Revisions of Previously Issued Financial Statements |
Note 7 – Revisions of
Previously Issued Financial Statements
During the course of preparing this Quarterly
Report on Form 10-Q for the three months ended September 30, 2019, the Company 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 its Annual Report on Form 10-K for the fiscal
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 year
ended June 30, 2019.
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2018 |
|
|
|
As reported |
|
|
Adjustment |
|
|
As revised |
|
Condensed Consolidated Balance Sheet |
|
|
|
|
|
|
|
|
|
Total assets |
|
|
12,090,810 |
|
|
|
(296,267 |
) |
|
|
11,794,543 |
|
Total liabilities |
|
|
2,090,163 |
|
|
|
- |
|
|
|
2,090,163 |
|
Total stockholders' equity |
|
|
10,000,647 |
|
|
|
(296,267 |
) |
|
|
9,704,380 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Operations |
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
|
2,371,900 |
|
|
|
(72,501 |
) |
|
|
2,299,399 |
|
Cost of revenue |
|
|
956,123 |
|
|
|
107,012 |
|
|
|
1,063,135 |
|
Gross profit |
|
|
1,415,777 |
|
|
|
(179,513 |
) |
|
|
1,236,264 |
|
Operating expenses |
|
|
3,055,976 |
|
|
|
(107,012 |
) |
|
|
2,948,964 |
|
Net loss |
|
|
(1,623,182 |
) |
|
|
(72,501 |
) |
|
|
(1,695,683 |
) |
Net loss per share |
|
|
(0.30 |
) |
|
|
|
|
|
|
(0.31 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2018 |
|
|
|
As reported |
|
|
Adjustment |
|
|
As revised |
|
Condensed Consolidated Balance Sheet |
|
|
|
|
|
|
|
|
|
Total assets |
|
|
9,836,178 |
|
|
|
(320,434 |
) |
|
|
9,515,744 |
|
Total liabilities |
|
|
2,205,735 |
|
|
|
- |
|
|
|
2,205,735 |
|
Total stockholders' equity |
|
|
7,630,443 |
|
|
|
(320,434 |
) |
|
|
7,310,009 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Operations |
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
|
2,598,079 |
|
|
|
(24,167 |
) |
|
|
2,573,912 |
|
Cost of revenue |
|
|
1,198,911 |
|
|
|
122,084 |
|
|
|
1,320,995 |
|
Gross profit |
|
|
1,399,168 |
|
|
|
(146,251 |
) |
|
|
1,252,917 |
|
Operating expenses |
|
|
3,826,539 |
|
|
|
(122,084 |
) |
|
|
3,704,455 |
|
Net loss |
|
|
(2,370,204 |
) |
|
|
(24,167 |
) |
|
|
(2,394,371 |
) |
Net loss per share |
|
|
(0.39 |
) |
|
|
|
|
|
|
(0.40 |
) |
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
) |
|
|
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 |
) |
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 consolidated statements of operations for the three months ended September
30, 2018, December 31, 2018, and March 31, 2019, and consolidated statements of operations for the year ended June 30, 2019, as
well as to the consolidated balance sheets as of June 30, 2019 and 2018, condensed consolidated balance sheets as of September
30, 2018, December 31, 2018, and March 30, 2019, and as to whether 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
above mentioned financial statements.
|