| DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES | NOTE
1 - DESCRIPTION OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES Description
of Business The
condensed financial statements presented are those of PCS Edventures!, Inc., an Idaho corporation (the “Company,” “PCS,”
“PCSV,” “we,” “our,” “us” or similar words), incorporated in 1994, in the State of Idaho.
PCS specializes in experiential, hands-on, K12 education and drone technology. PCS has extensive experience and intellectual property
(“IP”) that includes drone hardware, product designs, and K-12 curriculum content. PCS continually develops new educational
products based upon market needs that the Company identifies through its sales and customer networks. Our
products facilitate STEM (Science, Technology, Engineering, and Math) education by providing engaging activities that demonstrate STEM
concepts and inspire further STEM studies, with the goal of ultimately leading students to pursue STEM career pathways. Due to our exceptionally
detailed curriculum, our products are easy to teach and do not require a teaching degree or experience to administer. Our
educational products are developed from both in-house efforts and contracted services. They are marketed through reseller channels, direct
sales efforts, partner networks, and web-based channels. PCS
has developed and sells a variety of STEM education products into the K12 market, which can be categorized as follows:
1. Enrichment
Programs These
camps are for the informal learning market and are designed to be highly engaging for students while easily administered by the instructor.
The Company offers approximately thirty (30) different enrichment programs and typically develops at least two (2) new programs each
year. Some of the more popular programs include Rockin’ Robots; Build a Better World; Summer Camp Classics; Pirate Camp; Flight
and Aerodynamics; Science of the Human Body; and Claymation.
2. Discover
Series Products These
products are designed for the makerspace environment and include engaging STEM activities that motivate students to pursue educational
pathways toward STEM careers. The Discover Series includes Discover Engineering; Discover Robotics & Physics; Discover Robotics
& Programming; and Discover STEM.
3. BrickLAB
Products These
products are designed for the grade school market and use the Company’s proprietary bricks (which are Lego compatible) and curriculum
to engage students to explore, imagine, and create within a STEM education framework. The Company offers a variety of grade-specific
BrickLAB products.
4. Discover
Drones, Add-on Drone Packages and Ala Carte Drone Items These
products are designed around using drones as a platform for STEM education and career exploration. These titles include the Discover
Drones series of Products; Discover Drones Indoor Coding Bundle; Discover Drones Indoor Racing Add-On; Discover Drones Outdoor Practice
Add-on
5. STEAMventures
BUILD Activity Book These
series of activity books are designed for the K-3 market and ideal for a distance-learning environment. The series includes twelve (12)
different issues. Instructor guides and/or family engagement guides are included. The Company also provides the necessary bricks for
the builds in the activity books as a separate, but related product.
6. Professional
Development Training The
Company offers professional development trainings, for a fee, to educators who are implementing the Company’s products in their
classroom. The
Company intends to continue developing STEM education products that address demand from large markets. Interim
Financial Information The
accompanying unaudited condensed financial statements have been prepared in accordance with Generally Accepted Accounting Principles
(“GAAP”) for interim financial information and pursuant to the rules and regulations of the U.S. Securities and Exchange
Commission (SEC). Accordingly, the accompanying unaudited condensed financial statements do not include all of the information and notes
required by GAAP for complete financial statements. In the opinion of management, all adjustments and reclassifications considered necessary
in order to make the financial statements not misleading and for a fair and comparable presentation have been included and are of a normal
recurring nature. Operating results for the three ended June 30, 2024, are not necessarily indicative of the results that may be expected
for the year ending March 31, 2024, or any future periods. The accompanying unaudited condensed financial statements should be read in
conjunction with the Company’s Annual Report on Form 10-K for the year ended March 31, 2024, filed with the SEC on June, 28, 2024. Use
of Estimates The
preparation of these condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that
affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed financial
statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
The Company’s significant estimates include reserves related to accounts receivable and inventory, the valuation allowance related
to deferred tax assets, the valuation of equity instruments, and debt discounts. Revenue
Recognition The
Company accounts for revenue in accordance with FASB ASC 606, “Revenue from Contracts with Customers,” which we adopted on
April 1, 2018. Revenue amounts presented in our condensed financial statements are recognized net of sales tax, value-added taxes, and
other taxes. Amounts received as prepayment on future products or services are recorded as unearned revenues and recognized as income
when the product is shipped, or service performed. The
Company had deferred revenue of $ 82,870 14,549 Most
of our contracts with customers contain transaction prices with fixed consideration; however, some contracts may contain variable consideration
in the form of discounts, rebates, refunds, credits, price concessions, incentives, performance bonuses, penalties, and other similar
items. When a contract includes variable consideration, we evaluate the estimate of variable consideration to determine whether the estimate
needs to be constrained; therefore, we include the variable consideration in the transaction price only to the extent that it is probable
that a significant reversal of the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable
consideration is subsequently resolved. We recognize revenue when we satisfy a performance obligation by transferring control over a
product or service to a customer. This can result in recognition of revenue over time as we perform services or at a point in time when
the deliverable is transferred to the customer, depending on an evaluation of the criteria for over time recognition in FASB ASC 606.
For certain fixed-fee per transaction contracts, such as delivering training courses or conducting workshops, revenue is recognized during
the period in which services are delivered in accordance with the pricing outlined in the contracts. Net
Earnings (Loss) Per Share of Common Stock The
Company calculates net income (loss) per share in accordance with ASC 260, Earnings Per Share (“ASC 260”). Under ASC 260,
basic net income (loss) per common share is calculated by dividing net income (loss) by the weighted-average number of common shares
outstanding during the reporting period. The weighted average number of shares of common stock outstanding includes vested restricted
stock awards. Diluted net income (loss) per share (“EPS”) reflects the potential dilution that could occur assuming exercise
of all dilutive unexercised stock options and warrants. The dilutive effect of these instruments was determined using the treasury stock
method. Under the treasury stock method, the proceeds received from the exercise of stock options and restricted stock awards, the amount
of compensation cost for future service not yet recognized by the Company, and the amount of tax benefits that would be recorded as income
tax expense when the stock options become deductible for income tax purposes are all assumed to be used to repurchase shares of the Company’s
common stock. Common
stock outstanding reflected in the Company’s balance sheets includes restricted stock awards outstanding. Securities that may participate
in undistributed net income with common stock are considered participating securities. The computation of diluted earnings per share
does not assume exercise or conversion of securities that would have an anti-dilutive effect. The following schedules presents the calculation
of basic and diluted net income per share: SCHEDULE
OF BASIC AND DILUTED NET INCOME
2024 2023
For the Three Months ended June 30,
2024 2023
Net Income per common Share:
Basic $ 0.01 $ 0.01
Diluted $ 0.01 $ 0.01
Weighted average number of common shares outstanding Basic 124,733,494 125,732,479
Weighted average number of common shares outstanding Fully Diluted 124,733,494 125,732,479 Net
income for the three (3) months ended June 30, 2024, and 2023, was $ 1,144,691 860,378 Recently
Issued Accounting Pronouncements The
Company has reviewed recent accounting pronouncements and has determined that they will not significantly impact the Company’s
results of operations or financial position. |
