Balance sheet information

12 Months Ended

Jun. 30, 2020

Balance Sheet Related Disclosures [Abstract]

Cloud computing arrangements

On July 1, 2019, we adopted ASU 2018-15 which requires that we account for certain cloud-based software hosting arrangements as service contracts. Costs incurred for these arrangements are capitalized for application development activities, if material, and immediately expensed for preliminary project activities and post-implementation activities. We amortize the capitalized development costs on a straight-line basis over the fixed, non-cancellable term of the associated hosting arrangement plus any reasonably certain renewal periods. The capitalized costs are included in Prepaid expenses and other current assets and Other assets on our consolidated balance sheets. Capitalized costs and accumulated amortization were $759,000 and $73,000 at June 30, 2020, respectively.

Property and equipment, net

Property and equipment consist of the following (in thousands):



	June 30,
	2020			2019
Computers and equipment	$	7,265		$	8,185
Computer software	3,494			2,866
Furniture and fixtures	2,160			2,041
Automobiles	997			815
Leasehold improvements	5,866			5,890
	19,782			19,797
Less accumulated depreciation and amortization	(15,463		)	(14,214		)
Property and equipment, net	$	4,319		$	5,583

Depreciation and amortization expense related to property and equipment was $3.0 million, $2.7 million and $2.3 million for fiscal 2020, 2019 and 2018, respectively.

Goodwill and intangible assets, net

Intangible assets consist of the following (in thousands):



	June 30,
	2020			2019
Acquired developed technology	$	6,775		$	13,875
Less accumulated amortization	(6,775		)	(12,494		)
Intangible assets, net	$	—		$	1,381

In connection with the sale of intellectual property and workforce to Grab in January 2020, we offset the remaining net intangible assets balance of $945,000 associated with the OpenTerra Platform against the consideration received. See Note 12.

Acquired developed technology is amortized on a straight-line basis over the expected useful life. Amortization expense related to intangibles was $436,000, $1.0 million and $1.1 million for fiscal 2020, 2019 and 2018, respectively. As of June 30, 2020, intangible assets were fully amortized.

Goodwill by reportable segment as of June 30, 2020 and 2019 was as follows (in thousands):



	June 30, 2019		Allocated to Sale of Assets			Impairment		June 30, 2020
Automotive	$	14,320	$	(65	)	$	—	$	14,255

We allocated $65,000 of goodwill to the intellectual property and workforce sold to Grab in January 2020.

Goodwill impairment

We reported results in three business segments through June 30, 2019, prior to the sale of our Ads business in August 2019. During fiscal 2019, we recognized a $2.6 million impairment of the goodwill associated with our advertising segment, which amount is reported as discontinued operations in our consolidated statements of operations (see Note 1).

Other assets

Other assets consisted of the following (in thousands):



	June 30,
	2020		2019
Deposits and other assets	$	1,225	$	956
Non-marketable equity investments	6,670		458
Warrant to purchase non-marketable equity investment units	713		—
Non-marketable equity investments accounted for under the equity method	20,027		—
Non-marketable debt investments	5,917		—
Total other assets	$	34,552	$	1,414

Accrued expenses

Accrued expenses consist of the following (in thousands):



	June 30,
	2020		2019
Accrued compensation and benefits	$	15,117	$	13,288
Accrued royalties	9,701		21,604
Customer overpayments and related reserves	2,666		4,291
Other accrued expenses	8,726		9,716
	$	36,210	$	48,899

The overpayment from customers and related reserves will either be refunded or be applied to future amounts owed to us.