Overview of the Business and Basis of Presentation (Tables)

3 Months Ended

Sep. 30, 2019

Overview of the Business and Basis of Presentation

Schedule of weighted average number of shares

The following table presents a reconciliation of the numerators and denominators of basic and diluted net income per share for the periods indicated:

	Three Months Ended
	September 30,
	2019	2018
Basic weighted average number of shares outstanding	8,756,156	9,105,527
Effect of dilutive securities:
Restricted stock	53,416	—
Diluted weighted average number of shares outstanding	8,809,572	9,105,527

Schedule of financial assets and liabilities that were measured at fair value on a recurring basis

	As of		Quoted
	September 30,		Prices in		Observable		Unobservable
	2019		Active Markets		Inputs		Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
	(Amounts in thousands)
Cash	$	3,697	$	3,697	$	—	$	—
Money market funds		5,070		5,070		—		—
Cash and cash equivalents	$	8,767	$	8,767	$	—	$	—
Common stock	$	4,108	$	4,108	$	—	$	—
Preferred stock		2,883		—		—		2,883
Equity investments	$	6,991	$	4,108	$	—	$	2,883
Corporate debt		22,785		—		22,785		—
Available-for-sale investments	$	22,785	$	—	$	22,785	$	—
Contingent consideration - cash earn-out	$	2,990	$	—	$	—	$	2,990
Contingent consideration - warrants		110		—		—		110
Liabilities	$	3,100	$	—	$	—	$	3,100

	As of		Quoted
	June 30,		Prices in		Observable		Unobservable
	2019		Active Markets		Inputs		Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
	(Amounts in thousands)
Cash	$	5,223	$	5,223	$	—	$	—
Money market funds		2,860		2,860		—		—
Cash and cash equivalents	$	8,083	$	8,083	$	—	$	—
Common stock warrants	$	1	$	1	$	—	$	—
Common stock		4,521		4,521		—		—
Preferred stock		2,883		—		—		2,883
Equity investments	$	7,405	$	4,522	$	—	$	2,883
Corporate debt	$	20,393	$	—	$	20,393	$	—
Available-for-sale investments	$	20,393	$	—	$	20,393	$	—
Contingent consideration - cash earn-out	$	2,890	$	—	$	—	$	2,890
Contingent consideration - warrants		200		—		—		200
Liabilities	$	3,090	$	—	$	—	$	3,090

Schedule of the Company's assets and obligations measured at fair value using Level 3 inputs

The following table provides a reconciliation of the beginning and ending balances for the Company’s assets and obligations measured at fair value using Level 3 inputs:

	Assets		Obligations
	Preferred		Contingent
	Stock		Consideration
	(Amounts in thousands)
Balance at June 30, 2019	$	2,883	$	3,090
Fair value adjustment to contingent consideration		—		10
Balance at September 30, 2019	$	2,883	$	3,100

Schedule of valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a recurring basis

The following table shows the valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a recurring basis as of September 30, 2019:

	Fair Value		Valuation Methodology	Unobservable Inputs	Range of Inputs
	(Amounts in thousands)
Equity securities, fair value
Preferred stock	$	2,883	cost, or observable price changes	not applicable	not applicable
Contingent consideration
Contingent cash payments	$	2,990	Monte Carlo simulations	discount rate	12.0	%
				expected volatility	25.0	%
				drift rate	1.6	%
				credit spread	8.0	%
Contingent warrants	$	110	Black-Scholes, Monte Carlo simulations	expected term	5.62	years
				expected volatility	25.0	%
				risk free rate	1.6	%
				dividend yield	—	%

The following table shows the valuation methodology and unobservable inputs for Level 3 assets and liabilities measured at fair value on a recurring basis as of June 30, 2019:

	Fair Value		Valuation Methodology	Unobservable Inputs	Range of Inputs
	(Amounts in thousands)
Equity securities, fair value
Preferred stock	$	2,883	cost, or observable price changes	not applicable	not applicable
Contingent consideration
Contingent cash payments	$	2,890	Monte Carlo simulations	discount rate	12.0	%
				expected volatility	25.0	%
				drift rate	1.7	%
				credit spread	8.0	%
Contingent warrants	$	200	Black-Scholes, Monte Carlo simulations	expected term	6.25	years
				expected volatility	30.0	%
				risk free rate	2.6	%
				dividend yield	—	%