Accounting Policies, by Policy (Policies) |
6 Months Ended | |||||||||
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Dec. 31, 2019 | ||||||||||
| Accounting Policies [Abstract] | ||||||||||
| Revenue [Policy Text Block] | Revenue Recognition
The majority of our revenue is derived from short-term sales contracts. We account for revenue in accordance with Accounting Standards Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers”.
Revenue for our products is recognized at the time in which our performance obligation is satisfied which we have defined as “control” of the product by the customer. “Control” is defined as a customer having “rights/obligations of physical control over the product or has the rights and intention to control the product.” Based on the terms of our contracts, a customer’s “control” is based on analysis of the following; (i) when a customer arranges shipment of product themselves, and once the product has left our dock, Amerityre Corporation (the “Company” or “Amerityre”), recognizes revenue for the product. In effect by arranging their own freight, the customer is “taking control” of the product when it leaves our warehouse; or (ii) when a customer does not arrange shipment of product themselves, we cannot recognize revenue until it is delivered and the customer takes “control” of the product. This establishes a “deferred revenue” event until such time as delivery of the product has been completed and we have proof from the shipper of the delivery (and change in control).
As of December 31, 2019, we had no deferred revenue. Deferred revenue was $13,917 inclusive of $739 of shipping and handling revenue as of December 31, 2018.
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| Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and Handling
Shipping and Handling Fees require that freight costs charged to customers be classified as revenues. Freight expenses are included in costs of sales and are recognized as incurred. Due to our adoption of ASC 606 as discussed above, we defer the revenues of shipping and handling until the related revenue is also recognized. At December 31, 2019 we had no deferred shipping and handling versus December 31, 2018 which $739 |
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| Lessee, Leases [Policy Text Block] | Right to Use Assets – Leases
We account for all Company leases following a multi-step analysis process which includes:
Items that do not qualify as leases are treated similar to service agreements and expensed as incurred.
Once an item qualifies for lease accounting, we analyze the item for operating or finance lease treatment with the major difference that finance leases include interest as a term note would. In the case that a finance lease does not have a stated interest rate, we will impute the interest.
Both operating and finance leases result in a right to use asset and related lease liability on our balance sheet.
Items that enhance a lease asset, such as leasehold improvements, are capitalized with the related right to use such asset. Amortization of that improvement is based on all known facts inclusive of the lease term.
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| Reclassification, Policy [Policy Text Block] | Reclassifications
Certain reclassifications have been made to these financial statements which have no impact in the quarter to date or year to date net income of the Company. During the preparation of these filings, the Company noted that our presentation of our payments toward, and the related amortization of, our right to use leased assets were reflected as a non-cash transaction for the three months ended September 30, 2019. We have corrected this presentation to reflect the payments toward our lease liability as a cash outflow in operating activities and the related amortization of our right to use leased assets as part of our depreciation and amortization line item, also in operating activities. The overall result is both an increase and decrease to specific line items within operating activities, but does not affect the end result of operating activities.
Additionally, leasehold improvements amortization costs are now reported through all departments instead of solely to general and administration departments. This reclassification was made in order to better reflect the benefit of these expenses.
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| Earnings Per Share, Policy [Policy Text Block] | Basic and Fully Diluted Net Income (Loss) Per Share
Basic and Fully Diluted net income (loss) per share is computed using the weighted-average number of common shares outstanding during the period.
Our outstanding stock options and warrants and shares issuable upon conversion of outstanding convertible notes have been excluded from the basic and fully diluted net loss per share calculation. We excluded 2,870,000 and 6,300,000 common stock equivalents for the periods ended December 31, 2019 and 2018, respectively, because they are anti-dilutive.
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| New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements
Other recent accounting pronouncements issued by the Financial Accounting Standards Board (“FASB”) (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the SEC, did not, or are not believed by management to, have a material impact on the Company's present or future financial position, results of operations or cash flows. |