Overview of the Business and Basis of Presentation (Tables)

12 Months Ended

Jun. 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:

	Fiscal Year Ended June 30,
	2019	2018
Basic weighted average number of shares outstanding	8,941,413	9,469,331
Effect of dilutive securities:
Restricted stock	17,049	—
Diluted weighted average number of shares outstanding	8,958,462	9,469,331

Fair Value, Assets Measured on Recurring Basis

Our financial assets and liabilities that were measured at fair value on a recurring basis as of June 30, 2019 and 2018 are as follows:

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

			Quoted
	As of		Prices in		Observable		Unobservable
	June 30, 2018		Active Markets		Inputs		Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
	(Amounts in thousands)
Cash	$	3,777	$	3,777	$	—	$	—
Money market funds and repos		28,215		28,215		—		—
Commercial paper		1,000		—		1,000		—
Cash and cash equivalents	$	32,992	$	31,992	$	1,000	$	—
Common stock warrants	$	283	$	283	$	—	$	—
Common stock		5,537		5,537		—		—
Mutual funds		809		809		—		—
Equity investments	$	6,629	$	6,629	$	—	$	—
Commercial paper	$	3,294	$	—	$	3,294	$	—
Corporate debt		10,087		—		10,087		—
Available-for-sale investments	$	13,381	$	—	$	13,381	$	—

Fair Value Assets And liabilities Measured On Recurring Basis Unobservable Input Reconciliation

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, 2018	$	—	$	—
Purchase of preferred stock		2,883		—
Contingent consideration issued for the purchase of Old LuxeMark		—		2,360
Fair value adjustment to contingent consideration		—		730
Balance at June 30, 2019	$	2,883	$	3,090

Fair Value, Liabilities Measured on 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:

				Unobservable	Range of
	Fair Value		Valuation Methodology	Inputs	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	12.00	%
				expected volatility	25.00	%
				drift rate	1.70	%
				credit spread	8.00	%
Contingent warrants	$	200	Black-Scholes, Monte Carlo simulations	expected term	6.25	years
				expected volatility	30.0	%
				risk free rate	2.6	%
				dividend yield	0.0	%