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Cover Document and Entity Information Notes to Financial Statements Major Clients Employee Stock Purchase Plan Notes Details Operating Leases (Details Narrative) Uncategorized Uncategorized Items - strea-20200131.xml All Reports Rendering Log

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Jan. 31, 2020	Apr. 15, 2020	Jul. 31, 2019
Cover [Abstract]
Entity Registrant Name	STREAMLINE HEALTH SOLUTIONS INC.
Entity Central Index Key	0001008586
Document Type	10-K
Document Period End Date	Jan. 31, 2020
Amendment Flag	false
Current Fiscal Year End Date	--01-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business Flag	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 23,263,695
Entity Common Stock, Shares Outstanding		30,914,826
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2019

Employee Stock Purchase Plan

12 Months Ended

Jan. 31, 2020

Notes to Financial Statements

Employee Stock Purchase Plan

NOTE 10 — EMPLOYEE STOCK PURCHASE PLAN

Though December 2019, the Company had an Employee Stock Purchase Plan under which associates were able to purchase up to 1,000,000 shares of common stock. Under the plan, eligible associates could elect to contribute, through payroll deductions, up to 10% of their base pay to a trust during any plan year, i.e., January 1 through December 31 of the same year. Semi-annually, typically in January and July of each year, the plan issued, for the benefit of the employees, shares of common stock at the lesser of (a) 85% of the fair market value of the common stock on the first day of the vesting period (January 1 or July 1), or (b) 85% of the fair market value of the common stock on the last day of the vesting period (June 30 or December 31 of the same year).

The Company recognized compensation expense of $4,000 for fiscal years 2019 and 2018 under this plan.

During fiscal 2019, 5,072 shares were purchased at the price of $0.75 per share and 3,238 shares were purchased at the price of $1.18 per share; during fiscal 2018, 13,339 shares were purchased at the price of $0.69 per share and 10,370 shares were purchased at the price of $1.20 per share. The cash received for shares purchased from the plan was $8,000 and $22,000 in fiscal 2019 and 2018, respectively.

Effective January 1, 2020, the Company discontinued its Employee Stock Purchase Plan.

Label

Element

Value

Other Operating Costs

strea_OtherOperatingCostsPolicyTextBlock

Other Operating Costs

Executive Transition Costs

We recorded $789,000 in cost related to replacing the Company’s CEO in the fiscal year ended January 31, 2020. These costs, which include placement fees, retention bonuses for existing key personnel and certain required consulting costs. Each of these costs are directly attributable to the successful placement of our new CEO with the Company.

Rationalization Charges

In the fourth quarter of fiscal 2019, we implemented a rationalization plan to make the operation of the Company more efficient and for the purpose of aligning its personnel needs and capital requirements with the sale of the ECM Assets. The rationalization plan included a reduction in workforce of approximately twenty (20) employees, or approximately twenty percent (20%) of the Company’s total workforce. As a result of the rationalization plan, the Company recorded $388,000 in one-time severance and other employee termination-related costs that has been accrued for within accrued expenses and will paid in fiscal 2020. The Company is not currently aware of any other significant charges it will incur as a result of the rationalization plan.

Transaction Costs

The Company incurred costs to (i) sell the ECM Assets and (ii) account for the immaterial correction of an error in the third quarter ended October 31, 2019. In the sale of the ECM Assets, the Company incurred approximately $631,000 of cost from its financial adviser, legal cost and certain consulting costs that were not conditioned upon the successful sale of the ECM Assets. These costs were accrued as of January 31, 2020. The Company incurred approximately $1,300,000 of additional transaction cost that were incurred or conditioned upon closing the sale of the ECM Assets that are recorded in February 2020 (the date of closing the ECM Assets). Separately, the Company incurred approximately $230,000 of legal and accounting cost in conjunction with the company’s immaterial correction of an error (See above in this Note). These costs were necessary to file the Company’s third quarter, 10-Q, for the period ended October 30, 2019 and this was completed on January 8, 2020.

Impairment of Long-Lived Assets

The Company acquired a product known as Clinical Analytics in its portfolio in October 2013. As a result of its focused attention in the marketplace on the middle of the revenue cycle, the Company moved away from selling the product. The Company identified a triggering event in the fourth quarter of fiscal 2018 for impairment of long-lived asset associated with Clinical Analytics. The Company sole customer on Clinical Analytics terminated its contract. Upon review, the Company has determined that the market for Clinical Analytics and for the middle of the revenue cycle are very different, and accordingly, the Company does not anticipate or forecast future sales for this product. The Company has determined that intangible assets and remaining software development associated with Clinical Analytics were fully impaired and should be removed from its balance sheet. In the fourth quarter of fiscal 2018, we took a charge to income of $3,681,000 for impairment of the long-lived intangible assets ($3,226,000) and the remaining software development costs ($455,000) associated with this product. The Company has no other intangible assets or software development that is not associated with its core solutions in the middle of the revenue cycle.

Loss on Exit of Operating Lease

In an effort to reduce ongoing operating expenses, we closed our New York office in the second quarter of fiscal 2018 and subleased the office space for the remaining period of the original lease term, which ended on November 2019. As a result of vacating and subleasing the office, we recorded a $472,000 loss on exit of the operating lease in the second quarter of fiscal 2018, which captures the net cash flows associated with the vacated premises, including receipts of rent from our sublessee totaling $384,000, and the $48,000 loss incurred on the disposal of fixed assets. In addition, in the third quarter of fiscal 2018, we assigned our then current Atlanta office lease that would have expired in November 2022 and entered into a membership agreement to occupy shared office space in Atlanta. As a result of assigning the office lease, we recorded a $562,000 loss on exit of the operating lease in fiscal 2018.

Beneficial conversion feature of preferred stock

strea_BeneficialConversionFeatureOfPreferredStock

$ 2,021,000

Coverage ratio description

strea_CoverageRatioDescription

The Loan and Security Agreement, as amended, includes financial covenants, including requirements that the Company maintain a minimum asset coverage ratio and certain other financial covenants, including requirements that the Company shall not deviate by more than fifteen percent its revenue projections over a trailing three-month basis or the Company's recurring revenue shall not deviate by more than twenty percent over a cumulative year-to-date basis of its revenue projections. In addition, beginning on December 31, 2019, the Company's Bank EBITDA, measured on a monthly basis over a trailing three-month period then ended, shall not deviate by the greater of thirty percent its projected Bank EBITDA or $150,000. The agreement also requires the Company to maintain a minimum Asset Coverage Ratio. The Asset Coverage Ratio is determined based on the ratio of unrestricted cash plus certain accounts that arise in the ordinary course the Company's business divided by all outstanding obligations to the bank. Pursuant to the terms of the new Loan and Security Agreement, the Company is required to maintain a minimum Asset Coverage Ratio of at least 0.75 to 1.00 from December 31, 2019 through November 30, 2020 and a minimum Asset Coverage Ratio of at least 1.50 to 1.00 each month thereafter. The Company was in compliance with the asset coverage ratio covenant, however, was not compliant with the EBITDA covenant, as described above. An appropriate waiver was received by Bridge Bank for the covenant violation as of January 31, 2020.

Royalty Liability, Noncurrent

strea_RoyaltyLiabilityNoncurrent

Royalty Liability, Noncurrent

strea_RoyaltyLiabilityNoncurrent

905,000

Redemption payment amount

strea_RedemptionPaymentAmount

5,813,000

Recognized revenue from deferred revenue

strea_RecognizedRevenueFromDeferredRevenue

$ 7,838,000

Rationalization charges description

strea_RationalizationChargesDescription

The rationalization plan included a reduction in workforce of approximately twenty (20) employees, or approximately twenty percent (20%) of the Company's total workforce. As a result of the rationalization plan, the Company recorded $388,000 in one-time severance and other employee termination-related costs that has been accrued for within accrued expenses and will paid in fiscal 2020.

Royalty liability

strea_RoyaltyLiabilityCurrent

$ 969,000

Royalty liability

strea_RoyaltyLiabilityCurrent

Deferred costs, net of accumulated amortization

strea_DeferredCostsNetOfAccumulatedAmortization

332,000

Deferred costs, net of accumulated amortization

strea_DeferredCostsNetOfAccumulatedAmortization

399,000

Redemption of Series A Convertible Preferred Stock

strea_RedemptionOfSeriesConvertiblePreferredStock

(5,791,000)

Deferred tax assets: Accruals

strea_DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsAccruedLiabilitiesCurrent

45,000

Deferred tax assets: Accruals

strea_DeferredTaxAssetsTaxDeferredExpenseReservesAndAccrualsAccruedLiabilitiesCurrent

$ 141,000

Number of options to purchase common stock

strea_NumberOfOptionsToPurchaseCommonStock

673,603

Number of options to purchase common stock

strea_NumberOfOptionsToPurchaseCommonStock

1,355,657

Direct cost with redemption

strea_DirectCostWithRedemption

$ 22,000

Schedule of Bad Debt Expenses

strea_ScheduleOfBadDebtExpensesTableTextBlock

Bad debt expense for fiscal years 2019 and 2018 was as follows:

		2019				2018
Bad debt expense		$	(201,000	)		$	13,000

Modification of royalty liability associated with the acquisition of Clinical Analytics

strea_ModificationOfRoyaltyLiabilityAssociatedWithAcquisitionOfClinicalAnalytics

Modification of royalty liability associated with the acquisition of Clinical Analytics

strea_ModificationOfRoyaltyLiabilityAssociatedWithAcquisitionOfClinicalAnalytics

$ 1,644,000

Surrender of stock, shares

strea_SurrenderOfStockSharesDuringPeriod

(75,487)

Surrender of stock, shares

strea_SurrenderOfStockSharesDuringPeriod

(37,249)

Restricted stock forfeited

strea_RestrictedStockForfeitedDuringPeriod

Restricted stock forfeited

strea_RestrictedStockForfeitedDuringPeriod

Restricted stock forfeited

strea_RestrictedStockForfeitedDuringPeriod

(6,000)

Restricted stock forfeited

strea_RestrictedStockForfeitedDuringPeriod

(1,000)

Restricted stock forfeited

strea_RestrictedStockForfeitedDuringPeriod

6,000

Restricted stock forfeited

strea_RestrictedStockForfeitedDuringPeriod

1,000

Restricted stock forfeited

strea_RestrictedStockForfeitedDuringPeriod

Restricted stock forfeited

strea_RestrictedStockForfeitedDuringPeriod

Forfeiture rate

strea_ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedForfeitureRate

29.00%

Forfeiture rate

strea_ShareBasedCompensationArrangementByShareBasedPaymentAwardFairValueAssumptionsExpectedForfeitureRate

20.00%

Surrender of stock

strea_SurrenderOfStockduringPeriodValue

$ (99,000)

Surrender of stock

strea_SurrenderOfStockduringPeriodValue

(62,000)

Surrender of stock

strea_SurrenderOfStockduringPeriodValue

(1,000)

Surrender of stock

strea_SurrenderOfStockduringPeriodValue

Surrender of stock

strea_SurrenderOfStockduringPeriodValue

(98,000)

Surrender of stock

strea_SurrenderOfStockduringPeriodValue

(62,000)

Surrender of stock

strea_SurrenderOfStockduringPeriodValue

Surrender of stock

strea_SurrenderOfStockduringPeriodValue

Deferred costs, amortization expense

strea_DeferredCostsAmortizationExpenses

237,000

Deferred costs, amortization expense

strea_DeferredCostsAmortizationExpenses

$ 346,000

Term of licensing agreement

strea_TermOfLicensingAgreement

15 years

Capital contribution

strea_CapitalContributionAdjustedToAdditionalPaidInCapital

$ 16,000

Capital contribution

strea_CapitalContributionAdjustedToAdditionalPaidInCapital

Capital contribution

strea_CapitalContributionAdjustedToAdditionalPaidInCapital

16,000

Capital contribution

strea_CapitalContributionAdjustedToAdditionalPaidInCapital

Description of loan program

strea_DescriptionOfLoanProgram

The Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, was signed into law on March 17, 2020. Among other things, the Cares Act provided for a business loan program known as the Paycheck Protection Act ("PPP"). Companies are able to borrow, through the SBA, up to two months of payroll. The Company has filed for approximately $2,300,000 through the SBA for the PPP loan program. The Company has not signed definitive debt agreements, nor has it been notified of funding as it relates to this program.

Cost of software as a service

strea_CostOfSoftwareAsService

$ 1,415,000

Cost of software as a service

strea_CostOfSoftwareAsService

992,000

strea_FiniteLivedIntangibleAssetsAmortizationExpenseCurrentYear

491,000

Amortization of other deferred costs

strea_ImpairmentLossOnCapitalizedSoftwareDevelopmentCost

480,000

Amortization of other deferred costs

strea_ImpairmentLossOnCapitalizedSoftwareDevelopmentCost

415,000

Fees paid for redemption of Series A Convertible Preferred Stock

strea_FeesPaidForRedemptionOfSeriesConvertiblePreferredStock

(22,000)

Minimum commitment for additional royalty payments

strea_MinimumCommitmentForAdditionalRoyaltyPayments

$ 3,000,000

Term of maintenance and service

strea_TermOfMaintenanceAndService

24 months

Proceeds from exercise of stock options and stock purchase plan

strea_ProceedsFromExerciseOfStockOptionsAndStockPurchasePlan

$ 8,000

Proceeds from exercise of stock options and stock purchase plan

strea_ProceedsFromExerciseOfStockOptionsAndStockPurchasePlan

44,000

One-time initial base royalty fee

strea_OnetimeInitialBaseRoyaltyFee

$ 3,000,000

Unvested restricted shares of common stock

strea_UnvestedRestrictedSharesOfCommonStock

803,498

Unvested restricted shares of common stock

strea_UnvestedRestrictedSharesOfCommonStock

1,063,866

Expire date description

strea_ExpireDateDescription

Expire through fiscal 2039.

Return from the preferred stockholders

strea_ReturnFromPreferredStockholders

$ 4,894,000

Period of time over which additional royalty payments are to be made

strea_TermOfAdditionalRoyaltyPayments

6 years 6 months

Amortization expense with deferred sales comissions

strea_AmortizationExpenseWithDeferredSalesComissions

$ 161,000

Amortization expense with deferred sales comissions

strea_AmortizationExpenseWithDeferredSalesComissions

145,000

RoyaltyLiabilityFairValueDisclosure

strea_RoyaltyLiabilityFairValueDisclosure

969,000

^[1]

RoyaltyLiabilityFairValueDisclosure

strea_RoyaltyLiabilityFairValueDisclosure

905,000

^[1]

RoyaltyLiabilityFairValueDisclosure

strea_RoyaltyLiabilityFairValueDisclosure

^[1]

RoyaltyLiabilityFairValueDisclosure

strea_RoyaltyLiabilityFairValueDisclosure

^[1]

RoyaltyLiabilityFairValueDisclosure

strea_RoyaltyLiabilityFairValueDisclosure

969,000

^[1]

RoyaltyLiabilityFairValueDisclosure

strea_RoyaltyLiabilityFairValueDisclosure

^[1]

RoyaltyLiabilityFairValueDisclosure

strea_RoyaltyLiabilityFairValueDisclosure

^[1]

RoyaltyLiabilityFairValueDisclosure

strea_RoyaltyLiabilityFairValueDisclosure

905,000

^[1]

Legal and accounting cost

strea_LegalAndAccountingCost

230,000

Proceeds from term loan

strea_ProceedsFromLoan

4,000,000

Proceeds from term loan

strea_ProceedsFromLoan

Annual contribution per employee, percent

strea_AnnualContributionPerEmployeePercent

10.00%

Rationalization charges

strea_RationalizationCharges

$ 388,000

Rationalization charges

strea_RationalizationCharges

Rationalization charges

strea_RationalizationCharges

388,000

Expiring carryforwards

strea_IncomeTaxReconciliationNondeductibleExpenseExpiringCarryforwards

463,000

Expiring carryforwards

strea_IncomeTaxReconciliationNondeductibleExpenseExpiringCarryforwards

1,965,000

Cost of audit services

strea_CostOfAuditServices

1,255,000

Cost of audit services

strea_CostOfAuditServices

$ 1,373,000

Allowance for Doubtful Accounts

strea_AllowanceForDoubtfulAccountsPolicyTextBlock

Allowance for Doubtful Accounts

The Company adjusts accounts receivable down to net realizable value with its allowance methodology. In determining the allowance for doubtful accounts, aged receivables are analyzed periodically by management. Each identified receivable is reviewed based upon the most recent information available and the status of any open or unresolved issues with the client preventing the payment thereof. Corrective action, if necessary, is taken by the Company to resolve open issues related to unpaid receivables. During these periodic reviews, the Company determines the required allowances for doubtful accounts for estimated losses resulting from the unwillingness or inability of its clients or resellers to make required payments. The allowance for doubtful accounts was approximately $96,000 and $345,000 at January 31, 2020 and 2019, respectively. The Company believes that its reserve is adequate, however results may differ in future periods.

Bad debt expense for fiscal years 2019 and 2018 was as follows:

		2019				2018
Bad debt expense		$	(201,000	)		$	13,000

Concession accrual amount

strea_ConcessionAccrualAmount

$ 43,000

Concession accrual amount

strea_ConcessionAccrualAmount

$ 44,000

Stock options plan, description

strea_StockOptionsPlanDescription

Under the 2013 Plan, the Company is authorized to issue a number of shares not to exceed (i) 3,300,000 plus (ii) the number of shares remaining available for issuance under the 2005 Plan as of the date the 2005 Plan was replaced, plus (iii) the number of shares that become available under the 2005 Plan pursuant to forfeiture, termination, lapse, or satisfaction of a 2005 Plan award in cash or property other than shares of common stock. The options granted under the 2013 Plan and 2005 Plan have terms of ten years or less, and typically vest and become fully exercisable ratably over three years of continuous service to the Company from the date of grant.

Immaterial Correction of Errors

strea_ImmaterialCorrectionOfErrorsPolicyTextBlock

Immaterial Correction of Errors

In connection with the preparation of the Company’s financial statements for the third quarter ended October 31, 2019, the Company discovered certain errors in “Capitalized software development costs” and related amortization expense for previous periods. The errors resulted from (i) assets that did not begin to be amortized timely, and (ii) an incorrect method of amortizing the assets.

The assets that did not begin amortizing timely resulted from an administrative error, while the incorrect method of amortization was related to a misapplication of GAAP. Certain general release documentation was not prepared timely, and distributed, and, accordingly, the Company did not place certain enhancements into service and begin amortization.

Further, the Company has corrected its underlying financial records to utilize the “carry-over” method for amortizing capitalized software development cost. Under the “carry-over” method, the costs of the enhancements are added to the unamortized costs of the previous version of the product and the combined amount is amortized over the remaining useful life of the product. Including unamortized cost of the original product with the cost of the enhancement for purposes of applying the net realizable value test and amortization provisions is consistent with accounting guidance for software companies that improve their software and discontinue selling or marketing the older versions. While this method reduced amortization of the underlying assets, the Company’s evaluation of the net book value of the underlying software development assets in relation to net realizable value and future cash flows each period ensured the carrying value was not in excess of the net realizable value of a solution for any period. Further, in accordance with guidance for software companies under Accounting Standards Codification (“ASC”) 985, the Company ensures that amortization is the greater of (i) the ratio of the software product’s current gross revenues to the total of current and expected gross revenues or (ii) straight-line over the remaining economic useful life of the software. The Company continues to monitor its estimated useful life on the underlying products, taking into consideration the product, the market and the industry.

The two corrections relating to the amortization of capitalized software development costs off-set one another in certain previous periods. Additionally, the differences between (i) the amounts calculated, as adjusted for these corrections, and (ii) the amount recorded in previous periods substantially self-corrected by the end of the third quarter, October 31, 2019. The Company, in consultation with the Audit Committee of the Board of Directors, evaluated the effect of these adjustments on the Company’s financial statements under ASC 250: Accounting Changes and Error Corrections and Staff Accounting Bulletin No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements and determined it was not necessary to restate its previously issued financial statements, or unaudited interim period financial statements, because the errors did not materially misstate any previously issued financial statements and the correction of the errors in the current fiscal year is also not material. The Company looked at both quantitative and qualitative characteristics of the required corrections.

The net impact of these errors resulted in a $532,000 overstatement and a corresponding $532,000 understatement of amortization expense for capitalized software development costs for the years ended January, 31 2020 and 2019, respectively. The Company’s previously reported amortization expense for capitalized software development costs was misstated by the following amounts:

		Overstatement /
		(Understatement) of
Period		Amortization Expense
Prior to fiscal year ended January 31, 2019		$	532,000
Three months ended April 30, 2019		$	(153,000	)
Three months ended July 31, 2019		$	(165,000	)
Three months ended October 31, 2019		$	(214,000	)

Cost of system sales

strea_CostOfSystemSales

$ 1,022,000

Cost of system sales

strea_CostOfSystemSales

$ 942,000

strea_EquityAwardsPolicyTextBlock

Equity Awards

The Company accounts for share-based payments based on the grant-date fair value of the awards with compensation cost recognized as expense over the requisite service period. The Company incurred total annual compensation expense related to stock-based awards of $934,000 and $629,000 in fiscal 2019 and 2018, respectively.

The fair value of the stock options granted in fiscal 2019 and 2018 was estimated at the date of grant using a Black-Scholes option pricing model. Option pricing model input assumptions such as expected term, expected volatility and risk-free interest rate impact the fair value estimate. Further, the forfeiture rate impacts the amount of aggregate compensation. These assumptions are subjective and are generally derived from external (such as, risk-free rate of interest) and historical data (such as, volatility factor, expected term and forfeiture rates). Future grants of equity awards accounted for as stock-based compensation could have a material impact on reported expenses depending upon the number, value and vesting period of future awards.

The Company issues restricted stock awards in the form of Company common stock. The fair value of these awards is based on the market close price per share on the grant date. The Company expenses the compensation cost of these awards as the restriction period lapses, which is typically a one- to four-year service period to the Company. In fiscal 2019 and 2018, 75,487 and 37,249 shares of common stock were surrendered to the Company to satisfy tax withholding obligations totaling $99,000 and $62,000, respectively, in connection with the vesting of restricted stock awards. Shares surrendered by the restricted stock award recipients in accordance with the applicable plan are deemed canceled, and therefore are not available to be reissued. The Company awarded 862,518 and 501,666 shares of restricted stock to officers and directors of the Company in fiscal 2019 and 2018, respectively.

Recognized fair value adjustments

strea_RecognizedFairValueAdjustments

$ 64,000

Recognized fair value adjustments

strea_RecognizedFairValueAdjustments

126,000

Carrying amount of net of issuance costs

strea_CarryingAmountOfNetOfIssuanceCosts

$ 8,686,000

Employee stock purchase plan, description

strea_EmployeeStockPurchasePlanDescription

Under the plan, eligible associates could elect to contribute, through payroll deductions, up to 10% of their base pay to a trust during any plan year, i.e., January 1 through December 31 of the same year. Semi-annually, typically in January and July of each year, the plan issued, for the benefit of the employees, shares of common stock at the lesser of (a) 85% of the fair market value of the common stock on the first day of the vesting period (January 1 or July 1), or (b) 85% of the fair market value of the common stock on the last day of the vesting period (June 30 or December 31 of the same year).

Remaining software development costs

strea_RemainingSoftwareDevelopmentCosts

$ 455,000

Basis of Presentation

strea_BasisOfPresentationPolicyTextBlock

Basis of Presentation

The consolidated financial statements include the accounts of Streamline Health Solutions, Inc. and its wholly-owned subsidiary, Streamline Health, Inc. All significant intercompany transactions and balances are eliminated in consolidation. All amounts in the consolidated financial statements, notes and tables have been rounded to the nearest thousand dollars, except share and per share amounts, unless otherwise indicated.

Permanent items: Incentive stock options

strea_IncomeTaxReconciliationIncomeTaxExpensePermanentItemsIncentiveStockOptions

$ 8,000

Permanent items: Incentive stock options

strea_IncomeTaxReconciliationIncomeTaxExpensePermanentItemsIncentiveStockOptions

18,000

Minimum fees due under shared office arrangement

strea_MinimumFeesDueUnderSharedOfficeArrangement

130,000

Effect of dilutive securities - Stock options, Restricted stock and Series A Convertible Preferred Stock

strea_EffectOfDilutiveSecuritiesStockOptionsRestrictedStockAndSeriesConvertiblePreferredStock

^[2]

Effect of dilutive securities - Stock options, Restricted stock and Series A Convertible Preferred Stock

strea_EffectOfDilutiveSecuritiesStockOptionsRestrictedStockAndSeriesConvertiblePreferredStock

^[2]

Executive transition cost

strea_ExecutiveTransitionCost

789,000

Executive transition cost

strea_ExecutiveTransitionCost

Schedule of Amortization Expense For Internally developed Software

strea_ScheduleOfAmortizationExpenseForInternallyDevelopedSoftwareTableTextBlock

There were no impairments recognized during fiscal 2018.

		Fiscal Year
		2019				2018
Amortization expense on internally-developed software included in:
Cost of systems sales		$	928,000			$	768,000
Cost of software as a service			517,000				379,000
Cost of audit services			13,000				13,000
Total amortization expense on internally-developed software		$	1,458,000			$	1,160,000

Cash payment due per royalty agreement

strea_CashPaymentDuePerRoyaltyAgreement

$ 1,000,000

Amortization Expense

strea_AmortizationExpense

532,000

Amortization Expense

strea_AmortizationExpense

(153,000)

Amortization Expense

strea_AmortizationExpense

(165,000)

Amortization Expense

strea_AmortizationExpense

(214,000)

Cost of professional services

strea_CostOfProfessionalServices

2,103,000

Cost of professional services

strea_CostOfProfessionalServices

2,657,000

Cumulative effect of ASC 606 implementation

strea_CumulativeEffectOfImplementation

1,440,000

Cumulative effect of ASC 606 implementation

strea_CumulativeEffectOfImplementation

Cumulative effect of ASC 606 implementation

strea_CumulativeEffectOfImplementation

Cumulative effect of ASC 606 implementation

strea_CumulativeEffectOfImplementation

$ 1,440,000

Concessions Accrual

strea_ConcessionsAccrualPolicyTextBlock

Concessions Accrual

In determining the concessions accrual, the Company evaluates historical concessions granted relative to revenue. The company records a provision, reducing revenue, each period for the estimated amount of concessions incurred. The Company evaluates the amount of the provision and the concession accrual each period. The concession accrual included in accrued other expenses on the Company’s consolidated balance sheets was $43,000 and $44,000 as of January 31, 2020 and 2019, respectively.

Transaction costs

strea_TransactionCosts

$ 861,000

Transaction costs

strea_TransactionCosts

Decrease in valuation allowance

strea_DecreaseInValuationsAllowance

(178,000)

Decrease in valuation allowance

strea_DecreaseInValuationsAllowance

(767,000)

Cost of maintenance and support

strea_CostOfMaintenanceAndSupport

1,685,000

Cost of maintenance and support

strea_CostOfMaintenanceAndSupport

$ 2,173,000

Schedule of Amortization Expense For Capitalized Software development

strea_ScheduleOfAmortizationExpenseForCapitalizedSoftwareDevelopmentTableTextBlock

The Company’s previously reported amortization expense for capitalized software development costs was misstated by the following amounts:

		Overstatement /
		(Understatement) of
Period		Amortization Expense
Prior to fiscal year ended January 31, 2019		$	532,000
Three months ended April 30, 2019		$	(153,000	)
Three months ended July 31, 2019		$	(165,000	)
Three months ended October 31, 2019		$	(214,000	)

Schedule of Adjustment to Net Income (Loss) Attributable to Common Stockholders

strea_ScheduleOfAdjustmentToNetIncomeLossAttributableToCommonStockholdersTableTextBlock

Balance at January 31, 2019		$	8,686,000
Redemption of Series A Convertible Preferred Stock			(5,791,000	)
Fees paid for redemption of Series A Convertible Preferred Stock			(22,000	)
Previously recognized beneficial conversion feature			2,021,000
Return from the preferred stockholders		$	4,894,000

Decrease in the valuation allowance

strea_DecreaseInValuationAllowance

$ 143,000

Payments for Fees for Redemption of Preferred Stock

strea_PaymentsForFeesForRedemptionOfPreferredStock

22,000

Payments for Fees for Redemption of Preferred Stock

strea_PaymentsForFeesForRedemptionOfPreferredStock

Weighted average grant date fair value of options granted

strea_WeightedAverageGrantDateFairValueOfOptionsGranted

$ 0.72

Weighted average grant date fair value of options granted

strea_WeightedAverageGrantDateFairValueOfOptionsGranted

$ 1.03

121G Consulting, LLC [Member]

Executive transition cost

strea_ExecutiveTransitionCost

$ 88,000

[1]

The fair value of the royalty liability was determined based on discounting the portion of the modified royalty commitment payable in cash (refer to Note 12 – Commitments and Contingencies for additional information on our royalty liability). During fiscal 2019 and 2018, the Company recognized fair value adjustments of $64,000 and $126,000, respectively. There were no changes to the fair value methods. Fair value adjustments are included within miscellaneous expense in the consolidated statements of operations.

[2]

Diluted net loss per share excludes the effect of shares that are anti-dilutive. As of January 31, 2020, there were zero outstanding shares of Series A Convertible Preferred Stock, 798,603 outstanding stock options and 803,498 unvested restricted shares of common stock. As of January 31, 2019, there were 2,895,464 shares of Series A Convertible Preferred Stock, 1,580,657 outstanding stock options and 1,063,866 unvested restricted shares of common stock.