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SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Mar. 31, 2017

Accounting Policies [Abstract]

Principles of Consolidation

The financial statements presented herein reflect the consolidated financial position of Park City Group, Inc. and subsidiaries.  All inter-company transactions and balances have been eliminated in consolidation.

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that materially affect the amounts reported in the consolidated financial statements.  Actual results could differ from these estimates.  The methods, estimates and judgments the Company uses in applying its most critical accounting policies have a significant impact on the results it reports in its financial statements.  The Securities and Exchange Commission has defined the most critical accounting policies as those that are most important to the portrayal of the Company’s financial condition and results, and require the Company to make its most difficult and subjective judgments, often as a result of the need to make estimates of matters that are inherently uncertain.  Based on this definition, the Company’s most critical accounting policies include:  income taxes, goodwill and other long-lived asset valuations, revenue recognition, stock-based compensation, and capitalization of software development costs.

Earnings Per Share

 Basic net income or loss per common share (“Basic EPS ”) excludes dilution and is computed by dividing net income or loss by the weighted average number of common shares outstanding during the period.  Diluted net income or loss per common share (“Diluted EPS ”) reflects the potential dilution that could occur if stock options or other contracts to issue shares of common stock were exercised or converted into common stock.  The computation of Diluted EPS does not assume exercise or conversion of securities that would have an anti-dilutive effect on net income (loss) per common share.

 For the nine months ended March 31, 2016, warrants to purchase approximately 1,417,000 shares of common stock, were not included in the computation of diluted EPS due to the anti-dilutive effect.  Such warrants were outstanding at prices ranging from $3.50 to $10.00 per share.

The following table presents the components of the computation of basic and diluted earnings per share for the periods indicated:

		Three Months Ended								Nine Months Ended
		March 31,								March 31,
		2017				2016				2017				2016
Numerator
Net income (loss) applicable to common shareholders		$	699,414			$	118,480			$	2,309,943			$	(377,577	)
Denominator
Weighted average common shares outstanding, basic			19,390,164				19,196,000				19,331,216				19,128,000
Warrants to purchase common stock			962,451				767,000				178,854				-
Weighted average common shares outstanding, diluted			20,352,615				19,963,000				19,510,070				19,128,000
Net income (loss) per share
Basic		$	0.04			$	0.01			$	0.12			$	(0.02	)
Diluted		$	0.03			$	0.01			$	0.12			$	(0.02	)

Reclassifications

Certain prior-year amounts have been reclassified to conform with the current year's presentation.

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Disclosure of accounting policy regarding (1) the principles it follows in consolidating or combining the separate financial statements, including the principles followed in determining the inclusion or exclusion of subsidiaries or other entities in the consolidated or combined financial statements and (2) its treatment of interests (for example, common stock, a partnership interest or other means of exerting influence) in other entities, for example consolidation or use of the equity or cost methods of accounting. The accounting policy may also address the accounting treatment for intercompany accounts and transactions, noncontrolling interest, and the income statement treatment in consolidation for issuances of stock by a subsidiary.

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Disclosure of accounting policy for computing basic and diluted earnings or loss per share for each class of common stock and participating security. Addresses all significant policy factors, including any antidilutive items that have been excluded from the computation and takes into account stock dividends, splits and reverse splits that occur after the balance sheet date of the latest reporting period but before the issuance of the financial statements.

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The entire disclosure for classifying current financial statements, which may be different from classifications in the prior year's financial statements. Disclose any material changes in classification including an explanation of the reason for the change and the areas impacted.

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Disclosure of accounting policy for the use of estimates in the preparation of financial statements in conformity with generally accepted accounting principles.

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