SUBSEQUENT EVENTS

12 Months Ended

Jun. 30, 2013

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

17. SUBSEQUENT EVENTS

CONCENTRATION OF CREDIT RISK

During August 2013, at the request of a customer, we ceased providing ePort Connect services for 10,890 ePort devices which the customer had previously purchased from us. We believe that the customer made such a request as a result of the customer developing its own product and service. We continue to provide ePort Connect services to this customer for additional ePort devices that were previously purchased from us by the customer. The license and transaction fees attributable to these continuing connections would have represented approximately 6% to 7% of our license and transaction fee revenues during fiscal year 2013. As a result of our anticipated growth in connections during fiscal year 2014, we do not believe that these deactivations will have a material adverse effect on our business. The customer represented 11%, 18% and 25% of our license and transaction fee revenues during fiscal years 2013, 2012 and 2011, respectively.

LINE OF CREDIT

In September 2013, the Company and the Bank entered into a Fifth Amendment (“Fifth Amendment”) to the Loan and Security Agreement to change the definition of Adjusted EBITDA for covenant calculations for the four fiscal quarters ending through June 30, 2014.

COMMON STOCK WARRANTS

On September 14, 2013 warrants to purchase 903,955 shares of Common Stock, exercisable at $5.90 per share expired unexercised. The warrants had been issued in connection with a Securities Purchase Agreement with SAC entered into by the Company on March 14, 2007 (see Note 13).