Immaterial Restatement of Previously Issued Financial Statements and Reclassification

9 Months Ended

Mar. 31, 2016

Accounting Changes and Error Corrections [Abstract]

Immaterial Restatement of Previously Issued Financial Statements and Reclassification

Subsequent to the issuance of our fiscal year 2015 consolidated financial statements, we identified an error relating to the grant of 120,000 restricted stock awards (“RSAs”) to our president and chief executive officer (“CEO”) upon his commencement of employment in November 2014 (see Note 18 – Commitments and Contingencies – Shareholder Demand Letter). Because the grant was determined to be non-compliant under the terms of the 2011 Stock Incentive Plan (the “Plan”) under which it was granted, in October 2015, the grant was retroactively rescinded. As a result of this error, stock compensation expense was overstated by $249 ($156 net of the related income tax effect of $93) and $44 of related accrued dividends were overstated for the year ended June 30, 2015. The accompanying condensed consolidated balance sheet as of June 30, 2015 has been corrected for the effect of this error. Additionally, since the grant occurred in the second quarter of the year ended June 30, 2015, the effects of this error correction on the interim periods commencing with the three months ended December 31, 2014 are reflected below. We have evaluated the effects of this misstatement for the year ended June 30, 2015, and the previously presented interim periods, and concluded that these periods are not materially misstated.

The impact of this misstatement on our previously issued condensed consolidated balance sheet as of June 30, 2015 is presented below:

	Consolidated Balance Sheet as of June 30, 2015
	As Previously Reported		Adjustments		As Restated

Deferred income taxes, net	$	12,711	$	(93)	$	12,618
Total assets	$	57,873	$	(93)	$	57,780

Accounts payable and accrued expenses	$	6,342	$	(22)	$	6,320
Total current liabilities	$	14,704	$	(22)	$	14,682
Other long-term liabilities	$	1,716	$	(22)	$	1,694
Total liabilities	$	21,267	$	(44)	$	21,223

Capital in excess of par value	$	210,456	$	(249)	$	210,207
Accumulated deficit	$	(173,795)	$	200	$	(173,595)
Total stockholders' equity	$	36,606	$	(49)	$	36,557
Total liabilities and stockholders' equity	$	57,873	$	(93)	$	57,780

The impacts of this misstatement on our previously issued unaudited condensed consolidated statements of operations for the three and nine months ended March 31, 2015 are presented below:

	Consolidated Statement of Operations for the Three Months Ended March 31, 2015
	As Previously Reported		Adjustments		As Restated

General and administrative	$	1,729	$	(101)	$	1,628
Total operating expenses	$	8,623	$	(101)	$	8,522
Operating income (loss)	$	1,462	$	101	$	1,563
Income (loss) before income taxes	$	1,463	$	101	$	1,564
Provision (benefit) for income taxes	$	679	$	37	$	716
Net income (loss)	$	784	$	64	$	848

	Consolidated Statement of Operations for the Nine Months Ended March 31, 2015
	As Previously Reported		Adjustments		As Restated

General and administrative	$	6,173	$	(146)	$	6,027
Total operating expenses	$	26,887	$	(146)	$	26,741
Operating income (loss)	$	1,703	$	146	$	1,849
Income (loss) before income taxes	$	1,333	$	146	$	1,479
Provision (benefit) for income taxes	$	733	$	54	$	787
Net income (loss)	$	600	$	92	$	692

The impacts of this misstatement on our previously issued unaudited condensed consolidated statements of comprehensive income (loss) for the three and nine months ended March 31, 2015 are presented below:

	Consolidated Statement of Comprehensive Income (Loss) for the Three Months Ended March 31, 2015
	As Previously Reported		Adjustments		As Restated

Net income (loss)	$	784	$	64	$	848
Comprehensive income (loss)	$	1,004	$	64	$	1,068

	Consolidated Statements of Comprehensive Income (Loss) for the Nine Months Ended March 31, 2015
	As Previously Reported		Adjustments		As Restated

Net income (loss)	$	600	$	92	$	692
Comprehensive income (loss)	$	941	$	92	$	1,033

The impact of this misstatement on our previously issued unaudited condensed consolidated statement of cash flows for the nine months ended March 31, 2015 is presented below:

	Consolidated Statement of Cash Flows for the Nine Months Ended March 31, 2015
	As Previously Reported		Adjustments		As Restated

Net income	$	600	$	92	$	692
Share-based compensation	$	643	$	(146)	$	497
Deferred income taxes, net	$	270	$	54	$	324
Net cash provided by (used in) operating activities	$	3,485	$	-	$	3,485

The accompanying notes to the condensed consolidated financial statements have been corrected to give effect to the above items.

Reclassification

Certain prior year amounts in the consolidated financial statements have been reclassified to conform to the current year presentation. Specifically, we have reclassified our intangible assets, net with a balance of $323 into other long-term assets, net in our consolidated balance sheet as of June 30, 2015. Intangible assets at March 31, 2016 includes an internet domain name (www.concurrent.com) acquired during the nine months ended March 31, 2016 for $35. The domain name is considered an indefinite-lived intangible asset and is not amortizable.

Additionally, amortization expense related to finite-lived intangible assets was $42 and $137 for the nine months ended March 31, 2016 and 2015, respectively.