10-K

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE FISCAL YEAR ENDED JUNE 30, 2019

or

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Concierge Technologies, Inc.

(Exact name of registrant as specified in its charter)

Nevada (state of incorporation) 000-29913 (Commission File Number) 90-1133909 (IRS Employer I.D. Number)

1202 Puerta Del Sol

San Clemente, CA 92673

Tel: 866.800.2978

Fax: 888.312.0124

____________________________________________________

(Address and telephone number of registrant's principal

executive offices and principal place of business)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None.

Securities registered under Section 12(g) of the Exchange Act:

Common Stock, $0.001 par value

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [ ] No [X]

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes [ ] No [X]

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes [X] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☐    (Do not check if a smaller reporting company)
		Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐   Yes     ☒   No

The aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant was $8,386,366 based upon the per share price of $1.39, as reported by our trading exchange platform, OTC Markets, for the common stock as of December 31, 2018, the last business day of the registrant’s most recently completed second fiscal quarter, multiplied by the approximate number of shares of common stock held by persons other than executive officers, directors and five percent stockholders of the registrant without conceding that any such person is an “affiliate” of the registrant for purposes of the federal securities laws.

As of September 27, 2019, there were 37,412,519 shares of the registrant's Common Stock, $0.001 par value, issued and outstanding.  In addition, we have 53,032 shares of Series B Convertible, Voting, Preferred Stock issued and outstanding on September 27, 2019. Series B Preferred stock is convertible, under certain conditions, to 20 shares of common stock for each share of Series B Preferred stock. Each share of Series B Preferred stock votes as 20 shares of common stock.

DOCUMENTS INCORPORATED BY REFERENCE

None

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TABLE OF CONTENTS

PART I
ITEM 1  Business	4
ITEM 1A Risk Factors	10
ITEM 1B Unresolved Staff Comments	12
ITEM 2  Properties	12
ITEM 3  Legal Proceedings	12
ITEM 4  Mine Safety Disclosures	12
PART II
ITEM 5  Market for Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities	13
ITEM 6 Selected Financial Data	15
ITEM 7  Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
ITEM 7A Quantitative and Qualitative Disclosures About Market Risk	22
ITEM 8  Financial Statements and Supplementary Data	22
ITEM 9  Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	23
ITEM 9A Controls and Procedures	23
ITEM 9B Other Information	23
PART III
ITEM 10 Directors, Executive Officers, and Corporate Governance	24
ITEM 11 Executive Compensation	28
ITEM 12 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	29
ITEM 13 Certain Relationships and Related Transactions, and Director Independence	30
ITEM 14 Principal Accounting Fees and Services	31
PART IV
ITEM 15 Exhibits, Financial Statement Schedules	32
ITEM 16 Form 10-K Summary	33

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 SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Annual Report on Form 10-K contains forward-looking statements within the meaning of the federal securities laws, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “would,” “shall,” “might,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential,” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Forward-looking statements contained in this Annual Report on Form 10-K include, but are not limited to, statements about:

• our future financial performance, including our revenue, cost of revenue, gross profit, gross margin, operating expenses, ability to generate positive cash flow, and ability to achieve and maintain profitability;

• the sufficiency of our cash and cash equivalents to meet our working capital, capital expenditure, and liquidity needs;

• our operating subsidiaries' ability to attract and retain customers to use our products, to optimize the pricing for our products, to expand our sales to our customers, and to convince our existing customers to renew subscriptions;

• the evolution of technologies affecting our operating subsidiaries' products and markets;

• our operating subsidiaries' ability to innovate and provide a superior user experience and our intentions and strategy with respect thereto;

• our operating subsidiaries' ability to successfully penetrate enterprise markets;

• our operating subsidiaries' ability to successfully expand in our existing markets and into new markets, including international markets;

• the attraction and retention of key personnel;

• our ability to effectively manage our growth and future expenses;

• worldwide economic conditions and their impact on spending; and

• and our operating subsidiaries' ability to comply with modified or new laws and regulations applying to our business, including privacy and data security regulations.

We caution you that the foregoing list does not contain all of the forward-looking statements made with respect to us and our operating subsidiaries in this Annual Report on Form 10-K.

You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Annual Report on Form 10-K primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, operating results, and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors described in the section titled “Risk Factors”. Moreover, we and our subsidiaries operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Annual Report on Form 10-K. We cannot assure you that the results, events, and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events, or circumstances could differ materially from those described in the forward-looking statements.

The forward-looking statements made in this Annual Report on Form 10-K relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Annual Report on Form 10-K to reflect events or circumstances after the date of this Annual Report on Form 10-K or to reflect new information or the occurrence of unanticipated events, except as required by law. We and our subsidiaries may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments we may make.

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PART I

ITEM 1.            BUSINESS.

General

Concierge Technologies, Inc., (the “Company” or “Concierge”), a Nevada corporation, which was incorporated on April 20, 2005, operates through its wholly owned subsidiaries who are engaged in varied business activities. The operations of the Company’s wholly-owned subsidiaries are more particularly described herein but are summarized as follows:

● Wainwright Holdings, Inc. (“Wainwright”), a U.S. based company, is the sole member of two investment services limited liability company subsidiaries, United States Commodity Funds LLC (“USCF”), and USCF Advisers LLC (“USCF Advisers”), each of which manages, operates or is an investment advisor to exchange traded funds and exchange traded products organized as limited partnerships or investment trusts that issue shares which trade on the NYSE Arca stock exchange.

● Gourmet Foods, Ltd. (“Gourmet Foods”), a New Zealand based company, manufactures and distributes New Zealand meat pies on a commercial scale.

● Brigadier Security Systems (2000) Ltd. (“Brigadier”), a Canadian based company, sells and installs commercial and residential alarm monitoring systems.

● Kahnalytics, Inc. dba/Original Sprout (“Original Sprout”), a U.S. based company, is engaged in the wholesale distribution of hair and skin care products under the brand name Original Sprout on a global scale. The former business of Kahnalytics, providing live-streaming mobile video on a subscription basis, was insignificant and was terminated after transitioning to the current business of distributing hair and skin care products in December 2017.

See “Note 12. Business Combinations” to our audited financial statements included elsewhere in this annual report for a description of the terms of our acquisitions for our operating businesses.

Concierge manages its operating businesses on a decentralized basis. There are no centralized or integrated operational functions such as marketing, sales, legal or other professional services and there is little involvement by Concierge’s management in the day-to-day business affairs of its operating subsidiary businesses. Concierge’s corporate management is responsible for capital allocation decisions, investment activities and selection and retention of the Chief Executive to head each of the operating subsidiaries. Concierge's corporate management is also responsible for corporate governance practices, monitoring regulatory affairs, including those of its operating businesses and involvement in governance-related issues of its subsidiaries as needed.  Across Concierge and its subsidiaries, the Company employs 90 full-time employees.

Subsidiary Business Overview

Wainwright

On December 9, 2016, Concierge acquired all of the issued and outstanding stock in Wainwright which is controlled by our CEO and majority shareholder Nicholas Gerber and another Concierge shareholder, Scott Schoenberger, a member of our board of directors. Wainwright operates through USCF and USCF Advisers, which collectively operate 13 exchange traded products (“ETPs”) and exchange traded funds (“ETFs”) listed on the NYSE Arca, Inc. ("NYSE Arca") with a total of approximately $2.4 billion in assets under management as of June 30, 2019. Wainwright earns revenues through its subsidiaries' contractual agreements providing investment management and advisory services in exchange for management fees charged against the funds. Wainwright’s operating subsidiaries focus primarily on providing investment advisory services to funds that invest in a broad base or single commodity, particularly in oil, natural gas, gasoline and metals. Concierge acquired Wainwright in a stock-for-stock exchange for (i) 27,293,333 (as adjusted approximately for the 1 for 30 reverse stock split of our outstanding shares of common and preferred stock effective on December 15, 2017, (the "2017 Reverse Stock Split")) shares of our common stock and (ii) 311,804 (as adjusted approximately for the 2017 Reverse Stock Split) shares of our Series B Voting, Convertible, Preferred stock (which preferred shares are convertible into approximately 6,236,079 shares of Company Common Stock). (See Note 13 to our Financial Statements)

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Services and Customers

USCF is currently the General Partner in the following Securities Act of 1933 LP commodity based index funds and Sponsor (“Sponsor”) for the fund series within the United States Commodity Index Funds Trust (“USCIF Trust”) and the USCF Funds Trust (“USCF Funds Trust”):

USCF as General Partner for the following funds:
United States Oil Fund, LP (“USO”)	Organized as a Delaware limited partnership in May 2005
United States Natural Gas Fund, LP (“UNG”)	Organized as a Delaware limited partnership in November 2006
United States Gasoline Fund, LP (“UGA”)	Organized as a Delaware limited partnership in April 2007
United States Diesel Heating Oil Fund, LP (“UHN”)	Organized as a Delaware limited partnership in April 2007; Liquidated September 12, 2018
United States 12 Month Oil Fund, LP (“USL”)	Organized as a Delaware limited partnership in June 2007
United States 12 Month Natural Gas Fund, LP (“UNL”)	Organized as a Delaware limited partnership in June 2007
United States Short Oil Fund, LP (“DNO”)	Organized as a Delaware limited partnership in June 2008; Liquidated September 12, 2018
United States Brent Oil Fund, LP (“BNO”)	Organized as a Delaware limited partnership in September 2009
USCF as fund Sponsor - each a series within the USCIF Trust
United States Commodity Index Funds Trust (“USCIF Trust”)	A series trust formed in Delaware December 2009
United States Commodity Index Fund (“USCI”)	A commodity pool formed in April 2010 and made public August 2010
United States Copper Index Fund (“CPER”)	A commodity pool formed in November 2010 and made public November 2011
United States Agriculture Index Fund (“USAG”)	A commodity pool formed in November 2010 and made public April 2012; Liquidated September 12, 2018
USCF as fund Sponsor - each a series within the USCF Funds Trust
USCF Funds Trust (“USCF Funds Trust”)	A series trust formed in Delaware March 2016
United States 3X Oil Fund (“USOU”)	A commodity pool formed in May 2017 and made public July 2017
United States 3X Short Oil Fund (“USOD”)	A commodity pool formed in May 2017 and made public July 2017

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USCF Advisers serves as the investment adviser to the funds listed below within the Trusts and has overall responsibility for the general management and administration for the Trusts. Pursuant to the current Investment Advisory Agreements, USCF Advisers provides an investment program for the Trusts’ funds and manages the investment of the assets.

Advisers as fund manager for each series within the USCF ETF Trust and the USCF Mutual Funds Trust:
USCF ETF Trust (“ETF Trust”)	Organized as a Delaware statutory trust in November 2013
USCF SummerHaven SHPEI Index Fund ("BUY")	Fund launched November 30, 2017
USCF SummerHaven SHPEN Index Fund ("BUYN")	Fund launched November 30, 2017
Stock Split Index Fund (“TOFR”)	Fund launched September 2014; Liquidated October 20, 2017
Restaurant Leaders Index Fund (“MENU”)	Fund launched November 2016; Liquidated October 20, 2017
USCF SummerHaven Dynamic Commodity Strategy No K-1 Fund	Fund launched May 2018
USCF Mutual Funds Trust ("Mutual Funds Trust")	Organized as a Delaware statutory trust in July 2016
USCF Commodity Strategy Fund ("USCFX" and "USCIX")	Fund launched March 2017; Liquidated March 21, 2019

All USCF funds and the Trusts' funds are collectively referred to as the “Funds” hereafter.

As of and for the years ended June 30, 2019 and 2018 approximately 89% of Wainwright’s revenue and accounts receivable were attributed to its three largest funds United States Oil Fund, LP, United States Natural Gas Fund, LP and United States Commodity Index Fund.

Competition

Wainwright faces competition from other commodity fund managers, which include larger, better financed companies that offer products similar to Wainwright’s. Many of these competitors have substantially greater financial, technical, and human resources than Wainwright does, as well as greater experience in the discovery and development of products and the commercialization of those products. Our competitors’ products may be more effective, or more effectively marketed and sold, than any products we may commercialize. Wainwright will continue to develop and consider new fund opportunities identified through its research efforts and review of market needs. However, the cost of launching and seeding new funds is dependent upon existing and new capital resources. The ability to successfully launch new funds competing with much larger financial institutions with greater financial and human capital will be challenging.

Regulation

Wainwright’s operating subsidiaries, USCF and USCF Advisers, are subject to federal, state and local laws and regulations generally applicable to the investment services industry. USCF is a commodity pool operator (“CPO”) subject to regulation by the Commodity Futures Trading Commission (the "CFTC") and the National Futures Association (the “NFA”) under the Commodities Exchange Act (“CEA”). USCF Advisers is an investment adviser registered under the Investment Advisers Act of 1940, as amended and has registered as a CPO under the CEA. ETPs issued or sponsored by USCF are required to be registered with the Securities and Exchange Commission (the “SEC”) in accordance with the Securities Act of 1933. USCF Advisers advises exchange traded funds and a mutual fund (liquidated during the current fiscal year) registered with the SEC under the Investment Company Act of 1940.

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Employees

Wainwright’s operating subsidiaries employ approximately 15 persons, a majority of whom are located in Walnut Creek, California. The operating subsidiaries are responsible for the retention of sub-advisers to manage the investments of each managed Funds’ assets in conformity with their respective investment policies if the operating subsidiary does not provide those services directly. Wainwright’s operating subsidiaries may also retain third-parties to provide custody, distribution, fund administration, transfer agency, and all other non-distribution related services necessary for each fund to operate. Wainwright, through its operating subsidiaries, bears all of its own costs associated with providing these advisory services and the expenses of the members of the board of directors of each fund who are affiliated with Wainwright.

Intellectual Property

Wainwright subsidiary USCF owns registered trademarks for USCF and USCF Advisers.  The funds USCF is a general partner or sponsor of each have registered trademarks owned by USCF. Additionally, USCF was granted two patents Nos. 7,739,186 and 8,019,675, for systems and methods for an exchange traded fund (ETF) that tracks the price of one or more commodities.

Gourmet Foods

Gourmet Foods, Ltd. (“Gourmet Foods”), was organized in its current form in 2005 (previously known as Pats Pantry Ltd) and acquired by Concierge in August 2015. Pats Pantry was founded in 1966 to produce and sell wholesale bakery products, meat pies and patisserie cakes and slices, in New Zealand. Gourmet Foods, located in Tauranga, New Zealand, sells substantially all of its goods to supermarkets and service station chains with stores located throughout New Zealand. Gourmet Foods also has a large number of smaller independent lunch bars, cafes and corner dairies among the customer list, however they comprise a relatively insignificant dollar volume in comparison to the primary accounts of large distributors and retailers.

Products and Customers

Concierge, through Gourmet Foods, has three major customer groups comprising the gross revenues to Gourmet Foods; 1) grocery, 2) gasoline convenience stores, and 3) independent retailers. The grocery and food industry is dominated by several large chain operations, which are customers of Gourmet Foods, and there are no long term guarantees that these major customers will continue to purchase products from Gourmet Foods, however the relationships have been in place for sufficient time to give management reasonable confidence in their continuing business.

For the year ended and balance sheet date of June 30, 2019, Gourmet Foods’ largest customer in the grocery industry, who operates through a number of independently branded stores, accounted for approximately 22% of Gourmet Foods sales revenues and 28% of Gourmet Foods accounts receivable as compared to 21% and 33% for the prior year ended June 30, 2018, respectively. The second largest in the grocery industry accounted for approximately 12% of Gourmet Foods sales revenues for the year ended June 30, 2019 as compared to 12% for the year ended June 30, 2018. This same group accounted for 19% of Gourmet Foods accounts receivable as of June 30, 2019 as compared to 16% as of June 30, 2018. In the gasoline convenience store market Gourmet Foods supplies two major channels. The largest is a marketing consortium of gasoline dealers operating under the same brand who, for the year ended and balance sheet date of June 30, 2019, accounted for approximately 43% of Gourmet Foods’ gross sales revenues as compared to 41% for the year ended June 30, 2018. No single member of the consortium is responsible for a significant portion of Gourmet Foods’ accounts receivable. The third category of independent retailers and cafes accounted for the remaining balance of Gourmet Foods’ gross sales revenue, however the group members are independently owned and individually responsible for their financial obligations with no one customer accounting for a significant portion of revenues or accounts receivable.

Sources and Availability of Materials

Gourmet Foods is not dependent upon any one major supplier as many alternative sources are available in the local market place should the need arise. However, the unavailability of, or increase in price in, any of the ingredients on which Gourmet Foods relies to produce its products could harm its operating results for such period.

Competition

Gourmet Foods faces competition from other commercial-scale manufacturers of meat pies located in New Zealand and Australia. Competitors’ products may be more effective, or more effectively marketed and sold, than any products Gourmet Foods may commercialize. Larger competitors in New Zealand also enjoy a wider and more entrenched market share making it particularly difficult for us to penetrate certain market segments and, even if penetrated, might make it difficult to maintain. In an effort to expand its market presence and limit competitive interference, Gourmet Foods from time to time attempts to acquire other commercial-scale manufacturers of meat pies or confections. A recent attempt at such an acquisition was made during the current fiscal year, however failed subsequent to June 30, 2019 due to unsatisfactory results of due diligence discovery. (See Note 17 to the Consolidated Financial Statements)

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Seasonality

The location of Gourmet Foods in the southern hemisphere provides them with a warm Christmas holiday season and some increased business as customers tend to be traveling and purchase more ready-to-eat foods. Although this increase in sales is observable, it is not deemed significant and the opposing seasons to the northern hemisphere work to offset any corresponding down turn in revenues for Brigadier, our Canadian subsidiary, during winter months. Overall, the consolidated business does not experience any material seasonality due to Gourmet Foods.

Regulation

In New Zealand our subsidiary, Gourmet Foods, is required to have certain permits from health regulatory agencies and export permits for certain products it chooses to export. Gourmet Foods is also subject to local regulations as are usual and customary for those in the food processing, manufacturing and distribution business.

Intellectual Property

Gourmet Foods, Ponsonby Pies and Pat’s Pantry are all registered trademarks of Gourmet Foods, Ltd.

Employees

Gourmet Foods employs approximately 45 persons in New Zealand.

Brigadier

On June 2, 2016, Concierge acquired all of the issued and outstanding stock in Brigadier, a Canadian corporation headquartered in Saskatoon, Saskatchewan. Brigadier sells and installs alarm monitoring and security systems to commercial and residential customers under brand names "Brigadier Security Systems" and "Elite Security" throughout the province of Saskatchewan with offices in Saskatoon and Regina.

Services, Products and Customers

Brigadier Security Systems (2000) Ltd. (“Brigadier”) was founded in 1985 and through internal growth and acquisitions the core business of Brigadier began in 1998. Today Brigadier is one of the largest SecurTek security monitoring dealers in Saskatchewan with offices in both major urban areas of Regina (dba Elite Security Systems (2005) Ltd.) and Saskatoon. SecurTek is owned by SaskTel which is Saskatchewan's leading Information and Communications Technology (ICT) provider with over 1.4 million customer connections across Canada. Brigadier is also a Honeywell Certified Access Control Integrator, Kantech Corporate Certified Integrator and UTC Interlogix Authorized dealer and the largest independent security contractor in the province. Brigadier provides comprehensive security solutions including access control, camera systems, ULC certified fire alarm panels, and intrusion alarms to home and business owners as well as government offices, schools and public buildings. Brigadier typically sells hardware to customers and brokers a 24/7 monitoring of their premises. The contract for monitoring the premises is typically supported by SecurTek, who pays Brigadier a monthly maintenance and support fee for each contract remaining in effect.

Concierge, through Brigadier, is partially dependent upon its contractual relationship with the alarm monitoring company who provides monitoring services to Brigadier’s customers. In the event this contract is terminated, Brigadier would be compelled to find an alternate source of alarm monitoring, or establish such a facility itself. Management believes that the contractual relationship is sustainable, and has been for many years, with alternate solutions available should the need arise. Sales to the largest customer, which includes contracts and recurring monthly support fees, totaled 46% and 41% of the total Brigadier revenues for the years ended June 30, 2019 and June 30, 2018, respectively. The same customer accounted for approximately 37% of Brigadier's accounts receivable as of the balance sheet date of June 30, 2019 as compared to 35% as of June 30, 2018. Another large account, which has been a significant customer this fiscal year, contributed 12% of the total sales revenues for the year ended June 30, 2019 and nil for the year ended June 30, 2018. There were no accounts receivable from this customer as of the years ended June 30, 2019 or June 30, 2018.

Sources and Availability of Materials

Brigadier purchases alarm panels, digital and analog cameras, mounting hardware and accessory items needed to complete security installations from a variety of sources. The manufacture of electronic items such as those sought by Brigadier has expanded to a global scale thus providing Brigadier with a broad choice of suppliers. Brigadier bases its vendor selection on several criteria including: price, availability, shipping costs, quality, suitability for purpose and the technical support of the manufacturer.

Competition

Although it holds a dominant market position in the province of Saskatchewan, Brigadier faces competition from larger, better financed companies that offer similar products and services. In addition, it is possible that Brigadier may face increasing competition as disruptive technologies enter the market. However, with respect to the market share it currently enjoys, Brigadier expects that their core customers will remain loyal and that an opportunity exists to capitalize on the deployment of new technologies. Brigadier's management will continue efforts to capture additional customers through organic growth and a focus on quality.

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Seasonality

Brigadier, due to its location in the province of Saskatchewan, Canada, is far enough north that winter weather has a negative effect on its ability to complete some installations, particularly those involving new construction. For this reason, the period from November through March typically produces less revenue than comparison periods during other seasons of the year. Although this decrease in sales is observable, the downturn in sales revenues for the winter months at Brigadier are offset in large part by the increase in revenues for our subsidiary Gourmet Foods in the Southern Hemisphere. Overall, the consolidated business does not experience any material seasonality due to Brigadier Security Systems.

Employees

Brigadier employs approximately 21 persons in Canada.

Original Sprout

Kahnalytics was founded in 2015 and adopted the dba/Original Sprout in December 2017 (see Note 12 to the Consolidated Financial Statements). For the year ended June 30, 2017  (prior to the acquisition of the Original Sprout assets), Kahnalytics had incurred de minimis operating losses insignificant to the overall enterprise. Prior to the acquisition of the Original Sprout assets, and as of June 30, 2017, the residual business the company was founded to oversee was being wound down and management expected to transition focus to another industry. As of June 30, 2018, this legacy business had been completely wound down.  Accordingly, the results of operations for the twelve-month period ending June 30, 2018 reflects only two quarters of business operations with the newly acquired assets and should not be viewed as indicative of a full twelve-month period of operations. Similarly, there is no meaningful comparative data for the twelve-month period ending June 30, 2018 as the business included nominal subscription sales to a web hosted service and not the wholesale distribution of beauty products as it currently exists. 

Products and Customers

Original Sprout sells its products through 3 channels to market: 1) direct sales to end users via online shopping cart, 2) distributors who, in turn, sell to other retailers or wholesalers, and 3) to retail stores selling to end users.

For the year ended June 30, 2018, Original Sprout, which operated with its current product offering for only 194 days, is not indicative of historical or future operations. For the actual concentration of risk with respect to the current business, focus is given for the period from July 1, 2018 through June 30, 2019 and no comparison exists for the prior year period as only partial business in this sector was conducted by Original Sprout. Among thousands of customers, Original Sprout does have several major accounts with distributors however only one account represented 10% of our annual sales revenues. There were 3 major distributor accounts, all current, representing 25%, 17%, and 12% for a total of 54% of all accounts receivable as of June 30, 2019 as compared to 10%, 20% and 3%respectively as of June 30, 2018.

Sources and Availability of Materials

Concierge, through Original Sprout, is dependent upon its relationship with a product packaging company who, at the direction of Original Sprout, produces the products in accordance with proprietary formulas, packages them in appropriate containers, and delivers the finished goods to Original Sprout for distribution to its customers. All of Original Sprout’s products are currently produced by this packaging company, although if this relationship were to fail there are other similar packaging companies available to Original Sprout at competitive pricing. Because of the nature of the Original Sprout product ingredients, some of the ingredients may, at times, be difficult to source in timely fashion or at the expected price point. To safeguard against this possibility Original Sprout endeavors to maintain at least a 90-day supply of all products in stock. Estimating and maintaining a reserve stock account is not a guarantee that a shortage of ingredient supplies will not affect production such that Original Sprout will not exhaust its reserves or be unable to fulfill customer orders.

Competition

Original Sprout manufactures and distributes only 100% vegan, safe and non-toxic, hair and skin care products which we believe differentiate it significantly from other main-stream products. The use of organic and natural extracts is a growing trend in the U.S. and abroad, and other established brands are beginning to make products for this market. As more entrants to the high-end, vegan, hair care segment come into existence it is inevitable that some will be better financed and have more brand recognition and resources than those of Original Sprout. Original Sprout is focused on promoting its own brand name as a recognized pioneer in 100% vegan, safe, effective, hair care products through recruitment of addition distributors, nationwide retail stores, and increased social media presence with the expectation that establishing brand awareness will allow the continued growth of annual revenues and market share protection, though there can be no guarantees that such efforts will be sufficient to offset the effects of competition in the future.

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Seasonality

There is no significant seasonality for sales of products for Original Sprout, though sales will fluctuate around traditional holidays, and certain products, such as sun screen, will be lower in winter months than in summer months. Overall, the consolidated business does not experience any material seasonality due to Original Sprout.

Regulation

In the U.S. our subsidiary, Original Sprout, is not required to have permits for distribution of its products, however it chooses to gain recognition from certain testing laboratories and other quasi-regulatory agencies for compliance with accepted standards for hair and skin care ingredients and lack of toxic chemicals in their formulas and processes. For export, Original Sprout is often compelled to submit its products to foreign government agencies or certified laboratories for ingredient testing prior to being accepted for import as a “safe” product. The Original Sprout products comply with all applicable regulations, both domestic and foreign, in areas where they are sold or distributed.

Intellectual Property

The formulations and ingredient percentages of the many products of Original Sprout are considered its intellectual property, though many cannot be patented, they are maintained as confidential. The names "Original Sprout", "D’Organiques Original Sprout" are registered trademarks of Original Sprout.

Employees

Original Sprout employees 9 persons on a full time basis at its location in San Clemente, California.

Available Information

We maintain a website at www.conciergetechnology.net. We make available free of charge on or through our website our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), as soon as reasonably practicable after we electronically file or furnish such materials to the SEC. The information on our website is not incorporated by reference in this annual report on Form 10-K.  In addition, the U.S. Securities and Exchange Commission ("SEC") maintains an Internet site at www.sec.gov that contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC, from which investors can electronically access Concierge's SEC filings.

ITEM 1A.       RISK FACTORS  

Concierge and its subsidiaries (referred to herein as “we,” “us,” “our” or similar expressions) are subject to certain risks and uncertainties in its business operations which are described below. The risks and uncertainties described below are not the only risks we face. Additional risks and uncertainties that are presently unknown or are currently deemed immaterial may also impair our business operations. The following risk factors should be read in connection with the other information included in this annual report on Form 10-K, including Management’s Discussion and Analysis of Financial Condition and Results of Operations and our financial statements and the related notes.

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Risks Related to our Business and Structure

Concierge is a holding company and its only material assets are its cash in hand, equity interests in its operating subsidiaries and its other investments. As a result, Concierge’s principal source of cash flow is distributions from its subsidiaries and its subsidiaries may be limited by law and by contract in making distributions to Concierge.

As a holding company, Concierge's assets are its cash and cash equivalents, the equity interests in its subsidiaries and other investments.

The principal source of cash flow is distributions from our subsidiaries. Thus, our ability to finance future acquisitions or develop new projects is dependent on the ability of our subsidiaries to generate sufficient net income and cash flows to make upstream cash distributions to us. Our subsidiaries are separate legal entities, and although they may be wholly-owned or controlled by us, they have no obligation to make any funds available to us, whether in the form of loans, dividends, distributions or otherwise. The ability of our subsidiaries to distribute cash to us are and will remain subject to, among other things, restrictions that are contained in each subsidiaries’ financing agreements, availability of sufficient funds and applicable state laws and regulatory restrictions.

Claims of creditors of our subsidiaries generally will have priority as to the assets of such subsidiaries over our claims and claims of our creditors and stockholders. To the extent our cash flow is dependent on our subsidiaries ability to make distributions to us could materially limit our ability to grow, pursue business opportunities or make acquisitions that could be beneficial to our businesses.

We are dependent on certain key personnel, the loss of which may adversely affect our financial condition or results of operations.

Major capital allocation decisions and investment decisions are made by Chief Executive Officer and Chairman of the Board of Directors, Nicholas Gerber, with consultation from key personnel, from our management team and the executive management team from our subsidiaries. The executive management teams that lead the Company and our subsidiaries are also highly experienced and possess extensive skills in their industry. If Mr. Gerber were to become unavailable, there could be a material adverse impact on our operations. However, the Company’s Board of Directors have the power and authority to fill a vacancy left by Mr. Gerber. The ability to retain key personnel is important to our success and future growth. Competition for these professionals can be intense, and we may not be able to retain and motivate our existing officers and senior employees, and continue to compensate such individuals competitively. The unexpected loss of the services of one or more of these individuals could have a detrimental effect on our operations and negatively impact our financial condition or results of operations of our businesses, and could hinder the ability of our business and our subsidiaries to effectively compete in the various industries in which we operate.

We need qualified personnel to manage and operate our subsidiaries.

Our decentralized business model requires that we retain qualified and competent managers to continue day-to-day operations of our subsidiaries and continue business operations in a changing political, business or regulatory environment. Our subsidiaries require qualified and competent personnel to execute their business plans and continue servicing their clients, suppliers and other stakeholders. Our inability to attract and retain qualified personnel to operate our business subsidiaries could negatively impact our operating results and our overall financial condition that is important to our success and future growth.

Cyber Security Risks

The efficient operation of our businesses is dependent on computer hardware and software systems. Unauthorized computer infiltration, denial-of-service attacks, phishing efforts, unauthorized access, malicious software codes, computer viruses or other such harmful computer campaigns may negatively impact our business causing significant disruptions to our business operations. We expect that we may be subject to a cyber-attack in some form or fashion in the future as such attacks become more sophisticated and frequent to all industries and all businesses of every size. There can be no assurance that our cyber-security measures and technology will adequately protect us from these and other risks, including external risks such as natural disasters and power outages and internal risks such as insecure coding and human error.

Although we have undertaken steps to prevent and mitigate cyber risks, there is no guarantee that our efforts will prevent cyber-attacks perpetrated against our information systems which could result in loss of assets and critical information, theft of intellectual property or inappropriate disclosure of confidential information and could expose us to remediation costs and reputational damage which could adversely affect our business in ways that cannot be predicted at this time. Any of these risks could materially affect our results of operations and consolidated financial results.

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Future acquisitions or business opportunities could involve unknown risks that could harm our business and adversely affect our financial condition and results of operations.

We are a holding company that owns interests in a number of different businesses. We have in the past, and intend in the future, to acquire businesses that involve unknown risks, some of which will be particular to the industry in which the investment or acquisition targets operate, including risks in industries with which we are not familiar or experienced. There can be no assurance our due diligence investigations will identify every matter that could have a material adverse effect on us or the entities that we may acquire. We may be unable to adequately address the financial, legal and operational risks raised by such investments or acquisitions, especially if we are unfamiliar with the relevant industry, which can lead to significant losses on material investments. The realization of any unknown risks could expose us to unanticipated costs and liabilities and prevent or limit us from realizing the projected benefits of the investments or acquisitions, which could adversely affect our financial condition and liquidity. In addition, our financial condition, results of operations and the ability to service our debt may be adversely impacted depending on the specific risks applicable to any business we invest in or acquire and our ability to address those risks.

We could consume resources in researching acquisitions, business opportunities or financings and capital market transactions that are not consummated, which could materially adversely affect subsequent attempts to locate and acquire or invest in another business.

We are a holding company in the business of owning diverse and profitable businesses. Our business model also encompasses researching and investigating new acquisitions and business opportunities to support the growth of our Company. With each new contemplated acquisition or business opportunity, there are resources that must be allocated towards acquisition or engaging in a new business opportunity such as, the negotiation, drafting and execution of relevant agreements, disclosure documents and other instruments with respect to such transaction and may require substantial management time and attention and substantial costs for financial advisors, accountants, attorneys and other advisors. If a decision is made not to consummate a specific acquisition, business opportunity or financing and capital market transaction, the costs incurred up to that point for the proposed transaction likely would not be recoverable. Furthermore, even if an agreement is reached relating to a specific acquisition, investment target or financing, we may fail to consummate the investment or acquisition for any number of reasons, including those beyond our control. Any such event could consume significant management time and result in a loss to us of the related costs incurred, which could adversely affect our financial position and our ability to consummate other acquisitions and investments.

ITEM 1B.       UNRESOLVED STAFF COMMENTS

Not applicable.

ITEM 2.          PROPERTIES

As of June 30, 2019 the Company did not own any plants or real property.  However, on July 2, 2019, Brigadier finalized the purchase of its office facility and land located in Saskatoon for CAN $750,000 (Approximately US$572,858), funded by a bank loan of CAN$525,000 (approximately US$401,000) and CAN$225,000 (approximately US$171,858) in cash. The bank loan matures in 5 years and bears interest at the annual rate of 4.14%. See Note 17-Subsequent Events.

Facilities

Administrative offices are co-located in the facility leased by our subsidiary, Original Sprout, whose mailing address is 1202 Puerta Del Sol, San Clemente, California 92673. Our wholly-owned subsidiary, Brigadier, rents facilities in Saskatoon and Regina, Canada. Our wholly-owned subsidiary, Gourmet Foods, rents facilities in Tauranga, New Zealand. Wainwright leases office space in Walnut Creek, California. We believe that the facilities described herein are adequate for our current and immediately foreseeable operating needs.

ITEM 3.          LEGAL PROCEEDINGS

From time to time, the Company is involved in legal proceedings arising mainly from the ordinary course of its business. Currently, there are no legal proceedings pending.

ITEM 4.         MINE SAFETY DISCLOSURES

Not applicable.

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PART II

ITEM 5.          MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES

Our Common Stock presently trades on the OTC Markets QB Exchange. The high and low bid prices, as reported by OTC Markets, are as follows for fiscal years ended June 30, 2018 and 2019. The quotations reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not represent actual transactions. The prices are adjusted for the 1:30 reverse stock split effectuated on December 15, 2017.

	High		Low
	Calendar 2017
3rd Quarter	$	1.79	$	1.17
4th Quarter	$	2.15	$	1.22
	Calendar 2018
1st Quarter	$	1.61	$	1.21
2nd Quarter	$	1.41	$	0.90
3rd Quarter	$	1.23	$	0.55
4th Quarter	$	1.85	$	0.86
	Calendar 2019
1st Quarter	$	1.40	$	0.80
2nd Quarter	$	1.30	$	0.65

Holders

On September 27, 2019, there were approximately 365 registered holders of record of our common stock.

Dividends

We have declared no dividends for the current year nor do we expect to in the foreseeable future. Our ability to pay dividends is subject to limitations imposed by Nevada law. Under Nevada law, dividends may be paid to the extent that a corporation’s assets exceed its liabilities and it is able to pay its debts as they become due in the usual course of business. Under Nevada law, a company - such as our company - can pay dividends only

• from retained earnings, and

• no distribution can be made, if after giving it effect,

• the corporation would not be able to pay its debts as they become due in the usual course of business; or

• except as otherwise specifically allowed by the articles of incorporation, the corporation’s total assets would be less than the sum of its total liabilities plus the amount that would be needed, if the corporation were to be dissolved at the time of distribution, to satisfy the preferential rights upon dissolution of stockholders whose preferential rights are superior to those receiving the distribution.

Our strategy on dividends is to declare and pay dividends only from retained earnings and only when our Board of Directors deems it prudent and in the best interests of the company to declare and pay dividends.

Penny Stock Regulations

Our common stock trades on the OTC Markets QB Exchange at a price less than $5 a share and therefore is subject to the rules governing "penny stocks."

A "penny stock" is any stock that:

• sells for less than $5 a share.

• is not listed on an exchange or authorized for quotation on The NASDAQ Stock Market, and

• is not a stock of a "substantial issuer." We currently have net tangible assets of at least $2 million which would qualify us as a “substantial issuer”.

There are statutes and regulations of the Commission that impose a strict regimen on brokers that recommend penny stocks.

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The Penny Stock Suitability Rule

Before a broker-dealer can recommend and sell a penny stock to a new customer who is not an institutional accredited investor, the broker-dealer must obtain from the customer information concerning the person's financial situation, investment experience and investment objectives. Then, the broker-dealer must "reasonably determine" (1) that transactions in penny stocks are suitable for the person and (2) that the person, or his advisor, is capable of evaluating the risks in penny stocks.

After making this determination, the broker-dealer must furnish the customer with a written statement setting forth the basis for this suitability determination. The customer must sign and date a copy of the written statement and return it to the broker-dealer.

Finally, the broker-dealer must also obtain from the customer a written agreement to purchase the penny stock, identifying the stock and the number of shares to be purchased.

The above exercise delays a proposed transaction. It causes many broker-dealer firms to adopt a policy of not allowing their representatives to recommend penny stocks to their customers.

The Penny Stock Suitability Rule, described above, and the Penny Stock Disclosure Rule, described below, do not apply to the following:

• transactions not recommended by the broker-dealer,

• sales to institutional accredited investors,

• transactions in which the customer is a director, officer, general partner, or direct or indirect beneficial owner of more than 5 percent of any class of equity security of the issuer of the penny stock that is the subject of the transaction, and

• transactions in penny stocks by broker-dealers whose income from penny stock activities does not exceed five percent of their total income during certain defined periods.

The Penny Stock Disclosure Rule

Another Commission rule - the Penny Stock Disclosure Rule - requires a broker-dealer, who recommends the sale of a penny stock to a customer in a transaction not exempt from the suitability rule described above, to furnish the customer with a "risk disclosure document." This document is set forth in a federal regulation and contains the following information:

• A statement that penny stocks can be very risky, that investors often cannot sell a penny stock back to the dealer that sold them the stock,

• A warning that salespersons of penny stocks are not impartial advisers but are paid to sell the stock,

• The statement that federal law requires the salesperson to tell the potential investor in a penny stock,

• the "offer" and the "bid" on the stock, and

• the compensation the salesperson and his firm will receive for the trade,

• An explanation that the offer price and the bid price are the wholesale prices at which dealers are willing to sell and buy the stock from other dealers, and that in its trade with a customer the dealer may add a retail charge to these wholesale prices,

• A warning that a large spread between the bid and the offer price can make the resale of the stock very costly,

• Telephone numbers a person can call if he or she is a victim of fraud,

• Admonitions -

• to use caution when investing in penny stocks,

• to understand the risky nature of penny stocks,

• to know the brokerage firm and the salespeople with whom one is dealing, and

• to be cautious if one’s salesperson leaves the firm.

Finally, the customer must be furnished with a monthly statement including prescribed information relating to market and price information concerning the penny stocks held in the customer's account.

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Effects of the Rule

The above penny stock regulatory scheme is a response by the Congress and the Commission to known abuses in the telemarketing of low-priced securities by "boiler shop" operators. The scheme imposes market impediments on the sale and trading of penny stocks. It has a limiting effect on a stockholder's ability to resell a penny stock.

Our shares likely will trade below $5 a share on the OTC Markets exchange and be, for some time at least, shares of a "penny stock" subject to the trading market impediments described above.

Recent Sales of Unregistered Securities; Outstanding Stock Options

The Company sold no shares of any class of stock, nor issued any securities within the last two years up to and including June 30, 2019 apart from the conversion of 383,919 issued shares of our Series B Voting, Convertible, Preferred stock to 7,678,380 shares of unregistered common stock. Subsequent to June 30, 2019, the Company issued 175,000 shares of restricted common stock to Maxim Partners LLC (see Note 17 to the Consolidated Financial Statements). The Company has no stock option plan nor any outstanding stock warrants.

ITEM 6.          SELECTED FINANCIAL DATA

Not applicable.

ITEM 7.          MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis should be read in conjunction with the financial statements and the accompanying notes thereto and is qualified in its entirety by the foregoing and by more detailed financial information appearing elsewhere in this annual report on Form 10-K. See "Consolidated Financial Statements."

Introduction

Concierge Technologies, Inc. (“Concierge”) or the (“Company”) conducts business through its wholly-owned operating subsidiaries operating in the U.S., New Zealand and Canada. The operations of the Company’s wholly-owned subsidiaries are more particularly described herein but are summarized as follows:

● Wainwright Holdings, Inc. (“Wainwright”), a U.S. based company, is the sole member of two investment services limited liability company subsidiaries that manages, operates or is an investment advisor to exchange traded funds organized as limited partnerships or investment trusts that issue shares that trade on the NYSE Arca stock exchange.

● Gourmet Foods, Ltd. (“Gourmet Foods”), a New Zealand based company, manufactures and distributes New Zealand meat pies on a commercial scale.

● Brigadier Security Systems (2000) Ltd. (“Brigadier”), a Canadian based company, sells and installs commercial and residential alarm monitoring systems.

● Kahnalytics, Inc. dba/Original Sprout (“Original Sprout”), a U.S. based company, is engaged in the wholesale distribution of hair and skin care products under the brand name Original Sprout on a global scale. The former business of Kahnalytics, providing live-streaming mobile video on a subscription basis, was insignificant and was terminated after transitioning to the current business of distributing hair and skin care products as of December 18, 2017.

Because the Company conducts its businesses through its wholly-owned operating subsidiaries, the risks related to our wholly-owned subsidiaries are also risks that impact the Company's financial condition and results of operations.  See, "Note 2. Summary of Significant Accounting Policies / Major Customers and Suppliers - Concentration of Credit Risk" in the consolidated financial statements for more information.

Critical Accounting Policies

A summary of our significant accounting policies is described in detail in Note 2 to our Consolidated Financial Statements.

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Plan of Operation for the Next Twelve Months

Our plan of operation for the next twelve months is to apply necessary resources, which may include experienced personnel, cash, or synergistic acquisitions made with cash, equity or debt, into growing each of our business units to their potential. Original Sprout is in the initial stages of transitioning from a largely boutique offering to a more mainstream product and as such we anticipate measurable growth in revenues for the coming years. Additionally, we are expecting moderate growth in Brigadier through focused management initiatives and consolidation within the security industry coupled with expanded product offerings. Similarly, we expect Gourmet Foods to be operating more efficiently under current management and continue to increase market share through additional product offerings and channels to market, including distribution in New Zealand of the products from Original Sprout. Wainwright will continue to develop innovative and new fund products to grow its portfolio. In addition to our long-term mission that is an acquisition strategy based upon identifying and acquiring profitable, mature, companies of a diverse nature and with in-place management that produces increased revenue streams, the Company is also focused upon building expertise and developing FinTech opportunities in the financial services sector. In a more general sense, the Company is characterizing its business in two categories; 1) financial services and 2) other operating units. The purpose is to isolate the cyclical nature of the financial services business from our other industry segments. As revenues from financial services fluctuate over time due to varying performance of the commodities markets, our other operations are expected to be stable and sustainable by comparison. By these initiatives we seek to:

● continue to gain market share for our wholly-owned subsidiaries’ areas of operation,

● increase our gross revenues and realize net operating profits,

● lower our operating costs by unburdening certain selling expenses to third party distributors,

● have sufficient cash reserves to pay down accrued expenses,

● attract parties who have an interest in selling their privately held companies to us,

● achieve efficiencies in accounting and reporting through consolidated operations of our subsidiaries from a management perspective,

● strategically pursue additional company acquisitions, and

● invest in the development of FinTech opportunities in the financial services space.

Results of Operations

Concierge and Subsidiaries

For the Year Ended June 30, 2019 Compared to the Year Ended June 30, 2018

Financial Summary

The table below summarizes each of Concierges subsidiaries into one of two categories. The Wainwright business is included in the Financial Services columns and all other subsidiaries, including Gourmet, Brigadier, and Original Sprout in the Other Operating Units columns. Corporate expenses are included in the Concierge Corporate columns. Note that our subsidiary Original Sprout shows operating results for only six months of the 2018 year which accounts for, in part, the increase in revenues and profits for 2019 over the 2018 year.

($’s in thousands)	Financial Services				Other Operating Units				Concierge Corporate				Consolidated
	2019	2018	Change		2019	2018	Change		2019	2018	Change		2019	2018	Change
			$	%			$	%			$	%			$	%
Revenue	$15,021	$18,744	($3,723)	(20%)	$11,928	$9,967	$1,961	20%					$26,949	$28,711	($1,762)	(6%)
% of total revenue	56%	65%		(9%)	44%	35%		9%
Cost of revenue					$6,936	$5,915	$1,021	17%					$6,936	$5,915	$1,021	17%
Gross profit	$15,021	$18,744	($3,723)	(20%)	$4,992	$4,052	$940	23%					$20,013	$22,796	($2,783)	(12%)
Operating expenses	$14,095	$15,527	($1,432)	(9%)	$3,950	$3,488	$462	13%	$1,212	$974	$238	24%	$19,257	$19,989	($732)	(4%)
% of total operating expenses	73%	78%		(5%)	21%	17%		4%	6%	5%		1%
Income (loss) from operations	$926	$3,217	($2,291)	(71%)	$1,042	$564	$478	85%	($1,212)	($974)	($238)	(24%)	$756	$2,807	($2,051)	(73%)
Other (expense) / income	( $148)	($324)	$176	54%	$25	$43	($18)	(42%)	($24)	($25)	$1	4%	($147)	($306)	$159	(52%)
Income (loss) before income taxes	$778	$2,893	($2,115)	(73%)	$1,067	$607	$460	76%	($1,236)	($999)	($237)	(24%)	$609	$2,501	($1,892)	(76%)

 Revenue and Operating Income

Consolidated revenue for the year ended June 30, 2019 was $26.9 million representing a $1.8 million decrease from the prior year revenue of $28.7 million. While net revenues decreased as a result of lower Fund assets under management ("AUM") from our fund management business by approximately $3.7 million for the year ended June 30, 2019 as compared to the year ended June 30, 2018, the corporation's revenues derived from its other operating units increased by approximately $1.9 million over the same period, resulting in a net reduction to revenue in fiscal year 2019 of approximately 6%. Concierge produced an operating income for the year ended June 30, 2019 of $0.8 million as compared to $2.8 million for the year ended June 30, 2018. This represents a decrease in operating income of $2.0 million for the year ended June 30, 2019 when compared to the year ended June 30, 2018 of approximately 73%. The decrease in operating income was primarily attributable to lower fund management revenue from Wainwright due to lower AUM.

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Other Expenses 

Other expense, including provision for income tax of $0.3 million and $0.8 million, for the years ended June 30, 2019 and 2018 were $0.5 million and $1.1 million for the years ended June 30, 2019 and 2018, respectively, resulting in a net income of $0.3 million and $1.7 million, respectively. After giving consideration to currency translation losses of $45 thousand our comprehensive income for the year ended June 30, 2019 was $0.2 million as compared to the year ended June 30, 2018 where there was a currency translation loss of $214 thousand and a short-term investment valuation increase of $244 thousand resulting in comprehensive income of $1.8 million. Comprehensive gain and loss are comprised of fluctuations in foreign currency exchange rates and effects in the valuation of our holdings in New Zealand and Canada.

Net Income

Overall, the net income between the year ended June 30, 2019 as compared to the year ended June 30, 2018 decreased by approximately $1.4 million or approximately 85% to approximately $0.3 million. The reduction in profits for the year ended June 30, 2019 was primarily attributable to lower fund management revenue from Wainwright due to a lower amount of AUM, partially offset by decreases in Wainwright variable operating expenses, and general and administrative costs.

Income Tax

Provision for income tax for the years ended June 30, 2019 and 2018 are $0.3 million and $0.8 million, respectively, primarily attributable to our United States operations through our Wainwright subsidiary. 

Wainwright Holdings

Wainwright was founded as a holding company in March 2004 as a Delaware corporation with one subsidiary, Ameristock Corporation, which was an investment adviser to Ameristock Mutual Fund, Inc., a registered 1940 Act large cap value equity fund. In January 2010, Ameristock Corporation was spun off as a standalone company. In May 2005, USCF was formed as a single member limited liability company in the state of Delaware. In June 2013, USCF Advisers was formed as a Delaware limited liability company and in July 2014, was registered as an investment adviser under the Investment Advisers Act of 1940, as amended. In November 2013, the USCF Advisers board of managers formed USCF ETF Trust (“ETF Trust”) and in July 2016, the USCF Mutual Funds Trust (“Mutual Funds Trust” and together with “ETF Trust” the “Trusts”) both as open-end management investment companies registered under the Investment Company Act of 1940, as amended ("the 1940 Act"). The Trusts are authorized to have multiple segregated series or portfolios. Wainwright owns all of the issued and outstanding limited liability company membership interests of its subsidiaries, USCF and USCF Advisers, each a Delaware limited liability company and are affiliated companies.  USCF serves as the general partner (“General Partner”) for various limited partnerships (“LP”) and sponsor (“Sponsor”) as noted below. USCF and USCF Advisers are subject to federal, state and local laws and regulations generally applicable to the investment services industry. USCF is a commodity pool operator (“CPO”) subject to regulation by the Commodity Futures Trading Commission (the "CFTC") and the National Futures Association (the “NFA”) under the Commodities Exchange Act (“CEA”). USCF Advisers is an investment adviser registered under the Investment Advisers Act of 1940, as amended and has registered as a CPO under the CEA. Exchange traded products (“ETPs”) issued or sponsored by USCF are required to be registered with the Securities and Exchange Commission (the “SEC”) in accordance with the Securities Act of 1933.  As of June 30, 2018, USCF Advisers advises three exchange traded funds (“ETFs”) and one commodity mutual fund registered with the SEC under the Investment Company Act of 1940. Wainwright and subsidiaries USCF and USCF Advisers are collectively referred to as “Wainwright” hereafter. 

USCF is currently the General Partner in the following Securities Act of 1933 LP commodity based index funds and Sponsor (“Sponsor”) for the fund series within the United States Commodity Index Funds Trust (“USCIF Trust”) and the USCF Funds Trust (“USCF Funds Trust”):

USCF as General Partner for the following funds:
United States Oil Fund, LP (“USO”)	Organized as a Delaware limited partnership in May 2005
United States Natural Gas Fund, LP (“UNG”)	Organized as a Delaware limited partnership in November 2006
United States Gasoline Fund, LP (“UGA”)	Organized as a Delaware limited partnership in April 2007
United States Diesel Heating Oil Fund, LP (“UHN”)	Organized as a Delaware limited partnership in April 2007; Liquidated September 12, 2018
United States 12 Month Oil Fund, LP (“USL”)	Organized as a Delaware limited partnership in June 2007
United States 12 Month Natural Gas Fund, LP (“UNL”)	Organized as a Delaware limited partnership in June 2007
United States Short Oil Fund, LP (“DNO”)	Organized as a Delaware limited partnership in June 2008; Liquidated September 12, 2018
United States Brent Oil Fund, LP (“BNO”)	Organized as a Delaware limited partnership in September 2009
USCF as fund Sponsor - each a series within the USCIF Trust
United States Commodity Index Funds Trust (“USCIF Trust”)	A series trust formed in Delaware December 2009
United States Commodity Index Fund (“USCI”)	A commodity pool formed in April 2010 and made public August 2010
United States Copper Index Fund (“CPER”)	A commodity pool formed in November 2010 and made public November 2011
United States Agriculture Index Fund (“USAG”)	A commodity pool formed in November 2010 and made public April 2012; Liquidated September 12, 2018
USCF as fund Sponsor - each a series within the USCF Funds Trust:
USCF Funds Trust (“USCF Funds Trust”)	A series trust formed in Delaware March 2016
United States 3X Oil Fund (“USOU”)	A commodity pool formed in May 2017 and made public July 2017
United States 3X Short Oil Fund (“USOD”)	A commodity pool formed in May 2017 and made public July 2017

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USCF Advisers serves as the investment adviser to the fund(s) listed below within the Trusts and has overall responsibility for the general management and administration for the Trusts. Pursuant to the current Investment Advisory Agreements, USCF Advisers provides an investment program for the Trusts’ fund(s) and manages the investment of the assets.

Advisers as fund manager for each series within the USCF ETF Trust and the USCF Mutual Funds Trust:
USCF ETF Trust (“ETF Trust”)	Organized as a Delaware statutory trust in November 2013
USCF SummerHaven SHPEI Index Fund ("BUY")	Fund launched November 30, 2017
USCF SummerHaven SHPEN Index Fund ("BUYN")	Fund launched November 30, 2017
Stock Split Index Fund (“TOFR”)	Fund launched September 2014; Liquidated October 20, 2017
Restaurant Leaders Index Fund (“MENU”)	Fund launched November 2016; Liquidated October 20, 2017
USCF SummerHaven Dynamic Commodity Strategy No K-1 Fund	Fund launched May 2018
USCF Mutual Funds Trust ("Mutual Funds Trust")	Organized as a Delaware statutory trust in July 2016
USCF Commodity Strategy Fund ("USCFX" and "USCIX")	Fund launched March 2017; Liquidated March 21, 2019

All USCF funds and the Trusts' funds are collectively referred to as the “Funds” hereafter.

Wainwright’s revenue and expenses are primarily driven by the amount AUM. Wainwright earns monthly management and advisory fees based on agreements with each Fund as determined by the contractual basis point management fee structure in each agreement multiplied by the average AUM over the given period. Many of the company’s expenses are dependent upon the amount of AUM. These variable expenses include Fund administration, custody, accounting, transfer agency, marketing and distribution, and sub-adviser fees and are primarily determined by multiplying contractual fee rates by AUM. Total Operating Expenses are grouped into the following financial statement line items: General and Administrative, Marketing, Operations and Salaries and Compensation.

For the Year Ended June 30, 2019, Compared to the Year Ended June 30, 2018

Revenue

Average AUM for the year ended June 30, 2019 was at $2.7 billion, as compared to approximately $3.4 billion from the year ended June 30, 2018 primarily due to a decrease in USO,USCI and UNG AUM. As a result, the revenues from management and advisory fees decreased by approximately $3.7 million, or 20%, to $15.0 million for the year ended June 30, 2019 as compared to the year ended June 30, 2018 where revenues from management and advisory fees totaled $18.7 million.

Expenses

Wainwright’s total operating expenses for year ended June 30, 2019 decreased by $1.4 million to $14.1 million, or approximately 10%, from $15.5 million for the year ended June 30, 2018. Variable expenses, as described above, decreased by $0.8 million over the respective twelve-month period due to due to lower AUM which reduced variable marketing and distribution expenses, sub-advisory fees and other variable costs. General and Administrative expenses decreased $0.4 million to $2.1 million for the year ended June 30, 2019 from $2.5 million for the year ended June 30, 2018 due to decreases in legal and professional fees and new fund startup expenses. Total marketing expenses decreased $0.8 million to $2.5 million for the year ended June 30, 2019 as compared to the prior year period due to a decrease of $0.4 million in advertising and marketing conferences along with a  $0.4 million reduction in variable distribution costs as a result of lower AUM. Employee Salaries and Compensation expenses were approximately $4.8 million and $4.6 million for the years ended June 30, 2019 and June 30, 2018, respectively, due to accrued vacation and small increases in annual compensation offset by a reduction in annual bonuses.

Income

Income before income taxes for the year ended June 30, 2019 decreased $2.1 million to $0.8 million from $2.9 million for year ended June 30, 2018 due to $3.7 million in lower revenue as a result of lower AUM, offset by a $1.4 million  reduction in operating expenses along with a decrease of $0.2 million in other expenses.

Gourmet Foods, Ltd.

Gourmet Foods Limited (“Gourmet Foods”), was organized in its current form in 2005 (previously known as Pats Pantry Ltd). Pats Pantry was founded in 1966 to produce and sell wholesale bakery products, meat pies and patisserie cakes and slices, in New Zealand. Gourmet Foods, located in Tauranga, New Zealand, sells substantially all of its goods to supermarkets and service station chains with stores located throughout New Zealand. Gourmet Foods also has a large number of smaller independent lunch bars, cafes and corner dairies among the customer list, however they comprise a relatively insignificant dollar volume in comparison to the primary accounts of large distributors and retailers.

Gourmet Foods operates exclusively in New Zealand and thus the New Zealand dollar is its functional currency. In order to consolidate Concierge’s reporting currency, the US dollar, with that of Gourmet Foods, Concierge records foreign currency translation adjustments and transaction gains and losses in accordance with ASC 830-30. The translation of New Zealand currency into U.S. dollars is performed for balance sheet accounts using the exchange rates in effect at the balance sheet date and for revenue and expense accounts using a weighted average exchange rate during the period. Gains and losses resulting from foreign currency translations are included in foreign currency translation (loss) gain on the Consolidated Statements of Comprehensive Income as well as accumulated other comprehensive (loss) income found on the Consolidated Balance Sheets.

18

For the Year Ended June 30, 2019, Compared to the Year Ended June 30, 2018

Revenue

Net revenues for the year ended June 30, 2019 were $4.7 million with cost of goods sold of $3.3 million resulting in a gross profit of $1.4 million as compared to the year ended June 30, 2018 where net revenues were $5.0 million; cost of goods sold were $3.5 million; and gross profit was $1.5 million.

Expenses

General, administrative and selling expenses, including wages and marketing, for the years ended June 30, 2019 and 2018 were $1 million and $1.1 million producing operating income of $0.4 million and $0.4 million, respectively, or approximately 9% net operating profit for 2019, 8% for 2018. The depreciation expense, incentive bonus, and other income (expense) totaled approximately $0.4 million for the year ended June 30, 2019 as compared to $0.3 million for the year ended June 30, 2018. 

Income

Income for the year ended June 30, 2019, after expenses of approximately $0.4 million, resulted in approximately $46 thousand before income tax provision of approximately $59 thousand resulted in a net loss of approximately $13 thousand as compared to a net income of $99 thousand for the year ended June 30, 2018. Overall, net profit margins for the comparative periods are consistent and differences are attributed to depreciation expense, varying income tax provisions and the fluctuation of currency exchange rates with the New Zealand dollar.

Brigadier Security Systems (2000) Ltd.

Brigadier Security Systems (2000) Ltd. (“Brigadier”) was founded in 1985 and through internal growth and acquisitions the core business of Brigadier began in 1998. Today Brigadier is one of the largest SecurTek security monitoring dealers in Saskatchewan with offices in both major urban areas of Regina (dba Elite Security Systems (2005) Ltd.) and Saskatoon. SecurTek is owned by SaskTel which is Saskatchewan's leading Information and Communications Technology (ICT) provider with over 1.4 million customer connections across Canada. Brigadier is also a Honeywell Certified Access Control Integrator, Kantech Corporate Certified Integrator and UTC Interlogix Authorized dealer and the largest independent security contractor in the province. Brigadier provides comprehensive security solutions including access control, camera systems, fire alarm panels, and intrusion alarms to home and business owners as well as government offices, schools and public buildings. Brigadier typically sells hardware, installation service, and a monitoring contract to customers. Under the terms of its authorized dealer contract with the monitoring company, Brigadier earns monthly payments during the term of the monitoring contract in exchange for performance of customer service activities on behalf of the monitoring company.

Brigadier operates exclusively in Canada and thus the Canadian dollar is its functional currency. In order to consolidate Concierge’s reporting currency, the U.S. dollar, with that of Brigadier, Concierge records foreign currency translation adjustments and transaction gains and losses in accordance with ASC 830-30. The translation of Canadian currency into U.S. dollars is performed for balance sheet accounts using the exchange rates in effect at the balance sheet date and for revenue and expense accounts using a weighted average exchange rate during the period.

Gains and losses resulting from foreign currency translations are included in foreign currency translation (loss) gain on the Consolidated Statements of Comprehensive Income as well as accumulated other comprehensive (loss) income found on the Consolidated Balance Sheets.

For the Year Ended June 30, 2019, Compared to the Year Ended June 30, 2018

Revenue

Net revenues for the year ended June 30, 2019 were $3.6 million with cost of goods sold recorded as approximately $1.6 million, resulting in a gross profit of approximately $1.9 million with a gross margin of approximately 54% as compared to the year ended June 30, 2018 where net revenues were approximately $3.3 million with cost of goods sold of $1.5 million and a gross profit of $1.8 million, or approximately 55%.

19

Expenses

General, administrative and selling expenses for the year ended June 30, 2019 were $1.4 million producing an operating profit of $0.6 million or approximately 15% as compared to the year ended June 30, 2018 where operating profits were $0.4 million, or approximately 13%, with general, administrative and selling expenses of $1.4 million.

Income

Other expense comprised of depreciation, income tax, interest income, other income, and gain on sale of assets totaled approximately $145 thousand for the year ended June 30, 2019 resulting in income after income taxes of approximately $0.4 million as compared to income after income taxes of approximately $0.4 million for the year ended June 30, 2018 where other expense totaled $31 thousand.

Original Sprout

Kahnalytics was founded in 2015 and adopted the dba/Original Sprout in December 2017 (see Note 12 to the Consolidated Financial Statements). For the year ended June 30, 2017 (prior to the acquisition of the Original Sprout assets), Kahnalytics had incurred de minimis operating losses insignificant to the overall enterprise. Prior to the acquisition of the Original Sprout assets, and as of June 30, 2017, the residual business the company was founded to oversee was being wound down and management expected to transition focus to another industry. As of June 30, 2018, this legacy business had been completely wound down.  Accordingly, the results of operations for the twelve-month period ending June 30, 2018 reflects only two quarters of business operations with the newly acquired assets and should not be viewed as indicative of a full twelve-month period of operations. Similarly, there is no meaningful comparative data for the twelve-month period ending June 30, 2018 as the business included nominal subscription sales to a web hosted service and not the wholesale distribution of beauty products as it currently exists. As a result, only the operating results for the twelve months ended June 30, 2019 are included below. Pro forma results for the fiscal year ended June 30, 2018 are included in Note 12.

For the Year Ended June 30, 2019

Revenue

Net revenues for the year ended June 30, 2019 were $3.6 million with cost of goods sold recorded as approximately $2 million resulting in a gross profit of approximately $1.6 million and a gross margin of approximately 46%. Pro forma results for the year ended June 30, 2018 are included in Note 12.

Expenses

General, administrative and selling expenses were approximately $0.9 million resulting in an operating income of approximately $0.7 million or approximately 20%.

Income

After consideration given to income tax provision, other income, and depreciation expense, the net income for the year ended June 30, 2019 was approximately $0.4 million.

20

Liquidity and Capital Resources

Concierge is a holding company that conducts its operations through its subsidiaries. At its holding-company level, its liquidity needs relate to operational expense, the funding of additional business acquisitions and new investment opportunities. Our operating subsidiaries' principal liquidity requirements arise from cash used in operating activities, debt service, and capital expenditures, including purchases of equipment and services, operating costs and expenses, and income taxes.

As of June 30, 2019, we had $6.5 million of cash and cash equivalents on a consolidated basis as compared to $7.5 million as of June 30, 2018. The reduction in cash was due to a reduction in net income as well as cash paid for a prior year acquisition. Additionally, the movement of $0.75 million from administrative cash accounts to interest bearing investment accounts along with a reduction in current liabilities from payments made during the year ended June 30, 2019 had an impact on the June 30, 2019 cash balance.

During the current and past fiscal years combined, Concierge has invested approximately $3.5 million in cash towards purchasing and assimilating the Original Sprout assets into the Concierge Technologies group of companies. During the previous years ended June 30, 2016 through June 30, 2017, Concierge invested approximately $3.3 million in cash to acquire Gourmet Foods and Brigadier Security Systems as well as the acquisition through a stock-for-stock exchange of Wainwright, which provides a significant revenue stream and value. Despite these cash investments, our working capital position remains strong at $12.3 million and our position has strengthened year-to-year. Management forecasts Wainwright, Gourmet Foods, Brigadier and Original Sprout to all produce a profit during the coming fiscal year and the realization of those profits by Concierge is not expected to be significantly impacted by foreign currency fluctuations against the U.S. dollar during the period. While Concierge intends to maintain and improve its revenue stream from wholly owned subsidiaries, Concierge continues to pursue acquisitions of other profitable companies which meet its target profile. Provided Concierge’s subsidiaries continue to operate as they are presently, and are projected to operate, Concierge has sufficient capital to pay its general and administrative expenses for the coming fiscal year and to adequately pursue its long term business objectives.

Borrowings

As of June 30, 2019, we had $0.7 million of related-party and third-party indebtedness on a consolidated basis as compared to $0.8 million as of June 30, 2018. Concierge, without inclusion of its subsidiary companies, as of June 30, 2019 and June 30, 2018, had $0.6 million of indebtedness. We are not required to make interest payments on our notes until the maturity date.

Current related party notes payable consist of the following:

	June 30, 2019		June 30, 2018
Notes payable to shareholder, interest rate of 8%, unsecured and payable on December 31, 2012 (past due)		3,500		3,500
Notes payable to shareholder, interest rate of 4%, unsecured and payable on May 25, 2022		250,000		250,000
Notes payable to shareholder, interest rate of 4%, unsecured and payable on April 8, 2022		350,000		350,000
	$	603,500	$	603,500

As of June 30, 2019, Brigadier had, in the aggregate, an outstanding principal balance of CD$114,292 (approx. US$87,297) related to new vehicle purchases. For each vehicle purchased, the loan principal together with interest is amortized over 60 equal monthly installments. The Consolidated Balance Sheets as of June 30, 2019 and June 30, 2018 reflect the amount of the principal balance which is due within twelve months as a current liability of US$26,241 and US$46,705, respectively. Principal amounts under the loans which is due after twelve months are recorded in long term liabilities as US$61,057 and US$149,491 at June 30, 2019 and June 30, 2018 respectively. Interest on the loans is expensed or accrued as it becomes due. Total interest on all vehicle loans for the years ended June 30, 2019 and 2018 was US$5,197 and US$4,209, respectively.

21

Investments

Wainwright, from time to time, provides initial investments in the creation of ETP funds that Wainwright manages. Wainwright classifies these investments as current assets as these investments are generally sold within one year from the balance sheet date. These investments are described further in Note 7 to our Financial Statements.

Reverse Stock Split

On November 17, 2017 our Board and the majority stockholders approved the adoption of a one-for-thirty (1:30) reverse stock split whereby each thirty shares of our common stock and Series B Preferred stock issued and outstanding as of the record date established by the Board shall be combined into one share of common stock or preferred stock, as applicable (the “Reverse Stock Split”). The Reverse Stock Split became effective on December 15, 2017 and all share amounts have been retroactively adjusted for this reverse stock split.

Dividends

Our strategy on dividends is to declare and pay dividends only from retained earnings and only when our Board of Directors deems it prudent and in the best interests of the company to declare and pay dividends. We have paid no dividends and we do not expect to pay any dividends over the next fiscal year.

Off-Balance Sheet Arrangements

At June 30, 2019, and as of September 30, 2019, we have not entered into any transaction, agreement or other contractual arrangement with an entity unconsolidated with us under which we have:

● An obligation under a guarantee contract,

● A retained or contingent interest in assets transferred to the unconsolidated entity or similar arrangement that serves as credit, liquidity or market risk support to such entity for such assets,

● An obligation, including a contingent obligation, arising out of a variable interest in an unconsolidated entity that is held by, and material to, us where such entity provides financing, liquidity, market risk or credit risk support to, or engages in leasing, hedging, or research and development services with us.

ITEM 7A.       QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

ITEM 8.          FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

Our financial statements appear as follows:

Report of Independent Registered Public Accounting Firm	F-1
Consolidated Balance Sheets, as of June 30, 2019 and 2018	F-2
Consolidated Statements of Operations for the years ended June 30, 2019 and 2018	F-3
Consolidated Statements of Comprehensive Income for the years ended June 30, 2019 and 2018	F-4
Consolidated Statements of Convertible Preferred Stock and Stockholders’ Equity for the years ended June 30, 2019 and 2018	F-5
Consolidated Statements of Cash Flows, for the years Ended June 30, 2019 and 2018	F-6
Notes to Consolidated Financial Statements	F-7

22

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and
Stockholders of Concierge Technologies, Inc. and Subsidiaries

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of Concierge Technologies, Inc. and its subsidiaries (the "Company") as of June 30, 2019 and 2018, the related consolidated statements of operations, comprehensive income, convertible preferred stock and stockholders’ equity, and cash flows for each of the two years in the period ended June 30, 2019, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of June 30, 2019 and 2018, and the results of its operations and its cash flows for each of the two years in the period ended June 30, 2019, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ BPM LLP

San Francisco, California

September 30, 2019

We have served as the Company's auditor since 2017.

F-1

CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	June 30, 2019			June 30, 2018
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	6,481,815		$	7,524,114
Accounts receivable, net		939,649			1,068,240
Accounts receivable - related parties		1,037,146			1,458,159
Inventories		1,008,662			931,065
Prepaid income tax and tax receivable		1,754,369			2,138,636
Investments		3,756,596			3,204,005
Other current assets		546,105			374,617
Total current assets		15,524,342			16,698,836
Restricted cash		13,436			13,536
Property and equipment, net		757,014			1,080,471
Goodwill		915,790			915,790
Intangible assets, net		2,659,723			2,995,231
Deferred tax assets, net		859,696			865,120
Other assets, long - term		523,607			532,165
Total assets	$	21,253,608		$	23,101,149
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses	$	2,867,081		$	3,249,387
Expense waivers – related parties		325,821			662,650
Purchase consideration payable		-			1,205,000
Notes payable - related parties		3,500			3,500
Equipment loans, current portion		26,241			46,705
Total current liabilities		3,222,643			5,167,242
LONG TERM LIABILITIES
Notes payable - related parties		600,000			600,000
Equipment loans, net of current portion		61,057			149,491
Deferred tax liabilities		176,578			208,419
Total liabilities		4,060,278			6,125,152
STOCKHOLDERS' EQUITY
Preferred stock, $0.001 par value; 50,000,000 authorized
Series B: 53,032 issued and outstanding at June 30, 2019 and 436,951 at June 30, 2018		53			437
Common stock, $0.001 par value; 900,000,000 shares authorized; 37,237,519 shares issued and outstanding at June 30, 2019 and 29,559,139 at June 30, 2018		37,237			29,559
Additional paid-in capital		9,178,838			9,186,132
Accumulated other comprehensive (loss) income		(175,659	)		148,808
Retained earnings		8,152,861			7,611,061
Total stockholders' equity		17,193,330			16,975,997
Total liabilities and stockholders' equity	$	21,253,608		$	23,101,149

The accompanying notes are an integral part of these consolidated financial statements.

F-2

CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

	Year Ended			Year Ended
	June 30, 2019			June 30, 2018
Net revenue
Fund management - related party	$	15,021,439		$	18,744,313
Food products		4,747,358			4,968,158
Security systems		3,558,580			3,303,584
Beauty products and other		3,621,246			1,694,534
Net revenue		26,948,623			28,710,589
Cost of revenue		6,936,421			5,914,719
Gross profit		20,012,202			22,795,870
Operating expense
General and administrative expense		4,205,389			4,828,241
Fund operations		4,494,001			4,933,437
Marketing and advertising		2,910,447			3,554,507
Depreciation and amortization		702,320			576,674
Salaries and compensation		6,944,457			6,096,232
Total operating expenses		19,256,614			19,989,091
Income from operations		755,588			2,806,779
Other (expense) income:
Other (expense) income		(484,028	)		(316,337	)
Interest and dividend income		366,796			111,929
Interest expense		(29,493	)		(101,089	)
Total other (expense) income, net		(146,725	)		(305,497	)
Income before income taxes		608,863			2,501,282
Provision of income taxes		347,014			766,596
Net income	$	261,849		$	1,734,686
Weighted average shares of common stock
Basic		32,588,418			29,559,139
Diluted		38,298,159			38,298,159
Net income per common share
Basic	$	0.01		$	0.06
Diluted	$	0.01		$	0.05

The accompanying notes are an integral part of these consolidated financial statements.

F-3

CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

	Year Ended			Year Ended
	June 30, 2019			June 30, 2018
Net income	$	261,849		$	1,734,686
Other comprehensive income (loss):
Foreign currency translation (loss) gain		(44,516	)		(214,284	)
Changes in short-term investment valuation		-			243,754
Comprehensive income	$	217,333		$	1,764,156

The accompanying notes are an integral part of these consolidated financial statements.

F-4

CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF  CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY

FOR THE YEARS ENDED JUNE 30, 2019 AND 2018

	Preferred Stock (Series B)						Common Stock
	Number of Shares			Amount			Number of Shares		Par Value		Additional Paid - in Capital			Accumulated Other Comprehensive Income (Loss)			Retained Earnings		Total Stockholders' Equity
Balance at July 1, 2017		436,951		$	2,011,934			29,559,139	$	29,559	$	7,174,635		$	119,338		$	5,876,375	$	13,199,907
Reclassification of Series B Preferred stock par value (1)		-			437			-		-		-			-			-		437
Reclassification of Series B Preferred stock to additional paid-in capital (1)		-			(2,011,497	)		-		-		2,011,497			-			-		2,011,497
Stockholders' equity following reverse stock split (1)		436,951			437			29,559,139		29,559		9,186,132			119,338			5,876,375		15,211,841
Change in investment valuation		-			-			-		-		-			243,754			-		243,754
(Loss) on currency translation		-			-			-		-		-			(214,284	)		-		(214,284	)
Net income		-			-			-		-		-			-			1,734,686		1,734,686
Balance at June 30, 2018		436,951			437			29,559,139		29,559		9,186,132			148,808			7,611,061		16,975,997
(Loss) on currency translation															(44,516	)				(44,516	)
Reclassification of investment gains															(279,951	)		279,951		-
Conversion of preferred shares		(383,919	)		(384	)		7,678,380		7,678		(7,294	)							-
Net income																		261,849		261,849
Balance at June 30, 2019		53,032		$	53			37,237,519	$	37,237	$	9,178,838		($	175,659	)	$	8,152,861	$	17,193,330

Note (1) Upon issuance of the preferred shares in the Wainwright acquisition, the Company no longer had sufficient authorized, unissued, common stock to allow for Series B conversion. Accordingly, the Series B was reclassified to the mezzanine section. On December 15, 2017 a 1:30 reverse stock split was completed and allowed for the Series B shares to be moved from the mezzanine section to stockholders' equity. All share amounts have been adjusted for the reverse stock split (Note 13).

The accompanying notes are an integral part of these consolidated financial statements.

F-5

 CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

	For the years ended
	2019			2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	261,849		$	1,734,686
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		702,320			576,674
Deferred taxes		(26,417	)		564,992
Bad debt expense		2,075			51,747
Unrealized loss on investments		1,995			359,666
Realized (gain) on sale of investments		(30,718	)		(3,592	)
(Gain) on disposal of equipment		(3,369	)		(8,364	)
(Increase) decrease in current assets:
Accounts receivable, net		128,105			7,137
Accounts receivable - related party		421,013			304,112
Prepaid income taxes and tax receivable		421,845			(906,085	)
Inventories		(79,127	)		(162,388	)
Other current assets		(161,254	)		4,045
Increase (decrease) in current liabilities:
Accounts payable and accrued expenses		(425,690	)		406,126
Expense waiver -  related party		(336,829	)		73,557
Net cash provided by operating activities		875,798			3,002,313
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash paid for acquisition of business assets		(1,205,000	)		(2,277,172	)
Purchase of equipment - net of disposals		(50,165	)		(318,064	)
Sale of investments		3,230,891			1,372,019
Purchase of investments		(3,754,132	)		(1,109,596	)
Net cash used in investing activities		(1,778,406	)		(2,332,813	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds of equipment loan		-			178,604
Repayment of equipment loan		(108,898	)		(67,660	)
Net cash (used in) provided by financing activities		(108,898	)		110,944
Effect of exchange rate change on cash, cash equivalents and restricted cash		(30,893	)		13,184
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH		(1,042,399	)		793,628
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING BALANCE		7,537,650			6,744,022
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE	$	6,495,251		$	7,537,650
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid during the period for:
Interest paid	$	29,493		$	-
Income taxes paid	$	202,363		$	965,272
Purchase consideration payable (see Note 12)	$	-		$	1,205,000

The accompanying notes are an integral part of these consolidated financial statements.

F-6

NOTE 1.     ORGANIZATION AND DESCRIPTION OF BUSINESS

Concierge Technologies, Inc., (the “Company” or “Concierge”), a Nevada corporation, operates through its wholly owned subsidiaries who are engaged in varied business activities. The operations of the Company’s wholly-owned subsidiaries are more particularly described herein but are summarized as follows:

● Wainwright Holdings, Inc. (“Wainwright”), a U.S. based company, is the sole member of two investment services limited liability company subsidiaries, United States Commodity Funds LLC (“USCF”), and USCF Advisers LLC (“USCF Advisers”), each of which manages, operates or is an investment advisor to exchange traded funds organized as limited partnerships or investment trusts that issue shares which trade on the NYSE Arca stock exchange.

● Gourmet Foods, Ltd. (“Gourmet Foods”), a New Zealand based company, manufactures and distributes New Zealand meat pies on a commercial scale.

● Brigadier Security Systems (2000) Ltd. (“Brigadier”), a Canadian based company, sells and installs commercial and residential alarm monitoring systems.

● Kahnalytics, Inc. dba/Original Sprout (“Original Sprout”), a U.S. based company, is engaged in the wholesale distribution of hair and skin care products under the brand name Original Sprout on a global scale. The former business of Kahnalytics, providing live-streaming mobile video on a subscription basis, was insignificant and was terminated after transitioning to the current business of distributing hair and skin care products.

See “Note 12. Business Combinations” for a description of the terms of our acquisitions for our operating businesses.

Concierge manages its operating businesses on a decentralized basis. There are no centralized or integrated operational functions such as marketing, sales, legal or other professional services and there is little involvement by Concierge’s management in the day-to-day business affairs of its operating subsidiary businesses. Concierge’s corporate management is responsible for capital allocation decisions, investment activities and selection and retention of the Chief Executive to head each of the operating subsidiaries. Concierge's corporate management is also responsible for corporate governance practices, monitoring regulatory affairs, including those of its operating businesses and involvement in governance-related issues of its subsidiaries as needed.

NOTE 2.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Accounting Principles

The Company has prepared the accompanying financial statements on a consolidated basis. In the opinion of management, the accompanying consolidated balance sheets and related statements of income and comprehensive income, and cash flows include all adjustments, consisting only of normal recurring items, necessary for their fair presentation, prepared on an accrual basis, in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

Principles of Consolidation

The accompanying condensed consolidated financial statements, which are referred herein as the “Financial Statements” include the accounts of Concierge and its wholly owned subsidiaries, Wainwright, Gourmet Foods, Brigadier and Original Sprout.

All significant inter-company transactions and accounts have been eliminated in consolidation.

Use of Estimates

The preparation of the Financial Statements are in conformity with U.S. GAAP which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

F-7

Cash and Cash Equivalents

Cash and cash equivalents include all highly liquid debt instruments with original maturities of three months or less. The Company maintains its cash and cash equivalents in financial institutions in the United States, Canada, and New Zealand. Accounts in the United States are insured by the Federal Deposit Insurance Corporation up to $250,000 per depositor, and accounts in Canada are insured by the Canada Deposit Insurance Corporation up to CD$100,000 per depositor. Accounts in New Zealand are uninsured. The Company has, at times, held deposits in excess of insured amounts, but the Company does not expect any losses in such accounts.

Accounts Receivable, net and Accounts Receivable - Related Parties

Accounts receivable, net, consist of receivables from the Brigadier, Gourmet Foods and Original Sprout businesses. Management regularly reviews the composition of accounts receivable and analyzes customer credit worthiness, customer concentrations, current economic trends and changes in customer payment patterns to determine whether or not an account should be deemed uncollectible. Reserves, if any, are recorded on a specific identification basis. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. As of June 30, 2019 and June 30, 2018, the Company had $2,075 and $51,747, respectively, listed as doubtful accounts.

Accounts receivable - related parties, consist of fund asset management fees receivable from the Wainwright business. Management fees receivable generally consist of one month of management fees which are collected in the month after they are earned. As of June 30, 2019, and June 30, 2018, there is no allowance for doubtful accounts as all amounts are deemed collectible.

Major Customers and Suppliers – Concentration of Credit Risk

Concierge, through Brigadier, is partially dependent upon its contractual relationship with the alarm monitoring company who provides monitoring services to Brigadier’s customers. In the event this contract is terminated, Brigadier would be compelled to find an alternate source of alarm monitoring, or establish such a facility itself. Management believes that the contractual relationship is sustainable, and has been for many years, with alternate solutions available should the need arise. Sales to the largest customer, which includes contracts and recurring monthly support fees, totaled 46% and 41% of the total Brigadier revenues for the years ended June 30, 2019 and June 30, 2018, respectively. The same customer accounted for approximately 37% of Brigadier's accounts receivable as of the balance sheet date of June 30, 2019 as compared to 35% as of June 30, 2018. Another large account, which has been a significant customer this fiscal year, contributed 12% of the total sales revenues for the year ended June 30, 2019 and nil for the year ended June 30, 2018. There were no accounts receivable from this customer as of June 30, 2019 or 2018.

Concierge, through Gourmet Foods, has three major customer groups comprising the gross revenues to Gourmet Foods; 1) grocery, 2) gasoline convenience stores, and 3) independent retailers. The grocery and food industry is dominated by several large chain operations, which are customers of Gourmet Foods, and there are no long term guarantees that these major customers will continue to purchase products from Gourmet Foods, however the relationships have been in place for sufficient time to give management reasonable confidence in their continuing business.

For the year ended and balance sheet date of June 30, 2019, Gourmet Foods’ largest customer in the grocery industry, who operates through a number of independently branded stores, accounted for approximately 22% of Gourmet Foods sales revenues and 28% of Gourmet Foods accounts receivable as compared to 21% and 33% for the prior year ended June 30, 2018, respectively. The second largest in the grocery industry accounted for approximately 12% of Gourmet Foods sales revenues for the year ended June 30, 2019 as compared to 12% for the year ended June 30, 2018. This same group accounted for 19% of Gourmet Foods accounts receivable as of June 30, 2019 as compared to 16% as of June 30, 2018. In the gasoline convenience store market Gourmet Foods supplies two major channels. The largest is a marketing consortium of gasoline dealers operating under the same brand who, for the year ended and balance sheet date of June 30, 2019, accounted for approximately 43% of Gourmet Foods’ gross sales revenues as compared to 41% for the year ended June 30, 2018. No single member of the consortium is responsible for a significant portion of Gourmet Foods’ accounts receivable. The third category of independent retailers and cafes accounted for the remaining balance of Gourmet Foods’ gross sales revenue, however the group members are independently owned and individually responsible for their financial obligations with no one customer accounting for a significant portion of revenues or accounts receivable.

Concierge, through Original Sprout, is not dependent upon any one customer or group of customers as no single customer or buying group consistently accounts for over 10% of the gross revenues, though due to timing of deliveries one customer accounted for approximately 10% of our gross revenues for the year ended June 30, 2019. There were 3 major distributor accounts, all current, representing 25%, 17%, and 12% for a total of 54% of all accounts receivable as of June 30, 2019. Original Sprout is partially dependent upon its relationship with a product packaging company who, at the direction of Original Sprout, manufactures the products, packages them in appropriate containers, and delivers the finished goods to Original Sprout for distribution to its customers. All of Original Sprout’s products are currently produced by this packaging company, although if this relationship were to fail there are other similar packaging companies available to Original Sprout at competitive pricing.

For our subsidiary, Wainwright, the concentration of risk and the relative reliance on major customers are found within the various funds it manages and the associated 12 month revenues and accounts receivable – related parties as of June 30, 2019 and June 30, 2018 as depicted below.

	Year ended June 30, 2019				Year ended June 30, 2018
	Revenue				Revenue
Fund
USO	$	7,308,354	49	%	$	9,752,223	52	%
USCI		4,051,605	27	%		4,253,921	23	%
UNG		1,922,596	13	%		2,753,723	15	%
All Others		1,738,884	11	%		1,984,446	10	%
Total	$	15,021,439	100	%	$	18,744,313	100	%

F-8

	June 30, 2019				June 30, 2018
	Accounts Receivable				Accounts Receivable
Fund
USO	$	526,981	51	%	$	674,535	46	%
USCI		236,251	23	%		431,288	30	%
UNG		141,413	13	%		182,399	12	%
All Others		132,501	13	%		169,937	12	%
Total	$	1,037,146	100	%	$	1,458,159	100	%

Inventories

Inventories, consisting primarily of food products and packaging in New Zealand, hair and skin care finished products and components in the U.S. and security system hardware in Canada, are valued at the lower of cost (determined on a FIFO basis) or net realizable value. Inventories include product cost, inbound freight and warehousing costs where applicable. Management compares the cost of inventories with the net realizable value and an allowance is made for writing down the inventories to their net realizable value, if lower. For the years ended June 30, 2019 and 2018 impairment to inventory value was recorded as $0 and $0, respectively. An assessment is made at the end of each fiscal year to determine what slow-moving inventory items, if any, should be deemed obsolete and written down to their estimated net realizable value. For the years ended June 30, 2019 and June 30, 2018, the expense for slow-moving or obsolete inventory was $10,317 and $0, respectively.

Property and Equipment

Property and equipment are stated at cost. Expenditures for maintenance and repairs are charged to earnings as incurred; additions, renewals and leasehold improvements are capitalized. Office furniture and equipment include office fixtures, computers, printers and other office equipment plus software and applicable packaging designs. Leasehold improvements, which are included in plant and equipment, are depreciated over the shorter of the useful life of the improvement and the length of the lease. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation is computed using the straight line method over the estimated useful life of the asset (see Note 5 to the Consolidated Financial Statements). 

Category	Estimated Useful Life (in years)
Plant and equipment:		5	to	10
Furniture and office equipment:		3	to	5
Vehicles		3	to	5

Intangible Assets

Intangible assets consist of brand names, domain names, recipes, non-compete agreements and customer lists. Intangible assets with finite lives are amortized over the estimated useful life and are evaluated for impairment at least on an annual basis and whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The Company assesses recoverability by determining whether the carrying value of such assets will be recovered through the discounted expected future cash flows. If the future discounted cash flows are less than the carrying amount of these assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. There was no impairment recorded for the year ended June 30, 2019 or for the year ended June 30, 2018.

Goodwill

Goodwill represents the excess of the aggregate purchase price over the fair value of the net assets acquired in a purchase businesses combination. Goodwill is tested for impairment on an annual basis during the fourth quarter of our fiscal year, or more frequently if events or changes in circumstances indicate that the carrying amount of goodwill may be impaired. The goodwill impairment test is a two-step test. Under the first step, the fair value of the reporting unit is compared with its carrying value including goodwill. If the fair value of the reporting unit exceeds its carrying value, step two does not need to be performed. If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the enterprise must perform step two of the impairment test. Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation. The residual fair value after this allocation is the implied fair value of the reporting unit goodwill. There was no impairment recorded for the years ended June 30, 2019 and 2018

F-9

Impairment of Long-Lived Assets

The Company tests long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. There was no impairment recorded for the years ended June 30, 2019 or 2018.

Investments and Fair Value of Financial Instruments

Short-term investments are classified as available-for-sale securities. The Company measures the investments at fair value at period end with any changes in fair value reflected as unrealized gains or (losses) which is included as part of other (expense) income. The Company values its investments in accordance with Accounting Standards Codification ("ASC") 820 – Fair Value Measurements and Disclosures (“ASC 820”). ASC 820 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurement. The changes to past practice resulting from the application of ASC 820 relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurement. ASC 820 establishes a fair value hierarchy that distinguishes between: (1) market participant assumptions developed based on market data obtained from sources independent of the Company (observable inputs) and (2) The Company’s own assumptions about market participant assumptions developed based on the best information available under the circumstances (unobservable inputs). The three levels defined by the ASC 820 hierarchy are as follows:

Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 assets include the following: quoted prices for similar assets or 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, and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs).

Level 3 – Unobservable pricing input at the measurement date for the asset or liability. Unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available.

In some instances, the inputs used to measure fair value might fall within different levels of the fair value hierarchy. The level in the fair value hierarchy within which the fair value measurement in its entirety falls shall be determined based on the lowest input level that is significant to the fair value measurement in its entirety.

F-10

Revenue Recognition

Revenue consists of fees earned through management of investment funds, sale of gourmet meat pies and related bakery confections in New Zealand, security alarm system installation and maintenance services in Canada, and wholesale distribution of hair and skin care products. Revenue is accounted for net of sales taxes, sales returns, trade discounts. The performance obligation is satisfied when the product has been shipped and title, risk of loss and rewards of ownership have been transferred. For most of the Company’s product sales or services, these criteria are met at the time the product is shipped, the subscription period commences, or the management fees are accrued. For our Brigadier subsidiary in Canada, the Company operates under contract with an alarm monitoring company that pays a percentage of their recurring monitoring fee to Brigadier in exchange for continued customer service and support functions with respect to each customer maintained under contract by the monitoring company. 

Recently Adopted Accounting Pronouncements - In May 2014, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance that set forth a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The Company adopted this new standard and its related amendments as of July 1, 2018 using the modified retrospective transition method, whereby the cumulative effect of initially applying the new standard recognized as an adjustment to the opening balance of stockholders equity. Results for reporting periods commencing on or after July 1, 2018 are presented under the new standard, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for that prior period. The impact of adoption did not have a material effect on our financial results. The adoption of the new standard impacted the identification of separate obligations for certain sales of security systems and related monitoring sales. The Company generates revenue, in part, through contractual monthly recurring fees received for providing ongoing customer support services to monitoring company clientele. The five-step process governing contract revenue reporting includes:

1. Identifying the contract(s) with customers

2. Identifying the performance obligations in the contract

3. Determining the transaction price

4. Allocate the transaction price to the performance obligations in the contract

5. Recognize revenue when or as the performance obligation is satisfied

Transactions involve security systems that are sold outright to the customer where the Company's performance obligations include customer support services and the sale and installation of the security systems. For such arrangements, the Company allocates a portion of the transaction price to each performance obligation based on a relative stand-alone selling price. Revenue associated with the sale and installation of security systems is recognized once installation is complete, and is reflected as security system revenue in the Consolidated Statements of Operations. Revenue associated with customer support services is recognized as those services are provided, and is included as a component of security system revenue in the Consolidated Statements of Operations, which for the year ended June 30, 2019, were approximately US$352,249, or approximately 10% of the total security system revenues. These revenues for the year ended June 30, 2019 account for approximately 1% of total consolidated revenues. None of the other subsidiaries of the Company generate revenues from long term contracts.

Because the Company has no contract with the end user, and the monthly payments for customer support services are made to the Company by the monitoring company who has a contract with the end user, and end user customers are subject to cancellation through no control of the Company; therefore, no deferred revenues or contingent liability reserves have been established with respect to these contracts. The services are deemed delivered as the obligation is acknowledged on a monthly basis.

Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will either expire before the Company is able to realize their benefits or if future deductibility is uncertain.

When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Applicable interest and penalties associated with unrecognized tax benefits are classified as additional income taxes in the statements of operations.

F-11

Advertising Costs

The Company expenses the cost of advertising as incurred. Marketing and advertising costs for the years ended June 30, 2019 and 2018 were $2.9 million and $3.6 million, respectively.

Other Comprehensive Income (Loss)

Foreign Currency Translation

We record foreign currency translation adjustments and transaction gains and losses in accordance with ASC 830-30, Foreign Currency Translation. The accounts of Gourmet Foods use the New Zealand dollar as the functional currency. The accounts of Brigadier Security System use the Canadian dollar as the functional currency. Assets and liabilities are translated at the exchange rate on the balance sheet date, and operating results are translated at the weighted average exchange rate throughout the period. Foreign currency transaction gains and (losses) can also occur if a transaction is settled in a currency other than the entity's functional currency. Accumulated currency translation gains and (losses) are classified as an item of accumulated other comprehensive income (loss) in the stockholders’ equity section of the consolidated balance sheet.

Short-Term Investment Valuation

In January 2016, the FASB issued authoritative guidance related to the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. Under the new guidance, equity investments with readily determinable fair values, except those accounted for under the equity method, will be measured at fair value with changes in fair value recognized in earnings rather than other comprehensive income (loss). In addition, this update clarifies the guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from the unrealized losses on certain debt securities. The Company adopted this guidance effective on July 1, 2018. See Recent Accounting Pronouncements below related to July 1, 2018 reclassification of accumulated other comprehensive income to retained earnings. Besides this reclassification there was no material impact to Consolidated Financial Statements as a result of the adoption.

Segment Reporting

The Company defines operating segments as components about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performances. The Company allocates its resources and assesses the performance of its sales activities based on the geographic locations of its subsidiaries (Refer to Note 16 of the Consolidated Financial Statements).

Business Combinations

We allocate the fair value of purchase consideration to the tangible assets acquired, liabilities assumed and intangible assets acquired based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired users, acquired trade names from a market participant perspective, useful lives and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, which is one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed. For the years ended June 30, 2019 and 2018 a determination was made that no adjustments were necessary.

Recent Accounting Pronouncements adopted during the year ended June 30, 2019  

On July 1, 2018 the Company adopted ASU 2016-01 Financial Instruments - Recognition and Measurement of Financial Assets and Financial Liabilities and Accounting Standards Codification ("ASC") 606 - Revenue from Contracts with Customers ("ASC 606"). A summary of the effects of the initial adoption of ASU 2016-01 and ASC 606 follows:

	ASU 2016-01			ASC 606		Total
Increase (decrease):
Assets	$	-		$	-	$	-
Liabilities	$	-		$	-	$	-
Accumulated other comprehensive income	$	(279,951	)	$	-	$	(279,951	)
Retained earnings	$	279,951		$	-	$	279,951

The above (“ASU 2016-01”) entry reclasses accumulated gains from changes in short-term investment valuations previously recorded in comprehensive income to retained earnings. ASU 2016-01 requires that unrealized gains and losses arising from changes in market values of our investments in equity securities be recorded in the condensed consolidated statements of operations rather than in accumulated other comprehensive income (loss) on the balance sheet. Prior to July 1, 2018 investment gains and losses related to equity securities were reflected on the condensed consolidated statements of comprehensive income.

The Company has reviewed new accounting pronouncements issued between September 28, 2018, the filing date of our most recent prior Annual Report on Form 10-K, and the filing date of this Annual Report on Form 10-K, and has determined that no new pronouncements, apart from Topic 842 described below, issued are relevant to the Company, and/or have, or will have, a material impact on the Company’s consolidated financial position, results of operations or disclosure requirements.

On July 1, 2019, the Company adopted FASB ASU 2016-02, Leases (Topic 842), which supersedes the requirements in Topic 840, Leases. The objective of Topic 842 is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from leases. It is expected that assets and liabilities will increase based on the present value of remaining lease payments for leases in place at the adoption date; however, based on the current level of long term leases in place, this is not material to the Company’s results of operations or financial position. See Note 15 for information on existing leases.

F-12

NOTE 3.          BASIC AND DILUTED NET LOSS PER SHARE

Basic net loss per share is based upon the weighted average number of common shares outstanding. Diluted net loss per share is based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. The Company does not have any options or warrants.

Diluted net income per share reflects the effects of shares actually potentially issuable upon conversion of convertible preferred stock.

The components of basic and diluted earnings per share were as follows:

	For the year ended June 30, 2019
	Net Income		Shares		Per Share
Basic income per share:
Net income available to common shareholders	$	261,849		32,588,418	$	0.01
Effect of dilutive securities		-		-		-
Preferred stock Series B		-		5,709,741		-
Diluted income per share	$	261,849		38,298,159	$	0.01

	For the year ended June 30, 2018
	Net Income		Shares		Per Share
Basic income per share:
Net income available to common shareholders	$	1,734,686		29,559,139	$	0.06
Effect of dilutive securities		-		-		-
Preferred stock Series B		-		8,739,020		-
Diluted income per share	$	1,734,686		38,298,159	$	0.05

NOTE 4.          INVENTORIES

Inventories for Gourmet Foods, Brigadier and Original Sprout consisted of the following totals:

	June 30,		June 30,
	2019		2018
Raw materials	$	208,284	$	195,674
Supplies and packing materials		188,035		142,257
Finished goods		612,343		593,134
Total inventories	$	1,008,662	$	931,065

F-13

NOTE 5.          PROPERTY AND EQUIPMENT

Property, plant and equipment consisted of the following as of June 30, 2019 and 2018:

	June 30, 2019			June 30, 2018
Plant and equipment	$	1,511,629		$	1,487,568
Furniture and office equipment		188,370			171,978
Vehicles		332,672			351,381
Total property and equipment, gross		2,032,671			2,010,927
Accumulated depreciation		(1,275,657	)		(930,456	)
Total property and equipment, net	$	757,014		$	1,080,471

For the years ended June 30, 2019 and 2018, depreciation expense for property, plant and equipment totaled $366,812 and $342,628, respectively. 

NOTE 6.          INTANGIBLE ASSETS

Intangible assets consisted of the following:

	June 30, 2019			June 30, 2018
Customer relationships	$	700,252		$	700,252
Brand name		1,142,122			1,142,122
Domain name		36,913			36,913
Recipes		1,221,601			1,221,601
Non-compete agreement		274,982			274,982
Total		3,375,870			3,375,870
Less : accumulated amortization		(716,147	)		(380,639	)
Net intangibles	$	2,659,723		$	2,995,231

CUSTOMER RELATIONSHIP

On August 11, 2015, the Company acquired Gourmet Foods. The fair value on the acquired customer relationships was estimated to be $66,153 and is amortized over the remaining useful life of 10 years. On June 2, 2016, the Company acquired Brigadier Security Systems. The fair value on the acquired customer relationships was estimated to be $434,099 and is amortized over the remaining useful life of 10 years. On December 18, 2017 the Company’s wholly-owned subsidiary, Kahnalytics, Inc., acquired the assets of Original Sprout LLC. The fair value of the acquired customer relationships was determined to be $200,000 and is amortized over the remaining useful life of 7 years.

	June 30, 2019			June 30, 2018
Customer relationships	$	700,252			700,252
Less: accumulated amortization		(203,492	)		(124,895	)
Total customer relationships, net	$	496,760			575,357

F-14

BRAND NAME

On August 11, 2015, the Company acquired Gourmet Foods. The fair value on the acquired brand name was estimated to be $61,429 and is amortized over the remaining useful life of 10 years. On June 2, 2016, the Company acquired Brigadier Security Systems. The fair value on the acquired brand name was estimated to be $340,694 and is amortized over the remaining useful life of 10 years. On December 18, 2017 the Company’s wholly-owned subsidiary, Kahnalytics, Inc., acquired the assets of Original Sprout LLC. The fair value of the acquired brand name was determined to be $740,000 and is considered to have an indefinite life. Unlike the brand names Gourmet Foods and Brigadier Security Systems, Original Sprout is an actual product name and recognized associated brand that is identifiable to consumers of the product and is the basis of the value proposition. That brand name will forever be associated with the product offering unless and until such time in the future as the Company may elect to discontinue the use of the brand and move towards establishment of an alternative product offering. Therefore, the Company will test for impairment of the brand name "Original Sprout" at each reporting interval with no amortization recognized.

	June 30, 2019			June 30, 2018
Brand name	$	1,142,122		$	1,142,122
Less: accumulated amortization		(129,084	)		(88,872	)
Total brand name, net	$	1,013,038		$	1,053,250

DOMAIN NAME

On August 11, 2015, the Company acquired Gourmet Foods, Ltd. The fair value on the acquired domain name was estimated to be $21,601 and is amortized over the remaining useful life of 5 years. On June 2, 2016, the Company acquired Brigadier Security Systems. The fair value on the acquired domain name was estimated to be $15,312 and is amortized over the remaining useful life of 5 years.

	June 30, 2019			June 30, 2018
Domain name	$	36,913		$	36,913
Less: accumulated amortization		(26,341	)		(18,958	)
Total brand name, net	$	10,572		$	17,955

RECIPES AND FORMULAS

On August 11, 2015, the Company acquired Gourmet Foods. The fair value on the recipes was estimated to be $21,601 and is amortized over the remaining useful life of 5 years. On December 18, 2017 the Company’s wholly-owned subsidiary, Kahnalytics, Inc., acquired the assets of Original Sprout LLC. The fair value of the acquired recipes and formulas was determined to be $1,200,000 and is amortized over the remaining useful life of 8 years. 

	June 30, 2019			June 30, 2018
Recipes and formulas	$	1,221,601		$	1,221,601
Less: accumulated amortization		(246,622	)		(92,303	)
Total recipes and formulas, net	$	974,979		$	1,129,298

NON-COMPETE AGREEMENT

On June 2, 2016, the Company acquired Brigadier Security Systems. The fair value on the acquired non-compete agreement was estimated to be $84,982 and is amortized over the remaining useful life of 5 years. On December 18, 2017 the Company’s wholly-owned subsidiary, Kahnalytics, Inc., acquired the assets of Original Sprout LLC. The fair value of the acquired non-compete agreement was determined to be $190,000 and is amortized over the remaining useful life of 5 years.

	June 30, 2019			June 30, 2018
Non-compete agreement	$	274,982		$	274,982
Less: accumulated amortization		(110,608	)		(55,612	)
Total non-compete agreement, net	$	164,374		$	219,370

AMORTIZATION EXPENSE

The total amortization expense for intangible assets for the years ended June 30, 2019 and June 30, 2018 was $335,508 and $234,046, respectively.

F-15

Estimated amortization expenses of intangible assets for the next five twelve-month periods ending June 30, are as follows:

Years Ending June 30,	Expense
2020	$	335,508
2021		326,034
2022		306,809
2023		286,507
2024		268,809
Thereafter		1,136,056
Total	$	2,659,723

NOTE 7.          OTHER ASSETS

Other Current Assets

Other current assets totaling $546,105 as of June 30, 2019 and $374,617 as of June 30, 2018 are comprised of various components as listed below.

	As of June 30, 2019		As of June 30, 2018
Prepaid expenses	$	462,215	$	358,869
Other current assets		83,890		15,748
Total	$	546,105	$	374,617

Investments

Wainwright, from time to time, provides initial investments in the creation of ETP funds that Wainwright manages. Wainwright classifies these investments as current assets as these investments are generally sold within one year from the balance sheet date. Investments in which no controlling financial interest or significant influence exists are recorded at fair value included in comprehensive income (loss) through June 30, 2018 and subsequently through earnings in accordance with ASU 2016-01. As of June 30, 2019 and June 30, 2018, investments were approximately $3.8 million and $3.2 million, respectively. Investments in which no controlling financial interest exists, but significant influence exists are recorded as per the equity method of investment accounting. As of June 30, 2019 and June 30, 2018, there were no investments requiring the equity method investment accounting.

Investments measured at estimated fair value consist of the following as of June 30, 2019 and June 30, 2018:

	As of June 30, 2019
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Money market funds	$	3,005,182	$	-	$	-		$	3,005,182
Other short term investments		749,988		-		(739	)		749,249
Other equities		3,421		-		(1,256	)		2,165
Total short-term investments	$	3,758,591	$	-	$	(1,995	)	$	3,756,596

	As of June 30, 2018
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Money market funds	$	180,138	$	-	$	-		$	180,138
USCI mutual fund investment		2,500,000		280,480		-			2,780,480
Hedged asset		523,100		-		(280,761	)		242,339
Other equities		1,577		-		(529	)		1,048
Total short-term investments	$	3,204,815	$	280,480	$	(281,290	)	$	3,204,005

F-16

The following tables summarize the valuation of the Company’s securities at June 30, 2019 and June 30, 2018 using the fair value hierarchy:

	As of June 30, 2019
	Total		Level 1		Level 2		Level 3
Money market funds	$	3,005,182	$	3,005,182	$	-	$	-
Other short term investments		749,249		749,249		-		-
Other equities		2,165		2,165		-		-
Total	$	3,756,596	$	3,756,596	$	-	$	-

	As of June 30, 2018
	Total		Level 1		Level 2		Level 3
Money market funds	$	180,138	$	180,138	$	-	$	-
Mutual fund investment		2,780,480		2,780,480		-		-
Hedge asset		242,339		-		242,339		-
Other equities		1,048		1,048		-		-
Total	$	3,204,005	$	2,961,666	$	242,339	$	-

During the years ended June 30, 2019 and 2018, there were no transfers between Level 1 and Level 2.

Restricted Cash

At June 30, 2019 and 2018, Gourmet Foods had on deposit approximately NZ$20,000 (approximately US$13,437 and US$13,536, respectively after currency translation) securing a lease bond for one of its properties. The cash securing the bond is restricted from access or withdrawal so long as the bond remains in place.

Long - Term Assets

Other long term assets totaling $523,607 and $532,165 at June 30, 2019 and June 30, 2018, respectively, were attributed to Wainwright and Original Sprout and consisted of

(i)	$500,000 as of June 30, 2019 and June 30, 2018 representing 10% equity investment in a registered investment adviser accounted for on a cost basis,
(ii)	and $23,607 as of June 30, 2019 and $32,165 at June 30, 2018 representing deposits and prepayments of rent.

NOTE 8.          GOODWILL

Goodwill represents the excess of the aggregate purchase price over the fair value of the net assets acquired in business combinations. The amounts recorded in goodwill for June 30, 2019 and 2018 were $915,790 and $915,790, respectively.

Goodwill is comprised of the following amounts:

	As of June 30, 2019		As of June 30, 2018
Goodwill – Original Sprout	$	416,817	$	416,817
Goodwill – Gourmet Foods		147,628		147,628
Goodwill - Brigadier		351,345		351,345
Total	$	915,790	$	915,790

The Company tests for goodwill impairment at each reporting unit. There was no goodwill impairment for the year ended June 30, 2019 or June 30, 2018.

F-17

NOTE 9.          ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consisted of the following:

	June 30, 2019		June 30, 2018
Accounts payable	$	1,720,902	$	1,935,645
Accrued interest		117,555		56,689
Taxes payable		181,563		3,938
Deferred rent		37,076		3,681
Accrued payroll, vacation and bonus payable		345,520		299,630
Accrued expenses		464,465		949,804
Total	$	2,867,081	$	3,249,387

NOTE 10.         RELATED PARTY TRANSACTIONS

Notes Payable - Related Parties

Current related party notes payable consist of the following:

	June 30, 2019		June 30, 2018
Notes payable to shareholder, interest rate of 8%, unsecured and payable on December 31, 2012 (past due)	$	3,500	$	3,500
Notes payable to shareholder, interest rate of 4%, unsecured and payable on May 25, 2022		250,000		250,000
Notes payable to shareholder, interest rate of 4%, unsecured and payable on April 8, 2022		350,000		350,000
	$	603,500	$	603,500

Interest expense for all related party notes for the years ended June 30, 2019 and 2018 was $24,280 and $24,280, respectively. 

Wainwright - Related Party Transactions

The Funds managed by USCF and USCF Advisers are deemed by management to be related parties. The Company’s Wainwright revenues, totaling $15.0 million and $18.7 million for the years ended June 30, 2019 and 2018, respectively, were earned from these related parties. Accounts receivable, totaling $1.0 million and $1.5 million as of June 30, 2019 and June 30, 2018, respectively, were owed from these related parties. Fund expense waivers, totaling $0.3 million and $0.7 million and fund expense limitation amounts, totaling $0.2 million and $0.5 million, for the years ended June 30, 2019 and 2018, respectively, were incurred on behalf of these related parties. Waivers payable, totaling $0.3 million and $0.7 million as of June 30, 2019 and June 30, 2018, respectively, were owed to these related parties. Fund expense waivers and fund expense limitation obligations are defined under Note 15 to the Consolidated Financial Statements.

NOTE 11.         EQUIPMENT LOANS

As of June 30, 2019, Brigadier had, in the aggregate, an outstanding principal balance of CD$114,292 (approx. US$87,297) related to new vehicle purchases. For each vehicle purchased, the loan principal together with interest is amortized over 60 equal monthly installments. The Consolidated Balance Sheets as of June 30, 2019 and June 30, 2018 reflect the amount of the principal balance which is due within twelve months as a current liability of US$26,241 and $46,705, respectively. Principal amounts under the loans which is due after twelve months are recorded in long term liabilities as US$61,057 and $149,491 for the years ended June 30, 2019 and 2018 respectively. Interest on the loans is expensed or accrued as it becomes due. Total interest on all vehicle loans for the year ended June 30, 2019 was US$5,197 and $12,662 for the year ended June 30, 2018.

F-18

NOTE 12.         BUSINESS COMBINATION

Acquisition of the assets of The Original Sprout, LLC

Kahnalytics, Inc., a wholly owned subsidiary of Concierge Technologies domiciled in California, was founded during May 2015 for the purpose of carrying on the residual business from the disposal of Concierge Technologies' former subsidiary, Wireless Village dba/Janus Cam. As that business segment slowly wound down over the ensuing two years, management began a search for another business opportunity for Kahnalytics. Accordingly, on December 18, 2017, Kahnalytics acquired all of the assets of The Original Sprout, LLC, a California limited liability company. Simultaneous with the acquisition, Kahnalytics registered a "doing business as" (or "dba") name of “Original Sprout” and transitioned its business to the manufacture, warehousing and wholesale distribution of non-toxic, all-natural, hair and skin care products under the brand name Original Sprout. The acquisition by Kahnalytics was financed through a non-interest bearing note from Concierge Technologies. The purchase price was approximately $3.5 million with payments to be made over the course of a twelve-month period and per the estimated allocation as depicted in the following table.

Item	Amount
Inventory	$	371,866
Accounts receivable		288,804
Furniture, fixtures and equipment		1,734
Pre-payments of inventory		8,775
Discount on installment payments**		64,176
Intangible assets*		2,330,000
Goodwill		416,817
Total Purchase Price	$	3,482,172

*See Note 6 for further detail of intangible assets acquired.

**This amount represents a discount on installment payments and was charged to interest expense.

On the closing date of the transaction, December 18, 2017, Kahnalytics paid $982,172 in cash towards the purchase price and deposited an additional $1,250,000 in an attorney-held client trust account which was released to the sellers, after downward adjustments due to changes in acquired accounts receivable, on May 18, 2018. The balance of the purchase price, after consideration for monthly installment payments, was paid in full on January 5, 2019. 

Supplemental Pro Forma Information (Unaudited)

The following unaudited supplemental pro forma information for the year ended June 30, 2018 assumes the acquisition of the Original Sprout LLC assets had occurred as of July 1, 2017, giving effect on a pro forma basis to purchase accounting adjustments such as depreciation of property and equipment, amortization of intangible assets, and acquisition related costs. The pro forma data is for information purposes only and may not necessarily reflect the actual results of operations had the assets of Original Sprout LLC been operated as part of the Company since July 1, 2017. Furthermore, the pro forma results do not intend to predict the future results of operations of the Company.

	Year Ended
	June 30, 2018
	Pro Forma(1)
Net Revenues	$	30,782,940
Net Income	$	2,044,203
Basic Earnings per Share	$	0.07
Diluted Earnings per Share	$	0.05

⁽¹⁾ Includes the operation of the assets acquired from Original Sprout LLC on a consolidated basis and the estimated transaction costs, amortization of intangible assets, and estimated income tax.

F-19

NOTE 13.         STOCKHOLDERS' EQUITY

Reverse Stock Split

On November 17, 2017, the Board of Directors (the “Board’) of the Company approved the implementation of a one-for-thirty (1:30) reverse stock split of all of the Company’s issued and outstanding common and preferred stock (the “Reverse Stock Split”).  The Reverse Stock Split became effective when trading opened on December 15, 2017. The Reverse Stock Split was previously approved by the Company’s shareholders pursuant to a majority written consent and by the Board pursuant to unanimous written consent on February 13, 2017. The approvals provided discretion to the Board to implement the Reverse Stock Split by the end of 2017.  The number of the Company’s authorized shares of common stock did not change. All figures have been presented on the basis of reverse split where ever applicable for all the periods presented in these financial statements.

Convertible Preferred Stock

Each issued Series B Voting, Convertible Preferred Stock is convertible into 20 shares of common stock and carries a vote of 20 shares of common stock in all matters brought before the shareholders for a vote. On February 7, 2019, the Company converted 383,919 shares of Series B Voting, Convertible Preferred Stock to 7,678,380 shares of common stock per the request of the shareholder and pursuant to the stock designation. After the conversion, there remain 53,032 shares of Series B Voting, Convertible Preferred Stock outstanding as of June 30, 2019.

Accumulated Other Comprehensive Income

The following table presents activity for the years ending June 30, 2019 and June 30, 2018:

Balance as of June 30, 2017	$	119,338
Change in short-term investment valuation before reclassification to earnings		329,629
Foreign currency translation (loss)		(214,284	)
Change in short-term investment valuation due to reclassification to earnings		(85,875	)
Balance as of June 30, 2018		148,808
Foreign currency translation (loss)		(44,516	)
Change in short-term investment valuation due to reclassification to earnings		(279,951	)
Balance as of June 30, 2019	$	(175,659	)

NOTE 14.         INCOME TAXES 

The following table summarizes income before income taxes:

	Years Ended June 30,
	2019		2018
U.S.	$	414,961	$	2,276,390
Foreign		193,902		224,892
Income before income taxes	$	608,863	$	2,501,282

Income Tax Provision 

Provision for income tax as listed on the Consolidated Statements of Operations for the years ended June 30, 2019 and 2018 are $347,014 and $766,596, respectively. 

Provision for taxes consisted of the following:

	Years Ended June 30,
	2019		2018
U.S. operations	$	183,025	$	658,293
Foreign operations		163,989		108,303
Total	$	347,014	$	766,596

F-20

Provisions for income tax consisted of the following as of the years ended:

For the year ended:	June 30, 2019			June 30, 2018
Current:
Federal	$	149,239		$	572,227
States		36,183			(510,765	)
Foreign		188,009			140,142
Total current		373,431			201,604
Deferred:
Federal		(10,572	)		502,364
States		8,175			94,467
Foreign		(24,020	)		(31,839	)
Total deferred		(26,417	)		564,992
Total	$	347,014		$	766,596

Tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets for the years ended June 30, 2019 and 2018 are presented below:

For the year ended:	June 30, 2019			June 30, 2018
Deferred tax assets:
Property and equipment and intangible assets - U.S.	$	619,483		$	745,420
Net operating loss		3,299			3,646
Capital loss carryover		167			10,337
Accruals, reserves and other - foreign		5,674			13,494
Accruals, reserves and other - U.S.		233,646			104,607
Gross deferred tax assets		862,269			877,504
Less valuation allowance		(2,573	)		(12,384	)
Total deferred tax assets	$	859,696		$	865,120
Deferred tax liabilities:
Intangible assets - foreign	$	(176,578	)	$	(208,419	)
Total deferred tax liabilities	$	(176,578	)	$	(208,419	)

F-21

The Company’s accounting for deferred taxes involves the evaluation of a number of factors concerning the realizability of the Company’s net deferred tax assets. The Company primarily considered such factors as the Company’s history of operating losses; the nature of the Company’s deferred tax assets and the timing, likelihood and amount, if any, of future taxable income during the periods in which those temporary differences and carryforwards become deductible.  At present, the Company does believe that it is more likely than not that the deferred tax assets will be realized, however, a partial valuation allowance was established for capital loss carryforwards. The valuation allowance decreased by $9,811 during the year ended June 30, 2019 and decreased by $16,693 during the year ended June 30, 2018.

On December 22, 2017, the Tax Cuts and Jobs Act (TCJA) was enacted into law, which significantly changes existing U.S. tax law and includes numerous provisions that affect our business, such as imposing a one-time transition tax on deemed repatriation of deferred foreign income, reducing the U.S. federal statutory tax rate, and adopting a territorial tax system. Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Act, we made reasonable estimates of the effects and recorded provisional amounts in our financial statements as of June 30, 2018. We are required to recognize the effect of the tax law changes in the period of enactment, such as determining the transition tax, re-measuring our U.S. deferred tax assets and liabilities as well as reassessing the net realizability of our deferred tax assets and liabilities. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118), which allowed us to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. As a result, we previously provided a provisional estimate of the effect of the Tax Act in our financial statements. In the fourth quarter of fiscal year 2019, we completed our analysis to determine the effect of the Tax Act and recorded immaterial adjustments as of June 30, 2019.

The TCJA reduced the U.S. federal statutory tax rate from 35% to 21% effective January 1, 2018. As a result, net deferred tax assets were re-measured, which resulted in a reduction of our deferred tax assets by approximately $504,905 for the tax year ended June 30, 2018.

Furthermore, the TCJA includes a provision to tax global intangible low-taxed income (“GILTI”) of foreign subsidiaries. The GILTI is broadly the excess income of foreign subsidiaries over a 10% rate of routine return on tangible business assets. The US taxable GILTI amount is subject to a 50% GILTI deduction allowance, with the new US federal corporate tax of 21%, the effective US tax rate on GILTI is 10.5%.  The GILTI is effective for taxable years of foreign corporation beginning after December 31, 2017. Due to the aggregated positive E&P of the foreign subsidiaries there is GILTI inclusion for 2018.

Income tax expense (benefit) for the years ended June 30, 2019 and June 30, 2018 differed from the amounts computed by applying the statutory federal income tax rate of 21.00% and 27.50%, respectively, to pretax income (loss) as a result of the following:

For the year ended:	June 30, 2019			June 30, 2018
Federal tax expense (benefit) at statutory rate	$	127,861		$	687,853
State income taxes		36,760			(437,242	)
Permanent differences		112,814			(46,251	)
Deferred tax impact of the Tax Act		-			504,905
U.S. toll charge (net of FTC)		-			1,112
Foreign tax credit		(43,930	)
Change in valuation allowance		(9,761	)		9,761
Foreign rate differential		123,270			46,458
Total tax expense	$	347,014		$	766,596

For the year ended:	June 30, 2019			June 30, 2018
	%			%
Federal tax expense (benefit) at statutory rate		21.00	%		27.50	%
State income taxes		6.04	%		(17.48	%)
Permanent differences		18.52	%		(1.85	%)
Deferred tax impact of the Tax Act		-			20.19	%
Foreign rate differential		20.25	%		1.86	%
U.S. toll charge (net of FTC)		-			0.04	%
Foreign tax credit		(7.22	%)		-
Change in valuation allowance		(1.60	%)		0.39	%
Total tax expense		56.99	%		30.65	%

F-22

Tax positions are evaluated in a two-step process. The Company first determines whether it is more likely than not that a tax position will be sustained upon examination. If a tax position meets the more-likely-than-not recognition threshold it is then measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The aggregate changes in the balance of gross unrecognized tax benefits, which includes interest and penalties, for the years ended June 30, 2019 and 2018 are as follows:

Balance at June 30, 2018	$	264,543
Additions based on tax positions taken during a prior period		12,597
Reductions based on tax positions taken during a prior period		-
Additions based on tax positions taken during the current period		-
Reductions based on tax positions taken during the current period		-
Reductions related to settlement of tax matters		-
Reductions related to a lapse of applicable statute of limitations		-
Balance at June 30, 2019	$	277,140

The Company files income tax returns in the United States, and various state and foreign jurisdictions. The federal, state and foreign income tax returns are subject to tax examinations for the tax years 2015 through 2018 as of year ended June 30, 2019. To the extent the Company has tax attribute carry forwards, the tax years in which the attribute was generated may still be adjusted upon examination by the U.S. Internal Revenue Service, state or foreign tax authorities to the extent utilized in a future period.  There were no ongoing examinations by taxing authorities as of June 30, 2019.

The Company had $251,946 of unrecognized tax benefits as of June 30, 2019 and $251,946 as of June 30, 2018 that if recognized would affect the effective tax rate.  The Company does not anticipate a significant change to its unrecognized tax benefits in the year ending June 30, 2019.

The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of June 30, 2019, and June 30, 2018, the Company accrued and recognized as a liability $25,194 and $12,597, respectively, of interest and penalties related to uncertain tax positions.  

NOTE 15.         COMMITMENTS AND CONTINGENCIES

Lease Commitments

The Company leases various facilities and offices throughout the world including the following subsidiary locations:

Gourmet Foods has operating leases for its office, factory and warehouse facilities located in Tauranga, New Zealand, as well as for certain equipment including vehicles. These leases are generally for three-year terms, with options to renew for additional three-year periods. The leases mature between September 2019 and September 2022, and require monthly rental payments of approximately US$11,561 translated to U.S. currency as of June 30, 2019.

Brigadier leases office and storage facilities as well as certain office equipment in Saskatoon and Regina, Saskatchewan. As of June 30, 2019, the Company had entered into an agreement to purchase its leased facility in Saskatoon effective July 1, 2019 (see Note 17-Subsequent Events). The minimum lease obligations for the Regina facility and office equipment require monthly payments of approximately US$2,725 translated to U.S. currency as of June 30, 2019.

Original Sprout currently leases office and warehouse space in San Clemente, CA under a three-year lease agreement expiring or renewing at March 1, 2021. Minimum monthly lease payments are approximately $7,837 with increases annually.

Wainwright leases office space in Walnut Creek, California under an operating lease which expires in December 2024. Minimum monthly lease payments are approximately $12,000 with increases annually.

For the years ended June 30, 2019 and 2018, the combined lease payments of the Company and its subsidiaries totaled $413,429 and $254,150, respectively.

Future minimum consolidated lease payments for Concierge and its subsidiaries are as follows:

Year Ended June 30,	Lease Amount
2020	$	412,025
2021		384,248
2022		243,412
2023		206,502
2024		109,958
2025		584
Total minimum lease commitment	$	1,356,729

F-23

Additionally, Gourmet Foods entered into a General Security Agreement in favor of the Gerald O’Leary Family Trust and registered on the Personal Property Securities Register for a priority sum of NZ$110,000 (approximately US$73,901) to secure the lease of its primary facility. In addition, a NZ$20,000 (approximately US$13,436) bond has been posted through ANZ Bank and secured with a cash deposit of equal amount to secure a separate facilities lease. The General Security Agreement and the cash deposit will remain until such time as the respective leases are satisfactorily terminated in accordance with their terms. Interest from the cash deposit securing the lease accumulates to the benefit of Gourmet Foods and is listed as a component of interest income/expense on the accompanying Consolidated Statements of Operations.

Other Agreements and Commitments 

USCF manages four funds (BNO, CPER, UGA, UNL) which have expense waivers provisions, whereby USCF will reimburse funds when fund expenditure levels exceed certain threshold amounts.As of June 30, 2019 and June 30, 2018 the expense waiver payable was $0.3 million and $0.7 million, respectively. USCF has no obligation to continue such payments for these four funds into subsequent periods.

USCF Advisers previously managed one mutual fund, the USCF Commodity Strategy Fund ("USCFX" and USCIX") until it was liquidated on March 21, 2019. Prior to liquidation, USCF Advisers had an expense waiver provision for the USCF Commodity Strategy Fund, whereby, USCF Advisers reimbursed the USCF Commodity Strategy Fund when fund expenditure levels exceeded a certain threshold amount.  The expense fee waiver terminated upon the liquidation of the fund on March 21, 2019. 

Litigation

From time to time, the Company is involved in legal proceedings arising mainly from the ordinary course of its business. Currently, there are no legal proceedings pending.

Retirement Plan

Wainwright's wholly owned subsidiary USCF, has a 401(k) Profit Sharing Plan covering its employees who are over 21 years of age and who have completed a minimum of 1,000 hours of service and have worked for USCF for one or more years. Participants may make contributions pursuant to a salary reduction agreement. In addition, USCF makes an safe harbor matching contribution. Quarterly profit sharing contributions paid totaled approximately $158 thousand and $95 thousand for each of the years ended June 30, 2019 and 2018, respectively.

NOTE 16.         SEGMENT REPORTING

With the acquisition of Wainwright Holdings, Gourmet Foods, Ltd., Brigadier, and the launch of the Original Sprout business unit of Kahnalytics, the Company has identified four segments for its products and services; U.S.A. investment fund management, U.S.A. beauty products, New Zealand food industry and Canada security alarm systems. Our reportable segments are business units located in different global regions. The Company’s operations in the U.S.A. include the manufacture and wholesale distribution of hair and skin care products by Original Sprout and the income derived from management of various investment funds by our subsidiary Wainwright. In New Zealand operations include the production, packaging and distribution on a commercial scale of gourmet meat pies and related bakery confections through our wholly owned subsidiary Gourmet Foods, Ltd. and in Canada we provide security alarm system installation and maintenance services to residential and commercial customers sold through our wholly owned subsidiary Brigadier. Separate management of each segment is required because each business unit is subject to different operational issues and strategies due to their particular regional location. The Company accounts for intra-company sales and expenses as if the sales or expenses were to third parties and eliminates them in the consolidation. Amounts are adjusted for currency translation as of the balance sheet date and presented in US dollars.

The following table presents a summary of identifiable assets as of June 30, 2019 and June 30, 2018:

	As of June 30, 2019		As of June 30, 2018
Identifiable assets:
Corporate headquarters	$	2,730,805	$	2,123,048
U.S.A. : fund management		10,878,549		13,563,773
U.S.A. : beauty products		3,780,278		3,739,979
New Zealand: food industry		1,838,800		1,959,486
Canada: security systems		2,025,176		1,714,863
Consolidated	$	21,253,608	$	23,101,149

F-24

The following table presents a summary of operating information for the years ended June 30, 2019 and June 30, 2018:

	Year Ended June 30, 2019			Year Ended June 30, 2018
Revenues:
U.S.A. : beauty products	$	3,621,246		$	1,694,534
U.S.A. : investment fund management		15,021,439			18,744,313
New Zealand : food industry		4,747,358			4,968,158
Canada : security systems		3,558,580			3,303,584
Consolidated	$	26,948,623		$	28,710,589
Net income (loss) after taxes:
Corporate headquarters	$	(1,223,930	)	$	(744,992	)
U.S.A. : beauty products		406,963			42,702
U.S.A. : investment fund management		687,755			1,950,711
New Zealand : food industry		(13,326	)		99,398
Canada : security systems		404,387			386,867
Consolidated	$	261,849		$	1,734,686

The following table presents a summary of net capital expenditures for the year ended June 30:

	2019			2018
Capital expenditures:
U.S.A. : corporate headquarters	$	-		$	495
U.S.A. : beauty products		5,501			2,707
U.S.A.: investment fund management		-			-
New Zealand: food industry		48,856			165,414
Canada: security systems		(4,192	)		149,449
Consolidated	$	50,165		$	318,065

The following table represents property, plant and equipment in use at each of the Company's locations as of June 30:

	2019			2018
Asset Location:
U.S.A. : corporate headquarters	$	14,305		$	14,305
U.S.A. : beauty products		10,745			5,244
U.S.A.: investment fund management		-			-
New Zealand: food industry		1,659,186			1,627,545
Canada: security systems		348,435			363,833
Total All Locations		2,032,671			2,010,927
Less accumulated depreciation		(1,275,657	)		(930,456	)
Net property, plant and equipment	$	757,014		$	1,080,471

F-25

NOTE 17.     SUBSEQUENT EVENTS 

The Company evaluated subsequent events for recognition and disclosure through the date the financial statements were issued or filed. Nothing has occurred outside normal operations since that required recognition or disclosure in these financial statements other than the items noted below.

On July 2, 2019, Brigadier finalized the purchase of its office facility and land located in Saskatoon for CAN$750,000 (approximately US$572,858), funded by a bank loan of CAN$525,000 (approximately US$401,000) and CAN$225,000 (approximately US$171,858) in cash. The bank loan matures in 5 years and bears interest at the annual rate of 4.14%.

On June 24, 2019, Gourmet Foods, entered into an agreement to purchase the assets of Maketu Pies subject to, among other things, completion of due diligence. However, after completion of due diligence, the agreement was terminated by Gourmet Foods pursuant to its terms on July 31, 2019. (reference Form 8-K filed on June 27, 2019 and August 2, 2019)

USCF Advisers implemented fee waivers for all three of its exchange-traded funds ("ETFs") effective August 15, 2019: the USCF SummerHaven Dynamic Commodity Strategy No K-1 Fund ("SDCI"), the USCF SummerHaven SHPEI Index Fund ("BUY") and the he USCF SummerHaven SHPEN Index Fund ("BUYN").  The fee waivers for the three ETFs will remain in effect through October 31, 2020 and may be renewed in the future with approval from the Funds Board of Trustees of USCF ETF Trust.

On August 15, 2019, the Company entered into a letter of engagement with Maxim Group LLC ("Maxim") who is to provide investment banking services. In connection with the fee arrangement for services to be provided, the Company issued to Maxim 175,000 shares of its unregistered common stock.

F-26

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

There were no disagreements or disputes with our independent accountants.

ITEM 9A. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

The Company carried out an evaluation, under the supervision and with the participation of the Company's management, including the Company's Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures, as required by Exchange Act Rule 13a-15, as of the end of the period covered by this report. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective as of June 30, 2019 (the end of the period covered by this annual report) and provided reasonable assurances that the information the Company is required to disclose in the reports it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time period required by the Commission's rules and forms. Further, the Company’s management, including the Company's chief Executive Officer and Chief Financial Officer, concluded that its disclosure controls and procedures are also effective to ensure that information required to be disclosed in the reports that it files or submits under the Exchange Act is accumulated and communicated to its management, including its chief executive officer and chief financial officer, to allow timely decisions regarding required disclosure. 

Internal Control Over Financial Reporting

Management’s report on internal control over financial reporting. Our management recognizes its responsibility for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934. Currently, the primary responsibility of the registrant is providing oversight control over its subsidiary operations which, in turn, are managed by their respective boards of directors who are appointed by the registrant for each of the subsidiaries. All debit and credit transactions with the company’s bank accounts, including those of the subsidiary companies, are reviewed by the officers as well as all communications with the company’s creditors. The directors of the subsidiary companies, which include representatives of the Company, meet frequently – as often as weekly – to discuss and review the financial status of the company and all developments. All filings of reports with the Commission are reviewed before filing by all directors.

Our internal control over financial reporting is a process designed by, or under the supervision of, our chief executive officer and chief financial officer, or persons performing similar functions, and effected by our board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America ("GAAP").  Our internal control over financial reporting includes those policies and procedures that: (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and disposition of the assets of the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP and that receipts and expenditures of the Company are being made only in accordance with authorization of management and directors of the Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial statements.

Management assessed the effectiveness of the Company’s internal control over financial reporting at the end of its most recent fiscal year, June 30, 2019. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in the 2013 Internal Control-Integrated Framework. Based on its evaluation, management has concluded that the Company’s internal control over financial reporting was effective as of June 30, 2019.

Pursuant to Regulation S-K Item 308(b), this Annual Report on Form 10-K does not include an attestation report of our Company’s registered public accounting firm regarding internal control over financial reporting.

Changes in Internal Control and Financial Reporting

There have been no changes in our internal control over financial reporting during the fiscal year ended June 30, 2019, which were identified in connection with our management’s evaluation required by paragraph (d) of rules 13a-15 and 15d-15 under the Act, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

ITEM 9B. OTHER INFORMATION

Not applicable.

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PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE

Set forth below are the names, and terms of office of each of our directors, executive officers and significant employees at June 30, 2019, and a description of the business experience of each.

Person	Age	Offices	Office Held Since	Term of Office
Scott Schoenberger	53	Director	2015	2019
Nicholas D. Gerber	57	Chief Executive Officer / Chairman and Director	2015	2019
David W. Neibert	64	Chief Operations Officer and Secretary	2002	2019
Matt Gonzalez	55	Director	2013	2019
Stuart P. Crumbaugh	56	Chief Financial Officer	2017	2019
Kathryn D. Rooney	47	Director / Chief Communications Officer	2017	2019
Derek Mullins	46	Director	2017	2019
Kelly J. Anderson	51	Director	2019	2019
Joya Delgado Harris	46	Director	2017	2019
Erin Grogan	45	Director	2017	2019

Nicholas D. Gerber: Mr. Gerber has served as the President, Chief Executive Officer and Chairman of the Board of Concierge Technologies, Inc. (“Concierge”) since January 2015. Mr. Gerber has also been the Chairman of the Board of Directors of United States Commodity Funds, LLC (“USCF”), since June 2005 and served as its President and Chief Executive Officer from June 2005 through May 15, 2015 and Vice President since May 15, 2015. USCF serves as the General Partner and Manager to several related public funds. Mr. Gerber co-founded USCF in 2005 and prior to that, he co-founded Ameristock Corporation in March 1995, a California-based investment adviser registered under the Investment Advisers Act of 1940 from March 1995 until January 2013. Mr. Gerber has also served as Vice President/Chief Investment Officer of Lyon’s Gate Reinsurance Company, Ltd. from June 2003 to 2009. From August 1995 to January 2013, Mr. Gerber served as Portfolio Manager of Ameristock Mutual Fund, Inc. On January 11, 2013, the Ameristock Mutual Fund, Inc. merged with and into the Drexel Hamilton Centre American Equity Fund, a series of Drexel Hamilton Mutual Funds. Drexel Hamilton Mutual Funds is not affiliated with Ameristock Corporation, the Ameristock Mutual Fund, Inc., or USCF. Mr. Gerber has also served on the USCF Advisers LLC (“USCF Advisers”) Board of Managers from June 2013 to present, as the President from June 2013 through June 18, 2015, and as Vice President from June 18, 2015 to present. USCF Advisers, an affiliate of USCF, is an investment adviser registered under the Investment Advisers Act of 1940, and, since February 2017, is registered as a commodity pool operator, NFA member and swap firm. He also has served as Chairman of the Boards of Trustees of USCF ETF Trust since 2014 and USCF Mutual Funds Trust since October 2016, respectively, (USCF ETF Trust and together with USCF Mutual Funds Trust are referred to as the “Trusts”) and each of the Trusts are investment companies registered under the Investment Company Act of 1940, as amended. In addition, Mr. Gerber served as the President and Chief Executive Officer of USCF ETF Trust from June 2014 until December 2015. In these roles, Mr. Gerber has gained extensive experience in evaluating and retaining third-party service providers, including custodians, accountants, transfer agents, and distributors. Mr. Gerber has been a principal of USCF listed with the CFTC and NFA since November 2005, an NFA associate member and associated person of USCF since December 2005 and a Branch Manager of USCF since May 2009. Additionally, effective as of January 2017, he is listed as a principal of USCF Advisers with the CFTC and NFA and, effective as of February 2017, he is also an NFA associated person, swap associated person, and a Branch Manager of USCF Advisers. Mr. Gerber earned an M.B.A. degree in finance from the University of San Francisco, a B.A. from Skidmore College and holds an NFA Series 3 registration.

Scott Schoenberger: Mr. Schoenberger has served on the Board of Concierge since January 2015. Mr. Schoenberger is the owner and Chief Executive Officer of KAS Engineering, a second-generation plastic injection molding firm based in multiple southern CA locations. He also is the owner and Chief Executive Officer of Nica Products, another manufacturing company based in Orange County, CA. Mr. Schoenberger has over 30 years of business experience in manufacturing and technology. He has been involved with several startups as a consultant and/or angel level investor in such industries as medical, technology, consumer products, electronics, automotive, and securities industries. A California native, he has a B.S. in Environmental Studies from the University of California, Santa Barbara.

David W. Neibert:  Mr. Neibert has been a Director of Concierge since June 2002. Mr. Neibert previously served as Chief Executive Officer of Concierge from April 2007 through January 2015, then Chief Financial Officer from February 2015 through October 2017, and from November 2017 to present, Mr. Neibert has served as the Chief Operating Officer. Concurrently with his service and tenure at Concierge, Mr. Neibert has continuously served as President of Kahnalytics, Inc. since May 2015, nka Original Sprout; Director and Chief Financial Officer of Gourmet Foods Ltd. since August 2015 and Director for Brigadier Security Systems since June 2016. As Concierge’s Chief Operations Officer, Mr. Neibert is responsible for long range planning, growth and ensuring profitable operations of Concierge’s subsidiaries including, but not limited to, the selection and retention of their respective management teams, accounting practices and processes in accordance with U.S. GAAP. Mr. Neibert is also responsible for the primary due diligence efforts, contract negotiations, and on-boarding of new subsidiary acquisitions for Concierge. Prior to joining Concierge, Mr. Neibert served as President of Roamer One and as a Director and Executive Vice President of Business Development of their publicly traded parent company Intek Global Corporation, a global distributor of radio products. Mr. Neibert attended the University of California Los Angeles from 1973-1978 with a focus on business management and developmental psychology.

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Matt Gonzalez: Mr. Gonzalez has served as a Director of Concierge since 2013.  He is an accomplished attorney with experience handling both civil and criminal matters in both state and federal courts. Since early 2011 he has served as the Chief Attorney of the San Francisco Public Defender's Office where he oversees an office of over 100 trial lawyers. He previously served as an elected member of the San Francisco Board of Supervisors from 2001-2005, and served as the president of the body from 2003-2005. Mr. Gonzalez is a partner at Gonzalez & Kim, a California partnership with multiple business holdings in the transportation sector. He is a co-owner of Flywheel Taxi (formerly DeSoto Taxi) in San Francisco. He joined Concierge as an investor in 2010 before becoming its Director in 2013. Mr. Gonzalez earned his B.A. from Columbia University and his Juris Doctor from Stanford Law School.

Erin Grogan: Ms. Grogan has served as Director of Concierge since 2017.  Ms. Grogan serves as the Chief Financial Officer of the Association for California School Administrators. Previously, Ms. Grogan served as head of Finance and Operations at YouCaring, a fundraising platform for personal and charitable causes, until it was acquired by GoFundMe. Prior to joining YouCaring, Ms. Grogan was the Director of Finance and Planning as well as an adjunct faculty member at the University of San Francisco, School of Management, from 2012 until 2016. Ms. Grogan has over 20 years of experience in management and finance, including positions at ON24, Inc., Mooreland Partners, Cadbury Schweppes, Asbury Automotive Group, Banc of America Securities, PricewaterhouseCoopers, and American International Group. Ms. Grogan earned her B.A. from Columbia University and an M.B.A. in finance from the New York University Leonard N. Stern School of Business. 

Derek Mullins: Mr. Mullins has served as Director of Concierge since 2017 and currently serves as Co-Founder and Managing Partner of PINE Advisor Solutions. Previously he was the Director of Operations at ArrowMark Colorado Holdings LLC and the Chief Financial Officer and Treasurer of Meridian Fund, Inc. and Destra Investment Trust. Mr. Mullins also served as Director of Operations at Black Creek Capital and Dividend Capital from 2004 to 2009 and as Manager of Fund Administration at ALPS Fund Services from 1996 to 2004. Mr. Mullins brings over 20 years of operations, accounting, finance and compliance experience to the Board. Mr. Mullins earned a B.S. in Finance from the University of Colorado, Boulder and a Master’s degree in Finance from the University of Colorado, Denver.

Kathryn D. Rooney: Ms. Rooney has served as Director of Concierge and as the Company’s Chief Communications Officer since January 2017.  Ms. Rooney also serves as the Chief Marketing Officer of USCF and brings over 20 years of experience in marketing and investor relations. Ms. Rooney is responsible for marketing, brand management for Concierge and USCF and overall product distribution for USCF. Prior to joining USCF and Concierge, Ms. Rooney was Director of Business Development for the Ameristock Mutual Fund. She also served as National Sales Director for ALPS Mutual Fund Services and as a Trust Officer for Fifth Third Bank. Ms. Rooney received her B.A. in Economics and Psychology with a minor in Art History from Wellesley College. Ms. Rooney is a registered representative of ALPS Distributors, Inc.

Joya Delgado Harris: Ms. Harris has served as Director of Concierge since 2017.  She has been the Director of Research Integration for the American Cancer Society since 2012. In this role she provides oversight and management of the integration of Extramural Grants Department research and training program outcomes into enterprise-wide organization and mission objectives. Before joining the American Cancer Society, Ms. Harris worked for Y-ME National Breast Cancer Organization. From 2008 to 2011, Ms. Harris has over a decade of experience in non-profit management, previously serving as the Executive Director for the Association of Village PRIDE and as the Director of Product Development for the Metropolitan Atlanta Chapter of the American Red Cross. Her experience and demonstrated accomplishments in key leadership functions including program development, implementation, and evaluation; curriculum design; grant-writing and resource development; meeting planning; board cultivation and management; and developing business partnerships. Ms. Harris has also served as a Consumer Peer Reviewer for the Congressionally Directed Medical Research Programs (CDMRP), administered by the Department of Defense, sitting alongside scientists to review and evaluate innovative breast cancer research grant proposals. Ms. Harris earned a B.A. from Wellesley College, and received a Masters of Public Health degree with concentration in public health policy and management from the Rollins School of Public Health of Emory University. She serves as the immediate Past President of the Atlanta Wellesley Club.

Kelly J. Anderson: Ms. Anderson has been a Director since May 2019. Ms. Anderson has over 35 years of experience in finance, accounting and operations roles in various industries.  Since 2015, Ms. Anderson has been a managing partner in C Suite Financial Partners, a financial consulting services company dedicated to serving private, public, private equity, entrepreneurial, family office and government-owned firms in all industries. Between July 2014 and March 2015, Ms. Anderson was CFO of Mavenlink, a SaaS company. Between October 2012 and January 2014, Ms. Anderson was Chief Accounting Officer of Fisker Automotive. Between April 2010 and February 2012, Ms. Anderson was the President and Chief Financial Officer of T3 Motion, Inc., (“T3”), an electric vehicle technology company. Between March 2008 and April 2010, she served as T3’s Executive Vice President and Chief Financial Officer, and as a director from January 2009 until January 2010. From 2006 until 2008, Ms. Anderson was Vice President at Experian, a leading credit reporting agency. From 2004 until 2006, Ms. Anderson was Chief Accounting Officer for TripleNet Properties and its affiliates. From 1996 to 2004, Ms. Anderson held senior financial positions with The First American Corp., a Fortune 500 title insurance company. Ms. Anderson has served on the board of directors for Tomi Environmental Services (OCTQB: TOMZ) since 2016. Ms. Anderson is a CPA (Inactive). Ms. Anderson holds a B.A. degree in Business Administration with an accounting concentration from California State University Fullerton

Stuart P. Crumbaugh: Mr. Crumbaugh has served as the Chief Financial Officer of Concierge Technologies, Inc., the parent of Wainwright Holdings, Inc. (“Wainwright”) and its subsidiaries since December 2017, and also the Chief Financial Officer, Secretary and Treasurer of USCF, a subsidiary of Wainwright, since May 2015. In addition, Mr. Crumbaugh has served as a Director of Wainwright, the parent and sole member of USCF, since December 2016. Mr. Crumbaugh has been a principal of USCF listed with the CFTC and NFA since July 1, 2015 and, as of January 2017, he is a principal of USCF Advisers LLC. USCF Advisers LLC, an affiliate of USCF, is an investment adviser registered under the Investment Advisers Act of 1940, and, as of February 2017, is registered as a commodity pool operator, NFA member and swap firm. Since June 2015, Mr. Crumbaugh has been the Treasurer and Secretary of USCF Advisers LLC. He also serves as a Management Trustee of USCF ETF Trust from May 2015 to present and as Management Trustee of the USCF Mutual Funds Trust from October 2016 to present. Mr. Crumbaugh joined USCF as the Assistant Chief Financial Officer on April 6, 2015. Prior to joining USCF, Mr. Crumbaugh was the Vice President Finance and Chief Financial Officer of Sikka Software Corporation, a software service healthcare company providing optimization software and data solutions from April 2014 to April 6, 2015. Mr. Crumbaugh served as a consultant providing technical accounting, IPO readiness and M&A consulting services to various early stage companies with the Connor Group, a technical accounting consulting firm, for the periods of January 2014 through March 2014; October 2012 through November 2012; and January 2011 through February 2011. From December 2012 through December 2013, Mr. Crumbaugh was Vice President, Corporate Controller and Treasurer of Auction.com, LLC, a residential and commercial real estate online auction company. From March 2011 through September 2012, Mr. Crumbaugh was Chief Financial Officer of IP Infusion Inc., a technology company providing network routing and switching software enabling software-defined networking solutions for major mobile carriers and network infrastructure providers. Mr. Crumbaugh earned a B.A. in Accounting and Business Administration from Michigan State University in 1987 and is a Certified Public Accountant – Michigan (inactive).

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Conflicts of Interest. Our officers and directors who are not employees of our subsidiary company will not devote more than a portion of their time to our affairs. There will be occasions when the time requirements of Concierge's business conflict with the demands of their other business and investment activities. Such conflicts may require that we attempt to employ additional personnel. There is no assurance that the services of such persons will be available or that they can be obtained upon terms favorable to the company.

Our officers and directors may be directors or principal shareholders of other companies and, therefore, could face conflicts of interest with respect to potential acquisitions. In addition, our officers and directors may in the future participate in business ventures, which could be deemed to compete directly with Concierge. Additional conflicts of interest and non-arm's length transactions may also arise in the future in the event our officers or directors are involved in the management of any firm with which we transact business. In addition, if Concierge and other companies with which our officers and directors are affiliated both desire to take advantage of a potential business opportunity, then our board of directors has agreed that said opportunity should be available to each such company in the order in which such companies registered or became current in the filing of annual reports under the '34 Act.

Our officers and directors may actively negotiate or otherwise consent to the purchase of a portion of their common stock as a condition to, or in connection with, a proposed merger or acquisition transaction. It is anticipated that a substantial premium over the initial cost of such shares may be paid by the purchaser in conjunction with any sale of shares by our officers and directors which is made as a condition to, or in connection with, a proposed merger or acquisition transaction. The fact that a substantial premium may be paid to our officers and directors to acquire their shares creates a potential conflict of interest for them in satisfying their fiduciary duties to us and our other shareholders. Even though such a sale could result in a substantial profit to them, they would be legally required to make the decision based upon the best interests of Concierge and Concierge’s other shareholders, rather than their own personal pecuniary benefit.

No executive officer, director, person nominated to become a director, promoter or control person of Concierge has been involved in legal proceedings during the last five years such as

● Bankruptcy

● Criminal proceedings (excluding traffic violations and other minor offenses), or

● Proceedings permanently or temporarily enjoining, barring, suspending or otherwise limiting his/her involvement in any type of business, securities or banking activities.

● Nor has any such person been found by a court of competent jurisdiction in a civil action, or the Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law.

None of the directors holds any directorships in any company with a class of securities registered under the Exchange Act or subject to the reporting requirements of section 15(d) of such Act or any company registered as an investment company under the Investment Company Act of 1940 other than the following: Nicholas Gerber, our CEO and member of our Board of Directors, is a director of United Sates Commodity Funds LLC which is the commodity pool operator and general partner or sponsor of 11 commodity based exchange traded products that are registered under Section 12 of the Exchange Act, and is also a director of USCF ETF Trust, a registered investment company under the Investment Company Act of 1940, which currently has one exchange traded fund and is advised by USCF Advisers LLC, a registered investment adviser.

Involvement in certain legal proceedings. During the past five years, none of the directors has been involved in any of the following events:

● A petition under the Federal bankruptcy law or any state insolvency law was filed by or against, or a receiver, fiscal agent or similar officer was appointed by a court for the business or property of such person, or any partnership in which he was a general partner at or within two years before the time of such filing, or any corporation or business association of which he was an executive officer at or within two years before the time of such filing;

● Such person was convicted in a criminal proceeding or is a named subject of a pending criminal proceeding (excluding traffic violations and other minor offenses);

● Such person was the subject of any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining him from, or otherwise limiting, the following activities:

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● Other than Nicholas Gerber, through his involvement as a director of United Sates Commodity Funds LLC which is the commodity pool operator and general partner or sponsor of 13 commodity based exchange traded products that are registered under Section 12 of the Exchange Act, and as a director of USCF ETF Trust, a registered investment company under the Investment Company Act of 1940, which currently has one exchange traded fund and is advised by USCF Advisers LLC, a registered investment adviser, acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage transaction merchant, any other person regulated by the Commodity Futures Trading Commission, or an associated person of any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person, director or employee of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct or practice in connection with such activity;

● Engaging in any type of business practice; or

● Engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of Federal or State securities laws or Federal commodities laws;

● Such person was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any Federal or State authority barring, suspending or otherwise limiting for more than 60 days the right of such person to engage in any activity described in paragraph (f)(3)(i) of this section, or to be associated with persons engaged in any such activity; or

● Such person was found by a court of competent jurisdiction in a civil action or by the Commission to have violated any Federal or State securities law, and the judgment in such civil action or finding by the Commission has not been subsequently reversed, suspended, or vacated.

● Such person was found by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated any Federal commodities law, and the judgment in such civil action or finding by the Commodity Future Trading Commission has not been subsequently reversed, suspended or vacated.

Code of Ethics. We have adopted a Code of Ethics that applies to our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. A copy of the Code of Ethics was filed as an exhibit to our Form 10-K Annual Report for the year ended June 30, 2018.  See, "ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, Exhibit Number 14.1."  We undertake to provide to any person without charge, upon request, a copy of such code of ethics. Such a request may be made by writing to the Company at its address at 1202 Puerta Del Sol, San Clemente, California 92673.

Corporate Governance.

Security holder recommendations of candidates for the board of directors. Any shareholder may recommend candidates for the board of directors by writing to the president of our company the name or names of candidates, their home and business addresses and telephone numbers, their ages, and their business experience during at least the last five years. The recommendation must be received by the company by March 9 of any year or, alternatively, at least 60 days before any announced shareholder annual meeting.

Audit committee. We have no standing audit committee. Our directors perform the functions of an audit committee. Our directors have access to consultants that can provide such expertise when such is needed.

Compliance with Section 16(a) of the Securities Exchange Act.

Based solely upon a review of Forms 3 and 4 furnished to the company under Rule 16a-3(e) of the Act during its most recent fiscal year and Forms 5 furnished to us with respect to our most recent fiscal year and any written representations received by us from persons required to file such forms, the following persons – either officers, directors or beneficial owners of more than ten percent of any class of equity of Concierge registered pursuant to Section 12 of the Act – failed to file on a timely basis reports required by Section 16(a) of the Act during the most recent fiscal year or prior fiscal years:

Name	No. of Late Reports		No. of Transactions Not Timely Reported		No. of Failures to File a Required Report
-		0		0		0

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ITEM 11.         EXECUTIVE COMPENSATION

SUMMARY COMPENSATION TABLE

The following table sets forth the compensation paid to our executive officers for the fiscal years ended June 30, 2019 and 2018. Unless otherwise specified, the term of each executive officer is that as set forth under that section entitled, “Directors, Executive Officers, Promoters and Control Persons -- Term of Office”.

Name and Principal Position

Year Ended June 30,

Salary ($)

Bonus ($)

Stock Awards ($)

Option Awards ($)

Non-Equity Incentive Plan Compensation

Nonqualified Deferred Compensation Earnings

All Other Compensation ($)

Total ($)

David W. Neibert

2018

169,500

Nil

Nil

Nil

Nil

Nil

53,834

223,334

Chief Operations Officer(1)

2019

200,000

25,000

Nil

Nil

Nil

Nil

Nil

225,000

Nicholas D. Gerber(2)

2018

400,000

Nil

Nil

Nil

Nil

Nil

Nil

400,000

Chief Executive Officer

2019

400,000

Nil

Nil

Nil

Nil

Nil

Nil

400,000

John P. Love (3)

2018

406,250

67,000

Nil

Nil

Nil

Nil

Nil

473,250

Chief Executive Officer - USCF

2019

450,000

37,500

Nil

Nil

Nil

Nil

Nil

487,500

Stuart P. Crumbaugh (4)

2018

272,500

46,000

Nil

Nil

Nil

Nil

Nil

318,500

Chief Financial Officer

2019

286,000

28,600

Nil

Nil

Nil

Nil

Nil

314,600

⁽¹⁾ Mr. Neibert was also reimbursed approximately $34,426 for health insurance premiums making his total $259,426 for 2019.

⁽²⁾ USCF pays Mr. Gerber a salary of $400,000.

⁽³⁾ USCF pays Mr. Love a salary of $450,000 per year which increased from $400,000 per year effective May 2018.

⁽⁴⁾ USCF pays Mr. Crumbaugh a salary of $286,000 per year which increased from $272,500 per year effective April 2018.

OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END

There were no unexercised stock options, stock that has not vested, or equity incentive plan awards for any named officer outstanding at the end of the last fiscal year.

Compensation of Directors

The following compensation was paid to our directors for their services as directors for the fiscal year ended June 30, 2019. Only our independent directors receive compensation. Independent directors receive an annual retainer, paid quarterly, plus reimbursement for approved Board meeting travel and related out-of-pocket expenses.

DIRECTOR COMPENSATION

Name	Fees Earned or Paid in Cash ($)	Stock Awards ($)	Option Awards ($)	Non-Equity Incentive Plan Compensation ($)	Nonqualified Deferred Compensation Earnings ($)	All Other Compensation ($)	Total ($)
David W. Neibert	0	0	0	0	0	0	0
Nicholas D. Gerber	0	0	0	0	0	0	0
Scott Schoenberger	0	0	0	0	0	0	0
Matt Gonzalez	10,000	0	0	0	0	0	10,000
Erin Grogan	10,000	0	0	0	0	0	10,000
Kathryn D. Rooney	0	0	0	0	0	0	0
Derek Mullins	10,000	0	0	0	0	0	10,000
Kelly J. Anderson	4,167	0	0	0	0	0	4,167
Joya Delgado Harris	10,000	0	0	0	0	0	10,000

Stock Options.

During the last two fiscal years, our officers and directors have received no Stock Options and no stock options are outstanding.

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Equity Compensation Plans.

We have no equity compensation plans.

ITEM 12.          SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The following table sets forth information as of September 27, 2019, with respect to the beneficial ownership (as defined in Rule 13d-3 of the Exchange Act) of the Company’s common stock by (1) each director of the Company, (2) the named Executive Officers of the Company, (3) each person or group of persons known by the Company to be the beneficial owner of greater than 5% of the Company’s outstanding common stock, and (4) all directors and officers of the Company as a group:

Name and Address of Beneficial Owner	Amount Owned			Percent of Class (5)
Gonzalez & Kim 1202 Puerta Del Sol San Clemente CA 92673		233,400	(1)		.61	%
Nicholas D. Gerber 1202 Puerta Del Sol San Clemente CA 92673		18,130,015	(2)		47.12	%
David W. Neibert 1202 Puerta Del Sol San Clemente CA 92673		36,248	(3)		0.09	%
Scott Schoenberger 1202 Puerta Del Sol San Clemente CA 92673		4,697,993	(4)		12.21	%
Kathryn D. Rooney 1202 Puerta Del Sol San Clemente CA 92673		-			-	%
Derek Mullins 1202 Puerta Del Sol San Clemente CA 92673		-			-	%
Erin Grogan 1202 Puerta Del Sol San Clemente CA 92673		-			-	%
Kelly J. Anderson 1202 Puerta Del Sol San Clemente CA 92673		-			-	%
Joya Harris 1202 Puerta Del Sol San Clemente CA 92673		-			-	%
Stuart P. Crumbaugh 1202 Puerta Del Sol San Clemente CA 92673		-			-	%
Officers and Directors as a Group		23,097,656	(5)		60.03	%
Eliot and Sheila Gerber		3,543,603			9.21	%
Gerber Family Trust		5,623,543			14.62	%

(1)	Mr. Gonzalez is a member of the Board of the Company. Mr. Gonzalez and Mr. Hansu Kim are 50% partners and share voting and dispositive power in Gonzalez & Kim, a California general partnership, which holds 11,670 shares of Series B Preferred Stock (which after giving effect to their conversion would total 233,400 shares of Common Stock) constituting 0.61% of the outstanding shares of Common Stock which percentage is based on 38,473,159 outstanding shares of Common Stock (giving effect to the conversion of all Series B Preferred Stock).
(2)	Mr. Gerber is the President and Chief Executive Officer of the Company and Chairman of the Board. Mr. Gerber’s shares are held by the Nicholas and Melinda Gerber Living Trust (the “Gerber Trust”) and Mr. and Mrs. Gerber serve as trustees of the Gerber Trust, which owns a total 18,130,015 shares, representing 47.12% of the outstanding shares of Common Stock (giving effect to the conversion of all Series B Preferred Stock). As such, the Gerber Trust and Mr. Gerber share power to vote or to direct the vote of the shares and share power to dispose or to direct the disposition of these shares.
(3)	Mr. Neibert is the Chief Operations Officer of the Company and a member of the Board. Mr. Neibert owns an aggregate 36,248 shares. Mr. Neibert’s total beneficial ownership constitutes 0.09% of the outstanding shares of Common Stock which percentage is based on 38,473,159 outstanding shares of Common Stock (giving effect to the conversion of all Series B Preferred Stock).
(4)	Mr. Schoenberger is a member of the Board of the Company. Mr. Schoenberger’s shares are held by the Schoenberger Family Trust (the “Schoenberger Trust”) and Mr. Schoenberger serves as sole trustee of the Schoenberger Trust, and total 4,697,993 shares, representing 12.21% of the outstanding shares of Common Stock which percentage is based on 38,473,159 outstanding shares of Common Stock (giving effect to the conversion of all Series B Preferred Stock). As such, the Schoenberger Trust and Mr. Schoenberger share power to vote or to direct the vote of the shares and share power to dispose or to direct the disposition of these shares.
(5)	The percentage of class is calculated pursuant to Rule 13d-3(d) of the Exchange Act which percentages are calculated on the basis of the amount of outstanding securities, plus securities deemed outstanding pursuant to Rule 13d-3(d)(1). The percentage of common stock outstanding is as of September 24, 2019, and based upon 37,412,519 shares of common outstanding and 53,032 shares of Series B Preferred Stock, giving effect to the conversion of all Series B Preferred Stock at a ratio of 20:1, for a total issued and outstanding amount of 38,473,159 shares.

29

Upon acquiring their shares of Voting Stock, Messrs. Gerber and Schoenberger have voted all shares of Voting Stock concurringly on matters submitted to the Company’s stockholders. Pursuant to a voting agreement, (the “Voting Agreement”), the Gerber Trust and Schoenberger Trust will continue to vote all shares of Voting Stock owned by them to elect each of Messrs. Gerber and Schoenberger to the Board along with other designees mutually agreed upon. By virtue of the Voting Agreement, Messrs. Gerber and Schoenberger will represent 22,828,008, or 59.33% of the Voting Stock when voting on director nominees.

ITEM 13.          CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Director Independence

For purposes of determining director independence, we have applied the definitions set out in Section 803 of the NYSE American Company Guide. The OTCQB on which our shares of common stock are quoted does not have any director independence requirements. The NYSE American definition of “Independent Director” means a person other than an Executive Officer or employee of the Company or any other individual having a relationship which, in the opinion of the Company's Board of Directors, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director.

The Board does not currently have any standing committees. The Board will review the appropriateness of forming standing audit, nominating, corporate governance and compensation committees in light of the Company’s growth and will form such standing or ad hoc committees as the Board deems appropriate.

Related Party Transactions

During our last fiscal year, we did not enter into any transactions with related persons, promoters or certain control persons as covered by Item 404 of Regulation S-K. However, in connection with that certain Securities Purchase Agreement with Nicholas Gerber and Scott Schoenberger, certain now current executive officers and directors may have formed a “group” under Section 13(d)(3) of the Act which may result in related party transactions in the future. These affiliations are disclosed herein.

On January 26, 2015, we entered into a securities purchase agreement (the “Securities Purchase Agreement”) with two accredited investors, Nicholas Gerber and Scott Schoenberger, (the “Purchasers”) pursuant to which we agreed to sell and the Purchasers agreed to purchase approximately 13,333,333 shares of common stock and approximately 108,172 shares of Series B preferred stock of the Company (adjusted for the effect of the 1:10 reverse stock split in December 2015 and the 1:30 reverse stock split in December 2017) in exchange for $3,000,000 USD. Pursuant to the terms of the Securities Purchase Agreement, Purchasers acquired a controlling interest in the Company pursuant to the issuance of the above shares which constituted approximately 70.0% of the voting control of the Company. Following the closing of the Securities Purchase Agreement, Mr. Gerber and Schoenberger became officers and directors of the Company.

On April 8, 2016 and May 25, 2016, the Company entered into convertible promissory note agreements (the “Promissory Notes”) with the Gerber Irrevocable Family Trust, an affiliate of our shareholder and CEO, that resulted in the funding of $350,000 and with the Schoenberger Family Trust, an affiliate of our shareholder and director, that resulted in the funding of $250,000, respectively. The Promissory Notes bear interest at four percent (4%) per annum and increases to nineteen percent (19%) in the event of default by the Company. The Company and the noteholder negotiated the interest rate at arm’s length relying upon the available market rate for long-term deposits at financial institutions as well as the current rate of return realized by the noteholder for cash deposits currently held. Larger deposits traditionally fall into a “Jumbo” rate category with marginally higher returns. Interest ranged from annual percentage rates of 0.01% at the lowest to 1.75% at the highest. Recognizing the unsecured nature of the promissory note, and the historical record of continued operating losses by the Company, a rate of 4% annual interest was agreed upon in light of the heightened default risk over traditional investment instruments. There was no beneficial conversion feature identified as of the date of issuance of the Promissory Notes.

On September 19, 2016, the Company entered into a conditional Stock Purchase Agreement (the “Agreement”), dated September 19, 2016, with Wainwright Holdings, Inc., a Delaware corporation (“Wainwright”) and certain shareholders of Wainwright (the “Sellers”), pursuant to which the Sellers conditionally agreed to sell, and the Company conditionally agreed to purchase, the total issued and outstanding common stock of Wainwright (the “Wainwright Shares”).

In connection with the acquisition of Wainwright on December 9, 2016 the Promissory Notes were subsequently amended to remove the conversion feature. Additionally, as a result of the transaction completed on December 9, 2016, current shareholders of Wainwright became shareholders of the Company. Prior to the transaction, Mr. Gerber, along with certain family members and certain other Wainwright shareholders, owned the majority of the common stock in the Company as well as Wainwright. Following the closing of this transaction, he and those shareholders continue to own the majority of the Company voting shares. Mr. Gerber and Mr. Schoenberger (and the through the control of their respective trusts which hold stock in the Company) entered into a Voting Agreement reflective of a similar Voting Agreement in place for Wainwright wherein they have agreed to vote in concert with regard to all matters that come before the shareholders or the board of directors for a vote. This Voting Agreement establishes them as a control group.

Any future transactions by and among the parties mentioned above may qualify as related party transactions and will be disclosed accordingly.

We have adopted a policy that any transactions with directors, officers or entities of which they are also officers or directors or in which they have a financial interest, will only be on terms consistent with industry standards and approved by a majority of the disinterested directors of the Board of Directors and based upon a determination that these transactions are on terms no less favorable to us than those which could be obtained by unaffiliated third parties. This policy could be terminated in the future. In addition, interested directors may be counted in determining the presence of a quorum at a meeting of the Board of Directors or a committee thereof which approves such a transaction.

30

ITEM 14.          PRINCIPAL ACCOUNTANT FEES AND SERVICES

Audit Fees. Our principal independent accountant billed us, for each of the last two fiscal years, the following aggregate fees for its professional services rendered for the audit of our annual financial statements and review of financial statements included in our Form 10-Q reports or other services normally provided in connection with statutory and regulatory filings or engagements for those two fiscal years:

          Fiscal Year ended June 30, 2019          $342,597

          Fiscal Year ended June 30, 2018          $333,191

Audit-Related Fees. Our principal independent accountant, and those secondary accountants performing audit reviews of our subsidiaries on our behalf, billed us, for each of the last two fiscal years, the following aggregate fees for assurance and related services reasonably related to the performance of the audit or review of our financial statements and not reported above under “Audit Fees”:

          Fiscal Year ended June 30, 2019          $nil 

          Fiscal Year ended June 30, 2018          $29,975

Tax Fees. Our principal independent accountant billed us, for each of the last two fiscal years, the following aggregate fees for professional services rendered for tax compliance, tax advice and tax planning:

          Fiscal Year ended June 30, 2019          $158,477 

          Fiscal Year ended June 30, 2018          $  75,353

All Other Fees. Our principal independent accountant billed us, for each of the last two fiscal years, the following aggregate fees for products and services provided by it, other than the services reported in the above three categories:

          Fiscal Year ended June 30, 2019          $nil

          Fiscal Year ended June 30, 2018          $nil

Pre-Approval of Audit and Non-Audit Services.  The Audit Committee, and in our case the board of directors, require that it pre-approve all audit, review and attest services and non-audit services before such services are engaged.

31

PART IV

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES.

The following exhibits are filed as part of this Form 10-K:

Exhibit Number	Description of Document
2.1	Agreement for Sale and Purchase of a Business, dated May 29, 2015, by and between Gourmet Foods Ltd. and Concierge Technologies, Inc.3
2.2	Stock Purchase Agreement, dated May 27, 2016, by and among Concierge Technologies, Inc., Brigadier Security Systems (2000) Ltd., and the shareholders of Brigadier Security Systems (2000) Ltd.5
2.3	Stock Purchase Agreement, dated September 19, 2016 by and among Concierge Technologies, Inc., Wainwright Holdings, Inc. and Each of the Individuals and Entities Executing Signature Pages Attached Thereto6
2.4	Asset Purchase Agreement, dated June 24, 2019, by and between Concierge Technologies, Inc., through its wholly owned subsidiary Gourmet Foods Ltd. and RG & MK Wilson Limited.11
2.5	Termination of Asset Purchase Agreement, dated June 24, 2019, by and between Concierge Technologies, Inc., through its wholly owned subsidiary Gourmet Foods Ltd. and RG & MK Wilson Limited.12
3.1	Certificate of Designation (Series of Preferred Stock) filed with the Secretary of State of Nevada on September 23, 2010.1
3.2	Amended Articles of Incorporation of Concierge Technologies, Inc., a Nevada corporation, filed with the Secretary of State of Nevada on April 17, 2017.7
3.3	Amended Bylaws of Concierge Technologies, Inc. effective on March 20, 2017.7
10.1	Securities Purchase Agreement, dated January 26, 2015, by and among Concierge Technologies, Inc. and Purchasers.2
10.2	Registration Rights Agreement, dated January 26, 2015, by and among Concierge Technologies, Inc. and Purchasers.2
10.3	Convertible Promissory Note, dated January 27, 2016, by and between Wainwright Holdings, Inc. and Concierge Technologies, Inc.4
10.4	Amended and Restated Asset Purchase Agreement, dated November 20, 2017, by and between The Original Sprout, LLC and each of the Individual Members of Original Sprout LLC and Kahnalytics, Inc.8
14.1(1)	Code of Business Conduct and Ethics10
16.1	Letter dated April 6, 2017, from Kabani and Company, Inc.9
21.1(1)	Concierge Technologies, Inc. - Subsidiary List(1)13
31.1(1)	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2(1)	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1(1)	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2(1)	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS	XBRL Instance Document#
101.SCH	XBRL Taxonomy Extension Schema Document#
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document#
101.LAB	XBRL Taxonomy Extension Labels Linkbase Document#
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document#
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document#

# Filed Herewith. Pursuant to Regulation S-T, this interactive data file is deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections.

(1)  Filed herewith.

¹Previously filed with Report on Form 10-K on October 8, 2010 and incorporated by reference herein.

²Previously filed with Current Report on Form 8-K on January 29, 2015 and incorporated by reference herein.

³Previously filed with Current Report on Form 8-K on June 2, 2015 and incorporated by reference herein.

⁴Previously filed with Current Report on Form 8-K on February 2, 2016 and incorporated by reference herein.

32

⁵Previously filed with Current Report on Form 8-K on June 8, 2016 and incorporated by reference herein.

⁶Previously filed with Current Report on Form 8-K on September 20, 2016 and incorporated by reference herein.

⁷Previously filed with Definitive Proxy Materials on Schedule 14A on February 28, 2017 and incorporated by reference herein.

⁸Previously filed with Current Report on Form 8-K on November 21, 2017 and incorporated by reference herein. 

⁹Previously filed with Current Report on Form 8-K on April 6, 2017 and incorporated by reference herein.

¹⁰Previously filed with Current Report on Form 10-K on September 28, 2018 and incorporated by reference herein.

¹¹Previously filed with Current Report on from 8-K on June 27, 2019 and incorporated by referencence herein.

¹²Previously filed with Current Report on from 8-K on August 2, 2019 and incorporated by referencence herein.

¹³Concierge Technologies, Inc. - Subsidiary List

ITEM 16. FORM 10-K SUMMARY

Not applicable.

33

SIGNATURES

In accordance with Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	CONCIERGE TECHNOLOGIES, INC.
Date: September 30, 2019	/s/ Nicholas D. Gerber
	Nicholas D. Gerber, CEO

In accordance with the Exchange Act, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Date: September 30, 2019	/s/ David W. Neibert
	David W. Neibert, C.O.O., Secretary and Director
Date: September 30, 2019	/s/ Scott Schoenberger
	Scott Schoenberger, Director
Date: September 30, 2019	/s/ Matt Gonzalez
	Matt Gonzalez, Director
Date: September 30, 2019	/s/ Derek Mullins
	Derek Mullins, Director
Date: September 30, 2019	/s/ Kathryn D. Rooney
	Kathryn D. Rooney, Director
Date: September 30, 2019	/s/ Erin Grogan
	Erin Grogan, Director
Date: September 30, 2019	/s/ Kelly J. Anderson
	Kelly J. Anderson, Director
Date: September 30, 2019	/s/ Joya Delgado Harris
	Joya Delgado Harris, Director

34

EX-21.1

Exhibit 21.1

CONCIERGE TECHNOLOGIES INC.

Subsidiaries of Registrant

June 30, 2019

Company Name                                                         Domicile or State of Incorporation

Brigadier Security Systems (2000) Ltd.                      Canada

Gourmet Foods, Ltd.                                                   New Zealand

Kahnalytics, Inc. dba/Original Sprout                        California

Wainwright Holdings, Inc.                                          Delaware

EX-31.1

EXHIBIT 31.1

Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer

I, Nicholas Gerber, certify that:

1.     I have reviewed this report on Form 10-K of the Concierge Technologies, Inc.;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.     The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)     Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)     Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)     Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)     Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.     The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

(a)     All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)     Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: September 30, 2019     /s/ Nicholas Gerber

Nicholas Gerber

Chief Executive Officer

EX-31.2

EXHIBIT 31.2

Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer

I, Stuart P. Crumbaugh, certify that:

1.     I have reviewed this report on Form 10-K of the Concierge Technologies, Inc.;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.     Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.     The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)     Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)     Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)     Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)     Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.     The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

(a)     All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)     Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: September 30, 2019     /s/ Stuart P. Crumbaugh     

Stuart P. Crumbaugh

Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Concierge Technologies, Inc. (the “Company”) on Form 10-K for the year ended June 30, 2019, as filed with the Securities and Exchange Commission on or about the date hereof (the “Report”), I, Nicholas Gerber, Chief Executive Officer of the Company, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) Information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: September 30, 2019     /s/ Nicholas Gerber     

Nicholas Gerber

Chief Executive Officer

A signed original of this written statement required by Section 906 has been provided to Concierge Technologies, Inc. and will be retained by Concierge Technologies, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Concierge Technologies, Inc. (the “Company”) on Form 10-K for the year ended June 30, 2019, as filed with the Securities and Exchange Commission on or about the date hereof (the “Report”), I, Stuart P. Crumbaugh, Chief Financial Officer of the Company, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) Information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: September 30, 2019     /s/ Stuart P. Crumbaugh

Stuart P. Crumbaugh

Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to Concierge Technologies, Inc. and will be retained by Concierge Technologies, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Note 7 - Other Assets - Fair Value Measurement of Securities (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Investments	$ 3,756,596	$ 3,204,005
Fair Value, Inputs, Level 1 [Member]
Investments	3,756,596	2,961,666
Fair Value, Inputs, Level 2 [Member]
Investments		242,339
Fair Value, Inputs, Level 3 [Member]
Investments
Money Market Funds [Member]
Investments	3,005,182	180,138
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member]
Investments	3,005,182	180,138
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member]
Investments
Money Market Funds [Member] | Fair Value, Inputs, Level 3 [Member]
Investments
Other Short Term Investments [Member]
Investments	749,249
Other Short Term Investments [Member] | Fair Value, Inputs, Level 1 [Member]
Investments	749,249
Other Short Term Investments [Member] | Fair Value, Inputs, Level 2 [Member]
Investments
Other Short Term Investments [Member] | Fair Value, Inputs, Level 3 [Member]
Investments
Mutual Fund [Member]
Investments		2,780,480
Mutual Fund [Member] | Fair Value, Inputs, Level 1 [Member]
Investments		2,780,480
Mutual Fund [Member] | Fair Value, Inputs, Level 2 [Member]
Investments
Mutual Fund [Member] | Fair Value, Inputs, Level 3 [Member]
Investments
Other Equities [Member]
Investments	2,165	1,048
Other Equities [Member] | Fair Value, Inputs, Level 1 [Member]
Investments	2,165	1,048
Other Equities [Member] | Fair Value, Inputs, Level 2 [Member]
Investments
Other Equities [Member] | Fair Value, Inputs, Level 3 [Member]
Investments
Hedge Asset [Member]
Investments		242,339
Hedge Asset [Member] | Fair Value, Inputs, Level 1 [Member]
Investments
Hedge Asset [Member] | Fair Value, Inputs, Level 2 [Member]
Investments		242,339
Hedge Asset [Member] | Fair Value, Inputs, Level 3 [Member]
Investments

XML

Note 6 - Intangible Assets - Schedule of Amortization (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
2020	$ 335,508
2021	326,034
2022	306,809
2023	286,507
2024	268,809
Thereafter	1,136,056
Net intangibles	$ 2,659,723	$ 2,995,231

XML

Note 10 - Related Party Transactions (Details Textual) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Interest Expense, Related Party	$ 24,280	$ 24,280
Revenue from Related Parties	15,021,439	18,744,313
Accounts Receivable, Related Parties	1,000,000	1,500,000
Expense Waiver Funds, Related Party	300,000	700,000
Fund Expense Limitation Amount, Related Party	200,000	500,000
Waivers Payable, Related Party	$ 300	$ 700,000

XML

Note 15 - Commitments and Contingencies (Details Textual)	12 Months Ended
	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2019 NZD ($)	Jun. 30, 2019 USD ($)
Operating Leases, Rent Expense, Net, Total	$ 413,429	$ 254,150
Expense Waivers		662,650		$ 325,821
Defined Contribution Plan, Employer Discretionary Contribution Amount	158	$ 95
General Security Lease Agreement [Member]
Operating Lease Arrangement, Collateral Amount			$ 110,000	73,901
Lease Arrangement for Primary Facility [Member]
Operating Lease Arrangement, Collateral Amount			$ 20,000	$ 13,437
Gourmet Foods [Member] | Leased Factory and Warehouse Located in Tauranga, New Zealand [Member]
Lessor, Operating Lease, Term of Contract			3 years	3 years
Lessor, Operating Lease, Renewal Term			3 years	3 years
Operating Lease, Monthly Rent	11,561
Brigadier [Member] | Leased Office and Storage Facilities Located in Saskatoon, Saskatchewan [Member]
Lessor, Operating Lease, Renewal Term			3 years	3 years
Operating Lease, Monthly Rent	2,755
The Original Sprout LLC [Member] | Office and Warehouse Space in San Clemente, CA [Member]
Operating Lease, Monthly Rent	7,837
Wainwright [Member] | Lease for Office Space in Walnut Creek, California [Member]
Operating Lease, Monthly Rent	$ 12,000
USCF [Member]
Defined Contribution Plan, Minimum Age Requirement for Participation	21 years
Defined Contribution Plan, Minimum Years of Service Requirement	1 year

XML

Note 16 - Segment Reporting - Reconciliation of Revenue by Segment (Details) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Net income	$ 261,849	$ 1,734,686
Capital expenditures	50,165	318,064
USA Beauty Products and Other [Member]
Capital expenditures	5,501	2,707
Corporate Segment [Member]
Capital expenditures		495
U.S.A Investment Fund Management [Member]
Capital expenditures
New Zealand Food Industry Segment [Member]
Capital expenditures	48,856	165,414
Canada Security Alarm [Member]
Capital expenditures	(4,192)	149,449
Operating Segments [Member]
Revenue from Contract with Customer, Including Assessed Tax	26,948,623	28,710,589
Net income	261,849	1,734,686
Operating Segments [Member] | USA Beauty Products and Other [Member]
Revenue from Contract with Customer, Including Assessed Tax	3,621,246	1,694,534
Net income	406,963	42,702
Operating Segments [Member] | Corporate Segment [Member]
Net income	(1,223,930)	(744,992)
Operating Segments [Member] | U.S.A Investment Fund Management [Member]
Revenue from Contract with Customer, Including Assessed Tax	15,021,439	18,744,313
Net income	687,755	1,950,711
Operating Segments [Member] | New Zealand Food Industry Segment [Member]
Revenue from Contract with Customer, Including Assessed Tax	4,747,358	4,968,158
Net income	(13,326)	99,398
Operating Segments [Member] | Canada Security Alarm [Member]
Revenue from Contract with Customer, Including Assessed Tax	3,558,580	3,303,584
Net income	$ 404,387	$ 386,867

XML

Consolidated Balance Sheets	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)
CURRENT ASSETS
Cash and cash equivalents	$ 6,481,815	$ 7,524,114
Accounts receivable, net	939,649	1,068,240
Accounts receivable - related parties	1,037,146	1,458,159
Inventories	1,008,662	931,065
Prepaid income tax and tax receivable	1,754,369	2,138,636
Investments	3,756,596	3,204,005
Other current assets	546,105	374,617
Total current assets	15,524,342	16,698,836
Restricted cash	13,437	13,536
Property and equipment, net	757,014	1,080,471
Goodwill	915,790	915,790
Intangible assets, net	2,659,723	2,995,231
Deferred tax assets, net	859,696	865,120
Other assets, long - term	523,607	532,165
Total assets	21,253,608	23,101,149
CURRENT LIABILITIES
Accounts payable and accrued expenses	2,867,081	3,249,387
Expense waivers – related parties	325,821	662,650
Purchase consideration payable		1,205,000
Notes payable - related parties	3,500	3,500
Equipment loans, current portion	26,241	46,705
Total current liabilities	3,222,643	5,167,242
LONG TERM LIABILITIES
Notes payable - related parties	600,000	600,000
Equipment loans, net of current portion	61,057	149,491
Deferred tax liabilities	176,578	208,419
Total liabilities	4,060,278	6,125,152
STOCKHOLDERS' EQUITY
Preferred stock, $0.001 par value; 50,000,000 authorized Series B: 53,032 issued and outstanding at June 30, 2019 and 436,951 at June 30, 2018	53	437
Common stock, $0.001 par value; 900,000,000 shares authorized; 37,237,519 shares issued and outstanding at June 30, 2019 and 29,559,139 at June 30, 2018	37,237	29,559
Additional paid-in capital	9,178,838	9,186,132
Accumulated other comprehensive income	(175,659)	148,808
Retained earnings	8,152,861	7,611,061
Total stockholders' equity	17,193,330	16,975,997
Total liabilities and stockholders' equity	$ 21,253,608	$ 23,101,149

XML

Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity - USD ($)		Preferred Stock [Member]		Common Stock [Member]	Additional Paid-in Capital [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Jun. 30, 2017	[1]	436,951		29,559,139
Balance at Jun. 30, 2017		$ 2,011,934	[1]	$ 29,559	$ 7,174,635	$ 119,338	$ 5,876,375	$ 13,199,907
Balance at Jun. 30, 2017	[1]	437		29,559	9,186,132	119,338	5,876,375	15,211,841
Change in investment valuation						243,754		243,754
(Loss) on currency translation						(214,284)		(214,284)
Net income			[1]				1,734,686	1,734,686
Balance (in shares) at Jun. 30, 2018		436,951		29,559,139
Balance at Jun. 30, 2018		$ 437	[1]	$ 29,559	9,186,132	148,808	7,611,061	16,975,997
Change in investment valuation
(Loss) on currency translation						(44,516)		(44,516)
Net income			[1]				261,849	261,849
Reclassification of investment gains						(279,951)	279,951
Conversion of preferred shares (in shares)		(383,919)		7,678,380
Conversion of preferred shares		$ (384)		$ 7,678	(7,294)
Balance (in shares) at Jun. 30, 2019		53,032		37,237,519
Balance at Jun. 30, 2019		$ 53	[1]	$ 37,237	$ 9,178,838	$ (175,659)	$ 8,152,861	$ 17,193,330

[1] Upon issuance of the preferred shares in the Wainwright acquisition, the Company no longer had sufficient authorized, unissued, common stock to allow for Series B conversion. Accordingly, the Series B was reclassified to the mezzanine section. On December 15, 2017 a 1:30 reverse stock split was completed and allowed for the Series B shares to be moved from the mezzanine section to stockholders' equity. All share amounts have been adjusted for the reverse stock split (Note 13).

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Note 9 - Accounts Payable and Accrued Expenses

12 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

NOTE

9.

          ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consisted of the following:

	June 30, 201 9		June 30, 201 8
Accounts payable	$	1,720,902	$	1,935,645
Accrued interest		117,555		56,689
Taxes payable		181,563		3,938
Deferred rent		37,076		3,681
Accrued payroll, vacation and bonus payable		345,520		299,630
Accrued expenses		464,465		949,804
Total	$	2,867,081	$	3,249,387

XML

Note 5 - Property and Equipment

12 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

NOTE

5.

          PROPERTY AND EQUIPMENT

Property, plant and equipment consisted of the following as of

June 30, 2019

and

2018:

	June 30, 201 9			June 30, 201 8
Plant and equipment	$	1,511,629		$	1,487,568
Furniture and office equipment		188,370			171,978
Vehicles		332,672			351,381
Total property and equipment, gross		2,032,671			2,010,927
Accumulated depreciation		(1,275,657	)		(930,456	)
Total property and equipment, net	$	757,014		$	1,080,471

For the years ended

June 30, 2019

and

2018,

depreciation expense for property, plant and equipment totaled

$366,812

and

$342,628,

respectively. 

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Note 16 - Segment Reporting (Tables)

12 Months Ended

Jun. 30, 2019

Notes Tables

Reconciliation of Assets from Segment to Consolidated [Table Text Block]

	As of June 30, 201 9		As of June 30, 201 8
Identifiable assets:
Corporate headquarters	$	2,730,805	$	2,123,048
U.S.A. : fund management		10,878,549		13,563,773
U.S.A. : beauty products		3,780,278		3,739,979
New Zealand: food industry		1,838,800		1,959,486
Canada: security systems		2,025,176		1,714,863
Consolidated	$	21,253,608	$	23,101,149

	201 9			201 8
Asset Location:
U.S.A. : corporate headquarters	$	14,305		$	14,305
U.S.A. : beauty products		10,745			5,244
U.S.A.: investment fund management		-			-
New Zealand: food industry		1,659,186			1,627,545
Canada: security systems		348,435			363,833
Total All Locations		2,032,671			2,010,927
Less accumulated depreciation		(1,275,657	)		(930,456	)
Net property, plant and equipment	$	757,014		$	1,080,471

Reconciliation of Revenue from Segments to Consolidated [Table Text Block]

	Year Ended June 30, 201 9			Year Ended June 30, 201 8
Revenues:
U.S.A. : beauty products	$	3,621,246		$	1,694,534
U.S.A. : investment fund management		15,021,439			18,744,313
New Zealand : food industry		4,747,358			4,968,158
Canada : security systems		3,558,580			3,303,584
Consolidated	$	26,948,623		$	28,710,589
Net income (loss) after taxes:
Corporate headquarters	$	(1,223,930	)	$	(744,992	)
U.S.A. : beauty products		406,963			42,702	)
U.S.A. : investment fund management		687,755			1,950,711
New Zealand : food industry		(13,326	)		99,398
Canada : security systems		404,387			386,867
Consolidated	$	261,849		$	1,734,686

	201 9			201 8
Capital expenditures:
U.S.A. : corporate headquarters	$	-		$	495
U.S.A. : beauty products		5,501			2,707
U.S.A.: investment fund management		-			-
New Zealand: food industry		48,856			165,414
Canada: security systems		(4,192	)		149,449
Consolidated	$	50,165		$	318,064

XML

Note 7 - Other Assets (Tables)

12 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Other Assets [Table Text Block]

	As of June 30, 201 9		As of June 30, 201 8
Prepaid expenses	$	462,215	$	358,869
Other current assets		83,890		15,748
Total	$	546,105	$	374,617

Schedule of Available-for-sale Securities Reconciliation [Table Text Block]

	As of June 30, 201 9
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Money market funds	$	3,005,182	$	-	$	-		$	3,005,182
Other short term investments		749,988		-		(739	)		749,249
Other equities		3,421		-		(1,256	)		2,165
Total short-term investments	$	3,758,591	$	-	$	(1,995	)	$	3,756,596

	As of June 30, 201 8
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Money market funds	$	180,138	$	-	$	-		$	180,138
USCI mutual fund investment		2,500,000		280,480		-			2,780,480
Hedged asset		523,100		-		(280,761	)		242,339
Other equities		1,577		-		(529	)		1,048
Total short-term investments	$	3,204,815	$	280,480	$	(281,290	)	$	3,204,005

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

	As of June 30, 201 9
	Total		Level 1		Level 2		Level 3
Money market funds	$	3,005,182	$	3,005,182	$	-	$	-
Other short term investments		749,249		749,249		-		-
Other equities		2,165		2,165		-		-
Total	$	3,756,596	$	3,756,596	$	-	$	-

	As of June 30, 201 8
	Total		Level 1		Level 2		Level 3
Money market funds	$	180,138	$	180,138	$	-	$	-
Mutual fund investment		2,780,480		2,780,480		-		-
Hedge asset		242,339		-		242,339		-
Other equities		1,048		1,048		-		-
Total	$	3,204,005	$	2,961,666	$	242,339	$	-

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Note 12 - Business Combination (Tables)

12 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

Item	Amount
Inventory	$	371,866
Accounts receivable		288,804
Furniture, fixtures and equipment		1,734
Pre-payments of inventory		8,775
Discount on installment payments**		64,176
Intangible assets*		2,330,000
Goodwill		416,817
Total Purchase Price	$	3,482,172

Business Acquisition, Pro Forma Information [Table Text Block]

	Year Ended
	June 30, 2018
	Pro Forma (1)
Net Revenues	$	30,782,940
Net Income	$	2,044,203
Basic Earnings per Share	$	0.07
Diluted Earnings per Share	$	0.05

XML

Note 17 - Subsequent Events

12 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Subsequent Events [Text Block]

NOTE

17.

     SUBSEQUENT EVENTS 

The Company evaluated subsequent events for recognition and disclosure through the date the financial statements were issued or filed. Nothing has occurred outside normal operations since that required recognition or disclosure in these financial statements other than the items noted below.

On

July 2, 2019,

Brigadier finalized the purchase of its office facility and land located in Saskatoon for

CAN$750,000

(approximately

US$572,858

), funded by a bank loan of

CAN$525,000

(approximately

US$401,000

) and

CAN$225,000

(approximately

US$171,858

) in cash. The bank loan matures in

5

years and bears interest at the annual rate of

4.14%.

On

June 24, 2019,

Gourmet Foods, entered into an agreement to purchase the assets of Maketu Pies subject to, among other things, completion of due diligence. However, after completion of due diligence, the agreement was terminated by Gourmet Foods pursuant to its terms on

July 31, 2019. (

reference Form

8

-K filed on

June 27, 2019

and

August 2, 2019)

USCF Advisers implemented fee waivers for all

three

of its exchange-traded funds ("ETFs") effective

August 15, 2019:

the USCF SummerHaven Dynamic Commodity Strategy

No

K-

1

Fund ("SDCI"), the USCF SummerHaven SHPEI Index Fund ("BUY") and the he USCF SummerHaven SHPEN Index Fund ("BUYN").  The fee waivers for the

three

ETFs will remain in effect through

October 31, 2020

and

may

be renewed in the future with approval from the Funds Board of Trustees of USCF ETF Trust.

On

August 15, 2019,

the Company entered into a letter of engagement with Maxim Group LLC ("Maxim") who is to provide investment banking services. In connection with the fee arrangement for services to be provided, the Company issued to Maxim

175,000

shares of its unregistered common stock.

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Note 13 - Stockholders' Equity

12 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

NOTE

13.

        STOCKHOLDERS' EQUITY

Reverse Stock Split

On

November 17, 2017,

the Board of Directors (the “Board’) of the Company approved the implementation of a

one

-for-

thirty

(

1:30

) reverse stock split of all of the Company’s issued and outstanding common and preferred stock (the “Reverse Stock Split”).  The Reverse Stock Split became effective when trading opened on

December 15, 2017.

The Reverse Stock Split was previously approved by the Company’s shareholders pursuant to a majority written consent and by the Board pursuant to unanimous written consent on

February 13, 2017.

The approvals provided discretion to the Board to implement the Reverse Stock Split by the end of

2017.

 The number of the Company’s authorized shares of common stock did

not

change. All figures have been presented on the basis of reverse split where ever applicable for all the periods presented in these financial statements.

Convertible Preferred Stock

Each issued Series B Voting, Convertible Preferred Stock is convertible into

20

shares of common stock and carries a vote of

20

shares of common stock in all matters brought before the shareholders for a vote. On

February 7, 2019,

the Company converted

383,919

shares of Series B Voting, Convertible Preferred Stock to

7,678,380

shares of common stock per the request of the shareholder and pursuant to the stock designation. After the conversion, there remain

53,032

shares of Series B Voting, Convertible Preferred Stock outstanding as of

June 30, 2019.

Accumulated Other Comprehensive Income

The following table presents activity for the years ending

June 30, 2019

and

June 30, 2018:

Balance as of June 30, 2017	$	119,338
Change in short-term investment valuation before reclassification to earnings		329,629
Foreign currency translation (loss)		(214,284	)
Change in short-term investment valuation due to reclassification to earnings		(85,875	)
Balance as of June 30, 2018	$	148,808
Foreign currency translation (loss)		(44,516	)
Change in short-term investment valuation due to reclassification to earnings		(279,951	)
Balance as of June 30, 2019	$	(175,659	)

XML

Note 4 - Inventories (Tables)

12 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Inventory, Current [Table Text Block]

	June 30,		June 30,
	201 9		201 8
Raw materials	$	208,284	$	195,674
Supplies and packing materials		188,035		142,257
Finished goods		612,343		593,134
Total inventories	$	1,008,662	$	931,065

XML

Note 6 - Intangible Assets - Summary of Finite-lived Intangible Assets (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Finite-lived intangible assets, gross	$ 3,375,870	$ 3,375,870
Less : accumulated amortization	(716,147)	(380,639)
Net intangibles	2,659,723	2,995,231
Customer Relationships [Member]
Finite-lived intangible assets, gross	700,252	700,252
Less : accumulated amortization	(203,492)	(124,895)
Net intangibles	496,760	575,357
Brand Name [Member]
Finite-lived intangible assets, gross	1,142,122	1,142,122
Less : accumulated amortization	(129,084)	(88,872)
Net intangibles	1,013,038	1,053,250
Domain Name [Member]
Finite-lived intangible assets, gross	36,913	36,913
Less : accumulated amortization	(26,341)	(18,958)
Net intangibles	10,572	17,955
Recipes [Member]
Finite-lived intangible assets, gross	1,221,601	1,221,601
Less : accumulated amortization	(246,622)	(92,303)
Net intangibles	974,979	1,129,298
Noncompete Agreements [Member]
Finite-lived intangible assets, gross	274,982	274,982
Less : accumulated amortization	(110,608)	(55,612)
Net intangibles	$ 164,374	$ 219,370

XML

Note 2 - Summary of Significant Accounting Policies - Concentration Risk (Details) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Revenue, related parties	$ 15,021,439	$ 18,744,313
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Wainwright [Member]
Revenue, related parties	$ 15,021,439	$ 18,744,313
Concentration risk percentage	100.00%	100.00%
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Wainwright [Member] | Customers Related to the USO Fund [Member]
Revenue, related parties	$ 7,308,354	$ 9,752,223
Concentration risk percentage	49.00%	52.00%
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Wainwright [Member] | Customers Related to the USCI Fund [Member]
Revenue, related parties	$ 4,051,605	$ 4,253,921
Concentration risk percentage	27.00%	23.00%
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Wainwright [Member] | Customers Related to the UNG Fund [Member]
Revenue, related parties	$ 1,922,596	$ 2,753,723
Concentration risk percentage	13.00%	15.00%
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Wainwright [Member] | All Other Customers [Member]
Revenue, related parties	$ 1,738,884	$ 1,984,446
Concentration risk percentage	11.00%	10.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Wainwright [Member]
Revenue, related parties	$ 1,037,146	$ 1,458,159
Concentration risk percentage	100.00%	100.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Wainwright [Member] | Customers Related to the USO Fund [Member]
Revenue, related parties	$ 526,981	$ 674,535
Concentration risk percentage	51.00%	46.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Wainwright [Member] | Customers Related to the USCI Fund [Member]
Revenue, related parties	$ 236,251	$ 431,288
Concentration risk percentage	23.00%	30.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Wainwright [Member] | Customers Related to the UNG Fund [Member]
Revenue, related parties	$ 141,413	$ 182,399
Concentration risk percentage	13.00%	12.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Wainwright [Member] | All Other Customers [Member]
Revenue, related parties	$ 132,501	$ 169,937
Concentration risk percentage	13.00%	12.00%

XML

Note 4 - Inventories - Inventory Summary (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Raw materials	$ 208,284	$ 195,674
Supplies and packing materials	188,035	142,257
Finished goods	612,343	593,134
Total inventories	$ 1,008,662	$ 931,065

XML

Note 13 - Stockholders' Equity - Summary of Accumulated Other Comprehensive Income (Details) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Balance	$ 148,808
Foreign currency translation (loss)	(44,516)	$ (214,284)
Foreign currency translation (loss)	(44,516)	(214,284)
Balance	(175,659)	148,808
AOCI Attributable to Parent [Member]
Balance	148,808	119,338
Change in short-term investment valuation before reclassification to earnings		329,629
Foreign currency translation (loss)	(44,516)	(214,284)
Change in short-term investment valuation due to reclassification to earnings	(279,951)	(85,875)
Foreign currency translation (loss)	(44,516)	(214,284)
Balance	$ (175,659)	$ 148,808

XML

Note 12 - Business Combination (Details Textual) - Kahnalytics [Member] - The Original Sprout LLC [Member]	Dec. 18, 2017 USD ($)
Business Combination, Consideration Transferred, Total	$ 3,500,000
Payments to Acquire Businesses, Gross	982,172
Other Payments to Acquire Businesses	$ 1,250,000

XML

Label	Element	Value
cncg_AdjustmentsToAdditionalPaidInCapitalReclassificationOfSeriesBPreferredStock	cncg_AdjustmentsToAdditionalPaidInCapitalReclassificationOfSeriesBPreferredStock	$ (2,011,497)
Reclassification of Series B Preferred stock par value (1)	us-gaap_ReclassificationsOfTemporaryToPermanentEquity	437
AOCI Attributable to Parent [Member]
cncg_AdjustmentsToAdditionalPaidInCapitalReclassificationOfSeriesBPreferredStock	cncg_AdjustmentsToAdditionalPaidInCapitalReclassificationOfSeriesBPreferredStock
Reclassification of Series B Preferred stock par value (1)	us-gaap_ReclassificationsOfTemporaryToPermanentEquity
Additional Paid-in Capital [Member]
cncg_AdjustmentsToAdditionalPaidInCapitalReclassificationOfSeriesBPreferredStock	cncg_AdjustmentsToAdditionalPaidInCapitalReclassificationOfSeriesBPreferredStock	(2,011,497)
Reclassification of Series B Preferred stock par value (1)	us-gaap_ReclassificationsOfTemporaryToPermanentEquity
Common Stock [Member]
cncg_AdjustmentsToAdditionalPaidInCapitalReclassificationOfSeriesBPreferredStock	cncg_AdjustmentsToAdditionalPaidInCapitalReclassificationOfSeriesBPreferredStock
Reclassification of Series B Preferred stock par value (1)	us-gaap_ReclassificationsOfTemporaryToPermanentEquity
Preferred Stock [Member]
cncg_AdjustmentsToAdditionalPaidInCapitalReclassificationOfSeriesBPreferredStock	cncg_AdjustmentsToAdditionalPaidInCapitalReclassificationOfSeriesBPreferredStock	2,011,497
Reclassification of Series B Preferred stock par value (1)	us-gaap_ReclassificationsOfTemporaryToPermanentEquity	437
Retained Earnings [Member]
cncg_AdjustmentsToAdditionalPaidInCapitalReclassificationOfSeriesBPreferredStock	cncg_AdjustmentsToAdditionalPaidInCapitalReclassificationOfSeriesBPreferredStock
Reclassification of Series B Preferred stock par value (1)	us-gaap_ReclassificationsOfTemporaryToPermanentEquity

[1] Upon issuance of the preferred shares in the Wainwright acquisition, the Company no longer had sufficient authorized, unissued, common stock to allow for Series B conversion. Accordingly, the Series B was reclassified to the mezzanine section. On December 15, 2017 a 1:30 reverse stock split was completed and allowed for the Series B shares to be moved from the mezzanine section to stockholders' equity. All share amounts have been adjusted for the reverse stock split (Note 13).

XML

Note 5 - Property and Equipment (Tables)

12 Months Ended

Jun. 30, 2019

Notes Tables

Property, Plant and Equipment [Table Text Block]

	June 30, 201 9			June 30, 201 8
Plant and equipment	$	1,511,629		$	1,487,568
Furniture and office equipment		188,370			171,978
Vehicles		332,672			351,381
Total property and equipment, gross		2,032,671			2,010,927
Accumulated depreciation		(1,275,657	)		(930,456	)
Total property and equipment, net	$	757,014		$	1,080,471

XML

Significant Accounting Policies (Policies)

12 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation and Accounting Principles

The Company has prepared the accompanying financial statements on a consolidated basis. In the opinion of management, the accompanying consolidated balance sheets and related statements of income and comprehensive income, and cash flows include all adjustments, consisting only of normal recurring items, necessary for their fair presentation, prepared on an accrual basis, in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

Consolidation, Policy [Policy Text Block]

Principles of Consolidation

The accompanying condensed consolidated financial statements, which are referred herein as the “Financial Statements” include the accounts of Concierge and its wholly owned subsidiaries, Wainwright, Gourmet Foods, Brigadier and Original Sprout.

All significant inter-company transactions and accounts have been eliminated in consolidation.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of the Financial Statements are in conformity with U.S. GAAP which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

Cash and cash equivalents include all highly liquid debt instruments with original maturities of

three

months or less. The Company maintains its cash and cash equivalents in financial institutions in the United States, Canada, and New Zealand. Accounts in the United States are insured by the Federal Deposit Insurance Corporation up to

$250,000

per depositor, and accounts in Canada are insured by the Canada Deposit Insurance Corporation up to

CD$100,000

per depositor. Accounts in New Zealand are uninsured. The Company has, at times, held deposits in excess of insured amounts, but the Company does

not

expect any losses in such accounts.

Premiums Receivable, Allowance for Doubtful Accounts, Estimation Methodology, Policy [Policy Text Block]

Accounts Receivable, net and Accounts Receivable - Related Parties

Accounts receivable, net, consist of receivables from the Brigadier, Gourmet Foods and Original Sprout businesses. Management regularly reviews the composition of accounts receivable and analyzes customer credit worthiness, customer concentrations, current economic trends and changes in customer payment patterns to determine whether or

not

an account should be deemed uncollectible. Reserves, if any, are recorded on a specific identification basis. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. As of

June 30, 2019

and

June 30, 2018,

the Company had

$2,075

and

$51,747,

respectively, listed as doubtful accounts.

Accounts receivable - related parties, consist of fund asset management fees receivable from the Wainwright business. Management fees receivable generally consist of

one

month of management fees which are collected in the month after they are earned. As of

June 30, 2019,

and

June 30, 2018,

there is

no

allowance for doubtful accounts as all amounts are deemed collectible.

Major Customers, Policy [Policy Text Block]

Major Customers and Suppliers – Concentration of Credit Risk

Concierge, through Brigadier, is partially dependent upon its contractual relationship with the alarm monitoring company who provides monitoring services to Brigadier’s customers. In the event this contract is terminated, Brigadier would be compelled to find an alternate source of alarm monitoring, or establish such a facility itself. Management believes that the contractual relationship is sustainable, and has been for many years, with alternate solutions available should the need arise. Sales to the largest customer, which includes contracts and recurring monthly support fees, totaled

46%

and

41%

of the total Brigadier revenues for the years ended

June 30, 2019

and

June 30, 2018,

respectively. The same customer accounted for approximately

37%

of Brigadier's accounts receivable as of the balance sheet date of

June 30, 2019

as compared to

35%

as of

June 30, 2018.

Another large account, which has been a significant customer this fiscal year, contributed

12%

of the total sales revenues for the year ended

June 30, 2019

and

nil

for the year ended

June 30, 2018.

There were

no

accounts receivable from this customer as of

June 30, 2019

or

2018.

Concierge, through Gourmet Foods, has

three

major customer groups comprising the gross revenues to Gourmet Foods;

1

) grocery,

2

) gasoline convenience stores, and

3

) independent retailers. The grocery and food industry is dominated by several large chain operations, which are customers of Gourmet Foods, and there are

no

long term guarantees that these major customers will continue to purchase products from Gourmet Foods, however the relationships have been in place for sufficient time to give management reasonable confidence in their continuing business.

For the year ended and balance sheet date of

June 30, 2019,

Gourmet Foods’ largest customer in the grocery industry, who operates through a number of independently branded stores, accounted for approximately

22%

of Gourmet Foods sales revenues and

28%

of Gourmet Foods accounts receivable as compared to

21%

and

33%

for the prior year ended

June 30, 2018,

respectively. The

second

largest in the grocery industry accounted for approximately

12%

of Gourmet Foods sales revenues for the year ended

June 30, 2019

as compared to

12%

for the year ended

June 30, 2018.

This same group accounted for

19%

of Gourmet Foods accounts receivable as of

June 30, 2019

as compared to

16%

as of

June 30, 2018.

In the gasoline convenience store market Gourmet Foods supplies

two

major channels. The largest is a marketing consortium of gasoline dealers operating under the same brand who, for the year ended and balance sheet date of

June 30, 2019,

accounted for approximately

43%

of Gourmet Foods’ gross sales revenues as compared to

41%

for the year ended

June 30, 2018.

No

single member of the consortium is responsible for a significant portion of Gourmet Foods’ accounts receivable. The

third

category of independent retailers and cafes accounted for the remaining balance of Gourmet Foods’ gross sales revenue, however the group members are independently owned and individually responsible for their financial obligations with

no

one

customer accounting for a significant portion of revenues or accounts receivable.

Concierge, through Original Sprout, is

not

dependent upon any

one

customer or group of customers as

no

single customer or buying group consistently accounts for over

10%

of the gross revenues, though due to timing of deliveries

one

customer accounted for approximately

10%

of our gross revenues for the year ended

June 30, 2019.

There were

3

major distributor accounts, all current, representing

25%,

17%,

and

12%

for a total of

54%

of all accounts receivable as of

June 30, 2019.

Original Sprout is partially dependent upon its relationship with a product packaging company who, at the direction of Original Sprout, manufactures the products, packages them in appropriate containers, and delivers the finished goods to Original Sprout for distribution to its customers. All of Original Sprout’s products are currently produced by this packaging company, although if this relationship were to fail there are other similar packaging companies available to Original Sprout at competitive pricing.

For our subsidiary, Wainwright, the concentration of risk and the relative reliance on major customers are found within the various funds it manages and the associated

12

month revenues and accounts receivable – related parties as of

June 30, 2019

and

June 30, 2018

as depicted below.

	Year ended June 30, 201 9				Year ended June 30, 201 8
	Revenue				Revenue
Fund
USO	$	7,308,354	49	%	$	9,752,223	52	%
USCI		4,051,605	27	%		4,253,921	23	%
UNG		1,922,596	13	%		2,753,723	15	%
All Others		1,738,884	11	%		1,984,446	10	%
Total	$	15,021,439	100	%	$	18,744,313	100	%

	June 30, 2019				June 30, 2018
	Accounts Receivable				Accounts Receivable
Fund
USO	$	526,981	51	%	$	674,535	46	%
USCI		236,251	23	%		431,288	30	%
UNG		141,413	13	%		182,399	12	%
All Others		132,501	13	%		169,937	12	%
Total	$	1,037,146	100	%	$	1,458,159	100	%

Inventory, Policy [Policy Text Block]

Inventories

Inventories, consisting primarily of food products and packaging in New Zealand, hair and skin care finished products and components in the U.S. and security system hardware in Canada, are valued at the lower of cost (determined on a FIFO basis) or net realizable value. Inventories include product cost, inbound freight and warehousing costs where applicable. Management compares the cost of inventories with the net realizable value and an allowance is made for writing down the inventories to their net realizable value, if lower. For the years ended

June 30, 2019

and

2018

impairment to inventory value was recorded as

$0

and

$0,

respectively. An assessment is made at the end of each fiscal year to determine what slow-moving inventory items, if any, should be deemed obsolete and written down to their estimated net realizable value. For the years ended 

June 30, 2019

and

June 30, 2018,

the expense for slow-moving or obsolete inventory was

$10,317

 and

$0,

respectively.

Property, Plant and Equipment, Policy [Policy Text Block]

Property and Equipment

Property and equipment are stated at cost. Expenditures for maintenance and repairs are charged to earnings as incurred; additions, renewals and leasehold improvements are capitalized. Office furniture and equipment include office fixtures, computers, printers and other office equipment plus software and applicable packaging designs. Leasehold improvements, which are included in plant and equipment, are depreciated over the shorter of the useful life of the improvement and the length of the lease. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation is computed using the straight line method over the estimated useful life of the asset (see Note

5

to the Consolidated Financial Statements). 

Category	Estimated Useful Life (in years)
Plant and equipment:		5	to	10
Furniture and office equipment:		3	to	5
Vehicles		3	to	5

Intangible Assets, Finite-Lived, Policy [Policy Text Block]

Intangible Assets

Intangible assets consist of brand names, domain names, recipes, non-compete agreements and customer lists. Intangible assets with finite lives are amortized over the estimated useful life and are evaluated for impairment at least on an annual basis and whenever events or changes in circumstances indicate that the carrying value

may

not

be recoverable. The Company assesses recoverability by determining whether the carrying value of such assets will be recovered through the discounted expected future cash flows. If the future discounted cash flows are less than the carrying amount of these assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. There was

no

impairment recorded for the year ended

June 30, 2019

or for the year ended

June 30, 2018.

Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]

Goodwill

Goodwill represents the excess of the aggregate purchase price over the fair value of the net assets acquired in a purchase businesses combination. Goodwill is tested for impairment on an annual basis during the

fourth

quarter of our fiscal year, or more frequently if events or changes in circumstances indicate that the carrying amount of goodwill

may

be impaired. The goodwill impairment test is a

two

-step test. Under the

first

step, the fair value of the reporting unit is compared with its carrying value including goodwill. If the fair value of the reporting unit exceeds its carrying value, step

two

does

not

need to be performed. If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the enterprise must perform step

two

of the impairment test. Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation. The residual fair value after this allocation is the implied fair value of the reporting unit goodwill. There was

no

impairment recorded for the years ended

June 30, 2019

and

2018

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

Impairment of Long-Lived Assets

The Company tests long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset

may

not

be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. There was

no

impairment recorded for the years ended

June 30, 2019

or

2018.

Investments and Fair Value of Financial Instruments, Policy [Policy Text Block]

Investments and Fair Value of Financial Instruments

Short-term investments are classified as available-for-sale securities. The Company measures the investments at fair value at period end with any changes in fair value reflected as unrealized gains or (losses) which is included as part of other (expense) income. The Company values its investments in accordance with Accounting Standards Codification ("ASC")

820

– Fair Value Measurements and Disclosures (“ASC

820”

). ASC

820

defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurement. The changes to past practice resulting from the application of ASC

820

relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurement. ASC

820

establishes a fair value hierarchy that distinguishes between: (

1

) market participant assumptions developed based on market data obtained from sources independent of the Company (observable inputs) and (

2

) The Company’s own assumptions about market participant assumptions developed based on the best information available under the circumstances (unobservable inputs). The

three

levels defined by the ASC

820

hierarchy are as follows:

Level

1

– Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level

2

– Inputs other than quoted prices included within Level

1

that are observable for the asset or liability, either directly or indirectly. Level

2

assets include the following: quoted prices for similar assets or 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, and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs).

Level

3

– Unobservable pricing input at the measurement date for the asset or liability. Unobservable inputs shall be used to measure fair value to the extent that observable inputs are

not

available.

In some instances, the inputs used to measure fair value might fall within different levels of the fair value hierarchy. The level in the fair value hierarchy within which the fair value measurement in its entirety falls shall be determined based on the lowest input level that is significant to the fair value measurement in its entirety.

Revenue [Policy Text Block]

Revenue Recognition

Revenue consists of fees earned through management of investment funds, sale of gourmet meat pies and related bakery confections in New Zealand, security alarm system installation and maintenance services in Canada, and wholesale distribution of hair and skin care products. Revenue is accounted for net of sales taxes, sales returns, trade discounts. The performance obligation is satisfied when the product has been shipped and title, risk of loss and rewards of ownership have been transferred. For most of the Company’s product sales or services, these criteria are met at the time the product is shipped, the subscription period commences, or the management fees are accrued. For our Brigadier subsidiary in Canada, the Company operates under contract with an alarm monitoring company that pays a percentage of their recurring monitoring fee to Brigadier in exchange for continued customer service and support functions with respect to each customer maintained under contract by the monitoring company. 

Recently Adopted Accounting Pronouncements -

In

May 2014,

the Financial Accounting Standards Board (“FASB”) issued authoritative guidance that set forth a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The Company adopted this new standard and its related amendments as of

July 1, 2018

using the modified retrospective transition method, whereby the cumulative effect of initially applying the new standard recognized as an adjustment to the opening balance of stockholders equity. Results for reporting periods commencing on or after

July 1, 2018

are presented under the new standard, while prior period amounts are

not

adjusted and continue to be reported under the accounting standards in effect for that prior period. The impact of adoption did

not

have a material effect on our financial results. The adoption of the new standard impacted the identification of separate obligations for certain sales of security systems and related monitoring sales. The Company generates revenue, in part, through contractual monthly recurring fees received for providing ongoing customer support services to monitoring company clientele. The

five

-step process governing contract revenue reporting includes:

1.

Identifying the contract(s) with customers

2.

Identifying the performance obligations in the contract

3.

Determining the transaction price

4.

Allocate the transaction price to the performance obligations in the contract

5.

Recognize revenue when or as the performance obligation is satisfied

Transactions involve security systems that are sold outright to the customer where the Company's performance obligations include customer support services and the sale and installation of the security systems. For such arrangements, the Company allocates a portion of the transaction price to each performance obligation based on a relative stand-alone selling price. Revenue associated with the sale and installation of security systems is recognized once installation is complete, and is reflected as security system revenue in the Consolidated Statements of Operations. Revenue associated with customer support services is recognized as those services are provided, and is included as a component of security system revenue in the Consolidated Statements of Operations, which for the year ended

June 30, 2019,

were approximately

US$352,249,

or approximately

10%

of the total security system revenues. These revenues for the year ended

June 30, 2019

account for approximately

1%

of total consolidated revenues.

None

of the other subsidiaries of the Company generate revenues from long term contracts.

Because the Company has

no

contract with the end user, and the monthly payments for customer support services are made to the Company by the monitoring company who has a contract with the end user, and end user customers are subject to cancellation through

no

control of the Company; therefore,

no

deferred revenues or contingent liability reserves have been established with respect to these contracts. The services are deemed delivered as the obligation is acknowledged on a monthly basis.

Income Tax, Policy [Policy Text Block]

Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. A valuation allowance is provided for deferred tax assets if it is more likely than

not

that these items will either expire before the Company is able to realize their benefits or if future deductibility is uncertain.

When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than

not

that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are

not

offset or aggregated with other positions. Tax positions that meet the more-likely-than-

not

recognition threshold are measured as the largest amount of tax benefit that is more than

50

percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Applicable interest and penalties associated with unrecognized tax benefits are classified as additional income taxes in the statements of operations.

Advertising Cost [Policy Text Block]

Advertising Costs

The Company expenses the cost of advertising as incurred. Marketing and advertising costs for the years ended

June 30, 2019

and

2018

were

$2.9

million and

$3.6

million, respectively.

Comprehensive Income, Policy [Policy Text Block]

Other Comprehensive Income (Loss)

Foreign Currency Translation

We record foreign currency translation adjustments and transaction gains and losses in accordance with ASC

830

-

30,

Foreign Currency Translation

. The accounts of Gourmet Foods use the New Zealand dollar as the functional currency. The accounts of Brigadier Security System use the Canadian dollar as the functional currency. Assets and liabilities are translated at the exchange rate on the balance sheet date, and operating results are translated at the weighted average exchange rate throughout the period. Foreign currency transaction gains and (losses) can also occur if a transaction is settled in a currency other than the entity's functional currency. Accumulated currency translation gains and (losses) are classified as an item of accumulated other comprehensive income (loss) in the stockholders’ equity section of the consolidated balance sheet.

Short-Term Investment Valuation

In

January 2016,

the FASB issued authoritative guidance related to the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. Under the new guidance, equity investments with readily determinable fair values, except those accounted for under the equity method, will be measured at fair value with changes in fair value recognized in earnings rather than other comprehensive income (loss). In addition, this update clarifies the guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from the unrealized losses on certain debt securities. The Company adopted this guidance effective on

July 1, 2018.

See Recent Accounting Pronouncements below related to

July 1, 2018

reclassification of accumulated other comprehensive income to retained earnings. Besides this reclassification there was

no

material impact to Consolidated Financial Statements as a result of the adoption.

Segment Reporting, Policy [Policy Text Block]

Segment Reporting

The Company defines operating segments as components about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performances. The Company allocates its resources and assesses the performance of its sales activities based on the geographic locations of its subsidiaries (Refer to Note

16

of the Consolidated Financial Statements).

Business Combinations Policy [Policy Text Block]

Business Combinations

We allocate the fair value of purchase consideration to the tangible assets acquired, liabilities assumed and intangible assets acquired based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are

not

limited to, future expected cash flows from acquired users, acquired trade names from a market participant perspective, useful lives and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results

may

differ from estimates. During the measurement period, which is

one

year from the acquisition date, we

may

record adjustments to the assets acquired and liabilities assumed. For the years ended

June 30, 2019 

and

2018

a determination was made that

no

adjustments were necessary.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements adopted during the year ended

June 30, 2019

On

July 1, 2018

the Company adopted ASU

2016

-

01

Financial Instruments - Recognition and Measurement of Financial Assets and Financial Liabilities

and Accounting Standards Codification ("ASC")

606

 -

Revenue from Contracts with Customers

("ASC

606"

). A summary of the effects of the initial adoption of ASU

2016

-

01

and ASC

606

follows:

	ASU 2016-01			ASC 606		Total
Increase (decrease):
Assets	$	-		$	-	$	-
Liabilities	$	-		$	-	$	-
Accumulated other comprehensive income	$	(279,951	)	$	-	$	(279,951	)
Retained earnings	$	279,951		$	-	$	279,951

The above (“ASU

2016

-

01”

) entry reclasses accumulated gains from changes in short-term investment valuations previously recorded in comprehensive income to retained earnings. ASU

2016

-

01

requires that unrealized gains and losses arising from changes in market values of our investments in equity securities be recorded in the condensed consolidated statements of operations rather than in accumulated other comprehensive income (loss) on the balance sheet. Prior to

July 1, 2018 

investment gains and losses related to equity securities were reflected on the condensed consolidated statements of comprehensive income.

The Company has reviewed new accounting pronouncements issued between

September 28, 2018,

the filing date of our most recent prior Annual Report on Form

10

-K, and the filing date of this Annual Report on Form

10

-K, and has determined that

no

new pronouncements, apart from Topic

842

described below, issued are relevant to the Company, and/or have, or will have, a material impact on the Company’s consolidated financial position, results of operations or disclosure requirements.

On

July 1, 2019,

the Company adopted FASB ASU

2016

-

02,

Leases (Topic

842

), which supersedes the requirements in Topic

840,

Leases. The objective of Topic

842

is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. The core principle of Topic

842

is that a lessee should recognize the assets and liabilities that arise from leases. It is expected that assets and liabilities will increase based on the present value of remaining lease payments for leases in place at the adoption date; however, based on the current level of long term leases in place, this is

not

material to the Company’s results of operations or financial position. See Note

15

for information on existing leases.

XML

Note 14 - Income Taxes

12 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Income Tax Disclosure [Text Block]

NOTE

14.

         INCOME TAXES 

The following table summarizes income before income taxes:

	Years Ended June 30,
	2019		2018
U.S.	$	414,961	$	2,276,390
Foreign		193,902		224,892
Income before income taxes	$	608,863	$	2,501,282

Income Tax Provision 

Provision for income tax as listed on the Consolidated Statements of Operations for the years ended

June 30, 2019

and

2018

are

$347,014

and

$766,596,

respectively. 

Provision for taxes consisted of the following:

	Years Ended June 30,
	201 9		201 8
U.S. operations	$	183,025	$	658,293
Foreign operations		163,989		108,303
Total	$	347,014	$	766,596

Provisions for income tax consisted of the following as of the years ended:

For the year ended:	June 30, 201 9			June 30, 201 8
Current:
Federal	$	149,239		$	572,227
States		36,183			(510,765	)
Foreign		188,009			140,142
Total current		373,431			201,604
Deferred:
Federal		(10,572	)		502,364
States		8,175			94,467
Foreign		(24,020	)		(31,839	)
Total deferred		(26,417	)		564,992
Total	$	347,014		$	766,596

Tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets for the years ended

June 30, 2019

and

2018

are presented below:

For the year ended:	June 30, 201 9			June 30, 201 8
Deferred tax assets:
Property and equipment and intangible assets - U.S.	$	619,483		$	745,420
Net operating loss		3,299			3,646
Capital loss carryover		167			10,337
Accruals, reserves and other - foreign		5,674			13,494
Accruals, reserves and other - U.S.		233,646			104,607
Gross deferred tax assets		862,269			877,504
Less valuation allowance		(2,573	)		(12,384	)
Total deferred tax assets	$	859,696		$	865,120
Deferred tax liabilities:
Intangible assets - foreign	$	(176,578	)	$	(208,419	)
Total deferred tax liabilities	$	(176,578	)	$	(208,419	)

The Company’s accounting for deferred taxes involves the evaluation of a number of factors concerning the realizability of the Company’s net deferred tax assets. The Company primarily considered such factors as the Company’s history of operating losses; the nature of the Company’s deferred tax assets and the timing, likelihood and amount, if any, of future taxable income during the periods in which those temporary differences and carryforwards become deductible.  At present, the Company does believe that it is more likely than

not

that the deferred tax assets will be realized, however, a partial valuation allowance was established for capital loss carryforwards. The valuation allowance decreased by

$9,811

 during the year ended

June 30, 2019

and decreased by

$16,693

during the year ended

June 30, 2018.

On

December 22, 2017,

the Tax Cuts and Jobs Act (TCJA) was enacted into law, which significantly changes existing U.S. tax law and includes numerous provisions that affect our business, such as imposing a

one

-time transition tax on deemed repatriation of deferred foreign income, reducing the U.S. federal statutory tax rate, and adopting a territorial tax system. Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Act, we made reasonable estimates of the effects and recorded provisional amounts in our financial statements as of

June 30, 2018.

We are required to recognize the effect of the tax law changes in the period of enactment, such as determining the transition tax, re-measuring our U.S. deferred tax assets and liabilities as well as reassessing the net realizability of our deferred tax assets and liabilities. In

December 2017,

the SEC staff issued Staff Accounting Bulletin

No.

118,

 

Income Tax Accounting Implications of the Tax Cuts and Jobs Act 

(SAB

118

), which allowed us to record provisional amounts during a measurement period

not

to extend beyond

one

year of the enactment date. As a result, we previously provided a provisional estimate of the effect of the Tax Act in our financial statements. In the

fourth

quarter of fiscal year

2019,

we completed our analysis to determine the effect of the Tax Act and recorded immaterial adjustments as of

June 30, 2019.

The TCJA reduced the U.S. federal statutory tax rate from 

35%

 to 

21%

 effective

January 1, 2018.

As a result, net deferred tax assets were re-measured, which resulted in a reduction of our deferred tax assets by approximately 

$504,905

for the tax year ended

June 30, 2018.

Furthermore, the TCJA includes a provision to tax global intangible low-taxed income (“GILTI”) of foreign subsidiaries. The GILTI is broadly the excess income of foreign subsidiaries over a

10%

rate of routine return on tangible business assets. The US taxable GILTI amount is subject to a

50%

GILTI deduction allowance, with the new US federal corporate tax of

21%,

the effective US tax rate on GILTI is

10.5%.

  The GILTI is effective for taxable years of foreign corporation beginning after

December 31, 2017.

Due to the aggregated positive E&P of the foreign subsidiaries there is GILTI inclusion for

2018.

Income tax expense (benefit) for the years ended

June 30, 2019

and

June 30, 2018

differed from the amounts computed by applying the statutory federal income tax rate of

21.00%

and

27.50%,

respectively, to pretax income (loss) as a result of the following:

For the year ended:	June 30, 2019			June 30, 2018
Federal tax expense (benefit) at statutory rate	$	127,861		$	687,853
State income taxes		36,760			(437,242	)
Permanent differences		112,814			(46,251	)
Deferred tax impact of the Tax Act		-			504,905
U.S. toll charge (net of FTC)		-			1,112
Foreign tax credit		(43,930	)
Change in valuation allowance		(9,761	)		9,761
Foreign rate differential		123,270			46,458
Total tax expense	$	347,014		$	766,596

For the year ended:	June 30, 2019			June 30, 2018
	%			%
Federal tax expense (benefit) at statutory rate		21.00	%		27.50	%
State income taxes		6.04	%		(17.48	%)
Permanent differences		18.52	%		(1.85	%)
Deferred tax impact of the Tax Act		-			20.19	%
Foreign rate differential		20.25	%		1.86	%
U.S. toll charge (net of FTC)		-			0.04	%
Foreign tax credit		(7.22	%)		-
Change in valuation allowance		(1.60	%)		0.39	%
Total tax expense		56.99	%		30.65	%

Tax positions are evaluated in a

two

-step process. The Company

first

determines whether it is more likely than

not

that a tax position will be sustained upon examination. If a tax position meets the more-likely-than-

not

recognition threshold it is then measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than

50%

likely of being realized upon ultimate settlement. The aggregate changes in the balance of gross unrecognized tax benefits, which includes interest and penalties, for the years ended

June 30, 2019

and

2018

are as follows:

Balance at June 30, 201 8	$	264,543
Additions based on tax positions taken during a prior period		12,597
Reductions based on tax positions taken during a prior period		-
Additions based on tax positions taken during the current period		-
Reductions based on tax positions taken during the current period		-
Reductions related to settlement of tax matters		-
Reductions related to a lapse of applicable statute of limitations		-
Balance at June 30, 201 9	$	277,140

The Company files income tax returns in the United States, and various state and foreign jurisdictions. The federal, state and foreign income tax returns are subject to tax examinations for the tax years

2015

through

2018

as of year ended

June 30, 2019.

To the extent the Company has tax attribute carry forwards, the tax years in which the attribute was generated

may

still be adjusted upon examination by the U.S. Internal Revenue Service, state or foreign tax authorities to the extent utilized in a future period.  There were

no

ongoing examinations by taxing authorities as of

June 30, 2019.

The Company had

$251,946

of unrecognized tax benefits as of

June 30, 2019

and

$251,946

as of

June 30, 2018

that if recognized would affect the effective tax rate.  The Company does

not

anticipate a significant change to its unrecognized tax benefits in the year ending

June 30, 2019.

The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of

June 30, 2019,

and

June 30, 2018,

the Company accrued and recognized as a liability

$25,195

and

$12,597,

respectively, of interest and penalties related to uncertain tax positions.  

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Note 2 - Summary of Significant Accounting Policies (Details Textual)	12 Months Ended
	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)
Accounts Receivable, Allowance for Credit Loss, Ending Balance	$ 2,075	$ 51,747
Allowance for Doubtful Accounts Receivable. Related Parties	0	0
Asset Impairment Charges, Total	0	0
Inventory Write-down	10,317	0
Impairment of Intangible Assets, Finite-lived	0	0
Goodwill, Impairment Loss	0	0
Impairment of Long-Lived Assets Held-for-use	0	0
Advertising Expense	2,900,000	$ 3,600,000
Security Alarm Monitoring Customer Support Services [Member]
Revenue from Contract with Customer, Including Assessed Tax	$ 352,249
Percentage of Total Revenue from Services Under Contract Recognized As Provided	10.00%
Percentage of Consolidated Revenue from Services Under Contract, Recognized As Provided	1.00%
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Brigadier [Member]
Concentration Risk, Percentage	46.00%	41.00%
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Brigadier [Member] | Major Customer 1 [Member]
Concentration Risk, Percentage	12.00%
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Gourmet Foods [Member]
Concentration Risk, Percentage		0.00%
Number of Major Customers	3
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Gourmet Foods [Member] | Major Customer 1 [Member] | Grocery Industry [Member]
Concentration Risk, Percentage	22.00%	21.00%
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Gourmet Foods [Member] | Major Customer 1 [Member] | Gasoline Convenience Store Sector [Member]
Concentration Risk, Percentage	43.00%	41.00%
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Gourmet Foods [Member] | Major Customer 2 [Member] | Grocery Industry [Member]
Concentration Risk, Percentage	12.00%	12.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Brigadier [Member]
Concentration Risk, Percentage	37.00%	35.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Gourmet Foods [Member]
Concentration Risk, Percentage	0.00%	0.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Gourmet Foods [Member] | Grocery Industry [Member]
Number of Major Customers	0
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Gourmet Foods [Member] | Independent Retailers Sector [Member]
Number of Major Customers	0
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Gourmet Foods [Member] | Major Customer 1 [Member] | Grocery Industry [Member]
Concentration Risk, Percentage	28.00%	33.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Gourmet Foods [Member] | Major Customer 2 [Member] | Grocery Industry [Member]
Concentration Risk, Percentage	19.00%	16.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | The Original Sprout LLC [Member]
Number of Major Customers	3
Customer Concentration Risk [Member] | Accounts Receivable [Member] | The Original Sprout LLC [Member] | Major Customer 1 [Member]
Concentration Risk, Percentage	25.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | The Original Sprout LLC [Member] | Major Customer 2 [Member]
Concentration Risk, Percentage	17.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | The Original Sprout LLC [Member] | Major Customer 3 [Member]
Concentration Risk, Percentage	12.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | The Original Sprout LLC [Member] | Three Major Customers [Member]
Concentration Risk, Percentage	54.00%

XML

Note 3 - Basic and Diluted Net Income Per Share - Basic and Diluted Earnings Per Share (Details) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Net income (loss) available to common shareholders, basic	$ 261,849	$ 1,734,686
Shares, basic (in shares)	32,588,418	29,559,139
Basic income per share (in dollars per share)	$ 0.01	$ 0.06
Effect of dilutive securities, shares (in shares)	5,709,741	8,739,020
Effect of dilutive securities, per share (in dollars per share)
Net income (loss) available to common shareholders, diluted	$ 261,849	$ 1,734,686
Shares, diluted (in shares)	38,298,159	38,298,159
Diluted income (loss) per share (in dollars per share)	$ 0.01	$ 0.05

XML

Note 6 - Intangible Assets (Details Textual) - USD ($)				12 Months Ended
	Dec. 18, 2017	Jun. 02, 2016	Aug. 11, 2015	Jun. 30, 2019	Jun. 30, 2018
Amortization of Intangible Assets, Total				$ 335,508	$ 234,046
Gourmet Foods Acquisition [Member] | Customer Relationships [Member]
Finite-lived Intangible Assets Acquired			$ 66,153
Finite-Lived Intangible Assets, Remaining Amortization Period			10 years
Gourmet Foods Acquisition [Member] | Brand Name [Member]
Finite-lived Intangible Assets Acquired			$ 61,429
Finite-Lived Intangible Assets, Remaining Amortization Period			10 years
Gourmet Foods Acquisition [Member] | Domain Name [Member]
Finite-lived Intangible Assets Acquired			$ 21,601
Finite-Lived Intangible Assets, Remaining Amortization Period			5 years
Gourmet Foods Acquisition [Member] | Recipes [Member]
Finite-lived Intangible Assets Acquired			$ 21,601
Finite-Lived Intangible Assets, Remaining Amortization Period			5 years
Brigadier Security Systems Acquisition [Member] | Customer Relationships [Member]
Finite-lived Intangible Assets Acquired		$ 434,099
Finite-Lived Intangible Assets, Remaining Amortization Period		10 years
Brigadier Security Systems Acquisition [Member] | Brand Name [Member]
Finite-lived Intangible Assets Acquired		$ 340,694
Finite-Lived Intangible Assets, Remaining Amortization Period		10 years
Brigadier Security Systems Acquisition [Member] | Domain Name [Member]
Finite-lived Intangible Assets Acquired		$ 15,312
Finite-Lived Intangible Assets, Remaining Amortization Period		5 years
Brigadier Security Systems Acquisition [Member] | Noncompete Agreements [Member]
Finite-lived Intangible Assets Acquired		$ 84,982
Finite-Lived Intangible Assets, Remaining Amortization Period		5 years
The Original Sprout LLC [Member] | Customer Relationships [Member] | Kahnalytics [Member]
Finite-lived Intangible Assets Acquired	$ 200,000
Finite-Lived Intangible Assets, Remaining Amortization Period	7 years
The Original Sprout LLC [Member] | Brand Name [Member] | Kahnalytics [Member]
Finite-lived Intangible Assets Acquired	$ 740,000
The Original Sprout LLC [Member] | Recipes [Member] | Kahnalytics [Member]
Finite-lived Intangible Assets Acquired	$ 1,200,000
Finite-Lived Intangible Assets, Remaining Amortization Period	8 years
The Original Sprout LLC [Member] | Noncompete Agreements [Member] | Kahnalytics [Member]
Finite-lived Intangible Assets Acquired	$ 190,000
Finite-Lived Intangible Assets, Remaining Amortization Period	5 years

XML

Note 14 - Income Taxes (Details Textual) - USD ($)	6 Months Ended	12 Months Ended
	Dec. 31, 2017	Jun. 30, 2019	Jun. 30, 2018
Income Tax Expense (Benefit), Total		$ 347,014	$ 766,596
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount		$ 9,811	$ 16,693
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	35.00%	21.00%	27.50%
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount			$ 504,905
Unrecognized Tax Benefits that Would Impact Effective Tax Rate		251,946	251,946
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense, Total		$ 25,195	$ 12,597
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member]
Open Tax Year		2015 2016 2017 2018

XML

Note 12 - Business Combinations - Acquisition of the Assets of The Original Sprout, LLC (Details) - USD ($)		Jun. 30, 2019	Jun. 30, 2018	Dec. 18, 2017
Goodwill		$ 915,790	$ 915,790
Kahnalytics [Member] | The Original Sprout LLC [Member]
Inventory				$ 371,866
Accounts receivable				288,804
Furniture, fixtures and equipment				1,734
Pre-payments of inventory				8,775
Discount on installment payments**	[1]			64,176
Intangible assets*	[2]			2,330,000
Goodwill				416,817
Total Purchase Price				$ 3,482,172

[1] This amount represents a discount on installment payments and was charged to interest expense.

[2] See Note 6 for further detail of intangible assets acquired.

XML

Note 10 - Related Party Transactions - Notes Payable (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Notes payable	$ 603,500	$ 603,500
Notes Payable Due on December 31, 2012 [Member]
Notes payable	3,500	3,500
Notes Payable Due on May 25, 2022 [Member]
Notes payable	250,000	250,000
Notes Payable Due on April 8, 2022 [Member]
Notes payable	$ 350,000	$ 350,000

XML

Note 8 - Goodwill (Details Textual) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Goodwill, Ending Balance	$ 915,790	$ 915,790
Goodwill, Impairment Loss	$ 0	$ 0

XML

Note 7 - Other Assets (Details Textual)	Jun. 30, 2019 NZD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)
Other Assets, Current		$ 546,105	$ 374,617
Available-for-sale Securities, Total		3,800,000	3,200,000
Restricted Cash and Cash Equivalents, Total	$ 20,000	13,437	13,536
Other Assets, Noncurrent, Total		523,607	532,165
Wainwright [Member]
Assets, Noncurrent, Total		523,607	532,165
Cost Method Investments		$ 500,000	500,000
Cost Method Investment, Ownership Percentage	10.00%	10.00%
Other Assets, Noncurrent, Total		$ 23,607	$ 32,165

XML

Note 14 - Income Taxes - Unrecognized Tax Benefits (Details)	12 Months Ended
	Jun. 30, 2019 USD ($)
Balance	$ 264,543
Additions based on tax positions taken during a prior period	12,597
Reductions based on tax positions taken during a prior period
Additions based on tax positions taken during the current period
Reductions based on tax positions taken during the current period
Reductions related to settlement of tax matters
Reductions related to a lapse of applicable statute of limitations
Balance	$ 277,140

XML

Note 16 - Segment Reporting - Reconciliation of Assets by Segment (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Assets	$ 21,253,608	$ 23,101,149
Property, plant, and equipment	2,032,671	2,010,927
Accumulated depreciation	(1,275,657)	(930,456)
Net property, plant and equipment	757,014	1,080,471
Corporate Segment [Member]
Assets	2,730,805	2,123,048
Property, plant, and equipment	14,305	14,305
U.S.A Investment Fund Management [Member]
Assets	10,878,549	13,563,773
Property, plant, and equipment
USA Beauty Products and Other [Member]
Assets	3,780,278	3,739,979
Property, plant, and equipment	10,745	5,244
New Zealand Food Industry Segment [Member]
Assets	1,838,800	1,959,486
Property, plant, and equipment	1,659,186	1,627,545
Canada Security Alarm [Member]
Assets	2,025,176	1,714,863
Property, plant, and equipment	$ 348,435	$ 363,833

XML

Note 10 - Related Party Transactions

12 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Debt Disclosure [Text Block]

NOTE

10.

        RELATED PARTY TRANSACTIONS

Notes Payable - Related Parties

Current related party notes payable consist of the following:

	June 30, 201 9		June 30, 201 8
Notes payable to shareholder, interest rate of 8%, unsecured and payable on December 31, 2012 (past due)		3,500		3,500
Notes payable to shareholder, interest rate of 4%, unsecured and payable on May 25, 2022		250,000		250,000
Notes payable to shareholder, interest rate of 4%, unsecured and payable on April 8, 2022		350,000		350,000
	$	603,500	$	603,500

Interest expense for all related party notes for the years ended

June 30, 2019

and

2018

was

$24,280

and

$24,280,

respectively. 

Wainwright - Related Party Transactions

The Funds managed by USCF and USCF Advisers are deemed by management to be related parties. The Company’s Wainwright revenues, totaling

$15.0

million and

$18.7

million for the years ended

June 30, 2019

and

2018,

respectively, were earned from these related parties. Accounts receivable, totaling

$1.0

million and

$1.5

million as of

June 30, 2019

and

June 30, 2018,

respectively, were owed from these related parties. Fund expense waivers, totaling

$0.3

million and

$0.7

million and fund expense limitation amounts, totaling

$0.2

million and

$0.5

million, for the years ended

June 30, 2019

and

2018,

respectively, were incurred on behalf of these related parties. Waivers payable, totaling

$0.3

million and

$0.7

million as of

June 30, 2019

and

June 30, 2018,

respectively, were owed to these related parties. Fund expense waivers and fund expense limitation obligations are defined under Note

15

to the Consolidated Financial Statements.

XML

Note 6 - Intangible Assets

12 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

NOTE

6.

          INTANGIBLE ASSETS

Intangible assets consisted of the following:

	June 30, 201 9			June 30, 201 8
Customer relationships	$	700,252		$	700,252
Brand name		1,142,122			1,142,122
Domain name		36,913			36,913
Recipes		1,221,601			1,221,601
Non-compete agreement		274,982			274,982
Total		3,375,870			3,375,870
Less : accumulated amortization		(716,147	)		(380,639	)
Net intangibles	$	2,659,723		$	2,995,231

CUSTOMER RELATIONSHIP

On

August 11, 2015,

the Company acquired Gourmet Foods. The fair value on the acquired customer relationships was estimated to be

$66,153

and is amortized over the remaining useful life of

10

years. On

June 2, 2016,

the Company acquired Brigadier Security Systems. The fair value on the acquired customer relationships was estimated to be

$434,099

and is amortized over the remaining useful life of

10

years. On

December 18, 2017

the Company’s wholly-owned subsidiary, Kahnalytics, Inc., acquired the assets of Original Sprout LLC. The fair value of the acquired customer relationships was determined to be

$200,000

and is amortized over the remaining useful life of

7

years.

	June 30, 2019			June 30, 2018
Customer relationships	$	700,252			700,252
Less: accumulated amortization		(203,492	)		(124,895	)
Total customer relationships, net	$	496,760			575,357

BRAND NAME

On

August 11, 2015,

the Company acquired Gourmet Foods. The fair value on the acquired brand name was estimated to be

$61,429

and is amortized over the remaining useful life of

10

years. On

June 2, 2016,

the Company acquired Brigadier Security Systems. The fair value on the acquired brand name was estimated to be

$340,694

and is amortized over the remaining useful life of

10

years. On

December 18, 2017

the Company’s wholly-owned subsidiary, Kahnalytics, Inc., acquired the assets of Original Sprout LLC. The fair value of the acquired brand name was determined to be

$740,000

and is considered to have an indefinite life. Unlike the brand names Gourmet Foods and Brigadier Security Systems, Original Sprout is an actual product name and recognized associated brand that is identifiable to consumers of the product and is the basis of the value proposition. That brand name will forever be associated with the product offering unless and until such time in the future as the Company

may

elect to discontinue the use of the brand and move towards establishment of an alternative product offering. Therefore, the Company will test for impairment of the brand name "Original Sprout" at each reporting interval with 

no

amortization recognized.

	June 30, 201 9			June 30, 201 8
Brand name	$	1,142,122		$	1,142,122
Less: accumulated amortization		(129,084	)		(88,872	)
Total brand name, net	$	1,013,038		$	1,053,250

DOMAIN NAME

On

August 11, 2015,

the Company acquired Gourmet Foods, Ltd. The fair value on the acquired domain name was estimated to be

$21,601

and is amortized over the remaining useful life of

5

years. On

June 2, 2016,

the Company acquired Brigadier Security Systems. The fair value on the acquired domain name was estimated to be

$15,312

and is amortized over the remaining useful life of

5

years.

	June 30, 201 9			June 30, 201 8
Domain name	$	36,913		$	36,913
Less: accumulated amortization		(26,341	)		(18,958	)
Total brand name, net	$	10,572		$	17,955

RECIPES AND FORMULAS

On

August 11, 2015,

the Company acquired Gourmet Foods. The fair value on the recipes was estimated to be

$21,601

and is amortized over the remaining useful life of

5

years. On

December 18, 2017

the Company’s wholly-owned subsidiary, Kahnalytics, Inc., acquired the assets of Original Sprout LLC. The fair value of the acquired recipes and formulas was determined to be

$1,200,000

and is amortized over the remaining useful life of

8

years. 

	June 30, 201 9			June 30, 201 8
Recipes and formulas	$	1,221,601		$	1,221,601
Less: accumulated amortization		(246,622	)		(92,303	)
Total recipes and formulas, net	$	974,979		$	1,129,298

NON-COMPETE AGREEMENT

On

June 2, 2016,

the Company acquired Brigadier Security Systems. The fair value on the acquired non-compete agreement was estimated to be

$84,982

and is amortized over the remaining useful life of

5

years. On

December 18, 2017

the Company’s wholly-owned subsidiary, Kahnalytics, Inc., acquired the assets of Original Sprout LLC. The fair value of the acquired non-compete agreement was determined to be

$190,000

and is amortized over the remaining useful life of

5

years.

	June 30, 201 9			June 30, 201 8
Non-compete agreement	$	274,982		$	274,982
Less: accumulated amortization		(110,608	)		(55,612	)
Total non-compete agreement, net	$	164,374		$	219,370

AMORTIZATION EXPENSE

The total amortization expense for intangible assets for the years ended

June 30, 2019

and

June 30, 2018

was

$335,508

and

$234,046,

respectively.

Estimated amortization expenses of intangible assets for the next

five twelve

-month periods ending

June 30,

are as follows:

Years Ending June 30,	Expense
2020	$	335,508
2021		326,034
2022		306,809
2023		286,507
2024		268,809
Thereafter		1,136,056
Total	$	2,659,723

XML

Consolidated Balance Sheets (Parentheticals) - $ / shares	Jun. 30, 2019	Jun. 30, 2018
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	900,000,000	900,000,000
Common stock, issued (in shares)	37,237,519	29,559,139
Common stock, outstanding (in shares)	37,237,519	29,559,139
Series B Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized (in shares)	50,000,000	50,000,000
Preferred stock, issued (in shares)	53,032	436,951
Preferred stock, outstanding (in shares)	53,032	436,951

XML

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ (261,849)	$ (1,734,686)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	702,320	576,674
Deferred taxes	(26,417)	564,992
Bad debt expense	2,075	51,747
Unrealized loss on investments	1,995	359,666
Realized (gain) on sale of investments	(30,718)	(3,592)
(Gain) on disposal of equipment	(3,369)	(8,364)
(Increase) decrease in current assets:
Accounts receivable, net	128,105	7,137
Accounts receivable - related party	421,013	304,112
Prepaid income taxes and tax receivable	421,845	(906,085)
Inventories	(79,127)	(162,388)
Other current assets	(161,254)	4,045
Increase (decrease) in current liabilities:
Accounts payable and accrued expenses	(425,690)	406,126
Expense waiver - related party	(336,829)	73,557
Net cash provided by operating activities	875,798	3,002,313
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash paid for acquisition of business assets	(1,205,000)	(2,277,172)
Purchase of equipment - net of disposals	(50,165)	(318,064)
Sale of investments	3,230,891	1,372,019
Purchase of investments	(3,754,132)	(1,109,596)
Net cash used in investing activities	(1,778,406)	(2,332,813)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds of equipment loan		178,604
Repayment of equipment loan	(108,898)	(67,660)
Net cash (used in) provided by financing activities	(108,898)	110,944
Effect of exchange rate change on cash, cash equivalents and restricted cash	(30,893)	13,184
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(1,042,399)	793,628
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING BALANCE	7,537,650	6,744,022
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, ENDING BALANCE	6,495,251	7,537,650
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Interest paid	29,493
Income taxes paid	202,363	965,272
Purchase consideration payable (see Note 12)		$ 1,205,000

XML

Note 6 - Intangible Assets (Tables)

12 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Indefinite-Lived Intangible Assets [Table Text Block]

	June 30, 201 9			June 30, 201 8
Customer relationships	$	700,252		$	700,252
Brand name		1,142,122			1,142,122
Domain name		36,913			36,913
Recipes		1,221,601			1,221,601
Non-compete agreement		274,982			274,982
Total		3,375,870			3,375,870
Less : accumulated amortization		(716,147	)		(380,639	)
Net intangibles	$	2,659,723		$	2,995,231

	June 30, 2019			June 30, 2018
Customer relationships	$	700,252			700,252
Less: accumulated amortization		(203,492	)		(124,895	)
Total customer relationships, net	$	496,760			575,357

	June 30, 201 9			June 30, 201 8
Brand name	$	1,142,122		$	1,142,122
Less: accumulated amortization		(129,084	)		(88,872	)
Total brand name, net	$	1,013,038		$	1,053,250

	June 30, 201 9			June 30, 201 8
Domain name	$	36,913		$	36,913
Less: accumulated amortization		(26,341	)		(18,958	)
Total brand name, net	$	10,572		$	17,955

	June 30, 201 9			June 30, 201 8
Recipes and formulas	$	1,221,601		$	1,221,601
Less: accumulated amortization		(246,622	)		(92,303	)
Total recipes and formulas, net	$	974,979		$	1,129,298

	June 30, 201 9			June 30, 201 8
Non-compete agreement	$	274,982		$	274,982
Less: accumulated amortization		(110,608	)		(55,612	)
Total non-compete agreement, net	$	164,374		$	219,370

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

Years Ending June 30,	Expense
2020	$	335,508
2021		326,034
2022		306,809
2023		286,507
2024		268,809
Thereafter		1,136,056
Total	$	2,659,723

XML

Note 10 - Related Party Transactions (Tables)

12 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Debt [Table Text Block]

	June 30, 201 9		June 30, 201 8
Notes payable to shareholder, interest rate of 8%, unsecured and payable on December 31, 2012 (past due)		3,500		3,500
Notes payable to shareholder, interest rate of 4%, unsecured and payable on May 25, 2022		250,000		250,000
Notes payable to shareholder, interest rate of 4%, unsecured and payable on April 8, 2022		350,000		350,000
	$	603,500	$	603,500

XML

Note 15 - Commitments and Contingencies (Tables)

12 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

Year Ended June 30,	Lease Amount
2020	$	412,025
2021		384,248
2022		243,412
2023		206,502
2024		109,958
2025		584
Total minimum lease commitment	$	1,356,729

XML

Note 3 - Basic and Diluted Net Loss Per Share (Tables)

12 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	For the year ended June 30, 201 9
	Net Income		Shares		Per Share
Basic income per share:
Net income available to common shareholders	$	261,849		32,588,418	$	0.01
Effect of dilutive securities		-		-		-
Preferred stock Series B		-		5,709,741		-
Diluted income per share	$	261,849		38,298,159	$	0.01

	For the year ended June 30, 201 8
	Net Income		Shares		Per Share
Basic income per share:
Net income available to common shareholders	$	1,734,686		29,559,139	$	0.06
Effect of dilutive securities		-		-		-
Preferred stock Series B		-		8,739,020		-
Diluted income per share	$	1,734,686		38,298,159	$	0.05

XML

Note 16 - Segment Reporting

12 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

NOTE

16.

         SEGMENT REPORTING

With the acquisition of Wainwright Holdings, Gourmet Foods, Ltd., Brigadier, and the launch of the Original Sprout business unit of Kahnalytics, the Company has identified

four

segments for its products and services; U.S.A. investment fund management, U.S.A. beauty products, New Zealand food industry and Canada security alarm systems. Our reportable segments are business units located in different global regions. The Company’s operations in the U.S.A. include the manufacture and wholesale distribution of hair and skin care products by Original Sprout and the income derived from management of various investment funds by our subsidiary Wainwright. In New Zealand operations include the production, packaging and distribution on a commercial scale of gourmet meat pies and related bakery confections through our wholly owned subsidiary Gourmet Foods, Ltd. and in Canada we provide security alarm system installation and maintenance services to residential and commercial customers sold through our wholly owned subsidiary Brigadier. Separate management of each segment is required because each business unit is subject to different operational issues and strategies due to their particular regional location. The Company accounts for intra-company sales and expenses as if the sales or expenses were to

third

parties and eliminates them in the consolidation. Amounts are adjusted for currency translation as of the balance sheet date and presented in US dollars.

The following table presents a summary of identifiable assets as of

June 30, 2019

and

June 30, 2018:

	As of June 30, 201 9		As of June 30, 201 8
Identifiable assets:
Corporate headquarters	$	2,730,805	$	2,123,048
U.S.A. : fund management		10,878,549		13,563,773
U.S.A. : beauty products		3,780,278		3,739,979
New Zealand: food industry		1,838,800		1,959,486
Canada: security systems		2,025,176		1,714,863
Consolidated	$	21,253,608	$	23,101,149

The following table presents a summary of operating information for the years ended

June 30, 2019

and

June 30, 2018:

	Year Ended June 30, 201 9			Year Ended June 30, 201 8
Revenues:
U.S.A. : beauty products	$	3,621,246		$	1,694,534
U.S.A. : investment fund management		15,021,439			18,744,313
New Zealand : food industry		4,747,358			4,968,158
Canada : security systems		3,558,580			3,303,584
Consolidated	$	26,948,623		$	28,710,589
Net income (loss) after taxes:
Corporate headquarters	$	(1,223,930	)	$	(744,992	)
U.S.A. : beauty products		406,963			42,702	)
U.S.A. : investment fund management		687,755			1,950,711
New Zealand : food industry		(13,326	)		99,398
Canada : security systems		404,387			386,867
Consolidated	$	261,849		$	1,734,686

The following table presents a summary of net capital expenditures for the year ended

June 30:

	201 9			201 8
Capital expenditures:
U.S.A. : corporate headquarters	$	-		$	495
U.S.A. : beauty products		5,501			2,707
U.S.A.: investment fund management		-			-
New Zealand: food industry		48,856			165,414
Canada: security systems		(4,192	)		149,449
Consolidated	$	50,165		$	318,064

The following table represents property, plant and equipment in use at each of the Company's locations as of

June 30:

	201 9			201 8
Asset Location:
U.S.A. : corporate headquarters	$	14,305		$	14,305
U.S.A. : beauty products		10,745			5,244
U.S.A.: investment fund management		-			-
New Zealand: food industry		1,659,186			1,627,545
Canada: security systems		348,435			363,833
Total All Locations		2,032,671			2,010,927
Less accumulated depreciation		(1,275,657	)		(930,456	)
Net property, plant and equipment	$	757,014		$	1,080,471

XML

Note 13 - Stockholders' Equity (Details Textual)	Feb. 07, 2019 shares	Nov. 17, 2017	Jun. 30, 2019 shares
Conversion of Stock, Shares Issued	7,678,380
Series B Convertible Preferred Stock [Member]
Convertible Preferred Stock, Shares Issued upon Conversion			20
Conversion of Stock, Shares Converted	383,919
Preferred Stock, Shares Outstanding, Ending Balance			53,032
Reverse Stock Split [Member]
Stockholders' Equity Note, Stock Split, Conversion Ratio		30

XML

Note 11 - Equipment Loans (Details Textual)	12 Months Ended
	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2019 CAD ($)
Notes Payable, Total	$ 87,297		$ 114,292
Notes Payable, Current, Total	26,241	$ 46,705
Notes Payable, Noncurrent, Total	61,057	149,491
Interest Expense, Debt, Total	$ 5,197	$ 12,662

XML

Note 14 - Income Taxes - Provision for Taxes (Details) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
U.S. operations	$ 183,025	$ 658,293
Foreign operations	163,989	108,303
Total	347,014	766,596
Current:
Federal	149,239	572,227
States	36,183	(510,765)
Foreign	188,009	140,142
Total current	373,431	201,604
Deferred:
Federal	(10,572)	502,364
States	8,175	94,467
Foreign	(24,020)	(31,839)
Total deferred	(26,417)	564,992
Total	$ 347,014	$ 766,596

XML

Note 2 - Summary of Significant Accounting Policies - Useful Life of Property, Plant, and Equipment (Details)	12 Months Ended
	Jun. 30, 2019
Minimum [Member] | Machinery and Equipment [Member]
Property, plant, and equipment, useful life (Year)	5 years
Minimum [Member] | Furniture and Fixtures [Member]
Property, plant, and equipment, useful life (Year)	3 years
Minimum [Member] | Vehicles [Member]
Property, plant, and equipment, useful life (Year)	3 years
Maximum [Member] | Machinery and Equipment [Member]
Property, plant, and equipment, useful life (Year)	10 years
Maximum [Member] | Furniture and Fixtures [Member]
Property, plant, and equipment, useful life (Year)	5 years
Maximum [Member] | Vehicles [Member]
Property, plant, and equipment, useful life (Year)	5 years

XML

Note 5 - Property and Equipment (Details Textual) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Depreciation, Total	$ 366,812	$ 342,628

XML

Note 17 - Subsequent Events (Details Textual) - Subsequent Event [Member]	Aug. 15, 2019 shares	Jul. 02, 2019 USD ($)	Jul. 02, 2019 CAD ($)	Jul. 02, 2019 CAD ($)
Purchase of Office Facility and Land Price Consideration		$ 572,858	$ 750,000
Payments to Acquire Property, Plant, and Equipment, Total		171,858	$ 225,000
Maximum Common Stock Shares Issued For Engagement	175,000
Loans Payable [Member]
Debt Instrument, Face Amount		$ 401,000		$ 525,000
Debt Instrument, Term		5 years	5 years
Debt Instrument, Interest Rate, Stated Percentage		4.14%		4.14%

XML

Note 14 - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Property and equipment and intangible assets - U.S.	$ 619,483	$ 745,420
Net operating loss	3,299	3,646
Capital loss carryover	167	10,337
Accruals, reserves and other - foreign	5,674	13,494
Accruals, reserves and other - U.S.	233,646	104,607
Gross deferred tax assets	862,269	877,504
Less valuation allowance	(2,573)	(12,384)
Total deferred tax assets	859,696	865,120
Intangible assets - foreign	(176,578)	(208,419)
Total deferred tax liabilities	$ (176,578)	$ (208,419)

XML

Note 15 - Commitments and Contingencies - Operating Lease Future Minimum Payments (Details) - Gourmet Foods [Member]	Jun. 30, 2019 USD ($)
2020	$ 412,025
2021	384,248
2022	243,412
2023	206,502
2024	109,958
2025	584
Total minimum lease commitment	$ 1,356,729

XML

Note 9 - Accounts Payable and Accrued Expenses - Summary of Accounts Payable and Accrued Expenses (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Accounts payable	$ 1,720,902	$ 1,935,645
Accrued interest	117,555	56,689
Taxes payable	181,563	3,938
Deferred rent	37,076	3,681
Accrued payroll, vacation and bonus payable	345,520	299,630
Accrued expenses	464,465	949,804
Total	$ 2,867,081	$ 3,249,387

XML

Note 7 - Other Assets - Investments (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Investments, cost	$ 3,758,591	$ 3,204,815
Investments, gross unrealized gains		280,480
Investments, gross unrealized losses	(1,995)	(281,290)
Investments	3,756,596	3,204,005
Money Market Funds [Member]
Investments, cost	3,005,182	180,138
Investments, gross unrealized gains
Investments, gross unrealized losses
Investments	3,005,182	180,138
Other Short Term Investments [Member]
Investments, cost	749,988
Investments, gross unrealized gains
Investments, gross unrealized losses	(739)
Investments	749,249
Mutual Fund [Member]
Investments, cost		2,500,000
Investments, gross unrealized gains		280,480
Investments, gross unrealized losses
Investments		2,780,480
Other Equities [Member]
Investments, cost	3,421	1,577
Investments, gross unrealized gains
Investments, gross unrealized losses	(1,256)	(529)
Investments	$ 2,165	1,048
Hedge Asset [Member]
Investments, cost		523,100
Investments, gross unrealized gains
Investments, gross unrealized losses		(280,761)
Investments		$ 242,339

XML

Note 8 - Goodwill (Tables)

12 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Goodwill [Table Text Block]

	As of June 30, 201 9		As of June 30, 201 8
Goodwill – Original Sprout		416,817		416,817
Goodwill – Gourmet Foods		147,628		147,628
Goodwill - Brigadier		351,345		351,345
Total	$	915,790	$	915,790

XML

Note 13 - Stockholders' Equity (Tables)

12 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

Balance as of June 30, 2017	$	119,338
Change in short-term investment valuation before reclassification to earnings		329,629
Foreign currency translation (loss)		(214,284	)
Change in short-term investment valuation due to reclassification to earnings		(85,875	)
Balance as of June 30, 2018	$	148,808
Foreign currency translation (loss)		(44,516	)
Change in short-term investment valuation due to reclassification to earnings		(279,951	)
Balance as of June 30, 2019	$	(175,659	)

XML

Note 8 - Goodwill

12 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Goodwill Disclosure [Text Block]

NOTE

8.

          GOODWILL

Goodwill represents the excess of the aggregate purchase price over the fair value of the net assets acquired in business combinations. The amounts recorded in goodwill for

June 30, 2019

and

2018

were

$915,790

and

$915,790,

respectively.

Goodwill is comprised of the following amounts:

	As of June 30, 201 9		As of June 30, 201 8
Goodwill – Original Sprout		416,817		416,817
Goodwill – Gourmet Foods		147,628		147,628
Goodwill - Brigadier		351,345		351,345
Total	$	915,790	$	915,790

The Company tests for goodwill impairment at each reporting unit. There was

no

goodwill impairment for the year ended

June 30, 2019

or

June 30, 2018.

XML

Note 2 - Summary of Significant Accounting Policies

12 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Significant Accounting Policies [Text Block]

NOTE

2.

     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Accounting Principles

The Company has prepared the accompanying financial statements on a consolidated basis. In the opinion of management, the accompanying consolidated balance sheets and related statements of income and comprehensive income, and cash flows include all adjustments, consisting only of normal recurring items, necessary for their fair presentation, prepared on an accrual basis, in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

Principles of Consolidation

The accompanying condensed consolidated financial statements, which are referred herein as the “Financial Statements” include the accounts of Concierge and its wholly owned subsidiaries, Wainwright, Gourmet Foods, Brigadier and Original Sprout.

All significant inter-company transactions and accounts have been eliminated in consolidation.

Use of Estimates

The preparation of the Financial Statements are in conformity with U.S. GAAP which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Financial Statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents

Cash and cash equivalents include all highly liquid debt instruments with original maturities of

three

months or less. The Company maintains its cash and cash equivalents in financial institutions in the United States, Canada, and New Zealand. Accounts in the United States are insured by the Federal Deposit Insurance Corporation up to

$250,000

per depositor, and accounts in Canada are insured by the Canada Deposit Insurance Corporation up to

CD$100,000

per depositor. Accounts in New Zealand are uninsured. The Company has, at times, held deposits in excess of insured amounts, but the Company does

not

expect any losses in such accounts.

Accounts Receivable, net and Accounts Receivable - Related Parties

Accounts receivable, net, consist of receivables from the Brigadier, Gourmet Foods and Original Sprout businesses. Management regularly reviews the composition of accounts receivable and analyzes customer credit worthiness, customer concentrations, current economic trends and changes in customer payment patterns to determine whether or

not

an account should be deemed uncollectible. Reserves, if any, are recorded on a specific identification basis. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. As of

June 30, 2019

and

June 30, 2018,

the Company had

$2,075

and

$51,747,

respectively, listed as doubtful accounts.

Accounts receivable - related parties, consist of fund asset management fees receivable from the Wainwright business. Management fees receivable generally consist of

one

month of management fees which are collected in the month after they are earned. As of

June 30, 2019,

and

June 30, 2018,

there is

no

allowance for doubtful accounts as all amounts are deemed collectible.

Major Customers and Suppliers – Concentration of Credit Risk

Concierge, through Brigadier, is partially dependent upon its contractual relationship with the alarm monitoring company who provides monitoring services to Brigadier’s customers. In the event this contract is terminated, Brigadier would be compelled to find an alternate source of alarm monitoring, or establish such a facility itself. Management believes that the contractual relationship is sustainable, and has been for many years, with alternate solutions available should the need arise. Sales to the largest customer, which includes contracts and recurring monthly support fees, totaled

46%

and

41%

of the total Brigadier revenues for the years ended

June 30, 2019

and

June 30, 2018,

respectively. The same customer accounted for approximately

37%

of Brigadier's accounts receivable as of the balance sheet date of

June 30, 2019

as compared to

35%

as of

June 30, 2018.

Another large account, which has been a significant customer this fiscal year, contributed

12%

of the total sales revenues for the year ended

June 30, 2019

and

nil

for the year ended

June 30, 2018.

There were

no

accounts receivable from this customer as of

June 30, 2019

or

2018.

Concierge, through Gourmet Foods, has

three

major customer groups comprising the gross revenues to Gourmet Foods;

1

) grocery,

2

) gasoline convenience stores, and

3

) independent retailers. The grocery and food industry is dominated by several large chain operations, which are customers of Gourmet Foods, and there are

no

long term guarantees that these major customers will continue to purchase products from Gourmet Foods, however the relationships have been in place for sufficient time to give management reasonable confidence in their continuing business.

For the year ended and balance sheet date of

June 30, 2019,

Gourmet Foods’ largest customer in the grocery industry, who operates through a number of independently branded stores, accounted for approximately

22%

of Gourmet Foods sales revenues and

28%

of Gourmet Foods accounts receivable as compared to

21%

and

33%

for the prior year ended

June 30, 2018,

respectively. The

second

largest in the grocery industry accounted for approximately

12%

of Gourmet Foods sales revenues for the year ended

June 30, 2019

as compared to

12%

for the year ended

June 30, 2018.

This same group accounted for

19%

of Gourmet Foods accounts receivable as of

June 30, 2019

as compared to

16%

as of

June 30, 2018.

In the gasoline convenience store market Gourmet Foods supplies

two

major channels. The largest is a marketing consortium of gasoline dealers operating under the same brand who, for the year ended and balance sheet date of

June 30, 2019,

accounted for approximately

43%

of Gourmet Foods’ gross sales revenues as compared to

41%

for the year ended

June 30, 2018.

No

single member of the consortium is responsible for a significant portion of Gourmet Foods’ accounts receivable. The

third

category of independent retailers and cafes accounted for the remaining balance of Gourmet Foods’ gross sales revenue, however the group members are independently owned and individually responsible for their financial obligations with

no

one

customer accounting for a significant portion of revenues or accounts receivable.

Concierge, through Original Sprout, is

not

dependent upon any

one

customer or group of customers as

no

single customer or buying group consistently accounts for over

10%

of the gross revenues, though due to timing of deliveries

one

customer accounted for approximately

10%

of our gross revenues for the year ended

June 30, 2019.

There were

3

major distributor accounts, all current, representing

25%,

17%,

and

12%

for a total of

54%

of all accounts receivable as of

June 30, 2019.

Original Sprout is partially dependent upon its relationship with a product packaging company who, at the direction of Original Sprout, manufactures the products, packages them in appropriate containers, and delivers the finished goods to Original Sprout for distribution to its customers. All of Original Sprout’s products are currently produced by this packaging company, although if this relationship were to fail there are other similar packaging companies available to Original Sprout at competitive pricing.

For our subsidiary, Wainwright, the concentration of risk and the relative reliance on major customers are found within the various funds it manages and the associated

12

month revenues and accounts receivable – related parties as of

June 30, 2019

and

June 30, 2018

as depicted below.

	Year ended June 30, 201 9				Year ended June 30, 201 8
	Revenue				Revenue
Fund
USO	$	7,308,354	49	%	$	9,752,223	52	%
USCI		4,051,605	27	%		4,253,921	23	%
UNG		1,922,596	13	%		2,753,723	15	%
All Others		1,738,884	11	%		1,984,446	10	%
Total	$	15,021,439	100	%	$	18,744,313	100	%

	June 30, 2019				June 30, 2018
	Accounts Receivable				Accounts Receivable
Fund
USO	$	526,981	51	%	$	674,535	46	%
USCI		236,251	23	%		431,288	30	%
UNG		141,413	13	%		182,399	12	%
All Others		132,501	13	%		169,937	12	%
Total	$	1,037,146	100	%	$	1,458,159	100	%

Inventories

Inventories, consisting primarily of food products and packaging in New Zealand, hair and skin care finished products and components in the U.S. and security system hardware in Canada, are valued at the lower of cost (determined on a FIFO basis) or net realizable value. Inventories include product cost, inbound freight and warehousing costs where applicable. Management compares the cost of inventories with the net realizable value and an allowance is made for writing down the inventories to their net realizable value, if lower. For the years ended

June 30, 2019

and

2018

impairment to inventory value was recorded as

$0

and

$0,

respectively. An assessment is made at the end of each fiscal year to determine what slow-moving inventory items, if any, should be deemed obsolete and written down to their estimated net realizable value. For the years ended 

June 30, 2019

and

June 30, 2018,

the expense for slow-moving or obsolete inventory was

$10,317

 and

$0,

respectively.

Property and Equipment

Property and equipment are stated at cost. Expenditures for maintenance and repairs are charged to earnings as incurred; additions, renewals and leasehold improvements are capitalized. Office furniture and equipment include office fixtures, computers, printers and other office equipment plus software and applicable packaging designs. Leasehold improvements, which are included in plant and equipment, are depreciated over the shorter of the useful life of the improvement and the length of the lease. When property and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation is computed using the straight line method over the estimated useful life of the asset (see Note

5

to the Consolidated Financial Statements). 

Category	Estimated Useful Life (in years)
Plant and equipment:		5	to	10
Furniture and office equipment:		3	to	5
Vehicles		3	to	5

Intangible Assets

Intangible assets consist of brand names, domain names, recipes, non-compete agreements and customer lists. Intangible assets with finite lives are amortized over the estimated useful life and are evaluated for impairment at least on an annual basis and whenever events or changes in circumstances indicate that the carrying value

may

not

be recoverable. The Company assesses recoverability by determining whether the carrying value of such assets will be recovered through the discounted expected future cash flows. If the future discounted cash flows are less than the carrying amount of these assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. There was

no

impairment recorded for the year ended

June 30, 2019

or for the year ended

June 30, 2018.

Goodwill

Goodwill represents the excess of the aggregate purchase price over the fair value of the net assets acquired in a purchase businesses combination. Goodwill is tested for impairment on an annual basis during the

fourth

quarter of our fiscal year, or more frequently if events or changes in circumstances indicate that the carrying amount of goodwill

may

be impaired. The goodwill impairment test is a

two

-step test. Under the

first

step, the fair value of the reporting unit is compared with its carrying value including goodwill. If the fair value of the reporting unit exceeds its carrying value, step

two

does

not

need to be performed. If the fair value of the reporting unit is less than its carrying value, an indication of goodwill impairment exists for the reporting unit and the enterprise must perform step

two

of the impairment test. Under step two, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit in a manner similar to a purchase price allocation. The residual fair value after this allocation is the implied fair value of the reporting unit goodwill. There was

no

impairment recorded for the years ended

June 30, 2019

and

2018

Impairment of Long-Lived Assets

The Company tests long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset

may

not

be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds the fair value. There was

no

impairment recorded for the years ended

June 30, 2019

or

2018.

Investments and Fair Value of Financial Instruments

Short-term investments are classified as available-for-sale securities. The Company measures the investments at fair value at period end with any changes in fair value reflected as unrealized gains or (losses) which is included as part of other (expense) income. The Company values its investments in accordance with Accounting Standards Codification ("ASC")

820

– Fair Value Measurements and Disclosures (“ASC

820”

). ASC

820

defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurement. The changes to past practice resulting from the application of ASC

820

relate to the definition of fair value, the methods used to measure fair value, and the expanded disclosures about fair value measurement. ASC

820

establishes a fair value hierarchy that distinguishes between: (

1

) market participant assumptions developed based on market data obtained from sources independent of the Company (observable inputs) and (

2

) The Company’s own assumptions about market participant assumptions developed based on the best information available under the circumstances (unobservable inputs). The

three

levels defined by the ASC

820

hierarchy are as follows:

Level

1

– Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level

2

– Inputs other than quoted prices included within Level

1

that are observable for the asset or liability, either directly or indirectly. Level

2

assets include the following: quoted prices for similar assets or 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, and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs).

Level

3

– Unobservable pricing input at the measurement date for the asset or liability. Unobservable inputs shall be used to measure fair value to the extent that observable inputs are

not

available.

In some instances, the inputs used to measure fair value might fall within different levels of the fair value hierarchy. The level in the fair value hierarchy within which the fair value measurement in its entirety falls shall be determined based on the lowest input level that is significant to the fair value measurement in its entirety.

Revenue Recognition

Revenue consists of fees earned through management of investment funds, sale of gourmet meat pies and related bakery confections in New Zealand, security alarm system installation and maintenance services in Canada, and wholesale distribution of hair and skin care products. Revenue is accounted for net of sales taxes, sales returns, trade discounts. The performance obligation is satisfied when the product has been shipped and title, risk of loss and rewards of ownership have been transferred. For most of the Company’s product sales or services, these criteria are met at the time the product is shipped, the subscription period commences, or the management fees are accrued. For our Brigadier subsidiary in Canada, the Company operates under contract with an alarm monitoring company that pays a percentage of their recurring monitoring fee to Brigadier in exchange for continued customer service and support functions with respect to each customer maintained under contract by the monitoring company. 

Recently Adopted Accounting Pronouncements -

In

May 2014,

the Financial Accounting Standards Board (“FASB”) issued authoritative guidance that set forth a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The Company adopted this new standard and its related amendments as of

July 1, 2018

using the modified retrospective transition method, whereby the cumulative effect of initially applying the new standard recognized as an adjustment to the opening balance of stockholders equity. Results for reporting periods commencing on or after

July 1, 2018

are presented under the new standard, while prior period amounts are

not

adjusted and continue to be reported under the accounting standards in effect for that prior period. The impact of adoption did

not

have a material effect on our financial results. The adoption of the new standard impacted the identification of separate obligations for certain sales of security systems and related monitoring sales. The Company generates revenue, in part, through contractual monthly recurring fees received for providing ongoing customer support services to monitoring company clientele. The

five

-step process governing contract revenue reporting includes:

1.

Identifying the contract(s) with customers

2.

Identifying the performance obligations in the contract

3.

Determining the transaction price

4.

Allocate the transaction price to the performance obligations in the contract

5.

Recognize revenue when or as the performance obligation is satisfied

Transactions involve security systems that are sold outright to the customer where the Company's performance obligations include customer support services and the sale and installation of the security systems. For such arrangements, the Company allocates a portion of the transaction price to each performance obligation based on a relative stand-alone selling price. Revenue associated with the sale and installation of security systems is recognized once installation is complete, and is reflected as security system revenue in the Consolidated Statements of Operations. Revenue associated with customer support services is recognized as those services are provided, and is included as a component of security system revenue in the Consolidated Statements of Operations, which for the year ended

June 30, 2019,

were approximately

US$352,249,

or approximately

10%

of the total security system revenues. These revenues for the year ended

June 30, 2019

account for approximately

1%

of total consolidated revenues.

None

of the other subsidiaries of the Company generate revenues from long term contracts.

Because the Company has

no

contract with the end user, and the monthly payments for customer support services are made to the Company by the monitoring company who has a contract with the end user, and end user customers are subject to cancellation through

no

control of the Company; therefore,

no

deferred revenues or contingent liability reserves have been established with respect to these contracts. The services are deemed delivered as the obligation is acknowledged on a monthly basis.

Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. A valuation allowance is provided for deferred tax assets if it is more likely than

not

that these items will either expire before the Company is able to realize their benefits or if future deductibility is uncertain.

When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than

not

that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are

not

offset or aggregated with other positions. Tax positions that meet the more-likely-than-

not

recognition threshold are measured as the largest amount of tax benefit that is more than

50

percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Applicable interest and penalties associated with unrecognized tax benefits are classified as additional income taxes in the statements of operations.

Advertising Costs

The Company expenses the cost of advertising as incurred. Marketing and advertising costs for the years ended

June 30, 2019

and

2018

were

$2.9

million and

$3.6

million, respectively.

Other Comprehensive Income (Loss)

Foreign Currency Translation

We record foreign currency translation adjustments and transaction gains and losses in accordance with ASC

830

-

30,

Foreign Currency Translation

. The accounts of Gourmet Foods use the New Zealand dollar as the functional currency. The accounts of Brigadier Security System use the Canadian dollar as the functional currency. Assets and liabilities are translated at the exchange rate on the balance sheet date, and operating results are translated at the weighted average exchange rate throughout the period. Foreign currency transaction gains and (losses) can also occur if a transaction is settled in a currency other than the entity's functional currency. Accumulated currency translation gains and (losses) are classified as an item of accumulated other comprehensive income (loss) in the stockholders’ equity section of the consolidated balance sheet.

Short-Term Investment Valuation

In

January 2016,

the FASB issued authoritative guidance related to the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. Under the new guidance, equity investments with readily determinable fair values, except those accounted for under the equity method, will be measured at fair value with changes in fair value recognized in earnings rather than other comprehensive income (loss). In addition, this update clarifies the guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from the unrealized losses on certain debt securities. The Company adopted this guidance effective on

July 1, 2018.

See Recent Accounting Pronouncements below related to

July 1, 2018

reclassification of accumulated other comprehensive income to retained earnings. Besides this reclassification there was

no

material impact to Consolidated Financial Statements as a result of the adoption.

Segment Reporting

The Company defines operating segments as components about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performances. The Company allocates its resources and assesses the performance of its sales activities based on the geographic locations of its subsidiaries (Refer to Note

16

of the Consolidated Financial Statements).

Business Combinations

We allocate the fair value of purchase consideration to the tangible assets acquired, liabilities assumed and intangible assets acquired based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are

not

limited to, future expected cash flows from acquired users, acquired trade names from a market participant perspective, useful lives and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results

may

differ from estimates. During the measurement period, which is

one

year from the acquisition date, we

may

record adjustments to the assets acquired and liabilities assumed. For the years ended

June 30, 2019 

and

2018

a determination was made that

no

adjustments were necessary.

Recent Accounting Pronouncements adopted during the year ended

June 30, 2019

On

July 1, 2018

the Company adopted ASU

2016

-

01

Financial Instruments - Recognition and Measurement of Financial Assets and Financial Liabilities

and Accounting Standards Codification ("ASC")

606

 -

Revenue from Contracts with Customers

("ASC

606"

). A summary of the effects of the initial adoption of ASU

2016

-

01

and ASC

606

follows:

	ASU 2016-01			ASC 606		Total
Increase (decrease):
Assets	$	-		$	-	$	-
Liabilities	$	-		$	-	$	-
Accumulated other comprehensive income	$	(279,951	)	$	-	$	(279,951	)
Retained earnings	$	279,951		$	-	$	279,951

The above (“ASU

2016

-

01”

) entry reclasses accumulated gains from changes in short-term investment valuations previously recorded in comprehensive income to retained earnings. ASU

2016

-

01

requires that unrealized gains and losses arising from changes in market values of our investments in equity securities be recorded in the condensed consolidated statements of operations rather than in accumulated other comprehensive income (loss) on the balance sheet. Prior to

July 1, 2018 

investment gains and losses related to equity securities were reflected on the condensed consolidated statements of comprehensive income.

The Company has reviewed new accounting pronouncements issued between

September 28, 2018,

the filing date of our most recent prior Annual Report on Form

10

-K, and the filing date of this Annual Report on Form

10

-K, and has determined that

no

new pronouncements, apart from Topic

842

described below, issued are relevant to the Company, and/or have, or will have, a material impact on the Company’s consolidated financial position, results of operations or disclosure requirements.

On

July 1, 2019,

the Company adopted FASB ASU

2016

-

02,

Leases (Topic

842

), which supersedes the requirements in Topic

840,

Leases. The objective of Topic

842

is to establish the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. The core principle of Topic

842

is that a lessee should recognize the assets and liabilities that arise from leases. It is expected that assets and liabilities will increase based on the present value of remaining lease payments for leases in place at the adoption date; however, based on the current level of long term leases in place, this is

not

material to the Company’s results of operations or financial position. See Note

15

for information on existing leases.

XML

Note 4 - Inventories

12 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Inventory Disclosure [Text Block]

NOTE 

4.

          INVENTORIES

Inventories for Gourmet Foods, Brigadier and Original Sprout consisted of the following totals:

	June 30,		June 30,
	201 9		201 8
Raw materials	$	208,284	$	195,674
Supplies and packing materials		188,035		142,257
Finished goods		612,343		593,134
Total inventories	$	1,008,662	$	931,065

XML

Document And Entity Information - USD ($)	12 Months Ended
	Jun. 30, 2019	Sep. 27, 2019	Dec. 31, 2018
Document Information [Line Items]
Entity Registrant Name	CONCIERGE TECHNOLOGIES INC
Entity Central Index Key	0001005101
Current Fiscal Year End Date	--06-30
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Public Float			$ 8,386,366
Entity Shell Company	false
Document Type	10-K
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Amendment Flag	false
Common Stock [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		37,412,519
Series B Convertible Preferred Stock [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		53,032

XML

Note 12 - Business Combination

12 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Business Combination Disclosure [Text Block]

NOTE

12.

         BUSINESS COMBINATION

Acquisition of the assets of The Original Sprout, LLC

Kahnalytics, Inc., a wholly owned subsidiary of Concierge Technologies domiciled in California, was founded during

May 2015

for the purpose of carrying on the residual business from the disposal of Concierge Technologies' former subsidiary, Wireless Village dba/Janus Cam. As that business segment slowly wound down over the ensuing

two

years, management began a search for another business opportunity for Kahnalytics. Accordingly, on

December 18, 2017,

Kahnalytics acquired all of the assets of The Original Sprout, LLC, a California limited liability company. Simultaneous with the acquisition, Kahnalytics registered a "doing business as" (or "dba") name of “Original Sprout” and transitioned its business to the manufacture, warehousing and wholesale distribution of non-toxic, all-natural, hair and skin care products under the brand name Original Sprout. The acquisition by Kahnalytics was financed through a non-interest bearing note from Concierge Technologies. The purchase price was approximately

$3.5

million with payments to be made over the course of a

twelve

-month period and per the estimated allocation as depicted in the following table.

Item	Amount
Inventory	$	371,866
Accounts receivable		288,804
Furniture, fixtures and equipment		1,734
Pre-payments of inventory		8,775
Discount on installment payments**		64,176
Intangible assets*		2,330,000
Goodwill		416,817
Total Purchase Price	$	3,482,172

*See Note

6

for further detail of intangible assets acquired.

**This amount represents a discount on installment payments and was charged to interest expense.

On the closing date of the transaction,

December 18, 2017,

Kahnalytics paid

$982,172

in cash towards the purchase price and deposited an additional

$1,250,000

in an attorney-held client trust account which was released to the sellers, after downward adjustments due to changes in acquired accounts receivable, on

May 18, 2018.

The balance of the purchase price, after consideration for monthly installment payments, was paid in full on

January 5, 2019. 

Supplemental Pro Forma Information (Unaudited)

The following unaudited supplemental pro forma information for the year ended

June 30, 

2018

assumes the acquisition of the Original Sprout LLC assets had occurred as of

July 1, 2017,

giving effect on a pro forma basis to purchase accounting adjustments such as depreciation of property and equipment, amortization of intangible assets, and acquisition related costs. The pro forma data is for information purposes only and

may

not

necessarily reflect the actual results of operations had the assets of Original Sprout LLC been operated as part of the Company since

July 1, 2017.

Furthermore, the pro forma results do

not

intend to predict the future results of operations of the Company.

	Year Ended
	June 30, 2018
	Pro Forma (1)
Net Revenues	$	30,782,940
Net Income	$	2,044,203
Basic Earnings per Share	$	0.07
Diluted Earnings per Share	$	0.05

( 1 ) Includes the operation of the assets acquired from Original Sprout LLC on a consolidated basis and the estimated transaction costs, amortization of intangible assets, and estimated income tax.

XML

Condensed Consolidated Statements of Comprehensive Income - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Net income	$ 261,849	$ 1,734,686
Other comprehensive income (loss):
Foreign currency translation (loss)	(44,516)	(214,284)
Changes in short-term investment valuation		243,754
Comprehensive income	$ 217,333	$ 1,764,156

XML

Note 14 - Income Taxes - Income Tax Reconciliation (Details) - USD ($)	6 Months Ended	12 Months Ended
	Dec. 31, 2017	Jun. 30, 2019	Jun. 30, 2018
Federal tax expense (benefit) at statutory rate, amount		$ 127,861	$ 687,853
State Income Taxes, amount		36,760	(437,242)
Permanent Differences, amount		112,814	(46,251)
Deferred tax impact of the Tax Act, amount			504,905
U.S. toll charge (net of FTC)			1,112
Foreign tax credit		(43,930)
Change in Valuation Allowance, amount		(9,761)	9,761
Foreign Rate Differential, amount		123,270	46,458
Total		$ 347,014	$ 766,596
Federal tax expense (benefit) at statutory rate, percent	35.00%	21.00%	27.50%
State Income Taxes, percent		6.04%	(17.48%)
Permanent Differences, percent		18.52%	(1.85%)
Deferred tax impact of the Tax Act, percent			20.19%
Foreign Rate Differential, percent		20.25%	1.86%
U.S. toll charge (net of FTC)			0.04%
Foreign tax credit		(7.22%)
Change in Valuation Allowance, percent		(1.60%)	0.39%
Total tax expense		56.99%	30.65%

XML

Note 16 - Segment Reporting (Details Textual)	12 Months Ended
	Jun. 30, 2019
Number of Reportable Segments	4

XML

Note 8 - Goodwill - Summary of Goodwill (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Goodwill	$ 915,790	$ 915,790
The Original Sprout LLC [Member]
Goodwill, gross	416,817	416,817
Gourmet Foods [Member]
Goodwill, gross	147,628	147,628
Brigadier [Member]
Goodwill, gross	$ 351,345	$ 351,345

XML

Note 7 - Other Assets - Components of Other Current Assets (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Prepaid expenses	$ 462,215	$ 358,869
Other current assets	83,890	15,748
Total	$ 546,105	$ 374,617

XML

Note 9 - Accounts Payable and Accrued Expenses (Tables)

12 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]

	June 30, 201 9		June 30, 201 8
Accounts payable	$	1,720,902	$	1,935,645
Accrued interest		117,555		56,689
Taxes payable		181,563		3,938
Deferred rent		37,076		3,681
Accrued payroll, vacation and bonus payable		345,520		299,630
Accrued expenses		464,465		949,804
Total	$	2,867,081	$	3,249,387

XML

Note 14 - Income Taxes (Tables)

12 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

	Years Ended June 30,
	2019		2018
U.S.	$	414,961	$	2,276,390
Foreign		193,902		224,892
Income before income taxes	$	608,863	$	2,501,282

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	Years Ended June 30,
	201 9		201 8
U.S. operations	$	183,025	$	658,293
Foreign operations		163,989		108,303
Total	$	347,014	$	766,596

For the year ended:	June 30, 201 9			June 30, 201 8
Current:
Federal	$	149,239		$	572,227
States		36,183			(510,765	)
Foreign		188,009			140,142
Total current		373,431			201,604
Deferred:
Federal		(10,572	)		502,364
States		8,175			94,467
Foreign		(24,020	)		(31,839	)
Total deferred		(26,417	)		564,992
Total	$	347,014		$	766,596

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

For the year ended:	June 30, 201 9			June 30, 201 8
Deferred tax assets:
Property and equipment and intangible assets - U.S.	$	619,483		$	745,420
Net operating loss		3,299			3,646
Capital loss carryover		167			10,337
Accruals, reserves and other - foreign		5,674			13,494
Accruals, reserves and other - U.S.		233,646			104,607
Gross deferred tax assets		862,269			877,504
Less valuation allowance		(2,573	)		(12,384	)
Total deferred tax assets	$	859,696		$	865,120
Deferred tax liabilities:
Intangible assets - foreign	$	(176,578	)	$	(208,419	)
Total deferred tax liabilities	$	(176,578	)	$	(208,419	)

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

For the year ended:	June 30, 2019			June 30, 2018
Federal tax expense (benefit) at statutory rate	$	127,861		$	687,853
State income taxes		36,760			(437,242	)
Permanent differences		112,814			(46,251	)
Deferred tax impact of the Tax Act		-			504,905
U.S. toll charge (net of FTC)		-			1,112
Foreign tax credit		(43,930	)
Change in valuation allowance		(9,761	)		9,761
Foreign rate differential		123,270			46,458
Total tax expense	$	347,014		$	766,596

For the year ended:	June 30, 2019			June 30, 2018
	%			%
Federal tax expense (benefit) at statutory rate		21.00	%		27.50	%
State income taxes		6.04	%		(17.48	%)
Permanent differences		18.52	%		(1.85	%)
Deferred tax impact of the Tax Act		-			20.19	%
Foreign rate differential		20.25	%		1.86	%
U.S. toll charge (net of FTC)		-			0.04	%
Foreign tax credit		(7.22	%)		-
Change in valuation allowance		(1.60	%)		0.39	%
Total tax expense		56.99	%		30.65	%

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

Balance at June 30, 201 8	$	264,543
Additions based on tax positions taken during a prior period		12,597
Reductions based on tax positions taken during a prior period		-
Additions based on tax positions taken during the current period		-
Reductions based on tax positions taken during the current period		-
Reductions related to settlement of tax matters		-
Reductions related to a lapse of applicable statute of limitations		-
Balance at June 30, 201 9	$	277,140

XML

Note 11 - Equipment Loans

12 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Loan Commitments [Text Block]

NOTE

11.

         EQUIPMENT LOANS

As of

June 30, 2019,

Brigadier had, in the aggregate, an outstanding principal balance of

CD$114,292

(approx.

US$87,297

) related to new vehicle purchases. For each vehicle purchased, the loan principal together with interest is amortized over

60

equal monthly installments. The Consolidated Balance Sheets as of

June 30, 2019

and

June 30, 2018

reflect the amount of the principal balance which is due within

twelve

months as a current liability of

US$26,241

 and

$46,705,

respectively. Principal amounts under the loans which is due after

twelve

months are recorded in long term liabilities as

US$61,057

and

$149,491

for the years ended

June 30, 2019

and

2018

respectively. Interest on the loans is expensed or accrued as it becomes due. Total interest on all vehicle loans for the year ended

June 30, 2019

was

US$5,197

and

$12,662

for the year ended

June 30, 2018.

XML

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Net revenue
Fund management - related party	$ 15,021,439	$ 18,744,313
Net revenue	26,948,623	28,710,589
Cost of revenue	6,936,421	5,914,719
Gross profit	20,012,202	22,795,870
Operating expense
General and administrative expense	4,205,389	4,828,241
Fund operations	4,494,001	4,933,437
Marketing and advertising	2,910,447	3,554,507
Depreciation and amortization	702,320	576,674
Salaries and compensation	6,944,457	6,096,232
Total operating expenses	19,256,614	19,989,091
Income from operations	755,588	2,806,779
Other (expense) income:
Other (expense) income	(484,028)	(316,337)
Interest and dividend income	366,796	111,929
Interest expense	(29,493)	(101,089)
Total other (expense) income, net	(146,725)	(305,497)
Income before income taxes	608,863	2,501,282
Provision of income taxes	347,014	766,596
Net income	$ 261,849	$ 1,734,686
Weighted average shares of common stock
Basic (in shares)	32,588,418	29,559,139
Diluted (in shares)	38,298,159	38,298,159
Net income per common share
Basic income per share (in dollars per share)	$ 0.01	$ 0.06
Diluted income (loss) per share (in dollars per share)	$ 0.01	$ 0.05
Food and Beverage [Member]
Net revenue
Revenue	$ 4,747,358	$ 4,968,158
Security Alarm Monitoring [Member]
Net revenue
Revenue	3,558,580	3,303,584
Beauty Products and Other [Member]
Net revenue
Revenue	$ 3,621,246	$ 1,694,534

XML

Note 7 - Other Assets

12 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Other Assets Disclosure [Text Block]

NOTE

7.

          OTHER ASSETS

Other Current Assets

Other current assets totaling

$546,105

as of

June 30, 2019

and

$374,617

as of

June 30, 2018

are comprised of various components as listed below.

	As of June 30, 201 9		As of June 30, 201 8
Prepaid expenses	$	462,215	$	358,869
Other current assets		83,890		15,748
Total	$	546,105	$	374,617

Investments

Wainwright, from time to time, provides initial investments in the creation of ETP funds that Wainwright manages. Wainwright classifies these investments as current assets as these investments are generally sold within

one

year from the balance sheet date. Investments in which

no

controlling financial interest or significant influence exists are recorded at fair value included in comprehensive income (loss) through

June 30, 2018

and subsequently through earnings in accordance with ASU

2016

-

01.

As of

June 30, 2019

and

June 30, 2018,

investments were approximately

$3.8

million and

$3.2

million, respectively. Investments in which

no

controlling financial interest exists, but significant influence exists are recorded as per the equity method of investment accounting. As of

June 30, 2019 

and

June 30, 2018,

there were

no

investments requiring the equity method investment accounting.

Investments measured at estimated fair value consist of the following as of

June 30, 2019

and

June 30, 2018:

	As of June 30, 201 9
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Money market funds	$	3,005,182	$	-	$	-		$	3,005,182
Other short term investments		749,988		-		(739	)		749,249
Other equities		3,421		-		(1,256	)		2,165
Total short-term investments	$	3,758,591	$	-	$	(1,995	)	$	3,756,596

	As of June 30, 201 8
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Money market funds	$	180,138	$	-	$	-		$	180,138
USCI mutual fund investment		2,500,000		280,480		-			2,780,480
Hedged asset		523,100		-		(280,761	)		242,339
Other equities		1,577		-		(529	)		1,048
Total short-term investments	$	3,204,815	$	280,480	$	(281,290	)	$	3,204,005

The following tables summarize the valuation of the Company’s securities at

June 30, 2019

and

June 30, 2018

using the fair value hierarchy:

	As of June 30, 201 9
	Total		Level 1		Level 2		Level 3
Money market funds	$	3,005,182	$	3,005,182	$	-	$	-
Other short term investments		749,249		749,249		-		-
Other equities		2,165		2,165		-		-
Total	$	3,756,596	$	3,756,596	$	-	$	-

	As of June 30, 201 8
	Total		Level 1		Level 2		Level 3
Money market funds	$	180,138	$	180,138	$	-	$	-
Mutual fund investment		2,780,480		2,780,480		-		-
Hedge asset		242,339		-		242,339		-
Other equities		1,048		1,048		-		-
Total	$	3,204,005	$	2,961,666	$	242,339	$	-

During the years ended

June 30, 2019

and

2018,

there were

no

transfers between Level

1

and Level

2.

Restricted Cash

At

June 30, 2019

and

2018,

Gourmet Foods had on deposit approximately

NZ$20,000

(approximately

US$13,437

and

US$13,536,

respectively after currency translation) securing a lease bond for

one

of its properties. The cash securing the bond is restricted from access or withdrawal so long as the bond remains in place.

Long - Term Assets

Other long term assets totaling

$523,607

and

$532,165

at

June 30, 2019

and

June 30, 2018,

respectively, were attributed to Wainwright and Original Sprout and consisted of

(i)	$500,000 as of June 30, 2019 and June 30, 2018 representing 10% equity investment in a registered investment adviser accounted for on a cost basis,
(ii)	and $23,607 as of June 30, 2019 and $32,165 at June 30, 2018 representing deposits and prepayments of rent.

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Note 1 - Organization and Description of Business

12 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Business Description and Basis of Presentation [Text Block]

NOTE

1.

     ORGANIZATION AND DESCRIPTION OF BUSINESS

Concierge Technologies, Inc., (the “Company” or “Concierge”), a Nevada corporation, operates through its wholly owned subsidiaries who are engaged in varied business activities. The operations of the Company’s wholly-owned subsidiaries are more particularly described herein but are summarized as follows:

● Wainwright Holdings, Inc. (“Wainwright”), a U.S. based company, is the sole member of two investment services limited liability company subsidiaries, United States Commodity Funds LLC (“USCF”), and USCF Advisers LLC (“USCF Advisers”), each of which manages, operates or is an investment advisor to exchange traded funds organized as limited partnerships or investment trusts that issue shares which trade on the NYSE Arca stock exchange.

● Gourmet Foods, Ltd. (“Gourmet Foods”), a New Zealand based company, manufactures and distributes New Zealand meat pies on a commercial scale.

● Brigadier Security Systems ( 2000 ) Ltd. (“Brigadier”), a Canadian based company, sells and installs commercial and residential alarm monitoring systems.

● Kahnalytics, Inc. dba/Original Sprout (“Original Sprout”), a U.S. based company, is engaged in the wholesale distribution of hair and skin care products under the brand name Original Sprout on a global scale. The former business of Kahnalytics, providing live-streaming mobile video on a subscription basis, was insignificant and was terminated after transitioning to the current business of distributing hair and skin care products.

See “Note

12.

Business Combinations” for a description of the terms of our acquisitions for our operating businesses.

Concierge manages its operating businesses on a decentralized basis. There are

no

centralized or integrated operational functions such as marketing, sales, legal or other professional services and there is little involvement by Concierge’s management in the day-to-day business affairs of its operating subsidiary businesses. Concierge’s corporate management is responsible for capital allocation decisions, investment activities and selection and retention of the Chief Executive to head each of the operating subsidiaries. Concierge's corporate management is also responsible for corporate governance practices, monitoring regulatory affairs, including those of its operating businesses and involvement in governance-related issues of its subsidiaries as needed.

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Note 3 - Basic and Diluted Net Loss Per Share

12 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE

3.

          BASIC AND DILUTED NET LOSS PER SHARE

Basic net loss per share is based upon the weighted average number of common shares outstanding. Diluted net loss per share is based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. The Company does

not

have any options or warrants.

Diluted net income per share reflects the effects of shares actually potentially issuable upon conversion of convertible preferred stock.

The components of basic and diluted earnings per share were as follows:

	For the year ended June 30, 201 9
	Net Income		Shares		Per Share
Basic income per share:
Net income available to common shareholders	$	261,849		32,588,418	$	0.01
Effect of dilutive securities		-		-		-
Preferred stock Series B		-		5,709,741		-
Diluted income per share	$	261,849		38,298,159	$	0.01

	For the year ended June 30, 201 8
	Net Income		Shares		Per Share
Basic income per share:
Net income available to common shareholders	$	1,734,686		29,559,139	$	0.06
Effect of dilutive securities		-		-		-
Preferred stock Series B		-		8,739,020		-
Diluted income per share	$	1,734,686		38,298,159	$	0.05

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Note 2 - Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jun. 30, 2019

Notes Tables

Schedules of Concentration of Risk, by Risk Factor [Table Text Block]

	Year ended June 30, 201 9				Year ended June 30, 201 8
	Revenue				Revenue
Fund
USO	$	7,308,354	49	%	$	9,752,223	52	%
USCI		4,051,605	27	%		4,253,921	23	%
UNG		1,922,596	13	%		2,753,723	15	%
All Others		1,738,884	11	%		1,984,446	10	%
Total	$	15,021,439	100	%	$	18,744,313	100	%

	June 30, 2019				June 30, 2018
	Accounts Receivable				Accounts Receivable
Fund
USO	$	526,981	51	%	$	674,535	46	%
USCI		236,251	23	%		431,288	30	%
UNG		141,413	13	%		182,399	12	%
All Others		132,501	13	%		169,937	12	%
Total	$	1,037,146	100	%	$	1,458,159	100	%

Property, Plant and Equipment, Estimated Useful Life [Table Text Block]

Category	Estimated Useful Life (in years)
Plant and equipment:		5	to	10
Furniture and office equipment:		3	to	5
Vehicles		3	to	5

Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]

	ASU 2016-01			ASC 606		Total
Increase (decrease):
Assets	$	-		$	-	$	-
Liabilities	$	-		$	-	$	-
Accumulated other comprehensive income	$	(279,951	)	$	-	$	(279,951	)
Retained earnings	$	279,951		$	-	$	279,951

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Note 15 - Commitments and Contingencies

12 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

NOTE

15.

         COMMITMENTS AND CONTINGENCIES

Lease Commitments

The Company leases various facilities and offices throughout the world including the following subsidiary locations:

Gourmet Foods has operating leases for its office, factory and warehouse facilities located in Tauranga, New Zealand, as well as for certain equipment including vehicles. These leases are generally for

three

-year terms, with options to renew for additional

three

-year periods. The leases mature between

September 2019

and

September 2022,

and require monthly rental payments of approximately

US$11,561

translated to U.S. currency as of

June 30, 2019.

Brigadier leases office and storage facilities as well as certain office equipment in Saskatoon and Regina, Saskatchewan. As of

June 30, 2019,

the Company had entered into an agreement to purchase its leased facility in Saskatoon effective

July 1, 2019 (

see Note

17

-Subsequent Events). The minimum lease obligations for the Regina facility and office equipment require monthly payments of approximately

US$2,755

translated to U.S. currency as of

June 30, 2019.

Original Sprout currently leases office and warehouse space in San Clemente, CA under a

three

-year lease agreement expiring or renewing at

March 1, 2021.

Minimum monthly lease payments are approximately

$7,837

with increases annually.

Wainwright leases office space in Walnut Creek, California under an operating lease which expires in

December 2024.

Minimum monthly lease payments are approximately

$12,000

with increases annually.

For the years ended

June 30, 2019

and

2018,

the combined lease payments of the Company and its subsidiaries totaled

$413,429

and

$254,150,

respectively.

Future minimum consolidated lease payments for Concierge and its subsidiaries are as follows:

Year Ended June 30,	Lease Amount
2020	$	412,025
2021		384,248
2022		243,412
2023		206,502
2024		109,958
2025		584
Total minimum lease commitment	$	1,356,729

Additionally, Gourmet Foods entered into a General Security Agreement in favor of the Gerald O’Leary Family Trust and registered on the Personal Property Securities Register for a priority sum of

NZ$110,000

(approximately

US$73,901

) to secure the lease of its primary facility. In addition, a

NZ$20,000

(approximately

US$13,437

) bond has been posted through ANZ Bank and secured with a cash deposit of equal amount to secure a separate facilities lease. The General Security Agreement and the cash deposit will remain until such time as the respective leases are satisfactorily terminated in accordance with their terms. Interest from the cash deposit securing the lease accumulates to the benefit of Gourmet Foods and is listed as a component of interest income/expense on the accompanying Consolidated Statements of Operations.

Other Agreements and Commitments 

USCF manages

four

funds (BNO, CPER, UGA, UNL) which have expense waivers provisions, whereby USCF will reimburse funds when fund expenditure levels exceed certain threshold amounts.As of

June 30, 2019

and

June 30, 2018

the expense waiver payable was

$0.3

million and

$0.7

million, respectively. USCF has

no

obligation to continue such payments for these

four

funds into subsequent periods.

USCF Advisers previously managed

one

mutual fund, the USCF Commodity Strategy Fund ("USCFX" and USCIX") until it was liquidated on

March 21, 2019.

Prior to liquidation, USCF Advisers had an expense waiver provision for the USCF Commodity Strategy Fund, whereby, USCF Advisers reimbursed the USCF Commodity Strategy Fund when fund expenditure levels exceeded a certain threshold amount.  The expense fee waiver terminated upon the liquidation of the fund on

March 21, 2019. 

Litigation

From time to time, the Company is involved in legal proceedings arising mainly from the ordinary course of its business. Currently, there are

no

legal proceedings pending.

Retirement Plan

Wainwright's wholly owned subsidiary USCF, has a

401

(k) Profit Sharing Plan covering its employees who are over

21

years of age and who have completed a minimum of

1,000

hours of service and have worked for USCF for

one

or more years. Participants

may

make contributions pursuant to a salary reduction agreement. In addition, USCF makes an safe harbor matching contribution. Quarterly profit sharing contributions paid totaled approximately

$158

thousand and

$95

thousand for each of the years ended

June 30, 2019

and

2018,

respectively.

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Note 14 - Income Taxes - Income Before Taxes (Details) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
U.S.	$ 414,961	$ 2,276,390
Foreign	193,902	224,892
Income before income taxes	$ 608,863	$ 2,501,282

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Note 12 - Business Combinations - Pro Forma Results (Details) - Kahnalytics [Member] - The Original Sprout LLC [Member]	12 Months Ended
	Jun. 30, 2019 USD ($) $ / shares	[1]
Net Revenues | $	$ 30,782,940
Net Income | $	$ 2,044,203
Basic Earnings per Share (in dollars per share) | $ / shares	$ 0.07
Diluted Earnings per Share (in dollars per share) | $ / shares	$ 0.05

[1] Includes the operation of the assets acquired from Original Sprout LLC on a consolidated basis and the estimated transaction costs, amortization of intangible assets, and estimated income tax.

XML

Note 10 - Related Party Transactions - Notes Payable (Details) (Parentheticals)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Notes Payable Due on December 31, 2012 [Member]
Notes payable, interest rate	8.00%	8.00%
Notes payable, maturity date	Dec. 31, 2012	Dec. 31, 2012
Notes Payable Due on May 25, 2022 [Member]
Notes payable, interest rate	4.00%	4.00%
Notes payable, maturity date	May 25, 2022	May 25, 2022
Notes Payable Due on April 8, 2022 [Member]
Notes payable, interest rate	4.00%	4.00%
Notes payable, maturity date	Apr. 08, 2022	Apr. 08, 2022

XML

Note 2 - Summary of Significant Accounting Policies - Effects of Initial Adoption (Details) - USD ($)	Jun. 30, 2019	Jul. 01, 2018	Jun. 30, 2018
Assets	$ 21,253,608		$ 23,101,149
Liabilities	4,060,278		6,125,152
Accumulated other comprehensive income	(175,659)		148,808
Retained earnings	$ 8,152,861		$ 7,611,061
Accounting Standards Update 2016-01 [Member]
Assets
Liabilities
Accumulated other comprehensive income		(279,951)
Retained earnings		279,951
Accounting Standards Update 2014-09 [Member]
Assets
Liabilities
Accumulated other comprehensive income
Retained earnings
Accounting Standards Update 2016-01 and 2014-09 [Member]
Assets
Liabilities
Accumulated other comprehensive income		(279,951)
Retained earnings		$ 279,951

XML

Note 5 - Property and Equipment, Net - Property and Equipment Summary (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Plant and equipment, gross	$ 2,032,671	$ 2,010,927
Accumulated depreciation	(1,275,657)	(930,456)
Total property and equipment, net	757,014	1,080,471
Plant and Equipment [Member]
Plant and equipment, gross	1,511,629	1,487,568
Furniture and Fixtures [Member]
Plant and equipment, gross	188,370	171,978
Vehicles [Member]
Plant and equipment, gross	$ 332,672	$ 351,381