Provision for franchisee rescissions and refunds

12 Months Ended

Jun. 30, 2019

Provision For Franchisee Rescissions Current [Abstract]

Provision for franchisee rescissions and refunds

7. Provision for franchisee rescissions and refunds

In certain instances, franchise owners may elect to amend or terminate their franchise relationship. Termination may include the cessation of operating installed kiosks. If appropriate, the Company will enter into a rescission agreement with such franchise owners. These agreements states the terms and conditions for refunding amounts paid to the Company. This liability is increased by refund requests and is decreased by the payment of refunds to franchise owners. Most of the refund requests incurred by the Company to date are the result of production delays experienced by the Company.

The balances of this liability are $7,856,340 and $1,924,121 as of June 30, 2019 and 2018, respectively.