INVENTORY	9 Months Ended
Mar. 31, 2018
INVENTORY
INVENTORY	6. INVENTORY Inventory, net of reserves, was $11.0 million and $4.6 million as of March 31, 2018 and June 30, 2017, respectively. Inventory consists of finished goods. The Company's inventories are valued at the lower of cost or net realizable value. The Company establishes allowances for obsolescence of inventory based upon quality considerations and assumptions about future demand and market conditions. The fair value of Cantaloupe inventories acquired included a fair market value step-up of $23 thousand. In the nine months ended March 31, 2018, the Company recognized the $23 thousand fair market value step-up as a component of cost of equipment, as the inventory acquired was sold to the Company’s customers.

INVENTORY

9 Months Ended

Mar. 31, 2018

6. INVENTORY

Inventory, net of reserves, was $11.0 million and $4.6 million as of March 31, 2018 and June 30, 2017, respectively. Inventory consists of finished goods. The Company's inventories are valued at the lower of cost or net realizable value.

The Company establishes allowances for obsolescence of inventory based upon quality considerations and assumptions about future demand and market conditions.

The fair value of Cantaloupe inventories acquired included a fair market value step-up of $23 thousand. In the nine months ended March 31, 2018, the Company recognized the $23 thousand fair market value step-up as a component of cost of equipment, as the inventory acquired was sold to the Company’s customers.