Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Mar. 31, 2022 | May 12, 2022 | |
Document Information Line Items | ||
Entity Registrant Name | GALAXY NEXT GENERATION, INC. | |
Trading Symbol | N/A | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --06-30 | |
Entity Common Stock, Shares Outstanding | 17,469,128 | |
Amendment Flag | false | |
Entity Central Index Key | 0001127993 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 000-56006 | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 61-1363026 | |
Entity Address, Address Line One | 285 N Big A Road | |
Entity Address, City or Town | Toccoa | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30577 | |
City Area Code | (706) | |
Local Phone Number | 391-5030 | |
Title of 12(b) Security | N/A | |
Security Exchange Name | NONE | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Current Assets | ||
Cash | $ 479,623 | $ 541,591 |
Accounts receivable, net | 659,101 | 866,091 |
Inventories, net | 946,987 | 3,267,667 |
Other current assets | 3,950 | 3,950 |
Total Current Assets | 2,089,661 | 4,679,299 |
Property and Equipment, net (Note 2) | 359,463 | 86,812 |
Intangibles, net (Notes 1 and 12) | 1,475,989 | 1,516,815 |
Goodwill (Note 1) | 834,220 | 834,220 |
Operating right of use asset (Note 7) | 158,829 | 208,051 |
Total Assets | 4,918,162 | 7,325,197 |
Current Liabilities | ||
Line of credit (Note 3) | 991,598 | |
Derivative liability, convertible debt features (Note 5) | 1,842,000 | |
Current portion long term notes payable (Note 4) | 2,011,550 | 552,055 |
Accounts payable | 627,212 | 830,433 |
Accrued expenses | 823,788 | 213,772 |
Deferred revenue | 453,862 | |
Short term portion of related party notes and payables (Note 6) | 1,238,443 | 3,471,755 |
Total Current Liabilities | 4,700,993 | 8,355,475 |
Noncurrent Liabilities | ||
Related party notes payable, less current portion (Note 6) | 279,124 | |
Notes payable, less current portion (Note 4) | 316,295 | 405,007 |
Total Liabilities | 5,296,412 | 8,760,482 |
Stockholders' Equity (Deficit) | ||
Common stock | 320,964 | 280,744 |
Preferred stock- Series E, non-redeemable | 50 | |
Preferred stock - Series F, non-redeemable | 11 | |
Additional paid-in-capital | 51,110,420 | 46,215,049 |
Accumulated deficit | (51,809,645) | (47,931,128) |
Total Stockholders' Equity (Deficit) | (378,250) | (1,435,285) |
Total Liabilities and Stockholders' Equity (Deficit) | $ 4,918,162 | $ 7,325,197 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||||
Revenues | $ 1,268,447 | $ 777,457 | $ 3,857,273 | $ 2,754,463 |
Cost of Sales | 1,015,843 | 356,731 | 2,882,705 | 1,660,971 |
Gross Profit | 252,604 | 420,726 | 974,568 | 1,093,492 |
General and Administrative Expenses | ||||
Stock compensation and stock issued for services | 78,102 | 2,350 | 110,852 | 2,778,550 |
Impairment expense (Note 1) | 46,869 | |||
General and administrative | 1,126,705 | 1,697,410 | 3,627,953 | 4,347,555 |
Total General and Administrative Expenses | 1,204,807 | 1,699,760 | 3,785,674 | 7,126,105 |
Loss from Operations | (952,203) | (1,279,034) | (2,811,106) | (6,032,613) |
Other Income (Expense) | ||||
Other income, net | 2,000 | 141,017 | 7,878 | 141,017 |
Expenses related to convertible notes payable: | ||||
Change in fair value of derivative liability | 343,000 | 1,842,000 | (3,153,583) | |
Interest accretion | (25,370) | (49,660) | (766,603) | |
Interest expense related to Equity Purchase Agreement (Note 11) | (1,805,687) | (2,143,500) | (6,807,587) | |
Interest expense | (101,766) | (289,585) | (724,129) | (7,173,779) |
Total Other Income (Expense) | (125,136) | (1,611,255) | (1,067,411) | (17,760,535) |
Net Loss before Income Taxes | (1,077,399) | (2,890,289) | (3,878,517) | (23,793,148) |
Income taxes (Note 9) | ||||
Net Loss | $ (1,077,339) | $ (2,890,289) | $ (3,878,517) | $ (23,793,148) |
Net Basic and Fully Diluted Loss Per Share (in Dollars per share) | $ (0.0636) | $ (0.2048) | $ (0.2325) | $ (2.1424) |
Weighted average common shares outstanding | ||||
Basic (in Shares) | 16,939,276 | 14,144,032 | 16,679,847 | 11,106,013 |
Fully diluted (in Shares) | 16,945,205 | 16,939,839 | 16,683,828 | 17,165,665 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Stockholders' Equity (Deficit) (Unaudited) - USD ($) | Common Stock [Member] | Preferred Stock Series E [Member] | Series F Preferred Shares [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total | ||
Beginning Balance at Jun. 30, 2020 | $ 59,539 | [1] | $ 50 | $ 15,697,140 | $ (23,496,792) | $ (7,740,063) | ||
Beginning Balance (in Shares) at Jun. 30, 2020 | 3,140,196 | [1] | 500,000 | |||||
Common Stock issued for services | $ 10,580 | [1] | 2,767,970 | 2,778,550 | ||||
Common Stock issued for services (in Shares) | [1] | 529,000 | ||||||
Common stock issued for debt reduction | $ 138,281 | [1] | 12,892,954 | 13,031,235 | ||||
Common stock issued for debt reduction (in Shares) | [1] | 6,914,064 | ||||||
Issuance of common stock to warrant holders (in Shares) | [1] | 1,248,961 | ||||||
Common stock issued under Equity Purchase Agreement | $ 37,700 | [1] | 8,254,700 | 8,292,400 | ||||
Common stock issued under Equity Purchase Agreement (in Shares) | [1] | 1,885,000 | ||||||
Common stock issued as collateral (in Shares) | [1] | 250,000 | ||||||
Common stock issued in acquisition | $ 1,000 | [1] | 150,000 | 151,000 | ||||
Common stock issued in acquisition (in Shares) | [1] | 50,000 | ||||||
Commitment shares issued | $ 5,750 | [1] | 1,171,250 | 1,177,000 | ||||
Commitment shares issued (in Shares) | [1] | 287,500 | ||||||
Consolidated net loss | [1] | (23,793,148) | (23,793,148) | |||||
Ending Balance at Mar. 31, 2021 | $ 252,850 | [1] | $ 50 | 40,934,014 | (47,289,940) | (6,103,026) | ||
Ending Balance (in Shares) at Mar. 31, 2021 | 14,304,721 | [1] | 500,000 | |||||
Beginning Balance at Jun. 30, 2021 | $ 280,744 | [1] | $ 50 | 46,215,049 | (47,931,128) | $ (1,435,285) | ||
Beginning Balance (in Shares) at Jun. 30, 2021 | 15,699,414 | [1] | 500,000 | 15,449,221 | ||||
Common Stock issued for services | $ 1,470 | [1] | 109,382 | $ 110,852 | ||||
Common Stock issued for services (in Shares) | [1] | 73,517 | ||||||
Common stock issued under Equity Purchase Agreement | $ 32,500 | [1] | 2,611,000 | 2,643,500 | ||||
Common stock issued under Equity Purchase Agreement (in Shares) | [1] | 1,625,000 | ||||||
Preferred Series F issued in exchange for debt | [1] | $ 11 | 1,824,989 | 1,825,000 | ||||
Preferred Series F issued in exchange for debt (in Shares) | [1] | 11,414 | ||||||
Retirement of Preferred Series E | [1] | $ (50) | (50) | |||||
Retirement of Preferred Series E (in Shares) | [1] | (500,000) | ||||||
Commitment shares issued | $ 6,250 | [1] | 350,000 | 356,250 | ||||
Commitment shares issued (in Shares) | [1] | 312,500 | ||||||
Cancellation of fractional shares of common stock resulting from reverse split (Note 1) (in Shares) | [1] | (241,303) | ||||||
Consolidated net loss | [1] | (3,878,517) | (3,878,517) | |||||
Ending Balance at Mar. 31, 2022 | $ 320,964 | [1] | $ 11 | $ 51,110,420 | $ (51,809,645) | $ (378,250) | ||
Ending Balance (in Shares) at Mar. 31, 2022 | 17,469,128 | [1] | 11,414 | 17,430,503 | ||||
[1] | All share amounts, including those in the accompanying notes, have been adjusted to reflect a 1:200 reverse split effective March 7, 2022. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash Flows from Operating Activities | ||
Net loss | $ (3,878,517) | $ (23,793,148) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 387,421 | 278,949 |
Amortization of convertible debt discounts | 49,660 | 265,953 |
Impairment expense | 46,869 | |
Change in fair value of derivative liability | (1,842,000) | 3,827,600 |
Stock issued for services | (1,350,217) | 2,789,130 |
Stock issued under Equity Purchase Agreement | 2,676,000 | 13,826,684 |
Changes in assets and liabilities: | ||
Accounts receivable | 206,990 | (472,892) |
Inventories | 2,320,680 | (1,260,363) |
Intangibles | (48,894) | |
Right of use assets | 49,222 | |
Accounts payable | (203,221) | (1,979,801) |
Accrued expenses | 610,016 | 62,253 |
Deferred revenue | (453,862) | (318,778) |
Net cash used in operating activities | (1,429,853) | (6,774,413) |
Cash Flows from Investing Activities | ||
Acquisition of business, net of cash | 38,836 | |
Capitalization of development costs | (363,319) | (120,404) |
Purchases of property and equipment | (194,326) | |
Net cash used in investing activities | (557,645) | (81,568) |
Cash Flows from Financing Activities | ||
Proceeds from notes payable | 500,000 | 322,500 |
Principal payments on notes payable | (217,546) | (1,878) |
Payments on advances from stockholder, net | (74,026) | (140,596) |
Proceeds from convertible notes payable | 1,075,000 | 1,956,000 |
Payments on convertible notes payable | (110,000) | |
Proceeds from convertible notes payable related party | 543,613 | |
Payments on line of credit, net | (991,598) | (245,000) |
Proceeds from sale of common stock under Equity Purchase Agreement | 1,633,700 | 4,851,333 |
Net cash provided by financing activities | 1,925,530 | 7,185,972 |
Net Increase (Decrease) in Cash and Cash Equivalents | (61,968) | 329,991 |
Cash, Beginning of Period | 541,591 | 412,391 |
Cash, End of Period | 479,623 | 742,382 |
Supplemental and Non Cash Disclosures | ||
Noncash additions related to convertible debt | 78,750 | 228,020 |
Cash paid for interest | 54,756 | 163,314 |
Interest on shares issued under Equity Purchase Agreement | 2,143,500 | 6,807,587 |
Related party note payable issued for acquisition of business | 194,526 | |
Acquisition of goodwill and intangibles | 46,869 | |
Stock issued for services | 110,852 | 2,778,550 |
Property leased with financing lease | 97,253 | 25,317 |
Change in fair value of derivatives | 1,842,000 | 3,895,991 |
Common stock issued in exchange for convertible debt reduction | 4,117,650 | |
Preferred stock issued in exchange for convertible debt reduction | $ 1,825,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2022 | |
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 as well as numerous other national and international branded peripheral and communication devices. New technologies like Galaxy's own touchscreen panels are sold along with renowned brands such as Google Chromebooks, Microsoft Surface Tablets, Lenovo and Acer computers, Verizon WiFi and more. Galaxy's distribution channel consists of approximately 37 resellers across the U.S. who primarily sell its products within the commercial and educational market. Galaxy does not control where the resellers focus their resell efforts; however, the K-12 education market is the largest customer base for Galaxy products comprising nearly 90% of Galaxy's sales. In addition, Galaxy also possesses its own reseller channel where it sells directly to the K-12 market, primarily throughout the Southeast region of the United States. Ehlert Solutions Group, Inc. ("Solutions") and Interlock Concepts, Inc. ("Concepts") are Arizona-based audio design and manufacturing companies creating innovative products that provide fundamental tools for building notification systems primarily to K-12 education market customers located primarily in the north and northwest United States. Solutions and Concepts' products and services allow institutions access to intercom, scheduling, and notification systems with improved ease of use. The products provide an open architecture solution to customers which allows the products to be used in both existing and new environments. Intercom, public announcement (PA), bell and control solutions are easily added and integrated within the open architecture design and software model. These products combine elements over a common internet protocol (IP) network, which minimizes infrastructure requirements and reduces costs by combining systems. On October 15, 2020, Galaxy acquired the assets of Classroom Technologies Solutions, Inc. ("Classroom Tech") for consideration of (a) paying off a secured Classroom Tech loan, not to exceed the greater of 50% of the value of the Classroom Tech assets acquired or $120,000; (b) the issuance of a promissory note in the amount of $44,526 to a Classroom Tech designee; and (c) the issuance of 10 million shares of common stock to the seller of Classroom Tech. Classroom Tech provides cutting-edge presentation products to schools, training facilities, churches, corporations and retail establishments. Their high-quality solutions are customized to meet a variety of needs and budgets in order to provide the best in education and presentation technology. Classroom Tech direct-sources and imports many devices and components which allows the Company to be innovative, nimble, and capable of delivering a broad range of cost-effective solutions. Classroom Tech also offers in-house service and repair facilities and carries many top brands. COVID-19 Update The Covid-19 pandemic that began in early 2020 caused shelter-in-place policies, unexpected factory closures, supply chain disruptions, and market volatilities across the globe. As a result of the economic disruptions and unprecedented market volatilities and uncertainties driven by the Covid-19 outbreak, the Company experienced some supply chain disruptions. However, the Company has not experienced any significant payment delays or defaults by our customers as a result of the COVID-19 pandemic. The full impact of the Covid-19 outbreak continues to evolve as of the date of this report. The depth and duration of the pandemic remains unknown. Despite the availability of vaccines, recent surges in the infection rate and the detection of new variants of the virus have reinforced the general consensus that the containment of Covid-19 remains a challenge. Management is actively monitoring the global situation and its effect on its financial condition, liquidity, operations, suppliers, industry, and workforce. Basis of Presentation and Interim Financial Information The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and applicable rules and regulations of the Securities and Exchange Commission (the "SEC") pertaining to interim financial information. Accordingly, these interim financial statements do not include all information or footnote disclosures required by GAAP for complete financial statements and, therefore, should be read in conjunction with the Consolidated Financial Statements and notes thereto in the Company’s June 30, 2021 Annual Report on Form 10-K and other current filings with the SEC. In the opinion of management, all adjustments, consisting of those of a normal recurring nature, necessary to present fairly the results of the periods presented have been included. The results of operations for the interim periods presented may not necessarily be indicative of the results to be expected for the full year. Principles of Consolidation The financial statements include the consolidated assets and liabilities of the combined company (collectively Galaxy Next Generation, Inc., Classroom Technology Solutions Inc., Interlock Concepts, Inc., and Ehlert Solutions Group, Inc. referred to collectively as the "Company"). See Note 12. All intercompany transactions and accounts have been eliminated in the consolidation. The Company’s common stock is traded on the over-the-counter public company traded under the stock symbol listing GAXY (formerly FLCR). Reverse Stock Split Unless otherwise noted, all share and per share data referenced in the consolidated financial statements and the notes thereto have been retroactively adjusted to reflect the one-for-two hundred reverse stock split effective March 4, 2022 of our authorized and outstanding shares of common stock. As a result of the reverse stock split, certain amounts in the consolidated financial statements and the notes thereto may be slightly different than previously reported due to rounding of fractional shares, and certain amounts within the consolidated balance sheets were reclassified between common stock and additional paid-in capital. Capital Structure The Company's capital structure is as follows: March 31, 2022 Authorized Issued Outstanding Common stock 20,000,000 17,469,128 17,430,503 $.0001 par value, one vote per share Preferred stock 200,000,000 - - $.0001 par value, one vote per share Preferred stock - Class A 750,000 - - $.0001 par value; no voting rights Preferred stock - Class B 1,000,000 - - Voting rights of 10 votes for Preferred B share; 2% preferred dividend payable annually Preferred stock - Class C 9,000,000 - - $.0001 par value; 500 votes per share, convertible to common stock Preferred stock - Class F 15,000 11,414 11,414 $.001 par value; no voting rights, convertible to common stock at a fixed price of $0.37 per share; stated value is $1,000 per share June 30, 2021 Authorized Issued Outstanding Common stock 20,000,000 15,699,414 15,449,221 $.0001 par value, one vote per share Preferred stock 200,000,000 - - $.0001 par value, one vote per share Preferred stock - Class A 750,000 - - $.0001 par value; no voting rights Preferred stock - Class B 1,000,000 - - Voting rights of 10 votes for 1 Preferred B share; 2% preferred dividend payable annually Preferred stock - Class C 9,000,000 - - $.0001 par value; 500 votes per share, convertible to common stock Preferred stock - Class D 1,000,000 - - $.0001 par value; no voting rights, convertible to common stock, mandatory conversion to common stock 18 months after issue Preferred stock - Class E 500,000 500,000 500,000 $.0001 par value; no voting rights, convertible to common stock There is no publicly traded market for the preferred shares. The Preferred Series D and E were retired in December 2021. There are 5,295,849 common shares reserved at March 31, 2022 under terms of convertible debt agreements, the Stock Plan and the Amended and Restated Equity Purchase Agreement, dated December 29, 2020, with Tysadco Partners LLC ( the “Equity Purchase Agreement”) (see Notes 6, 11 and 13). There are 1,084,861 issued common shares that are restricted as of March 31, 2022. The shares may become free-trading upon satisfaction of certain terms and regulatory conditions. Supplier Agreement Contract assets and contract liabilities are as follows: March 31, 2022 June 30, 2021 Contract assets $ 436,930 $ 43,360 Contract liabilities - 228,514 For the three months ended March 31, 2022 and 2021, the Company recognized $463,301 and $214,992 of revenues related to supplier agreements. For the nine months ended March 31, 2022 and 2021, the Company recognized $1,116,219 and $715,067 of revenues related to supplier agreements. Accounts Receivable Management deemed no allowance for doubtful accounts was necessary at March 31, 2022 and June 30, 2021. At March 31, 2022 and June 30, 2021, $0 and $190,779 of total accounts receivable were considered unbilled and recorded as deferred revenue. Inventories Management estimates $67,635 of inventory reserves at March 31, 2022 and June 30, 2021, respectively. Goodwill, Intangible Assets and Product Development Costs Goodwill, intangible assets, and product development costs are comprised of the following at March 31, 2022: Cost Accumulated Amortization Net Book Value Impairment Total Goodwill $ 834,220 - $834,220 - $ 834,220 Finite-lived assets: Customer list $ 922,053 $ (420,401) $ 501,652 $ (41,053) $460,599 Vendor relationships 484,816 (239,500) 245,316 (5,816) 239,500 Capitalized product development cost 1,157,596 (381,706) 775,890 - 775,890 $ 2,564,465 $ (1,041,607) $ 1,522,858 $ (46,869) $1,475,989 Goodwill, intangible assets, and product development costs are comprised of the following at June 30, 2021: Cost Accumulated Amortization Total Goodwill $ 834,220 $ - $ 834,220 Finite-lived assets: Customer list $ 922,053 $ (314,166) $ 607,887 Vendor relationships 484,816 (168,474) 316,342 Product development costs 790,118 (197,532) 592,586 $ 2,196,987 $ (680,172) $1,516,815 Intangible assets such as customer lists and vendor relationships are stated at the lower of cost or fair value. They are amortized on a straight-line basis over periods ranging from three to six years, representing the period over which the Company expects to receive future economic benefits from these assets. Amortization of these intangible assets amounted to $68,000 and $70,343 for the three months ended March 31, 2022 and 2021. Amortization of these intangible assets amounted to $186,243 and $208,296 for the nine months ended March 31, 2022 and 2021. Costs incurred in designing and developing classroom technology products are expensed as research and development until technological feasibility has been established. Technological feasibility is established upon completion of a detail product design, or in its absence, completion of a working model. Upon the achievement of technological feasibility, development costs are capitalized and subsequently reported at the lower of unamortized cost or net realizable value. Management's judgment is required in determining whether a product provides new or additional functionality, the point at which various products enter the stages at which costs may be capitalized, assessing the ongoing value and impairment of the capitalized costs and determining the estimated useful lives over which the costs are amortized. Annual amortization expense is calculated based on the straight-line method over the product's estimated economic lives, which are typically three to six years. Amortization of product development costs incurred begins when the related products are available for general release to customers. Amortization of product development costs of $69,042 and $26,436 for the three months ended March 31, 2022 and 2021, and $184,176 and $59,364 for the nine months ended March 31, 2022 and 2021, is included in cost of revenues in the Company's unaudited condensed consolidated statements of operations. Estimated amortization expense related to finite-lived intangible assets for the next five years is: $603,836 for fiscal year 2023, $470,584 for fiscal year 2024, $272,139 for fiscal year 2025, $60,292 for fiscal year 2026, and $44,389 for fiscal year 2027 and $24,748 thereafter. Recent Accounting Pronouncements 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. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 2 - Property and Equipment Property and equipment are comprised of the following at: March 31, 2022 June 30, 2021 Vehicles $ 212,658 $ 115,135 Building 201,823 - Equipment 16,192 25,115 Leasehold improvements 31,000 31,000 Furniture and fixtures 28,321 25,085 489,994 196,335 Accumulated depreciation (130,531) (109,523) Property and equipment, net $ 359,463 $ 86,812 |
Lines of Credit
Lines of Credit | 9 Months Ended |
Mar. 31, 2022 | |
Line of Credit Facility [Abstract] | |
Lines of Credit | Note 3 - Lines of Credit The Company had $1,000,000 available under a line of credit bearing interest at prime plus 0.5% (3.75% at June 30, 2021) which expired October 29, 2021. The bank provided a 30-day grace period to repay the line to November 29, 2021. The line of credit was collateralized by certain real estate owned by stockholders and a family member of a stockholder, 7,026,894 shares of the Company's common stock owned by two stockholders, personal guarantees of two stockholders, and a key man life insurance policy. In addition, a 20% curtailment of the outstanding balance may occur any time prior to maturity. The outstanding balance was $0 and $991,598 at March 31, 2022 and June 30, 2021, respectively. The line of credit was completely paid off in November of 2021. The Company has up to $1,000,000 available credit line under an accounts receivable factoring agreement through July 30, 2022. Total available credit under the factoring agreement was $989,680 and $1,000,000 as of March 31, 2022 and June 30, 2021, respectively. See Note 11. |
Notes Payable
Notes Payable | 9 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Notes Payable | Note 4 - Notes Payable Long Term Notes Payable March 31, 2022 June 30, 2021 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 an interest rate of 3%. In July 2021, the note was renewed by the lender with a revised maturity date of July 7, 2026. 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. $ 215,526 $ 237,039 Note payable to an investor bearing interest at 10% and maturing on January 13, 2022 with monthly installments of principal and interest of $45,294 beginning in June 2021. This note was paid in full on May 2, 2022. 55,551 348,456 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 upon notification by the SBA regarding note servicing. In March 2022, SBA deferred maturity for 30 months from the date of the note. Revised maturity date is November 2052. 150,000 150,000 Financing lease liabilities for offices and warehouses with monthly installments of $22,723 (ranging from $245 to $9,664) over terms expiring through December 2024. 158,829 208,051 Note payable with a finance company for delivery vehicle with monthly installments totaling $679 including interest at 8.99% over a 6 year term expiring in December 2025. 26,921 31,016 Note payable with a bank for delivery vehicle with monthly installments totaling $844 including interest at 6% over a 4 year term expiring in August 2025. 31,281 - Note payable with a finance company for delivery vehicle with monthly installments totaling $948 including interest at 5.9% over a 6 year term expiring in January 2027. 53,827 - Note payable to an investor bearing interest at 12% and maturing on May 26, 2023 with monthly installments of principal and interest of $120,185 beginning in May 2022. 1,222,222 - Note payable to an investor bearing interest at 12% and maturing March 18, 2023. Monthly installments of $22,558 beginning May 2022. 228,200 - Note payable to an investor bearing interest at 12% and maturing February 28, 2023. Monthly installments of $30,000 beginning May 2021. 360,000 - Total Notes Payable 2,502,357 974,562 Less: Unamortized original issue discount 174,512 17,500 Current Portion of Notes Payable 2,011,550 552,055 Long-term Portion of Notes Payable $ 316,295 $ 405,007 Future minimum principal payments on the long-term notes payable to unrelated parties are as follows: Period ending March 31, 2023 $ 2,011,550 2024 144,344 2025 97,660 2026 76,067 2027 172,736 $ 2,502,357 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 5 - Fair Value Measurements The following table presents information about the liabilities that are measured at fair value on a recurring basis at March 31, 2022 and June 30, 2021 and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. At March 31, 2022 Total Level 1 Level 2 Level 3 Derivative liability, convertible note features $ - $ - $ - $ - At June 30, 2021 Total Level 1 Level 2 Level 3 Derivative liability, convertible note features $1,842,000 $ - $ - $1,842,000 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. In December 2021, the derivative liability was eliminated when the Company entered into an agreement to convert the convertible debt into preferred stock. (See Note 6). The derivative liability was valued using the Monte Carlo pricing model with the following inputs: At June 30, 2021 Risk-free interest rate: 0.17% Expected dividend yield: 0.00% Expected stock price volatility: 295.00% Expected option life in years: .037 to .70 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, 2022 and June 30, 2021: Balance at June 30, 2021 $ 1,842,000 Realized (1,842,000) Unrealized - Balance at March 31, 2022 $ - Balance at June 30, 2020 $ 246,612 Convertible securities at inception 4,000 Realized (80,924) Unrealized 1,672,312 Balance at June 30, 2021 $ 1,842,000 As of March 31, 2022 and June 30, 2021, 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. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 6 - Related Party Transactions Notes Payable March 31, 2022 June 30, 2021 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 13, 2021. The note bears interest at 6% per annum 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 was convertible into 400,000 shares of Series D Preferred Stock. If principal was paid prior to maturity, the right of conversion would be terminated. Extinguished by exchange for Series F Preferred Stock on December 28, 2021. - $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. Payment is 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 was payable on November 7, 2021. Note was amended in March 2020 by increasing the balance to $1,225,000. Interest is payable in cash or common stock, at the holder's option. If interest is paid in common stock, the conversion price was to be the market price at the time of conversion. Principal on the note at maturity was convertible into 1,225,000 shares of Series D Preferred Stock. If principal was paid prior to maturity, the right of conversion would be terminated. Extinguished by exchange for Series F Preferred Stock on December 27, 2021. - 1,225,000 Note payable to a stockholder in which the note principal plus 6% interest is payable in November 13, 2021. Interest was payable in cash or common stock, at the Company's option. If interest was paid in common stock, the conversion price would be the market price at the time of conversion. Principal on the note at maturity was convertible into 200,000 shares of Series D Preferred Stock. If principal was paid prior to maturity, the right of conversion would be terminated. Extinguished by exchange for Series F Preferred Stock on December 20, 2021. - 200,000 Note payable to a stockholder in which the note principal plus interest at 15% is payable the earlier of 60 days after invoicing a certain customer, or April 2022 due to an extension granted by the lender. On December 23, 2021, an amendment extended the maturity to March 30, 2025, changed the interest rate to 10% with monthly payments of principal and interest of $8,823 begining in June 2022. The note is collateralized by a security interest in a certain customer purchase order. 385,000 385,000 Note payable related to the 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. 70,000 155,690 Other short-term payables due to stockholders and related parties 32,488 75,986 Total Related Party Notes Payable and Other Payables 1,517,567 3,471,755 Current Portion of Related Party Notes Payable and Other Payables 1,238,443 3,471,755 Long-term Portion of Related Party Notes Payable and Other Payables $ 279,124 $ - As of March 31, 2022, related party notes payable maturities are as follows: Period ending March 31, 2023 $1,238,443 2024 105,876 2025 173,248 $1,517,567 In December of 2021, $1,825,000 of related party convertible notes and 500,000 shares of Series E preferred stock were eliminated upon the execution of an agreement to exchange them for Series F preferred shares. In addition, the agreement of the exchange of the notes resulted in the elimination of the derivative liability related to the conversion features of the notes into Series D Preferred stock. The derivative liability was reduced by $1,842,000 resulting in additional paid in capital of approximately $1,825,000. On March 31, 2022, the recorded derivative liability is $0. Related Party Leases The Company leases property used in operations from a related party under terms of a financing lease. The term of the lease expired on December 31, 2021 and is continuing on a month to month basis. The monthly lease payment is $9,664 plus maintenance and property taxes, as defined in the lease agreement. Rent expense for this lease was $28,992 and $89,500 for the three months ended March 31, 2022 and 2021, respectively and $86,976 and $98,500 for the nine months ended March 31, 2022 and 2021 respectively. Other Related Party 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 4). |
Lease Agreements
Lease Agreements | 9 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Lease Agreements | Note 7 - Lease Agreements Financing Lease Agreements The Company leases offices, warehouses and equipment under financing lease agreements with monthly installments of $22,723 (ranging from $245 to $9,664), expiring through December 2024. Right-of-use assets: Operating right-of-use assets $158,829 Operating lease liabilities: Current portion of long term payable 92,900 Financing leases payable, less current portion 65,929 Total operating lease liabilities $158,829 As of March 31, 2022, financing lease maturities are as follows: Period ending March 31, 2023 $92,900 2024 47,776 2025 18,153 $158,829 As of March 31, 2022, the weighted average remaining lease term was 1.42 years. |
Equity
Equity | 9 Months Ended |
Mar. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Equity | Note 8 – Equity All share amounts have been adjusted to reflect a 1:200 reverse split effective March 7, 2022. For the nine months ended March 31, 2022: During the nine months ended March 31, 2022, the Company issued 73,517 shares of common stock for services. During the nine months ended March 31, 2022, the Company issued 1,625,000 shares of common stock in exchange for proceeds under the Equity Purchase Agreement. These shares were valued at $2,643,500 upon issuance. During the nine months ended March 31, 2022, the Company issued 312,500 shares of common stock as commitment shares in a structured loan agreement. These shares were valued at $356,250 upon issuance. During the nine months ended March 31, 2022, the Company cancelled 241,303 shares of common stock representing fractional shares resulting from the 200:1 reverse split. During the nine months ended March 31, 2022, the Company entered into exchange agreements to issue 11,414 shares of Preferred Series F stock. During the nine months ended March 31, 2022, the Company cancelled 500,000 shares of Preferred Series E stock. For the nine months ended March 31, 2021: During the nine months ended March 31, 2021, the Company issued 529,000 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 6,914,064 shares of common stock for debt reduction. These shares were valued at $13,031,235 upon issuance during the nine months ended March 31, 2021. During the nine months ended March 31, 2021, the Company issued 1,248,961 shares of common stock to warrant holders in six cashless transactions. During the nine months ended March 31, 2021, the Company issued 287,500 shares of common stock for commitment shares under the Equity Purchase Agreement. These shares were valued at $1,177,000 upon issuance during the nine months ended March 31, 2021. During the nine months ended March 31, 2021, the Company issued 250,000 shares of common stock as collateral for the line of credit. The shares were held in the Company's name and serve as collateral for a line of credit with a bank. During the nine months ended March 31, 2021, the Company issued 50,000 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. During the nine months ended March 31, 2021, the Company issued 1,885,000 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. See the capital structure section in Note 1 for disclosure of the equity components included in the Company's consolidated financial statements. |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9 - Income Taxes The Company's effective tax rate differed from the federal statutory income tax rate for the nine months ended March 31, 2022 as follows: Federal statutory rate 21% State tax, net of federal tax effect 5.04% Valuation allowance -26% Effective tax rate 0% The Company had no federal or state income tax (benefit) for the nine months ended March 31, 2022 or 2021. The Company's deferred tax assets and liabilities as of March 31, 2022 and June 30, 2021, are summarized as follows: March 31, 2022 June 30, 2021 Federal Deferred tax assets $ 7,425,300 $ 10,226,700 Less valuation allowance (7,425,300) (10,226,700) Deferred tax liabilities - - - - State Deferred tax assets 1,876,400 2,730,800 Less valuation allowance (1,876,400) (2,730,800) 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, 2022 and 2021, 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 2022 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, 2022 and June 30, 2021, are as follows: March 31, 2022 June 30, 2021 Net operating loss carryforwards $ 9,120,300 $ 12,579,200 Valuation allowance (9,301,700) (12,957,500) Goodwill 16,200 (20,400) Property and equipment (30,300) 251,600 Development costs 112,800 27,900 Intangible assets 36,900 72,900 Inventory allowance 17,600 17,800 Warranty accrual and other 28,200 28,500 Net Deferred Tax Assets $ - $ - As of March 31, 2022, 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, 2022, 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, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies, and Concentrations | Note 10 - Commitments, Contingencies, and Concentrations Contingencies Certain conditions may exist as of the date the unaudited 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 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, 2019, 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 in the note payable to seller of $1,030,079 at March 31, 2022 and June 30, 2021 (Note 6). Concentrations Galaxy contracts the manufacture of its products with domestic and 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 vendors that accounted for approximately 63% of purchases for the nine months ended March 31, 2022. Galaxy had three vendors that accounted for approximately 75% of purchases for the nine months ended March 31, 2021. Galaxy has two customers that accounted for approximately 80% of accounts receivable at March 31, 2022 and two customers that accounted for approximately 73% of accounts receivable at June 30, 2021. Galaxy has two customers that accounted for approximately 63% and one customer that accounted for 36% of total revenue for the three months ended March 31, 2022 and 2021 respectively. Galaxy has two customers that accounted for approximately 49% and four customers that accounted for approximately 52% of total revenue for the nine months ended March 31, 2022 and 2021, respectively. |
Material Agreements
Material Agreements | 9 Months Ended |
Mar. 31, 2022 | |
Disclosure of Material Agreements [Abstract] | |
Material Agreements | Note 11 - Material Agreements Manufacturer and Distributorship Agreement On September 15, 2018, the Company signed an agreement with a company in China for the manufacture of Galaxy’s SLIM series of interactive panels. The manufacturer agreed to manufacture, and the Company agreed to be the sole distributor of the interactive panels in the United States for a term of two years. The agreement includes a commitment by Galaxy to purchase $2 million of product during the first year beginning September 2018. If the minimum purchase is not met, the manufacturer can require the Company to establish a performance improvement plan, and the manufacturer has the right to terminate the agreement. The payment terms are 20% in advance, 30% after the product is ready to ship, and the remaining 50% 45 days after receipt. The manufacturer provides Galaxy with the product, including a three-year manufacturer’s warranty from the date of shipment. The agreement renews automatically in two year increments unless three months’ notice is given by either party. The Company has met the requirements of the agreement. 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. During the three months ended March 31, 2022 and 2021, the Company issued 500,0000 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 an amount up to eighty percent (80%) of the purchase price for the purchased accounts. 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 by two of the stockholders individually. The Company paid collection fees of $11,216 and $2,803 during the three months ended March 31, 2022 and 2021, respectively. The Company paid collection fees of $36,224 and $14,991 during the nine months ended March 31, 2022 and 2021, 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 and preferred stock to maintain, together with the CFO, a minimum 25.5% of the total voting rights. 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/Chief Operations Officer (CFO/COO) of the Company for a two-year term, which was amended on September 1, 2020. Under the amended employment agreement, the CFO/COO will receive annual compensation of $250,000, and an annual discretionary bonus based on profitability and revenue growth and preferred stock to maintain, together with the CEO, a minimum 25.5% of the total voting rights. The agreement includes a non-compete agreement and severance benefits of $72,000. Supplier Agreement The Company is party to a one-year supplier agreement to manufacture and sell audio products to a buyer. 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 completed all purchase orders under the supplier agreement during the nine months ended March 31, 2022. The supplier agreement was not renewed. |
Acquisition
Acquisition | 9 Months Ended |
Mar. 31, 2022 | |
Business Combinations [Abstract] | |
Acquisition | Note 12 - Acquisition 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 (50,000 shares after reverse split) 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 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 Impairment expense relates to the Company's purchase price adjustment for the Classroom Tech acquisition on October 15, 2020. During the acquisition, customer lists and vendor relationship intangible assets were recorded in the amount of $46,869. In October 2021, the Company moved its Florida operations to a new leased location. Management discovered inventory items with missing parts that could not be sold. As a result, the bonus payable of $30,000 to the seller of Classroom Tech was removed, the inventory was written down and the intangible assets were impaired. |
Stock Plan
Stock Plan | 9 Months Ended |
Mar. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Plan | Note 13 - 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 2020 Plan was effective September 16, 2020 and expired December 15, 2021. The 2019 Plan was effective December 13, 2018 and expired June 1, 2020. Common shares of 1,961 are reserved for stock awards under the Plans. There were 98,857,857 shares awarded under the Plans as of March 31, 2022 and June 30, 2021. No additional shares were awarded during the three or nine months ended March 31, 2022. |
Going Concern
Going Concern | 9 Months Ended |
Mar. 31, 2022 | |
Disclosure of Going Concern [Abstract] | |
Going Concern | Note 14 - 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 $2,600,000, an accumulated deficit of approximately $51,000,000, and cash used in operations of approximately $1,400,000 at March 31, 2022. Shareholders equity increased from June 30, 2021 to March 31, 2022 by approximately $1,000,000 to a deficit of approximately $400,000 at March 31, 2022. The Company's operational activities have 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, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 15 - Subsequent Events On May 1, 2022, the Company entered into a 1 year investor relations agreement, requiring payments of $10,000 per month and total restricted stock issues equivalent to $80,000 to be issued in $20,000 increments in May, June, September and December, 2022. On May 5, 2022, a stockholder loaned the Company $150,000 for working capital purposes. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Corporate History, Nature of Business, Mergers and Acquisitions | Corporate History, Nature of Business, Mergers and Acquisitions Galaxy is a manufacturer and U.S. distributor of interactive learning technology hardware and software that allows the presenter and participant to engage in a fully collaborative instructional environment. Galaxy's products include Galaxy's own private-label interactive touch screen panel as well as numerous other national and international branded peripheral and communication devices. New technologies like Galaxy's own touchscreen panels are sold along with renowned brands such as Google Chromebooks, Microsoft Surface Tablets, Lenovo and Acer computers, Verizon WiFi and more. Galaxy's distribution channel consists of approximately 37 resellers across the U.S. who primarily sell its products within the commercial and educational market. Galaxy does not control where the resellers focus their resell efforts; however, the K-12 education market is the largest customer base for Galaxy products comprising nearly 90% of Galaxy's sales. In addition, Galaxy also possesses its own reseller channel where it sells directly to the K-12 market, primarily throughout the Southeast region of the United States. Ehlert Solutions Group, Inc. ("Solutions") and Interlock Concepts, Inc. ("Concepts") are Arizona-based audio design and manufacturing companies creating innovative products that provide fundamental tools for building notification systems primarily to K-12 education market customers located primarily in the north and northwest United States. Solutions and Concepts' products and services allow institutions access to intercom, scheduling, and notification systems with improved ease of use. The products provide an open architecture solution to customers which allows the products to be used in both existing and new environments. Intercom, public announcement (PA), bell and control solutions are easily added and integrated within the open architecture design and software model. These products combine elements over a common internet protocol (IP) network, which minimizes infrastructure requirements and reduces costs by combining systems. On October 15, 2020, Galaxy acquired the assets of Classroom Technologies Solutions, Inc. ("Classroom Tech") for consideration of (a) paying off a secured Classroom Tech loan, not to exceed the greater of 50% of the value of the Classroom Tech assets acquired or $120,000; (b) the issuance of a promissory note in the amount of $44,526 to a Classroom Tech designee; and (c) the issuance of 10 million shares of common stock to the seller of Classroom Tech. Classroom Tech provides cutting-edge presentation products to schools, training facilities, churches, corporations and retail establishments. Their high-quality solutions are customized to meet a variety of needs and budgets in order to provide the best in education and presentation technology. Classroom Tech direct-sources and imports many devices and components which allows the Company to be innovative, nimble, and capable of delivering a broad range of cost-effective solutions. Classroom Tech also offers in-house service and repair facilities and carries many top brands. |
COVID-19 Update | COVID-19 Update The Covid-19 pandemic that began in early 2020 caused shelter-in-place policies, unexpected factory closures, supply chain disruptions, and market volatilities across the globe. As a result of the economic disruptions and unprecedented market volatilities and uncertainties driven by the Covid-19 outbreak, the Company experienced some supply chain disruptions. However, the Company has not experienced any significant payment delays or defaults by our customers as a result of the COVID-19 pandemic. The full impact of the Covid-19 outbreak continues to evolve as of the date of this report. The depth and duration of the pandemic remains unknown. Despite the availability of vaccines, recent surges in the infection rate and the detection of new variants of the virus have reinforced the general consensus that the containment of Covid-19 remains a challenge. Management is actively monitoring the global situation and its effect on its financial condition, liquidity, operations, suppliers, industry, and workforce. |
Basis of Presentation and Interim Financial Information | Basis of Presentation and Interim Financial Information The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and applicable rules and regulations of the Securities and Exchange Commission (the "SEC") pertaining to interim financial information. Accordingly, these interim financial statements do not include all information or footnote disclosures required by GAAP for complete financial statements and, therefore, should be read in conjunction with the Consolidated Financial Statements and notes thereto in the Company’s June 30, 2021 Annual Report on Form 10-K and other current filings with the SEC. In the opinion of management, all adjustments, consisting of those of a normal recurring nature, necessary to present fairly the results of the periods presented have been included. The results of operations for the interim periods presented may not necessarily be indicative of the results to be expected for the full year. |
Principles of Consolidation | Principles of Consolidation The financial statements include the consolidated assets and liabilities of the combined company (collectively Galaxy Next Generation, Inc., Classroom Technology Solutions Inc., Interlock Concepts, Inc., and Ehlert Solutions Group, Inc. referred to collectively as the "Company"). See Note 12. All intercompany transactions and accounts have been eliminated in the consolidation. The Company’s common stock is traded on the over-the-counter public company traded under the stock symbol listing GAXY (formerly FLCR). |
Reverse Stock Split | Reverse Stock Split Unless otherwise noted, all share and per share data referenced in the consolidated financial statements and the notes thereto have been retroactively adjusted to reflect the one-for-two hundred reverse stock split effective March 4, 2022 of our authorized and outstanding shares of common stock. As a result of the reverse stock split, certain amounts in the consolidated financial statements and the notes thereto may be slightly different than previously reported due to rounding of fractional shares, and certain amounts within the consolidated balance sheets were reclassified between common stock and additional paid-in capital. |
Capital Structure | Capital Structure The Company's capital structure is as follows: March 31, 2022 Authorized Issued Outstanding Common stock 20,000,000 17,469,128 17,430,503 $.0001 par value, one vote per share Preferred stock 200,000,000 - - $.0001 par value, one vote per share Preferred stock - Class A 750,000 - - $.0001 par value; no voting rights Preferred stock - Class B 1,000,000 - - Voting rights of 10 votes for Preferred B share; 2% preferred dividend payable annually Preferred stock - Class C 9,000,000 - - $.0001 par value; 500 votes per share, convertible to common stock Preferred stock - Class F 15,000 11,414 11,414 $.001 par value; no voting rights, convertible to common stock at a fixed price of $0.37 per share; stated value is $1,000 per share June 30, 2021 Authorized Issued Outstanding Common stock 20,000,000 15,699,414 15,449,221 $.0001 par value, one vote per share Preferred stock 200,000,000 - - $.0001 par value, one vote per share Preferred stock - Class A 750,000 - - $.0001 par value; no voting rights Preferred stock - Class B 1,000,000 - - Voting rights of 10 votes for 1 Preferred B share; 2% preferred dividend payable annually Preferred stock - Class C 9,000,000 - - $.0001 par value; 500 votes per share, convertible to common stock Preferred stock - Class D 1,000,000 - - $.0001 par value; no voting rights, convertible to common stock, mandatory conversion to common stock 18 months after issue Preferred stock - Class E 500,000 500,000 500,000 $.0001 par value; no voting rights, convertible to common stock There is no publicly traded market for the preferred shares. The Preferred Series D and E were retired in December 2021. There are 5,295,849 common shares reserved at March 31, 2022 under terms of convertible debt agreements, the Stock Plan and the Amended and Restated Equity Purchase Agreement, dated December 29, 2020, with Tysadco Partners LLC ( the “Equity Purchase Agreement”) (see Notes 6, 11 and 13). There are 1,084,861 issued common shares that are restricted as of March 31, 2022. The shares may become free-trading upon satisfaction of certain terms and regulatory conditions. |
Supplier Agreement | Supplier Agreement Contract assets and contract liabilities are as follows: March 31, 2022 June 30, 2021 Contract assets $ 436,930 $ 43,360 Contract liabilities - 228,514 For the three months ended March 31, 2022 and 2021, the Company recognized $463,301 and $214,992 of revenues related to supplier agreements. For the nine months ended March 31, 2022 and 2021, the Company recognized $1,116,219 and $715,067 of revenues related to supplier agreements. |
Accounts Receivable | Accounts Receivable Management deemed no allowance for doubtful accounts was necessary at March 31, 2022 and June 30, 2021. At March 31, 2022 and June 30, 2021, $0 and $190,779 of total accounts receivable were considered unbilled and recorded as deferred revenue. |
Inventories | Inventories Management estimates $67,635 of inventory reserves at March 31, 2022 and June 30, 2021, respectively. |
Goodwill, intangible assets and product development costs | Goodwill, Intangible Assets and Product Development Costs Goodwill, intangible assets, and product development costs are comprised of the following at March 31, 2022: Cost Accumulated Amortization Net Book Value Impairment Total Goodwill $ 834,220 - $834,220 - $ 834,220 Finite-lived assets: Customer list $ 922,053 $ (420,401) $ 501,652 $ (41,053) $460,599 Vendor relationships 484,816 (239,500) 245,316 (5,816) 239,500 Capitalized product development cost 1,157,596 (381,706) 775,890 - 775,890 $ 2,564,465 $ (1,041,607) $ 1,522,858 $ (46,869) $1,475,989 Goodwill, intangible assets, and product development costs are comprised of the following at June 30, 2021: Cost Accumulated Amortization Total Goodwill $ 834,220 $ - $ 834,220 Finite-lived assets: Customer list $ 922,053 $ (314,166) $ 607,887 Vendor relationships 484,816 (168,474) 316,342 Product development costs 790,118 (197,532) 592,586 $ 2,196,987 $ (680,172) $1,516,815 Intangible assets such as customer lists and vendor relationships are stated at the lower of cost or fair value. They are amortized on a straight-line basis over periods ranging from three to six years, representing the period over which the Company expects to receive future economic benefits from these assets. Amortization of these intangible assets amounted to $68,000 and $70,343 for the three months ended March 31, 2022 and 2021. Amortization of these intangible assets amounted to $186,243 and $208,296 for the nine months ended March 31, 2022 and 2021. Costs incurred in designing and developing classroom technology products are expensed as research and development until technological feasibility has been established. Technological feasibility is established upon completion of a detail product design, or in its absence, completion of a working model. Upon the achievement of technological feasibility, development costs are capitalized and subsequently reported at the lower of unamortized cost or net realizable value. Management's judgment is required in determining whether a product provides new or additional functionality, the point at which various products enter the stages at which costs may be capitalized, assessing the ongoing value and impairment of the capitalized costs and determining the estimated useful lives over which the costs are amortized. Annual amortization expense is calculated based on the straight-line method over the product's estimated economic lives, which are typically three to six years. Amortization of product development costs incurred begins when the related products are available for general release to customers. Amortization of product development costs of $69,042 and $26,436 for the three months ended March 31, 2022 and 2021, and $184,176 and $59,364 for the nine months ended March 31, 2022 and 2021, is included in cost of revenues in the Company's unaudited condensed consolidated statements of operations. Estimated amortization expense related to finite-lived intangible assets for the next five years is: $603,836 for fiscal year 2023, $470,584 for fiscal year 2024, $272,139 for fiscal year 2025, $60,292 for fiscal year 2026, and $44,389 for fiscal year 2027 and $24,748 thereafter. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company has implemented all new applicable accounting pronouncements that are in effect and applicable. These pronouncements did not have any material impact on the consolidated financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of capital structure | March 31, 2022 Authorized Issued Outstanding Common stock 20,000,000 17,469,128 17,430,503 $.0001 par value, one vote per share Preferred stock 200,000,000 - - $.0001 par value, one vote per share Preferred stock - Class A 750,000 - - $.0001 par value; no voting rights Preferred stock - Class B 1,000,000 - - Voting rights of 10 votes for Preferred B share; 2% preferred dividend payable annually Preferred stock - Class C 9,000,000 - - $.0001 par value; 500 votes per share, convertible to common stock Preferred stock - Class F 15,000 11,414 11,414 $.001 par value; no voting rights, convertible to common stock at a fixed price of $0.37 per share; stated value is $1,000 per share June 30, 2021 Authorized Issued Outstanding Common stock 20,000,000 15,699,414 15,449,221 $.0001 par value, one vote per share Preferred stock 200,000,000 - - $.0001 par value, one vote per share Preferred stock - Class A 750,000 - - $.0001 par value; no voting rights Preferred stock - Class B 1,000,000 - - Voting rights of 10 votes for 1 Preferred B share; 2% preferred dividend payable annually Preferred stock - Class C 9,000,000 - - $.0001 par value; 500 votes per share, convertible to common stock Preferred stock - Class D 1,000,000 - - $.0001 par value; no voting rights, convertible to common stock, mandatory conversion to common stock 18 months after issue Preferred stock - Class E 500,000 500,000 500,000 $.0001 par value; no voting rights, convertible to common stock |
Schedule of contract assets and contract liabilities | March 31, 2022 June 30, 2021 Contract assets $ 436,930 $ 43,360 Contract liabilities - 228,514 |
Schedule of goodwill and intangible assets | Cost Accumulated Amortization Net Book Value Impairment Total Goodwill $ 834,220 - $834,220 - $ 834,220 Finite-lived assets: Customer list $ 922,053 $ (420,401) $ 501,652 $ (41,053) $460,599 Vendor relationships 484,816 (239,500) 245,316 (5,816) 239,500 Capitalized product development cost 1,157,596 (381,706) 775,890 - 775,890 $ 2,564,465 $ (1,041,607) $ 1,522,858 $ (46,869) $1,475,989 Cost Accumulated Amortization Total Goodwill $ 834,220 $ - $ 834,220 Finite-lived assets: Customer list $ 922,053 $ (314,166) $ 607,887 Vendor relationships 484,816 (168,474) 316,342 Product development costs 790,118 (197,532) 592,586 $ 2,196,987 $ (680,172) $1,516,815 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | March 31, 2022 June 30, 2021 Vehicles $ 212,658 $ 115,135 Building 201,823 - Equipment 16,192 25,115 Leasehold improvements 31,000 31,000 Furniture and fixtures 28,321 25,085 489,994 196,335 Accumulated depreciation (130,531) (109,523) Property and equipment, net $ 359,463 $ 86,812 |
Notes Payable (Tables)
Notes Payable (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of long-term Notes Payable | March 31, 2022 June 30, 2021 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 an interest rate of 3%. In July 2021, the note was renewed by the lender with a revised maturity date of July 7, 2026. 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. $ 215,526 $ 237,039 Note payable to an investor bearing interest at 10% and maturing on January 13, 2022 with monthly installments of principal and interest of $45,294 beginning in June 2021. This note was paid in full on May 2, 2022. 55,551 348,456 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 upon notification by the SBA regarding note servicing. In March 2022, SBA deferred maturity for 30 months from the date of the note. Revised maturity date is November 2052. 150,000 150,000 Financing lease liabilities for offices and warehouses with monthly installments of $22,723 (ranging from $245 to $9,664) over terms expiring through December 2024. 158,829 208,051 Note payable with a finance company for delivery vehicle with monthly installments totaling $679 including interest at 8.99% over a 6 year term expiring in December 2025. 26,921 31,016 Note payable with a bank for delivery vehicle with monthly installments totaling $844 including interest at 6% over a 4 year term expiring in August 2025. 31,281 - Note payable with a finance company for delivery vehicle with monthly installments totaling $948 including interest at 5.9% over a 6 year term expiring in January 2027. 53,827 - Note payable to an investor bearing interest at 12% and maturing on May 26, 2023 with monthly installments of principal and interest of $120,185 beginning in May 2022. 1,222,222 - Note payable to an investor bearing interest at 12% and maturing March 18, 2023. Monthly installments of $22,558 beginning May 2022. 228,200 - Note payable to an investor bearing interest at 12% and maturing February 28, 2023. Monthly installments of $30,000 beginning May 2021. 360,000 - Total Notes Payable 2,502,357 974,562 Less: Unamortized original issue discount 174,512 17,500 Current Portion of Notes Payable 2,011,550 552,055 Long-term Portion of Notes Payable $ 316,295 $ 405,007 |
Schedule of Future minimum principal payments on the long term notes payable to Unrelated parties | Period ending March 31, 2023 $ 2,011,550 2024 144,344 2025 97,660 2026 76,067 2027 172,736 $ 2,502,357 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair values determined by level 3 inputs | At March 31, 2022 Total Level 1 Level 2 Level 3 Derivative liability, convertible note features $ - $ - $ - $ - At June 30, 2021 Total Level 1 Level 2 Level 3 Derivative liability, convertible note features $1,842,000 $ - $ - $1,842,000 |
Schedule of derivative liability valued using monte carlo pricing model | At June 30, 2021 Risk-free interest rate: 0.17% Expected dividend yield: 0.00% Expected stock price volatility: 295.00% Expected option life in years: .037 to .70 years |
Schedule of reconciliation of changes in fair value of convertible debt | Balance at June 30, 2021 $ 1,842,000 Realized (1,842,000) Unrealized - Balance at March 31, 2022 $ - Balance at June 30, 2020 $ 246,612 Convertible securities at inception 4,000 Realized (80,924) Unrealized 1,672,312 Balance at June 30, 2021 $ 1,842,000 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of notes payable | March 31, 2022 June 30, 2021 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 13, 2021. The note bears interest at 6% per annum 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 was convertible into 400,000 shares of Series D Preferred Stock. If principal was paid prior to maturity, the right of conversion would be terminated. Extinguished by exchange for Series F Preferred Stock on December 28, 2021. - $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. Payment is 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 was payable on November 7, 2021. Note was amended in March 2020 by increasing the balance to $1,225,000. Interest is payable in cash or common stock, at the holder's option. If interest is paid in common stock, the conversion price was to be the market price at the time of conversion. Principal on the note at maturity was convertible into 1,225,000 shares of Series D Preferred Stock. If principal was paid prior to maturity, the right of conversion would be terminated. Extinguished by exchange for Series F Preferred Stock on December 27, 2021. - 1,225,000 Note payable to a stockholder in which the note principal plus 6% interest is payable in November 13, 2021. Interest was payable in cash or common stock, at the Company's option. If interest was paid in common stock, the conversion price would be the market price at the time of conversion. Principal on the note at maturity was convertible into 200,000 shares of Series D Preferred Stock. If principal was paid prior to maturity, the right of conversion would be terminated. Extinguished by exchange for Series F Preferred Stock on December 20, 2021. - 200,000 Note payable to a stockholder in which the note principal plus interest at 15% is payable the earlier of 60 days after invoicing a certain customer, or April 2022 due to an extension granted by the lender. On December 23, 2021, an amendment extended the maturity to March 30, 2025, changed the interest rate to 10% with monthly payments of principal and interest of $8,823 begining in June 2022. The note is collateralized by a security interest in a certain customer purchase order. 385,000 385,000 Note payable related to the 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. 70,000 155,690 Other short-term payables due to stockholders and related parties 32,488 75,986 Total Related Party Notes Payable and Other Payables 1,517,567 3,471,755 Current Portion of Related Party Notes Payable and Other Payables 1,238,443 3,471,755 Long-term Portion of Related Party Notes Payable and Other Payables $ 279,124 $ - |
Schedule of related party notes payable maturities | Period ending March 31, 2023 $1,238,443 2024 105,876 2025 173,248 $1,517,567 |
Lease Agreements (Tables)
Lease Agreements (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Schedule of operating lease right-of-use assets and operating lease liabilities | Right-of-use assets: Operating right-of-use assets $158,829 Operating lease liabilities: Current portion of long term payable 92,900 Financing leases payable, less current portion 65,929 Total operating lease liabilities $158,829 |
Schedule of operating leases | Period ending March 31, 2023 $92,900 2024 47,776 2025 18,153 $158,829 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of effective tax rate differed from federal statutory income tax rate | Federal statutory rate 21% State tax, net of federal tax effect 5.04% Valuation allowance -26% Effective tax rate 0% |
Schedule of deferred tax assets and liabilities | March 31, 2022 June 30, 2021 Federal Deferred tax assets $ 7,425,300 $ 10,226,700 Less valuation allowance (7,425,300) (10,226,700) Deferred tax liabilities - - - - State Deferred tax assets 1,876,400 2,730,800 Less valuation allowance (1,876,400) (2,730,800) Deferred tax liabilities - - - - Net Deferred Tax Assets $ - $ - |
Schedule of significant components of deferred tax assets | March 31, 2022 June 30, 2021 Net operating loss carryforwards $ 9,120,300 $ 12,579,200 Valuation allowance (9,301,700) (12,957,500) Goodwill 16,200 (20,400) Property and equipment (30,300) 251,600 Development costs 112,800 27,900 Intangible assets 36,900 72,900 Inventory allowance 17,600 17,800 Warranty accrual and other 28,200 28,500 Net Deferred Tax Assets $ - $ - |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Business Combinations [Abstract] | |
Schedule of assets and liabilities 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 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_3
Summary of Significant Accounting Policies (Details) - USD ($) | Oct. 15, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 |
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Sales percentage | 90.00% | |||||
Assets acquired | $ 345,526 | |||||
Common shares reserved under terms of the convertible debt agreements and stock plan (in Shares) | 5,295,849 | |||||
Restricted common shares issued (in Shares) | 1,084,861 | |||||
Recognized revenue | $ 463,301 | $ 214,992 | $ 1,116,219 | $ 715,067 | ||
Allowance for doubtful accounts | 0 | 0 | $ 0 | |||
Accounts receivable - unbilled | 0 | 0 | 190,779 | |||
Inventory reserves | 67,635 | 67,635 | $ 67,635 | |||
Amortization expense | 68,000 | 70,343 | 186,243 | 208,296 | ||
Amortization of product development costs | 69,042 | $ 26,436 | 184,176 | $ 59,364 | ||
Estimated amortization expense related to intangible assets 2023 | 603,836 | 603,836 | ||||
Estimated amortization expense related to intangible assets 2024 | 470,584 | 470,584 | ||||
Estimated amortization expense related to intangible assets 2025 | 272,139 | 272,139 | ||||
Estimated amortization expense related to intangible assets 2026 | 60,292 | 60,292 | ||||
Estimated amortization expense related to intangible assets 2027 | 44,389 | 44,389 | ||||
Estimated amortization expense related to intangible assets thereafter | $ 24,748 | $ 24,748 | ||||
Minimum [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Useful life of intangible assets | 3 years | |||||
Maximum [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Useful life of intangible assets | 6 years | |||||
Asset Purchase Agreement with Classroom Technologies Solutions, Inc [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Assets acquired | 120,000 | |||||
Promissory note | $ 44,526 | |||||
Issuance of shares (in Shares) | 10,000,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of capital structure - shares | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Jun. 30, 2021 | |
Summary of Significant Accounting Policies (Details) - Schedule of capital structure [Line Items] | ||
Common Stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 17,469,128 | 15,699,414 |
Common stock, outstanding | 17,430,503 | 15,449,221 |
Common stockCommon stock, par or stated value per share | $.0001 par value, one vote per share | $.0001 par value, one vote per share |
Preferred stock, shares authorized | 200,000,000 | 200,000,000 |
Preferred stock, shares issued | ||
Preferred stock, outstanding | ||
Preferred stock, par or stated value per share | $.0001 par value, one vote per share | $.0001 par value, one vote per share |
Preferred Class A [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of capital structure [Line Items] | ||
Preferred stock, shares authorized | 750,000 | 750,000 |
Preferred stock, shares issued | ||
Preferred stock, outstanding | ||
Preferred stock, par or stated value per share | $.0001 par value; no voting rights | $.0001 par value; no voting rights |
Preferred Class B [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of capital structure [Line Items] | ||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | ||
Preferred stock, outstanding | ||
Preferred stock, par or stated value per share | Voting rights of 10 votes for Preferred B share; 2% preferred dividend payable annually | Voting rights of 10 votes for 1 Preferred B share; 2% preferred dividend payable annually |
Preferred Class C [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of capital structure [Line Items] | ||
Preferred stock, shares authorized | 9,000,000 | 9,000,000 |
Preferred stock, shares issued | ||
Preferred stock, outstanding | ||
Preferred stock, par or stated value per share | $.0001 par value; 500 votes per share, convertible to common stock | $.0001 par value; 500 votes per share, convertible to common stock |
Preferred Class F [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of capital structure [Line Items] | ||
Preferred stock, shares authorized | 15,000 | |
Preferred stock, shares issued | 11,414 | |
Preferred stock, outstanding | 11,414 | |
Preferred stock, par or stated value per share | $.001 par value; no voting rights, convertible to common stock at a fixed price of $0.37 per share; stated value is $1,000 per share | |
Preferred Class D [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of capital structure [Line Items] | ||
Preferred stock, shares authorized | 1,000,000 | |
Preferred stock, shares issued | ||
Preferred stock, outstanding | ||
Preferred stock, par or stated value per share | $.0001 par value; no voting rights, convertible to common stock, mandatory conversion to common stock 18 months after issue | |
Preferred Class E [Member] | ||
Summary of Significant Accounting Policies (Details) - Schedule of capital structure [Line Items] | ||
Preferred stock, shares authorized | 500,000 | |
Preferred stock, shares issued | 500,000 | |
Preferred stock, outstanding | 500,000 | |
Preferred stock, par or stated value per share | $.0001 par value; no voting rights, convertible to common stock |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of contract assets and contract liabilities - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Schedule of contract assets and contract liabilities [Abstract] | ||
Contract assets | $ 436,930 | $ 43,360 |
Contract liabilities | $ 228,514 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of goodwill and intangible assets - USD ($) | 9 Months Ended | |
Mar. 31, 2022 | Jun. 30, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 2,564,465 | $ 2,196,987 |
Accumulated Amortization | (1,041,607) | (680,172) |
Net Book Value | 1,522,858 | |
Impairment | (46,869) | |
Total | 1,475,989 | 1,516,815 |
Goodwill [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 834,220 | 834,220 |
Accumulated Amortization | ||
Net Book Value | 834,220 | |
Impairment | ||
Total | 834,220 | 834,220 |
Customer List [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 922,053 | 922,053 |
Accumulated Amortization | (420,401) | (314,166) |
Net Book Value | 501,652 | |
Impairment | (41,053) | |
Total | 460,599 | 607,887 |
Vendor relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 484,816 | 484,816 |
Accumulated Amortization | (239,500) | (168,474) |
Net Book Value | 245,316 | |
Impairment | (5,816) | |
Total | 239,500 | 316,342 |
Product Development Costs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 1,157,596 | 790,118 |
Accumulated Amortization | (381,706) | (197,532) |
Net Book Value | 775,890 | |
Impairment | ||
Total | $ 775,890 | $ 592,586 |
Property and Equipment (Details
Property and Equipment (Details) - Schedule of property and equipment - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 489,994 | $ 196,335 |
Accumulated depreciation | (130,531) | (109,523) |
Property and equipment, net | 359,463 | 86,812 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 212,658 | 115,135 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 201,823 | |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 16,192 | 25,115 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 31,000 | 31,000 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 28,321 | $ 25,085 |
Lines of Credit (Details)
Lines of Credit (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |
Oct. 29, 2021 | Mar. 31, 2022 | Jun. 30, 2021 | |
Lines of Credit (Details) [Line Items] | |||
Line of credit maximum borrowing capacity | $ 1,000,000 | ||
Line of credit repayment grace period | 30 days | ||
Number of common stock owned by two stockholders (in Shares) | 7,026,894 | ||
Percentage of curtailment of outstanding balance | 20.00% | ||
Line of credit | $ 0 | $ 991,598 | |
Accounts Receivable Factoring Agreement [Member] | |||
Lines of Credit (Details) [Line Items] | |||
Line of credit | 989,680 | $ 1,000,000 | |
Available credit line | $ 1,000,000 | ||
Line of Credit Interest Bearing [Member] | |||
Lines of Credit (Details) [Line Items] | |||
Interest rate basis | prime plus 0.5% | ||
Interest rate | 3.75% | ||
Debt maturity | Oct. 29, 2021 |
Notes Payable (Details) - Sched
Notes Payable (Details) - Schedule of long-term Notes Payable - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Debt Instrument [Line Items] | ||
Total notes payable | $ 2,502,357 | $ 974,562 |
Less: Unamortized original issue discount | 174,512 | 17,500 |
Current Portion of Notes Payable | 2,011,550 | 552,055 |
Long-term Portion of Notes Payable | 316,295 | 405,007 |
Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Total notes payable | 237,039 | |
Notes Payable One [Member] | ||
Debt Instrument [Line Items] | ||
Total notes payable | 55,551 | 348,456 |
Notes Payable Two [Member] | ||
Debt Instrument [Line Items] | ||
Total notes payable | 150,000 | 150,000 |
Notes Payable Three [Member] | ||
Debt Instrument [Line Items] | ||
Total notes payable | 158,829 | 208,051 |
Notes Payable Four [Member] | ||
Debt Instrument [Line Items] | ||
Total notes payable | 26,921 | 31,016 |
Notes Payable Five [Member] | ||
Debt Instrument [Line Items] | ||
Total notes payable | 31,281 | |
Notes Payable Six [Member] | ||
Debt Instrument [Line Items] | ||
Total notes payable | 53,827 | |
Notes Payable Seven [Member] | ||
Debt Instrument [Line Items] | ||
Total notes payable | 1,222,222 | |
Notes Payable Eight [Member] | ||
Debt Instrument [Line Items] | ||
Total notes payable | 228,200 | |
Notes Payable Nine [Member] | ||
Debt Instrument [Line Items] | ||
Total notes payable | $ 360,000 |
Notes Payable (Details) - Sch_2
Notes Payable (Details) - Schedule of long-term Notes Payable (Parentheticals) - USD ($) | 1 Months Ended | 9 Months Ended |
Jul. 31, 2021 | Mar. 31, 2022 | |
Debt Instrument [Line Items] | ||
Debt term | 6 years | |
Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.00% | |
lowered interest rate | 3.00% | |
Maturity date | July 7, 2026 | |
Notes Payable One [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | January 13, 2022 | |
Investor bearing interest | 10.00% | |
Principal and interest | $ 45,294 | |
Notes Payable Two [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | November, 2052 | |
Principal and interest | $ 731 | |
Bearing interest rate | 3.75% | |
Expiring | May, 2050 | |
Notes Payable Three [Member] | ||
Debt Instrument [Line Items] | ||
Offices and warehouses with monthly installments | $ 22,723 | |
Expiring through | December 2024 | |
Notes Payable Three [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Offices and warehouses with monthly installments | $ 245 | |
Notes Payable Three [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Offices and warehouses with monthly installments | 9,664 | |
Notes Payable Four [Member] | ||
Debt Instrument [Line Items] | ||
Monthly installments | $ 679 | |
Interest percentage | 8.99% | |
Expiring term | December 2025 | |
Notes Payable Five [Member] | ||
Debt Instrument [Line Items] | ||
Monthly installments | $ 844 | |
Interest percentage | 6.00% | |
Expiring term | August 2025 | |
Debt term | 4 years | |
Notes Payable Six [Member] | ||
Debt Instrument [Line Items] | ||
Monthly installments | $ 948 | |
Interest percentage | 5.90% | |
Expiring term | January 2027 | |
Debt term | 6 years | |
Notes Payable Seven [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | May 26, 2023 | |
Principal and interest | $ 120,185 | |
Bearing interest rate | 12.00% | |
Expiring term | May 2022 | |
Notes Payable Eight [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | March 18, 2023 | |
Bearing interest rate | 12.00% | |
Monthly installments | $ 22,558 | |
Expiring term | May 2022 | |
Notes Payable Nine [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date | February 28, 2023 | |
Bearing interest rate | 12.00% | |
Monthly installments | $ 30,000 | |
Expiring term | May 2021 |
Notes Payable (Details) - Sch_3
Notes Payable (Details) - Schedule of Future minimum principal payments on the long term notes payable to Unrelated parties - Long-term Notes Payable [Member] | Mar. 31, 2022USD ($) |
Notes Payable (Details) - Schedule of Future minimum principal payments on the long term notes payable to Unrelated parties [Line Items] | |
2023 | $ 2,011,550 |
2024 | 144,344 |
2025 | 97,660 |
2026 | 76,067 |
2027 | 172,736 |
Total | $ 2,502,357 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements (Details) [Line Items] | ||
Asset amounted | $ 834,220 | $ 834,220 |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details) - Schedule of fair values determined by level 3 inputs - Fair Value, Recurring [Member] - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Fair Value Measurements (Details) - Schedule of fair values determined by level 3 inputs [Line Items] | ||
Derivative liability, convertible note features | $ 1,842,000 | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Measurements (Details) - Schedule of fair values determined by level 3 inputs [Line Items] | ||
Derivative liability, convertible note features | ||
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Measurements (Details) - Schedule of fair values determined by level 3 inputs [Line Items] | ||
Derivative liability, convertible note features | ||
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurements (Details) - Schedule of fair values determined by level 3 inputs [Line Items] | ||
Derivative liability, convertible note features | $ 1,842,000 |
Fair Value Measurements (Deta_3
Fair Value Measurements (Details) - Schedule of derivative liability valued using monte carlo pricing model | 12 Months Ended |
Jun. 30, 2021 | |
Risk-free interest rate [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative Liability Valued Using Monte Carlo Pricing Model | 0.17% |
Expected dividend yield [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative Liability Valued Using Monte Carlo Pricing Model | 0.00% |
Expected stock price volatility [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative Liability Valued Using Monte Carlo Pricing Model | 295.00% |
Expected option life in years [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative Liability Valued Using Monte Carlo Pricing Model | .037 to .70 years |
Fair Value Measurements (Deta_4
Fair Value Measurements (Details) - Schedule of reconciliation of changes in fair value of convertible debt - Level 3 [Member] - USD ($) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Jun. 30, 2021 | |
Fair Value Measurements (Details) - Schedule of reconciliation of changes in fair value of convertible debt [Line Items] | ||
Balance at beginning | $ 1,842,000 | $ 246,612 |
Convertible securities at inception | 4,000 | |
Realized | (1,842,000) | (80,924) |
Unrealized | 1,672,312 | |
Balance at ending | $ 1,842,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Related Party Transactions (Details) [Line Items] | |||||
Related party convertible notes | $ 1,825,000 | ||||
Derivative liability | 1,842,000 | ||||
Additional paid in capital | $ 1,825,000 | $ 0 | $ 0 | ||
Monthly lease payment | 9,664 | ||||
Operating leases, rent expense | 28,992 | $ 89,500 | 86,976 | $ 98,500 | |
Short term commercial deposit | $ 274,900 | 274,900 | |||
Series E Preferred Stock [Member] | |||||
Related Party Transactions (Details) [Line Items] | |||||
Conversion of shares (in Shares) | 500,000 | ||||
Other Agreements [Member] | |||||
Related Party Transactions (Details) [Line Items] | |||||
Collateral fee | $ 7,500 |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of notes payable - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Related Party Transaction [Line Items] | ||
Other short-term payables due to stockholders and related parties | $ 32,488 | $ 75,986 |
Total Related Party Notes Payable and Other Payables | 1,517,567 | 3,471,755 |
Current Portion of Related Party Notes Payable and Other Payables | 1,238,443 | 3,471,755 |
Long-term Portion of Related Party Notes Payable and Other Payables | 279,124 | |
Long-term Note Payable to Related Party - 1 [Member] | ||
Related Party Transaction [Line Items] | ||
Total Related Party Notes Payable and Other Payables | 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 | |
Long-term Note Payable to Related Party - 4 [Member] | ||
Related Party Transaction [Line Items] | ||
Total Related Party Notes Payable and Other Payables | 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 | $ 70,000 | $ 155,690 |
Related Party Transactions (D_3
Related Party Transactions (Details) - Schedule of notes payable (Parentheticals) - USD ($) | 9 Months Ended | |
Mar. 31, 2022 | Jun. 30, 2021 | |
Long-term Note Payable to Related Party - 1 [Member] | ||
Related Party Transaction [Line Items] | ||
Notes payable | $ 200,000 | $ 200,000 |
Interest payable | $ 10,000 | $ 10,000 |
Debt maturity | Nov. 13, 2021 | Nov. 13, 2021 |
Interest rate | 6.00% | 6.00% |
Conversion of shares | 400,000 | 400,000 |
Long-term Note Payable to Related Party - 1 [Member] | Series D Preferred Stock [Member] | ||
Related Party Transaction [Line Items] | ||
Increase of notes payable | $ 400,000 | $ 400,000 |
Long-term Note Payable to Related Party - 2 [Member] | ||
Related Party Transaction [Line Items] | ||
Debt maturity | Nov. 30, 2021 | Nov. 30, 2021 |
Interest rate | 3.00% | 3.00% |
Long-term Note Payable to Related Party - 3 [Member] | ||
Related Party Transaction [Line Items] | ||
Notes payable | $ 1,225,000 | $ 1,225,000 |
Debt maturity | Nov. 7, 2021 | Nov. 7, 2021 |
Interest rate | 6.00% | 6.00% |
Long-term Note Payable to Related Party - 3 [Member] | Series D Preferred Stock [Member] | ||
Related Party Transaction [Line Items] | ||
Conversion of shares | 1,225,000 | 1,225,000 |
Long-term Note Payable to Related Party - 4 [Member] | ||
Related Party Transaction [Line Items] | ||
Debt maturity | Nov. 13, 2021 | Nov. 13, 2021 |
Interest rate | 6.00% | 6.00% |
Long-term Note Payable to Related Party - 4 [Member] | Series D Preferred Stock [Member] | ||
Related Party Transaction [Line Items] | ||
Conversion of shares | 200,000 | 200,000 |
Long-term Note Payable to Related Party - 5 [Member] | ||
Related Party Transaction [Line Items] | ||
Debt maturity | Apr. 30, 2022 | Apr. 30, 2022 |
Interest rate | 15.00% | 15.00% |
Long-term Note Payable to Related Party - 5 [Member] | December 23, 2021 [Member] | ||
Related Party Transaction [Line Items] | ||
Debt maturity | Mar. 30, 2025 | Mar. 30, 2025 |
Interest rate | 10.00% | 10.00% |
Monthly lease payment | $ 8,823 | $ 8,823 |
Related Party Transactions (D_4
Related Party Transactions (Details) - Schedule of related party notes payable maturities - Notes Payable [Member] | Mar. 31, 2022USD ($) |
Debt Instrument, Redemption [Line Items] | |
2023 | $ 1,238,443 |
2024 | 105,876 |
2025 | 173,248 |
Related Party Notes Payable | $ 1,517,567 |
Lease Agreements (Details)
Lease Agreements (Details) | 9 Months Ended |
Mar. 31, 2022USD ($) | |
Lease Agreements (Details) [Line Items] | |
Monthly lease payment | $ 9,664 |
Weighted average remaining lease term | 1 year 5 months 1 day |
Financial Institution [Member] | |
Lease Agreements (Details) [Line Items] | |
Monthly lease payment | $ 22,723 |
Lease expiration date | December 2024 |
Financial Institution [Member] | Minimum [Member] | |
Lease Agreements (Details) [Line Items] | |
Monthly lease payment | $ 245 |
Financial Institution [Member] | Maximum [Member] | |
Lease Agreements (Details) [Line Items] | |
Monthly lease payment | $ 9,664 |
Lease Agreements (Details) - Sc
Lease Agreements (Details) - Schedule of operating lease right-of-use assets and operating lease liabilities - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Right-of-use assets: | ||
Operating right-of-use assets | $ 158,829 | $ 208,051 |
Operating lease liabilities: | ||
Current portion of long term payable | 92,900 | |
Financing leases payable, less current portion | 65,929 | |
Total operating lease liabilities | $ 158,829 |
Lease Agreements (Details) - _2
Lease Agreements (Details) - Schedule of operating leases | Mar. 31, 2022USD ($) |
Schedule of operating leases [Abstract] | |
2023 | $ 92,900 |
2024 | 47,776 |
2025 | 18,153 |
Total operating lease payments | $ 158,829 |
Equity (Details)
Equity (Details) - USD ($) | Mar. 08, 2022 | Mar. 31, 2022 | Mar. 31, 2021 |
Equity (Details) [Line Items] | |||
Reverse split, description | All share amounts have been adjusted to reflect a 1:200 reverse split effective March 7, 2022. | ||
Cancellation of common stock representing fractional shares | 241,303 | ||
Shares of common stock for services [Member] | |||
Equity (Details) [Line Items] | |||
Share issued | 73,517 | ||
Shares Issued Stock Purchase Agreement [Member] | |||
Equity (Details) [Line Items] | |||
Share issued | 1,625,000 | ||
Share issued value (in Dollars) | $ 2,643,500 | ||
Shares Issued Stock Loan Agreement [Member] | |||
Equity (Details) [Line Items] | |||
Share issued | 312,500 | ||
Consulting services [Member] | |||
Equity (Details) [Line Items] | |||
Share issued value (in Dollars) | $ 356,250 | ||
Professional consulting services [Member] | |||
Equity (Details) [Line Items] | |||
Share issued | 529,000 | ||
Share issued value (in Dollars) | $ 2,778,550 | ||
Common Stock Debt Reduction [Member] | |||
Equity (Details) [Line Items] | |||
Share issued | 6,914,064 | ||
Share issued value (in Dollars) | $ 13,031,235 | ||
Warrant holders [Member] | |||
Equity (Details) [Line Items] | |||
Share issued | 1,248,961 | ||
Commitment Shares Under Equity Purchase Agreement [Member] | |||
Equity (Details) [Line Items] | |||
Share issued | 287,500 | ||
Share issued value (in Dollars) | $ 1,177,000 | ||
Line of Credit [Member] | |||
Equity (Details) [Line Items] | |||
Common stock issued as collateral | 250,000 | ||
Classroom Technology Solutions, Inc. [Member] | |||
Equity (Details) [Line Items] | |||
Share issued | 50,000 | ||
Share issued value (in Dollars) | $ 151,000 | ||
Equity Purchase Agreement [Member] | |||
Equity (Details) [Line Items] | |||
Share issued | 1,885,000 | ||
Share issued value (in Dollars) | $ 8,292,400 | ||
Preferred Series F Stock [Member] | |||
Equity (Details) [Line Items] | |||
Share issued | 11,414 | ||
Preferred Series E Stock [Member] | |||
Equity (Details) [Line Items] | |||
Number of common stock cancelled | 500,000 |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of effective tax rate differed from federal statutory income tax rate | 9 Months Ended |
Mar. 31, 2022 | |
Schedule of effective tax rate differed from federal statutory income tax rate [Abstract] | |
Federal statutory rate | 21.00% |
State tax, net of federal tax effect | 5.04% |
Valuation allowance | (26.00%) |
Effective tax rate | 0.00% |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of deferred tax assets and liabilities - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Federal | ||
Less valuation allowance | $ (9,301,700) | $ (12,957,500) |
Net Deferred Tax Assets | ||
Federal [Member] | ||
Federal | ||
Deferred tax assets | 7,425,300 | 10,226,700 |
Less valuation allowance | (7,425,300) | (10,226,700) |
Deferred tax liabilities | ||
Total | ||
State [Member] | ||
Federal | ||
Deferred tax assets | 1,876,400 | 2,730,800 |
Less valuation allowance | (1,876,400) | (2,730,800) |
Deferred tax liabilities | ||
Total |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of significant components of deferred tax assets - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Schedule of significant components of deferred tax assets [Abstract] | ||
Net operating loss carryforwards | $ 9,120,300 | $ 12,579,200 |
Valuation allowance | (9,301,700) | (12,957,500) |
Goodwill | 16,200 | (20,400) |
Property and equipment | (30,300) | 251,600 |
Development costs | 112,800 | 27,900 |
Intangible assets | 36,900 | 72,900 |
Inventory allowance | 17,600 | 17,800 |
Warranty accrual and other | 28,200 | 28,500 |
Net Deferred Tax Assets |
Commitments, Contingencies, a_2
Commitments, Contingencies, and Concentrations (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | Oct. 31, 2021 | Sep. 04, 2019 | |
Commitments, Contingencies, and Concentrations (Details) [Line Items] | |||||
Accrued liability (in Dollars) | $ 823,788 | $ 213,772 | |||
Note payable (in Dollars) | $ 30,000 | ||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Two vendors [Member] | |||||
Commitments, Contingencies, and Concentrations (Details) [Line Items] | |||||
Concentrations risk | 63.00% | ||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Three vendors [Member] | |||||
Commitments, Contingencies, and Concentrations (Details) [Line Items] | |||||
Concentrations risk | 75.00% | ||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Two customer [Member] | |||||
Commitments, Contingencies, and Concentrations (Details) [Line Items] | |||||
Concentrations risk | 80.00% | 73.00% | |||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Two customer [Member] | |||||
Commitments, Contingencies, and Concentrations (Details) [Line Items] | |||||
Concentrations risk | 63.00% | ||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | One customer [Member] | |||||
Commitments, Contingencies, and Concentrations (Details) [Line Items] | |||||
Concentrations risk | 36.00% | ||||
Galaxy [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Two customer [Member] | |||||
Commitments, Contingencies, and Concentrations (Details) [Line Items] | |||||
Concentrations risk | 49.00% | ||||
Galaxy [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Four customers [Member] | |||||
Commitments, Contingencies, and Concentrations (Details) [Line Items] | |||||
Concentrations risk | 52.00% | ||||
Concepts and Solutions [Member] | |||||
Commitments, Contingencies, and Concentrations (Details) [Line Items] | |||||
Accrued liability (in Dollars) | $ 591,000 | ||||
Note payable (in Dollars) | $ 1,030,079 | $ 1,030,079 |
Material Agreements (Details)
Material Agreements (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jul. 30, 2020USD ($) | May 31, 2020USD ($) | Sep. 15, 2018USD ($) | Mar. 31, 2022USD ($)shares | Mar. 31, 2021USD ($)shares | Mar. 31, 2022USD ($)shares | Mar. 31, 2021USD ($)shares | |
Material Agreements (Details) [Line Items] | |||||||
Payment term percentage | 20.00% | ||||||
Advance payment percentage | 30.00% | ||||||
Remaining payment percentage | 50.00% | ||||||
Percentage of factoring fees increases | 3.50% | ||||||
Chief Executive Officer [Member] | |||||||
Material Agreements (Details) [Line Items] | |||||||
Annual compensation | $ 500,000 | ||||||
Preferred voting rights | a minimum 25.5% of the total voting rights | ||||||
Non-compete agreement and severance benefits | $ 90,000 | $ 90,000 | |||||
Chief Financial Officer [Member] | |||||||
Material Agreements (Details) [Line Items] | |||||||
Annual compensation | $ 250,000 | ||||||
Preferred voting rights | a minimum 25.5% of the total voting rights | ||||||
Non-compete agreement and severance benefits | $ 72,000 | $ 72,000 | |||||
Manufacturing And Distributorship Agreement [Member] | |||||||
Material Agreements (Details) [Line Items] | |||||||
Minimum purchase commitment | $ 2,000,000 | ||||||
Equity Purchase Agreement [Member] | |||||||
Material Agreements (Details) [Line Items] | |||||||
Value of shares purchased | $ 10,000,000 | ||||||
Shares issued (in Shares) | shares | 5,000,000 | 675,000 | 1,625,000 | 1,885,000 | |||
Accounts Receivable Factoring Agreement [Member] | |||||||
Material Agreements (Details) [Line Items] | |||||||
Percentage of purchase price | 80.00% | ||||||
Percentage of factoring fees | 2.50% | ||||||
Credit line | $ 1,000,000 | ||||||
Factored receivables | $ 300,000 | ||||||
Collection fees | $ 11,216 | $ 2,803 | $ 36,224 | $ 14,991 | |||
Supply Agreement [Member] | |||||||
Material Agreements (Details) [Line Items] | |||||||
Number of units ordered under supply agreement | 4,000 | ||||||
Supply agreement amount | $ 3,488,000 | ||||||
Tooling costs | $ 25 |
Acquisition (Details)
Acquisition (Details) - USD ($) | Oct. 15, 2020 | Oct. 31, 2021 |
Acquisition (Details) [Line Items] | ||
Assets acquired | $ 345,526 | |
Shares reverse split (in Shares) | 50,000 | |
Intangible assets | $ 46,869 | |
Bonus payable | $ 30,000 | |
Asset Purchase Agreement with Classroom Technologies Solutions, Inc [Member] | ||
Acquisition (Details) [Line Items] | ||
Assets acquired | $ 120,000 | |
Promissory note | $ 44,526 | |
Purchase price for acquisition in shares (in Shares) | 10,000,000 |
Acquisition (Details) - Schedul
Acquisition (Details) - Schedule of assets and liabilities as of the acquisition date through pushdown accounting | Oct. 15, 2020USD ($) |
Assets | |
Cash | $ 38,836 |
Accounts receivable | 31,710 |
Inventory | 209,431 |
Property and equipment | 17,530 |
Other assets | 1,150 |
Intangibles | 46,869 |
Total Assets | 345,526 |
Classroom Technologies Solutions, Inc. [Member] | |
Consideration | |
Notes payable to seller and related party of 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, 2022 | Jun. 30, 2021 | |
Stock Plan (Details) [Line Items] | ||
Shares reserved | 1,961 | |
Shares awarded under stock plan | 98,857,857 | 98,857,857 |
Going Concern (Details)
Going Concern (Details) | 9 Months Ended |
Mar. 31, 2022USD ($) | |
Disclosure of Going Concern [Abstract] | |
Working capital deficit | $ 2,600,000 |
Accumulated deficit | 51,000,000 |
Cash used in operations | 1,400,000 |
Shareholders equity increased | 1,000,000 |
Total deficit | $ 400,000 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - USD ($) | May 01, 2022 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | May 31, 2022 | May 05, 2022 |
Subsequent Events (Details) [Line Items] | ||||||
Term of Agreement | 1 year | |||||
Payments to investors | $ 10,000 | |||||
Total restricted stock issues | $ 80,000 | $ 20,000 | $ 20,000 | $ 20,000 | $ 20,000 | |
Stockholder loan | $ 150,000 |