10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended December 31, 2015

¨ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission File Number 001-35392

RADIANT LOGISTICS, INC.

(Exact name of Registrant as Specified in Its Charter)

Delaware	04-3625550
(State or Other Jurisdiction of Incorporation or Organization)	(IRS Employer Identification No.)

	405 114th Ave S.E., Bellevue, WA 98004
	(Address of principal executive offices)
	(425) 943-4599
	(Registrant’s telephone number, including area code)
	N/A
(Former name, former address, and former fiscal year, if changed since last report)

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 past 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 and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files).    Yes  x    No  ¨

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

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	x

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

There were 48,745,540 shares issued and outstanding of the registrant’s common stock, par value $.001 per share, as of February 11, 2016.

RADIANT LOGISTICS, INC.

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements - Unaudited
	Condensed Consolidated Balance Sheets as of December 31, 2015 and June 30, 2015	3
	Condensed Consolidated Statements of Operations and Other Comprehensive Income for the three and six months ended December 31, 2015 and 2014	4
	Condensed Consolidated Statement of Stockholders’ Equity for the six months ended December 31, 2015	5
	Condensed Consolidated Statements of Cash Flows for the six months ended December 31, 2015 and 2014	6
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Conditions and Results of Operations	25
Item 4.	Controls and Procedures	38
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	39
Item 1A.	Risk Factors	39
Item 6.	Exhibits	40

2

RADIANT LOGISTICS, INC.

Condensed Consolidated Balance Sheets

(unaudited)

	December 31,			June 30,
	2015			2015
ASSETS
Current assets:
Cash and cash equivalents	$	20,126,312		$	7,268,144
Accounts receivable, net of allowance of $1,819,512 and $1,551,202, respectively		107,977,722			127,348,546
Employee and other receivables		120,378			110,728
Income tax deposit		4,954,723			4,102,191
Prepaid expenses and other current assets		5,199,816			5,671,872
Deferred tax asset		1,977,433			1,977,433
Total current assets		140,356,384			146,478,914
Furniture and equipment, net		13,312,694			13,175,890
Acquired intangibles, net		76,088,477			82,954,682
Goodwill		63,119,472			63,089,222
Deposits and other assets		2,223,373			3,007,492
Total long-term assets		141,431,322			149,051,396
Total assets	$	295,100,400		$	308,706,200
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued transportation costs	$	79,819,306		$	92,025,407
Commissions payable		11,504,009			9,449,047
Other accrued costs		5,384,248			7,732,101
Due to former shareholders of acquired operations		—			683,593
Current portion of notes payable		1,537,628			543,086
Current portion of contingent consideration		3,029,000			1,872,000
Current portion of transition and lease termination liability		1,509,761			282,849
Other current liabilities		292,226			297,727
Total current liabilities		103,076,178			112,885,810
Notes payable, net of current portion		47,851,343			85,892,515
Contingent consideration, net of current portion		3,726,000			5,741,000
Transition and lease termination liability, net of current portion		857,112			923
Deferred rent liability		931,840			1,143,749
Deferred tax liability		15,502,503			17,544,417
Other long-term liabilities		778,938			1,004,812
Total long-term liabilities		69,647,736			111,327,416
Total liabilities		172,723,914			224,213,226
Stockholders' equity:
Preferred stock, $0.001 par value, 5,000,000 shares authorized; 839,200 shares issued and    outstanding, liquidation preference of $20,980,000		839			839
Common stock, $0.001 par value, 100,000,000 shares authorized; 48,743,581 and 42,563,224    shares issued and outstanding, respectively		30,198			24,018
Additional paid-in capital		113,826,750			74,658,960
Deferred compensation		(1,976	)		(4,166	)
Retained earnings		7,446,336			10,146,282
Accumulated other comprehensive income (loss)		1,026,938			(394,547	)
Total Radiant Logistics, Inc. stockholders’ equity		122,329,085			84,431,386
Non-controlling interest		47,401			61,588
Total stockholders’ equity		122,376,486			84,492,974
Total liabilities and stockholders’ equity	$	295,100,400		$	308,706,200

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

3

RADIANT LOGISTICS, INC.

Condensed Consolidated Statements of Operations and Comprehensive Income

(unaudited)

	Three Months Ended December 31,						Six Months Ended December 31,
		2015			2014			2015			2014
Revenues	$	206,951,043		$	105,948,104		$	425,603,615		$	204,179,492
Cost of transportation		159,354,826			78,355,731			327,294,293			150,262,336
Net revenues		47,596,217			27,592,373			98,309,322			53,917,156
Operating partner commissions		21,691,079			14,897,910			43,988,958			28,877,261
Personnel costs		13,279,317			6,976,480			27,722,412			13,536,426
Selling, general and administrative expenses		6,628,468			2,882,218			13,091,902			5,530,284
Depreciation and amortization		3,118,854			1,099,713			6,223,853			2,378,794
Transition and lease termination costs		1,157,420			395,086			4,319,648			395,086
Impairment of acquired intangible assets		3,679,825			—			3,679,825			—
Change in contingent consideration		598,233			(170,796	)		186,233			(720,796	)
Total operating expenses		50,153,196			26,080,611			99,212,831			49,997,055
Income (loss) from operations		(2,556,979	)		1,511,762			(903,509	)		3,920,101
Other income (expense):
Interest income		7,696			732			14,477			1,657
Interest expense		(1,317,546	)		(96,442	)		(2,735,475	)		(187,901	)
Foreign exchange gain		218,246			37,584			468,752			112,082
Other		23,982			23,149			118,502			75,473
Total other income (expense):		(1,067,622	)		(34,977	)		(2,133,744	)		1,311
Income (loss) before income tax expense		(3,624,601	)		1,476,785			(3,037,253	)		3,921,412
Income tax benefit (expense)		1,627,233			(616,491	)		1,393,895			(1,518,417	)
Net income (loss)		(1,997,368	)		860,294			(1,643,358	)		2,402,995
Less: Net income attributable to non-controlling interest		(18,699	)		(21,555	)		(33,813	)		(43,592	)
Net income (loss) attributable to Radiant Logistics, Inc.		(2,016,067	)		838,739			(1,677,171	)		2,359,403
Less: Preferred stock dividends		(511,387	)		(511,388	)		(1,022,775	)		(1,022,776	)
Net income (loss) attributable to common stockholders	$	(2,527,454	)	$	327,351		$	(2,699,946	)	$	1,336,627
Other comprehensive income (loss):
Foreign currency translation gain		566,888			—			1,421,485			—
Comprehensive income (loss)	$	(1,960,566	)	$	327,351		$	(1,278,461	)	$	1,336,627
Net income (loss) per common share - basic and diluted	$	(0.05	)	$	0.01		$	(0.06	)	$	0.04
Weighted average shares outstanding:
Basic shares		48,732,762			34,627,645			48,054,100			34,488,616
Diluted shares		48,732,762			36,184,653			48,054,100			36,005,995

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

4

RADIANT LOGISTICS, INC.

Condensed Consolidated Statement of Stockholders’ Equity

(unaudited)

	RADIANT LOGISTICS, INC. STOCKHOLDERS' EQUITY
	Preferred Stock				Common Stock				Additional Paid-in			Deferred			Retained			Accumulated Other Comprehensive			Non- Controlling			Total Stockholders’
	Shares		Amount		Shares		Amount		Capital			Compensation			Earnings			Income (Loss)			Interest			Equity
Balance as of June 30, 2015		839,200	$	839		42,563,224	$	24,018	$	74,658,960		$	(4,166	)	$	10,146,282		$	(394,547	)	$	61,588		$	84,492,974
Issuance of common stock    at $6.75 per share, net of    underwriting and offering    costs of $2,969,810		—		—		6,133,334		6,133		38,424,061			—			—			—			—			38,430,194
Issuance of common stock    to former Copper    Logistics shareholders at    $4.23 per share		—		—		7,385		7		31,243			—			—			—			—			31,250
Share-based compensation		—		—		—		—		756,006			—			—			—			—			756,006
Amortization of deferred    compensation		—		—		—		—		—			2,190			—			—			—			2,190
Cashless exercise of stock    options		—		—		39,638		40		(103,813	)		—			—			—			—			(103,773	)
Tax benefit from exercise of    stock options		—		—		—		—		60,293			—			—			—			—			60,293
Preferred dividends paid		—		—		—		—		—			—			(1,022,775	)		—			—			(1,022,775	)
Distribution to non-    controlling interest		—		—		—		—		—			—			—			—			(48,000	)		(48,000	)
Net income (loss)		—		—		—		—		—			—			(1,677,171	)		—			33,813			(1,643,358	)
Comprehensive income		—		—		—		—		—			—			—			1,421,485			—			1,421,485
Balance as of December 31,    2015		839,200	$	839		48,743,581	$	30,198	$	113,826,750		$	(1,976	)	$	7,446,336		$	1,026,938		$	47,401		$	122,376,486

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

5

RADIANT LOGISTICS, INC.

Condensed Consolidated Statements of Cash Flows

(unaudited)

	Six Months Ended December 31,
		2015			2014
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES
Net income (loss)	$	(1,643,358	)	$	2,402,995
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH PROVIDED BY    OPERATING ACTIVITIES
share-based compensation expense		758,196			451,568
amortization of intangibles		4,412,380			2,111,745
depreciation and leasehold amortization		1,811,473			267,049
deferred income tax benefit		(2,306,830	)		(239,959	)
amortization of loan fees		200,982			30,590
change in contingent consideration		186,233			(720,796	)
loss on impairment of acquired intangible assets		3,679,825			—
transition and lease termination costs		2,942,009			395,086
loss on disposal of fixed assets		111,398			—
change in (recovery of) provision for doubtful accounts		268,310			(142,343	)
CHANGE IN OPERATING ASSETS AND LIABILITIES:
accounts receivable		17,484,649			1,793,289
employee and other receivables		(8,316	)		(53,961	)
income tax deposit		(775,964	)		(1,085,303	)
prepaid expenses, deposits and other assets		704,380			(2,506,431	)
accounts payable and accrued transportation costs		(11,611,248	)		938,875
commissions payable		2,054,962			1,046,568
other accrued costs		(1,559,942	)		(74,535	)
other liabilities		(137,100	)		13,662
deferred rent liability		(206,381	)		9,184
lease termination liability		(682,443	)		(504,494	)
Net cash provided by operating activities		15,683,215			4,132,789
CASH FLOWS USED FOR INVESTING ACTIVITIES:
Acquisitions during the fiscal year, net of cash acquired		(800,000	)		(3,506,250	)
Purchase of furniture and equipment		(2,395,899	)		(1,226,880	)
Proceeds from sale of furniture and equipment		152,353			—
Payments to former shareholders of acquired operations		(683,593	)		—
Net cash used for investing activities		(3,727,139	)		(4,733,130	)
CASH FLOWS PROVIDED BY (USED FOR) FINANCING ACTIVITIES:
Proceeds from (repayments to) credit facility, net of credit fees		(34,706,116	)		1,085,941
Proceeds from notes payable		—			547,730
Repayment of notes payable		(84,879	)		—
Proceeds from stock offering, net of offering costs		38,430,194			—
Payments of contingent consideration		(1,469,233	)		(1,205,042	)
Payment of preferred stock dividends		(1,022,775	)		(1,022,796	)
Distributions to non-controlling interest		(48,000	)		(18,000	)
Payment of employee tax withholdings related to cashless stock option exercises		(103,773	)		(388,206	)
Tax benefit from exercise of stock options		60,293			438,078
Net cash provided by (used for) financing activities		1,055,711			(562,295	)
Effect of exchange rate changes on cash and cash equivalents		(153,619	)		—
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		12,858,168			(1,162,636	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		7,268,144			2,880,205
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	20,126,312		$	1,717,569
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Income taxes paid	$	2,063,857		$	2,416,933
Interest paid	$	2,621,794		$	153,936

(continued)

6

RADIANT LOGISTICS, INC.

Condensed Consolidated Statements of Cash Flows (continued)

(unaudited)

Supplemental disclosure of non-cash investing and financing activities:

In November 2014, the Company issued 52,452 shares of common stock at a fair value of $3.84 per share in satisfaction of $201,162 of the On Time Express, Inc. earn-out payment for the year ended June 30, 2014, resulting in a decrease to the current portion of contingent consideration, an increase to common stock of $52 and an increase to additional paid-in capital of $201,110.

In December 2014, the Company issued 43,221 shares of common stock at a fair value of $3.90 per share in satisfaction of $168,750 of the Don Cameron & Associates, Inc. purchase price, resulting in an increase to common stock of $43 and an increase to additional paid-in capital of $168,707.

In December 2015, the Company issued 7,385 shares of common stock at a fair value of $4.23 per share in satisfaction of $31,250 of the Copper Logistics, Incorporated purchase price, resulting in an increase to common stock of $7 and an increase to additional paid-in capital of $31,243.

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

7

RADIANT LOGISTICS, INC.

Notes to the Condensed Consolidated Financial Statements

(unaudited)

NOTE 1 – THE COMPANY AND BASIS OF PRESENTATION

The Company

Radiant Logistics, Inc. (the “Company”) operates as a third party logistics company, providing multi-modal transportation and logistics services primarily in the United States and Canada. The Company services a large and diversified account base consisting of consumer goods, food and beverage, manufacturing and retail customers which it supports from an extensive network of approximately 150 operating locations across North America. The Company provides these services through a multi-brand network comprised of Company-owned offices and locations operated by its strategic operating partners, as well as an integrated international service partner network located in other key markets around the globe. As a third party logistics company, the Company has approximately 10,000 asset-based transportation companies, including motor carriers, railroads, airlines and ocean lines, in its carrier network. The Company believes shippers value its services because it is able to objectively arrange the most efficient and cost-effective means, type and provider of transportation service without undue influence caused by the ownership of transportation assets. In addition, the Company’s minimal investment in physical assets affords it the opportunity for a higher return on invested capital and net cash flows than the Company’s asset-based competitors.

Through its operating locations across North America, the Company offers domestic and international air and ocean freight forwarding services and freight brokerage services including truckload services, less than truckload services and intermodal services, which is the movement of freight in trailers or containers by combination of truck and rail. The Company’s primary business operations involve arranging the shipment, on behalf of its customers, of materials, products, equipment and other goods that are generally larger than shipments handled by integrated carriers of primarily small parcels, such as FedEx, DHL and UPS, including arranging and monitoring all aspects of material flow activity utilizing advanced information technology systems. The Company also provides other value-added logistics services, including customs brokerage, order fulfillment, inventory management and warehousing services to complement its core transportation service offering.

The Company expects to grow its business organically and by completing acquisitions of other companies with complementary geographic and logistics service offerings. The Company’s organic growth strategy will continue to focus on strengthening existing and expanding new customer relationships leveraging the benefit of the Company’s new truck brokerage and intermodal service offerings, while continuing its efforts on the organic build-out of the Company’s network of strategic operating partner locations. In addition, as the Company continues to grow and scale the business, the Company is creating density in its trade lanes which creates opportunities for the Company to more efficiently source and manage our transportation capacity.

In addition to its focus on organic growth, it will continue to search for acquisition candidates that bring critical mass from a geographic standpoint, purchasing power and/or complementary service offerings to the current platform. As the Company continues to grow and scale the business, it remains focused on leveraging its back-office infrastructure to drive productivity improvement across the organization.

Interim Disclosure

The condensed consolidated financial statements included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. The Company’s management believes that the disclosures are adequate to make the information presented not misleading. These condensed financial statements should be read in conjunction with the financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2015.

The interim period information included in this Quarterly Report on Form 10-Q reflects all adjustments, consisting of normal recurring adjustments, that are, in the opinion of the Company’s management, necessary for a fair statement of the results of the respective interim periods. Results of operations for interim periods are not necessarily indicative of results to be expected for an entire year.

Basis of Presentation

The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries as well as a single variable interest entity, Radiant Logistics Partners, LLC (“RLP”), which is 40% owned by Radiant Global Logistics, Inc. (“RGL”), and 60% owned by Radiant Capital Partners, LLC (“RCP”, see Note 8), an affiliate of Bohn H. Crain, the Company’s Chief Executive Officer, whose accounts are included in the condensed consolidated financial statements. All significant intercompany balances and transactions have been eliminated.

8

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a) Use of Estimates

The preparation of financial statements and related disclosures in accordance with accounting principles generally accepted in the United States (“GAAP”) 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 revenue and expenses during the reporting period. Such estimates include revenue recognition, accruals for the cost of purchased transportation, the fair value of acquired assets and liabilities, changes in contingent consideration, accounting for the issuance of shares and share-based compensation, the assessment of the recoverability of long-lived assets and goodwill, and the establishment of an allowance for doubtful accounts. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the period that they are determined to be necessary. Actual results could differ from those estimates.

b) Fair Value Measurements

In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs utilize observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability.

c) Fair Value of Financial Instruments

The carrying values of the Company’s receivables, accounts payable and accrued transportation costs, commissions payable, other accrued costs, and the income tax deposit approximate the fair values due to the relatively short maturities of these instruments. The carrying value of the Company’s credit facility and other long-term liabilities would not differ significantly from fair value (based on Level 2 inputs) if recalculated based on current interest rates. Contingent consideration attributable to the Company’s acquisitions are reported at fair value using Level 3 inputs.

d) Cash and Cash Equivalents

For purposes of the statements of cash flows, cash equivalents include all highly liquid investments with original maturities of three months or less that are not securing any corporate obligations. Cash balances may at times exceed federally insured limits. Checks issued by the Company that have not yet been presented to the bank for payment are reported as accounts payable and commissions payable in the accompanying consolidated balance sheets. Accounts payable and commissions payable includes outstanding payments which had not yet been presented to the bank for payment in the amounts of $7,344,905 and $3,137,103 as of December 31, 2015 and June 30, 2015, respectively.

e) Concentrations

The Company maintains its cash in bank deposit accounts that, at times, may exceed federally-insured limits. The Company has not experienced any losses in such accounts.

f) Accounts Receivable

The Company’s receivables are recorded when billed and represent claims against third parties that will be settled in cash. The carrying value of the Company’s receivables, net of the allowance for doubtful accounts, represents their estimated net realizable value. The Company evaluates the collectability of accounts receivable on a customer-by-customer basis. The Company records a reserve for bad debts against amounts due to reduce the net recognized receivable to an amount the Company believes will be reasonably collected. The reserve is a discretionary amount determined from the analysis of the aging of the accounts receivables, historical experience and knowledge of specific customers.

9

The Company derives a substantial portion of its revenue through independently-owned strategic operating partner locations operating under the various Company brands. Each individual strategic operating partner is responsible for some or all of the bad debt expense related to the underlying customers being serviced by the office. To facilitate this arrangement, certain strategic operating partners are required to maintain a security deposit with the Company that is recognized as a liability in the Company’s financial statements. The Company charges each individual strategic operating partner’s bad debt reserve account for any accounts receivable aged beyond 90 days. However, the bad debt reserve account may carry a deficit balance when amounts charged to this reserve exceed amounts otherwise available in the bad debt reserve account. In these circumstances, deficit bad debt reserve accounts, as well as other deficit balances owed to us by our strategic operating partners, are recognized as a receivable in the Company’s financial statements. Other strategic operating partners are not responsible to establish a bad debt reserve, however, they are still responsible for deficits and their strategic operating partner agreements provide that the Company may withhold all or a portion of future commission checks payable to the individual operating partner in satisfaction of any deficit balance. Currently, a number of the Company’s operating partners have a deficit balance in their bad debt reserve account. The Company expects to replenish these funds through the future business operations of these operating partners. However, to the extent any of these operating partners were to cease operations or otherwise be unable to replenish these deficit accounts, the Company would be at risk of loss for any such amount.

g) Furniture and Equipment

Technology (computer software, hardware, and communications), vehicles, furniture, and equipment are stated at cost, less accumulated depreciation over the estimated useful lives of the respective assets. Depreciation is computed using three to fifteen year lives for vehicles, communication, office, furniture, and computer equipment using the straight line method of depreciation. Computer software is depreciated over a three year life using the straight line method of depreciation. For leasehold improvements, the cost is depreciated over the shorter of the lease term or useful life on a straight line basis. Upon retirement or other disposition of these assets, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss, if any, is reflected in other income or expense. Expenditures for maintenance, repairs and renewals of minor items are charged to expense as incurred. Major renewals and improvements are capitalized.

h) Goodwill

Goodwill represents the excess of purchase price over the value assigned to the net tangible and identifiable intangible assets of a business acquired. The Company typically performs its annual goodwill impairment test effective as of April 1 of each year, unless events or circumstances indicate impairment may have occurred before that time. The Company assesses qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. After assessing qualitative factors, the Company determined that no further testing was necessary. If further testing was necessary, the Company would have performed a two-step impairment test for goodwill. The first step requires the Company to determine the fair value of each reporting unit, and compare the fair value to the reporting unit’s carrying amount. To the extent a reporting unit’s carrying amount exceeds its fair value, an indication exists that the reporting unit’s goodwill may be impaired and the Company must perform a second more detailed impairment assessment. The second impairment assessment involves allocating the reporting unit’s fair value to all of its recognized and unrecognized assets and liabilities in order to determine the implied fair value of the reporting unit’s goodwill as of the assessment date. The implied fair value of the reporting unit’s goodwill is then compared to the carrying amount of goodwill to quantify an impairment charge as of the assessment date. As of December 31, 2015, management believes there are no indications of impairment.

i) Long-Lived Assets

Acquired intangibles consist of customer related intangibles, trade names and trademarks, and non-compete agreements arising from the Company’s acquisitions. Customer related intangibles are amortized using the straight-line method over a period of up to 10 years, trademarks and trade names are amortized using the straight line method over 15 years, and non-compete agreements are amortized using the straight line method over the term of the underlying agreements.

The Company reviews long-lived assets to be held-and-used for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable. If the sum of the undiscounted expected future cash flows over the remaining useful life of a long-lived asset is less than its carrying amount, the asset is considered to be impaired. Impairment losses are measured as the amount by which the carrying amount of the asset exceeds the fair value of the asset. When fair values are not available, the Company estimates fair value using the expected future cash flows discounted at a rate commensurate with the risks associated with the recovery of the asset. Assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell. As of December 31, 2015, the Company concluded it had a triggering event requiring assessment of customer related intangibles associated with the On Time Express, Inc. (“OTE”) acquisition due to a loss of customers. As a result, the Company reviewed the customer related intangibles and recorded an impairment loss of $3,679,825. The impairment was measured using future discounted cash flows using Level 3 inputs in the fair value hierarchy.

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j) Business Combinations  

The Company accounts for business combinations using the purchase method of accounting and allocates the purchase price to the tangible and intangible assets acquired and the liabilities assumed based upon their estimated fair values at the acquisition date. The difference between the purchase price and the fair value of the net assets acquired is recorded as goodwill. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, the estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded in the consolidated statements of income.

The fair values of intangible assets acquired are estimated using a discounted cash flow approach with Level 3 inputs. Under this method, an intangible asset’s fair value is equal to the present value of the incremental after-tax cash flows (excess earnings) attributable solely to the intangible asset over its remaining useful life. To calculate fair value, the Company uses risk-adjusted cash flows discounted at rates considered appropriate given the inherent risks associated with each type of asset. The Company believes the level and timing of cash flows appropriately reflects market participant assumptions.

The Company determines the acquisition date fair value of the contingent consideration payable based on the likelihood of paying the contingent consideration as part of the consideration transferred. The fair value is estimated using projected future operating results and the corresponding future earn-out payments that can be earned upon the achievement of specified operating objectives and financial results by our acquired companies using Level 3 inputs and the amounts are then discounted to present value. These liabilities are measured quarterly at fair value, and any change in the contingent liability is included in the consolidated statements of income.

k) Commitments

The Company has operating lease commitments for equipment rentals, office space, and warehouse space under non-cancelable operating leases expiring at various dates through May 2021. Rent expense is recognized straight line over the term of the lease. Minimum future lease payments (excluding the lease payments included in the lease termination liability) under these non-cancelable operating leases for the next five fiscal years ending June 30 and thereafter are as follows:

2016 (remaining portion)	$	2,797,523
2017		4,953,643
2018		3,384,768
2019		2,640,941
2020		1,666,244
Thereafter		975,485
Total minimum lease payments	$	16,418,604

Rent expense amounted to $1,402,522 and $2,878,909 for the three and six months ended December 31, 2015, respectively, and $451,662 and $975,278 for the three and six months ended December 31, 2014.

l) Lease Termination and Transition Costs

Lease termination costs consist of expenses related to future rent payments for which we no longer intend to receive any economic benefit. A liability is recorded when we cease to use leased space. Lease termination costs are calculated as the present value of lease payments, net of expected sublease income, and the loss on disposition of assets. Transition costs consist of nonrecurring personnel costs that will be eliminated in connection with the winding-down of the historical back-office of SBA and other operating locations     as well as the periodic expense of retention bonuses, estimated to be $735,000, which is being expensed over the requisite service period.

The transition and lease termination liability consists of the following:

	Lease Termination Costs			Severance Costs			Non-recurring Personnel Costs			Total
Balance as of June 30, 2015		255,272			28,500			—			283,772
Lease termination and transition costs		2,107,343			834,666			1,377,639			4,319,648
Payments and other		(744,779	)		(114,129	)		(1,377,639	)		(2,236,547	)
Balance as of December 31, 2015	$	1,617,836		$	749,037		$	—		$	2,366,873

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m) 401(k) Savings Plans

The Company has employee savings plans under which the Company provides matching contributions. The Company’s contributions under the plans were $152,877 and $299,409 for the three and six ended December 31, 2015, respectively, and $119,576 and $223,097 for the three and six months ended December 31, 2014.  

n) Income Taxes

Deferred income taxes are reported using the asset and liability method. Deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

The Company reports a liability for unrecognized tax benefits resulting from uncertain income tax positions taken or expected to be taken in an income tax return. Estimated interest and penalties, if any, are recorded as a component of interest expense or other expense, respectively.

o) Revenue Recognition and Purchased Transportation Costs

The Company is the primary obligor responsible for providing the service desired by the customer and is responsible for fulfillment, including the acceptability of the service(s) ordered or purchased by the customer. At the Company’s sole discretion, it sets the prices charged to its customers, and is not required to obtain approval or consent from any other party in establishing its prices. The Company has multiple suppliers for the services it sells to its customers, and has the absolute and complete discretion and right to select the supplier that will provide the product(s) or service(s) ordered by a customer, including changing the supplier on a shipment-by-shipment basis. In most cases, the Company determines the nature, type, characteristics, and specifications of the service(s) ordered by the customer. The Company also assumes credit risk for the amount billed to the customer.

As a non-asset based carrier, the Company generally does not own transportation assets. The Company generates the major portion of its freight forwarding revenues by purchasing transportation services from direct (asset-based) carriers and reselling those services to its customers. Based upon the terms in the contract of carriage, revenues related to shipments where the Company issues a House Airway Bill or a House Ocean Bill of Lading are recognized at the time the freight is tendered to the direct carrier at origin net of duties and taxes. Costs related to the shipments are also recognized at this same time based upon anticipated margins, contractual arrangements with direct carriers, and other known factors. The estimates are routinely monitored and compared to actual invoiced costs. The estimates are adjusted as deemed necessary by the Company to reflect differences between the original accruals and actual costs of purchased transportation.

This method generally results in recognition of revenues and purchased transportation costs earlier than the preferred methods under GAAP which does not recognize revenue until a proof of delivery is received or which recognizes revenue as progress on the transit is made. The Company’s method of revenue and cost recognition does not result in a material difference from amounts that would be reported under such other methods.

All other revenue, including revenue from other value-added services including brokerage services, warehousing and fulfillment services, is recognized upon completion of the service.

p) Share-Based Compensation

The Company has issued restricted stock awards and stock options to certain directors, officers and employees. The Company accounts for share-based compensation under the fair value recognition provisions such that compensation cost is measured at the grant date based on the value of the award and is expensed ratably over the vesting period. Determining the fair value of share-based awards at the grant date requires judgment, including estimating the percentage of awards that will be forfeited, stock volatility, the expected life of the award, and other inputs. If actual forfeitures differ significantly from the estimates, share-based compensation expense and the Company’s results of operations could be materially impacted. The Company issues new shares of common stock to satisfy exercises and vesting of awards granted under our stock plan.

The Company recorded share-based compensation expense of $368,097 and $758,196 for the three and six months ended December 31, 2015, respectively, and $246,839 and $451,568 for the three and six months ended December 31, 2014.

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q) Basic and Diluted Income Per Share  

Basic income per share is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding. Diluted income per share is computed similar to basic income per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares, such as stock awards and stock options, had been issued and if the additional common shares were dilutive. Net income attributable to common stockholders is calculated after earned preferred stock dividends, whether or not declared.

For the three months ended December 31, 2015, the weighted average outstanding number of potentially dilutive common shares totaled 48,732,762 shares of common stock. Unvested restricted stock awards and options to purchase 4,519,086 shares of common stock were excluded from the diluted income per share for the three months ended December 31, 2015 as there was a net loss in the period and their effect would have been antidilutive. For the three months ended December 31, 2014, the weighted average outstanding number of potentially dilutive common shares totaled 36,184,653 shares of common stock, including unvested restricted stock awards and options to purchase 5,356,821 shares of common stock as of December 31, 2014, of which 946,536 were excluded as their effect would have been antidilutive.

For the six months ended December 31, 2015, the weighted average outstanding number of potentially dilutive common shares totaled 48,054,100 shares of common stock. Unvested restricted stock awards and options to purchase 4,519,086 shares of common stock were excluded from the diluted income per share for the six months ended December 31, 2015, as there was a net loss in the period and their effect would have been antidilutive. For the six months ended December 31, 2014, the weighted average outstanding number of potentially dilutive common shares totaled 36,005,995 shares of common stock, including unvested restricted stock awards and options to purchase 5,356,821 shares of common stock as of December 31, 2014, of which 980,627 were excluded as their effect would have been antidilutive.

The following table reconciles the numerator and denominator of the basic and diluted per share computations for earnings per share as follows:

	Three months ended December 31,				Six months ended December 31,
	2015		2014		2015		2014
Weighted average basic shares outstanding		48,732,762		34,627,645		48,054,100		34,488,616
Dilutive effect of share-based awards		—		1,557,008		—		1,517,379
Weighted average dilutive shares outstanding		48,732,762		36,184,653		48,054,100		36,005,995

r) Foreign Currency Translation

For the Company’s significant foreign subsidiaries that prepare financial statements in currencies other than U.S. dollars, the local currency is the functional currency. All assets and liabilities are translated at period-end exchange rates and all income statement amounts are translated at the weighted average rates for the period. Translation adjustments are recorded in accumulated other comprehensive (loss) income. Gains and losses on transactions of monetary items are recognized in the consolidated statements of operations.

s) Reclassifications

Certain amounts for prior periods have been reclassified in the Company’s consolidated financial statements to conform to the classification used in fiscal year 2016.

t) Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, to clarify the principles used to recognize revenue for all entities. The guidance is effective for annual and interim periods beginning after December 15, 2017, and early adoption is permitted. The Company is currently evaluating the impact, if any, that the adoption of this guidance will have on the Company’s consolidated financial statements and related disclosures.

In April 2015, the FASB issued ASU 2015-03, Imputation of Interest, requiring entities to present debt issuance costs related to a debt liability as a reduction of the carrying amount of that liability. In August 2015, the FASB issued ASU 2015-15 to provide additional guidance related to debt issuance costs related to line-of-credit arrangements. The guidance is effective for annual and interim periods beginning after December 15, 2015, and early adoption is permitted. The Company is currently evaluating the impact, if any, that the adoption of this guidance will have on the Company’s consolidated financial statements and related disclosures.

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NOTE 3 – BUSINESS ACQUISITIONS

Fiscal Year 2016 Acquisition

Copper Logistics, Incorporated

On November 20, 2015, the Company acquired the operations and assets of Copper Logistics, Incorporated (“Copper”), a Minneapolis, Minnesota based company that provides a full range of domestic and international transportation and logistics services across North America. The Company has structured the transaction similar to previous acquisitions, with a portion of the expected purchase price payable in subsequent periods based on future performance of the acquired operation.

Fiscal Year 2015 Acquisitions

Wheels Group, Inc.

On April 2, 2015, the Company acquired the outstanding stock of Wheels Group Inc. (“Wheels”). Under an Arrangement Agreement (the “Arrangement”), the Company purchased Wheels for approximately $26.9 million in cash and 6,900,000 shares of common stock. The Company was also responsible for a portion of Wheels’ transaction costs, in addition to its own costs. Wheels, founded in 1988, provides truck brokerage and intermodal services throughout the United States and Canada along with value added warehouse and distribution service offerings in support of U.S. shippers looking to access the Canadian markets. Wheels is one of the largest third party logistics providers in Canada. Wheels, now formally amalgamated into Wheels International, Inc., provides these services primarily to the food and beverage, consumer packaged goods, frozen foods and refrigerated product, and building products industries. The goodwill recognized is attributable to a larger geographic footprint and an increased service line expansion and is not deductible for tax purposes. The results of operations for Wheels are included in the Company’s financial statements as of the date of purchase.

Service by Air, Inc.

On June 8, 2015, the Company acquired the outstanding stock of Service by Air, Inc. (“SBA”), a privately-held New York corporation founded in 1976. SBA is a domestic and international freight forwarder serving manufacturers, distributors and retailers through a combination of three company-owned operating locations and forty independent operating partners across North America. The base purchase price was approximately $12.25 million, consisting of $11.4 million paid in cash at closing, and $0.85 million payable net of working capital and other holdbacks. The goodwill recognized is attributable primarily to the expected cost synergies associated with eliminating redundancies and migrating back-office operations of SBA to the Company and is not deductible for tax purposes. The results of operations for SBA are included in the Company’s financial statements as of the date of purchase.

Other acquisitions

On September 1, 2014, through a wholly-owned subsidiary, the Company acquired the assets and operations of Trans-Net, Inc. (“TNI”), a privately-held company based in Issaquah, Washington. TNI has extensive experience providing integrated project logistics solutions in key Russian oil, gas, mining and infrastructure development markets. On December 15, 2014, through a wholly-owned subsidiary, the Company acquired the assets and operations of Don Cameron & Associates, Inc. (“DCA”), a privately-held company based in Minneapolis, Minnesota. DCA has extensive experience providing a full range of domestic and international transportation and logistics services across North America to the med-tech, advertising/marketing, pharmaceutical, and trade show industries. Effective as of June 1, 2015, through a wholly-owned subsidiary, the company acquired the stock of Highways and Skyways, Inc. (“Highways”), a privately-held company based near Cincinnati, Ohio. Highways services a full range of domestic and international transportation and logistics services to manufacturing, apparel, paper products, medical devices, consumer products and technology industries. Each of the TNI, DCA and Highways acquisitions include earn-out payments that are payable upon achieving certain earnings up to a maximum contingent consideration of $6.5 million, although there are no maximums on certain of the earn-out payments.

Each of the TNI, DCA, Highways, and Copper acquisitions were financed with proceeds from the Company’s Credit Facility (as defined in Note 6), and the transactions were structured using cash, stock, and earn-out payments. The goodwill recorded is expected to be deductible for income tax purposes over a period of 15 years. The consideration paid, purchase price, and pro forma results of operations have not been presented because the effect of these acquisitions was not material to the condensed consolidated financial statements.

The results of operations for the businesses acquired are included in our financial statements as of the date of purchase. The preliminary fair value estimates for the assets acquired and liabilities assumed are based upon preliminary calculations and valuations and our estimates and assumptions are subject to change as we obtain additional information for our estimates during the respective measurement periods (up to one year from the acquisition date). The primary areas of the preliminary estimates for Wheels, SBA, Highways and Copper not yet finalized relates to certain tangible assets and liabilities acquired, and identifiable intangible assets.

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NOTE 4 – FURNITURE AND EQUIPMENT

	December 31,			June 30,
	2015			2015
Vehicles	$	5,030,898		$	5,384,161
Communication equipment		179,817			111,790
Office and warehouse equipment		490,532			471,915
Furniture and fixtures		598,126			585,820
Computer equipment		1,613,426			1,364,648
Computer Software		8,807,964			7,209,965
Leasehold improvements		1,498,551			1,324,437
		18,219,314			16,452,736
Less: Accumulated depreciation and amortization		(4,906,620	)		(3,276,846	)
	$	13,312,694		$	13,175,890

Depreciation and amortization expense related to furniture and equipment was $901,025 and $1,811,473 for the three and six months ended December 31, 2015, respectively, and $139,451 and $267,049 for the three and six months ended December 31, 2014, respectively.

NOTE 5 – ACQUIRED INTANGIBLE ASSETS

The table below reflects acquired intangible assets related to all acquisitions:

	December 31,			June 30,			Weighted-Average
	2015			2015			Life
Customer related	$	85,823,815		$	88,287,640		8.6 years
Trade names and trademarks		14,069,000			14,069,000		14.3 years
Covenants not to compete		740,000			730,000		2.1 years
		100,632,815			103,086,640
Less: Accumulated amortization		(24,544,338	)		(20,131,958	)
	$	76,088,477		$	82,954,682

Amortization expense amounted to $2,217,829 and $4,412,380 for the three and six months ended December 31, 2015, respectively, and $960,262 and $2,111,745 for the three and six months ended December 31, 2014, respectively. Future amortization expense for the fiscal years ending June 30 are as follows:

2016 (remaining portion)	$	4,147,962
2017		8,266,924
2018		8,232,257
2019		8,200,924
2020		8,088,741
Thereafter		39,151,669
	$	76,088,477

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NOTE 6 – NOTES PAYABLE AND OTHER LONG TERM DEBT

Notes payable and other long-term debt consist of the following:

	December 31,			June 30,
	2015			2015
Long-term Credit Facility	$	3,001,570		$	37,707,686
Senior Secured Loan		20,962,940			23,218,575
Subordinated Secured Loan		25,000,000			25,000,000
Other notes payable		424,461			509,340
Total notes payable and other long-term debt		49,388,971			86,435,601
Less: Current portion		(1,537,628	)		(543,086	)
Total notes payable, net of current portion	$	47,851,343		$	85,892,515

Future maturities of notes payable and other long-term debt for the years ending June 30 are as follows:

2016 (remaining portion)	$	422,478
2017		2,266,155
2018		2,364,441
2019		5,372,711
2020		2,533,717
Thereafter		36,429,469
	$	49,388,971

Bank of America Credit Facility

The Company has a $65.0 million senior credit facility (the “Credit Facility”) with Bank of America, N.A. (the “Lender”) on its own behalf and as agent to the other lenders named therein, currently consisting of the Bank of Montreal (as the initial member of the syndicate under such loan), pursuant to an Amended and Restated Loan and Security Agreement. The Credit Facility includes a $2.0 million sublimit to support letters of credit and matures August 9, 2018.

Borrowings accrue interest based on the Company’s fixed charge coverage ratio at the Lender’s base rate plus 0.0% to 0.50% or LIBOR plus 1.50% to 2.25%. The Credit Facility provides for advances of up to 85% of the eligible Canadian and domestic accounts receivable, 75% of eligible accrued but unbilled domestic receivables and eligible foreign accounts receivable, all of which are subject to certain sub-limits, reserves and reductions. The Credit Facility is collateralized by a first-priority security interest in all of the assets of the U.S. co-borrowers, a first-priority security interest in all of the accounts receivable and associated assets of the Canadian co-borrowers (the “Canadian A/R Assets”) and a second-priority security interest on the other assets of the Canadian borrowers.

Borrowings are available to fund future acquisitions, capital expenditures, repurchase of Company stock or for other corporate purposes. The terms of the Credit Facility are subject to customary financial and operational covenants, including covenants that may limit or restrict the ability to, among other things, borrow under the Credit facility, incur indebtedness from other lenders, and make acquisitions. As of December 31, 2015, the Company was in compliance with all of its covenants.

As of December 31, 2015, based on available collateral and $286,800 in outstanding letter of credit commitments, there was $46,917,000 available for borrowing under the Credit Facility and excluding any availability attributable to accounts receivable of SBA.

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Senior Secured Loan

In connection with the Company’s acquisition of Wheels, Wheels obtained a CAD$29.0 million senior secured Canadian term loan from Integrated Private Debt Fund IV LP (“IPD”) pursuant to a CAD$29,000,000 Credit Facilities Loan Agreement (the “IPD Loan Agreement”). The Company and its U.S. and Canadian subsidiaries are guarantors of the Wheels obligations thereunder. The loan matures on April 1, 2024 and accrues interest at a rate of 6.65% per annum. The Company is required to maintain 5 months interest in a debt service reserve account to be controlled by IPD. This amount is recorded as deposits and other assets in the accompanying condensed consolidated financial statements. The loan repayment consists of interest-only payments for the first 12 months followed by blended principal and interest payments for the next eight years. The loan may be prepaid in whole at any time upon providing at least 30 days prior written notice and paying the difference between (i) the present value of the loan interest and the principal payments foregone discounted at the Government of Canada Bond Yield for the term from the date of prepayment to April 1, 2024, and (ii) the face value of the principal amount being prepaid. As of December 31, 2015, the Company was in compliance with all of its covenants.

The loan is collateralized by a (i) first-priority security interest in all of the assets of Wheels except the Canadian A/R Assets, (ii) a second-priority security interest in the Canadian A/R Assets, and (iii) a second-priority security interest on all of the Company’s assets.

Subordinated Secured Loan

In connection the Company’s acquisition of Wheels, the Company obtained a $25.0 million subordinated secured term loan from Alcentra Capital Corporation ($10.0 million) and Triangle Capital Corporation ($15.0 million) (collectively, the “Subordinated Lenders”) pursuant to a Loan and Security Agreement (the “Alcentra/Triangle Subordinated Loan Agreement”). The loan matures on April 2, 2021 and accrues interest at a rate of 12% per annum during the first six months of the loan and then at a variable rate, ranging from LIBOR plus 950 basis points to LIBOR plus 1025 basis points (all with a 100 basis points LIBOR floor), depending on the Company’s total leverage ratio. Prior to April 2, 2016, the loan may not be prepaid. After this, prior to April 2, 2017, the loan may be prepaid by paying a prepayment premium equal to 3% of the amount prepaid. After April 2, 2017, the loan may be prepaid, in whole or in part, without penalty. The Company may be required to prepay, at the Subordinated Lenders’ option, the entire amount of the loan (including applicable prepayment premiums) upon the occurrence of certain events, such as an event of default, a change in control, or the completion of a “going private” transaction. As of December 31, 2015, the Company was in compliance with all of its covenants.

The loan is collateralized by a third-priority security interest in all of the Company’s U.S. based assets. The loan is subordinate to the Senior Credit Facility and the loan from IPD, and is senior to all other indebtedness.

NOTE 7 – STOCKHOLDERS’ EQUITY

The Company is authorized to issue 5,000,000 shares of preferred stock, par value at $0.001 per share and 100,000,000 shares of common stock, $0.001 per share.

Series A Preferred Stock

The Company has 839,200 outstanding shares of 9.75% Series A Cumulative Redeemable Perpetual Preferred Stock (“Series A Preferred Shares”) liquidation preference $25 per share. Dividends on the Series A Preferred Shares are cumulative from the date of original issue and are payable on January 31, April 30, July 31 and October 31, as and if declared by the Company’s Board of Directors. If the Company does not pay dividends in full on any two payment dates (whether consecutive or not), the per annum dividend rate will increase an additional 2.0% per annum per $25.00 stated liquidation preference, up to a maximum of 19.0% per annum. If the Company fails to maintain the listing of the Series A Preferred Shares on the NYSE MKT or other exchange for 30 days or more, the per annum dividend rate will increase by an additional 2.0% per annum so long as the listing failure continues. The Series A Preferred Shares require the Company to maintain a Fixed Charge Coverage Ratio of at least 2.0. If the Company is not in compliance with this ratio, then it cannot pay any dividend on its common stock. As of December 31, 2015, the Company was in compliance with this ratio.

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Commencing on December 20, 2018, the Company may redeem, at its option, the Series A Preferred Shares, in whole or in part, at a cash redemption price of $25.00 per share plus accrued and unpaid dividends (whether or not declared). Among other things, the Series A Preferred Shares have no stated maturity, are not subject to any sinking fund or other mandatory redemption, and are not convertible into or exchangeable for any of the Company’s other securities. Holders of Series A Preferred Shares generally have no voting rights, except if the Company fails to pay dividends on the Series A Preferred Shares for six or more quarterly periods (whether consecutive or not). Under such circumstances, holders of Series A Preferred Shares will be entitled to vote to elect two additional directors to the Company’s Board of Directors, until all unpaid dividends have been paid or declared and set aside for payment. In addition, certain changes to the terms of the Series A Preferred Shares cannot be made without the affirmative vote of the holders of two-thirds of the outstanding Series A Preferred Shares, voting as a separate class. The Series A Preferred Shares are senior to the Company’s common stock with respect to dividends and distributions, including distributions upon liquidation, dissolution or winding up. The Series A Preferred Shares are listed on the NYSE MKT under the symbol “RLGT-PA.”

For the six months ended December 31, 2015, the Company’s board of directors declared and paid a cash dividend to holders of Series A Preferred Shares in the amount of $1.218750 per share, totaling $1,022,775.

Common Stock

On July 16, 2015, the Company closed a registered underwritten public offering of 6,133,334 shares of common stock, including the full exercise of the underwriters’ overallotment option. Proceeds from the offering totaled $38,430,194 after deducting the underwriting discount of $2,484,000 and offering costs of $485,810. The proceeds were used to reduce the borrowings under the Credit Facility.

NOTE 8 – VARIABLE INTEREST ENTITY AND RELATED PARTY TRANSACTIONS

RLP is owned 40% by RGL and 60% by RCP, a company for which the Chief Executive Officer of the Company is the sole member. RLP is a certified minority business enterprise that was formed for the purpose of providing the Company with a national accounts strategy to pursue corporate and government accounts with diversity initiatives. RCP’s ownership interest entitles it to a majority of the profits and distributable cash, if any, generated by RLP. The operations of RLP are intended to provide certain benefits to the Company, including expanding the scope of services offered by the Company and participating in supplier diversity programs not otherwise available to the Company. In the course of evaluating and approving the ownership structure, operations and economics emanating from RLP, a committee consisting of the independent Board member of the Company, considered, among other factors, the significant benefits provided to the Company through association with a minority business enterprise, particularly as many of the Company’s largest current and potential customers have a need for diversity offerings. In addition, the Committee concluded that the economic relationship with RLP was on terms no less favorable to the Company than terms generally available from unaffiliated third parties.

Certain entities in which equity investors do not have the characteristics of a controlling financial interest or do not have the sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties are considered “variable interest entities”. RLP qualifies as a variable interest entity and is included in the Company’s condensed consolidated financial statements.

RLP recorded $31,166 and $56,356 in profits, of which RCP’s distributable share was $18,699 and $33,813, for the three and six months ended December 31, 2015, respectively. RLP recorded $35,925 and $72,654 in profits, of which RCP’s distributable share was $21,555 and $43,592, for the three and six months ended December 31, 2014. The non-controlling interest recorded as a reduction of income on the condensed consolidated statements of operations represents RCP’s distributive share.

NOTE 9 – FAIR VALUE MEASUREMENTS

The following table sets forth the Company’s financial liabilities measured at fair value on a recurring basis:

	Fair Value Measurements as of December 31, 2015
	Level 3		Total
Contingent consideration	$	6,755,000	$	6,755,000

	Fair Value Measurements as of June 30, 2015
	Level 3		Total
Contingent consideration	$	7,613,000	$	7,613,000

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The Company has contingent obligations to transfer cash payments and equity shares to former shareholders of acquired operations in conjunction with certain acquisitions if specified operating results and financial objectives are met over the next four fiscal years. Contingent consideration is measured quarterly at fair value, and any change in the contingent liability is included in the condensed consolidated statements of operations. The Company recorded an increase to contingent consideration of $598,233 and $186,233 for the three and six months ended December 31, 2015, respectively, and a decrease to contingent consideration of $170,796 and $720,796 for the three and six months ended December 31, 2014, respectively. The change in the current period is principally attributable to a reduction in management’s estimates of future pay-outs for OTE, offset by an increase in management’s estimated future pay-out for DCA.

The Company uses projected future financial results based on recent and historical data to value the anticipated future earn-out payments. To calculate fair value, the future earn-out payments were then discounted using Level 3 inputs. The Company has classified the contingent consideration as Level 3 due to the lack of relevant observable market data over fair value inputs. The Company believes the discount rate used to discount the earn-out payments reflects market participant assumptions. Changes in assumptions and operating results could have a significant impact on the earn-out amount, up to a maximum of $20,510,000 through earn-out periods measured through November 2019, although there are no maximums on certain earn-out payments. Contingent consideration is net of advances on earn-out payments of $0.8 million.

The following table provides a reconciliation of the beginning and ending liabilities for the liabilities measured at fair value using significant unobservable inputs (Level 3):

	Contingent Consideration
Balance as of June 30, 2015	$	7,613,000
Increase related to accounting for acquisition		425,000
Contingent consideration paid		(1,469,233	)
Change in fair value		186,233
Balance as of December 31, 2015	$	6,755,000

NOTE 10 – PROVISION FOR INCOME TAXES

	Three months ended December 31,					Six months ended December 31,
	2015			2014		2015			2014
Current income tax expense	$	244,441		$	611,252	$	912,935		$	1,758,376
Deferred income tax benefit		(1,871,674	)		5,239		(2,306,830	)		(239,959	)
Income tax expense (benefit)	$	(1,627,233	)	$	616,491	$	(1,393,895	)	$	1,518,417

Our effective tax rate is higher than the U.S. federal statutory rate primarily due to state income taxes and the fact that the Company has a loss in a foreign jurisdiction that is being benefitted at a lower foreign rate. This is partially offset by a benefit for a nontaxable gain related to contingent consideration.

Tax years which remain subject to examination by federal authorities are the years ended June 30, 2012 through June 30, 2015. Tax years which remain subject to examination by state authorities are the years ended June 30, 2011 through June 30, 2015.

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NOTE 11 – SHARE-BASED COMPENSATION

Stock Awards

The Company granted restricted stock awards to certain employees in August 2012. The shares are restricted in transferability for a term of up to five years and are forfeited in the event the employee terminates employment prior to the lapse of the restriction. The awards generally vest ratably over a five year period. The Company recognized share-based compensation expense related to stock awards of $929 and $2,190 during the three and six months ended December 31, 2015, respectively, and $1,261 and $2,522 during the three and six months ended December 31, 2014, respectively. The following table summarizes stock award activity under the plan:

	Number of Shares			Weighted Average Grant- date Fair Value
Balance as of June 30, 2015		4,577		$	1.62
Vested		(3,113	)		1.62
Balance as of December 31, 2015		1,464		$	1.62

Stock Options

The Company recognized share-based compensation expense related to stock options of $367,168 and $756,006 for the three and six months ended December 31, 2015, respectively, and $245,578 and $449,046 in the three and six months ended December 31, 2014, respectively. The aggregate intrinsic value of options exercised was $46,127 and $326,573 for the three and six months ended December 31, 2015, respectively, and $102,825 and $1,378,148 for the three and six months ended December 31, 2014, respectively.

During the six months ended December 31, 2015, the weighted average fair value per share of employee stock options granted was $2.28. The fair value of each stock option grant is estimated as of the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions:

	Six Months Ended December31, 2015
Risk-Free Interest Rate	1.57 - 1.92%
Expected Term	6.5 years
Expected Volatility	46.60 - 53.49%
Expected Dividend Yield		0.00%

The following table summarizes the activity under the plan:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value
Outstanding as of June 30, 2015		4,509,887		$	2.80		7.75	$	20,357,403
Granted		350,000			4.37		10.00		—
Exercised		(109,813	)		2.46		—		—
Forfeited		(232,452	)		3.19		—		—
Outstanding as of December 31, 2015		4,517,622		$	2.91		7.39	$	4,369,421
Exercisable as of December 31, 2015		1,542,416		$	1.62		5.34	$	2,843,265

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NOTE 12 – CONTINGENCIES

Legal Proceedings

DBA Distribution Services, Inc. – Bretta Santini Pollara v. Radiant Logistics, Inc., United States District Court, Central District of California, Case No. 12-344 GAF

In December 2012, an arbitrator awarded the Company damages from the former shareholders of DBA, finding that the former shareholders breached certain representations and warranties contained in the DBA Agreement. In addition, the arbitrator found that Paul Pollara breached his noncompetition obligation to the Company and enjoined Mr. Pollara from engaging in any activity in contravention of his obligations of noncompetition and non-solicitation, including activities that relate to Santini Productions and his spouse, Bretta Santini Pollara until March 2016. The award also provided that the former DBA Shareholders and Mr. Pollara must pay to the Company the administrative fees, compensation and expenses of the arbitrator associated with the arbitration. The award has been off-set against amounts due to former shareholders of acquired operations. The gain on litigation settlement was recorded net of judgment interest and associated legal costs.

In a related matter, in December 2011, Ms. Pollara filed a claim for declaratory relief against the Company seeking an order stipulating that she is not bound by the non-compete covenant contained within the DBA Agreement signed by her husband, Mr. Pollara. On January 23, 2012, the Company filed a counterclaim against Ms. Pollara, her company Santini Productions, Daniel Reffner (a former employee of the Company now working for Ms. Pollara), and Oceanair, Inc. (“Oceanair”, a company doing business with Santini Productions). The Company’s counterclaim alleges claims for statutory and common law misappropriation of trade secrets, breach of duty of loyalty, and unfair competition, and sought damages in excess of $1,000,000.

On April 25, 2014, a jury returned a verdict in the Company’s favor in the amount of $1,500,000, but the judge entered a judgment notwithstanding the verdict and dismissed the case. The Company has filed a notice of appeal with the 9^th Circuit Court of Appeals. Santini and Oceanair also appealed the trial court’s denial of fees. Both issues are fully briefed, and the trial date with the Court of Appeals has been set for May 2016. Due to the uncertainty associated with the litigation and judicial review process, the Company is unable at this time to express an opinion as to the outcome of this matter.

Ingrid Barahoma v. Accountabilities, Inc. d/b/a/ Accountabilities Staffing, Inc., Radiant Global Logistics, Inc. and DBA Distribution Services, Inc. (Ingrid Barahona California Class Action)

On October 25, 2013, plaintiff Ingrid Barahona filed a purported class action lawsuit against RGL, DBA Distribution Services, Inc. (“DBA”), and two third-party staffing companies (collectively, the “Staffing Defendants”) with whom Radiant and DBA contracted for temporary employees. In the lawsuit, Ms. Barahona, on behalf of herself and the putative class, seeks damages and penalties under California law, plus interest, attorneys’ fees, and costs, along with equitable remedies, alleging that she and the putative class were the subject of unfair and unlawful business practices, including certain wage and hour violations relating to, among others, failure to provide meal and rest periods, failure to pay minimum wages and overtime, and failure to reimburse employees for work-related expenses. Ms. Barahona alleges that she was jointly employed by the staffing companies and Radiant and DBA. Radiant and DBA deny Ms. Barahona’s allegations in their entirety, deny that they are liable to Ms. Barahona or the putative class members in any way, and are vigorously defending against these allegations based upon a preliminary evaluation of applicable records and legal standards.

If Ms. Barahona’s allegations were to prevail on all claims the Company, as well as its co-defendants, could be liable for uninsured damages in an amount that, while not significant when evaluated against either the Company’s assets or current and expected level of annual earnings, could be material when judged against the Company’s earnings in the particular quarter in which any such damages arose, if at all. However, based upon the Company’s preliminary evaluation of the matter, it does not believe it is likely to incur material damages, if at all, since, among others: (i) the amount of any potential damages remains highly speculative at this stage of the proceedings; (ii) the Company does not believe as a matter of law it should be characterized as Ms. Barahona’s employer and co-defendant Accountabilities admitted to being the employer of record, (iii) any settlement will be properly apportioned between all named defendants and Radiant and DBA will not exclusively fund the settlement; (iv) wage and hour class actions of this nature typically settle for amounts significantly less than plaintiffs’ demands because of the uncertainly with litigation and the difficulty in taking these types of cases to trial; and (v) Plaintiff has indicated her desire to resolve this matter through a mediated settlement. Plaintiff recently admitted in a report to the court that she is unable to prosecute the case because the payroll and personnel records she needs are in the possession of Tri-State and/or Accountabilities, and the case has been stayed as to them pending resolution of their chapter 11 bankruptcy proceedings. In January 2016, the court held a status conference, which has since been continued until May 2016 so the parties can attempt to obtain the necessary documents. The parties are in the process of trying to obtain the records. At this time, the Company is unable to express an opinion as to the likely outcome of the matter.

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High Protection Company, a Utah Corporation, Plaintiff v. Professional Air Transportation, LLC, a Utah Limited Liability Company, d/b/a ADCOM, SLC; Radiant Logistics, Inc., a Foreign Corporation; ADCOM World-Wide,, an Operating Division of Radiant Logistics, Inc.; Radiant Global Logistics, Inc., a Foreign Corporation, d/b/a Container Lines; Felipe Lake, an Individual, Rubens Correa, an Individual; and Does 1-100, Defendants, United States District Court for the District Court of Utah (Central), Civil Docket No. 2:14-cv-00466-TC-BCW (formerly Salt Lake County, Utah, Case # 140902965)

On or about May 27, 2014, the Company, together with its co-defendants, including certain of its subsidiaries, were sued in the Third Judicial District Court, Salt Lake County, State of Utah. The matter was subsequently removed to the Federal Courts in the United States District Court, for the District of Utah. The lawsuit alleges liability and damages arising from the ocean shipment of five (5) armored vehicles from Jordan to the Kandahar Air Base, Afghanistan, commencing in August, 2011.

On April 10, 2011, the Plaintiff, High Protection Company, was awarded a contract from the United States Army in the amount of $716,000 for the manufacture and delivery of five armored vehicles. The vehicles were to be delivered to the Kandahar Airfield in Kandahar, Afghanistan, by May 16, 2011. The delivery of the vehicles was delayed into 2013 due to various delays that occurred during the shipping process, including the closing of the border between Pakistan and Afghanistan from November 2011 to July 2012. In June 2013, the United States Army terminated its contract with the Plaintiff. Plaintiff asserted damages against the Company and its co-defendants in excess of $1,000,000, including loss of a $716,000 contract with the United States Army, demurrage and storage charges now alleged to exceed $200,000, and loss of the vehicles.

Based upon the Company’s preliminary understanding of the claims, it does not believe it is likely to be exposed to damages, or damages that are material, since, among others: (i) the Company is insured for claims of this nature subject to a $1,000,000 aggregate limit for all claims made and reported during the policy period (subject to a typical reservation of rights letter received from the Underwriter); (ii) the Company believes the Plaintiff’s losses, if any, were due, to a material extent, to its own contributory negligence; and (iii) the Plaintiff’s claim should be limited as a result of the limitations upon liability contained within the air bill of lading and other shipping documents used in the transaction.

In compliance with an Amended Scheduling Order, discovery has continued, and expert discovery has been scheduled. The Amended Scheduling Order permits amendment of pleadings, joinder of parties; expert discovery, dispositive motions, and final pre-trial conferences. The Amended Scheduling Order also includes scheduling for a potential jury trial date in December 2016. Plaintiff and Defendants have filed Motions for Summary Judgment with supporting Memoranda. An Order granting a Motion to Stay Proceedings was granted in December 2015 for purposes of a pending Mediation scheduled to commence in February 2016. Since the proceeding remains in its early stages, the Company is unable at this time to express an opinion as to the outcome of this matter.

The Company is involved in various other claims and legal actions arising in the ordinary course of business, some of which are in the very early stages of litigation and therefore difficult to judge their potential materiality. For those claims for which we can judge the materiality, in the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations or liquidity. Legal expenses are expensed as incurred.

Contingent Consideration and Earn-out Payments

The Company’s agreements with respect to previous acquisitions contain future consideration provisions which provide for the selling shareholder(s) to receive additional consideration if specified operating objectives and financial results are achieved in future periods, as defined in their respective agreements. Any changes to the fair value of the contingent consideration are recorded in the consolidated statements of operations. Earn-out payments are generally due annually on November 1, and 90 days following the quarter of the final earn-out period for each respective acquisition.

The following table represents the estimated undiscounted earn-out payments to be paid in each of the following fiscal years:

	2016(remaining)		2017		2018		2019		2020		Total
Earn-out payments (in thousands):
Cash	$	110	$	2,891	$	2,164	$	241	$	144	$	5,550
Equity		—		964		721		80		48		1,813
Total estimated earn-out payments (1)	$	110	$	3,855	$	2,885	$	321	$	192	$	7,363

(1) The Company generally has the right but not the obligation to satisfy a portion of the earn-out payments in stock.

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NOTE 13 – OPERATING AND GEOGRAPHIC SEGMENT INFORMATION

Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker, or decision-making group, in making decisions regarding allocation of resources and assessing performance. The Company’s chief operating decision-maker is the Chief Executive Officer. With the recent acquisition of Wheels, the Company has determined that it has two geographic operating segments: United States and Canada. Immaterial operations outside of the United States and Canada are reported in the United States segment.

The Company evaluates the performance of the segments primarily based on their respective revenues, net revenues and income from operations. Accordingly, capital expenditures and total assets are not reported in segment results. In addition, the Company has disclosed a corporate segment, which is not an operating segment and includes the costs of the Company’s executives, board of directors, professional services such as legal and consulting, amortization of intangible assets and certain other corporate costs associated with operating as a public company. Intercompany transactions have been eliminated in the condensed consolidated balance sheets and statements of operations.

Three months ended December 31, 2015 (in thousands)	United States		Canada			Corporate/ Eliminations			Total
Revenues	$	179,519	$	28,609		$	(1,177	)	$	206,951
Net revenues		42,568		5,028			—			47,596
Income (loss) from operations		4,229		1,058			(7,844	)		(2,557	)
Other income (expense)		266		(24	)		(1,310	)		(1,068	)
Income (loss) before income tax expense		4,495		1,034			(9,154	)		(3,625	)
Depreciation and amortization		719		182			2,218			3,119
Furniture and equipment, net		11,679		1,634			—			13,313
Goodwill		43,215		19,904			—			63,119
Three months ended December 31, 2014 (in thousands)
Revenues	$	105,948	$	—		$	—		$	105,948
Net revenues		27,592		—			—			27,592
Income from operations		2,486		—			(974	)		1,512
Other income (expense)		61		—			(96	)		(35	)
Income (loss) before income tax expense		2,547		—			(1,070	)		1,477
Depreciation and amortization		1,100		—			—			1,100
Furniture and equipment, net		2,458		—			—			2,458
Goodwill		29,467		—			—			29,467
Six months ended December 31, 2015 (in thousands)	United States		Canada			Corporate/ Eliminations			Total
Revenues	$	370,578	$	57,664		$	(2,639	)	$	425,603
Net revenues		88,452		9,857			—			98,309
Income (loss) from operations		11,550		(631	)		(11,823	)		(904	)
Other income (expense)		371		216			(2,720	)		(2,133	)
Income (loss) before income tax expense		11,921		(415	)		(14,543	)		(3,037	)
Depreciation and amortization		1,458		354			4,412			6,224
Furniture and equipment, net		11,679		1,634			—			13,313
Goodwill		43,215		19,904			—			63,119
Six months ended December 31, 2014 (in thousands)
Revenues	$	204,179	$	—		$	—		$	204,179
Net revenues		53,917		—			—			53,917
Income from operations		5,986		—			(2,066	)		3,920
Other income (expense)		188		—			(187	)		1
Income (loss) before income tax expense		6,174		—			(2,253	)		3,921
Depreciation and amortization		2,379		—			—			2,379
Furniture and equipment, net		2,458		—			—			2,458
Goodwill		29,467		—			—			29,467

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The Company’s revenue generated within the United States consists of any shipment whose origin and destination is within the United States. The following data presents the Company’s revenue generated from shipments to and from the United States and all other countries, which is determined based upon the geographic location of a shipment’s initiation and destination points (in thousands):

	United States				Other Countries				Total
Three months ended December 31:	2015		2014		2015		2014		2015		2014
Revenue	$	118,197	$	62,246	$	88,754	$	43,702	$	206,951	$	105,948
Cost of transportation		95,794		42,747		63,561		35,609		159,355		78,356
Net revenue	$	22,403	$	19,499	$	25,193	$	8,093	$	47,596	$	27,592
	United States				Other Countries				Total
Six months ended December 31:	2015		2014		2015		2014		2015		2014
Revenue	$	243,563	$	123,106	$	182,040	$	81,073	$	425,603	$	204,179
Cost of transportation		189,644		84,946		137,650		65,316		327,294		150,262
Net revenue	$	53,919	$	38,160	$	44,390	$	15,757	$	98,309	$	53,917

NOTE 14 – SUBSEQUENT EVENT

On January 7, 2016, the Company’s board of directors authorized the repurchase of up to 5,000,000 shares of the Company’s common stock through December 31, 2016. Under the stock repurchase program, the Company is authorized to repurchase, from time-to-time, shares of its outstanding common stock in the open market at prevailing market prices or through privately negotiated transactions as permitted by securities laws and other legal requirements. The program does not obligate the Company to repurchase any specific number of shares and may be suspended or terminated at any time without prior notice. The Company has not purchased any shares under this program as of the date of this filing.

On January 22, 2016, the Company’s board of directors declared a cash dividend to holders of the Series A Preferred Shares in the amount of $0.609375 per share. The total declared dividend totaled $511,388 and was paid on February 1, 2016.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS

This report contains “forward-looking statements” within the meaning set forth in United States securities laws and regulations – that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business, financial performance and financial condition, and often contain words such as “anticipate,” “believe,” “estimates,” “expect,” “future,” “intend,” “may,” “plan,” “see,” “seek,” “strategy,” or “will” or the negative thereof or any variation thereon or similar terminology or expressions. These forward-looking statements are not guarantees and are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. We have developed our forward-looking statements based on management’s beliefs and assumptions, which in turn rely upon information available to them at the time such statements were made. Such forward-looking statements reflect our current perspectives on our business, future performance, existing trends and information as of the date of this report. These include, but are not limited to, our beliefs about future revenue and expense levels, growth rates, prospects related to our strategic initiatives and business strategies, express or implied assumptions about, among other things: the continued retention of our relationships with our independent agents; the performance of our historic business, as well as the businesses we have recently acquired, at levels consistent with recent trends and reflective of the synergies we believe will be available to us as a result of such acquisitions; our ability to successfully integrate our recently acquired businesses; our ability to locate suitable acquisition opportunities and secure the financing necessary to complete such acquisitions; the occurrence of no adverse developments effecting domestic and international economic, political or competitive conditions within our industry; transportation costs remaining in-line with recent levels and expected trends; our ability to mitigate, to the best extent possible, our dependence on current management and certain of our larger strategic operating partners; the absence of any adverse laws or governmental regulations affecting the transportation industry in general, and our operations in particular; and such other factors that may be identified from time to time in our Securities and Exchange Commission (“SEC”) filings and other public announcements including those set forth under the caption “Risk Factors” in our Form 10-K for the year ended June 30, 2015. All subsequent written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by the foregoing. Readers are cautioned not to place undue reliance on our forward-looking statements, as they speak only as of the date made. We disclaim any obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.

The following discussion and analysis of our financial condition and result of operations should be read in conjunction with the financial statements and the related notes and other information included elsewhere in this report).

Overview

We operate as a third party logistics company, providing multi-modal transportation and logistics services primarily in the United States and Canada. We service a large and diversified account base consisting of consumer goods, food and beverage, manufacturing and retail customers which we support from an extensive network of approximately 150 operating locations across North America. We provide these services through a multi-brand network comprised of Company-owned offices and locations operated by our independent agents, as well as an integrated international service partner network located in other key markets around the globe. As a third party logistics company, we have approximately 10,000 asset-based transportation companies, including motor carriers, railroads, airlines and ocean lines in our carrier network. We believe shippers value our services because we are able to objectively arrange the most efficient and cost-effective means, type and provider of transportation service without undue influence caused by the ownership of transportation assets. In addition, our minimal investment in physical assets affords us the opportunity for a higher return on invested capital and net cash flows than our asset-based competitors.

Through our operating locations across North America, we offer domestic and international air and ocean freight forwarding services and freight brokerage services including truckload services, less than truckload services; and intermodal services, which is the movement of freight in trailers or containers by combination of truck and rail. Our primary business operations involve arranging the shipment, on behalf of our customers, of materials, products, equipment and other goods that are generally larger than shipments handled by integrated carriers of primarily small parcels, such as FedEx, DHL and UPS, including arranging and monitoring all aspects of material flow activity utilizing advanced information technology systems. We also provide other value-added logistics services, including customs brokerage, order fulfillment, inventory management and warehousing services to complement our core transportation service offering.

We launched our business with the acquisition of Airgroup Corporation (“Airgroup”) in January of 2006. Since that initial platform acquisition in 2006, we have continued to enhance our back-office infrastructure, transportation and accounting systems while executing a strategy to expand operations through a combination of organic growth and the strategic acquisition of non-asset based transportation and logistics providers meeting our acquisition criteria. In April 2015, we acquired Wheels Group Inc. (“Wheels”), our most significant acquisition to date, which significantly expanded our scale and provided geographic and service line expansion through its truck brokerage and intermodal service offering throughout the United States and Canada.

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We expect to grow our business organically and by completing acquisitions of other companies with complementary geographic and logistics service offerings. Our organic growth strategy will continue to focus on strengthening existing and expanding new customer relationships leveraging the benefit of our new truck brokerage and intermodal service offerings, while continuing our efforts on the organic build-out of our network of strategic operating partner locations. In addition to our focus on organic growth, we continue to search for acquisition candidates that bring critical mass from a geographic standpoint, purchasing power and/or complementary service offerings to the current platform. As we continue to grow and scale the business, we remain focused on leveraging our back-office infrastructure to drive productivity improvement across the organization. In addition, as we continue to grow and scale the business we are creating density in our trade lanes which creates opportunities for us to more efficiently source and manage our transportation capacity.

Performance Metrics

Our principal source of income is derived from freight forwarding and freight brokerage services we provide to our customers. As a third party logistics provider, we arrange for the shipment of our customers’ freight from point of origin to point of destination. Generally, we quote our customers a turnkey cost for the movement of their freight. Our price quote will often depend upon the customer’s time-definite needs (first day through fifth day delivery), special handling needs (heavy equipment, delicate items, environmentally sensitive goods, electronic components, etc.), and the means of transport (motor carrier, air, ocean or rail). In turn, we assume the responsibility for arranging and paying for the underlying means of transportation.

Our transportation revenue represents the total dollar value of services we sell to our customers. Our cost of transportation includes direct costs of transportation, including motor carrier, air, ocean and rail services. Our net transportation revenue (gross transportation revenue less the direct cost of transportation) is the primary indicator of our ability to source, add value and resell services provided by third parties, and is considered by management to be a key performance measure. In addition, management believes measuring its operating costs as a function of net transportation revenue provides a useful metric, as our ability to control costs as a function of net transportation revenue directly impacts operating earnings.

Our operating results will be affected as acquisitions occur. Since all acquisitions are made using the purchase method of accounting for business combinations, our financial statements will only include the results of operations and cash flows of acquired companies for periods subsequent to the date of acquisition.

Our GAAP-based net income will be affected by non-cash charges relating to the amortization of customer related intangible assets and other intangible assets attributable to completed acquisitions. Under applicable accounting standards, purchasers are required to allocate the total consideration in a business combination to the identified assets acquired and liabilities assumed based on their fair values at the time of acquisition. The excess of the consideration paid over the fair value of the identifiable net assets acquired is to be allocated to goodwill, which is tested at least annually for impairment. Applicable accounting standards require that we separately account for and value certain identifiable intangible assets based on the unique facts and circumstances of each acquisition. As a result of our acquisition strategy, our net income will include material non-cash charges relating to the amortization of customer related intangible assets and other intangible assets acquired in our acquisitions. Although these charges may increase as we complete more acquisitions, we believe we will be growing the value of our intangible assets (e.g., customer relationships). Thus, we believe that earnings before interest, taxes, depreciation and amortization, or EBITDA, is a useful financial measure for investors because it eliminates the effect of these non-cash costs and provides an important metric for our business.

EBITDA is a non-GAAP measure of income and does not include the effects of preferred stock dividends, interest and taxes, and excludes the “non-cash” effects of depreciation and amortization on long-term assets. Companies have some discretion as to which elements of depreciation and amortization are excluded in the EBITDA calculation. We exclude all depreciation charges related to furniture and equipment, all amortization charges, including amortization of leasehold improvements and other intangible assets. We then further adjust EBITDA to exclude changes in contingent consideration, expenses specifically attributable to acquisitions, severance and lease termination costs, foreign exchange gains and losses, extraordinary items, share-based compensation expense, non-recurring litigation expenses, and other non-cash charges. While management considers EBITDA and adjusted EBITDA useful in analyzing our results, it is not intended to replace any presentation included in our consolidated financial statements.

Our operating results are also subject to seasonal trends when measured on a quarterly basis. The impact of seasonality on our business will depend on numerous factors, including the markets in which we operate, holiday seasons, consumer demand and economic conditions. Since our revenue is largely derived from customers whose shipments are dependent upon consumer demand and just-in-time production schedules, the timing of our revenue is often beyond our control. Factors such as shifting demand for retail goods and/or manufacturing production delays could unexpectedly affect the timing of our revenue. As we increase the scale of our operations, seasonal trends in one area of our business may be offset to an extent by opposite trends in another area. We cannot accurately predict the timing of these factors, nor can we accurately estimate the impact of any particular factor, and thus we can give no assurance any historical seasonal patterns will continue in future periods.

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Results of Operations

Three months ended December 31, 2015 and 2014 (actual and unaudited)

The following table summarizes transportation revenue, cost of transportation and net transportation revenue by geographic operating segments for the three months ended December 31, 2015 and 2014 (in thousands):

	Three months ended December 31, 2015												Three months ended December 31, 2014
	United States			Canada			Corporate/ Eliminations			Total			United States			Canada		Corporate/ Eliminations		Total
Transportation Revenue
Forwarding	$	142,105		$	1,030		$	(120	)	$	143,015		$	105,678		$	—	$	—	$	105,678
Brokerage		35,688			26,769			(1,057	)		61,400			—			—		—		—
		177,793			27,799			(1,177	)		204,415			105,678			—		—		105,678
Cost of transportation
Forwarding		104,229			868			(120	)		104,977			78,356			—		—		78,356
Brokerage		32,722			22,713			(1,057	)		54,378			—			—		—		—
		136,951			23,581			(1,177	)		159,355			78,356			—		—		78,356
Net transportation revenue
Forwarding		37,876			162			—			38,038			27,322			—		—		27,322
Brokerage		2,966			4,056			—			7,022			—			—		—		—
		40,842			4,218			—			45,060			27,322			—		—		27,322
Net transportation margins		23.0	%		15.2	%					22.0	%		25.9	%						25.9	%
Other value added services		1,726			810			—			2,536			270			—		—		270
Net revenues	$	42,568		$	5,028		$	—		$	47,596		$	27,592		$	—	$	—	$	27,592

Forwarding revenue was $143.0 million and $105.7 million, respectively, for the three months ended December 31, 2015 and December 31, 2014. The increase of $37.3 million is attributable to the acquisitions of Wheels, Service by Air, Inc. (“SBA”), Don Cameron & Associates (“DCA”), and Highways and Skyways, Inc. (“Highways”). Brokerage revenue was $61.4 million for the three months ended December 31, 2015 and is entirely attributable to the acquisition of Wheels. Forwarding net transportation revenue was $38.0 million for the three months ended December 31, 2015 compared to $27.3 million for the comparable prior year period. The increase is attributable to the acquisitions listed above. Brokerage net transportation revenue was $7.0 million for the three months ended December 31, 2015, which is entirely attributable to our acquisition of Wheels. Prior to the acquisition we had no brokerage business. Net transportation margins were 22.0% for the three months ended December 31, 2015 compared to 25.9% in the comparable prior year period. The decrease is primarily attributable to increased brokerage business associated with the Wheels acquisition that has significantly lower margins than the forwarding business. Other value added services were $2.5 million for the three months ended December 31, 2015 compared to $0.3 million for the comparable prior year period. This increase is primarily attributable to our acquisition of Wheels.

27

The following table compares condensed consolidated statements of operations data by geographic operating segment for the three months ended December 31, 2015 and 2014 (in thousands):

	Three months ended December 31, 2015												Three months ended December 31, 2014
	United States			Canada			Corporate/ Eliminations			Total			United States			Canada		Corporate/ Eliminations			Total
Net revenues	$	42,568		$	5,028		$	—		$	47,596		$	27,592		$	—	$	—		$	27,592
Operating partner commissions		21,691			—			—			21,691			14,898			—		—			14,898
Personnel costs		9,896			2,611			772			13,279			6,302			—		674			6,976
Selling, general and administrative    expenses		4,278			1,177			1,174			6,629			2,582			—		300			2,882
Depreciation and amortization		719			182			2,218			3,119			1,100			—		—			1,100
Transition and lease termination    costs		1,157			—			—			1,157			395			—		—			395
Impairment of acquired intangible    assets		—			—			3,680			3,680			—			—		—			—
Change in contingent consideration		598			—			—			598			(171	)		—		—			(171	)
Total operating expenses		38,339			3,970			7,844			50,153			25,106			—		974			26,080
Income (loss) from operations		4,229			1,058			(7,844	)		(2,557	)		2,486			—		(974	)		1,512
Other income (expense)		266			(24	)		(1,310	)		(1,068	)		61			—		(96	)		(35	)
Income (loss) before income tax    expense		4,495			1,034			(9,154	)		(3,625	)		2,547			—		(1,070	)		1,477
Income tax benefit (expense)		—			—			1,627			1,627			—			—		(617	)		(617	)
Net income (loss)		4,495			1,034			(7,527	)		(1,998	)		2,547			—		(1,687	)		860
Less: Net income attributable to    non-controlling interest		(19	)		—			—			(19	)		(22	)		—		—			(22	)
Net income (loss) attributable to    Radiant Logistics, Inc.		4,476			1,034			(7,527	)		(2,017	)		2,525			—		(1,687	)		838
Less: Preferred stock dividends		—			—			(511	)		(511	)		—			—		(511	)		(511	)
Net income (loss) attributable to    common stockholders	$	4,476		$	1,034		$	(8,038	)	$	(2,528	)	$	2,525		$	—	$	(2,198	)	$	327

Operating partner commissions increased approximately $6.8 million, or 45.6%, to $21.7 million in the three months ended December 31, 2015 primarily due to our acquisition of SBA, which added approximately 40 strategic operating partner locations.

Personnel costs increased approximately $6.3 million, or 90.3%, to $13.3 million in the three months ended December 31, 2015. The increase is primarily attributable to increased headcount associated with our acquisitions of Wheels, SBA, DCA and Highways, which added personnel costs associated with new Company-owned locations in Toronto, Los Angeles, Chicago, New York, Minneapolis and Cincinnati.

Selling, general and administrative (“SG&A”) costs increased approximately $3.7 million, or 130.0%, to $6.6 million in the three months ended December 31, 2015. The increase is primarily due to the acquisitions of Wheels, SBA, DCA and Highways, which substantially increased facilities, technology and other normal recurring costs associated with added Company-owned locations. Additionally, we had substantial professional services costs associated with our recent acquisitions and litigation.

Depreciation and amortization costs increased approximately $2.0 million, or 183.6%, to $3.1 million in the three months ended December 31, 2015. The increase is primarily due to amortization of intangibles related to the Wheels, SBA, DCA and Highways acquisitions.

28

Transition and lease termination cost increased approximately $0.8 million, or 193.0%, to $1.2 million in the three months ended December 31, 2015. The current period amounts are due to non-recurring personnel costs for SBA that are expected to be eliminated in connection with the winding down of SBA’s historical back office operations. The prior period amount represents non-recurring lease termination costs incurred in connection with the exit and downsizing of the former DBA Distribution Services, Inc. (“DBA”) warehouse and corporate headquarters in New Jersey to a smaller location.

Impairment of acquired intangible assets is attributable to the customer related intangibles associated with On Time Express, Inc. (“OTE”).

Change in contingent consideration represents the change in the fair value of contingent consideration due to former shareholders of acquired operations. There was a loss from change in contingent consideration of $0.6 million in the three months ended December 31, 2015, compared to a gain of $0.2 million in the comparable prior year period. The change was primarily attributable to a reduction in management’s estimates of future payouts with respect to OTE, partially offset by an increase in management’s estimated future payouts for DCA, through the remainder of their respective earn-out periods.

Other expenses increased approximately $1.1 million during the three months ended December 31, 2015 due to higher interest expense on indebtedness used to acquire Wheels, partially offset by foreign exchange gains.

Our decrease in net income was driven principally by increased depreciation, amortization, impairment of acquired intangible assets, and interest expenses compared to the comparable prior year period, partially offset by an income tax benefit.

Our future net income may be impacted by increased amortization of intangibles resulting from acquisitions as well as changes in contingent consideration, all of which may result in gains or losses that are difficult to predict.

The following table provides a reconciliation for the three months ended December 31, 2015 and 2014 of adjusted EBITDA to net income, the most directly comparable GAAP measure in accordance with SEC Regulation G (in thousands):

	Three months ended December 31, 2015												Three months ended December 31, 2014
	United States			Canada			Corporate/ Eliminations			Total			United States			Canada			Corporate/ Eliminations			Total
Net revenues	$	42,568		$	5,028		$	—		$	47,596		$	27,592		$	—		$	—		$	27,592
Net income (loss) attributable to    common stockholders	$	4,476		$	1,034		$	(8,038	)	$	(2,528	)	$	2,525		$	—		$	(2,198	)	$	327
Less: Preferred stock dividends		—			—			511			511			—			—			511			511
Net income (loss) attributable to    Radiant Logistics, Inc.		4,476			1,034			(7,527	)		(2,017	)		2,525			—			(1,687	)		838
Income tax expense (benefit)		—			—			(1,627	)		(1,627	)		—			—			617			617
Depreciation and amortization		719			182			2,218			3,119			1,100			—			—			1,100
Net interest expense		—			—			1,310			1,310			—			—			96			96
EBITDA		5,195			1,216			(5,626	)		785			3,625			—			(974	)		2,651
Share-based compensation		368			—			—			368			159			—			88			247
Change in contingent    consideration		598			—			—			598			(171	)		—			—			(171	)
Acquisition related costs		—			8			470			478			—			—			578			578
Non-recurring legal costs		—			—			412			412			—			—			66			66
Transition and lease termination    costs		49			—			—			49			395			—			—			395
Loss on impairment of acquired    intangible assets		—			—			3,680			3,680			—			—			—			—
Foreign exchange gain		(244	)		26			—			(218	)		(38	)		—			—			(38	)
Adjusted EBITDA		5,966			1,250			(1,064	)		6,152			3,970			—			(242	)		3,728
Transition costs		737			—			—			737			—			—			—			—
Normalized Adjusted EBITDA	$	6,703		$	1,250		$	(1,064	)	$	6,889		$	3,970		$	—		$	(242	)	$	3,728
As a % of Net Revenues		15.7	%		24.9	%					14.5	%		14.4	%		0.0	%					13.5	%

29

Six months ended December 31, 2015 and 2014 (actual and unaudited)

The following table summarizes transportation revenue, cost of transportation and net transportation revenue by geographic operating segments for the six months ended December 31, 2015 and 2014 (in thousands):

	Six months ended December 31, 2015												Six months ended December 31, 2014
	United States			Canada			Corporate/ Eliminations			Total			United States			Canada		Corporate/ Eliminations		Total
Transportation Revenue
Forwarding	$	286,379		$	2,239		$	(180	)	$	288,438		$	203,616		$	—	$	—	$	203,616
Brokerage		81,684			53,898			(2,459	)		133,123			—			—		—		—
		368,063			56,137			(2,639	)		421,561			203,616			—		—		203,616
Cost of transportation
Forwarding		208,923			1,877			(180	)		210,620			150,262			—		—		150,262
Brokerage		73,203			45,930			(2,459	)		116,674			—			—		—		—
		282,126			47,807			(2,639	)		327,294			150,262			—		—		150,262
Net transportation revenue
Forwarding		77,456			362			—			77,818			53,354			—		—		53,354
Brokerage		8,481			7,968			—			16,449			—			—		—		—
		85,937			8,330			—			94,267			53,354			—		—		53,354
Net transportation margins		23.3	%		14.8	%					22.4	%		26.2	%						26.2	%
Other value added services		2,515			1,527			—			4,042			563			—		—		563
Net revenues	$	88,452		$	9,857		$	—		$	98,309		$	53,917		$	—	$	—	$	53,917

Forwarding revenue was $288.4 million and $203.6 million, respectively, for the six months ended December 31, 2015 and December 31, 2014. The increase of $84.8 million is attributable to the acquisitions of Wheels, SBA, DCA, and Highways. Brokerage revenue was $133.1 million for the six months ended December 31, 2015 and is entirely attributable to the acquisition of Wheels. Forwarding net transportation revenue was $77.8 million for the six months ended December 31, 2015 compared to $53.4 million for the comparable prior year period. The increase is due to the acquisitions listed above. Brokerage net transportation revenue was $16.4 million for the six months ended December 31, 2015, which is entirely attributable to our acquisition of Wheels. Net transportation margins were 22.4% for the six months ended December 31, 2015 compared to 26.2% in the comparable prior year period. The decrease is primarily attributable to increased brokerage business associated with the Wheels acquisition that has significantly lower margins than the forwarding business. Other value added services were $4.0 million for the six months ended December 31, 2015 compared to $0.6 million for the comparable prior year period. This increase is primarily attributable to our acquisition of Wheels.

30

The following table compares condensed consolidated statements of operations data by geographic operating segment for the six months ended December 31, 2015 and 2014 (in thousands):

	Six months ended December 31, 2015												Six months ended December 31, 2014
	UnitedStates			Canada			Corporate/ Eliminations			Total			United States			Canada		Corporate/ Eliminations			Total
Net revenues	$	88,452		$	9,857		$	—		$	98,309		$	53,917		$	—	$	—		$	53,917
Operating partner commissions		43,989			—			—			43,989			28,877			—		—			28,877
Personnel costs		20,569			5,545			1,608			27,722			12,334			—		1,203			13,537
Selling, general and administrative    expenses		8,376			2,593			2,123			13,092			4,667			—		863			5,530
Depreciation and amortization		1,458			354			4,412			6,224			2,379			—		—			2,379
Transition and lease termination    costs		2,324			1,996			—			4,320			395			—		—			395
Impairment of acquired intangible    assets		—			—			3,680			3,680			—			—		—			—
Change in contingent consideration		186			—			—			186			(721	)		—		—			(721	)
Total operating expenses		76,902			10,488			11,823			99,213			47,931			—		2,066			49,997
Income (loss) from operations		11,550			(631	)		(11,823	)		(904	)		5,986			—		(2,066	)		3,920
Other income (expense)		371			216			(2,720	)		(2,133	)		188			—		(187	)		1
Income (loss) before income tax    expense		11,921			(415	)		(14,543	)		(3,037	)		6,174			—		(2,253	)		3,921
Income tax benefit (expense)		—			—			1,394			1,394			—			—		(1,518	)		(1,518	)
Net income (loss)		11,921			(415	)		(13,149	)		(1,643	)		6,174			—		(3,771	)		2,403
Less: Net income attributable to    non-controlling interest		(34	)		—			—			(34	)		(44	)		—		—			(44	)
Net income (loss) attributable to    Radiant Logistics, Inc.		11,887			(415	)		(13,149	)		(1,677	)		6,130			—		(3,771	)		2,359
Less: Preferred stock dividends		—			—			(1,023	)		(1,023	)		—			—		(1,022	)		(1,022	)
Net income (loss) attributable to    common stockholders	$	11,887		$	(415	)	$	(14,172	)	$	(2,700	)	$	6,130		$	—	$	(4,793	)	$	1,337

Operating partner commissions increased approximately $15.1 million, or 52.3%, to $44.0 million in the six months ended December 31, 2015 primarily due to our acquisition of SBA, which added approximately 40 strategic operating partner locations.

Personnel costs increased approximately $14.2 million, or 104.8%, to $27.7 million in the six months ended December 31, 2015. The increase is primarily attributable to increased headcount associated with our acquisitions of Wheels, SBA, DCA and Highways, which added personnel costs associated with new Company-owned locations in Toronto, Los Angeles, Chicago, New York, Minneapolis and Cincinnati.

SG&A costs increased approximately $7.6 million, or 136.7%, to $13.1 million in the six months ended December 31, 2015. The increase is primarily due to the acquisitions of Wheels, SBA, DCA and Highways, which substantially increased facilities, technology and other normal recurring costs associated with added Company-owned locations. Additionally, we had substantial professional services costs associated with our recent acquisitions.

Depreciation and amortization costs increased approximately $3.8 million, or 161.6%, to $6.2 million in the six months ended December 31, 2015. The increase is primarily due to amortization of intangibles related to the Wheels, SBA, DCA and Highways acquisitions.

31

Transition and lease termination cost increased approximately $3.9 million, or 993.3%, to $4.3 million in the six months ended December 31, 2015 due to the consolidation effort at the Wheels Toronto location, the exit of the former SBA JFK office, and non-recurring personnel costs for SBA that are expected to be eliminated in connection with the winding down of SBA’s historical back office operations. The prior period amount represents non-recurring lease termination costs incurred in connection with the exit and downsizing of the former DBA warehouse and corporate headquarters in New Jersey to a smaller location.

Impairment of acquired intangible assets is attributable to the customer related intangibles associated with On Time Express, Inc. (“OTE”).

Change in contingent consideration represents the change in the fair value of contingent consideration due to former shareholders of acquired operations. There was a loss from change in contingent consideration of $0.2 million in the six months ended December 31, 2015, compared to a gain of $0.7 million in the comparable prior year period. The change was primarily attributable to a reduction in management’s estimates of future payouts with respect to OTE, offset by an increase in management’s estimated future payouts for DCA through the remainder of their respective earn-out periods.

Other expenses increased approximately $2.1 million during the six months ended December 31, 2015 due to higher interest expense on indebtedness used to acquire Wheels.

Our decrease in net income was driven principally by increased lease termination costs, depreciation, amortization, impairment of acquired intangible assets, and interest expenses compared to the comparable prior year period, partially offset by an income tax benefit.

Our future net income may be impacted by increased amortization of intangibles resulting from acquisitions as well as changes in contingent consideration, all of which may result in gains or losses that are difficult to predict.

The following table provides a reconciliation for the six months ended December 31, 2015 and 2014 of adjusted EBITDA to net income, the most directly comparable GAAP measure in accordance with SEC Regulation G (in thousands):

	Six months ended December 31, 2015												Six months ended December 31, 2014
	United States			Canada			Corporate/ Eliminations			Total			United States			Canada		Corporate/ Eliminations			Total
Net revenues	$	88,452		$	9,857		$	—		$	98,309		$	53,917		$	—	$	—		$	53,917
Net income (loss) attributable to    common stockholders	$	11,887		$	(415	)	$	(14,172	)	$	(2,700	)	$	6,130		$	—	$	(4,793	)	$	1,337
Less: Preferred stock dividends		—			—			1,023			1,023			—			—		1,022			1,022
Net income (loss) attributable to    Radiant Logistics, Inc.		11,887			(415	)		(13,149	)		(1,677	)		6,130			—		(3,771	)		2,359
Income tax expense (benefit)		—			—			(1,394	)		(1,394	)		—			—		1,518			1,518
Depreciation and amortization		1,458			354			4,412			6,224			2,379			—		—			2,379
Net interest expense		—			—			2,721			2,721			—			—		187			187
EBITDA		13,345			(61	)		(7,410	)		5,874			8,509			—		(2,066	)		6,443
Share-based compensation		695			63			—			758			287			—		165			452
Change in contingent    consideration		186			—			—			186			(721	)		—		—			(721	)
Acquisition related costs		—			286			1,191			1,477			—			—		673			673
Non-recurring legal costs		—			—			722			722			—			—		185			185
Transition and lease termination    costs		225			1,882			—			2,107			395			—		—			395
Loss on impairment of acquired    intangible assets		—			—			3,680			3,680			—			—		—			—
Foreign exchange gain		(258	)		(210	)		—			(468	)		(112	)		—		—			(112	)
Adjusted EBITDA		14,193			1,960			(1,817	)		14,336			8,358			—		(1,043	)		7,315
Transition costs		1,377			—			—			1,377			—			—		—			—
Normalized Adjusted EBITDA	$	15,570		$	1,960		$	(1,817	)	$	15,713		$	8,358		$	—	$	(1,043	)	$	7,315
As a % of Net Revenues		17.6	%		19.9	%					16.0	%		15.5	%							13.6	%

32

Supplemental Pro forma Information

Basis of Presentation

The results of operations discussion that appears below has been presented utilizing a combination of historical and, where relevant, pro forma unaudited information to include the effects on our consolidated financial statements of our acquisition of Wheels. The pro forma results are developed to reflect a consolidation of the historical results of operations of the Company and adjusted to include the historical results of Wheels, as if we had acquired them as of July 1, 2014. The pro forma results are also adjusted to reflect a consolidation of the historical results of operations of Wheels and the Company as adjusted to reflect the amortization of acquired intangibles.

The pro forma financial data is not necessarily indicative of results of operations that would have occurred had these acquisitions been consummated at the beginning of the periods presented or which might be attained in the future.

The following table summarizes transportation revenue, cost of transportation and net transportation revenue (in thousands) for the six months ended December 31, 2015 and 2014 (pro forma and unaudited):

	Six Months Ended December 31,
	2015			2014
Revenues	$	425,603		$	377,581
Cost of transportation		327,294			301,779
Net revenues	$	98,309		$	75,802
Net transportation margins		23.1	%		20.1	%

The following table compares certain condensed consolidated statements of operations data (in thousands) for the six months ended December 31, 2015 and 2014 (pro forma and unaudited):

	Six Months Ended December 31,
	2015			2014
Net revenues	$	98,309		$	75,802
Operating partner commissions		43,989			28,877
Personnel costs		27,722			26,481		(a)
Selling, general and administrative expenses		13,092			10,874		(b)
Depreciation and amortization		6,224			5,999		(c)
Lease termination costs		4,320			395
Loss on impairment of acquired intangible assets		3,680			831
Change in contingent consideration		186			(1,646	)
Total operating expenses		99,213			71,811
Income (loss) from operations		(904	)		3,991
Other expense		(2,133	)		(2,223	)	(d)
Income (loss) before income tax expense		(3,037	)		1,768
Income tax benefit (expense)		1,394			(619	)	(e)
Net income (loss)		(1,643	)		1,149
Less: Net income attributable to non-controlling interest		(34	)		(44	)
Net income (loss) attributable to Radiant Logistics, Inc.		(1,677	)		1,105
Less: Preferred stock dividends		(1,023	)		(1,023	)
Net income (loss) attributable to common stockholders	$	(2,700	)	$	82

33

(a) Includes share-based compensation expense of $124 related to the Wheels transaction

(b) Includes transaction expenses of $1,644 incurred by Radiant related to the Wheels transaction

(c) Includes amortization of intangibles expense of $2,806 related to the Wheels transaction

(d) Includes interest expense of $2,402 related to the Wheels transaction

(e) Includes a tax benefit of $1,517 related to the Wheels transaction

The following table provides a reconciliation for the six months ended December 31, 2015 and 2014 (pro forma and unaudited) of adjusted EBITDA to net income, the most directly comparable GAAP measure in accordance with SEC Regulation G (in thousands):

	Six Months Ended December 31,
	2015			2014
Net revenues	$	98,309		$	75,802
Net income (loss) attributable to common stockholders	$	(2,700	)	$	82
Preferred stock dividends		1,023			1,023
Net income (loss) attributable to Radiant Logistics, Inc.		(1,677	)		1,105
Income tax expense (benefit)		(1,394	)		619
Depreciation and amortization		6,224			5,999
Net interest expense		2,721			2,588
EBITDA	$	5,874		$	10,311
Share-based compensation		758			576
Change in contingent consideration		186			(1,646	)
Acquisition related costs		1,477			673
Non-recurring legal costs		722			185
Lease termination costs		2,107			395
Loss on impairment of acquired intangible assets		3,680			831
Foreign exchange loss (gain)		(468	)		—
Adjusted EBITDA		14,336			11,325
Transition costs		1,377			—
Normalized Adjusted EBITDA	$	15,713		$	11,325
As a % of Net Revenues		16.0	%		14.9	%

Liquidity and Capital Resources

Net cash provided by operating activities was $15.7 million for the six months ended December 31, 2015, compared to $4.1 million for the six months ended December 31, 2014. The change was principally driven by our net income (loss) adjusted for amortization, contingent consideration, loss on impairment, transition and lease termination costs, and changes in accounts receivable and accounts payable.

Net cash used for investing activities was $3.7 million for the six months ended December 31, 2015, compared to $4.7 million for the six months ended December 31, 2014. Use of cash for the six months ended December 31, 2015 consisted $2.4 million of purchases of furniture and equipment, $0.8 million related to acquisitions, and $0.7 million of payments to former shareholders of acquired operations, offset by $0.2 million of proceeds from sale of furniture and equipment. Use of cash for the six months ended December 31, 2014 consisted of $3.5 million related to acquisitions and the purchase of $1.2 million in furniture and equipment.

34

Net cash provided by financing activities was $1.1 million for the six months ended December 31, 2015, compared to cash used for financing activities of $0.6 million for the six months ended December 31, 2014. The cash provided by financing activities for the six months ended December 31, 2015 consisted of proceeds from the offering of $38.4 million of common stock and a tax benefit from the exercise of stock options of less than $0.1 million, offset by repayments to our credit facility of $34.7 million, payment of contingent consideration to former shareholders of acquired operations of $1.5 million, payment of preferred stock dividends of $1.0 million, and payment of employee tax withholdings related to net share settlements of stock option exercises of $0.1 million, offset by. Cash used for financing activities for the six months ended December 31, 2014 consisted of preferred dividend payments of $1.0 million, payment of employee tax withholdings related to net share settlements of stock option exercises of $0.4 million, and payment of contingent consideration payments made to former shareholders of acquired operations of $1.2 million, offset by proceeds from our credit facility of $1.1 million and a tax benefit from the exercise of stock options of $0.4 million.

Acquisitions

Our agreements with respect to our prior acquisitions contain future consideration provisions that provide for the prior owners of the acquired entities to receive additional consideration if specified operating objectives and financial results are achieved in future periods. For additional information regarding the acquisitions and potential earn-out payments, see Note 3 to our audited consolidated financial statements contained in our Annual Report on Form 10-K for the year ended June 30, 2015, and Note 3 to our unaudited condensed consolidated financial statements contained elsewhere in this report.

Senior Credit Facility

We have a USD$65.0 million revolving credit facility (the “Senior Credit Facility”) with Bank of America, N.A. (“BofA”) on its own behalf and as agent to the other lenders named therein, currently consisting of the Bank of Montreal (as the initial member of the syndicate under such loan). The Senior Credit Facility matures on August 9, 2018 and is collateralized by a first-priority security interest in all of the assets of the U.S. co-borrowers, a first-priority security interest in all of the accounts receivable and associated assets of the Canadian co-borrowers (the “Canadian A/R Assets”) and a second-priority security interest on the other assets of the Canadian borrowers. Advances under the Senior Credit Facility were used to fund the Wheels acquisition and are available for future acquisitions, certain debt repayment and for other corporate purposes. Borrowings under the Senior Credit Facility accrue interest at a variable rate of interest based upon LIBOR and/or one or more other interest rate indices plus an applicable margin. The Senior Credit Facility provides for advances of up to 85% of our eligible Canadian and domestic accounts receivable, 75% of eligible accrued but unbilled domestic receivables and eligible foreign accounts receivable, all of which are subject to certain sub-limits, reserves and reductions.

The co-borrowers of the Senior Credit Facility include the following: (i) with respect to U.S. obligations under the Senior Credit Facility, Radiant Logistics, Inc., Radiant Global Logistics, Inc., Radiant Transportation Services, Inc., Radiant Logistics Partners LLC, Adcom Express, Inc., Radiant Customs Services, Inc., DBA Distribution Services, Inc., International Freight Systems (of Oregon), Inc., Radiant Off-Shore Holdings LLC, Green Acquisition Company, Inc., On Time Express, Inc., Clipper Exxpress Company, Bluenose Finance LLC, Wheels MSM US, Inc., Service By Air, Inc., Highways and Skyways, Inc., and Radiant Trade Services, Inc.; and (ii) with respect to Canadian obligations under the Senior Credit Facility, Radiant Global Logistics, Ltd., Wheels Group Inc., 1371482 Ontario Inc., Wheels MSM Canada Inc., 2062698 Ontario Inc., Associate Carriers Canada Inc. and Wheels Associate Carriers Inc. As co-borrowers under the Senior Credit Facility, the accounts receivable of the foregoing entities are eligible for inclusion within the overall borrowing base of the Company and all borrowers ae responsible for repayment of the debt associated with applicable advances (U.S. or Canadian) under the Senior Credit Facility. In addition, we and our U.S. subsidiaries guarantee both the U.S. and Canadian obligations under the Senior Credit Facility, while our Canadian subsidiaries guarantee only the Canadian obligations under the Senior Credit Facility.

The terms of the Senior Credit Facility are subject to a financial covenant which may limit the amount otherwise available under such facility. The covenant requires us to maintain a basic fixed charge coverage ratio of at least 1.1 to 1.0 during any period (the “Trigger Period”) in which we are in default under the Senior Credit Facility, if total availability falls below $10 million or if U.S. availability is less than $6 million.

35

Under the terms of the Senior Credit Facility, we are permitted to make additional acquisitions without the consent of the senior lenders only if certain conditions are satisfied. The conditions imposed by the Senior Credit Facility include the following: (i) the absence of an event of default under the Senior Credit Facility, (ii) the acquisition must be consensual; (iii) the company to be acquired must be in the transportation and logistics industry, located in the United States or certain other approved jurisdictions, and have a positive EBITDA for the 12 month period most recently ended prior to such acquisition, (iv) no debt or liens may be incurred, assumed or result from the acquisition, subject to limited exceptions, and (v) after giving effect for the funding of the acquisition, we must have availability under the Senior Credit Facility of at least the greater of 20% of the U.S.-based borrowing base and Canadian-based borrowing base or $12.5 million, and U. S. availability of at least $7.5 million. In the event that we are not able to satisfy the conditions of the Senior Credit Facility in connection with a proposed acquisition, we must either forego the acquisition, obtain the consent of the senior lenders, or retire the Senior Credit Facility. This may limit or slow our ability to achieve the critical mass we may need to achieve our strategic objectives.

As of December 31, 2015, we have gross availability of $50.0 million, net of letter of credit reserves of approximately $0.3 million for approximately $49.7 million in availability under the credit facility to support future acquisitions and our on-going working capital requirements, excluding any availability attributable to accounts receivable of SBA. We expect to structure acquisitions with certain amounts paid at closing, and the balance paid over a number of years in the form of earn-out installments which are payable based upon the future earnings of the acquired businesses payable in cash, stock or some combination thereof. As we continue to execute our acquisition strategy, we will be required to make significant payments in the future if the earn-out installments under our various acquisitions become due. While we believe that a portion of any required cash payments will be generated by the acquired businesses, we may have to secure additional sources of capital to fund the remainder of any cash-based earn-out payments as they become due. This presents us with certain business risks relative to the availability of capacity under our credit facility, the availability and pricing of future fund raising, as well as the potential dilution to our stockholders to the extent the earn-outs are satisfied directly, or indirectly, from the sale of equity.

Senior Secured Integrated Private Debt Fund IV LP Term Loan

On April 2, 2015, Wheels obtained a CAD$29.0 million senior secured Canadian term loan from Integrated Private Debt Fund IV LP (“IPD”) pursuant to a $29,000,000 Credit Facilities Loan Agreement (the “IPD Loan Agreement”). The Company and its U.S. and Canadian subsidiaries are guarantors of the Wheels obligations thereunder. The loan matures on April 1, 2024 and accrues interest at a rate of 6.65% per annum. The loan repayment consists of interest-only payments for the first 12 months followed by blended principal and interest payments for the next eight years. The loan may be prepaid in whole at any time upon providing at least 30 days prior written notice and paying the difference between (i) the present value of the loan interest and the principal payments foregone discounted at the Government of Canada Bond Yield for the term from the date of prepayment to April 1, 2024, and (ii) the face value of the principal amount being prepaid. In connection with the loan, we paid an amount equal to five months of interest payments into a debt service reserve account controlled by IPD.

The loan is collateralized by a (i) first-priority security interest in all of the assets of Wheels except the Canadian A/R Assets, (ii) a second-priority security interest in the Canadian A/R Assets, and (iii) a second-priority security interest on all of our assets.

The terms of the loan are subject to certain financial covenants, which require us to maintain (i) a debt service coverage ratio of at least 1.2 to 1.0 and (ii) a senior debt to EBITDA ratio of at least 3.0 to 1.0. In addition, during any Trigger Period, the Company and its U.S. and Canadian subsidiaries must maintain a fixed charge coverage ratio of at least 1.1 to 1.0.

Under the terms of the IPD Loan Agreement, we are permitted to make additional acquisitions without IPD’s consent only if certain conditions are satisfied, including, among others: (i) the equity interests or property acquired in such acquisition constitute a business reasonably related to our business or the business of Wheels; (ii) no default or event of default shall exist prior to or will be caused as a result of such acquisition; (iii) we or Wheels shall have provided IPD with at least 10 business days prior written notice of such acquisition that must include certain descriptive information and pro forma information regarding the acquisition; (iv) such person whose equity interests or property are being acquired shall have, as of the last day of the most recent fiscal quarter of such person, actual (or pro forma to the extent approved in writing by IPD) positive EBITDA and net income, in each case for the 12 month period ending on such date; (v) the aggregate cash consideration payable at the closing of the acquisition shall not exceed $10,000,000 for any single transaction and $25,000,000 in the aggregate, in any fiscal year or such greater amount approved in writing by IPD; provided, however, that the foregoing limitation shall exclude cash consideration derived from the proceeds of sales of newly issued equity interests of Radiant during the twelve-month period prior to the closing of such acquisition (as described below); (vi) no debt or liens may be incurred, assumed or result from the acquisition, subject to limited exceptions; (vii) the assets subject to the acquisition are free from all liens except those permitted under the IPD Loan Agreement; and (viii) the post-closing U.S. availability under the Senior Credit Facility is at least $7,500,000 on a pro forma basis.

36

Subordinated Secured Alcentra Capital Corporation and Triangle Capital Corporation Term Loan

On April 2, 2015, we obtained a USD$25.0 million subordinated secured term loan from Alcentra Capital Corporation ($10.0 million) and Triangle Capital Corporation ($15.0 million) (collectively, the “Subordinated Lenders”) pursuant to a Loan and Security Agreement (the “Alcentra/Triangle Subordinated Loan Agreement”). The loan matures on April 2, 2021 and accrues interest at a rate of 12% per annum during the first six months of the loan and then at a variable rate, ranging from LIBOR plus 950 basis points to LIBOR plus 1025 basis points (all with a 100 basis points LIBOR floor), depending on our total leverage ratio. Prior to April 2, 2016, the loan may not be prepaid. After this, prior to April 2, 2017, the loan may be prepaid by paying a prepayment premium equal to 3% of the amount prepaid. After April 2, 2017, the loan may be prepaid, in whole or in part, without penalty. We may be required to prepay, at the Subordinated Lenders’ option, the entire amount of the loan (including applicable prepayment premiums) upon the occurrence of certain events, such as an event of default, a change in control, or the completion of a “going private” transaction.

The loan is collateralized by a third-priority security interest in all of our U.S. based assets. The loan is subordinate to the Senior Credit Facility and the loan from IPD, and is senior to all other indebtedness.

The terms of the loan are subject to certain financial covenants. We are required to maintain a fixed charge coverage ratio of at least 1.05 to 1.0. We are also required to initially maintain a maximum adjusted leverage ratio and a maximum total leverage ratio of up to 3.75:1.00 and 4.25:1.00, respectively, with such amounts decreasing by .10 for every year of the loan, such that during the final year of the loan, the maximum adjusted leverage ratio and the maximum total leverage ratio will be 3.25:1.00 and 3.75:1.00, respectively.

Under the Alcentra/Triangle Subordinated Loan Agreement, we are permitted to make additional acquisitions without the consent of the Subordinated Lenders only if certain conditions are satisfied, including, among others: (i) the equity interests or property acquired in such acquisition constitute a business reasonably related to the our business; (ii) no default or event of default shall exist prior to or will be caused as a result of such acquisition; (iii) we shall have provided the Subordinated Lenders with at least 30 business days prior written notice of such acquisition that must include certain descriptive information and pro forma information regarding the acquisition; and (iv) post-closing U.S. availability under the Senior Credit Facility is at least $7,500,000 on a pro forma basis; and (v) the aggregate cash consideration payable at the closing of the acquisition shall not exceed $10,000,000 for any single transaction and $25,000,000 in the aggregate in any fiscal year (of which not more than $10,000,000 in the aggregate in any fiscal year may be payable in connection with acquisitions of persons located or organized within Canada) or such greater amount approved in writing by the Subordinated Lenders; provided, however, that the foregoing limitation shall exclude cash consideration derived from the proceeds of sales of equity interests issued by the borrowers during the 12 month period prior to the closing of such acquisition to the extent that the borrowers elect to issue equity interests. The written consent of the Subordinated Lenders shall be required if, in an acquisition described in the preceding clause, the aggregate cash consideration payable at the closing of such acquisition is equal to or greater than $25,000,000 (or $10,000,000 with respect to any acquisition of a person located or organized within Canada).

For additional information regarding our indebtedness, see Note 6 to our unaudited condensed consolidated financial statements contained elsewhere in this report.

Given our continued focus on the build-out of our network of operating partner locations, we believe that our current working capital and anticipated cash flow from operations are adequate to fund existing operations for the next 12 months. However, continued growth through strategic acquisitions will require additional sources of financing as our existing working capital is not sufficient to finance our operations and an acquisition program. Thus, our ability to finance future acquisitions will be limited by the availability of additional capital. We may, however, finance acquisitions using our common stock as all or some portion of the consideration. In the event that our common stock does not attain or maintain a sufficient market value or potential acquisition candidates are otherwise unwilling to accept our securities as part of the purchase price for the sale of their businesses, we may be required to utilize more of our cash resources, if available, in order to continue our acquisition program. If we do not have sufficient cash resources through either operations or from debt facilities, our growth could be limited unless we are able to obtain such additional capital.

Off Balance Sheet Arrangements

As of December 31, 2015, we did not have any relationships with unconsolidated entities or financial partners, such as entities often referred to as structured finance or special purpose entities, established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. As such, we are not materially exposed to any financing, liquidity, market or credit risk that could arise if we had engaged in such relationships.

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards (“ASU”) Update No. 2014-09, Revenue from Contracts with Customers, to clarify the principles used to recognize revenue for all entities. The guidance is effective for annual and interim periods beginning after December 15, 2017, and early adoption is permitted. We are currently evaluating the impact, if any, that the adoption of this guidance will have on our consolidated financial statements and related disclosures.

37

In April 2015, the FASB issued ASU 2015-03, Imputation of Interest, requiring entities to present debt issuance costs related to a debt liability as a reduction of the carrying amount of that liability. In August 2015, the FASB issued ASU 2015-15 to provide additional guidance related to debt issuance costs related to line-of-credit arrangements. The guidance is effective for annual and interim periods beginning after December 15, 2015, and early adoption is permitted. We are currently evaluating the impact, if any, that the adoption of this guidance will have on our consolidated financial statements and related disclosures.

Item 4A. Controls and Procedures

Disclosure Controls and Procedures

An evaluation of the effectiveness of our “disclosure controls and procedures” (as such term is defined in Rules 13a-15(e) or 15d-15(e) of the Exchange Act as of December 31, 2015, was carried out by our management under the supervision and with the participation of our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”). Based upon that evaluation, our CEO and CFO concluded that, as of December 31, 2015, our disclosure controls and procedures were effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms and (ii) accumulated and communicated to our management, including our CEO and CFO, as appropriate to allow timely decisions regarding disclosure.

There have not been any changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter ended December 31, 2015 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting except as noted below:

On April 2, 2015 and June 8, 2015 we acquired Wheels and SBA, respectively. Refer to Note 3 of the Notes to Consolidated Financial Statements in the Form 10-K dated June 30, 2015 for additional information regarding these acquisitions. Management has excluded these businesses from its evaluation of the effectiveness of our internal control over financial reporting as of December 31, 2015. The revenues attributable to Wheels represented approximately 33% of our consolidated revenues for the six months ended December 31, 2015 and the revenues attributable to SBA represented approximately 15% of our consolidated revenues for the six months ended December 31, 2015.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, the Company and our operating subsidiaries are involved in claims, proceedings and litigation, including the actions set forth in Item 3 of our Annual Report on Form 10-K for the year ended June 30, 2015. Below are some updates to legal proceedings that have been previously disclosed in our Annual Report on Form 10-K for the year ended June 30, 2015.

DBA Distribution Services, Inc. – Bretta Santini Pollara v. Radiant Logistics, Inc., United States District Court, Central District of California, Case No. 12-344 GAF

The trial date with the Court of Appeals has been set for May 2016. Due to the uncertainty associated with the litigation and judicial review process, we remain unable to express an opinion as to the outcome of this matter.

Ingrid Barahoma v. Accountabilities, Inc. d/b/a/ Accountabilities Staffing, Inc., Radiant Global Logistics, Inc. and DBA Distribution Services, Inc. (Ingrid Barahona California Class Action)

Plaintiff recently admitted in a report to the Court that she is unable to prosecute the case because the payroll and personnel records she needs are in the possession of Tri-State and-or Accountabilities, and the case has been stayed as to them pending resolution of their chapter 11 bankruptcy proceedings. In January 2016, the court held a status conference, which has since been continued until May 2016 so the parties can attempt to obtain the necessary documents. The parties are in the process of trying to obtain the records. At this time, the Company is unable to express an opinion as to the likely outcome of the matter.

High Protection Company, a Utah Corporation, Plaintiff, v. Professional Air Transportation, LLC, a Utah Limited Liability Company, d/b/a ADCOM SLC; Radiant Logistics, Inc., a Foreign Corporation; ADCOM World-Wide, an Operating Division of Radiant Logistics, Inc.; Radiant Global Logistics, Inc., a Foreign Corporation, d/b/a Radiant Container Lines; Felipe Lake, an Individual; Rubens Correa, an Individual; and Does 1-100, Defendants, United States District Court for the District of Utah (Central), Civil Docket No. 2:14-cv-00466-TC-BCW (formerly Salt Lake County, Utah, Case No. 140902965)

In compliance with an Amended Scheduling Order, discovery has continued in this action, and expert discovery has been scheduled. The Amended Scheduling Order also includes scheduling for a potential jury trial date in December 2016. Plaintiff and Defendants have filed Motions for Summary Judgment with supporting Memoranda. An Order granting a Motion to Stay Proceedings was granted in December 2015 for purposes of a pending Mediation scheduled to commence in February 2016. Since the proceeding remains in its early stages, we are unable at this time to express an opinion as to the outcome of this matter.

Item 1A. Risk Factors

In addition to the information set forth in this Form 10-Q, you should carefully consider the risk factors discussed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended June 30, 2015.

39

ITEM 6. EXHIBITS

Exhibit No.	Exhibit	Method of Filing
31.1	Certification by Principal Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed herewith
31.2	Certification by Principal Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed herewith
32.1	Certification by the Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002	Filed herewith
101.INS	XBRL Instance	Filed herewith
101.SCH	XBRL Taxonomy Extension Schema	Filed herewith
101.CAL	XBRL Taxonomy Extension Calculation	Filed herewith
101.DEF	XBRL Taxonomy Extension Definition	Filed herewith
101.LAB	XBRL Taxonomy Extension Label	Filed herewith
101.PRE	XBRL Taxonomy Extension Presentation	Filed herewith

40

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	RADIANT LOGISTICS, INC.
Date: February 16, 2016	/s/ Bohn H. Crain
	Bohn H. Crain
	Chief Executive Officer
	(Principal Executive Officer)
Date: February 16, 2016	/s/ Todd E. Macomber
	Todd E. Macomber
	Senior Vice President and Chief Financial Officer
	(Principal Financial Officer)

41

EXHIBIT INDEX

Exhibit No.	Exhibit
31.1	Certification by the Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification by the Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification by the Principal Executive Officer and Principal 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
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation
101.DEF	XBRL Taxonomy Extension Definition
101.LAB	XBRL Taxonomy Extension Label
101.PRE	XBRL Taxonomy Extension Presentation

42

EX-31.1

Exhibit 31.1

Certification

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Bohn H. Crain, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Radiant Logistics, 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 quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly 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. As a certifying officer, I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls 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 my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me 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 my 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 my 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;

(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 that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

(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: February 16, 2016

By:	/s/ Bohn H. Crain
	Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

Certification

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Todd E. Macomber, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Radiant Logistics, 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 quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly 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. As a certifying officer, I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls 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 my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me 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 my 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 my 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;

(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 that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

(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: February 16, 2016

By:	/s/ Todd E. Macomber
	Chief Financial Officer
	(Principal Accounting Officer)

EX-32.1

Exhibit 32.1

Certifications Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

(18 U.S.C. Section 1350)

Pursuant to 18 U.S.C. Section 1350, each of the undersigned officers of Radiant Logistics, Inc. (the “Company”) hereby certifies that, to his knowledge, the Company’s Quarterly Report on Form 10-Q for the period ended December 31, 2015 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: February 16, 2016

By:	/s/ Bohn H. Crain
	Bohn H. Crain
	Chief Executive Officer
	(Principal Executive Officer)
By:	/s/ Todd E. Macomber
	Todd E. Macomber
	Chief Financial Officer
	(Principal Accounting Officer)

XML

Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2015	Feb. 11, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Trading Symbol	RLGT
Entity Registrant Name	RADIANT LOGISTICS, INC
Entity Central Index Key	0001171155
Current Fiscal Year End Date	--06-30
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		48,745,540

XML

Condensed Consolidated Balance Sheets - USD ($)	Dec. 31, 2015	Jun. 30, 2015
Current assets:
Cash and cash equivalents	$ 20,126,312	$ 7,268,144
Accounts receivable, net of allowance of $1,819,512 and $1,551,202, respectively	107,977,722	127,348,546
Employee and other receivables	120,378	110,728
Income tax deposit	4,954,723	4,102,191
Prepaid expenses and other current assets	5,199,816	5,671,872
Deferred tax asset	1,977,433	1,977,433
Total current assets	140,356,384	146,478,914
Furniture and equipment, net	13,312,694	13,175,890
Acquired intangibles, net	76,088,477	82,954,682
Goodwill	63,119,472	63,089,222
Deposits and other assets	2,223,373	3,007,492
Total long-term assets	141,431,322	149,051,396
Total assets	295,100,400	308,706,200
Current liabilities:
Accounts payable and accrued transportation costs	79,819,306	92,025,407
Commissions payable	11,504,009	9,449,047
Other accrued costs	5,384,248	7,732,101
Due to former shareholders of acquired operations		683,593
Current portion of notes payable	1,537,628	543,086
Current portion of contingent consideration	3,029,000	1,872,000
Current portion of transition and lease termination liability	1,509,761	282,849
Other current liabilities	292,226	297,727
Total current liabilities	103,076,178	112,885,810
Notes payable, net of current portion	47,851,343	85,892,515
Contingent consideration, net of current portion	3,726,000	5,741,000
Transition and lease termination liability, net of current portion	857,112	923
Deferred rent liability	931,840	1,143,749
Deferred tax liability	15,502,503	17,544,417
Other long-term liabilities	778,938	1,004,812
Total long-term liabilities	69,647,736	111,327,416
Total liabilities	172,723,914	224,213,226
Stockholders' equity:
Preferred stock, $0.001 par value, 5,000,000 shares authorized; 839,200 shares issued and outstanding, liquidation preference of $20,980,000	839	839
Common stock, $0.001 par value, 100,000,000 shares authorized; 48,743,581 and 42,563,224 shares issued and outstanding, respectively	30,198	24,018
Additional paid-in capital	113,826,750	74,658,960
Deferred compensation	(1,976)	(4,166)
Retained earnings	7,446,336	10,146,282
Accumulated other comprehensive income (loss)	1,026,938	(394,547)
Total Radiant Logistics, Inc. stockholders’ equity	122,329,085	84,431,386
Non-controlling interest	47,401	61,588
Total stockholders’ equity	122,376,486	84,492,974
Total liabilities and stockholders’ equity	$ 295,100,400	$ 308,706,200

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Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2015	Jun. 30, 2015
Statement Of Financial Position [Abstract]
Allowance for accounts receivable	$ 1,819,512	$ 1,551,202
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	839,200	839,200
Preferred stock, shares outstanding	839,200	839,200
Preferred stock, shares liquidation preference	$ 20,980,000	$ 20,980,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	48,743,581	42,563,224
Common stock, shares outstanding	48,743,581	42,563,224

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Consolidated Statements of Operations and Comprehensive Income - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
Revenues	$ 206,951,043	$ 105,948,104	$ 425,603,615	$ 204,179,492
Cost of transportation	159,354,826	78,355,731	327,294,293	150,262,336
Net revenues	47,596,217	27,592,373	98,309,322	53,917,156
Operating partner commissions	21,691,079	14,897,910	43,988,958	28,877,261
Personnel costs	13,279,317	6,976,480	27,722,412	13,536,426
Selling, general and administrative expenses	6,628,468	2,882,218	13,091,902	5,530,284
Depreciation and amortization	3,118,854	1,099,713	6,223,853	2,378,794
Transition and lease termination costs	1,157,420	395,086	4,319,648	395,086
Impairment of acquired intangible assets	3,679,825		3,679,825
Change in contingent consideration	598,233	(170,796)	186,233	(720,796)
Total operating expenses	50,153,196	26,080,611	99,212,831	49,997,055
Income (loss) from operations	(2,556,979)	1,511,762	(903,509)	3,920,101
Other income (expense):
Interest income	7,696	732	14,477	1,657
Interest expense	(1,317,546)	(96,442)	(2,735,475)	(187,901)
Foreign exchange gain	218,246	37,584	468,752	112,082
Other	23,982	23,149	118,502	75,473
Total other income (expense):	(1,067,622)	(34,977)	(2,133,744)	1,311
Income (loss) before income tax expense	(3,624,601)	1,476,785	(3,037,253)	3,921,412
Income tax benefit (expense)	1,627,233	(616,491)	1,393,895	(1,518,417)
Net income (loss)	(1,997,368)	860,294	(1,643,358)	2,402,995
Less: Net income attributable to non-controlling interest	(18,699)	(21,555)	(33,813)	(43,592)
Net income (loss) attributable to Radiant Logistics, Inc.	(2,016,067)	838,739	(1,677,171)	2,359,403
Less: Preferred stock dividends	(511,387)	(511,388)	(1,022,775)	(1,022,776)
Net income (loss) attributable to common stockholders	(2,527,454)	327,351	(2,699,946)	1,336,627
Other comprehensive income (loss):
Foreign currency translation gain	566,888		1,421,485
Comprehensive income (loss)	$ (1,960,566)	$ 327,351	$ (1,278,461)	$ 1,336,627
Net income (loss) per common share - basic and diluted	$ (0.05)	$ 0.01	$ (0.06)	$ 0.04
Weighted average shares outstanding:
Basic shares	48,732,762	34,627,645	48,054,100	34,488,616
Diluted shares	48,732,762	36,184,653	48,054,100	36,005,995

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Condensed Consolidated Statement of Stockholders' Equity - 6 months ended Dec. 31, 2015 - USD ($)	Total	Copper Logistics Incorporated	Preferred Stock	Common Stock	Common Stock Copper Logistics Incorporated	Additional Paid-in Capital	Additional Paid-in Capital Copper Logistics Incorporated	Deferred Compensation	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Non-Controlling Interest
Balance at Jun. 30, 2015	$ 84,492,974		$ 839	$ 24,018		$ 74,658,960		$ (4,166)	$ 10,146,282	$ (394,547)	$ 61,588
Balance, shares at Jun. 30, 2015			839,200	42,563,224
Issuance of common stock	38,430,194	$ 31,250		$ 6,133	$ 7	38,424,061	$ 31,243
Issuance of common stock, shares				6,133,334	7,385
Share-based compensation	756,006					756,006
Amortization of deferred compensation	2,190							2,190
Cashless exercise of stock options	$ (103,773)			$ 40		(103,813)
Cashless exercise of stock options, shares	109,813			32,268
Tax benefit from exercise of stock options	$ 60,293					60,293
Preferred dividends paid	(1,022,775)								(1,022,775)
Distribution to non- controlling interest	(48,000)										(48,000)
Net income (loss)	(1,643,358)								(1,677,171)		33,813
Comprehensive income	1,421,485									1,421,485
Balance at Dec. 31, 2015	$ 122,376,486		$ 839	$ 30,198		$ 113,826,750		$ (1,976)	$ 7,446,336	$ 1,026,938	$ 47,401
Balance, shares at Dec. 31, 2015			839,200	48,728,826

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Condensed Consolidated Statement of Stockholders' Equity (Parenthetical) - Common Stock	6 Months Ended
	Dec. 31, 2015 USD ($) $ / shares
Issuance price per share	$ 6.75
Common stock, offering costs | $	$ 2,969,810
Copper Logistics Incorporated
Issuance price per share	$ 4.23

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Condensed Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES
Net income (loss)	$ (1,643,358)	$ 2,402,995
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES
share-based compensation expense	758,196	451,568
amortization of intangibles	4,412,380	2,111,745
depreciation and leasehold amortization	1,811,473	267,049
deferred income tax benefit	(2,306,830)	(239,959)
amortization of loan fees	200,982	30,590
Change in contingent consideration	186,233	(720,796)
loss on impairment of acquired intangible assets	3,679,825
transition and lease termination costs	2,942,009	395,086
loss on disposal of fixed assets	111,398
change in (recovery of) provision for doubtful accounts	268,310	(142,343)
CHANGE IN OPERATING ASSETS AND LIABILITIES:
accounts receivable	17,484,649	1,793,289
employee and other receivables	(8,316)	(53,961)
income tax deposit	(775,964)	(1,085,303)
prepaid expenses, deposits and other assets	704,380	(2,506,431)
accounts payable and accrued transportation costs	(11,611,248)	938,875
commissions payable	2,054,962	1,046,568
other accrued costs	(1,559,942)	(74,535)
other liabilities	(137,100)	13,662
deferred rent liability	(206,381)	9,184
lease termination liability	(682,443)	(504,494)
Net cash provided by operating activities	15,683,215	4,132,789
CASH FLOWS USED FOR INVESTING ACTIVITIES:
Acquisitions during the fiscal year, net of cash acquired	(800,000)	(3,506,250)
Purchase of furniture and equipment	(2,395,899)	(1,226,880)
Proceeds from sale of furniture and equipment	152,353
Payments to former shareholders of acquired operations	(683,593)
Net cash used for investing activities	(3,727,139)	(4,733,130)
CASH FLOWS PROVIDED BY (USED FOR) FINANCING ACTIVITIES:
Proceeds from (repayments to) credit facility, net of credit fees	(34,706,116)	1,085,941
Proceeds from notes payable		547,730
Repayment of notes payable	(84,879)
Proceeds from stock offering, net of offering costs	38,430,194
Payments of contingent consideration	(1,469,233)	(1,205,042)
Payment of preferred stock dividends	(1,022,775)	(1,022,796)
Distributions to non-controlling interest	(48,000)	(18,000)
Payment of employee tax withholdings related to cashless stock option exercises	(103,773)	(388,206)
Tax benefit from exercise of stock options	60,293	438,078
Net cash provided by (used for) financing activities	1,055,711	(562,295)
Effect of exchange rate changes on cash and cash equivalents	(153,619)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	12,858,168	(1,162,636)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	7,268,144	2,880,205
CASH AND CASH EQUIVALENTS, END OF PERIOD	20,126,312	1,717,569
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Income taxes paid	2,063,857	2,416,933
Interest paid	$ 2,621,794	$ 153,936

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Supplemental Disclosure of Non-cash Investing and Financing Activities - USD ($)	1 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Nov. 30, 2014
On Time Express, Inc.
Issuance of common stock			$ 201,162
On Time Express, Inc. | Common Stock
Issuance of common stock, shares			52,452
Issuance price per share			$ 3.84
Issuance of common stock			$ 52
On Time Express, Inc. | Additional Paid-in Capital
Issuance of common stock			$ 201,110
DCA
Issuance of common stock		$ 168,750
DCA | Common Stock
Issuance of common stock, shares		43,221
Issuance price per share		$ 3.90
Issuance of common stock		$ 43
DCA | Additional Paid-in Capital
Issuance of common stock		$ 168,707
Copper Logistics Incorporated
Issuance of common stock	$ 31,250
Copper Logistics Incorporated | Common Stock
Issuance of common stock, shares	7,385
Issuance price per share	$ 4.23
Issuance of common stock	$ 7
Copper Logistics Incorporated | Additional Paid-in Capital
Issuance of common stock	$ 31,243

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The Company and Basis of Presentation

6 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

The Company and Basis of Presentation

NOTE 1 – THE COMPANY AND BASIS OF PRESENTATION

The Company

Radiant Logistics, Inc. (the “Company”) operates as a third party logistics company, providing multi-modal transportation and logistics services primarily in the United States and Canada. The Company services a large and diversified account base consisting of consumer goods, food and beverage, manufacturing and retail customers which it supports from an extensive network of approximately 150 operating locations across North America. The Company provides these services through a multi-brand network comprised of Company-owned offices and locations operated by its strategic operating partners, as well as an integrated international service partner network located in other key markets around the globe. As a third party logistics company, the Company has approximately 10,000 asset-based transportation companies, including motor carriers, railroads, airlines and ocean lines, in its carrier network. The Company believes shippers value its services because it is able to objectively arrange the most efficient and cost-effective means, type and provider of transportation service without undue influence caused by the ownership of transportation assets. In addition, the Company’s minimal investment in physical assets affords it the opportunity for a higher return on invested capital and net cash flows than the Company’s asset-based competitors.

Through its operating locations across North America, the Company offers domestic and international air and ocean freight forwarding services and freight brokerage services including truckload services, less than truckload services and intermodal services, which is the movement of freight in trailers or containers by combination of truck and rail. The Company’s primary business operations involve arranging the shipment, on behalf of its customers, of materials, products, equipment and other goods that are generally larger than shipments handled by integrated carriers of primarily small parcels, such as FedEx, DHL and UPS, including arranging and monitoring all aspects of material flow activity utilizing advanced information technology systems. The Company also provides other value-added logistics services, including customs brokerage, order fulfillment, inventory management and warehousing services to complement its core transportation service offering.

The Company expects to grow its business organically and by completing acquisitions of other companies with complementary geographic and logistics service offerings. The Company’s organic growth strategy will continue to focus on strengthening existing and expanding new customer relationships leveraging the benefit of the Company’s new truck brokerage and intermodal service offerings, while continuing its efforts on the organic build-out of the Company’s network of strategic operating partner locations. In addition, as the Company continues to grow and scale the business, the Company is creating density in its trade lanes which creates opportunities for the Company to more efficiently source and manage our transportation capacity.

In addition to its focus on organic growth, it will continue to search for acquisition candidates that bring critical mass from a geographic standpoint, purchasing power and/or complementary service offerings to the current platform. As the Company continues to grow and scale the business, it remains focused on leveraging its back-office infrastructure to drive productivity improvement across the organization.

Interim Disclosure

The condensed consolidated financial statements included herein have been prepared, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations. The Company’s management believes that the disclosures are adequate to make the information presented not misleading. These condensed financial statements should be read in conjunction with the financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended June 30, 2015.

The interim period information included in this Quarterly Report on Form 10-Q reflects all adjustments, consisting of normal recurring adjustments, that are, in the opinion of the Company’s management, necessary for a fair statement of the results of the respective interim periods. Results of operations for interim periods are not necessarily indicative of results to be expected for an entire year.

Basis of Presentation

The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries as well as a single variable interest entity, Radiant Logistics Partners, LLC (“RLP”), which is 40% owned by Radiant Global Logistics, Inc. (“RGL”), and 60% owned by Radiant Capital Partners, LLC (“RCP”, see Note 8), an affiliate of Bohn H. Crain, the Company’s Chief Executive Officer, whose accounts are included in the condensed consolidated financial statements. All significant intercompany balances and transactions have been eliminated.

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Summary of Significant Accounting Policies

6 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a) Use of Estimates

The preparation of financial statements and related disclosures in accordance with accounting principles generally accepted in the United States (“GAAP”) 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 revenue and expenses during the reporting period. Such estimates include revenue recognition, accruals for the cost of purchased transportation, the fair value of acquired assets and liabilities, changes in contingent consideration, accounting for the issuance of shares and share-based compensation, the assessment of the recoverability of long-lived assets and goodwill, and the establishment of an allowance for doubtful accounts. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the period that they are determined to be necessary. Actual results could differ from those estimates.

b) Fair Value Measurements

In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs utilize observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability.

c) Fair Value of Financial Instruments

The carrying values of the Company’s receivables, accounts payable and accrued transportation costs, commissions payable, other accrued costs, and the income tax deposit approximate the fair values due to the relatively short maturities of these instruments. The carrying value of the Company’s credit facility and other long-term liabilities would not differ significantly from fair value (based on Level 2 inputs) if recalculated based on current interest rates. Contingent consideration attributable to the Company’s acquisitions are reported at fair value using Level 3 inputs.

d) Cash and Cash Equivalents

For purposes of the statements of cash flows, cash equivalents include all highly liquid investments with original maturities of three months or less that are not securing any corporate obligations. Cash balances may at times exceed federally insured limits. Checks issued by the Company that have not yet been presented to the bank for payment are reported as accounts payable and commissions payable in the accompanying consolidated balance sheets. Accounts payable and commissions payable includes outstanding payments which had not yet been presented to the bank for payment in the amounts of $7,344,905 and $3,137,103 as of December 31, 2015 and June 30, 2015, respectively.

e) Concentrations

The Company maintains its cash in bank deposit accounts that, at times, may exceed federally-insured limits. The Company has not experienced any losses in such accounts.

f) Accounts Receivable

The Company’s receivables are recorded when billed and represent claims against third parties that will be settled in cash. The carrying value of the Company’s receivables, net of the allowance for doubtful accounts, represents their estimated net realizable value. The Company evaluates the collectability of accounts receivable on a customer-by-customer basis. The Company records a reserve for bad debts against amounts due to reduce the net recognized receivable to an amount the Company believes will be reasonably collected. The reserve is a discretionary amount determined from the analysis of the aging of the accounts receivables, historical experience and knowledge of specific customers.

The Company derives a substantial portion of its revenue through independently-owned strategic operating partner locations operating under the various Company brands. Each individual strategic operating partner is responsible for some or all of the bad debt expense related to the underlying customers being serviced by the office. To facilitate this arrangement, certain strategic operating partners are required to maintain a security deposit with the Company that is recognized as a liability in the Company’s financial statements. The Company charges each individual strategic operating partner’s bad debt reserve account for any accounts receivable aged beyond 90 days. However, the bad debt reserve account may carry a deficit balance when amounts charged to this reserve exceed amounts otherwise available in the bad debt reserve account. In these circumstances, deficit bad debt reserve accounts, as well as other deficit balances owed to us by our strategic operating partners, are recognized as a receivable in the Company’s financial statements. Other strategic operating partners are not responsible to establish a bad debt reserve, however, they are still responsible for deficits and their strategic operating partner agreements provide that the Company may withhold all or a portion of future commission checks payable to the individual operating partner in satisfaction of any deficit balance. Currently, a number of the Company’s operating partners have a deficit balance in their bad debt reserve account. The Company expects to replenish these funds through the future business operations of these operating partners. However, to the extent any of these operating partners were to cease operations or otherwise be unable to replenish these deficit accounts, the Company would be at risk of loss for any such amount.

g) Furniture and Equipment

Technology (computer software, hardware, and communications), vehicles, furniture, and equipment are stated at cost, less accumulated depreciation over the estimated useful lives of the respective assets. Depreciation is computed using three to fifteen year lives for vehicles, communication, office, furniture, and computer equipment using the straight line method of depreciation. Computer software is depreciated over a three year life using the straight line method of depreciation. For leasehold improvements, the cost is depreciated over the shorter of the lease term or useful life on a straight line basis. Upon retirement or other disposition of these assets, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss, if any, is reflected in other income or expense. Expenditures for maintenance, repairs and renewals of minor items are charged to expense as incurred. Major renewals and improvements are capitalized.

h) Goodwill

Goodwill represents the excess of purchase price over the value assigned to the net tangible and identifiable intangible assets of a business acquired. The Company typically performs its annual goodwill impairment test effective as of April 1 of each year, unless events or circumstances indicate impairment may have occurred before that time. The Company assesses qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. After assessing qualitative factors, the Company determined that no further testing was necessary. If further testing was necessary, the Company would have performed a two-step impairment test for goodwill. The first step requires the Company to determine the fair value of each reporting unit, and compare the fair value to the reporting unit’s carrying amount. To the extent a reporting unit’s carrying amount exceeds its fair value, an indication exists that the reporting unit’s goodwill may be impaired and the Company must perform a second more detailed impairment assessment. The second impairment assessment involves allocating the reporting unit’s fair value to all of its recognized and unrecognized assets and liabilities in order to determine the implied fair value of the reporting unit’s goodwill as of the assessment date. The implied fair value of the reporting unit’s goodwill is then compared to the carrying amount of goodwill to quantify an impairment charge as of the assessment date. As of December 31, 2015, management believes there are no indications of impairment.

i) Long-Lived Assets

Acquired intangibles consist of customer related intangibles, trade names and trademarks, and non-compete agreements arising from the Company’s acquisitions. Customer related intangibles are amortized using the straight-line method over a period of up to 10 years, trademarks and trade names are amortized using the straight line method over 15 years, and non-compete agreements are amortized using the straight line method over the term of the underlying agreements.

The Company reviews long-lived assets to be held-and-used for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable. If the sum of the undiscounted expected future cash flows over the remaining useful life of a long-lived asset is less than its carrying amount, the asset is considered to be impaired. Impairment losses are measured as the amount by which the carrying amount of the asset exceeds the fair value of the asset. When fair values are not available, the Company estimates fair value using the expected future cash flows discounted at a rate commensurate with the risks associated with the recovery of the asset. Assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell. As of December 31, 2015, the Company concluded it had a triggering event requiring assessment of customer related intangibles associated with the On Time Express, Inc. (“OTE”) acquisition due to a loss of customers. As a result, the Company reviewed the customer related intangibles and recorded an impairment loss of $3,679,825. The impairment was measured using future discounted cash flows using Level 3 inputs in the fair value hierarchy.

j) Business Combinations

The Company accounts for business combinations using the purchase method of accounting and allocates the purchase price to the tangible and intangible assets acquired and the liabilities assumed based upon their estimated fair values at the acquisition date. The difference between the purchase price and the fair value of the net assets acquired is recorded as goodwill. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, the estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded in the consolidated statements of income.

The fair values of intangible assets acquired are estimated using a discounted cash flow approach with Level 3 inputs. Under this method, an intangible asset’s fair value is equal to the present value of the incremental after-tax cash flows (excess earnings) attributable solely to the intangible asset over its remaining useful life. To calculate fair value, the Company uses risk-adjusted cash flows discounted at rates considered appropriate given the inherent risks associated with each type of asset. The Company believes the level and timing of cash flows appropriately reflects market participant assumptions.

The Company determines the acquisition date fair value of the contingent consideration payable based on the likelihood of paying the contingent consideration as part of the consideration transferred. The fair value is estimated using projected future operating results and the corresponding future earn-out payments that can be earned upon the achievement of specified operating objectives and financial results by our acquired companies using Level 3 inputs and the amounts are then discounted to present value. These liabilities are measured quarterly at fair value, and any change in the contingent liability is included in the consolidated statements of income.

k) Commitments

The Company has operating lease commitments for equipment rentals, office space, and warehouse space under non-cancelable operating leases expiring at various dates through May 2021. Rent expense is recognized straight line over the term of the lease. Minimum future lease payments (excluding the lease payments included in the lease termination liability) under these non-cancelable operating leases for the next five fiscal years ending June 30 and thereafter are as follows:

2016 (remaining portion)	$	2,797,523
2017		4,953,643
2018		3,384,768
2019		2,640,941
2020		1,666,244
Thereafter		975,485
Total minimum lease payments	$	16,418,604

Rent expense amounted to $1,402,522 and $2,878,909 for the three and six months ended December 31, 2015, respectively, and $451,662 and $975,278 for the three and six months ended December 31, 2014.

l) Lease Termination and Transition Costs

Lease termination costs consist of expenses related to future rent payments for which we no longer intend to receive any economic benefit. A liability is recorded when we cease to use leased space. Lease termination costs are calculated as the present value of lease payments, net of expected sublease income, and the loss on disposition of assets. Transition costs consist of nonrecurring personnel costs that will be eliminated in connection with the winding-down of the historical back-office of SBA and other operating locations     as well as the periodic expense of retention bonuses, estimated to be $735,000, which is being expensed over the requisite service period.

The transition and lease termination liability consists of the following:

	Lease Termination Costs			Severance Costs			Non-recurring Personnel Costs			Total
Balance as of June 30, 2015		255,272			28,500			—			283,772
Lease termination and transition costs		2,107,343			834,666			1,377,639			4,319,648
Payments and other		(744,779	)		(114,129	)		(1,377,639	)		(2,236,547	)
Balance as of December 31, 2015	$	1,617,836		$	749,037		$	—		$	2,366,873

m) 401(k) Savings Plans

The Company has employee savings plans under which the Company provides matching contributions. The Company’s contributions under the plans were $152,877 and $299,409 for the three and six ended December 31, 2015, respectively, and $119,576 and $223,097 for the three and six months ended December 31, 2014.  

n) Income Taxes

Deferred income taxes are reported using the asset and liability method. Deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

The Company reports a liability for unrecognized tax benefits resulting from uncertain income tax positions taken or expected to be taken in an income tax return. Estimated interest and penalties, if any, are recorded as a component of interest expense or other expense, respectively.

o) Revenue Recognition and Purchased Transportation Costs

The Company is the primary obligor responsible for providing the service desired by the customer and is responsible for fulfillment, including the acceptability of the service(s) ordered or purchased by the customer. At the Company’s sole discretion, it sets the prices charged to its customers, and is not required to obtain approval or consent from any other party in establishing its prices. The Company has multiple suppliers for the services it sells to its customers, and has the absolute and complete discretion and right to select the supplier that will provide the product(s) or service(s) ordered by a customer, including changing the supplier on a shipment-by-shipment basis. In most cases, the Company determines the nature, type, characteristics, and specifications of the service(s) ordered by the customer. The Company also assumes credit risk for the amount billed to the customer.

As a non-asset based carrier, the Company generally does not own transportation assets. The Company generates the major portion of its freight forwarding revenues by purchasing transportation services from direct (asset-based) carriers and reselling those services to its customers. Based upon the terms in the contract of carriage, revenues related to shipments where the Company issues a House Airway Bill or a House Ocean Bill of Lading are recognized at the time the freight is tendered to the direct carrier at origin net of duties and taxes. Costs related to the shipments are also recognized at this same time based upon anticipated margins, contractual arrangements with direct carriers, and other known factors. The estimates are routinely monitored and compared to actual invoiced costs. The estimates are adjusted as deemed necessary by the Company to reflect differences between the original accruals and actual costs of purchased transportation.

This method generally results in recognition of revenues and purchased transportation costs earlier than the preferred methods under GAAP which does not recognize revenue until a proof of delivery is received or which recognizes revenue as progress on the transit is made. The Company’s method of revenue and cost recognition does not result in a material difference from amounts that would be reported under such other methods.

All other revenue, including revenue from other value-added services including brokerage services, warehousing and fulfillment services, is recognized upon completion of the service.

p) Share-Based Compensation

The Company has issued restricted stock awards and stock options to certain directors, officers and employees. The Company accounts for share-based compensation under the fair value recognition provisions such that compensation cost is measured at the grant date based on the value of the award and is expensed ratably over the vesting period. Determining the fair value of share-based awards at the grant date requires judgment, including estimating the percentage of awards that will be forfeited, stock volatility, the expected life of the award, and other inputs. If actual forfeitures differ significantly from the estimates, share-based compensation expense and the Company’s results of operations could be materially impacted. The Company issues new shares of common stock to satisfy exercises and vesting of awards granted under our stock plan.

The Company recorded share-based compensation expense of $368,097 and $758,196 for the three and six months ended December 31, 2015, respectively, and $246,839 and $451,568 for the three and six months ended December 31, 2014.

q) Basic and Diluted Income Per Share

Basic income per share is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding. Diluted income per share is computed similar to basic income per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares, such as stock awards and stock options, had been issued and if the additional common shares were dilutive. Net income attributable to common stockholders is calculated after earned preferred stock dividends, whether or not declared.

For the three months ended December 31, 2015, the weighted average outstanding number of potentially dilutive common shares totaled 48,732,762 shares of common stock. Unvested restricted stock awards and options to purchase 4,519,086 shares of common stock were excluded from the diluted income per share for the three months ended December 31, 2015 as there was a net loss in the period and their effect would have been antidilutive. For the three months ended December 31, 2014, the weighted average outstanding number of potentially dilutive common shares totaled 36,184,653 shares of common stock, including unvested restricted stock awards and options to purchase 5,356,821 shares of common stock as of December 31, 2014, of which 946,536 were excluded as their effect would have been antidilutive.

For the six months ended December 31, 2015, the weighted average outstanding number of potentially dilutive common shares totaled 48,054,100 shares of common stock. Unvested restricted stock awards and options to purchase 4,519,086 shares of common stock were excluded from the diluted income per share for the six months ended December 31, 2015, as there was a net loss in the period and their effect would have been antidilutive. For the six months ended December 31, 2014, the weighted average outstanding number of potentially dilutive common shares totaled 36,005,995 shares of common stock, including unvested restricted stock awards and options to purchase 5,356,821 shares of common stock as of December 31, 2014, of which 980,627 were excluded as their effect would have been antidilutive.

The following table reconciles the numerator and denominator of the basic and diluted per share computations for earnings per share as follows:

	Three months ended December 31,				Six months ended December 31,
	2015		2014		2015		2014
Weighted average basic shares outstanding		48,732,762		34,627,645		48,054,100		34,488,616
Dilutive effect of share-based awards		—		1,557,008		—		1,517,379
Weighted average dilutive shares outstanding		48,732,762		36,184,653		48,054,100		36,005,995

r) Foreign Currency Translation

For the Company’s significant foreign subsidiaries that prepare financial statements in currencies other than U.S. dollars, the local currency is the functional currency. All assets and liabilities are translated at period-end exchange rates and all income statement amounts are translated at the weighted average rates for the period. Translation adjustments are recorded in accumulated other comprehensive (loss) income. Gains and losses on transactions of monetary items are recognized in the consolidated statements of operations.

s) Reclassifications

Certain amounts for prior periods have been reclassified in the Company’s consolidated financial statements to conform to the classification used in fiscal year 2016.

t) Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, to clarify the principles used to recognize revenue for all entities. The guidance is effective for annual and interim periods beginning after December 15, 2017, and early adoption is permitted. The Company is currently evaluating the impact, if any, that the adoption of this guidance will have on the Company’s consolidated financial statements and related disclosures.

In April 2015, the FASB issued ASU 2015-03, Imputation of Interest, requiring entities to present debt issuance costs related to a debt liability as a reduction of the carrying amount of that liability. In August 2015, the FASB issued ASU 2015-15 to provide additional guidance related to debt issuance costs related to line-of-credit arrangements. The guidance is effective for annual and interim periods beginning after December 15, 2015, and early adoption is permitted. The Company is currently evaluating the impact, if any, that the adoption of this guidance will have on the Company’s consolidated financial statements and related disclosures.

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Business Acquisitions

6 Months Ended

Dec. 31, 2015

Business Combinations [Abstract]

Business Acquisitions

NOTE 3 – BUSINESS ACQUISITIONS

Fiscal Year 2016 Acquisition

Copper Logistics, Incorporated

On November 20, 2015, the Company acquired the operations and assets of Copper Logistics, Incorporated (“Copper”), a Minneapolis, Minnesota based company that provides a full range of domestic and international transportation and logistics services across North America. The Company has structured the transaction similar to previous acquisitions, with a portion of the expected purchase price payable in subsequent periods based on future performance of the acquired operation.

Fiscal Year 2015 Acquisitions

Wheels Group, Inc.

On April 2, 2015, the Company acquired the outstanding stock of Wheels Group Inc. (“Wheels”). Under an Arrangement Agreement (the “Arrangement”), the Company purchased Wheels for approximately $26.9 million in cash and 6,900,000 shares of common stock. The Company was also responsible for a portion of Wheels’ transaction costs, in addition to its own costs. Wheels, founded in 1988, provides truck brokerage and intermodal services throughout the United States and Canada along with value added warehouse and distribution service offerings in support of U.S. shippers looking to access the Canadian markets. Wheels is one of the largest third party logistics providers in Canada. Wheels, now formally amalgamated into Wheels International, Inc., provides these services primarily to the food and beverage, consumer packaged goods, frozen foods and refrigerated product, and building products industries. The goodwill recognized is attributable to a larger geographic footprint and an increased service line expansion and is not deductible for tax purposes. The results of operations for Wheels are included in the Company’s financial statements as of the date of purchase.

Service by Air, Inc.

On June 8, 2015, the Company acquired the outstanding stock of Service by Air, Inc. (“SBA”), a privately-held New York corporation founded in 1976. SBA is a domestic and international freight forwarder serving manufacturers, distributors and retailers through a combination of three company-owned operating locations and forty independent operating partners across North America. The base purchase price was approximately $12.25 million, consisting of $11.4 million paid in cash at closing, and $0.85 million payable net of working capital and other holdbacks. The goodwill recognized is attributable primarily to the expected cost synergies associated with eliminating redundancies and migrating back-office operations of SBA to the Company and is not deductible for tax purposes. The results of operations for SBA are included in the Company’s financial statements as of the date of purchase.

Other acquisitions

On September 1, 2014, through a wholly-owned subsidiary, the Company acquired the assets and operations of Trans-Net, Inc. (“TNI”), a privately-held company based in Issaquah, Washington. TNI has extensive experience providing integrated project logistics solutions in key Russian oil, gas, mining and infrastructure development markets. On December 15, 2014, through a wholly-owned subsidiary, the Company acquired the assets and operations of Don Cameron & Associates, Inc. (“DCA”), a privately-held company based in Minneapolis, Minnesota. DCA has extensive experience providing a full range of domestic and international transportation and logistics services across North America to the med-tech, advertising/marketing, pharmaceutical, and trade show industries. Effective as of June 1, 2015, through a wholly-owned subsidiary, the company acquired the stock of Highways and Skyways, Inc. (“Highways”), a privately-held company based near Cincinnati, Ohio. Highways services a full range of domestic and international transportation and logistics services to manufacturing, apparel, paper products, medical devices, consumer products and technology industries. Each of the TNI, DCA and Highways acquisitions include earn-out payments that are payable upon achieving certain earnings up to a maximum contingent consideration of $6.5 million, although there are no maximums on certain of the earn-out payments.

Each of the TNI, DCA, Highways, and Copper acquisitions were financed with proceeds from the Company’s Credit Facility (as defined in Note 6), and the transactions were structured using cash, stock, and earn-out payments. The goodwill recorded is expected to be deductible for income tax purposes over a period of 15 years. The consideration paid, purchase price, and pro forma results of operations have not been presented because the effect of these acquisitions was not material to the condensed consolidated financial statements.

The results of operations for the businesses acquired are included in our financial statements as of the date of purchase. The preliminary fair value estimates for the assets acquired and liabilities assumed are based upon preliminary calculations and valuations and our estimates and assumptions are subject to change as we obtain additional information for our estimates during the respective measurement periods (up to one year from the acquisition date). The primary areas of the preliminary estimates for Wheels, SBA, Highways and Copper not yet finalized relates to certain tangible assets and liabilities acquired, and identifiable intangible assets.

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Furniture and Equipment

6 Months Ended

Dec. 31, 2015

Property Plant And Equipment [Abstract]

Furniture and Equipment

NOTE 4 – FURNITURE AND EQUIPMENT

	December 31,			June 30,
	2015			2015
Vehicles	$	5,030,898		$	5,384,161
Communication equipment		179,817			111,790
Office and warehouse equipment		490,532			471,915
Furniture and fixtures		598,126			585,820
Computer equipment		1,613,426			1,364,648
Computer Software		8,807,964			7,209,965
Leasehold improvements		1,498,551			1,324,437
		18,219,314			16,452,736
Less: Accumulated depreciation and amortization		(4,906,620	)		(3,276,846	)
	$	13,312,694		$	13,175,890

Depreciation and amortization expense related to furniture and equipment was $901,025 and $1,811,473 for the three and six months ended December 31, 2015, respectively, and $139,451 and $267,049 for the three and six months ended December 31, 2014, respectively.

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Acquired Intangible Assets

6 Months Ended

Dec. 31, 2015

Goodwill And Intangible Assets Disclosure [Abstract]

Acquired Intangible Assets

NOTE 5 – ACQUIRED INTANGIBLE ASSETS

The table below reflects acquired intangible assets related to all acquisitions:

	December 31,			June 30,			Weighted-Average
	2015			2015			Life
Customer related	$	85,823,815		$	88,287,640		8.6 years
Trade names and trademarks		14,069,000			14,069,000		14.3 years
Covenants not to compete		740,000			730,000		2.1 years
		100,632,815			103,086,640
Less: Accumulated amortization		(24,544,338	)		(20,131,958	)
	$	76,088,477		$	82,954,682

Amortization expense amounted to $2,217,829 and $4,412,380 for the three and six months ended December 31, 2015, respectively, and $960,262 and $2,111,745 for the three and six months ended December 31, 2014, respectively. Future amortization expense for the fiscal years ending June 30 are as follows:

2016 (remaining portion)	$	4,147,962
2017		8,266,924
2018		8,232,257
2019		8,200,924
2020		8,088,741
Thereafter		39,151,669
	$	76,088,477

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Notes Payable and Other Long-Term Debt

6 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Notes Payable and Other Long-Term Debt

NOTE 6 – NOTES PAYABLE AND OTHER LONG TERM DEBT

Notes payable and other long-term debt consist of the following:

	December 31,			June 30,
	2015			2015
Long-term Credit Facility	$	3,001,570		$	37,707,686
Senior Secured Loan		20,962,940			23,218,575
Subordinated Secured Loan		25,000,000			25,000,000
Other notes payable		424,461			509,340
Total notes payable and other long-term debt		49,388,971			86,435,601
Less: Current portion		(1,537,628	)		(543,086	)
Total notes payable, net of current portion	$	47,851,343		$	85,892,515

Future maturities of notes payable and other long-term debt for the years ending June 30 are as follows:

2016 (remaining portion)	$	422,478
2017		2,266,155
2018		2,364,441
2019		5,372,711
2020		2,533,717
Thereafter		36,429,469
	$	49,388,971

Bank of America Credit Facility

The Company has a $65.0 million senior credit facility (the “Credit Facility”) with Bank of America, N.A. (the “Lender”) on its own behalf and as agent to the other lenders named therein, currently consisting of the Bank of Montreal (as the initial member of the syndicate under such loan), pursuant to an Amended and Restated Loan and Security Agreement. The Credit Facility includes a $2.0 million sublimit to support letters of credit and matures August 9, 2018.

Borrowings accrue interest based on the Company’s fixed charge coverage ratio at the Lender’s base rate plus 0.0% to 0.50% or LIBOR plus 1.50% to 2.25%. The Credit Facility provides for advances of up to 85% of the eligible Canadian and domestic accounts receivable, 75% of eligible accrued but unbilled domestic receivables and eligible foreign accounts receivable, all of which are subject to certain sub-limits, reserves and reductions. The Credit Facility is collateralized by a first-priority security interest in all of the assets of the U.S. co-borrowers, a first-priority security interest in all of the accounts receivable and associated assets of the Canadian co-borrowers (the “Canadian A/R Assets”) and a second-priority security interest on the other assets of the Canadian borrowers.

Borrowings are available to fund future acquisitions, capital expenditures, repurchase of Company stock or for other corporate purposes. The terms of the Credit Facility are subject to customary financial and operational covenants, including covenants that may limit or restrict the ability to, among other things, borrow under the Credit facility, incur indebtedness from other lenders, and make acquisitions. As of December 31, 2015, the Company was in compliance with all of its covenants.

As of December 31, 2015, based on available collateral and $286,800 in outstanding letter of credit commitments, there was $46,917,000 available for borrowing under the Credit Facility and excluding any availability attributable to accounts receivable of SBA.

Senior Secured Loan

In connection with the Company’s acquisition of Wheels, Wheels obtained a CAD$29.0 million senior secured Canadian term loan from Integrated Private Debt Fund IV LP (“IPD”) pursuant to a CAD$29,000,000 Credit Facilities Loan Agreement (the “IPD Loan Agreement”). The Company and its U.S. and Canadian subsidiaries are guarantors of the Wheels obligations thereunder. The loan matures on April 1, 2024 and accrues interest at a rate of 6.65% per annum. The Company is required to maintain 5 months interest in a debt service reserve account to be controlled by IPD. This amount is recorded as deposits and other assets in the accompanying condensed consolidated financial statements. The loan repayment consists of interest-only payments for the first 12 months followed by blended principal and interest payments for the next eight years. The loan may be prepaid in whole at any time upon providing at least 30 days prior written notice and paying the difference between (i) the present value of the loan interest and the principal payments foregone discounted at the Government of Canada Bond Yield for the term from the date of prepayment to April 1, 2024, and (ii) the face value of the principal amount being prepaid. As of December 31, 2015, the Company was in compliance with all of its covenants.

The loan is collateralized by a (i) first-priority security interest in all of the assets of Wheels except the Canadian A/R Assets, (ii) a second-priority security interest in the Canadian A/R Assets, and (iii) a second-priority security interest on all of the Company’s assets.

Subordinated Secured Loan

In connection the Company’s acquisition of Wheels, the Company obtained a $25.0 million subordinated secured term loan from Alcentra Capital Corporation ($10.0 million) and Triangle Capital Corporation ($15.0 million) (collectively, the “Subordinated Lenders”) pursuant to a Loan and Security Agreement (the “Alcentra/Triangle Subordinated Loan Agreement”). The loan matures on April 2, 2021 and accrues interest at a rate of 12% per annum during the first six months of the loan and then at a variable rate, ranging from LIBOR plus 950 basis points to LIBOR plus 1025 basis points (all with a 100 basis points LIBOR floor), depending on the Company’s total leverage ratio. Prior to April 2, 2016, the loan may not be prepaid. After this, prior to April 2, 2017, the loan may be prepaid by paying a prepayment premium equal to 3% of the amount prepaid. After April 2, 2017, the loan may be prepaid, in whole or in part, without penalty. The Company may be required to prepay, at the Subordinated Lenders’ option, the entire amount of the loan (including applicable prepayment premiums) upon the occurrence of certain events, such as an event of default, a change in control, or the completion of a “going private” transaction. As of December 31, 2015, the Company was in compliance with all of its covenants.

The loan is collateralized by a third-priority security interest in all of the Company’s U.S. based assets. The loan is subordinate to the Senior Credit Facility and the loan from IPD, and is senior to all other indebtedness.

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Stockholders' Equity

6 Months Ended

Dec. 31, 2015

Equity [Abstract]

Stockholders' Equity

NOTE 7 – STOCKHOLDERS’ EQUITY

The Company is authorized to issue 5,000,000 shares of preferred stock, par value at $0.001 per share and 100,000,000 shares of common stock, $0.001 per share.

Series A Preferred Stock

The Company has 839,200 outstanding shares of 9.75% Series A Cumulative Redeemable Perpetual Preferred Stock (“Series A Preferred Shares”) liquidation preference $25 per share. Dividends on the Series A Preferred Shares are cumulative from the date of original issue and are payable on January 31, April 30, July 31 and October 31, as and if declared by the Company’s Board of Directors. If the Company does not pay dividends in full on any two payment dates (whether consecutive or not), the per annum dividend rate will increase an additional 2.0% per annum per $25.00 stated liquidation preference, up to a maximum of 19.0% per annum. If the Company fails to maintain the listing of the Series A Preferred Shares on the NYSE MKT or other exchange for 30 days or more, the per annum dividend rate will increase by an additional 2.0% per annum so long as the listing failure continues. The Series A Preferred Shares require the Company to maintain a Fixed Charge Coverage Ratio of at least 2.0. If the Company is not in compliance with this ratio, then it cannot pay any dividend on its common stock. As of December 31, 2015, the Company was in compliance with this ratio.

Commencing on December 20, 2018, the Company may redeem, at its option, the Series A Preferred Shares, in whole or in part, at a cash redemption price of $25.00 per share plus accrued and unpaid dividends (whether or not declared). Among other things, the Series A Preferred Shares have no stated maturity, are not subject to any sinking fund or other mandatory redemption, and are not convertible into or exchangeable for any of the Company’s other securities. Holders of Series A Preferred Shares generally have no voting rights, except if the Company fails to pay dividends on the Series A Preferred Shares for six or more quarterly periods (whether consecutive or not). Under such circumstances, holders of Series A Preferred Shares will be entitled to vote to elect two additional directors to the Company’s Board of Directors, until all unpaid dividends have been paid or declared and set aside for payment. In addition, certain changes to the terms of the Series A Preferred Shares cannot be made without the affirmative vote of the holders of two-thirds of the outstanding Series A Preferred Shares, voting as a separate class. The Series A Preferred Shares are senior to the Company’s common stock with respect to dividends and distributions, including distributions upon liquidation, dissolution or winding up. The Series A Preferred Shares are listed on the NYSE MKT under the symbol “RLGT-PA.”

For the six months ended December 31, 2015, the Company’s board of directors declared and paid a cash dividend to holders of Series A Preferred Shares in the amount of $1.218750 per share, totaling $1,022,775.

Common Stock

On July 16, 2015, the Company closed a registered underwritten public offering of 6,133,334 shares of common stock, including the full exercise of the underwriters’ overallotment option. Proceeds from the offering totaled $38,430,194 after deducting the underwriting discount of $2,484,000 and offering costs of $485,810. The proceeds were used to reduce the borrowings under the Credit Facility.

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Variable Interest Entity and Related Party Transactions

6 Months Ended

Dec. 31, 2015

Equity Method Investments And Joint Ventures [Abstract]

Variable Interest Entity and Related Party Transactions

NOTE 8 – VARIABLE INTEREST ENTITY AND RELATED PARTY TRANSACTIONS

RLP is owned 40% by RGL and 60% by RCP, a company for which the Chief Executive Officer of the Company is the sole member. RLP is a certified minority business enterprise that was formed for the purpose of providing the Company with a national accounts strategy to pursue corporate and government accounts with diversity initiatives. RCP’s ownership interest entitles it to a majority of the profits and distributable cash, if any, generated by RLP. The operations of RLP are intended to provide certain benefits to the Company, including expanding the scope of services offered by the Company and participating in supplier diversity programs not otherwise available to the Company. In the course of evaluating and approving the ownership structure, operations and economics emanating from RLP, a committee consisting of the independent Board member of the Company, considered, among other factors, the significant benefits provided to the Company through association with a minority business enterprise, particularly as many of the Company’s largest current and potential customers have a need for diversity offerings. In addition, the Committee concluded that the economic relationship with RLP was on terms no less favorable to the Company than terms generally available from unaffiliated third parties.

Certain entities in which equity investors do not have the characteristics of a controlling financial interest or do not have the sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties are considered “variable interest entities”. RLP qualifies as a variable interest entity and is included in the Company’s condensed consolidated financial statements.

RLP recorded $31,166 and $56,356 in profits, of which RCP’s distributable share was $18,699 and $33,813, for the three and six months ended December 31, 2015, respectively. RLP recorded $35,925 and $72,654 in profits, of which RCP’s distributable share was $21,555 and $43,592, for the three and six months ended December 31, 2014. The non-controlling interest recorded as a reduction of income on the condensed consolidated statements of operations represents RCP’s distributive share.

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Fair Value Measurements

6 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurements

NOTE 9 – FAIR VALUE MEASUREMENTS

The following table sets forth the Company’s financial liabilities measured at fair value on a recurring basis:

	Fair Value Measurements as of December 31, 2015
	Level 3		Total
Contingent consideration	$	6,755,000	$	6,755,000

	Fair Value Measurements as of June 30, 2015
	Level 3		Total
Contingent consideration	$	7,613,000	$	7,613,000

The Company has contingent obligations to transfer cash payments and equity shares to former shareholders of acquired operations in conjunction with certain acquisitions if specified operating results and financial objectives are met over the next four fiscal years. Contingent consideration is measured quarterly at fair value, and any change in the contingent liability is included in the condensed consolidated statements of operations. The Company recorded an increase to contingent consideration of $598,233 and $186,233 for the three and six months ended December 31, 2015, respectively, and a decrease to contingent consideration of $170,796 and $720,796 for the three and six months ended December 31, 2014, respectively. The change in the current period is principally attributable to a reduction in management’s estimates of future pay-outs for OTE, offset by an increase in management’s estimated future pay-out for DCA.

The Company uses projected future financial results based on recent and historical data to value the anticipated future earn-out payments. To calculate fair value, the future earn-out payments were then discounted using Level 3 inputs. The Company has classified the contingent consideration as Level 3 due to the lack of relevant observable market data over fair value inputs. The Company believes the discount rate used to discount the earn-out payments reflects market participant assumptions. Changes in assumptions and operating results could have a significant impact on the earn-out amount, up to a maximum of $20,510,000 through earn-out periods measured through November 2019, although there are no maximums on certain earn-out payments. Contingent consideration is net of advances on earn-out payments of $0.8 million.

The following table provides a reconciliation of the beginning and ending liabilities for the liabilities measured at fair value using significant unobservable inputs (Level 3):

	Contingent Consideration
Balance as of June 30, 2015	$	7,613,000
Increase related to accounting for acquisition		425,000
Contingent consideration paid		(1,469,233	)
Change in fair value		186,233
Balance as of December 31, 2015	$	6,755,000

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Provision for Income Taxes

6 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Provision for Income Taxes

NOTE 10 – PROVISION FOR INCOME TAXES

	Three months ended December 31,					Six months ended December 31,
	2015			2014		2015			2014
Current income tax expense	$	244,441		$	611,252	$	912,935		$	1,758,376
Deferred income tax benefit		(1,871,674	)		5,239		(2,306,830	)		(239,959	)
Income tax expense (benefit)	$	(1,627,233	)	$	616,491	$	(1,393,895	)	$	1,518,417

Our effective tax rate is higher than the U.S. federal statutory rate primarily due to state income taxes and the fact that the Company has a loss in a foreign jurisdiction that is being benefitted at a lower foreign rate. This is partially offset by a benefit for a nontaxable gain related to contingent consideration.

Tax years which remain subject to examination by federal authorities are the years ended June 30, 2012 through June 30, 2015. Tax years which remain subject to examination by state authorities are the years ended June 30, 2011 through June 30, 2015.

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Share-Based Compensation

6 Months Ended

Dec. 31, 2015

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-Based Compensation

NOTE 11 – SHARE-BASED COMPENSATION

Stock Awards

The Company granted restricted stock awards to certain employees in August 2012. The shares are restricted in transferability for a term of up to five years and are forfeited in the event the employee terminates employment prior to the lapse of the restriction. The awards generally vest ratably over a five year period. The Company recognized share-based compensation expense related to stock awards of $929 and $2,190 during the three and six months ended December 31, 2015, respectively, and $1,261 and $2,522 during the three and six months ended December 31, 2014, respectively. The following table summarizes stock award activity under the plan:

	Number of Shares			Weighted Average Grant- date Fair Value
Balance as of June 30, 2015		4,577		$	1.62
Vested		(3,113	)		1.62
Balance as of December 31, 2015		1,464		$	1.62

Stock Options

The Company recognized share-based compensation expense related to stock options of $367,168 and $756,006 for the three and six months ended December 31, 2015, respectively, and $245,578 and $449,046 in the three and six months ended December 31, 2014, respectively. The aggregate intrinsic value of options exercised was $46,127 and $326,573 for the three and six months ended December 31, 2015, respectively, and $102,825 and $1,378,148 for the three and six months ended December 31, 2014, respectively.

During the six months ended December 31, 2015, the weighted average fair value per share of employee stock options granted was $2.28. The fair value of each stock option grant is estimated as of the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions:

	Six Months Ended December31, 2015
Risk-Free Interest Rate	1.57 - 1.92%
Expected Term	6.5 years
Expected Volatility	46.60 - 53.49%
Expected Dividend Yield		0.00%

The following table summarizes the activity under the plan:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value
Outstanding as of June 30, 2015		4,509,887		$	2.80		7.75	$	20,357,403
Granted		350,000			4.37		10.00		—
Exercised		(109,813	)		2.46		—		—
Forfeited		(232,452	)		3.19		—		—
Outstanding as of December 31, 2015		4,517,622		$	2.91		7.39	$	4,369,421
Exercisable as of December 31, 2015		1,542,416		$	1.62		5.34	$	2,843,265

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Contingencies

6 Months Ended

Dec. 31, 2015

Commitments And Contingencies Disclosure [Abstract]

Contingencies

NOTE 12 – CONTINGENCIES

Legal Proceedings

DBA Distribution Services, Inc. – Bretta Santini Pollara v. Radiant Logistics, Inc., United States District Court, Central District of California, Case No. 12-344 GAF

In December 2012, an arbitrator awarded the Company damages from the former shareholders of DBA, finding that the former shareholders breached certain representations and warranties contained in the DBA Agreement. In addition, the arbitrator found that Paul Pollara breached his noncompetition obligation to the Company and enjoined Mr. Pollara from engaging in any activity in contravention of his obligations of noncompetition and non-solicitation, including activities that relate to Santini Productions and his spouse, Bretta Santini Pollara until March 2016. The award also provided that the former DBA Shareholders and Mr. Pollara must pay to the Company the administrative fees, compensation and expenses of the arbitrator associated with the arbitration. The award has been off-set against amounts due to former shareholders of acquired operations. The gain on litigation settlement was recorded net of judgment interest and associated legal costs.

In a related matter, in December 2011, Ms. Pollara filed a claim for declaratory relief against the Company seeking an order stipulating that she is not bound by the non-compete covenant contained within the DBA Agreement signed by her husband, Mr. Pollara. On January 23, 2012, the Company filed a counterclaim against Ms. Pollara, her company Santini Productions, Daniel Reffner (a former employee of the Company now working for Ms. Pollara), and Oceanair, Inc. (“Oceanair”, a company doing business with Santini Productions). The Company’s counterclaim alleges claims for statutory and common law misappropriation of trade secrets, breach of duty of loyalty, and unfair competition, and sought damages in excess of $1,000,000.

On April 25, 2014, a jury returned a verdict in the Company’s favor in the amount of $1,500,000, but the judge entered a judgment notwithstanding the verdict and dismissed the case. The Company has filed a notice of appeal with the 9^th Circuit Court of Appeals. Santini and Oceanair also appealed the trial court’s denial of fees. Both issues are fully briefed, and the trial date with the Court of Appeals has been set for May 2016. Due to the uncertainty associated with the litigation and judicial review process, the Company is unable at this time to express an opinion as to the outcome of this matter.

Ingrid Barahoma v. Accountabilities, Inc. d/b/a/ Accountabilities Staffing, Inc., Radiant Global Logistics, Inc. and DBA Distribution Services, Inc. (Ingrid Barahona California Class Action)

On October 25, 2013, plaintiff Ingrid Barahona filed a purported class action lawsuit against RGL, DBA Distribution Services, Inc. (“DBA”), and two third-party staffing companies (collectively, the “Staffing Defendants”) with whom Radiant and DBA contracted for temporary employees. In the lawsuit, Ms. Barahona, on behalf of herself and the putative class, seeks damages and penalties under California law, plus interest, attorneys’ fees, and costs, along with equitable remedies, alleging that she and the putative class were the subject of unfair and unlawful business practices, including certain wage and hour violations relating to, among others, failure to provide meal and rest periods, failure to pay minimum wages and overtime, and failure to reimburse employees for work-related expenses. Ms. Barahona alleges that she was jointly employed by the staffing companies and Radiant and DBA. Radiant and DBA deny Ms. Barahona’s allegations in their entirety, deny that they are liable to Ms. Barahona or the putative class members in any way, and are vigorously defending against these allegations based upon a preliminary evaluation of applicable records and legal standards.

If Ms. Barahona’s allegations were to prevail on all claims the Company, as well as its co-defendants, could be liable for uninsured damages in an amount that, while not significant when evaluated against either the Company’s assets or current and expected level of annual earnings, could be material when judged against the Company’s earnings in the particular quarter in which any such damages arose, if at all. However, based upon the Company’s preliminary evaluation of the matter, it does not believe it is likely to incur material damages, if at all, since, among others: (i) the amount of any potential damages remains highly speculative at this stage of the proceedings; (ii) the Company does not believe as a matter of law it should be characterized as Ms. Barahona’s employer and co-defendant Accountabilities admitted to being the employer of record, (iii) any settlement will be properly apportioned between all named defendants and Radiant and DBA will not exclusively fund the settlement; (iv) wage and hour class actions of this nature typically settle for amounts significantly less than plaintiffs’ demands because of the uncertainly with litigation and the difficulty in taking these types of cases to trial; and (v) Plaintiff has indicated her desire to resolve this matter through a mediated settlement. Plaintiff recently admitted in a report to the court that she is unable to prosecute the case because the payroll and personnel records she needs are in the possession of Tri-State and/or Accountabilities, and the case has been stayed as to them pending resolution of their chapter 11 bankruptcy proceedings. In January 2016, the court held a status conference, which has since been continued until May 2016 so the parties can attempt to obtain the necessary documents. The parties are in the process of trying to obtain the records. At this time, the Company is unable to express an opinion as to the likely outcome of the matter.

High Protection Company, a Utah Corporation, Plaintiff v. Professional Air Transportation, LLC, a Utah Limited Liability Company, d/b/a ADCOM, SLC; Radiant Logistics, Inc., a Foreign Corporation; ADCOM World-Wide,, an Operating Division of Radiant Logistics, Inc.; Radiant Global Logistics, Inc., a Foreign Corporation, d/b/a Container Lines; Felipe Lake, an Individual, Rubens Correa, an Individual; and Does 1-100, Defendants, United States District Court for the District Court of Utah (Central), Civil Docket No. 2:14-cv-00466-TC-BCW (formerly Salt Lake County, Utah, Case # 140902965)

On or about May 27, 2014, the Company, together with its co-defendants, including certain of its subsidiaries, were sued in the Third Judicial District Court, Salt Lake County, State of Utah. The matter was subsequently removed to the Federal Courts in the United States District Court, for the District of Utah. The lawsuit alleges liability and damages arising from the ocean shipment of five (5) armored vehicles from Jordan to the Kandahar Air Base, Afghanistan, commencing in August, 2011.

On April 10, 2011, the Plaintiff, High Protection Company, was awarded a contract from the United States Army in the amount of $716,000 for the manufacture and delivery of five armored vehicles. The vehicles were to be delivered to the Kandahar Airfield in Kandahar, Afghanistan, by May 16, 2011. The delivery of the vehicles was delayed into 2013 due to various delays that occurred during the shipping process, including the closing of the border between Pakistan and Afghanistan from November 2011 to July 2012. In June 2013, the United States Army terminated its contract with the Plaintiff. Plaintiff asserted damages against the Company and its co-defendants in excess of $1,000,000, including loss of a $716,000 contract with the United States Army, demurrage and storage charges now alleged to exceed $200,000, and loss of the vehicles.

Based upon the Company’s preliminary understanding of the claims, it does not believe it is likely to be exposed to damages, or damages that are material, since, among others: (i) the Company is insured for claims of this nature subject to a $1,000,000 aggregate limit for all claims made and reported during the policy period (subject to a typical reservation of rights letter received from the Underwriter); (ii) the Company believes the Plaintiff’s losses, if any, were due, to a material extent, to its own contributory negligence; and (iii) the Plaintiff’s claim should be limited as a result of the limitations upon liability contained within the air bill of lading and other shipping documents used in the transaction.

In compliance with an Amended Scheduling Order, discovery has continued, and expert discovery has been scheduled. The Amended Scheduling Order permits amendment of pleadings, joinder of parties; expert discovery, dispositive motions, and final pre-trial conferences. The Amended Scheduling Order also includes scheduling for a potential jury trial date in December 2016. Plaintiff and Defendants have filed Motions for Summary Judgment with supporting Memoranda. An Order granting a Motion to Stay Proceedings was granted in December 2015 for purposes of a pending Mediation scheduled to commence in February 2016. Since the proceeding remains in its early stages, the Company is unable at this time to express an opinion as to the outcome of this matter.

The Company is involved in various other claims and legal actions arising in the ordinary course of business, some of which are in the very early stages of litigation and therefore difficult to judge their potential materiality. For those claims for which we can judge the materiality, in the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations or liquidity. Legal expenses are expensed as incurred.

Contingent Consideration and Earn-out Payments

The Company’s agreements with respect to previous acquisitions contain future consideration provisions which provide for the selling shareholder(s) to receive additional consideration if specified operating objectives and financial results are achieved in future periods, as defined in their respective agreements. Any changes to the fair value of the contingent consideration are recorded in the consolidated statements of operations. Earn-out payments are generally due annually on November 1, and 90 days following the quarter of the final earn-out period for each respective acquisition.

The following table represents the estimated undiscounted earn-out payments to be paid in each of the following fiscal years:

	2016(remaining)		2017		2018		2019		2020		Total
Earn-out payments (in thousands):
Cash	$	110	$	2,891	$	2,164	$	241	$	144	$	5,550
Equity		—		964		721		80		48		1,813
Total estimated earn-out payments (1)	$	110	$	3,855	$	2,885	$	321	$	192	$	7,363

(1) The Company generally has the right but not the obligation to satisfy a portion of the earn-out payments in stock.

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Operating and Geographic Segment Information

6 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Operating and Geographic Segment Information

NOTE 13 – OPERATING AND GEOGRAPHIC SEGMENT INFORMATION

Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker, or decision-making group, in making decisions regarding allocation of resources and assessing performance. The Company’s chief operating decision-maker is the Chief Executive Officer. With the recent acquisition of Wheels, the Company has determined that it has two geographic operating segments: United States and Canada. Immaterial operations outside of the United States and Canada are reported in the United States segment.

The Company evaluates the performance of the segments primarily based on their respective revenues, net revenues and income from operations. Accordingly, capital expenditures and total assets are not reported in segment results. In addition, the Company has disclosed a corporate segment, which is not an operating segment and includes the costs of the Company’s executives, board of directors, professional services such as legal and consulting, amortization of intangible assets and certain other corporate costs associated with operating as a public company. Intercompany transactions have been eliminated in the condensed consolidated balance sheets and statements of operations.

Three months ended December 31, 2015 (in thousands)	United States		Canada			Corporate/ Eliminations			Total
Revenues	$	179,519	$	28,609		$	(1,177	)	$	206,951
Net revenues		42,568		5,028			—			47,596
Income (loss) from operations		4,229		1,058			(7,844	)		(2,557	)
Other income (expense)		266		(24	)		(1,310	)		(1,068	)
Income (loss) before income tax expense		4,495		1,034			(9,154	)		(3,625	)
Depreciation and amortization		719		182			2,218			3,119
Furniture and equipment, net		11,679		1,634			—			13,313
Goodwill		43,215		19,904			—			63,119
Three months ended December 31, 2014 (in thousands)
Revenues	$	105,948	$	—		$	—		$	105,948
Net revenues		27,592		—			—			27,592
Income from operations		2,486		—			(974	)		1,512
Other income (expense)		61		—			(96	)		(35	)
Income (loss) before income tax expense		2,547		—			(1,070	)		1,477
Depreciation and amortization		1,100		—			—			1,100
Furniture and equipment, net		2,458		—			—			2,458
Goodwill		29,467		—			—			29,467
Six months ended December 31, 2015 (in thousands)	United States		Canada			Corporate/ Eliminations			Total
Revenues	$	370,578	$	57,664		$	(2,639	)	$	425,603
Net revenues		88,452		9,857			—			98,309
Income (loss) from operations		11,550		(631	)		(11,823	)		(904	)
Other income (expense)		371		216			(2,720	)		(2,133	)
Income (loss) before income tax expense		11,921		(415	)		(14,543	)		(3,037	)
Depreciation and amortization		1,458		354			4,412			6,224
Furniture and equipment, net		11,679		1,634			—			13,313
Goodwill		43,215		19,904			—			63,119
Six months ended December 31, 2014 (in thousands)
Revenues	$	204,179	$	—		$	—		$	204,179
Net revenues		53,917		—			—			53,917
Income from operations		5,986		—			(2,066	)		3,920
Other income (expense)		188		—			(187	)		1
Income (loss) before income tax expense		6,174		—			(2,253	)		3,921
Depreciation and amortization		2,379		—			—			2,379
Furniture and equipment, net		2,458		—			—			2,458
Goodwill		29,467		—			—			29,467

The Company’s revenue generated within the United States consists of any shipment whose origin and destination is within the United States. The following data presents the Company’s revenue generated from shipments to and from the United States and all other countries, which is determined based upon the geographic location of a shipment’s initiation and destination points (in thousands):

	United States				Other Countries				Total
Three months ended December 31:	2015		2014		2015		2014		2015		2014
Revenue	$	118,197	$	62,246	$	88,754	$	43,702	$	206,951	$	105,948
Cost of transportation		95,794		42,747		63,561		35,609		159,355		78,356
Net revenue	$	22,403	$	19,499	$	25,193	$	8,093	$	47,596	$	27,592
	United States				Other Countries				Total
Six months ended December 31:	2015		2014		2015		2014		2015		2014
Revenue	$	243,563	$	123,106	$	182,040	$	81,073	$	425,603	$	204,179
Cost of transportation		189,644		84,946		137,650		65,316		327,294		150,262
Net revenue	$	53,919	$	38,160	$	44,390	$	15,757	$	98,309	$	53,917

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Subsequent Event

6 Months Ended

Dec. 31, 2015

Subsequent Events [Abstract]

Subsequent Event

NOTE 14 – SUBSEQUENT EVENT

On January 7, 2016, the Company’s board of directors authorized the repurchase of up to 5,000,000 shares of the Company’s common stock through December 31, 2016. Under the stock repurchase program, the Company is authorized to repurchase, from time-to-time, shares of its outstanding common stock in the open market at prevailing market prices or through privately negotiated transactions as permitted by securities laws and other legal requirements. The program does not obligate the Company to repurchase any specific number of shares and may be suspended or terminated at any time without prior notice. The Company has not purchased any shares under this program as of the date of this filing.

On January 22, 2016, the Company’s board of directors declared a cash dividend to holders of the Series A Preferred Shares in the amount of $0.609375 per share. The total declared dividend totaled $511,388 and was paid on February 1, 2016.

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Use of Estimates

a) Use of Estimates

The preparation of financial statements and related disclosures in accordance with accounting principles generally accepted in the United States (“GAAP”) 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 revenue and expenses during the reporting period. Such estimates include revenue recognition, accruals for the cost of purchased transportation, the fair value of acquired assets and liabilities, changes in contingent consideration, accounting for the issuance of shares and share-based compensation, the assessment of the recoverability of long-lived assets and goodwill, and the establishment of an allowance for doubtful accounts. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the period that they are determined to be necessary. Actual results could differ from those estimates.

Fair Value Measurements

b) Fair Value Measurements

In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs utilize observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and include situations where there is little, if any, market activity for the asset or liability.

Fair Value of Financial Instruments

c) Fair Value of Financial Instruments

The carrying values of the Company’s receivables, accounts payable and accrued transportation costs, commissions payable, other accrued costs, and the income tax deposit approximate the fair values due to the relatively short maturities of these instruments. The carrying value of the Company’s credit facility and other long-term liabilities would not differ significantly from fair value (based on Level 2 inputs) if recalculated based on current interest rates. Contingent consideration attributable to the Company’s acquisitions are reported at fair value using Level 3 inputs.

Cash and Cash Equivalents

d) Cash and Cash Equivalents

For purposes of the statements of cash flows, cash equivalents include all highly liquid investments with original maturities of three months or less that are not securing any corporate obligations. Cash balances may at times exceed federally insured limits. Checks issued by the Company that have not yet been presented to the bank for payment are reported as accounts payable and commissions payable in the accompanying consolidated balance sheets. Accounts payable and commissions payable includes outstanding payments which had not yet been presented to the bank for payment in the amounts of $7,344,905 and $3,137,103 as of December 31, 2015 and June 30, 2015, respectively.

Concentrations

e) Concentrations

The Company maintains its cash in bank deposit accounts that, at times, may exceed federally-insured limits. The Company has not experienced any losses in such accounts.

Accounts Receivable

f) Accounts Receivable

The Company’s receivables are recorded when billed and represent claims against third parties that will be settled in cash. The carrying value of the Company’s receivables, net of the allowance for doubtful accounts, represents their estimated net realizable value. The Company evaluates the collectability of accounts receivable on a customer-by-customer basis. The Company records a reserve for bad debts against amounts due to reduce the net recognized receivable to an amount the Company believes will be reasonably collected. The reserve is a discretionary amount determined from the analysis of the aging of the accounts receivables, historical experience and knowledge of specific customers.

The Company derives a substantial portion of its revenue through independently-owned strategic operating partner locations operating under the various Company brands. Each individual strategic operating partner is responsible for some or all of the bad debt expense related to the underlying customers being serviced by the office. To facilitate this arrangement, certain strategic operating partners are required to maintain a security deposit with the Company that is recognized as a liability in the Company’s financial statements. The Company charges each individual strategic operating partner’s bad debt reserve account for any accounts receivable aged beyond 90 days. However, the bad debt reserve account may carry a deficit balance when amounts charged to this reserve exceed amounts otherwise available in the bad debt reserve account. In these circumstances, deficit bad debt reserve accounts, as well as other deficit balances owed to us by our strategic operating partners, are recognized as a receivable in the Company’s financial statements. Other strategic operating partners are not responsible to establish a bad debt reserve, however, they are still responsible for deficits and their strategic operating partner agreements provide that the Company may withhold all or a portion of future commission checks payable to the individual operating partner in satisfaction of any deficit balance. Currently, a number of the Company’s operating partners have a deficit balance in their bad debt reserve account. The Company expects to replenish these funds through the future business operations of these operating partners. However, to the extent any of these operating partners were to cease operations or otherwise be unable to replenish these deficit accounts, the Company would be at risk of loss for any such amount.

Furniture and Equipment

g) Furniture and Equipment

Technology (computer software, hardware, and communications), vehicles, furniture, and equipment are stated at cost, less accumulated depreciation over the estimated useful lives of the respective assets. Depreciation is computed using three to fifteen year lives for vehicles, communication, office, furniture, and computer equipment using the straight line method of depreciation. Computer software is depreciated over a three year life using the straight line method of depreciation. For leasehold improvements, the cost is depreciated over the shorter of the lease term or useful life on a straight line basis. Upon retirement or other disposition of these assets, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss, if any, is reflected in other income or expense. Expenditures for maintenance, repairs and renewals of minor items are charged to expense as incurred. Major renewals and improvements are capitalized.

Goodwill

h) Goodwill

Goodwill represents the excess of purchase price over the value assigned to the net tangible and identifiable intangible assets of a business acquired. The Company typically performs its annual goodwill impairment test effective as of April 1 of each year, unless events or circumstances indicate impairment may have occurred before that time. The Company assesses qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. After assessing qualitative factors, the Company determined that no further testing was necessary. If further testing was necessary, the Company would have performed a two-step impairment test for goodwill. The first step requires the Company to determine the fair value of each reporting unit, and compare the fair value to the reporting unit’s carrying amount. To the extent a reporting unit’s carrying amount exceeds its fair value, an indication exists that the reporting unit’s goodwill may be impaired and the Company must perform a second more detailed impairment assessment. The second impairment assessment involves allocating the reporting unit’s fair value to all of its recognized and unrecognized assets and liabilities in order to determine the implied fair value of the reporting unit’s goodwill as of the assessment date. The implied fair value of the reporting unit’s goodwill is then compared to the carrying amount of goodwill to quantify an impairment charge as of the assessment date. As of December 31, 2015, management believes there are no indications of impairment.

Long-Lived Assets

i) Long-Lived Assets

Acquired intangibles consist of customer related intangibles, trade names and trademarks, and non-compete agreements arising from the Company’s acquisitions. Customer related intangibles are amortized using the straight-line method over a period of up to 10 years, trademarks and trade names are amortized using the straight line method over 15 years, and non-compete agreements are amortized using the straight line method over the term of the underlying agreements.

The Company reviews long-lived assets to be held-and-used for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable. If the sum of the undiscounted expected future cash flows over the remaining useful life of a long-lived asset is less than its carrying amount, the asset is considered to be impaired. Impairment losses are measured as the amount by which the carrying amount of the asset exceeds the fair value of the asset. When fair values are not available, the Company estimates fair value using the expected future cash flows discounted at a rate commensurate with the risks associated with the recovery of the asset. Assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell. As of December 31, 2015, the Company concluded it had a triggering event requiring assessment of customer related intangibles associated with the On Time Express, Inc. (“OTE”) acquisition due to a loss of customers. As a result, the Company reviewed the customer related intangibles and recorded an impairment loss of $3,679,825. The impairment was measured using future discounted cash flows using Level 3 inputs in the fair value hierarchy.

Business Combinations

j) Business Combinations

The Company accounts for business combinations using the purchase method of accounting and allocates the purchase price to the tangible and intangible assets acquired and the liabilities assumed based upon their estimated fair values at the acquisition date. The difference between the purchase price and the fair value of the net assets acquired is recorded as goodwill. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, the estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded in the consolidated statements of income.

The fair values of intangible assets acquired are estimated using a discounted cash flow approach with Level 3 inputs. Under this method, an intangible asset’s fair value is equal to the present value of the incremental after-tax cash flows (excess earnings) attributable solely to the intangible asset over its remaining useful life. To calculate fair value, the Company uses risk-adjusted cash flows discounted at rates considered appropriate given the inherent risks associated with each type of asset. The Company believes the level and timing of cash flows appropriately reflects market participant assumptions.

The Company determines the acquisition date fair value of the contingent consideration payable based on the likelihood of paying the contingent consideration as part of the consideration transferred. The fair value is estimated using projected future operating results and the corresponding future earn-out payments that can be earned upon the achievement of specified operating objectives and financial results by our acquired companies using Level 3 inputs and the amounts are then discounted to present value. These liabilities are measured quarterly at fair value, and any change in the contingent liability is included in the consolidated statements of income.

Commitments

k) Commitments

The Company has operating lease commitments for equipment rentals, office space, and warehouse space under non-cancelable operating leases expiring at various dates through May 2021. Rent expense is recognized straight line over the term of the lease. Minimum future lease payments (excluding the lease payments included in the lease termination liability) under these non-cancelable operating leases for the next five fiscal years ending June 30 and thereafter are as follows:

2016 (remaining portion)	$	2,797,523
2017		4,953,643
2018		3,384,768
2019		2,640,941
2020		1,666,244
Thereafter		975,485
Total minimum lease payments	$	16,418,604

Rent expense amounted to $1,402,522 and $2,878,909 for the three and six months ended December 31, 2015, respectively, and $451,662 and $975,278 for the three and six months ended December 31, 2014.

Lease Termination and Transition Costs

l) Lease Termination and Transition Costs

Lease termination costs consist of expenses related to future rent payments for which we no longer intend to receive any economic benefit. A liability is recorded when we cease to use leased space. Lease termination costs are calculated as the present value of lease payments, net of expected sublease income, and the loss on disposition of assets. Transition costs consist of nonrecurring personnel costs that will be eliminated in connection with the winding-down of the historical back-office of SBA and other operating locations     as well as the periodic expense of retention bonuses, estimated to be $735,000, which is being expensed over the requisite service period.

The transition and lease termination liability consists of the following:

	Lease Termination Costs			Severance Costs			Non-recurring Personnel Costs			Total
Balance as of June 30, 2015		255,272			28,500			—			283,772
Lease termination and transition costs		2,107,343			834,666			1,377,639			4,319,648
Payments and other		(744,779	)		(114,129	)		(1,377,639	)		(2,236,547	)
Balance as of December 31, 2015	$	1,617,836		$	749,037		$	—		$	2,366,873

401(k) Savings Plans

m) 401(k) Savings Plans

The Company has employee savings plans under which the Company provides matching contributions. The Company’s contributions under the plans were $152,877 and $299,409 for the three and six ended December 31, 2015, respectively, and $119,576 and $223,097 for the three and six months ended December 31, 2014.  

Income Taxes

n) Income Taxes

Deferred income taxes are reported using the asset and liability method. Deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

The Company reports a liability for unrecognized tax benefits resulting from uncertain income tax positions taken or expected to be taken in an income tax return. Estimated interest and penalties, if any, are recorded as a component of interest expense or other expense, respectively.

Revenue Recognition and Purchased Transportation Costs

o) Revenue Recognition and Purchased Transportation Costs

The Company is the primary obligor responsible for providing the service desired by the customer and is responsible for fulfillment, including the acceptability of the service(s) ordered or purchased by the customer. At the Company’s sole discretion, it sets the prices charged to its customers, and is not required to obtain approval or consent from any other party in establishing its prices. The Company has multiple suppliers for the services it sells to its customers, and has the absolute and complete discretion and right to select the supplier that will provide the product(s) or service(s) ordered by a customer, including changing the supplier on a shipment-by-shipment basis. In most cases, the Company determines the nature, type, characteristics, and specifications of the service(s) ordered by the customer. The Company also assumes credit risk for the amount billed to the customer.

As a non-asset based carrier, the Company generally does not own transportation assets. The Company generates the major portion of its freight forwarding revenues by purchasing transportation services from direct (asset-based) carriers and reselling those services to its customers. Based upon the terms in the contract of carriage, revenues related to shipments where the Company issues a House Airway Bill or a House Ocean Bill of Lading are recognized at the time the freight is tendered to the direct carrier at origin net of duties and taxes. Costs related to the shipments are also recognized at this same time based upon anticipated margins, contractual arrangements with direct carriers, and other known factors. The estimates are routinely monitored and compared to actual invoiced costs. The estimates are adjusted as deemed necessary by the Company to reflect differences between the original accruals and actual costs of purchased transportation.

This method generally results in recognition of revenues and purchased transportation costs earlier than the preferred methods under GAAP which does not recognize revenue until a proof of delivery is received or which recognizes revenue as progress on the transit is made. The Company’s method of revenue and cost recognition does not result in a material difference from amounts that would be reported under such other methods.

All other revenue, including revenue from other value-added services including brokerage services, warehousing and fulfillment services, is recognized upon completion of the service.

Share-Based Compensation

p) Share-Based Compensation

The Company has issued restricted stock awards and stock options to certain directors, officers and employees. The Company accounts for share-based compensation under the fair value recognition provisions such that compensation cost is measured at the grant date based on the value of the award and is expensed ratably over the vesting period. Determining the fair value of share-based awards at the grant date requires judgment, including estimating the percentage of awards that will be forfeited, stock volatility, the expected life of the award, and other inputs. If actual forfeitures differ significantly from the estimates, share-based compensation expense and the Company’s results of operations could be materially impacted. The Company issues new shares of common stock to satisfy exercises and vesting of awards granted under our stock plan.

The Company recorded share-based compensation expense of $368,097 and $758,196 for the three and six months ended December 31, 2015, respectively, and $246,839 and $451,568 for the three and six months ended December 31, 2014.

Basic and Diluted Income Per Share

q) Basic and Diluted Income Per Share

Basic income per share is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding. Diluted income per share is computed similar to basic income per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares, such as stock awards and stock options, had been issued and if the additional common shares were dilutive. Net income attributable to common stockholders is calculated after earned preferred stock dividends, whether or not declared.

For the three months ended December 31, 2015, the weighted average outstanding number of potentially dilutive common shares totaled 48,732,762 shares of common stock. Unvested restricted stock awards and options to purchase 4,519,086 shares of common stock were excluded from the diluted income per share for the three months ended December 31, 2015 as there was a net loss in the period and their effect would have been antidilutive. For the three months ended December 31, 2014, the weighted average outstanding number of potentially dilutive common shares totaled 36,184,653 shares of common stock, including unvested restricted stock awards and options to purchase 5,356,821 shares of common stock as of December 31, 2014, of which 946,536 were excluded as their effect would have been antidilutive.

For the six months ended December 31, 2015, the weighted average outstanding number of potentially dilutive common shares totaled 48,054,100 shares of common stock. Unvested restricted stock awards and options to purchase 4,519,086 shares of common stock were excluded from the diluted income per share for the six months ended December 31, 2015, as there was a net loss in the period and their effect would have been antidilutive. For the six months ended December 31, 2014, the weighted average outstanding number of potentially dilutive common shares totaled 36,005,995 shares of common stock, including unvested restricted stock awards and options to purchase 5,356,821 shares of common stock as of December 31, 2014, of which 980,627 were excluded as their effect would have been antidilutive.

The following table reconciles the numerator and denominator of the basic and diluted per share computations for earnings per share as follows:

	Three months ended December 31,				Six months ended December 31,
	2015		2014		2015		2014
Weighted average basic shares outstanding		48,732,762		34,627,645		48,054,100		34,488,616
Dilutive effect of share-based awards		—		1,557,008		—		1,517,379
Weighted average dilutive shares outstanding		48,732,762		36,184,653		48,054,100		36,005,995

Foreign Currency Translation

r) Foreign Currency Translation

For the Company’s significant foreign subsidiaries that prepare financial statements in currencies other than U.S. dollars, the local currency is the functional currency. All assets and liabilities are translated at period-end exchange rates and all income statement amounts are translated at the weighted average rates for the period. Translation adjustments are recorded in accumulated other comprehensive (loss) income. Gains and losses on transactions of monetary items are recognized in the consolidated statements of operations.

Reclassifications

s) Reclassifications

Certain amounts for prior periods have been reclassified in the Company’s consolidated financial statements to conform to the classification used in fiscal year 2016.

Recent Accounting Pronouncements

t) Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, to clarify the principles used to recognize revenue for all entities. The guidance is effective for annual and interim periods beginning after December 15, 2017, and early adoption is permitted. The Company is currently evaluating the impact, if any, that the adoption of this guidance will have on the Company’s consolidated financial statements and related disclosures.

In April 2015, the FASB issued ASU 2015-03, Imputation of Interest, requiring entities to present debt issuance costs related to a debt liability as a reduction of the carrying amount of that liability. In August 2015, the FASB issued ASU 2015-15 to provide additional guidance related to debt issuance costs related to line-of-credit arrangements. The guidance is effective for annual and interim periods beginning after December 15, 2015, and early adoption is permitted. The Company is currently evaluating the impact, if any, that the adoption of this guidance will have on the Company’s consolidated financial statements and related disclosures.

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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Schedule of Minimum Future Lease Payments (Excluding Lease Termination Liability) under Non-Cancelable Operating Leases

Minimum future lease payments (excluding the lease payments included in the lease termination liability) under these non-cancelable operating leases for the next five fiscal years ending June 30 and thereafter are as follows:

2016 (remaining portion)	$	2,797,523
2017		4,953,643
2018		3,384,768
2019		2,640,941
2020		1,666,244
Thereafter		975,485
Total minimum lease payments	$	16,418,604

Schedule of Transition and Lease Termination Liability

The transition and lease termination liability consists of the following:

	Lease Termination Costs			Severance Costs			Non-recurring Personnel Costs			Total
Balance as of June 30, 2015		255,272			28,500			—			283,772
Lease termination and transition costs		2,107,343			834,666			1,377,639			4,319,648
Payments and other		(744,779	)		(114,129	)		(1,377,639	)		(2,236,547	)
Balance as of December 31, 2015	$	1,617,836		$	749,037		$	—		$	2,366,873

Reconciliation of Numerator and Denominator of Basic and Diluted Per Share Computations for Earnings Per Share

The following table reconciles the numerator and denominator of the basic and diluted per share computations for earnings per share as follows:

	Three months ended December 31,				Six months ended December 31,
	2015		2014		2015		2014
Weighted average basic shares outstanding		48,732,762		34,627,645		48,054,100		34,488,616
Dilutive effect of share-based awards		—		1,557,008		—		1,517,379
Weighted average dilutive shares outstanding		48,732,762		36,184,653		48,054,100		36,005,995

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Furniture and Equipment (Tables)

6 Months Ended

Dec. 31, 2015

Property Plant And Equipment [Abstract]

Schedule of Furniture and Equipment

	December 31,			June 30,
	2015			2015
Vehicles	$	5,030,898		$	5,384,161
Communication equipment		179,817			111,790
Office and warehouse equipment		490,532			471,915
Furniture and fixtures		598,126			585,820
Computer equipment		1,613,426			1,364,648
Computer Software		8,807,964			7,209,965
Leasehold improvements		1,498,551			1,324,437
		18,219,314			16,452,736
Less: Accumulated depreciation and amortization		(4,906,620	)		(3,276,846	)
	$	13,312,694		$	13,175,890

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Acquired Intangible Assets (Tables)

6 Months Ended

Dec. 31, 2015

Goodwill And Intangible Assets Disclosure [Abstract]

Schedule of Acquired Intangible Assets

The table below reflects acquired intangible assets related to all acquisitions:

	December 31,			June 30,			Weighted-Average
	2015			2015			Life
Customer related	$	85,823,815		$	88,287,640		8.6 years
Trade names and trademarks		14,069,000			14,069,000		14.3 years
Covenants not to compete		740,000			730,000		2.1 years
		100,632,815			103,086,640
Less: Accumulated amortization		(24,544,338	)		(20,131,958	)
	$	76,088,477		$	82,954,682

Schedule of Future Amortization Expense

Future amortization expense for the fiscal years ending June 30 are as follows:

2016 (remaining portion)	$	4,147,962
2017		8,266,924
2018		8,232,257
2019		8,200,924
2020		8,088,741
Thereafter		39,151,669
	$	76,088,477

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Notes Payable and Other Long-Term Debt (Tables)

6 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Schedule of Notes Payable and Other Long-Term Debt

Notes payable and other long-term debt consist of the following:

	December 31,			June 30,
	2015			2015
Long-term Credit Facility	$	3,001,570		$	37,707,686
Senior Secured Loan		20,962,940			23,218,575
Subordinated Secured Loan		25,000,000			25,000,000
Other notes payable		424,461			509,340
Total notes payable and other long-term debt		49,388,971			86,435,601
Less: Current portion		(1,537,628	)		(543,086	)
Total notes payable, net of current portion	$	47,851,343		$	85,892,515

Schedule of Maturities of Notes Payable and Other Long-Term Debt

Future maturities of notes payable and other long-term debt for the years ending June 30 are as follows:

2016 (remaining portion)	$	422,478
2017		2,266,155
2018		2,364,441
2019		5,372,711
2020		2,533,717
Thereafter		36,429,469
	$	49,388,971

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Fair Value Measurements (Tables)

6 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Schedule of Financial Liabilities Measured at Fair Value on Recurring Basis

The following table sets forth the Company’s financial liabilities measured at fair value on a recurring basis:

	Fair Value Measurements as of December 31, 2015
	Level 3		Total
Contingent consideration	$	6,755,000	$	6,755,000

	Fair Value Measurements as of June 30, 2015
	Level 3		Total
Contingent consideration	$	7,613,000	$	7,613,000

Fair Value Liabilities Measured on Recurring Basis Unobservable Input Reconciliation

The following table provides a reconciliation of the beginning and ending liabilities for the liabilities measured at fair value using significant unobservable inputs (Level 3):

	Contingent Consideration
Balance as of June 30, 2015	$	7,613,000
Increase related to accounting for acquisition		425,000
Contingent consideration paid		(1,469,233	)
Change in fair value		186,233
Balance as of December 31, 2015	$	6,755,000

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Provision for Income Taxes (Tables)

6 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense Benefit

	Three months ended December 31,					Six months ended December 31,
	2015			2014		2015			2014
Current income tax expense	$	244,441		$	611,252	$	912,935		$	1,758,376
Deferred income tax benefit		(1,871,674	)		5,239		(2,306,830	)		(239,959	)
Income tax expense (benefit)	$	(1,627,233	)	$	616,491	$	(1,393,895	)	$	1,518,417

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Share-Based Compensation (Tables)

6 Months Ended

Dec. 31, 2015

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Schedule of Share-Based Compensation Restricted Stock Activity

The following table summarizes stock award activity under the plan:

	Number of Shares			Weighted Average Grant- date Fair Value
Balance as of June 30, 2015		4,577		$	1.62
Vested		(3,113	)		1.62
Balance as of December 31, 2015		1,464		$	1.62

Schedule of Share-Based Payment Award Stock Options Valuation Assumptions

The fair value of each stock option grant is estimated as of the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions:

	Six Months Ended December31, 2015
Risk-Free Interest Rate	1.57 - 1.92%
Expected Term	6.5 years
Expected Volatility	46.60 - 53.49%
Expected Dividend Yield		0.00%

Schedule of Share-Based Compensation Stock Options Activity

The following table summarizes the activity under the plan:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)		Aggregate Intrinsic Value
Outstanding as of June 30, 2015		4,509,887		$	2.80		7.75	$	20,357,403
Granted		350,000			4.37		10.00		—
Exercised		(109,813	)		2.46		—		—
Forfeited		(232,452	)		3.19		—		—
Outstanding as of December 31, 2015		4,517,622		$	2.91		7.39	$	4,369,421
Exercisable as of December 31, 2015		1,542,416		$	1.62		5.34	$	2,843,265

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Contingencies (Tables)

6 Months Ended

Dec. 31, 2015

Commitments And Contingencies Disclosure [Abstract]

Schedule of Potential Earn-Out Payments

The following table represents the estimated undiscounted earn-out payments to be paid in each of the following fiscal years:

	2016(remaining)		2017		2018		2019		2020		Total
Earn-out payments (in thousands):
Cash	$	110	$	2,891	$	2,164	$	241	$	144	$	5,550
Equity		—		964		721		80		48		1,813
Total estimated earn-out payments (1)	$	110	$	3,855	$	2,885	$	321	$	192	$	7,363

(1) The Company generally has the right but not the obligation to satisfy a portion of the earn-out payments in stock.

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Operating and Geographic Segment Information (Tables)

6 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Reporting

The Company evaluates the performance of the segments primarily based on their respective revenues, net revenues and income from operations. Accordingly, capital expenditures and total assets are not reported in segment results. In addition, the Company has disclosed a corporate segment, which is not an operating segment and includes the costs of the Company’s executives, board of directors, professional services such as legal and consulting, amortization of intangible assets and certain other corporate costs associated with operating as a public company. Intercompany transactions have been eliminated in the condensed consolidated balance sheets and statements of operations.

Three months ended December 31, 2015 (in thousands)	United States		Canada			Corporate/ Eliminations			Total
Revenues	$	179,519	$	28,609		$	(1,177	)	$	206,951
Net revenues		42,568		5,028			—			47,596
Income (loss) from operations		4,229		1,058			(7,844	)		(2,557	)
Other income (expense)		266		(24	)		(1,310	)		(1,068	)
Income (loss) before income tax expense		4,495		1,034			(9,154	)		(3,625	)
Depreciation and amortization		719		182			2,218			3,119
Furniture and equipment, net		11,679		1,634			—			13,313
Goodwill		43,215		19,904			—			63,119
Three months ended December 31, 2014 (in thousands)
Revenues	$	105,948	$	—		$	—		$	105,948
Net revenues		27,592		—			—			27,592
Income from operations		2,486		—			(974	)		1,512
Other income (expense)		61		—			(96	)		(35	)
Income (loss) before income tax expense		2,547		—			(1,070	)		1,477
Depreciation and amortization		1,100		—			—			1,100
Furniture and equipment, net		2,458		—			—			2,458
Goodwill		29,467		—			—			29,467
Six months ended December 31, 2015 (in thousands)	United States		Canada			Corporate/ Eliminations			Total
Revenues	$	370,578	$	57,664		$	(2,639	)	$	425,603
Net revenues		88,452		9,857			—			98,309
Income (loss) from operations		11,550		(631	)		(11,823	)		(904	)
Other income (expense)		371		216			(2,720	)		(2,133	)
Income (loss) before income tax expense		11,921		(415	)		(14,543	)		(3,037	)
Depreciation and amortization		1,458		354			4,412			6,224
Furniture and equipment, net		11,679		1,634			—			13,313
Goodwill		43,215		19,904			—			63,119
Six months ended December 31, 2014 (in thousands)
Revenues	$	204,179	$	—		$	—		$	204,179
Net revenues		53,917		—			—			53,917
Income from operations		5,986		—			(2,066	)		3,920
Other income (expense)		188		—			(187	)		1
Income (loss) before income tax expense		6,174		—			(2,253	)		3,921
Depreciation and amortization		2,379		—			—			2,379
Furniture and equipment, net		2,458		—			—			2,458
Goodwill		29,467		—			—			29,467

Schedule of Segment Reporting Information, by Segment

The following data presents the Company’s revenue generated from shipments to and from the United States and all other countries, which is determined based upon the geographic location of a shipment’s initiation and destination points (in thousands):

	United States				Other Countries				Total
Three months ended December 31:	2015		2014		2015		2014		2015		2014
Revenue	$	118,197	$	62,246	$	88,754	$	43,702	$	206,951	$	105,948
Cost of transportation		95,794		42,747		63,561		35,609		159,355		78,356
Net revenue	$	22,403	$	19,499	$	25,193	$	8,093	$	47,596	$	27,592
	United States				Other Countries				Total
Six months ended December 31:	2015		2014		2015		2014		2015		2014
Revenue	$	243,563	$	123,106	$	182,040	$	81,073	$	425,603	$	204,179
Cost of transportation		189,644		84,946		137,650		65,316		327,294		150,262
Net revenue	$	53,919	$	38,160	$	44,390	$	15,757	$	98,309	$	53,917

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The Company and Basis of Presentation - Additional Information (Detail)	6 Months Ended
	Dec. 31, 2015 Location Company
Organization and Basis of Presentation [Line Items]
Number of operating locations | Location	150
Number of asset based transportation companies | Company	10,000
Radiant Global Logistics, Inc.
Organization and Basis of Presentation [Line Items]
Equity method investment, ownership percentage	40.00%
Radiant Capital Partners, LLC | Chief Executive Officer | Variable Interest Entity, Primary Beneficiary
Organization and Basis of Presentation [Line Items]
Equity method investment, ownership percentage	60.00%

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Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Jun. 30, 2015
Summary Of Significant Accounting Policies [Line Items]
Bank overdrafts	$ 7,344,905		$ 7,344,905		$ 3,137,103
loss on impairment of acquired intangible assets	3,679,825		$ 3,679,825
Description of impairment loss			As of December 31, 2015, the Company concluded it had a triggering event requiring assessment of customer related intangibles associated with the On Time Express, Inc. (“OTE”) acquisition due to a loss of customers. As a result, the Company reviewed the customer related intangibles and recorded an impairment loss of $3,679,825. The impairment was measured using future discounted cash flows using Level 3 inputs in the fair value hierarchy.
Rent expense	1,402,522	$ 451,662	$ 2,878,909	$ 975,278
Retention bonus expense			735,000
Defined contribution plan, contributions by employer	152,877	119,576	299,409	223,097
Share-based compensation expense	$ 368,097	$ 246,839	$ 758,196	$ 451,568
Dilutive common shares	48,732,762	36,184,653	48,054,100	36,005,995
Anti-dilutive securities excluded from computation of earnings per share, amount		946,536		980,627
Incremental common shares attributable to call options and warrants	4,519,086	5,356,821	4,519,086	5,356,821
Trademarks and Trade Names
Summary Of Significant Accounting Policies [Line Items]
Finite-lived intangible asset, useful life			15 years
Maximum | Customer-Related Intangible Assets
Summary Of Significant Accounting Policies [Line Items]
Finite-lived intangible asset, useful life			10 years
Furniture and Fixtures | Minimum
Summary Of Significant Accounting Policies [Line Items]
Property and equipment, useful life			3 years
Furniture and Fixtures | Maximum
Summary Of Significant Accounting Policies [Line Items]
Property and equipment, useful life			15 years
Computer Software
Summary Of Significant Accounting Policies [Line Items]
Property and equipment, useful life			3 years

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Summary of Significant Accounting Policies - Schedule of Minimum Future Lease Payments (Excluding Lease Termination Liability) under Non-Cancelable Operating Leases (Detail)	Dec. 31, 2015 USD ($)
Leases Operating [Abstract]
2016 (remaining portion)	$ 2,797,523
2017	4,953,643
2018	3,384,768
2019	2,640,941
2020	1,666,244
Thereafter	975,485
Total minimum lease payments	$ 16,418,604

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Summary of Significant Accounting Policies - Schedule of Transition and Lease Termination Liability (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Restructuring Cost And Reserve [Line Items]
Beginning Balance			$ 283,772
Lease termination and transition costs	$ 1,157,420	$ 395,086	4,319,648	$ 395,086
Payments and other			(2,236,547)
Ending Balance	2,366,873		2,366,873
Lease Termination Costs
Restructuring Cost And Reserve [Line Items]
Beginning Balance			255,272
Lease termination and transition costs			2,107,343
Payments and other			(744,779)
Ending Balance	1,617,836		1,617,836
Severance Costs
Restructuring Cost And Reserve [Line Items]
Beginning Balance			28,500
Lease termination and transition costs			834,666
Payments and other			(114,129)
Ending Balance	$ 749,037		749,037
Non-recurring Personnel Costs
Restructuring Cost And Reserve [Line Items]
Lease termination and transition costs			1,377,639
Payments and other			$ (1,377,639)

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Summary of Significant Accounting Policies - Reconciliation of Numerator and Denominator of Basic and Diluted Per Share Computations for Earnings Per Share (Detail) - shares	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Earnings Per Share [Abstract]
Weighted average basic shares outstanding	48,732,762	34,627,645	48,054,100	34,488,616
Dilutive effect of share-based awards		1,557,008		1,517,379
Weighted average dilutive shares outstanding	48,732,762	36,184,653	48,054,100	36,005,995

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Business Acquisitions - Additional Information (Detail) - USD ($)			6 Months Ended
	Jun. 08, 2015	Apr. 02, 2015	Dec. 31, 2015	Dec. 31, 2014	Jun. 01, 2015	Dec. 15, 2014	Sep. 01, 2014
Business Acquisition [Line Items]
Cash, net of cash acquired			$ 800,000	$ 3,506,250
Maximum earn-out payments			$ 20,510,000
Wheels
Business Acquisition [Line Items]
Business Acquisition Description Of Acquired Entity			On April 2, 2015, the Company acquired the outstanding stock of Wheels Group Inc. (“Wheels”).
Business acquisition			Wheels Group Inc.
Business acquisition, effective date of acquisition			Apr. 02, 2015
Cash, net of cash acquired		$ 26,900,000
Business acquisition, shares issued		6,900,000
SBA
Business Acquisition [Line Items]
Business Acquisition Description Of Acquired Entity			On June 8, 2015, the Company acquired the outstanding stock of Service by Air, Inc. (“SBA”), a privately-held New York corporation founded in 1976.
Business acquisition			Service by Air, Inc.
Business acquisition, effective date of acquisition			Jun. 08, 2015
Cash, net of cash acquired	$ 11,400,000
Business acquisition, approximate base purchase price	12,250,000
Liabilities incurred as part of consideration transferred	$ 850,000
Trans-Net, Inc.
Business Acquisition [Line Items]
Business Acquisition Description Of Acquired Entity			On September 1, 2014, through a wholly-owned subsidiary, the Company acquired the assets and operations of Trans-Net, Inc. (“TNI”), a privately-held company based in Issaquah, Washington.
Business acquisition			Trans-Net, Inc.
Business acquisition, effective date of acquisition			Sep. 01, 2015
Maximum earn-out payments							$ 0
Period of goodwill deductible for income tax			15 years
Trans-Net, Inc. | Maximum
Business Acquisition [Line Items]
Contingent consideration							$ 6,500,000
DCA
Business Acquisition [Line Items]
Business Acquisition Description Of Acquired Entity			On December 15, 2014, through a wholly-owned subsidiary, the Company acquired the assets and operations of Don Cameron & Associates, Inc. (“DCA”), a privately-held company based in Minneapolis, Minnesota.
Business acquisition			Don Cameron & Associates, Inc.
Business acquisition, effective date of acquisition			Dec. 15, 2014
Maximum earn-out payments						$ 0
Period of goodwill deductible for income tax			15 years
DCA | Maximum
Business Acquisition [Line Items]
Contingent consideration						$ 6,500,000
Highways
Business Acquisition [Line Items]
Business Acquisition Description Of Acquired Entity			Effective as of June 1, 2015, through a wholly-owned subsidiary, the company acquired the stock of Highways and Skyways, Inc. (“Highways”), a privately-held company based near Cincinnati, Ohio.
Business acquisition			Highways and Skyways, Inc.
Business acquisition, effective date of acquisition			Jun. 01, 2015
Maximum earn-out payments					$ 0
Period of goodwill deductible for income tax			15 years
Highways | Maximum
Business Acquisition [Line Items]
Contingent consideration					$ 6,500,000
Copper Logistics Incorporated
Business Acquisition [Line Items]
Period of goodwill deductible for income tax			15 years

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Furniture and Equipment - Schedule of Furniture and Equipment (Detail) - USD ($)	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Property Plant And Equipment [Line Items]
Furniture and equipment, gross	$ 18,219,314	$ 16,452,736
Less: Accumulated depreciation and amortization	(4,906,620)	(3,276,846)
Furniture and equipment, net	13,312,694	13,175,890	$ 2,458,000
Vehicles
Property Plant And Equipment [Line Items]
Furniture and equipment, gross	5,030,898	5,384,161
Communication equipment
Property Plant And Equipment [Line Items]
Furniture and equipment, gross	179,817	111,790
Office and warehouse equipment
Property Plant And Equipment [Line Items]
Furniture and equipment, gross	490,532	471,915
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Furniture and equipment, gross	598,126	585,820
Computer equipment
Property Plant And Equipment [Line Items]
Furniture and equipment, gross	1,613,426	1,364,648
Computer Software
Property Plant And Equipment [Line Items]
Furniture and equipment, gross	8,807,964	7,209,965
Leasehold improvements
Property Plant And Equipment [Line Items]
Furniture and equipment, gross	$ 1,498,551	$ 1,324,437

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Furniture and Equipment - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Property Plant And Equipment [Abstract]
depreciation and leasehold amortization	$ 901,025	$ 139,451	$ 1,811,473	$ 267,049

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Acquired Intangible Assets - Schedule of Acquired Intangible Assets (Detail) - USD ($)	6 Months Ended
	Dec. 31, 2015	Jun. 30, 2015
Finite Lived Intangible Assets [Line Items]
Acquired intangible assets	$ 100,632,815	$ 103,086,640
Acquired intangible assets, accumulated amortization	(24,544,338)	(20,131,958)
Total	76,088,477	82,954,682
Customer related
Finite Lived Intangible Assets [Line Items]
Acquired intangible assets	$ 85,823,815	88,287,640
Acquired intangible assets, weighted-average life	8 years 7 months 6 days
Trademarks and Trade Names
Finite Lived Intangible Assets [Line Items]
Acquired intangible assets	$ 14,069,000	14,069,000
Acquired intangible assets, weighted-average life	14 years 3 months 18 days
Covenants not to compete
Finite Lived Intangible Assets [Line Items]
Acquired intangible assets	$ 740,000	$ 730,000
Acquired intangible assets, weighted-average life	2 years 1 month 6 days

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Acquired Intangible Assets - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization of intangibles	$ 2,217,829	$ 960,262	$ 4,412,380	$ 2,111,745

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Acquired Intangible Assets - Schedule of Future Amortization Expense (Detail) - USD ($)	Dec. 31, 2015	Jun. 30, 2015
Goodwill And Intangible Assets Disclosure [Abstract]
2016 (remaining portion)	$ 4,147,962
2017	8,266,924
2018	8,232,257
2019	8,200,924
2020	8,088,741
Thereafter	39,151,669
Total	$ 76,088,477	$ 82,954,682

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Notes Payable and Other Long-Term Debt - Schedule of Notes Payable and Other Long-Term Debt (Detail) - USD ($)	Dec. 31, 2015	Jun. 30, 2015
Debt Disclosure [Abstract]
Long-term Credit Facility	$ 3,001,570	$ 37,707,686
Senior Secured Loan	20,962,940	23,218,575
Subordinated Secured Loan	25,000,000	25,000,000
Other notes payable	424,461	509,340
Total notes payable and other long-term debt	49,388,971	86,435,601
Less: Current portion	(1,537,628)	(543,086)
Total notes payable, net of current portion	$ 47,851,343	$ 85,892,515

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Notes Payable and Other Long-Term Debt - Schedule of Maturities of Notes Payable and Other Long-Term Debt (Detail) - USD ($)	Dec. 31, 2015	Jun. 30, 2015
Debt Disclosure [Abstract]
2016 (remaining portion)	$ 422,478
2017	2,266,155
2018	2,364,441
2019	5,372,711
2020	2,533,717
Thereafter	36,429,469
Total notes payable and other long-term debt	$ 49,388,971	$ 86,435,601

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Notes Payable and Other Long-Term Debt - Additional Information (Detail) CAD in Millions		6 Months Ended
	Apr. 02, 2015 USD ($)	Dec. 31, 2015 USD ($)	Apr. 02, 2015 CAD
Bank of America Credit Facility
Debt Instrument [Line Items]
Line of Credit Facility maximum borrowing capacity		$ 65,000,000
Line of Credit Facility interest rate description		Borrowings accrue interest based on the Company’s fixed charge coverage ratio at the Lender’s base rate plus 0.0% to 0.50% or LIBOR plus 1.50% to 2.25%.
Borrowing percentage based on eligible domestic accounts receivable		85.00%
Borrowing percentage based on eligible accrued but unbilled receivables and foreign accounts receivable		75.00%
Line of Credit Facility covenant terms		Borrowings are available to fund future acquisitions, capital expenditures, repurchase of Company stock or for other corporate purposes.
Letter of credit outstanding amount		$ 286,800
Line of Credit Facility remaining borrowing capacity		$ 46,917,000
Bank of America Credit Facility | Base Rate | Minimum
Debt Instrument [Line Items]
Marginal interest		0.00%
Bank of America Credit Facility | Base Rate | Maximum
Debt Instrument [Line Items]
Marginal interest		0.50%
Bank of America Credit Facility | LIBOR Plus Rate | Minimum
Debt Instrument [Line Items]
Marginal interest		1.50%
Bank of America Credit Facility | LIBOR Plus Rate | Maximum
Debt Instrument [Line Items]
Marginal interest		2.25%
Integrated Private Debt Fund IV LP
Debt Instrument [Line Items]
Debt instrument, maturity date	Apr. 01, 2024
Senior secured term loan | CAD			CAD 29.0
Debt instrument interest rate	6.65%		6.65%
Debt instrument payment description		The loan repayment consists of interest-only payments for the first 12 months followed by blended principal and interest payments for the next eight years. The loan may be prepaid in whole at any time upon providing at least 30 days prior written notice and paying the difference between (i) the present value of the loan interest and the principal payments foregone discounted at the Government of Canada Bond Yield for the term from the date of prepayment to April 1, 2024, and (ii) the face value of the principal amount being prepaid.
Interest only repayment period	12 months
Loan repayment period	8 years
Integrated Private Debt Fund IV LP | Minimum
Debt Instrument [Line Items]
Loan prepayment prior written notice period	30 days
Alcentra Capital Corporation and Triangle Capital Corporation
Debt Instrument [Line Items]
Debt instrument, maturity date	Apr. 02, 2021
Debt instrument interest rate	12.00%		12.00%
Interest only repayment period	6 months
Senior subordinated term loan	$ 25,000,000
Debt instrument interest rate terms		The loan matures on April 2, 2021 and accrues interest at a rate of 12% per annum during the first six months of the loan and then at a variable rate, ranging from LIBOR plus 950 basis points to LIBOR plus 1025 basis points (all with a 100 basis points LIBOR floor), depending on the Company’s total leverage ratio. Prior to April 2, 2016, the loan may not be prepaid. After this, prior to April 2, 2017, the loan may be prepaid by paying a prepayment premium equal to 3% of the amount prepaid. After April 2, 2017, the loan may be prepaid, in whole or in part, without penalty.
Debt prepayment premium percentage	3.00%
Alcentra Capital Corporation and Triangle Capital Corporation | LIBOR Plus Rate
Debt Instrument [Line Items]
Marginal interest	1.00%
Alcentra Capital Corporation and Triangle Capital Corporation | LIBOR Plus Rate | Minimum
Debt Instrument [Line Items]
Marginal interest	9.50%
Alcentra Capital Corporation and Triangle Capital Corporation | LIBOR Plus Rate | Maximum
Debt Instrument [Line Items]
Marginal interest	10.25%
Alcentra Capital Corporation
Debt Instrument [Line Items]
Senior subordinated term loan	$ 10,000,000
Triangle Capital Corporation
Debt Instrument [Line Items]
Senior subordinated term loan	$ 15,000,000
Letter of Credit | Bank of America Credit Facility
Debt Instrument [Line Items]
Line of Credit Facility maximum borrowing capacity		$ 2,000,000
Debt instrument, maturity date		Aug. 09, 2018

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Stockholders' Equity - Additional Information (Detail) - USD ($)		6 Months Ended
	Jul. 16, 2015	Dec. 31, 2015	Jun. 30, 2015
Class Of Stock [Line Items]
Preferred stock, shares authorized		5,000,000	5,000,000
Preferred stock, par value, per share		$ 0.001	$ 0.001
Common stock, shares authorized		100,000,000	100,000,000
Common stock, par value, per share		$ 0.001	$ 0.001
Preferred stock, shares outstanding		839,200	839,200
Cash dividend paid to holders		$ 1,022,775
Common Stock
Class Of Stock [Line Items]
Issuance of common stock, shares		6,133,334
Common Stock | Overallotment Option
Class Of Stock [Line Items]
Public offering date		Jul. 16, 2015
Issuance of common stock, shares	6,133,334
Proceeds from common stock, net of offering costs	$ 38,430,194
Common stock, underwriting discount	2,484,000
Common stock, offering costs	$ 485,810
Series A Preferred Stock
Class Of Stock [Line Items]
Preferred stock, shares outstanding		839,200
Preferred stock, dividend rate percentage		9.75%
Preferred stock, redemption terms		Commencing on December 20, 2018, the Company may redeem, at its option, the Series A Preferred Shares, in whole or in part, at a cash redemption price of $25.00 per share plus accrued and unpaid dividends (whether or not declared). Among other things, the Series A Preferred Shares have no stated maturity, are not subject to any sinking fund or other mandatory redemption, and are not convertible into or exchangeable for any of the Company’s other securities.
Redeemable preferred stock value per share		$ 25.00
Cash dividend per share to holders		$ 1.218750
Cash dividend paid to holders		$ 1,022,775
Series A Preferred Stock | Payment of dividend
Class Of Stock [Line Items]
Preferred stock, dividend payment terms		Dividends on the Series A Preferred Shares are cumulative from the date of original issue and are payable on January 31, April 30, July 31 and October 31, as and if declared by the Company’s Board of Directors. If the Company does not pay dividends in full on any two payment dates (whether consecutive or not), the per annum dividend rate will increase an additional 2.0% per annum per $25.00 stated liquidation preference, up to a maximum of 19.0% per annum.
Series A Preferred Stock | Payment of dividend | Minimum
Class Of Stock [Line Items]
Preferred stock, dividend rate percentage		2.00%
Series A Preferred Stock | Payment of dividend | Maximum
Class Of Stock [Line Items]
Preferred stock, dividend rate percentage		19.00%
Series A Preferred Stock | NYSE MKT listing
Class Of Stock [Line Items]
Preferred stock, dividend rate percentage		2.00%
Preferred stock, dividend payment terms		If the Company fails to maintain the listing of the Series A Preferred Shares on the NYSE MKT or other exchange for 30 days or more, the per annum dividend rate will increase by an additional 2.0% per annum so long as the listing failure continues.
Series A Preferred Stock | Fixed Charge Coverage Ratio
Class Of Stock [Line Items]
Preferred stock, dividend payment terms		The Series A Preferred Shares require the Company to maintain a Fixed Charge Coverage Ratio of at least 2.0. If the Company is not in compliance with this ratio, then it cannot pay any dividend on its common stock.
Series A Preferred Stock | Fixed Charge Coverage Ratio | Minimum
Class Of Stock [Line Items]
Preferred stock, fixed charge coverage ratio		200.00%

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Variable Interest Entity and Related Party Transactions - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Variable Interest Entity [Line Items]
Change in non-controlling interest	$ 18,699	$ 21,555	$ 33,813	$ 43,592
Radiant Logistics Partners, LLC
Variable Interest Entity [Line Items]
Variable interest entity, measure of activity, operating income or loss	31,166	35,925	$ 56,356	72,654
Radiant Global Logistics, Inc.
Variable Interest Entity [Line Items]
Equity method investment, ownership percentage			40.00%
Radiant Capital Partners, LLC
Variable Interest Entity [Line Items]
Change in non-controlling interest	$ 18,699	$ 21,555	$ 33,813	$ 43,592
Radiant Capital Partners, LLC | Chief Executive Officer | Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Equity method investment, ownership percentage			60.00%

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Fair Value Measurements - Schedule of Financial Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($)	Dec. 31, 2015	Jun. 30, 2015
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Contingent consideration	$ 6,755,000	$ 7,613,000
Level 3 | Contingent consideration
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Contingent consideration	$ 6,755,000	$ 7,613,000

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Fair Value Measurements - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Fair Value Disclosures [Abstract]
Change in contingent consideration	$ 598,233	$ (170,796)	$ 186,233	$ (720,796)
Maximum earn-out payments	20,510,000		20,510,000
Contingent consideration threshold based on net advances earn-out payments	$ 800,000		$ 800,000

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Fair Value Measurements - Fair Value Liabilities Measured on Recurring Basis Unobservable Input Reconciliation (Detail) - Contingent consideration	6 Months Ended
	Dec. 31, 2015 USD ($)
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Balance, Beginning	$ 7,613,000
Increase related to accounting for acquisition	425,000
Contingent consideration paid	(1,469,233)
Change in fair value	186,233
Balance, Ending	$ 6,755,000

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Provision for Income Taxes - Schedule of Components of Income Tax Expense Benefit (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Current income tax expense	$ 244,441	$ 611,252	$ 912,935	$ 1,758,376
Deferred income tax benefit	(1,871,674)	5,239	(2,306,830)	(239,959)
Income tax expense (benefit)	$ (1,627,233)	$ 616,491	$ (1,393,895)	$ 1,518,417

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Provision for Income Taxes - Additional Information (Detail)	6 Months Ended
	Dec. 31, 2015
Federal Authorities
Components Of Income Tax Expense Benefit [Line Items]
Tax years which remain subject to examination	June 30, 2012 through June 30, 2015.
State Authorities
Components Of Income Tax Expense Benefit [Line Items]
Tax years which remain subject to examination	June 30, 2011 through June 30, 2015

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Share-Based Compensation - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense	$ 368,097	$ 246,839	$ 758,196	$ 451,568
Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares transferability term			5 years
Share-based compensation arrangement by share-based payment award, award vesting period			5 years
Share-based compensation expense	929	1,261	$ 2,190	2,522
Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation expense	367,168	245,578	756,006	449,046
Aggregate intrinsic value of options exercised	$ 46,127	$ 102,825	$ 326,573	$ 1,378,148
Weighted average fair value per share			$ 2.28

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Share-Based Compensation - Schedule of Share Based Compensation Restricted Stock Activity (Detail)	6 Months Ended
	Dec. 31, 2015 $ / shares shares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Number of Shares, Beginning Balance | shares	4,577
Number of Shares, Vested | shares	(3,113)
Number of Shares, Ending Balance | shares	1,464
Weighted Average Grant-date Fair Value, Beginning Balance | $ / shares	$ 1.62
Weighted Average Grant-date Fair Value, Vested | $ / shares	1.62
Weighted Average Grant-date Fair Value, Ending Balance | $ / shares	$ 1.62

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Share-Based Compensation - Schedule of Share Based Payment Award Stock Options Valuation Assumptions (Detail)	6 Months Ended
	Dec. 31, 2015
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Risk-Free Interest Rate, Minimum	1.57%
Risk-Free Interest Rate, Maximum	1.92%
Expected Term	6 years 6 months
Expected Volatility, Minimum	46.60%
Expected Volatility, Maximum	53.49%
Expected Dividend Yield	0.00%

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Share-Based Compensation - Schedule of Share Based Compensation Stock Options Activity (Detail) - USD ($)	6 Months Ended	12 Months Ended
	Dec. 31, 2015	Jun. 30, 2015
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward
Number of Shares, Outstanding, Beginning Balance	4,509,887
Number of Shares, Granted	350,000
Number of Shares, Exercised	(109,813)
Number of Shares, Forfeited	(232,452)
Number of Shares, Outstanding, Ending Balance	4,517,622	4,509,887
Number of Shares, Exercisable, Ending Balance	1,542,416
Weighted Average Exercise Price, Outstanding, Beginning Balance	$ 2.80
Weighted Average Exercise Price, Granted	4.37
Weighted Average Exercise Price, Exercised	2.46
Weighted Average Exercise Price, Forfeited	3.19
Weighted Average Exercise Price, Outstanding, Ending Balance	2.91	$ 2.80
Weighted Average Exercise Price, Exercisable, Ending Balance	$ 1.62
Weighted Average Remaining Contractual Life - Years	7 years 4 months 21 days	7 years 9 months
Weighted Average Remaining Contractual Life - Years, Granted	10 years
Weighted Average Remaining Contractual Life - Years, Exercisable Ending Balance	5 years 4 months 2 days
Aggregate Intrinsic Value, Outstanding Beginning Balance	$ 20,357,403
Aggregate Intrinsic Value, Outstanding Ending Balance	4,369,421	$ 20,357,403
Aggregate Intrinsic Value, Exercisable Ending Balance	$ 2,843,265

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Contingencies - Additional Information (Detail)	1 Months Ended		6 Months Ended
	Jun. 30, 2013 USD ($)	Aug. 31, 2011 ArmoredVehicle	Dec. 31, 2015 USD ($)	Apr. 25, 2014 USD ($)	Apr. 10, 2011 USD ($)
Loss Contingencies [Line Items]
Amount sought by Radiant Logistics in counterclaim			$ 1,000,000
Amount awarded to Radiant Logistics				$ 1,500,000
Insurance claims on loss contingency					$ 1,000,000
Earn-out payments terms			Earn-out payments are generally due annually on November 1, and 90 days following the quarter of the final earn-out period for each respective acquisition.
Number of days earn-out payments due following the quarter of the final earn-out period			90 days
High Protection Company
Loss Contingencies [Line Items]
Number of armored vehicles | ArmoredVehicle		5
High Protection Company | Armored Vehicles
Loss Contingencies [Line Items]
Amount sought by Radiant Logistics in counterclaim	$ 1,000,000
Contract amount for manufacturing and delivery of vehicles					$ 716,000
Transition and lease termination costs	716,000
Demurrage and storage charges	$ 200,000

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Contingencies - Schedule of Potential Earn-Out Payments (Detail) $ in Thousands	Dec. 31, 2015 USD ($)
Earn Out Payments Payable [Line Items]
2016 (remaining)	$ 110
2017	3,855
2018	2,885
2019	321
2020	192
Total	7,363
Cash
Earn Out Payments Payable [Line Items]
2016 (remaining)	110
2017	2,891
2018	2,164
2019	241
2020	144
Total	5,550
Equity
Earn Out Payments Payable [Line Items]
2017	964
2018	721
2019	80
2020	48
Total	$ 1,813

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Operating and Geographic Segment Information - Additional Information (Detail)	6 Months Ended
	Dec. 31, 2015 Segment
Segment Reporting [Abstract]
Number of geographic operating segments	2

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Operating and Geographic Segment Information - Segment Reporting (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Jun. 30, 2015
Segment Reporting Information [Line Items]
Revenues	$ 206,951,043	$ 105,948,104	$ 425,603,615	$ 204,179,492
Net revenues	47,596,217	27,592,373	98,309,322	53,917,156
Income (loss) from operations	(2,556,979)	1,511,762	(903,509)	3,920,101
Other income (expense)	(1,067,622)	(34,977)	(2,133,744)	1,311
Income (loss) before income tax expense	(3,624,601)	1,476,785	(3,037,253)	3,921,412
Depreciation and amortization	3,118,854	1,099,713	6,223,853	2,378,794
Furniture and equipment, net	13,312,694	2,458,000	13,312,694	2,458,000	$ 13,175,890
Goodwill	63,119,472	29,467,000	63,119,472	29,467,000	$ 63,089,222
United States
Segment Reporting Information [Line Items]
Revenues	118,197,000	62,246,000	243,563,000	123,106,000
Net revenues	22,403,000	19,499,000	53,919,000	38,160,000
Operating Segments | United States
Segment Reporting Information [Line Items]
Revenues	179,519,000	105,948	370,578,000	204,179,000
Net revenues	42,568,000	27,592	88,452,000	53,917,000
Income (loss) from operations	4,229,000	2,486,000	11,550,000	5,986,000
Other income (expense)	266,000	61,000	371,000	188,000
Income (loss) before income tax expense	4,495,000	2,547,000	11,921,000	6,174,000
Depreciation and amortization	719,000	1,100,000	1,458,000	2,379,000
Furniture and equipment, net	11,679,000	2,458,000	11,679,000	2,458,000
Goodwill	43,215,000	29,467,000	43,215,000	29,467,000
Operating Segments | Canada
Segment Reporting Information [Line Items]
Revenues	28,609,000		57,664,000
Net revenues	5,028,000		9,857,000
Income (loss) from operations	1,058,000		(631,000)
Other income (expense)	(24,000)		216,000
Income (loss) before income tax expense	1,034,000		(415,000)
Depreciation and amortization	182,000		354,000
Furniture and equipment, net	1,634,000		1,634,000
Goodwill	19,904,000		19,904,000
Corporate/Eliminations
Segment Reporting Information [Line Items]
Revenues	(1,177,000)		(2,639,000)
Income (loss) from operations	(7,844,000)	(974,000)	(11,823,000)	(2,066,000)
Other income (expense)	(1,310,000)	(96,000)	(2,720,000)	(187,000)
Income (loss) before income tax expense	(9,154,000)	$ (1,070,000)	(14,543,000)	$ (2,253,000)
Depreciation and amortization	$ 2,218,000		$ 4,412,000

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Operating and Geographic Segment Information - Schedule of Segment Reporting Information, by Segment (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Segment Reporting Information [Line Items]
Revenue	$ 206,951,043	$ 105,948,104	$ 425,603,615	$ 204,179,492
Cost of transportation	159,354,826	78,355,731	327,294,293	150,262,336
Net revenues	47,596,217	27,592,373	98,309,322	53,917,156
United States
Segment Reporting Information [Line Items]
Revenue	118,197,000	62,246,000	243,563,000	123,106,000
Cost of transportation	95,794,000	42,747,000	189,644,000	84,946,000
Net revenues	22,403,000	19,499,000	53,919,000	38,160,000
Other Countries
Segment Reporting Information [Line Items]
Revenue	88,754,000	43,702,000	182,040,000	81,073,000
Cost of transportation	63,561,000	35,609,000	137,650,000	65,316,000
Net revenues	$ 25,193,000	$ 8,093,000	$ 44,390,000	$ 15,757,000

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Subsequent Event - Additional Information (Detail) - USD ($)				6 Months Ended
	Feb. 01, 2016	Jan. 22, 2016	Jan. 07, 2016	Dec. 31, 2015
Subsequent Event [Line Items]
Cash dividend paid to holders				$ 1,022,775
Series A Preferred Stock
Subsequent Event [Line Items]
Cash dividend per share to holders				$ 1.218750
Cash dividend paid to holders				$ 1,022,775
Subsequent Event | Common Stock
Subsequent Event [Line Items]
Stock repurchase program commencement date		Jan. 07, 2016
Shares authorized to repurchase under the stock repurchase program			5,000,000
Stock repurchase program expiration date			Dec. 31, 2016
Subsequent Event | Series A Preferred Stock
Subsequent Event [Line Items]
Dividends declared date		Jan. 22, 2016
Cash dividend per share to holders		$ 0.609375
Cash dividend paid to holders		$ 511,388
Dividend payment date	Feb. 01, 2016