Annual report pursuant to Section 13 and 15(d)

Revisions of Financial Statements for the Fiscal Quarters during Fiscal Years 2019 and 2018

v3.19.2
Revisions of Financial Statements for the Fiscal Quarters during Fiscal Years 2019 and 2018
 12 Months Ended
Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Revisions of Financial Statements for the Fiscal Quarters during Fiscal Years 2019 and 2018

Note 9 – Revisions of Financial Statements for the Fiscal Quarters during Fiscal Years 2019 and 2018

 

During the course of preparing the annual report on Form 10-K for the year ended June 30, 2019, the Company identified certain costs of revenue related to consulting services previously being recorded in operating expenses, which resulted in the overstatement of the gross profit for each of the quarters during the fiscal years ended June 30, 2019 and 2018, respectively.  These reclassifications had no effect on the reported net losses.

 

    Fiscal 2019     Fiscal year 2018  
    As reported     Adjustment     As revised     As reported     Adjustment     As revised  
Quarter Ended September 30                                    
Total revenue   $ 2,371,900             $ 2,371,900     $ 2,672,502             $ 2,672,502  
Cost of revenues     956,123       107,012       1,063,135       1,283,246       79,949       1,363,195  
Gross profit     1,415,777       (107,012 )     1,308,765       1,389,256       (79,949 )     1,309,307  
Operating expenses     3,055,976       (107,012 )     2,948,964       3,038,013       (79,949 )     2,958,064  
Net less     (1,623,182 )             (1,623,182 )     (1,664,706 )             (1,664,706 )
Net loss per share     (0.15 )             (0.15 )     (0.21 )             (0.21 )
                                                 
Quarter Ended December 31                                                
Total revenue     2,598,079               2,598,079       2,859,582               2,859,582  
Cost of revenues     1,198,911       122,084       1,320,995       1,068,828       79,949       1,148,777  
Gross profit     1,399168       (122,084 )     1,277,084       1,790,754       (79,949 )     1,710,805  
Operating expenses     3,826,539       (122,084 )     3,704,455       2,770,833       (79,949 )     2,690,884  
Net loss     (2,370,204 )             (2,370,204 )     (992,463 )             (992,463 )
Net loss per share     (0.19 )             (0.19 )     (0.12 )             (0.12 )
                                                 
Quarter Ended March 31                                                
Total revenue     2,327,880               2,327,880       2,315,635               2,315,635  
Cost of revenues     1,042,403       124,079       1,166,482       737,762       79,949       817,711  
Gross profit     1,285,477       (124,079 )     1,161,398       1,577,873       (79,949 )     1,497,924  
Operating expenses     3,788,644       (124,079 )     3,664,565       1,204,242       (79,949 )     1,124,293  
Net loss     (2,490,103 )             (2,490,103 )     (364,227 )             (364,227 )
Net loss per share     (0.20 )             (0.20 )     (0.04 )             (0.04 )

 

In accordance with SEC Staff Accounting Bulletin No 108, the Company has evaluated these errors, based on an analysis of quantitative and qualitative factors, as to whether it was material to the condensed statements of operations for the three months ended March 31, 2019 and 2018, December 31, 2018 and 2017, and September 30, 2018 and 2017, respectively, and if amendments of previously filed financial statements with the SEC are required. The Company has determined that quantitatively and qualitatively, the errors have no material impact to the condensed statement of operations for these periods.