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Revisions of Previously Issued Financial Statements

3 Months Ended

12 Months Ended

Sep. 30, 2020

Jun. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Revisions of Previously Issued Financial Statements

Note 9 – Revisions of Previously Issued Financial Statements

During the course of preparing the annual report on Form 10-K for the year ended June 30, 2020, we determined that costs incurred during the application development phase of certain new software applications and enhancements were not properly capitalized, which resulted in the overstatement of operating expenses and net loss, and an understatement of amortization expense for each of the quarters during the year ended June 30, 2020. We assessed the materiality of these errors on prior periods' financial statements and concluded that the errors were not material to any prior annual or interim periods, but the cumulative adjustments necessary to correct the errors would be material if we recorded the corrections the period in which the errors were identified. In accordance with GAAP, we are revising the prior periods' financial statements when they are next issued. See Item. 4 of Part I, Controls, and Procedures. 

The tables below disclose the effects on the financial statements included in this Quarterly Report on Form 10-Q and the financial statements yet to be reissued: 

		Three Months Ended September 30, 2019
		As reported				Adjustment				As revised
Condensed Consolidated Statements of Operations
Cost of revenue		$	1,397,361			$	(17,660	)		$	1,379,701
Gross profit			1,795,529				17,660				1,813,189
Product development			1,130,880				(519,978	)			610,902
Selling, general and administrative			3,583,815				17,899				3,601,714
Net loss			(2,846,071	)			519,739				(2,326,332	)
Net loss per share			(0.26	)			—				(0.21	)
		Three Months Ended December 31, 2019
		As reported				Adjustment				As revised
Condensed Consolidated Statements of Operations
Cost of revenue		$	1,638,840			$	(23,601	)		$	1,615,239
Gross profit			1,667,363				23,601				1,690,964
Product development			1,261,509				(638,008	)			623,501
Selling, general and administrative			4,796,404				86,768				4,883,172
Net loss			(4,338,536	)			574,841				(3,763,695	)
Net loss per share			(0.40	)			—				(0.34	)
		Six Months Ended December 31, 2019
		As reported				Adjustment				As revised
Condensed Consolidated Statements of Operations
Cost of revenue		$	3,036,201			$	(41,261	)		$	2,994,940
Gross profit			3,462,892				41,261				3,504,153
Product development			2,392,389				(1,157,986	)			1,234,403
Selling, general and administrative			8,380,219				104,667				8,484,886
Net loss			(7,184,607	)			1,094,580				(6,090,027	)
Net loss per share			(0.66	)			—				(0.56	)
		Three Months Ended March 31, 2020
		As reported				Adjustment				As revised
Condensed Consolidated Statement of Operations
Cost of revenue		$	1,420,909			$	(24,690	)		$	1,396,219
Gross profit			1,649,637				24,690				1,674,327
Product development			1,632,353				(757,566	)			874,787
Selling, general and administrative			5,500,837				177,405				5,678,242
Net loss			(5,348,980	)			604,851				(4,744,129	)
Net loss per share			(0.43	)			—				(0.38	)
		Nine Months Ended March 31, 2020
		As reported				Adjustment				As revised
Condensed Consolidated Statements of Operations
Cost of revenue		$	4,457,110			$	(65,951	)		$	4,391,159
Gross profit			5,112,529				65,951				5,178,480
Product development			4,024,742				(1,915,552	)			2,109,190
Selling, general and administrative			13,881,056				282,072				14,163,128
Net loss			(12,533,587	)			1,699,431				(10,834,156	)
Net loss per share			(1.11	)			—				(0.96	)

Note 14 – Revisions of Financial Statements for the Fiscal Quarters during Fiscal Year 2020

During the course of preparing the annual report on Form 10-K for the year ended June 30, 2020, we determined that costs incurred during the application development phase of certain new software applications and enhancements were not properly capitalized, which resulted in the overstatement of operating expenses and net loss, and an understatement of amortization expense for each of the quarters during the year ended June 30, 2020. We assessed the materiality of these errors on prior periods' financial statements and concluded that the errors were not material to any prior annual or interim periods, but the cumulative adjustments necessary to correct the errors would be material if we recorded the corrections the period in which the errors were identified. In accordance with GAAP, we are revising the prior periods' financial statements when they are next issued. See Item. 4 of Part I, Controls, and Procedures.

		Three Months Ended September 30, 2019
		As reported				Adjustment				As revised
Condensed Consolidated Statements of Operations
Cost of revenue		$	1,397,361			$	(17,660	)		$	1,379,701
Gross profit			1,795,529				17,660				1,813,189
Product development			1,130,880				(519,978	)			610,902
Selling, general and administrative			3,583,815				17,899				3,601,714
Net loss			(2,846,071	)			519,739				(2,326,332	)
Net loss per share			(0.26	)							(0.21	)

		Three Months Ended December 31, 2019
		As reported				Adjustment				As revised
Condensed Consolidated Statements of Operations
Cost of revenue			1,638,840				(23,601	)			1,615,239
Gross profit			1,667,363				23,601				1,690,964
Product development			1,261,509				(638,008	)			623,501
Selling, general and administrative			4,796,404				86,768				4,883,172
Net loss			(4,338,536	)			574,841				(3,763,695	)
Net loss per share			(0.40	)							(0.34	)

		Six Months Ended December 31, 2019
		As reported			Adjustment			As revised
Condensed Consolidated Statements of Operations
Cost of revenue			3,036,201			(41,261)			2,994,940
Gross profit			3,462,892			41,261			3,504,153
Product development			2,392,389			(1,157,986)			1,234,403
Selling, general and administrative			8,380,219			104,667			8,484,886
Net loss			(7,184,607	)		1,094,580			(6,090,027	)
Net loss per share			(0.66	)					(0.56	)

		Three Months Ended March 31, 2020
		As reported				Adjustment				As revised
Condensed Consolidated Statement of Operations
Cost of revenue			1,420,909				(24,690	)			1,396,219
Gross profit			1,649,637				24,690				1,674,327
Product development			1,632,353				(757,566	)			874,787
Selling, general and administrative			5,500,837				177,405				5,678,242
Net loss			(5,348,980	)			604,851				(4,744,129	)
Net loss per share			(0.43	)							(0.38	)

		Nine Months Ended March 31, 2020
		As reported				Adjustment				As revised
Condensed Consolidated Statements of Operations
Cost of revenue			4,457,110				(65,951	)			4,391,159
Gross profit			5,112,529				65,951				5,178,480
Product development			4,024,742				(1,915,552	)			2,109,190
Selling, general and administrative			13,881,056				282,072				14,163,128
Net loss			(12,533,587	)			1,699,431				(10,834,156	)
Net loss per share			(1.11	)							(0.96	)

X

- Definition

The entire disclosure for reporting accounting changes and error corrections. It includes the conveyance of information necessary for a user of the Company's financial information to understand all aspects and required disclosure information concerning all changes and error corrections reported in the Company's financial statements for the period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22644-107794

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-URI http://asc.fasb.org/topic&trid=2122394

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