v3.22.1

Accounting Policies, by Policy (Policies) | 9 Months Ended
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Mar. 31, 2022
Accounting Policies [Abstract] |
Corporate History, Nature of Business, Mergers and Acquisitions | 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 | 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.
Basis of Presentation and Interim Financial Information | 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 the Company’s 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 | 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).
Reverse Stock Split | Reverse Stock Split Unless otherwise noted, all share and per share data referenced in the consolidated financial statements and the notes thereto have been retroactively adjusted to reflect the one-for-two hundred reverse stock split effective March 4, 2022 of our authorized and outstanding shares of common stock. As a result of the reverse stock split, certain amounts in the consolidated financial statements and the notes thereto may be slightly different than previously reported due to rounding of fractional shares, and certain amounts within the consolidated balance sheets were reclassified between common stock and additional paid-in capital.
Capital Structure | Capital Structure The Company's capital structure is as follows:
|  | March 31, 2022 |  |
|  | Authorized |  | Issued |  | Outstanding |  |
Common stock |  | 20,000,000 |  | 17,469,128 |  | 17,430,503 |  | $.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
|  | June 30, 2021 |  |
|  | Authorized |  | Issued |  | Outstanding |  |
Common stock |  | 20,000,000 |  | 15,699,414 |  | 15,449,221 |  | $.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. There are 5,295,849 common shares reserved at March 31, 2022 under terms of convertible debt agreements, the Stock Plan and the Amended and Restated Equity Purchase Agreement, dated December 29, 2020, with Tysadco Partners LLC ( the “Equity Purchase Agreement”) (see Notes 6, 11 and 13). There are 1,084,861 issued common shares that are restricted as of March 31, 2022. The shares may become free-trading upon satisfaction of certain terms and regulatory conditions.
Supplier Agreement | Supplier Agreement Contract assets and contract liabilities are as follows:
| March 31, 2022 |  | June 30, 2021
Contract assets | $ 436,930 |  | $ 43,360
Contract liabilities | - |  | 228,514
For the three months ended March 31, 2022 and 2021, the Company recognized $463,301 and $214,992 of revenues related to supplier agreements. For the nine months ended March 31, 2022 and 2021, the Company recognized $1,116,219 and $715,067 of revenues related to supplier agreements.
Accounts Receivable | Accounts Receivable Management deemed no allowance for doubtful accounts was necessary at March 31, 2022 and June 30, 2021. At March 31, 2022 and June 30, 2021, $0 and $190,779 of total accounts receivable were considered unbilled and recorded as deferred revenue.
Inventories | Inventories Management estimates $67,635 of inventory reserves at March 31, 2022 and June 30, 2021, respectively.
Goodwill, intangible assets and product development costs | Goodwill, Intangible Assets and Product Development Costs Goodwill, intangible assets, and product development costs are comprised of the following at March 31, 2022:
| Cost |  | Accumulated Amortization | Net Book Value | Impairment |  | Total
Goodwill | $ 834,220 |  | - | $834,220 | - |  | $ 834,220
Finite-lived assets: |  |  |  |  |  |  |
Customer list | $ 922,053 |  | $ (420,401) | $ 501,652 | $ (41,053) |  | $460,599
Vendor relationships | 484,816 |  | (239,500) | 245,316 | (5,816) |  | 239,500
Capitalized product development cost | 1,157,596 |  | (381,706) | 775,890 | - |  | 775,890
| $ 2,564,465 |  | $ (1,041,607) | $ 1,522,858 | $ (46,869) |  | $1,475,989
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
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 $68,000 and $70,343 for the three months ended March 31, 2022 and 2021. Amortization of these intangible assets amounted to $186,243 and $208,296 for the nine months ended March 31, 2022 and 2021. 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 $69,042 and $26,436 for the three months ended March 31, 2022 and 2021, and $184,176 and $59,364 for the nine months ended March 31, 2022 and 2021, 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: $603,836 for fiscal year 2023, $470,584 for fiscal year 2024, $272,139 for fiscal year 2025, $60,292 for fiscal year 2026, and $44,389 for fiscal year 2027 and $24,748 thereafter.
Recent Accounting Pronouncements | Recent Accounting Pronouncements 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.

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