| Revisions of Previously Issued Financial Statements |
Note 9 – Revisions of Previously
Issued Financial Statements
During the course of
preparing the Quarterly Report on Form 10-Q for the three months ended September 30, 2019, we identified certain previously duplicated
revenues, which resulted in the overstatement of total assets and revenue during the periods outlined below, and the understatement
of net losses for the periods outlined below. Additionally, during the course of preparing our Annual Report on Form 10-K for the
fiscal year ended June 30, 2019, we 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 year
ended June 30, 2019. We assessed the materiality of these errors on prior periods' financial statements and concluded that
the errors were not material to any prior annual or interim periods, but the cumulative adjustments necessary to correct the errors
would be material if we recorded the corrections the period in which the errors were identified. In accordance with GAAP, we are
revising the prior periods' financial statements when they are next issued. See Item. 4 of Part I, Controls and Procedures.
The tables below disclose
the effects on the financial statements included in this Quarterly Report on Form 10-Q and the financial statements yet to be
reissued:
| |
|
Year Ended June 30, 2018 |
|
| |
|
As
Reported |
|
|
Adjustment |
|
|
As
Revised |
|
| Consolidated Balance Sheet |
|
|
|
|
|
|
|
|
|
| Total assets |
|
$ |
3,017,731 |
|
|
$ |
(223,766 |
) |
|
$ |
2,793,965 |
|
| Total liabilities |
|
|
1,393,902 |
|
|
|
- |
|
|
|
1,393,902 |
|
| Total stockholders' equity |
|
|
1,623,829 |
|
|
|
(223,766 |
) |
|
|
1,400,063 |
|
| Net loss |
|
|
(1,623,182 |
) |
|
|
(72,501 |
) |
|
|
(1,695,683 |
) |
| Net loss per share |
|
|
(0.30 |
) |
|
|
|
|
|
|
(0.31 |
) |
| |
|
As of March 31, 2019 |
|
| |
|
As
Reported |
|
|
Adjustment |
|
|
As
Revised |
|
| Condensed Consolidated Balance Sheet |
|
|
|
|
|
|
|
|
|
| Total assets |
|
$ |
8,199,718 |
|
|
$ |
(320,434 |
) |
|
$ |
7,879,284 |
|
| Total liabilities |
|
|
3,059,378 |
|
|
|
- |
|
|
|
3,059,378 |
|
| Total stockholders' equity |
|
|
5,140,340 |
|
|
|
(320,434 |
) |
|
|
4,819,906 |
|
| |
|
Three Months Ended March 31, 2019 |
|
| |
|
As
Reported |
|
|
Adjustment |
|
|
As
Revised |
|
| Condensed Consolidated Statements of Operations |
|
|
|
|
|
|
|
|
|
| Total revenue |
|
$ |
2,327,880 |
|
|
$ |
- |
|
|
$ |
2,327,880 |
|
| Cost of revenue |
|
|
1,042,403 |
|
|
|
124,079 |
|
|
|
1,166,482 |
|
| Gross profit |
|
|
1,285,477 |
|
|
|
(124,079 |
) |
|
|
1,161,398 |
|
| Operating expenses |
|
|
3,788,644 |
|
|
|
(124,079 |
) |
|
|
3,664,565 |
|
| Net loss |
|
|
(2,490,103 |
) |
|
|
- |
|
|
|
(2,490,103 |
) |
| Net loss per share |
|
|
(0.41 |
) |
|
|
|
|
|
|
(0.41 |
) |
| |
|
Nine Months Ended March 31, 2019 |
|
| |
|
As
Reported |
|
|
Adjustment |
|
|
As
Revised |
|
| Condensed Consolidated Statements of Operations |
|
|
|
|
|
|
|
|
|
| Total revenue |
|
|
7,297,859 |
|
|
|
(96,668 |
) |
|
|
7,201,191 |
|
| Cost of revenue |
|
|
3,197,437 |
|
|
|
353,175 |
|
|
|
3,550,612 |
|
| Gross profit |
|
|
4,100,422 |
|
|
|
(449,843 |
) |
|
|
3,650,579 |
|
| Operating expenses |
|
|
10,671,159 |
|
|
|
(353,175 |
) |
|
|
10,317,984 |
|
| Net loss |
|
|
(6,483,489 |
) |
|
|
(96,668 |
) |
|
|
(6,580,157 |
) |
| Net loss per share |
|
|
(1.10 |
) |
|
|
|
|
|
|
(1.13 |
) |
| |
|
Year Ended June 30, 2019 |
|
| |
|
As
Reported |
|
|
Adjustment |
|
|
As
Revised |
|
| Consolidated Balance Sheet |
|
|
|
|
|
|
|
|
|
| Total assets |
|
|
24,522,671 |
|
|
|
(320,434 |
) |
|
|
24,202,237 |
|
| Total liabilities |
|
|
2,442,503 |
|
|
|
- |
|
|
|
2,442,503 |
|
| Total stockholders' equity |
|
|
22,080,168 |
|
|
|
(320,434 |
) |
|
|
21,759,734 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated Statements of Operations |
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenue |
|
|
10,919,785 |
|
|
|
(96,668 |
) |
|
|
10,823,117 |
|
| Cost of revenue |
|
|
4,633,844 |
|
|
|
- |
|
|
|
4,633,844 |
|
| Gross profit |
|
|
6,285,941 |
|
|
|
(96,668 |
) |
|
|
6,189,273 |
|
| Operating expenses |
|
|
18,701,619 |
|
|
|
- |
|
|
|
18,701,619 |
|
| Net loss |
|
|
(12,306,547 |
) |
|
|
(96,668 |
) |
|
|
(12,403,215 |
) |
| Net loss per share |
|
|
(2.04 |
) |
|
|
|
|
|
|
(2.05 |
) |
|