| Significant Accounting Policies | Note
2 - Significant Accounting Policies Basis
of Presentation The
Merger was accounted for as a reverse recapitalization, with Amesite Operating Company considered the acquirer for accounting
purposes. The consolidated financial statements of the Company reflect the historical operations of Amesite Operating Company
before the Merger. The
Company's fiscal year ends June 30. As a result of the change in fiscal year end disclosed in Note 1, the
financial statements presented cover the full twelve months ended June 30, 2019, the six months ended June 30, 2018, and the
period from inception, November 14, 2017, to December 31, 2017. The consolidated financial statements of the Company have
been prepared in accordance with accounting principles generally accepted in the United States of America
("GAAP") and considering the requirements of the Securities and Exchange
Commission ("SEC"). Principles
of Consolidation The
consolidated financial statements of the Company include the accounts of Amesite, Inc. and its wholly owned subsidiary, Amesite
Operating Company. All material intercompany accounts and transactions have been eliminated in consolidation. Use
of Estimates The
preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the
reporting period. Actual results could differ from those estimates. Fair
Value Measurements Accounting
standards require certain assets and liabilities be reported at fair value in the financial statements and provide a framework
for establishing that fair value. The framework for determining fair value is based on a hierarchy that prioritizes the inputs
and valuation techniques used to measure fair value. Fair
values determined by Level 1 inputs use quoted prices in active markets for identical assets or liabilities that the Company has
the ability to access. Fair values determined by Level
2 inputs use other inputs that are observable, either directly or indirectly. These Level 2 inputs include quoted prices for similar
assets and liabilities in active markets and other inputs such as interest rates and yield curves that are observable at commonly
quoted intervals. Level
3 inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity
for the related asset. These Level 3 fair value measurements are based primarily on management's own estimates using pricing
models, discounted cash flow methodologies, or similar techniques. In
instances wherein inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements
in their entirety are categorized based on the lowest level input that is significant to the valuation. The Company's assessment
of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to
each asset or liability. Cash
and Cash Equivalents The
Company considers all investments with an original maturity of three months or less when purchased to be cash equivalents. The
total amount of bank deposits (checking and savings accounts) that was insured by the FDIC at year end was $250,000. Property
and Equipment Property
and equipment are recorded at cost. The straight-line method is used for computing depreciation. Assets are depreciated over their
estimated useful lives (primarily three to seven years). The cost of leasehold improvements is depreciated (amortized) over the
lesser of the length of the related leases or the estimated useful lives of the assets. Costs of maintenance and repairs are charged
to expense when incurred.
Depreciable Life - Years
Leasehold improvements Shorter of estimated lease term or 10 years
Furniture and fixtures 7 years
Computer equipment and software 5 years Capitalized
Software Costs The
Company capitalizes significant costs incurred in the development of software for internal use, including the costs of the software,
materials, consultants, and payroll and payroll related costs for employees incurred in developing internal use computer software
once final selection of the software is made. Costs incurred prior to the final selection of software and costs not qualifying
for capitalization are charged to expense. The Company began amortizing the first generation of its platform on October 1, 2018
over a period of three years and recognized amortization expense of approximately $122,000 for the year ended June 30, 2019. Revenue
Recognition The
Company generates substantially all of its revenue from contractually specified percentage arrangements with its university clients.
The Company's contracts with university clients have initial terms of 3 to 6 years and have a single performance obligation,
as the promises to provide a platform of tightly integrated technology and services that university clients need to attract, enroll,
educate and support students are not distinct within the context of the contracts. The single performance obligation is delivered
as the university clients receive and consume benefits, which occurs ratably over a series of academic terms. The amounts received
from university clients over the terms of the arrangement are variable in nature in that they are dependent upon the number of
students that are enrolled in the program within each academic term. The amounts are allocated to and are recognized ratably over
the related academic term, defined as the period beginning of the first day of classes through the last. Income
Taxes A
current tax liability or asset is recognized for the estimated taxes payable or refundable on tax returns for the year. Deferred
tax liabilities or assets are recognized for the estimated future tax effects of temporary differences between financial reporting
and tax accounting. Deferred
tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets
will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income
in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and
liabilities of a change in tax rates is recognized in the consolidated statement of operations in the period that includes the
enactment date. Risks
and Uncertainties The
Company intends to operate in an industry subject to rapid change. The Company's operations will be subject to significant risk
and uncertainties including financial, operational, technological, and other risks associated with an early stage company, including
the potential risk of business failure. Going Concern The
accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred losses
since inception, is still developing its service platform, and has not completed its efforts to establish a stabilized source
of revenues sufficient to cover costs over an extended period of time. These conditions and events raise substantial doubt about
the Company's ability to continue as a going concern. The Company's ability to continue as a going concern is dependent
on its ability to raise additional capital and implement its business plan. Despite management's ongoing efforts, there
are no assurances that the Company will be successful in this or any of its endeavors or become financially viable. These financial
statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification
of liabilities that might be necessary should the Company be unable to continue as a going concern. Research
and Development Research and development expenditures
are charged to expense as incurred. Research and development expense of approximately $151,000, $39,000, and $17,000 was charged
to expense during the year ended June 30, 2019, the six month period ended June 30, 2018, and the period from inception, November
14, 2017 to December 31, 2017, respectively. Net
Loss per Share Basic net loss per share is computed by dividing net loss available to common shareholders by the weighted
average number of common shares outstanding during the period. Diluted loss per share includes potentially dilutive securities
such as outstanding options and warrants, using various methods such as the treasury stock or modified treasury stock method in
the determination of dilutive shares outstanding during each reporting period. At June 30, 2019 and June 30, 2018, the Company
had 2,863,025 and 1,288,195 potentially dilutive shares of common stock related to common stock options and warrants, respectively,
as determined using the if-converted method. For the year ended June 30, 2019 and the six month period ended June 30, 2018, the
dilutive effect of common stock options and common stock warrants has not been included in the average shares outstanding for the
calculation of net loss per share as the effect would be anti-dilutive as a result of our net losses in this period Stock-Based
Payments Financial
Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 718, Compensation-Stock
Compensation The
Company accounts for stock options and restricted shares of common stock issued to non-employees in accordance with the FASB ASC
Subtopic 505-50 "Equity-Based Payments to Non-Employees". Accordingly, the fair value of the stock compensation issued
to non-employees is based upon the measurement date as determined at the earlier of either a) the date at which a performance
commitment is reached, or b) the date at which the necessary performance to earn the equity instruments is complete. As a measurement
date has not yet been reached for the stock options outstanding held by non-employees, the Company re-measures these outstanding
options to fair value at each reporting period. The measurement date for all outstanding restricted shares may not be reached
until the contractual end of the contract in September 2019. Accordingly, the Company has estimated the fair value of those services
performed through June 30, 2019, and recorded an expense in the consolidated statement of operations. Upcoming
Accounting Pronouncements In
May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition The FASB issued Accounting Standards
Update "ASU" 2016-02, Leases |
