0001474439-20-000039 | 10-Q | XBRL Viewer

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Cover Page	3 Months Ended
Cover Page	Sep. 30, 2020 shares
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
Document Transition Report	false
Entity File Number	001-34720
Entity Registrant Name	TELENAV, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	77-0521800
Entity Address, Address Line One	4655 Great America Parkway, Suite 300
Entity Address, City or Town	Santa Clara
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95054
City Area Code	408
Local Phone Number	245-3800
Title of 12(b) Security	Common stock, $0.001 Par Value per Share
Trading Symbol	TNAV
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	47,522,790
Entity Central Index Key	0001474439
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Amendment Flag	false

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020
Current assets:
Cash and cash equivalents	$ 28,313	$ 20,518
Short-term investments	70,505	90,315
Accounts receivable, net of allowances of $7 and $5 at September 30, 2020 and June 30, 2020, respectively	47,371	34,542
Restricted cash	2,059	1,494
Deferred costs	25,881	26,121
Prepaid expenses and other current assets	4,839	4,505
Total current assets	178,968	177,495
Property and equipment, net	3,689	4,319
Operating lease right-of-use assets	6,363	7,067
Deferred income taxes, non-current	1,318	1,515
Goodwill	14,255	14,255
Deferred costs, non-current	50,160	54,548
Other assets	41,192	34,552
Total assets	295,945	293,751
Current liabilities:
Trade accounts payable	19,728	12,291
Accrued expenses	31,833	36,210
Operating lease liabilities	2,824	2,786
Deferred revenue	37,876	37,973
Income taxes payable	223	715
Total current liabilities	92,484	89,975
Operating lease liabilities, non-current	4,654	5,191
Deferred revenue, non-current	95,654	100,970
Other long-term liabilities	664	645
Commitments and contingencies	0	0
Stockholders’ equity:
Preferred stock, $0.001 par value: 50,000 shares authorized; no shares issued or outstanding	0	0
Common stock, $0.001 par value: 600,000 shares authorized; 47,523 and 47,342 shares issued and outstanding at September 30, 2020 and June 30, 2020, respectively	47	47
Additional paid-in capital	194,912	192,170
Accumulated other comprehensive loss	(432)	(477)
Accumulated deficit	(92,038)	(94,770)
Total stockholders’ equity	102,489	96,970
Total liabilities and stockholders’ equity	$ 295,945	$ 293,751

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020
Statement of Financial Position [Abstract]
Accounts receivable, allowances	$ 7	$ 5
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	600,000,000	600,000,000
Common stock, shares issued (in shares)	47,523,000	47,342,000
Common stock, shares outstanding (in shares)	47,523,000	47,342,000

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Revenue:
Total revenue	$ 69,596,000	$ 66,629,000
Cost of revenue:
Total cost of revenue	40,083,000	36,851,000
Gross profit	29,513,000	29,778,000
Operating expenses:
Research and development	18,986,000	20,663,000
Sales and marketing	1,996,000	1,946,000
General and administrative	6,512,000	7,287,000
Total operating expenses	27,494,000	29,896,000
Income (loss) from operations	2,019,000	(118,000)
Other income, net	714,000	561,000
Income from continuing operations before provision for income taxes	2,733,000	443,000
Provision for income taxes	14,000	411,000
Equity in net (income) of equity method investees	(616,000)	0
Income from continuing operations	3,335,000	32,000
Discontinued operations:
Income from operations of Advertising business, net of tax	0	832,000
Loss from sale of Advertising business	0	(4,818,000)
Loss on discontinued operations	0	(3,986,000)
Net income (loss)	$ 3,335,000	$ (3,954,000)
Basic income (loss) per share:
Income (loss) from continuing operations (in dollars per share)	$ 0.07	$ 0
Loss on discontinued operations (in dollars per share)	0	(0.08)
Net income (loss) (in dollars per share)	0.07	(0.08)
Diluted income (loss) per share:
Income (loss) from continuing operations (in dollars per share)	0.07	0
Loss on discontinued operations (in dollars per share)	0	(0.08)
Net income (loss) (in dollars per share)	$ 0.07	$ (0.08)
Weighted average shares used in computing income (loss) per share:
Basic (in shares)	47,227	47,780
Diluted (in shares)	47,841	49,648
Stock-based compensation expense included in continuing operations above:
Total stock-based compensation expense	$ 2,857,000	$ 1,752,000
Cost of revenue
Stock-based compensation expense included in continuing operations above:
Total stock-based compensation expense	19,000	16,000
Research and development
Stock-based compensation expense included in continuing operations above:
Total stock-based compensation expense	1,830,000	1,095,000
Sales and marketing
Stock-based compensation expense included in continuing operations above:
Total stock-based compensation expense	369,000	135,000
General and administrative
Stock-based compensation expense included in continuing operations above:
Total stock-based compensation expense	639,000	506,000
Product
Revenue:
Total revenue	56,809,000	55,990,000
Cost of revenue:
Total cost of revenue	32,530,000	31,989,000
Services
Revenue:
Total revenue	12,787,000	10,639,000
Cost of revenue:
Total cost of revenue	$ 7,553,000	$ 4,862,000

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 3,335	$ (3,954)
Other comprehensive income (loss):
Foreign currency translation adjustment, net of tax	360	(310)
Available-for-sale securities:
Unrealized gain (loss) on available-for-sale securities, net of tax	(127)	59
Reclassification adjustments for loss on available-for-sale securities recognized, net of tax	(188)	(1)
Net increase (decrease) from available-for-sale securities, net of tax	(315)	58
Other comprehensive income (loss), net of tax	45	(252)
Comprehensive income (loss)	$ 3,380	$ (4,206)

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit	Continuing Operations	Continuing Operations Additional Paid-in Capital	Discontinued Operations	Discontinued Operations Additional Paid-in Capital
Beginning balance (in shares) at Jun. 30, 2019		46,911
Beginning balance at Jun. 30, 2019	$ 90,640	$ 47	$ 182,349	$ (1,477)	$ (90,279)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)		1,326
Issuance of common stock upon exercise of stock options	8,341	$ 1	8,340
Release of restricted stock units (in shares)		329
Release of restricted stock units, net of shares withheld for taxes	(1,272)	$ 1	(1,273)
Stock-based compensation expense						$ 1,752	$ 1,752	$ 887	$ 887
Foreign currency translation adjustment, net of tax	(310)			(310)
Unrealized loss on available-for-sale securities, net of tax	58			58
Net income (loss)	(3,954)				(3,954)
Ending balance (in shares) at Sep. 30, 2019		48,566
Ending balance at Sep. 30, 2019	96,142	$ 49	192,055	(1,729)	(94,233)
Beginning balance (in shares) at Jun. 30, 2020		47,342
Beginning balance at Jun. 30, 2020	$ 96,970	$ 47	192,170	(477)	(94,770)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon exercise of stock options (in shares)	14	14
Issuance of common stock upon exercise of stock options	$ 67	$ 0	67
Release of restricted stock units (in shares)		162
Release of restricted stock units, net of shares withheld for taxes	(359)	$ 0	(359)
Issuance of common stock under employee stock purchase plan (in shares)		305
Issuance of common stock under employee stock purchase plan	1,204		1,204
Repurchase of common stock (in shares)		(300)
Repurchase of common stock	(1,630)		(1,027)		(603)
Stock-based compensation expense	2,857		2,857
Foreign currency translation adjustment, net of tax	360			360
Unrealized loss on available-for-sale securities, net of tax	(315)			(315)
Net income (loss)	3,335				3,335
Ending balance (in shares) at Sep. 30, 2020		47,523
Ending balance at Sep. 30, 2020	$ 102,489	$ 47	$ 194,912	$ (432)	$ (92,038)

Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Operating activities
Net income (loss)	$ 3,335,000	$ (3,954,000)
Loss on discontinued operations	0	3,986,000
Income from continuing operations	3,335,000	32,000
Adjustments to reconcile income from continuing operations to net cash provided by (used in) operating activities:
Stock-based compensation expense	2,857,000	1,752,000
Depreciation and amortization	760,000	922,000
Operating lease amortization, net of accretion	710,000	544,000
Accretion of net premium on short-term investments	85,000	12,000
Equity in net (income) of equity method investees	(616,000)	0
Other	(351,000)	101,000
Changes in operating assets and liabilities:
Accounts receivable	(12,653,000)	16,355,000
Deferred income taxes	245,000	171,000
Deferred costs	4,694,000	1,979,000
Prepaid expenses and other current assets	205,000	(502,000)
Other assets	(513,000)	28,000
Trade accounts payable	7,431,000	1,738,000
Accrued expenses and other liabilities	(4,537,000)	(10,259,000)
Income taxes payable	(500,000)	(152,000)
Operating lease liabilities	(504,000)	(897,000)
Deferred revenue	(5,656,000)	10,345,000
Net cash provided by (used in) operating activities	(5,008,000)	22,169,000
Investing activities
Purchases of property and equipment	(67,000)	(461,000)
Purchases of short-term investments	(2,381,000)	(41,418,000)
Purchase of long-term investments	(5,711,000)	(2,000,000)
Proceeds from sales and maturities of short-term investments	21,791,000	11,052,000
Net cash provided by (used in) investing activities	13,632,000	(32,827,000)
Financing activities
Proceeds from exercise of stock options	67,000	8,306,000
Tax withholdings related to net share settlements of restricted stock units	(359,000)	(832,000)
Proceeds from issuance of common stock under employee stock purchase plan	1,204,000	0
Repurchase of common stock	(1,630,000)	0
Net cash provided by (used in) financing activities	(718,000)	7,474,000
Effect of exchange rate changes on cash, cash equivalents and restricted cash	454,000	(336,000)
Net increase (decrease) in cash, cash equivalents and restricted cash, continuing operations	8,360,000	(3,520,000)
Net cash used in discontinued operations	0	(3,975,000)
Cash, cash equivalents and restricted cash, beginning of period	22,012,000	29,225,000
Cash, cash equivalents and restricted cash, end of period	30,372,000	21,730,000
Supplemental disclosure of cash flow information
Income taxes paid, net	472,000	739,000
Non-cash investing: Investment in inMarket Media, LLC acquired in exchange for sale of Advertising business	0	15,600,000
Cash flows from discontinued operations:
Net cash used in operating activities	0	(3,569,000)
Net cash used in financing activities	0	(406,000)
Net cash transferred from continuing operations	0	3,975,000
Net change in cash and cash equivalents from discontinued operations	0	0
Cash and cash equivalents of discontinued operations, beginning of period	0	0
Cash and cash equivalents of discontinued operations, end of period	0	0
Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets
Total cash, cash equivalents and restricted cash	$ 30,372,000	$ 21,730,000

Summary of business and significant accounting policies

3 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of business and significant accounting policies

Description of business

Telenav, Inc., also referred to in this report as “we,” “our” or “us,” was incorporated in September 1999 in the State of Delaware. We are a leading provider of automotive software and services providing both in-vehicle and cloud-based solutions. We focus on navigation and location-based services (LBS), where we pioneered many innovations including the market’s first mobile cloud-based navigation service. Navigation and LBS are the primary applications for in-vehicle infotainment (IVI) systems and we are using our strengths and core competencies to address the growing demand for overall connected car services. We provide our connected-car products and services directly to automobile manufacturers, as well as tier-one suppliers. Our fiscal year ends on June 30, and in this report we refer to the fiscal year ended June 30, 2020 as “fiscal 2020” and the fiscal year ending June 30, 2021 as “fiscal 2021.”

Commencing July 1, 2019, we operate in a single segment, automotive. Through June 30, 2019, we operated in three segments - automotive, advertising and mobile navigation. In August 2019, we completed the disposition of our digital advertising operations (the "Ads Business") and have presented the results of operations for the Ads Business as discontinued operations for all prior periods presented. See Note 11. Our mobile navigation services business represented less than 5% of total revenue for the three months ended September 30, 2020 and 2019 and we expect the business to continue to decline. Our chief executive officer, or CEO, the chief operating decision maker, does not review mobile navigation revenue and cost of revenue separately. As a result, we combine the mobile navigation business with the automotive business in a single segment.

Basis of presentation

The unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP. The condensed consolidated financial statements include the accounts of Telenav, Inc. and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The financial statements include all adjustments (consisting only of normal recurring adjustments) that our management believes are necessary for a fair presentation of the periods presented. These interim financial results are not necessarily indicative of results expected for the full fiscal year or for any subsequent interim period.

Our condensed consolidated financial statements also include the financial results of Shanghai Jitu Software Development Ltd., or Jitu, located in China. Based on our contractual arrangements with the shareholders of Jitu, we have determined that Jitu is a variable interest entity, or VIE, for which we are the primary beneficiary and are required to consolidate in accordance with Accounting Standards Codification, or ASC, subtopic 810-10, or ASC 810-10, Consolidation: Overall. The results of Jitu did not have a material impact on our financial statements for the three months ended September 30, 2020 and 2019.

The condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto for fiscal 2020, included in our Annual Report on Form 10-K for fiscal 2020 filed with the U.S. Securities and Exchange Commission, or SEC, on August 21, 2020, which we refer to as the Form 10-K.

Significant accounting policies

There have been no material changes to our significant accounting policies as compared to the significant accounting policies described in our Form 10-K.

Use of estimates

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Significant estimates and assumptions made by us include the determination of revenue recognition and deferred revenue, including estimating and allocating the transaction price of customer contracts, the recoverability of accounts receivable and short-term investments, the determination of the fair value of non-marketable debt and equity investments, the assessment of goodwill for impairment, the fair value of stock-based awards issued, the determination of income taxes and the recoverability of deferred tax assets. Actual results could differ from those estimates.

In March 2020, the World Health Organization declared the outbreak of the novel coronavirus first identified in China in late 2019 (COVID-19) as a pandemic, which continues to spread throughout the U.S. and the world. The COVID-19 pandemic and related adverse public health developments have caused and will continue to cause disruption to the economy and our business operations resulting from shelter-at-home orders, quarantines, self-isolations, or other restrictions on the ability of our employees to perform their jobs. For example, our automotive manufacturer partners closed manufacturing plants in response to the COVID-19 pandemic and only re-opened them in the three months ended June 30, 2020 for production in North America and Europe. The extent of the impact of the COVID-19 pandemic on our operational and financial performance will depend on future developments, including the duration and spread of the outbreak, its severity, the actions to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating conditions can resume, all of which are uncertain and we cannot predict. During the three months ended September 30, 2020, this uncertainty resulted in a higher level of judgment related to our estimates and assumptions concerning short-term investments, long-lived assets, non-marketable equity and debt investments, goodwill, and variable consideration related to revenue recognition. We expect uncertainties around our key accounting estimates to continue to evolve depending on the duration and degree of impact associated with the COVID-19 pandemic. Our estimates may change as new events occur and additional information emerges, and such changes are recognized or disclosed in our condensed consolidated financial statements.

Disaggregation of revenue

In order to further depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors, the following table depicts the disaggregation of revenue according to revenue type and pattern of recognition (in thousands):


	Three Months Ended September 30,
	2020		2019
Product
On-board automotive navigation solutions (point in time)(1)	$	56,809	$	55,990
Total product revenue	56,809		55,990
Services
Brought-in automotive navigation solutions (over time)(2)	10,914		6,222
Automotive maintenance and support and other (over time)	90		1,669

Mobile navigation services (over time)	1,783		2,748
Total services revenue	12,787		10,639
Total revenue	$	69,596	$	66,629
(1)Includes i) royalties earned and recognized at the point in time usage occurs, ii) map updates and iii) customized software development fees.
(2)Includes royalties earned and recognized over time from the allocation of transaction price to service obligations for hybrid automotive solutions.

Contract assets

Contract assets relate to our rights to consideration for performance obligations satisfied but not billed at the reporting date. As of September 30, 2020 and June 30, 2020, we had no contract assets.

Deferred costs

Changes in the balance of total deferred costs (current and non-current) during the three months ended September 30, 2020 were as follows (in thousands):


	Deferred Costs
	Content		Development		Total
Balance, June 30, 2020	$	73,598	$	7,071	$	80,669
Content licensing costs incurred	33,136		—		33,136
Customized software development costs incurred	—		695		695
Less: cost of revenue recognized	(37,213)		(1,246)		(38,459)
Balance, September 30, 2020	$	69,521	$	6,520	$	76,041

Concentrations of risk and significant customers

Revenue related to products and services provided through Ford Motor Company and affiliated entities, or Ford, comprised 45% and 52% for the three months ended September 30, 2020 and 2019, respectively. As of September 30, 2020 and June 30, 2020, receivables due from Ford were 38% and 39% of total accounts receivable, respectively.

Revenue related to products and services provided through General Motors Holdings and its affiliates, or GM, comprised 45% and 25% for the three months ended September 30, 2020 and 2019, respectively. As of September 30, 2020 and June 30, 2020, receivables due from GM were 46% and 44% of total accounts receivable, respectively.

Revenue related to products and services provided to affiliates of Grab Holdings, Inc., which, collectively with certain of its affiliates, we refer to as Grab, comprised 10% of total revenue for the three months ended September 30, 2019.

Restricted cash

As of September 30, 2020 and June 30, 2020, we had restricted cash of $2.1 million and $1.5 million, respectively, on our condensed consolidated balance sheets, comprised primarily of prepayments from a customer.

Accumulated other comprehensive loss, net of tax

The components of accumulated other comprehensive loss, net of related taxes, and activity as of September 30, 2020, were as follows (in thousands):


	Foreign Currency Translation Adjustments		Unrealized Gains (Losses) on Available-for-Sale Securities		Total
Balance, net of tax as of June 30, 2020	$	(1,834)	$	1,357	$	(477)
Other comprehensive income (loss) before reclassifications, net of tax	360		(127)		233
Amount reclassified from accumulated other comprehensive loss, net of tax	—		(188)		(188)
Other comprehensive income (loss), net of tax	360		(315)		45
Balance, net of tax as of September 30, 2020	$	(1,474)	$	1,042	$	(432)

The amount of income tax benefit allocated to each component of accumulated other comprehensive loss was not material for the three months ended September 30, 2020.

Recent accounting pronouncements not yet adopted

There have been no other changes in accounting pronouncements during the three months ended September 30, 2020, as compared to the recent accounting pronouncements not yet adopted described in our Form 10-K, that are of significance or potential significance to us.

Net income (loss) per share

3 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Net income (loss) per share

Basic income (loss) per share is calculated by dividing income (loss) by the weighted-average number of common shares outstanding for the period. Diluted income (loss) per share is computed by dividing income (loss) by the weighted-average number of common shares outstanding for the period, including potential dilutive common shares assuming the dilutive effect of outstanding stock options, restricted stock units and employee stock purchase plan rights using the treasury-stock method.

The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share amounts):


	Three Months Ended September 30,
	2020		2019
Income from continuing operations	$	3,335	$	32
Loss on discontinued operations	—		(3,986)
Net income (loss)	$	3,335	$	(3,954)

Shares used to compute basic income (loss) per share	47,227		47,780
Dilutive potential common shares:
Stock options	—		527
Restricted stock units	577		1,341
Employee stock purchase plan	37		—
Shares used to compute diluted income (loss) per share	47,841		49,648
Basic income (loss) per share:
Income from continuing operations	$	0.07	$	—
Loss on discontinued operations	—		(0.08)
Net income (loss)	$	0.07	$	(0.08)
Diluted income (loss) per share:
Income from continuing operations	$	0.07	$	—
Loss on discontinued operations	—		(0.08)
Net income (loss)	$	0.07	$	(0.08)

Potential common stock equivalents not included in the calculation of diluted income (loss) per share as the effect would be anti-dilutive	1,856		5,026

A total of 1,495,000 and 800,000 outstanding performance-based restricted stock units as of September 30, 2020 and 2019, respectively, as described further in Note 9, were excluded from the diluted shares calculation above because they are contingently issuable and none of the performance milestones had been met.

Cash, cash equivalents and short-term investments

3 Months Ended

Sep. 30, 2020

Cash, Cash Equivalents, and Short-term Investments [Abstract]

Cash, cash equivalents and short-term investments

Cash and cash equivalents consist of unrestricted cash and highly liquid fixed-income investments with original maturities of three months or less at the time of purchase, including money market funds. Short-term investments consist of readily marketable debt securities with a remaining maturity of more than three months from the date of purchase. Short-term investments are classified as current assets, even though maturities may extend beyond one year, because they represent investments of cash available for operations. We classify all cash equivalents and short-term investments as “available for sale,” as these investments are free of trading restrictions. Marketable debt securities are carried at fair value, with the unrealized gains and losses, net of tax, reported as accumulated other comprehensive income (loss) and included as a separate component of stockholders’ equity. Gains and losses are recognized when realized. When we have determined that an other-than-temporary decline in fair value has occurred, the amount of the decline that is related to a credit loss is recognized in earnings. Gains and losses are determined using the specific identification method. We had no material realized gains or losses in the three months ended September 30, 2020 or 2019.

Cash, cash equivalents and short-term investments consisted of the following as of September 30, 2020 (in thousands):


Description	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Cash	$	23,010	$	—	$	—	$	23,010
Cash equivalents:
Money market mutual funds	5,303		—		—		5,303





Total cash equivalents	5,303		—		—		5,303
Total cash and cash equivalents	28,313		—		—		28,313
Short-term investments:
U.S. treasury securities	1,532		27		—		1,559
U.S. agency securities	3,188		44		—		3,232
Asset-backed securities	16,599		352		—		16,951

Municipal securities	6,280		83		—		6,363



Corporate bonds	41,651		750		(1)		42,400
Total short-term investments	69,250		1,256		(1)		70,505
Cash, cash equivalents and short-term investments	$	97,563	$	1,256	$	(1)	$	98,818

Cash, cash equivalents and short-term investments consisted of the following as of June 30, 2020 (in thousands):


Description	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Cash	$	20,323	$	—	$	—	$	20,323
Cash equivalents:
Money market mutual funds	195		—		—		195


Total cash equivalents	195		—		—		195
Total cash and cash equivalents	20,518		—		—		20,518
Short-term investments:
U.S. treasury securities	3,712		41		—		3,753
U.S. agency securities	5,004		54		—		5,058
Asset-backed securities	20,392		434		—		20,826

Municipal securities	9,464		78		—		9,542


Corporate bonds	50,173		963		—		51,136


Total short-term investments	88,745		1,570		—		90,315
Cash, cash equivalents and short-term investments	$	109,263	$	1,570	$	—	$	110,833

There were no available-for-sale securities that were in a material unrealized loss position as of September 30, 2020 or June 30, 2020.

The following table summarizes the cost and estimated fair value of short-term fixed income securities classified as short-term investments based on stated maturities as of September 30, 2020 (in thousands):


	Amortized Cost		Estimated Fair Value
Due within one year	$	29,750	$	30,096
Due between one and two years	28,791		29,479
Due between two and three years	10,709		10,930
Total	$	69,250	$	70,505

Declines in fair value judged to be other-than-temporary on securities available for sale are included as a component of other income, net. In order to determine whether a decline in value is other-than-temporary, we evaluate, among other factors: the duration and extent to which the fair value has been less than the carrying value and our intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in fair market value. As of September 30, 2020, we did not consider any of our short-term investments to be other-than-temporarily impaired.

Fair value of financial instruments

3 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Fair value of financial instruments

Cash equivalents and short-term investments

We measure certain financial instruments at fair value on a recurring basis. We utilize a hierarchy, which consists of three levels, for disclosure of the inputs used to determine the fair value of our financial instruments.

Level 1 valuations are based on quoted prices in active markets for identical assets or liabilities.

Level 2 valuations are based on inputs that are observable, either directly or indirectly, other than quoted prices included within Level 1. Such inputs used in determining fair value for Level 2 valuations include quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 valuations are based upon information that is unobservable and significant to the overall fair value measurement.

Where applicable, we use quoted prices in active markets for similar assets to determine fair value of Level 2 short-term investments. If quoted prices in active markets for identical assets are not available to determine fair value, we use quoted prices for similar assets and liabilities or inputs that are observable either directly or indirectly. If quoted prices for identical or similar assets are not available, we use third-party valuations utilizing underlying assets assumptions.

All of our cash equivalents and short-term investments are classified within Level 1 or Level 2. As of September 30, 2020 and June 30, 2020, we did not have any short-term investments that require Level 3 valuations. The fair values of these financial instruments were determined using the following inputs at September 30, 2020 (in thousands):


	Fair Value Measurements at September 30, 2020 Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	Total		(Level 1)		(Level 2)		(Level 3)
Cash equivalents:
Money market mutual funds	$	5,303	$	5,303	$	—	$	—





Total cash equivalents	5,303		5,303		—		—
Short-term investments:
U.S. treasury securities	1,559		1,559		—		—
U.S. agency securities	3,232		—		3,232		—
Asset-backed securities	16,951		—		16,951		—
Municipal securities	6,363		—		6,363		—


Corporate bonds	42,400		—		42,400		—
Total short-term investments	70,505		1,559		68,946		—
Cash equivalents and short-term investments	$	75,808	$	6,862	$	68,946	$	—

The fair values of our financial instruments were determined using the following inputs at June 30, 2020 (in thousands):


	Fair Value Measurements at June 30, 2020 Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	Total		(Level 1)		(Level 2)		(Level 3)
Cash equivalents:
Money market mutual funds	$	195	$	195	$	—	$	—


Total cash equivalents	195		195		—		—
Short-term investments:
U.S. treasury securities	3,753		3,753		—		—
U.S. agency securities	5,058		—		5,058		—
Asset-backed securities	20,826		—		20,826		—

Municipal securities	9,542		—		9,542		—


Corporate bonds	51,136		—		51,136		—


Total short-term investments	90,315		3,753		86,562		—
Cash equivalents and short-term investments	$	90,510	$	3,948	$	86,562	$	—

Accretion of net premium on short-term investments totaled $85,000 and $12,000 in the three months ended September 30, 2020 and 2019, respectively.

There were no transfers between Level 1 and Level 2 financial instruments in the three months ended September 30, 2020 and 2019.

We did not have any financial liabilities measured at fair value on a recurring basis as of September 30, 2020 or June 30, 2020.

Non-marketable equity investments

Our non-marketable equity securities are investments in privately held companies without readily determinable market values.

The carrying value of our non-marketable equity securities is measured at cost and adjusted to fair value for observable transactions for identical or similar investments of the same issuer or impairment (referred to as the measurement alternative). All gains and losses on non-marketable equity securities, realized and unrealized, are recognized in other income, net. Non-marketable equity securities that we remeasure are classified within Level 3 in the fair value hierarchy because we estimate the value based on valuation methods using the observable transaction price at the transaction date and other unobservable inputs including volatility, rights, and obligations of the securities we hold.

In September 2020, a company in which we held a $200,000 non-marketable equity investment was acquired in an all cash transaction, resulting in a realized gain to us of $247,000. As of September 30, 2020, the transaction proceeds were in process of being transmitted to us and accordingly, the total of $447,000 was included in prepaid expenses and other current assets in our condensed consolidated balance sheet.

In July 2020, we invested $2.5 million in exchange for Series A-3 redeemable convertible preferred shares representing a less than 20% equity ownership interest in a privately held company.

In January 2020, we completed the sale of certain intellectual property and workforce associated with the OpenTerra Platform in exchange for consideration that included a non-marketable equity interest in Grab Holdings, Inc. ordinary shares valued at $6.2 million. See Note 12.

We had no net unrealized gains from non-marketable equity securities in the three months ended September 30, 2020 and 2019.

The carrying value of our non-marketable equity securities carried at cost and adjusted under the measurement alternative, none of which required remeasurement to fair value, was $9.0 million and $6.7 million at September 30, 2020 and June 30, 2020, respectively.

Non-marketable equity investments accounted for under the equity method

In August 2019, we completed the disposition of our Ads Business in exchange for a non-marketable equity investment in inMarket Media, LLC, or inMarket, valued at $15.6 million. See Note 11. In assessing the fair value of our investment in inMarket, we made assumptions regarding estimated future cash flows, weighted average cost of capital and timing over which the cash flows will occur, amongst other factors.

An investment in a limited liability company such as inMarket that maintains a specific ownership account for each investor is deemed to be similar to an investment in a limited partnership. Accordingly, because we hold more than a 3% to 5% ownership interest in inMarket, we are required to account for our inMarket investment under the equity method of accounting and record our proportionate share of investee earnings each period.

In January 2020, we invested $4.0 million in exchange for Series B preferred units and a warrant to purchase additional preferred units in a privately held limited liability company. The warrant expires on the earlier of (i) July 5, 2021, (ii) acceptance of a purchase offer from another entity, or (iii) an initial public offering of the issuer’s common stock. The exercise price of the warrant is variable depending on the achievement of certain performance conditions by the issuer.

The warrant meets the definition of a derivative financial instrument. Accordingly, we allocated the $4.0 million cost of the investment first to the fair value of the warrant, with the residual allocated to the preferred units. The fair value of the warrant at issuance was determined to be $448,000, with the remaining $3.6 million allocated to the preferred units. In assessing the fair value of the warrant within Level 3, we utilized a Black-Scholes option pricing model incorporating assumptions regarding probability of achievement of performance conditions, underlying equity value, expected term and risk free rate. The underlying equity used in the option pricing model was determined primarily based on revenue and earnings multiples for comparable companies, amongst other factors. The warrant is accounted for separately and marked to market each reporting period, with any gain or loss reported in other income, net in our condensed consolidated statement of operations. Similar to the inMarket investment, we account for the $3.6 million investment in preferred units under the equity method of accounting because we hold more than a 3% to 5% ownership interest in the investee.

We recognized income of $616,000 and zero related to our proportionate share of investments accounted for under the equity method for the three months ended September 30, 2020 and 2019, respectively. The carrying value of our non-marketable equity investments accounted for under the equity method was $20.6 million and $20.0 million at September 30, 2020 and June 30, 2020, respectively.

The warrant mark-to-market adjustment at September 30, 2020 was a gain of $104,000. The carrying value of the warrant was $817,000 and $713,000 at September 30, 2020 and June 30, 2020, respectively.

Non-marketable debt investments

In fiscal 2020, we invested $1.5 million in the form of a convertible note receivable in a privately held company without a readily determinable market value. The note receivable matures on October 31, 2021 or upon request for payment by a majority of note holders, or otherwise upon a change of control, qualified financing event or event of default involving the privately held company. The note converts to preferred stock or common stock upon certain events as defined, including a qualified preferred stock financing round or a change in control of ownership. Interest accrues annually at 6.5% and is due in full upon maturity.

In fiscal 2020, we invested $4.0 million and in July 2020 we invested an additional $3.0 million for a total of $7.0 million in the form of convertible notes receivable in a privately held company without a readily determinable market value. The notes receivable mature upon request for payment by a majority of note holders on or after August 23, 2021, or otherwise upon a change of control, qualified financing event or event of default involving the privately held company. The notes convert to preferred stock or common stock upon certain events as defined, including a qualified preferred stock financing round or a change in control of ownership. Interest accrues annually at 6% and is due in full upon maturity.

In fiscal 2020, we invested $417,000 and in July 2020 we invested an additional $90,000 for a total of $507,000 in the form of a convertible note receivable in a privately held company without a readily determinable market value, pursuant to which we agreed to loan up to a total of $710,000. The note receivable matures on March 24, 2021 and is convertible into equity at our discretion. Interest accrues annually at 6% and is due in full upon maturity.

The convertible notes are classified as available for sale and are carried at fair value within Level 3, with any unrealized gains and losses, net of tax, reported as accumulated other comprehensive income (loss) and included as a separate component of stockholders’ equity. Gains and losses are recognized when realized and reported in other income, net in our condensed consolidated statement of operations. We did not have any unrealized or realized gains or losses in the three months ended September 30, 2020 and 2019. The carrying value of our non-marketable debt investments was $9.0 million and $5.9 million at September 30, 2020 and June 30, 2020, respectively.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Leases

3 Months Ended

Sep. 30, 2020

Leases [Abstract]

Leases

We have entered into various non-cancelable office space operating leases with original lease periods expiring between 2020 and 2024. These do not contain material variable rent payments, residual value guarantees, covenants or other restrictions.

Operating lease costs for the three months ended September 30, 2020 and 2019 were $869,000 and $817,000, respectively. The weighted-average remaining term of our operating leases was 2.9 years and the weighted-average discount rate used to measure the present value of the operating lease liabilities was 5.0% as of September 30, 2020.

Maturities of our operating lease liabilities, which do not include short-term leases, as of September 30, 2020 were as follows (in thousands):


Fiscal Year
2021	$	2,195
2022	2,865
2023	2,329
2024	619
2025	—

Total lease payments	8,008
Less: imputed interest	(530)
Total operating lease liabilities	$	7,478

Cash payments included in the measurement of our operating lease liabilities were $500,000 and $920,000 for the three months ended September 30, 2020 and 2019, respectively.

Balance sheet information

3 Months Ended

Sep. 30, 2020

Balance Sheet Related Disclosures [Abstract]

Balance sheet information

Goodwill

Goodwill as of September 30, 2020 and June 30, 2020 was $14.3 million.

Intangible assets consisted of acquired developed technology, which was fully amortized as of September 30, 2020 and June 30, 2020. Amortization expense related to intangibles was $218,000 for the three months ended September 30, 2019.

Other assets

Other assets consisted of the following (in thousands):


	September 30, 2020		June 30, 2020
Deposits and other assets	$	1,841	$	1,225
Non-marketable equity investments	8,970		6,670
Warrant to purchase non-marketable equity investment units	817		713
Non-marketable equity investments accounted for under the equity method	20,557		20,027
Non-marketable debt investments	9,007		5,917
Total other assets	$	41,192	$	34,552

Accrued expenses

Accrued expenses consisted of the following (in thousands):


	September 30, 2020		June 30, 2020
Accrued compensation and benefits	$	8,735	$	15,117
Accrued royalties	13,091		9,701
Customer overpayments and related reserves	2,607		2,666
Other accrued expenses	7,400		8,726
Total accrued expenses	$	31,833	$	36,210

Deferred revenue and remaining performance obligations

3 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Deferred revenue and remaining performance obligations

Deferred revenue

Deferred revenue, which is a contract liability, consists primarily of payments received in advance of revenue recognition under our contracts with customers and is recognized upon transfer of control. Changes in the balance of total deferred revenue (current and non-current) during the three months ended September 30, 2020 were as follows (in thousands):


Beginning balance, June 30, 2020	$	138,943
Revenue recognized that was included in beginning balance	(18,986)
Amount billed, net of revenue recognized that was not included in beginning balance	13,573
Ending balance, September 30, 2020	$	133,530

The cumulative adjustment as a result of changes in the estimate of the transaction price of customer contracts during the three months ended September 30, 2020 was a net increase in revenue recognized of $591,000. In addition, the amount of revenue recognized in the three months ended September 30, 2020 from performance obligations satisfied or partially satisfied in previous periods was $591,000.

Remaining performance obligations

Transaction price allocated to the remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that are expected to be invoiced and recognized as revenue in future

periods. As of September 30, 2020, the aggregate amount of the transaction price allocated to remaining performance obligations was $61.3 million, which is expected to be recognized over a remaining period of approximately 0.2 to 6.3 years. This amount excludes the variable consideration that falls under the exemption for usage-based royalties promised in exchange for a license of intellectual property.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Commitments and contingencies	3 Months Ended
Commitments and contingencies	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and contingencies	Commitments and contingencies Guarantees and indemnifications Our agreements with our customers generally include certain provisions for indemnifying them against liabilities if our products and services infringe a third party’s intellectual property rights or for other specified matters. We have in the past received indemnification requests or notices of their intent to seek indemnification in the future from our customers with respect to specific litigation claims in which our customers have been named as defendants. The maximum amount of potential future indemnification is unlimited. We have agreed to indemnify our directors, officers and certain other employees for certain events or occurrences, subject to certain limits, while such persons are or were serving at our request in such capacity. We may terminate the indemnification agreements with these persons upon the termination of their services with us, but termination will not affect claims for indemnification related to events occurring prior to the effective date of termination. The maximum amount of potential future indemnification is unlimited. We have a directors’ and officers’ insurance policy that limits our potential exposure. We believe that any financial exposure related to these indemnification agreements is not material. Other contractual commitments As of September 30, 2020, we had $11.8 million of future minimum non-cancelable financial commitments primarily related to license fees due to certain of our third-party content providers, regardless of usage level. These commitments are primarily due within five years. Contingencies From time to time, we may become involved in legal proceedings, claims and litigation arising in the ordinary course of business. When we believe a loss or a cost of indemnification is probable and which we can reasonably estimate, we accrue our estimate of the loss or cost of indemnification in our condensed consolidated financial statements. Where we cannot determine the outcome of these matters, we do not make a provision in our financial statements until the loss or cost of indemnification, if any, is probable and can be reasonably estimated or the outcome becomes known. We expense legal fees related to these matters as they are incurred. In addition, we have received, and expect to continue to receive, demands for indemnification from our customers, which demands can be very expensive to settle or defend, and we have in the past offered to contribute to settlement amounts and incurred legal fees in connection with certain of these indemnity demands. Furthermore, in response to these demands, we may be required to assume control of and bear all costs associated with the defense of our customers in compliance with our contractual commitments. Legal proceedings are subject to inherent uncertainties. Unfavorable outcomes could have a material adverse impact on our business, financial position, cash flows or overall trends in results of our operations.

Stock-based compensation

3 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

Stock-based compensation

Stock-based compensationUnder our 2019 Equity Incentive Plan, or the 2019 Plan, (and historically under our 2009 Equity Incentive Plan, which terminated as to new awards in October 2019), eligible employees, directors and consultants are able to participate in our future performance through awards of nonqualified stock options, incentive stock options and restricted stock units as authorized by our board of directors.

A summary of our stock option activity is as follows (in thousands except per share and contractual life amounts):


	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value
Options outstanding as of June 30, 2020	1,638	$	6.55
Granted	—	—
Exercised	(14)	4.92
Canceled or expired	(9)	5.56
Options outstanding as of September 30, 2020	1,615	$	6.56	4.95	$	—
As of September 30, 2020:
Options vested and expected to vest	1,603	$	6.58	4.92	$	—
Options exercisable	1,468	$	6.70	4.64	$	—

A summary of our restricted stock unit, or RSU, activity is as follows (in thousands except contractual life amounts):


	Number of Shares	Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value
RSUs outstanding as of June 30, 2020	2,476
Granted	380
Vested	(235)
Canceled	(77)
RSUs outstanding as of September 30, 2020	2,544	1.32	$	9,157
As of September 30, 2020:
RSUs expected to vest	2,269	1.23	$	8,168

Performance-based RSUs

In September 2020, the Compensation Committee of our Board of Directors (the “Compensation Committee”) approved the grant under our 2019 Plan of performance-based RSUs covering a target of 195,000 shares of common stock under individual grants to certain of our executive officers, which we refer to as the 2021 PSU Awards. The 2021 PSU Awards are subject to four performance milestones, each requiring achievement of a specified trailing average closing stock price for a 30-trading day period on or before the four-year anniversary of the 2021 PSU Awards’ grant date. In the event our Board of Directors approves entering a transaction which, if consummated, would constitute a “change in control” of the Company as defined in the 2019 Plan, the performance milestones are increased with respect to shares not already eligible to vest under the 2021 PSU Awards, and the performance period is extended to the five-year anniversary of the 2021 PSU Awards’ grant date. Achieving each individual stock price performance milestone will result in one quarter of the shares subject to the 2021 PSU Awards becoming eligible to vest. If a stock price performance milestone is achieved, then the shares that became eligible to vest will vest in four equal quarterly installments as of the ensuing March 1, June 1, September 1 and December 1 following the date of certification of the date the performance milestone was achieved, in each case subject to the respective executive’s continued service with the Company through the applicable vesting date. Vesting under the 2021 PSU Awards may be accelerated under certain conditions involving a change in control of our Company, including as provided under respective change in control agreements entered between us and the executive. The maximum number of shares subject to the 2021 PSU Awards that may vest is 195,000. No shares had vested as of September 30, 2020 under the 2021 PSU Awards.

In February 2020, the Compensation Committee approved the grant under our 2019 Plan of performance-based RSUs covering a target of 500,000 shares of common stock under individual grants to certain of our executive officers, which we refer to as the 2020 PSU Awards. The 2020 PSU Awards are subject to four performance milestones, each requiring achievement of a specified trailing average closing stock price for a 30-trading day period on or before the three-year anniversary of the 2020

PSU Awards’ grant date. In the event our Board of Directors approves entering a transaction which, if consummated, would constitute a “change in control” of the Company as defined in the 2019 Plan, the performance milestones are increased with respect to shares not already eligible to vest under the 2020 PSU Award, and the performance period is extended to the four-year anniversary of the 2020 PSU Awards’ grant date. Achieving each individual stock price performance milestone will result in one quarter of the shares subject to the 2020 PSU Award becoming eligible to vest. If a stock price performance milestone is achieved, then the shares that became eligible to vest will vest in four equal quarterly installments as of the ensuing March 10, June 10, September 10 and December 10 following the date of certification of the date the performance milestone was achieved, in each case subject to the respective executive’s continued service with the Company through the applicable vesting date. Vesting under the 2020 PSU Award may be accelerated under certain conditions involving a change in control of our Company, including as provided under respective change in control agreements entered between us and the executive. The maximum number of shares subject to the 2020 PSU Award that may vest is 500,000. No shares had vested as of September 30, 2020 under the 2020 PSU Awards.

In September 2019, the Compensation Committee approved the grant under our 2009 Equity Incentive Plan of performance-based RSUs covering a target of 560,000 shares of common stock under individual grants to several of our executive officers, which we refer to as the 2019 PSU Awards. The 2019 PSU Awards are subject to four performance milestones, each requiring achievement of a specified trailing average closing stock price for a 30 trading day period on or before the three-year anniversary of the 2019 PSU Awards’ grant date. Achieving each individual stock price performance milestone will result in one quarter of the shares subject to the 2019 PSU Award becoming eligible to vest. If a stock price performance milestone is achieved, then one half of the shares that became eligible to vest under the 2019 PSU Award upon achievement of that stock price performance milestone will vest on the later of November 1, 2020, or the date that the Compensation Committee certifies achievement of the milestone, and the remaining one half of the shares that became eligible to vest will vest on the one-year anniversary of the date the performance milestone was achieved, in each case subject to the respective executive’s continued service with the Company through the applicable vesting date. The 2019 PSU Award milestones are subject to change upon a change in control, as defined in the agreement. The maximum number of shares subject to the 2019 PSU Award that may vest is 560,000. No shares had vested as of September 30, 2020 under the 2019 PSU Awards.

In October 2018, the Compensation Committee approved the grant under our 2009 Equity Incentive Plan of performance-based RSUs covering a target of 240,000 shares of common stock to Dr. HP Jin, our CEO, which we refer to as the CEO PSU Award. The CEO PSU Award is subject to four performance milestones, each requiring achievement of a specified trailing average closing stock price for a 30 trading day period on or before the three-year anniversary of the CEO PSU Award’s grant date. Achieving each individual stock price performance milestone will result in one quarter of the shares subject to the CEO PSU Award becoming eligible to vest. If a stock price performance milestone is achieved, then one half of the shares that became eligible to vest under the CEO PSU Award upon achievement of that stock price performance milestone will vest on the later of November 1, 2019, or the date that the Compensation Committee certifies achievement of the milestone, and the remaining one half of the shares that became eligible to vest will vest on the one-year anniversary of the date the performance milestone was achieved, in each case subject to Dr. Jin’s continued service with the Company through the applicable vesting date. The CEO PSU Award milestones are subject to change upon a change in control, as defined in the agreement. The maximum number of shares subject to the CEO PSU Award that may vest is 240,000. No shares had vested as of September 30, 2020 under the CEO PSU Award.

Since achievement of the awards is dependent on a market condition, stock-based compensation expense associated with these awards is recognized regardless of whether the market condition is satisfied, provided that the requisite service period has been met. We utilized the Monte Carlo valuation method to determine the fair value and derived service periods of each of the stock price performance milestones. Total stock-based compensation expense associated with all PSU Awards, included in the stock-based compensation expense table below, was $1.1 million for the three months ended September 30, 2020 and not material for the three months ended September 30, 2019.

As of September 30, 2020, no performance-based RSU awards had been earned or canceled, and 1,495,000 shares subject to performance-based RSU awards remained outstanding.

Shares available for grant

In November 2019, our stockholders approved the 2019 Plan, pursuant to which 5,700,000 shares were initially reserved for future grants and up to an additional 5,800,000 shares are reserved to the extent shares subject to grants under the previous 2009 Equity Incentive Plan, or 2009 Plan, were outstanding as of November 20, 2019 but later expire or otherwise terminate without having been exercised in full (in which case the shares subject to such grants will be returned to the 2019 Plan and

available for future issuance). The 2019 Plan became effective on November 20, 2019 and will automatically terminate 10 years from its date of adoption by our Board of Directors. A summary of our shares available for grant activity is as follows (in thousands):


						Number of Shares
Shares available for grant as of June 30, 2020						5,280
Shares added from 5,800,000 reserved share pool available(1)						84
Granted						(575)
RSUs withheld for taxes in net share settlements						5
Canceled or expired						2

Shares available for grant as of September 30, 2020						4,796
(1) Additional shares are available up to a maximum of 5,800,000 shares only to the extent shares subject to grants under the 2009 Plan were outstanding as of November 20, 2019 but later expire or otherwise terminate without having been exercised in full.

Employee Stock Purchase Plan

In November 2019, the Company’s stockholders approved the 2019 Employee Stock Purchase Plan, or ESPP, which became effective on November 20, 2019. A total of 2,500,000 shares were authorized for issuance to participating employees upon adoption of the ESPP. The ESPP provides for 12-month offering periods beginning March 1 and September 1 of each year, and each offering period will consist of two six-month purchase periods. The initial offering period commenced on March 1, 2020 and will end on March 1, 2021. On each purchase date, eligible employees will purchase the shares at a price per share equal to 85% of the lesser of (i) the fair market value of our stock on the enrollment date of the offering period or (ii) the fair market value of our stock on the exercise date.

During the three months ended September 30, 2020, the Company’s employees purchased 304,964 shares of its common stock under the ESPP. The shares were purchased at a weighted-average purchase price of $3.94 per share, with total proceeds to the Company of $1.2 million.

As of September 30, 2020, there was $1.6 million of unrecognized stock-based compensation expense related to the ESPP that is expected to be recognized over an average vesting period of 0.64 years.

Stock-based compensation expense

The following table summarizes the stock-based compensation expense for continuing operations recorded for stock options, RSUs, including performance-based RSUs, and ESPP purchase rights (in thousands):


	Three Months Ended September 30,
	2020		2019
Stock option awards	$	108	$	308
RSU awards	2,351		1,444
ESPP	398		—
Total stock-based compensation expense	$	2,857	$	1,752

We use valuation pricing models to determine the fair value of stock-based awards. The determination of the fair value of stock-based payment awards on the date of grant is affected by the stock price as well as assumptions regarding a number of complex and subjective variables. These variables include expected stock price volatility over the term of the awards, actual and projected employee stock option exercise behaviors, risk-free interest rates and expected dividends.

No stock option awards were granted during the three months ended September 30, 2020 and 2019.

The weighted average assumptions used to value ESPP purchase rights during the initial offering period beginning March 1, 2020 and subsequent offering period beginning September 1, 2020 were as follows:




Expected volatility	88	%
Expected term (in years)	0.65
Risk-free interest rate	0.38	%
Dividend yield	—	%

Income taxes	3 Months Ended
Income taxes	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Income taxes	Income taxes For interim reporting purposes, we calculate an annual estimated tax rate and apply that rate to actual results to estimate our taxes. In cases when we cannot reliably estimate an annual estimated tax rate, actual tax expense or the “cutoff method” is utilized as the estimate. The effective tax rate for the periods presented is the result of the mix of forecasted fiscal year income earned or loss incurred in various tax jurisdictions that apply a broad range of income tax rates. Our provision for income taxes for continuing operations was $14,000 in the three months ended September 30, 2020 compared to $411,000 in the three months ended September 30, 2019 and was comprised primarily of foreign withholding taxes and income taxes in foreign jurisdictions. Our effective tax provision rate of 0% of income from continuing operations for the three months ended September 30, 2020 was less than the tax amount computed at the U.S. federal statutory income tax rate due primarily to the release of the valuation allowance. Our effective tax provision rate of 93% of income from continuing operations for the three months ended September 30, 2019 was greater than the tax amount computed at the U.S. federal statutory income tax rate due primarily to losses for which no benefit will be recognized since the tax assets are not likely to be realized due to the lack of current and forecasted future income. We record liabilities related to unrecognized tax benefits in accordance with authoritative guidance on accounting for uncertain tax positions. As of September 30, 2020 and June 30, 2020, our cumulative unrecognized tax benefits were $5.5 million and $5.4 million, respectively. Included in the balance of unrecognized tax benefits at September 30, 2020 and June 30, 2020 was $100,000 that if recognized would affect the effective tax rate. We recognize interest and penalties related to unrecognized tax benefits as part of our provision for federal, state and foreign income taxes. We accrued zero for the payment of interest and penalties at September 30, 2020 and June 30, 2020. We file income tax returns with the Internal Revenue Service, or IRS, California and various states and foreign tax jurisdictions in which we have filing obligations. The statute of limitations remains open from fiscal 2017 for federal tax purposes, from fiscal 2016 in state jurisdictions and from fiscal 2015 in foreign jurisdictions. Fiscal years outside the normal statute of limitation remain open to audit by tax authorities due to tax attributes generated in those early years which have been carried forward and may be audited in subsequent years when utilized. Due to operating losses in previous years and continued earnings volatility, we maintain a valuation allowance on the majority of our deferred tax assets. Our valuation allowance at June 30, 2020 was $46.8 million. In evaluating our ability to recover our deferred tax assets each quarter, we consider all available positive and negative evidence, including current and previous operating results, ability to carryback losses for a tax refund, and forecasts of future operating results. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, was enacted in response to the COVID-19 pandemic. The CARES Act, among other things, permits net operating loss (NOL) carryovers and carrybacks to offset 100% of taxable income for taxable years beginning before 2021. In addition, the CARES Act allows NOLs incurred in 2018, 2019, and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. Due to the Company’s history of losses and previous carrybacks, we will not receive any tax benefit from the NOL carryback provisions of the CARES Act.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Sale of Ads Business

3 Months Ended

Sep. 30, 2020

Discontinued Operations and Disposal Groups [Abstract]

Sale of Ads Business

Sale of Ads BusinessOn August 16, 2019, we completed the disposition of our Ads Business to inMarket, which we refer to as the inMarket Transaction. In consideration, inMarket issued to us limited liability company units of inMarket representing a 14.5%-member interest in inMarket at the time of the closing of the inMarket Transaction. We also received a perpetual, non-exclusive, irrevocable, royalty-free license under software and other intellectual property rights being assigned to inMarket as part of the inMarket Transaction, as set forth in the Asset Purchase Agreement, dated August 8, 2019, by and among us, Thinknear, Inc., our wholly owned subsidiary, and inMarket, as amended. Pursuant to the terms of a Transition Services Agreement, we also agreed to provide inMarket with transition services for a period of time generally not to exceed eight months following the closing of the inMarket Transaction.

The historical financial results attributable to the Ads Business are presented as discontinued operations in our condensed consolidated statements of operations for all periods presented. A reconciliation of the major line items comprising loss from operations of the Ads Business included as part of discontinued operations to the amount presented separately in our condensed consolidated statement of operations for the three months ended September 30, 2019 is presented in the following table:


	Three Months Ended September 30, 2019
Revenue - services	$	3,614
Cost of revenue - services	1,335
Gross profit	2,279
Operating expenses:
Research and development	697
Sales and marketing	750
General and administrative	—
Total operating expenses	1,447
Provision for (benefit from) income taxes	—
Income from operations of Ads Business	$	832

Our 14.5%-member interest in inMarket was valued at $15.6 million at the closing of the inMarket Transaction and is recorded in other assets on our condensed consolidated balance sheet at September 30, 2020 and June 30, 2020. See Note 4. Our loss from the sale of the Ads Business of $4.8 million included $1.9 million comprising severance for Ads Business employees who were not offered employment with inMarket and acceleration of stock-based awards vesting for certain Ads Business executives who were not offered employment with inMarket, and $363,000 comprising legal fees and third-party consulting fees associated with the inMarket Transaction.

Sale of intellectual property and workforce	3 Months Ended
Sale of intellectual property and workforce	Sep. 30, 2020
Discontinued Operations and Disposal Groups [Abstract]
Sale of intellectual property and workforce	Sale of intellectual property and workforce In August 2019, we entered into certain agreements with affiliates of Grab, including: (i) a services agreement pursuant to which we agreed to provide certain services to Grab through certain of our employees designated to work on our OpenTerra Platform; (ii) a license agreement pursuant to which we granted to Grab a perpetual license to certain intellectual property associated with the OpenTerra Platform; and (iii) an asset purchase agreement pursuant to which we sold certain intellectual property associated with the OpenTerra Platform to Grab and facilitated offers for employment or consulting arrangements by Grab of certain of our OpenTerra employees. In January 2020, Grab completed the acquisition of assets pursuant to which we sold certain intellectual property associated with the OpenTerra Platform to Grab and facilitated the making of offers for employment or consulting arrangements by Grab to certain of our OpenTerra employees in exchange for a non-marketable equity interest in Grab Holdings, Inc. ordinary shares. We also received a perpetual, royalty-free license under the OpenTerra intellectual property rights assigned to Grab. Grab’s acquired workforce consisted of 59 of our employees. We recorded a $6.2 million non-marketable equity investment in Grab Holdings, Inc. (see Note 4) and an $800,000 capitalized software asset representing the perpetual license received, and we recognized an immaterial gain on the sale. The non-marketable equity investment and capitalized software are recorded in Other assets and Property and equipment net, respectively, on our condensed consolidated balance sheet.

Subsequent Events	3 Months Ended
Subsequent Events	Sep. 30, 2020
Subsequent Events [Abstract]
Subsequent events	Subsequent eventOn November 2, 2020, we entered into an Agreement and Plan of Merger (the “Merger Agreement”) with V99, a Delaware corporation (“V99”), led by HP Jin, President, Chief Executive Officer and Chair of our Board of Directors, and Telenav99, Inc., a Delaware corporation and wholly owned subsidiary of V99 (“Merger Sub”), providing for the merger of Merger Sub with and into Telenav (the “Merger”), with Telenav surviving the Merger as a wholly owned subsidiary of V99. The Merger Agreement provides that, at the effective time of the Merger, each share of common stock, par value $0.001 per share, of Telenav (“Company Common Stock”) issued and outstanding immediately prior to such (other than shares held in treasury, shares held by Dr. Jin, Mr. Chen, Digital Mobile Venture Limited and their affiliates (the “Purchaser Group”) and dissenting shares) will be cancelled and extinguished, and automatically converted into the right to receive cash in an amount equal to $4.80, without interest thereon (the “Merger Consideration”). The Merger Agreement also provides for the cancellation of out-of-the-money options; the conversion of in-the-money options to the right to receive the Merger Consideration less the applicable exercise price and withholding taxes; the conversion of unvested restricted stock units into the right to receive the Merger Consideration less applicable withholding taxes; and the cash out of vested restricted stock units for the Merger Consideration less applicable withholding taxes.

Summary of business and significant accounting policies (Policies)	3 Months Ended
	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of presentation	Basis of presentation The unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP. The condensed consolidated financial statements include the accounts of Telenav, Inc. and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The financial statements include all adjustments (consisting only of normal recurring adjustments) that our management believes are necessary for a fair presentation of the periods presented. These interim financial results are not necessarily indicative of results expected for the full fiscal year or for any subsequent interim period. Our condensed consolidated financial statements also include the financial results of Shanghai Jitu Software Development Ltd., or Jitu, located in China. Based on our contractual arrangements with the shareholders of Jitu, we have determined that Jitu is a variable interest entity, or VIE, for which we are the primary beneficiary and are required to consolidate in accordance with Accounting Standards Codification, or ASC, subtopic 810-10, or ASC 810-10, Consolidation: Overall. The results of Jitu did not have a material impact on our financial statements for the three months ended September 30, 2020 and 2019. The condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto for fiscal 2020, included in our Annual Report on Form 10-K for fiscal 2020 filed with the U.S. Securities and Exchange Commission, or SEC, on August 21, 2020, which we refer to as the Form 10-K.
Use of estimates	Use of estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Significant estimates and assumptions made by us include the determination of revenue recognition and deferred revenue, including estimating and allocating the transaction price of customer contracts, the recoverability of accounts receivable and short-term investments, the determination of the fair value of non-marketable debt and equity investments, the assessment of goodwill for impairment, the fair value of stock-based awards issued, the determination of income taxes and the recoverability of deferred tax assets. Actual results could differ from those estimates. In March 2020, the World Health Organization declared the outbreak of the novel coronavirus first identified in China in late 2019 (COVID-19) as a pandemic, which continues to spread throughout the U.S. and the world. The COVID-19 pandemic and related adverse public health developments have caused and will continue to cause disruption to the economy and our business operations resulting from shelter-at-home orders, quarantines, self-isolations, or other restrictions on the ability of our employees to perform their jobs. For example, our automotive manufacturer partners closed manufacturing plants in response to the COVID-19 pandemic and only re-opened them in the three months ended June 30, 2020 for production in North America and Europe. The extent of the impact of the COVID-19 pandemic on our operational and financial performance will depend on future developments, including the duration and spread of the outbreak, its severity, the actions to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating conditions can resume, all of which are uncertain and we cannot predict. During the three months ended September 30, 2020, this uncertainty resulted in a higher level of judgment related to our estimates and assumptions concerning short-term investments, long-lived assets, non-marketable equity and debt investments, goodwill, and variable consideration related to revenue recognition. We expect uncertainties around our key accounting estimates to continue to evolve depending on the duration and degree of impact associated with the COVID-19 pandemic. Our estimates may change as new events occur and additional information emerges, and such changes are recognized or disclosed in our condensed consolidated financial statements.
Contract assets	Contract assets Contract assets relate to our rights to consideration for performance obligations satisfied but not billed at the reporting date.
Recent accounting pronouncements	Recent accounting pronouncements not yet adopted There have been no other changes in accounting pronouncements during the three months ended September 30, 2020, as compared to the recent accounting pronouncements not yet adopted described in our Form 10-K, that are of significance or potential significance to us.

- Definition

Disclosure of accounting policy for revenue from contract with customer.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130566-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130563-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/topic&trid=49130388

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 18
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Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130564-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-Section 50
-Paragraph 20
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+ Details

Summary of business and significant accounting policies (Tables)

3 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of disaggregation of revenue


	Three Months Ended September 30,
	2020		2019
Product
On-board automotive navigation solutions (point in time)(1)	$	56,809	$	55,990
Total product revenue	56,809		55,990
Services
Brought-in automotive navigation solutions (over time)(2)	10,914		6,222
Automotive maintenance and support and other (over time)	90		1,669

Mobile navigation services (over time)	1,783		2,748
Total services revenue	12,787		10,639
Total revenue	$	69,596	$	66,629
(1)Includes i) royalties earned and recognized at the point in time usage occurs, ii) map updates and iii) customized software development fees.
(2)Includes royalties earned and recognized over time from the allocation of transaction price to service obligations for hybrid automotive solutions.

Changes in the balance of total deferred costs

Changes in the balance of total deferred costs (current and non-current) during the three months ended September 30, 2020 were as follows (in thousands):


	Deferred Costs
	Content		Development		Total
Balance, June 30, 2020	$	73,598	$	7,071	$	80,669
Content licensing costs incurred	33,136		—		33,136
Customized software development costs incurred	—		695		695
Less: cost of revenue recognized	(37,213)		(1,246)		(38,459)
Balance, September 30, 2020	$	69,521	$	6,520	$	76,041

Changes in the balance of total deferred revenue (current and non-current) during the three months ended September 30, 2020 were as follows (in thousands):


Beginning balance, June 30, 2020	$	138,943
Revenue recognized that was included in beginning balance	(18,986)
Amount billed, net of revenue recognized that was not included in beginning balance	13,573
Ending balance, September 30, 2020	$	133,530

Accumulated other comprehensive loss, net of tax

The components of accumulated other comprehensive loss, net of related taxes, and activity as of September 30, 2020, were as follows (in thousands):


	Foreign Currency Translation Adjustments		Unrealized Gains (Losses) on Available-for-Sale Securities		Total
Balance, net of tax as of June 30, 2020	$	(1,834)	$	1,357	$	(477)
Other comprehensive income (loss) before reclassifications, net of tax	360		(127)		233
Amount reclassified from accumulated other comprehensive loss, net of tax	—		(188)		(188)
Other comprehensive income (loss), net of tax	360		(315)		45
Balance, net of tax as of September 30, 2020	$	(1,474)	$	1,042	$	(432)

Net income (loss) per share (Tables)

3 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Schedule of calculation of basic and diluted net loss per share

The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share amounts):


	Three Months Ended September 30,
	2020		2019
Income from continuing operations	$	3,335	$	32
Loss on discontinued operations	—		(3,986)
Net income (loss)	$	3,335	$	(3,954)

Shares used to compute basic income (loss) per share	47,227		47,780
Dilutive potential common shares:
Stock options	—		527
Restricted stock units	577		1,341
Employee stock purchase plan	37		—
Shares used to compute diluted income (loss) per share	47,841		49,648
Basic income (loss) per share:
Income from continuing operations	$	0.07	$	—
Loss on discontinued operations	—		(0.08)
Net income (loss)	$	0.07	$	(0.08)
Diluted income (loss) per share:
Income from continuing operations	$	0.07	$	—
Loss on discontinued operations	—		(0.08)
Net income (loss)	$	0.07	$	(0.08)

Potential common stock equivalents not included in the calculation of diluted income (loss) per share as the effect would be anti-dilutive	1,856		5,026

Cash, cash equivalents and short-term investments (Tables)

3 Months Ended

Sep. 30, 2020

Cash, Cash Equivalents, and Short-term Investments [Abstract]

Schedule of cash, cash equivalents and short-term investments

Cash, cash equivalents and short-term investments consisted of the following as of September 30, 2020 (in thousands):


Description	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Cash	$	23,010	$	—	$	—	$	23,010
Cash equivalents:
Money market mutual funds	5,303		—		—		5,303