v3.22.0.1

Summary of Significant Accounting Policies | 6 Months Ended
--- | ---
Dec. 31, 2021
Accounting Policies [Abstract] |
Summary of Significant Accounting Policies | Note 1 - Summary of Significant Accounting Policies Corporate History, Nature of Business, Mergers and Acquisitions Galaxy is a manufacturer and U.S. distributor of interactive learning technology hardware and software that allows the presenter and participant to engage in a fully collaborative instructional environment. Galaxy's products include Galaxy's own private-label interactive touch screen panel as well as numerous other national and international branded peripheral and communication devices. New technologies like Galaxy's own touchscreen panels are sold along with renowned brands such as Google Chromebooks, Microsoft Surface Tablets, Lenovo and Acer computers,Verizon WiFi and more. Galaxy's distribution channel consists of approximately 37 resellers across the U.S. who primarily sell its products within the commercial and educational market. Galaxy does not control where the resellers focus their resell efforts; however, the K-12 education market is the largest customer base for Galaxy products comprising nearly 90% of Galaxy's sales. In addition, Galaxy also possesses its own reseller channel where it sells directly to the K-12 market, primarily throughout the Southeast region of the United States. Ehlert Solutions Group, Inc. ("Solutions") and Interlock Concepts, Inc. ("Concepts") are Arizona-based audio design and manufacturing companies creating innovative products that provide fundamental tools for building notification systems primarily to K-12 education market customers located primarily in the north and northwest United States. Solutions and Concepts' products and services allow institutions access to intercom, scheduling, and notification systems with improved ease of use. The products provide an open architecture solution to customers which allows the products to be used in both existing and new environments. Intercom, public announcement (PA), bell and control solutions are easily added and integrated within the open architecture design and software model. These products combine elements over a common internet protocol (IP) network, which minimizes infrastructure requirements and reduces costs by combining systems. On October 15, 2020, Galaxy acquired 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. Classroom Tech provides cutting-edge presentation products to schools, training facilities, churches, corporations and retail establishments. Their high-quality solutions are customized to meet a variety of needs and budgets in order to provide the best in education and presentation technology. Classroom Tech direct-sources and imports many devices and components which allows the Company to be innovative, nimble, and capable of delivering a broad range of cost-effective solutions. Classroom Tech also offers in-house service and repair facilities and carries many top brands. COVID-19 Update The Covid-19 Pandemic that began in early 2020 caused shelter-in-place policies, unexpected factory closures, supply chain disruptions, and market volatilities across the globe. As a result of the economic disruptions and unprecedented market volatilities and uncertainties driven by the Covid-19 outbreak, the Company experienced some supply chain disruptions. However, the Company has not experienced any significant payment delays or defaults by our customers as a result of the COVID-19 pandemic. The full impact of the Covid-19 outbreak continues to evolve as of the date of this report. The depth and duration of the pandemic remains unknown. Despite the availability of vaccines, recent surges in the infection rate and the detection of new variants of the virus have reinforced the general consensus that the containment of Covid-19 remains a challenge. Management is actively monitoring the global situation and its effect on its financial condition, liquidity, operations, suppliers, industry, and workforce. -9- Basis of Presentation and Interim Financial Information The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and applicable rules and regulations of the Securities and Exchange Commission (the "SEC") pertaining to interim financial information. Accordingly, these interim financial statements do not include all information or footnote disclosures required by GAAP for complete financial statements and, therefore, should be read in conjunction with the Consolidated Financial Statements and notes thereto in our June 30, 2021 Annual Report on Form 10-K and other current filings with the SEC. In the opinion of management, all adjustments, consisting of those of a normal recurring nature, necessary to present fairly the results of the periods presented have been included. The results of operations for the interim periods presented may not necessarily be indicative of the results to be expected for the full year. Principles of Consolidation The financial statements include the consolidated assets and liabilities of the combined company (collectively Galaxy Next Generation, Inc., Classroom Technology Solutions Inc., Interlock Concepts, Inc., and Ehlert Solutions Group, Inc. referred to collectively as the "Company"). See Note 12. All intercompany transactions and accounts have been eliminated in the consolidation. The Company’s common stock is traded on the over-the-counter public company traded under the stock symbol listing GAXY (formerly FLCR). Capital Structure The Company's capital structure is as follows:
|  | December 31, 2021 |  |
|  | Authorized |  | Issued |  | Outstanding |  |
Common stock |  | 4,000,000,000 |  | 3,379,882,882 |  | 3,379,844,257 |  | $.0001 par value, one vote per share
Preferred stock |  | 200,000,000 |  | - |  | - |  | $.0001 par value, one vote per share
Preferred stock - Class A |  | 750,000 |  | - |  | - |  | $.0001 par value; no voting rights
Preferred stock - Class B |  | 1,000,000 |  | - |  | - |  | Voting rights of 10 votes for Preferred B share; 2% preferred dividend payable annually
Preferred stock - Class C |  | 9,000,000 |  | - |  | - |  | $.0001 par value; 500 votes per share, convertible to common stock
Preferred stock - Class F |  | 15,000 |  | 11,414 |  | 11,414 |  | $.001 par value; no voting rights, convertible to common stock at a fixed price of $0.37 per share; stated value is $1,000 per share
-10-
|  | June 30, 2021 |  |
|  | Authorized |  | Issued |  | Outstanding |  |
Common stock |  | 4,000,000,000 |  | 3,139,882,882 |  | 3,089,844,257 |  | $.0001 par value, one vote per share
Preferred stock |  | 200,000,000 |  | - |  | - |  | $.0001 par value, one vote per share
Preferred stock - Class A |  | 750,000 |  | - |  | - |  | $.0001 par value; no voting rights
Preferred stock - Class B |  | 1,000,000 |  | - |  | - |  | Voting rights of 10 votes for 1 Preferred B share; 2% preferred dividend payable annually
Preferred stock - Class C |  | 9,000,000 |  | - |  | - |  | $.0001 par value; 500 votes per share, convertible to common stock
Preferred stock - Class D |  | 1,000,000 |  | - |  | - |  | $.0001 par value; no voting rights, convertible to common stock, mandatory conversion to common stock 18 months after issue
Preferred stock - Class E |  | 500,000 |  | 500,000 |  | 500,000 |  | $.0001 par value; no voting rights, convertible to common stock
There is no publicly traded market for the preferred shares. The Preferred Series D and E were retired in December 2021. Preferred Series F certificate of designation was filed on February 10, 2022. There are 434,891,143 common shares reserved at December 31, 2021 under terms of the convertible debt agreements, Stock Plan and Equity Purchase Agreement (see Notes 6, 11 and 13). There are 104,764,231 issued common shares that are restricted as of December 31, 2021. The shares may become free-trading upon satisfaction of certain terms and regulatory conditions. Supplier Agreement Contract assets and contract liabilities are as follows:
|  | December 31, 2021 |  | June 30, 2021
Contract assets |  | $ | 12,409 |  | $ | 43,360
Contract liabilities |  |  | 137,351 |  |  | 228,514
For the three months ended December 31, 2021 and 2020, the Company recognized $219,309 and $445,136 of revenues related to supplier agreements. For the six months ended December 31, 2021 and 2020, the Company recognized $637,746 and $500,075 of revenues related to supplier agreements. -11- Accounts Receivable Management deemed no allowance for doubtful accounts was necessary at December 31, 2021 and June 30, 2021. At December 31, 2021 and June 30, 2021, $0 and $190,779 of total accounts receivable were considered unbilled and recorded as deferred revenue. Inventories Management estimates $67,635 of inventory reserves at December 31, 2021 and June 30, 2021, respectively. Goodwill, Intangible Assets and Product Development Costs Goodwill, intangible assets, and product development costs are comprised of the following at December 31, 2021:
|  | Cost |  | Accumulated Amortization |  | Net Book Value |  | Impairment |  | Total
Goodwill |  | $ | 834,220 |  | $ | - |  | $ | 834,220 |  | $ | - |  | $ | 834,220
Finite-lived assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer list |  | $ | 922,053 |  | $ | (376,351) |  | $ | 545,702 |  | $ | (41,053) |  | $ | 504,649
Vendor relationships |  |  | 484,816 |  |  | (215,550) |  |  | 269,266 |  |  | (5,816) |  |  | 263,450
Capitalized product development cost |  |  | 1,015,707 |  |  | (312,664) |  |  | 703,043 |  |  | - |  |  | 703,043
|  | $ | 2,422,576 |  | $ | (904,565) |  | $ | 1,518,011 |  | $ | (46,869) |  | $ | 1,471,142
Goodwill, intangible assets, and product development costs are comprised of the following at June 30, 2021:
|  | Cost |  | Accumulated Amortization |  | Total
Goodwill |  | $ | 834,220 |  | $ | - |  | $ | 834,220
Finite-lived assets: |  |  |  |  |  |  |  |  |
Customer list |  | $ | 922,053 |  | $ | (314,166) |  | $ | 607,887
Vendor relationships |  |  | 484,816 |  |  | (168,474) |  |  | 316,342
Product development costs |  |  | 790,118 |  |  | (197,532) |  |  | 592,586
|  | $ | 2,196,987 |  | $ | (680,172) |  | $ | 1,516,815
-12- Intangible assets such as customer lists and vendor relationships are stated at the lower of cost or fair value. They are amortized on a straight-line basis over periods ranging from three to six years, representing the period over which the Company expects to receive future economic benefits from these assets. Amortization of these intangible assets amounted to $44,700 and $69,953 for the three months ended December 31, 2021 and 2020. Amortization of these intangible assets amounted to $118,243 and $137,953 for the six months ended December 31, 2021 and 2020. Costs incurred in designing and developing classroom technology products are expensed as research and development until technological feasibility has been established. Technological feasibility is established upon completion of a detail product design, or in its absence, completion of a working model. Upon the achievement of technological feasibility, development costs are capitalized and subsequently reported at the lower of unamortized cost or net realizable value. Management's judgment is required in determining whether a product provides new or additional functionality, the point at which various products enter the stages at which costs may be capitalized, assessing the ongoing value and impairment of the capitalized costs and determining the estimated useful lives over which the costs are amortized. Annual amortization expense is calculated based on the straight-line method over the product's estimated economic lives, which are typically three to six years. Amortization of product development costs incurred begins when the related products are available for general release to customers. Amortization of product development costs of $44,761 and $20,416 for the three months ended December 31, 2021 and 2020, and $115,134 and $32,927 for the six months ended December 31, 2021 and 2020, is included in cost of revenues in the Company's unaudited condensed consolidated statements of operations. Estimated amortization expense related to finite-lived intangible assets for the next five years is: $555,920 for fiscal year 2023, $483,959 for fiscal year 2024, $314,272 for fiscal year 2025, $60,400 for fiscal year 2026, and $40,207 for fiscal year 2027 and $16,384 thereafter. Recent Accounting Pronouncements In January 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-01, “Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323, and Topic 815.” The ASU is based on a consensus of the Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions. ASU 2016-01 made targeted improvements to accounting for financial instruments, including providing an entity the ability to measure certain equity securities without a readily determinable fair value at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Among other topics, the amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting. For public business entities, the amendments in the ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. The Company adopted this ASU on July 1, 2021 with no significant impact on its unaudited condensed consolidated financial statements. -13- In December 2019, the FASB issued ASU No. 2019-12 “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ("ASU 2019-12") by removing certain exceptions to the general principles. The amendments will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption of the amendments is permitted. Depending on the amendment, adoption may be applied on a retrospective, modified retrospective or prospective basis. The Company adopted this ASU on July 1, 2021 with no significant impact on its unaudited condensed consolidated financial statements. In August 2020, the FASB issued ASU 2020-06, "Accounting for Convertible Instruments and Contracts in an Entity's Own Equity", which simplifies the accounting for certain convertible instruments, amends guidance on derivative scope exceptions for contracts in an entity's own equity and modifies the guidance on diluted EPS calculations as a result of these changes. The guidance in this ASU can be adopted using either a full or modified retrospective approach and becomes effective for annual reporting periods beginning after December 15, 2020, with early adoption permitted. The Company adopted this ASU on July 1, 2021 with no significant impact on its unaudited condensed consolidated financial statements. The Company has implemented all new applicable accounting pronouncements that are in effect and applicable. These pronouncements did not have any material impact on the consolidated financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

X
- References No definition available. + Details
Name: | us-gaap_AccountingPoliciesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for all significant accounting policies of the reporting entity. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=123372394&loc=d3e18726-107790 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 + Details
Name: | us-gaap_SignificantAccountingPoliciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration