| Significant Accounting Policies | Note
2 - Significant Accounting Policies Basis
of Presentation The
condensed 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 United States Securities
and Exchange Commission ("SEC"). The Company has a fiscal year with a June 30 year end. In the opinion of management, the
financial statements of the Company as of September 30, 2019 and for the three months ended September 30, 2019 and 2018 include
all adjustments and accruals, consisting only of normal, recurring accrual adjustments, which are necessary for a fair presentation
of the results for the interim periods. These interim results are not necessarily indicative of results for a full year. Certain
information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed
in or omitted from this report pursuant to the rules and regulations of the SEC. These financial statements should be read together
with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the
year ended June 30, 2019. Principles
of Consolidation The
condensed 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 condensed 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 whereby 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
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,
savings, and investment accounts) that was insured by the FDIC at September 30, 2019 was $250,000. Property
and Equipment Property
and equipment are recorded at cost. The straight-line method is used for computing depreciation and amortization. Assets are depreciated
over their estimated useful lives. 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. Capitalized software is amortized over three years, which is the expected useful life
of the software. The Company recognized amortization expense of approximately $91,378 for the three month period ended September
30, 2019. The Company did not recognize any amortization expense for the three month period ended September 30, 2018. Revenue
Recognition The Company generates its revenue
from the licensing of its student learning software to universities within the United States of America. The software includes
a platform that tightly integrates technology and services to attract, enroll, educate, and support students for certain classes
offered by the universities. These licenses generally have three- to six-year terms. The Company transfers its software and support
to its customers over a period of time and its customers consume and receive benefits from the Company's software and support
over the related contract period. The
Company's has determined that its contracts contain one performance obligation and, as such, recognizes revenue on a per
student basis over the term of the contract. For the three-month period ended
September 30, 2019, there were no receivables or deferred revenue recorded, nor were there balances as of June 30, 2019. Additionally,
there were no contract assets recorded at September 30, 2019. Income
Taxes In
calculating the provision for interim income taxes, in accordance with Accounting Standards Codification (ASC) 740, Income Taxes,
we apply an estimated annual effective tax rate to year-to-date ordinary income. At the end of each interim period, we estimate
the effective tax rate expected to be applicable for the full fiscal year. 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. The
accompanying condensed 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 in the early stages of 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 factors
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 $26,000 and
$58,000 was charged to expense during the three months ended September 30, 2019 and September 30, 2018 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. For the three months ended September 30, 2019, the Company had 1,170,833 and 1,771,192 potentially dilutive shares of
common stock related to common stock options and warrants, respectively, as determined using the if-converted method. For the
three months ended September 30, 2018, the Company had 1,011,917 and 292,114 potentially dilutive shares of common stock related
to common stock options and warrants, as determined using the if-converted method. For all periods presented, 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 these periods. Stock-Based
Payments Financial Accounting Standards Board
("FASB") Accounting Standards Codification ("ASC") Topic 718 "Compensation-Stock Compensation"
requires companies to measure the cost of employee services received in exchange for the award of equity instruments based on the
estimated fair value of the award at the date of grant. The expense is to be recognized over the period during which an employee
is required to provide services in exchange for the award. The Company accounts for shares of common stock and stock options issued
to employees based on the fair value of the stock or stock option, if that value is more reliably measurable than the fair value
of the consideration or services received. The Company accounts for stock options,
warrants, 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 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 remeasures these outstanding options to fair value at each
reporting period. The measurement date for all outstanding restricted shares was settled during the three months ended September
2019. Accordingly, the Company has recorded an expense in the condensed consolidated statements of operations for the remaing
unvested portion of outstanding restricted shares. Upcoming
Accounting Pronouncements In February 2016, the FASB issued
ASU 2016-02, Leases |
