Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2021 | May 07, 2021 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Entity Registrant Name | GALAXY NEXT GENERATION, INC. | |
Entity Central Index Key | 0001127993 | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 3,040,944,203 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Incorporation | NV | |
Entity File Number | 000-56006 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Current Assets | ||
Cash | $ 742,382 | $ 412,391 |
Accounts receivable, net | 1,302,764 | 798,162 |
Inventories, net | 2,207,885 | 738,091 |
Prepaid and other current assets | 3,950 | 2,800 |
Total Current Assets | 4,256,981 | 1,951,444 |
Property and Equipment, net (Note 3) | 58,290 | 52,049 |
Intangibles, net (Notes 4 and 14) | 1,335,928 | 1,436,315 |
Goodwill (Notes 4 and 14) | 834,220 | 834,220 |
Operating right of use asset (Note 9) | 176,624 | 223,982 |
Total Assets | 6,662,043 | 4,498,010 |
Current Liabilities | ||
Line of credit (Note 5) | 991,598 | 1,236,598 |
Convertible notes payable, net of discount (Note 6) | 1,101,900 | |
Derivative liability, convertible debt features and warrants (Note 7) | 3,376,000 | 246,612 |
Current portion of long-term notes payable (Note 6) | 940,011 | 512,425 |
Accrued legal settlement payable (Note 12) | 600,000 | 1,282,000 |
Accounts payable | 906,228 | 1,804,269 |
Accrued expenses | 434,165 | 371,912 |
Deferred revenue | 815,214 | 1,133,992 |
Short term portion of related party notes and payables (Note 8) | 3,984,760 | 1,272,812 |
Total Current Liabilities | 12,047,976 | 8,962,520 |
Noncurrent Liabilities | ||
Long term portion of related party notes payable (Note 8) | 2,075,000 | |
Long term portion of accrued legal settlement payable (Note 12) | 318,240 | 718,000 |
Notes payable, less current portion (Note 6) | 398,853 | 482,553 |
Total Liabilities | 12,765,069 | 12,238,073 |
Stockholders' Equity (Deficit) | ||
Common stock | 252,850 | 59,539 |
Preferred stock - Series E, non-redeemable | 50 | 50 |
Additional paid-in-capital | 40,934,014 | 15,697,140 |
Accumulated deficit | (47,289,940) | (23,496,792) |
Total Stockholders' Equity (Deficit) | (6,103,026) | (7,740,063) |
Total Liabilities and Stockholders' Equity (Deficit) | $ 6,662,043 | $ 4,498,010 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||||
Revenues | $ 777,457 | $ 349,247 | $ 2,754,463 | $ 1,850,673 |
Cost of Sales | 356,731 | 130,614 | 1,660,971 | 1,116,398 |
Gross Profit | 420,726 | 218,633 | 1,093,492 | 734,275 |
General and Administrative Expenses | ||||
Stock compensation and stock issued for services | 2,350 | 48,034 | 2,778,550 | 2,055,726 |
Asset impairment expense | 2,000,287 | 2,000,287 | ||
General and administrative | 1,697,410 | 1,662,359 | 4,347,555 | 4,263,887 |
Total General and Administrative Expenses | 1,699,760 | 3,710,680 | 7,126,105 | 8,319,900 |
Loss from Operations | (1,279,034) | (3,492,047) | (6,032,613) | (7,585,625) |
Other Income (Expense) | ||||
Other income | 141,017 | 141,017 | 3,049 | |
Expenses related to convertible notes payable: | ||||
Change in fair value of derivative liability | 343,000 | 695,300 | (3,153,583) | 2,717,557 |
Interest accretion | (603,852) | (766,603) | (1,412,705) | |
Interest expense related to Equity Purchase Agreement (Note 13) | (1,805,687) | (6,807,587) | ||
Interest expense | (289,585) | (1,860,498) | (7,173,779) | (3,822,927) |
Total Other Income (Expense) | (1,611,255) | (1,769,050) | (17,760,535) | (2,515,026) |
Net Loss before Income Taxes | (2,890,289) | (5,261,097) | (23,793,148) | (10,100,651) |
Income taxes (Note 11) | ||||
Net Loss | $ (2,890,289) | $ (5,261,097) | $ (23,793,148) | $ (10,100,651) |
Net Basic and Fully Diluted Loss Per Share | $ (0.001) | $ (0.150) | $ (0.008) | $ (0.470) |
Weighted average common shares outstanding | ||||
Basic | 2,822,806,425 | 35,520,434 | 2,221,202,596 | 21,547,126 |
Fully diluted | 3,387,367,710 | 585,972,958 | 3,433,133,044 | 339,856,357 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Changes in Stockholders' Equity (Deficit) (Unaudited) - USD ($) | Common Stock [Member] | Preferred Stock - Class E [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Total |
Beginning Balance at Jun. 30, 2019 | $ 1,072 | $ 4,859,731 | $ (9,470,685) | $ (4,609,882) | |
Beginning Balance, shares at Jun. 30, 2019 | 11,318,901 | ||||
Common stock issued for services | $ 314 | 1,995,900 | 1,996,214 | ||
Common stock issued for services, shares | 3,119,912 | ||||
Common stock issued in exchange for debt reduction | $ 9,598 | 4,137,688 | 4,147,286 | ||
Common stock issued in exchange for debt reduction, shares | 95,988,567 | ||||
Settlement of conversion features | 152,374 | 152,374 | |||
Issuance of common stock to warrant holders | |||||
Issuance of common stock to warrant holders, shares | 23,142,794 | ||||
Common stock issued as compensation | $ 14 | 59,497 | 59,511 | ||
Common stock issued as compensation, shares | 144,511 | ||||
Common stock issued in acquisition of Ehlert Solutions and Interlock Concepts, Inc. | $ 135 | 1,720,216 | 1,720,351 | ||
Common stock issued in acquisition of Ehlert Solutions and Interlock Concepts, Inc., shares | 1,350,000 | ||||
Common stock issued for convertible notes | $ 50 | 219,950 | 220,000 | ||
Common stock issued for convertible notes, shares | 500,000 | ||||
Commitment shares issued | $ 3 | 6,997 | 7,000 | ||
Commitment shares issued, shares | 25,000 | ||||
Issuance of Preferred Stock - Class E | $ 50 | 499,950 | 500,000 | ||
Issuance of Preferred Stock - Class E, shares | 500,000 | ||||
Consolidated net loss | (10,100,651) | (10,100,651) | |||
Ending Balance at Mar. 31, 2020 | $ 11,186 | $ 50 | 13,652,303 | (19,571,336) | (5,907,797) |
Ending Balance, Shares at Mar. 31, 2020 | 135,589,685 | 500,000 | |||
Beginning Balance at Jun. 30, 2020 | $ 59,539 | $ 50 | 15,697,140 | (23,496,792) | $ (7,740,063) |
Beginning Balance, shares at Jun. 30, 2020 | 628,039,242 | 500,000 | 628,000,617 | ||
Common stock issued for services | $ 10,580 | 2,767,970 | $ 2,778,550 | ||
Common stock issued for services, shares | 105,800,000 | ||||
Common stock issued in exchange for debt reduction | $ 138,281 | 12,892,954 | 13,031,235 | ||
Common stock issued in exchange for debt reduction, shares | 1,382,812,744 | ||||
Issuance of common stock to warrant holders | |||||
Issuance of common stock to warrant holders, shares | 249,792,217 | ||||
Commitment shares issued | $ 5,750 | 1,171,250 | 1,177,000 | ||
Commitment shares issued, shares | 57,500,000 | ||||
Common stock issued under Equity Purchase Agreement | $ 37,700 | 8,254,700 | 8,292,400 | ||
Common stock issued under Equity Purchase Agreement, shares | 377,000,000 | ||||
Common stock issued as collateral | |||||
Common stock issued as collateral, shares | 50,000,000 | 50,000,000 | |||
Common stock issued in acquisition | $ 1,000 | 150,000 | $ 151,000 | ||
Common stock issued in acquisition, shares | 10,000,000 | ||||
Consolidated net loss | (23,793,148) | (23,793,148) | |||
Ending Balance at Mar. 31, 2021 | $ 252,850 | $ 50 | $ 40,934,014 | $ (47,289,940) | $ (6,103,026) |
Ending Balance, Shares at Mar. 31, 2021 | 2,860,944,203 | 500,000 | 2,810,905,578 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash Flows from Operating Activities | ||
Net loss | $ (23,793,148) | $ (10,100,651) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 278,949 | 563,855 |
Goodwill and intangible assets impairment charge | 2,000,287 | |
Loss on disposal of property and equipment | 13,236 | |
Amortization of convertible debt discounts | 265,953 | 308,062 |
Accretion and settlement of financing instruments and change in fair value of derivative liability | 3,827,600 | (389,331) |
Stock compensation and stock issued for services | 2,789,130 | |
Stock issued for payment of interest | 13,826,684 | |
Changes in assets and liabilities: | ||
Accounts receivable | (472,892) | 323,444 |
Inventories | (1,260,363) | (194,699) |
Prepaid expenses and other assets | 18,098 | |
Accounts payable | (1,979,801) | 217,307 |
Accrued expenses | 62,253 | (365,562) |
Deferred revenue | (318,778) | 167,404 |
Net cash used in operating activities | (6,774,413) | (7,438,550) |
Cash Flows from Investing Activities | ||
Acquisition of business, net of cash | 38,836 | 2,967,918 |
Purchased capitalized development costs | (120,404) | |
Purchases of property and equipment | (17,636) | |
Net cash provided by (used in) investing activities | (81,568) | 2,950,282 |
Cash Flows from Financing Activities | ||
Proceeds from notes payable | 332,500 | |
Principal payments on financing lease obligations | (5,721) | |
Principal payments on notes payable | (1,878) | (48,331) |
Payments on advances from stockholder, net | (140,596) | |
Payments on convertible notes payable | (110,000) | (655,076) |
Proceeds from convertible notes payable | 1,956,000 | 4,550,684 |
Proceeds from notes payable related parties | 543,613 | 672,084 |
Payments on line of credit, net | (245,000) | (100) |
Proceeds from sale of common stock under Equity Purchase Agreement | 4,851,333 | |
Net cash provided by financing activities | 7,185,972 | 4,513,540 |
Net Increase in Cash and Cash Equivalents | 329,991 | 25,272 |
Cash, Beginning of Period | 412,391 | 169,430 |
Cash, End of Period | 742,382 | 194,702 |
Supplemental and Non Cash Disclosures | ||
Noncash additions related to convertible debt | 228,020 | 268,350 |
Cash paid for interest | 163,314 | 176,379 |
Interest on shares issued under Equity Purchase Agreement | 6,807,587 | |
Related party note payable issued for acquisition of business | 194,526 | 1,484,473 |
Acquisition of goodwill and intangibles | 46,869 | 3,760,287 |
Stock compensation and stock issued for services | 2,778,550 | 2,055,873 |
Property leased with financing lease | 25,317 | 37,979 |
Accretion of discount and change in fair value of derivatives | 3,895,991 | |
Common stock issued in exchange for convertible debt reduction | $ 4,117,650 | $ 3,447,912 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 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, its own Intercom, Bell, and Paging solution, as well as numerous other national and international branded peripheral and communication devices for safety and security purposes. 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 OEM division where it manufacturers products for other vendors in their industry and white labels the products under other brands. Solutions and 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. These 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, the Company entered into an Asset Purchase Agreement (AP), to acquire 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. Impact of Coronavirus Aid, Relief, and Economic Security Act The Coronavirus Aid, Relief and Economic Security Act (the "CARES Act") was enacted in March 2020 in response to the COVID-19 pandemic. The CARES Act and related rules and guidelines include several significant provisions, including delaying certain payroll tax payments, mandatory transition tax payments, and estimated income tax payments that we are deferring to future periods. As a result, the Company delayed payment of certain payroll tax payments in the amount of $19,517 as of March 31, 2021 and June 30, 2020, respectively. In April 2020, the Company applied for an unsecured loan (the "PPP Loan") under the Paycheck Protection Program (PPP). The PPP was established under The CARES Act and is administered by the U.S. Small Business Administration (SBA). The PPP loan was approved and funded, and the Company entered into an unsecured loan of approximately $311,000. The PPP loan matures in April 2022 and accrues interest at an annual rate of 0.98%. The promissory note evidencing the PPP Loan contains customary events of default relating to, among other things, payment defaults and provisions of the promissory note. In accordance with the requirements of the CARES Act, the Company used the proceeds from the PPP Loan primarily for payroll costs. See Note 6. In May 2020, the Company received a loan from the SBA under Section 7(b) of the Small Business Act. The $150,000 secured loan matures in May 2050 and accrues interest at an annual rate of 3.75%. The promissory note is collateralized by a security interest in substantially all assets of the Company. The loan proceeds are to fund working capital needs due to economic injury caused by the COVID-19 pandemic. See Note 6. 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, 2020 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 14. All intercompany transactions and accounts have been eliminated in the consolidation. The CompanyÂ’s common stock is traded on over-the-counter markets under the stock symbol GAXY. Capital Structure In accordance with ASC 505, Equity, the Company's capital structure is as follows: March 31, 2021 Authorized Issued Outstanding Common stock 4,000,000,000 2,860,944,203 2,810,905,578 $.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 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 June 30, 2020 Authorized Issued Outstanding Common stock 4,000,000,000 628,039,242 628,000,617 $.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. There are 399,163,143 common shares reserved at March 31, 2021 under terms of the convertible debt agreements, Stock Plan and Equity Purchase Agreement (see Notes 6, 13 and 15). There are 194,683,306 issued common shares that are restricted as of March 31, 2021. The shares may become free-trading upon satisfaction of certain terms and regulatory conditions. Accounts Receivable Management deemed no allowance for doubtful accounts was necessary at March 31, 2021 and June 30, 2020. At March 31, 2021 and June 30, 2020, $758,481 and $670,031 of total accounts receivable were considered unbilled and recorded as deferred revenue. The Company factored approximately $600,000 and $0 of accounts receivable during the nine months ended March 31, 2021 and year ended June 30, 2020, respectively. For the three months and nine months ended March 31, 2021, expenses on sale of trade receivables was inconsequential. Inventories Management estimates $67,635 of inventory reserves at March 31, 2021 and June 30, 2020. Goodwill and Intangible Assets Management of the Company determined that a triggering event to assess goodwill impairment occurred during the year ended June 30, 2020 due to the separation of a key executive associated with their acquisition of Concepts and Solutions. While there was no single determinative event, the consideration in totality of several factors that developed led management to conclude that it was more likely than not that the fair values of certain intangible assets and goodwill acquired as part of that acquisition were below their carrying amounts. These factors included: a) former key executive separating from the Company; b) respective former key executive violating his noncompete changing the use and value of it; c) sustained decrease in the Company's share price which reduced market capitalization; and d) uncertainty in the United States and global economies due to Covid-19. As a result, the Company recorded a non-cash impairment loss of approximately $2,000,000, including $800,287 related to goodwill and $1,200,000 related to finite-lived intangible assets. No such impairment charge was recorded during the three or nine months ended March 31, 2021. Recent Accounting Pronouncements In January 2020, the FASB issued 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 2020-01 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 is currently evaluating the impacts of adoption of the new guidance to its consolidated financial statements. 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 is currently evaluating the impacts of adoption of the new guidance to its 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 is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. 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. Reclassification Certain amounts in the current period financial statements have been reclassified in order to conform to the current year presentation. |
Contract Balances
Contract Balances | 9 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Contract Balances | Note 2 - Contract Balances Contract assets and contract liabilities are as follows: March 31, 2021 June 30, 2020 Contract assets $ - $ - Contract liabilities 217,134 463,961 |
Property and Equipment
Property and Equipment | 9 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 3 - Property and Equipment Property and equipment are comprised of the following at: March 31, 2021 June 30, 2020 Vehicles $ 115,135 $ 115,135 Equipment 22,877 6,097 Furniture and fixtures 25,085 24,335 163,097 145,567 Accumulated depreciation (104,807) (93,518) Property and equipment, net $ 58,290 $ 52,049 Depreciation expense was $4,641 and $10,011 for the three months ended March 31, 2021 and 2020, respectively. Depreciation expense was $11,289 and $27,855 for the nine months ended March 31, 2021 and 2020, respectively. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 4 - Intangible Assets Customer Lists and Vendor Relationships Intangible assets are stated at the lower of cost or fair value. Customer lists and vendor relationships are amortized on a straight-line basis over five years, representing the period over which the Company expects to receive future economic benefits from these assets. Amortization of customer lists and vendor relationships was $70,343 and $0 for the three months ended March 31, 2021 and 2020, respectively. Amortization of customer lists and vendor relationships was $208,296 and $0 for the nine months ended March 31, 2021 and 2020, respectively. Amortization of these costs are included in general and administrative expenses in the Company's condensed consolidated statements of operations. Product Development Costs Annual amortization expense is calculated based on the straight-line method over the product's estimated economic life. Amortization of product development costs incurred begins when the related products are available for sale to customers. Amortization of product development costs was $26,436 and $0 for the three months ended March 31, 2021 and 2020, respectively. Amortization of product development costs was $59,364 and $0 for the nine months ended March 31, 2021 and 2020, respectively. Amortization of these costs are included in cost of sales in the Company's condensed consolidated statements of operations. The following tables shows goodwill, finite-lived intangible assets, accumulated amortization, and the impairment charges: March 31, 2021 Cost Accumulated Amortization Net Book Value Impairment Total Goodwill $ 834,220 $ - $ 834,220 $ - $ 834,220 Finite-lived assets: Customer list $ 922,053 $ (268,063) $ 653,990 $ - $ 653,990 Vendor relationships 484,816 (144,233) 340,583 - 340,583 Capitalized product development costs 402,255 (60,900) 341,355 - 341,355 $ 1,809,124 $ (473,196) $ 1,335,928 $ - $1,335,928 June 30, 2020 Cost Accumulated Amortization Net Book Value Impairment Total Goodwill $ 1,634,507 $ - $ 1,634,507 $ (800,287) $ 834,220 Finite-lived assets: Customer list $ 881,000 $ (132,147) $ 748,853 $ - $ 748,853 Vendor relationships 479,000 (71,847) 407,153 - 407,153 Noncompete agreements 1,600,000 (400,000) 1,200,000 (1,200,000) - Capitalized product development costs 281,845 (1,536) 280,309 - 280,309 $ 3,241,845 $ (605,530) $ 2,636,315 $(1,200,000) $1,436,315 Estimated amortization expense related to intangible assets for the next five years is as follows: Period ending March 31, 2022 $ 387,118 2023 387,118 2024 347,598 2025 187,885 2026 26,209 $ 1,335,928 |
Lines of Credit
Lines of Credit | 9 Months Ended |
Mar. 31, 2021 | |
Line of Credit Facility [Abstract] | |
Lines of Credit | Note 5 - Lines of Credit The Company has an available $1,000,000 and $1,250,000 line of credit at March 31, 2021 and June 30, 2020, respectively, bearing interest at prime plus 0.5% (3.75% at March 31, 2021 and 4.25% at June 30, 2020). The line of credit was renewed in October 2020 at a reduced available credit line, change in collateral, and a new expiration date of October 29, 2021. The renewed line of credit is collateralized by certain real estate owned by a family member of a stockholder, 50,000,000 shares of the Company's common stock par value $0.0001 per share (the "Common Stock") and the personal stock of two stockholders, and a key man life insurance policy. A minimum average bank balance of $50,000 was required on the line of credit agreement at June 30, 2020, but this requirement was removed in October 2020. The outstanding balance is $991,598 and $1,236,598 at March 31, 2021 and June 30, 2020, respectively. The Company has a $1,000,000 available credit line under an accounts receivable factoring agreement through July 30, 2022. No amounts were outstanding as of March 31, 2021. See Note 13. |
Notes Payable
Notes Payable | 9 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Notes Payable | Note 6 - Notes Payable Long Term Notes Payable March 31, 2021 June 30, 2020 Note payable with a bank bearing interest at 4% and maturing on June 26, 2020. The note was renewed by the lender with a revised maturity of June 26, 2021 and a lowered interest rate to 3%. The renewal provides for monthly interest payments and a balloon payment of outstanding principal and interest at maturity. The note is collateralized by a certificate of deposit owned by a related party. $274,539 $274,900 Long term PPP loan under the CARES Act bearing interest at 0.98% and maturing in April 2022. Monthly installments of principal and interest of $13,137 begin in October 2020. Payments on the loan are subject to application for SBA forgiveness submitted in 2021. 310,832 310,832 Long term loan under Section 7(b) of the Economic Injury Disaster Loan program bearing interest at 3.75% and maturing in May 2050. Monthly installments of principal and interest of $731 begin in May 2021. 150,000 150,000 Note payable to an investor bearing interest of 10% and maturing on January 13, 2022 with monthly installments of principal and interest of $45,294 beginning in June 2021. 385,000 - Financing lease liabilities for offices and warehouses with monthly installments of $12,449 (ranging from $1,083 to $3,524) over terms expiring through July 2023. 186,119 223,982 Financing leases with a related party for delivery vehicles with monthly installments totaling $813, including interest, over five year terms expiring through July 2020. - 1,245 Note payable with a finance company for delivery vehicle with monthly installments totaling $679 including interest at 8.99% over a six year term expiring in December 2025. 32,374 34,019 Total Notes Payable 1,338,864 994,978 Current Portion of Notes Payable 940,011 512,425 Long-term Portion of Notes Payable $ 398,853 $ 482,553 Future minimum principal payments on the long-term notes payable to unrelated parties are as follows: Period ending March 31, 2022 $ 940,011 2023 149,076 2024 26,305 2025 16,035 2026 14,662 Thereafter 192,775 $ 1,338,864 Convertible Notes March 31, 2021 June 30, 2020 On March 28, 2019, the Company signed a convertible promissory note with an investor. The $225,000 note was issued at a discount of $20,000 and bears interest at 10% per year. The Company issued 25,000 common shares to the investor. Three draws of $56,250, $112,500, and $56,250 were borrowed under this note. The note principal and interest were convertible into shares of common stock at the lower of (a) 70% of the lowest traded price of the common stock during the 20 trading days immediately preceding the notice of conversion or (b) $3 per share, beginning in September 2019. The note had prepayment penalties ranging from 110% to 125% of the principal and interest outstanding if repaid within 60 to 180 days from issuance. The note matured in three intervals in March 2020, June 2020, and November 2020. The note was repaid by conversion to stock. $ - $24,150 On November 18, 2019, the Company signed a convertible promissory note with an investor. The $110,000 note was issued at a discount of $10,000 and bore interest at 8% per year. The note principal and interest were convertible into shares of common stock at the lower of (a) 70% of the lowest traded price of common stock during the 15 trading days prior to the issue date or (b) 70% of the lowest traded price for the common stock during the 15 trading days prior to conversion of the note. The note matured in November 2020. The note had prepayment penalties between 115% and 125% of the principal and interest outstanding if repaid before 180 days from issuance. The note was repaid by conversion to stock. - 1,000 On December 11, 2019, the Company signed a convertible promissory note with an investor. The $220,430 note was issued at a discount of $15,430 and bore interest at 8% per year. The note principal and interest were convertible into shares of common stock at the lower of (a) $0.46 per share or (b) 75% of the lowest trading price of common stock during the 10 trading days prior to conversion beginning in June 2020. The note matured in December 2020. The note had prepayment penalties between 120% and 130% of the principal and interest outstanding if repaid before 180 days from issuance. The note was repaid by conversion to stock. - 121,200 On November 25, 2019, the Company signed a convertible promissory note with an investor. The $1,000,000 note was issued at a discount of $70,000 and bore interest at 8% per year. The note principal and interest up to $250,000 every 30-day calendar period were convertible into shares of common stock at the lower of (a) 75% of the lowest traded price of the common stock during the 10 trading days immediately preceding the notice of conversion or (b) $0.46 per share. The note matured in November 2020. The note had a redemption premium of 115% of the principal and interest outstanding if repaid before maturity. The note was repaid by conversion to stock. - 825,000 On January 9, 2020, the Company entered into a $225,000 convertible note. The $225,000 note was issued at a discount of $13,500 and bore interest at 8% per year. The note principal and interest were convertible into shares of common stock at the lower of (a) 75% of the lowest traded price of the common stock during the 10 trading days immediately preceding the notice of conversion or (b) the lowest traded price of the common stock during the 10 trading days prior to the issuance of this note. The note matured in October 2020. The note had prepayment penalties of 110% to 125% of the principal and interest outstanding if repaid before 180 days from issuance. The principal amount of the note was increased by $25,000 due to the value of the stock price at conversion. The note was repaid by conversion to stock. - 250,000 On March 25, 2020, the Company signed a convertible promissory note with an investor. The $338,625 note was issued at a discount of $23,625 and bore interest at 8% per year. The note principal and interest were convertible into shares of common stock at the lower of (a) $0.46 per share or (b) 75% of the lowest trading price of common stock during the 10 trading days prior to conversion. The note matured in March 2021. The note had prepayment penalties between 120% and 130% of the principal and interest outstanding if repaid before 180 days from issuance. The note was repaid by conversion to stock. - 338,625 On June 26, 2020, the Company signed a convertible promissory note with an investor. The $430,000 note was issued at a discount of $30,000 and bears interest at 8% per year. The note principal and interest were convertible into shares of common stock at the lower of (a) $0.47 per share or (b) 70% of the lowest trading price of common stock during the 10 trading days prior to conversion. The had note maturity of June 2021. The note had prepayment penalties between 120% and 130% of the principal and interest outstanding if repaid before 180 days from issuance. The note was repaid by conversion to stock. - 430,000 Total Convertible Notes Payable - 1,989,975 Less: Unamortized original issue discounts - 888,075 Current Portion of Convertible Notes Payable - 1,101,900 Long-term Portion of Convertible Notes Payable $ - $ - The original issue discount is being amortized over the terms of the convertible notes using the effective interest method. During the three months ended March 31, 2021 and 2020, the Company amortized $8,750 and $91,338, respectively, of debt discounts to interest expense and $0 and $603,852, respectively, to interest accretion. During the nine months ended March 31, 2021 and 2020, the Company amortized $256,452 and $247,794, respectively, of debt discounts to interest expense and $766,603 and $1,412,705, respectively, to interest accretion. Convertible notes are subordinate to the bank debt of the Company. Accrued but unpaid interest on the notes is convertible by the lender into, and payable by the Company in common shares at a price per common share equal to the most recent closing price of the Company's common shares prior to the delivery to the Company of a request to convert interest, or the due date of interest, as applicable. Interest, when due, is payable either in cash or common shares. The conversion features meet the definition of a derivative liability instrument because the conversion rate is variable and therefore does not meet the "fixed-for-fixed" criteria outlined in ASC 815-40-15. As a result, the conversion features of the notes are recorded as a derivative liability at fair value and marked-to-market each period with the changes in fair value each period charged or credited to other income (expense). |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 7 - Fair Value Measurements The following table presents information about the assets and liabilities that are measured at fair value on a recurring basis at March 31, 2021 and June 30, 2020 and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. At March 31, 2021 Total Level 1 Level 2 Level 3 Assets Customer list $653,990 - - $653,990 Vendor relationship 340,583 - - 340,583 Development costs 341,355 - - 341,355 $1,335,928 - - $1,335,928 Liabilities Original issue discount, convertible debt $3,376,000 - - $3,376,000 At June 30, 2020 Total Level 1 Level 2 Level 3 Assets Customer list $748,853 - - $748,853 Vendor relationship 407,153 - - 407,153 Development costs 280,309 - - 280,309 $1,436,315 - - $1,436,315 Liabilities Original issue discount, convertible debt $213,300 - - $213,300 Derivative liability warrants 33,312 - - 33,312 Total $246,612 - - $246,612 As of March 31, 2021, and June 30, 2020, the only asset required to be measured on a nonrecurring basis was goodwill and the fair value of the asset amounted to $834,220 using level 3 valuation techniques. The Company measures the fair market value of the Level 3 liability components using the Monte Carlo model and projected discounted cash flows, as appropriate. These models were prepared by an independent third party and consider management's best estimate of the conversion price of the stock, an estimate of the expected time to conversion, an estimate of the stock's volatility, and the risk-free rate of return expected for an instrument with a term equal to the duration of the convertible note. The derivative liability was valued using the Monte Carlo pricing model with the following inputs: At March 31, 2021 Risk-free interest rate: 0.05% Expected dividend yield: 0.00% Expected stock price volatility: 305.00% Expected option life in years: 0.62 to 0.95 years At June 30, 2020 Risk-free interest rate: 0.09% Expected dividend yield: 0.00% Expected stock price volatility: 300.00% Expected option life in years: .089 to 1.69 years The following table sets forth a reconciliation of changes in the fair value of the Company's convertible debt components classified as Level 3 in the fair value hierarchy at March 31, 2021 and June 30, 2020: Balance at June 30, 2020 $ 246,612 Additional convertible securities at inception 2,000 Realized (55,612) Unrealized 3,183,000 Ending balance at March 31, 2021 $ 3,376,000 Balance at June 30, 2019 $ 1,025,944 Additional convertible securities at inception 2,027,000 Settlement of conversion features and warrants (152,374) Realized (240,903) Unrealized (2,413,055) Ending balance at June 30, 2020 $ 246,612 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 8 - Related Party Transactions Notes Payable March 31, 2021 June 30, 2020 Note payable to a stockholder in which the $200,000 principal plus $10,000 of interest was payable in December 2019. Borrowings under the note increased to $400,000 and the maturity was extended to November 2021. The note bears interest at 6% interest and is payable in cash or common stock, at the Company's option. If interest is paid in common stock, the conversion price will be the market price at the time of conversion. Principal on the note at maturity is convertible into 400,000 shares of Series D Preferred Stock. If principal is paid prior to maturity, the right of conversion is terminated. $400,000 $400,000 Fair value of unsecured notes payable to seller of Concepts and Solutions, a related party, bearing interest at 3% per year, payable in annual installments through November 30, 2021. Payments are subject to adjustment based on the achievement of minimum gross revenues and successful completion of certain pre-acquisition withholding tax issues of Concepts and Solutions. 1,030,079 1,030,079 Note payable to a stockholder in which the note principal plus 6% interest is payable in November 2021. Note was amended in March 2020 by increasing the balance to $1,225,000 and extending the maturity to March 2022. Interest is payable in cash or common stock, at the holder's option. If interest is paid in common stock, the conversion price will be the market price at the time of conversion. Principal on the note at maturity is convertible into 1,000,000 shares of Series D Preferred Stock. If principal is paid prior to maturity, the right of conversion is terminated. 1,225,000 1,225,000 Note payable to a stockholder in which the note principal plus 6% interest is payable in November 2021. Interest is payable in cash or common stock, at the Company's option. If interest is paid in common stock, the conversion price will be the market price at the time of conversion. Principal on the note at maturity is convertible into 200,000 shares of Series D Preferred Stock. If principal is paid prior to maturity, the right of conversion is terminated. 200,000 200,000 Note payable to a stockholder in which the note principal plus interest at 10% is payable the earlier of 60 days after invoicing a certain customer, or December 31, 2021, due to an extension granted by the lender. The note is collateralized by a security interest in a certain customer purchase order. 385,000 385,000 Note payable to a stockholder which is, upon the option of the stockholder, immediately convertible into restricted common shares. 500,000 - Note payable related to acquisition of Classroom Tech in which the note principal is payable in 2021 with no interest obligations, upon the shareholder's resolution of a pre-acquisition liability with a bank. 111,164 - Note payable related to the acquisition of Classroom Tech in which the note principal is payable in 2021 with no interest obligations. 44,526 - Other short-term payables due to stockholders and related parties 88,991 107,733 Total Related Party Notes Payable and Other Payables 3,984,760 3,347,812 Current Portion of Related Party Notes Payable and Other Payables 3,984,760 1,272,812 Long-term Portion of Related Party Notes Payable and Other Payables $ - $2,075,000 Leases The Company leases property used in operations from a related party under terms of a financing lease. The term of the lease expires on December 31, 2021. The monthly lease payment is $1,500 plus maintenance and property taxes, as defined in the lease agreement. The lease was amended, and the monthly lease payment increased to $9,664 per month. Rent expense for this lease was $89,500 and $98,500 for the three and nine months ended March 31, 2021 and 2020, respectively. Other Agreements A related party collateralizes the Company's short-term note with a certificate of deposit in the amount of $274,900, held at the same bank. The related party will receive a $7,500 collateral fee for this service (see Note 6). |
Lease Agreements
Lease Agreements | 9 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Lease Agreements | Note 9 - Lease Agreements The Company has financing lease liabilities for offices and warehouses with monthly installments of $12,449 (ranging from $1,083 to $3,524) including imputed interest (ranging from 0% to 2%), over 2-year terms plus extensions, expiring through July 2023. Right-of-use assets: Operating right-of-use assets $176,624 Operating lease liabilities: Current portion of long term payable 110,099 Financing leases payable, less current portion 76,020 Total financing lease liabilities $186,119 As of March 31, 2021, financing lease maturities are as follows: Period ending March 31, 2022 $110,099 2023 76,020 $186,119 As of March 31, 2021, the weighted average remaining lease term was 1.2 years. |
Equity
Equity | 9 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Equity | Note 10 - Equity During the nine months ended March 31, 2021, the Company issued 105,800,000 shares of common stock for professional consulting services. These shares were valued at $2,778,550 upon issuance during the nine months ended March 31, 2021. During the nine months ended March 31, 2021, the Company issued 1,382,812,744 shares of common stock for debt reduction. These shares were valued at $13,031,235. During the nine months ended March 31, 2021, the Company issued 249,792,217 shares of common stock to warrant holders in six cashless transactions. During the nine months ended, the Company issued 5,000,000 shares of common stock for commitment shares under a one year note payable issued on January 13, 2021 to an investor. During the nine months ended March 31, 2021, the Company issued 377,000,000 shares of common stock in exchange for proceeds under the Equity Purchase agreement. These shares were valued at $8,292,400 upon issuance during the nine months ended March 31, 2021. During the nine months ended March 31, 2021, the Company issued 50,000,000 shares of common stock as collateral for the line of credit. The shares are held in the CompanyÂ’s name and serve as collateral. During the nine months ended March 31, 2021, the Company issued 10,000,000 shares of common stock for the acquisition of Classroom Technology Solutions, Inc. These shares were valued at $151,000 upon issuance during the nine months ended March 31, 2021. |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11 - Income Taxes The Company's effective tax rate differed from the federal statutory income tax rate for the nine months ended March 31, 2021 and 2020 as follows: Federal statutory rate 21% State tax, net of federal tax effect 5.31% Valuation allowance -26% Effective tax rate 0% The Company had no federal or state income tax (benefit) for the nine months ended March 31, 2021 or 2020. The Company's deferred tax assets and liabilities as of March 31, 2021 and June 30, 2020, are summarized as follows: March 31, 2021 June 30, 2020 Federal Deferred tax assets $ 9,719,000 $ 4,825,100 Less valuation allowance (9,719,000) (4,825,100) Deferred tax liabilities - - - - State Deferred tax assets 2,595,300 1,290,900 Less valuation allowance (2,595,300) (1,290,900) Deferred tax liabilities - - - - Net Deferred Tax Assets $ - $ - The Company's policy is to provide for deferred income taxes based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates that will be in effect when the differences are expected to reverse. The Company has not generated taxable income and has not recorded any current income tax expense at March 31, 2021 and 2020, respectively. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred taxes is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers projected future taxable income and tax planning strategies in making this assessment. The Company's deferred tax assets are primarily comprised of net operating losses ("NOL") that give rise to deferred tax assets. The NOL carryforwards expire over a range from 2021 to 2037, with certain NOL carryforwards that have no expiration. There is no tax benefit for goodwill impairment, which is permanently non-deductible for tax purposes. Additionally, due to the uncertainty of the utilization of NOL carry forwards, a valuation allowance equal to the net deferred tax assets has been recorded. The significant components of deferred tax assets as of March 31, 2021 and June 30, 2020, are as follows: March 31, 2021 June 30, 2020 Net operating loss carryforwards $ 11,962,800 $ 5,767,000 Valuation allowance (12,314,300) (6,116,000) Goodwill 256,800 278,900 Property and equipment (13,500) (10,500) Intangible assets 63,400 35,800 Inventory allowance 17,800 17,800 Warranty accrual and other 27,000 27,000 Net Deferred Tax Assets $ - $ - As of March 31, 2021, the Company does not believe that it has taken any tax positions that would require the recording of any additional tax liability nor does it believe that there are any unrealized tax benefits that would either increase or decrease within the next twelve months. As of March 31, 2021, the Company's income tax returns generally remain open for examination for three years from the date filed with each taxing jurisdiction. |
Commitments, Contingencies, and
Commitments, Contingencies, and Concentrations | 9 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies, and Concentrations | Note 12 - Commitments, Contingencies, and Concentrations Contingencies Certain conditions may exist as of the date the condensed consolidated financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company's management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company's legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company's condensed consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed. On September 4, 2020, the Company recorded a pre-acquisition liability for approximately $591,000 relative to unpaid payroll tax liabilities and associated penalties and fees of Concepts and Solutions. The liability is included with the seller note payable. On August 14, 2021, the Company entered into a legal settlement agreement and recorded a liability for $2,000,000 related to a lawsuit by a previous creditor of Galaxy CO. The liability of $918,240 and $2,000,000 is included in the consolidated balance sheets at March 31, 2021 and June 30, 2021. This legal settlement was fully repaid subsequent to March 31, 2021 (Note 17). Concentrations Galaxy contracts the manufacturer of its products with overseas suppliers. The Company's sales could be adversely impacted by a supplier's inability to provide Galaxy with an adequate supply of inventory. Galaxy has two customers that accounted for approximately 73% of accounts receivable at March 31, 2021, and three customers that accounted for approximately 79% of accounts receivable at June 30, 2020. Galaxy has four customers that accounted for approximately 52% and two customers that accounted for 34% of total revenue for the nine months ended March 31, 2021, respectively. From time to time, the Company has on deposit, in institutions whose accounts are insured by the Federal Deposit Insurance Corporation, funds in excess of the insured maximum. The at-risk amount is subject to significant daily fluctuation. The Company has never experienced any losses related to these balances, and as such, the Company does not believe it is exposed to any significant risk. |
Material Agreements
Material Agreements | 9 Months Ended |
Mar. 31, 2021 | |
Disclosure of Material Agreements [Abstract] | |
Material Agreements | Note 13 - Material Agreements Equity Purchase Agreement On May 31, 2020, the Company entered into a two-year purchase agreement (the "Equity Purchase Agreement") with an investor, which was amended and restated on July 9, 2020 and then again on December 29, 2020. Pursuant to the terms of the Equity Purchase Agreement, the investor agreed to purchase up to $10 million of the Company's common stock (subject to certain limitations) from time to time during the term of the Equity Purchase Agreement. The Company issued a total of 50,000,000 shares of common stock to the investor as consideration for its commitment to purchase shares of the Company's common stock. Pursuant to the terms and conditions of the second amended and restated agreement on December 29, 2020, the Company sold, and the investor purchased 100 million shares of the CompanyÂ’s common stock for an aggregate purchase price of $500,000. These shares are not yet issued and therefore, the purchase price is recorded as a related party payable to the investor (Note 8). The Company will use proceeds from shares issued to the investor for working capital and general and administrative expenses. Accounts Receivable Factoring Agreement On July 30, 2020, the Company entered into a two-year accounts receivable factoring agreement with a financial services company to provide working capital. Pursuant the agreement, the financial services company will pay the Company as the purchase price for the purchased accounts, an amount up to eighty percent (80%). Factoring fees are 2.5% of the face value of the account receivable sold to the factoring agent per month until collected. For collections over 90 days from the invoice date, the fee increases to 3.5%. The agreement contains a credit line of $1,000,000 and requires a minimum of $300,000 of factored receivables per calendar quarter. The agreement includes early termination fees and is guaranteed by the Company and the by two of the stockholders individually. The Company factored approximately $600,000 and $0 of accounts receivable as of March 31, 2021 and June 30, 2020, respectively. Employment Agreements On January 1, 2020, the Company entered into an employment agreement with the Chief Executive Officer (CEO) of the Company for a two-year term which was amended on September 1, 2020. Under the amended employment agreement, the CEO will receive annual compensation of $500,000, and an annual discretionary bonus based on profitability and revenue growth. The agreement includes a non-compete agreement and severance benefits of $90,000. On January 1, 2020, the Company entered into an employment agreement with the Chief Finance Officer (CFO) of the Company, who then also served as our Chief Operating Officer, for a two-year term, which was amended on September 1, 2020. Under the amended employment agreement, the CFO will receive annual compensation of $250,000, and an annual discretionary bonus based on profitability and revenue growth. The agreement includes a non-compete agreement and severance benefits of $72,000. On February 1, 2021, the Company entered into an employment agreement with the Chief Operations Officer (COO) of the Company for a one-year term. Under the employment agreement, the COO, will receive annual compensation of $140,000, and quarterly and annual discretionary bonus based on profitability and revenue growth. The agreement includes an initial issuance of common stock in the form of Rule 144 stock. Subsequent stock issuances to be available on an annual basis upon renewal of agreement. Supply Agreement The Company is party to a one-year supplier agreement to manufacture and sell audio products to a buyer that is effective until July 2021. The initial order under this supplier agreement is for 4,000 units, at a discounted total price of $3,488,000, to be delivered over the agreement period. If the buyer does not meet the minimum floor of 4,000 units, then the contract becomes void and the buyer must pay the difference between the units sold and the total floor pricing of the $3,488,000. The buyer will pay tooling costs of $25 per unit shipped to them. The Company supplied 1,051 units as of March 31, 2021. The agreement was extended in July 2020 for a one-year term. The agreement can be extended for one additional year. |
Acquisition
Acquisition | 9 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisition | Note 14 - Acquisition Concepts and Solutions On September 4, 2019, Galaxy entered into a stock purchase agreement with Concepts and Solutions. Under the terms of the stock purchase agreement, 100% of the outstanding capital for both Concepts and Solutions was purchased by Galaxy. Concurrent with this acquisition, the Company applied pushdown accounting; therefore, the consolidated financial statements after completion of the acquisition include the assets, liabilities, and results of operations of the combined company from and after the closing date. As part of the stock purchase agreement, Galaxy issued 1,350,000 shares of common stock to the seller with a value of $1,485,000. In addition to the issuance of shares of common stock, the Company entered into three promissory notes with the seller for a total note payable of $3,000,000. Payments under the notes are subject to adjustment based on the achievement of minimum gross revenues and successful resolution of certain pre-acquisition payroll withholding tax issues of Concepts and Solutions. The Company believes future earnings goals will not be met and valued the note payable at $1,484,473. The balance of the note payable is $1,030,079 at March 31, 2021 and June 30, 2020. Management of the Company determined that a triggering event to assess the impairment of goodwill associated with the acquisition of Concepts and Solutions occurred during the year ended June 30, 2020. While there was no single event, the consideration in totality of several factors that developed during this year led management to conclude that it was more likely than not that the fair values of certain intangible assets and goodwill acquired as part of the acquisition were below their carrying amounts. See Note 4. The following table summarizes the preliminary allocation of the fair value of the assets and liabilities as of the acquisition date through pushdown accounting. The preliminary allocation to certain assets and/or liabilities may be adjusted by material amounts as the Company finalizes fair value estimates. Assets Cash $ 201,161 Accounts receivable 1,165,953 Inventory 94,360 Property and equipment 20,904 Other assets 2,800 Goodwill and other intangibles 3,760,287 Total Assets 5,245,465 Liabilities Accounts payable 1,225,734 Accrued expenses 783,540 Short-term debt 96,941 Deferred revenue 518,900 Total Liabilities 2,625,115 Net Assets $ 2,620,350 Consideration Fair value of anti-dilution clause in employment agreement $ 235,350 Note payable to seller 900,000 Stock 1,485,000 $ 2,620,350 Classroom Technologies Solutions, Inc. On October 15, 2020, the Company entered into an Asset Purchase Agreement, to acquire 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. The following table summarizes the allocation of the fair value of the assets as of the acquisition date through pushdown accounting. Assets Cash $ 38,836 Accounts receivable 31,710 Inventory 209,431 Property and equipment 17,530 Other assets 1,150 Goodwill and other intangibles 46,869 Total Assets $ 345,526 Consideration Notes payable to seller and related party of seller $ 164,526 Bonus program 30,000 Stock 151,000 $ 345,526 |
Stock Plan
Stock Plan | 9 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Plan | Note 15 - Stock Plan An Employee, Directors, and Consultants Stock Plan was established by the Company (the "Plan"). The Plan is intended to attract and retain employees, directors and consultants by aligning the economic interest of such individuals more closely with the Company's stockholders by paying fees or salaries in the form of shares of the Company's common stock. The Plan is renewed annually or earlier. The 2020 Plan is effective September 16, 2020 and expires December 15, 2021. The 2019 Plan is effective December 13, 2018 and expires June 1, 2020. 99,250,000 Shares of Common Stock are reserved for stock awards under the Plans. There were 98,857,857 and 965,000 shares awarded under the Plans as of March 31, 2021 and June 30, 2020, respectively. |
Going Concern
Going Concern | 9 Months Ended |
Mar. 31, 2021 | |
Disclosure of Going Concern [Abstract] | |
Going Concern | Note 16 - Going Concern The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As reflected in the accompanying consolidated financial statements, the Company had negative working capital of approximately $7,791,000 an accumulated deficit of approximately $47,290,000, and cash used in operations of approximately $6,895,000 at March 31, 2021. The Company's operational activities has primarily been funded through issuance of common stock for services, related party advances, equity purchase agreement transactions for proceeds, accounts receivable factoring, debt financing and through the deferral of accounts payable and other expenses. The Company intends to raise additional capital through the sale of equity securities or borrowings from financial institutions and investors and possibly from related and nonrelated parties who may in fact lend to the Company on reasonable terms. Management believes that its actions to secure additional funding will allow the Company to continue as a going concern. There is no guarantee the Company will be successful in achieving any of these objectives. These sources of working capital are not assured, and consequently do not sufficiently mitigate the risks and uncertainties disclosed above. The ability of the Company to continue as a going concern is dependent upon management's ability to raise capital from the sale of its equity and, ultimately, the achievement of operating revenues. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 17 - Subsequent Events On April 7, 2021, approximately $950,000 was paid to settle the legal settlement agreement discussed in Note 12. On April 5, 2021, the Company issued 50,000,000 shares to an investor in exchange for proceeds of approximately $500,000 under the Purchase Agreement dated May 2020, as amended and restated on July 9, 2020 and on December 29, 2020 (Note 13). On April 19, 2021, the Company issued 30,000,000 shares to an investor in exchange for expected proceeds of approximately $472,000 under the Purchase Agreement dated May 2020, as amended and restated on July 9, 2020 and on December 29, 2020 (Note 13). On April 29, 2021, the Company issued 100,000,000 shares to an investor to satisfy a $500,000 note payable to related party investor (Note 8). |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2021 | |
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, its own Intercom, Bell, and Paging solution, as well as numerous other national and international branded peripheral and communication devices for safety and security purposes. 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 OEM division where it manufacturers products for other vendors in their industry and white labels the products under other brands. Solutions and 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. These 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, the Company entered into an Asset Purchase Agreement (AP), to acquire 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. |
Impact of Coronavirus Aid, Relief, and Economic Security Act | Impact of Coronavirus Aid, Relief, and Economic Security Act The Coronavirus Aid, Relief and Economic Security Act (the "CARES Act") was enacted in March 2020 in response to the COVID-19 pandemic. The CARES Act and related rules and guidelines include several significant provisions, including delaying certain payroll tax payments, mandatory transition tax payments, and estimated income tax payments that we are deferring to future periods. As a result, the Company delayed payment of certain payroll tax payments in the amount of $19,517 as of March 31, 2021 and June 30, 2020, respectively. In April 2020, the Company applied for an unsecured loan (the "PPP Loan") under the Paycheck Protection Program (PPP). The PPP was established under The CARES Act and is administered by the U.S. Small Business Administration (SBA). The PPP loan was approved and funded, and the Company entered into an unsecured loan of approximately $311,000. The PPP loan matures in April 2022 and accrues interest at an annual rate of 0.98%. The promissory note evidencing the PPP Loan contains customary events of default relating to, among other things, payment defaults and provisions of the promissory note. In accordance with the requirements of the CARES Act, the Company used the proceeds from the PPP Loan primarily for payroll costs. See Note 6. In May 2020, the Company received a loan from the SBA under Section 7(b) of the Small Business Act. The $150,000 secured loan matures in May 2050 and accrues interest at an annual rate of 3.75%. The promissory note is collateralized by a security interest in substantially all assets of the Company. The loan proceeds are to fund working capital needs due to economic injury caused by the COVID-19 pandemic. See Note 6. |
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 our June 30, 2020 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 14. All intercompany transactions and accounts have been eliminated in the consolidation. The CompanyÂ’s common stock is traded on over-the-counter markets under the stock symbol GAXY. |
Capital Structure | Capital Structure In accordance with ASC 505, Equity, the Company's capital structure is as follows: March 31, 2021 Authorized Issued Outstanding Common stock 4,000,000,000 2,860,944,203 2,810,905,578 $.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 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 June 30, 2020 Authorized Issued Outstanding Common stock 4,000,000,000 628,039,242 628,000,617 $.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. There are 399,163,143 common shares reserved at March 31, 2021 under terms of the convertible debt agreements, Stock Plan and Equity Purchase Agreement (see Notes 6, 13 and 15). There are 194,683,306 issued common shares that are restricted as of March 31, 2021. The shares may become free-trading upon satisfaction of certain terms and regulatory conditions. |
Accounts Receivable | Accounts Receivable Management deemed no allowance for doubtful accounts was necessary at March 31, 2021 and June 30, 2020. At March 31, 2021 and June 30, 2020, $758,481 and $670,031 of total accounts receivable were considered unbilled and recorded as deferred revenue. The Company factored approximately $600,000 and $0 of accounts receivable during the nine months ended March 31, 2021 and year ended June 30, 2020, respectively. For the three months and nine months ended March 31, 2021, expenses on sale of trade receivables was inconsequential. |
Inventories | Inventories Management estimates $67,635 of inventory reserves at March 31, 2021 and June 30, 2020. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Management of the Company determined that a triggering event to assess goodwill impairment occurred during the year ended June 30, 2020 due to the separation of a key executive associated with their acquisition of Concepts and Solutions. While there was no single determinative event, the consideration in totality of several factors that developed led management to conclude that it was more likely than not that the fair values of certain intangible assets and goodwill acquired as part of that acquisition were below their carrying amounts. These factors included: a) former key executive separating from the Company; b) respective former key executive violating his noncompete changing the use and value of it; c) sustained decrease in the Company's share price which reduced market capitalization; and d) uncertainty in the United States and global economies due to Covid-19. As a result, the Company recorded a non-cash impairment loss of approximately $2,000,000, including $800,287 related to goodwill and $1,200,000 related to finite-lived intangible assets. No such impairment charge was recorded during the three or nine months ended March 31, 2021. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In January 2020, the FASB issued 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 2020-01 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 is currently evaluating the impacts of adoption of the new guidance to its consolidated financial statements. 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 is currently evaluating the impacts of adoption of the new guidance to its 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 is currently evaluating the impact of this standard on its consolidated financial statements and disclosures. 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. |
Reclassification | Reclassification Certain amounts in the current period financial statements have been reclassified in order to conform to the current year presentation. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Capital Structure | In accordance with ASC 505, Equity, the Company's capital structure is as follows: March 31, 2021 Authorized Issued Outstanding Common stock 4,000,000,000 2,860,944,203 2,810,905,578 $.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 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 June 30, 2020 Authorized Issued Outstanding Common stock 4,000,000,000 628,039,242 628,000,617 $.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 |
Contract Balances (Tables)
Contract Balances (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Assets and Contract Liabilities | Contract assets and contract liabilities are as follows: March 31, 2021 June 30, 2020 Contract assets $ - $ - Contract liabilities 217,134 463,961 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment are comprised of the following at: March 31, 2021 June 30, 2020 Vehicles $ 115,135 $ 115,135 Equipment 22,877 6,097 Furniture and fixtures 25,085 24,335 163,097 145,567 Accumulated depreciation (104,807) (93,518) Property and equipment, net $ 58,290 $ 52,049 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | The following tables shows goodwill, finite-lived intangible assets, accumulated amortization, and the impairment charges: March 31, 2021 Cost Accumulated Amortization Net Book Value Impairment Total Goodwill $ 834,220 $ - $ 834,220 $ - $ 834,220 Finite-lived assets: Customer list $ 922,053 $ (268,063) $ 653,990 $ - $ 653,990 Vendor relationships 484,816 (144,233) 340,583 - 340,583 Capitalized product development costs 402,255 (60,900) 341,355 - 341,355 $ 1,809,124 $ (473,196) $ 1,335,928 $ - $1,335,928 June 30, 2020 Cost Accumulated Amortization Net Book Value Impairment Total Goodwill $ 1,634,507 $ - $ 1,634,507 $ (800,287) $ 834,220 Finite-lived assets: Customer list $ 881,000 $ (132,147) $ 748,853 $ - $ 748,853 Vendor relationships 479,000 (71,847) 407,153 - 407,153 Noncompete agreements 1,600,000 (400,000) 1,200,000 (1,200,000) - Capitalized product development costs 281,845 (1,536) 280,309 - 280,309 $ 3,241,845 $ (605,530) $ 2,636,315 $(1,200,000) $1,436,315 |
Schedule of Amortization Expense | Estimated amortization expense related to intangible assets for the next five years is as follows: Period ending March 31, 2022 $ 387,118 2023 387,118 2024 347,598 2025 187,885 2026 26,209 $ 1,335,928 |
Notes Payable (Tables)
Notes Payable (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Notes Payable | Long Term Notes Payable March 31, 2021 June 30, 2020 Note payable with a bank bearing interest at 4% and maturing on June 26, 2020. The note was renewed by the lender with a revised maturity of June 26, 2021 and a lowered interest rate to 3%. The renewal provides for monthly interest payments and a balloon payment of outstanding principal and interest at maturity. The note is collateralized by a certificate of deposit owned by a related party. $274,539 $274,900 Long term PPP loan under the CARES Act bearing interest at 0.98% and maturing in April 2022. Monthly installments of principal and interest of $13,137 begin in October 2020. Payments on the loan are subject to application for SBA forgiveness submitted in 2021. 310,832 310,832 Long term loan under Section 7(b) of the Economic Injury Disaster Loan program bearing interest at 3.75% and maturing in May 2050. Monthly installments of principal and interest of $731 begin in May 2021. 150,000 150,000 Note payable to an investor bearing interest of 10% and maturing on January 13, 2022 with monthly installments of principal and interest of $45,294 beginning in June 2021. 385,000 - Financing lease liabilities for offices and warehouses with monthly installments of $12,449 (ranging from $1,083 to $3,524) over terms expiring through July 2023. 186,119 223,982 Financing leases with a related party for delivery vehicles with monthly installments totaling $813, including interest, over five year terms expiring through July 2020. - 1,245 Note payable with a finance company for delivery vehicle with monthly installments totaling $679 including interest at 8.99% over a six year term expiring in December 2025. 32,374 34,019 Total Notes Payable 1,338,864 994,978 Current Portion of Notes Payable 940,011 512,425 Long-term Portion of Notes Payable $ 398,853 $ 482,553 |
Schedule of Minimum Future Principal Payments | Future minimum principal payments on the long-term notes payable to unrelated parties are as follows: Period ending March 31, 2022 $ 940,011 2023 149,076 2024 26,305 2025 16,035 2026 14,662 Thereafter 192,775 $ 1,338,864 |
Schedule of Convertible Notes Payable | Convertible Notes March 31, 2021 June 30, 2020 On March 28, 2019, the Company signed a convertible promissory note with an investor. The $225,000 note was issued at a discount of $20,000 and bears interest at 10% per year. The Company issued 25,000 common shares to the investor. Three draws of $56,250, $112,500, and $56,250 were borrowed under this note. The note principal and interest were convertible into shares of common stock at the lower of (a) 70% of the lowest traded price of the common stock during the 20 trading days immediately preceding the notice of conversion or (b) $3 per share, beginning in September 2019. The note had prepayment penalties ranging from 110% to 125% of the principal and interest outstanding if repaid within 60 to 180 days from issuance. The note matured in three intervals in March 2020, June 2020, and November 2020. The note was repaid by conversion to stock. $ - $24,150 On November 18, 2019, the Company signed a convertible promissory note with an investor. The $110,000 note was issued at a discount of $10,000 and bore interest at 8% per year. The note principal and interest were convertible into shares of common stock at the lower of (a) 70% of the lowest traded price of common stock during the 15 trading days prior to the issue date or (b) 70% of the lowest traded price for the common stock during the 15 trading days prior to conversion of the note. The note matured in November 2020. The note had prepayment penalties between 115% and 125% of the principal and interest outstanding if repaid before 180 days from issuance. The note was repaid by conversion to stock. - 1,000 On December 11, 2019, the Company signed a convertible promissory note with an investor. The $220,430 note was issued at a discount of $15,430 and bore interest at 8% per year. The note principal and interest were convertible into shares of common stock at the lower of (a) $0.46 per share or (b) 75% of the lowest trading price of common stock during the 10 trading days prior to conversion beginning in June 2020. The note matured in December 2020. The note had prepayment penalties between 120% and 130% of the principal and interest outstanding if repaid before 180 days from issuance. The note was repaid by conversion to stock. - 121,200 On November 25, 2019, the Company signed a convertible promissory note with an investor. The $1,000,000 note was issued at a discount of $70,000 and bore interest at 8% per year. The note principal and interest up to $250,000 every 30-day calendar period were convertible into shares of common stock at the lower of (a) 75% of the lowest traded price of the common stock during the 10 trading days immediately preceding the notice of conversion or (b) $0.46 per share. The note matured in November 2020. The note had a redemption premium of 115% of the principal and interest outstanding if repaid before maturity. The note was repaid by conversion to stock. - 825,000 On January 9, 2020, the Company entered into a $225,000 convertible note. The $225,000 note was issued at a discount of $13,500 and bore interest at 8% per year. The note principal and interest were convertible into shares of common stock at the lower of (a) 75% of the lowest traded price of the common stock during the 10 trading days immediately preceding the notice of conversion or (b) the lowest traded price of the common stock during the 10 trading days prior to the issuance of this note. The note matured in October 2020. The note had prepayment penalties of 110% to 125% of the principal and interest outstanding if repaid before 180 days from issuance. The principal amount of the note was increased by $25,000 due to the value of the stock price at conversion. The note was repaid by conversion to stock. - 250,000 On March 25, 2020, the Company signed a convertible promissory note with an investor. The $338,625 note was issued at a discount of $23,625 and bore interest at 8% per year. The note principal and interest were convertible into shares of common stock at the lower of (a) $0.46 per share or (b) 75% of the lowest trading price of common stock during the 10 trading days prior to conversion. The note matured in March 2021. The note had prepayment penalties between 120% and 130% of the principal and interest outstanding if repaid before 180 days from issuance. The note was repaid by conversion to stock. - 338,625 On June 26, 2020, the Company signed a convertible promissory note with an investor. The $430,000 note was issued at a discount of $30,000 and bears interest at 8% per year. The note principal and interest were convertible into shares of common stock at the lower of (a) $0.47 per share or (b) 70% of the lowest trading price of common stock during the 10 trading days prior to conversion. The had note maturity of June 2021. The note had prepayment penalties between 120% and 130% of the principal and interest outstanding if repaid before 180 days from issuance. The note was repaid by conversion to stock. - 430,000 Total Convertible Notes Payable - 1,989,975 Less: Unamortized original issue discounts - 888,075 Current Portion of Convertible Notes Payable - 1,101,900 Long-term Portion of Convertible Notes Payable $ - $ - |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Values Determined by Level 3 Inputs | The following table presents information about the assets and liabilities that are measured at fair value on a recurring basis at March 31, 2021 and June 30, 2020 and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. At March 31, 2021 Total Level 1 Level 2 Level 3 Assets Customer list $653,990 - - $653,990 Vendor relationship 340,583 - - 340,583 Development costs 341,355 - - 341,355 $1,335,928 - - $1,335,928 Liabilities Original issue discount, convertible debt $3,376,000 - - $3,376,000 At June 30, 2020 Total Level 1 Level 2 Level 3 Assets Customer list $748,853 - - $748,853 Vendor relationship 407,153 - - 407,153 Development costs 280,309 - - 280,309 $1,436,315 - - $1,436,315 Liabilities Original issue discount, convertible debt $213,300 - - $213,300 Derivative liability warrants 33,312 - - 33,312 Total $246,612 - - $246,612 |
Schedule of Derivative Liability Valued Using Monte Carlo Pricing Model | The derivative liability was valued using the Monte Carlo pricing model with the following inputs: At March 31, 2021 Risk-free interest rate: 0.05% Expected dividend yield: 0.00% Expected stock price volatility: 305.00% Expected option life in years: 0.62 to 0.95 years At June 30, 2020 Risk-free interest rate: 0.09% Expected dividend yield: 0.00% Expected stock price volatility: 300.00% Expected option life in years: .089 to 1.69 years |
Schedule of Reconciliation of Changes in Fair Value of Convertible Debt | The following table sets forth a reconciliation of changes in the fair value of the Company's convertible debt components classified as Level 3 in the fair value hierarchy at March 31, 2021 and June 30, 2020: Balance at June 30, 2020 $ 246,612 Additional convertible securities at inception 2,000 Realized (55,612) Unrealized 3,183,000 Ending balance at March 31, 2021 $ 3,376,000 Balance at June 30, 2019 $ 1,025,944 Additional convertible securities at inception 2,027,000 Settlement of conversion features and warrants (152,374) Realized (240,903) Unrealized (2,413,055) Ending balance at June 30, 2020 $ 246,612 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Schedule of Notes Payable Obligations to Related Parties Assumed in Acquisition | Notes Payable March 31, 2021 June 30, 2020 Note payable to a stockholder in which the $200,000 principal plus $10,000 of interest was payable in December 2019. Borrowings under the note increased to $400,000 and the maturity was extended to November 2021. The note bears interest at 6% interest and is payable in cash or common stock, at the Company's option. If interest is paid in common stock, the conversion price will be the market price at the time of conversion. Principal on the note at maturity is convertible into 400,000 shares of Series D Preferred Stock. If principal is paid prior to maturity, the right of conversion is terminated. $400,000 $400,000 Fair value of unsecured notes payable to seller of Concepts and Solutions, a related party, bearing interest at 3% per year, payable in annual installments through November 30, 2021. Payments are subject to adjustment based on the achievement of minimum gross revenues and successful completion of certain pre-acquisition withholding tax issues of Concepts and Solutions. 1,030,079 1,030,079 Note payable to a stockholder in which the note principal plus 6% interest is payable in November 2021. Note was amended in March 2020 by increasing the balance to $1,225,000 and extending the maturity to March 2022. Interest is payable in cash or common stock, at the holder's option. If interest is paid in common stock, the conversion price will be the market price at the time of conversion. Principal on the note at maturity is convertible into 1,000,000 shares of Series D Preferred Stock. If principal is paid prior to maturity, the right of conversion is terminated. 1,225,000 1,225,000 Note payable to a stockholder in which the note principal plus 6% interest is payable in November 2021. Interest is payable in cash or common stock, at the Company's option. If interest is paid in common stock, the conversion price will be the market price at the time of conversion. Principal on the note at maturity is convertible into 200,000 shares of Series D Preferred Stock. If principal is paid prior to maturity, the right of conversion is terminated. 200,000 200,000 Note payable to a stockholder in which the note principal plus interest at 10% is payable the earlier of 60 days after invoicing a certain customer, or December 31, 2021, due to an extension granted by the lender. The note is collateralized by a security interest in a certain customer purchase order. 385,000 385,000 Note payable to a stockholder which is, upon the option of the stockholder, immediately convertible into restricted common shares. 500,000 - Note payable related to acquisition of Classroom Tech in which the note principal is payable in 2021 with no interest obligations, upon the shareholder's resolution of a pre-acquisition liability with a bank. 111,164 - Note payable related to the acquisition of Classroom Tech in which the note principal is payable in 2021 with no interest obligations. 44,526 - Other short-term payables due to stockholders and related parties 88,991 107,733 Total Related Party Notes Payable and Other Payables 3,984,760 3,347,812 Current Portion of Related Party Notes Payable and Other Payables 3,984,760 1,272,812 Long-term Portion of Related Party Notes Payable and Other Payables $ - $2,075,000 |
Lease Agreements (Tables)
Lease Agreements (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of Operating Lease Right-of-Use Assets and Operating Lease Liabilities | Right-of-use assets: Operating right-of-use assets $176,624 Operating lease liabilities: Current portion of long term payable 110,099 Financing leases payable, less current portion 76,020 Total financing lease liabilities $186,119 |
Schedule of Operating Lease Maturities | As of March 31, 2021, financing lease maturities are as follows: Period ending March 31, 2022 $110,099 2023 76,020 $186,119 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Tax Rate Differed from Federal Statutory Income Tax Rate | The Company's effective tax rate differed from the federal statutory income tax rate for the nine months ended March 31, 2021 and 2020 as follows: Federal statutory rate 21% State tax, net of federal tax effect 5.31% Valuation allowance -26% Effective tax rate 0% |
Schedule of Deferred Tax Assets and Liabilities | The Company's deferred tax assets and liabilities as of March 31, 2021 and June 30, 2020, are summarized as follows: March 31, 2021 June 30, 2020 Federal Deferred tax assets $ 9,719,000 $ 4,825,100 Less valuation allowance (9,719,000) (4,825,100) Deferred tax liabilities - - - - State Deferred tax assets 2,595,300 1,290,900 Less valuation allowance (2,595,300) (1,290,900) Deferred tax liabilities - - - - Net Deferred Tax Assets $ - $ - |
Schedule of Significant Components of Deferred Tax Assets | The significant components of deferred tax assets as of March 31, 2021 and June 30, 2020, are as follows: March 31, 2021 June 30, 2020 Net operating loss carryforwards $ 11,962,800 $ 5,767,000 Valuation allowance (12,314,300) (6,116,000) Goodwill 256,800 278,900 Property and equipment (13,500) (10,500) Intangible assets 63,400 35,800 Inventory allowance 17,800 17,800 Warranty accrual and other 27,000 27,000 Net Deferred Tax Assets $ - $ - |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Mar. 31, 2021 | |
Business Acquisition [Line Items] | |
Schedule of assets and liabilities as of the acquisition date through pushdown accounting | The following table summarizes the preliminary allocation of the fair value of the assets and liabilities as of the acquisition date through pushdown accounting. The preliminary allocation to certain assets and/or liabilities may be adjusted by material amounts as the Company finalizes fair value estimates. Assets Cash $ 201,161 Accounts receivable 1,165,953 Inventory 94,360 Property and equipment 20,904 Other assets 2,800 Goodwill and other intangibles 3,760,287 Total Assets 5,245,465 Liabilities Accounts payable 1,225,734 Accrued expenses 783,540 Short-term debt 96,941 Deferred revenue 518,900 Total Liabilities 2,625,115 Net Assets $ 2,620,350 Consideration Fair value of anti-dilution clause in employment agreement $ 235,350 Note payable to seller 900,000 Stock 1,485,000 $ 2,620,350 |
Classroom Technologies Solutions [Member] | |
Business Acquisition [Line Items] | |
Schedule of assets and liabilities as of the acquisition date through pushdown accounting | The following table summarizes the allocation of the fair value of the assets as of the acquisition date through pushdown accounting. Assets Cash $ 38,836 Accounts receivable 31,710 Inventory 209,431 Property and equipment 17,530 Other assets 1,150 Goodwill and other intangibles 46,869 Total Assets $ 345,526 Consideration Notes payable to seller and related party of seller $ 164,526 Bonus program 30,000 Stock 151,000 $ 345,526 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) | Oct. 15, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | May 31, 2020 | Apr. 30, 2020 |
Delayed payment of certain payroll tax payments | $ 19,517 | $ 19,517 | ||||
Interest rate | 3.75% | 4.25% | ||||
Impairment losses | $ 2,000,287 | $ 1,200,000 | ||||
Goodwill impairment losses | 800,287 | |||||
Impairment of intangible assets | $ 1,200,000 | |||||
Common shares reserved under terms of the convertible debt agreements and Stock Plan | 399,163,143 | |||||
Restricted common shares issued | 194,683,306 | |||||
Accounts receivable - unbilled | $ 758,481 | 670,031 | ||||
Accounts receivable | 600,000 | 0 | ||||
Inventory reserves | $ 67,635 | $ 67,635 | ||||
Asset Purchase Agreement with Classroom Technologies Solutions, Inc [Member] | ||||||
Issuance of shares | 10,000,000 | |||||
Assets acquired | $ 120,000 | |||||
Promissory note | $ 44,526 | |||||
Paycheck Protection Program Loan [Member] | ||||||
Unsecured loan | $ 311,000 | |||||
Interest rate | 0.98% | |||||
U.S. Small Business Administration [Member] | ||||||
Secured loan | $ 150,000 | |||||
Interest rate | 3.75% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Schedule of Capital Structure) (Details) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Common Stock, Shares Authorized | 4,000,000,000 | 4,000,000,000 |
Common Stock, Shares, Issued | 2,860,944,203 | 628,039,242 |
Common Stock, Shares, Outstanding | 2,810,905,578 | 628,000,617 |
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Preferred Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Preferred Class A [Member] | ||
Preferred Stock, Shares Authorized | 750,000 | 750,000 |
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Preferred Class B [Member] | ||
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Preferred Class C [Member] | ||
Preferred Stock, Shares Authorized | 9,000,000 | 9,000,000 |
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Preferred Class D [Member] | ||
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Preferred Class E [Member] | ||
Preferred Stock, Shares Authorized | 500,000 | 500,000 |
Preferred stock, shares, Issued | 500,000 | 500,000 |
Preferred stock, shares, Outstanding | $ 500,000 | $ 500,000 |
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Contract Balances (Narrative) (
Contract Balances (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Mar. 31, 2021 | Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Recognized revenue | $ 214,992 | $ 715,067 |
Contract Balances (Schedule of
Contract Balances (Schedule of Contract Assets and Contract Liabilities) (Details) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | ||
Contract liabilities | $ 217,134 | $ 463,961 |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation expense | $ 278,949 | $ 563,855 | ||
Property, Plant and Equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Depreciation expense | $ 4,641 | $ 10,011 | $ 11,289 | $ 27,855 |
Property and Equipment (Schedul
Property and Equipment (Schedule of Property and Equipment) (Details) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 163,097 | $ 145,567 |
Accumulated depreciation | (104,807) | (93,518) |
Property and equipment, net | 58,290 | 52,049 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 115,135 | 115,135 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 22,877 | 6,097 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 25,085 | $ 24,335 |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Product Development Costs [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Amortization expense | $ 26,436 | $ 0 | $ 59,364 | $ 0 |
Customer Lists and Vendor Relationships [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Amortization expense | $ 70,343 | $ 0 | $ 208,296 | $ 0 |
Intangible Assets (Schedule of
Intangible Assets (Schedule of Finite Lived Assets) (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | |
Finite-lived assets: | |||
Cost | $ 1,809,124 | $ 3,241,845 | |
Accumulated Amortization | (473,196) | (605,530) | |
Net Book Value | 1,335,928 | 1,436,315 | |
Impairment | $ (2,000,287) | (1,200,000) | |
Total | 1,335,928 | 1,436,315 | |
Customer List [Member] | |||
Finite-lived assets: | |||
Cost | 922,053 | 881,000 | |
Accumulated Amortization | (268,063) | (132,147) | |
Net Book Value | 653,990 | 748,853 | |
Impairment | |||
Total | 653,990 | 748,853 | |
Vendor relationships [Member] | |||
Finite-lived assets: | |||
Cost | 484,816 | 479,000 | |
Accumulated Amortization | (144,233) | (71,847) | |
Net Book Value | 340,583 | 407,153 | |
Impairment | |||
Total | 340,583 | 407,153 | |
Capitalized product development costs [Member] | |||
Finite-lived assets: | |||
Cost | 402,255 | 281,845 | |
Accumulated Amortization | (60,900) | (1,536) | |
Net Book Value | 341,355 | 280,309 | |
Impairment | |||
Total | 341,355 | 280,309 | |
Noncompete Agreement [Member] | |||
Finite-lived assets: | |||
Cost | 1,600,000 | ||
Accumulated Amortization | (400,000) | ||
Net Book Value | 1,200,000 | ||
Impairment | (1,200,000) | ||
Total | |||
Goodwill [Member] | |||
Finite-lived assets: | |||
Cost | 834,220 | 1,634,507 | |
Accumulated Amortization | |||
Net Book Value | 834,220 | 1,634,507 | |
Impairment | (800,287) | ||
Total | $ 834,220 | $ 834,220 |
Intangible Assets (Schedule o_2
Intangible Assets (Schedule of Amortization Expense) (Details) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Period ending March 31, | ||
2022 | $ 387,118 | |
2023 | 387,118 | |
2024 | 347,598 | |
2025 | 187,885 | |
2026 | 26,209 | |
Total | $ 1,335,928 | $ 1,436,315 |
Lines of Credit (Details)
Lines of Credit (Details) - USD ($) | 9 Months Ended | |
Mar. 31, 2021 | Jun. 30, 2020 | |
Line of Credit Facility [Abstract] | ||
Line of credit maximum borrowing capacity | $ 1,000,000 | $ 1,250,000 |
Interest rate basis | prime plus 0.5% | |
Interest rate | 3.75% | 4.25% |
Number of common stock owned by two stockholders | 50,000,000 | |
Debt maturity | Oct. 29, 2021 | |
Line of credit | $ 991,598 | $ 1,236,598 |
Minimum average bank balance | 50,000 | |
Available credit line | $ 1,000,000 |
Notes Payable (Narrative) (Deta
Notes Payable (Narrative) (Details) - USD ($) | Jan. 09, 2020 | Dec. 11, 2019 | Jun. 26, 2020 | Mar. 25, 2020 | Nov. 25, 2019 | Nov. 18, 2019 | Mar. 28, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 |
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 3.75% | 3.75% | 4.25% | |||||||||
Debt maturity | Oct. 29, 2021 | |||||||||||
Interest expense | $ 289,585 | $ 1,860,498 | $ 7,173,779 | $ 3,822,927 | ||||||||
Interest accretion | 603,852 | $ 766,603 | 1,412,705 | |||||||||
Notes Payable [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 4.00% | 4.00% | 3.00% | |||||||||
Debt maturity | Jun. 26, 2021 | |||||||||||
Notes Payable One [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Monthly installment | $ 13,137 | |||||||||||
Interest rate | 0.98% | 0.98% | ||||||||||
Debt maturity | Apr. 30, 2022 | |||||||||||
Notes Payable Two [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Monthly installment | $ 731 | |||||||||||
Interest rate | 3.75% | 3.75% | ||||||||||
Debt maturity | May 31, 2050 | |||||||||||
Notes Payable Six [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Monthly installment | $ 45,294 | |||||||||||
Interest rate | 10.00% | 10.00% | ||||||||||
Debt maturity | Jan. 13, 2022 | |||||||||||
Notes Payable Three [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Monthly installment | $ 12,449 | |||||||||||
Debt maturity | Jul. 31, 2023 | |||||||||||
Notes Payable Three [Member] | Minimum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Monthly installment | $ 1,083 | |||||||||||
Notes Payable Three [Member] | Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Monthly installment | 3,524 | |||||||||||
Notes Payable Four [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Monthly installment | $ 813 | |||||||||||
Debt term | 5 years | |||||||||||
Debt maturity | Jul. 31, 2020 | |||||||||||
Notes Payable Five [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Monthly installment | $ 679 | |||||||||||
Debt term | 6 years | |||||||||||
Interest rate | 8.99% | 8.99% | ||||||||||
Debt maturity | Dec. 31, 2025 | |||||||||||
Convertible Notes Payable [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Notes Payable | $ 225,000 | |||||||||||
Amounts withdraw | 56,250 | |||||||||||
Debt discount | $ 20,000 | |||||||||||
Interest rate | 10.00% | |||||||||||
Debt maturity | Nov. 30, 2020 | |||||||||||
Interest expense | $ 8,750 | 91,338 | $ 256,452 | 247,794 | ||||||||
Interest accretion | $ 0 | $ 603,852 | $ 766,603 | $ 1,412,705 | ||||||||
Percentage of lowest traded price | 70.00% | |||||||||||
Conversion price | $ 3 | |||||||||||
Convertible Notes Payable [Member] | Minimum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Prepayment penalties, percentage | 110.00% | |||||||||||
Convertible Notes Payable [Member] | Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Prepayment penalties, percentage | 125.00% | |||||||||||
Convertible Notes Payable [Member] | Investor [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Share Issued | 25,000 | |||||||||||
Convertible Notes Payable one [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amounts withdraw | $ 56,250 | |||||||||||
Debt maturity | Mar. 31, 2020 | |||||||||||
Convertible Notes Payable Two [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amounts withdraw | $ 112,500 | |||||||||||
Debt maturity | Jun. 30, 2020 | |||||||||||
Convertible Notes Payable One [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Notes Payable | $ 110,000 | |||||||||||
Debt discount | $ 10,000 | |||||||||||
Interest rate | 8.00% | |||||||||||
Debt maturity | Nov. 30, 2020 | |||||||||||
Percentage of lowest traded price | 70.00% | |||||||||||
Percentage of lowest traded price before issue date | 70.00% | |||||||||||
Convertible Notes Payable One [Member] | Minimum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Prepayment penalties, percentage | 115.00% | |||||||||||
Convertible Notes Payable One [Member] | Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Prepayment penalties, percentage | 125.00% | |||||||||||
Convertible Notes Payable Two [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Notes Payable | $ 220,430 | |||||||||||
Debt discount | $ 15,430 | |||||||||||
Interest rate | 8.00% | |||||||||||
Debt maturity | Dec. 31, 2020 | |||||||||||
Percentage of lowest traded price | 75.00% | |||||||||||
Conversion price | $ 0.46 | |||||||||||
Convertible Notes Payable Two [Member] | Minimum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Prepayment penalties, percentage | 120.00% | |||||||||||
Convertible Notes Payable Two [Member] | Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Prepayment penalties, percentage | 130.00% | |||||||||||
Convertible Notes Payable Three [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Notes Payable | $ 1,000,000 | |||||||||||
Debt discount | $ 70,000 | |||||||||||
Interest rate | 8.00% | |||||||||||
Debt maturity | Nov. 30, 2020 | |||||||||||
Percentage of lowest traded price | 75.00% | |||||||||||
Conversion price | $ 0.46 | |||||||||||
Percentage of redemption premium | 115.00% | |||||||||||
Convertible Notes Payable Three [Member] | Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Notes payable principal and interest | $ 250,000 | |||||||||||
Convertible Notes Payable Four [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Notes Payable | $ 225,000 | |||||||||||
Debt discount | $ 13,500 | |||||||||||
Interest rate | 8.00% | |||||||||||
Debt maturity | Oct. 31, 2020 | |||||||||||
Percentage of lowest traded price | 75.00% | |||||||||||
Amount of note increased | $ 25,000 | |||||||||||
Convertible Notes Payable Four [Member] | Minimum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Prepayment penalties, percentage | 110.00% | |||||||||||
Convertible Notes Payable Four [Member] | Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Prepayment penalties, percentage | 125.00% | |||||||||||
Convertible Notes Payable Five [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Notes Payable | $ 338,625 | |||||||||||
Debt discount | $ 23,625 | |||||||||||
Interest rate | 8.00% | |||||||||||
Debt maturity | Mar. 31, 2021 | |||||||||||
Percentage of lowest traded price | 75.00% | |||||||||||
Conversion price | $ 0.46 | |||||||||||
Convertible Notes Payable Five [Member] | Minimum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Prepayment penalties, percentage | 120.00% | |||||||||||
Convertible Notes Payable Five [Member] | Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Prepayment penalties, percentage | 130.00% | |||||||||||
Convertible Notes Payable Six [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Notes Payable | $ 430,000 | |||||||||||
Debt discount | $ 30,000 | |||||||||||
Interest rate | 8.00% | |||||||||||
Debt maturity | Jun. 30, 2021 | |||||||||||
Percentage of lowest traded price | 70.00% | |||||||||||
Conversion price | $ 0.47 | |||||||||||
Convertible Notes Payable Six [Member] | Minimum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Prepayment penalties, percentage | 120.00% | |||||||||||
Convertible Notes Payable Six [Member] | Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Prepayment penalties, percentage | 130.00% |
Notes Payable (Schedule of long
Notes Payable (Schedule of long-term Notes Payable) (Details) - USD ($) | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 |
Debt Instrument [Line Items] | |||
Total Notes Payable | $ 1,338,864 | $ 994,978 | |
Current Portion of Notes Payable | 940,011 | 512,425 | |
Long-term Portion of Notes Payable | 398,853 | 482,553 | |
Notes Payable [Member] | |||
Debt Instrument [Line Items] | |||
Total Notes Payable | 274,539 | 274,900 | |
Notes Payable One [Member] | |||
Debt Instrument [Line Items] | |||
Total Notes Payable | 310,832 | 310,832 | |
Notes Payable Two [Member] | |||
Debt Instrument [Line Items] | |||
Total Notes Payable | 150,000 | 150,000 | |
Notes Payable Six [Member] | |||
Debt Instrument [Line Items] | |||
Total Notes Payable | 385,000 | ||
Notes Payable Three [Member] | |||
Debt Instrument [Line Items] | |||
Total Notes Payable | 186,119 | 223,982 | |
Notes Payable Four [Member] | |||
Debt Instrument [Line Items] | |||
Total Notes Payable | 1,245 | ||
Notes Payable Five [Member] | |||
Debt Instrument [Line Items] | |||
Total Notes Payable | $ 32,374 | $ 34,019 |
Notes Payable (Schedule of Futu
Notes Payable (Schedule of Future minimum principal payments on the long term notes payable to Unrelated parties) (Details) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Debt Disclosure [Abstract] | ||
2022 | $ 940,011 | |
2023 | 149,076 | |
2024 | 26,305 | |
2025 | 16,035 | |
2026 | 14,662 | |
Thereafter | 192,775 | |
Total Notes Payable | $ 1,338,864 | $ 994,978 |
Notes Payable (Schedule of Conv
Notes Payable (Schedule of Convertible Notes Payable) (Details) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Debt Instrument [Line Items] | ||
Total Convertible Notes Payable | $ 1,989,975 | |
Less: Unamortized original issue discounts | 888,075 | |
Current Portion of Convertible Notes Payable | 1,101,900 | |
Long-term Portion of Convertible Notes Payable | ||
Convertible Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Total Convertible Notes Payable | 24,150 | |
Convertible Notes Payable one [Member] | ||
Debt Instrument [Line Items] | ||
Total Convertible Notes Payable | 1,000 | |
Convertible Notes Payable Two [Member] | ||
Debt Instrument [Line Items] | ||
Total Convertible Notes Payable | 121,200 | |
Convertible Notes Payable Three [Member] | ||
Debt Instrument [Line Items] | ||
Total Convertible Notes Payable | 825,000 | |
Convertible Notes Payable Four [Member] | ||
Debt Instrument [Line Items] | ||
Total Convertible Notes Payable | 250,000 | |
Convertible Notes Payable Five [Member] | ||
Debt Instrument [Line Items] | ||
Total Convertible Notes Payable | 338,625 | |
Convertible Notes Payable Six [Member] | ||
Debt Instrument [Line Items] | ||
Total Convertible Notes Payable | $ 430,000 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Fair Values Determined by Level 3 Inputs) (Details) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Liabilities: | ||
Goodwill | $ 834,220 | $ 834,220 |
Recurring [Member] | ||
Liabilities: | ||
Original issue discount, convertible debt | 3,376,000 | 213,300 |
Derivative liability, warrants | 33,312 | |
Total: | 246,612 | |
Recurring [Member] | Level 1 [Member] | ||
Liabilities: | ||
Original issue discount, convertible debt | ||
Derivative liability, warrants | ||
Total: | ||
Recurring [Member] | Level 2 [Member] | ||
Liabilities: | ||
Original issue discount, convertible debt | ||
Derivative liability, warrants | ||
Total: | ||
Recurring [Member] | Level 3 [Member] | ||
Liabilities: | ||
Original issue discount, convertible debt | 3,376,000 | 213,300 |
Derivative liability, warrants | 33,312 | |
Total: | 246,612 | |
Nonrecurring [Member] | ||
Assets: | ||
Assets measured at fair value | 1,335,928 | 1,436,315 |
Nonrecurring [Member] | Customer list [Member] | ||
Assets: | ||
Assets measured at fair value | 653,990 | 748,853 |
Nonrecurring [Member] | Vendor relationships [Member] | ||
Assets: | ||
Assets measured at fair value | 340,583 | 407,153 |
Nonrecurring [Member] | Development costs [Member] | ||
Assets: | ||
Assets measured at fair value | 341,355 | 280,309 |
Nonrecurring [Member] | Level 1 [Member] | ||
Assets: | ||
Assets measured at fair value | ||
Nonrecurring [Member] | Level 1 [Member] | Customer list [Member] | ||
Assets: | ||
Assets measured at fair value | ||
Nonrecurring [Member] | Level 1 [Member] | Vendor relationships [Member] | ||
Assets: | ||
Assets measured at fair value | ||
Nonrecurring [Member] | Level 1 [Member] | Development costs [Member] | ||
Assets: | ||
Assets measured at fair value | ||
Nonrecurring [Member] | Level 2 [Member] | ||
Assets: | ||
Assets measured at fair value | ||
Nonrecurring [Member] | Level 2 [Member] | Customer list [Member] | ||
Assets: | ||
Assets measured at fair value | ||
Nonrecurring [Member] | Level 2 [Member] | Vendor relationships [Member] | ||
Assets: | ||
Assets measured at fair value | ||
Nonrecurring [Member] | Level 2 [Member] | Development costs [Member] | ||
Assets: | ||
Assets measured at fair value | ||
Nonrecurring [Member] | Level 3 [Member] | ||
Assets: | ||
Assets measured at fair value | 1,335,928 | 1,436,315 |
Liabilities: | ||
Goodwill | 834,220 | 834,220 |
Nonrecurring [Member] | Level 3 [Member] | Customer list [Member] | ||
Assets: | ||
Assets measured at fair value | 653,990 | 748,853 |
Nonrecurring [Member] | Level 3 [Member] | Vendor relationships [Member] | ||
Assets: | ||
Assets measured at fair value | 340,583 | 407,153 |
Nonrecurring [Member] | Level 3 [Member] | Development costs [Member] | ||
Assets: | ||
Assets measured at fair value | $ 341,355 | $ 280,309 |
Fair Value Measurements (Sche_2
Fair Value Measurements (Schedule of Derivative Liability Valued Using Monte Carlo Pricing Model) (Details) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 2020 | |
Risk-free interest rate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Liability Valued Using Monte Carlo Pricing Model | 0.05% | 0.09% |
Expected dividend yield [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Liability Valued Using Monte Carlo Pricing Model | 0.00% | 0.00% |
Expected stock price volatility [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Liability Valued Using Monte Carlo Pricing Model | 305.00% | 300.00% |
Expected option life in years [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Derivative Liability Valued Using Monte Carlo Pricing Model | 0.62 to 0.95 years | .085 to 1.69 years |
Fair Value Measurements (Sche_3
Fair Value Measurements (Schedule of Reconciliation of Changes in Fair Value of Convertible Debt) (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 2020 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Balance at June 30, 2020 | $ 246,612 | |
Ending balance | 3,376,000 | $ 246,612 |
Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Balance at June 30, 2020 | 246,612 | 1,025,944 |
Additional convertible securities at inception | 2,000 | 2,027,000 |
Settlement of conversion features and warrants | (152,374) | |
Realized | (55,612) | (240,903) |
Unrealized | 3,183,000 | (2,413,055) |
Ending balance | $ 3,376,000 | $ 246,612 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | |
Related Party Transaction [Line Items] | |||||
Notes payable | $ 1,484,473 | $ 1,484,473 | |||
Interest rate | 3.75% | 3.75% | 4.25% | ||
Debt maturity | Oct. 29, 2021 | ||||
Collateral fee | $ 7,500 | ||||
Lease Expired | Dec. 31, 2021 | ||||
Operating Leases, Rent Expense | $ 89,500 | $ 89,500 | $ 98,500 | $ 98,500 | |
Monthly lease payment | 1,500 | ||||
Monthly lease payment increased | 9,664 | ||||
Short term commercial deposit | 274,900 | 274,900 | |||
Long-term Note Payable to Related Party - 1 [Member] | |||||
Related Party Transaction [Line Items] | |||||
Interest payable | 10,000 | 10,000 | |||
Notes payable | $ 200,000 | $ 200,000 | |||
Interest rate | 6.00% | 6.00% | |||
Debt maturity | Nov. 30, 2021 | ||||
Long-term Note Payable to Related Party - 1 [Member] | Series D Preferred Stock [Member] | |||||
Related Party Transaction [Line Items] | |||||
Conversion of shares | 400,000 | ||||
Long-term Note Payable to Related Party - 1 [Member] | Notes Payable Increased [Member] | |||||
Related Party Transaction [Line Items] | |||||
Notes payable | $ 400,000 | $ 400,000 | |||
Unsecured note payble [Member] | |||||
Related Party Transaction [Line Items] | |||||
Interest rate | 3.00% | 3.00% | |||
Debt maturity | Nov. 30, 2021 | ||||
Long-term Note Payable to Related Party - 3 [Member] | |||||
Related Party Transaction [Line Items] | |||||
Notes payable | $ 1,225,000 | $ 1,225,000 | |||
Interest rate | 6.00% | 6.00% | |||
Debt maturity | Mar. 31, 2022 | ||||
Long-term Note Payable to Related Party - 3 [Member] | Series D Preferred Stock [Member] | |||||
Related Party Transaction [Line Items] | |||||
Conversion of shares | 1,000,000 | ||||
Long-term Note Payable to Related Party - 4 [Member] | |||||
Related Party Transaction [Line Items] | |||||
Interest rate | 6.00% | 6.00% | |||
Debt maturity | Nov. 30, 2021 | ||||
Long-term Note Payable to Related Party - 4 [Member] | Series D Preferred Stock [Member] | |||||
Related Party Transaction [Line Items] | |||||
Conversion of shares | 200,000 | ||||
Long-term Note Payable to Related Party - 5 [Member] | |||||
Related Party Transaction [Line Items] | |||||
Interest rate | 10.00% | 10.00% |
Related Party Transactions (Sch
Related Party Transactions (Schedule of Notes Payable Obligations to Related Parties Assumed in Acquisition) (Details) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Related Party Transaction [Line Items] | ||
Other short term payables due to stockholders and related parties | $ 88,991 | $ 107,733 |
Total Related Party Notes Payable and Other Payables | 3,984,760 | 3,347,812 |
Current Portion of Related Party Notes Payable and Other Payables | 3,984,760 | 1,272,812 |
Long-term Portion of Related Party Notes Payable and Other Payables | 2,075,000 | |
Long-term Note Payable to Related Party - 1 [Member] | ||
Related Party Transaction [Line Items] | ||
Total Related Party Notes Payable and Other Payables | 400,000 | 400,000 |
Long-term Note Payable to Related Party - 2 [Member] | ||
Related Party Transaction [Line Items] | ||
Total Related Party Notes Payable and Other Payables | 1,030,079 | 1,030,079 |
Long-term Note Payable to Related Party - 3 [Member] | ||
Related Party Transaction [Line Items] | ||
Total Related Party Notes Payable and Other Payables | 1,225,000 | 1,225,000 |
Long-term Note Payable to Related Party - 4 [Member] | ||
Related Party Transaction [Line Items] | ||
Total Related Party Notes Payable and Other Payables | 200,000 | 200,000 |
Long-term Note Payable to Related Party - 5 [Member] | ||
Related Party Transaction [Line Items] | ||
Total Related Party Notes Payable and Other Payables | 385,000 | 385,000 |
Long-term Note Payable to Related Party - 6 [Member] | ||
Related Party Transaction [Line Items] | ||
Total Related Party Notes Payable and Other Payables | 500,000 | |
Long-term Note Payable to Related Party - 7 [Member] | ||
Related Party Transaction [Line Items] | ||
Total Related Party Notes Payable and Other Payables | 111,164 | |
Long-term Note Payable to Related Party - 8 [Member] | ||
Related Party Transaction [Line Items] | ||
Total Related Party Notes Payable and Other Payables | $ 44,526 |
Lease Agreements (Narrative) (D
Lease Agreements (Narrative) (Details) - USD ($) | 9 Months Ended | |
Mar. 31, 2021 | Jun. 30, 2020 | |
Interest rate | 3.75% | 4.25% |
Monthly lease payment | $ 1,500 | |
Weighted average remaining lease term | 1 year 2 months 12 days | |
Financial Institution [Member] | ||
Monthly lease payment | $ 12,449 | |
Lease term | 2 years | |
Lease expiration date | Jul. 31, 2023 | |
Financial Institution [Member] | Minimum [Member] | ||
Interest rate | 0.00% | |
Monthly lease payment | $ 1,083 | |
Financial Institution [Member] | Maximum [Member] | ||
Interest rate | 2.00% | |
Monthly lease payment | $ 3,524 |
Lease Agreements (Schedule of O
Lease Agreements (Schedule of Operating Lease Right-of-Use Assets and Operating Lease Liabilities) (Details) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Right-of-use assets: | ||
Operating right-of-use assets | $ 176,624 | $ 223,982 |
Operating lease liabilities: | ||
Current portion of long term payable | 110,099 | |
Financing leases payable, less current portion | 76,020 | |
Total financing lease liabilities | $ 186,119 |
Lease Agreements (Schedule of_2
Lease Agreements (Schedule of Operating Leases) (Details) | Mar. 31, 2021USD ($) |
Leases [Abstract] | |
2022 | $ 110,099 |
2022 | 76,020 |
Total operating lease payments | $ 186,119 |
Equity (Details)
Equity (Details) - USD ($) | Jan. 13, 2021 | Mar. 31, 2021 |
Class of Stock [Line Items] | ||
Common stock issued as collateral | 50,000,000 | |
Common stock issued in acquisition | $ 151,000 | |
Classroom Technologies Solutions [Member] | ||
Class of Stock [Line Items] | ||
Common stock issued in acquisition | $ 151,000 | |
Common stock issued in acquisition, shares | 10,000,000 | |
Consulting services [Member] | ||
Class of Stock [Line Items] | ||
Share Issued | 105,800,000 | |
Share issued value | $ 2,778,550 | |
Debt reduction [Member] | ||
Class of Stock [Line Items] | ||
Common shares issued for debt reduction | 1,382,812,744 | |
Common shares issued for debt reduction value | $ 13,031,235 | |
Warrant holders [Member] | ||
Class of Stock [Line Items] | ||
Share Issued | 249,792,217 | |
Shares Issued Stock Purchase Agreement [Member] | ||
Class of Stock [Line Items] | ||
Share Issued | 377,000,000 | |
Share issued value | $ 8,292,400 | |
Commitment shares under two year purchase agreement with an investor [Member] | ||
Class of Stock [Line Items] | ||
Share Issued | 52,500,000 | |
Share issued value | $ 1,050,000 | |
Commitment shares under One year note payable with an investor [Member] | ||
Class of Stock [Line Items] | ||
Share Issued | 5,000,000 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Tax Rate Differed from Federal Statutory Income Tax Rate) (Details) | 9 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory rate | 21.00% | 21.00% |
State tax, net of federal tax effect | 5.31% | 5.31% |
Valuation allowance | (26.00%) | (26.00%) |
Effective tax rate | 0.00% | 0.00% |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Less valuation allowance | $ (12,314,300) | $ (6,116,000) |
Federal [Member] | ||
Deferred tax assets | 9,719,000 | 4,825,100 |
Less valuation allowance | (9,719,000) | (4,825,100) |
Deferred tax liabilities | ||
Net Deferred Tax Assets | ||
State [Member] | ||
Deferred tax assets | 2,595,300 | 1,290,900 |
Less valuation allowance | (2,595,300) | (1,290,900) |
Deferred tax liabilities | ||
Net Deferred Tax Assets |
Income Taxes (Schedule of Signi
Income Taxes (Schedule of Significant Components of Deferred Tax Assets) (Details) - USD ($) | Mar. 31, 2021 | Jun. 30, 2020 |
Income Tax Disclosure [Abstract] | ||
Net operating loss carryforwards | $ 11,962,800 | $ 5,767,000 |
Valuation allowance | (12,314,300) | (6,116,000) |
Goodwill | 256,800 | 278,900 |
Property and equipment | (13,500) | (10,500) |
Intangible assets | 63,400 | 35,800 |
Inventory allowance | 17,800 | 17,800 |
Warranty accrual and other | 27,000 | 27,000 |
Net Deferred Tax Assets |
Commitments, Contingencies, a_2
Commitments, Contingencies, and Concentrations (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Jun. 30, 2020 | Aug. 14, 2021 | Sep. 04, 2020 | |
Concentration Risk [Line Items] | ||||
Accrued liability | $ 434,165 | $ 371,912 | ||
Accounts receivable [Member] | Two customer [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentrations risk | 73.00% | |||
Accounts receivable [Member] | Three customer [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentrations risk | 79.00% | |||
Revenue [Member] | Two customer [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentrations risk | 34.00% | |||
Revenue [Member] | Four customer [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentrations risk | 52.00% | |||
Concepts and Solutions [Member] | ||||
Concentration Risk [Line Items] | ||||
Accrued liability | $ 918,240 | $ 2,000,000 | $ 2,000,000 | $ 591,000 |
Material Agreements (Details)
Material Agreements (Details) | 1 Months Ended | 9 Months Ended | |||
Dec. 29, 2020USD ($)shares | Jul. 30, 2020USD ($) | May 31, 2020USD ($)shares | Mar. 31, 2021USD ($) | Jun. 30, 2020USD ($) | |
CEO [Member] | |||||
Other Commitments [Line Items] | |||||
Annual compensation | $ 500,000 | ||||
Non-compete agreement and severance benefits | 90,000 | ||||
CFO [Member] | |||||
Other Commitments [Line Items] | |||||
Annual compensation | 250,000 | ||||
Non-compete agreement and severance benefits | 72,000 | ||||
COO [Member] | |||||
Other Commitments [Line Items] | |||||
Annual compensation | 140,000 | ||||
Equity Purchase Agreement [Member] | |||||
Other Commitments [Line Items] | |||||
Value of shares purchased | $ 500,000 | $ 10,000,000 | |||
Shares issued | shares | 100,000,000 | 50,000,000 | |||
Accounts Receivable Factoring Agreement [Member] | |||||
Other Commitments [Line Items] | |||||
Percentage of factoring fees | 2.50% | ||||
Percentage of factoring fees increases | 3.50% | ||||
Credit line | $ 1,000,000 | ||||
Factored receivables | $ 300,000 | $ 600,000 | $ 0 | ||
Supply Agreement [Member] | |||||
Other Commitments [Line Items] | |||||
Number of units ordered under supply agreement | 4,000 | ||||
Supply agreement amount | $ 3,488,000 | ||||
Tooling costs | $ 25 | ||||
Number of units supplied under supply agreement | 1,051 |
Acquisition (Narrative) (Detail
Acquisition (Narrative) (Details) - USD ($) | Oct. 15, 2020 | Sep. 04, 2019 | Mar. 31, 2020 | Mar. 31, 2021 | Jun. 30, 2020 |
Business Acquisition [Line Items] | |||||
Purchase price for acquisition in value | $ 1,720,351 | ||||
Notes payable | $ 1,484,473 | ||||
Balance of note payables | $ 1,030,079 | $ 1,030,079 | |||
Concepts and Solutions [Member] | |||||
Business Acquisition [Line Items] | |||||
Percentage of stock acquired under stock purchase agreement | 100.00% | ||||
Purchase price for acquisition in shares | 1,350,000 | ||||
Purchase price for acquisition in value | $ 1,485,000 | ||||
Purchase price for acquisition in notes payable to seller | 3,000,000 | ||||
Assets acquired | $ 5,245,465 | ||||
Asset Purchase Agreement with Classroom Technologies Solutions, Inc [Member] | |||||
Business Acquisition [Line Items] | |||||
Purchase price for acquisition in shares | 10,000,000 | ||||
Assets acquired | $ 120,000 | ||||
Promissory note | $ 44,526 |
Acquisition of Concepts and Sol
Acquisition of Concepts and Solutions (Schedule of preliminary allocation of fair value of assets and liabilities) (Details) - USD ($) | Oct. 15, 2020 | Sep. 04, 2019 |
Concepts and Solutions [Member] | ||
Assets | ||
Cash | $ 201,161 | |
Accounts receivable | 1,165,953 | |
Inventory | 94,360 | |
Property and equipment | 20,904 | |
Other assets | 2,800 | |
Goodwill and other intangibles | 3,760,287 | |
Total Assets | 5,245,465 | |
Liabilities | ||
Accounts payable | 1,225,734 | |
Accrued expenses | 783,540 | |
Short-term debt | 96,941 | |
Deferred revenue | 518,900 | |
Total Liabilities | 2,625,115 | |
Net Assets | 2,620,350 | |
Consideration | ||
Fair value of anti-dilution clause in employment agreement | 235,350 | |
Note payable to seller | 900,000 | |
Stock | 1,485,000 | |
Total consideration | $ 2,620,350 | |
Classroom Technologies Solutions [Member] | ||
Assets | ||
Cash | $ 38,836 | |
Accounts receivable | 31,710 | |
Inventory | 209,431 | |
Property and equipment | 17,530 | |
Other assets | 1,150 | |
Goodwill and other intangibles | 46,869 | |
Total Assets | 345,526 | |
Consideration | ||
Note payable to seller | 164,526 | |
Bonus program | 30,000 | |
Stock | 151,000 | |
Total consideration | $ 345,526 |
Stock Plan (Details)
Stock Plan (Details) - Stock Plan [Member] - shares | 9 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Jun. 30, 2020 | |
Shares awarded under stock plan | 98,857,857 | 965,000 |
Shares reserved | 99,250,000 |
Going Concern (Details)
Going Concern (Details) - USD ($) | 9 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Jun. 30, 2020 | |
Disclosure of Going Concern [Abstract] | |||
Accumulated deficit | $ 47,289,940 | $ 23,496,792 | |
Cash used in operations | 6,774,413 | $ 7,438,550 | |
Working capital deficit | $ 7,791,000 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - USD ($) | Apr. 07, 2021 | Apr. 05, 2021 | Apr. 29, 2021 | Apr. 19, 2021 |
Subsequent Event [Line Items] | ||||
Amount paid to settle legal settlement agreement | $ 950,000 | |||
To Investor in exchange for proceeds under Purchase Agreement dated May 2020 [Member] | ||||
Subsequent Event [Line Items] | ||||
Shares issued | 50,000,000 | 30,000,000 | ||
Shares issued, value | $ 500,000 | $ 472,000 | ||
To Investor to satisfy note payable to related party investor [Member] | ||||
Subsequent Event [Line Items] | ||||
Shares issued | 100,000,000 | |||
Shares issued, value | $ 500,000 |