Gryphon Digital Mining (GRYP) 10-Q 16 Nov 20 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2020	Nov. 12, 2020
Document and Entity Information [Abstract]
Entity Registrant Name	Akerna Corp.
Entity Central Index Key	0001755953
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Sep. 30, 2020
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2021
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	001-39096
Entity Incorporation State Country Code	DE
Entity Common Stock, Shares Outstanding		19,685,932

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2020	Jun. 30, 2020
Current assets:
Cash	$ 14,257,858	$ 24,155,828
Restricted cash	500,000	500,000
Accounts receivable, net	2,799,225	1,861,534
Prepaid expenses and other current assets	1,475,613	1,215,341
Total current assets	19,032,696	27,732,703
Non-current assets:
Fixed assets, net	1,395,690	131,095
Investment, net	244,774	246,308
Capitalized software, net	3,389,646	2,629,304
Intangible assets, net	10,730,021	7,493,975
Goodwill	46,500,030	20,254,309
Other non-current assets	41,925	41,925
Total Assets	81,334,782	58,529,619
Current liabilities
Accounts payable and accrued liabilities	5,998,001	4,861,928
Contingent consideration payable	817,000	389,000
Deferred revenue	1,170,625	368,685
Current portion of long-term debt	10,146,001	6,135,364
Total current liabilities	18,131,627	11,754,977
Long-term debt, less current portion	5,481,599	10,200,236
Total liabilities	23,613,226	21,955,213
Commitments and contingencies (Note 6)
Equity:
Preferred stock value
Common stock, par value $0.0001; 75,000,000 shares authorized, 14,685,932 issued and outstanding at September 30, 2020, and 13,258,707 shares issued and outstanding at June 30, 2020	1,464	1,321
Additional paid-in capital	83,164,840	72,906,924
Accumulated other comprehensive (loss) income	(7,000)	63,000
Accumulated deficit	(45,842,967)	(41,101,091)
Total stockholders' equity	57,721,556	31,870,154
Noncontrolling interests in consolidated subsidiary		4,704,252
Total equity	57,721,556	36,574,406
Total liabilities and equity	81,334,782	58,529,619
Special Voting Preferred Stock
Equity:
Preferred stock value	20,405,219
Total equity	$ 20,405,219

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2020	Jun. 30, 2020
Common stock, shares outstanding	14,685,932	13,258,707
Common stock, shares issued	14,685,932	13,258,707
Common stock, shares authorized	75,000,000	75,000,000
Common stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares outstanding
Preferred stock, shares issued
Preferred stock, shares authorized	4,999,999	5,000,000
Preferred stock, par value	$ 0.0001	$ 0.0001
Special Voting Preferred Stock
Preferred stock, liquidation preference per share		$ 1
Preferred stock, shares outstanding	1
Preferred stock, shares issued	1
Preferred stock, shares authorized	1
Preferred stock, par value	$ 0.0001

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Revenues
Software	$ 3,154,442	$ 2,254,480
Consulting	331,080	831,363
Other	228,482	107,047
Total revenues	3,714,004	3,192,890
Cost of revenues	1,739,937	1,379,701
Gross profit	1,974,067	1,813,189
Operating expenses
Product development	1,758,826	610,902
Sales and marketing	2,097,502	1,841,514
General and administrative	2,470,187	1,742,301
Depreciation and amortization	1,171,022	17,899
Total operating expenses	7,497,537	4,212,616
Loss from operations	(5,523,470)	(2,399,427)
Other income (expense)
Interest (expense), net	(3,687)	73,382
Change in fair value of Convertible Notes	778,000
Other		(287)
Total other income (expense)	774,313	73,095
Net loss before income tax expense	(4,749,157)	(2,326,332)
Equity in losses of investee	(1,534)
Net loss	(4,750,691)	(2,326,332)
Net loss attributable to noncontrolling interest in consolidated subsidiary	8,815
Net loss attributable to Akerna shareholders	$ (4,741,876)	$ (2,326,332)
Basic and diluted weighted average common stock outstanding	14,058,412	10,879,112
Basic and diluted net loss per common share	$ (0.34)	$ (0.21)

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss - USD ($)	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Statement of Comprehensive Income [Abstract]
Net loss	$ (4,750,691)	$ (2,326,332)
Other comprehensive (loss) income:
Unrealized loss on Convertible Notes	(70,000)
Comprehensive loss	(4,820,691)	(2,326,332)
Comprehensive loss attributable to the noncontrolling interest	8,815
Comprehensive loss attributable to Akerna shareholders	$ (4,811,876)	$ (2,326,332)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($)	Total	Special Voting Preferred Stock	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	Akerna Shareholders' Equity	Noncontrolling Interests in Consolidated Subsidiary
Balance at Jun. 30, 2019	$ 21,759,734		$ 1,059	$ 47,325,421		$ (25,566,746)	$ 21,759,734
Balance shares at Jun. 30, 2019			10,589,746
Cash received in connection with exercise of warrants	4,242,454		$ 37	4,242,417			4,242,454
Cash received in connection with exercise of warrants, shares			368,910
Amortization of stock-based compensation	161,165			161,165			161,165
Net loss	(2,326,332)					(2,326,332)	(2,326,332)
Balance at Sep. 30, 2019	23,837,021		$ 1,096	51,729,003		(27,893,078)	23,837,021
Balance shares at Sep. 30, 2019			10,958,656
Balance at Jun. 30, 2020	36,574,406		$ 1,321	72,906,924	63,000	(41,101,091)	31,870,154	4,704,252
Balance shares at Jun. 30, 2020			13,203,806
Special voting preferred stock issued in business combination	25,203,490	25,203,490					25,203,490
Conversion of exchangeable shares to common stock		(4,798,271)	$ 63	4,798,208
Conversion of exchangeable shares to common stock, Shares			627,225
Acquisition of noncontrolling interest			$ 80	4,695,357			4,695,437	(4,695,437)
Acquisition of noncontrolling interest, Shares			800,000
Amortization of stock-based compensation	764,351			764,351			764,351
Restricted stock unit vesting
Restricted stock unit vesting, Shares			3,025
Change in fair value of convertible notes	(70,000)				(70,000)		(70,000)
Net loss	(4,750,691)					(4,741,876)	(4,741,876)	(8,815)
Balance at Sep. 30, 2020	$ 57,721,556	$ 20,405,219	$ 1,464	$ 83,164,840	$ (7,000)	$ (45,842,967)	$ 57,721,556
Balance shares at Sep. 30, 2020			14,634,056

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities
Net loss	$ (4,750,691)	$ (2,326,332)
Adjustment to reconcile net loss to net cash used in operating activities:
Equity in losses of investment	1,534
Bad debt	12,450	252,809
Stock-based compensation expense	681,419	161,165
Depreciation and amortization	1,171,022	17,899
Foreign currency loss	4,901
Change in fair value of convertible notes	(778,000)
Change in fair value of contingent consideration	(389,000)
Changes in operating assets and liabilities:
Accounts receivable	(9,298)	(1,508,217)
Prepaid expenses and other current assets	(74,023)	(292,272)
Accounts payable and accrued liabilities	(296,802)	274,566
Deferred revenue	245,329	278,208
Net cash used in operating activities	(4,181,159)	(3,142,174)
Cash flows from investing activities
Developed software additions	(624,863)	(519,739)
Furniture, fixtures, and equipment additions	(12,203)
Cash paid for business combination, net of cash acquired	(5,067,740)
Net cash used in investing activities	(5,704,806)	(519,739)
Cash flows from financing activities
Cash paid for deferred stock offering costs	(12,668)
Cash received in connection with exercise of warrants		4,242,454
Net cash (used in) provided by financing activities	(12,668)	4,242,454
Effect of exchange rate changes on cash and restricted cash	663
Net change in cash and restricted cash	(9,897,970)	580,541
Cash and restricted cash - beginning of period	24,655,828	22,367,289
Cash and restricted cash - end of period	14,757,858	22,947,830
Interest Paid, Excluding Capitalized Interest, Operating Activities		1,974
Supplemental disclosure of non-cash investing and financing activity:
Capitalized software included in accrued expense	807,218
Acquisition of noncontrolling interest	4,695,437
Special voting preferred stock issued in business combination	4,798,271
Conversion of exchangeable shares to common stock	$ 25,203,490

Description of Business, Liquid

Description of Business, Liquidity and Capital Resources	3 Months Ended
	Sep. 30, 2020
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., herein referred to as we, our or Akerna, through our wholly owned subsidiaries MJ Freeway, LLC, or MJF, Trellis Solutions, Inc., or Trellis, Ample Organics, Inc, or Ample, and solo sciences, inc, or Solo, provides enterprise software solutions that enable regulatory compliance and inventory management. Our proprietary, broad and growing suite of solutions are 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. We develop products intended to assist states in monitoring licensed businesses’ compliance with state regulations and to help state-licensed businesses operate in compliance with such laws. We provide our commercial software platforms, MJ Platform ® ® ® we provide an innovative, next-generation solution for state and national governments to securely track product and waste throughout the supply chain with solo*TAG ™ . The integration of MJ Platform ® ™ results in technology for consumers and brands that brings a consumer-facing mark designed to highlight authenticity and signify transparency. We consult with clients on a wide range of areas to help them successfully maintain compliance with state laws and regulations. We provide project-focused consulting services to clients who are initiating our expanding their cannabis business operations or are interested in data consulting engagements with respect to the legal cannabis industry. Our consulting engagements include service offerings focused on compliance requirement assessments, readiness and best practices, compliance monitoring systems, application processes, inspection readiness and business plan and compliance reviews. We typically provide our consulting services to clients in emerging markets who are seeking consultation on newly introduced licensing regimes and assistance with the regulatory compliant build-out of operations. Fiscal Year-End On September 25, 2020, our Board of Directors adopted resolutions to change our fiscal year-end from June 30 to December 31, effective for the year ending December 31, 2020. We will cover the transition period from July 1, 2020 to December 31, 2020 by filing an Annual Report on Form 10-K for the transition year ending December 31, 2020. Liquidity and Capital Resources Since our i nception 5.5 4.2 14.3 0.9 During the quarter ended September 30, 2020, the Company incurred a number of one 1.1 5 11.0 cost reduction initiatives reducing costs and identifying costs savings that we expect to result in annual savings of an additional $ 3.0 4.0 twelve In the event the Company requires additional liquidity, the Company can further reduce or defer expenses. More specifically, the Company could implement certain discretionary cost reduction initiatives relating to our spend on employee travel and entertainment, consulting costs and marketing expenses, negotiate deferred salary arrangements, furlough employees or reduce headcount or negotiate extensions of payments of rent and utilities. 2

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2 - Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 8 three months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the fiscal year transition period comprised of six The condensed consolidated balance sheet for the year ended June 30, 2020, has been derived from our audited financial statements at that date but does not include all disclosures and financial information required by GAAP for complete financial statements. The information included in this quarterly report on Form 10-Q should be read in conjunction with our consolidated financial statements and notes thereto for the year ended June 30, 2020, which were included in our annual report on Form 10-K filed on September 29, 2020. Principles of Consolidation Our accompanying condensed consolidated financial statements include the accounts of Akerna, our wholly owned subsidiaries and those entities in which we otherwise have a controlling financial interest. All significant intercompany balances and transactions have been eliminated in consolidation. We evaluate our ownership interests, contractual rights and other interests in entities to determine if the entities are variable interest entities, or VIEs, when we have a variable interest in those entities. Generally, a VIE is a legal entity in which the equity investors do not have the characteristics of a controlling financial interest or the equity investors lack sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. These evaluations can be complex and involve judgment and the use of estimates and assumptions based on available historical information. If we determine that we hold a variable interest in a VIE and we are the primary beneficiary of the VIE, we must consolidate the VIE in our financial statements. In determining whether we are the primary beneficiary of a VIE, we consider qualitative and quantitative factors, including, but not limited to: which activities most significantly impact the VIE’s economic performance and which party controls such activities; the amount and characteristics of our investment; the obligation or likelihood for us or other investors to provide financial support; and the similarity with and significance to our business activities and the business activities of the other investors. Significant judgments related to these determinations include estimates about the current and future fair values and performance of these VIE’s operations and general market conditions. We determine whether we are the primary beneficiary of a VIE upon our initial involvement with the VIE and reassess our status on an ongoing basis. Segment Reporting Our 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, t he Company has one operating segment, and the decision-making group is the senior executive management team. In the following table, revenue is disaggregated by primary geographical markets and revenue source. For the Three Months Ended 2020 2019 Primary geographical markets: United States $ 2,285,211 $ 3,054,670 Canada 1,270,109 28,385 Other 158,684 109,835 Total $ 3,714,004 $ 3,192,890 As of September 30 2020 As of June 30, 2020 Long-lived assets: United States $ 10,170,265 $ 10,254,374 Canada 5,345,092 - Total $ 15,515,357 $ 10,254,374 Use of Estimates The preparation of our condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts included in the financial statements and accompanying notes thereto. Actual results could differ materially from those estimates. Accounts Receivable, Net We maintain an allowance for doubtful accounts equal to the estimated uncollectible amounts based on our historical collection experience and review of the current status of trade accounts receivable. The allowance for doubtful accounts was $ 0.2 million September 30, 2020 0.2 June 30, 2020 Concentrations of Credit Risk We grant credit in the normal course of business to customers in the United States. We periodically perform credit analysis and monitor the financial condition of our customers to reduce credit risk. During the three months ended September 30, 2020, 2019 one government client accounted for 17 % and 24 30, 2020 two government clients accounted f or a total of 38 20 % one 63 Goodwill Impairment Assessment We evaluate and test the recoverability of our goodwill for impairment at least annually during October of each year or more often if circumstances indicate that goodwill may not be recoverable. To date, we have not recorded any impairment of our goodwill. Foreign Currency Translation We have Canadian operations with Canadian Dollar as the functional currency. Foreign exchange gains and losses and translation adjustments, which result from the process of remeasuring foreign currency transactions into the appropriate functional currency, were immaterial during the quarter ended September 30, 2020. Supplemental Information Regarding Noncash Investing and Financing Activities During the three months ended September 30, 2020 acquired 100 % o ued at $ 25.2 3 Stock-Based Compensation We measured stock-based compensation based on the fair value of the share-based awards on the date of grant and recognize the related costs on a straight-line basis over the requisite service period, which is generally the vesting period. During the three months ended September 30, 2020, we granted 451,925 2.2 four Reclassifications and Revisions Certain prior year financial statement amounts have been reclassified for consistency with the current year presentation. Additionally, certain prior year financial statement amounts have been revised to correct misstatements in the prior year, please refer to Note 9 Recent Accounting Pronouncements The Financial Accounting Standards Board, or the FASB, has issued guidance to simplify the remeasurement of goodwill when impairment is identified. Under existing guidance we would have to perform procedures to determine the fair value of our assets and liabilities as of the testing date in a manner similar to the procedures necessary to allocate purchase price to acquired assets and liabilities in a business combination. Under the new guidance, the goodwill impairment charge is equal to the excess of the carrying value of the reporting unit to which goodwill is assigned and the fair value of that reporting unit. We have elected to adopt the guidance early effective July 1, 2020 and will utilize this approach if necessary when we perform our annual goodwill impairment test. The FASB has issued guidance related to the accounting for share-based compensation to six The FASB has issued guidance to revise accounting for revenue from contracts with customers, which supersedes the revenue recognition requirements and industry-specific guidance currently in effect for us. The new revenue standard requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled to in exchange for those goods or services. The new revenue standard is effective for our fiscal 2021 1 six The FASB has issued new guidance related to the accounting for leases. The new standard establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of operations. Following our change in fiscal year effective on December 31, 2020, the new standard is effective for us beginning with our fiscal year ending December 31, 2022 and in interim periods thereafter. We have limited assets subject to operating lease and therefore expect the adoption of the new standard to result in the recognition of right of use assets and lease liabilities for any office or vehicle leases in effect at that date, we do not expect a significant impact to our results of operations. The FASB has issued guidance to introduce a new model for recognizing credit losses on financial instruments based on estimated current expected credit losses, or CECL. Under the new standard, an entity is required to estimate CECL on trade receivables at inception, based on historical information, current conditions, and reasonable and supportable forecasts. Following our change in fiscal year-end effective December 31, 2020, the new guidance is effective for us beginning on January 1, 2023. We are evaluating the impact of adoption of the new standard on our consolidated financial statements. The FASB has issued guidance regarding whether internal-use software development costs should be capitalized or charged to expense. Depending upon on the nature of the costs and the project stage in which they are incurred. Capitalized development costs are subject to amortization and impairment guidance consistent with existing internal-use software development cost guidance. Following our change in fiscal year end effective December 31, 2020, the guidance is applicable for us for the year ending December 31, 2021 The FASB has issued guidance clarifying the interactions between various standards governing investments in equity securities. The new guidance addresses accounting for the transition into and out of the equity method and measurement of certain purchased options and forward contracts to acquire investments. The standard is effective for us for annual and interim periods beginning on January 1, 2022 , with early adoption permitted. Adoption of the standard requires changes to be made prospectively. We do not anticipate a significant impact to our financial statements as a result of this new guidance.

Significant Transactions

Significant Transactions	3 Months Ended
	Sep. 30, 2020
Significant Transactions [Abstract]
Significant Transactions	Note 3 – Significant Transactions Business Combinations On July 7, 2020, we completed the acquisition ), Ample provides a seed- t o-sale platform to clients in Canada, which offers tracking, reporting, and compliance tools to cannabis cultivators, processors, sellers, and clinics. We acquired 100 3.3 one one one 7.65 25.2 $ 5.7 The agreement provides for contingent consideration of up to CAD$ 10,000,000 , payable in exchangeable shares, payable if 12 months after the acquisition date is CAD$ 9,000,000 or more. The contingent consideration amount is reduced by an amount equal to the product of CAD$ 6.67 multiplied by the difference between CAD$ 9,000,000 and the amount of Recurring Revenue realized during the 12 months following the acquisition. The contingent consideration was recorded as the estimated fair value of $ 0.8 Preliminary Fair Value Common shares issued $ 25,203 Cash 5,724 Contingent co nsidera 817 Total preliminary fair value of consideration transferred $ 31,744 We in curred $ 1.0 m The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands): Preliminary Fair Value Cash $ 445 Accounts receivable 917 Prepaid expenses 149 Intangible assets and goodwill 30,433 Furniture, fixtures and equipment 1,327 Accounts payable and accrued expenses ( 978 ) Deferred revenue ( 549 ) Net assets acquired $ 31,744 The excess of purchase consideration over the preliminary fair value of assets acquired and liabilities assumed was recorded as goodwill, which is primarily attributed to the assembled workforce and expanded market opportunities, for which there is no basis for U.S. income tax purposes. The fair values assigned to identifiable assets acquired and liabilities assumed are preliminary based on management’s estimates and assumptions and will change as additional information is received. We expect to finalize the valuation as soon as practicable, but no later than one The amounts of Ample’s revenue and net loss included in our condensed consolidated statement of operations from the acquisition date of July 7, 2020, September 30, 2020 $ 1.2 nd $ 0.4 mil Pro Forma Financial Information The following unaudited pro forma financial information summarizes the combined results of operations for Akerna, Trellis, Solo, and Ample as though the companies were combined as of the beginning of our fiscal 2019 Three Months Ended September 30, 2020 2019 Revenues $ 3,790 $ 4,130 Net loss $ ( 4,686 ) $ ( 4,185 ) The pro forma financial information for all periods presented above has been calculated after adjusting the results of Solo, Trellis, and Ample to reflect the business combination accounting effects resulting from this acquisition, including the amortization expense from acquired intangible assets as though the acquisition occurred as of the beginning of the Company’s fiscal year 2019 2019 Special Voting Preferred Stock and Exchangeable Shares In connection with the Ample acquisition, we entered into agreements with our wholly-owned subsidiary and the Ample shareholder representative that resulted in the issuance of a single share of our special voting preferred stock, for the purpose of ensuring that each Exchangeable Share is substantially the economic and voting equivalent of a share of Akerna common stock, and, following the registration of the Akerna shares issuable upon exchange of the Exchangeable Shares under the Securities Act of 1933 one one The special voting preferred stock has a par value of $ 0.0001 1.00 On September 1, 2020, several Ample shareholders exchanged a total of 627,225 exchangeable shares with a value of $ 4,798,271 for the same number of shares of common stock. The exchange was accounted for as an equity transaction and we did not recognize a gain or loss on this transaction. As of September 30, 2020, there were a total of 2,667,349

Fair Value

Fair Value	3 Months Ended
	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value	Note 4 - Fair Value Contingent Consideration Solo I n connection with our acquisition of Solo, the Solo selling shareholders received the potential to earn the contingent consideration, which was to be calculated as the lesser of (i) $ 0.01 TM and solo*CODE TM sold or (ii) 7 1 12 20 30 TM and solo*CODE TM , which is December 1, 2029. We recorded the fair value of the liability in the condensed consolidated balance sheets under the caption “current contingent consideration” and recognized changes to the fair value of the liability against earnings or loss each reporting period until settlement. The fair value of the contingent consideration on the date of the acquisition of Solo w as $ 389,000 In was $ 0 . W have recorded a gain on settlement of the contingent consideration liability during the three months ended September 30, 2020 in general and administrative expenses in our condensed consolidated statement of operations. Ample In addition to the stock and cash consideration, the agreement provides for contingent consideration of up to CAD$ 10,000,000 , payable in exchangeable shares, payable if Ample's Recurring Revenue recognized during the 12 months after the acquisition date is CAD$ 9,000,000 or more. The contingent consideration amount is reduced by an amount equal to the product of CAD$ 6.67 multiplied by the difference between CAD$ 9,000,000 and the amount of Recurring Revenue realized during the twelve following the acquisition. We record the fair value of the liability in the condensed consolidated balance sheets as contingent consideration payable and recognize changes to the liability against earnings or loss in general and administrative expenses in the condensed consolidated statements of operations. The fair value of the contingent consideration on the date of the acquisition of Ample was $ 817,000 . T September 30, 2020 , is $ 817,000 . Fair Value Option Election – Convertible Notes We issued Convertible Notes with a principal amount of $ 17.0 15.0 For the Convertible Notes, which are measured at fair value categorized within Level 3 June 30, 2020 September 30, 2020 Fair value balance as of June 30, 2020 $ 14,131,000 Change in fair value reported in the statements of operations ( 778,000 ) Change in fair value reported in other comprehensive income 70,000 Fair value balance as of September 30, 2020 $ 13,423,000 The estimated fair value of the Convertible Notes as of June 30, 2020 September 30, 2020 Monte Carlo 3 We estimated the fair value by using the following key inputs to the Monte Carlo Simulation Model : Fair Value Assumptions - Convertible Notes September 30, 2020 June 30, 2020 Face value principal payable $ 17,000,000 $ 17,000,000 Original conversion price $ 11.50 $ 11.50 Value of Common Stock $ 3.64 $ 8.80 Expected term (years) 2.67 2.90 Volatility 68 % 45 % Market yield 28.0 % 23.9 % Risk free rate 0.1 0.2 % 0.2 %

Loss Per Share

Loss Per Share	3 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
Loss Per Share	Note 5 During the three months ended September 30, 2020 two two two Diluted net loss per common share is calculated under the two two The dilutive effect of unvested restricted stock awards and restricted stock units is reflected in diluted loss per share by application of the treasury stock method and is excluded when the effect would be anti-dilutive. The weighted-average number of shares outstanding used in the computation of diluted earnings per share does not include the effect of potential outstanding common shares that would have been anti-dilutive for the period. There were no potentially outstanding shares as of September 30, 2019 September 30, 2020 Three Months Ended 2020 2019 Shares issuable upon exchange of Exchangeable Shares 2,667,349 — Shares of common stock issuable in upon conversion of Convertible Notes 1,542,632 — Warrants 5,813,804 5,814,205 Unvested restricted stock units 824,143 — Unvested restricted stock awards 64,296 215,063 Total 10,912,224 6,029,268

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 6 Contingencies Operating Leases We lease office facilities and vehicles under non-cancelable operating leases. Rent expense for the three months ended September 30, 2020 2019 273,000 36,000 five Three $ 226,687 2021 918,847 2022 439,633 2023 421,418 2024 426,495 2025 464,575 Thereafter 983,731 Total $ 3,881,386 Litigation From time to time, we may be involved in litigation relating to claims arising out of our operations in the normal course of business. We 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 September 30, 2020

Equity Method Investment and Re

Equity Method Investment and Related Party Transactions	3 Months Ended
	Sep. 30, 2020
Investments [Abstract]
Equity Method Investment and Related Party Transactions	Note 7 Transactions Investment in and License Agreement with Zol Solutions, Inc. We hold an investment in 203,000 of ., or n connection with the investment, we received the right to appoint one three the Akerna board member The ZolTrain preferred stock is convertible into shares of common stock of ZolTrain at a conversion rate of $ 1.232 The investment also provides us with rights of first refusal with respect to newly issued securities of We have determined that ZolTrain is a VIE for accounting purposes. However, we are not required to consolidate ZolTrain in our financial statements because we are not ZolTrain’s primary beneficiary. As of September 30, 2020 250,000 For the three months ended September 30, 2020 we have recognized equity in loss of investee of $ 1,535 , Subsequent to our investment, we entered into a nonexclusive license/reseller agreement with ZolTrain, effective October 24, 2019, to provide ZolTrain’s online cannabis training platform as a co-branded integration option into our MJ Platform and Leaf Data Systems, which is a related party transaction. ZolTrain will share subscription-based revenue generated from our customers with us. The amount of the share of the revenue for each of us and ZolTrain will depend on both (a) the number of training modules accessed by a customer and (b) which party created the accessed content. In addition to the revenue sharing arrangement, the license/reseller agreement provides us with the right to receive additional consideration from ZolTrain in the form of an equity earnout if certain revenue milestones are achieved during 2020 , 2021 , and 2022 . Our ability to recognize revenue from the additional earnout consideration in the future will mainly depend on whether it becomes probable that such revenue milestones will be achieved. For the three months ended September 30, 2020 we have not recognized any revenue from this agreement. Employment of Scott Sozio In July 2019, we hired Mr. Scott Sozio, at will, to serve as our Head of Corporate Development. Mr. Sozio receives an annual base salary of $ 150,000 twelve 1 one one In April 2020, Mr. Sozio was granted 1,230 2019 2020 92,166 one 10,000 one 38,527 225,000 TechMagic Software Development Services During the three months ended September 30, 2020, our wholly-owned subsidiary Solo was invoiced by TechMagic USA LLC, a Massachusetts limited liability, or TechMagic, for an amoun t of $ 291,000 . When we acquired Solo in January 2020, we recognized a preacquisition liability of payable to TechMagic of $ 265,000 . Following our acquisition and for the remainder of our fiscal year ended June 30, 2020, we received invoices totaling an aggregate additional amount of $ 392,000 . Th one 20 553,000 pay

Subsequent Events

Subsequent Events	3 Months Ended
	Sep. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	Note 8 Issuance of Common Stock On October 30, 2020, we is sued 5,000,000 shar for net proceeds after offering costs of approxim ately $ 11.0 mil dollars.

Revisions of Previously Issued

Revisions of Previously Issued Financial Statements	3 Months Ended
	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Revisions of Previously Issued Financial Statements	Note 9 inancial Statements During the course of preparing the annual report on Form 10-K for the year ended June 30, 2020 June 30, 2020 We assessed the materiality of these errors on prior periods’ financial statements and concluded that the errors were not material to any prior annual or interim periods, but the cumulative adjustments necessary to correct the errors would be material if we recorded the corrections the period in which the errors were identified. In accordance with GAAP, we are revising the prior periods’ financial statements when they are next issued. See Item. 4 The tables below disclose the effects on the financial statements included in this Quarterly Report on Form 10-Q and the financial statements yet to be Three Months Ended September 30, 2019 As reported Adjustment As revised Con densed Consoli Cost of revenue $ 1,397,361 $ ( 17,660 ) $ 1,379,701 Gross profit 1,795,529 17,660 1,813,189 Product development 1,130,880 ( 519,978 ) 610,902 Selling, general and administrative 3,583,815 17,899 3,601,714 Net loss ( 2,846,071 ) 519,739 ( 2,326,332 ) N et loss per share ( 0.26 ) — ( 0.21 ) Three Months Ended December 31, 2019 As reported Adjustment As revised Condensed Consolidated Statements of Operations Cost of revenue $ 1,638,840 $ ( 23,601 ) $ 1,615,239 Gross profit 1,667,363 23,601 1,690,964 Product development 1,261,509 ( 638,008 ) 623,501 Selling, general and administrative 4,796,404 86,768 4,883,172 Net loss ( 4,338,536 ) 574,841 ( 3,763,695 ) Net loss per share ( 0.40 ) — ( 0.34 ) Six Months Ended December 31, 2019 As reported Adjustment As revised Condensed Consolidated Statements of Operations Cost of revenue $ 3,036,201 $ ( 41,261 ) $ 2,994,940 Gross profit 3,462,892 41,261 3,504,153 Product development 2,392,389 ( 1,157,986 ) 1,234,403 Selling, general and administrative 8,380,219 104,667 8,484,886 Net loss ( 7,184,607 ) 1,094,580 ( 6,090,027 ) Net loss per share ( 0.66 ) — ( 0.56 ) Three Months Ended March 31, 2020 As reported Adjustment As revised Condensed Consolidated Statement of Operations Cost of revenue $ 1,420,909 $ ( 24,690 ) $ 1,396,219 Gross profit 1,649,637 24,690 1,674,327 Product development 1,632,353 ( 757,566 ) 874,787 Selling, general and administrative 5,500,837 177,405 5,678,242 Net loss ( 5,348,980 ) 604,851 ( 4,744,129 ) Net loss per share ( 0.43 ) — ( 0.38 ) Nine Months Ended March 31, 2020 As reported Adjustment As revised Condensed Consolidated Statements of Operations Cost of revenue $ 4,457,110 $ ( 65,951 ) $ 4,391,159 Gross profit 5,112,529 65,951 5,178,480 Product development 4,024,742 ( 1,915,552 ) 2,109,190 Selling, general and administrative 13,881,056 282,072 14,163,128 Net loss ( 12,533,587 ) 1,699,431 ( 10,834,156 ) Net loss per share ( 1.11 ) — ( 0.96 )

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 8 three months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the fiscal year transition period comprised of six The condensed consolidated balance sheet for the year ended June 30, 2020, has been derived from our audited financial statements at that date but does not include all disclosures and financial information required by GAAP for complete financial statements. The information included in this quarterly report on Form 10-Q should be read in conjunction with our consolidated financial statements and notes thereto for the year ended June 30, 2020, which were included in our annual report on Form 10-K filed on September 29, 2020.
Principles of Consolidation	Principles of Consolidation Our accompanying condensed consolidated financial statements include the accounts of Akerna, our wholly owned subsidiaries and those entities in which we otherwise have a controlling financial interest. All significant intercompany balances and transactions have been eliminated in consolidation. We evaluate our ownership interests, contractual rights and other interests in entities to determine if the entities are variable interest entities, or VIEs, when we have a variable interest in those entities. Generally, a VIE is a legal entity in which the equity investors do not have the characteristics of a controlling financial interest or the equity investors lack sufficient equity at risk for the entity to finance its activities without additional subordinated financial support. These evaluations can be complex and involve judgment and the use of estimates and assumptions based on available historical information. If we determine that we hold a variable interest in a VIE and we are the primary beneficiary of the VIE, we must consolidate the VIE in our financial statements. In determining whether we are the primary beneficiary of a VIE, we consider qualitative and quantitative factors, including, but not limited to: which activities most significantly impact the VIE’s economic performance and which party controls such activities; the amount and characteristics of our investment; the obligation or likelihood for us or other investors to provide financial support; and the similarity with and significance to our business activities and the business activities of the other investors. Significant judgments related to these determinations include estimates about the current and future fair values and performance of these VIE’s operations and general market conditions. We determine whether we are the primary beneficiary of a VIE upon our initial involvement with the VIE and reassess our status on an ongoing basis.
Segment Reporting	Segment Reporting Our 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, t he Company has one operating segment, and the decision-making group is the senior executive management team. In the following table, revenue is disaggregated by primary geographical markets and revenue source. For the Three Months Ended 2020 2019 Primary geographical markets: United States $ 2,285,211 $ 3,054,670 Canada 1,270,109 28,385 Other 158,684 109,835 Total $ 3,714,004 $ 3,192,890 As of September 30 2020 As of June 30, 2020 Long-lived assets: United States $ 10,170,265 $ 10,254,374 Canada 5,345,092 - Total $ 15,515,357 $ 10,254,374
Use of Estimates	Use of Estimates The preparation of our condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts included in the financial statements and accompanying notes thereto. Actual results could differ materially from those estimates.
Accounts Receivable, Net	Accounts Receivable, Net We maintain an allowance for doubtful accounts equal to the estimated uncollectible amounts based on our historical collection experience and review of the current status of trade accounts receivable. The allowance for doubtful accounts was $ 0.2 million September 30, 2020 0.2 June 30, 2020
Concentrations of Credit Risk	Concentrations of Credit Risk We grant credit in the normal course of business to customers in the United States. We periodically perform credit analysis and monitor the financial condition of our customers to reduce credit risk. During the three months ended September 30, 2020, 2019 one government client accounted for 17 % and 24 30, 2020 two government clients accounted f or a total of 38 20 % one 63
Goodwill Impairment Assessment	Goodwill Impairment Assessment We evaluate and test the recoverability of our goodwill for impairment at least annually during October of each year or more often if circumstances indicate that goodwill may not be recoverable. To date, we have not recorded any impairment of our goodwill.
Foreign Currency Translation	Foreign Currency Translation We have Canadian operations with Canadian Dollar as the functional currency. Foreign exchange gains and losses and translation adjustments, which result from the process of remeasuring foreign currency transactions into the appropriate functional currency, were immaterial during the quarter ended September 30, 2020.
Supplemental Information Regarding Noncash Investing and Financing Activities	Supplemental Information Regarding Noncash Investing and Financing Activities During the three months ended September 30, 2020 acquired 100 % o ued at $ 25.2 3
Stock-Based Compensation	Stock-Based Compensation We measured stock-based compensation based on the fair value of the share-based awards on the date of grant and recognize the related costs on a straight-line basis over the requisite service period, which is generally the vesting period. During the three months ended September 30, 2020, we granted 451,925 2.2 four
Reclassifications and Revisions	Reclassifications and Revisions Certain prior year financial statement amounts have been reclassified for consistency with the current year presentation. Additionally, certain prior year financial statement amounts have been revised to correct misstatements in the prior year, please refer to Note 9
Recent Accounting Pronouncements	Recent Accounting Pronouncements The Financial Accounting Standards Board, or the FASB, has issued guidance to simplify the remeasurement of goodwill when impairment is identified. Under existing guidance we would have to perform procedures to determine the fair value of our assets and liabilities as of the testing date in a manner similar to the procedures necessary to allocate purchase price to acquired assets and liabilities in a business combination. Under the new guidance, the goodwill impairment charge is equal to the excess of the carrying value of the reporting unit to which goodwill is assigned and the fair value of that reporting unit. We have elected to adopt the guidance early effective July 1, 2020 and will utilize this approach if necessary when we perform our annual goodwill impairment test. The FASB has issued guidance related to the accounting for share-based compensation to six The FASB has issued guidance to revise accounting for revenue from contracts with customers, which supersedes the revenue recognition requirements and industry-specific guidance currently in effect for us. The new revenue standard requires an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled to in exchange for those goods or services. The new revenue standard is effective for our fiscal 2021 1 six The FASB has issued new guidance related to the accounting for leases. The new standard establishes a right-of-use model that requires a lessee to record a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of operations. Following our change in fiscal year effective on December 31, 2020, the new standard is effective for us beginning with our fiscal year ending December 31, 2022 and in interim periods thereafter. We have limited assets subject to operating lease and therefore expect the adoption of the new standard to result in the recognition of right of use assets and lease liabilities for any office or vehicle leases in effect at that date, we do not expect a significant impact to our results of operations. The FASB has issued guidance to introduce a new model for recognizing credit losses on financial instruments based on estimated current expected credit losses, or CECL. Under the new standard, an entity is required to estimate CECL on trade receivables at inception, based on historical information, current conditions, and reasonable and supportable forecasts. Following our change in fiscal year-end effective December 31, 2020, the new guidance is effective for us beginning on January 1, 2023. We are evaluating the impact of adoption of the new standard on our consolidated financial statements. The FASB has issued guidance regarding whether internal-use software development costs should be capitalized or charged to expense. Depending upon on the nature of the costs and the project stage in which they are incurred. Capitalized development costs are subject to amortization and impairment guidance consistent with existing internal-use software development cost guidance. Following our change in fiscal year end effective December 31, 2020, the guidance is applicable for us for the year ending December 31, 2021 The FASB has issued guidance clarifying the interactions between various standards governing investments in equity securities. The new guidance addresses accounting for the transition into and out of the equity method and measurement of certain purchased options and forward contracts to acquire investments. The standard is effective for us for annual and interim periods beginning on January 1, 2022 , with early adoption permitted. Adoption of the standard requires changes to be made prospectively. We do not anticipate a significant impact to our financial statements as a result of this new guidance.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Schedule of disaggregated by primary geographical markets and revenue	For the Three Months Ended 2020 2019 Primary geographical markets: United States $ 2,285,211 $ 3,054,670 Canada 1,270,109 28,385 Other 158,684 109,835 Total $ 3,714,004 $ 3,192,890 As of September 30 2020 As of June 30, 2020 Long-lived assets: United States $ 10,170,265 $ 10,254,374 Canada 5,345,092 - Total $ 15,515,357 $ 10,254,374

Significant Transactions (Table

Significant Transactions (Tables)	3 Months Ended
	Sep. 30, 2020
Business Combination [Abstract]
Schedule of acquisition date fair value of consideration	Preliminary Fair Value Common shares issued $ 25,203 Cash 5,724 Contingent co nsidera 817 Total preliminary fair value of consideration transferred $ 31,744
Schedule of fair values of assets acquired and liabilities	Preliminary Fair Value Cash $ 445 Accounts receivable 917 Prepaid expenses 149 Intangible assets and goodwill 30,433 Furniture, fixtures and equipment 1,327 Accounts payable and accrued expenses ( 978 ) Deferred revenue ( 549 ) Net assets acquired $ 31,744
Schedule of financial information combined results of operations	Three Months Ended September 30, 2020 2019 Revenues $ 3,790 $ 4,130 Net loss $ ( 4,686 ) $ ( 4,185 )

Fair Value (Tables)

Fair Value (Tables)	3 Months Ended
	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Schedule of reconciliation of fair values	Fair value balance as of June 30, 2020 $ 14,131,000 Change in fair value reported in the statements of operations ( 778,000 ) Change in fair value reported in other comprehensive income 70,000 Fair value balance as of September 30, 2020 $ 13,423,000
Schedule of fair value by using key inputs	Fair Value Assumptions - Convertible Notes September 30, 2020 June 30, 2020 Face value principal payable $ 17,000,000 $ 17,000,000 Original conversion price $ 11.50 $ 11.50 Value of Common Stock $ 3.64 $ 8.80 Expected term (years) 2.67 2.90 Volatility 68 % 45 % Market yield 28.0 % 23.9 % Risk free rate 0.1 0.2 % 0.2 %

Loss Per Share (Tables)

Loss Per Share (Tables)	3 Months Ended
	Sep. 30, 2020
Earnings Per Share [Abstract]
Schedule of diluted earnings per share	Three Months Ended 2020 2019 Shares issuable upon exchange of Exchangeable Shares 2,667,349 — Shares of common stock issuable in upon conversion of Convertible Notes 1,542,632 — Warrants 5,813,804 5,814,205 Unvested restricted stock units 824,143 — Unvested restricted stock awards 64,296 215,063 Total 10,912,224 6,029,268

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Schedule of future minimum lease payments	Three $ 226,687 2021 918,847 2022 439,633 2023 421,418 2024 426,495 2025 464,575 Thereafter 983,731 Total $ 3,881,386

Revisions of Previously Issue_2

Revisions of Previously Issued Financial Statements (Tables)	3 Months Ended
	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of financial statements	Three Months Ended September 30, 2019 As reported Adjustment As revised Con densed Consoli Cost of revenue $ 1,397,361 $ ( 17,660 ) $ 1,379,701 Gross profit 1,795,529 17,660 1,813,189 Product development 1,130,880 ( 519,978 ) 610,902 Selling, general and administrative 3,583,815 17,899 3,601,714 Net loss ( 2,846,071 ) 519,739 ( 2,326,332 ) N et loss per share ( 0.26 ) — ( 0.21 ) Three Months Ended December 31, 2019 As reported Adjustment As revised Condensed Consolidated Statements of Operations Cost of revenue $ 1,638,840 $ ( 23,601 ) $ 1,615,239 Gross profit 1,667,363 23,601 1,690,964 Product development 1,261,509 ( 638,008 ) 623,501 Selling, general and administrative 4,796,404 86,768 4,883,172 Net loss ( 4,338,536 ) 574,841 ( 3,763,695 ) Net loss per share ( 0.40 ) — ( 0.34 ) Six Months Ended December 31, 2019 As reported Adjustment As revised Condensed Consolidated Statements of Operations Cost of revenue $ 3,036,201 $ ( 41,261 ) $ 2,994,940 Gross profit 3,462,892 41,261 3,504,153 Product development 2,392,389 ( 1,157,986 ) 1,234,403 Selling, general and administrative 8,380,219 104,667 8,484,886 Net loss ( 7,184,607 ) 1,094,580 ( 6,090,027 ) Net loss per share ( 0.66 ) — ( 0.56 ) Three Months Ended March 31, 2020 As reported Adjustment As revised Condensed Consolidated Statement of Operations Cost of revenue $ 1,420,909 $ ( 24,690 ) $ 1,396,219 Gross profit 1,649,637 24,690 1,674,327 Product development 1,632,353 ( 757,566 ) 874,787 Selling, general and administrative 5,500,837 177,405 5,678,242 Net loss ( 5,348,980 ) 604,851 ( 4,744,129 ) Net loss per share ( 0.43 ) — ( 0.38 ) Nine Months Ended March 31, 2020 As reported Adjustment As revised Condensed Consolidated Statements of Operations Cost of revenue $ 4,457,110 $ ( 65,951 ) $ 4,391,159 Gross profit 5,112,529 65,951 5,178,480 Product development 4,024,742 ( 1,915,552 ) 2,109,190 Selling, general and administrative 13,881,056 282,072 14,163,128 Net loss ( 12,533,587 ) 1,699,431 ( 10,834,156 ) Net loss per share ( 1.11 ) — ( 0.96 )

Description of Business, Liqu_2

Description of Business, Liquidity and Capital Resources (Details) - USD ($)	1 Months Ended	3 Months Ended
	Oct. 30, 2020	Sep. 30, 2020	Sep. 30, 2019	Jun. 30, 2020
Description of Business, Liquidity and Capital Resources (Textual)
Net loss		$ (4,741,876)	$ (2,326,332)
Cash in operations		(4,181,159)	(3,142,174)
Working capital		900,000
Non recurring expenses		1,100,000
PPP loan		$ 2,000,000
Cost reduction initiatives, description		cost reduction initiatives reducing costs and identifying costs savings that we expect to result in annual savings of an additional $3.0 million to $4.0 million.
Loss from operations		$ (5,523,470)	$ (2,399,427)
Cash		$ 14,257,858		$ 24,155,828
Subsequent Event [Member]
Description of Business, Liquidity and Capital Resources (Textual)
Common stock, shares	5
Offering costs	$ 11

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - USD ($)	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Jun. 30, 2020
Primary geographical markets:
Total	$ 3,714,004	$ 3,192,890
Long-lived assets:
Long-Lived assets	15,515,357		$ 10,254,374
United States [Member]
Primary geographical markets:
Total	2,285,211	3,054,670
Long-lived assets:
Long-Lived assets	10,170,265		10,254,374
Canada [Member]
Primary geographical markets:
Total	1,270,109	28,385
Long-lived assets:
Long-Lived assets	5,345,092
Other [Member]
Primary geographical markets:
Total	$ 158,684	$ 109,835

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details Textual) $ in Millions	3 Months Ended
	Sep. 30, 2020USD ($)CustomersSegmentshares	Sep. 30, 2019	Jun. 30, 2020USD ($)
Summary of Significant Accounting Policies (Textual)
Allowance for doubtful accounts | $	$ 0.2		$ 0.2
Common stock valued | $	$ 25.2
Acquired entity ownership acquired	100.00%
Granted shares of restricted stock | shares	451,925
Granted fair value | $	$ 2.2
Number of Reportable Segments | Segment	1
Net accounts receivable [Member]
Summary of Significant Accounting Policies (Textual)
Concentration risk percentage		63.00%
Total revenues [Member]
Summary of Significant Accounting Policies (Textual)
Number of customer	1
One Government Customer [Member] | Total revenues [Member]
Summary of Significant Accounting Policies (Textual)
Concentration risk percentage	17.00%	24.00%
Number of customer	1
Two Government Customers [Member]
Summary of Significant Accounting Policies (Textual)
Concentration risk percentage	38.00%	20.00%
Two Government Customers [Member] | Total revenues [Member]
Summary of Significant Accounting Policies (Textual)
Number of customer	2
Two Government Customers One [Member] | Total revenues [Member]
Summary of Significant Accounting Policies (Textual)
Number of customer	2

Significant Transactions (Detai

Significant Transactions (Details) - USD ($)	3 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Jan. 15, 2020
Business Combination [Abstract]
Common shares issued	$ 25,200,000
Cash	5,724,000
Contingent consideration	817,000	$ 389,000	$ 389,000
Total preliminary fair value of consideration transferred	$ 31,744,000

Significant Transactions (Det_2

Significant Transactions (Details 1) $ in Thousands	Sep. 30, 2020USD ($)
Business Combination [Abstract]
Cash	$ 445
Accounts receivable	917
Prepaid expenses	149
Intangible assets and goodwill	30,433
Furniture, fixtures, and equipment	1,327
Accounts payable and accrued expenses	(978)
Deferred revenue	(549)
Net assets acquired	$ 31,744

Significant Transactions (Det_3

Significant Transactions (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Business Combination [Abstract]
Revenues	$ 3,790	$ 4,130
Net loss	$ (4,686)	$ (4,185)

Significant Transactions (Det_4

Significant Transactions (Details Textual) - USD ($)	Jul. 07, 2020	Sep. 30, 2020	Sep. 01, 2020	Jun. 30, 2020	Jul. 31, 2019
Business Combination (Textual)
Bussiness combination interst					1.00%
Selling general and administrative expenses		$ 1,000,000
Contingent consideration, description	We acquired 100% of the stock of Ample Organics by issuing 3.3 million exchangeable shares of one of our wholly-owned subsidiaries. The exchangeable shares may be exchanged, at the option of the holder, for shares of Akerna common stock on a one-for-one basis, therefore the exchangeable shares issued were valued at $7.65 per share, the closing price of an equivalent share of Akerna common stock, for an aggregate value of $25.2 million. The exchangeable shares are economically equivalent to shares of Akerna common stock. In addition to the stock consideration, we paid $5.7 million in cash, which was used to settle all of Ample's then outstanding debt and transaction costs. The agreement provides for contingent consideration of up to CAD$10,000,000, payable in exchangeable shares, payable if Ample's Recurring Revenue recognized during the 12 months after the acquisition date is CAD$9,000,000 or more. The contingent consideration amount is reduced by an amount equal to the product of CAD$6.67 multiplied by the difference between CAD$9,000,000 and the amount of Recurring Revenue realized during the 12 months following the acquisition. The contingent consideration was recorded as the estimated fair value of $0.8 million as of the acquisition date and will be adjusted to the estimated fair value in each subsequent reporting period until settlement.
Net income/loss from business combinations		$ 0.4
Revenues from business combinations	$ 1.2
Shareholders exchanged		627,225
Exchangeable shares value		$ 4,798,271
Voting preferred stock, par value		$ 0.0001
Common stock, shares		14,685,932	2,667,349	13,258,707
Common stock, shares outstanding		14,685,932	2,667,349	13,258,707
Preferred stock liquidation, description		special voting preferred stock has a par value of $0.0001 per share and a preference in liquidation of $1.00.

Fair Value (Details)

Fair Value (Details)	3 Months Ended
	Sep. 30, 2020USD ($)
Fair Value Disclosures [Abstract]
Fair value balance as of June 30, 2020	$ 14,131,000
Change in fair value reported in the statements of operations	(778,000)
Change in fair value reported in other comprehensive income	70,000
Fair value balance as of September 30, 2020	$ 13,423,000

Fair Value (Details 1)

Fair Value (Details 1) - USD ($)	3 Months Ended	12 Months Ended
	Sep. 30, 2020	Jun. 30, 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Face value principal payable	$ 17,000,000	$ 17,000,000
Original conversion price	$ 11.50	$ 11.50
Value of Common Stock	$ 3.64	$ 8.80
Expected term (years)	2 years 8 months 1 day	2 years 10 months 24 days
Volatility	68.00%	45.00%
Market yield	28.00%	23.90%
Risk free rate		0.20%
Maximum [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Risk free rate	0.20%
Minimum [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Risk free rate	0.10%

Fair Value (Details Textual)

Fair Value (Details Textual) - USD ($)	Jul. 07, 2020	Sep. 30, 2020	Jun. 30, 2020	Jun. 09, 2020	Jan. 15, 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Principal amount				$ 17,000,000
Purchase price				$ 15,000,000
Contingent consideration, description	We acquired 100% of the stock of Ample Organics by issuing 3.3 million exchangeable shares of one of our wholly-owned subsidiaries. The exchangeable shares may be exchanged, at the option of the holder, for shares of Akerna common stock on a one-for-one basis, therefore the exchangeable shares issued were valued at $7.65 per share, the closing price of an equivalent share of Akerna common stock, for an aggregate value of $25.2 million. The exchangeable shares are economically equivalent to shares of Akerna common stock. In addition to the stock consideration, we paid $5.7 million in cash, which was used to settle all of Ample's then outstanding debt and transaction costs. The agreement provides for contingent consideration of up to CAD$10,000,000, payable in exchangeable shares, payable if Ample's Recurring Revenue recognized during the 12 months after the acquisition date is CAD$9,000,000 or more. The contingent consideration amount is reduced by an amount equal to the product of CAD$6.67 multiplied by the difference between CAD$9,000,000 and the amount of Recurring Revenue realized during the 12 months following the acquisition. The contingent consideration was recorded as the estimated fair value of $0.8 million as of the acquisition date and will be adjusted to the estimated fair value in each subsequent reporting period until settlement.
Acquisition of ample		$ 817,000	$ 389,000		$ 389,000
Aggregate liability		$ 817,000
Ample [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Contingent consideration, description		The agreement provides for contingent consideration of up to CAD$10,000,000, payable in exchangeable shares, payable if Ample's Recurring Revenue recognized during the 12 months after the acquisition date is CAD$9,000,000 or more. The contingent consideration amount is reduced by an amount equal to the product of CAD$6.67 multiplied by the difference between CAD$9,000,000and the amount of Recurring Revenue realized during the twelve months following the acquisition.
Acquisition of ample		$ 817,000
Solo Sciences Inc [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of the contingent consideration		$ 0
Contingent consideration, description		(i) $0.01 per solo*TAGTM and solo*CODETM sold or (ii) 7% of net revenue. The fees were to be paid annually until the earlier of: (1) our shares trading above $12 per share for any consecutive 20 trading days in a 30-day period; (b) upon our no longer owning a majority stake in Solo; or (c) upon expiration of the patents related to solo*TAGTM and solo*CODETM, which is December 1, 2029.

Loss Per Share (Details)

Loss Per Share (Details) - shares	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Outstanding shares on fully diluted	10,912,224	6,029,268
Shares issuable upon exchange of Exchangeable Shares [Member]
Outstanding shares on fully diluted	2,667,349
Shares of common stock issuable in upon conversion of Convertible Notes [Member]
Outstanding shares on fully diluted	1,542,632
Warrants [Member]
Outstanding shares on fully diluted	5,813,804	5,814,205
Unvested restricted stock units [Member]
Outstanding shares on fully diluted	824,143
Unvested restricted stock awards [Member]
Outstanding shares on fully diluted	64,296	215,063

Commitments and Contingencies_2

Commitments and Contingencies (Details)	Sep. 30, 2020USD ($)
Commitments and Contingencies Disclosure [Abstract]
Three months ending December 31, 2020	$ 226,687
2021	918,847
2022	439,633
2023	421,418
2024	426,495
2025	464,575
Thereafter	983,731
Total	$ 3,881,386

Commitments and Contingencies_3

Commitments and Contingencies (Details Textual) - USD ($)	3 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Commitments and Contingencies (Textual)
Rent expense	$ 273,000	$ 36,000

Equity Method Investment and _2

Equity Method Investment and Related Party Transactions (Details) - USD ($)	1 Months Ended			3 Months Ended
	Aug. 30, 2020	Apr. 30, 2020	Jul. 30, 2019	Sep. 30, 2020	Jun. 30, 2020	Jan. 15, 2020	Jul. 31, 2019
Equity Method Investment and Related Party Transaction (Textual)
Related party transaction due to from related party				$ 392,000	$ 265,000	$ 291,000
Granted shares of restricted stock				451,925
Percentage of acquisition transactions							1.00%
Zol Solutions, Inc. [Member]
Equity Method Investment and Related Party Transaction (Textual)
Preferred stock purchased shares				203,000
Convertible into shares of common stock per share				$ 1.232
Carrying value of our initial investment				$ 250,000
Equity loss of investee				1,535
Tech Magic [Member]
Equity Method Investment and Related Party Transaction (Textual)
Related party transaction due to from related party				$ 553,000
Mr. Scott Sozio [Member]
Equity Method Investment and Related Party Transaction (Textual)
Base salary			$ 150,000
Granted shares of restricted stock	92,166	1,230		10,000
Cash bonus				$ 225,000
Ample [Member]
Equity Method Investment and Related Party Transaction (Textual)
Granted shares of restricted stock				38,527

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	1 Months Ended
	Oct. 30, 2020	Sep. 30, 2020	Sep. 01, 2020	Jun. 30, 2020
Subsequent Events (Textual)
Common stock, shares		14,685,932	2,667,349	13,258,707
Subsequent Event [Member]
Subsequent Events (Textual)
Common stock, shares	5,000,000
Offering costs	$ 11

Revisions of Previously Issue_3

Revisions of Previously Issued Financial Statements (Details) - USD ($)	3 Months Ended				6 Months Ended	9 Months Ended
	Sep. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2019	Mar. 31, 2020	Jun. 30, 2020
Total assets	$ 81,334,782						$ 58,529,619
Total liabilities	23,613,226						21,955,213
Total stockholders' equity	57,721,556						$ 31,870,154
Cost of revenue		$ 1,396,219	$ 1,615,239	$ 1,379,701	$ 2,994,940	$ 4,391,159
Gross profit		1,674,327	1,690,964	1,813,189	3,504,153	5,178,480
Product development	1,758,826	874,787	623,501	610,902	1,234,403	2,109,190
Selling, general and administrative		5,678,242	4,883,172	3,601,714	8,484,886	14,163,128
Operating expenses	$ 7,497,537			4,212,616
Net loss		$ (4,744,129)	$ (3,763,695)	$ (2,326,332)	$ (6,090,027)	$ (10,834,156)
Net loss per share	$ (0.34)	$ (0.38)	$ (0.34)	$ (0.21)	$ (0.56)	$ (0.96)
As Reported [Member]
Cost of revenue		$ 1,420,909	$ 1,638,840	$ 1,397,361	$ 3,036,201	$ 4,457,110
Gross profit		1,649,637	1,667,363	1,795,529	3,462,892	5,112,529
Product development		1,632,353	1,261,509	1,130,880	2,392,389	4,024,742
Selling, general and administrative		5,500,837	4,796,404	3,583,815	8,380,219	13,881,056
Net loss		$ (5,348,980)	$ (4,338,536)	$ (2,846,071)	$ (7,184,607)	$ (12,533,587)
Net loss per share		$ (0.43)	$ (0.40)	$ (0.26)	$ (0.66)	$ (1.11)
Adjustment [Member]
Cost of revenue		$ (24,690)	$ (23,601)	$ (17,660)	$ (41,261)	$ (65,951)
Gross profit		24,690	23,601	17,660	41,261	65,951
Product development		(757,566)	(638,008)	(519,978)	(1,157,986)	(1,915,552)
Selling, general and administrative		177,405	86,768	17,899	104,667	282,072
Net loss		$ 604,851	$ 574,841	$ 519,739	$ 1,094,580	$ 1,699,431
Net loss per share