Gryphon Digital Mining (GRYP) 10-K 23 Sep 19 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Jun. 30, 2019	Sep. 20, 2019	Dec. 31, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	Akerna Corp.
Entity Central Index Key	0001755953
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Document Type	10-K
Document Period End Date	Jun. 30, 2019
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2019
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Shell Company	false
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Interactive Data Current	Yes
Entity File Number	333-228220
Entity Incorporation State Country Code	DE
Entity Public Float			$ 0
Entity Common Stock, Shares Outstanding		10,958,656

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Current assets
Cash	$ 21,867,289	$ 1,572,090
Restricted cash	500,000	1,000,311
Accounts receivable, net	1,577,708	254,092
Prepaid expenses and other assets	577,674	191,238
Total current assets	24,522,671	3,017,731
Current liabilities
Accounts payable	1,317,566	550,437
Accrued liabilities	500,550	373,834
Deferred revenue	624,387	469,631
Total current liabilities	2,442,503	1,393,902
Commitments and contingencies (Note 7)
Stockholders' equity:
Preferred stock, par value $0.0001; 5,000,000 shares authorized, none are issued and outstanding at June 30, 2019 and 2018
Common stock, par value $0.0001; 75,000,000 shares authorized, 10,589,746 issued and outstanding at June 30, 2019, and 4,922,650 shares authorized, issued and outstanding at June 30, 2018	1,059	492
Additional paid-in capital	47,325,421	14,563,102
Accumulated deficit	(25,246,312)	(12,939,765)
Total stockholders' equity	22,080,168	1,623,829
Total liabilities and stockholders' equity	$ 24,522,671	$ 3,017,731

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2019	Jun. 30, 2018
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	75,000,000	75,000,000
Common stock, shares issued	10,589,746	4,922,650
Common stock, shares outstanding	10,589,746	4,922,650

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Revenues
Software	$ 8,256,492	$ 8,082,424
Consulting	2,403,797	2,281,836
Other	259,496	112,523
Total revenues	10,919,785	10,476,783
Cost of revenues	4,633,844	4,361,963
Gross profit	6,285,941	6,114,820
Operating expenses
Product development	5,565,097	2,645,093
Selling, general, and administrative	13,136,522	5,932,887
Total operating expenses	18,701,619	8,577,980
Loss from operations	(12,415,678)	(2,463,160)
Other income (expense)
Interest	91,239	5,841
Other	17,892	(30,990)
Total other income (expense)	109,131	(25,149)
Net loss	$ (12,306,547)	$ (2,488,309)
Basic and diluted weighted average common shares outstanding	6,045,382	4,870,950
Basic and diluted net loss per common share	$ (2.04)	$ (0.51)

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity - USD ($)	Common	Additional Paid-In Capital	Accumulated Deficit	Total
Balance at Jun. 30, 2017	$ 478	$ 13,563,116	$ (10,451,456)	$ 3,112,138
Balance, shares at Jun. 30, 2017	4,784,910
Issuance of shares in exchange for cash	$ 14	999,986		1,000,000
Issuance of shares in exchange for cash, shares	137,740
Net loss			(2,488,309)	(2,488,309)
Balance at Jun. 30, 2018	$ 492	14,563,102	(12,939,765)	1,623,829
Balance, shares at Jun. 30, 2018	4,922,650
Issuance of shares in exchange for cash	$ 110	9,999,890		10,000,000
Issuance of shares in exchange for cash, shares	1,099,376
Issuance of shares in connection with reverse merger	$ 388	18,878,387		18,878,775
Issuance of shares in connection with reverse merger, shares	3,880,282
Issuance of shares for compensation in connection with reverse merger	$ 50	3,393,231		3,393,281
Issuance of shares for compensation in connection with reverse merger, shares	498,073
Stock-based compensation		490,830		490,830
Cashless exercise of options	$ 19	(19)
Cashless exercise of options, shares	189,365
Net loss			(12,306,547)	(12,306,547)
Balance at Jun. 30, 2019	$ 1,059	$ 47,325,421	$ (25,246,312)	$ 22,080,168
Balance, shares at Jun. 30, 2019	10,589,746

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities
Net loss	$ (12,306,547)	$ (2,488,309)
Adjustment to reconcile net loss to net cash used in operating activities
Bad debt expense	345,941	169,784
Stock-based compensation expense	3,884,111
Changes in operating assets and liabilities
Accounts receivable	(1,669,557)	(329,013)
Prepaid expenses and other current assets	(351,144)	161,889
Accounts payable	767,129	(555,290)
Accrued liabilities	126,716	(51,603)
Deferred revenue	154,756	(651,339)
Net cash used in operating activities	(9,048,595)	(3,743,881)
Cash flows from investing activities
Cash received in connection with the reverse merger	18,843,483
Net cash provided by investing activities	18,843,483
Cash flows from financing activities
Cash received in connection with issuance of shares	10,000,000	1,000,000
Net cash provided by financing activities	10,000,000	1,000,000
Net increase (decrease) in cash and restricted cash	19,794,888	(2,743,881)
Cash and restricted cash - beginning of period	2,572,401	5,316,282
Cash and restricted cash - end of period	22,367,289	2,572,401
Cash paid for taxes
Cash paid for interest
Supplemental disclosure of non-cash investing and financing activity:
Cashless exercise of options	19
Prepaid expenses received in connection with reverse merger	$ 35,292

Description of Business, Liquid

Description of Business, Liquidity and Capital Resources	12 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business, Liquidity and Capital Resources	Note 1 - Description of Business, Liquidity and Capital Resources Description of Business Akerna Corp. (the "Company" or "Akerna"), through its wholly-owned subsidiary MJ Freeway, LLC ("MJF") is a regulatory compliance and inventory management technology company. The Company's proprietary software platform is adaptable for industries in which interfacing with government regulatory agencies for compliance purposes is required, or where the tracking of organic materials from seed or plant to end products is desired. The Company developed products intended to assist states in monitoring licensed businesses' compliance with state regulations, and to help state-licensed businesses operate in compliance with such law. The Company provides its regulatory software platform, Leaf Data Systems®, to state government regulatory agencies, and its commercial software platform, MJ Platform®, to state-licensed businesses. On October 10, 2018 (as amended on April 17, 2019), MJF entered into a definitive merger agreement (the "Merger Agreement") with MTech Acquisition Corp. ("MTech"), the Company (f/k/a MTech Acquisition Holdings Inc.), MTech Purchaser Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of Akerna ("Purchaser Merger Sub"), MTech Company Merger Sub LLC, a Colorado limited liability company and a wholly-owned subsidiary of Akerna ("Company Merger Sub" and, together with Purchaser Merger Sub, the "Merger Subs", and the Merger Subs collectively with MTech and Akerna, the "Purchaser Parties"), MTech Sponsor LLC, a Florida limited liability company, in the capacity as the representative for the equity holders of Akerna (other than the Sellers) thereunder (the "Purchaser Representative"), and Harold Handelsman, in the capacity as the representative for the Sellers thereunder (the "Seller Representative"). MTech, collectively with Akerna, Purchaser Merger Sub and MTech Company Merger Sub, shall be referred to as "MTech". The Merger Agreement provided for two mergers: (i) the merger of Purchaser Merger Sub with and into MTech, with MTech continuing as the surviving entity (the "Purchaser Merger"), and (ii) the merger of MTech Company Merger Sub with and into the Company, with the Company continuing as the surviving entity (the "Company Merger", and together with the Purchaser Merger, the "Mergers"). On June 17, 2019, the Mergers contemplated by the Merger Agreement were consummated. In connection with the closing of the Mergers, the registrant changed its name from MTech Acquisition Holdings Inc. to Akerna Corp. Upon the closing of the Mergers (Note 4), the outstanding Common Units, Preferred Units, and Profit Interest Units of MJF were exchanged for shares of common stock of Akerna at an exchange ratio of one Unit of MJF to 0.26716 shares of Akerna common stock (the "Exchange Ratio). Except as otherwise noted, all common share amounts and per share amounts have been adjusted to reflect this Exchange Ratio, which was effected upon the Merger. The Mergers have been accounted for as a reverse merger in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The owners and management of MJF have actual or effective voting and operating control of the combined company. In the Merger transaction, MTech is the accounting acquiree and MJF is the accounting acquirer. A reverse recapitalization is equivalent to the issuance of stock by the private operating company for the net monetary assets of the accounting acquiree accompanied by a recapitalization with accounting similar to that resulting from a reverse acquisition, except that no goodwill or intangible assets are recorded. The accompanying financial statements and related notes reflect the historical results of MJF prior to the merger and of the combined company following the Mergers, and do not include the historical results of MTech prior to the completion of the Mergers. Liquidity and Capital Resources Since its inception, the Company has incurred recurring operating losses, used cash from operations, and relied on capital raising transactions to continue ongoing operations. However, based on the funds the Company has available as of the date these financial statements are issued primarily as a result of the business combination (Note 4), the Company believes that it has sufficient capital to fund its anticipated operating expenses for at least next twelve months from the date these financial statements are issued.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2 - Summary of Significant Accounting Policies Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP and pursuant to the accounting and disclosure rules and regulations of the Securities and Exchange Commission ("SEC"). Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All intercompany transactions and balances have been eliminated in consolidation. Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates for the years ended June 30, 2019 and 2018 were the Company's allowance for doubtful accounts, the estimated average customer life used in the calculation of the deferral and recognition of implementation fees earned from certain customers, the estimated useful lives of long-lived assets, stock-based compensation and the deferred tax asset valuation allowance. Actual results could differ from those estimates. Cash and cash equivalents The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. There were no cash equivalents for the years ended June 30, 2019 and 2018. The Company continually monitors its positions with, and the credit quality of, the financial institutions with which it invests. As of the balance sheet date, and periodically throughout the year, the Company has maintained balances in various operating accounts in excess of federally insured limits. At June 30, 2019, approximately $22 million of the Company's cash balances were uninsured. The Company has not experienced any losses on such accounts. Restricted Cash Restricted cash serves as collateral for the Company's letter-of-credit (See Note 7). Prepaid Expenses Prepaid expenses consist primarily of third-party technology and software used by in the Company in its day-to-day operations and professional services expenses paid in advance. (See Note 3). Accounts Receivable, Net The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts. The Company's estimate is based on historical collection experience and a review of the current status of trade accounts receivable. It is reasonably possible that the Company's estimate of the allowance for doubtful accounts will change and that losses ultimately incurred could differ materially from the amounts estimated in determining the allowance. The allowance for doubtful accounts was $190,088 and $39,571 as of June 30, 2019 and 2018, respectively. Concentrations of Credit Risk The Company grants credit in the normal course of business to customers in the United States. The Company periodically performs credit analysis and monitors the financial condition of its customers to reduce credit risk. During the year ended June 30, 2019, one customer accounted for 30% of total revenues. At June 30, 2019, two customers accounted for 33% and 24% of net accounts receivable, respectively. During the year ended June 30, 2018, the same customer accounted for 37% of total revenues. At June 30, 2018, the same two customers accounted for 55% and 11% of net accounts receivable, respectively. Property and Equipment Property and equipment are stated at cost. Depreciation is provided utilizing the straight-line method over the estimated useful lives for owned assets, ranging from five to seven years, and the shorter of the estimated economic life or related lease terms for leasehold improvements. Repairs and maintenance costs that do not improve the service potential or extend the economic life are expensed as incurred. The Company's purchases of property and equipment have historically been immaterial. Fair Value of Financial Instruments The carrying amounts of financial instruments, including cash, restricted cash, accounts receivable, prepaid expenses, accounts payable and accrued liabilities approximated fair value as of June 30, 2019 and 2018 because of the relatively short term nature of these instruments. The Company accounts for fair value measurements in accordance with Accounting Standards Codification ("ASC") Topic No. 820, Fair Value Measurements and Disclosures ASC Topic 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC Topic 820 are described below: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). Software Development Costs The Company accounts for costs incurred in the development of computer software in accordance with ASC Subtopic 350-40, Intangibles - Goodwill and Other - Internal-Use Software. Revenue Recognition The Company recognizes revenue only when all of the following criteria have been met: persuasive evidence of an arrangement exists, delivery has occurred or services have been performed, the fee for the arrangement is fixed or determinable, and collectability is reasonable assured. The Company's software-as-a-service fees are earned through arrangements in which customers pay the Company a recurring subscription fee based upon the terms of their respective contracts. The Company's software revenues generated from government customers totaled $4,251,263 and $4,470,310 of total revenues during the years ended June 30, 2019 and 2018, respectively (See Note 2, "Concentration of Credit Risk"). Total costs of government revenues incurred by the Company, which are included in cost of revenues on the statements of operations, were $2,150,062 and $2,670,319 during the years ended June 30, 2019 and 2018, respectively. The Company also offers various software consulting services to its customers, including implementation services, business planning, support, and other customer services. From time to time, the Company purchases equipment for resale to customers. Such equipment is generally drop-shipped to the Company's customers. The Company recognizes revenue as the services are performed or products are delivered, or in the case of up-front implementation fees, over the longer of the contract term or estimated customer life. In most arrangements, the Company bills the customer prior to performing services, which requires the Company to record deferred revenue on the accompanying balance sheets. Reclassifications Certain prior year financial statement amounts have been reclassified for consistency with the current year presentation. More specifically, $319,798 has been reclassified from selling, general and administrative expenses to cost of revenues. These reclassifications had no effect on the reported results of operations. Income Taxes Income taxes are accounted for using the asset and liability method which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of other assets and liabilities. The Company provides for income taxes at the current and future enacted tax rates and laws applicable in each taxing jurisdiction. The Company uses a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return and disclosures regarding uncertainties in income tax positions. The Company recognizes interest and penalties related to income tax matters in selling, general, and administrative expense in the consolidated statement of operations. The Company recognizes deferred tax assets to the extent that its assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, and results of recent operations. If the Company determines that it would be able to realize its deferred tax assets in the future in excess of their net recorded amount, it will make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. Stock-Based Compensation The Company accounts for grants of share-based awards to employees in accordance with ASC 718, Compensation—Stock Compensation Equity Segments The Company's chief operating decision maker reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance and information for different revenue streams is not evaluated separately. As such, the Company's operations constitute a single operating segment and one reportable segment. Recently Issued Accounting Pronouncements ASU 2014-09, Revenue from Contracts with Customers (Topic 606), Revenue Recognition (Topic 605) In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU No. 2016-02, Leases In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments In June 2018, the FASB issued ASU No. 2018-07, Compensation- Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting In August 2018, the FASB issued ASU No. 2018-15 , Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customers Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. This ASU provides supplemental guidance and clarification to ASU No. 2016-13 and must be adopted concurrently with the adoption of ASU No. 2016-13. The Company has adopted the new standard effective April, 2019. The adoption of this standard had no material impact on the Company's consolidated financial statements.

Balance Sheet Disclosures

Balance Sheet Disclosures	12 Months Ended
	Jun. 30, 2019
Balance Sheet Disclosures [Abstract]
Balance Sheet Disclosures	Note 3 - Balance Sheet Disclosures Prepaid expenses consist of the following: June 30, June 30, 2019 2018 Software and technology $ 237,930 $ 115,516 Professional services 169,804 47,626 Insurance 159,940 18,096 Deposit 10,000 10,000 $ 577,674 $ 191,238 Accrued liabilities consist of the following: June 30, June 30, 2019 2018 Professional fees $ 49,205 $ 24,404 Sales taxes 36,358 66,347 Compensation 354,724 251,393 Leaf Data Systems contractors 19,557 - Other 40,706 31,690 $ 500,550 $ 373,834 The accrued compensation as of June 30, 2018 includes $122,000 of accrued bonus earned by the Company’s Chief Executive Officer and a member of the Company’s Board of Managers during the year ended June 30, 2018 and such bonus is calculated based on the Company’s operational results. The accrued compensation as of June 30, 2019, includes approximately $215,000 of accrued bonus earned by the Company’s Chief Executive Officer.

Reverse Merger and Private Plac

Reverse Merger and Private Placement	12 Months Ended
	Jun. 30, 2019
Reverse Merger and Private Placement [Abstract]
Reverse Merger and Private Placement	Note 4 - Reverse Merger and Private Placement Reverse Merger As noted above, on October 10, 2018, the Company entered into the Merger Agreement (Note 1). On January 18, 2019, the parties to the Merger Agreement and certain of the holders of MJF's outstanding preferred and common units entered into an allocation agreement which served to modify the allocation of the merger consideration prescribed by the Merger Agreement. Under the terms of the allocation agreement, if the merger closes, additional shares comprising the merger consideration shall be reallocated to holders of the profit interest units of MJF, which additional shares shall be funded from shares otherwise issuable to such holders of MJF's preferred and common units. On April 17, 2019, the Merger Agreement was amended to (i) increase the size of the MTech board of directors following the closing of the merger from seven (7) to eight (8) directors, (ii) increase the number of directors appointed prior to the Closing by MJF from four (4) to five (5) directors (which additional director will qualify as an independent director under Nasdaq rules) and (iii) revise the classification of directors so that the Class B directors will include two (2) MJF directors and one (1) MTech director. On June 17, 2019, MTech and MJF consummated the Mergers contemplated by the Merger Agreement. In connection with the closing of the Mergers, the registrant changed its name from MTech Acquisition Holdings Inc. to Akerna Corp ("Akerna"). The Merger Consideration was paid through the issuance of 6,520,099 shares of MTech common stock (the "Consideration Shares") to the former holders of MJF common units, preferred units, and profit interest units at a price per share equal to $10.16 per share. Of the total amount of Akerna shares issued in the merger, 283,010 fully vested shares of Akerna common stock and 215,063 unvested shares of Akerna common stock were allocated to the former holders of MJF profit interest units. Notwithstanding the foregoing, 652,010 of the total issuable shares (the "Escrow Shares") will be held in an escrow account (the "Escrow Account") to cover any adjustments to the Merger Consideration or claims for indemnification pursuant to the Merger Agreement until ninety (90) days after Akerna files its Annual Report on Form 10-K with the Commission for the fiscal year ending June 30, 2019, with the exception of Escrow Shares held to satisfy then pending claims which shall remain in the Escrow Account until the claims are resolved. As disclosed above, (a) 283,011 fully vested shares of common stock were allocated to the former holders of MJF profit interest units, resulting in an immediate one-time charge of approximately $3.4 million to be recorded by MJF on June 17, 2019 and (b) 215,063 unvested shares of common stock were allocated to the holders of MJF profit interest units, of which approximately $2.1 million of compensation expense related to such profit interest units will be ratably recognized over an estimated remaining vesting period of 3 years. The calculation of the amount of the current and future expenses to be taken by MJF was based on the closing price of the Akerna common shares on the date of the Mergers. In connection with the Merger Agreement, all recipients of the Consideration Shares executed a lock-up agreement (the "Lock-up Agreemen t Upon the Closing of the Merger, Akerna's certificate of incorporation was amended and restated to have one single class of common stock and 75,000,000 authorized shares of common stock, par value $0.0001 per share. Akerna also had 5,000,000 authorized shares of preferred stock. MTech also entered into a series of securities purchase agreements with certain investors (the "PIPE Investors"), whereby MTech issued 901,074 shares of Class A common stock (the "Private Placement Shares") for an aggregate purchase price of $9.2 million (the "Private Placement"), which closed simultaneously with the consummation of the Mergers. Upon the closing of the Mergers, the Private Placement Shares were automatically converted into shares of Akerna common stock on a one-for-one basis. Each PIPE Investor was also granted an option for a period of sixty days to purchase additional shares of Akerna common stock at a price of $10.21 per share. None of these options were exercised within sixty days. The proceeds received from the Mergers totaled approximately $18 million, which is net of $4.4 million of underwriting discounts and commissions and other expenses related to the Mergers.

Loss Per Share

Loss Per Share	12 Months Ended
	Jun. 30, 2019
Earnings Per Share [Abstract]
Loss Per Share	Note 5 - Loss Per Share Basic net loss per common share is calculated based on the weighted-average number of common shares outstanding in accordance with ASC Topic 260, Earnings per Share. Diluted net loss per common share is calculated based on the weighted-average number of common shares outstanding plus the effect of potentially dilutive common shares. When the Company reports a net loss, the calculation of diluted net loss per common share excludes potential common shares as the effect would be anti-dilutive. For the year ended June 30, 2019, 6,398,178 potentially dilutive securities have been excluded from the computation of diluted weighted average shares outstanding because the effect would be anti-dilutive. Of the total securities excluded, 6,183,115 were related to warrants issued (Note 6) and 215,063 were related to the unvested Restricted Shares. For the year ended June 30, 2018, 5,993,750 potentially dilutive securities all related to warrants issued have been excluded from the computation of diluted weighted average shares outstanding because the effect would be anti-dilutive.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Jun. 30, 2019
Equity [Abstract]
Stockholders' Equity	Note 6 - Stockholders' Equity Common and preferred stock In conjunction with the Mergers in June 2019, Akerna's certificate of incorporation was amended and restated to have one single class of common stock and 75,000,000 authorized shares of common stock, par value $0.0001 per share. Akerna will also have 5,000,000 authorized shares of preferred stock, $0.0001 par value per share, of which none are issued and outstanding. The holders of common stock are entitled to one vote per share on all matters submitted to a vote of stockholders of the Company. Subject to the prior rights of all classes or series of stock at the time outstanding having prior rights as to dividends or other distributions, all stockholders are entitled to share equally in dividends, if any, as may be declared from time to time by the Board of Directors out of funds legally available. Subject to the prior rights of creditors of the Corporation and the holders of all classes or series of stock at the time outstanding having prior rights as to distributions upon liquidation, dissolution or winding up of the Corporation, in the event of liquidation, the holders of Common Stock are entitled to share ratably in all assets remaining after payment of all liabilities. The stockholders do not have cumulative, preemptive rights, or subscription rights. Issuances for Cash In November 2017, MJF issued 515,570 Series B Preferred Units (137,740 shares of common stock after retroactively applying the exchange ratio) for cash consideration of $1,000,000. In August 2018, MJF issued 4,115,042 Series C Preferred Units (1,099,376 shares of common stock after retroactively applying the exchange ratio) for cash consideration of $10,000,000. Following the Mergers, all the Units were converted into Akerna's common stock. Restricted Shares Prior to the Mergers, MJF had Profit Interest Incentive Plan (the "Profits Interest Plan") in place whereby it could grant PIUs to employees or consultants and other independent advisors of the Company. PIUs granted under the Profits Interest Plan would generally vest once a year over four years commencing on the date granted, or based on specified performance targets. MJF had the right, but not the obligation, to repurchase vested PIUs from holders upon their termination of employment. Unvested PIUs were to be forfeited upon termination of employment. If the holder was terminated for cause, as defined, all vested and unvested units would be forfeited. PIUs repurchased or canceled or forfeited by the award recipient were available for reissuance. Upon completion of the Mergers, the non-vested PIUs were exchanged for and became subject to restricted stock agreements ("Restricted Shares") with varying vesting terms that reflect the vesting conditions application to equity interests of the applicable MJF equity holders at the time of the merger. The management assessed whether its PIUs represented share-based payments within the scope of ASC Topic 718 or were more akin to a profit-sharing compensation arrangement. The management determined PIUs were more akin to a profit-sharing compensation arrangement. The management determined PIUs only had value upon a defined liquidating event. Accordingly, no value had been accrued for the PIUs until the business combination occurred on June 17, 2019, which met the definition of a liquidating event. As a result, MJF recorded a one-time charge of approximately $3.4 million, which represented the charge associated with fully vested shares of common stock issued in exchange for the PIUs. During the year ended June 30, 2018, 181,000 Restricted Shares were granted (677,500 PIUs before retroactively applying the exchange ratio), 64,785 Restricted Shares were forfeited (242,500 PIUs before retroactively applying the exchange ratio), and 75,406 Restricted Shares vested (282,250 PIUs before retroactively applying the exchange ratio). At June 30, 2018, there were 294,944 Restricted Shares outstanding (1,104,000 PIUs before retroactively applying the exchange ratio). During the year ended June 30, 2019, additional 107,618 Restricted Shares were granted (402,824 PIUs before retroactively applying the exchange ratio), 68,794 Restricted Shares were forfeited (257,500 PIUs before retroactively applying the exchange ratio), and 118,705 Restricted Shares vested (444,324 PIUs before retroactively applying the exchange ratio). At June 30, 2019, there were 215,063 unvested Restricted Shares outstanding (805,000 PIUs before retroactively applying the exchange ratio). For the year ended June 30, 2019, stock-based compensation expenses related to the ratable amortization of the unvested Restricted Shares was $0.5 million. Approximately, $2.1 million of total unrecognized costs related to Restricted Shares will be ratably recognized over an estimated remaining vesting period of 3 years. Warrants In connection with MTech's initial public offering, the Company sold 5,750,000 units at a purchase price of $10.00 per unit, inclusive of 750,000 units sold to the underwriters on February 8, 2018 upon the underwriters' election to fully exercise their over-allotment option. Each unit consisted of one share of MTech's common stock and one warrant ("Public Warrant"). Each Public Warrant entitled the holder to purchase one share of MTech's common stock at an exercise price of $11.50. Upon the Mergers, the Public Warrants were converted to those of Akerna at the exchange ratio of one-for-one. Simultaneously with MTech's initial public offering, an affiliated party purchased an aggregate of 225,000 units at $10.00 per unit, for an aggregate purchase price of $2,250,000. On February 8, 2018, the MTech consummated the sale of an additional 18,750 private units at a price of $10.00 per unit generating gross proceeds of $187,500. Each unit consists of one share of MTech's common stock and one warrant ("Private Warrants"). Each Private Warrant was exercisable to purchase one share of MTech's common stock at an exercise price of $11.50. Upon the Mergers, the Private Warrants were converted to those of Akerna at the exchange ratio of one-for-one. A summary of the status of common stock warrants at June 30, 2019 and the changes during the two years then ended, is presented in the following table: Shares under warrants Weighted average exercise price Weighted average remaining life Aggregate intrinsic value Outstanding at July 1, 2017 - Issued 5,993,750 $ 11.50 Exercised - Expired/cancelled - Outstanding at June 30, 2018 5,993,750 11.50 4.61 Issued 189,365 11.50 Exercised - Expired/cancelled - Outstanding at June 30, 2019 6,183,115 $ 11.50 3.72 $ 2,473,000 Unit Purchase Option and Other Rights In connection with MTech's initial public offering, there were also 250,000 options sold to an affiliate party to purchase up to 250,000 units exercisable at $10.00 per unit ("Option Shares"). The unit purchase option could be exercised for cash or on a cashless basis, at the holder's option. Each unit consisted of one share of Company's common stock, par value $0.0001 per share, and one warrant entitling the holder to purchase one share of Company's common stock. The unit purchase option was exercised on a cashless basis into 189,365 shares of common stock and 189,365 warrants, which were outstanding as of June 30, 2019. In connection with the Private Placement, the Company also provided each investor the ability to purchase additional shares of Akerna common stock at a price of $10.21 per share, up to their pro rata share of the 901,074 Private Placement Shares purchased. No investor exercised this right during the year ended June 30, 2019, which expired subsequently. The aggregate intrinsic value of the rights as of June 30, 2019, was $1,522,815. 2019 Incentive plan On June 17, 2019, the MTech stockholders considered and approved the 2019 Long Term Incentive Plan (the "Equity Incentive Plan") and reserved 1,040,038 shares of common stock for issuance thereunder. The Equity Incentive Plan was previously approved, subject to stockholder approval, by the board of directors of Akerna on January 23, 2019. The Equity Incentive Plan became effective immediately upon the Closing of the Mergers.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 7 - Commitments and Contingencies Operating Leases The Company leases facilities, equipment, and vehicles under non-cancelable operating leases. Rent expense for the years ended June 30, 2019 and 2018 was $151,458 and $140,946, respectively. Future minimum lease payments under these leases are approximately $96,000 for the year ending June 30, 2020. Letter-of-Credit As of June 30, 2018, the Company had a standby letter-of-credit with a bank in the amount of $1,000,000, which was classified as restricted cash on the balance sheets. The beneficiary of the letter-of-credit is an insurance company. Litigation From time to time, the Company may be involved in litigation relating to claims arising out of its operations in the normal course of business. The Company will accrue a liability for such matters when it is probable that a liability has been incurred and the amount can be reasonably estimated. When only a range of possible loss can be established, the most probable amount in the range is accrued. If no amount within this range is a better estimate than any other amount within the range, the minimum amount in the range is accrued. The accrual for a litigation loss contingency might include, for example, estimates of potential damages, outside legal fees and other directly related costs expected to be incurred. As of June 30, 2019 and 2018, respectively, there were no legal proceedings requiring recognition or disclosure in the financial statements. Employment Agreement In connection with the consummation of the Mergers, Ms. Jessica Billingsley and Akerna entered into an employment agreement, dated June 17, 2019 (the "Billingsley Employment Agreement"). Under the terms of the Billingsley Employment Agreement, Ms. Billingsley serves at the Chief Executive Officer of Akerna, at will, and must devote substantially all of her working time, skill and attention to her position and to the business and interests of Akerna (except for customary exclusions). Akerna will pay Ms. Billingsley an annual base salary in the amount of $250,000. The base salary subject to (i) review at least annually by board of directors of Akerna for increase, but not decrease, and (ii) automatic increase by an amount equal to $50,000 from its then current level on the date upon which Akerna's aggregate, gross consolidated trailing twelve month (TTM) revenue equals the product of (x) two multiplied by (y) Akerna's aggregate, gross consolidated trailing twelve month (TTM) revenue as the Closing. Within 10 days of the Closing, Akerna also paid to Ms. Billingsley a single lump sum of $95,000. Ms. Billingsley will be eligible for an annual bonus (the "Annual Bonus") with respect to each fiscal year ending during her employment. Her target annual cash bonus shall be in the amount of one hundred percent (100%) of her base salary (the "Target Bonus") with the opportunity to earn greater than the Target Bonus upon achievement of above target performance. The amount of the Annual Bonus shall be determined by the board of directors of Akerna on the basis of fulfillment of the objective performance criteria established in its reasonable discretion. The performance criteria for any particular fiscal year shall be set no later than 90 days after the commencement of the relevant fiscal year. As of June 30, 2019, Ms. Billingsley's bonus accrual was approximately $215,000. Ms. Billingsley is entitled to participate in annual equity awards and employee benefits. She is indemnified by Akerna to for any and all expenses (including advancement and payment of attorneys' fees) and losses arising out of or relating to any of her actual or alleged acts, omissions, negligence or active or passive wrongdoing, including, the advancement of expenses she incurs. The foregoing indemnification is in addition to the indemnification provided to her by Akerna pursuant to her Indemnification Agreement. The Billingsley Employment Agreement also contains noncompetition and non-solicitation provisions that apply through her employment and for a term of 1 year thereafter, and which are in addition to the noncompetition and non-solicitation provisions prescribed under the Non-Competition Agreements below. Employee Benefit Plan The Company has a 401(k) Plan (the "Plan") to provide retirement benefits for its employees. Employees may contribute up to 100% of their annual compensation to the Plan, limited to a maximum annual amount as updated annually by the IRS. The Company does not offer a match of employee contributions nor any discretionary contributions. Insurance Claim In March 2018, the Company received approximately $940,000 in proceeds, net of legal fees, from an insurance claim related to business interruption, which was included as a component of selling, general, and administrative operating expenses on the statement of operations.

Income Taxes

Income Taxes	12 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Note 8 - Income Taxes Akerna Corporation is the sole owner of MJF as of June 17, 2019, which is a disregarded entity for federal income taxes. Prior to June 17, 2019 MJF was treated as a partnership for U.S income tax purposes. Accordingly, prior to the business combination, taxable income and losses of the Company were reported on the income tax returns of MJF's members. Therefore, no income tax provision is provided prior to June 17, 2019. The following table sets forth the expense or (benefit) for income taxes: June 30, June 30, 2019 2018 Income tax expense Current income taxes U.S. federal $ - $ - U.S. state - - Total current income taxes $ - $ - June 30, June 30, 2019 2018 Deferred income taxes U.S. federal $ - $ - U.S. state - - Total deferred income tax benefit $ - $ - The following table sets forth reconciliations of the statutory federal income tax rate to actual rates based on income or loss before income taxes: June 30, June 30, 2019 2018 Income tax expense and rate attributable to: Federal $ (2,509,246 ) $ - State, net of federal benefit (13,452 ) - Restricted stock awards 816,505 - Changes in valuation allowance 85,455 - Losses from flow-through entity not subject to tax 1,640,066 - Other adjustments (19,328 ) - Effective income tax expense and rate $ - $ - June 30, June 30, 2019 2018 Noncurrent deferred tax assets: Allowance for doubtful accounts $ 22,226 $ - Charitable contribution carryforward 147 - Federal and state net operating loss 63,082 - Total deferred tax assets $ 85,455 $ - Valuation allowance (85,455 ) - Deferred tax assets after valuation allowance $ - $ - During the year ended June 30, 2019, valuation allowances on deferred tax assets that are not anticipated to be realized increased by $85,455. Deferred tax valuation allowances are primarily the result of uncertainties regarding the future realization of recorded tax benefits on tax loss. The measurement of deferred tax assets is reduced by a valuation allowance, if based upon available evidence, it is more likely than not that the deferred tax assets will not be realized. The Company has evaluated the realizability of its deferred tax assets in each jurisdiction by assessing the adequacy of expected taxable income, including the reversal of existing temporary differences, historical and projected operating results and th e availability of prudent and feasible tax planning strategies. Based on this analysis, the Company has determined that the valuation allowances recorded in the period presented are appropriate. The Company's aggregate U.S. federal tax carryforwards for net operating losses which will not expire were $239,281. The Company recorded deferred tax assets related to U.S. state tax net operating loss carryforwards, which expire at various dates beginning in 2039. The Company is not currently under examination for the major jurisdictions where it conducts business as of June 30, 2019. The management does not believe that there are significant uncertain tax positions in 2019. There are no interest and penalties related to uncertain tax positions in 2019.

Revisions of Financial Statemen

Revisions of Financial Statements for the Fiscal Quarters during Fiscal Years 2019 and 2018	12 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Revisions of Financial Statements for the Fiscal Quarters during Fiscal Years 2019 and 2018	Note 9 – Revisions of Financial Statements for the Fiscal Quarters during Fiscal Years 2019 and 2018 During the course of preparing the annual report on Form 10-K for the year ended June 30, 2019, the Company identified certain costs of revenue related to consulting services previously being recorded in operating expenses, which resulted in the overstatement of the gross profit for each of the quarters during the fiscal years ended June 30, 2019 and 2018, respectively. These reclassifications had no effect on the reported net losses. Fiscal 2019 Fiscal year 2018 As reported Adjustment As revised As reported Adjustment As revised Quarter Ended September 30 Total revenue $ 2,371,900 $ 2,371,900 $ 2,672,502 $ 2,672,502 Cost of revenues 956,123 107,012 1,063,135 1,283,246 79,949 1,363,195 Gross profit 1,415,777 (107,012 ) 1,308,765 1,389,256 (79,949 ) 1,309,307 Operating expenses 3,055,976 (107,012 ) 2,948,964 3,038,013 (79,949 ) 2,958,064 Net less (1,623,182 ) (1,623,182 ) (1,664,706 ) (1,664,706 ) Net loss per share (0.15 ) (0.15 ) (0.21 ) (0.21 ) Quarter Ended December 31 Total revenue 2,598,079 2,598,079 2,859,582 2,859,582 Cost of revenues 1,198,911 122,084 1,320,995 1,068,828 79,949 1,148,777 Gross profit 1,399168 (122,084 ) 1,277,084 1,790,754 (79,949 ) 1,710,805 Operating expenses 3,826,539 (122,084 ) 3,704,455 2,770,833 (79,949 ) 2,690,884 Net loss (2,370,204 ) (2,370,204 ) (992,463 ) (992,463 ) Net loss per share (0.19 ) (0.19 ) (0.12 ) (0.12 ) Quarter Ended March 31 Total revenue 2,327,880 2,327,880 2,315,635 2,315,635 Cost of revenues 1,042,403 124,079 1,166,482 737,762 79,949 817,711 Gross profit 1,285,477 (124,079 ) 1,161,398 1,577,873 (79,949 ) 1,497,924 Operating expenses 3,788,644 (124,079 ) 3,664,565 1,204,242 (79,949 ) 1,124,293 Net loss (2,490,103 ) (2,490,103 ) (364,227 ) (364,227 ) Net loss per share (0.20 ) (0.20 ) (0.04 ) (0.04 ) In accordance with SEC Staff Accounting Bulletin No 108, the Company has evaluated these errors, based on an analysis of quantitative and qualitative factors, as to whether it was material to the condensed statements of operations for the three months ended March 31, 2019 and 2018, December 31, 2018 and 2017, and September 30, 2018 and 2017, respectively, and if amendments of previously filed financial statements with the SEC are required. The Company has determined that quantitatively and qualitatively, the errors have no material impact to the condensed statement of operations for these periods.

Subsequent Events

Subsequent Events	12 Months Ended
	Jun. 30, 2019
Subsequent Events [Abstract]
Subsequent Events	Note 10 - Subsequent Events Subsequent to June 30, 2019, the Company was awarded a contract with the state of Utah following the submission of a response to a request for proposal for an interoperable medical cannabis inventory control and electronic verification system. In July 2019, the Company hired Mr. Scott Sozio, at will, to serve as the Company's Head of Corporate Development. Mr. Sozio is the former Chief Executive Officer of MTech Acquisition Corp., is a current director of Akerna, and beneficially owns common stock of the Company. Mr. Sozio will receive an annual base salary of $150,000, which is to be credited against certain variable bonus compensation to be paid in a combination of cash and equity pursuant to the Equity Incentive Plan once every twelve month period. The terms of such bonus payment are still being negotiated between the Company and Mr. Sozio. Subsequent to June 30, 2019, 368,910 warrants were exercised at the price of $11.50 per warrant for the total proceeds of $4,242,465.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP and pursuant to the accounting and disclosure rules and regulations of the Securities and Exchange Commission (“SEC”).
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All intercompany transactions and balances have been eliminated in consolidation.
Use of estimates	Use of estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates for the years ended June 30, 2019 and 2018 were the Company's allowance for doubtful accounts, the estimated average customer life used in the calculation of the deferral and recognition of implementation fees earned from certain customers, the estimated useful lives of long-lived assets, stock-based compensation and the deferred tax asset valuation allowance. Actual results could differ from those estimates.
Cash and cash equivalents	Cash and cash equivalents The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. There were no cash equivalents for the years ended June 30, 2019 and 2018. The Company continually monitors its positions with, and the credit quality of, the financial institutions with which it invests. As of the balance sheet date, and periodically throughout the year, the Company has maintained balances in various operating accounts in excess of federally insured limits. At June 30, 2019, approximately $22 million of the Company’s cash balances were uninsured. The Company has not experienced any losses on such accounts.
Restricted Cash	Restricted Cash Restricted cash serves as collateral for the Company's letter-of-credit (See Note 7).
Prepaid Expenses	Prepaid Expenses Prepaid expenses consist primarily of third-party technology and software used by in the Company in its day-to-day operations and professional services expenses paid in advance. (See Note 3).
Accounts Receivable, Net	Accounts Receivable, Net The Company provides an allowance for doubtful accounts equal to the estimated uncollectible amounts. The Company's estimate is based on historical collection experience and a review of the current status of trade accounts receivable. It is reasonably possible that the Company's estimate of the allowance for doubtful accounts will change and that losses ultimately incurred could differ materially from the amounts estimated in determining the allowance. The allowance for doubtful accounts was $190,088 and $39,571 as of June 30, 2019 and 2018, respectively.
Concentrations of Credit Risk	Concentrations of Credit Risk The Company grants credit in the normal course of business to customers in the United States. The Company periodically performs credit analysis and monitors the financial condition of its customers to reduce credit risk. During the year ended June 30, 2019, one customer accounted for 30% of total revenues. At June 30, 2019, two customers accounted for 33% and 24% of net accounts receivable, respectively. During the year ended June 30, 2018, the same customer accounted for 37% of total revenues. At June 30, 2018, the same two customers accounted for 55% and 11% of net accounts receivable, respectively.
Property and Equipment	Property and Equipment Property and equipment are stated at cost. Depreciation is provided utilizing the straight-line method over the estimated useful lives for owned assets, ranging from five to seven years, and the shorter of the estimated economic life or related lease terms for leasehold improvements. Repairs and maintenance costs that do not improve the service potential or extend the economic life are expensed as incurred. The Company's purchases of property and equipment have historically been immaterial.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying amounts of financial instruments, including cash, restricted cash, accounts receivable, prepaid expenses, accounts payable and accrued liabilities approximated fair value as of June 30, 2019 and 2018 because of the relatively short term nature of these instruments. The Company accounts for fair value measurements in accordance with Accounting Standards Codification ("ASC") Topic No. 820, Fair Value Measurements and Disclosures ASC Topic 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC Topic 820 are described below: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2: Applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).
Software Development Costs	Software Development Costs The Company accounts for costs incurred in the development of computer software in accordance with ASC Subtopic 350-40, Intangibles - Goodwill and Other - Internal-Use Software.
Revenue Recognition	Revenue Recognition The Company recognizes revenue only when all of the following criteria have been met: persuasive evidence of an arrangement exists, delivery has occurred or services have been performed, the fee for the arrangement is fixed or determinable, and collectability is reasonable assured. The Company’s software-as-a-service fees are earned through arrangements in which customers pay the Company a recurring subscription fee based upon the terms of their respective contracts. The Company’s software revenues generated from government customers totaled $4,251,263 and $4,470,310 of total revenues during the years ended June 30, 2019 and 2018, respectively (See Note 2, “Concentration of Credit Risk”). Total costs of government revenues incurred by the Company, which are included in cost of revenues on the statements of operations, were $2,150,062 and $2,670,319 during the years ended June 30, 2019 and 2018, respectively. The Company also offers various software consulting services to its customers, including implementation services, business planning, support, and other customer services. From time to time, the Company purchases equipment for resale to customers. Such equipment is generally drop-shipped to the Company’s customers. The Company recognizes revenue as the services are performed or products are delivered, or in the case of up-front implementation fees, over the longer of the contract term or estimated customer life. In most arrangements, the Company bills the customer prior to performing services, which requires the Company to record deferred revenue on the accompanying balance sheets.
Reclassifications	Reclassifications Certain prior year financial statement amounts have been reclassified for consistency with the current year presentation. More specifically, $319,798 has been reclassified from selling, general and administrative expenses to cost of revenues. These reclassifications had no effect on the reported results of operations.
Income Taxes	Income Taxes Income taxes are accounted for using the asset and liability method which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of other assets and liabilities. The Company provides for income taxes at the current and future enacted tax rates and laws applicable in each taxing jurisdiction. The Company uses a two-step approach for recognizing and measuring tax benefits taken or expected to be taken in a tax return and disclosures regarding uncertainties in income tax positions. The Company recognizes interest and penalties related to income tax matters in selling, general, and administrative expense in the consolidated statement of operations. The Company recognizes deferred tax assets to the extent that its assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies, and results of recent operations. If the Company determines that it would be able to realize its deferred tax assets in the future in excess of their net recorded amount, it will make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes.
Stock-Based Compensation	Stock-Based Compensation The Company accounts for grants of share-based awards to employees in accordance with ASC 718, Compensation—Stock Compensation Equity
Segments	Segments The Company’s chief operating decision maker reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance and information for different revenue streams is not evaluated separately. As such, the Company’s operations constitute a single operating segment and one reportable segment.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements ASU 2014-09, Revenue from Contracts with Customers (Topic 606), Revenue Recognition (Topic 605) In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU No. 2016-02, Leases In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments In June 2018, the FASB issued ASU No. 2018-07, Compensation- Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting In August 2018, the FASB issued ASU No. 2018-15 , Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customers Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. This ASU provides supplemental guidance and clarification to ASU No. 2016-13 and must be adopted concurrently with the adoption of ASU No. 2016-13. The Company has adopted the new standard effective April, 2019. The adoption of this standard had no material impact on the Company’s consolidated financial statements.

Balance Sheet Disclosures (Tabl

Balance Sheet Disclosures (Tables)	12 Months Ended
	Jun. 30, 2019
Balance Sheet Disclosures [Abstract]
Schedule of prepaid expenses	June 30, June 30, 2019 2018 Software and technology $ 237,930 $ 115,516 Professional services 169,804 47,626 Insurance 159,940 18,096 Deposit 10,000 10,000 $ 577,674 $ 191,238
Schedule of Accrued liabilities	June 30, June 30, 2019 2018 Professional fees $ 49,205 $ 24,404 Sales taxes 36,358 66,347 Compensation 354,724 251,393 Leaf Data Systems contractors 19,557 - Other 40,706 31,690 $ 500,550 $ 373,834

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	12 Months Ended
	Jun. 30, 2019
Equity [Abstract]
Schedule of stock warrants	Shares under warrants Weighted average exercise price Weighted average remaining life Aggregate intrinsic value Outstanding at July 1, 2017 - Issued 5,993,750 $ 11.50 Exercised - Expired/cancelled - Outstanding at June 30, 2018 5,993,750 11.50 4.61 Issued 189,365 11.50 Exercised - Expired/cancelled - Outstanding at June 30, 2019 6,183,115 $ 11.50 3.72 $ 2,473,000

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Schedule of Expense or (benefit) for income taxes	June 30, June 30, 2019 2018 Income tax expense Current income taxes U.S. federal $ - $ - U.S. state - - Total current income taxes $ - $ - June 30, June 30, 2019 2018 Deferred income taxes U.S. federal $ - $ - U.S. state - - Total deferred income tax benefit $ - $ -
Schedule of statutory federal income tax rate to actual rates based on income or loss before income taxes	June 30, June 30, 2019 2018 Income tax expense and rate attributable to: Federal $ (2,509,246 ) $ - State, net of federal benefit (13,452 ) - Restricted stock awards 816,505 - Changes in valuation allowance 85,455 - Losses from flow-through entity not subject to tax 1,640,066 - Other adjustments (19,328 ) - Effective income tax expense and rate $ - $ - June 30, June 30, 2019 2018 Noncurrent deferred tax assets: Allowance for doubtful accounts $ 22,226 $ - Charitable contribution carryforward 147 - Federal and state net operating loss 63,082 - Total deferred tax assets $ 85,455 $ - Valuation allowance (85,455 ) - Deferred tax assets after valuation allowance $ - $ -

Revisions of Financial Statem_2

Revisions of Financial Statements for the Fiscal Quarters during Fiscal Years 2019 and 2018 (Tables)	12 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of reclassifications	Fiscal 2019 Fiscal year 2018 As reported Adjustment As revised As reported Adjustment As revised Quarter Ended September 30 Total revenue $ 2,371,900 $ 2,371,900 $ 2,672,502 $ 2,672,502 Cost of revenues 956,123 107,012 1,063,135 1,283,246 79,949 1,363,195 Gross profit 1,415,777 (107,012 ) 1,308,765 1,389,256 (79,949 ) 1,309,307 Operating expenses 3,055,976 (107,012 ) 2,948,964 3,038,013 (79,949 ) 2,958,064 Net less (1,623,182 ) (1,623,182 ) (1,664,706 ) (1,664,706 ) Net loss per share (0.15 ) (0.15 ) (0.21 ) (0.21 ) Quarter Ended December 31 Total revenue 2,598,079 2,598,079 2,859,582 2,859,582 Cost of revenues 1,198,911 122,084 1,320,995 1,068,828 79,949 1,148,777 Gross profit 1,399168 (122,084 ) 1,277,084 1,790,754 (79,949 ) 1,710,805 Operating expenses 3,826,539 (122,084 ) 3,704,455 2,770,833 (79,949 ) 2,690,884 Net loss (2,370,204 ) (2,370,204 ) (992,463 ) (992,463 ) Net loss per share (0.19 ) (0.19 ) (0.12 ) (0.12 ) Quarter Ended March 31 Total revenue 2,327,880 2,327,880 2,315,635 2,315,635 Cost of revenues 1,042,403 124,079 1,166,482 737,762 79,949 817,711 Gross profit 1,285,477 (124,079 ) 1,161,398 1,577,873 (79,949 ) 1,497,924 Operating expenses 3,788,644 (124,079 ) 3,664,565 1,204,242 (79,949 ) 1,124,293 Net loss (2,490,103 ) (2,490,103 ) (364,227 ) (364,227 ) Net loss per share (0.20 ) (0.20 ) (0.04 ) (0.04 )

Description of Business, Liqu_2

Description of Business, Liquidity and Capital Resources (Details)	12 Months Ended
	Jun. 30, 2019
Description of Business, Liquidity and Capital Resources (Textual)
Common stock exchange ratio, description	The outstanding Common Units, Preferred Units, and Profit Interest Units of MJF were exchanged for shares of common stock of Akerna at an exchange ratio of one Unit of MJF to 0.26716 shares of Akerna common stock (the "Exchange Ratio). Except as otherwise noted, all common share amounts and per share amounts have been adjusted to reflect this Exchange Ratio, which was effected upon the Merger.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Details)	12 Months Ended
	Jun. 30, 2019USD ($)Customers	Jun. 30, 2018USD ($)Customers
Summary of Significant Accounting Policies (Textual)
Allowance for doubtful accounts	$ 190,088	$ 39,571
Software revenues	4,251,263	4,470,310
Total costs of government revenues	2,150,062	2,670,319
Cash balances	21,867,289	$ 1,572,090
Reclassified from selling, general and administrative expenses to cost of revenues	$ 319,798
Customer one [Member] | Total revenues [Member]
Summary of Significant Accounting Policies (Textual)
Concentration risk percentage	30.00%	37.00%
Number of customer | Customers	1	1
Customer one [Member] | Net accounts receivable [Member]
Summary of Significant Accounting Policies (Textual)
Concentration risk percentage	33.00%	55.00%
Number of customer | Customers	2	2
Customer two [Member] | Net accounts receivable [Member]
Summary of Significant Accounting Policies (Textual)
Concentration risk percentage	24.00%	11.00%
Number of customer | Customers	2	2

Balance Sheet Disclosures (Deta

Balance Sheet Disclosures (Details) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Balance Sheet Disclosures [Abstract]
Software and technology	$ 237,930	$ 115,516
Professional services	169,804	47,626
Insurance	159,940	18,096
Deposit	10,000	10,000
Total	$ 577,674	$ 191,238

Balance Sheet Disclosures (De_2

Balance Sheet Disclosures (Details 1) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Balance Sheet Disclosures [Abstract]
Professional fees	$ 49,205	$ 24,404
Sales taxes	36,358	66,347
Compensation	354,724	251,393
Leaf Data Systems contractors	19,557
Other	40,706	31,690
Total	$ 500,550	$ 373,834

Balance Sheet Disclosures (De_3

Balance Sheet Disclosures (Details Textual) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Balance Sheet Disclosures (Textual)
Accrued compensation	$ 215,000	$ 122,000

Reverse Merger and Private Pl_2

Reverse Merger and Private Placement (Details) - USD ($)	Jun. 17, 2019	Apr. 17, 2019	Jun. 30, 2019	Jun. 30, 2018
Reverse Merger and Private Placement (Textual)
Merger agreement, description	(a) 283,011 fully vested shares of common stock were allocated to the former holders of MJF profit interest units, resulting in an immediate one-time charge of approximately $3.4 million to be recorded by MJF on June 17, 2019 and (b) 215,063 unvested shares of common stock were allocated to the holders of MJF profit interest units, of which approximately $2.1 million of compensation expense related to such profit interest units will be ratably recognized over an estimated remaining vesting period of 3 years.	(i) increase the size of the MTech board of directors following the closing of the merger from seven (7) to eight (8) directors, (ii) increase the number of directors appointed prior to the Closing by MJF from four (4) to five (5) directors (which additional director will qualify as an independent director under Nasdaq rules) and (iii) revise the classification of directors so that the Class B directors will include two (2) MJF directors and one (1) MTech director.
Common stock issued for consideration	6,520,099
Price per share	$ 10.16
Number of shares vested	283,010
Number of shares unvested	215,063
Number of shares issuable held in escrow account	652,010
Lock-up agreement, description	With respect to 50% of the Consideration Shares, each holder agreed not to engage in a transfer or other transaction until the earlier of (1) one year from the closing of the Business Combination and (2) the date on which Akerna closes a subsequent corporate transaction with an unaffiliated third party that results in all of Akerna's shareholders having the right to exchange their shares for cash, securities or other property. With respect to the remaining 50% of the Consideration Shares, each holder agreed not to engage in a transfer or other transaction until the earlier of (1) one year from the closing the business combination, (2) the date on which Akerna closes a subsequent corporate transaction with an unaffiliated third party that results in all of Akerna's shareholders having the right to exchange their shares for cash, securities or other property and (3) the date on which the closing share price of Akerna common stock equals or exceeds $12.50 per share for any twenty trading days with any thirty trading day period.
Common stock, shares authorized			75,000,000	75,000,000
Common stock, par value			$ 0.0001	$ 0.0001
Proceeds received from the mergers	$ 18,000,000
Underwriting discounts, commissions and other expenses	$ 4,400,000
Preferred stock, shares authorized			5,000,000	5,000,000
Merger Agreement [Member]
Reverse Merger and Private Placement (Textual)
Common stock, shares authorized	75,000,000
Common stock, par value	$ 0.0001
Preferred stock, shares authorized	5,000,000
PIPE Investors [Member]
Reverse Merger and Private Placement (Textual)
Securities purchase agreements, description	Whereby MTech issued 901,074 shares of Class A common stock (the "Private Placement Shares") for an aggregate purchase price of $9.2 million (the "Private Placement"), which closed simultaneously with the consummation of the Mergers. Upon the closing of the Mergers, the Private Placement Shares were automatically converted into shares of Akerna common stock on a one-for-one basis. Each PIPE Investor was also granted an option for a period of sixty days to purchase additional shares of Akerna common stock at a price of $10.21 per share. None of these options were exercised within sixty days.

Loss Per Share (Details)

Loss Per Share (Details) - shares	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Loss Per Share (Textual)
Potentially dilutive securities to warrants issued	6,398,178	5,993,750
Total securities related to warrants	6,183,115
Unvested restricted shares	215,063

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Shares under warrants
Beginning balance, outstanding	5,993,750
Issued	189,365	5,993,750
Exercised
Expired/cancelled
Ending balance, outstanding	6,183,115	5,993,750
Weighted average exercise price
Beginning balance, outstanding	$ 11.50
Issued	11.50	11.50
Exercised
Expired/cancelled
Ending balance, outstanding	$ 11.50	$ 11.50
Weighted average remaining life
Beginning balance, outstanding	4 years 7 months 10 days
Ending balance, outstanding	3 years 8 months 19 days	4 years 7 months 10 days
Aggregate intrinsic value
Ending balance, outstanding	$ 2,473,000

Stockholders' Equity (Details T

Stockholders' Equity (Details Textual) - USD ($)	1 Months Ended		12 Months Ended
	Aug. 31, 2018	Nov. 30, 2017	Jun. 30, 2019	Jun. 30, 2018	Jun. 17, 2019
Stockholders' Equity (Textual)
Common stock, shares authorized			75,000,000	75,000,000
Common stock, par value			$ 0.0001	$ 0.0001
Preferred stock, par value			$ 0.0001	$ 0.0001
Preferred stock, shares authorized			5,000,000	5,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Issuance of preferred shares
Common stock issued for cash consideration	1,099,376	137,740
Cash consideration	$ 10,000,000	$ 1,000,000	$ 10,000,000	$ 1,000,000
One-time charge					$ 3,400,000
Price per share					$ 10.16
Aggregate intrinsic value			$ 1,522,815
Equity Incentive Plan [Member]
Stockholders' Equity (Textual)
Common stock reserved					1,040,038
Public warrant [Member]
Stockholders' Equity (Textual)
Sale of stock, description			The Company sold 5,750,000 units at a purchase price of $10.00 per unit, inclusive of 750,000 units sold to the underwriters on February 8, 2018 upon the underwriters' election to fully exercise their over-allotment option.
Warrant exercise price			$ 11.50
Private warrant [Member]
Stockholders' Equity (Textual)
Sale of stock, description			An affiliated party purchased an aggregate of 225,000 units at $10.00 per unit, for an aggregate purchase price of $2,250,000. On February 8, 2018, the MTech consummated the sale of an additional 18,750 private units at a price of $10.00 per unit generating gross proceeds of $187,500. Each unit consists of one share of MTech's common stock and one warrant ("Private Warrants").
Warrant exercise price			$ 11.50
Restricted Shares [Member]
Stockholders' Equity (Textual)
Restricted shares issued			$ 107,618	$ 181,000
Restricted shares forfeited			68,794	64,785
Restricted Shares vested			118,705	75,406
Restricted shares oustanding			215,063	294,944
Sale of stock, description			Additional 107,618 Restricted Shares were granted (402,824 PIUs before retroactively applying the exchange ratio), 68,794 Restricted Shares were forfeited (257,500 PIUs before retroactively applying the exchange ratio), and 118,705 Restricted Shares vested (444,324 PIUs before retroactively applying the exchange ratio). At June 30, 2019, there were 215,063 Restricted Shares outstanding (805,000 PIUs before retroactively applying the exchange ratio).	181,000 Restricted Shares were granted (677,500 PIUs before retroactively applying the exchange ratio), 64,785 Restricted Shares were forfeited (242,500 PIUs before retroactively applying the exchange ratio), and 75,406 Restricted Shares vested (282,250 PIUs before retroactively applying the exchange ratio). At June 30, 2018, there were 294,944 Restricted Shares outstanding (1,104,000 PIUs before retroactively applying the exchange ratio).
Stock-based compensation expenses related to unvested Restricted Shares			$ 500,000
Total unrecognized costs			$ 2,100,000
Estimated remaining vesting period			3 years
Series B Preferred Stock [Member]
Stockholders' Equity (Textual)
Preferred stock, shares issued		515,570
Issuance of preferred shares		515,570
Series C Preferred Stock [Member]
Stockholders' Equity (Textual)
Preferred stock, shares issued	4,115,042
Issuance of preferred shares	4,115,042
IPO [Member]
Stockholders' Equity (Textual)
Sale of stock, description			There were also 250,000 options sold to an affiliate party to purchase up to 250,000 units exercisable at $10.00 per unit ("Option Shares"). The unit purchase option could be exercised for cash or on a cashless basis, at the holder's option. Each unit consisted of one share of Company's common stock, par value $0.0001 per share, and one warrant entitling the holder to purchase one share of Company's common stock. These options were exercised on a cashless basis into 189,365 shares of common stock and 189, 365 warrants, which were outstanding as of June 30, 2019.
Shares sold			250,000
Price per share			$ 10
Options exercised			189,365
Warrants issued			189,365
Private Placement [Member]
Stockholders' Equity (Textual)
Sale of stock, description			The Company also provided each investor the ability to purchase additional shares of Akerna common stock at a price of $10.21 per share, up to their pro rata share of the 901,074 Private Placement Shares purchased.

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Commitments and Contingencies (Textual)
Rent expense	$ 151,458	$ 140,946
Future minimum lease payments under the leases	96,000
Restricted cash	500,000	1,000,311
Renewed cash balance	$ 500,000
Termination date	Jun. 22, 2019
Target bonus percentage	100.00%
Employment agreement, description	The Billingsley Employment Agreement also contains noncompetition and non-solicitation provisions that apply through her employment and for a term of 1 year thereafter, and which are in addition to the noncompetition and non-solicitation provisions prescribed under the Non-Competition Agreements below.
Bonus accrual	$ 215,000
Employee benefit plan, description	Employees may contribute up to 100% of their annual compensation to the Plan, limited to a maximum annual amount as updated annually by the IRS.
Proceeds from net of legal fees	$ 940,000
Billingsley Employment Agreement [Member]
Commitments and Contingencies (Textual)
Annual base salary	$ 250,000
Employment agreement, description	The base salary subject to (i) review at least annually by board of directors of Akerna for increase, but not decrease, and (ii) automatic increase by an amount equal to $50,000 from its then current level on the date upon which Akerna's aggregate, gross consolidated trailing twelve month (TTM) revenue equals the product of (x) two multiplied by (y) Akerna's aggregate, gross consolidated trailing twelve month (TTM) revenue as the Closing. Within 10 days of the Closing, Akerna will also pay to Ms. Billingsley a single lump sum of $95,000.
Line of Credit [Member]
Commitments and Contingencies (Textual)
Restricted cash		$ 1,000,000

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Current income taxes
U.S. federal
U.S. state
Total current income taxes
Deferred income taxes
U.S. federal
U.S. state
Total deferred income tax benefit

Income Taxes (Details 2)

Income Taxes (Details 2) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Income tax expense and rate attributable to:
Federal	$ (2,509,246)
State, net of federal benefit	(13,452)
Restricted stock awards	816,505
Changes in valuation allowance	85,455
Losses from flow-through entity not subject to tax	1,640,066
Other adjustments	(19,328)
Effective income tax expense and rate

Income Taxes (Details 3)

Income Taxes (Details 3) - USD ($)	Jun. 30, 2019	Jun. 30, 2018
Noncurrent deferred tax assets:
Allowance for doubtful accounts	$ 22,226
Charitable contribution carryforward	147
Federal and state net operating loss	63,082
Total deferred tax assets	85,455
Valuation allowance	(85,455)
Deferred tax assets after valuation allowance

Income Taxes (Details Textuals)

Income Taxes (Details Textuals)	12 Months Ended
	Jun. 30, 2019USD ($)
Income Taxes (Textual)
Net operating losses	$ 239,281
Valuation allowance	$ 85,455
Income taxes, description	The Company recorded deferred tax assets related to U.S. state tax net operating loss carryforwards, which expire at various dates beginning in 2039.

Revisions of Financial Statem_3

Revisions of Financial Statements for the Fiscal Quarters during Fiscal Years 2019 and 2018 (Details) - USD ($)	3 Months Ended						12 Months Ended
	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2019	Jun. 30, 2018
Total revenue	$ 2,327,880	$ 2,598,079	$ 2,371,900	$ 2,315,635	$ 2,859,582	$ 2,672,502	$ 10,919,785	$ 10,476,783
Cost of revenues	1,166,482	1,320,995	1,063,135	817,711	1,148,777	1,363,195	4,633,844	4,361,963
Gross profit	1,161,398	1,277,084	1,308,765	1,497,924	1,710,805	1,309,307	6,285,941	6,114,820
Operating expenses	3,664,565	3,704,455	2,948,964	1,124,293	2,690,884	2,958,064	18,701,619	8,577,980
Net loss	$ (2,490,103)	$ (2,370,204)	$ (1,623,182)	$ 364,227	$ (992,463)	$ (1,664,706)	$ (12,306,547)	$ (2,488,309)
Net loss per share	$ (0.20)	$ (0.19)	$ (0.15)	$ 0.04	$ (0.12)	$ (0.21)	$ (2.04)	$ (0.51)
As reported [Member]
Total revenue	$ 2,327,880	$ 2,598,079	$ 2,371,900	$ 2,315,635	$ 2,859,582	$ 2,672,502
Cost of revenues	1,042,403	1,198,911	956,123	737,762	1,068,828	1,283,246
Gross profit	1,285,477	1,399,168	1,415,777	1,577,873	1,790,754	1,389,256
Operating expenses	3,788,644	3,826,539	3,055,976	1,204,242	2,770,833	3,038,013
Net loss	$ (2,490,103)	$ (2,370,204)	$ (1,623,182)	$ 364,227	$ (992,463)	$ (1,664,706)
Net loss per share	$ (0.20)	$ (0.19)	$ (0.15)	$ 0.04	$ (0.12)	$ (0.21)
Adjustment [Member]
Cost of revenues	$ 124,079	$ 122,084	$ 107,012	$ 79,949	$ 79,949	$ 79,949
Gross profit	(124,079)	(122,084)	(107,012)	(79,949)	(79,949)	(79,949)
Operating expenses	$ (124,079)	$ (122,084)	$ (107,012)	$ (79,949)	$ (79,949)	$ (79,949)

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	1 Months Ended	12 Months Ended
	Jul. 31, 2019	Jun. 30, 2019
Subsequent Events (Textual)
Warrant exercised price		$ 11.50
Total proceeds		$ 4,242,465
Subsequent Event [Member]
Subsequent Events (Textual)
Annual base salary	$ 150,000