deferred revenue								0				0	0	0	(185)	0			0
Income taxes payable								0				(10)	40	(12)	0	(18)			(8)
Net cash (used in) provided by operating activities								1,005				(6,265)	4,138	(5,143)	8,689	(4,295)			(6,771)
INVESTING ACTIVITIES:
Purchase of property and equipment, including rentals								(992)				(810)	(1,767)	(1,944)	(3,005)	(2,818)			(4,041)
Proceeds from sale of property and equipment								45					157	61	252	105			348
Net cash used in investing activities								(947)				(810)	(66,791)	(1,883)	(67,934)	(2,713)			(3,693)
FINANCING ACTIVITIES:
Cash used in retirement of common stock												(31)		(31)	(156)	(31)			(31)
Proceeds from exercise of common stock warrants												6,193		6,193		6,193			6,193
Payment of debt issuance costs													(445)		(445)	(90)			(90)
Repayment of line of credit													(7,111)	0	(7,111)	0			(106)
Repayment of capital lease obligations and long-term debt								(821)				(161)	(2,138)	(374)	(3,778)	(556)			(2,029)
Net cash (used in) provided by financing activities								39,067				6,001	65,294	5,788	63,607	5,516			3,937
Net (decrease) increase in cash and cash equivalents								39,125				(1,074)	2,641	(1,238)	4,362	(1,492)			(6,527)
Cash and cash equivalents at beginning of year					17,107	15,386	51,870	12,745	17,780	18,034	18,198	19,272	12,745	19,272	12,745	19,272		12,745	19,272	19,272
Cash and cash equivalents at end of year						17,107	15,386	51,870	12,745	17,780	18,034	18,198	15,386	18,034	17,107	17,780			12,745
Adjustments
OPERATING ACTIVITIES:
Net loss						(4,383)	8,322	(1,958)	(3,181)	(1,061)	(465)	(906)	6,364	(1,371)	1,981	(2,432)			(5,613)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Non-cash stock-based compensation								(167)				0	(372)	0	(581)	0			0
(Gain) loss on disposal of property and equipment								0					3	(3)	13	0			0
Non-cash interest and amortization of debt discount								2				34	8	39	18	0			0
Bad debt expense								50				102	91	(119)	4	(117)			(207)
Provision for inventory reserve								221				248	1,091	480	1,361	804			877
Depreciation and amortization								(122)				302	(198)	600	(272)	905			365
Change in fair value of warrant liabilities										0	0	0		0		0			0
Deferred income taxes, net								551				130	(8,696)	145	(6,554)	(48)			8
Recognition of deferred gain from sale-leaseback transactions								43				215	93	430	143	646			560
Changes in operating assets and liabilities:
Accounts receivable								43				35	(42)	(71)	3,008	72			450
Finance receivables, net								397				0	(626)	0	(2,912)	(67)			1,287
Inventory, net								(252)				(490)	(1,793)	(714)	(2,153)	(915)			(2,064)
Prepaid expenses and other current assets								114				100	604	100	919	(48)			457
Accounts payable and accrued expenses																			4,464
Deferred revenue								171				(59)	570	326	536	157			115
Income taxes payable								(55)				7	(80)	15	(30)	22			0
Net cash (used in) provided by operating activities								(284)				350	(2,229)	997	(1,021)	1,480			699
INVESTING ACTIVITIES:
Purchase of property and equipment, including rentals								272				187	33	192	(133)	282			254
Proceeds from sale of property and equipment								0					0	0	0	0			0
Net cash used in investing activities								272				187	33	192	(133)	282			254
FINANCING ACTIVITIES:
Cash used in retirement of common stock												0		0	0	0			0
Proceeds from exercise of common stock warrants												0		0		0			0
Payment of debt issuance costs													0		0	0			0
Repayment of line of credit													0	(106)	0	(106)			0
Repayment of capital lease obligations and long-term debt								12				(537)	1,095	(1,083)	27	(1,656)			(953)
Net cash (used in) provided by financing activities								12				(537)	2,170	(1,189)	1,102	(1,762)			(953)
Net (decrease) increase in cash and cash equivalents								0				0	(26)	0	(52)	0			0
Cash and cash equivalents at beginning of year					$ (52)	(26)	0	0	0	0	0	0	0	0	0	0		$ 0	0	$ 0
Cash and cash equivalents at end of year						$ (52)	$ (26)	$ 0	$ 0	$ 0	$ 0	$ 0	$ (26)	$ 0	$ (52)	$ 0			$ 0

ACCOUNTING POLICIES - Finance Receivables (Details)	12 Months Ended
ACCOUNTING POLICIES - Finance Receivables (Details)	Jun. 30, 2019
Accounting Policies [Abstract]
Term of notes receivable or quick start leases	60 months

ACCOUNTING POLICIES - Concentration of Risks And Revenue Recognition (Details) - Revenue from Rights Concentration Risk - customer	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Concentration Risk [Line Items]
Number of customers	1
Customer One
Concentration Risk [Line Items]
Concentration percentage	17.00%	16.00%	25.00%

ACCOUNTING POLICIES - Revenue Recognition Under ASC 605 (Details)	12 Months Ended
	Jun. 30, 2019
Property, Plant and Equipment [Line Items]
Term of non-cancelable lease with agreement	5 years
Term of cancellable rental	36 months
Minimum
Property, Plant and Equipment [Line Items]
Cancellation period	30 days
Maximum
Property, Plant and Equipment [Line Items]
Cancellation period	60 days

ACCOUNTING POLICIES - Advertising (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Accounting Policies [Abstract]
Advertising expense	$ 0.7	$ 0.7	$ 0.4

ACCOUNTING POLICIES - Research and Development (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Accounting Policies [Abstract]
Research and development expense	$ 4.6	$ 1.3	$ 1.4

ACCOUNTING POLICIES - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands	3 Months Ended								6 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2017	Dec. 31, 2016	Mar. 31, 2018	Mar. 31, 2017	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
(Provision) benefit for income taxes		$ (20)	$ 157	$ (28)	$ (26)	$ (23)	$ (23)	$ (23)	$ 129	$ (46)	$ 109	$ (69)	$ (262)	$ 101	$ (95)
Deferred tax asset, current						$ 0	$ 0	$ 0		$ 0		$ 0				$ 2,300
Deferred tax assets, noncurrent																$ 2,300
Accounting Standards Update 2016-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
(Provision) benefit for income taxes	$ 31													$ 67

ACQUISITION - Cantaloupe Systems, Inc. (Details) - USD ($) $ in Thousands		3 Months Ended												6 Months Ended		9 Months Ended		12 Months Ended			36 Months Ended
	Nov. 09, 2017	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2017	Dec. 31, 2016	Mar. 31, 2018	Mar. 31, 2017	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2019
Business Acquisition [Line Items]
Principal amount	$ 35,000
Weighted average useful life																		12 years 3 months 1 day
Goodwill		$ 64,149				$ 64,149	$ 64,149	$ 64,403	$ 11,492	$ 11,492	$ 11,492	$ 11,492	$ 11,703	$ 64,403	$ 11,492	$ 64,149	$ 11,492	$ 64,149	$ 64,149	$ 11,492	$ 64,149
Net earnings		$ (10,541)	$ (4,510)	$ (10,657)	$ (6,320)	$ (1,696)	$ (3,223)	$ (4,194)	$ (2,171)	$ (2,938)	$ (925)	$ (232)	$ (3,370)	$ (6,365)	$ (3,602)	$ (9,588)	$ (4,527)	$ (32,028)	(11,284)	(7,465)	$ (50,800)
Cantaloupe
Business Acquisition [Line Items]
Total consideration	88,207
Intangible assets	30,800
Weighted average useful life																		13 years
Goodwill	52,658
Acquiree revenue																			19,200
Net earnings																			$ 200
Customer Relationships
Business Acquisition [Line Items]
Weighted average useful life																		16 years 3 months 1 day
Customer Relationships \| Cantaloupe
Business Acquisition [Line Items]
Intangible assets	18,900
Developed Technology Rights \| Cantaloupe
Business Acquisition [Line Items]
Intangible assets	10,300
Trade Names \| Cantaloupe
Business Acquisition [Line Items]
Intangible assets	1,600
Term Loan
Business Acquisition [Line Items]
Principal amount	25,000
Revolving Credit Facility
Business Acquisition [Line Items]
Principal amount	$ 10,000
Minimum \| Cantaloupe
Business Acquisition [Line Items]
Useful lives																		6 years
Minimum \| Customer Relationships
Business Acquisition [Line Items]
Useful lives																		10 years	10 years
Maximum \| Cantaloupe
Business Acquisition [Line Items]
Useful lives																		18 years
Maximum \| Customer Relationships
Business Acquisition [Line Items]
Useful lives																		18 years	18 years
Excluded from unaudited pro forma earnings \| Cantaloupe
Business Acquisition [Line Items]
Integration and acquisition costs																			$ 7,100	$ 7,100

ACQUISITION - Fair Value of the Purchase Price Consideration (Details) - USD ($) $ in Thousands		6 Months Ended	9 Months Ended	12 Months Ended
	Nov. 09, 2017	Dec. 31, 2017	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Business Acquisition [Line Items]
Cash consideration, net of cash acquired		$ 65,181	$ 65,181	$ 0	$ 65,181	$ 0
USAT shares issued as stock consideration (As Restated)				$ 0	23,279	$ 0
Cantaloupe
Business Acquisition [Line Items]
Cash consideration, net of cash acquired	$ 65,181
USAT shares issued as stock consideration (As Restated)	23,279
Post-closing adjustment for working capital	(253)				$ (300)
Total consideration (As Restated)	$ 88,207

ACQUISITION - Fair Value of the Total Considerations Transferred (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Nov. 09, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016
Business Acquisition [Line Items]
Goodwill	$ 64,149	$ 64,149	$ 64,149	$ 64,403		$ 11,492	$ 11,492	$ 11,492	$ 11,492	$ 11,703
Cantaloupe
Business Acquisition [Line Items]
Accounts receivable					$ 2,921
Finance receivables					1,480
Inventory					282
Prepaid expense and other current assets					646
Finance receivables due after one year					3,603
Other assets					50
Property and equipment					2,234
Intangible assets					30,800
Total assets acquired					42,016
Accounts payable					(1,591)
Accrued expenses					(2,401)
Deferred revenue					(518)
Capital lease obligations and current obligations under long-term debt					(666)
Capital lease obligations and long-term debt, less current portion					(1,134)
Deferred income tax liabilities					(157)
Total identifiable net assets					35,549
Goodwill					52,658
Total fair value					$ 88,207

ACQUISITION - Pro Forma Nonrecurring Adjustments (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended												6 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2017	Dec. 31, 2016	Mar. 31, 2018	Mar. 31, 2017	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Weighted average number of common shares outstanding
Basic (in shares)	60,065,978	60,065,053	60,059,936	60,053,912	54,064,750	53,637,085	52,150,106	47,573,364	40,331,993	40,327,697	40,308,934	38,488,005	49,861,735	39,398,469	51,101,813	39,703,690	60,061,243	51,840,518	39,860,335
Diluted (in shares)	60,065,978	60,065,053	60,059,936	60,053,912	54,064,750	53,637,085	52,150,106	47,573,364	40,331,993	40,327,697	40,308,934	38,488,005	49,861,735	39,398,469	51,101,813	39,703,690	60,061,243	51,840,518	39,860,335
Cantaloupe
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Revenue																		$ 140,575	$ 121,373
Net loss attributable to USAT																		(7,256)	(13,828)
Net loss attributable to USAT common shares																		$ (7,924)	$ (14,496)
Net loss per share
Basic (in dollars per share)																		$ (0.15)	$ (0.27)
Diluted (in dollars per share)																		$ (0.15)	$ (0.27)
Weighted average number of common shares outstanding
Basic (in shares)																		53,717,133	52,849,217
Diluted (in shares)																		53,717,133	52,849,217

REVENUE - Affect of Adoption of ASC 606 (Details) - USD ($) $ in Thousands	3 Months Ended												6 Months Ended		9 Months Ended		12 Months Ended			36 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2017	Dec. 31, 2016	Mar. 31, 2018	Mar. 31, 2017	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2019	Jul. 01, 2018
ASSETS
Prepaid expenses and other current assets	$ 1,558				$ 929	$ 1,278	$ 1,610	$ 1,056	$ 879	$ 1,594	$ 1,677	$ 1,352	$ 1,610	$ 1,677	$ 1,278	$ 1,594	$ 1,558	$ 929	$ 879	$ 1,558	$ 1,180
Other assets	2,099				720	414	458	289	319	231	144	163	458	144	414	231	2,099	720	319	2,099	1,974
LIABILITIES
Deferred revenue	1,539				511	511	730	439	268	310	478	94	730	478	511	310	1,539	511	268	1,539	1,638
SHAREHOLDERS' EQUITY
Accumulated deficit	(264,400)				(232,748)	(231,052)	(227,829)	(223,635)	(221,531)	(218,593)	(217,668)	(217,436)	(227,829)	(217,668)	(231,052)	(218,593)	(264,400)	(232,748)	(221,531)	(264,400)	(232,372)
STATEMENT OF OPERATIONS
License and transaction fees	38,225	$ 37,646	$ 34,406	$ 33,522	42,125	33,592	31,532	25,259	31,779	26,301	21,787	21,569	56,791	43,356	90,383	69,657	143,799	132,508	101,436
Selling, general and administrative						9,629	9,005	6,924	8,134	6,542	6,029	7,472	15,929	13,501	25,558	20,043	47,068	34,647	28,177
Net loss	(10,541)	$ (4,510)	$ (10,657)	$ (6,320)	(1,696)	(3,223)	(4,194)	(2,171)	(2,938)	(925)	(232)	(3,370)	(6,365)	(3,602)	(9,588)	(4,527)	(32,028)	(11,284)	(7,465)	(50,800)
Calculated under Revenue Guidance in Effect before Topic 606
ASSETS
Prepaid expenses and other current assets	1,257				929												1,257	929		1,257
Other assets	593				720												593	720		593
LIABILITIES
Deferred revenue	610				511												610	511		610
SHAREHOLDERS' EQUITY
Accumulated deficit	(265,278)				$ (232,748)												(265,278)	(232,748)		(265,278)
STATEMENT OF OPERATIONS
Selling, general and administrative																	47,371
Net loss																	(32,528)
Adjustment \| ASC 606
ASSETS
Prepaid expenses and other current assets	(301)																(301)			(301)	251
Other assets	(1,506)																(1,506)			(1,506)	1,254
LIABILITIES
Deferred revenue	(929)																(929)			(929)	1,127
SHAREHOLDERS' EQUITY
Accumulated deficit	$ (878)																(878)			$ (878)	$ 376
STATEMENT OF OPERATIONS
Selling, general and administrative																	303
Net loss																	(500)
Service
STATEMENT OF OPERATIONS
License and transaction fees						$ 25,381	$ 23,514	$ 19,397	$ 18,676	$ 17,458	$ 16,637	$ 16,363	$ 42,911	$ 33,000	$ 68,292	$ 50,458	123,554	$ 96,872	$ 69,134
Service \| Calculated under Revenue Guidance in Effect before Topic 606
STATEMENT OF OPERATIONS
License and transaction fees																	123,356
Service \| Adjustment \| ASC 606
STATEMENT OF OPERATIONS
License and transaction fees																	$ (198)

REVENUE - Performance Obligations (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Revenue from Contract with Customer [Abstract]
Performance obligation	$ 38,939
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01
Revenue from Contract with Customer [Abstract]
Performance obligation	$ 12,093
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01
Revenue from Contract with Customer [Abstract]
Performance obligation	$ 10,271
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01
Revenue from Contract with Customer [Abstract]
Performance obligation	$ 8,643
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01
Revenue from Contract with Customer [Abstract]
Performance obligation	$ 5,990
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Revenue from Contract with Customer [Abstract]
Performance obligation	$ 1,942
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, period

REVENUE - Contract Liability (Details) $ in Thousands	12 Months Ended
REVENUE - Contract Liability (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Increase (Decrease) In Contract with Customer, Liability [Roll Forward]
Deferred revenue, beginning of the period	$ 511
Deferred revenue, end of the period	1,539
Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period	320
Calculated under Revenue Guidance in Effect before Topic 606
Increase (Decrease) In Contract with Customer, Liability [Roll Forward]
Deferred revenue, beginning of the period	511
Deferred revenue, end of the period	610
Adjustment \| ASC 606
Increase (Decrease) In Contract with Customer, Liability [Roll Forward]
Deferred revenue, end of the period	$ (929)

REVENUE - Additional Information (Details) $ in Millions	12 Months Ended
REVENUE - Additional Information (Details) $ in Millions	Jun. 30, 2019 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Description of timing	The majority of contracts are considered to have a contractual term of between 36 and 60 months based on implied and explicit termination penalties.
Amortization of capitalized contract costs	$ 0.3
Prepaid Expenses and Other Current Assets
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Capitalized costs to obtain contracts	0.3
Noncurrent Assets
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Capitalized costs to obtain contracts	$ 1.5

RESTRUCTURING/INTEGRATIONS COSTS - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Restructuring and Related Activities [Abstract]
Workforce reduction costs	$ 266	$ 2,122

RESTRUCTURING/INTEGRATION COSTS - Schedule of Workforce Reduction Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance	$ 1,020	$ 0
Plus: additions	266	2,122
Less: cash payments	(1,111)	(1,102)
Restructuring reserve, ending balance	$ 175	$ 1,020

LOSS PER SHARE CALCULATION - Calculation of Earning Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended												6 Months Ended		9 Months Ended		12 Months Ended			36 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2017	Dec. 31, 2016	Mar. 31, 2018	Mar. 31, 2017	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2019
Numerator for basic and diluted loss per share
Net loss	$ (10,541)	$ (4,510)	$ (10,657)	$ (6,320)	$ (1,696)	$ (3,223)	$ (4,194)	$ (2,171)	$ (2,938)	$ (925)	$ (232)	$ (3,370)	$ (6,365)	$ (3,602)	$ (9,588)	$ (4,527)	$ (32,028)	$ (11,284)	$ (7,465)	$ (50,800)
Preferred dividends	0	(334)	0	(334)	0	(334)	0	(334)	0	(334)	0	(334)	(334)	(334)	(668)	(668)	(668)	(668)	(668)
Net loss applicable to common shares	$ (10,541)	$ (4,844)	$ (10,657)	$ (6,654)	$ (1,696)	$ (3,557)	$ (4,194)	$ (2,505)	$ (2,938)	$ (1,259)	$ (232)	$ (3,704)	$ (6,699)	$ (3,936)	$ (10,256)	$ (5,195)	$ (32,696)	$ (11,952)	$ (8,133)
Denominator for basic loss per share - weighted average shares outstanding (in shares)	60,065,978	60,065,053	60,059,936	60,053,912	54,064,750	53,637,085	52,150,106	47,573,364	40,331,993	40,327,697	40,308,934	38,488,005	49,861,735	39,398,469	51,101,813	39,703,690	60,061,243	51,840,518	39,860,335
Effect of dilutive potential common shares (in shares)																	0	0	0
Denominator for diluted loss per share (in shares)	60,065,978	60,065,053	60,059,936	60,053,912	54,064,750	53,637,085	52,150,106	47,573,364	40,331,993	40,327,697	40,308,934	38,488,005	49,861,735	39,398,469	51,101,813	39,703,690	60,061,243	51,840,518	39,860,335
Basic loss per share (in USD per share)	$ (0.18)	$ (0.08)	$ (0.18)	$ (0.11)	$ (0.03)	$ (0.07)	$ (0.08)	$ (0.05)	$ (0.07)	$ (0.03)	$ (0.01)	$ (0.10)	$ (0.13)	$ (0.10)	$ (0.20)	$ (0.13)	$ (0.54)	$ (0.23)	$ (0.20)
Diluted loss per share (in USD per share)	$ (0.18)	$ (0.08)	$ (0.18)	$ (0.11)	$ (0.03)	$ (0.07)	$ (0.08)	$ (0.05)	$ (0.07)	$ (0.03)	$ (0.01)	$ (0.10)	$ (0.13)	$ (0.10)	$ (0.20)	$ (0.13)	$ (0.54)	$ (0.23)	$ (0.20)

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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+ Details

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=116637232&loc=SL114874131-224263

+ Details

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

+ References + Details

LOSS PER SHARE CALCULATION - Additional Information (Details) - shares	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Earnings Per Share [Abstract]
Antidilutive shares excluded from the calculation of diluted loss per shares (in shares)	1,297,073	1,134,845	1,138,108

FINANCE RECEIVABLES - Information Regarding Finance Receivables (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016
Receivables [Abstract]
Finance receivables, net	$ 6,260	$ 4,603	$ 2,234	$ 3,296	$ 1,441	$ 9,743	$ 2,149	$ 1,442	$ 3,349
Finance receivables due after one year, net	11,596	13,246	$ 9,870	$ 11,728	$ 7,742	$ 8,607	$ 7,548	$ 3,956	$ 3,962
Total finance receivables	17,856	17,849
Finance receivables, allowance	$ 606	$ 12

FINANCE RECEIVABLES - Credit Risk Profile Based on Payment Activity (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
Financing Receivable, Credit Quality Indicator [Line Items]
Total finance receivables	$ 18,462	$ 17,861
Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Total finance receivables	17,856	17,849
Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
Total finance receivables	$ 606	$ 12

FINANCE RECEIVABLES - Age Analysis of Past Due Finance Receivables (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
Financing Receivable, Past Due [Line Items]
Current	$ 17,506	$ 17,609
Total finance receivables	17,856	17,849
Financing Receivable, before Allowance for Credit Loss	18,462	17,861
30 days and under past due
Financing Receivable, Past Due [Line Items]
Past due	200	56
31 - 60 days past due
Financing Receivable, Past Due [Line Items]
Past due	43	7
61 - 90 days past due
Financing Receivable, Past Due [Line Items]
Past due	145	56
Greater than 90 days past due
Financing Receivable, Past Due [Line Items]
Past due	$ 568	$ 133

FINANCE RECEIVABLES - Summary of Finance receivables Fiscal Years (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
Receivables [Abstract]
2020	$ 6,584
2021	4,041
2022	3,833
2023	2,635
2024	1,133
Thereafter	236
Total finance receivables	$ 18,462	$ 17,861

FINANCE RECEIVABLES - Sale of Finance Receivables (Details) - USD ($) $ in Thousands	1 Months Ended	6 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2017	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Receivables [Abstract]
Cash proceeds from sale of finance receivables					$ 2,300
Proceeds from collateralized borrowing from the transfer of finance receivables	$ 1,100	$ 1,075	$ 1,075	$ 0	$ 1,075	$ 0

PROPERTY AND EQUIPMENT, NET - Summary of Property And Equipment at Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016
Property, Plant and Equipment [Line Items]
Property and equipment, cost	$ 47,985	$ 45,561
Accumulated depreciation	(38,805)	(34,288)
Property and equipment, net	9,180	11,273	$ 12,243	$ 12,443	$ 10,701	$ 11,111	$ 11,341	$ 11,994	$ 12,436
Computer equipment and purchased software
Property, Plant and Equipment [Line Items]
Property and equipment, cost	6,745	7,367
Accumulated depreciation	(5,840)	(5,353)
Property and equipment, net	905	2,014
Internal-use software
Property, Plant and Equipment [Line Items]
Property and equipment, cost	3,126	2,657
Accumulated depreciation	(716)	(492)
Property and equipment, net	$ 2,410	$ 2,165
Property and equipment used for rental program
Property, Plant and Equipment [Line Items]
Usseful life	5 years	5 years
Property and equipment, cost	$ 36,285	$ 33,941
Accumulated depreciation	(30,978)	(27,420)
Property and equipment, net	5,307	6,521
Furniture and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, cost	1,543	1,327
Accumulated depreciation	(1,116)	(899)
Property and equipment, net	427	428
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, cost	286	269
Accumulated depreciation	(155)	(124)
Property and equipment, net	$ 131	$ 145
Minimum \| Computer equipment and purchased software
Property, Plant and Equipment [Line Items]
Usseful life	3 years	3 years
Minimum \| Internal-use software
Property, Plant and Equipment [Line Items]
Usseful life	3 years	3 years
Minimum \| Furniture and equipment
Property, Plant and Equipment [Line Items]
Usseful life	3 years	3 years
Maximum \| Computer equipment and purchased software
Property, Plant and Equipment [Line Items]
Usseful life	7 years	7 years
Maximum \| Internal-use software
Property, Plant and Equipment [Line Items]
Usseful life	5 years	5 years
Maximum \| Furniture and equipment
Property, Plant and Equipment [Line Items]
Usseful life	7 years	7 years

PROPERTY AND EQUIPMENT, NET - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 4.9	$ 5.7	$ 5.7
Assets under capital leases, gross	2.4	3.1
Assets under capital leases, accumulated depreciation	2.4	2.7
Capital lease amortization included in depreciation expense	0.1	0.4	0.4
Property and equipment used for rental program
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 3.6	$ 4.6	$ 4.9

GOODWILL AND INTANGIBLE ASSETS - Summary of Amortizable Intangible Asset (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016
Finite-Lived Intangible Assets [Line Items]
Amortizable intangible assets, Gross	$ 31,685	$ 31,685
Amortizable intangible assets, Accumulated Amortization	(5,514)	(2,360)
Amortizable intangible assets, Net	26,171	29,325
Goodwill, Gross	64,149	64,149
Goodwill, Net	64,149	64,149	$ 64,149	$ 64,403	$ 11,492	$ 11,492	$ 11,492	$ 11,492	$ 11,703
Total intangible assets and goodwill, Gross	95,834	95,834
Total intangible assets and goodwill, Net	90,320	93,474
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Amortizable intangible assets, Gross	2	2
Amortizable intangible assets, Accumulated Amortization	(2)	(2)
Amortizable intangible assets, Net	$ 0	$ 0
Amortizable intangible assets, Amortization Period	2 years	2 years
Brand and tradenames
Finite-Lived Intangible Assets [Line Items]
Amortizable intangible assets, Gross	$ 1,695	$ 1,695
Amortizable intangible assets, Accumulated Amortization	(470)	(226)
Amortizable intangible assets, Net	1,225	1,469
Developed technology
Finite-Lived Intangible Assets [Line Items]
Amortizable intangible assets, Gross	10,939	10,939
Amortizable intangible assets, Accumulated Amortization	(3,266)	(1,421)
Amortizable intangible assets, Net	7,673	9,518
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Amortizable intangible assets, Gross	19,049	19,049
Amortizable intangible assets, Accumulated Amortization	(1,776)	(711)
Amortizable intangible assets, Net	$ 17,273	$ 18,338
Minimum \| Brand and tradenames
Finite-Lived Intangible Assets [Line Items]
Amortizable intangible assets, Amortization Period	3 years	3 years
Minimum \| Developed technology
Finite-Lived Intangible Assets [Line Items]
Amortizable intangible assets, Amortization Period	5 years	5 years
Minimum \| Customer relationships
Finite-Lived Intangible Assets [Line Items]
Amortizable intangible assets, Amortization Period	10 years	10 years
Maximum \| Brand and tradenames
Finite-Lived Intangible Assets [Line Items]
Amortizable intangible assets, Amortization Period	7 years	7 years
Maximum \| Developed technology
Finite-Lived Intangible Assets [Line Items]
Amortizable intangible assets, Amortization Period	6 years	6 years
Maximum \| Customer relationships
Finite-Lived Intangible Assets [Line Items]
Amortizable intangible assets, Amortization Period	18 years	18 years

GOODWILL AND INTANGIBLE ASSETS - Additional Information (Details) - USD ($) $ in Thousands		12 Months Ended
	Nov. 09, 2017	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Finite-Lived Intangible Assets [Line Items]
Amortization expense of acquired intangible assets		$ 3,200	$ 2,100	$ 200
Weighted average useful life		12 years 3 months 1 day
Cantaloupe
Finite-Lived Intangible Assets [Line Items]
Goodwill acquired			52,700
Post-closing adjustment for working capital	$ 253		300
Intangible assets acquired			$ 30,800
Weighted average useful life		13 years
Brand and tradenames
Finite-Lived Intangible Assets [Line Items]
Weighted average useful life		5 years 3 months 1 day
Developed technology
Finite-Lived Intangible Assets [Line Items]
Weighted average useful life		4 years 3 months 1 day
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted average useful life		16 years 3 months 1 day

GOODWILL AND INTANGIBLE ASSETS - Summary of Estimated Annual Amortization Expense For Amortizable Intangible Asset (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
2020	$ 3,138
2021	3,074
2022	3,010
2023	3,010
2024	1,909
Thereafter	12,030
Amortizable intangible assets, Net	$ 26,171	$ 29,325

ACCRUED EXPENSES - Information Regarding Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016
Accrued Liabilities [Abstract]
Accrued sales tax	$ 16,559	$ 12,686
Accrued compensation and related sales commissions	2,071	3,100
Accrued professional fees	2,847	936
Accrued taxes and filing fees	209	160
Accrued other	1,672	2,475
Total accrued expenses	23,358	19,357
Less: accrued expenses, current	(23,258)	(19,291)	$ (18,508)	$ (16,623)	$ (12,217)	$ (11,873)	$ (8,792)	$ (7,541)	$ (8,135)
Accrued expenses, noncurrent	$ 100	$ 66	$ 66	$ 65	$ 62	$ 53	$ 52	$ 52	$ 11

DEBT AND OTHER FINANCING ARRANGEMENTS - Debt and Other Financing Agreements (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016
Debt Instrument [Line Items]
Revolving Credit Facility	$ 10,000	$ 10,000
Other, including capital lease obligations	1,323	2,689
Less: unamortized issuance costs	(8)	(256)
Total	12,773	35,766
Less: debt and other financing arrangements, current	(12,497)	(34,639)	$ (4,470)	$ (5,488)	$ (2,628)	$ (3,198)	$ (3,785)	$ (4,331)	$ (4,952)
Debt and other financing arrangements, noncurrent	276	1,127	$ 22,895	$ 24,570	$ 1,049	$ 1,061	$ 1,239	$ 1,394	$ 1,517
Term Loan
Debt Instrument [Line Items]
Term Loan	$ 1,458	$ 23,333