Future revenue related to unsatisfied performance obligations

[Table of Contents](#i3e760ad3c5f94c5892b7ddc949ade806_7)Transaction Price Allocated to Remaining Performance ObligationsAs of June 30, 2022, estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period totaled $5,659,080. The Company expects to recognize approximately 26% over the next 12 months, 20% in 13 - 24 months, and the balance thereafter.Contract CostsThe Company incurs incremental costs to obtain a contract as well as costs to fulfill contracts with customers that are expected to be recovered. These costs consist primarily of sales commissions, which are incurred only if a contract is obtained, and customer conversion or implementation-related costs. Capitalized costs are amortized based on the transfer of goods or services to which the asset relates, in line with the percentage of revenue recognized for each performance obligation to which the costs are allocated. Capitalized costs totaled $380,095 and $314,807, at June 30, 2022 and 2021, respectively.During the fiscal years ended June 30, 2022, 2021, and 2020, amortization of deferred contract costs totaled $133,174, $122,143, and $117,763, respectively. There were no impairment losses in relation to capitalized costs for the periods presented.  
NOTE 3.    FAIR VALUE OF FINANCIAL INSTRUMENTSFor cash equivalents, certificates of deposit, amounts receivable or payable, and short-term borrowings, fair values approximate carrying value, based on the short-term nature of the assets and liabilities. The Company's estimates of the fair value for financial assets and financial liabilities are based on the framework established in the fair value accounting guidance. The framework is based on the inputs used in valuation, gives the highest priority to quoted prices in active markets, and requires that observable inputs be used in the valuations when available. The three levels of the hierarchy are as follows:Level 1: inputs to the valuation are quoted prices in an active market for identical assets.Level 2: inputs to the valuation include quoted prices for similar assets in active markets that are observable either directly or indirectly.Level 3: valuation is based on significant inputs that are unobservable in the market and the Company's own estimates of assumptions that we believe market participants would use in pricing the asset.Fair value of financial assets included in current assets is as follows:  


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|  |  | Estimated Fair Value Measurements |  | Total Fair |
|   |  | Level 1 |  | Level 2 |  | Level 3 |  | Value |
| June 30, 2022 |  |   |  |  |  |   |  |   |
| Financial Assets: |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |
| Certificates of Deposit |  | $ | —  |  |  | $ | 1,212  |  |  | $ | —  |  |  | $ | 1,212  |  |
| Financial Liabilities: |  |  |  |  |  |  |  |  |
| Revolving credit facility |  | $ | —  |  |  | $ | 115,000  |  |  | $ | —  |  |  | $ | 115,000  |  |
| June 30, 2021 |  |   |  |  |  |   |  |   |
| Financial Assets: |  |  |  |  |  |  |  |  |
| Certificates of Deposit |  | $ | —  |  |  | $ | 1,200  |  |  | $ | —  |  |  | $ | 1,200  |  |
|  |  |  |  |  |  |  |  |  |
| Financial Liabilities: |  |  |  |  |  |  |  |  |
| Revolving credit facility |  | $ | —  |  |  | $ | 100,000  |  |  | $ | —  |  |  | $ | 100,000  |  |

  
NOTE 4.    LEASESThe Company adopted ASU 2016-02 and its related amendments (collectively known as “ASC 842”) on July 1, 2019 using the optional transition method in ASU 2018-11. Therefore, the reported results for fiscal years ended June 30, 2022, 2021, and 2020 reflect the application of ASC 842.The Company determines if an arrangement is a lease, or contains a lease, at inception. The lease term begins on the commencement date, which is the date the Company takes possession of the property and may include options 46
