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, 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. See Item. 4 of Part I, Controls and Procedures.
|
|
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 |
) |
|
|
Three months ended 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 |
) |
|
|
Three months ended 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 |
) |
|
|
Three months ended 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 |
) |
|
|
Three months 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 |
) |
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.
|