v3.21.2

Acquisitions | 12 Months Ended
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Jun. 30, 2021
Business Combinations [Abstract] |
Acquisitions | Note 12 – Acquisitions Concepts and Solutions Acquisition On September 4, 2019, Galaxy entered into a stock purchase agreement with Concepts and Solutions. Under the terms of the stock purchase agreement, 100% of the outstanding capital for both Concepts and Solutions was purchased by Galaxy. Concurrent with this acquisition, the Company applied pushdown accounting; therefore, the consolidated financial statements after completion of the acquisition include the assets, liabilities, and results of operations of the combined company from and after the closing date. As part of the stock purchase agreement, Galaxy issued 1,350,000 common shares to the seller with a value of $1,485,000. In addition to the issuance of common shares, the Company entered into three promissory notes with the seller for a total note payable of $3,000,000. Payments under the notes are subject to adjustment based on the achievement of minimum gross revenues and successful resolution of certain pre-acquisition payroll withholding tax issues of Concepts and Solutions. The Company believes future earnings goals will not be met and valued the note payable at $1,484,473, which includes approximately $584,000 of accrued pre-acquisition withholding tax liabilities (See Notes 6 and 10). The balance of the note payable is $1,030,079 at June 30, 2021 and 2020. Management of the Company determined that a triggering event to assess the impairment of goodwill associated with the acquisition of Concepts and Solutions occurred during the third quarter of 2020. While there was no single event, the consideration in totality of several factors that developed during this quarter led management to conclude that it was more likely than not that the fair values of certain intangible assets and goodwill acquired as part of the acquisition were below their carrying amounts. See Note 1. The following table summarizes the preliminary allocation of the fair value of the assets and liabilities as of the acquisition date through pushdown accounting. The preliminary allocation to certain assets and/or liabilities may be adjusted by material amounts as the Company finalizes fair value estimates.
Assets |  |  |
Cash |  | $ | 201,161
Accounts receivable |  |  | 1,165,953
Inventory |  |  | 94,360
Property and equipment |  |  | 20,904
Other assets |  |  | 2,800
Goodwill and other intangibles |  |  | 3,760,287
Total Assets |  |  | 5,245,465
Liabilities |  |  |
Accounts payable |  |  | 1,225,734
Accrued expenses |  |  | 783,540
Short-term debt |  |  | 96,941
Deferred revenue |  |  | 518,900
Total Liabilities |  |  | 2,625,115
Net Assets |  | $ | 2,620,350
Consideration: |  |  |
Fair value of anti-dilution clause in employment agreement |  | $ | 235,350
Note payable to seller |  |  | 900,000
Stock |  |  | 1,485,000
|  | $ | 2,620,350
As a result of the Company pushing down the effects of the acquisition, certain accounting adjustments are reflected in the consolidated financial statements, such as goodwill and other intangible assets initially recognized of $3,760,287 and reflected in the balance sheet as of September 30, 2019. Goodwill and other intangible assets recognized is primarily attributable to the amount of the consideration in excess of the fair value of Concepts and Solutions at the date of purchase. F-27 Classroom Technologies Solutions, Inc. On October 15, 2020, the Company entered into an Asset Purchase Agreement, to acquire the assets of Classroom Technologies Solutions, Inc. ("Classroom Tech") for consideration of (a) paying off a secured Classroom Tech loan, not to exceed the greater of 50% of the value of the Classroom Tech assets acquired or $120,000; (b) the issuance of a promissory note in the amount of $44,526 to a Classroom Tech designee; and (c) the issuance of 10 million shares of common stock to the seller of Classroom Tech. The following table summarizes the allocation of the fair value of the assets as of the acquisition date through pushdown accounting.
Cash |  | $ | 38,836
Accounts receivable |  |  | 31,710
Inventory |  |  | 209,431
Property and equipment |  |  | 17,530
Other assets |  |  | 1,150
Intangibles |  |  | 46,869
Total Assets |  | $ | 345,526
Consideration |  |  |
Stock |  | $ | 151,000
Bonus program |  |  | 30,000
Notes payable to seller and related party of seller |  |  | 164,526
|  | $ | 345,526

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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